Wednesday, March 23, 2011

20110323 1808 FCPO EOD Daily Chart Study.

FCPO closed : 3306, changed : -2 points, volume : lower.
Bollinger band reading : downside biased.
MACD Histrogram : falling, seller in control.
Support : 3300, 3270, 3200, 3150 level.
Resistance : 3350, 3420, 3450, 3470 level.
Comment :
FCPO closed recorded marginal loss with lower volume transacted while soy oil and crude oil are currently trading firmer after overnight closed off the low.
Daily chart formed a down doji bar candle positioned between middle and lower Bollinger band level after market opened gap up, tested higher resistant level and retreated lower to closed near the low of the day.
Chart reading suggesting a downside biased market development resuming downward movement after the recent pullback correction testing lower support level. 
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/breakdown with larger cut loss and profit target.

20110323 1725 FKLI EOD Daily Chart Study.

FKLI closed : 1505.5 changed : +2.5 points,  volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : rising, buyer testing market.
Support : 1500, 1485, 1470, 1458 level.
Resistance : 1515, 1530, 1540, 1550 level.
Comment :
FKLI closed recorded small gains with lower volume participation doing 5 points discount compare to cash market while regional market closed mixed due to lack of catalyst news to influence market movement.
Daily chart formed an up doji bar candle positioned above middle Bollinger band level after market opened gap down little lower, edging up higher slowly but easing lower to closed off the high of the day.
Chart reading suggesting a side way range bound 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.

20110323 0930 Global Economic Related News.

Japan: Yen near 2-week low as nuclear crisis eases, Asia stocks climb
The yen traded 0.3% from a two-week low against the euro as Asian stocks rose and progress by Japan’s government in restoring a crippled nuclear plant’s cooling systems sapped demand for the currency as a refuge. The euro was 0.2% from the strongest level in four months against the greenback on speculation European Central Bank officials will reiterate this week their willingness to raise interest rates next month. The yen erased losses against the dollar on speculation Japanese investors are repatriating overseas assets.(Bloomberg)

Japan: Weighs postwar-style reconstruction agency, injects cash
Japan may set up a reconstruction agency to oversee earthquake repairs, while data showed the central bank pumped record liquidity into lenders, as the nation grappled with its worst disaster since World War II. The Bank of Japan said yesterday lenders’ deposits with the central bank more than doubled since March 11, to JPY41.62 trn (USD513bn). (Bloomberg)

China: Yuan rises to 17-year high on interest-rate increase speculation
China’s yuan strengthened to a 17-year high on speculation policy makers will raise interest rates and allow more currency appreciation to curb inflation. The current cycle of rate increases is halfway over, the China Securities Journal said in its editorial today. The pace of yuan gains may accelerate as it will reduce the cost of imports, the paper said. The People’s Bank of China set the reference rate 0.06 % higher at 6.5592 per USD, the strongest level since July 2005. (Bloomberg)

Taiwan: Jobless rate fell to a 28-month low in February
Taiwan’s unemployment rate declined to a 28-month low as the island’s economic expansion encouraged recruitment, bolstering the case for higher borrowing costs. The seasonally adjusted rate fell to 4.59 % in February from 4.71 % in January, the statistics bureau said in Taipei today. That’s the lowest since October 2008. The median estimate of 10 economists surveyed by Bloomberg News was for a jobless rate of 4.7%. (Bloomberg)

UK: February inflation quickens more than forecast to 4.4%
UK inflation accelerated more than economists forecast in February to the fastest pace in more than two years, adding pressure on the Bank of England to increase its benchmark interest rate. Consumer prices rose 4.4% from a year earlier after a 4% increase in January, the Office for National Statistics said today in London. That’s the most since October 2008. The median forecast of 32 economists in a Bloomberg News survey was 4.2%. A separate report showed the budget deficit unexpectedly widened as government revenue fell. (Bloomberg)

US: Home prices fell 3.9% in January from prior year, FHFA says
US home prices fell 3.9% in January from a year earlier as the housing market struggled to recover from the worst crash in seven decades, according to the Federal Housing Finance Agency. The drop was led by an 8.6% slump in the region that includes Arizona and Nevada, followed by a 5.6 % retreat in the area that includes Florida, the agency said in a report today. Prices nationwide fell 0.3% from December. (Bloomberg)

