Wednesday, May 11, 2011

20110511 1858 FCPO EOD Daily Chart Study.

FCPO closed : 3269, changed : +11 points, volume : higher .
Bollinger band reading : side way range bound little downside biased.
MACD Histrogram : getting higher, seller leaving as buyer testing market.
Support : 3250, 3200, 3150, 3100 level.
Resistance : 3270, 3300, 3350, 3420 level.
Comment :
Tight range FCPO closed recorded small gain with little improved volume exchanged while soy oil overnight closed higher and currently trading little softer ahead USDA reporting.
News wise, Indonesia official announced plan to lower maximum palm oil export taxes while Reuters survey reported higher India vegetable oil imports for the month April 2001(higher palm oil imports but lowers soybean oil imports).
Daily chart formed a small up doji bar candle closed near middle Bollinger band level after market opened little higher and traded upwards slowly followed by second session fall tested below yesterday closing price before recovered upward to closed near opening price.
Chart reading suggesting a side way range bound little downside biased market development testing support and resistance level with MACD indicator just having a crossed up. Price could possibly trading within the plotted side way channel.
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.

20110511 1755 Breaking News.

Italy is next in line to seek a bailout from the European Union and the International Monetary Fund as a 'slow-motion banking crisis' unfolds in the country, Felix Zulauf, President of Zulauf Asset Management said.Everyone is focused on Spain. I think the next country to go is Italy," Zulauf told delegates at a conference in Edinburgh. "What I notice is a tremendous deposit outflow. It's a slow-motion banking crisis, and the banking system has been the big buyer of government bonds in Italy," Zulauf said.

China's inflation eased in April to 5.3 percent and other data, including for industrial output and loans, suggested the world's second-biggest economy may be cooling and there was less need for further aggressive monetary tightening.Inflation was slightly higher than expected but lower than a 32-month high in March of 5.4 percent, underlining expectations that price pressures were peaking and would start to ease in the second half of 2011.

Jim Rogers, the veteran investor and commodity bull, plans to short U.S. Treasuries, maybe today if he "gets around to it" and wants to buy more silver, he told Reuters in an interview.Rogers, who rose to prominence as co-founder of the former Quantum Fund with billionaire investor George Soros four decades ago, said he expects bond prices to fall and the U.S. dollar to rally when the Federal Reserve halts its government bond buying program at the end of June.

20110511 1751 Reuters Survey on India Vegetable Oil Imports.

Reuters Survey :

India's April 2011 imports vs March 2011 :
Vegetable oil imports seen up 15.5% to 503,375 tonnes.
Palm oil imports seen up 42.4%.
Soybean oil imports seen down 33.1%.

Vegetable oil import could rise in May 2011

20110511 1741 FKLI EOD Daily Chart Study.

FKLI closed : 1535 changed : +14.5 points, volume : higher.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : recovering, seller closing position and buyer show interest.
Support : 1530, 1515, 1500, 1485 level.
Resistance : 1540, 1550, 1565, 1580 level.
Comment :
FKLI closed recorded substantial gain ahead of China inflation data with better volume participation doing 1 point discount compare to cash market that also recorded gain while regional markets trading mixed and U.S. overnight closed firmer.
News are more positive biased after our Prime Minister hinted that the country's general election could be anytime soon and China announced a better than forecast trade data plus U.S. corporate activities like launch of Apple iPad 2 and Microsoft - Skype deal. 
Daily chart formed an up bar candle closed near upper Bollinger band level with the bandwidth start expanding after market gap up, taken few steps backward and surged higher to closed near the high of the day.
Chart reading turned to suggesting a side way range bound little upside 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.

20110511 1602 Global Market & Commodities Related News.

Asian markets firmer on commodity rebound
MELBOURNE, May 11 (Reuters) - Asian shares firmed on Wednesday on rising commodity prices which boosted energy and resource stocks, as investors largely shrugged off slightly stronger-than-expected inflation data from China.
"The economy is slowing, but not very seriously," said Chen Gang, an economist with CEBM in Shanghai. "It is still far from the warning line for the Chinese leadership. There is no room for the central bank to relax its monetary tightening." 

China's key commodities imports fall in April amid destocking
SHANGHAI, May 10 (Reuters) - China's imports of copper, aluminium and iron ore pulled back sharply in April from a month ago, as high global prices and comfortable inventories at home kept buyers at bay.
Analysts said China's appetite for these commodities would likely return around the fourth quarter after users run down swollen stockpiles.

Corn ticks up, wheat steady ahead of key U.S. report
SINGAPORE, May 11 (Reuters) - U.S. corn futures edged higher on Wednesday, while wheat was little changed after three straight sessions of gains, as investors took positions ahead of a key government report on world demand-supply of agricultural products.
"The market players are trying to position before the actual announcement of the report later today, so we don't expect to see sharp movements before it is released," said Ker Chung Yang, investment analyst at Phillip Futures in Singapore.

Thin sugar supplies congest Brazil ports
LONDON/SAO PAULO, May 10 (Reuters) - A line of vessels waiting to load sugar at Brazilian ports has swelled because supplies of the sweetener from the new cane harvest have been slow to hit terminals, trade and shipping sources said on Tuesday.
Excess rains from February through mid-April prevented mills from crushing the new crop, unlike a year ago, when exceptionally dry weather allowed producers to start harvesting the crop unusually early.

Tumbling prices, global surplus in focus at sugar meet
SINGAPORE, May 11 (Reuters) - Record cane crop in Brazil, soaring sugar output in Thailand, exports from India, a global surplus and a dramatic fall in prices from 30-year highs will be in the spotlight at an industry gathering this week.
Mounting worries that supply will outstrip demand have dragged down sugar prices  by nearly 40 percent from a peak of around 36 U.S. cents/lb hit in February, when fears of damage to the crop in Australia -- one of the biggest exporters of the sweetener -- from cyclone Yasi ignited a rally.

Venture Minerals plans to start tin production in 2013
SYDNEY, May 11 (Reuters) - Australian miner Venture Minerals  plans to start tin production from its Mount Lindsay project in Tasmania in 2013, in time to capture strong global demand for the metal, managing director Hamish Halliday told Reuters on Wednesday.
Tin prices have nearly doubled in the last year to trade at 30-year highs. Analysts point to strong demand from the solder market, coupled with constraints in world supply, particularly from Indonesia.

Indonesia coffee woes keep global prices on the boil
SINGAPORE, May 10 (Reuters) - Global robusta coffee prices may challenge a recent three-year peak as continued heavy rains in Indonesia's Sumatra island cause severe damage to unripe cherries and threaten the upcoming harvest, leading exporters to cancel shipments from the world's second largest producer.
As inventories drop in the main growing island of Sumatra, dealers are also struggling to meet demand from domestic roasters, with annual consumption in Southeast Asia's largest economy growing by an average around 4 percent since the mid-1980s.

