motintin

FCPO Daily Commentary for 25th Aug 2010

2010-08-24T18:47:00.001+08:00

FCPO 3rd month Nov futures contract traded RM50 lower to close at RM2510 levels as compare to previous trading sessions with a total of 17,235 lots traded in the market. FCPO price opened almost unchanged as compare to previous settlement price and plunge lower during trading sessions as soybean oil and crude oil electronic trading were traded weak.
FCPO price traded lower after attempt to penetrate previous high at RM2569 failed while FCPO price fails to hold above previous support levels at RM2540 regions. Technically, FCPO price seems temporary supported on RM2503 support levels; 50% Fibonacci support levels, in the hourly price chart. Failure to hold FCPO traded price above support levels at RM2502 and RM2448 shall indicates further selling pressure. Resistance levels seen at RM2550 and RM2570 regions.

FKLI Daily Commentary for 25th Aug 2010

2010-08-24T18:45:00.001+08:00

FKLI Aug Futures contract traded 2.0 points lower to close at 1399.0 levels as compare to previous trading session to with a total of 5,108 lots traded in the market. Wild trading day for FKLI price trading as FKLI open lower for trading and soon reach new height before plunge lower towards day low as regional indices sudden turn towards south during 2nd trading sessions.
FKLI price seems supported above previous support levels at 1396 region before manage to surge higher towards 1403; at 38.2% Fibonacci resistance levels; in the hourly price. However, FKLI price seems falling towards day low to reach 1394 before settle at 1399; 61.8% Fibonacci rebound resistance levels. Technically, FKLI price seems likely to undergo some correction phase where next nearest support levels seen at 1390 and 1383.5 regions. Failure to hold FKLI traded price above support levels shall further indicates more selling pressure. However, resistance levels seen at 1403 and 1417 regions.

Crude Oil Declines to Six-Week Low Amid Signs U.S. Recovery Is Faltering

2010-08-23T09:58:00.000+08:00

Crude oil traded little changed near a six-week low as forecasts that U.S. home sales probably plunged in July added to concerns the economic recovery in the biggest oil-consuming nation is faltering.

Purchases of new and existing houses dropped 12 percent to a 5.01 million annual pace, the lowest since March 2009, according to the median forecast of 54 economists surveyed by Bloomberg News. Oil slipped 1.3 percent on Aug. 20, a day after the Labor Department said weekly claims for unemployment benefits climbed to the highest level since November.

“Concerns over U.S. growth weighed on oil demand sentiment,” Mark Pervan, head of commodity research at Australia and New Zealand Banking Group Ltd. in Melbourne, said in a note. “Concerns over the U.S. economy also revived risk aversion, which firmed the U.S. dollar and weakened the euro.”

Crude oil for October delivery was at $73.87 a barrel, up 5 cents, in electronic trading on the New York Mercantile Exchange at 9:27 a.m. Sydney time. The September contract fell 97 cents to $73.46 on Aug. 20, when it expired. Futures dropped 2.6 percent last week.

The dollar traded at $1.2691 a euro at 9:28 a.m. Sydney time, from $1.2712 on Aug. 20. A stronger U.S. currency limits the need of investors for commodities to hedge against inflation.

Brent crude for October settlement traded at $74.41 a barrel, up 15 cents, on the London-based ICE Futures Europe Exchange at 8:38 a.m. Sydney time. The contract dropped $1.04, or 1.4 percent, to $74.26 on Aug. 20.

FCPO Daily Commentary for 23th Aug 2010

2010-08-23T08:30:00.002+08:00

FCPO 3rd month Nov futures contract traded RM51 lower to close at RM2544 levels as compare to previous trading sessions with a total of 11,548 lots traded in the market. FCPO price opened lower for trading as soybean oil and crude oil were settle lower during overnight trading but FCPO price soon consolidate within price range during trading sessions.
FCPO price was trading above support levels at RM2543; 61.8% Fibonacci support levels, in the hourly price chart before attempt to penetrate day high at RM2461 regions. Technically, FCPO price seems temporary supported around at RM2543 regions but yet any sign of reversal appear in the hourly price chart after 5 – day consecutive south trading. Next nearest support levels would be seen at RM2517 and RM2491 while resistance levels seen at RM2560 and RM2604 regions.

FKLI Daily Commentary for 23th Aug 2010

2010-08-23T08:29:00.000+08:00

FKLI Aug Futures contract traded 1.0 points higher to close at 1390.0 levels as compare to previous trading session to with a total of 4,480 lots traded in the market. FKLI price opened lower for trading as Dow Jones overnight settlement was traded lower while regional indices traded lower in the earlier trading sessions but FKLI soon manage to recover towards north to recover from losing ground.
FKLI price manage to rest on support levels at 1384; 61.8% Fibonacci support levels, in the hourly chart before manage to rebound to test resistance levels at 1393, 78.6% Fibonacci resistance level. Technically, FKLI was expected to trade higher in the coming trading sessions provided support levels at 1384 and 1378 were not violated in the coming trading sessions. However, FKLI must overcome resistance levels at 1397 and 1412 in order for the rally to continue trading higher.

Oil Trades Near 6-Week Low as U.S. Jobless Claims Prompt Recovery Concerns

2010-08-20T10:24:00.001+08:00

Crude oil traded little changed near a six-week low after falling as increased U.S. jobless claims and a contraction in manufacturing added to concern the economic rebound in the world’s biggest oil-consuming country is slowing.

Oil, which is down 1.3 percent for the week, fell yesterday after the Labor Department said initial jobless claims rose to the highest level since November. The Federal Reserve Bank of Philadelphia’s general economic index dropped to the lowest reading since July 2009. Total U.S. petroleum inventories are the highest in at least 20 years, Energy Department figures show.

“Sentiment and the fundamental news at the moment is still quite bearish, and I think that will weigh on the market and probably see prices lower,” said Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney. “I think $70 to $68 is on the cards.”

Crude oil for September delivery was at $74.37 a barrel, down 6 cents, in electronic trading on the New York Mercantile Exchange at 10:06 a.m. Sydney time. Yesterday, the contract fell 99 cents, or 1.3 percent, to $74.43, the lowest settlement price since July 7. Futures are up 2.6 percent from a year ago.

Initial jobless claims rose by 12,000 to 500,000 in the week ended Aug. 14, U.S. Labor Department figures showed. Claims exceeded all estimates of economists surveyed and compared with the median forecast of 478,000.

Brent crude oil for October settlement was little changed at $75.21 a barrel on the ICE Futures Europe Exchange in London at 10:05 a.m. Sydney time. It slipped $1.17, or 1.5 percent, to end the session at $75.30 a barrel yesterday.

Equities Decline

“U.S. stocks tumbled on the back of weaker-than-expected economic data, with unemployment claims unexpectedly jumping to the highest level in 9 months and the Philadelphia Fed survey showed manufacturing had shrunk,” Ben Potter, a market strategist at IG Markets in Melbourne, said in an e-mailed note.

The Federal Reserve Bank of Philadelphia’s general economic index fell to minus 7.7 this month. Negative readings signal contraction in the area covering eastern Pennsylvania, southern New Jersey and Delaware. Economists forecast the measure would rise to 7, according to the median of 58 projections in a Bloomberg News survey.

The Standard & Poor’s 500 Index declined 1.7 percent in New York, and the Dow Jones Industrial Average dropped 1.4 percent. The dollar climbed yesterday, reducing the appeal of commodities as an investment.

A U.S. Energy Department report on Aug. 18 showed that total petroleum stockpiles climbed 5.34 million barrels to 1.13 billion in the week ended Aug. 13, the highest level since at least 1990. Supplies of crude oil fell 818,000 barrels to 354.2 million barrels, according to the Energy Department report. Gasoline stockpiles dropped 39,000 barrels to 223.3 million.

Gold Rises to Seven-Week High as U.S. Unemployment Spurs Demand for Haven

2010-08-20T10:15:00.001+08:00

Gold futures rose to a seven-week high after a U.S. report showed an unexpected jump in initial jobless claims, adding to concern that the economy is slowing and boosting demand for bullion as a haven.

Claims rose by 12,000 to 500,000 in the week ended Aug. 14, the Labor Department said today. That exceeded all estimates of economists surveyed by Bloomberg News. Before today, gold climbed 12 percent this year, outperforming equities, on signs that global growth may be losing momentum.

“There’s tremendous uncertainty and the recovery is spotty,” Caesar Bryan, who manages $609 million in the GAMCO Gold Fund Inc., said today in a Bloomberg Television interview in New York. Gold “is in a multiyear bull market. Prices are going to go up.”

Gold futures for December delivery rose $4.60, or 0.4 percent, to $1,236 an ounce at 9:50 a.m. on the Comex in New York, after touching $1,236.80, the highest price for a most- active contract since July 1.

“Concerns about a slowing economy in the second half still prevail, supporting the safe-haven asset,” Lee Suk Jin, a commodities analyst with Seoul-based Tong Yang Securities Inc., wrote in a report today. “In the short term, gold may continue to be propped up by demand from investors trying to avoid risky assets due to uncertainties in the markets.”

Before today, gold futures gained 5.9 percent in the previous three weeks as concern deepened that the global recovery may falter.

FCPO Daily Commentary for 20th Aug 2010

2010-08-20T08:33:00.002+08:00

FCPO 3rd month Nov futures contract traded RM15 lower to close at RM2595 levels as compare to previous trading sessions with a total of 13,658 lots traded in the market. FCPO price opened lower trading as soybean oil and crude oil traded lower during overnight trading but FCPO soon manage to recover from losses as soybean oil and crude oil electronic trading were traded higher during trading sessions.
FCPO price manage to reach support levels at RM2570; 200% Fibonacci support levels, in the hourly price chart while RM2580 also seen as another support levels which indirect forms a support range for FCPO price trading. Technically, FCPO price seem manage to rebound 61.8% Fibonacci resistance levels at RM2604 upon complete on rebound wave count where next nearest support levels were expected around RM2571 and RM2556 in the coming trading sessions. However, FCPO price must not be trading over resistance levels at RM2604 and RM2632 in order for correction wave to remain intact.

FKLI Daily Commentary for 20th Aug 2010

2010-08-20T08:32:00.002+08:00

FKLI Aug Futures contract traded 3.5 points higher to close at 1389.0 levels as compare to previous trading session to with a total of 6,964 lots traded in the market. FKLI opened higher for trading as regional indices were traded higher during earlier trading sessions but profit taking soon come into picture after FKLI were traded almost 10 points higher as compare to pervious trading sessions.
FKLI price surge higher after found support levels at 1377; 78.6% Fibonacci support level, in the preiovus trading sessions before FKLI was traded higher to reach high at 1395.5; 161.8% Fibonacci resistance level, in the hourly price chart. Technically, FKLI seems undergoing minor correction wave 4 where critical support levels at 1384 and 1377; 61.8% and 100% Fibonacci support level, were not violated in the coming trading sessions. However, FKLI must be capable to overcome resistance levels at 1395.5 and 1400 in order further affirm uptrend remain strong to thrust higher in the coming trading sessions.

Crude Oil Trades Near Five-Week Low on Signs Economic Growth Is Faltering

2010-08-17T10:00:00.000+08:00

Crude oil traded near a five-week low after Asian equities declined, New York manufacturers’ orders fell and U.S. homebuilders turned more pessimistic, increasing concern that global economic growth is faltering.

Oil dropped for a fifth day yesterday, the worst run of losses in more than a month, after economic growth in Japan missed expectations. The Federal Reserve Bank of New York reported that orders and sales dropped in August for the first time in more than a year.

“The market is still concerned about weakness in the global economy,” said Ken Hasegawa, commodity-derivatives sales manager at brokerage Newedge in Tokyo.

Crude for September delivery was at $75.33 a barrel, up 9 cents, at 9:25 a.m. in Singapore on the New York Mercantile Exchange. Yesterday, the contract fell 15 cents to settle at $75.24 a barrel, the lowest level since July 12. Futures have dropped 5.1 percent this year.

The Federal Reserve Bank of New York’s so-called Empire State factory index showed that bookings dropped for the first time since June 2009, while sales fell at the fastest pace since March 2009. The National Association of Home Builders/Wells Fargo confidence index unexpectedly declined to a 17-month low.

The Nikkei 225 weakened as much as 1.2 percent to 9,084.24 in Tokyo, dropping for a second day. The broader Topix index retreated as much as 1 percent.

Homebuilder Confidence

U.S. equities were mixed. The Standard & Poor’s 500 Index rose less than 0.1 percent to 1,079.38 as of 4 p.m. in New York, and the Dow Jones Industrial Average dropped 1.14 points to 10,302.01.

The National Association of Home Builders/Wells Fargo confidence index dropped to 13 this month, the lowest level since March 2009, from 14 in July, the Washington-based group said yesterday. Economists forecast a reading of 15, according to the median estimate in a Bloomberg survey. Readings of less than 50 mean that more respondents said conditions were poor.

Federal Reserve policy makers last week announced their first attempt to bolster growth since March 2009.

“If there is more weak data from U.S. economic indices in the rest of the week, the market may go down to around $72 a barrel,” said Newedge’s Hasegawa.

Gross domestic product in Japan climbed an annualized 0.4 percent in the second quarter, the country’s Cabinet Office said yesterday, pushing the economy into third place behind the U.S. and China. The median estimate of 19 economists surveyed by Bloomberg News was for growth of 2.3 percent.

Brent crude oil for October was at $75.66 a barrel, 1.1 percent higher on the London-based ICE Futures Europe Exchange. It rose 0.2 percent to settle at $75.63 yesterday. The September contract, which expired at the close yesterday, fell 26 cents, or 0.4 percent, to settle at $74.85 a barrel.

FCPO Daily Commentary for 17th Aug 2010

2010-08-17T08:09:00.002+08:00

FCPO 3rd month Nov futures contract traded RM12 lower to close at RM2678 levels as compare to previous trading sessions with a total of 14,719 lots traded in the market. FCPO price settled lower after open higher for trading around RM2694 levels before starts to plunge lower before end of trading sessions as soybean oil and crude oil electronic trading were traded lower during trading sessions despite soybean oil was settled higher during overnight trading.
FCPO price plunge lower after attempt to penetrate resistance levels RM2730 and RM2700 failed during trading sessions. Technically, FCPO price seems would trade lower in the coming trading sessions after trading price manage to penetrate support trend line in the hourly price chart. Wave 4 count to likely complete correction phase around support levels at RM2637 and RM2613 regions provided resistance levels at RM2700 and RM2736 were not violated in the coming trading sessions.

FKLI Daily Commentary for 17th Aug 2010

2010-08-17T08:08:00.002+08:00

FKLI Aug Futures contract traded 8.0 points higher to close at 1369.5 levels as compare to previous trading session to with a total of 5,028 lots traded in the market. FKLI opened lower for trading as regional indices and Dow Jones Futures were traded lower in the morning but soon manage to recover and traded higher as Shanghai Index were traded higher while Dow Jones Futures electronic trading turn green during trading sessions.
FKLI price continue to surge higher during trading sessions after reached support levels at 1355.5 regions; 38.2% Fibonacci support levels in the hourly price. Technically, FKLI continue to surge higher after wave 4 count to complete at 1355; 38.2% Fibonacci support levels before launch wave 5 where 1370 view as 61.8% Fibonacci resistance levels. FKLI would expected to trade higher in the coming trading sessions provided support levels at 1361 and 1355 levels were not violated during trading sessions while preferably traded price trading above resistance levels at 1370 and 1379 regions.

Crude Oil Rises From One-Month Low as U.S. Manufacturing May Have Expanded

2010-08-16T09:09:00.000+08:00

Crude oil rose from a one-month low as traders increased bets that prices will rise and analysts predicted manufacturing in the U.S. may have expanded last month, spurring optimism over a recovery in fuel demand.

U.S. factory production and housing starts probably rose in July, economists said before reports this week. Speculative long positions, or bets prices will rise, increased 8 percent in the week ended Aug. 10, according to the U.S. Commodity Futures Trading Commission.

“Open positions increasing to the long side could add a dollar or two over the coming days,” said Peter McGuire, managing director at CWA Global Markets Pty in Sydney.

Crude oil for September delivery rose as much as 39 cents, or 0.5 percent, to $75.78 a barrel on the New York Mercantile Exchange and was at $75.68 a barrel at 7:33 a.m. in Singapore. The contract fell 0.5 percent on Aug. 13 to settle at $75.39, the lowest price since July 12. Futures fell 6.6 percent for the week, the most since the period ended July 2.

Oil declined last week as a lack of jobs prompted Americans to hold back on spending, according to Commerce Department figures. U.S. gasoline supplies also increased for the seventh week.

Brent crude oil for September settlement fell 41 cents, or 0.5 percent, to $75.11 a barrel on the London-based ICE Futures Europe Exchange on Aug. 13.

FCPO Daily Commentary for 13th Aug 2010

2010-08-13T09:10:00.002+08:00

FCPO 3rd month Oct futures contract traded RM4 lower to close at RM2673 levels as compare to previous trading sessions with a total of 10,891 lots traded in the market. FCPO price manage to recover partial losses from previous 2 – day sell rally as crude oil and soybean oil were traded lower during electronic trading sessions.
FCPO price manage to rebound towards RM2704 regions; 61.8% Fibonacci resistance levels, before to settle at RM2673; 61.8% Fibonacci support levels, in hourly trading price chart. Technically, FCPO price seems temporary topped around RM2704 resistance levels in attempt to test further support levels at RM2637 and RM2614; both are 50% and 61.8% Fibonacci support levels, for correction phase count. However, FCPO price must not trade above resistance levels at RM2704 and RM2736 in order for correction phase to remain intact.

FKLI Daily Commentary for 13th Aug 2010

2010-08-13T09:06:00.001+08:00

FKLI Aug Futures contract traded 1.5 points lower to close at 1346.0 levels as compare to previous trading session to with a total of 7,734 lots traded in the market. FKLI opened lower for trading but manage to recover from losses soon as most of the regional indices were recovered during the 2nd trading sessions despite Dow Jones Futures electronic was still trading below green during trading sessions.
FKLI price was well holding above support levels at 1347.5; 278,6% Fibonacci support levels, before manage to rebound towards resistance levels at 1349 regions; 38.2% Fibonacci resistance level. Technically, FKLI price seems trading on minor wave 3 trading south provided resistance levels at 1356 and 1367 were not violated in the coming trading sessions. However, it’s essential for FKLI price to trade below support levels at 1342 and 1339 in order to further affirm on south trading direction.

