Tuesday, March 15, 2011

20110315 1828 FCPO EOD Daily Chart Study.

FCPO closed : 3385, changed : +50 points, volume : lower.
Bollinger band reading : pullback correction downside biased.
MACD Histrogram : turned upward, seller lock in profit.
Support : 3350, 3300, 3270, 3200 level.
Resistance : 3420, 3450, 3470, 3500 level.
Comment :
170 points range FCPO closed recorded gain with lower volume changed hand after ITS & SGS released lower but improved export data triggered seller to lock in profit while crude oil and soy oil still traded weaker.
Daily chart formed an up bar candle with small upper shadow closed above lower Bollinger band level after market opened gap down substantially and recovered upward to closed record gain forming a bullish engulfing candle stick formation and a possible MACD histrogram positive divergence.
Chart reading suggesting a downside biased market development with pullback correction taking place and the correction is likely to test higher resistance level possibly near middle Bollingner band level after last few days of severe falls.  
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant with larger cut loss and profit target.

20110315 1731 FKLI EOD Daily Chart Study.

FKLI closed : 1479 changed : -12 points,  volume : higher.
Bollinger band reading : downside biased with possible pullback.
MACD Histrogram : falling lower, seller increase exposure
Support : 1470, 1458, 1445, 1425 level.
Resistance : 1485, 1500, 1515, 1530 level.
Comment :
26.5 points range FKLI closed recorded loss with higher volume transacted for the 4th day doing 5 points discount compare to cash market while regional markets ended substantially lower(particularly Japan down 10.55%, Taiwan down 3.35% and Hong Kong down 2.86%) after news on Japan earthquake damage getting worst with nuclear power plant 4th reactor on fire plus exposure on radioactive into larger area.
Daily chart formed the third doji bar candle with long upper and lower shadows positioned right at lower Bollinger band level after market opened gap down, tested higher and plunged lower before recover upward to salvage partial of the losses to closed off the low of the day.
Chart reading wise, market is likely to trade downside biased with possible pullback correction should recovery on Japan nuclear power plant take place else market could still test lower support levels as MACD indicator is having a negative cross down today. 
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.

20110315 1022 Global Economic Related News.

China: New loans, money supply growth slow after tightening
China’s lending and money supply grew by less than economists expected in February, aiding the government’s campaign to rein in prices in the fastest-growing major economy. Banks extended RMB535.6bn of new localcurrency loans last month, compared with the RMB600bn median estimate. M2, the broadest measure of money supply, climbed 15.7% compared with the median forecast of 17%. February’s new loans compared with RMB700bn a year earlier and RMB1.04trn in January. (Bloomberg)

China: Manufacturing surpassed US in 2010
China’s manufacturing sector surpassed that of the US last year to take the world’s No 1 spot, boosted by faster economic growth. China’s manufacturing added almost USD2trn the country’s GDP in 2010, compared with USD1.95trn in the US. That’s the first time China has topped the US since data collection began after World War II. The US ranked first in 2009, with USD1.73trn in value added, a drop of more than 8% from 2008 on an inflation-adjusted basis. China was second, with USD1.69trn, an increase of 11%. (Bloomberg)

Japan: Bank of Japan pumps cash, boosts asset purchases
The Bank of Japan (BOJ) poured a record amount of cash into the financial system and doubled the size of its asset-purchase plan to shield the economy from the effects of the nation’s strongest earthquake on record. The central bank pumped JPY15trn (USD183bn) into money markets to assure financial stability amid a plunge in stocks and surge in credit risk. The BOJ also enlarged a program buying assets from government bonds to exchange-traded funds by JPY5trn. Corporate debt will rise by JPY1.5trn and it will also take on an additional JPY450bn in ETFs and JPY50bn in REITs. (Bloomberg)

