Thursday, April 28, 2011

20110428 1819 FCPO EOD Daily Chart Study.

FCPO closed : 3293, changed : +16 points, volume : lower.
Bollinger band reading : side way range bound little downside biased.
MACD Histrogram : weakening, buyer leaving.
Support : 3270, 3250, 3200, 3150 level.
Resistance : 3300, 3350, 3420, 3450 level.
Comment :
FCPO closed recorded marginal gian with lower volume transacted while soy oil overnight closed little lower and currently trading higher snapping back yesterday loss. Sentiment turned little positive due external factor of higher crude oil and soy oil prices after U.S. Federal Reserve chairman statement triggered a weaker U.S. Dollar but locally higher production and stock level with flat export fundamental factor kept today's gain limited.
Daily chart formed a doji bar candle with long upper shadow positioned below Bollinger band level after market opened and traded higher followed by last hours moderate selling activities pressed price downward and closed near opening price.
Chart wise, market still likely to move side way range bound little downside biased 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.

20110428 1722 FKLI EOD Daily Chart Study.

FKLI closed : 1531 changed : +4.5 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : recovering, buyer and seller rolling over to next month.
Support : 1530, 1515, 1500, 1485 level.
Resistance : 1540, 1550, 1565, 1580 level.
Comment :
FKLI closed recorded gain with lower volume changed hand doing 4 points discount compare to cash market that also recorded gain while regional markets traded mixed still accessing the impact to the market when U.S. Federal Reserve stop QE2 program by end of Jun 2011 confirmed by its chairman Ben Benanke.
Daily chart formed a doji bar candle closed still below middle Bollinger band level after market opened higher and traded within 6 points range bound market to closed near opening price.
Chart reading remained suggesting a side way range bound market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110428 1539 Global Market & Commodities Related News.

Dollar depressed, stocks cheer easy Fed
SYDNEY, April 28 (Reuters) - The dollar slumped to three-year lows on Thursday, pushing U.S. crude Oil to a 2-1/2 year high, while Asian stocks rose as investors bet that the easy U.S. monetary policy will continue to drive money to riskier assets.
"The reason for the dollar's broad weakness is that market players think it makes sense to use the dollar to fund investment in various assets, since U.S. interest rates are likely to stay low for a while," said Daisuke Karakama, market economist at Mizuho Corporate Bank in Tokyo.

Corn rises on Bernanke comments, wheat extends losses
SINGAPORE, April 28 (Reuters) - U.S. corn futures rose 0.7 percent on Thursday, while soybeans firmed as the dollar tumbled after U.S. Federal Reserve Chief Ben Bernanke gave no sign the central bank was about to tighten monetary policy.
"We are getting planting delays and the balance sheet even for the next season looks pretty tight," said Abah Ofon, an analyst with Standard Chartered Bank in Singapore.

U.S. grain exports face hurdle if floods worsen
CHICAGO, April 27 (Reuters) - High water on the Mississippi River has slashed grain shipments by about 40 percent and could pose a threat to exports from the U.S. Gulf, the main exit for agricultural products to world markets, industry sources said Wednesday.
Grain exporters have for the moment been able to continue loading vessels at Gulf terminals, drawing from supplies they have on hand and from river elevators not yet hit by flooding, which in some areas of the Midwest was the worst in more than 70 years.

Indonesia scraps soybean oil import tax in duty overhaul
JAKARTA, April 27 (Reuters) - Indonesia has scrapped import duties on a number of raw materials and goods, including soybean oil, in a drive to boost domestic manufacturing industries, a government official said.
Soybean oil, chemical feedstocks such as ethylene for plastics, and various machines for the textile and electronics industries were among 182 products that saw import duty scrapped from 5 percent previously, said Bambang Brodjonegoro, acting head of the fiscal office.

No beneficial rain seen in key French grain areas
PARIS, April 27 (Reuters) - The key grain-growing regions in northern France will receive virtually no rainfall that could relieve drought-hit grain plants, weather forecaster Meteo France said on Wednesday.
"For the northern regions there will be no beneficial rain in the coming seven days," Meteo France forecaster Dominique Raspaud told Reuters.

Indonesian cocoa industry calls for sustainability system
JAKARTA, April 27 (Reuters) - The Indonesian Cocoa Association (Askindo) has called for government backing to regulate and promote sustainable cocoa in the world's No.3 producer, the group's chairman said on Wednesday.
A sustainable cocoa system would look at cultivation, land use practices and include traceability certificates, Zulhefi Sikumbang, chairman of Askindo, told a news conference.

China seeks Vietnam pepper, coffee growers cut trees
HANOI, April 27 (Reuters) - Chinese buyers have been in Vietnam seeking to buy black pepper at high prices, raising expectations of good gains that have prompted some coffee farmers to switch to growing pepper instead, a state-run newspaper and traders said on Wednesday.
Pepper prices in Vietnam, the world's largest producer and exporter of the spice, have more than doubled to as high as 120 million dong ($5,825) a tonne this week from 52 million dong a year ago due to production falls in many producing nations.

Copper buying resumes on LME and ShFE on Fed meeting
SINGAPORE, April 28 (Reuters) - Copper rose on London and Shanghai on Thursday, as traders resumed buying the metal ahead of a long weekend, after the Federal Reserve signalled it would not raise interest rates any time soon.
"For me the main reason for this morning's rally is that a rebound is due after copper prices had fallen so much in the past few sessions," said Great Wall Futures analyst Li Rong.  

Brazil aluminum use seen rising 13 pct in 2011
BRASILIA, April 27 (Reuters) - Brazilian consumption of aluminum products should rise around 13 percent from 2010's 1.3 million tonne total, the Brazilian Aluminum Association, ABAL, said on Wednesday.
Production of aluminum cables and wires alone should rise 58.4 percent, the association said.

Crude rises on weak dollar; U.S. gasoline inventory slides
SINGAPORE, April 28 (Reuters) - U.S. crude futures rose to their highest in 2-1/2 years on Thursday as the Federal Reserve appeared in no rush to tighten its monetary policy, weakening the dollar, and as gasoline stockpiles fell more than double the forecast.
"The main factor is that the U.S. monetary policy will remain accomodative for quite a long time," said Ben Westmore, commodities economist at the National Australia Bank. "For the oil market in particular, the decline in gasoline inventories in the U.S. is a positive for prices."

US gold hits record, silver jumps on weak dollar
SINGAPORE, April 28 (Reuters) - U.S. silver futures leapt as much as 6 percent and gold futures reached a record high on Thursday, underpinned by a weakened dollar after the U.S. Federal Reserve signalled no rush to reverse its accommodative monetary policy.
"Gold has followed the misfortunes of the dollar," said Darren Heathcote, head of trading at Investec Australia.

Oil firm tax breaks must end quickly-US Sen. Reid
WASHINGTON, April 27 (Reuters) - U.S. Senate Majority Leader Harry Reid said he would move quickly to pass legislation ending tax breaks for major U.S. oil companies, as President Barack Obama requested this week.
"We need to take away the subisidies of these five major oil companies," Reid told reporters, adding that the companies have "broken all records" for profits.

