Thursday, July 14, 2011

20110714 1730 FKLI EOD Daily Chart Study.

FKLI closed : 1579 changed : -5 points, volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : falling, seller taking small exposure.
Support : 1565, 1550, 1540, 1530 level.
Resistance : 1580, 1590, 1600, 1610 level.
Comment :
FKLI closed recorded loss with slowing volume traded doing about 1 point discount compare to cash market that closed slightly lower while Asia markets ended mixed and European markets currently trading mostly lower with overnight U.S. market continue to closed higher.
News are mostly negative sided with concern on U.S. under review for a credit-rating downgrade by Moody, China’s $1 Trillion municipal debt seen toxic on cities land valuation issue and hope for U.S. QE3 stimulus and lifting of debt limit provide some support.
Daily chart formed a down doji bar candle with lower shadow closed above middle Bollinger band level after market lower, moved downwards breaking and traded below support level before recovered upward salvaging some losses but still failed to closed above 1580 support turned resistance level.
FKLI is still trading within a correction range bound upside biased development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110714 1518 Global Market & Commodities Related News.

Dlr drops as Moody's warning spurs shift to safe havens
HONG KONG, July 14 (Reuters) - The dollar fell , sending gold to a record high and yields on Japanese government bonds to eight-month lows, after Moody's warning that the United States may lose its top-notch credit rating spurred a rush towards safe-haven assets.
A standoff in the U.S. Congress over raising the country's debt ceiling while disagreements over a plan to reduce the ballooning deficit prompted the rating agency to place its Aaa rating on review for a possible downgrade for the first time since 1996.

Commodity investors seek ways to beat correlation
LONDON, July 13 (Reuters) - Investors may increasingly look to market neutral and managed futures strategies for their commodity exposure if they want to avoid the higher positive correlations that commodities have shown with other asset classes since 2008.
Pension funds have steadily increased their exposure to commodities since 2005, in some cases allocating as much as 5 percent of their overall portfolio.

Indonesia wheat ample, India seen as last resort
JAKARTA, July 13 (Reuters) - Indonesia has ample wheat for the festive season and will seek Indian supply only as a last resort, the head of an industry group said on Wednesday, dampening hopes that the major Asian buyer would take up exports from India.
Indonesia's wheat grain inventory is estimated at 1.5 million tonnes, enough for three months of consumption that includes the high-demand period during the Ramadan fasting month in August and Eid al-Fitr festivities, said Ratna Sari Loppies, executive director of the Indonesian Wheat Flour Mills Association.

U.S. corn, wheat steady near 4-week top, soy flat
SINGAPORE, July 14 (Reuters) - Chicago corn and wheat were steady , after a strong rally in the last two sessions drove prices to a 4-week top, supported by bullish fundamentals and the possibility of more U.S. Federal Reserve stimulus.
"The focus is on debt problems in the U.S. and Europe and what is happening in the equity markets," said Ker Chung Yang, analyst at Phillip Futures in Singapore.

Brazil sugar cane crop to post 1st drop in a decade

SAO PAULO, July 13 (Reuters) - Sugar cane output in Brazil, the world's top producer and exporter, will post its first annual decline in a decade as industry group Unica on Wednesday slashed its forecast for the center-south crop in 2011/12 by 6.2 percent.
Analysts had revised down their production forecasts due to lower yields from aging plants and weather problems. Still, the new forecast, for 533.5 million tonnes, was at the lower end of market expectations.

Philippines may export 200,000T sugar on top of US quota
MANILA, July 13 (Reuters) - The Philippines says it can export up to 200,000 tonnes of raw sugar this year on top of its U.S. quota commitments, but it may not have a lasting impact on global prices as the shipments will only partly offset expected crop losses in Brazil.
The Southeast Asian country would start selling raw sugar this month to Japan and Indonesia, with committed shipments of 35,892 tonnes, Rosemarie Gumera, manager at the policy and planning unit of the state agency Sugar Regulatory Administration (SRA), told Reuters.

Brazil cocoa arrivals down 3 pct from last season
BRASILIA, July 13 (Reuters) - Cocoa deliveries to Brazilian traders' and grinders' warehouses in the last week were down about 3 percent from this time a year ago, data from Bahia Commercial Association showed.
Bahia-based cocoa analyst Thomas Hartmann said that technical problems reported by one large processor mean they may have under-reported deliveries for the period, which if confirmed, would be added to next week's figure.

European Q2 cocoa grindings seen slightly up on year
LONDON, July 13 (Reuters) - Second quarter European cocoa grindings are expected to be slightly up on the same period last year, as the temporary closure of capacity in top producer Ivory Coast continued to boost grindings in other regions in April and May, dealers said.  
First quarter European grindings rose by 3.5 percent on the year earlier, partly boosted by the lack of activity in Ivory Coast. 

Too early to call French grain exports-FranceAgriMer
PARIS, July 14 (Reuters) - FranceAgriMer said on Wednesday it would wait until September to assess France's wheat export potential this season as crop-damaging weather and the resumption of Russian exports made any early forecast hazardous.
France is largest grain producer and exporter in the 27-member European Union.  

Cameroon cocoa grindings up 54 pct y/y
YAOUNDE, July 13 (Reuters) - Cocoa grindings in Cameroon increased by 54 percent in the 2010/11 season to 27,131 tonnes of beans ground by May 31, compared with 17,572 tonnes for the same period in previous season, data from two regulatory bodies showed on Wednesday.
The data showed that the country's only cocoa grinder SIC-Cacao, a Barry Callebaut  subsidiary, bought 842 tonnes of beans in the month of May, up from 255 tonnes in April.

India rushes for sugar sales as world market rallies
MUMBAI, July 13 (Reuters) - Indian sugar traders are asking $775 per tonne free on board (FOB) as they take advantage of record-high international prices to sell 500,000 tonnes of exports approved three weeks ago, three dealers and one analyst told Reuters.
Good demand from neighbours and Gulf countries will mean exporters can easily ship out the quota, allowed under the Open General Licence scheme, by mid-August even at the higher prices, they added.

Oil steady after Moody's warning on U.S. rating
SINGAPORE, July 14 (Reuters) - Oil paused  after Moody's placed the credit rating of top consumer the United States under review for a downgrade, putting the brakes on a rally sparked by the possibility of a new round of economic stimulus.  
"People are still skeptical about Bernanke's comments," said Tony Nunan, a risk manager with Tokyo-based Mitsubishi Corp.

US crude and gasoline stocks fall as imports drop-EIA
NEW YORK, July 13  (Reuters) - U.S. crude and oil product stocks fell last week as crude imports fell, U.S. Energy Information Administration data showed on Wednesday.
Crude stocks in the United States fell a bigger-than-expected 3.12 million barrels to 355.46 million barrels in the week to July 8, EIA said. Analysts polled by Reuters had projected a 1.8 million barrel drawdown on average.

World oil demand to strain supply in 2012-IEA
LONDON, July 13 (Reuters) - World oil demand growth will accelerate next year, adding to the pressure on available supplies, the International Energy Agency said on Wednesday, contradicting a more conservative outlook from producer group OPEC.
In its first 2012 forecast in a monthly report, the IEA said oil use would grow by 1.47 million barrels per day (bpd) to 91 million bpd. The agency also trimmed its estimate of demand growth this year to 1.20 million bpd.

Fire prompts shutdown at BP oil platform in North Sea
OSLO, July 13 (Reuters) - BP  halted oil output from the Valhall field in the North Sea on Wednesday after a fire on its production platform forced the evacuation of hundreds of workers, but the company said there was no risk of oil spills.
"Production is shut in and there is no risk for an oil spill," BP spokesman Jan Erik Geirmo told Reuters. "It is serious when you have a fire on a production platform and the cause of this is something we need to investigate... and it's too early for us to speculate."

LME copper steady, weak dollar supports
SHANGHAI, July 14 (Reuters) - London copper steadied, supported by a retreating dollar and the possibility of more Federal Reserve stimulus, but Moody's warning on U.S. credit rating checked gains.               "Shanghai copper is going through a technical correction after a big rise yesterday compared to London. This overrides the positive influence of the dollar's weakness today," Great Wall Futures analyst Li Rong.

