Tuesday, April 19, 2011

20110419 1812 FCPO EOD Daily Chart Study.

FCPO closed : 3255, changed : +9 points, volume : higher.
Bollinger band reading : side way range bound little downside biased.
MACD Histrogram : falling, seller testing market.
Support : 3250, 3200, 3150, 3100 level.
Resistance : 3270, 3300, 3350, 3420 level.
Comment :
FCPO closed recorded marginal gain with higher volume transacted ahead of tomorrow export data while soy oil overnight closed recorded moderate gains and currently trading little lower. Market sentiment seems mixed as crude palm oil price discount to soy oil price continue to widen could triggered buying interest among importers after Reuters reported that China buyers have canceled six to eight soy cargoes since April for delivery in June to July and have deferred about 20 cargoes for July to September shipment but nevertheless the past 2 disappointing export data still play some influential factor.
Daily chart formed a down doji bar candle with long lower shadow closed about the same with yesterday candle near to lower Bollinger band level after market opened little higher, slide downwards and recovered upwards to closed near opening price recorded small gain.
Daily technical reading remained suggesting a side way range bound little downside biased market development possibly testing lower support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110419 1722 FKLI EOD Daily Chart Study.

FKLI closed : 1523.5 changed : +3 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : falling lower, seller in control.
Support : 1515, 1500, 1485, 1470 level.
Resistance : 1530, 1540, 1550, 1565 level.
Comment :
FKLI closed recorded small gain with lower volume participation doing 2 points premium compare to cash market while Asia markets ended mostly lower and European markets currently trading higher. News wise, Standard & Poor’s put the U.S. government on notice that it risks losing its AAA credit rating unless policy makers agree on a plan by 2013 to reduce budget deficits and the national debt resulted overnight U.S. market to fall 140 points.
Daily chart formed an up bar candle with lower shadow positioned in between middle and lower Bollinger band after market opened gap down, tested lower and recovered upwards all the way to registered small gains closed near the high of the day.
Side way range bound market development still in play from technical reading point of view testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110419 1555 Global Market & Commodities Related News.

Asian stocks fall after US credit outlook cut
SINGAPORE, April 19 (Reuters) - Asian stocks fell on Tuesday after rating agency Standard & Poor's lowered its U.S. credit outlook to negative, prompting a global flight to other assets.
"The overnight tumble of U.S. shares further deepened investor worries about the pace of the U.S. economic recovery," said Simon Liu, deputy investment officer of Polaris Group's asset management firm in Taiwan.

Brent falls below $121.50/bbl, but tension could reverse losses
SINGAPORE, April 19 (Reuters) - Brent crude slipped as concerns grew that high oil prices could hamper demand and curb economic growth, while U.S. crude futures were also hit after credit rating agency S&P lowered the country's outlook to negative.
"We are not driven completely by fundamentals. What's driving things is more the economic news and the political news in the Middle East," said John Vautrain of consulting firm Purvin & Gertz.

Argentine oil workers reach deal to lift strike
BUENOS AIRES, April 18 (Reuters) - Argentine energy workers have reached a deal to end a two-week-old pay strike that has hit oil and natural gas production in the Patagonian province of Santa Cruz, officials and union leaders said on Monday.
Workers at leading oil companies in Santa Cruz downed tools after rejecting a deal reached by union leadership for a roughly 25 percent pay increase, in line with estimated inflation.

Oil refiners have adequate supply -US Energy Secy
WASHINGTON, April 18 (Reuters) - U.S. Energy Secretary Steven Chu on Monday said oil refiners were adequately supplied despite the recent surge in crude prices that has raised concerns about the economic recovery.
Chu's comments came after Saudi Arabia's Oil Minister Ali al-Naimi said on Sunday oil markets were oversupplied and that the Kingdom had cut crude oil output by more than 800,000 barrels per day in March because of weak demand.

OPEC sees economic strain of high oil prices
KUWAIT, April 18 (Reuters) - Costly oil could place a major strain on consumer countries with fragile economies, OPEC ministers said on Monday, in their clearest statements yet that they believe fuel demand has shrunk.
Leading OPEC member Saudi Arabia on Sunday confirmed the kingdom had cut output by more than 800,000 barrels per day (bpd) in March because of weak demand.

Nigeria violence no direct threat to oil for now
YENAGOA, Nigeria, April 18 (Reuters) - Post-election unrest in northern Nigeria is far from its oil industry and poses no immediate threat to output, but neither is President Goodluck Jonathan's poll victory any guarantee of long-term peace there.
Results showed Jonathan, the first head of state from the Niger Delta oil region, as the clear victor in Saturday's election with close to 23 million votes to just over 12 million for his nearest rival, former military ruler Muhammadu Buhari.

Asia, Mideast officials agree oil market well supplied
KUWAIT, April 18 (Reuters) - Representatives from more than 20 Asian and Middle Eastern countries agreed that the world oil market is well supplied and that prices were being excessively pushed higher by geopolitical concerns, according to a final statement released following talks on Monday.
Asian ministers at the biennial Asia-Middle East Energy Roundtable said they were concerned that high oil prices may hamper the global economic recovery.

Wheat rises half pct, corn up as weather threatens crops
SINGAPORE, April 19 (Reuters) - U.S. wheat futures rose around half a percent on Tuesday, building on the previous session's 4 percent rally as dry weather threatened crops in top producers the United States, Europe and China.
"It is a weather inspired rally, which has been made all the more impressive as it comes against the rising U.S. dollar," said Garry Booth, a trader at MF Global Australia.

Floods cut Thai 2011 rubber output forecast cut by 1%
BANGKOK, April 19 (Reuters) - Thailand, the world's biggest rubber producer and exporter, should produce 3.46 million tonnes of rubber this year, down one percent from a January forecast due to heavy floods, the chief of an industry body said on Tuesday.
"We still believe we can produce around 3.46 million tonnes this year, or around 1 percent drop from the previous forecast," Luckchai Kittipol, president of the Thai Rubber Association, told Reuters, referring to a previous forecast of 3.49 million tonnes made in January.

China soy buyers cancel, defer cargoes on margins-CNGOIC
BEIJING, April 19 (Reuters) - Chinese soy buyers have cancelled six to eight soy cargoes since April for delivery in June to July and have deferred about 20 cargoes for July to September shipment, an official think tank said in a report on Tuesday.
Buyers may defer more cargoes if margins remain negative in the short term, said the China National Grain and Oils Information Centre (CNGOIC).

US farmers plant 7 pct of corn crop, below forecasts
CHICAGO, April 18 (Reuters) - U.S. farmers have seeded 7 percent of intended corn acreage so far this year, falling below trader expectations and the record planting pace of last year, U.S. Agriculture Department data showed on Monday.
Analysts had forecast the government to put corn plantings at 8 percent complete as of April 17, which would have matched the five-year average, a Reuters poll showed.