Oil Rebounds After Slumping to One-Month Low on Higher U.S. Jobless Claims

2010-08-13T09:00:00.001+08:00

Crude oil rebounded from a one-month low and traded above $76 a barrel in New York after falling as U.S. applications for unemployment benefits rose.

Oil, which has declined 5.7 percent this week, rose for the first time in four days. Futures fell the most in six weeks yesterday as initial jobless claims rose by 2,000 to 484,000 last week, the highest level since February.

Crude oil for September delivery gained as much as 39 cents, or 0.5 percent, to $76.13 a barrel and was at $76.08 in electronic trading on the New York Mercantile Exchange at 9:19 a.m. Sydney time. Yesterday, the contract fell $2.28 to $75.74, the lowest settlement since July 12. Futures are up 8 percent from a year ago.

Brent crude oil for September settlement fell $2.12, or 2.7 percent, to end the session at $75.52 a barrel on the London- based ICE Futures Europe Exchange yesterday. It was the lowest close since July 21.

FCPO Daily Commentary for 12th Aug 2010

2010-08-12T09:08:00.002+08:00

FCPO 3rd month Oct futures contract traded RM6 higher to close at RM2676 levels as compare to previous trading sessions with a total of 7,932 lots traded in the market. FCPO price manage to recover from losing ground after opened and traded lower during early trading sessions due to weak soybean oil and crude oil electronic trading during the trading sessions.
FCPO price penetrate previous support levels at RM2668 to reach RM2652 levels before traded price submerge into consolidation phase from RM2660 to RM2680 regions. Technically, FCPO trading could temporary found support around RM2660 regions; 38.2% Fibonacci support levels while next nearest support levels seen at RM2637; 50% Fibonacci support levels, in the hourly price chart. However, FCPO trading price would encounter some selling pressure around resistance levels at RM2694 and RM2704; both are 50% and 61.8% Fibonacci resistance levels

FKLI Daily Commentary for 12th Aug 2010

2010-08-12T09:08:00.001+08:00

FKLI Aug Futures contract traded 8.5 points lower to close at 1347.5 levels as compare to previous trading session to with a total of 6,237 lots traded in the market. FKLI opened lower for trading and continue trading lower during trading sessions as most of the regional indices were plunge lower with Nikkei index plunge more than 2%, Shanghai Index plunge 1.5% as the major leading indices.
FKLI plunge lower after long consolidation around 1351 to 1355 regions before trading lower towards next support levels at 1345 regions; 61.8% Fibonacci support levels. Technically, FKLI seems encounter some buying interest around support levels at 1345 and 1337 regions. FKLI would trigger further selling activities once support levels seem fails to hold trading price above support levels. On the contrary, FKLI trading price would encounter some degree of resistance around 1354 and 1362 regions.

Oil Trades Near Seven-Day Low as Productivity Drop Casts Doubt on Recovery

2010-08-11T09:17:00.001+08:00

Crude oil was little changed near a seven-day low after the Labor Department reported the productivity of U.S. workers fell in the second quarter, a sign the economy is struggling to recover.

Oil dropped 1.5 percent yesterday as the department said the U.S. lost momentum heading into the second year of the recovery from the recession. Crude pared its losses after Federal Reserve policy makers announced their first attempt to bolster growth since March 2009. Gasoline supplies rose last week, according to the American Petroleum Institute.

“Sentiment in the U.S. is somewhat mixed,” said Mike Sander, an investment adviser at Sander Capital Advisors in Seattle. “I still think we’re in dire shape. For now, it looks like the markets might hold.”

Crude oil for September delivery traded at $80.37 a barrel, up 12 cents, in electronic trading on the New York Mercantile Exchange at 9:18 Sydney time. Yesterday, the contract fell $1.23 to $80.25, the lowest price since July 30. Futures have climbed 16 percent in the past year.

The Labor Department’s measure of employee output per hour decreased at a 0.9 percent annual rate, the first drop since the end of 2008. The median forecast of economists surveyed by Bloomberg News projected a 0.1 percent gain.

The Fed decided to maintain its holdings of securities to prevent money from being drained out of the financial system and to keep the slowing U.S. economy from relapsing into recession. The central bank said it will reinvest principal payments on its mortgage holdings into long-term Treasury securities.

Price Forecast

The Energy Department increased its crude-oil price forecast for 2010 to an average $79.13 a barrel from $78.69 in July, according to its monthly Short-Term Energy Outlook, released yesterday. The department raised its estimate for global oil consumption this year to 85.91 million barrels a day from 85.82 million last month.

A weather system in the southeastern Gulf of Mexico has a 70 percent chance of becoming a tropical storm in the next 48 hours, according to a U.S. National Hurricane Center forecast at 2 p.m. Miami time.

U.S. crude oil supplies declined 2.8 million barrels last week, the American Petroleum Institute said. An Energy Department report today may show that inventories dropped by 2 million barrels, according to a Bloomberg News survey.

Gasoline stockpiles increased 729,000 barrels last week, the Petroleum Institute said. The Energy Department report may show inventories rose 250,000 barrels from 223 million, the Bloomberg News survey shows.

The Petroleum Institute collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey.

Brent crude oil for September settlement fell $1.39, or 1.7 percent, to $79.60 a barrel on the London-based ICE Futures Europe Exchange yesterday.

FCPO Daily Commentary for 11th Aug 2010

2010-08-11T08:41:00.001+08:00

FCPO 3rd month Oct futures contract traded RM60 lower to close at RM2670 levels as compare to previous trading sessions with a total of 11,009 lots traded in the market. FCPO price plunge lower during trading sessions as soybean oil and crude oil were traded lower during electronic trading while unfavorable ITS and SGS export figure were released during morning and afternoon trading sessions.
FCPO price penetrate previous support levels at RM2710 when open for trading at RM2708 and continue to plunge lower in attempt to test support levels at RM2690 and RM2660; both are 23.6% and 38.2%, in the hourly price chart. Technically, FCPO price seems more towards downside where next nearest support seen at RM2660 and RM2644 while crucial support levels seen at RM2538 regions. Failure to hold trading price above support levels shall trigger further selling pressure into the market. Resistances levels were seen at RM2695 and RM2736 regions.

FKLI Daily Commentary for 11th Aug 2010

2010-08-11T08:40:00.000+08:00

FKLI Aug Futures contract traded 9.5 points lower to close at 1356.0 levels as compare to previous trading session to with a total of 3,431 lots traded in the market. FKLI opened unchanged and continue to trade lower during trading sessions as regional indices especially Shanghai Index plunge more than 2% upon end of trading sessions while Dow Jones Futures electronic trading was traded lower during the trading hours.
FKLI plunge lower during trading sessions after attempt to penetrate resistance levels at 1367 failed while previous support levels at 1361 seems fails to hold against selling pressure. Technically, FKLI seems trading south in the coming trading sessions provided support levels at 1355 and 13505 fails to hold firm against the selling activities. However, FKLI would be affirming bullish sentiment back into rally once resistance levels at 1367 and 1379 were violated in the coming trading sessions.

Oil Trades Above $81 After Rising With Equities on Optimism Over Economy

2010-08-10T10:10:00.001+08:00

Crude oil was little changed above $81 a barrel in New York after rising for the first time in four days as advancing equity markets buoyed confidence that the economic rebound will spur fuel demand.

Oil rose 1 percent yesterday as the MSCI World Index of equities in 24 developed nations climbed to a 12-week high amid speculation slower U.S. jobs growth will prompt the Federal Reserve to extend efforts to strengthen the economy. U.S. crude stockpiles probably declined last week, according to a Bloomberg News survey before an Energy Department report tomorrow.

“Sentiment in the oil market is very mixed,” Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney, said by telephone. “We’re stuck in a range. If oil takes out $82.50, it’ll be a different ball game. It may test $85.”

Crude oil for September delivery was at $81.49 a barrel, up 1 cent, in electronic trading on the New York Mercantile Exchange at 10:59 a.m. Sydney time. Yesterday, the contract rose 78 cents to settle at $81.48. Futures have climbed 16 percent in the past year.

The MSCI index advanced 0.5 percent in New York, the Standard & Poor’s 500 Index gained 0.6 percent and the Dow Jones Industrial Average increased 0.4 percent. The Federal Open Market Committee meets today.

A report that U.S. companies hired fewer workers than forecast last month intensified a debate among economists over whether Fed policy makers will take an incremental step toward providing more stimulus.

Crude Inventories

Crude stockpiles in the U.S. probably declined 2 million barrels last week, according to the Bloomberg survey. Refineries probably ran at 90.7 percent, down 0.5 percentage point from the prior week, the survey showed.

The Energy Department is scheduled to release its weekly report at 10:30 a.m. tomorrow in Washington.

Global refining margins, or the profit from turning crude oil into fuels such as gasoline and diesel, averaged $4.58 a barrel from July 1 to Aug. 5, down 17 percent from a second- quarter average of $5.49 a barrel, according to data published yesterday by BP Plc.

The margin along the U.S. Gulf Coast, home to 43 percent of the country’s refining capacity, was $4.84 a barrel, down 27 percent from the second-quarter average, according to BP’s Global Indicator Margin. Lower refinery margins reduce the incentive to buy and process oil into gasoline and other fuels.

Brent crude oil for September settlement traded at $81.05 a barrel, up 6 cents, on the London-based ICE Futures Europe exchange at 11:03 a.m. Sydney time. Yesterday, the contract rose 83 cents, or 1 percent, to settle at $80.99.

Soybean Premiums Drop as U.S. Farmers Boost Sales Following Futures Rally

2010-08-10T09:55:00.000+08:00

Cash premiums for soybeans shipped to export terminals near New Orleans declined relative to Chicago futures as farmers increased sales after prices rallied for a ninth straight session. Corn premiums were unchanged.

The spot-basis bid, or premium, for soybeans delivered in August dropped to 80 cents to 94 cents a bushel above November futures on the Chicago Board of Trade from 92 cents to $1 on Aug. 6, U.S. Department of Agriculture data show. Corn premiums for delivery this month were 25 cents to 30 cents above September futures.

“The cash soybean market is weaker because farmers are moving more of last year’s crop,” said Dax Wedemeyer, an analyst at U.S. Commodities Inc. in West Des Moines, Iowa.

Soybean futures for November delivery rose 1.5 cents, or 0.1 percent, to close at $10.35 a bushel at 1:15 p.m. on the Chicago Board of Trade. Prices gained for the ninth straight session, the longest rally since September 2007.

Corn futures for September delivery fell 2 cents, or 0.5 percent, to $4.03 a bushel. On Aug. 5, the price reached $4.2525, the highest level for the contract since Jan. 12.

Government inspectors examined 7.13 million bushels of soybeans for export in the week ended Aug. 5, down 40 percent from a year earlier, the USDA said today in a report. Corn inspections rose 17 percent.

“Soybean shipments are slowing because exporters are waiting for big crops” that farmers will begin harvesting in the next six weeks, Wedemeyer said. “Corn demand is holding up a little better.”

FCPO Daily Commentary for 10th Aug 2010

2010-08-10T08:30:00.003+08:00

FCPO 3rd month Oct futures contract traded RM70 higher to close at RM2731 levels as compare to previous trading sessions with a total of 14,200 lots traded in the market. FCPO price open higher for trading and continue traded higher during trading sessions as soybean oil and crude oil electronic trading were traded higher during electronic trading sessions.
FCPO price penetrate daily resistance trend line at RM2680 regions and continue to search higher resistance regions before settle at RM2731 by the end of trading sessions. Technically, FCPO price expected to trade higher on bullish sentiment provided support levels at RM2700 and RM2668; both are 23.6% and 38.2% Fibonacci support levels, were not violated in the coming trading sessions. However, FCPO price would expect to encounter some selling pressure around resistance levels at RM2747 and RM2807 regions; 78.6% and 100% Fibonacci resistance levels.

FKLI Daily Commentary for 10th Aug 2010

2010-08-10T08:30:00.002+08:00

FKLI Aug Futures contract traded 2.5 points higher to close at 1365.5 levels as compare to previous trading session to with a total of 3,962 lots traded in the market. FKLI opened lower upon open for trading sessions as Nikkei index was traded lower but FKLI soon manage to recover from losses as Hang Seng index and other regional indices manage to recover during trading sessions.
FKLI succeed in attempt to penetrate hourly support trend line seen at 1363 regions while attempt manage to search support at 1358 regions; 78.6% Fibonacci support levels at 1379 regions. Technically, FKLI would trigger further sells activities if traded price fails to penetrate resistance levels at 1369 and 1379 regions. However, FKLI would only be further affirming on bearish sentiment provided support levels at 1355 and 1350.5 fails to hold against the selling pressure.

Oil Rises First Time in Four Days on Optimism Over U.S. Economic Recovery

2010-08-09T08:59:00.001+08:00

Crude rose for the first time in four days amid optimism fuel demand will increase because of improved prospects for an economic recovery in the U.S., the world’s biggest oil-consuming country.

Oil advanced as economists surveyed by Bloomberg News forecast U.S. retail sales probably climbed in July for the first time in three months as incentives spurred auto purchases. The 0.5 percent estimated gain followed a 0.5 percent decline in June. An Energy Department report Aug. 4 showed U.S. crude stockpiles fell 2.8 million barrels to 357.9 million.

“The demand outlook is improving, albeit slowly,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “Where we are at the moment at $80 a barrel is probably where we should be, based on fundamentals,” he said.

Crude oil for September delivery rose as much as 25 cents, or 0.3 percent, to $80.95 a barrel in electronic trading on the New York Mercantile Exchange. It was at $80.85 at 9:40 a.m. Sydney time. The contract fell $1.31, or 1.6 percent, to $80.70 on Aug. 6. Futures are 15 percent higher than a year ago.

Oil declined on Aug. 6 after the U.S. Labor Department said private payrolls that exclude government agencies rose by 71,000, less than forecast, after a gain of 31,000 in June that was smaller than previously reported.

“We do have these negative blips on the radar every now and then, and U.S. non-farm payrolls was a pretty significant macro-data release,” National Australia Bank’s Westmore said. “I certainly don’t think that the market balance at the moment justifies a price of $84 to $85.”

Brent crude oil for September settlement rose as much as 33 cents, or 0.4 percent, to $80.49 a barrel on the London-based ICE Futures Europe exchange. It was at $80.30 at 8:17 a.m. Sydney time. The contract dropped $1.45, or 1.8 percent, to end the session at $80.16 on Aug. 6.

FCPO Daily Commentary for 9th Aug 2010

2010-08-09T00:06:00.002+08:00

FCPO August Futures contract traded RM42 higher as compare to previous trading sessions to close at RM2661 with a total of 10,188 lots traded in the market. FCPO price continue to trade higher; following tightly on soybean oil electronic trading despite crude oil was traded lower before end of trading sessions.
FCPO price continue to surge higher in attempt to test psychology resistance levels at RM2700 region during the trading sessions. Technically, FCPO price still seen riding on a bull rally provided support levels at RM2633 and RM2600 were not violated in the coming trading sessions while resistance seen at RM2722 and RM2750 regions.

FKLI Daily Commentary for 9th Aug 2010

2010-08-09T00:05:00.001+08:00

FKLI Aug Futures contract closed 3.5 points lower as compare to previous trading session to close at 1363 levels with a total of 2,516 lots traded in the market. FKLI was traded within range during entire trading sessions as regional indices and Dow Jones futures electronic trading were not traded on affirmative direction.
FKLI traded lower after reached resistance levels at 1368 regions before to test support levels at 1363 regions. FKLI currently rested on above the support trend line at 1363 regions while 78.6% Fibonacci support levels seen at 1362 regions. Technically, FKLI would trigger further sell activity provided support levels at 1360.5 and 1355 were violated in the coming trading sessions. Else, FKLI would still consider riding on bullish market where nearest resistance levels seen at 1369 and 1379 regions.

Oil Little Changed Near Three-Month High After Falling on Jobless Claims

2010-08-06T09:42:00.000+08:00

Crude oil was little changed near a three-month high after declining as the number of Americans filing applications for unemployment insurance climbed to the most since April.

Oil dropped for a second day yesterday and equities fell after the Labor Department reported that initial jobless claims increased by 19,000 to 479,000 last week. U.S. retailers reported July sales gains that missed analysts’ estimates as consumers cut spending. An Energy Department report Aug. 4 showed that crude oil supplies in the Midwest surged to a record as nationwide fuel stockpiles rose.

“U.S. markets fell marginally after an unexpected rise in weekly jobless claims and sluggish retail sales data,” said Chris Weston, a Melbourne-based institutional dealer at IG Markets. “Retail sales data out from individual retailers was decidedly sluggish, painting the picture of a cautious consumer.”

Crude oil for September delivery was at $82.08 a barrel, up 7 cents, in electronic trading on the New York Mercantile Exchange at 9:48 a.m. Sydney time. Yesterday, the contract declined 46 cents, or 0.6 percent, to $82.01. On Aug. 3, oil settled at $82.55, the highest level since May 4. Futures are up 4 percent this week and 14 percent higher than a year ago.

Economists forecast U.S. jobless claims would fall to 455,000, according to the median of 43 projections. Estimates ranged from 444,000 to 470,000. The government revised the prior week’s total to 460,000 from a previously reported 457,000.

Crude Supplies

Crude oil inventories in the 15-state U.S. Midwest rose to 97.7 million barrels in the week ended July 30, the highest level recorded since the data started in 1990, the Energy Department report showed.

Gasoline supplies increased 729,000 barrels to 223 million, the highest level since April 30. Stockpiles of distillate fuel, a category that includes heating oil and diesel, rose 2.17 million barrels to 169.7 million, the highest level since the week ended Oct. 16.

The Organization of Petroleum Exporting Countries will reduce shipments this month as refineries close for maintenance, according to tanker-tracker Oil Movements. OPEC will ship 23.33 million barrels a day in the four weeks to Aug. 21, down 1.8 percent from 23.75 million barrels a day in the month ended July 24, the Halifax, England-based consultant said yesterday. The data exclude Ecuador and Angola.

Saudi Arabian Oil Co., the world’s largest state-owned oil company, lowered official selling prices on all crude grades for customers in Asia and Europe for September, and cut prices for light grades to the U.S.

The U.S. reduced its forecast for the 2010 Atlantic hurricane period to 14 to 20 named storms, down from 14 to 23, because of less activity than expected in the first two months of the season.

Brent crude oil for September settlement fell 59 cents, or 0.7 percent, to end the session at $81.61 a barrel on the London-based ICE Futures Europe exchange yesterday.

