Monday, June 27, 2011

20110627 1814 FCPO EOD Daily Chart Study.

FCPO closed : 3042, changed : -75 points, volume : lower.
Bollinger band reading : downside biased with possible pullback correction.
MACD Histrogram : falling, seller in charge.
Support : 3020, 2970, 2930, 2900 level.
Resistance : 3050, 3070, 3100, 3150 level.
Comment :
FCPO closed recorded loss for 4th consecutive day with lower volume participation while last Friday soy oil closed recorded small gain having technical rebound and currently resume trading lower.
Both cargo surveyors reported improved but declining export data for the period of 1~25 Jun 2011 seems disappointing to the market that still having heavy concern over picking up production cycle.
Daily chart formed a wide range down bar candle closed below lower Bollinger band level after market opened gap down, traded range bound followed by 2nd session gap down again and traded range bound again with last minute sell down triggered some stop loss order to closed near the low of the day.
Chart reading suggesting a downside biased market development with possible pullback correction testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with larger cut loss and profit target.

20110627 1729 FKLI EOD Daily Chart Study.

FKLI closed : 1564.5 changed : -5 points, volume : higher.
Bollinger band reading : pullback correction upside biased.
MACD Histrogram : turned downward, buyer taking profit.
Support : 1550, 1540, 1530, 1515 level.
Resistance : 1565, 1580, 1590, 1600 level.
Comment :
FKLI closed recorded loss with better volume changed hand doing 1 point discount compare to cash market that closed marginally lower while Asia markets closed mostly lower and European markets currently having mixed development with last Friday U.S. market closed lower.
News wise, Greek going to vote on unpopular fiscal austerity measures this week and market anticipation of U.S. factory activity show slowing growth lead market to trade in negative zone. Back home, tomorrow Malaysia Sugar debut performance will be the key factor to watch closely.
Daily chart formed a doji bar candle closed below upper Bollinger band after market opened and tested lower, traded range bound within 6 points range market to closed at opening price level.
Chart reading shows that market is having pullback correction within an upside biased market development testing support and resistance level with roll over activities started to picked 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.

20110627 1535 Global Market & Commodities Related News.

Dollar gains, stocks fall as Europe rot feared
SINGAPORE, June 27 (Reuters) - The U.S. dollar rose and equities fell on Monday, with investors nervous ahead of a Greek vote on unpopular fiscal austerity measures this week that may sow doubts about financial stability in Europe.
"Contagion would run through government bond markets and via interbank funding markets," said Societe Generale economists about the implications of a "no" vote from Greece.

U.S. wheat drops on global growth concerns
SYDNEY, June 27 (Reuters) - U.S. wheat futures fell more than 1 percent on Monday on the dollar's gain, bearish equity markets, edgy sentiment ahead of a Greek vote on unpopular fiscal austerity measures and worries about global economic growth.
Wheat for July delivery  was down 1.1 percent at $6.53-3/4 in early Asian trade as general market unease was compounded by northern hemisphere harvests adding extra supply.

Vietnam June coffee exports jump 21.2 pct y/y-Ag Min
HANOI, June 27 (Reuters) - Vietnam's June coffee exports rose an estimated 21.2 percent from a year ago to 115,000 tonnes, or 1.92 million bags, exceeding market expectations, the agriculture ministry said.
The estimate is above trader forecasts, which projected the monthly shipment to dip to between 65,000 tonnes and 80,000 tonnes from the export volumes in previous months of 2011.

Vietnam H1 rice exports jump 15 pct y/y-Ag Min
HANOI, June 27 (Reuters) - Vietnam's rice exports in the first half of 2011 rose 15 percent from the same period last year to an estimated 3.98 million tonnes, the agriculture ministry said. 
Revenue from rice exports increased 13 percent from a year ago to an estimated $1.96 billion, the ministry said in its monthly report compiled on Saturday.

Global 2011/12 coffee crop at 135 mln bags-USDA
WASHINGTON, June 24 (Reuters) - World coffee production is pegged at 135 million 60-kg bags in 2011/12, when global output will exceed consumption for the second straight year while ending stocks stay tight, the U.S. Agriculture Department forecast on Friday.
Arabica coffee futures  trading on ICE surged nearly 130 percent to a 34-year high at $3.0890 per lb in early May, in an 11-month rally that started in June 2010. The market soared far beyond levels anticipated by many analysts on concern about tight global supplies of high-quality beans and on speculative buying.

Extra sugar from India unlikely before Nov
NEW DELHI, June 24 (Reuters) - Global sugar markets may have to wait until November to see if they will get any further supplies from India, as the government of the world's second-biggest producer waits to check next season's output before allowing more exports.
India's announced on Thursday it would double exports this year to 1 million tonnes. The benchmark New York price  fell more than 5 percent, though the tumble came amid a broad sell-off in commodities.

Oil slips as dollar rises ahead of Greek vote; higher supplies
SINGAPORE, June 27 (Reuters) - Brent slipped under $105 on Monday, extending the previous week's losses, as the U.S. dollar gained ahead of a vote by Greece to clear unpopular fiscal austerity measures.
"The market is trying to pre-empt Greece and worries in the West," Jonathan Barratt, managing director of Commodity Broking Services in Sydney.   

S.Korea finance ministry rules out crude import tariff cut
SEOUL, June 27 (Reuters) - South Korea's finance ministry on Monday said there are no plans to cut the crude oil import tariff to help reduce refined fuel costs, responding to a newspaper report.
A local daily Chosun Ilbo on Monday quoted a senior government official as saying that by lowering the 3-percent tariff on top of the IEA's emergency oil stocks release, fuel prices would be lower by about 56 Korean won ($0.052) per litre even if refiners go ahead with an expected July price hike.

Iran says will reject rise in OPEC production ceiling
Tehran, June 26 (Reuters) - Iran will reject increase of OPEC production ceiling in the cartel's next meeting, the country's Oil Ministry caretaker Mohammad Aliabadi told the semi-official Mehr news agency on Sunday.
"Considering the demand and supply situation in the oil market, Iran will reject any increase in the OPEC output ceiling in the next meeting ... OPEC has no intention to increase prices of crude," Aliabadi said.

Iran condemns IEA decision to release oil stocks
TEHRAN, June 25 (Reuters)- Iran condemned on Saturday a decision by oil consumer nations to release strategic crude stocks as politically motivated interference in the market that would not have a sustained impact on prices.
"The measure by the International Energy Agency in consuming their oil stockpile is meddling in the natural oil market trend and the drop in oil prices will not be sustainable," Iran's OPEC governor Mohammad Ali Khatibi was quoted as saying by the Oil Ministry website SHANA.

