Thursday, November 11, 2010

20101111 1853 FCPO EOD Daily Chart Study.

FCPO closed : 3396, changed : +3 points, volume : higher.
Bollinger band reading : upside biased with potential correction.
MACD Histrogram : rising higher, buyer patrolling.
Support : 3350, 3300, 3270 level.
Resistant : 3420, 3450, 3470, 3500 level.
Comment :
Continuous hit new high for the 5th day FCPO closed marginally higher with ultra high volume traded after market hit new high and face selling pressure as buyer decided to lock in profit leaded price to closed off the high as crude oil and soy oil traded firmer. Daily chart formed a shooting star doji bar candle followed by yesterday hanging man doji bar candle hinted a potential market reversal for a substantial pullback correction to take place soon with an overall upside biased market reading development.
When to buy : buy at support and weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20101111 1754 FKLI EOD Daily Chart Study.

FKLI closed : 1512.5, changed : -11.5 points,  volume : higher.
Bollinger band reading : correction range bound.
MACD Histrogram : turned downward, buyer taking profit.
Support : 1500, 1485, 1470 level.
Resistant : 1530, 1550, 1580 level.
Comment :
FKLI having pullback correction closed recorded substantial decline with increasing volume traded doing 1 points discount compare to cash market despite major Asia market traded positively. Daily chart formed a wide range down bar candle correcting downward from the upper Bollinger band level with the reading suggesting correction range bound upside biased market.
When to buy : buy at support or weakness with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20101111 1040 Local & Global Economics News.

U.S: QE2 starts tomorrow . New York Fed - the Fed branch that will execute the second quantitative easing (QE2) totaling USD600b announced on 3 Nov - said it will buy USD105b worth of US Treasuries between 12 Nov and 9 Dec via 18 open market operations. This will also include the reinvestment of USD250b-USD300b from the maturing mortgage-backed securities and agencies debt bought by the central bank during QE1 between Dec 2008 and Mar 2010 that totaled USD1.7tr. These total US Treasury purchases of USD850b-USD900b will be conducted until June 2011. (Source: Bloomberg)

U.S: Mortgage applications increase on gain in purchases for a third straight week and refinancing picked up. The Mortgage Bankers Association's index increased 5.8% in the week ended Nov. 5. Refinancing rose 6% and purchase applications were up 5.5%, the most since Oct. 1. (Source: Bloomberg)

France: Industrial production increased in September as households boosted spending. Output from factories, mines and utilities rose 0.1% MoM after stalling in August. (Source: Bloomberg)

Philippines: Exports rose at a record pace in September as Asian demand boosted sales of electronics goods, countering declining shipments to the U.S. Sales abroad grew 46.1% YoY to an unprecedented USD 5.31b after rising 37% YoY in August, the National Statistics Office said in Manila. (Source: Bloomberg)

Australia: Home loan approvals climbed in September , capping the strongest quarter since the first three months of 2009. The number of loans granted to build or buy houses and apartments gained 1.3% MoM to 48,333 from August, when they rose a revised 1.1% MoM, the statistics bureau said in Sydney. (Source: Bloomberg)

Malaysia: BNM unlikely to raise rate
The prospect of an interest hike by Bank Negara Malaysia, which will hold its final Monetary Policy Committee meeting for the year tomorrow, appears remote. Economists believe BNM may want to see stability in the global economy, and improvement in the domestic backdrop before raising the OPR. (Financial Daily)

Malaysia: IPI growth rebounded in September
The industrial production index (IPI) grew 5.6% y-o-y in September to 106.3, but contracted on a m-o-m basis by 0.8%, weighed down by a fall in the manufacturing indices. The growth of 5.6% rebounded from below 4% in the past two months. However, on a quarterly basis, the growth in the IPI slowed for the second consecutive quarter, to 4.3% y-o-y in 3Q10, from 11.1% in 2Q. (Financial Daily)

China: Orders reserve ratio increase after trade surplus surges
China’s central bank raised lenders’ reserve requirements as cash from October’s larger-than-forecast USD27.1bn trade surplus threatened to add to the risk of asset bubbles and accelerating inflation. Reserve requirements will increase 0.5% points from 16 Nov, the People’s Bank of China said. Inflows of cash from monetary easing abroad and investors speculating on gains in the Yuan threaten to worsen Chinese inflation forecast to have risen to a two-year high in October. (Bloomberg)

