Thursday, July 28, 2011

20110728 1810 FCPO EOD Daily Chart Study.

FCPO closed : 3116, changed : -14 points, volume : higher.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : weakening, buyer reducing position.
Support : 3100, 3070, 3050, 3020 level.
Resistance : 3150, 3200, 3250, 3270 level.
Comment :
FCPO closed recorded small loss with little improved volume participation while overnight soy oil closed lower and currently trading little higher parring yesterday loss.
Mixed news on higher Indonesia palm oil export, industry expert Mr. Dorad Mistry view on stock and production level to stayed at high level for the 2nd half of this year and uncertain weather condition over soybean and palm tree planting area resulted FCPO to trade little lower.
Daily chart formed a doji bar candle position nearer to middle Bollinger band level after market opened lower, dive deeper quickly and recover upward through out the remaining of the trading session salvaging partial of intraday loss to closed near opening price.
Chart reading remained suggesting a side way range bound little upside 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.

20110728 1748 FKLI EOD Daily Chart Study.


FKLI closed : 1546 changed : -6 points, volume : lower.
Bollinger band reading : downside biased with possible pullback correction.
MACD Histrogram : falling lower, seller holding on.
Support : 1540, 1530, 1515, 1500 level.
Resistance : 1550, 1565, 1570, 1580 level.
Comment :
FKLI closed recorded loss with decreased volume traded doing about 6 points discount compare to cash market that closed lower while Asia markets closed mostly lower and European markets currently trading weaker with overnight U.S. market closed recorded severe losses.
Still pending deadlock over raising the federal debt limit, declined in durable goods orders in the U.S. and Standard & Poor’s saying that Greece will partially default on its debt once European officials push through a plan that will see bondholders foot part of the bill of a second bailout agreed to last week in Brussels dragged down regional banking stocks prices.
Daily chart formed a doji bar candle closed near lower Bollinger band level after market opened lower, trade range bound tested support and resistance between 1550 and 1540 levels and closed right at opening price.
Technical chart reading suggesting a downside biased market development with possible pullback correction testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110728 1541 Global Market & Commodities Related News.

Asia stocks fall but still outperform other markets
SINGAPORE, July 28 (Reuters) - Asian stocks fell ahead of a long list of corporate results on Thursday that may shed light on the year's earnings outlook, though the region continued to outperform Wall Street in July.
"Buying on dips in companies with good earnings may continue, but exporters may not fare well for the time being as long as there are concerns about the U.S. economy," said Hideyuki Okoshi, general manager at Chibagin Securities in Tokyo.

U.S. wheat falls on export fears, corn eases
SYDNEY, July 28 (Reuters) - U.S. corn and soy futures eased as rain brought relief to stressed crops in the U.S. Midwest, while expectations that weekly USDA export data will show weak wheat sales also dented sentiment.
"It continues to be a soft wheat market supported by corn and corn only, as U.S. exports continue to pencil $20 to $30 per tonne under Russian sales that are coming thick and fast," said  Scott Briggs, ANZ Banking Group's London-based commodities director in a market report.

Brazil soy trade cautious on currency measures
SAO PAULO, July 27 (Reuters) - Soybean traders in Brazil were cautiously awaiting further details of the government's decision on Wednesday to tax foreign exchange derivatives to contain the appreciation of the currency, which could complicate hedging operations.
The potentially steep tax on exchange derivatives kicked the Brazilian real  off a 12-year high reached on Tuesday, in the government's latest attempt to curb a currency rally that is hampering local and export industries.

Cargill trains Cameroon farmers to boost cocoa output
YAOUNDE, July 27 (Reuters) - U.S. agribusiness firm Cargill Inc [CARG.UL] said on Wednesday it plans to train about 500 cocoa farmers in Cameroon, to help them boost production and quality in the world's fifth cocoa grower.
Wendy Garbutt, communications executive at Cargill, said the programme will mirror a similar project in Ivory Coast, the world's top cocoa producer.

Queue of ships loading Brazil sugar shrinks again
SAO PAULO, July 27 (Reuters) - The number of ships loading sugar at Brazil's ports or preparing to load shortened again to 56 vessels, shipping agency SA Commodities/Unimar said on Wednesday, roughly half the number queuing a year earlier.
The queue of ships has been shrinking steadily after hitting a peak of 86 in early July and stood at 62 vessels a week ago.

US farm cuts may be smaller than expected-Lawmaker
WASHINGTON, July 27 (Reuters) - U.S. agricultural programs face cuts of $10-$11 billion over the next decade as Congress slashes federal spending to reduce the budget deficit, said a senior farm-state Democrat on Wednesday.
While such reductions would be on the lower end of suggestions of as high as $35 billion over 10 years, there would still be less money available when the House and Senate Agriculture committees begin overhauling the U.S. farm policy next year.

Ethiopia coffee exports hit record high
ADDIS ABABA, July 27 (Reuters) - Ethiopia earned a record $841.6 million from the export of nearly 200,000 tonnes of coffee in 2010/2011, trade data showed on Wednesday, thanks to lower output from traditional giants Colombia and Brazil and higher demand from India and China.
Africa's biggest coffee producer intends to boost its agricultural output by 2015, raising coffee to 700,000 tonnes from 300,000 tonnes, under a five-year economic development plan launched last year.

Russia grain harvest surges 58 pct from previous week
MOSCOW, July 27 (Reuters) - Russia's grain crop surged 58 percent week-on-week as the 2011 harvest gathered pace, Agriculture Ministry data released on Wednesday showed.
It said the grain harvest reached 27 million tonnes by bunker weight, with wheat accounting for 21.2 million tonnes of the total.

Brazil sees more ethanol imports this season
SAO PAULO, July 27 (Reuters) - Brazil will expand ethanol imports this year and may also boost gasoline imports to meet booming fuel demand, industry officials said on Wednesday, in another sign of Brazil's growing importance in global fuel markets.
Brazil is likely to import a further 250 million liters of anhydrous ethanol by the end of the 2011/12 sugar cane season, on top of 400 million liters brought in so far this season, Antonio de Padua Rodrigues, technical director of cane industry association Unica told Reuters.

Ivory Coast '11/12 cocoa output down 15 pct-Armajaro
LONDON, July 27 (Reuters) - Ivory Coast and Ghana 2011/12 cocoa production is expected to fall 15 percent on the year, helping switch the global market into a deficit of over 100,000 tonnes, international trade house Armajaro Trading Limited said on Wednesday.
Ideal weather conditions in West Africa led to a bumper crop in 2010/11 and Armajaro expects the coming 2011/12 crop to revert to lower production.

U.S. oil slips for 2nd day as high stocks, debt talks weigh
SINGAPORE, July 28 (Reuters) - U.S. oil fell for a second session as the United States struggled to reach an agreement on raising the debt ceiling to avoid a default, while the first release of crude stocks in the country unexpectedly boosted inventories.  
"Despite the negative macroeconomic context, supply side impacts appear to be supporting prices," Natalie Robertson, an analyst at ANZ, said.

Obama to announce new fuel economy standards Friday
WASHINGTON/DETROIT, July 27 (Reuters) - The Obama administration has reached a compromise with automakers on a new fuel economy target for cars and trucks, ending months of negotiations on this pivotal mandate for the auto industry.
Automakers' fleets will now have to average 54.5 miles per gallon by 2025, according to people familiar with the plan.

Cabot Oil Q2 tops Street; Sells assets for $285 mln
BANGALORE, July 27 (Reuters) - Oil and natural gas producer Cabot Oil and Gas Corp  posted its eighth estimate beating quarterly profit in at least nine quarters, helped by higher production and agreed to sell acreage in Wyoming, Colorado and Utah for $285 million to an undisclosed buyer.
Separately, BreitBurn Energy Partners L.P.  said it would acquire oil and gas producing properties in the same three states for the same amount from an unnamed seller.

Silver to rise but tarnished by May's rout
LONDON, July 27 (Reuters) - Silver prices look set for further gains after rallying more than 15 percent this month on gold's coat-tails, but the metal will struggle to revisit this year's record high near $50 an ounce after investors were burnt by May's heart-stopping price correction.
Silver was one of 2010's best-performing commodities and surged to a record $49.51 an ounce in April as investors favoured precious metals as a safe store of value during the euro zone debt crisis.

Vale's profit seen hitting record on ore prices
RIO DE JANEIRO/SAO PAULO, July 27 (Reuters) - Brazil's Vale, the world's second-largest mining company, is expected to more than double its second-quarter profit on stronger iron ore prices, a Reuters poll of analysts showed on Wednesday.
Analysts expect Vale  to post a profit of $7.53 billion in the quarter, compared with $3.71 billion a year earlier, according to the average estimate of five analysts. Net income is expected to rise 10 percent from $6.83 billion in the prior quarter, the poll found.

LME copper nudged down by debt woes in US and Europe
SHANGHAI, July 28 (Reuters) - Copper edged down as concerns over the deadlock in U.S. debt ceiling talks and euro debt contagion overshadowed supply worries following a declaration of force majeure by the world's biggest copper mine, Chile's Escondida.      
"News of the strike has been around for a while, which may have removed some of its bite. Also, there is just very little investor interest in copper at the moment for the force majeure news to drive the market," said CRU copper analyst Qu Yi.

Gold pauses after hitting records; US debt in focus
SINGAPORE, July 28 (Reuters) - Spot gold took a breather after hitting record highs for two sessions this week, as sentiment remained supported by the deadlocked U.S. debt ceiling talks, with both parties trying to reach a compromise.
"It looks like a downgrade has been priced in with all the sell-off in the dollar," said a Singapore-based trader. "Gold remains a good trade overall with some people targeting $1,650s or $1,660s."

20110728 1417 Local & Global Market Related News.

10:24 28Jul11 Reuters-CHINA DOES NOT PURSUE LARGE HOLDINGS OF FX RESERVES -SAFE

10:25 28Jul11 Reuters-CHINA'S FX RESERVES RISE IS NOT A DIRECT DRIVER OF COUNTRY'S INFLATION -SAFE

10:26 28Jul11 Reuters-CHINA WILL CONTINUE TO DIVERSIFY INVESTMENT OF ITS FX RESERVES -SAFE

10:26 28Jul11 Reuters-CHINA WILL WIDEN CHANNELS FOR CAPITAL OUTFLOWS -SAFE

10:27 28Jul11 Reuters-CHINA WILL GRADUALLY MAKE YUAN CONVERTIBLE ON CAPITAL ACCOUNT

10:36 28Jul11 Reuters-China to press ahead with FX reserves diversification

12:44 28Jul11 Reuters-CHINA'S PREMIER WEN SAYS VISIT TO TRAIN DISASTER SITE DELAYED DUE TO HIS MEDICAL PROBLEMS

12:46 28Jul11 Reuters-CHINA'S PREMIER WEN DID NOT SPECIFY NATURE OF ILLNESS THAT CAUSED HIM TO BE HOSPITALIZED FOR 11 DAYS

12:29 28Jul11 Reuters-CREDIT SUISSE SAYS Q2 NET PROFIT 768 MLN

12:29 28Jul11 Reuters-REUTERS POLL FOR CREDIT SUISSE Q2 NET PROFIT WAS 1.020 BLN

12:29 28Jul11 Reuters-CREDIT SUISSE SAYS END-Q2 TIER 1 RATIO 18.2 PCT VS 18.2 PCT REPORTED END-Q1

12:30 28Jul11 Reuters-CREDIT SUISSE SAYS Q2 GROUP NET NEW ASSETS IN PRIVATE BANKING

12:30 28Jul11 Reuters-CREDIT SUISSE SAYS Q2 GROUP NET NEW ASSETS  14.2 BLN IN REUTERS POLL

12:31 28Jul11 Reuters-CREDIT SUISSE SAYS Q2 INVESTMENT BANK PRETAX INCOME 231 MLN

12:34 28Jul11 Reuters-CREDIT SUISSE SAYS TO CUT 4 PCT OF JOBS

BEIJING, July 28 (Reuters) - China will press ahead with diversification of its $3.2 trillion foreign exchange reserves, and does not pursue large-scale currency holdings, the State Administration of Foreign Exchange said on Thursday. The foreign exchange regulator also pledged to widen the channel for capital outflows and take gradual steps to make the yuan convertible on the capital account.

