Thursday, June 9, 2011

20110609 1921 FCPO EOD Daily Chart Study.

FCPO closed : 3287, changed : -29 points, volume : higher.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : fall lower, seller taking small exposure.
Support : 3270, 3250, 3200, 3150 level.
Resistance : 3300, 3350, 3420, 3450 level.
Comment :
142 points range FCPO market closed recorded loss 4 days in a row with better volume transacted while soy oil overnight closed about the same and currently trading weaker.
Factor to watch will be tomorrow official MPOB May 2011 data and tonight U.S.Department of Agriculture reports.
Daily chart formed a huge down doji bar candle with longer lower shadow closed near lower Bollinger band level after market opened higher, tested above resistance level and slide down slowly followed by last hour sell down activities triggered lots of long covering stops order and recovered upwards to closed off the low of the day.
Technical reading suggesting a side way range bound little upside biased market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110609 1854 FKLI EOD Daily Chart Study.

FKLI closed : 1552 changed : +3 points, volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakening, buyer closing position.
Support : 1550, 1540, 1530, 1515 level.
Resistance : 1565, 1580, 1590, 1600 level.
Comment :
FKLI closed recorded small gain with lower volume changed hand doing 1 point premium compare to cash market that closed recorded minor loss and Asia region closed mostly lower, European currently trading little higher while overnight U.S. market continue to test lower.
Unsolved U.S. debt issue, no immediate stimulus plan to counter economy slowdown and ECB interest rate decision seems to be the factor to watch. Having said that, trader should anticipate an U.S. market technical rebound t take place soon after recent fall.
Daily chart formed an up doji bar candle with longer upper shadow closed near middle Bollinger band level after market opened 1 point above yesterday close, edge up higher slowly, and fall off lower surrender more than half of the intraday gain but still managed to closed back to above crucial support level.
Again(hate to repeat this but well that's the fact), chart reading still showing a correction range bound upside biased market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110609 1811 Global Market & Commodities Related News.

Asia stocks dip, euro pushes higher before ECB
HONG KONG, June 9 (Reuters) - Asian stocks slipped for a sixth straight day on Thursday as investors cut exposure to risky assets on signs the global economy is losing steam, with higher oil prices casting a shadow after OPEC failed to reach a deal to boost output.
"U.S. growth may be softer than we thought at the start of the year," said Goldman's economists in a note to clients. "However, it is less clear that the same is true elsewhere around the world."

Brent oil rises to $118 on OPEC, US crude stocks
SINGAPORE, June 9 (Reuters) - Brent crude rose to $118 on Thursday after Saudi Arabia failed to convince OPEC to raise output targets, and data showed U.S. crude stocks fell sharply last week.
"What this means is that there will be less spare capacity to handle another unforeseen outage," said Tony Nunan, a risk manager with Tokyo-based Mitsubishi Corp. 

US corn adds to gains ahead of USDA report
SYDNEY, June 9 (Reuters) - U.S. corn futures edged up on Thursday, adding to nearly 4 percent gains in the previous session ahead of a U.S. government report likely to forecast reduced corn output and a sharp reduction in old-crop stocks.
"Corn consumption in the U.S. has been quite high, particularly for use in ethanol production where demand has been quite sticky and has shown little sign of abating despite high prices," said Luke Mathews, an agricultural commodities strategist at Commonwealth Bank of Australia.

Brazil cocoa arrivals pick up after shaky start
SAO PAULO, June 8 (Reuters) - Deliveries of Brazil's mid-crop cocoa to local warehouses in the last week improved after appearing to stagnate in the previous fortnight, data from Bahia Commercial Association showed.
Arrivals from top cocoa state Bahia rose to 76,321 60-kg bags in the week to June 1 from 64,115 bags in the previous week, resuming their upward trajectory as the mid-crop advances.

Russian wheat offered in port, export outlook up
GELENDZHIK, Russia, June 8 (Reuters) - The Russian grain industry expects to make strong return to the export market in the coming crop season, with sentiment lifted by the prospects for a large harvest and sizeable stocks from earlier years.
While forecasts vary, several experts at the Russian Grain Union's XII International Grain Round said they expected wheat exports of 10 million tonnes, and that resistance from disgruntled North African and Middle Eastern clients who lost deliveries to last year's grain export ban will be limited.

Gap cutting cotton vendors to save money
SAN FRANCISCO , June 8 (Reuters) - Gap Inc  will cut back on the number of cotton vendors it deals with and develop more direct relationships with mills as it tries to rein in soaring yarn and fabric costs, Chief Executive Glenn Murphy said on Wednesday.
Murphy also admitted at an investor conference that the clothing retailer made mistakes recently and said its flagship brand needs significant changes in North America.

Brazil soy crop raised again to record high -gov't
SAO PAULO, June 8 (Reuters) - Helped by favorable weather, Brazil harvested a record soy crop in the 2010/11 season, about 1.4 million tonnes bigger than that forecast a month ago, government crop supply agency Conab said on Wednesday.
Output reached an unprecedented 75 million tonnes, up from the 73.6 million tonnes projected in May, Conab said in its ninth estimate of the crop, whose harvest finished last month.

French farm body sees plunge in wheat crop, exports
PARIS, June 8 (Reuters) - French soft wheat production is expected to fall 13 percent in 2011 to a four-year low after a drought-affected growing season, the country's farm office said on Wednesday in its first forecasts for the upcoming harvest.
FranceAgriMer estimated this year's French wheat crop would drop to 31 million tonnes from 35.6 million in 2010, with the average yield seen down 15 percent at 6.15 tonnes per hectare.