Oil Trades Above $82 a Third Day as U.S. Economic Reports Boost Optimism

2010-08-05T09:15:00.001+08:00

Crude oil traded above $82 a barrel for a third day after U.S. reports showed service industries and payrolls rose more than forecast in July, signaling fuel demand may increase amid improved prospects for an economic recovery.

Oil remained near a three-month high after gaining 7 percent in the previous five days as an index of U.S. service industries grew to 54.3 in July, according to the Institute for Supply Management. Economists forecast the index of non- manufacturing businesses, which covers about 90 percent of the economy, would fall to 53. Crude stockpiles dropped, while fuel supplies rose last week, the Energy Department said.

“The ISM non-manufacturing index, which is generally seen as a good indicator of activity in the U.S., was up more than expected,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “It’s a good sign for distillate use and oil demand generally. The broad change in fundamentals is positive for oil prices, but it will take a little while to work off the residual stocks.”

Crude oil for September delivery was at $82.46 a barrel, down 1 cent, in electronic trading on the New York Mercantile Exchange at 10:14 a.m. Sydney time. Yesterday, the contract fell 8 cents to settle $82.47. On Aug. 3, oil settled at $82.55, the highest level since May 4. Futures have gained 14.5 percent in the past year.

U.S. companies added 42,000 workers in July, compared with a revised 19,000 in June, according to figures yesterday from ADP Employer Services, a private report based on payrolls. Economists surveyed by Bloomberg News had forecast a gain of 30,000, according to the median estimate.

Equities Gain

U.S. stocks rose, sending the Standard & Poor’s 500 Index to its highest close in more than two months, after the reports. The S&P 500 climbed to 1,127.24 in New York, its highest closing level since May 17. The Dow Jones Industrial Average advanced to its highest point since May 13.

“Wall Street rose overnight on the back of better-than- expected private sector jobs numbers,” said David Taylor, a market analyst at CMC Markets Ltd. in Sydney. “This brought confidence back into the market.”

U.S. oil supplies decreased 2.78 million barrels to 358 million, according to an Energy Department report. They jumped by 7.31 million barrels in the week ended July 23, the biggest increase since March 19. Inventories were forecast to decline 1.65 million barrels in the Bloomberg survey.

Gasoline Supplies

U.S. gasoline supplies increased 729,000 barrels to 223 million in the week ended July 30, the highest level since April 30, the Energy Department reported. They were forecast to drop by 1 million barrels, based on the median estimate of 17 analysts in a Bloomberg News survey.

Gasoline inventories were the highest for the final week in July in Energy Department data going back to 1990. Refinery utilization jumped 0.6 percentage point to 91.2 percent in the week ended July 30.

Brent crude for September settlement traded at $82.28 a barrel, up 8 cents, on the London-based ICE Futures Europe exchange at 10:11 a.m. Sydney time. Yesterday, the contract dropped 48 cents, or 0.6 percent, to $82.20.

Oil Is Near Three-Month High After Breaching $81 for First Time Since May

2010-08-03T10:27:00.000+08:00

Oil traded near a three-month high after breaching $81 a barrel for the first time since May as global equities advanced because of improved prospects for an economic recovery.

Crude rose for a third day yesterday after the Institute for Supply Management’s U.S. manufacturing gauge fell less than forecast and companies including HSBC Holdings Plc reported better-than-expected earnings. Asian stocks rose. Oil supplies probably fell by 1.5 million barrels last week, a Bloomberg News survey showed before an Energy Department report tomorrow.

“We saw some robust earnings coming out of several heavyweight European banks, and the manufacturing data out of the U.S. held above expectations,” said David Taylor, a market analyst at CMC Markets Ltd. in Sydney. “Last night saw a string of better-than-expected numbers lift confidence and encourage investors back into the market.”

Crude oil for September delivery was at $81.51 a barrel, up 17 cents, in electronic trading on the New York Mercantile Exchange at 8:57 a.m. Singapore time. Yesterday, the contract rose $2.39, or 3 percent, to $81.34, the highest since May 4. Futures climbed 4.4 percent in July, the biggest monthly gain since March. Prices are up 2.7 percent this year.

The ISM’s manufacturing gauge fell to 55.5 in July from 56.2 a month earlier, the Tempe, Arizona-based group said. Economists had forecast the measure would drop to 54.5, according to the median of 74 projections in a Bloomberg News survey. Estimates ranged from 52.5 to 56.

Equities Advance

The Standard & Poor’s 500 Index increased 2.2 percent in New York and the Dow Jones Industrial Average rose 2 percent. The MSCI World Index, a gauge of equities in 24 developed nations, climbed 2.4 percent to the highest level since May 13.

The MSCI Asia Pacific Index gained 0.8 percent to 121.68 as of 9:38 a.m. in Tokyo, set for its highest close since May 5.

The U.S. has plans for “military options” it can use to stop Iran, the second-largest oil producer in the Organization of Petroleum Exporting Countries, from developing nuclear weapons, the chairman of the Joint Chiefs of Staff said on NBC’s “Meet the Press.”

A tropical depression formed yesterday in the middle of the Atlantic Ocean, the National Hurricane Center said. The system has maximum sustained winds of 35 miles (56 kilometers) per hour, 4 mph less than the threshold to be declared a tropical storm and given a name, according to a bulletin released at about 11 a.m. Miami time.

August and September are the most active months of the Atlantic hurricane season. Storms can threaten states along the U.S. Gulf of Mexico which account for 31 percent of U.S. oil output and 43 percent of the country’s refining capacity.

Brent crude for September settlement rose as much as 23 cents, or 0.3 percent, to $81.05 a barrel on the London-based ICE Futures Europe exchange, and was at $81.01 at 9:04 a.m. Singapore time. Yesterday, the contract gained $2.64, or 3.4 percent, to $80.82.

FCPO Daily Commentary for 3th Aug 2010

2010-08-02T18:43:00.000+08:00

FCPO 3rd month Oct futures contract traded RM53 higher to close at RM2570 levels as compare to previous trading sessions with a total of 9,462 lots traded in the market. FCPO price traded higher during entire trading session as soybean oil and crude oil both were traded higher during overnight settlement and electronic trading sessions.
FCPO price penetrate previous resistance levels at RM2539 regions and continue to trade higher to resistance levels at RM2578; 78.6% Fibonacci resistance levels, in the hourly price chart. Technically, FCPO price seems riding on a bull rally with resistance levels seen at RM2594 and RM2625 regions. FCPO price must penetrate the resistance levels in order further affirm on FCPO bull trend while support levels at RM2550 and RM2498 must not be violated in the coming trading sessions.

FKLI Daily Commentary for 3rd Aug 2010

2010-08-02T18:42:00.002+08:00

FKLI July Futures contract traded 13 points higher to close at 1367 levels as compare to previous trading session to with a total of 4,518 lots traded in the market. FKLI opened higher upon open for trading sessions as Dow Jones futures electronic trading was traded higher while most of the regional indices were traded higher, hence indirectly fueled our market trading north.
FKLI basically traded within rectangular formation during intraday trading with support seen at 1364 levels while resistance levels were seen at 1368 regions. Technically, FKLI seems holding well during trading sessions with support seen at 1354 and 1350 regions. FKLI would encounter some resistance levels at 1371 and 1379 regions based chart pattern of previous triangle formation where objective price seen at 1371 regions while 1379 was 78.6% Fibonacci resistance levels in the daily price chart.

Oil Trades Near One-Week Low After Surprise Gain in U.S. Supplies of Crude

2010-07-29T11:14:00.001+08:00

Crude oil traded near a one-week low in New York on an unexpected increase in U.S. supplies as imports jumped to the highest level in almost four years.

Oil dropped 0.7 percent yesterday after an Energy Department report showed crude inventories climbed 7.31 million barrels to 360.8 million in the week ended July 23, the biggest gain since March 19. Analysts in a Bloomberg News survey had forecast stockpiles would tumble to a four-month low. Imports climbed to the highest level since August 2006.

“Sentiment is very mixed,” Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney, said by telephone. “The oil market looks to be nicely controlled within a range. The fundamental story is not clear. We saw inventory builds at a time when we didn’t expect them to rise.”

Crude oil for September delivery was at $76.95 a barrel, down 4 cents, in electronic trading on the New York Mercantile Exchange at 9:37 a.m. Singapore time. Yesterday, the contract fell 51 cents to $76.99. Futures have dropped 3.1 percent so far this year.

Imports rose 1.18 million barrels, or 12 percent, to 11.2 million, the highest level since the week ended Aug. 25, 2006. Crude oil supplies were forecast to decline 1.73 million barrels, according to the 16 analysts in the Bloomberg survey.

“Any increase in inventories tends to put pressure on the price of oil to pull back,” said Mike Sander, an investment adviser at Sander Capital Advisors in Seattle. “The price of oil is at a stand-still for now.”

Durable Goods

Oil prices also fell yesterday after total orders for durable goods, those meant to last at least three years, unexpectedly dropped 1 percent amid a slump in demand for aircraft. The Commerce Department report deepened concern that the economic recovery may be flagging and limiting fuel demand.

Economists forecast total durable goods orders would climb 1 percent, according to the median of 76 projections in a Bloomberg News survey. The Commerce Department revised May’s decline to 0.8 percent from the previously reported 0.6 percent.

The Federal Reserve said yesterday that growth slowed in some areas over the past two months, dragged down by commercial real estate and the expiration of a tax credit for homebuyers. In its Beige Book, the Fed said “activity has continued to increase, on balance.” Two of the 12 districts reported slower growth and two said the economy “held steady.”

Brent crude for September settlement traded at $75.86 a barrel, down 20 cents, on the London-based ICE Futures Europe exchange at 9:11 a.m. Singapore time. Yesterday, the contract fell 7 cents, or 0.1 percent, to settle at $76.06.

Gold May Climb in Asia as Prices Near Three-Month Low Spur Buyer Demand

2010-07-29T11:13:00.001+08:00

Gold may advance for a second day on speculation the metal’s prices near a three-month low will help shore up demand.

Gold for immediate delivery traded little changed at $1,165.15 an ounce at 8:38 a.m. in Singapore. December-delivery futures rose 0.5 percent.

“The correction phase of gold is about to be completed and the market will see some period of consolidation near this or a slightly lower level until next week,” said Wallace Ng, executive director with ABN Amro NV in Hong Kong.

Bullion, which touched a record $1,265.30 on June 21, has since slumped 8 percent and fell as low as $1,157.03 this week, the lowest since April 27, as a rally in global equities curbed demand for bullion. Asian stocks have climbed 5.7 percent in July, snapping a two-month decline, while gold fell 6.2 percent, the first monthly decline since March, as investors reduced holdings of safer assets in search of higher returns.

Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, fell for a third day yesterday. Assets under management have dropped 2.9 percent this month.

Investors are shifting their money into riskier asset classes, Eugen Weinberg, Frankfurt-based head of commodity with Commerzbank AG, wrote in a report. Still, “in the mid to long term the physical buying interest is expected to pick upon the currently low price level and thus prevent a clear slide of the gold price.”

Physical demand for gold from India, China and the wider Asian region was “very visible” as gold prices declined this week, UBS AG analyst Edel Tully said yesterday. Still, physical demand isn’t sufficient to prop up the price and the short-term outlook was “increasingly murky,” she said.

“Few investors are likely to add to their long gold exposure down here, afraid of catching a falling knife, until some sense of stability is restored to price direction,” London-based Tully said in a report.

Silver increased 0.5 percent to $17.555 an ounce, platinum added 0.2 percent to $1,542.50 an ounce and palladium advanced 0.4 percent to $471.25 an ounce.

Oil Falls a Second Day After U.S. Supplies Gain, Consumer Confidence Drops

2010-07-28T09:32:00.000+08:00

Oil fell for a second day in New York after an industry report showed U.S. crude inventories rose and the Conference Board said confidence among the nation’s consumers fell, signaling growth and energy demand may falter.

Oil dropped the most in more than three weeks yesterday as the confidence index declined to the lowest level in five months. The gauge was at 50.4 from a revised 54.3 in June, the New York- based private research group showed. It was forecast to drop to 51, according to a Bloomberg News survey. Crude supplies rose by 3.08 million barrels, the American Petroleum Institute said.

“Sentiment really hasn’t improved,” Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne, said by telephone. “There was a sell-off in the crude market because of a fall in U.S. consumer confidence. The fundamentals are still weak.”

Crude oil for September delivery dropped as much as 62 cents, or 0.8 percent, to $76.88 a barrel in electronic trading on the New York Mercantile Exchange. It was at $77.13 at 10:15 a.m. Sydney time. Yesterday, the contract fell $1.48, or 1.9 percent, to $77.50. Futures have declined 3 percent since the start of the year.

U.S. crude oil inventories rose to 356.3 million, the Petroleum Institute said yesterday. Gasoline stockpiles climbed 877,000 barrels to 222.3 million, the report showed.

Government Report

A government report today may show U.S. oil inventories dropped to a four-month low, according to a Bloomberg News survey. U.S. stockpiles probably fell 1.73 million barrels in the seven days ended July 23 from 353.5 million the week earlier, according to analysts surveyed by Bloomberg.

The Petroleum Institute collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey.

Gasoline demand rose 1.7 percent last week, as U.S. motorists bought an average 9.51 million barrels a day of the motor fuel in the week ended July 23, according to MasterCard Inc.’s SpendingPulse report yesterday. The gain was the second in a row and the sixth in seven weeks.

Oil touched $79.69 a barrel in intraday trading yesterday, the highest level since May 6, as global equities gained before the consumer confidence report.

Estimates for consumer confidence ranged from 46 to 55.5 in the Bloomberg survey of 73 economists after a previously reported 52.9 reading in June. The Conference Board measure averaged 98 during the expansion that ended in December 2007.

Brent crude for September settlement fell 28 cents, or 0.4 percent, to $75.85 a barrel on London’s ICE Futures Europe exchange at 10:25 a.m. Sydney time. Yesterday the contract fell $1.37, or 1.8 percent, to settle at $76.13.

FCPO Daily Commentary for 28th July 2010

2010-07-28T09:11:00.000+08:00

FCPO 3rd month Oct futures contract traded RM12 higher to close at RM2485 levels as compare to previous trading sessions with a total of 10,381 lots traded in the market. FCPO price traded higher after long consolidation around support levels despite soybean oil and crude oil were traded in contradicting direction during electronic trading sessions.
FCPO price found temporary support at RM2434; 38.2% Fibonacci support regions, before begin surge higher and settled at RM2485; 50% Fibonacci resistance levels. Technically, FCPO price currently seems crucial in determining if FCPO would further undergo correction phase or resume bull rally in the coming trading sessions where critical resistance levels were seen RM2497 and RM2520 regions while support levels remain at RM2402 and RM2371; both are 50% and 61.8% Fibonacci support levels.

FKLI Daily Commentary for 28th July 2010

2010-07-28T09:10:00.001+08:00

FKLI July Futures contract traded 0.5 points higher to close at 1355.5 levels as compare to previous trading session to with a total of 11,143 lots traded in the market. FKLI opened higher for trading but only manage to settle 0.5 point higher due to massive profit taking activities despite regional indices were traded higher during trading sessions.
FKLI fall after attempt to penetrate resistance levels at 1361 regions failed in the morning trading sessions before start to engage to find support at 1351 regions. However, FKLI manage to recover some losing ground towards 1357 region, 61.8% Fibonacci resistance levels regions. Technically, FKLI seems manage to rebound 61.8% Fibonacci figure after manage to penetrate 0.5 point below support levels at 1351. FKLI would expect to trade lower in the coming trading sessions provided resistance levels at 1357 and 1363 were not violated in the coming trading sessions. Support levels were seen at 1343.5 and 1338 regions.

Crude Oil Trades Near $79 on Weakening Storm, U.S. Economic Growth Concern

2010-07-26T09:48:00.001+08:00

Crude oil traded near $79 a barrel in New York after dropping from an 11-week high as Tropical Storm Bonnie weakened and on concern that the pace of fuel demand recovery in the U.S. may falter.

Oil declined as Bonnie degenerated to a “disorganized area of low pressure.” Prices also fell amid forecasts that the U.S. economy expanded at a slower pace in the second quarter. Gross domestic product rose at a 2.5 percent annual pace after increasing at a 2.7 percent rate in the first three months of the year, according to economists surveyed by Bloomberg News before a July 30 Commerce Department report.

“It’s still a case of U.S. demand not being particularly strong and that’s a reflection really of a pretty tepid U.S. economic recovery,” said Toby Hassall, a commodity analyst at CWA Global Markets Pty in Sydney. “The market also seems to have removed some of that weather premium that had been built in response to the threat posed with Bonnie.”

Crude oil for September delivery traded at $79.03 a barrel, up 5 cents, on the New York Mercantile Exchange at 9:35 a.m. Singapore time. The contract fell 32 cents, or 0.4 percent, to $78.98 on July 23 after reaching $79.30 on July 22, the highest close since May 5. Futures are up 16 percent from a year ago.

Storms are closely watched in the Gulf, partly because they may topple oil production platforms and rupture pipelines. The Gulf accounts for about 31 percent of U.S. oil output and 10 percent of its natural-gas production, according to the Energy Department. The coast along Louisiana and Texas is home to 42 percent of U.S. refining capacity.

Brent crude for September settlement traded at $77.69 a barrel, up 24 cents, on the London-based ICE Futures Europe exchange at 9:35 a.m. Singapore time. The contract dropped 37 cents, or 0.5 percent, to $77.45 on July 23.

FKLI Daily Commentary for 22nd July 2010

2010-07-22T08:58:00.004+08:00

FKLI July Futures contract traded 7.5 points higher to close at 1344.5 levels as compare to previous trading session to with a total of 4,679 lots traded in the market. FKLI was traded wild yesterday as it opened higher before plunge lower despite most of the regional indices were traded higher but manage to recover more profit before end of trading sessions.
FKLI challenge next resistance levels at 1347.5; 78.6% and 100% Fibonacci resistance levels, before plunge lower towards support levels at 1340 regions and rebound 78.6% Fibonacci figure at 1345.5 before end of trading sessions. Technically, FKLI seems possible to temporary topped provided resistance levels at 1352.5 and 1360 were not violated in the coming trading sessions while support levels were seen at 1337 and 1331 regions.

FCPO Daily Commentary for 22nd July 2010

2010-07-22T08:58:00.003+08:00

FCPO 3rd month Oct futures contract rose RM35 higher to close at RM2459 levels as compare to previous trading sessions with a total of 9,827 lots traded in the market. FCPO price traded higher during trading sessions as soybean oil and crude oil were traded higher during electronic trading sessions.
FCPO price manage to penetrate previous higher at RM2461 to reach RM2468; 100% Fibonacci resistance levels, before settled at RM2459 before of trading sessions. Technically, FCPO price temporary holding well above support levels at RM2435 and RM2424 regions. However, its crucial that FCPO price must not trading below support level in order not to trigger massive liquidation in the market. Resistance levels were seen at RM2462 and RM2514; both are 61.8% and 78.6% Fibonacci resistance levels.

