Thursday, May 26, 2011

20110526 1819 FCPO EOD Daily Chart Study.

FCPO closed : 3416, changed : 0 points, volume : lower.
Bollinger band reading : upside biased with possible pullback correction.
MACD Histrogram : rising, buyer in charge.
Support : 3420, 3350, 3300, 3270, 3250 level.
Resistance : 3450, 3470, 3500, 3550 level.
Comment :
FCPO closed unchanged with slower volume changed hand while soy oil overnight closed higher and currently trading firmer.
Daily chart formed a down doji bar candle closed near upper Bollinger band level after market opened and test little higher, swing downwards touched yesterday closing price area followed by the up swing tested day high near resistance level before sell down lower recording small loss and recovered slightly to closed unchanged.
Chart reading suggesting a upside biased market development with possible pullback correction testing support and resistance level.
When to buy : buy at support or weakness with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110526 1738 FKLI EOD Daily Chart Study.

FKLI closed : 1544 changed : +12.5 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer taking position.
Support : 1540, 1530, 1515, 1500 level.
Resistance : 1550, 1565, 1580, 1590 level.
Comment :
FKLI closed recorded gains for the third day with little lower volume transacted doing 3 points premium compare to cash market that also closed higher while regional(Asia & European) trading mostly higher and overnight U.S. market closed little higher.
sentiment turns positive after few top guns reported higher corporate earnings plus news on government temporary halt on fuel price and power tariff hike.
Daily chart formed an up bar candle closed nearer to upper Bollinger band level after market opened gap up, edge up higher towards the end to closed near the high of the day.
Technical reading turned to suggesting a upside biased market development possibly testing higher resistance level with today price closed break above plotted upper downward line plus MACD indicator having positive cross 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.

20110526 1604 Global Commodities Related News.

Land banks buffer Indonesian palm oil from forest ban
JAKARTA/KUALA LUMPUR, May 25 (Reuters) - Palm oil firms in Indonesia can overcome a two-year ban on forest clearing by tapping into land reserves, but they face bigger problems attracting the labour needed to work the soil and boost yields.
The ban, effective from Friday, limits access to sensitive peat and forest regions and removes much of the uncertainty that had hung over the palm industry as Jakarta finalised the details.

Asia stocks, euro rise as investors dive back into risk
SINGAPORE, May 26 (Reuters) - Asian stocks were on course for their biggest gain in a month on Thursday, led by resources and consumer sectors, with recovering commodity prices and the euro's rebound toward $1.42 bringing investors back into the markets in search of bargains.

Wheat up 0.7 pct, corn firm as weather threatens yields
SINGAPORE, May 26 (Reuters) - U.S. wheat futures rose 0.7 percent, rising for a second straight session as harsh weather continued to threaten crop yields in the United States and Europe.   Corn gained half a percent, while soybeans firmed in early Asian trade, building on Wednesday's rally amid planting delays in the United States.

Vietnam main rice crop output rises to 12.5 mln T-govt
HANOI, May 26 (Reuters) - Farmers in southern Vietnam harvested a bumper main rice crop in 2010/2011, with paddy output rising 1 percent from the previous year to more than 12.5 million tonnes, the Agriculture Ministry said on Thursday.
Output from the southern Mekong Delta alone rose 3.2 percent from the previous winter-spring crop to 10.6 million tonnes of paddy, or unhusked rice, beating industry forecasts the ministry said in its monthly report.

Brazil port to ship more sugar, but queue to recur
BRASILIA, May 25 (Reuters) - Brazil's No. 2 port for sugar exports expects throughput of the sweetener to leap by as much as half and for ships to face shorter waiting times to load in the current harvest, its commercial director told Reuters.
Exports of mostly bulk sugar through the port could climb to 5 million or 6 million tonnes this season, up from 4 million last year, said Lorenzo Fregonese, out of expected total production from the center south cane belt of nearly 36 million tonnes.

Mexico approves sugar import quota of 150,000 tonnes
MEXICO CITY, May 25 (Reuters) - Mexico has approved a sugar import quota of 150,000 tonnes until the end of this year, the Mexican Economy Ministry said on Wednesday.
Mexico has so far produced 4.98 million tonnes of sugar in the 2010/2011 harvest, 11.5 percent more than in the same period last year, the national sugar industry chamber said earlier this month.

Uganda coffee yield to rise on good weather-UCDA
KAMPALA, May 25 (Reuters) - Good weather is expected to lift Uganda's coffee harvest in the last six months of the 2010/2011 (Oct-Sept) season and offset poor yields in the first half, a report by the industry regulator said on Wednesday.
Uganda is Africa's second biggest exporter of the bean and earnings from the crop are key source of its foreign exchange.

Vietnam May coffee exports rise 10.6 pct y/y-govt
HANOI, May 25 (Reuters) - Vietnam's May coffee exports rose an estimated 10.6 percent from the same month in 2010 to 110,000 tonnes, or 1.83 million bags, exceeding market expectations, the government said on Wednesday.
Rising shipments from Vietnam, the world's top robusta producer, could help ease concern about a production shortfall in Indonesia, which is the world's second-largest producer of the variety used for making instant coffee.

Brent crude steady at $115 on weaker dollar, US stocks
SINGAPORE, May 26 (Reuters) - Brent crude held steady around $115 a barrel due to a softer dollar and as an unexpected drop in U.S. distillate stocks overshadowed gains in gasoline and crude inventories.   "The euro/dollar is the main factor driving prices today for oil and other commodities, and will continue to do so until there is some clear direction on where the dollar is headed," said Ken Hasegawa, a commodity derivatives manager at Newedge Brokerage in Tokyo.

Japan imports less oil, more gas after March quake
TOKYO, May 25 (Reuters) - Japan's April monthly crude imports fell 14 percent on the year on lower demand from damaged refineries while LNG imports rose nearly 9 percent to fuel power plants plugging the gap left by shutdown nuclear reactors after the March earthquake.
The country's industry faces a long recovery after the magnitude 9.0 quake and ensuing tsunami on March 11 devastated the northeast coast, damaging roads, ports and other infrastructure and disrupting supply chains.

China raw coal output accelerates in April
BEIJING, May 26 (Reuters) - China's coal production in April accelerated from previous months, a report by an official newspaper showed on Thursday, but China still appeared to be headed for a severe power shortage in summer.
China's raw coal production grew by 11.1 percent in the first four months of 2011 from a year earlier, reaching 1.12 billion tonnes, the official People's Daily reported on Thursday, citing data from the China Coal Industry Association.

Vietnam to raise iron ore export duty in July-govt
HANOI, May 25 (Reuters) - Vietnam will raise the export duty on iron ore to 40 percent in early July from 30 percent now to ensure raw material for its domestic steel industry, the government said on Wednesday.
The new rate will come into effect on July 2 following a Finance Ministry circular, the government said in a statement.

