Tuesday, August 20, 2013

Lights Still Green 20th Aug 2013

Tuesday, 20th Aug 2013. Palm oil futures continue to show sign of recovery after independent cargo surveyors reported rise in export, 1-20th also due today. Other news to follow.


"-U.S. stocks dropped on Monday after a choppy trading session, with the energy and financial sectors leading the S&P 500 lower, as Treasury yields hit fresh two-year highs.

The Dow Jones Industrial Average DJIA -0.47% fell 70.73 points, or 0.5%, to end at 15,010.74, with 23 of its 30 components ending in negative territory. The S&P 500 SPX -0.59% declined 9.77 points, or 0.6%, to 1,646.06. This was the fourth consecutive session of declines for both the Dow industrials and the S&P 500, marking the longest losing streak since Dec. 28, 2012, when the market fell for five straight trading days. More than 640 million shares traded on the New York Stock Exchange and composite volume topped 2.8 billion. The Nasdaq Composite COMP -0.38%  fell 13.69 points, or 0.4%, to 3,589.09."
"-Most Asian stocks retreated Tuesday after a fourth straight day of losses on Wall Street, with Australian shares also taking a hit on the back of some disappointing earnings reports.
Japan’s Nikkei Stock Average JP:NIK -0.50%  fell 0.7% to give back most of the gains recorded the previous day, and Australia’s S&P/ASX 200 AU:XJO -0.66%  also dropped 0.7%, on course for what would be its fifth consecutive lower finish. South Korea’s Kospi KR:SEU +0.05%  gained 0.1% in choppy trade."
"- Oil futures settled lower Monday, putting an end to a six-session rally, but prices held above $107 a barrel as traders continued to assess the potential for supply disruptions on the back of continued unrest in Egypt.
Crude oil for September delivery CLU3 -0.09%  lost 36 cents, or 0.3%, to settle at $107.10 a barrel on the New York Mercantile Exchange, holding tight to a trading range of a little over a dollar. Prices gained 0.1% to settle at $107.46 on Friday, the highest close for a most-active contract since Aug. 1, according to FactSet data."
FCPO- 1-20th Export Figures Due To Release Today.

Palm oil futures is on the run to topple monthly high if the today's export figures continue to record positive data. The benchmark Nov rose about RM35 to 2,338 yesterday, making another new high. Bulls are running with full force for the moment but any bad news on the demand figures would likely negatively impact price to rise further. Technically, there is no sign for the benchmark Nov to stop its positive momentum yet up until now unless it breach below 2,326 today, the first support level. Daily chart still show good chance for the market to recover further. We still have much to expect for the palm oil futures to rise further, the export figures have to increase more percentage than how much palm oil productions is rising. Palm growers are stepping up on the productions figures due to favorable weather condition. Another support for the palm oil futures to rose so far was Soy oil. Soy oil sentiment was lifted by improve demand and better ending stocks expectation on USDA report last week. For today, pivot support for the Nov contract is located around 2,321~2,326 while resistance is pegged at 2,349.

Daily Pivot Point
R2=2360
R1=2349
S1=2321
S2=2304
 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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