FCPO Commentary on 25/03/09

FCPO 3rd month June Futures contract plunge RM50 lower to close at RM1980 as compare to previous trading session with 6517 lots traded in the market. CPO price falls after disappointment for soybean oil and crude oil overnight weak performance despite CPO price surge up in the previous trading sessions.

Technically, it appears the CPO price fails to breach resistance trend line of the rising wedge. We expect CPO price would trade within the rising wedge price range in the coming trading with resistances seen at RM2050 and RM2000 region. However, traders were advice to hold long position in the coming trading session provided support levels at RM1950 and RM1900 were not violated.