Friday, January 7, 2011

20110107 1842 FCPO EOD Daily Chart Study.

FCPO closed : 3761, changed : -103 points, volume : higher.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakenning, buyer reducing exposure.
Support : 3750, 3720, 3700, 3650 level.
Resistance : 3770, 3800, 3830, 3850 level.
Comment :
FCPO surrender all yesterday gain and recorded severe losses with much higher volume changed hand ahead of next Monday export data release while soy oil continue to the fall after yesterday fall due to a strengthening U.S. Dollar.
Daily chart formed a down bar candle and something similar to but no exactly like an evening start pattern formation after market opened gap down and fall all the way to closed near the low of the day heading toward middle Bollinger band support level with the reading suggesting a correction range bound little upside biased market development testing lower support levels.
On the other hand there is a negative divergence appear between price and MACD indicators signaling that the uptrend momentum has turned weak with possible major correction to take place. 
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.

20110107 1744 FKLI EOD Daily Chart Study.

FKLI closed : 1571.5, changed : + 3.5 points,  volume : higher.
Bollinger band reading : upside biased with possible pullback.
MACD Histrogram : rising, buyer rules.
Support : 1570, 1560, 1550 level.
Resistance : 1580, 1590, 1600 level.
Comment :
FKLI closed for weekend recorded gain with better volume changed hand up 41.5 points for the entire week while regional market closed mixed ahead of tonight U.S. payroll data report day.
Daily chart formed the second doji bar candle closed nearer to the upper Bollinger band level compare to yesterday suggesting a pullback correction to take place soon with the underlying reading remained upside biased.
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.

20110107 1447 Breaking News on Vegetable Oils.

Jan. 7 (Bloomberg) -
- India, the biggest buyer of vegetable oils after China, plans to increase its oil-palm area more than sevenfold as it seeks ways to lower its cooking-fat import bill of $8.4 billion. Plantations may cover 1 million hectares (2.47 million acres) in the next five years, from 130,000 hectares now, Farm Secretary P.K. Basu said in an interview yesterday in New Delhi. “Strategies will be finalized by March for raising output of oilseeds, mainly oil palm,” Basu said. The planned increase in area will help the country augment its cooking-oil production by about 4 million metric tons, he said.

20110107 1243 Global Economics Related News.

U.S: Fed's balance sheet at record. The Federal Reserve's total assets rose by to USD2.44 trillion, the fourth record in five weeks, as the central bank bought USD185.6b of US Treasuries between 12 Nov 2010 and 5 Jan 2011 under QE2. (Source: Bloomberg)

Germany: Factory orders in November surge on demand from abroad. Orders, adjusted for seasonal swings and inflation surged 5.2% MoM from October, when they gained 1.6% MoM. From a year earlier, orders climbed 20.6% YoY when adjusted for working days. (Source: Bloomberg)

U.K: Service industries unexpectedly contract in December on winter weather. The gauge fell to 49.7 from 53 in November, the first reading since April 2009 to show the industries shrank, Markit Economics Ltd. and the Chartered Institute of Purchasing and Supply said. Readings above 50 indicate growth. (Source: Bloomberg)

China: Tackling capital flows on of policy agenda in 2011. State Administration on Foreign Exchange (SAFE) said it will "crack down" on hot money and step up monitoring of cross border capital flows this year. (Source: Bloomberg)

Brazil: Sets reserve requirement to stem Real rally. Brazil's central bank set reserve requirements on short dollar positions held by local banks in its third attempt since October to stem a rally in the currency. Starting 4 Apr, banks must deposit 60% of their USD short positions in cash at the central bank after deducting USD3b pr their capital base, whichever is smaller. The new rules have the potential to reduce short positions in the dollar to USD10b from USD16.8b in Dec 2010 as banks seek to avoid paying reserve requirements on currency operations, Aldo Mendes, the central bank's director of monetary policy told reporters in Brasilia. (Source: Bloomberg)

