20101007 1828 FCPO EOD Daily Chart Study.

FCPO closed : 2778, changed : +48 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : getting higher, buyer regained power.
Support : 2770, 2750, 2720 level.
Resistant : 2800, 2850, 2900 level.
Comment :
Breaking new high FCPO surged upward sharply recorded gain for the 3rd day with increasing volume transacted breaking 2 levels of resistant after soy oil and crude oil futures price continue to trade higher. Daily chart formed a wide range bar candle closed little above upper Bollinger band level with the reading turned into suggesting a upside biased market development testing higher resistant level but having said that market can also having some pull back for a correction.
When to buy : buy at support/weakness/break up with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20101007 1739 FKLI EOD Daily Chart Study.

FKLI last looked : 1481.5, changed : -2.5 points, volume : lower.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : recovering, buyer defending.
Support : 1470, 1458, 1445 level.
Resistant : 1485, 1500, 1530 level.
Comment :
8 points range market FKLI eased little lower recorded decline in slow volume transaction after opened unchanged and tested lower. Daily chart formed a doji bar candle position near the upper part of a narrowing Bollinger band with the reading (Sorry! I hate to repeat this too! But volume participation is just low. Half life) still calling for a side way range bound upside biased market development.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20101007 1010 Global Economics News.

China: Hardens opposition over yuan gains, tells EU to back off
China stiffened its opposition to a rapid appreciation of the yuan, setting the stage for a confrontation over exchange rates at this week’s international monetary meetings in Washington. Premier Wen Jiabao said China will stick to its policy of gradually increasing the currency’s flexibility and lashed out at European Union leaders for teaming with the US to pressure the Chinese government. (Bloomberg)

EU: Greek 2006-2009 deficit to be revised up
Greek budget deficit and public debt figures will be revised up for 2006-2009, following audits of the crisis-hit country by the European Union's statistical office, the European Commision said. "Whether it will be a large increase or a moderate one, I cannot say. There will be a clear upward revision." (Starbiz)

EU: Exports spur growth as consumers hold back spending
Europe’s economy expanded at the fastest pace in four years in the second quarter as surging exports countered a smaller-than-estimated increase in consumer spending. Household expenditure in the 16-nation euro region rose 0.2% in the three months through June. Exports climbed 4.4%, revised from 4.3%, while GDP jumped 1%, in line with the previous estimate. (Bloomberg)

UK: Food prices climb at fastest pace in 15 months
UK food-price inflation accelerated to its fastest pace in 15 months in September because of higher crop and energy costs, the British Retail Consortium (BRC) said. Food prices rose an annual 4%, up from 3.8% the previous month and the most since June 2009. Overall shop prices rose 1.9% from a year earlier, the most in five months. (Bloomberg)

US: Companies unexpectedly cut jobs
Companies in the US unexpectedly cut jobs in September, data from a private report based on payrolls showed. Employment decreased by 39,000, the biggest drop since January, after a revised 10,000 rise in August, according to figures from ADP Employer Services. The median estimate of 37 economists surveyed by Bloomberg News called for a 20,000 gain. (Bloomberg)

20101007 1009 Malaysia Corporate News.

4 Nov for Galas by-election
The Election Commission has set 4 Nov as polling day for the Galas state assembly seat, if there is a contest, while nomination day is 26 Oct, its deputy chairman, Datuk Wan Ahmad Wan Omar announced. (The Star)

Petronas said to want RM5 a share for petrochem IPO
Petronas plans to sell shares of its petrochemical business unit for at least RM5 per share under the upcoming initial share sale. The IPO of Petronas Chemicals may raise in excess USD3bn if the shares are priced between RM5.20 and RM5.60 apiece, two people familiar with the matter said. (Malaysian Reserve)

Malaysia Marine IPO to raise RM2bn
The listing of Malaysia Marine and Heavy Engineering Holdings (MMHE) will see the country's biggest IPO for the year yet raising some RM2bn. The IPO consists of a public issue of 262m shares for institutional and retail investors, an allocation by parent MISC to French oilfield services group, Technip SA, and an offer for sale of shares by MISC. Only about RM946m of the proceeds will go to MMHE, while MISC will pocket the remainder. (BT)

Proton favors end-of-life vehicle policy in Budget 2011
Proton hopes the government will consider under Budget 2011 the end-of-life vehicle policy to sustain the automotive industry in the country. Group MD Datuk Syed Zainal Abidin Syed Mohamed Tahir said the policy provided an immediate impact to the whole ecosystem as implemented under the stimulus package a year ago.(Financial Daily)

Dialog bags RM60.7m contract from Petronas Carigali
Dialog has bagged a RM60.7m contract from Petronas Carigali. The contract was for its unit Dialog E&C SB to provide Petronas with engineering, procurement, construction and commissioning of a new condensate tank and associated facilities at Bintulu Crude Oil Terminal. (Financial Daily)

Chin declines further comment on Langat 2 action
The Energy, Green Technology and Water Minister declined to comment further on his recent statement that legal action may be taken against Selangor if the state continued to delay the construction of Langat 2 water treatment plant past December, thought Datuk Seri Peter Chin also said he would like to see the matter settled amicably. (StarBiz) 

20101007 1003 Global Market News.

