Tuesday, April 9, 2013

Better Palm Oil Data Anticipation Lift Price 9th April 2013

Tuesday, 9th April 2013. Palm oil futures manage to stay recovered substantially yesterday amid good expectation on fundamental data that will be announce on Wednesday, 10th April 2013. Other news to follow.

"- U.S. stocks shed Monday losses to end modestly higher as investors again viewed a market drop as a buying opportunity. The S&P 500 index SPX +0.63%   gained 9.79 points, or 0.6%, at 1,563.07, with consumer-related companies pacing the gains that included all but one of its 10 major sectors. After rising to a record closing high of 1,570.25 a week ago, the S&P 500 indexSPX +0.63%   declined 1% last week following the smallest increase in jobs in nine months and other reports on manufacturing and services also came in below expectations. After a 67-point fall during the day, the Dow Jones Industrial Average DJIA +0.33%   ended at 14,613.48, up 48.23 points, or 0.3%. The Nasdaq Composite COMP +0.57%   added 18.39 points, or 0.6%, to 3,222.25."


"-Japanese stocks soared Monday as the yen’s slide helped the market stand tall, even while some other Asian equities suffered from a cocktail of worries over the spread of bird flu in China, downbeat U.S. jobs data and North Korea’s aggression. Japan’s Nikkei Stock Average JP:NIK +0.88%  jumped 2.8% to end at 13,192.59, while gains for some mining stocks helped Australia’s S&P/ASX 200 AU:XJO +0.70%  post a modest 0.3% advance from two-month lows. China’s Shanghai Composite CN:000001 -2.54%  skidded 0.6% as the market reopened after a four-day weekend amid heightened worries over the spread of a new strain of bird-flu virus. Taiwan’s Taiex XX:Y9999 -2.39% slumped 2.4%, Hong Kong’s Hang Seng IndexHK:HSI -0.04%  ended marginally lower, and South Korea’s Kospi KR:SEU +0.51%  fell 0.4%."
"- Oil futures , recouping losses from the previous session and then some, as tensions between Iran and world powers and violence in Nigeria fed worries over global supplies. May crudeCLK3 +0.09% tacked on 66 cents, or 0.7%, to settle at $93.36 a barrel on the New York Mercantile Exchange."
"-May Soybeans finished down 10 1/4 at 1361 3/4, 11 3/4 off the high and 7 1/4 up from the low. July Soybeans closed down 8 at 1343 3/4. This was 7 1/4 up from the low and 9 1/4 off the high.
May Soymeal closed down 5.3 at 391.8. This was 1.5 up from the low and 5.8 off the high. May Soybean Oil finished up 0.28 at 48.83, 0.15 off the high and 0.53 up from the low.  May soybeans traded up double digits on the day after the sharp slide in prices last week. May meal and oil traded stronger as well although May soybean meal failed to take out its high from last Friday. Export Inspections were seen as slightly supportive the market sentiment but fell below week ago levels which hints at a slowdown in this area of demand. Shipments for the week ending April 4th were pegged at 15.25 million bushels, down from 16.3 the week prior. Inspections needed each week to hit the USDA export estimate are pegged at 5.56 million bushels, down from 5.9 the week prior. The overall shipment pace continues to run at an explosive pace with cumulative shipments now at 91% of the USDA export estimate vs. the 5 year average of 80%. Basis remains firm in most interior processing markets as farmer sales have shut off while CIF values were mixed to steady on light demand. H7N9 infections reached 21 people over the weekend with the death toll at 6. Officials in China asked citizens to avoid contact with live poultry in an attempt to stem a more serious outbreak. Thoughts that the outbreak of the virus could dampen consumer demand in China limited the upside and Dalian meal markets traded sharply lower overnight."

FCPO- Going Up Along With Better Expectation On Palm Oil Data

Closing at the day high, Bulls have made their presence felt yesterday. The optimistic price surge starting with market gaping up in the morning session signifies that market participants re-acted well to the positive palm oil data anticipation. Words out, crude palm oil stockpiles is expected to fall modestly for the month of end February. This news also explain why the market had to gap up and recover yesterday as current medium term perspective remain Bearish. The Bulls still have numbers of task to complete if it would want to reverse current Bearish trend to Bullish trend. Price have to keep recovering and staying above 2,400 level will be the first hurdle for the Bulls to achieve today. For short term, the benchmark Jun positive momentum "might" remain judging on yesterday closing price that went passed above resistance level around 2,396 but the 10-day high /resistance level remain at 2,402. In another words, the benchmark Jun need to breach again above this level to strengthen upside potential on short term. Traders could detect further recovery sign by looking at smaller time frame i.e: 15 minutes and look for any higher low and higher high candle formation. Nonetheless, the benchmark contract is likely hovering within today's pivot points prior to tomorrow MPOB and cargo surveyor data. Today, pivot support for Jun contract is located around 2,382 while resistance is pegged at 2,419.

Daily Pivot Point
R2= 2419
R1= 2409
S1= 2382
S2= 2365

 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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