KUALA LUMPUR, July 28 (Reuters) - Malaysia's Petronas on Thursday said it has made two significant gas discoveries in the shallow water areas offshore the west coast of Sabah state.

20110728 1411 Palm Oil Related News.

JAKARTA, July 28 (Reuters) - Indonesia's palm oil exports are seen at 16.5 to 17 million tonnes this year, up as much as 9 percent from 2010, as production is seen rising to 23 million tonnes, said an executive at the nation's palm oil association (GAPKI) on Thursday.

12:56 28Jul11 RTRS-VEGOILS-Palm oil drops U.S. debt jitters, improved soy weather
 (Adds details, comments, quotes)
    * Palm oil futures could drop as low as 2,800 rgt -Mistry
    * U.S. debt talks still deadlocked
    * Some rains in the U.S. Midwest spur some profit-taking

    By Niluksi Koswanage
KUALA LUMPUR, July 28 (Reuters) - Malaysian palm oil futures dropped 1.2 percent on Thursday as concerns over a looming global debt crisis and improved weather for parched U.S. soy crops prompted investors to cut back positions.
A possible U.S. credit rating downgrade has weighed on financial markets, adding to weak sentiment in palm oil futures that have lost 18 percent so far this year.
A turn to better crop weather in the U.S. as well as bearish estimates for ample palm oil supply from top industry analyst Dorab Mistry further pressured the vegetable oil markets.
"Sentiment is really weak. We could be seeing more profit taking in the days to come but the hot weather has started to hurt soy yields in the U.S.," said a trader with a foreign commodities brokerage.
"Also, stocks are growing in palm oil producers like Malaysia and Indonesia, so we are in for volatile trade," he added.
By midday, the benchmark October contract on the Bursa Malaysia Derivatives Exchange dropped 38 ringgit to 3,092 ringgit ($1,051) per tonne after going as low as 3,085 ringgit.  
Traded volumes were light at 7,357 lots of 25 tonnes each, compared to the usual 12,500 lots as investors remained cautious.
Technicals were negative. Reuters analyst Wang Tao said Malaysian palm oil will fall further to 3,064 ringgit per tonne, as it has dropped below a rising channel.
Leading palm oil analyst Dorab Mistry said the market could drop as low as 2,800 ringgit in September as stocks in Malaysia remain stubbornly high.
Crude oil, a barometer for commodities and the global economy, fell further in Asian trade as U.S. inventories rose and debate on raising the U.S. debt ceiling before an Aug. 2 deadline to avoid default went unsettled.
U.S. soyoil for August delivery fell 0.2 percent on Thursday, aided by rain relieving stressed crops in the United States although signs of improved China demand for soybeans limited losses.  
China is likely to start importing more soybeans and vegetable oils from July after weak purchases in past months, said a Hamburg-based oilseeds analysts Oil World on Tuesday.
The most active May 2012 soyoil on China's Dalian Commodity Exchange
fell 0.5 percent.

08:15 28Jul11 Reuters-STUBBORNLY HIGH MALAYSIAN PALM OIL STOCKS MAY SEE PRICES  FALL TO 2,800 RINGGIT LOW IN SEPT-ANALYST DORAB MISTRY

08:15 28Jul11 Reuters-MALAYSIAN PALM OIL TO FIRST RANGE BETWEEN 3,100 RINGGIT TO 3,300  RGT IN NEXT 6 WEEKS ON U.S. WEATHER CONCERNS - MISTRY

08:15 28Jul11 Reuters-INDONESIA'S 2011 PALM OIL OUTPUT SEEN AT 25.5 MLN TONNES, UP  13.3 PERCENT FROM 2010 - MISTRY

08:15 28Jul11 Reuters-MALAYSIA'S 2011 PALM OIL OUTPUT SEEN AT 19 MLN TONNES, UP 11.8  PERCENT FROM 2010 - MISTRY

08:15 28Jul11 Reuters-GLOBAL VEGOIL SUPPLY GROWTH OUTSTRIPPING DEMAND GROWTH BY 2.7  MLN TONNES, FIRST TIME IN THREE YEARS - MISTRY


KUALA LUMPUR, July 28 (Reuters) - Expectations for rising Southeast Asian palm oil production in the second half of this year have prompted analysts to revise forecasts upwards.
Industry analyst Dorab Ministry revised up estimates for Indonesia and Malaysia, the world top two producers who account of 85 percent of total output.
The market tends to price in Malaysian production data that is issued regularly compared to Indonesia, even though it is the world's largest producer and exporter of the vegetable oil.
Following are estimates for 2011 Indonesian and Malaysian production and new changes:

             MALAYSIAN PALM OIL OUTPUT FOR 2011 except for USDA
                           FORECAST        CHANGES
                           (millions of tonnes)
Official government data     17.6       17.0 in 2010          
 
Dorab Mistry                     19.0       earlier forecast 17.3  
Oil World                          18.6       earlier forecast 17.8    2010 estimate of 16.0
USDA *                            17.5       no change      previous year 17.8
Ganling                              17.5       nil  
         
            INDONESIAN PALM OIL OUTPUT FOR 2011 except for USDA
                           FORECAST              CHANGES
                            (millions of tonnes)
Official government data     24.4       earlier estimate 22-23    2010 forecast of 23.2  
Dorab Mistry                     25.5       earlier forecast 25.0  
Oil World                          24.0       earlier forecast 23.7      2010 estimate of 22.2
USDA *                            23.6       no change                     previous year 22.0  
Ganling                              23.2       nil



07:12 28Jul11 -VEGOILS-U.S. crop developments to drive palm oil futures
KUALA LUMPUR, July 28 (Reuters) - The following factors are likely to influence Malaysian palm oil futures and other vegetable oil markets on Thursday.
   
FUNDAMENTALS
Malaysia palm oil futures rose 0.4 percent in light trade on Wednesday on strong soy markets as China resumed buying and dry weather in the United States, although gains were limited over concerns of a looming U.S. debt crisis.

U.S. wheat futures rallied more than 1 percent on Wednesday as an annual tour of spring wheat fields in the northern U.S. Plains appeared to verify fears that production would fall short of expectations.

Oil prices fell on Wednesday as data showed the first release of crude from the U.S. petroleum reserve unexpectedly pushed up domestic inventories last week, adding to concerns over weak economic data.
     
MARKET NEWS
Commodities fell in thin volumes on Wednesday as the dollar rebounded on uncertainties over U.S. debt talks, with oil leading the decline as U.S. crude stockpiles mounted.
U.S. stocks suffered their  worst day in eight weeks on Wednesday as lackluster earnings and weak economic data hit investors already nervous about faltering debt talks in Washington, while the U.S. dollar rebounded following a sell-off this week.


08:15 28 Jul11 -Stubbornly high stocks to drag on palm oil futures-Mistry By Niluksi Koswanage
KUALA LUMPUR, July 28 (Reuters) - Palm oil futures could drop as low as 2,800 Malaysian ringgit ($947.55) in September as stocks in No. 2 producer Malaysia remain stubbornly high, a top analyst said on Thursday.  
That represents a drop of around 29 percent from 2011 high of 3,967 ringgit in February as Godrej International's Dorab Mistry said a high output cycle remains in force and will lead to record high stocks for Malaysia by early December.
But price declines could be limited as a palm oil discount to competing soyoil would widen to a new 2011 peak of $250 per tonne, kicking in more demand, Mistry said. The narrowest discount stood at $2 per tonne in late February, according to Reuters data.
"The legacy of high stocks will continue to pressure prices for some time," Mistry told an industry conference in Sydney.
"I am expecting prices to touch a low in September and to scrape along that bottom for at least four to six weeks. Then a gradual recovery will ensue," he added.
But before that, palm oil futures will range between 3,100 ringgit and 3,300 ringgit in the next six weeks from now as concerns over hot weather affecting the U.S. soy crop has sparked a rally in grains and vegetable oil markets.
"(Malaysian) August crude palm oil production will be affected somewhat by the Ramadan holidays and export demand in summer will be strong," Mistry said, referring to a Muslim fasting observance when estate workers take extended leave.
"As we go into September, it could be a different story."

18:32 27Jul11 -Indonesia's Astra Agro fails to sell 4,000 T palm oil
JAKARTA, July 27 (Reuters) - Astra Agro Lestari , Indonesia's largest listed plantation firm, failed to sell 4,000 tonnes of crude palm oil (CPO) in an auction on Wednesday due to low bids, the firm said in a statement.  
Astra offered the CPO at 8,395 rupiah to 8,645 rupiah per kg.

20110728 1220 Soybeans Related News.

Timing is key to watering soybeans (Source: www.agriculture.com)
Dave Mowitz 07/27/2011 @ 11:04am

Building on years of field research, University of Nebraska agronomists are rewriting the rules on how to irrigate soybeans. Their approach is to delay irrigation on beans until early pod formation. The crop, instead, relies on stored soil moisture and early-season rainfalls to get by until that point.
“We've learned a lot about how to irrigate soybeans that is quite remarkable compared to how most farmers now irrigate,” points out University of Nebraska agronomist Ken Cassman. His observations build on years of research by Cassman's colleague, soybean geneticist Jim Specht, into soybeans' drought resistance and the best methods of irrigation.

Too much too soon
Typically, farmers plant soybeans in early May and begin irrigating in June. In years with average or above-average early-season rainfall, that can result in too much water being applied to plants. Too much moisture can result in taller and leafier soybean plants that are more susceptible to disease and lodging at harvest.

Avoiding too much early irrigation, on the other hand, encourages plants to develop stronger, healthier root systems that grow deeper. “You defer irrigation because there's typically enough stored moisture and enough rainfall even in dry years to create a plant that can achieve high yields,” Specht explains.

Soybeans need about 19 inches of water from planting in early May through harvest to yield about 85 bushels. If soybeans don't get any of that from early-season rains, producers will have to catch up with watering once deferred irrigation begins in early July. But if early-season rains are normal, the deferred approach could reduce the amount of irrigation water applied throughout the season.

Specht and Cassman's research has been incorporated into an online irrigation scheduling program called SoyWater. Developed by Specht and Jessica Torrion at the University of Nebraska, it is available online at www.soywater.unl.edu. This online spreadsheet offers producers access to the two most popular irrigation strategies in practice.

Soil water balance method
With the first approach, called the Soil Water Balance Method, the user chooses an irrigation trigger, which represents a percentage depletion of the maximum water (field capacity) in the crop root zone. This depletion is caused by crop withdrawal of soil water.

Water balance method
The Water Balance Method, based on Specht's research, is advisable for fields with soils that have a high water-holding capacity (such as silty clay loam soils) and in years when the field water content is at full capacity at planting or emergence. In this strategy, the producer allows the soybean crop to extract the water it needs for vegetative growth and early reproductive development from the stored soil water present at emergence and any postemergence rainfall stored in the root zone prior to the R3 stage.

20110728 1118 Global Market & Commodities Related News.

GLOBAL MARKETS: Asia stocks fall but still outperform other markets
SINGAPORE, July 28 (Reuters) - Asian stocks fell ahead of a long list of corporate results on Thursday that may shed light on the year's earnings outlook, though the region continued to outperform Wall Street in July.
"Buying on dips in companies with good earnings may continue, but exporters may not fare well for the time being as long as there are concerns about the U.S. economy," said Hideyuki Okoshi, general manager at Chibagin Securities in Tokyo.

Obama to announce new fuel economy standards Friday
WASHINGTON/DETROIT, July 27 (Reuters) - The Obama administration has reached a compromise with automakers on a new fuel economy target for cars and trucks, ending months of negotiations on this pivotal mandate for the auto industry.
Automakers' fleets will now have to average 54.5 miles per gallon by 2025, according to people familiar with the plan.

OIL: Oil falls as US inventories rise, debt talks falter
NEW YORK, July 27 (Reuters) - Oil prices fell on Wednesday as data showed the first release of crude from the U.S. petroleum reserve unexpectedly pushed up domestic inventories last week, adding to concerns over weak economic data.
"(The inventory report) was clearly a disappointment ... although we are trading much more off of the problems of the broader financial market and debt ceiling", said Bill O'Grady, chief investment strategist at Confluence Investment Management in St. Louis, Missouri.

