China stocks failed to hold the 3000 threshold with SHA declined about 0.95%.Money outflowed into Textile Weaving Machinery, Printing Package and Agriculture sectors the most. Shangdong Fengyuan Chemicals Co., rallied to limit-up as a newly-listed share and considered undervalued by most investors. CNYUSD resumed to fall with investors expected PBOC to inject more liquidity with MLF vehicle. In commodity market rebar, coal and iron ore futures showed some firmness with mines shut down by flood and supported prices. The slump of oil seed sector continued with CME soybean fell to new low since May24th, with nearly ideal weather in Midwest soybean growing area, which could continue into the end of July. It seems we have to modify our expectation for agri-sector for the next 1~2 months, and industrial metals, which affected by flood more severely, could outperform agri-sectors in both commodity and equity in the short term, e.g. next 1~2 weeks.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.