FCPO Daily Commentary for 21st July 2010

2010-07-21T09:26:00.001+08:00

FCPO 3rd month Oct futures contract traded RM30 lower to close at RM2424 levels as compare to previous trading sessions with a total of 11,235 lots traded in the market. FCPO price plunge lower after long consolidation on higher side despite crude oil and soybean oil were still trading higher during trading sessions.
FCPO price attempt to penetrate previous high at RM2461 regions failed despite a series of attempts to penetrate resistance levels at RM2455; 78.6% Fibonacci resistance levels before FCPO price plunge lower to find support around RM2420 regions. Technically, FCPO price seems retrace lower after 7-day consecutive rally towards higher trading territory where resistance levels seen at RM2462 and RM2514; 61.8% and 78.6% Fibonacci resistance levels while support levels seen at RM2417 and RM2387 regions.

FKLI Daily Commentary for 21st July 2010

2010-07-21T09:25:00.002+08:00

FKLI July Futures contract traded 3 points lower to close at 1337 levels as compare to previous trading session to with a total of 4,733 lots traded in the market. FKLI fall lower after manage to challenge higher territory in the early trading sessions due to firm regional indices trading.
FKLI tested resistance levels at 1344.5; 78.6% Fibonacci resistance levels, before traded lower to find support at 1337, 61.8% Fibonacci support levels in the hourly price chart. Technically, FKLI was expected to have 1 more thrust trading higher where next nearest resistance levels were seen at 1347.5 and 1352.5. Support levels were seen at 1337 and 1332.5 regions.

FCPO Daily Commentary for 20th July 2010

2010-07-20T08:58:00.000+08:00

FCPO 3rd month Oct futures contract traded RM6 higher to close at RM2455 levels as compare to previous trading sessions with a total of 7,771 lots traded in the market. FCPO price consolidate during the entire trading sessions without much influence by soybean oil and crude oil electronic trading during the trading sessions.
FCPO price traded lower and found support levels at RM2430 regions before manage to rebound towards RM2455 regions; 78.6% Fibonacci resistance levels. Technically, FCPO price yet to penetrate resistance levels at RM2462 regions; 61.8% Fibonacci resistance levels, in the daily price chart. Failure to trade above resistance levels at RM2462 and RM2514; both are 61.8% and 78.6% Fibonacci resistance levels shall suggest FCPO price trading fall back into correction phase while support levels should be guarded around RM2430 and RM2400 regions.

FKLI Daily Commentary for 20th July 2010

2010-07-20T08:56:00.001+08:00

FKLI July Futures contract fall marginally 0.5 points lower to close at 1340 levels as compare to previous trading session to with a total of 5,102 lots traded in the market. FKLI recovered from losses after opened lower for trading but manage to recover before end of trading sessions as Europe indices positive signs to trade higher.
FKLI traded to trade higher during trading sessions towards 1340; 78.6% Fibonacci resistance levels manage to penetrate previous low levels at 1333 regions. Technically, FKLI seems still within correction phase although these corrections count seems misleading by many contracting element. However, FKLI resistance levels still remain at 1347 and 1360 regions while support levels remain at 1325 and 1315 regions.

Gold Advances in New York on Demand for Alternative to Weakening Dollar

2010-07-16T09:15:00.001+08:00

Jul 15, 2010 - Gold futures rose on speculation that the dollar will weaken further, boosting demand for the precious metal as an alternative asset.

The dollar slid as much as 1.1 percent against a basket of six major currencies and touched a two-month low against the euro. Gold historically has moved inversely to the dollar. The metal reached a record $1,266.50 an ounce on June 21 and rallied to all-time highs in euros, British sterling and Swiss francs as investors sought a haven during Europe’s fiscal crisis.

“Gold is following the euro higher,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “Gold’s historical relationship to the dollar is coming back.”

Gold futures for August delivery increased $1.30, or 0.1 percent, to $1,208.30 on the Comex. The price has gained 10 percent this year.

The euro rose above $1.29 for the first time since May as demand for Spanish government bonds eased concerns that the nation wouldn’t be able to fund its deficit.

Investors who had sold euros and bought dollars and gold as havens during the height of Europe’s debt worries may now be reversing course, analysts said.

‘Love Triangle’

“The love triangle between gold, the dollar, and the euro is playing out,” said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago. “A lot of what you’re seeing is the unwinding of those euro positions. Gold still looks good to hold and won’t slide too much.”

The Federal Reserve Bank of New York’s general economic index and the Philadelphia Fed’s gauge both fell in July to 5.1, reflecting the slowest pace of manufacturing expansion this year. Readings greater than zero signal growth.

The Fed has kept its benchmark interest rate at zero to 0.25 percent since December 2008 to stimulate growth. The European Central Bank’s main rate is 1 percent.

“We remain bullish on gold, although we may soon begin to focus upon gold in dollar terms rather than solely seeing gold in terms of the euro, sterling or even the Swiss franc,” said Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter.

Silver futures for September delivery rose 7.2 cents, or 0.4 percent, to $18.362 an ounce on the Comex.

Platinum futures for October delivery advanced $13.10, or 0.9 percent, to $1,533.70 an ounce on the New York Mercantile Exchange. Palladium futures for September delivery gained $1.40, or 0.3 percent, to $467.20 an ounce, also on the Nymex.

Crude Oil Falls After Reports Raise Concern U.S. Economic Recovery to Slow

2010-07-16T09:14:00.000+08:00

Jul 15, 2010 - Crude oil tumbled after government reports bolstered concern that the U.S. economic recovery will slow, reducing fuel consumption.

Oil dipped 0.6 percent after the Federal Reserve said that U.S. factory output fell 0.4 percent in June, the biggest decline in a year. Other reports showed factories pulled back in the New York and Philadelphia regions in July. The major stock indexes dropped at least 1.2 percent before rebounding after oil settled to close little changed.

“There’s nothing good in today’s economic reports that you can point to,” said Michael Fitzpatrick, vice president of energy at MF Global in New York. “Oil is overpriced given where the economy is.”

Crude for August delivery dropped 42 cents to settle at $76.62 a barrel on the New York Mercantile Exchange. The contract dropped as low as $75.33 during the session. The price is up 25 percent from a year ago.

The Dow Jones Industrial Average declined 7.41 points to 10,359.31 at 4:01 p.m. in New York, the first drop in eight days. The Standard & Poor’s 500 Index gained 0.1 percent to 1,096.48 after trading below the previous close most of the day.

Oil in New York has traded in a range of $8.29 for the past month, from $71.09 to $79.38 a barrel. The August contract’s discount to the December contract is $1.83, down from $3.21 on June 18.

“Until we see solid economic growth, prices will stay in this range,” said Chip Hodge, who oversees a $9 billion natural-resource bond portfolio as senior managing director at MFC Global Investment Management in Boston. “The forward curve has come down a lot, which is a sign that people are less optimistic about the economy and demand growth.”

New York Index

The Federal Reserve Bank of New York reported that showed its general economic index fell to 5.1 in July from 19.6 the prior month. The Federal Reserve Bank of Philadelphia’s general economic index declined to 5.1 this month, the lowest level since August 2009, from 8 in June.

Economists monitor the New York and Philadelphia Fed factory reports for clues about the Institute for Supply Management figures on U.S. manufacturing during the month. The July ISM data will be released Aug. 2.

China’s economic growth rate eased to 10.3 percent in the second quarter. The gain in gross domestic product was less than an 11.9 percent increase in January-March from a year earlier. Industrial output rose 13.7 percent, less than all but one of 27 forecasts in a Bloomberg News survey.

“Their economy is clearly decelerating, which has to worry investors,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis.

The U.S. and China, the world’s biggest energy consuming countries, accounted for 32 percent of global oil demand in 2009, according to BP Plc, which publishes its BP Statistical Review of World Energy each June.

OPEC Shipments

The Organization of Petroleum Exporting Countries, supplier of about 40 percent of the world’s oil, will ship 23.6 million barrels a day in the four weeks to July 31, compared with 23.58 million in the month ended July 3, according to tanker tracker Oil Movements. The data exclude Ecuador and Angola.

OPEC’s compliance with production targets slipped in June on higher production from Saudi Arabia and Nigeria. The 11 members bound by quotas increased output by 61,700 barrels a day to 26.86 million, implying compliance of 52 percent, according to the group’s Monthly Oil Market Report today. OPEC completed 54 percent of its promised cuts in May, the data show.

An Energy Department report yesterday showed that stockpiles of gasoline and distillate fuel, a category that includes heating oil and diesel, increased last week as crude oil supplies dropped. Both crude and fuel stockpiles were above the five-year average for the period.

‘A Lot of Crude’

“We still have a lot of crude on hand,” said Kyle Cooper, a managing director at energy consultant IAF Advisors in Houston. “What we need are products such as gasoline, and those supplies increased.”

Gasoline for August delivery slipped 0.58 cent, or 0.3 percent, to settle at $2.0607 a gallon in New York. Heating oil for August delivery declined 1.78 cents, or 0.9 percent, to end the session at $2.0183 a gallon.

Brent crude for August settlement fell 58 cents, or 0.8 percent, to end the session at $76.19 a barrel on the London- based ICE Futures Europe exchange. The August contract expired today. The more actively traded September contract dropped 57 cents, or 0.7 percent, to $76.09.

Oil volume on the Nymex was 588,338 contracts as of 3:09 p.m. in electronic trading in New York. Volume totaled 683,617 contracts yesterday, 8.2 percent below the average of the past three months. Open interest was 1.28 million contracts.

FCPO Daily Commentary for 16th July 2010

2010-07-16T08:54:00.002+08:00

FCPO 3rd month Sep futures contract traded RM58 higher to close at RM2439 levels as compare to previous trading sessions with a total of 15,889 lots traded in the market. FCPO price surge higher during trading session as soybean oil and crude oil electronic trading were trading higher while strong export figure was released during trading sessions.
FCPO price opened almost unchanged but soon trading higher once support levels at RM2380 region holding well during trading sessions before price surge higher towards resistance levels at RM2455 regions. Technically, FCPO price seems riding on bullish sentiment during trading were next nearest resistance levels seen at RM2460 and RM2500 regions. However, FCPO price would seen temporary overbought during trading sessions while nearest support level seen at RM2400 and RM2370 regions.

FKLI Daily Commentary for 16th July 2010

2010-07-16T08:53:00.000+08:00

FKLI July Futures contract fall 6.5 points lower to close at 1337 levels as compare to previous trading session to with a total of 6,928 lots traded in the market. FKLI plunge lower during trading sessions as regional indices especially Hang Seng Index and ShangHai Index plunge lower during trading sessions.
FKLI traded lower during trading sessions after previous support levels at 1340 fails against selling activity during trading session and found support levels at 1333; 61.8% Fibonacci support levels before begin to rebound towards 1338; 50% Fibonacci resistance levels. Technically, FKLI still favor towards correction phase provided resistance levels at 1343 and 1352.5 were not violated in the coming trading sessions. Support levels were seen at 1327 and 1322 regions. Failure to hold trading price above support levels shall indices further selling pressure to take in place.

Oil Falls After Federal Reserve’s Outlook, Decline in Equities

2010-07-15T10:01:00.002+08:00

July 15 (Bloomberg) -- Crude oil declined after the Federal Reserve’s assessment that the economic outlook has “softened” added to concerns a recovery in fuel demand may falter in the U.S., the biggest energy-consuming nation.

Oil fell after most U.S. equities dropped, halting a six- day rally, as a drop in retail sales and minutes from the Fed’s last meeting showed policy makers saw no need to boost economic stimulus even as they trimmed growth forecasts. U.S. crude supplies declined, while gasoline inventories climbed 1.6 million barrels last week, an Energy Department report showed.

“There are a growing number of indicators that point to a slowing U.S. economy,” said David Land, chief market analyst at CMC Markets Ltd. in Sydney. “The Federal Reserve’s revised assessment of the economy and weaker-than-expected retail sales figures put a dampener on things.”

Crude oil for August delivery dropped as much as 48 cents, or 0.6 percent, to $76.56 a barrel in electronic trading on the New York Mercantile Exchange and was at $76.62 at 9:57 a.m. Sydney time. Yesterday, the contract slipped 11 cents to settle at $77.04 after reaching $78.15, the highest intraday price since June 29. Futures have declined 3.5 percent since the start of the year.

Fuel demand tumbled 4 percent to 18.8 million barrels a day, the lowest level since April 23, the Energy Department report showed. It was the biggest one-week decline since March.

Sales at U.S. retailers dropped in June for a second month. Purchases decreased 0.5 percent, more than projected, after declining 1.1 percent in May, Commerce Department figures showed yesterday in Washington.

‘Softening’ Outlook

“The economic outlook had softened somewhat and a number of members saw the risks to the outlook as having shifted to the downside,” minutes released yesterday in Washington of Federal Reserve policy makers’ June meeting showed. “The changes to the outlook were viewed as relatively modest and as not warranting policy accommodation beyond that already in place.”

U.S. crude-oil supplies fell 5.06 million barrels to 353.1 million, the Energy Department said. Stockpiles were forecast to slip 1.5 million barrels, according to a Bloomberg News analyst survey. Refineries operated at 90.5 percent of capacity, the highest level since January 2008.

Inventories have dropped 12 million barrels in three weeks to the lowest level since March 19. It’s the longest string of declines since December.

Stockpiles of distillate fuel, a category that includes heating oil and diesel, increased 2.94 million barrels to 162.6 million, the department said. Inventories were forecast to rise by 1 million barrels.

Brent crude for August settlement increased 12 cents to end the session at $76.77 a barrel on the London-based ICE Futures Europe exchange yesterday. The contract expires today. The more- active September contract slipped 7 cents to $76.66 a barrel.

Gold in N.Y. Retreats After Gaining the Most in Three Weeks

2010-07-15T10:01:00.001+08:00

July 14 (Bloomberg) -- Gold fell in New York on sales by some investors after prices gained the most in three weeks.

The metal yesterday climbed 1.2 percent, the most since mid-June. Investment in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, was unchanged yesterday. Gold has increased 11 percent this year.

“Gold is at the top end of its recent trading range and faces technical resistance,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “There is a bit of profit taking.”

Gold futures for August delivery fell $6.50, or 0.5 percent, to $1,207 an ounce on the Comex in New York.

The metal has failed to settle above $1,215 since June 30, an area of resistance, McGhee said. Earlier today, the price touched $1,218.20 before retreating.

A drop below $1,200 is an opportunity to buy, said Tom Pawlicki, an analyst at MF Global Holdings Ltd. in Chicago.

“The $1,200 level seems most favorable for entry,” Pawlicki said. “Low interest rates will continue to suggest that the cost of carry for gold is low, and will allow the metal to compete with Treasuries for investors that need a store of value.”

The Federal Reserve has kept the benchmark U.S. interest rate between zero percent and 0.25 percent since December 2008 to revive the economy.

Gold reached a record $1,266.50 on June 21 and also rallied to all-time highs in euros, U.K. sterling and Swiss francs last month amid Europe’s credit crisis.

Silver futures for September delivery rose 3.3 cents, or 0.2 percent, to $18.29 an ounce on the Comex.

Platinum futures for October delivery declined $14.80, or 1 percent, to $1,520.60 an ounce on the New York Mercantile Exchange.

Palladium futures for September delivery lost $3.35, or 0.7 percent, to $465.80 an ounce, also on Nymex.

FCPO Daily Commentary for 15th July 2010

2010-07-15T09:37:00.002+08:00

FCPO 3rd month Sep futures contract traded RM28 higher to close at RM2381 levels as compare to previous trading sessions with a total of 6,063 lots traded in the market. FCPO price was traded higher throughout entire trading session as crude oil and soybean oil were traded higher during overnight and electronic trading.
FCPO price continue trading higher during trading sessions and challenge next resistance levels at 2380 regions; 78.6% Fibonacci resistance levels. Technically, FCPO price possible undergoing larger rebound wave count provided resistance levels at RM2380 and RM2410 regions were not violated in the coming trading sessions. However, FCPO price current nearest support levels seen at RM2356 and RM2325 regions. Failure to FCPO trading price above the support level shall indicates further selling activity.

FKLI Daily Commentary for 15th July 2010

2010-07-15T09:37:00.001+08:00

FKLI July Futures contract surge 4.5 points higher to close at 1343.5 levels as compare to previous trading session to with a total of 7,937 lots traded in the market. FKLI opened higher but only trading within range throughout entire trading sessions as regional market and Dow Jones futures electronic trading were traded within range after huge movement upon open for trading.
FKLI surge towards north at 1347.5 but consolidate during trading sessions within range from 1346 to 1341 region throughout entire trading sessions. Technically, FKLI yet to show any sign of reversal where support levels at 1328 and 1324 must not be violated in the coming trading sessions in order for uptrend to remain intact. However, FKLI would encounter some selling pressure around resistance levels at 1352.5 and 1360 regions.

FCPO Daily Commentary for 14th July 2010

2010-07-14T09:02:00.003+08:00

FCPO 3rd month Sep futures contract traded RM13 higher to close at RM2353 levels as compare to previous trading sessions with a total of 7,124 lots traded in the market. FCPO traded higher towards entire trading sessions as soybean oil and crude oil electronic trading were traded higher during trading sessions.
FCPO price traded higher during trading sessions in attempt to challenge resistance levels at RM2352; 78.6% Fibonacci resistance levels after found support at RM2325 regions. Technically, FCPO trading is very close to affirm reverse uptrend once resistance levels at RM2366 and RM2375 failed to resistance traded price trading below the resistance levels. However, FCPO price would continue to trade into correction phase provided support levels at RM2525 and RM2510 regions.

FKLI Daily Commentary for 14th July 2010

2010-07-14T09:01:00.002+08:00

FKLI July Futures contract surge 10.5 points higher to close at 1339 levels as compare to previous trading session to with a total of 7,358 lots traded in the market. FKLI traded higher in the 2nd trading sessions as regional indices and Dow Jones futures electronic trading were traded higher during trading sessions after found affirmative support levels in the morning sessions.
FKLI break down lower from the symmetric triangle in the hourly price chart to meet support at 1324; 61.8% Fibonacci support levels, in the hourly price chart before surge up higher by end of trading sessions. Technically FKLI seems aggressive in attempt to surge higher to challenge resistance levels at 1342 and 1352.5 regions. However, FKLI crucial support would be seen at 1324 and 1315 regions.

