Friday, June 10, 2011

20110610 1831 FCPO EOD Daily Chart Study.

FCPO closed : 3239, changed : -48 points, volume : lower.
Bollinger band reading : side way range bound little downside biased with possible pullback correction.
MACD Histrogram : fall lower, seller taking position.
Support : 3200, 3150, 3100, 3070 level.
Resistance : 3250, 3270, 3300, 3350 level.
Comment :
FCPO market closed recorded loss for the fifth day with little lower volume changed hand while soy oil overnight closed about the same and currently trading weaker.
Overnight U.S. Department of Agriculture larger projected inventories for soybean, 16 month high palm oil stock level, growing production and not encouraging export data by MPOB added to the negative sentiment of today market.
Daily chart formed a down doji bar candle with longer upper shadow closed outside lower Bollinger band level after market opened lower, tested near resistance level and fall lower to closed near the low of the day.
Chart reading turned to suggesting a side way range bound little downside biased market development with possible pullback correction.
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.

20110610 1745 FKLI EOD Daily Chart Study.

FKLI closed : 1551 changed : -1 points, volume : higher.
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 loss with better volume exchanged doing 5 points discount compare to cash market that closed recorded gain loss and regional markets (Asia and Europe) having mixed development while overnight U.S. market finally have a technical rebound.
Major news will be U.S. recorded unexpectedly recorded narrow trade deficit and The Bank of Korea raised interest rates for a third time this year. 
Daily chart formed a down doji bar candle closed near middle Bollinger band level after market opened and tested higher, slide down lower slowly towards the end before recovered slightly still closed above support level.
Technical reading remained suggesting a correction range bound upside biased market development testing support and resistance level with MACD indicator almost having negative cross down.
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.

20110610 1610 Soy Oil & Palm Oil Breaking News.

Reuters Survey :
  • India May 2011 vegetable oil imports seen up 37% to 650,625 tonnes vs Apr 2011.
  • India May 2011 palm oil imports seen up 50%, soy oil imports seen up 95% vs Apr 2011.
  • India vegetable oil could rise in Jun 2011.

20110610 1528 Global Market & Commodities Related News.

Stocks dip, led by tech; euro at 1-week low
HONG KONG, June 10 (Reuters) - Asian stocks slipped on Friday, at risk of a seventh straight day of losses, led by selling in the technology sector, though cheap valuations kept Japan's market in the black.
"Given that the Nikkei has risen for the past three sessions despite falls in Wall Street, some players may think it's time for profit-taking," said Takashi Hiroshi, chief strategist at Monex Securities.

Brent at 5-wk high on positive US data, supply fears
SINGAPORE, June 10 (Reuters) - Brent crude rose to $120 a barrel for the first time in five weeks, while U.S. oil climbed above $102 a barrel, on better-than-expected data from top consumer United States and supply worries triggered by OPEC's failure to agree on an output hike.
"The better-than-expected U.S. trade deficit results boosted not only the U.S. equities but commodities as well," said Singapore-based oil analyst Serene Lim of ANZ Bank. "The positive sentiment continued into Asia's morning trades."     

OPEC ready to act if needed, split was over data
VIENNA, June 9 (Reuters) - Economics, rather than politics, was behind the collapse of this week's OPEC talks and the group as a whole would act if it grew worried about oil supplies running short, a top OPEC official said on Thursday.
The Organization of the Petroleum Exporting Countries met for the first time this year on Wednesday and for the first time in around a decade failed to make a decision on output policy.

Global corn supply tightens as U.S. grows less
WASHINGTON, June 9 (Reuters) - Global corn supplies will be much tighter next year than forecast a month ago, the U.S. government said on Thursday as it unexpectedly cut its estimate for the U.S. crop and forecast a jump in demand from China.
Chicago corn futures briefly spiked to an all-time high after the U.S. Agriculture Department (USDA) said rains and floods prevented farmers from planting all the corn they had intended, cutting the likely size of the crop by 2 percent, an unusual revision just weeks ahead of its annual June survey.

Soy crush recovery looks set to last: Gavin Maguire
CHICAGO, June 9 (Reuters) - After months of being mired close to multi-year lows, U.S. soy crush values are starting to push higher thanks to the prospect of higher-than-projected soybean plantings brought about by a rainy spring that prevented farmers from being able to complete corn seedings on time.
And with soymeal prices edging higher on the back of expectations that crushing facilities in the western Corn Belt will shutter should the Missouri river burst its banks in late June, crush values may start to gather upside momentum over the coming months.

U.S. corn edges back after scaling record highs
SYDNEY, Jun 10 (Reuters) - U.S. corn futures posted modest falls in early Asian trade on Friday after hitting record highs on Thursday as the U.S. government scaled back crop prospects in the country's corn belt due to rain-delayed plantings threatening yields.
In a monthly grains and oilseeds report, the government also sliced its estimate of corn stocks held by the world's top exporter of the grain.

China May soy imports up 17.5 pct vs April
BEIJING, Jun 10 (Reuters) - China, the world's largest soy buyer, imported 4.56 million tonnes of soybeans in May, up 17.5 percent from 3.88 million tonnes in April, figures from the General Administration of Customs of China showed on Friday.
Despite negative crushing margins, Chinese crushers have increased imports to take advantage of peak seasonal demand for animal feed from June. May imports were also slightly higher than the year-ago period at 4.37 million tonnes.

China feed mills shifting to more cheap wheat from corn
BEIJING, June 10 (Reuters) - China's feed mills are using more cheap wheat as a substitute for corn, with wheat prices now 9.3 percent below corn as the wheat harvest nears, traders said on Friday.
Physical wheat  in most of China's northern areas was more than 200 yuan ($31) per tonne cheaper than corn , enough to attract feed mills, and the price gap is likely to expand further after large quantities of new wheat hit the market, they said.

U.S. 2011 crop weather not a repeat of 1983-Cropcast
CHICAGO, June 9 (Reuters) - The rainy conditions in the U.S. Midwest this spring that stalled corn and soy planting have prompted comparisons in the grain trade to 1983, a very poor year for crops that featured similar spring weather.
But the similarities to 1983 are limited, a meteorologist with Cropcast, a division of MDA Information Systems, said in a statement on Thursday.

