Market Review / Outlook of the day

1 ноября 20231 ноя 2023

2 мин

Market Review / Outlook of the day Primary Sentiment : Neutral Immediate Trend : Neutral BMD Market Re-cap: - BMD FCPO fell for the second day in a row as Chinese vegetable oil prices fell and the Malaysian currency strengthened more. - Malaysian palm oil exports rose 6.6% and 8.9% in October from September, according to cargo surveyors Intertek Testing Services and AmSpec Agri. - Weak China's economy is considered as vulnerable to demand, strengthening calls for further stimulus measures. Palm oil investors are afraid that China's demand for the world's most popular cooking oil may fall. - The U.S. soybean harvest continued to progress faster than the average pace despite recent rains, adding to the selling pressure in palm oil. A faster harvest pace is likely to increase supplies of soybeans and their products, including soybean oil. World Oil and Grains - CBOT soybean futures rebounded on Tuesday as traders kept an eye on South American crop weather as hot and dry weather swept acro

Primary Sentiment : Neutral

Immediate Trend : Neutral

BMD Market Re-cap:

- BMD FCPO fell for the second day in a row as Chinese vegetable oil prices fell and the Malaysian currency strengthened more.

- Malaysian palm oil exports rose 6.6% and 8.9% in October from September, according to cargo surveyors Intertek Testing Services and AmSpec Agri.

- Weak China's economy is considered as vulnerable to demand, strengthening calls for further stimulus measures. Palm oil investors are afraid that China's demand for the world's most popular cooking oil may fall.

- The U.S. soybean harvest continued to progress faster than the average pace despite recent rains, adding to the selling pressure in palm oil. A faster harvest pace is likely to increase supplies of soybeans and their products, including soybean oil.

World Oil and Grains

- CBOT soybean futures rebounded on Tuesday as traders kept an eye on South American crop weather as hot and dry weather swept across northern Brazil.

- Rains in Argentina have reduced the risk of more yield loss, causing prices to fall in recent days.

- Sporadic rains will temporarily improve topsoil moisture for soybeans and corns in northern Brazil. However, analysts stated that Brazil's center and northern regions require more rainfall.

- The USDA acknowledged that 239,492 metric tons of U.S. soybeans were sold privately to Mexico.

Market Outlook

- Palm oil formed another bearish candlestick yesterday, remaining in the consolidation zone of RM3,600 to RM3,800. Price started at RM3,740 and reached a high of RM3,755 before falling to a low of RM3,660 and eventually settling at RM3,679. Nothing has changed in the present price forecast, as the market remains in neutral territory.

- Today's opening price is likely to be lower due to the poor performance of Dalian palm oil and U.S. soybean oil. A tendency towards lower trading is anticipated, with immediate support remaining at RM3,600.

Opening range: 3670 to 3680

Projected range of the day: 3550 to 3750

Support 3550 Next 3500

Resistance 3850 Next 3900

BMD FCPO Total Open Interest

16/10/2023: 228,528 (-1,635)

17/10/2023: 226,044 (-2,484)

18/10/2023: 224,020 (-2,024)

19/10/2023: 223,998 (-22)

20/10/2023: 224,055 (+57)

23/10/2023: 222,092 (-1,963)

24/10/2023: 212,102 (-9,990)

25/10/2023: 211,404 (-698)

26/10/2023: 215,447 (+4,043)

27/10/2023: 212,089 (-3,358)

30/10/2023: 211,928 (-161)

31/10/2023: 213,479 (+1,551)

Source: Bursa Malaysia Futures