Monday, January 30

Commodity Weekly Report 28 Aug 2011


WTI Crude prices stood firm at the 80.00 benchmark as it bounced higher to the 85.00 regions towards last weekend. We reckon that strong supports have been built up at S1–83.00 and S2–81.20 and might be tested again.

The market is likely to con­solidate and topside resistance is currently spotted at 88.00 levels. Abandon your long-view if the trend dips beneath 80.00 again.

Gold prices plunged US$210 from a high US$1,912 last week after CME Group raised the trading margin for COMEX Gold Futures.

On Friday, Bernanke spoke in Jackson Hole, Wyoming in an annual event and mentioned that Federal Reserve governors have a series of tools to ensure economic recovery. No stimulus policy was mentioned but gold reversed up with DJIA.

This week, we foresee gold pric­es retrace down to the S1–1750.00 regions as sideway correction occurs. The market is rather choppy now due to quick funda­mental changes to the strength of the US dollar. We have spotted S2 to lie at 1,730 and favour patience to be practiced for picking long trades here.

Crude Palm Oil (CPO) Futures on Bursa Derivatives closed sharply lower on Friday’s session due to uncertainty in the global economy. We foresee market vol­atilities to slow down due to the coming long holiday season.

Last Friday, the market turno­ver volume was approximately 23,511 lots. CPO Futures in Sep­tember, October and November contracts measured per tonne closed at RM3,100, RM3,016 and RM2,975 ton respectively.

Technically speaking, the mar­ket trend was still threading from the 2,910 to 3,090 regions though sentiment was bias to bearish outlook. We expect the resistance to act firm at 3,000 levels unless it is broken to prove the bullish turnover.

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 has traded for four years and now coaches institutional customers.
They can be reached at