Friday, June 24, 2011

20110624 1808 FCPO EOD Daily Chart Study.

FCPO closed : 3117, changed : -19 points, volume : higher.
Bollinger band reading : downside biased.
MACD Histrogram : falling, seller in charge.
Support : 3100, 3070, 3050, 3020 level.
Resistance : 3150, 3200, 3250, 3270 level.
Comment :
FCPO closed recorded loss for the third day with higher volume exchanged while overnight soy oil closed lower and currently rebounding little higher.
Price hit new 7 month low but managed to recovered small portion of intraday losses ahead of next Monday export data.
Daily chart formed a down doji bar candle with longer lower shadow closed nearer to lower Bollinger band after market opened and tested higher near resistance level and moved side way followed by after lunch session fall tested near support level recovered upwards to closed off the low of the day.
Chart reading still suggesting a further downside biased market development testing support and resistance.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with larger cut loss and profit target.

20110624 1732 FKLI EOD Daily Chart Study.

FKLI closed : 1569.5 changed : +6.5 points, volume : lower.
Bollinger band reading : upside biased with possible pullback correction.
MACD Histrogram : rising higher, buyer in control.
Support : 1565, 1550, 1540, 1530 level.
Resistance : 1580, 1590, 1600, 1610 level.
Comment :
FKLI closed recorded gain with shrinking volume transacted doing 4.5 points premium compare to cash market that closed recorded marginal gain while Asia markets closed higher and European markets currently trading in positive zone with overnight U.S. market closed weaker.
News wise, China's Premier Wen speech on effort to stem China inflation have seen result and The International Energy Agency's (IEA) decision to release 60 million barrels of crude oil from strategic reserves seems welcomed by the market.
Daily chart formed an up bar candle closed little above upper Bollinger band level after market opened 1 tick higher, edge upward slowly followed by last hour push resulted price to closed near the high of the day.  
Technical reading suggesting pullback correction upside biased market development possibly testing lower support near middle Bollinger band.
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.

20110624 1552 Global Market & Commodities Related News.

Asian stocks set for first weekly gains in two months
HONG KONG, June 24 (Reuters) - Asian equities are poised for their first weekly gains in nine weeks and the euro advanced from early lows on Friday, though the currency's gains could be short lived as many see Greece's deal with international lenders as a short-term fix for a long-term crisis.
"Although the effect from the Greece news may be temporary, investors are relieved," said Yumi Nishimura, a senior market analyst at Daiwa Securities.

U.S. corn gains for 2nd day, soy rebounds on Greece news
SINGAPORE, June 24 (Reuters) - U.S. corn futures rose more than 1 percent on Friday, extending previous session's gains, while soybeans bounced back amid a broad-based strength in commodities following Greece's deal with international lenders for a new austerity plan.
"It's a rebound after sharp drop as people are buying on the dip with external factors such as the Greece deal supporting the grain markets," said Ker Chung Yang, analyst at Phillip Futures in Singapore.

Urbanites get $394 Mln of US crop subsidies-report
WASHINGTON, June 23 (Reuters) - Some 90,000 people living in U.S. cities pocketed $394 million in U.S. farm subsidies last year, an environmental group said on Thursday, questioning why absentee owners and investors deserve the cash.
The Environmental Working Group released the data just before a Senate committee review of Agriculture Department spending and while lawmakers try to rein in federal spending.

Rains could reduce Argentina's wheat area-exchange
BUENOS AIRES, June 23 (Reuters) - The heavy rains that have slowed the planting of 2011/12 wheat in Argentina could cause a reduction in wheat area for the season, the Buenos Aires Grains Exchange said on Thursday.
The exchange has estimated that farmers will seed 4.95 million hectares of 2011/12 wheat while the government expects 4.7 million hectares.

US Grain Exports-Corn sales sink 40 pct on tepid demand
CHICAGO, June 23 (Reuters) - U.S. corn export sales fell 40 percent last week even as prices spiraled lower as stiff competition from cheaper alternative grains such as feed wheat restricted demand, analysts said.
As prices plunged further this week, U.S. corn appeared to be clawing back some, but not all, of the demand that evaporated when futures soared to nearly $8 a bushel earlier this month, analysts said following Thursday's U.S. Agriculture Department weekly export sales report.

Northern US crops to see more rain, flooding
CHICAGO, June 23 (Reuters) - The northern U.S. Corn Belt will stay wet keeping crop development slow and add more water to flooded rivers while the southern belt will turn hotter and drier, boosting plant growth, said a forecaster on Thursday.
"There are indications that a high-pressure ridge is building across much of the southern United States. It could poke its way into the southern Midwest which could be positive -- increase growing degree day units to move this crop along," said Telvent DTN forecast Mike Palmerino referring to corn, soybean and spring wheat plants.

IEA targets oil speculators: John Kemp
LONDON, June 23 (Reuters) - The International Energy Agency's (IEA) decision to release 60 million barrels of crude oil from strategic reserves is intended to drive speculators out of the market and resist the formation of a bubble by breaking expectations about near-term supply shortages, rather than target OPEC.
While the intervention will be intensely controversial, especially in the industry and among hedge funds and others running long positions in crude futures and options, it can be presented as a relatively limited move in response to fears about a shortage of specific grades of crude over a short time window, smoothing the process of adjustment.

Oil rebounds as markets await IEA emergency stocks
SINGAPORE, June 24 (Reuters) - Brent crude rebounded to $108 from a four-month low on Friday as traders gauged how much supply would reach the market from an IEA-coordinated release of emergency oil stockpiles.
"I don't think the fundamental game has changed too much, and given the big drop we saw yesterday, some marketers are fearing the same and buying on the weakness," Westmore said.

Industrial nations tap oil reserves to boost growth
PARIS/WASHINGTON, June 23 (Reuters) - Industrialized nations agreed to release oil from emergency stockpiles for the third time in history, sending crude prices tumbling and providing some support to a faltering global economy.
The unexpected decision to release 60 million barrels over the next month, the culmination of a plan that President Barack Obama put in motion more than a month ago, showed the deepening concern among Western leaders over the damage of high energy costs to a worsening global economy.

Copper gains on Greek austerity deal, oil reserves release
SHANGHAI, June 24 (Reuters) - Copper edged up on Friday on news that Greece had reached a deal with international lenders for a five-year austerity plan and industrialised countries had tapped oil reserves to stimulate global growth.                
"There are two things moving the base metals markets today. First, there is slight relief at what has happened out of Greece. But the problems there are by no means out of the way yet," managing director of Commodity Broking Services, Jonathon Barratt.

