Wednesday, June 15, 2011

20110615 1834 FCPO EOD Daily Chart Study.

FCPO closed : 3268, changed : +15 points, volume : lower.
Bollinger band reading : pullback correction little downside biased.
MACD Histrogram : turned upward, seller reducing exposure.
Support : 3250, 3200, 3150, 3100 level.
Resistance : 3270, 3300, 3350, 3420 level.
Comment :
FCPO market closed recorded small gain with decreasing volume participation while overnight soy oil closed slightly higher and currently trading firmer.
Market traded higher after both ITS and SGS cargo surveyor reported higher export data for the period of 1~15 Jun. However rising stock concern limiting today's gain.
Daily chart formed a small up doji bar candle closed above lower Bollinger band level after market opened slightly higher, tested lower below support level and move upwards surging above resistance level before easing down to closed off the high of the day.
Market still likely to trade correction range bound little downside biased testing support and resistance level based on technical chart reading.
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.

20110615 1738 FKLI EOD Daily Chart Study.

FKLI closed : 1550.5 changed : +5.5 points, volume : higher.
Bollinger band reading : correction range bound little upside biased.
MACD Histrogram : turned upward, buyer seller battling.
Support : 1550, 1540, 1530, 1515 level.
Resistance : 1565, 1580, 1590, 1600 level.
Comment :
FKLI closed recorded gain with lower volume transacted doing 5.5 points discount compare to cash market that closed higher and Asia closed mixed, Europe currently trading lower while overnight U.S. market closed higher.
Locally, sentiment turned positive today after government seek to rise spending, MITI expected Malaysia 2011 exports to rise 9.5%. However, key index like Hang Seng and Shanghai closed lower soften FKLI upward movement.
Daily chart formed an up doji bar candle closed above middle Bollinger band level after market opened higher, moved lower and rise upward higher before ease down slightly but managed to closed above 1550 resistance now turned support level.
Chart reading remained suggesting a correction 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.

20110615 1610 Global Market & Commodities Related News.

Euro again under pressure in Asia; shares slip
SINGAPORE, June 15 (Reuters) - The euro came under fresh pressure in Asia on Wednesday as worry about euro zone debt intensified after EU ministers failed to seal a deal on Greece, prompting a move away from riskier assets which helped gold extend gains.
"The problem is not the fact that Greece is likely to face some form of a default. The problem is that the debate over the involvement of private investors in the rescue scheme drags on, making market participants jittery," said Teppei Ino, a currency analyst at Bank of Tokyo-Mitsubishi UFJ.

U.S. corn firm after selloff, Senate vote supports
SINGAPORE, June 15 (Reuters) - Chicago corn rose on Wednesday, ending a two-day losing streak as a proposal to end subsidies for the U.S. ethanol industry failed in the Senate, supporting prices amid tight old-crop supplies.
"Our position on corn is bullish, the reason being that the U.S. balance sheet remains relatively tight," said Abah Ofon, agricultural commodities analyst with Standard Chartered Bank in Singapore.

Australia says on track for record wheat exports
SYDNEY, June 15 (Reuters) - Australia wheat exports could jump nearly 9 percent to a record high in 2011-12, with favourable weather helping the winter crop in what is usually the world's fourth-biggest exporter, the government's chief commodities forecaster said on Wednesday.
Exports for the marketing year to Sept. 30, 2012 were estimated at 20.11 million tonnes, up from a forecast 18.470 million tonnes in 2010-11, according to the Australian Bureau of Agricultural and Resources Economics and Sciences (ABARES).

Wet conditions to hit W Canada wheat crop-CWB
WINNIPEG, Manitoba, June 14 (Reuters) - Canada's western crop belt will produce less wheat, but more durum and barley this year, as excessive moisture drowns fields in Manitoba and Saskatchewan, the Canadian Wheat Board said on Tuesday in its first forecast of the year for the region.
Flooding has hit the world's biggest spring wheat and durum exporter for the second straight year, shrinking spring wheat acres to their second-lowest level since 1971.

Brazil says to grow quarter more soy, corn by 2021
BRASILIA, June 14 (Reuters) - Brazilian production of soy and corn is forecast to rise by around a quarter in a decade, the government of the agricultural giant said in a long-term forecast issued by on Tuesday.
The econometric forecast, updated annually, is based on historic increases and consultations with individual farming sectors in the world's top producer of coffee, sugar, orange juice and beef.

Rains improve outlook for western Europe wheat
LONDON, June 14 (Reuters) - Rains have boosted the outlook for wheat crops in parts of western Europe, helping to revive parched plants in Germany and Britain.
In France, the European Union's top wheat producer, the benefits were, however, less clearcut.

Saudi to import 2 mln tonnes wheat in 2011 - official
RIYADH, June 14 (Reuters) - Saudi Arabia expects about 2 million tonnes of wheat imports this year unchanged from 2010, and aims to double its reserves to one year's consumption by 2014, the kingdom's Minister of Agriculture said on Tuesday.
The world's top oil exporter, which has emerged as a major buyer of wheat, wants to build up reserves of basic commodities such as wheat, rice, oils and sugar to protect itself against the impact of a spike in global food prices and to support its rapidly growing population.

U.S. may need to import more sugar by fall of 2011
NEW YORK, June 14 (Reuters) - The United States may need to import 100,000 tonnes of sugar by the end of this summer due to possible delays in harvesting the beet crop and uncertainty overhanging supplies from neighboring Mexico.
Brian O'Malley, president and chief executive of Domino Sugar, told Reuters in an interview on Tuesday the United States is at risk of being forced to buy sugar in the world market. The last time the country had to import sugar outside of its regular import program was in 2008.

