Wednesday, March 9, 2011

20110309 1839 FCPO EOD Daily Chart Study.

FCPO closed : 3585, changed : +1 points, volume : lower.
Bollinger band reading : side way range bound downside biased.
MACD Histrogram : turned higher, buyer and seller participate less on the last day of Palm Oil Conference.
Support : 3550, 3500, 3470, 3450 level.
Resistance : 3620, 3650, 3700, 3720 level.
Comment :
FCPO closed 1 tick higher with much lower volume changed hand on the last and crucial day of POC as traders taking their time to digest research presented by industry expert while crude oil and soy oil trading little lower.
Daily chart formed a tiny little doji bar candle after opened 1 tick higher, traded range bound and closed at the day opened price.
Chart reading still suggesting a side way range bound downside biased market development testing support and resistance level with MACD indicator still not able to do a cross up.
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.

20110309 1819 FKLI EOD Daily Chart Study.

FKLI closed : 1520.5 changed : +1 point,  volume : lower.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : rising, buyer holding on.
Support : 1515, 1500, 1485 level.
Resistance : 1530, 1540, 1550, 1580 level.
Comment :
FKLI closed 1 2 tick higher with quiet volume transacted doing about 3 points discount compare to cash market that recorded 6 points gain while regional market closed mostly higher after overnight Dow Jones market closed recorded gain.
Daily chart formed a down bar candle after market opened gap up, edge up a little and slides downward tested support level and closed recovered partially positioned near upper Bollinger band level.
Chart reading turned to suggesting a side way range bound little upside biased market development testing support and 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.

20110309 1215 Global Economic Related News.

China: China may deflect Geithner pressure with smaller trade surplus
China may deflect international pressure for faster RMB appreciation by reporting the nation’s smallest trade surplus in 10 months tomorrow. The excess was USD4.9bn in February, from USD6.5bn a month earlier, according to the median estimate in a Bloomberg News survey of 21 economists. Data for the first two months of the year is typically distorted by the timing of a Lunar New Year holiday. A smaller surplus may support China’s contention that the world’s second-largest economy is moving toward balanced trade as imports climb.(Bloomberg)

China: BRIC miners surpassed by Zhongjin, Yunnan sales
China’s biggest mining companies are selling the most bonds among the largest emerging economies this year, tapping demand from investors attracted by the highest relative yields since 2009. Yunnan Copper Industry Co., China’s third-largest producer, will price RMB1bn (USD152mn) of one-year bonds tomorrow, after Zhongjin Gold Mining Co., the nation’s second- biggest maker of the precious metal, sold 600 million RMB of similar-maturity debt last week at a yield of 4.38%. Mining companies raised RMB16.7bn this year, up from RMB2.8bn a year earlier, data compiled by Bloomberg show.(Bloomberg)

Japan: Debt redemption rush may fuel long-bond rally
Japan will redeem a record amount of government bonds this month, forcing investors to buy longer- term securities to avoid lower interest payments after coupons on some maturities fell by more than half since 2006. About JPY15.6trn (USD190bn) of coupon-bearing government debt will mature in March, the biggest monthly amount since World War II, according to Deutsche Securities Inc. The coupons on the notes coming due are more than twice prevailing levels for similar maturities, so investors need longer-term securities to keep their interest rates the same.

Vietnam: Raises interest rates as dung shifts focus to inflation
Vietnam’s central bank raised a main policy interest rate to 12%, boosting borrowing costs for the third time in as many weeks as the government steps up its fight against inflation. The refinancing rate, one of the main policy tools identified by the State Bank of Vietnam last week, was increased from 11% effective yesterday, according to a statement on the central bank’s website. The bank also lifted the discount rate to 12% from 7%.(Bloomberg)

US: Home sales accelerate as US price decline signals rebound
The third decline in US home prices in three years is driving a pickup in sales as bargain hunters rush to buy before mortgage rates rise, even as values may slump further. Mounting foreclosures pushed the median price for a US existing home to USD158,800 in January, the lowest level since 2002, according to the National Association of Realtors. At the same time, sales climbed 22% from October, the biggest three-month gain since the end of a homebuyer tax credit. (Bloomberg)