Japan oil sales seen up 2.2 pct if reactors shut
TOKYO, July 27 (Reuters) - Japan's total oil product sales are expected to rise 2.2 percent in the financial year to next March if local authorities keep nuclear reactors shut after routine maintenance due to safety concerns after Fukushima, the nation's top energy forecaster said on Wednesday.
Under that scenario, sales of thermal fuel to utilities would be expected to rise 138.1 percent to 14.7 million kilolitres (92.5 million barrels)  in 2011/12 from 6.2 million kl a year earlier, the Institute of Energy Economics for Japan (IEEJ) said in its latest report.

Ivory Coast oil refinery to boost capacity by 25 pct
July 26 (Reuters) - Ivory Coast's 80,000 barrel-per-day (bpd) refinery plans to boost its capacity by 25 percent in the next decade to 5 million tonnes a year, from 4 million now, its director general Joel Dervain told Reuters on Tuesday.
The SIR refinery, one of the biggest in sub-Saharan Africa, supplies fuel domestically and exports to several West African countries.

Iran may cope with India oil money loss, but no more
DUBAI, July 27 (Reuters) - International sanctions designed to stop Iran's disputed nuclear programme would only really bite if its other big Asian buyers follow India's lead and bow to U.S. pressure to cut the flow of oil money to Tehran.    
The Islamic Republic will forego around $45 million a day or a total of $1.4 billion in August -- if it halts around 400,000 barrels per day (bpd) of crude exports to India -- where refiners have run up a $5 billion debt since India's central bank blocked payments to Iran after pressure from Washington.

NATURAL GAS: August natural gas settles flat at expiration
NEW YORK, July 27 (Reuters) - Most U.S. natural gas futures ended slightly lower on Wednesday for a third day, but the front month August contract expired unchanged, underpinned by warmer late week forecasts for the Northeast and Midwest.
"Futures ended (expired) right near cash. It's still hot and tropical activity is picking up, but there's no shortage of gas," said Ed Kennedy, senior vice president at INTL Hencorp Futures in Miami.

EURO COAL: Sep DES trades at $125/T
LONDON, July 27 (Reuters) - Prompt physical coal prices were stable on Wednesday after creeping higher by $1.50 a tonne during the previous three days on the South African strike and firmer oil.
"There are more of the usual players active in the market this week than last week but few trades are going through, liquidity's still very low," one European trader said.

COMMODITIES: Oil tumble, dollar rebound leads broad decline
NEW YORK, July 27 (Reuters) - Commodities fell in thin volumes on Wednesday as the dollar rebounded on uncertainties over U.S. debt talks, with oil leading the decline as U.S. crude stockpiles mounted.
"We think a sharper sell-off in the US equity markets will likely materialize by week's end and climax on Monday if no (debt) agreement is reached, in which case we could see the divergence we are seeing between various markets snap, leading to broad-based declines in all complexes, except perhaps in precious metals and foreign currencies," said Edward Meir, analyst at MF Global in New York.

20110728 1115 Local & Global Economic Related News.

Malaysia’s local-currency credit rating was lowered one step by  Standard & Poor’s after the company revised its methodology for grading sovereign debt. The long-term localcurrency rating was cut to A from A+, with a stable outlook. That is the fifth-lowest  investment grade.  
  • The foreign-currency rating was affirmed at A-, one step below the local debt.   
  • Malaysia’s credit rating is constrained by a “moderately weak fiscal and debt profile” for  its category. The country’s increasing subsidies have led to a “slow pace of fiscal  consolidation” and the government’s plans to change the system and introduce a goods  and service tax may be gradual given the political implications, S&P said. (BT)    

Malaysians' fear of crime has improved overall, from 52.0% in a survey conducted from  Nov 2010 to Jan 2011, to 48.9% in a survey in Mar-May 2011, said  TNS Research  International Malaysia (TNS RI). It had measured indexes in three areas, namely fear of  crime related to robbery and burglary, vehicle- and violence-related crime. (Bernama)  

The cabinet decided to add another National Key Result Area (NKRA) to the list of six to  make it seven altogether. PM Datuk Seri Najib Tun Razak said the new NKRA dealt with  the rising cost of living. The effort covers the main issues that affect the rakyat and not  exclusively food, but also other things that have direct bearing on the people’s well-being.

  • “We may also look at the supply chain to see how we can liberalise it to allow more food  imports. Another possible plan was to use idle land for food production,” he said.  
  • The existing measures such as price control mechanisms and subsidies for most  essential items would continue. Initiatives such as the 1Malaysia Clinic and 1Malaysia  Shop would be expanded. (Bernama, The Star)    

Malaysian companies have registered a potential sales of more than RM22m at the threeday  global semiconductor show, SEMICON West 2011, exceeding expectations and  beating the 2008 show figures (RM6.4m). Products and services on display included  precision machine parts and components, test probes, test contactor solutions, Automatic  Test Equipment (ATE) for semiconductor and electronic components and Test &  Measurement Instrument (T&MI) that is used in integrated circuit (IC) design and manufacturing. (Bernama)  

Six Bumiputera companies, with a combined market capitalisation of close to RM1bn, have  been listed on Bursa Malaysia under the government's  Skim Jejak Jaya Bumiputera (SJJB), said Deputy Finance Minister Datuk Dr Awang Adek Hussin. "We have 20 companies in the pipeline to be listed over the next two years. We can get about 10  companies by this year and next year," he noted. The remaining companies to be listed  under the scheme were involved in various sectors including information technology (IT),  biotech, manufacturing as well as oil and gas, he added. (Bernama)

The Bank of Thailand  said inflation risks exceed threats to economic expansion and  signaled planned spending by the nation’s incoming leader, Yingluck Shinawatra, may add  to price pressures. The monetary policy committee “judged that the risks to inflation  outweighed the risk to growth especially in light of continued fiscal stimulus, which may add  to inflationary pressure,” according to the minutes of the July 13 meeting released on the  central bank’s website. (Bloomberg)  

South Korea’s economy expanded at a slower pace of 0.8% qoq in 2Q (+1.3% in 1Q) as  a stronger won and Europe’s fiscal crisis weighed on exports. That matched the median  estimate. The economy grew 3.4% yoy, below estimates of a 3.5% expansion.(Bloomberg)  

China: Industrial profits jump 29% in first half on year
Chinese industrial companies’ profits grew at a faster pace even after the government raised interest rates and tightened credit to counter inflation. Net income climbed 28.7 percent in the first six months to CNY 2.41trn (USD 374bn) from a year earlier, the National Bureau of Statistics said on its website today. That compares with a 27.9% gain in January through May. Climbing profits for companies such as Anhui Conch Cement Co, the nation’s biggest cement producer, fuel investment that is underpinning the economy’s expansion. The International Monetary Fund forecasts that China’s gross domestic product will rise 9.6% this year, also bolstered by a government plan to build millions of low-cost homes. (Bloomberg)

Japan: Targets JPY10trn for third post-quake package
Japan will spend about JPY 10trn (USD129bn) in a third disaster recovery package to be put together after Prime Minister Naoto Kan fulfills a pledge to resign, the ruling party’s No. 2 official said. The government will fund the extra budget with deficit bonds that will be repaid over a period of five to 10 years with tax increases, Katsuya Okada, secretary-general of the Democratic Party of Japan, told reporters in Tokyo. “The responsibility for compiling the third supplementary budget and getting it passed through parliament will belong to the next prime minister,” Okada said. While the timing of the decision is up to Kan, it “won’t be too long” before he resigns, Okada added. (Bloomberg)

Australia: Consumer-price advance sends currency to record
Australian consumer prices gained more than economists forecast last quarter on higher costs for food, clothing and health care, sending the nation’s currency to a record-high against the USD. The consumer price index rose 0.9% from the previous three months, the Bureau of Statistics said in Sydney. That was more than the 0.7% median estimate in a Bloomberg News survey of 25 economists. Prices were 3.6% higher than a year earlier, compared with the median forecast of 3.4%. The report reflects lingering effects of floods in the nation’s northeast that shut mines and wiped out crops and were followed by a cyclone that tore through sugar- and banana- producing areas. Reserve Bank of Australia Governor Glenn Stevens, who has paused interest-rate increases for the longest stretch since 2007 to gauge fallout from Europe’s debt crisis and weaker local data, this week said the inflation data will help determine the trajectory of monetary policy. (Bloomberg)

EU: Rating companies find spines to savage sovereigns: Euro credit
Rating companies, lambasted by policy makers for exacerbating the credit crisis with lax grades, are slashing their assessments of government creditworthiness even as they face increased regulation. Greece, Ireland and Portugal have all had at least one rating cut to junk in recent months. Now, Moody’s Investors Service, Standard & Poor’s and Fitch Ratings are poised to remove the US’s top grade as lawmakers bicker over budget cuts before raising the nation’s debt ceiling to avert default. Moody’s four-level downgrade of Portugal on 5 July prompted calls from German Finance Minister Wolfgang Schaeuble to “curb the influence of the rating companies.” Ireland’s descent to junk on 12 July was “incomprehensible,” said European Commission President Jose Barroso. (Bloomberg)

US: Mortgage applications fell 5% last week on refinancing
Mortgage applications in the US dropped last week, led by a decrease in refinancing as borrowing costs rose. The Mortgage Bankers Association’s index declined 5% in the period ended 22 July from the prior week, the Washington- based group reported. The group’s refinancing measure decreased 5.5% from the prior week, while the purchase gauge fell 3.8%, taking it to the lowest level since February. An excess of distressed properties may be driving down home prices, restraining improvements in the housing market. Unemployment above 9% could also be preventing a sustained recovery. (Bloomberg)

US: Orders for US durable goods fall in sign investment to cool
Orders for US durable goods unexpectedly dropped in June, raising the risk that a slowdown in business investment will weigh on the world’s largest economy in the second half of the year. Bookings for goods meant to last at least three years fell 2.1% after a 1.9% gain the prior month that was smaller than last reported, the Commerce Department said. Demand for business equipment, including machinery and computers, also dropped. Manufacturers face a slowdown in consumer spending just as they are poised to rebound from the parts shortages caused by Japan’s earthquake, indicating production may keep cooling. Companies are also cutting back on hiring, which may further temper household demand. (Bloomberg)

US stocks fall on debt concern, drop in durable goods orders
US stocks fell, dragging the Standard & Poor’s 500 Index down the most in almost two months, as lawmakers indicated they were no closer to reaching a compromise on the federal debt limit. Technology and industrial stocks led declines among 10 S&P 500 groups. Caterpillar Inc. and General Electric Co. decreased more than 2.4% after a government report showed orders for durable goods unexpectedly decreased. Corning Inc. dropped 7.2% after reducing its forecast for glass demand amid lower television-sales projections. Amazon.com Inc. rallied 3.9% after its Kindle e-reader and digital-media services helped second-quarter results beat analysts’ estimates. The S&P 500 slipped 2%, its biggest decline since 1 June, to 1,304.89 at 4pm in New York. The Dow Jones Industrial Average retreated 198.75 points, or 1.6%, to 12,302.55. Treasury yields, which dropped yesterday on speculation lawmakers would reach an accord on the nation’s debt ceiling, rose today as the political stalemate continued. (Bloomberg)

New orders for big-ticket US manufactured goods fell sharply in Jun as demand  weakened for aircraft and defense items, the Commerce Department said. Durable goods  orders dropped 2.1% mom in Jun (+1.9% in May), to their lowest level since Feb,  according to the department's seasonally adjusted data. Economists expected a 0.5% rise  in orders in Jun. (AFP)

20110728 1113 Malaysia Corporate Related News.

KLCI chart reading : downside biased.


