Trading Tips for the day - 31 December 2014

FKLI will open lower today, for the first trade, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points from your entry point.  Close your position by the end of the day.

Trading Tips for the Day - 30 December 2014

FKLI will likely open very near to yesterday's close.  For the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market rose for the 8th consecutive day to highest level since 4 November. Buying followed reports of severe floodings continuing which may extend to the major producing state of Johore. Strong gains in CBT soyoil and China Dalian futures, led by the strength in palm oil, also underpinned sentiment. Prices gapped 58 to 33 higher in the morning and held steady in the afternoon.

It was all on monsoon rains and floodings. Production will definitely be lower than earlier estimates in December. Both Southern POMA and MPOA have reported big drops which may turn out bigger for the whole month as floods have not abated. Quality problems may also cause sellers to hold back. If demand maintains at previous months' pace, market strength is likely to continue. Higher India import duty is negative but is now secondary.

Technical view - prices rose above 2250 and 2286 resistance, continuing the up trend towards 2350. Overbought situation in the stochastic may see some pull back which would be buy opportunity.  Trend up ; RSI 65.13 ; stochastic overbought ; support 2250 / 2188 / 2150 / 2100 / 2083 ; resistance 2308 / 2345 / 2400.

Trading Tips for the Day - 29 December 2014

FKLI will likely open higher today.  For the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Trading Tips for the Day - 26 December 2014

FKLI will likely open a little higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Trading Tips for the Day - 24 December 2014

FKLI will likely open higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Trading Tips for the Day - 22 December 2014

FKLI will likely open higher today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market closed higher for the 4th consecutive day. Buying was encouraged by the good 1-20 December exports, higher CBT soyoil and China Dalian futures, and strong gains in crude mineral oil. Lower 1-20 December production reported by Southern POMA and the weaker ringgit were also supportive. Gains were however, capped by some liquidation for the year end and less appetite for new positions. Prices were 21 higher to 1 lower in the morning and were firmer in the afternoon, trading mostly around 12 to 17 higher.

Most factors are positive as we approach the year end. The higher 1-20 December exports, which may extend to 1-31 December will confirm a substantial drop in stocks. Production in December may turn out lower than earlier estimates with the current bad floodings in the east coast states and the major producing state of Johor. However, concerns over weakness in crude mineral oil, which will affect use for energy, and the uncertain global economy may keep support cautious.

Technical view - prices remain in a sideway trading range of 2100 - 2200. trend sideways ; RSI 49.38 ; parabolic SAR at 2112 ; support 2100 / 2083 / 2064 / 2000 ; resistance 2216 / 2250 / 2286.

Trading Tips for the Day - 19 December 2014

FKLI will open higher today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points and put a stop 5 points away from your entry point.  Close your position by the end of the day. 

Trading Tips for the Day - 18 December 2014

FKLI will likely open higher today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the trading day.

As for FCPO, market closed slightly higher yesterday after choppy trading on either sides of the previous day's close. Market eroded in the morning following lower CBT soyoil, China Dalian futures and crude mineral oil. Quiet cash market also undermined sentiment. Better buying came in the afternoon, led by bottom picking. Short covering added support. Prices were 3 to 18 lower in the morning and rose to 15 higher in the afternoon.

The better close yesterday showed that sentiment is not so bearish. Market was weighed down by negative effect from very weak crude mineral oil, which may see reduced use for biodiesel.

However, palm oil fundamentals are supportive. Lower production and stocks are expected through February. Think the crude mineral oil downside is limited and palm oil is likely to trend positively in the coming weeks.

Technical view - prices are still in the 2100 - 2200 trading range, with a slightly negative bias. Trend sideways ; RSI 42.44 ; parabolic SAR at 2103 ; support 2100 / 2083 / 2064 / 2000 ; resistance 2155 / 2216 / 2250 / 2286.

Trading Tips for the Day - 17 December 2014

FKLI will likely open lower, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market eroded to 2-week low yesterday. Selling followed continuing big drop in crude mineral oil, which traded about USD1.50 lower in Asian trade. Lower CBT soyoil and China Dalian futures added weight. Technical sell stops below 2150 magnified losses. Reports of sharply lower Southern POMA 1-15 December production were ignored. Prices gapped 20 to 35 lower in the morning and eroded to 57 lower in the afternoon.

Negative outside factors dominated sentiment yesterday. Crude mineral oil continued to show weakness, China's manufacturing sector contracted in December with PMI falling to 49.5, Russia hiked key interest rate by 6.5 pct to 17 pct to support her rouble, Asian equities market continued to erode and forecast of weak global economy etc. However, palm oil fundamentals are supportive with sharply lower production in December and likelihood of lower stocks.

Technical view - the break below 2150 was slightly negative and may carry prices to test 2100 support.  Trend sideways ; RSI 40.70 ; parabolic SAR at 2100 ; support 2100 / 2083 / 2064 / 2000 ; resistance 2155 / 2216 / 2250 / 2286.

Trading Tips for the Day - 16 December 2014

FKLI will likely open a little lower, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market closed lower today after choppy trading session. Better sellers came at close. Selling was tied to bearish sentiment following the very weak crude mineral oil. Concerns over global economic growth, amid broadly lower Asian equities markets today, also undermined sentiment.

Market rose in early trading with support from higher CBT soyoil. Export numbers for 1-15 December were within estimates and did not have much effect. Prices were 17 higher to 17 lower in the morning and were 12 higher to 9 lower in the afternoon. There were no fresh factors. Market remained generally sideways. Weak crude mineral oil will affect demand from the biodiesel and fuel sectors. Lower production in the coming months usually provides seasonal support as stocks deplete. Fresh developments are needed for market to break out from current sideway range.

Technical view - prices are holding within the sideway trading range of 2100 - 2200 with a slightly positive bias. Trend sideways ; RSI 46.90 ; support 2140 / 2100 / 2083 / 2064 ; resistance 2216 / 2250 / 2286.

Trading Tips for the Day - 15 December 2014

FKLI will likely open lower, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Trading Tips for the Day - 12 December 2014

FKLI will likely open lower today.  For the first trade, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Trading Tips for the Day - 11 December 2014

FKLI will likely open lower today, for the first trade, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Trading Tips for the Day - 10 December 2014

FKLI will open a little lower today, for the first trade, one can attempt to Long 1-3 below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

For FCPO, market closed sharply lower yesterday on better sellers in the afternoon. Selling followed rumours of low 1-10 December exports. There was early selling pressure from lower CBT soyoil, China Dalian futures and crude mineral oil. Technical weakness as prices broke below 2150 added losses. Firmer ringgit, which gained about 0.3 pct vs USD, was also negative but largely ignored.

Prices were 3 to 27 lower in the morning and eroded to 52 lower in the afternoon. Market will be looking towards the export numbers from the cargo surveyors and the MPOB November data for incentives tomorrow. Rumoured that the 1-10 December exports will be about 15 pct lower vs a month ago. This will point to slow demand and also raised concerns about higher stocks towards year end. The MPOB data is not expected to have much impact as increasing stocks are expected in both the Reuters and Bloomberg's polls. Meanwhile, weakness in crude mineral oil and easier CBT soyoil may keep the short term trend negative.

Technical view - the break below 2150 continues the negative trend. Prices may test the 2100 support.  Trend down ; RSI 40.42 ; parabolic SAR 2208 ; support 2100 / 2083 / 2064 ; resistance 2200 / 2250 / 2286.

Trading Tips for the Day - 9 December 2014

FKLI will open lower today, for the first trade, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 point away from your entry point.  Close your position by the end of the trading day.

For FCPO, weakness in the ringgit, which lost more than 0.8 pct vs USD, carried market higher early. Late selling closed market about unchanged. Early support was also encouraged by higher CBT soyoil and China Dalian futures. Gains were capped by erosion in crude mineral oil which fell USD 0.70 - 0.90 in Asian trade. Protection against negative MPOB data for November to be reported on 10 December, saw better selling late in the session. Prices gapped 13 to 32 higher in the morning and eased steadily lower in the afternoon.

Fresh incentives were lacking. Market was trading on outside factors today with the weak ringgit being balanced by weak mineral oil. MPOB November data is expected to report higher stocks but estimates of lower production gives forecast of stocks declining in coming months. USDA supply - demand report on 10 December is also likely to show a record high soyabean crop but demand, especially from China, has been robust. In anycase, expect the short term trend to be negative.

Technical view - prices did not break the 2200 resistance, keeping trend negative.  Trend down ; RSI 45.94 ; parabolic SAR 2208 ; support 2150 / 2100 / 2064 ; resistance 2200 / 2250 / 2286.

Trading Tips for the Day - 8 December 2014

FKLI will likely open lower, for the first trade, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market closed slightly higher Friday after trading on either sides of the previous day's close.  Trading was erratic with prices doing almost a full circle. There was support at the opening following a weak ringgit which lost about 0.7 pct vs USD. Lower China Dalian futures and crudemineral oil capped gains. Bloomberg's poll of sharply higher end November stocks pressured market lower. Late weekend short covering saw some recovery towards close. Prices were 11higher to 12 lower in the morning and 13 lower to 7 higher in the afternoon.

