Thursday, April 5, 2018

FCPO: 3 Apr 2018: Soy Oil March Traded 0.36 cents Higher to 32.36 cents

3 Apr 2018: Soy Oil March Traded 0.36 cents Higher to 32.36 centsOn-Sho
re Ringgit Traded Firm RM3.8660 Per USD.

Palm oil futures retreat yesterday amid weak soy oil price action during Asia session. The soy oil for May was not moving up much in the morning session and travel slightly lower in the afternoon session. If that was not the main cause for the FCPO to retrace, perhaps the perception of the price has hit its current resistance point around 2,460 area would cause Sellers to get aggressive as price was starting to fade once it hit 2,465 level. Or you can say that there were less Buyers are willing to commit to Buy price higher than 2,465 as price did not breach above that level. Perhaps the only positive news palm oil futures to maintain its positive momentum would be improved demand announced by cargo surveyor for the month of Feb 2018. Other than that, palm oil futures is mostly Bearish in long term due to record high stockpiles level, export tax imposed by Malaysia trade policy, and strengthening Ringgit. The last two factors mentioned will cause palm oil to be price more expensive than our rival nation, Indonesia. For today, soy oil for May contract was traded 0.36 cents higher to 32.36 cents. Range for FCPO June is likely moving within 2,430 ~ 2,465.

 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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