Europe copper premiums within range, eyes on China
LONDON, June 23 (Reuters) - European copper premiums nudged higher from earlier this month but remained within their recent range with traders saying the market would remain quiet as the summer season takes hold.
The premium for copper in Rotterdam , paid above the London Metal Exchange (LME) cash price , was around $85-90 a tonne from $75-85 in early June, traders said.

Gold steady after slide, sees worst week since May rout
SINGAPORE, June 24 (Reuters) - Gold steadied on Friday after falling as much as 2 percent in the previous session, supported by a softer dollar as the euro strengthened after Greece won approval for a five-year austerity plan.
"We still are in very uncertain times and it's likely to continue until we see greater signs of economic growth globally, particularly in the United States, and we start to see the European debt situation ease," said Darren Heathcote, head of trading at Investec Australia.

20110624 1128 Global Market & Commodities Related News.

GLOBAL MARKETS: Euro, stocks up on Greece news; sentiment wary
HONG KONG, June 24 (Reuters) - The euro advanced from early lows and stocks inched higher in early Asian trade on Friday as Greece's deal with international lenders for a new austerity plan offered investors a rare piece of good news in a week filled with gloomy economic data.
Crude oil, which had plunged to a four-month low after the world's top consumers unexpectedly released emergency oil reserves for the third time ever, rebounded on news from Greece.

OIL: Oil rebounds after slide on IEA emergency stocks release
SINGAPORE, June 24 (Reuters) - Oil bounced back more than a dollar on Friday after slumping in the previous session on news the world's top consumers released emergency oil reserves for only the third time ever.
The International Energy Agency announced on Thursday it would inject 60 million barrels of government-held stocks into the global market, immediately increasing world supply by some 2.5 percent for the next month and sending prices spiralling down, with U.S. crude prices erasing all of the year's gains.

NATURAL GAS: Natural gas ends down 3 pct, front tests key support
NEW YORK, June 23 (Reuters) - U.S. natural gas futures ended sharply lower on Thursday, with the front-month contract diving to a five-week low and testing key support after a government report showed a weekly inventory build well above market expectations.
"It was a surprisingly bearish (EIA build) number and shows how loose the fundamentals are beneath it all. The economy still looks weak, and the weather looks warm but nothing extreme," a Massachusetts-based trader said.

EURO COAL: Prices dip 50c to $1/T with oil steep fall
LONDON, June 23 (Reuters) - Prompt physical coal values softened by around 50 cents to $1.00 a tonne on Thursday in a limited reaction to oil's $8 a barrel price dive, traders and utilities said.
"Coal swaps for both API2 and API4 did fall but it was a marginal reaction considering the extent oil dropped," one European trader said.

Australia not participating in IEA oil reserve release
CANBERRA, June 24 (Reuters) - Australia is not participating in the coordinated release of 60 million barrels of oil by developed countries announced by the International Energy Agency, the government said on Friday.
"Australia is not participating and not all IEA countries are," Australia's Energy Minister Martin Ferguson said.

Japan says to relax oil reserve requirements from June 27
TOKYO, June 24 (Reuters) - Japan will tap its emergency petroleum stockpile as part of global efforts to bolster tightening oil supplies, trade minister Banri Kaieda said on Friday.
Kaieda said the trade ministry has decided to relax refiners' oil reserve requirements by three days to 67 days' worth and that the lower requirements will take effect for one month from June 27.

JP Morgan, Goldman, cut oil price forecasts after IEA
SINGAPORE, June 24 (Reuters) -  Bankers J.P. Morgan and Goldman Sachs slashed forecasts for crude prices in the third quarter after the International Energy Agency announced the release of 60 million barrels of oil next month to shore up the economic recovery.
J.P. Morgan cut its average forecast for Brent crude to $100 a barrel in the third quarter, down from its previous projection of $130. Goldman Sachs , one of the most influential banks in commodities, expects Brent prices to fall to $105-$107 a barrel by the end of July.

S.Korea to offer 3.46 mln bbls oil as part of IEA stock release
SEOUL, June 24 (Reuters) - South Korea will offer 3.46 million barrels of crude and oil products from strategic stocks as part of a coordinated release of fuel by developed countries, a spokesman for state-run Korean National Oil Corp (KNOC) said on Friday.
"As a member of the IEA, we were given our quota," KNOC spokesman Han Kwang-Yeol told Reuters. "It's about 5.8 percent of the total IEA release."

Obama's oil reserves plan took shape in May-official
WASHINGTON, June 23 (Reuters) - The plan to tap U.S. emergency oil reserves had been under way for nearly two months, but President Barack Obama held off in order to consult with other consuming nations and key OPEC producers, an administration official told Reuters on Thursday.
A pivotal point in the plan that culminated with a global stock release on Thursday occurred on May 2, the same day that U.S. oil prices peaked at nearly $115 a barrel. Obama's top advisors laid out an option for tapping the reserves, which had been discussed in more general terms for several months.

Bids for 30 mln barrels of SPR oil due by June 29
WASHINGTON, June 23 (Reuters) - The U.S. Energy Department said on Thursday that companies must submit their bids by June 29 for purchasing 30 million barrels of oil from the Strategic Petroleum Reserve.
The United States said it would supply half of a planned 60 million-barrel emergency release of crude oil from members of the International Energy Agency, in a bid to cover supplies lost from Libya during the peak demand summer driving season.

Argentine oil output hit by storage plant blockade
BUENOS AIRES, June 23 (Reuters) - A blockade by oil workers at a crude storage plant in southern Argentina is preventing the normalization of output despite teachers' decision to lift weeks-old roadblocks, industry sources said on Thursday.
The striking teachers have lifted their pickets over the last week, but energy sector workers are still blocking access to a key storage facility in the Las Heras district.

20110624 1027 Malaysia Corporate Related News.

KLCI chart reading :
correction range bound upside biased.

CIMB, Maybank drop merger talks
The country's two largest banks, Malayan Banking Bhd (Maybank) and CIMB Group Holdings Bhd, have each aborted plans to pursue a takeover of RHB Capital Bhd (RHBCap), a move sources said was due to concerns about pricing. Abu Dhabi Commercial Bank's (ADCB) move last Friday in selling its 25% stake in RHBCap to sister company Aabar Investments at a hefty RM10.80 a share had set the valuation bar too high. At RM10.80, or 2.25 times RHBCap's book value, it was an almost 11% premium over its share price of RM9.75 last Friday. CIMB and Maybank, which had separately been looking to do a deal involving share swaps, had each indicated that they would not overpay for RHBCap as it was not vital for their growth plans.(BT)

Lion seeks foreign partner for steel ops
The Lion group is expected to consolidate its steel business soon, in order to pave the way for the entry of a foreign strategic partner to help grow its steel operations, sources said. It is learnt that the Lion group has started meeting steel players from various countries, including China‟s Baosteel Group, which have shown interest in its steel operations. “The talks are still in the preliminary stage, no decision has been made yet. The foreign partner will eventually participate in the entire steel business,” the source told The Edge Financial Daily yesterday. “It is not that they (the Lion group) want to sell out of the steel business.” Bloomberg, meanwhile, reported that Baosteel Group, the world‟s third largest steel producer by output, is in talks with Lion group to acquire a stake in Amsteel Mills SB. The report, quoting two people familiar with the matter, indicated that the size of the Amsteel stake to be acquired by Baosteel has yet to be finalised. (Financial Daily)

AirAsia places firm order for 200 A320 Airbus aircraft
Airasia Bhd placed a firm order with Airbus for 200 A320 Neo aircraft, which is the largest order for the aircraft manufacturer. Altogether, AirAsia has now placed firm orders for 375 A320 family aircraft, with 89 already in service on the carrier's fast-growing pan-Asian network. In addition, the carrier's long haul affiliate AirAsia X is also an all-Airbus customer having placed orders for 38 widebody aircraft. The order for the 200 aircraft makes AirAsia the biggest airline customer for the Airbus single aisle product line worldwide. Its A320 Neo aircraft will be powered by CFM International‟s new LEAP-X engines. AirAsia group chief executive officer Tan Sri Tony Fernandes said on Thursday, 23 June with this historic deal, AirAsia had secured its future with the ability to meet the huge growth potential offered by the Asian market. (Financial Daily)

Masteel to invest RM100m on new rolling mill
Malaysia Steel Works (KL) Bhd (Masteel) plans to invest RM100m in a new rolling mill to tap into the expected rise in demand for steel products in the country. Its managing director Datuk Seri Tai Hean Leng said the new rolling mill will have an annual production capacity of 180,000 tonnes. The plant will be adjoining the group's existing melt shop at Bukit Raja, Klang, Selangor, making it a fully-integrated steel milling facility. Masteel currently has a meltshop with an annual capacity of 550,000 tonnes at Bukit Raja producing upstream billets, and a rolling mill at Petaling Jaya that produces 350,000 tonnes of downstream steel bars. (BT)

UMW's O&G division’s earnings have to stabilise first before listing
UMW Holdings Bhd will list its oil and gas (O&G) division only when the division's earnings are stable enough to make it attractive to investors, said president and group chief executive officer Datuk Syed Hisham Syed Wazir. He said the O&G unit, which had already obtained approval to be listed from the Securities Commission (SC), would return to the black this financial year ending 31 Dec, 2011. The group had delayed the listing of its O&G unit a few times since it received the SC's approval in 2008. Previous news reports said the company was waiting for the right time and value before listing the division. (StarBiz)

Eversendai fixes prices for IPO
Eversendai Corp Bhd has fixed its retail price under its initial public offering (IPO) exercise at RM1.62 per share and institutional price at RM1.70 per share. The prices were fixed following the completion of its bookbuilding exercise for the institutional portion. It is to be listed on the Main Market of Bursa Malaysia on 1 July. The IPO involves 232.19m shares, of which there will be a public issue of 160.7m new shares and an offer for sale of 71.49m existing shares, it told Bursa Malaysia yesterday. (StarBiz)

Bernas: RM250m for 2011 capex. Padiberas Nasional Bhd (Bernas) has budgeted RM250m for capital expenditure this year including RM100m for possible acquisitions as it seeks to strengthen its grip across the entire value chain in the food staple business. (Source: The Sun)

UMW: Plans bigger O&G IPO. UMW Holdings Bhd has not lost sight of listing its oil and gas (O&G) unit, and is instead seeking to make the initial public offering (IPO) bigger than planned. However, the group did not give a timeline for the IPO. It is optimistic that its O&G division will make a turnaround this financial year with its NAGA2 and NAGA3 rigs having secured drilling jobs. (Source: Business Times & The Edge Daily)

Auto: Perodua sees rising contribution from export sales. Perusahaan Otomobil Kedua Sdn Bhd (Perodua) expects the contribution of its international sales to total group sales to increase to 10% by 2015 from just 3% presently. It recorded a 300% increase in sales this year compared to last year in Sri Lanka. (Source: The Sun)

20110624 1028 Global Economic Related News.

Singapore: Consumer prices rise 4.5% in May
Singapore‟s inflation exceeded economists‟ estimates in May as food and transportation costs increased, supporting the central bank‟s decision to allow the currency to rise further. The consumer price index rose 4.5% last month from a year earlier, matching April‟s previously reported gain, the Department of Statistics said in a statement yesterday. Asian central banks from China to Thailand and India have raised interest rates or allowed their currencies to gain this year to curb price pressures as oil and food costs rise. (Bloomberg)

India: Food inflation accelerates to two-month high
India‟s food inflation accelerated to a two-month high, adding pressure on the central bank to increase interest rates further. An index measuring wholesale prices of agricultural products rose 9.13% in the week ended 11 June from a year earlier, the commerce ministry said in a statement in New Delhi yesterday. It gained 8.96% the previous week. Prime Minister Manmohan Singh is relying on adequate rainfall to boost harvest and slow inflation, even as the weather office predicts monsoon rain will be below normal for the second time in three years. Reserve Bank of India Deputy Governor Subir Gokarn said yesterday food inflation remains “uncomfortably high” and that farm output needs to rise. (Bloomberg)

Taiwan: Industrial output growth unexpectedly accelerates
Taiwan‟s industrial production unexpectedly climbed at a faster pace in May, increasing the scope for an interest-rate increase next week. Output advanced 7.82% from a year earlier, after gaining a revised 7.18% in April, the Ministry of Economic Affairs said in Taipei yesterday. Taiwan‟s government predicts exports will increase almost 16% in 2011, overcoming trade disruptions from Japan‟s earthquake and contributing to economic growth of about 5%. (Bloomberg)

EU: Services, manufacturing weaken more than forecast
European services and manufacturing growth slowed more than economists forecast in June, adding to signs that the economy is losing some momentum. A composite index based on a survey of euro-area purchasing managers in both industries fell to 53.6 from 55.8 in May, London-based Markit Economics said yesterday. A reading above 50 indicates growth. Output growth weakened to the slowest in almost two years. (Bloomberg)

EU: Greece’s additional budget cuts said to be backed by EU, IMF
Measures proposed by the Greek government to complete a EUR78bn (USD111bn) austerity package required to win a bailout were endorsed by officials from the European Union and the International Monetary Fund, said a person familiar with the matter. Greek lawmakers must approve the measures in a vote next week, a condition for receiving a fifth loan payment under an existing EU-led bailout and for future financing. Failure to secure aid would push Greece to the brink of default, with the country needing the funds to cover EUR6.6bn of maturing bonds in August. (Bloomberg)

US: Jobless claims increase, confidence declines
More Americans than forecast filed first-time jobless claims last week and consumer confidence fell, highlighting Federal Reserve Chairman Ben S. Bernanke‟s concern that the slowdown in the economy may persist. Applications for unemployment benefits increased 9,000 in the week ended 18 June to 429,000, Labor Department figures showed yesterday. The level of claims exceeded the highest estimate in a Bloomberg News survey in which the median projection called for 415,000 filings. The Bloomberg Consumer Comfort Index dropped to minus 44.9 last week from minus 44. (Bloomberg)

U.S: Purchases of new houses fell in May for the first time in three months, showing the industry is struggling to gain momentum. Sales dropped 2.1% to a 319,000 annual pace last month, figures from the Commerce Department showed today in Washington. (Source: Bloomberg)

20110624 1022 Global Market Related News.