La Nina no longer hurting Argentine grains-expert
BUENOS AIRES, April 18 (Reuters) - The La Nina weather anomaly no longer poses a threat to Argentina's 2010/2011 grains harvest, after causing dryness in late 2010 that sparked worry about soy and corn crops, an expert said on Monday.
By next month La Nina's effect on crops will be nil, German Heinzenknecht, a meteorologist at the private Applied Climate Consultancy told Reuters.

Tunisia sees 2011 wheat harvest of nearly 2 mln T
TUNIS, April 18 (Reuters) - Tunisia expects a wheat harvest of almost 2 million tonnes this year due to more rain than in 2010, reducing the need for imports, Agriculture Minister Mokhtar Jallali said on Wednesday.
Tunisia has enough wheat stocks to last until July, he told a news conference.

Vietnam 2011/2012 coffee output seen up 10 pct
HANOI, April 18 (Reuters) - Vietnam's new 2011/2012 coffee crop is forecast to produce 22 million bags, up 10 percent from the current crop after higher prices spurred investment, an analyst at CoffeeNetwork said.
Farmers since last year have been investing profits in production, boosting the latest harvest beyond initial expectations. The harvest ended in late December, about a month earlier than usual.

LME copper up, technicals support; US debt warning weighs
SINGAPORE, April 19 (Reuters) - London copper prices rose on Tuesday, paring the previous session's losses with support from a positive near-term technical outlook, but the market remains under pressure after S&P's warning on the U.S. government's credit outlook.
"The market is reacting to the short term implications. It was a warning shot for the U.S. lawmakers to stop arguing and to pull together a plan to deal with their deficit," said Natalie Robertson, analyst at ANZ.

China steel demand to improve, uncertainties remain -CISA
SHANGHAI, April 19 (Reuters) - Steel demand in China, the world's biggest producer, is expected to rise during the upcoming strong consumption season, but the government's clamp-down on liquidity may inject uncertainties in the market, the China Iron & Steel Association (CISA) said on Tuesday.
"The monetary policy is likely to be tightened further to ease rising inflationary pressure, which will cause capital shortage on (steel) enterprises and bring uncertainties on (steel) market demand," CISA said in its monthly report.

Gold firms below record on sovereign debt worry
SINGAPORE, April 19 (Reuters) - Spot gold firmed slightly below its record high on Tuesday, as worries over sovereign debt in both Europe and the United States continued to lure investors to bullion.
"There is so much news that is in favour of gold," said a Singapore-based dealer.

20110419 1110 Global Market & Commodities Related News.

GLOBAL MARKETS: Asian stocks fall after US credit outlook cut
SINGAPORE, April 19 (Reuters) - Asian markets fell on Tuesday after rating agency Standard & Poor's lowered its U.S. credit outlook to negative, prompting a global flight to other assets.
The euro nursed heavy losses early in Asia while the yen gained across the board as worries about sovereign debt problems in Europe and the United States prompted investors to unwind carry trades.

OIL:Crude remains weak on bearish demand outlook led by US
SEOUL, April 19 (Reuters) - U.S. crude futures extended losses in early Asian trade on Tuesday after credit rating agency S&P lowered its U.S. outlook to negative and OPEC ministers said high crude prices could weigh on consumer economies.
OPEC ministers said on Monday costly oil could place a major strain on consumer countries with fragile economies. The comment followed leading OPEC member Saudi Arabia's confirmation on Sunday that the kingdom had cut output by more than 800,000 barrels per day in March because of weak demand.

Oil companies go solar to tap hard-to-get supplies
LOS ANGELES, April 18 (Reuters) - Soaring oil prices are turning some energy companies into accidental environmentalists: They are building clean, solar-powered  systems to pull crude out of their aging wells.
But this is no public relations move by big polluters seeking to green their images. Having spent heavily on energy-intensive technology to increase output from depleted fields, companies including Chevron Corp  and Berry Petroleum Co  are using solar power to lower the cost of creating steam that is injected into the wells to improve the flow of heavy oil.

Volatility bigger concern than oil price-SKorea
KUWAIT, April 18 (Reuters) - South Korea, the world's fifth largest importer of crude, is more worried about volatility than the outright level of oil prices, its deputy minister for energy and resources policy said on Monday.
Brent crude  hit a peak of more than $127 a barrel earlier this month, its highest in more than two and a half years, but had retreated below $122 a barrel on Monday.

Libya rebel oil firm plays down export prospects
BENGHAZI, Libya, April 18 (Reuters) - Libyan rebels are unlikely to export any more oil until they are able to resume production but are keeping in touch with potential buyers, an oil official in the opposition-held east said on Monday.
The rebels control fields owned by the Arabian Gulf Oil Company (Agoco), including Nafoora, Misla and Sarir, which have a combined potential production capacity of about 400,000 barrels per day, Wahid Bugaighis told Reuters in an interview.

NATURAL GAS: Natural gas ends down on S&P US credit outlook
NEW YORK, April 18 (Reuters) - Front-month U.S. natural gas futures ended lower on Monday after an early run up, pressured by news that deficit concerns prompted Standard & Poor's to issue a negative outlook on its credit rating for the United States. "The weather is a little supportive, but the market sold off on the S&P statement," a Florida trader said, adding the market was in a trading range and likely to stay in it for a while.
COMMODITIES: Mostly down after S&P U.S. revision; gold at record
NEW YORK, April 18 (Reuters) - Gold shot to record highs of nearly $1,500 an ounce on Monday and most other commodities fell as investors turned to safe-haven assets after Standard & Poor's threatened to cut the United States' AAA credit rating.
"It's a wake-up call that we need to do something in the U.S.," Axel Merk, portfolio manager at Merk Hard Currency Fund in Palo Alto, California, said after S&P downgraded its credit outlook for the United States.

20110419 0950 Global Economic Related News.

