FCPO Commentary on 05/03/09

FCPO 3rd month May Futures contract surge RM47 higher to close at RM1902 as compare to previous trading session with 9654 lots traded in the market. CPO price surge up during 2nd trading session due to crude oil and soybean oil electronic trading.

Technically, CPO price break up from a flag formation in the 15 minute price chart after holding well above RM1855; 61.8% Fibonacci retrace figure during the morning session. We expect CPO price would trade higher in the coming trading session with support levels seen at RM1880 and RM1865 region. Traders were advice to hold long position in the coming trading session while be cautious around resistance levels at RM1910 and RM1945 region.