DJIA chart reading : correction range bound little downside biased.

Hang Seng chart reading : pullback correction downside biased.

Asian Stocks Set for Weekly Gain (Source: Bloomberg)
Asian stocks rose, setting the region’s key index on course for its first weekly advance in eight, as tumbling oil prices buoyed economic growth hopes and concern eased that Europe’s debt crisis will spread. Sony Corp. (6758), Japan’s largest exporter of consumer electronics, and Korea’s Samsung Electronics Co., both of which get at least 20 percent of sales from Europe, advanced after European Union leaders vowed to rescue Greece from default. Qantas Airways Ltd. (QAN), Australia’s biggest airline, climbed 2.8 percent after oil prices slid 4.6 percent in New York yesterday. Oil and gas producer Woodside Petroleum Ltd. (WPL) sank 0.7 percent in Sydney.

Jobless Claims Rise, Confidence Falls (Source: Bloomberg)
More Americans than forecast filed first-time jobless claims last week and consumer confidence fell, highlighting Federal Reserve Chairman Ben S. Bernanke’s concern that the slowdown in the economy may persist. Applications for unemployment benefits increased 9,000 in the week ended June 18 to 429,000, Labor Department figures showed today. The level of claims exceeded the highest estimate in a Bloomberg News survey in which the median projection called for 415,000 filings. The Bloomberg Consumer Comfort Index dropped to minus 44.9 last week from minus 44.

Sales of New U.S. Homes Decreased in May for First Time in Three Months (Source: Bloomberg)
Purchases of new U.S. houses fell in May for the first time in three months, showing the industry is struggling to gain momentum. Sales dropped 2.1 percent to a 319,000 annual pace last month, figures from the Commerce Department showed today in Washington. The median estimate in a Bloomberg News survey of economists called for sales at a 310,000 rate. The median price of new homes sold dropped from a year earlier.

U.S. Consumer Confidence Falls First Time in Month, Bloomberg Index Shows (Source: Bloomberg)
Consumer confidence fell for the first time in five weeks as Americans grew more concerned about the economy. The Bloomberg Consumer Comfort Index dropped to minus 44.9 in the period to June 19, from the prior week’s minus 44. The decline, within the survey’s margin of error of 3 percentage points, left the gauge close to its average for the year.

Bernanke Leaves Door Open to More Stimulus Should Economy Fail to Rebound (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke left the door open to a fresh shot of monetary stimulus should the economic rebound he’s predicting fail to materialize. The Fed would be “prepared to take additional action, obviously, if conditions warranted,” including the purchase of more Treasury securities, Bernanke said yesterday after U.S. central bankers met in Washington. The economy will probably overcome constraints from elevated energy prices and Japan- related disruptions to manufacturing, he said. Still, declining home prices, high unemployment and weaknesses in the financial system may restrain the recovery in the longer term, he said.

Fed cuts growth forecast; no hint of more support
WASHINGTON, June 22 (Reuters) - The Federal Reserve on Wednesday cut its forecasts for U.S. economic growth, but offered no hint of further monetary support, saying the recovery should gradually pick up heading into 2012.
Fed Chairman Ben Bernanke said factors weighing on the economy, such as high commodity prices, should be fleeting but warned some of the weakness could linger.

Fed, euro zone crisis depress demand for risk
LONDON, June 23 (Reuters) - Investors reacted with caution on Thursday to a relatively downbeat outlook from the U.S. Federal Reserve, sending world stocks lower and boosting the dollar in a search for safety.
Europe's debt crisis added to the mood, with a summit of European leaders beginning later in the day due to focus on the Greek bailout.

China factory growth at 11-mth low, close to stalling-PMI
BEIJING, June 23 (Reuters) - China's factory-sector growth was close to stalling in June even as price pressures eased, a purchasing managers' survey showed on Thursday, reflecting the impact of tightening in monetary policy and slack global demand.
The flash HSBC PMI, the earliest available indicator of China's industrial activity, eased to 50.1 in June, the lowest since July 2010. A sub-index for new orders also dropped to its lowest since July 2010.

China Inflation Will Be ‘Under Control’: Wen (Source: Bloomberg)
Premier Wen Jiabao said that China’s efforts to stem inflation have worked and that the pace of consumer-price increases will slow, an assessment that contrasts with some economists advocating further steps. “There is concern as to whether China can rein in inflation and sustain its rapid development -- my answer is an emphatic yes,” Wen wrote in an opinion piece in the Financial Times newspaper. “China has made capping price rises the priority of macroeconomic regulation and introduced a host of targeted policies. These have worked. The overall price level is within a controllable range and is expected to drop steadily.”

Off-Balance-Sheet Loans Double, Boosting Bank Default Risk: China Credit (Source: Bloomberg)
Chinese banks helped arrange 320 billion yuan ($49.5 billion) of loans between companies in the first quarter that weren’t recorded in the lenders’ balance sheets, raising the risk on their bonds to a nine-month high. While global financial regulators are requiring more transparency and the People’s Bank of China restricts credit to cool inflation, lenders have increased the off-balance sheet loans by 110 percent, central bank data show. Credit-default swaps on Bank of China Ltd. are on course for their biggest monthly rise in a year and are the most expensive since September, according to data compiled by Bloomberg.

Japan Stocks Rise on EU Pledge to Rescue Greece From Default; Sony Gains (Source: Bloomberg)
Japanese stocks rose for the fourth time this week after European Union leaders vowed to rescue Greece, easing concern the region’s debt crisis will spread and cause damage to Japan’s export markets.