China: Posts $27.1 billion trade surplus for October
China’s exports rose 22.9% in October from a year earlier as imports climbed 25.3%, leaving a trade surplus of USD27.1bn, the state-run Xinhua News Agency reported. The median estimate in a Bloomberg News survey of 27 economists was for USD25bn trade surplus. Analysts forecast a 23% gain in exports and a 28.3% increase in imports, according to the survey (Bloomberg)

Australia: November consumer confidence falls 5.3% on rate rise
Australian consumer confidence declined in November to a five-month low after the central bank resumed raising interest rates, sending mortgage payments higher. The sentiment index fell 5.3% to 110.7 this month, according to a Westpac Banking Corp. Reserve Bank of Australia Governor Glenn Stevens and his board boosted the benchmark interest rate to 4.75% on 2 Nov, ending a five-month pause as a mining investment boom bolsters the economy. A gauge of family finances dropped 10.2%, the biggest decline among five components in the sentiment index, Westpac said. (Bloomberg)

US: Jobless claims fall to lowest level since July
The number of Americans filing initial jobless claims last week fell to the lowest level in four months, reinforcing evidence the US labor market is healing. Applications for jobless benefits declined by 24,000 to 435,000 in the week ended 6 Nov, lower than the median forecast in a Bloomberg News survey, Labor Department figures showed. The total number of people collecting unemployment insurance fell to the lowest level since November 2008, and those receiving extended payments also declined. (Bloomberg)

US: Trade gap shrank as exports increase
The US trade deficit shrank more than forecast in September as exports climbed to the highest level in two years, showing a weaker dollar is helping strengthen the economic recovery. The gap narrowed by 5.3% to USD44bn, smaller than the USD45bn median estimate of economists surveyed by Bloomberg News. Another report showed the number of claims for jobless benefits fell last week to a four-month low. A 7.5% drop in the USD over the past four months is making American goods cheaper overseas as demand in emerging economies propels sales for companies like General Electric Co. (Bloomberg)

20101111 1028 Malaysia Corporate News.

IOI Corp: Buys back USD10m bonds. IOI Corp Bhd announced that it had purchased part of its USD600m (RM1.85b) zero coupon exchangeable bonds due to 2013 which would be cancelled in accordance with terms and conditions of the bonds, issued on Jan 15, 2008. The aggregate principal amount of bonds purchased and to be cancelled amounted to USD100m. The remaining aggregate principal bonds outstanding stands at USD444.8m. (Source: The Edge Financial Daily)

MAHB: Khazanah to sell stake in MAHB for RM404m. Khazanah Nasional Bhd plans to sell a second tranche of shares in Malaysia Airports Holdings Bhd (MAHB) for as much as RM404m. Khazanah, which owns 60% of the airports operator, plans to place out 66m shares, or a 6% stake, at an indicative price range of RM6 to RM6.12. (Source: The Malaysian Reserve)

OSK: Says it's not in negotiations for any tie-ups. OSK Holdings Bhd has not entered into any serious and exclusive negotiations with any party for any form of equity and strategic partnerships. OSK was down 4sen to RM1.87 on volume of 32.7 m shares. (Source: The Star)

Bond rating agency: S&P to buy RAM stake. Standard & Poor?s (S&P) is in talks with RAM Holdings Bhd to acquire a stake in the latter and the deal is expected to close by early next year. Sources said RAM has established affiliation with S&P for some time and S&P is interested to own a stake in RAM Holdings after a long relationship. (Source: The Star) 

Syabas sues Selangor govt for RM471.6m
Puncak Niaga Holdings’ subsidiary, Syarikat Bekalan Air Selangor SB (Syabas), has sued the Selangor state government for RM471.64m. Puncak Niaga claimed that the RM471.64m was due to it as compensation for the period between 1 January 2009 and 31 December 2009 in return for not raising water tariffs. Syabas had signed a concession agreement with the Selangor government and the federal government on 15 December 2004. In September, the Selangor government reportedly said that it would not compensate Syabas for RM308mi in alleged lost revenue, despite threats of a lawsuit. (BT)