U.S: Standard & Poor's puts 'negative' outlook on rating. Standard & Poor's put the U.S. government on notice that it risks losing its AAA credit rating unless policy makers agree on a plan by 2013 to reduce budget deficits and the national debt. "If an agreement is not reached and meaningful implementation does not begin by then, this would in our view render the U.S. fiscal profile meaningfully weaker than that of peer 'AAA' sovereigns," New York-based S&P said in a report that maintained its top rating on U.S. long-term debt while lowering the outlook to "negative" for the first time. (Source: Bloomberg)

Ireland: Fitch Ratings said Ireland's solvency remains "fragile" and an improvement in the country's debt situation will depend on economic growth and the government's fiscal plan. Ireland's state debt may rise to as high as 116% of GDP in 2013 to 2014, leaving the government "with much-reduced flexibility to respond to future shocks and crises," Fitch said in a report published in London. (Source: Bloomberg)

EU: ECB officials signal more rate increases this year as economy strengthens
European Central Bank Governing Council members signaled they will keep tightening monetary policy this year to curb inflation as the economy strengthens. Investor expectations that the benchmark interest rate will be increased by another 50 basis points in 2011 are “well- founded,” Austria’s Ewald Nowotny told Bloomberg News in Washington on 16 April. Luc Coene of Belgium said in an interview yesterday that monetary “conditions are too accommodative.” (Bloomberg)

EU: Greek default drive risks reviving Euro-region contagion as bonds plunge
European investors and politicians prodding Greece to restructure its debt may end up wishing they hadn’t. Talk of restructuring spurred by Germany risks re-igniting Europe’s debt crisis, enveloping Spain just weeks after European leaders said bailouts of Greece, Ireland and Portugal ended contagion. Under a Greek default, Europe’s financial system would strain as banks in and outside Greece and holders of Greek bonds, such as the European Central Bank and domestic pension funds, tally losses. “By restructuring Greek debt you also may precipitate a crisis in Spain,” David Watts, a strategist at CreditSights Inc. in London, said in a telephone interview. “At that point it doesn’t matter how much you’ve saved by restructuring Greece, the fallout from Spain is much greater. The issue comes back to not knowing the ultimate cost.” (Bloomberg)

EU: Portugal aid talks under a cloud A crucial new phase of Portugal's bailout negotiations began under a cloud yesterday after an anti-euro party in Finland that has vowed to derail the pending rescue scored strong gains in an election. Portuguese debt premiums rose to new record highs in early trading, also pushed up by talk of Greek debt restructuring, which Athens again denied. Representatives of the European Commission, the European Central Bank and the International Monetary Fund (IMF) are in Lisbon to set the terms for what would be the Eurozone's third bailout in a year after multi-billion euro deals for Greece and Ireland. (Bloomberg)

China: New home price growth slowed in Beijing and Shanghai in March as the government intensified property curbs, sending the property stock index to its highest in a year. New home prices in the capital of Beijing rose 4.9% YoY in March, easing from a 6.8% YoY gain in February. Of the 70 cities monitored by the government, 67 cities posted gains, down from 68 in the first two months, the data showed. (Source: Bloomberg)

Japan: Repeals gasoline tax cut as it secures rebuilding funds. Finance Ministry said it will override a law that automatically lowers gasoline prices when costs surge, as the government secures funds to rebuild from the nation's record earthquake. Finance chief Yoshihiko Noda agreed with members of his tax panel this morning to "temporarily freeze" the measure, which cuts levies if gasoline exceeds JPY160 per liter for three straight months, Vice Finance Minister Fumihiko Igarashi told reporters in Tokyo. (Source: Bloomberg)

Singapore: Singapore March NODX rises more than expected
Singapore's non-oil domestic exports (NODX) grew more than expected in March from the prior year, data from the International Enterprise Singapore showed Monday. NODX increased 10% year-on-year in March following the 6.9% rise in February, due to non-electronic exports. Economists had expected the growth rate to ease to 4.5%. On a month-on-month seasonally adjusted basis, NODX decreased by 2.9% in March, compared to the previous month's 2% growth. At the same time, non-oil re-exports fell 2.1%, smaller than the 4.2% decline in the previous month. (Bloomberg)

20110419 0949 Malaysia Corporate Related News.

  KLCI chart reading :
correction range bound little upside biased.

Maybank: Gets approval to raise USD2b, Bio-Xcell gets funding from Maybank. Malayan Banking Berhad (Maybank) has obtained approval from the Securities Commission (SC) to establish a multi currency medium-term notes (MTN) programme of up to USD2b. Separately, Maybank and Malaysian Bio-Xcell Sdn Bhd (Bio-XCell) has signed an agreement for a RM250m Commodity Murabahah Term Financing - Islamic Facility (CMTF-i). (Source: Bursa Malaysia, The Star)

Axiata: Celcom signs fiberisation deal with Sacofa. Celcom Axiata Bhd signed a RM168m fiberisation leasing agreement with Sarawak-based Sacofa Sdn Bhd. With the completion of this project, Sarawakians will be able to enjoy enhanced services such as high-definition voice and video plus high-speed browsing with Celcom. (Source: The Star)

Affin: To convert Indonesia's Bank Ina into Islamic lender. Indonesia's conventional bank PT Bank Ina Perdana, which is being acquired by Affin Holdings Bhd will be converted into an Islamic bank - a process that will likely take two years. (Source: Business Times)

Construction: CMC, UK partner may win RM700m LRT job. CMC Engineering Sdn Bhd and UK's Colas (CMC-Colas) may win a contract worth some RM700m for electro-mechanical (E&M) system for the Kelana Jaya light rail transit (LRT) extension line. Tenders closed recently and Prasarana may award the contract by early May. (Source: Business Times)

Autos: Vehicle sales up 12.7% in March. Total vehicle sales surged 12.7% to 63,265 units in March 2011 from 56,139 units a year earlier due to a rush for deliveries and invoicing by companies that have their financial year ending in March. (Source: The Star)

Mining: Indonesian tin miner to list on Bursa Malaysia. Malaysia Smelting Corp Bhd (MSC) is proposing to list its Indonesian unit, involved in tin mining, on Bursa Malaysia's Ace Market. (Source: The Star)

Celcom in RM168m deal to push fibre-optic usage
Celcom Axiata will invest RM168m to enable faster transmission of data through its base stations. Celcom had struck a deal with Sarawak’s Sacofa for a 10-year fiberisation leasing agreement which will see all of Celcom’s node-b and base stations in Sarawak use fibre optics. This will provide trunk capacity throughout the state as well as provide cross-ocean submarine capacity. The infrastructure is set for completion within two years’ time. (Malaysian Reserve)

Three foreign firms pump in RM500m in biotech push
Malaysia has secured three foreign investors who have pumped in some RM500m to set up their manufacturing facilities as part of the country’s push for a regional biotechnology hub. Bio-XCell SB, which develops the Bio- XCell park within Iskandar Malaysia, has signed up India’s Biocon, France’s METabolic Explorer and US-based Glycos Biotechnologies as key tenants. The three investors will occupy more than 100 acres. Bio-XCell park’s first phase is said to cost as much as RM950m to develop. With RM500m in the form of foreign investment and RM250m debt, the remaining RM200m will be funded by shareholders’ equity. (FinancialDaily)

Vehicle sales at all-time month high
Total vehicle sales surged to an all-time month high of 12.7% to 63,265 units in March 2011 from 56,139 units a year earlier due to a rush for deliveries and invoicing by companies that have their financial year ending in March. YTD March 2011 sales volume increased by 7.5% y-o-y, up from 4.3% as at YTD February 2011. (StarBiz)

28 April decision on EON Capital legal tussle
The long-drawn legal tussle involving directors and shareholders of EON Capital and its single largest shareholder Primus Pacific Partners may see some light soon, with a court decision expected on 28 April. Yesterday was the last day for counsels from both sides to present their oral submissions before the decision is made. The decision on the case, well into its tenth month, will be delivered at the Penang High Court (StarBiz) 

20110419 0935 Global Commodities Related News.