Oil dips on stronger dollar, higher U.S. gasoline stocks
SINGAPORE, June 15 (Reuters) - Oil fell on Wednesday as the dollar strengthened after euro zone ministers failed to reach agreement on a second bailout for Greece, while rising gasoline stockpiles in top consumer the United States signalled fuel demand is stalling.
"We know that gasoline demand is still slow despite falling prices, so we don't see a very positive side for growth," said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd.

US gasoline demand rises for second week
NEW YORK, June 14 (Reuters) - U.S. retail gasoline demand climbed slightly last week from a year earlier, a second consecutive rise as pump prices continue to ease, a report by MasterCard Advisors' SpendingPulse showed on Tuesday.
Average weekly gasoline demand rose 0.2 percent in the week to June 10 compared with the same week a year ago, the report showed. Demand rose 1.1 percent from the previous week.

LME copper down on stronger dollar and arbitrage trading
SHANGHAI, June 15 (Reuters) - London copper fell on Tuesday, hit by a stronger dollar and arbitrage trade, but held on to most of the previous session's gains of nearly 3 percent, driven by data from China and the United States.        
"It's normal for LME copper to fall slightly. There's a bit of arbitrage trading this morning where investors buy copper on Shanghai and sell on London now," said a Shanghai-based trader.

Gold extends gains as econ worries linger
SINGAPORE, June 15 (Reuters) - Gold rose further on Wednesday on inflation fears ignited by recent strong Chinese economic data, lingering worries over debt problems in Europe and the United States as well as a softer U.S. dollar.
"There's not much to say. On the upside, there is still a resistance to break at around $1,550. The market may test $1,500 again if it closes below $1,512," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

Japan iron ore demand to rebound in Q4-Vale
GENEVA, June 14 (Reuters) - Iron ore demand in Japan is expected to reach 90 percent of pre-financial crisis levels in the fourth quarter, and all markets are recovering well, an executive at Brazilian miner Vale  said.
Demand in Europe is back at around 85 percent of pre-crisis levels, global marketing director Pedro Gutemberg told Reuters in an interview on the sidelines of a conference in Geneva.

20110615 1113 Global Market & Commodities Related News.

GLOBAL MARKETS: Asian shares up after China, U.S. data; euro firms
SINGAPORE, June 15 (Reuters) - Asian stocks opened higher on Wednesday after a torrid start to the week, as positive data from the world's two largest economies encouraged investors to buy back into growth-sensitive assets.
Chinese data showed the world's second biggest economy may avoid a hard landing as some had feared, while a U.S. consumer spending report that was not as weak as expected lifted U.S. stocks [.N], oil and other growth-oriented markets on Tuesday.

OIL: Oil rises on lift from U.S., China data
NEW YORK, June 14 (Reuters) - Brent reached its highest in more than five weeks on Tuesday and U.S. crude rose more than 2 percent as data from China and the United States eased concerns about the global economy and the threat to oil demand.
"There's a feeling that U.S. economic data will start to get better next month, and if you look at the retail sales data, if you take (out) autos, which were hit by the earthquake in Japan, they were actually up 0.3 percent," said Amrita Sen, oil analyst at Barclays Capital.

NATURAL GAS: Natural gas ends down for second day, weather weighs
NEW YORK, June 14 (Reuters) - Front-month U.S. natural gas futures ended lower on Tuesday for a second straight day, as  milder Northeast and Midwest weather this week and increased nuclear generation continued to weigh on prices despite the warmer outlook for early next week.
"There's been a pause in the heat in the Northeast (and Midwest) which is pressuring prices, but there's still heat around, and storage is not nearly as bearish as last year. It could be a buy here," a Texas-based trader said.

EURO COAL: Prices dip 75c-$1.00 on poor demand
LONDON, June 14 (Reuters) - Coal prices softened by around 75 U.S. cents to $1.00 a tonne for prompt months due to a lack of demand in Europe and Asia, traders and utilities said.
"There's more prompt coal available with no takers - particularly from Richards Bay, so it's got to move lower," one European trader said.

20110615 1007 Global Economic Related News.

Malaysia: Government seeks extra operating expenditure. The Government tabled a bill seeking a supplementary allocation of RM13b for operating expenditure, raising the spending budget for this year by 8% to RM176b. RM6b will be allocated to the Finance Ministry which includes RM5.6b subsidy for petroluem products. RM1.5b will be for Education Ministry and RM1b to Health Ministry. (Source: The Star)

Malaysia: Exports to hit RM700b in 2011, FDI to at least match RM29b recorded in 2010. Exports is expected to rise 9.5% to RM700b in 2011 from RM639.4b recorded last year, while FDI into Malaysia could at least matched if not surpassed last year's figure of RM29b, according to MITI. (Source: The Star)

Malaysia: Government expands the ban on subsidised RON95 sales to now include foreign-registered vehicles (except motorcycles) driven by Malaysians effective immediately. Previously, Malaysians driving foreign-registered vehicles need to show their MyKads. The ban also includes sales of subsidised NGV. (Source: The Star)

Malaysia: Minimum wage by year-end?Minimum wage policy could be implemented by year-end, according to PM. The National Wage Consultation Council Bill 2011 will be presented to Cabinet by the Human Resource Ministry before its tabling in the current Parliament's session. (Source: NST)

China: Raises bank reserve requirements as inflation quickens
China ordered lenders to set aside more cash as reserves after inflation accelerated to the fastest pace in almost three years in May and industrial production rose more than estimates. A half percentage point increase announced by the central bank and effective 20 June will take the ratio to a record 21.5% for the biggest lenders. The move was hours after data showing the inflation rate climbed to 5.5%. Signs the world’s second-biggest economy is maintaining momentum after increases in borrowing costs and curbs on real estate may have encouraged policy makers to add to tightening measures. At the same time, weakness in the global economy and data yesterday showing slower bank lending and money-supply growth may make a decision on further raising interest rates a tougher call. (Bloomberg)