US: Confidence at US small companies climbs to three-year high
Confidence among US small companies rose in February to the highest level in three years as hiring and sales expectations increased, a survey showed. The National Federation of Independent Business’s optimism index climbed to 94.5, the highest since the recession began in December 2007, the Washington-based group said today in a statement. The reading compares with the average 100.7 during the previous expansion that started in November 2001. At the same time, earnings expectations remained negative, and fewer businesses said it was a good time to expand. (Bloomberg)

U.K: Housing price gauge rose for a fourth month in February as demand increased and transaction levels improved, the Royal Institution of Chartered Surveyors said. The number of real-estate agents and surveyors saying prices fell exceeded those seeing gains by 26ppts, down from 31 ppts in January, the London-based group said. (Source: Bloomberg)

Germany: Factory orders rose in January on surging domestic demand. Orders, adjusted for seasonal swings and inflation, advanced 2.9% MoM from December, when they fell 3.6% MoM. In the year, orders rose 16% YoY. (Source: Bloomberg)

China: At 60% risk of banking crisis, Fitch gauge signals. China faces a 60% risk of a banking crisis by mid-2013 in the aftermath of record lending and surging property prices, according to a Fitch Ratings gauge. Fitch sees the risk of "holes in bank balance sheets" should a property bubble burst, Richard Fox, a London-based senior director, said in a phone interview on March 4. The risk assessment is from a macro-prudential monitor used by the ratings company. (Source: Bloomberg)

China: More Chinese cities and regions will raise minimum wages this year after six provinces already did so, as labor shortages spread inland, Yin Weimin, Minister of Human Resources and Social Security, said in Beijing. Labor shortages in manufacturing hubs on China's east coast are persisting and spreading to central and western regions as economic growth spurs demand for workers and population growth in rural areas slows, Yin said at a news briefing. The changing mindset of migrants who prefer to find jobs nearer their hometowns is also affecting the supply of labor, he said. (Source: Bloomberg)

Japan: Current account surplus narrowed in January as export growth cooled. The gap shrank 48% YoY the Finance Ministry said in Tokyo. Exports rose 2.9% YoY and imports increased 15.6% YoY. (Source: Bloomberg)

20110309 1214 Malaysia Corporate Related News.

Sime Darby: Emery Oleochemicals to invest RM416m. Prime Minister Datuk Seri Najib Razak announced a RM416.2m investment led by the Emery Oleochemicals Group in three sub-projects to produce bio-lubricants and green polymer additive as well as surfactants for home and personal wellness products. Emery Oleochemicals Group is a 50:50 JV between Sime Darby Plantation and PTT Chemicals of Thailand. (Source: The Edge Financial Daily)

Bursa: Aims to double derivatives trade volume. Bursa Malaysia Derivatives Bhd aims to double its daily trading average to 50,000 contracts over the next three years in line with growing investor interest. The collaboration with US-based CME Group to expand trading of commodity futures, increase the volume of existing products and introduce new products, would drive the market's growth. (Source: Business Times)

REDtone: Upbeat about venture into health care. General Electric Malaysia will collaborate with local partners that include REDtone International Bhd, to develop diagnostic services nexus (DSN), a teleradiology hub that involves RM30m of investment. (Source: The Star)

Infrastructure: McKinsey appointed consultant for MRT. McKinsey & Co has been hired as consultants to carry out the value management study (VMS) on the mass rapid transit (MRT) project. The VMS is an important element in SPAD's plan to ensure that the MRT is carried out in the most cost-efficient way. (Source: The Star)

Plantation: Call to speed up approval of foreign workers for harvest season. The Federal and Sabah state governments have been urged to quickly approve new applications of foreign workers to harvest fresh fruit bunches in the months ahead. This is to enable the industry to achieve the 17.6m tonnes crude palm oil output target this year. The industry will need to hire up to 50,000, or 20%, more foreign workers to harvest fresh fruit bunches from the trees as more oil palms reach their prime fruit-bearing age profile. (Source: Business Times)