Canadian Wheat Board ex-CEOs see tough road ahead
WINNIPEG, Manitoba, May 10 (Reuters) - The Canadian Wheat Board faces a tough battle to survive as a voluntary pool competing against grain-handling heavyweights, two former chief executives of the monopoly seller say.
The big three Canadian grain handlers, Viterra Inc , Richardson International Limited and Cargill Inc won't easily welcome a new competitor and the board is hobbled without elevators and port terminals, said Greg Arason, who headed the Winnipeg-based Wheat Board from 1999-2002 and 2006-2008.

"Once in a lifetime" flood submerges US farm land
CHICAGO, May 10 (Reuters) - Nearly 3 million acres of farm land in three southern U.S. states have been submerged by flood waters from the raging Mississippi River and its smaller tributaries, adding to troubles in seeding this year's crops in the world's top grain exporter.
Although the area constitutes 1 percent land seeded with major crops in the United States, the loss comes at a time when grains have soared due to dwindling supplies, weather woes in other exporting nations and increased consumption.

Oil slips after China inflation exceeds forecasts
SINGAPORE, May 11 (Reuters) - Brent crude fell towards $117 on Wednesday after China's inflation exceeded expectations in April, rekindling concern that Beijing's efforts to cool the economy of the world's second-largest oil user would erode energy demand.
"Yesterday's outlook making downward revisions to oil demand forecasts has spurred concerns about slowing growth," said Serene Lim, an ANZ Bank oil analyst based in Singapore.

China april crude oil output up 4.4 pct on year - stats bureau
BEIJING, May 11 (Reuters) - China's crude oil production increased 4.4 percent from a year earlier to 16.96 million tonnes in April, the National Bureau of Statistics said on Wednesday.
Output was equivalent to 79 percent of crude oil imports in April by the world's second largest oil consumer.

China April power output up 11.7 pct y/y -stats bureau
BEIJING, May 11 (Reuters) - China's power output increased 11.7 percent in April from a year earlier to 366.4 billion kilowatt hours, the National Bureau of Statistics said on Wednesday. 
Power generation in the first four months gained 12.6 percent from a year earlier to 1,430.5 billion kwh, the data showed.

Oil rises on flood threat to U.S. refiners, China
NEW YORK, May 10 (Reuters) - Oil rose on Tuesday, supported by concerns that flooding could hit the U.S. Gulf Coast refining hub and data showing strong Chinese crude imports for April.
While no refineries had been forced to cut operations yet, rising waters along the Mississippi threatened to disrupt plants in Louisiana, including the second largest U.S. refinery, in the next two weeks.

China April oil demand 3rd highest ever, growth rate slips
BEIJING, May 11 (Reuters) - A sustained appetite for oil in China, the world's largest energy user and the biggest single driver of world demand growth last year, could derail predictions by economists that higher oil prices would destroy demand worldwide.
China's implied demand, a combination of crude oil throughput and net imports of refined oil products, averaged 9.32 million barrels per day (bpd) last month, Reuters calculations based on preliminary government data showed on Wednesday.

Shanghai copper falls after China inflation data
SINGAPORE, May 11 (Reuters) - Shanghai copper fell on Wednesday after Chinese inflation data came in above forecasts, with signs of stabilisation in the dollar and worries about the euro debt crisis also weighing on prices.
"The figure shows that inflation is high and that the central bank may have to use more drastic tightening measures," China Futures Co Analyst Yang Jun said.

China April aluminium, alumina output hit records, copper down
HONG KONG, May 11 (Reuters) - China's production of primary aluminium and alumina hit monthly records in April for the second consecutive month, while refined copper dropped 3.4 percent from March's record due to reduced supply of scrap.
China, the world's top producer of aluminium, made 1.459 million tonnes of primary aluminium in April, up 2.2 percent from the previous record of 1.428 million tonnes in March, the data released by the National Bureau of Statistics showed on Wednesday. The output rose 7.4 percent from a year earlier.

China April daily steel output hits record 1.97 mln T
BEIJING, May 11 (Reuters) - China's daily crude steel output reached a record 1.968 million tonnes in April, figures from the country's statistics bureau showed on Wednesday.
Monthly output stood at 59.03 million tonnes, down slightly compared with March but up 2.6 percent when calculated on a daily basis, according to Reuters calculations.

Too early to call a bear market for copper
LONDON/HONG KONG, May 10 (Reuters) - An exodus of investors from the copper market could see prices slip to the $8,000 a tonne mark before heading back towards record highs later this year as stronger demand from China and Japan becomes visible.
Copper prices tumbled with other commodities last week as the dollar strengthened and investors fretted about consumption after disappointing surveys of manufacturing in top consumers China and United States.

Gold edges up, silver rises; China data seen to support
SINGAPORE, May 11 (Reuters) - - Gold held steady and silver rose more than 1 percent on Wednesday, as concerns about China's high inflation and waning economic growth are seen buoying interest in precious metals.
"Gold is generally benefiting from the return of confidence from investors," said Darren Heathcote, head of trading at Investec Australia. 

20110511 1156 Global Market & Commodities Related News.

GLOBAL MARKETS: Asian shares rise; eyes on China inflation data
MELBOURNE, May 11 (Reuters) - Asian shares pushed higher in line with gains in world markets as Chinese trade data buoyed optimism about the global recovery, but investors will be watching China's inflation data due later on Wednesday for any hints on further tightening.
U.S. stocks rose for a third day in a row, led by utilities and other defensive sectors, while European shares climbed to a one-week closing high as investor concerns over a possible Greek debt restructuring receded.

OIL: U.S. Oil rises on flood threat to U.S. refiners, China
NEW YORK, May 10 (Reuters) - Oil rose on Tuesday, supported by concerns that flooding could hit the U.S. Gulf Coast refining hub and data showing strong Chinese crude imports for April.
"Crude futures are stronger today as the flooding in Mississippi River has raised worries about refinery operations in that region," said Mark Waggoner, president of Excel Futures in Bend, Oregon.

NATURAL GAS: Natural gas ends up, first gain in 7 sessions
NEW YORK, May 10 (Reuters) - Front-month U.S. natural gas futures ended higher on Tuesday, backed by a technical bounce after six straight losing sessions despite mild northern tier weather this week that has slowed demand.
"I think there was some short covering or technical buying going on, but the (bearish) fundamentals haven't changed - there is a little warm weather around, but there's still a lot of gas out there," a Pennsylvania-based trader said.