HSL wins RM67m Sarawak road job
Hock Seng Lee (HSL) has been awarded the RM67.3m Tuie/Supa/Manggut Road construction project in Betong, Sarawak by Adiqa Engineering SB. The scope of works included earthworks, road, drainage and other related works. The project is due to be completed by May 2013. (Starbiz)

MAS signs up maintenance support for B737-800s
Malaysia Airlines Engineering and Maintenance (MAS E&M) and Air France Industries and KLM Engineering and Maintenance (AFI KLM E&M) have signed a 10-year component support contract for 35 of the carrier’s fleet of B737-800s, with an option for a further 20 aircraft. The 737 Component Services Programme was operated in partnership with Boeing. Simultaneously, a regional component pool would be set up in Kuala Lumpur to provide services to MAS and other customers. (Starbiz)

Khazanah to let fly stake in MAHB for RM404m
Khazanah Nasional, Malaysia’s sovereign wealth fund, plans to sell a second tranche of shares in Malaysia Airports Holdings (MAHB) for as much as RM404m. According to a wire report yesterday, the government owned investment arm plans to place out 66m shares, or a 6% stake, at an indicative price range of RM6- RM6.12. The report said Khazanah which sold a 7.7% stake in MAHB in March, has an upside option to sell an additional 22m shares. This latest sale is being managed by Nomura Holdings Inc, HSBC Holdings plc and RHB Capital. (MalaysianReserve)

20101111 0940 Renewables Energy Related News.

BEIJING, Nov 10 (Reuters) - China's new five-year plan for renewable energy will include pledges to boost wind power capacity to 90 gigawatts and also dam the UNESCO-protected Nu River in the southwestern province of Yunnan, according to the China Securities Journal.
Citing information obtained from China's National Energy Administration, the paper said a draft of the plan, which covers the 2011-2016 period, had already been submitted to other government departments for consultation.

MILAN, Nov 9 (Reuters) - Italy's rapidly growing renewable energy company TerniEnergia  said it would build 25 megawatts of solar power plants in the fourth quarter, raising its total solar capacity to about 110 MW by the end of 2010.
TerniEnergia has started building industrial-size photovoltaic installations, which turn sunlight into power, with a total capacity of 32 MW in the last quarter and 25 MW would be completed by the end of 2010, it said in a statement on Tuesday.

LONDON, Nov 9 (Reuters) - The Scottish Government has approved the 144 megawatt (MW) Fallago Rig onshore wind farm, southeast of Edinburgh, it said on Tuesday.
The 48 turbine wind farm, capable of providing 66,000 homes with power, is being developed by North British Wind Power, the government added.

PRAGUE, Nov 9 (Reuters) - The Czech Republic on Tuesday halved feed-in tariffs for solar plants opening from 2011 and approved new solar and carbon taxes to deal with a solar boom that threatens to send home and business power prices soaring.
The Czech Energy Regulatory Office set a new tariff of 5,500 Czech crowns ($311.3) per megawatt hour for plants connected to the grid in 2011 with more than 100 kilowatt capacity, down from 12,150 crowns for those connecting in 2010. Plants with a capacity of 30-100 kW will now receive 5,900 crowns.

MOROCCO DELAYS SOLAR UNIT TENDER TO DEC -MINISTERRABAT, Nov 9 (Reuters) - Morocco said on Tuesday it would take bids for the first unit in a national $9 billion solar power programme in December instead of November but added that it would not delay the construction of the unit.
"The outcome of the pre-qualification stage of the tender will be known in mid-November. Those who will be selected in mid-November will be invited to participate in the bids at the end of December," Energy and Mining Minister Amina Benkhadra told Reuters on the sidelines of an energy conference.

LONDON, Nov 9 (Reuters) - Global oversupply of gas is set to rise above 200 billion cubic metres (bcm) next year and capacity is likely to exceed demand for another 10 years, despite rising gas use, the International Energy Agency said on Tuesday.
"The gas glut will be with us 10 more years," IEA chief economist Fatih Birol told Reuters in an interview.