LME copper steadies on report Asian nations to buy euro debt
SINGAPORE, May 26 (Reuters) - LME copper steadied on a firmer euro, which rose after news broke that China and other Asian investors are expected to buy European bailout bonds. "The dollar is falling and the euro is rallying. This should help copper in the short term," said a Sydney-based trader.

Gold ticks up near 3-week high on euro debt jitters
SINGAPORE, May 26 (Reuters) - Gold edged up to near its strongest level in three weeks with the euro under pressure from concern over Europe's sovereign debt problems, while silver reached a two-week top, catching up with bullion's gains. "We still think that concerns about the ability of the EU to manage Greece's sovereign debt problems and potential contagion to other peripheral countries will be supportive for gold," said Natalie Robertson, commodities strategist at ANZ.

Industrial metals find silver lining in China power woes
HONG KONG, May 25 (Reuters) - China's battle with what may be the worst power shortages in seven years could provide a lift for metals prices as Beijing forces energy-intensive smelters and users to curb production, potentially leading to larger imports.
Power cuts for heavy power industrial users in the world's biggest commodity consumer, already hit by higher credit costs as Beijing tightens monetary policy, could force them to draw on stocks, paving the way for restocking later in the year and supporting prices in the longer term, analysts said.

20110526 1121 Global Market & Commodities Related News.

GLOBAL MARKETS: Asia stocks, euro rise as investors dive back into risk
SINGAPORE, May 26 (Reuters) - Asian stocks rose on Thursday, led by commodity and consumer related sectors, with steadier commodity markets and the euro's rally above $1.41 bringing some investors back into the markets in search of bargains.
The risks surrounding the euro have not eased much, with Greece fighting to avoid a debt restructuring that could have a big ripple effect across other high risk-European countries struggling with gaping fiscal deficits.

OIL: Oil hits 2-week high on US distillate draw, dollar
NEW YORK, May 25 (Reuters) - Oil prices rose 2 percent on Wednesday, climbing to two-week highs as an unexpected drop in U.S. distillate inventories trumped a sharp rise in gasoline stocks and as a softer dollar supported fresh commodities buying.
"The main component in today's rise in crude futures is the supportive drawdown in distillate stocks," said Rich Ilczyszyn, senior market strategist at Lind-Waldock in Chicago.

NATURAL GAS: Natural gas ends up, warmer weather backs gains
NEW YORK, May 25 (Reuters) - U.S. natural gas futures ended slightly higher on Wednesday, driven by recent drilling rig declines and more short covering on the warm Northeast and Midwest outlook for next week despite comfortable supplies.
"The market's been climbing ahead of expiration, probably on short-covering. The (warmer) weather is also lending some support, but I don't see prices getting back above recent highs (in the low-$4.70s)," a West Coast-based trader said.

EURO COAL: Euro Coal-Dips by $1/T, Aug DES trades at $120.25
LONDON, May 25 (Reuters) - Front month coal prices fell by around $1.00 a tonne on Wednesday as oil pared earlier gains, the dollar firmed and continued poor spot demand weighed on both the Atlantic and Pacific coal markets.
"Oil's down and coal's followed but currencies aren't always having an impact, it seems," one major European trader said.

COMMODITIES: Oil, Biggest rise in a week fueled by oil, soft dollar
NEW YORK, May 25 (Reuters) - Commodities on Wednesday posted their largest gains in a week, as oil prices rose on encouraging U.S. inventory data and the dollar slipped, fueling buying in a sector that has slumped this month.
"We've lots of pre-holiday short-covering emerging in livestock and softs as we had managed to press those markets to very, very low levels in recent weeks," Sterling Smith, analyst at Country Hedging in St Paul, Minnesota.

US firm buys "mystery" cargo of Libyan rebel oil
NEW YORK, May 25 (Reuters) - U.S. refiner Tesoro has bought the first oil cargo sold by rebels who control eastern Libya, a deal that could help them drum up funds to fight Muammar Gaddafi.
San Antonio-based Tesoro  told Reuters on Wednesday it bought the Libyan rebel crude to process in its Hawaii refinery. The deal was first agreed upon in late April, company spokesman Mike Marcy said.

20110526 1113 Local & Global Economic Related News.

Malaysia: Subsidy review may signal vote delay as oil rises
Malaysia has been discussing whether to trim subsidies for gasoline, diesel and electricity, which could result in higher prices. A proposal to change power rates will be re-examined and presented to the government again, Energy, Green Technology and Water Minister Peter Chin said after the cabinet meeting yesterday. Officials didn’t decide on fuel prices, the domestic trade minister said separately. (Bloomberg)

Japan: BOJ signals readiness to boost lending to support weak economy
The Bank of Japan indicated its willingness to expand lending programs to support reconstruction efforts after the nation’s record 11 March earthquake crippled factory production and pushed the economy into a recession. “We’re examining whether there’s a way to enhance” a JPY3trn (USD37bn) lending program for industries that can spur economic growth, Governor Masaaki Shirakawa said. Many BOJ board members in April discussed the potential need to expand a JPY1trn loan program designed to help companies in the aftermath of the quake, a record of the meeting showed. (Bloomberg)

Germany: Consumer confidence to fall third month in June, GfK says with concern that Greece may need to default and surging energy prices clouding growth prospects. The GfK Nuremberg-based market research company said that its consumer sentiment index, based on a survey of about 2,000 people, will fall to 5.5 next month from 5.7 in May. (Source: Bloomberg)

Spain: Producer prices climbed for a 17th month in April, adding to evidence of inflation pressure as the European Central Bank signals further interest-rate increases. Prices of goods leaving Spain's factories, mines and refineries rose 7.3% YoY, after climbing 7.8% YoY in March, the National Statistics Institute in Madrid said. From the previous month, prices gained 0.6% MoM, after advancing 0.9% MoM in March. (Source: Bloomberg)

UK: Exports boost economy as investment, consumer spending slump
UK exports helped the economy resume growth in the first quarter and outweighed the biggest slump in company investment and consumer spending in almost two years. Exports rose 3.7% in the quarter and net trade added a record 1.7 percentage points to gross-domestic-product growth, the Office for National Statistics said. Consumer spending dropped 0.6% and company investment plunged 4.4%. GDP rose 0.5% on the quarter and 1.8 % from a year earlier, matching initial estimates. (Bloomberg)

EU: Lagarde declares candidacy to replace Strauss-Kahn at IMF
French Finance Minister Christine Lagarde declared her candidacy to head the International Monetary Fund, saying she should be judged on the basis of experience rather than nationality. The IMF executive directors representing Brazil, Russia, India, China and South Africa united yesterday to protest publicly the presumption that the fund’s next chief once again be a European. The IMF has been led by Europeans since it was set up after World War II. (Bloomberg)

US: Home prices dropped 5.5% in first quarter
US home prices dropped 5.5% in the first quarter from a year earlier, the biggest decline in almost two years, as sales of discounted foreclosures undermined real estate values. Prices fell 2.5% from the fourth quarter, a Washington-based Federal Housing Finance Agency said. Economists projected a 1.2% drop from the previous three months, according to the median of five estimates in a Bloomberg survey. (Bloomberg)

US: Durable goods orders decline by most in six months
Orders for US durable goods dropped more than forecast in April, reflecting a slump in aircraft demand and disruptions in supplies of auto parts stemming from the earthquake in Japan. The 3.6% decrease in bookings for goods meant to last at least three years was the biggest since October and followed a 4.4% surge in March that was larger than previously estimated, a Commerce Department report showed. Economists projected a 2.5% April decline, according to the median forecast in a survey. (Bloomberg)

20110526 1104 Malaysia Corporate Related News.

