Friday, August 19, 2011

20110819 1813 FCPO EOD Daily Chart Study.


FCPO closed : 3003, changed : -23 points, volume : lower.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : turned downward, seller taking chances.
Support : 2970, 2930, 2900, 2850 level.
Resistance : 3020, 3050, 3070, 3100 level.
Comment :
FCPO closed recorded loss with lower volume transacted while overnight soy oil closed lower and currently trading weaker while crude oil currently recording huge losses.
Turmoil over global equity markets lead FCPO and broad commodities to trade lower but however anticipation of higher export release next Monday could have kept loss limited.
Daily chart formed a doji bar candle positioned between middle and lower Bollinger band level after market opened lower, moved upward tested above resistance level and fall lower tested below support level and traded range bound towards to end to closed at opening price.
Technical study resumed to suggesting a downside biased market development testing lower support.
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.

20110819 1745 FKLI EOD Daily Chart Study.


FKLI closed : 1474.5, changed : -18 points, volume : higher.
Bollinger band reading : downside biased.
MACD Histrogram : resume lower, seller returning.
Support : 1470, 1458, 1445, 1425 level.
Resistance : 1485, 1500, 1515, 1530 level.
Comment :
FKLI ended severely lower with better volume transacted doing about 9.5 points discount compare to cash market that closed recorded substantial losses. Overnight U.S. market closed recorded big drops and Asia markets slump significantly lower while European markets currently trading badly in red.
Regional market traded negatively as concern the U.S. recovery is faltering and Europe’s debt crisis will spread widely as a result investors seeking safer investment instrument triggered bonds climbed and gold rallied to a record.
Daily chart formed a down doji bar candle positioned between middle and lower Bollinger band level after market opened gap down, edge higher tested support turned resistance 1485 level and slide lower tested near 1470 support level and recovered slightly to closed off the low of the day.
Technical study turned to suggesting a downside biased market development testing lower support level with MACD indicator failed to do a positive cross up.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance, strength or break down with moderate cut loss and profit target.

20110819 1743 Regional Markets EOD Daily Chart Study.

DJIA chart reading : downside biased.

Hang Seng chart reading : downside biased.

KLCI chart reading : downside biased.

20110819 1617 Global Market & Commodities Related News.


Stocks slump on US recession fears, Europe woes
SINGAPORE, Aug 19 (Reuters) - Asian stocks extended losses, with South Korea's benchmark shedding 5 percent on growing fears the U.S. economy was sliding into recession and as some European lenders faced short-term funding strains, raising fears of a systemic banking crisis on the continent.
"(The U.S. data) presents the worst combination for an economy, i.e. slower growth but higher inflation, that impacted quite negatively sentiment in Asia trading hours," Frances Cheung, strategist at Credit Agricole told Reuters Insider.

Weather, USDA point to bigger US soy crop
CHICAGO, Aug 18 (Reuters) - A break in hot and dry weather in the U.S. Midwest grain belt, coupled with the historic trend in crop forecasts by the U.S. Department of Agriculture, could spawn a bigger soybean crop than estimated by the USDA this month.
Prices of Chicago Board of Trade soybean futures  have risen more than 4 percent since USDA's surprise reduction of U.S. soybean yield by 4.6 percent, or 2 bushels, from its July forecast in the Aug. 11 supply-demand report.

US corn at 1-week low, wheat slips as econ worries weigh
SINGAPORE, Aug 19 (Reuters) - Chicago corn slid to a one-week low, while wheat and soybeans lost more ground as renewed concerns over the U.S. economy sliding into a recession hammered commodities and equities.
"Equity markets are falling and the U.S. dollar is strong which are adding pressure on grains and oilseeds," said Ker Chung Yang, analyst at Phillip Futures in Singapore.

Argentina trims wheat area outlook, raises corn
BUENOS AIRES, Aug 18 (Reuters) - Argentina's government trimmed its forecast for 2011/12 wheat area to 4.5 million hectares from the 4.7 million hectares projected a month ago, the Agriculture Ministry said in a report on Thursday.
The South American country is one of the world's top suppliers of the grain. Wheat area this season is expected to be 2.9 percent bigger than in the 2010/11 crop year, when farmers produced 14.7 million tonnes of wheat.

Ivorian cocoa arrivals 1,379,440 T, declarations late
ABIDJAN, Aug 18(Reuters) - Cocoa arrivals at ports in top grower Ivory Coast reached 1,379,440 tonnes by Aug. 14, up from 1,125,046 tonnes in the same period a year ago, according to data from the Coffee and Cocoa Bourse (BCC) obtained by Reuters on Thursday.
The figures showed 2,623 tonnes of beans declared at the ports of Abidjan and San Pedro from Aug. 8 to Aug. 14, down from 16,486 tonnes in the same week of the 2009/2010 season.