Copper steadies on weak dollar ahead of ECB meeting
SINGAPORE, June 9 (Reuters) - London copper steadied on Thursday after the previous session's 1 percent loss, while Shanghai rose 0.3 percent, supported by a weaker dollar ahead of a European Central Bank rate decision.
"There is not much life or excitement left in copper. Trade recently has been about jobbing in ranges. I don't like to talk about summer doldrums, but that's exactly where we are stuck," a trader in Singapore said.

Australia says Fukushima disaster won't curb uranium demand
SYDNEY, June 9 (Reuters) - Australia said the Fukushima nuclear disaster in Japan would not curb the world's appetite for uranium and predicted its exports will continue to rise as its develops more mines.
Spending on exploration in Australia to find more uranium is expected to rise by more than third this year, Australia's minister for mines, Martin Ferguson, said in a speech to geologists on Thursday.

Miners scour Australia for iron ore finds far from BHP, Rio
SYDNEY, June 9 (Reuters) - Australian prospectors are scouring remote outback locations for new sources of iron ore to rival the big western lodes dominated by Rio Tinto   and BHP Billiton  , spurred on by China's swelling appetite.
Analysts expect most of Australia's iron ore to keep coming from Western Australia's Pilbara region, the world's single largest deposit, which is seen producing about 400 million tonnes this year.

Gold flat; palladium firms on auto recovery
SINGAPORE, June 9 (Reuters) - Spot gold was flat on Thursday as a wait-and-see sentiment prevailed on future U.S. monetary policy moves, while palladium strengthened as the automobile sector recovers from the Japan earthquake in March.
"The market is at a loss. We need to wait for the verdict on whether there will be further quantitative easing from the Fed to get a clear sense of the future direction," said a Tokyo-based trader.

20110609 1802 Global Economic Related News.

Global: World Bank sees overheating risks with growth of 3.2% this year. Emerging-market economies, growing almost three times faster than their developed counterparts, need to speed spending cuts and interest-rate increases as they fight inflation and overheating, the World Bank said. The Washington-based institution lowered its growth forecast for the world economy this year to 3.2% from a January estimate of 3.3%, to reflect Japan's earthquake and political unrest in the Middle East and North Africa. The World Bank left unchanged a prediction for a global rebound to 3.6% in 2012. (Source: Bloomberg)

U.S: Fed says growth was 'steady' in most areas, slowed in some as consumers contended with higher food and fuel prices while shortages of parts reduced auto production. Four of the 12 regions reported slower growth. (Source: Bloomberg)

Germany: Industrial production unexpectedly declined in April, led by a drop in construction output. Production fell 0.6% MoM from March, when it rose a revised 1.2% MoM. In the year, production rose 9.6% YoY when adjusted for working days. (Source: Bloomberg)

U.K: Moody's Investors Service said the outlook on the U.K's Aaa rating is "stable," according to a spokesman for the ratings company. "Our central scenario is that the U.K. rating remains Aaa and the outlook is stable," Francesco Meucci, Moody's deputy head of media relations in Europe, Middle East and Africa, said in a phone interview from Paris. "However, slower growth combined with weaker-than-expected fiscal consolidation efforts could cause the U.K's debt metrics to deteriorate to a point where we would reconsider our stance." (Source: Bloomberg)

Greece: Jobless rate breached 16% for first time in March, extending a record high as the nation's economy remained mired in the third year of a recession. The jobless rate rose to 16.2% from 15.9% in February. (Source: Bloomberg)

Brazil: Raises rate to 12.25% after CPI exceeds target range. Brazil's central bank raised its benchmark interest rate for a fourth straight meeting after consumer prices exceeded the upper limit of its target range for the first time since 2005. Policy makers, led by central bank President Alexandre Tombini, raised the Selic rate by a quarter point to 12.25%. (Source: Bloomberg)

Japan: China's net purchases of Japan's long-term debt reached a record as the larger nation seeks to diversify the world's biggest currency reserves. China bought a net JPY 1.33tr (USD 16.6b) in Japanese long-term bonds in April, the biggest amount since records began in January 2005, according to data released in Tokyo by Japan's Ministry of Finance. The nation sold a net JPY 1.47tr of short-term debt, the data shows. (Source: Bloomberg)

Japan: Current account surplus narrowed in April as supply-chain disruptions after a record earthquake curbed exports. The gap shrank 70% YoY to JPY 406b (USD 5.1b), the Finance Ministry said in Tokyo. (Source: Bloomberg)

Taiwan: Exports rose at the slowest pace in 19 months in May after the earthquake in Japan disrupted trade flows in Asia and demand from China eased. Shipments abroad increased 9.5% YoY, compared with 24.6% YoY in April. Imports rose 19.3% YoY for a trade surplus of USD1.22b. (Source: Bloomberg)

Australia: Home loan approvals rose in April by the most since March 2009. The number of loans granted to build or buy houses and apartments gained 4.8% MoM from March, when they fell a revised 1.1% MoM, the statistics bureau said in Sydney. (Source: Bloomberg)   

20110609 1758 Malaysia Corporate Related News.

KLCI chart reading :
correction range bound upside biased.