India: Inflation rate unexpectedly accelerates
India’s inflation unexpectedly accelerated in February, increasing pressure on the central bank to raise interest rates this week for the eighth time in a year. The wholesale-price index rose 8.31% y-o-y after an 8.23% jump in January. The median forecast was for a 7.8% increase. Manufacturing inflation accelerated to 4.9% in February from 3.8% in January. Fuel inflation quickened to 11.49% last month. (Bloomberg)

UK: Fitch affirms AAA rating on ‘strong’ budget plan
Fitch Ratings said the UK should keep its top credit grade, citing the government’s efforts to reduce the budget deficit and the easing of risks related to the banking industry. Fitch commented that the strong budgetary consolidation effort and declining fiscal risks arising from the UK financial sector support the ‘stable outlook’ on the AAA ratings. Fitch said the “principal risk” to the rating is a weaker-than-expected recovery that forced the government to reassess its fiscal plans and led to additional bank strains. However, it does not currently consider these threats “to be sufficiently material to threaten” the AAA rating. (Bloomberg)

China: Lending and money supply grew by less than economists expected in February, aiding the government's campaign to rein in prices in the fastest-growing major economy. Banks extended CNY 535.6b (USD81.5b) of new local-currency loans last month. M2, the broadest measure of money supply, climbed 15.7% YoY. (Source: Bloomberg)

Japan: Moody's sees risk of hitting fiscal 'tipping point'. Japan may "at some point" reach a fiscal "tipping point" if investors lose confidence in the soundness of government finances and demand a risk premium on the nation's bonds, Moody's Investors Service said. The March 11 earthquake "may have shifted such a potential tipping point a bit forward, unless Japan's political parties are galvanized by the crisis to also address the country's long- term fiscal challenges," Tom Byrne, a senior vice president with Moody's, said in an emailed note. (Source: Bloomberg)

20110315 1014 Malaysia Corporate Related News.

KLCI Daily Chart

George Kent plans to increase exports by 80%
George Kent (Malaysia) wants to increase its exports of water meters and brass products by up to 80% in the next two to three years from the present 55%. The company also plans to invest up to RM100m over the next three to four years to expand its meter and original equipment manufacturing (OEM) businesses. Its chairman Tan Sri Tan Kay Hock said it is looking to increase its exports to 20 countries as the demand for water meters grow. This is due to high demand for houses and apartments and the need to replace old meters. (BT)

Public Bank’s Teh celebrates birthday with promise of nice dividend present
Shareholders gave a lot of applause and sang “Happy Birthday” to Public Bank chairman Tan Sri Teh Hong Piow at the group's AGM yesterday where he set a medium-term target of achieving a net return on equity (ROE) of above 26% and an impaired loan ratio of below 1% as he believes the banking sector in Malaysia would be able to maintain its profitability despite uncertainty in the global markets. Chief operating officer Leong Kwok Nyem said Public Bank could maintain a dividend payout ratio of 50% in the medium term. (StarBiz)

Smartag to raise RM17.7m in ACE listing
Smartag Solutions is aiming to raise RM17.7m in its initial public offering (IPO) in the Ace Market in the second quarter of 2011. Approximately RM3.4m from the IPO proceeds would be channeled into further enhancing the company’s R&D expertise. Incorporated in 2004, Smartag is a provider of total RFID-based solutions, (Financial Daily)

Benalec gets Melaka reclamation works
Benalec Holdings has entered into an agreement with Yayasan DMDI, a company set up up by the Melaka state government, to undertake reclamation works for the latter. James Cekap, a wholly owned unit of Benalec, had on the same day entered into a deed of assignment with DMDI, wherby the latter had agreed to sign its rights and transfer its liabilities and obligations of the concession to reclaim a piece of land in Melaka for the former. On 11 March, the Melaka government granted DMDI the right to reclaim a portion of the coast of Kawasan Kota Laksamana in Bandar Melaka. Upon the reclamation works, the reclaimed land will measure about 101.1 hectares. (Financial Daily))

