Thursday, May 5, 2011

20110505 1849 FCPO EOD Daily Chart Study.

FCPO closed : 3229, changed : -36 points, volume : higher.
Bollinger band reading : side way range bound downside biased.
MACD Histrogram : fall lower, seller testing market.
Support : 3200, 3150, 3100, 3070 level.
Resistance : 3250, 3270, 3300, 3350 level.
Comment :
FCPO closed recorded loss with increasing volume participation while soy oil overnight closed loss for the second day and currently trading weaker.
News wise, Reuters survey reported a negative fundamental data with little improve export but higher stock and output level compare to Mar 2011 while on the other hand news reported that India's PEC tenders to buy 15,000 tonnes of palm olein vegetable oil due to low stock level at port.
Daily chart formed a down bar candle with upper shadow positioned nearer to lower Bollinger band level after market opened little lower, edge up higher tested resistance levels followed by last hour heavy sell down to closed at the low of the day.
Chart reading suggesting a side way range bound downside biased market development testing possibly testing lower support levels with MACD indicator having negative crossed down.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/break down with quick cut loss and profit target.

20110505 1803 FKLI EOD Daily Chart Study.

FKLI closed : 1510 changed : -6 points, volume : lower.
Bollinger band reading : side way range bound little downside biased with possible pullback correction.
MACD Histrogram : falling, seller taking exposure.
Support : 1500, 1485, 1470, 1458 level.
Resistance : 1515, 1530, 1540, 1550 level.
Comment :
FKLI closed recorded loss for the third day with slower volume transacted doing 11 points discount compare to cash market that closed lower while regional markets trading mixed.
Slowing down growth on U.S. service sector, rate hike announced by India and Vietnam central bank seems shying traders away avoiding having too much exposure.
Daily chart formed a down bar candle with upper shadow closed below lower Bollinger band level with the bandwidth narrowing after market opened unchanged, traded within 10.5 points range bound market and closed right at yesterday and today's low.
Chart reading suggesting a side way range bound little downside biased market development with possible upward pullback correction 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.

20110505 1533 Global Commodities Related News.

Malaysia's April palm oil stocks seen at 6-month high
KUALA LUMPUR, May 5 (Reuters) - Malaysian palm oil stocks probably hit a six-month high in April from a month earlier as strong production outpaced modest growth in exports, a Reuters survey showed on Thursday.
Stocks in the world's No.2 producer likely rose nine percent to 1.76 million tonnes, marking the highest level since October but moderating the growth pace from March, a median survey of five plantation houses showed.

GRAINS-U.S. corn extend gains on tight supply, forecast rain
SYDNEY, May 5 (Reuters) - U.S. corn futures rallied for a third straight day on Thursday, supported by tight old crop supplies in the United States and forecast rain likely to slow planting which is already running late in the Midwest corn belt.
"Corn will continue to hold out on its own while there's no surprise there's some recovery in soybeans and wheat futures," said Brett Cooper, senior manager, markets, for FCStone

Mexico cotton output seen up on high price-attache
WASHINGTON, May 4 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Mexico:
"Mexican cotton production in marketing year 2011/12 is forecast to increase to 1.14 million bales as high international prices are supporting expanded production on planted areas that had been abandoned or directed to other commodities.

US WEATHER WATCH-Cool rain stalls Midwest corn and soy
Continued rains and cool temperatures in the Midwest are stalling corn seedings and delaying spring fieldwork ahead of the soybean planting season. The corn planting pace continues to fall far behind average levels, leading to concern about potential production declines.
Dryness plagues the Plains hard red winter wheat region as the crop begins jointing an heading in the south. Some chance of rain over the next week in the east and north, away from the large acreage areas of the southwest.

Greece 2011/12 sugar output to remain steady-attache
WASHINGTON, May 4 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Greece:
"According to unofficial estimates, 2011/2012 sugar production, consumption and trade is forecast to remain steady from the previous year. The Hellenic Sugar Industry is the only sugar producer in Greece and one of the most significant agricultural industries of the country.

US biodiesel production set to ramp up
CHICAGO, May 4 (Reuters) - The U.S. biodiesel industry is on track to rev up production after the renewal of a tax credit, with analysts expecting a big increase in soyoil usage to produce the biofuel in a government report on Thursday.
The tax credit, which expired at the end of 2009, was renewed by Congress in December 2010. The industry took about two months to get back in gear.

Brent falls below $121 on US crude build, economic concerns
SINGAPORE, May 5 (Reuters) - Brent crude dipped below $121 a barrel on Thursday, pressured by a sharp rise in U.S. crude stocks, disappointing economic data from the world's biggest energy consumer and concerns over Chinese inflation.
"The inventory numbers and concern over the U.S. economy are the main factors driving the markets lower today," said Michael Lo, a Hong Kong-based analyst with Nomura International.

China may introduce oil, gas resource tax of up to 10 pct-paper
SHANGHAI, May 5 (Reuters) - China may introduce a resource tax of between five to 10 percent on the domestic sales of crude oil and natural gas as part of the country's overall tax reform, the Shanghai Securities News said on Thursday.
Citing a revised draft of the proposed regulation, the paper said the coal levy would continue to be based on total tonnage sold instead of revenue collected. The coal tax may be raised to between 0.30 to eight yuan per tonne from the current 0.30 to five yuan.

U.S. ethanol production down slightly in latest week
KANSAS CITY, May 4 (Reuters) - U.S. ethanol production fell slightly in the latest week, the government said on Wednesday, resuming a series of output reductions after a jump the previous week.
U.S. production of the alternative fuel totaled 875,000 barrels per day (bpd) for the week ending April 29, down from 883,000 the prior week, the Energy Information Administration said.

Shanghai copper hits 5-mth low, LME extends losses
SINGAPORE, May 5 (Reuters) - Shanghai copper dropped to five-month lows and London futures hit their lowest since mid-March in a broad decline across commodities spurred by worries over the U.S. economy and further monetary tightening in China.
"We've seen an easing in crude oil and gold prices in this broad commodity selloff, so it's only logical that base metals, which are fundamentally weaker, should fall as well," Shanghai CIFCO Futures analyst Zhou Jie said.

Silver slips to one-month low after margin hike; gold steady
SINGAPORE, May 5 (Reuters) - Spot silver prices slid for the fifth straight day on Thursday to the lowest in a month, down by a fifth since hitting a record high a week ago, after another hike in margin requirements for U.S. silver futures squeezed some of the speculative froth out of the market.
"There is liquidation going on in silver after prices rose too much and too fast. Nobody knows where the bottom is, but I don't think there is much room below $35," Ronald Leung, a dealer at Lee Cheong Gold Dealers in Hong Kong, said.