Petronas said no deal with joint venture
Petroliam Nasional Bhd (Petronas) has disputed claims by a Malaysian-Iranian-Chinese (MIC) joint venture that they are poised to be awarded a contract to develop a marginal oil field. Earlier this week, it was reported that China's largest petroleum refiner Sinopec Petroleum Services (Sinopec) was poised to take a major stake in a planned RM2.06bn venture to help develop a Petronas marginal oil field located off the coast of Terengganu. At a press conference held on Monday, it was disclosed that under the deal, Sinopec will hold a 40% stake in the consortium, while Sabio Oil & Gas SB (SOG), a unit of Sabio Technology Bhd (STB), and Iranian group International Oil and Design and Construction SB (IODC) will have 30% stakes, respectively. (BT)

Japan's Proto buys MTM Multimedia for RM110m
Japan's Proto Corp is buying MTM Multimedia SB, publisher of Motor Trader and Autocar Asean magazines, for RM109.67m. Proto announced on the Tokyo Stock Exchange yesterday that it is acquiring all 500,000 MTM shares from two individuals. MTM had set a new trend in the Malaysian new and used car classifieds market through Motor Trader, when it started in 1998. The magazine offered the placement of a colour photo of the vehicle that is being put up for sale alongside its relevant details. This opened up a whole new approach to selling new and used cars. (BT)

Lion Forest eyes plantation land
Lion Forest Industries (LFIB) intends to grow its plantation business by acquiring land in Southeast Asian countries to undertake the cultivation of oil palm, rubber and other industrial crops. In a statement to Bursa Malaysia yesterday, LFIB said it was eyeing assets in Indonesia, Cambodia, Thailand, Vietnam, Myanmar and Laos. For a start, LFIB is acquiring close to 10,000ha of plantation land in Cambodia for USD3.9m (RM11.5m) cash from Cambodian government. The purchase will grant LFIB the concession rights for these assets for a period of more than 70 years. (Financial Daily)

Insas provides Ho Hup with RM75m loans
Insas Bhd unit Insas Credit & Leasing SB has extended a RM75m financing facility to Ho Hup construction Bhd subsidiary that will help to lift the property developer out of its financial stress. Interestingly, Insas, which is controlled by Datuk Thong Kok Khee, has emerged as substantial shareholder in IT-based firm Formis Resources, which recently acquired a 20.59% stake in Ho Hup. In an announcement to Bursa Malaysia yesterday, Ho Hup said the company and its 70%-owned unit Bukit Jalil Development SB had accepted the RM75m term loan facility from Insas Credit. The funds will be utilized to redeem and /or refinance a loan from CIMB Bank. (Financial Daily)

AIC, Jotech and AutoV set to merge via share swap
The proposed merger of AIC Corp Bhd, Jotech Holdings Bhd and AutoV Corp Bhd will be done via a share swap that would be priced at a slight premium over the last traded market prices of all three companies, a source close to the deal said. “Shareholders of all three companies will receive shares in a new company that will assume the listed status of one of the three companies, in exchange for their existing shares,” the source explained. Another key aspect of the deal is that Datuk Goh Tian Chuan, who has stakes in all the three companies, will not be selling out but will emerge as a major shareholder of the new company, named Temasek Formation Holdings Bhd (which is not related to Singapore's Temasek Holdings). (StarBiz)

SP Setia unit ends China deal
SP Setia’s subsidiary, Setia (Hangzhou) Development Co Ltd, and Hangzhou Ju Shen Construction Engineering Ltd have terminated their joint-venture (JV) contract for the development of a mixed property project on 25 acres in Zhejiang, China. SP Setia said in a statement to Bursa Malaysia that the conditions precedent set out in the JV contract had not been met as at Wednesday. It was announced earlier that the JV contract was conditional on getting the approval from China's Ministry of Commerce or the approval authority that it entrusted. The first phase of the project, comprising commercial and residential units over five acres, was said to have a gross development value of RM500m. The signing of the contract with Hangzhou Ju Shen to form a limited liability JV company to develop and operate the mixed property development in the growth corridor of XiaoShan, Hangzhou, took place in October 2009. (StarBiz)

CIMB Group Holdings will next week open a representative office in Mumbai, India, and  form a working partnership with the Kotak Mahindra  Group, one of the country's top  banking and financial services group, according to a source. It is also expected to form an  alliance with some partners in Sri Lanka to tap on the burgeoning investment banking  opportunities in the island state.  
  • Group CEO  Datuk Seri Nazir Razak said recently that CIMB's strategy for the India,  China and Middle East regions would be to form working partnerhips with established  players there, rather than acquire equity stakes. (BT)   

Property prices in Nusajaya in Iskandar Malaysia, Johor, are expected to rise further as  UEM Land Holdings and Iskandar Investment Bhd (IIB) plan to transform the area into a  "smart+connected" community. In the last five years, property prices had increased by 10- 30% in East Ledang, Nusa Idaman and Horizon Hills in Nusajaya, said UEM GM Zamri  Ibrahim.  
  • He said houses sold at RM300,000-plus in Nusa Idaman in 2008 are now selling at more  than RM400,000 each. Those launched in East Ledang  around the same year have  seen price increases of RM500,000 to above RM600,000.   
  • UEM and IIB yesterday signed a collaboration agreement with network system provider  Cisco to develop an information and communications technology (ICT) and services  smart city masterplan for Nusajaya. (BT) 

Two leading mobile operators, Vodafone Essar and  Axiata’s Indian associate, Idea  Cellular, are understood to have increased pre-paid tariffs by up to 20 per cent, in line with  the recent move by SingTel’s Indian associate Bharti. According to industry sources, the  tariffs were increased few days ago but the details of new tariff could not be obtained.  (Economic Times of India)

Ingress Corporation has secured contracts worth RM388m, its executive  vice-chairman  Datuk Rameli Musa announced. The contracts, secured by the group's power engineering  and projects division, are expected to contribute to a better performance anticipated by the  group for its current financial year ending Jan 31, 2012. (Bernama, Financial Daily)  

Ingress Corp  has high hopes of participating in the manufacture  of components for Proton Holdings' global small car. "We are interested and I think we have high chance of  being invited to participate. But we have not been informed of anything yet," said executive  vice chairman, Datuk Rameli Musa. (Malaysian Reserve)  

Ingress Corp has submitted tender for several projects including the Ampang line light rail  transit (MRT) extension and RM1.5bn worth of jobs from Keretapi Tanah Melayu (KTM).  Executive vice-chairman cum CEO Datuk Rameli Musa said Ingress had submitted the  tender for KTMB works in March and the results would be announced in September.  (Starbiz)

Syarikat Prasarana Negara Bhd has successfully priced its RM2bn 10-year and 15-year  Islamic medium term notes or sukuk issued yesterday, under its RM4bn nominal value  sukuk programme guaranteed by the Government.
  • The sukuk programme is mainly to part-finance the  Kelana Jaya and Ampang LRT  Line Extension Project (LEP) and other infrastructure improvement initiatives by  Prasarana. The sukuk carries a semi-annual profit rate of 4.15% per annum for the  RM800m 10-year tranche and 4.35% per annum for the RM1.2bn 15-year tranche. 
  • Due to the overwhelming response from investors, the sukuk was priced at the tightest  end of the final price guidance which demonstrates strong investor appetite and ample  liquidity in the market for high grade papers, reflected primarily by the strength of the  government guarantee for it. (Bernama)    

Japanese steel mills in Malaysia could shift their operations elsewhere if Megasteel Sdn  Bhd gets it way in petitioning to impose additional safeguard measures for imports of  certain hot-rolled coils (HRC). The Ministry of International Trade and Industry (Miti) is  expected to decide on the issue by 29 July but has the right to delay its decision by one  more month. • It is understood that foreign owned steel players are far from happy about the situation  and are prepared to refer the matter to the World Trade Organisation.
  • Sumiputeh Steel Centre Sdn Bhd MD H Hank Yoshioka said, “Internationally, steel  import duties are 0-5%. The current 25% imposed in  Malaysia is already higher than  normal and if we need to pay the additional safeguard duty of 35% we will be out of  business.”  
  • The Malaysian Iron and Steel Industry Federation (Misif) president Chow Chong Long  said the additional 35% duty will affect a wide range of industries including the electrical  and electronics, automotive as well as other export based manufactures. (Malaysian  Reserve, Financial Daily)    

Deputy Transport Minister Datuk Abdul Rahim Bakri is confident that the ongoing Transport  Ministers meeting of the  Brunei-Indonesia-Malaysia-Filipina-East Asean Growth Area (BIMP-EAGA), at Cagayan De Oro in the Philippines, will result in some form of regional  cooperation in the area of transportation and communications. He said cooperation in the  sector would be necessary and timely as it would be in line with present efforts to create an  Asean community by 2015.

  • Abdul Rahim said the growth triangle could become a driving force to establish  cooperation and facilitating the venture into the various economic areas of BIMP EAGA  which has a market potential of 60m people where transportation and communications  were the major drivers. Abdul Rahim also announced  that Kota Kinabalu, Sabah has  been elected as the host for next year's BIMP EAGA  Transport Ministers meeting.  (Bernama)    

Malaysia Airlines (MAS) has restructured its sales unit following the departure of its senior  general manager of sales and marketing Datuk Bernard Francis. MAS has relocated all  heads of regional sales to its headquarters in Subang to ensure better coordination and  quicker response in terms of strategising. “We have restructured (the sales department)  and that position does not exist (anymore),” Tengku Datuk Azmil Zahruddin said.

  • He added that “we have a strategy in place (for sales)” but he did not elaborate. Azmil is  also the commercial director for the airline, a position he said he had held for the past  year. (Star Biz)      

Chery Alado, which holds the rights to import and sell Chery cars, plans to invest up to  RM300m over the next five years on a new assembly plant in the country. "Should  everything go according to plan, the plant would make Malaysia the Southeast Asian hub  for Chery's right hand drive models," said CEO Paul Ng.

  • Currently, the company sells three Chery models - Eastar, Tiggo and A5. The company,  which sold 3,200 units of vehicles last year, aims to grow its sales by at least 20% to  3,800-3,900 units this year. (BT)      

Favelle Favco Bhd  received letters of intent worth RM79.3m for the supply of offshore  cranes and winches. The purchase orders were given to Favco’s units, namely Favelle  Favco Cranes (M) Sdn Bhd, Favelle Favco Cranes Pty Ltd, Favelle Favco Cranes Pte Ltd  and Favelle Favco Winches Pte Ltd. (BT)

Vale officially opened the HQ of its subsidiary  Vale Malaysia Manufacturing in Perak  where the company intends to create an industrial hub comprising of  a major iron ore  distribution centre and other related industries in Teluk Rubiah. The project will take three  years to complete. Once the distribution centre is operational, iron ore from Brazil will be  transported in Valemax vessels of 400k deadweight tonnage to Teluk Rubiah. From there  the blended ore will be distributed to customers in the Asia-Pacific region such as China,  Japan, Australia and also Malaysia. (Malaysian Reserve)

Admuda Sdn Bhd has signed an MOU with CGS International (Chongqing) Co Ltd to build  a RM160m sugar refinery plant in Kuching.  Admuda director Datuk Raja Sulaiman Raja  Sharif said the new plant would be the first sugar  refinery in Sarawak to cater to sugar  demand in Sabah and Sarawak. He said, “The refinery shall have a minimum production  capacity of 300 mt per day with the anticipatory expansion capability. The refinery should  be completed and delivered to us within 18-24 months and we expect to generate revenue  of RM260-270m in the first year of operation.” (Star Biz)  

Deputy Transport Minister Datuk Abdul Rahim Bakri is confident that the ongoing Transport  Ministers meeting of the  Brunei-Indonesia-Malaysia-Filipina-East Asean Growth Area  (BIMP-EAGA), at Cagayan De Oro in the Philippines, will result in some form of regional  cooperation in the area of transportation and communications. He said cooperation in the  sector would be necessary and timely as it would be in line with present efforts to create an  Asean community by 2015.

  • Abdul Rahim said the growth triangle could become a driving force to establish  cooperation and facilitating the venture into the various economic areas of BIMP EAGA  which has a market potential of 60m people where transportation and communications  were the major drivers. Abdul Rahim also announced  that Kota Kinabalu, Sabah has  been elected as the host for next year's BIMP EAGA  Transport Ministers meeting.  (Bernama) 

20110728 1054 Renewable Energy Related News.