Argentina soy output seen at 50.3 mln T-exchange
BUENOS AIRES, June 9 (Reuters) - Argentina's 2010/11 soy output is seen totaling 50.3 million tonnes, up slightly from the 50.2 million tonnes forecast last month, the Rosario grains exchange said on Thursday.
Argentina is the world's No. 3 soybean exporter and the biggest soymeal and soyoil supplier. The Agriculture Ministry expects this season's soy crop, which farmers have nearly finished harvesting, at 50.4 million tonnes.

Drought-hit Texas farmers on brink of writing off cotton
NEW YORK, June 9 (Reuters) - Reeling from the worst drought in a century, cotton farmers in Texas are on the brink of writing off their withered plants this year and collecting the insurance.
"We cannot make this crop with no relief from hot temperatures and the wind," said Gary Evitt, a cotton farmer for over 40 years working on 2,000 acres of irrigated cotton outside Lubbock, Texas, in the heart of the Lone Star State's cotton area. "This is the worst (drought) I have seen."

Copper ends up in anticipation of China trade data
NEW YORK/LONDON, June 9 (Reuters) - Copper eked out a modest gain by the close on Thursday, as expectations for a rebound in Chinese imports counterbalanced the negative macro-economic impact from weekly U.S. jobless claims figures.
"It's a bright spot in an otherwise gloomy economic landscape, so it suggests that the U.S. economy is getting support from a least one quarter -- the trade sector," said Peter Buchanan, commodities analyst and senior economist at CIBC in Toronto.

China copper imports fall 3 percent on month in May
HONG KONG, June 10 (Reuters) - China's imports of unwrought copper and semi-finished copper products dropped 3 percent in May after falling 13.7 percent in April because of high stocks.
The world's top copper consumer imported 254,738 tonnes of copper in the form of anode, refined and alloy, and semi-finished products such as rods versus 262,676 tonnes in April, data from the General Administration of Customs showed on Friday.

China's iron ore imports up 0.8 pct in May, June may fall
SHANGHAI, June 10 (Reuters) - China's iron ore imports rose 0.8 percent to 53.3 million tonnes in May from the previous month, official data from China's customs authority showed on Friday.  
Chinese steel mills, which usually consume two-thirds of seaborne iron ore, have raced to expand production since this year, despite Beijing's tightening moves to tame inflation and curb the hot property market.

Strike nears end at Chile copper mine, output rises
SANTIAGO, June 9 (Reuters) - Output should return to normal in days at the world's No. 5 copper mine, El Teniente in Chile, after thousands of contractors abandoned a 16-day strike that seems near its end, the company said.
Staff workers also decided to return to work on Friday after strikers began wage talks with their employers to resolve a sometimes violent 16-day walkout that is losing strength.

US copper imports up despite weaker housing sector
NEW YORK, June 9 (Reuters) - Inbound shipments of copper into the United States rose for a second-straight month in April to their highest levels since March 2009, as fragments of the economy continued to thrive even as housing weakened further.
Data from the U.S. international Trade Commission on Thursday showed April copper imports climbed to 73,061 tonnes from 66,166 tonnes in March, to stand at their highest since March 2009, when imports came to 79,975 tonnes.

Gold drifts in small range; dollar, Greece crisis aid
SINGAPORE, June 10 (Reuters) - Spot gold moved in a narrow range on Friday, underpinned by a slightly weaker dollar and ongoing concerns about the Greek debt crisis.
"Gold is in a consolidation mode," said Hou Xinqiang, an analyst at Jinrui Futures in China.

20110610 1134 Global Market & Crude Oil Related News.

GLOBAL MARKETS: Stocks bounce, dlr rises; China data eyed
HONG KONG, June 10 (Reuters) - Asian shares climbed on Friday, snapping a six-day losing streak, as strong U.S export data tempered fears that its economy may be stalling, though gains may be short-lived before Chinese trade data.
"I suspect the Nikkei will be bought initially today after a rise in U.S. shares. But given that the Nikkei has risen for the past three sessions despite falls in Wall Street, some players may think it's time for profit-taking," said Takashi Hiroki, chief strategist at Monex Securities.

OIL: Brent hits 5-week high on supply fears after OPEC
NEW YORK, June 9 (Reuters) - Brent crude rose 1.5 percent on Thursday, reaching a five-week high as OPEC's surprise failure to reach a deal on raising output stoked more fears of leaner supplies later in the year.
"The OPEC situation actually got prices a little bit higher. I think it set a change in mentality for a lot of traders especially after we broke above the consolidation (seen in recent weeks)," Mike Zarembski, senior commodities analyst for OptionsXpress in Chicago.

NATURAL GAS: Natgas ends down 3.6 pct after early 10-mth high
NEW YORK, June 9 (Reuters) - Front-month U.S. natural gas futures, which hit a 10-month high early Thursday, ended down sharply on Thursday, pressured by milder U.S. weather forecasts for next week and a report showing a weekly inventory build slightly above market expectations.
"We tested $5 resistance and sellers came out of the woodwork before the (EIA) number. The (milder) weather should take some of the steam out of the market," said Ed Kennedy, senior vice president at INTL Hencorp Futures in Miami, noting the inventory build was a little above expectations.

EURO COAL: Jly S.African trades at API4 minus $3/T
LONDON, June 9 (Reuters) - Lack of demand for prompt South African spot coal is finally starting to be reflected in physical prices, traders and utilities said on Thursday.
"South African is the unwanted problem child of the coal market today," one trader said.

COMMODITIES: Oil rises again on OPEC; corn at record high
NEW YORK, June 9 (Reuters) - Commodities jumped for a second straight day on Thursday as oil rose again on fears of tight supplies after OPEC failed to decide on output policy, while corn hit record highs on a cut in U.S. crop estimates.
"(OPEC's) non-outcome reinforces the floor under oil prices and leaves the output gap in place. But there is clear evidence of a slowdown in the global economy keeping demand in check," said Harry Tchilinguirian, energy analyst at BNP Paribas.

