Wednesday, March 2, 2011

20110302 1836 FCPO EOD Daily Chart Study.

FCPO closed : 3590, changed : +44 points, volume : higher.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : recovering, seller taking profit.
Support : 3550, 3500, 3470, 3450 level.
Resistance : 3620, 3650, 3700 level.
Comment :
FCPO comtinue to trade firmer closed recorded gain with higher vol exchanged as seller profit taking activities still take place while soy oil and crude oil price trading higher.
Daily chart formed an up doji bar candle with longer lower shadow heading toward middle Boilligeer band level after market opened little higher, tested lower and recovered upward to closed higher.
Chart reading still suggesting a correction range bound downside biased market development with the current movement likely to test higher resistance level.
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.

20110302 1818 FKLI EOD Daily Chart Study.

FKLI closed : 1492.5 changed : -9.5 points,  volume : higher.
Bollinger band reading : corrention range bound downside biased.
MACD Histrogram : recovering, seller reducing position.
Support : 1485, 1480, 1470 level.
Resistance : 1500, 1515, 1530 level.
Comment :
FKLI closed recorded loss with higher volume transacted doing 6.5 points discount compare to cash market after overnight Dow Jones market closed lower plus a getting worst Libya and middle east condition pressuring a higher crude oil prices while regional market closed lower.
Daily chart formed a down doji bar candle with long lower shadow after market opened gap down tested lower level and recovered to close off the low positioned in the middle between lower and middle Bollinger band.
Reading wise suggesting a correction range bound downside biased market development testing support and resistance level with a potential MACD Histrogram positive divergence forming.
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.

20110302 1001 Global Economic Related News.

E.U: February inflation quickens to 2.4% YoY, increasing pressure on ECB to raise interest rates later this year. Inflation in the 17-nation euro region quickened from 2.3% YoY in January. That's the fastest since October 2008 and the third straight month inflation has exceeded the ECB's 2% limit. (Source: Bloomberg)

E.U: February manufacturing growth accelerated to the fastest pace in more than 10 years. A gauge of manufacturing in the euro region rose to 59 last month from 57.3 in January, London-based Markit Economics said, confirming a Feb. 21 estimate. That's the highest since June 2000. A reading above 50 indicates expansion. (Source: Bloomberg)

U.K: Index of manufacturing stayed at a record high in February. A gauge based on a survey of companies was at 61.5, matching the result for January. (Source: Bloomberg)

China: Manufacturing expanded at the slowest pace in six months as higher interest rates and lending curbs aimed at containing inflation damped demand. The Purchasing Managers' Index fell to 52.2 from 52.9 in January, the third monthly decline. The gauge of input prices climbed to 70.1, the highest level since November. (Source: Bloomberg)

S. Korea: February exports rose at the slowest pace in five months. Overseas shipments increased 17.9% YoY after gaining a revised 45.4% YoY in January. Imports climbed 16.3% YoY, leaving a trade surplus of USD2.8b. (Source: Bloomberg)

India: February manufacturing grew at the fastest pace in three months. The purchasing managers' index rose to 57.9 in February from 56.8 in January, HSBC Holdings Plc and Markit Economics said in an email. Data above 50 indicates expansion. (Source: Bloomberg)

Indonesia: Inflation slowed for the first time in four months in February. Consumer prices in Southeast Asia's biggest economy rose 6.84% YoY last month after gaining 7.02% YoY in the previous month, the Central Bureau of Statistics said in Jakarta. (Source: Bloomberg)

Thailand: Inflation slowed in February as government subsidies helped counter an increase in food and fuel costs. An index of consumer prices increased 2.87% YoY in February compared to a 3.03% YoY gain in January. (Source: Bloomberg)

Vietnam: Ordered curbs on lending and urged less use of USD and gold as it strives to tame inflation and stabilize the economy. Commercial banks must limit credit to "non-production businesses" such as those investing in the stock and property markets to 22% of total loans by June 30 and 16% by Dec. 31, the State Bank of Vietnam said. The central bank will double the reserve ratio requirements for those that fail to meet the deadline, the statement said. (Source: Bloomberg)

Australia: The Reserve Bank of Australia left its benchmark interest rate at the highest level in the developed world, saying a stronger currency and an earlier decline in wage growth are helping to contain inflation. Governor Glenn Stevens held the overnight cash rate target at 4.75%. The central bank expects inflation to stay within its target range of 2% to 3% over the next year. (Source: Bloomberg)

China: Manufacturing slowed in February
China’s manufacturing expanded at the slowest pace in six months as higher interest rates and lending curbs aimed at containing inflation dampened demand. The Purchasing Managers’ Index fell to 52.2 last month from 52.9 in January, the China Federation of Logistics and Purchasing said on its website yesterday, the third monthly decline. The gauge of input prices climbed to 70.1, the highest level since November. (StarBiz)

South Korea: Inflation rises to two-year high, breaching target
South Korean inflation rose to a two-year high in February, breaching the central bank’s 4% ceiling for a second month and bolstering the case for an interest rate increase as early as next week. The consumer-price index rose 4.5% from a year earlier, after gaining 4.1% in January, Statistics Korea said today in Gwacheon, south of Seoul. That compares with the median estimate of 4.3% in a Bloomberg News survey of 11 economists. Prices rose 0.8% from the previous month.(Bloomberg)

Vietnam: Orders curbs on lending, seeks less use of gold
Vietnam ordered curbs on lending and urged less use of USD and gold as it strives to tame inflation and stabilize the economy. Commercial banks must limit credit to “non-production businesses” to 22 % of total loans by June 30 and 16% by year’s end, the State Bank of Vietnam said in a statement on its website today. The central bank would double the reserve ratio requirement of those that fail to meet the deadline, the statement said. Banks must also control the use of gold and dollars in deposits and lending, and the government aims to abolish unofficial gold bullion trading eventually, according to the statement.(Bloomberg)

US: Construction spending decreases on commercial slump
Construction spending in the US fell more than forecast in January, paced by the biggest slump in commercial projects in 17 years, showing the industry will continue to be a laggard in the economic recovery. The 0.7% drop brought the value of all projects down to a USD791.8bn annual rate, the lowest since August, Commerce Department figures showed today in Washington. Outlays on private non-residential works dropped 6.9%, the most since January 1994, which may in part reflect the influence of winter storms.(Bloomberg)

US: Manufacturing expands by most since 2004
Manufacturing in the US grew in February at the fastest pace in almost seven years, driven by gains in orders, employment and exports that signal factories will continue to propel the expansion. The Institute for Supply Management’s factory index increased to 61.4, exceeding the median forecast of economists surveyed by Bloomberg News and the highest level since May 2004, the Tempe, Arizona-based group said today. Readings greater than 50 signal growth. Compared with similar measures released today in Europe and Asia, the data put the US at the forefront of the global manufacturing rebound.(Bloomberg)

20110302 1000 Malaysia Corporate Related News.

Tan Chong: Sets up subsidiary in Laos. Tan Chong Motor Holdings Bhd has set up a wholly-owned subsidiary in Laos, Tan Chong Motorcycles (Laos) Co Ltd (TC Motorcycles), to undertake the assembly, sale and distribution of motorcycles. The Laotian firm would start operations in early 2012. TC Motorcycles was issued a foreign investment license and an enterprise registration license with a total capital of USD1.5m (RM4.6m). (Source: Bursa Malaysia)

Axiata: Renews Jamaludin's contract as president & group CEO for another three years. Axiata Group Bhd has renewed the contract of its president and group CEO, Datuk Seri Jamaludin Ibrahim, for another three years. Under Jamaludin's stewardship, Axiata's revenue has grew by about 40% and profit almost quadrupled. (Source: The Star)

Guan Chong: Sets RM120m for Batam plant. Guan Chong Bhd is allocating some RM120m to build its cocoa-grinding plant in Batam, Indonesia. The plant, with an annual capacity of 120,000t, will more than double the company's current grinding capacity to 200,000t from 80,000t. (Source: The Edge Financial Daily)

Regulation: Capital Market Masterplan to be launched by 1H11. The Securities Commission (SC) expects the new five-year Corporate Governance Blueprint and a second 10-year Capital Market Masterplan (CMP2) which is in the final stages of development, to be launched by the first half of this year. Both documents were intended to articulate Malaysia's strategies and agenda for the development and regulation of the capital market over the next decade. (Source: The Edge Financial Daily)

Construction: Bill to tackle building woes. The construction industry may soon see a major change in the way non-payment of progress billings that often plague the industry may be reduced in the future when a Bill to regulate the payment is passed by the Parliament. The Bill, which is currently being tweaked in the Attorney-General's chamber, would facilitate regular and timely progress payment through a speedy resolution via adjudication. (Source: The Edge Financial Daily)     

