Saturday, May 14, 2011

Market overview, Crude-oil prices, CPO futures, US soybean may 15 2011

Market overview, Crude-oil prices, CPO futures, US soybean may 15 2011 :
-U.S. stocks finished lower Friday, pulling the Dow Jones Industrial Average into negative territory for the week, as investors fretted about the recovery and a week of upheaval in commodities. The Dow Jones Industrial Average DJIA -0.79% shed 100.17 points to close at 12,595.75, pulling the blue-chip index 0.3% lower for the week. “Now that earnings season is behind us, there is currently no good news to push stocks higher until we start to get the next quarter’s expectations, which should be very good,” said Keith Springer, president of Springer Financial Advisors.

Hong Kong and China shares rose on Friday to snap their weekly losing streaks but light trading volumes are likely to keep benchmarks within narrow chart levels in the near-term. Inflation remains a concern after a fifth increase this year in reserve requirements for China's commercial banks signalled that mopping up excess cash in the financial system and reining in prices remained a top priority for authorities. The benchmark Shanghai Composite Index closed up 1.0 percent on the day and 0.2 percent on the week to 2,871.0 points, Hang Seng Index rose 0.88% while Nikkei225 closed 0.7% lower on Friday.


-Crude-oil prices settled higher on Friday, staging a comeback in the last hour of floor trading to secure weekly gains of 2.5%, its best since early April. Light, sweet crude for June delivery CLM11 +0.69% gained 68 cents, or 0.7%, to $99.65 a barrel on the New York Mercantile Exchange.

-US soybean futures stumbled, as an initial push higher failed to gain traction after a rebound in the U.S. dollar guided prices lower on broader based speculative selling. CBOT July soybeans settled down 13 1/4 cents or 1% at $13.29 1/2/bushel. Soy-product futures slide, backpedaling in unison with soybeans. The combination of a firmer US dollar attracting speculative selling and slowing demand amid competition from South American supplies provided further pressure to pin prices in negative territory. July soyoil dropped 0.6% to 56.14c/pound.

Stock index reclaim its gain after it paused to go up on previous Thursday due to external factor. The temporary and mild correction that occur on previous Thursday shows that our stock market is likely to withstand steep correction like what happen on most regional indexes. Moreover, market has been recover well to overtook the major resistance above 1,540 level, signifying greater chance for this positive momentum to sustain. For today, the stock index may have some hiccups on the opening bell amid U.S Dow Jones industrial does closes lower on previous Friday. If there is no major rates concern over China's market that may raises the necessities for their authorities to raise rates, local stock market is likely to inches up.

P/S: Falling commodity prices are widely blamed for driving down stocks as investors believe declining oil prices are a sign that the economy is losing strength. .

Daily Pivot Point
R2= 1554
R1= 1548
S1= 1534
S2= 1526


CPO futures is likely to have hard time adjusting to the uncertainties over global commodities demand outlook as strengthening dollar is likely to weight down commodities prices. It is still elusive to tell whether the rise of dollar value is temporary or somewhat of technical rebound. Prolong effect will pressure commodities price to go down as commodities are mainly traded in dollars. If the dollar gains strength against other currencies, it takes fewer dollars to buy the same barrel of oil. Technically, the benchmark July is suggesting more upside to come judging from the higher low formation and recent export figures (10th May vs 10th April) have shown better than expected increment on palm oil consumption.

Daily Pivot Point
R2= 3328
R1= 3301
S1= 3238
S2= 3202
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. Source www.malaysiafutures.com...
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1 comment:

  1. The U.S. stocks constantly fluctuating results making investors fret over financial tactics. It can be a bit confusing to the individual trying to make educated decisions. It's worrisome that the soybeans market might crash . It is really difficult to find the right strategy during our current economic times .However, I will say that things are looking up because I found a great resource. Agriculture.com has an extraordinary site that has proficient data on the soybean market and prices. Although I work for them, I can genuinely say that I can really see what agricultural products are out there and if it would suit me at this time to invest in it. It has proven to be quite profitable and I would definitely recommend them.

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