EU Vows to Rescue Greece in Exchange for Cuts (Source: Bloomberg)
European Union leaders pledged to stabilize the euro-area economy, vowing to stave off a Greek default as long as Prime Minister George Papandreou pushes through a package of budget cuts next week. “This is not only a green light but also a positive sign for the future of Greece,” Papandreou told reporters after the first session of an EU summit in Brussels late yesterday.

Euro Set for Third Weekly Drop Versus Dollar as EU Discusses Greece Rescue (Source: Bloomberg)
The euro was set for a third weekly decline against the dollar, the longest streak in four months, before European Union leaders conclude a summit in Brussels today on financing needs for debt-saddled Greece.

German Business Confidence Probably Declined in June on Worsening Crisis (Source: Bloomberg)
German business confidence probably declined to the lowest level in eight months in June as Europe’s worsening sovereign-debt crisis and a faltering global recovery clouded the economic outlook.

Aussie Dollar Rebounds From One-Month Low on Bets Greece Will Pass Cuts (Source: Bloomberg)
The Australian dollar climbed from a one-month low against the U.S. currency on optimism Greece will pass budget cuts next week needed to receive additional aid, boosting demand for higher-yielding assets.

FOREX-Dollar bullish after Fed comments; euro zone PMI weighs
LONDON, June 23 (Reuters) - The dollar climbed on Thursday and looked poised to rise further as investors unwound bullish bets in higher-yielding currencies after the U.S. Federal Reserve downgraded economic growth forecasts.
The Fed cut its GDP growth forecasts lower and upwardly revised inflation expectations, while holding off from  signalling a third round of quantitative easing, saying the U.S. recovery should gradually pick up heading into 2012.

20110624 1020 Global Commodities Related News.

Corn (Source: CME)
US corn futures rebound from heavy selling, with nearby July contract ending higher after touching a three-month low. Early sell-off was considered overdone as it followed a limit-down drop Wednesday. Grain users saw decline as an opportunity to secure grain and buy back previously sold positions, traders say. Concerns about a global economic slowdown weighed on prices, although uncertainty about plantings and supplies keeps grain users on edge. CBOT July corn rises 3c to $6.80 1/2 a bushel after trading in a wide 49c range. December corn slips 4 1/4c to $6.46.

Wheat (Source: CME)
US wheat futures finish mixed, as July contract rebounds from sharp, early losses. Nearby contract drifted higher after reaching lowest price since July 2010. Traders saw the declines as an opportunity to book grain and buy back previously sold positions, traders say. Demand for soft red winter wheat expected to increase as livestock producers search for alternative feed ingredients to high-priced corn, an analyst notes. CBOT July wheat rises 10 3/4c to $6.49 a bushel, while September wheat falls 4c to $6.69 1/4. KCBT September loses 10 1/2c to $7.78 1/4; MGE September sheds 16c to $8.35 1/2.

Rice (Source: CME)
US rice futures finish higher in a rebound from a two-month low. Traders say the decline was overdone and predict it will increase demand for the grain. Weekly US rice export sales of 76,500 tons for the week ended June 16 were up 23% from the prior four-week average. Major buyers included Turkey, which booked 52,100 tons, and Mexico, which bought 20,000 tons, according to federal data. CBOT September rice rises 11c to $14.73 1/2 per hundredweight.

GRAINS-U.S. corn slides to 6-week low as selloff continues
SINGAPORE, June 23 (Reuters) - U.S. corn futures fell 1.6 percent on Thursday, dropping to a six-week low, while wheat lost 0.2 percent to trade near its lowest in almost 11 months as long liquidation, sparked by Black Sea wheat continued to hammer the grain markets.
"The thing with corn is that at what point does the market think it is overdone," said Brett Cooper, senior manager of markets at FCStone Australia.

Mexico sees some corn losses due dry weather
MEXICO CITY, June 22 (Reuters) - Mexico's 2011 corn crop will come in slightly below forecasts as late rains hit production but next year's crop is likely to bounce back, the deputy agriculture minister told Reuters on Wednesday.
Mexico's corn harvest was first hit this year by a hard frost in February that wiped out most of the crops in the major producing state of Sinaloa. Farmers quickly organized a massive replanting effort but their output will fall short of expectations on a recent spate of dry weather.

G20 to include market regulation in farm deal-source
PARIS, June 23 (Reuters) - G20 agriculture ministers have agreed to include the divisive issue of reforming food commodity markets regulation in the final communique for their meeting in Paris, a source attending the negotiations said on Thursday.
"There is a deal on regulation, including a reference on position limits," the source told Reuters as ministers continued to discuss France's action plan to curb food price volatility.

Russia ends spring sowing, keeps grain crop forecast
MOSCOW, June 23 (Reuters) - Russia has completed its spring sowing and still expects this year's grain crop to reach 85 million tonnes, the Agriculture Ministry said on Thursday.
"Under favourable weather conditions we may reap 85 million tonnes of grain," Minister Yelena Skrynnik said in a statement.

Mexican corn miller Gruma refinances some debt
MEXICO CITY, June 22 (Reuters) - Mexican corn miller Gruma  said on Wednesday it refinanced part of its debt in a move that will save $72 million over the life of the loans.
The company said it entered new arrangements that include a seven-year syndicated loan for 1.2 billion pesos ($102 million), a seven-year bank loan for 600 million pesos, a new credit line and an extension and increase of an existing line of credit. At the same time, it paid off a more expensive loan of 3.4 billion pesos.

Egypt won't buy Russia wheat until new harvest
CAIRO, June 22 (Reuters) - Egypt's main state wheat buyer said on Wednesday it had postponed any purchase of Russian wheat until the new Russian harvest was gathered in July so that it could ensure the purchases meet Egyptian conditions.
Nomani Nomani, vice chairman of the General Authority for Supply Commodities (GASC), said purchases of Russian wheat "are postponed until their new harvest is in place and until GASC ensures it matches its conditions."

Regulation key stumbling block in G20 farm talks
PARIS, June 22 (Reuters) - French calls for tighter regulation of commodity markets proved a stumbling block at G20 agricultural talks on Wednesday, which agreed to pool farm data to help curb volatile food prices.
Two officials leaving after a ministerial dinner opposite the Presidential Elysee Palace said there had been progress but no overall deal yet as farm ministers were set to negotiate late into the night before a final session on Thursday.

