Monday, July 11, 2011

20110711 1821 FCPO EOD Daily Chart Study.

FCPO closed : 3074, changed : -3 points, volume : lower.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : rising higher, seller closing position as buyer testing market.
Support : 3070, 3050, 3020, 2970 level.
Resistance : 3100, 3150, 3200, 3250 level.
Comment :
FCPO closed 3 ticks lower with lower volume participation while overnight soy oil closed lower and currently trading weaker.
MPOB reported improved and better than estimates Jun 2011 data with better export, lower stock and production level but on the other hand, both cargo surveyors reported slowing down export data for the period of 1~10 July pressured price to trade lower.
Daily chart formed a down doji bar candle closed near middle Bollinger band level after market opened higher, edge upward tested above resistance level and slide downwards all the day near support level followed by last hour partial recovery to closed off the low of the day.
Chart reading suggesting a correction range bound downside biased market development testing support and resistance level with MACD indicator having positive cross up.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110711 1741 FKLI EOD Daily Chart Study.

FKLI closed : 1580.5 changed : -12.5 points, volume : lower.
Bollinger band reading : pullback correction upside biased.
MACD Histrogram : weakening, buyer taking profit.
Support : 1580, 1565, 1550, 1540 level.
Resistance : 1590, 1600, 1610, 1620 level.
Comment :
FKLI closed recorded loss with relatively low volume transacted doing 8 points discount compare to cash market that closed lower while Asia markets ended lower except Shanghai exchange and European markets currently trading in negative zone with last Friday U.S. market closed lower.
Negative news pouring the markets worldwide with U.S. jobless claim rise more than expected signalling slowing growth, China inflation rate accelerated at fastest pace in three years recording 6.2% and in Euro zone, concern grew that the region’s debt crisis will spread to Italy.
Daily chart formed a wide range down bar candle positioned in between upper and middle Bollinger band level after market opened little lower, slide downward slowly through out the day followed by last minutes price plunge to closed near the low of the day as buyer decided to lock in profit avoiding too much exposure with the current negative market sentiment development.
Technical reading calling for a pullback correction within an upside biased market development possible testing lower support level 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.

20110711 1528 Global Market & Commodities Related News.

Equities drop on weak data; euro zone meeting eyed
HONG KONG, July 11 (Reuters) - Asian stocks dropped on Monday as a spate of weak economic data from China and the U.S. renewed concerns about the health of the global economy although sharp declines look unlikely before an emergency meeting to stem the spreading debt crisis.
The euro weakened to a two-week low versus the dollar and Swiss franc amid worries that the debt crisis was spreading to Italy, the region's third largest economy.

India, China set for cotton wars on stubborn yields
MUMBAI, July 11 (Reuters) - India, the world's second biggest exporter of cotton, could turn into an importer within three or four years as production peaks out because of falling yields, forcing the country's textile mills to compete for supplies with top importer China.
Despite rising acreage, India's cotton yields are down to about 475 kg per hectare, or 38 percent below the global average, as plants need to be spaced widely for hand picking, in contrast to other leading growers, such as the United States and Australia, which use machines.

Climate impact threatens biodiesel future in EU
BRUSSELS, July 8 (Reuters) - Europe's biodiesel industry could be wiped out by EU plans to tackle the unwanted side effects of biofuel production, after studies showed few climate benefits, four papers obtained by Reuters show.
Europe's world-leading $13 billion biodiesel industry, which has boomed in the wake of a decision by Brussels policymakers in 2003 to promote it, is now on the verge of being legislated out of existence after the studies revealed biodiesel's indirect impact cancels out most of its benefits.

Top commodities funds take fresh beating in June
NEW YORK, July 7 (Reuters) - Two of the biggest commodity hedge funds suffered a second month of painful losses in June, falling victim to a rout across raw goods markets, a hedge fund investor told Reuters on Thursday.
Clive Capital, a top commodities fund with more than $4 billion under management, and energy-focused BlueGold, with around $2 billion, hit a rough patch in May and June due in part to a series of sharp drops in oil prices, said the investor, who is familiar with the funds' returns.

U.S. wheat slips on harvest pressure, corn down
SINGAPORE, July 11 (Reuters) - Chicago corn and wheat futures slid on Monday as weak economic data from China and the United States weighed, following last week's gains that were led by strong physical demand.
"In terms what we are seeing in wider markets, we have crude oil trading touch lower and U.S. dollar higher, which is continuation of risk aversion that swept through global markets on Friday," said Luke Mathews, commodity strategist at Commonwealth Bank of Australia.

Speculators' bullish corn bets smallest in a year-CFTC
CHICAGO, July 8 (Reuters) - Speculators, including hedge funds, are exiting grain markets in droves as a year-long rally falters, slashing their bullish bets to the lowest in nearly a year, government data showed on Friday.
The speculators cut their net long positions in Chicago Board of Trade corn futures  and options by 20 percent in the week ended July 5 to the smallest since July 2010, data from the CFTC's Commitment of Traders showed.

U.S. spring wheat production limited by floods
CHICAGO, July 8 (Reuters) - U.S. spring wheat production is expected to fall to the lowest level in three years as flooding throughout the northern U.S. Plains curtailed planting and reduced yield potential, analysts said.
A Reuters poll of analysts predicted that an upcoming U.S. Agriculture Department report will forecast spring wheat production (excluding durum) at 551 million bushels, the smallest since 2008 when flooding also hampered farmers' efforts.

Andersons add cheap US wheat to corn-based ethanol
KANSAS CITY, Mo.,July 8 (Reuters) - The Andersons Inc , a major U.S. ethanol producer, has started mixing a small percentage of wheat along with costlier corn to make the alternative fuel, diversifying its sourcing amid increasingly tight corn supplies.
Andersons, which operates three U.S. ethanol plants with total capacity of 300 million gallons, confirmed it has started using soft red winter wheat along with corn, taking advantage of a rare inversion in prices for the grains.

Argentina wheat sowing speeds up, good crop weather
BUENOS AIRES, July 8 (Reuters) - Favorable crop weather allowed Argentine farmers to forge ahead with 2011/12 wheat planting last week, the government said on Friday.
Argentina is a leading wheat grower and exports the bulk of its crop to neighboring Brazil. Planting began last month and is progressing at a good pace despite some dryness.

US Grain Exports-Corn sales at 3-mth top as prices fall
CHICAGO, July 8 (Reuters) - U.S. corn export sales surged to a three-month high last week, topping the high end of analyst estimates, as a record drop in corn futures spurred demand, U.S. Agriculture Department data showed on Friday.
Net sales of U.S. corn, combined old- and new-crop, were 1.49 million tonnes for the week ended June 30, the largest sales since March, USDA said.

