[Dow Jones] Higher soyoil during Asian trading hours may provide some support to BMD CPO futures. "Soyoil prices are up on a technical rebound after a dip last Thursday. Also, investors are reluctant to push prices lower ahead of this week's (USDA) planting report," says trading executive at Kuala Lumpur-based
brokerage, adding this spells support for BMD CPO prices. May soyoil finished 25 points higher at 38.95 cents/pound on CBOT Friday; last trading 7 points higher on e-CBOT.
(shie-lynn.lim@dowjones.com)
Call us in Kuala Lumpur : +(603) 2026 1233;
Monday, March 29, 2010
DJ MARKET TALK: BMD CPO Futures May Open Little Changed
[Dow Jones] BMD CPO futures may open little changed to MYR5 lower, traders say. CPO futures will likely extend last Friday's 1.6% slide on rising palm oil inventory levels as output expected to improve in March, says Kuala Lumpur-based broker. Most traders peg today's trading range at MYR2,530-MYR2,570/ton, with support at psychological MYR2,500/ton level. Benchmark BMD June CPO futures ended MYR41 lower at MYR2,534/ton Friday.
(shie-lynn.lim@dowjones.com) Call us in Kuala Lumpur : +(603) 2026 1233;
(shie-lynn.lim@dowjones.com) Call us in Kuala Lumpur : +(603) 2026 1233;
CPO futures --RM2,500 is next logical target
The Kuala Lumpur CPO futures market plummeted for the third consecutive week in a row last week.
The benchmark June 2010 contract closed last Friday at a 7-week low of RM2,534, down RM43 or 1.67 per cent over the week.
The price slide in the past three weeks, from the recent peak of RM2,722 looks like quite a big fall. Some players think it's time for a correction, a technical rebound.
However, with no signs that this market is anywhere near its nadir in the present bear phase the road ahead still leads south, though it might be a winding one.
Several factors are weighing this market down.
The recent strength in the US dollar, for one, was a depressant for all world commodities which uses the greenback as a medium of exchange for trade.
Weakness of crude oil, due to big supply buildup pressures and the black goo's inability to scale pass and stay above the US$80 (US$1 = RM3.31) a barrel level was another.
But what really pushed this markets against the ropes last week was the latest and one should add, disappointing export estimates.
Export monitors Societe Generale de Surveillance (SGS) and Intertek Agri Services' (IAS) March 1-25 export estimates for the commodity amounted to an average of 1.12 million tonnes, or some 24,000 tonnes above that exported in the corresponding period in February.
That's a huge comedown, compared to the earlier March 1-15 average export estimate of about 654,000 tonnes which was 67,500 tonnes or 11.75 per cent above that for first half February.
The industry expects a pickup in production in March, which does not bode well for hopes for much of a decline in end-March 2010 stocks, if any.
Conclusion: The RM2,500 a tonne psychological level is the next logical target.
- BUSINESS TIMES
The benchmark June 2010 contract closed last Friday at a 7-week low of RM2,534, down RM43 or 1.67 per cent over the week.
The price slide in the past three weeks, from the recent peak of RM2,722 looks like quite a big fall. Some players think it's time for a correction, a technical rebound.
However, with no signs that this market is anywhere near its nadir in the present bear phase the road ahead still leads south, though it might be a winding one.
Several factors are weighing this market down.
The recent strength in the US dollar, for one, was a depressant for all world commodities which uses the greenback as a medium of exchange for trade.
Weakness of crude oil, due to big supply buildup pressures and the black goo's inability to scale pass and stay above the US$80 (US$1 = RM3.31) a barrel level was another.
But what really pushed this markets against the ropes last week was the latest and one should add, disappointing export estimates.
Export monitors Societe Generale de Surveillance (SGS) and Intertek Agri Services' (IAS) March 1-25 export estimates for the commodity amounted to an average of 1.12 million tonnes, or some 24,000 tonnes above that exported in the corresponding period in February.
That's a huge comedown, compared to the earlier March 1-15 average export estimate of about 654,000 tonnes which was 67,500 tonnes or 11.75 per cent above that for first half February.
The industry expects a pickup in production in March, which does not bode well for hopes for much of a decline in end-March 2010 stocks, if any.
Conclusion: The RM2,500 a tonne psychological level is the next logical target.
- BUSINESS TIMES
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