Property: Easy first home. Young working adults earnings less than RM3,000 a month can now obtain up to 100% financing to buy their first home under the My First Home Scheme. The scheme will unable young adults to buy houses costing between RM100,000 and RM220,000 with a repayment period of up to 30 years. The scheme sees the participation of 25 conventional and Islamic financial institutions. (Source: The Star)   

Najib unveils RM2bn projects to boost income, create jobs
Malaysia has unveiled investments worth more than RM2bn across nine private projects spanning the energy, agriculture and electronics to healthcare sectors to boost income and create jobs. Among others, the Government announced a RM600m development of seaport and resort in Perak; construction of chemical plants, facilities for advanced lightning and a renewable energy park; a RM1m integrated oil and gas hub; as well as public private partnership to cultivate fragrant rice. In addition, US giant General Electric is partnering Malaysian telecommunication provider Redtone International to invest in a teleradiology hub while QAV Technologies SB will develop a light emitting diode certification centre. FaberGroup has been roped in to spearhead the development of an energy-saving system. (MalaysianReserve)

Bursa mulls new trading platform
Tokyo Stock Exchange (TSE) is one of the parties interested to bid for Bursa Malaysia Securities’ equity trading platform. Bursa Malaysia has issued a request for information to various parties to evaluate trading systems but has yet to call for bids. The fact finding exercise has attracted the interest of various parties, including the TSE,, which plans to propose its Arrowhead trading system to Bursa Malaysia. (Malaysian Reserve)

Bonus issue by Mudajaya
Mudajaya Group has proposed a one-for-three bonus issue involving up to 37.08m new shares. It had also proposed an employees’ share option scheme of up to 10% of its share capital for eligible employees. (Starbiz)

Cypark may spend RM190m on green energy parks
Environmental engineering group Cypark Resources may spend about RM190m to build renewable energy parks at its 17 landfills in Peninsular Malaysia to produce a combined 20 megawatts (MW) of electricity. Group chief executive officer Daud Ahmad said the company is spending RM94.3m on a commercial pilot project at a 10.4ha rehabilitated landfill in Pajam in Nilai, Negri Sembilan. The park involves the integration of three resources available at the landfill - solar, landfill gas (biogas) and waste (biocell) - which is capable of generating up to 10MW of power by 2013. "The energy will be fed to to the National Grid. Under the Renewable Energy Act and Feed-in-Tariff, Tenaga Nasional Bhd will buy the energy," he told reporters after the Fourth Economic Transformation Programme (ETP) Update in Kuala Lumpur yesterday. Cypark expects returns from the Pajam project by year-end. The Pajam landfill is one of the 17 sites the Government has asked the company to close down. (BT)

Dongwha keen on HeveaBoard’s assets
Donghwa Malaysia Holdings SB plans to buy HeveaBoard Bhd’s particleboard manufacturing plant assets for no less than RM245m. HeveaBoard has received a letter of intent from Dongwha. The acquisition would include two particleboard manufacturing plants, industrial land, plants and machinery. (BT)

BFood fares well on debut listing
The share price of Berjaya Food (BFood), which operates the Kenny Rogers Roasters (KRR) chain, fared well on its maiden trading day. The stock opened on a slight premium of 2.5 sen over its offer price of 51 sen and climbed steadily to a day’s high of 64.5 sen. It closed at 63.5 sen, 12.5 sen or nearly 25% higher, against its offer price. Some 35.865m shares were traded, making it the second most active counter on Bursa. BFood is among the best performing IPOs on debut day. (FInancialDaily)

20110309 1208 Global Market Related News.

U.S. soy dips as LatAm output weighs; wheat steady
SINGAPORE, March 9 (Reuters) - U.S. soybean futures edged down, dropping for a third straight day as forecasts of higher South American output pressured the market ahead of a key government report on global demand and supply of agricultural products. 
"Brazil and Argentine crops are looking very big which is a bearish factor for the soybean market," said Kazuhiko Saito, chief commodities analyst at Tokyo-based Fujitomi Co.

