Benchmark CPO contract price for March delivery on Bursa Malaysia Derivatives Exchange closed yesterday up RM74 at all time high at RM3,113 per tonne despite India latest move to restricts imports of refined palm oil
What many Investors still find it tough to understand. But it is actually quite simple & straightforward.
When India restricts imports of refined palm oil, it just means that India has to import more CPO to be refined in local refineries in India. This is good for our CPO exports!
That's right. That is what many people are still confused about.
They read news that India has restricted imports of refined palm oil. And they just go, 'Alamak, habis la, minyak sawit Malaysia dah kena block, x boleh masuk India lagi.'
Which is simply completely wrong.
'refined palm oil' is what you get from REFINING crude palm oil (CPO).
So, you still need to buy crude palm oil (CPO) from abroad (e.g. Malaysia), even if you want to perform the REFINING process in your own country (India) in order to defend your country's REFINERY industry.
We just need to "be patient" and let the operators do their job/process first - shake out some weak and very short-term speculators before stock price resume its uptrend course...
I expect a very good returns from TDM ("high probability win" in view of the strong FCPO uptrend). All the best !!!
Note: TERENGGANU INCORPORATED SDN BHD the largest shareholders of TDM disposed a total of 5.9 million shares in January 2020 !!!
Q: Why ??? A: Well, there are many possibilities. But no need to speculate. Just beware that TERENGGANU INCORPORATED SDN BHD still holding 1,028,832,953 shares in TDM as at 8 Janaury 2020 (Direct interest = 61.14%). 5.9 million shares were merely about 0.57% of their total shareholdings of over one billion shares.
Still worry? A: Don't be scared every time we see a major shareholder/director sold some shares - be careful not to misinterpret and be mislead by their action. There may be a GOOD reasons for them to do so and it could be a good thing for investors, maybe not good for short-term speculators.
From TA perspective, TDM already made a healthy correction/retracement since 3rd January and briefly touches 61.8% Fibonacci level (excellent Retracement depth). Currently it is sitting on its Support line, ready for rebound to higher level.
CPO futures to trend higher next week TheStar Sat, Jan 11, 2020 11:46am - 26 minutes ago
KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trend higher next week on better demand following last-minute buying from the Chinese market ahead of Chinese New Year.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said exports to the country will drive higher supply in the near term.
"China needs to buy the crop at least next week because it usually takes 10 to 12 days for the commodity to arrive in the country before Chinese New Year on Jan 25, ” he told Bernama.
Furthermore, Sathia said the market sentiment was also supported by the finalisation of the phase one trade deal between the US and China expected to be signed soon.
"Supportive external event of US-China trade deal next week will give a positive momentum to CPO prices, ” he said.
For the week just ended, the market was mixed on weaker production as well as the reinstatement of the CPO export tax on Jan 1 and restriction on imports of refined palm oil and palm olein by India.
On a Friday-to-Friday basis, the CPO futures contract for January 2020 rose RM21 to RM3,131 per tonne, February 2020 expanded RM19 to RM3,145, March 2020 increased RM18 to RM3,134 and April 2020 added RM12 to RM3,110 per tonne.
Weekly turnover increased to 288,983 lots from 164,912 lots in the previous week, while open interest rose to 279,059 contracts versus 267,359 contracts.
On the physical market, the CPO price for January South gained RM20 to RM3,140 per tonne. - Bernama
Bulldog, much safer & wiser to just hold tight, than to try swing out & back in this kind of CPO bull time.
You might be thinking, 'Oh, I can sell out at 38, then I buy back in at 36, should be easy to achieve'.
But what happens in reality could be vastly differrent. You sell out at 38, and then price runs to 41, then you can only get back in fast at 41 , then you dither & hesitate, and you end up getting back in only at 43. So you have actually lost 5 sen off the upride.
And becos you now buy back in at 43, you now have less number of lots compared to previously.
You should check in on some of those fields below.
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Posted by ProsperousRealm > 2020-01-10 14:23 | Report Abuse
Benchmark CPO contract price for March delivery on Bursa Malaysia Derivatives Exchange closed yesterday up RM74 at RM3,113 per tonne.