EDP RENEWABLES H1 NET PROFIT MORE THAN DOUBLES
LISBON, July 27 (Reuters) - Portugal's wind power generator EDP Renewables  on Wednesday posted a 109 percent rise in first-half net profit, to beat market expectations, after an increase in output and smaller amortisations.
EDPR, the world's fourth-largest wind power company and a unit of Energias de Portugal , said its net profit in January-June totaled 90 million euros ($130.3 million).

ACCIONA H1 BENEFITS FROM STRONG ENERGY BUSINESS
MADRID, July 27 (Reuters) - Spanish energy and construction conglomerate Acciona  reported firm growth in first half core profit on Wednesday as strength at the group's renewable energy business offset weak real estate and services.  
Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 19.4 percent to 631 million euros ($913 million), beating a forecast for 610 million euros from a Reuters poll of eight analysts.

Q+A-HOW IS JAPAN'S RECONSTRUCTION PLAN SHAPING UP?
TOKYO, July 27 (Reuters) - Japan plans additional spending of 13 trillion yen ($166 billion) for rebuilding from the world's costliest natural disaster, hoping to spread the spending over five to 10 years to build roads and seawalls and to boost the use of renewable energy.
But analysts worry there may be a substantial delay before reconstruction shifts into high gear as a political deadlock  heightens four months after the devastating March 11 earthquake and tsunami, which also triggered a nuclear crisis.

CALIFORNIA'S BROWN SEEKS COOKIE CUTTER SOLAR PERMITS
LOS ANGELES, July 25 (Reuters) - California Governor Jerry Brown on Monday said he wants to push the state's localities to adopt a uniform solar panel ordinance, providing a standard model that would ease the process by which homeowners install solar panels on their rooftops.
"Any time you do something with your house over a certain minor dollar amount, you're supposed to get a permit," Brown said. "So that could take a cookie cutter ordinance."

SUNPOWER TO POST 2ND-QUARTER LOSS, SHARES DIVE
LOS ANGELES, July 25 (Reuters) - SunPower Corp  warned on Monday that it lost money in the second quarter because of subsidy cuts in Italy and one-time charges for an inventory writedown, contract cancellations and its strategy of shifting panel sales to areas of greater demand.
The company's shares fell 7.1 percent following the announcement.

DUPONT BUYS SOLAR TECH COMPANY INNOVALIGHT
LOS ANGELES, July 25 (Reuters) - Chemical company DuPont said on Monday it bought solar technology start-up Innovalight Inc in a move to help double sales to the solar industry to $2 billion by 2014.
Financial terms of the deal were not disclosed.

BP SOLAR TO STOP PANEL SALES, FOCUS ON PROJECTS
LOS ANGELES, July 21 (Reuters) - BP Solar is closing its U.S. manufacturing facility and will refocus is business on developing solar power projects rather than making panels for them, a company spokesman said on Thursday.
The Frederick, Maryland, facility had not been producing solar modules since last year, yet 80 employees remained at the office. Some of those employees will be offered positions in Houston, where BP Solar's headquarters moved less than a year ago from San Francisco.

FOTOWATIO SELLS 30 MW ITALY SOLAR FARMS TO MUNICH RE
MILAN, July 20 (Reuters) - Spain's Fotowatio Renewable Ventures has sold four solar power generation plants in Italy with a total capacity of 30 megawatts to insurance group Munich Re , the Spanish company said on Wednesday.
Munich Re, through its asset management arm MEAG, has agreed to buy 100 percent of the assets which would still be managed by Fotowatio's Italian unit, the company said in a statement. It did not disclose financial details of the deal.

20110728 1052 Biofuels Related News.

BRAZIL CANE CRUSH GAINS ON LAST SEASON, OUTLOOK DIM
BRASILIA, July 26 (Reuters) - Crushing of cane in Brazil and production of sugar and ethanol made from it are catching up with the 2010 season, data from cane industry association Unica showed on Tuesday, but the crop may soon run out of puff.
The crush totaled 217.4 million tonnes from the start of the season through July 16. That was 15 percent less than by the same time last season but the gap had narrowed from a lag of 18 percent at the start of July.

U.S. CELLULOSIC ETHANOL INDUSTRY STRUGGLES TO TAKE OFF
WASHINGTON, July 25 (Reuters) - The great promise of a car fuel made from cheap, clean-burning prairie grass or wood chips -- and not from expensive corn that feeds the world -- is more mirage than reality.
Despite years of research, testing and some hype, the next-generation ethanol industry is far from the commercial success envisioned by President George W. Bush in 2006, when he pledged so-called cellulosic biofuels would be "practical and competitive" by 2012.

US ETHANOL PRODUCTION CLIMBS MODESTLY, STOCKS GAIN
CHICAGO, July 20 (Reuters) - U.S. ethanol production posted a modest gain in the latest reporting week, rebounding from more than a two-month low during the previous period, the Energy Information Administration said in its weekly petroleum report on Wednesday.
Ethanol output rose to 873,000 barrels per day (bpd) for the week ended July 15, which was up 1,000 bpd from the previous week and 4.4 percent higher than the 836,000 bpd produced in the same week last year, EIA said.

IDLE GERMAN BIODIESEL PLANT RESTARTS UNDER NEW OWNERS
HAMBURG, July 22 (Reuters) - The German biodiesel plant previously operated by insolvent green fuels producer EOP Biodiesel AG will restart production on Monday, its new owners said on Friday.
The company German Biofuels GmbH in March bought EOP's 132,000 tonnes annual capacity biodiesel plant in Pritzwalk in eastern Germany which has been idle since October 2010.

COPERSUCAR DELAYS BRAZIL IPO AS CONDITIONS WORSEN
SAO PAULO, July 19 (Reuters) - Copersucar, Brazil's largest sugar and ethanol trader, on Tuesday delayed a plan to sell shares for the first time, a source told Reuters, signaling that debt woes abroad are spoiling appetite for equity offerings in Latin America's biggest economy.
The source, who has knowledge of the situation but declined to be identified because the transaction is still in the works, did not specify when the initial public offering plans would be resumed. Under Brazilian law, companies can resume IPO plans within 60 days if basic terms of the deals are not modified.

CATHAY INDUSTRIAL BIOTECH FILES FOR IPO OF UP TO $200 MLN
July 19 (Reuters) - China's Cathay Industrial Biotech Ltd filed with U.S. regulators on Tuesday to raise up to $200 million in an initial public offering of American Depositary Shares.
In a filing with the U.S. Securities and Exchange Commission, the company said Morgan Stanley, Deutsche Bank Securities and Jefferies would be underwriting the offering.    

EU GETS TOUGH ON DIRTY BIOFUEL, PLEDGES MORE ACTION
BRUSSELS, July 19 (Reuters) - Europe's energy chief announced seven green certification schemes for biofuels on Tuesday and promised in future to tackle the unwanted side-effects of turning food into fuel.    
Guenther Oettinger said biofuels' indirect impacts were dangerous for the planet's carbon balance and food supply.    

20110728 1051 Global Market Related News.

DJIA chart reading :  side way range bound.

Hang Seng chart reading : side way range bound.
Asian Stocks Fall Amid U.S. Debt Impasse, U.S. Durable Goods Order Decline (Source: Bloomberg)
Asian stocks fell for a third day this week as U.S. lawmakers failed to break a deadlock over raising the federal debt limit, and durable goods orders in the world’s biggest economy unexpectedly declined. Toyota Motor Corp. (7203), the No. 1 carmaker, slid 1.5 percent in Tokyo. BHP Billiton Ltd. (BHP), the world’s largest mining company by market value, retreated 1.8 percent in Sydney after oil and metal prices declined. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest publicly traded lender, fell 1.7 percent. Hitachi Construction Machinery Co. jumped 3.9 percent in Tokyo after boosting its net income forecast. “In addition to the recent debt impasse in the U.S., investors need to be more conscious about the deterioration of the actual economy,” said Mitsushige Akino, who oversees about $600 million in Tokyo at Ichiyoshi Investment Management Co. “Risk avoidance is increasing again.”

Growth Slowed in 8 of 12 U.S. Regions: Fed (Source: Bloomberg)
The Federal Reserve said the economy grew at a slower pace in more parts of the country since the beginning of June as shoppers restrained spending and factory production eased. “Economic activity continued to grow,” the Fed said in its Beige Book survey released today in Washington. “However, the pace has moderated in many districts.” Growth slowed in eight of the Fed’s 12 regions, compared with four in the last survey, the central bank said. The report underscores Fed Chairman Ben S. Bernanke’s message to Congress earlier this month that maintaining record monetary stimulus is necessary to bolster the economy. Bernanke left the door open to additional action, including buying more government bonds, should the recovery appear in danger of stalling.

Bernanke May Need to Stay ‘Above Politics’ in Standoff Over Debt Ceiling (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke has steered clear of the political brawl over raising the U.S. debt limit. Lawmakers say he should keep his distance. The central banker would risk angering politicians and roiling markets should he get involved in talks, recommend a specific tax and spending plan or repeat the force of his 2008 pleas for a financial rescue, members of Congress from both parties said. “If you’re the Fed chairman, you’ve got to be above politics,” said Jon Kyl, the No. 2 Senate Republican. Staying above the debt-limit fray may give Bernanke and his colleagues a freer hand to inject monetary stimulus into a sputtering U.S. economy, or remove it later. The Fed’s $600 billion in bond purchases from November to June sparked a political backlash from Republicans who took control of the House of Representatives in last year’s elections.

U.S. May Lose AAA Rating Even With a Debt Deal, BlackRock, Templeton Say (Source: Bloomberg)
BlackRock Inc., Franklin Templeton Investments, Loomis Sayles & Co., Pacific Investment Management Co. and Western Asset Management said the U.S. faces losing its top-level debt rating as officials struggle to raise the $14.3 trillion borrowing limit and reduce spending. Investors are warning a cut is likely as President Barack Obama and House Speaker John Boehner argue over how to increase the debt ceiling, while also trying to curb borrowing. The government needs to boost the cap by Aug. 2 so it can keep paying its bills, according to the Treasury Department. The comments suggest that the world’s biggest bond managers are resigned to the fact that the U.S. rating will be cut. Standard & Poor’s, which has rated the U.S. AAA since 1941, said July 14 that the chance of a downgrade is 50 percent in the next three months and it may cut the nation as soon as August if there isn’t a “credible” plan to reduce the nation’s deficit.

Orders for U.S. Durable Goods Unexpectedly Fall as Inventory Growth Slows (Source: Bloomberg)
Orders for U.S. durable goods unexpectedly dropped in June, raising the risk that a slowdown in business investment will weigh on the world’s largest economy in the second half of the year. Bookings for goods meant to last at least three years fell 2.1 percent after a 1.9 percent gain the prior month that was smaller than last reported, the Commerce Department said today in Washington. Demand for business equipment, including machinery and computers, also dropped. Manufacturers face a slowdown in consumer spending just as they are poised to rebound from the parts shortages caused by Japan’s earthquake, indicating production may keep cooling. Companies are also cutting back on hiring, which may further temper household demand.

U.S. Stocks Drop on Debt-Ceiling Concern, Decline in Durable Goods Orders (Source: Bloomberg)
U.S. stocks fell, dragging the Standard & Poor’s 500 Index down the most in almost two months, as lawmakers indicated they were no closer to reaching a compromise on the federal debt limit. Technology and industrial stocks led declines among 10 S&P 500 groups. Caterpillar Inc. (CAT) and General Electric Co. (GE) decreased more than 2.4 percent after a government report showed orders for durable goods unexpectedly decreased. Corning Inc. (GLW) dropped 7.2 percent after reducing its forecast for glass demand amid lower television-sales projections. Amazon.com Inc. (AMZN) rallied 3.9 percent after its Kindle e-reader and digital-media services helped second-quarter results beat analysts’ estimates. The S&P 500 slipped 2 percent, its biggest decline since June 1, to 1,304.89 at 4 p.m. in New York. The Dow Jones Industrial Average retreated 198.75 points, or 1.6 percent, to 12,302.55.
Treasury yields, which dropped yesterday on speculation lawmakers would reach an accord on the nation’s debt ceiling, rose today as the political stalemate continued.