Ivorian cocoa prices vary, smuggling persists -farmers
ABIDJAN, July 8 (Reuters) - Cocoa farmgate prices in Ivory Coast's main growing regions varied last week, as supply tightened in some while lower quality depressed prices elsewhere amid a persistent smuggling, farmers said on Friday.
In the western region of Bouafle, farmers said the average price was ranging between 650 CFA francs ($1.42) and 700 francs ($1.52) per kg last week compared with between 600 and 650 francs the previous week as supply was scarce in the region.

Oil drops on China, U.S. economy concerns
SINGAPORE, July 11 (Reuters) - Oil fell for a second day on Monday after a drop in China's crude imports and disappointing U.S. employment data rekindled concerns of a demand slowdown at the world's top two energy consumers.
"It's a combination of both pieces of news, the world's two biggest consumers with not good economic data," Le Brun said from Sydney.

Coal miners say Australia carbon tax treatment unfair
SYDNEY, July 10 (Reuters) - Australia's powerful coal mining industry on Sunday warned it was being unfairly singled out under the country's new carbon emissions trading scheme, predicting it will lead to job losses and fewer collieries at a time when buyers are paying top dollar for coal.
Xstrata , one of the country's biggest coal mining companies, said it was "disappointed at the government's lack of genuine consultation" before unveiling its plan to slap a carbon tax of A$23 a tonne on its 500 worst polluters.

Iran says OPEC will not lift output ceiling
TEHRAN, July 9 (Reuters) - Iran's caretaker oil minister said on Saturday that OPEC was opposed to any increase in output ceilings in the absence of "well-studied justifications".
"Iran's policy as head of OPEC is to maintain the production ceiling of this organisation," Mohammad Aliabadi was quoted as saying by the semi-official Mehr news agency.

BP wants future spill claims limited
HOUSTON, July 8 (Reuters) - BP Plc   wants to limit future claims related to its Gulf of Mexico oil spill disaster as the region's economy recovers, the oil company said in a document made public on Friday.
The Gulf economy is strong and "there is no basis to assume that claimants, with very limited exceptions, will incur a future loss related to the oil spill," BP said in a paper filed with the Gulf Coast Claims Facility (GCCF).

LME copper steady; U.S. jobs, China inflation weigh
SHANGHAI, July 11 (Reuters) - LME copper was steady on Monday, supported by continuing supply disruptions and a rise in June copper imports by China, but  gloomy data on U.S. jobs and Chinese inflation weigh slightly on sentiment.                  
"Today, there is an absence of new negative macroeconomic data, so copper price movements are directed mainly by its fundamentals. For now, the presence of supply disruption is supportive," said Dongwu Futures analyst Song Lu.

Top copper miner Codelco braces for 24-hour strike
SANTIAGO, July 11 (Reuters) - Thousands of Codelco workers geared up for their first national strike in nearly two decades on Monday, raising the stakes in a feud with the Chilean government over the future of the world's top copper miner.
The 24-hour strike is not seen hurting the annual output target of the state copper giant, but could spell more labor trouble for Codelco and Chilean President Sebastian Pinera, who is already struggling with student demonstrations.

China's copper demand stages comeback in June
SHANGHAI, July 10 (Reuters) - China's copper staged a strong comeback in June, but the outlook was marred by falls in a list of other key commodities, showing that Beijing's cooling measures were weighing on the economy.  
Crude oil imports fell 11.5 percent from a year ago to their lowest in eight months, while aluminium dropped about 14 percent, iron ore was down 4.3 percent and soybean shed 5.7 percent from May.  

Australian uranium miner gets takeover bid from China's Sichuan Hanlong
SYDNEY, July 11 (Reuters) - China's Sichuan Hanlong Group has bid A$144 million ($154.9 million) for Australian uranium miner Bannerman Resources Ltd , the Australian firm said on Monday.
The bid at A$0.612 a share represents a 59 percent premium to Bannerman's Friday closing.

Gold steady on weak U.S. data, Europe debt woes
SINGAPORE, July 11 (Reuters) - Spot gold was steady on Monday, as the dimmed outlook for the U.S. economy and persistent worries about euro zone nations' debt problem supported sentiment.
"If we see something that confirms further the weakness of U.S. economy we may see gold benefit from that," said Darren Heathcote, head of trading at Investec Australia.

20110711 1137 Global Market & Commodities Related News.

GLOBAL MARKETS: Dismal US jobs data hits stocks; Treasuries soar
NEW YORK, July 8 (Reuters) - Stock markets around the world fell  and oil prices slumped as a dismal report on America's labor market disappointed investors expecting a stronger recovery in the world's largest economy.
"It's a terrible number. There is no good news you can glean from it," said David Semmens, U.S. economist at Standard Chartered in New York.

OIL: Oil dips on jobs data; Brent/US spread at $22
NEW YORK, July 8 (Reuters) - Oil ended a strong week on a downbeat note  as a dismal U.S. jobs report cast a pall on the economic outlook.
"The employment data has weighed mightily on oil prices. Employment trends are key to future demand, and this is now two months of poor data," said John Kilduff, partner at hedge fund Again Capital LLC in New York.

NATURAL GAS: Natural gas rises near 2 pct in weekend short cover
NEW YORK, July 8 (Reuters) - U.S. natural gas futures gained nearly 2 percent , rising in some pre-weekend short covering ahead of more hot weather and this week's stir in tropical activity.
"The natural gas market is seeing a modest price recovery after Thursday's storage disappointment and is getting some help from an 11- to 15-day temperature outlook that features above-average temperatures across most of the continental U.S.," said Citi Futures Perspective energy analyst Tim Evans.

EURO COAL: Futures edge up but fail to break $130/mt
LONDON, July 8 (Reuters) - European coal futures moved slightly upward  but lacked clear price signals in any direction ahead of the weekend.
"The market tried to push above $130 at the beginning of July but once we hit that mark, too many offers were given to sustain that price," one financial trader said.

COMMODITIES: Markets slip on weak U.S. jobs data
NEW YORK, July 8 (Reuters) - Oil and industrial metals fell
as U.S. jobs data for June showed employers hired the fewest workers in nine months, making investors jittery about the outlook for raw materials demand.
"It's a terrible number, there is no good news you can glean from it," said David Semmens, an economist at Standard Chartered in New York. "It shows the labor market is still lagging improvements in the overall economy."

20110711 1115 Global Economic Related News.

