Wednesday, October 31, 2012

20121031 1811 FCPO EOD Daily Chart Study.

FCPO closed : 2496, changed : -5 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histogram : weakening, buyer closing position.
Support : 2490, 2450, 2400, 2350 level.
Resistance : 2520, 2550, 2570, 2600 level.
Comment :
FCPO closed recorded small loss with declined volume transacted. Soy oil price currently trading higher after overnight closed little lower while crude oil price currently rising higher.
Price swing between gains and losses on higher productions and inventories level concern and both cargo surveyors ITS and SGS released higher but slowing down export data.
FCPO daily chart revised to suggesting a side way range bound market development.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

VEGOILS-Palm slips as high exports may do little to cut stocks
Wed Oct 31, 2012 2:01am EDT
* Palm oil prices capped by high production and growing
stockpile -analyst
    * October exports up 10.9 pct -ITS
    * Indonesia will not change its policy tax structure
    * Palm oil's target adjusted to 2,468 ringgit -technicals

    By Anuradha Raghu
    KUALA LUMPUR, Oct 31 (Reuters) - Malaysian palm oil futures
inched down on Wednesday as the strongest exports recorded for
this year may do little to cut into high stocks at a time when
output is surging in the world's second largest producer of the
edible oil.
    Cargo surveyor Intertek Testing Services data showed that
Malaysian palm oil shipments climbed 10.9 percent to 1.6 million
tonnes -- the highest this year, although stocks are set to hit
another record beyond 2.48 million tonnes.
    "Based on the shipment number, we will still end up with a
higher stockpile because October's production is still very
high," said OSK Research analyst Alvin Tai. "Exports rising
higher month-on-month is not surprising, but the quantum still
needs to be stronger."
    By the midday break, the benchmark January contract
on the Bursa Malaysia Derivatives Exchange fell 0.3 percent to
2,494 ringgit ($816) per tonne.
    Total traded volumes stood at 6,815 lots of 25 tonnes each,
nearly half of the usual 12,500 lots.
    Technicals showed that the bearish target of 2,379 ringgit
per tonne for Malaysian palm oil has been adjusted to 2,468
ringgit based on its falling speed, said Reuters market analyst
Wang Tao.
    Palm oil dropped to a two-week low earlier this week after
its biggest rival and top producer Indonesia planned to lower
monthly export taxes in November after international prices fell
this month.
    The lower taxes will lift margins for Indonesians and shift
demand away from competing Malaysian products. Officials in
Jakarta said they will not alter their tax structure which is
aimed at driving its domestic palm oil downstream industry.
    "The export tax structure is progressive and it has been
adjusted to fluctuated palm oil prices in the international
market," director general of agriculture-based industry Benny
Wachjudi said at an industry meeting.
    "It is very different from the Malaysian government's export
tax policy. I am sure Malaysian export tax policy will not last
long because it is not adjusted to the development on palm oil
prices in the international market."
    Brent crude held steady near $109 a barrel on Wednesday
after the huge storm Sandy whiplashed the U.S. East Coast,
reducing fuel demand even as refineries in the region gradually
resumed operation.
    U.S. soyoil for December delivery inched up 0.3
percent in early Asian trade. The most-active May 2013 soybean
oil contract on the Dalian Commodity Exchange rose 0.2
percent by the midday break.

No comments: