FCPO Commentary on 01/07/09

FCPO 3rd month Sept Futures contract fall RM32 lower to close at RM2230 levels as compare to previous trading session with 9,971 lots traded in the market. CPO price plunge despite crude oil and soybean oil overnight and electronic was traded firm.

Technically, CPO manage to rebound 61.8% Fibonacci retrace levels at RM2294 regions in the early trading and starts to plunge after manage to breach previous support levels at RM2270 regions. Our technical analyst suggest that CPO would trade lower in the coming trading session provided resistance levels at RM2250 and RM2275 must not be violated during trading session. Traders were advice to hold short position in the coming trading session while be cautious around support levels at RM2209 and RM2093 regions.