Axis Global Industrial REIT set at indicative price range of RM1.00-1.05
The initial public offering for Malaysia's Axis Global Industrial REIT has been set at an indicative price of RM1.00-1.05 a unit, two sources who have seen the information memorandum told Reuters. The share base of about 2 billion units prices the IPO at between RM2.0bn-RM2.1bn. Axis Global Industrial will hold about 35% debt level, which translates into a net asset value of about RM2.02bn. Sources with direct knowledge of the deal told Reuters that Axis REIT Management SB would list Axis Global Industrial REIT in 2Q this year, in what would be the world's largest sharia’ real estate investment trust with more than RM3bn in assets. (Reuters)

Fitters gets RM33m job
Fitters Diversified announced that its wholly-owned subsidiary Z-odd Design SB had been awarded a contract worth RM32.98m for the construction and completion of fit-out works for Kidzania Kuala Lumpur, an indoor educational theme park. The duration of the project is seven months and will contribute positively to their earnings. (Financial Daily)

SP Setia: More medium-cost apartments in Setia Alam. SP Setia Bhd plans to launch at least another 300 units of medium cost apartments in its Setia Alam township in the near future to benefit from the government's "My First Home Scheme". (Source: The Edge Financial Daily)

TM: Unit gets a further 10-year concession deal on Menara KL. Telekom Malaysia Bhd's (TM) subsidiary Menara Kuala Lumpur Sdn Bhd (MKLSB) has signed a 10-year concession agreement worth RM50m with the Government. (Source: Bursa Malaysia)

TDM: To build private specialist hospital in Kuantan. Terengganu Development Management (TDM) Bhd will build a RM120m private specialist hospital in Kuantan. The construction is expected to be completed by next year. (Source: The Edge Financial Daily)

Cocoaland: Buys Rawang land. Cocoaland Holdings Bhd is acquiring two pieces of industrial land in Rawang for RM7.85m from Riviera Properties Sdn Bhd. The lands are acquired for the construction of a factory and warehouse. (Source: Bursa Malaysia)

George Kent: To invest up to RM100m to expand ops. George Kent (M) Bhd plans to invest up to RM100m in the next three to four years to expand its meter and original equipment manufacturing (OEM) businesses. (Source: The Star)

APFT: Public subscription over subscribed. APFT Bhd's 15m shares allocated for public subscription has been oversubscribed by 12x. The company will be listed on the Main Market of Bursa Malaysia on March 18. (Source: The Star)

Benalec: Gets Melaka reclamation works. Benalec Holdings Bhd has entered into an agreement with Yayasan DMDI (DMDI) to undertake reclamation works at the coast of Kawasan Kota Laksamana in Bandar Melaka. (Source: Bursa Malaysia)

Plantation: Only 10 biodiesel plants operating. The government has issued 60 biodiesel manufacturing licences as at end-February 2011 but only less than one fifth has started production. This is due to the lack of demand for biodiesel exports and high palm oil prices in the 2H10. (Source: Business Times)    

20110315 1000 Global Market Related News.

Brent drops below $112 after Japan nuclear plant blasts
SINGAPORE, March 15 (Reuters) - Brent crude fell by as much as 1.9 percent to below $112 after explosions rocked an earthquake-stricken Japanese nuclear plant on Tuesday, sending radiation levels higher and dampening sentiment across financial markets.
"People are going for risk aversion, so investors are liquidating assets and positions including in crude oil and gold," said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd.

Gold down 1 pct as equities tumble on Japan quake
SINGAPORE, March 15 (Reuters) - Gold slid more than 1 percent on Tuesday as declines in stock markets triggered by a deepening nuclear crisis in Japan prompted speculators to sell bullion to cover losses, while holdings on the ETF fell to their lowest since May last year.
"It still looks like it's constructive. It's just consolidating. But if we get a large sell-off in equities, people will tend to sell gold," said Jonathan Barratt, managing director of Commodity Broking Services in Melbourne.