KLCI chart reading :
pullback correction little upside biased.

Proton set aside RM1.6bn for capex
National carmaker Proton Holdings Bhd has set aside RM1.6bn for capital expenditure (capx) for its current financial year ending 31 March 2012, up 60% from last year’s expenditure of slightly less than RM1bn, in an effort to restrategise its business. Proton group managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said the increase is simply due to the company’s commitment to continue to invest in order to achieve its business transformation plans. (Malaysian Reserve)

Proton back to the black in 4Q
Thanks to the higher revenue from increased sales volume, national carmaker Proton Holdings Bhd has returned to the black in 4QFY11 ended 31 March, with a profit before tax (PBT) of RM81m, from a pre-tax loss of RM51.5m in the preceding quarter. However, for the full FY11, Proton’s PBT fell 18% to RM215m compared with FY10’s RM261m.. (Financial Daily)

Tenaga share price drops on no tariff hike
Tenaga Nasional Bhd’s share price lost all of its earlier gain to close lower by 33 sen or 5% yesterday after expectation of a tariff hike did not materialize. Tenaga shares closed at RM6.16 on tohe back of the deferment of the Casbinet meeting to disucss a hike in the electricity tariff. The share price has, on 24 May 2011, increased by 22 sen as the nation expected a tariff hike. (Malaysian Reserve)

Mah Sing achieves 49% of its RM2bn sales target for 2011
Property developer Mah Sing Group Bhd has achieved 49% of its RM2bn sales target for 2011, in line with strong response to all segments of its properties. The company has raked in RM975m in sales as at 31 May 2011, said group managing director cum chief executive officer (CEO) Tan Sri Leong Hoy Kum in a statement yesterday.(Malaysian Reserve) RGB close to USD25m deal RGB International Bhd (formerly known as Dreamgate Corp Bhd) is close to securing a USD25m (RM76.8m) contract to supply 1,000 gaming machines to one of the four casino concessionaires in Bagong Nayong Pilipino- Entertainment City Manila, said group executive director Steven Lim Tow Boon. The contract will be based on a concession model whereby RGB has a share of the revenue from the machines. (Financial Daily)

CIMB Q1 net profit up 9.4%
CIMB Group Holdings Bhd's net profit for first quarter ended 31 March was 9.4% higher year-on-year at RM917mil as credit losses dropped sharply.The net profit was equivalent to net earnings per share of 12.3 sen from 11.86 sen a year ago. This was achieved despite a 1.3% decrease in revenue to RM2.75bn for the quarter under review. The annualised net return on equity (ROE) for the quarter was 15.7%. (StarBiz)

TM Q1 profit down
Telekom Malaysia Bhd's (TM) net profit for its first quarter ended 31 March (Q1FY11) was down 32.8% to RM163.3mil from a year ago mainly due to lower unrealised exchange gains on translation of foreign currency borrowings.But the revenue for the quarter under review recorded a 1.1% growth to RM2.15bil year-on-year (yo- y), mainly attributed to higher revenue from data, Internet and multimedia services, which when combined contributed 57% of the group's total revenue for the quarter. (StarBiz)

SIA to set up own low-cost carrier
Singapore Airlines (SIA) has surprised the aviation industry by announcing plans to set up a wholly-owned lowcost carrier that will ply medium and long-haul routes in a year's time.SIA said it had intentions to set up a new no-frills low-fare airline operating wide-body aircraft which will be operated independently and managed separately from SIA. (StarBiz)

UEM Land profit soars
Property developer UEM Land Holdings Bhd's net profit and revenue for the first quarter ended 31 March soared compared with the same quarter a year ago on realisation of earnings from its own projects in Nusajaya, Johor, and from subsidiary Sunrise Bhd.The company said net profit jumped 460.34% to RM17.60mil on revenue that advanced 372.77% to RM187.68m. (StarBiz)

Maxis: Aircel stake purchase proper. Maxis Communications Bhd (MCB) says it was in full compliance with the applicable laws of India when it bought a stake in India's Aircel in 2007 and denies allegations that have surfaced in a recent news report in India. (Source: The Star)

Consumer: Prices of RON95 petrol, diesel and LPG to remain the same. The government has decided to maintain the prices of RON95 petrol, diesel and liquefied petroleum gas for the time being after an in-depth discussion on subsidy rationalisation at Wednesday's weekly cabinet meeting. (Source: The Star)

Petronas Dagangan: Seeks for stations. Despite the impacts of increasing subsidy cuts by the government and rising fuel prices, Petronas Dagangan Bhd which currently has 950 petrol stations nationwide, has intentions to invest RM250m to RM400m annually to set up between 30 & 50 petrol stations a year till 2016. (Source: The Star)

Prinsiptek: In RM90m Bangkok Project. Prinsiptek Corp Bhd will embark on a mixed development project in Bangkok next month with a gross development value of RM90m. (Source: Business Times)

Premium Nutrients: To sell palm oil downstream business. About 99% of shareholders of Premium Nutrients Bhd approved the sale of its flagship refinery and specialty fats business to Sri Lankan Carson group for RM117.9m. However, the disposal may turn Premium Nutrients into a PN17 company. (Source: Business Times)   

20110526 1018 Renewable Energy Related News.

TOKYO, May 25 (Reuters) - Softbank Corp , Japan's third-largest mobile phone operator, said on Wednesday that it would participate in a project to build about a dozen large solar power facilities across the country.
The company's billionaire president, Masayoshi Son, has committed himself to helping boost renewable energy sources in the wake of the crisis at a nuclear power plant in northeast Japan.

NAIROBI, May 24 (Reuters) - A 310 megawatt (MW) Kenyan wind power project has received approval to earn carbon emissions credits under the United Nations' Clean Development Mechanism, a senior company executive said on Tuesday.
Construction on the 617 million euro ($873.7 million) Lake Turkana Wind Power (LTWP) project is expected to start by December and will be the fourth project in Kenya to get approval under the CDM.

May 24 (Reuters) - Google Inc  and Citigroup Inc  will each invest $55 million in Terra-Gen Power's 102 megawatt Alta IV project in California, the companies said.
Renewable energy developer Terra-Gen Power is constructing the 1,550 MW Alta Wind Energy Center (AWEC) project in several phases, five of which have been completed.

