Monday, May 16, 2011

20110516 1821 FCPO EOD Daily Chart Study.

FCPO closed : 3255, changed : +6 points(continuous chart -19 points), volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : rising, buyer seller battling.
Support : 3250, 3200, 3150, 3100 level.
Resistance : 3270, 3300, 3350, 3420 level.
Comment :
FCPO closed recorded small gain with lower volume changed hand ahead of tomorrow public holiday while soy oil last Friday overnight closed lower and currently rebounding little higher. However crude oil are currently trading down nearly 2%.
News wise, both ITS and SGS cargo surveyor reported higher export data up 27.6% and 33.2% respectively while Reuters reported that Bangladesh tenders to buy 4,000 tonnes of soy oil and 4,000 tonnes of palm olein showing some sign of demand recovery.
Daily chart formed an up doji bar candle closed little below middle Bollinger band level after market opened lower, traded side ways and climbed upwards followed by last minutes intraday profit taking pressed price downward to closed off the high of the day.
Chart reading still suggesting a side way range bound market development testing support and resistance level with MACD indicator having positive crossed up.  
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.

20110516 1728 FKLI EOD Daily Chart Study.

FKLI closed : 1534 changed : -10 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : rising, buyer taking small exposure.
Support : 1530, 1515, 1500, 1485  level.
Resistance : 1540, 1550, 1565, 1580 level.
Comment :
FKLI closed recorded loss with lower volume transacted surrendered partial of last Friday gains doing 2 points discount compare to cash market that closed at the low recorded loss while regional markets trading negatively and U.S. last Friday closed lower as U.S. dept limit deadline concern raised investor worry lead market to trade in negatively.
Daily chart formed a down doji bar candle with longer upper shadow closed between middle and upper Bollinger band level after market opened lower, traded higher and fall downwards to closed near the low of the day.
Technical chart reading suggesting a side way range bound market development testing support and resistance level with MACD indicator having positive crossed up.
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.

20110516 1604 Global Market & Commodities Related News.

Stocks, euro dip on profit taking; bonds advance
HONG KONG, May 16 (Reuters) - Asian equities dipped and the dollar rose to a six-week high against the euro with further gains seen as renewed concerns of a possible euro zone debt restructuring prompted market players to reduce risk.
The U.S. dollar has turned strong. Investors who have gone long riskier assets, such as commodities, equities and high-yield currencies, now have to reposition and take profit," said Robert Hsieh, a vice president of Shinkong Investment Trust in Taipei.

U.S. corn surges 2 pct on weather concerns
SYDNEY, May 16 (Reuters) - U.S. corn futures surged more than 2 percent marking the biggest one-day rise in a week, as investors focused on rain and flooding that are slowing the pace of crop planting in the U.S. corn belt.  "The greatest delays are over eastern areas (Indiana and Ohio)," Palmerino said in a weather update.

Honduras ups 2010/11 coffee export estimate 4.3 pct
TEGUCIGALPA, May 13 (Reuters) - Honduras is expected to export 3.68 million 60-kg bags of coffee during the 2010/11 harvest, 4.3 percent more than previously forecast, an official of the local coffee exporters' association said on Friday.
"These exports are due to good weather that has helped harvesting, the stimulus of a good world price, fertilizer supply programs and new areas that have begun production," said Miguel Pon, executive director of the Honduras Coffee Exporters' Association in an interview

Two sugar groups see global surplus in 2011/12
LONDON, May 13 (Reuters) - Two leading sugar groups forecast a widening world sugar surplus in 2011/12, on larger-than-expected Thai output, signalling further downside risk after prices tumbled around 40 percent from a 30-year high.
The global sugar surplus may exceed 3 million tonnes in 2011/12, up from  0.8 million tonnes in 2010/11, suggesting more bearish pressure on prices, the International Sugar Organization (ISO) said in its latest quarterly report.

Ukraine may avoid 2011 grain export curbs
KIEV, May 13 (Reuters) - Ukraine will not impose curbs on grain exports in the coming market season if the harvest is satisfactory, Prime Minister Mykola Azarov said on Friday, adding current forecasts pointed to a good 2011 crop.
Azarov acknowledged that grain quotas, introduced last year by Ukraine after severe drought, badly damaged its reputation as a "reliable exporter" to world grain markets.

Ivory Coast conflict cuts rubber output
ABIDJAN, May 13 (Reuters) - Buyers of Ivorian rubber will get less than promised this year after a violent power struggle kept farmers from tending their plantations, an industry representative told Reuters on Friday.
Ivory Coast, Africa's largest producer of the key ingredient in tires, tubes and elastics, sells chiefly to buyers in France, Italy, Belgium, China and Malaysia. The country accounts for just over two percent of global natural rubber supplies.

Bioethanol may win in crunch time for EU biofuels
BRUSSELS/SEVILLE, May 13 (Reuters) - A divisive European debate over the green credentials of biofuels has stalled investment, but the stalemate may soon be over for advanced biofuels and some types of bioethanol.
The debate over biodiesel, however, looks set to rage on.

U.S. oil slips more than $1 as dollar index climbs
SINGAPORE, May 16 (Reuters) - U.S. oil futures slipped to as low as $98.35 a barrel as the dollar index rose to a six-week high on worries that Greece may restructure its sovereign debt.   "We market participants are always waiting for any announcement on interest rates in the U.S. and Europe to give us an idea on the future direction of markets," Hasegawa said. "Overall, interest rates are likely to go up faster in Europe than in the U.S."

Argentina says refinery workers accept wage deal
BUENOS AIRES, May 13 (Reuters) - Argentine oil refinery workers struck a wage deal with companies on Friday, a spokeswoman at the Labor Ministry said, averting the resumption of a nationwide strike.
The workers downed tools early on Thursday, only to suspend their protest later in the day for 24 hours to engage in talks. They were threatening output at the country's main oil refineries, which have a total refining capacity of roughly 600,000 barrels per day (bpd).

Top US Republican rejects higher taxes on oil firms
WASHINGTON, May 15 (Reuters) - The top U.S. Senate Republican on Sunday rejected a proposal to scale back tax breaks for big oil firms, calling it a political maneuver.
Senate Republican Leader Mitch McConnell said the Democratic plan to repeal major tax incentives would "raise the price of gas at the pump, send jobs overseas" and make the United States even more dependent on oil imported from other countries, such as Venezuela.

