FCPO Daily 7/7/2009

8.30 : Weak external factors continues. SO and CO are trading 15 and 2% lower. FCPO Sep09 is seen stuck at the lower ranges again, within 2100-2150, a danger of a fresh breakdown looming.


Resistance- Support
2200-2150
2230-2120
2250-2100
2275-2070

last week.....FCPO revisited 2100 for the first time since xxx as prices retest major support level in a week that saw a weaker commodity market as players took a cautious stance on global economy recovery story. For the week, FCPO//CO/SO lost 6%/6%/4% respectively.

Market remains technically negative-bias and possibly shifting lower to a new trading range of 2000-2100 this week. FCPO Sep09 strong bounce from 2100 lows on Friday was nothing more than a weekend short covering as losses were deemed excessive. Unless external factors improve, FCPO will continue to trap inside a downtrend channel. Another breach of 2100 would bring about a new leg down towards 2000. The best case for bulls this week is to see the market consolidates within the horizontal support lines. Sentiment will turn neutral if Sep09 recovers back above 2200.

FCPO Daily Commentary 062509

8.30AM: Soy oil futures finished lower Wednesday, spiilover weakness from crude oil futures. The absence of fresh fundamental news promoted a consolidative theme, with traders taking a cautious approach ahead of the delivery period for July futures and key June 30th government acreage report.
Sep09 contract may open within 2235-2255 levels, today.



FCPO closed 2250, down 36 pts Wednesday. Market traded lower and in a tight range-bound, in line with lower soy oil during Asian hours.
Palm oil market ended with little activities. The absence of fresh fundamental developments kept most participants on the sidelines. FCPO remains a ‘sell on rally’. The immediate resistance is 7-SMA@ 2293. The stronger resistance lies at 2350 level

FCPO Daily Commentary 061209

8.25AM: With the soy oil (-1.8%) closed lower, FCPO may continue to drift lower to test the support level of 2441. Any follow through selling is likely to see 2400 level coming into focus. FCPO Aug09 may open within 2441-2450 levels, today.



FCPO closed at 2485, down 16 pts. Palm oil managed to hold on to its levels on fear that a possible return of El Nino weather pattern may disrupt seasonally higher production in the second half.



Palm oil still managed to maintain its composure. A higher crude oil prices also contributed as a supportive factor. The day’s high of 2519 would be the immediate resistance level. The next crucial resistance lies at 2550 level.