Thursday, October 17, 2013

Palm Oil Is On Bull Charge 17th Oct 2013

Thursday, 17th Oct 2013. Not only palm oil futures is on the heat, index futures on FKLI is going up rapidly due to positive progress from debt ceiling talk on U.S congress. Other news to follow.

"- U.S. stocks surged on Wednesday, lifting the S&P 500 near its record, as the Senate reached an agreement to reopen the government and raise the debt ceiling, with votes later in the day expected to end the fiscal standoff. Just 4 points, or 0.2%, from its Sept. 18 record close, the S&P 500 indexSPX +1.38%  climbed 23.46 points, or 1.4%, to 1,721.52, with financials and health care pacing gains among its 10 major industry groups. The Dow Jones Industrial Average DJIA +1.36% climbed 205.82 points, or 1.4%, to 15,373.83, with J.P. Morgan Chase & Co. JPM -0.13% leading gains that included all but three of its 30 components. The Nasdaq Composite COMP +1.20%gained 45.42 points, or 1.2%, to 3,839.43, its highest close since Sept. 8, 2000."

"- Asian stocks rose Thursday, bolstered by an agreement in Washington to reopen the government and raise the debt ceiling in time to meet a crucial deadline. apan’s Nikkei Stock Average JP:NIK +1.19% climbed 1.1%, as did the broader Topix index. Australia’s S&P/ASX 200AU:XJO +0.32%  rose 0.3%, paring its opening gains, and South Korea’s KospiKR:SEU +0.35%  picked up 0.5%. Japanese stocks were aided by the yen’s pullback against the U.S. dollar, which took strength from Washington’s agreement. The dollar USDJPY +0.04%  bought as much as ¥99.05 compared with ¥98.75 late Wednesday."

"-Oil futures settled back above $102 a barrel Wednesday as growing optimism that the U.S. government would soon reach an agreement to end the budget standoff and raise the debt ceiling helped prices recoup nearly all of what they lost a day earlier. November crude oil CLX3 -0.01%  climbed $1.08, or 1.1%, to settle at $102.29 a barrel on the New York Mercantile Exchange. It lost 1.2% on Tuesday to close at $101.21, the lowest settlement for a most-active contract since July 2, according to FactSet data."

"-November Soybeans finished up 9 1/2 at 1276 1/2, 3 off the high and 10 1/2 up from the low. January Soybeans closed up 8 3/4 at 1274 3/4. This was 10 1/4 up from the low and 2 3/4 off the high. December Soymeal closed up 1.4 at 403.8. This was 2.8 up from the low and 1.4 off the high. December Soybean Oil finished up 0.71 at 41.37, 0.37 off the high and 0.76 up from the low. November soybeans closed 9 1/2 cents higher on the session and experienced the highest close since October 10th. The market was trading up just 1 1/4 cents into the mid-session lows after trading as much as 10 1/2 cents higher on the day just ahead of the pit opening. The surge higher in the US stock market did not seem to help commodity markets earlier today as the rally also came with a bounce in the US dollar which helped to pressure select commodity markets. The dollar traded near the high end of a 1-month range. The dollar pushed back down to lower on the day and this allowed for a strong recovery off of the lows. Ideas that China demand remains strong for US soybeans due to strong crush margins and tight holding from Argentina producers helped to support the market early. The lack of much in the way of Midwest rains in the forecast for the next two weeks suggests active harvest period ahead and this may have been a factor to spark some selling. If there was a weekly export sales update for the morning, traders believe it would show near 1 million tonnes as compared with 525,182 tonnes last year at this time. Traders see meal sales near 200,000 tonnes. December soybean oil pushed sharply higher on the session and saw the best close since September 27th."

FCPO- External And Local Bullish Sentiment Help Price To Rally

Palm oil futures is getting all the help it need to rally further this week. With upcoming debt debate within the U.S officials that will likely pass eventually and recent Soy oil and Soy bean rally couple with positive report from export figures, palm oil futures is likely breaking most of the resistance you can come up with. I might sound dramatic and over Bullish perhaps but that is a highly anticipated scenario if the market is prep to go up. Technically, the new benchmark Jan 2014 contract has breached above six weeks high at least when it closed at the high at 2,410 level. And couple with yesterday Soy oil rally that took the Dec contract to 41.43 cents per pound, you will be likely to see at least 10 points gap up on today opening session. Higher lows and higher highs are making their presence in the hourly chart steadily for the past two weeks and FCPO is on the run to topple previous late August high around 2,485 level soon. Play of the day, get ready to go Long if the market pull back to pivot support level or just Long on open if the gap up is less than 15 points on morning session, there would be some juice left for the market to head upwards if it open gap up less than 15 points.

Daily Pivot Point
R2= 2434
R1= 2422
S1= 2385
S2= 2360
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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