London copper moves flat on firmer dlr and euro debt worry
SINGAPORE, May 16 (Reuters) - Copper dropped almost a percent in Shanghai reversing the previous session's gains, while London prices were mostly flat, as a firm dollar weighed on prices amid euro zone debt worries. "Shanghai copper has fallen more than London this morning because it had a big rally on Friday, but London did not catch up in proportion after Shanghai closed," said China Futures Co analyst Yang Jun.

N. American aluminum shipments gain 7.9 pct in March y/y
NEW YORK, May 13 (Reuters) - Demand for U.S. and Canadian aluminum products, measured as shipments from domestic producers plus imports, were up by 7.9 percent in March over March last year, and rose 10.6 percent over February, an aluminum industry group said in its latest report.
For the year to date through March, aluminum shipments were up 8.9 percent, the report said.
Total demand increased to an estimated 1.718 billion lbs in March from 1.591 billion lbs in March 2010, and was up from 1.553 billion lbs shipped in February, according to the Aluminum Association's Aluminum Situation report.

U.S. April aluminum output gains 13.6 pct yr/yr
NEW YORK, May 13 (Reuters) - The annual rate of primary U.S. aluminum production increased 13.6 percent to 1,965,172 tonnes in April from 1,729,662 tonnes in April 2010, and grew by 3.8 percent from March's annual production rate of 1,906,619 tonnes, the Aluminum Association said in its latest report.
For the year through April, the annual rate of production was up at 1,869,424 tonnes, a 9.6 percent gain over the 1,705,320 tonnes produced in the comparable 2010 period.

Copper demand from China to stay strong- Aurubis
HAMBURG, May 13 (Reuters) - Copper demand from China is likely to remain strong despite the country's moves to slow growth to control inflation, the CEO of Europe's largest copper producer Aurubis  said on Friday.
China's moves to restrain its economy would only slow its rate of growth, which would still remain at a high level, Bernd Drouven told a telephone press conference after the company posted a sharp rise in earnings on Friday.

Gold inches lower as firm dollar weighs
SINGAPORE, May 16 (Reuters) - Gold inched lower pressured by a firmer dollar as fears about the euro zone debt crisis deepened ahead of the bloc's finance ministers' meeting, which has been overshadowed by the arrest of the International
Monetary Fund chief.  "Gold could reverse recent falls and stand above the support
level of $1,500 over the next week, as safe-haven buying could resume on re-ignited euro zone sovereign debt concerns," said Natalie Robertson, commodities strategist at ANZ. 

20110516 1114 Global Market & Commodities Related News.

GLOBAL MARKETS: Dollar gains, stocks dip on euro zone debt concerns
HONG KONG, May 16 (Reuters) - The U.S. dollar hovered near a six-week high against the euro and stocks dipped as renewed concerns of a possible euro zone debt restructuring prompted market players to reduce risk.
Having gained by more than four percent in less than two weeks, the dollar  extended its biggest winning streak against a basket of other currencies this year helped by violent swings in commodities and troubles in the euro zone.

US inflation hits 2-1/2 year high, seen peaking
WASHINGTON, May 13 (Reuters) - Gasoline and food prices hoisted U.S. inflation to a 2-1/2-year high in April, but there was little sign of a broader pick-up in consumer prices that would trouble the Federal Reserve.
The pace of food and fuel price rises slowed considerably from March, suggesting inflation pressures may be peaking.

Thai Oil, Petronas Chem to outshine Southeast Asia peers
BANGKOK/KUALA LUMPUR, May 12 (Reuters) - In the coastal Thai city of Sriracha, Thai Oil's  275,000-barrel-per-day refinery is running at full capacity because long-term demand is expected to jump following Japan's earthquake.
Southeast Asia's refinery and petrochemical sector, which was already enjoying a strong outlook thanks to high oil prices and firm global demand, has received an additional boost from the March earthquake and subsequent nuclear crisis.

US consumers feel pinch of gasoline costs in April
WASHINGTON, May 12 (Reuters) - The U.S. economy struggled to gain momentum early in the second quarter, with retail sales posting their smallest rise in nine months in April and  wholesale prices increasing more than expected.
Other data on Thursday showed new claims for unemployment benefits fell 44,000 last week to 434,000 as one-time factors that had led to a spike in the prior week reversed. But the level of claims still suggested hiring was softening.

OIL: Crude down nearly 1 pct below $99 on stronger dollar
TOKYO, May 16 (Reuters) - U.S. crude futures were down nearly 1 percent below $99 a barrel, erasing Friday's gains as the dollar strengthened against the euro amid concern about Greece's debt problems.
London Brent crude for June delivery, which expires at the end of Monday trading, stood down 53 cents at $113.30, after falling as much as 88 cents to $112.95 earlier.

NATURAL GAS: Natural gas reverses course, ends up on rig decline
NEW YORK, May 13 (Reuters) - Front-month U.S. natural gas futures reversed course and ended higher on Friday, backed by a sharp gas rig count decline despite an early sell-off on ample supplies and fairly mild U.S. weather forecasts.
"The rig count decline definitely triggered some buying, but I think the growing storage deficit is also supportive," a southern-based commodity trading advisor said.

EUROCOAL : July ARA trades at $120.50/T, unchanged
LONDON, May 13 (Reuters) - European coal prices were stable on Friday during a day of quiet trading, while utilities had plentiful stocks on hand.
"There's been a minimal amount of utility buying, a few banks and traders in the market, but on the whole it's quiet and fairly balanced," one European utility source said.

COMMODITIES: Oil ends up after rollercoaster ride; CRB rebounds
NEW YORK, May 12 (Reuters) - Battered commodity markets found some stability on Thursday after a week of rollercoaster trade, with prices pulling out of steep early losses after the dollar gave up early gains.
"We're getting concerns about slowing growth, rising inflation, rising interest rates, money leaving the commodities sector," said Edward Meir, senior commodity metals analyst at MF Global in New York.

20110516 1011 Global Economic Related News.

