26/2/07 (The Star) - Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives recovered from their pre-Chinese New Year lows boosted by light technical buying.

Improved palm oil exports, surging crude oil prices and strong advances in the US soyoil futures prices aided sentiment.

Societe Generale de Surveillance estimated exports of Malaysia's palm oil for the first 21 days of February at 635,215 tonnes, up 5.1% from the equivalent period a month ago.

 
May CPO futures prices rose from an intra-week low of RM1,920 to RM1,953 and ended the week slightly higher at RM1,951, up RM10 a tonne from a week earlier.

Volume for the week fell to 25,202 from 32,502 contracts the week before.

The weekly candlestick closed neutral to slightly positive and indicated the market was attempting to vault the three-week resistance levels.

Chart support for this week is adjusted slightly higher to the RM1,940–RM1,930 levels. The overall trend would turn slightly negative if prices dipped below these levels. Resistance for the immediate term is seen higher at RM1,960–RM1,975.

The weekly oscillators ended on a slightly positive note and suggested the market would remain in range trading. The weekly stochastic retained its buy signal at Friday’s close and showed the upward cycle could continue.

The 3- and 7-week ESA-lines settled in positive divergence and signalled the upward leg was intact. The 9-week RSI edged higher to 69.95 and signalled the immediate underlying strength of the market was positive.

SOYOIL 

Soybean oil futures prices on the Chicago Board of Trade closed Thursday higher after soybean advanced to contract highs on technical buying fuelled by a record price for corn.

Soybean futures set a 2½-year high and the continued technical strength attracted fresh speculative capital. Traders remained bullish as they focused on the acres and yield prospects for soybeans not only in the United States but also around the world.

Most traders are expecting a huge shift from soybean acreage to corn this year in the United States as farmers try to meet the demand for corn to satisfy the expanding ethanol industry.