HK: Lawmakers set the city's first statutory minimum wage at HKD28 (USD3.60) per hour as a report showed the wealth of the city's top 40 billionaires jumped 21%. The 40 richest people have USD163b, up from USD135b in 2010, after China's growth bolstered their investments, according to Forbes Magazine. Legislators ratified the government's plan to increase salaries for about 314,600 workers by an average of 17%. (Source: Bloomberg)

Philippines: Moody's raises rating outlook to positive from stable two months after Standard & Poor's lifted its rating on the country's debt. The change in outlook means Moody's is more likely to raise the debt rating. The nation's improved external-payments position has reduced its vulnerability to shocks, the company said in a statement. The rating was kept at Ba3, three levels below investment grade. (Source: Bloomberg)

Australia: Home-building approvals fell in November for the third time in four months, adding to the case for the central bank to keep interest rates unchanged. The number of permits granted to build or renovate houses and apartments dropped 4.2% MoM from October, when they rose a revised 8.3% MoM, the Bureau of Statistics said in Sydney. (Source: Bloomberg)             

China: May report USD20.8bn trade gap before Hu, Obama meet
China may report a USD20.8bn trade surplus for December, adding to pressure for Yuan gains nine days before Presidents Hu Jintao and Barack Obama meet to discuss issues including global economic imbalances. The surplus will exceed USD20bn for the sixth time in seven months, taking the full-year total to USD191bn, according to the median estimate in a survey. The customs bureau will release the data 10 Jan 2011. (Bloomberg)

Australia: Floods likely to slow economy, extend RBA rate pause
Northeastern Australia’s worst floods in half a century are likely to slow the nation’s economy and prompt the central bank to refrain from raising interest rates as inundated coal mines reduce export income. Disruption to mining and damage to crops in Queensland will damp national growth by 0.2-percentage point this quarter, according to the median of eight estimates in a Bloomberg survey. The Reserve Bank of Australia, which meets 1 Feb 2011, may discuss what could prove to be a “significant impact” on the economy, board member Donald McGauchie said. (Bloomberg)

Europe: Economic confidence gains more than forecast
European confidence in the economic outlook improved more than economists forecast in December, led by increasing optimism among German manufacturers. An index of executive and consumer sentiment in the Euro region jumped to 106.2 from 105.1 in November, the European Commission in Brussels said. That’s the highest since October 2007. Economists forecast a gain to 105.8, the median of estimates in a survey showed. (Bloomberg)

UK: Service industries unexpectedly contract on winter weather
UK service industries from banks to airlines unexpectedly contracted in December for the first time in more than 1.5 years as winter weather gripped the economy. The gauge fell to 49.7 from 53 in November, the first reading since April 2009 to show the industries shrank, Markit Economics Ltd. and the Chartered Institute of Purchasing and Supply said. Economists forecast 52.8, the median of 18 estimates in a news survey shows. Readings above 50 indicate growth. (Bloomberg)

US: Fewer Americans filed jobless claims over past month
Fewer Americans filed claims for unemployment insurance payments over the past month, indicating the labor market is improving. The average number of applications for jobless benefits over the past four weeks dropped to 410,750, the lowest level since July 2008, Labor Department figures showed. Claims for the week ended 1 Jan 2011 rose by 18,000 to 409,000. (Bloomberg)

20110107 1242 Malaysia Corporate Related News.

MAHB: Passenger traffic at Turkish airports rises. The number of passengers at Turkish airports rose 20% to 102.7m last year as foreign arrivals and domestic travel increased. Istanbuls Ataturk Airport, the busiest transport hub in Turkey, saw passenger numbers rose 8% to 32.2m. Meanwhile number of passengers in Sabiha Gokcen Airport increased 71% to 11.1m. Sabiha Gokcen is run by a consortium including Turkey group Limak Holding, Indian firm GMR Infrastructure and Malaysia Airports Holdings Bhd. (Source: Business Times)

MAS: Firefly to offer lowest fares in Msia. Firefly has pledged to offer the lowest fares in the country with its new jet operations. The airline unveiled its new fleet of Boeing 737-800 aircraft, which would lower unit costs substantially. (Source: The Edge Financial Daily)

Sunway City: Launches RM500m development. Sunway City Bhd has launched its latest integrated mixed development - Sunway Nexis at Dataran Sunway, Petaling Jaya. The development covers 5.83 acres with a gross development value of RM500m. The commercial development at Sunway Nexis comprises three-storey retail shops with sizes ranging from 4,133 sq ft to 8,718 sq ft and priced at RM4m and above. (Source: The Star)

Hap Seng: Shares suspended. Hap Seng Consolidated Bhd announced yesterday that trading in its shares would be suspended from 9am to 5pm today pending announcement of a major corporate exercise. (Source: Bursa Malaysia)

Utilities: Selangor makes fresh offer to water players. Selangor has made a new offer to the water concessionaires in another effort to resolve the impasse in the states water-restructuring exercise. The new offer, worth over RM9b, was the third by the state government and the fifth overall. The states previous offers were RM5.7b in early 2009 and RM9.4b made in mid-2009. (Source: The Star)              

Maybank makes RM4.2bn bid for Kim Eng
Maybank roared into 2011 with a whopping RM4.2bn takeover offer for Singapore-listed regional stockbroker Kim Eng Holdings Ltd in a bid to jump-start its investment banking and equities business across the region. Under the deal, Maybank through wholly-owned Aseam Credit SB will acquire a combined 44.6% stake in Kim Eng at SGD3.10 a share from Kim Eng chairman and CEO Ronald Anthony Ooi and Taiwan's Yuanta Securities Asia Financial Services Ltd. The deal would trigger a general offer for the company if it goes through. Maybank plans to acquire the remaining 55.4% shares in Kim Eng and delist the company. (The Sun)

Selangor makes fresh offer to water players
Selangor has made a fresh offer to the water concessionaires in another effort to resolve the impasse in the state’s water-restructuring exercise. Worth over RM9bn, according to Menteri Besar Tan Sri Abdul Khalid Ibrahim in a press briefing yesterday, the offer was the third by the state government. The offer, which was dispatched to the companies yesterday, includes taking over all assets and liabilities of the concessionaires. (StarBiz)

Ramunia eyes Borcos Shipping Ramunia, which is without a core business, is in talks to acquire Syarikat Borcos Shipping SB, sources said. Negotiation is rumored to have commenced, but it is not known how the acquisition will be concluded. (Financial Daily)

TM to complete probe in 1 month
TM is expected to finish its internal investigation on alleged bribes to its employees, a month from the board subcommittee inaugural meeting on 3 Jan. (Financial Daily)

Passenger volume at Malaysian airports to grow by 7%
Transport Minister Datuk Seri Kong Cho Ha expects a conservative 7% growth in passenger arrivals at Malaysian airports this year, riding on the fast growing Asia Pacific region. “We have achieved more than 15% growth in 2010 and are confident of seeing growth this year,” he said. (The Malaysian Reserve)

20110107 1109 Breaking News.

China Stocks Drop on Tightening Concern, Commodity Slump, Trim 2011 Gain (Source: Bloomberg)

China’s stocks fell, narrowing the benchmark index’s gain for the first week of the year, after the government said it will step up measures to tighten liquidity and raw-material prices slumped.
Jiangxi Copper Co. and PetroChina Co., the nation’s producers of copper and oil, led declines for commodity stocks as a stronger dollar reduced the attractiveness of metals as an alternative investment. Ping An, China’s second-biggest insurer, rebounded from the biggest drop in two months after saying reports of a re-financing exercise are “ungrounded.”
“Inflation pressure will force the government to take tighter monetary policies this year,” said Zhang Qi, an analyst at Haitong Securities Co. in Shanghai. “As a rule, subsiding liquidity is a bad thing for equities.”
The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, dropped for a third day, losing 6.8, or 0.2 percent, to 2,817.36 at 9:34 a.m. The CSI 300 Index fell 0.2 percent to 3,153.78.
The Shanghai gauge has gained 0.3 percent this week after dropping 14 percent in 2010, the worst performer among the 14 biggest world benchmark indexes. The government ordered banks to set aside more reserves six times in 2010 and boosted rates twice to tame inflation and curb asset bubbles after record gains in lending and property prices.
Jiangxi Copper fell 2.4 percent to 43.93 yuan. PetroChina lost 0.4 percent to 11.10 yuan.
Commodities slumped yesterday after the dollar strengthened on prospects U.S. unemployment rates probably dropped last month, reducing the appeal of metals as alternative investment.

Steel Outlook
Crude oil for February delivery declined 2.1 percent to $88.38 a barrel in New York yesterday. The London Metal Exchange Index of six metals including copper and aluminum dropped 0.2 percent yesterday, falling for a second day. Gold futures for February delivery declined for the third straight day yesterday.
Goldman Sachs Group Inc. said it’s negative on Chinese steel stocks on a “12-month horizon” because of rising production, weakening demand and the potential for more policy tightening measures.
“Potential tightening measures are likely to cause further near-term pressure on Chinese commodities,” Goldman analysts led by Julian Zhu wrote in a report. “Furthermore, they could also force steel traders (who rely heavily on bank financing) to liquidate their inventories, driving spot/futures steel prices lower, and thus hurting steel stocks’ performances.”
Baoshan Iron & Steel Co., the listed unit of China’s second-biggest steelmaker, slipped 0.3 percent to 6.44 yuan. Hebei Iron & Steel Co., the listed unit of China’s biggest steelmaker, lost 0.5 percent to 3.76 yuan.

‘Hot Money’
China’s currency regulator said yesterday it will continue to crack down on “hot money” inflows and step up monitoring of cross-border capital flows this year.
Separately, the central bank will manage liquidity in the banking system, guide steady growth of loans and enhance currency flexibility, the People’s Bank of China said in a statement yesterday.
Ping An has no plan to conduct any re-financing exercise in the A-share market, said the company in a statement last night.
Ping An Insurance rebounded 0.7 percent to 52.97 yuan after slumping 7.6 percent over the past two days. Citic Securities Co. said yesterday in a note the company may need to raise up to 40 billion yuan ($6 billion). Reports on the company’s re-financing exercise are “ungrounded,” Ping An said in the statement. The operation condition of the company is “normal with a stable financial status,” it said.
--Zhang Shidong. Editors: Allen Wan, Richard Frost

20110107 0911 Global Market Related News.

Firmer dollar weighs on US wheat, corn
MANILA, Jan 7 (Reuters) - U.S. corn and wheat futures  retreated for a second straight session as a  stronger dollar blunted a rally at the start of the year, with  corn on track to post its first weekly drop since November.
"The main influence we're looking at in terms of this  morning's trade remains the currency market and the focus on  the payrolls data," said Luke Mathews, commodity strategist at  Commonwealth Bank of Australia. 

Gold steady ahead of US payrolls data; dollar weighs
SINGAPORE, Jan 7 (Reuters) - Spot gold hovered around  $1,370, as investors wait for a key U.S. employment  report due later in the day for clues on the health of the  economy, as the dollar held firm.
"If we see a weaker number, it would be negative for the  dollar and positive for gold. Unless the number is much  stronger than expected, we probably won't see much move in  gold prices."

Barcap raises gold forecast on safe-haven buying
NEW YORK, Jan 6 (Reuters) - The price of gold will average nearly $1,500 an ounce this year as investors keep buying the metal as a safe haven on bullish factors including low interest rates, currency weakness and inflation fears, Barclays Capital said on Thursday.
Barcap raised its 2011 forecast to $1,495 an ounce with a range between $1,300 and $1,620 an ounce. In November, the bank had a forecast of $1,445 for this year.

Euro falls, dollar up as US jobs data looms
HONG KONG, Jan 7 (Reuters) - The euro fell to a near  four-month low against the dollar while Asian stocks  eased as investors awaited U.S. payroll data for more evidence  of a stronger U.S. economic recovery.
"The much stronger than anticipated ADP outcome, alongside  the nascent wave of optimism on the U.S. economy, appears to  have fed expectations for a much higher payrolls reading  today," said forex analysts at Citigroup in a note.  