Proton inks MoU with Nissan
National carmaker Proton Holdings has inked a memorandum of understanding (MoU) with Japan automaker Nissan Motor Co Ltd for feasibility studies to be conducted on specific areas of cooperation between the carmakers, including the potential use of Nissan’s platform and power train. The duration of the feasibility studies will start from yesterday to 30 April 2011, or upon execution of a legally binding agreement, whichever comes earlier, unless extended by mutual written agreement of the parties. (MalaysianReserve)

Tan Chong sets up subsidiary in Laos
Tan Chong Motor Holdings has set up a wholly-owned subsidiary in Laos, Tan Chong Motorcycles (Laos) Co Ltd (TC Motorcycles), to undertake the assembly, sale and distribution of motorcycles. The Laotian firm would start operations in early 2012. TC Motorcycles was issued a foreign investment licence and an enterprise registration licence with a total capital of USD1.5m (RM4.56m), it added. (BT)

Alam Maritim secures RM70m contract extension
Alam Maritim Resources has secured a contract extension for the provision of one unit accommodation work worth RM70.52m. The extension won by its wholly owned subsidiary, Alam Maritim (M) SB, is for a period of 21 months starting from 12 April 2011. The contract is expected to contribute positively to the earnings and net tangible assets of the group for the FYE 31 Dec 2011 and beyond. (MalaysianReserve)

RHB Cap to undertake dividend divestment
RHB Capital has proposed to undertake a dividend divestment plan that provides shareholders the option to elect to reinvest their cash dividend(s) declared by the financial institution in new RHB Capital Ordinary share of RM1 each. The reinvestment of dividends by shareholders in new shares will enlarge the company’s share capital base and strengthen its capital position. (MalaysianReserve)

Guan Chong starts grinding cocoa in Indonesia
Malaysia's largest cocoa processor Guan Chong has commissioned its cocoa grinding plant in Batam, Indonesia, which is expected to improve earnings significantly. The plant boasts of an initial annual grinding capacity of 60,000 tonnes, increasing the group's total production by 75% to 140,000 tonnes a year. This makes Guan Chong one of the largest cocoa processors in Asia. The group's existing 80,000-tonne plant in Pasir Gudang, Johor is almost fully utilised due to a rise in global demand for its cocoa ingredients, it added. The group had shipped out about 200 tonnes of cocoa products just two weeks into production at its Batam plant. With a grinding plant in Indonesia, the group can also benefit from processing zero-tariff raw materials. The plant in Pasir Gudang processes cocoa beans mainly from Indonesia, which recently started to impose export tax of up to 15% on Indonesia-produced cocoa beans on a scheduler basis. (BT)

Berjaya Food IPO oversubscribed
Berjaya Food, en route to listing on Bursa Malaysia’s Main Market, has received an oversubscription rate of 14.48 times for its seven million shares made available to the public. A total of 4,942 applications for 109.4m shares with a total value of RM55.8m were received from the public, Berjaya Food said in a statement yesterday. Another 23.9m shares reserved for private placement and 4.9m shares for subscriptions by eligible directors, employees and business associated with the Berjaya FoodGroup were also fully subscribed, it added. Berjaya Food’s initial public offering involved an offer for sale of 35.8m shares at an offer price of 51 sen per share. (BT)

20110302 0929 Global Market Related News.

Crude above $100 on lower U.S. stocks, Mideast worries
SINGAPORE, March 2 (Reuters) - U.S. crude futures rose after a surprise fall in crude inventories in the United States, while tension in Libya ratcheted up, spurring fears that other oil producers in the Middle East and North Africa may face similar revolts.
Libya could descend into civil war unless Muammar Gaddafi quits, the United States said on Tuesday, its demand for his departure intensifying pressure on the longtime leader after news of Western military preparations.

Wheat falls for 2nd day on crop weather, soy firm
SINGAPORE, March 2 (Reuters) - U.S. wheat futures lost more ground on Wednesday, falling around half a percent as rains in China's wheat belt and forecasts for much-needed moisture in the U.S. Plains continued to weigh on the market.
"They are forecasting rains for China and the U.S. wheat areas which should help the crops," said Adam Davis, a senior grains trader at Melbourne-based Merricks Capital.