S.Korea: Bank of Korea unexpectedly left the benchmark interest rate unchanged at 3%, it said in Seoul. The decision was predicted by two of 14 economists surveyed by Bloomberg News. (Source: Bloomberg)

HK: ‘Overheating’ risk looms after economy expands 7.2%
Hong Kong’s economy expanded a more-than-forecast 7.2% in the first quarter from a year earlier as the government wrestled with accelerating inflation and the threat of a property bubble. The increase in GDP was the biggest in a year and compared with a revised 6.4% gain in the fourth quarter. (Bloomberg)

Greece: To plead for aid in talks
Greece today will plead for a boost in its EUD110bn financial lifeline from European governments. The IMF. Europe’s donor countries, led by Germany, are demanding deeper budget cuts in exchange for granting Greece extra aid or giving it more time to pay back official loans, and are weighing whether to make bondholders share the costs. (Bloomberg)

E.U: Economic growth accelerated to the fastest pace since the second quarter of 2010 powered by forecast-topping expansion in Germany and France that offset the impact of tougher austerity measures from Ireland to Spain. GDP in the 17-member euro area rose 0.8% from the fourth quarter, when it increased 0.3%, the European Union's statistics office in Luxembourg said in a statement. German GDP jumped 1.5% from the fourth quarter and the French GDP rose 1% (Source: Bloomberg)

US: Obama says default may ‘unravel’ global finances
US President Barack Obama said failure to raise the US debt ceiling by early August might disrupt the global financial system and plunge the nation into another recession. He is reaching out to lawmakers to win approval of an increase in the debt ceiling. The government projected this month that the USD14.3tn debt limit will be reached today. (Bloomberg)

US: CPI rise on fuel, food costs
The cost of living in the US rose in April, led by increases in food and fuel that are starting to filter through to other goods and services. CPI increased 0.4%. Excluding food and energy, the core gauge rose 0.2%. (Bloomberg)

US: Housing probably lagged behind factories
Sales and construction of US homes probably hovered in April around the lows reached during the recession, while factories kept churning out more goods, a reminder that manufacturing remains the engine of the recovery, according to economists surveyed by Bloomberg. Sales of existing homes is likely to have risen 2% to a 5.2m annual pace while industrial production is forecasted to grow for a sixth consecutive month. (Bloomberg)

U.S: To raise the US debt ceiling by early August. Obama is reaching out to Republicans and Democratic lawmakers to win approval of an increase in the debt ceiling. The government projected this month that the $14.3 trillion debt limit will be reached tomorrow. This is to avoid the disruption to the global financial system. (Source: Bloomberg)

US: Retail sales up, consumer sentiment down. Retail sales rose in April at the slowest rate in 9 months, while consumer sentiment fell last week, highlighting the impact of increasing petrol prices in the US economy. According to the US Commerce Department figures, purchases noted a rise of 0.5%, the smallest gain since July last year, after a high than expected increase in March of 0.9%. The Bloomberg Consumer Comfort Index dropped to -46.9 in the period leading up to May 8, the lowest reading since March. (Source: Bloomberg)

20110516 1010 Malaysia Corporate Related News.

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

39% of investments ‘realised’
About 39% or RM27bn of the RM69.48bn investments committed to Iskandar Malaysia has been realized in the first phase of the project’s development, according to Iskandar Regional Develoment Authority (IRDA) CEO Ismail Ibrahim.”This is the investment figure we received from 2006 to 2010,” he told reporters at the press conference on the Wealth of Iskandar Malaysia Conference to be held from 24 to 26 May. IRDA had attracted RM69.48bn of committed investments for the first phase, surpassing its target of RM47bn. (StraBiz Week)

DRB-HICOM keen on merger between Bank Muamalat and BIMB
DRB-HICOM said its expression of interest to Bank Islam Malaysia (BIMB) was only in exploring a possible merger between it and Bank Muamalat and not in selling its 70% stake in Bank Muamalat to BIMB. A proposed merger would witness the emergence of a mega Islamic bank and was in line with the Government’s call to reinforce Malaysia’s position as a leading international centre for Islamic finance and create a home grown bank, it said in a statement. (StarBiz Week)

MEGB seeks RM100m from STMB
Masterskill Education Group, which has won its defamation suit against Sistem Televisyen Malaysia (STMB) for a total of RM250,000, is appealing to the High Court for the damages to be raised to RM100m. The education group, in its filling to Bursa Malaysia, said it had instructed its solicitors to file “a cross appeal on the quantum of damages awarded in order to enhance and increase the quantum to RM100m”. (StraBiz Week)

MSIG to better RM1bn mark in gross premium this year
General insurer MSIG Insurance is well placed to pass the RM1bn mark in gross written premium this year. Its CEO for the general insurance operations, Chua Seck Guan said the successful integration with Hong Leong Assurance (HLA) general insurance business in October 2010 has also elevated the company’s ranking to the top spot in fire and marine cargo insurance in Malaysia. (Malaysian Reserve)

Price-hit Supermax to review earnings target
Supermax Corp plans to conduct a review on its earnings target in the second half of this year, after its profitability was hit by the combined impact on higher latex price and stronger RM against the USD. The country’s second-largest rubber glovemaker posted a net profit of RM24.4m for the 1QFY11, despite revenue for the period rising 9.4% to RM241.37m. 1Q10 net profit was RM51.47m while revenue totaled RM220.65m. Supermax had targeted a 15% to 20% earnings growth in FY2011 but these quarterly figures suggest that it might be a challenge to achieve such a target. (Malaysian Reserve)

PTP posts fastest growth
MMC Corp’s Port Tanjung Pelepas (PTP) has emerged as the fastest growing container port in the first quarter of 2011 and is on track to handle 7.5 million twenty-foot equivalent units (TEUs) for the year. In the first quarter of 2011, PTP’s container traffic grew by 1.79 million TEUs, or 18% compared with a year ago. MMC group managing director, Datuk Hasni Harun, said the remarkable growth was mainly due to higher volume from its main customers Maerck Line and Evergreen Group. (StarBiz)

Sunway: To secure site of Jalan Duta complex. Sunway Group is said to have won a competitive bid to acquire the site of the Jalan Duta government complex. Sunway could be paying more than RM500m for the site and construct new offices for the IRB and Customs Department elsewhere. (Source: The Edge Financial Weekly)

MAS: Firefly takes delivery of 3rd 737 for KK ops. Firefly, subsidiary of MAS, took delivery of a third Boeing 737-800 aircraft to be stationed in Kota Kinabalu, officially marking the start of the city as its eastern hub. (Source: Malaysian Reserve)

