Wednesday, April 13, 2011

20110413 1825 FCPO EOD Daily Chart Study.

FCPO closed : 3348, changed : -25 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : weakenning, buyer reducing position.
Support : 3350, 3300, 3270, 3250 level.
Resistance : 3420, 3450, 3470, 3500 level.
Comment :
FCPO closed recorded small loss with lower volume traded (partially are roll over activities ahead of 15th change month) while soy oil overnight plunge severly lower down about 3% and currently rebounding little higher. News wise, time: 17.55 Reuters reported that China to import more palm oil ahead of warmer weather.
Daily chart formed an up doji bar candle positioned at middle Bollinger band level after market opened gap down, tested lower support and recovered upward tested resistance to closed near the high of the day.
Chart wise, market is likely to trade side way range bound testing support and resistance level with a minor break down(purely a wild guessing).
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.

20110413 1747 FKLI EOD Daily Chart Study.

FKLI closed : 1535.5 changed : +15 points, volume : higher.
Bollinger band reading : correction range bound little upside biased.
MACD Histrogram : falling lower, buyer seller seems battling.
Support : 1530, 1515, 1500, 1485 level.
Resistance : 1540, 1550, 1565, 1580 level.
Comment :
Technical rebound FKLI closed recorded gains with ultra high volume changed hand doing almost par with cash market while regional market ended higher.
Daily chart formed an up bar candle with lower shadow closed above middle Bollinger band level after market opened 1 tick lower, moved 6 points higher and plunged down all the way triggering most long position stop loss order before recovered all losses and surged higher to closed near the higher of the day recorded big gains.
Technical chart reading  suggesting a correction range bound little upside biased market development testing support and resistance level with MACD indicator having negative cross down.
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.

20110413 1525 Global Market & Commodities Related News.

Asia stocks largely unchanged, yen resumes fall
SINGAPORE, April 13 (Reuters)- - Asian stocks were nearly unchanged on Wednesday, as profit taking in resource-related shares was offset by gains in technology shares.
"Investors seem to remain uncertain about what to buy as they are not sure how pessimistic or optimistic companies will be about their forecasts after the quake," said Yumi Nishimura, a senior market analyst at Daiwa Securities.

High oil denting demand in fragile world economy
LONDON/WASHINGTON, April 12 (Reuters) - High oil prices are beginning to putting the brake on the rapid pace of global economic growth and erode demand for fuel, a leading energy agency said on Tuesday in a report that added to a steep selloff in crude oil prices.
Oil prices have jumped 25 percent in the past three months to reach $127 a barrel on Monday, their highest in over two-and-a-half years, restarting a long rally driven in part by strong demand from rapidly growing emerging economies.

Goldman rocks oil for second day, sees $105 Brent
NEW YORK, April 12 (Reuters) - Goldman Sachs  rocked oil markets for a second day Tuesday by calling for a nearly $20 fall in Brent crude oil , saying speculators had pushed prices ahead of fundamentals.
It was the second warning of a steep market reversal from the long-term commodity bull in as many days. On Monday, Goldman recommended clients close a trade heavily weighted towards U.S. crude futures.

Saudi cuts oil production on weak demand -sources
DUBAI/KHOBAR, Saudi Arabia, April 12 (Reuters) - Top oil exporter Saudi Arabia has quietly cut production by around 500,000 barrels per day (bpd), two Saudi-based industry sources said, from its output increase in March when it offset lost Libyan crude.
The kingdom produced 9-9.2 million bpd during at least part of March, a third industry source said.

U.S. soy rises, corn steady after steep losses
SINGAPORE, April 13 (Reuters) - U.S. soy rose 0.6 percent on Wednesday, regaining some ground after a steep decline in the last session triggered by advise from Goldman Sachs to take profits in commodities, while corn was steady, supported by tight supplies and strong demand.
"It is possible that today we see some moderation in risk aversion of last night," said commodity strategist Luke Matthews of the Commonwealth Bank of Australia.

Tanzanian coffee prices fall on poor quality
DAR ES SALAAM, April 12 (Reuters) - Tanzania's coffee prices fell at last week's auction due to poor quality produce as farmers in the east African nation sell their last remaining harvests of the season, traders said on Tuesday.
A few bags of top-grade coffee continued to fetch record high prices, but most of the coffee on offer was of low quality.

Brazil, Philippines to export more sugar to U.S.
NEW YORK, April 12 (Reuters) - Top sugar producer Brazil and the Philippines will be allowed to export more sugar to the United States to offset a shortage caused by a hard freeze which struck the cane crop in Florida.
The U.S. Agriculture Department announced on Monday it was reassigning 294,835 tonnes originally allocated to domestic producers to countries exporting sugar to the United States.

Cocoa groups hope for quick restart Ivorian trade
LONDON, April 12 (Reuters) - Cocoa industry groups on Tuesday welcomed a call for peace by top grower Ivory Coast's internationally recognised president, Alassane Ouattara, and said they hoped for a swift resumption of trade.
"We also welcome the EU decision to lift the EU sanctions on the ports of Abidjan, San Pedro, and the CGFCC (Coffee and Cocoa Trade Management Committee)," said a joint statement from the European Cocoa Association and the Federation of Cocoa Commerce.

