As for FCPO, market eroded further with prices returning to fill the gap left on 29 May. Selling was tied to continuing bearish sentiment on ideas of increasing production and stocks in coming months. The very good 1-20 June exports were discounted as already expected. Market was higher early following gains in CBT soyoil. Trading was slow throughout due in part to holiday in China.
Prices were 8 higher to 8 lower in the morning and dropped to 19 lower in the afternoon. Unless there are weather concerns, market is likely to come under pressure from increasing production in coming months. There is little sign of El Nino at present and Indian monsoon looks good. Some excessive rains were affecting the US soybean crop but seems to be of no major concern. However, good demand especially for festive Ramadan may limit the downside.
Technical view - indicators remain negative with prices eroding to new lows. Prices likely to test 2200. Ringgit ~ 3.7300 / 3.7340 vs USD. Trend down ; RSI 44.76 ; stochastic oversold ; support 2200 / 2150 / 2120 / 2070 ; resistance 2280 / 2330 / 2360 / 2400. Interested to trade futures? PM me or visit http://jaceonmarkets.blogspot.com
In other news...
European policy makers said Monday the eurozone is working toward a deal later this week to provide bailout aid for Greece. The policy makers appeared to offer hope that an agreement is still reachable after a monthslong deadlock that has spurred talk of a potential Greek exit from the eurozone.
📝 Greece’s creditors suggested for the first time that a deal to avert the country’s bankruptcy was in sight after an 11th-hour proposal submitted by Athens made a significant concession on pension cuts.
🇺🇸 U.S. stocks advanced, propelling the Nasdaq Composite to a record close, lifted by gains in health-care and financial shares as well as optimism that Greece will eventually reach a bailout deal with its creditors.
€ European stocks were up at a 1-week high on optimism a deal to unlock bailout funds for Greece can be reached. Greek Prime Minister Tsipras unveiled a new plan to break the month-long impasses in debt talks and European Economic Affairs Commissioner Moscovici said the plan goes "in the right direction."
📝 Greece’s creditors suggested for the first time that a deal to avert the country’s bankruptcy was in sight after an 11th-hour proposal submitted by Athens made a significant concession on pension cuts.
🇺🇸 U.S. stocks advanced, propelling the Nasdaq Composite to a record close, lifted by gains in health-care and financial shares as well as optimism that Greece will eventually reach a bailout deal with its creditors.
€ European stocks were up at a 1-week high on optimism a deal to unlock bailout funds for Greece can be reached. Greek Prime Minister Tsipras unveiled a new plan to break the month-long impasses in debt talks and European Economic Affairs Commissioner Moscovici said the plan goes "in the right direction."
📝 Greek bank stocks also surged after the ECB today raised the ceiling of maximum potential Emergency Liquidity Assistance (ELA) available to Greek banks for the third time in less than a week.
📝 Asian stocks moved higher on optimism a resolution can be reached to the Greek debt crisis as Japan's Nikkei Stock Index closed up +1.26% at a 1-week high.
⛽ Crude oil futures swung higher after falling on concerns that U.S. demand for gasoline may fade after a strong stretch and in worries about the potential fallout from the Greek debt crisis.
* U.S. crude $59.68 (+0.07)
* Brent crude $64.23 (+0.46)
* U.S. crude $59.68 (+0.07)
* Brent crude $64.23 (+0.46)
👑 Gold fell more than 1% on Monday as global equities jumped on possible signs of progress in Greek debt talks, which curbed safe-haven demand for the metal.
🌴 FCPO (RM2,220) closed lower and filled the gap left on 29 May. Selling was tie to continue bearish sentiment on ideas of increasing production and stocks in the coming months. Unless there are weather concerns, market is likely to come under pressure.
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