Palm Oil & Plantations Index

The plantations index is again rising and may continue to do so in the near future BUT it may need to take a short breather first.

Palm oil prices have risen to a 2-year high & Oil World is predicting higher prices. I quote from their site:
"Jun 30: Growing Risk of Global Production Deficits in 2006/07 and Weather Concern Is Likely to Lead to Higher Prices. Current stocks of oilseeds and oils at record level. But increasing risk of an excess of world demand over production in 2006/07, necessitating a reduction in stocks. Three years of unprecedented demand growth will finally create a situation in 2006/07 in which world consumption of 17 oils & fats and of 10 oilseeds will exceed production. In the medium term we expect higher prices for oilseeds and products. Most likely vegetable oils will be the price leader upward (i.e. palm oil being the biggest of the vegetable oils).
See http://www.oilworld.biz/app.php

So we will likely see higher palm oil prices this year which will be good for the plantation counters.

The index itself has reached a high last seen in 1994 which is now a strong resistance A-B). This may hold it back for a while & we will likely see a correction. The Inverted Head & Shoulder pattern has been confirmed with a breach at the 3333 level on high volume. For H&S a pullback is normal before continuing. Measurement target is 3639.