China: Power generation rises 12% YoY in May as factory output expands. Output for the first five months gained 13% YoY to 1.8 trillion kilowatt-hours. (Source: Bloomberg)

India: Inflation accelerated in May, adding pressure on the central bank to extend the fastest round of interest-rate increases among Asia's major economies. The wholesale-price index rose 9.06% YoY after an 8.66% YoY jump in April. (Source: Bloomberg)

S. Korea: Unemployment rate in May declines to a 6-month low as the economic expansion spurred hiring at manufacturers, healthcare and welfare service sectors. The jobless rate dropped to 3.3% in May from 3.6% in April. (Source: Bloomberg) 

U.K: Inflation held at the fastest pace since October 2008 last month as Bank of England policy maker Martin Weale repeated his call for higher interest rates. Consumer prices rose 4.5% YoY in May, matching the increase recorded in April. Core inflation eased to 3.3% YoY from 3.7% YoY. (Source: Bloomberg)

Spain: Underlying inflation rate remained at a two-year high in May as rising commodity prices more than offset weak consumer demand. Core inflation, which excludes energy and fresh food, gained 2.1% YoY, matching April's two-year high. Headline inflation, based on European Union calculations, was 3.4% YoY, the same as an initial estimate on May 30. (Source: Bloomberg)

EU: Greek rescue may be delayed by EU divisions on investors’ role
Euro-area finance chiefs struggling to break a deadlock on how to enroll investors in a second Greek rescue without triggering a default said they may need more time to reach a deal. An emergency session of finance ministers in Brussels failed to reconcile a German-led push for bondholders to shoulder part of the cost of a new Greek aid package with European Central Bank warnings backed by France that the move might constitute the euro area’s first sovereign default. With consensus elusive before the target date of a leaders’ summit late next week, finance ministers agreed to convene again on 19 June, a day earlier than planned. Talks may drag on into July, Luxembourg’s Finance Minister Luc Frieden said. (Bloomberg)

US: Wholesale prices rise 0.2%, led by fuel, apparel, textiles
Wholesale costs in the US rose more than forecast in May, led by higher prices for fuel and the fastest rise in 30 years for apparel and textiles. The 0.2% increase in the producer-price index compares with the 0.1% median estimate of economists surveyed by Bloomberg News, Labor Department figures showed today in Washington. The so-called core measure, which excludes volatile food and energy costs, increased 0.2%, matching projections. The costs of apparel and other fabricated textile products rose 1.0% in May, the fastest since 1.3% in April 1981. Higher input prices mean companies like Under Armour Inc. are passing on increased costs to consumers, whose incomes may be strained by unemployment above 9%. At the same time, Federal Reserve Chairman Ben Bernanke has reiterated that he expects commodity costs to ease in the coming months. (Bloomberg)

US stocks advance on retail sales, China industrial production
US stocks rallied and the Standard & Poor’s 500 Index advanced the most in almost two months after better-than-estimated data on American retail sales and Chinese industrial production. Home Depot Inc. advanced the most in the Dow Jones Industrial Average, gaining 4.5%. Best Buy Co., the world’s largest consumer electronics retailer, surged 4.6% after profit exceeded analysts’ forecasts on rising demand for smartphones. J.C. Penney Co. soared 17 after naming Ron Johnson, Apple Inc.’s retail head, as its CEO. Energy shares rallied the most among 10 groups in the S&P 500 as oil rebounded from its lowest in a month. The S&P 500 rose 1.3%, the most since 20 April, to 1,287.87 at 4 pm in New York. The Dow increased 123.14 points, to 12,076.11. (Bloomberg)

U.S: Retail sales in May fell less than forecast, showing consumers were weathering elevated gasoline costs. The 0.2% MoM decrease reported by the Commerce Department in Washington compared with the median forecast for a 0.5% MoM drop in a Bloomberg News survey of economists. Excluding the biggest slide in auto sales in more than a year, purchases climbed 0.3% YoY. (Source: Bloomberg)

20110615 1004 Malaysia Corporate Related News.

KLCI chart reading :
correction range bound upside biased.

TNB unit wins job in Pakistan
Tenaga Nasional Bhd’s (TNB) unit TNB Repair and Maintenance Sdn Bhd (TNB Remaco) has secured an operation and maintenance agreement worth USD14.1m (RM43m) from Pakistan’s Laraib Energy Ltd. TNB Remaco will be the operator of the 84MW New Bong Escape Hydroelectric Power Complex on the Jhelum River in Azad Jammu and Kashmir. (StarBiz)

Auto industry recovering fast
The launch of the new Perodua Myvi tomorrow marks another milestone for national carmaker Perodua. More importantly for Malaysia’s automotive sector, it is a sign that things are returning back to normal after supply disruptions caused by Japan’s devastating 11 March earthquake and tsunami, Indeed, the automotive industry is expected, with local automakers seeing their productions returning to pre-disaster levels. Local automakers UMW Toyota SB and Perodua were among the carmakers that were affected, but have since seen their production resume to normal levels as supply from Japan improved. (Financial Daily)

KUB sees “billion ringgit” in Shell bid
KUB Malaysia’s revenue could potentially breach the billion ringgit mark in the coming financial year if plans to acquire Royal Dutch Shell plc (Shell) liquefied petroleum gas (LPG) business in Peninsular Malaysia follows through, enabling the group to further solidify its financial position. Group MD Datuk Mohd Nazar said if the deal materialized, it could substantially increase its market share in the local LPG market to 32% from the current 12%, making KUB the second-largest distributor in the market. (Malaysian Reserve)