China sells 131,720 T feed wheat, weekly corn offer lower
BEIJING, April 12 (Reuters) - The central government sold 131,720 tonnes of state reserves of low quality wheat for animal feed production to ease tight corn supplies, while reducing the volume of corn offered at weekly auctions by as much as 64 percent.
The feed wheat, from a total of 306,098 tonnes offered on Tuesday, was sold at an average of 1,823 yuan ($278.828) per tonne, 2 percent higher than last week's price, reflecting interest from feed mills.

Shanghai copper falls on Japan crisis, China concerns
SINGAPORE, April 13 (Reuters) - Shanghai copper fell nearly 1 percent on Wednesday, tracking London's 2.3 percent drop in the previous session, as investors weigh strong fundamentals against short-term demand headwinds in quake-hit Japan and top consumer China.
"Copper lacks momentum but won't fall much as lower prices attract buyers," said Li Ye, an analyst at Minmetals Futures.

Gold regains strength after fall; ETF holdings slip
SINGAPORE, April 13 (Reuters) - Gold bounced higher on Wednesday after posting its biggest fall in a month in the previous session, shrugging off falls in exchange traded fund holdings and gaining support on inflation concerns in major gold buyer China.
"You can say that we're going through a consolidation phase. Physical demand is still certainly out there," said Jonathan Barratt, managing director of Commodity Broking Services.

20110413 1144 Global Market & Commodities Related News.

GLOBAL MARKETS: Asian shares inch up, yen slips
Singapore, April 13 (Reuters)- - Asian shares inched higher in early trade on Wednesday, while the yen may head lower as some investors said the position unwinding due to risk aversion would be shortlived.
"At this stage, we don't see reason to believe that the early week price action marks the start of a broader 'risk-off' move ... This latest dip is an opportunity to reset or extend longs (against the yen)," analysts at BNP Paribas wrote in a client note.  

OIL: Crude extends falls for 3rd day on demand concerns
TOKYO, April 13 (Reuters) - U.S. crude futures extended their declines into a third day on Wednesday, falling to $106 a barrel, down more than 6 percent from a 32-month peak marked this week on concerns -- heightened by a warning from Goldman Sachs -- that prices had risen too far and could curb demand.
U.S. crude's 5.8 percent slide over the past two sessions was the biggest two-day percentage decline since May 2010, when the debt crises in Greece and the wider euro zone pulled down commodities.

NATURAL GAS: Natural gas ends down, cool weather limits selling
NEW YORK, April 12 (Reuters) - U.S. natural gas futures ended lower on Tuesday, pressured by concerns about high supplies, but cool northern tier weather and warm southern temperatures helped limit the downside.
"Prices couldn't stay below $4 for long, so I think there's good support there, and the cool forecast should help support prices, but I think we're stuck in a trading range," a Pennsylvania trader said, noting supplies were comfortable.

EURO COAL: Prices fall $2-3 with oil, China starts buying
LONDON, April 12 (Reuters) - European and South African physical coal prices fell by $2-3 a tonne on Tuesday as oil prices dropped by $3-4, traders and utilities said.
"Coal's fallen purely in line with oil. With a $4 drop in oil, coal had to move down," one European trader said.

COMMODITIES: Slide broadly, oil falls after Goldman call
NEW YORK, April 12 (Reuters) - Commodities ended sharply lower on Tuesday, posting their steepest daily fall in a month after more bearish comments on oil from Goldman Sachs triggered a second day of widespread selling.
Oil closed down $3 a barrel in both London and New York after Goldman, a long-time commodities bull, said prices had gotten ahead of fundamentals. Warnings from the International Energy Agency (IEA) and OPEC that high prices would erode global demand also weighed on the market.

20110413 1143 Global Economic Related News.

Indonesia: Keeps interest rate unchanged as inflation slows
Indonesia left interest rates unchanged for a second consecutive month after inflation slowed, saying the rupiah’s gains will help contain price pressures. Bank Indonesia kept its benchmark reference rate at 6.75%. The central bank raised borrowing costs in February, its only increase since 2008. Policy makers have maintained fuel subsidies to damp inflation and let the Rupiah rise to its strongest since 2004 to counter import costs. (Bloomberg)

Canada: Keeps key rate 1%, citing faster growth, dollar
The Bank of Canada said the economy is expanding faster than it previously forecast, while cautioning a strengthening Canadian dollar could dampen future inflation, which may delay increases in interest rates. The central bank today kept its benchmark target rate for overnight loans between commercial banks at 1% where it has been since September. The bank raised its 2011 growth forecast to 2.9% from 2.4%, saying the economy will reach full output in the middle of 2012. (Bloomberg)

UK: Inflation unexpectedly slows as stores cut food prices
UK inflation unexpectedly slowed in March for the first time in eight months as discounting at supermarkets prompted food prices to plunge. Consumer prices rose 4% from a year earlier after a 4.4% increase in February, the Office for National Statistics said. The cost of food fell the most in almost four years. The pound dropped after the report. The data may provide some relief to the Bank of England after it held off raising its key interest rate this month to aid the economy during the government’s fiscal squeeze. While inflation is still twice the central bank’s target, the National Institute of Economic and Social Research said the recovery remains “uncertain.” (Bloomberg)

UK: Retail sales plunged most on record in march, brc says
UK retail sales dropped by a record in March as accelerating inflation squeezed households’ finances and concerns about employment prompted consumers to cut back, the British Retail Consortium said. Sales at stores measured by value fell 1.9% from a year earlier, partly due to the timing of Easter in 2010, the Londonbased BRC said. That’s the biggest drop since the series began in 1995 and compares with a 1.1% gain in February. On a like-for-like basis, which excludes new store openings, sales fell 3.5%, the most since 2005. (Bloomberg)

