Thursday, December 5, 2013

FCPO: Price Hike And Did I Say So ? ?

Thursday, 5th Dec 2013. Palm oil futures rose for the first time yesterday after it went down for some correction for the past three session this week. Other news to come.

"-U.S. stocks ended mostly lower on Wednesday, with the S&P 500 and the Dow Jones Industrial Average extending their losing streak to four straight sessions.

Upbeat economic reports appeared to reinforce worries that later this month the Federal Reserve could start to taper its bond-buying program that has supported equities. The main indexes had all moved into positive territory following a report of progress toward a U.S. budget deal, but those gains faded. The S&P 500 SPX -0.13%  dipped 2.34 points, or 0.1%, to close at 1,792.81, retreating further below the milestone level of 1,800. The Dow Jones Industrial Average DJIA -0.16% fell 24.85 points, or 0.2%, to end at 15,889.77, staying below its own big round number of 16,000. The Nasdaq Composite COMP +0.02% bucked the negative trend, rising 0.80 point to finish at 4,038. The tech-heavy index snapped a two-day losing streak and held above the 4,000 level."
"-Japan’s Nikkei fell sharply on Wednesday as the yen regained some lost ground overnight, while the Australian dollar tumbled after the country posted disappointing third-quarter growth data. The tone for Asia was cautious as regional markets dropped ahead of the November labor report from the U.S., out on Friday—a much-watched indicator used to gauge whether the Federal Reserve will start to roll back its bond-buying program. The October report came out well above forecast, raising expectations that another strong increase in jobs could prompt the Fed to start withdrawing it stimulus—a key driver of markets this year. The other major market to make a substantial move in Asia was China, where the Shanghai Composite CN:SHCOMP +1.31% moved 1.3% higher to 2251.76, Elsewhere in the region, South Korea’s Kospi KR:SEU -0.03% lost 1.1% to 1986.80, Hong Kong’s Hang Seng Index HK:HSI -0.76%  fell 0.8% to 23728.70 and Singapore’s Straits Times Index SG:STI -0.60%  was down 0.9% late in Asia."
"-January Soybeans finished up 9 3/4 at 1329 1/2, 5 1/4 off the high and 18 up from the low. March Soybeans closed up 7 3/4 at 1312 1/4. This was 14 up from the low and 5 1/4 off the high. January Soymeal closed up 1.5 at 430.3. This was 6.3 up from the low and 4.3 off the high. January Soybean Oil finished up 0.24 at 40.35, 0.12 off the high and 0.3 up from the low. January soybeans closed 9 3/4 cents lower on the session as speculative buying emerged to support the market on the early break and active buying in March calls added to the positive tone and helped spark buying support. Ideas that demand news should remain strong and that China may emerge again soon helped to support. The market was trading up as much as 15 cents higher into the pit opening. The break early this morning managed to hold above the lows from yesterday and buying emerged on continued talk of strong near-term demand. Stats Canada pegged canola production at 19.96 million tonnes which was well above trade expectations at 16.9 million and their last estimate of near 16 million. This, along with a massive wheat projection helped spark the early weakness. Traders see good weather in South America for the crop but meal strength helped to pull the market higher into the mid-day. January meal and oil both closed moderately higher. A firm gulf basis was also seen as a supportive factor today and higher trade in gold was also a plus. Traders see weekly export sales at just over 1 million tonnes for the report in the morning. Meal sales are thought to be near 275,000 tonnes and oil sales near 30,000."

FCPO: Flood On Certain Part Of Malaysia Spur Rally

Yes, you heard it right, flood on certain part in the country is the likely caused for the price to be supported so far. The area that have been affected in the country is central Pahang and Southern region, Johor. Those state are also center of palm oil plantations and production are situated and if the weather does not improve quickly, productions will likely slow until the first quarter next year. Palm oil futures is likely gap up today judging from recent recovery on Soy oil as well. The most active traded Soy oil contract went up another 0.12 cents to 40.49 cents per pound as the time of writing, over coming past two session high. Long term perspective for the benchmark Feb remain positive with noticeable higher highs and higher lows being formed. No trouble for the market to go up in the hourly and minutes time frame as both short term and medium time frame are also showing promising signs of recovering further. Yesterday, the benchmark Feb went up to 2,659 level, blowing past the high since 2nd Dec 2013. For today, look no further to Long when the benchmark Feb contract went past above 2,660 level while market is likely giving you more opportunity to go Long if it traded lower in the afternoon session, just maybe. Pivot support for the Feb contract is located at 2,629 while resistance is pegged at 2,688

Daily Pivot Point
R2= 2688
R1= 2672
S1= 2629
S2= 2602
 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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