FCPO Commentary on 17/07/09

FCPO 3rd month Oct Futures contract fall RM65 lower to close at RM2020 levels as compare to previous trading session with 9,215 lots traded in the market. New active Oct CPO futures contract plunge as crude oil and soybean oil plunge during electronic trading despite were traded firm on overnight closing.

Technically, CPO plunge after several attempts to breach resistance levels at RM2100 regions. Based on our technical analyst, our opinion suggests CPO would price would trade lower in the coming trading session provided next critical supports at RM1998 and RM1964 were violated during trading session. Traders were advice to hold short position once support levels were breach. Resistances levels were seen at RM2068 and RM2100 regions.