Saudi to supply full July crude volumes to Asia
TOKYO, June 10 (Reuters) - Saudi Arabia, the world's top crude exporter, will supply full contracted volumes of crude oil in July to at least two Asian term buyers, steady from June levels, industry sources familiar with the matter said on Friday.
There were no adjustments in allocated volumes of heavy and light crude grades, the sources said, adding that the move was "in line with expectations".

Colombia oil output continues to hit record highs
BOGOTA, June 9 (Reuters) - Colombia's oil production shot up 19 percent to 923,000 barrels per day (bpd) in May versus a year ago, continuing to break historic records, the National Hydrocarbons Agency said on Thursday.
Latin America's No. 4 oil producer has seen oil output rise to record highs mainly due to better security, heavy crude and incremental production at existing fields, experts say.

Asia eyes more Saudi oil despite fractious OPEC meet
BEIJING/SINGAPORE, June 9 (Reuters) - Asian refineries are confident Saudi Arabia will ensure no shortage of oil supply to meet rapidly rising demand this year despite OPEC's failure to agree an output increase this week.
But demand in the region could suffer in the long term if the failure of the producer group to send a clear signal to markets keeps oil above $100 a barrel.

20110610 1129 Local & Global Economic Related News.

Malaysia: Production unexpectedly fell after Japan disasters
Malaysia’s industrial production unexpectedly fell in April as manufacturers and mining companies decreased output and Japan’s record earthquake disrupted trade in the Asian region. Production at factories, utilities and mines fell 2.2% from a year earlier after gaining a revised 2.9%. Slowing output may hurt Malaysia’s economic expansion this year as the 11 March earthquake and tsunami in Japan clouds the outlook for exporters from the Philippines to Thailand. The Southeast Asian nation’s overseas sales of electrical and electronic goods dropped even as commodity shipments rose in April, a report showed last week (Bloomberg)

Indonesia: Holds interest rate a fourth month as rupiah gains
Indonesia’s central bank kept its benchmark interest rate unchanged for a fourth straight month as a strengthening currency helped contain inflation in Southeast Asia’s largest economy. Bank Indonesia maintained the reference rate at 6.75%. President Susilo Bambang Yudhoyono’s policy makers have extended fuel subsidies and let the rupiah gain the most after Taiwan in Asia this year to damp price gains, as rising food and oil costs force China, Thailand, India, Vietnam, Malaysia and the Philippines to raise rates. Indonesia’s inflation eased for a fourth month in May, to below 6%. (Bloomberg)

OPEC: ‘Worst meeting’ ends without agreement, boosting prices
OPEC failed to agree on crude production for the first time in at least 20 years, with six members opposing a Saudi Arabian push to increase output, sending oil prices above USD101 a barrel. “It was one of the worst meetings we’ve ever had,” Saudi Oil Minister Ali al-Naimi said after representatives of the 12-member Organization of Petroleum Exporting Countries adjourned five hours of talks in Vienna. “We were unable to reach an agreement.” Crude in New York jumped 2.7% in the 20 minutes after the meeting ended. The split underscores growing divisions within the group that accounts for about 40% of the world’s crude. Saudi Arabia, OPEC’s largest producer, together with Kuwait, Qatar and the United Arab Emirates, proposed increasing group output by 1.5m barrels a day to 30.3m barrels. They were blocked by members including Iran and Venezuela, which warned of a “collapse” in prices. (Bloomberg)

EU: Trichet may signal July increase after keeping key rate at 1.25%
European Central Bank President Jean- Claude Trichet may signal the bank intends to raise interest rates in July after leaving the benchmark unchanged today. ECB officials kept the key interest rate at 1.25%, as predicted by all 52 economists in a Bloomberg News survey. Trichet is likely to call for “strong vigilance” on inflation, indicating a rate increase next month, a separate survey shows. ECB policy makers are concerned about oil-driven inflation feeding into wage demands. Their task of normalizing policy is being complicated by tensions with the German government over how much pain private-sector creditors should bear in tackling the Greek-led sovereign debt crisis. (Bloomberg)

EU: ECB won’t participate in Greek bond rollover, Trichet says
European Central Bank President Jean- Claude Trichet said the central bank won’t roll over its holdings of Greek government bonds even if private investors agree to such a move to avoid the euro region’s first default. “It is certainly not our intention,” Trichet said. European Union leaders are pushing for private investors to share the burden of financing a second rescue package for Greece, which remains shut out of financial markets a year after its EUR110bn (USD159bn) bailout. Convincing investors to voluntarily roll over their Greek bonds to prevent the country from having to pay maturing bonds has been gaining support among euro-region officials. (Bloomberg)

EU: Greece said to need EUR45bn in new EU, IMF loans
European governments and the International Monetary Fund would lend as much as an extra EUR45bn (USD65bn) to Greece under an expanded plan to avoid the euro area’s first sovereign default, two people with direct knowledge of the talks said. European estimates put Greece’s 2012-14 financing gap at as much as EUR170bn, the people said. It would be filled by the loans, plus around EUR57bn in unspent aid from last year’s bailout, roughly EUR 30bn in asset-sale proceeds and about EUR 30bn in rollovers by creditors. Structuring the rollovers remains the most sensitive part of the package, with European Central Bank President Jean-Claude Trichet warning on a teleconference of euro-area officials yesterday that German calls for a debt exchange might lead rating companies to declare Greece in default, the people said. (Bloomberg)

US: Trade gap narrows as exports rise to record
Record exports and lower oil purchases unexpectedly helped narrow the US trade deficit, easing concern that the world’s largest economy is faltering. The gap shrank 6.7% to $43.7bn in April, the lowest since December, Commerce Department figures showed today in Washington. Other reports showed applications for jobless benefits rose last week and consumer confidence improved. Stocks rallied on expectations trade will help boost economic growth in the second quarter. A 10% drop in the dollar over the past 12 months will probably keep lifting overseas sales at manufacturers like Dow Chemical Co., helping the economy counter slowing consumer spending and auto sales. (Bloomberg)

