Wednesday, June 22, 2011

20110622 1803 FCPO EOD Daily Chart Study.


FCPO closed : 3178, changed : -43 points, volume : higher.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : recovering, seller take profit.
Support : 3150, 3100, 3070, 3050 level.
Resistance : 3200, 3250, 3270, 3300 level.
Comment :
FCPO closed recorded loss with better volume changed hand while overnight soy oil closed higher and currently trading registering loss.
Rising output level plus worry of flattening demand factor kept market to trade in lower ground erasing a earlier gain.
Daily chart formed a down bar candle closed little nearer to lower Bollinger band after market opened 1 tick above yesterday closed, testing higher level and moved downwards all the way to closed at the low of the day.
Chart reading shows that market is trading within a correction range bound downside biased phase 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.

20110622 1728 FKLI EOD Daily Chart Study.


FKLI closed : 1563.5 changed : -1 points, volume : lower.
Bollinger band reading : upside biased with possible pullback correction.
MACD Histrogram : recovering, buyer in advantage
Support : 1550, 1540, 1530, 1515 level.
Resistance : 1565, 1580, 1590, 1600 level.
Comment :
Quiet market FKLI closed recorded small loss with relatively low volume participation doing 3.5 points discount compare to cash market that closed recorded gain while Asia and Europe markets having mixed development and overnight U.S. market continue rebounded higher.
Factor to monitor will be U.S. Federal Reserve effort seeking agreement to raise debts limit in order to provide further stimulus to the U.S. economy.
Daily chart formed a down bar candle with lower shadow closed near upper Bollinger band level after market opened gap up, slide lower followed by a small up swing after lunch session before continue to eased lower to closed near the low of the day. 
Chart reading shows that market is likely to trade upside biased 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.

20110622 1508 Global Market & Commodities Related News.

Euro stabilises after Greek vote, Fed eyed
SINGAPORE, June 22 (Reuters) - The euro stabilised on Wednesday and Asian shares rose after the Greek government won a vote of confidence as expected, prompting investors to shift focus to the U.S. Federal Reserve's news conference due later in the day for further cues.
The euro last traded at $1.4366 , extending its recovery from a three-week low of $1.4073 it hit last Thursday, but below the high of $1.4435 it touched after the vote in Athens, bringing the beleaguered country a step closer to a 12 billion euro aid package.

Corn rises for 3rd day on weather woes, wheat firm
SINGAPORE, June 22 (Reuters) - Chicago corn gained around half a percent on Wednesday, rising for a third straight session on forecasts of hot weather moving into the U.S. corn belt, threatening crop prospects at a time when old-crop supplies are running tight.
"Corn has rallied in the last few sessions as investors are buying on dips because fundamentals are supportive for prices," said Lynette Tan, an analyst with Phillip Futures in Singapore.

Sierra Leone seeks 50,000 tonnes rice from Vietnam
HANOI, June 22 (Reuters) - A delegation from Sierra Leone has held talks with Vinafood 2, Vietnam's top rice exporter, to import 50,000 tonnes of the grain, a government statement said, as the southeast Asian nation seeks to boost rice shipment to Africa.
The trade ministers of Sierra Leone and Vietnam signed a memorandum of understanding on rice trading in Hanoi on Tuesday, by which Vietnam hopes to sell more rice to African nations, the Industry and Trade Ministry said in the statement.

Farm export subsidy cuts harder now - EU
WASHINGTON, June 21 (Reuters) - Europe's top trade official on Tuesday downplayed chances the European Union would agree to eliminate agricultural export subsidies as part of a proposed  partial deal this December in longrunning world trade talks.
"We are ready to discuss about it, but the situation has dramatically changed," EU Trade Commissioner Karel De Gucht said in a speech at the U.S. Chamber of Commerce.

Brazilian port to limit loading of bagged sugar
SAO PAULO, June 21 (Reuters) - Brazil's main sugar port of Santos will restrict the loading of bagged sugar in the public quay, a measure aimed at improving efficiency, an official said on Tuesday.
But shipping agents fear the decision could cause more congestion in the short term.

World wheat buyers watch N. American spring wheat
CHICAGO, June 21 (Reuters) - World wheat buyers are not as nervous about prices as they were a few weeks ago, but they will not feel confident about avoiding a repeat of 2008's price spike until they get a better picture of North American plantings.
U.S. farmers still had 1.2 million acres of spring wheat to plant as of Sunday -- a date when the crop is typically in the ground and growing. But relentless rains have plagued the northern Plains as well as the Canadian Prairies where 2 million acres of spring wheat will likely go unplanted.

Brent rises as Greece passes vote; market awaits Fed decision
SINGAPORE, June 22 (Reuters) - Brent crude rose on Wednesday, reversing three days of losses,  as Greece's embattled government survived a confidence vote critical to avoid a debt default and as investors awaited the outcome of a key U.S. Federal Reserve meeting.
"It looks like we are going to see a long slog through the rest of this year," said Tony Nunan, a risk manager with Tokyo-based Mitsubishi Corp. "People are worried about the world's economic recovery. We are just squeaking by from one hurdle to another."

High US gasoline prices to cut July 4 travel -AAA
NEW YORK, June 22 (Reuters) - U.S. Independence Day holiday travel will fall 2.5 percent from a year ago as expensive gasoline eats at driving demand, travel group AAA forecast on Wednesday.
Even with the recent decline in gasoline prices, AAA estimates 39 million Americans will travel 50 miles or more from home during the July 4 weekend, down from 40 million last year.

Copper down, dollar up; Greek debt, Fed meet eyed
SHANGHAI, June 22 (Reuters) - London copper fell on Wednesday as investors turned their attention to the tough austerity measures ahead for Greece and a U.S. interest rate decision later in the day.
"Copper prices haven't moved a lot lately and there isn't a lot of good news to buoy prices today. The euro debt crisis has not been resolved and weakness in the U.S. economy may have negative consequences on the global economy in the later part of the year," said Shanghai Dongzheng futures trader Du Xiao Hua.

Manila's Philex says sees gains in $1 bln copper-gold prospect
MANILA, June 22 (Reuters) - Top Philippine miner Philex Mining Corp  estimates its $1 billion Boyongan-Bayugo copper-gold prospect in southern Surigao province contained 5 billion pounds of copper and 9 million ounces of gold, adding that a recent acquisition may enhance the value of the project.
Philex said in a statement on Wednesday the findings were contained in a recently completed independent mineral resource estimate by SRK Perth, Australia for the Silangan project managed by its wholly owned unit Silangan Mindanao Mining Co Inc.

China's global share of rare earth production to drop - report
BEIJING, June 22 (Reuters) - China's global share of rare earth output will drop steeply in the next two years as other countries ramp up production to compensate for domestic curbs on mining the minerals, a former government official and future rare earth group chief said.
The country's rare earth output would drop from 95 percent of global output to 60 percent, reversing global reliance on China, Wang Caifeng, a former Ministry of Industry and Information Technology (MIIT) official told the official China Daily.

Gold steady near 2-week high, eyes on Fed
SINGAPORE, June 22 (Reuters) - Gold held steady on Wednesday ahead of the outcome of a U.S. Federal Reserve meeting which could weigh on the dollar,   while worries the Greek debt crisis may affect other countries were likely to spur buying from investors.
"Approaching the resistance level, we can say gold is a bit cautious," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

20110622 1132 Global Market & Commodities Related News.

GLOBAL MARKETS: Euro stabilises after Greek vote, Fed eyed
SINGAPORE, June 22 (Reuters) - The euro stabilised below $1.44 in early Asian trade on Wednesday after the Greek government, under pressure to pass spending laws as it grapples with a debt mountain, won a vote of confidence as expected.
The next key moment for investors will the U.S. Federal Reserve's news conference at 1815 GMT, when chairman Ben Bernanke will give his views on U.S. growth.

OIL: Oil falls on Spain concerns, spread sell off
NEW YORK, June 21 (Reuters) - Brent crude fell on Tuesday, dragged down by the sell off in the spread to U.S. crude and a warning about risks to Spain's economy that added to concerns about the euro zone.
"Crude futures fell back on the news of the IMF warning that the repair of Spain's economy is incomplete and that risks are still considerable," said Phil Flynn, analyst for PFGBest Research in Chicago.

NATURAL GAS: Natural gas ends up, first gain in seven sessions
NEW YORK, June 21 (Reuters) - U.S. natural gas futures ended higher on Tuesday in light trade, backed by warmer U.S. weather forecasts for next week and technical buying after six straight losing sessions despite comfortable supplies.
"The market's been down for more than a week, but the forecasts look a little warmer and a couple more nukes dropped out which is keeping things firm. This could be a dead cat bounce though," a Texas trader said, noting buying today was more technical than fundamental.

EURO COAL: Coal avoids big falls seen in other energy assets
LONDON, June 21 (Reuters) - European coal futures slipped on Tuesday, avoiding sharp drops seen in related energy markets but also failing to break back through important resistance markers.
"A Chinese VAT solution has been on the radar for a while, but so far there has been no announcement from officials," one source said, adding that because coal stocks at China's utilities had improved, a VAT adjustment from the government to lure more coal into the market made little sense at this point.

20110622 1019 Local & Global Economic Related News.

Malaysia: Car sales impacted by amended Act
Worried about the possibility of trickling cash flow, a rise in booking cancellations and longer lead time for completion of sales, many stakeholders in the automotive sector say the recent amendments to the Hire-Purchase Act 1967 (HPA) will hurt the car retail trade. Already, there are complaints of a slowdown in sales. Under the amendments, effective 15 June, all used vehicles for sale will undergo Puspakom’s 18-point inspection to ensure their roadworthiness. Another issue of contention was the 1% maximum booking fee (based on the total selling price) mandated by the amended Act, which requires car sellers to refund customers 90% of the booking fee if the deal falls through. (StarBiz)

Malaysia: Minimum wage bill tabled
A bill that will pave the way for the implementation of minimum wages was tabled at the Dewan Rakyat for the first and second reading yesterday. The National Wages Consultative Council Bill 2011, tabled by Deputy Human Resources Minister Datuk Maznah Mazlan, seeks to replace the Wages Council Act 1947 and set up a National Wages Consultative Council to conduct studies on minimum wage. The council will also make recommendations to the government on minimum wages according to sectors, types of employment and regions. Prime Minister Datuk Seri Najib Razak said he hoped to have the minimum wage policy in place by year-end if Parliament passed the bill. Once the bill is passed, the council can make recommendations through the minister on coverage, commencement and implementation of recommended minimum wage rates. (NST)

Greece: Papandreou wins Greek confidence vote, boosts rescue chances
Greek Prime Minister George Papandreou won a vote of confidence, bolstering his new government’s chances of pushing through austerity measures to secure further international financial aid for the country. A total of 155 lawmakers supported the motion in the 300-seat parliament in Athens early this morning, with 143 voting against, the speaker, Filippos Petsalnikos, said. Papandreou reshuffled his Cabinet and sought the approval of the chamber after fending off a revolt within his socialist Pasok party last week. After the vote, police used tear gas to disperse crowds protesting Papandreou’s budget cuts. (Bloomberg)

Germany: Investor confidence declined to two-year low in June as the region's debt crisis dimmed the economic outlook. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict developments six months in advance, fell to -9 from 3.1 in May. That's the lowest since January, 2009. (Source: Bloomberg)

U.K: Budget deficit narrowed to GBP 17.4b (USD 28.2b) in May as growth in tax receipts outpaced government spending. The shortfall compared with GBP 18.5b a year earlier, the Office for National Statistics said in London. (Source: Bloomberg)

Spain: IMF sees 'considerable' risks amid European debt crisis. The International Monetary Fund said Spain must step up efforts to reform its economy as Europe's sovereign debt crisis threatens to damp growth. "The repair of the economy is incomplete and risks are considerable," the Washington-based IMF said in its annual appraisal of Spain. There must be "no let up in the reform momentum" to bolster the recovery and reduce a 21% unemployment rate that is "unacceptably high," the fund said. (Source: Bloomberg)

US: Existing-home sales fell in May to six-month low
Sales of existing US homes decreased in May to the lowest level in six months, a sign that the housing market is lagging other parts of the economy. Purchases of existing homes fell 3.8% to a 4.81m annual pace last month, in line with the 4.8m median estimate in Bloomberg News survey of economists, data from the National Association of Realtors showed. The median sales price declined from a year earlier and 31% of transactions were of distressed dwellings. An unemployment rate hovering around 9% and tight credit standards mean it may take years to absorb the 1.8m distressed properties on the market that are weighing down home values. Persistent weakness in the housing market is one reason why Federal Reserve policy makers are likely to maintain record stimulus when they meet this week.(Bloomberg)

US stocks advance as concern about Greek debt default eases
US stocks advanced, sending the Standard & Poor’s 500 Index higher for a fourth straight day, as concern about Greece’s debt crisis eased. Wells Fargo & Co and Citigroup Inc rose at least 1.8%, following a rally in European banks, as Greece’s government faces a confidence vote that may determine whether it avoids a default. Caterpillar Inc, Alcoa Inc and Hewlett- Packard Co added more than 0.8%, pacing gains among companies most-tied to economic growth. Best Buy Co climbed 2.7% as the largest consumer electronics retailer set a USD5bn share repurchase plan and raised its quarterly dividend. The S&P 500 rose 1.3% to 1,295.52 at 4 pm in New York. The Dow Jones Industrial Average added 109.63 points, or 0.9%, to 12,190.01. The Nasdaq Composite Index gained 2.2% to 2,687.26, reversing its 2011 drop. The Russell 2000 Index of small companies increased 2.3% to 806.37. (Bloomberg)

20110622 1018 Malaysia Corporate Related News.

