Article on crude palm oil market, uses, production, basically a to z

This article will give insight into what is actually traded on the market in bursamalaysia. The price action recently is akin to a casino, where fundamentals have all but been thrown out the window, with only the muscle and money game forcing undercapitalised gamblers out of the market. Enjoh and enlighten yourself!

20080318 Crude Palm Oil futures today hit limit down for the morning session. So, what has happened to the supposed huge demand from India and China due to the inclement weather. It is just another story the manipulators use to trick traders.

This appeared in the Business Times website yesterday. The cpo players promptly thumbed their noses at the article and ppushed up the price to close RM4003 per tonne. Today we see the folly of the move with an opening price of RM3730.

Palm oil may fall 20pc in 3 months: Goldman

PALM oil futures in Malaysia, the global benchmark, may fall between 15 per cent and 20 per cent in the next
three months on lower demand and rising supplies, Goldman Sachs Group Inc said.
While we remain positive on long-term fundamentals, in the near-term we believed that current record crude
palm oil prices are unsustainable, Patrick Tiah, an analyst at Goldman Sachs in Singapore, said in a report
yesterday.
Palm oil for May delivery, which touched a record RM4,486 a tonne on Tuesday, fell 3.5 per cent, or RM145,
to RM3,954 at the mid-day break yesterday.
Palm oil is used in cooking and alternative fuels. - Bloomberg

20080305 This chart is worth posting. It shouw the 'irrational exuberance' and silliness of speculators to push prices to beyond economic reality. If you ever want to explain why the world is experiencing problems due to the subprime crash, you can use this analogy to make it clear to the layman on how overspeculation leads to ruin.