FCPO Commentary on 08/07/09

FCPO 3rd month Sept Futures contract traded fall RM60 lower to close at RM2069 levels as compare to previous trading session with 10,797 lots traded in the market. CPO price was traded lower as soybean oil and crude oil was traded weak during overnight and electronic trading.

Technically, CPO seem manage to breach pervious support at RM2100 and RM2075 levels. Based on our technical studies, our opinion suggests CPO would consolidate with immediate support seen at RM2050 and RM1930 levels. Traders were advice to trade CPO cautiously as we expect CPO enter bottoming zone while possible of trend reversal signal in the future. Immediate resistance levels were seen at RM2100 and RM2209 regions.