German: Inflation unexpectedly accelerated in March on oil
German inflation unexpectedly accelerated to the fastest pace in two and a half years in March after energy prices jumped. The inflation rate, calculated using a harmonized European Union method, increased to 2.3 percent from 2.2% in February, the Federal Statistics Office in Wiesbaden said, revising up its March 29 estimate of 2.2%. That’s the highest since October 2008. From January, consumer prices rose 0.6%, more than the initial 0.5% reading. Surging energy costs are fueling inflation just as booming exports and falling unemployment boost growth in Germany, Europe’s largest economy. (Bloomberg)

Spain: Underlying inflation slows for first time in a year
Spain’s underlying inflation rate slowed in March for the first time in almost a year. Core consumer prices, which exclude energy and fresh food, gained 1.7% from a year earlier, after a 1.8% increase the previous month, the National Statistics Institute in Madrid said. That was the first decline since April last year. The headline rate, based on European Union calculations, was 3.3%, in line with an initial estimate published on 30 March. (Bloomberg)

US: Trade deficit narrows less than forecast
The U.S. trade deficit narrowed less than forecast in February, indicating soaring commodity prices hurt the world’s largest economy at the start of the year. The gap shrank 2.6% to USD45.8 bn from a larger- thanpreviously- estimated USD47bn in January, according to figures from the Commerce Department today in Washington. Another report showed the cost of imported goods jumped in March by the most in almost two years. Economists at Morgan Stanley and Barclays Capital Inc. were among those cutting estimates for firstquarter growth after the data showed exports dropped along with imports, failing to make up for a slowing in consumer spending. The earthquake and tsunami in Japan may further reduce trade in coming months after parts shortages caused some factories to close. (Bloomberg)

U.S: Deficit to rise to largest among major economies, IMF says and should narrow it now rather than face tough adjustments in the next two years. The U.S. shortfall will reach 10.8% of its gross domestic product this year, ahead of Japan and the U.K., the Washington-based IMF said in a report released. It estimates that President Barack Obama will need to cut the deficit by 5 percentage points of GDP in the next two fiscal years, the largest adjustment in at least half a century, to meet his pledge of halving it by the end of his four-year term. (Source: Bloomberg)

U.S: Small-business index fell to five-month low in March, damped by a deteriorating outlook for sales, profits and the economy, a private survey found. The National Federation of Independent Businesss optimism index decreased to 91.9, the Washington-based group said. Februarys reading of 94.5 was the highest since the recession began in December 2007. (Source: Bloomberg)

Germany: Investor confidence fell more than forecast in April after the European Central Bank raised interest rates to curb inflation. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict developments six months in advance, declined to 7.6 from 14.1 in March. (Source: Bloomberg)

China: Yuan credit rating may be cut by Fitch on rising debt. Chinas credit rating for local lenders at Fitch Ratings may be cut on concern that increasing corporate and household debt is a risk to government finances. The outlook for Chinas long-term local currency issuer rating was lowered to negative from stable, Fitch said in a statement. The rating is currently AA-, it said. China, the worlds fastest-growing major economy with about USD 2.8tr in foreign-exchange reserves, has raised interest rates four times since October to fight inflation. Premier Wen Jiabao said last month that exorbitant home-price increases are a key concern as China seeks to rely more on domestic than foreign demand to power economic growth. (Source: Bloomberg)

Japan: Sees greater hit to economy as nuclear crisis deepens. Japans Economic and Fiscal Policy Minister Kaoru Yosano said the March 11 earthquake may result in a larger hit to the economy than previously seen, indicating a greater appetite for stimulus one month after the disaster. The damage to the economy may be bigger than we initially expected, Yosano told reporters in Tokyo. In addition to disruptions in the supply chain, we have the added seriousness of the situation with the nuclear power plant, he said, referring to the Fukushima Dai-Ichi crisis that official said has a severity rating matching Chernobyl in 1986. (Source: Bloomberg)

20110413 1141 Malaysia Corporate Related News.

 KLCI chart reading :
correction range bound upside biased.

Malaysian pension fund EPF says evaluating Glencore IPO subscription
KUALA LUMPUR, April 12 (Reuters) - Malaysia's Employees Provident Fund (EPF), has been approached to subscribe to the $10 billion-plus initial public offering of commodities giant Glencore, a senior official from the country's largest pension fund said on Tuesday.
Glencore is expected to kick off the much-anticipated listing this week in what could be the largest to-date in London and one of the largest in Europe.

Felda to list sugar business by July
Felda Global Ventures Holdings SB will list its sugar business on the Main Market of Bursa Malaysia by July. This will be the first business unit within the Federal Land and Development Authority Group (Felda) to be listed, Prime Minister Datuk Seri Najib Razak said in his speech at the Invest Malaysia 2011 forum yesterday. Quoting sources, Reuters had reported on Monday that the listing of its sugar business would raise about USD215mn (RM651mn) for Felda Group, which would sell about 25% to 30% of its stake in Malaysian Sugar Manufacturing Co (MSM). (Financial Daily)

CMP2 to further unlock value
Capital Market Masterplan Two (CMP2), the successor of CMP1 that was launched a decade ago, aims to further unlock the potential of the capital market estimated to reach RM5.8 trn in value over the next 10 years from the current RM2trn Internationalisation was one of the key priorities of CMP2, which sets to shift focus on Islamic finance from serving domestic needs towards tapping growth opportunities from intermediating international investment and corporate transactions. (Starbiz)