KLCI chart reading :
correction range bound upside biased.

MAS exercises option to buy Boeing aircraft in USD800m deal
Malaysia Airlines (MAS) has exercised an option to buy 10 additional next-generation 737-800 aircraft from Boeing, in a deal said to be worth over USD800m (RM2.43bn). The national carrier’s latest deal means it has now placed 45 firm orders for the Boeing 737-800 aircraft. Managing director and chief executive officer Tengku Azmil Zahruddin Raja Abdul Aziz said the carrier decided to exercise the option in order to meet market demand. (BT)

CMC-led team wins LRT job for system works
CMC Engineering-Colas-Uniway, a Malaysian and British group, has edged out other contenders to land a RM673.9m contract to build a light rail transit (LRT) extension after it met all of the tender conditions. The contract covers engineering, procurement, construction, testing and commissioning of system works, Syarikat Prasarana Negara Bhd said in a statement issued yesterday the Kelana Jaya LRT line will be extended by another 17km from the Kelana Jaya station to Putra Heights. It will travel through 13 new stations. (BT)

MAAH shares slump on move to sell core unit
Shares of MAA Holdings Bhd (MAAH) slumped nearly 30% after the company agreed to sell its composite unit to Zurich Insurance Co Ltd for RM344m, effectively leaving it without a core business. At the close of trading yesterday, MAAH issued a statement to Bursa Malaysia, putting a damper on investors who may hold out in anticipation of a special dividend following the announcement of the sale. However, it was not all gloomy for MAAH shareholders as the company also disclosed that it will not fall foul of the Practice Note 16 listing requirements and that it has not triggered the cash criterion to be a cash company. (BT)

Time’s offer at sharp discount weighs on TdC stock
Time DotCom Bhd’s (TdC) share price dropped sharply in the wake of parent Time Engineering Bhd’s announcement that it planned to dispose of its 24.7% stale at 53 sen, a steep 33.7% discount from market value. The sharp discount came as a surprise to the market considering the common practice of companies maximising the value of the assets. (Financial Daily)

Tradewinds Plantation to grow downstream in rubber
Tradewinds Plantation Bhd plans to grow its downstream business in the rubber industry to make the commodity a meaningful contributor to the group’s earnings. Tradewinds Plantation had proposed to acquire Mardec Bhd for RM150m in acsh from Semi Bayu Sdn Bhd in 2009. But after a due diligence, Tradewinds Plantation said the purchase price has been reduced to RM140m. CEO, Chan Seng Fatt asid Mardec’s rubber processing business on its own is already a good business. In addition, he said Tradewinds Plantation has the advantage of an upstream business as well to support its downstream venture. (Financial Daily)

Genting: Resorts World NY to open on Oct 1. As lobbying for a casino licence in Miami, Florida goes on. Genting Group is looking at opening Resorts World New York as early as Oct 1, though works are taking longer than expected due to the historic Aqueduct's aged structure. (Source: The Edge Daily)

MAHB: Secures Eurocopter as anchor tenant of Subang airport. Eurocopter Malaysia Sdn Bhd has signed the 30-year lease with an option for an additional 30years. Eurocopter is looking to build a maintenance, repair and overhaul (MRO) services facility on a 7,000 sq m plot of land in the MAHB helicopter centre in Subang. (Source: The Edge Daily)

MAS: Orders 10 more 737-800s. Malaysia Airlines (MAS) has exercised an option to buy 10 Boeing 737-800s valued at some USD800m (RM2.4b) at curret list prices. MAS still has purchase rights for an additional 10 737-800s remaining from its initial 2008 contract. (Source: The Sun)

Auto: Car sales impacted by amended Act. Stakeholders in the automotive sector say the recent amendments to the Hire-Purchase Act 1967 (HPA) will hurt the car retail trade. Some said the amended Act is confusing and overly protected consumers to the detriment of car retailers. (Source: The Star)

Mining: Vale turns focus to Malaysia. Vale SA has forgone plans to build a distribution centre in China and will focus on making Malaysia its main hub for Asian sales. Vale is investing USD1.37b (RM4.16b) to set up a maritime terminal in Malaysia with capacity to dock its Valemax vessels and handle up to 30m tonnes of iron ore a year starting in the first half of 2014. (Source: Business Times)

20110622 1014 Global Market Related News.

DJIA chart reading : correction range bound little downside biased.


Hang Seng chart reading : pullback correction downside biased.

World stocks off 3-week low, focus on Greece
LONDON, June 21 (Reuters) - World stocks and the euro rose from last week's three-week lows as expectations that the euro zone will avoid a messy default of Greek sovereign debt attracted investors back into risky assets.
Investors are awaiting a parliamentary confidence vote for Greek Prime Minister George Papandreou, a step towards the passage of more spending cuts in exchange for foreign loans.

Asian Stocks Rise a Second Day as Greece Vote Boosts Optimism (Source: Bloomberg)
Asian stocks rose, driving the region’s key index up for a second day as Greek Prime Minister George Papandreou won a parliamentary confidence vote, moving the country a step closer to avoiding a default on its debt. Sony Corp. (6758), Japan’s largest exporter of consumer electronics that gets more than 20 percent of its sales in Europe, rose 2.3 percent in Tokyo. Samsung Electronics Co., which gets a fifth of its revenue from the region, advanced 1.1 percent in Seoul. BHP Billiton Ltd. (BHP), the world’s No. 1 mining company, gained 1.8 percent in Sydney, while Rio Tinto Group, the second biggest by sales, climbed 1.9 percent.

Existing-Home Sales in U.S. Fell in May to Six-Month Low, May Be at Bottom (Source: Bloomberg)
Sales of existing U.S. homes decreased in May to the lowest level in six months, a sign that the housing market is lagging other parts of the economy. Purchases of existing homes fell 3.8 percent to a 4.81 million annual pace last month, in line with the 4.8 million median estimate in a Bloomberg News survey of economists, data from the National Association of Realtors showed today in Washington. Preliminary figures showing a jump in contract signings suggest May will prove to be the weakest sales month of the year, according to the group’s chief economist.

Fitch Says U.S. ‘Very Likely’ to Resolve Debt Ceiling Limit Before Aug. 2 (Source: Bloomberg)
Fitch Ratings said U.S. lawmakers are “very likely” to raise the debt ceiling limit before Aug. 2, even as it reiterated that failure to do so would result in the country being placed on rating watch negative. “The U.S. Treasury is saying that if the debt ceiling is not raised by Aug. 2, then they can’t guarantee that they will remain current on their obligations,” Andrew Colquhoun, head of Fitch’s Asia-Pacific Sovereigns team, said in an interview in Singapore today. “If the debt ceiling has not been raised by then, then we would put the U.S. sovereign ratings on rating watch negative. We think it’s very likely that the debt ceiling will be raised in good time.”

Bernanke May Try to Spur U.S. Economic Growth by Extending Record Stimulus (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke will probably delay the central bank’s exit from record stimulus, economists said in a survey, giving the flagging economy a boost without resorting to additional asset purchases. Seventy-nine percent of 58 economists expect Bernanke to sustain the Fed balance sheet at current levels until October or later, compared with 52 percent who held that view before the Fed’s last policy meeting in April, according to a Bloomberg News survey conducted last week. Ninety percent of those surveyed predict the Fed will wait until the fourth quarter before dropping its pledge to hold interest rates low for an “extended period.”

Gross Says U.S. Government Should Do More to Foster Job Growth: Tom Keene (Source: Bloomberg)
Bill Gross, manager of the world’s biggest bond fund at Pacific Investment Management Co., said the U.S. government must do more to support employment growth. “What we’ve been able to apply in the last 20 years is a financial based employment structure where the magic of finance and asset appreciation” generated jobs, Gross said in a radio interview on “Bloomberg Surveillance” with Tom Keene and Ken Prewitt. “That model no longer applies. We need to go back to the manufacturing roots of this country as opposed to the financial roots.”

U.S. Stock Exchanges Ask SEC to Postpone Market-Access Rules to November (Source: Bloomberg)
The four largest U.S. stock market operators asked the Securities and Exchange Commission to delay implementation of rules governing how brokers send orders to venues, which includes a ban on unsupervised market access given to some high-frequency traders. NYSE Euronext, Nasdaq OMX Group Inc. (NDAQ), Bats Global Markets and Direct Edge Holdings Inc. asked the regulator for an extension until Nov. 30 from the current deadline of July 14, according to a letter dated yesterday obtained by Bloomberg News. The Securities Industry and Financial Markets Association, a trade organization for brokers, banks and asset managers, also asked for an extension for all securities firms in April.

Japanese Stocks Rise for Third Day After Papandreou Wins Confidence Vote (Source: Bloomberg)
Japanese stocks rose for a third day after Greek Prime Minister George Papandreou won a parliamentary confidence vote that moved the country one step further from default. Sony Corp., which gets more than 20 percent of its sales in Europe, climbed 2.4 percent. Toyota Motor Corp. gained 0.3 percent after Deutsche Bank AG. raised its profit estimate for the world’s biggest carmaker. Jtekt Corp., an autoparts maker that had delayed earnings forecasts because of damage from March’s earthquake, advanced 1.9 percent after the company forecast a profit increase.

Inflation in India May Quicken on Deficient Rain (Source: Bloomberg)
Monsoon rain in India will be below normal for the second time in three years, the weather office said, potentially lowering farm output and accelerating inflation which is the highest among Asia’s major economies.

Europe Crisis Threatens Asian Exports (Source: Bloomberg)
Europe’s debt crisis and slowing U.S. growth are damping demand for exports from Asia, giving central banks a reason to slow interest-rate increases even at the risk of seeing inflation undercut domestic spending. India and Thailand’s export growth has slowed, reports showed this month. Chinese overseas shipments may stagnate this summer on “weak” U.S. expansion, Credit Suisse Group AG said.

IMF Warns of ‘Considerable’ Risks in Spain as Debt Crisis Threatens Growth (Source: Bloomberg)
The International Monetary Fund said Spain must step up efforts to reform its economy as Europe’s sovereign debt crisis threatens to damp growth. “The repair of the economy is incomplete and risks are considerable,” the Washington-based IMF said in its annual appraisal of Spain yesterday. There must be “no let up in the reform momentum” to bolster the recovery and reduce a 21 percent unemployment rate that is “unacceptably high,” the fund said.

U.K. Budget Deficit Narrows as Revenue Growth From Taxes Outpaces Spending (Source: Bloomberg)
Britain’s budget deficit narrowed to 17.4 billion pounds ($28.2 billion) in May as a jump in tax receipts outpaced growth in government spending. The shortfall compared with 18.5 billion pounds a year earlier, the Office for National Statistics said in London today. The median of 12 forecasts in a Bloomberg News survey was for a deficit of 17 billion pounds. Revenue rose 8.2 percent, boosted by January’s increase in value-added tax to 20 percent. Spending grew 2.2 percent.

German Investor Confidence Fell More Than Forecast to Two-Year Low in June (Source: Bloomberg)
Investor confidence in Germany, Europe’s largest economy, dropped to the lowest in 2 1/2 years in June as the region’s debt crisis dimmed the economic outlook. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict developments six months in advance, fell to -9 from 3.1 in May. That’s the lowest since January, 2009. Economists expected a decline to -3, according to the median of 37 estimates in a Bloomberg News survey.

Australia’s Dollar Maintains Advance After Papandreou Wins Confidence Vote (Source: Bloomberg)
Australia’s dollar held onto yesterday’s gain against its U.S. counterpart after the Greek prime minister won a confidence vote to keep his government in power, supporting demand for higher-yielding assets.    New Zealand’s dollar maintained yesterday’s 0.3 percent advance versus the greenback on speculation Federal Reserve Chairman Ben S. Bernanke and his fellow policy makers will keep their benchmark interest rate unchanged today, preserving the yield advantage of assets in the smaller country. The so-called kiwi dollar was little changed after a report showed New Zealand’s current-account deficit widened as a share of the economy after tax payments from foreigners fell.

FOREX-Euro rises before Greek vote; gains seen limited
LONDON, June 21 (Reuters) - The euro rose on Tuesday as investors bet Greek Prime Minister George Papandreou would survive a confidence vote crucial in helping the country avert a debt default.
Traders were wary of holding short euro positions going into the parliamentary vote due later in the day, and analysts saw only short-lived boost if it is passed as Greece must also vote on new austerity measures on June 28.

20110622 1011 Global Commodities Related News.

Corn (Source: CME)
US corn futures finish higher, with deferred contracts posting strongest gains on concerns about crop conditions. Traders worry output could fall short of expectations as USDA's weekly crop-progress report increased the amount of corn rated good-to-excellent and poor-to-very-poor. "People figured out it's an extremely variable crop out there," says Jack Scoville of Price Futures Group. Weakness in the US dollar and commodity fund buying of an estimated 15,000 contracts add support. CBOT December corn rises 19 3/4c at $6.80 1/4 a bushel.