US' Geithner: Oil release not a political move
HANOVER, N.H., June 24 (Reuters) - U.S. Treasury Secretary Timothy Geithner defended the decision by industrialized  nations to release emergency oil reserves into global energy markets, saying on Friday that it was not a political move.
"It's really as simple as this: there's a war in Libya, costs between one and two million barrels a day in lost output, I think 140 million barrels off the market so far," he said in response to a question at Dartmouth College, where he spoke on a panel.

Speculator oil bets drop back to pre-Libya levels-CFTC
NEW YORK, June 24 (Reuters) - The great surge of investor money that flowed into the U.S. crude oil market as the crisis in Libya developed had been almost completely unwound prior to the decision by industrial nations to tap strategic reserves, data from the U.S. regulator showed on Friday.
Hedge funds and other large speculators, the so-called "money manager" category monitored by the U.S. Commodity Futures Trading Commission (CFTC), slashed bullish bets on higher oil prices in New York and London in the week to June 21, taking them to the lowest level this year.

India iron ore exports seen below 100 mln T
SINGAPORE, June 27 (Reuters) - India is likely to export 90-95 million tonnes of iron ore in the current fiscal year to March 2012, about the same level as the previous year, as domestic demand rises, an industry official said on Monday.
India -- the world's No. 3 iron ore supplier after Australia and Brazil -- normally exports around half of its annual output of about 200 million tonnes, with the bulk of it going to top consumer China.

Japan May rolled copper output up 0.1 pct yr/yr
TOKYO, June 27 (Reuters) - Japan's output of rolled copper products rose 2.4 percent in May from April as strong demand for environmentally friendly air conditioners offset weakness in chips and cars, preliminary data showed on Monday.
The Japan Copper and Brass Association said rolled copper output totalled 72,328 tonnes in May on a seasonally adjusted basis, nearly flat from a year earlier. 

Gold steady on Asian physical buying; dollar weighs
SINGAPORE, June 27 (Reuters) - Gold prices held steady on Monday, aided by active buying on the physical market in Asia, while a stronger dollar weighed along with caution as investors awaited a Greek parliament vote this week that is crucial to securing a sovereign debt bailout.
"If Greece's parliament passes the austerity measures, it could be positive for risk assets such as commodities," said Ong Yi Ling, an analyst at Phillip Futures, noting that gold could be a beneficiary as it has closely correlated with moves in other commodities recently.

20110627 1321 Global Market & Commodities Related News.

GLOBAL MARKETS: Dollar gains, stocks slip, Greece the biggest risk
SINGAPORE, June 27 (Reuters) - The U.S. dollar rose and Asian equities slipped on Monday, with investors positioning their portfolios ahead of a Greek vote on unpopular fiscal austerity measures this week and a gauge of U.S. factory activity that is expected to show slowing growth.
"A 'No' would block the much needed next tranche of the EU/IMF loan of 12 billion euros, leaving big question marks as to how Greece would fund coupon payments and bond redemptions in July and August," Societe Generale economists said in a note.

OIL: Brent falls as euro zone woes, dollar pressure
NEW YORK, June 24 (Reuters) - Brent crude prices fell 2 percent on Friday as Europe's debt problems and a dollar index rebound extended oil's decline a day after consuming nations announced they were tapping strategic reserves.
"The strengthening of the dollar index is helping pressure oil and we're seeing an unwinding of the Brent-WTI spread because of the release of the strategic reserves," said Phil Flynn, analyst at PFGBest Research in Chicago.

Gulf oil output unlikely to fall on IEA move-delegates
RIYADH, June 26 (Reuters) - Gulf oil exporters are unlikely to cut production in response to the International Energy Agency (IEA) releasing emergency stocks because demand for their crude is strong, two Gulf OPEC delegates said on Sunday.
Oil exporters' group OPEC failed in early June to agree an increase in output which Gulf Arab producers and big consumers represented by the IEA hoped would dampen prices and boost growth.

Iran says will oppose rise in OPEC production ceiling
TEHRAN, June 26 (Reuters) - Iran will reject any increase of the OPEC production ceiling in the cartel's next meeting, the country's Oil Ministry caretaker Mohammad Aliabadi told the semi-official Mehr news agency on Sunday.
"Considering the demand and supply situation in the oil market, Iran will reject any increase in the OPEC output ceiling in the next meeting ... OPEC has no intention to increase prices of crude," Aliabadi said.

Obama's oil reserves plan took shape in May-official
WASHINGTON, June 23 (Reuters) - It was on May 2, the day U.S. oil prices peaked at nearly $115 a barrel, that President Barack Obama put into a motion a controversial plan that would lead to the biggest-ever sale of U.S. emergency oil stocks.
Even as oil prices fell from that high, a core team of Obama officials pressed ahead with diplomatic efforts to rally other consuming nations behind a plan they felt would aid to the faltering global economy, while ensuring key OPEC allies were consulted, an administration official told Reuters.

India raises diesel prices to ease subsidy burden
NEW DELHI, June 24 (Reuters) - India raised diesel prices about 9 percent on Friday after months of delay, a politically unpopular move that will add to inflationary pressure but also eases the government's subsidy burden and could bolster its image among wary investors.
"This is the only window they have for any cutting of subsidies. By the end of the year they will be in (state) election mode," political analyst Mahesh Rangarajan said.

NATURAL GAS: Natural gas ends up on tech buying ahead of wkend
NEW YORK, June 24 (Reuters) - U.S. natural gas futures ended higher on Friday for only the second time in two weeks, backed by some pre-weekend technical buying and short covering after Thursday's steep slide despite comfortable supplies.
"There may have been some short covering ahead of the weekend, but the weather looks fairly warm heading into July, which is supportive," a commodity trading advisor said.

EURO COAL: Prices stable, China seeks a few bargains
LONDON, June 24 (Reuters) - Prompt physical coal values remained stable on Friday as the market digested oil's $8 fall a day earlier and concerns grew over the impact of heavy rains on Australian coal exports.
"You can't rule out the effect of fresh supply-side disruptions on prices given what's happened to coal during the past several months and it is raining hard in Australia but it's too early to say whether that's going to hit exports and push up prices," one European trader said.

20110627 1319 Global Economic Related News.