Silver triggers broad decline in commodities
HONG KONG, May 5 (Reuters) - Silver nursed losses on Thursday after suffering its biggest three-day drop in five years on heavy profit taking while the euro consolidated gains against the dollar before the European Central Bank meeting where it is expected to reinforce its hawkish outlook.
"This is more of a consolidation phase and we are likely to see low double digit returns this year after a recent nice run up," said Binay Chandgothia, portfolio manager at Principal Global Investors in Hong Kong. The firm manages more than $200 billion in assets worldwide.

S.African gold miners to report lower output in Q1
JOHANNESBURG, May 4 (Reuters) - South Africa's big three gold miners will report drops in production in the first three months of 2011 but earnings will be lifted for at least two of the companies because of other factors.
And as the gold price scales to lofty new peaks analysts say the miners are set to deliver better results as the year goes on, though seasonal challenges still loom, such as higher power supply tariffs in the South African winter.

Copper demand, price to remain high-Aurubis
PIRDOP, Bulgaria, May 4 (Reuters) - Europe's biggest copper maker, Aurubis , expects overall demand for copper to remain strong this year with prices picking up at times again to $10,000 a tonne, a senior manager of the company said.
Peter Willbrandt, member of the executive board in charge of primary copper production said late on Tuesday that a recovering economy in emerging markets and Europe, and the need for reconstruction of Japan was increasing demand for copper.

20110505 1101 Global Commodities Related News.

OIL: Oil prices fall after U.S. crude build
NEW YORK, May 4 (Reuters) - Oil prices fell to their lowest in two weeks on Wednesday, hit by a build in U.S. crude stocks and a broad decline in commodities after weak U.S. economic data and concerns over tighter Chinese monetary policy.
"There's a bit of a shift out of risky assets like oil. It doesn't mean it has turned bearish, but the run can't keep going in one direction," said Tom Bentz, broker at BNP Paribas Commodity Futures in New York.

NATURAL GAS: Natural gas ends down 2 pct on weather, technicals
NEW YORK, May 4 (Reuters) - U.S. natural gas futures ended lower on Wednesday as milder weather this week continued to slow demand and longs took profits ahead of Thursday's weekly inventory report despite expectations for another below-average storage build.  
"Each day we press into May brings us that much closer to milder weather demand and the typical flurry of large (storage) injections. Plodding along, the calendar also inches toward outage exits for the beleaguered nuclear fleet," Pax Saunders, analyst at Gelber & Associates in Houston, said in a report.

EURO COAL: Prices stable, Chinese seek Australian coal
LONDON, May 4 (Reuters) - Prompt European delivered physical coal prices were stable on Wednesday after a day of thin trade.
"The reality is that trade is extremely thin," one European trader said.

COMMODITIES: Third day of falls as investors fret over demand
NEW YORK, May 4 (Reuters) - Commodities fell for a third straight day on Wednesday, extending a trend evident since the start of May as investors who had ridden oil, metals and grains to new highs last month now feared a steep correction.
"My understanding is that when a boat is leaning too far one way, it tips," said Matthew Bradbard, president at MB Wealth Corp in Hollywood, Florida.

GLOBAL MARKETS: Silver licks wounds after heavy losses, ECB eyed
HONG KONG, May 5 (Reuters) - Silver nursed losses on Thursday after suffering its biggest three-day drop in five years on heavy profit taking while the euro consolidated gains against the dollar before the European Central Bank meeting where it is expected to reinforce its hawkish outlook.   
"Positioning is light going into the ECB and talk of double-no-touch 1.4750/1.4950 in options market may contain the range. But I expect the ECB to keep the 'strong vigilance' wording," a trader at a U.S. investment bank said.

20110505 1059 Local & Global Economic Related News.

Malaysia: RON97 petrol price goes up 20 sen to RM2.90 per liter
The price of RON97 petrol went up by 20 sen to RM2.90 per liter effective midnight yesterday while the price of RON95 and diesel remain unchanged. Deputy president of Petroleum Dealers Association of Malaysia Datuk Zulkifli Mokti said the increase was due to the rise in the price of crude oil in the global market. (Bloomberg)

India: Bigger rate increase signals shift in inflation fight
The Reserve Bank of India’s decision to double the magnitude of interest rate increases signals it is ready to step up the battle against inflation even at the risk of damping the nation’s economic growth. The central bank’s half a percentage point increase in the benchmark repurchase rate to 7.25% yesterday was the biggest move since July 2008. (Bloomberg)

Vietnam: Central bank raised its repurchase rate for the fifth time this year as officials intensify the fight against the highest inflation since 2008. The repurchase rate for the seven-day term was increased to 14% from 13%, the State Bank of Vietnam said in an emailed statement. It has doubled from 7% in early November last year. The central bank last week raised the refinancing rate to 14% and the discount rate to 13%, effective May 1. (Source: Bloomberg)

EU: Services, manufacturing growth accelerated in April
European services and manufacturing growth accelerated in April, led by factory output, suggesting the 17- member Euro region economy is weathering surging energy costs and tougher budget cuts. Euro region retail sales fell 1% in March from the previous month, when they rose 0.3%.. (Bloomberg)

UK: House prices fell in April for first time in 3 months
UK house prices fell in April for the first time in 3 months and values will probably remain unchanged or decline “modestly” during the rest of the year, National Building Society said. The average cost of a home declined 0.2% from March to GBP165k, marking the first decrease since January. (Bloomberg)

US: Services grow at slowest pace in 8 months
Service industries in the US expanded in April at the slowest pace in 8 months as companies cut back in response to higher energy costs. The Institute for Supply Management’s index of non-manufacturing companies declined to 52.8 last month. (Bloomberg)

US: Treasury to auction USD72bn in long term debt
The US Treasury Department plans to sell USD72bn in its quarterly sales of long term debt next week and anticipates auction sizes will “remain steady” as Congress and the White House debate raising the debt limit. Treasury Secretary Timothy F. Geithner said that the US will have 3 weeks more than previously projected before hitting its borrowing limit. (Bloomberg)

US: Announced job cuts decline 4.8% in April
US employers announced fewer job cuts in April than the same month last year, a sign that the labor market is firming. Planned firings decreased 4.8% to 36,490 last month from April 2010. Government agencies accounted for the biggest cutbacks by industry. (Bloomberg)

20110505 1057 Malaysia Corporate Related News.