Wheat (Source: CME)
US wheat futures finish stronger in a rebound from Monday's slide to 7 1/2-month lows. Weakness in the dollar helps spark gains, as it makes US grains more attractive to foreign buyers, analysts say. Poor weather adds support, with the northern Plains still too wet for growing spring wheat, they note. Drought has already reduced winter-wheat output in the southern Plains. The advancing winter-wheat harvest keeps a lid on KCBT prices. CBOT September wheat gains 9 3/4c to $7.05 1/2 a bushel; KCBT September edges up 1 1/2c to $8.21 1/2; MGE September rises 6 1/4c to $8.85 1/4.

Rice (Source: CME)
US rice futures settle slightly higher as weak US dollar and strong wheat market lift prices. Soft USD boosts the grains as it makes them more attractive to foreign buyers, while rising wheat prices support rice because both crops are global food staples. Crop threats aren't garnering too much attention, though conditions are too hot in the southern US after excessive rain hit some areas this spring, according to Price Futures Group. CBOT September rice advances 1c to $14.85 per hundredweight.

Wheat falls, trades near 6-1/2 month low; corn, soy rise
SINGAPORE, June 21 (Reuters) - Chicago wheat lost more ground to hover around a 6-1/2 month low as pressure from U.S. winter harvest and crop-friendly weather in Europe continued to weigh on the market.
"We are probably seeing some demand coming in with the dip in prices," said Abah Ofon, agricultural commodities analyst with Standard Chartered Bank in Singapore.

U.S. corn, soy ratings improve, match forecasts
CHICAGO, June 20 (Reuters) - The condition of the U.S. corn and soybean crops improved slightly during the past week, but excessive moisture threatens to derail crop development in the coming weeks.
The U.S. Agriculture Department's weekly crop progress report on Monday afternoon said that the corn crop was rated 70 percent good to excellent, matching the average of analysts' forecasts.

S.Africa's maize crop f'cast seen slightly down
JOHANNESBURG, June 21 (Reuters) - South Africa may slightly lower its May 2010-April 2011 season maize estimates as yields disappoint and heavy rains affect quality, a Reuters survey showed on Tuesday.
The average estimate of seven trading houses polled by Reuters showed that South Africa's maize output for the 2010/11 season is likely to be 10.87 million tonnes.

Italy wheat output seen down, area lower
MILAN, June 20 (Reuters) - Wheat output in Italy, a major grain buyer in Europe, is expected to fall more than 10 percent this year after a wet winter caused a considerable drop in sown areas, farmers group Coldiretti said citing official estimates.
"There will be a fall in wheat output due to smaller planted areas. There was a lot of rain (during the winter) and it was impossible to sow," Coldiretti's grains expert Paolo Abballe told Reuters on Monday.

Wheat falls, trades near 6-1/2 month low; corn, soy rise
SINGAPORE, June 21 (Reuters) - Chicago wheat lost more ground on Tuesday to hover around a 6-1/2 month low as pressure from U.S. winter harvest and crop-friendly weather in Europe continued to weigh on the market.
"We are probably seeing some demand coming in with the dip in prices," said Abah Ofon, agricultural commodities analyst with Standard Chartered Bank in Singapore.

Australia keeps 2011/12 sugar export fcast unchanged
SYDNEY, June 21 (Reuters) - Australian raw sugar exports are expected to rise 1.9 percent in the year to June 2012, in line with an earlier forecast, the government's chief commodities forecast said on Tuesday.
The Australian Bureau of Agricultural and Resource Economics (ABARES) forecast exports would rise to 2.476 million tonnes.

U.S. corn, soy ratings improve, match forecasts
CHICAGO, June 20 (Reuters) - The condition of the U.S. corn and soybean crops improved slightly during the past week, but excessive moisture threatens to derail crop development in the coming weeks.
The U.S. Agriculture Department's weekly crop progress report on Monday afternoon said that the corn crop was rated 70 percent good to excellent, matching the average of analysts' forecasts.

Ivorian rains mixed for the cocoa mid-crop-farmers
ABIDJAN, June 20 (Reuters) - Rain and sunshine in Ivory Coast's cocoa regions last week augured well for mid-crop development, but concerns remained about heavy rain in some areas damaging roads and harbouring disease, farmers said on Monday.
The correct mix of rain and sunshine is needed for cocoa to grow in this crucial stage of crop development. Too little rain and pods fail to produce enough beans. Too much and diseases like black pod can thrive and damage the harvest.

Vietnam 2011/12 coffee output seen up 10 pct-USDA
HANOI, June 21 (Reuters) - Vietnam's next 2011/2012 coffee crop could produce 20.6 million bags, up 10 percent from the previous season due to high yields and improved investment in production, a U.S. Department of Agriculture report said.
"Current high prices will motivate coffee growers and local traders to export most of their beans", which would cut the stock carried over to the next crop to 1.19 million bags, down 7.8 percent, said the report

Commodities least attractive asset class-BarCap survey
LONDON, June 20 (Reuters) - Commodities are now seen by institutional investors as the least attractive asset class, a survey carried out by Barclays Capital showed.
The Barclays Capital Global Macro Survey carried out in June canvassed views from 862 institutional investors.

China End-2010 Grain Storage Capacity 390 Million Tons (Source: CME)
China had significantly improved its grain storage facilities, with storage capacity reaching 390 million metric tons at the end of last year, up from 244 million tons in 1998, the State Administration of Grain said. Edible oil storage capacity at the end of 2010 totaled 14.08 million tons, the agency said in a statement Monday, without publishing actual grain and edible oil storage figures. By the end of 2010, the nation had 18,326 grain and edible oil storage enterprises, the statement said. A national inspection of state grains reserves in 2010 showed that 97.3% of grain stores were up to standard, it said.