IOI: Allegations against IOI 'just not true'. IOI Corp Bhd re-iterated that in October 2010, an RSPO-certified auditor SGS investigated the allegations and concluded the deforestation complaints were baseless. (Source: Business Times)

ECM, Kenanga: Close to sealing deal. ECM Libra Financial Group Bhd, whose substantial shareholders are long known to be looking to divest their equity stakes, is close to sealing a merger deal with K&N Kenanga Holdings Bhd. (Source: The Edge Financial Daily)

FDI: Good response to Invest Malaysia NY. A total of 56 US fund managers have confirmed participation at the inaugural Invest Malaysia New York 2011 (IMNY 2011), which will be held tomorrow. (Source: Business Times)

Property: Demand for condos in KL. Condominium living is relatively new to KL and well designed projects are seeing strong sales performance, said Christopher Boyd, executive chairman of CB Richard Ellis Malaysia. The take up rate of condos in 1Q11 was between 65% and 88% in prime areas. (Source: Malaysian Reserve) 

20110516 1005 Global Market Related News.

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

Asian Stocks Drop on Global Economic Concern Over U.S., Greece (Source: Bloomberg)
Asian stocks dropped on concern Greece’s debt crisis may worsen and after President Barack Obama said failure to raise the U.S. debt ceiling by early August might disrupt the global financial system. BHP Billiton Ltd. (BHP), the world’s largest mining company, fell 1.9 percent in Sydney after gold and metal prices dropped. Rio Tinto Group, the second-biggest by sales, sank 1.5 percent. Toyota Motor Corp. (7203), the world’s No. 1 carmaker, slid 1.5 percent in Tokyo, while Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest publicly traded bank, lost 0.3 percent.

Stocks, euro rise after upbeat growth data
LONDON, May 13 (Reuters) - World stocks rose and the euro rose from a six-week low against the dollar as upbeat German and French growth data and favourable European corporate earnings prompted investors to buy back risky assets. Germany's economy grew by a stronger-than-expected 1.5 percent  in the first quarter while the French economy grew faster than expected in the same period thanks to a strong pick-up in business investment, expanding 1.0 percent from the final quarter of 2010.

U.S. Stocks Decline, S&P 500 Index Records Second Straight Week of Losses (Source: Bloomberg)
U.S. stocks declined, giving the Standard & Poor’s 500 Index a second straight weekly loss, as concern over Europe’s debt crisis deepened and inflation reports spurred speculation global interest rates will rise. Citigroup Inc. (C), the most-traded U.S. stock in 2011, led financial shares in the S&P 500 to the biggest drop among 10 industries, falling 8.1 percent after a 1-for-10 reverse split. Cliffs Natural Resources Inc. (CLF) and Freeport-McMoRan Copper & Gold Inc. (FCX) slumped at least 3.7 percent as data from China increased expectations for higher interest rates. Boston Scientific Corp. (BSX) plunged 11 percent, more than any other S&P 500 company, after saying its chief executive officer will retire.

Geithner Says Default Damage May Be ‘Irrevocable’ (Source: Bloomberg)
U.S. Treasury Secretary Timothy F. Geithner said a default arising from failing to raise the debt limit could cause “irrevocable damage” to the economy, risk a “double-dip” recession and increase unemployment. “Default would not only increase borrowing costs for the federal government, but also for families, businesses and local governments -- reducing investment and job creation throughout the economy,” Geithner said in a letter dated yesterday to Senator Michael Bennet, a Colorado Democrat.

Obama Says U.S. Default May ‘Unravel’ Global Finances (Source: Bloomberg)
President Barack Obama said failure to raise the U.S. debt ceiling by early August might disrupt the global financial system and plunge the nation into another recession.

Treasury Yields Approach This Year’s Low Before Report on U.S. Housing (Source: Bloomberg)
Treasury yields approached the lowest level this year before an industry report that economists said will show confidence among homebuilders is at recession levels.

Housing Probably Lagged Behind Factories: U.S. Economy Preview (Source: Bloomberg)
Sales and construction of U.S. homes probably hovered in April around the lows reached during the recession, while factories kept churning out more goods, a reminder that manufacturing remains the engine of the recovery, economists said before reports this week. Sales of existing homes rose 2 percent to a 5.2 million annual pace, according to the median forecast of 55 economists surveyed by Bloomberg News before a May 19 report from the National Association of Realtors. Industrial production grew for a sixth month, figures from the Federal Reserve may show.

US consumers feel pinch of gasoline costs in April
WASHINGTON, May 12 (Reuters) - The U.S. economy struggled to gain momentum early in the second quarter, with retail sales posting their smallest rise in nine months in April and  wholesale prices increasing more than expected.
Other data on Thursday showed new claims for unemployment benefits fell 44,000 last week to 434,000 as one-time factors that had led to a spike in the prior week reversed. But the level of claims still suggested hiring was softening.

China raises bank reserves again to tame inflation
BEIJING, May 12 (Reuters) - China lifted bank reserve requirements by 50 basis points on Thursday, signalling that containing inflation and soaking up excess cash remained its top priority even after signs the economy was slowing down.
The announcement of more tightening came as a surprise to some analysts who had expected the People's Bank of China to tap the monetary brakes more gently after a host of data from industrial output to imports were weaker than expected in April.

Japan’s Machinery Orders Unexpectedly Rose in March (Source: Bloomberg)
Japan’s machinery orders unexpectedly rose even after factory shutdowns, power shortages and supply- chain disruptions caused by a record earthquake and tsunami.

Japan’s Stocks Drop for Third Day on Risk of Greek Debt Restructure, Tepco (Source: Bloomberg)
Japanese stocks fell for a third day on concern Greece may have to restructure its debt, weakening the shared currency and hampering global economic growth.

U.K. House Prices Rise to Three-Year High as Holidays Curb Property Supply (Source: Bloomberg)
U.K. home sellers raised asking prices to the highest since June 2008 this month after public holidays in April limited the supply of property for sale. Average asking prices rose 1.3 percent from the previous month to 238,874 pounds ($388,700), London-based Rightmove Plc, the operator of the U.K.’s biggest property website, said in a report today. From a year ago, prices are up 0.7 percent.