US home price rise fails to lift housing gloom
WASHINGTON, July 26 (Reuters) - Prices for new U.S. single family homes rose to a five-month high in June even as sales slipped, but recovery for the broader housing market continues to be frustrated by an oversupply of properties.
The Commerce Department said on Tuesday the median sales price for a new home increased 5.8 percent last month to $235,200. Compared to June of last year, prices rose 7.2 percent.

Partisan Washington sends investors to safety
LONDON, July 27 (Reuters) - Gold soared to a record high for the sixth time in two weeks  and the dollar collapsed to another record low against the Swiss franc as investors sought safety from a possible U.S. debt default.
"Our base scenario is still that some sort of eleventh hour deal will be reached. However, there is always a risk that they do not come to a compromise. The impact would be formidable and the U.S. economy may not be strong enough to take this," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels.

No Fear in China Options as Prices Drop (Source: Bloomberg)
Traders betting on gains in China’s biggest companies are pushing options prices to the most bullish level in almost two years on speculation higher interest rates won’t curb the world’s second-largest economy. The premium investors pay for puts to sell the iShares FTSE China 25 Index versus calls to buy has tumbled to 15 percent from 31 percent on June 22, according to data on three-month options compiled by Bloomberg, and fell as low as 13 percent this week. That compares with the average of 20 percent since the start of 2005 for the U.S.-traded fund tracking Chinese companies listed in Hong Kong. “It’s almost like there’s no fear in China,” Jonathan Masse, a money manager at Walnut Creek, California-based Baochuan Capital Management LLC, which invests in Chinese stocks and options, said in an interview. “That’s where the world’s growth is coming from. People are more confident, so there’s less need for them to protect themselves from downside.”

Japanese Stocks Drop for Second Day on U.S. Goods Orders, Debt Stalemate (Source: Bloomberg)
Japanese stocks dropped for a second day after U.S. durable goods orders unexpectedly declined and a stalemate between Democrats and Republicans dragged on ahead of a deadline next week for raising the federal debt limit. Mitsubishi UFJ Financial Group Inc., Japan’s largest publicly traded bank, sank 2 percent. Nikon Corp., a camera maker that gets about a quarter of its revenue from Europe, sank 2 percent after Greece had its debt rating cut by Standard & Poor’s and the euro weakened against the yen. Inpex Corp., the nation’s No. 1 oil explorer by market value, fell 1.7 percent after crude prices declined. The Nikkei 225 (NKY) Stock Average fell 1.1 percent to 9,936.10 as of 9:02 a.m. in Tokyo. The broader Topix lost 1.1 percent to 849.85, with more than nine shares dropping for each that gained.

South Korean Current-Account Surplus Widens as Exports Withstand Won Gains (Source: Bloomberg)
South Korea’s current-account surplus rose to an eight-month high in June as global demand for cars and steel boosted exports. The surplus was $2.99 billion, compared with a revised $2.18 billion in May, the Bank of Korea said in a statement in Seoul today. The current account is the broadest measure of trade, tracking goods, services and investment income. The Bank of Korea raised its forecast for this year’s current-account surplus to $15.5 billion from $11 billion on July 15, citing strong export growth and stabilizing raw material costs. Goldman Sachs Group Inc. said July 19 that the won may keep appreciating as the government seeks to damp inflation and exports benefit from a recovery in Japan and a “moderate” acceleration in U.S. growth.

S.Korea Q2 growth slows; exports, construction prove to be drags
SEOUL, July 27 (Reuters) - South Korea's economic growth eased slightly more than expected in the second quarter on weaker exports although a sustained expansion in domestic demand reinforced chances the central bank would have to raise rates again.
Gross domestic product grew a seasonally adjusted 0.8 percent in the April-June period from the first quarter, slightly less than the 0.9 percent seen in a Reuters poll, the central bank's advance estimates showed on Wednesday, slower than a revised 1.3 percent rise in the January-March period.

Greek Central Bank Head Urges Government to Exceed Targets for Budget Cuts (Source: Bloomberg)
Bank of Greece Governor George Provopoulos called on the government to exceed its budget- cutting targets to restore investor confidence in the debt- ridden nation. The European Union’s second rescue package for Greece provides “breathing space” that should be used “not only to put the program back on track, but to go beyond the targets of the program,” Provopoulos, who sits in the European Central Bank’s Governing Council, said in an interview in Athens yesterday. “If we did that -- and we certainly can do that -- we would help turn around the psychology of the market.” Greek lawmakers on June 29 backed a 78 billion-euro ($113 billion) austerity plan that was a condition for receiving another EU bailout. The program aims to reduce the budget deficit to 1.1 percent of gross domestic product in 2015 from 10.5 percent last year. Spanish and Italian bond yields are nevertheless rising on investor concern that the crisis will spread as Greece teeters on the brink of a debt default.

Spain’s Biggest-Deficit Region Rules Out Tax Increases to Tame Shortfall (Source: Bloomberg)
Castilla-La Mancha, which has Spain’s biggest regional deficit, aims to cut the shortfall fivefold this year without raising taxes as it stays shut out of debt markets, President Maria Dolores de Cospedal said. Cospedal said in an interview today she will seek to shrink a deficit that reached 6.5 percent of regional gross domestic product last year to meet a goal of 1.3 percent in 2011. Her government there currently has enough cash to pay wages through September, she said. “Of course we are going to try to meet the target, it’s our obligation,” Cospedal, who is also deputy leader of the opposition People’s Party, said at the party’s headquarters in Madrid. “We rule out raising taxes, it’s against what we want and believe. Spain has never emerged from an economic crisis by raising taxes.”

Greece Will Default on Debt After EU Plan: S&P (Source: Bloomberg)
Greece will partially default on its debt once European officials push through a plan that will see bondholders foot part of the bill of a second bailout agreed to last week in Brussels, Standard & Poor’s said. The rating company also cut its ranking for Greece to CC, two steps above default, from CCC, according to a statement published in London today. The outlook on the debt is negative. “The proposed restructuring of Greek government debt would amount to a selective default under our rating methodology,” S&P said. “We view the proposed restructuring as a ‘distressed exchange’ because, based on public statements by European policy makers, it is likely to result in losses for commercial creditors.”

Brazil Stocks Plunge Into Bear Market on Inflation Surge, Investment Taxes (Source: Bloomberg)
Brazilian stocks plunged into a bear market after new measures to stem currency gains and concern that quickening inflation will squelch earnings growth pushed the benchmark index down 20 percent from a November high. The Bovespa fell 1.8 percent in Sao Paulo to 58,288.46 at the 4:15 p.m. New York time close, extending the worst performance this year among major equity markets. A bear market is typically defined as a drop of at least 20 percent from the preceding bull-market peak. The real tumbled 1.2 percent to 1.5582 per dollar today after the government said it will levy a tax on some investments in currency derivatives. “These measures reinforce the negative sentiment that foreign investors already had on Brazil,” said Eduardo Favrin, who helps manage $3.2 billion as head of equities at HSBC Global Asset Management’s Brazil unit in Sao Paulo.

Most Emerging-Market Stocks Fall on U.S. Concern; Lira Rallies (Source: Bloomberg)
Most emerging-market stocks fell as concern that the U.S. may lose its top credit rating overshadowed signs of improving corporate earnings. The MSCI Emerging Markets Index slipped 0.7 percent to 1,148.99 at 4:40 p.m. in New York, with 465 stocks retreating and 308 gaining. Brazil’s Bovespa index plunged into a bear Market, falling 1.8 percent and extending the worst performance this year among major equity markets. Argentina’s Merval index sank 2.9 percent, the most in eight months. Russia’s benchmark slid for a fourth straight day while India’s Sensitive Index declined for a second day. The lira strengthened after Prime Minister Recep Tayyip Erdogan said the Turkish currency, this month’s worst performer in emerging markets, will find a “middle ground.”
Profit growth helped lift the MSCI emerging-market index to its highest close since July 8 yesterday even as U.S. lawmakers struggled to reach an agreement to raise the federal debt limit before an Aug. 2 deadline. Net income at the 100 companies in the MSCI index that reported results this month rose 20 percent on average, topping analysts’ estimates, data compiled by Bloomberg show.

FOREX-Debt deadlock dents dollar, lifts Swiss franc, yen
LONDON, July 27 (Reuters) - The dollar fell to a record low against the Swiss franc and a four-month low against the yen on Wednesday as talks aimed at averting a U.S. debt ratings downgrade or default remained deadlocked.
With Democrat and Republican lawmakers still unable to agree on a plan to raise the government's $14.3 trillion debt ceiling before an Aug. 2 deadline, the dollar stayed close to a three-month low versus a currency basket, More dollar falls were seen likely if no deal is reached.

20110728 1050 Global Commodities Related News.

COLUMN-Commodity prices high but producers' shares lag: Clyde Russell
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
By Clyde Russell
SINGAPORE, July 27 (Reuters) - There appears to be a disconnect between the current high prices of commodities and the lagging share valuations of the companies that produce them.
Copper is within 4 percent of its record high, gold is at a record, iron ore is 8 percent below its all-time peak, oil is heading for the highest yearly average price ever and both thermal and coking coal are holding at elevated levels.

Agricultural mkts more vulnerable to supply shocks-USDA
MELBOURNE, July 27 (Reuters) - Agricultural markets are more vulnerable to supply shocks because of lower world stockpiles, while China's demand for feed grains is rapidly expanding with the growth of the middle class, a top USDA official said on Wednesday.
Global food supplies are extremely tight and any major weather threat to crop could drive prices, Michael Dwyer, director of the U.S. Department of Agriculture's global policy analysis division, told Reuters in an interview.

Corn (Source: CME)
US corn futures close higher on spillover support from a rally in the wheat market. Wheat influences corn because both grains are used for livestock. Corn's leadership role was a turnaround from recent weeks, when wheat had been looking to corn for direction amid concerns about poor weather reducing US corn output. Weather has since improved for the crop, and traders are trying to figure out where the corn market is heading. CBOT December corn rises 4 3/4c to $6.91 1/2 a bushel.

Wheat (Source: CME)
US wheat futures finish higher as traders unwind short wheat/long corn spreads. They bought back previously sold wheat positions as concerns increase about output in the northern Plains. An annual spring-wheat tour that began Tuesday in North Dakota estimated yields will drop from last year. Meanwhile, concerns about poor weather threatening corn have eased. "Some people are just maybe caught off guard with day one of the crop tour," says Terry Reilly of Citigroup. CBOT September wheat rises 10 3/4c to $7.04 3/4 a bushel, KCBT September gains 7 3/4c to $7.88 1/4 and MGEX September jumps 12c to $8.51.

Rice (Source: CME)
US rice futures fall sharply, briefly dropping the one-day limit of 50c/hundredweight, as jitters about the government's inability to hammer out a debt-ceiling agreement causes market participants to sell grains. Jack Scoville at Price Future Group adds pressure may also stem from early harvesting in Texas, where rice yields "haven't been horrid but neither have they been spectacular." Some expected a sharp drop in yields due to drought. CBOT September rice was recently down 38c at $16.83. Still, rice has climbed nearly 30% this month from a 3 1/2-month low.

German 2011-12 Grain Output Seen At 41M Tons (Source: CME)
Germany is likely to produce 41 million metric tons of grain in 2011-12, the German farmers' association DBV said, compared with 44 million tons in 2010-11. The association said heavy rainfall across the country over the past few weeks as the grain was ripening and the wheat harvest was due to begin will reduce the crops. "Because the wheat is maturing now, the rain fell at the wrong time. If the weather conditions remain rainy, the quality of the wheat will deteriorate. So it's likely that the wheat will not be able to be used for (human) food," Astrid Rewerts, head of Plant Production at the DBV said. "German farmers are hoping for better weather conditions for the harvesting of the wheat crop," Rewerts said. Rewerts said German farmers are now reluctant to sell wheat on a forward basis as the quality of the wheat is unknown due to rain.
There is no immediate relief for the wheat crop in sight as German weather forecasters predict heavy rainfall for the next five days. In 2009-10, German total grains production hit almost 50 million tons, DBV said.