China's June steel, metals output at record as power returns
SHANGHAI, July 13 (Reuters) - China ramped up production of a range of commodities in June and hoisted the output of refined copper, nickel, aluminium, iron ore and steel to record highs, as returning power supplies allowed plants to run their smelters nearly at full-steam.
Weeks of heavy rain across China unleashed crucial hydropower supplies and higher tariffs finally encouraged utilities to restart idled generators, which pushed the country's power generation to a record high of 396.8 billion kilowatt hours.

Indonesia's Timah sees lower exports, higher revenue-paper
JAKARTA, July 14 (Reuters) - Indonesia's Timah , the world's largest integrated tin miner, expects a slight decline in sales this year, but revenue could rise on higher tin prices, Bisnis Indonesia reported on Thursday.
Production and sales of refined tin were forecast to reach 40,000 tonnes in 2011, down slightly from 40,413 tonnes in 2010 due to tough competition from illegal miners in the main producing island of Bangka and Belitung, Chief Executive Wachid Usman was quoted as saying on Wednesday.

Gold hits record, extends gains to 9th day
SINGAPORE, July 14 (Reuters) - Spot gold hit a record high above $1,589 , buoyed by a sharp drop in the dollar after Moody's warned the U.S. may lose its top credit rating, the possibility of more Federal Reserve stimulus and Europe's deepening debt crisis.
"Lacking a really reliable destination, a lot of the funds leaving the bonds market are going into precious metals on the notion that their value will be retained even if policymakers are pressured to go to further extremes to work against contagion."

20110713 1150 Global Market & Commodities Related News.

GLOBAL MARKETS: Dollar, stocks fall on Moody's U.S. credit review
NEW YORK, July 13 (Reuters) - U.S. stock futures and the dollar fell late Wednesday after Moody's Investors Service warned the United States may lose its prized AAA credit rating, reversing a rally on Wall Street.
"They've been threatening to do it for the last 60 days," said Cliff Draughn, president and chief investment officer at Excelsia Investment Advisors in Savannah, Georgia. "What has been beginning to spook Moody's and some other people is that Congress may be dumb enough to actually default on the debt."

OIL: Oil up second day on Bernanke comments, US draw
NEW YORK, July 13 (Reuters) - Oil futures rose for a second day on Wednesday, as U.S. Federal Reserve Chairman Ben Bernanke signaled more stimulus coming if the economy weakens, and U.S. crude inventories fell more than expected last week.
"Bernanke's comments plus the EIA's crude stock draw pulled up crude futures," said Chris Dillman, analyst at Tradition Energy in Stamford, Connecticut.

Mexico's H1 oil output inches up after delays
MEXICO CITY, July 13 (Reuters) - Mexico's oil output rose less than one percent in the first half of the year compared to a year ago as state monopoly Pemex pumped 10,000 barrels held up for the past 6 months due to technical and weather delays.
Pemex produced 2.575 million barrels per day (bpd) in January through June compared to 2.565 million in 2010, the company said on Wednesday.

NATURAL GAS: Heatwave drives natural gas up for fourth day
NEW YORK, July 13 (Reuters) - Front-month U.S. natural gas futures ended higher on Wednesday for a fourth day, as near record temperatures over much of the nation spiked demand despite concerns about record high gas production this year.
"About two-thirds of the country are experiencing much above-normal temperatures, and that's increasing the need for electric power for cooling. With all the heat around, we should also see lower injections which could sustain higher prices," said Tom Saal, senior vice president at INTL Hencorp Futures in Miami.

EURO COAL: Prices rise 25 cents a tonne
LONDON, July 13 (Reuters) - Prompt physical coal prices ticked up 25 cents a tonne on Wednesday in line with crude's gain.
"There are Indian players and really any trader or utility would look at buying at $110 or nearby or a discount of $5 a tonne to API4 but anything higher than that and you will struggle to get a buyer for a July loading cargo," one European trader said.

COMMODITIES: Gold at record high; most commods rise on dlr, Fed
NEW YORK, July 13 (Reuters) - Gold hit record highs on Wednesday on safe-haven buying linked to the European debt crisis and a dollar weakened by hints of more economic stimulus from the Federal Reserve, while supply concerns drove most other commodities higher.
The 19-commodity Reuters-Jefferies CRB index  settled up almost 1.5 percent after U.S. government data showing strong fuel demand boosted oil prices, and corn and wheat extended gains posted on Tuesday from lower stockpile estimates.

20110714 1145 Global Economic Related News.

Thailand: Rate raised as spending pledges signal price gains
Thailand raised interest rates for the sixth straight meeting and signaled further increases as spending pledges by incoming leader Yingluck Shinawatra threaten to stoke inflation. The Bank of Thailand increased its benchmark one-day bond repurchase rate by 0.25% to 3.25%. The nation has boosted borrowing costs eight times in the past year. (Bloomberg)

China: Economy grows 9.5%, exceeding economist estimates
China’s economy and industrial output expanded more than analysts predicted, driving up stocks across Asia as the nation maintains momentum after monetary tightening to cool inflation. GDP rose 9.5% in the second quarter y-o-y after a 9.7% gain in the first quarter. Estimates were for a 9.3% gain. Industrial output advanced 15.1% in June, the most since May 2010. The nation’s growth was 2.2% q-o-q. Fixed-asset spending, excluding rural households, rose 25.6% in the first half y-o-y. Retail sales expanded 17.7% last month y-o-y while June housing transactions rose 31% m-o-m even after government curbs to cool the property market. (Bloomberg)

EU: Ireland cut to junk by Moody’s
Ireland joined Portugal and Greece as the third euro-area nation to have its credit rating reduced to below investment grade as European Union finance ministers struggle to contain the region’s sovereign-debt crisis. Moody’s cut Ireland to Ba1 from Baa3, citing the probability that the country, which received a bailout last year, will need additional official financing and for investors to share in losses before it can return to the private market to borrow. The outlook remains “negative.” (Bloomberg)

US: Budget deficit narrowed to USD43.1bn in June
The US posted a monthly budget deficit of USD43.1bn in June, smaller than a year earlier and reflecting a decline in spending. In June 2010, the shortfall was USD68.4bn. For the fiscal year to date, the budget deficit was USD970.5bn compared with USD1trn the prior fiscal year to date. In June, revenue and other fees decreased 0.6% to USD249.7bn. Individual income tax receipts so far this fiscal year rose 24.3% to USD814.9bn. Corporate income tax receipts rose 1% to USD134.3bn. Spending by the government fell 8.4% in June y-o-y to USD292.7bn. (Bloomberg)

Moody’s places US on review for cut as debt talks stall
Moody’s put the US under review for a credit rating downgrade as talks to raise the government’s USD14.3trn debt limit stall, adding to concern that political gridlock will lead to a default. The Aaa ratings of financial institutions directly linked to the US government, including Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Federal Farm Credit Banks, were also put on review for cuts. (Bloomberg)

US: Bernanke says Fed ‘prepared to respond’ if stimulus needed
Federal Reserve Chairman Ben Bernanke told Congress the central bank is prepared to take additional action, including buying more government bonds, if the economy appears to be in danger of stalling. “The possibility remains that the recent economic weakness may prove more persistent than expected and that deflationary risk might re-emerge, implying a need for additional policy support,” Bernanke said. The Fed “remains prepared to respond should economic developments indicate that an adjustment of monetary policy would be appropriate.” (Bloomberg)

2010714 1144 Malaysia Corporate Related News.

KLCI chart reading :
pullback correction upside biased.