TNB: Buys power from Singapore to ensure supply security. Tenaga Nasional Bhd (TNB) is buying power from Singapore-based PowerSeraya Ltd, a unit of YTL Power International Bhd, due to a shutdown of Petroliam Nasional Bhd-owned gas production platforms for maintenance and dwindling gas supply. (Source: The Star)

BJTOTO: May roll out new game on this weekend. Berjaya Sports Toto Berhad is expected to introduce a new game which is believed to be something similar to the 4D Jackpot introduced by Magnum 4D in September 2009. It is likely to help the company to grow its sales and expand its market share. (Source: Business Times)

Latexx: Accepts revised offer from YTY. Rubber gloves maker Latexx Partners Bhd's board has accepted a revised offer of RM1.25b (initially RM1.35b) on its proposed merger with YTY Industry Sdn Bhd. (Source: Bursa Malaysia)

Dijaya: Buys land for RM385m. Dijaya Corp Bhd has acquired 88.5 acres of freehold land in Pekan Country Heights, Selangor, from Chunghwa Picture Tubes (Malaysia) Sdn Bhd for RM385.5m. The land would be transformed into a mixed development comprising residential and commercial elements with an expected gross development value (GDV) of RM2.5b. (Source: The Edge Financial Daily)

MYEG: Set for Kazakh e-services venture. MY E.G. Services Bhd (MYEG) is set to collaborate with Kazakhstan company National Information Technologies JSC (NIT) to introduce e-government services to the republic this year in its first overseas venture. (Source: The Star)

AmFirst: To buy 2 Cyberjaya buildings. AmFirst Real Estate Investment Trust is expected to sign a deal to buy two commercial buildings in Cyberjaya with a combined estimated value of over RM130m. It currently has 6 assets worth RM1.02b. The properties, which are a couple of years old, were identified as Prima 9 and Prima 10. They are both located within the Prima Avenue II development in Cyberjaya. (Source: Business Times)  

20110609 1408 Global Market Related News.

GLOBAL MARKETS: Asia stocks dip, euro pushes higher before ECB
HONG KONG, June 9 (Reuters) - Asian stocks slipped for a sixth straight day on Thursday as investors cut exposure to risky assets on signs the global economy is losing steam, even as oil prices and the high-yielding Australian dollar pushed higher.
The Federal Reserve's beige book summary of economic conditions confirmed that the economy slowed in May due to higher gasoline prices and the supply chain disruptions following Japan's earthquake and tsunami in March.

OIL: Oil jumps as OPEC talks fail, eyes Saudi solo hike
NEW YORK, June 8 (Reuters) - Oil prices jumped on Wednesday after OPEC failed to reach a deal to increase output, raising fears of supply shortages later this year that could fuel a further price rally, imperiling the economic recovery.
"Oil prices rising over $120 per barrel will have a severe impact on the world economy, and we would continue to see sluggish numbers coming out of the US and other countries," said Thorbjorn Bak Jensen, oil market analyst at A/S Global Risk Management Ltd.

NATURAL GAS: Natural gas ends up, front hits 4-1/2-mth high
NEW YORK, June 8 (Reuters) - U.S. natural gas futures ended with modest gains on Wednesday, with strong heat stretching from Texas to New York driving the front month to its highest level since late January despite milder weather forecasts for next week that should slow demand.
"Heat continues to support the contract, but the surge at the end was due to light expectations for storage (build) on Thursday relative to the norms," Gelber & Associates analyst Pax Saunders said.

EURO COAL: S.Africa discount deepens on lack of buying
LONDON, June 8 (Reuters) - Fixed coal prices remained robust on Wednesday, bolstered by a $2 rise in oil but South African FOB coal values are starting to feel downward pressure because of a lack of buying interest in the Atlantic and Pacific.
"It makes no sense to be shipping contracted South African coal to Europe, the contango is too small to be worth the stockpiling costs," one European utility source said.

COMMODITIES: OPEC twist lifts oil; corn jumps ahead of USDA
NEW YORK, June 8 (Reuters) - Commodities gained broadly on Wednesday, with oil rising as much as 2 percent before closing off its peak after other OPEC members resisted top producer Saudi Arabia's plan to hike output and moderate prices.
"This is one of the worst meetings we have ever had," said Ali al-Naimi, oil minister of Saudi Arabia, the most influential member in OPEC.

20110609 0946 Renewable Energy Related News.

ZURICH, June 1 (Reuters) - Swiss engineer Oerlikon  has won a first 100 million euro ($143.7 million) order for its new solar production line and may have more in the pipeline, a boost for its recovery from near bankruptcy last year.
This is the first order to install Oerlikon's new 120 megawatt line producing thin film silicon modules and comes from a new customer in Asia, Oerlikon said on Wednesday.

June 1 (Reuters) - Canadian Solar Inc  said it would build a 600 megawatt photovoltaic cell production factory in Suzhou in Eastern China, a day after the solar panel maker announced plans to set up a wafer plant in the same area.
The company said it would build the factory with state-owned enterprise Suzhou New District Economic Development Group Corp [SNDED.UL] and Suzhou Science and Technology City Development Co Ltd.

MADRID, June 1 (Reuters) - Stronger winds than expected hauled down benchmark Iberian wholesale power prices for the second day in a row on Wednesday by forcing costlier gas-burning generators off line.
National grid operator REE  estimated that Spanish wind parks -- Europe's most productive in 2010 -- were producing 10,339 megawatts by mid-afternoon, above a peak of 9,000 MW forecast on Tuesday.

GENEVA, June 1 (Reuters) - Japan asked the World Trade Organization on Wednesday to form a legal panel to decide whether
Canadian provincial backing for solar and wind energy projects gives an unfair advantage to domestic equipment makers.
Japan has given up direct attempts to resolve a spat over an Ontario scheme that guarantees prices for renewable energy as long as it is generated with Canadian-made equipment, Japan's ambassador to the WTO said in a letter to the chairman of the WTO's disputes division.

BEIJING, June 2 (Reuters) - Electricity shortfalls in Tianjin, an industrial city near Beijing, may reach 1.5 gigawatts this summer, or 13 percent of the expected maximum power load, local grid operator warned on Thursday.
Tianjin Electrical Power Corp, a unit of State Grid Corp of China (SGCC), the country's dominant power distributor, forecast the maximum power load in Tianjin of 11.4 GW to emerge in late July or early August.

