Friday, 28th Dec 2012. Palm oil futures recovered to monthly high yesterday after it showed Bullish candle formation on previous week. Other news to follow.
"- U.S. stocks ended lower for a fourth session Thursday as Wall Street expressed its distress over the still-unresolved fiscal cliff. However, the benchmark indexes erased the bulk of what had been steep losses after word the U.S. House would convene Sunday night as lawmakers try to reach a deal to break the budget impasse before the end of the year. After a 150-point fall, the Dow Jones Industrial Average closed at 13,096.31, down 18.28 points, or 0.1%. The S&P 500 index lost 1.73 points, or 0.1%, to 1,418.10. The Nasdaq Composite retreated 4.25 points, or 0.1%, to 2,985.90. "
"- Japanese stocks on Thursday rallied to their highest level since the March 2011 earthquake as hopes for a policy stimulus and a weakened yen spurred buyers, while gains in other regional markets were capped amid worries related to the U.S. fiscal cliff. The Nikkei Stock Average climbed 0.9% to 10,322.98, a closing level it hasn’t seen since March 10, 2011, one day before a massive earthquake and tsunami devastated the country. Elsewhere in the region, Hong Kong’s Hang Seng Index rose 0.4% and Australia’s S&P/ASX 200 added 0.3% as the markets reopened for the first time since Monday. Taiwan’s Taiex inched up 0.2% and South Korea’s Kospi gained 0.3%, while China’s Shanghai Composite fell 0.6%."
"- Crude-oil futures slipped Thursday, with prospects becoming dimmer that U.S. lawmakers will find a way to reach a budget agreement before the end of the year. Crude for February delivery shed 11 cents to settle at $90.87 a barrel. "
"-January Soybeans finished down 5 1/2 at 1419, 18 off the high and 3 1/4 up from the low. March Soybeans closed down 4 at 1414 1/2. This was 3 1/4 up from the low and 15 off the high.
FCPO- Hitting Monthly High.
Market is heading higher than expected yesterday due to positive sentiment over the upcoming palm oil tax scheme that will implement early Jan next year. Malaysia palm oil board has agreed to lower the palm oil export tax rate so that it provide better edge to the local producer to compete with cheaper palm oil price in Indonesia. Market participants are expecting shipments figure to improve after the new export tax scheme implement, which might be just weeks away. At close, the benchmark March ended RM49 higher to 2,479, closing just 5 points below the day high. Volume was recorded higher to 16,605 lots, slightly lower than the average 18,000 lots per session as most of the institutional designated traders are out for year end holiday. Technically, the benchmark Mar is continuing the journey from previous week Bullish candle formation. There was series of higher lows and higher highs candle formations reoccurring within the hourly chart plus at least one series of higher low and higher high formation formed on daily chart as well. If there there was a Bullish candle formation occur on daily chart, chances for the market to continue recover is quite high. To recap, what was thought a fail rallies when the market recovered from previous major support and then retrace soon after that was quickly rectified on previous Friday when the benchmark Mar manage to surge (Bullish Engulfing candle) pass above last week losses. For today, pivot support for the benchmark Mar is located around 2,440 while resistance is pegged at 2,522.
Daily Pivot Point
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.