Japan shares plunge on nuclear woes, hitting other assets
SEOUL, March 15 (Reuters) - Japanese shares plunged more than 14 percent on Tuesday as fresh explosions rocked a damaged nuclear plant and triggered a rise in radiation levels, sending investors fleeing from riskier assets such as equities and commodities across Asia.
"All focus is on the nuclear crisis. In the situation where  the crisis appears to be worsening, foreign investors and  domestic fund operators are pulling out from Japanese shares," Hideyuki Ishiguro, a supervisor at Okasan Securities in Tokyo. 

Oil : Oil steady above $101, Japan, Saudi move eyed
SINGAPORE, March 15 (Reuters) - U.S. oil was steady above $101 on Tuesday, with investors weighing the risk from Saudi Arabia's troop deployment to Bahrain and wider tensions in the Middle East against the near-term demand sapping impact from Japan's earthquake.
Brent was also little changed -- down about 0.2 percent from Monday -- while natural gas  extended gains on expectation that Japan will buy more LNG and other hydrocarbons to make up for the loss of nuclear power capacity.

COMMODITIES: Markets roiled by Japan; Saudi tensions support oil
NEW YORK/LONDON, March 14 (Reuters) - Brent oil hit a 2-1/2-week low in volatile trade on Monday before recovering and gold rose, as commodity investors weighed the impact of Japan's earthquake against rising tension in the Middle East.
"Japan's demand is expected to be way down in the near to medium term. But Saudi troops in Bahrain and fighting in Yemen and Libya bounced crude off their lows," said Phil Flynn, analyst at PFGBest Research in Chicago.

GLOBAL MARKETS: Asia stocks post losses at open, Nikkei falls 5 pct
SEOUL, March 15 (Reuters) - Shares in Asia's developed markets outside of Japan fell modestly on Tuesday on losses in the resource sector and companies exposed to the nuclear industry.
Japan's Nikkei average opened down 1.9 percent but quickly extended losses to trade down 5 percent, adding to losses of more than 6 percent on Monday. The yen  fell slightly to 81.80 against the dollar.

Shell to update on investment plans amid turmoil
AMSTERDAM/LONDON, March 15 (Reuters) - Royal Dutch Shell  will update investors on Tuesday on its exploration and production pipeline as continuing political unrest in the Arab world clouds the short-term outlook in the oil market.
Shell has been generating more cash after investing more than $100 billion in exploration and production over the past five years, so the focus is on how much it plans to invest after 2012 and the level to which it expects production to rise.

US wheat futures recover from sharp losses as lower prices attract buyers. The markets rebound from recent sell-offs with corn and soybeans. Grains took a hit Friday from concerns natural disasters would reduce demand from Japan, a major importer. Yet, delays in shipments and purchases are expected to be only temporary, analysts say. CBOT May wheat closes up 2c at $7.20 3/4 a bushel, while KCBT May wheat gains 2 1/2c to $8.25 1/2 and MGE May wheat rises 3/4c to $8.59 1/4. (Source: CME)

US corn futures finish slightly higher, snapping a six-session slide as users of the grain enter the market looking for a bargain. Buyers remain nervous about supplies, which are projected to fall to a 15-year low by the end of the crop's marketing year on Aug. 31. Trader suspect prices may have established a near-term low after reports of devastation in Japan did not push the market to a fresh low early Monday, says Jack Scoville, vice president of Price Futures Group. The market dropped nearly 11% last week. CBOT May corn rises 1 3/4c to $6.66. (Source: CME)

