Commodity prices have been going up and cause inflation remain at high level . However, market eventually will adjust by itself and find a balance point to settle at the fair price for the commodity. With the surprise action taken by China government to increase the benchmark rate, it clearly show that the government do not wish to to see the people facing problem in buying expensive food items during the festive season.
Therefore, commodity market may going through a correction and this may give some impetus for profit taking activity before the end of 2010 and provide opportunity to buy on dip.
Ideas: The average selling price for CPO 4Q2010 = RM3200 ( an increase of 24% compared to 3Q2010). Therefor, ready to buy plantation counter when opportunity emerge and hope to see plantation company to report better financial result due to release on early of February.
Counter : Golden Agri, First Resource, ( Singapore ), IOI, TWSPLANT, KFIMA and etc ( Malaysia)
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