PARIS, May 24 (Reuters) - Utility EDF  said it would invest in gas and renewable energies while forging ahead with its core nuclear power business, as the former French monopoly vies to be the world's biggest provider of electricity by 2020.
Electricity de France SA said atomic power production would remain its core business, stressing this was not called into question by the Fukushima nuclear disaster in Japan, but moved to address two questions raised by investors on its strategy.

SARAJEVO, May 24 (Reuters) - Serbia's power utility Elektroprivreda Srbije (EPS) and RWE Innogy, a subsidiary of German utility RWE , on Tuesday signed a 352 million euros ($495 million) deal to build hydro-power plants in Serbia.
Under the deal the utilities agreed to set up a joint venture, named Moravske Hidroelektrane (Morava Hydro-Power Plants), an independent power producer which will operate at least five future hydro power plants on Velika Morava river.

NEW DELHI, May 24 (Reuters) - Solar power in India could cost the same as conventional electricity by 2019-20, a report said on Tuesday, which could boost the use of an energy source regarded as key to curbing emissions in the world's third-worst carbon polluter.
A KPMG report said more aggressive policy could see solar power prices decline at a rate of 5-7 percent annually over the next decade, ensuring "grid parity", or the point when solar power costs the same as conventional power, as early as 2017-18.

Tokyo, May 24 (Reuters) - Toshiba Corp  said it may not reach its target of 39 orders for nuclear reactors until 2-3 years later than expected, and that it would increase focus on renewables and smart grids as the crisis rumbles on at the Fukushima Daiichi nuclear plant.
Despite the setback to its nuclear business, Toshiba said it aims to more than double its operating profit to 500 billion yen by the year to March 2014.

RIO DE JANEIRO, May 23 (Reuters) - Brazil's MPX will open the country's first solar power plant linked to the national grid in June and hopes the project will spur government incentives for the sector.
MPX , controlled by billionaire industrial magnate Eike Batista, will start the Taua plant in the northeastern state of Ceara with a capacity of only 1 megawatt, enough to power 1,500 homes, but expects that to increase to 50 megawatts within 10 years.

NEW DELHI, May 23 (Reuters) - From a lack of data and trained manpower to dealing with inexperienced investors, India's ambitious dream to boost solar power faces a host of problems that could slow plans to zoom production from near zero to 20 gigawatts by 2022.
Under its Solar Mission plan issued in 2009, India is to produce 1,300 megawatts (MW) of power by 2013, an additional supply of up to 10 gigawatts (GW) by 2017 and the rest by 2022 at an overall investment of about $70 billion.

LOS ANGELES, May 19 (Reuters) - The U.S. Department of Energy offered SolarReserve LLC a conditional $737 million loan guarantee on Thursday to support the development of a Nevada solar power plant.
The Santa Monica, California company was among a large group of companies competing for the coveted loan guarantees, which are awarded to projects deploying innovative energy technologies on a far larger scale than ever before.

MADRID, May 19 (Reuters) - Spain's energy watchdog suspended subsidies to 143 solar plants on Thursday for failing to show they were up and running before a generous state support for the fledgling industry was slashed in 2008.
That added to 808 plants which have been provisionally suspended as part of a review of more than 9,000 plants under way since last year in one of the world's major solar producers, the National Energy Commission (CNE) said in a statement.

20110526 1017 Biofuels Related News.

SAO PAULO, May 24 (Reuters) - Brazil's government will offer a line of subsidized credit for the replanting of cane crops, as part of a larger push to stimulate production of ethanol, the Agriculture Ministry said on Tuesday.
The new line of credit, directed at improving sugar cane yields through replanting of less productive fields, will be part of a low-carbon program with interest rates of 5.5 percent annually, below the 6.75 percent offer in other rural credit programs.

WASHINGTON, May 24 (Reuters) - Republican presidential contender Tim Pawlenty, who earned some influential praise for his stand against ethanol subsidies at his Iowa campaign kickoff, said on Tuesday there should be no "sacred cows" in cutting federal spending.
During an Internet town hall on Facebook, Pawlenty renewed his call for phasing out federal subsidies for the corn-based fuel, saying it was "not just about ethanol" but should be part a broader reform to eliminate subsidies across the board.

SAO PAULO, May 23 (Reuters) - Copersucar, Brazil's largest sugar and ethanol trader, and its shareholders plan to sell stock in an initial public offering to boost investments in logistics and marketing, according to the country's securities regulator.
The company did not disclose the number of shares that could be put up for sale, the size of the offering or the terms of the transaction.

KANSAS CITY, Mo., May 18 (Reuters) - U.S. ethanol production rose 4.4 percent in the latest week, the government said on Wednesday, reversing a downward trend.
Ethanol output totaled 900,000 barrels per day (bpd) for the week ended May 13, up 38,000 bpd from the prior week, the Energy Information Administration said.

SAO PAULO, May 17 (Reuters) - The number of ships loading, waiting or arriving to export sugar from Brazil's two main ports is growing and should let up in the coming days, shipping agencies said.
The lineup of vessels reached 58 on Tuesday, slightly up from 55 a week ago. Although backlogs to haul sugar from the world's largest producer of the sweetener are not uncommon, these numbers are not normal for this early in the season.

SAO PAULO, May 24 (Reuters) - Sugar and ethanol group Tereos Internacional  posted a three-fold surge in quarterly pre-tax net income as rising prices and increased volumes helped offset higher costs.
The company posted pre-tax profit of 139 million reais ($85 million) in its fiscal fourth quarter, ended March 31, compared with 41 million reais a year earlier, according to a securities filing.

20110526 1005 Global Market Related News.

 DJIA chart reading : pullback correction downside biased.

Hang Seng chart reading : pullback correction downside biased.

Asian Stocks Rise; Commodity Producers Gain(Source: Bloomberg)
Asia stocks rose, driving the regional benchmark index to its best performance in a week, as raw material producers increased after oil and copper prices rallied. Mitsubishi Corp. (8058), the Japanese trading company that gets about 40 percent of sales from commodities, gained 0.9 percent in Tokyo. Rio Tinto Group, the world’s second-biggest mining company by sales, climbed 1.8 percent. Bigger rival BHP Billiton Ltd. (BHP) advanced 1.8 percent after Deutsche Bank AG upgraded basic resources to “overweight” and named BHP among its top picks. Canon Inc. (7751), the world’s largest camera maker, jumped 5.1 percent on its plan to buy back shares.

OECD sees growth firm, but risks abounding
PARIS, May 25 (Reuters) - Global economic recovery is on track, helped by a stronger United States, but threats ranging from high oil prices to European sovereign debt crises could yet combine to create a bout of stagflation, the OECD said on Wednesday.
The Paris-based Organisation for Economic Co-operation and Development said the U.S. and euro area economies were growing faster than expected in forecasts six months ago, although Japan's economy was set to contract after the March earthquake, tsunami and nuclear crisis.