Prospects of typhoon hitting Philippines and rising lauric oils prices in coming days probably underpinned sentiment. Forecast of continuing weakness in the ringgit added support. However, there are no changes in the short term negative fundamentals. Both Bloomberg and Reuters pollsshowed sharply higher stocks are expected in the MPOB November data on 10 December. USDA is also likely to report large soyabean supplies in their supply-demand reports also on 10 December. No end in sight yet on weakness in crude mineral oil. Unless export demand improves, downside prospects are better.

Technical view - prices continue to hold the 2100 - 2200 trading range.  Trend down ; RSI 46.08 ; parabolic SAR 2219 ; support 2150 / 2100 / 2064 ; resistance 2200 / 2250 / 2286.

Trading Tips for the Day - 5 December 2014

FKLI will likely open a little lower, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Trading Tips for the Day - 3 December 2014

FKLI has opened slightly lower.  Today is going to be a volatile day like yesterday.  One can attempt to Short at around 1780 and try take profit of 5-7 points profit.  Put a stop loss 5 points away.  Close your position by the end of the day.

 As for FCPO, market recovered some of Monday's losses. Buying was encouraged by a rebound in crude mineral oil which also carried CBT soyoil higher. China Dalian futures were also traded higher from the limit down prices yesterday. Short covering tied to profit taking, added gains. Ringgit gained about 0.3 pct vs USD but had little effect. Prices were 20 to 34 higher in the morning and held steady to firmer in the afternoon.

Crude mineral oil may remain in focus if its weak trend continues. There are not much changes in palm oil and the global vegetable oils fundamentals. Seasonal decline in production through February provides better incentives for support in the coming months. Lower global supplies of sun oil and rapeseed oil are also supportive. However, the big US soyabean crop and prospect of smaller use for energy are negative.

Technical view - prices are pulling back from big drop the past 3 days. Indicators remain negative.  Trend down ; RSI 41.36 ; stochastic recovered from oversold ; support 2100 / 2064 / 2000 / 1950 ; resistance 2150 / 2200 / 2250 / 2286.

Trading Tips for the Day - 2 December 2014

FKLI will open higher today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Trading Tips for the Day - 1 December 2014

FKLI will likely open lower, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Trading Tips for the Day - 28 November 2014

FKLI will open near yesterday's close, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close you position by the end of the day.

For FCPO, market eroded yesterday on steady selling throughout the session. Selling was prompted by weakness in crude mineral oil, which lost more than USD1.00 in Asian trade, and firmer ringgit. Negative sentiment towards estimates of lower November exports and higher stocks against a month ago undermined support. Cash market was also quiet. Prices were 4 to 23 lower in the morning and eroded to 41 lower in the afternoon.

Forecast of continued weakness in crude mineral oil raised concerns over demand from the biodiesel and fuel sector. This is negative especially with increased global vegetable oils production in the coming months. Traders will be following comments from market analysts at the current Indonesia conference for incentives. However, expect them to maintain their projections made at the POTS Kuala Lumpur conference just a month ago.

Technical view - prices continuing within the sideway trading range of 2180 - 2300.  Trend sideways ; RSI 46.99 ; support 2187 / 2165 / 2100 ; resistance 2286 / 2345 / 2400.

Trading Tips for the Day - 27 November 2014

FKLI will likely open near yesterday's close, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market closed higher yesterday on good support late in the session. Buying was tied to positive sentiment and expectations that market analysts at a conference in Indonesia will maintain their earlier positive outlook. Market was erratic early with firmer CBT soyoil and China Dalian futures supporting. But a weaker close in China Dalian futures prompted some selling in the early afternoon. Lower crude mineral oil also undermined support. Prices were 10 higher to 6 lower in the morning and 11 lower to 26 higher in the afternoon.

Market will be looking towards the Indonesian conference, starting tomorrow, for some incentives. It is likely that the market analysts will maintain their forecast for higher prices in the coming months although current weakness in crude mineral oil may be of some concern. Generally, sentiment is expected to follow the seasonal strength of lower production through February. However, the prospect of higher end November stocks may bring some cautiousness.

Technical view - prices are moving back into the sideway trading range. An effective break above 2300 or below 2180 may see the next major move.  Trend sideways ; RSI 53.13 ; support 2187 / 2165 / 2100 ; resistance 2286 / 2345 / 2400.

Trading Tips for the Day - 26 November 2014

FKLI will likely open very near to yesterday's close, for the first trade today, one can attempt to Short 1-3 point above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, erratic market yesterday with prices closing higher after falling near to one month low early. There was good support early following strong gains in CBT soyoil and slightly better than expected 1- 25 November exports. Reports of higher 1-20 November production by MPOA prompted strong selling. Lower China Dalian olein futures and technical sell stops below 2200 magnified losses. Gradual recovery came in the afternoon as sentiment towards seasonal strength took over. Prices were 15 higher to 18 lower in the morning and 18 lower to 18 higher in the afternoon.

The higher MPOA production report was a surprise. Full November month production may now be only slightly lower vs October considering some floodings currently affecting the east coast states. This will result in higher end November stocks, contrary to earlier expectations. However, expect seasonal strength to dominate sentiment in the coming months as production declines amid the prospect of floodings due to current rainy weather.

Technical view - the good recovery from below 2200 is slightly positive.  Trend sideways ; RSI 49.52 ; support 2187 / 2165 / 2100 ; resistance 2286 / 2345 / 2400.

Trading Tips for the Day - 25 November 2014

FKLI will likely open lower today, for the first trade, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market eroded to one week low today after a higher opening found strong sellers. Selling was tied to ideas of slow demand. Estimates are for lower 1-25 November exports to be reported by cargo surveyors tomorrow. Firmer ringgit also undermined sentiment early. Steadiness in CBT soyoil, China Dalian futures and crude mineral oil gave little effect. Prices were 4 higher to 23 lower in the morning and extended losses to 35 lower in the afternoon.

In the absence of fresh factors, some focus is turning towards export numbers. There are reports of slow demand with quiet cash market. However, fundamentals are generally more positive with lower production expected through February. Supplies of other vegetable oils i.e. sun oil, canola oil etc are also forecast to be lower in coming months. Meanwhile, some attention will be drawn towards the conference in Indonesia this week.

Technical view - prices testing 2200 support which if broken will be negative.  Trend sideways ; RSI 47.56 ; support 2193 / 2165 / 2100 ; resistance 2286 / 2345 / 2400.

Update at 11.31 am : ITS Malaysia palm oil export for November 1-25 fell 2.9%.

Trading Tips for the Day - 24 November 2014

FKLI will open slightly higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the trading day.

Trading Tips for the Day - 20 November 2014

FKLI will likely open near yesterday's close, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points from your entry point.  Close your position by the end of the day.

Trading Tips for the Day - 19 November 2014

FKLI will open higher today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market rose yesterday on better positive sentiment. Strong buying came in the afternoon as fresh sellers were lacking and China Dalian futures recovered most of its early losses. Higher crude mineral oil and weaker ringgit, which eased about 0.25 pct vs USD, were also supportive. Prices were 4 higher to 5 lower in the morning and rose gradually to 24 higher in the afternoon.

In the absence of fresh factors, expectation of seasonal strength from lower production in the coming months is encouraging support. Steadiness in CBT soyoil and China Dalian futures added to the positive sentiment. However, the lower exports and relatively weak crude mineral oil are of concern and likely to check gains.

Technical view - prices continue to hold within the 2200 - 2350 trading range. Trend sideways ; RSI 54.92 ; support 2193 / 2165 / 2100 ; resistance 2257 / 2286 / 2345 / 2400.

Trading Tips for the Day - 14 November 2014

FKLI will likely open a little lower, for the first trade today one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Trading Tips for the Day - 13 November 2014

FKLI will likely open a little higher, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, better selling towards close settled market lower yesterday. Selling was prompted by lack of fresh bullish factors and talks of slower export demand. Stronger ringgit, which gained about 0.35 pctvs USD, added weight. Market rose to one week high early following strength in CBT soyoil and China Dalian futures. Prices were 21 to 5 higher in the morning and eased gradually to 8 lower in the afternoon.

There is no change in fundamentals. Bulls will continue to look towards seasonal drop in production and likelihood of rain and floods in coming months. Bears are pointing towards the bumper US soybean crop and prospect of record high South American production as well. Ringgit is unlikely to be a major factor with most expectations for 3.30 to 3.35 range vs USD. Export demand is likely to be the primary factor.

Technical view - prices moved into wide trading range of 2200 - 2350 with a positive bias.  Trend up ; RSI 56.68 ; support 2193 / 2165 / 2100 ; resistance 2300 / 2345 / 2400.

Trading Tips for the Day - 12 November 2014

FKLI will likely open very near to yesterday's close.  For the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

For FCPO, market closed higher again yesterday on strong support late in the session. Buying was tied to positive sentiment towards seasonal strength in the coming months. Weak ringgit, which lost about 0.5 pct vs USD today, lent support. Sentiment was also underpinned by steadiness in CBTsoyoil and China Dalian futures. Market traded on either sides of the previous day's close earlierdue to absence of fresh factors. Prices were 12 higher to 13 lower in choppy morning trade and rose from 7 lower to 33 higher in the afternoon.