China: Growth may slow as Wen faces limited scope for response
China’s economy probably grew the least in almost two years last quarter, contributing to a global weakening that Premier Wen Jiabao confronts with more limited scope for policy response than during the 2008 world recession. The government is forecast to report 13 July gross domestic product rose 9.3% from a year before, according to the median estimate in a Bloomberg survey, down from 9.7% the previous quarter. With data showing consumer prices climbed the most in three years in June, any easing in the central bank’s monetary stance risks escalating price pressures. (Bloomberg)

China: Trade surplus hits seven-month high in June as imports slow. China's trade surplus widened more than forecast to USD 22.3b in June. The surplus was USD 13.1b the previous month and USD 20b a year earlier.
(Source: Bloomberg)

Japan: Part-time pay drop signals weak rebound

Wages for part-time workers have dropped, pointing to broader downturns in salaries and employment that will probably curb consumer spending just as a recovery from the 11 March earthquake and tsunami was taking hold. Manufacturers, whose exports have been the driving force of the world’s third-largest economy, have started recovering from the March temblor, according to some data. Industrial production rose at the fastest pace in more than 50 years in May from a month earlier and declines in retail sales have also eased -- supporting predictions that the economy would start growing again by year’s end. Cash earnings, a measure of all workers’ pay, rose 1.1% in May from a year earlier, the first gain in three months, the Labor Ministry said. The increase may have been exaggerated by one-time payouts companies made to people who worked after the disaster. (Bloomberg)

Japan: Current account surplus narrowed in May. The gap shrank 51.7% YoY to JPY 590.7b (USD 7.3b), the Finance Ministry said in Tokyo. The surplus decreased 69.5% YoY in April. (Source: Bloomberg)

Indonesia: Central bank may refrain from raising rates on slowing inflation

Indonesia’s central bank will probably keep interest rates unchanged for a fifth month after inflation eased, delaying an increase as risks emerge of a slowdown in global growth. Bank Indonesia will hold its reference rate at 6.75%, according to all 14 economists surveyed by Bloomberg News ahead of a decision due in Jakarta tomorrow. Policy makers last increased borrowing costs in February, the only move this year. The Rupiah is the second-biggest gainer in Asia this year, helping cap import costs and restrain inflation. That has allowed central bank Governor Darmin Nasution to extend Indonesia’s pause in monetary tightening as Europe’s debt crisis and slowing US growth threaten Asia’s exports, even as neighbors from Thailand to India and China kept raising rates. (Bloomberg)

India: Indian exports climbed 46.4% in June, rate pressure remains

India’s export growth slowed in June from a seven-year high, according to figures released by the commerce ministry’s top bureaucrat, an easing that may be insufficient to prevent further interest-rate increases. Merchandise shipments from the country rose 46.4% to USD29.2bn in June from a year earlier, commerce secretary Rahul Khullar said in New Delhi. Exports jumped 56.9% in May from a year earlier, the biggest gain since March 2004, according to data compiled by Bloomberg from previously reported figures. India’s central bank may continue to increase interest rates until inflation is “under control,” K.C. Chakrabarty, a deputy governor of the Reserve Bank of India, said in New Delhi. The Finance Minister, Pranab Mukherjee said inflation may have accelerated in June even after gains in food prices moderated. (Bloomberg)

Germany: Exports increased more than economists forecast in May, adding to signs the sovereign debt crisis isn't harming Europe's largest economy. Exports, adjusted for work days and seasonal changes, increased 4.3% MoM from April, when they fell 5.6% MoM. Imports rose 3.7% MoM from the previous month. (Source: Bloomberg)

US: Payrolls rise 18,000, unemployment rate climbs to 9.2%

US employers added 18,000 workers in June, the fewest in nine months, and the unemployment rate unexpectedly climbed, indicating a struggling labor market. The increase in payrolls followed a 25,000 gain that was less than half the rise initially estimated, Labor Department data showed in Washington. The median estimate in a Bloomberg News survey called for a June gain of 105,000. The unemployment rate rose to 9.2%, the highest level this year. Hiring by companies, which excludes government agencies, was the weakest since May 2010. (Bloomberg)

20110711 1113 Malaysia Corporate Related News.

KLCI chart reading :
pullback correction upside biased.

PLUS extends deadline
PLUS Expressways has extended the period to fulfill a condition precedent relating to its takeover by the Employees Provident Fund (EPF) and Khazanah Nasional via UEM Group to 30 Sept. Its announcement to Bursa Malaysia did not clearly disclose the condition being extended. The announcement said: “Certain approvals or consents required to be procured by PLUS and the joint offerors are still pending.” However sources close to the deal explain that this condition entails the toll concession agreement between PLUS and the Government. (Star Bizweek)

Berjaya Corp’s plan to privatise HK-listed Cosway puts Tan in the news again
Tan Sri Vincent Tan Chee Yioun is in the news again. Tan’s Berjaya Corp (BCorp) is seeking to privatise Cosway Corp (CCL), just about 20 months after listing the profitable direct selling business on the Hong Kong Stock Exchange (HKSE). BCorp had first listed the company on Bursa Malaysia back in 1990 but decided to privatise it in 2007 because the owners felt that the company was undervalued on the market. BCorp then listed CCL on HKSE in 2009 to tap into the massive China market with its consumer product. (Star BizWeek)

First MRT line likely to cost RM20bn
Although the actual cost of the country’s first mass rapid transit (MRT) system will be disclosed in September due to a 50% reduction in land acquisition and other tweaks to the initial alignment, estimates have put the price tag for the first three lines at around RM20bn. Land Public Transport Commission (SPAD) CEO Mohd Nur Kamal said more time was needed to finalise the cost as the revised alignment was only recently approved given the changes to accommodate public feedback. (Star Bizweek) Please see attached report.

No deal yet on Temasek’s AFG stake sale
While speculation is rife that the Singapore government’s investment arm Temasek Holdings and co-investor Langkah Bahagia SB are keen to divest stake of close to 30% in Alliance Financial Group (AFG), sources said they have yet to seek the advice of investment banks on how to proceed. “No mandate has been given out yet on this deal,’ sources familiar with the situation said. Market talk has it that Temasek may look to sell its stake in AFG, hot on heels of its partial stakes divestment in two of China’s biggest banks – Bank of China and China Construction Bank – announced last week. (Star Bizweek)

Catcha Media sees a big catch in online advertising
Catcha Media Bhd, one of the country's largest new media companies, is planning to launch websites for all its magazines as part of its plan to grow online advertising business. Group CEO Patrick Grove said currently, there are four magazines that have their own websites namely Juice, Home-Pride, Mint and Clive. "Juice just launched its own website. Stuff and Prestige magazine will be launching its websites this year. So when we launch these websites, they will get integrated into the MSN platform," he said. (BT)