BRUSSELS, Nov 9 (Reuters) - The European Union launched a competition on Tuesday for about 4 billion euros ($5.6 billion) of funding to help companies compete in the green technology race against China, Japan and the United States.
All eligible projects should be up and running by 2015. Big winners are likely to include power generators such as Germany's E.ON  and engineers like Alstom of France .

PARIS, Nov 8 (Reuters) - France is set to ask for proposals to develop offshore wind farms, boosting the country's renewable energy output, a government official told Reuters on Monday.
Junior ecology minister Chantal Jouanno said the first series of requests would be for proposals to provide 3 gigawatts (GW) of capacity as France seeks to develop and gain experience in offshore wind technology.

FRANKFURT, Nov 8 (Reuters) - Germany's Siemens  will make bolt-on acquisitions to expand its green products and technologies, Europe's biggest conglomerate said on Monday.
The bellwether of euro zone's largest economy said it was aiming to generate revenue of more than 40 billion euros ($56 billion) from its environment portfolio by 2014.

NAIROBI, Nov 5 (Reuters) - Kenya's Geothermal Development Company (GDC) has invited prequalification bids from investors for the development of 400 megawatts (MW) of power from underground steam.
The state-owned company expects to drill 120 wells in the first phase of the project that will contribute about a quarter of the country's current installed power capacity, as east Africa's biggest economy shifts production to green sources.

LOS ANGELES, Nov 4 (Reuters) -  NextEra Energy Inc  won federal approval on Thursday for a $1 billion-plus, 250-megawatt solar plant in California, the latest in a string of solar-power plants to get the greenlight in the nation's most populous state.
When completed, the plant will be big enough to power at least 75,000 homes, the U.S. Department of the Interior said.

TIANJIN, China, Nov 4 (Reuters) - French engineering group Alstom  said it will boost its presence in the Chinese power sector further after unveiling a new hydropower turbine unit in the northern Chinese city of Tianjin on Thursday.
The president of Alstom's power unit, Philippe Joubert, told Reuters the company is confident of remaining competitive in China's electricity sector despite strong competition from domestic turbine manufacturers.

20101111 0939 Biofuels Related News.

NEW YORK, Nov 9 (Reuters) - Celanese Corp  plans to spend roughly $350 million on two coal-to-ethanol facilities in China, part of a broad push to supply ethanol for industrial chemical production.
The company, which is trying to revamp its business model to focus more on high-margin specialty chemicals, said it will use proprietary technology to produce about 400,000 tons of ethanol annually at each of the plants, which likely will be built on the Chinese coast.

WASHINGTON, Nov 9 (Reuters) - Livestock producers and food industry groups filed a suit on Tuesday seeking to overturn a U.S. decision to allow higher levels of ethanol in gasoline, saying it could push up food prices.
The Grocery Manufacturers Association, the National Meat Association and other groups sued the Environmental Protection Agency, saying regulators overstepped their authority when they ruled last month that gasoline retailers could sell fuel containing up to 15 percent ethanol. That is an increase from the current allowable level of 10 percent.

BRUSSELS, Nov 8 (Reuters) - European plans to promote biofuels will drive farmers to convert 69,000 square km of wild land into fields and plantations, depriving the poor of food and accelerating climate change, a report by green groups warned.
That estimated area equals the size of the Republic of Ireland.

CHICAGO, Nov 4 (Reuters) - The odds of U.S. Congressional leaders extending current biofuels tax credits are slim if the measures do not pass in the lame duck session that begins Nov. 15, a leading farm policy analyst said on Thursday.
"If it doesn't happen in the lame duck session, it may never happen," Gary Blumenthal, head of World Perspectives, a Washington-based consultancy specializing in the agri-food sector, told the Reuters global ags online forum.

20101111 0938 Global Market News.

OIL: Crude steady after closing at 25-month high
TOKYO, Nov 11 (Reuters) - U.S. crude futures were steady on Thursday after closing at a 25-month high a day earlier, getting support from U.S. government data showing an unexpectedly heavy drawdown in crude and product inventories last week.
The U.S. Energy Information Administration reported a 3.3 million-barrel drawdown last week, compared with forecasts for a 1.4 million-barrel build.