It is mainly bullish sentiment towards lower production and possible flooding in the coming months. Prospects of lower global sun oil and rapeseed oil supplies are also supportive. However, the bumper US soyabean crop and weakness in crude mineral oil may keep support cautious. Improved weather for the South American soyabean crop is also negative. In anycase, think export demand will be the main factor in the coming weeks.

Technical view - the break above 2250 is positive. Prices are continuing the broad range major up trend.  Trend up ; RSI 57.64 ; stochastic turned up from oversold ; support 2193 / 2165 / 2100 ; resistance 2300 / 2345 / 2400.

Trading Tips for the Day - 11 November 2014

FKLI will likely open a little higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, mrket closed sharply higher yesterday after trading within the previous day's range. Buying was encouraged by the higher than expected 1-10 November exports and prospects of lower production through February. Higher close in China Dalian futures, e-CBT soyoil and crude mineral oil also underpinned sentiment. Technical correction from the oversold stochastic added support. Gains were however, checked by firmer ringgit which rose about 0.5 pct vs USD. Prices were 1 to 18 higher in the morning and 5 to 45 higher in the afternoon.

MPOB data for October was neutral to slightly negative but was discounted. More emphasis is turning towards the prospect of seasonal declining production and stocks in the coming months. This was enhanced by the relatively good 1-10 November exports. Likelihood of heavy rain and floodings will also be supportive. Market outlook is more positive for the coming months.

Technical view - prices correcting from the oversold stochastic. Ability of prices to hold above 2200 will be positive.  Trend s/t down ; RSI 54.43 ; stochastic oversold ; support 2193 / 2165 / 2100 ; resistance 2250 / 2300 / 2345 / 2400.

Trading Tips for the Day - 10 November 2014

FKLI will likely open near Friday's closing, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, Strong selling on Friday afternoon closed market lower for the 4th consecutive day. Selling was led by protection against the MPOB October data on Monday and estimates of lower 1-10 November exports. Long liquidation and technical considerations added weight. Similar to yesterday, market was supported in the morning following higher China Dalian futures and weaker ringgit, which lost about 0.3 pct vs USD. Prices were 30 to 13 higher in the morning and eroded to 29 lower in the afternoon.

Market is correcting from the very strong run up last week, which now seems to be not backed by fundamentals. The MPOB is expected to report higher end October stocks on Monday. Of more importance will be exports, where most estimates are lower against a month ago. However, lower production and the likelihood of floods in the coming months are supportive.

Technical view - the break below 2200 is negative. Prices may drop to 2100.  Trend s/t down ; RSI 48.84 ; parabolic triggered a "sell" signal below 2209 ; stochastic oversold ; support 2193 / 2165 / 2100 ; resistance 2250 / 2300 / 2345 / 2400.

Trading Tips for the Day - 7 November 2014

FKLI will likely open a little higher today, for the first trade one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Trading Tips for the Day - 6 November 2014

FKLI will likely open higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the trading day.

Trading Tips for the Day - 5 November 2014

FKLI will likely open higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

For FCPO, market closed lower yesterday, snapping 5 consecutive days of gains. Selling was prompted by erosion in CBT soyoil and China Dalian futures. Weakness in crude mineral oil also undermined sentiment. Ideas that market was due for correction from the overbought situation added pressure. Losses were held by weaker ringgit, which lost about 0.3 pct vs USD today. Prices were 28 to 9 lower in the morning and extended losses to 43 lower in the afternoon.

There are no changes in fundamentals. Market likely correcting from the technically overbought situation with impetus provided by erosion in CBT soyoil and weakness in crude mineral oil. However, forecast for floods towards end November and historical strength in the 1st quarter are likely to keep market supported and limit the downside.

Technical view - prices correcting from the overbought RSI and stochastic. No change in positive indicators. Trend up ; RSI 67.55 ; stochastic overbought ; support 2265 / 2220 / 2165 / 2100 ; resistance 2345 / 2400 / 2450 / 2511.

Trading Tips for the Day - 4 November 2014

FKLI has opened higher today, for the first trade, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FPO, strong run up continued for the 5th consecutive day. Market rose to fill the price gap left on 14 July. Support followed good gains in CBT soyoil and higher China Dalian futures. Weak ringgit, which lost about 0.9 pct vs USD today, also encouraged buying. Short covering magnified gains.

Prices were 3 to 23 higher in the morning and extended gains to 39 higher in the afternoon. The continued strength in CBT soyoil, inspite of a bumper US soyabean crop now in harvest, is adding to the bullish sentiment. Weather concerns in South America is also supportive. An outside factor is the ringgit, which if weaken further, will be positive on prices. Together with seasonally lower production in the coming months, there are better incentives for support.

Technical view - prices continuing the strong uptrend to 2400. The RSI and stochastic are overbought and are due for some downward corrections. trend up ; RSI 73.75 ( overbought ) ; stochastic overbought ; support 2310 / 2265 / 2220 / 2165 / 2100 ; resistance 2345 / 2400 / 2450 / 2511.

Trading Tips for the Day - 3 November 2014

FKLI will open higher today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the trading day.

For FCPO, market continued its uptrend to close at its highest level since 18 July. Buying was encouraged by
confirmation of good pick up in the 1-31 October exports and forecast of lower end December stocks by MPOB. Higher close in China Dalian futures was also supportive. Market was slightly lower early on the overbought situation which found good support. Prices were 6 lower to 17 higher in the morning and rose to 31 higher in the afternoon.

The good export numbers are giving better incentives for buying. With lower than expected stocks in October, seasonal strength from declining production in the coming months will impose on market. An outside bullish factor is the prospect of flooding from rainy weather. However, weakness in crude mineral oil, uncertain global economy and big supplies of soyabean may cap the upside.

Technical view - the break above 2300 may carry prices to 2400. Indicators remain positive. The overbought situation in both RSI and stochastic may see some correction which is a buy opportunity.  Market continued its uptrend to close at its highest level since 18 July.  Trend up ; RSI 71.11 ( overbought ) ; stochastic overbought ; support 2265 / 2220 / 2165 / 2100 ; resistance 2310 / 2345 / 2400.

Trading Tips for the Day - 31 October 2014

FKLI will open higher today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Trading Tips for the Day - 30 October 2014

FKLI will likely open very near to yesterday's closing price, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market rose to its highest level since 8 August on continued strong support. Buying was encouraged by sharply higher CBT soyoil and China Dalian futures. Short covering and technical buy stops above 2250 added gains. The slightly positive projections from the market analysts at the POTS KL Conference also underpinned sentiment. Prices gapped 23 to 8 higher in the morning and rose steadily to 54 higher in the afternoon.

Are the lows behind us? Historical trend usually show market climbing after October as production starts to drop. Rainy weather and floods also contribute to the positive trend. However, current fundamentals are not bullish. Exports have been just average and stocks will likely increase. The rainy weather and flood situation are uncertain at the moment. In any case, the market analysts' projections of higher prices in the first quarter probably affected sentiment.

Technical view - prices rose above 2250, continuing the uptrend to 2300.  Trend up ; RSI 66.80 ; stochastic overbought ; 5-day MA intersected 20-day MA from below ; macd intersected trigger line from below ; support 2220 / 2165 / 2100 / 2065 ; resistance 2300 / 2345 / 2400.

Trading Tips for the Day - 29 October 2014

FKLI will likely open a few points higher, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market rose to its highest level in nearly 3 weeks yesterday on firmer cash market and better sentiment. Technical considerations and short covering as prices rose above 2200 added gains. Reports by Southern POMA of lower 1-25 October production was also supportive. Fresh sellers were lacking. Lower CBT soyoil had little effect. Prices were 5 to 28 higher in the morning and rose to 50 higher in the afternoon.

Sentiment was also boosted by reports that Malaysia will increase its biodiesel mandate from 5 pct to 7 pct in stages from November onwards. The prospect of coming monsoon rains disrupting production and the seasonally declining production in the coming months were also supportive.

However, the likelihood of stocks increasing in October and bigger global vegetable oils supplies are negative and will check gains.

Technical view - the rise above 2200 is positive. An effective break above 2223 will extend the upside to 2300.   Trend sideways to higher ; RSI 60.75 ; parabolic triggered a "buy" signal above 2194 ; stochastic slightly overbought ; 5-day MA intersected 20-day MA from below ; macd intersected trigger line from below ; support 2140 / 2100 / 2065 / 2000 ; resistance 2223 / 2250 / 2300.

Trading Tips for the Day - 28 October 2014

FKLI will likely open a few points lower, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Trading Tips for the Day - 27 October 2014

FKLI will likely open a few points higher today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market rose to a 2-week high Friday on better support in the morning. Buying was encouraged by strong gains in CBT soyoil and higher China Dalian futures. Firmer cash market added support. Gains were capped by rumours of lower 1-25 October exports and weekend profit taking. Softer close in China Dalian futures and lower crude mineral oil in Asian trade also undermined sentiment. Prices were 11 to 24 higher in the morning and eased to 2 higher in the afternoon.