Berjaya Corporation Submits proposal to build solar power plant in Selangor
Berjaya Corporation Bhd (BCorp) has submitted a proposal to the government to build a 100MW solar power plant in Bukit Tagar, Selangor, said its chairman Tan Sri Vincent Tan. If the proposal goes through, it will be BCorp’s first venture into the renewable energy sector. Tan said the power plant would cost RM800mil to RM1bil. For the investment to be viable, it would depend on the feed-in tariff (FiT) set by the government. Tan added that BCorp’s South Korean partner Posco Engineering & Construction Co Ltd would probably be involved in the project as it had the required expertise. – Starbiz

BCorp powers into renewable energy to diversify earnings
Berjaya Corp Bhd (BCorp) is expanding into renewable energy to diversify  its earnings and the plan entails working on new sanitary landfill and  wastewater management projects in China. BCorp is working on a few  landfills and wastewater management projects in China and is eyeing more  jobs to keep it busy for a few years. (Business Times)

TM And TTDI Land Seal Deal For High Speed Broadband  Service
Telekom Malaysia Bhd (TM), Wednesday sealed a service agreement with  TTDI Land Sdn Bhd, a wholly-owned subsidiary of Naza TTDI, for the  provision of its high speed broadband service (HSBB) at TTDI Alam Impian,  Shah Alam. The collaboration is the  first of its kind between TM and a  property developer in Selangor. The investment cost for the UniFi - TM's  HSBB offering launched in March 2010 - project in Alam Impian will amount  to RM1 million. (Bernama)  

Ingress JV gets RM85m Tenaga cable project
Ingress Corporation Bhd’s joint venture has been awarded a RM85m  contract from Tenaga Nasional Bhd for a transmission line in Bandar  Nusajaya, Johor. Its unincorporated joint-venture between its subsidiaries,  Ramusa Engineering Sdn Bhd and Multi Discovery Sdn Bhd received a  letter of acceptance. (The Edge)

SEB to invest RM2.5b in a 600MW coal-fired plant
Sarawak Energy Bhd (SEB) is close to making “a final investment decision”  on a new 600MW coal-fired power plant in Balingian, Mukah Division at a  cost of about RM2.5b to cope with the strong demand for power from  industries in the Sarawak Corridor of Renewable Energy (SCORE).If  commissioned, the plant is expected to be completed by 2015. (The Star)

Can-One fails to stop Kian Joo's bonus issue
Kian Joo Factory Bhd will be able to  proceed with a proposed bonus and  rights issue, after Can-One Bhd's bid to stop the exercise was vetoed by the  Federal Court yesterday. Can-One has since early February 2009 been  trying to buy a 32.9% stake in Kian Joo for RM241.1m. (Business Times)

Zhulian 2Q net profit up 16.6% to RM21m, declares 3 sen  interim dividend
Zhulian Corporation Bhd net profit for the second quarter ended May 31,  2011 rose 16.64% to RM21.01m from RM18.01m a year earlier, due mainly  to increase in demands for both local and overseas markets. The revenue  for the period rose to RM92.69m from RM77.92m in 2010. Earnings per  share was 4.57 sen, while net assets per share was 79.7 sen. Zhulian  declared a second interim single tier dividend of three sen per share of 50  sen each in respect of the financial year ending Nov 30, 2011. (The Edge)  

Ngiu Kee faces suspension on July 21
Ngiu Kee Corporation Bhd faces suspension on July 21 and delisting on  July 25 after it failed to submit its regularisation plan to the regulators  for  approval within the timeframe. Ngiu Kee failed to submit the plan to  Securities Commission or Bursa Malaysia Securities Bhd. The securities of  the company will be suspended from July 21 and delisted on July 25 unless  an appeal is submitted to Bursa Securities on or before July 20. (The Edge)

IFCA MSC gets RM5.2m job in S. Africa
IFCA MSC Bhd has entered into a software licence and master services  agreement to supply its a fully integrated e-Business Management Solution  designed specifically for property companies in South Africa for RM5.2m. Its  subsidiary Effica Technology (Proprietary) Ltd had entered into the  agreement with Growthpoint Management Services (Proprietary) Ltd to  supply and implement its IFCA Application Software. (The Edge)

Century Software gets RM1m job from pension fund
Century Software Holdings Bhd has secured a RM1m job from Kumpulan  Wang Persaraan (Diperbadankan) to develop an integrated system to  automate the management of pension contributions. Century Software said  the contract was for eight months. (The Edge)

Ramunia submits application
Ramunia Holdings Bhd has submitted applications for its proposed regularisation plan. (The Star)

Coastal secures RM98m vessel sales
Coastal Contracts has secured contracts for the sale of a DP2-enabled maintenance and support vessel as well as two units of barges for an aggregate value of RM98m. The revenue stream from the deals was expected to contribute positively to the top and bottom line performance of the group for the financial year ending 31 Dec, 2011, the company said in a statement. The new contracts brings its total year-to-date vessel sales orders to around RM430m. Including the new contracts and after adjusting for revenue recognition from vessels delivered to buyer in the second quarter, the group has about RM500m worth of vessel sales orders awaiting delivery to customers up to 2012. (Bernama)

20110714 1114 Renewable Energy Related News.

SHANGHAI, July 13 (Reuters) - China's power output in June rose 16.2 percent from a year earlier to 396.8 billion kilowatt hours, the National Bureau of Statistics said on Wednesday.    
June's power output was also up 5.1 percent from a month ago, when total generation stood at 377.5 billion kilowatt hours, thanks to heavy rains which ended months of drought and boosted to hydro power generation.

SAN FRANCISCO, July 12 (Reuters) - Canadian Solar Inc  is aiming to ship more than 2 gigawatts of solar modules in 2012, a target that would represent a 60 percent increase from the midpoint of its 2011 forecast, Chief Executive Shawn Qu said on Tuesday.
The company's production last year of more than 800 MW, Qu said, had put Canadian Solar among the top six largest module manufacturers. He confirmed that the company was planning on shipping 1.2 GW to 1.3 GW of modules this year.

BANGALORE, July 12 (Reuters) - ReneSola Ltd , a China-based solar wafer producer, joined a slew of companies in cutting its quarterly revenue and gross profit margin view, as lower subsidies in major European markets weigh on sales and prices.
ReneSola shares, having nearly halved their value this year, fell 8 percent to a low of $4.29 on Tuesday. Other solar stocks, including those of First Solar , Suntech Power , Trina Solar , Yingli Green Energy  and GT Solar International , were also down.

MADRID, July 12 (Reuters) - Spain has less water than a week ago to generate hydropower and irrigate crops, the latest official data showed on Tuesday, potentially adding to its already hefty burden of gas and grain imports.
The Ministry for the Environment and Rural Affairs said in its latest weekly bulletin that hydropower reservoirs had enough water to produce 14,823 gigawatt-hours of electricity, 318 less than last week .

LOS ANGELES, July 11 (Reuters) - Spending on equipment to make photovoltaic solar products will collapse next year following aggressive capacity expansions in 2010 and 2011 that have created an oversupply of panels in the market, according to a report by research firm Solarbuzz.
Equipment spending for crystalline silicon and thin-film products will slide 47 percent to $7.6 billion in 2012 from $14.2 billion this year, the report said.

PARIS, July 11 (Reuters) - France launched a 10 billion euro ($14.30 billion) offshore wind power tender on Monday that aims to kick start the sector in the nuclear-reliant country.
The tender is the first part of a plan to develop 6,000 megawatts of electricity capacity by 2020 and will contribute to France's target to derive 23 percent of its energy consumption from renewable sources, also by 2020.

Zurich, July 11 (Reuters) - Swiss engineering group ABB  is to buy Trasfor Group for an undisclosed amount, boosting its transformer business and giving it access to key products for fast-growing markets such as the renewable energy sector.
Swiss-based Trasfor, which makes dry-type transformers and inductors for low- and medium-voltage applications, has about 380 employees and generated $130 million of revenues in 2010.

LONDON, July 8 (Reuters) - Britain will exclude details of support for green energy under power market reform plans it is due to unveil next week, say sources familiar with the statement which may disappoint investors and developers.
The proposals will centre around a guaranteed purchase price for low carbon electricity, critically widening existing renewable energy support to include nuclear power.

July 8 (Reuters) - Projected water runoff at The Dalles Dam on the Columbia River in Oregon held steady near record levels at 138 percent of normal for April through September, the U.S. Northwest River Forecast Center (NWRFC) forecast Friday.
That's unchanged from the previous forecast.

July 8 (Reuters) - Regulated utility San Diego Gas & Electric (SDG&E), a unit of Sempra Energy , signed contracts for a 150 megawatt (MW)solar power plant and a 40 MW geothermalpower plant with two entities in California.
It signed the solar contract with private solar development company Solar Gen 2 LLC for a plant that will be built in three, 50-MW phases at separate sites on fallowed land.

July 9 - Mitsubishi Chemical Holdings Corp  will start making adhesive film used in solar cells, challenging Bridgestone Corp  and Mitsui Chemicals Inc , who make the key material that determines the life span of the cells, the Nikkei business daily said.
Mitsubishi will spend about 10 billion yen ($123 million)through 2015 to grab 30 percent of the global market for the film, and will launch a large plant in China by the end of 2012, the daily reported.