Climate change to drive up food prices - expert
CANBERRA, March 2 (Reuters) - Global food prices are likely to keep rising as production struggles to match demand and extreme weather events become more frequent, a climate-change advisor to the Australian government said on Wednesday.
Ross Garnaut told an agricultural outlook conference that more severe weather events were inevitable, given climate change was "already in the system".

Stocks tumble as oil rises on Mideast worries
HONG KONG, March 2 (Reuters) - Oil rose towards a 2-1/2 year high and stocks fell on Wednesday as investors shunned risky assets on concern that escalating tension in Libya would spread in the Middle East and disrupt fuel supplies.
"The market is volatile as oil's persisting gains and civil unrest in the Middle East is negatively affecting investor sentiment," said Lee Sun-yeb, a market analyst at Shinhan Investment Corp.

Oil : Crude above $100 on lower U.S. stocks, Mideast worries
SINGAPORE, March 2 (Reuters) - U.S. crude futures rose after a surprise fall in crude inventories in the United States, while tension in Libya ratcheted up, spurring fears that other oil producers in the Middle East and North Africa may face similar revolts.
Libya could descend into civil war unless Muammar Gaddafi quits, the United States said on Tuesday, its demand for his departure intensifying pressure on the longtime leader after news of Western military preparations.

COMMODITIES: Oil, gold gain on Middle East tension
NEW YORK, March 1 (Reuters) - Brent crude oil futures finished Tuesday at their highest level in 2-1/2 years, U.S. crude rose over 2 percent, and investors quest for safety sent gold to an all-time high, on fears political turmoil in Libya would spread to other oil producing countries.
"The Saudis had seemed to be walking the tightrope and avoiding problems, but the cleric story had people worried that it signaled problems there," said Robert Yawger, senior vice president, energy futures at MF Global in New York.

GLOBAL MARKETS: Stocks slide as oil marches higher
HONG KONG, March 2 (Reuters) - Oil vaulted over $116 per barrel on Wednesday as concerns rose that escalating tensions in Libya would spread in the Middle East and disrupt fuel supplies.
"Volatility will rule until the situation in the Middle East shows signs of easing," said Kim Young-june, a market analyst at SK Securities.

Argentina Should Limit Foreigners' Farmland Purchases - Minister (Source: CME)
Pressure is building in Argentina to limit the amount of land that foreigners can buy as record prices for grain and derivative products fuel concerns that deep-pocketed overseas investors might end up controlling a significant percentage of the country's farmland. Last year, congressmen from a across Argentina's political spectrum sponsored about 12 different bills that would have put limits on foreign land ownership. While those bills are stalled in the agriculture commission of Argentina's lower house, the administration of President Cristina Fernandez looks set to weigh in on the issue. "[Fernandez] believes that the legislature needs to debate the protection of the country's primary non-renewable strategic resource--the land," Agriculture Minister Julian Dominguez said in a speech on Sunday. The land "has to stay in Argentine hands," Dominguez said.
Agriculture exports were largely responsible for Argentina's whopping $12.06 billion trade surplus last year, while taxes on farm exports accounted for a significant percentage of the federal government's tax revenue. Argentina is the world leader in soymeal and soyoil exports, ranks No. 2 in corn exports, and third in soybeans. As global commodity prices soar, investors have increasingly looked to the fertile farmlands of Argentina and Brazil for investment opportunities. That has helped fuel surging land prices in recent years. At the end of 2010, prime farmland in Argentina's Buenos Aires Province was selling for $15,000 a hectare (2.47 acres), according to local daily La Nacion. That is about double the price in 2007 and over five times prices in 2002 when the country was in the midst of an economic crisis. Argentina's northern neighbor, Brazil, has already taken steps to protect its national sovereignty over farmland.
Last year, Brazil's former President Luiz Inacio Lula da Silva slapped limits on foreign ownership. Land purchases involving a foreign investor or a local company that is majority owned by foreigners are now reviewed on a case by case basis. Certain limits will apply depending on the geographic area of the purchase. A similar law is needed in Argentina, where about 7%, or 20 million hectares, of the country's productive farmland is in the hands of foreigners already, said Omar Principe, who heads the land commission at the Argentine Agrarian Federation. The association, know as the FAA, is one of the country's leading farm groups and represents small-scale farmers.