Corn (Source: CME)
US corn futures finish higher on concerns about poor weather disrupting planting. Corn planting will stay "very slow" due to cool, wet conditions in the US Midwest and northern Plains this week, according to MDA EarthSat Weather. A weekly government crop-progress report next Monday should confirm expectations seeding will not advance much this week, traders predict. Today's report will likely show planting is 6%-10% complete, up from 3% last week, traders say. CBOT May corn ends up 9 3/4c at $7.51 3/4 a bushel.

Wheat (Source: CME)
US wheat futures finish higher as dry weather threatens global output. Dryness persists in the US Plains, fueling talk it may be too late for rain to revitalize the crop if it arrives. Hard red winter wheat in the region has been too dry since it was sown last fall. In China, "dryness remains a significant concern," according to MDA EarthSat Weather, which notes drought-busting rainfall is not expected. Western Europe also needs more moisture. CBOT May wheat climbs 30 3/4c to $7.75 a bushel, KCBT May gains 30 1/2c to $8.96, MGE May jumps 25c to $9.14.

Rice (Source: CME)
US rice futures finish stronger with the neighboring grain markets. A 4.5% rally in wheat futures helped lift rice as both are global food staples, traders say. Corn and soybean futures also strengthened, adding to the positive tone. Yet, large global rice supplies kept a lid on advances, an analyst notes. CBOT May rice edges up 1c to $13.64 1/2 per hundredweight.

Russian Wheat Ban Won't Be Lifted Before July - SovEcon (Source: CME)
Russia will definitely not lift its ban on grain exports before July 2011, the managing director of SovEcon, a Russian agriculture research and consulting body said, quashing rumors the Kremlin could move sooner as "completely false". The Kremlin banned grain exports last summer after the worst drought in more than a century slashed the harvest by around a third to 63 million metric tons. However, speculation has been building that the government may soon lift the embargo due to falling internal prices and hopes for a 90-million-ton harvest this year. But Andrey Sizov Jr. said at the sidelines of a conference here that the harvest will still not be large enough to warrant allowing exports before the Russian summer. He pegged the upcoming harvest at 75-80 million tons, below the government's estimate, and only 5-10 million tons above domestic consumption of an estimated 70 million tons.
"Although we see a higher crop being forecasted, its still doesn't help Russia to lift its ban as it's an average crop," he said, adding that "even if Russia lifts the ban, it's not a case of a ban or no ban. The government could even bring in quotas afterwards." However, he estimated that once exports are allowed, Russia could ship between 5 to 10 million tons of wheat in the upcoming 2011-12 season to hungry world markets. Russia's domestic grain prices have slumped in recent weeks due to a growing consensus the market may have more supplies than previously thought. The Russian Grain Union estimates the country may have up to eight million tons more grain than originally thought as farmers have stockpiled supplies, and several million tons sitting in elevators in the south has not been sold. Sizov said grain prices have been falling due to lower domestic feed grain consumption by an increasingly-efficient livestock sector.
He also said grain supplies in Russia are not as abundant as some observers believe and the country has still resorted to 10,000-20,000 tons of corn imports in recent months. "Yes its true that stocks in the south are high, but we must remember the total figure includes two million tons of state grain," he said.

Tunisia sees 2011 wheat harvest of nearly 2 mln T
TUNIS, April 18 (Reuters) - Tunisia will have a wheat harvest of almost 2 million tonnes this year due to more rain than in 2010, Agriculture Minister Mokhtar Jallali said on Wednesday."The wheat harvest will be good this year," he told a news conference.

China's Cabinet Calls For Stronger Seed Industry (Source: CME)
China's State Council, the country's cabinet, issued guidelines calling for faster development of a modern seed industry to help raise domestic grain production. The fragmented and relatively undeveloped seed sector is hindering the sustainable development of the agriculture industry, it said. The government plans to promote independent research and development of high-quality seeds, ensuring sufficient supplies of grain seeds by 2020, the council said in a statement published on the central government's website. National seed reserves are planned for hybrid corn and rice to ensure market supply and keep prices stable, and to build provincial seed reserves for other agricultural commodities, the council said. The government will sharply increase the threshold for access to the seed market, encourage mergers and acquisitions in the sector to boost competitiveness, and give tax breaks to qualified seed firms.
It will also regulate foreign companies' seed collection, research and development, production and trade activities in China, and strengthen security reviews of their acquisitions of domestic seed companies, the council said. "The guidelines will be good news for foreign companies," Ma Shuping, deputy director of plantation management department under the Ministry of Agriculture, said during a press conference. "The launch of the guidelines is good for all seed companies," she said. "There is no exception for foreign seed firms." However, she said, "foreign seed companies do put us under pressure." China's Ministry of Agriculture last December ordered producers to stop producing and selling 27 varieties of corn seeds on the domestic market, including two of Monsanto Co.'s, without elaborating the reasons for the ban. Analysts said some of these corn seeds were genetically modified varieties that aren't approved for use in China.
China currently has more than 8,700 approved seed companies, but only 100 of them have research and development capacity, Ma said. The 35 foreign-funded companies operating in the country comprise five in corn seeds, two in cotton and 28 in vegetable and flower seeds, she said.

Low Freight Costs To Boost Odd Grain Trades In '11-12-Agency (Source: CME)
An oversupply of vessels in the global shipping market means grain buyers will be able to source from unusual suppliers well into next season, a director at Clarksons shipping agency said. Earlier this month, U.K. grain trade house Gleadell said it shipped 7,200 metric tons of milling wheat to Turkey in the first ever milling wheat shipment there from U.K. shores. Speculation of other unusual buys, such as large imports of U.S. corn by China, have also been rife this year after a succession of weather problems have slashed harvests in many producers and left importing countries scrambling to secure supplies. "This shipment to Turkey is a pointer to the future and shows that there are markets out there that we can find if the quality and price is right," said Gleadell trading manager Marc Rogerson. Clarksons director Essem Bella said the oversupply of vessels in the dry bulk market makes unorthodox grain trades feasible, a situation not likely to change anytime soon.
The cost of shipping corn from the U.S. to the German port of Hamburg is pegged at $30/ton, down by 25% compared to the same period last year. "Basically, in a grains market that is now tight, countries can experiment with their portfolios and source from varying countries more than ever before," Bella said on the sidelines of a conference here. The BDI, the daily barometer of shipping prices from London's Baltic Exchange, fell 60% from October to its lowest level in two years in January due to a glut of available ships in the world market. The earthquake in Japan has caused further uncertainty as shipping suppliers have tried to guage when the country's metals and energy imports will return to normal after the disaster crippled ports and other infrastructure.