Oil Trades Near Two-Week High as U.S. Equities Advance on Alcoa

2010-07-14T08:55:00.000+08:00

July 14 (Bloomberg) -- Crude oil traded near a two-week high in New York after U.S. stocks advanced and on optimism fuel demand will increase amid improved prospects for an economic recovery in the world’s biggest energy consumer.

Oil rose 2.9 percent yesterday as U.S. equities gained for the sixth straight day after Alcoa Inc.’s earnings topped analysts’ estimates. Prices also rose as the International Energy Agency forecast oil demand will grow in 2011. U.S. crude inventories probably fell last week, according to a Bloomberg News survey before a government report today.

“Sentiment has turned positive and commodities and equities are benefiting from that,” said Toby Hassall, a commodity analyst at CWA Global Markets Pty in Sydney. “It’s the start of the quarterly earnings season, which has kicked off on a positive note with Alcoa.”

Crude oil for August delivery traded at $77.26 a barrel, up 11 cents, in electronic trading on the New York Mercantile Exchange at 9:23 a.m. Sydney time. Yesterday, the contract rose $2.20 to $77.15, the highest level since June 28. Futures have gained 2.7 percent since the start of the year.

Global oil demand will increase 1.6 percent in 2011 to average 87.8 million barrels a day, the Paris-based IEA said in its first forecast for next year. It left its estimate for 2010 unchanged with a demand growth rate of 2.1 percent to an average 87.8 million barrels a day in a report released yesterday.

U.S. gasoline demand rose 2.1 percent from June 30 to July 6, the Tuesday after the July Fourth holiday, from a similar period last year, according to MasterCard Inc.’s SpendingPulse report yesterday.

Crude Supplies

U.S. crude stockpiles increased 1.74 million barrels to 353.5 million last week, according to a report from the American Petroleum Institute. The Energy Department will probably report that inventories fell 1.5 million barrels, a Bloomberg News survey of analysts shows.

The Petroleum Institute collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey.

Profits for S&P 500 companies are projected to have increased 34 percent in the second quarter, according to analysts’ estimates compiled by Bloomberg. Alcoa, the largest aluminum producer, reported net income of $136 million, or 13 cents a share, exceeding the 11-cent average estimate of 17 analysts surveyed by Bloomberg.

Brent crude for August settlement gained $2.28, or 3.1 percent, to $76.65 a barrel on the London-based ICE Futures Europe exchange yesterday.

Soybeans Rise on Bets Rain to Reduce U.S. Midwest-Crop Yields

2010-07-14T08:54:00.000+08:00

July 13 (Bloomberg) -- Soybeans rose to an eight-week high on speculation that heavy Midwest rainfall during the past six weeks will reduce yields in the U.S., the world’s largest grower and exporter.

About 65 percent of the crop was rated good or excellent on July 11, down from 66 percent a year earlier and 75 percent in the week ended June 6, the U.S. Department of Agriculture said yesterday. Conditions deteriorated in Iowa, Nebraska, Missouri, Kansas and Ohio. Those states accounted for 44 percent of the 2009 record harvest, USDA data show.

“Soybean crop conditions fell below last year, and that is a positive factor” for prices, said Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago. “The crop is getting smaller.”

Soybean futures for November delivery rose 3.5 cents, or 0.4 percent, to $9.545 a bushel on the Chicago Board of Trade. Earlier, the price reached $9.625, the highest level for the most-active contract since May 14. The oilseed has gained 5.8 percent this month.

U.S. inventories totaled 571 million bushels as of June 1, down 4.2 percent from a year earlier, the government said on June 30. That marked the lowest level since 2004. Reserves will fall to 175 million bushels, 5.4 percent less than June’s forecast, the USDA said last week.

“Soybean supplies are tight,” Grow said. “There is little margin for crop problems this year.”

Soybeans are the second-biggest U.S. crop, valued at $31.8 billion in 2008, government figures show. Corn is the biggest at $48.6 billion.

Crude Oil Trades Near a Three-Day Low After Dollar Strengthens

2010-07-13T09:14:00.000+08:00

July 13 (Bloomberg) -- Crude oil traded near a three-day low in New York after the dollar strengthened against the euro, curbing the appeal of commodities as an alternative investment.

Oil fell 1.5 percent yesterday as the dollar advanced amid speculation that tests to demonstrate the resilience of Europe’s banking system will fail to assure investors that the region is recovering from its sovereign-debt crisis.

“The wind has come out of the market’s sails,” said Christopher Bellew, senior broker at Bache Commodities Ltd. “Last week we got to the top of the recent trading range but failed to break through it, so without a boost from the equity market, oil is likely to sag a bit more.”

Crude for August delivery traded at $75.07 a barrel, up 12 cents, in electronic trading on the New York Mercantile Exchange at 8:31 a.m. Sydney time. Yesterday, the contract fell $1.14 to $74.95, the lowest close since July 7. Prices have declined 5.4 percent this year.

The dollar traded at $1.2591 per euro at 8:33 a.m. Sydney time from $1.2596 per euro in New York yesterday, when it strengthened to $1.2551.

U.S. crude oil inventories probably fell 1.35 million barrels in the seven days ended July 9, according to the median estimate of 10 analysts surveyed by Bloomberg News before a government report tomorrow.

Brent crude for August settlement dropped $1.05, or 1.4 percent, to settle at $74.37 a barrel on the London-based ICE Futures Europe exchange yesterday.

FCPO Daily Commentary for 13rd July 2010

2010-07-13T08:53:00.001+08:00

FCPO 3rd month Sep futures contract surge RM38 higher to close at RM2338 levels as compare to previous trading sessions with a total of 9,124 lots traded in the market. FCPO price was opened higher as overnight soybean oil and crude oil trading were settle higher despite both were traded lower during electronic trading sessions. Another factor that boost FCPO price towards north is favorable MPOB report that indicates firm demand on CPO production.
FCPO price penetrate previous higher RM2322 region at 50% Fibonacci resistance levels to reach new high at RM2340 regions before end of trading sessions. FCPO price seems well supported above support levels at RM2310 and RM2298 regions before surge higher towards resistance levels at RM2335 and RM2352; both were 61.8% and 78.6% Fibonacci resistance levels. Technically, FCPO price must not be trading above resistance levels at RM2352 and RM2375 regions while support levels seems crucial at RM2310 and RM2280 regions.

FKLI Daily Commentary for 13rd July 2010

2010-07-13T08:52:00.001+08:00

FKLI July Futures contract traded unchanged to close at 1328.5 levels as compare to previous trading session to with a total of 4,475 lots traded in the market. FKLI opened and surge higher during early trading sessions but settle lower due to heavy profit taking activity as FKLI has been traded higher for almost 5 days consecutively.
FKLI attempts to penetrate previous resistance levels 1342 fails after being resisted at daily trend line at 1337 regions and settle below resistance levels at 1330.5; 78.6% Fibonacci resistance levels. Technically, FKLI’s correction wave count seems in jeopardy as attempt to search higher resistance levels was persistence. However, resistance levels at 1342 and 1352.5 seen as crucial resistance levels in order for the correction wave count to remain intact. Support levels were seen at 1325 and 1315 regions.

Oil Rises a Fourth Day as China’s Crude Imports Climb to Record

2010-07-12T09:59:00.001+08:00

July 12 (Bloomberg) -- Oil rose for a fourth day in New York after China, the world’s second-biggest energy consumer, increased crude imports to a record in June.

Oil gained as China’s net purchases climbed to 22.14 million metric tons, or about 5.39 million barrels a day, according to preliminary data released July 10 by the General Administration of Customs. That beat the previous record of 20.98 million tons in April. U.S. fuel demand rose 3.2 percent in the week ended July 2, the Energy Department said.

“The Chinese trade data was quite strong for crude oil imports,” said David Moore, an analyst at Commonwealth Bank of Australia in Sydney. “U.S. demand has picked up over the year, but the strongest growth is in the developing economies.”

Crude for August delivery rose as much as 26 cents, or 0.3 percent, to $76.35 a barrel in electronic trading on the New York Mercantile Exchange and was at $76.27 at 10:05 a.m. in Sydney. The contract gained 65 cents, or 0.9 percent, to settle at $76.09 on July 9. Futures have declined 3.9 percent since the start of the year.

The global economy will grow 4.6 percent in 2010, the biggest expansion since 2007, the International Monetary Fund said on July 7 in revisions to its World Economic Outlook.

Brent crude for August settlement traded at $75.53 a barrel, up 11 cents, on the London-based ICE Futures Europe exchange at 9:26 a.m. Sydney time. The contract climbed 71 cents, or 1 percent, to settle at $75.42 July 9.

FCPO Daily Commentary for 12th July 2010

2010-07-12T08:44:00.002+08:00

FCPO 3rd month Sep futures contract rebound RM11 higher to close at RM2300 levels as compare to previous trading sessions with a total of 10,406 lots traded in the market. FCPO price was opened slightly higher but traded higher during trading sessions as crude oil surge up higher during trading electronic trading while soybean oil was traded within range.
FCPO price penetrate previous higher RM2310 region at 38.2% Fibonacci resistance levels to reach new high at RM2320 regions before start to pull back lower at RM2298; 78.6% Fibonacci support levels. Technically, FCPO price still seen remain trading on rebound wave where next nearest resistance levels seen at RM2335 and RM2352; both are 61.8% and 78.6% Fibonacci resistance respectively. However, FCPO price would be further affirm to trade lower provided support levels at RM2286 and RM2275 fails to hold against the selling pressure.

FKLI Daily Commentary for 12nd July 2010

2010-07-12T08:43:00.001+08:00

FKLI July Futures contract traded 12 points higher to close at 1328.5 levels as compare to previous trading session to with a total of 8,370 lots traded in the market. FKLI surge higher during trading sessions as regional indices were trading higher which indirectly encourage FKLI attempt to search for higher resistance levels.
FKLI continue to breach previous resistance levels at 1322 regions to search for higher resistance levels at 1333; 78.6% Fibonacci resistance levels range from 1342 to 1287 regions. Technically, FKLI still seems unclear on the major trading direction. However, it’s very crucial that FKLI must not penetrate resistance levels at 1336 and 1342 in order for FKLI to remain trading as correction wave. Failure to hold trading price below resistance shall indicate market would be riding on bull market. FKLI support levels were seen at 1325 and 1316.5 regions.

Oil Poised for Biggest Weekly Gain in Six as Supplies Decline

2010-07-09T10:07:00.000+08:00

July 9 (Bloomberg) -- Oil rose, poised for its biggest weekly gain in six, as U.S. crude inventories fell after Hurricane Alex disrupted Gulf of Mexico output and deliveries, and a drop in jobless claims prompted optimism on the economy.

Oil rose for a third day after the Energy Department said crude supplies dropped the most since September. U.S. retailers yesterday reported sales gains in June, while the International Monetary Fund raised its forecast for global growth this year on July 7, reflecting a stronger-than-expected first half.

“There’s optimism out there,” said Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney. “Oil is benefiting from the IMF report and retail numbers. The draws in stockpiles were encouraging. I expect prices to move up to $80, but we still need more signs of recovery.”

Crude oil for August delivery gained as much as 46 cents, or 0.6 percent, to $75.90 in electronic trading on the New York Mercantile Exchange. It was at $75.78 at 9:40 a.m. in Sydney. Yesterday, the contract rose $1.37, or 1.9 percent, to $75.44, the highest settlement since June 30.

Oil is poised for a gain of 5 percent for the week, the biggest increase since May 28. Futures have climbed 25 percent from a year ago.

U.S. crude oil supplies fell 4.96 million barrels to 358.2 million, the Energy Department said. Total U.S. fuel consumption increased 3.2 percent to 19.6 million barrels a day, the highest level since the week ended May 28, the department said in a weekly report.

Jobless Claims

Alex, the earliest hurricane of the Atlantic season since 1995, made landfall in northeastern Mexico June 30. Almost 421,000 barrels of daily oil output, or 26 percent of Gulf of Mexico production, was shut-in on the day the storm hit shore.

The number of Americans applying for jobless benefits last week fell 21,000 in the week ended July 3 to 454,000, a level that indicates improvement in the labor market is taking time to develop. Economists had forecast jobless applications would decline to 460,000 from an initially reported 472,000 for the prior week, according to the median of 36 projections in a Bloomberg survey.

U.S. retailers reported sales gains in June as record-high temperatures on the East Coast pushed more shoppers into air- conditioned malls.

German industrial production climbed in May as the global recovery fueled demand for goods from Europe’s largest economy. Production rose 2.6 percent from April, when it gained a revised 1.2 percent, the Economy Ministry said. Economists had forecast a 0.9 percent gain, according to a Bloomberg News survey.

The world economy will expand 4.6 percent in 2010, the biggest gain since 2007, compared with an April projection of 4.2 percent, the Washington-based IMF said in revisions to its World Economic Outlook.

Brent crude for August delivery climbed $1.20, or 1.6 percent, to settle at $74.71 a barrel on the London-based ICE Futures Europe exchange yesterday.

Gold May Advance as Price Decline Spurs Buying, Survey Shows

2010-07-09T10:06:00.001+08:00

July 9 (Bloomberg) -- Gold may advance on speculation that the metal’s drop to the lowest level in more than six weeks will prompt some investors to increase holdings, a survey found.

Thirteen of 20 traders, investors and analysts surveyed by Bloomberg, or 65 percent, said bullion will climb next week. Four forecast lower prices and three were neutral. Gold for delivery in August was down 1.5 percent for this week at $1,189.50 an ounce at 11 a.m. yesterday on the Comex in New York. It reached a record $1,266.50 on June 21.

Gold slipped on July 7 to $1,185 an ounce, the lowest price since May 24, and is heading for a third weekly decline. The metal gained this year as investors sought to shield their wealth from financial turbulence in Europe and on concern the global recovery may slow. The European Central Bank yesterday left its main interest rate unchanged at a record low 1 percent and the Bank of England kept its rate at 0.5 percent.

“Many traders and investors who have been on the sidelines in recent weeks see the present selloff as a buying opportunity,” analysts at Dublin-based broker GoldCore Ltd. said in a report. “Until savers and bondholders are compensated for considerable risk with higher yields, gold is likely to remain in a secular bull market.”

The red bars on the attached chart are derived by subtracting bearish forecasts from bullish estimates, with readings below zero signaling that most respondents expect a decline. The green line shows the gold price. The data shown are as of July 2.

The weekly gold survey that started six years ago has forecast prices accurately in 182 of 318 weeks, or 57 percent of the time.

FCPO Daily Commentary for 9th July 2010

2010-07-09T09:12:00.001+08:00

FCPO 3rd month Sep futures contract rebound RM20 lower to close at RM2290 levels as compare to previous trading sessions with a total of 8,789 lots traded in the market. FCPO price was opened higher for trading as soybean oil and crude oil were traded firm during overnight and electronic trading sessions.
FCPO manage to record new high at RM2310 levels during open for trading but retrace lower towards 50% Fibonacci support levels at RM2290 regions. Technically, FCPO price seems could be riding on rebound wave where next nearest resistance levels at RM2310 and RM2334; 38.2% and 61.8% Fibonacci resistance levels. However, FCPO price trading still seems support at RM2260 and RM2130 regions in the hourly trading price chart.

FKLI Daily Commentary for 9th July 2010

2010-07-09T09:11:00.002+08:00

FKLI July Futures contract traded 12 points higher to close at 1316.5 levels as compare to previous trading session to with a total of 5,578 lots traded in the market. FKLI opened higher as Dow Jones index was settle almost 3% higher as compare to previous trading sessions while Nikkei further encourage for higher opening by trading around 260 points point as compare to previous trading sessions.
FKLI tested low of wave 1 count at 1322 regions during open for trading and soon trading lower followed by consolidation for the entire trading sessions within range from 1315 to 1319 regions which coincidently same levels at 38.2% Fibonacci support levels at 61.8% Fibonacci resistance levels. Technically, FKLI still seen uncertain on this rebound wave has been completed where only confirmation support levels seen at 1304 and 1298 regions while higher resistance levels were expected around 1326 and 1338 regions.

FCPO Daily Commentary for 8th July 2010

2010-07-08T09:01:00.002+08:00

FCPO 3rd month Sep futures contract rebound RM31 lower to close at RM2270 levels as compare to previous trading sessions with a total of 8,203 lots traded in the market. FCPO price traded lower before end of trading sessions as crude oil plunge lower despite soybean oil traded sideways during electronic trading
FCPO penetrate previous low at RM2277 levels to reach new low at RM2270 levels after attempt to penetrate psychology levels at RM2300 regions failed. Technically, FCPO price seems attempt to challenge support levels at RM2260; 78.6% Fibonacci support levels, in the daily chart major wave count. However, FCPO price would only further affirm riding on Bull trend provided FCPO trading price manage to trade above resistance levels at RM2375 and RM2410 regions.

FKLI Daily Commentary for 8th July 2010

2010-07-08T09:01:00.001+08:00

FKLI July Futures contract traded 7 points lower to close at 1304.5 levels as compare to previous trading session to with a total of 6,578 lots traded in the market. FKLI opened lower but trading higher during trading sessions as most of the regional indices were covered from losing ground while KLCI was settled higher upon closing.
FKLI penetrate previous support levels at 1307.5 regions before manage to trade below 1300 psychology levels for a short while but slow recovered towards 50% Fibonacci resistance levels at 1305.5 regions. Technically, FKLI trading price seems temporary holding below resistance levels at 1313 and 1318 regions; 50% and 61.8% Fibonacci resistance levels. However, in order for FKLI further affirm trading on correction phase, it’s very important FKLI trading price would trading below support levels at 1302 and 1292 regions.

FCPO Daily Commentary for 7th July 2010

2010-07-07T08:38:00.003+08:00

FCPO 3rd month Sep futures contract rebound RM11 higher to close at RM2301 levels as compare to previous trading sessions with a total of 9,535 lots traded in the market. FCPO price recovered from losses as soybean oil and crude oil were recovered from previous losing ground.
FCPO price dip at RM2277 regions; 138.2% Fibonacci support levels, before begins to rebound higher towards psychology resistance levels at RM2300 regions while coincidently located same levels at 23.6% Fibonacci resistance level. Technically, FCPO price seems undergoing wave 4 rebound activity after attempt successfully found support levels at RM2277 to complete wave 3 count where nearest resistance levels were seen at RM2314 and RM2326 regions. However, FCPO price would seen to great support levels around RM2260 and RM2240 region in the daily chart which lead to assumption FCPO would trading within limited range during trading sessions.