Brazil coffee belt to turn cooler, rain but no frost
BRASILIA, Aug 18 (Reuters) - A cold front will sweep over Brazil's southeastern coffee belt over the weekend, bringing some rain but no frost, forecaster Somar said Thursday.
The lowest temperature forecast in any coffee area in the coming days was 5 degrees Celsius (41 degrees Fahrenheit), in the hilly Pocos de Caldas area of top coffee state Minas Gerais. Light
rain was forecast in the state as well as in smaller growers Parana and Sao Paulo.

Russia grain crop seen above 90 mln T-forecaster
MOSCOW, Aug 18 (Reuters) - Russia's 2011 grain harvest is likely to exceed 90 million tonnes, the country's chief weather forecaster said on Thursday as the country reaped grains from 42 percent of the area sown for this year's crop.
"The gross grain crop this year is going to be slightly above 90 million tonnes," Roman Vilfand, director of the Hydrometcentre weather forecasting service, told a news briefing.

Thai sugar cane output revised up, premiums fall
BANGKOK, Aug 18 (Reuters) - Thailand, the world's second-biggest sugar exporter, could produce a record 100 million tonnes of sugar cane in 2011/12, which would yield around 10 million tonnes of sugar, sending Thai premiums for next year's delivery down more than half.
The cane forecast by the Thai Sugar Millers Corporation on Thursday matched that by the International Sugar Organization (ISO) this week and was well above a projection by Thailand's Office of Cane and Sugar Board (OCSB) earlier in August of 92-95 million tonnes of cane, or 9.2 million tonnes of sugar.

Turkmenistan plans to raise 2012 wheat crop
ASHGABAT, Aug 18 (Reuters) - Turkmenistan plans to increase its 2012 wheat crop by 23 percent year-on-year to 1.6 million tonnes after missing its forecast for the current year, a source in the government of the Central Asian country said on Thursday.
The campaign to sow 860,000 hectares of land for the 2012 wheat harvest was already under way in the desert nation, said the source. Like most government officials in the reclusive former Soviet republic, he did not want to be identified.

US corn at 1-week low, wheat slips as econ worries weigh
SINGAPORE, Aug 19 (Reuters) - Chicago corn slid to a one-week low, while wheat and soybeans lost more ground as renewed concerns over the U.S. economy sliding into a recession hammered commodities and equities.
"Equity markets are falling and the U.S. dollar is strong which are adding pressure on grains and oilseeds," said Ker Chung Yang, analyst at Phillip Futures in Singapore.

Argentina trims wheat area outlook, raises corn
BUENOS AIRES, Aug 18 (Reuters) - Argentina's government trimmed its forecast for 2011/12 wheat area to 4.5 million hectares from the 4.7 million hectares projected a month ago, the Agriculture Ministry said in a report on Thursday.
The South American country is one of the world's top suppliers of the grain. Wheat area this season is expected to be 2.9 percent bigger than in the 2010/11 crop year, when farmers produced 14.7 million tonnes of wheat.

Ivorian cocoa arrivals 1,379,440 T, declarations late
ABIDJAN, Aug 18(Reuters) - Cocoa arrivals at ports in top grower Ivory Coast reached 1,379,440 tonnes by Aug. 14, up from 1,125,046 tonnes in the same period a year ago, according to data from the Coffee and Cocoa Bourse (BCC) obtained by Reuters on Thursday.
The figures showed 2,623 tonnes of beans declared at the ports of Abidjan and San Pedro from Aug. 8 to Aug. 14, down from 16,486 tonnes in the same week of the 2009/2010 season.

Brazil coffee belt to turn cooler, rain but no frost
BRASILIA, Aug 18 (Reuters) - A cold front will sweep over Brazil's southeastern coffee belt over the weekend, bringing some rain but no frost, forecaster Somar said Thursday.
The lowest temperature forecast in any coffee area in the coming days was 5 degrees Celsius (41 degrees Fahrenheit), in the hilly Pocos de Caldas area of top coffee state Minas Gerais. Light
rain was forecast in the state as well as in smaller growers Parana and Sao Paulo.

Russia grain crop seen above 90 mln T-forecaster
MOSCOW, Aug 18 (Reuters) - Russia's 2011 grain harvest is likely to exceed 90 million tonnes, the country's chief weather forecaster said on Thursday as the country reaped grains from 42 percent of the area sown for this year's crop.
"The gross grain crop this year is going to be slightly above 90 million tonnes," Roman Vilfand, director of the Hydrometcentre weather forecasting service, told a news briefing.

Thai sugar cane output revised up, premiums fall
BANGKOK, Aug 18 (Reuters) - Thailand, the world's second-biggest sugar exporter, could produce a record 100 million tonnes of sugar cane in 2011/12, which would yield around 10 million tonnes of sugar, sending Thai premiums for next year's delivery down more than half.
The cane forecast by the Thai Sugar Millers Corporation on Thursday matched that by the International Sugar Organization (ISO) this week and was well above a projection by Thailand's Office of Cane and Sugar Board (OCSB) earlier in August of 92-95 million tonnes of cane, or 9.2 million tonnes of sugar.