Portugal: Says GDP will shrink as spending declines. Gross domestic product will fall 0.9% in 2011 following a 1.4% increase last year, according to Portugal's stability and growth program released. The forecast is less than the 1.3% contraction predicted by the Bank of Portugal in January and compares with an outlook of 0.2% growth included in the budget released last year. The new plan says the economy will expand 0.3% next year, 0.7% in 2013 and 1.3% in 2014. (Source: Bloomberg)

Japan: Cash at central bank to hit record on crisis steps. Japan's central banks pumped a record amount of funds into the financial system since March 11 to calm markets and soften the economic impact of the earthquake and tsunami. Lenders' deposits with the central bank will jump an estimated 146% to an all-time high of JPY 43.6tr (USD 539b), from JPY 17.7tr the day before the temblor struck, the Bank of Japan said in a release in Tokyo. (Source: Bloomberg)

Taiwan: Jobless rate declined to a 28-month low as the island's economic expansion encouraged recruitment, bolstering the case for higher borrowing costs. The seasonally adjusted rate fell to 4.59% in February from 4.71% in January, the statistics bureau said in Taipei. (Source: Bloomberg)             

20110323 0929 Malaysia Corporate Related News.

KLCI chart reading : side way range bound

TNB to build gas-fired power plant in Sabah
Malaysia's national power producer Tenaga Nasional (TNB) plans to build a 300-megawatt gas-fired power plant in Sabah, chief executive Officer Datuk Seri Che Khalib Mohamad Noh said yesterday. The plan to build a gasbased plant comes after Malaysia's federal and Sabah state governments scrapped a plan to build a coal-fired power plant.Che Khalib said TNB has received in-principle approval to build the plant. "It will be a gas-fired plant to replace the coal-based one that was being planned. We are looking to do it either through piped gas of LNG." The company is currently assessing whether piping in the gas from another part of the state or importing it in its chilled form as liquefied natural gas was the best option economically, he added. (BT)

Leader ends pact for joint venture Leader Universal Holdings has terminated a pact with two parties to set up a joint venture in Saudi Arabia. Leader previously signed a deal with Al-Ghazalah Development Co and Suasana Daya SB to set up a company in Saudi Arabia to sell and supply cables and related accessories. The termination was due to a change of plan by the parties concerned. (BT)

SP Seta raises RM884m from share placement
SP Setia, the biggest housing developer in Malaysia by market share raised RM884.6m from a share placement with proceeds earmarked for funding current projects and future expansion. The issue price has been fixed at RM5.78 per share, representing a discount of about 5.25% to SP Setia’s five-day volume-weighted average market price of RM6.10. The exercise involves book-building and issuance of some 153m new shares, or about 14.99% of SP Setia’s issued and paid-up share capital as of 21 March. (MalaysianReserve)

Syabas invests RM15m on new pipe network to meet demand
Syarikat Bekalan Air Selangor SB (Syabas) has invested around RM115m for the alternative pipe network system to cope with rising demand for water supply. Chief executive Datuk Ruslan Hassan said the new network would connect the water distribution system to the Sungai Semenyih and Sungai Langat water treatment plants and the first, second and third phases of the Selangor water distribution plant. (MalaysianReserve)

Ramunia signs FPSO deal
Ramunia Holdings has signed an agreement with Drydocks World-Dubai LLC and NTM Refection II AS for a floating production, storage and offloading (FPSO) deep producer vessel, known as the MT Laurita. The arrangement would provide the company with an opportunity participate in the development of marginal oilfields and deepwater fields in Malaysia and the region. The arrangement also presents an immediate opportunity for Ramunia to participate in any direct negotiations, invitation to bids and requests for new proposals for FPSOs, by Malaysian and regional oil companies. It also planned to expand into the offshore floating business in the upstream oil and gas sector to take advantage of the significant spending on the domestic oil and gas sector. (Starbiz)

Genting Plantations: ACGT Aims to Reduce Oil Palm Breeding cycle by 50%. ACGT Sdn Bhd, a unit of Genting Plantations Bhd, aims to reduce oil palm long breeding cycle by 50% to six years from 12 years via its genomics-based marker-assisted selection technology. The breakthrough would accelerate development and commercial release of oil palm seeds without any genetic modification. (Source: Bernama.com)

MAHB: Penang airport upgrade going smoothly. The RM250m upgrade of the Penang International Airport is 15.7% complete, while the target date for the whole project to be completed remains June next year. (Source: Business Times)

