Tuesday, 13th Jan 2015. Palm oil futures manage to recover on late of afternoon session after it retrace gradually on morning and early afternoon session. Soy oil dropped to 32.88 cents per pound or 2% yesterday. Other news to follow.
"-- The U.S. stock market ended Monday's session with losses for the second straight trading day, as a renewed sell-off in oil once again hit investor confidence. Energy, technology and financials, which collectively comprise nearly half of the S&P 500, led the losses. The S&P 500 SPX, -0.81% closed down 16.52 points, or 0.8%, at 2,028.29. The Dow Jones Industrial Average DJIA, -0.54%dropped 96.53 points, or 0.5%, to 17,640.84. The Nasdaq Composite COMP, -0.84%ended the day down 39.36 points, or 0.8%, at 4,664.71."
"-Oil futures plunged Monday, with the U.S. benchmark trading below the $46-a-barrel threshold for the first time in nearly six years after Goldman Sachs cut its crude outlook, predicting prices will remain low for a lengthy period. West Texas Intermediate crude oil for February delivery CLG5, -1.52% fell $2.29, or 4.7%, to close at $46.07 a barrel after trading as low as $45.90. The close was the lowest since April 2009. The move followed a 0.9% loss during Friday’s regular session on the New York Mercantile Exchange. WTI futures are down more than 57% from a June 2014 high of $107.26 a barrel. Meanwhile, Brent North Sea crude oil for February LCOG5, -5.81% the global benchmark, lost $2.68, or 5.4%, to $47.43 a barrel, its lowest finish since March 2009."
FCPO- The Market Is Deciding The Next Path, Hang In There.
Lets get straight to the point, palm oil futures is looking for further recovery as suggested on the longer term chart. Steady higher lows and higher highs can be spotted on hourly chart and these significant candle likely indicate price is positive to rise further. Maybe the right question would be, where would it continue to rise for this week. The answer will always be no one would know for sure, it is the trader's job to make sure he/she is part of that move, period. Most traders would want to relate yesterday substantial surge on afternoon session were likely due to palm oil production that slump about 22% for Dec vs Nov 2014, it was the lowest since 2006. Palm oil slow production was linked to worst flood on the eastern coast and southern part of Malaysia, the catastrophe just stop last week. With such a big dropped in production, it is likely support price from falling too steep, at least for this week. On the negative side, Soy oil for March contract plunge to 32.88 cents from 33.40 cents yesterday. We are going to see lower opening for March contract today, estimating at around 10 points to 20 points lower. Fortunately, the Bears have to work harder to change current Bullish sentiment to short term correction. Today, support level would be place around yesterday low, which is around 2,325 level. Bear in mind that the market might ignore most positive news if the price went down below 2,320 level this week. We are likely to see more correction if the March contract retrace lower than 2,320 level.
Daily Pivot Point
R2= 2397
R1=2379
S1= 2335
S2= 2309
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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