Turkmenistan plans to raise 2012 wheat crop
ASHGABAT, Aug 18 (Reuters) - Turkmenistan plans to increase its 2012 wheat crop by 23 percent year-on-year to 1.6 million tonnes after missing its forecast for the current year, a source in the government of the Central Asian country said on Thursday.
The campaign to sow 860,000 hectares of land for the 2012 wheat harvest was already under way in the desert nation, said the source. Like most government officials in the reclusive former Soviet republic, he did not want to be identified.

Markets can swallow Syrian oil loss, Iran a worry
LONDON, Aug 18 (Reuters) - Oil markets will quietly swallow the loss of modest Syrian supplies if Europe joins Washington in slapping new sanctions on the country, but prices would spike if Syria's ally and major oil producer Iran becomes directly involved in a confrontation with the West.
Analysts and traders said it would take several weeks before Syrian oil trade could grind to a halt, even if traders such as Vitol or Trafigura are forced to stop sending refined products for President Bashar Assad's government and companies such as Shell are forced to stop producing and exporting oil from Syria.

Oil falls on renewed demand fears
SINGAPORE, Aug 19 (Reuters) - Oil prices fell, extending the previous session's plunge, on renewed fears of weak demand following a slew of lacklustre data from the world's top oil consumer, the United States.  
"This short-term downturn is not done yet. It could take WTI to as low as $75. The fundamental picture is not that bad but if the overall economy remains weak it is very hard to make a case for a bull run in oil," said Tony Nunan, a risk manager with Mitsubishi Corporation in Japan.

Gold hits record on US growth, Europe woes
SINGAPORE, Aug 19 (Reuters) - Gold surged to record highs for a second consecutive session as investors reached for the safety of bullion amid a worsening economic outlook for the United States and concern about the health of Europe's banks.
"It's not surprising in view of more concerns about Europe and terrible data out of the U.S.," said Darren Heathcote, head of trading at Investec Australia.

Gold seen peaking at $1,900/oz in next 6 months -GFMS
MUMBAI, Aug 18 (Reuters) - Gold could hit $1,900 an ounce in the next six months, driven by buyers seeking an investment safe from global economic problems, but a further rise to $2,000 looks unlikely, metals consultancy GFMS said on Thursday.
"Gold will be muddling through to peak at $1,900 (an ounce)as U.S. data points have been ambiguous, the action on the fiscal and monetary front is also ambiguous," said Paul Walker, global head of precious metals at GFMS, which has been acquired by Thomson Reuters.

Prices, investment products in focus at India gold meet
MUMBAI, Aug 18 (Reuters) - As gold rallies to consecutive record highs, price, imports and investment demand for bullion will top the agenda at a conference in India, the metal's biggest consumer, this week.
Attendees will not have far to look for evidence of India's long-standing worship of gold, as the conference takes place in Kovalam, just an hour away from a $22 billion treasure hoard found last month under a temple in Kerala's state capital.

Gold move higlights risks to Venezuela reserves
CARACAS, Aug 18 (Reuters) - Venezuela's surprise move to bring home its international bullion reserves from Western banks shines a spotlight on the country's heavy reliance on gold, and the risks it runs if prices were to fall.
President Hugo Chavez said on Wednesday the government will repatriate almost all of its $11 billion in gold reserves held abroad, saying they will be safer than in states with mounting debt worries in Europe and the United States.

20110819 1143 Global Market & Commodities Related News.


GLOBAL MARKETS-Stocks slump on recession fears, gold jumps
SINGAPORE, Aug 19 (Reuters) - Asian stocks tumbled as much as 4 percent on Friday on growing fears that the U.S. economy was sliding into recession and as some European lenders faced short-term funding strains, raising fears of a systemic banking crisis on the continent. Gold hit a fresh high of $1,833.81 an ounce as investors rushed into the safe-haven after heavy losses on U.S. and European markets overnight.
"Investors have been spooked by these data. They are now focusing on next week's data such as U.S. GDP," said Yumi Nishimura, a senior market analyst at Daiwa Securities.

Brent oil drops nearly $4 as recession fears grow
NEW YORK, Aug 18 (Reuters) - Brent crude oil fell nearly $4 a barrel on Thursday as a raft of weak U.S. economic data provided a fresh blow to shaky investor confidence, while U.S. crude's losses extended to 14 percent so far in August.
"It's much of the same -- concerns over European banks, U.S. deficits weighing on economic growth and the possibility of a global recession as the end result," said Chris Jarvis, senior analyst for Caprock Risk Management in Hampton Falls, New Hampshire.

