Thursday, March 10, 2011

20110310 1841 FCPO EOD Daily Chart Study.

FCPO closed : 3459, changed : -126 points, volume : higher.
Bollinger band reading : side way range bound downside biased.
MACD Histrogram : turned lower, seller taking initiative.
Support : 3450, 3420, 3350, 3300 level.
Resistance : 3470, 3500, 3550, 3620 level.
Comment :
FCPO closed recorded severe losses with better volume involvement after MPOB Feb 2011 official data showing a slowing demand improving supply development and ITS and SGS cargo surveyor 1~10 Mar released a decreasing export figure while soy oil continue to trade lower after last night substantial falls.
Daily chart formed a wide body down doji bar candle after market opened gap down, edge up little higher and plunge downward all the way before recovered slightly to closed near the low of the day.
Technical reading remained suggesting a side way range bound downside 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.

20110310 1721 FKLI EOD Daily Chart Study.

FKLI closed : 1503 changed : -17.5 points,  volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : turner lower, buyer closing position.
Support : 1500, 1485, 1470, 1458 level.
Resistance : 1515, 1530, 1540, 1550 level.
Comment :
FKLI closed recorded significant loss with better volume changed hand doing about 14 points discount compare to cash market after surprise news on China Feb 2011 registered trade deficit plus getting worst Libya turmoil with the latest crude oil pipe and oil facilities zone bombing triggered regional market to closed red while US Dow Jone last look down by 60 points.
Daily chart formed a wide range down bar candle closed below middle Bollinger band support level after market opened gap down 1 point, slide downward slowly followed by last minutes sell down with closed near the low of the day.
Chart reading changed to suggesting a side way range bound market development possibly testing lower support level should the current middle east issue continue to get worst.
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.

20110310 1026 Local & Global Economic Related News.

Malaysia: GDP growth at 5%-6% in 2011
Malaysia’s GDP is expected to grow by between 5% and 6% this year, said Prime Minister Datuk Seri Najib Razak. He reiterated the Government’s commitment to ensuring that growth remained at about 6% annually in order to achieve the vision of turning the country into a high-income nation by 2020. (Financial Daily)

Singapore: Inflation to hit 4% in 2011
Singapore’s inflation could hit 4% this year, the highest level since 2008 and at the upper end of an official forecast range of 3%-4%, according to the central bank’s quarterly survey of economic forecasts. The Monetary Authority of Singapore (MAS) said the median estimate of 20 private sector economists also showed inflation could hit 5.4% in the first quarter. Singapore’s annual inflation spiked up to 5.5% in January, far higher than analysts’ expectation. (Financial Daily)

Asia: Steps up inflation fight as Thailand, Vietnam raise rates
Asian central banks stepped up their battle against inflation as Thailand and Vietnam raised interest rates, seeking to defuse price pressures before the global jump in oil costs reverberates through the region. The Bank of Thailand increased the one-day bond repurchase rate by a quarter of a percentage point to 2.5%, it said. Vietnam lifted borrowing costs, South Korea is forecast to do so and Malaysia may ask lenders to set aside more money as reserves on Mar 11. A jump in crude oil costs in excess of 20% in the past three weeks is escalating the danger of inflation in the region that’s led the global economic rebound. (Bloomberg)

EU: German industrial output rose in January as construction surged
Industrial production in Germany, Europe’s largest economy, rose in January as construction activity rebounded from its winter hiatus. Output increased 1.8% from December, when it slipped a revised 0.6%, the Economy Ministry in Berlin said. Economists had forecast a 1.7% gain, the median of 35 estimates in a Bloomberg News survey showed. In the year, production rose 12.5% when adjusted for working days. (Bloomberg)

UK: Trade gap narrows more than forecast on record exports
UK trade deficit narrowed more than economists forecast in January as exports surged to a record and imports of aircraft declined. The goods-trade gap shrank to GBP 7.06bn (USD 11.4bn) from a record GBP 9.69bn in December, the Office for National Statistics said. The deficit is the smallest in 11 months and compared with the GBP 8.5bn median forecast of 17 economists in a Bloomberg News survey. Exports rose 5.4% and imports fell 4%. (Bloomberg)

US: Wholesale inventories increase 1.1%, sales climb 3.4%
Inventories at US wholesalers rose more than forecast in January as distributors tried to keep pace with sales that rose by the most since November 2009. The 1.1% increase in stockpiles followed a revised 1.3% gain in December that was bigger than initially estimated, the Commerce Department said. The median projection in a Bloomberg News survey was for a 0.9% rise. Sales jumped 3.4% in January, led by cars, computers and commodities. (Bloomberg)

