Thursday, April 14, 2011

20110414 1856 FCPO EOD Daily Chart Study.

FCPO closed : 3348, changed : -66 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : weakenning, buyer reducing position.
Support : 3270, 3250, 3200, 3150 level.
Resistance : 3300, 3350, 3420, 3450 level.
Comment :
FCPO closed recorded losses with better volume traded (partially are roll over activities ahead of 15th change month) ahead of tomorrow export data release while soy oil overnight closed nearly unchanged and currenting trading lower. Sentiment wise, increasing production seems still haunting market to move lower. 
Daily chart formed a down bar candle closing below middle Bollinger band level after market opened gap down, tested higher above resistance level and slipped lower toward the end followed by last minutes 20 plus points sell down to closed at the low of the day.
Chart reading still suggesting a side way range bound market development possibly 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 or strength with quick cut loss and profit target.

20110414 1752 FKLI EOD Daily Chart Study.

FKLI closed : 1516 changed : -19.5 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : falling lower, seller seems in advantage.
Support : 1515, 1500, 1485, 1470 level.
Resistance : 1530, 1540, 1550, 1565 level.
Comment :
Wild market FKLI closed recorded losses surrender all yesterday gains with lower volume changed hand doing almost 10 points discount compare to cash market while regional markets traded mixed. News wise, China reported higher than expected new loan approvals and China Forex reserve soar past 3 trillion adding inflation headache. Meanwhile in U.S., president Obama seems not getting much support from congress on the budget and tax plan.
Daily chart formed a wide range down bar candle closed lower from middle Bollinger band after market opened little lower, moved few ticks upward and traded downward swing movement to end near the low of the day.
Chart reading turned into suggesting a side way range boung market development testing support and resistance level with MACD indicator having negative cross down and negative convergence taking place.
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.

20110414 1629 Global Market & Commodities Related News.

Asian stocks ease, Singapore GDP impresses
SYDNEY, April 14 (Reuters) - Asian stocks slipped on Thursday as the market consolidated after a recent run-up to near three-year highs, although Singapore's impressive growth data underscored investor confidence in the region.
"We've had a fantastic run in the previous three weeks. We're easing back a bit now and that's probably the way we'll glide into Easter," said Austock Securities senior client adviser, Michael Heffernan.

Oil steady after U.S. gasoline stocks drop, demand outlook weighs
SINGAPORE, April 14 (Reuters) - Brent crude fell  trading below $123 a barrel on concern about the impact of high prices on demand, although continued unrest in the Middle East and a sharp fall in U.S. gasoline stocks limited losses.
Demand destruction has "probably just started, but it doesn't look like it is going to be that big a deal," said Michael Lo, a Hong Kong-based analyst at Nomura International.

U.S. wheat recovers from 2-week low; corn, soy steady
SINGAPORE, April 14 (Reuters) - Chicago wheat futures rose around half a percent as the market recovered from a two-week low on concerns over dry weather in Europe and Australia's wheat producing areas.
"It seems like the weather is improving for the wheat crop in the U.S., but we are still watching dryness in Europe, China and Western Australia, so there is little bit of concern," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne.

Brazil cocoa slows to trickle, awaits May mid-crop
SAO PAULO, April 13 (Reuters) - Deliveries of cocoa to warehouses in Brazil's main growing regions were slow in the last week, data from Bahia Commercial Association showed, but will pick up again in May once the mid-crop harvest starts.
Total Brazilian cocoa arrivals, including imports, reached 3.96 million 60-kg bags from May 1, 2010 to April 10, up 15 percent from the same period of last season, data from the Bahia Commercial Association showed.

Colombia coffee exports soar 53 pct in March-fed
BOGOTA, April 13 (Reuters) - Colombia's coffee exports shot up 53 percent to 884,000 60-kg bags in March versus the same month last year, a trade group said on Wednesday, as growers took advantage of record high prices.
The coffee futures market has doubled in value in a sustained rally that began in June 2010, with much of the latest push driven by a scramble for high-quality beans. Coffee prices hit a 34-year high last month.

Paraguay sees record 8.4 mln T soy harvest-minister
ASUNCION, April 13 (Reuters) - Paraguay's 2010/11 soy harvest was projected at a record 8.4 million tonnes, 1 million tonnes above the start-of-season estimate, the Agriculture Ministry said Wednesday.
The forecast would put the small South American country's soy production 12.3 percent above last season's record output, and matched the crop estimate by the Paraguayan Chamber of Cereals and Oilseeds Exporters (CAPECO).

Gold extends gains on shaky U.S. dollar
SINGAPORE, April 14 (Reuters) - Gold rose for a second day on Thursday as the U.S. dollar held near a 16-month low against a basket of currencies.
"Gold could be supported by the weak dollar and the loose monetary policy from the Federal Reserve," said Ong Yi Ling, investment analyst at Phillip Futures in Singapore.

20110414 1218 Global Market & Commodiites Related News.

GLOBAL MARKETS: Deficit-cutting plan boosts U.S. bonds, dollar
NEW YORK, April 13 (Reuters) - U.S. bonds and the dollar rose on Wednesday on hopes that President Barack Obama's $4 trillion deficit reduction plan would shore up the United States' credit-worthiness and the dollar's reserve status. "It's a positive from a credit and currency perspective. It's positive in the sense that the U.S. can (better) meet its obligations," said James Caron, global head of rates research at Morgan Stanley in New York.

OIL: Crude firms as demand concerns ease, Libya woes linger
TOKYO, April 14 (Reuters) - U.S. crude futures firmed on Thursday after data showing U.S. gasoline stockpiles plunged last week and lingering worries about the Libyan conflict helped their rebound from below $106 per barrel the previous day.   U.S. crude fell more than $6 in the previous two sessions, driven by cautious comments from Goldman Sachs which said a robust crude rally looked overdone. The International Energy Agency and the Organization of Petroleum Exporting Countries also said expensive oil could hurt global demand.

High gas prices hurt US confidence, change habits
WASHINGTON, April 13 (Reuters) - Rising U.S. gasoline prices have damaged confidence in the country's future and forced Americans to change their spending habits and lifestyles, a Reuters/Ipsos poll released on Wednesday found.
The proportion of people who believe the United States is on the wrong track jumped 5 points to 69 percent from March, the poll found, the highest wrong-track figure in an Ipsos poll since President Barack Obama took office in January 2009.

