Tuesday, August 5, 2014

FCPO: Dry U.S Weather Might Help Soy Bean Price To Recover 5th Aug 2014

Tuesday, 5th August 2014.   Palm oil futures closed lower yesterday after it recover from a steep gap down on early morning session. Other news to follow.

"-U.S. stocks rallied on Monday and recouped some of the heavy losses from last week’s rout, but investors remained cautious over the timing of the Federal Reserve’s interest-rate hikes. The S&P 500 SPX +0.72%  closed 13.8 points, or 0.7%, higher at 1,938.99, its first gain in three sessions. The Dow Jones Industrial Average DJIA +0.46%  added as much as 102 points during the session, before finishing the day 75.91 points, or 0.5%, higher at 16,569.28 and snapping a four-day losing streak. The Nasdaq Composite COMP +0.72% rose 31.25 points, or 0.7% to 4,383.89. The data calendar was empty for Monday and few companies reported earnings. Instead, investors focused on last week’s performance, which included the biggest weekly drop in two years for the S&P 500 SPX +0.72% . While Friday’s jobs report wasn’t as strong as expected, the data over the week provided more evidence that the economy continues to gain momentum, which in turn makes it more likely the Federal Reserve could raise interest rates sooner than expected.

" Here are the closing levels for Asia's major stock markets: Tokyo (Nikkei Average) down 0.3% (closed) ; Hong Kong (Hang Seng Index) up 0.3% (closed) ; Shanghai (Shanghai Composite Index) up 1.7% (closed) ; Sydney (S&P/ASX 200) down 0.3% (closed) ; Seoul (Kospi) up 0.4% (closed) Taipei (Taiex) up 0.7% (closed) Aug. 4, 2014, 4:08 a.m. EDT."

"-Crude-oil futures rose Monday, recouping some of their steep losses last week and notching their largest one-day percentage increase in nearly two weeks. On the New York Mercantile Exchange, light, sweet crude futures for delivery in September CLU4 +0.07%  ended at $98.29 a barrel, up 41 cents, or 0.4%. That broke a five-session losing streak. September Brent UK:LCOU4 +0.01%  crude on London’s ICE Futures exchange rose 57 cents, or 0.5%, to end at $105.41 a barrel."

FCPO- Palm Oil Futures Like Recover On Rival Oil 

With the new support level situated around 2,246, palm oil futures likely found some base to recover for the moment. News out that Soybeans poised for biggest advance in week on dry U.S. weather, and this alone might give some cheer to the Soy bean oil market to recover too, hopefully. Palm oil futures is likely follow this lead as the progress so far for Soy bean oil recover is underway. The most actively traded Soy oil went up about 60 points overnight from 35.40 cents to 35.92 cents per pound as the time of writing today. Hence we are likely to see 10~20 points gap up this morning due to that positive recovery on Soy bean oil alone. Not all news is good for palm oil market, recent diminishing export figures might curb palm oil futures to recover substantially. Palm oil demand is slowly deteriorating as we speak, recent Ramadhan festival does not help much for palm oil export to increase. Technically, the Oct contract manage to slow downed its descend yesterday when it start recovering and closed at day high at 2,268 level, a good sign that Bulls are able to take control at the closing bell. Although long term technical perspective remain Bearish, we are likely looking at further price recovery if the Oct contract could open higher than 2,270 this morning. For today, pivot point for support is located around 2,257 level while resistance is pegged at 2,280 followed by 2,300.

Daily Pivot Point
R2= 2280
R1= 2274
S1= 2257
S2= 2246
 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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