Container Leasing Surge Shows Global Economy Accelerating: Freight Markets(Source: Bloomberg)
The global trade rebound is pushing shipping lines to rely more on leasing companies such as CAI International Inc. and TAL International Group Inc. for the containers used to transport everything from bananas to blouses. “We’re seeing perfect conditions,” Brian Sondey, president and chief executive officer of Purchase, New York- based TAL, said in an interview. “Relatively strong growth in trade creates a good level of need for containers, supply is very tight and shipping lines aren’t purchasing as many containers as in the past.”

Durable-Goods Orders in U.S. Dropped 3.6% in April, the Most in Six Months(Source: Bloomberg)
Orders for U.S. durable goods dropped more than forecast in April, reflecting a slump in aircraft demand and disruptions in supplies of auto parts stemming from the earthquake in Japan.

Home Prices in U.S. Fell 5.5% in First Quarter, Biggest Drop in Two Years(Source: Bloomberg)
U.S. home prices dropped 5.5 percent in the first quarter from a year earlier, the biggest decline in almost two years, as sales of discounted foreclosures undermined real estate values. Prices fell 2.5 percent from the fourth quarter, the Washington-based Federal Housing Finance Agency said today in a report. Economists projected a 1.2 percent drop from the previous three months, according to the median of five estimates in a Bloomberg survey.

US new home sales rise, but signal no recovery yet
WASHINGTON, May 24 (Reuters) - Sales of newly built U.S. single-family homes rose for a second straight month in April and supply was the lowest in a year, but an overhang of previously owned houses on the market could hobble recovery.
The Commerce Department said on Tuesday sales increased 7.3 percent to a seasonally adjusted 323,000 unit annual rate, the highest since December, also giving prices a lift.

Deficit May Snap 12-Year Tax Winning Streak for Top-Earning Americans(Source: Bloomberg)
The year 2013 may snap a 12-year winning streak for wealthy Americans on taxes due on income, capital gains, dividends and giving money to their heirs. The U.S. deficit, forecast by the nonpartisan Congressional Budget Office to reach a two-year cumulative total of $2.5 trillion in 2012, has prompted calls by some in President Barack Obama’s administration, Congress and a bipartisan commission to limit tax breaks for home mortgage interest, charitable contributions, municipal bonds and retirement contributions.

Food Inflation Accelerating as Nestle, McDonald’s React to Commodity Surge(Source: Bloomberg)
U.S. food-price inflation may top the government’s forecast as higher crop, meat, dairy and energy costs lead companies including Nestle SA, McDonald’s Corp. (MCD) and Whole Foods Market Inc. (WFMI) to boost prices. Retail-food prices will jump more than the U.S. Department of Agriculture’s estimate of 3 percent to 4 percent this year, said Chad E. Hart, an economist at Iowa State University in Ames. Companies will pass along more of their higher costs through year-end, said Bill Lapp, a former ConAgra Foods Inc. chief economist.

‘Major Tornado Outbreak’ Seen for Midwest(Source: Bloomberg)
A “major tornado outbreak” brewing across nine states in the central U.S. is adding to insured losses that may already have reached $6.5 billion this season, according to an industry group. Tornadoes and thunderstorms have caused at least $3 billion in insured losses and perhaps more than double that, said Robert Hartwig, president and economist at the Insurance Information Institute in New York.

U.S. Stocks Snap Three-Day Drop as Commodity Producers Advance(Source: Bloomberg)
U.S. stocks advanced, with benchmark indexes snapping a three-day decline, as commodity shares rallied on expectations for higher raw material prices. Occidental Petroleum Corp. (OXY) and Halliburton Co. (HAL) gained at least 1.6 percent as oil climbed following a report showing that U.S. distillate fuel supplies dropped to a two-year low. Freeport-McMoRan Copper & Gold Inc. (FCX) advanced 2.4 percent as copper rose after Deutsche Bank AG said prices are likely to rebound. Fifth Third Bancorp and BB&T Corp. (BBT) increased more than 1 percent after Fitch Ratings said it probably won’t downgrade German banks because of their holdings of Greek debt.

China power crunch to worsen as drought slashes hydro output
BEIJING, May 25 (Reuters) - The worst drought to hit central China for half a century has brought water levels in some of the country's biggest hydropower producing regions to critical levels and could exacerbate electricity shortages over the summer.
The official Xinhua news agency said on Wednesday that the water level at the world's biggest hydropower plant at the Three Gorges Dam has fallen to 152.7 metres, well below the 156-m mark required to run its 26 700-megawatt turbines effectively.

BOJ Signals Readiness to Boost Lending as Exports Tumble Most Since 2009(Source: Bloomberg)
The Bank of Japan indicated its willingness to expand lending programs to support reconstruction efforts after the nation’s record March 11 earthquake crippled factory production and pushed the economy into a recession.

Japan’s Nikkei Index Rises Most in Three Weeks on Commodities(Source: Bloomberg)
Japanese stocks rose, sending the Nikkei 225 Stock Average to its biggest gain in more than three weeks, after oil and copper prices increased and as the yen weakened.

U.K. Economy Expanded 0.5% in First Quarter as Export Growth Accelerated(Source: Bloomberg)
U.K. exports helped the economy resume growth in the first quarter and outweighed the biggest slump in company investment and consumer spending in almost two years. Exports rose 3.7 percent in the quarter and net trade added a record 1.7 percentage points to gross-domestic-product growth, the Office for National Statistics said today in London. Consumer spending dropped 0.6 percent and company investment plunged 4.4 percent. GDP rose 0.5 percent on the quarter and 1.8 percent from a year earlier, matching initial estimates.

Australian Dollar Rebounds From Six-Week Low Versus Greenback Before Capex(Source: Bloomberg)
Australia’s dollar rebounded from the weakest level in six weeks versus the greenback before a report economists said will show the nation’s business investment increased to a record in the first quarter.

Euro Gains Versus Dollar, Yen on Interest Rates Outlook, as Stocks Climb(Source: Bloomberg)
The euro gained versus the dollar and the yen on prospects the European Central Bank will be quicker than its counterparts to raise interest rates and as stocks advanced.

FOREX-Debt concerns pound euro to record low vs CHF
LONDON, May 25 (Reuters) - The euro suffered broadly on Wednesday, plumbing a record low versus the Swiss franc as Greece's struggle for political consensus to salvage its finances underlined the possibility that the euro zone debt crisis will knock the single currency lower. Finland's approval of an EU/IMF bailout for Portugal helped the euro to pare some losses versus the dollar, but did little to stop the euro from falling to 1.2298 francs, the weakest since the single currency was launched in 1999.
Demand from hedge funds also prompted a short squeeze in the single currency versus the dollar, but analysts say the euro is tainted by ongoing uncertainty surrounding the euro zone debt crisis, and that a fall below $1.40 is imminent.

20110526 1003 Global Commodities Related News.

Corn (Source: CME)
US corn futures finish firmer as persistent planting delays raise concerns that farmers won't plant as many acres as intended. Rains in Ohio and the Dakotas are keeping progress slow after weeks of delays due to cool, wet weather. Fertilizer producer CF says it looks increasingly likely plantings will fall below 92M acres; the USDA in March predicted farmers would plant 92.2M. CBOT July corn jumps 9c to $7.42 1/4 a bushel.

