Crude palm oil (CPO) futures on Bursa Malaysia Derivatives is expected to be firmer next week due to adverse weather conditions, dealers said. They said the market would also move in line with soyoil prices on the Chicago Board of Trade amid continued buying momentum from China, Europe and India
"The on-going soybean harvesting in North America, which would see a bumper crop, and weather developments in South America might affect commencement of planting schedule," an analyst said. The analyst said local palm oil output remained modest amid the uncertain weather condition while stockpile was expected to decline in the seven months through July.
"The on-going soybean harvesting in North America, which would see a bumper crop, and weather developments in South America might affect commencement of planting schedule," an analyst said. The analyst said local palm oil output remained modest amid the uncertain weather condition while stockpile was expected to decline in the seven months through July.During the week, CPO prices were higher in line with other commodities prices. CPO prices climbed to a 16-month high due to growing demand, supply cutback and excess rain which was hurting harvest.
On a Friday-to-Friday basis, October 2010 rose RM4 to RM2,746 per tonne, November 2010 added RM30 to RM2,729 per tonne, December 2010 increased RM32 to RM2,733 per tonne and January 2011 increased RM37 to RM2,741. The week's turnover stood at 89,219 lots, up from last week's 62,672 lots while open position rose to 68,718 contracts on Friday from 65,708 contracts previously. On the physical market, October South was traded higher at RM2,750 per tonne on Friday compared with RM2,740 per tonne last Friday.
December Soybean Oil finished down 1.26 at 43.83, 1.41 off the high and 0.17 up from the low.SOYBEAN OIL (DEC) 04 Oct 2010: Momentum studies trending lower from overbought levels is a bearish indicator and would tend to reinforce lower price action. A negative signal for trend short-term was given on a close under the 9-bar moving average. The outside day down is somewhat negative.
The market is in a bearish position with the close below the 2nd swing support number. The next downside target is 42.56. The next area of resistance is around 44.62 and 45.72, while 1st support hits today at 43.04 and below there at 42.56.CPO Recommend
SELL INTO STRENGTH
No comments:
Post a Comment