The open interest for December 2009 contract hit 34,625 contracts indicates that a very strong accumulation for CPO contract. The movement for coming weeks will be volatile when all this contracts going to close-off. Therefore, there will be a big swing in CPO price if certain news is announced. Belows are the possibilities that may happen:
1. Sales of Sime Darby10% equity to China government-CPO price to move up to 2,300 /2,400
2. Inventory level increase substantially and demand for CPO drop drastically- CPO price drop below 2,000 level.
3. Demand for CPO increase and Sept inventory level below 1.41 million tonnes- CPO price move up to 2,200/2,250 level.
Cautious trading for CPO. Good luck!
No comments:
Post a Comment