OIL: Oil drops 2 pct as dollar rises; awaits jobs data
NEW YORK, Jan 7 (Reuters) - Oil prices tumbled more than 2 percent on Thursday to below $89 a barrel as a stronger dollar and weaker U.S. equities deterred buyers.
"An influx of Canadian crude is finding its way into the Cushing region and is likely to translate to a record supply at the futures delivery point with next week's data release," said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois.

NATURAL GAS: Natural gas ends down despite runup after EIA data
NEW YORK, Jan 6 (Reuters) - Front-month U.S. natural gas futures ended slightly lower on Thursday as some moderation in the U.S. weather outlook for late next week offset early buying after a supportive weekly government inventory report.
"The (EIA storage) report was a little better than expected, but (prices) didn't stay up for long. The market is struggling here," a Chicago-based analyst said, noting weather forecasts for late next week seemed to moderate a bit.

COMMODITIES: Markets end down; investors await US jobs data
NEW YORK, Jan 6 (Reuters) - Commodities fell on Thursday, with oil, copper and corn ending down at least 2 percent, as investors waited to see if the U.S. government will confirm job gains shown in a private report that boosted commodities the previous session.
"Markets in our view are looking for a very strong confirmation of the labor market rebound," said Zach Pandl, economist at Nomura Securities International.

GLOBAL MARETS: Dollar rises, stocks slip before US jobs data
NEW YORK, Jan 6 (Reuters) - The euro fell to a five-week low against the dollar on Thursday on revived worries about the euro zone's sovereign debt crisis, while stocks eased on softer retail sales data before a U.S. employment report expected to give direction to markets.
"The market has just been on a tear ... and a lot of investors are probably sitting on their hands waiting for the (jobs) report tomorrow," said Don Wordell, portfolio manager of RidgeWorth MidCap Value Fund in Orlando, Florida.

China power sector to boom as oil sector goes slower
BEIJING, Jan 6 (Reuters) - China unveiled a raft of targets for its energy and power sectors on Thursday, revealing a plan for a rapid increase in power generation but a much slower rise in the country's oil refining capacity over the next five years.
China, already the world's top energy user, faces the challenge of keeping its growing economy fuelled while cutting back on its staple fuel, cheap but dirty coa0l.

Brent oil lures some big investors from US crude
LONDON, Jan 6 (Reuters) - Strength in price, trading volumes and market structure of Brent crude has helped to lure some of the big investment money that has typically favoured U.S. oil futures -- a trend that is likely to gather momentum.
For decades, those who prefer Brent  have based their arguments on its usefulness as a benchmark for crude sales in Europe, the Middle East, Africa and Asia -- encompassing major exporters and the fast-growing Chinese and Indian markets.

Oil price volatility to increase in 2011-HSH Nordbank
SINGAPORE, Jan 6 (Reuters) - Oil price volatility will  increase in 2011 because of uncertainty about the pace of  economic recovery in OECD economies, says HSH Nordbank, the  most accurate forecaster among private institutions last year.
U.S. crude will average $90 a barrel this year, about $10  more than last year and the second-highest annual figure on  record, driven by strong demand from Asia, said Sintje Diek,  oil analyst at the German bank. 