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

Perodua confident of meeting sales target
Perusahaan Otomobil Kedua (Perodua), the country's largest carmaker, is confident of meeting its sales target of 195,000 units this year, as the supply of imported auto parts and paints is expected to be back to normal earlier than expected. The company also anticipates its upcoming new model, which is scheduled to be launched before September, to help achieve its sales target. "We expect our operations and the supply chain to be back to normal by end of July," said managing director Datuk Aminar Rashid Salleh at a media briefing yesterday. (BT)

O&G provider Bumi Armada to raise RM3bn from IPO
Malaysian oil and gas support services provider Bumi Armada plans to raise nearly USD1bn (RM2.97bn) from its IPO, the next largest offer in Malaysia since the listing of Petronas Chemicals Group (RM2.8bn) last year, according to a Reuters report. In the report quoting a banking source, it said the IPO values the company at about 20 times price-earnings for its 2011 earnings, and 16 times for 2012. Bumi Armada was expected to file a draft prospectus with the Malaysian regulators this week for an IPO of around USD80m, according to the report. (Malaysian Reserve)

Dialog Axiata in JV to provide BPO services in Sri Lanka
Axiata Group’s subsidiary Dialog Axiata PLC is teaming up with India’s Firstsource Solutions Ltd (FSL) to provide information technology enabled (ITES) and business process outsourcing (BPO) services in Sri Lanka and also to the international market. Axiata said on 4 May, Dialog Axiata and the latter’s unit Dialog Business Services (Private) Ltd had entered into a shareholders’ agreement with FSL on Tuesday. It said the JV with FSL also complemented Dialog’s own contact centre operation. (Financial Daily)

Tricubes guarantees MavCap 15% IRR for RCPS
Tricubes provided further clarification yesterday on Malaysia Venture Capital Management’s (MavCap) funding on its national email project. In a filling with Bursa Malaysia yesterday, Tricubes said MavCap had subscribed for 400,000 redeemable convertible preference shares (RCPS) in its wholly owned subsidiary, Tam Tam SB, of 10 sen each with a premium of RM13.65 each, for a total consideration of RM5.5m. It said the RCPS is the most efficient method to raise funds for its urgent working capital needs and carries the interest at a cumulative Investment of Rate of Return (IRR) of 15% per annum. (Financial Daily)

Mutiara Goodyear-Tambun Indah JV to develop Penang land
Mutiara Goodyear development, via its wholly owned subsidiary Pembangunan Bandar Mutiara (PBM), has entered into a JV with Tambun Indah to develop a 213ha land in Seberang Prai. In a statement yesterday, Mutiara Goodyear said the JV would be carried out through Palmington SB which is 40:60 owned by PBM and Tambun Indah respectively. Mutiara Goodyear had acquired 40% and 60% stakes in Palmington for RM2.34m and RM3.51m yesterday. (Financial Daily)

MISC to sell older container vessels
National carrier MISC is looking to sell three of its smaller container vessels, Bunga Delima, Bidara Bunga and Bunga Kenari, with each having a 1,200 TEU (20-foot equivalent unit) carrying a capacity, according to reports. Another vessel, a sistership to the three, the Bunga Terasek, is understood to be laid up, but is not part of the sale. All the vessels are about 20 years old. News on the potential sale has been reported in international shipping publications. (Financial Daily)

Donghwa decides not to buy Heveaboard’s assets
Donghwa Malaysia SB has decided not to pursue its proposed acquisition of Heveaboard. Heveaboard said Donghwa had indicated in a letter that it decided not to pursue the proposed acquisition after Heveaboard imposed certain conditions following its request for an extension of time to complete the preliminary due diligence. “Following this, the earnest deposit shall be refunded to Donghwa,” said Heveaboard. (Financial Daily)

SunREIT: Metroplex sues SunREIT Manager, Trustee. Metroplex Holdings Sdn Bhd, former owner of Putra Place has filed a summons-in-chambers against Sunway REIT Management and OSK Trustees as the sale of Putra Place by public auction has breached the National Land Code, 1965. (Source: The Edge Financial Daily)

TA Global: Mulls setting up REIT for hotels. TA Global Bhd may consider setting up a hospitality real estate investment trust (REIT) to unlock the value of its hotel assets that are located in China, Singapore, Australia and Canada which have a combined asset value of more than RM2b. (Source: The Star)

Plantation: MSM Malaysia to raise RM900m. MSM Malaysia Holdings Bhd, the sugar refining arm of state-owned Felda Global Ventures Holdings Sdn Bhd, plans to sell as many as 234.6m shares through an initial public offering (IPO) in Kuala Lumpur, raising as much as RM900m. (Source: Business Times)

7 shortlisted for Vale mega project
Brazil's Vale International, the world's second largest mining company, has shortlisted as many as seven Malaysian companies to undertake the first phase of a USD2.5bn (RM7.45bn) infrastructure development project in Perak. People involved in the tender process told Business Times that the seven companies shortlisted for the first phase work are required to submit a detailed plan by next week. It is understood that Muhibbah Engineering, Gadang and Sunway Construction are among the seven companies that have been shortlisted. "All the submissions will have to be in by May 10," said a source. It is believed that the first phase will focus on earth works job, as well as the flattening of land in the area. The total cost for the earth work portion of the contract is estimated to be in the region of between RM200m and RM300m. (BT)

20110505 0951 Renewables Energy Related News.

COPENHAGEN, May 4 (Reuters) - Wind turbine manufacturer Vestas  reported a bigger-than-forecast operating loss for the first quarter, with orders below expectations, and forecast a breakeven result for the first half of this year.
The loss before interest and tax at the Danish company was 69 million euros ($102.2 million) in January-March against a loss of 39 million in the first quarter last year.

FRANKFURT, May 4 (Reuters) - Strong demand from the solar and semiconductor industries buoyed first-quarter results of German specialty chemical group Wacker Chemie , leading the company to hike its profit outlook for the ongoing year.
"Customer demand remains high at all divisions," Chief Executive Rudolf Staudigl said in a statement on Wednesday.

VERONA, Italy, May 3 (Reuters) - Growth of new photovoltaic capacity in Germany, the world's biggest solar market, is expected to slow in 2011 due to planned cuts in incentives, a senior industry official said on Tuesday.
Germany added more than 7 gigawatts (GW) of photovoltaic (PV) capacity, which turns sunlight into power, in a record-breaking 2010 to reach a total of about 17 GW, equal to 17 large power plants.

VERONA, Italy, May 3 (Reuters) - Solar energy capacity in the United States, a major global solar market, is expected to rise to 10 gigawatts in 2015 as the country boost renewable energy growth, a senior industry official said on Tuesday.
"Today, solar in the fastest growing industry in the United States ... Our goal for solar is 10 gigawatts by 2015," said Tom Kimbis, director of policy and research at the Solar Energy Industries Association (SEIA), the U.S. industry's trade group.

COPENHAGEN, May 3 (Reuters) - Danish wind turbine manufacturer Vestas  has received an order from the fiercely competitive Chinese market for 50 turbines with total capacity of 100 megawatts.
The Vestas V90-2.0 MW turbines for a wind power project in Shandong Province were scheduled to be delivered in the second and third quarters, Vestas Wind Systems A/S said on Tuesday.