Toepfer Raises Hopes For Germany's Grain Crop On May Rains (Source: CME)
Germany is set to harvest between 42 million and 43 million tons of grain in the 2011-12 season, Toepfer International said, raising its previous forecast slightly due to improving weather. The country's largest grain merchant said it expects farmers to produce 23 million-23.5 million tons of wheat, only slightly below last year's output of 23.8 million tons after recent rainfall revived parched crops. The corn crop is expected to come in at 4.1 million to 4.6 million tons, and barley 9 million to 9.5 million tons, down from 10.4 million tons last year. "Even a high thousand kernel weight is no longer expected to be able to compensate for the low number of ears per square meter," said Toepfer. Still, rapeseed yields are expected to remain stunted after drought compounded the effects of a poor planting season.
Production in Europe's largest producer is estimated at 4.3 million to 4.7 million tons, down from 5.7 million tons the year before. "The decline in yields will probably be even more noticeable in the case of rapeseed, with low crop density and poor pod setting across practically the whole country," Toepfer said in a note.

G20 Deal Disappoints Hopes For World Food Markets Shakeup (Source: CME)
A deal by agriculture ministers from the Group of 20 nations announced does not go far enough toward tackling the growing threats to food security and rising prices, critics said. Farm ministers of the world's biggest economies said they would set up a monitoring system for food stocks and production and push to improve agricultural investments in the developing world. Minsters also announced measures to protect the world's poor from production shocks after world food prices hit a record high this year, including creating a network of stocks in vulnerable countries and halting export bans on food aid. Food security has risen to the top of the political agenda this year after the second spike in four years was blamed for sparking the wave of unrest that has rocked the Arab world, causing headaches for policy makers.
Yet critics of the deal said ministers passed the buck on two of the most important issues facing world food markets: the growing use of food crops to create biofuels and the role of speculators in financial markets. "The action plan adopted today addresses the symptoms of price volatility on agricultural markets, but it fails to address the causes," said the United Nations' special rapporteur on the right to food Olivier De Schutter. A report for the G20 by 10 agencies, including the World Bank and World Trade Organization, found that "biofuel production will exert considerable upward pressure on [food] prices" and recommended policymakers "remove ... policies that subsidize or mandate biofuels production or consumption." The G20's statement, however, said that it will "address the challenges and opportunities posed by biofuels, in view of the world's food security, energy and sustainable development needs" but made no definite statement on changing government policies on use of the fuel.
"The European ethanol industry welcomes the decision by the G20 to vanquish the myth that biofuels are responsible for food price volatility," said pro-biofuels lobby group ePure Secretary General Rob Vierhout. But Jean-Cyril Dagorn, policy advisor for Oxfam, slammed the "sticking plaster approach" adopted by the meeting and said only "reforming flawed biofuels policies which divert food into fuel and helping poor countries build up buffer stocks" would help poor countries deal with food shortages. Another issue, but one heralded as key to stopping food price rises by France, was also left on the sidelines: regulating commodity markets. France has vowed to crack down on speculation on food commodities and has blamed the meteoric expansion of commodities derivatives markets--the size of which far exceeds that of physical markets--for fueling food price volatility. But countries such as Brazil, the U.S. and Europe argue that tempering futures markets could be tantamount to price controls.
Minsters said they "strongly encourage G20 Finance Ministers and Central Bank Governors to take the appropriate decisions for a better regulation and supervision of agricultural financial markets" when they meet in July. A European Union source said he was optimistic this would be addressed next month. But the U.N.'s De Schutter said the statement missed the point. "Speculation typically results not from the manipulation of prices by one single financial actor taking excessive positions, but from the combined actions of a large number of actors adopting a herding behaviour," he said.

G-20 Ministers Agree to Limit Crop-Export Bans, Start Agriculture Database (Source: Bloomberg)
Group of 20 farm ministers agreed to a plan to set limits on export bans and create a crop database to tackle what French President Nicolas Sarkozy called the “plague” of rising food prices. The agreement includes a call for international market regulation, more agriculture production and the development of a proposal for emergency food reserves, the ministers said in a declaration after a two-day meeting wrapped up in Paris today. Food for humanitarian purposes will be exempt from export bans, they said.

China, India, Brazil Back France’s Plan to Tackle ‘Plague’ of Food Prices (Source: Bloomberg)
China, India and Brazil were among Group of 20 countries that backed new rules for global agriculture at a meeting in Paris today, France said. Farm ministers from the U.S., the U.K., Australia and Argentina hadn’t stated their positions on the plan yet, French agriculture ministry spokesman Bertrand Sirven said in a briefing at a meeting of G-20 agriculture ministers in Paris.

China Envoy: Govt Doesn't Advocate Companies Buying Africa Farmland (Source: CME)
A top China envoy to Africa said the government doesn't advocate Chinese companies' acquisition of farmland in Africa and hasn't encouraged Chinese farmers to move to the continent. While China has sought to strengthen ties with Africa in part to feed its need for resources, the comments by Liu Guijin, China's special envoy for African affairs, at a briefing to reporters on China-Africa relations, distance government policy from what the ambassador called a "sensitive" issue of an apparent rising presence of Chinese agricultural interests in developing foreign farmland for domestic food security purposes. On whether Beijing was behind the migration of Chinese farmers from Hebei province to Africa, Liu acknowledged that some Chinese farmers had moved to some African nations in private capacity, but said the government wasn't helping them. "The government knows that grabbing farmland is a very sensitive issue...and will not encourage it," he said.
Media reports have suggested that thousands of Hebei farmers have moved to more than a dozen African countries in recent years, setting up farming businesses in places such as Nigeria, Zambia, Sudan and Kenya. Liu said some private Chinese companies may have their own projects in placing local personnel in Africa to develop agriculture, but Beijing's policy is aimed at sharing agricultural technology with Africa. China is home to a fifth of the world's population but has only about 7% of global arable land, making food security a top government priority. Chinese companies have made strides in similar ventures in Latin America and Southeast Asia. Earlier this month, one of China's largest farming companies, Heilongjiang Beidahuang Nongken Group, signed a joint venture with Argentina's Cresud SA to buy land and farm soybeans. Cresud is one of Argentina's top farming companies, controlling more than 1 million hectares of farmland.
Heilongjiang Beidahuang's chairman, Sui Fengfu, told Dow Jones Newswires in March that the company planned to buy 200,000 hectares of overseas farmland this year, and that Latin America was a key target. The company is already farming 2 million hectares outside China. Heilongjiang Beidahuang is also spending $1.5 billion to lease and develop farms on 300,000 hectares in Argentina's Rio Negro Province. The company plans to grow wheat, corn, soybeans, fruits, vegetables and wine grapes for export to China over 5-10 years. However, the Latin American deals are not land acquisition projects and appear to be crafted to avoid a backlash against foreign ownership of farmland in Argentina. Argentina's President Cristina Fernandez has introduced legislation limiting land purchases by foreign individuals and companies to 1,000 hectares in rural areas. Chinese companies are also playing an increasingly important role in developing farmland in the Philippines and Cuba, among other countries.

