Tuesday, May 10, 2011

20110510 1817 FCPO EOD Daily Chart Study.

FCPO closed : 3258, changed : +20 points, volume : lower.
Bollinger band reading : pullback correction downside biased.
MACD Histrogram : recovering, seller taking profit.
Support : 3250, 3200, 3150, 3100, 3070 level.
Resistance : 3250, 3270, 3300, 3350, 3420 level.
Comment :
FCPO closed recorded small gain with decreasing volume transacted while soy oil overnight closed higher and currently trading firmer in tandem with as most commodities price that recovering higher after last week severely slump.
MPOB reported better than estimated April 2011 data with higher export, lower stock and output level while export data for the period of 1~10 May 2011 by ITS up 16.5% and SGS down 1% respectively.
Despite the better than estimated MPOB data, stock level still stood at 6 month high kept today's gain limited.
Daily chart formed an up doji bar candle with upper shadow closed nearer to middle Bollinger band level after market opened little higher and surged upward tested resistance level near middle Bollinger band before ease lower to closed off the high of the day.
Techical reading suggesting a pullback correction downside biased market development testing support and resistance level with today candle touched the downward plotted trendline.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with larger cut loss and profit target.

20110510 1728 FKLI EOD Daily Chart Study.

FKLI closed : 1520.5 changed : +3 points, volume : lower.
Bollinger band reading : side way range bound little downside biased.
MACD Histrogram : recovering, seller taking profit.
Support : 1515, 1500, 1485, 1470 level.
Resistance : 1530, 1540, 1550, 1565 level.
Comment :
FKLI closed recorded small gain with decreasing volume transacted doing about 3 points discount compare to cash market that also recorded gain while regional markets trading mostly higher after China reported a more than estimated $11.4 billion trade surplus for the month of April.
Daily chart formed an up doji bar candle with longer lower shadow closed near middle Bollinger band level after market opened 2 ticks higher,  traded lower tested little below support level and edge up higher before ease down slightly to closed near the high of the day.
Technical reading suggesting a side way range bound little downside biased 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.

20110510 1547 Global Commodities Related News.

China April soy imports pick up vs March, but down 7.5 pct on yr
BEIJING, May 10 (Reuters) - China, the world's largest soy buyer, imported 3.88 million tonnes of soybeans in April, up 10.5 percent from 3.51 million tonnes in March, figures from the General Administration of Customs of China showed on Tuesday.
But April imports fell 7.4 percent from a year-ago period when China imported 4.19 million tonnes of the oilseed, which is crushed into edible oil and animal feed ingredients.

China continues state rapeseed oil sales amid harvest
BEIJING, May 10 (Reuters) - China sold 89,719 tonnes of rapeseed oil from state reserves on Tuesday even as the new harvest was set to unleash a large volume on the market later in the month, which could prompt Beijing to suspend the regular auctions.
China has held auctions twice a month since late last year in an effort to ease food inflation.

Argentina to approve 2.5 mln T corn exports-official
BUENOS AIRES, May 9 (Reuters) - Argentina will authorize the export of 2.5 million tonnes of 2010/11 corn this week, in addition to 8.5 million tonnes previously authorized, Deputy Agriculture Secretary Oscar Solis said on Monday.
Argentina is the world's No. 2 corn exporter after the United States but the government restricts exports of corn and wheat to ensure domestic supply as it grapples with inflation,  estimated by private economists at about 25 percent per year.

Upward revision in U.S. old-crop soy stocks expected
CHICAGO, May 9 (Reuters) - The government this week is expected to increase its forecast of the U.S. soybean supply at summer's end, due to robust South American production which has slowed U.S. export sales.
The estimate of U.S. soybean ending stocks at the end of the 2010/11 marketing year Aug. 31 is expected to hit its highest level so far this year in the U.S. Department of Agriculture's May supply/demand report Wednesday morning.

U.S. wheat continues to rebound on weather worries
SYDNEY, May 10 (Reuters) - U.S. wheat futures continued to recover from last week's sell-off in early Asian trade on Tuesday as worries about dry weather impacting on U.S. winter wheat and European crops lifted prices.
Wheat surged 4 percent on Monday, its biggest gain in more than a month, as hot weather baked the bread baskets of the United States and Europe.

Drought, floods curtail U.S. wheat expectations
KANSAS CITY, Mo., May 9 (Reuters) - Drought in the southern U.S. Plains is expected to cut U.S. winter wheat production this year to its lowest level in five years at a time when crop prospects in parts of Europe are also being dimmed by dry weather.
The U.S. Department of Agriculture will issue its first production estimate for this year's winter wheat crop on Wednesday morning. Analysts projected total U.S. winter wheat production of 1.395 billion bushels, down 6 percent from 2010.

Rain idles Canada farmers, planting 3 pct done
WINNIPEG, Manitoba, May 9 (Reuters) - Rain on Monday and Tuesday in much of flooded Saskatchewan and Manitoba will keep farmers there idle this week, with planting already far behind normal progress, a Canadian Wheat Board official said Monday.
Farmers on the Canadian Prairies, who produce most of the country's grains and canola, have planted just 3 percent of their crops at a time when they're usually 38 percent finished, said Stuart McMillan, crop and weather analyst at the Wheat Board.

Russia could prolong full grain export ban
PARIS/CHICAGO, May 9 (Reuters) - Russia's embargo on grain exports is due to expire on July 1, but traders on international markets think Moscow will likely play it safe and wait until end-September for a full lifting of the ban.
However, if crops develop well it may release some wheat in July to relieve hefty stocks in its south.

Corn plantings seen 31 pct done, soybeans 7 pct
CHICAGO, May 9 (Reuters) - Some dry weather in western stretches of the U.S. Corn Belt allowed farmers in those areas to plant their corn and soybean crops last week, but damp conditions kept farmers east of the Mississippi River on the sidelines, industry analysts said.
The pace of both corn and soybean planting was still well behind schedule as the deadline for optimal corn seeding approached, analysts surveyed by Reuters said on Monday morning.

End-users face another year of tight US corn stocks
CHICAGO, May 9 (Reuters) - Producers of food and biofuel may face another year of tight U.S. corn supplies as a very wet spring has delayed plantings in the Corn Belt and threatened to reduce the harvest needed to replenish nearly empty storage bins this fall.
U.S. corn stocks are forecast to dwindle this summer to their lowest levels since the 1930s, and analysts polled by Reuters expect supplies to rise next year by just 20 percent -- hardly a comfort zone for end-users.

Indonesia aims for sugar self sufficiency by 2014
JAKARTA, May 9 (Reuters) - Indonesia's white sugar production will rise 17 percent this year, as Southeast Asia's largest sugar consumer targets self-sufficiency by 2014, an industry body said on Monday.
Plantation expansions and improving weather conditions will help boost output, with white sugar production seen at 2.7 million tonnes in 2011 versus 2.3 million tonnes last year, Bambang Priyono, secretary at the Indonesian Sugar Council (DGI) told Reuters.