VERONA, Italy, May 2 (Reuters) - Italy's total installed photovoltaic capacity may reach 7,000 megawatts by the end of June due to a rush to sign up for expiring incentives, a senior official at Italy's state energy services agency GSE said.
"I think we can arrive at 7,000 megawatts at the end of June," Gerardo Montanino, director of GSE's operating division told Reuters on the sidelines of a photovoltaic conference in northern Italy on Monday.

VERONA, Italy, May 2 (Reuters) - The world is expected to add 20-25 gigawatts (GW) of photovoltaic capacity this year as new markets boost solar energy growth, chairman of the European Photovoltaic Industry Association (EPIA) told Reuters on Monday.
"The EPIA forecast with regards to the additional (global) photovoltaic capacity in 2011 is north of 20 gigawatts," Ingmar Wilhelm said in an interview at an international photovoltaic conference in northern Italy.

FRANKFURT, May 2 (Reuters) - Germany on Monday launched its first commercial-size wind power park in the Baltic Sea, adding to some small existing capacity in the North Sea, operator EnBW  said.
The 48.3 megawatt unit called Baltic 1, which is some 16 kilometres north of the Darss/Zingst peninsula, has started feeding power into the national grid, the utility said.

BUCHAREST, May 2 (Reuters) - Czech utility CEZ  has resumed works at its 1.1 billion euro wind energy park in southern Romania and should finish it in 2012, one year later than planned, CEZ said on Monday.
The two-stage 600 megawatt wind park in the southern Romanian villages of Fantanele and Cogealac is one of the largest investment projects in recession-hit Romania.

SINGAPORE, April 29 (Reuters) - Malaysia needs to revive plans to transmit hydro-generated electricity from the resource-rich state of Sarawak to the rest of the country to diversify its energy mix, said the chairman of state utility Tenaga Nasional Berhad on Friday.
The Southeast Asian country faces the twin challenges of rising coal prices and fast-depleting gas reserves. The two fossil fuels make up almost 95 percent of the Malaysian peninsula's generation mix, with hydropower accounting for another 5 percent. 

20110505 0950 Biofuels Related News.

WASHINGTON, May 3 (Reuters) - A bipartisan group of senators on Tuesday introduced a bill to end the U.S. subsidy for ethanol producers and the tariff on ethanol imports, saying the government can no longer afford to pay the benefits.
The government provides 45 cents to refiners for every gallon of ethanol they blend with gasoline, costing taxpayers $6 billion a year. Ethanol imports are hit with 54-cent-per-gallon tariff and a 2.5 percent ad valorem tax.

BRUSSELS, May 3 (Reuters) - A divisive European debate over the green credentials of biofuels has stalled investment and threatens the future of some producers, but could also create lucrative opportunities, companies said on Tuesday.
After a two-year investigation, the European Commission has decided that the complex issue of "indirect land use change" (ILUC) can lessen carbon savings from biofuels. In July it may announce moves to curb the least sustainable -- possibly by raising an EU-wide sustainability benchmark.

BRASILIA, April 28 (Reuters) - Brazil's government is still considering reducing the share of ethanol in the country's gasoline blend even though prices of the biofuel have begun falling, Energy Minister Edison Lobao said on Thursday.
And late on Thursday an unnamed official at the presidency said the government will have the option from Friday of reducing the minimum ethanol content below the current variable range.

BRASILIA, April 29 (Reuters) - The mandatory mix of ethanol in gasoline in Brazil can now be cut to as low as 18 percent after the government lowered the bottom end of a range within which the blend can be adjusted.
All gasoline sold in Brazil currently has a 25 percent blend of anhydrous ethanol, a policy that helps limit gasoline consumption and keep a lid on fuel prices at the pump. Previously, Brazilian law allowed the mix to be lowered only to 20 percent.

KANSAS CITY, April 27 (Reuters) - U.S. ethanol production rebounded last week, the government said on Wednesday, bouncing back from a seven-month low output level.
The rebound comes amid strong U.S. exports of ethanol and despite fears over waning consumer demand for fuel due to high prices at the pump.

20110505 0946 Global Market Related News.

  DJIA chart reading : pullback correction upside biased.

Hang Seng chart reading : downside biased with possible pullback correction.

Asia's growth to cool as inflation heats up
SINGAPORE May 4 (Reuters) - Soaring food and energy prices may temper Asia's economic outlook this year, putting central bankers in a tight spot as they try to cap inflation without choking off growth, Reuters polling data shows.
Economists have marked down 2011 growth forecasts for India and Australia since the start of the year, while they pushed up both growth and inflation forecasts for China. Growth estimates also brightened a bit for countries including Indonesia, Malaysia and Taiwan.

Asian Stocks Drop on Concern U.S. Economic Recovery is Waning (Source: Bloomberg)
Asian stocks declined, dragging a regional benchmark index lower for a third day, as reports that showed lower-than-forecast growth in U.S. service industries and employment sparked concern the recovery in the world’s biggest economy is faltering.

ADB Says 3 Billion People in Asia May Reach Europe-Level Incomes by 2050 (Source: Bloomberg)
Asia’s growth can propel three billion people to affluent levels by 2050 should policy makers successfully narrow inequalities and avoid falling into a so- called middle-income trap, the Asian Development Bank said. Successful national and regional policies may boost Asia’s gross domestic product to $148 trillion by mid-century, making up 51 percent of global output in 2050, the Manila-based lender said in a report today. In another scenario, where countries such as China, India, Indonesia and Vietnam see growth slow and others fail to stoke their expansions, the region would account for 32 percent, or $61 trillion, of global GDP in 2050, it said.

ADP Estimates U.S. Companies Added 179,000 Jobs in April (Source: Bloomberg)
Companies in the U.S. added workers in April, signaling the labor market is strengthening, data from a private report based on payrolls showed today. Employment increased by 179,000 in April from a revised 207,000 the prior month, according to figures from ADP Employer Services. The median estimate in the Bloomberg News survey called for a 198,000 advance this month.

Treasuries Rise After Report of Services Slump; Bill Rates Fall to Record (Source: Bloomberg)
Treasuries rose, pushing 10-year note yields to a six-week low, as private reports showed service industries in the U.S. expanded less than forecast in April and companies added fewer jobs last month than projected. Six-month bill rates reached a record low for a third consecutive day with the U.S. reducing sales of short-term securities as lawmakers negotiate an increase in the $14.3 trillion federal debt ceiling. The Treasury said it will auction $72 billion in 3-, 10- and 30-year debt next week even with the U.S. likely to exceed its borrowing capacity before or after Aug. 2. Federal Reserve Bank of Boston President Eric Rosengren said stimulus is necessary to spur the “anemic” economy.

U.S. factories busy in March, car sales up
WASHINGTON, May 3 (Reuters) - U.S. factory orders surged in March, posting a fifth straight monthly increase that showed a healthy manufacturing sector well placed to support economic recovery.
The Commerce Department said on Tuesday new orders for manufactured goods rose 3 percent to a seasonally adjusted $463 billion, well above Wall Street economists' forecasts for a 1.9 percent pickup.

