Thursday, June 16, 2011

20110616 1830 FCPO EOD Daily Chart Study.

FCPO closed : 3193, changed : -77 points, volume : higher.
Bollinger band reading : downside biased.
MACD Histrogram : resume downward, seller still in control.
Support : 3150, 3100, 3070, 3050 level.
Resistance : 3200, 3250, 3270, 3300 level.
Comment :
FCPO market closed substantially lower recorded loss with higher volume transacted while overnight soy oil closed little higher and currently registering severe fall.
Most commodities trading lower after U.S. dollar turned stronger with news on China decided to extend price control on cooking oil prices until 15 Aug to keep price stable and control inflation.
Daily chart formed a wide range down bar candle closed little below lower Bollinger band level after market opened lower, edge up slightly and plunged all the ways triggering long covering activities to closed at the low of the day.
Chart reading suggesting a downside biased market development testing lower support level with possible pullback correction should selling activities get over extended.
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.

20110616 1752 FKLI EOD Daily Chart Study.

FKLI closed : 1547.5 changed : -3 points, volume : lower.
Bollinger band reading : correction range bound little upside biased.
MACD Histrogram : resume lower, buyer seller battling.
Support : 1540, 1530, 1515, 1500 level.
Resistance : 1550, 1565, 1580, 1590 level.
Comment :
FKLI closed recorded loss with lower volume changed hand doing 6.5 points discount compare to cash market that closed marginally lower while Asia and Europe traded severely lower after overnight U.S. market closed substantially lower.
Daily chart formed a small body up doji bar candle closed below middle Bollinger band level after market opened lower, traded range bond within tight 5.5 point range market and closed near opening price level.
For near term, market still likely to trade correction range bound little upside biased 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.

20110616 1546 Global Market & Commodities Related News.

Asia stocks slide on Greece discord, US slowdown
HONG KONG, June 16 (Reuters) - Asian stocks slid to their lowest level in nearly three months on Thursday and the euro wobbled as Greece's debt troubles deepened and fresh U.S. data indicated its economic "soft patch" could drag on longer than expected.
"We have got used to fairly disappointing data from the U.S., so I think today's fall is mostly prompted mostly by euro zone problems," said Takashi Ohba, a senior strategist at Okasan Securities.

U.S. corn steady after slide to 1-mth low, wheat ticks up
SINGAPORE, June 16 (Reuters) - U.S. corn futures were steady on Thursday, after being hammered down nearly 8 percent this week to a 1-month low on improved crop weather in the United States and concern that less grain will be used as a feedstock for ethanol production.
"There is massive fund positioning in July that needs to be unwound or moved forward," said Davis. "It is liquidation of July contracts and positioning in forward contracts,  most of it going to the harvest contract, which is December."

Mexico coffee sector seeks more govt help to hedge
MEXICO CITY, June 15 (Reuters) - Mexico's coffee farmers are clamoring to expand an innovative government program to hedge commodity prices, increasing their participation in a scheme already making waves in other agricultural markets.
The national coffee association Amecafe wants a bigger government budget of up to $12.7 million dollars to subsidize arabica and robusta contracts in New York and London, says a proposal submitted this year now awaiting approval.

Brazil's crimson coffee crop to yield more milds
BRASILIA, June 15 (Reuters) - The lack of rain last year that seemed on track to harm Brazil's coffee crop has proven a blessing in disguise, as the evenly ripe crop that resulted helps raise output of sought-after wet-processed mild beans.
Importers will welcome any increase in mild coffee output after searching hard for it in Brazil in the months prior to the harvest as stocks ran low, while growers also benefit by pocketing a premium for milds of up to 70 reais ($44) a bag.

Morocco will not ease cereal import duties in 2011
RABAT, June 15 (Reuters) - Morocco will not ease import duties on cereals before the end of this year at the earliest, even after about six percent of the harvest was lost to bad weather, the agriculture minister told parliament on Wednesday.
"We will not ease custom (duties) on cereal imports before the end of 2011 at the earliest," Aziz Akhennouch said in response to questions on whether recent bad weather would mean a change in cereal supply policies.

Algeria buys 350,000T wheat, 50,000T barley - trade
PARIS, June 15 (Reuters) - Algeria's state grains agency OAIC has bought in a tender 350,000 tonnes of optional-origin milling wheat at $341 a tonne, including cost and freight, for shipment in July, European traders said on Wednesday.
The origin of the wheat would most likely be French, they said.

Oil rebounds on weaker dollar, lower U.S. crude stocks
SINGAPORE, June 16 (Reuters) - Oil rebounded on Thursday, with Brent up 1.4 percent, after the previous day's sharp drop and a falling dollar created buying opportunities against a backdrop of tumbling U.S. crude inventories and uncertainty over OPEC output.
"It's a little bit of buying on weakness after the significant fall overnight, and also dollar weakness is causing prices to rise," said Ben Westmore, a commodities analyst at National Australia Bank.

LME copper slips, U.S. data, Greek debt weigh
SHANGHAI, June 16 (Reuters) - London copper extended losses on Thursday as disappointing U.S. data and the unfolding Greek debt crisis weighed.
"As a widely used industrial metal, it is the most representative among the base metals in reflecting developments in the global economic outlook. And being in an overall supply deficit situation, it has also been attractive to speculators," he said.

China steel demand propped up by fixed asset investment -CISA
BEIJING, June 16 (Reuters) - Chinese steel consumption remained high in the first five months of the year, with strong fixed asset investment helping to offset weaknesses in consumer demand, the country's steel association said on Thursday.
However, the old problem of overproduction, together with high raw material costs, continued to weigh on the sector, the China Iron and Steel Association (CISA) said in its latest monthly report.

Gold loses footing as U.S. dollar jumps
SINGAPORE, June 16 (Reuters) - Gold lost its footing on Thursday after the U.S. dollar jumped against other currencies, but euro zone debt jitters could limit losses as investors fretted about the lack of resolution to solve the crisis in Greece.
"Investors are skeptical that a new government will be able to convince the disillusioned masses to accept more austerity measures. Instead, much needed budget cuts could be delayed,"   said Ong Yi Ling, investment analyst at Phillip Futures.

20110616 1231 Global Market Related News.

GLOBAL MARKETS: Greece fears hammer stocks, euro; bonds rally
NEW YORK, June 15 (Reuters) - World stocks and the euro slumped on Wednesday as upheaval in highly indebted Greece and indecision among Europe's leaders about helping the nation fed fears the euro zone member is edging closer to default.
"It had looked like we were making progress on addressing  Greece's problems but now it seems things are fraying at the edges. People are capitulating, taking a defensive posture and getting out of their risky trades." said George Davis, senior currency strategist at RBC Capital Markets in Toronto.

OIL: Oil dives 4 pct on demand worry, dollar surge
NEW YORK, June 15 (Reuters) - Oil slid more than 4 percent on Wednesday, as signs of further economic weakness fed demand worries and a rising dollar weighed, triggering technical sell stops and sending U.S. crude to its lowest since February.
"It's a rush for the exits. The market has been overvalued for some time now...the Brent market has been a bubble and the bubble is bursting today," said Tim Evans, energy analyst at Citi Futures Perspective.