COMMODITY MARKETS: Hit by rebounding dollar but oil bucks sell-off
NEW YORK, Nov 10 (Reuters) - Most commodities fell on Wednesday as money flows into the sector changed course on a recovering dollar, but oil bucked the sell-off with a rally to two-year highs after U.S. crude stockpiles fell.
The drama was concentrated in illiquid niche markets like cotton and silver futures, which ended down 5.6 percent and 7 percent respectively, after leading the sector in recent months. Gold futures ended lower as well, mostly reflecting Tuesday's aftermarket sell-off from new peaks over $1,400 an ounce.

GLOBAL MARKETS: Dollar hits 1-month high, U.S. stocks rebound
NEW YORK, Nov 10 (Reuters) - The dollar hit a one-month high on Wednesday after data pointed to an improving U.S. labor market while Wall Street rose as investors set aside recent worries whether a rally would continue.
"The U.S. yield curve has steepened, and since the whole world has had the same position on, we've got a lot of end-of-the-year, risk management going on," said Sebastien Galy, senior currency strategist at BNP Paribas.

U.S. oil, product stocks fall sharply - EIA data
NEW YORK, Nov 10 (Reuters) - U.S. crude and oil product inventories fell sharply last week as crude imports fell and fuel demand rose from year-ago levels, according to a weekly report from the Energy Information Administration on Wednesday.
Domestic crude stocks fell 3.27 million barrels to 364.9 million barrels in the week to Nov. 5, while crude imports fell 489,000 barrels per day to 8.06 million bpd, the data showed.

China Oct commodity imports slump after strong Sept
BEIJING, Nov 10 (Reuters) - China's imports of major commodities slumped in October after a surprisingly strong September, with crude oil shipments recoiling 30 percent and copper volumes at the lowest level for a year.
Analysts were quick to point out seasonal factors that could be at work, such as the week-long holiday at the start of October and the rush to ship supplies to China before the onset of winter, when transport networks often get snarled and domestic production slows.

China's 2010 inflation to exceed 3 pct-report
SHANGHAI, Nov 10 (Reuters) - China's full-year inflation rate will exceed the government's target and come in at slightly above three percent this year, the Shanghai Securities News reported, citing a top official from the National Reform and Development Commission (NDRC).
The government has set an inflation target ceiling of three percent this year, but inflationary pressure "has been more severe than expected", said Zhang Ping, head of the NDRC.

China raises bank reserves as cash inflows surge
BEIJING, Nov 10 (Reuters) - China on Wednesday ordered its banks to put more money aside as required reserves, a tightening step that mops up some of the cash that has been streaming into the country and posing a growing inflationary threat.
Although Chinese officials have directed their ire at U.S. monetary easing as a cause of unwanted speculative inflows, data earlier in the day provided a reminder that a whopping trade surplus is the main source of Beijing's liquidity headache.

US wholesale inventory surge implies weakness ahead
WASHINGTON, Nov 9 (Reuters) - U.S. wholesale inventories jumped more than expected in September, suggesting output will remain soft through year-end as businesses try to trim stocks.
Inventories surged 1.5 percent after an upwardly revised 1.2 percent gain in August, the Commerce Department said on Tuesday. Analysts polled by Reuters had been expecting a 0.7 percent increase.

Global commodity AUM rises 9 pct in Q3-BarclayHedge
NEW YORK, Nov. 9 (Reuters) - Commodity trading advisors (CTAs) saw global assets under management  rise by 9 percent in the third quarter to $245.9 billion from $223.4 billion in the second quarter, fund tracker BarclayHedge said on Tuesday.
Sol Waksman, founder and president of BarclayHedge, told Reuters that interest in commodities investment as continued to rise, despite returns sometimes disappointing.

PRECIOUS-Gold rises over $1,400 on euro zone debt concerns
LONDON, Nov 10 (Reuters) - Gold rallied by 0.5 percent on Wednesday, after its choppiest trading session in six months the day before, as concerns about euro zone debt reignited safe-haven buying, while silver pared Tuesday's 3 percent drop.
Spot gold rose 0.6 percent to $1,400.05 an ounce by 1033 GMT, off the all-time peak of $1,424.10.

