FCPO Commentary on 14/05/09

FCPO 3rd month July Futures contract surge RM64 higher to close at RM2789 as compare to previous trading session with 11,511 lots traded in the market. CPO price was traded higher during trading session due to strong soybean oil and crude oil electronic trading.

Technically, CPO price seems manage to breach sideways trading range at RM2730 to RM2650 region and tested previous high levels at RM2798 regions. We expect CPO price would trade higher in the coming trading session provided it breaks resistance levels at RM2798 and RM2830 regions. However, we expect CPO price might trade on the high side as bull rally have been continue for more than 2 months. Traders were advice to hold long cautiously while be extra cautious around support levels at RM2740 and RM2650 regions.