Export numbers by the cargo surveyors will provide incentives in the coming week. Rumoured that the 1-25 October exports are at an average pace which should be neutral. Traders will also be looking towards the market analysts projections at the POTS KL Conference on 28 / 29 October for some direction. Fundamentally, there are no changes.

Technical view - prices moved into a 2200 - 2100 trading range with a slightly positive bias.  Trend sideways ; RSI 56.49 ; parabolic SAR at 2194 ; support 2140 / 2100 / 2065 / 2000 ; resistance 2223 / 2250 / 2300.

Trading Tips for the Day - 24 October 2014

FKLI will open higher today with Dow Jones closing more than 200 points up.  For the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the trading day.

As for FCPO, market rose yesterday on good support throughout the session. Buying was encouraged by gains in CBT soyoil and China Dalian futures over the Deepavali holiday. Higher cash market and ideas of good demand were also supportive. Technical buying as prices broke above 2150 added gains. Prices were 12 to 33 higher in the morning and extended gains to 47 higher in the afternoon.

Good support today reflected better sentiment. Buyers were probably looking towards seasonal 1st quarter strength as production comes off after October. However, fundamentals look negative. Stocks will likely increase in October unless exports improve substantially. A bumper US soyabean crop is now under harvest. Crude mineral oil is weak as well as the global economic outlook.

Technical view - the break above 2150 is slightly positive. Prices may rise to 2200. Trend turning sideways ; RSI 54.66 ; parabolic SAR at 2196 ; support 2140 / 2100 / 2065 / 2000 ; resistance 2223 / 2250 / 2300.

Trading Tips for the Day - 23 October 2014

FKLI will likely open very near to Monday's close, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the trading day.

As for FCPO, market closed slightly higher Monday after narrow range trading on either sides of the previous day's close. Buying was encouraged by firmer cash market and ideas of improving demand. Fresh sellers were lacking. Lower CBT soyoil opened market slightly lower. Prices were 6 lower to  8 higher in the morning and 4 lower to 10 higher in the afternoon.

Fresh incentives were lacking. Fundamentals are negative with end stocks likely to increase unless exports improve substantially. The Southern POMA October production report points to better production than earlier estimates. CBT soyabean / soyoil will remain under pressure from better weather for harvesting. However, market is trading in the seasonally strong 1st quarter months where sentiment is generally positive.

Technical view - prices moved sideways into a 2100 - 2150 range. Indicators remain negative.

Trading Tips for the Day - 21 October 2014

FKLI will open a few points higher today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry price.  Close your position by the end of the day.

For FCPO, market closed lower yesterday following weakness in CBT soyoil and China Dalian futures. Quiet cash market also undermined support. Losses were held by the better than expected 1-20 October exports which showed improved export pace. Prices were 30 to 12 lower in the morning and 21 to 10 lower in the afternoon.

Generally most factors remained negative. The October exports are expected to be lower vs September. Although production is currently projected to be slightly lower, stocks are likely to increase. The good weather in the US will also likely put CBT soybean / soyoil under some harvest pressure. Weakness in crude mineral oil is also negative. Meanwhile there are concerns that the current dry weather in Brazil may see a lower soybean crop than earlier estimated.

Technical view - indicators remain negative with prices continuing within the downtrend channel. Prices may move to 2050.  Trend down ; RSI 47.42 ; support 2100 / 2065 / 2000 ; resistance 2150 / 2223 / 2250 / 2300.

Trading Tips for the Day - 20 October 2014

FKLI will open higher as Dow Jones closed more than 200 points up on Friday.  For the first trade today, one can attempt to Short 2-4 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the trading day.

For FCPO, market recovered from the past 2 days of losses to close higher Friday. Buying was encouraged by gains in CBT soyoil and a rebound in crude mineral oil. Weekend profit taking and some technical correction from the oversold stochastic added support. Gains were however, checked by easier China Dalian futures. Prices were 9 to 26 higher in the morning and extended gains to 29 higher in the afternoon, holding steady throughout.

Export numbers will be the main factor in the coming weeks. Fundamentally, there are no changes in the weak global vegetable oils outlook. Generally, concerns over slowing demand is undermining support. Bumper US soyabean crop, weak crude mineral oil and slow global economy are also discouraging. However, the prospect of declining production in the coming months may keep a floor under the market around current levels.

Technical view - no change in negative indicators. Prices may move to 2050. Trend down ; RSI 49.35 ; stochastic turned up from oversold ; support 2100 / 2065 / 2000 ; resistance 2150 / 2223 / 2250 / 2300.

Trading Tips for the Day - 17 October 2014

FKLI will likely open a few points lower, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

For FCPO, weakness in related outside markets closed prices lower again yesterday. Selling followed sharply lower CBT soyoil, crude mineral oil and China Dalian futures. Quiet cash market and ideas of slow demand undermined support. Sentiment was also affected by broad losses across the global equity markets. Technical considerations added pressure. Prices were 6 to 23 lower in the morning and extended losses to 33 lower in the afternoon.

Continued weakness in crude mineral oil is beginning to add pressure on the negative vegetable oils fundamentals. Usage for biodiesel / biofuel will be adversely affected. Concerns over the global economy, amid a five year low inflation rate in China and a decline in US producer prices, added to the negative sentiment. However, seasonal strength and lower production in the coming months may limit the downside.

Technical view - indicators are negative. Prices may move to 2050. Trend down ; RSI 45.0 ; 5-day MA intersected 20-day MA from above ; macd intersected trigger line from above ; stochastic oversold ; support 2100 / 2065 / 2000 ; resistance 2150 / 2223 / 2250 / 2300 / 2345.

Trading Tips for the Day - 16 October 2014

FKLI will likely open lower today, for the first trade, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

For FCPO, market eroded to a 3-week low yesterday following easier CBT soyoil and continued weakness in crude mineral oil. Technical selling as prices broke below 2137 added losses. Weaker ringgit, which lost about 0.3 pct vs USD today, helped to limit losses. The 1-15 October export numbers were as expected but deemed to be slightly negative. Prices were 5 to 25 lower in the morningand extended losses to 52 lower in the afternoon. Prompt October went off board without trading.

Supporting factors are lacking. Fundamental outlook is negative. The lower exports vs a month ago pointed to slower demand. Weakness in crude mineral oil raised concerns of smaller usage from the fuel sector. Adding weight is the current bumper US soyabean crop. However, the prospect of lower October production is supportive. Sentiment may also be boosted by historically high prices in January-March each year.

Technical view - prices broke below 2137 turning indicators negative. Prices may move to 2050. Trend down ; RSI 47.29 ; parabolic triggered a "sell" signal at 2143 ; 5-day MA intersected 20-day MA from above ; macd intersected trigger line from above ; stochastic oversold ; support 2100 / 2065 / 2000 ; resistance 2150 / 2223 / 2250 / 2300 / 2345.

Trading Tips for the Day - 15 October 2014

FKLI will likely open near yesterday's closing price.  For the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, last gasp covering closed market higher yesterday in an erratic session. Selling pressure had surfaced in the late afternoon following rumours of lower 1-15 October exports. Market was higher most of the session with support being encouraged by strong gains in CBT soyoil and higher China Dalian futures. Gains were however, capped by ideas of slow demand and weakness in crude mineral oil. Prices were 28 to 14 higher in the morning and eased to 2 lower in the afternoon.

The 1-15 October exports to be reported by the cargo surveyors tomorrow are expected to be lower against a month ago but with average export pace. Although full October exports are likely to be lower vs September, they may be balanced by the prospect of lower October production.

Meanwhile, reports of wet weather affecting current harvest of the US soyabean crop are supportive. Market needs some fresh news to move out of the current sideway range. Technical view - no change in the sideway trading range of 2220 - 2140.  Trend sideways ; RSI 52.63 ; parabolic SAR at 2143 ; support 2137 / 2100 / 2065 / 2000 ; resistance 2223 / 2250 / 2300 / 2345.

Trading Tips for the Day - 14 October 2014

FKLI will likely open lower, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Market closed at one week low today on late sell down. Selling followed quiet cash market which gave ideas of slow demand. Erosion in CBT soyoil, crude mineral oil and easier China Dalian futures also undermined sentiment. USDA supply - demand reports showed no surprises. Prices were 10 higher to 11 lower in the morning and eroded to 30 lower in the afternoon.

There are no changes in fundamentals. The lower 1-10 October exports and higher end
September stocks reported by MPOB will undermine support. Sentiment may also be undermined by the weakness in crude mineral oil, which can affect demand from the fuel sectors, and confirmation of bumper US soyabean crop by USDA. However, prospects of lower October production and historically strong first quarter prices may limit the downside.

Technical view - prices continue to trade within the 2220 - 2140 sideway range with slightly negative bias. Trend sideways ; RSI 51.62 ; parabolic SAR at 2141 ; support 2137 / 2100 / 2065 / 2000 ; resistance 2223 / 2250 / 2300 / 2345.

