ATHENA MARKET BUZZ

1530 29032023 Athena Market Buzz Wednesday  Good Morning,  Mdex opened slightly higher but as the day progressed by lunch time we saw profit taking and June month settled 3672 -15 after making a days low at RM 3646 which at the time of writing this report is trading at RM 3714 +27. As mentioned before the CPO prices into India are very costly and it will be hard for palm to trade at current levels. Some indications on CPO were starting at 990 and ROL at 980 against this crude sunflower oil India traded last night at 1020 which today is offered around USD 1030 again. Palm has bounced off from our supports of RM 3450 and is trying to test resistance of RM 3750 again. We can expect palm to peak for short term around RM 4000 but will correct back to RM 3250 and this range could continue trading till end of Aug 2023. MDEX will become worth selling once it crosses RM 3750 mark , at this level one can exit longs again and to make short one should look at levels of RM 4000.  Cbot...

1310 27032023 Athena Market Buzz Monday  Good morning, As we analyze the trends of the market, it appears that palm oil has declined by approximately 10% last week, and this trend may continue throughout the current week. Despite this, prices between RM 3450-3550 may be utilized for short covering. However, those looking to make long investments will need to wait for prices to correct towards RM 3250. It is worth noting that inflation is a cause for concern globally, and it seems that interest rates will continue to rise in February, which will suck liquidity out of the system. Brent is currently holding steady around 75.00, and Ramadan demand is not expected to increase dramatically. Although destinations are presently filled with oil, overall consumption is decreasing. Conversely, Malaysia has reported higher export numbers, indicating that exports from Indonesia may be less, leading to an eventual build-up of stocks. By May, when this cargo comes to the market, we anticipate see...

Good Morning ,  Mdex opened lower mildly and by lunch June was trading at RM 3633 -31. Soft oils are too cheap for destinations like India and it appears that the correction is still not over which makes Palm super costly. For the first time we are seeing palm trading almost at par for near by months with sunflower oil and the spread between soybean oil to palm has also reduced to the lowest. India definitely will start consuming more soft oils and reduce the consumption of palm eventually increasing the stocks at origin. It appears that Palm is artificially held till 31st March and we can see good correction once Malaysian export number disappoint traders. MDEX will become buy only between MR 3450-3550 with a stop loss at RM 3250. We are getting offers for CPO at USD 965 for April, USD 945 for May against this sunflower oil in India is offered at USD 1000 and soybean oil can trade at 1065 making palm costly in comparison. Though most of the correction is already factored and with ...

1310 22032023 Athena Market Buzz wednesday Good Morning and a very Happy Gudi Padwa and Hindu new year to every one.  Mdex as expected opened lowed and was pushed to days low by lunch time. June settled RM 3644 -140 and we expect small short covering could result in a mild bounce however we maintain that the price to go long should be between RM 3450-3550 with a stop loss at RM 3250. Palm is very expensive at the moment and with CNF India prices of CPO April 980 and May 970 we will find it hard for people to trade. Sunflower oil and Rape seed oil Europe are very cheap in fact we heard some offers to India in the range of USD 1010 for May shipment reducing the spread between palm and sun to historic lows. Palm will also enter into high production months, with reduced exports, lack of demand from India and higher production in coming months palm will slip and this should being back healthy spread between softs and palm. ROL india is offered at USD 930 for may and it will become buyab...

1430 21032023 Athena Market Buzz Tuesday  Good Morning , Mdex opened 1.5% higher in the morning with May at 3907 +54 and June at 3836  +51 which was almost the days high and by lunch we settled May at RM 3896 +43 and June at RM 3826 +41. MDEX is trying to recover from losses and as mentioned before if it reaches RM 4000 again we can sell back the longs made to book some profits. During the day we saw the same reaction and at the time of writing this report May is trading at RM 3871 +18 and June is Rm 3799 +14. We expect the market to once again test the supports of RM 3750 for both the months. Palm is very costly at the moment with CPO CNF India offered at USD 985-975 compared to Sunflower oil which is still offered at USD 1060 and may trade even lower. If India does not consume more palm in summer months than come winters we will have higher end stocks and probably then we see lot of resistance in prices going up. We expect palm to be more competitive and drop towards RM 3450...