India Monsoon Rains Likely Below Normal; May Not Hit Crops (Source: CME)
Monsoon rain in India will likely be slightly below normal this year but that may not affect crop output significantly as the rainfall is expected to be well distributed, top weather officials said. Rainfall in the June-September season is likely to be 95% of the 50-year average, Science and Technology Minister Pawan Kumar Bansal told reporters. That's lower than the India Meteorological Department's forecast in April of monsoon rain at 98% of the 50-year average of 89 centimeters. The department defines normal monsoon as 96% to 104% of the long-term average. The monsoon season brings about 70% of India's annual rainfall and is crucial for summer-sown crops such as rice, sugarcane, pulses, cotton and oilseeds as about 60% of the country's farmland is rain-fed. The rainfall forecast has been lowered because of weakening La Nina conditions, neutral temperatures over the Indian Ocean region and unfavorable North Atlantic pressure, said Ajit Tyagi, director general of the meteorological department.
La Nina, a weather event where surface sea temperatures across the equatorial eastern and central Pacific Ocean remain lower than normal, brought about heavy monsoon rain last year. "No adverse impact is likely on crops because the monsoon has set in on time. Rainfall is expected to be fairly well distributed," Tyagi said. This year, the monsoon entered India's mainland two to three days early from the southern state of Kerala on May 29. The seasonal rain was 11% above normal until June 20. Most regions have so far received normal or above-normal rains except the western state of Gujarat, the largest cotton producer, and the northeastern region. The monsoon's progress has now slowed and it is now two days behind the usual dates. It has advanced to half of the country and is expected to cover most regions by the first week of July, weather officials said.
The weather office also said that rainfall during July and August, which account for more than 60% of the seasonal showers, is expected to be 93% and 94% of  the 50-year average, respectively. The below-normal rainfall forecast surprised analysts and raised concerns about further prolonging India's inflationary patch, where food prices are the main culprit. Though in recent weeks food prices have slipped, poor rainfall may stoke them up again. The year-on-year inflation rate for food articles decelerated slightly to 8.96% in the week to June 4 from 9.01% in the week before. "The next two to three weeks are crucial for the crop sowing, so if the delay continues then it might have an impact on productivity and yield," said Harish Galipelli, head of research at JRG Wealth Management.
Analysts said that the figure of 95% rainfall expected this year isn't alarming, but the monsoon's behavior during the crucial month of July holds the key to output of summer crops including rice as most of the plantings take place during the month. The slight delay in monsoon's progress to India's northern regions will be partly cushioned by good irrigation facilities in the region, said Madan Sabnavis, chief economist at Care Ratings. Northern India is known as the country's grain-bowl region, and the seasonal rainfall has so far touched only its peripheral parts in Uttar Pradesh state. India, the world's second-largest producer of wheat and rice, produced a record 235.9 million tons of foodgrains in the crop year through June, largely because of normal monsoon rain. The government has set its sight on achieving a higher foodgrain output of 240 million tons but it may miss the target if rains are erratic, analysts said.

Australia Forecasts Record 2011-12 Commodity Exports Of A$256.35 Bln (Source: CME)
Australia remains locked in a once-in-a-lifetime commodity boom fueled by demand from China and India, with sharp increases in shipments of minerals and energy set to send exports soaring again next fiscal year, according to official estimates. The Australian Bureau of Agricultural and Resource Economics and Sciences, the government's chief commodities forecaster, in a quarterly outlook publication forecast commodity exports to surge 18% to A$256.35 billion in the year starting July 1. This is 5.1% higher than Abares's previous estimate in March. Exports leapt 27% this year. Australia is a major global supplier of many mineral, energy and farm commodities--mining accounts for around a tenth of its economy. Minerals and energy products comprised two thirds of total merchandise exports and over half of goods and services exports this year.
Shipments of mineral resources, which include energy metals and other mineral products, will likely rise 20% to A$218.33 billion next year, Abares said, a 1.7% increase from  its previous estimate. "Forecast increases in export prices and shipments for Australian iron ore and metallurgical coal are the main reasons for the expected increase in mineral resource exports," while exports of thermal coal, gold and alumina will likely also be strong, Abares acting Deputy Executive Director Kim Ritman said. Exports of farm products will rise 6.6% to A$34.12 billion next year, after jumping 12% this year, Abares said. The increases reflect higher farm production and a favorable outlook for agricultural prices on world markets, it said.

World Bank Pres: G20 Global Stocks Plan "Not Best Policy" (Source: CME)
Hopes for new measures to address food security took a further hit when the president of the World Bank said he expected key policies to be delayed or abandoned at a meeting of Group of 20 nations agriculture ministers this week. Robert B. Zoellick told reporters on a conference call he thought proposals to create an international network of food stocks was probably "not the best policy" and that would "have a hard time through the international politics" of the G20. U.S. officials have signalled their resistance to plans for the creation of regional food caches for emergency use--one step suggested for use by G20 countries to alleviate hunger in the developing world. Zoellick also warned that the policy could concern farmers who fear "that it would be used to control prices with releases." Officials are in Paris Wednesday and Thursday to wrangle a deal on how to address unprecedented volatility in food prices.
France, which has the presidency of the G20 this year, has been pushing hard to address issues of food security after prices surged to record highs in February. Key to this is increasing the regulation of investments by speculative investors in commodity markets, which French president Nicolas Sarkozy blames for much of the spike, through imposing position limits or a minimum cash deposit for commodity derivative transactions. But Zoellick said he thought such issues would be left for finance ministers to deal with later in the year. "On issues like position limits the G20 is going to rely on the financial groups to have more discussion about regulatory policy for futures and derivatives," he said. Ministers are, however, expected to announce the launch 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 by providing regular updates on global food stocks and production.
Yet even this is expected to come up against resistance. Economists said it could be hard to get countries such as China--a large food importer--to contribute data that might give away their trade strategies. Russia is also said to be against controls on government intervention in markets which would stop a repeat of the embargo it imposed on grain exports last summer--a factor blamed for sparking the surge in food prices. Zoellick said he also expects "resistance from major agricultural producers to giving up the option of export bans as a tool."

World Bank Launches $4B Food Price Hedging Tool (Source: CME)
Farmers and consumers in the developing world will be able to access up to $4 billion in protection against sharp swings in food prices, under plans announced by the World Bank. The facility will be run by the group's private arm, the International Finance Corporation, in partnership with J.P. Morgan to allow producers, cooperatives and banks to hedge their risk exposure in agricultural markets. The launch comes as agriculture ministers from the Group of 20 developed and developing nations are due to meet in Paris this week to wrangle a deal on how to address unprecedented volatility in food prices. Proposals include improving transparency in physical and futures markets, building stocks to damp price swings and developing risk management tools for the most vulnerable. "This can show how financial instruments can bring security for millions of farmers and producers and consumers," said World Bank Group President Robert B. Zoellick on a conference call.
World food prices hit a record high in February, according to the United Nations, and in a report published last week the body forecast that food prices may be on average up to 30% higher over the next decade as slowing production growth fails to keep pace with rapidly expanding demand. Charities warn that the number of chronically hungry people is likely to rise above 1 billion this year due to the rising cost of living. World food output will have to rise 70% by 2050 to feed a forecast population of more than 9 billion people, according to the U.N. "High, uncertain and volatile food prices are the single gravest threat facing the most vulnerable in the developing world," said Zoellick. Under the debut facility--the Agriculture Price Risk Management tool--IFC will commit up to $200 million in credit exposure to clients that use specific price hedging products, which will be at least matched by J.P. Morgan. The World Bank expects these combined credit exposures to make up to $4 billion available.
The facility is particularly important as smaller emerging market producers and consumers often find it hard to access the sophisticated hedging devices available to producers and consumers in the developing world. Zoellick said the World Bank is in talks to expand the scheme with other banks.