India Food Prices Continue Sharp Rise; Rate Increase Likely (Source: CME)
Food prices in India are continuing their sharp rise, increasing concerns among economists about a prolonged spell of high prices and adding pressure to the central bank to raise interest rates later this month. The Reserve Bank of India next meets on Jan. 25 to consider an interest rate rise after pushing up rates six times in 2010--one of the most aggressive tightenings of any central bank. But calls for a further move keep coming, most recently with the International Monetary Fund saying in a report released Thursday that rates need to be higher to curb inflation. India was one of the world's best-performing economies in 2010 and is being looked to as an engine of recovery for the global economy as it tries to shake off the impact of the financial crisis. The IMF predicts the Indian economy will grow 8.75% in the year ending March 31 and 8% in the following 12 months, driven by high consumer demand and strong industrial growth. But rising inflation is an increasing threat to that rosy picture.
The central bank will need to walk a fine line, however, since liquidity within the bank system is tight and further rate hikes could exacerbate that problem, economists said. Data from the Ministry of Commerce and Industry showed that the wholesale price index for food articles rose 2.5% in the week ended Dec. 25 from the previous week. The year-on-year inflation rate for food surged to 18.32% from 14.44% the week before. It was the fifth straight week of rising food prices, which have been hovering at elevated levels in recent months. The rise is mainly due to higher vegetable prices, particularly onions, after unseasonal rains in some parts of the country damaged crops, significantly squeezing market supplies. Heightened demand from consumers who have seen their incomes rise also is playing a part as is the government's failure to remove key blockages in the supply chain that prevent the increased demand from being met.
According to a government statement, Finance Minister Pranab Mukherjee has urged provinces to ensure supply bottlenecks are removed. The government already has banned exports of onions--a politically sensitive staple given its ubiquity in Indian cuisine. It also removed the import duty and directed state-run cooperatives to sell the vegetable at subsidized prices in local markets. But onion prices continue to rise, up 82% from a year earlier and there is little sign of a marked decline anytime soon. Indeed Pakistan, which had been exporting onions to India, banned their export by land--the only cost-effective route--because the trade was tightening supplies in Pakistan, which also has high food inflation. Anand Sharma, India's trade minister, described Pakistan's decision as a "setback."

World Bank Urges G20 Action To Stabilize Food Prices (Source: CME)
With rising food prices re-emerging as a threat to global growth and stability, the Group of 20 industrial and developing nations should prioritize the provision of food for the poor, World Bank President Robert Zoellick says. In an opinion piece in the Financial Times, Zoellick sets out nine action points to ensure the poor have access to food. "The answer to food price volatility is not to prosecute or block markets, but to use them better," he writes. French President Nicholas Sarkozy has identified food price volatility as a priority for his country as it takes the presidency of the G20 in 2011. Poor weather conditions in major exporting countries have significantly curtailed harvests and expectations. Food prices hit a record high in December, exceeding levels that prompted riots around the world in 2008, the United Nations food agency said. Zoellick called for more efforts to understand the relationship between international prices and local prices in poor countries.
And he said food aid should be exempted from export bans. In Cambodia, the local price of rice has risen by a quarter since mid-2009, while international prices have fallen 15%.

Food Costs Give Policymakers Challenge To Chew On (Source: CME)
Central bankers worldwide are focusing on inflation--but hoping for different outcomes. Central banks, especially in Asia, want to bring down inflation by raising rates or controlling capital flows. Meanwhile, the Federal Reserve Board is worried that U.S. inflation is too low. Fed officials are working to increase economic activity to both generate jobs and lift pricing power. A key reason for the varying views is that central banks in emerging markets have to consider food prices when thinking about inflation. And lately, food prices have been on a tear. The monthly food price index compiled by the United Nations Food and Agriculture Organization increased for the six consecutive month in December, rising to a record 214.7. The index measures export prices for 50 food commodities. Residents in emerging nations spend from one-third to as much as one-half of their incomes on food.
So the spike in food costs translates quickly into overall higher inflation, putting pressure on central banks to reverse price trends. Policymakers and government officials also have to consider that higher food costs have the potential to cause social unrest as occurred in 2008. In contrast, food and beverages account for only 16% of the U.S. consumer price index, and policymakers here tend to ignore food (and fuel) when thinking about inflation pressures. That's in part because swings in food prices say more about weather than about underlying economic fundamentals. Indeed, the recent jump in global food prices is the result of droughts or flooding in agriculture-exporting nations. Central bankers with differing goals usually could achieve their respective ends through exchange rates. Inflation-fighting central banks would raise rates, which lifted their currencies to bring down import prices.
Meanwhile, the Fed's accommodative policy--whether intentional or not--would tend to exert downward pressure on th e dollar. A cheaper dollar would raise U.S. import prices, ultimately pushing up the core CPI. But as with so many instances in this business cycle, the usual is no longer the norm. Emerging nations that depend on exports to propel growth do not want their currencies to strengthen in the face of tighter monetary policy. That's especially true for those competing about China that closely manages its own exchange rate. "For many [emerging-market] countries, the stronger currency that typically goes hand in hand with the start of the tightening cycle would help limit inflation pressures, but the default setting for EM policymakers remains weaker currencies, not stronger," said Win Thin, global head of emerging markets strategy at Brown Brothers Harriman. Central bankers pushed back when the Fed announced its second round of quantitative easing this fall because of QE2's potential drag on the dollar.
Global policymakers could continue to protest in 2011 if inflation worsens in their countries. Just as many indicators suggest the U.S. recovery is on stronger footing, potential skirmishes among policymakers add a new risk to the outlook--one that will play out in the financial markets, especially in currencies.