Benalec: Beachfront land for sale. Benalec Holdings Bhd is shaping up to be a major landowner and developer, as it will receive some 177.3 acres of land in Melaka in exchange for reclamation works. (Source: The Edge Financial Daily)

Ta Ann, Jaya Tiasa: To increase plywood output. Ta Ann Holdings Bhd and Jaya Tiasa Holdings Bhd, will increase plywood production by 15% and 50% respectively after winning orders from Japan to help with the country's reconstruction following its earthquake and tsunami. (Source: Business Times)

Utilities: Syabas invests in new pipe network. Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) has invested around RM115m in the alternative pipe network system to cope with rising demand for water supply. The new network would connect the water distribution system to the Sungai Semenyih and Sungai Langat water treatment plants and the first, second and third phases of the Selangor water distribution plant. (Source: The Star)

20110323 0901 Global Market Related News.

 Chart reading : correction range bound little downside biased.
Chart reading : correction range bound downside biased. 
Chart reading : correction range bound downside biased. 
Chart reading : correction range bound downside biased.

Oil : Oil rises as Yemen unrest escalates, dollar falls
NEW YORK, March 22 (Reuters) - Oil prices rose on Tuesday as unrest in Yemen threatened to crimp energy exports from the Gulf region and potentially spill over into neighboring Saudi Arabia.
French oil giant Total  warned buyers of liquefied natural gas from its Yemen LNG project that shipments from the country could face cuts due to escalating political unrest, although they remain normal for now.

Brent rises above $116 as Yemen unrest heightens supply fears
SINGAPORE, March 23 (Reuters) - Brent crude rose as much as 0.6 percent on Wednesday, consolidating gains above $116, as an intensifying unrest in Yemen highlighted the security risks facing oil output from the Arabian peninsula, home to the world's biggest oil fields.
"The market is still very vulnerable to further disruptions to supply," said Tetsu Emori, a Tokyo-based commodities fund manager at Astmax Investments. "People are quite nervous about the current turmoil spreading to Saudi Arabia."      

Edge higher on weather in thin, choppy trade
WINNIPEG, Manitoba, March 22 (Reuters) - U.S. grains and soybean futures edged higher on Tuesday, reversing earlier losses as light trading caused volatility and some concerns about crop weather underpinned support.
"Corn is just going to be a choppy affair for the short term," said Shawn McCambridge, analyst at Prudential Bache Commodities in Chicago. "We don't really have a fresh dominant feature to provide better direction.

Gold steady on Middle East support; momentum weak
SINGAPORE, March 23 (Reuters) - Gold prices steadied on Wednesday, as escalating unrest in the Middle East and North Africa underpinned the safe-haven demand, but the rise lacked momentum due to easing fears over Japan's nuclear crisis and a modest rebound in the dollar.
"Gold is still taking its cue from the situation in the Middle East," said Ong Yi Ling, an analyst at Phillip Futures, adding that it could increase safe-haven flows into the precious metal.

Shares down, oil up on Japan, Middle East worries
SINGAPORE, March 23 (Reuters) - Asian shares fell on Wednesday, with Tokyo's Nikkei shedding more than 1 percent, and oil rose as investors worried about Japan's nuclear crisis in Japan, violence in Libya and unrest in the Middle East.
"It's fairly evident that while we have had added strength in our market, there is still caution out there, with the view that markets are not going to race up in any great hurry," said Jamie Spiteri, senior dealer at Shaw Stockbroking in Australia. 

COMMODITIES: Oil up; commods volumes thin on econ growth worry
NEW YORK, March 22 (Reuters) - Oil rose more than 1 percent for a second straight day on Tuesday, but volumes remained thin as investors worried about how Middle East turmoil and Japan's nuclear crisis would affect world economic growth.
"There is a tremendous amount of uncertainty and multiple black swan events," said Stephen Schork, president at the Schork Group in Villanova, Pennsylvania. "Black swan events" are occurrences that deviate far beyond market expectations and are extremely hard to predict. 

GLOBAL MARKETS: Shares down, oil up amid Japan, Middle East worries
SINGAPORE, March 23 (Reuters) - Asian shares fell on Wednesday, with Tokyo's Nikkei shedding nearly 2 percent, and oil ticked up as investors fretted about the possible repercussions of a nuclear crisis in Japan, violence in Libya and unrest in the Middle East.
"It's not that the market is ignoring fundamentals," said Takashi Hiroki, chief strategist at Monex Inc. 