NATURAL GAS: Natural gas ends off slightly, third straight loss
NEW YORK, June 15 (Reuters) - Front-month U.S. natural gas futures trimmed early losses, to end lower on Wednesday for a third day, as late short covering offset early selling on milder U.S. weather, sluggish economic data, and a sharp slide in crude oil.
"The (mild) weather this week has been pressuring prices, and negative economic sentiment may also be undercutting gas. But, I think we saw a little, late short covering ahead of the (EIA inventory) number tomorrow," said Steve Platt, analyst at Archer Financial in Chicago.

EURO COAL: Prices fall 50-75c as more offers emerge
LONDON, June 15 (Reuters) - Coal prices drifted 50-75 U.S. cents a tonne lower on Wednesday as more offers emerged, particularly for South African cargoes FOB Richards Bay, traders and utilities said.
"There are more offers in the market, for FOB Richards Bay during July and August particularly, with few takers, and that's having a price-dampening effect," one trader said.

COMMODITIES: Dollar surge hammers commods; US oil ends below $95
NEW YORK, June 15 (Reuters) - Commodities slid to their biggest daily decline in a month on Wednesday, with oil down $5 a barrel and corn dropping the session limit, as economic fears had investors dumping risky assets and piling into the dollar.
"Gold is a bastion of strength right now when the equity, crude oil and other commodity markets are weak," said Robert Lutts, chief investment officer of Cabot Money Management, a wealth management firm with $500 million in assets.

20110616 1047 Global Economic Related News.

US stocks retreat amid Europe’s debt woes as economic data disappoint
U.S. stocks fell, threatening the 2011 gain for the Standard & Poor’s 500 Index, on concern Greece will default and signs the American economy is cooling down. Wells Fargo & Co and Bank of America Corp slid at least 1.7%, following losses in European lenders, as officials failed to agree on a rescue plan for Greece. Alcoa Inc and Exxon Mobil Corp sank more than 2.1% as commodities slumped. The Morgan Stanley Cyclical Index of companies most-tied to the economy fell 2% on lower-than-forecast data on manufacturing, industrial output and homebuilder confidence. The S&P 500 slumped 1.7% to 1,265.42 at 4 pm in New York, trimming this year’s gain to 0.6%. The Dow Jones Industrial Average fell 178.84 points, or 1.5%, to 11,897.27. Both indexes dropped to the lowest levels since March. (Bloomberg)

U.S: Consumer prices increased in May as prices for everything from autos to hotel rooms climbed, signaling raw-material expenses are filtering through the economy. The consumer-price index increased 0.2% MoM last month and was up 3.6% YoY from May 2010, the biggest year-over-year advance since October 2008. (Source: Bloomberg)

U.S: Industrial production rose 0.1% MoM in May after no change. Factory production climbed 0.4% MoM, led by the biggest gain in business equipment output in four months. (Source: Bloomberg)

U.S: Manufacturing in New York area unexpectedly shrank in June, a sign the industry still faces parts shortages following the disaster in Japan. The Federal Reserve Bank of New York's general economic index dropped to minus 7.8, the lowest level since November, from 11.9 in May. (Source: Bloomberg)

U.S: Global demand for assets rose in April, Treasury says. Global demand for U.S. stocks, bonds and other financial assets rose in April from a month earlier, led by longer-maturity securities, the Treasury Department reported. Net buying of long-term equities, notes and bonds totaled USD 30.6b during the month compared with net buying of USD 24b in March. Including short-term securities such as stock swaps, foreigners purchased a net USD 68.2b, less than net buying of USD 127.1b the previous month. (Source: Bloomberg)

U.S: Homebuilder confidence fell in June to nine-month low as executives turned more pessimistic on the outlook for sales, a sign that any pickup will take time to develop. The National Association of Home Builders/Wells Fargo sentiment index unexpectedly fell to 13 from 16 in May, the biggest drop in a year. (Source: Bloomberg)

U.K: Jobless claims surged more than economists expected in May and wage growth slowed, pointing to a continued squeeze on households as inflation accelerates. Jobless-benefit claims jumped 19,600 from April, when they rose a revised 16,900. Wage growth excluding bonuses slowed to 2% in the three months through April, the weakest since the quarter through August. (Source: Bloomberg)

Greece: Crisis threat to Banks is main stability risk, ECB says. "Greece could have a contagion effect," ECB Vice President Vitor Constancio said at a briefing in Frankfurt, when presenting the bank's semi-annual Financial Stability Review. "That's the reason why we are against any sort of default with haircuts and any form of private-sector event that could lead to a credit event or a rating event." (Source: Bloomberg)

Singapore: Retail sales growth accelerated in April as an influx of tourists and rising wages spurred spending at department stores and boosted purchases of luxury goods. The index measuring purchases excluding automobiles rose 10.1% YoY after climbing a revised 7.4% YoY in March. Including vehicles, which are sold subject to government caps, total retail sales rose 8.1% YoY. (Source: Bloomberg)
Singapore: Employers added more jobs than initially estimated last quarter as the services industry increased payrolls to support demand in the growing economy. The city-state added 28,300 jobs in the three months through March, compared with an earlier estimate of 23,700, the Ministry of Manpower said in a statement. The seasonally adjusted unemployment rate fell to 1.9% from 2.2% the previous quarter. (Source: Bloomberg)

South Korea: Signals further rate increases to tame inflation
South Korea’s central bank signaled it will add to this year’s three interest-rate increases as inflation and household debt remain elevated. Sustained job growth and wage increases are adding to inflation that’s exceeded the central bank’s target since January, prompting the bank to raise interest rates last week. A surprise decrease in the nation’s unemployment rate last month adds to evidence that higher borrowing costs won’t cause the economy to slump, said economist Park Sang Hyun. (Bloomberg)

China: Boosts Treasuries buying as global U.S. demand rises
Global demand for US stocks, bonds and other financial assets rose in April from a month earlier, as China increased its holdings of Treasuries after five months of declines, the Treasury Department reported. Net buying of long-term equities, notes and bonds totaled USD30.6 billion during the month compared with net buying of USD24bn in March, according to statistics in Washington. Including short-term securities such as stock swaps, foreigners purchased a net USD68.2 billion, less than net buying of USD127.1bn the previous month. (Bloomberg)

China: Foreign investment increases in May on consumer demand. FDI rose 13.4% YoY in May as companies including Prada SpA and Samsonite LLC expand to tap rising consumer spending in the world's second-largest economy. Investment climbed to USD 9.2b. For the first five months, the total was USD 48b, a gain of 23.4% YoY, the ministry said. (Source: Bloomberg)

Philippines: Debt rating was raised to the highest level since the start of 2005 by Moody's, after the government took steps to reduce its budget deficit. The country's foreign and local currency long-term bond ratings were increased to Ba2 from Ba3, Moody's said in a statement. The outlook is stable. The move brings the country to two levels below investment grade, placing it above Vietnam and lower than Malaysia and Indonesia. (Source: Bloomberg)  

20110616 1044 Malaysia Corporate Related News.