CATANIA, Italy, July 8 (Reuters) - Italy's booming solar power market is expected to grow nearly four times to 30 gigawatts of capacity by 2020 as part of incentive-driven efforts to fight climate change, the head of Italy's top utility said.
Italy's solar market, the world's second-largest after Germany, has rapidly grown since 2007 when the government boosted production subsidies, attracting the world's biggest makers of photovoltaic modules, which turn sunlight into power.

TORONTO/VANCOUVER, July 7 (Reuters) - The Canadian province of Ontario says its program of providing incentives for green energy production has brought in commitments for C$20 billion ($21 billion) in private-sector investment since the program was put in place in 2009.
Ontario's energy ministry released a report outlining the investments on Thursday, and giving an investment figure for the first time, as the province's governing Liberals get set to campaign ahead of the Oct. 6 election in which their green energy plan is seen as a major and contentious issue.

July 6 (Reuters) - U.S. utility owner Duke Energy Corp  said it has acquired a fully developed and contracted 131 megawatt wind power project in Kansas from CPV Renewable Energy as part of its plans to raise its clean energy portfolio, but did not disclose the financial terms of the deal.
Duke Energy unit Duke Energy Renewables will build, own and operate the Cimarron II Windpower Project in the Gray county.

20110714 1113 Biofuels Related News.

-- Gavin Maguire is a Reuters market analyst. The views expressed are his own. To get his real-time views on the market, please join the Global Ags Forum. --
CHICAGO, July 12 (Reuters) - Tuesday's monthly USDA supply and demand report may have lacked the fireworks of the June 30 stocks and acreage update, but nonetheless it marked a significant milestone by ranking ethanol as the single largest consumer of the U.S. corn crop for the second month in a row.
This official categorizing of ethanol as the country's top corn user comes at a time when the ethanol industry is already receiving blame for fueling record food prices while losing key government subsidy support as lawmakers crack down on spending, and so will be an unwelcome development for ethanol makers who would rather see their profile in the agriculture arena decline instead of increase.

BRUSSELS, July 12 (Reuters) - Europe must be more transparent about how it measures the environmental impact of biofuels before thinking of penalising palm oil exporters, a senior Malaysian minister said.
Trade and Industry Minister Mustapa Mohamed said the EU was revealing too little about its plans to limit imports of biofuels that it deems to be doing more harm than good to the environment.

SAO PAULO, July 12 (Reuters) - Top producer Brazil is expected to add new sugar milling capacity slowly, in part due to high costs, signalling tightness in the sugar market in the medium term, a senior Rabobank analyst said on Tuesday.
Due to its favourable agro-climate and extensive untapped land, Brazil has been seen as the best prospect to boost sugar production and meet growing world demand for the sweetener.

WASHINGTON, July 12 (Reuters) - U.S. corn stocks will languish near 15-year lows for longer than expected as ethanol plants overtake livestock as the biggest consumers of the feed grain and China buys more American corn, according to government forecasts.
The U.S. Agriculture Department, as expected, boosted its forecasts on Tuesday of ending stocks this year and next, largely due to weaker-than-expected consumption by the livestock sector this year. But the revisions fell short of analysts' forecasts and supported prices that have fallen 15 percent from their peak on signs of healthier supplies.

SAO PAULO, July 11 (Reuters) - Brazilian cane industry group Unica plans to release its latest forecast for 2011/12 sugar production in the center-south of Brazil on Wednesday, a spokesperson said on Monday.
The sugar market is focused on Unica's forecast after private analysts including Datagro and London-based merchant Czarnikow reduced their projections for Brazilian output. Brazil is the world's top producer and exporter of sugar.

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.

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.

HAMBURG, July 8 (Reuters) - German second generation biofuels company Choren Industries GmbH has declared insolvency, a company spokesperson said on Friday.
Choren is building Germany's first biofuels plant producing using second generations of biomass raw materials.

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.

WASHINGTON, July 7 (Reuters) - Three U.S. senators reached a deal on Thursday to repeal the $6 billion per year ethanol tax credit by the end of July, an agreement that must still be passed by Congress.
The loss of the subsidy could add extra costs for ethanol blenders such as Valero Energy Corp  and Marathon Oil Corp , but it is unlikely to reduce demand for corn.

WASHINGTON, July 7 (Reuters) - The U.S. Energy Department on Thursday provided a $105 million conditional loan guarantee to help finance the first commercial-scale cellulosic ethanol plant in the country.
The Iowa-based plant, which would be operated by privately-held POET LLC, would use corncobs, leaves, husks and some stalks provided by local farmers to produce up to 25 million gallons of advanced ethanol a year.

20110714 1105 Global Market Related News.

DJIA chart reading :  correction range bound upside biased.

Hang Seng chart reading : side way range bound little downside biased. 

Asian Stocks Swing Between Gains, Losses on Moody’s Review of U.S. Credit (Source: Bloomberg)
Asian stocks swung between gains and losses after Moody’s Investors Service put the U.S. under review for a credit-rating downgrade, hurting the outlook for exporters. Commodity producers climbed after prices advanced yesterday.

Moody’s Places U.S. on Review for Downgrade (Source: Bloomberg)
Moody’s Investors Service raised the pressure on U.S. lawmakers to increase the government’s $14.3 trillion debt limit by placing the nation’s credit rating under review for a downgrade. The U.S., rated Aaa since 1917, was put on review for the first time since 1995 on concern the debt threshold will not be raised in time to prevent a missed payment of interest or principal on outstanding bonds and notes even though the risk remains low, Moody’s said in a statement yesterday.
The rating would likely be reduced to the Aa range and there is no assurance that Moody’s would return its top rating even if a default is quickly cured. President Barack Obama is considering summoning congressional leaders to Camp David this weekend to work on a plan to raise the debt ceiling after yesterday’s negotiations on a deficit-cutting plan of at least $2 trillion stalled, according to two people familiar with the matter. A failure to raise the debt limit that causes a default may lead to slower economic growth and another financial crisis.

Fed Ready With Stimulus If Needed: Bernanke (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke told Congress the central bank is prepared to take additional action, including buying more government bonds, if the economy appears to be in danger of stalling. “The possibility remains that the recent economic weakness may prove more persistent than expected and that deflationary risks might reemerge, implying a need for additional policy support,” Bernanke told the House Financial Services Committee in Washington today. The Fed “remains prepared to respond should economic developments indicate that an adjustment of monetary policy would be appropriate.”

U.S. Budget Deficit Narrowed to $43.1 Billion in June on Slower Spending (Source: Bloomberg)
The U.S. posted a monthly budget deficit of $43.1 billion in June, smaller than a year earlier and reflecting a decline in spending. In June 2010, the shortfall was $68.4 billion, according to the Treasury Department’s monthly budget statement, released today in Washington. A slowing economy and restrained job growth may limit tax receipts for the government, raising the risk that the budget deficit will reach a record this fiscal year. The shortfall underscores the urgency surrounding budget negotiations between President Barack Obama and Congress as the U.S. approaches a $14.3 trillion statutory debt limit.

U.S. Import Prices Drop for First Time in a Year on Lower Oil, Food Costs (Source: Bloomberg)
Prices of goods imported into the U.S. dropped in June for the first time in a year as oil and food expenses retreated. The 0.5 percent fall in the import-price index followed a revised 0.1 percent gain in May, Labor Department figures showed today in Washington. Economists projected a 0.6 percent decrease for June, according to the median estimate in a Bloomberg News survey. Prices excluding petroleum fell 0.2 percent, the first decline since July 2010.

S&P 500 Futures Drop as Moody’s Reviews U.S. Credit Rating for Downgrade (Source: Bloomberg)
U.S. stock-index futures fell after Moody’s Investors Service said the American government may lose the Aaa credit rating it’s held since 1917. Standard & Poor’s 500 Index futures expiring in September dropped 0.4 percent to 1,306.60 at 7:25 a.m. in Tokyo. Moody’s began its first U.S. review since 1995 as talks to raise the $14.3 trillion debt limit stall, adding to concern political gridlock will lead to a default. Even a temporary default would likely have “large systemic effects” on the economy and Treasury finances by disrupting money funds, the repurchase-agreement market and foreign investor willingness to buy the government’s debt, according to JPMorgan Chase & Co.

