Weakness Still Prevail 28th Feb 2013

Thursday, 28th Feb 2013. Palm oil futures is yet escape out from Bears domination so far as it failed yesterday recovery. Other news to follow.

"- A powerful U.S. stock rally Wednesday lifted indexes to their best session since Jan. 2, as a positive report on housing and the Federal Reserve chief’s commitment to stimulus overrode concerns that had battered stocks earlier in the week. After fluctuating early on, the Dow Jones Industrial Average DJIA +1.26% climbed more than 200 points and ended up 175.24 points, or 1.3%, at 14,075.37. All but one of the Dow’s 30 components advanced. The session was the strongest since the blue chips clocked a 300-plus-point gain on Jan. 2, the first trading day of the year. Wednesday also marked the first back-to-back days of triple-digit gains since the year’s start. The S&P 500 index SPX +1.27% added 19.05 points, or 1.3%, to 1,515.99. All 10 sectors were higher, led by industrials and materials sectors. It was also the S&P 500’s best day since Jan. 2. The Nasdaq Composite COMP +1.04% climbed 32.61 points, or 1.04%, to 3,162.26, its best day since Feb. 5."

"-Stocks in Asia mostly rose Wednesday as U.S. economic data and comments from Federal Reserve chief Ben Bernanke helped lift the mood in global markets. Hong Kong’s Hang Seng Index HK:HSI +0.25%  advanced 0.3% and China’s Shanghai Composite CN:000001 +0.87%  rose 0.9%. South Korea’s Kospi KR:SEU +1.20%  climbed 0.2%, Australia’s S&P/ASX 200AU:XJO +0.77%  advanced 0.7% and Taiwan’s Taiex XX:Y9999 +0.22%  added 0.2%, while Japan’s Nikkei Stock Average JP:100000018 +2.02%  defied to broad trend to decline 1.3%."

"-  Oil futures saw a modest gain Wednesday to recoup a small portion of their losses from a day earlier, when prices finished at their lowest level of the year. April crude CLJ3 +0.38% tacked on 13 cents, or 0.1%, to settle at $92.76 a barrel on the New York Mercantile Exchange."

"-May Soybeans finished up 6 1/4 at 1438, 10 3/4 off the high and 13 up from the low. July Soybeans closed up 7 1/2 at 1426. This was 15 up from the low and 8 1/4 off the high.

May Soymeal closed up 1.8 at 428.6. This was 4.3 up from the low and 3.7 off the high. May Soybean Oil finished up 0.26 at 49.65, 0.25 off the high and 0.38 up from the low. May soybeans traded higher on the day but fell well off the session highs midday and saw sell pressure at the closing bell. Traders noted interest in buying the July vs. November calendar spread as the market attempts to ration US domestic crush demand. Buying support was also found as the market monitors the long delays to load soybean vessels in Brazil. Soybean basis in the US was steady to slightly weaker as the barge markets back off slightly and domestic crush margins contract modestly. The USDA reported this morning that US private exporters sold 120,000 tonnes of US soybeans to an unknown destination for the 2012/13 marketing year. Exporters also sold 120,000 tonnes of soybeans to China for the 2013/14 marketing year. Weather conditions in South America are mixed this week with Argentina drying down slightly today and tomorrow until showers come back on Friday. Brazil continues to see a favorable mix of scattered showers and non-threatening temperatures."

FCPO- Further Weakness Still Possible.

Commodity futures closed lower yesterday after it retrace swiftly from morning session recovery on afternoon session. Palm oil futures is having tough time to shake off the Bearish tune of the market currently based on yesterday failed rally. The benchmark May went up to 2,443 level and start retracing right after it hit that level. The temporary recovery that went dead yesterday is not the Bullish sign we are looking for market recovery. But we will see more of these temporary rally come to play before it is safe to say that the benchmark has record the first recovery sign. Based on technical perspective, palm oil futures is still gripped by Bears influence as there was another lower high and lower low candle formation formed yesterday (hourly chart). There are two possibilities for today palm oil movement, open lower and kept on going lower with no known support for it or open lower but recover the next minute. Market is likely hovering into sideways for the second possibilities. For today, pay attention to the first pivot support and resistance level as market might be travelling within these range for the moment.

Daily Pivot Point
R2= 2464
R1= 2437
S1= 2389
S2= 2368
 Disclaimer: Information and opinions contained in this report are for educational purposes only. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness.