Thursday, November 14, 2013
Monday, November 11, 2013
Technically market seemingly looking quite positive and the likelyhood to retest 2560-2570 today.
Posted by futures88 at 11/11/2013 04:33:00 PM
Saturday, November 2, 2013
Nov. 1 (Bloomberg) -- Palm oil advanced, sending futures into a bull market and capping the biggest weekly gain in almost three years, on speculation that rain may have reduced production in top suppliers Indonesia and Malaysia.
Futures rose 1.2 percent to 2,623 ringgit ($827) a metric ton on the Bursa Malaysia Derivatives, the highest close since September 2012. That’s 21 percent more than the 2,167 ringgit settlement on July 29, meeting the common definition of a bull market. Palm increased 7.3 percent this week, the most since 2010, and is heading for its first annual gain in three years.
Prices climbed on concern that output is less than analysts expected and that the start of the monsoon this month would further curb supply. While palm is produced year-round, output peaks from July to October. Several major plantations in Indonesia reported production unexpectedly fell 7 percent to 10 percent in the first 10 months because of rain and the growing cycle, said Derom Bangun, chairman of the palm oil board.
“It’s a combination of lower stocks and lower-than- expected production year-to-date from Indonesia,” Ivy Ng, an analyst at CIMB Investment Bank Bhd., said by phone from Kuala Lumpur. “The third quarter is the peak-production season and the fact that it’s not matching last year’s production has gotten people a bit excited.” Stockpiles are also lower, she said.
Inventories in Malaysia were probably 1.83 million tons last month, Ng wrote in a report today, lowering her estimate by about 3 percent. That’s 27 percent less from a year earlier and the lowest level for October since 2010, according to data from the palm oil board. Prices rose 12 percent in October 2010 and extended gains by 24 percent through December that year.
The commodity tumbled into a bear market in June 2012 as production outpaced demand. Concern that rains are curbing output contrasts with estimates of increasing supply from the U.S. Department of Agriculture. World production will advance 5 percent to 58.1 million tons, boosting stockpiles by 17 percent to an all-time high of 9.2 million tons, the USDA estimates.
“The price improvement could be sustained, although the upside may be capped” as palm’s discount to soybean oil narrows, Ng said in the report.
The gap shrank to $91.58 a ton, the smallest since May 2012 and compared with $379 in October last year. The 14-day relative strength index for palm was 78.8. Some traders see readings above 70 as a sign a drop in prices is imminent.
Soybean oil for December delivery advanced 0.9 percent to
41.72 cents a pound on the Chicago Board of Trade, while soybeans for January were little changed at $12.665 a bushel.Refined palm oil for May delivery gained 1.3 percent to end at 6,374 yuan ($1,045) a ton on the Dalian Commodity Exchange and soybean oil rose 1.2 percent to end at 7,302 yuan.
Posted by futures88 at 11/02/2013 12:02:00 AM
Friday, November 1, 2013
Oct. 31 (Bloomberg) -- Palm oil advanced to the highest level in a year, capping the largest monthly increase since 2010, on speculation that rain will disrupt harvests in Malaysia and as the high-production cycle ends this month.
The contract for delivery in January jumped 2 percent to
2,598 ringgit ($823) a metric ton on the Bursa Malaysia Derivatives, the highest close for most-active futures since October 2012. The surge in prices narrowed its discount to soybean oil to $103 a ton, the smallest since May 2012 and compared with $379 in October last year.
Prices surged 12 percent this month, the most since October 2010, on expectation that the monsoon season that usually begins in November would slow production. While palm oil is produced year-round, the peak is from July to October in Malaysia, the world’s second-largest supplier.
“The adverse weather in Malaysia is likely to hamper production in the upcoming months; it may cause some disruption to harvesting as well as complicate logistics,” Tan Chee Tat, an analyst at Phillip Futures Pte, said by phone in Singapore.
“Because of the kicking in of the monsoon season and the end of the high-production cycle, we’re expecting production to slow.”
Isolated showers and thunderstorms are predicted over Sabah, Sarawak and Johor, the biggest palm oil producing states, according to a seven-day outlook on the Malaysian Meteorological Department’s website.
Posted by futures88 at 11/01/2013 12:35:00 AM
Thursday, October 3, 2013
Peter Schiff Blog: Why Is China Buying So Much Gold?: “As the gold price fell almost 30 percent between January and June this year, the largest decline since 1983, some 585 tonnes of gold ETF ho...
Posted by futures88 at 10/03/2013 04:36:00 PM