Palm oil prices closed higher at 5628 after hit historical high at 5639.
Factors continue to affect palm oil prices:
1. Indonesia finalize their export restriction plan which set 20% local supply rule for palm oil exporters effective from last Thursday (27 Jan 2022). Government also implement price cap on local sales of CPO and palm olein, effective from 1st Feb 2022.
2. Soybean oil stayed firm on Ukraine Crisis amid fears of potential supply disruption due to military action from Russia to Ukraine.
3. Traders selling in far months and shipments from India and China dropped likely to limit the upside of the market.
Technical View:
1. Market remained bullish.
2. Stochastic reached overbought level
We expect market may face some profit taking activities due to shortened week and thin trading volume.
Suggestion Trade:
Long if stay above 5625
Target Stop Loss (support level) 5400
Target Profit (resistance level)
TP1 5725 TP2 5825
Factors continue to affect palm oil prices:
1. Indonesia finalize their export restriction plan which set 20% local supply rule for palm oil exporters effective from last Thursday (27 Jan 2022). Government also implement price cap on local sales of CPO and palm olein, effective from 1st Feb 2022.
2. Soybean oil stayed firm on Ukraine Crisis amid fears of potential supply disruption due to military action from Russia to Ukraine.
3. Traders selling in far months and shipments from India and China dropped likely to limit the upside of the market.
Technical View:
1. Market remained bullish.
2. Stochastic reached overbought level
We expect market may face some profit taking activities due to shortened week and thin trading volume.
Suggestion Trade:
Long if stay above 5625
Target Stop Loss (support level) 5400
Target Profit (resistance level)
TP1 5725 TP2 5825