Indian Panel Meets To Identify Ways Of Plugging Food Wastage (Source: CME)
An Indian government-appointed panel, which is preparing a massive drive to stop rampant wastage of food, held its first meeting to identify measures that could help feed millions of people who go hungry. Food Minister K.V. Thomas told reporters after the panel's meeting that the government wants to first launch a nationwide awareness campaign as well as appeals to hotels and institutions to distribute their leftover food to charities. "We will also conduct a survey on food wastage to assess the implications," he said. "Our talks are still preliminary but these measures are already in our mind." Nearly 30% of the country's fruits and vegetables perish due to a lack of cold storage facilities, while thousands of tons of food grain spoil in ill-equipped warehouses. Also, 15%-20% of cooked food at weddings, parties or restaurants is wasted as well. Distribution losses of more than 30% of the grain supplied also plagues the government's giant distribution network, and food often doesn't reach the poor.

Liffe robusta coffee hits 4-month low, sugar steady
LONDON, June 23 (Reuters) - Liffe robusta coffee extended  losses to hit a fresh four-month low in early trade on Thursday, hovering above key technical support levels, while ICE arabicas  edged higher.
Sugar was steady, consolidating gains, while cocoa was also  near unchanged.
Liffe robusta coffee futures fell to a four-month low on  light investor selling in early trade, before steadying above  key technical support of $2,246 a tonne.

Brazil cocoa arrivals nudge higher after pause
BRASILIA, June 22 (Reuters) - Deliveries of cocoa to warehouses in Brazil picked up again in the last week following a dip a week prior, data from the commercial association of the top cocoa state Bahia showed.
Output from the mid crop harvest which began last month, rose in both Bahia and outlying cocoa states.

India may decide on more sugar exports Thursday-minister
NEW DELHI, June 23 (Reuters) - India's government could decide to allow more sugar exports at a meeting later on Thursday, Food Minister K.V. Thomas said, after industry calls for extra sales over the 500,000 tonnes allowed under Open General Licence (OGL) in December.
India, the world's top sugar consumer and biggest producer after Brazil, had stocks of 23.26 million tonnes on June 1, well above last year and at least a year's supply, and sugar mills have sought permission to export an extra 1.5 million tonnes.

EU on track to okay sugar exports if well-supplied
BRUSSELS, June 23 (Reuters) - The EU is on track to approve some 700,000 tonnes of sugar exports if the EU market is well supplied, Lars Hoelgaard, deputy director general, agriculture and rural development, of the EU Commission, said on Thursday.
"If things go normally - if there is a rebalancing of supply and demand in the world market, and alleviaton of the situation internally, and we would expect to have a normal harvest, I don't see why not (approve exports)," he said in a question-and-answer session at an F.O. Licht sugar conference.

Demand for sustainable cocoa to surge-Fairtrade
ABIDJAN, June 22 (Reuters) - Global demand for sustainable cocoa that pays a stable price to farmers and protects the environment is set to surge well over fivefold to more than 200,000 tonnes a year by 2020, Fairtrade said on Wednesday.
Alex Assanvo, global product manager of the Fairtrade Labelling Organisation, told Reuters on a visit to top cocoa grower Ivory Coast that his projection was partly based on targets set by chocolate maker Mars  which appear increasingly likely to be met.

Sugar prices seen strong near term, to fall in Q4
BRUSSELS, June 22 (Reuters) - Sugar futures prices are expected to stay fairly strong in the near term on worries over Brazilian output and port congestion, but prices should ease in the fourth quarter as new harvests roll in.
A rally to 2-1/2-month highs had been driven by worries over shipping bottlenecks in top producer Brazil, mainly centred on a terminal at Santos due to big orders from China, as well as delays in number two exporter Thailand.

US ethanol production up 2 pct in week
KANSAS CITY, Mo., June 22 (Reuters) - U.S. ethanol production rose 2.4 percent in the latest reporting week, edging higher after a slide the prior week, the government said on Wednesday.
Ethanol output totaled 901,000 barrels per day (bpd) for the week ended June 17, down up 21,000 bpd over the previous week, even as ethanol stocks fell 236,000 barrels to 19.51 million barrels, the Energy Information Administration said in its weekly petroleum report.

Oil Rises on Concern IEA Crude Release May Limit Future Supply Responses (Source: Bloomberg)
Oil rose in New York, reversing yesterday’s plunge, on concerns that stockpile releases by consuming nations may limit the ability to respond to supply disruptions in future. Crude climbed as much as 1.5 percent today after sliding 4.6 percent yesterday. The International Energy Agency agreed to release 60 million barrels to buyers. Oil stockpiles among the 28 member countries of the IEA declined by 340,000 barrels a day during the first quarter of this year, the Agency said in its monthly Oil Market Report on June 16.

‘Head-Scratcher’ Crude Release Plunges Oil Stocks (Source: Bloomberg)
Oil producers tumbled the most in more than a year after the U.S. government announced plans to pour as much as 1 million barrels of stockpiled crude a day into an already-glutted market. The U.S. and 27 other nations pledged today to tap government-controlled oil inventories after civil war in Libya disrupted crude shipments and Saudi Arabia failed to persuade fellow members of the Organization of Petroleum Exporting Countries to plug the gap with increased output. Crude futures plunged more than $5 a barrel in New York trading.

Obama Faulted for Tapping U.S. Petroleum Reserves by Republicans, Industry (Source: Bloomberg)
Republicans called the Obama administration’s plan to tap the Strategic Petroleum Reserve a political move, while some Democrats said the effort to ease shortages may be too little, too late. The U.S. release of 30 million barrels of oil accounts for half the amount the International Energy Agency plans to deliver to the market to ease shortages of Middle East supplies triggered by the strife in Libya, the Energy Department said today in a statement. Republicans joined the oil industry in saying the release wasn’t needed and more drilling is.

Gold Drops Most in Seven Weeks as Slow Economy, Oil Slump Ease Inflation (Source: Bloomberg)
Gold futures plunged the most in seven weeks as a slowing economy and a rising dollar eroded the appeal of commodities as an investment and eased the risk of accelerating inflation. The U.S. economy is recovering at a “moderate pace, though somewhat more slowly” than expected, Federal Reserve Chairman Ben S. Bernanke said yesterday. The Dollar Index gained as much as 1.4 percent, while a plunge in oil to the lowest price since February led the Standard & Poor’s GSCI Index of 24 raw materials to drop as much as 4.7 percent today.

Brazil gov't may double mine royalties
BRASILIA, June 22 (Reuters) - Brazil could double mining royalties to 4 percent as part of efforts to boost revenue from its soaring output of minerals such as iron ore, copper and gold, the country's Mines and Energy Minister said on Wednesday.
The increase, which would come as part of an overhaul of Brazil's mining code, may raise the cost of raw materials for industry worldwide and cut profit at mining giant Vale , the world's top iron ore miner.