Trading Tips for the Day- 10 October 2014

FKLI  will likely open lower, for the first trade today, one can attempt ro Long 2-4 points below the opening price.  Try get 5 to 7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Trading Tips for the Day - 9 October 2014

FKLI will likely open higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Trading Tips for the Day - 8 October 2014

FKLI will likely open lower today after Dow Jones fell more than 200 points overnight.  For the first trade today, one can attempt to Long 2-4 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Market extended gains today following sharply higher CBT soyoil over the 3-day weekend. Gains were however, capped by weakness in crude mineral oil and the Reuters poll on September data which kept stocks about unchanged. Firmer cash market was also supportive. Prices were 35 to 22 higher in the morning and 28 to 7 higher in the afternoon.

There was some cautiousness as market look towards resumption of trading in China Dalian tomorrow after the one week holiday, export numbers by the cargo surveyors for 1-10 October, and the MPOB September data on 10 October. Reuters poll today was slightly negative as most expectations earlier are for some drop in stocks. In anycase, we think demand prospects will be the primary factor in the coming weeks.

Technical view - prices are sideways in a 2220 - 2140 range. Trend sideways ; RSI 56.83 ; parabolic SAR at 2220 ; support 2137 / 2100 / 2065 / 2000 ; resistance 2223 / 2250 / 2300 / 2345.

Trading Tips for the Day - 7 October 2014

FKLI will likely open higher today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5 to 7 points profit and out a stop 5 points away from the entry point.  Close your position by the end of the day.

Market closed higher on Friday after trading within the previous day's range. Buying was encouraged by steady CBT soyoil and some recovery in crude mineral oil. Short covering for the 3-day weekend and ideas that yesterday's drop was overdone added support. Gains were capped by a quiet cash market and ideas of slow demand. Prices were 5 to 23 higher in the morning and extended gains to 31 higher in the afternoon.

Fresh factors were lacking. Concerns over lower exports in October, record US soyabean crop currently being harvested, and weakness in crude mineral oil will undermine sentiment. Prospects of lower production in the coming months and ideas that prices are currently relatively low will encourage support on dips. Market will be guided by the 1-10 October exports and the MPOB September data in the coming week.

Technical view - prices turned sideways from big drop yesterday. Some indicators are negative and pull backs are sell opportunities. Trend sideways ; RSI 55.39 ; support 2137 / 2100 / 2065 / 2000 ; resistance 2223 / 2250 / 2300 / 2345.
 

Trading Tips for the Day - 3 October 2014

FKLI will likely open very near to yesterday's closing price.  For the first trade today, one can attempt to Long 1-3 points below the opening price, try get 5-7 points and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Market closed sharply lower today on strong selling in the afternoon. Selling was prompted by big drop in crude mineral oil, which lost more than USD2.00 in Asian trade. Stronger ringgit vs USD, gaining more than 0.6 pct, added weight. Technical selling as prices broke below the up trend channel magnified losses. Market was supported in the morning following strong gains in CBT soyoil. Prices were 16 higher to unchanged in the morning and eroded to 58 lower in the afternoon.

Weakness in crude mineral oil and stronger ringgit today added to concerns over slower demand in the coming months. Historically, market also trends slightly negative during the China National Day holiday week due to quiet conditions from the Chinese interest. Think export demand and production in October will be crucial to market direction and closely monitored. Current outlook is slightly negative.

Technical view - prices corrected further from the overbought stochastic. The break out of the up trend channel and below 2150 turned some indicators negative. Prices may erode to 2050.  Trend turning sideways ; RSI 52.30 ; parabolic triggered a "sell" signal at 2162 ; stochastic turned down from overbought ; support 2100 / 2065 / 2000 ; resistance 2223 / 2250 / 2300 / 2345.

Trading Tips for the Day - 2 October 2014

FKLI will likely open a little lower, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Market closed lower yesterday after an erratic trading session. Selling followed erosion in CBT soyoil and absence of fresh supporting factors. Technical correction from the overbought stochastic added weight. There was light support in the early afternoon, led by speculative buying, which did not follow through. Prices were 23 to 4 lower in the morning and 6 higher to 28 lower in choppy afternoon trading.

The slower export pace in the last 5 days of September probably dented bullish enthusiasm. There are concerns that October exports may be lower especially with the China market on a one week holiday. Sentiment was also affected by weakness in CBT soyoil / soyabean which discounted the low stocks and placed more emphasis on harvest pressure. Think October production will be closely watched after September production was reportedly lower.

Technical view - prices correcting from the overbought situation in the stochastic. Prices held within the up trend channel, keeping indicators positive. trend up ; RSI 60.62 ; parabolic SAR at 2162 ; stochastic overbought ; support 2150 / 2065 / 2000 ; resistance 2250 / 2300 / 2345.

Trading Tips for the Day - 1 October 2014

FKLI will likely open near yesterday's close, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

For FCPO, market rose in the last hour of trading to close higher yesterday. Buying was encouraged by rumours of high 1-30 September exports to be reported by the cargo surveyors tomorrow. Weaker ringgit, which lost about 0.6 pct vs USD, was also supportive. Market eased early following lower CBT soyoil and China Dalian futures. Trading volume was relatively low today. Prices were 17 to 1 lower in the morning and rose to 17 higher in the afternoon.

A confirmation of strong exports in September will keep market supported in the coming days. Together with lower September production, stocks will likely drop, contrary to earlier expectations.

There are also expectations for the Malaysian government to keep the zero cpo export duty through December which will also underpin sentiment. However, the bumper US soyabean crop and prospects of higher October production may cap gains. Meanwhile, opinions were mixed from the market analysts at the Globoil Conference in India over the weekend.

Technical view - prices are maintaining their upward momentum towards 2250. Indicators remain positive.  Trend up ; RSI 61.58 ; parabolic SAR at 2131 ; stochastic overbought ; support 2150 / 2065 / 2000 / 1950 ; resistance 2210 / 2250 / 2300 / 2345.

Trading Tips for the Day - 30 September 2014

FKLI will likely open almost at yesteday's closing price.  For the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close  your position by the end of the day.

Trading Tips for the Day - 29 September 2014

FKLI will likely open higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Weekend profit taking closed market lower today in choppy trading. However, benchmark price as sharply higher for the 4th consecutive week. Selling was also tied to protection against market outlook from the Globoil Conference in India this weekend. Slightly easier CBT soyoil and China Dalian futures also undermined sentiment. Prices were 21 lower to 6 higher in the morning and 4 higher to 21 lower in the afternoon.

The strong exports and lower September production vs August have changed market outlook. Any reduction in September end stocks will be supportive as production historically tapers from November. Full September exports will be closely followed in coming week. Meanwhile attention will also be drawn towards the Globoil Conference for some incentives.

Technical view - no change in positive indicators. Prices correcting from strong gains the last few days.  Trend up ; RSI 60.25 ; parabolic SAR at 2116 ; stochastic overbought ; support 2150 / 2065 / 2000 / 1950 ; resistance 2210 / 2250 / 2300 / 2345.

Trading Tips for the Day - 26 September 2014

FKLI will likely open lower, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market rose for the 3rd consecutive day, closing sharply higher. Buying followed strong exports for 1-25 Sep which was highest since Dec 2012 for the same period. Strong gains in CBT soyoil and China Dalian futures added support. Technical buying as prices broke above 2173 magnified gains. Weaker ringgit, which lost about 0.3 pct vs USD today, was also positive. Prices rose 10 to 24 higher in the morning and extended gains to 53 higher in the afternoon.

Demand factors have dominated sentiment this week. Together with reports of lower Sep production vs Aug, palm oil fundamentals are tilting towards positiveness. Prospect of tapering production in coming months and continuation of strong demand will be supportive. However, it is difficult to get away from the bumper US soybean crop and big global oilseed supplies. The GLOBOIL Conference in India this weekend, starting tomorrow should be interesting.

Technical view - prices are continuing their climb to 2250.  Trend up ; RSI 64.0 ; parabolic SAR at 2099 ; support 2150 / 2065 / 2000 / 1950 ; resistance 2250 / 2300 / 2345.

Trading Tips for the Day - 25 September 2014

FKLI will likely open higher today after Dow Jones snapped a 2 day triple digit loss.  For the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day. 

As for FCPO,  market extended gains yesterday with good support in the afternoon. Buying was encouraged by MPOA report of more than 12 pct drop in 1-20 September production vs a month ago. Higher CBT soyoil and China Dalian futures added support. Fresh sellers were lacking. Prices were 3 lower to 15 higher in the morning and rose gradually to 31 higher in the afternoon.

There are no new factors. A lower September production vs August, last seen in 2010, will raise the prospect of production tapering off in the coming months. This may see stocks depleting if exports maintain the current good pace. Increased use for fuel and biodiesel, including the higher biodiesel mandates in Brazil and Argentina using soyoil as feedstock, is also positive. However, bigger global vegetable oils supplies, in light of record US soyabean crop, may cap the upside.

Technical view - the strong close kept indicators positive. Prices continued to rise within the up trend channel towards 2250.  Trend sideways ; RSI 58.89 ; parabolic SAR at 2079 ; support 2065 / 2000 / 1950 ; resistance 2173 / 2200 / 2250.

Trading Tips for the Day - 24 September 2014

FKLI will likely open lower, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, arket rebounded yesterday on improved sentiment. Buying was encouraged by firmer cash market and expectations of strong demand. Ideas that market has bottomed also encouraged support. Short covering and technical considerations added gains. Lower CBT soyoil and easier China Dalian futures did not have much effect. Prices were 7 to 34 higher in the morning and were 6 to 41 higher in the afternoon.

Sentiment looks more positive at present after the relatively high September exports todate. Reports of bearish fundamentals, ie. higher stocks, bumper US soyabean and global oilseeds production, etc. are getting stale. Prospects of continuing strong demand is getting more weightage. Fresh news seem to be more supportive, eg. lower September production which may point to declining production in the coming months.

Technical view - prices resuming the up trend towards 2250 after correction.  Trend sideways ; RSI 55.03 ; parabolic SAR at 2064 ; support 2065 / 2000 / 1950 ; resistance 2173 / 2200 / 2250.

Trading Tips for the Day - 22 September 2014

FKLI will likely open higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, Weekend profit taking closed market lower today although prices were higher for the third consecutive week. Selling was prompted by sharply lower CBT soyoil and erosion in China Dalian futures.
Technically, the overbought situation added pressure. Losses were held by rumours of good exports for 1-20 September to be reported by the cargo surveyors. Prices were 32 to 10 lower in the morning and eased slightly further in the afternoon.

Market will be looking towards the export numbers for incentives in the coming week. A continuation of
strong exports are needed to maintain the positive trend. However, the fundamental outlook remains bearish. Stocks will likely increase through October although big jumps, like in August, are not expected. USA may see some harvest pressure from a bumper soyabean crop. Indian weather also gives better crop prospects.

Technical view - prices correcting from the overbought situation indicated in the stochastic. Ability of prices to hold above 2100 may carry prices to 2250. Good support seen at 2050.  Trend up ; RSI 52.97 ; stochastic turned down from overbought ; support 2090 / 2050 / 2000 / 1950 ; resistance 2173 / 2200 / 2250 / 2300 ; open interest decreasing.

ITS reports that Malaysia palm oil export for 1 - 20 September is up 21.2%.

Trading Tips for the Day - 19 September 2014

FKLI will likely open higher today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5 - 7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

BREAKING NEWS!! 18 September 2014

Malaysia's Central Bank keeps overnight policy rate unchanged at 3.25%

Trading Tips for the Day - 18 September 2014

FKLI will likely open a little higher today, for the first trade, one can attempt to Long 1-3 point below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market closed higher for the 4th consecutive day with better gains in the nearbys. Buying was tied to improved sentiment on ideas of strong demand following the high 1-15 Sep exports. Firmer CBT soyoil and steady China Dalian futures were also supportive. Fresh sellers were lacking. Short covering, especially in nearby positions added gains. Prices were erratic in the morning, trading 14 lower to 11 higher and rose to 32 higher in the afternoon.

Prospect of strong demand and ideas that market had bottomed are boosting sentiment. Technical considerations were also supportive. The firmer ringgit, which gained about 0.3 pct vs USD today, had no effect. Traders were probably giving better weightage to Southern POMA report of lower 1-15 Sep production and current record low US soyoil stocks. Meanwhile media reports of China Central Bank injecting 500 billion yuan into China's top five banks to stimulate the economy may have some positive effect.

Technical view - there was some initial correction from the overbought situation in the stochastic which found good support and maintained the strong up trend. Prices may rise to 2250. Trend up ; RSI 59.35 ; stochastic overbought ; support 2090 / 2050 / 2000 / 1950 ; resistance 2163 / 2200 / 2250.

Trading Tips for the Day - 17 September 2014

FKLI will likely open a few points higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day. 

As for FCPO, market rose to close higher for the 3rd consecutive day. Support followed sharply higher CBT soyoil and strong gains in China Dalian futures. Big increase in 1-15 September exports and a weaker ringgit, which lost about 1 pct vs USD, were also supportive. Gains were, however, capped by the technically overbought situation indicated in the stochastic and negative projections from Mr Dorab Mistry. Prices were 7 to 37 higher in the morning and 40 to 7 higher in the afternoon.

The 1-15 September exports were the highest for the first fifteen days since October 2013. This is positive and gave ideas that current prices are competitive to attract strong demand. Even the CBT soyoil showed sensitivity towards any positive news with strong gains last Friday. However, concerns over higher production and stocks through October as well as bumper US soyabean crop may keep support cautious.

Technical view - prices continued their up trend. An effective break above 2100 may carry prices to 2250. The overbought indication in the stochastic may see some downward correction.  Trend up ; RSI 53.03 ; stochastic overbought ; support 2050 / 2000 / 1950 ; resistance 2163 / 2200 / 2250.

Trading Tips for the Day - 15 September 2014

FKLI will likely open lower, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the trading day.

As for FCPO, market extended gains to close at its highest level in nearly 4 weeks Friday. Trading was rather choppy throughout as prices fluctuated on either sides of the previous day's close. Buying was encouraged by firmer cash market and ideas of good demand. Higher China Dalian futures and e-CBT soyoil were also supportive. Expectations of high production and stocks through October prompted selling which resulted in choppy trading. Prices were 20 higher to 17 lower in the morning before closing 8 higher.  Choppy session continued in the afternoon with prices 6 lower to 19 higher.

Strong gains the last 2 days inspite of sharply higher August production and stocks reported by MPOB pointed to a positive change in sentiment. The record US soyabean crop was also discounted as already factored in. Prospect of increased demand by the fuel sector, consumers replenishing low stocks, and higher exports on zero cpo export duty are encouraging support.

Technical view - prices continued the short term up trend towards 2100.  Trend up ; RSI 50.18 ; stochastic overbought ; support 2050 / 2000 / 1950 / 1914 ; resistance 2100 / 2163 / 2200.

Trading Tips for the Day - 12 September 2014

FKLI will likely open almost unchanged, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from the opening price.  Close your position by the end of the day.

For FCPO market recovered from early erosion to close sharply higher yesterday. Buying was encouraged by firmer cash market with reports of good buying interest. Higher close in China Dalian futures also underpinned sentiment. Technical support as prices rose above 2050 added gains. There was some early selling pressure tied to concerns over increasing supplies in the coming months. Prices were 26 lower to 16 higher in the morning and rose to 40 higher in the afternoon with strong support towards close.

There was more focus on demand today. The good 1-10 September exports were encouraging and will likely continue with the zero export duty. Sentiment may also be boosted by the lower Southern POMA production report for 1-10 September. However, supplies are increasing with higher stocks expected in September - October. The record US soyabean crop is also negative.  Short term trend up ; RSI 47.40 ; 5-day MA intersected 20-day MA from below ; support 2000 / 1950 / 1914 ; resistance 2100 / 2163 / 2200.

Trading Tips for the Day - 11 September 2014

FKLI will likely open a little higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day. 

As for FCPO, late buying closed market mixed after early erosion found good support. Weakness in CBT soyoil and China Dalian futures prompted selling early with losses being held by the very good 1-10 September exports. Bearish MPOB data again resulted in selling pressure in the early afternoon before recovering towards close. Prices did a full circle, eroding 7 to 37 lower in the morning and trading at 29 lower to 1 higher in the afternoon.

Market seemed to be discounting the bearish MPOB August data as already expected. However, the big increase in stocks is of concern as production is expected to remain high in September - October. Weakness in CBT soyoil, due to expectations of record soyabean production with current good weather, also weighed on sentiment. However, there are feelings that market has accounted for these bearish factors already and may have bottomed. Demand looks good (the 1-10 September exports were highest for the first ten days since October 2013) and there are expectations of increased use for fuel and biodiesel.

Technical view - prices correcting from the overbought situation in the stochastic. No change in the short term positive trend.  Trend sideways ; RSI 40.66 ; stochastic turned down from overbought ; support 2000 / 1950 / 1914 ; resistance 2068 / 2100 / 2163 / 2200.

Trading Tips for the Day - 10 September 2014

FKLI will likely open slightly lower, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market closed lower yesterday as sellers took protection against the likelihood of a bearish MPOB August data tomorrow. Losses were held by rumours of higher 1-10 September exports to be reported by the cargo surveyors today. Lower CBT soyoil and China Dalian futures undermined market early. But the weaker ringgit, which lost about 0.5 pct vs USD, helped to limit losses. Prices were 1 higher to 18 lower in the morning and eroded to 39 lower in the afternoon before recovering slightly towards close.

Exports for 1-10 September and the MPOB data tomorrow will be followed. The MPOA August production estimate was rather high but may already be discounted with the sharp drop in prices during August. Exports may be of greater interest. This will indicate if prices are low enough to induce better demand. Meanwhile, the USDA soyabean crop ratings pointed to bumper production under near ideal weather, which is negative.

Technical view - prices correcting from the overbought situation indicated in the stochastic. The short term trend remains positive. Trend up ; RSI 40.80 ; stochastic overbought ; support 2000 / 1950 / 1914 ; resistance 2068 / 2100 / 2163 / 2200.