US oil speculative data released by Senator, sparking ire
WASHINGTON, Aug 18 (Reuters) - Oil trading data that exposed the extensive positions speculators held in the run-up to record high prices in 2008 were intentionally leaked by a U.S. senator, sparking broader concern about industry confidentiality as Congress moves on Wall Street reform.
Senator Bernie Sanders, a staunch critic of oil speculators, leaked the information to a major newspaper in a move that has unsettled both regulators and Wall Street alike.

NYMEX-Natural gas ends down, hits 5-month low after EIAs
NEW YORK, Aug 18 (Reuters) - U.S. natural gas futures ended lower on Thursday for the fourth time in five sessions, with the front-month contract diving to its lowest since mid-March  after a government report showed a weekly inventory build slightly above market expectations.
"(The EIA build) was in line with our expectations, but it was still bearish relative to last year and the five-year average. (EIA data) continues to show that this is a well supplied market," said Eric Bickel, analyst at Summit Energy.

Euro Coal-Futures sustain slight downward trend
LONDON, Aug 18 (Reuters) - European coal futures fell on Thursday, sustaining a slow downward trend that began this month as economic uncertainties around the world hamper the outlook for coal demand in 2012.
"Coal is the most important fuel for electricity, and electricity is an important measure for industrial activity, so if the economic outlook is uncertain, coal prices are immediately affected," one coal trader with a bank said.

COMMODITIES-Markets close with biggest drop since US downgrade
NEW YORK, Aug 18 (Reuters) - Oil closed down 6 percent on Thursday, tumbling with other commodities that reflect investors' risk appetite as renewed economic fears triggered the biggest losses since the Aug. 5 U.S. credit downgrade.
"It's much of the same -- concerns over European banks, U.S. deficits weighing on economic growth and the possibility of a global recession as the end result," said Chris Jarvis, senior analyst for Caprock Risk Management in Hampton Falls, New Hampshire.

PIMCO sees commodities rising, sticks with oil
CHICAGO, Aug 18 (Reuters) - Pimco has largely stuck with its positions in the oil market despite the recent slide and expected commodities prices to rise in the longer term, the manager of its largest commodity mutual fund said on Thursday.
Mihir Worah, who manages the $26.9 billion Pacific Investment Management Co's Commodity Real Return Strategy Fund, said the fund had, however, taken measures to protect against an expected slowdown in the U.S. economy and avert risk.

20110819 1002 Local & Global Economic Related News.


The government has projected 5.0-6.0% GDP growth this year, PM Datuk Seri Najib Tun  Razak said Thursday. "However, we feel the growth is more towards nearing 5.0% from  6.0% given the current uncertain economic climate," said Najib.  
• "It's very difficult for us to make assumptions based on one figure alone. We've decided  that the range will be between 5% and 6%. We're still maintaining the target," he said.
• On inflation, Najib said that it was still manageable, with latest figures showing there  was a slight decline.  
• He said measures being taken such as reducing chicken price have had an impact in  efforts to control the inflation rate in the country.  
• On  deficit target, Najib said the government's commitment to reduce  the deficit from  5.6% to 5.4% was on track. (Bernama)  

Income tax was deducted from the  half-month bonus for civil servants on 15 Aug to  ease their burden when calculating and settling it later, explained Inland Revenue Board  (IRB) Public Relations Officer Noorhelmi Azrul Mohd Nor. "The bonus is like any  supplemental payment or incentive which is subject  to tax. The amount deducted  was  based on IRB's calculation formula,” she said. (Bernama)  

The government is in the process of amending the Weights and Measures Act 1972 to  calibrate water and electric meters to avoid inconveniencing the people. Domestic Trade,  Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob, said under the  proposed amendment, the ministry's officers would be empowered to check the meters  every year. "I believe we could issue the new regulation by early next year,” he said.  (Bernama)

Japan: Exports fall more-than-expected 3.3% as Yen advances

Japan’s exports fell more than expected in July as a global slowdown and a strengthening currency weigh on the outlook for the nation’s sales overseas. Exports decreased 3.3% in July from a year earlier, the Finance Ministry said yesterday. Shipments rose 0.8% in July from June on a seasonally adjusted basis. The yen’s 6% advance against the dollar in the past three months may weigh on overseas sales at a time when demand from major markets such as China and the US is faltering. (Bloomberg)

Taiwan: GDP rose at slowest pace since ’09, cuts outlook
Taiwan’s economy grew at the slowest pace since 2009 last quarter and the government cut its growth and inflation forecasts, as faltering recoveries in the U.S. and Europe cloud the outlook for Asia. GDP rose 5.02% in the three months through June from a year earlier, compared with a 6.16% climb in the first quarter, the statistics bureau said in revised estimates released yesterday. Its preliminary second-quarter assessment last month was 4.88%. (Bloomberg)

