-fcpo lost RM140 for the week. For the week FCPO/SO/CO lost 4%. -bearish unless mkt regains 2550 first as the mkt is seen heading or 100/200 SMA before bears give up. A mid bounce in soyoil would be enough to fend off selling pressure, unless SO regains US$0.40. Plus FCPO is doing at a strong premium to soyoil , no thanks to a stronger ringgit.
-all it takes is a soft opening to reignite bears interest again.
Kan,
ReplyDeletehow to calculate the premium or discount between cpo and soybean oil ?
Since i not doing physical, i ignore charges like warehouse, shipping cost...I just trace the price difference between SO/FCPO in US$/tonne over a period of time.
ReplyDeleteFormula: SO price ( eg 38.81)/100/0.000454 = SO $/T (a)
FCPO(2470)/$RM(3.3456) rate = FCPO $/T(b)
b($740)-a($854) = fcpo discount of $114 per tonne
Within 2009's range of -250 to -76 , fcpo dis -124 is relatively expensive or "premium".