China: Stocks priced for hard landing signal rally to top brokers
The lowest Chinese stock valuations since economic growth collapsed three years ago are a sign to the nation’s biggest brokerages that it’s time to buy. The Shanghai Composite Index’s 6.2% retreat this quarter sent the gauge to 11.6 times estimated profit, data compiled by Bloomberg show. It took the global financial crisis and a decline in China’s growth rate to a seven-year low of 6.8% to push valuations this low in November 2008. The Shanghai gauge rebounded 49% in the next six months. (Bloomberg)

Vietnam: Inflation accelerated in June as prices surged the most in the world after Venezuela, putting pressure on the government to reduce the budget deficit, keep interest rates high and slow credit growth. Consumer prices climbed 20.82% this month from a year earlier, according to data released by the General Statistics Office in Hanoi. That's up from a 19.78% pace in May and is the highest rate since November 2008, according to data compiled by Bloomberg. Prices rose 1.09% from May, when they gained 2.21%.(Source: Bloomberg)

UK: BOE says debt crisis biggest UK financial-stability threat
The euro-area debt crisis poses the biggest risk to the stability of the UK financial system and banks should build up capital buffers when earnings are strong, the Bank of England said. “The most serious and immediate risk to the UK financial system stems from the worsening sovereign-debt crisis in several euro-area countries,” Bank of England Governor Mervyn King said in London today as the bank published a record of the first meeting of the interim Financial Policy Committee. The FPC is an “important step” toward financial stability, he said. (Bloomberg)

EU: Vows to avert Greek default in exchange for deficit cuts
European Union leaders vowed to stave off a Greek default as long as Prime Minister George Papandreou pushes through a package of budget cuts next week, pledging to do whatever it takes to stabilize the euro economy. Greece’s next hurdle is to shepherd 78bn euros (USD111 billion) of austerity measures through parliament, after yesterday’s endorsement of the program by experts from the European Commission, the European Central Bank and the International Monetary Fund. Europe’s latest attempt to stem the debt crisis came after bonds of debt-strapped euro nations slumped and officials in the U.S. and China warned that the euro area’s failure to restore confidence threatened the world economy. (Bloomberg)

Germany: Business confidence unexpectedly improved in June, suggesting Europe's largest economy is weathering the region's worsening sovereign debt crisis and slowing global growth. The Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, increased to 114.5 from 114.2 in May. Economists forecast a drop to 113.4, the median of 39 estimates in a Bloomberg News survey showed. The index remains close to a record high of 115.4 posted in February. (Source: Bloomberg)

US: Spending, manufacturing probably slowed
Consumer spending probably climbed at the slowest pace in almost a year and manufacturing cooled as dimmer job prospects and elevated commodity costs weighed on the US expansion, economists said reports will show. Purchases rose 0.1% in May, the smallest gain since June 2010, according to the median estimate of 63 economists in a Bloomberg News survey. The disaster in Japan also held back American factories this month, a survey of purchasing managers may show. The highest gasoline prices since 2008 and unemployment hovering around 9% caused households to pare spending, which may temper demand at factories already contending with higher input expenses and supply chain disruptions. (Bloomberg)

US: Fed seen buying USD300bn in Treasuries in year after QE2
The Federal Reserve will remain the biggest buyer of Treasuries, even after the second round of quantitative easing ends last week, as the central bank uses its USD2.86 trillion balance sheet to keep interest rates low. While the USD600 billion purchase program, known as QE2, winds down, the Fed said June 22 that it will continue to buy Treasuries with proceeds from the maturing debt it currently owns. That could mean purchases of as much as USD300 billion of government debt over the next 12 months without adding money to the financial system. (Bloomberg)

U.S: Economy grew at a 1.9% pace in the first quarter, marking the start of what Federal Reserve policy makers project is a temporary slowdown in growth. The revised rise in GDP matches the median forecast of economists surveyed by Bloomberg News and follows a 3.1% gain in the prior quarter, Commerce Department figures showed in Washington. The government last month estimated first-quarter growth at 1.8%. The figures also showed inflation climbed more than previously calculated. (Source: Bloomberg)

U.S: Durable goods orders climbed more than forecast in May, signaling manufacturing may be one of the first areas of the U.S. economy to rebound from a first-half slowdown in growth. Bookings for equipment meant to last at least three years rose 1.9% after a 2.7% April drop that was smaller than previously reported, data from Commerce Department showed in Washington. Revised figures from the agency also confirmed gains in GDP cooled last quarter. (Source: Bloomberg)

World: Oil reserves released to boost growth with price curbs. The decision by the U.S. and 27 allies to release oil stockpiles through the International Energy Agency for the first time since 2005 aims to reduce oil prices enough to bolster global economic growth. Brent crude, which lost 6.1% recently after the IEA announced its plan, may drop to USD100 a barrel over the next three months, according to a Bloomberg News survey of oil traders. The Paris-based agency said members will provide 60 million barrels, or 2 million barrels a day over 30 days, from the end of next week to make up for supplies choked off by an armed rebellion in Libya. (Source: Bloomberg)

20110627 1318 Malaysia Corporate Related News.

KLCI chart reading :
side way range bound upside biased.

Genting HK to raise RM600m bonds
Genting Hong Kong, is raising bonds worth about RMB1.3bn (RM600.2m) for general corporate purposes, said a source in its associate company. The bonds are three-year bonds with a yield of 3.95%. It was reported that Genting Hong Kong had hired CIMB Group Holdings, HSBC Holdings Plc, Malayan Banking and UBS AG to help with the sale of three-year, yuan-denominated bonds in Hong Kong. Genting Malaysia owns an 18% stake in Genting Hong Kong. Apart from owning Star Cruises, Genting Hong Kong is a co-owner of Resorts World Manila and also has a 50% stake in Norwegian Cruise Lines. (Starbiz)

Talam to sell land to associate
Talam Corp has proposed to dispose of two pieces of land totalling 10.35ha in Daerah Petaling, Selangor, to Trident Treasures SB for RM39.5m. Talam announced that the proposed disposal would enable it to improve its current liquidity position and reduce its borrowings. Trident Treasure, which is a 40% associate of Talam, plans to undertake the development of semi-detached houses, dwelling houses or equivalent on the land. “The net carrying value of the land as at 31 Jan is RM76.6m,” said Talam. (Starbiz)

IJM shortlisted for India highway project
IJM Corp is one of the 11 companies shortlisted for a mega inter-state highway project estimated to cost about RM4bn, according to local media reports. The 555km highway stretches from Kishangarh, near Jaipur, in Rajasthan to Ahmedabad, in Gujarat, via Udaipur. The public-private partnership project, involving six lanes, is tipped to be one of India's landmark highway project. The successful bidder is expected to design, finance, construct, operate and maintain the highway. India plans to construct 35,000km of highways under the National Highway Development Program over five years. (Starbiz)