Citi hiring spree focuses on Asia-commodities head
LONDON, June 21 (Reuters) - Citigroup  is reviving its commodities role with a big hiring drive and tougher regulation in Europe and the United States means the focus will be on Asia, its global commodities head told Reuters.
Citi is finding it hard to attract staff to London because of high taxes, uncertainty on regulation and a general atmosphere of distrust of banks, Stuart Staley, Citi's global head of commodities, said at the bank's London head office.

Century of Hunger Is Warning From France as Farm Ministers From G-20 Meet (Source: Bloomberg)
World leaders risk making this “the century of hunger” unless they can agree to new rules on food supply, French Agriculture Minister Bruno Le Maire said before a meeting of Group of 20 farm ministers in Paris today. France, which holds the G-20 presidency, wants a central database on crops, limits on export bans, international market regulation, emergency stockpiles and a plan to raise global output. The ministers will most likely balk at the proposal on trade restrictions, said Robert Carlson, international relations director at the Washington-based National Farmers Union.

ICE sugar steady near 2-1/2-month high; coffee firms
LONDON, June 21 (Reuters) - ICE raw sugar futures were steady and traded below a 2-1/2-month peak in early trading on Tuesday, while arabica futures consolidated above a five-month low, pressured by a large
harvest in Brazil. Raw sugar futures on ICE traded below 2-1/2-month highs, underpinned by a softer dollar.

Vietnam 2011/12 coffee output seen up 10 pct-USDA
HANOI, June 21 (Reuters) - Vietnam's next 2011/2012 coffee crop could produce 20.6 million bags, up 10 percent from the previous season due to high yields and improved investment in production, a U.S. Department of Agriculture report said.
"Current high prices will motivate coffee growers and local traders to export most of their beans", which would cut the stock carried over to the next crop to 1.19 million bags, down 7.8 percent, said the report on Monday.

Australia keeps 2011/12 sugar export fcast unchanged
SYDNEY, June 21 (Reuters) - Australian raw sugar exports are expected to rise 1.9 percent in the year to June 2012, in line with an earlier forecast, the government's chief commodities forecast said on Tuesday.
The Australian Bureau of Agricultural and Resource Economics (ABARES) forecast exports would rise to 2.476 million tonnes.

Ivorian rains mixed for the cocoa mid-crop-farmers
ABIDJAN, June 20 (Reuters) - Rain and sunshine in Ivory Coast's cocoa regions last week augured well for mid-crop development, but concerns remained about heavy rain in some areas damaging roads and harbouring disease, farmers said on Monday.
The correct mix of rain and sunshine is needed for cocoa to grow in this crucial stage of crop development. Too little rain and pods fail to produce enough beans. Too much and diseases like black pod can thrive and
damage the harvest.

Ivorian cocoa arrivals seen 15 pct over yr-ago
ABIDJAN, June 20 (Reuters) - Ivory Coast cocoa output is running about 15 percent over last year and the industry is on track to beat a 1.3 million-tonne target for the season, exporters said on Monday.
The outlook is good news for the world's top cocoa grower, which is recovering from a months-long post-election power struggle that killed thousands and brought the economy to its knees before easing in April.

Brazil coffee zones set for dry warm week
BRASILIA, June 20 (Reuters) - Brazil's main coffee zones were set for another dry week with warm frost-free nights, forecaster Somar predicted Monday, providing ideal conditions to dry out the harvested produce and maximize quality.
Not a single millimeter of rain was forecast for the next five days in any of the 11 coffee regions Somar monitors, while the lowest temperature expected anywhere was 8 degrees Celsius, in the hilly Pocos de Caldas region which is one of the coolest coffee areas.

Oil Declines as Greece Still Faces Debt Challenges, OPEC Supply Increases (Source: Bloomberg)
Oil declined in New York as investors bet Greek Prime Minister George Papandreou’s victory in parliament won’t be enough to solve the country’s debt crisis, which threatens Europe’s economy and fuel demand. Futures slipped as much as 0.7 percent today after Papandreou won the support of 155 out of 300 lawmakers in a confidence vote in Athens. He still has to pass 78 billion euros ($112 billion) in budget cuts to stave off the threat of default. The International Energy Agency said Saudi Arabian oil production may be rising and JPMorgan Chase & Co. said output by the United Arab Emirates and Kuwait is increasing.

Brent crude falls as low as $111.11 as spread to WTI narrows
SINGAPORE, June 21 (Reuters) - Brent slipped on Tuesday on continued uncertainty over the Greek debt crisis, narrowing its premium to U.S. crude futures which rose on bargain hunting after losses in the previous session.
"The premium for Brent had just gone too high," said Ken Hasegawa, a commodity derivatives manager at Japan's Newedge brokerage. "That is why we are seeing the correction. Also, the market is very cautious because of the Greek debt issue."

Australia cuts coal export forecast, risk of further downgrade
SYDNEY, June 21 (Reuters) - Australia cut production and export forecasts for its huge coal-mining industry on Tuesday, reflecting growing concerns that the world's biggest supplier of steel-making coal could take another six months to bounce back from recent floods.
Coal is Australia's top export earner and flood and cyclone damage to the industry contributed to the country's biggest contraction in GDP for 20 year in the first quarter.

Copper Rises From Three-Week Low as Concern About Greek Debt Default Eases (Source: Bloomberg)
Copper rebounded from a three-week low as concern eased that Greece will default on its debt, boosting the outlook for commodity demand. The MSCI World Index of equities gained as much as 1.7 percent as renewed confidence in Greece buoyed the prospects for global growth. The Thomson Reuters/Jefferies CRB Index of 19 raw materials climbed for the second straight day.

Chinese aluminium output cranks up another gear
LONDON, June 14 (Reuters) - Rising Chinese power prices and the well-flagged potential for power rationing over the summer peak demand season have injected some bullish impetus into the aluminium market recently.
After all, aluminium smelters are some of the most intensive industrial users of electricity and are an obvious target if Beijing orders households to be prioritized over industry in the event of a summer power crunch.

India's NALCO issues 6,000 T aluminium export tender-source
BHUBANESWAR, India, June 21 (Reuters) - India's state-run National Aluminium Co. Ltd (NALCO)  has issued a tender to export 6,000 tonnes of aluminium ingots, a senior company official said on Tuesday.
The last date for submission of bids is June 28, the official, who is close to the tendering process but could not be named due to company policy, told Reuters.

Quake hits Chile's mining north, no damage reported
SANTIAGO, June 20 (Reuters) - A 6.3 magnitude earthquake struck copper-rich northern Chile on Monday, but there were no reports of damage at major mines and authorities reported no injuries or risk of tsunami.
State miner Codelco the world's top copper producer, said its Chuquicamata, Radomiro Tomic and Al Abra mines were operating normally after the quake. Teck Resources  also reported no impact at its Quebrada Blanca mine.

