Monday, March 11, 2013

Palm Oil Report Due To day 11th March 2013

Monday, 11th March 2013. The benchmark May did not gap up or went on rallying frantically last Friday even though Soy oil continue to surge on Thursday sessions. Other news to follow.

"-U.S. stocks on Friday notched weekly gains and the Dow Jones Industrial Average scored another record close, after data showed the nation’s jobless rate fell to a four-year low. After climbing as much as 83 points during the session and extending a winning run into a sixth session that has had it closing at record highs in recent days, the Dow Jones Industrial AverageDJIA +0.47% gained 67.58 points, or 0.5%, to 14,397.07. Just 14 points from its all-time record, the S&P 500 index SPX +0.45% added 6.92 points, or 0.5%, at 1,551.18, with consumer discretionary leading gains, which included all 10 of its industry. The Nasdaq Composite COMP +0.38% rose 12.28 points, or 0.4%, to 3,244.37, leaving it 2.4% ahead of last week’s finish."

"-Japanese and Hong Kong stocks rallied Friday, with the Nikkei Average supported by a drop in the yen and the Hang Seng Index helped by financials, in an otherwise range-bound session for Asia. After gaining 6.4% over the last six sessions, the Nikkei Stock Average JP:100000018 +0.75%  climbed another 2.6% Friday to close at a level last seen before the collapse of Lehman Brothers in 2008. Hong Kong’s Hang Seng Index HK:HSI +1.41% sat 1.6% in late afternoon trading, heading for a likely third gain in four sessions, while the Shanghai Composite IndexCN:000001 -0.24%  was up 0.2% late, after moving in and out of negative territory throughout the day. The rest of the region saw a relatively flat performance, with Australia’s S&P/ASX 200AU:XJO +0.08%  finishing 0.3% higher, as the China trade data pulled the market off early losses, while South Korea’s Kospi KR:SEU -0.90%  closed 0.1% lower."


"- Oil futures settled near $92 a barrel Friday to score a gain of more than 1% for the week, as strong import data out of China and a jump in U.S. nonfarm payrolls offered positive signals for demand, outweighing pressure from a rise in the dollar. Crude oil for April delivery CLJ3 -0.25% climbed 39 cents, or 0.4%, to settle at $91.95 a barrel on the New York Mercantile Exchange, trading between $90.83 and $92.03 after a 1.3% climb Thursday. Prices gained 1.4% for the week."

"-March soybeans opened 8 1/4 cents lower on the session at 1207 and established an early range of 1207 to 1225. A turn down in the US dollar and a bounce in equity markets plus a firm cash basis level helped to support a strong recovery from the opening to trade moderately higher on the session into the mid-day. On top of the weekly sales news, Taiwan buyers are in the market for up to 60,000 tonnes of US or South America soybeans. Net weekly export sales for soybeans came in at 308,400 metric tonnes for the current marketing year and 60,000 for the next marketing year for a total of 368,400. Cumulative soybean sales stand at 75.8% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 82.2%. Sales of 268,000 metric tonnes are needed each week to reach the USDA forecast. Meal sales came in at 74,700 metric tonnes as compared with a weekly average of 96,000 tonnes necessary each week to reach the USDA forecast. Oil sales were 6,700 metric tonnes as compared with 10,000 necessary each week to reach the projection."

FCPO- Bulls Are Here To Stay. 



The benchmark May refuse to rally much further from Thursday high on last Friday as market participants might be pausing from accumulating prior to palm oil data. All of the fundamental data will be release noon today and we might expect to see some significant movement in the market if the data came out beyond expectation. Stocks and export will be the head lines for today palm oil data. Positive momentum is likely to continue if the export data improve slightly and stocks does not add up much. Technically, the benchmark May has made a great come back recovering above previous high / resistance area around 2,440 on last Thursday, signifying strong indication that the Bulls have returned. Nonetheless, market is still susceptible for mild retracement over time but not some serious correction unless we receive unexpected negative news from palm oil data. For today, immediate support for the benchmark May is located around 2,433~2,426. Traders are advised to go Long around that support level and place a Sell Stop a few points below 2,426 if anything should go wrong. Traders can also went Short if the benchmark May does breach below today support level around 2,426 as it may retrace down the second pivot support level around 2,417.

Daily Pivot Point
R2= 2467
R1= 2458
S1= 2433
S2= 2417
 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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