Corn (Source: CME)
US corn futures finish little changed as traders wait for the government to issue highly anticipated crop reports next week. The USDA is slated to estimate spring plantings and quarterly grain supplies March 31. "We're just kind of biding our time until we get to those reports," says Shawn McCambridge, analyst for Prudential Bache. Market participants are nervous about how much corn farmers will sow because season-end supplies are expected to reach a 15-year low this year. CBOT May corn rises 1/4c to $6.86 3/4 a bushel.

Wheat (Source: CME)
US wheat futures settle slightly higher on concerns that persistent dryness will hurt output in the Plains. Hard red winter wheat, a variety used to make bread, is expected to stay dry for the next week after struggling without significant moisture since planting last fall. Modest rainfall last week in Kansas, the country's top wheat-producing state, helped improve the product but much more is needed, federal officials say. CBOT May wheat ends up 1 1/4c at $7.22 1/4 a bushel, KCBT May rises 3c to $8.45 and MGE May slips 3 1/4c to $8.66.

Oats (Source: CME)
Oat futures slumped on profit-taking after reaching an eight-session high. Oats for May delivery dropped 8 cents, or 2.3%, to $3.42 a bushel.

Disaster In Japan: Radiation In Food Rises - Higher Levels In Tokyo Spark New Concerns (Source: CME)
Authorities are likely to cast a much wider net for possible food contamination in Japan after elevated levels of radioactivity were discovered in more milk and spinach near Tokyo Electric Power Co.'s stricken Fukushima Daiichi nuclear plant Sunday, drawing intense scrutiny over the safety of the nation's agricultural products. Early Monday, the Fukushima prefecture was distributing bottled water to the village of Iidate, about 20 miles from the plant, after radioactive iodine-131 was found in tap water. The level, three times the suggested daily limit for humans to ingest, was not enough to cause immediate health risks but would be problematic over an extended period, officials said. Compounding matters, the discovery of higher-than-standard levels of iodine-131 in shungiku, or garland chrysanthemum, sold in Tokyo may stoke fears that contamination of the nation's food supply has expanded far beyond the perimeters of the nuclear facility.
The search for such elevated levels is being hampered by a shortage of equipment and facilities necessary for accurately measuring radioactivity in food. Also slowing the process is the absence of a central authority that can oversee the wide-reaching investigation and decide what steps should be taken. The radiation levels are too low to have a health impact, Japanese officials said. But they represent a blow to another part of Japan's economy resulting from the March 11 earthquake and tsunami and the resulting crisis at the Fukushima Daiichi plant. Chief Cabinet Secretary Yukio Edano said Sunday that elevated radioactivity was detected in raw milk collected from four locations in Fukushima prefecture and one spinach sample in neighboring Ibaraki prefecture. From one milk sample from Iidate -- the same village with the tainted water -- 5,200 becquerel per kilogram of iodine-131 was detected, about 17 times the 300-becquerel limit set by law.
From a sample from the town of Kunimi about 40 miles northwest of the plant -- the most distant among the four locations -- 1,400 becquerel per kilogram of iodine-131 was detected. Even if consumed, these levels "don't affect human health," Mr. Edano said, adding that Japan's radioactivity standards for food are very strict. Any impact on Japan's agricultural sector will mostly be concentrated on the domestic market. Japan imports far more food than it exports, and even some of the most basic ingredients in Japanese cuisine, such as soybeans, are mostly imported. In 2009, the total value of the country's food imports stood at $53.5 billion, while its exports came to only $3.27 billion, said the Japan External Trade Organization. Later Sunday evening, Tochigi prefecture said it had detected higher-than-standard amounts of iodine-131 in spinach at seven locations.
The Tokyo government also said it discovered higher-than-standard iodine-131 in garland chrysanthemum -- a leafy vegetable commonly used in Japanese food -- that was grown in Chiba prefecture, north of the capital.

Reuters Summit-Singapore SMX eyes May launch of iron ore futures
SINGAPORE, March 21 (Reuters) - Singapore Mercantile Exchange plans to launch an iron ore futures contract in early May following expected regulatory approvals, the exchange's top executive said on Monday.
SMX, controlled by India's Financial Technologies, plans to launch a cash-settled iron ore futures contract, based on the iron ore index by data provider Metal Bulletin which uses a 62 percent iron content benchmark.