Capital Malls adds East Coast Mall to its REIT portfolio
Capitallmalls Malaysia REIT Management SB (CMRM), the manager of CapitalMalls Malaysia Trust (CMMT), is acquiring East Coast Mall (ECM) in Kuantan, Pahang for RM310m, adding it to its real estate investment trust (REIT) portfolio. Including acquisition fee and expenses, CMRM is expected to dish out an acquisition cost of about RM330m, the equivalent of ECM’s independently–valued figure. (Malaysian Reserve)

MBM to conclude talks in 12 months
MBM Recourses which has allocated RM250m for capex, expects to conclude talks with an international firm in the next 12 months to set up an assembly plant locally, Its MD Looi Kok Loon said MBM was actively seeking partners in vehicle assembly plant locally. The company is targeting to increase the number of brands from 9 currently by inviting foreign carmakers to venture into the domestic automotive industry and set up a regional base for their expansion in the region, he said. (Financial Daily)

Pos Malaysia to consolidate operations in 3 years
Pos Malaysia will consolidate its nationwide operations in 3 years by reducing mail processing centres from 29 to 7 or 9. Group MD Datuk Syed Faisal said the 7 or 9 processing centres would include one each in Sabah and Sarawak. This would require Pos Malaysia to use more machines to enhance mail handling efficiency, he told reporters at the company’s RM256m national mail centre in Seksyen 21 here which started operation at the end of 2010. (Financial Daily)

PetDag: Plans 50 new stations. Petronas Dagangan Bhd will invest up to RM400m to set up between 30 and 50 petrol stations, annually, over the next five years. (Source: The Star)

MRCB: Poised to clinch RM800m LRT contract. Malaysian Resources Corp Bhd (MRCB) is poised to secure soon a contract worth as much as RM800m from Syarikat Prasarana Negara Bhd. The contract is for civil works for phase two of the Ampang light rail transit (LRT) extension line linking Putra Heights to Shah Alam, Selangor. (Source: Business Times)

Plantation: MSM prices IPO shares at RM3.50 each. MSM Malaysia Holdings Bhd has priced its initial public offering (IPO) at RM3.50 per share for institutional investors. (Source: The Star)

20110615 1001 Global Market Related News.

 DJIA chart reading : pullback correction downside biased.

Hang Seng chart reading : pullback correction downside biased.

Asia Stocks Swing Between Gains, Losses After U.S. Retail Sales (Source: Bloomberg)
Asian stocks swung between gains and losses after a report showed U.S. retail sales were better than forecast, boosting the outlook for exporters. QBE Insurance Group Ltd. slumped after issuing a profit forecast.

Debt Limit ‘Wrong Tool’ to Force Cuts: Bernanke (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke said the U.S. debt ceiling shouldn’t be used as a bargaining chip to force budget cuts, and failing to raise it could cause “severe disruptions” in financial markets. Using the debt limit deadline to force some “necessary and difficult fiscal-policy adjustments” is “the wrong tool for that important job,” he said. “We should avoid unnecessary actions or threats that risk shaking the confidence of investors in the ability and willingness of the U.S. government to pay its bills,” Bernanke said today in the text of remarks in Washington.

Retail Sales in U.S. Fall Less Than Estimated; Demand for Autos Declines (Source: Bloomberg)
Sales at U.S. retailers fell less than projected in May, showing consumers were weathering elevated gasoline costs. The 0.2 percent decrease reported by the Commerce Department in Washington today compared with the median forecast for a 0.5 percent drop in a Bloomberg News survey of economists. Excluding the biggest slide in auto sales in more than a year, purchases climbed 0.3 percent. Another report showed wholesale costs rose last month.

Optimism Among U.S. Chief Executives Fell in Second Quarter (Source: Bloomberg)
Optimism among U.S. chief executive officers fell in the second quarter from a record high as fewer business leaders projected sales will climb, a survey showed. The Business Roundtable’s economic outlook index decreased to 109.9 for the April through June period from a 113 reading in the previous three months that was the highest in data going back to 2002, the Washington-based group said today. Figures greater than 50 coincide with an economic expansion.

Treasuries Advance on Speculation Second Bailout for Greece to Be Delayed (Source: Bloomberg)
Treasuries advanced for the first time in three days on concern a European rescue plan for debt- saddled Greece will take longer to craft, boosting demand for the relative safety of government debt. Luxembourg Finance Minister Luc Frieden said yesterday that an agreement on a second bailout package for Greece may be delayed until July. U.S. bonds have returned 2.5 percent to investors this year, the best performer among government debt issued by the Group-of-Seven countries, according to indexes compiled by Bank of America Merrill Lynch.

China Raises Reserve Ratio After Industrial Production Outpaces Estimates (Source: Bloomberg)
China ordered lenders to set aside more cash as reserves after inflation accelerated to the fastest pace in almost three years in May and industrial production rose more than estimates. A half percentage point increase announced by the central bank today and effective June 20 will take the ratio to a record 21.5 percent for the biggest lenders. The move was hours after data showing the inflation rate climbed to 5.5 percent.

China Inflation Shows Danger of Pause on Rates (Source: Bloomberg)
China’s inflation pressures have yet to be contained by four interest-rate increases since September, underscoring the danger of any extended policy pause as bad weather threatens to further drive up food costs. The central bank yesterday increased banks’ reserve requirements to drain cash from the economy after consumer prices rose 5.5 percent in May, the biggest gain since 2008. Inflation may reach 6 percent this month, according to banks from Societe Generale SA to UBS AG.

China data lifts stocks, Greek crisis bubbles
LONDON, June 14 (Reuters) - Evidence that China may avoid a hard landing for its high-flying economy lifted riskier assets such as stocks  although investors remained on edge about the deepening Greek debt crisis.
Fresh from being downgraded by S&P to just above default, Greece was set to sell six-month treasury bills later in the day in what will be a clear test of investors' view of the country's short-term prospects.