MASkargo plans expansion beyond Malaysian shores
Malaysia Airlines Cargo SB (MASkargo), the cargo arm of national carrier Malaysia Airlines (MAS), plans to expand its integrated cargo handling services beyond the Malaysian borders, hopefully within the next 12 months, eyeing China as a possible maiden overseas hubbing initiative. To date, the company’s ground handling hubs are based locally, which are in KL International Airport (KLIA) in Sepang, Penang, Kota Kinabalu in Sabah and Kuching, Sarawak. Looking at the initiatives taken by the Chinese government in beefing up its manufacturing sector, particularly with the opening of new areas within the inland areas of Chengdu and Chongqin, MASkargo MD Shahari Sulaiman said it is timely for the company to have a stronger permanent footprint in one of the world’s fastest growing economies. (Malaysian Reserve)

Bumi Armada may have raised RM2.7bn in IPO
Bumi Armada, a company controlled by billionaire T. Ananda Krishnan, raised RM2.66bn after pricing the shares at the upper half of its indicative range in Malaysia’s biggest IPO this year, two people familiar with the matter said. The oil and gas services company sold shares at RM3.03 each, said the people who asked not to be named as the information is still private. (Star Bizweek)

Latexx: Due diligence on YTY almost over. Latexx Partners Bhd is poised to complete a due diligence on YTY Industry Holdings Sdn Bhd by as early as next month. Latexx is proposing to take over YTY for RM1.25b by paying 30% in cash, with the balance of the assets being swapped for Latexx shares. (Source: Business Times)

Ivory: Surges on hope of land award. Ivory Properties Group Bhd's share price has surged on anticipation that the Penang state government will decide this week if it is to award the company the rights to help develop 40ha of land in Bayan Mutiara. (Source: Business Times)

Dijaya: TAEL One buys more shares. TAEL One Partners Lts, a Cayman Islands-incorporated private equity firm, has raised its stake in Dijaya Corp Bhd to 7.25% after acquiring another 10.3m shares last Friday. (Source: The Sun)

O&G: OM to build RM210m plant in Q4. OM Holdings Ltd (OMH) expects to start construction of its proposed USD70m (RM210m) manganese smelting and sintering plant in Tanjung Langsat Industrial Complex, Johor Baru in the fourth quarter this year. The Australian public-listed company said land clearing works for the project site is now carried out by Johor Corp. (Source: The Star)

20110711 1100 Global Market Related News.

DJIA chart reading :  pullback correction upside biased. 

Hang Seng chart reading : side way range bound.

Citigroup Cuts Forecast for Emerging-Market Stock Index, Stays ‘Bullish’ (Source: Bloomberg)
Emerging-markets stocks are likely to rise less than previously forecast this year as weaker sentiment means that developing-nation equities may be unable to achieve a “clear valuation premium,” Citigroup Inc. said. The brokerage cut its end-2011 forecast for the MSCI Emerging Markets Index to 1,400, compared with an earlier estimate of 1,500 and the July 8 close of 1,163.93, analysts led by New York-based Geoffrey Dennis wrote in a July 8 report. They reiterated their “bullish” stance on developing-nation shares.

Retail Sales in U.S. Probably Slowed by Unemployment, Weaker Auto Demand (Source: Bloomberg)
Sales at U.S. retailers probably stagnated in June, reflecting declining auto demand and rising unemployment, economists said before reports this week. The projected unchanged reading in purchases would follow a 0.2 percent May decrease, according to the median forecast in a Bloomberg News survey ahead of Commerce Department figures July 14. Another report may show the cost of living decreased for the first time in a year as fuel prices retreated.

Geithner Wants Biggest Budget-Deficit Cut Possible Now, No Short-Term Deal (Source: Bloomberg)
Treasury Secretary Timothy F. Geithner said the Obama administration wants the most comprehensive deficit-cutting deal possible and reiterated that failing to raise the debt limit could have “catastrophic” consequences. “We have to find a way to pass an agreement, but the president is going to keep working toward the largest deal we can do, because that’s the right thing for the country,” Geithner said today on NBC’s “Meet the Press” program. Obama and congressional leaders are seeking a deficit- slashing deal to pave the way for a vote in Congress to increase the government’s $14.3 trillion debt limit, a move the Treasury Department says is needed by Aug. 2 to avert a default on the nation’s financial obligations.

U.S. Payrolls Grow at Slowest Pace in Nine Months as Jobless Rate Climbs (Source: Bloomberg)
American employers added jobs at the slowest pace in nine months in June and the unemployment rate unexpectedly climbed to 9.2 percent, sending global stocks sliding on concern the world’s biggest economy is faltering. Employers increased payrolls by 18,000 workers, less than the most pessimistic forecast in a Bloomberg News survey of economists, which called for growth of 105,000. The increase followed a 25,000 gain that was less than half the initial estimate. Hiring by companies was the weakest since May 2010. “This is a very fragile state for the U.S. labor market,” said John Herrmann, a senior fixed-income strategist at State Street Global Markets LLC in Boston. “It suggests that the overall recovery remains somewhat tenuous.

Treasuries Rise on Speculation Unemployment Curbed June Consumer Spending (Source: Bloomberg)
Treasuries rose for a second day, pushing yields to the lowest level this month, on speculation a government report this week will show U.S. retail sales failed to grow in June as unemployment rose. Thirty-day federal funds futures contracts for delivery in December 2012 yielded 0.50 percent, indicating investors expect the Federal Reserve will wait until then to raise interest rates. The yield has declined from 1 percent in May as traders bet the central bank will postpone increasing borrowing costs.

Payrolls Grow at Slowest Pace in Nine Months as Unemployment Rate Climbs (Source: Bloomberg)
The U.S. unemployment rate rose for a third straight month in June, hiring slowed and earnings stagnated, pointing to an economy lacking momentum entering the second half of the year. The 9.2 percent jobless rate in June was the highest this year, Labor Department figures showed yesterday. Employers added 18,000 workers to payrolls, the fewest in nine months and less than the most pessimistic forecast in a Bloomberg News survey of economists.

China’s CPI Jump Won’t Derail Three-Week Stocks Rally, Shenyin, BofA Say (Source: Bloomberg)
The jump in Chinese inflation last month is unlikely to derail a three-week rally in the nation’s equities, according to Shenyin & Wanguo Securities Co. and Bank of America-Merrill Lynch. China’s consumer prices climbed to a three-year high of 6.4 percent in June, the statistics bureau said on July 9. That exceeded the previous month’s 5.5 percent and the government’s full-year target of 4 percent. The benchmark Shanghai Composite Index advanced for a third week, erasing most of this year’s losses, on speculation the government will refrain from further monetary tightening as the economy slows after boosting interest rates last week for the third time this year.