 KLCI chart reading :
correction range bound upside biased. 
RHBCap: Aabar to buy ADCB's stake. Aabar Investments, the investment arm of Abu Dhabi government, intends to buy a 25% equity stake in RHB Capital Bhd from Abu Dhabi Commercial Bank at RM10.80 per share. (Source: The Edge Financial Daily)

Sunway-Suncity: Merger gets nod. Shareholders of Sunway Holdings Bhd and Sunway City Bhd have approved the proposed disposal of the two companies' assets and liabilities to Sunway Bhd at their EGMs. A new Sunway entity is expected to be listed on the Main Market of Bursa Malaysia in the third quarter of this year. (Source: The Edge Financial Daily)

TNB: Buys big supply of fuel oil. Tenaga Nasional Bhd (TNB) has bought more than 200,000 tonnes of fuel oil, for delivery between April and August, in addition to buying electricity from Singapore utility PowerSeraya. The fuel oil volumes were the largest TNB has purchased in at least five years. (Source: The Star)

Alam Maritim: Bids for RM400m to RM500m jobs. Alam Maritim Resources Bhd is bidding for RM400m to RM500m worth of contracts in offshore installation and construction (OIC) as well as offshore support vessel (OSV) services sector. (Source: The Star)

Construction: Eversendai to bid for RM1b-RM1.5b projects. Soon-to-be-listed structural steel construction and engineering company Eversendai Corp Bhd aims to bid for an additional RM1b to RM1.5b worth of projects for the rest of the year, after having secured almost RM350m so far this year. (Source: The Edge Financial Daily)

Property: 1MDB inks deal to kickstart Bandar Malaysia. 1MDB Bhd has signed several agreements that will pave way for the development of Bandar Malaysia, a mixed property project, on the site of the old Sungai Besi airport land. (Source: The Edge Financial Daily)

Oji strengthens grip
Japan’s Oji Paper Co Ltd has made a RM258m takeover offer for packaging product maker HPI Resources Bhd, the latest company from the Land of the Rising Sun to expand into Malaysia. This is its third acquisition in Malaysia and the second for a listed company. Oji Paper has bought corrugated carton maker United Kotak Bhd for RM63m and the company’s shares were delisted from Bursa Malaysia in Feb this year. (BT)

MMC-Gamuda JV to bid for MRT
MMC Corp Bhd and Gamuda Bhd has entered into an agreement to set up an unincorporated joint venture (JV) company, MMC Gamuda KVMRT (T) Joint Venture, to tender for the Klang Valley Mass Rapid Transit (MRT) project. In separate filings to Bursa Malaysia yesterday, both companies said it planned to prequalify and tender for the tunnelling, underground and other works related to the underground work package of the project. (Malaysian Reserve)

Eversendai to bid for RM1bn to RM1.5bn projects
Soon-to-be-listed structural steel construction and engineering company Eversendai Corp Bhd aims to bid for an additional RM1bn to RM1.5bn worth of projects for the rest of the year, after having secured almost RM350m so far this year. Its executive chairman and managing director Datuk AK Nathan said the amount was not a problem to be achieved by the company, based on its reputation as one of the most sought after specialized contractors in the world, having completed over 100 projects in 11 countries the Middle East, Singapore and Malaysia. (Financial Daily)     

20110616 1038 Renewable Energy Related News.

June 14 (Reuters) - Hanwei Energy Services Corp  said it agreed to sell most of its wind power equipment inventory to a Chinese customer for up to C$18 million ($18.4 million), sending its shares up 12 percent.
The company, which has a market capitalization of about C$17 million, said it received an initial amount of C$3 million from the customer and will get another C$1.5 million on completion of a final detailed inventory valuation.

MANILA, June 14 (Reuters) - The Philippines is set to award up to 80 permits this month to local and foreign firms to explore potential renewable energy sites as it aims to triple its clean-power capacity to account for half of its energy needs within 20 years.
The National Renewable Energy Programme (NREP), launched on Tuesday,  aims to increase renewable energy capacity to 15,400 MW by 2030 from about 5,400 MW at present, helping cut the country's dependence on imported oil.

HOUSTON, June 13 (Reuters) - Frustrated owners of wind generation in the U.S. Pacific Northwest have complained to federal regulators about a Bonneville Power Administration policy that curtails their operations in times of low demand and low prices.
The largest snowpack since 1997 has boosted Northwest river levels and hydro output, complicating growing competition between hydro and wind interests in the region where Bonneville operates the lion's share of the high-voltage power network.

June 14 (Reuters) - Mitsubishi Corp  is looking to build large-scale solar power plants in Japan, ahead of the start of a national feed-in tariff program, the Nikkei business daily said.
The company has selected Kumamoto Prefecture as a prospective site. The facility would have an output of more than 1 megawatt, with an initial investment of about 600-700 million yen ($7.5-$8.7 million) per megawatt, the Nikkei said.

MILAN, June 13 (Reuters) - Shares of Italian renewable energy companies rose on Monday as a vote against the reintroduction of nuclear power generation in Italy grew increasingly likely.
"I think most of the shortfall in power supply (from the lack of nuclear) will come from more gas but for sure there'll be more renewables," UniCredit analyst Javier Suarez said.

MADRID, June 10 (Reuters) - Iberian benchmark wholesale power recovered on Friday from falls in the previous session and bucked a pre-weekend downward trend due to a forecast drop in cheap and market-moving supplies of wind power.
National grid operator REE  expected Spanish wind parks to produce as little as 1,200 megawatts on Saturday, falling from 2,999 MW on Friday.

MADRID, June 9 (Reuters) - Iberian benchmark wholesale power prices gave back some recent gains on Thursday due to forecasts that wind parks will work harder and boost supplies of cheap electricity to the grid.
Spain wind parks were due to raise output to 5,560 megawatts by peak hour on Friday from 1,511 MW on Thursday afternoon, or 4.1 percent of demand, according to estimates by national grid operator REE .

MUNICH, June 9 (Reuters) - Suntech Power , the world's largest solar cell maker, expects its margins to expand this year, its chief executive said, adding he had no plans to sell his stake of about 30 percent in the company.
At a time when solar companies such as SunPower , LDK Solar  and SMA Solar  forecast shrinking profit margins due to falling module prices and oversupply, Suntech's Zhengrong Shi said he was confident the company could buck the trend.

LONDON, June 8 (Reuters) - Mergers and acquisitions activity in the renewable energy sector surged 70 percent in 2010 and shows little sign of cooling off this year, a KPMG survey showed on Wednesday.
A total of 446 M&A deals were completed last year in the renewable energy sector, up 70 percent on the 260 deals closed in 2009, according to the U.S tax, audit and advisory firm.

MUNICH, June 8 (Reuters) - First Solar , the world's largest solar company by market value, added its voice on Wednesday to those pointing to a slight recovery in Italy, the industry's second-largest market.
"Demand has picked up spottily, but it has picked up from zero," TK Kallenbach, president of First Solar's components business, told a press conference at Intersolar, the world's largest solar trade show.

20110616 1037 Biofuels Related News.

WASHINGTON, June 14 (Reuters) - A proposal to end subsidies for the U.S. ethanol industry failed a key vote in the Senate on Tuesday, falling far short of the support it needed to move forward.
The Senate voted 59 to 40 against limiting debate on the measure from Republican Tom Coburn that would have ended the federal ethanol tax credit and the tariff on ethanol imports before they were scheduled to expire at the end of year.

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.