EUROCOAL : ARA prices dip $1.50 on oil, dollar rise
LONDON, May 10 (Reuters) - European coal prices fell by around $1.50 a tonne on Tuesday, or just over 1 percent, after oil prices pared earlier gains and the dollar rose, traders and utilities said.
"There aren't any new factors driving coal. It's tracking oil and the dollar, and few players are in the market today," one European utility source said.

COMMODITIES: Oil bounces 1 pct on flood threat, grains rise
NEW YORK, May 10 (Reuters) - Chinese trade data indicating a healthy global economy lifted crude oil and copper to a second day of gains as commodities continued to recover from last week's near-record sell-off.
"A correction like that is actually good in the longer run," said James Rife, an assistant portfolio manager of Haber Trilix Advisors, which manages $2 billion in assets.

Malaysia's Petronas plans $17 bln energy plant-paper
KUALA LUMPUR, May 11 (Reuters) - Malaysia's national oil firm Petroliam Nasional Bhd (Petronas) will invest about 50 billion ringgit ($17 billion) in a downstream oil and gas complex in southern Johor state, the Star newspaper reported on Wednesday citing unnamed sources.
The facility in Pengerang, Johor, would include oil refining and petrochemical facilities as well as a gas power plant, the paper said, adding that the investment would be announced on Friday.

Airline business travel growth battles fuel factor
LONDON, May 10 (Reuters) - The recovery in business travel and exposure to fast-growing emerging markets are becoming the driving factors in the airline industry and those without it have no buffer against higher fuel costs.
Tuesday's batch of industry results demonstrated this, with profits from Dubai's Emirates [EMIRA.UL] powering ahead on high-end travel growth while UK-based easyJet  and Scandinavian airline SAS  were both driven into losses by rising kerosene prices and a faltering economic recovery in Europe.

Australia's booming LNG sector poses carbon conundrum
SINGAPORE, May 10 (Reuters) - Australia's rising liquefied natural gas (LNG) exports may make for bluer skies over Chinese power plants, but back home LNG producers will pump out more carbon emissions than the coal sector.
Natural gas is the cleanest of the fossil fuels when it is burned, so energy-hungry Asian nations are snapping up stakes in LNG projects as they look to guarantee fuel supplies to meet fast-growing energy needs while weaning economies off coal and cutting emissions. 

20110511 1034 China Apr 2011 Data

China Data :
Apr 2011 CPI +5.3% from a year ago (forecast +5.2%)
Apr 2011 PPI +6.8% from a year ago (forecast +7%)
Jan ~ Apr 2011 fixed assest investment +25.4% from a year ago (forecast +24.8%)
Apr 2011 Industry Output +13.4% from a year ago (forecast +14.7%)
Apr 2011 Retails Sales +17.1% from a year ago (forecast +17.6%)

20110511 1015 Global Economic Related News.

China: Bigger-than-forecast surplus on record exports
China reported a trade surplus that was more than three times larger than forecast in April as exports surged to a record, bolstering the U.S. case for faster yuan gains as officials from both nations meet for annual talks in Washington. The surplus widened to USD11.4bn and exceeded the forecasts of all 27 economists in a Bloomberg News survey. Exports climbed 30% to USD156bn while import growth slowed to 22%, the customs bureau said today. The rebound in China’s surplus to its highest this year may add pressure on the world’s biggest exporter and holder of foreign-exchange reserves to address imbalances and reduce inflation through steeper yuan appreciation. U.S. Treasury Secretary Timothy F. Geithner and Chinese Vice Premier Wang Qishan pledged yesterday to tackle currency conflicts between the world’s biggest economies. (Bloomberg)

China: Wang calls for shift in China growth model as surplus jumps
China’s vice premier, leading annual economic talks with the U.S., signaled internal divisions over his government’s pledge to reduce reliance on overseas demand as the nation posted a wider trade surplus led by record exports.“The biggest challenge for us in this respect is to make sure that everyone is on the same page,” Wang Qishan said in an interview on the “Charlie Rose” show airing on PBS and Bloomberg Television. “We need to come to the same conclusion that we must transform our economic development pattern.” (Bloomberg)

South Korea: Unemployment rate declines to a 3-month low
South Korea’s unemployment rate fell to a three-month low as an economic recovery spurred hiring at manufacturers and health and social welfare service providers. The jobless rate fell to 3.6 percent in April from 4 % in March, Statistics Korea said today in Gwacheon, south of Seoul. The median estimate in a Bloomberg News survey of 12 economists was for a rate of 3.8%. An improving job market, combined with higher energy and food costs that are fueling inflation at home, may compel the Bank of Korea to raise its benchmark interest rate to 3.25% when it meets on May 13. (Bloomberg)

Australia: Cuts spending to fight inflation, set path to surplus
Australia’s government will end 23 years of spending growth to ease inflation from a mining boom and support the return to a budget surplus, even as it plans measures to help companies hurt by a record-high currency. The underlying cash deficit will narrow to AUD22.6bn (USD24.4bn) in the 12 months to June 30, 2012, less than half the AUD49.4bn gap this fiscal year, Treasurer Wayne Swan said in Canberra yesterday. The government plans AUD22.2bn in savings over the next four years that it projects will help deliver a AUD3.5bn surplus in 2012-13, an election year. (Bloomberg)

EU: ECB against Greece debt restructuring
European Central Bank officials warned of catastrophic consequences if Greece was allowed to restructure its sovereign debt. Fellow board member Juergen Stark said restructuring “wouldn’t be a solution to the problems that Greece needs to overcome. Concern at the Frankfurt-based ECB is growing after Greek bon yields soared to all-time highs on speculation the government will be unable to meet its refinancing needs under the conditions of its current EUR110bn (USD158bn) bailout package. Greece’s credit rating was yesterday cut two levels by Standard & Poor’s, which said further reductions are possible as the risk of default rises.

U.S: Cost of imported goods climbs in April as a slumping dollar and growing economies overseas pushed up the cost of fuel and food. The 2.2% MoM increase in the import-price index followed a revised 2.6% MoM gain in March. (Source: Bloomberg)

U.S: March wholesale inventories increase 1.1% MoM; Sales jump 2.9% MoM. At the current pace of sales, wholesalers had enough goods on hand to last 1.13 months, matching the level in June 2008 as the lowest on record. Distributor inventories, which also reflect rising imports, may continue to add to gross domestic product in the current quarter. (Source: Bloomberg)

U.K: Retail sales surged the most in five years last month as public holidays and the warmest April on record spurred spending, the British Retail Consortium said. Sales rose 5.2% YoY in April on a like-for-like basis, which excludes new-store openings. The reading follows a 3.5% YoY drop in March, and taken together the data suggest sales over the two months stalled, the BRC said. (Source: Bloomberg)

Philippines: Exports growth slowed in March, rising less than estimated after electronics sales dropped and as Japan's record earthquake disrupts trade in Asia. Shipments abroad expanded 4% YoY to USD4.35b after rising a revised 8.3% YoY in February. (Source: Bloomberg)

Australia: Reports trade surplus in March, rebounding from a deficit the previous month as increased exports of iron ore and coal outpaced higher imports of gasoline. The excess was AUD 1.74b (USD 1.88b), from a revised AUD 87m deficit in February. (Source: Bloomberg)    

20110511 1014 Malaysia Corporate Related News.