China Inflation Surging Past 6% Leaves Wen With ‘Delicate’ Balancing Act (Source: Bloomberg)
China’s inflation accelerated to the fastest pace in three years, highlighting the challenge for policy makers of sustaining growth while taming prices. The consumer price index increased 6.4 percent in June, the National Bureau of Statistics said yesterday, exceeding the 6.2 percent median estimate of economists surveyed by Bloomberg News. The world’s second-biggest economy is already cooling after the government curbed lending by boosting lenders’ reserve requirements to a record and raising interest rates five times since September, most recently on July 6. A deeper-than- anticipated slowdown in China would curtail a global expansion imperiled by a potential default by Greece and signs the U.S. recovery is faltering.

China Trade Surplus Climbs to Seven-Month High as Import Growth Moderates (Source: Bloomberg)
China’s trade surplus widened more than forecast to $22.3 billion in June, the highest level in seven months, as imports grew at the slowest pace since 2009. The gap exceeded all the 21 estimates in a Bloomberg News survey of economists, with the median projection at $14.2 billion. The surplus was $13.1 billion the previous month and $20 billion a year earlier. The customs bureau released the data in an online webcast today.

China Inflation Surging to Fastest in 3 Years Weakens Case for Rate Pause (Source: Bloomberg)
China’s inflation rose to a three- year high of 6.4 percent in June, a level that some analysts said may represent the peak for 2011 as price gains moderate in the second half. The pace exceeded the 6.2 percent median estimate in a Bloomberg News survey of 19 economists. Producer prices were unchanged from the previous month, a report on the statistics bureau website showed today.

Slow Growth Leaves Wen With Few Options (Source: Bloomberg)
China’s economy probably grew the least in almost two years last quarter, contributing to a global weakening that Premier Wen Jiabao confronts with more limited scope for policy response than during the 2008 world recession. The government is forecast to report July 13 gross domestic product rose 9.3 percent from a year before, according to the median estimate in a Bloomberg survey, down from 9.7 percent the previous quarter. With data two days ago showing consumer prices climbed the most in three years in June, any easing in the central bank’s monetary stance risks escalating price pressures.

Shanghai Stocks Drop as U.S. Jobs Slump, China Inflation Data Hurt Outlook (Source: Bloomberg)
China’s stocks fell for the third time in four days on concern slumping U.S. jobs growth, Europe’s worsening debt crisis and faster Chinese inflation may hurt the global economic recovery. Industrial & Commercial Bank of China (601398) Ltd. and Poly Real Estate Group Co. paced declines among financial companies on speculation the government will intensify monetary tightening measures after consumer prices surged to a three-year high in June. SAIC Motor Corp. led an advance for automakers after China’s passenger-car sales climbed last month.

China may cut spending on strategic industries
BEIJING, July 7 (Reuters) - China may rein in plans to invest heavily in seven new strategic industries, including high speed rail and wind power, scaling back cutting-edge projects for industries suffering from old-fashioned problems such as corruption and overcapacity, sources said.
Beijing originally planned to invest up to $1.5 trillion over the next five years in the seven sectors, hoping they would grow into a pillar of economic growth and help shift the world's second-largest economy away from one centered on manufacturing cheap goods.

Japanese Stocks Fall on U.S. Hiring Data (Source: Bloomberg)
Japanese stocks fell the most in two weeks as U.S. unemployment unexpectedly increased, dimming the outlook for a global economic recovery, driving down exporters’ shares and pushing down the price of commodities. Toyota Motor Corp. (7203), which counts North America as its largest market, dropped 0.4 percent after U.S. payrolls grew at the slowest pace in nine months. Canon Inc., a camera maker that gets more than 80 percent of its revenue outside Japan, retreated 0.6 percent, after the yen strengthened. Mitsubishi Corp., Japan’s largest commodities trader, sank 0.3 percent after oil and metal prices dropped.

Indonesia May Avoid Rate Increase as Slowing Inflation Gives ‘Wiggle Room’ (Source: Bloomberg)
Indonesia’s central bank will probably keep interest rates unchanged for a fifth month after inflation eased, delaying an increase as risks emerge of a slowdown in global growth. Bank Indonesia will hold its reference rate at 6.75 percent, according to all 14 economists surveyed by Bloomberg News ahead of a decision due in Jakarta tomorrow. Policy makers last increased borrowing costs in February, the only move this year.

Europe Needs Options to Cut Greek Debt-Service Costs, Sweden’s Borg Says (Source: Bloomberg)
The European Union needs to look for ways of reducing Greece’s debt servicing costs, Swedish Finance Minister Anders Borg said, suggesting a shift in focus as the bloc begins considering additional aid for the country. More than a year after the EU and the International Monetary Fund extended Greece 110 billion euros ($157 billion) in aid, they’re considering options for additional support as the country’s borrowing costs and indebtedness continue to grow.

Euro Falls to Two-Week Low on Debt Concern (Source: Bloomberg)
The euro fell to a two-week low against the dollar and yen on concern that Europe’s sovereign- debt crisis may spread to Italy as policy makers remain split on how to structure aid for Greece. The euro dropped against most of its major peers after Die Welt reported that the European Central Bank is seeking to expand a fund to include help for Italy, following a coordinated rescue for Greece by the European Union and International Monetary Fund. The Australian and New Zealand dollars declined as investors shunned higher-yielding assets amid concern China will take further action to cool growth.

ECB signals more rate rises to come, helps Portugal
FRANKFURT, July 7 (Reuters) - The European Central Bank raised interest rates for the second time in three months on Thursday and signalled a further hike is likely this year to tackle inflation despite the intensifying euro zone debt crisis.
The ECB also offered help to hard-pressed Portugal after ratings agency Moody's downgraded its debt to junk status this week, pledging to keep providing it with liquidity regardless of ratings.

Greece Gets Approval for $4.6 Billion IMF Disbursement Under Joint Bailout (Source: Bloomberg)
Greece won approval from the International Monetary Fund for a 3.2 billion-euro ($4.6 billion) payment under a joint loan with the European Union, buying policy makers time to craft a second rescue package and avert the first sovereign default in the euro region. Greek commitments made to secure the loan are “delivering important results,” IMF Managing Director Christine Lagarde said yesterday in statement from Washington. Still, “a durable fiscal adjustment is needed, lest the deficit get entrenched at an unsustainably high level, and productivity-enhancing reforms should be accelerated, lest growth fail to recover.” The decision follows last week’s authorization by European finance ministers to unblock 8.7 billion euros as talks continue on how to include banks and insurers in a new package for Greece, which can’t return to international financial markets next year because of surging borrowing costs.
The option of involving the private sector has been criticized by the European Central Bank because it could trigger a partial default.