RM30bn sukuk planned for MRT
Malaysia plans to sell as much as RM20bn Islamic bonds under a programme to help finance a mass-transit railway in Kula Lumpur, a government official said. A special financing vehicle would be formed by the Government to raise funds which would be used for the country’s biggest infrastructure project to date, said the official, who couldn’t be named as details of the sale have yet to be finalized.(StarBiz)

Press Metal, partners sign deal with Sarawak Energy
Press Metal Bhd and three foreign companies, which together plan to invest some RM9.5bn in energy-intensive industries in Samalaju Industrial Park, Bintulu, have signed separate power purchase agreement (PPA) term sheet with Sarawak Energy Bhd (SEB).SEB’s chief executive officer Torstein Dale Sjotvei said Press Metal and the three companies-OM Materials, Asia Minerals Ltd and Tokuyama Corp- would require a long term supply of 1,300MW to power their plants.(StarBiz)

Favelle units win jobs worth RM90mn
Crane construction company Favelle Favco Bhd said its two wholly-owned units received four contracts in total valued at RM89.5mn to supply offshore cranes. In a Bursa Malaysia filing yesterday, it said that units Favelle Favco Cranes (M) Sdn Bhd and Favelle Favco Cranes Pte Ltd received purchase orders or letter of intents in the months of March and April from customers Keppel Fels Ltd, Aristo Oil International Services L.L.C, Perunding Ranhill Worley-Muhibbah Consortium, and Cosco (Nantong) Shipyard Co Ltd .(StarBiz)

BToto to sell half its NFO?
The gaming sector is in the spotlight once again, with the focus on Berjaya Sorts Toto Bhd (BToto). According to a Reuters report yesterday, tycoon Tan Sri Vincent Tan is mulling the sale of a 49% stake in BToto’s unlisted numbers forecast operator (NFO) for about USD 1bn (RM3.03bn) Quoting sources, Reuters said Citigroup Inc was hired as the adviser for the deal, which would include the sale of the NFO’s debt, to two private equity firms believes to be Carlyle Group and Providence Equity Partners.(Financial Daily)

Maybank says seeking BII divestment exetension
Malaysia’s biggest lender by assets Malayan Banking Bhd (Maybank) is presently in discussions with Indonesian regulators to extend a deadline to reduce its stake in Bank Internasional Indonesia (BII), its chief executive officer said yesterday. Maybank was given until end of June to cut its stake in BII to 80% from 97% currently. It has so far managed to sell 0.5% of its stake in the open market. (Financial Daily)

IRDA: MRT proposed for Iskandar Malaysia. A plan to build a 500km mass rapid transit (MRT) system has been proposed to improve the connectivity within Iskandar Malaysia, according to Iskandar Regional Development Authority (IRDA). The MRT project will be developed in five or six phases. The first phase is expected to be completed by 2020. The announcement will be made by the Prime Minister if the proposal is accepted. (Source: The Star)

CIMB: Datuk Zainal Abidin named chairman. CIMB Bank Bhd announced the appointment of Datuk Zainal Abidin Putih as chairman of the company, succeeding Tan Sri Haidar Mohamed Nor, who retired at the Banks Annual General Meeting. Zainal has been a director of CIMB Bank since July 2006 and is also the chairman of its audit committee. (Source: Business Times)

Xinhua: To make KL regional HQ. China's state media Xinhua News Agency plans to set up its Asean editorial hub in Malaysia this year and a formal announcement will be made in due course, said its Asia-Pacific president and editor-in-chief Ju Mengjun. Xinhua News Agency has seven regional hubs in the world with over 130 overseas bureaus, of which 27 are located in Asia Pacific. It has representative offices in most Asean countries at present. (Source: The Star)  

20110413 0957 Global Market Related News.

 DJIA chart reading : correction range bound upside biased.

Hang Seng chart reading : correction range bound upside biased. 

Inflation, oil prices create new challenges - IMF
WASHINGTON, April 11 (Reuters) - Soaring oil prices and inflation in emerging economies pose new risks to global recovery but are not yet strong enough to derail it, the International Monetary Fund said on Monday.
The global lender's latest health-check of world economic prospects marked a departure from recent years when its focus was on the financial crisis and recession in rich nations.

Asia Deficits Swell as Soaring Oil Makes Leaders Delay Subsidy Reductions (Source: Bloomberg)
Surging oil and food costs may swell budget deficits in Asia as governments spend on subsidies to keep consumer prices low and avoid inflation protests that helped topple regimes in the Middle East this year.

Asian Stocks Rise as Japan’s Exporters Gain; Commodity Stocks Drop on Oil  (Source: Bloomberg)
Asian stocks rose as Japanese exporters gained, offsetting declines by commodity producers on lower oil and metal prices.

U.S. Trade Deficit Narrows Less Than Forecast on Soaring Commodity Prices  (Source: Bloomberg)
The U.S. trade deficit narrowed less than forecast in February, indicating soaring commodity prices hurt the world’s largest economy at the start of the year.

Law Enforcement, Environment, Rail Set for Funding Cut in U.S. Budget Deal  (Source: Bloomberg)
The U.S. Environmental Protection Agency, high-speed rail and law enforcement are among the programs targeted for budget cuts as part of a long-fought deal to avert a government shutdown.