IMF: Sees 4.4% global growth even as economies hit ‘soft patch
International Monetary Fund acting head John Lipsky said his organization is standing by a 4.4% forecast for global growth this year even as developed economies hit a “soft patch.” Supply-chain disruptions from Japan’s earthquake are clearing “quite rapidly” and a moderation in energy prices may continue, Lipsky told reporters in Beijing today. Rising unemployment and falling home prices in the US, a debt crisis in European nations including Greece, Japan’s March 11 disaster and signs of a slowdown in China have fueled concern that the world expansion will falter. Asian stocks fell today, dragging the regional benchmark index to its lowest level in two weeks, after the Federal Reserve said the US economy is cooling in some regions. The factors that could lead the IMF to revise its forecast seem “temporary and likely to dissipate,” Lipsky said. (Bloomberg)

U.S: Initial jobless claims unexpectedly increased last week, a sign that the labor market is struggling to gain traction. Jobless claims increased by 1,000 to 427,000 in the week ended June 4. The number of people on unemployment benefit rolls and those receiving extended payments decreased. (Source: Bloomberg)

U.S: Household worth increases by USD 943b, Fed says as rising share prices outstripped declines in home values. Net worth for households and non-profit groups increased at a 6.8% annual pace to USD 58.1tr after rising at a 19% pace in the previous three months. American households also cut debt for a 12th consecutive quarter. (Source: Bloomberg)

Vietnam: Should curb 'intolerable' inflation, World Bank says. Vietnam's government should maintain a tight monetary and fiscal policy, including higher interest rates and tougher credit, until the currently "intolerable" inflation rate is less than 10%, the World Bank said. Officials will target reducing inflation to less than 10% by 2012, Deputy Prime Minister Nguyen Sinh Hung said at a meeting in the central Vietnamese town of Ha Tinh. Vietnamese inflation reached 19.78% YoY in May, the highest since December 2008. The government said on June 3 it's targeting 15% inflation this year, up from a previous projection of 11.75%. (Source: Bloomberg)

Australia: Employers added fewer workers than forecast in May as full-time jobs declined for a second month. The number of people employed rose by 7,800. The jobless rate held at 4.9%. (Source: Bloomberg)   

20110610 1116 Malaysia Corporate Related News.

 KLCI chart reading :
correction range bound upside biased.

UEM, Iskandar in RM850m Nusajaya development project
UEM Land Holdings Bhd is collaborating with Iskandar Investment Bhd, the main property developer for Iskandar Malaysia, to develop retail and residential units in Nusajaya, Johor with a gross development value of RM850m. Both parties signed a shareholder agreement yesterday through their subsidiaries UEM Land Bhd and Iskandar Harta Holdings SB. UEM Land Holdings managing director/chief executive officer Datuk Wan Abdullah Wan Ibrahim said a new company called Nusajaya Lifestyle SB had been formed to develop and manage the project. “UEM Land owns 55% equity interest in that company while the remaining is under Iskandar Harta,” he said at a press conference after the signing ceremony. (StarBiz)

MMHE to replace MAS in KLCI on 20 June
Malaysia Marine and Heavy Engineering Bhd (MMHE) will replace Malaysian Airline System (MAS) in the 30-stock FTSE Bursa Malaysia KLCI with effect from 20 June. FTSE Group and Bursa Malaysia said on 9 June the change was made following the semi-annual review of the FTSE Bursa Malaysia Index Series. The index series is reviewed semi-annually by the independent FTSE Bursa Malaysia Index Advisory Committee. The FBM KLCI reserve list, comprising the five highest ranking non-constituents of the index by market capitalisation, would be Nestle (M) Bhd. UEM Land Holdings, IJM Corporation, Airasia and SP Setia. Companies in the reserve list will replace constituents that become ineligible as a result of corporate actions, before the next review due on 8 Dec. MAS share price closed one sen higher at RM1.43 on Thursday, the lowest in recent years, while MMHE rose 22 sen to RM8.47. (Financial Daily)

Show-cause letters sent to several Sime directors
The Securities Commission (SC) has issued show-cause letters to several Sime Darby Bhd directors regarding possible breaches of the Listing Requirements, according to sources. This marks another step in the investigation into Sime Darby's four key projects involving its energy & utilities (E&U) division the Qatar Petroleum Project, the Maersk Oil Qatar Project, the Bakun Hydroelectric dam project and the Marine Project. “The SC has sent letters to a few directors in respect of whether certain listing rules regarding disclosure were satisfied or not,” said a source. (StarBiz)

Final assembly of MAS' A380 begins
The first Malaysia Airlines (MAS)' A380 has entered the Airbus final assembly line in Toulouse, France, for the final production phase. The final assembly process of an A380 is made up of five main phases, according to a statement from the Malaysian carrier. It will also have its engines installed and general tests conducted on its electric and hydraulic systems as well as mobile parts and landing gears. "Final ground and first engine tests take place in dedicated facilities outside of the main building," it said. The plane will then be ready for its first flight to Hamburg, Germany, where it will receive its cabin and painted in MAS livery, a more stylised version of the Malaysian "wau" (kite) which has been given a modern look reflecting the carrier's evolution into a truly global carrier. Malaysia Airlines has six A380s on order with deliveries due to begin in 2012. (Bernama)

RHB approves RM42m of green tech loans
RHB Bank Bhd has approved RM42m worth of loans in the six months of 2011 for green technology initiatives, going against the banking industry trend of seeing these initiatives as having high risk and less attractive as demand for green technology remains low. “We are at the forefront in providing green technology funding to green companies, with RM42m loans approved for this year,” RHB assistant vice president for SME business banking Chey Onn Wah said. (Malaysian Reserve)

Benalec: Unit target Mid-east investment with OIC Today. Benalec Bhd subsidiary has formed a strategic alliance with OIC Today magazine to attract investment from the Middle East for a proposed mixed commercial and tourism project in Klebang, Melaka. (Source: Business Times)

O&G: Perak approves RM5.8b investment in LNG project. The Perak government has approved a 60-ha site in Tanjung Hantu, Manjung for a liquefied natural gas (LNG) project involving an investment of RM5.8b that would be undertaken by Atigas Technology Sdn Bhd. The government is expected to save RM2b in subsidy a year because Atigas will sell the gas at the same subsidized price. (Source: The Edge Financial Daily)

Banking: Bank Mualamat still in merger mood. Bank Muamalat Malaysia Bhd is still keen to merge with a rival to build a mega Islamic bank, despite its failed attempt at courting Bank Islam Malaysia Bhd. The bank's pursuit of Bank Islam was driven by its largest shareholders' need to pare its stake in the bank and the desire by both its shareholders to create a bigger entity that is more relevant in the market. (Source: Business Times)

20110610 0956 Global Market Related News.

