FCPO Commentary on 02/03/09

FCPO May futures contract traded marginally RM5 higher compare to previous trading session and close at RM1895 with a total 7230 lots traded in the market. CPO price was mainly traded higher during trading session due to soybean oil and crude oil overnight firm closing figures.
Technically, CPO price manage to test the support levels at RM1880 regions; 100 – day and 80 – day moving average after manage to surge up to RM1930 region during previous trading session. We expect CPO price would trade higher in the coming trading session provided support levels at RM1880 – RM1860 regions were not violated. Traders were advice to hold long position in the coming trading session while be cautious around resistance levels at RM1940 and RM1970.