China ups bank reserves again in inflation fight
BEIJING, June 14 (Reuters) - China ordered its banks to lock up more deposits at the central bank for the sixth time this year, making clear that taming near three-year-high inflation remains a priority even as its vast economy eases.
The increase, announced on Tuesday and effective as of June 20, comes just hours after official data showed China's inflation had accelerated to a 34-month high of 5.5 percent in May, well above its 2011 target of 4 percent.
Indian inflation accelerates, Thursday rate hike seen

NEW DELHI, June 14 (Reuters) - Indian inflation accelerated faster than expected in May, with higher manufacturing prices offsetting slower growth in fuel and food costs and adding pressure on the central bank to lift interest rates this week despite signs of economic slowdown.
The wholesale price index , India's main inflation gauge, rose an annual 9.06 percent in May, above the median forecast for an 8.70 percent rise in a Reuters poll and  the April figure of 8.66 percent.

India Wholesale Prices Rise Faster-Than-Estimated 9.06% From Year Earlier (Source: Bloomberg)
India’s inflation exceeded analysts estimates, adding pressure on the central bank to extend the fastest round of interest-rate increases among Asia’s major economies. Bond yields and the rupee gained. The wholesale-price index rose 9.06 percent from a year earlier after an 8.66 percent jump in April, the commerce ministry said in a statement in New Delhi today. The median estimate of 22 economists in a Bloomberg News survey was for an 8.74 percent increase.

S. Korea Unemployment Rate at 6-Month Low (Source: Bloomberg)
South Korea’s unemployment rate fell to a six-month low as the economic expansion spurred hiring at manufacturers, healthcare and welfare service sectors. The jobless rate dropped to 3.3 percent in May from 3.6 percent in April, Statistics Korea said today in Gwacheon, south of Seoul. The median estimate in a Bloomberg News survey of 10 economists was for a rate of 3.7 percent.

Specter of Indonesian Political Interference Looms Over Planned Regulator (Source: Bloomberg)
A tussle between lawmakers and the government over Indonesia’s planned financial regulator has raised the risk of political interference in bank supervision, highlighting the nation’s struggle to eliminate corruption.

Philippines May Increase Interest Rate as Inflation Spurs Asian Tightening (Source: Bloomberg)
The Philippine central bank may raise interest rates for the third time this year after inflation accelerated to a 13-month high, as Asian nations from China to India sustain policy tightening even as growth slows. Bangko Sentral ng Pilipinas will increase the rate it pays lenders for overnight deposits by a quarter of a percentage point to 4.75 percent, according to 10 of 16 economists surveyed by Bloomberg News ahead of a decision tomorrow. The rest expect policy makers to keep the benchmark unchanged at 4.5 percent.

Greek Aid Deal May Be Delayed to July (Source: Bloomberg)
Euro-area finance chiefs struggling to break a deadlock on how to enroll investors in a second Greek rescue without triggering a default said they may need more time to reach a deal. An emergency session of finance ministers in Brussels late yesterday failed to reconcile a German-led push for bondholders to shoulder part of the cost of a new Greek aid package with European Central Bank warnings backed by France that the move might constitute the euro area’s first sovereign default.

Greece falls to S&P's lowest rated, default warned
ATHENS/NEW YORK, June 13 (Reuters) - Greece became the lowest-rated country in the world according to Standard & Poor's, which downgraded it on Monday and warned that any attempt to restructure the country's debt would be considered a default.
Greece now has a lower credit rating than countries such as Pakistan and Ecuador, which has been shut out of international markets since a 2009 default. The cost of insuring Greek debt is now almost twice as much as the price of insuring Pakistani bonds.

Australian Dollar Falls From One-Week High After Yield Advantage Shrinks (Source: Bloomberg)
The Australian dollar slid from near a one-week high against the greenback as a slump in U.S. Treasuries curbed the yield advantage of the smaller nation’s assets.

Chile Raises Rate to 5.25%, Slowing Pace as GDP Growth, Inflation Moderate (Source: Bloomberg)
Chile’s central bank today slowed the pace of interest-rate increases as economic growth eases and inflation expectations decline. The five-member policy board, led by bank President Jose De Gregorio, raised the overnight rate by a quarter-point to 5.25 percent, matching the forecast of 16 of 19 economists surveyed by Bloomberg. Two analysts expected a fourth consecutive half- point increase and one forecast a pause.

FOREX-Euro rises with riskier assets, China move caps
LONDON, June 14 (Reuters) - The euro and high-yielding currencies rose on Tuesday, boosted by improved risk appetite after Chinese inflation data eased global growth concerns and quickly absorbing a hike in Chinese banks' reserve requirements.
Market players said the single currency looked a sell on rallies, however, owing to Greece's debt crisis and uncertainty over how much the private sector will be involved in a new aid package for Athens.

20110615 0956 Global Commodities Related News.

Corn (Source: CME)
US corn futures finish sharply lower as the market extends its setback from Friday's record high. Forecasts for favorable weather during the next 10 days weigh on prices. Beneficial weather has already given the crop a boost, as the USDA raised its weekly good-to-excellent rating to 69% from 67%. "There's some anticipation that we'll see the crop ratings edge a little higher," says Marty Foreman, analyst at Doane Advisory Services. Commodity funds sold an estimated 20,000 contracts, a large amount. CBOT July corn drops 27c to $7.55 1/2 a bushel.

Wheat (Source: CME)
US wheat futures close lower as the US harvest picks up speed, increasing the amount of grain on hand. Dry conditions in the Plains keep the door open for farmers to cut crops. "The perfect harvest conditions that we've got right now will probably prevail for at least a week," predicts Drew Lerner, president of World Weather. Europe's wheat crop, meanwhile, has benefited from rains in dry areas of France and Germany. CBOT July wheat loses 11 3/4c to $7.31 1/4 a bushel, KCBT July sheds 11 1/4c to $8.39 3/4 and MGE July slides 16 3/4c to $9.68 1/2.