Earthquake's Impact On US Grain Exports Depends On Port Damage (Source: CME)
The location of Japan's devastating earthquake and tsunami is likely to limit the impact on trade of U.S. agricultural commodities, though export groups say they still don't have a clear assessment of infrastructure damage. Japan is the biggest customer for U.S. corn and pork exports, as well as a key consumer of soybeans and wheat. The disaster is expected to have initial impacts on the flow of goods into the country, yet the prolonged impact will hinge on the health of ports in central and southern areas and how widespread destruction is throughout the country. The massive earthquake Friday hit northeast sections of Japan the hardest. The disaster may have cut Japan's grain-warehousing capability by 15% to 20%, which could curb imports as the country has fewer places to store grains, according to AgResource Co., a Chicago advisory firm. The firm estimates the damage to storage could trim Japan's near-term corn imports by 500,000 to 1 million metric tons.
The country accounts for nearly 30% of U.S. corn exports, bringing in 15.4 million metric tons in the most recent crop year. The U.S. Grains Council said Friday that the disaster "could be of significance" to the grain trade. Yet a bulk of the damage appears to be at ports located in northern parts of the country, which are too small to handle U.S. ships, while larger ports in southern areas could be up and running in the next week, wrote Morgan Stanley analyst Hussein Allidina in a note to clients. "If this turns out to be the case, we expect no impact to trade flows," Allidina said. Feed-processing facilities have also been damaged, analysts said, which could disrupt imports as well. But the facilities are mostly located in the central part of the country, which wasn't been hit as hard, said Parr Rosson, an agricultural economist at Texas A&M University. Rosson said the overall impact will depend on how many people have been displaced or killed.
He added that with damage limited in major cities, long-term demand for agricultural commodities might not be significantly hurt. The U.S. Meat Export Federation won't make any revisions to its export forecasts until the trade group receives "factual information about the actual impact on factors such as consumer demand, Japan's national economy and domestic production and inventories," a federation spokesman wrote in an email. Tyson Foods Inc., which exports beef, chicken and pork, was "not currently aware of any disruption to our exports to Japan," a spokesman said in an email. Japan is the top international customer for U.S. pork in terms of sales dollars, accounting for nearly $1.646 billion in 2010, over 34% of U.S. total pork exports, according to data from the U.S. Department of Agriculture and U.S. Meat Export Federation. The disaster could have more direct impact on the rice market. Morgan Stanley noted that the tsunami appeared to hit Japan's rice-growing areas hard.

U.K. 2010 Food And Drink Exports Up 11.4% To Over GBP10 Bln (Source: CME)
U.K. food and non-alcoholic drink exports topped GBP10 billion for the first time last year, the Food and Drink Federation said, marking the sixth consecutive year of record export performance. The value of shipments rose 11.4% to GBP10.83 billion, more than double 2009's growth rate of 5.1%, due to "exceptionally strong growth in both mature and developing non-European Union markets," the report said. Although Ireland, France and the Netherlands remain the principal importers of U.K. goods, growth in Africa and a 34.6% rise in Asian imports meant non-European Union buyers accounted for 23.1% of exports, compared with 20.6% in 2009.  Rising soft commodity prices also gave figures a boost. Second-half performance was responsible for nearly three-quarters of total growth between 2009 and 2010 as inflation tripled from 1.9% in January to 6.1% by December.

China Vice Minister: Too Early To Project 2011 Grain Output Rise (Source: CME)
While China remains hopeful for an increase in its summer grain output this year, it is too early to project whether the country's full-year grain harvest will rise, Vice Minister for Agriculture Wei Chaoan said. His comments add uncertainty to an already complicated grain outlook in the middle of prolonged drought that is affecting major wheat producing areas and local governments that raised their grain output targets for this year. Speaking at a press conference on the sidelines of the National People's Congress, China's legislature, Wei said China aims to stabilize its grain output at more than 500 million metric tons this year, ensure such output stays a top priority over the next five years and wants domestic grain output to supply more than 95% of demand. China is likely to reap the summer harvest this year as drought has not made a serious impact on wheat, Wei said. "The overall situation of summer grain production is good," he said, adding wheat acreage has increased and sowing quality was sound.
Summer grain, most of which is wheat, accounts for only 20% of total grain output, Wei said. Autumn grain, which includes medium- and late-season rice and corn, contributes about 70% of total grain output. Early-season rice represents about 10%. China's Shandong province, the nation's second-largest wheat producer, is expected to produce slightly more wheat this year, the local agricultural department said. Henan, China's top wheat producer, said previously it aimed to produce 31.25 million tons of wheat this year, up from 2009's 30.56 million tons. Wei said China consumed 54.6 million tons of fertilizer last year, adding the nation's production capacity of nitrogenous fertilizer has far exceeded its demand, but potash and phosphate fertilizer need imports. Commenting on vegetable prices that have been rising sharply since the second half of last year, Wei said "a recent sharp rise in vegetable prices wasn't caused by short supply."
Prices of farm produce on the international markets rose remarkably faster than in China, he said. Rising labor costs and excess liquidity also sent prices higher, he said. China's grain output rose 2.9% on year to 546.41 million tons last year, marking the seventh consecutive year of growth for China's grain output. The ministry said in a statement Saturday that China aims to raise its grain output capacity by 50 million tons by 2015.

