Wednesday, January 2, 2013

Rock Steady Bulls 3rd Jan 2013

Thursday. 3rd Jan 2012. The year starts off with steady gains in futures market for both index futures and commodity in Bursa Derivative. Read further for the stories.

"- U.S. stocks surged on Wednesday, with the Dow industrials notching their largest first-session-of-the-year-point rise ever, as Wall Street welcomed an 11th-hour deal to avoid steep spending cuts and tax increases and pondered deficit moves still ahead. The Dow Jones Industrial Average DJIA +2.35%  rose 308.41 points, or 2.4%, at 13,412.55, with Hewlett-Packard Co. HPQ +5.40%  and Caterpillar Inc. CAT +4.34%  leading gains that included all of its 30 components.  The S&P 500 index SPX +2.54%  climbed 36.23 points, or 2.5%, to 1,462.42, with telecommunications the best performing of its 10 major industry sectors, all of which advanced."

"- Stocks in Hong Kong and Australia jumped to multi-month highs Wednesday as Asian markets began their 2013 journey on a buoyant note after the U.S. House of Representatives voted in favor of legislation to undo much of the fiscal cliff. Hong Kong’s Hang Seng Index HK:HSI +2.89%  rallied 2.9% to 23,311.98 and Australia’s S&P/ASX 200 AU:XJO +1.23%  gained 1.2% to 4,705.90, pushing both indexes to their highest finish since June 2011. South Korea’s Kospi KR:SEU +1.71%  jumped 1.7% and Taiwan’s Taiex XX:Y9999 +1.04%rose 1%."

"-Crude-oil futures rallied more than 1% Wednesday, gaining after U.S. policy makers passed a last-minute budget deal to avert the fiscal cliff of billions in spending cuts and tax hikes.

Crude for February delivery CLG3 -0.40%  rose $1.30, or 1.4%, to settle at $93.12 a barrel on the New York Mercantile Exchange."

"-January Soybeans finished down 13 1/4 at 1405 1/2, 38 3/4 off the high and 7 up from the low. March Soybeans closed down 16 1/2 at 1393. This was 6 3/4 up from the low and 42 off the high.
January Soybean Oil finished up 1.36 at 50.52, 0.6 off the high and 0.45 up from the low. March soybeans saw double digit losses on the day after the bear camp quickly sold into this morning's initial rally. Outside markets were mostly supportive with gains seen in crude oil, copper, and stocks. The US Dollar erased all of its earlier losses which helped to pressure grain markets. Soybean meal traded lower but oil saw sharp gains after Congress passed a $1 per gallon tax credit for biodiesel producers through 2013. Central and Southern Brazil continues to see light showers while the northeastern region is trending slightly drier. Argentina will dry down this week. Early harvest has begun in areas of Mato Grosso and early yields are reportedly near year ago levels but most expect improvement by the middle of January with some estimates coming in at 50 or more bushels per acre. Planting in Argentina was pegged at 82% last week, up 6 1/2% from the week prior. Some traders still view the current USDA estimates for production in Brazil and Argentina at 81 and 55 million tonnes respectively as a bit too high but given the mostly favorable weather, some traders are pushing Brazil production above 81 million tonnes.

FKLI- Some Intraday Retracement, Nothing Major Yet. 

Stock index and index futures went down lower as investors prefer to cover their Long positions after gaining since the past five weeks. Malaysia stocks fell the most in Asia after a rally by the benchmark index to a record on the last trading day in 2012 pushed valuations to a two-year high. Index futures closed slightly lower to 1,684 level while the KLCI Index declined 0.84 percent to 1,674.72 level, poised for its steepest slide in two months, and snapping five days of gains. The stock index reached a new high on Dec. 31 when it advanced 0.5 percent to 1,688.95. It was a great comeback for the stock index as speculation on government infrastructure spending will shelter the nation from Europe’s debt crisis and a global economic slowdown. The index’s gain last year is its fourth annual advance, the longest winning streak since 1989.  Demand for less risky assets is diminishing as confidence in global growth rises. The U.S. House of Representatives passed legislation averting income tax increases for most U.S. workers after Republicans abandoned their effort to attach spending cuts that would have been rejected by the Senate. On political side, Malaysian Prime Minister Najib Razak must dissolve parliament for elections by April 28. Najib cut income taxes, boosted pay for government workers and extended cash handouts for the poor in his 2013 budget announced in September,adding Malaysia debt ratios even higher. 

Daily Pivot Point
R2= 1693
R1= 1688
S1= 1680
S2= 1676

FCPO- Survive Previous Friday Retracement And Making Another Higher Low

Palm oil gained on speculation that heavy rainfall and flooding may hamper harvesting in Malaysia,
the second-largest producer, drawing down record stockpiles. The contract for March delivery jumped much as 1.4 percent to 2,472 ringgit ($814) a metric ton on the Malaysia Derivatives Exchange, before trading at 2,462 ringgit at 11:37 a.m. in Kuala Lumpur. Overall, the benchmark month lost about 23 percent last year as inventories in Malaysia climbed to an all-time high. On weather side, a heavy-rain warning was issued on Dec. 31 for several districts in the eastern states of Terengganu and Pahang, according to a statement on the Malaysian Meteorological Department’s website. The rainfall was expected to persist until today and cause floods over low-lying areas, the department said. According to the Malaysian Palm Oil Board. The two states accounted for about 18 percent of the country’s total crude palm oil output from January to November last year. Heavy rain fall is going to cause a disruption in the supply and also a disruption in the harvesting progress. All these event will likely reduce the stockpiles on the upcoming palm oil monthly report. Inventories in November reached a record 2.56 million tons, according to the palm oil board, which is scheduled to release data for December on Jan. 10. Technical side, the benchmark March is set to rally for another judging from the higher low candle formation formed on hourly chart. Not that alone, it manage to breached the psychological resistance level around 2,500 yesterday, marking keen interest by the Bulls to keep this positive momentum running till the end of this week. For today, pivot support for the March contract is located around 2,460 while resistance is pegged at 2,567.

Daily Pivot Point
R2= 2567
R1= 2535
S1= 2460
S2= 2417

 Disclaimer: Information and opinions contained in this report are for educational purposes only. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness.