Tuesday, August 28, 2012

Market Overview 30th Aug 2012

Wednesday, 29th Aug 2012. Malaysia commodities futures went down for correction after surging for few session followed by other vegetable oil price cool down as well. Other news to follow.

"-  U.S. stocks on Wednesday ended with mild gains that started just before the release of the Federal Reserve’s Beige Book, which found gradual economic expansion across the Fed’s 12 districts.  After falling 22 points and rising 42, the Dow Jones Industrial Average DJIA +0.03%  ended 4.49 points higher, or less than 0.1%, at 13,107.48. That was the blue-chip index’s first gain in three days. In position for a third monthly gain, the S&P 500 IndexSPX +0.08%   rose 1.19 point, or 0.1%, to 1,410.49, with telecommunications the best performing and energy the greatest laggard of its 10 sectors. It was also the first gain in three days for the S&P 500. The Nasdaq Composite COMP +0.13%  advanced 4.05 points, or 0.1%, to 3,081.19. The index was up for four consecutive days, its longest winning streak since early July."

" Asian shares ended modestly lower on Wednesday, with weaker steel makers a drag on Shanghai, while Japanese stocks were supported by deal speculation. 
Japan’s Nikkei Stock Average JP:100000018 -0.85%  rose 0.2%, while South Korea’s KospiKR:SEU -1.38%  edged up 0.6%, and Hong Kong’s Hang Seng Index HK:HSI -0.12%  fell 0.1%. Also weaker, the Shanghai Composite Index CN:000001 -0.96%  declined 1% to close at a three-and-a-half-year low, while the Shenzhen Composite was off 0.6%. Australia’s S&P/ASX 200 index AU:XJO -0.93%  ended slightly down for the day, off 0.1%. The Asia Dow was down 0.04%."
"-  Crude-oil futures ended lower on Wednesday as concerns about the impact of Hurricane Isaac on energy production in the Gulf faded and a weekly government report showed a surprise increase in inventories. Crude for October delivery CLV2 -0.47% declined 84 cents, or 0.9%, to $95.49 a barrel on the New York Mercantile Exchange. Gasoline and heating oil also ended lower, with natural gas bucking the trend to end higher ahead of its own inventories report due Thursday "

"-November Soybeans finished up 30 3/4 at 1753, 1 off the high and 36 1/2 up from the low. January Soybeans closed up 28 at 1742 1/2. This was 32 1/2 up from the low and 3/4 off the high. 
December Soymeal closed up 8.2 at 530.0. This was 10.1 up from the low and 0.6 off the high. December Soybean Oil finished up 0.91 at 57.3, 0.3 off the high and 1.18 up from the low. November soybeans exploded higher and closed near the highs of the day. Spillover support was seen from a wave of new buying in corn and wheat futures as well. Continued buying interest by China and questionable new crop yields has been supportive to price action. Hurricane Isaac slammed into the New Orleans, LA coast with winds near 80-100 miles per hour. Heavy rains and wind are expected to affect Arkansas, Mississippi, Alabama, Tennessee, Missouri, Illinois, and Indiana. Harvest delays will be seen in the southern and eastern Midwest. Heavy rainfall from Hurricane Isaac and blistering temperatures in the western Corn Belt were also seen as supporting factors in today's trade. Temperatures are forecasted to reach highs over 95 degrees in areas of Kansas, Nebraska, Iowa, and Illinois today. Spot soybean basis at two Indiana soybean processors jumped 10-15 cents a bushels on fears that the torrential rainfall forecasted for later this week could delay the arrival of new crop soybeans and damage quality."


FCPO- First Bears Counter Action/ Correction


Palm oil futures ended substantially lower yesterday amid recent correction occur on Soy oil. The market has to cool down a bit after the price surge more than 5% last week. Closing lower for the second time, the benchmark Nov started the opening bell by gap down and continue to record weakness throughout the remaining session. As a result, the benchmark Nov slide about RM29 lower to 3,000 level, ended 22 points above the low of the day. Meanwhile for Soy oil, Dec contract went up about 0.91 cents to 57.3 cents per pound on 29th Aug closing bell. Even though it was about 2% decent for the benchmark Nov, looking at medium term perspective, the positive momentum for this market still intact. The medium term Bullish outlook has some how jeopardize as the Bears manage to push the price down below the weekly support level around 3,010 level. Things would be entirely different for shorter time frame. There was sufficient indication for further market weakness as there was at least two lower lows and lower highs formation on the 15 minutes chart. Market is poised to weaken further judging on yesterday closing price which also create a new lower low. For intraday trader, daily pivot point support and resistance level will be located around 2,972 and 3,066 respectively.

Daily Pivot Point
R2=3066
R1=3033
S1= 2972
S2= 2944
 Disclaimer: Information and opinions contained in this report are for educational purposes only. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness.

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