Rain boosts Ivorian cocoa crop, roads a worry
ABIDJAN, May 9 (Reuters) - Rain mixed with sun in Ivory Coast's cocoa growing regions last week will pave the way to a bumper mid-crop, but too much more rain could trigger disease and damage roads, farmers and analysts said on Monday.
The world's top cocoa grower resumed exports over the weekend after a roughly three-month halt cause by a violent post-election power struggle, and the government expects the full-year crop to hold at 1.3 million tonnes despite the turmoil.

Vietnam coffee growers invest to boost yields on firm prices
HANOI, May 9 (Reuters) - Coffee farmers in Vietnam are ploughing gains from steadily rising prices into fertiliser and water pumps to incrementally lift yields, betting the global market will remain in their favour for years before rivals can increase supply.
The world's top robusta coffee producer enjoyed a 107 percent surge in prices to 50 million dong ($2,428) a tonne on May 4 against the start of 2010, while output by No. 2 grower Indonesia could drop 30 percent on heavy rains linked to the La Nina weather pattern.

Record coffee premium makes for bitter java
NEW YORK, May 9 (Reuters) - With the price differential between high-quality arabica coffee prices in New York and lower grade robusta beans in London at its widest ever, how will you be able to tell that the spread has maxed out?
Just wake up and smell the coffee. If its losing its full-bodied aroma that should mean more robustas are finding their way into your favorite blend, which should indicate strengthening demand for the variety usually snubbed by roasters and coffee snobs and less demand for gourmet beans.

Brazil to sell 2009 public coffee stocks soon
BRASILIA, May 9 (Reuters) - Brazil will start piecemeal sales of public arabica coffee stocks totaling 1.55 million 60-kg bags of coffee which it acquired from growers in 2009, a senior agriculture official told Reuters.
Secretary for production, Manoel Bertone, told Reuters the stocks would be made available once small residual public stocks of 2002 coffee had been auctioned off, meaning the beans could reach the market in as little as a month, he said.

Copper falls on euro debt worry; key Chinese data awaited
SINGAPORE, May 10 (Reuters) - Copper continued to recover on Tuesday from last week's commodity rout, although uncertainty over key inflation data from China and worries about euro zone debt could threaten the rebound.
"It seems that we are seeing a continued technical rebound from last week's selloff," said Jinhui Futures deputy general manager Ling Yu Hui.   

China April copper imports sink nearly 14 pct as stocks used
SHANGHAI, May 10 (Reuters) - China imported 262,676 tonnes of unwrought copper in April, a nearly 14 percent decline from March, Customs data showed on Tuesday, as the world's biggest consumer of the metal shunned overseas supplies in favour of local producers and stockpiles.
The April import volume, which includes refined copper, anode, alloys and semi-finished products, was the second-lowest since January 2009, according to Customs data compiled by Reuters. Imports were even lower in February, but that was a shorter month with a week-long holiday.

Mexican scrap metal thefts worsen-industry official
MEXICO CITY, May 9 (Reuters) - Armed bandits stole 17,500 tons of Mexican scrap metal in the first three months of the year, local steelmakers said on Monday, describing a worsening theft problem in the industry.
More scrap steel could be stolen this year than last when between 45,000 and 50,000 tons of the product were taken, said Raul Gutierrez, president of Mexico's National Chamber of the Iron and Steel Industry (Canacero).

China April iron ore imports dip 11.1 pct to 52.9 mln T
BEIJING, May 10 (Reuters) - China imported 52.88 million tonnes of iron ore in April, down 11.1 percent from the previous month as supplies tightened, official data from China's customs authority showed.
"The main point to make is that this was supply-driven and not demand-driven -- there was just not enough material available," said Graeme Train, steel analyst with Macquarie Securities in Shanghai.

Japan Q2 crude steel output seen down 2.8% despite quake impact
TOKYO, May 10 (Reuters) - Japan's crude steel output will likely dip only slightly in April-June despite the impact of the March earthquake as higher demand for construction steel will partially offset a plunge in demand from the key auto sector, the government said on Tuesday.
A poll by the trade ministry of about 60 big Japanese steelmakers showed the companies plan to produce 26.89 million tonnes of crude steel in April-June, down 2.8 percent from the previous quarter's 27.68 million tonnes. 

Gold inches lower after oil margin hike; Greece fear supports
SINGAPORE, May 10 (Reuters) - Gold prices softened slightly on Tuesday, as sentiment was dampened by a margin hike in U.S. crude futures, while growing concerns over Greece's debt crisis are expected to limit the downside.
"The margin hike decreases the bullish sentiment in the commodities market," said Ong Yi Ling, an analyst at Phillip Futures, adding that gold could move towards $1,500.   

U.S. crude falls more than 2 pct after margin hike
SINGAPORE, May 10 (Reuters) - U.S. crude oil futures fell more than 2 percent on Tuesday after the CME Group raised margins on benchmark West Texas Intermediate by 25 percent.
The move comes after a volatile, frenzied week of oil trading that saw U.S. crude prices fall from over $114 a barrel -- the highest level since 2008 -- to $94 a barrel.

Oil retreats on margin hike; euro slips vs yen
MELBOURNE, May 10 (Reuters) - Oil prices slid after a 25 percent hike in trading margins for U.S. crude spread caution among traders about volatile commodity prices, while Greek woes pulled the euro down to a six-week low against the yen on Tuesday.
"Having high margin requirements makes it more difficult for speculative traders to enter the market, so naturally that will cause less speculative activity in oil markets," said Ben Westmore, commodity economist at National Australia Bank. 

Australia Newcastle coal exports fall over 4 percent
SINGAPORE, May 10 (Reuters) - Coal shipments from Australia's Newcastle port, which ships mostly thermal coal used in power plants, fell more than 4 percent in the week ending May 9, the Newcastle Port Corporation said on Tuesday.
Exports from the eastern coast port were 2.140 million tonnes in the week to May 9, down from 2.232 million the previous week, Newcastle Port Corporation said on its website.

20110510 1237 Global Market & Commodities Related News.

GLOBAL MARKETS: New fears on Greece dent euro; commodities bounce
NEW YORK, May 9 (Reuters) -  New-found worries that Greece may be forced to restructure its debt brought the euro to around a three-week low on Monday, while U.S. stocks rose as  resource shares gained alongside commodities after last week's rout.
The euro volatility "confirms the whole market skittishness about the viability of the peripheral economies," said Boris Schlossberg, head of research at GFT Forex. "More draconian measures will be necessary to stabilize the situation with a broader solution as Ireland and Portugal will want more favorable terms if Greece gets them."

