Palm Oil Rises On Soyoil, China

*July 16, 2012 11:12 UTC+8

BMD Crude Palm Oil (CPO) Rises On Soyoil, China; MYR3,180 Resistance

*July 16 2012 12:45:00 PM

Crude Palm Oil Price: RM3129 ▲64 ▲2.09%, US $985

(Source: PalmOilHQ.com)

The ST outlook remains bullish.

10 July 2012 (Extracted from Macquarie Singapore Daily Newsletter) Singapore

The Straits Times index declined by 1.66% on Monday. After the closing bell, 90% of the index constituents were above their 20D MA (vs 97% last Friday), and 87% of the shares were above their 50D MA (vs 93%). From a chartist standpoint, the index corrected on the downside yesterday, as the RSI (14) is reversing down from its "overbought" area at 70%. Nevertheless, the ST bias is still bullish, as the index remains well supported by its rising 20-day simple moving average, which has just crossed above the 50-day one (a bullish signal). To sum up, as long as the key support at 2845 holds on the downside, expect a limited consolidation before a new bounce to 3030 and 3110 in extension.

OCBC raises Golden Agri target price

04-07-2012 09:25:25 (UOB-KH Online News)
STOCKS NEWS SINGAPORE-OCBC raises Golden Agri target price

OCBC Investment Research raised its target price for palm oil firm Golden Agri-Resources Ltd to S$0.81 from S$0.74 and kept its 'buy' rating, citing a possible recovery in crude palm oil (CPO) prices.

By 0114 GMT, Golden Agri shares were flat at S$0.72, and have gained 0.7 percent since the start of the year, underperforming the benchmark Straits Times Index's 12 percent rise.

Golden Agri, the second largest palm oil plantation owner in the world, stands to benefit from a rebound in CPO prices, OCBC said.

"We believe that a recovery of CPO prices is likely, given the concerns over the impact of a prolonged drought in the U.S. mid-west, affecting the potential supply of soybean crop," OCBC said in a report.

Soybean and CPO prices have a strong correlation of 0.85, indicating that CPO prices will likely mirror a rise in soybean prices, it added.

0916 (0116 GMT) (Reporting by thomsonreuters.com)