Italy Moves to Curb Short Selling After Contagion Concerns Slam Markets (Source: Bloomberg)
Italy’s financial-market regulator moved to curb short selling after the country’s benchmark stock index fell the most in almost five months and bonds tumbled on investor concern Italy would be the next victim of the region’s debt crisis. The regulator known as Consob ordered last night that short sellers must reveal their positions when they reach 0.2 percent or more of a company’s capital and then make additional filings for each additional 0.1 percent. The measure takes effect today and lasts until Sept. 9.

20110711 1056 Global Commodities Related News.

Investors Cut Bullish Agriculture Bets to One-Year Low on Supply Outlook (Source: Bloomberg)
Funds trimmed bets on rising agriculture prices for a third straight week, sending holdings to the lowest in a year as supply concerns eased. Speculators reduced their net-long position in 11 U.S. farm goods by 6.6 percent to 564,174 futures and options contracts in the week ended July 5, government data compiled by Bloomberg show. That’s the lowest since July 6, 2010. Investors more than doubled their net-short bets for wheat. Corn holdings slumped 16 percent.

Corn (Source: CME)
US corn futures finish sharply higher on concerns heat will reduce output. A "heat dome" will center over Iowa, the top corn producing state, by July 16, with temperatures topping 100 degrees, according to PFG Best. "The 8-14 day temperature outlook sees above normal temperatures and below normal rainfall across the entire Midwest," the firm says. Heat is a concern as corn is moving into a key stage of development called pollination. CBOT December corn ends up 21 1/2c at $6.37 a bushel.

Wheat (Source: CME)
US wheat futures close mostly higher on spillover support from surging corn market. Gains in corn lift wheat because both grains are used for livestock feed. Yet, spring wheat futures at MGEX bucked the trend, ending lower. Reports of good protein content in the hard red winter wheat crop, traded at KCBT, are "bearish" for spring wheat because grain users typically look to spring wheat for protein, according to Doane Advisory Services. CBOT September wheat jumps 16 3/4 to $6.51 1/4 a bushel; KCBT September rises 3 1/4c to $7.27 1/4; MGE September drops 7 3/4c to $8.17.

Rice (Source: CME)
US rice futures finish at a five-month high on concerns about reduced output. Heat is expected to cut yields in southern states, such as Texas, which has been suffering from a drought since last autumn. Poor weather this summer could exaggerate a sharp drop in plantings, reported last week in a USDA crop report. And high prices have not shut off demand. Weekly US export sales of 106,700 tons were up 60% from the previous week and 58% from the prior four-week average. CBOT September rice gains 6c to $16.13 per hundredweight.

Informa Pegs US Corn Crop At 13.759B Bushels (Source: CME)
U.S. farmers will harvest 13.759 billion bushels of corn in 2011 and U.S. soybean crop at 3.203 billion bushels according to projections made by private analytical firm Informa Economics, sources said. Informa also estimates corn yields at 162.5 bushels per acre, based on harvested acreage of 84.7 million acres. Soybean yields are estimated at 43.1 bushels, based on harvested acreage of 74.3 million acres. Informa's corn yield is 1.1 bushels below its previous forecast, but almost 10 bushels above last season's weather-reduced yield. Informa's 2011 harvested corn area is 200,000 acres below that estimated by U.S. Department of Agriculture in June, but 3.2 million above corn harvested in 2010. The July 1 soybean yield at 43.1 bushels an acre is down 1 bushel from Informa's previous forecast and would be 0.4 bushel below last year.
Informa tempered its yield forecast for several states due to this season's below-average start, Informa noted in the report, traders said. U.S. 2011 wheat production was projected at 2.095 billion bushels, 113 million less than last year, according to traders. The U.S. is expected to harvest 47.2 million acres of all wheat, 463,000 below last year. Informa's all wheat yield is forecast at 44.4 bushels per acre, 2.0 bushels below last year. All wheat production is forecast at 37 million bushels above that carried in USDA's June WASDE report, Informa reports, traders said. Informa is forecasting U.S. winter wheat production at 1.476 billion bushels, up 26 million from last month but 9 million below last year, traders said. The winter wheat yield is forecast to average 45.7 bushels per acre, 0.4 bushels above last month but 1.1 bushels below last year.
Hard red winter wheat production is forecast to total 788 million bushels. If realized, this will be the smallest hard red winter wheat harvest since 682 million bushels were produced in 2006, according to Informa. The hard red winter wheat yield of 36.6 bushels is 5.7 bushels per acre below last year. Soft red winter wheat production is forecast to total 449 million bushels, with an implied yield of 61.3 bushels per acre, 6.8 bushels above last year. White wheat production is forecast to total 240 million bushels, 11 million above last year. Spring wheat production is forecast at 555 million bushels, 61 million below last year. The average yield is forecast at 42.0 bushels per acre, 4.1 bushels below last year, and would be the lowest spring wheat yield since 2008 when it averaged 40.5 bushels per acre, according to Informa.
Durum production is forecast at 64 million bushels, down more than 40% from last year. If realized, this would be the smallest durum harvest since 2005 when the crop totaled 53 million bushels, according to Informa. The durum yield is forecast to be 38.6 bushels, 3.8 bushels below last year. USDA is scheduled to release its wheat production forecasts and supply and demand projections July 12, 8:30 a.m. EDT (1230 GMT). Last year, U.S. corn output measured 12.447 billion bushels, soybean production came in at 3.329 billion, and U.S. wheat production measured 2.208 billion.

U.S. corn gains on Chinese buying; wheat, soy steady
SINGAPORE, July 8 (Reuters) - U.S. corn futures rose for a second straight session as China's purchases buoyed the market, which is on track to end the week on a positive note after three weekly losses.
"Last week and this week China has been buying U.S. corn and we expect they will continue to take more at these prices which is a very bullish factor," said Kazuhiko Saito, chief commodities analyst at Fujitomi, a Tokyo-based commodities trading company.

Indonesia may import rice from Thailand, Vietnam -Bulog
JAKARTA, July 8 (Reuters) - Indonesia may import rice from Vietnam or Thailand this year through a government agreement that allows buying of up to two million tonnes of the staple grain from the countries, said the head of state procurement agency Bulog on Friday.
The comments are the first indication by Indonesia that it could import significant volumes from August from the world's top two rice exporters, after bumper purchases in January surprised markets and boosted regional prices.

Argentina 2011/12 wheat area seen lower-exchange
BUENOS AIRES, July 7 (Reuters) - Argentina's 2011/12 wheat area will be 4.7 million hectares, down 5 percent from a previous forecast, the Buenos Aires Grains Exchange estimated in its weekly crop report Thursday.
The new forecast brings the exchange in line with the Argentine Agriculture Ministry, which also projected a 2011/12 wheat area of 4.7 million hectares.