Luvata plans India cold chain expansion
LONDON, June 21 (Reuters) - Luvata is planning an expansion in India to help meet rapid growth in the food refrigeration market, the international copper product maker said on Tuesday.
The company expects a first large production facility aimed at the domestic market to be ready next year.

Indonesia offers part of Newmont mine stake to local govt
JAKARTA, June 21 (Reuters) - Indonesia's central government is offering a quarter of its 7 percent stake in the local unit of Newmont Mining Corp  to the regional government where the company's copper and gold mine is located, the finance minister said on Tuesday.
Finance Minister Agus Martowardojo has come under pressure from parliament over the central government's purchase of the 7 percent stake, so the offer looks like a move to get lawmakers off his back and close a long-running saga over the mine's ownership.

China leads global steel production down in May
LONDON, June 20 (Reuters) - Global crude steel production dropped for the first time in three months in May from April as top producer China tried to tackle overcapacity after the government implemented credit tightening measures.
Global steel production slipped to 4.189 million tonnes a day in May from 4.231 million in April, World Steel Association figures showed on Monday.

METALS-Copper egdes up; focus on Greece crisis
LONDON, June 21 (Reuters) - Copper edged up on Tuesday as the dollar fell against the euro with investors betting European leaders will cobble together a deal to prevent Greece from defaulting but concerns about demand prospects remained.
Benchmark copper on the London Metal Exchange  was up to $9,045.50 a tonne by 0936 GMT, paring losses after falling nearly 1 percent to $9,005 in the last session.

Copper up; Greek confidence vote and Fed decision eyed
SHANGHAI, June 21 (Reuters) - London copper ticked up on Tuesday in cautious range-bound trading on a weaker dollar as the euro rose on hopes that European policymakers would try to avoid a hard landing for the economy of heavily indebted Greece.
"Each day copper has been trading in limited ranges. We are waiting for more leads out of Europe in terms of the Greek concerns and what may come out of the FOMC meeting on interest rates later in the week," said Commodity Broking Services managing director Jonathan Barratt. 

PRECIOUS-Gold rises as investors spooked by Greek debt
LONDON, June 21 (Reuters) - Gold prices rose on Tuesday as investors spooked by talk of a Greek debt default and contagion to other euro zone countries sought safety while a softer dollar also helped.
Spot gold  was bid at $1,544.10 a troy ounce at 1126 GMT compared with $1,539.95 late in New York on Monday when it touched $1,545.90, its highest since June 9.

Gold ticks up near 2-week high; Greek crisis brews
SINGAPORE, June 21 (Reuters) - Gold edged up on Tuesday and held near its highest in two weeks, with no quick end in sight to economic turmoil in Europe after Greece was told to approve a new austerity package to avoid defaulting on its debt.
"We're still not seeing that huge flight-to-safety that is really needed for the sovereign debt crisis to actually propel gold higher," said a dealer in Singapore.

20110622 1009 Soy Oil & Palm Oil Related News.

Soy Oil chart reading : pullback correction downside biased

Reuters: Indonesia government to lift July 2011 palm oil export tax to 20%

Soybeans (Source: CME)
US soybean futures rallied, driven by broader based gains. Weakness in the US dollar and outlooks for a resolution of the Greek sovereign debt crisis increased investors' appetite for riskier commodities, notes Mike Zuzolo, president Global Commodity Analytics. Forecasts calling for an extended hot, dry pattern in the Midwest in July encouraged traders to add some premium back into prices as well, Zuzolo adds. Signs of some deteriorating crop conditions in individual states reported by USDA yesterday helped buoy prices as well. CBOT Nov soy ended up 1.1% at $13.49 3/4/bushel.

Soybean Meal/Oil (Source: CME)
Soy product futures climb in unison with soybeans, feeding off the supportive tone in external commodity and currency markets. Ongoing concerns about tight soy supplies and the uncertainty of new crop production of soybeans helped buoy soyoil and soymeal futures, analysts said. CBOT Dec soyoil settled up 1% at 57.95cents/lb; July soymeal ended up 0.5% at $351.70/short ton.

Palm oil rises as investors eye demand uptick
JAKARTA, June 21 (Reuters) - Malaysian palm oil futures rose as firmer comparative vegetable oils and improving short-term demand expectations supported prices.
"We will see increased buying from some countries ahead of Ramadan," said on analyst. "That is quite positive.

Malaysia's 2011 palm oil exports may breach record-paper
KUALA LUMPUR, June 21 (Reuters) - Malaysia's palm oil exports this year may surpass the record 65 billion ringgit ($21.4 billion) achieved in 2008, thanks to higher prices of the commodity and better global demand, the Business Times newspaper reported on Tuesday.
Palm oil exports in the first five months of this year totalled 30.49 billion ringgit, according to industry body Malaysian Palm Oil Board, the paper said.

China grains, edible oil storage capacity expanded - report
BEIJING, June 21 (Reuters) - China has increased its grains and edible oils storage capacity to enable the government to control food price rises and cover deficits in years of poor harvests, the People's Daily reported on Tuesday.
State grain storage capacity had reached 390 million tonnes by the end of 2010, representing about 70 percent of annual domestic consumption, Zeng Liying, deputy head of the State Administration of Grain, was cited as saying in the report.

20110622 0922 FCPO EOD Daily Chart Study. (21 Jun 2011)

 FCPO closed : 3221, changed : +28 points, volume : lower.
Bollinger band reading : pullback correction downside biased.
MACD Histrogram : recovering, seller take profit.
Support : 3200, 3150, 3100, 3070 level.
Resistance : 3250, 3270, 3300, 3350 level.
Comment :
Quiet market FCPO closed recorded small gain with lower volume transacted while overnight soy oil closed little higher.
Daily chart formed a doji bar candle positioned between middle and lower Bollinger band level.
Technical reading suggesting a pullback correction downside biased market development possibly testing higher 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.

20110622 0902 FKLI EOD Daily Chart Study (21 Jun 2011).


FKLI closed : 1564.5 changed : +4 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : recovering, buyer in advantage as seller leaving.
Support : 1550, 1540, 1530, 1515 level.
Resistance : 1565, 1580, 1590, 1600 level.
Comment :
FKLI closed recorded gain with improved volume traded doing 3.5 points premium compare to cash market while Asia and Europe trading mostly higher and overnight U.S. market continue to closed firmer.
Most regional markets trading in technical rebound mode today.
Daily chart formed an up doji bar candle with long lower shadow positioned near upper Bollinger band level.
Technical chart reading suggesting a upside biased market development testing higher resistance level with MACD indicator having positive cross up.
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.