Muhibbah gets RM338m job
Muhibbah Engineering has been awarded a RM338m contract by Northport for the development of a multi-purpose wharf and other facilities at Container Terminal 4. Muhibbah Engineering said the contract, due to commence in July this year and be completed in Mar 2014, is expected to contribute positively to the earnings and net assets of the group. (Starbiz)

Perisai gets nod to buy Intan Offshore
Perisai Petroleum Teknologi obtained shareholders' approval to acquire 51% of Singapore-based Intan Offshore SB for RM45.2m. “It is a good acquisition because we already have a long-term contract with the company. The risk is also minimum and the acquisition price is reasonable,” managing director Izzet Ishak mentioned last Friday. Izzet also said Perisai would conclude the purchase a 100% stake in Garuda Energy (L) Ltd for RM212mil by the end of next month. (Starbiz)

SPNB sets RM2.8bn target by 2016
Syarikat Perumahan Negara Bhd (SPNB), a wholly owned unit of the Minister of Finance, aims to achieve a total development value of RM2.8bn by 2016, if all the affordable housing units it plans to build are completed on schedule. MD Datuk Kamarul Rashdan Salleh said SPNB would be able to complete 36,095 affordable houses by 2013, of which 16,423 units have been sold. (Starbiz)

Proton: Nears deal with foreign carmaker. Proton Holdings Bhd will be finalising a collaboration with a foreign car maker next month, which is expected to bring up to RM800m of investment into the country. The tie-up involves using the partner's transmission for Proton's new engine. (Source: Business Times)

Sime Darby: New pay scheme to attract Malaysians too. Sime Darby Plantation Sdn Bhd expects its new pay scheme for estate and mill workers to attract not only foreigners but Malaysians as well. (Source: The Edge Financial Daily)

Plantation: Minister concerned over Aussie palm oil Bill. Plantation Industries and Commodities minister Tan Sri Bernard Dompok expressed grave concern on the passing of the Food Standards Amendment (Truth in Labelling - Palm Oil) Bill 2010 by the Australian Senate on Thursday. The Bill which is now under consideration by the Lower House, Australian Parliament, seeks to mandate the labeling of palm oil for the purpose of ensuring that consumers are provided with clear, accurate information about the inclusion of palm oil in foods. (Source: The Star) 

20110627 1316 Global Market Related News.

DJIA chart reading : correction range bound little downside biased.

Hang Seng chart reading : correction range bound downside biased.

Biggest Banks Must Hold 2.5 Percentage Points More Capital in Basel Accord (Source: Bloomberg)
Global regulators said banks deemed too big to fail must hold as much as 2.5 percentage points in additional capital as part of efforts to prevent another financial crisis. As many as 30 banks may face some level of surcharges, according to a person familiar with the discussions. The additional capital buffers will range from 1 percentage point to 2.5 percentage points, the Basel Committee on Banking Supervision said in a statement yesterday. From 28 to 30 banks, including as many as eight in the U.S., may face surcharges, said the person, who declined to be identified because the talks are private.

Central Banks Need to Raise Rates: BIS (Source: Bloomberg)
Central banks need to start raising interest rates to control inflation and may have to act faster than in the past, the Bank for International Settlements said. “Tighter global monetary policy is needed in order to contain inflation pressures and ward off financial stability risks,” the BIS said in its annual report published yesterday in Basel, Switzerland. “Central banks may have to be prepared to raise policy rates at a faster pace than in previous tightening episodes.”

Banks Should Seek Capital Boosts: BIS (Source: Bloomberg)
Banks should be pushed to meet the higher capital requirements before a series of deadlines starting in 2013, unless earlier introduction of the rules would threaten lending, the Bank for International Settlements said. The Basel Committee on Banking Supervision’s requirements, which will more than triple the core reserves that banks must hold to protect themselves from insolvency, are “the core regulatory response to problems revealed by the financial crisis,” the BIS said in its annual report. The stance of the group that acts as a bank for central banks echoes comments by Mervyn King, governor of the Bank of England, that U.K. lenders can “do more than just follow” the timetable for meeting the standards.

BIS Urges Europe to End Debate And Resolve Debt Crisis ‘Once And For All’ (Source: Bloomberg)
The Bank for International Settlements urged Europe to end its dithering and find a permanent solution to the sovereign debt crisis. “For well over a year, European policy makers have been scrambling to put together short-term fixes for the hardest-hit countries while debating how to design a viable and credible long-term solution,” the BIS said in its annual report published today in Basel, Switzerland. “They need to finish the job, once and for all.”

Asian Stocks Decline by Most in a Week on U.S. Economy, Greece (Source: Bloomberg)
Asian stocks fell by most in a week ahead of the release of data that will show the U.S. economy is faltering and on concern Greece may not meet bailout conditions, hurting the outlook for exporters. Toyota Motor Corp. (7203), the world’s No. 1 carmaker by sales, dropped 2.1 percent. Samsung Electronics Co., South Korea’s biggest exporter of consumer electronics, declined 2.2 percent in Seoul after Apple Inc. sued the company charging patent infringement. Commonwealth Bank of Australia Ltd., the nation’s largest lender by market value, slipped 1.3 percent after regulators raised capital adequacy requirements for the world’s biggest lenders.

U.S. Spending, Manufacturing Cooled in Slowdown (Source: Bloomberg)
Consumer spending probably climbed at the slowest pace in almost a year and manufacturing cooled as dimmer job prospects and elevated commodity costs weighed on the U.S. expansion, economists said reports this week will show. Purchases rose 0.1 percent in May, the smallest gain since June 2010, according to the median estimate of 63 economists in a Bloomberg News survey before a Commerce Department figures tomorrow. The disaster in Japan also held back American factories this month, a survey of purchasing managers may show.

U.S. Stocks Fall on Concern Debt Crisis in European Nations Will Intensify (Source: Bloomberg)
U.S. stocks fell this week, giving the Standard & Poor 500 Index its seventh loss in eight weeks, amid concern the European debt crisis isn’t contained. JPMorgan Chase & Co. (JPM) and Bank of America Corp. (BAC) fell at least 1.5 percent after European Central Bank President Jean- Claude Trichet said June 22 the turmoil threatens to infect banks. Micron Technology Inc. (MU) sank 7.9 percent, the most in the S&P 500, after reporting revenue and profit that missed analysts’ projections. Red Hat Inc. (RHT), the largest seller of the Linux operating system, jumped 9.3 percent after beating estimates with its earnings forecast.

A Plan to Tax the Foreign Income of U.S. Companies: Robert Pozen (Source: Bloomberg)
The current system for taxing foreign source income of U.S. corporations makes no sense. In theory, income earned by controlled foreign subsidiaries of American companies is taxed at the U.S. corporate rate of 35 percent; in practice, the Treasury receives no taxes on that income as long as it is held overseas.