OIL: Crude steady near 5-month high, awaits U.S. jobs cue
SINGAPORE, Oct 7 (Reuters) - Oil steadied within a dollar of five-month highs on Thursday, supported by falling U.S.fuel stockpiles and expectations central banks will ease monetary policy to shore up sluggish economies.
The prospect of a second round of expansionary monetary policy, known nowadays as quantitative easing stage two, or QE2,hangs upon key U.S. employment reports, with weekly statistics due on Thursday and a more comprehensive monthly set of data on Friday.

COMMODITY MARKETS: Gold leads broad rally on dollar, job worries
NEW YORK, Oct 6 (Reuters) - Gold resumed its charge forward on Wednesday as worry over a forthcoming U.S. jobs report and expectations of monetary easing again hit the dollar, taking the safe haven to a new record that led the commodities rally.
"The second round of the commodity bull-run has already started. I'm quite positive it will last possibly until 2016," said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd.

GLOBAL MARKETS: Dollar, gov't yields fall on stimulus hopes
NEW YORK, Oct 6 (Reuters) - The prospect of more cheap money from world central banks fueled a rally in global bond prices on Wednesday and pushed the dollar to a 15-year low against the yen and an 8-1/2-month low against major currencies.
"Investors continue to dance to the tune of quantitative easing and its intended inflation of asset prices," hedge fund manager Doug Kass of Seabreeze Partners told clients.

Currency tensions flare as Brazil, Japan take action
LONDON, Oct 5 (Reuters) - A drive by many of the world's economies to cap the strength of their currencies is gaining momentum, with Brazil firing the latest shot just days before world finance leaders meet in Washington. Ultra-low interest rates in Europe and Japan and concerns that the U.S. Federal Reserve is about to embark on another round of money printing that could weaken the dollar have pushed currencies to the top of the agenda for the gathering of finance chiefs from the Group of Seven rich nations on Friday.

China's next 5-yr plan to alter commodity demand-economist
LONDON, Oct 5 (Reuters) - China's next five year plan covering 2011 to 2015 will focus on domestic demand and high tech industry and that will alter the make-up of its commodities demand, an industry conference heard on Tuesday.
Larry Brainard, chief economist at research firm Trusted Sources said the growth in China's commodity demand is slowing, but will remain relatively strong as a new development strategy is rolled out later this month.

China property to sustain growth, steel-funds
LONDON, Oct 5 (Reuters) - Property will be a major driver of growth in China over the next few years, helping sustain steel demand and prices, despite government attempts to rein in the sector, an industry conference heard on Tuesday.
Chinese government measures to curb property prices recently have raised the prospect of lower demand growth for steel and other metals such as copper used in power and construction.

PRECIOUS-Dollar pushes gold to record; palladium at 9-yr high
LONDON, Oct 6 (Reuters) - Gold rose to a second successive record high on Wednesday, boosted by investors seeking to profit from weakness in the dollar and the U.S. economy, while palladium hit its highest level in nine years.
"We've seen this huge move in the euro because, essentially, it's thought the U.S. will do more quantitative easing, the ECB is trying to pull back from that and headlines such as 'IMF warns of currency wars' is all grist for the mill for gold really," said Matthew Turner, analyst at Mitsubishi.

FOREX-Dollar plumbs 8-1/2 mth lows as QE prospects weigh
LONDON, Oct 6 (Reuters) - The dollar fell on Wednesday to an 8-1/2 month low against a basket of currencies and edged towards a 15-year trough versus the yen, hurt by expectations the U.S. Federal Reserve will further ease monetary policy.
"Given all the talk of more QE by the Fed, the trend for the dollar index is lower and it can fall another 3-4 percent from these levels," said Neil Mellor, currency strategist at Bank of New York Mellon.

Metal prices soar on central bank easing hopes
SINGAPORE, Oct 6 (Reuters) - Gold hit a fresh record high , the eighth in nine sessions, and base metals surged, riding a wave of optimism that central banks will open the taps and flood markets with cheap money to keep growth from stalling.
"The second round of the commodity bull-run has already started. I'm quite positive it will last possibly until 2016," said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd.