Italy 2011 soft wheat output seen down 25 pct -ISTAT
MILAN, July 7 (Reuters) - Soft wheat output in Italy, a major grain buyer in Europe, is expected to fall 25 percent this year because of a drop in sown areas, according to preliminary data from Italy's statistics agency ISTAT.
Soft wheat output is estimated to have fallen to about 2.21 million tonnes this year from about 2.94 million tonnes in 2010 while sown areas dropped to 448,245 hectares (ha) from 548,867 ha, the data showed.

EU clears 110,000 tonnes wheat exports for July 1-5
PARIS, July 7 (Reuters) - The European Union granted export licences for 110,000 tonnes of soft wheat between July 1 and July 5 in the first award for the 2011/2012 season, official data showed on Thursday.
This compared with 246,000 tonnes of export licences cleared in the corresponding period last season.

EU barley harvest underway, smaller crop expected
HAMBURG, July 7 (Reuters) - Harvesting of winter barley for animal feed is now underway in key European Union producing countries and the crop is likely to fall on the year after a drought in several countries,analysts said on Thursday.
Rain in recent weeks was too late to save parched winter barley but the outlook for spring barley, used for malt and beer production, is better.

France sees 10 pct soft wheat crop fall to 32 mln t
PARIS, July 7 (Reuters) - France should harvest 31.99 million tonnes of soft wheat this year, down 10.3 percent on 2010, the farm ministry said on Thursday in a first estimate of the crop.
The ministry cited the impact of a spring drought. France's driest March-May period since 1900 and the hottest in 50 years has stressed crops.

Sugar eases early but Brazil outlook underpins
LONDON, July 8 (Reuters) - ICE raw sugar futures eased in early trade as a stronger dollar contributed to a modest setback after the prior session's surge while cocoa and coffee prices were little changed.
ICE raw sugar futures fell back slightly after the prior session's strong advance, weighed partly by a stronger dollar and weaker oil prices.

Low yields put dent in Brazil sugar, ethanol -Unica
BRASILIA, July 7 (Reuters) - Disappointing yields will cut Brazil's 2011/12 production of both sugar and ethanol biofuel below last year's levels, the technical director at Brazil's cane industry association Unica told Reuters on Thursday.
Antonio de Padua Rodrigues said sugar production in Brazil's center south sugar production would fall below last year's output of 33.5 million tonnes, a sharp drop from the association's existing official estimate of 34.6 million.

Indonesia coffee output may drop 30 pct in 2011
NUSA DUA, Indonesia, July 8 (Reuters) - Coffee production in Indonesia, the world's second-largest robusta producer after Vietnam, could fall as much as 30 percent to around 400,000 tonnes in 2011 due to a failure in pollination after last year's persistent rains, the Indonesian Coffee and Cocoa Research Institute said on Friday.
But next year's output could be normal as the dry season returned this year to coffee plantations in Indonesia, which accounts for about 6 percent of global output, said Soetanto Abdoellah, head of research division of the state-run institute.

Brazil June green coffee exports rise 30 pct on yr
BRASILIA, July 7 (Reuters) - Brazil exported 2.37 million 60-kg bags of unroasted, green coffee in June, a rise of 30 percent from the 1.83 million bags shipped in June 2010, the Cecafe coffee exporter association said on Thursday.
Total exports for Brazil's 2010/11 July/June season, including unroasted green and the soluble kind, reached a record high of 34.9 million 60-kg bags, up 17 percent from the 29.8 million bags shipped in the prior season.

China Coal-Prices flat, port stocks swell to nearly 8 mln T
SHANGHAI, July 8  (Reuters) - China's thermal coal prices were flat this week as power stations, already stuffed with summer stocks, paused their buying spree, but anticipation of another round of summer restocking later this month kept prices elevated.
Average weekly prices of coal with a heating value of 5,500 kcal/kg NAR steadied at 843 yuan ($130.38) a tonne, while 5,800 kcal/kg coal was also unchanged at 900 yuan, according to industry data website SXCOAL (

Indonesia's Bayan signs 100 mln tonne coal deal with Indian firm
JAKARTA, July 8 (Reuters) - Indonesian coal miner Bayan Resources Tbk  has signed a deal with India's Universal Crescent Power Private Ltd to supply 100 million tonnes of coal over 15 years from 2015, the firm's chief financial officer said on Friday.
"It's an index linked contract based on the Newcastle index (and) is fully compliant with the minimum pricing regulation," Alastair McLeod told Reuters. "It's not a fixed price contract, and so it will vary every month on delivery of the contract."

Crude Oil Falls for a Second Day in New York as U.S. Jobless Rate Climbs (Source: Bloomberg)
Oil declined for a second day in New York as investors bet rising unemployment in the U.S. indicated that fuel demand may falter in the world’s biggest crude- consuming nation. Futures slipped as much as 0.5 percent after the Labor Department said July 8 that U.S. employers last month added the fewest workers in nine months and the unemployment rate rose to 9.2 percent, the highest this year. A report this week may show sales at U.S. retailers stagnated in June.

Iron Ore Imports by China Decline as Monsoon Rains in India Slow Shipments (Source: Bloomberg)
China, the world’s biggest buyer of iron ore, cut purchases by 4 percent in June from the previous month as India’s wet season curbed shipments and as Chinese mills sought supplies from domestic mines. Imports were 51.09 million metric tons last month compared with 53.3 million tons in May, according to China’s General Administration of Customs. That’s 8 percent higher than 47.2 million tons a year earlier, according to data compiled by Bloomberg.

Iron Ore-Spot up, Shanghai rebar has best week since April
SINGAPORE, July 8 (Reuters) - Spot iron ore prices rose on Friday as a firmer outlook for China's steel demand prompted mills to restock the raw material, with Shanghai steel futures edging up to three-week highs.
China's daily crude steel output hit a record high above 2 million tonnes towards the end of June, buoyed by increased construction of social housing units in the country.

Namibia 5-months diamond, uranium output down
WINDHOEK, July 8 (Reuters) - Namibia's diamond output fell nearly 9 percent in the first five months of this year, Ministry of Mines and Energy figures released by broking firm IJG showed on Friday.
Production to end-May totalled 528,333 carats, a drop of 8.9 percent from the corresponding period last year.