Libyan rebels say oil exports vital
DOHA, April 13 (Reuters) - Rebels fighting to overthrow Muammar Gaddafi said on Wednesday they had to keep exporting oil to preserve what little cash they had and secure critically needed supplies for the civilian population.
The Libyan National Council (LNC), with the help of OPEC member Qatar has been able to export a "minimal" amount of crude oil and needs international help to continue overseas shipments, said spokesman Mahmud Awad Shammama.

NATURAL GAS: Natural gas ends higher, supply concerns limit gains
NEW YORK, April 13 (Reuters) - U.S. natural gas futures ended slightly higher on Wednesday, backed by cool weather forecasts for northern tier states, but concerns about high supplies continued to limit the upside. "The market was up a little, but I expect prices to stay around here for a while or even test slightly lower numbers, at least until we get more heat," a Texas-based producer said.

EURO COAL: S.African trades at premium to Newcastle
LONDON, April 13 (Reuters) - South African FOB Richards Bay coal prices have risen $2 a tonne above FOB Newcastle Australian prices for the first time in over 4 years and this is the clearest reflection of oversupply in the Pacific, traders and utilities said. "The German nukes shutdown had an impact because the Germans did have to quickly buy more coal to burn but they don't need much if anything now until the winter," one trader said.

COMMODITIES: Oil up, snapping 2 day loss; metals down
NEW YORK, April 13 (Reuters) - Oil rose for the first time in three days on Wednesday after inventory data showed that high gasoline prices yet to erode demand as feared, though metals prices fell again and crop markets settled mixed. "This is getting everyone in a panic," Bart Melek, TD Bank director of commodities at TD Financial Bank, said, referring to the inflation-fighting measures reportedly mulled by China, the world's largest commodities consumer.

20110414 1039 Global Economic Related News.

China: Record bank lending may spur Fitch rating downgrade
China’s debt rating may be cut for the first time in 12 years after a record jump in lending added to risks that bad loans will overwhelm banks in the world’s fastest-growing major economy. Fitch Ratings lowered its outlook on China’s AA- long-term local-currency rating to “negative” from “stable,” citing a “high likelihood of a significant deterioration” in banks’ asset quality within three years. The outlook on China’s A+ foreign-currency rating remains stable, London-based Fitch said in a statement. (Bloomberg)

Japan: Cut its economic assessment as earthquake damage mounts
The Japanese government cut its assessment of the economy for the first time in six months after the 11 March earthquake killed more than 12,000 and led to the worst nuclear crisis since Chernobyl. “Although the Japanese economy was picking up, it has shown weakness” since the temblor, the Cabinet Office said in a report yesterday in Tokyo. A power shortage that resulted from a crippled nuclear facility, delays in resolving supply chain disruptions and rising oil prices threaten to depress growth further, it said. (Bloomberg)

Japan: Producer prices rise more than forecast in March after quake. The costs companies pay for energy and unfinished goods gained 2.0% YoY in March, the sixth straight month of increases, after climbing 1.7% YoY in February. (Source: Bloomberg)

South Korea: Central bank increases its inflation forecast
South Korea’s inflation will probably accelerate more than previously forecast while economic growth stays in line with expectations, the Bank of Korea said. Consumer prices may increase 3.9% in 2011, faster than the previous estimate of 3.5%, the central bank forecast in a statement in Seoul today. Gross domestic product is projected to expand 4.5% this year and 4.8% in 2012 after a 6.2% gain in 2010, it said. The bank predicted in December growth of 4.7% for next year. (Bloomberg)

UK: March jobless claims unexpectedly rise on benefit rules
UK jobless claims unexpectedly rose in March, led by women as a change in benefit rules pushed people into the labor market. Jobless benefit claims rose by 700 from February to 1.451m, the Office for National Statistics said yesterday in London. That compared with the median forecast of 22 economists in a Bloomberg News survey for a drop of 3,000. Unemployment measured by International Labour Organization methods slipped to 7.8% in the quarter through February from 7.9% in the three months through November. (Bloomberg)

EU: Italy to sell debt as contagion stops at Portugal
Italy auctions as much as EUR6bn (USD8.7bn) of debt yesterday, the first bond sale by a so- called peripheral euro-region nation to test whether Portugal’s bailout has halted contagion from Europe’s debt crisis. Investors charge Italy about 3.75% to borrow for five years, compared with 4.4% for Spain, more than 10% for Portugal and 15% for Greece. Portugal announced on 6 April that it was seeking a rescue package, a year after Greece sought aid, becoming the third EU country to seek help. (Bloomberg)

EU: Industrial output growth accelerated in February
European industrial production growth accelerated in February, led by demand for intermediate and capital goods, indicating that the economy is gathering strength. Production in the 17-member euro area rose for a fifth straight month, increasing 0.4% from January, when it advanced 0.2%, the European Union’s statistics office in Luxembourg said yesterday. European manufacturers have fueled the region’s recovery from stalling growth in the fourth quarter as surging export demand prompted companies to boost hiring and spending, helping offset the impact of tougher austerity measures. (Bloomberg)

EU: French inflation quickened in March, adding to ECB pressure
French inflation accelerated in March and German wholesale prices jumped the most in almost three decades, adding pressure on the European Central Bank to continue raising borrowing costs. French consumer prices, calculated using a harmonized European Union method, increased 2.2% from a year earlier after rising an annual 1.8% in February, Paris-based national statistics office Insee said yesterday. That’s the biggest gain since October 2008. German wholesale-price inflation quickened to 10.9%, the fastest since 1981. (Bloomberg)

US: Job openings rose 352,000 in February to 3.09m
Job openings in the U.S. increased in February by the most since December 2004, a sign companies are turning more optimistic about hiring. The number of positions waiting to be filled rose by 352,000 to 3.09m, the Labor Department said yesterday in a statement posted on its website. The number of people hired and the number of workers fired also increased. Private payrolls rose by 230,000 in March, capping the strongest two-month gain since 2006, Labor Department data showed 1 April. Hiring must accelerate and continue to broaden out across industries to restore the more than 8.75m jobs lost as a result of the recession. (Bloomberg)