China securities regulator OKs Dalian coke futures
SHANGHAI, March 22 (Reuters) - China's securities regulator said on Tuesday it had granted approval to the Dalian Commodity Exchange to launch coke futures, the latest commodity derivative to be launched in the country.
The announcement, released by the China Securities Regulatory Commission (CSRC) on its website, confirmed a Reuters source-based report last week.

UK FSA does not act on commods but says exchanges do
LONDON, March 21 (Reuters) - Britain's financial regulator has not used its powers to intervene in commodity markets to close or reduce trading positions since the start of 2010, a Reuters Freedom of Information (FOI) request has shown.
Instead it says exchanges have used their powers to caution players but did not know how many times that had happened.

U.S. home sales tumble, prices are near 9-year low
WASHINGTON, March 21 (Reuters) - Sales of previously owned U.S. homes plunged in February and prices hit their lowest level in nearly nine years, indicating a housing market recovery was still a long way off.
The National Association of Realtors said on Monday sales fell 9.6 percent month over month to an annual rate of 4.88 million units, snapping three straight months of gains. The percentage decline was the largest since July.

Japan supply woes hit Toyota, Sony; Rio frets
TOKYO, March 22 (Reuters) - Sony Corp  cut output at five more plants and Toyota Motor  further delayed restarting its Japanese assembly lines, as the country's catastrophic earthquake plays havoc with the global supply of parts and products.
Global electronics and autos companies have been hardest hit by the turmoil, but in an illustration of how the ripples are spreading, global miner Rio Tinto   warned the disruptions posed a threat to its expansion plans.

PRECIOUS-Gold set for fifth day of gains, M.East in spotlight
LONDON, March 22 (Reuters) - Gold remained on track for a fifth day of gains on Tuesday, fed by the broad weakness in the dollar and by investor demand for safe-haven assets as ongoing Western air strikes on Libya stoked tensions in the Middle East.
"I wouldn't interpret too much into the moves of the last few moments, because volatility, not only in precious metals, but in all of the commodities is so extremely high at the moment," said Commerzbank analyst Daniel Briesemann.

FOREX-Dollar at 15-mth low; sterling up on CPI jump
LONDON, March 22 (Reuters) - The dollar fell to a 15-month low against a basket of currencies on Tuesday, with sterling among the biggest gainers after a rise in UK inflation increased the chances of a UK interest rate hike sooner rather than later.
"This makes it slightly more likely that they (BoE) will increase rates in May, but only slightly," said Paul Robinson, chief sterling strategist at Barclays Capital, referring to the inflation jump.

U.S. corn edges lower amid lack of fresh fundamentals
BEIJING, March 22 (Reuters) - U.S. wheat, corn and soybean futures extended morning losses slightly by 0338 GMT due to a lack of fresh fundamentals guiding market trading, analysts said. "CBOT corn may be overbought, (and) there are no fresh fundamentals," said Kazuhiko Saito, chief commodities analyst with Fujitomi Co. Ltd. futures trading company in Tokyo.

U.S. corn edges lower amid lack of fresh fundamentals
BEIJING, March 22 (Reuters) - U.S. wheat, corn and soybean futures extended morning losses slightly by 0338 GMT due to a lack of fresh fundamentals guiding market trading, analysts said. "CBOT corn may be overbought, (and) there are no fresh fundamentals," said Kazuhiko Saito, chief commodities analyst with Fujitomi Co. Ltd. futures trading company in Tokyo.

Stocks up on Japan progress; dollar pressured
SINGAPORE, March 22 (Reuters) - Japanese stocks jumped more than 4 percent  amid reports of progress in stabilising an earthquake-damaged nuclear plant and the yen edged up, putting traders on heightened alert for more central bank intervention.  "Shares are bouncing with the Japan nuclear fear abating as the latest news reports point to steady progress on repairs at the nuclear plant site," said Kwak Joong-bo, a market analyst at Samsung Securities in Seoul.

Indonesia rubber output seen up over 20pct at 3.6 mln T by '15-assoc
JAKARTA, March 22 (Reuters) - Indonesia, the world's second-largest rubber producer, will boost its output by more than 20 percent to 3.6 million tonnes by 2015, the Indonesian Rubber Association (Gapkindo) said on Tuesday.
Within five years, domestic consumption of rubber in Southeast Asia's largest economy should jump to 20 percent of total production, Suharto Honggokusumo, executive director of Gapkindo told Reuters.

