FCPO Commentary on 30/09/09

CPO 3rd month Dec futures contract traded marginally RM2 higher as compare to previous trading sessions to close at RM2105 with a total of 10,516 lots traded in the market. CPO price were sideways due to soybean oil and crude oil electronic trading were traded opposing each other’s direction which directly affect CPO trading directions.

Technically, CPO price were traded sideways throughout entire trading session while support levels at RM2080 region was being tested several times. Based on our technical view, our opinion suggests CPO price would likely to trade higher in the coming trading sessions provided support levels at RM2070 and RM2083 were not violated during trading sessions. Traders were advice to hold long position in the coming trading session while be alert around resistance levels at RM2130 and RM2188 regions.