Rice (Source: CME)
US rice futures finish lower as selling overwhelms the grain markets. Rice falls with wheat, corn and soybeans on forecasts for improving crop weather. Losses in wheat drag down rice as both crops are global food staples. Meanwhile, development of the US rice crop is moving along, with 93% emerged as of Sunday, just two percentage points behind the five-year average for that time of year. CBOT July rice drops 27 1/2c to $14.33 1/2 per hundredweight.

U.S. corn falls for 2nd day, wheat mkt eyes Egypt tender
SINGAPORE, June 14 (Reuters) - Chicago corn futures lost more ground , falling 0.8 percent as improved U.S. weather and crop conditions weighed on the market, pulling it further below last week's record high prices.
"We may expect some pressure from the fact that plantings are winding up and the weather is improving, so it's going to be little bit bearish in the short term," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne. 

Argentina approves 3 mln T new crop wheat exports
BUENOS AIRES, June 13 (Reuters) - Argentina approved on Monday the export of 3 million tonnes of 2011/12 wheat for shipment starting in December, a senior agriculture official told Reuters.
Argentina, a leading global wheat exporter and a key supplier to neighboring Brazil, only authorizes exports of wheat and corn when farmers have declared enough stocks to guarantee plentiful domestic supplies.

U.S. corn, soy ratings top analyst forecasts
CHICAGO, June 13 (Reuters) - Condition ratings for U.S. corn and soybeans topped analysts expectations on Monday as the late planted crop thrived amid the warm-up in temperatures across the Midwest.
The U.S. Agriculture Department's weekly crop progress report showed the corn crop rated 69 percent good to excellent as of June 12, up 2 percentage points from a week earlier. Analysts, on average, had expected good-to-excellent ratings of 68 percent.

US corn condition improving as planting ends
CHICAGO, June 13 (Reuters) - Rising temperatures boosted the health of late-planted corn in the United States, but the crop was still in below-average shape, analysts said.
The U.S. Agriculture Department's weekly crop progress report on Monday afternoon is expected to show that the corn crop was rated 68 percent good to excellent, based on the average of estimates given by eight analysts. A week ago, the crop was rated 67 pct good to excellent.

U.S. corn crop seen 68 percent good/excellent
CHICAGO, June 13 (Reuters) - Rising temperatures boosted the health of late-planted corn in the United States, but the crop was still in below-average shape, analysts said.
The U.S. Agriculture Department's weekly crop progress report on Monday afternoon is expected to show that the corn crop was rated 68 percent good to excellent, based on the average of estimates given by eight analysts.

Wetness to push Manitoba unplanted acres to record
WINNIPEG, Manitoba, June 13 (Reuters) - Unplanted crop acres in the western Canadian province of Manitoba will likely reach a record high this year due to excessive wetness, a provincial government official told Reuters on Monday.
The province is working to calculate an estimate, and it appears Manitoba will exceed the record of nearly 1.4 million unplanted acres set in 2005, said David Koroscil, manager of insurance projects and sales for the Manitoba Agricultural Services Corp.

India Minister Favors Exports Of Farm Commodities (Source: CME)
India's farm minister, Sharad Pawar, said he strongly favors exports of sugar, wheat, rice and cotton as the country has surplus stocks and is likely heading to another year of a bumper output. "I honestly feel, in the larger interest of the country's farming community, there should be an open policy for export and import of agriculture commodities," Pawar said in an interview. India's foodgrain stocks are at an all-time high of 65.47 million metric tons, about two-and-a-half times more than the annual requirement for state welfare programs. Still, the government is cautious on exports due to fear of worsening already high inflation and its plan to enact a law that seeks to expand the supply of subsidized grains. The country is also facing a shortage of storage facilities, with its warehouses already full. Production of farm commodities like sugar, wheat and cotton is expected to exceed local requirements, weakening their local prices as only limited or no exports are allowed.
Pawar said the time is right to immediately allow exports of 1.0 million-1.5 million tons of sugar as global prices have surged due to concerns over the crop in Brazil, the largest producer of the sweetener. London's benchmark August white sugar contract has risen 20% in one month to around $720 a ton on concerns over the size of Brazil's crop due to aging plants and dry weather, and a surge in demand ahead of the Ramadan holiday. At the same time, the price in India has fallen 6.3% to INR25,300 per ton ($564). In April, the government allowed exports of 500,000 tons of sugar. Mills have already almost exhausted the quota and want clearance to ship another 1.5 million tons in the marketing year through September. Top sugar industry executives are meeting in Mumbai to discuss the demand for more exports, particularly as monsoon rains are posing a threat to stocks stored in the open. "My ministry is going to strongly support [more sugar exports]," Pawar said.
The minister said sugarcane acreage and output in the next marketing year are expected to rise at least 10% as higher local prices earlier in the year have tempted farmers to increase plantings. India, the second-biggest sugar producer, is forecast to produce 24.5 million tons of sugar this year, exceeding its annual requirement of 22.0 million-22.5 million tons. On cotton, Pawar said the acreage is expected to jump 40% next year starting July 1, and so the government can consider more exports. Also, genetically modified verities are now increasingly used, he said. "Therefore, productivity will be higher."

Corn, Soybean Futures Decline as Favorable Weather May Boost U.S. Crops (Source: Bloomberg)
Corn fell to a one-month low and soybeans declined on bets that favorable weather will boost yields in the U.S., the world’s biggest grower and exporter. About 69 percent of the corn crop was in good or excellent condition on June 12, up from 67 percent a week earlier, the U.S. Department of Agriculture said yesterday. An estimated 87 percent of soybeans were planted, compared with the average of 89 percent in the previous five years.

