Friday, June 17, 2011

20110617 1843 FCPO EOD Daily Chart Study.

FCPO closed : 3198, changed : +5 points, volume : higher.
Bollinger band reading : downside biased with possible pullback correction.
MACD Histrogram : fall lower, seller still in control.
Support : 3150, 3100, 3070, 3050 level.
Resistance : 3200, 3250, 3270, 3300 level.
Comment :
FCPO market closed recorded marginal gain with much better volume participation while overnight soy oil closed recorded loss and currently trading weaker.
Fear of growing inventory above 2 million tonnes market triggered market to fall lower hitting 5 week low level before recovered upward as traders decided to reduce position ahead of the weekend and next Tuesday World Oilseed Conference in Turkey event.
Daily chart formed a down doji bar hammer candle (a possible reversal candle signal but confirmation needed) closed little above lower Bollinger band level after market opened higher, slide downward slowly followed by second session sell down activities touched lower Bolllinger band and recovered upward salvaged all intraday loss to closed recorded small gain.
Technical reading suggesting a downside biased market development with possible pullback correction 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.

20110617 1821 FKLI EOD Daily Chart Study.

FKLI closed : 1554 changed : 6.5 points, volume : higher.
Bollinger band reading : correction range bound little upside biased.
MACD Histrogram : turned upward again, buyer seller battling.
Support : 1550, 1540, 1530, 1515 level.
Resistance : 1565, 1580, 1590, 1600 level.
Comment :
FKLI closed recorded gain with higher volume transacted doing about 9.5 points discount compare to cash market that closed higher while Asia and Europe trading lower despite overnight U.S. market closed rebounded higher.
Asia region markets continue to registered loss as fear arise on potential Greece may default on its sovereign debt.
Daily chart formed an up bar candle with upper shadow closed above middle Bollinger band level after market opened 1 point higher, move upwards slowly tested near resistance level and eased lower slightly to closed off the high of the day.
Still, market is likely to have 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.

20110617 0953 Global Economic Related News.

Asia: Housing boom stalls as tightening puts brakes on prices
From Mumbai to Melbourne, Asia’s property boom is stalling as the world’s highest interest rates and government efforts to curb prices take hold. In China’s biggest cities, growth slowed in April after the government stepped up property measures. In India and Australia, prices are falling after the steepest interest rate increases. In the financial hubs of Hong Kong and Singapore, price growth is moderating after increased deposit requirements and land releases. (Financial Daily)

India: Raises rates for 10th time since 2010 to tame prices
India’s central bank raised interest rates for the 10th time since the start of 2010, extending the longest streak of monetary tightening in a decade after inflation accelerated. The Reserve Bank of India increased the repurchase rate to 7.5% from 7.25%. (Bloomberg)

UK: Retail sales drop more than forecast on fuel, job fears
UK retail sales dropped more than economists forecast in May as higher fuel costs and concern about employment prospects restrained consumer spending. Sales fell 1.4% from April, when they rose 1.1%, boosted by warm weather and an extra public holiday. (Bloomberg)

Philippines: Central bank ordered lenders to set aside more money as reserves for the first time since 2005, joining China and India in tightening monetary policy as the region fights inflation amid easing growth. Bangko Sentral ng Pilipinas increased the reserve requirement to 20% from 19% effective June 24, it said in a statement in Manila. (Source: Bloomberg)

US: Housing starts increased more than forecast in May
Housing starts in the US increased more than forecast in May, led by a jump in the West as other parts of the country languished. Work began on 560,000 houses at an annual pace, up 3.5% from the prior month. Building permits, a sign of future construction, also increased. (Bloomberg)

US: Confidence eroding among factories, consumers
Manufacturing in the Philadelphia region unexpectedly contracted in June and Americans’ views on the economy’s outlook soured, signaling an erosion of confidence in the expansion. The Federal Reserve Bank of Philadelphia’s general economic index fell to minus 7.7, the lowest since July 2009, from 3.9 the prior month. (Bloomberg)

20110617 0952 Malaysia Corporate Related News.

KLCI chart reading :
correction range bound upside biased.