India to import less vegoils for first time in ten years-Mistry
KUALA LUMPUR, March 9 (Reuters) - India, the world's No.1 vegetable oil buyer, may import less for the first time in a decade as domestic production has improved in the year to October 2011, a leading industry analyst said on Wednesday.
Dorab Mistry, who handles the trading portfolio for Godrej International, said India's edible oil production is set to rise 11.3 percent to nearly 7 million tonnes.

Gold tracks oil lower; Libya, physicals may help
SINGAPORE, March 9 (Reuters) - Gold tracked oil lower and was under pressure from firmer equities, but bargain hunting from jewellers as well as worries that violence in Libya and the Middle East would spread could offer support for the metal, which has dropped from a lifetime high. 
"I feel it is consolidating, waiting for any lead out of Libya. We'll see what happens on (Friday) prayer day around the Gulf, and then we'll see whether or not there is need for concern. I think that's the focus we have to follow," said Jonathan Barratt, managing director of Commodity Broking Services in Melbourne. 

Oil falls, stocks up but investors still jittery
SINGAPORE, March 9 (Reuters) - Oil prices fell for a second day as OPEC considered raising production, pushing up Asian stocks although investors remained on edge because of the turmoil in the Middle East.
"Oil has stopped rising for now, but it hasn't really retreated to levels that allows aggressive buying in risky assets, so investors will still be jittery," said Hiroichi Nishi, general manager at Nikko Cordial Securities.

Palm oil prices seen steady, before sharp H2 fall-analyst
KUALA LUMPUR, March 8 (Reuters) - Palm oil prices will stay firm over the next two to three months, before investors book profits to send prices plummeting by as much as 30 percent towards year end, a leading analyst said on Tuesday.
Palm oil prices have surged in recent months, on concerns that seasonally heavy rains have stalled harvesting in top producers Indonesia and Malaysia, and major soyoil exporting countries have suffered dry weather.  

Oil : Crude slips to below $105 as concerns over Libya ease
SINGAPORE, March 9 (Reuters) - U.S. crude dropped for a second day, dipping below $105 on Wednesday, after reassurances from OPEC members of ample spare capacity eased anxiety about export losses from Libya, Africa's third-largest oil producer.
The Organization of the Petroleum Exporting Countries is in talks about boosting oil supplies, Kuwait's oil minister said on Tuesday, but some in the group were reluctant to open the taps, saying world supply is comfortable despite the loss of around one million barrels of Libyan crude per day.

COMMODITIES: Oil down as OPEC eyes hike, coffee at 34-yr top
NEW YORK, March 8 (Reuters) - Commodity prices fell broadly on Tuesday, led lower by Brent crude's near 2 percent slide after Kuwait's oil minister said OPEC is considering raising output to help replace war-torn member Libya's lost supplies.    "It's profit-taking as we have a stronger dollar," said Zachary Oxman, managing director of TrendMax Futures.

GLOBAL MARKETS: Oil falls, stocks up but investors still jittery
SINGAPORE, March 9 (Reuters)- Oil prices fell on Wednesday as OPEC considered raising production, pushing up Asian stocks although investors remained on edge due to worries that unrest in the Middle East could spread to other oil exporting nations.
The euro nursed heavy losses early in Asia as worries about European sovereign debt problems tightened their grip following the recent credit rating downgrade for Greece.

U.S. crude inventories rise, gasoline off-API
NEW YORK, March 8 (Reuters) - U.S. crude inventories rose more than expected last week, by 3.8 million barrels, even as   imports fell, the American Petroleum Institute said on Tuesday.
Analysts polled by Reuters had expected a 400,000-barrel draw in crude oil stocks.