OSLO, June 2 (Reuters) - The world should more than double reliance on renewable energy by 2030 as part of goals to slow climate change in a drive that will need strong backing from the private sector, a senior U.N. official said on Thursday.
"The new goal is to have 30 percent of energy supplies from renewable sources by 2030," Kandeh Yumkella, head of the U.N. Industrial Development Organization (UNIDO), told Reuters in a telephone interview.

JERUSAELM, June 5 (Reuters) - Israel's Arava Power unveiled the country's first commercial solar power plant on Sunday, showing it off to government ministers and dignitaries, and announced plans to erect dozens of other solar array fields, whose total cost could reach $2 billion.
The 100 million-shekel ($30 million), 4.95 megawatt plant in the agricultural community Kibbutz Keturah which is due to be hooked up to the national grid in the next few weeks, is the first of about 50 photovoltaic power fields that Arava said it will build throughout the southern Negev desert by the end of 2014.

MILAN, June 6 (Reuters) - Italy's total grid-connected solar capacity is expected to rise to 9,000-10,000 megawatts at the end of 2011, the head of the European Photovoltaic Industry Association told Reuters on Monday.
Ingmar Wilhelm said that 2011 would be an exceptional peak year for solar capacity development in Italy, which should see an additional 6,500 megawatts of capacity.

20110609 0945 Biofuels Related News.

CHICAGO, June 8 Reuters) - After climbing from less than 100,000 tonnes in January 2006 to more than 1 million tonnes in July 2010, U.S. exports of distiller's dried grains (DDGs) -- a byproduct of corn-based ethanol production -- were widely considered a major boon for the U.S. ethanol industry that alleviated pressure on the U.S. corn market by offering global animal feeders with a high-protein alternative to corn.
But DDG exports have fallen sharply since, with the latest month's shipments down on the same period a year ago. Part of the slowdown can be attributed to top export market China's anti-dumping probe into U.S. DDGs launched in December. But a surge in DDG prices to record highs is also hurting demand, and highlights the frailty of this burgeoning sector that less than a year ago was being heralded as a dependable source of long-term revenue for U.S. ethanol makers.

SAO PAULO, June 6 (Reuters) - By most measures, this should be a golden age for sugarcane ethanol in Brazil. Yet, despite high prices for the biofuel and a massive expansion in the domestic fleet of cars that use it, Brazil's ethanol industry is struggling with stagnant investment, insufficient supply growth and a government that can't seem to figure out whether to treat it as a friend or a foe.
Efforts to resolve the impasse will be front and center at a major Brazil ethanol summit that starts on Monday. The event brings together government officials including Energy Minister Edison Lobao, global energy executives, and members of the Unica ethanol industry group, which is hosting the event.

SAO PAULO, June 6 (Reuters) - Brazil's government unveiled new financing and other incentives for sugar cane ethanol production on Monday, vowing to work closely with the private sector to boost production in an industry that has struggled recently despite its immense promise.
The state-run development bank BNDES announced that it would provide 30 billion to 35 billion reais ($19 billion to $22 billion) to finance expansion in the sugar cane sector through 2014, a major bet equivalent to about two-thirds of the industry's annual output. 

BUENOS AIRES, June 7 (Reuters) - Global commodities firm Louis Dreyfus will invest $40 million to build a biodiesel plant in Argentina's Rosario area, one of the world's biggest grains hubs, a company source said on Tuesday.
The South American country is one of the biggest global exporters of biodiesel, made using soyoil. Argentina is also the world's No.1 soyoil and soymeal supplier.

SAO PAULO, June 6 (Reuters) - Billionaire Vinod Khosla took Big Oil to task on Monday for taking more risk on a long-odds deepwater oil well than on the future of biomass energy that he says will change the world within decades.
Speaking the 2011 Brazilian Ethanol Summit in Sao Paulo, the co-founder of Sun Microsystems said that the world is on the verge of a technological breakthrough in cost-effectively converting crops like sugarcane into most of the fuels and consumer products that petroleum now provides.

SAO PAULO, June 7 (Reuters) - Brazil's government will begin implementing fresh regulations to its ethanol market next month by requiring producers and distributors to fix one-year supply contracts, in a bid to curb shortages and price spikes, a top industry official said on Tuesday.
The regulations being implemented featured no plans for more onerous rules such as production targets, Allan Kardec, supply director for Brazil's National Oil and Biofuels agency or ANP.

SAO PAULO, June 7 (Reuters) - Cut costs, or fade away.
That was the challenge facing Brazilian sugarcane ethanol producers as they gathered on Tuesday for the second day of a major industry conference and debated ways to ensure that the biofuel lives up to its enormous hype in the coming decade.
Ethanol production costs have soared in recent years, but the rise cannot be fully passed along to Brazilian consumers because prices for gasoline at the pump have been essentially held down by the government since 2002. When ethanol prices rise too much, drivers tend to switch to gasoline.

SAO PAULO, June 7 (Reuters) - Brazil, the world's largest grower of the most promising biofuel feedstock of the future -- sugarcane -- will suffer shortages of fuel ethanol for several years to come due to the lack of investment in new planting.
After being forced to import gasoline in early 2010 and again earlier this year, a concerned Brazilian government set into motion a reform of regulation for the ethanol industry with the hope of boosting supply of the biofuel.

SAO PAULO, June 2 (Reuters) - U.S. agribusiness giant Cargill said on Thursday it has created a joint venture with Brazilian cane group Usina Sao Joao (USJ) to operate in sugar, ethanol and bioelectricity.
Each company will have 50 percent of the venture, according to Cargill, which did not disclose financial details of the transaction.

20110609 0944 Global Market Related News.

