Mdex as expected found good resistance… | Report
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By Athena Tradewinds.
Athena Tradewinds is an Indian company specializing in the sale of Sunflower oil, Sunflower meal, and Soybean oil. Athena Trade Winds is one of the top 10 importers in India of these commodities.
Mdex as expected found good resistance at 4250 for Sept month and even yesterday after making a high of Rm 4280 settled much lower. We expect markets to find support at RM 3750 but with the news of Indonesia reducing export levy we may look for some more pressure. We still maintain that shorts can look to cover the position now and current levels are not good to go short. Price below RM 3750 till RM 3500 will be a good buy and in fact one can again think of making longs. Across globe most of the currencies are getting depreciated and INR is no different. RBI proposing INR settlement could give some strength to rupee but we will have to wait for clarity and for the time beings we would suggest importers to keep their position hedged. CNF India the offers for CPO Aug USD 1085, Sept 1090 and we will see some more spread getting reduced. Months like OND should trade at par or at an inverse to spot hence we don’t suggest buyers to make longs for forwards.
US cuts crushing for both the marketing year by almost 10 mbu and also reduced exports which takes care of production loss. Markets reacted negatively to the old crop lower crush numbers and CBOT settled aug 60.11 -361, and Sept 58.87 -349 which today is marginally higher Aug 60.21 +10 and Sept 58.91 +4. As mentioned before CBOT sept found the resistance at 62.50 and we expect 57.50 to remain intact on the down side however our long term support stands at 54.50 . CNF India the offers on bean oil for Aug 1405, Sept 1390 against this locally in India some trades were heard at INR 1140-1150 levels. Though the spread between Aug and Sept is same on CBOT we have seen basis for forward months correcting more. With economic issues across Europe and US we will not see funds rushing to cover the commodities and we should trade in lower range for at least next 1-2 months. Bottom flat price supports 1350 and on the top side 1475 will find resistance.
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