U.S. Service Industries Expand at Weakest Pace Since August as Orders Cool (Source: Bloomberg)
Service industries in the U.S. expanded in April at the slowest pace in eight months as companies cut back in response to higher energy costs.

U.S. Treasury to Sell $72 Billion in Long-Term Debt, Sees ‘Steady’ Sales (Source: Bloomberg)
The U.S. Treasury Department plans to sell $72 billion in its quarterly sales of long-term debt next week and anticipates auction sizes will “remain steady” as Congress and the White House debate raising the debt limit.

Fed’s Williams Says High Inflation Is ‘Very Unlikely’ as Commodities Ease (Source: Bloomberg)
Federal Reserve Bank of San Francisco President John C. Williams said a period of high inflation is “very unlikely” because rising commodity prices spurred by global demand aren’t likely to keep climbing. “The economy today faces many pitfalls, but I don’t believe that runaway inflation is one of them,” the regional bank chief said today in his first policy speech as a central bank official. Even so, “one of the most important policy questions we are grappling with at the Fed has to do with inflation.”

Employers in U.S. Announced 4.8% Fewer Job Cuts in April, Challenger Says (Source: Bloomberg)
U.S. employers announced fewer job cuts in April than the same month last year, a sign that the labor market is firming. Planned firings decreased 4.8 percent to 36,490 last month from April 2010, according to a report today from Chicago-based Challenger, Gray & Christmas Inc. Government agencies accounted for the biggest cutbacks by industry.

California Tax Revenue $2.3 Billion Ahead of Plan, May Help Shave Deficit (Source: Bloomberg)
California has collected $2.3 billion more from income taxes this fiscal year than was projected, a gain that may help Governor Jerry Brown and lawmakers fill what remains of a $26 billion deficit. Income-tax collections, which compose about 55 percent of general-fund revenue, were 5.1 percent above what was anticipated for July 1 through April 30, the nonpartisan Legislative Analyst’s Office said in a report today. At the same time, corporate taxes were $654 million below projections.

China’s ‘Hawkish’ Central Bank May Tighten Even as Economic Growth Cools (Source: Bloomberg)
China’s central bank said taming inflation is its top priority, signaling that more tightening is possible even after a manufacturing survey showed that growth may be moderating in Asia’s biggest economy. “Stabilizing prices and managing inflation expectations are critical,” the People’s Bank of China said in a first- quarter monetary policy report published yesterday. Bank reserve requirements have no “absolute ceiling,” the report said, restating Governor Zhou Xiaochuan’s comment on April 16.

China inflation to ease in second half -c.banker
BEIJING, May 4 (Reuters) - Chinese inflation will moderate in the second half of the year as government measures to curb price rises hit their mark, a vice central bank governor said in remarks published on Wednesday.
The official China Securities Journal also cited Yi Gang as saying that China would keep mopping up excess cash in the economy by raising banks' required reserves and issuing central bank bills.

Trichet’s ‘Close Call’ Decision May Signal How Fast ECB Will Raise Rates (Source: Bloomberg)
European Central Bank President Jean- Claude Trichet today may indicate just how fast he’s prepared to raise interest rates over the coming months. While policy makers meeting in Helsinki will keep the benchmark rate at 1.25 percent, according to all 48 economists in a Bloomberg News survey, any pledge by Trichet for “strong vigilance” would signal an increase as soon as June. The Frankfurt-based central bank in April raised borrowing costs from a record low for the first time in almost three years.

Greece Should Get Loan Terms Extended to Avoid Restructuring, Adviser Says (Source: Bloomberg)
Greece doesn’t need to restructure its debt for now and should only consider an extension of its international loans, said Herakles Polemarchakis, an economic adviser to Greek Prime Minister George Papandreou. “The debt has to be addressed,” Polemarchakis said in an interview at an event late yesterday at the London School of Economics. “I think that the rescheduling -- or re-profiling as it is called sometimes -- of the 100 billion euros given by the International Monetary Fund and the European Union, that’s something that could easily be done.”

Lagarde Says Euro’s Strength Brings Benefits by Cutting Raw-Material Costs (Source: Bloomberg)
A strong euro benefits the region’s companies as it cuts costs of raw materials priced in dollars and forces European firms to seek additional ways to boost competitiveness, French Finance Minister Christine Lagarde said. The euro is doing “extremely well” Lagarde said in an interview with Bloomberg Television in Hanoi, even as she added that she would like to see a “strong dollar.” The European currency has advanced 11 percent against the dollar so far this year as the European Central Bank raised rates and the Federal Reserve continued to pledge “exceptionally low” borrowing costs.

U.K. House Prices Fell for the First Time in Three Months, Nationwide Says (Source: Bloomberg)
U.K. house prices fell in April for the first time in three months and values will probably remain unchanged or decline “modestly” during the rest of this year, Nationwide Building Society said. The average cost of a home declined 0.2 percent from March to 165,609 pounds ($273,800), Britain’s biggest customer-owned lender said in an e-mailed report today. That’s the first decrease since January and compares with the median forecast for a 0.1 percent increase in a Bloomberg News survey of 14 economists.

Russia to Resist Rushing Higher Rates Even as Prices Climb, Economists Say (Source: Bloomberg)
Russia will avoid speeding up interest-rate increases even after inflation accelerated last month as central bankers seek to avoid choking economic growth, economists said. The inflation rate climbed to 9.6 percent from 9.5 percent in March, matching the fastest pace since October 2009, a report showed yesterday. The central bank unexpectedly raised its main interest rates last week for a second time this year to rein in price growth. At 8.25 percent, the refinancing rate remains negative when adjusted for inflation.

Euro Snaps Decline Versus Yen on Speculation ECB Will Signal Higher Rates (Source: Bloomberg)
The euro snapped a two-day decline versus the yen on speculation European Central Bank President Jean-Claude Trichet will signal more interest-rate increases after a policy meeting today. The single currency traded within 0.3 percent of a 13-month high versus the pound before a German report that economists said will factory orders gained for a third month, adding to signs the region is picking up. New Zealand’s dollar rose after a government report showed employers added more jobs in the first quarter than economists forecast.

Mexico, Russia, Thailand Add $6 Billion of Gold to Reserves, IMF Data Show (Source: Bloomberg)
Mexico, Russia and Thailand added gold now valued at about $6 billion to their reserves in February and March as prices advanced to a record, the dollar weakened and Treasuries lost investors money. Mexico bought 93.3 metric tons since January, adding to holdings of about 6.9 tons, according to International Monetary Fund data. Russia increased its reserves by 18.8 tons to 811.1 tons in March and Thailand expanded assets by 9.3 tons to 108.9 tons in the same month, the data show.