Rising Commodity Prices Threaten Global Growth -Sarkozy (Source: CME)
French President Nicolas Sarkozy called for increased transparency in physical commodities markets and for tighter regulation of commodity derivatives as he described rising oil and food prices as the main threat to global growth. Key measures proposed by Sarkozy to curb commodity price volatility include minimum cash deposits for derivative trades as well as the creation of trade repositories that would be able to keep track of these trades. The Group of 20 industrial and emerging nations should also rise to the challenge of increasing its food and oil production in the face of rapidly growing demand, Sarkozy said. It should also beef up transparency on stock information so as to help prevent future food crises, he added. "Global growth has rebounded but rising commodity prices are the main threat to growth," Sarkozy told a conference on commodities in Brussels organized by the European Commission.
Soaring commodity prices are sparking higher inflation in fast-growing emerging economies and risk feeding global imbalances which the G-20 has vowed to eradicate, Sarkozy warned. Improving the oversight of cash and derivative commodities markets in order to curb price volatility, which risks derailing global growth, is one of the priorities of France as it chairs the G-20 this year. Speaking at the same conference, European Commission president Jose Manuel Barroso said the G-20 is the appropriate forum to deal with the "vital" issues of commodity price volatility and food security. Even as he acknowledged that there is no proven link between financial speculation on commodities and actual oil and food price levels, Sarkozy said it is "unacceptable" that the increasing role played by financial markets in trading commodities should fuel commodity price volatility.
"The point is not to regulate prices, but to make sure that the price-formation process works properly," Sarkozy said, stressing the size of oil derivatives markets is 35 times that of physical oil markets. Sarkozy called on all G-20 nations to adopt common rules for the oversight of commodity derivatives trading, such as the creation of "central registries" that would collate all the information on trades, and he stressed the need for commodity derivatives to be increasingly standardized and to be traded and cleared through regulated platforms. Sarkozy also called for commodity derivatives transactions to be carried out with reduced leverage, by imposing a minimum cash deposit for each transaction, similar to margin calls used on other financial markets. Sarkozy urged regulators to better scrutinize the interconnections between physical and derivatives commodities markets, so as to avoid price manipulation and market abuse.
"Is it normal for one single player to be able to buy almost all the derivatives contracts available on cocoa on one marketplace by acting both on physical and on derivatives markets and in doing so to control 7% of the world production, 15% of world stocks and 25% of European ones?" Sarkozy asked.

Coffee steady, Brazil harvest weighs
LONDON, June 14 (Reuters) - ICE coffee was steady in early trade  with upside limited by Brazil's harvest, while white sugar dipped from this week's multi-week highs triggered by strong pre-Ramadan demand and Brazilian and Thai port delays. ICE arabica coffee futures were little changed, with upside potential limited by Brazil's harvest, and were buoyed by a shortage of quality beans and the looming frost season in Brazil although dealers' fears over frost appeared to recede.

Brazil CS sugar output picks up in late May-Unica
SAO PAULO, June 13 (Reuters) - Helped by dry weather, sugar output in Brazil's center-south finally picked up in the second half of May after a troubled wet start to the season, data from the cane industry association Unica showed on Monday.
Sugar production in the two-week period totaled 2.37 million tonnes, up 6.8 percent from a year ago, with cane crushing reaching 42.7 million tonnes, an increase of 5.5 percent from the same period in 2010.

Global coffee output seen slightly down in 2011/12
LONDON, June 13 (Reuters) - Global coffee output in 2011/12 is expected to fall slightly to around 130 million (60 kg) bags, down from 133 million in 2010/11, the International Coffee Organization forecast on Monday.
"Production prospects for crop year 2011/12 are somewhat mixed since lower production is anticipated in Brazil, while production in other exporting countries may increase," the ICO said in a monthly market report.

Brazil harvests coffee in dry weather after rain
BRASILIA, June 13 (Reuters) - The weather was set to turn dry again this week in Brazil's coffee areas after showers last week, forecaster Somar predicted Monday.
That will help producers dry beans to prevent them from spoiling.

Uganda's May coffee exports jump 43 pct yr/yr
KAMPALA, June 13 (Reuters) - Uganda's coffee exports beat expectations to jump 42.8 percent to 253,270 60-kg bags in May from a year earlier as the harvesting season reached its peak, an industry source said on Monday.
Uganda is one of Africa's leading exporters of coffee beans and earnings from the crop constitute a major source of foreign exchange inflows. The country primarily cultivates the Robusta variety.

Mexico, Costa Rica coffee output seen up in 11/12
MEXICO CITY, June 13 (Reuters) - Mexico and Costa Rica, two producers of high-quality arabica coffee, are expecting bigger harvests next season as the crop recovers from bad weather, national coffee groups in both countries said on Monday.
Mexico, the world's No. 6 coffee grower, will produce 4 million 60-kg bags in the current 2010/11 cycle, slightly below original forecasts after hard frosts hit some growing areas.

Gajah Tunggal says rubber buying to rise 10 pct in 2011
JAKARTA, June 14 (Reuters) - Rubber buying at Indonesia's Gajah Tunggal  will rise by about 10 percent and could top 80,000 tonnes in 2011, as Southeast Asia's biggest tyre maker sees sales growing up to 30 percent this year to tap booming consumer demand.
The firm bought 70,000 tonnes of rubber last year from Indonesia, the world's second largest rubber producer and where demand for tyres is surging as car and motorbike sales are seen hitting record levels again this year. 

Oil Trades Near Three-Day High on U.S. Retail Sales; Stockpiles Decline (Source: Bloomberg)
Oil traded near a three-day high in New York after reports showed U.S. retail sales fell less than expected and crude supplies slipped a second week, stoking speculation fuel demand may increase. Futures were little changed after climbing the most in almost four weeks yesterday. Purchases dropped 0.2 percent in May, less than the median forecast for a 0.5 percent decline in a Bloomberg News survey of economists, Commerce Department figures showed. The industry-funded American Petroleum Institute said crude stockpiles fell 3.01 million barrels last week.