SAO PAULO, June 13 (Reuters) - Cosan , Brazil's largest sugar and ethanol group, said on Monday it hired a market maker to improve liquidity of its common shares traded on the Sao Paulo stock exchange.
XP Investimentos Corretora was hired to trade Cosan shares for 12 months starting immediately. The period could be automatically extended for other 12 months, a securities filing said.

SAO PAULO, June 11 (Reuters) - Brazil's energy regulator has proposed rules to ensure sufficient stocks of ethanol fuel, its first move in plans to increase regulation of the stagnant industry and prevent a repeat of recent supply shortages.
Despite high prices for the biofuel and a massive expansion in the domestic fleet of cars that use it, Brazil's roughly $30 billion a year sugar cane industry has struggled with sluggish investment and insufficient supply. Officials from President Dilma Rousseff's government have criticized ethanol producers for what they describe as a failure to invest and plan.

BRUSSELS, June 10 (Reuters) - Governments should scrap policies to support biofuels because they are forcing up global food prices, according to a report by 10 international agencies including the World Bank and World Trade Organization.
The report adds to growing opposition to biofuels targets and subsidies such as those in Europe, Canada, India and the United States.

NEW YORK, June 9 (Reuters) - U.S. ethanol prices hit their highest level in about three years on Thursday after cold, rainy weather and flooding cut corn plantings, but the hike in the additive's costs was not expected to boost gasoline prices.Cash ethanol  rose 7 cents in the Midwest to $2.75 a gallon, a level not seen since 2008.
Even the thinly traded CBOT ethanol  futures contract rose nearly 3 percent to $2.761 a gallon, a three-year high for the spot month, on corn's rally to a record high.

MAPUTO, June 9 (Reuters) - Mozambique plans to boost biofuels production and introduce fuel blending next year in a bid to cut fuel imports, the energy minister said on Thursday.
The government expects to save about $22 million in the first year on petrol and diesel imports from the current $500 million it spends annually.

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.

RIO DE JANEIRO, June 8 (Reuters) - Gasoline sales in Brazil reached a new record in April, as drivers switched over to the fossil fuel when the price of widely used ethanol biofuel spiked, distributors' association Sindicom said on Wednesday.
Sindicom associates, which account for nearly 80 percent of the Brazilian gasoline market, reported sales of 2.4 billion liters in the month, up from 1.8 billion liters in April 2010.

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.

20110616 1032 Global Market Related News.

DJIA chart reading : downside biased.

Hang Seng chart reading : correction range bound downside biased.

Euro again under pressure in Asia; gold gains
SINGAPORE, June 15 (Reuters) - The euro came under fresh pressure in Asia on Wednesday as worry about euro zone debt intensified, prompting a move away from riskier assets which helped gold extend gains.
Asian stocks outside Japan were largely flat. Markets generally opened higher as positive data from the world's two largest economies encouraged investors to buy into growth-sensitive assets.

Asian Stocks Slump on Greek Debt, U.S. Economy (Source: Bloomberg)
Asian stocks fell, setting the region’s key benchmark index on course for a seventh straight weekly drop, on concern that debt-ridden Greece will default and as reports showed the U.S. economy is cooling. BHP Billiton Ltd. (BHP), the world’s No. 1 mining company by sales, sank 1.3 percent in Sydney, and Rio Tinto Group, the second largest, slid 1.4 percent as oil and copper prices slid in New York. Toyota Motor Corp. (7203), the largest global carmaker, percent in Tokyo retreated 0.9 percent. Samsung Electronics Co., which gets most of its revenue overseas, lost 1.3 percent in Seoul.

Stocks Slump on Concern Economic Recovery Slowing; Euro Weakens on Greece (Source: Bloomberg)
U.S. stocks sank the most in two weeks, almost erasing the 2011 gain for the Standard & Poor’s 500 Index, and the euro slid the most in more than a month amid rising concern that Greece will default and evidence that the American economy is slowing. Treasuries rallied. The S&P 500 fell 1.7 percent to a three-month low of 1,265.42 at 4 p.m. in New York, trimming its year-to-date gain to 0.6 percent, and the Stoxx Europe 600 Index closed down 1.1 percent. The euro lost 1.9 percent to $1.4166 and the cost of insuring Greek and Portuguese debt climbed to records. Oil sank to the lowest price since February as the S&P GSCI Index of commodities plunged 3.4 percent. The Dollar Index surged the most in 10 months, 10-year Treasury yields fell below 3 percent and two-year rates dropped the most since April.

International Demand for U.S. Assets Rises, Led by Longer-Term Securities (Source: Bloomberg)
Global demand for U.S. stocks, bonds and other financial assets rose in April from a month earlier, as China increased its holdings of Treasuries after five months of declines, the Treasury Department reported. Net buying of long-term equities, notes and bonds totaled $30.6 billion during the month compared with net buying of $24 billion in March, according to statistics issued today in Washington. Including short-term securities such as stock swaps, foreigners purchased a net $68.2 billion, less than net buying of $127.1 billion the previous month.

Consumer Prices in U.S. Increase More Than Estimated on Raw-Material Costs (Source: Bloomberg)
The cost of living in the U.S. rose more than forecast in May as prices for everything from autos to hotel rooms climbed, signaling raw-material expenses are filtering through the economy.

Homebuilder Confidence in U.S. Slides to Nine-Month Low on Sales Outlook (Source: Bloomberg)
Confidence among U.S. homebuilders slumped in June to the lowest level in nine months as executives turned more pessimistic on the outlook for sales, a sign that any pickup will take time to develop. The National Association of Home Builders/Wells Fargo sentiment index unexpectedly fell to 13 from 16 in May, the biggest drop in a year, data from the Washington-based group showed today. The median forecast of economists surveyed by Bloomberg News projected it would hold at 16.

Bernanke warns of crisis if US debt limit not raised
WASHINGTON, June 14 (Reuters) - U.S. Federal Reserve Chairman Ben Bernanke warned on Tuesday that a failure to lift the government's $14.3 trillion debt ceiling risks a potentially disastrous loss of confidence in America's creditworthiness.
In comments that could give fresh impetus to talks on raising the legal limit on the nation's debt, Bernanke said the United States could lose its prized AAA credit rating and the U.S. dollar's special status as a reserve currency might be damaged if Congress fails to act soon.

China Treasuries Holdings Rise (Source: Bloomberg)
China, the largest foreign owner of U.S. government debt, added to its holdings for the first time in six months in April as economic data weakened and the Federal Reserve signaled no extension of its $600 billion purchase plan.

Japan’s Ad-Hoc Radiation Tests Raise Concerns (Source: Bloomberg)
Kimie Nozaki, a mother of three children living 60 kilometers from the crippled Fukushima nuclear reactors, said she doesn’t trust the government’s testing program for radiation-contaminated food. “Information from the government lacks detail, which makes me even more nervous,” said Nozaki, who lives in Fukushima city about 35 miles from the plant that’s been emitting radiation since March 11 in the world’s worst nuclear disaster since Chernobyl.

South Korean Won Weakens to Three-Week Low, Bonds Gain on Greece Concern (Source: Bloomberg)
South Korea’s won weakened to a three-week low and government bonds gained as the European Union struggled to contain the debt crisis in Greece, damping demand for riskier assets.