KLCI chart reading : 
correction range bound little downside biased.

TM to fork out RM3.4bn in capex
Telekom Malaysia will fork out RM3.4bn in capital expenditure (capex) for this year, including RM2bn to be spent on completing its recently launched high-speed broadband (HSBB) submarine cables. The remaining Rm1.4bn will be set aside for day to day operational expenses, TM chief financial officer Datuk Bazlan Othman told reporters after the company’s annual general meeting (AGM) in Kuala Lumpur yesterday. Tm had raised part of the capital expenditure through the issuance of the first tranche of a RM2bn sukuk in April, and will issue the second “as and when required”, said Bazlan. (Malaysian Reserve)

Malay Chamber: Give us RM3.6bn MRT project
The Malay Chamber of Commerce Malaysia has asked the government to hand over the RM36bn Mass Rapid Transit (MRT) project, the country’s biggest infrastructure project, to the chamber. The chamber says it will undertake the mega project in collaboration with other contractors associations. He said the project, currently managed by Syarikat Prasarana Negara Bhd (SPNB) , had imposed several conditions to companies intending to bid for the project and the conditions seemed difficult for Buimiputera contractors to participate in the project. (Malaysian Reserve)

Banks raising BLR by 30bps today
Banks are raising their lending rate by 30 basis points today, following Bank Negara Malaysia’s (BNM) move to raise key interest rates by 25 bps to 3% last week. Industry sources said all banks are raising their lending rates, led by CIMB Bank Bhd. While the overnight policy rate (OPR) was only raised 25bps, banks are raising their lending rates by 30bps as they added both the impact from the rise in statutory reserve requirement (SRR) and OPR to the lending rate increase, according to a source. (Financial Daily)

HLBB increases proposed rights issue size to RM2.6bn
After sealing the deal to acquire the assets and liabilities of EON Capital Bhd (EONCap) last week, Hong Leong Bank Bhd (HLBB) has proposed to increase the size of its rights issue to RM2.6bn from RM1.6bn previously. In an announcement to Bursa Malaysia yesterday, HLBB said it proposed to increase the size of its rights issue to furher strengthen its capital base and for working capital purposes. (Financial Daily)

Two IPOs with expected market capitalisation of RM6bn coming
Investors can look forward to two large initial public offerings (IPOs) coming on board the Main Market of Bursa Malaysia in the second half of this year. One is UOA Development Bhd, which is expected to be listed in June, with a potential market capitalisation of RM3bn. The other is Axis Global Islamic Real Estate Investment Trust (REIT), a unit of Axis REIT Management Sdn Bhd. It is set to be the world's largest Islamic REIT, also valued at some RM3bn once it is listed. (Starbiz)

Higher Q4 profit for Hartalega
Hartalega Holdings Bhd, the world’s largest synthetic glove manufacturer, posted a higher fourth-quarter net profit of RM52.4mil compared with RM46.4mil a year ago. For the three months ended 31 March, revenue increased to RM192.5m from RM163.4m previously.The higher revenue was due to the company’s continuous expansion in production capacity, increase in demand, effective cost control and improvement in production processes. (Starbiz)

BSompo sets new benchmark in insurance M&A
Momentum for mergers and acquisitions (M&A) in the domestic insurance sector is keeping up, as is the valuation of insurance assets. The latest development is Berjaya Corp Bhd’s (BCorp) disposal of a 40% stake in Berjaya Sompo Insurance Bhd (BSompo) to its Japanese stakeholders, which seems to have set a new benchmark pricing for general insurers at above three times book value. On Monday, BCorp announced it had set a price of RM496mn for its 40% stake in BSompo held by its wholly owned unit Capital Bhd (BCap). (Financial Daily)

O&G: Petronas to announce RM50b complex in Johor. Petroliam will announce on Friday its plans to invest around RM50b in an integrated downstream oil and gas complex in Pengerang, Johor. Dubbed Rapid or Refinery And Petrochemical Integrated Development, the project is aimed at building something "larger than Kertih" and will eventually include multinational oil and gas companies as joint-venture partners. (Source: The Star)

REIT: Listing plan for Pavilion KL. Datuk Desmond Lim Siew Choon is preparing to list Pavilion Kuala Lumpur, in what could be Malaysia's largest initial public offering of a real estate investment trust (REIT). The assets under it could be worth between RM4b and RM5b. (Source: Business Times)

RHBCap: Appoints Kam as new MD. RHB Capital Bhd has appointed Kellee Kam Chee Kiong as MD of the banking group. Prior to his appointment as MD, Kam was the principal officer of RHBCap. (Source: The Edge Financial Daily)

Maybank: Eyes 12% loan growth in FY11. Maybank has set a 12% loan growth target for FY11, driven by project financing under the Economic Transformation Programme. (Source: The Edge Financial Daily)

Integrax, TNB: Perak Corp to meet TNB next week, Integrax received TNB summons and claims. Tenaga Nasional Bhd (TNB) is said to be meeting Perak Corp to sort out their differences in Integrax Bhd next week. Separately, Integrax has received a letter from TNB seeking a High Court order to declare the EGM called by the shareholders illegal and to seek an injunction against eight defendants including Integrax co-founder. TNB also filed some claims but no fixed amount was included. (Source: The Edge Financial Daily)

E&O: ECM Libra buys stake in E&O. ECM Libra Financial Group Bhd's unit has bought a 5.12% stake in Eastern & Oriental Bhd (E&O). (Source: Bursa Announcements)

20110511 0952 Global Market Related News.

DJIA chart reading : correction range bound upside biased.
Hang Seng chart reading : pullback correction downside biased.  

World stocks up as oil slips;Greek woes hit euro
LONDON, May 10 (Reuters) - World stocks advanced on Tuesday as falling oil prices and strong Chinese trade data reinforced optimism about the global economy, while Greek debt concerns pushed the euro broadly weaker. The euro briefly gained against the dollar after a media report that a deal to resolved Greece's debt problems could come as soon as June, but Greece denied it was discussing a new aid package.

Cost of U.S. Imported Goods Rises More Than Estimated on Food, Fuel Prices (Source: Bloomberg)
Prices of goods imported into the U.S. rose more than forecast in April as a slumping dollar and growing economies overseas pushed up the cost of fuel and food.