FKLI Daily Commentary for 7th July 2010

2010-07-07T08:37:00.002+08:00

FKLI July Futures contract traded 18 points higher to close at 1311.5 levels as compare to previous trading session to with a total of 9,704 lots traded in the market. FKLI opened lower as Dow Jones electronic trading plunged during early morning sessions but soon FKLI trading higher and settle highest as most of the regional indices and Dow Jones futures electronic trading recovered from losses during trading sessions.
FKLI penetrate previous resistance levels at 1296 regions during trading session and continue to surge up higher; indicates FKLI rebound larger wave count, towards 50% Fibonacci resistance levels at 1312.5 regions. Technically, FKLI seems undergoing larger wave 4 count where nearest seen at 1313, 1318 and 1326; all at 50%, 61.8% and 78.6% Fibonacci resistance levels. Able to hold FKLI trading price below the resistance levels shall lead to assumption for further south trading where nearest support seen at 1307.5 and 1302.

Crude Oil Rises as Investors Buy After Five Days of Decline

2010-07-05T09:17:00.000+08:00

July 5 (Bloomberg) -- Crude oil rose for the first time in six days in New York as investors took the view its biggest weekly drop in eight made the commodity attractive to buy.

Oil climbed as much as 0.6 percent to snap a five-day decline. Crude dropped 8.5 percent in the week ended July 2, the biggest since the week ended May 7. There will be no floor trading on the Nymex today because of the U.S. Independence Day holiday.

“The outlook for growth around the world is certainly not as optimistic as it was a few months ago,” said Toby Hassall, a commodity analyst at CWA Global Markets Pty in Sydney. “There will be the longer-term participants in the market who are viewing this decline in price as a good time to get long.”

Crude oil for August delivery gained as much as 43 cents to $72.57 a barrel in electronic trading on the New York Mercantile Exchange. It was at $72.26 a barrel at 9:28 a.m. Sydney time. The contract fell 81 cents, or 1.1 percent, to $72.14 on July 2. Prices have declined 8.9 percent since the start of the year.

Oil dropped for a fifth day on July 2 after the Labor Department said payrolls decreased by 125,000 last month as the government cut temporary census workers. The 1.4 percent reduction in May bookings with manufacturers was the biggest since March 2009, the Commerce Department said. Economists in a Bloomberg News survey projected a 0.5 percent drop.

Brent crude oil for August settlement traded at $71.82 a barrel, up 17 cents, on the ICE Futures Europe exchange in London at 9:27 a.m. Sydney time. The contract fell 69 cents, or 1 percent, to $71.65 on July 2.

Oil Falls a Third Day on Concerns Over China, U.S. Economies

2010-06-30T09:18:00.000+08:00

June 30 (Bloomberg) -- Oil dropped for a third day on concern over weakening economic growth in China and as confidence declined more than forecast among consumers in the U.S., the world’s biggest energy user.

Oil lost 3 percent yesterday after the Conference Board said its leading economic index for China rose more slowly in April than previously estimated. The board’s U.S. confidence index in June was lower than all forecasts in a Bloomberg News survey. The Standard & Poor’s 500 Index dropped to its lowest level since October.

“Crude has been shellacked due to confidence around the world eroding,” said Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney. “The revision in confidence was a concern.”

Crude oil for August delivery dropped 43 cents, or 0.6 percent, to $75.51 a barrel on the New York Mercantile Exchange at 9:24 a.m. Sydney time. Yesterday, the contract fell $2.31 to $75.94, the biggest one-day drop since June 4.

Oil is heading for its first quarterly decline since 2008, losing 9.9 percent since the end of March. Futures have fallen 4.9 percent this year.

The measure of China’s economy compiled by the New York- based Conference Board rose 0.3 percent in April, less than the 1.7 percent gain it reported June 15. The research group corrected the outlook, saying in an e-mailed statement that the previous reading contained a “calculation error” for total floor space on which construction began.

Consumer Confidence

The board reported its U.S. confidence index slumped to 52.9 in June from a revised 62.7 in May, as Americans became pessimistic about the outlook for the labor market and the economy. The median forecast of 71 economists’ estimates in the Bloomberg survey called for a decline to 62.5.

President Barack Obama said after meeting with Federal Reserve Chairman Ben S. Bernanke yesterday that the U.S. economy is strengthening and recovering from the worst recession since the 1930s. Still, job losses remain a “great concern” and the economy faces “headwinds” because of nervousness in the U.S. about Europe’s debt crisis.

Oil also fell on predictions that Tropical Storm Alex, moving northwest across the southern Gulf of Mexico, will miss oil-producing areas. It’s forecast to make landfall in Mexico, just south of the U.S. border, late today as a hurricane, according to the U.S. National Hurricane Center in Miami.

Crude Supplies

U.S. crude inventories declined 3.4 million barrels last week, according to a report from the industry-funded American Petroleum Institute. An Energy Department report today may also show supplies fell.

Stockpiles probably dropped 1 million barrels in the week ended June 25 from 365.1 million the prior week, according to the median estimate of 15 analysts surveyed by Bloomberg News before tomorrow’s government report. It would be the first decline in three weeks.

Oil-supply totals from the Petroleum Institute and Energy Department moved in the same direction 75 percent of the time over the past four years, according to data compiled by Bloomberg.

Brent crude for August delivery fell $2.15, or 2.8 percent, to $75.44 a barrel on the ICE Futures Europe exchange in London yesterday.

Oil Trades Near $78 as Threat From Tropical Storm Alex Eases

2010-06-29T09:45:00.001+08:00

June 29 (Bloomberg) -- Crude oil traded near $78 a barrel in New York after declining on concerns slower economic growth may curb energy demand and skepticism that production from Gulf of Mexico wells will be disrupted by a tropical storm.

Oil dropped from a seven-week high yesterday as U.S. forecasters projected that Tropical Storm Alex will move across the southern Gulf and make landfall as a hurricane July 1 in Mexico. Group of 20 leaders responded to the European debt crisis during their weekend summit in Toronto with deficit- reduction targets.

“Most of the rhetoric from the G20 meeting is for continued fiscal austerity in the big developed economies and that means weaker growth going forward,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “What seems to have supported oil prices has been the news of storms in the Gulf, tightening some of the supply side of the market. Supply is looking more positive now.”

Crude oil for August delivery was at $78.24 a barrel, down 1 cent, in electronic trading on the New York Mercantile Exchange at 10:41 a.m. Sydney time. Yesterday, the contract dropped 61 cents, or 0.8 percent, to $78.25. Futures have dropped 1.5 percent since the start of the year.

The Gulf is home to about 30 percent of U.S. oil and 12 percent of its natural gas production. It also has seven of the 10 busiest U.S. ports, according to the Army Corps of Engineers. The region accounts for about half of U.S. refining capacity, according to the Energy Department.

Crude Supplies

“Oil was probably oversold towards the end of May, early June,” National Australia Bank’s Westmore said. “Now we’re getting to a point around the high $70s which is probably in line with what you’d expect, based on the fundamentals.”

U.S. crude oil supplies probably fell 900,000 barrels last week from 365.1 million the prior week, according to the median estimate of eight analysts surveyed by Bloomberg News before an Energy Department report tomorrow. It would be the first drop in three weeks. Gasoline inventories probably slipped 400,000 barrels from 217.6 million the prior week.

Oil also declined yesterday as the dollar strengthened against the euro for the first time in four days, curbing the appeal of commodities as an alternative investment. The dollar was little changed at $1.2284 at 9:48 a.m. in Sydney.

Consumer spending in the U.S. rose more than forecast in May, a sign households are gaining confidence in the recovery and the job market. Purchases advanced 0.2 percent after holding steady the previous month, the Commerce Department reported yesterday. The median estimate of 61 economists surveyed by Bloomberg News predicted a 0.1 percent increase in spending.

Brent crude for August delivery traded at $77.65 a barrel, up 6 cents, on the ICE exchange in London at 10:40 a.m. Sydney time. Yesterday, the contract fell 53 cents, or 0.7 percent, to settle at $77.59.

Soybeans Rise as Midwest Rain Reduced Area U.S. Farmers Planted

2010-06-29T09:43:00.000+08:00

June 28 (Bloomberg) -- Soybeans rose, erasing an earlier decline, on speculation that two weeks of excessive rain have reduced the number of acres planted in the U.S., the biggest exporter of the oilseed.

Some Midwest fields got more than 9 inches (23 centimeters) of rain in the past two weeks, and Iowa, the biggest grower, is headed for the wettest June since at least 1895, T-Storm Weather in Chicago said in a report. The precipitation may mean fewer soybean acres than the 78.1 million forecast by the U.S. Department of Agriculture in March.

“There is a material loss in planted area” from northeast Nebraska to northwest Ohio, said Roy Huckabay, the executive vice president at the Linn Group, a brokerage in Chicago. “Soybean planting probably fell to 76.5 million acres.”

Soybean futures for November delivery gained 6 cents, or 0.7 percent, to $9.18 a bushel at 1:12 p.m. on the Chicago Board of Trade, after dropping 0.4 percent to $9.0825. The most-active contract slipped 2 percent last week, the eighth decline in nine weeks.

The soybean crop in the U.S., the world’s largest grower, was valued at $31.8 billion last year, second only to corn at $48.6 billion, government figures show.

Oil Trades Below $77 on Renewed Concern Europe Crisis to Spread

2010-06-25T10:00:00.003+08:00

June 25 (Bloomberg) -- Crude oil traded below $77 a barrel in New York, poised for the first weekly decline in three, on renewed concern the European debt crisis may slow the global economic recovery.

Oil rose 0.2 percent yesterday as U.S. durable goods orders meant to last three years climbed in May and after applications for jobless benefits fell from a two-month high last week. Stocks fell on concern the European debt crisis will hinder global growth. The Standard & Poor’s 500 Index dropped for a fourth day, the longest losing streak in seven weeks.

“The macro mood is still cautious,” said Toby Hassall, a commodity analyst at CWA Global Markets Pty in Sydney. “The durable goods numbers offered some positives for the demand outlook for oil. I doubt whether crude can rally without general market sentiment improving.”

Crude oil for August delivery was at $76.43 a barrel, down 8 cents, in electronic trading on the New York Mercantile Exchange at 8:22 a.m. Singapore time. Yesterday, the contract gained 16 cents to settle at $76.51. Futures are poised for a 1 percent drop this week, and are down 3.7 percent this year.

Order for goods, excluding autos and aircraft, gained 0.9 percent in the U.S. last month, the third increase in four months, according to the Commerce Department. The number of Americans applying for jobless benefits declined by 19,000 last week to 457,000, the Labor Department said.

The S&P 500 fell 1.7 percent to 1,073.69, and the Dow Jones Industrial Average lost 1.4 percent to 10,152.80 as the rising cost to protect Greece from default spurred concern that the pace of the European recovery will slow.

Brent crude oil for August delivery was at $76.41 a barrel, down 6 cents, on the ICE Futures Europe exchange in London at 8:08 a.m. Singapore time. Prices climbed 0.3 percent to close at $76.47 yesterday.

Palm Oil May Decline as Malaysia Output Grows, KL Kepong Says

2010-06-25T10:00:00.001+08:00

June 25 (Bloomberg) -- Palm oil prices may extend declines as production in Malaysia picks up, the country’s third-largest listed plantation company said.

“We are moving gradually into higher production in Peninsular Malaysia,” with output in Borneo’s Sabah state expected to increase from August, Roy Lim, a director Kuala Lumpur Kepong Bhd., said in an e-mail interview. “We expect yields to rise up till October or November,” Lim said.

Rising production may extend a drop in palm oil futures, which have lost 10 percent this year amid a record global crop of rival oilseeds. Palm oil for September delivery on the Malaysia Derivatives exchange closed at 2,390 ringgit ($738) a ton in Kuala Lumpur yesterday.

About 90 percent of palm oil, the world’s cheapest edible oil, is produced in Indonesia and Malaysia. Dry weather late last year and early this year caused by the El Nino weather phenomenon stressed oil palms, helping drive a 57 percent rally in prices in 2009.

So far there is “not much supply pressure yet as stocks are low, but they will gradually increase,” Lim said. While prices must fall to stimulate demand, “low stocks and festive demand will ensure they do not crash,” Lim said. Oil palms usually produce about 55 percent of their annual output in the second half.

Palm oil stockpiles in Malaysia shrank for a fifth month in May from April as exports gained. Inventory fell 3.7 percent to 1.56 million tons, the Malaysian Palm Oil Board said on June 10. Output rose 6.1 percent to 1.39 million tons while exports expanded 6 percent to 1.36 million tons.

Palm oil demand typically picks up in the third quarter with major festivities in China, India, Pakistan and Indonesia, the most populous Asian countries.

Oil Trades Below $77 on Renewed Concern Europe Crisis to Spread

2010-06-25T09:59:00.001+08:00

Oil Falls a Third Day on Gain in U.S. Supplies, Home Sales Drop

2010-06-24T09:45:00.000+08:00

June 24 (Bloomberg) -- Crude oil declined for a third day in New York after U.S. government reports showed an unexpected gain in supplies and a decline in purchases of new homes.

Oil dropped 1.9 percent yesterday after the Energy Information Administration reported crude stockpiles rose 2.02 million barrels to 365.1 million in the week ended June 18. Supplies were forecast to drop 800,000 barrels, according to analysts surveyed by Bloomberg News. Sales of new homes declined in May to a record low as a tax credit expired.

“Sentiment is still pretty weak,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “The fall seems mostly due to the EIA data. On the demand front, it’s still negative and still very uncertain.”

Crude oil for August delivery dropped as much as 42 cents, or 0.6 percent, to $75.93 a barrel in electronic trading on the New York Mercantile Exchange. It was at $76.14 at 9:56 a.m. Sydney time. Yesterday, the contract fell $1.50 to $76.35, the biggest drop for a front-month contract since June 11.

“There are still many weak sectors in the U.S. economy,” said Mike Sander, an investment adviser at Sander Capital Advisors in Seattle. “Prices should remain depressed. There could be a bit more room to go to the downside.”

Sales of new homes slipped to an annual pace of 300,000 last month from April, less than the median estimate of economists surveyed by Bloomberg News and the fewest in data going back to 1963, figures from the Commerce Department showed yesterday in Washington.

Interest Rates

Federal Reserve officials retained a pledge to keep the benchmark interest rate at a record low and signaled that European indebtedness may harm U.S. growth. Fed Chairman Ben S. Bernanke is trying to cut unemployment that’s close to a 26- year-high and maintain the recovery as new-home sales slide and growth in private payrolls weakens.

Imports of crude oil climbed 4.3 percent to 10.1 million barrels a day, the highest level since the week ended Jan. 2, 2009, the Energy Department report showed. Fuel imports surged 10 percent to 2.32 million barrels a day.

Gasoline supplies fell 762,000 barrels to 217.6 million last week, the report showed. An 180,000-barrel drop was forecast, according to the median of 15 responses in the Bloomberg News survey.

Refineries operated at 89.4 percent of capacity, up 1.5 percentage points from the prior week and the highest level since April, the report showed.

Brent crude oil for August delivery slipped $1.77, or 2.3 percent, to end the session at $76.27 a barrel on the London- based ICE Futures Europe exchange yesterday.

Slower Demand Growth

The International Energy Agency, an adviser to oil- consuming nations, said in a report yesterday that growth in world oil demand will slow in the next five years as the pace of Chinese consumption moderates.

The IEA estimates that the rate of annual demand growth will shrink each year between now and 2015. Consumption will climb 1 percent to 91.93 million barrels a day in 2015, down from 1.5 percent growth in 2010, according to the Paris-based agency’s Medium-Term Oil and Gas Markets 2010 report.

Chinese oil demand is expected to reach 11.63 million barrels a day by 2015, up from 9.16 million this year, according to the IEA data. The pace is slowing, with consumption rising 4.1 percent in 2015, compared with 7.6 percent this year, according to the report.

The rate of consumption decline in developed economies is accelerating. Total demand from the 30 industrialized countries that belong to the Organization for Economic Cooperation and Development will drop 0.9 percent in 2015 compared with a 0.1 percent fall in 2010, the agency estimates.

Gold Falls as Dollar Gain Curbs Demand for Alternative Asset

2010-06-24T09:43:00.000+08:00

June 23 (Bloomberg) -- Gold futures fell to a one-week low on speculation the dollar’s rally will erode demand for the precious metal as an alternative asset.

The greenback headed for the fourth straight gain against a basket of six major currencies. Before today, gold rose 13 percent this year, reaching a record $1,266.50 an ounce on June 21, on demand for a haven amid Europe’s sovereign-debt woes.

“Now that the euro has stabilized, the focus is back on the dollar-and-gold relationship,” said Frank Lesh, a trader at FuturePath Trading LLC in Chicago. “There’s just not enough fear and panic to send gold flying. There’s a little disappointment among recent longs that gold is just backing and filling, instead of advancing after making an all-time high.”

Gold futures for delivery in August dropped $6, or 0.5 percent, to $1,234.80 on the Comex in New York. Earlier, the metal touched $1,225.20, the lowest level for a most-active contract since June 15.

Gold has historically moved inversely to the dollar. This year, the metal climbed to records in euros, U.K. pound and Swiss francs.

Before today, the euro climbed 3.3 percent from a four-year low on June 7.

“It is becoming apparent that at least some of the aggressiveness among speculators as regards to pouncing upon the euro and piling further into bullion is on the decline,” said Jon Nadler, a senior analyst at Kitco Inc. in Montreal.

Silver futures for July delivery dropped 44.3 cents, or 2.3 percent, to $18.504 an ounce, the biggest drop since June 4.

Platinum futures for October delivery fell $27.40, or 1.7 percent, to $1,574.70 an ounce on the New York Mercantile Exchange, the largest decline in four weeks.

Palladium futures for September delivery tumbled $15.60, or 3.2 percent, to $474.35 an ounce.

Oil Falls a Second Day as U.S. Stockpiles Rise, Home Sales Drop

2010-06-23T09:53:00.000+08:00

June 23 (Bloomberg) -- Crude oil fell for a second day in New York after an industry report showed an increase in crude supplies and sales of existing U.S. homes unexpectedly declined in May, signaling the economy is struggling to recover.

Oil dropped after purchases of previously owned houses in the U.S. fell 2.2 percent, missing expectations. The American Petroleum Institute said crude stockpiles climbed 3.69 million barrels last week. An Energy Department report today may show inventories declined by 800,000 barrels.