Republicans turn up heat on Obama over oil prices
WASHINGTON, April 27 (Reuters) - With Americans upset about rising gasoline prices, Republicans in the U.S. Congress aim to fix the blame on one person when they return next week from recess: President Barack Obama.
Congress wrapped up its last work session on April 15 with Democrats and Republicans in a blistering debate about budget deficits and the size of the federal government.

20110428 1111 Global Market & Commodities Related News.

GLOBAL MARKETS: Dollar extends slide on Fed stance, stocks up
SYDNEY, April 28 (Reuters) - The dollar slumped to three-year lows on Thursday, U.S. crude hit a 2-1/2 year high and Asian stocks rose after the U.S. central bank signalled it was in no rush to scale back support for the economy, keeping intact demand for riskier assets.
"Despite increasing geopolitical risks and rising credit default spreads in peripheral Europe, the trend remains your friend in a weaker greenback," he wrote in a client note.

OIL: Oil rises after U.S. Fed move, gasoline draw
NEW YORK, April 27 (Reuters) - Oil rose on Wednesday after U.S. Federal Reserve Chief Ben Bernanke gave no signs that the central bank was about to tighten monetary policy.
"The Fed is sticking to its policy, and, as a result, we have to expect recent trends in the dollar and commodities to remain intact," said John Kilduff, partner at hedge fund Again Capital in New York.

NATURAL GAS: Natural gas ends down for third day, May expires
NEW YORK, April 27 (Reuters) - U.S. natural gas futures ended slightly lower on Wednesday for a third day, lightly pressured by milder Northeast and Midwest weather this week, but unusually high nuclear plant refueling outages and cooler Midwest forecasts for next week helped limit the downside.
"The weather moderated a bit this week, so we haven't seen much heating or air conditioning demand and prices have come off a little. It could be a struggle to go much higher until we see more heat," a Midwest trader said.

EURO COAL: Weak dollar, strong oil stabilise coal prices
LONDON, April 27 (Reuters) - Prompt European delivered physical coal values were unchanged to 25 cents higher on Wednesday as rising oil, power and gas prices, alongside the dollar's continued weakness, compensated for poor demand.
"Prices haven't changed noticeably in Europe but the market is starting to improve in Asia and it may take some weeks for that to show up in prices generally," one European utility source said.

COMMODITIES: Gold hits record after Fed says low rates to stay
NEW YORK, April 27 (Reuters) - Gold rose to an all-time high near $1,530 an ounce on Wednesday and oil also went up after the Federal Reserve vowed to keep U.S. interest rates low for an extended period, which sent the dollar tumbling.
"There will be no speed about reversing policy ... (which is) good for gold," said Steel, who is HSBC's precious metals analyst and senior vice-president.

US natural gas supply estimate boosted-report
WASHINGTON, April 27 (Reuters) - The United States has more than 2,000 trillion cubic feet of potentially recoverable natural gas, a trade group said, boosting its estimate of the resource base by 4.3 percent.
The Potential Gas Committee's estimate in the biennial report on the "Technically Recoverable U.S. Natural Gas Environment" puts the size of the resource at a 46-year high.

Green claims of diesel cars disputed
LONDON, April 27 (Reuters) - Modern diesel cars may not be as clean as previously thought, say some experts as regulators try to roll out industry standards to satisfy "green" consumers.
Filter technologies have cleaned up diesel cars traditionally viewed as far more polluting than gasoline rivals, but their soot emissions are now underestimated, say some analysts.

Obama urges oil producers to increase output
WASHINGTON, April 26 (Reuters) - President Barack Obama on Tuesday urged world oil producers to lift crude output, as he sought to deflect public anger over high gasoline prices that has hurt his popularity among voters.
U.S. motor fuel prices have become a heated political issue after pushing toward $4 a gallon. Gasoline futures hit 33-month highs on Tuesday.

20110428 0948 Global Economic Related News.

Vietnam: Trade deficit held in April at close to the same level as the previous month. The deficit in April totaled USD1.4b compared with a revised USD1.41b in March, based on preliminary figures released by the General Statistics Office in Hanoi. (Source: Bloomberg)

South Korea: Growth accelerates, adding price pressure
South Korea’s economic growth accelerated in the first quarter, bolstering the case for another interest-rate increase and driving the Won to the strongest close since 2008. Gross domestic product rose 1.4% from the previous quarter, when it advanced 0.5%, the Bank of Korea said. The median estimate of 10 economists in a survey was for a 1.5% gain. The economy grew 4.2% from a year earlier. (Bloomberg)

Japan: March retail sales tumbled the most in 13 years as the nation's record earthquake shut stores and discouraged households from spending money. Sales slumped 8.5% YoY in March, the biggest decline since March 1998. (Source: Bloomberg)

Japan: Housing starts May post first drop in 10 months on quake
Japan’s housing starts may post the first decline in 10 months as the nation’s strongest earthquake on 11 Mar sapped demand, halting the strongest recovery in the real estate market in almost 15 years. Construction companies broke ground on 1.1% fewer homes in March from a year earlier, according to the median estimate of 23 economists in a survey. (Bloomberg)

Japan: Rating threat may force higher taxes to fund rebuilding
The threat of a cut to Japan’s credit rating adds pressure on Prime Minister Naoto Kan to raise taxes as he wrestles with financing earthquake rebuilding without adding to the world’s biggest public debt burden. Standard & Poor’s lowered its outlook yesterday to “negative” on Japan’s AA- local-currency rating, estimating that costs stemming from the earthquake, tsunami and nuclear crisis may boost budget deficits by 3.7% of gross domestic product through 2013. (Bloomberg)

Australia: Consumer prices gained the most in five years last quarter, driving the nation's currency to a record on bets the central bank will resume raising interest rates. The consumer price index rose 1.6% QoQ, the biggest jump since 2006. The increase was led by food prices driven up by a cyclone and floods in Queensland state, and costlier fuel bills. (Source: Bloomberg)    

France: Consumer confidence stagnated in April as rising energy costs sapped spending power and joblessness remained stuck near a seven-year high. An index of sentiment was unchanged from March at 83. (Source: Bloomberg)

E.U: Industrial orders gained for a fifth month in February, led by demand for capital goods. Orders in the euro area rose 0.9% MoM from January, when they increased a revised 1.2% MoM, the European Union's statistics office in Luxembourg said. Orders advanced 21% YoY. (Source: Bloomberg)

U.K: Economy rebounded in 1Q11 by enough to erase the contraction of the previous three months on the strongest surge in service industry growth for four years. GDP rose 0.5% QoQ from the final quarter of 2010, when it fell by the same amount, the Office for National Statistics said. (Source: Bloomberg)

US: Durable goods orders gain points to better spending
Demand for US durable goods rose in March for a third consecutive month, indicating business investment will pick up. Bookings for equipment meant to last at least three years climbed 2.5% after a 0.7% gain the prior month that reversed a previously reported drop, the Commerce Department said in Washington. The increase reflected growing demand for machinery, computers and automobiles. (Bloomberg)

US: Bernanke says fed to maintain stimulus, further easing unlikely
Federal Reserve Chairman Ben S. Bernanke signaled the Fed will maintain its record monetary stimulus after ending large-scale bond purchases in June, while the need to contain inflation means further easing is unlikely. ”If inflation persists or if inflation expectations begin to move, then there’s no substitute for action,” Bernanke said. “We would have to respond.” (Bloomberg)

20110428 0947 Malaysia Corporate Related News.