U.S: Mortgage applications rise 16% WoW, reflecting gains in purchases and refinancing that signal the housing market may be stabilizing. The measure fell 6.5 % WoW in the previous period that included the Presidents Day holiday. The group's purchase index climbed 13% WoW last week, the most since November, while its refinancing gauge jumped 17 % WoW. (Source: Bloomberg)

Portugal: Plans to borrow as much as EUR1b (USD1.4b) in its first bond sale for two months, opting to endure surging interest costs as it tries to avoid following Greece and Ireland in seeking a bailout. The nation is selling 5.45% bonds due September 2013. The debt agency last sold bonds with that maturity on Sept. 8, raising EUR661m and paying a yield of 4.086% on securities that currently offer about 6.37%. (Source: Bloomberg)

Japan: Machinery orders rose more than expected in January, signaling that companies will boost spending as economic recoveries abroad strengthen. Factory orders increased 4.2% MoM from December, the biggest jump in five months, the Cabinet Office said in Tokyo. (Source: Bloomberg)

Thailand: Raised its main interest rate for the second time in three months even after inflation slowed, seeking to defuse price pressures before the global jump in oil costs reverberates through the economy. The Bank of Thailand increased the one-day bond repurchase rate by a quarter of a percentage point to 2.50%, it said in Bangkok. (Source: Bloomberg)

Australia: Home loan approvals fell in January by the most in a year as floods inundated the nation's east coast and consumer confidence slid on expectations a government-proposed carbon tax will lower household income. The number of loans granted to build or buy houses and apartments dropped 4.5% MoM from December, the first fall in seven months, with Queensland state approvals plunging 16.4% MoM, the statistics bureau said in Sydney. The sentiment index fell 2.4% to 104.1 in March from a month ago, a Westpac Banking Corp. and Melbourne Institute survey showed. (Source: Bloomberg) 

20110310 1023 Malaysia Corporate Related News.

Additional RM4bn in subsidies if petrol price not adjusted
The government may have to fork an additional RM4bn on subsidies if no adjustments are made to petrol prices, Prime Minister Datuk Seri Najib Tun Razak said. That would be an addition to the RM10bn in subsidies allocated for this year. "Whether there is a need to adjust petrol prices, it will depend on inflation," he added. (Bernama)

Foreign interest still at 30% for commercial banks
There is no change to the Banking and Financial Institutions Act 1989 ruling that keeps the foreign shareholding in commercial banks at 30%, said Prime Minister Datuk Seri Najib Razak. However, he added that applications by foreign strategic shareholders to raise their stakes in local commercial banks would be evaluated on a caseby- case basis. (Financial Daily)

Tata keen to work with Proton on Nano car
Indian carmaker, Tata Motors, which manufactured the world's cheapest car, Nano, has expressed interest to enter the Malaysian market by working along with Proton. "Mr (Ratan) Tata is keen to work with Proton again. About seven or eight years ago there were some joint discussions to manufacture cars but nothing came out of it. Now our automotive policy is more liberal and there are new opportunities," Deputy Prime Minister Tan Sri Muhyiddin Yassin said. (Bernama)

Pos divestment by 12 April
The divestment by Khazanah Nasional of its 32.2% stake in Pos Malaysia will be completed by 12 April, the date of Invest Malaysia 2011, parties familiar with the process said. According to other sources, bidders are being given the opportunity to meet with the management of Pos and to seek all necessary information from them. Following this process, bidders will be allowed to make adjustments to their bid by 15 March. (StarBiz)

No request from foreign lenders for EONCap stake talks
Bank Negara Malaysia has not received any application from any foreign banks to start negotiations with EON Capital to take a stake in it, according to its governor Tan Sri Zeti Akhtar Aziz. More than a week ago, a business weekly quoted sources as saying that China Construction Bank may seek Malaysian central bank approval to begin negotiations with EON Capital. (BT)

OSK Investment Bank enters MoU with Japan's Okasan Securities
OSK Investment Bank has entered into a MoU with Okasan Securities, the sixth largest integrated securities company in Japan, to cooperate in cross-border trading, advisory and fund raising opportunities between Asean and Japan. Its CEO, U Chen Hock, said the MoU would pave the way for both parties to foster cooperation and development in relation to capital markets particularly in Malaysia, Indonesia, Singapore and Japan. (Bernama)