Alstom team tipped to bag RM5bn power plant job
A consortium led by Alstom Asia, the world's third largest power-equipment maker, is poised to win a contract worth as much as RM5bn to help build a power plant in Johor, according to people familiar with the matter. The contract is for engineering, procurement and construction (EPC) works for the 1,000 MW Tanjung Bin coal-fired power plant. It is understood that the consortium, which also includes Mudajaya and Eversendai, beat Toshiba and a South Korean-led consortium to be the frontrunner. The consortium is set to start work in March next year and complete the project in four years. (BT)

10,000 orders for new Myvi so far, to make Indonesian debut
The new version the Perodua Myvi made its appearance across the country yesterday. Managing director Datuk Aminar Rashid Salleh said Perodua has received about 10,000 orders since booking opened on 4 June and the carmaker expects between 8,000 and 8,500 units to be sold monthly. The car will soon make its debut in the Indonesian market, marking Perodua's first foray there. He added that 500 units of the new Myvi will be shipped to Indonesia this month, while the official launch there will take place next month. (BT)

MAS and AirAsia to announce aircraft orders at Paris Air Show
MAS is set to announce new aircraft orders at the Paris Air Show next week, but rival AirAsia is aiming to conclude negotiations so that it can make a landmark aircraft order to double its fleet at the same show, sources said. Sources claim that MAS will likely exercise its option to buy up to 20 B737-800s. At catalogue prices of USD80.0m, the 20 aircraft will cost USD1.6bn. Whether MAS will exercise its option buy 10 more A330-300s is not clear. MAS also plans to order 30 aircraft for Firefly. Reports say AirAsia is likely to order as many as 200 Airbus jets which would be worth USD14bn to USD18bn at list prices. (StarBiz)

MAS: May boost fleet to tap Oneworld network. Malaysia Airlines' entry into the Oneworld airline alliance may see it ordering more planes. MAS will be attending the Paris Air Show next week, and an announcement on new orders is largely expected. (Source: Business Times)

AirAsia: To announce aircraft orders at Paris Air Show. AirAsia is aiming to conclude negotiations soon so that it can make a landmark aircraft order to double its fleet at the Paris Air Show. (Source: The Star)

Plantation: Malaysia wins case against Aussie palm oil labeling Bill, Malaysia is largest producer of certified, sustainable palm oil. Malaysia has won its case against Australia's proposed Truth in Labelling - Palm Oil Bill. The Community Affairs Legislative Committee of the Australian Senate in Canberra has recommended that the Bill not be passed. Separately, Malaysia is now the world's largest producer of certified and sustainable palm oil, accounting for half of the 4.2m tonnes of globally certified and sustainable palm oil to date carried out by the Roundtable on Sustainable Palm Oil (RSPO). (Source: Business Times) 

UEM Land targets RM5bn GDV in 2011
UEM Land is planning to launch projects with a total GDV of RM5bn this year as it aspires to see its revenue grow by 50%. With the acquisition of Sunrise, UEM Land is hoping to build its portfolio and surpass its competitors’ revenue in the near future. The company has set an internal target of 50% revenue growth for FY11 and a 10% ROI. UEM Land is currently undertaking the development of Nusajaya in Iskandar and several projects in Bangi, Cyberjaya, Kajang and Mont’ Kiara. (Financial Daily)

KPJ to build specialist centre in Iskandar
KPJ will collaborate with Johor Land to build a new specialist hospital on a 500,000 sq ft of land in Bandar Dato' Onn in the Iskandar Malaysia development region in Johor Baru. The project will be undertaken in two phases and the hospital will have the capacity of 400 beds, encompassing 280,000 sq ft. The first phase of the construction with 150 beds is expected to start by the end of 2012. Its total investment has yet to be determined, but an average of RM1,000 is budgeted for a bed. (BT)

20110617 0945 Global Market Related News.

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

Asia Housing Boom Stalls on Tightening (Source: Bloomberg)
From Mumbai to Melbourne, Asia’s property boom is stalling as the world’s highest interest rates and government efforts to curb prices take hold. In China’s biggest cities, growth slowed in April after the government stepped up property measures. In India and Australia, prices are falling after the steepest interest rate increases among major economies. In the financial hubs of Hong Kong and Singapore, price growth is moderating after increased deposit requirements and land releases. In Japan, the worst earthquake on record snuffed out signs of a recovery, while South Korean banks remain weighed by soured property loans.