OIL: U.S. crude falls more than 2 pct after margin hike
SINGAPORE, May 10 (Reuters) - U.S. crude oil futures fell more than 2 percent on Tuesday after the CME Group raised margins on benchmark West Texas Intermediate by 25 percent.
The move comes after a volatile, frenzied week of oil trading that saw U.S. crude prices fall from over $114 a barrel -- the highest level since 2008 -- to $94 a barrel.

Fuel cost drop bolsters Mideast crude ship rates
LONDON, May 9 (Reuters) - Crude oil tanker rates were steady on Monday, helped by lower bunker fuel costs although earnings continued to struggle to cover operating costs.
The world's benchmark Very Large Crude Carrier (VLCC) export route from the Middle East Gulf (MEG) to Japan  reached W48.59 in the Worldscale measure of freight rates, or $4,585 a day when translated into average earnings, from W48.62 or $585 a day on Friday and W49.06 or $693 a day last Tuesday.

US crude stocks seen up on higher imports
BANGALORE/NEW YORK, May 9 (Reuters) - U.S. crude oil stockpiles rose last week as higher imports offset refinery demand, a preliminary Reuters poll ahead of weekly industry and government reports showed on Monday.
On average, crude stocks were forecast up 1.3 million barrels in the week to May 6, with eight of nine analysts projecting a rise and one calling for an unchanged reading from the previous week.

NATURAL GAS: Natural gas ends down for sixth straight day
NEW YORK, May 9 (Reuters) - Front-month U.S. natural gas futures ended lower for a sixth straight day on Monday, as bearish technicals after last week's steep slide and mild weather in consuming regions this week weighed on prices.
"There's some decent weather around, and producers still seem like they're pumping. The market is going to struggle until the demand side catches up," said Steve Platt, analyst at Archer Financial, a Chicago-based brokerage firm.

EUROCOAL : Euro Coal-Commodities bounce leaves coal sidelined
LONDON, May 9 (Reuters) - Coal prices largely ignored the rebound in oil and other commodity markets on Monday and ended the day little changed with few trades reported.
"There are few of the usual bigger players in the market today, not many bids or offers around, all the excitement is in the other markets again," one European trader said.

COMMODITIES: Oil, silver snap back from rout, lifting others
NEW YORK, May 9 (Reuters) - Commodity markets roared back to life on Monday, with oil and silver leading the charge as investors bet last week's biggest slump since 2008 was overdone, and a falling dollar adding fuel to the rebound.
"I'm not surprised that we rebounded. It's the velocity of the rebound that caught me by surprise," said Phil Flynn, oil analyst at PFGBest Research in Chicago. "I think the concerns over refinery issues added to the frenzy, on top of the dollar/euro type of play, that has been the main driver."

20110510 1014 Global Economic Related News.

Taiwan: Exports rise more than estimated, reaching a record
Taiwan’s export growth rose faster than estimated in April, taking the monthly value of overseas shipments to a record and bolstering the case for higher borrowing costs. Shipments abroad gained 24.6% from a year earlier, compared with 16.7% in March, the Ministry of Finance said. The median estimate in a Bloomberg News survey of 17 economists was for an 18% advance. The value of exports rose to USD27.32bn for the month. Imports rose 25.7% for a trade surplus of USD2.96bn. (Bloomberg)

China: Lowest BRIC inflation shifts policy focus to Yuan
Derivative contracts are signaling that China’s policy makers will slow interest-rate increases as inflation cools and strengthen the Yuan to curb import costs. Interest-rate swaps suggest the deposit rate will rise half a percentage point in the coming year, compared with four quarter-point increases the past seven months. Twelve-month non- deliverable forwards for the Yuan are trading at 6.3520 per USD, a 2.3% premium to the onshore spot rate. The gap was 2% at the end of the last quarter. (Bloomberg)

Australia: To make ‘substantial’ budget cuts, Swan says
Australia will make "substantial" spending cuts in the budget after a rising currency, the nation’s costliest natural disasters and Japan’s earthquake crimped revenue, Treasurer Wayne Swan said. Swan, who delivers the budget to Parliament, said the deficit in the government’s finances will widen in the fiscal year ending 30 June before increased mining revenue and an improving economy help bring about a surplus in 2012-2013. (Bloomberg)

Greece: Debt rating cut to B by S&P on restructuring concerns. Another cut would make Greece the lowest-rated country in Europe as the current reduction, the fourth by S&P since April 2010, left it even with Belarus. The yield on Greek 10-year bonds rose 21 basis points to 15.7%, more than twice the level of a year ago when Greece accepted an international bailout. (Source: Bloomberg)

EU: German exports surged to record in march, boosting growth
German exports surged in March to the highest monthly value ever recorded, boosting growth in Europe’s largest economy. Exports, adjusted for work days and seasonal changes, jumped 7.3% from February, when they gained 2.8%, the Federal Statistics Office said. Economists had forecast a 1.1% increase, according to the median of 10 estimates in a Bloomberg News survey. Exports were worth EUR 98.3bn (USD 141.4bn) in March, the most since records began in 1950, the statistics office said. (Bloomberg)

EU: Holds No. 1 spot as EU shows resolve on Greece debt
European Union leaders are showing their resolve in keeping the euro region together, agreeing in an unannounced meeting on 6 May to review the terms of the EUR 110bn (USD 158bn) lifeline Greece received last year. The euro tumbled 3.45% in the final two days of last week, the biggest back-to-back loss since 2008, as the European Central Bank signaled it is in no rush to raise interest rates. EU officials denied the report and said Greece will need more aid. Standard & Poor’s reduced the nation’s credit rating by two level today as investors drove yields on its two-year notes to more than 25%. (Bloomberg)

U.K: House prices fell the most in seven months in April as signs of a fading economic recovery and tighter lending conditions dented property demand, Halifax reported. Values fell 1.4% MoM from March to an average GBP160,395 (USD 262,839), Halifax, the mortgage unit of Lloyds Banking Group Plc said in a statement. From a year earlier, prices were down 4.9% YoY. (Source: Bloomberg)

US:Fed says household debt increases 0.3% during first quarter
US households expanded their debt last quarter for the first time in more than two years as mortgage balances rose, according to a survey by the Federal Reserve Bank of New York. Consumer indebtedness rose 0.3%, or USD 33bn, to USD 11.5trn at the end of March from 31 Dec, according to a quarterly report on household debt and credit released. Households have slashed debt by USD 1.03trn, or 8.2%, since it peaked in the third quarter of 2008 as the financial crisis was unfolding. (Bloomberg)

20110510 1013 Malaysia Corporate Related News.

KLCI chart reading : 
pullback correction downside biased.

