Monday, May 6, 2013

Bail Out If You Short On FKLI. Not A Joke. 6th May 2013

Monday, 6th May 2013. I would not make this a conversation a long one, the daily limit fluctuation for FKLI is 20%, taken from Bursa website "20% per trading session for the respective contract months except the spot month contract. There shall be no price limits for the spot month contract. There will be no price limit for the second month contract for the final five Business Days before expiration." Other news to follow. 

"- U.S. stocks on Friday rose to record heights, with the Dow industrials soaring above 15,000 and the S&P 500 index above 1,600, as Wall Street celebrated the April jobs report. Up 1.8% from the week-ago close, the Dow Jones Industrial Average DJIA +0.96%hit a record intraday high of 15,009.59, before ending at a record close of 14,973.96, up 142.38 points.

After hitting an intraday record of 1,618.46, the S&P 500 SPX +1.05%gained 16.83 points to 1,614.42, giving it a 2% weekly gain."
"- Asian stock markets fell Thursday as weak economic data from the U.S. and China added to worries about global growth, hitting shares of commodity producers especially hard. The Shanghai Composite IndexHK:HSI +0.10%  fell 0.2% as the market reopened for the first time this week after the Labor Day holidays, while the Hang Seng Index HK:HSI +0.10%  dipped 0.3% in Hong Kong, which was also closed Wednesday.
Elsewhere in the region, Japan’s Nikkei Stock Average JP:NIK -0.76% dipped 0.8% for its fourth straight trading day of losses, while Australia’s S&P/ASX 200AU:XJO +1.30% shed 0.7%, and South Korea’s Kospi KR:SEU +0.81%  fell 0.3%."
"— Crude-oil futures rallied on Friday as a report showing that the U.S. economy created more jobs than expected in April raised the prospects for energy demand, lifting prices to their highest level in a month.Crude oil for June delivery CLM3 +1.46% climbed by $1.62, or 1.7%, to settle at $95.61 a barrel on the New York Mercantile Exchange. Oil futures closed at their highest since April 2 and scored a weekly gain of 2.8%, according to FactSet data."
"-May Soybeans finished up 14 at 1455, 16 off the high and 15 up from the low. July Soybeans closed up 15 at 1387 1/4. This was 15 1/4 up from the low and 12 1/2 off the high.
July Soymeal closed up 0.3 at 406.5. This was 0.9 up from the low and 7.3 off the high. July Soybean Oil finished up 0.78 at 49.27, 0.08 off the high and 0.83 up from the low. May soybeans traded higher on the day but the May/July calendar spread broke lower late in the session on rumors deliveries against the May contract might be made. Interior basis levels continue to be extremely firm on tight supply pipelines and light farmer sales as many begin planting in the eastern Corn Belt while the western states are shut down after an unusual, late season snow storm. Bull spreading was extremely active early in the session but the July/November spread broke lower late in the day on rumors out of Argentina. Many traders believe the US is close to importing soybeans or meal but no confirmation of this has been made. July soybean meal was higher today as US domestic crush margins remain favorable given the firm meal basis across the US and steady demand. Meal sales have already exceeded the USDA estimate for the 2012/13 marketing year but many worry that we simply do not have the soybeans in the US to fulfill the obligations."

 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.


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