China Farm Produce Prices Will Rise Over Next 10 Years (Source: CME)
Prices of agricultural products will "definitely" rise in both domestic and international markets over the next 10 years, due to factors including limited resources and rising labor costs and demand, Qian Keming, director of the ministry's Department of Market and Economic Information, said. The government's policies should go with the trend, aiming to keep those price increases at reasonable levels, Qian said during an online chat on the China Economy Network, the website of the state-run Economic Daily, adding that an annual increase of 10% in farm produce prices can keep farmers active in planting and production. The agriculture minister said previously the government would prevent unreasonable and dramatic price increases while allowing for reasonable rises to ensure supply, amid citizen complaints over rapid food price increases and farmers exiting planting due to low income. "It's a general trend that farm produce prices will run at high levels in the next 10 years," he said. "We must be well prepared."
Vegetable prices rose 20% last year, while fruit prices were up 14% and grain prices increased about 10%, Zhang Ping, Chairman of the National Development and Reform Commission, said at a press conference last week. Prices of food, which account for about 30% of China's consumer price index basket, rose more than 7% in 2010, driving last year's CPI increase to 3.3%, exceeding the government's target of 3%. China will make stabilizing consumer prices a top priority this year and contain inflation increase around 4%, Premier Wen Jiabao said on Saturday during the parliament's annual session.

UN Rapporteur: Eco-Farming Best Way To Feed The World (Source: CME)
Reducing farmers' dependence on oil will be key to feeding the world's rapidly expanding population in the face of climate change and rising fuel prices, the United Nations' special rapporteur on food said. In an interview to coincide with the release of his report on feeding the world in the 21st century, Olivier De Schutter said promoting natural production techniques is the only sustainable way to guard against future crises and stop food prices increasing in-line with oil. "We set up our farming techniques in the 1920s when we thought there would be a never-ending supply of cheap oil," he told Dow Jones Newswires. "Now we are facing a situation where expensive oil and gas and the influence of climate change on yields are scaring us. "Developing farming in a way which makes it less addicted to fossil energy is much more promising. In developing countries, we may have to leapfrog the stage of industrial agriculture and find ways to produce that are less addicted to fossil fuels."
Developing new ways to feed the world has become increasingly pressing in the past year as record-high global food prices have pushed an extra 44 million people into poverty, according to World Bank estimates. Fears of a crisis similar to the widespread unrest of 2007-08 have grown since the price of oil surged to highs seen 29 months ago due to violence in the Middle East. "The oil factor, which has so far not been a driving factor this season, could become an element like it was in 2008," said senior economist with the U.N.'s Food and Agriculture Organization Abdolreza Abbassian. The second price-spike in four years has propelled food security to the top of the international agenda. But while the immediate causes can be blamed on poor 2010 world harvests, observers warn that a broader structural shift is underway as producers struggle to increase world output by 70% over the next 40 years to feed what is expected to be a population of 9 billion.
Experts agree that finding ways to boost the output of Africa's 80 million smallholder farmers will be crucial. What they disagree on is how. Many argue that genetically modified crops and more powerful technology--continuing the methods of the "Green Revolution" of the last century--is the way forward. But De Schutter disagrees. Instead he says ecological methods which enhance soils productivity and protect crops against pests by relying on beneficial trees, plants, animals and insects will be more sustainable and effective by helping boost production in emerging nations, where demand is greatest. "There has been an attempt to relaunch the new agricultural revolution these days but its really very financially unsustainable for farmers," he said. "Those who are hungry today are those who have very small farms to cultivate. We need to help them to produce in ways without expensive agricultural inputs."