China Looks To Overseas Farmland To Add To Supply (Source: CME)
Even as top Chinese officials used the annual legislative National People's Congress concluded to deliver a barrage of assurances on the country's food sufficiency, China is also on a drive to expand its control of overseas agricultural land as added security. China's state-backed Beidahuang Land Cultivation Group will acquire 200,000 hectares of farmland overseas this year in exchange for developing logistics and warehousing on the properties, Chairman Sui Fengfu said. The move is a sign that Chinese agribusinesses are responding to the government's call to move faster on overseas expansion in an area that is increasingly important due to swiftly rising demand and potentially unstable supply. Beidahuang, the corporate vehicle for China's northeastern Heilongjiang provincial government, is one of China's largest rice millers and, through subsidiary Jiusan Oil & Fat Co., one of its largest soy processors.
"We're planning 3 million mu (200,000 hectares) of projects this year," Sui said, adding that these tracts are in countries including Brazil, Argentina, Venezuela, Russia, Australia, Zimbabwe and the Philippines. Sui later told local media the company uses different methods of acquisition, including land leases or outright purchases, depending on the country. Early last year, the company said it closed deals to acquire thousands of hectares in Argentina and Cuba to produce rice, soybeans, wheat and rapeseed in exchange for Chinese investment in logistics and irrigation. Beidahuang's overseas plans, disclosed during the week-and-a-half-long congress, come at a time of receding drought domestic conditions which gave state officials the confidence to emphasize China's self-sufficiency in grains. Nie Zhenbang, director of the State Administration of Grain, said China is expected to reap a record wheat harvest this year.
The end of the drought and China's relatively high wheat reserves also led the chairman of state grain trader Cofco, Ning Gaoning, to state that the company isn't considering importing any more Australian feed wheat this year. In a news conference, Premier Wen Jiabao said inflation remained a threat, and vowed to strengthen agriculture distribution to combat price increases. Agriculture vice minister Wei Chaoan introduced a more sober line when he said Saturday it was too early for China to project whether the country's full-year grain harvest will rise. The private sector didn't completely agree with the more optimistic government officials. Liu Yonghao, chairman of China's largest feed producer New Hope Group, said China's grain output this year will likely fall due to poor weather conditions, as "the problems facing agriculture are still severe." Concerns remain over China's corn stocks, which are at historically low levels.
Nie acknowledged that China's corn reserves are under pressure, though they were still sufficient. China's food prices rose 11% in February, continuing to feed sharp inflationary pressures.

Japanese ports sustain major damage, some out for months
TOKYO/SINGAPORE, March 14 (Reuters) - Japanese ports handling as much as 7 percent of the country's industrial output sustained major damage from last week's earthquake, disrupting global supply chains and causing billions of dollars in losses, industry officials said.   
Japan has begun assessing the damage to port infrastructure, vital to receiving aid, commodities and goods for rebuilding areas devastated by the 8.9 magnitude quake and tsunami that are likely to have killed more than 10,000 people.

