Tuesday, June 10, 2014

FCPO: Some Action Expected Today 10th Jun 2014

Tuesday, 10th Jun 2014. Palm oil futures ended unchanged yesterday as the benchmark August closed at 2,412 level, same goes to Soy oil was traded around 39.28 cents per pound.

"- The U.S. stock market ended Monday’s choppy trading session slightly higher, as both the S&P 500 and Dow Jones Industrial Average closed at record levels. The S&P 500 SPX +0.09%  closed up 1.83 points, or 0.1%, to 1,951.27, hitting a record level for the 19th time this year. The Dow Jones Industrial AverageDJIA +0.11%  rose 18.82 points, or 0.1%, to 16,943.10. The blue-chip index closed at a record level for the 9th time in 2014. The Nasdaq Composite COMP +0.34% ended the day up 14.84 points, or 0.3%, at 4,336.24."

"- Asian stocks ended mixed on Friday ahead of the release of the widely watched U.S. monthly employment report. Japanese shares ended little changed, with the Nikkei Average JP:NIK -0.25% down 2 points at 15,077.24. The broader Topix index JP:I0000 -.00% edged up 0.2%, while the yenUSDJPY -0.14% turned a little stronger versus the greenback, trading at ¥102.288 from ¥102.427 on Thursday. Australian stocks shot higher, lifted by financial stocks. The S&P/ASX 200 AU:XJO +0.44%settled up 0.5%, while the Aussie AUDUSD -0.02% strengthened to 93.53 U.S. cents from 93.28 U.S. cents in the previous session. However, Hong Kong stocks moved off its opening high and suffered a further sell-off near the close, with the Hang Seng Index HK:HSI +0.38% finishing 0.7% lower. Over on the mainland, the Shanghai Composite Index CN:SHCOMP +0.03% declined 0.5%. Amid the sell-off in Hong Kong, state-owned Bank of China HK:3988 +0.54% was the most-heavily shorted stock, with a short-selling turnover of more than 553 million Hong Kong dollars ($71.3 million). Bank of China shares tumbled 2.2%. Other major state banks also retreated, including China Construction Bank Corp. HK:0939 +0.52% , down 1.4%, Agricultural Bank of China HK:1288 +0.83% , off by 0.6%, and ICBC HK:1398 +0.19% , down 0.2%."

"- Oil futures climbed above $104 a barrel on Monday to settle at their highest level since early March, as signs of improving economies in China and Japan and stimulus measures by the European Central Bank raised the outlook for energy demand.  Crude oil for July delivery CLN4 +0.28% rose $1.75, or 1.7%, to settle at $104.41 a barrel on the New York Mercantile Exchange. Tracking the most-active contracts, prices haven’t closed at a level that high since March 3, according to FactSet data. The day’s dollar and percentage gains were the largest in about two months."

FCPO- Sideways Before The Storm. 


Palm oil futures is travelling on sideways note between 2,420~2,390 level for the moment unless there is some solid pointer we can use from the MPOB report due to release today. The expectation for MPOB report would be 1% to 3% increment on inventory and production while 6% to 11% growth on export for the month of Jun 2014. These are slightly Bearish report for the current benchmark August futures contract if the MPOB report came out within expectation. Technically, the price action still fall within sideways mode within 2,390 to 2,420 level, with long term perspective remain Bearish. Some may say the palm oil futures is consolidating but it is easier to identify this kind of market cycle as sideways. We might looking at possible short term recovery if the benchmark August manage to breach above 2,420~2,425 this week or resuming its Bearish trend if the immediate support at 2,390 is taken out today. Higher resistance is pegged around 2,450 level while market would fall even further if the benchmark August cannot hold its previous support level at 2,375. For today, pivot support is located around 2,395 while resistance is pegged at 2,427.

Daily Pivot Point
R2= 2,441
R1=2,427
S1=2,395
S2=2,377
 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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