KUALA LUMPUR (Dow Jones)–Crude palm oil futures on Malaysia’s derivatives exchange ended slightly higher Monday due to a combination of short covering, stronger export demand and pro-growth comments from the Chinese prime minister.
The benchmark August contract on the Bursa Malaysia Derivatives ended 0.1% higher at MYR3,098 a metric ton, dipping into the red in the last 30 minutes of trade after spending most of the session in positive territory and gaining as much as 1.2%.
Prices are oversold and due for a rebound after a two-week selloff but the euro-zone debt crisis will continue to limit the upside, traders said.
July soyoil on the Chicago Board of Trade was up 0.7% at 50.68 cents a pound as trade on the BMD ended.
Malaysia’s May 1-20 palm oil exports rose modestly, due to higher shipments to India and China, according to estimates by cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd.
Shipments rose 3.1% from the same period a month earlier to 865,570 tons, SGS said Monday. Intertek said Saturday that exports rose 2.1% to 862,337 tons.
“Palm oil’s fundamentals have not changed–exports are modestly up amid tight supply…the market is due for a rebound after heavy losses last week,” a trading executive in Jakarta said.
“Still, there is plenty of uncertainty about the euro zone so any further upside is likely to be capped at MYR3,300/ton.”
Palm oil prices have fallen more than 11% over the past five weeks, due to signs that China’s economy is slowing sharply and fears that Greece might leave the euro zone.
A weaker dollar versus the euro also supported palm oil prices Monday. Dollar-denominated commodities become cheaper to holders of other currencies when the greenback weakens. Widely sold refined, bleached and deodorized palm olein is priced in dollars.
In the cash market, refined palm olein for July/August/September shipment was traded from $1,027.50/ton to $1,035/ton, October/November/December at $1,020/ton, a physical market broker in Singapore said.
Cash CPO for prompt shipment was offered unchanged at MYR3,120/ton.
Open interest on the BMD was 115,044 lots, versus 117,072 lots Friday. One lot is equivalent to 25 tons.
<<< Lazy to Update New Chart Bcoz the Range still the same :p >>>
CPO DAY TRADE SnR
Resistance
3119 3135 3150 3166
Support 3077 3061 3046 3030
CPO BOX TRADER
3036 become a critical pivot area... here a retrace / where to short area and support / where to PT ( Profits Taking Area )
Shorting Area for a Retracement if market fail to breakthrough 3036
3262 - 3332 - 3401
Long Area / Profit Taking Zone if market manage to breakthrough from 3036 factor
2670 - 2444 - 2217 - 2078
No comments:
Post a Comment