ATHENA MARKET BUZZ

1300 25052023 Athena Market Buzz Wednesday  Good Morning , Mdex opened firmer and by lunch we settled Aug at RM 3417+39 which is expected to remain mostly sideways due to lack of any bullish factors. Palm production in Malaysia is increasing (like 9% over April month) but the consumption is countries like India and china is decreasing this will eventually help build the stocks back up and increase pressure on prices. Indian market is totally lack lustre and if the production increase continues with no new factors we will not be surprised if MDEX breaks the RM 3150 levels and trade even lower. For the time being we expect that the USA debt ceiling will be increased and US will avoid the default but if that does not happen then we will see further pressure on over all Agri complex which will have a profound impact on Palm Prices too.  Palm mostly should remain in tight range and gradually drift towards RM 3150 mark where we should see funds making longs and shorts even exiting t...

1430 23052023 Athena Market Buzz Tuesday  Good Morning , Mdex opened unchanged to marginally higher with Aug at Rm 3440 +12 and by lunch it faced selling pressure only to settle Aug 3393 -35. Palm is finding its place again with soft oils moving up we see the spread again tilting in favour of palm. We repeat that Palm will find very strong support around RM 3150 mark and price below RM 3250 should be made long. At the time of writing this report we are trading Aug at Rm 3384 -44 and with Soft oils maintaining firmness we can expect it to remain here or settle mostly unchanged. Palm will very slowly drift lower and the spread between soybean oil and Palm could once again go around USD 150 where it will become healthy. Over all consumption of Palm is reducing and now Indonesia is also exporting oil increasing over all palm supplies.  CNF India the indicative offers  on CPO are USD 875 July and USD 850 for Aug which compared to Soft oil offers is USD 130 Cheaper. We would su...