FOREX-Euro holds slim gains vs dollar, awaits Portugal news
NEW YORK, May 3 (Reuters) - The euro was up slightly against the dollar on Tuesday in choppy trading and was likely to post further gains this week on institutional buying as investors expected more euro zone rate hikes.
But weakness in stocks and commodities has limited gains in the euro, with investors paring back risky trades amid fears of a geopolitical backlash following the death of al Qaeda leader Osama bin Laden.

Stocks dip; Portugal yields fall after bailout
LONDON, May 4 (Reuters) - World stocks fell further from last week's three-year high as falling commodity prices and concerns about signs of economic slowdown in China prompted investors to scale back their risky positions. Portuguese bond yields fell after Portugal agreed a three-year 78-billion-euro ($116 billion) bailout with the European Union and IMF on Tuesday, becoming the third euro zone country in a year, after Ireland and Greece, to seek financial aid.

20110505 0943 Global Commodities Related News.

FAO sees crop concerns driving higher food prices
ASTANA, May 3 (Reuters) - World food prices are set to rise again as concerns persist over Chinese and U.S. winter crops and global production lags increasing demand, the head of the United Nations' Food and Agriculture Organisation said on Tuesday.
FAO Director General Jacques Diouf told Reuters Insider that rising output of biofuels was also contributing to food shortages, consuming more than 100 million tonnes a year of cereals that would otherwise be used in food production.

Corn (Source: CME)
US corn futures close higher as supply worries boost the market even as other commodities stumble. Concern about extremely tight supplies this summer fueled gains, along with the sluggish start to the planting season. Farmers unable to plant corn on time will switch to soybeans instead because corn yields drop the later the crop is planted. "I think the trade is starting to contemplate yield reductions, if not acreage reductions," says Western Milling analyst Joel Karlin. May CBOT corn climbs 7 1/2c to $7.26 1/2 per bushel.

Wheat (Source: CME)
US wheat futures fall to the lower end of their recent trading range, dropping more than 2% on a broad commodity selloff and reports of less-fearful crop conditions from the Kansas winter wheat tour. Product for July delivery ended down 21 1/4c at $7.72/bushel at the CBOT. Investors broadly reduced risk exposure, overshadowing supportive crop concerns as the threat of smaller production prospects amid declining winter wheat crop conditions and wet weather idling spring wheat seedings in the northern Plains. Some analysts say the market was overvalued based on world supply and demand, and without any surprises from the tour, futures had little to support them.

Rice (Source: CME)
The most-actively traded US rough rice futures contract finished limit down as the market was caught up in a broader commodity selloff. Weakness in the cash market adding to the defensive tone, said Jack Scoville at Price Futures Group. The cash market never responded to the previous rally, and once funds began to exit commodities, futures lacked strength to withstand the pressure. However, rice still has some serious production issues limiting losses, with dryness in Texas and wet conditions delaying plantings in the Delta supportive features, Scoville noted. CBOT July rice finished down 50c at $14.89/hundredweight. The daily limit expands Thursday to 75c.

Corn Futures Advance 0.6% to $7.335 Per Bushel; Wheat Is Little Changed (Source: Bloomberg)
Corn for July delivery advanced 0.6 percent to $7.335 per bushel on the Chicago Board of Trade at 8:01 a.m. in Singapore, while soybeans for delivery the same month slipped 0.2 percent to $13.4875 per bushel. Wheat futures were little changed at $7.7175 per bushel.

US corn, wheat, soy fall on firmer dollar, weather outlook
SYDNEY, May 4 (Reuters) - U.S. corn futures extended falls as a stronger dollar and falling oil prices weighed on the soft commodities complex."On a macro theme all commodities seem to be overbought and perhaps the catalyst for a correction will be a stronger U.S. dollar," said Adam Davis, senior grains trader at Merricks Capital in Melbourne which invests in agricultural commodities.

Dryness now damaging German grain crops - farmers
HAMBURG, May 4 (Reuters) - The prolonged period of dry weather in Germany has now started to damage grain and rapeseed crops, German farming association DBV said on Wednesday.
Rapeseed had especially suffered from a very cold winter followed by dry weather, it said. There is also concern about grain crops.

China's top wheat area hit by extended drought-paper
BEIJING, May 4 (Reuters) - China's Henan province, the country's largest wheat area, has hit by lingering dry weather, and local authorities urged farmers to water their crops at the crucial growing stage despite the high costs it could incur, state media reported on Wednesday.
China Securities Journal cited Henan Government Office of Flood Control and Drought Relief Headquarters as saying that 1.078 million hectares of wheat in the province was affected by drought. The province produces about 26 percent of China's total wheat output.

Dry weather pressures wheat potential in western Kansas
COLBY, Kansas, May 3 (Reuters) - Wheat fields in northern and central Kansas showed yield potential that was slightly below average as dry weather hampered development of the crop in western portions of the top wheat-producing state, crop scouts on annual tour found on Tuesday.
Scouts on the Wheat Quality Council's tour of hard red winter wheat fields in Kansas pegged average yields in northern and central regions of the state at 40.0 bushels per acre. The first day's results of the tour have averaged 41.5 bushels per acre during the past nine years. In 2010, the results from the first day of the three-day tour estimated yields at 40.7 bushels per acre.

US winter wheat may fall to 5-year low on drought
CHICAGO, May 3 (Reuters) - A severe drought has slashed the U.S. winter wheat crop to the smallest in five years, a Reuters Poll showed, but bread lovers will be spared the pinch in their wallets as the shortfall has been factored into wheat futures.
Tuesday was the first day for a tour of wheat fields in the U.S. Plains hard red winter wheat region and crop scouts said central Kansas wheat showed good yield potential after receiving some timely rains last week.

Corn OTC volume jumps as weather threatens crop
CHICAGO, May 3 (Reuters) - A big trade of 8,000 contracts in over the counter (OTC) corn in the July/December spread on Monday was tied to wet weather that is slowing U.S. corn plantings and a slowdown in export demand for U.S. corn.
"There were 8,000 July/December traded over the counter after the crop progress report was released yesterday afternoon. This allowed players to hedge their risk in a very efficient manner," said John Murphy, Atlas Commodities, a prominent company in the OTC grain business.

Open window to plant U.S. corn, wheat limited
CHICAGO, May 3 (Reuters) - The U.S. Corn Belt is getting a break from recent rains but heavy showers return on Thursday with eastern belt to see the most, keeping farmers stalled from planting corn, a forecaster said.
"There is no sight of a long stretch of open weather to cause planting progress to surge. We can hope for steady progress in the western Corn Belt and that the east will dry out a little," said Mike Palmerino, meteorologist with Telvent DTN weather service.