Brent crude supported at $115 as MidEast unrest spreads
SINGAPORE, March 22 (Reuters) - Brent crude futures were supported near $115 on Tuesday by supply concerns triggered by the spreading unrest in the Middle East, while uncertainty about demand from the world's No. 3 consumer Japan capped gains.
"This will reduce the buffer of excess capacity and increase the oil market's vulnerability to any new supply shocks which may emerge. "This may see a risk premium being maintained in the oil price for some time."

Japan to release 22-days of oil reserves-trade ministry
TOKYO, March 22 (Reuters) - Japan will allow the release of an additional 22 days worth of crude oil from privately held reserves, or about 9.24 million kilolitres (58.1 million barrels), the trade ministry said.
The latest release of oil reserves, announced by the ministry on Monday, aims to ease energy shortages in northern Japan, which was devastated by a massive earthquake and tsunami on March 11.

Corn ends higher, anxiety over China rumors
CHICAGO, March 21 (Reuters) - Corn futures ended higher in volatile trading on Monday, with expectations still high for confirmation of rumored U.S. corn sales to China, which rallied the market by 11 percent over two days last week.
"There's a possibility it could be for China but there's nothing confirmed. China is always testing the water so there is a possibility it could be for them," said Terry Reilly, analyst for Citigroup, of the Monday sale.

Gold inches up on oil, MidEast; Japan eyed
SINGAPORE, March 22 (Reuters) - Gold prices edged higher on Tuesday on concerns about inflation triggered by high oil prices and an increased safe-haven appeal amid growing tensions in the Middle East following western powers' air strikes on Libya.
"The tensions in Libya and the overall Middle East and North Africa region is supportive of gold prices. There is little doubt that gold would test a new high in the near future," said Li Ning, an analyst at Shanghai CIFCO Futures.

Asia stocks rise; risk trades hit dollar
SINGAPORE, March 22 (Reuters) - Japanese stocks jumped nearly 4 percent on Tuesday amid reports of progress in stabilising an earthquake-damaged nuclear plant, and the yen was broadly weaker on the prospects for further intervention by major central banks.
"People are getting a bit more relaxed, the Japan situation seems to be getting under control and it is a case for rebuilding now," said Martin Angel, a dealer at Patersons Securities in Australia.

Japan Weighs Postwar-Style Reconstruction Agency, Injects Cash (Source: Bloomberg)
Japan may set up a reconstruction agency to oversee earthquake repairs, while data showed the central bank pumped record liquidity into lenders, as the nation grappled with its worst disaster since World War II.

U.S. Jan. Home Prices Fall 0.3% Vs Previous Month, FHFA Says (Source: Bloomberg)
January home prices in the U.S. fell 0.3 percent from December, the Federal Housing Finance Agency said on its website. Prices nationwide fell 3.9 percent in the 12 months ended in January, the agency said.

New Zealand on Edge of Recession After Christchurch Tremor Erodes Optimism (Source: Bloomberg)
New Zealand will probably report that growth nearly stalled in the final three months of last year, leaving the economy on the brink of a recession before a Feb. 22 earthquake killed more than 160 people.

U.K. Inflation Accelerates More Than Forecast to Fastest Pace in Two Years (Source: Bloomberg)
U.K. inflation accelerated more than economists forecast in February to the fastest pace in more than two years, adding pressure on the Bank of England to increase its benchmark interest rate.

Euro Drops for Second Day Ahead of EU Summit on Debt, Portugal Budget Vote (Source: Bloomberg)
The euro weakened for a second day on speculation European leaders meeting this week will struggle to create a permanent solution to the region’s debt crisis.

Sony Shuts More Plants, Toyota Extends Production Halts as Recession Looms (Source: Bloomberg)
Sony Corp. (6758) shut five more plants and Toyota Motor Corp. (7203) extended production halts, 11 days after an earthquake and tsunami brought scores of Japanese factories to a standstill and threatened to spark a recession.

Oil Near Two-Week High in New York on Libyan Conflict, Middle East Turmoil (Source: Bloomberg)
Oil traded near a two-week high in New York amid concern that continued conflict in Libya threatens to prolong supply disruptions and that escalating turmoil may curtail Middle East shipments.

Germany Beats Europe in Stocks on Profit Growth After Worst Loss Since May (Source: Bloomberg)
Profits at German companies are headed for the highest level on record, keeping stock valuations below the rest of Europe even after the DAX Index surged at twice the region’s rate.