Leader of the Pheu Thai party Yingluck Shinawatra Lead in Thai Vote Unsettles Investors (Source: Bloomberg)
Left motherless at a young age, Yingluck Shinawatra says her eldest brother became like a parent to her. From college in the U.S., to running Thailand’s biggest mobile phone company and now seeking to become prime minister, Thaksin Shinawatra guided her life.

Moody's warns of French banks downgrade on Greece
June 15 (Reuters) - Moody's Investors Service on Wednesday placed France's top three banks, BNP Paribas , Societe Generale  and Credit Agricole (CASA) , on review for a possible downgrade, citing the banks exposure to Greece's debt crisis.
"Today's actions reflect Moody's concerns about these banks' exposures to the Greek economy, either through direct holdings of government bonds or credit extended to the Greek private sector directly or through subsidiaries operating in Greece, a key factor for CASA and SocGen due to their local Greek banks," Moody's said in a note.

Papandreou Calls Confidence Vote (Source: Bloomberg)
Greek Prime Minister George Papandreou will reshuffle his Cabinet and seek a confidence vote today, battling to control a shrinking majority and push through austerity measures demanded by international lenders.

Greek Bank Threat is Main Stability Risk: ECB (Source: Bloomberg)
The European Central Bank said the threat of the Greek debt crisis spilling over into the banking sector is the biggest risk to the region’s financial stability. “Greece could have a contagion effect,” ECB Vice President Vitor Constancio said at a briefing in Frankfurt today, when presenting the bank’s semi-annual Financial Stability Review. “That’s the reason why we are against any sort of default with haircuts and any form of private-sector event that could lead to a credit event or a rating event.”

Greek Police Resort to Tear Gas as 20,000 Rally Against Austerity Measures (Source: Bloomberg)
Greek police used teargas to disperse protesters encircling the Parliament House in Athens as 20,000 people rallied against Prime Minister George Papandreou’s additional wage cuts and tax increases. Police fired the teargas at demonstrators who threw fire bombs and rocks at the Finance Ministry and banged on hotel shutters. Earlier, protesters rushed police guarding the parliament as union supporters joined up with demonstrators who have been camped out in front of the building for almost three weeks. Ports, banks, hospitals and state-run companies ground to a halt today as the two biggest unions went on strike.

Euro Plunges Most in Month as Greek Leader Loses Support Amid Debt Talks (Source: Bloomberg)
The euro dropped the most in almost six weeks against the dollar after the Greek prime minister’s government lost political support as the European Union struggled to break a deadlock on a second financial rescue for the nation. Europe’s shared currency fell versus most of its major counterparts, except for Sweden’s krona, Norway’s krone and Denmark’s krone, which dropped as commodity prices slumped. Demand for assets linked to economic growth also eased after reports showed slowing manufacturing in the U.S. Sterling fell versus the dollar after a report showed Britain’s jobless claims rose in May more than economists forecast.

Euro Trades Near Three-Week Low on Concern Over Greece’s Political Turmoil (Source: Bloomberg)
The euro traded 0.2 percent from a three-week low against the yen on concern a reshuffling of Greek Prime Minister George Papandreou ’s Cabinet will lead to a negotiation of the terms of the country’s rescue package.

King Defends Record-Low BOE Rate as Money Data Point to Inflation Slowdown (Source: Bloomberg)
Bank of England Governor Mervyn King said officials should continue to hold interest rates at a record low because weak growth in wages and money signal the current bout of above-target inflation will prove temporary. “Subdued rates of increase in average earnings, as well as remarkably -- some might say disturbingly -- low growth rates of broad money have provided strong signals that inflation will fall back in due course,” he said in a speech in London late yesterday. A rate increase “would have meant a weaker recovery, or even further falls in output” and “a risk of inflation falling well below the target in the medium term.”

FOREX-Euro slides on market jitters over Greece, banks
LONDON, June 15 (Reuters) - The euro fell nearly 1 percent against the dollar on Wednesday after euro zone ministers failed to reach agreement on how to tackle the Greek debt crisis and Moody's threatened large French banks with possible downgrades.
The increased investor aversion to risk triggered by the debt crisis pushed the euro close to a recent low of $1.4285 hit on the EBS trading platform and support around $1.4250 as European equities fell 0.2 percent.  

20110616 1026 Global Commodities Related News.

Corn (Source: CME)
US corn futures will be increasingly influenced by external markets after crumbling under pressure today from falling crude oil and the climbing US dollar, says Tim Hannagan, analyst for PFG Best. Grain traders will look to external markets for direction as they wait for USDA to update crop estimates June 30, he notes. Oil is linked to the grains because ethanol is made from corn and funds often trade in a basket of commodities. CBOT July corn ends down 29 3/4c at $7.25 3/4 a bushel.

Wheat (Source: CME)
US wheat futures end lower on spillover pressure from the steep fall in corn. Both grains are used for livestock feed. The drop in crude oil added pressure, as it was largely responsible for corn's slide, traders say. Additional selling was linked to the advancing US harvest. Weather conditions "should allow a fairly quick finish" in Oklahoma and Texas, according to Freese-Notis Weather. CBOT July wheat falls 22 3/4c to $7.08 1/2 a bushel; KCBT July loses 20 1/2c to $8.19 1/4; MGE July slides 31 1/2c to $9.37.

Corn, Soybeans Fall on Bets Sluggish U.S. Economy to Damp Commodity Use (Source: Bloomberg)
Corn fell, extending a slide to a four-week low, and soybeans declined on bets that the sluggish economy will curtail demand for food, animal feed and biofuel. Industrial production in the U.S. rose less than forecast in May and confidence among U.S. homebuilders slumped in June to the lowest in nine months, government and industry reports said today. Last week, output of ethanol, made mostly from corn, fell 3.8 percent, the biggest drop since mid-April.

Wheat Falls for Second Straight Day; Soybeans Gain; Corn Is Little Changed (Source: Bloomberg)
Wheat futures for September delivery fell 2.25 cents, or 0.3 percent, to $7.5975 a bushel at 9:34 a.m. on the Chicago Board of Trade. The price dropped 1.8 percent yesterday. Soybeans climbed, and corn was little changed.

Rice (Source: CME)
US rice futures weaken with the rest of the grains amid pressure from external markets. A slide in crude oil and rally in the US dollar put heavy pressure on corn, wheat and rice. Concerns about the world economy were seen as a negative factor for commodities as fears mounted about Greece. CBOT July rice drops 13c to $14.20 1/2 per hundredweight.

Saudi to import 2 mln tonnes wheat in 2011
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.

US ethanol plants toy with wheat, committed to corn
KANSAS CITY, June 15 (Reuters) - A rare inversion in prices of corn and wheat is prompting some ethanol plants to consider a previously unthinkable measure -- using wheat as their feedstock for producing the popular biofuel.
With the price of Chicago corn surging 5 percent, or more than 40 cents, above wheat, the economics of a short-term switch are asserting themselves.

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.

C.Agricole sees tight corn supply buoying grains
LONDON, June 14 (Reuters) - Low corn stocks and growing demand are likely to bolster grain prices for several years, an executive at French bank Credit Agricole  told Reuters.
"The corn story over the next 24-36 months looks pretty bullish because it's going to be hard to rebuild inventories from their current levels," said Bruce Tozer, head of EMEA sales softs and agricultural products at Credit Agricole Corporate and Investment Bank.