California May Sell Notes Before Federal Debt-Limit Deadline, Lockyer Says (Source: Bloomberg)
Moody’s Investors Service placed 7,000 municipal ratings on review for possible downgrade after it warned the U.S. may lose its Aaa investment grade. The ratings company said in a note that potential downgrades would affect $130 billion in municipal debt including mortgage-backed bonds secured by the U.S. or agencies such as Fannie Mae and Freddie Mac. Moody’s said any downgrade to the U.S.’s Aaa investment grade would automatically cut those 7,000 municipal ratings by the same degree. A second category of municipal lenders, those whose repayment is less directly linked to the federal government, also would be reviewed for possible action, Moody’s said.

China May Sustain 9% Growth on Inland Shift (Source: Bloomberg)
China may maintain growth of about 9 percent this year, avoiding a “hard landing,” as spending on low-cost homes and developing inland provinces counters the impact of Europe’s debt crisis and monetary tightening. Investment by local governments and private businesses helped drive a 9.5 percent gain in second-quarter gross domestic product from a year earlier, the National Bureau of Statistics said in Beijing yesterday. That was faster than estimated as growth in industrial output and retail sales accelerated and copper and aluminum production reached records. Investment accounted for more than half of the nation’s expansion in the first six months of the year and may offset threatened weakness in exports in the second half. At the same time, dependence on fixed-asset spending highlights limited progress in shifting to a more consumption-driven model that would play a bigger role in supporting global demand.

China Cities Sell Land With Bonds Seen Toxic (Source: Bloomberg)
Workers toil by night lights with hoes, carving out the signs for Olympic rings in front of an unfinished 30,000-seat stadium, bulb-shaped gymnasium and swimming complex in a little-known Chinese city. Loudi, home to 4 million people in Chairman Mao Zedong’s home province of Hunan, is paying for the project with 1.2 billion yuan ($185 million) in bonds, guaranteed by land valued at $1.5 million an acre. That’s about the same as prices in Winnetka, a Chicago suburb that is one of the richest U.S. towns, where the average household earns more than $250,000 a year.

China Bank Stocks Seen Extending Slump (Source: Bloomberg)
Chinese banks, the cheapest among major emerging markets' lenders, may drop lower as overseas banks and funds trim stakes to meet capital rules and curb risks amid concerns that the nation’s record credit boom will unravel. The country’s five biggest banks trade at an average 7.7 times forecast earnings, according to data compiled by Bloomberg. That compares with 8.09 for Brazil’s largest banks, 8.11 for Russia and 14.8 for India. Standard Chartered Plc (STAN) and Qatar’s sovereign fund are among investors that will be allowed to sell their holdings in the banks starting July 16.

China Q2 growth tops forecast
BEIJING, July 13 (Reuters) - China's economy grew faster than expected in the second quarter, easing fears of a hard landing and strengthening Beijing's resolve to fight persistently high inflation.
China's statistics office said on Wednesday that stabilising prices remained the top priority, even though a "complex and volatile" global economy posed a threat to growth, complicating the policy choices.

China Wen says to keep policies, warns over-tightening
BEIJING, July 12 (Reuters) - Beijing will continue to put taming inflation at the top of its agenda by keeping a prudent monetary policy stance, but it will try to avoid any big swings in economic growth caused by excessive tightening, Chinese Premier Wen Jiabao said in comments published on Tuesday.
"We must avoid the combination of lagging effects of monetary policy and other factors to cause big impacts on future real economic operation," Wen said in a statement published on the central government Internet portal.

China soothes, but euro zone crisis still haunts
LONDON, July 13 (Reuters) - Soothing data about China's economy provided some succour to investors on Wednesday although Europe's debt crisis rolled on with Irish government bond yields hitting record highs after a downgrade to junk.
European shares were higher after the previous session's losses and the euro reversed some of its recent weakness against the dollar.

Japanese Stocks Fall as Moody’s Threat Drives Down Dollar; Nissan Declines (Source: Bloomberg)
Japanese stocks fell for the third time this week after Moody’s Investors Service threatened to cut the U.S.’s credit rating, driving down the dollar against the yen and hurting the outlook for Asian exporters.

Bank of Korea Maintains Interest Rate at 3.25% After Last Month’s Increase (Source: Bloomberg)
The Bank of Korea kept interest rates unchanged after raising them in June, a likely temporary suspension of its efforts to tame inflation by increasing borrowing costs. Governor Kim Choong Soo and his board held the benchmark seven-day repurchase rate at 3.25 percent, the central bank said in a statement in Seoul today. The decision was predicted by 13 of 14 economists surveyed by Bloomberg News. It raised rates by a quarter-percentage point each in January, March and June.

Greece Gets World’s Lowest Rating From Fitch in Catch-up Downgrade to CCC (Source: Bloomberg)
Greece’s credit rating was cut three levels to Fitch Ratings’ lowest grade for any country in the world as the company followed rivals and said that a default is a “real possibility.” The move to CCC from B+ “reflects the absence of a new, fully funded and credible” program by the International Monetary Fund and the European Union, the ratings company said yesterday in a statement in London. It also reflects “heightened uncertainty surrounding the role of private creditors in any future funding, as well as Greece’s weakening macroeconomic outlook.”

Italy Braves Yield Surge With $7 Billion Bond Sale as Senate Votes on Cuts (Source: Bloomberg)
Italy taps bond markets today as the Senate votes on budget cuts to tame a debt burden that is the second largest in Europe and has prompted investors to drive borrowing costs to a 14-year high. The treasury plans to sell as much as 5 billion euros ($7 billion) of four different bonds with maturities ranging from five to 15 years. It’s the first sale of longer-term debt since the country’s 10-year yield reached 6.02 percent on July 12, the highest since 1997. The yield fell from that peak after Italy successfully sold treasury bills the same day.

Pound Declines as Jobless Claims Soar, Denting Prospects for U.K. Recovery (Source: Bloomberg)
The pound fell against the euro as a report showed the number of Britons filing jobless-benefit claims increased at the fastest pace in more than two years, fueling concern that the economic recovery is stalling. Sterling snapped three days of gains versus the 17-nation currency. Jobless claims rose by 24,500 last month, the biggest increase since May 2009, the Office for National Statistics said today in London. The median forecast of 21 economists in a Bloomberg News Survey was for a gain of 15,000. The pound surged against the dollar after Federal Reserve Chairman Ben S. Bernanke said policy makers will provide stimulus if needed.

Euro zone May output edges up, consumer goods weak
BRUSSELS, July 13 (Reuters) - Euro zone industrial output rose by far less than expected in May, data showed, appearing to confirm the economy went through a soft patch in the second quarter with declines in production of consumer goods.    
Industrial production, a key component of gross domestic product (GDP), rose 0.1 percent month-on-month for a 4.0 percent year-on-year gain in the 17 countries using the euro, the European Union's statistics office, Eurostat, said on Wednesday.

FOREX-Euro extends bounce, but contagion risk to check gains
LONDON, July 13 (Reuters) - The euro bounced on Wednesday, taking a breather from this week's selloff, while commodity currencies rose after upbeat Chinese data comforted investors worried that the euro zone debt crisis could trigger a global slowdown.
But concerns about the crisis spreading further across the euro area are likely to keep gains in the single currency in check, with the focus shifting to an emergency summit of European Union leaders expected on Friday.

20110714 1103 Global Commodities Related News.

Corn (Source: CME)
US corn futures end sharply higher on crop-threatening hot weather and a weaker US dollar. Scorching weather, along with forecasts calling for more heat, prompt concerns about the size of the crop. Analysts warn that a crop shortfall would cause big problems because supplies are already tight. Forecasts differ on how long the heat will last. Meanwhile, the weaker USD and stronger equities helped boost commodities generally. July CBOT corn ends up 29 3/4c, or 4.3%, to $7.26 3/4 a bushel. Dec corn closes up 21 3/4c to $6.79 3/4.

Wheat (Source: CME)
US wheat futures surge, rallying near 4-week highs on spillover support from corn and external financial markets. Wheat continued to advance with corn, as traders price wheat as a competitive feed grain with corn, analysts say. Weakness in the U.S. dollar, broader based buying in commodities and assumptions the market was undervalued after recent break in prices attracted speculative buying to the market, analysts add. Comments from Fed Chairman Bernanke taunting the possibility of using additional economic stimulus weakened the dollar and bumped up commodity prices, said Dan Basse, president AgResource Co in Chicago. CBOT Sept wheat end up 6.3% at $7.14 1/2.