Wen Sees China Inflation Capped at 5% (Source: Bloomberg)
Premier Wen Jiabao said China can keep full-year inflation within 5 percent, affirming forecasts that price gains will slow in the second half from the fastest pace in almost three years. “I see difficulties in reaching the full-year inflation target of 4 percent,” Wen said in comments broadcast today by Hong Kong-based Cable TV. “But it still can be kept below 5 percent after the efforts we have made.” He spoke at a Chinese community event in London, the broadcaster said.

China Stock Prices Signal Rally by Top Brokers (Source: Bloomberg)
The lowest Chinese stock valuations since economic growth collapsed three years ago are a sign to the nation’s biggest brokerages that it’s time to buy. The Shanghai Composite Index’s 6.2 percent retreat this quarter sent the gauge to 11.6 times estimated profit, data compiled by Bloomberg show. It took the global financial crisis and a decline in China’s growth rate to a seven-year low of 6.8 percent to push valuations this low in November 2008. The Shanghai gauge rebounded 49 percent in the next six months.

Wen Says China Will Continue to Buy European Government Debt, Support Euro (Source: Bloomberg)
Chinese Premier Wen Jiabao pledged support for Europe as the region copes with a sovereign debt crisis, saying China will remain an investor in European markets. “China is a long term investor in Europe’s sovereign debt market,” Wen said in translated comments at a press conference with Hungarian Prime Minister Viktor Orban in Budapest yesterday. “In recent years, we have increased by quite a big margin our holdings of government bonds. We will consistently continue to support Europe and the euro.”

China Is Long-Term Investor in EU Bonds: Wen (Source: Bloomberg)
Premier Wen Jiabao said China will keep investing in Europe’s sovereign bond market, providing a vote of confidence in the region roiled by the debt crisis. “China has actually increased the purchase of government bonds of some European countries, and we haven’t cut back on our euro holdings,” Wen told the British Broadcasting Corp. yesterday in an interview. These acts “show our confidence in the economies of Europe and the euro-zone.”

China Money Rate Slumps Most in a Month After Central Bank Pumps In Funds (Source: Bloomberg)
China’s money-market rate fell the most in more than a month on speculation the central bank’s injection of capital will help ease a cash shortage in the financial system. The People’s Bank of China added a net 87 billion yuan ($13.4 billion) of funds last week and has pumped in 467 billion yuan in the past six weeks. A total of 142 billion yuan of central bank bills and repurchase agreements will mature this week, compared with 88 billion yuan last week, according to Guo Caomin, a bond analyst at Industrial Bank Co. in Shanghai.

China banks must cut loans to property speculators
BEIJING, June 24 (Reuters) - China has reiterated orders to banks to curtail lending to property developers who are speculating on rising house prices to guard against overheating in the frothy sector.
Clarifying media reports that regulators have asked banks to reduce lending to developers, a media officer at China Banking Regulatory Commission said loan restrictions should only apply to companies suspected of carrying out speculation.

Shanghai Sea-Cargo Volume to Increase 10% Annually as Plants Move Inland (Source: Bloomberg)
Shanghai port, the world’s busiest for containers, expects volumes to rise about 10 percent annually for the next five years as manufacturers open plants in western and inland China in search of lower-cost labor. Rising production in these regions has benefited Shanghai because of increasing cargo volumes along the Yangtze river, Chen Xuyuan, president of harbor operator Shanghai International Port (Group) Co., said in a June 23 interview. The river, Asia’s longest, stretches 6,397 kilometers (3,975 miles) across China before meeting the East China Sea in Shanghai.

Japanese Stocks Drop Ahead of Greek Vote, U.S. Consumer Spending Report (Source: Bloomberg)
Japanese stocks fell ahead of a vote in Greece’s parliament that may forestall a European banking crisis and before a report expected to show slowing growth in U.S. consumer spending, dimming the outlook for export earnings.

Euro Exit Plan is ‘Probably Inevitable’: Soros (Source: Bloomberg)
Billionaire investor George Soros said it’s “probably inevitable” that a mechanism will be put in place to allow weaker economies to exit the euro. “There’s no arrangement for any countries leaving the euro, which in current circumstances is probably inevitable,” Soros, 80, said at a panel discussion in Vienna yesterday on whether liberal democracy is at risk in Europe. “We are on the verge of an economic collapse which starts, let’s say, in Greece, but it could easily spread. The financial system remains extremely vulnerable.”
Concern Greek lawmakers will fail to pass austerity measures to ensure the next installment of the nation’s bailout is roiling global markets and pushed the euro to a record-low against the Swiss franc last week. Greece is one of three euro- region members to have sought international bailouts amid the sovereign debt crisis.

U.K. Home Prices Fall For Second Month on Subdued Demand, Weak Confidence (Source: Bloomberg)
U.K. house prices fell for a second month in June as the growth in the supply of properties for sale outpaced demand, Hometrack Ltd. said. The average cost of a home slipped 0.1 percent from May, the London-based property researcher said in an e-mailed report today. From a year earlier, values were down 3.9 percent. In London, prices increased 0.2 percent on the month.

Greek deal lifts equities, euro up after Ifo
LONDON, June 24 (Reuters)- Greece's deal with international lenders for more money in return for more budget austerity lifted world equities on Friday and drained demand for safe-haven government bonds.
Oil prices rose slightly after tumbling to a 4-month low in the previous session on news of an International Energy Agency-coordinated release of emergency stockpiles.

FOREX-Euro rebounds after German IFO, but could struggle
LONDON, June 24 (Reuters) - The euro recouped losses on Friday after a better-than-expected German business sentiment survey lent it vital support but investors were wary of pushing it much higher as uncertainty lingered about Greece's ability to execute austerity plans.
The Munich-based Ifo think-tank said its closely watched business climate index rose to 114.5 in June from an originally reported 114.2 in May, easily beating expectations for a drop to 113.5.

20110627 1313 Global Commodities Related News.

Corn (Source: CME)
US corn futures finished lower as forecasts indicate crops in Midwest will be safe from severe weather into early July. "The core of the hot, dry weather remains south of the Midwest for the foreseeable future," says Mike Palmerino, meteorologist for Telvent DTN. Selling extended losses for the week after prices dropped the one-day limit Wednesday. "There are a lot of people who feel that the highs of the year are in for corn, especially with the benign weather," says Brian Hoops of Midwest Market Solutions. CBOT December corn drops 14c to $6.32 a bushel.