Germany, France propel euro zone; growth gulf widens
BRUSSELS/BERLIN, May 13 (Reuters) - Storming performances by the German and French economies propelled growth in the euro zone well above forecasts in the first quarter while also highlighting the yawning gap between the bloc's strong and weak.
The 17-nation currency area expanded by 0.8 percent in the first three months of the year, data showed on Friday, fuelled by startling 1.5 percent German GDP growth with the French economy only a little off that pace, increasing by 1.0 percent.

Greece to Plead for More Aid as Arrest of IMF’s Strauss-Kahn Clouds Talks (Source: Bloomberg)
Greece today will plead for a boost in its 110 billion-euro ($155 billion) financial lifeline from European governments and the International Monetary Fund, in talks clouded by the arrest of IMF Managing Director Dominique Strauss-Kahn .

IMF Chief Strauss-Kahn Charged With Attempted Rape (Source: Bloomberg)
Dominique Strauss-Kahn , head of the International Monetary Fund and a potential candidate for the French presidency, was charged with attempted rape and a criminal sex act on a New York hotel maid, police said.

Euro Falls Toward 6-Week Low Before Ministers Meet on Greece (Source: Bloomberg)
The euro fell against the dollar and yen for a second day on concern European finance ministers may fail to quell speculation about Greece’s debt restructuring. The 17-nation currency dropped against 14 of its 16 major counterparts before the ministers meet today to discuss further support for Greece. Any extension of the maturities of Greek bonds would have to involve private investors, German Finance Minister Wolfgang Schaeuble said in an interview with ARD television in Berlin yesterday. The yen gained as a report showed Japan’s machine orders unexpectedly rose in March, following the nation’s worst earthquake.

Euro Crisis May Scuttle Eastern Europe Economy as Investors Bet on Region (Source: Bloomberg)
Eastern Europe’s economic recovery may be scuttled by any Greek debt restructuring, which would curb lending by western banks and undermine investor bets that have propelled the region’s stocks, bonds and currencies. While the region has three of this year’s 10 best- performing currencies and five of the 10 equity indexes that rose the most, 76 percent of its banking market is controlled by western European lenders still threatened by the euro’s debt crisis.

FOREX-Euro climbs after French and German GDP data
NEW YORK, May 13 (Reuters) - The euro climbed against the dollar on Friday after strong growth data in Germany and France bolstered expectations a healthy euro zone economy will keep interest rates in the region higher than their U.S. equivalents. A report showing U.S. consumer prices rose as expected in April on higher food and energy prices added to the dollar's weakness, as there was little sign of a broader pick-up in inflation that would trouble the Federal Reserve.
But some analysts said the euro's rebound from recent losses could prove short-lived as concerns about debt problems in peripheral euro zone states may outweigh rate differentials.

20110516 1003 Global Commodities Related News.

Corn (Source: CME)
US corn futures finish mixed, with nearby contracts rising on improved demand. Grain users increased purchases following a recent selloff, with South Korean buyers making their first major purchases in nearly two months. Traders worry the demand will drain already-tight inventories. The USDA announced exporters sold 271,200 metric tons of corn to "unknown destinations" for delivery during the next marketing year, though deferred contracts slipped. CBOT July corn ends up 1 1/2c at $6.82 a bushel; December corn loses 3 1/2c to $6.27.

Wheat (Source: CME)
US wheat futures finish lower as US dollar strength pressures commodities. Rising greenback fuels concerns about reduced demand, as it makes dollar-denominated commodities less attractive to foreign buyers. "The dollar was higher and that sent wheat down," says Larry Glenn, broker and analyst at Frontier Ag. Talk of beneficial rains in dry areas of southern US Plains and Europe apply further pressure. CBOT July wheat falls 7 3/4c to $7.27 3/4 a bushel; KCBT July loses 6 3/4c to $8.69 1/2; MGE July slides 4 1/2c to $9.00 1/4.

Rice (Source: CME)
Nearby US rice futures close unchanged as the market felt some pressure from the rising dollar and falling wheat prices, as both grains are global food staples. Yet, grain users remain concerned about the US crop since planting has been delayed due to rains in the South. The USDA will issue an update on planting progress Monday. CBOT July rice finishes at $13.98 1/2 per hundredweight.

US Corn Planting Delays Could Cut Yields By 5% - Cropcast Exec (Source: CME)
Delays to plantings of the U.S. corn crop this year may cut yields by up to 5%, Cropcast senior agricultural meteorologist Donald Keeney said, citing historical data since 1980. "Since planting has made some rapid advances in recent days, we can assume that the overall 50% planted date will be about a week late," he said. "This would give an expected yield of about 5% below trend." July corn on the Chicago Board of Trade ended up 3 1/4c to $6.80 1/2 a bushel Thursday, bucking a slump in commodity prices, as ongoing concern over delays to plantings may cut U.S. output this year. Corn stocks are abysmally low and demand for the grain as both feed and fuel has continued to rise, prompting fears that even a slight dent to a forecasted bumper crop could leave the U.S. undersupplied next year. Keeney noted that forecast good conditions for the rest of the summer, with near-normal temperatures and a good outlook for precipitation in the Midwest could help improve the state of the harvest.
The bulk of the corn belt is predicted to remain in "good shape through July" although some developing dryness in the southern region of the Midweast could make for a "slightly less than stellar year," he said. "We do expect the combination of planting delays and some late season dryness in southeastern areas, to bring final yields in at about 1-2% below trend," he said.