Average To Below Normal Temperatures Seen In W Canada's Grain Growing Areas (Source: CME)
Producers in western Canada who are anxious to start seeding grain and oilseed crops for the 2011-12 (August through July) crop year continue to keep a close watch on the weather and new maps issued by Environment Canada are calling for average to below normal temperatures and above average precipitation over the next couple of months. Updated weather outlooks issued by Environment Canada for May through July 2011 call for average readings in the eastern half of British Columbia, central Alberta, central and southern Saskatchewan and much of Manitoba. Much of Ontario was also seen experiencing average temperatures. Below normal readings were expected along the western Coast of British Columbia and much of southern Alberta. In Quebec and the most of the Maritimes, temperatures will be above normal, based on the Environment Canada weather models.
Precipitation during the May through July period was forecast by Environment Canada to be above average throughout much of British Columbia, Alberta, Saskatchewan, Manitoba and across most of Ontario. Average precipitation was anticipated across western Quebec while above normal precipitation was seen occurring in eastern Quebec and the Maritimes. Heading into August, Environment Canada forecast that temperatures across western and eastern Canada will be above normal. However, precipitation across the Canadian prairies in August was seen as being above normal. Below normal precipitation was forecast by Environment Canada for the coast line along British Columbia and the more northerly areas of Ontario and western Quebec. The eastern areas of Quebec and the Maritime province were forecast to see above normal precipitation levels.

EU Agricultural Exports Surge (Source: CME)
European Union agricultural exports jumped 21% in value to a record EUR91 billion in 2010, data published by the EU's executive arm late Tuesday showed, making the bloc a net exporter for the first time in four years. "We estimate that 75% of the increase in value of exports is driven by an increase in volume of sales, reflecting stronger demand, while 25% may be attributed to an increase in prices" said the European Commission. Exports were buoyed by a surge in demand from emerging economies such as China and Russia as a rebound in the global economy boosted world trade by 12% to a record high, the Commission said. Rising commodities prices and a weakening euro also helped the 27-nation bloc swing to an agricultural trade surplus of EUR6 billion, and it is now the world's second-largest agricultural exporter behind the U.S. "The surplus is largely due to growth in the value of exports after the contraction of trade in 2009 linked to economic crisis and the drop in commodity prices," the report said.
"Exchange rate fluctuations may also have contributed to the upsurge in exports, given the continued weakening of the euro against a number of major currencies in 2010." Exports to China and Hong Kong both posted a record-breaking 50% jump, with the value of sales to both now generating more than EUR1 billion each, the report said. But the largest absolute increase was to Russia, where the value of agricultural imports from the EU rose nearly one-third to EUR2.2 billion, making Russia the EU's second-largest market after the U.S. Severe drought in the Black Sea, which prompted both Kiev and Moscow to restrict grain exports, are also estimated to have given EU wheat exports a EUR557 million boost and cut imports by EUR270 million, the Commission said. Wheat was the EU's second-highest value export in 2010 at EUR3.4 billion.
The EU also remains by far the world's biggest agricultural importer with imports worth EUR83 billion in 2008-10, well ahead of the U.S. More than 70% of total EU imports come from developing countries, the report said.

Sugar Falls to Seven-Month Low on Thai Output Gain; Coffee, Cocoa Decline (Source: Bloomberg)
Sugar fell to the lowest since September on forecasts for increased exports from Thailand, the world’s second-largest shipper, and that China may take further steps to slow growth. Coffee and cocoa also retreated. Thailand’s sugar exports may reach a record 7 million tons this season, according to researcher F.O. Licht. The People’s Bank of China said stabilizing consumer prices and managing inflation expectations are “critical,” after policy makers from India and Brazil yesterday signaled further interest-rate increases are possible. Raw-sugar futures have plunged 34 percent this year.

Arabica coffee eases, near 34-year peak; sugar lower
LONDON, May 4 (Reuters) - ICE arabica coffee futures edged lower in early trade but remained within sight of the prior session's 34-year peak, while sugar edged lower, weighed by an improving supply outlook. Arabica coffee futures on ICE dipped in early trade with the market looking to consolidate just below the prior session's 34-year peak.

Indonesia sugar output seen at 1.77 mln tonnes-attache
WASHINGTON, May 3 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Indonesia: "In marketing year 2010/11 Indonesia is estimated to produce 1.77 million tonnes of plantation white sugar, a decrease from 1.91 million tonnes produced in the previous year. Imports of raw sugar are forecast to increase to 2.84 million tonnes compared to 2.6 million tonnes in 2009/10. This increase is attributed to lower domestic production and an increased operational demand as new Indonesian sugar refineries have come on-line.

Ivorian cocoa exports to start soon, midcrop worry
ABIDJAN, May 3 (Reuters) - Ivory Coast cocoa exports are likely to resume by Friday, but forecasts for its mid-crop harvest may be cut by a third from the expected 300,000 tonnes over security and logistics concerns in the hinterland.
Cocoa exporters said on Tuesday they were making final preparations to resume exports after resolving a row with the new government of president Alassane Ouattara last week over taxes.

Ghana poised to crush cocoa output target
ACCRA, May 3 (Reuters) - Ghana's cocoa output is running more than 50 percent higher than a year ago, easing the market impact of delayed shipments from neighbouring Ivory Coast and putting the country on track to beat its full-season target.
Purchases declared by private buyers to industry regulator Cocobod -- the best reflection of output from the world's No. 2 grower -- hit 797,847 tonnes by April 21 since the start of the season in October, according to official data seen on Tuesday.

Ivory Coast patchy rains nurture cocoa mid-crop
ABIDJAN, May 3 (Reuters) - Patchy rains punctuated by hot weather in Ivory Coast's main cocoa-growing regions last week augured well for a mid-crop seen longer than last season's, farmers and analysts said on Tuesday.
The world's top cocoa grower is gradually recovering from a bloody post-election power struggle, with exports due to restart any day and exporters forecasting a mid-crop of between 250,000 and 300,000 tonnes.

S.Africa 2011/12 sugar output fcast at 1.923 mln T
JOHANNESBURG, May 3 (Reuters) - South Africa's 2011/12 sugar output is estimated at 1.923 million tonnes, up from the previous season's output of 1.909 million tonnes, according to data from the South African Sugar Association (SASA) seen by Reuters on Tuesday.
Sugarcane crush is forecast at 16.537 million tonnes, up from the previous season's output of 16.016 million, the industry association, which represents producers and millers of the sweetener in Africa's biggest economy, said on its website.

Oil Falls for Fourth Day as U.S. Economic Recovery Slows, Stockpiles Gain (Source: Bloomberg)
Oil declined a fourth day in New York, the longest losing streak in almost eight weeks, as rising U.S. supplies and slowing economic growth stoked speculation fuel demand may weaken in the world’s biggest crude consumer. Futures dropped as much as 0.7 percent after an Energy Department report yesterday showed stockpiles rose to the highest level since October. Prices also slipped after separate reports showed a lower-than-forecast expansion in service industries and employment. Labor Department data tomorrow may show the U.S. generated fewer jobs in April than in March.