Treasuries Decline Before $21 Billion Note Auction, Retail-Sales Report  (Source: Bloomberg)
Treasuries declined as the U.S. prepared to sell $21 billion of 10-year notes today in the second of three debt auctions this week.

U.K. Inflation Unexpectedly Slows in March for First Time in Eight Months  (Source: Bloomberg)
U.K. inflation unexpectedly slowed in March for the first time in eight months as discounting at supermarkets prompted food prices to plunge.

Stark Says ECB Intends to Raise Its Interest Rates at ‘Appropriate’ Pace  (Source: Bloomberg)
European Central Bank Executive Board member Juergen Stark said the bank will raise interest rates and withdraw other emergency measures at an appropriate pace. “The ECB will adjust its policy interest rates and its provision of liquidity at a pace and to a degree commensurate with the evolution of risks to price stability and as appropriate to maintain an orderly and functional monetary policy transmission,” Stark said in a speech in Hong Kong today. “As with the phasing-in of non-standard measures, there are no pre-defined steps between phasing them out and exiting from very low policy interest rates.”

China’s Local Currency Credit Rating May Be Cut by Fitch on Private Debt  (Source: Bloomberg)
China’s credit rating for local lenders at Fitch Ratings may be cut on concern that increasing corporate and household debt is a risk to government finances. The outlook for China’s long-term local currency issuer rating was lowered to “negative” from “stable,” Fitch said in a statement yesterday. The rating is currently AA-, it said.

China banks to provide Minmetals $4.6 bln in financing
HONG KONG, April 12 (Reuters) - Minmetal Resources Ltd , a unit of China's biggest metals trading company, said on Tuesday that three Chinese banks will provide at least $4.6 billion in corporate debt financing for its bid to buy Equinox Minerals Ltd  .
A majority of the loan would have a tenure in excess of six years and would be partly secured by its assets, the company said in a statement posted to the Hong Kong stock exchange.

Japan supply uncertainty looms for Toyota
DETROIT, April 11 (Reuters) - Toyota Motor Corp  on Monday warned that the uncertain supply of parts from Japan could threaten its output of vehicles through July, the latest sign of trouble for the global auto industry stemming from the massive Japanese earthquake a month ago.
Ford Motor Co , meanwhile, said it would slow or shut down production in Asia in the last week of April and into May at its factories and joint ventures in the region, a step it said it did not expect would cut into second-quarter earnings.

Japan Sees Greater Hit to Economy Than First Estimated on Nuclear Crisis  (Source: Bloomberg)
Japan’s Economic and Fiscal Policy Minister Kaoru Yosano said the March 11 earthquake may result in a larger hit to the economy than previously seen, indicating a greater appetite for stimulus one month after the disaster.

Japanese Bonds Rise as Nuclear Crisis Increases Demand for Safety of Debt  (Source: Bloomberg)
Japan’s 10-year bonds advanced for the first time in six days as the nation’s nuclear crisis bolstered demand for the safety of government debt.

Japan Stocks Rise for First Time in Three Days; Carmakers Gain on Rating  (Source: Bloomberg)
Japanese stocks rose for the first time in three days led by carmakers after Nomura Holdings Inc. called the shares “oversold.”

Yen Weakens Before Euro Industrial Production, U.S. Retail Sales Reports  (Source: Bloomberg)
The yen fell against all its major counterparts before reports that economists said will show European industrial production and U.S. retail sales increased, damping demand for the safety of Japan’s currency.

Bank of Korea Says Inflation May Accelerate Faster Than Earlier Forecast  (Source: Bloomberg)
South Korea’s inflation will probably accelerate more than previously forecast while economic growth stays in line with expectations, the Bank of Korea said.

Singapore Growth Probably Quickened; Central Bank May Tighten (Source: Bloomberg)
Singapore’s economy probably grew at the fastest pace in three quarters, stoking inflation and adding pressure for faster currency appreciation.

FOREX-Dollar edges higher vs euro but bearish tone remains
NEW YORK, April 11 (Reuters) - The dollar paused from last week's sharp decline against the euro on Monday, but a strong bearish stance toward the greenback is seen persisting ahead of next month's U.S. debt limit debate and on global central bank monetary policy disparities.
The dollar found support after a U.S. government shutdown was averted on Friday, and the dollar's rise was widely viewed as overdue after its sell-off versus the euro for the last four months. So far in April the dollar is still down more than 2 percent.

Risk shunned as oil extends drop, yen bounces
SINGAPORE, April 12 (Reuters) - A decline in crude oil prices on Tuesday from a 32-month high that could extend in the near term triggered a bout of profit taking in risky assets, causing investors to sell equities and slash their bets against the yen and U.S. dollar.
"Open interest has been building up since the start of the new quarter in April, reflecting fresh inflows of speculative money into the oil market," said an energy analyst at a leading Japanese trading house who declined to be named.

20110413 0955 Global Commodities Related News.

Corn (Source: CME)
US corn futures close sharply lower on profit-taking and spillover selling from a steep slide in crude oil. Losses in crude impact grains because ethanol is made from corn and funds often trade in a basket of commodities. "Crude oil, I think, is the No. 1 market that is hammering the grains right now," says Citigroup analyst Terry Reilly. Watchers remain bullish as high prices have not yet taken a significant bit out of corn demand. CBOT May corn falls 23 1/2c to $7.52 1/2 a bushel after reaching a record high above $7.80 Monday.