Proton: Tata keen to work with Proton on Nano car. Indian carmaker, Tata Motors, which manufactures the world's cheapest car, Nano, has expressed interest to enter the Malaysian market by working with Proton Holdings Bhd. (Source: The Edge Financial Daily)

Sime Darby: Emery plans RM480m sukuk issue. Emery Oleochemicals Group, an equal joint venture between Thai-based PTT Chemical International Pte Ltd and Sime Darby Plantation Sdn Bhd, plans to issue RM480m Islamic bonds to fund its global expansion projects. A big portion of the RM480m will fund three projects in Malaysia to produce bio-lubricants and green polymer additives. (Source: Business Times)

Golden Land: In Cambodia for landbank expansion. Oil palm plantation firm Golden Land Bhd said its units had entered into agency agreements in Cambodia for Golden Land to expand its land-banks for palm oil cultivation by nearly 11,000ha. (Source: The Star)

Gaming: No plans to ban sale of lottery tickets in S'gor. Selangor has no plans to follow Kelantan by imposing a ban on the sale of lottery tickets. Menteri Besar Tan Sri Khalid Ibrahim said there would be no change to the current policies and practices governing the sale of lottery tickets in the state. (Source: The Star)  

20110310 0902 Renewables Energy Related News.

MADRID, March 8 (Reuters) - Spain has more water than a week ago to generate hydropower, irrigate crops and make a dent in its hefty gas and grain import bill, the latest official data showed on Tuesday.
Water stocks in drought-prone Spain were 31.3 percent  above average levels for the past 10 years, the Ministry for the Environment and Rural Affairs estimated in its latest bulletin.

VANCOUVER, March 7 (Reuters) - Magma Energy Corp  said on Monday it will buy fellow Canadian clean energy company Plutonic Power Corp  for C$190 million ($195.5 million) as it looks for ways to expand and cut its cost of doing business.
Magma, North America's second-largest geothermal energy company, has been hunting for opportunities outside the geothermal sector, which it says has limited growth potential.

ROME, March 4 (Reuters) - Italy's government rushed on Friday to quell concerns among banks and investors about the impact of new renewable energy rules on funding for the sector, pledging to reach an agreed solution on new solar incentives.
Italy removed a much-feared cap on production incentives for solar power generation in a new renewable energy decree approved on Thursday but included measures which could slow down solar growth.

NEW DELHI, Feb 11 (Reuters) - India could be producing 25 percent of its power from renewables, but prohibitive costs and regulatory hurdles mean its addiction to coal to fuel rapid growth is set to continue, a World Bank report said on Friday.
India's energy crunch is seen as a potential drag on its economic growth prospects and Asia's third-largest economy has struggled to meet funding and generation targets for the sector.

LONDON, Feb 3 (Reuters) - All but five percent of the world's energy needs could be met from renewable sources by 2050, a report by conservation group WWF and energy consultancy Ecofys showed on Thursday.
In 2050, total energy demand could be 15 percent lower than in 2005 due to ambitious energy saving measures even though population, industrial output, freight and travel will increase, the report said.

LISBON, Feb 2 (Reuters) - EDP Renewables , the wind energy subsidiary of Energias de Portugal , said on Wednesday its power generation jumped 32 percent to 14,352 gigawatt hours (GWh) in 2010 from a year earlier.
EDPR, the world's fourth-largest wind energy company in terms of installed capacity, said output grew 33 percent in Europe, while the company's U.S. operations posted an output rise of 30 percent.

20110310 0902 Biofuels Related News.

VANCOUVER, March 8 (Reuters) - Conifex Timber  will spend C$45 million ($46 million) to build a biomass energy facility linked to the Mackenzie, British Columbia, sawmills it is in the process of re-opening, the company said on Tuesday.
The western Canadian forestry firm also reported a loss of C$3.9 million, or 26 Canadian cents per share, in the fourth quarter, as it worked through the restarting and upgrading of its mills in Mackenzie and Fort St. James.

BERLIN, March 8 (Reuters) - The German government said on Tuesday it would hold firm on the phase-in of a high-biofuel petrol despite its widespread unpopularity among motorists, sending shares in biofuel companies higher.
The new fuel, called E10 for its 10 percent bioethanol content, has been shunned by motorists over concerns it may cause engine damage, at the risk of setting back Germany's carbon emissions goals.