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

Asian Stocks Decline on U.S. Economic Slowdown (Source: Bloomberg)
Asian stocks fell, dragging the regional benchmark index to its lowest level in two weeks, after the Federal Reserve said the economy is slowing in some areas of the U.S., boosting concern the global recovery may falter. Canon Inc. (7751), the world’s biggest camera maker, lost 0.7 percent in Tokyo. Toyota Motor Corp. (7203), the world’s largest carmaker that gets 28 percent of sales in North America, dropped 0.6 percent. Newcrest Mining Ltd. (NCM), Australia’s No. 1 gold producer, declined 1.4 percent after cutting its full-year output forecast for the third time this year.

Stocks, dollar fall as Bernanke fails to inspire
SINGAPORE, June 8 (Reuters) - Asian stocks fell on Wednesday and the dollar wavered after uninspiring comments from U.S. Federal Reserve Chairman Ben Bernanke added to worries about the slowing global economy.
"We don't expect much in the near term without fresh developments," she said. "There is concern over what's going to be happening with global growth. Double-dip (recession) worries will come back."

U.S. Economy ’Steady’ in Most Areas: Fed (Source: Bloomberg)
The Federal Reserve said the economy expanded at a “steady pace” in most of the U.S. while slowing in four of 12 regions as consumers contended with higher food and fuel prices and shortages of parts reduced auto production.

U.S. Needs Austerity to Reset Economy, Pimco Official Says: Tom Keene (Source: Bloomberg)
The U.S. should stop kicking “the can down the road” and implement fiscal austerity measures so the economy can fully recover from the financial crisis, according to Pacific Investment Management Co.’s Neel Kashkari. The government should abandon stimulative measures and focus on economic adjustments in order to allow for long-term growth, Kashkari, managing director and head of new investment at Newport Beach, California-based Pimco, said in an interview on Bloomberg Television’s “Midday Surveillance” with Tom Keene.

U.S. Policy Prompts Dollar Questions: Gross (Source: Bloomberg)
Pacific Investment Management Co.’s Bill Gross said foreigners are questioning the dollar’s role as the world’s reserve currency because of U.S. policies that keep borrowing rates low to reduce the nation’s debt burden. Gross, manager of world’s biggest mutual fund, reiterated that investors should avoid U.S. Treasuries because they’re not being compensated for the risk of inflation. Investors should buy debt of nations that maintain better fiscal and monetary policies such as Canada, Germany and Mexico, he said.

U.S. Stocks Decline, Giving S&P 500 Its Longest Losing Streak Since 2009 (Source: Bloomberg)
U.S. stocks retreated, sending the Standard & Poor’s 500 Index to the longest losing streak since February 2009, as raw-material and financial shares slumped amid growing concern the economy is slowing. Visa Inc. (V) and MasterCard Inc. (MA) fell at least 1.5 percent after the U.S. Senate rejected a six-month delay of a Federal Reserve rule capping debit-card swipe fees set by the companies. Ciena Corp. (CIEN), the maker of network gear for the biggest U.S. phone companies, tumbled 16 percent after reporting a wider- than-estimated loss. Gap Inc. (GPS) slumped 2.4 percent after Barclays Plc cut its recommendation for the largest U.S. apparel chain.

Bernanke glum on growth but gives no stimulus hints
ATLANTA, June 7 (Reuters) - Federal Reserve Chairman Ben Bernanke on Tuesday acknowledged the economy has slowed but offered no hint the U.S. central bank is considering any more stimulus to accelerate growth.
He also warned members of Congress who might be planning aggressive budget cuts that they have the potential to derail the recovery if cuts in government spending take hold too soon.

Bernanke Says ‘Frustratingly Slow’ Recovery Warrants Accommodative Policy (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke said the “frustratingly slow” U.S. recovery warrants sustained monetary stimulus while predicting that growth will gain speed in the second half of the year. “The economy is still producing at levels well below its potential; consequently, accommodative monetary policies are still needed,” Bernanke said yesterday in a speech in Atlanta. At the same time, the Fed “will take whatever actions are necessary to keep inflation well controlled,” he said.

Obama Team Eyes Payroll Tax Break for Employers (Source: Bloomberg)
President Barack Obama’s advisers have discussed seeking a temporary cut in the payroll taxes businesses pay on wages amid economic reports suggesting the recovery is slowing, according to people familiar with the matter. The idea, in preliminary stages of discussion, is among several being debated in the administration with the aim of boosting hiring, the people said on condition of anonymity to discuss internal deliberations. The unemployment rate in May rose to 9.1 percent, the highest level this year, and the economy is a main focus of the political discussion in Washington.

China floods kill 24, force 100,000 to evacuate
BEIJING, June 8 (Reuters) - Heavy rain drenched a swathe of what had been drought-gripped southern and eastern China, killing 24 people and forcing more than 100,000 to evacuate, state media reported on Wednesday.
The drought has damaged crops and exacerbated a power shortage by cutting power generation from dams, adding a slight bump to near three-year high consumer inflation.

Japan Economy Contracted Less Than Estimated (Source: Bloomberg)
Japan’s economy contracted less than the government initially estimated in the first quarter, a sign the economic slump caused by the March 11 earthquake and tsunami wasn’t as deep as expected. Gross domestic product shrank at an annualized 3.5 percent rate in the three months ended March 31, less than the 3.7 percent contraction reported last month, the Cabinet Office said today in Tokyo. The median forecast of 23 economists surveyed by Bloomberg News was for a 3 percent decrease.