“Sentiment remains very fragile,” said David Moore, a commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney. “Confidence has been rattled in recent months by European fiscal issues and by data in the U.S. that’s been uneven. They’re factors that have left markets cautious.”

Crude oil for August delivery dropped as much as 49 cents, or 0.6 percent, to $77.36 a barrel in electronic trading on the New York Mercantile Exchange, and was at $77.37 at 8:45 a.m. Singapore time. Yesterday, the contract lost 76 cents, or 1 percent, to $77.85.

The July contract fell 61 cents, or 0.8 percent, to settle at $77.21 when it expired at the close of floor trading. Oil has risen 12 percent in the past year.

The API data showed “crude stocks were up quite a bit, distillate stocks were up, and gasoline supplies were up,” Commonwealth Bank of Australia’s Moore said. “I don’t think the oil market is tight at present. Inventories remain high.”

Crude Inventories

U.S. crude oil inventories probably dropped 800,000 barrels in the seven days ended June 18 from 363.1 million the week before, according to the median of 15 analyst estimates surveyed by Bloomberg News.

Crude oil extended declines after a New Orleans federal judge lifted the six-month moratorium on deepwater drilling imposed by President Barack Obama following the largest oil spill in U.S. history.

Obama temporarily halted all drilling in waters deeper than 500 feet on May 27 to give a presidential commission time to study improvements in the safety of offshore operations. More than a dozen Louisiana offshore service and supply companies sued U.S. regulators to lift the ban. The government said it would appeal the decision.

U.S. home sales decreased to a 5.66 million annual rate in May from 5.79 million in April, figures from the National Association of Realtors showed yesterday in Washington. They were forecast to rise to a 6.12 million rate, according to the median estimate of 74 economists in a Bloomberg News survey.

Brent crude for August delivery traded at $77.80 a barrel, down 24 cents, on the ICE Futures Europe exchange in London at 8:06 a.m. in Singapore. Yesterday, the contract dropped 78 cents, or 1 percent, to $78.04.

Crude Oil Declines as Optimism Over China’s Currency Move Fades

2010-06-22T09:32:00.001+08:00

June 22 (Bloomberg) -- Crude oil declined for the first time in three days as optimism faded that China’s plan to add more flexibility in the yuan’s fixed exchange rate would strengthen the global economic recovery.

Oil gave up yesterday’s gains as U.S. stocks fell and the dollar rose against the euro, limiting investors’ need for commodities to hedge against inflation. The People’s Bank of China said June 20 that it’s abandoning the yuan peg adopted during the global financial crisis to shield exporters.

“I don’t think an increase in the value of the yuan will increase China’s demand for oil,” said Mike Sander, an investment adviser at Sander Capital Advisors in Seattle.

Crude oil for July delivery dropped 57 cents, or 0.7 percent, to $77.25 a barrel in electronic trading on the New York Mercantile Exchange at 8:00 a.m. Sydney time. Yesterday, the contract rose 64 cents, or 0.8 percent, to $77.82.

China, the world’s most-populous nation, consumes more oil than any country except the U.S. China’s central bank said there’s no basis for “large-scale” moves in its currency even as it pledged increased exchange-rate flexibility.

The dollar traded little changed at $1.2320 a euro at 8:41 a.m. Sydney time, after climbing 0.6 percent yesterday.

U.S. inventories of crude oil probably dropped 1 million barrels last week, according to the median of 10 analyst estimates in a Bloomberg News survey before an Energy Department report tomorrow.

Brent crude for August settlement advanced 60 cents, or 0.8 percent, to $78.82 on the ICE Futures Europe exchange in London yesterday.

Crude Oil Gains a Second Day on Signs of Increased U.S. Demand

2010-06-21T09:05:00.000+08:00

June 21 (Bloomberg) -- Crude oil rose for a second day in New York amid signs of increased fuel demand in the U.S., the biggest energy consuming nation.

Oil for July delivery gained 74 cents, or 1 percent, to $77.92 a barrel on the New York Mercantile Exchange at 9:03 a.m. Sydney time. Prices increased 4.6 percent last week, advancing for a second week, along with equities.

Oil may rise this week after U.S. gasoline demand climbed 1.6 percent to 9.34 million barrels a day, the highest level since August, according to a Bloomberg News survey. Eleven of 21 analysts, or 52 percent, predicted crude will increase.

On June 18, oil gained 39 cents, or 0.5 percent, to settle at $77.18 a barrel in New York. The Standard & Poor’s 500 Index rose to the highest level in a month.

Brent crude for August settlement gained 84 cents, or 1.1 percent, to $79.06 a barrel on the ICE Futures Europe exchange in London. It dropped 46 cents, or 0.6 percent, to $78.22 a barrel on June 18.

Tighter regulation after the BP Plc oil spill in the Gulf of Mexico may delay exploration projects and cut global output by as much as 900,000 barrels a day if a moratorium on deep- water drilling spreads beyond the U.S., Nobuo Tanaka, executive director of the International Energy Agency, said June 18.

Oil Falls a Second Day on Doubts Over Pace of Recovery in U.S.

2010-06-18T09:56:00.000+08:00

June 18 (Bloomberg) -- Crude oil fell for a second day in New York amid doubts about the pace of the economic recovery in the U.S., the world’s largest energy consumer, after an increase in jobless claims and a manufacturing slowdown.

Oil extended yesterday’s 1.1 percent drop after the Labor Department said the number of Americans seeking jobless benefits last week climbed to a one-month high. U.S. fuel consumption fell 0.9 percent to the lowest level in five weeks in the seven days ended June 11, the Energy Department reported June 16.

“The U.S. economy is facing a major structural adjustment in the wake of the financial crisis and subsequent economic slump,” said Toby Hassall, a research analyst at CWA Global Markets Ltd. “The U.S. is still the largest consumer of petroleum, so a lack of recovery in fuel demand there will have an impact on the oil market.”

Crude oil for July delivery fell as much 48 cents, or 0.6 percent, to $76.31 a barrel on the New York Mercantile Exchange. It was at $76.38 at 7:37 a.m. Singapore time. The contract lost 88 cents to settle at $76.79 yesterday. Futures are down 3.6 percent this year.

Initial jobless applications increased by 12,000 to 472,000 in the week ended June 12. Economists surveyed by Bloomberg News projected 450,000 claims, according to the median forecast. The number of people receiving unemployment insurance rose, while those getting extended benefits dropped.

Brent crude for August settlement rose 54 cents, or 0.7 percent, to $78.68 a barrel on the ICE Futures Europe exchange in London yesterday.

Crude Inventories

U.S. crude inventories were 8.4 percent above their five- year average last week, an increase from 7.3 percent the week before, the Energy Department said on June 16. Supplies gained 1.69 million barrels, or 0.5 percent, to 363.1 million last week, the department said. It was the first increase in three weeks as imports climbed and refinery operations declined.

Supplies at the Cushing, Oklahoma, delivery point for the New York futures, climbed 194,000 barrels to 37.6 million, near the record of 37.9 million. This gain has depressed West Texas oil relative to Brent, with the North Sea grade for August trading at a 64 cents premium to the corresponding U.S. contract.

An offshore drilling moratorium in the wake of the Gulf of Mexico oil spill could trim U.S. production by 200,000 barrels a day next year, eventually add $5 or more to the price of oil and cause the U.S. to seek more foreign crude, Adam Sieminski, chief energy economist for Deutsche Bank, said on Bloomberg television.

Oil Falls After U.S. Crude Supplies Climb, Housing Starts Drop

2010-06-17T09:26:00.000+08:00

June 17 (Bloomberg) -- Oil fell from a six-week high after a government report showed U.S. crude supplies increased last week as refiners cut processing rates, and on concerns over the strength of the recovery as housing starts declined.

Oil reversed its 1 percent gain yesterday as new home construction fell 10 percent in May, the most since March 2009, and building permits dropped, the U.S. Commerce Department said yesterday. Crude supplies unexpectedly gained 1.69 million barrels, the Energy Department said. Analysts had forecast a 1 million barrel drop.

“Inventories are generally still pretty high, but the oil price has held up well relatively,” said David Moore, a commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney. “Markets are still assuming a U.S. recovery, albeit an uneven recovery road.”

Crude oil for July delivery dropped as much as 46 cents, or 0.6 percent, to $77.21 a barrel in electronic trading on the New York Mercantile Exchange. It was at $77.26 at 7:22 a.m. Singapore time. The contract yesterday rose 73 cents, or 1 percent, to $77.67 a barrel, the highest settlement price since May 5. Futures are up 8.8 percent from a year ago.

Crude climbed yesterday as motor fuels gained on signs of higher consumption in the peak U.S. driving season from the Memorial Day weekend in late May to Labor Day in early September. Gasoline demand rose 1.6 percent to 9.34 million barrels a day, the highest level since the week ended Aug. 28.

Gasoline supplies fell 636,000 barrels to 218.3 million last week, the Energy Department said.

Crude oil stockpiles rose to 363.1 million in the week ended June 11, the department said. Inventories of distillate fuel, a category that includes diesel and heating oil, increased 1.8 million barrels to 156.6 million. A 1-million-barrel gain was forecast.

Brent crude oil for August settlement rose $1.04, or 1.4 percent, to end the session at $78.14 a barrel yesterday on the London-based ICE Futures Europe exchange.

FCPO Daily Commentary for 17th June 2010

2010-06-17T08:48:00.002+08:00

FCPO 3rd month Sep futures contract rebound RM14 higher to close at RM2380 levels as compare to previous trading sessions with a total of 8,245 lots traded in the market. FCPO price trading higher after long consolidate near the low region before starts to surge up before end of trading sessions as soybean oil and crude oil were traded higher overnight sessions while mainly consolidate during electronic trading sessions.
FCPO price dip at RM2367 regions before run into consolidation phase but FCPO price trading higher before of trading sessions. Technically, FCPO seems complete wave 3 trading south to complete at 150% and 78.6% Fibonacci support levels before start to rebound after found support levels at RM2370 regions. FCPO price would expect further rebound in the coming trading sessions provided support levels at RM2370 and RM2360 were not violated in the coming trading sessions while expecting some degree of resistance levels at RM2406 and RM2420; 38.2% and 50% Fibonacci resistance levels.

FKLI Daily Commentary for 17th June 2010

2010-06-17T08:47:00.003+08:00

FKLI June Futures contract traded 13 points higher to close at 1309 levels as compare to previous trading session to with a total of 7,122 lots traded in the market. FKLI opened and trading higher during trading sessions as Dow Jones were settle higher during overnight trading while regional indices further encourage FKLI intraday trading but FKLI retrace slightly lower before end of sessions due to mild profit taking activity.
FKLI penetrate previous resistance levels at 1308.5 regions during trading session and manage to surge up higher towards 1316 regions; 338.2% Fibonacci resistance levels, before retrace lower before end of trading sessions. Technically, FKLI seems extend further higher towards next nearest resistance levels at 1325 and 1348 regions; 78.6% and 100% Fibonacci resistance levels despite previous trading sessions dip low at 1269.5. However, FKLI must not trade below support levels at 1293 and 1269.5 in order for FKLI to remain in rebound phase. Failure to hold above the support levels shall indicate continuation of correction phase.

FCPO Daily Commentary for 15th June 2010

2010-06-14T23:56:00.001+08:00

FCPO 3rd month Aug futures contract rebound RM24 higher to close at RM2410 levels as compare to previous trading sessions with a total of 6,330 lots traded in the market. FCPO price traded higher during trading sessions as soybean oil and crude oil electronic trading were traded higher despite were settled lower during overnight trading.
FCPO price consolidate within price range from RM2390 – RM2403 region before manage to break up and settled at higher traded price. Technically, FCPO seem to rebound after trading lower towards support levels at RM2370 and RM2357 region. FCPO price trading would view as bullish trading once traded price manage to trade above resistance levels at RM2430 and RM2460; both are 50% and 78.6% Fibonacci resistance levels.

FKLI Daily Commentary for 15th June 2010

2010-06-14T23:55:00.002+08:00

FKLI June Futures contract traded 7.5 point higher to close at 1304.5 levels as compare to previous trading session to with a total of 3,263 lots traded in the market. FKLI price settled higher before of trading sessions after long stagnant trading due to overseas regional indices and Dow Jones futures electronic trading was traded higher during trading sessions.
FKLI consolidate within price from 1301 to 1303 region during trading sessions before price manage to break up from range to test 1305 regions. Technically, FKLI seems stands firm above 50% Fibonacci support levels at 1299.5 regions before break above previous resistance levels at 1303 and surge higher during trading sessions. FKLI would anticipate further upside trading provided support levels at 1296 and 1289.5 were not violated in the coming trading sessions. However, FKLI would expect to encounter great selling pressure around resistance levels at 1310 and 1325 region.

Oil Rebounds Above $74 in New York on U.S. Demand-Growth Bets

2010-06-14T09:43:00.001+08:00

June 14 (Bloomberg) -- Crude oil rose in New York, extending last week’s gains, on speculation sustained growth in the U.S. economy will boost fuel demand from the world’s biggest energy consumer.

Oil climbed as much as 0.8 percent before reports this week that may show U.S. factories churned out more goods last month and the cost of living declined. This could point to a manufacturing-led recovery that isn’t generating inflation, according to a Bloomberg News survey of economists.

“It’s all about the economy,” said Chip Hodge, who oversees a $9 billion natural-resource bond portfolio as senior managing director at MFC Global Investment Management in Boston. “Economic sentiment is going to remain the ultimate driver of this market for the foreseeable future.”

Crude oil for July delivery rose as much as 59 cents to $74.37 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $74.30 at 6:38 a.m. Singapore time. Futures increased 3.2 percent last week and are up 5.1 percent from a year ago.

Production at U.S. factories, mines and utilities increased in May for the 10th time in 11 months, according to the median estimate of 63 economists polled by Bloomberg News ahead of Federal Reserve figures due June 16.

Consumer prices probably slipped 0.2 percent in May, after declining 0.1 percent the previous month, the survey showed.

Consumer Sentiment

The Thomson Reuters/University of Michigan preliminary consumer sentiment index for the U.S. rose to 75.5 for June from 73.6 last month, data June 11 showed. That’s the highest since January 2008, beating a median 74.5 estimate from economists polled by Bloomberg News.

“Any concerns about the economy are going to have a major impact on oil,” said Rick Mueller, director of oil markets at Energy Security Analysis Inc. in Wakefield, Massachusetts. “The strength of the market has been built on expectations of an economic rebound.”

Brent crude oil for July delivery rose as much as 30 cents, or 0.4 percent, to $74.65 a barrel on the London-based ICE Futures Europe exchange. It was at $74.63 at 6:15 a.m. Singapore time. The contract increased 3.1 percent last week.

The dollar dropped to $1.2138 per euro, from $1.2112 on June 11 in New York. The U.S. currency’s decline bolsters the investment appeal of commodities.

Soybeans Rise as China Increases Cooking-Oil Imports From U.S.

2010-06-14T09:42:00.001+08:00

June 11 (Bloomberg) -- Soybeans rose the most in a week after a government report showed increased U.S. sales of vegetable oil to China, the world’s largest consumer.

For the second straight day, U.S. exporters reported selling 40,000 metric tons of soybean oil to China for delivery before the end of September, the U.S. Department of Agriculture said. China halted shipments from Argentina, the world’s biggest supplier, in April as part of a dispute over antidumping measures. China bought 51,621 tons of U.S. soybean oil in 2009.

“China is buying soybean oil from the U.S. to offset lost supplies from Argentina,” said Greg Hunt, a market analyst for Fox Investments in Chicago. “This is a big change in world trade.”

Soybean futures for November delivery jumped 14.5 cents, or 1.6 percent, to $9.0925 a bushel on the Chicago Board of Trade, the biggest gain since June 3. The November contract replaced July futures as the most-active contract on July 9, when the price touched $8.8675, the lowest level since Oct. 6. The November contract rose 1 percent this week, the most since the week ended April 23.

Almost all China’s soybean oil has come from Argentina and Brazil, customs data show. Imports of crude bean-oil from the U.S. have been mostly barred because of a procedural dispute on safety certification. The USDA said last week it may take steps to certify the safety of domestic soybean oil to spur exports to China.

Busy Port

Qingdao Port, the biggest in China’s Shandong province, is congested by ships arriving to unload soybeans, a person with direct knowledge of the matter said. As many as nine more ships, each carrying about 60,000 metric tons of soybeans, are scheduled to unload this month, in addition to the two or three that have already been processed, said the person who declined to be identified because the information isn’t public. Normally, there would be five, he said.

Prices also rallied on speculation that farmers may not plant as much as expected in parts of the Midwest after rains during the past three weeks delayed fieldwork, said Charlie Sernatinger, a vice president for Fortis Clearing Americas LLC in Chicago. The last dates for planting soybeans without losing a portion of government-subsidized crop-insurance coverage occur next week in some Midwest states, Sernatinger said.

Some fields from Nebraska to Ohio received as much as four times the normal rain in the past two weeks, according to data from the High Plains Regional Climate Center at the University of Nebraska in Lincoln. Farmers told the USDA in March they planned to boost planted acreage to a record 78.098 million acres this year.

“The rains just will not stop” in the eastern soybean- growing states, Sernatinger said. “Now analysts are starting to scale back on their earlier calls that the beans would add a half million acres to the March intentions number.”

The soybean crop in the U.S., the world’s largest grower, was valued at $31.8 billion last year, second only to corn at $48.6 billion, government figures show.

Oil Jumps to Four-Week High on Signs of Global Economic Rebound

2010-06-11T08:54:00.001+08:00

June 10 (Bloomberg) -- Crude oil jumped to the highest level in four weeks as equities surged after economic reports from China, Japan and Australia indicated that the global recovery is strengthening.

Oil climbed 5.7 percent in the past three days as Chinese exports increased the most in six years and Japan’s economy grew at the fastest rate since the second quarter of 2009 in the three months to March. The Dow Jones Industrial Average gained 2.8 percent, and the euro rose for a third day.

“We’re up along with everything else,” said Jim Ritterbusch, president of Ritterbusch & Associates, a Galena, Illinois, consulting firm. “The stock market’s up, and the euro is strong. A 200-point gain in the Dow Jones would indicate that there’s an increase in sentiment.”

Crude oil for July delivery rose $1.10, or 1.5 percent, to settle at $75.48 a barrel on the New York Mercantile Exchange, the highest level since May 12. Futures have increased 5.8 percent in the past year.

The Dow average climbed 273.35 points to 10,172.60 in New York. The Standard & Poor’s 500 Index increased 3 percent to 1,086.84.

