Salam Semua...
Quoted from Business Times, 09.8.2010;
The Kuala Lumpur Crude Palm Oil (CPO) futures market saw bullish action last week. The bull run was triggered off by the setting off of a bear trap, and ramped up by fierce and frantic short-covering. The October 2010 contract rose to an eight-month high, closing last Friday at RM2,661 a tonne, up RM144 or 5.72 per cent over the week.
The technicals had indicated the previous week that this market was prime for a technical rebound - and raring for bullish action. All it needed was a spark, and the market's fuse was lit for the lift-off. Some market observers saw the latest export estimates as the "spark" that sent prices rampaging up the price chart. Export monitors Societe Generale de Surveillance (SGS) and Intertek Agri Services' (IAS) July 1 to July 25 export estimates averaged 1.406 million tonnes, up 60,000 tonnes or 4.47 per cent compared to that of the similar period in June.
Buying and short-covering snowballed on market-inciting talk that Bangladesh would be buying in a big way to stock up on cooking oil ahead of the Hari Raya Puasa festive season, slated to start on September 10. But others saw the bull run in wheat prices, set off by drought and wildfires in Russia which has destroyed a fifth of its crop, as the real "spark".
No comments:
Post a Comment