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 wheat crop faces risk from mice
SYDNEY, June 15 (Reuters) - An exploding population of mice is threatening some of Australia's key wheat growing areas, feeding on new crops and posing a threat to the 2011/12 crop of one of the world's top wheat exporters.
"It's been a very big problem as it has got the potential to cost us a lot money if they do get out hand," said Chris Groves , a grain grower in New South Wales state.   

Australia wheat exports set to jump 9 pct to record
SYDNEY, June 15 (Reuters) - Australia's wheat exports are set to jump nearly 9 percent to a record in the year to September 2012, the government's chief commodities forecaster said on Wednesday, with favourable weather in what is usually the world's fourth-biggest shipper.
The 2011-12 crop has several months before harvest at the end of the year so any harsh weather, which has in previous years led to sharp reductions in Australian crop forecasts, could alter the outlook.

EU approves 210 mln euro aid to E.coli-hit farmers
BRUSSELS, June 14 (Reuters) - A committee of European Union experts has approved financial aid of 210 million euros ($304 million) for fruit and vegetable farmers whose sales have been hit by a deadly E.coli outbreak, the bloc's executive said on Tuesday.
The European Commission said last week it had increased its aid offer from an initial 150 million euros after farm ministers from the bloc's 27 countries said that figure was too low.

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.

Morocco cbank sees 7.8 mln T grain harvest
RABAT, June 14 (Reuters) - Morocco's grain harvest this season will be 7.8 million tonnes, the central bank governor said on Tuesday, slightly up on last year's figure but below the agriculture ministry's estimate of 8.8 million tonnes.
"To round up the figure we expect it to reach 8 million tonnes. It (the central bank's forecast for the harvest) actually stands at 7.8 million tonnes," Abdelatif Jouahri told a news conference.

Heavy rains move to U.S. Midwest, more flooding
CHICAGO, June 14 (Reuters) - Rains return to the U.S. Midwest this week, increasing the risk of more farms flooding along the Missouri River and add to slowdowns in moving grain by rail, a forecaster said on Tuesday.
"At this point most of the planting is done -- you have to be concerned of the increase river flood potential with the levy breaking at Hamburg (Iowa) yesterday," said Mike Palmerino, forecaster with Telvent DTN weather service.

African Nations, Development Groups Seek G-20 Help With Food Information Network, Infrastructure (Source: CME)
African countries and development organizations called on the Group of 20 nations to help build transport and storage infrastructure and a food information network in order to deal with possible future food shortages. The call came at a meeting of the Sahel and West Africa Club--a group affiliated with the Organization for Economic Cooperation and Development--ahead of next week's conference of G-20 agriculture ministers. The club said that the removal of tariff barriers and better transport would be key factors in facilitating trade in the region. "Well-functioning regional markets need to be developed to open up intra-regional trade opportunities and better link farmers to markets," the club said in a statement. Delegates said they wanted to build a network of food stocks, so that countries could help neighbors stricken by food shortages. Currently, governments keep track of their own food stocks.
But a network of such data could help them better respond to problems in other countries. "Sometimes some countries have very good harvests," while others face shortages, said Alhousseini Bretaudeau, executive secretary of the Permanent Inter-State Committee for Drought Control in the Sahel. "The idea is that they should exchange information on this."

Drought Concerns Far From Over For UK - Environment Agency (Source: CME)
Drought concerns in the U.K. are far from being over despite recent episodes of rainfall across the country, the U.K.'s Environment Agency warned. "There has been nowhere near enough rainfall to alleviate the current drought status declared in parts of the U.K. such as Lincolnshire, Cambridgeshire and Bedfordshire," a spokesperson for the agency said. Parts of Lincolnshire, Cambridgeshire, Bedfordshire, Northamptonshire and western Norfolk are all suffering following the driest spring on record in southeast and central-southern England, with parts of the Midlands, southwest and southeast of England in a "near-drought" state. "It would take a period of sustained rainfall over the next few weeks to remove drought concerns," the agency spokesperson said. "A lot of the rainfall cannot be even absorbed by the soil right now as the land is so dry.
The river flows pick up slightly but then drop rapidly." The U.K.'s Environment agency said meetings continue to take place on a daily basis to monitor the situation across the country. The spokesperson said the environment agency has been asked to prepare a report for the U.K.'s farming agency Defra to examine the impact of drought and outline projections for the worst case scenarios. Worst-hit East Anglia accounts for 53% of the U.K.'s sugar beet output, 17% of wheat and 13% of barley output. England's wheat farmers are expected to produce their lowest yielding crop since the late 1980s next season, according to a survey by the National Farmers' Union released. Wheat production is expected to fall 2 million metric tons to below 12 million tons in 2011-12, 15% below the five-year average, due to poor growing conditions this year, the survey of farmers in the East Midlands, East Anglia and the South East found.
According to weather forecasts from the U.K. Met office, East Anglia is expected to receive some bursts of heavy showers over the next two weeks. "It remains changeable through the rest of the period with further showers or rain likely to affect many parts of the country. However, there should also be some drier, brighter and slightly warmer periods, these most likely in the south and southeast of the U.K.," the Met office said.

Invivo Trading Head: World 11-12 Wheat Output Largely Stable (Source: CME)
World wheat production is expected to remain largely stable next season but poor crops in the U.S. and Europe will see demand shift eastward, the head of trading at France's largest grain exporter said. Speaking on the sidelines of the cereals conference in England, Pierre Duclos of farming cooperative Invivo said recent rains over the north of France have made him hopeful wheat production will be 1 million-2 million tons above his previous prediction of 31 million tons. He said results from the barley harvest in Western France had yielded 5 tons a hectare compared with estimates of as low as 3 to 4 tons a hectare. "If we extend this vision to the rest of the country with wheat we could come back with 32 million tons, maybe 33," Duclos said.
Yet with France's exports likely to be limited to 7 million-7.5 million tons in the 2011-12 season, down from more than 12 million tons this crop year, and wheat output in the world's top exporter the U.S. likely to fall about 6 million tons, Duclos said exporters are likely to stick to their target markets. "We should stay more selective and more in a relationship with our traditional outlets," he said. In France's case, he said he expects to sell to Algeria, parts of West Africa, Cuba and even Morocco, which is expected to import around 2 million-2.5 million tons after rain damaged the quality of its domestic crop. Other large buyers who have turned to France and the U.S. this year, like the world's largest wheat importer Egypt, are likely to buy from the Black Sea, after Russia and Ukraine said they will remove export barriers on grain imposed in the wake of last year's drought.
"The allocation of supply from Russia will be more to Egypt, the far East, Tunisia, maybe a bit to Libya and also to Bangladesh," Duclos said. And while buyers like Egypt remain wary of committing to Russian origins right now due to uncertainty over the size of the country's harvest, Duclos said he expects buyers to become more keen on Black Sea wheat as the harvest approaches in September to October. Egypt bought 120,000 tons of wheat this week in its first tender since February but opted for more expensive French wheat over Russian or Ukrainian origin. "We have the feeling that maybe at this point the Egyptian government is not so confident in the Russian origination, which could disappear for political reasons at any time," Duclos said.