Time for the Next Agricultural Revolution? (Source: CME)
The term "Green Revolution" was first used in 1968 by former director of the U.S. Agency for International Developments William Gaud to describe a set of new technologies that had quadrupled yields in the developing world and reaped a record harvest the year before. "We are on the verge of an agricultural revolution," he told his peers at a meeting in Washington. "It is not a violet Red Revolution like that of the Soviets, nor is it a White Revolution like that of the Shah of Iran. I call it the Green Revolution. This new revolution can be as significant and as beneficial to mankind as the industrial revolution of a century and a half ago." Now, as leaders debate how to combat record food prices and producers struggle to meet rapidly-growing demand, the world is looking for a new agricultural revolution. And some are beginning to question whether last century's approach was, in fact, green enough. Experts agree that the global agricultural system is facing an unprecedented challenge.
The United Nations forecasts that food production will need to rise 70% by 2050 to feed an estimated world population of more than 9 billion people. Dietary habits are also changing, particularly in emerging nations. Meat consumption is predicted to increase from 37.4 kg a person a year in 2000 to over 52 kg/person/year by 2050, so that by mid-century, half of total cereal production may go to increasing meat production. Yet debate over how to satisfy our growing hunger continues. And while many leaders are committing more and more funds to agriculture, "under-investment in agriculture is [often] compounded by extensive misinvestment," the World Bank noted in a recent report. UN special rapporteur on food Olivier De Schutter argues that the key is to reduce our dependence on traditional farming inputs, like fertilizers and oil, which are set to push up food prices as they become more expensive. Instead of being resource-intensive, farming must now become knowledge-intensive.
In a new study, he says that using ecologically sustainable methods, like planting nitrogen-fixing trees in fields and animals to reduce pests, can double output from farming in the developing world, where it is needed most, and make production more sustainable in the face of environmental pressures.

PREVIEW-China's commodity imports to slacken after Jan surge
SHANGHAI, March 8 (Reuters) - China's imports of commodities, most of which posted strong increases in January, may finally show signs of easing in February as an extended holiday season disrupted shipments and high prices cut orders.
Market participants are cautious on the mid-term outlook for imports, particularly iron ore and copper, as Beijing's credit tightening has already made it difficult for firms to secure loans to fund purchases. Monetary tightening measures are also seen to create headwinds for overall commodities demand.

IMF: Signs of overheating in emerging markets
WASHINGTON, March 7 (Reuters) - Emerging market economies that powered the global recovery may be growing too fast for their own good as inflation pressures build, a top International Monetary Fund official said on Monday.
China, Brazil and other fast-growing nations have struggled to contain inflation and control heavy inflows of investment money. Although the IMF has been warning for months of the risks of price pressure, the comments by the Fund's first deputy managing director, John Lipsky, suggested the IMF is growing increasingly concerned.

PRECIOUS-Gold rises above $1,430/oz as Libya simmers
LONDON, March 8 (Reuters) - Gold rose above $1,430 an ounce on Tuesday, supported by clashes in Libya, but remained well off the previous session's record high as a retreat in oil prices prompted some investors to cash in gains in the metal.
"Despite the escalation of the unrest in Libya, gold has been struggling to gain a foothold above the old highs with some investors seemingly happy to lock in profit at these levels," said Saxo Bank analyst Ole Hansen.

FOREX-Euro slips, signs of short-term correction seen
LONDON, March 8 (Reuters) - The euro slipped versus the dollar on Tuesday, pausing from a rally spurred by expectations of a euro zone interest rate rise and raising the possibility of a downward correction on concerns about euro zone debt problems.
"As oil has come off people have squared some of their positions and now we could see the euro continue to edge a bit lower," said Adrian Schmidt, currency strategist at Lloyds.

Wheat drops for 2nd day as demand slows, soy down
SINGAPORE, March 8 (Reuters) - Chicago wheat futures lost more ground taking the declines in two sessions to nearly 5 percent as slowing demand and improved crop weather in the United States continued to hammer the market.  "The main thing that we see is that investor demand in wheat has moderated," said Abah Ofon, an agricultural commodities analyst at Standard Chartered Bank.

OPEC production hike talk helps equities
LONDON, March 8 (Reuters) - Oil fell from recent highs  on reports that OPEC may boost production, prompting some recovery on equity markets. "If oil stays in a $100-$120 per barrel range for around half a year the global economy could see a severe slowdown, pushing investors away from stocks, so everything depends on the Middle East now", said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments.

20110309 1207 Soy Oil & Palm Oil Related News.