Asia Stocks Rise on U.S. Job Data (Source: Bloomberg)
Asian stocks rose, driving up the region’s key index for the first day in three after a drop in U.S. jobless claims tempered concern that a recovery in the world’s biggest economy is faltering, and amid speculation Greece may avoid a default on its debt. James Hardie Industries SE (JHX), the largest seller of home siding in the U.S., gained 1.1 percent in Sydney on optimism that a slowdown in the American economy is easing. Toyota Motor Corp., the world’s biggest carmaker, climbed 0.5 percent in Tokyo. DeNA Co., an online social-media-site operator, surged 5.4 percent after raising its profit forecast by 21 percent.

U.S. Stocks Advance Amid Better-Than-Estimated Employment, Housing Reports (Source: Bloomberg)
U.S. stocks rebounded, a day after the Standard & Poor’s 500 Index declined to a three-month low, as better-than-estimated housing starts and jobless claims reports tempered concern about a slowdown in the economy. A gauge of 12 homebuilders in S&P indexes rallied 1.6 percent. Kroger Co. (KR) advanced 4.5 percent after the largest U.S. grocery chain raised its full-year profit forecast. Southern Union Co. (SUG) soared 18 percent as Energy Transfer Equity LP agreed to buy it for $4.2 billion in the largest purchase of a pipeline company this year. Benchmark indexes erased gains earlier today amid concern big banks will face larger capital increases to comply with proposed international regulations.

US consumers battle weaker growth, higher prices
WASHINGTON, June 15 (Reuters) - The U.S. economy is facing a troubling mix of higher prices and weak growth.
Underlying U.S. inflation rose to its highest level in nearly three years in May while a regional factory gauge posted a surprise contraction this month.

Initial Jobless Claims in U.S. Decline More Than Forecast as Firings Abate (Source: Bloomberg)
Fewer Americans than forecast filed applications for unemployment benefits last week, indicating the pickup in firings that began in April is abating. Jobless claims declined by 16,000 to 414,000 in the week ended June 11, Labor Department figures showed today in Washington. Economists surveyed by Bloomberg News projected 420,000 filings, according to the median forecast. The number of people on unemployment benefit rolls and those receiving extended payments decreased.

Consumers’ Expectations Decline to Lowest in Two Years in Bloomberg Index (Source: Bloomberg)
Americans’ views on the economy’s outlook soured in June, showing that unemployment, inflation and the slump in housing are concerning consumers. The Bloomberg gauge of economic expectations dropped to minus 31 this month, the lowest level since March 2009, from minus 16 in May. The Consumer Comfort Index, issued weekly, improved to minus 44 in the period to June 12, the highest level since mid April, from minus 45.9 as fuel prices kept falling.

Consumer Spending Fades in China Economy (Source: Bloomberg)
At the Haiyang Zhuangshi Co. hardware store in Beijing, sales of paint and aluminum window frames are slowing, one sign of a diminished role for consumer spending in China that’s foiling government objectives. “It seems the peak days are gone,” said owner Hu Mengbin, 42, whose daily revenue has dropped to about 3,000 yuan ($463) from as much as 4,000 yuan last year after China stepped up efforts to rein in home prices. “Between 2006 and 2008 when the property market was red hot, we could make quick money.”

India Signals Slower Pace of Rate Rises (Source: Bloomberg)
India’s central bank signaled it may slow the most aggressive monetary tightening among Asia’s major economies as risks to global growth threaten to undermine consumer demand.

Euro Poised for Second Weekly Decline Before EU Leaders Meet on Greece (Source: Bloomberg)
The euro headed for a second weekly decline before European leaders meet to discuss the Greek debt crisis today amid concern the situation is worsening. The single currency was near a one-month low versus the yen as Greek Prime Minister George Papandreou prepares to announce changes to his cabinet today after failing to garner opposition support for austerity measures. The yen rose against most of its major counterparts before a U.S. report forecast to show consumers grew less confident this month as the world’s largest economy slows.

Euro Weakens Third Day Versus Yen on Concern Greece Debt Crisis Worsening (Source: Bloomberg)
The euro fell for a third day against the yen as speculation the Greece debt crisis will worsen damped demand for the region’s currency. The euro dropped to 114.27 yen as of 9:15 a.m. in Tokyo from 114.56 yesterday in New York. The single currency was at $1.4193 from $1.4204.