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

Emerging-Market Stocks Decline to Two-Week Low on Economy, Rates Concerns (Source: Bloomberg)
Emerging-market stocks fell, sending the benchmark index to a two-week low, on growing concern that central banks will increase interest rates even as the global economic expansion slows. The MSCI Emerging Markets Index dropped 0.3 percent to 1,142.24 at 4:30 p.m. New York time, the lowest since May 26. China’s Shanghai Composite Index lost 1.7 percent, while South Korea’s Kospi declined 0.6 percent. Poland’s WIG20 Index dropped 0.4 percent and the zloty fell 0.3 percent versus the dollar. Brazil’s Bovespa stock index gained the most in a week on lower- than-forecast inflation and rising commodities prices.

Asian Stocks Advance as U.S Confidence Rises (Source: Bloomberg)
Asian stocks rose, paring the regional benchmark index’s sixth weekly decline, as U.S. consumer confidence improved, easing concern that the global recovery will falter.

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.
"For the first time in a while, I'm hearing clients say they're short or are looking for shorts," said Todd Martin, Asia equity strategist at Societe Generale in Hong Kong

Fed:US default would be dangerous; Fitch may cut rating
NEW YORK, June 8 (Reuters) - A U.S. default would have     severe reverberations in global markets, a top Federal Reserve official said just hours after Fitch Ratings warned it could slash U.S. credit ratings if the government misses bond payments.
St. Louis Federal Reserve Bank President James Bullard told Reuters on Wednesday "the U.S. fiscal situation, if not handled correctly, could turn into a global macro shock."

U.S. Trade Gap Narrows as Exports Rise (Source: Bloomberg)
Record exports and lower oil purchases unexpectedly helped narrow the U.S. trade deficit, easing concern that the world’s largest economy is faltering. The gap shrank 6.7 percent to $43.7 billion in April, the lowest since December, Commerce Department figures showed today in Washington. Other reports showed applications for jobless benefits rose last week and consumer confidence improved.

U.S. Household Worth Increases by $943 Billion (Source: Bloomberg)
Household wealth in the U.S. climbed by $943 billion in the first quarter of 2011 as rising share prices outstripped declines in home values. Net worth for households and non-profit groups increased at a 6.8 percent annual pace to $58.1 trillion after rising at a 19 percent pace in the previous three months, the Federal Reserve said today in its flow of funds report from Washington. American households also cut debt for a 12th consecutive quarter.

Consumer Confidence in U.S. Improves on Fuel Prices, Bloomberg Index Shows (Source: Bloomberg)
Consumer confidence rose last week for the third consecutive time as lower gasoline prices lifted Americans’ outlook on their finances.

U.S. Stocks Advance After Record Export Levels Help Reduce Trade Deficit (Source: Bloomberg)
U.S. stocks advanced, snapping a six- day decline, as the trade deficit unexpectedly narrowed amid record exports and consumer confidence improved. The Morgan Stanley Cyclical Index of companies most-tied to economic growth rose 1 percent. Mosaic Co. (MOS) and CF Industries Holdings Inc. (CF) paced gains among fertilizer producers, climbing at least 4.2 percent, after the government reduced its corn-crop estimate. American International Group Inc. (AIG) advanced 2.9 percent as Deutsche Bank AG recommended buying the shares. Brown-Forman Corp. (BF/A) added 2 percent after the maker of Jack Daniel’s whiskey reported earnings that beat analysts’ estimates.

Dollar Falls Against Euro on Speculation U.S. Economic Recovery to Falter (Source: Bloomberg)
The dollar fell from a near one-week high against the euro on speculation the U.S. economic recovery will falter, damping demand for the nation’s assets.

Japan’s Producer Prices Rise for Eighth Month on Climbing Commodity Costs (Source: Bloomberg)
Japan’s producer prices rose for an eight month in May, pushed up by higher energy and raw material costs.

Nikkei 225 Advances for a Fourth Day as U.S Consumer Confidence Improves (Source: Bloomberg)
The Nikkei 225 Stock Average gained for a fourth day as U.S. consumer confidence improved, easing concern that the global recovery will falter.

South Korea Producer-Price Inflation Slows Ahead of Interest-Rate Meeting (Source: Bloomberg)
South Korea’s producer prices rose at the slowest pace in four months, bolstering the case for the nation’s central bank to keep borrowing costs on hold for a third straight month today.

Euro Slides After ECB Inflation, Growth Forecasts Spur Paring of Rate Bets (Source: Bloomberg)
The euro weakened after the European Central Bank signaled a July interest rate increase while damping investor expectations for further moves by reiterating that inflation will fall below its 2 percent limit next year. The shared currency fell for a second day against the dollar as traders closed out earlier bets on future ECB rate increases. New Zealand’s currency climbed to a record after the nation’s central bank said borrowing costs will need to rise in the next two years. The Dollar Index reached the highest in a week on speculation that dollar declines had gone too far.

Greece Is Said to Require $65 Billion More in Emergency Loans From EU, IMF (Source: Bloomberg)
European governments and the International Monetary Fund would lend as much as an extra 45 billion euros ($65 billion) to Greece under an expanded plan to avoid the euro area’s first sovereign default, two people with direct knowledge of the talks said.

Trichet Signals Rate Increase in July With ‘Strong Vigilance’ on Inflation (Source: Bloomberg)
The European Central Bank signaled a July rate increase while damping investor expectations for further moves by reiterating a forecast that inflation will fall below its 2 percent limit next year.

King’s Stance Aided by Fisher’s Caution on Recovery as BOE Holds Key Rate (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 nine-member Monetary Policy Committee, led by King, held the key rate at 0.5 percent today, as forecast by all 55 economists in a Bloomberg News survey.