Rice (Source: CME)
CBOT rice futures continued to soar Wednesday, ending limit up on a troubled US crop and world prices. A late-planted crop and drought conditions are hurting the US crop, analysts say. Meanwhile, world prices are up sharply this week, and uncertainty about Thailand's new government and its rice policy is considered supportive. The most-active September contract is up 19% from a June 30 low, closed up 50c to $16.69/hundredweight. July rice, which is in delivery, ended up 40 1/2 cents to 2.6%.

US corn near 2-wk top on tight supplies, wheat dips
SINGAPORE, July 13 (Reuters) - Chicago corn futures were steady after climbing 4 percent to a two-week high in the previous session, buoyed by a U.S. government report which forecast surprisingly small corn stocks.
"The wheat is definitely better supplied than what corn is and today's action is more to do with profit-taking after 5 percent rally," said Adam Davis, a senior commodity analyst at Melbourne-based fund Merricks Capital. "Tight supplies as predicted in the USDA report are still supporting corn."

Ukraine says may export 20 mln T of 2011 grains
KIEV, July 13 (Reuters) - Ukraine may export 20 million tonnes of grain from this year's crop if the harvesting campaign progresses well, First Deputy Prime Minister Andriy Klyuev said on Wednesday.    
This volume could include 9 million tonnes of wheat, he told a government meeting. In the previous season, Ukraine was hit by drought and exported 12.1 million tonnes of grain including 4 million tonnes of wheat.

Black Sea grain crops rise, supply seen strong
BUCHAREST, July 13 (Reuters) - Eastern Europe's grain crops are likely to recover this year due to favorable weather, following a scorching previous season, and help the Black Sea powerhouse gear up for a pick-up in exports.
Last year Russia lost over a third of its grain crops in the worst drought in decades, prompting the government to ban exports for a year, while Ukraine's cereal crop production dropped by a sixth.

China 2011 wheat output seen up 1.4 pct at 116.79 mln T-CNGOIC
BEIJING, July 13 (Reuters) - China will likely harvest a total of 116.79 million tonnes of wheat this year, up 1.4 percent from last year, despite earlier concerns over drought damage to winter crop, according to the lastest estimate by an official think-tank.
China National Grain and Oils Information Centre (CNGOIC) revised upward the country's wheat output after the National Bureau of Statistics said the country's winter wheat, which accounts for a majority of the wheat harvest, was two percent higher than last year at 110.79 million tones.

US corn fields wet enough to face heat, for now
CHICAGO, July 12 (Reuters) - There is enough soil moisture across much of the U.S. Midwest to help the corn crop withstand soaring temperatures the next two weeks when plants pollinate and set yields, agricultural meteorologists said on Tuesday.
Incessant spring rains, especially in the eastern Corn Belt, have saturated the fields, giving the corn and soybean crops ample moisture against the high-pressure ridge.

Rains revive EU wheat outlook, sunshine now needed
LONDON, July 12 (Reuters) - Rains have improved the outlook for wheat crops in top European Union producers France and Germany, following spring droughts, and now sunshine is needed, crop analysts said on Tuesday.
Prospects for the wheat harvest in Britain, however, continue to deteriorate as dry weather further stresses crops in the EU's number three producer.

French farm body raises wheat crop view to 32 mln T
PARIS, July 12 (Reuters) - French farm office FranceAgriMer has raised its estimate for this year's soft wheat crop to 32 million tonnes from 31 million last month, data posted on its website showed on Tuesday.
The revised forecast, based on figures as of July 5, was still 10.3 percent down on a 2010 crop of 35.7 million tonnes and would remain the smallest since 2007.

Manitoba to See Hot, Dry July - Forecaster (Source: CME)
After being swamped by well-above-average rainfall throughout the spring, the wet areas of Manitoba have been able to dry out, for the most part, over the past month or so. Drew Lerner, president of World Weather Inc. in Kansas City, said a drying bias is under way in the province, and it should continue for a while longer. "The longer-range outlook was for Manitoba to see drier weather as the summer went along, and with the ridge of high pressure that's being advertised for the U.S. Midwest for the next 10 days or so, we will probably see that pattern perpetuate for the next little while," Lerner said. Lerner said although the weather will be hot and dry for the most part, the period won't be prolonged enough where droughtlike conditions could become a concern for Manitoba producers. He said thunderstorms were likely to flare up, which is where most of the moisture would be coming from. However, Lerner admitted July will turn out to be a hot month in Manitoba.
"Temperatures in the low to mid-30s [Celsius] are likely, and it will be humid," he said. As far as the harvest forecast is concerned across the Canadian prairies, Lerner said if crops develop quickly, there could be some delays. "Some of the areas in Saskatchewan and Alberta will still be getting rain in the traditional harvest season, but so much of the crop was planted late that it might not be much of a factor," he said. "We should see a wet August and early September, but then it should stop raining, and should see better weather for harvesting. "Manitoba is likely to be included in this as well, but it won't be as wet as it is in the western provinces. We will still have showers coming along during the start of the harvest season, but I think once we get a couple of weeks into September we should see better harvest conditions right across the Canadian prairies," Lerner said.

General Mills CEO: Price Of Food Is Unlikely To Decline (Source: CME)
Higher food prices are here to stay, General Mills Inc.'s Chief Executive Ken Powell said, adding that it was unlikely that food prices will slip into a deflationary cycle as they did last year. "It would be highly unlikely that we'll see price declines," Powell said. "The long-term trends are inflationary, not deflationary. You're going to see pricing in a significant way." General Mills will rely entirely on higher prices to increase its sales for fiscal 2012, as overall sales volume is expected to fall. Last month, the company issued its outlook, which sees revenue rising in the mid-single digits. Powell made the comments at General Mills annual meeting with investors, where the company highlighted opportunities to grow in yogurt, cereals, convenient meals like soup, snack bars and ice cream. Long-term goals see the maker of Cheerios cereal, Progresso soups and Yoplait yogurt growing sales by 20% to $18 billion and per-share earnings by more than a third to $3.38 by fiscal 2015.
The current year, however, faces challenges, largely due to rising costs for ingredients and fuel, which General Mills last month said would mute earnings growth, with the pain most acute this current quarter. The company hopes that a slate of new products, including 70 in the next several months, will excite consumers to spend, even though its prices are rising. In May, for instance, General Mills prices were 9.4% higher than a year ago. General Mills will also make a stronger run at the Greek yogurt category with its Yoplait brand. Greek yogurt's recent explosive growth in the U.S. has been driven by smaller brands such as Chobani and Fage, both privately held. General Mills earlier this year launched Yoplait Greek with fruit on the bottom, after a previous version that blended the fruit in wasn't popular with consumers. The change improved sales, and General Mills plans to devote more manufacturing capacity to Greek yogurt later this summer. It will also start an advertising campaign for the brand.
"We see no reason why we can't capture our fair share of the Greek yogurt market," said Ian Friendly, chief operating officer of General Mills' U.S. retail business. General Mills' increasing focus on innovation comes as some of its key rivals have been whipping up more recipes in their kitchen. Kellogg Co. (K) has ramped up innovation in the cereal aisle and in other categories to boost sales. Campbell Soup Co., whose soups compete with General Mills' Progresso brands, this week said it was spurring innovation over the upcoming year, including adding more flavor to 46 of its soups by increasing the sodium content. Progresso is also going to add more soups that highlight flavor, rather than healthful benefits, including additions to its Rich & Hearty line like Steak Burger soup. General Mills said it isn't following Campbell's move last month to raise list prices it charges retailer by 4% to 6%. Instead, Progresso is reducing the discounts it will offer on soup.

Ukraine Harvests 6.9M Tons Grain To July 12, Up On Year (Source: CME)
Ukraine harvested 6.9 million metric tons of grain to July 12 on 2.4 million hectares, which is 21% of the planned total area to be harvested, with the harvest to date being 1.1 million tons more than on the same date last year, the agriculture ministry reported. The average yield to date was 2.84 tons a hectare compared with 2.43 tons a hectare on the same date last year. Winter barley harvest to date was 2.8 million tons with the average yield of 2.78 tons a hectare. Winter wheat harvest to date was 3.5 million tons with the average yield of 3.13 tons a hectare. The ministry said 65% of the wheat harvest to date was milling wheat, the rest feed wheat. The agriculture ministry expects this year's grain harvest at 42-45 million tons. Ukraine's grain harvest in 2010 fell by 14.8% on the year to 39.23 million tons in clean weight because of drought. The national hydro meteorological center said May 27 that Ukraine was likely to harvest this year between 43 million tons and 44 million tons grain.