China May aluminium, alumina, nickel output hits records
HONG KONG, June 14 (Reuters) - China's production of nickel, primary aluminium and its raw material alumina hit records in May on increased capacity  that could see aluminium output rise further in June.
Production of refined copper in the world's top consumer of the metal continued to slow from a record 470,000 tonnes in March as a reduced supply of scrap constrained producers.

Chinese nickel prices seen down, investors may stock up-trade
HONG KONG, June 14 (Reuters) - Chinese spot nickel prices may drop in the next one to two months as stainless steel mills cut demand, but this may allow investors to stock up the metal that generated profit margins of more than 25 percent in the last two years, trade sources said.
Spot nickel prices  dropped on Tuesday to 7-month lows around 171,000 yuan ($26,377) as demand fell from stainless steel producers, who mopped up the bulk of China's annual nickel demand of more than 500,000 tonnes in 2010 and 2011. Weak international prices also pressured Chinese prices. 

China May steel output hits record but daily rate falls
BEIJING, June 14 (Reuters) - China produced a record 60.25 million tonnes of crude steel in May, up 2 percent since April, figures from China's statistics bureau showed on Tuesday.   
But daily output declined to 1.94 million tonnes, down slightly from last month's peak of 1.968 million tonnes, according to Reuters calculations. 

China vows to strike hard against illegal rare earth mining
BEIJING, Jun 13 (Reuters) - China will "strike hard" against the illegal mining, exporting and smuggling of rare earth elements to impose discipline on an increasingly "strategic" sector, the industry minister said on Monday.
In a statement published on the website of the Ministry of Industry and Information Technology,Miao Wei said China's rare earth resources had been put under increasingly heavy pressure as a result of surging domestic and global demand. 

METALS-Copper gains after Chinese data, tightening move
LONDON, June 14 (Reuters) - Copper rose on Tuesday, absorbing another monetary policy tightening move in China, as economic data from the world's top consumer of the metal eased global growth concerns and boosted risk appetite.
Benchmark copper on the London Metal Exchange  was at $9,023 a tonne at 0930 GMT from a close of $8,910 on Monday.

PRECIOUS-Gold rallies on weaker dollar, jewellery demand
LONDON, June 14 (Reuters) - Gold rallied on Tuesday as the jewellery sector came looking for bargains, the dollar slipped and investors fretted about the Greek debt crisis.
Spot gold  was bid at $1,518.64 a troy ounce at 0929 GMT from $1,514.73 an ounce late in New York on Monday when it suffered its biggest one-day loss in a month, touching a three-week low of $1,511.11 an ounce.

Gold Rebounds as Improving Economy May Boost Demand for an Inflation Hedge (Source: Bloomberg)
Gold rebounded from a three-week low on speculation that an improving global economy will spur inflation, boosting demand for the precious metal as a hedge. The MSCI All-Country World Index and the Standard & Poor’s 500 Index gained today after reports showed Chinese industrial output and U.S. retail sales topped economists’ estimates. Before today, gold slumped 2 percent in the past week, dropping yesterday to $1,511.40 an ounce, the lowest since May 23.

‘Tidal Wave’ of Gold Demand Coming From China, India as Economies Expand (Source: Bloomberg)
Gold may extend its decade-long rally as demand surges from emerging markets including China and India, according to the producer-funded World Gold Council. “There’s a tidal wave of gold demand coming,” Jason Toussaint, the WGC’s managing director of U.S. and Investment, said today at the Bloomberg Link Money Managers Conference in Boston. “A key is the long-term fundamental change in emerging markets. The biggest markets of growth are China and India.”

20110615 0954 Soy Oil & Palm Oil Related News.

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

ITS CPO export up 25.9% to 671,314 tonnes for the period of 1~15 Jun 2011.
SGS CPO export up 16.2% to 699,674 tonnes for the period of 1~15 Jun 2011.

Soybeans (Source: CME)
US soybean futures stumble as investors reduced risk exposure and trimmed premium from prices amid improved crop outlooks. Beneficial weather for crop development and farmers planting soybean crops faster than expected last week weighs on prices, analysts say. Spillover weakness from sharp declines in corn futures coupled with the threat of declining demand from China as the Asian nation attempts to cool inflation adds to the defensive tone, analysts say. CBOT July soy ends down 1.1% at $13.68/bushel, and November soy drops 0.9% to $13.63 3/4.

Soybean Meal/Oil (Source: CME)
Soy product futures end mixed, with soymeal sliding to two-week lows in sympathy with a sharp slide in corn futures. Soymeal is sensitive to movement in corn, as both used as feed for the livestock industry, a CBOT floor broker notes. Soyoil futures edge higher, benefiting from traders booking profits on long soymeal/short soyoil spreads, analysts say. CBOT July soymeal finishes down 3.1% at $358.70/short ton, and July soybean end up 0.05% at 56.85 cents/pound.

Palm oil little moved on stocks, demand
KUALA LUMPUR, June 14 (Reuters) - Malaysian palm oil futures made little headway  as the market was split between rising vegetable oil supplies and strong demand expectations.
"The palm oil market is counting on exports. External markets are a little sluggish because the USDA report showed good crop numbers," said a trader with a foreign commodities brokerage in Malaysia.

Cargill to offer sustainable palm oil in N.America
CHICAGO, June 13 (Reuters) - Cargill Inc is offering palm oil that is certified as sustainable to North American food makers, the privately held agribusiness company said on Monday.
Cargill is the largest North American importer of palm oil, an ingredient used in foods such as shortening and ice cream as well as in the production of biofuels.