Athena Tradewinds | Daily Report on Sunflower & Soybean Oil

Mdex opened about 50 points lower and drifted further down by lunch with Sept at RM 3805 -108 and October at RM 3837 -98. Sentiments around edible oils is weak and this is what is pushing the markets lower. At the time of writing this report we are down further on Oct at RM 3743 -192 or 4.88% and the possibility of it coming back up over RM 3750 looks possible but for how long will be the question as to how currencies behave. Most of the players are seeing the worse and I must tap my hat to an analyst who called for MDEX to go below RM 4000 when it was actually trading at RM 7000 , We didn’t believe in such a sharp correction in such a short time but it happened and we were wrong. Again they are talking about RM 2500 if Ukraine war gets over and we again think its possible but not that soon. We will repeat that the market should find significant supports between RM 3250-3500 level and a trader can actually make longs around that level. We will repeat that levels over RM 4000 should be used to sell longs and over RM 4250-4450 should be used to make shorts. Mdex on this Monday 18th of July was up 200 points but October at lunch was trading at RM 3837 which at todays (21 July ) lunch was also at RM 3837 making the week very volatile but yet mostly unchanged. We have seen good buying in palm once the levels go below RM 3750-3500 and we should see the repeat of same. CPO offers to India Aug 1010 and Sept 1015 against local market no sellers in CPO.