SINGAPORE, March 8 (Reuters) - Finland's Neste Oil  is bracing for negative returns from its biodiesel fuels business this year on high feedstock costs, but the company expects global demand to surge, its chief executive said on Tuesday.
Neste Oil is in talks with Singapore companies to carry out possible trial runs of biodiesel-powered vehicles for public use, but Europe will remain the dominant consumer of renewable fuels in years to come, Matti Lievonen told Reuters in an interview.

KUALA LUMPUR, March 8 (Reuters) - Malaysian plans to subsidise biofuel and the launch of the world's biggest biodiesel plant in Singapore promise to give a  fillip to the renewable fuel industry worldwide, planters and traders in the Malaysian capital said on Tuesday.
The moves come as key feedstock palm oil soars to multi-year highs, riding crude oil prices driven higher by fears of spreading unrest in the Middle East that has cut Libyan exports.

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.

MILAN/ROME, March 7 (Reuters) - Climate change bringing floods and drought, growing biofuel demand and national policies to protect domestic markets could drive up global food prices and threaten long-term food security, the United Nations said.
High and volatile food prices are a growing global concern, partly fuelling the protests that toppled the rulers of Tunisia and Egypt this year. The aftershocks have been seen across North Africa and the Middle East from Algeria to Yemen.

BERLIN, March 4 (Reuters) - The German government, moving to reassert control over a planned roll-out of high-biofuel gasoline that threatens to unravel, said it would host a summit on Tuesday next week with all participants in the project.
A spokeswoman for BP , the main producer of the fuel in Germany, told Reuters the oil giant had suspended production at its two refineries in Gelsenkirchen and Lingen because of poor sales.

LONDON, March 2 (Reuters) - Biofuels represent the only way to significantly reduce carbon emissions in road transport fuel and are likely to account for at least 12 percent of supply by 2030, an official with oil giant BP  said on Wednesday.
"There is no other alternative that I can really subscribe to in terms of decarbonising road transport," Olivier Mace, head of strategy, regulatory affairs and communications at BP unit BP Biofuels, told a conference organised by Agra Europe.

20110310 0901 Global Market Related News.

Brent tops $116 as Gaddafi bombs Libyan oil facilities
SINGAPORE, March 10 (Reuters) - Brent crude rose 0.3 percent to surpass $116 on Thursday after forces loyal to Libyan leader Muammar Gaddafi bombed oil industry infrastructure, inflicting what could be longer-term damage on the country's exporting capacity.
"The large explosions and enormous columns of smoke from storage tanks and other facilities in Ras Lanuf, close to the Es Sider terminal, are perhaps more than merely symbolic," Barclays Capital oil analysts headed by Paul Horsnell said. 

U.S. wheat rises from 3-month low; corn, soy steady
SINGAPORE, March 10 (Reuters) - U.S. wheat futures rose 0.7 percent on Thursday as bargain hunting lifted the market following three straight sessions of declines that pushed the market to lowest since early December in the last session.
"The performance of corn and soybean markets is likely to hinge on March supply and demand report due tonight," said Ker Chung Yang, investment analyst at Phillip Futures in Singapore. 

China Jan-Feb soy imports up 6.1 pct on year-customs
BEIJING, March 10 (Reuters) - China, the world's top soy buyer, imported 7.45 million tonnes of the oilseed in the first two months of the year, up 6.1 percent from the year-ago period, official Customs figures showed on Thursday.
Imports in February were 2.32 million tonnes, Customs figures showed, down sharply from 5.14 million tonnes in January.

Gold steady despite oil gains; silver ETF record high
SINGAPORE, March 10 (Reuters) - Gold held steady on Thursday despite a rebound in oil prices as investors waited to see if the international community would agree to a "no fly" zone for Libya, while holdings in the world's largest silver exchange-traded fund struck a record high, reflecting greater interest in the relatively cheaper precious metal.
"Another factor that could see gold and silver higher would be the return of the euro zone sovereign debt crisis. Investors will be looking forward to euro zone policy makers meeting this Friday. If there's no resolution, perhaps we could see a new high," said Ong Yi Ling, investment analyst at Phillip Futures in Singapore.

Oil surge keeps Asian shares on edge
SYDNEY, March 10 (Reuters) - Asian stock markets fell on Thursday in the face of higher oil prices as fighting in Libya intensified, fuelling worries that mounting inflationary pressure could bite into global growth.
"Investors are still concerned about developments in the Middle East, so oil prices during the day may decide the market's direction," said Masumi Yamamoto, a market analyst at Daiwa Securities Capital Markets. 