Japanese Stocks Drop for First Time in Three Days on U.S. Slowdown Concern (Source: Bloomberg)
Japanese stocks declined for the first time in three days after the Federal Reserve said the U.S. economy is weakening in some regions, sparking concern that the global recovery is slowing. Canon Inc. (7751), the world’s biggest camera maker, sank 1.2 percent. Toyota Motor Corp. (7203), an automaker that earns about 70 percent of its revenue abroad, slid 1 percent after the yen strengthened, cutting the earnings outlook for the exporter. Tokyo Electric Power Co., owner of the nuclear power plant crippled by March’s earthquake and tsunami, dropped 11 percent.

South Korea to Weigh Rate Increase as Household Debt Poses Risk for Growth (Source: Bloomberg)
The Bank of Korea will weigh an interest-rate increase tomorrow as swelling household debt and weakness in the global economy pose threats to growth.

Euro Rises on Prospects ECB’s Trichet Will Signal Rate Rise for Next Month (Source: Bloomberg)
The euro traded 0.6 percent from a one-month high versus the dollar on speculation European Central Bank President Jean-Claude Trichet will today signal policy makers are likely to raise interest rates next month.

Pound Weakens After Moody’s Says U.K.’s Aaa Credit Rating Might Be at Risk (Source: Bloomberg)
The pound weakened against the dollar and the yen after Moody’s Investors Service said the U.K.’s Aaa credit rating may be at risk should the government miss its debt-reduction targets amid slowing growth. Sterling fell to the weakest in more than three weeks versus the yen even as Moody’s said the nation’s sovereign ranking is “stable.” The European Commission said yesterday that the U.K. government faces a “challenge” to implement its planned budget-deficit reduction program and some of its growth forecasts are too optimistic. Data today showed U.K. shop-price inflation decelerated in May.

King’s Position on Record-Low Rate Boosted by Fisher Caution on Recovery (Source: Bloomberg)
Bank of England Governor Mervyn King’s push to keep interest rates at a record low may have strengthened this month as his top official for financial markets leads a defense against advocates for an increase. Paul Fisher said last week he wants to be sure the economy is over its “soft patch” before the key interest rate is increased and that officials who share his view should be more vocal. The King and Fisher faction of the divided Monetary Policy Committee will probably see their argument win again today, with all 55 economists in a Bloomberg News survey forecasting the bank will leave the benchmark at 0.5 percent.

N.Z. Keeps Key Rate at 2.5% to Boost Recovery (Source: Bloomberg)
New Zealand’s central bank kept its benchmark interest rate at a record low today, while signaling it will need to boost borrowing costs to contain prices as the nation recovers from its deadliest earthquake in 80 years. “As gross domestic product growth picks up, underlying inflation is expected to rise,” Governor Alan Bollard said in a statement today in Wellington after leaving the benchmark at 2.5 percent. “A gradual increase in the official cash rate over the next two years will be required to offset this.”

Brazil Raises Key Interest Rate to 12.25% After Inflation Exceeds Target (Source: Bloomberg)
Brazil’s central bank raised its benchmark interest rate for a fourth straight meeting today after consumer prices exceeded the upper limit of its target range for the first time since 2005.

FOREX-Dlr hovers near 1-mth lows vs yen, euro capped
LONDON, June 8 (Reuters) - The dollar dropped to a one-month low against the yen on Wednesday while commodity currencies fell as investors pared holdings in riskier assets, driven by fears that a slow U.S. economic recovery could drag on global growth.
The yen rose broadly, pushing down the dollar to 79.75 yen -- its lowest since May 5 -- after a series of stop-loss orders were triggered as the U.S. currency failed to hold support around the 80 yen level.

20110609 0942 Global Commodities Related News.

Corn (Source: CME)
US corn futures rise sharply on increasing demand from end-users, with ethanol producers bidding up prices to secure grain while increasing output 0.7% last week. Meanwhile, market participants predict the USDA will cut its already-low inventory forecasts in a monthly crop report Thursday amid strong demand. Some expect the agency will also reduce its outlook for the next harvest due to planting delays this spring. That could keep inventories tight through next year. CBOT July corn climbs 27 1/2c to $7.64/bushel.

Wheat (Source: CME)
US wheat futures close stronger on spillover support from a 3.7% rally in the corn market. Corn's gains lift wheat as market participants expect livestock producers will increasingly feed wheat to animals and cut back on corn feedings. Corn closes above wheat in a reversal of their typical roles as traders are nervous about shrinking corn supplies and less concerned about looser supplies of feed wheat. CBOT July wheat rises 14 1/4c to $7.48/bushel while KCBT July gains 10 12/c to $8.85 and MGE July surges 36 3/4c to $10.21 1/2.

Rice (Source: CME)
US rice futures edge higher, taking their cue from rallies in the wheat and corn markets. Rice looks to wheat for direction as both grains are global food staples. Traders also worry about the potential for declining grain inventories ahead of a monthly USDA supply-and-demand report. CBOT July rice rises 1/2c to $14.77 1/2 per hundredweight.

U.S. corn rises for 2nd day, wheat firm after selloff
SINGAPORE, June 8 (Reuters) - Chicago corn ticked higher on Wednesday, rising for a second straight day as investors took positions ahead of a key U.S. government report which is expected to show tight old-crop supplies amid relentless demand from ethanol and feed producers.
"The supportive factor for corn is tightness in old-crop supply and also the expectation that the USDA may trim the 2010/11 corn carryout figures because high prices have been insufficient in curbing demand," said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia.

Russia wheat pegged at $295/T FOB, exports 10 mln t
GELENDZHIK, Russia, June 8 (Reuters) - Export prices for Russian wheat stood at $295 per tonne FOB basis in the key Black Sea port of Novorossiisk, and should climb only slightly when exports re-open in July, a top analyst said on Wednesday.
Dmitry Rylko, general director of the Institute for Agricultural Market studies (IKAR) told a Grain Union conference in the Black Sea resort of Gelendzhik he saw FOB prices at $300 per tonne by Aug. 1.