US: Retail sales rise for ninth straight month
Sales at US retailers rose in March for a ninth consecutive month, easing concern that the jump in food and fuel costs would cause consumers to retrench. Purchases increased 0.4% following a 1.1% February gain that was larger than previously estimated, Commerce Department figures showed yesterday in Washington. Declining unemployment and a cut in payroll taxes for 2011 are helping sustain sales at chains like Macy’s Inc. and Saks Inc. At the same time, mounting gasoline and grocery bills are eroding confidence and straining paychecks, making it likely consumer spending, the biggest part of the economy, cooled in the first quarter from the final three months of 2010. (Bloomberg)

U.S: Economy expands as labor markets improve, Fed says. "While many districts described the improvements as only moderate, most districts stated that gains were widespread across sectors," the Fed said in its Beige Book report in Washington. While higher commodity costs compelled sellers to try to raise prices, pressures to increase wages were "weak or subdued." (Source: Bloomberg)

20110414 1038 Malaysia Corporate Related News.

 KLCI chart reading :
correction range bound upside biased.

Penang gets new RM1bn Japanese investment
Penang received a shot in the arm with a RM1bn investment by Japan's Ibiden Co Ltd, the world's largest printed circuit board (PCB) maker. President and chief executive officer Hiroki Takenaka said the amount would be pumped into its second facility in the Penang science park in Bukit Minyak here. He said the company had already invested RM1.2bn in its first plant in 2008. “As a long-term plan, we decided to expand our operations here in Penang based on our resources and initial investment. “We also appreciate the support given by the Penang state government,” he said after Chief Minister Lim Guan Eng opened Ibiden Electronics (M) Sdn Bhd's first plant and performed the groundbreaking for the second plant yesterday. (StarBiz)

BToto not seeking strategic investor
Berjaya Sports Toto Bhd (BToto) is no longer pursuing a possible corporate exercise which may result in the entry of a strategic investor. In a note to Bursa Malaysia yesterday, the company said it “has and will continue to manage its business and capital diligently with the aim of creating value and enhancing shareholders returns.” It added: “The company is mindful of its obligations pursuant to the Bursa Malaysia Securities Bhd Main Market listing requirements and will make the necessary announcements if one is warranted.” BToto, when contacted, declined to comment on the reason for the sudden change in decision. “We have issued an announcement and BToto has no further comments other than what has been announced,” said a company spokesperson. (StarBiz)

High fuel prices to impact MAS 1Q earnings
Malaysian Airline System Bhd’s (MAS) earnings in 1QFY11 ended 31 Mar were impacted by higher fuel prices, managing director and CEO Tengku Datuk Azmil Zaharuddin said. He expects the company’s transformation programme to show results in the long term though. Speaking to the press at the Invest Malaysia 2011 forum yesterday, Tengku Azmil said higher fuel prices were “definitely making a negative impact on us”. He said about 25% of the airline’s jet fuel for 2011 was hedged at USD90 (RM272) per barrel but the price was currently about USD140 per barrel. (Financial Daily)

Alam Maritim gets RM24.24m contracts to supply 2 vessels
Alam Maritim Resources Bhd’s unit has secured RM24.24m in contracts to supply two vessels to an independent oil and gas exploration and production company. Its unit Alam Maritim (M) SB would provide one anchor handling tug supply vessel and one fast multipurpose supply vessel. “The duration of the contracts are for a primary period of six months with two extension options of one month each,” it said. Alam Maritim said the contracts were expected to positively contribute to the earnings and net assets for the financial year ending 2011. (Financial Daily)

Masterskill, Indonesian firm in exchange pact
Masterskill Education Group (MEGB) has entered into a memorandum of understanding with its chief executive officer Datuk Seri Edmund Santhara and Indonesia’s PT Sejahteraya Anugrahjaya Tbk (PTSA) to establish and develop academic exchange and co-operation in teaching and training of Masterskill’s students at the Mayapada Hospital owned by PTSA. The MOU is to enhance clinical competence and compliance and academic requirements and to form the Universitas Masterskill-Mayapada in Indonesia. The JV company with a paid-up of USD10m (RM303m) will be held by Masterskill (30%), PTSA (40%) and Edmund Santhara (30%). (BT)

Khazanah to re-list healthcare arm in divestment “shake-up”
Khazanah Nasional Bhd, the government’s investment holding arm, plans to re-list its healthcare flagship which is set for a rapid regional expansion within the next three years. Integrated Healthcare Holdings, as its consolidated unit is known, may be put up for public listing on either the local bourse of the Singapore stock exchange as part of a divestment programme, according to Khazanah managing director Tan Sri Azman Mokhtar. This year, Khazanah may make divestments valued between RM6bn and RM7bn, excluding PLUS Expressway Bhd’s transaction, while scouting for acquisitions at the same time, Azman said. (Malaysian Reserve)

Government may buy water bonds
Amid strong concerns voiced by water bondholders in the financial sector, the Federal Government is believed to be planning a special purpose vehicle or getting Pengurusan Asset Air Bhd (PAAB) to buy over the bonds for which some are running into an event of default. The Finance Ministry, after receiving urgent feedback from the bondholders that include banks, the Employees Provident Fund and Great Eastern, is likely to use the time tested method of setting up a vehicle like Pengurusan Danaharta Nasional to take over the bonds, sources said. (Danaharta was set up following the 1997 Asian financial crisis to take over ailing assets). Facilities at PAAB are also on standby; PAAB has a coffer of RM40bil, half of which is government guaranteed. After spending RM4bil to buy over water assets in three states, PAAB still has a deep pocket. (StarBiz)

Ramunia’s unit signs MOU
Ramunia Holdings Bhd’s unit, Ramunia Fabricators SB (RFSB), has signed a memorandum of understanding (MoU) with Swe Infrastucture Ltd. In a filing with Bursa Malaysia yesterday, the company said the MoU was to explore possibilities where both parties can collaborate to undertake any business relating to oil and gas, and any other industries in India. (StarBiz)    

20100414 1028 Renewable Energy Related News.

WARSAW, April 12 (Reuters) - Poland plans to produce 8.85 percent of its energy from renewable sources this year, up to 13 percent in 2015 and 16.78 percent in 2019, the centre-right government said in a statement on Tuesday.
More than 90 percent of Poland's electricity comes from highly-pollution coal. Warsaw wants to develop nuclear and renewables projects as it tries to align its economy with the European Union's ambitions to cut carbon dioxide emissions.

