As for FCPO, market eroded further to new lows since 29 May. Selling was tied to bearish sentiment towards the seasonally weak period of high production months in August - October. Lower CBT soyoil and China Dalian futures together with weakness in crude mineral oil undermined sentiment. There was also no reports of serious adverse weather. Technical selling as prices broke below 2220 magnified losses. Bloomberg's poll on June data was discounted as within expectations. Prices were 12 higher to 7 lower in the morning and eroded to 30 lower in the afternoon.
In the absence of bullish factors, seasonal weakness is likely to dominate. Inspite of forecast for El Nino weather and reports of dryness in some countries, there is no impact on palm oil production yet. Meanwhile, weather is reportedly improving for the US soyabean crop which is negative. However, the short term fundamentals are supportive with lower stocks and the prospect of lower July production due to the coming Hari Raya holidays.
Technical view - the break below 2220 turned indicators negative. Prices may drop to 2130. Trend down ; RSI 42.50 ; 5-day MA has diverged downwards from the 20-day MA ; support 2150 / 2120 / 2080 ; resistance 2250 / 2285 / 2300.
In other news...
U.S. crude closed down slightly as investors fled to safe havens on worries about a near-bankrupt Greece and China's stock market losses and as technical selling threatened to push oil into a bear market. Iran's determination to seal a nuclear deal with global powers to bring more of its crude to an oversupplied market and the restart of a key oil terminal in Libya also weighed on oil prices.
* Crude oil $52.33 (-0.20)
* Brent Crude $57.00 (+0.43)
* Crude oil $52.33 (-0.20)
* Brent Crude $57.00 (+0.43)
👑 Gold fell to a near four-month low on Tuesday as the dollar climbed ahead of an emergency euro zone summit on Greece with the country's banks rapidly running out of cash. Now, $1,156 (+1.0)
🇺🇸 U.S. stocks overcame sharp intraday losses to end higher, after a rout in commodities abated and as eurozone leaders considered proposals to offer Greece emergency financing.
* Dow from -218 to closed +93
* S&P from -24 to closed +12
* Nasdaq from -89 to closed +5
* Dow from -218 to closed +93
* S&P from -24 to closed +12
* Nasdaq from -89 to closed +5
💵 US dollar rose to five-week high against other currencies as concerns over the debt crisis in Greece and tumbling equities in China. U.S. Dollar against a basket of 16 currencies, gained 0.4% to 87.61.
📝 Greek Prime Minister Tsipras is heading to Brussels in a last-ditch attempt to secure a bailout as Eurozone leaders meet to discuss the Greece crisis. On Monday, the ECB rejected a Bank of Greece request to raise the Emergency Liquidity Assistance (ELA) ceiling for Greek lenders by 3 billion euros and raised the discount applied to Greek government debt pledged as collateral against ELA to 45%. People familiar with the matter said the ECB sees Greece's financial system surviving without an injection of extra liquidity at least until after today's summit of Eurozone leaders.
€ European markets turned sharply lower on Tuesday on concerns that Greece's negotiations with its creditors will drag on without a viable debt plan.
🇨🇳 China's Shanghai Composite fell -1.29% to a 3-1/2 month low as deleveraging of stocks bought on margin has fueled a sell-off in Chinese stocks for four of the past five sessions. Investors concern on the government’s seeming inability to halt the relentless slide in domestic share prices.
🌴 FCPO (RM2,209) eroded to new low since 29 May. Selling was tied to seasonal peak production. Moreover, lower China Dalian, Soyoil and crude mineral oil added selling pressure. Bloomberg's poll data on June was discounted as within expectation. Technical selling as price broken below 2,220.
🌺 The ringgit hovered near its lowest level since September 1998 against the greenback amid graft allegations surrounding the country's Prime Minister Najib Razak. Now, RM3.8150
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