Silver Has Biggest Three-Day Drop Since 1983 (Source: Bloomberg)
Silver had its biggest three-day drop since March 1983, crude oil tumbled to a two-week low and gold, copper and grains fell after money managers made near-record bets on high commodity prices in April. Silver plummeted 19 percent since April 29 as increases in Comex margin requirements drove investors away, and oil declined after a U.S. report showed supplies surged. A drop in a gauge of U.S. service industries and lower-than-forecast jobs growth damped economic optimism. Twenty-two of 24 commodities in the Standard & Poor’s GSCI Total Return Index fell. Treasuries rose.

ETF Securities aluminium, zinc, lead ETCs list on LSE
LONDON, May 3 (Reuters) - ETF Securities listed physically backed exchange-traded commodities (ETCs) for aluminium, zinc and lead on the London Stock Exchange on Tuesday, it said.
The physically backed industrial metal ETCs, ETFS Physical Aluminium, ETFS Physical Lead and ETFS Physical Zinc follow previous listings of copper , nickel  and tin , which launched on the LSE on Dec 10, 2010.
ETF Securities said in December it expected a first-quarter listing for the products.

China aluminium plate exports up on fears of rebate cut-industry
HONG KONG, May 4 (Reuters) - Aluminium plate exports from China are expected to remain robust in the second quarter as firms rush deals on fears that Beijing may cut or cancel export rebates that make the shipments attractive when paired with high LME prices, industry sources said on Wednesday.
Exports of aluminium plates, sheets and strips, made mainly from primary aluminium, rose 73 percent rise in the first quarter of this year.

Copper demand, price to remain high-Aurubis
PIRDOP, Bulgaria, May 4 (Reuters) - Europe's biggest copper maker, Aurubis , expects overall demand for copper to remain strong this year with prices picking up at times again to $10,000 a tonne, a senior manager of the company said.
Peter Willbrandt, member of the executive board in charge of primary copper production said late on Tuesday that a recovering economy in emerging markets and Europe, and the need for reconstruction of Japan was increasing demand for copper.

Inco's Indonesian investment to rise 27 pct in 2011
JAKARTA, May 4 (Reuters) - International Nickel Indonesia (Inco)  will invest an estimated $232 million at its Sulawesi mines in 2011, up 27 percent from the previous year, the firm said on Wednesday.
The investment will include $120 million for sustaining capital, $97 million for growth capital and $15 million for health, safety and the environment, Inco said in an emailed statement to Reuters.

S.Korea seeks 1,000 T zinc ingot
SEOUL, May 4 (Reuters) - South Korea has issued a tender to buy 1,000 tonnes of zinc ingot for shipment by July 15 to the port of Incheon, state-run Public Procurement Service said.
The tender will close at 2 p.m. (0500 GMT) on May 12, the agency said on its website Tuesday.

METALS-Copper dented by concerns over China tightening
LONDON, May 4 (Reuters) - Copper dropped to a seven-week low on Wednesday as investors, worried that tightening measures in top consumer China would constrict demand, scaled back exposure to commodities.
Three-month copper  on the London Metal Exchange was untraded in official rings but was quoted at $9,195/9,200, down from Tuesday's close at $9,350 a tonne. The metal used in power and construction earlier hit its lowest since March 15 at $9,155.50 a tonne.
Signs of further plans by Beijing to draw in monetary policy, despite manufacturing data that showed its economy is cooling, have reignited worries about a knock-on to copper consumption.

PRECIOUS-Silver hits three-week low, drags down gold
LONDON, May 4 (Reuters) - Silver fell to a three-week low day on Wednesday and gold eased as precious metals came under pressure to correct after a strong rally in the last few weeks.
U.S. silver futures have lost 14 percent over the past four sessions, wiping out gains from the previous three weeks that took the price to a 31-year top just below $50 on April 25.

20110505 0942 Soy Oil & Palm Oil Related News.

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

Reuters: India's PEC tenders to buy 15,000 tonnes of palm olein oil.

Reuters Survey :
Malaysia April 2011 Crude Palm Oil
- Exports seen up 5.3% at 1.3 million tonnes from March 2011
- Stocks seen up 9% at 1.76 million tonnes from March 2011
- Output seen up 8.8% at 1.54 million tonnes from March 2011 

Soybeans (Source: CME)
US soybean futures retreat for the third-consecutive day, succumbing to the day's broad commodity selling. The theme of large investors reducing risk in commodities kept pressure on prices, with slower export demand and the threat of some intended planting of corn shifting to soybeans aiding the lower tone, analysts said. Soybeans for July delivery dropped 0.9% to $13.52/bushel.

Soybean Meal/Oil (Source: CME)
US soy-product futures fell in unison with soybeans, succumbing to widespread investment-fund selling across the commodity sector. Soymeal and soyoil weren't immune to the selling, with weakness in crude-oil futures attracting sellers to soyoil as well. Crude influences soyoil due to its use in making biofuels. CBOT July soyoil settled 0.9% lower at 57.17c/pound and July soymeal ended 0.7% lower at $352.50/short ton.

Palm oil off 2-wk low on supply build up, external markets
KUALA LUMPUR, May 4 (Reuters) - Malaysian palm oil futures ended off two-week lows on growing stocks and reduced risk taking, although higher crude oil limited losses. "The market has been dragged lower by improving output, mainly in Malaysia but also in Indonesia," said Standard Chartered analyst Abah Ofon in a note to clients.

Egypt oilseed output seen up in 2011/12-attache
WASHINGTON, May 3 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Egypt: "Egyptian oilseed production forecast to increase in 2011/2012 as farmers plant more cotton. Production of both cotton and soybean meal and oil is also forecast to increase as a result of the expected increase in the production of cotton and imports of soybeans.

Oil World raises Brazilian soybean crop forecast
HAMBURG, May 3 (Reuters) - Hamburg-based oilseeds analyst Oil World on Tuesday raised its forecast of Brazil's 2011 soybean harvest by 0.5 million tonnes as crop yields were better than expected despite recent unfavourable weather.
Oil World now forecasts Brazil's 2011 soybean crop at a new record 72.5 million tonnes compared with 72 million tonnes it forecast in April and 70.5 million tonnes expected in March. Brazil harvested 68.6 million tonnes in 2010.

India backs off talk of cutting soyoil imports
BUENOS AIRES, May 3 (Reuters) - India, the top buyer of Argentina's soyoil, is not planning to reduce orders despite warnings Argentine import curbs on Indian goods could hit trade in the edible oil, an Indian official said on Tuesday.
India replaced China as the No. 1 importer of Argentine soyoil a year ago when Beijing halted imports of the soybean product in retaliation for Argentine import curbs on Chinese manufactured goods.