Wheat (Source: CME)
US wheat futures sink on profit-taking and spillover selling from other markets. Wheat felt pressure from losses in corn and crude oil as commodity funds sold an estimated 10,000 contracts at the CBOT, a relatively heavy amount, traders say. Wheat briefly traded below corn for the first time since 1996, but the product is expected to rebuild its premium as the relationship will encourage more feeding to livestock, analyst say. Drought also continues to threaten Plains output. CBOT May wheat falls 38 3/4c to $7.59 1/2 a bushel, KCBT May loses 25c to $8.94 and MGE May drops 24c to $9.11 3/4.

Oats (Source: CME)
US oat futures fell, keeping pace with broader based losses in neighboring grain futures. Widespread commodity losses overshadowed support from planting issues due to drought concerns in Texas and cool, wet weather in the northern Plains and Canada. Oats for May delivery dropped 10 1/2 cents or 2.6% to $3.91 a bushel.

Rice (Source: CME)
US rice futures finish deep in negative territory as broad-based selling engulfs commodity markets. Concerns about the health of the global economy rattled the markets as Goldman Sachs warned clients of "demand destruction" for oil, analysts say. CBOT May rice closes down 35c at $13.37/hundredweight.

U.S. wheat, corn slide amid commodities selloff
SINGAPORE, April 12 (Reuters) - U.S. wheat fell around 2 percent, while corn lost more than 1 percent as grains took a breather following a report from Goldman Sachs advising investors to lock-in profits before oil and other markets reverse.
"Energy prices and the dollar are having an impact on the agricultural commodities," said Abah Ofon, an analyst with Standard Chartered Bank in Singapore.

China sells 131,720 T feed wheat, weekly corn offer lower
BEIJING, April 12 (Reuters) - The central government sold 131,720 tonnes of state reserves of low quality wheat for animal feed production to ease tight corn supplies, while reducing the volume of corn offered at weekly auctions by as much as 64 percent.
The feed wheat, from a total of 306,098 tonnes offered on Tuesday, was sold at an average of 1,823 yuan ($278.828) per tonne, 2 percent higher than last week's price, reflecting interest from feed mills.

US corn planting pace seen as fastest on record
CHICAGO, April 11 (Reuters) - U.S. farmers planting corn appear to be off to their fastest start on record due to dry weather in southern areas, motivated by the tightest stocks since the 1930s which have pushed prices to record highs.
The U.S. Agriculture Department's weekly crop progress report on Monday afternoon, the first of the year, is likely to show that farmers had planted 4.5 percent of their anticipated corn acreage as of April 10, based on an average of estimates given by nine analysts. 

Corn Declines 0.3% to $7.55 Per Bushel in Chicago as Soybean Futures Climb  (Source: Bloomberg)
Corn declined as much as 0.3 percent to $7.55 a bushel in Chicago and traded at $7.5675 a bushel, while wheat fell 0.2 percent to $7.905 a bushel and soybeans increased 0.1 percent to $13.425 a bushel.

Philippines sees strong Q1 farm output, bigger rice crop
April 12 (Reuters) - Philippine farm output was stronger in the first quarter than in the last three months of 2010, and the country is expected to surpass its rice production forecast for the first half of the year, the agriculture secretary said on Tuesday.    
An increase in rice and corn production helped the overall farm output in the March quarter grow at least 7 percent from a year earlier, stronger than the previous quarter's 6.35 percent, Proceso Alcala told a media conference.

Fierce Drought Hurts Farmers In The Southwest (Source: CME)
A scorching drought in much of the Southwest is hurting farmers across several states and potentially crimping supplies of crops and cattle. In Texas, where the past six months has been the driest such period on record since 1967, more than half of the state is parched by extreme drought, according to the Drought Monitor, a compendium of government and academic estimates. New Mexico, too, is drying out, with almost 75% of the state in a severe drought, the monitor shows. In Oklahoma, the period between January and March was the driest since 1921, including the 1930s Dust Bowl years, said the state's associate climatologist, Greg McManus. Parts of the southern U.S. have battled drought on and off since 2006, but this year is shaping up to be particularly bad, because of an exceptionally dry winter and spring, when the region usually receives more rain. The drought is hitting the Southwest at a time of rising commodity prices that have attracted the attention of policy makers in the U.S. and elsewhere.
Because of the sizable agricultural industry in the Southwest, a decline in production could exacerbate an already tight supply situation. Forecasts call for less-than-average rains in Texas and New Mexico in the next three months, and at least for the next month in Oklahoma, according to climatologists in those states. In response, at some of the country's most productive farms and ranches, farmers are destroying unsalvageable wheat crops and selling cows earlier than usual. Bill Hyman, a cattle rancher in Gonzales County, Texas, about 70 miles south of Austin, said he auctioned off some of his animals earlier this year. With scant grass on the fields, he is feeding supplemental hay to the rest of his herd, but is keeping other expenses down to a minimum. "We're not buying tractors; we're not buying equipment; we're not buying anything," said Mr. Hyman, who is also executive director of Texas' Independent Cattlemen's Association.
The U.S. Agriculture Department said 66% of wheat fields in Texas and 60% of those in Oklahoma were in poor to very poor condition as of Sunday. The two states accounted for 17% of the nation's production last year. Much of the nation's winter wheat crop -- which is planted in the fall and harvested in early summer -- is grown on the Southern Plains. Because of the drought there, 36% of the U.S. winter wheat crop is in poor to very poor condition, compared to just 6% this time last year. In a March report, the U.S. government said it expected farmers to devote 8% more acres to planting all types of wheat than last year. Wheat from other states could compensate for the lower-than-average yields in the south, but heavy rains in some areas, including North Dakota, have delayed the spring planting, said Kim Anderson, a crop marketing specialist with Oklahoma State University.
With wheat prices high, it's also possible that countries in the southern hemisphere such as Australia and Argentina will plant more wheat, he added. Until recently, this growing season promised to be a profitable one for farmers, as the budding world economy raised demand for food. For many farmers, it's not just the immediate harvest that is in danger. Terry McAlister, a farmer in Wichita County, Texas, 160 miles northwest of Dallas, said he decided not to spread fertilizer or prepare his fields for such summer crops as cotton and grain sorghum. "We're not going to be able to plant anything until we get rain," he said. Craig Sanders, a farmer near Boise City in the Oklahoma panhandle, is more optimistic. Although he's expecting his wheat crop to start turning brown any day, he's going ahead with summer planting and hoping for rain. "I've seen it happening in this country," he said. "It'll turn around and get wet and raise a hell of a crop."
The drought is also likely to further shrink herd sizes, which are already down some 500,000 beef cows from last year, according to USDA data. "When it comes to enjoying a steak or hamburger, what happens with the drought in Texas eventually affects everybody," said David Anderson, a livestock economist at Texas AgriLife. The state is the biggest producer of beef in the country.