Oil : Crude rises as Gaddafi bombs Libyan oil infrastructure
SINGAPORE, March 10 (Reuters) - Oil rose around 0.4 percent on Thursday with U.S. crude near $105 and Brent above $116 a barrel, after forces loyal to Libyan leader Muammar Gaddafi bombed oil industry infrastructure, inflicting what could be longer-term damage on the country's exporting capacity.
Gaddafi's forces struck an oil pipeline leading to the Es Sider town and dropped bombs on storage tanks in the Ras Lanuf oil terminal area in the eastern section of Libya that is rebel-controlled. Rebels said government forces also hit an oil pipeline leading to Sidrah.

COMMODITIES: Brent crude oil surge rattles outlook
NEW YORK, March 8 (Reuters) - Brent crude oil prices surged as violence intensified in Libya on Wednesday, and the threat to the global economy posed by expensive oil boosted safe-haven buying of gold but weighed down industrial metals.
"There's huge uncertainty as to what's going on," said Daniel Brebner, a metals analyst at Deutsche Bank.

GLOBAL MARKETS: Oil surge keeps Asian shares on edge
TOKYO, March 10 (Reuters) - Asian shares edged lower on Thursday, weighed down by worries that a surge in oil prices could exacerbate inflation pressures in the region and cripple economic growth.
"Tensions in the (Middle East) will ... remain on our radar. We have reiterated the importance of Friday's Day of Rage in Saudi Arabia," said Jessica Hoversen, currency strategist at MF Global in Chicago.

Global recovery on track but oil poses risk
LONDON, March 9 (Reuters) - The United States will lead a  rich-world recovery characterised by unspectacular growth this  year and next, according to a Reuters poll of economists who  view oil prices as the biggest risk to that outlook.
The monthly survey of more than 250 economists from all over  the world again showed the United States leading the way in  terms of economic growth, with the euro zone, Britain and Japan  floundering by comparison. 

U.S. wheat futures continued to stumble, ending lower on demand worries and relatively adequate supplies. Higher crude oil is prompting worry about the global economy and commodity demand, pushing wheat prices lower despite ongoing worries about dryness in the U.S. Plains that could hurt the crop. Wheat futures have pulled back more than 16% since reaching 2 1/2-year highs last month on an increase in demand, and analysts say trend-following funds are accelerating the losses. CBOT May wheat down 21 cents, or 2.7%, to $7.58 3/4 per bushel. KCBT May wheat down 2.3% to $8.53 1/2 and MGEX wheat down 2% to $9.03 3/4. (Source: CME)

US official: China yuan rate burdens global economy
WASHINGTON, March 8 (Reuters) - China's failure to allow its yuan currency to rise in response to market forces is making it increasingly difficult to address global trade imbalances, a senior U.S. Treasury official said on Tuesday.
China's inflexible exchange rate policies are encouraging other Asian countries to intervene in their respective currencies, Charles Collyns, the Treasury's assistant secretary for international affairs, said at an International Monetary Fund conference in Washington.

PRECIOUS-Gold steadies as risk appetite ebbs
LONDON, March 9 (Reuters) - Gold steadied above $1,430 an ounce on Wednesday, supported by investor concern over the violence across the Middle East and the resurgence of discomfort over the euro zone's finances ahead of a key summit this week.
"I could see (the price) down another $10 but you have to continue buying," said ANZ head of metal sales Peter Hillyard.

FOREX-Euro loses ground as debt worries resurface
LONDON, March 9 (Reuters) - The euro fell against the dollar on Wednesday, settling well below four-month highs as investors switched their focus back to the euro zone's debt problems and away from expectations of a rise in interest rates.
"This week people are talking more about downside risks to the euro, mainly related to the structural problems in the euro zone peripheral countries," said Stephan Maier, currency strategist at Unicredit in Milan.

Euro debt concerns weigh on stocks; oil steady
LONDON, March 9 (Reuters) - Concerns about the euro zone debt crisis weighed on world stocks and lifted Portugal's yields to a new euro-era peak on Wednesday, while crude oil held steady off highs following reassurances on supply from OPEC states. "With the Portuguese bond auction today and euro zone sovereign debt issues coming back to the forefront, the market could be in for a turn," said Matt Brown.

20110310 0900 Soy Oil & Palm Oil Related News.

ITS CPO export down 19% to 353,542 tonnes for the period of 1~10 Mar 2011.
SGS CPO export down 16.6% to 355,485 tonnes for the period of 1~10 Mar 2011.