Grain Prices May Rally Again In 3Q On Weather, Chinese Demand (Source: CME)
The recent decline in agricultural commodity prices is a temporary setback and prices may rally again later this year on adverse weather, tight supply and strong Chinese demand, Barclays Capital Vice President, Sudakshina Unnikrishnan said. Prices of agricultural commodities have fallen to their lowest levels in more than a month with the July corn futures contract on the Chicago Board of Trade hitting an eight-week low of around $6.65/bushel Thursday. But this is only a short-term correction, said Unnikrishnan. Spot-month corn futures on the Chicago Board of Trade may rise above $7/bushel again and are likely to average $7.30/bushel in the third quarter, she said. Fundamentals are still strong, particularly in corn, due to abysmally low inventories, delayed plantings in the United States and strong demand from China, she said in an interview. China is on its way to becoming a regular corn importer and is likely to import around 2.0 million metric tons this year to shore up domestic stockpile, she said.
According to trading executives, Asian importers have been snapping up corn cargoes to take advantage of the recent fall in prices and South Korea, the world's third largest importer, has locked in close to half a million tons of purchases this week alone, for delivery in August and September. "If physical buyers make purchases (during) dips, it is a strong sign that prices may rise again," Unnikrishnan said. She said the recent decline in prices is partly due to the U.S. Department of Agriculture's preliminary forecast showing higher global production of wheat, corn and soybeans in 2011-12. However, due to adverse weather - too dry in some cases and too wet in others - in several major grain producing countries such as the U.S. and the European Union, the key bullish factors are still intact, she said.
In the case of wheat, production in France and Germany is looking increasingly problematic due to prolonged dry weather ahead of the harvest while U.S winter wheat plantings have been hit by a severe drought in Kansas and Oklahoma, Unnikrishnan said. She said CBOT near-month wheat futures may average around $7.70/bushel in the third quarter. CBOT's most active July wheat futures contract is currently trading around $7.35/bushel. Unnikrishnan said corn has greater upside price potential than wheat right now because of tighter supplies and the strong global dependence on just one supplier. The United States accounts for more than 50% of the global export of corn. Corn plantings in the U.S. have been delayed because of unusually wet weather in major growing areas, fueling fears that this could have an impact on overall yields. This led to a situation where corn briefly traded at a premium to wheat on CBOT, the first time in 15 years.
Unnikrishnan said this could repeat although wheat can't trade for long at a discount to corn as that would lead to a large-scale shift in physical demand towards wheat for use as animal feed. Soybean prices are currently subdued because of weak demand and a bumper crop in South America, but prices could move up later this year as high corn prices and the switch to corn leads to a fall in soybean acreage in China and the U.S, she said. China, for example, is expected to see an 11% shift in acreage to corn which could boost soybean imports to 58 million-60 million tons in 2011-12, she noted. China's soybean imports in the current marketing year to September are likely to be around 52 million tons, according to market estimates. Amid expectations of rising Chinese demand, CBOT near-month soybean futures are likely to average $14.30/bushel in the third quarter, Unnikrishnan said. The most active July soybean contract is currently trading around $13.50/bushel.

Farmland Values Up 20% In 1Q - Kansas City Fed Bank (Source: CME)
Farmland values in much of the U.S. Midwest rose 20% in the first quarter of the year, though prices are seen stabilizing in a move that could ease concerns over an asset bubble, according to a regional Federal Reserve report. A surge in grain prices has fueled a sharp rise in farmland prices, which are approaching record levels seen in 2008. The majority of farmland deals have been between farmers, yet interest from institutional investors is increasing, since the sector is seen as one of the few asset classes with a strong outlook. During the first three months of the year, Nebraska and Kansas saw the largest jump in values, with nonirrigated land values up 24% from a year ago, according to the quarterly report from the Kansas City Federal Reserve Bank. All other areas covered in the report including Oklahoma, Colorado, Wyoming and parts of New Mexico and Missouri saw increases in the quarter. Values also have been rising further east in the heart of the U.S. corn belt.
The Chicago Federal Reserve Bank in February reported farmland values were up 6% in the fourth quarter of last year and 12% for the full year, the second-biggest jump in the past 30 years. The bank is expected to release first quarter data later this month. The Kansas City report said bankers see prices stabilizing over the next three months. Yet others, including Kansas City Fed President Thomas Hoenig, have warned farmland values could fall by a third when the Fed tightens monetary policy and ends near-zero interest rates. The timing of this is much debated, but many expect a change in policy in the first half of next year. Farm lenders in interviews ahead of Friday's report said they are preparing for likely fallout from tightening monetary policy.
Lenders, for example, have typically loaned up to 65% of the appraised value of farmland, but some are now reducing that to 60% or even 50%, said Ross Anderson, senior vice president and chief credit officer for AgriBank, a St. Paul, Minn.-based wholesale lender to rural lending associations from Wyoming to Ohio. In a recent interview, he said banks also are reducing loan repayment periods or no longer lending to riskier applicants. Farm Credit Services of Mid-America, a Louisville, Ky.-based lending cooperative that serves the eastern corn belt, recently decided to increase collateral requirements as a precaution. Senior Vice President Philip Kimmel said he doesn't think there is a bubble, which would indicate a decline of more than 20%, but said farmland values could drop 10% to 15%. "We don't make loans based on what we think is going to happen, we make loans based on what may happen," he said in a recent interview. Anderson doesn't expect land values to decline in the short term.
"There's a potential for them to remain strong, and maybe even strengthen further," he said. The Kansas City Fed said most bankers in its quarterly survey expect farmland values to stabilize during the next three months. Overall, farm credit conditions in the district were stable, with strong loan repayment rates and few loan renewals or extensions, the Fed said. Most bankers in the survey expect farm incomes to remain "at elevated levels" and added that demand for loans has been low as farmers pay for fertilizer, fuel and land with cash. Ranch land values in the Kansas City district were up 11% from the prior year, driven by strong profits for livestock operators as well as a boom in energy exploration, which lifted land values in Oklahoma and the mountain states. The biggest concern among bankers surveyed was in Oklahoma, where a drought is hurting the wheat crop. That could hurt farm revenues and loan repayments rates, the Fed said.

Corn extends gains on U.S. planting delays
SYDNEY, May 13 (Reuters) - Chicago corn futures continued to trend up as concerns mount over delays in planting "Everyone is skeptical about the USDA numbers
-- there are likely to be further delays in planting the U.S. crop," said Brett Cooper, senior manager, markets at FCStone Australia.

Rain delays may cut US corn crop by 6-12 pct-firm
CHICAGO, May 12 (Reuters) - WeatherBill, a weather insurance firm, has estimated that 834 million to 1.6 billion bushels of corn may be lost due to heavy rains and planting delays so far in the eastern U.S. Corn Belt.
The figures are equal to 6 to 12 percent of the U.S. corn crop, using the U.S. Department of Agriculture's initial 2011 production forecast of 13.5 billion bushels.

Argentina wheat area to grow in 2011/12-exchange
BUENOS AIRES, May 12 (Reuters) - Argentina's 2011/12 wheat area is seen expanding to 4.95 million hectares from 4.7 million hectares the previous season, thanks to good weather, the Buenos Aires Grains Exchange said on Thursday.
The report left 2010/11 soy and corn harvest estimates unchanged. Wheat crops have received more rainfall than last month when there was a lack of rain in the country's western farming region and most of the wheat belt, the exchange said.

