FCPO Commentary on 12/03/09

FCPO 3rd month May Futures contract retrace mildly RM15 lower to close at RM1980 as compare to previous trading session with 7427 lots traded in the market. It was a wild trading session for CPO price trading as market try to react on favorable monthly MPOB report while crude oil and soybean oil electronic was less encouraging.

Technically, CPO price starts to retrace after manage to complete 178.6% Fibonacci projection figure at RM2023 region. We expect CPO price would further retrace towards support levels at RM1950 and RM1930 before making effort to search for new high in the coming trading session. Traders were advice to hold long position in the coming trading session while be cautious around resistance levels at RM2000 and RM2026 regions.