FCPO Commentary on 13/05/09

FCPO 3rd month July Futures contract rebound RM65 higher to close at RM2725 as compare to previous trading session with 8,374 lots traded in the market. CPO price was traded higher due to strong soybean oil and crude oil electronic trading despite were settled lower on overnight trade.

Technically, CPO seems support above 100 – day and 80 – day exponential moving average in the 15minutes price chart and traded within the RM2730 and RM2680 range. We expect CPO price would trade lower in the coming trading session provided resistance levels at RM2730 and RM2755 were not violated. Traders were advice to hold short position in the coming trading session while be cautious around support levels at RM2700 and RM2655 regions.