LONDON, April 12 (Reuters) - Offshore wind farm construction costs in Britain need to drop by around 30 percent over the next decade if the sector is to develop and help the country meet its green energy targets, a British offshore wind farm developer said on Tuesday.
"If the industry doesn't take off, how else are we going to supply our energy? We don't have the choice, we have to put more renewable energy capacity in place," said Allan MacAskill, business development director for SeaEnergy Renewables, which has permits for developing offshore wind farms in British waters.

BEIJING, April 12 (Reuters) - Huaneng Group, China's largest power producer, aims to add more clean energy capacity over the next five years and will boost the share of clean energy in its total power installed capacity to 25 percent in 2015, a company official said on Tuesday.
That target is 10 percentage points higher than the 2010 level, said the company's chief economist Wu Dawei, speaking at a forum in Beijing.   

NEW YORK, April 8 (Reuters) - Metabolix Inc  is betting biodegradable beach toys and agricultural mulch films will help it revolutionize the plastics industry, though the company's weak financial history is starting to try Wall Street's patience.
Metabolix uses polyhydroxyalkanoate chemicals, or PHAs, to make plastics that decompose naturally. PHAs are found in plant cells and are eaten by bacteria.

BOSTON/NEW YORK, April 7 (Reuters) - General Electric Co  made a big push in solar power, saying it will invest $600 million to build a new factory as it pursues what it thinks could be an up to $3 billion business by 2015.
The largest U.S. conglomerate, which over the last decade has made itself a leader in renewable energy, said it has designed a thin-film solar panel that converts sunlight to electricity more efficiently than rival products today.

BOSTON, April 7 (Reuters) - General Electric Co  aims to have its new U.S. solar-panel plant up and running by 2013, the head of the largest U.S. conglomerate's renewable energy unit said in an interview.
GE earlier said it aimed to invest about $600 million in a U.S. plant that each year would produce solar panels capable of generating 400 megawatts -- enough power to meet the needs of 80,000 homes.

April 7 (Reuters) - General Electric  said it will build a 400 megawatt solar panel factory in the United States, in the first phase of its plan to become a global solar power major.
Global demand for photovoltaics, which convert sunlight into electricity, is likely to grow by 75 gigawatts over the next five years, GE said in a statement.

CALGARY, Alberta, April 6 (Reuters) - Natural gas will become the world's most used fuel as countries make the transition to renewable sources, and that points to long-term gains in shares of gas producers, a newly established Canadian investment bank said on Wednesday.
In a report, AltaCorp Capital Inc said that without heavy subsidies most renewable energy is currently too expensive to make a major dent in the use of fossil fuels, which could remain the main energy source into the next century.

20110414 1027 Biofuels Related News.

COPENHAGEN, April 12 (Reuters) - Construction of an advanced biofuels plant in Italy marks a step closer to producing a commercial alternative energy to carbon-emitting petroleum, an executive at Danish enzymes supplier Novozymes said.
Italian chemicals group Mossi & Ghisolfi Group (M&G) broke ground on a 13 million gallons per year (50 mln litres) plant at Crescentino in northwest Italy on Tuesday, and said the cost of the ethanol produced there would be competitive with gasoline.

HAMBURG, April 12 (Reuters) - Gasoline with a higher biofuel content must stay on sale in Germany despite a hostile reaction to the new blend by motorists, Germany's Transport Minister Peter Ramsauer said on Tuesday.
"This is a political wish and oil companies will receive fines if they do not deliver the required volumes," Ramsauer said.
The German government this year raised the maximum permitted level of bioethanol blended in gasoline to 10 percent from 5 percent as part of German's programme to protect the environment.

SAO PAULO, April 12 (Reuters) - Local cane mills, world sugar markets and analysts were unmoved by the Brazilian government's threats to boost ethanol output by any means, saying ideas of a sugar export tax or credit limits would be hard to implement or ineffectual.
Brazilian ministers last week began floating early proposals for an industrial policy shift aimed at stimulating local ethanol supplies to bring down local fuel prices. Such measures, if successful, would likely redirect cane away from sugar production in a country that controls half of global trade in the sweetener.

WASHINGTON, April 11 (Reuters) - Reform of biofuel subsidies that cost $6 billion a year could hitch-hike its way to enactment on a must-pass spending bill, leaders of two ethanol trade groups said on Monday.
They said the industry generally agrees on reforms that would replace the 45-cent-a-gallon tax credit that is the major incentive to produce corn-based ethanol, the major biofuel now being produced.

WASHINGTON, April 8 (Reuters) - The Obama administration said on Friday it will provide incentives to U.S. gasoline stations to install more pumps with a higher blend of ethanol in an effort to boost consumption of the renewable fuel.
Agriculture Secretary Tom Vilsack said the administration hoped to install 10,000 flexible fuel pumps nationwide in the next five years.

WASHINGTON, April 8 (Reuters) - The U.S. government introduced new wording on corn use on Friday following complaints from ethanol makers that they were not getting credit for the corn byproducts that are fed to livestock.
Instead of saying "corn for ethanol" in its monthly report, the U.S. Agriculture Department now spells out the corn is going to produce ethanol and byproducts. A footnote saying byproducts include distillers' grains, corn gluten feed, corn gluten meal and corn oil.

SAO PAULO, April 8 (Reuters) - Brazil's government plans to prioritize state lending for cane mills that focus on ethanol rather than sugar in a bid to boost supply and stabilize prices for consumers, Energy Minister Edison Lobao said Friday.
The high international cost of sugar has led Brazilian millers to reduce output of the biofuel, aggravating the usual seasonal rise in ethanol price at a time when policy-makers are increasingly concerned about inflation.

BRASILIA, April 8 (Reuters) - Brazil's Energy Ministry Edison Lobao said on Friday he has asked state-run oil company Petrobras  to get more involved in the production of ethanol.
That request is part of a broader package of measures meant to boost ethanol production and reduce price volatility for consumers.

