ATHENA MARKET BUZZ

  1430 08072024 ATHENAMARKETBUZZ MONDAY HBDAARI Palm Oil Market : The palm oil market is very slow today in India as MDEX is closed and traders are not getting any direction. Such days are important as most of the consolidation happens during a holiday, followed by short covering on the opening day. Our view remains unchanged: as the market progresses towards RM 4150 and above, we advise our traders to start making small shorts, increasing them once we test RM 4450, while buying during corrections towards RM 3750. Production is decreasing, India is entering the festive season, and demand for edible vegetable oil is increasing, which will provide enough support. Bearish traders are looking at crude oil prices, hoping that softer crude could put pressure on vegetable oil, but we expect crude to remain stable and slowly inch higher towards 100 by the end of this year when the requirement for heating oil increases. In India, offers are mostly unchanged from Friday, and there are n...

1600 04072024 ATHENAMARKETBUZZ THURSDAY Palm Oil Market : The CNF India price for CPO has reached USD 1000 PMT for spot months, with forward prices not far behind at USD 980 on the offer side. Technical levels for palm oil have seen a break above USD 4000, maintaining the rally above RM 4000 but not yet enough to push it over RM 4250 immediately. Indians find it difficult to pay USD 1000 at the moment, but with the recent rally in soybean oil—where August shipment degum is trading over USD 1020—we may see this happen soon. RSI on palm oil is over the 50% mark, and bullish sentiments will likely keep prices supported above RM 4000. However, a rally beyond RM 4250 towards RM 4450 is expected to face strong resistance from commercial players and will likely result in selling. We suggest our traders be prepared to sell the market once prices cross RM 4250 and cover shorts when prices trade between RM 3750-4000. For absolute longs, wait for prices to trade below RM 3750-3650, although it m...