Japan smelters win copper TC/RCs double last yr-sources
TOKYO, June 23 (Reuters) - Japanese smelters have agreed mid-term copper treatment and refining charges at more than double last year's level, two sources said, as reduced buying of copper concentrates by China and Japan resulted in a glut of ore, pushing up smelters' treatment charges. 
Japanese smelters have agreed a treatment charge of $85 per tonne and refining charge of 8.5 cents per pound, two trading sources told Reuters, up from an estimated $40/4 cents fees last year.

Copper market sees surplus in Jan-April -WBMS
LONDON, June 22 (Reuters) - The global copper market saw a surplus of 116,900 tonnes in the January to April 2011 period compared with a surplus of 40,000 tonnes for the whole of last year, the World Bureau of Metals Statistics said on Wednesday.
World mine production in the first four months of 2011 was 5.20 million tonnes, up 2.3 percent from the same period last year, and refined production at 6.37 million tonnes was up 1.3 percent over the same period.

China copper imports may rise in 2nd half-Aurubis
HAMBURG, May 22 (Reuters) - China's copper imports are likely to rise in the second half of 2011 after a fall in past months as the country uses up its domestic stocks, Aurubis , Europe's biggest copper producer, said on Wednesday.
Imports into the world's top copper buyer in May fell to 149,235 tonnes from April's 160,236 tonnes and by 46.7 percent from May 2010, a breakdown of the May data by the General Administration of Customs showed on Tuesday.

Underground operations halted at Zambia nickel mine
LUSAKA, June 22 (Reuters) - Underground operations at Zambia's Munali nickel mine have been suspended since Friday because of ventilation problems and should resume in three weeks, officials said on Wednesday.
Ventilation fans had to be switched off after a sink hole was discovered and the mine was evacuated but no one was hurt.
The mine is run by Australia-listed Albidon , 50 percent owned by China's Jinchuan Group, and was expected to produce around 56,000 tonnes of nickel concentrate this year.

China lead output seen falling into July on crackdown, poor demand
HONG KONG, June 23 (Reuters) - Refined lead production cuts in China that followed a crackdown on polluting plants launched in May and a growing supply-demand gap will extend into July as more units shut or curtail output for repairs and cleanup, industry sources said on Thursday.
China's production of refined lead fell 13.3 percent in May, partly because Beijing ordered tighter controls over lead producers and lead-acid batteries makers accused of poisoning more than 100 children and scores of adults in eastern Zhejiang province by careless handling of the highly toxic metal.

Indonesia's Timah sees tin price between $23,000-27,000/T in H2
JAKARTA, June 23 (Reuters) - Timah , the world's largest integrated tin miner, said on Thursday it saw tin prices trading at $23,000 to $27,000 per tonne in the second half of this year, lower than its full year target price.
Tin for three-month delivery on the London Metal Exchange  traded at $25,160 a tonne at 1007 GMT. The metal, used in solders and tinplate, touched its lowest level since December 2010 at $24,510 per tonne on June 14.

METALS-Copper falls on dollar, growth concerns
LONDON, June 23 (Reuters) - Copper fell on Thursday on a stronger dollar and concerns about demand in the United States after the Federal Reserve cut its forecasts for economic growth in the world's largest economy.
Data showing big metal consumer China's factory sector was close to stalling, and a meeting later on Thursday of European leaders over the Greek crisis also soured sentiment.

PRECIOUS-Gold cuts 4-day rally as Fed boosts dollar
LONDON, June 23 (Reuters) - Gold broke a four-day rally on Thursday after the Federal Reserve acknowledged U.S. growth was slowing but gave no hint that it needed to provide additional economic stimulus, which bolstered the dollar.
Following a two-day meeting on Wednesday, the Fed cut its forecasts for U.S. growth but did not suggest it would conduct a third round of quantitative easing, while at the same time signalling it would shift its focus to headline rather than core inflation.

20110624 1019 Soy Oil & Palm Oil Related News.

Soy Oil chart reading : pullback correction downside biased

Soybeans (Source: CME)
US soybean futures fell to their lowest level in 5-weeks, sliding on broader base selling amid strong gains in the U.S. dollar. The market took its guidance from external financial markets, with the surge in the dollar and plunge in crude oil and equities encouraging investors to reduce risk in the market, analysts said. Slower export demand and favorable near term weather for developing crops aided the lower tone. However, futures ended well off session lows, as support from tight supplies and the uncertainty of a long growing season encourage traders not to take too much risk premium out of prices, analysts add. CBOT Nov soy end down 1.1% at $13.17 1/4/bushel.

Soybean Meal/Oil (Source: CME)
Soy product futures fell in unison with soybeans and broader commodity markets. Widespread selling as a result of dimmer global economic views, soaring US dollar and slumping crude oil generated pressure to overshadow supportive May inventory figures from the Census Bureau, analyst said. CBOT Dec soyoil dropped 1.9% to 56.38 cents/pound, and July soymeal ended down 1.9% at $340.60/short ton.

Palm oil hits 7-mth low as output seen rising
JAKARTA, June 23 (Reuters) - Malaysian palm oil futures touched a seven-month low on Thursday, as comparative oils and expectations of higher second half production in Southeast Asia weighed on prices.
"Essentially the recovery in the yields will cause prices to normalize after some weather problems earlier this year," a Singapore-based analyst said.

Indonesia may cap palm oil export tax at 20 pct-official
JAKARTA, June 23 (Reuters) - Indonesia, the world's top palm oil producer, may cap its maximum edible oil export tax at 20 percent instead of 25 percent, an official at the industry ministry said on Thursday.
The existing crude palm oil export tax system, aimed at securing domestic supply and reducing volatility in cooking oil prices, allows the government to impose tax rates from 1.5 to 25 percent.

Paraguay farmers see 2010/11 soy crop at 8.4 mln T
ASUNCION, June 22 (Reuters) - Paraguay's 2010/11 soy harvest came in at a record 8.4 million tonnes, in line with the government's forecast, a research institute representing farming and exporting groups said on Wednesday.
Paraguay is the world's No 4 soybean exporter, though it trails far behind neighboring agricultural giants Brazil and Argentina. The small country's economy is highly dependent on increasing oilseed exports for economic growth.

European vegoils: Palm oil lower on rising stocks
ROTTERDAM, June 22 (Reuters) - Palm oil on the European vegetable oil market eased on Wednesday on prospects that growing palm oil output will lead to larger palm oil stocks, market sources said.
"Despite the lower asking prices and a weaker dollar business was not very active because most buyers were holding back expecting levels to drop even further," one broker said.