Greek debt, political turmoil hit stocks, euro
LONDON, June 16 (Reuters) - World stocks hit a three-month low on Thursday, the euro slumped to a one-month trough and top-rated government bonds rose as concerns intensified the lack of a deal on Greek debt might trigger disorderly market moves.
Euro zone officials are struggling to agree on how to involve the private sector in a second Greek bailout without triggering a default that would likely destabilise other euro zone weaklings.

FOREX-Euro slumps vs Swissie, Greece concerns intensify
LONDON, June 16 (Reuters) - The euro hit a lifetime low against the Swiss franc and fell against other major currencies on Thursday as investors rushed into safe-haven assets on concerns that Greece's debt problems were spiralling out of control.
Selling in the euro accelerated, sending it to a three-week low versus the dollar as yields on weaker euro zone bond surged, expanding their spreads against German Bunds to their widest ever.

20110617 0937 Global Commodities Related News.

Corn (Source: CME)
US corn futures finish sharply lower as heavy selling by commodity funds extends into a third day. Commodity funds sold an estimated 21,000 contracts, pushing prices down 12% from Friday's record high. "Right now, it's, 'Get me out,'" says Sid Love, analyst for Kropf & Love Consulting. The Senate's vote to repeal an ethanol subsidy "helps explain continued fund-liquidation," according to Global Commodity Analytics & Consulting. Market participants fear demand for the grain will drop. CBOT July corn falls 24 1/4c to $7.01 1/2 a bushel.

Wheat (Source: CME)
US wheat futures end at a three-month low on spillover pressure from the steep slide in corn prices. The sell-off drags down wheat as both grains are used for livestock feed. Producers will increasingly feed wheat to their animals following today?s slide as they seek alternatives to pricey corn, predicts Alan Brugler of Brugler Marketing & Management. The drop in wheat prices "creates the seed for the next rally," he says. CBOT July wheat drops 35 1/4c to $6.73 1/4 a bushel; KCBT July loses 21 1/4c to $7.98; MGE July sinks 36 3/4c to $9.00 1/4.

Rice (Source: CME)
US rice futures drop to a 1-month low amid spillover pressure from a 5% drop in wheat. That weighs on rice as both grains are global food staples. The grain markets came under broad pressure from selling by commodity funds and jitters about demand, analysts note. Meanwhile, weekly export sales of US rice for delivery before August dropped to 13,200 metric tons, a marketing-year low and an 81% tumble from the prior four-week average. CBOT July rice drops 1.4% to $14.00 1/2 per hundredweight.

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.
"For the time being, the weather looks okay, this is going to be the focus as corn and soybean crops progress in the United States," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne. "The rains of course caused delays in planting but ultimately the moisture will be beneficial for crop yields as we go forward."

German farmers see 7.9 pct fall in 2011 grain crop
HAMBURG, June 16 (Reuters) - Germany's 2011 grain crop of all types is likely to fall 7.9 percent on the year as dry spring weather has damaged crops, the German Farm Cooperatives Association said on Thursday in its new harvest forecast.It forecast the crop to fall to 40.8 million tonnes from 44.3 million tonnes in 2010.
This is slightly up on its previous estimate of 40.7 million tonnes in May following recent rain which provided limited relief to parched crops.

French analyst cuts EU grain crop views due drought
PARIS, June 16 (Reuters) - French analyst Strategie Grains on Thursday sharply cut its forecast for this year's grains crops in the European Union due to renewed dry conditions in the Western part of the bloc in May and despite recent rainfall.
Soft wheat saw the largest reduction, at 6 million tonnes, with the estimate of the 2011 crop lowered to 125.6 million tonnes, now 1 percent below last year's 126.6 million tonnes.

Caucasus farmers optimistic ahead of wheat harvest
MOZDOKSKY DISTRICT, June 15 (Reuters) - Farmers in the North Caucasus are cautiously upbeat as they prepare for next month's harvest that will determine whether Russia can reprise its role as a key player on world markets after last year's export ban.
The region, and neighbouring southern districts, accounted for 45 percent of Russia's wheat crop last year, and milder weather near the Black Sea means they are traditionally the first to hit the market.