Sugar now RM2.30 per kg
The price of sugar will go up by RM0.20 to RM2.30 per kg from today. Despite the increase for both coarse and fine sugar, the price is still lower than that in neighbouring Asean countries where the average price is RM3 per kg. The Domestic Trade, Cooperatives and Consumerism Ministry said this is part of the government’s move to do away with subsidies and in this case save RM116.6m. (New Straits Times)

Berjaya Corp selling 40% stake in BSompo for RM496m
Berjaya Corp (BCorp) has set a price of RM496m for its 40% stake in Berjaya Sompo Insurance (BSompo) which is being sold to Sompo Japan Asia Holdings (SJAH). BCorp’s wholly-owned unit Berjaya Capital (BCap) had entered into a share purchase agreement with SJAH to dispose of 47.2m shares in the insurer to the latter. Based on the price of RM496m for the 40% stake, BSompo is valued at RM1.24bn, translating to 3.3x P/BV. (FinancialDaily)

AP holders under scrutiny
Several government agencies are understood to have conducted joint raids on automotive approved permit (AP) holders sometime last week, according to industry sources. The agencies, it seems, were looking for companies that had not paid taxes and under-declared the values of the cars being imported, among other things. While some players said the raids impacted both large and small players, another said that so far only the smaller open AP holders are believed to be scrutinized. The government has now stated that the AP system will be abolished for sure by end-2015. (FinancialDaily)

Genting Singapore sells entire interest in Rank to Guoco
Genting Singapore (GENS) is selling its entire 11.03% stake in Rank Group to Guoco Group, which is controlled by Tan Sri Quek Leng Chan, for GBP64.6m (RM316.4m), or GBP1.50 per share (RM7.35 per share). The sale will effectively see the closing of a chapter on GENS’ gambling business in the UK. The price of GBP1.50 per share represents a 0.8% premium to Rank’s closing price and valued the entire Rank group at GBP586m. (FinanciaDaily)

Dialog, Roc Oil to bag oilfield jobs?
Dialog Group and its Australian partner Roc Oil are said to be on the verge of bagging the marginal oilfield projects from Petronas for Balai and Bentara fields, located off the cost of Sarawak. The two companies are in the process of finalizing the risk service contract (RSC) with Petronas. (FinancialDaily)

Suit against Maybank to be heard 21 Sept
A RM1.28bn suit filed by a developer against Maybank over the appointment of two individuals as the receivers and administrators for the company’s takeover will be heard at the High Court on 21 and 22 Sept. On 21 March, Bistari Land SB filed the suit against the bank and two of the bank’s agents, claiming that the appointment of the two as the receiver and administrators for the company’s takeover by the bank had caused losses to it. (Malaysian Reserve)

MAS: Firefly not imposing fuel surcharge. FlyFirefly Sdn Bhd will not impose any fuel surcharge and will continue to absorb the increases in fuel costs. (Source: The Edge Financial Daily)

O&G: Govt hopes Petronas will extend contract term of vendor programme. The government is hopeful that Petronas can enhance its Vendor Development Programme (VDP) by exceeding the current contract term of five years in an effort to realise the full capabilities of local companies. The current term was not enough as most Malaysian oil and gas companies would need a longer time frame in developing their technical know-how. (Source: Business Times)

E&E: Will bounce back as main contributor. Electrical and electronic (E&E) products from Malaysia will return as the main contributor of export earnings as the portfolio expands to include products in the nascent solar industry. Major investments in the industry are expected to come on board by next year or 2013, extending demand for devices and products under the E&E sector. (Source: Business Times)

Credit rating: S&P tipped to take substantial share in RAM by year-end. International rating agency Standard & Poor's (S&P) is expected to take a stake in RAM Holdings Bhd before the year-end, a move that will help open up new markets for the latter. (Source: Business Times) 

20110510 0922 Global Market Related News.

 DJIA chart reading : correction range bound upside biased.

Hang Seng chart reading : pullback correction downside biased.

OECD indicator flags improved outlook in China, U.S.
PARIS, May 9 (Reuters) - The growth outlook in major industrialised nations is diverging with activity improving in North America, China and Russia and moderating in most European countries, the OECD's leading indicator for March showed on Monday.
The Paris-based Organisation for Economic Co-operation and Development (OECD) said its composite leading indicator for member countries rose to 103.2 points in March from 103.0 in February, well above a long-term average of 100.

U.S., China Pledge to Address Currency, Financial Issues (Source: Bloomberg)
U.S. Treasury Secretary Timothy F. Geithner and Chinese Vice Premier Wang Qishan pledged today to tackle currency, financial services and trade conflicts between the world’s two biggest economies. At the start of the two-day Strategic and Economic Dialogue, Geithner said China has been making progress “towards a more flexible exchange rate” and weaning its economy off a dependence on exports. He also called for China to overhaul its financial system and said the U.S. will work to improve its fiscal outlook. Chinese Commerce Minister Chen Deming told reporters the yuan exchange rate will be discussed with U.S. officials this afternoon.

U.S. Will Urge China to Boost Interest Rates as Talks Start (Source: Bloomberg)
Treasury Secretary Timothy F. Geithner will urge China to allow higher interest rates when he meets with Chinese leaders this week, as the U.S. extends its push for a stronger yuan. Geithner will say China should relax controls on the financial system and give foreign banks and insurers more access, said David Loevinger, the Treasury Department’s senior coordinator for China. Officials from both nations are meeting in Washington today and tomorrow as part of the annual Strategic and Economic Dialogue.

Household Debt in U.S. Climbed 0.3% in First Quarter on Mortgage Balances (Source: Bloomberg)
U.S. households expanded their debt last quarter for the first time in more than two years as mortgage balances rose, according to a survey by the Federal Reserve Bank of New York. Consumer indebtedness rose 0.3 percent, or $33 billion, to $11.5 trillion at the end of March from Dec. 31, according to a quarterly report on household debt and credit released today. Households have slashed debt by $1.03 trillion, or 8.2 percent, since it peaked in the third quarter of 2008 as the financial crisis was unfolding.

U.S. Stocks Advance Amid Commodity Rebound as McDonald’s Gains on Sales (Source: Bloomberg)
U.S. stocks advanced, sending the Standard & Poor’s 500 Index higher for a second straight day, as commodity prices rebounded from the biggest weekly drop since 2008 and McDonald’s Corp. (MCD) rallied after sales topped estimates.

Hiring by U.S. companies hits 5-year high in April
WASHINGTON, May 6 (Reuters) - U.S. companies created jobs at the fastest pace in five years in April, pointing to underlying strength in the economy even as the jobless rate rose to 9.0 percent.
Private sector hiring, including a big jump at retailers, boosted overall nonfarm payrolls by 244,000, the largest increase in 11 months, the Labor Department said on Friday. Economists had expected a gain of only 186,000.