Brazil Signals More Rate Increases to Come After Raising Selic to 12.25% (Source: Bloomberg)
Brazil’s central bank raised the benchmark lending rate for a fourth straight time and signaled it is prepared to increase borrowing costs further, bucking economists’ projections. Policy makers kept a pledge to raise borrowing costs for a “sufficiently long period” to bring inflation back to target in 2012, in a statement accompanying yesterday’s decision to boost the Selic a quarter-point to 12.25 percent. Analysts had expected the rate to reach 12.50 percent in July and remain there until year-end, a June 3 central bank survey said.

FOREX-Euro gains ahead of ECB meeting, upside capped
LONDON, June 9 (Reuters) - The euro rose broadly on Thursday as investors geared up for hawkish signals from the European Central Bank that would boost the single currency's yield differentials.
But there was a risk of a correction in the euro if the ECB appeared dovish by flagging a slower pace of interest rate hikes later in the year, given a possible global slowdown and the lingering Greek debt crisis. 

20110610 0952 Global Commodities Related News.

Corn (Source: CME)
US corn futures finish at record high as USDA increases supply concerns by slashing its inventory outlooks more than expected. Traders worry poor weather will prevent farmers from harvesting a large crop. USDA projects inventories will dwindle in the coming year even if they harvest a record crop. "Corn traders will likely stay on their buying spree and bring buyers to the other grains as well," predicts John Roach of Roach Ag Marketing. CBOT July corn closes up 21 1/2c at $7.85 1/2 a bushel, topping the previous high close of $7.76 from April.

Wheat (Source: CME)
US wheat futures fall as federal forecasters raise their outlook for global inventories. The increases for 2010-11 and 2011-12 season-ending stocks were "decidedly bearish," writes Doane Advisory Services. Traders say there is enough wheat to go around, particularly low-quality wheat that can be used to feed livestock. In the US, the harvest is accelerating in the South, bringing new supplies in from the fields. The USDA estimated output above expectations. CBOT July wheat drops 3c to $7.45/bushel, KCBT July loses 13 3/4c to $8.71 1/4 and MGE July slips 3/4c to $10.20 3/4.

Rice (Source: CME)
US rice futures rise as the USDA cuts its view on ending stocks due to planting disruptions from flooding. The 2011-12 inventory forecast drops 13% from last month to 42.1M hundredweight. The outlook declines, as planted area was lowered 5.6% to 2.85M acres. Flooding in the Mississippi River Delta in the mid-South reduced plantings, with long-grain rice in Arkansas and Missouri accounting for most of the losses. CBOT July rice jumps 16 1/2c to $14.94 per hundredweight.

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.

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.

Rains return to the US Midwest, stall late planting
CHICAGO, June 8 (Reuters) - Showers will begin late Wednesday in the western U.S. Midwest and continue off and on through the weekend, ending a week-long stretch of mostly clear skies that promoted late planting, a forecaster said Wednesday.
"I would think the onset of this rain would put an end to any further corn planting. Farmers will either take prevent planting or go to soybeans," said Telvent DTN forecaster Mike Palmerino.

Canada farm department lowers crop area due flooding
WINNIPEG, Manitoba, June 8 (Reuters) - Canada's agriculture department has lowered its estimates of crop harvested areas, as flooding and excessive rain look to leave much land fallow this year.
Agriculture Canada released its grain and oilseed outlook, which is based on analysis not a farmer survey, late on Tuesday.

Monsoon to reach India's rice areas this weekend
NEW DELHI, June 8 (Reuters) - Monsoon rains are expected to arrive over India's main rice growing areas this weekend, which could help erase an initial delay in planting of the main summer food crop, weather office sources said on Wednesday.
Monsoon normally spreads to the rice belt of West Bengal and Orissa states in the east by the first week of June, but this year it had paused for about three days.

U.S. wheat rallies as crop forecasts shrink
CHICAGO, June 8 (Reuters) - Hot and windy weather is helping the Kansas wheat harvest progress rapidly, and yield reports are widely variable.
The weather likely stressing any late-filling hard red winter wheat in southern Kansas, but further northward conditions are generally favorable. Hot and dry weather permitting active harvest of winter wheat in drought-plagued Texas and Oklahoma.

US corn adds to gains ahead of USDA report
SYDNEY, June 9 (Reuters) - U.S. corn futures edged up 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.

Late sowing, high demand trim US corn stocks - trade
WASHINGTON, June 9 (Reuters) - The U.S. government will forecast tighter corn supplies through the fall of 2012 thanks to a cold, rainy spring that took the top off this year's crop, analysts said ahead of an update of crop prospects.
Strong demand by livestock feeders and ethanol makers will mean smaller-than-expected supplies this summer, they said. And the new corn crop, even if it is record-large, would barely meet demand during the marketing year that opens on Sept. 1.

US corn adds to gains ahead of USDA report
SYDNEY, June 9 (Reuters) - Analysts expect the U.S. Department of Agriculture (USDA) monthly supply and demand report at 1230 GMT to cut the end 2010/11 estimate for U.S. corn stocks to 706 million bushels, from 730 million bushels forecast in May.
"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.

EU grain output revised down on low rain-attache
WASHINGTON, June 8 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in the European Union:
"With significantly less rainfall than normal recorded in the past three months in the key growing areas in France, Germany and the UK, farmers are reported to be increasingly concerned about both grain yield and quality, particularly in northwestern France. As such, the EU27 grain crop forecast is now revised downward to 277 million tonnes. The focus firmly remains on the EU ending stock number despite a reduction in forecast feed and industrial grain usage and in exports."

France To Help Drought-Hit Farmers With Around EUR1B-Prime Minister (Source: CME)
France will make available around EUR1 billion of aid through a variety of mechanisms to help farmers suffering from the impact of drought, French Prime Minister Francois Fillon said. "It is our independence and food security that is at stake," Fillon told senators. "In addition to emergency measures for transport and fighting speculation in animal feed, the President [Nicolas Sarkozy] has announced an expression of national solidarity that I would put at EUR1 billion," he said. Fillon said the figure is not very precise as it depends on the quantity of requests made by farmers. Firstly, the government will ensure that the necessary credits are available from its national agricultural emergency fund. A payment of EUR200 million will be made into the fund to respond to the most urgent cases, Fillon said. Secondly, the state will grant an exoneration from taxes on land without buildings for around EUR350 million.
Thirdly, the government will delay repayments of loans taken out by farmers in 2010 as part of state support for agriculture during the economic crisis, Fillon said. All the aid will be distributed through procedures that are accepted by the European Union, Fillon added.

