FCPO Commentary on 07/07/09

FCPO 3rd month Sept Futures contract traded fall RM46 lower to close at RM2129 levels as compare to previous trading session with 8,318 lots traded in the market. CPO price was traded sideways during the trading session despite soybean oil and crude oil electronic trading plunge during trading hours. Possible soybean oil and crude oil trading trying to catch up CPO last week pit fall.

Technically, CPO daily price chart closed Doji formation after long hours of rectangular consolidations. Based on our technical interpretation, CPO price seems rested well above RM2109 region. Our opinion suggests CPO might rebound in the coming trading session where resistance levels seen RM2180 and RM2209 regions. Traders were advice to apply sideways trading measure as we expect CPO would consolidate further until trend regains strength. Support levels were seen at RM2085 and RM 2030 levels.