China's imported iron ore stocks at record high of 93.65 mln T-Mysteel
SHANGHAI, July 8 (Reuters) - China's imported iron ore inventories at major ports reached 93.65 million tonnes this week, 480,000 tonnes up on the week before, industry consultancy Mysteel said on Friday.
Ore from Australia rose 210,000 tonnes to 35.51 million tonnes, and that from Brazil rose 610,000 tonnes to 22.51 million tonnes.

China sets 2nd batch of coke, minor metals export quotas
SHANGHAI, July 8 (Reuters) - China has issued the second batch of export quotas for coke, silver and some minor metals, the Ministry of Commerce (MOFCOM) said on Friday.
The ministry has set the second batch of coke export quota at 3.82 million tonnes, bringing total quota for the full year to 8.42 million tonnes.

Alcoa profit seen higher on aluminum price surge
NEW YORK, July 7 (Reuters) - Alcoa Inc , often viewed as a bellwether of the U.S. economy, is looking at a big jump in second-quarter profit as a result of soaring aluminum prices and growing demand, especially from planemakers.
"When you compare year-over-year, the second quarter will be a lot higher, and most of that is in volume improvement," said analyst Bridget Freas, of Morningstar in Chicago.

Winter storm continues to hit Chile copper heartland
SANTIAGO, July 7 (Reuters) - The world's top copper mine, Escondida, halted extraction operations early Thursday due to heavy rains, its workers union said, as a rare winter storm curbed output across Chile's mining heartland.
Escondida's majority owner BHP Billiton   said it was checking operations and had no details on any disruption at the deposit, which produces more than a million tonnes per year.

China June copper imports seen up, oil down
SHANGHAI, Jul 7 (Reuters) - China's copper imports are likely to rise on arbitrage trading in June from May, after two consecutive months of decline.
Preliminary data from China's General Administration of  Customs is also expected to show a rise in imports in grains but a fall in crude oil and iron ore.

Shanghai warehouse copper stocks down 0.7 pct
SHANGHAI, JULY 8 - Copper inventories in warehouses monitored by the Shanghai Futures Exchange (ShFE) fell 0.7 percent from last Friday, the exchange said on Friday.
Aluminium fell 15,723 tonnes, or 6.2 percent, to 238,894 tonnes as buyers prefer to draw down from stocks rather than to import.

Copper Slides Most in Two Weeks on ‘Disappointing’ U.S. Employment Report (Source: Bloomberg)
Copper fell the most in almost two weeks after U.S. payrolls rose less than forecast in June, damping growth prospects. U.S. employers added 18,000 workers last month, the fewest in nine months, and the unemployment rate unexpectedly climbed, Labor Department data showed today. Economists expected a gain of 105,000, the median estimate in a Bloomberg News survey. The U.S. is the world’s largest copper consumer after China. “The market is selling off on a very disappointing jobs report,” said Adam Klopfenstein, a senior market strategist at Lind-Waldock in Chicago. “There’s a reassessment of the economic recovery in the U.S.”

METALS-LME copper steady on supply worries, US jobs data eyed
SHANGHAI, July 8 (Reuters) - LME copper was steady on Friday, hitting a new three-month high in the session, supported by supply disruptions in Indonesia and Chile and positive data from the United States.
Investors also kept an eye on key U.S. non-farm payrolls data due later in the day to gauge the health of the world's largest economy, after two separate employment reports showed improvement in the labour market

PRECIOUS-Gold holds steady in thin trade before US job data
SINGAPORE, July 8 (Reuters) - Spot gold was steady in thin trade on Friday, ahead of a key U.S. employment report that is expected to show improvement in the labour market and boost optimism on prospects for the world's largest economy.
But stronger-than-expected payrolls data could ease fears that the U.S. economy remains in a prolonged soft patch, potentially undermining safe-haven demand for bullion.

Baltic index rises for 3rd day, capesizes strong
LONDON, July 7 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, rose for a third session on Thursday as gains on the larger capesizes bolstered cargo demand.
But brokers said a potential drop in Chinese raw materials demand and fleet growth were likely to cap gains in the coming days.

Asia Dry Bulk-Panamax rates to rebound on tighter tonnage
SINGAPORE, July 7 (Reuters) - Rates for panamax dry bulk carriers on key Asian freight routes are expected to rebound slightly from two-month lows over the next week as unemployed vessels move to other routes, tightening available tonnage.
In the capesize market, rates are seen steady to higher on firm Chinese demand for Australian iron ore, shipbrokers said on Thursday.

Baltic ship futures screen users growing - exchange
LONDON, July 6 (Reuters) - The Baltic Exchange's platform for centralised electronic trading of dry freight derivatives has signed up 15 principals and five brokers in its first month and aims to boost liquidity in the coming months, the exchange said on Wednesday.
Freight forward agreements (FFAs), which allow a buyer to take a position on freight rates at a point in the future, had not previously traded on a central marketplace.

20110711 1053 Soy Oil & Palm Oil Related News.

MPOB Official Data for the month of Jun 2011 vs May 2011
Export up 12.44%
Stock up 6.75%
Output up 0.65%

ITS CPO export up 1.34% to 440,316 tonnes for the period of 1~10 Jul 2011.
SGS CPO export down 3.3% to 398,280 tonnes for the period of 1~10 Jul 2011.

Soybeans (Source: CME)
US soybean futures end higher, driven by spillover support from rallying corn futures and concerns hot Midwest weather could threaten yields later in the summer. The market added risk premium amid the uncertainties of acreage and production, and with neighboring grain markets rallying, traders were skeptical to selling ahead of the weekend, analysts said. CBOT Nov soy end up 8 3/4c at $13.46 1/2.

Soybean Meal/Oil (Source: CME)
Soy product futures end mixed, with soymeal following the higher price action in soybean futures. Soyoil futures stumbled, sliding on the negative influence of sharply lower crude oil futures, analysts say. Weakness in crude oil adds pressure as biodiesel is made from soyoil. CBOT Dec soymeal end up $4.90 at $350.00/short ton, and Dec soyoil finish down 0.32c at 57.31 cents/pound.

Palm oil rises as comparative oils support, data eyed
JAKARTA, July 8 (Reuters) - Malaysian palm oil futures touched the highest level since the end of June, boosted by technical buying and higher prices for comparative oils ahead of industry data from No. 2 producer Malaysia next week.
"There is some technical inspired buying," said one Malaysia-based trader, citing a jump in crude oil prices on Thursday.

Argentina May soy crushing down 3.9 pct year/year
BUENOS AIRES, July 7 (Reuters) - Argentine soy-crushing fell 3.9 percent in May versus May 2010 to 4 million tonnes following a record 2009/10 crop and healthy yields collected so far in the 2010/11 harvest, the government said on Thursday.
Argentina is the world's top supplier of soyoil and soymeal and the third-biggest exporter of unprocessed beans.