- Market closed higher after climbing to a 4-week high. Buying was tied to positive sentiments toward seasonal strength from lower production in Jan to Mar. Steadiness in China Dalian futures and CBT soyoil was supportive. Technical buy stops above 2050 magnified gains. Forward position from May 2019 was however slightly lower. Prices were 9 lower to 30 higher in the morning and rose to 35 higher in the afternoon before closing around mid range.
- Market is showing more positive sentiment. There is better inclination for support with expectations of production coming down in the coming months. The big discount of palm oil to soyoil and other vegetable oils is also supportive. However the high stocks remain a concern which kept nearby at big discount.
- Technical view - The break above 2050 is positive. Prices may move to 2150.
Disclaimer: This only for education purpose. Not a buy call or sell call from us.
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