KLCI chart reading : side way range bound little downside biased.

UMW mulls energy venture
UMW Holdings, which has interests in the auto and oil and gas businesses, is mulling the possibility of entering the energy business as part of its long-term plan to diversify its earnings base. President and group chief executive Datuk Syed Hisham Syed Wazir said the group has received numerous proposals on how it can do this. "But we haven't made any decisions yet and are still evaluating all the proposals. We will only make a decision by year-end," Syed Hisham said. He declined to be specific although stressed that UMW's oil business, in which it makes drilling pipes and operates oil rigs, is mainly about the supply of products and services rather than producing energy. (BT)

Tanjung Offshore gets RM15m contract from Murphy Sarawak
Tanjung Offshore’s unit has received a RM15m contract to provide valve repair and maintenance services for Murphy Sarawak Oil. It said on 27 April its unit Tanjung Maintenance Services SB’s contract was effective from Mar 2011 to Mar 2014 with option to renew for another two years. “In the event the contract is renewed for another two years, the contract costs will be determined at the then costs/prices,” it said. Tanjung Offshore said the contract was expected to contribute positively to its earnings and net assets for the financial years ending 31 Dec 2011 and beyond.(Financial Daily)

Masterskill ties up with University of Newcastle
Masterskill Education Group announced on Bursa Malaysia yesterday that the company had entered into an Undergraduate Articulation Programme Agreement with Australia’s University of Newcastle. The private higherlearning provider, through its wholly owned subsidiary Masterskill (M) SB together with the University of Newcastle, could establish an agreement by which Masterskill students who have finished Part 1 of the Programme, are given an 80 units (1 year) of advanced standing by Newcastle into the Bachelor of Business and Bachelor of Commerce programmes, Part 2 at Newcastle. The combination of undergraduate studies at Masterskill and Newcastle would be known as the Joint Programme of Undergraduate Studies, according to the announcement. (Financial Daily)

TH Plantations to acquire land in Indonesia
TH Plantations plans to expand its landbank to 50,000ha by 2012, from the current 39,113ha. It is eyeing areas in Kalimantan and Sumatera, Indonesia, where land prices are significantly lower than Sabah and Sarawak. Datuk Zainal Azwar Zainal Aminuddin, executive director and CEO, explained that a hectare of land in Kalimantan or Sumatera may cost USD450 to USD650 (RM1341 to RM1937). By comparison, the price range in Sabah is RM4500 to RM6000 per ha and RM4000 to RM5000 per ha in Sarawak.(Financial Daily)

Unisem posts lower Q1 profit on currency fluctuations
Unisem (M) Bhd has posted a lower group net profit of RM5.4m for the first quarter ended 31 Mar 2011, compared with RM41.3m in the same period last year. Group revenue stood at RM292m, a 11.3% decline from the same quarter a year earlier. The decline in revenue was mainly due to a weaker US dollar against the ringgit, compared to the rates that prevailed in the previous corresponding quarter, the company said in a filing with Bursa Malaysia. The lower net profit was due mainly to the lower revenue achieved as well as losses at PT Unisem and Unisem Europe. (StarBiz)

RHBCap: Chinese banks interested in ADCB's stake. Amid speculation that China Construction Bank is seeking BNM approval to acquire a stake in EON Capital, Chinese were also among those invited to tender for the block of shares in RHBCap that is to be put on the market by Abu Dhabi Commercial Bank (ADCB) . (Source: The Edge Financial Daily)

KFC Holdings: To invest RM45m in 25 new outlets this year. KFCH MD Jamaludin Md Ali said this after yesterdays AGM adding that 10 of the outlets will be 'drive-thrus'. On its overseas expansion, nine outlets have been planned for India. Overseas top line contribution from Brunei and Singapore will come up to 15%. (Source: Business Times)

TH Plantations: Higher FFB output expected this year. The company is targeting 504,901mt of palm bunches from 463,949mt in 2010. The company aims to expand its land bank to 50,000 ha from 39,113 ha by 2010 and is looking at Sabah, Sarawak, Sumatra and Kalimantan. (Source: TheStar)

Rubber: Malaysian production may rise 6.5%. Higher prices may encourage farmers to boost production tapping and output may increase to 1m metric tonnes this year from 939,000 in 2010. Thai production may decline if rains persist across the countrys main southern growing region (Source: The Malaysian Reserve)

Timber: Sarawak's log production falls. Total production in 1Q 2011 was down 28% YoY due to a combination of bad weather and flooding and impoundment of the Rejang River basin. Log prices are however expected to be higher this year due to tighter supply bigger demand. (Source: Business Times)    

20110428 0942 Renewables Energy Related News.

HOUSTON, April 26 (Reuters) - Leaving its ambitious nuclear development plan behind, NRG Energy Inc  will focus on expanding its solar business, chief executive David Crane said on Tuesday.
NRG currently has 533 megawatts of solar capacity under construction and another 1,000 MW in advanced development, a fraction of its total portfolio of nearly 25,000 MW of natural gas, coal, wind and nuclear generation in the United States.

VANCOUVER, April 26 (Reuters) - Solar energy company Etrion Corp  is looking to diversify from its Italian base this year across the Atlantic, its chief executive said on Tuesday, at a time when Europe's third biggest solar market is slashing its generous incentives for sun-generated power.
Despite the cutbacks in rates, the small but fast-growing company will keep expanding in Italy, its only market so far. It expects to be able to develop solar projects there profitably as solar panel prices and other costs drop.

CALGARY, Alberta, April 26 (Reuters) - TransAlta Corp's   first-quarter profit surged 240 percent on strong power markets and hedging gains, although it cautioned some new projects could be hampered by supply problems stemming from the disaster in Japan.
TransAlta, which runs coal and gas-fired power plants and renewable energy facilities in Canada and the United States, said on Tuesday it is formulating alternative plans for some power plant projects that were to have Japanese parts, such as turbines.

PARIS, April 26 (Reuters) - France will miss its 2020 renewable energy target by over a third unless it cuts red tape and raises support to a sector that lags its European neighbours, a renewable energy sector group said on Tuesday.
France set in 2007 an ambitious target to reach 23 percent of green energy in its mix by 2020, over the 20-percent target fixed by the European Union.

LOS ANGELES, April 26 (Reuters) - Thin-film solar company Miasole reached a deal with Intel Corp  under which the chipmaker will provide training and expertise to help the solar start-up ramp up manufacturing and lower costs.
The financial terms of the deal were not disclosed.

MADRID, April 26 (Reuters) - Spanish irrigation reserves rose after heavy rain last week, helping grain crops, while hydro-power reserves eased, according to official data released on Tuesday in the major grain- and gas-importing country.
Dry weather in the first half of April caused concern that the winter wheat and barley harvest might suffer damage.

April 25 (Reuters) - Solar equipment supplier GT Solar International Inc  said it received an order worth $93.9 million for polysilicon production equipment from Taiwan's Powertec Energy Corp.
The company, which had cash reserves of $320.36 million as of Jan 1, said the orders would be included in its backlog for the first-quarter ending July 2.

