Wednesday, March 6, 2013

Palm Oil Price Finding Support 6th March 2013

Wednesday 6th March 2013. Palm oil futures is looking for support after it attempt to recover from previous low around 2,367. Other news to follow.

"-The Dow Jones Industrial Average leapt to a new high on Tuesday, surpassing levels reached more than five years ago, on indications of an improving U.S. economy. The Dow industrials DJIA +0.89%   gained 125.95 points, or 0.9%, to end at 14,253.77, after rising to 14,286.37, easily topping its all-time intraday high of 14,198.10, set on October 11, 2007. The S&P 500 index SPX +0.96%   rose 14.59 points, or 1%, to 1,539.79, with technology leading gains among its 10 major industry groups, all of which advanced. It closed 25 points from all-time high hit on Oct. 9, 2007. The Nasdaq Composite COMP +1.32% climbed 42.10 points, or 1.3%, to 3,224.13."

"-— Asian markets rebounded Tuesday as a higher finish on Wall Street attracted buyers a day after most regional equities suffered a sell-off, with Japanese stocks extending gains on hopes for further monetary easing under a new central bank chief. The Shanghai CompositeCN:000001 +2.33% ended 2.3% higher, after slumping 3.7% on Monday for its worst loss since August 2011. The benchmark had briefly dipped into the red earlier in the session. Hong Kong’s Hang Seng IndexHK:HSI +0.10%  climbed 0.1%, Japan’s Nikkei Stock Average JP:100000018 +1.24% rose 0.3% and JP:100000018 +1.24% South Korea’s Kospi KR:SEU +0.60%  gained 0.2%. The S&P/ASX 200 index AU:XJO +0.96%  rose 1.3% in Sydney, holding on to most of its gains after the Reserve Bank of Australia left its policy interest rate unchanged at 3%."

"-Crude-oil futures settled higher Tuesday with a weaker dollar, a rally in equities and upbeat euro-zone and U.S. economic data fueling the commodity’s first climb in four sessions. Crude oil for April deliveryCLJ3 -0.02%  added 70 cents, or 0.8%, to settle at $90.82 a barrel on the New York Mercantile Exchange, holding between $90.02 and $90.99 for the session. Prices had marked their lowest settlement level of 2013 on Monday."

"-May Soybeans finished up 4 at 1466, 15 3/4 off the high and 7 up from the low. July Soybeans closed up 4 1/2 at 1447 3/4. This was 7 1/2 up from the low and 12 3/4 off the high.

May Soymeal closed up 1.8 at 435.5. This was 2.7 up from the low and 4.3 off the high. May Soybean Oil finished down 0.19 at 50.07, 0.68 off the high and 0.04 up from the low. May soybeans traded higher on the day but settled well off session highs despite positive export demand news this morning. The market continues to be well supported on setbacks due to growing concerns that the delays to vessel loading in the ports of Brazil will shift more demand to the US. The USDA reported this morning that US exporters sold 330,000 tonnes of soybeans to an unknown destination for 2012/13 delivery overnight. Exporters also sold 345,000 tonnes of soybeans to China for 2013/14 delivery. Local traders suggest that basis premiums in Brazilian ports continue to fall sharply lower as supplies build at loading facilities which might imply a rather large uptick in Brazilian soybean exports in the month of March vs. February. The US Gulf basis for soybeans had a steady to firm tone midday on good export demand interest according to some traders."

FCPO- Finding Base, Bears Still Controlling The Tempo.

Palm oil futures maybe halting its descend for the moment after it went down for the past five session since last week and the attempt to recover recently suggest we are yet out of the woods. Bears influence are still presence as Sellers are well prepared to Short when the price gone higher.  Market is likely hovering on sideline today with the range of 2,389~2,430 level as most of the trading participants are waiting for the fundamental data from MPOB this coming 10th March. Some might awaiting for the famous Dorab Mistry palm oil outlook before doing anything.  Technically for sideline approach, traders are advised to go Long when the benchmark May closing in 2,389 and put a safe Sell stop / Stop loss level a few points below that level. The same goes for upside, the benchmark May is expected to have some mild retracement if it approach 2,430 level today. Traders can go Short when the May contract went up around 2,430 level and place a Buy Stop / Stop loss few points above that level. Today, pivot support for the benchmark May is located around 2,389~2,382 while resistance is pegged at 2,421~2,430 area.

Daily Pivot Point
R2= 2444
R1= 2421
S1= 2382
S2= 2366
 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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