Wheat (Source: CME)
US wheat futures close higher, with MGEX leading the rally on concerns about wet weather preventing planting. Rains continue to keep farmers out of fields in North Dakota, the top producer of spring wheat traded at the Minneapolis Grain Exchange. "There are some really serious planting delays that are going to continue," says Mike Krueger, president of The Money Farm. Poor global weather adds support as Western Europe is dry too. CBOT July wheat rises 16 3/4c to $7.96 1/2 a bushel, KCBT July gains 16 3/4c to $9.28 3/4 and MGEX July soars 31 1/4c to $10.20.

Rice (Source: CME)
US rice futures advance with prices for other grains. A sharp rally in wheat helped lift rice, as both grains are global food staples, an analyst says. Traders continue to worry floods affected crop land near the Mississippi River, including thousands of acres of rice, as rice plantings were already down significantly from last year. CBOT July rice rises 4 1/2c to $15.17 1/2 per hundredweight.

Commodities fundamentals strong despite recent rout-Glencore
HONG KONG, May 25 (Reuters) - The recent slump in commodity prices has taken the speculative froth out of the market, but fundamentals are still strong given   tight supplies and buoyant demand from emerging markets, Glencore International said on Wednesday.
Asian demand should underpin growth in commodities as global producers keep pace with the booming appetite from economies in the region, Glencore said.

Traders: End To Russia Grain Ban Imminent; Export Controls Expected (Source: CME)
Russian grain traders are increasingly hopeful the government will lift its ban on grain exports in July, industry sources said, although opinions differ on how the shipments will be managed. Speculation that the Kremlin will allow grain to leave the country has been mounting as prospects have improved for the country's harvest as a period of warm dry weather has helped farmers catch up on their spring sowings. Moscow-based analysts SovEcon this week raised its estimate for Russia's grain harvest to 85 million metric tons from previous expectations of 78-83 million tons. It pegged exports for the 2011-12 crop year at 15 million tons, towards the top end of industry estimates. Managing director Andrey Sizov Jr. said "it's too early to say whether Russia will resume exports by July 1, but it is indeed looking increasingly likely."
The promise of a better crop comes as officials are due to discuss whether to lift the embargo on grain exports imposed last August after devastating drought cut the harvest by around a third to an estimated 61 million tons. Any exports could potentially take the pressure off international markets, which have rallied almost 30% from March lows due to concerns the 2011-12 crop will not be large enough to meet world demand. Dealers and lobby groups have been pushing for the ban to be dropped when it expires at the end of June and some say they expect a decision from the government as early as this week. Key for the government is the need to balance curbing domestic food-price inflation--the public's top gripe in polls ahead of next year's election--and ensuring prices are high enough to encourage good plantings next season.
Domestic grain prices have begun to stabilize after a recent slump as traders have begun to buy in readiness for exports, but are still trading at a discount of $100-150 a ton compared to international markets. "The crops look better in Russia, but the world prices are strong," said a senior trader with operations in Russia. "The government will have to choose between allowing free exports and managing inflation targets." Traders said they expect any exports to be carefully managed. Some said the government may follow the example of neighboring Ukraine by imposing an export tax. Others said the government may allow free exports until September and then reconsider when the next harvest is finished. "The idea seems to be to let the ban run out and to allow exports for three months until end of September without quotas," said the first trader. "Then the overall supply situation would be reconsidered depending on the final crop outcome."
Either way, market commentators still see Russia's exports as a major supply risk for the 2011-12 crop year. All major forecasting agencies have predicted an expansion in world plantings this year but severe dryness in Europe and parts of the U.S. have caused concerns that production will be stunted again next year. Macquarie analyst Kona Haque said if producers manage the 20-30% expansion in wheat production she forecasts, it looks likely the Kremlin will lift the embargo in 2011 but the "fact that there is an export ban still in place is a huge supply-side risk right now."

India Won't Allow Wheat, Rice Exports From Govt Stocks-Minister (Source: CME)
India will not allow any wheat or rice exports from government stocks, despite ample supplies as the country is gearing up to soon introduce a food security law that guarantees cheap grains to 70% of the population, food minister said. "Our draft (food security) bill is ready. We should have enough stocks. Any decision on exports will need to be taken on that basis," K.V. Thomas said. However, the minister added that he was open to allowing limited exports to private trade. Exports from India, the world's second-largest wheat and rice producer, would help to ease tight global supplies, but the minister said the government would tread cautiously and a decision is unlikely for at least a month. India has maintained a ban on the export of wheat and common grades of rice for the past three years, but overflowing stocks have nudged the government to examine whether to allow some exports. The minister said a panel is expected to discuss the draft (food security) law at its next meeting, without specifying a date.
Once the approval comes through, the government will place it in parliament after a cabinet clearance. India is expecting a record foodgrain output of 235.9 million tons in 2010-11, while its stocks are more than double the requirement for government's welfare programs. The annual foodgrain requirement for welfare programs will jump to around 82 million tons from 61 million tons once the new law is implemented. "It is like a war. Foodgrain production will have to go up and so will procurement and supply, once the new law is in place," the minister said. The government was also exploring the possibility of overseas cultivation of food crops particularly in Africa to meet higher demand in coming years, adding that he recently held talks on possible collaboration with Uganda.
Separately, Thomas also said that he was examining together with the farm ministry whether to impose a tax on imports of crude edible oil and raise the 7.5% duty level on refined oils to encourage domestic cultivation that has jumped in 2010-11. The edible oil industry has demanded a 10% import tax on crude edible oil and a 17.5% import tax on refined oils to offset the impact of local taxes on domestic producers. India's oilseeds output this crop year through June is estimated to jump to 30.25 million tons from 24.88 million tons last year. Thomas also ruled out the possibility of allowing more sugar exports under the open general license this marketing year through September beyond the 500,000 tons that has been allowed. "Why should we think of more exports now when only half the quantity permitted has been shipped so far," he said. Indian mills are struggling to export as global prices have fallen from record levels three months ago and fresh supplies from Brazil are expected to bring down prices further.

U.S. wheat up 1 pct, corn firm after selloff
NEW DELHI, May 25 (Reuters) - Chicago wheat rose around 1 percent on Wednesday as poor crop weather across top producing regions of the world supported the market, while corn firmed on forecasts of more rains in the U.S. crop belt.
"The weather conditions are difficult. Please remember that the corn belt is very wet," said Garry Booth, a trader with MF Global Australia.

Farmers gain, forests at risk from Brazil land bill
BRASILIA, May 24 (Reuters) - Lawmakers passed an overhaul of Brazil's forest code on Tuesday that relieves farmers of part of $304 billion in potential costs in one of the world's breadbaskets but that environmentalists say will cause deforestation to surge.
The new law governing land use would reduce the amount of forest that farmers must preserve, relax the conservation of hilltops, and give partial amnesties for massive fines for past deforestation in Latin America's largest country.