TIMELINE-Glencore's road to life as a public company
LONDON, March 11 (Reuters) - Commodities trading giant Glencore is working towards an initial public offering (IPO) in London and Hong Kong which could value the Swiss-based firm at $60 billion. Glencore is aiming for an IPO in May, according to source close to the situation.
Below are some likely key dates for Glencore in its possible path to going public.

Japan grapples with nuclear crisis; economy at risk
FUKUSHIMA, Japan, March 14 (Reuters) - Japan scrambled to avert a meltdown at a stricken nuclear plant on Monday after a hydrogen explosion at one reactor and exposure of fuel rods at another, just days after a devastating earthquake and tsunami that killed at least 10,000 people.
Roads and rail, power and ports have been crippled across much of Japan's northeast and estimates of the cost of the multiple disasters have leapt to as much as $170 billion.

PRECIOUS-Gold rises as Japanese quake fuels risk aversion
LONDON, March 14 (Reuters) - Gold rose in Europe on Monday, recovering some of last week's one percent losses, as the impact of an earthquake in Japan added to upward pressure on the metal, driving prices towards recent record highs.
"Japan is another risk element in a plethora of events which have been important in the minds of investors in the past quarter," said Deutsche Bank analyst Daniel Brebner.

FOREX-Dollar rises vs yen as BOJ acts; euro boosted
LONDON, March 14 (Reuters) - The dollar rebounded from near record lows against the yen on Monday after the Bank of Japan announced a series of policy easing measures to shore up the economy in the wake of a devastating earthquake and tsunami.
"The BoJ is now committed to pumping the economy full of as much liquidity as it can. It is providing more monetary stimulus just as other central banks consider tightening, so interest rate differentials should favour a weaker yen," said Kathleen Brooks, research director at FOREX.com.

CBOT soy, corn fall; Japan quake rattles markets
SINGAPORE, March 14 (Reuters) - U.S. soy futures fell by around half a percent and corn also slipped as the nuclear accident at earthquake-damaged reactors unnerved commodity investors, and worries about supply eased.  "Last year Japan took 15 million tonnes of corn from the United States. From the fundamentals side it's an issue for U.S. corn. It is bearish in the market in the short term but the question is: for how long the infrastructure is going to remain down?" Brett Cooper, senior manager of markets at FCStone Australia.

Japan concerns send world stocks to 6-wk low
LONDON, March 14 (Reuters) - World stocks fell to a six-week low on Monday, driven by a 7.5 percent fall in Japanese stocks, while oil tumbled as concerns grew about the economic damage from Japan's earthquake and tsunami. "Japan is going to be a focus and it is not going to be a good day... There are not enough positive reasons out there to buy," Matt Brown, trader at Catalyst Markets said.

20110315 0959 Soy Oil & Palm Oil Related News.

ITS CPO export down 17% to 526,407 tonnes for the period of 1~15 Mar 2011
SGS CPO export down 14.7% to 520,463 tonnes for the period of 1~15 Mar 2011.

US soy-product futures end mixed, with soymeal recovering from prior declines after soybeans stabilized. The exhaustion of selling pressure and a lower-than-expected NOPA February crush number that probably caused traders to have ideas that the soybean availability is low amid some firm processor bids underpinned soymeal, says Mike Zuzolo, president Global Commodity Analytics and Consulting. Soyoil futures ended lower, but did trim losses on a late recovery in crude oil. CBOT May soymeal settled 1.6% higher at $355.50/short ton and May soyoil ended down 0.9% at 55.38c/pound. (Source: CME)

US soybean futures end higher after early selling pressure eases as risks posed by uncertainty in global markets and the threat of reduced demand from Japan appeared to be priced into futures, analysts say. Commercial buying near session lows enabled futures to bounce, shrugging off weakness from lower than expected February crush rates, prospects for larger South American crops and increased Brazilian harvest pressure, a CBOT floor broker said. However, advances were limited, as traders remained concerned about further shedding of risk. CBOT May soybeans settled 5 1/2c or 0.4% higher at $13.40 a bushel. (Source: CME)