Food Prices Have A Long Way Back To Pre-Food-Crisis Levels -FAO Official (Source: CME)
World food prices will remain expensive and a fall towards their levels prior to the food crisis that peaked in 2008 will be a long time coming, as production of most agricultural commodities isn't rising fast enough to meet demand, an official at the United Nations Food and Agriculture Organization said. "Food prices aren't likely to return to pre-food crisis levels at least for the next 10 years," FAO policy officer Sumiter Singh Broca said on the sidelines of an agriculture conference. "Food production will have to [increase significantly] to fight rising prices." The price of staple foods including wheat and sugar will rise further without action. "The world is running out of suitable lands and greater urgency is now needed for governments to invest in agriculture to boost yields," Broca said.
Global food prices have risen steadily since 2000 and a combination of food scarcity, rising population and high energy prices pushed the cost of major staples including rice, soybeans and palm oil to record highs i n 2008, spreading hunger and poverty from developing to developed nations. The food crisis also led to a string of protests around the world, from Mexico to Egypt and other parts of Africa. While world food prices have declined from their 2008 peaks, they are around 50% higher than pre-crisis levels for some of the major grains including rice and maize, according to FAO data. The FAO food price index, which groups 55 food commodities, rose 1% from May to 233.8 points in June, driven by rising costs of sugar, meat and dairy products, the FAO said last week. The gauge rose to an all-time high of 237.7 in February. Global food prices have "stabilized for now," and over the next few months "won't surpass February's record due to good harvests in rice- and cereal-producing nations," Broca said.

Commodities Rise to Four-Week High as Bernanke Signals More U.S. Stimulus (Source: Bloomberg)
Commodities rose to a four-week high as Federal Reserve Chairman Ben S. Bernanke indicated he may provide more U.S. economic stimulus, driving down the dollar and boosting demand for raw materials as a hedge against inflation. Gold climbed to a record and silver surged the most since March 2009, partly as Europe’s debt crisis escalated. The dollar dropped the most in two weeks against a six-currency basket. Corn and soybeans jumped partly on concern that adverse weather will cut output in the U.S., the world’s leading exporter of the crops.

Sugar hovers near contract highs, coffee consolidates
LONDON, July 13 (Reuters) - Raw sugar futures eased , trading below the contract highs hit the previous session which were triggered by technical buying. Arabica coffee futures rose in a small bounce,consolidating, while cocoa also edged higher.
ICE raw sugar futures hovered near the contract high hit on Tuesday of 30.62 cents a lb, as dealers expected a downward revision to top producer Brazil's cane industry group's production forecast, due later in the session.

World 2010/11 coffee output revised up to 133.3 mln bags-ICO
HANOI, July 13 (Reuters) - World coffee production in the current 2010/2011 crop reached 133.3 million bags, a rise of 8.2 percent from the previous crop year, the International Coffee Organization said, revising up slightly an earlier estimate.
While output from Africa, Mexico and Central America were revised down from ICO's May report, the London-based coffee body raised estimates for Asia, Oceania and South America, based on member information, its June report seen on Wednesday showed.

U.S. 2011/12 sugar supply improves on higher imports
NEW YORK, July 12 (Reuters) - The U.S. sugar supply situation for 2011/12 has improved as imports from Mexico mitigated supply tightness in the market, the U.S. Department of Agriculture said on Tuesday.
The USDA's monthly supply/demand report for July showed the closely watched stocks-to-use ratio in 2011/12 was projected at 11.1 percent, from the previous month's 9.2 percent.The figure remains below the 15 percent preferred by the USDA.

Philippines may sell up to 200,000T sugar on top of US quota
MANILA, July 13 (Reuters) - Philippine sugar producers can export as much as 200,000 tonnes raw sugar to world markets this year on top of its U.S. quota commitments, after a three-year break, with local output set to hit the highest in three years, a senior government official said on Wednesday.
The Southeast Asian country would start selling raw sugar this month to Japan and Indonesia, with committed shipments of 35,892 tonnes, Rosemarie Gumera, manager at the policy and planning unit of the state agency Sugar Regulatory Administration (SRA), told Reuters.

Brazil sugar cane condition varied-Datagro
SAO PAULO, July 12 (Reuters) - The condition of Brazil's cane is varied, with recent frost damage in places and cold weather in other areas benefiting it, complicating an accurate assessment of outlook prospects in the world's top sugar producer, a senior Datagro analyst said on Tuesday.
Datagro's team of agronomists are currently assessing cane in Brazil, having recently revised down their 2011/12 center-south cane output projection to 536 million tonnes due to disappointing yields.

Ivorian cotton ginners raise output forecast
DAKAR, July 12 (Reuters) - The Ivory Coast ginners' association on Tuesday raised its forecast for 2011-12 cotton output, forecasting it would rise by more than 25 percent from a year ago to 220,000 tonnes due to improved security, high farmgate prices and good weather.
The cotton sector revised its forecast made in May, when it said after a first assessment that the West African country would produce 216,000 tonnes, from 175,000 tonnes a year ago.

Indonesia may not import white sugar in '12 -DGI
JAKARTA, July 12 (Reuters) - Indonesia, Southeast Asia's largest sugar consumer, may not import white sugar in 2012, given that its year-end inventory is expected to reach more than 1 million tonnes, above a safe level of 800,000 tonnes, a senior industry official said on Tuesday.
"I don't think it's necessary. White sugar stocks will be more than 1 million tonnes at year-end. We still have stocks from last year's imports," Bambang Priyono, secretary at the Indonesian Sugar Council (DGI), told Reuters.

S.Africa June India coal exports 1.2 mln T-exporters
LONDON, July 12 (Reuters) - South Africa exported 1.2 million tonnes of coal to India in June, 25 percent of its total exports of 4.8 million tonnes, little changed from May, exporters said.
China took 777,000 tonnes of South African coal in June, up from around 320,000 in May.

Euro Coal-Prices drop $1/T with oil 2 pct fall
LONDON, July 11 (Reuters) - Prompt physical coal prices fell by around $1.00 a tonne on Monday in line a 2 percent drop in oil and in the absence of fresh buying from end-users in Asia and Europe.
Few coal trades were reported during the past week as Indian and Chinese buyers held off in anticipation of weaker coal and freight values.

Ethanol, China keep US corn supply tight
WASHINGTON, July 12 (Reuters) - U.S. corn stocks will languish near 15-year lows for longer than expected as ethanol plants overtake livestock as the biggest consumers of the feed grain and China buys more American corn, according to government forecasts.
The U.S. Agriculture Department, as expected, boosted its forecasts on Tuesday of ending stocks this year and next, largely due to weaker-than-expected consumption by the livestock sector this year. But the revisions fell short of analysts' forecasts and supported prices that have fallen 15 percent from their peak on signs of healthier supplies.

Oil Trades Near Four-Day High as U.S. Supplies Counter Debt Rating Concern (Source: Bloomberg)
Oil traded near a four-day high in New York after signs of rising crude demand in the U.S. countered speculation the world’s biggest consumer of the commodity may face a credit rating downgrade. Futures were little changed, after slipping as much as 0.5 percent, as Moody’s Investors Service put the U.S. under review for a rating downgrade as talks to raise its $14.3 trillion debt limit stall. Prices advanced 0.6 percent yesterday after the Energy Department said oil supply fell 3.1 million barrels last week. They were projected to drop 1.5 million barrels.

China metals curbs may end up boosting smelting capacity
SINGAPORE, July 12 (Reuters) - China has issued fresh orders to slash capacity at steel and base metal smelters as it revamps its industrial sector, but the move could backfire and boost capacities instead as outdated units are replaced and modernised.
The world's top consumer of copper, aluminium and steel told local governments to phase out more than 2 million tonnes of aluminium, copper, lead and zinc smelting capacity in a plan to crack down on energy-heavy and polluting industries, around 13 percent more than targets set in May.