Argentina allows 200,000 tonnes more in wheat sales
BUENOS AIRES, May 24 (Reuters) - Argentina authorized the exportation of an additional 200,000 tonnes of 2010/11 wheat, a limited amount because some farmers have not declared the full size of their crops, an official said on Tuesday.
Argentina is a major wheat exporter but the government restricts international shipments to ensure domestic supply as it grapples with inflation, estimated by private economists at 25 percent per year. Corn shipments are also controlled.

Rains urgently needed for much West European wheat
LONDON, May 24 (Reuters) - Wheat crops in much of western Europe remain in urgent need of more rain with time beginning to run out for some, particularly those on lighter soils, analysts and industry sources said on Tuesday.
"With every day that passes, the potential for recovery is dwindling," Jack Watts, senior economist with the Home-Grown Cereals Authority, said referring to the UK crop.

More severe storms, big rains head to US Corn Belt
CHICAGO, May 24 (Reuters) - More severe storms head to the U.S. Midwest this week, bringing heavy rains to soaked lands in the eastern belt where farmers are already struggling to finish corn planting by month's end, a forecaster said on Tuesday.
"With the rains coming, they are not going to see a whole lot of progress this week. It dries out later -- but by then it will be early June," said Joel Burgio, Telvent DTN forecaster.

Russia govt urged to lift grain ban July-Sept
MOSCOW, May 24 (Reuters) - Russia's government is considering a proposal from leading Russian grain traders and industry analysts to lift its ban on grain exports from July to the end of September, a top Russian analyst said on Tuesday.
"We have made this proposal, but officials may have other opinions," SovEcon President and CEO Andrei Sizov told Reuters.

Iraq sees higher wheat harvest, to suspend imports
BAGHDAD, May 24 (Reuters) - Iraq expects its wheat harvest to increase to between 2 million and 2.5 million tonnes this year, the agriculture minister said on Tuesday, up from 1.866 million tonnes in the 2009/2010 season when rains were good.
"We expect wheat to be above two million tonnes," Izzedine al-Dawla told reporters.

S.Africa raises 2010/11 maize output f'cast
JOHANNESBURG, May 24 (Reuters) - South Africa raised its May 2010-April 2011 maize output forecast on Tuesday, beating market expectations, after an increase in white maize yields in some parts of the country.
The government Crop Estimates Committee (CEC) said the country is now expected to harvest 10.99 million tonnes of maize, compared with 10.883 million tonnes in its previous forecast.

ICE sugar edges up but remains rangebound
LONDON, May 25 (Reuters) - ICE sugar rose in early trade on Wednesday, boosted by port congestion in top producer Brazil, while coffee also edged up but cocoa registered marginal losses.
ICE raw sugar edged higher in early trade but remain well within its recent trading range.

Brazil coffee farm will irrigate to boost output
BRASILIA, May 24 (Reuters) - Brazil's biggest coffee farm, Ipanema Coffees, hopes to boost yields by as much as a third through use of irrigation, part of an investment trend among producers eager to cash in on a sharp rise in prices.
Washington Rodrigues, CEO at Ipanema Coffees in the southeastern coffee belt in Minas Gerais state, said factors such as land prices in the dense farming region and surging labor costs made yields the most viable way to raise output.

Honduras 11/12 coffee output seen at 3.9 mln bags-attache
WASHINGTON, May 24 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Honduras:
"Honduras ranks first in Central America, third in Latin America, and seventh globally in coffee exports by volume. Honduran coffee production in 2011/2012 is forecast at 3.9 million 60 kilograms (kg) bags.

Government to finance Brazil cane replanting-paper
SAO PAULO, May 24 (Reuters) - The Brazilian government plans to offer a line of subsidized credit to sugar and ethanol mills for the replanting of cane crops, as part of a larger push to stimulate production of the biofuel, agriculture minister Wagner Rossi told a local newspaper.
Rossi said in Tuesday's Valor Economico paper that the new line of credit would be in the annual farm budget and directed at improving sugar cane yields through replanting of less productive fields.

Alien weed hits cotton, wheat in Syria, Iraq -FAO
MILAN, May 24 (Reuters) - An invasive alien weed, silverleaf nightshade, is theatening cotton and wheat crops in Syria and Iraq and could spread to Lebanon and Jordan, the United Nations Food and Agriculture Organisation (FAO) said on Tuesday.
More than 60 percent of the farmland in Syria, growing mainly cotton and wheat, has been infested with the weed, originally from the American tropics, which sucks nutrients from the soil and starves crops of water, the FAO said in a statement.

Ivorian cocoa arrivals 13 pct up from last season
ABIDJAN, May 24 (Reuters) - Cocoa arrivals at ports in top grower Ivory Coast were 13 percent higher than last season, data from the official marketing body obtained by Reuters on Tuesday showed, despite massive smuggling to Ghana.
Arrivals reached 1,068,918 tonnes by May 15, up from 946,644 tonnes in the same period a year ago, the data from the Coffee and Cocoa Bourse (BCC) showed.

Oil Trades Near a Two-Week High as U.S. Distillate Fuel Supplies Decline(Source: Bloomberg)
Oil traded near a two-week high in New York on signs of increased U.S. demand after a government report showed inventories of diesel and heating oil fell in the world’s biggest crude-consuming nation. Futures were little changed after climbing 1.7 percent yesterday as the Energy Department said distillate stockpiles declined 2.04 million barrels to 141.1 million last week, the lowest since April 2009. Demand for the fuel advanced 10 percent to 3.98 million barrels a day, the report showed. Gasoline stockpiles rose 3.79 million barrels to 209.7 million, the biggest addition since February.

China plans to increase scrap metals output by 60 pct by 2015-Assn
SINGAPORE, May 24 (Reuters) - China plans to expand output of secondary nonferrous metals by 60 percent from 2010 to 1.2 million tonnes by 2015 by tapping into scrap, a senior official at the China Nonferrous Metals Industry Association Recycling Metal Branch said on Tuesday.
China plans six to eight new scrap copper plants each with an annual capacity of 200,000 tonnes, eight to 10 scrap aluminium plants with 200,000 tonnes of capacity and 10 lead recycling projects with 50,000 tonnes of capacity, said Hongchang Ma, deputy secretary general of the association.

Japan April aluminium shipments down 7.6 pct yr/yr
TOKYO, May 25 (Reuters) - Japanese shipments of aluminium products fell 7.6 percent in April from a year earlier to 163,805 tonnes, industry data showed on Wednesday, reflecting weak demand as production was hit by the March 11 earthquake and tsunami.
Shipments were down 4.1 percent from 170,878 tonnes in March and it was the second month in a row of year-on-year declines, data provided by the Japan Aluminium Association showed.