Higher Crude Oil Prices Could Send More US Ethanol Overseas (Source: CME)
A spike in crude oil prices is boosting already record demand for ethanol as the corn-based fuel additive increasingly becomes cheaper than gasoline. Yet U.S. ethanol producers have all but saturated the domestic market. Ethanol exports, already at record highs, are likely to be the main beneficiary as oil prices outpace corn costs, with producers and refiners expecting foreign shipments to increase. Ethanol for March delivery recently traded at $2.56 a gallon on the Chicago Board of Trade, about 33 cents below reformulated oxygenated blendstock, or RBOB, a common gasoline blend traded on the New York Mercantile Exchange. Ethanol is now at discounts to RBOB not seen since early January. Yet domestic gas stations currently are unable to increase the amount of ethanol in their fuel mix--most current infrastructure doesn't allow ethanol blends higher than E10, or 10% ethanol, 90% gasoline.
"Despite the favorable blending economics, there really isn't much (U.S.) market opportunity left," said Nathan Schock, director of public relations for POET, the world's largest ethanol producer. Nearly all stations that can dispense E10 are selling the blend. Older stations unable to dispense ethanol aren't expected to change to expand the market. Because of that, there is little room to add more E10 to the nation's fuel supply, said Prentiss Searles, marketing issues manager with industry association American Petroleum Institute. "The majority of the fuel in the system is limited to E10, so refiners are limited as to what they can do," Searles said. Ethanol producers have long pushed automakers and refiners to accept E15 fuel, a blend consisting of 15% ethanol. Although the U.S. Environmental Protection Agency has blessed such a move, E15 has faced resistance from automakers worried about what the increased blend could do to engines and refiners worried about litigation if the blend damages vehicles.
That's left the introduction of E15 in the U.S. in a holding pattern for now. With the domestic market saturated, more of the biofuel will be available on the export market at prices low enough to attract foreign interest. "If U.S. ethanol remains the most cost-effective, we could continue to see very strong exports," said Matt Hartwig, spokesman for ethanol trade group Renewable Fuels Association.  It estimates U.S. ethanol exports at 350 million gallons for 2010, more than three times the amount shipped in 2009, but still only a sliver of the more than 13 billion gallons produced in the U.S. last year. The U.S. Department of Agriculture isn't projecting a jump in ethanol exports this year. Its forecast, however, depends on sugar prices easing, making ethanol produced from sugar cane more competitive on the world market, the agency said last week.

World factory input costs rising sharply
LONDON/BEIJING, March 1 (Reuters) - Factory input costs leapt across the globe in February, the latest sign of rising inflationary pressures, while euro zone manufacturing grew at its fastest in nearly 10 years, surveys showed on Tuesday.
British manufacturing also grew strongly, at its fastest pace in nearly two decades, and Indian factory growth accelerated. But in China, where the authorities have raised rates and bank reserve requirements multiple times since last year, factory growth slipped to its slowest pace in six months.

U.S. consumer spending slows, factories roar
WASHINGTON, Feb 28 (Reuters) - U.S. consumer spending barely edged up in January as households took advantage of tax cuts to rebuild their savings, suggesting spending would offer only a modest lift to the recovery in the first quarter.
Other data Monday painted a bullish picture of the manufacturing sector, with a gauge of factory activity in the country's Midwest hitting a 22-1/2 year high this month, which should help the economy weather rising oil prices and maintain its steady growth momentum.

Hher oil unlikely to hurt growth- World Bank
WASHINGTON, Feb 28 (Reuters) - A sustained period of higher oil prices would significantly affect developing economies but is unlikely to derail their strong recovery since the global financial crisis, a senior World bank economist said on Monday.
Andrew Burns, the World Bank's manager of global economics, said a surge in the oil price could dent economic growth in developing countries by somewhere between 0.2 and 0.4 percentage points if it remained at higher levels for a year or longer.

Australia sees commodities prices easing, but boom intact
CANBERRA, March 1 (Reuters) - Australia on Tuesday forecast commodities prices to ease, as miners and farmers boost output, but said demand was still booming and likely to reap a staggering $255 billion in national annual export income.
Australia, the world's third-largest wheat exporter and a top-two exporter of iron ore and coal, is undergoing its biggest trade bonanza in a century due to strong demand from China and India. As a result, investment in new production is soaring.

PRECIOUS-Gold rises as M.East unrest feeds investor fear
LONDON, March 1 (Reuters) - Gold rose for a third day on Tuesday as escalating violence in Libya and unrest spreading across the Middle East offset optimism over stronger U.S. economic data.
The gold price has risen by nearly 8 percent since uprisings in Tunisia and Egypt unleashed a swathe of popular protests across the region, sending the oil price to 2-1/2-year highs and raising concern among investors of the potential impact of soaring energy prices on growth.