U.S. Wholesale Inventories Increased 1.1% in March; Sales Climbed by 2.9% (Source: Bloomberg)
Inventories at U.S. wholesalers rose less than sales in March, a sign companies will continue to add to stockpiles to meet demand.

Bernanke’s QE2 Averts Deflation, Spurs Credit (Source: Bloomberg)
Ben S. Bernanke’s $600 billion strike against deflation is paying off, as stock and debt markets rise, bank lending grows and economists forecast faster growth. The Standard & Poor’s 500 Index has gained 13.5 percent since the Federal Reserve chairman announced on Nov. 3 the plan to buy Treasuries through its so-called quantitative easing policy. Government bond yields show investors expect consumer prices to rise in line with historical averages. The riskiest companies are obtaining credit at the cheapest borrowing costs ever and Fed data show that commercial and industrial loans outstanding are rising for the first time since 2008.

U.S. Stocks Rise on Earnings, M&A Deals (Source: Bloomberg)
U.S. stocks rose for a third day as higher-than-estimated profit forecasts and Microsoft Corp. (MSFT)’s purchase of Skype Technologies SA bolstered optimism that earnings and takeovers will keep fueling the rally. Dean Foods Co. (DF), the largest U.S. milk processor, jumped 11 percent after its earnings forecast beat analysts’ estimates. Microsoft fell 0.6 percent after agreeing to buy Skype for $8.5 billion to expand its Internet presence after past failures. Titanium Metals Corp. (TIE) gained 2 percent, pacing gains in raw- material producers, as metal prices advanced before the release of figures that may show weaker inflation in China.

Home Prices Drop in Three-Fourths of U.S. Metro Areas as Foreclosures Rise (Source: Bloomberg)
Home prices fell in more than three- fourths of U.S. cities in the first quarter as foreclosures that sell at cut-rate prices devalued real estate. The median price of a single-family home dropped in 118 metropolitan areas out of 153 cities measured, the National Association of Realtors said in a report today. The biggest decline was in Biloxi, Mississippi, followed by Akron, Ohio.

ANALYSIS-Dollar vs commodities play strong on end of QE2
LONDON, May 10 (Reuters) - Prospects of an end to liquidity provided by the U.S. Federal Reserve have sent the inverse correlation between commodities and the dollar into overdrive and to many investors that means time to sell.
The inverse relationship has surged in recent days to levels not seen since early November when the U.S. central bank announced further liquidity boosting measures.

China Says It Will Try to Control Inflation, Boost Imports (Source: Bloomberg)
China said it faces challenges from rising consumer prices and will maintain a “prudent” monetary policy, according to a statement released today following the annual Strategic and Economic Dialogue with U.S. officials. “China will guide its monetary policy to return to normality from an anti-crisis status,” according to the statement distributed by the Chinese delegation to the talks in Washington. “It will try to meet reasonable demand for capital needed for economic growth, while focusing on removing inflationary monetary elements.”

China Assures Move Toward a More Flexible Yuan Policy, U.S. Official Says (Source: Bloomberg)
China assured the U.S. that it will continue moving toward a more flexible yuan exchange rate, a U.S. Treasury official said. Chinese officials meeting with their U.S. counterparts in Washington also agreed to allow U.S. and other foreign banks to sell mutual funds and provide financial custodial services in China, the official said in a telephone briefing with reporters today.

China Exports Fuel Wider-Than Estimated $11.4 Billion April Trade Surplus (Source: Bloomberg)
China reported a trade surplus that was more than three times larger than forecast in April as exports surged to a record, bolstering the U.S. case for faster yuan gains as officials from both nations meet for annual talks in Washington. The surplus widened to $11.4 billion and exceeded the forecasts of all 27 economists in a Bloomberg News survey. Exports climbed 30 percent to $156 billion while import growth slowed to 22 percent, the customs bureau said today.

China’s Commodity Deals Dropping as Oil, Copper Prices Rise (Source: Bloomberg)
China, the world’s biggest user of natural resources, is pulling back from commodities and energy acquisitions as the rest of the world pursues deals at the fastest pace since the financial crisis. China’s companies have spent $14.2 billion on acquisitions this year, down 30 percent from the same period last year, according to data compiled by Bloomberg. Worldwide the value of takeovers in the industry is $176 billion, the most at this time of the year since 2007. U.S. companies from Alpha Natural Resources Inc. (ANR) to DuPont are the largest buyers.

Toyota: output recovery still seen taking to year-end
TOKYO, May 10 (Reuters) - Toyota Motor Corp  on Tuesday denied a report its output would return to pre-quake levels two or three months earlier than expected, but said it will try to resume normal production as soon as possible.
Japan's automakers have slashed production after the massive earthquake in March crippled supply chains and damage to a major nuclear plant caused power shortages. 

Interest Rate on EU Aid Loans to Portugal to Be Between 5.5%-6%, Rehn Says (Source: Bloomberg)
Portugal will pay between 5.5 percent and 6 percent interest on the European portion of a 78-billion euro ($112 billion) bailout, comparable to the rate currently paid by Ireland. “We will follow the IMF pricing policy and we will have a small premium with a markup for risk, and this will lead to the interest to be somewhere on the scale of over 5.5 percent but clearly below 6 percent,” European Union Monetary Affairs Commissioner Olli Rehn told reporters in Strasbourg, France.

EU Aims to Raise Tariffs on Fast-Growing Nations Like China (Source: Bloomberg)
The European Union intends to increase tariffs on developing countries including China, India and Brazil under a plan to give only the neediest nations preferential access to the world’s biggest market. The European Commission proposed to deny faster-growing emerging economies tariff reductions granted through the Generalized System of Preferences, under which the EU imported 60 billion euros ($86 billion) of goods in 2009. That figure would fall to about 38 billion euros under the proposal to limit the trade benefits to 80 nations instead of the current 176, according to the commission, the EU’s executive arm.

Australia Shrinks Spending to Combat Inflation (Source: Bloomberg)
Australia’s government will end 23 years of spending growth to ease inflation from a mining boom and support the return to a budget surplus, even as it plans measures to help companies hurt by a record-high currency. The underlying cash deficit will narrow to A$22.6 billion ($24.4 billion) in the 12 months to June 30, 2012, less than half the A$49.4 billion gap this fiscal year, Treasurer Wayne Swan said in Canberra yesterday. The government plans A$22.2 billion in savings over the next four years that it projects will help deliver a A$3.5 billion surplus in 2012-13, an election year.

Singapore to Lure More Hedge Funds (Source: Bloomberg)
Singapore is attracting more global hedge funds that are drawn to Asia’s economic growth as the regulator seeks to “enhance the ecosystem” for managers. “We continue to see interest from fund managers as well as alternative investment managers, including global and indigenous hedge funds, which add diversity to the broader asset management industry,” Ng Nam Sin, assistant managing director of the Monetary Authority of Singapore, wrote in an e-mailed response to questions.