U.S. corn falls half pct on Goldman view, wheat steady
U.S. corn futures slid around half a percent , losing more ground after last week's selloff as downbeat outlook from Goldman Sachs and substitution of corn in favour of wheat weighed on the market. Soybeans fell 0.2 percent, while wheat was steady as a strengthening dollar added pressure on the commodity markets, including oil. "In the corn market, we expect profit-taking to go on and also there is speculation that animal feed makers are using feed wheat as a substitute for corn," Ker Chung Yang, an analyst at Phillip Futures in Singapore. 

S.Africa's maize crop f'cast seen at 10.8 mln T
JOHANNESBURG, April 18 (Reuters) - South Africa's third maize output traders' forecast for the 2010/11 season is seen at 10.8 million tonnes compared with 10.97 million tonnes in the previous forecast, a Reuters survey showed on Monday.The government Crop Estimates Committee's (CEC) third survey of output for the season would maintain
last month's estimate of 10.831 million tonnes, according to the average estimates of eight trading houses polled by Reuters.

Rains help US wheat but halt corn planting
CHICAGO, April 15 (Reuters) - The turn to wetter conditions across the central United States this week brought much-need rains to western wheat fields but halted spring corn planting in the upper Midwest, a forecaster said on Friday."This is just a classic wet pattern that has developed very quickly," said Telvent DTN forecaster Mike Palmerino.

Arabica coffee climbs, bullish technicals support
Arabica coffee prices rose on Monday, edging towards the 34-year high hit in March, as bullish technicals supported the market. The rainy season will arrive in Vietnam's Central Highlands coffee belt and in the southern region that includes the Mekong Delta food basket later this month, which is earlier than usual, a state-run newspaper reported.

S.Asia monsoon seen normal in 2011-weather forum
PUNE, India, April 15 (Reuters) - South Asia is likely to receive normal monsoon rains in 2011, a gathering of global weather forecasters said on Friday, good news for countries such as India whose massive demand for farm goods impact international markets.The quality of monsoon rains will be critical not just for India's economic growth but also for reining in food-led inflation, which rose by nearly 9 percent in March.

Thai 2010/11 sugar output to hit record 9.0 mln tonnes
BANGKOK, April 18 (Reuters) -     Thailand, the world's second-biggest sugar exporter, expects record production of 9.0 million tonnes in its current 2010/11 crop, up 30 percent from the previous year and 32 percent above a December forecast, senior officials said on Monday.The Office of Cane and Sugar Board (OCSB), the industry's regulator, said heavy rainfall in late 2010 and an increase in planting areas led to higher-than-expected cane production that will leave Thailand with a record 6.2 million tonnes for export.

La Nina to bring rains to Vietnam early this year
HANOI, April 18 (Reuters) - The rainy season will arrive in Vietnam's Central Highlands coffee belt and in the southern region that includes the Mekong Delta food basket later this month, which is earlier than usual, a state-run newspaper reported on Monday.Early rains could help ease extensive dry conditions now facing the Central Highlands, which produces 80 percent of the coffee output in the world's second-largest producer of the commodity after Brazil.

Vietnam 2011/2012 coffee output to rise 10 pct
HANOI, April 18 (Reuters) - Vietnam's new 2011/2012 coffee crop is forecast to produce 22 million bags, up 10 percent from the current crop, thanks to higher prices, an analyst at CoffeeNetwork said."The suggestion is that Vietnam's 2011/12 crop will rise from 2010/11 due to improved prices -- even though production costs are higher due to fuel costs/wages etc.," analyst Andrea Thompson at the coffee information firm wrote in an email to Reuters.

China to import sugar aggressively on weak Brazil prices- ANZ
BEIJING, April 18 (Reuters) - China is likely to buy sugar aggressively over the next half a year and could import up to 1.8 million tonnes in three to four months, to capitalise on weak prices especially from Brazil, said a report by Australia and New Zealand Banking Group Ltd.  "With China in strong need to replenish domestic supplies and ease the rise of further inflationary pressure from higher domestic sugar prices, China's pent-up demand for sugar imports is strong," Paul Deane and Victor Thianpiriya wrote in the report.

Peru 2011 sugar output seen up 13 pct-attache
WASHINGTON, April 15 (Reuters) - "Cane sugar production for CY2011 is estimated at 1.145 million tonnes, up from 1.016 million tonnes in CY2010. During the first four months of CY2010, several factors contributed to the significant reduction of Peru's sugar production, reducing stocks to 30 percent of the Peruvian monthly requirements which pushed prices in the local market up to $750 per tonne. Peruvian sugar exports in CY 2011 are estimated at 100,000 tonnes. Post expects that Peru will become self sufficient in the next three years."
Despite Global Hiccups, Biodiesel Industry Booms In Argentina (Source: CME)
While high costs have shuttered biodiesel plants in many parts of the world, output of the fuel in Argentina is soaring thanks to government incentives, strong export demand and readily available supplies of soybeans that carpet the country's vast farming belt. According to Argentina's Rosario Grain Exchange, the country's biodiesel production is expected to rise 24% on the year to 3.1 million metric tons in 2011. The exchange has forecast sales of more than $2.8 billion this year, divided equally between exports and the domestic market. Last year, 1.3 million metric tons were sold overseas, virtually all to Europe, making Argentina the world's top biodiesel exporter and the No. 4 producer. Local biodiesel makers are betting that mandatory fuel blending requirements in many countries will underpin demand. Global production of biofuels like ethanol and biodiesel has surged in recent years thanks to subsidies and blending requirements in the U.S. and Europe.
However, high costs have put the industry under pressure in several countries, including Spain, where producers complain they can't compete with cheap Argentine imports. According to Hart Energy Consulting, global biofuels demand will grow 133% by 2020, but supplies will fall short by more than 32 billion liters (8.5 billion gallons) over the same period. Argentina's 12 leading biodiesel producers, including grain exporters like Cargill and Bunge Ltd., have spent $700 million to build plants and have earmarked another $200 million to expand capacity. But the industry seems to be close to its saturation point and few newcomers are expected on the production side, said Fernando Pelaez, chief executive of biodiesel producer Unitecbio and president of the Argentine biofuels chamber, Carbio. That hasn't stopped investors from seeking opportunities in other aspects of the business.
Last month, German chemical makers Evonik Industries AG and BASF SE said they would each build a plant to produce catalysts used to make biodiesel. "With the global market growing at double digits, new capacity is needed," and Brazil and Argentina will be the focus in the future, Evonik spokeswoman Edda Schulze said in an emailed statement.