Ship Owners Charging Premiums To Lease Vessels For Japan Delivery (Source: CME)
Ship owners are charging premiums to provide their vessels for delivery of cargoes to some of the ports close to the nuclear radiation zone in Japan, industry executives said. charter had to pay a huge premium for a vessel to deliver cargo to Japan's Chiba port in a recent case, Kyuho Whang, Chief Executive of Seoul-based SK Shipping, said on the sidelines of an international shipping conference. He said premiums vary depending on the cargo and the vessel, while more importantly, some shipping crews are also reluctant to call at the Japanese ports. "The master of the ship has the full authority to decide on going to these ports. We aren't boycotting Japan, but [we] want it to be on safe terms," said Morten Arntzen, Chief Executive of Overseas Shipholding Group Inc. He said that shipping companies haven't previously had to deliver cargoes close to an area affected by nuclear radiation, so it is a "steep learning curve."

Oil Falls for a Third Day as Higher Prices Are Forecast to Curtail Growth  (Source: Bloomberg)
Oil declined for a third day in New York after the International Energy Agency said that prices above $100 a barrel are starting to hurt the global economy, and as U.S. stockpiles of crude increased.

IEA Says Oil Prices Above $100 Hurt Economy, Keeps Demand Outlook Stable  (Source: Bloomberg)
The International Energy Agency maintained its outlook for global oil demand in 2011, while warning that prices above $100 a barrel are starting to hurt the global economy. Worldwide oil consumption will increase by 1.4 million barrels a day, or 1.6 percent, this year to average 89.4 million a day, the Paris-based adviser said today in its monthly Oil Market Report. Still, preliminary data “already show signs of oil demand slowdown,” and global supplies are starting to look “thin” as the conflict in Libya strains OPEC members’ spare production capacity, the IEA said.

Copper in London Rebounds from Biggest Drop in a Month on Demand Outlook  (Source: Bloomberg)
Copper in London gained for the first time in three days, rebounding from its biggest drop in a month, as some investors remained positive on the outlook for demand this year.

Goldman sees risk oil, commodity prices could slide
NEW YORK, April 11 (Reuters) - Long-term commodity bull Goldman Sachs  warned clients on Monday to lock-in trading profits before oil and other markets reverse, with the bank's estimates suggesting speculators are boosting crude prices as much as $27 a barrel.
Traders said the call from one of the biggest banks in commodities contributed to a near 3 percent slide in U.S. oil futures , on expectations the bank's numerous clients could close out positions with U.S. crude prices up 20 percent for the year so far.

China March daily steel output up 4.6 pct vs Feb -industry website
SHANGHAI, April 12 (Reuters) - China's daily crude steel output rose 4.6 percent to 1.914 million tonnes in March from February, industry website said on Tuesday, citing data from the China Iron & Steel Association (CISA).
The revised daily output for February was 1.829 million tonnes.

METALS-Copper falls as Japan crisis hits sentiment
LONDON, April 12 (Reuters) - Copper fell on Tuesday as Japan's worsening nuclear crisis and aftershocks hit market confidence and weakened prospects for economic recovery and metals demand growth in the world's third-largest economy.
Three-month copper on the London Metal Exchange  fell about 1 percent and was at $9,775.75 a tonne by 0946 GMT from $9,855 at the close on Monday, extending losses from the previous session.

PRECIOUS-Gold eases as dollar steadies; silver gathers pace
LONDON, April 12 (Reuters) - Gold fell for a second day on Tuesday, under pressure from a steadier dollar after having hit record highs on Monday, while a warning from Japan about the severity of its nuclear crisis fed modest safe-haven demand.
Goldman Sachs' decision on Monday to book profits on its positions in crude oil, copper, platinum and some agricultural commodities weighed on the raw materials sector, including gold.