20110323 0857 Soy Oil & Palm Oil Related News.

Soy Oil chart reading : side way range bound little downside biased.


Soybeans (Source: CME)
US soybean futures finish slightly higher as concerns about plantings spark a recovery from early losses. Market participants are nervous farmers won't sow enough acres this spring to replenish tight supplies, says Sid Love, analyst for Kropf & Love Consulting. Traders are reluctant to sell too aggressively before the USDA issues plantings estimates March 31. "We still don't know what the acres are," Love notes. CBOT May soybeans rise 2 1/2c to $13.65 1/2 a bushel.

Soybean Meal/Oil (Source: CME)
Soymeal closes flat at $366.40/short ton and soyoil slips 0.02c to 55.86c/pound.

Argentina: 16 Arrest Warrants For Tax Evasion On Grain Sales (Source: CME)
Argentina has issued arrest warrants against 16 individuals for alleged black-market sales of soybeans and corn worth about 430 million pesos ($108 million), the national tax agency Afip said. The individuals involved were not named. The new arrest warrants are in addition to eight previously issued for an alleged conspiracy to avoid taxes on 650,000 metric tons of grain sales through a network of shadow companies, Afip said. The charges follow an investigation conducted by Afip agents in Cordoba and Mendoza provinces. The illicit network allegedly grew at a rapid pace in recent years, incorporating two grain silo and processing plants, two poultry production farms, and 70 long-haul trucks and imported cars for the individuals involved, Afip said. The operation also involved grain exports to Chile, according to the agency.
Afip has launched a host of investigations against the farm sector -one of the country's most important industries- amid accusations by the government of widespread tax evasion. Afip has accused a number of the leading grain exporters of dodging taxes by triangulating their operations through overseas companies and other moves to avoid booking profits to their local units.

Palm oil drops 3.7 pct on output prospects, stronger ringgit
KUALA LUMPUR, March 22 (Reuters) - Malaysian palm oil tumbled 3.7 percent as investors unwound positions on expectations of higher production this month and a stronger ringgit hurting refining margins.  "The fundamentals are turning bearish. Production is set to jump this month and demand is not reacting in the same time. The stronger ringgit just squeezes margins," said a trader with a foreign commodity brokerage.

China March soy imports seen up at 3.9 mln T-MOFCOM
BEIJING, March 22 (Reuters) - China's commerce ministry has revised the country's soy imports in March to 3.9 million tonnes, up from earlier estimates of 3.65 million tonnes.
The March figure is 68 percent higher than imports in February, when imports fell to the lowest since November 2008, due to poor crushing margins. Beijing has taken a series of measures to cool domestic prices of edible oils.

ADM to expand Canada canola plant
WINNIPEG, Manitoba, March 21 (Reuters) - ADM Agri-Industries, a subsidiary of U.S. agrifood company Archer Daniels Midland , said on Monday it will double seed receiving and storage capacity at its canola-processing plant in Lloydminster, Alberta.
The expansion is the most recent in a series of moves by crushers that reflects strong demand for the oilseed, which is Canada's second-biggest crop after spring wheat.

Rain returns to plague Brazil soy harvest
SAO PAULO, March 21 (Reuters) - After a few dry days last week, rains have returned to foil Brazilian soybean farmers' efforts to harvest the new crop, independent forecasters Somar said on Monday.
Brazil is in the peak of what looks like a record harvest of roughly 70 million tonnes of soybeans, but rains in the last month have been slowing harvest and in some cases have caused losses due to flooding in mature fields before harvest.

Argentine gov't sees soy crop at 50 mln tonnes
BUENOS AIRES, March 21 (Reuters) - Argentina's 2010/11 soy output should be 50 million tonnes, the Agriculture Ministry said on Monday in its first official estimate for production of the oilseed in the world's No. 3 supplier.
The South American country is also the world's biggest exporter of soyoil and soymeal. Farmers have started to bring in beans planted on a sowing area of 18.6 million hectares.

Argentine gov't sees soy crop at 50 mln tonnes
BUENOS AIRES, March 21 (Reuters) - Argentina's 2010/11 soy output should be 50 million tonnes, the Agriculture Ministry said on Monday in its first official estimate for production of the oilseed in the world's No. 3 supplier.
The South American country is also the world's biggest exporter of soyoil and soymeal. Farmers have started to bring in beans planted on a sowing area of 18.6 million hectares.