Reuters : 
Dorab Mistry 
  • Conceivable that palm oil may test RM4,000 in next few weeks on tight stocks, higher energy prices and demand.
  • RM3,000 will act as a price floor for palm oil in 2011.
  • Indonesia palm oil output seen 1.5 million higher at 24 million tonnes in 2011 VS 2010.
  • Malaysia palm oil output seen at 17.3 million tonnes in 2011 VS 17 million tonnes in 2010.
  • India vegetable oil output to rise 11.3% to nearly 7 million tonnes in year to Oct 2011.
  • India vegetable oil import to fall 4.8% to 8.8 million tonnes, first time in 10 years.
James Fry :
  • Indonesia Palm Oil export tax is "Distorting the flow to the market"
  • It would be "Remarkable" if Malaysian palm oil output in 2011 were not better than 2008.

Soy product futures retreated in unison with soybeans futures, succumbing to selling pressure from broader based selling throughout the gain and oilseed complex Tuesday, analysts said. Soymeal for May delivery fell $3.00, or 0.8%, to $360.40 per short ton at the CBOT. Soyoil for May delivery lost 0.62 cent, or 1%, to 58.48 cents a pound. (Source: CME)

Indonesia's weather agency says dry season to start May - June
JAKARTA, March 8 (Reuters) - Indonesia's dry season will start in most areas around May-June, earlier than the previous forecast of July and offering a timely boost to the country's agricultural and mineral sectors, the weather bureau said on Tuesday.
The dry season normally runs from April to Sept/Oct, but the country is in the middle of a wetter-than-expected rainy season that has affected plantation crops and could hit resource exploitation.

Palm oil tumbles on weak crude, better soy prospects
KUALA LUMPUR, March 8 (Reuters) - Malaysian crude palm oil dropped as much as 3.4 percent as a rally in crude oil lost some steam, while prospects of a strong South American soy crop also weighed on sentiment.  "The market tends to fall before the price outlook but the decline was amplified by the movements in soy and crude oil," said a trader with a local commodities brokerage.

Indonesia, Malaysian palm output seen above 40 mln tonnes on yields
KUALA LUMPUR, March 8 (Reuters) - Palm oil production in Indonesia and Malaysia, the world's top two suppliers, will stay above 40 million tonnes per annum this year on improving yields, said a leading agronomist on Tuesday.
Combined output in Indonesia and Malaysia will rise to 40.7 million tonnes this year and rise to 43. 7 million tonnes in 2012 as erratic weather patterns fade, said Ling Ah Hong, a director with plantation firm Ganling.

Malaysia to subsidise palm-oil based biofuel at the pump-sources
KUALA LUMPUR, March 8 (Reuters) - Malaysia will subsidise palm oil-based biofuel at the pump to keep the price at the same level as petroleum diesel, two industry sources with knowledge of the plan told Reuters on Tuesday.
The world's No. 2 palm producer appears to be reviving its biodiesel industry as palm oil output is set to recover, keeping biofuel feedstock prices competitive and potentially presenting less of a subsidy burden for the government.

USDA set to lift US soy stocks, 1st in 11 months
CHICAGO, March 7 (Reuters) - For the first time in 11 months, the U.S. Department of Agriculture this week is expected to raise its forecast of U.S. soybean ending stocks, due a slowdown in domestic usage, analysts said.
USDA has cut its estimate or left it unchanged each month since it released its first forecast of 2010/11 soy ending stocks last May. USDA was scheduled to release its March supply/demand reports on Thursday.

Palm to normalise discount to soyoil in Q3 2011
KUALA LUMPUR, March 7 (Reuters) - Refined palm olein could normalise its discount to competing soyoil in the third quarter of this year as crude palm oil production recovers from a string of erratic weather events, a top industry analyst said on Monday.
The price relationship between the two vegetable oils that compete for use in cooking oil has been unusual for the past two years owing to weak palm oil production in Malaysia, the world's No.2 supplier.

India vegoil imports to rise 5 pct/yr till 2016-Godrej Inds
KUALA LUMPUR, March 7 (Reuters) - India's imports of vegetable oils will rise 5 percent annually  for the next five years, industrial chemicals maker Godrej Industries  said on Monday, adding it would buy 10 percent more palm oil in 2011.
Indian imports of palm oil, soyoil and sunflower oil last year, were 9.2 million tonnes and are seen dropping to 9.0 million tonnes in 2011 on improving domestic output, an industry association said earlier on Monday.