Oil Stocks Cheap as Tax No Threat to Profits (Source: Bloomberg)
U.S. oil companies’ profits have grown so fast that they’ve become the cheapest equities in the Standard & Poor’s 500 Index, just as the debate about taxing crude producers heats up. Energy suppliers in the S&P 500 have earned $481.1 billion since 2006, more than last year’s gross domestic product of Argentina, according to data compiled by Bloomberg. The 41 drillers, refiners and oilfield service providers may generate another $134.8 billion in 2011, based on analyst estimates that jumped 8.5 percent in April. The growth reduced valuations to 11.5 times projected income from 13.7 in March.

Japanese Stocks Gain First Day in Three on Higher Oil Prices; Inpex Rises (Source: Bloomberg)
Japanese stocks gained for the first time in three days as commodity prices advanced, boosting confidence about the strength of the global economy.

Yen Strengthens on Renewed Speculation Europe’s Debt Crisis Will Worsen (Source: Bloomberg)
The yen gained on renewed concern Europe’s debt crisis will worsen. Japan’s currency climbed to 115.08 yen per euro as of 9:07 a.m in Tokyo from 115.43 in New York yesterday. It rose to 80.23 yen per dollar from 80.36.

Euro Trades Near 6-Week Low as Rating Cut Renews Debt Concern (Source: Bloomberg)
The euro fell toward a six-week low against the yen after Standard & Poor’s cut Greece’s credit rating, renewing concern the region’s debt crisis is escalating.

Trichet Says Global Central Bankers Are United in Fight Against Inflation (Source: Bloomberg)
European Central Bank President Jean- Claude Trichet said the world’s central bankers are united in fighting inflation fueled by surging commodity prices and fast- growing emerging economies.

German Exports Surged to Record $141.4 Billion in March, Boosting Growth (Source: Bloomberg)
German exports surged in March to the highest monthly value ever recorded, boosting growth in Europe’s largest economy.

Irish to Avoid ‘Doomsday,’ Central Bank Chief Says as Rescheduling Raised (Source: Bloomberg)
Irish central bank Governor Patrick Honohan said the country will avoid economic “doomsday,” as a government minister and prominent professor suggested the nation should reschedule debts from its as much as 85 billion-euro ($121 billion) bailout.

Irish Consumer Confidence Falls on Rising Bank Bailout Costs, Job Losses (Source: Bloomberg)
Irish consumer confidence fell in April as companies including the state-owned postal service and Allied Irish Banks Plc (ALBK) said they plan to cut jobs and officials said the cost to bail out the nation’s banks rose. The consumer sentiment index declined to 57.9 from 59.5 in March, KBC Ireland and the Economic & Social Research Institute in Dublin said today in an e-mailed statement.

U.K. House Prices Decline 1.4% in April From Previous Month, Halifax Says (Source: Bloomberg)
U.K. house prices fell the most in seven months in April as signs of a fading economic recovery and tighter lending conditions dented property demand, Halifax reported today. Values fell 1.4 percent from March to an average 160,395 pounds ($262,839), Halifax, the mortgage unit of Lloyds Banking Group Plc (LLOY) said in a statement in London today. From a year earlier, prices were down 4.9 percent.

FOREX-Euro bounces from 3-week low; risks further shakeout
LONDON, May 9 (Reuters) - The euro bounced on Monday as Asian and Middle East sovereign investors scooped it up after last week's selloff, although bloated long positions and euro zone debt worries pointed to downside risks.
Technical indicators also suggested the euro could ease, although a rebound in some commodities after their rout last week helped risk appetite and ensured the single currency stayed well above a three-week low hit against the dollar last week.

20110510 0920 Global Commodities Related News.

Corn (Source: CME)
US corn futures finish sharply higher in a rebound from last week's 9% fall. Surging prices for crude oil and precious metals and weakness in the dollar supported the recovery as commodity funds re-entered the markets to buy, traders say. Funds bought an estimated 13,000 corn contracts at CBOT, a moderate amount, they note. Strength in the markets "marks the end of the correction in commodities in general," says Bill Gentry, analyst at Risk Management Commodities. CBOT July corn surges 21 1/4c to $7.07 1/2 a bushel.

Wheat (Source: CME)
US wheat futures soar more than 4% on increasing concerns about global output. Searing temperatures add stress to Kansas' wheat crop after months of drought. Farmers are "going to have a lot more abandonment than people realize," warns Sid Love, analyst for Kropf & Love Consulting. France and Germany also struggle with dryness. An 11.6% rally in Paris wheat prices helped fuel gains. Surging crude oil adds spillover support, as commodities recover from last week's slide. CBOT July wheat climbs 31c to $7.90 1/2 a bushel; KCBT July gains 40 1/2c to $9.14 1/2; MGE July rallies 41c to $9.44 3/4.

Rice (Source: CME)
US rice futures closed lower, bucking a trend of strong gains in wheat, corn and soybeans. The decline erases Friday's 1.5% rally and continues the weaker trend in rice. The market slipped almost 4% last week amid broad commodity selling. Traders today will review USDA's weekly crop progress report for an update on planting. It seems concerns about planting delays due to rains in the southern US have been priced into the market, an analyst notes. CBOT July rice drops 22 1/2c to $14.12 1/2 per hundredweight.

Commodities, stocks firm after selloff; euro shaky
HONG KONG, May 9 (Reuters) - Stocks and commodities rose from last week's lows after solid U.S. payrolls data showed the economic recovery in the world's biggest economy was picking up momentum, though big gains may be limited as some sellers may be waiting for a sharper bounce to take profits. "Certainly Friday felt like the end of the panic liquidation," said a metals trader at an Australian bank in Sydney.

What do analysts say about the commodities crash?
BANGALORE, May 9 (Reuters) - After commodities investors rushed for exits last week, analysts at different brokerages are taking stock of what led to the frenzy and what lies ahead.
The sharp fall on Thursday highlighted concerns that have bothered market participants for some time, including the negative impact on consumption of high commodities prices, especially for oil; a slowing in the pace of U.S. economic recovery; and relative softness in China's import demand for key commodities, such as copper and soybeans, analysts at Barclays Capital said in a note to clients. 

Commodities Trading Is Banking’s New Battleground: Matthew Lynn (Source: Bloomberg)
Forget bonuses. Don’t worry about bailouts. That’s all history. The battleground that matters most for the banking and finance industry right now is the profits it is making from commodities trading. Over the last few days, prices have been bouncing all over the place, a reminder for everyone of just how unstable the market in food and raw materials has become. Now there is a backlash building. The banks should take note of that. If they don’t, they could easily be driven out of this business -- and they will only have themselves to blame.

ANALYSIS-Commodity scare may reinforce, not reflect growth
LONDON, May 6 (Reuters) - This week's commodity market fright at the cresting of world economic growth looks oddly panicky and easier oil and raw materials prices may themselves reinforce a more benign outlook than the market scare suggests.
For all that speculative ebb and flow is inherent in most financial markets, the sudden plunge in energy and metals prices was seeded by series of soft business surveys from the United States, China and elsewhere showing sky-high crude prices were starting to brake buoyant business confidence and activity.

U.S. wheat up 2 pct, corn rises on weather concerns
SINGAPORE, May 9 (Reuters) - Chicago wheat rose more than 2 percent, while corn added 1 percent, with both markets recovering from last week's over one-month lows as investors bought back grains on concerns over unfriendly crop weather in the United States and Europe."We are looking at the impact of weather on European crop and the picture of U.S. winter wheat doesn't look too good," said Abah Ofon, an analyst with Standard Chartered Bank in Singapore. "We get a weaker dollar, then we tend to see some compensation in commodity prices."

Philippine Q1 farm output likely up 4 pct y/y-source
MANILA, May 9 (Reuters) - Philippine farm output likely grew about 4 percent in the March quarter from a year earlier as the main rice crop rebounded strongly from last year's slump, a senior agriculture official said on Monday.
Preliminary estimates showed unmilled rice output rose 15.6 percent from a year earlier, the official, who spoke on condition of anonymity, told Reuters.

Informa sees US winter wheat crop at 1.441 bln bu
CHICAGO, May 6 (Reuters) - Analytical firm Informa Economics estimated U.S. winter wheat production for 2011 at 1.441 billion bushels, down from the firm's March 18 forecast of 1.496 billion, trade sources said Friday.
By class, Informa pegged U.S. production of hard red winter wheat at 792 million bushels, soft red winter wheat at 418 million and winter white wheat at 232 million.

Dry week raises worry about German grain crops 
HAMBURG, May 6 (Reuters) - Another hot, dry week in Germany is raising concerns about possible damage to crop yields in the European Union's second-largest wheat producer and largest rapeseed grower, analysts said on Friday.
Germany's national weather service said only 38 percent of average monthly rain fell in April. Showers are forecast next week, but this may be too late for rapeseed, crop watchers said.

Climate change has spurred food prices-study
LONDON, May 6 (Reuters) - Climate change cut global wheat and corn output by more than 3 percent over the past three decades compared to growth projections without a rise in temperatures, a study found on Friday.
The impacts translated into up to 20 percent higher average commodity prices, before accounting for other factors, according to the paper published in the journal Science.

Dry weather prompts more irrigation curbs in France
PARIS, May 6 (Reuters) - A growing number of French local authorities are introducing restrictions on irrigation of crops after dry weather left water reserves below normal levels.
France is expecting warm weather and only localised showers in the coming week, offering little relief to farmland parched by one of hottest and driest Aprils on record, weather service Meteo France said on Thursday.

Sugar, coffee rise as commodities rebound
LONDON, May 9 (Reuters) -  ICE sugar and coffee bounced higher on Monday as commodity markets rebounded following last week's sharp sell-off, while ICE cocoa prices were steady. Sugar futures rose in early trading, in line with a rebound across commodity markets, as a weaker dollar supported dollar priced commodities.

Ivory Coast resumes cocoa exports after crisis
ABIDJAN, May 9 (Reuters) - Ivory Coast resumed cocoa bean exports on Sunday more than three months after they were halted by the country's political conflict, officials and a Reuters witness said.
Workers were loading beans onto a ship owned by Bollore Africa Logistics from a warehouse brimming with cocoa sacks.

Indonesian coffee exporters cancel 3,000 T of shipments - trade
SINGAPORE, May 9 (Reuters) - Indonesian coffee exporters have cancelled the shipments of at least 3,000 tonnes of robusta beans for April and May delivery because of difficulties in getting supply after erratic harvests, dealers said on Monday.
Harvests in Indonesia's main growing island of Sumatra usually begin in March or April, but yields are down as farmers have been picking cherries since January after persistent rains caused the flowering season to begin earlier in some districts.

Vietnam growers invest to boost yields on firm prices
HANOI, May 9 (Reuters) - Coffee farmers in Vietnam are ploughing gains from steadily rising prices into fertiliser and water pumps to incrementally lift yields, betting the global market will remain in their favour for years before rivals can increase supply.
The world's top robusta coffee producer enjoyed a 107 percent surge in prices to 50 million dong ($2,428) a tonne on May 4 against the start of 2010, while output by No. 2 grower Indonesia could drop 30 percent on heavy rains linked to the La Nina weather pattern.

Uganda coffee exports up 16 pct in April-source
KAMPALA, May 7 (Reuters) - Uganda exported 176,561 60-kg bags of coffee in April this year, up from 152,640 bags exported in the same month of 2010, a source at Uganda Coffee Development Authority (UCDA) said on Saturday.
The rise is the second in a row following four straight months of export declines that were caused by drought and diseases in Africa's second largest grower.

Crisis will not shrink Ivorian cocoa crop -govt
ABIJDAN, May 6 (Reuters) - A bloody post-election crisis in the world's top cocoa grower Ivory Coast will not cut into this season's crop forecast, the nation's top agricultural official said on Friday, as ships arrived to load beans.
Exports from the West African state have been halted for more than three months by a violent power struggle that only eased last month with the arrest of former leader Laurent Gbagbo by forces loyal to new president Alassane Ouattara.

US Sugarbeet Farmers Expand Planting On Soggy Soil Delays (Source: CME)
Sugarbeet farmers in the Midwest are expanding planting areas of the crop, the source of more than half of U.S.-grown sugar, after soil waterlogged by snowmelt and rain caused severe delays in plantings. Now, Moorhead, M.N.-based American Crystal Sugar Company, the U.S.'s largest beet-sugar producer by volume, is increasing acreage by some 5% this year so production stays on target, company spokesman Jeff Schweitzer said. Schweitzer said that 8% of the acres have been planted, while planting last year was 95% complete by May 1. "We're certainty behind," he said. Minn-Dak Farmers Cooperative in Wahpeton, N.D., says it could see acreage increase by up to 7% because of the rain.
Other companies may follow suit. "The later it goes, the more they're going to have to increase acres," said Luther Markwart, executive vice president of the American Sugarbeet Growers Association, a Washington, D.C. trade group. Near-record snowfall and continued rainy and cool weather left soil in key Midwestern growing areas too soggy to plant. According to the U.S. Department of Agriculture's weekly Crop Progress report last week, 15% of sugarbeets in the top four grower states were planted as of May 1, down from 95% at the year-earlier point. Rainfall has let up and is expected to be "spotty" for the next week in the Red River Valley in North Dakota, a major growing region, said National Weather Service meteorologist Al Voelker.
A delay in sugar-beet plantings could reduce yields of the sweetener, since the root's sugar content increases the longer it is in the ground. After they are harvested, the beets are shredded and boiled to extract the sugar. The beets also need to be harvested by October, before cold weather hits. Lower yields could drive up sugar prices and force the country to allow for more imports of the sweetener, amounts that are tightly controlled to protect domestic farmers.