The euro advanced 1.3 percent against the dollar to $1.2131 from $1.1979 yesterday, boosting the appeal of commodities as an alternative investment to the U.S. currency. The euro increased on speculation that Europe’s fiscal debt crisis is unlikely to derail global growth.

China

Chinese exports gained 48.5 percent in May from a year earlier, more than the 32 percent median estimate in a Bloomberg News survey of 32 economists. None expected such a big increase.

Customs data from China, the world’s second-largest energy consumer after the U.S., showed oil imports grew last month by 4.4 percent from a year earlier to 17.84 million metric tons, or about 4.36 million barrels a day.

“Fairly good economics are coming out of China and we’re getting a boost from it,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut.

Japan’s economy grew at an annualized 5 percent rate in the first quarter, faster than the 4.9 percent reported last month, a Cabinet Office report showed today in Tokyo. The median of 18 estimates in a Bloomberg News survey was for a 4.2 percent pace.

Australian employers added workers in May for a third straight month, with the number of people employed rising 26,900 from April, the statistics bureau in Sydney said today. That’s more than the median estimate of 20,000 in a Bloomberg survey of 23 economists.

Demand Forecast

The International Energy Agency increased its demand forecast for worldwide oil use in 2010 by 1.7 million barrels, or 2 percent, to a record 86.4 million barrels a day.

“The IEA on top of yesterday’s mildly bullish inventories report is keeping some upward pressure on the market today,” said Michael Lynch, president of Strategic Energy & Economic Research, in Winchester, Massachusetts.

U.S. oil supplies fell 1.83 million barrels to 361.4 million in the week ended June 4, the lowest level since April, the Energy Department reported yesterday.

OPEC, producer of about 40 percent of the world’s oil, will boost shipments this month as refiners raise operating rates to meet summer demand for fuels, according to a report today by tanker-tracker Oil Movements. OPEC, excluding Ecuador and Angola, will move 23.65 million barrels a day in the four weeks ending June 26, up 0.4 percent from the period to May 29.

Saudi Capacity

Saudi Arabia, the largest oil producer in the Organization of Petroleum Exporting Countries, plans to maintain spare oil- production capacity of about 2.5 million barrels a day in the next five years, Oil Minister Ali al-Naimi said in an interview with consultants Petroleum Policy Intelligence.

The kingdom’s spare capacity was about 3.2 million barrels a day in May, according to Bloomberg estimates.

The parliament of Iran, OPEC’s second-largest oil producer, will consider downgrading relations with the United Nations nuclear agency after the UN Security Council passed a fourth round of sanctions against the Persian Gulf nation yesterday over its atomic development.

“There are definitely some underlying geopolitical tensions that are giving support to energy prices,” said John Kilduff, a partner at Round Earth Capital, a New York-based hedge fund that focuses on food and energy. He cited Iran, the conflict in the Gaza Strip and the political situation in North Korea.

Brent crude for July delivery gained $1.02, or 1.4 percent, to $75.29 a barrel on the ICE Futures Europe exchange in London.

Oil volume in electronic trading on the Nymex was 692,374 contracts as of 3:02 p.m. in New York. Volume totaled 695,293 contracts yesterday, 11 percent above the average of the past three months. Open interest was 1.33 million contracts.

Soy-Stockpile Estimate Cut by USDA on Increased Domestic Use

2010-06-11T08:53:00.001+08:00

June 10 (Bloomberg) -- Soybean inventories in the U.S., the world’s largest grower and exporter, will be lower than forecast last month because of increased domestic demand, the government said.

Stockpiles will total 185 million bushels at the end of the marketing year on Aug. 31, compared with 138 million a year earlier, the U.S. Department of Agriculture said today in a report. Last month, the USDA forecast 190 million bushels. An increase in the estimate for crushings to 1.74 billion bushels from 1.735 billion in May accounted for the difference.

“Beans are hard to come by,” said Mike Zuzolo, the president of Global Commodity Analytics in Lafayette, Indiana. The government report “answered the question about whether beans are actually out there or if farmers are just holding onto them,” Zuzolo said.

Analysts expected inventories would drop to 183.6 million bushels, based on 28 estimates in a Bloomberg News survey. Stockpiles for the year ending Aug. 31, 2011, are seen at 360 million bushels, a decline from 365 million predicted in May, because of the revision to the 2010 forecast.

Soybean futures for July delivery rise 12.5 cents, or 1.3 percent, to $9.435 a bushel yesterday on the Chicago Board of Trade. The most-active contract has dropped 10 percent this year on forecasts for record crops in South America.

Oil Falls for First Time in Three Days on U.S. Economy Concerns

2010-06-10T09:56:00.000+08:00

June 10 (Bloomberg) -- Crude oil declined for the first time in three days in New York after the Federal Reserve said the U.S. economy was subdued in many parts of the country, signaling fuel demand growth may slow.

Oil pared some of yesterday’s 3.3 percent gain after U.S. equities fell following a slide in energy and financial shares and the release of the Fed’s Beige Book regional survey. Fed Chairman Ben S. Bernanke said the recovery isn’t as strong as he prefers and faces risks from Europe’s debt crisis. An Energy Department report showed higher gasoline supplies than forecast.

“There are still lingering macro concerns,” said Toby Hassall, a commodity analyst at CWA Global Markets Pty in Sydney. “If you look at market sentiment relative to where it was a few months ago, the global outlook certainly isn’t as bright as it was and that feeds through to crude demand.”

Crude oil for July delivery dropped as much as 66 cents, or 0.9 percent, to $73.72 a barrel in electronic trading on the New York Mercantile Exchange, and was at $73.93 at 9:12 a.m. Singapore time. Yesterday, the contract rose $2.39, the biggest advance since May 27, to settle at $74.38. Futures have fallen 6.8 percent this year.

The Beige Book report “was not taken positively across any of the markets,” said Mike Sander, an investment adviser at Sander Capital Advisors in Seattle.

Gasoline supplies in the U.S. fell 8,000 barrels to 218.9 million barrels last week, according to the Energy Department. A decline of 500,000 barrels was forecast by analysts surveyed by Bloomberg News before the report.

Gasoline Demand

Motor gasoline demand declined 1 percent to 9.1 million barrels a day from a year earlier in the four weeks ended June 4, according to the Energy Department.

Inventories of crude oil fell 1.83 million barrels to 361.4 million in the week ended June 4, the Energy Department reported, the lowest level since April. Supplies were forecast to decline by 900,000 barrels, based on the median estimate of 17 analysts in a Bloomberg News survey.

“We did see gasoline demand numbers fairly week,” CWA’s Hassall said. “In absolute terms inventories are still high, it’s not unexpected to see a decline in U.S. crude stocks.”

The dollar fell amid speculation the European Central Bank may act to stabilize the region’s debt markets.

Oil Demand

The Organization of Petroleum Exporting Countries yesterday left its forecast for world oil demand in 2010 at 85.37 million barrels a day, unchanged from the May estimate. The Energy Department cut its outlook for 2010 global oil consumption this week to 85.51 million barrels a day from 85.55 million last month. The Paris-based International Energy Agency will publish its outlook today.

OPEC said in its monthly report yesterday it will need to pump less crude than previously thought this year as output from non-OPEC countries increases more than forecast.

The group, which produces about 40 percent of the world’s oil, estimated members will need to pump 28.77 million barrels of oil a day to satisfy demand for the year, according to its monthly oil report. That’s about 70,000 less than last month’s projection.

The United Nations Security Council voted yesterday to impose new sanctions on Iran, OPEC’s second-largest oil producer, that restrict financial transactions, tighten an arms embargo and authorize the seizure of cargo linked to its nuclear or missile programs.

Brent crude for July delivery dropped as much as 42 cents, or 0.6 percent, to $73.85 a barrel on the ICE Futures Europe exchange, and was at $73.88 at 8:55 a.m. Singapore time. Yesterday, the contract gained $1.97, or 2.7 percent, to settle at $74.27.

Soybeans Rally as U.S. May Cut Stockpile Forecast; Corn Gains

2010-06-10T09:54:00.001+08:00

June 9 (Bloomberg) -- Soybeans rose for the first time in four sessions on speculation that inventories will be tighter than expected in the U.S., the world’s largest grower and exporter. Corn also rallied.

The U.S. Department of Agriculture probably will cut its forecast of domestic stockpiles by more than 3 percent in a report tomorrow, according the average of estimates in a Bloomberg survey of 28 analysts. Corn growers in the U.S., the world’s largest producer, may be withholding supplies after prices dropped yesterday to an eight-month low.

“Soybeans are running tight,” said Jerod Leman, a broker at Wellington Commodities in Carmel, Indiana. “Even some smaller elevators are hanging on to supplies now. Given the crop conditions in corn and soybeans, farmers are holding a lot of grain right now.”

Soybean futures for July delivery rose 12.5 cents, or 1.3 percent, to $9.435 a bushel on the Chicago Board of Trade, the first gain since June 3. The price is down 12 percent in the past year, partly because of increased production in Argentina and Brazil, the largest exporters behind the U.S.

China, the world’s biggest consumer of cooking oils, purchased U.S. soybean oil, two traders with direct knowledge of the transaction, said today. China may have bought 100,000 metric tons of the oil, anticipating the U.S. will start certifying shipments to comply with Chinese regulations, said the traders, declining to be identified because the information isn’t public.

The U.S. government today confirmed sales of 40,000 tons of soybean oil to the Asian nation for delivery before Sept. 30

Corn futures for July delivery rose 1 cent, or 0.3 percent, to $3.3825 a bushel on the CBOT, the second straight gain. The price has slipped 18 percent this year, in part because of rising supplies.

Corn is the biggest U.S. crop, valued at $48.6 billion in 2009, followed by soybeans at $31.8 billion, government figures show.

FCPO 10th June Daily Market Commentary

2010-06-09T18:20:00.001+08:00

FCPO 3rd month Aug futures contract fall RM14 lower to close at RM2418 levels as compare to previous trading sessions with a total of 14,247 lots traded in the market. FCPO price was traded wild during trading sessions as price traded from RM2438 towards lowest at RM2402 but recovered highest at RM2432 regions despite soybean oil and crude oil were trade firm during overnight and electronic trading.
FCPO price plunge and reach 100% Fibonacci support levels at RM2406 region before starts to rebound towards RM2432 regions; 38.2% Fibonacci resistance levels in the hourly price chart. Technically, FCPO price trading would further affirm riding on bear rally once support levels at RM2410 and RM2393 fails to hold up against the selling pressure in the coming trading sessions. However, FCPO price must strictly not trading above resistance levels at RM2457 and RM2484 in order to further affirm FCPO price trading south in the coming trading session.

FKLI 10th June Market Commentary

2010-06-09T18:19:00.001+08:00

FKLI June Futures contract traded 3.5 point higher to close at 1286 levels as compare to previous trading session to with a total of 4,727 lots traded in the market. FKLI settled marginally higher after attempt to penetrate higher high during trading sessions despite Dow Jones were settle lower during overnight trading while regional indices was not trading on the advantage of FKLI.
FKLI seems temporary holding well above support levels at 1282 regions before FKLI manage to test resistance levels at 1291 regions; 61.8% Fibonacci resistance levels in the hourly price chart. Technically, FKLI seems form a rounding top formation within range from 1284 to 1290 regions in the hourly price chart. This suggests FKLI currently undergo critical stage where any break out from the price range shall lead to trend trading. Next nearest support was seen at 1282 and 1269.5 while nearest resistance levels was seen at 1291 and 1307 regions.

Oil Gains a Second Day as Industry Report Shows Supply Decline

2010-06-09T09:01:00.001+08:00

June 9 (Bloomberg) -- Oil rose for a second day as confidence among U.S. small businesses rose and an industry- funded report showed a drop in the country’s crude supplies, bolstering optimism about the strength of the economic recovery.

Oil gained after the National Federation of Independent Business’s optimism index increased to 92.2 last month, the highest level since September 2008. The American Petroleum Institute said crude inventories dropped 4.54 million barrels last week. An Energy Information Administration report today will probably show that stockpiles fell 900,000 barrels, according to a Bloomberg News survey.

“There is some optimism with the macro data, especially in the U.S.,” Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne, said by telephone “The last few weeks there’s been decent draws in the oil inventories in the U.S. and so the EIA data will be important to see if that trend continues.”

Crude oil for July delivery gained 48 cents, or 0.7 percent, to $72.47 a barrel in electronic trading on the New York Mercantile Exchange at 10:09 a.m. in Sydney. Yesterday, the contract rose 55 cents, or 0.8 percent, to settle at $71.99.

Oil rose yesterday after Federal Reserve Chairman Ben S. Bernanke said that the improvement in the world’s largest energy-consuming country is “moderate paced.” The Standard & Poor’s 500 Index gained 1.1 percent following its biggest two- day slump since March 2009.

The Energy Department cut its oil price forecast for 2010 to an average $78.75 a barrel from $82.18 in its monthly Short- Term Energy Outlook, released yesterday. It reduced the outlook for oil consumption this year to 85.51 million barrels a day from 85.55 million last month.

Refinery Rates

U.S. refineries probably operated at 87.5 percent of capacity last week, unchanged from the previous week, according to the Bloomberg survey. Gasoline inventories fell 500,000 barrels from 219 million the week before.

Kuwaiti Oil Minister Ahmad Al-Sabah said yesterday that prices will probably average $70 for the rest of this year and that he considers current levels “acceptable.” Al-Sabah spoke to reporters in Kuwait’s parliament. Kuwait is OPEC’s third- largest oil producer after Saudi Arabia and Iran, based on Bloomberg estimates of May output.

The Organization of Petroleum Exporting Countries is scheduled to release its monthly market report today, and the Paris-based International Energy Agency is scheduled to publish its outlook tomorrow.

Brent crude for July delivery gained 18 cents, or 0.3 percent, to settle at $72.30 a barrel on the London-based ICE Futures Europe exchange yesterday.

Dollar Gains Toward Four-Year High Versus Euro on Rates Outlook

2010-06-09T08:59:00.000+08:00

June 9 (Bloomberg) -- The dollar gained toward a four-year high against the euro on speculation U.S. policy makers will reiterate that an economic recovery is gaining pace.

The euro weakened against 11 of its 16 most-traded counterparts as economists surveyed by Bloomberg forecast the European Central Bank will leave its key interest rate at a record low until the second quarter of 2011. The ECB next meets tomorrow. Federal Reserve Chairman Ben S. Bernanke testifies before a House Budget Committee today after saying June 7 in Washington that the central bank will raise rates before the economy returns to full employment. The yen rose as Asian stocks fell, spurring demand for the safest assets.

“The Fed will be tightening before the ECB with the U.S. economy recovering at a faster pace,” said Adam Carr, a senior economist at ICAP Australia Ltd. in Sydney. “Both those things are dollar supportive.”

The dollar gained to $1.1946 per euro as of 9:35 a.m. in Tokyo from $1.1973 in New York yesterday. It climbed as high as $1.1877 per euro on June 7, the strongest since March 2006. The dollar bought 91.35 yen from 91.46. The yen rose to 109.12 per euro from 109.51 yesterday, when it fell 0.5 percent.

Kansas City Federal Reserve Bank President Thomas Hoenig said the U.S. is in a “modest, sustained” recovery in a speech in Kansas City. The Fed should begin to normalize policy with rates near zero “unsustainable,” he said.

The Fed’s benchmark interest rate has been in a range of zero to 0.25 percent since December 2008.

Fed Funds Rate

Hoenig’s view hasn’t shifted since the European debt crisis last month posed a risk to the U.S. recovery. He repeated that the funds rate should be raised to 1 percent by end September. Hoenig has voted against central bank statements, saying in April the “extended period” language limited the Fed’s “flexibility to begin raising rates modestly.”

Futures trading on the CME Group exchange showed a 32 percent chance the Fed will raise its target rate for overnight bank lending by at least a quarter-percentage point by its December meeting, down from 50 percent a month ago.

The pound fell versus most of its major peers after Fitch Ratings said yesterday the U.K.’s fiscal challenge is “formidable.”

Budget Cuts

Fitch suggested British Prime Minister David Cameron will need to speed up budget-deficit cuts to protect the U.K.’s top credit rating. Treasury estimates show government debt-interest costs reaching 70 billion pounds ($101 billion) in five years, up from 31 billion pounds in the last fiscal year.

“The scale of the United Kingdom’s fiscal challenge is formidable,” Fitch said in the first statement by a credit- rating firm on the U.K. since Cameron took office May 11.

The government will unveil an emergency budget June 22, outlining cuts to tackle a deficit that reached 11.1 percent of gross domestic product in the fiscal year through March.

The euro gained yesterday for the first time in four days against the dollar and yen on speculation the Swiss National Bank intervened to weaken the franc after it touched a record high versus Europe’s shared currency. The franc yesterday gained as much as 0.9 percent to 1.3746 per euro, a record. It traded at 1.3778 today.

‘Pushing Back’

“The euro’s abrupt rebound against the Swiss franc, coming around the end of the European trading session, suggests that Swiss officials might be pushing back by intervening to slow their currency’s rise,” said Joe Manimbo, a market analyst in Washington at Travelex Global Business Payments, a currency- exchange network.

A spokesman for the SNB, Werner Abegg, declined to comment. Central banks intervene by buying or selling currencies to influence exchange rates.

The euro-region’s debt crisis may prompt the European Central Bank to buy bonds as part of a so-called quantitative- easing program to spur the economy, HSBC Holdings Plc said.

“The ECB has been running ultra-loose policy now for more than one year, and I can only imagine we will take further steps toward increased government purchases,” Steven Major, London- based global head of fixed-income research at HSBC, said yesterday in a presentation in London. “The problem for the euro zone is that we just have too much debt.”

European finance ministers put the finishing touches this week to the European Financial Stability Facility, a fund backed by 440 billion euros ($525 billion) in national guarantees designed to halt the spread of the debt crisis that began in Greece.

FCPO 9th June Daily Market Commentary

2010-06-08T18:50:00.000+08:00

FCPO 3rd month Aug futures contract fall RM17 lower to close at RM2432 levels as compare to previous trading sessions with a total of 8,651 lots traded in the market. FCPO price traded lower as soybean oil and crude oil electronic trading were traded lower during trading sessions.
FCPO price plunge lower and penetrate support levels at RM2435 regions after failed in attempt to penetrate previous high at RM2456 levels technically, FCPO price seems penetrate previous support levels at RM2437; 78.6% Fibonacci support levels in the hourly price chart, further confirmation on correction wave to take in place while next nearest support levels seen at RM2425 and RM2406 regions. However, FCPO price must not trading above resistance levels at RM2457 and RM2484 in order for correction phase to remain intact on short term trading