FCPO Commentary on 14/07/09

FCPO 3rd month Sept Futures contract fall RM20 lower to close at RM1990 levels as compare to previous trading session with 7,427 lots traded in the market. CPO were trade within wide range as soybean oil and crude oil electronic trading recovered after dropped in the morning trading session.

Technically, CPO price seems complete rebound levels at 2000; 50% Fibonacci rebound after manage to reach 123.6% Fibonacci projection levels at RM1960 regions. Based on our technical knowledge, we expect CPO price would continue to trade lower in the coming trading session with support seen at RM1950 and RM1930 regions. Traders were advice to hold short position provided resistance levels at RM2000 and RM2035 were not violated in the coming trading session.