UPOIC : Outlook for Feb 21st
February 20, 2011 Leave a comment
Whatever next, first it was the ‘egg police’ and “kai by the kilo”, and now the authorities seem to have taken on the role as palm oil police too. Whatever happened to the free market ? …surely it would not be too difficult for private companies to take a flight to Medan or Jakarta and buy some crude palm oil from the Indonesians, and sell it at fair rates in Thailand. Why not buy crude palm futures….they are openly tradable in Malaysian and Indonesia, and it would not take a rocket scientist to work out a trading hedge too!
Alas it’s left to the State to control sales of the oil instead of the market mechanisms that seem to work just fine elsewhere.
Maybe this is the reason UPOIC is trading near multi month lows at 7.25, with last ditch support at 7.10 – the YTD low.
Never wise to double guess the local authorities given their penchant for odd moves, so let this one fall….or breakout above 7.30 or so on higher flows before paying much attention.