Commodity Weekly Report February 24 2013
25/02/2013 (Borneo Post) - The US Dollar Index value strengthened last week after the Federal Open Market Committee minutes stated the old news of favouring stimulus termination sometime in 2013.
Upon the news release, European currencies fell heavily against the dollar while gold and WTI Crudes also began to recede in profit liquidation.
The US housing market showed momentum in recovery as housing starts and existing homes sales both increased by 0.8 per cent and 0.4 per cent respectively in January.
WTI Crude plunged middle last week below 95 supports and headed down to 92.44 lows on Friday.
The crude market faced profit-taking as the dollar increased in value.
This week, we reckon the market will be supported at 92 benchmarks and begin to rebound. Topside resistance lies at 95 regions.
Abandon your long-view if the market settles below 92 for possible further decline.
Gold prices made new five week low at 1,555 regions due to panic selling amid rising dollar.
The market is beginning to consolidate slowly while we foresee the trend could be supported at 1,550 levels this week.
If the trend stabilises upward, we foresee it may range from 1,550 to 1,600 in the coming two weeks while trying to search for bargain hunting.
However, abandon your long-view if the market breaks below 1,550 supports.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives traded in small range last week.
The May delivery contract closed at 2,532 on Friday.
This week, we reckon the market range will be trading from 2,470 to 2,660 ranges while the trend could be mild bullish.
However, beware if the market trend settles below 2,470 supports as it will go down back to 2,400 areas.
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.