Showers for US Midwest raise farmland flood risk
CHICAGO, June 15 (Reuters) - Daily showers were forecast for the U.S. Midwest through the weekend, raising the risk of more farmland to flood along the Missouri River, a forecaster said on Wednesday.
"It's going to keep pressure on the Missouri River -- the Missouri, mid-Mississippi, Illinois river basins are continuing to be affected by the heavy to moderate rainfall," said Mike Palmerino, forecaster with Telvent DTN weather service.

'Cheap' wheat may find feed demand lacking: Gavin Maguire
-- Gavin Maguire is a Reuters market analyst. The views expressed are his own. To get his real-time views on the market, please join the Global Ags Forum. --
CHICAGO, June 15 (Reuters) - The recent surge in corn prices to above the price of Chicago wheat for the first time since 1996 has spurred expectations of a wave of demand
switching away from corn to wheat, specifically in the livestock feeding industry which has the capability to accommodate varying levels of both grains in animal diets.
But traders hoping for a surge in wheat demand from feeders may be disappointed, as limited wheat supplies in livestock-feeding regions, increased DDG supplies and ample pasture availability across the northern U.S. Plains may all serve to limit overall wheat use regardless of how 'cheap' it may get relative to corn.

UK rejects crackdown on commodity speculation
BOOTHBY GRAFFOE, June 15 (Reuters) - Britain does not believe speculators have played a central role in creating volatility in food commodity markets and sees little value in more regulation, farming minister Jim Paice told Reuters in an interview on Wednesday.
Nicolas Sarkozy, president of France which currently chairs the G20 group of developed nations, on Tuesday called for tighter controls on the speculators he blames for spiralling food and energy prices, spelling out reforms to put more trading under the thumb of regulators.

US House Approves Agriculture Spending Bill (Source: CME)
The U.S. House of Representatives voted to approve a $125.5 billion agriculture spending bill that includes controversial provisions to halt millions of dollars of payments to Brazil and bar the U.S. government from investing in new ethanol blender pumps. The bill that would fund the U.S. Department of Agriculture, Food and Drug Administration and Commodity Futures Trading Commission in fiscal year 2012 sparked Democrat outrage over cuts for a nutrition program that helps needy women and children. The Obama administration has sharply criticized the bill for underfunding efforts to beef up food safety initiatives and complained that it doesn't contain enough funds for the government to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act. Spending on the USDA's Women Infants and Children program was lowered by $685 million in the bill, an action that Democrats warned would leave hundreds of thousands of people without needed assistance.
Republicans argued that there are contingency funds that would make sure no one would be left without needed aid. The bill contains a budget of $172 million for the CFTC in the 12-month period beginning Oct. 1, substantially less than the $308 million sought by President Barack Obama, and also less than the agency's current budget of $202 million. Rep. Scott Garrett (R., N.J.) added an amendment that would require regulators to delay certain new requirements for the over-the-counter derivatives trades for at least 12 months, while they collect data on those markets. House members also approved an amendment to the bill that halts U.S. payments to Brazil as part of a complex scheme that keeps Brazil from placing heavy duties on U.S. exports there. The U.S. government is now paying Brazil $12.275 million per month. Brazil won the right to impose the tariffs on U.S. goods during a World Trade Organization battle. Opponents of the amendment argued that cutting off the payments could start a trade war with Brazil.
Another amendment approved as part of the spending bill prohibits the USDA from funding the installation of new gas station pumps that can dispense fuel with higher ethanol content. The USDA is set to soon begin offering grants and loan guarantees for the installation of costly new "blender pumps" so drivers can purchase fuel with a higher ratio of corn-based ethanol. Most gasoline sold in the U.S. is 10% ethanol, but a growing fleet of flexible-fuel vehicles can run on an 85%-ethanol blend, or E85.

