Monday, 27 October 2014

Palm Oil Stock Usage Ratio

This is a long term fundamental issue that need to be looked into even though you may be just a technical trend trader. It is believed that the ratio will be hard to be manipulated since the ratio is basically used for long term monthly projection on palm oil supply and demand.

Over the 12-month period export data which collected over period of one year, do you think it can be manipulated still? then, take on the monthly end month stock and check on the past 3 months which is believed to be more accurate in the average. Having all that data, you can roughly get the feel why sometime the cpo futures prices is moving faster and volatile! They are stock over export figures but they can also be considered as the stock usage ratio judging on the small different in percentage! Do more on local disappearance figures if you want.

Do your data collection and you will learn what is the stock usage ratio in helping you feel on the trends of cpo futures. For now, the figures is bearish looking at low export figures and high stock!