Commodity Weekly Report April 7 2013

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The US non-farm payroll grew at only 88,000 in March and dampened confidence of investors.

Weekly jobless claims rose to four-months high by rising to 385,000 filings for the week ended March 31.

On Thursday, Japan announced new stimulus of monthly injection seven trillion yen (US$72 Billion) in bonds purchase programme.

Both European Central Bank (ECB) and Bank of England (BoE) remain unchanged in interest rates but committed to existing measures to support the ailing economies.

Market interpreted humongous monetary floodgates would be opened in coming months by the four major central banks namely, US FED, Bank of Japan (BoJ), ECB and BoE.

Gold prices plummeted as we predicted last week. The market plunged from 1,603 regions to 1,539 levels before settling at 1,580 on Friday. This week, we reckoned the yellow metal would stay in weak demands with resistance emerging at 1,585 to 1,590 areas.

In our opinion, gold will soon become irrational again in mar­ket correlation to USDX as yen recedes too rapidly.

Beware of Dollar weakening against Euro to counter balance the yen but this may not push up the gold prices.

WTI Crude prices fell heavily from near to 98 highs but stood well at 92 regions as firm supports.

Oil prices have been hammered from slowdown in the US economy but the lower than expected pay­roll data put a strong selling pres­sure in liquidation on Friday.

This week, we reckoned techni­cal consolidation would emerge and trend might probably trade from 92 to 95.50 ranges.

Abandon your long-view should the bears engulf beneath 92 sup­ports.

Crude Palm Oil Futures (FCPO) on Bursa Derivatives continued to trade weaker due to the correlated selling pressure in Crude Oil and Soybean Oil markets.

The June contract closed at 2,356 with approximately 23,500 contracts.

This week, we reckon the trend would sit tight at 2,330 supports while crossing the first resistance 2,410 may climb higher to 2,500 regions.

Disclaimer: This report is written for general information only. No liability by the writers, publisher or any third party involved in the distribution of this work. Dar Wong and Chong HC are the market strategists in APSRI on CPO markets.

Wong has 22 years of trading and hedging experiences while HC traded for four years and now coaches institutional customers. They can be reached at www.traderpromaster.com.