Euro: Construction output falls on declines in Germany, France
European construction output dropped for the first time in three months in June, led by declines in Germany and France. Construction in the 17-nation euro region fell 1.8% from May, when it rose a revised 0.1%, the European Union’s statistics office said yesterday. From a year earlier, output plunged 11.3%. In Germany, Europe’s largest economy, construction dropped 4.5% in June after a 0.2% decrease in the prior month, according to yesterday’s report. French building retreated 0.1% after a 0.8% drop in May. (Bloomberg)

UK: Retail sales rise less than forecast on clothing demand
UK retail sales rose less than economists forecast in July as demand at clothes and household- goods stores dropped. Sales including fuel rose 0.2% from June, when they increased a revised 0.8%, the Office for National Statistics said yesterday. On the year, sales were unchanged. Asda, the UK unit of Wal-Mart Stores Inc., said on 16 Aug that sales growth slowed in the second quarter as fewer shoppers visited its stores because of higher fuel prices. (Bloomberg)

US: Consumer prices climb, manufacturing falters
The cost of living in the U.S. climbed more than forecast in July, which could make it harder for Federal Reserve Chairman Ben S. Bernanke to convince colleagues to immediately act to spur growth after manufacturing in the Philadelphia region plunged in August. The consumer-price index increased 0.5% from June figures from the Labor Department showed yesterday in Washington. The Philadelphia Fed’s general economic index dropped to minus 30.7 this month, the lowest since March 2009, when the economy was in a recession. (Bloomberg)

US: Existing home sales unexpectedly decreased in July
Sales of U.S. previously owned homes unexpectedly dropped in July, reflecting an increase in contract cancellations due to strict lending rules and low appraisals. Purchases decreased 3.5% to a 4.67m annual rate, the weakest since November, figures from the National Association of Realtors showed yesterday. The median price dropped 4.4% from a year earlier, and 16% of real estate agents polled said they had at least one pending contract canceled last month. (Bloomberg)

US: Jobless claims rose more than forecast last week
More Americans than forecast filed applications for unemployment benefits last week, signaling the labor market is struggling two years into the economic recovery. Jobless claims climbed by 9,000 to 408,000 in the week ended 13 Aug, the highest in a month, Labor Department figures showed today in Washington. The number of people on unemployment benefit rolls rose, while those receiving extended payments fell. (Bloomberg)

US stocks tumble on global economy, European funding concerns
US stocks tumbled, sending the Dow Jones Industrial Average down more than 400 points for the fourth time this month, on concern the global economy is slowing and speculation that European banks lack enough capital.
Caterpillar Inc and FedEx Corp fell at least 4.9%, pacing losses in stocks most-tied to the economy, as a Philadelphia-area manufacturing index sank to the lowest since 2009, jobless claims and consumer prices rose, and existing home sales slid. Bank of America and Citigroup fell more than 6%, following a plunge in European lenders. Hewlett- Packard sank 6% after cutting its earnings forecast. The S&P 500 Index slumped 4.5% at 4pm in New York. All 10 groups in the S&P 500 dropped at least 1.2%, and only 10 stocks in the benchmark gauge advanced. The Dow fell 419.63 points, or 3.7%, to 10,990.58 (Bloomberg)

20110819 1001 Malaysia Corporate Related News.

Tenaga Nasional Bhd Issues profit warning
Tenaga Nasional Bhd (TNB) may not be able to maintain its dividend payments for the current financial year ending Aug 31 (FY11) as it was severely affected by gas curtailment by Petroliam Nasional Bhd (Petronas). TNB needed to replace the shortfall in gas volume by utilising more oil and distillates which are five times more expensive than gas. President and chief executive officer Datuk Seri Che Khalib Mohamad Noh said the utility giant was incurring an additional RM400.0mil a month to replace the shortfall in gas. He issued a profit warning as the additional high fuel costs continued to eat into its cash flow. Che Khalib said that their policy is to pay 60.0% of their free cash flow as dividend for their shareholders. In FY10, TNB paid a total of 26 sen per share as dividend, representing 52.5% of its free cash flow while net dividend payable for FY10 stood at RM848.8mil. It announced an interim dividend of 4.5 sen per ordinary share less income tax of 25% in respect of FY11. - StarBiz

Axiata Group Bhd To stick to 20% stake in India telco
Axiata Group Bhd has confirmed that it is not planning to increase its stake in India-based IDEA Cellular Ltd beyond 20.0%, contrary to reports that it was looking to raise its stake to 25.0%. The Economic Times of India had recently said Axiata might raise its stake in its Indian telco associate to 25.0%, sending the latter’s share price up as much as 3.23% to 97.5 rupees in mid-morning trade. IDEA shares closed yesterday at 95.01 rupees. IDEA’s largest shareholder is the Aditya Birla group with a 25.0% stake. - StarBiz

