CPO prices fall sharply
The Star
CPO prices fall sharply
by G. M. Teoh
Slump linked to global financial markets slide, losses in soyoil prices
CRUDE PALM OIL
CRUDE palm oil futures prices at the Bursa Malaysia Derivatives fell sharply on aggressive long liquidation linked to the collapse in the world’s financial markets, losses in soyoil prices and rising crude palm oil production.
Prices sank in late trading to an eight-week low and recovered slightly in the final minutes of trading on short covering and light speculative buying strength and finally settled the week with large losses.
Export estimates had no impact on trading last week. Societe Generale de Surveillance estimated the Malaysian palm oil products exports for the first 15 days of August to be sharply higher by 25.2% to 588,658 tonnes from the same period a month ago.
The October futures prices slide from a weekly high of RM2,530 to RM2,346 and closed on Friday at RM2,398, off RM117 per tonne from a week ago.
Total volume for the week surged to 72,197 contracts from 57,532 contracts a week ago. Open interest as at Thursday’s close eased marginally to 69,248 contacts from 69,398 contracts previously.
The daily candlestick chart closed the week bearish and called for further sideways to lower trading. The steady downward pattern showed that the immediate-term momentum of the market is still bearish.
The October futures have an immediate chart support at the RM2,370-RM2,350 level this week and the downward cycle is expected to continue if this support is breached. Chart resistance for this week is seen lower at the RM2,430-RM2,450 level.
The daily oscillators ended the week mostly bearish and suggested that the market is in a bearish phase. The daily stochastic triggered the sell signal on Aug 3 and remained negative on Friday’s close. The oscillators per cent K and D finished lower at 36.78% and 56.95% respectively. Meanwhile, the 3- and 7-day exponentially smoothed moving average price lines (ESA lines) remained in bearish divergence after having triggered the sell signal on Aug 3. The five-day Relative Strength Index (RSI) ended lower near the oversold territory at 35.24 points. Analysis of the RSI indicates that the market’s immediate underlying strength is negative.
November 5th, 2008 at 10:26 am
besides CPO prices, how could I found or knowing about the prices of as we called Tandan Buah Segar ( TBS) or (Palm fresh fruit ? )as a raw material before CPO ? , thanks for your kindness..