France, Germany Face Big Losses In Wheat Yields Due To Drought (Source: CME)
Eastern France and Germany face the risk of substantial losses in wheat yields as a severe lack of rainfall caused by a blocking high pressure continues to stop the normal procession of Atlantic Depressions from bringing dynamic rainfall to Europe. France's rainfalls in January, February, March and April were respectively 56%, 58%, 74% and 65% of the normal level, according to the French government's weather agency Meteo France. "We are hearing continued concerns about dryness, including Paris areas and further north. Northern Europe is a cause for concern, and the most recent weather forecasts are not seeing much in the way of relief for dry conditions," said soft commodities analyst Brenda Sullivan at Sucden Financial. "Below average rainfall in France, Germany and the U.K. are a growing concern, especially as temperatures build over the next two weeks," ANZ Bank said last week in a note to clients.
Drought issues in Europe occur at a time when buyers scramble to secure supplies from the region's top producer France due to export restrictions in Russia. The Kremlin banned grain exports last summer after the worst drought in more than a century slashed the harvest by around a third to 63 million metric tons. "French and German wheat that has received only 4-10mm of rain, which is at best 10% of normal, this spring is definitely in trouble," said Edward Smith Consultant Meteorologist at WeatherEdge Ltd. The east and southeast of England has also witnessed a lack of rainfall, according to risk manager Agritel. "My feelings are the situation will improve in the U.K. and southwest France, but eastern France and Germany are really at risk of substantial wheat yield falls," Smith added. WeatherEdge Ltd. forecast rainfall issues to become more unsettled for a period of 6-8 weeks from mid-May in Eastern France and Germany.
Non-profit organization France Export Cereales last week said French soft wheat exports outside the European Union are likely to hit 12.3 million metric tons in 2010-11, revising down their April forecast of 13 million tons. "In France the situation is deteriorating with no rainfall forecast for the next few days," said FEC analyst Leandro Pierbattisti.

Australian Agribusiness Conditions Deteriorate In 1Q - NAB (Source: CME)
Australian agribusiness conditions deteriorated further in the first quarter of 2011, but a quarterly survey issued by National Australia Bank Ltd., showed expectations for the year are fairly optimistic based on a solid production outlook and strong demand, despite a strong currency. The general manager of NAB's Agribusiness unit, Khan Horne, said flooding in January caused a fall in an index for business conditions by 10 points in the first quarter to -14, its lowest point since June 2009, reflecting a downturn in profitability, trading conditions and employment, the three indicators that make up the business conditions index. Significant supply disruptions from the floods increased purchase costs for materials and higher final product prices weren't sufficient to prevent sales margins contracting in the sector, comprising meatworks and other food and fiber related processing and manufacturing operations, he said in a statement.
Output in the first quarter was constrained by availability of raw materials, again caused by the flooding and as a result sales were also impacted despite solid global demand, he said. Despite these setbacks, long-term expectations in the post farm gate sector remain positive. The 12-month outlook is still strong with 39% of respondents predicting an increase in business conditions and 41% expecting an increase in profitability, Horne said. This optimism is based on improved dam storages and water allocations boosting production conditions, along with rising global food prices and constrained production in key competing nations, he said. Of those surveyed, 37% expect to increase capital expenditure over the next year, further evidence of optimism, Horne said. The bank surveys agribusiness as part of its wider quarterly business survey.

India Food Minister: To Be Cautious In Lifting Wheat, Rice Export Ban (Source: CME)
India will be cautious in lifting a more than three-year-old ban on wheat and rice exports, Food Minister K.V. Thomas said, although the country is expecting a bumper foodgrain crop and has bins overflowing. He said the country needs to weigh any such move carefully as it is planning to implement a food security law that will raise subsidized sales to the poor. The draft of the law is expected to be introduced in parliament this year for approval, the minister said. The ministry plans to supply 3.3 million tons of additional wheat and rice for subsidized sales, he said, without elaborating on details such as on the timing of the program.

Oil Declines From Three-Day High in New York as Investors Lock In Profits (Source: Bloomberg)
Oil declined in New York, slipping from a three-day high, as investors sold contracts to lock in profits after prices surged 5.5 percent, the biggest increase since February. Futures dropped as much as 1 percent before a report today from China’s custom bureau that may show export growth in the world’s largest energy user slowed last month, according to economists surveyed by Bloomberg News. Crude prices climbed yesterday from the biggest weekly decline since December 2008.

Gradual base metals recovery seen, hinges on China
LONDON, May 6 (Reuters) - Industrial metals prices will recover gradually from this week's sell-off as top consumer China returns to the table, commodities analysts said, although some argued copper had further to fall and could drag others down.
Metals were trying to steady on Friday after the broad falls across the commodities and other asset classes triggered by worries over slowing global growth.

Warehouse tie-ups lift aluminum premiums to record
NEW YORK, May 6 (Reuters) - U.S. Midwest spot aluminum premiums shot to record highs this week, closing in on the 10 cent-per-lb level, as lengthy lead times out of North American warehouses continued to choke off supply flows.
Premiums paid over the London Metal Exchange (LME) cash price  climbed to an all-time peak at 9.5 to 9.75 cents per lb this week, up more than 45 percent since the start of the year.

Specs cut net longs in silver, gold, copper
NEW YORK, May 6 (Reuters) - Speculators scaled back their bullish bets in COMEX silver futures and options to the lowest level since early February, as prices lost 5 percent after briefly hit a record high near $50 an ounce, U.S. regulator data showed Friday.
Speculators in gold and copper futures and options also cut their net long positions in the week ended May 3 as metals prices fell in tandem with a weaker commodities sector, according to the latest report by the Commodity Futures Trading Commission.

Copper open interest hits lowest since Feb 2010
NEW YORK, May 6 (Reuters) - Open interest in U.S. copper futures fell on Friday to the lowest since February 2010, data from the COMEX exchange showed.
Open interest in copper  amounted to 124,522 lots, down 1,736 lots from the day before and the lowest since Feb. 26, 2010, as the key July contract  extended losses this week through the psychological $4 per lb level.

China April daily crude steel output at 1.93 mln t, up 1 pct on March - CISA
BEIJING, May 9 (Reuters) - China's daily crude steel output hit 1.93 million tonnes in April, up 1 percent from March, data from the China Iron & Steel Association (CISA) showed on Monday.
In the last 10 days of April, China's steel production rebounded to 1.94 million tonnes on a daily basis, up 1.9 percent from the preceding 10 days.