YTL Power International Bhd Yes targets 400,000 subscribers by Dec
YTL Communications Sdn Bhd (YTL Comms), a unit of YTL Power Bhd, expects to have 400,000 subscribers for its 4G mobile Internet-with-voice service. To date, the company has about 300,000 subscribers since it launched the service last November. Chief executive officer Wing K. Lee said the company’s plan to launch its network to the east coast of Peninsular Malaysia next month should help in achieving the target. Lee said YTL Comms is in the midst of undertaking a business plan to secure licences to roll out its Yes service in Sabah and Sarawak Lee added that YTL Comms is actively making improvements so that it could provide the fastest mobile Internet service anywhere in the country. – Business Times

AirAsia Bhd Passengers up in July
The number of passengers carried by AirAsia group last month rose 19.3% to 2.6 million from 2.2 million a year ago. AirAsia Malaysia contributed about 58.2% or 1.5 million (a 12.1% year-on-year increase) of the group’s passenger traffic in July, said AirAsia Bhd in a statement yesterday. The group’s Thai and Indonesian units carried 567,100 and 541,220 passengers respectively in July, it said. The load factor for the group rose by 3.0% year-on-year to 82.0% while revenue passenger kilometres increased to 3.1 million, up 20.5% year-on-year compared with 2.6 million a year ago. - StarBiz

Dialog proposes cash call to raise RM638m
Dialog Group has proposed its first cash call from its shareholders to raise up to RM638m under a rights issue with free warrants, on the basis of two rights shares and one warrant for every 10 shares held. The company said on 18 Aug the corporate exercise would involve a renounceable rights issue of up to 398.73 million new shares of 10 sen each with 199.36m free detachable warrants. “The cash call is the first equity fund raising from its shareholders since its initial public offer in 1996. Based on the indicative issue of RM1.60, the corporate exercise would raise up to RM638m. It said the rights shares and warrants would on the basis of two rights shares and one warrant for every 10 shares held, based on a minimum subscription of 280 million rights shares with 140 million warrants. It also proposed to increase in the authorised share capital from RM250m comprising 2.5bn shares to RM500m comprising five billion shares. (Financial Daily)

Petra Energy stake up for sale?
O&G services provider Perdana Petroleum (formerly Petra Perdana Bhd) is looking to sell its 29.59% equity interest in Petra Energy, say industry sources. While details are scare, at Petra Energy’s close of RM1.26 yesterday, Perdana Petroleum’s stake of 57.7m shares had a market value of RM72.7m. However, as at end-June, Petra Energy’s net asset per share was RM1.62, which could fetch a better price. (Financial Daily)

MRT Co takes over
The Cabinet has set up MRT Co, a company under the Minister of Finance, to directly oversee the multi-billion ringgit Klang Valley MY Rapid Transit (MRT) project. MRT Co will officially become MY Rapid Transit project and asset owner, currently held by Syarikat Prasarana Negara Bhd, from 1 Sept. The government will name a local as MRT Co's chief executive officer at a later date, according to a statement by Pemandu. "MRT Co's immediate and critical priority is to focus on ensuring the smooth implementation of the Sungai Buloh-Kajang Line," Pemandu said. With MRT Co in the picture, Prasarana will now be able to focus on its role to ensure an efficient and reliable public transportation service in the Klang Valley, it added. (BT)

Bursa Malaysia Securities has publicly reprimanded and fined  Macquarie Capital  Securities and two of its former heads of dealing RM85,000 for inflating trades in several  securities over a period of eight months. The securities exchange imposed fines of  RM50,000, RM25,000 and RM10,000 on Macquarie, Thomas Chin Yun Phin and Hilton  Lee, respectively, after they were found guilty of breaching Rule 1301.2 of Bursa Securities  Rules following an investigation into the matter.   “The breach is in relation to dealing  activities undertaken at Macquarie in several securities over a period of eight months,  which resulted in inflated volumes of trades for the relevant securities in excess of clients’  orders (inflated trades),” Bursa Malaysia Securities added. (Malaysian Insider)

AMMB Holdings  remains tight-lipped on whether Australia and New Zealand Banking Group (ANZ) plans to raise its interest in the banking group. "The current shareholding  remains the same," said AMMB's group MD Cheah Tek Kuang. Mr. Cheah admitted that  the banking group was keen on M&A only if it adds value to the group. (BT)

Sarawak Tourism Board (STB) plans to discuss issues regarding the recent collaboration  agreement between MAS and AirAsia as it has created uncertainty among tourism players  in Sarawak. (Bernama)

Hartalega Holdings, the largest producer of nitrile gloves in Malaysia, has announced a  policy to pay a minimum 45% of its annual net profit as dividends starting from its current  financial year ending March 31, 2012 (FY12). “The keyword is minimum,” said MD Kuan  Kam Hon at the company AGM, adding that Hartalega was optimistic about the outlook for  the global demand of nitrile gloves. “We are already seeing raw material prices weakening  and this will have a lesser impact on our profit margins. We have an internal target of  growing our bottom line by 10% and top line by 25% (for FY12),” he said. (Starbiz)  