EU cleared 264,000 tonnes wheat exports this week
PARIS, May 12 (Reuters) - The European Union this week granted export licences for 264,000 tonnes of soft wheat, taking the total since the beginning of the 2010/11 (July-June) season to 17.0 million tonnes, official data showed on Thursday. The total so far this season compared with 15.4 million tonnes of export licences cleared by the same stage in 2009/10.
The EU also granted this week licences to export 126,000 tonnes of durum, bringing the total so far this season to 1.7 million tonnes, compared with 709,000 tonnes a year earlier.

Floods to delay start of U.S. grain export season
CHICAGO, May 12 (Reuters) - The grain harvest in the U.S. South typically kicks off in August, and supplies are quickly grabbed by exporters to be shipped across the globe.
But not this year. Massive flooding that has submerged about 3 million acres (1.2 million hectares) of crop land will delay the start of the export season in the world's top grain supplier.

US ethanol exports helped by cheap corn vs sugar
SEVILLE, Spain, May 12 (Reuters) - U.S. ethanol producers expect to dominate the world market in coming years due to high prices for sugar, the feedstock in major producer Brazil, an industry spokesman said on Thursday. Bon Dinneen, president of the Renewable Fuels Association, said U.S. ethanol was competitive because it was made from maize rather than sugar.
"Having seen some of the issues with cane production in Brazil, weather-related, and their own demand issues for sugar and fuel in their own country, I just don't anticipate a recovery in that market in the next four to five years," he said.

Thailand extends sugar crushing due to record output
BANGKOK, May 12 (Reuters) - Thailand's cane production was higher than expected at a record of 93 million tonnes, prompting the extension of its current 2010/11 sugar crushing season by a month to the end of May, a senior official said on Thursday.  That could result in record sugar exports this year but traders were not too concerned about the impact on prices, expecting the surplus to be absorbed by demand, especially from new client Russia.
Prasert Tapaneeyangkul, secretary-general of the Office of Cane and Sugar Board (OCSB), told Reuters the cane output should give record sugar production of around 9.45 million tonnes, 38 percent above the previous forecast of 6.8 million tonnes made at the start of the crushing season last November.

Sugar, coffee, cocoa rise as dollar falls
LONDON, May 13 (Reuters) - ICE raw sugar, arabica coffee and cocoa futures rose on a weaker dollar in early trading, with benchmark second-month arabicas well below a 34-year high of $3.0890 per lb touched on May 3. Sugar futures edged higher in early trading, underpinned by tight new-crop sugar supplies from Brazil, with an improving supply outlook limiting gains. Producers including Thailand, Pakistan and Brazil are expected to see increased output on the previous year.

El Salvador coffee output seen rebounding-attache
WASHINGTON, May 12 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in El Salvador: "After a historically low production cycle, El Salvador's coffee production is expected to rebound in 2010/11 and reach  1.7 million 60 Kg. bags. Favorable international coffee prices are providing relief to El Salvador's depressed coffee sector. Continued efforts to promote specialty coffee are paying off as exports of higher quality coffee are increasing, and now account for approximately 30 percent of total exports. 
  El Salvador continues to use activities such as the Cup of Excellence to promote coffee abroad. In addition, El Salvador once again had a stand at the 2011 Specialty Coffee Expo, where various coffee brands were exposed to quality coffee buyers.

Brazil sugar output down by rains, ethanol priority
SAO PAULO, May 12 (Reuters) - Sugar output in Brazil's center-south in 2011/12 through May 1 fell 69 percent from a year ago, as rains through mid-April
hindered cane harvesting and mills prioritized ethanol production.
Sugar production totaled 795,000 tonnes, down from 2.55 million tonnes in the same period last season, when harvesting started exceptionally early, data from
the sugar cane industry association Unica showed on Thursday.

Colombia coffee exports fall April on heavy rains
BOGOTA, May 12 (Reuters) - Colombia's coffee production in April fell 19 percent from a year earlier to 523,000 60-kg bags as heavy rains damaged crops, the nation's coffee federation said on Thursday. Coffee exports from the world's No. 1 producer of washed arabica fell 2 percent to 574,000 60-kg bags, the federation said. Tight supplies in Colombia, a key producer for the top-quality coffee market, have been driving a rally in Arabica prices, with ICE July arabica contract  touching a 34-year peak of $3.0890 a lb on May 3.

Russia sugar beet sowing exceeds year ago-industry
MOSCOW, May 12 (Reuters) - Russia sowed 1.093 million hectares with sugar beets by May 11, up from 1.025 million a year ago despite a delay in the start of the campaign, the Russian Sugar Producers' Union said on Thursday.
The industry lobby said the sowing was finished in practically all regions in the south and in the centre of the European part of the country, while in Siberia the campaign had just started.

Mexico sugar output at 4.98 mln tonnes to May 7
MEXICO CITY, May 12 (Reuters) - Mexico has so far produced 4.98 million tonnes of sugar in the 2010/11 harvest, 11.5 percent more than in the same period last year, the national sugar industry chamber said on Thursday.
Mexico's sugar harvest is expected to recover to 5.3 million tonnes, according to official estimates, after two cycles of lower production due to bad weather.

Gold-Coin Sales Reaching One-Year High Signal No End to Rally in History (Source: Bloomberg)
Sales of gold coins are on track for the best month in a year amid the worst commodities rout since 2008, a sign that bullion’s longest bull market in nine decades has further to run, if history is a guide. The U.S. Mint sold 85,000 ounces of American Eagle coins since May 1 as the Standard & Poor’s GSCI Index of 24 raw materials fell 9.9 percent. The last time sales reached that level, bullion rose 21 percent in the next year. Gold will advance 17 percent to a record $1,750 an ounce by Dec. 31 and keep gaining in 2012, the median estimate in a Bloomberg survey of 31 analysts, traders and investors shows.

METALS-Copper extends gains ahead of U.S. data
LONDON, May 13 (Reuters) - Copper rose on Friday, moving further away from five-month lows hit in the previous session as the dollar weakened, but investors remained cautious of a still volatile market. Copper for delivery in three months on the London Metal Exchange (LME)  was untraded in LME rings but bid at $8,879 a tonne, adding to modest gains on Thursday when it bounced off five-month lows.
The metal used in power and construction closed at $8,725 a tonne on Thursday, rising back from its lowest since Dec 1 hit earlier in that session.

