CPO futures mart expected to hit new highs
Business Times
Monday - December 31, 2007
by W.Q. Mun
Positive investor sentiment and speculation could lift the Kuala Lumpur CPO futures market to a new high this week
OBSERVATIONS: The Kuala Lumpur CPO futures market bull stampeded through all overhead resistance barriers and surged to an all-time high last week.
The actively-traded March 2008 contract shot up to a new high of RM3,150 a tonne, up a whopping RM125 or 4.17 per cent over the week.
Today, the Kuala Lumpur CPO futures market looks set to end the year with a bang - and probably on a record high note too. That’s because the CPO futures bulls have got the bit between their teeth and there are plenty of positive factors and encouraging reasons why the bulls should continue chomping at the bit while partying into the new year.
For one thing, this market still has some way to go to play catch-up with the bellwether
The
Edible oil market analysts in general are agreed that soyabean oil is the leader in the world edible oil markets pack.
For another thing, crude oil, after having shot up from its early December low of around US$87 to above US$97 last week, is taking another shot at the US$100 (RM332) a barrel mark. World geopolitical tensions - the latest being Turkey’s bombing raids against the Kurds in oil-rich northern Iraq; and former Pakistan premier Benazir Bhutto’s assasination, among others - are keeping crude oil under a burner.
And if crude oil gushes past the century mark market players could take a new shine to palm oil because of the biofuel factor.
Conclusion: Positive investor sentiment and speculation could lift this market to a new high this week.
The RM3,170 immediate overhead resistance, basis the March 2008 contract, is the first speed bump this market faces its march up to a new high price plane.
