FCPO Commentary on 09/01/09

FCPO February futures contract plunge RM120 lower compare to previous trading session and close at RM1865 with a total 10563 lots traded in the market. CPO price plunge due crude oil and soybean oil closed weak during overnight trading session.

Technically, CPO price seem temporary supported above RM1860 region; 61.8% Fibonacci projection figures. We expect CPO price would rebound mild around 50% and 61.8% Fibonacci retracement figures at RM1960 and RM1980 region. However, traders were advice to hold short position provided RM2015 levels were not violated. Supports were seen around RM1783 and RM1720 region; 50% and 61.8% Fibonacci retracement figures.