Drought To Make French Soft Wheat Non-EU Exports Fall By Half (Source: CME)
The driest spring on record in France will lead to a decline of the country's soft wheat exports outside the European Union by more than half on the year, in the year starting in July. France AgriMer, the French government agency for agriculture and fisheries, expects that given the forecast for domestic demand and exports within the European Union, exports to non-EU countries is likely to fall to six million metric tons in the period between July 2011 and June 2012, from an expected record 13.2 million over the previous 12 months. The drought in the first half of 2011 will cause French soft wheat production to fall to 31 million metric tons in 2011-2012 from an expected 35.6 million tons in the 2010-2011. Soft wheat production would be the lowest since 2007-2008, France AgriMer said. The overall output will still be above the previous drought in 2003 when soft wheat fell to 29.1 million tons.
"Let's stop saying this will be a black year," said Xavier Rousselin, the head of France AgriMer's arable crops unit, adding the past few years were "outstanding." "A few years ago, we would have been glad to get such an output," he said. Rainfall during the coming months may offset somewhat the negative forecast, although damage is already beyond repair in some areas, Rousselin said. According to the French government weather agency Meteo France, the 2011 spring was both the warmest and the driest on record, with a higher average temperature and less rain than in 1976, the previous most severe drought since the agency started compiling the data. Exports to non-EU countries will be much lower than in 2010-2011 as French producers will first provide domestic needs and a strong demand from neighboring countries in the European Union.
The domestic demand for soft wheat is likely to rise as food companies will substitute barley --which output is likely to fall to 8.7 million tons-- with soft wheat, Rousselin said. France is likely to export eight million tons within the European Union in 2011-2012, up from 6.4 million in 2010-2011.

U.S. Corn-Crop Delays Signal Tightest World Supply Since 1974, Price Gains (Source: Bloomberg)
Wet weather that delayed corn planting in the U.S., the world’s largest exporter, may send global inventories to their lowest in 37 years, signaling higher costs for consumers and livestock producers. More than one-third of Midwest fields were planted after the mid-May target for optimal growth because of excessive rain, and Ohio farmers as of June 5 were the furthest behind since 1989, with 58 percent sown, government data show. Goldman Sachs Group Inc. said June 6 that the disruptions increase the “potential for a shortfall.”

Corn Advances for Third Day, Maintaining Premium to Wheat in Chicago Trade (Source: Bloomberg)
Wheat for July delivery gained 0.6 percent to $7.525 a bushel, rising for a second day, while corn increased 0.5 percent to $7.675 a bushel, climbing for a third day.

Reuters Summit-Natixis sees possible bubbles in commodities
LONDON, June 7 (Reuters) - The dislocation between loose U.S. monetary policy and rising rates in emerging nations will lead to more volatility and even bubbles in commodities, particularly in precious metals, says French investment bank Natixis.
The excess liquidity coursing through the financial markets that developed economy central banks such as the U.S. Federal Reserve or the European Central Bank pumped out during the global financial crisis has been a major driver in the rise in commodity prices.

Kenya delays resumption of coffee sales - officials
NAIROBI, June 8 (Reuters) - Kenya has delayed the resumption of its weekly coffee auction that had been set for June 7 after a cold spell affected drying of beans for milling, a senior exchange official said on Wednesday.
"Unfortunately there has been cold spell that has affected the drying of coffee parchment for milling. We now expect the auction to resume on June 28 and not June 7 as earlier planned," the official at the Nairobi Coffee Exchange told Reuters.

Vietnam robusta coffee trades at first premium since May 2010
SINGAPORE, June 8 (Reuters) - Vietnam's robusta coffee beans changed hands at premiums for the first time since at least May 2010 as stocks tightened ahead of the next harvest and after strong exports earlier this year, dealers said on Wednesday.
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.

Brazil to suffer ethanol fuel shortages for years
SAO PAULO, June 7 (Reuters) - Brazil, the world's largest grower of the most promising biofuel feedstock of the future -- sugarcane -- will suffer shortages of fuel ethanol for several years to come due to the lack of investment in new planting.
But regulatory change means uncertainty for the private sector, which is unwilling to plant more cane to meet both global demand for sugar and domestic demand for ethanol. As if matters weren't already bad after investments in new capacity stalled from the 2008 financial crisis, which pushed many heavily leveraged mills into bankruptcy.

Oil Gains for Third Day as OPEC Fails to Agree Quotas; U.S. Supplies Drop (Source: Bloomberg)
Oil rose for a third day in New York after OPEC failed to reach an agreement on production targets for the first time in at least 20 years and U.S. crude inventories fell more than analysts forecast. Futures gained as much as 0.7 percent after climbing 1.7 percent yesterday. The Organization of Petroleum Exporting Countries will maintain its current output for now, said Mohammad Aliabadi, the acting Iranian oil minister and OPEC president. A Gulf delegate said June 7 that the group would increase production targets. A U.S. government report showed crude supplies dropped the most since December.

OPEC Can’t Find Consensus on Oil Output (Source: Bloomberg)
OPEC failed to agree on crude production for the first time in at least 20 years after six countries opposed a Saudi Arabian push to increase supply as oil trades above $100 a barrel.

Gold Falls for Second Day on Bets Dollar Will Rebound on Bernanke Outlook (Source: Bloomberg)
Gold futures fell for the second straight day on speculation that the Federal Reserve won’t ease U.S. monetary policy further, boosting the dollar and eroding the appeal of the precious metal as an alternative asset. The greenback rose from a one-month low against a basket of six major currencies. Yesterday, Fed Chairman Ben S. Bernanke signaled that there won’t be a third round of so-called quantitative easing, and gold dropped 0.2 percent.