BANGALORE, April 21 (Reuters) - A NextEra Energy Inc  unit will sell 100.8 megawatts (MW) of wind energy to Google Inc's  energy subsidiary, the companies' second such agreement that would help the Internet search giant power its data centers using renewable sources of energy.
As part of plans to reduce its carbon footprint, Google has been buying renewable electricity to power its data centers. Its strategy is to select a clean power project that is on the same grid as one of its centers.

ADDIS ABABA, April 21 (Reuters) - Ethiopia will deny Egypt a chance to examine a new mega dam it is building on the Nile unless Cairo inks a new deal relinquishing its veto powers over allocation of the river's waters, an official said on Thursday.
Egypt has been locked for more than a decade in a dispute with other countries through which the river passes, refusing changes to colonial-era treaties contested by Ethiopia and other upstream nations.

SOFIA, April 21 (Reuters) - Bulgaria approved a new law on renewable energy on Thursday that aims to cool a surge in solar and wind power projects that threatens to overwhelm its ageing power grid and boost electricity prices.
The law changes the government's obligatory purchase of electricity produced from renewable energy generators at high, fixed prices, which has led to a jump in projects totalling over 6,000 megawatts -- well above the country's grid capacity.

LONDON, April 21 (Reuters) - Luvata expects higher sales of copper products used in renewable energy in coming months and years as governments around the world look away from nuclear power, a company executive told Reuters.
Japan's earthquake and tsunami, which has crippled some of the country's nuclear power plants, has thrown the spotlight on renewable energy as an alternative, said Jussi Helavirta, head of Luvata's special products division said this week.

April 21 (Reuters) - Canadian Solar Inc  said it will supply 97 megawatts (MW) of solar modules to Germany's GP Joule in its second such deal with European customers in as many days.
Solar sector shares fell in the last year on worries that falling subsidies in top markets such as Germany and Italy will lower demand this year and solar panels prices will dive faster than producers expected. 

20110428 0941 Biofuels Related News.

SAO PAULO, April 26 (Reuters) - Brazil's center-south should crush 585 million tonnes of sugar cane in 2011/12, up from 574 million seen in February, U.S. crop forecaster Lanworth Inc said on Tuesday, adding that the revision was due to an increase in soil moisture.
The numbers are at the center of forecast ranges that stretch from 33 million additional tonnes to 33 million fewer tonnes of cane.

WASHINGTON, April 26 (Reuters) - The U.S. Environmental Protection Agency does not plan to change its biofuel mandate despite corn prices that have risen to record levels, said Lisa Jackson, its administrator, on Tuesday.
About 40 percent of the U.S. corn crop is used to make ethanol, and the biofuel is often targeted by critics who say fuel use is driving up food and livestock feed costs.

SAO PAULO, April 26 (Reuters) - U.S. agricultural company Archer Daniels Midland  said Tuesday it agreed to buy the remaining 51 percent stake in Brazil's Limeira do Oeste ethanol mill, making it the plant's sole owner.
The value of the purchase will be determined by an arbitration proceeding being carried out between ADM and a local group called Canaa Participacoes that owns the 51 percent stake, an ADM spokeswoman said.

MILAN, April 22 (Reuters) - Novaol, a leading Italian biodiesel maker, has started up a new 198,000 tonne plant in northern Italy, betting on a pick-up in biofuel production in the country, the company said on Friday.
The new plant in the Ravenna province near the Adriatic Sea will also produce 30,000 tonnes of glycerin for pharmaceutical use, the company controlled by French oilseed giant Sofiproteol said in a statement.

KANSAS CITY, April 20 (Reuters) - U.S. ethanol production fell for the fourth consecutive week, the government said on Wednesday, dropping to the lowest in nearly seven months as high corn prices squeezed margins.
The slowdown comes as market players keep a close eye on competing factors that include strong export demand, signs of slipping domestic demand and tightening supplies of key ingredient corn.

LONDON/SAO PAULO, April 20 (Reuters) - Brazilian cane mills are churning out ethanol to try to keep up with soaring demand, but dealers see ample sugar supplies in the pipeline despite a below-consensus cane forecast from analyst Canaplan.
With sugar prices a third below their three-decade highs, sugar price risk is to the downside due to plentiful supply prospects from Brazil and Thailand, auguring well for physical offtake, dealers said.

20110428 0940 Global Market Related News.

DJIA chart reading : upside biased with possible pullback correction.

Hang Seng chart reading : correction range bound little upside biased.

Asian Stocks Rise as Federal Reserve Renews Pledge on Low Interest Rates (Source: Bloomberg)
Asian stocks rose, sending the regional benchmark index to an almost two-month high, after the U.S. Federal Reserve renewed its pledge to stimulate growth in the world’s biggest economy with low interest rates. The MSCI Asia Pacific Index gained 0.8 percent to 138.97 as of 9:08 a.m. in Tokyo, heading for its highest close since March 4.

Fed Says Pace of U.S. Recovery Is ‘Moderate,’ Bond Buying Will End in June (Source: Bloomberg)
Federal Reserve policy makers said the economy is recovering at a “moderate pace” and a pickup in inflation is likely to be temporary, as they agreed to finish $600 billion of bond purchases on schedule in June.

Bernanke Says Fed to Keep Stimulus, Further Easing Unlikely (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke signaled the Fed will maintain its record monetary stimulus after ending large-scale bond purchases in June, while the need to contain inflation means further easing is unlikely.

UPS Gain in Overnight Deliveries Shows U.S. Economic Confidence (Source: Bloomberg)
Gains in overnight shipments at United Parcel Service Inc. (UPS) and FedEx Corp. (FDX), the two largest package-delivery companies, show consumers and businesses are willing to pay for faster deliveries as the economy expands. Average daily volume for UPS’s next-day air packages “grew at a mid-single digit rate,” overshadowing a drop in ground delivery for the quarter ended March 31 from a year earlier, data from the Atlanta-based company showed yesterday. Such growth in premium overnight air packages is a sign of economic confidence, according to Chief Financial Officer Kurt Kuehn.

U.S. Durable-Goods Orders Rise for Third Month as Equipment Is Replenished (Source: Bloomberg)
Demand for U.S. durable goods rose in March for a third consecutive month, indicating business investment will pick up. Bookings for equipment meant to last at least three years climbed 2.5 percent after a 0.7 percent gain the prior month that reversed a previously reported drop, the Commerce Department said today in Washington. The increase reflected growing demand for machinery, computers and automobiles.

U.S. Stocks Rally as Federal Reserve Signals Low Interest Rates; GE Gains (Source: Bloomberg)
U.S. stocks rose, giving the Standard & Poor’s 500 Index the fifth gain in six days, as the Federal Reserve renewed its pledge to stimulate growth with low rates and said a pickup in inflation is likely temporary. General Electric Co. (GE) added 2.7 percent after saying it wants to boost its dividend. Moody’s Corp. (MCO), whose founder John Moody created credit ratings more than a century ago, climbed 6.7 percent as profit beat estimates by 25 percent. Inc. (AMZN) gained 7.9 percent as the world’s largest online retailer reported sales that topped predictions and Deutsche Bank AG increased its share-price estimate to $215.

U.S. consumers perk up but home prices fall again
NEW YORK, April 26 (Reuters) - U.S. consumers perked up a bit in April as they lowered their forecasts for inflation and worried less about the jobs market, but yet another fall in house prices underscored the challenges facing the recovery.
The overall confidence level, as measured by the Conference Board, an industry group, was still historically low.

