FCPO Commentary on 03/06/09

FCPO 3rd month August Futures contract fall RM27 to close at RM2598 levels as compare to previous trading session with 6,699 lots traded in the market. CPO price seems fails to sustain continues buying interest as soybean oil and crude oil electronic trading retrace after closed firm during overnight trading.

Technically, CPO price seems topped around resistance levels at RM2650 regions after tested for 3 times in the hourly chart. Our technical knowledge suggests that CPO price still riding on a bear market in the medium term where resistance still seen at RM2650 and RM2703 region despite of strong fundamental support on the strong demand. Traders were advice to hold short position in the coming trading session while be cautious around support levels at RM2560 and RM2500 regions.