BRASILIA, April 7 (Reuters) - Brazil's government will probably introduce changes to ethanol policy over the coming days and weeks in order to protect supplies of the fuel, Agriculture Minister Wagner Rossi said on Thursday.
Brazil's National Petroleum Agency (ANP) "will likely" be in charge of overseeing the sector in the hopes of boosting production, he said at a news conference.

BRASILIA, April 7 (Reuters) - Brazil's government should introduce changes to ethanol policy over the coming days and weeks, Agriculture Minister Wagner Rossi said on Thursday.
Brazil's National Petroleum Agency (ANP) "will likely" be in charge of overseeing the sector in the hopes of boosting production, he said at a news conference.

BRASILIA/SAO PAULO, April 6 (Reuters) - Brazil wants to tighten regulation of the domestic ethanol market to protect fuel supplies, a senior government official said on Wednesday, a move that could ripple through global sugar markets.
President Dilma Rousseff has instructed Brazil's National Oil Agency, or ANP, to draft regulations that will treat ethanol as a "strategic fuel" and no longer as an agricultural commodity, Haroldo Lima, the agency's director, told Reuters.

KANSAS CITY, April 6 (Reuters) - U.S. ethanol production held steady in the week to April 1, as profit margins for producers remained viable despite rising prices for corn, the key ingredient in the alternative fuel.
Ethanol output totaled 902,000 barrels per day (bpd) for the week ending April 1, down 1,000 bpd from the prior week, Energy Information Administration said Wednesday.

SAO PAULO/RIO DE JANEIRO, April 6 (Reuters) - Brazilian biofuels shares posted their biggest tumble in two months on Wednesday on concern President Dilma Rousseff's government will toughen oversight of the sector to control supply and prices.
Brazil's oil and energy industry watchdog ANP is considering broadening oversight of the ethanol sector in the hopes of boosting production, ANP President Haroldo Lima told Reuters on Wednesday.

PARIS, April 5 (Reuters) - French green biotech firm Deinove , which hopes to use a 4 billion year old bacterium to develop the fuel of the future, is eyeing new projects in the United States and Brazil, its chief executive told Reuters.
The company is talks with a large U.S. ethanol maker and with Tereos Internacional , a Brazil-based unit of France's Tereos group, to develop a bioethanol based not only on food but also on a bacterium named deinococcus, discovered in a U.S. corned beef tin in 1956, Deinove CEO Jacques Biton said.

20110414 1025 Global Market Related News.

 DJIA chart reading : correction range bound upside biased. 

Hang Seng chart reading : correction range bound upside biased. 

G-7 Boosting Currency Reserves as UBS Sees Intervention Revival (Source: Bloomberg)
Group of Seven governments are boosting their currency reserves as strategists at UBS AG (UBSN) and Bank of New York Mellon Corp. (BK) detect the potential for more intervention to quell exchange-rate swings in coming years. G-7 finance ministers and central bankers meet in Washington tonight for the first time since uniting to sell yen on March 18, after avoiding such action for more than a decade.

Asian Stocks Fall as Japanese Exporters Drop on Stronger Yen; BHP Declines (Source: Bloomberg)
Asian stocks fell after the yen strengthened, adding to concern about the outlook for earnings for Japanese exporters, and as metal prices declined, dragging commodity shares lower.

Bernanke Urges Republicans to ‘Deal With’ Debt Without Backing Any Plan (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke urged Republicans during a dinner meeting yesterday to find a way to “deal with” the rising U.S. national debt without endorsing a specific plan, lawmakers who attended said.

U.S. Economy Expands as Labor Markets Improve, Fed Report Says (Source: Bloomberg)
The Federal Reserve said the economy expanded at a “moderate” pace across much of the U.S. in February and March, led by manufacturing, with labor markets showing improvements in most regions.

Deficit-Reduction Plan May Mark Positive Turning Point, Moody’s Hess Says (Source: Bloomberg)
President Barack Obama’s plan to cut $4 trillion in cumulative deficits within 12 years may be a “positive” for the nation’s credit quality and mark a reversal in the budget debate, according to Moody’s Investors Service. The U.S. is the only large AAA-rated country that saw its debt rise during the crisis that until recently had no plan that would reverse the trend, said Steven Hess, senior credit officer at Moody’s. Budget cuts would mean the U.S. wouldn’t likely sell as much debt, which has grown to $9.13 trillion in marketable Treasuries from $4.34 billion in mid-2007 as the government boosted spending to pull the economy out of recession.

Retail Sales in U.S. Rise for Ninth Straight Month as Job Market Brightens (Source: Bloomberg)
Sales at U.S. retailers rose in March for a ninth consecutive month, easing concern that the jump in food and fuel costs would cause consumers to retrench. Purchases increased 0.4 percent following a 1.1 percent February gain that was larger than previously estimated, Commerce Department figures showed today in Washington. A report from the Labor Department showed job openings in February jumped by the most in six years.

Treasuries Snap Two-Day Gain Before Inflation Reports, 30-Year Bond Sale (Source: Bloomberg)
Treasuries snapped a two-day gain before U.S. reports today and tomorrow that economists said will show wholesales prices and the cost of living rose last month.

U.S. trade data shows growth headwinds
WASHINGTON, April 12 (Reuters) - U.S. imports and exports fell in February, prompting analysts to cut again their forecasts for U.S. economic growth in early 2011 and showing signs of a slowing in the global recovery.
The trade gap totaled $45.8 billion and was down 2.6 percent from January as imports fell faster than exports, even as oil prices hit their highest level since October 2008, the Commerce Department said on Tuesday.

China’s Growth May Cool in Boost for Wen’s Inflation Campaign (Source: Bloomberg)
China’s growth probably slowed in the first quarter, helping to defuse the risk of overheating in an economy where inflation is estimated to be running at its fastest pace since 2008. The government will report tomorrow that gross domestic product rose 9.4 percent from a year earlier, according to the median estimate in a Bloomberg News survey of 25 economists, down from last year’s peak rate of 11.9 percent. Meantime, separate figures will show consumer prices climbed 5.2 percent in March from a year before, the median forecast indicates. A deceleration in the world’s second-biggest economy would help address inflation that billionaire investor George Soros warned this week is “somewhat out of control” in the aftermath of a record credit boom and higher commodity prices. Premier Wen Jiabao will need to use a stronger currency and some further increase in interest rates to help rein in prices, analysts said.