Food Prices Pushing Poor To 'One Shock Away' From Crisis - World Bank Chief (Source: CME)
Spiking food prices have pushed the world's poor countries to "one shock away from a full-blown crisis," the head of the World Bank warned. "This is the biggest threat today to the world's poor, where we risk losing a generation," bank president Robert Zoellick said at a press conference on encouraging global development. The World Bank and the International Monetary Fund say the skyrocketing food and fuel prices are the most serious near-term risk to developing economies. "I'm concerned that commodity stocks are relatively low and if you have one other weather event in some of these areas, you really take a danger zone and start to push people over the edge," Zoellick said. "That's why we need also need measures on the volatility side," he said at a press conference at the end of the World Bank and IMF spring meetings.
The bank earlier this week said that its index of food prices showed the cost of basic food was up 36% on the year in March, and since June of last year 44 million people had fallen below the poverty line around the world as a result of higher food prices. If prices rise further, tens of millions more could also be pushed into poverty, the World Bank warned. Zoellick said the bank is working to get agriculture ministers from the Group of 20 largest industrialized and emerging countries to approve a list of polices, which could help fend off a full-blown crisis, at their meeting in late June. Specifically, the president said the G-20 should agree to exempt export bans for humanitarian purchasers such as the World Food Program. "Export programs are a bad idea anyway, I think some of that will get tied up in trade policy, but at least with prices going up and as countries take steps like export bans, we need the humanitarian purchasers to at least get access," he said.
Although the G-20 is already supporting the proposal, he said the World Bank wants to help the U.N.'s Food and Agriculture Organization improve information about the quality and quantity of grain stocks around the world. Also, in high-conflict areas such as in the Horn of Africa where there is a high probability of food shortages, organizations such as the U.N.'s global food program could build stocks. "This wouldn't be buffer stocks to manage prices, but humanitarian aid," Zoellick said. The World Bank could also help developing countries that don't have the capability to tap advanced commodity and futures markets to help hedge against unforeseen food shortages, working with U.S. and European banks. "We could provide them intermediary service," he said.

Playing With Your Food: Investors Are Pouring Money Into Crop-Focused ETFs (Source: CME)
Corn costs more than twice what it did last June. Wheat futures have shot up by three-quarters. Soybeans have soared by nearly half. For lots of investors, those are mouth-watering numbers -- and they're snapping up exchange-traded products that specialize in agriculture. But moving into this market can mean risks and complications. The returns of crop-focused funds can vary significantly from the prices in news headlines, due to the quirks of futures investing. And some funds hold shares in agriculture and food companies, which can be hurt as well as helped by rising commodity prices. Of course, there's an even more basic worry -- that commodity prices will fall instead of rise. Cotton shot up over 50% from early January to early March, and then dropped nearly 15% within two weeks. In the first two months of this year, buyers poured $1 billion into one of the largest agriculture-related ETFs, Market Vectors Agribusiness, according to National Stock Exchange, a data provider.
What's more, new investment products are coming to market to meet investor demand. Teucrium Trading LLC, for instance, launched a corn-futures fund last June and is talking to regulators about opening similar funds for wheat, soybeans and sugar. Behind all the activity is a simple assumption: Food is a basic human need, and people in the developing world will want more of it as their living standards rise. But just because food prices are soaring doesn't mean a commodity ETF will. The returns of funds that track just one crop are sensitive to supply-and-demand fundamentals for that crop. Corn stockpiles are at a 15-year low, for instance, a major force driving prices higher. That's unlikely to last forever, though. "You'll see farmers pulling out their wives' rose bushes to plant more corn," says Nicholas Johnson, co-manager of the $27 billion Pimco CommodityRealReturn Strategy mutual fund.
It might take a season or two, or more, to replenish supplies, but prices are likely to fall, perhaps significantly, as that happens. (Mr. Johnson says his fund has a short position in corn, meaning a bet that will pay off if prices fall. The fund is hedged by betting on a rise in soybean prices, he adds.) Alternatively, investors can pick a fund that tracks a range of crops. The upside is that the fund won't necessarily tumble if one or more holdings takes a fall. But investors may not see outsize returns if one commodity goes through the roof.

Major market developments in March
LONDON, April 15 (Reuters) - Aluminium prices made some headway in March from the previous month, and some analysts anticipate further gains as demand outpaces supply, but others expect downward pressure to hold sway.
"There's a bit more upside in prices," said Barclays Capital analyst Gayle Berry.
"We're not going to seen an explosion, but there's a very strong recovery in demand globally, and production is growing at a slower pace relative to demand," she added.

U.S. March aluminum output rises 10.5 pct yr/yr
NEW YORK, April 15 (Reuters) - The annual rate of primary U.S. aluminum production rose 10.5 percent to 1,906,619 tonnes in March from 1,725,567 tonnes in March 2010, and grew 4.8 percent from February's annual production rate of 1,819,290 tonnes, the Aluminum Association said in its latest report.
For the first quarter, the annual rate of production rose to 1,837,507 tonnes, up 8.3 percent over the 1,697,205 tonnes produced in the comparable 2010 period.

Major market developments in March
LONDON, April 15 (Reuters) - Copper prices lost some ground and momentum in March and may have further to fall on near term worries about China demand prospects.
"A lot of the good news is already in the price. There's room for some pull back in prices, mainly because China is not coming back to the table," said Fastmarkets analyst Will Adams.

Global apparent steel use to rise to record in 2012
LONDON, April 18 (Reuters) - Global apparent steel use will rise to a record 1.441 billion tonnes next year, driven by overall economic recovery, the World Steel Association said on Monday.
"In 2010 we saw a steady recovery of steel demand, which began in the second half of 2009, driven by stimulus packages globally, the resilience of emerging economies and overall markets recovery," Daniel Novegil, chairman of World Steel's economics committee.

China steel output growth lower over next 5 years-Xinhua
SHANGHAI, April 16 (Reuters) - China's steel output growth is expected to  average 6 percent per year over the next five years, the chief analyst for the China Iron and Steel Association (CISA) was quoted as saying on Saturday.
The state-run Xinhua news agency cited CISA's Li Shijun as saying this compared with steel output growth of 12 percent a year from 2006 to 2010 and nearly 23 percent output growth in the five years prior to that.

Italy 3-months steel output up 8 pct -Federacciai
MILAN, April 18 (Reuters) - Steel output in Italy, the European Union's No. 2 producer after Germany, rose 8 percent year-on-year to 6.962 million tonnes in the first three months of 2011, industry body Federacciai said on Monday.
In 2010, the output figure had jumped nearly 30 percent to 25.75 million tonnes as the sector started recovering from the economic crisis, which hit it hard in 2009.

METALS-Copper falls as dollar, China move dent sentiment
LONDON, April 18 (Reuters) - Copper fell on Monday, on track for its sixth straight session of losses, after equities dropped, the dollar rose and top world metals consumer China raised banks' required reserves.
Copper for three-months delivery  on the London Metal Exchange traded at $9,364.75 a tonne at 1116 GMT, from a close of $9,405 a tonne on Friday.

