FCPO Commentary on 16/01/09

FCPO March futures contract plunge RM78 point lower to close at RM1806 with a total 5098 lots traded in the market. CPO price was traded lower due to crude oil and soybean oil overnight and electronic trading were traded weak.

Technically, CPO price seems temporary supported around RM1800 levels. We expect CPO price would trade higher in the coming trading session provided support levels RM1800 and RM1730 were not violated. Traders were advice to hold long position in the coming trading session while be cautious around resistance levels at RM1890 and RM1930 levels.