Wheat (Source: CME)
US wheat futures ended down as harvest advances in the Northern Hemisphere, bringing fresh supplies in from the fields. Kansas, the top U.S. winter-wheat growing state, saw "another day of great harvest weather," according to producers' group Kansas Wheat. That "means Kansas farmers are continuing to make rapid progress on the 2011 wheat crop," it says. Russia's agriculture ministry notes its grain harvest began yesterday. CBOT September wheat loses 8 1/4c to $6.61 a bushel; KCBT September slides 11c to $7.67 1/4; MGE September sinks 17c to $8.18 1/2.

Rice (Source: CME)
US rice futures settled lower on spillover selling from losses in the wheat market. Strength in the US dollar keeps lid on grains, as it makes dollar-denominated commodities less attractive to foreign buyers. Additional pressure stems from beneficial rains that eased concerns about dryness in India, a major rice producer, an analyst notes. Yet, the market traded within yesterday's range. CBOT September rice falls 23c to $14.50 1/2 per hundredweight.

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.

Hungry world needs sun to shine on US corn
CHICAGO, June 23 (Reuters) - Rarely have the inches of rainfall in Iowa or the hours of sunshine in Ohio been more pivotal to soaring global food prices and inflation than they will be this summer.
The U.S. Midwest needs good crop weather to produce a corn crop bountiful enough to fill export demand and to help rein in galloping inflation in countries like China and India.

Vietnam ships 3.63 mln tonnes rice so far in 2011
HANOI, June 24 (Reuters) - Vietnam, the world's second-largest rice exporter after Thailand, has shipped 3.63 million tonnes of the grain so far this year, up 14.5 percent from a year ago, the Vietnam Food Association said on Friday. 
The rise in shipments suggests Vietnam could export another record volume this year, which may help ease concern over adverse weather affecting global grain output.

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.

France sees G20 farm deal as a first step
PARIS, June 23 (Reuters) - A G20 farm deal agreed on Thursday is a good initial effort to tackle food price volatility and fight shortages and should encourage investment in agricultural output, France's agriculture minister said.
"This is the way I see this agreement. A first step, a positive step, and also an impetus that has been given to investment in agriculture," Bruno Le Maire told Reuters Insider TV shortly after G20 farm ministers agreed an action plan to curb food price volatility.

G20 clinches first farm deal, dodges regulation
PARIS, June 23 (Reuters) - G20 farm ministers agreed to tackle high food prices on Thursday in a deal that steered clear of divisive details on issues such as regulation, paving the way to more global cooperation on sensitive agricultural issues.
The action plan to boost agricultural output, food market transparency and policy coordination reflected many of France's ambitious proposals for its G20 presidency this year but it fell short of calls by Paris for a tough crackdown on speculators.

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.

Barley output to fall in France, rise in Spain
LONDON, June 23 (Reuters) - Smaller barley crops in France and Germany, where drought has reduced yields prospects, should be offset by the highest crop in three years in Spain where rain has been more plentiful, crop analysts said on Thursday.
Rains earlier this month in top European Union producer France have also led to better-than-expected yields in early harvesting of winter barley.

Wet weather cuts Canada wheat estimate, may cut more
WINNIPEG, Manitoba, June 23 (Reuters) - Canada's farmers planted less wheat this spring than planned due to wet weather, Statistics Canada reported on Thursday, but analysts say plantings are likely even smaller than the report indicates because flooding worsened after the agency's farmer survey.
Statscan reported that canola plantings rose from the earlier estimate to a record high, but the trade doubts the crop forecasts are realistic.

S.Africa slightly raises maize output forecast
JOHANNESBURG, June 23 (Reuters) - South Africa slightly raised its May 2010-April 2011 maize output forecast on Thursday, beating market expectations, boosted by a rise in yellow maize yields.
The government Crop Estimates Committee (CEC) expected a  harvest of 10.998 million tonnes of maize, little changed from the 10.99 million tonnes forecast in its previous estimate.

U.S Corn Shipments Reach Chinese Ports; More Buying Seen (Source: CME)
The first U.S. corn shipments of this year to China have arrived at Chinese ports, the U.S. Grains Council said Friday. China purchased 1 million metric tons of U.S. corn in March to replenish dwindling state reserves, fueling speculation that the country which turned a net corn importer last year, after a long gap of 15 years, may be scouting the market for more bargains. The imported corn arrived at the ports of Zhejiang and Shekou, the council said in a report. Two more shipments are expected at ports in Guangxi and Shenzhen next week, it said. "Council sources anticipate another eight-to-10 shipments to arrive over the next few months, intended for the national reserve," it said. "Reportedly, the shipments have begun unloading without any problems." China places a high policy premium on its grain security, and has sought to refill depleted state corn stockpile run low by successive auctions as Beijing tried to hold down inflationary pressures from late last year.
Chicago Board of Trade corn prices reached a record $7.72 a bushel in April fueled by suspicions at the time--only confirmed in May--about the Chinese purchase, which was driven in part by soaring Chinese demand for pork. Corn is a major feedmeal ingredient used by the sector. Chinese average wholesale pork prices reached a record on June 17. Global corn prices softened in June along with a weaker commodity complex, prompting market speculation that Chinese companies are again in the market for large corn purchases in the range of another 1 million tons. However, Cofco Ltd., one of China's grain trading vehicles, isn't involved in such possible purchases, an executive with a major grain trading company told Dow Jones Newswires this week. The other likely candidate for such a sizable state corn purchase, China Grain Reserves Corp., also called Sinograin, hasn't commented on its position. Sinograin bought the March cargoes tax-free in its role as state stockpiler.
Among major grains, China currently has the lowest stocks-to-use ratio in corn, an indicator of domestic stocks as a proportion of consumption. Based on U.S. Department of Agriculture data, Standard Chartered Bank analysts estimated last month that this ratio was around 35.7% in 2010-11, down sharply from 85% in 2000-01. China imported 12,010 tons of corn in May, more than double the volume in the same period last year. However, customs data also showed that China may be moving to diversify its sources of foreign corn away from the U.S., the world's largest corn producer and exporter. About three quarters of China's May corn shipments came from Myanmar--a volume that's more than double all of Myanmar's corn exports to China in 2010.