Dollar Hits 16-Month Low Versus Euro After Bernanke Comment; Kiwi Declines (Source: Bloomberg)
The dollar fell to a 16-month low against the euro after the Federal Reserve renewed its pledge to keep interest rates near zero to stimulate economic growth.

S&P cuts Japan sovereign rating outlook on quake costs
TOKYO, April 27 (Reuters) - Standard and Poor's on Wednesday threatened to cut Japan's sovereign rating, warning that the huge cost from last month's devastating earthquake will hurt the country's already weak public finances without tax hikes.
The rating agency said costs related to the March 11 earthquake, tsunami, and nuclear power plant disaster will increase Japan's fiscal deficit above prior estimates by a cumulative 3.7 percent of GDP through 2013.

Japan’s Industrial Output Plunges 15.3% as Record Quake Disrupts Supplies (Source: Bloomberg)
Japan’s industrial production plunged after a record earthquake and a tsunami led to shuttered factories, disruptions in supply chains, and a nuclear crisis.

Japan Housing Starts May Post First Decline in 10 Months After Earthquake (Source: Bloomberg)
Japan’s housing starts may post the first decline in 10 months as the nation’s strongest earthquake on March 11 sapped demand, halting the strongest recovery in the real estate market in almost 15 years. Construction companies broke ground on 1.1 percent fewer homes in March from a year earlier, according to the median estimate of 23 economists in a Bloomberg News survey. The Ministry of Land, Infrastructure, Transport and Tourism is scheduled to release the data at 2 p.m. Tokyo time today.

Japan Rating Threat May Force Higher Taxes to Fund Rebuilding (Source: Bloomberg)
The threat of a cut to Japan’s credit rating adds pressure on Prime Minister Naoto Kan to raise taxes as he wrestles with financing earthquake rebuilding without adding to the world’s biggest public debt burden. Standard & Poor’s lowered its outlook yesterday to “negative” on Japan’s AA- local-currency rating, estimating that costs stemming from the earthquake, tsunami and nuclear crisis may boost budget deficits by 3.7 percent of gross domestic product through 2013.

Japanese Stocks Rise on Fed’s Low-Rate Pledge; Advantest Gains (Source: Bloomberg)
Japanese stocks rose for a second day after the U.S. Federal Reserve renewed its pledge to stimulate growth in the world’s biggest economy with low interest rates, and the yen weakened. Advantest Corp., the world’s biggest maker of tools used to test memory chips, climbed 2.6 percent. Kyocera Corp., an electronics maker that gets 18 percent of its revenue in Europe, increased 1.9 percent, after the yen weakened. Komatsu Ltd., the world’s second-largest maker of construction equipment, advanced 2.2 percent after posting a more than threefold jump in fourth- quarter profit.

Indonesia Raises $2.5 Billion From Its First Dollar Bond Sale of This Year (Source: Bloomberg)
Indonesia sold $2.5 billion in dollar-denominated bonds after attracting bids for almost three times that amount, tapping appetite for assets of developing economies poised to grow faster than advanced nations. Southeast Asia’s largest economy sold the 10-year bonds with a 4.875 percent coupon to yield 5.1 percent yesterday. Bids totaled $6.9 billion, or 2.9 times the notes on offer, said a person familiar with the sale, who asked not to be identified because he wasn’t authorized to speak publicly on the matter. The Philippines sold $1.5 billion of 15-year dollar debt in March, attracting $6.5 billion in bids.

German Consumer Confidence to Decline in May Amid Higher Prices, GfK Says (Source: Bloomberg)
German consumer confidence will decline for a second month in May as households grapple with higher food and energy prices, GfK AG said. The Nuremburg-based market research company today forecast that its consumer sentiment index, based on a survey of about 2,000 people, will fall to 5.7 next month from 5.9 in April. Economists predicted a decline to 5.8, according to the median of 26 estimates in a Bloomberg News survey.

U.K. Economy Grew 0.5% in First Quarter as Services Surged Most Since 2006 (Source: Bloomberg)
Britain’s economy rebounded in the first quarter by enough to erase the contraction of the previous three months on the strongest surge in service-industry growth for four years.

Spain Crisis Exemption Poses Renewed Test for Salgado as Local Votes Loom (Source: Bloomberg)
Spain’s resistance to Europe’s debt crisis may be tested next month as local governments taking power after regional elections threaten to repeat Catalonia’s experience when revealing the state of their finances. Finance Minister Elena Salgado, who is spearheading the nation’s efforts to stave off turmoil, agreed to seven deficit- cutting plans with local finance chiefs late yesterday and left six pending until after May 22 elections for 13 regions and 8,000 municipalities. Catalonia, Spain’s largest region, revealed a budget shortfall 60 percent wider than previously acknowledged after its government won an election in November.

Spain Calls Draghi ‘Excellent’ Choice for ECB President, Isolating Merkel (Source: Bloomberg)
Spanish Finance Minister Elena Salgado called Mario Draghi an “excellent” choice as the next European Central Bank president, leaving Germany as the only one of the four biggest euro countries that has yet to endorse the Bank of Italy governor. “Spain’s position is that we think he is an excellent candidate,” Salgado told reporters late yesterday in Madrid hours after her ministry had declined to comment.

Euro zone Feb new orders rise, Jan revised upwards
BRUSSELS, April 27 (Reuters) - Euro zone industrial new orders rose slightly less than expected in February, but January orders were revised upwards, data showed on Wednesday, pointing to stronger industrial production later this year.
The European Union's statistics office Eurostat said industrial new orders in the 17 countries using the euro rose 0.9 percent month-on-month for a 21.3 percent year-on-year gain.

New Zealand Leaves Key Rate at 2.5% on ‘Uncertain’ Outlook; Currency Drops (Source: Bloomberg)
New Zealand’s central bank kept its benchmark interest rate at a record low as the nation recovers from the most devastating earthquake in 80 years, sending the country’s currency lower. “The outlook for the New Zealand economy remains very uncertain,” Governor Alan Bollard said in a statement today in Wellington after leaving the official cash rate at 2.5 percent. “Given the outlook for core inflation and continued economic disruption from the earthquakes, the current level of the cash rate is likely to remain appropriate for some time.”

Mumbai’s Home Sales Drop to Two-Year Low as Unsold Units Climb to a Record (Source: Bloomberg)
Mumbai home sales dropped to a two- year low in the first quarter as record prices and interest rates at the highest since 2008 crimped demand, increasing the number of unsold units to a record, according to Liases Foras Real Estate Rating & Research Pvt. Sales in Mumbai, India’s most expensive property market, fell to 9.09 million square feet in the three months ended March, 14 percent lower than the December quarter and the lowest since the first quarter of 2009, Mumbai-based Pankaj Kapoor, founder of Liases Foras said. Unsold stock climbed to 105 million square feet, while the weighted average price of homes rose to a record 9,234 rupees ($208) a square foot.

FOREX-Dollar sags, seen staying pressured on Fed stance
LONDON, April 27 (Reuters) - The dollar fell against most currencies on Wednesday and looked set to stay under pressure on expectations the U.S. Federal Reserve will reaffirm its ultra-loose monetary policy for the coming months.
Sterling neared 17-month highs against the greenback after an in-line reading of first quarter UK growth, with investors who had sold the pound on anticipation of a softer figure being forced to buy it back.