South Korea’s Jobless Rate Declines to a 3-Month Low As Economy Recovers (Source: Bloomberg)
South Korea’s unemployment rate fell to a three-month low as an economic recovery spurred hiring at manufacturers and health and social welfare service providers. The jobless rate fell to 3.6 percent in April from 4 percent in March, Statistics Korea said today in Gwacheon, south of Seoul. The median estimate in a Bloomberg News survey of 12 economists was for a rate of 3.8 percent.

Indonesia May Extend Interest-Rate Pause (Source: Bloomberg)
Indonesia’s central bank will probably keep interest rates unchanged for a third consecutive meeting to support the economy, allowing gains in the rupiah to reduce inflationary pressures.

FOREX-Euro volatile on Greek aid reports
LONDON, May 10 (Reuters) - The euro was steady versus the dollar in volatile trade on Tuesday as conflicting reports emerged of a potential new aid deal for debt-laden Greece to help it meet its funding requirements in the next two years.
The euro briefly gained, hitting the day's high at $1.4379 after Dow Jones News reported that Greece could receive aid totalling 60 billion euros as soon as June, but pulled back after Greece denied the report.

20110511 0949 Global Commodities Related News.

Corn (Source: CME)
US corn futures trim gains as traders wait for federal forecasters to issue monthly supply and demand estimates Wednesday. Nearby contract months cling to moderate gains as the market continues to recover from last week's slide in commodity prices. Deferred contracts slip slightly. "The market is not in the mood to have any major selloff because we have a report tomorrow and we just came off a big selloff," says John Kleist of CBOT July corn recently up 8 1/2c at $7.16 a bushel; December corn stumbles 1/4c to $6.57 1/4.

Wheat (Source: CME)
US wheat futures finish firmer on concerns about poor weather reducing global output. The markets extended gains as dryness remains unfavorable for crops in the southern US Plains and Europe. The northern Plains are too wet to plant spring wheat. Yet, futures finished off session highs as crop losses have been widely discussed. "You can only talk about the weather or the reduced crop in the southern Plains for so long," says Prime Agricultural Consultants. CBOT July wheat rises 8 1/4c to $7.98 3/4 a bushel; KCBT July gains 14c to $9.28 1/2; MGE July adds 14 1/2c to $9.59 1/4.

Rice (Source: CME)
US rice futures finish slightly higher after the USDA reported ongoing delays in planting due to rains. Monday's weekly crop report said 57% of the rice crop was sown, up eight percentage points on week. The 5-year average for that time of year is 76%. Development also is delayed as 45% of the rice crop has emerged, below the average of 57%. CBOT July rice rises 4 1/2c to $14.17/hundredweight.

Commodities rally not dead after last week's rout
NEW YORK, May 9 (Reuters) - The commodities price crash last week is a "temporary setback" that will likely be reversed by lasting weakness in the dollar and demand growth in emerging markets, a manager at a commodities fund said.
Robert Hyman, portfolio manager for Jefferies' long-only $118 million Commodity Strategy Allocation Fund investing in commodity futures and equities, said the inverse relationship between commodities and the dollar would return to near perfect and boost the complex.

Three Million Acres May Be Flooded in Louisiana (Source: Bloomberg)
Three million acres, an area almost the size of Connecticut, may go under water as the Mississippi River flooding moves south and threatens Louisiana. “Based on inundation maps we are looking at, about 3 million acres in Louisiana will be under water,” Louisiana Governor Bobby Jindal said at a press conference in Baton Rouge. About 2,500 people inside the floodway may be affected and 22,500 may be affected by backwater flooding, he said.

Top funds dealt double-digit losses by commods crash
NEW YORK, May 9 (Reuters) - Several commodity hedge fund titans suffered double-digit losses last week as oil fell by a near-record $16, money managers who invest in the funds told Reuters on Monday.
While some of the losses will likely be recovered after Monday's price rebound of nearly $7 a barrel, last week's fund results underscore how oil's sharp fall caught some top traders off guard.

Wheat rises for 3rd day, corn dips on planting progress
SINGAPORE, May 10 (Reuters) - Chicago wheat rose 1 percent on Tuesday, notching up its biggest two-day gain in three weeks, as dry weather in parts of Europe and the U.S. crop areas continued to buoy the market, while soy added half a percent in a third straight session of gains. "There are weather concerns with wheat, we have issues in the U.S. hard red winter wheat belt and unusually warm conditions in Europe," said Garry Booth, a trader with MF Global Australia.

Philippine posts fastest Q1 yr/yr farm growth in 7 yrs
MANILA, May 10 (Reuters) - Philippine farm output grew 4.1 percent in the first quarter from a year earlier, the fastest first-quarter growth since 2004, as rains boosted corn harvests, and growth was set to pick up further, Agriculture Secretary Proceso Alcala said.
Unmilled rice output rose 15.6 percent in the March quarter from a year earlier to 4.037 million tonnes, more than half the first-half crop forecast, and corn production jumped 19.5 percent to 1.914 million tonnes.

US farmers make giant leap in corn seedings
CHICAGO, May 9 (Reuters) - U.S. farmers made a giant leap in seeding their rain-delayed corn crop last week, helping to allay concerns that time was running out for optimal yields to replenish extremely low stocks.
In a major surprise, the U.S. Agriculture Department said on Monday that 40 percent of the crop had been seeded as of Sunday, up from a worrisome 13 percent the previous week and coming within striking distance of the five-year average of 59 percent.

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.

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.

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.

Warm, dry weekend promotes planting in western US Corn Belt
CHICAGO, May 9 (Reuters) - A warm, dry weekend over most of the western U.S. Corn Belt provided an open planting window for farmers, but rains will move in at mid-week across the belt, a forecaster predicted Monday.
"Iowa and Nebraska had enough open weather over the weekend to allow for good planting progress," said Telvent DTN forecaster Mike Palmerino, adding that clear skies also reigned over northern and central Illinois and southern Minnesota.