FOREX-Euro edges up vs dollar on Mideast demand
LONDON, Nov 10 (Reuters) - The euro rose against the dollar on Wednesday, boosted by Middle East buying, while key technical support helped curb selling of the single currency, seen in the past few days.
The euro recovered from a three-day losing streak versus the dollar, as investors speculated more quantitative easing by the Federal Reserve will continue to sting the U.S. currency as the European Central Bank sticks to its current monetary policy.

U.S. wheat drops 2 pct on dollar, weather outlook
SINGAPORE, Nov 10 (Reuters) - Chicago wheat futures slid more than 2 percent to a near one-week low as a strengthening dollar and an outlook for rains in U.S. winter crop areas weighed on the market.
"The factor that may be more of an influence at the moment is the continued movement in the U.S. dollar," said Luke Mathews, commodity strategist at Commonwealth Bank of Australia.

China data hurts stocks, copper; dollar rises
LONDON, Nov 10 (Reuters) - World stocks and copper prices fell on concerns about softening demand from China after slower-than-expected import data, while the dollar recovered further and hit its highest level in two weeks.
"Growth in China imports has slowed down, that will be a bit of a concern for the market," Heino Ruland, strategist at Ruland Research in Frankfurt, said. "But earnings have been better than expected and any dip could be a buying opportunity."

Soaring food prices demand better output -UN body
HANOI, Nov 10 (Reuters) - A rise in commodity prices could spark unrest and is troubling confirmation that countries need to boost their food production, the head of a United Nations agency for agricultural development said.
A food price index compiled by another U.N. agency, the Food and Agriculture Organization, registered its highest level in October since mid-2008, when soaring prices fed social unrest in Africa, the Caribbean and elsewhere

20101111 0937 Soy Oil & Plam Oil Related News.

Soy product futures ended mixed, with meal following beans lower on profit taking while soyoil rallied on outside market support. Soyoil futures managed to divorce itself from the negative price theme in the Ag futures, underpinned by spillover strength from crude oil futures and supportive global vegoil demand, analysts said. CBOT Dec soyoil ended 0.55 cents of 1% higher at 53.95 cents a pound, while December soymeal traded $6.90 or 1.9% lower at $355.40 a short ton.(Source: CME)

Brazil's 2010-11 Soy Crop Seen At 67.7M To 69M Tons (Source: CME)
Brazil's second official 2010-11 soybean crop estimate on Wednesday was close to analysts' expectations, and the data is unlikely to spark any aggressive trade in the local market. Brazil's upcoming 2010-11 soy crop was pegged at between 67.7 million metric tons and 69 million tons, which compares with 68.7 million tons last season and is virtually unchanged from its prior estimate, the National Commodities Supply Corp., or Conab, said.
"Conab's soy crop estimate brought no surprise," Steve Cachia, an analyst at consultancy Cerealpar, said. Most analysts are banking on a Brazil soybean crop of between 68 million tons and 69 million tons, so there was no major impact on world soy prices that rose to 26-month highs this week. Conab's estimate was also close to the U.S. Department of Agriculture's estimate published on Tuesday for the Brazilian soybean crop of 67.5 million tons. "A million tons more or less won't make a difference to prices," Cachia said.

Wilmar Posts 60% Drop In Net On Squeezed Margins (Source: CME)
Wilmar International Ltd. (F34.SG), the world's biggest palm oil trader by volume, reported a worse-than-expected 60% drop in its third quarter net profit after an increase in raw material prices squeezed margins in its oilseeds and grains business, but the company sounded a cautiously optimistic note about its prospects. Net profit for the quarter ended Sept. 30 fell to US$259.5 million from US$652.9 million a year earlier. The median estimate of six analysts polled by Dow Jones Newswires was for a net profit of US$416 million. The net profit was also lower because of comparison with a high base last year when the company reported a US$167 million exceptional gain from the sale of its new shares in Wilmar China Ltd. to members of the Kuok Group, a Wilmar shareholder.
Revenue in the third quarter rose 23.3% to US$7.76 billion from US$6.3 billion because of increased sales volume and higher prices of agricultural commodities, Wilmar said in a statement to the Singapore exchange. Weaker crush margins and more expensive raw materials resulted in a quarterly pre-tax loss of US$37.1 million in the oilseeds and grains merchandising and processing segment. For the nine months, pre-tax profit fell 37% to US$ 290.7 million.