Dollar at 3-year low before Fed, stocks steady (Source: Reuters)
The U.S. dollar plumbed a three-year low against other major currencies on Wednesday before a Federal Reserve decision which is expected to reaffirm ultra-easy policy, while European shares inched lower. The dollar skidded to 73.493 against a currency basket, driven by interest rate differentials. The index is now down close to 10 percent from its peak in January and many traders expect it eventually to revisit an all-time low of 70.698 hit in 2008.  

20110428 0937 Global Commodities Related News.

Corn (Source: CME)
US corn futures end lower as traders reduced risk ahead of Fed Chairman Bernanke's press conference. "If Bernanke says anything remotely bullish for the dollar, it could lead to a short-covering rally that would put pressure on pretty much everything else," such as the grains, warned MF Global. Predictions for improved weather added pressure to prices after cool, wet conditions delayed early planting. "The latest models are saying it's going to get drier and warmer," says Sid Love, analyst for Kropf & Love Consulting. CBOT July corn slides 13 1/2c to $7.59 1/4 a bushel.

Wheat (Source: CME)
US wheat futures finish sharply lower as traders reduced risk and took profits after recent gains. Traders worried Fed chairman's comments would sway the dollar or other markets that influence commodities. Prices felt additional pressure from beneficial rains in dry parts of the US Plains and Europe. "Obviously we ran prices up too far too fast on the idea that the crop is gone," says Sid Love, analyst for Kropf & Love Consulting. CBOT July wheat sinks 35c to $8.12 a bushel; KCBT July tumbles 37 3/4c to $9.23; MGE July sheds 27 1/4c to $9.54 1/4.

Rice (Source: CME)
US rice futures close weaker on spillover pressure from sinking wheat and corn prices. Traders were reducing risk in the grains and taking profits as concerns eased about poor weather. It seems worries about rains delaying US rice planting have been dialed into the market, an analyst says. CBOT July rice drops 16c to $14.50 1/2 per hundredweight.

Argentina Pres Sends Congress Bill Limiting Foreign Land Ownership (Source: CME)
Argentine President Cristina Fernandez has sent a bill to Congress placing strict limits on the amount of farm and rural land that foreigners can purchase, throwing cold water on a wave of foreign buying of farmland in the agricultural powerhouse. Under the proposed bill, foreigners will be limited to buying 1,000 hectares (2,500 acres) each and a nationwide survey will be conducted to ensure that no more than 20% of the country's total rural area is in the hands of foreigners, Fernandez announced. Existing landholdings held by foreigners will not be affected, Fernandez said.

Russian Domestic Grain Prices Fall This Week On State Intervention Fund (Source: CME)
Russian domestic grain prices continue to fall this week as the government continues to sell grain from the State Intervention Fund amid no fresh news on the Russian grains export ban, the SovEcon agricultural markets analysis body said. The Russian government imposed a ban on the export of grain Aug. 15, to last until June 30 2011 because of severe drought. The drought has resulted in Russia's grain harvest this year falling to 60 million metric tons, according to the agriculture ministry's estimates, from 97.1 million tons last year. SovEcon said domestic prices for fourth-grade milling wheat retreated 1% to 5,200 rubles a metric ton, and third-grade milling wheat declined 2% to RUB5,500/ton. Average corn price this week also fell 2% to RUB7,700 a ton. "Now, Russian domestic prices are lower than U.S. and EU corn price levels. But in January, Russian prices were the same as international corn prices," said Andrey Sizov Jr. Managing Director of SovEcon.
Sizov added that Russian grain price levels are falling because the government continues to sell grain from the State Intervention Fund and has not advised further on the grain export ban. The State Intervention Fund refers to the quantities of grain purchased in previous years by the government to support price levels and to curb inflation when necessary. "At the start of the year, we estimate the government had 9.6 million tons of grain in the state intervention fund. Now, we believe this has fallen to seven million tons as the government continues to sell from this fund," said Sizov. Russia's domestic grain prices have also 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 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 and 20,000-30,000 tons of barley imports.

Midwest Storms Delay Crucial Planting Season (Source: CME)
Unusually rainy and cool weather is delaying many Midwest farmers from launching the planting boon that food executives are banking on to replenish tight grain supplies. According to the U.S. Agriculture Department, farmers in the 18 biggest corn-producing states had planted just 9% of their corn acres by Sunday, compared with the five-year average of 23% of their corn acres by this time of the year. In Iowa, the biggest corn producing state, farmers had managed to plant just 3% of their intended corn acres compared with 61% at this time in the spring of 2010, when the planting season started unusually early. The planting season is also running behind average in Minnesota, the Dakotas and Montana. Only 6% of the spring wheat grown on the Northern Plains and Pacific Northwest had been planted by Sunday compared with 39% last year. Likewise, only 10% of U.S. sugar beet acreage had been planted by Sunday compared with 80% by that time last year.
Agricultural analysts said Midwest farmers still have weeks to get their seeds in the ground in order to reap bumper harvests. Indeed, U.S. corn farmers were even further behind in the spring of 2008, yet managed to produce what was then their second-biggest corn harvest ever. Dan Basse, president of AgResource Co., a Chicago commodity forecasting concern, said Tuesday that Midwest planting delays wouldn't prompt him to cut his harvest forecasts unless they continue for a few more weeks. "Corn won't lose its yield potential until it's planted after May 15," said Mr. Basse, who continues to expect U.S. corn farmers to produce a record 13.8 billion bushels this year. Food and textile executives are paying close attention to weather across the Farm Belt this planting season because strong demand and tight supplies of key crops are pushing their ingredient costs to high levels. Prices of Midwest corn, Southern Plains wheat and cotton have doubled from a year ago; soybean prices are up 40%.
Food makers and meatpackers are counting on a planting boon to replenish supplies and push down crop prices. Meteorologists say the stormy Midwest spring is being fueled by the same La Nina weather phenomenon that is behind the drought gripping Southern Plains states such as Texas and Oklahoma, where the wheat crop planted last fall is shriveling from thirst even as Minnesota fields are too muddy and cold to plant with seed. According to the USDA, 72% of the Texas wheat crop is in very poor to poor condition. La Nina is a cooling of the surface of the eastern Pacific Ocean along the equator. The cooler-than-normal water temperature is thought to trigger dry weather in the southern U.S. by reducing the amount of moisture that is picked up by the subtropical jet stream, a high-altitude air flow that serves as a highway for storms.

U.S. wheat extends losses, corn dips on Fed uncertainty
U.S. wheat futures lost more ground on Wednesday, dropping almost 1 percent, while corn fell half a percent, ending a three-day rising streak on uncertainty ahead of a Federal Reserve news conference later in the day. "There is uncertainty before the Fed press conference which is likely to affect the entire commodities complex," said Ker Chung Yang, an analyst at Phillip Futures in Singapore.