METALS-Copper falls on economic concerns, dollar
LONDON, June 8 (Reuters) - Copper fell more than 1 percent on Wednesday as the dollar rebounded from one-month lows and a bleak Federal Reserve assessment of the U.S. economy depressed market sentiment.
Federal Reserve Chairman Ben Bernanke late on Tuesday acknowledged the economy had slowed but offered no hint the U.S. central bank is considering any more stimulus to accelerate growth.

PRECIOUS-Gold slips as Bernanke dampens QE3 expectations
LONDON, June 8 (Reuters) - Gold fell on Wednesday after Federal Reserve Chairman Ben Bernanke offered no hints of further U.S. monetary easing in a speech a day earlier, taking pressure off the dollar.
Bernanke acknowledged the U.S. economy has slowed but offered no hint that the central bank is considering any more stimulus to accelerate growth.

Nickel Pig Iron Output in China Seen Surging in Challenge to Refined Metal (Source: Bloomberg)
Nickel pig iron output in China, the world’s largest metals user, may surge 50 percent this year, possibly curbing demand for the refined product and hurting prices that have lagged behind all other base metals in London.

Copper to Surge to Record by Year’s End on Chinese Demand, Barclays Says (Source: Bloomberg)
Copper prices will rise to a record $12,000 a metric ton by the end of the year as China’s imports rebound, said Nicholas Snowdon, an analyst at Barclays Capital in London. “The Chinese market is awakening from the destocking cycle that lasted nine months,” Snowdon said today at a Metal Bulletin conference in New York. “Their backyard inventories have been completely depleted. By July, we will begin to see a steady increase in imports.”

Rio Tinto remains cautious on aluminum outlook
NEW YORK, June 7 (Reuters) - Rio Tinto Alcan   sees strong demand for aluminum in all sectors, but remains cautious about its medium-term outlook because of the high level of the inventories in London Metal Exchange warehouses, said chief executive Jacynthe Cote on Tuesday.
Concerns about European debt, U.S. unemployment, Chinese inflation, and the pace of the recovery in Japan also cloud the near-term view of aluminum demand, the executive said.

Novelis bullish on aluminum prospects
NEW YORK, June 7 (Reuters) - Novelis, which recycles cans to make aluminum products, expects earnings to almost double in the next four years as demand increases, especially from automakers, its chief executive said on Tuesday.
Philip Martens also expects the price of aluminum to remain around $2,600 to $2,700 per tonne for the foreseeable future, even as the global economy shows signs of strengthening.

Alcoa sees much scope for aluminum to replace copper
NEW YORK, June 7 (Reuters) - Alcoa Inc.  Chief Executive Klaus Kleinfeld said on Tuesday that no one is happier to see copper prices climbing than he is, because that meant substitutions into aluminum would increase.
Speaking at The Aluminum Summit hosted by AMM, the head of the largest U.S. aluminum producer said: "I'm happy that the copper price has gone up. Every time it rises, those people who use copper are calling us, because they want to replace copper with aluminum."

China daily crude steel output falls 3.46 pct over May 21-31
BEIJING, June 8 (Reuters) - Daily output of crude steel in China in the last 11 days of May fell 3.46 percent compared with the previous 10 days, reaching 1.915 million tonnes, according to data issued on Wednesday by the China Iron and Steel Association.
The figure would amount to almost 699 million tonnes if calculated on an annualised basis, compared to 627 million tonnes of output for all of last year.

Indonesia May tin exports fall 4 pct due to stockpiling
JAKARTA, June 8 (Reuters) - Indonesia's refined tin exports fell 4 percent in May from the same month last year, despite rising production as exporters kept stocks in warehouses on hopes of improving prices, an official at the trade ministry said on Wednesday.
Indonesia, the world's top tin exporter, shipped 7,013.28 tonnes of refined tin last month, compared to 7,332.46 tonnes in the year-ago period, trade ministry data showed.

China to create rare earth monopoly in Inner Mongolia
BEIJING, June 8 (Reuters) - China will shut down 35 rare earth producers in the region of Inner Mongolia and entrust all exploration, production and processing of the metals to a single company, the Baotou Steel Rare Earth Group , the Ministry of Industry and Information Technology said.
The restructuring of the sector will be completed by the end of this month, according to a statement on the ministry's website.

20110609 0941 Soy Oil & Palm Oil Related News.

Soy Oil chart reading : side way range bound little upside biased
Soybeans (Source: CME)
US soybean futures follow corn's lead, with the uncertainty of acreage and production in the face of tight supplies coupled with spillover strength from rebounding crude-oil futures underpinning prices. The influence of corn sparked buying across the grain and soy complex as market participants don't expect much in the way of changes out of the USDA's monthly report Thursday, with the average guess for small increases in carryout. CBOT July soybeans end up 0.5% at $14.01 1/2 a bushel.

Soybean Meal/Oil (Source: CME)
US soymeal futures rallied with soybeans, garnering additional support from concerns about tightening supplies amid reduced transportation capabilities the possible closure of some soy processing plants due to Missouri River flooding, analysts said. CBOT July soymeal ended up 1.2% at $372.80/short ton, and July soyoil settled up 0.02% at 57.94 cents/pound.

Palm oil at 3-wk low on high stocks, markets
KUALA LUMPUR, June 8 (Reuters) - Malaysian palm oil dropped to a three-week low on Wednesday as investors adjusted positions on weak technicals, lacklustre external markets and expectations of high stocks.
"External markets are not giving much direction and palm oil is getting weighed down by the high stocks," said a dealer with a local commodities brokerage.