As for FCPO, market eroded to a one week low yesterday, following sharply lower China Dalian futures. Easier CBT soyoil and weakness in crude mineral oil provided early pressure. Long liquidation and technical sell stops below 2250 added weight. Losses were held by the record high 1-30 June exports, although the numbers were within those rumoured yesterday. Prices gapped 20 to 46 lower in the morning and remained weak throughout the afternoon.
The sharp erosion pointed to bearish sentiment tied to seasonal weakness from the approaching peak production months in August - October. However, the short term fundamentals are supportive. The 1-30 June exports were of record high and will result in lower end June stocks, with production reportedly to be slightly lower vs May. Excessive rains in the US is also supportive while global production of rapeseed are forecast to be lower.
Technical view - Prices are still in a sideway range, but within the broad down trend channel. Trend sideways ; RSI 46.01 ; support 2220 / 2150 / 2120 ; resistance 2260 / 2300 / 2330 / 2360.
In other news..
Fitch has affirmed Malaysia's Long-term foreign currency Issuer Default Rating (IRD) at 'A-' and local currency IRD at 'A'. The outlook on the Long-term IRDs has been revised to Stable from Negative. Fiscal finances Supportive factors: reasonably strong GDP growth rates, low inflation volatility, GST and fuel subsidy reform. Ringgit trading at 3.7270 now.
📢 It's official. The IMF announces that Greece did not make a 1.5 billion euro payment to the Fund.
In a statement, the IMF said it did receive a request for an extension of the repayment -- and the IMF board says it will consider that request "in due course."
In a statement, the IMF said it did receive a request for an extension of the repayment -- and the IMF board says it will consider that request "in due course."
🇺🇸 U.S. stocks closed slightly higher, with the Dow and S&P 500 rebounding from their biggest losses of the year, as a last-minute diplomatic scramble got under way to keep Greece from defaulting on its debt payments.
🇺🇸 U.S. government bonds have had their biggest quarterly selloff since December 2013, hurt by an improving U.S. economic outlook and the Federal Reserve’s pending shift into higher interest rates.
€ European equities closed in the red on Tuesday as Greece remained firmly in the spotlight for investors. The markets will now look to see if the ECB withdraws support for Greek banks if Greece misses its $1.7 billion debt payment due to the IMF today.
* The Eurozone Jun CPI estimate rose +0.2% y/y, right on expectations.
* The Eurozone May unemployment rate remained unch at 11.1%, right on expectations and the lowest in 3-1/4 years.
💴 The yen rose to more than one-month highs against the euro and the dollar as new developments in Greece, including a looming loan payment, ramped up market uncertainty and drove investors into assets perceived as safe. Now, YEN/USD 122.49.
⛽ US oil settles up $1.14, or 2%, at $59.47 a barrel, posting a 25% quarterly gain, after Iran and six world powers extended the deadline for nuclear talks until July 7.
👑 Gold prices fell as the prospect that Greece would default on a repayment to the International Monetary Fund knocked the euro against the dollar, and as investors remained wary over the metal's longer-term prospects. Now, $1,172.70.
🌴 FCPO (RM2,229) closed lower after sharply lower China Dalian Futures. Long liquidation and technical sell stop below 2,250 added pressure. However, the 1-30 June exports were of record high and will result in lower end June stocks, with production reportedly to be slightly lower vs May. Prices are still in a sideways range but within the board down trend channel.
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