UN Buys 90K Tons Of Wheat For Ethiopia (Source: CME)
A United Nations agency has bought 90,000 metric tons of wheat for the drought relief effort in Ethiopia, European traders said. More than 11 million people are in need of food assistance as the worst drought in decades has hit countries in the Horn of Africa, the U.N. says. In Ethiopia, the crisis is particularly severe as large numbers of refugees from badly hit Somalia are crossing the border daily. The wheat is likely to be sourced from the Black Sea, which was the U.N.'s relief agency's largest supplier before Russia banned exports last year, the traders added.

Japan Cancels Feed Wheat, Barley Tender (Source: CME)
Japan's agriculture ministry canceled a sell-buy-sell tender to import 50,000 metric tons of feed wheat and 200,000 tons of feed barley due to a lack of buyers and sellers, a government official said. The ministry had sought the grain for bulk shipment by Oct. 31, the Ministry of Agriculture, Forestry and Fisheries official said. Japan canceled 10 of the last 15 weekly SBS tenders for feed grain due to a lack of buyers and sellers. It purchased a total of 61,730 tons of wheat and 210,450 tons of barley in the other five. Under the SBS system, end-users can negotiate as a group on the price, quantity and origin of grains before submitting bids to trading firms via the agriculture ministry. Japan mostly buys wheat and barley from Canada, Australia, the U.S. and France.

Corn Rises on Concern That Heat Damaged U.S. Crop; Soybean Futures Decline (Source: Bloomberg)
Corn rose to a one-week high on speculation that hot, dry weather has caused irreversible damage to the crop in the U.S., the world’s biggest producer and exporter. Soybeans fell for the second time in three days. Temperatures will be about 8 degrees Fahrenheit above normal the next week in the Midwest and South, increasing stress on crops, according to T-Storm Weather. For most of the Midwest, average overnight lows in July will be the highest since the 1930s, the Commodity Weather Group LLC said in a report. “We have heat coming back into the Midwest, and that will hurt crops that lack adequate moisture,” Jeff Beal, a market analyst for Rockford, Illinois-based Gulke Group Inc., said in a telephone interview. “While the hottest and driest conditions are staying south of the biggest growing areas, the high nighttime temperatures probably already hurt yields.”

U.S. corn falters on profit taking
SYDNEY, July 27  (Reuters) - U.S. corn futures dipped  as investors locked in profits after sharp rises over the previous two sessions on concerns that the U.S. harvest was likely to be smaller than expected.
"There has been a general upward run in commodities because of the weakness in the U.S. dollar," said Andrew Kaleel, chief executive of commodities fund manager, H3 Global Advisors.

Thai 2011 rice exports may top 10 mln tonnes-exporters
BANGKOK, July 27 (Reuters) - Thailand, the world's biggest rice exporter, could ship a record volume of more than 10 million tonnes in 2011, the Thai Rice Exporters Association said on Wednesday, but shipments may slump next year because of the new government's intervention plans.  
"We have done quite well in the first half of the year and, if there are no problems in the second half, we're quite confident we could sell more than 10 million tonnes this year," said Korbsook Iamsuri, president of the association.

Ukraine '11 grain crop at 26.3 mln T so far
KIEV, July 27 (Reuters) - Ukraine's farms harvested 26.3 million tonnes of grain as of July 26 and the grain yield averaged 2.94 tonne per hectare, the Agriculture Ministry said on Wednesday.
Farmers have threshed 8.93 million hectares or 78 percent of the sown area of early grains.

Vietnam rice export prices up 3 pct on Indonesia deal
HANOI, July 27 (Reuters) - Vietnamese rice export prices have risen as much as 3 percent in the past week after news that Vietnam had struck a deal to sell 500,000 tonnes to Indonesia, traders said on Wednesday.
The rise in prices since the news broke last Friday has made it difficult for exporters to buy grain for loading, which could lead to delays in deliveries in coming weeks, traders said.  

Wheat yields in southern N.Dakota seen lower--Tour
MANDAN, North Dakota, July 26 (Reuters) - Spring wheat yields were projected to decline this year in the southern half of North Dakota as a late start to the planting season and excessive moisture stressed the crop, allowing diseases to thrive, an annual tour found.
Huge pools of standing water covered large swaths of farmland across the state, submerging fields of corn, hay and hard red spring wheat.

Asian wheat buyers to step up buying after June slowdown-trade
MELBOURNE, July 27 (Reuters) - Asian wheat buyers are likely to boost purchases to cover supplies for September and October after a slowdown in buying since June on volatile prices, traders said on Wednesday.
Indonesia is expected to buy 150,000 tonnes for September, and 200,000 tonnes for October delivery, while Thailand is likely to take around 100,000 tonnes for arrival in September and October, traders told Reuters at a grains industry conference in Melbourne.

African land grabs threaten food security -study
CHICAGO, July 26 (Reuters) - Rich countries grabbing farmland in Africa to feed their growing populations can leave rural populations there without land or jobs and make the continent's hunger problem more severe, an environmental think tank said on Tuesday.
The trend is accelerating as wealthier countries in the Middle East and Asia, particularly China, seek new land to plant crops, lacking enough fertile ground to meet their own food needs, Washington DC-based Worldwatch Institute said.

Argentina allows 450,000 tonnes more in wheat sales
BUENOS AIRES, July 26 (Reuters) - Argentina's government approved the export of another 450,000 tonnes of 2010/11 wheat on Tuesday, saying farmers had declared additional stocks.
Argentina is a major wheat exporter, but the government restricts international shipments to ensure domestic supply as it grapples with high inflation. Corn shipments are also curbed with a quota system of export permits.

Unica Data Doesn't Dispel Brazil Sugar Fears (Source: CME)
Top grower Brazil's sugar harvest looks set to fall for the first time in a decade despite data showing an improvement in July output, analysts said. New York raw sugar futures stumbled from their meteoric rise Tuesday after industry association Unica said production in the Center South region--Brazil's largest producing area--rose 2.5% on year in the first half of July. "The latest Unica numbers do nothing do dispel the worry the market has about Brazil's outright cane and subsequent sugar production," Paul Deane, an analyst at ANZ Bank told Dow Jones Newswires. "The crop is still behind last year by 15%," said a broker. Analysts have scrambled to downgrade estimates for Brazil's harvest as ageing cane and bad weather have hurt yields.
Last week consultancy Canaplan cut its estimate to 30 million metric tons, from 33.5 million tons in 2010-11, and below Unica's revised forecast of 32.4 million tons. Deane said Unica's estimate could be cut further because of poor sugar content, known as ATR, in the cane this season. So far, Unica has pegged content at 136 kilograms a ton for the full season, in line with July's figures, but Deane argues this could still be "too high" and presents "downside risks" to their data. Switzerland-based Kingsman this week lowered its estimate for Brazil's CS crop to 31.87 million tons of sugar, from an earlier forecast of 33.78 million tons, and cut its ATR figure to 137kg/ton. Although this is "amongst the lowest in the past 10 years" the influential analyst cautioned: "We may have to lower it further as a result of the recent frosts and the widely spread flowering."

ICCO: Larger Cocoa Surplus To Ease Deficit (Source: CME)
Rising hopes for West African cocoa production this year could help balance out an expected deficit in 2011-12, the head of the International Cocoa Organization said. Executive director Jean-Marc Anga told Dow Jones Newswires he now expects output from Ivory Coast, the world's largest producer, could reach 1.4 million metric tons in the current 2010-11 crop year. Neighboring Ghana is also "on course" to reach its target of 1 million tons by the end of the season, despite flooding in cocoa-producing regions in the east of the country, he said. Anga said he expects the ICCO will increase its current estimate of a 189,000 ton surplus for 2010-11, leaving markets in "more of a balance" than many forecasters currently expect next season. "Most analysts are still expecting a deficit next year but we can see the surplus increasing between now and then," Anga said.
However, increasing consumption is likely to keep prices supported at $3,000/ton for the next six months, he said. Demand is expected to rise to a record high of more than 3.9 million tons in 2011-12, up from 3.8 million tons this year, driven by Asia and the developing world as well as "robust" consumption in traditional markets, he said. Cocoa grinding is also expected to rise in Ivory Coast following a bloody conflict there earlier this year. The country lost its place as the world's second-largest processor as companies fled during the political turmoil. But going forward, he remains concerned that the proliferation of uncoordinated projects to expand cocoa production in several parts of the world could have a severe impact on prices. "We do not believe that production should go all out in meeting demand--and go beyond--as the impact on prices will be severe," he said.
With the new government of Ivory Coast due to launch initiatives to boost production in the near future, including tackling structural issues such as aging trees and little use of inputs, Anga said production there could rocket. "If they go all out to increase investment in the next five to 10 years they could reach 1.8 million to 2 million tons," he said. Neighboring Ghana, considered a major cocoa success story, is expected to produce 1.2 million tons by 2012-13. He added that the ICCO won't lift its estimate for Indonesia, another key producer, where production has been severely damaged by rain and disease. "The pest and disease situation there is quite worrying," he said.

Rubber Prices May Rise as Demand Shrinks Inventories in China, RCMA Says (Source: Bloomberg)
The global natural rubber stocks-to- use ratio has plunged to the lowest level ever as expanding demand shrinks inventories in China, potentially boosting prices, according to RCMA Commodities Asia Pte Ltd. Global inventories are just enough to meet about a month’s demand compared with supplies for about 6.3 weeks a year earlier, Chief Executive Officer Chris Pardey said in an interview on July 26 in Singapore. Stockpiles in China’s port of Qingdao, which aren’t publicly available, have dropped to about 70,000 metric tons from 120,000 tons in April and May, Pardey said. The low stock-to-use ratio may help rubber futures in Tokyo extend an almost 50 percent gain in the past year and increase costs for Bridgestone Corp., Michelin & Cie. and Goodyear Tire & Rubber Co., the top three tire makers. China, the largest automobile market, may consume 3.5 million tons of rubber this year, 6.1 percent more than a year earlier, the Association of Natural Rubber Producing Countries said last month.

Sugar firm, eyes on Brazil crop, coffee falls
LONDON, July 27 (Reuters) - Sugar futures edged higher on Wednesday, supported by a fall in Brazilian production, while coffee futures slipped, as fears of a U.S. debt default weighed on markets.
Dealers said high prices were curbing physical demand as buyers hoped for the market to correct lower.

Brazil cane crush gains on last season, outlook dim
BRASILIA, July 26 (Reuters) - Crushing of cane in Brazil and production of sugar and ethanol made from it are catching up with the 2010 season, data from cane industry association Unica showed on Tuesday, but the crop may soon run out of puff.
The crush totaled 217.4 million tonnes from the start of the season through July 16. That was 15 percent less than by the same time last season but the gap had narrowed from a lag of 18 percent at the start of July.

Brazil CS sugar output down 15 pct from yr ago
BRASILIA, July 26 (Reuters) - Sugar production in Brazil's center-south reached 11.9 million tonnes from the start of the season to July 16, down 15 percent from a year ago, cane industry association Unica said on Tuesday.
Sugar production has been steadily catching up with the 2010 season which started exceptionally early. At the start of July, cumulative sugar production was 19 percent lower than a year earlier.

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.

Mongolia state-owned miner signs coal deal with China's Chalco
ULAN BATOR, July 27 (Reuters) - Mongolia's state-owned miner Erdenes Tavan Tolgoi (TT) has agreed to sell $250 million worth of coal from the east Tsankhi deposit to Aluminium Corp of China Ltd (Chalco), a move insiders said was aimed at raising cash to help fund its impending listing fees.
Under the agreement, Chalco  would resell 30 percent of the coal to Japanese trading houses Itochu Corp  and Mitsui  as well as state-owned Korea Resources Corp (KORES), Erdenes TT LLC said in a statement seen on Wednesday.

Australia's Aquila says normal shipments to resume at Isaac Plains
SYDNEY, July 27 (Reuters) - Australia's Aquila Resources  expects normal shipments from its Isaac Plains Coal Mine to resume after it reached an agreement over a dispute with partner Vale .
"Aquila is pleased to today announce that Vale and IP Coal have reached an agreement which effectively puts aside the difference of opinion between them regarding the ability to make separate shipments of coal from Isaac Plains," the company said on Wednesday.