MPOB Official Data for the month of Feb 2011 vs Jan 2011
Export down 8.53%
Stock up 4.24%
Output up 3.45%

US soy product futures tumble with soybeans on expectations for large crops in South America. Morgan Stanley projects USDA will raise its forecast for Brazil's soy harvest 2% in a monthly crop report Thursday, while agricultural consultancy Celeres raised its output forecast nearly 4% for Argentina, the world's largest export of soy products. CBOT May soymeal drops $7.50 to $352.90 per short ton, while CBOT May soyoil loses 1.36 cent to 57.12 cents per pound. (Source: CME)

China To Import Record 58 Mln Tons Of Soybeans In 2011-12 - USDA (Source: CME)
China is expected to import a record amount of soybeans in 2011-12 as growing meat consumption continues to fuel demand despite a fall in plantings, the U.S. Department of Agriculture's Beijing attache said. The world's biggest soybean importer is expected to buy 58 million metric tons next season, up 5.5% from an estimated 55 million tons this year, the USDA said in a report. Although a slowdown in import growth, which spiked 22% in 2009-10, falling to 9.3% this season, the forecast would still mark a record level of imports, putting increased pressure on already tight world markets. The attache forecasts soy imports from the U.S.--its largest supplier with a 45% share--are expected to reach 27 million tons, or 992 million bushels, next season. It also raised the USDA's current estimate for U.S. exports to China by 1 million tons for 2010-11 to 25 million tons.
"Soybean imports will show steady growth in the foreseeable future because of the strong and growing demand for protein meals and vegetable oils," the USDA said, adding that "limited arable land and a preference for grain crops by farmers for better returns will continue to restrict domestic soybean production growth." Chinese soybean production is expected to fall to 14.8 million tons in 2011-12, down from 15.2 million tons the year before due to a fall in acreage to 8.7 million hectares and poor yields of just over half of the U.S. average of 3 tons a hectare. Soybean acreage is also expected to lose ground to cotton and corn in the Shandong, Henan and Hebei provinces this season, where farmers intend to raise cotton production by 4% in 2011-12. Still, the attache said it doesn't think the government has any plans to lower import tariffs for soybean and soyoil, currently at 3% and 9%.
"Facing a growing supply and demand gap for oilseeds, the government of China is likely to maintain the current trade and industry development policy in 2011-12," it said.

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.   "Improving weather conditions in the U.S., which could translate into improved wheat conditions before the spring growing season, is the primary bearish influence on prices,"

Palm oil at 5-week low despite bullish forecasts
KUALA LUMPUR, March 9 (Reuters) - Malaysian crude palm oil dropped to a five-week low as traders rebalanced their positions ahead of a slew of industry data.  "The headline figure will be March 1-10 palm oil exports and I suspect there will be a drop as big buyers are waiting for further price falls."

Ukraine '11 rapeseed crop may jump 40 pct to 2 mln T
KIEV, March 9 (Reuters) - Ukraine's rapeseed harvest could jump to about 2.06 million tonnes in 2011 from 1.47 million in 2010 due to favourable weather, analyst UkrAgroConsult said on Wednesday.
The consultancy said in a report that Ukrainian farms were likely to harvest 1.12 million hectares of rapeseed this year compared with 857,000 hectares in 2010.

Indonesia palm export tax distorting market flow-Fry
KUALA LUMPUR, March 9 (Reuters) - Indonesia's palm oil export tax is distorting the flow to the market, top industry analyst James Fry said on Wednesday.
"In Indonesia, rapid output growth is already evident, but the export tax is distorting the flow to the market," Fry, who is LMC International Chairman, said at an industry conference.

China may give subsidies to firms buying food estates-Julong
KUALA LUMPUR, March 8 (Reuters) - Chinese edible oil firm Julong Group said Beijing may provide subsidies this year to local companies buying up plantation land outside the country as Chins seeks to secure food supplies.
Sun Wei Jun, an official with Julong Group, said the government would like Chinese firms to own more food estates overseas, which signals that a grab for arable land has started to pick up as agriculture prices rise.

Biofuel appeal stokes bullish palm price outlook
KUALA LUMPUR, March 8 (Reuters) - Malaysian plans to subsidise biofuel and the launch of the world's biggest biodiesel plant in Singapore promise to give a  fillip to the renewable fuel industry worldwide, planters and traders in the Malaysian capital said on Tuesday.
The moves come as key feedstock palm oil soars to multi-year highs, riding crude oil prices driven higher by fears of spreading unrest in the Middle East that has cut Libyan exports.

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.