South Australian Grain Exports To Stay Strong -Viterra (Source: CME)
Grain exports from ports in South Australia state will remain strong in coming months, building on record shipments in the last six months, Viterra Inc. (VTA.AU), the state's main grain storage and export terminal operator, said Friday. "Viterra expects shipments from South Australia to remain strong given the significant crop in storage, the favourable commodity pricing environment and strong demand," Viterra's President for Southeast Asia, Rob Gordon, said in a statement. The company, which entered the domestic industry in 2009 after buying ABB Grain Ltd., reported record shipments of more than 4.3 million metric tons of grain from South Australian ports in the six months ended May 31. South Australian ports exported an average of 4.3 million tons of grain a year during the last 10 years, most of it wheat.
South Australia and Western Australia usually supply most of Australia's winter grain exports, but after record production last crop year ended March 31, the eastern states and South Australia are providing most of the nation's exports this year. Gordon said there is a highly competitive market for South Australian grain, with 14 active exporters accounting for the record shipments in the last six months. More than two thirds of exports were shipped by companies other than Viterra, whereas only three years ago, there was only one single-desk exporter of bulk wheat, AWB Ltd. (AWBZY). He said the result highlights strength in the South Australian grains industry, with the record exports indicating an efficient shipping program and effective management of shipping and port arrangements.

India Rice Sowing Falls On Delay In Monsoon (Source: CME)
Rice plantings in India fell 8.2% so far this summer season due to a two- to four-day delay in monsoon's arrival in the northern grain-bowl region, but a pickup in rains this week has calmed concerns over a fall in output. Rice sowing, which starts with the arrival of monsoon rains, fell to 1.90 million hectares until Friday from 2.07 million hectares a year earlier, government data showed. While the monsoon advanced well in time over the southern rice-producing hubs such as Andhra Pradesh, the rains were delayed over both eastern and northern centers, hurting sowing. Sowing of other major crops such as oilseeds and pulses also fell during the same period, although the area under sugar cane rose 4.5%, the data showed

China Expects 'Strong' Summer Grain Harvest, Minister Says (Source: CME)
China has reaped a "strong" summer grain harvest, Agriculture Minister Han Changfu said. Han, in a report on his ministry's website published Thursday, didn't specify an estimated volume. His comment is in line with general sentiment regarding the summer harvest, which consists largely of wheat, as officials have reported no major problems during the harvest, which is around 90% complete. "This year, China overcame severe drought and floods, and got another strong harvest," Han said in the statement, which quoted his remarks at a meeting of agriculture ministers of the Group of 20 industrialized and emerging nations in Paris. Last year's summer grain harvest fell 0.3% compared with the previous year, to 123.1 million metric tons, prompting concern about China's grain output and a boom in global agriculture commodity prices.

G20 Deal Disappoints Hopes For World Food Markets Shakeup (Source: CME)
A deal by agriculture ministers from the Group of 20 nations announced Thursday 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. 

Speculators Cut Agriculture Bets as Improving Weather Eases Supply Concern (Source: Bloomberg)
Funds slashed bets on rising agriculture prices by the most in three months, led by declines in holdings of wheat and coffee, as supply concerns eased amid signs the global economy may slow.

Supply to influence commodity prices more in Q3-BarCap
LONDON, June 23 (Reuters) - Supply trends will be a greater differentiator of commodity price performance in the third quarter, with crude oil, copper and corn among the most interesting plays, Barclays Capital said in its Global Outlook.
"The headwinds have got stronger for commodities, but our view is that now is not the time to underweight commodities exposure," said Kevin Norrish, managing director, commodities research at Barclays Capital speaking at a briefing in London on Thursday.

Hedge funds fear commodity bull run may be over
MONACO, June 23 (Reuters) - The price of gold, copper and other commodities may have peaked, say hedge fund managers meeting in Monaco this week, who are avoiding the sector for fear that last month's sharp sell-off may herald further falls.
Executives at the GAIM conference said gold and base metals, which have boomed in recent years thanks to rising demand and low interest rates, along with the recent wave of high-profile mining company flotations, looked over-priced.

Baltic index index rises, coal buying slower
LONDON, June 23 (Reuters) - The Baltic Exchange's main sea  freight index, which tracks rates to ship dry  commodities, turned positive on Thursday helped by light iron  ore cargo business to China on the larger capsizes vessels.
Analysts and brokers said mounting fleet growth and slower  imports of coal and iron ore due to high stocks were capping  potential for gains.

Asia Dry Bulk-Panamax rates to fall on weak China, Japan demand
SINGAPORE, June 23 (Reuters) - Rates for panamax dry bulk carriers on key Asian freight routes are expected to fall over the next week due to waning freight demand from China and Japan, shipbrokers said on Thursday.
In the capesize market, rates are seen steady to lower in the short term on expectations for a slowdown in iron ore shipments to China.

Liffe robusta coffee above 4-month low, sugar dips
LONDON, June 24 (Reuters) - Liffe robusta coffee edged up  above a four-month low in early trade on Friday, while ICE  arabicas were just above five-month lows, weighed by Brazil's  harvest.
ICE raw sugar futures edged down, underpinned by downward  revisions to Brazilian output forecasts, while cocoa firmed,  with upside weighed by ample supplies from West Africa.

Australia record cotton harvest nears completion
SYDNEY, June 24 (Reuters) - Australia's 2010/11 cotton harvest is likely to be completed by the end of June even though recent rain has slowed harvesting, Westpac Banking Corp  said in a crop outlook on Friday.
Australia, the world's third largest cotton exporter is expected to ship record quantities of the fibre in the coming year.
Westpac, the country's third largest bank said crop quality was generally good across irrigated and dryland areas in the cotton growing states of Queensland and New South Wales.

India to export 500,000 tonnes more sugar, NY prices fall
NEW DELHI, June 23 (Reuters) - India's government decided to allow another 500,000 tonnes of unrestricted sugar exports, doubling its overseas sales this year and sending international prices four percent lower.
Rural Development Minister Vilasrao Deshmukh announced the decision on Thursday for exports under the Open General Licence (OGL) scheme after a meeting of a panel of ministers which is empowered to take a final decision on the issue.

Asia Coal-Prices climb as rains pound Australian coalfields
SHANGHAI, June 24 (Reuters) - Australia's thermal coal prices rose by more than $2 per tonne from last week to tip past $121 per tonne, defying downward pressure in the broader energy complex, as heavy rains at coalfields in the Hunter Valley region slowed output.
Thermal coal on the globalCOAL Newcastle index for the week to date was $121.26 per tonne on Thursday, up from $118.93 a week earlier, as price negotiations between Australian suppliers and their Japanese customers continue.

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.
Oil crashed by more than $8 to a four-month low on Thursday after the world's consumer nations said they would band together to aid the global economic recovery by releasing emergency oil reserves for the third time ever.