FOREX-Dollar index hits 3-1/2 mth low; Bernanke awaited
LONDON, March 1 (Reuters) - The dollar hit its lowest in three-and-a-half months versus a currency basket on Tuesday on the view U.S. monetary policy will remain loose, as the market awaited testimony by Federal Reserve Chairman Ben Bernanke.
With other central banks looking likely to hike interest rates, analysts said the dollar could extend falls if Bernanke stays cautious about the economy and relatively relaxed about inflation at his semi-annual appearance before the Senate Banking Committee starting at 1500 GMT.

Oil rises on supply concerns; world stocks up
LONDON, March 1 (Reuters) - Oil prices rose back above $112 a barrel due to concerns over unrest in the Middle East, though stock markets shrugged off the move, preferring to focus on optimism over the outlook for the U.S. economy.
"It's very important that the U.S. economy is now showing signs of strength ... and forecasts for this year's GDP are starting to exceed 4 percent," said Heino Ruland, strategist at Ruland Research in Frankfurt.

Gold clings to $1,410; ETF holdings to 9-mon low
SINGAPORE, March 1 (Reuters) - Spot gold steadied around $1,410 as escalating unrest in Libya and the Middle East supported safe-haven demand, though holdings in the biggest gold-backed exchange-traded fund fell to the lowest level in more than nine months.
"There has been some scrap selling and liquidation above $1,405," said Peter Fung, head of dealing department at Wing Fung Precious Metals in Hong Kong.

Asia stocks rise, China manufacturing slows
SINGAPORE, March 1 (Reuters) - Asian stocks rose in early trade, tracking U.S. shares which gained on optimistic remarks from influential investor Warren Buffett, while Chinese manufacturing growth slowed to a six-month low.
"Inflation pressures are rising but economic activity is slowing. Slower economic growth is good for cooling inflation," said Wang Hu, economist at Guotai Junan Securities in Shanghai.

20110302 0928 Soy Oil & Palm Oil Related News.

Soy product futures ended higher, supported by fresh speculative buying. Soyoil futures drew added support from firm world vegoil prices, as recent declines in prices attracted fresh buying from Mideast buyers in world vegoil markets, analysts said. CBOT May soyoil ended 0.27 cents or 0.5% higher at 57.60 cents per pound, and May soymeal traded $1.50 or 0.4% higher at $363.40 a short ton. (Source: CME)

Palm oil jumps 2.6 pct as biodiesel appeal grows
KUALA LUMPUR, March 1 (Reuters) - Malaysian palm oil futures jumped as much as 2.6 percent as traders focused on buoyant crude markets setting the stage for growing biodiesel demand. "Funds might be coming in. There is a lot of energy related buying going on in palm oil and other vegetable oil markets," said a trader with a foreign commodities brokerage.

Egypt's palm demand to rise as oilseed output stagnates
KUALA LUMPUR, March 1 (Reuters) - Egypt's palm oil demand will rise by a tenth to about 880,000 tonnes this year, as trading houses shore up supplies at a time of stagnant oilseed output and the country is recovering from political upheaval, a Cairo-based trader said on Tuesday.
Stubbornly high food prices and high unemployment fuelled public anger against the government that eventually ousted Hosni Mubarak as president last month.

Palm may still hit 4,000 rgt despite recent sell-off
KUALA LUMPUR, March 1 (Reuters) - Malaysian palm oil  may still hit 4,000 ringgit a tonne on tight stocks in the immediate term and as competing soyoil  gets increasingly channeled to the biofuel sector, said Prudential Bache Commodities analyst Anne Frick.
A sell-off last week has left palm oil about 12.5 percent below the key 4,000 ringgit($1,311)level, as traders grew concerned over high crude oil prices and the spreading Middle East unrest slowing economic growth.

China sells out 100,101 T rapeseed oil reserves
BEIJING, March 1 (Reuters) - China sold out all the 100,101 tonnes of rapeseed oil offered at state reserve sales on Tuesday. Interests picked up as refineries are taking advantage of cheap prices offered by the government.
The volume brought total sales of government reserves to 873,043 tonnes since October. Before the sales, some traders estimated the government holds about 2 million tonnes of rapeseed oil in state reserves.