US Crop Progress: Farmers Make Huge Strides In Corn Planting (Source: CME)
Farmers made huge strides planting corn in the western Midwest last week after cold, wet weather delayed earlier field work, according to government data. The crop was 40% planted as of Sunday, up from 13% a week earlier, the U.S. Department of Agriculture said in a weekly crop progress report. That beat expectations that plantings would be about 30% complete but still lagged the average of 59% for that time of year. Warmer, drier weather in the western Corn Belt allowed farmers to make significant progress. In Iowa, the country's top corn-producing state, farmers had sown 69% of the crop as of Sunday, up from 8% a week earlier and on par with the five-year average. Farmers had planted 57% of the crop in Nebraska, up from 15% a week earlier and behind the average of 62%. "We made some historic strides in Iowa. You planted 61% of the crop in just a few days," said Don Roose, president of U.S. Commodities, an Iowa-based brokerage firm. Yet, farmers in the eastern Midwest continued to struggle with poor weather.
Indiana's crop was just 4% planted as of Sunday, below the average of 49% for that time of year, and Ohio's crop was 2% planted, below the average of 54%, according to the USDA. The lack of progress in the eastern Midwest will likely keep the corn market on edge, as traders worry that planting delays will reduce the size of next fall's harvest, Roose said. Traders will continue to watch weather forecasts closely for signs of improving weather. Development of the crop also still lags behind normal. Overall, 7% of the country's corn had emerged as of Sunday, up from 5% a week earlier and below the average of 21% for that time of year, according to the USDA. Farmers need to harvest a large crop next fall to replenish inventories that are expected to drop to a 15-year low this year. Concerns about strong demand draining supplies pushed corn futures to record highs last month. "It truly is the eastern Corn Belt vs. the western Corn Belt," Roose said.
Farmers are less concerned about planting soybeans because that crop can be sown later in the spring without risking yield losses. Corn tends to produce lower yields in many areas if it is planted past the middle of May. Soybeans were 7% planted as of Sunday, below the average of 17% for that time of year. In Iowa, 10% of the crop was in the ground, behind the average of 18% for that time of year. The USDA did not report nationwide data for soybeans last week. Spring wheat planting also advanced after a slow start due to cold, wet weather in the northern Plains. Planting was 22% complete as of Sunday, up from 10% a week earlier and down from the average of 61%. In North Dakota, the top producer of spring wheat, farmers had planted 7% of the crop, up from 1% last week and below the average of 51%. More progress was made in South Dakota, where planting was 59% complete, up from 22% a week earlier and below the average of 85%.
Spring wheat, prized for its high protein content, is milled into flour used to make bread and blended with other, lower-quality varieties of wheat. Users of the grain worry farmers will sow fewer acres of spring wheat than previously expected due to the planting delays. The condition of winter wheat, meanwhile, continued to deteriorate due to a severe drought in the central and southern Plains. Overall, winter wheat was rated 33% good to excellent, down one percentage point from last week and from 66% a year ago. In Kansas, the country's top winter-wheat-producing state, the good-to-excellent rating dropped to 18% from 21% last week. Kansas and other Plains states grow hard red winter wheat, which is milled into flour used to make bread.

Crops, Oil Refineries Threatened By Mississippi River Flooding (Source: CME)
The surging Mississippi River is flooding hundreds of thousands of acres of farmland and limiting traffic along the waterway, delaying fuel shipments. Fields of recently planted corn, cotton and soybeans along the Mississippi Delta were inundated as the river overflowed, government officials said. Soaked soil is forcing thousands of other farmers to delay plantings this year. "I really can't compare it to anything. This is unprecedented territory right here," said Andy Prosser, head of marketing at the Mississippi Department of Agriculture and Commerce. The real problem for growers will be when the waters recede. "They don't know what kind of sand or silt, debris, may have been deposited on their farmland," said Tom Womack, a spokesman for the Tennessee Department of Agriculture. He estimated that 500,000 acres are already underwater in the state. The waters are likely to have washed away seeds and mineral-rich topsoil.
The U.S. Department of Agriculture has said U.S. stockpiles of key crops such as cotton and corn are at or near historic lows, due to rising global demand. July corn futures recently traded 1.2% higher on the Chicago Board of Trade, at $7.15 1/2 a bushel, while July delivery soybeans were up 0.7% at $13.44 a bushel. Cotton futures for July delivery were up 0.6% to $1.4631 a pound on IntercontinentalExchange. The surging river is also threatening energy production and transport throughout the South. Oil refineries are bracing for potential shutdowns and disruptions to fuel shipments ahead of the floodwaters now moving toward the Louisiana refining corridor. Motiva Enterprise LLC's 237,000 barrel-a-day Norco, La., refinery is preparing for supply disruptions due to the opening of flood gates, according to a spokesman for Royal Dutch Shell PLC, which is part of a joint venture operating the plant. Fuel products such as gasoline and diesel are distributed through pipelines, rail links and tankers.
The floods, which have already stalled some river traffic, could also force companies to halt pipeline flows or lead to congestion on railroads. U.S. gasoline stockpiles have fallen for 11 straight weeks, and analysts expect further declines in data due for release by the Energy Department on Wednesday. The floods, should they curtail refining in the region, could help push average U.S. retail gasoline prices above $4 a gallon, straining the budgets of consumers and businesses and potentially weighing on the economic recovery.

Sugar, coffee rise as commodities rebound
LONDON, May 10 (Reuters) -  ICE sugar and arabica coffee bounced higher on Tuesday as commodity markets extended a rebound after last week's sharp sell-off, while ICE cocoa prices were steady.Sugar futures rose on investor buying in early trading, in sympathy with a rebound across commodity markets. However, the fundamental outlook for global sugar supplies remained bearish as the harvest in the centre-south of Brazil, the world's top producer and exporter, gathered pace, and due to larger than expected Thai output.

Indonesia scraps levy for coffee bean exports - govt
JAKARTA, May 10 (Reuters) - The trade ministry has lifted an levy for coffee bean exports that will cut costs for exporters and simplify paperwork to ship beans overseas, said a senior official at the trade ministry official.
Previously, coffee exporters had to pay 30 rupiah ($0.004)per kg as an export levy to the Indonesian Coffee Exporters Association (AEKI) as a requirement to get approval from the Trade Ministry to export coffee beans.

Vietnam Coffee-May export seen down 45 pct on thin stocks
HANOI, May 10 (Reuters) - Vietnam's coffee exports for May loading could fall to between 80,000 and 100,000 tonnes from around 130,000 tonnes last month, as domestic stocks were thinned by previously strong shipments to gain from high prices, traders said on Tuesday.
Lower export volumes from Vietnam, the world's second-largest coffee producer after Brazil, will exacerbate supply concerns and keep global robusta prices on an uptrend, after gaining in recent sessions on the back of ICE arabica, which hit a 34-year peak on May 3. [SOF/L]

Turkey 2011 sugar beet output seen at 14 mln tonnes-attache
WASHINGTON, May 9 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Turkey:  "The Sugar Board decreased the A sugar production quota to 2.2 million tonnes this marketing year to avoid a build-up of stocks. In response to lower production quotas, the MY 2011 sugar beet production in Turkey is estimated at 14 million tonnes. MY 2011 total centrifugal sugar production is estimated at just under 2.3 million tonnes. In 2010, bid results from attempted privatization were cancelled by the Council of State and privatization has been halted."