Crop Weather Mayhem Delays U.S. Corn, Rice Planting as Prices Extend Gains (Source: Bloomberg)
When the overflowing Mississippi River breached Arkansas’s levees and flooded Michael Oxner’s farm in May, the waters didn’t just wipe out his hopes of planting 1,400 acres of rice. It destroyed last year’s crop, too. Water inundated the bins that held the rice he’d harvested in 2010, ruining 25,000 bushels and leaving a fermented smell that turned his remaining grain into pet food. Oxner lost $375,000 in 2010 rice alone. His rice land, along with 300 acres planted with corn, won’t be usable this season, Bloomberg Businessweek reports in its June 13 issue. Since it’s too late to plant more corn, the 2,000 acres he has left will go into soybeans, which grow faster than other crops but fetch less on the market. Even with soybeans, Oxner is cutting it close: Soybeans usually go into the fields in May. This year’s planting started on June 4.

Corn Trades Near Three-Year High Almost 40 Cents More Expensive Than Wheat (Source: Bloomberg)
Corn for July delivery traded little changed at $7.8475 a bushel after jumping as much as 3.8 percent yesterday to the highest level in three years following the U.S. Department of Agriculture’s estimate cutting supplies.

China a wild card for commodities- MF
NEW YORK, June 8 (Reuters) - China is a wild card for global commodity prices, but with a slowing economy it's a more likely trigger to a downdraft than the U.S. dollar, a senior analyst at brokerage MF Global said on Wednesday.
China has been the world's growth engine for the past decade. But with an annual growth rate close to double-digits and an undervalued currency, the government has been trying to tap down a rising pace of inflation.

China's commodity imports seen subdued in May
BEIJING, June 9 (Reuters) - Chinese trade data on Friday may show imports of major commodities were subdued in May, with an expected revival in copper shipments not yet underway and crude oil cargoes hit by higher prices after four months of bumper volumes.
The standout may be the soybeans trade, which is thought to have gathered pace in May after a lull in seemingly insatiable demand from the world's biggest buyer.

Coffee, cocoa firm, sugar slips, soft dollar underpins
LONDON, June 9 (Reuters) - ICE arabica coffee futures firmed early with upside capped by Brazil's harvest, while cocoa edged up, although potential further gains were limited by a steady flow of supplies from top producer Ivory Coast.     Liffe white sugar futures eased, consolidating after rising to a six-week high this week, driven by shortages during a period of high demand before Ramadan in August.

Cotton area jumps in India's Punjab, Haryana
CHANDIGARH, India, June 9 (Reuters) - Farmers in India's northern Punjab and Haryana states have raised area under cotton for 2011/12 cotton year beginning in October after they received higher prices this year, state farm ministry officials said.
Cotton marketing year in India runs from October to September, though farmers start cultivation from May onwards.

Brazil mills to shift more cane to ethanol-analyst
SAO PAULO, June 8 (Reuters) - Brazil's center-south could divert slightly more cane to ethanol production than initially expected in the current season as prices of the fuel remain buoyed by strong demand, Job Economia analysts said Wednesday.
After reaching record levels earlier this year, prices of the fuel slumped in early May with the start of the 2011/12 cane crop harvest but then stabilized again in recent weeks.

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.

US ethanol production climbs to 915,000 bpd-EIA
KANSAS CITY, June 8 (Reuters) - U.S. ethanol production rose to the highest level since late January in the latest reporting week, even as stocks dropped to their lowest in six weeks, the government said on Wednesday.
Ethanol output totaled 915,000 barrels per day (bpd) for the week ended June 3, up 6,000 bpd from the prior week, the Energy Information Administration said.

Ivory Coast cocoa prices firm on rising demand
ABIDJAN, June 8 (Reuters) - A purchase manager for an international exporter said local grinders were buying enough beans to run their factories with prices ranging from 775 CFA francs ($1.73) to 875 CFA francs compared with an average of 850 CFA francs the previous week.
"The price margin is wide because there is a lot of humidity and mouldy beans in the deliveries," the manager said, requesting not to be named.

India allows extra 1 mln bales of cotton exports
NEW DELHI/MUMBAI, June 8 (Reuters) - India allowed an extra one million bales of cotton exports on Wednesday and will review within two months whether to permit further overseas sales of the fibre at a time when global demand appears to be flagging.
India, the world's second biggest grower and exporter of the fibre, had already allowed 5.5 million bales (1 bale = 170 kg) in the current cotton year which started in October.

Mauritius 2011 sugar output seen falling 7 pct
PORT LOUIS, June 8 (Reuters) - Mauritius' sugar output is seen falling to 420,000 tonnes this year from 452,473 tonnes in 2010 largely due to a reduced area under cultivation and poor weather, the Chamber of Agriculture said on Wednesday.
Sugar, a centuries-old pillar of the Indian Ocean island's now almost $10 billion economy, accounts for roughly 3 percent of gross domestic product and is a major employer.

Sugar shortage to ease in Q4 with more EU supply
LONDON, June 8 (Reuters) - Acute refined sugar shortages are likely to ease in the fourth quarter of this year when fresh EU supplies are expected to enter the world market.
Liffe white sugar futures  have surged due to a cocktail of factors including high seasonal demand before Ramadan in August, port loading delays in Brazil, insufficient demand by refiners for raw sugar earlier this year and fears over tight EU supplies due to dry weather.

Indian mills to seek nod for more sugar exports
NEW DELHI, June 8 (Reuters) - India's sugar mills will soon seek government permission to export an additional half a million tonnes of the sweetner as output is expected to rise in the next season from October, the chief of a leading industry body said on Wednesday.
"Now, it makes sense to export another 500,000 tonnes this season," Abinash Verma, director general of the Indian Sugar Mills Association (ISMA), a producers' body, told Reuters in an interview.