Hua Yang,  with a niche in affordable housing, currently has about a dozen projects  throughout the country with a gross development value (GDV) of RM650m. CEO Ho Wen  Yan said for the current year ending 31 Mar 12, the company will be launching projects  with a total GDV of RM525m. About a third of the GDV or RM154m has been fully booked,  which is the 418-unit serviced apartment at One South (Phase 2).
• "Of the seven projects to be launched in the current year, 70% of the GDV or RM370 will  be in Selangor, 24% or RM126m in Johor and the remaining RM29m in Perak," he said.  (BT)

A consortium of Malaysian Chinese businessmen have got the green light to take over Pan  Malaysian Pools, which runs the Da Ma Cai numbers betting outlet, with the government  saying "it's a free market". "It is his (referring to tycoon T Ananda Krishnan) company. It is  a free market. Willing buyer and willing seller," PM Najib Abdul Razak, who is also finance  minister, said today. Najib said after chairing a National Finance Council meeting in  Putrajaya that although the Finance Ministry controlled the licence, the bid for the gaming  company's assets was according free market principles. (Malaysia Kini)  

UEM Group engineering and construction arm, UEM Builders, is committed to adoption of  the Industrialised Building System. (Bernama)  

Fitters Diversified was reprimanded by Bursa Malaysia yesterday for the late submission  of its annual audited accounts for FY10 ended 31 Dec. (Financial Daily)

ACE Market-listed machine design company Genetec Technology is looking on the bright  side when it comes to the hard disk drive (HDD) industry, saying that the impact of the  increasing popularity of solid-state drives (SSDs) will not render HDDs redundant.
• The outlook for the HDD industry is not as bleak as put forward by some parties, said  Genetec executive director and chairman Ronnie Ortscheid (Financial Daily)  

Padiberas Nasional  may close down its Save More community stores, which started  operations barely three years ago. Save More is owned by Bernas Project Development  (BPD), a wholly-owned unit of Bernas. (BT)

Johore Tin  is venturing into the food and beverage manufacturing business with the  acquisition of Able Dairies for RM31m. (Malaysian Reserve)  

Shared-farming operator  Golden Palm Growers (GPGB) yesterday announced its first  dividend payout of the guarantee 6% net yield as well as a 2% bonus after operating for a year beginning August 2010. (Malaysian Reserve)

20110819 0958 Global Market Related News.


Asian Stocks Slide, Revisiting Last Week’s Lows, on Global Economy Concern (Source: Bloomberg)
Asian stocks fell, revisiting levels from last week’s worldwide stock rout, amid signs the global economy is slowing and Europe’s debt crisis will damage the banking system. BHP Billiton Ltd. (BHP), the world’s largest mining company, lost 3.1 percent in Sydney after oil and metal prices slumped. Billabong International Ltd. (BBG), a surfwear maker that gets almost half its sales from the Americas, tumbled 21 percent after annual profit missed analyst estimates and U.S. jobless claims and consumer prices advanced faster than projected. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest bank by market value, dropped 1.1 percent in Tokyo. Toyota Motor Corp. (7203), the world’s largest carmaker, sank 1.5 percent after Goldman Sachs Group Inc. lowered its rating on the Japanese auto sector.
The MSCI Asia Pacific Index fell 2.2 percent to 120.49 as of 10:17 a.m. in Tokyo. The gauge is headed for lowest close since Aug. 8, and a fourth straight week of loss. About 20 stocks dropped for each that advanced on the index today.

GLOBAL MARKETS-Growth worries hobble stocks, Swiss franc slips
LONDON, Aug 18 (Reuters) - European equities followed Asian stocks lower on Thursday as investors fretting about the global growth outlook cut exposure to riskier assets, while the Swiss franc fell on talk the central bank was intervening in the forwards market.
"At the start of the week, we were expecting a selloff and it hadn't materialised, with people selectively putting money into a few stocks keeping the froth alive, and so I think it is overdue," the head.

Growth worries hobble stocks, Swiss franc slips
LONDON, Aug 18 (Reuters) - European equities followed Asian stocks lower on Thursday as investors fretting about the global growth outlook cut exposure to riskier assets, while the Swiss franc fell on talk the central bank was intervening in the forwards market.
"At the start of the week, we were expecting a selloff and it hadn't materialised, with people selectively putting money into a few stocks keeping the froth alive, and so I think it is overdue," the head of institutional trading at a UK-based investment bank, said.
 