Trading Tips for the Day - 9 September 2014

FKLI will likely open a little lower, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, good support continued yesterday. Market closed higher after choppy trading in the afternoon. There was good support in the morning following higher CBT soyoil. Ideas that market may have seen the lows encouraged buying, led by short covering. However, weak fundamentals provided resistance and checked gains. Prices rose 16 to 43 higher in the morning and were 32 to 2 higher in the afternoon.

There was no new factor. The zero export duty for September and October gave good reason for support after very sharp drop since July. This raised expectations for increased exports and for use in the fuel sectors. However, most fundamentals remain negative with higher production through October, record high US soyabean crop under excellent weather, bigger global oilseeds supplies, and better Indian monsoon.

Technical view - short term trend is positive. The overbought situation indicated in the stochastic may see some downward correction which should be a buy opportunity.  Trend up ; RSI 42.27 ; stochastic overbought ; support 2000 / 1950 / 1914 ; resistance 2100 / 2163 / 2200.

Trading Tips for the Day - 8 September 2014

FKLI will likely open a few points higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

For FCPO, market closed mixed with nearbys higher but forwards lower. News of zero CPO export duty for September and October encouraged buying especially in the September and October positions. Higher CBT soyoil and China Dalian futures were also supportive. Concerns over higher production and increasing stocks in the coming months capped gains while prompting selling on rallies. Weekend profit taking added pressure. Prices were 11 higher to 23 lower in the morning and 7 higher to 35 lower in the afternoon.

Sentiment was lifted by the prospect of better export demand with announcement of zero export duty, which may extend to December. Together with the current relatively low price, some rebound from the sharp drop the past one month will not be surprising. However, the market is entering the high production months in August - October, and together with expectations of record high US soyabean crop, fundamentals are negative. MPOB data for August and the export numbers will be followed next week.

Technical view - prices moved into consolidation within a 2050 - 1915 range. Trend down ; RSI 38.53 ; parabolic triggered a "buy" signal at 2034 ; support 1950 / 1914 / 1850 ; resistance 2050 / 2100 / 2163 ; open interest increasing.

Trading Tips for the Day - 5 September 2014

FKLI will likely open very near to yesterday's closing price, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

For FCPO, market rose for the third consecutive day to close sharply higher yesterday. Strong buying came in the afternoon following rumours that Malaysia will be abolishing the export duty on crude palm oil. Firmer cash CPO market lent credit to the rumours. Short covering and technical considerations as prices broke above 2000 added support. Similar to the last 2 days, market eased early in tandem with CBT soyoil and China Dalian futures. Prices were 13 lower to 18 higher in the morning and rose up to 55 higher in the afternoon.

Market acted on its own today and showed its sensitivity to positive news. Any abolishment of the export duty is positive and will help in increasing exports. Market was also supported by ideas that current bearish factors were already factored in after big drop the past month. However, fundamentals remain negative with big increase in production and stocks in August. Demand will be closely followed in the coming months.

Technical view - the break above 2000 is slightly positive and may carry prices to 2100. Trend down ; RSI 39.12 ; parabolic SAR at 2034 ; macd intersects trigger line from below ; support 1950 / 1915 / 1850 ; resistance 2050 / 2100 / 2163 ; open interest increasing.

Trading Tips for the Day - 4 September 2014

FKLI will likely open at near yesterday's closing price.  For the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market extended gains yesterday as lower opening found good support. Buying followed steadiness in China Dalian olein futures and ideas that the downside may be limited. Continued technical correction from the oversold situation added support. Sentiment was also underpinned by the improved export pace the last few days of August and prospects of increased use for biodiesel. Market was lower early following easier CBT soyoil. Prices were 12 lower to 33 higher in the morning and held steady in the afternoon.

There seemed to be ideas that market is now at the lows, and that all bearish factors have already been factored into the market. There is no dispute that production will be higher in the coming months and the US will have record high soyabean production under the current excellent weather. However, there are signs of improving demand, including from the fuel sector. The reports of increased biodiesel mandate in Brazil is positive.
Technical view - prices continued to correct from the oversold situation. The positive divergence between price and RSI / stochastic points to further upside.  Trend down ; RSI 28.58 ( oversold ) ; parabolic SAR at 2039 ; support 1915 / 1850 / 1800 ; resistance 2000 / 2050 / 2100 / 2163 ; positive divergence between price and RSI ; positive divergence between price and stochastic.

Trading Tips for the Day - 3 September 2014

FKLI will likely open a few points lower, for the first trade today one can attempt to Short at 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market closed higher yesterday after eroding to fresh new low early. Buying was encouraged by better export pace the last few days and higher China Dalian olein and soyoil futures. Weaker ringgit, which lost about 0.5 pct vs USD, added support. Technical correction from the oversold situation and positive divergence between price and RSI / stochastic were also supportive. Market eroded early following sharply lower CBT soyoil. Prices were 15 lower to 23 higher in the morning and extended gains to 34 higher in the afternoon.

There was some support from bottom pickers on ideas that the downside may be limited from current levels. China Dalian futures were also relatively steady the past few days. The improved export pace also raised the prospect that demand will be better in the coming months especially with reports of low consumers stock. However, fundamentals remain negative with higher production through October and bumper US soyabean crop.

Technical view - prices correcting from the oversold situation. The positive divergence between price and RSI / stochastic may see further gains in the coming days.  Trend down ; RSI 22.59 ( oversold ) ; support 1900 / 1850 / 1800 ; resistance 2000 / 2050 / 2100 / 2163 ; positive divergence between price and RSI ; positive divergence between price and stochastic.

Trading Tips for the Day - 2 September 2014

FKLI will likely open a little lower, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

For FCPO, market came under another sell down on Friday to close sharply lower for the fourth consecutive week. Selling was prompted by continuing bearish sentiment in the absence of supporting factors. Quiet cash market and ideas of slow demand undermined support. Technical selling as prices broke below 1950 magnified losses. Steady China Dalian futures and CBT soyoil encouraged light support at the opening which found stiff resistance. Prices were 5 higher to 11 lower in the morning and extended losses to 53 lower in the afternoon.

Heavy selling inspite of a 3-day weekend pointed to strong bearish sentiment. There seemed to be selling ahead of the expected poor 1-31 August exports to be reported by the cargo surveyors on 2 September. Lack of supporting factors also kept bears comfortable. Unless demand picks up soon, market may remain under pressure in the coming weeks.

Technical view - prices broke below 1950, continuing the negative trend. Good support seen at 1900. No change in negative indicators.  Trend down ; RSI 16.34 ( oversold ) ; parabolic retriggered a "sell" signal at 1957 ; stochastic oversold ; support 1900 / 1850 / 1800 ; resistance 2000 / 2050 / 2100 / 2163.

Trading Tips for the Day - 29 August 2014

FKLI will likely open a little lower, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

For FCPO, market closed slightly higher yesterday in an erratic and choppy session. September was, however, lower on long liquidation. Buying was encouraged by steadiness in China Dalian futures and e-CBT soyoil. Prospect of increased imports by China after reports that banks have resumed credit facilities was also supportive. However, negative fundamentals continued to prompt intermittent selling throughout the session. Prices were 11 lower to 12 higher in the morning and 25 higher to 11 lower in the afternoon.

Tussle between weak fundamentals and low prices is continuing. It may be difficult for the market to rise in view of the coming high production months through October and good weather for the US soyabean crop. However, the sharp fall from May could have accounted for these negative factors with the current low prices. Meanwhile, the report on China's Shangdong Changhua's resumption of palm oil imports is positive.

Technical view - prices moved into the 2050 - 1950 trading range. Indicators remain negative.  Trend down ; RSI 19.37 ( oversold ) ; parabolic SAR at 1957 ; support 1955 / 1900 / 1850 ; resistance 2050 / 2100 / 2163.

Trading Tips for the Day - 28 August 2014

FKLI will likely open very near yesterday's close, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit, put a stop 5 points away from your entry point.  Close your position by the end of the day.

For FCPO, market failed to hold strong early gains and eroded to close sharply lower yesterday. Better sellers came in the afternoon, as bearish sentiment dominated again. Selling followed ideas that bearish vegetable oils fundamentals are not yet fully factored in the market. Stronger ringgit which gained more than 0.4 pct vs USD added weight. Market rose early following higher CBT soyoil and China Dalian futures. Prices were 40 to 8 higher in the morning and eroded to 39 lower in the afternoon.

Market remained under bearish pressure with no change in the weak fundamentals. Coming high production months are of concern. Comments by market analyst Mr Dorab Mistry, who reportedly said that prices tend to gravitate towards cost of production during bear markets, probably added some selling pressure today. However, prices are relatively low at present and big sideway trading range the past few days is indicative of some cautiousness.

Technical view - the weak close kept indicators negative. However, prices have moved into a 2050 -1950 trading range.  Trend down ; RSI 18.53 ( oversold ) ; parabolic triggered a "buy" signal at 2045 ; support 1955 / 1900 / 1850 ; resistance 2050 / 2100 / 2163.