GLOBAL ECONOMY-U.S. economy picking up; European growth mixed
NEW YORK/LONDON, Jan 5 (Reuters) - The U.S. services sector grew last month at its quickest pace since mid-2006 and private-sector hiring was triple economists' forecasts, though recovery across Europe remained mixed.
Chinese service sector firms also continued to grow in December even as the government announced a series of measures to tamp down rising inflation.

China's growth-crazed provinces urged to slow down
BEIJING, Jan 6 (Reuters) - Alarmed by the vaulting ambitions of many Chinese provinces to grow at all costs, China's top economic chief is pleading with officials to calm down and spare a thought for the environment.
Zhang Ping, who heads China's National Development and Reform Commission, the central economic planning agency, said only five or six of China's 30 provinces are targeting annual economic growth of 8 or 9 percent.

PRECIOUS-Gold slips as upbeat data lifts appetite for risk
LONDON, Jan 6 (Reuters) - Gold prices slipped in Europe on Thursday for a fourth successive session as the dollar firmed versus the euro and risk appetite improved after a raft of better-than-expected U.S. data.
Spot gold  was bid at $1,376.60 an ounce at 0954 GMT, against $1,377.65 late in New York on Wednesday. U.S. gold futures for February delivery  fell $3.10 to $1,376.60.

FOREX-Dollar consolidates gains as mkt awaits U.S. jobs
LONDON, Jan 6 (Reuters) - The dollar steadied on Thursday after surging the previous day on strong U.S. private sector jobs data, but investors were reluctant to chase the greenback higher ahead of Friday's payrolls numbers.
A string of robust U.S. data have driven the dollar higher on expectations that the world's largest economy would recovery faster than other major economies.

US wheat, corn retreat after surge; rally seen overdone
MANILA, Jan 6 (Reuters) - U.S. wheat and corn futures  slipped after sharp gains in the previous session  spurred by worries over global food supplies shrinking on  unfavourable weather conditions among major producers.  "I could not for the life of me understand why there was a  rally last night," said Ole Houe, senior manager at FCStone  Australia.

U.S. recovery hopes drive developed stocks
LONDON, Jan 6 (Reuters) - Developed market stocks climbed on hopes for renewed U.S. economic growth, although the dollar and emerging markets steadied, unwilling to push a rally further ahead of more data on Friday. "The data that we have seen up to November has been pretty solid but one thing that has been lagging is the employment market in the U.S. and there is a feeling that to really underpin the recovery, the job market needs to turnaround," said Giles Watts, head of equities at City Index.

20110107 0910 Soy Oil & Palm Oil Related News.