Euro Coal-Prices creep higher on oil, S.Africa strike
LONDON, July 26 (Reuters) - Prompt physical coal prices crept higher by 50 U.S. cents a tonne on Tuesday for the third day running, boosted by a rise in oil and the spreading effects of South African miners' strike.
"Prices have very slowly been moving higher over the past few days but there are various reasons for that - oil, the strike, the dollar looking weaker - no one factor you could pin it on," one European trader said.

Asia Coal-Australia thermal coal prices steady in slow market
PERTH, July 26 (Reuters) - Australia's thermal coal prices, a benchmark for Asia, were steady in the past week as demand from Japan remained flat and Chinese demand waned.
Thermal coal on the globalCOAL Newcastle index for the week to date was $120.63 per tonne on Thursday, essentially unchanged from $120.75 per tonne a week earlier.        

Anglo stops all coal ops in S.Africa due to strike
JOHANNESBURG, July 26 (Reuters) - Anglo American  said on Tuesday it has halted operations at its South African coal mines due to a wage strike which started with the late shift on Sunday.
"There is still no production at all the Anglo American-owned mines," said Moeketsi Mofokeng, spokesman at the thermal coal unit.

SAfrica coal strike seen hitting exports in 2-4 wks
LONDON/JOHANNESBURG, Jul 25 (Reuters) - A strike by South African coal workers at major mining houses on Monday will start to hit exports in two to four weeks, after stockpiles are used up at the mines and Richards Bay Coal Terminal (RBCT), mining industry sources said.
Coal prices twitched slightly higher by around 50 U.S. cents to $115.00 a tonne on Friday in anticipation of the strike and by another 50 cents on Monday. Until exports are cut, prices are unlikely to show much reaction, coal traders and utilities said.

Itochu sees appetite for Drummond coal in Asia
TOKYO, July 25 (Reuters) - Itochu Corp , which has teamed up with Drummond Coal to sell the U.S. miner's Colombian product to Asia, said there is good appetite for its coal among the region's power companies keen to diversify supplies.
"There is strong interest for Colombian coal from customers in China, South Korea, India and Japan," Koichi Kawaguchi, deputy chief operating officer at Itochu, Japan's fourth-biggest trading house, told Reuters in an interview on Monday.

Crude Oil Falls for a Second Day on U.S. Economy, Rising Crude Stockpiles (Source: Bloomberg)
Oil declined for a second day in New York as investors bet that rising crude supplies and signs of a slowing economy in the U.S. indicate fuel demand may falter in the world’s biggest consumer of the commodity. Futures slid as much as 0.9 percent today after falling to the lowest in more than a week yesterday. U.S. crude stockpiles climbed 2.3 million barrels to 354 million last week, a Department of Energy report showed. A 2 million-barrel drop was forecast in a Bloomberg News survey. Gasoline, diesel and heating oil inventories also rose. Orders for U.S. durable goods unexpectedly dropped in June. “You’ve got continued concerns with demand growth in the U.S.,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne, who predicts crude in New York will average $98 a barrel in the third quarter. “Overlay that with the stocks report and it weighs on oil.”


Namibia's mining body says new tax will curb investment
WINDHOEK, July 26 (Reuters) - Namibia's Chamber of Mines wants the government to reconsider plans to impose a further 17 percent tax on exploration and mining firms in the southern African producer of diamonds and uranium, saying it would discourage investors.
Namibia said on Friday it would increase mining corporate tax to 44 percent for miners other than diamond producers.

Mongolia state-owned miner signs coal deal with China's Chalco
ULAN BATOR, July 27 (Reuters) - Mongolia's state-owned miner Erdenes Tavan Tolgoi (TT) has agreed to sell $250 million worth of coal from the east Tsankhi deposit to Aluminium Corp of China Ltd (Chalco), a move insiders said was aimed at raising cash to help fund its impending listing fees.
Under the agreement, Chalco  would resell 30 percent of the coal to Japanese trading houses Itochu Corp  and Mitsui  as well as state-owned Korea Resources Corp (KORES), Erdenes TT LLC said in a statement seen on Wednesday.

U.S. tin premiums heading higher on short supplies
NEW YORK, July 26 (Reuters) - U.S. tin premiums have risen steadily as dealers price in prospects of tighter supplies and healthier demand in the second half of the year.
"One thing that is fairly certain is that nothing has changed on the supply-side of the equation ... supply is not increasing," said one physical tin dealer.

Albanian miners fast as strike in mine escalates
TIRANA, July 26 (Reuters) - A group of Albanian miners have entered the second day of a hunger strike to press Austrian miner DCM DECOmetal to meet their demands for a 20 percent pay rise and fresh investment, a union leader said on Tuesday.
Taf Koleci, president of the federation of trade unions of Albanian industrial workers, said 16 miners have been fasting for 30 hours now in a gallery 1,400 metres below surface, or 260 metres below sea level. Koleci had visited them.

Iron Ore-Shanghai rebar rises as exchange plans fee cuts, ore up
SHANGHAI, July 27 (Reuters) - Shanghai rebar futures rose on Wednesday after the Shanghai Futures Exchange said it planned to cut trading fees for rebar contracts by nearly half from August, buoying investor confidence and expectations of increased liquidity.
The exchange will cut transaction fees for its rebar contract  to 0.006 percent from 0.01 percent, and for copper  to 0.01 percent from 0.02 percent from Aug. 1, in a move to revive sagging liquidity by easing the costs burden for investors as well as brokers.

Brazil steel mills seen posting mixed results
SAO PAULO, July 26 (Reuters) - High inventory and a flurry of imports that pushed domestic prices lower likely hampered second-quarter earnings for the largest listed Brazilian steelmakers, a Reuters poll of analysts showed on Tuesday.
Quarterly results will probably signal that a new round of price cuts for some products looms, yet at a less intense pace. Rising raw materials prices, which affected earnings for mills this year, hampered profitability again.

Nippon Steel sees post-quake profit recovery, JFE lags
TOKYO, July 27 (Reuters) - Nippon Steel Corp , Japan's top steelmaker, forecast profits to rise this year as a slow global economic rebound bolsters demand, pushing it ahead of smaller rival JFE Holdings Inc  which expects earnings to dwindle.
Japan's two biggest steelmakers are recovering from the post-March 11 earthquake slump which weighed on their first quarter earnings reported on Wednesday. However, automakers are ramping up output and rebuilding projects are likely to boost demand.

U.S. steelmakers warn of weak outlooks
NEW YORK, July 26 (Reuters) - Many of the world's leading steelmakers warn that profits in the second half of this year will be hurt because of the slow economic recovery, along with lower steel prices and higher raw material costs.
Two American steel producers, AK Steel Holding Corp  and U.S. Steel Corp , gave dismal outlooks following similar alarm bells last week by Nucor Corp  and South Korea's POSCO , the world's No. 3 steelmaker.

Japan June aluminium shipments down 0.8 pct yr/yr
TOKYO, July 27 (Reuters) - Japanese shipments of aluminium products fell 0.8 percent in June from a year earlier to 178,452 tonnes, industry data showed on Wednesday.
That was up from 166,885 tonnes in May, data provided by the Japan Aluminium Association showed.

Copper Falls in New York as U.S. Durable-Goods Orders Decline (Source: Bloomberg)
Copper fell for the second time this week after orders for U.S. durable goods unexpectedly dropped, damping the outlook for metal demand. Bookings for goods meant to last at least three years fell 2.1 percent in June, the Commerce Department said today. The median forecast of 76 economists surveyed by Bloomberg News projected a 0.3 percent increase. The U.S. is the world’s largest copper user after China. “Durable-goods orders are a little bit of a disappointment for the market,” Frank Lesh, a trader at FuturePath Trading LLC in Chicago, said in a telephone interview. “We are seeing some reluctance on the part of buyers.”

Chile Escondida strike worsens world copper shortage
SYDNEY, July 27 (Reuters) - A prolonged strike at Chile's Escondida copper mine, the world's biggest, could push a global shortfall of copper concentrate deeper into deficit this year, driving smelting and refining charges lower.  
Failure to reach accord soon at Escondida, which extracts seven percent of the world's copper, will have serious implications for copper prices, already trading near record highs on the prospect of a shortfall in supply this year.

High prices seen cutting China spot copper demand in Aug/Sept
HONG KONG, July 27 (Reuters) - Strong London Metal Exchange copper prices may lead top buyer China to ease imports in the coming two months following increased spot copper bookings in May and June, trading sources said on Wednesday.
That may help cool LME copper prices , heading for their second monthly gain and inching towards a February 2011 record mark of $10,190 a tonne on supply worries.

METALS-Copper steady, Escondida strikes support
London, July 27 (Reuters) - Copper steadied on Wednesday after an increase of almost 2 percent in the previous session as supply worries due to strikes at the world's largest copper mine provide further upside potential for the red metal.
Benchmark copper on the London Metal Exchange  edged down 0.2 percent to $9,797 a tonne by 0910 GMT, less than 4 percent off a record high of $10,190 hit in February.

PRECIOUS-Gold hits record as U.S. debt fears deepen
July 27(Reuters) - Gold prices hit record highs on Monday for the sixth time in two weeks and silver and palladium rallied as concerns over the prospect of a U.S. default prompted investors to buy precious metals as a haven from risk.
Bitterly divided Republican and Democratic party leaders are scrambling to find common ground with less than a week before the government hits its borrowing limit approved by Congress, potentially triggering a default.

Gold Trades Near All-Time High as U.S. Lawmakers Strive to Avert Default (Source: Bloomberg)
Gold traded within 0.9 percent of a record as U.S. policy makers pushed competing proposals to increase the nation’s debt ceiling before an Aug. 2 deadline in a bid to prevent a default that may roil financial markets. Spot bullion, which reached an all-time high of $1,628.05 an ounce yesterday amid the political wrangling, traded little changed at $1,614.30 at 8:36 a.m. in Singapore time. Futures in New York were also little changed at $1,617.20 an ounce after reaching a record $1,631.20 yesterday. U.S. lawmakers remain deadlocked. Republican leaders plan to bring House Speaker John Boehner’s reworked deficit-cutting plan to a vote today, while Senate Majority Leader Harry Reid called his alternative “the only true compromise.” Asian stocks dropped today extending losses in the U.S.

U.S. assists two crop-for-aviation-fuel projects
WASHINGTON, July 26 (Reuters) - Farmers in four states in the U.S. West can qualify for a federal cost-sharing payment if they grow camelina, an oilseed, for conversion into jet fuel, the government said on Tuesday.
The assistance would encourage large-scale production -- up to 51,000 acres (21,000 hectares) -- of camelina for sale to aviation biofuel makers AltAir Fuels LLC, of Seattle, and Beaver Biodiesel LLC, of Portland, Oregon.

Asia Dry Bulk-Panamax rates to edge up on Indonesia coal
SINGAPORE, July 27 (Reuters) - Rates for panamax dry bulk carriers on key Asian freight routes are expected to inch higher over the next week on increased Indonesian coal shipments, shipbrokers said on Wednesday.
In the capesize market, benchmark rates for vessels travelling from Australia to China are seen lower because of waning iron ore demand from the world's second largest economy.

Genco Shipping Q2 profit beats Street
July 26 (Reuters) - Drybulk carrier Genco Shipping & Trading Ltd  posted its eighth estimate-beating profit in at least nine quarters as higher number of ships and increased operating days offset a fall in charter rates.  
For April-June quarter, the company's net income was $10.1 million, or 29 cents a share, compared with $36.8 million, or $1.16 per share, a year ago.

Baltic index stays weak, S.Africa coal strike eyed
LONDON, July 26 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell on Tuesday as fleet growth and slower iron and coal activity dragged earnings lower.
Brokers said a prolonged coal strike by workers in South Africa, one of the world's top five coal exporters and a key supplier to Atlantic and Pacific markets, could have a negative impact on the dry freight market, adding to the growing surplus of vessels and hitting trade volumes.

DryShips to buy OceanFreight for $118 mln
BANGALORE, July 26 (Reuters) - DryShips Inc , a Greece-based dry cargo shipper, said it would acquire smaller rival OceanFreight Inc  for $118 million to increase the number of large ships in its fleet when asset prices are low.
The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, has lost over a quarter of its value this year as vessel oversupply outpaces demand to ship commodities.