Oil Falls on Outlook for Slowing Demand; IEA May Release More Stockpiles (Source: Bloomberg)
Oil fell in New York on concern the economic expansion in the U.S. is slowing and as the International Energy Agency said it’s prepared to release more stockpiles to stabilize prices. Futures dropped as much as 0.8 percent before reports this week that may show U.S. consumer spending climbed at the slowest pace in almost a year and manufacturing cooled. Greek lawmakers will vote on a five-year austerity plan that must pass for the cash-strapped nation to secure more international aid. The IEA, adviser to 28 nations, will act again if needed, Executive Director Nobuo Tanaka said in Beijing on June 25.

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.

Iron Ore-Key indexes at 3-month lows on thin Chinese buying
SHANGHAI/SINGAPORE, June 24 (Reuters) - Spot iron ore prices lost more ground on Friday as steel mills in top buyer China continued to limit purchases in anticipation of slackening steel demand, dragging down key global iron ore indexes to their lowest in nearly three months.
Weaker steel demand in the summer as well as high iron ore inventories at Chinese ports have dampened steel mills' interest to build up stockpiles.

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.

Aluminium smelter pipeline needs filling fast
MADRID/LONDON, June 24 (Reuters) - More primary aluminium smelter projects must make their way onto the drawing board soon to avert a looming gulf between supply and demand around the end of the decade.
Compounding the problem is the likely difficulty in opening new bauxite mines to feed those smelters due to the spread of resource nationalism and rising development costs.

China’s Copper Demand Figures Depressed by Usage of Scrap, Macquarie Says (Source: Bloomberg)
China’s copper demand figures have been depressed by usage of scrap metal and supplies taken out of bonded warehouses, Macquarie Group Ltd said in a report. Over the past two months, about 200,000 metric tons of copper may have been removed from bonded warehouses in China, which should be added to demand estimates, Macquarie said in a report dated tomorrow. Not counting that metal, apparent copper demand was down 8.5 percent in January through May from the same period last year, Macquarie said. “Another factor depressing refined copper consumption has been greater use of copper scrap as a substitute for refined copper but the most recent reports suggest availability of scrap is now greatly reduced,” Macquarie said.

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.

METALS-Copper ends lower in commodity-wide risk retreat
NEW YORK/LONDON, June 23 (Reuters) - Copper ended down for a second straight day on Thursday as a strengthening dollar and heightened concerns about slowing global economic growth triggered a wave of risk aversion across the commodities complex.
From a bleak assessment of U.S. growth prospects by Federal Reserve Chairman Ben Bernanke on Wednesday to slower factory sector growth in China and Europe this month, raw material demand prospects remained unclear, spurring investors to reduce exposure in everything from industrials to energies.

Gold steadies as investors mull Greek crisis
LONDON, June 24 (Reuters) - Gold eased on Friday, adding to losses after a fall of as much as 2 percent the day before, after a rally in the dollar gathered pace as investors grew increasingly doubtful over Greece's ability to remain solvent.
Gold was still set for its largest weekly decline since the so-called commodities "flash crash" of early May, which saw the raw materials complex stage its biggest weekly fall on record.

Gold May Drop as Greek Rescue Plan, Crude-Oil Decline Erodes Haven Demand (Source: Bloomberg)
Gold may extend losses, after capping the biggest weekly drop in seven weeks, as weaker oil prices and a pledge by European Union leaders to avert a Greek default slashed the metal’s appeal as a haven.

20110627 1311 Soy Oil & Palm Oil Related News.

Soy Oil chart reading : downside biased.

ITS CPO export up 17.3% to 1,252,780 tonnes for the period of 1~25 Jun 2011.
SGS CPO export up 15.1% to 1,270,888 tonnes for the period of 1~25 Jun 2011.

Soybeans (Source: CME)
US soy futures finished mostly lower, stumbling on favorable near-term crop weather, a firm US dollar and sagging demand. Market managed to stabilize despite drifting lower, finding strength after a steep break in prices, analysts said. Futures also drew support from traders' unwillingness to extract risk premium amid uncertainties of growing-season weather and acreage. However, with domestic and export demand slumping and corn prices sliding, buyers weren't willing to add risk exposure ahead of the weekend, analysts say. CBOT Nov soy dropped 0.6% to $13.09 1/4.

Soybean Meal/Oil (Source: CME)
Soy product futures were little changed, hovering in a range in unison with soybeans. The market lacked fresh news to provide guidance, leaving traders in a cautious mood, unwilling to take on added risk ahead of the weekend, analysts said. CBOT July soymeal finished down 0.2% at $339.90/short ton; Dec soyoil dropped 0.04% to 56.36 cents/pound.

Argentina Soy Export Tax Seen Surging Amid Steep Price Gains (Source: CME)
The Argentine government is expecting export taxes on soybeans and derivative products to jump to more than $8 billion this year, providing a revenue windfall to help balance high government spending in the run-up to presidential elections in October. Soybeans are Argentina's top crop and largest export product and carry a 35% export tax. The expected $8 billion in revenue is up sharply from the $6.3 billion in taxes on soybean, soyoil and soymeal exports collected last year, according to state news agency Telam, which cited a report from the agriculture ministry. A ministry spokesman didn't respond to a request for a copy of the report. Argentina is the world's third-largest soybean exporter and leads soymeal and soyoil shipments. The soy harvest is virtually complete, with production estimated at 49.6 million metric tons by the agriculture ministry. That is the second-largest crop on record.
Last season, farmers set the new high mark with 54.5 million tons, but now prices are up an average of 60% from a year ago, Telam said. In addition to boosting state coffers, that has provided a big boost to the farm sector and the rural economies. The total value of this season's soy crop is estimated at $24.6 billion, Telam said. Tax revenue has soared so far this year led by steep gains in sales taxes amid a consumer spending boom. May tax revenue hit a new record, climbing almost 30% on the year to 51 billion pesos ($12 billion).

Canada farmers plan record canola, more wheat area
June 23 (Reuters) - Canadian farmers may plant 17.7 percent more canola this year than the record area planted in 2010, while they expect to plant 11.9 percent more wheat in 2011, according to a Statistics Canada survey released on Thursday.   
Statscan surveyed farmers between March 24 and March 31 so the survey does not reflect the heavy rains and worsening flood conditions since then and likely overestimates plantings, traders and analysts said this week. Floods will leave 6 to 8 million acres unplanted -- the second highest fallow area due to excessive moisture in 50 years -- according to the Canadian Wheat Board.

Palm oil hits new 7-mth low as stocks grow
KUALA LUMPUR, June 24 (Reuters) - Malaysian palm oil dropped to a seven-month low on Friday as expectations that a higher output cycle will lift stocks offset broad gains in agriculture markets.
"We are looking for better export data next week to give some support but it will not be much," said a trader with a foreign commodities brokerage.