Stocks, metals and JGBs jump on easing hopes
SINGAPORE, Oct 6 (Reuters) - Stocks and metals rose  while the dollar and Japanese bond yields fell after monetary easing moves by the Bank of Japan spurred expectations of a new round of central bank action to boost feeble economies.
"It's really going to be a struggle between Fed easing and BOJ easing, and whoever wins that contest is going to dictate the direction of dollar/yen," said Gareth Berry, a currency strategist at UBS in Singapore.

20101007 1002 Soy Oil & Palm Oil Related News.

Reuters Malaysia Crude Palm Oil Poll for the month of Sep 2010  :
Stocks seen up 2.5%
Output seen up 0.02%
Export seen up 23.8%

Soy product futures drifted lower in unison with soybeans. Soyoil futures were lower, but emerged as the strongest link in the soycomplex, garnering support from former crude oil futures, underlying supportive export demand outlooks, analysts said. Soymeal futures followed soybeans lower, with oil/meal spreading weighing on prices as well. December soyoil settled 0.04 cents or 0.1% lower at 43.78 cents per pound. December soymeal ended $3.50 or 1.2% lower at $295.80 per short ton. (Source: CME)

China Corn Demand Seen Higher Than Expected - Experts (Source: CME)
China's voracious appetite for corn may be bigger than originally thought as the Asian giant builds up stocks in a bid to ensure security of food supply, experts said Wednesday. Reports that China's crop may not reach the record levels hoped, forcing it to rely on imports from the U.S. and Argentina, have boosted prices to highs of over $5 a bushel in Chicago in recent weeks. Despite U.S. Department of Agriculture figures pegging China's corn stocks at record levels this year, a surge in grain imports in recent weeks has created skepticism in the market. China's corn imports in the first eight months reached 714,041 metric tons, according to government figures. But observers say actual exports could easily exceed 1 million tons and analysts predict they could reach between 3 million and 5 million tons this year if the country suffers a poor harvest.
"China is the wild card in the corn market," said Alex Bos, a commodities analyst at Macquarie. "If China does import 5 million tons of primarily U.S. corn in the year ahead, it will be bullish for the market. "That's a fairly large amount of corn the U.S. doesn't necessarily have," Bos said. Estimates for the size of China's corn harvest also vary widely. While the USDA has so far predicted a 7% year-on-year growth in production to 166 million tons, the U.S. Grains Council expects only a small increase of 2% to 158 million tons after its recent tour of the growing areas. China's government has already released 15 million tons of corn from the country's stocks, but growing meat demand from the country's rapidly expanding, wealthy middle class may force the country to up its corn purchases even more as the government negotiates politically sensitive fears around food security.
"Politically they see the need to have bigger strategic stocks to help manage internal inflation," said Steve Jesse, director of Barclays Capital. "We might be underestimating consumption in China."

Wheat up, corn steady on stimulus hope; soy falls
SINGAPORE, Oct 6 (Reuters) - U.S. wheat gained , while corn was largely unchanged as grains held on to advances made in the previous session amid a broad-based rally in financial markets, underpinned by hopes of monetary easing.
"Fundamentally it may not be right, but it is the optimism which is leading everyone to buy some these commodities," said Jonathan Barratt, managing director of Commodity Broking Services in Sydney.

Palm at 1-wk top on easing hopes; U.S soy crop drags
KUALA LUMPUR, Oct 6 (Reuters) - Palm oil prices hit a near one-week high  on expectations of a new round of central bank action to ginger up weakening economies although a record U.S. soy crop dragged on sentiment.
"Palm oil is treading higher again after the recent sell-off and on the domestic side, many are predicting that the seasonal rise in Malaysian production will be overwhelmed by solid exports," said a trader in Kuala Lumpur.

Analysts indicate smaller Brazil soy crop this year
SAO PAULO, Oct 5 (Reuters) - Brazil's 2010/2011 soybean crop is expected to come in slightly smaller than the record harvest last season, despite an expansion of the planted area, an average of eight outlooks indicated.
Brazil's new soy crop that producers began planting in the past days is seen at 67.9 million tonnes, the average of forecasts ranging from 65 million to 69.8 million tonnes. Last season, output reached a record 68.6 million tonnes, according to the same eight sources.

Brazil's newly moistened soy belt awaits new rains
SAO PAULO, Oct 5 (Reuters) - After the first spring rains fell on Brazil's soybean belt over the past week and triggered planting of the new crop, producers are awaiting new rains that are essential for the success of the newly planted fields.
Early planting has started in No.2 soy state Parana and No.5 producer Mato Grosso do Sul that have been favored by initial rains in late September and early October. Producers will likely step up planting as a new wave of rain is forecast for Thursday over the region.