FCPO Commentary on 28/11/08

FCPO February futures contract close at RM1660 ; surge RM62 higher as compare to previous trading session with a total of 5860 lots traded in the market. CPO price was traded higher during trading session due to firm overnight Crude Oil closing above USD50/barrel.

Technically, CPO price was still seen riding on a short term bull rally and manage to breach short resistance levels at RM1655 region. We expect CPO price would be traded higher towards next resistance levels at RM1704 and RM1770 region provided support levels at RM1650 and RM1600 region were not violated. Traders were advice to hold long position once CPO price was standing firm above resistance levels. Provided critical resistance level at RM1723 was violate, we expecting CPO price would be trading towards at least RM1770 level in the coming trading session.

FKLI Commentary on 28/11/08

FKLI November futures contract close at 873.5; 4.5 point higher as compare to previous trading session with a total of 9527 lots traded in the market. FKLI was traded higher due to Dow Jones overnight firm closing and regional indices encouraging price movement.

Technically, FKLI was seen temporary support at 866 regions for short term trading and seems holding well above the resistance trend line at 860 regions. We expect FKL would be trading higher in the coming trading to complete wave 5 projected around 940 regions. Traders were advice to hold long position in the coming trading session provided support levels at 866 and 850 levels were not violated. Resistance levels were seen at 890.5 and 910 region.

Breaking News-RTRS-UPDATE 1-India will only tax crude palm if local prices dive

NEW DELHI, 26 Nov (Reuters) - India will only impose an import tax on crude palm oil if there is a further drop in local oilseed prices, the farm minister said on Wednesday, despite trade calls for a duty to protect farmers and domestic rates.
"The government will act if (oilseed) prices fall below government's minimum support prices," Sharad Pawar said.

Breaking News-RTRS-Indonesia keeps Dec palm oil export tax at zero

JAKARTA, Nov 26 (Reuters) - Indonesia is maintaining its zero percent palm oil export tax in December, while it has cut the December palm oil base export price to $415 a tonne from $573, the trade ministry said on Wednesday. The moves are effective from Dec. 1.