Palm Oil Technicals from Reuters

SINGAPORE, Oct 18 (Reuters) - Malaysian palm oil may retrace further to 2,849 ringgit per tonne based on its wave pattern and a Fibonacci retracement analysis.

A five-wave cycle has completed on the rise from 2,653 ringgit to 2,970 ringgit, and a Fibonacci retracement analysis reveals a possible target for the current retracement at 2,489 - the 38.2 percent level.

Palm oil may also consolidate between 2,880 ringgit and 2,940 ringgit on Monday without rushing towards 2,849, as the wave "4" trough generally provides minor support which may hold up a fall temporarily.

Resistance is at 2,940 ringgit, a rise above which indicates a consolidation would take longer within a wider range between 2,880 ringgit to 2,970 ringgit.

Cotton Prices Hit Record Highs; Shortage Feared

Cotton prices soared to a nominal record high on Friday amid heavy buying in China, the world’s largest importer, and disappointing crops in major producing nations including Pakistan.

The rise in the price of cotton will reverberate through the textile industry, forcing clothing companies to either pass the increase onto the consumer or face lower margins. While the impact is likely to be muted on high-priced clothes, it could be more noticeable in cheaper items such as t-shirts and underwear.

Clothing companies including UK-based Next and jeans maker Levi Strauss & Co have already announced price hikes due to rising cotton costs.

UN urges world unity against hunger

On World Food Day, officials call for a growth in agriculture to help almost one billion people facing chronic hunger.

The UN Food and Agriculture Organisation (FAO) has called for "urgent and concerted actions" from world leaders and international organisations to help put an end to chronic hunger, which affects almost one billion people across the globe.

Jacques Diouf, the FAO Director-General, Pope Benedict XVI, and the president of Rwanda were among leading figures backing the call on World Food Day on Saturday.   

Canada to support Pakistan in agriculture sector

ISLAMABAD Oct 16 (APP):  The Canadian Government on Saturday announced further support in agriculture sector for those affected by the recent floods in Pakistan.Minister of International Cooperation Canada Beverley J. Oda, in a news release issued here said the contribution responds to agricultural recovery needs by providing seeds, fertilizers, and tools and by supporting the rehabilitation of the land and livestock sector in Pakistan.

Gates Agriculture Grants Focus on Seeds, Climate

DES MOINES, Iowa (Reuters) - Gates Foundation, which has donated $1.5 billion to agriculture in developing countries, is focusing more investments on seeds and technology to help small farmers adapt to climate change, the foundation's chief executive said on Thursday.

"Most of our grants support conventional breeding. But in certain instances we include biotechnology approaches because we believe they can help farmers confront drought, flooding, disease, or pests more effectively than conventional breeding alone," Jeff Raikes, chief executive of the foundation started by the billionaire founder of software giant Microsoft, said in a speech to the World Food Prize meeting.

Wheat Analysis from Reuters

   

SINGAPORE, Oct 15 (Reuters) - The CBOT wheat December contract <WZ0> may establish a trend soon, as the current consolidation is approaching an end.

A descending wedge may contract to a point above $6.88-1/2, the 61.8 percent Fibonacci retracement level on the rise from $6.57 to $7.39-3/4.

It is not strategically safe to assume a bullish move right now even if the bias is for a rise, as a resistance at $7.12 needs to be cleared to confirm the development of an uptrend.

   

Corn Technicals from Reuters

   

SINGAPORE, Oct 15 (Reuters) - CBOT December corn <CZ0> is technically neutral as it is trapped within a narrow range between $5.53 and $5.89 per bushel.

A rise above pivotal resistance at $5.89 could trigger a very explosive rally towards $6.20, as the current five-wave cycle will make up a bigger wave, and a new rally would be the stronger wave three.

A retracement from the current level could find strong support at $5.53, and will be limited to $5.37 should $5.53 fail to hold up the fall.