Singapore Economic Growth Quickens, Prompting Tighter Policy (Source: Bloomberg)
Singapore’s economy grew at the fastest pace in three quarters, an expansion that prompted the central bank to tighten its monetary policy. The country’s currency rose to a record. Gross domestic product rose at an annual rate of 23.5 percent last quarter from the previous three months, when it climbed 3.9 percent, the trade ministry said in a statement today. That compares with the 11.4 percent median estimate in a Bloomberg News survey of 14 economists. The central bank said separately it will re-center the exchange rate policy band upwards.

Japanese Stocks Fall as Yen Strengthens; Honda Motor, Canon, Olympus Drop (Source: Bloomberg)
Japanese stocks fell after the yen strengthened, adding to concern about the outlook for earnings at the nation’s exporters. Honda Motor Co., Japan’s No. 2 automaker by market value and which gets more than 80 percent of its revenue outside Japan, lost 0.2 percent. Canon Inc. (7751), which is the No. 1 camera maker worldwide and derives more than 80 percent of its revenue abroad, sank 0.3 percent. Olympus Corp. (7733), an optical-equipment maker, declined 1.4 percent as Goldman Sachs Group Inc. reduced earnings estimates for Japanese precision-equipment makers, reflecting the impact of last month’s record earthquake and tsunami.

Bank of Korea Must Raise Rate to at Least 4% to Cool Prices, Adviser Says (Source: Bloomberg)
The Bank of Korea should raise its benchmark interest rate to “at least” 4 percent this year to rein in inflation and household debt, an adviser to the nation’s central bank and finance ministry said. “Household debt needs to be handled while it’s still manageable,” Kim Tae Joon, president of Korea Institute of Finance, South Korea’s largest private financial think tank, said in an interview in Seoul yesterday. “We also have room to allow the won to strengthen further to curb inflation.”

Euro zone Feb output picks up by less than expected
BRUSSELS, April 13 (Reuters) - Industrial output in the euro zone accelerated by less than expected in February as manufacturing picked up in Germany and resumed growth in other bloc members but fell in bailout recipients Greece and Ireland.
Production in the 17 countries using the euro rose by 0.4 percent from January, the European Union's statistics office Eurostat said on Wednesday, below the 0.7 percent average forecast in a Reuters poll of 38 economists.

King Wins ‘Breathing Room’ to Keep BOE Rate on Hold After Data (Source: Bloomberg)
Bank of England Governor Mervyn King won respite from pressure to end record low interest rates as soon as next month after inflation unexpectedly slowed and retail sales plunged.

French Inflation Accelerates, Adding to Pressure on ECB to Raise Benchmark (Source: Bloomberg)
French inflation accelerated in March and German wholesale prices jumped the most in almost three decades, adding pressure on the European Central Bank to continue raising borrowing costs.

FOREX-Yen down as risk appetite rises, outlook still weak
NEW YORK, April 13 (Reuters) - The yen fell on Wednesday after rising four straight days against the dollar and euro, as risk appetite improved following gains in global stocks from better-than-expected JPMorgan earnings.
The Japanese currency's downtrend should stay intact as long as risk appetite holds up. The negative impact on the economy of the recent massive earthquake is expected to ensure Japanese monetary policy remains ultra-loose for a prolonged period.

20110414 1023 Global Commodities Related News.

Corn (Source: CME)
US corn futures end higher as the market rebounds from sharp losses Tuesday as supply fears continue to support corn, as did stronger crude oil and worries about wet weather possibly causing a sluggish start to the US planting season. Analysts say a very tight supply outlook, and the need for high prices to choke off demand to avoid a crisis, will limit the market's downside. A good crop this year is critical, which is making the market sensitive to weather forecasts. May CBOT corn closed up 3c at $7.55 1/2 per bushel.

Wheat (Source: CME)
U.S. wheat futures stumble, backpedaling from initial advances on improved weather outlooks for winter wheat crops and sluggish export demand. Weather forecasts calling for showers to reach some parched areas of the hard red winter wheat belt were well received by the market, raising expectations that a change in weather trends for the area could improve struggling crop conditions, said Shawn McCambridge, analyst with Prudential Bache. Market also experienced weakness from concerns prices need to move to levels that generate demand for a market amply stocked with inventories, he added. Otherwise, traders were said to covering some long wheat/short corn spreads, a feat that exhausted early buying. CBOT May wheat ended down 6 3/4c or 0.9% lower at $7.52 3/4 a bushel.

Oats (Source: CME)
Oats futures slipped in unison with wheat, as traders continued to reduce risk exposure in the market. Oats May delivery dropped 1.1% to $3.86 3/4 a bushel.

Rice (Source: CME)
US rice futures rebound after Tuesday's sharp wide losses. Rice has underlying technical support, the Arkansas Farm Bureau says, although "supplies are ample, particularly in the United States." Meanwhile a French agency said Japan may need to import as much as 1.6M metric tons of rice because of the disaster there, a big departure from its typical self-sufficiency. CBOT May rice finishes up 1.9% at $13.62 1/2 per hundredweight.

U.S. soy rises, corn steady after steep losses
SINGAPORE, April 13 (Reuters) - U.S. soy rose 0.6 percent, 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 was certainly very bearish environment across the financial markets last night due to the escalating issues in Japan. If that particular situation calms, I won't be surprised to see some strength."

Vietnam Rice-Prices rise, major harvest nearing an end
HANOI, April 13 (Reuters) - Vietnam's rice export prices rose as much as 6.6 percent in the past week despite ample supplies, as the harvest of the country's top rice crop was nearing an end while loading demand held firm for existing contracts, traders said on Wednesday.  .

Canadian Wheat Board: No Slowdown In Japan Shipments (Source: CME)
Canada has seen no slow-down in wheat exports to Japan since last month's earthquake devastated much of the country's infrastructure, the director of weather and market analysis at the Canadian Wheat Board said. Canada's wheat farmers have been bracing for delays in grain shipments to the Asian country, typically the second-largest importer of Canadian wheat. But Bruce Burnett said there has been no slow-down in shipments as the government scrambles to feed those displaced by the disaster. "I don't think there are any problems in shipping," he said. "For wheat imports certainly the southern ports are still functioning." Controlled by western Canadian farmers, the Canadian Wheat Board is the largest wheat and barley marketer in the world.