Kazakhstan wheat output seen 14.5 mln T - attache
WASHINGTON, April 26 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Kazakhstan: "Assuming normal weather, FAS Astana forecasts that Kazakhstan's wheat crop in MY 2011 will rebound to 14.5 million tonnes from the drought affected 9.7 million tonnes in MY 2010. Wheat exports are forecast at 7 million tonnes, an increase by 2 million tonnes from MY 2010, and most wheat and flour
will be exported to Asian countries, while exports to Russia will not exceed 1 million tonnes.

Vietnam rice export prices up as paddy prices rise-attache
WASHINGTON, April 26 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Vietnam: "Export rice prices went up last week due to the pressure of higher local paddy prices. The harvest of the spring crop in the Mekong River Delta is coming to an end; thus farmers are trying to hold their newly harvested paddy, anticipating a higher selling price later in the year."

Morocco ends soft wheat imports as local crop surges
MEKNES, Morocco, April 26 (Reuters) - The Moroccan government has wrapped up its soft wheat imports a month ahead of schedule and will rely on a local cereals harvest it expects to rise by 18 percent, its top farming official said on Tuesday.
Speaking on the sidelines of a farming conference in the central city of Meknes, Agriculture Minister Aziz Akhennouch also told Reuters the agriculture-reliant economy "could add a few points of extra growth", after the announcement of a cereals harvest forecast of 8.8 million tonnes this year.

Weekend rain not enough to help parched EU wheat
HAMBURG, April 26 (Reuters) - Easter rain in parts of west Europe was not enough to significantly help parched wheat crops in key producers France and Germany, and fears of crop damage are growing, analysts and traders said on Tuesday.
Weather forecasts for both countries are for only scattered rain this week. Dryness could start to cut wheat yields in the 2011 harvest in France and Germany, analysts said. Concern is also growing in Britain, but the outlook in Italy and Spain is better.

Russian wheat exports loom, may pressure prices
SINGAPORE, April 26 (Reuters) - Russia is likely to resume wheat exports later this year which will add to the global surplus of the grain, putting pressure on international prices, a U.S.-based agriculture consultant said on Tuesday.
Russia, typically the world's third largest wheat exporter, banned overseas grain sales last year after a devastating drought ravaged the Black Sea region, pushing wheat prices  higher on the benchmark Chicago Board of Trade.

U.S. corn planting seen 13 pct done, behind schedule
CHICAGO, April 25 (Reuters) - Damp soil and cold weather around the U.S. Midwest have likely put farmers well behind their ideal corn planting schedule and left them hoping for a quick warm-up as the deadline for optimal seeding approaches.
The U.S. Agriculture Department's weekly crop progress report on Monday afternoon is expected to show that farmers had planted 13 percent of their anticipated corn acreage as of April 24, based on an average of estimates given by nine analysts.

Arabica coffee edges up early as uptrend resumes
Arabica coffee futures on ICE were higher in early trade on Wednesday with the market heading back up towards last week's 34-year peak while sugar fell as the market eyed Friday's expiry of May raws.  Arabica coffee futures on ICE edged up with the market back on an upward track, supported both by constructive technicals and tight supplies.

Italians keep drinking coffee despite price rises
MILAN, April 26 (Reuters) - Italians keep drinking coffee, despite rising prices, and this year they are consuming as much or even slightly more than in 2010 although they have more at home to save money, a senior industry official said.
Italy is one of Europe's major coffee markets, using about 5.7-5.8 kg per head and with total consumption of 5.8 million 60-kg coffee bags in 2009, according to data from the International Coffee Organisation (ICO).

Indonesia 2011 cocoa exports seen down as much as 12.5 pct
JAKARTA, April 27 (Reuters) - Cocoa exports from Indonesia, the world's third-largest cocoa producer, may fall by as much as 12.5 percent this year, the Indonesian Cocoa Association said on Wednesday.
Cocoa exports from Southeast Asia's largest economy will be between 280,000 tonnes and 300,000 tonnes this year, down from 320,000 tonnes in 2010, Zulhefi Sikumbang, chairman of an association known as Askindo, said at a news conference.

Russia 11/12 sugar beet output seen up 40 pct-attache
WASHINGTON, April 26 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Russia: "Russian sugar beet production is expected to rebound strongly in 2011 and ffectively displace a significant portion of raw sugar imports in 2011/12. GOR subsidies and normal weather conditions should allow industry to ultimately increase harvested area and production to 1.2 million hectares (24 percent over 2010) and 30 million tonnes (40 percent over 2010), respectively.

Ivory Coast cocoa trade, banking poised to restart
ABIDJAN, April 26 (Reuters) - Ivory Coast's cocoa and banking sectors are set to resume operations within days, officials said on Tuesday, signalling big steps toward restoring normality in the conflict-torn West African state.
A violent post-election power struggle paralyzed the economy of the world's top cocoa grower for months, leaving Ivorians to scramble for daily survival in the midst of heavy combat and sending shockwaves through global cocoa markets.

Brazil cocoa arrivals up 12 pct from year ago
BRASILIA, April 26 (Reuters) - Deliveries of cocoa to warehouses from the main growing regions in Brazil were up 12 percent from a year ago, with just one week left before the 2010/11 season ends, Bahia Commercial Association data showed on Tuesday.
Cocoa deliveries have slowed to a trickle in the lull between the end of the main crop and the start of the forthcoming mid crop which should begin harvesting in May or June depending on the region.

Ivorian cocoa mid-crop boosted by fine weather
ABIDJAN, April 26 (Reuters) - Patchy rains and sun in Ivory Coast's cocoa growing regions last week was good news for the development of the April-to-September mid-crop, farmers and analysts said on Tuesday.
Traders are eyeing the mid-crop in the world's top cocoa producer, with several exporters forecasting between 250,000 and 300,000 tonnes reaching port -- where warehouses are already brimming with tonnage delayed by a violent political struggle.

Russia metals exporters face rail constraints
MOSCOW, April 27 (Reuters) - Russian metals firms seeking to increase exports to China and other Asian buyers face an uphill struggle as they grapple with infrastructure constraints on Soviet-era rail lines in Siberia and the Far East.
Russia's two main rail lines in the region, the Trans-Siberian and the Baikal Amur Mainline (BAM) are becoming overburdened as freight shipments increase.

China April power shortages hit aluminium, lead demand-industry
HONG KONG, April 27 (Reuters) - An unexpected coal shortage for power plants in key Chinese industrial provinces in April has caused a drop in aluminium and lead demand by end users that threatens to shut some small smelters, while larger ones face lower prices, industry sources said on Wednesday.
China, the world's biggest market and maker for the two metals, normally hits peak electricity demand in the summer and can often face shortages, leading provincial officials to cut supplies to intensive energy users.

Europe aluminium premiums hit all-time peak
LONDON, April 26 (Reuters) - Premiums for duty-paid physical aluminium in Europe hit a record high this week, due to material being locked up in financing deals in London Metal Exchange (LME) warehouses or being in Detroit where it is hard to access.
Premiums for duty-paid metal in Rotterdam  this week were at $210-235 a tonne over London Metal Exchange (LME) cash prices , traders said, the highest since Reuters records began in 1998.

Japan March aluminium shipments fall 8.5 pct yr/yr
TOKYO, April 27 (Reuters) - - Japanese shipments of aluminium products fell 8.5 percent in March from a year earlier, logging the first year-on-year decline in 16 months as last month's devastating earthquake  took a toll on demand from industries across the board.
Shipments for the month fell to 170,878 tonnes as the March 11 earthquake and tsunami in northeastern Japan forced manufacturers to halt or slash production due to infrastructure damage, power cuts and shortages of parts, data provided by the Japan Aluminium Association showed on Wednesday.   