CWB Sees Large Unseeded Acres In Western Canada (Source: CME)
Western Canadian farmers dealing with the second year in a row of excessively wet conditions are expected to leave roughly 6.5 million acres of cropland unseeded this year, according to estimates from the Canadian Wheat Board released Tuesday at the CWB's annual weather and crop briefing in Winnipeg. Most of that unseeded land will be in Manitoba and Saskatchewan. While the number is better than the 10 million acres unseeded in 2010, only 500,000 acres would go unseeded in a normal year, said Bruce Burnett, director of weather and market analysis with the CWB. There is an estimated total of 63 million to 65 million acres of cropland in western Canada. "We have too much moisture in the south and too much dryness in the north," said Burnett, pointing to rainfall and snowpack maps showing the wettest areas in eastern Saskatchewan and western Manitoba.
Seeding of major crops was estimated to be about 86% complete across western Canada, which compares with a normal year which would see seeding at 100%, said Burnett. While the planting pace has increased over the past few weeks, Burnett noted the late start to seeding saw the bulk of the crop planted after May 15 and most crops were at least two weeks behind normal in development. "That brings in extra risks in terms of crop quality at the end of the growing season," said Burnett adding "hopefully we'll see an extended growing season this year, because we'll need those extra days to preserve quality and keep frost away from the latest crops." The CWB forecast total western Canadian spring wheat acres at 15.92 million, which would be down from the 2010 level of 16.21 million and the Statistics Canada early intentions report placing acres at 17.78 million. Durum acres were forecast at 4.01 million by the CWB, up from 3.15 million a year ago, but below the 5.05 million acre StatsCan forecast.
Barley acres were projected at 6.66 million by the CWB, from 6.42 million a year ago. However, Burnett said the lateness of spring planting could cause some acres to switch out of other crops and into barley. Total all-wheat production for western Canada is forecast at 17.7 million to 21.6 million metric tons, with a most likely projection near 20.3 million metric tons, according to the CWB. That would compare with 22.4 million tons in 2010/11 (Aug/Jul). Of that total, spring wheat production was forecast at around 15.9 million tons, from 17.1 million a year ago. Durum was pegged at 3.8 million tons, from 3 million in 2010, and barley production was forecast at 7.7 million, from 7 million.

Carrefour CEO Sees Higher Prices, No Quick Fix On Commodities (Source: CME)
French retail giant Carrefour SA's chief executive said shoppers can expect to see rising retail prices of consumer products in the short term and warned there is no quick fix to escalating global commodity costs. "In the short term, we are probably likely to see higher price levels," Lars Olofsson said at the Consumer Goods Forum's Global Summit. Olofsson also warned that prices of fruit and vegetables in Europe will go up. "The season has started off difficult. This will be a difficult year for the farmers. Prices will increase in this area." The CEO said there is no quick global solution to rising raw materials input prices. "There is not going to be a quick fix.
The scarcity of raw materials is not on the same path as demand." Olofsson added that more investment is needed in agriculture and energy to fight the trend. In April, Carrefour reported a 3.9% rise in first-quarter sales as purchases in the fast-growing, emerging markets of Brazil and China helped to offset stubbornly weak consumption in Western and Southern Europe.

Coffee weakens as dollar strengthens, sugar firms
LONDON, June 15 (Reuters) - ICE coffee futures fell under pressure from a strengthening dollar in early trade on Wednesday, while sugar firmed to probe near two-month highs underpinned by delays in Brazilian and Thai ports. ICE arabica coffee futures fell, weighed by the stronger dollar and Brazil's harvest, and were underpinned by a shortage of quality beans and the looming frost season in Brazil although dealers' fears over frost appeared to recede.

Ivorian cocoa arrivals up 14 pct, quality slips
ABIDJAN, June 14 (Reuters) - Cocoa output from top grower Ivory Coast is running 14 percent higher than last year, but recent heavy rains have caused quality to slip, exporters said on Tuesday.
Some 1,171,000 tonnes of cocoa beans reached the West African state's two ports by June 12 since the start of the season in October, exporters estimated, up from 1,024,690 tonnes in the same period a year ago.

Heavy rains could hurt Ivorian cocoa quality
ABIDJAN, June 14 (Reuters) - Abundant rains in Ivory Coast's cocoa growing regions last week raised concerns over bean quality from the top grower country during the remainder of the April-September midcrop, farmers and analysts said.
Farmers need the rain -- which picks up seasonally in June and July -- to boost crop growth, but too much of it can flood plantations, hinder sun-drying operations, and lead to diseases like black pod.

Oil Rises After Slumping to Four-Month Low; U.S. Distillate Demand Drops (Source: Bloomberg)
Oil rose from the lowest in almost four months in New York amid speculation that yesterday’s 4.6 percent slump was exaggerated. Futures climbed as much as 0.7 percent after plunging the most since May 11 yesterday. Prices closed below the lower Bollinger Band, a technical indicator which may signal prices have fallen too far. Crude’s 14-day relative strength index, a measure of how rapidly prices are advancing or declining, dropped to 38 yesterday, the lowest in four weeks.

Oil Tumbles Below $95 a Barrel on U.S. Economy and European Debt Concern (Source: Bloomberg)
Crude oil tumbled below $95 a barrel for the first time since February on concern that Europe’s debt crisis will deepen and on signals the U.S. economy is slowing, reducing fuel consumption. Futures dropped 4.6 percent as European finance ministers struggled to break a deadlock on a second rescue plan for Greece, sending the euro and most commodities lower. The Federal Reserve Bank of New York’s general economic index slipped to the lowest level since November. An Energy Department report today showed U.S. fuel demand fell for the first time in five weeks.

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.

Copper in London Drops for Second Day on Concern Global Economy Is Slowing (Source: Bloomberg)
Copper in London dropped for a second day on concern about the stability of the global economy as China may extend credit tightening measures and the debt crisis in Europe remains unresolved. The metal for three-month delivery on the London Metal Exchange fell as much as 0.7 percent to $9,090 a metric ton by 8:06 a.m. Singapore time.

China to return to copper market, deficit on cards
LONDON, June 15 (Reuters) - China is likely to return to the copper market and vindicate predictions of a deficit this year, easing current concerns that its absence could fuel a surplus.
The second quarter is when China traditionally buys copper ahead of strong construction and industrial activity in the third quarter. But this year purchases have been deferred, mostly because of record high prices.

METALS-Copper rises to 2-week high after euro zone data
LONDON, June 15 (Reuters) - Copper rose to its highest in two weeks on Wednesday after a surprise rise in euro zone industrial output, but a strong dollar limited gains and investors remained wary ahead U.S. data later in the day.
Three-month copper on the London Metal Exchange was up 0.14 percent at $9,181 a tonne at 0948 GMT, after closing the last session up 2.9 percent. It hit a session high of $9,213, its highest since June 1.

PRECIOUS-Sovereign debt concerns help buoy gold prices
LONDON, June 15 (Reuters) - Gold slipped on Wednesday as a stronger dollar prompted a flurry of sales, but investor buying sparked by sovereign debt concerns and inflationary pressures.
Spot gold  was bid at $1,518.29 a troy ounce at 0905 GMT from $1,523.25 an ounce late in New York on Tuesday. The precious metal hit a three-week low of $1,511.11 on Monday.