Soy product futures backpedaled, stumbling in unison with weakness in soybean futures. An absence of fresh supportive news opened the door for prices to retreat, with improved crop weather in Argentina, lower-than-expected weekly export sales and sharp declines in crude oil attracting sellers, analysts said. CBOT March soyoil ended 0.35c or 0.6% lower at 57.41 cents per pound, and March soymeal traded $3.90 or 1% lower at $369.10 a short ton. (Source: CME)

Argentina's 2010-11 Corn Output Seen At 20.35M Tons - Exchange (Source : CME)
Argentina's 2010-2011 corn production is set to total 20.35 million metric tons, the Buenos Aires Cereals Exchange said in its weekly crop report. The forecast is the first from the exchange, and is significantly lower than other private forecasts made earlier in the season. Hot, dry weather through December affected yields significantly, although showers in recent days have helped boost the crop's prospects, the exchange said. Corn planting is about 90% complete in Argentina, the world's second leading corn exporter.
The exchange's soybean forecast was held at 18.5 million hectares, with almost 90% of the planting complete. The soy crop also felt the effects of hot, dry weather in December, with late-seeded soy developing slowly. However, recent showers and expectations for more rain in the coming days are improving prospects, the exchange said. Argentina is third in the world for soybean exports and leads soymeal and soyoil shipments. The wheat forecast was held at 14.5 million tons, with almost three-quarters of the harvest complete.
The sunflower-seed forecast was also held at 2.7 million tons.

Palm oil bounces on erratic weather curbing output
KUALA LUMPUR, Jan 6 (Reuters) - Malaysian crude palm oil  recovered driven by erratic weather slowing  production in major vegetable oil exporting regions at a time  of growing global demand.  "The erratic weather shows no sign of easing, we may  extend this weather-driven market well beyond the first  quarter," said a trader with a foreign

Brazil 10/11 soy crop seen unchanged from Dec-govt
SAO PAULO, Jan 6 (Reuters) - Brazil's 2010/11 soybean crop was estimated at 68.55 million tonnes, unchanged from a forecast given in December, the government's crop supply agency Conab said on Thursday.
Harvesting of the crop will begin in the coming weeks.

Thailand to import palm oil as Asian price fears grow
BANGKOK, Jan 6 (Reuters) - Thailand will import 30,000  tonnes of crude palm oil, the first in three years, because of  a domestic shortage, as other Southeast Asian countries took  action to hold down prices as inflation worries grew.
The phenomenon has revived memories of the jump in food  and commodity prices in 2008 that led to a panic about  supplies and sparked unrest in some countries.

Indonesia extends cooking oil subsidy on inflation concern
JAKARTA, Jan 5 (Reuters) - Indonesia will continue to  subsidise a 10 percent value added tax imposed on palm  oil-based cooking oil this year to stabilise prices as the  country seeks to control accelerating inflation,  the trade  minister said on Wednesday.
Indonesia's annual inflation picked up in December to a  20-month high of nearly 7 percent, above the central bank's  2010-end target range of 4-6 percent, leading analysts to call  for rate hikes to head off inflationary pressures.

20110107 0847 FCPO EOD Daily Chart Study. (06 Jan 2011)

FCPO closed : 3864, changed : +56 points, volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakenning, buyer reducing exposure.
Support : 3850, 3830, 3800, 3770 level.
Resistance : 3870, 3920, 4000 level.
Comment :
Overnight rally on soy oil and crude oil futures price plus flood factor triggered FCPO to rebound higher recorded gain after yesterday severe fall with slightly lower volume traded after market opened gap up and tested higher follow by profit taking activities pressed price to closed off the high.
Daily chart formed a doji down bar candle position near upper Bollinger band resistant level with the reading suggesting a correction range bound upside biased market development.
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.

20110107 0834 FKLI EOD Daily Chart Study. (06 Jan 2010)

FKLI closed : 1568, changed : + 7 points,  volume : lower.
Bollinger band reading : upside biased with possible pullback.
MACD Histrogram : rising, buyer rules.
Support : 1560, 1550, 1540 level.
Resistance : 1570, 1580, 1590 level.
Comment :
KLI continue to trade firmer recorded gain with lower volume participation on par with cash market.
Daily chart formed a doji bar candle closed above upper Bollinger band level suggesting a pullback correction is likely to take place in the near term with the underlying reading remained upside biased.
When to buy : buy at support, weakness or break up with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.