Palm oil rally snaps on strong dollar, weak demand
KUALA LUMPUR, Nov 10 (Reuters) - Malaysian crude palm oil futures snapped a four-day rally on concerns over weak overseas demand and a firmer dollar after hitting a fresh two-year high early in the session.
"Local sentiments were pressured by weak exports data and high palm oil stocks in October," said a trader with a foreign brokerage in Kuala Lumpur.

Brazil soy crop seen roughly unchanged from Oct
SAO PAULO, Nov 10 (Reuters) - Brazil's 2010/11 soybean crop was forecast at between 67.7 million and 69 million tonnes, roughly unaltered from the 67.6 million to 68.9 million tonne range seen in October, the government's crop supply agency Conab said Wednesday.
In the agency's second estimate for the crop, Conab said Brazil's total corn output for the season would reach between 51.8 million and 52.7 million tonnes, compared with a range of 51.8 million to 52.4 million tonnes seen in October's forecast.

Rains may cut Malaysian palm output, boost prices
JAKARTA, Nov 10 (Reuters) - Malaysia's palm oil production may fall 5 to 10 percent each month for November and December as heavy rains curb yields and floods make transportation of the vegetable oil difficult, three planters said on Wednesday.
Rains in northern mainland Malaysia have led to floods and planters are concerned the northeast monsoon season in the third quarter of this year will bring heavier than normal showers to key palm oil growing areas in the south.

China Oct soy imports lowest since March
BEIJING, Nov 10 (Reuters) - China, the world's largest soy buyer, imported 3.73 million tonnes of the oilseed in October, the lowest since March and down 19.6 percent from September, official customs figures showed on Wednesday.
The low imports, which were still 48 percent higher than the year-ago period, have helped domestic crushers digest a record level of stocks since the largest-ever monthly imports in June at 6.2 million tonnes.

Brazil to support endangered GMO-free soy seed
BRASILIA, Nov 9 (Reuters) - World No. 2 soy grower Brazil launched a program on Tuesday to produce more GMO-free seed as modified varieties marketed by multinational biotech firms are squeezing out the conventional type.
The program will focus on Brazil's top soy state, Mato Grosso, and comes in response to growers' increasing difficulty in finding sufficient conventional soy seed to supply a market offering them a premium for non-GMO produce.

USDA tightens soy supply view with surprise yield cut
WASHINGTON, Nov 9 (Reuters) - The government unexpectedly cut its estimate of the record-large U.S. soybean crop by 1 percent on Tuesday due to lower yields, and said red-hot exports will reduce the stockpile to a bare-bones three-week supply by next fall, one-third thinner than forecast.
In a monthly update, the Agriculture Department also pared its forecasts for U.S. wheat and corn crops by 1 percent, but traders said the focus was squarely on soybeans, which have lagged the rally in other grain prices this year.

20101111 0923 FCPO EOD Daily Chart Study. (10 Nov 2010)

FCPO closed : 3393, changed : +30 points, volume : higher.
Bollinger band reading : upside biased with potential correction.
MACD Histrogram : rising higher, buyer dominated market.
Support : 3350, 3300, 3270 level.
Resistant : 3420, 3470, 3500 level.
Comment :
Another higher high recorded FCPO closed higher with better volume traded despite a mixed export data as market seems taking serious concern on weather factor plus a stronger soy oil futures price. On the other hand MPOB released official Oct 2010 CPO data with the stock level continue to build up higher but was lower than consensus expectation. Daily chart formed a hanging man doji bar candle position way way above upper Bollinger band level hinted that market really need a correction to take place soon after 4 days climb with overall market still having upside biased development.
When to buy : buy at support and weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20101111 0905 FKLI EOD Daily Chart Study(10 Nov 2010).

FKLI closed : 1524, changed : -3 points,  volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : turned downward, buyer taking profit.
Support : 1500, 1485, 1470 level.
Resistant : 1530, 1550, 1580 level.
Comment :
Hit new high FKLI eased lower having pullback correction with improving volume changed hand after four consecutive days of gained recorded. Daily chart formed a doji bar candle closed just below the upper Bollinger band level with the reading suggesting correction range bound upside biased market.
When to buy : buy at support or weakness with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.