Japan March copper exports fall 16 pct yr/yr
TOKYO, April 27 (Reuters) - - Japan's refined copper exports fell 16 percent in March from a year earlier to 50,258 tonnes for a sixth straight month of year-on-year declines, although the pace was slowing, Ministry of Finance data showed on Wednesday.
Demand for copper, used in utensils, construction materials and computer chips, is often seen as a gauge of economic activity. 

Russia to peg nickel export duty to LME prices
MOSCOW, April 26 (Reuters) - Russia will peg its export tariff for nickel, currently fixed at 10 percent, to metal prices on the London Metals Exchange, an order published on a government web site showed on Tuesday.
At the current price of $26,450 per tonne, the new formula would mean a tariff increase of nearly 30 percent, or nearly $800 per tonne.

U.S. steelmakers see improved second quarter
NEW YORK, April 26 (Reuters) - Two major U.S. steelmakers reported contrasting quarterly results on Tuesday, but both gave positive outlooks for the industry as improving economic conditions boost demand and prices.
U.S. Steel Corp  stock fell 4 percent to close at $49.72 as it reported a wider-than-expected loss in the first quarter, while AK Steel's  shares rose 6.3 percent to $16.96 as its results beat Wall Street estimates.

Glencore holds up to 80 pct LME lead stocks -sources
LONDON, April 26 (Reuters) - Commodity trader Glencore has moved lead stocks to London Metal Exchange monitored warehouses to make evident the value of the holdings before its flotation, senior metal trading sources said.
LME data shows that one entity controls between 50 and 80 percent of inventories. While the exchange does not release the identity of the holder, traders say it is Glencore.

Japan March zinc exports fall 35 pct yr/yr
TOKYO, April 27 (Reuters) - Japan's refined zinc exports for March fell 34.6 percent from a year earlier to 7,444 tonnes, widening from February's year-on-year decrease of 9 percent, Ministry of Finance data showed on Wednesday.
The wider year-on-year drop in March reflected the impact from a March 11 earthquake which devastated northeast Japan and shut nearly 65 percent of the country's production capacity of zinc, used in automotive steel sheet and construction materials. 

Japan rare earths imports from China jump 40 pct in March
TOKYO, April 27 (Reuters) - Japan's imports of rare earths from China rose 40 percent in March from the previous month, Ministry of Finance data showed, with some observers saying demand is so far unaffected by last month's devastating quake though the outlook remains murky.
Imports of rare earths from China stood at 1,603.6 tonnes in March, the data showed on Wednesday. That was up from 1,138 tonnes in February and close to January's 1,783 tonnes, indicating that inflows of the metals continued after Beijing's de-facto ban on shipments was lifted in November. 

METALS-Copper falls on inventory rise, caution on Fed
LONDON, April 27 (Reuters) - Copper fell on Wednesday as inventories of the metal continued to build and as investors tread carefully ahead of a U.S. Federal Reserve decision on monetary policy, but a weaker dollar kept further losses in check.
Benchmark copper  on the London Metal Exchange traded at $9,406 at 0921 GMT, from a close of $9,545 a tonne on Tuesday.

PRECIOUS-Silver steadies, gold perky ahead of Fed decision
LONDON, April 27 (Reuters) - Silver steadied on Wednesday, after its largest one-day slide in over a month the previous day, while gold profited from a weaker dollar which came under pressure ahead of a U.S. Federal Reserve interest rate decision.
The Fed is not expected to signal any rush to scale back its multi-billion dollar support mechanisms for the economy, so investors are waiting to hear more on the outlook for monetary policy from chairman Ben Bernanke when he gives the central bank's first post-decision news conference later in the day.

Gold Futures Surge to Record on Outlook for Sagging Dollar, Low U.S. Rates (Source: Bloomberg)
Gold futures rose to a record $1,530.30 an ounce on speculation that the Federal Reserve will be slow to raise U.S. borrowing costs, weakening the dollar and boosting the appeal of the metal as an alternative asset. The dollar fell to the lowest since December 2009 against the euro after the Fed kept borrowing costs at a record low and said it would continue $600 billion in bond purchases through June. The European Central Bank this month began raising rates to stem inflation.

Oil Rises a Second Day After U.S. Fuel Stockpiles Fall More Than Forecast (Source: Bloomberg)
Oil climbed for a second day in New York after a government report showed gasoline stockpiles in the U.S. declined more than analysts estimated to the lowest since August 2009. Futures advanced from the highest settlement in more than two weeks after the Energy Department said gasoline inventories fell 2.51 million barrels to 205.6 million, declining for the 10th week. Supplies were projected to drop 1 million barrels last week, according to analysts surveyed by Bloomberg News.

20110428 0935 Soy Oil & Palm Oil Related News.

 Soy Oil chart reading : side way range bound.

Soybeans (Source: CME)
US soybean futures ended lower, in step with neighboring grain futures, succumbing to broader-based investor selling across the grain complex at CBOT. Further pressure was derived from demand, with traders looking for a continued pattern of slowing exports and soy crushing, as South America pumps fresh supplies onto the world market, analysts said. Trade was also focused on planting weather, with wet conditions in the eastern Midwest remaining a threat to early corn seedings, which could possibly shift some corn acreage to soybeans. Soybeans for July delivery dropped 4 3/4 cents to $13.84 1/2 a bushel.

Soybean Meal/Oil (Source: CME)
Soy product futures retreated in unison with soybeans, succumbing to the broader based weakness seen across the grain complex at CBOT. The lower theme was consistent, but soyoil garnered mild support from a rebound in crude oil to limit losses, analysts said. July soymeal finished down 0.7% at $361.80 per short ton, while July soyoil dropped 0.4% to 58.41 cents a pound.

Palm oil hits one-week low on technical selling
Malaysian palm oil futures touched a one-week low on Wednesday, tracking comparative oils and crude prices lower, with technical selling also weighing on prices. Benchmark July crude palm oil on Bursa Malaysia Derivatives Exchange closed at 3,277 Malaysian ringgit ($1,096) a tonne, its low for the day and the weakest since April 20. 

Bad weather to cut EU 2011 rapeseed crop-Oil World
HAMBURG, April 26 (Reuters) - Poor weather may cut the European Union's 2011 rapeseed crop to a three-year low of 20.13 million tonnes from 20.59 million tonnes in 2010, Hamburg-based oilseeds analysts Oil World said on Tuesday.
A hard winter and a dry spring in several countries are pressuring yields, especially in Germany, which may lose its position as the EU's top rapeseed producer to France, the firm said.

Argentine soy crop forecasts too big -Oil World
HAMBURG, April 26 (Reuters) - Official forecasts of Argentina's 2011 soybean harvest are too large and do not pay enough attention to unfavourable weather damaging crops, Hamburg-based oilseeds analysts Oil World said on Tuesday.
Argentina's Agriculture Ministry last week raised its forecast of the country's 2011 soybean crop by 0.4 million tonnes to 50.4 million tonnes, still down from 53.9 million  tonnes harvested in 2010.