PRECIOUS-Gold, silver prices rise as dollar retreats
LONDON, May 13 (Reuters) - Gold prices climbed and silver rose as much as 5 percent in Europe on Friday, recovering some of this week's heavy losses, as a drop in the dollar encouraged a rebound in the beleaguered commodities complex. Oil prices rose more than $1 a barrel and base metals like copper also recovered, after commodities were hit by broad-based selling on Thursday on growth concerns and a rally in the U.S. currency, which made dollar-priced assets more expensive.
Spot gold  was bid at $1,509.39 an ounce at 1138 GMT, against $1,502.35 late in New York on Thursday, while U.S. gold futures for June delivery  rose $2.40 an ounce to $1,509.20. Silver  was at $35.61 an ounce against $34.60.

Copper demand from China to stay strong- Aurubis
HAMBURG, May 13 (Reuters) - Copper demand from China is likely to remain strong despite the country's moves to slow growth to control inflation, the CEO of Europe's largest copper producer Aurubis  said on Friday.
China's moves to restrain its economy would only slow its rate of growth, which would still remain at a high level, Bernd Drouven told a telephone press conference after the company posted a sharp rise in earnings on Friday.

China imported iron ore stockpiles rise in week ending May 13
BEIJING, May 13 (Reuters) - Inventories of imported iron ore at Chinese ports hit 82.96 million tonnes on Friday, up 0.7 percent on the week and just short of the 83.11 million tonne record of April 22, data from industry consultancy Mysteel showed.
Slight declines in ores originating in India and Brazil were offset by an increase in deliveries from Australia.

Oil Drops After Obama Debt Warning; Louisiana Opens Mississippi Floodgates (Source: Bloomberg)
Oil dropped for the first day in three in New York after President Barack Obama said failure to raise the U.S. debt ceiling by early August may unravel global finances, stoking speculation fuel demand may slow. Futures slipped as much as 1 percent after Obama said in a segment taped for today’s “Face the Nation” program on CBS that “we could have a worse recession than we’ve already had” if investors think the credit of the U.S. wasn’t being backed up. Obama also announced plans to boost domestic oil production in the world’s biggest crude consumer.

20110516 1001 Soy Oil & Palm Oil Related News.

Soy Oil chart reading : correction range bound downside biased. 

ITS CPO export up 27.6% to 533,419 tonnes for the period of 1~15 May 2011.
SGS CPO export up 33.2% to 601,984 tonnes for the period of 1~15 May 2011.

Soybeans (Source: CME)
US soybean futures stumbled, as an initial push higher failed to gain traction after a rebound in the U.S. dollar guided prices lower on broader based speculative selling. The market garnered further pressure from slumping demand, with slower exports and a drop in domestic use adding to defensive tone, said John Kleist, analyst with Meanwhile, the threat of adverse planting conditions for corn, rice and cotton crops across parts of the central U.S. and Delta potentially leading to additional soybean acres added pressure as well. CBOT July soybeans settled down 13 1/4 cents or 1% at $13.29 1/2/bushel.

Soybean Meal/Oil (Source: CME)
Soy-product futures slide, backpedaling in unison with soybeans. The combination of a firmer US dollar attracting speculative selling and slowing demand amid competition from South American supplies provided further pressure to pin prices in negative territory, analysts said. CBOT July soymeal ended 2.2% lower at $345.40/short ton and July soyoil dropped 0.6% to 56.14c/pound.

Golden Agri-Resources 1st-Quarter Net Surges On Higher Crude Palm Oil Prices (Source: CME)
Golden Agri-Resources Ltd. (E5H.SG) said its first-quarter net profit grew sharply, boosted by a rise in crude palm oil prices and sales volume growth. Net profit for the three months ended March 31 was US$230.7 million, compared with US$88.5 million a year earlier, the company said in a statement to the Singapore Exchange. "The sterling results were supported by a 58% increase in average (freight-on-board crude palm oil) prices from US$765 per ton during the first quarter of last year to US$1,206 per ton during the first quarter of this year," the world's biggest palm planter by area under cultivation said in the statement. Revenue more than doubled to US$1.46 billion from US$624.5 million, largely due to the firm's Indonesia business more than doubling its contribution on higher crude palm oil prices and improved sales volume.
But this was partially offset by increased cost of sales and operating expenses, due mainly to higher raw material costs and export tax. "The outlook for the palm oil industry remains positive given its strong fundamentals, supported by continued core demand from the edible oil and oleo-chemical markets and the increasing demand from the renewable energy sector," the company said in the statement, adding it will "continue to focus on its long-term growth by expanding both its upstream and downstream business." The company, however, also flagged concerns over its China operations, where the environment "remains challenging in view of the volatility of commodity prices and government measures on domestic food prices."

Palm oil steady on demand hopes; China soyoil move eyed
JAKARTA, May 13 (Reuters) - Malaysian palm oil futures traded firmer as positive demand expectations supported prices, while investors mulled over the possible impact of a large Chinese purchase of rival soyoil. "Palm oil is oversold at the moment," a Kuala Lumpur-based analyst said. "In terms of inventory levels, it's not excessive.

China-Argentina soyoil deal may crimp demand for U.S Brazil supply
SINGAPORE/BEIJING, May 13 (Reuters)- China's deal to buy half a million tonnes of soyoil from Argentina will lower Beijing's demand on more expensive U.S.and Brazilian supplies.
The purchase, which amounts to around a third of China's 2010 soyoil imports of 1.34 million tonnes, could weigh on benchmark Chicago Board of Trade bean oil  prices. The U.S. contract is already down nearly 4 percent this month on an improved supply outlook.

Parched EU rapeseed needs rain, crop losses feared
HAMBURG, May 12 (Reuters) - Rain is urgently needed by rapeseed in the European Union's main producing countries, and there are increasing signs the crop in top producer Germany has suffered significant drought damage, analysts said on Thursday.
Rain forecast for the weekend may be too late to save the German crop but could help French and British rapeseed farmers achieve a reasonable harvest of the oilseed, which provides Europe's main food vegetable oil supplies and is a signficant ingredient in biofuels.