Japan April rolled copper output rises mth/mth
TOKYO, May 25  (Reuters) - Japan's output of rolled copper product rose 3.1 percent in April from March, with manufacturers ramping up production ahead of power shortages slated for the summer, an industry body said on Wednesday.
The Japan Copper and Brass Association said rolled copper output totalled 70,669 tonnes on a seasonally adjusted basis in April, nearly flat from a year earlier.

Japan April rolled copper output rises mth/mth
TOKYO, May 25  (Reuters) - Japan's output of rolled copper product rose 3.1 percent in April from March, with manufacturers ramping up production ahead of power shortages slated for the summer, an industry body said on Wednesday.
The Japan Copper and Brass Association said rolled copper output totalled 70,669 tonnes on a seasonally adjusted basis in April, nearly flat from a year earlier.

METALS-Copper rallies as tight supply view back in focus
LONDON, May 25 (Reuters) - Copper rallied on Wednesday as a fall in production at the world's top copper mine put its longer-term supply fundamentals squarely back in focus and as worries over sovereign debt in the euro zone eased. Three-month copper on the London Metal Exchange traded at $9,005 per tonne at 0957 GMT, versus a close of $8,860 a tonne on Tuesday.
The metal used in power and construction fell to a five-month trough of $8,504.50 on May 12 and has since struggled to regain momentum.

PRECIOUS-Gold hits 3-wk high on euro zone debt jitters
LONDON, May 25 (Reuters) - Gold hit a three-week high on Wednesday, boosted by fears about the debt crisis in euro zone countries such as Greece while the resulting stronger dollar against the euro undermined sentiment. Spot gold  hit $1,528.40 a troy ounce, its highest since May 4. It was bid at $1,526.79 an ounce at 1120 GMT from $1,525.75 an ounce late in New York on Tuesday.
Euro-priced gold  hit a record 1,087.84 euros an ounce, according to Reuters data. Gold priced in sterling  was at 942.60 pounds per ounce, near a lifetime high of 944.87 struck on Tuesday.

Gold Rises on Concern Over Europe Debt(Source: Bloomberg)
Gold rose for a fourth straight session, the longest rally in three weeks, as Europe’s debt crisis increased investor demand for the precious metal as a protection of wealth. Christian Noyer, a member of the European Central Bank’s governing council, yesterday ruled out a restructuring of Greece’s debt, calling it a “horror story” that would leave the nation shut out of financing for years. Gold priced in euros and British pounds climbed to records today as policy makers disagreed over how to solve Greece’s fiscal woes.

20110526 1001 Soy Oil & Palm Oil Related News.

  Soy Oil chart reading : side way range bound.

Soybeans (Source: CME)
US soybean futures ends higher, garnering support from planting concerns, as slowed seeding progress in the eastern Midwest and northern Plains raise issues of potential acreage and yield losses. Tight US stockpiles have placed increased pressure on farmers to produce bumper soy crops in 2011, and with rains across the Midwest clouding the picture for acreage, traders are content to keep risk premium in the market. A recovery in crude-oil and metal futures markets added support by limiting investor selling, analysts said. CBOT July soy ended up 0.3% at $13.77/bushel.

Soybean Meal/Oil (Source: CME)
Soy product futures ended mixed, with soyoil rising on spillover support from a recovery in crude oil futures and higher world vegoil prices. Soyoil was buoyed by a pick up in world vegoil demand and expectations for tight soyoil inventories in Thursday's soy crush report from US Census Bureau, analysts said. Soymeal slumped on slower export and domestic demand. CBOT soyoil ended 0.8% higher at 57.96c/pound, and July soymeal dropped 0.3% to $358.30/short ton.

Monsanto Dangles New Seeds In Push To Collect Argentina Royalties (Source: CME)
Monsanto Co. is making a big push to get Argentina's farmers to voluntarily pay for its latest genetically modified soybean seeds with the promise of higher yields as the biotech giant seeks to increase its revenues from one of the world's top breadbaskets. Monsanto's attempt to sell an earlier version of its seeds introduced 15 years ago was a flop after the company failed to obtain an Argentine patent and its efforts to collect royalties were foiled by local regulations. Argentina is the world's third-leading exporter of soybeans, behind the U.S. and Brazil. Its new Roundup Ready 2 seeds, which are resistant to glyphosate-based herbicides and insect pests, are expected to increase yields by 10% to 15%, according to St. Louis-based Monsanto.
Monsanto hopes to reach an agreement with at least 80% of the country's growers as "a sign that the Argentine farm sector really wants to move forward with this technology," Pablo Vaquero, Sustainability and Corporate Affairs Director for Southern Latin America, said in an interview. Vaquero said that about 2,600 farmers who cultivate 4.5 million hectares, or 25% of the nation's farmland, have already agreed to the deal. The company is focusing on large-scale growers in a country where about 10,000 farmers are responsible for 80% of soy production, he said. Today, Monsanto mainly sells transgenic corn seeds in Argentina, which farmers need to buy from the company each year because, unlike soybeans, the modified traits in corn are diluted over time. Last year, its sales to Argentina totaled just over $600 million out of overall global sales of $10.5 billion.
Monsanto has patented the new soy seeds in Argentina, but under local law farmers aren't required to pay royalties on the seeds they hold back for the next planting season. Farmers have used that law to block Monsanto's previous efforts to charge for the use of its technology. Monsanto's efforts have run into fierce resistance from one of the country's leading farm groups, the Argentine Agrarian Federation, or FAA, which represents small-scale growers. The FAA's May newsletter carries a broad banner on the title page exhorting farmers to "Stand Up To Monsanto" and tells them to refuse to sign any kind of agreement. The company "is looking to control the productive process and convert the farmer into Monsanto's tenant," the FAA said. "It's a return to feudalism." Monsanto has enjoyed strong sales of Round Up Ready 2 in the U.S. this year after farmers reaped hefty gains in crop yields in 2010.
Monsanto plans to introduce the seeds on a commercial scale in Brazil during 2011, which has set the clock ticking on the company's window for reaching a deal in Argentina. Monsanto is well aware of the risk that its new seeds could be smuggled across the border to Argentina and enter into widespread use before the company has a mechanism in place for collecting royalties. In fact, Brazilian farmers engaged in a similar scheme a decade ago when they saw the high yields their Argentine counterparts were getting with Monsanto seeds. Despite being illegal in Brazil, the seeds were imported on a wide scale, eventually forcing the government to approve their use. "We can't do anything to stop the seeds from coming into Argentina ... but if the technology isn't approved by the government, it will violate the seed and patent laws and will need to be addressed by the Argentine legal system," Vaquero said.
"The risk exists and we're doing everything we can to avoid a repeat of the past," he added.

Palm oil slips on crude, exports cap losses
KUALA LUMPUR, May 25 (Reuters) - Malaysian palm oil futures eased on Wednesday, as investors booked profits on weaker crude oil although losses were limited by a strong export rebound this month.
"The market had already priced in an increase in exports and are just doing a minor correction," said a trader with a foreign commodities brokerage. "Palm oil has little room to go down as the margins are positive and the ringgit is weakening."