PRECIOUS-Gold retreats from record as euro slides 1 percent
LONDON, April 18 (Reuters) - Gold eased from record highs on Monday as the dollar rose 1 percent versus the euro, but prices took support from worries over euro zone debt and inflation in Asia after China opted to raise reserve requirements again.
Spot gold  rose as high as $1,488.50 and was bid at $1,481.10 an ounce at 1123 GMT, against $1,483.75 late in New York on Friday. U.S. gold futures for June delivery  eased $4.30 an ounce to $1,481.70, off a record $1,489.70.

Oil Near Three-Day Low After China Bank Move Prompts Fuel-Demand Concerns (Source: Bloomberg)
Oil traded near a three-day low in New York after China, the world’s second biggest crude-consuming nation, increased banks’ reserve requirements to cool inflation, signaling fuel demand growth may slow.

Gold Futures Climb to Record After S&P Revises U.S. Outlook to Negative (Source: Bloomberg)
Gold futures rose to a record $1,498.60 an ounce after Standard & Poor’s revised its U.S. credit outlook to negative, boosting the appeal of the precious metal as an alternative to the dollar. S&P changed its long-term rating from stable, citing “material risk” that policy makers won’t reach an accord on “medium- and long-term budgetary challenges.” Gold has gained 31 percent in the past year, and silver has more than doubled, partly on concern that Europe’s sovereign-debt crisis would escalate.

20110419 0933 Global Market Related News.

DJIA chart reading : side way range bound.

Hang Seng chart reading : correction range bound upside biased.

G-20 Targets ‘Too Big to Ignore’ Economies as Growth Will Outweigh Shocks (Source: Bloomberg)
The U.S., China and five other large economies will face deeper scrutiny from their peers to ensure their policies don’t derail a global expansion that finance chiefs bet is strong enough to absorb recent shocks.

Asian Stocks Retreat as U.S. Credit Outlook Cut; Tepco Slides on Radiation (Source: Bloomberg)
Asian stocks fell, leading the benchmark index lower for a third day, after Standard & Poor’s Ratings Service cut the U.S. long-term credit outlook, fueling concern that a recovery in the global economy may slow.

Sales Increases at More U.S. Companies Signal Payroll Gains, Survey Shows (Source: Bloomberg)
More U.S. companies than at any time since 1994 reported sales gains in the first quarter, a sign they’ll keep hiring and investing, a survey showed. The percentage of businesses reporting an increase in sales in the past three months climbed to 63 percent, while fewer companies said revenue fell, according to a survey issued today by the National Association for Business Economics.

Standard & Poor’s Puts ‘Negative’ Outlook on U.S. AAA (Source: Bloomberg)
Standard & Poor’s put the U.S. government on notice that it risks losing its AAA credit rating unless policy makers agree on a plan by 2013 to reduce budget deficits and the national debt.

China Must Cut Foreign-Exchange Reserves, PBOC’s Zhou Says (Source: Bloomberg)
China needs to reduce its foreign- exchange reserves as they exceed the level the nation requires, central bank Governor Zhou Xiaochuan said. The management and diversification of the holdings, which topped $3 trillion at the end of March, should be improved, Zhou said after a speech at Tsinghua University in Beijing late yesterday. The rapid accumulation is putting pressure on the sterilization operations of the People’s Bank of China, he said.

China Crops in Short Supply as Fewer Farms Spur Food Futures (Source: Bloomberg)
Across the road from Zhao Yuanyi’s wheat field in China’s Shandong province, Chonche Group is expanding a rail-car factory on what used to be 227 hectares of farms. Nearby, Geely Automobile Holdings Ltd. makes sedans on an 87 hectare site that four years ago was covered by crops. The factories sprawling from Jinan city, 350 kilometers (220 miles) south of Beijing, put Zhao on the front line of a clash between a policy of food self-sufficiency and industrial growth that made China the world’s second-biggest economy. Industrialization is winning, signaling prices for crops like wheat and corn will rise as China is increasingly unable to feed itself and vies for supplies on global markets.

China Housing Price Gains Slow in Beijing, Shanghai Amid Increased Curbs (Source: Bloomberg)
China’s new home price growth slowed in Beijing and Shanghai in March as the government intensified property curbs, sending the property stock index to one-month high. New home prices in the capital of Beijing rose 4.9 percent in March from a year earlier, easing from a 6.8 percent gain in February, the statistics bureau said on its website today. In Shanghai, the country’s financial hub, prices climbed 1.7 percent last month, down from 2.3 percent growth in February. Of the 70 cities monitored by the government, 67 cities posted gains, down from 68 in the first two months, the data showed.

China regions face power shortage even before summer peak
BEIJING, April 18 (Reuters) - Central China's Hubei province has joined a growing list of regions facing coal shortages, with a warning on Monday that it is very likely to start rationing power this month if coal supplies remain tight and low water stocks continue to curb hydropower generation.
China has warned that power shortages this summer could be the worst for years, with power generation and transmission systems unable to cope with rising demand. The east, north and south of China are likely to be hit the hardest.

Yen Strengthens Versus Dollar, Euro Amid Sovereign Debt Concerns (Source: Bloomberg)
The yen rose against the dollar and euro for a fourth day as investors flocked to safer assets on concern Europe’s debt crisis is worsening and after Standard & Poor’s changed its credit outlook on the U.S. to negative.

Japan’s 10-Year Yields at Two-Week Low as Asia Stocks Extend Global Slide (Source: Bloomberg)
Japan’s benchmark bond yields were at a two-week low as local shares extended a sell-off around the world after Standard & Poor’s cut the U.S.’s credit outlook to negative. Bond futures rose for a fifth day as the yen appreciated, clouding the earnings outlook for Japanese exporters. Demand for the relative safety of government securities was also bolstered on concern Greece will be unable to avoid a default.

Robots Find High Radiation as Tokyo Electric Lays Out Plan to End Crisis (Source: Bloomberg)
Robots sent into two buildings at Japan’s crippled Fukushima Dai-Ichi nuclear station detected radiation still too toxic for humans as the plant operator set out a plan to end the crisis in six to nine months.

Greek Default Drive Risks Reviving Euro-Region Contagion as Bonds Plunge (Source: Bloomberg)
European investors and politicians prodding Greece to restructure its debt may end up wishing they hadn’t. Talk of restructuring spurred by Germany risks re-igniting Europe’s debt crisis, enveloping Spain just weeks after European leaders said bailouts of Greece, Ireland and Portugal ended contagion. Under a Greek default, Europe’s financial system would strain as banks in and outside Greece and holders of Greek bonds, such as the European Central Bank and domestic pension funds, tally losses.