Oil Near Highest This Month Heads for Weekly Gain on U.S. Economy, OPEC (Source: Bloomberg)
Oil traded near the highest this month in New York, heading for a weekly increase, after the U.S. trade deficit unexpectedly narrowed and OPEC failed to reach an accord on output targets. Futures were little changed, with the biggest weekly gain in four weeks, after the Commerce Department said the trade gap shrank 6.7 percent to $43.7 billion, the lowest since December. A separate report showed jobless claims unexpectedly rose. The Organization of Petroleum Exporting Countries on June 8 failed to agree quotas for the first time in at least 20 years.

Rising mining costs may trigger sector correction
LONDON, June 8 (Reuters) - Consensus forecasts for miners' earnings are failing to price in the full impact of rising costs, a gap that could trigger a correction in the sector's shares after the summer results season.
Rises in both capital and operating costs have become a growing problem for the booming industry, which faces ever higher price tags for everything from skilled labour to power, maintenance and even explosives and prefabricated buildings.

Gold Futures Rise as Higher Energy Costs Boost Demand for Inflation Hedge (Source: Bloomberg)
Gold rose for the first time in three days on speculation that higher energy costs will boost demand for the precious metal as a hedge against inflation. Palladium futures jumped to a three-month high. Crude oil topped $102 a barrel in New York after the Organization of Petroleum Exporting Countries failed to reach an agreement on production targets. Federal Reserve Chairman Ben S. Bernanke signaled this week that there won’t be a third round of so-called quantitative easing and U.S. interest rates will remain low.

METALS-Copper slips, China helps shore up sentiment
LONDON, June 9 (Reuters) - Copper was softer on Thursday as traders fretted about further signs of U.S. economic weakness, but prices were buttressed by expectations of higher demand from top consumer China.
Benchmark copper  on the London Metal Exchange was trading at $8,960 a tonne at 1010 GMT from $9,045 a tonne at the close on Wednesday.
The metal used widely in power and construction slid to near $8,500 a tonne last month on fears of dwindling consumption.

PRECIOUS-Gold steady; palladium firms on auto recovery
SINGAPORE, June 9 (Reuters) - Spot gold held steady 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 dollar index edged lower, as the euro was underpinned by expectations that the European Central Bank will likely flag a July rate hike at a meeting later in the day.

Copper Falls to One-Week Low as Rising Global Interest Rates May Curb Use (Source: Bloomberg)
Copper fell to a one-week low on speculation that demand will wane as central banks worldwide raise borrowing costs to curb inflation. European Central Bank President Jean-Claude Trichet signaled an interest-rate increase next month, saying “strong vigilance” is warranted to contain consumer prices. Last month, nations from Norway to India boosted borrowing costs. Inflation risks in the U.S. are “clearly to the upside,” Philadelphia Federal Reserve Bank President Charles Plosser said today.

Chile copper mine protest drags on, no end in sight
SANTIAGO, June 8 (Reuters) - A strike by contract workers that has halved output at the world's No. 5 copper mine, El Teniente in Chile, entered its 15th day on Wednesday with no end in sight as wage talks stalled, protest leaders said.
Mine owner Codelco slowed output at the world's top underground copper operation over the weekend after protests by contractors turned violent and forced staff workers to stay home.

Baosteel cuts July steel product prices by 100-200 yuan/tonne
BEIJING, June 9 (Reuters) - Leading Chinese steelmaker Baoshan Iron and Steel  will cut prices for July delivery of its major products by 100-200 yuan ($15-30) per tonne, it said on Thursday.
It said in an announcement on its website that prices of hot-rolled products would be cut by 200 yuan compared with June, while cold-rolled steel prices would fall by 100 yuan

Africa may turn major iron ore exporter after 2020
CAPE TOWN, June 8 (Reuters) - Africa, regarded as the next iron ore frontier, is only likely to boost global supply from 2020 and only if countries overcome infrastructure and political hurdles, analysts and producers said this week.
The market for iron ore, used in stainless steel production, is the second biggest commodity trading market in the world, valued at some $150 billion, said Phillip Killicoat, iron ore manager at Credit Suisse commodities.

20110610 0949 Soy Oil & Palm Oil Related News.

Soy Oil chart reading : side way range bound little upside biased.

MPOB Official Data for the month of May 2011 vs Apr 2011
Export up 4.3% at 1.4 million tonnes.
Stock up 14.8% at 1.92 milion tonnes.
Output up 13.7% at 1.74 million tonnes.

ITS CPO export up 22% to 395,041 tonnes for the period of 1~10 Jun 2011.
SGS CPO export up 27.2% to 411,852 tonnes for the period of 1~10 Jun 2011.

Soybeans (Source: CME)
US soybean futures ended lower, driven by government data showing less threatening year-end supplies. Larger projected inventories reported by U.S. Department of Agriculture generated price pressure, with increased South American production and lower export forecasts painting a bearish supply picture. The report encouraged traders to trim premium from the market, after rallying prices on thoughts of lower supplies, said Mike Zuzolo, president Global Commodity Analytics and Consulting in Lafayette, Ind.

Soybean Meal/Oil (Source: CME)
Soy product futures ended mixed. Soymeal managed to withstand weakness from soybeans on lingering concerns about tighter meal supplies in the western Midwest on the potential for supply disruptions from Missouri River flooding, analysts said. Soyoil drifted lower, succumbing to pressure from increased supply forecasts from USDA. CBOT July soymeal ended up 0.03% at $372.90/short ton, and July soyoil settled down 0.9% at 57.40 cents/pound.

Palm oil gains ahead of USDA; crude supports
JAKARTA, June 9 (Reuters) - Malaysian palm oil climbed more than 1 percent on Thursday as investors positioned themselves ahead of the release of a U.S. government agriculture report later, with additional support from strong crude prices.
"We've been down a couple of days but there is a strong showing in crude," said one trader. "People are taking this as an opportunity to cover positions because it offers protection against the USDA tonight.

Missouri River floods stricken agribusiness in Midwest
CHICAGO, June 8 (Reuters) - From stranded shipments of soymeal feed to the potential for vast swaths of crop land to be flooded, high water on the Missouri River is disrupting trade and could cost millions of dollars in lost revenue for agribusinesses in the U.S. Midwest, industry sources said.
The situation is unfolding on the heels of massive flooding by the Mississippi River last month that submerged large areas of crops in the South at a time of tight grain supplies.

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.