Global Farm Commodity Prices To Ease Through 2H - Rabobank (Source: CME)
Agricultural lender Rabobank expects global farm commodity prices to ease through the calendar second half, but they won't collapse as historical trends suggest is possible. Following every significant grains market rally since 1980 there has been a sharp and significant slump in prices with most corrections starting in July or August, the bank reported in a monthly outlook issued. The major coffee rallies in the past three decades have also turned sharply lower through the northern summer while cotton typically comes under pressure during this time of year, it said. "We don't expect a collapse in prices this time but we are forecasting an easing in prices" with the bank's modelling suggesting some bearish seasonality impact on markets will emerge in the calendar second half on a quarterly average basis, it said.
Macro uncertainties remain and fears of a slowdown in global and particularly Chinese economic growth are likely to weaken demand and moderate speculative interest in agricultural markets, the report said. But prices will be supported this year by ongoing production uncertainty and "incredibly tight" U.S. and global fundamentals, particularly for corn, cotton and sugar, though prices will slip from second quarter levels, it said. "There remains too many risks this time around for prices to collapse quickly back to long-run average levels," the bank forecast. With fundamental projections tight into 2011-12, favorable seasonal conditions will be needed through to harvest just to maintain current low stock to use levels, it said.

Agriculture Players Skeptical On G20 Food Transparency Plans (Source: CME)
Plans by the Group of 20 industrialized and emerging nations to create a global database on food production and stocks are unlikely to reduce price volatility, market analysts and traders said. Agriculture ministers are expected to announce next week the creation of the Agriculture Market Information System--or AMIS--an initiative designed to bring the same transparency to world agricultural markets as already exists in oil. But experts argue that even collating accurate data on inventories in major agricultural players like China and Russia will be virtually impossible, while few countries are likely to agree to share such data willingly. "It would not be in any of these countries' interest to let it be known in public how vulnerable that particular country is," said Bratin Sanyal, head of Asian equity investments for global bank ING based in Hong Kong.
"Asian countries are sitting on huge foreign exchange reserves and no-one ever makes it public what the composition of those reserves are. It's a good policy objective but whether it will ever be achieved I doubt it." Nicolas Sarkozy, president of France, has put improving food security at the top of his agenda for his leadership of the G20. World food prices surged to a record high in February, according to the United Nations, and the rising cost of staple foodstuffs was blamed for sparking the unrest in Arab countries this spring. Bruno Le Maire, the French agriculture minister, told a conference this month that he is confident that ministers will reach a consensus at the meeting on June 22-23 in Paris. And Abdolreza Abbassian, secretary of the Intergovernmental Group on Grains at the U.N.'s Food and Agriculture Organization, which will have the mandate to create a secretariat for AMIS, said it is "realistic" to expect an agreement.
"The ministers are not coming with pledges of billions of dollars, they're coming with recommendations," he said. "This initiative is strikingly more positive than anything [agreed by the G20] in the recent past." Yet farmers and traders active in Europe's grain markets were much more sceptical about whether such a system would actually be transparent or do anything to reduce market volatility. Jon Duffy, trading director of Frontier Agriculture, which is part owned by grain giant Cargill Inc, told a grain conference that it was "a lovely aim but I just don't think it's going to happen" due to the difficulty of procuring reliable information. Getting reliable data out of China, for example, is deemed nigh on impossible by many due to the size and disparate location of its stocks. Even the most accurate estimates are considered to have a 3.5% margin of error--equivalent to around 10 million metric tons of corn, for example.
Peter Kendall, president of the National Farmers' Union, however, said that large players like Russia, whose ban on grain exports last summer sparked the rally in prices, would have no interest in sharing information. "The big planned economies have a big self interest in not being as transparent as we would like," he said.

Agriculture Needs Global Regulation After Damaging Economies, Sarkozy Says (Source: CME)
Agricultural futures markets need global regulation because price swings are damaging producers and consumers, French President Nicolas Sarkozy said, a week before G-20 ministers meet to discuss global food supply. France, which heads the Group of 20 nations this year, will propose a market-information system similar to what already exists in oil, Sarkozy told a conference of farm groups in Paris today. The G-20 members account for 70 percent of agricultural land and 80 percent of world food trade, he said. Their farm ministers meet in Paris on June 22.

Wheat Futures Drop to Less Than $7 Per Bushel for First Time Since March (Source: CME)
Wheat for September delivery declined as much as 1.7 percent to $6.9625 a bushel on the Chicago Board of Trade, before trading at $7.0275 at 8:08 a.m. Singapore time. Corn for December delivery slipped 0.1 pecent to $6.5225 a bushel, while soybeans for November delivery were little changed at $13.4975 a bushel.

Wheat Futures Drop to Less Than $7 Per Bushel for First Time Since March (Source: CME)
Wheat for September delivery declined as much as 1.7 percent to $6.9625 a bushel on the Chicago Board of Trade, before trading at $7.0275 at 8:08 a.m. Singapore time. Corn for December delivery slipped 0.1 pecent to $6.5225 a bushel, while soybeans for November delivery were little changed at $13.4975 a bushel.

Coffee firms, stronger dollar caps upside; sugar dips
LONDON, June 16 (Reuters) - ICE coffee futures firmed in light early trade on Thursday under pressure from a stronger dollar, while raw sugar dipped consolidating below two-month highs underpinned by delays in Brazilian and Thai ports.
ICE cocoa futures eased under pressure from the firmer dollar, with upside limited by a steady flow of supplies from West Africa.

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.

Oil Near Two-Day High After U.S. Economic Reports; Heads for Weekly Drop (Source: CME)
Oil traded near a two-day high in New York after reports showed U.S. housing starts rose more than forecast in May and fewer Americans filed applications for unemployment benefit, signaling fuel demand may increase. Futures were little changed after climbing 0.2 percent yesterday as the Labor Department said jobless claims fell by 16,000 to 414,000 in the week ended June 11. Work began on 560,000 houses at an annual pace, up 3.5 percent from the prior month and exceeding the 545,000 median forecast of economists surveyed by Bloomberg News, Commerce Department figures showed. Oil prices are down 4.3 percent this week.

Senate Votes to End Tax Break for Ethanol (Source: CME)
The U.S. Senate voted to eliminate a tax credit and a tariff that subsidize ethanol production, providing the strongest signal yet that Congress will curtail subsidies for corn-based biofuel. The 73-27 vote exceeded the 60-vote threshold needed to advance the measure as part of an economic development bill. The underlying legislation isn’t likely to become law, so the vote mostly indicated that it will be difficult for ethanol supporters to extend the 45-cent-a-gallon tax break and the 54- cent-a-gallon tariff beyond their scheduled Dec. 31 expiration.

ALUMINIUM-Major market developments in May
LONDON, June 15 (Reuters) - Aluminium lost ground in May after initial strength but will draw support near term from tight physical supplies and the fact that prices are close to the break-even costs of Chinese aluminium smelters.
"We're not bullish on aluminium, but the physical market is quite tight and the downside will be supported by the marginal costs of Chinese producers," said Macquarie Bank's Jim Lennon.

NICKEL-Major market developments in May
LONDON, June 15 (Reuters) - Nickel prices were under pressure for much of May and still look vulnerable to further weakness as near-term demand worries dominate.
Demand from the key stainless steel industry is easing for seasonal reasons, but more than would normally be expected.
"Stainless producers have announced cuts and maintenance closures in Europe and Asia. The third-quarter seasonal dip looks like it's coming a bit early," said Macquarie Bank's Jim Lennon.

Copper in London Climbs by 0.5%, Heads for First Weekly Advance in Three (Source: CME)
Copper climbed for the first time in three days on optimism that China’s demand is improving, tempering concern about Europe’s fiscal crisis. The metal for three-month delivery on the London Metal Exchange rose as much as 0.5 percent to $9,105.50 a metric ton, and last traded at $9,105 by 8:04 a.m. Singapore time. It is up 1.9 percent this week, set for its first weekly advance in three weeks.

Premiums for spot copper to China seen up 
HONG KONG, June 16 (Reuters) - Premiums for spot copper may jump by a quarter once the third-month arbitrage window opens between the London Metal Exchange and Shanghai, which could hasten deliveries of LME stocks in Asia to China, industry sources said on Thursday.
The arbitrage window between the benchmark three-month LME copper  and the third month in Shanghai  closed in the fourth quarter of 2010, cutting imports to the world's top copper consumer this year.

S.Korea to import 12,000 t/y copper from Mexico Boleo
SEOUL, June 16 (Reuters) - Korea Resources Corp (KORES) said that it would import 12,000 tonnes of copper a year from Mexico's Boleo mining project from 2013 for 23 years, as ground was broken on the project three years after an investment deal on it was signed.
The company said in a statement that a total of 1.4 trillion won ($1.29 billion) would be invested through the first half of 2013 to produce the metals from the second half of the year. 