ECB Officials Signal More Rate Increases This Year as Economy Strengthens (Source: Bloomberg)
European Central Bank Governing Council members signaled they will keep tightening monetary policy this year to curb inflation as the economy strengthens. Investor expectations that the benchmark interest rate will be increased by another 50 basis points in 2011 are “well- founded,” Austria’s Ewald Nowotny told Bloomberg News in Washington on April 16. Luc Coene of Belgium said in an interview yesterday that monetary “conditions are too accommodative.”

Wellink Calls ECB Rate Increase a Signal to Anchor Inflation Expectations (Source: Bloomberg)
European Central Bank Governing Council Member Nout Wellink said the central bank’s April 7 interest rate increase sent to investors an “extremely important” signal aimed at preventing expectations of higher inflation. While Wellink didn’t explicitly ratify market and economist forecasts that the ECB’s policy rate will rise a further 50 basis points this year to 1.75 percent, he made it clear the central bank will keep inflation control its main policy goal.

Investment Funds Claim Banks Conspired to Manipulate London Interbank Rate (Source: Bloomberg)
Three European asset management firms accused banks including Bank of America Corp. (BAC), JPMorgan Chase & Co. (JPM), HSBC Holdings Plc (HSBA), Barclays Bank Plc, Citibank NA and Credit Suisse Group AG (CSGN) of conspiring to manipulate the London interbank offered rate. The banks sold Libor-based futures, options, swaps and derivative instruments “at artificial prices that defendants caused,” harming investors, FTC Capital GmbH of Vienna, FTC Futures Fund SICAV of Luxembourg and FTC Futures Fund PCC Ltd. of Gibraltar said in an April 15 complaint in New York federal court.

European Stocks Retreat After S&P Revises U.S. Rating Outlook to Negative (Source: Bloomberg)
European stocks dropped the most in three weeks as Standard & Poor’s Ratings Service revised its credit outlook for the U.S. to negative and speculation escalated that Greece needs to restructure its debt.

Spanish Borrowing Costs Rise at Auction of Treasury Bills as Demand Falls (Source: Bloomberg)
Spain sold 4.66 billion euros ($6.68 billion) of bills, and its borrowing costs rose as investors increased bets Greece will restructure its debt and a euro-skeptic party increased its support in Finnish elections. The Treasury said it sold 3.5 billion euros of 12-month bills at an average yield of 2.77 percent, compared with 2.128 percent at the previous auction on March 15. It also sold 1.15 billion euros of 18-month bills at 3.364 percent, compared with 2.436 percent in March.

Kenny Says Ireland Won't Default on Debt as Greece Investor Concerns Mount (Source: Bloomberg)
Irish Prime Minister Enda Kenny said the nation won’t default on its debt as he tries to rebuild confidence at a time when investors speculate Greece may struggle to pay back its borrowings.

Australian, N.Z. Dollars Weaken for Second Day on Sovereign Debt Concerns (Source: Bloomberg)
The Australian and New Zealand dollars fell for a second day versus the greenback after Standard & Poor’s cut the U.S. long-term credit outlook to negative, damping demand for higher-yielding assets.

FOREX-Euro slides broadly; debt troubles resurfacing
LONDON, April 18 (Reuters) - The euro fell broadly in thin trade on Monday, testing an area of key support against the dollar on increased talk that Greece will be forced to restructure its debt and uncertainty over a bailout for Portugal.
The euro  fell to an 11-day low around $1.4274, down over one percent on the day, though traders expected further losses to be restricted by demand from central banks looking to recycle dollar proceeds.

Euro falls on profit taking, Asian stocks flat (Source: Reuters)
The euro weakened on a broad wave of profit-taking though could rebound later in the day, while stocks in Asia ex-Japan remained flat, with investors unconvinced that China's latest moves to cool its economy would hurt the global recovery. "This probably mostly has to do with market sentiment. In the end, I think what it probably boils down to is that there are still some long positions in the euro," said Koji Fukaya, director of global foreign exchange research for Credit Suisse Securities in Tokyo, referring to the euro's drop.

20110419 0932 Soy Oil & Palm Oil Related News.

 Soy Oil chart reading : side way range bound.

Soybeans (Source: CME)
U.S. soybeans ended higher, managing to shake off the affects of a tumbling US stock market, a sharply higher US dollar and weakness in energy markets. Spillover strength from sharp gains in wheat futures helped trigger a rally in soybeans, with traders also adding some weather premium back into the market despite ideas that corn planting delays could lead to increased soybean acreage, according to a Doane Advisory Service Market note. Traders said wet weather delaying the tail end of harvest in South America added to the positive tone, with steady cash basis levels adding strength as slow demand was offset by slow producer selling. CBOT May soy was up 12 1/2c or 0.9% at $13.44 1/4 a bushel, and July soy ended up 12 1/2c or 0.9% at $13.55 3/4.

Soybean Meal/Oil (Source: CME)
Soy product futures ended higher, bouncing in unison with advances in soybeans. Spillover strength from grain futures buoyed the markets, enabling futures to withstand the impact of broader based weakness in outside, equity and energy markets, analysts said. CBOT May soyoil settled up 0.55c or 1% at 57.39 cents per pound, and May soymeal ended $2.60 or 0.8% higher at $347.80 per short ton.

Malaysian palm up as discount to soy widens
Malaysian palm oil futures inched up on hopes that buyers will switch away from more expensive rival soybean oil. Palm oil, at a discount of more than $180 to soyoil, may attract demand from price-sensitive China and India, the world's top two buyers of the vegetable oil. "The price of palm oil is relatively cheap compared to other vegetable oils," said a trader in Kuala Lumpur. "It is going to be firm unless there's a huge plunge in petroleum or soyoil."

Dry weather lifts Argentine soy harvest-gov't
BUENOS AIRES, April 15 (Reuters) - Argentine farmers made brisk progress on the 2010/11 soy harvest this week, thanks to dry weather, but yields are uneven due to excessive dryness earlier in the season, the Agriculture Ministry said on Friday.The ministry estimates this season's crop at 50 million tonnes in the world's third-biggest soybean exporter.Severe dryness late last year cut into soy output forecasts for Argentina but rains in January and February improved the outlook.

Palm oil output seen up 5-8 pct in 2011-Sampoerna Agro
JAKARTA, April 15 (Reuters) - Palm oil producer Sampoerna Agro  sees output climbing as much as 8 percent this year from 289,000 tonnes in 2010, while planting will jump by at least 10 percent, an official from the Indonesian firm said on Friday. A combination of maturing plantations and improvement works to surrounding rivers to fight flooding, have combined to help boost production, Michael Kesuma, head of investor relations told Reuters.  "This year we are targeting to grow 5-8 percent," Kesuma said. "In the first part of 2009, there was a lot of rainfall in South Sumatra... after that incident we analysed why it flooded."