China's daily June crude steel output hits record
SHANGHAI, July 13 (Reuters) - China's daily crude steel output hit a record 1.998 million tonnes in June, up 2.8 percent from May, data from the National Bureau of Statistics showed on Wednesday.
June output was 59.93 million tonnes, 11.9 percent higher from the same period last year.

Iron Ore-Shanghai rebar 2-mth top, China daily steel output at record
SINGAPORE, July 13 (Reuters) - Shanghai rebar futures rose to their highest in more than two months on Wednesday, spurred by expectations that firm demand would continue to lift China's steel production after hitting a record daily rate in June.
China's daily crude steel output hit an all-time high of 1.998 million tonnes in June as the world's second-largest economy grew a faster-than-forecast 9.5 percent in the second quarter, defying fears it was heading for a hard landing and giving Beijing more confidence to tighten monetary policy further.

China's daily June crude steel output hits record
SHANGHAI, July 13 (Reuters) - China's daily crude steel output hit a record 1.998 million tonnes in June, up 2.8 percent from May, data from the National Bureau of Statistics showed on Wednesday.
June output was 59.93 million tonnes, 11.9 percent higher from the same period last year.

S.Africa steel sector mulls new deal to end strike
JOHANNESBURG, July 12 (Reuters) - South Africa's steel and engineering firms and their workers are evaluating a new wage proposal meant to end a week-long strike, an industry body said on Tuesday, while a strike in the fuel sector is unfolding.
The National Union of Metalworkers of South Africa (NUMSA) said thousands of workers went on strike last week seeking a 13 percent wage rise, almost three times the inflation rate.

Taiwan's China Steel cuts prices for Sept
TAIPEI, July 13 (Reuters) - China Steel , Taiwan's top steel producer, said on Tuesday it would slash domestic prices of its steel products for September by an average of 1.69 percent from July-August due to slowing global economic growth and soft demand.

U.S. aluminum May imports soar to near 2-year high
NEW YORK, July 12 (Reuters) - Shipments of aluminum into the United States rose for a second straight month in May, spiking to a near two-year peak, as a growing domestic market deficit and improved demand conditions drove the builds.
Data from the U.S. International Trade Commission on Tuesday showed May aluminum imports surge to 160,847 tonnes, up more than 50 percent from April to stand at their highest level since July 2009, when imports reached 189,671 tonnes.  

Japan June aluminium stocks up 1.4 pct m/m
TOKYO, July 13 (Reuters) - Aluminium stocks held at three major Japanese ports inched up in June from May, reflecting sluggish domestic demand and slowing deliveries from ports, trading house Marubeni Corp  said on Wednesday.
Aluminium stocks rose to 228,600 tonnes at the end of June, up 3,200 tonnes or 1.4 percent from a month earlier, increasing for a third straight month and hitting their highest level since September, when stocks stood at 230,400 tonnes.

China aluminium output seen up after June record with copper, nickel
HONG KONG, July 13 (Reuters) - China's production of primary aluminium may reach a fresh monthly record in July after hitting a fourth consecutive record in June due to new capacity, but analysts said refined copper could fall from June's record as scrap supply tightens.
China, the world's top producer of aluminium, lead, zinc and tin, finished the first half of 2011 strongly with copper, aluminium and nickel reaching monthly records in June due to increased capacity.

Seven-Month Wait for Aluminum Drives LME to Review Rules (Source: Bloomberg)
When the London Metal Exchange was founded in the days of steamships, contracts were priced three months out to reflect the time it took to get tin from Southeast Asia or copper from Chile. These days, it can take twice as long to get aluminum out of an LME-approved warehouse in Detroit.

Freeport Indonesia workers head to copper mine, port
TIMIKA, Indonesia, July 13 (Reuters) - Workers started heading by bus to Freeport McMoRan Copper & Gold's  huge Indonesia mine and its port early on Wednesday, providing evidence that an eight-day strike has ended, a Reuters eyewitness said.
The union representing around 8,000 workers struck a late deal on Tuesday with the firm for an end to the strike, but it had also agreed to end the strike on Monday and workers did not return on Tuesday as the union made more demands for new talks.

METALS-Copper gains on Chinese data; euro zone weighs
LONDON, July 13(Reuters) - Copper gained on Wednesday, supported by better-than-expected economic data from top consumer China offsetting fears of spreading debt contagion across Europe.
Three-month copper on the London Metal Exchange  was at $9,725 a tonne by 0933 GMT from a close of $9,651 on Tuesday.

PRECIOUS-Gold rises for eighth day as euro crisis worsens
LONDON, July 13 (Reuters) - Gold rose for an eighth day on Wednesday, set for its longest stretch of gains in nearly five years and trading less than half a percent off record highs after European leaders mulled the option of a Greek default and Ireland's credit rating was cut to junk.
European Union leaders will hold an emergency meeting on Friday after finance ministers acknowledged for the first time that some form of Greek default may be needed to cut Athens' debts and stop contagion spreading to Italy and Spain.

Gold Extends Advance to Record $1,589.80 on Speculation Over New Stimulus (Source: Bloomberg)
Gold for immediate delivery advanced as much as 0.5 percent to a record $1,589.80 an ounce and traded at $1,588.50 an ounce at 8:03 a.m. Singapore time.

Baltic index drops on ongoing capesize weakness
LONDON, July 12 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell for a third straight session on Tuesday, driven mainly by weaker capesize rates.
The overall index fell 1.84 percent, or 26 points, to 1,411 points.

20110714 1102 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures rally to 1-month highs, continuing to follow the lead of corn and wheat. Hotter and drier weather forecasts kept a floor underneath prices as traders rebuild risk premiums. They're concerned stressful weather will linger into the crop's critical yield-producing stage in August. Meanwhile, dollar weakness on potential--however so slight--of QE3 attracted speculative funds back into commodities, notes Mike Zuzolo of Global Commodity Analytics. CBOT November soybeans end up 21 1/2c at $13.79 3/4 a bushel.

Soybean Meal/Oil (Source: CME)
Soy-product futures jumped in unison with soybeans, buoyed by broader-based commodity buying. Soyoil led the advances, energized by spillover support from crude and optimistic outlooks for a pick-up in world vegoil demand, analysts say. CBOT December soyoil finished up 2.1% at 58.53c/pound. Meanwhile, soymeal benefited from strength in neighboring feed-grain markets. December climbed 1.5% to $360.40/short ton.

Palm oil bounces on USDA report, wider discount to soyoil
KUALA LUMPUR, July 13 (Reuters) - Malaysian palm oil futures rebounded on Wednesday as a U.S. government report showing tight grain stocks owing to rising biofuel use spurred concerns of tighter food supplies.
"Crossing the 3,000 ringgit level will happen but for now, low corn stocks and pretty firm demand will prevent that. Crude oil ," said a trader with a foreign commodities brokerage.

India's June vegoil imports to hit highest level since Nov-survey
NEW DELHI, July 12 (Reuters) - India's vegetable oil imports may have risen 28 percent in June to their highest level since November as local supplies remain poor, with expectations buying will be buoyant again next month ahead of key festival feasts, a Reuters survey showed.
Domestic oilseed stocks are declining and the new crop is only just being planted, while buyers are looking ahead to India's festival season which runs from August to October and usually includes celebratory meals.

20110714 0918 FCPO EOD Daily Chart Study. (13-07-2011)

FCPO closed : 3082, changed : +48 points, volume : lower.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : rising higher, seller reducing position as buyer testing market.
Support : 3070, 3050, 3020, 2970 level.
Resistance : 3100, 3150, 3200, 3250 level.
Comment :
FCPO closed recorded gains with slower volume transacted while soy oil moved higher.
Better export and lower inventories estimates by USDA and better than expected China economic growth supported soy oil and crude palm oil price to move higher.
Latest Reuters poll shows that average price of 2011 Malaysia palm oil futures contract down 6.5% to RM3,200 per tonnes compare to the 1st half 2011 estimate and 2012 Malaysia palm oil futures contract down 6.3% to RM3,000 per tonnes compare to 2011 estimate.
Daily chart formed am up doji bar candle positioned near middle Bollinger band level after market opened higher, slipped downward slightly and surged higher before last minutes eased little lower to closed near the high of the day.  
Chart reading still suggesting a correction range bound downside biased market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.