Gold Rises on Haven Demand as Euro Slumps Amid Escalating Greek Debt Woes (Source: Bloomberg)
Gold rose for the second straight day as Greek bailout talks stalled, driving the euro lower and boosting the appeal of the precious metal as a haven. The euro fell as much as 2 percent against the dollar and European equities slid as the region’s finance ministers failed to reach an agreement on another rescue package. BNP Paribas SA, France’s biggest bank, and rivals Societe Generale SA and Credit Agricole SA may have their credit ratings cut by Moody’s Investors Service because of their holdings in Greece.

20110616 1024 Soy Oil & Palm Oil Related News.

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

Soybeans (Source: CME)
US soybean futures end higher, managing to break away from a broader-based selloff in commodities. Traders weren't comfortable taking risk premium out of the soybean market with uncertainty still surrounding the end of the US soy planting season, said John Kleist, analyst with Traders unwinding long corn/short soy spreads added support, helping futures withstand the negative on prices of a surging US dollar and tumbling crude oil. CBOT July soy end unchanged at $13.68/bushel; Nov soy finish up 3c at $13.66.

Soybean Meal/Oil (Source: CME)
Soy product futures ended higher, bounce with soybeans. Soymeal and soyoil futures climbed in the face of broader based losses, as lingering uncertainty about the size of the 2011 soybean crop limited selling pressure in the markets, analysts said. CBOT July soymeal end up $1.30 at $360.00/short ton, and July soyoil end up 0.20 cents at 57.05 cents/pound.

China To Extend Cooking Oil Price Caps To Mid-August -Report (Source: CME)
China will extend price caps on cooking oil sales to Aug. 15 to keep the market stable ahead of heavy consumption during the Mid-Autumn Festival, the China Business News daily reported, quoting a soy crushing company executive. The price controls were imposed around November and extended in April as an informal government requirement for major producers, including Singapore-based Wilmar International Ltd. and domestic companies Cofco Ltd. and Chinatex Corp., to support Beijing's efforts to contain inflation. Wilmar last week confirmed that China hasn't lifted cooking oil price caps, which were technically expiring in early June, contradicting a foreign news report. Wilmar, which accounts for half of China's cooking oil retail market, operates in the country as the Yihai Kerry Group.
While the National Development and Reform Commission, which is in charge of market order, has declined to comment on the issue, its deputy chairman Xu Xianping said last week that inflationary pressure in China remained high, especially for oil and grain prices. China's inflation last month accelerated to 5.5% from a year earlier, the highest level since July 2008, the National Statistics Bureau said. The bureau warned that drought- and flood-affected vegetable prices may rise further, adding to inflationary pressures. The government has also put in place informal price ceilings on other consumer essentials, including flour, instant noodles and other common household products. This year's price caps were issued by verbal request from commission officials to selected companies, unlike in 2008, when a legal fiat was issued nationwide on all companies to cap a broad range of prices.
So far this year, the government hasn't punished any company for raising prices against the state's will, though it has fined one company--Unilever PLC --for making comments to the media on contemplated price hikes. The government held back from punishing Unilever when the company actually raised prices later.

Dupont Delays Seed In Soybean Spat (Source: CME)
DuPont Co. said it is indefinitely delaying the commercial launch of the genetically-modified soybean seed at the center of a long-running court battle with archrival Monsanto Co. DuPont's Pioneer Hi-Bred seed unit had been telling Wall Street that it would launch the Optimum GAT soybean line in 2013 or 2014. The seed, the launch of which has been delayed before, is controversial because DuPont, a Wilmington, Del., chemicals concern, is using a Monsanto gene in the soybean plant against the wishes of Monsanto, a crop-biotechnology giant based in St. Louis. DuPont's Pioneer unit said Tuesday that the soybean plant is in limbo because Monsanto refuses to give foreign regulators access to data necessary for the genetically modified crop to win import approvals. The interest of U.S. farmers in growing Optimum GAT soybeans would be severely limited if foreign countries don't accept them: about half of U.S. soybeans are exported.
Scott Partridge, a Monsanto vice president, said Tuesday that Monsanto offered more than a year ago to give DuPont permission to use the Monsanto gene in Optimum GAT soybean seed, as well as access to regulatory data, in exchange for compensation. "That offer is still on the table, and we remain open to dialogue with DuPont," Mr. Partridge said. Monsanto filed a patent-infringement suit over Optimum GAT in 2009 against DuPont, which then made anticompetitive allegations against Monsanto in the same St. Louis federal courthouse. The court fight, which is still under way, attracted the attention of the Obama administration's Justice Department, which in January 2010 opened a formal antitrust investigation into Monsanto's handling of the most widely planted genetically modified crop in the U.S., herbicide-tolerant soybeans. DuPont's Optimum GAT seeds are genetically modified to grow into soybean plants able to survive exposure to glyphosate-based weedkiller as well as another herbicide called acetolate synthase.
DuPont initially touted Optimum GAT to farmers as an alternative to them buying seeds equipped with Monsanto's gene for surviving glyphosate, the active ingredient in Monsanto's Roundup weedkiller. But Pioneer scientists ended up stacking Monsanto's Roundup Ready gene with their own glyphosate-tolerate gene. Monsanto argues in its lawsuit that the 2002 licensing agreement giving Pioneer access to Monsanto's Roundup Ready gene prohibits Pioneer from stacking it with any other company's glyphostate-tolerant gene in the same plant. DuPont interprets the 2002 contract differently and argues that any such gene-stacking prohibition would be illegal. "Monsanto has never made a good-faith offer to settle this case," said Doyle Karr, a spokesman for DuPont's Pioneer Hi-Bred unit. "Pioneer negotiated for, and received, broad stacking rights in 2002. There is no reason to pay twice for rights Pioneer has already acquired."

Palm oil edge up on demand; stock buildup seen
KUALA LUMPUR, June 15 (Reuters) - Malaysian palm oil futures edged up on Wednesday on robust export growth although traders bet expected stronger production of overall vegetable oil supplies in the coming months could still keep stocks growing and prices weak.
"Given the ample supply, the current prices are a bit too high. The export demand is there but that is not enough to lift the market much higher," said a trader with a foreign commodities brokerage.

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.

Drought to cut EU 2011/12 rapeseed crop- Oil World
HAMBURG, June 14 (Reuters) - Drought is likely to cut the European Union's 2011/12 rapeseed crop to 18.91 million tonnes from 20.56 million tonnes in 2010/11, Hamburg-based oilseeds analysts Oil World said on Tuesday.
"The deterioration of rapeseed production prospects is reaching alarming proportions," Oil World said. "The damage is most severe in Germany and France, the two major producers in the community. But sizeable crop losses also occurred in Poland as well as parts of the UK and Denmark."

Global 2011/12 soybean use above output- Oil World
HAMBURG, June 14 (Reuters) - Global 2011/12 soybean consumption is likely to exceed production by about 4 million tonnes with a smaller U.S. crop raising dependence on South American supplies, Hamburg-based oilseeds analysts Oil World said on Tuesday.
Global 2011/12 soybean production is likely to reach 265.50 million tonnes, below estimated season consumption of 269.7 million tonnes, Oil World forecast.