METALS-Copper slides on higher dlr, demand fears
LONDON, June 16 (Reuters) - Copper prices slid on Wednesday as the dollar rose and fears of weak growth and demand prospects from the United States, the world's largest economy, hit investor sentiment.
Aluminium touched a two and a half week low of $2,545 a tonne and nickel tumbled to $21,780 a tonne, its lowest since last November. Both metals came under pressure on concerns about an oversupplied market.

PRECIOUS-Gold falls as dollar gains from Greek crisis
LONDON, June 16 (Reuters) - Gold fell on Thursday after the U.S. dollar hit a three-week high against the euro as concern escalated over the impact of the Greek debt crisis on the euro zone, knocking commodities.
The Greek prime minister said he would form a new government, while euro zone finance ministers conceded that an agreement over a second international bailout for Athens would take longer than expected.

Gold Climbs for Third Day on Demand for Haven From Beleaguered Currencies (Source: CME)
Gold rose for the third straight day as volatility in the currency markets boosted demand for the precious metal as an alternative investment. The euro fell to a three-week low against the dollar on speculation that Greece’s sovereign-debt crisis will worsen as talks over another aid package stalled. The greenback has dropped 12 percent in the past year against a basket of major currencies. Gold priced in British pounds rose to a record today.

20110617 0936 Soy Oil & Palm Oil Related News.

Soy Oil chart reading : downside biased.

Soybeans (Source: CME)
US soybean futures slide to a four-week low as widespread jitters surrounding the global economy encouraged traders to reduce risk exposure in the market. Spillover weakness from a sharp sell-off in corn futures for the third consecutive day, lagging demand and favorable weather form crop development weighed on prices as well, analysts say. However, prices continued to hold within recent ranges, as concerns about potential acres losses in the face of tight supply outlooks, limited declines, analysts add. CBOT July soy down 17 1/2c at $13.50 1/2/bushel.

Soybean Meal/Oil (Source: CME)
Soy product futures tumbled in unison with soybeans, succumbing to widespread selling across commodity markets, analysts said. Debt issues in Europe raised enough concerns to entice traders to reduce risk exposure in riskier asset classes, analysts said. CBOT July soyoil ended down 0.73c at 56.32 cents/pound, and July soymeal finished down $6.30 at $353.70 short ton.

Argentina Government Trims Soy Forecast, Raises Corn Forecast (Source: CME)
Argentina raised its corn forecast and slightly trimmed its soybean forecast in its monthly crop report, as the harvests near completion and the amount of final output becomes clearer. Final production from the 2010-11 corn crop was raised to 21.6 million metric tons, up from 20.9 million tons forecast by the agriculture ministry a month earlier. Argentina is the world's second-largest corn exporter after the U.S. About 84% of the corn crop has been harvested so far. The ministry trimmed its forecast for soybean production to 49.6 million tons, down from 50.4 million tons. Argentina leads soymeal and soyoil exports and ranks third globally for soybean exports. So far, about 97% of the soybean crop has been harvested.
Meanwhile, winter wheat planting is in full swing and the ministry trimmed its forecast for fields planted with the cereal to 4.7 million hectares from five million.  Argentina is a leading global wheat exporter, with the bulk of shipments going to neighboring Brazil.

Focus on Australia canola crop as supplies tighten
SYDNEY, June 16 (Reuters) - Australia's official 2011/12 canola crop estimate may be too optimistic as a mice plague is threatening production in the world's second-largest exporter of the oilseed, an industry official said on Thursday.
The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) on Wednesday projected the 2011/12 crop could rise 6 percent to 2.3 million tonnes but farmers saw risks.

Palm oil at 5-wk lows as stocks seen hitting 2 mln T
KUALA LUMPUR, June 16 (Reuters) - Malaysian palm oil futures dropped to more than five-week lows on Thursday as traders cut back on worries that stocks could grow beyond 2 million tonnes this month.
"I think 3,000 ringgit needs to come, sooner or later. We are on track for declines and that is helped by weaker crude oil and soyoil as well," said a trader with a foreign commodities brokerage.

Dry weather a threat to US corn, soy - forecaster
CHICAGO, June 15 (Reuters) - U.S. corn and soybean production could be hampered by drier-than-usual weather this summer at a time when global food supplies already are tight due to crop failures around the world, a top private forecaster said on Wednesday.
"There will be dryness out there," said Drew Lerner, president and senior agricultural meteorologist of World Weather Inc. "There will be some yields that are cut down."