French 2010-2011 Wheat Exports Seen At Record 12.8 Mln Tons (Source: CME)
French soft wheat exports outside the European Union will likely hit a record 12.8 million metric tons in the period July 2010-June 2011, as high prices encourage farmers to sell their stocks and harvests in other exporting countries suffered from negative weather conditions, the government agency for agriculture and fisheries, FranceAgriMer, said. The agency's export estimate is up from its March expectation of 12.6 million tons and its January estimate of 11.8 million tons. France exported 9.6 million tons of soft wheat in 2009-2010. As of early April, France shipped 10.6 million tons of soft wheat outside the EU, up from 7.2 million tons in the same period a year earlier, said Christian Vanier, FranceAgriMer's deputy director. French farmers have been enjoying record demand for soft wheat since Russia stopped exporting grain during the summer, due to the effects of a sustained drought, and Southern Hemisphere supplies were disrupted by weather problems in Argentina and Australia.
Traditional consumers within the EU, such as Belgium and the Netherlands, are buying soft wheat from Germany, where lower quality led to lower prices. Those countries use wheat mainly as food for cattle. France sold higher-quality wheat mainly to Algeria, Egypt, Morocco, Cuba and other countries, for human consumption. French exports outside the EU represented about 68% of total exports, up from 45%-50% in normal years, FranceAgriMer said. As wheat prices are substantially higher than during the previous year, farmers are selling all the wheat they had stocked in 2009-2010, Vanier said. "Last year they had enough cash from 2008-2009 to stock some wheat and bet on a price recovery," he said. Soft wheat production in 2010-2011, at 36.7 million tons, will be close 2009-2010 output of 36.5 million tons, FranceAgriMer said. Ending stocks are likely to be 2.3 million tons, down from 3.4 million tons in 2009-2010.
According to FranceAgriMer's latest monthly data, corn production in the current crop year is seen at 15 million tons, almost unchanged from March and down from 16.6 million tons in 2009-2010. Ending stocks are seen at 2.5 million tons. Hard wheat production is seen stable at 2.8 million tons, with EU exports also stable at 900,000 tons and at 950,000 tons to non-EU. Ending stocks are seen stable at 2.8 million tons. As for barley, estimates are nearly unchanged compared with a month earlier, with production at 10.2 million tons, EU exports at 4.2 million tons, non-EU exports at 1.4 million tons and end stocks at 1.9 million tons against 1.6 million tons a month earlier.

Cocoa firms, focus on Ivorian mid crop; sugar steady
ICE cocoa futures rose as dealers anticipated near-term disruptions in Ivory Coast's mid crop even as exports are set to resume from the top producer after the political power struggle was resolved. Raw sugar futures on ICE firmed in early trade, with upside potential limited by bigger than expected Thai output.

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. "There was a lot of low grade coffee on offer and the warehouses are cleaning out the last bits of coffee because this is the end of the season. We will have one more auction on the April 21 and another on the 5th of May and I think that's it for the season."

Philippines says can export 60,000T more sugar to U.S. if asked
MANILA, April 13 (Reuters) - The Philippines could export an additional 60,000 tonnes of sugar to the United States this year, on top of the approved export quota allocation of 136,201 tonnes, given ample local supply, the local industry regulator's chief said .

Pakistan hikes 2010/11 sugar output estimate to 4.1 mln t
ISLAMABAD, April 13 (Reuters) - Pakistan estimates it produced 4.1 million tonnes of sugar from the 2010/11 crop, compared with 3.1 million tonnes last year, government and industry officials said on Wednesday.
The new estimate is up nearly 400,000 tonnes from the previous projection, despite initial fears that output would fall because of massive summer floods last year, that damaged several crops, including sugarcane

Indonesia's cocoa grinders to expand, consume more beans
JAKARTA, April 12 (Reuters) - Indonesian cocoa grinders expect to process 280,000 tonnes of cocoa beans this year, up about 55 percent from last year, as grinders expand capacity to benefit from a recent tax change on cocoa beans exports, an industry official said on Tuesday.
The government slapped an export tax on cocoa beans for the first time last April in an effort to encourage the retention of beans for local refining and possibly gain a premium in international markets.

Singapore's SMX launching copper, gold, silver trade
SINGAPORE, April 13 (Reuters) - The Singapore Mercantile Exchange will launch cash-settled gold, silver and copper futures contracts on April 15, the exchange said in a press release, which may carve out a new market for speculators seeking arbitrage opportunities.
"(The) exchange will begin trading cash-settled gold, silver and copper futures contracts from April 15, 2011, in contract sizes of 100 troy ounces, 5,000 troy ounces and 5 metric tons (MT) respectively," the exchange said in the note.

Japan March aluminium stocks down 3.3 pct m/m
TOKYO, April 13 (Reuters) - Aluminium stocks held at three major Japanese ports eased further at the end of March but remained within appropriate ranges, trading house Marubeni Corp  said on Wednesday, but stocks may rise if last month's quake dampens demand.
Marubeni, which collects data from the key ports of Yokohama, Nagoya and Osaka, said aluminium stocks came to 201,200 tonnes at the end of March, down 6,900 tonnes or 3.3 percent from February.

Train running late? Blame high copper prices
PARIS/MILAN, April 12 (Reuters) - Thieves lured by surging copper prices are creating a nightmare for European railways, sparking large-scale disruption, eroding profits and damaging their reputations.
Operators are pouring money into high-tech security measures they hope will prevent the theft of the metal after its price has more than tripled since early 2008 to over $9,000 per tonne.

Nickel market in 60,000 T surplus in 2011-INSG
LONDON, April 13 (Reuters) - The International Nickel Study Group (INSG) said it expects the global nickel market to record a 60,000-tonne surplus this year, compared with a deficit of 30,000 tonnes in 2010.
"The current INSG view for 2011 is for a modest stock build up which could grow if projects ramp up faster than estimated in the forecast," Lisbon-based INSG said in a release.

Indonesia's March tin exports jump 37.6 pct -ministry
JAKARTA, April 13 (Reuters) - Indonesia's refined tin exports rose 37.6 percent in March from the same month last year as smelters increased shipments to benefit from high prices and as rains eased, an official at the trade ministry said on Wednesday.
Indonesia, the world's top tin exporter, shipped 9,051.46 tonnes of refined tin in March, compared to 6,576.01 tonnes in March last year, trade ministry data showed.