Cocoa steady, focus on Ivorian mid crop; sugar rises
ICE cocoa futures were little changed in early trading on Tuesday as dealers focused on an expected resumption of exports from top producer Ivory Coast after the capture of defeated leader Laurent Gbagbo. Ivory Coast accounts for about 40 percent of world supplies. Raw sugar futures on ICE firmed in early trade, after the U.S. Agriculture Department authorised the import of nearly 295,000 tonnes in fiscal 2011.

Uganda cuts 2010/11 coffee export fcast-UCDA
KAMPALA, April 12 (Reuters) - Uganda has cut its 2010/11 (Oct-Sept) coffee export forecasts to 2.67 million 60 kg bags from 3.1 million bag previously due to drought, the Uganda Coffee Development Authority said on Tuesday.
"There was a prolonged dry spell which lasted about four months and left insufficient moisture in the soil and caused trees to shed some cherries, which ultimately impacted output," a source at UCDA said.

India 2010/11 cotton arrivals up 1.1 pct to 27.3 mln bales
MUMBAI, April 12 (Reuters) - Domestic cotton arrivals in Indian spot markets till April 10 in the 2010/11 season edged up 1.1 percent on year, the state-run Cotton Corp of India said on Tuesday.
Arrivals as on April 10 stood at 27.3 million bales of 170 kg each, compared with 27 million bales a year ago, the government body said on its website.

China March cotton imports 276,400 T, down 15 pct on yr -industry website
BEIJING, April 12 (Reuters) - China imported 276,400 tonnes of cotton in March, down 15 percent from the same period last year, an industry website said on Tuesday, citing Customs data.
The March imports were up 50 percent, or 92,200 tonnes more from February, according to a report on a website under China National Cotton Reserves Corp.

20110413 0954 Soy Oil & Palm Oil Related News.

 Soy Oil chart reading : correction range bound little upside biased.

Soybeans (Source: CME)
U.S. soybean futures tumbled near 4-week lows, succumbing to a broad-based commodity sell-off. Concern about the nuclear risk in Japan triggered a sell-off in commodities, with a sharp decline in crude oil as Goldman Sachs encourages investors to reduce risk in raw material markets, analysts say. Meanwhile, concerns that China could cancel some soy purchases from the U.S. and rising South American production forecasts were bearish fundamental factors adding further pressure to soybeans, according to Doane Advisory Service. However, tight supplies are still concern for soybeans, as farmers are expected to expand corn and cotton plantings this spring at the expense of soybean acres. CBOT May soy ended 38 3/4c or 2.8% lower at $13.29 3/4.

Soybean Meal/Oil (Source: CME)
Soy-product futures tumble on widespread selling in commodity markets, with soyoil slipping to 2-week lows on spillover pressure from a sharp slide in crude oil and soymeal plunging to a 4-week low, with a slowdown in global soymeal feed demand aiding the defensive tone, an analyst said. CBOT May soyoil settled 2.7% lower at 57.24c/pound and May soymeal fell 2.1% to $342.40/short ton.

Palm oil dips 2 pct on stock data hangover, crude
JAKARTA, April 12 (Reuters) - Malaysian palm oil futures eased almost 2 percent on Tuesday, weighed by weaker comparative vegetable oils and lower crude prices.
The benchmark June crude palm oil contract on Bursa Malaysia Derivatives traded down 1.4 percent
at 3,368 Malaysian ringgit ($1,115) a tonne. It earlier went as low as 3,355 ringgit.
"Look at the export figures yesterday -- it is worrying," said one trader. "External factors are crude on the way down, and corn also down.

China to sell 3 mln T state soy reserves, imports to hurt
BEIJING, April 12 (Reuters) - China, the world's top soy importer, will sell 3 million tonnes of domestic soy from state reserves to some crushers at a below-import price of 3,500 yuan ($535.325) per tonne.
"The sale could hurt buying interest by crushers for South American soy for July and August shipment."

China sells 99,700 T rapeseed oil reserves ahead of lower harvest
BEIJING, April 12 (Reuters) - China sold all 99,700 tonnes of rapeseed oil offered from state reserves at regular auctions on Tuesday, as the domestic market braces for lower rapeseed output ahead of the harvest next month.
Trading volumes and average prices were both higher than the previous sale. Traders were expecting that China's rapeseed output may fall as much as 20 percent this year from last year's 13.15 million tonnes.

Forecasts for Malaysian, Indonesian palm oil production
KUALA LUMPUR, April 12 (Reuters) - Strong palm oil production in Southeast Asia for the first quarter of 2011 may see government agencies and analysts revise up their forecasts.
On Tuesday, industry analyst Dorab Mistry revised up his Indonesian production estimate to 25 million tonnes from an earlier estimate of 24 million tonnes, going much higher than industry and government forecasts.

Argentine Feb soy crushing up 43.9 pct vs Feb 2010
BUENOS AIRES, April 11 (Reuters) - Argentine soy crushing increased 43.9 percent in February from February 2010, to 2.02 million tonnes, thanks to a record 2009/10 crop, the government said in its latest monthly report.
Argentina is the world's top supplier of soyoil and soymeal and the third-biggest exporter of unprocessed beans.

India's March vegoil imports to fall on rapeseed harvest
NEW DELHI, April 11 (Reuters) - India may have cut vegetable oil imports by 18 percent in March as a big rapeseed harvest improved domestic supplies, a Reuters survey showed, and the trend should continue next month, putting downward pressure on international prices.
Palm oil imports are expected to have fallen 20 percent in March over the previous month, according to the survey of eight traders, while soyoil imports could fallen 46 percent -- the first decline in four months.