Trading Tips for the Day - 27 August 2014

FKLI will open a little higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

For FCPO, market closed lower yesterday after an erratic and choppy session. Prices traded in wide range within Monday's levels. Selling was prompted by lack of supporting factors with only small gains in China Dalian futures and CBT soyoil overnight. Concerns over slow exports and prospects of increasing production and stocks continued to undermine sentiment. Prices were 2 to 25 lower in the morning and 56 to 14 lower in the afternoon.

Big swings these last 2 days pointed to some cautiousness at current price levels. There are no changes to the bearish fundamentals with higher production expected through October while exports are not seen to be picking up yet. The prospect of a bumper US soyabean crop also added pressure. However, current prices are deemed to be relatively low, which may result in consumers looking towards stock replenishing. Increased use for fuel, with higher biodiesel production in Argentina and Brazil using soyoil, will also lend support.

Technical view - prices turned sideways, holding within the previous day's range. Indicators remain negative. The oversold situation in the RSI may keep prices sideways in the coming days. Trend down ; RSI 20.96 ( oversold ) ; parabolic SAR at 2045 ; support 1955 / 1900 / 1850 ; resistance 2050 / 2100 / 2163.

Trading Tips for the Day - 26 August 2014

FKLI will likely open a little higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the trading day.

For FCPO, market rebounded after eroding to new low since March 2009 to close sharply higher yesterday. Buying was led by short covering on ideas that market is due for correction from oversold situation. Expectation of improving demand in coming months added support. Market eroded in the morning following poor 1-25 August exports and weakness in CBT soyoil and China Dalian futures. Prices were 3 higher to 45 lower in the morning and rose from 19 lower to 46 higher in the afternoon.

Looks more like technical play today. Fundamentals are unchanged and remain negative. The low August exports will point to sharp increase in stocks as production is expected to rise about 15 pct. Bumper US soybean crop and better global oilseeds supply also weigh on sentiment. There is also concern about China's imports in view of financing difficulties. However, prices are relatively low and will attract better demand and bottom picking.

Technical view - it was an outside day today which may see further rebound due to grossly oversold situation. However, indicators remain negative.  Trend down ; RSI 22.32 ( oversold ) ; parabolic SAR at 2057 ; stochastic turned up from oversold ; support 1990 / 1955 / 1900 ; resistance 2050 / 2100 / 2163.

Trading Tips for the Day - 25 August 2014

FKLI will likely open a little higher, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the trading day. 

For FCPO, market broke 2000 on Friday, closing at its lowest level since July 2009. Selling was tied to continuing bearish sentiment and absence of supporting factors. Talks of defaults as the market fell sharply since July added pressure. Long liquidation magnified losses. Steady China Dalian olein and soyoil futures had little effect except providing a better opening. Prices were 5 higher to 10 lower in the morning and eroded to 50 lower in the afternoon.

Lack of weekend short covering inspite of big drop this week points to bears dominating. Fundamental outlook remains negative with possibility of default adding to demand concerns. Exports for 1-25 August and full month August are likely to be below July levels. However, current prices should be attractive to induce better demand especially from India which is facing a weak monsoon. Technical view - indicators continue negative. The very sharp drop this last 2 weeks keep market grossly oversold and some upward correction is overdue. Trend down ; RSI 13.32 ( oversold ) ; parabolic SAR at 2083 ; stochastic oversold ; support 1990 / 1950 / 1900 ; resistance 2050 / 2100 / 2163.

Trading Tips for the Day - 22 August 2014

FKLI will likely open a little higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

For FCPO, similar pattern of the past few days continued yesterday. There was early support following higher CBT soyoil, China Dalian futures, and ideas that a rebound was overdue. Better sellers surfaced in the afternoon, pressuring market to new lows since 8 October 2009. Quiet cash market and ideas of increasing supplies in the coming months continued to undermine sentiment. Prices were 20 higher to 3 lower in the morning and eroded to 16 lower in the afternoon.

It is difficult to find factors for support at the moment. Fundamentals are weak with high production months in August - October and continuing forecast for bumper US soyabean crop amid very good weather. Even crude mineral oil prices eroded in recent days on better supplies. However, current prices are relatively low and the market will be sensitive to any positive development.

Technical view - prices continuing the down trend towards 2000. Both RSI and stochastic remain grossly oversold and some upward correction is due.  Trend down ; RSI 15.47 ( oversold ) ; parabolic SAR at 2106 ; stochastic oversold ; support 2033 / 2000 / 1950 ; resistance 2100 / 2163 / 2200 / 2250.

Trading Tips for the Day - 21 August 2014

FKLI will likely open a little higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the trading day.

For FCPO, weakness continued with better sellers again in yesterday's afternoon, closing market at new lows. Selling followed continuing erosion in CBT soyoil ( with e-CBT trading lower ) and easier China Dalian futures. Quiet cash market also undermined support. Cargo surveyors' export numbers for 1-20 August were on the low sides of guesstimates and added pressure. Weaker ringgit which lost about 0.3 pct vs USD had no effect. Prices were 7 higher to 15 lower in the morning and eroded to 23 lower in the afternoon.

There was little incentive for buying in spite of the relatively low current price. Fundamentals remain bearish with higher seasonal production in Aug - Oct but no sign of strong pick-up in demand. Absence of weather concern in the US soybean crop is also negative. Market may have to look towards increase demand for fuel for any silver lining.

Technical view - market is grossly oversold but indicators remain negative. Shorts may hold positions. Trend down ; RSI 16.07 ( oversold ) ; parabolic SAR at 2124 ; stochastic oversold ; support 2045 / 2000 / 1950 ; resistance 2100 / 2163 / 2200 / 2250.

Trading Tips for the Day - 20 August 2014

FKLI will likely open higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, strong selling in the afternoon yesterday closed market at fresh new low since 9 October 2009. Selling was prompted by lack of supporting factors and concerns over increasing production and stocks in the coming months. Prospect of very good weather in the US continuing for the current soyabean crop also undermined sentiment. Late rumours of better pick up in exports the last 5 days had little effect. Prices were 10 higher to 4 lower in the morning and eroded to 22 lower in the afternoon.

Absence of positive development continued to keep bears comfortable and in control. Nearby factors point to weak trend continuing. Production and stocks will likely increase in the coming months. Bumper US soyabean crop seems assured with good weather and improved crop ratings by USDA in its weekly crop progress report. However, current prices are attractive to induce greater demand, including for fuel and biodiesel.

Technical view - weak trend continued. The increasing open positions pointed to the shorts maintaining. Prices may drop to 2000. The RSI and stochastic remain oversold and some upward correction is due. Trend down ; RSI 17.25 ( oversold ) ; parabolic SAR at 2144 ; stochastic oversold ; support 2050 / 2000 / 1950 ; resistance 2100 / 2163 / 2200 / 2250 ; open interest increasing.

Trading Tips for the Day - 19 August 2014

FKLI will likely open higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the trading day.

For FCPO, market closed slightly lower yesterday after trading on either sides of the previous day's close. There was light support early following the technically oversold situation and ideas that prices were relatively low. Weakness in CBT soyoil and China Dalian futures capped gains while encouraging selling on rallies. Prices were 7 higher to 8 lower in the morning and traded mostly around 5 lower in the afternoon.

There are no changes in the bearish fundamentals. Palm oil production will be higher in the coming months through October and the stocks will increase. Prospect of El Nino weather has diminished. US soyabean crop will be a record high with current very good weather. Generally, global oilseeds supplies are exceeding demand. However, prices are now relatively low and attractive for increasing use in fuels and biodiesel, which may limit the downside.

Technical view - indicators continue negative. Prices may erode to 2000. There may be some upward correction from the oversold situation in both RSI and stochastic. Trend down ; RSI 18.59 ( oversold ) ; parabolic SAR at 2163 ; stochastic oversold ; support 2085 / 2050 / 2000 ; resistance 2163 / 2200 / 2250 ; open interest increasing.

Trading Tips for the Day - 18 August 2014

FKLI will likely a little down, for the first trade today, one csn attempt ro short 1-3 points above the opening price. Try get 5-7 points profit and put a stop 5 points away from your entry point. Close your position by the end of the day.

Trading Tips for the Day - 15 August 2014

FKLI will likely open a few points higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, harply lower CBT soyoil pressured the market to its lowest level since 15 October 2009. China Dalian also reacted in tandem, with RBD olein futures losing more than 2 pct. Adding weight was a stronger ringgit which rose more than 0.4 pct vs USD yesterday. Technical selling and long liquidation magnified losses. Prices gapped 26 to 43 lower in the morning and extended losses to 61 lower before closing off the lows.

Bears continued to flex their muscles following weakness in related outside factors. The very good weather is pressuring CBT soyoil, with bumper soyabean crop expected and China Dalian futures following. Weak crude mineral oil price, firmer ringgit and better global oilseeds supplies added to the negative outlook. Unless export demand picks up soon, weak trend may continue with high production months in August - October.

Technical view - bearish trend continues. Indicators remain negative. Market is oversold. Upward correction is a sell opportunity. An effective break below 2100 will carry prices to 2000.  Trend down ; RSI 21.92 ( oversold ) ; parabolic SAR at 2207 ; stochastic oversold ; support 2115 / 2100 / 2050 ; resistance 2163 / 2200 / 2250 / 2300 ; open interest increasing.