India February Edible Oil Imports Fall 20% To 538,172 Tons (Source: CME)
India's edible oil imports in February dropped by a fifth from a year earlier because of higher oilseeds production and more crushing locally due to rising overseas demand for oilmeals. Edible oil imports during the fourth month of the marketing year that began Nov. 1, 2010, slipped to 538,172 metric tons from 671,293 tons, the Solvent Extractors' Association of India said Monday. Total imports in the November-February period fell 12% to 2.6 million tons. Vegetable oil imports, which include non-edible oils, declined 21.5% to 549,881 tons in February, the trade body said. The country's total vegetable oil imports will likely fall to 8.7 million tons to 8.8 million tons this year from 9.2 million tons last year, B.V. Mehta, executive director of the association, said. India is the world's second-largest vegetable oil importer after China, and meets more than half its requirements through imports. The country buys palm oil mainly from Indonesia and Malaysia, and soyoil mostly from Brazil and Argentina.
Imports in February were lower because a rise in oilseed crushing to meet export demand for oilmeals also boosted local edible oil output. India's oilmeal exports in February more than doubled to 703,400 metric tons from 329,448 tons. Also, India's total oilseed output this marketing year is likely to rise 11.8% to 25.44 million tons, according to the Central Organisation For Oil Industry and Trade. According to data released by the Solvent Extractors' Association, crude palm oil imports declined 29% to 276,436 tons in February, while refined, bleached and deodorized palm olein imports fell 31.5% to 89,849 tons. Sunflower oil imports decreased 21% to 37,237 tons, but soyoil purchases rose 47% to 129,640 tons, the trade body said. As of March 1, total edible oil stocks at ports were estimated at 630,000 tons. This comprises 380,000 tons of crude palm oil, 100,000 tons each of RBD palm olein and soyoil, and 50,000 tons of sunflower oil.
Indian companies have also entered into contracts to import another 900,000 tons of edible oil, the trade body said. Imports of non-edible oil--used to make soaps, detergents and for other industrial purposes--declined 60% in February to 11,709 tons.

Palm oil falls to 3-1/2 mth low after Japan quake
JAKARTA, March 14 (Reuters) - Malaysian palm oil futures fell to a 3-1/2-month low on Monday, reversing early gains, as investors sought safe-haven assets after last week's massive earthquake and tsunami in Japan, and easing unrest in the Middle East weighed on crude oil.  "There has been a lot of downward pressure on commodities," said a palm oil analyst.

India's Feb vegoil imports down on high local supply
NEW DELHI, March 14 (Reuters) - India imported 549,881 tonnes of vegetable oils in February, down by about a fifth from a year ago, trade data released on Monday showed, a fall largely due to higher crushing of domestic oilseeds following a normal monsoon.
India, the world's No. 1 importer of cooking oils, buys mainly palm oil from Indonesia and Malaysia and a small quantity of
soyoil from Argentina and Brazil.

China 2011 soybean imports seen up 9.5 pct, exceed 60MT-report
BEIJING, March 13 (Reuters) - China's soybean imports may exceed 60 million tonnes this year, a jump of at least 9.5 percent from a year ago, and push up global prices, a senior agricultural official said in a report at the weekend.
China's strong demand, along with the willingness of farmers in the United States to grow more corn instead of soybeans due to ethanol fuel demand, will send soybean prices higher, Chen Xiwen, deputy head of the central government's rural work leading panel, told the official Guangzhou Daily.

Argentine soy stays in good shape due rains -gov't
BUENOS AIRES, March 11 (Reuters) - Most of Argentina's 2010/11 soybean crop is developing well due to ample soil moisture after plentiful rains in recent weeks, the Agriculture Ministry said on Friday in a weekly crop progress report.
Argentina is the world's No. 3 exporter of soybeans and the top supplier of soyoil and meal, and heavy rainfall since mid-January has brightened the outlook for the oilseed.