Commodity Weekly Report March 3 2013
04/03/2013 (Borneo Post) - The US dollar strengthened last week on better outlook of economic data. Housing and manufacturing both improved while jobless claims were reduced to 334,000 in the week ended February 23.
Europe suffered slowdown when the European Central Bank announced higher unemployment covering 17 nations at increasing 201,000 to 18,998 million in January.
UK consumer confidence, housing recovery and loan approvals contracted in January and portrays looming outlook.
Gold prices rose and then plunged last week from 1,620 to 1,764 regions. The market settled at 1,575 levels for the weekend in weak outlook. This week, we reckon the market will be capped at 1,600 resistances and might drive down to re-test 1,560 again if dollar spikes higher.
However, beware of swings as the market is getting tough nowadays due to many verbal remarks from policymakers and unexpected dollar fluctuation within intra-day session.
WTI Crude poised to balance at 92.50 levels but closed lower at 91 on Friday. In our opinion, the market might find support interest at 89.50 areas this week but resistance will continue to build up at 92.50 regions.
The initial retracement in early week could pull up to 92.00 to 92.50 areas for good shorting opportunity. Control your risk management in case the market rises above 92.50 resistances for a reversal up trend.
Crude Palm Oil Futures on Bursa Derivatives closes lower on weekly basis due to short of demands. The market follows weak trend of WTI Crude Oil and Soybean Oil that have been receding due to higher dollar strength.
The April contract closed at 2,367 with approximately 35,000 contracts on Friday. This week, we foresee the market drive lower and re-test 2,320 supports but beware the market might pull up to 2,420 before dropping.
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