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.

Oil Trades Near Highest in a Week on Mississippi Floods and U.S. Earnings (Source: Bloomberg)
Oil traded close to a one-week high in New York as flooding of the Mississippi River stoked speculation fuel output will be disrupted and amid optimism over the U.S. economic recovery. Futures were little changed after advancing 1.3 percent yesterday as the flood moved south from Memphis, threatening refineries and shipping traffic before it empties into the Gulf of Mexico in about two weeks. U.S. equities strengthened as companies raised earnings forecasts, sending the Standard & Poor’s 500 Index higher for a third day.

Crude Oil Rises to Four-Day High on Mississippi Floods, Rally in Equities (Source: Bloomberg)
Crude oil rose to a four-day high as concern increased that flooding of the Mississippi River will disrupt fuel output and as equities climbed. Futures advanced 1.3 percent as the flood moved south from Memphis, threatening refineries and shipping traffic before emptying into the Gulf of Mexico in about two weeks. Stocks strengthened as companies raised earnings forecasts, sending the Standard & Poor’s 500 Index up for a third day.

PRECIOUS-Gold rises as dollar retreats, focus on Greece
LONDON, May 10 (Reuters) - Gold was set for a third daily rise on Tuesday, after a retreat in the dollar helped reverse earlier losses, while concern about Greece's debt crisis was expected to insulate the price from any severe declines.
A sharp rise in margins on U.S. oil futures dented the broader commodities complex but with so much investor focus on Greece and other indebted euro zone member states, gold was able to rally for a third day.

Gold Rises for Third Day as Europe Debt Concern Fuels Demand; Silver Gains (Source: Bloomberg)
Gold rose on concern that Europe’s debt crisis will drive the euro lower, spurring demand for precious metals as alternative assets. Silver had the biggest two-day rally in six months after plunging 27 percent last week. Standard & Poor’s yesterday downgraded Greece’s credit rating for the fourth time since April 2010, signaling that the region’s debt crisis is escalating. Gold advanced for the third straight session.

METALS-Copper rises on risk appetite following China data
LONDON, May 10 (Reuters) - Copper climbed on Tuesday, as robust China trade figures burnished demand expectations for the metal used in power and construction offsetting news that headline imports in April fell.
Benchmark copper  on the London Metal Exchange traded at $8,939.75 a tonne at 0956 GMT, versus $8,890 a tonne on Monday's close.

China to cut copper, steel, aluminium capacity in 2011
BEIJING, May 10 (Reuters) - China will close down 291,000 tonnes of outdated copper smelting capacity this year as part of a wider crackdown on 18 heavy and polluting industries, the country's industry ministry said on Tuesday.
The Ministry of Industry and Information Technology will also close 600,000 tonnes of outdated aluminium smelting capacity by the end of the year, it said in a statement posted on the Chinese government website

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.

Chile April copper export revs up 22 pct yr/yr
SANTIAGO, May 9 (Reuters) - Chile's copper export revenues  rose 22 percent to $3.728 billion in April from a year ago, boosted by strong prices for the metal, the central bank said on Monday.
Last month, the government reported that copper export revenue was down from $3.876 billion for March. Chile is the world's top copper producer, mining about a third of global supply.

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.

Nickel outlook least promising due to supply -BNP Paribas
SYDNEY, May 10 (Reuters) - BNP Paribas on Tuesday singled out nickel as the lone price under performer this year among base metals commodities, despite seeing a supply deficit for the second year running.
The bank's senior metals markets strategist Stephen Briggs forecast each of the major London Metal Exchange-traded metals to finish the fourth quarter of 2011 higher than when they started, except for nickel, which Briggs said is headed for an 11 percent drop.

Japan steelmakers bullish in output plans after quake
TOKYO, May 10 (Reuters) - Japanese steelmakers are bullish in their output plans for this quarter, counting on demand related to post-quake reconstruction to mostly offset weakness in the auto sector, a government survey showed on Tuesday.
Some analysts warned, however, that a large portion of this quarter's production may eventually end up as exports given the overall soft tone of demand in the domestic market.

Major market developments in April
LONDON, May 9 (Reuters) - Zinc prices fell in April and more sharply last week in a rout across commodities and other asset classes and vast inventories of the metal are likely to keep the market under pressure in coming months.
"We see reasonably substantial surpluses this year and next and we see prices softening," said Andrew Thomas of consultants Brook Hunt, the metals arm of Wood Mackenzie.

Major market developments in April
LONDON, May 9 (Reuters) - Lead prices lost ground in April and fell further in early May in a broad-based sell-off and, despite recovering some lost ground, softer fundamentals may peg them back near term.
"I think the lead market still looks a bit vulnerable, there's no particular shortage of supply," said David Wilson, analyst at Societe Generale.

20110511 0946 Soy Oil & Palm Oil Related News.

Soy Oil chart reading : pullback correction downside biased. 

Soybeans (Source: CME)
US soybean futures climb, supported by speculative buying tied to spillover support from neighboring grains and outside markets. Higher equity and crude oil futures and weakness in the dollar index attracted speculative buying, with traders covering positions from last week's sharp declines ahead of Wednesday's USDA crop report. Slow soybean planting progress at 7% complete, well below the five-year average of 17% added strength, but additional gains were limited by declining demand amid increased competition from record South American soy harvests, analysts said. CBOT July soybeans settled up 3c or 0.2% at $13.38 per bushel.

Soybean Meal/Oil (Source: CME)
US soy product futures were mixed, with soyoil rising on the supportive influence of climbing crude oil futures. Soymeal finished near unchanged levels struggling to find direction in the absence of fresh fundamental news, analysts said. Supportive soymeal cash basis levels in the western Midwest limited declines in futures, analysts said. CBOT July soymeal ended down $0.10 or 0.03% at $350.30 per short ton, and July soyoil rose 0.51c or 0.9% to 56.80 cents per pound.

Palm prices rise as sell-off seen overdone; data eyed
KUALA LUMPUR, May 10 (Reuters) - Malaysian palm oil futures rose for the second session in a row on Tuesday, as perceptions grew that last week's commodity sell-off was overdone, and investors awaited key data from the United States later this week. "Palm oil is reacting with the rest of the commodities, and there is some short-covering too," said one analyst. "There was also a technical rebound ... some economies are not as bad as it seems."

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.

Brazil soy crop 97 pct harvested - Celeres
SAO PAULO, May 9 (Reuters) - Harvesting of Brazil's record 72.55 million-tonne soybean crop is drawing to a close with the help of dry weather across the grain belt, analysts Celeres said on Monday.
In its latest weekly report, Celeres said that 97 percent of the new crop has been gathered, up from 95 percent the week prior but behind the 99 percent at this time a year ago.