European steel pulls clear of margin squeeze in Q1
BRUSSELS, May 6 (Reuters) - European steelmakers were seen expanding squeezed margins at the start of 2011 as prices caught up with a spike in iron ore and coal costs and demand improved, particularly from the auto and engineering sectors.
ArcelorMittal , the world's largest steelmaker, kicks off sector earnings for the region next Wednesday, having already said core profit (EBITDA) for the January-March period would rebound from a very weak level at the end of 2010.

Indonesia's April tin exports rise 22 pct yr/yr
JAKARTA, May 9 (Reuters) - Indonesia's refined tin exports rose 22 percent in April from the same month last year, due to improving weather conditions, an official at the trade ministry said on Monday.
Indonesia, the world's top tin exporter, shipped 9,708.45 tonnes of refined tin in April, compared to 7,926.49 tonnes in April last year, trade ministry data showed.

METALS-Copper rebounds, helped by weaker dollar
LONDON, May 9 (Reuters) - Copper rose on Monday as a weaker dollar and upbeat U.S. employment data helped lure investors back after the commodities sell-off last week.
Copper for three-month delivery on the London Metal Exchange  traded at $8,930 a tonne in rings versus $8,825 a tonne at Friday's close. The metal used in power and construction had hit $8,657.50 on Friday, its lowest since early December.

PRECIOUS-Gold rises, silver climbs 6 pct as dollar retreats
LONDON, May 9 (Reuters) - Gold climbed back above $1,500 an ounce on Monday and silver rallied more than 6 percent as a retreating dollar and a rebound in oil prices helped precious metals recover some ground after last week's hefty losses.
Spot gold  rose as high as $1,510.40 an ounce and was bid at $1,506.30 an ounce at 1123 GMT, against $1,494.05 late in New York on Friday. Silver  rallied more than 6 percent to a high of $37.94 and was later at $37.42 an ounce versus $35.60.

Gold extends gains on weak dollar; silver rises 3 pct
SINGAPORE, May 9 (Reuters) - Gold extended gains on a weaker dollar, after suffering its worst weekly loss since 2009, while silver rose nearly 3 percent as investors took advantage of last week's free fall in prices to enter the market.
"It is too early to say that silver has started to rebound, as it is still stuck in a descending channel. What will eventually decide the price trend in precious metals is the U.S. monetary policy," he said. 

20110510 0918 Soy Oil & Palm Oil Related News.

Soy Oil chart reading : pullback correction downside biased.

ITS CPO export up 16.5% to 323,655 tonnes for the period of 1~10 May 2011.
SGS CPO export down 1% to 323,664 tonnes for the period of 1~10 May 2011.

MPOB Official Data for the month of Apr 2011 vs Mar 2011
Export up 7.8%
Stock up 3.49%
Output up 8.02%

Soybeans  (Source: CME)
US soybean futures rise on spillover strength from broad-based commodity markets. Soaring crude oil and precious metal futures serve as the catalyst to rekindle speculative buying following last week's sharp declines, analysts say. Futures received further support from improved conditions for corn planting in parts of the central and western Corn Belt, a feature that could leave less acreage to potentially be shifted to soybeans due to overall slow corn plantings. However, soybeans failed to rally at the same pace as neighboring corn and wheat futures, as sluggish export demand amid competition from record South American harvests limited advances. CBOT July soybeans settled up 9c or 0.7% at $13.35 a bushel.

Soybean Meal/Oil (Source: CME)
US soy product futures finish higher, climbing in unison with soybean futures. Broader based commodity gains underpin prices, with soyoil buoyed by soaring crude oil futures, analysts say. Crude oil influences soyoil due to its use in biofuels. CBOT July soyoil settles up 0.60c or 1.1% at 56.29 cents per pound, and July soymeal ends up $0.90 or 0.3% at $350.40 per short ton.

Palm bounces as markets stabilise after last week's rout
KUALA LUMPUR, May 9 (Reuters) - Malaysian palm oil futures rebounded in tandem with stronger commodity markets as solid U.S. payrolls data showed global economy was on track for recovery although fundamentals for the tropical oil remain uncertain. "Stable global market has pulled up palm oil prices, but there still full of uncertainty and volatility in this market," said a trader in Kuala Lumpur.

India's April oilmeal exports more than double y/y
NEW DELHI, May 6 (Reuters) - India's annual oilmeal exports more than doubled in April on robust demand from Vietnam and Japan, a leading trade body said on Friday, registering a sixth consecutive monthly rise.
Annual sales to Vietnam rose for two months in a row as the Southeast Asian country's economy picked up steam.

Argentine soy, corn crop forecasts rise-Rosario
BUENOS AIRES, May 6 (Reuters) - Prospects for Argentina's 2010/11 soy crop are improving as healthy yields in northern farming areas compensate for poorer conditions in Buenos Aires province, the Rosario grains exchange said on Friday.
Soybean output in the world's No. 3 exporter is expected to total 50.2 million tonnes, up from a previous forecast issued in April of 49.7 million tonnes, the exchange said in a report.

20110510 0825 FCPO EOD Daily Chart Study.

FCPO closed : 3238, changed : +43 points, volume : lower.
Bollinger band reading : pullback correction downside biased.
MACD Histrogram : turned upward, seller taking profit.
Support : 3200, 3150, 3100, 3070 level.
Resistance : 3250, 3270, 3300, 3350 level.
Comment :
FCPO closed recorded gains with lower volume participation ahead of tomorrow export and MPOB April 2011 official data while soy oil last Friday closed lower but off the low and currently rebounding higher as most commodities recovering higher after last week slumps.
Daily chart formed an up bar doji candle with longer upper shadow closed above lower Bollinger band level after market opened 2 ticks higher, moved little lower and surged higher partly due to some profit taking and short covering activities tested higher resistance before eased little lower to closed off the high of the day.
Chart reading suggesting a downside biased market development with pullback correction taking place 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 larger cut loss and profit target.

20110510 0824 FKLI EOD Daily Chart Study.

FKLI closed : 1518 changed : +5.5 points, volume : lower.
Bollinger band reading : correction range bound little downside biased.
MACD Histrogram : turned upward, seller taking profit.
Support : 1515, 1500, 1485, 1470 level.
Resistance : 1530, 1540, 1550, 1565 level.
Comment :
FKLI closed recorded gain with lower volume changed hand doing half point discount compare to cash market that rebounded higher while regional markets trading mostly higher after U.S. non farm payrolls released a better and expected employment data while Japan market traded after nuclear power plant shutdown.
Daily chart formed an up doji bar candle with longer lower shadow closed nearer to middle Bollinger band level after market opened gap up, traded lower recorded loss and recovered upwards to closed recorded gain near the high of the day.
Chart reading suggesting a correction range bound little downside biased market development potentially testing higher 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.