METALS-Copper steady on risk appetite as JP Morgan supports
LONDON, April 13 (Reuters) - Copper steadied on Wednesday as a round of global risk aversion abated and solid J.P Morgan earnings buttressed hopes for bright results from other banks, while reports of declining copper output helped cushion prices.
LME copper  was untraded in rings but bid at $9,646/9,647 a tonne up from $9,630 at the close on Tuesday.
The metal used in power and construction hit a record high of $10,190 a tonne in February this year.

PRECIOUS-Gold recovers as dollar eases, haven buying up
LONDON, April 13 (Reuters) - Gold rose in Europe on Wednesday, recovering after its biggest one-day drop in nearly a month as the dollar retreated amid expectations the U.S. Federal Reserve will maintain its accommodative monetary policy for now.
Spot gold  was bid at $1,458.25 an ounce at 1116 GMT, against $1,453.95 late in New York on Tuesday. U.S. gold futures for June delivery  rose $4.90 an ounce to $1,458.50.

Copper in London Declines for Fourth Straight Day on China Demand Concerns (Source: Bloomberg)
Copper in London declined for a fourth day, the longest period of decline since January, as investors retreated on concern China may step up its credit tightening measures to cool asset prices. The metal for three-month delivery on the London Metal Exchange fell as much as 0.6 percent to $9,449.75 a metric ton, and trade at $9,450 by 8:05 a.m. in Singapore. It dropped to a one-week low of $9,443 a ton yesterday.

Gold May Rise to $1,600 an Ounce This Year on Investor Demand, GFMS Says (Source: Bloomberg)
Gold will rise as much as 9.5 percent this year to a record $1,600 an ounce, extending a rally that began in 2001, as investors boost demand for the metal as an inflation hedge, said researcher GFMS Ltd.

Crude Oil Trades Near a Two-Day High After U.S. Gasoline Supplies Decline (Source: Bloomberg)
Oil traded near a two-day high in New York after a U.S. government report showed gasoline supplies plunged the most in 12 years in the world’s biggest crude- consuming nation as demand climbed and refineries idled units.

Yen weakens, oil resumes climb as risk sought
SINGAPORE, April 13 (Reuters)-The yen weakened and Asian stocks headed higher, with investors looking for fresh opportunities to bet on risky assets after a sharp drop in oil the previous day caused an unwinding of positions.
"I think the markets at the moment are just pausing to take a bit of profit and assess things in the yen crosses," said David Forrester, FX strategist at Barclays Capital in Singapore.

20110414 1022 Soy Oil & Palm Oil Related News.

 Soy Oil chart reading : side way range bound.

Soybeans (Source: CME)
US soybean futures end higher, managing to stabilize after recent declines. After dropping nearly 6% since the start of April, coupled with tight supplies and solid demand, futures seemingly found some value, analysts say. A firmer cash basis for soybeans amid the absence of producer selling, and the uncertainties of the upcoming crop season -- in a year when large crops are counted on to replenish depleted supplies, buoyed prices as well. CBOT May soybeans rise 0.3% to $13.33 1/2 a bushel, and November soy adds 0.5% to $13.51 1/2.

Soybean Meal/Oil (Source: CME)
Soy product futures end mostly higher, finding stability after tumbling on a broad based sell-off Tuesday. Soyoil finished higher, buoyed by solid global vegoil demand and a recovery in crude oil futures, analysts said. Soymeal finished near unchanged, unable to hold initial gains on poor domestic demand, analyst said. CBOT May soyoil ended up 0.12c or 0.2% at 57.36 cent a pound, and May soymeal finished down $0.20 or 0.06% at $342.20 per short ton.

SURVEY: NOPA March Soy Crush Seen Up To 133.2M Bushels  (Source: CME)
Analysts and traders expect soybean crush rates for March to climb to about 133.2 million bushels in the National Oilseed Processors Association monthly report, up from the previous month on seasonal processing trends, according to a survey of industry analysts. NOPA's report on the March soybean crush is scheduled to be released Thursday at 8:30 a.m. EDT (1230 GMT). The month-over-month increase in the crush reflects a seasonal upturn in processing, attributed to more days for crushing in March than in February. Estimates for the report ranged from as low as 127.5 million bushels to as high as 137.5 million bushels. In the previous report, crush for the month of February was measured at 124.9 million bushels. Analysts said the crush would increase by about 8.3 million bushels in the March report. The NOPA report includes figures only from member processors.
Aside from the additional three days for crushing in March than February, "I'm only looking for a slight per diem decline from February crush because it looks as though product exports held up," said Anne Frick, senior oilseed analyst with Prudential Bache in New York. However, traders and analysts say the despite the higher crush, processing in March was still well below year-ago levels, as processing limps along amid weaker crushing margins and slower domestic meal use. Meanwhile, NOPA soyoil stocks in March are expected to decline to 2.974 billion pounds, from 3.102 billion pounds in February. Estimates ranged from as low as 2.925 billion pounds to as high as 3.022 billion pounds. Soyoil stocks are seen declining in relation to slightly lower daily processing rates, but managed to avoid any significant decline in stocks amid year-over-year improvement in processing yields.

Palm oil at 2-week low; downward price pressure expected
JAKARTA, April 13 (Reuters) - Malaysian palm oil futures traded at a near two week trough, tracking vegetable oils lower as market players expected further downside price pressure due to a higher production cycle. "Everything else is dipping -- from crude oil to the Dalian," said one trader. "Palm fundamentals are also looking bearish, but today there is little fresh news other than outside things like crude oil."

China buys more palm oil, discount to soyoil narrows
KUALA LUMPUR, April 13 (Reuters) - China, the world's No.2 vegetable oil buyer, chased palm oil cargoes on Wednesday as traders switch over to the tropical oil during the warmer months and avoid soyoil imports on ample supply.

Oil World ups Brazil, Argentine soy crop forecasts
HAMBURG, April 12 (Reuters) - Hamburg-based oilseeds analysts Oil World said on Tuesday it raised its forecast of  2011 soybean harvests for both Argentina and Brazil as crop  yields were better than expected despite recent unfavourable  weather in both countries.