FCPO Commentary on 12/05/09

FCPO 3rd month July Futures contract close RM25 lower at RM2660 as compare to previous trading session with 11,741 lots traded in the market. CPO price was traded in a wide range during the trading session as soybean oil and crude oil were also traded wild.

Technically, CPO seems manage to breach 100 – days and 80 – days moving average in the 15minutes price chart after 4 consecutive tests on the moving average during previous trading session. We expect CPO price would trade lower in the coming trading session while supports were seen at RM2624 and RM2591. Traders were advice to hold short position in the coming trading session while resistance levels were seen at RM2710 and RM2755 regions.