U.S. Consumer Prices Rise More Than Forecast (Source: Bloomberg)
The cost of living in the U.S. climbed more than forecast in July, which could make it harder for Federal Reserve Chairman Ben S. Bernanke to convince colleagues to immediately act to spur growth after manufacturing in the Philadelphia region plunged in August. The consumer-price index increased 0.5 percent from June, more than twice the 0.2 percent median forecast of economists surveyed by Bloomberg News, figures from the Labor Department showed today in Washington. The Philadelphia Fed’s general economic index dropped to minus 30.7 this month, the lowest since March 2009, when the economy was in a recession. Stocks slumped and gold prices soared to a record as the data showed the world’s largest economy was in danger of shrinking even as inflation picked up. Another report showed fewer Americans on average filed claims for unemployment benefits over the past month, indicating the job market is holding up for now.

Consumer Confidence in Economy Lowest Since Recession in Bloomberg Index (Source: Bloomberg)
Consumer confidence in the U.S. economic outlook slumped in August to the lowest level since the recession, raising the risk that spending will dry up. The Bloomberg Consumer Comfort Index’s monthly expectations gauge dropped to minus 34, the weakest since March 2009, from minus 22 in July. The weekly measure of current conditions was minus 48.3 for the period ended Aug. 14 compared with minus 49.1, which was the worst reading since mid-May. The most unstable market in the history of American stocks, wage gains that are failing to keep up with inflation and unemployment hovering around 9 percent may be causing Americans to lose faith that the economy and their financial situations will soon improve. Applications for unemployment benefits climbed last week to the highest level in a month.

U.S. Fed’s Low-Interest-Rate Pledge May Retard Recovery, Fisher Tells CNBC (Source: Bloomberg)
Federal Reserve Bank of Dallas President Richard Fisher said the central bank’s pledge to keep the benchmark U.S. interest rate near zero through at least mid- 2013 may lead to “unintended consequences” and hurt growth. “Now you know that you can wait to borrow because rates are going to be locked in at very low levels for a two-year period,” the regional bank chief said today in an interview with CNBC. “This might well further retard the recovery.” The Dallas Fed chief joined presidents Charles Plosser of Philadelphia and Narayana Kocherlakota from Minneapolis this month in posing the most opposition in almost 19 years to a Federal Open Market Committee decision. They dissented from the FOMC’s Aug. 9 decision to hold interest rates near zero at least until mid-2013, preferring instead to maintain a commitment to do so for an unspecified “extended period.”

Obama Plans to Announce Jobs Stimulus Package With Bigger Cuts in Deficit (Source: Bloomberg)
President Barack Obama is seeking to revive a version of the so-called grand bargain with congressional Republicans that would combine long-term U.S. deficit reduction through entitlement benefit cuts and tax increases with immediate steps to boost job growth. Obama plans to press Congress for billions of dollars in fresh spending to reduce unemployment as he also pursues a compromise on long-term deficit cuts. He will begin by laying out his ideas in a speech shortly after the U.S. Labor Day holiday, which is Sept. 5. With the U.S. unemployment rate at 9.1 percent and economic growth slowing, Obama’s aides are working on a mix of tax cuts and infrastructure spending beyond the measures he has been promoting over the last several weeks, an administration official said, speaking on condition of anonymity because details for the speech haven’t been completed.

Jobless Claims in U.S. Top Forecast (Source: Bloomberg)
More Americans than forecast filed applications for unemployment benefits last week, signaling the labor market is struggling two years into the economic recovery. Jobless claims climbed by 9,000 to 408,000 in the week ended Aug. 13, the highest in a month, Labor Department figures showed today in Washington. Economists surveyed by Bloomberg News projected a rise in claims to 400,000, according to the median forecast. The number of people on unemployment benefit rolls rose, while those receiving extended payments fell. Companies like Bank of New York Mellon Corp. (BK) are paring staff, one reason consumers are limiting their spending, which accounts for about 70 percent of the economy. Unemployment at 9.1 percent helps explain why Federal Reserve policy makers last week pledged to hold interest rates at a record low until at least mid-2013 to spur growth.

Philadelphia-Area Factory Index Falls to -30.7, Lowest Since March of 2009 (Source: Bloomberg)
Manufacturing in the Philadelphia region unexpectedly contracted in August by the most in more than two years as orders plunged and factories shed workers. The Federal Reserve Bank of Philadelphia’s general economic index plunged to minus 30.7 this month, the lowest since March 2009, from 3.2 in July. The August gauge exceeded the most pessimistic projection in a Bloomberg News survey in which the median estimate was 2. Readings less than zero signal contraction in the area covering eastern Pennsylvania, southern New Jersey and Delaware. Stocks extended their decline after the figures showed weaker demand from consumers and companies in the U.S. and abroad is posing a risk to the industry that spearheaded the recovery. Fewer customer inventories may indicate producers will see a smaller decrease in orders should the U.S. economy falter.

Existing U.S. Home Sales Unexpectedly Decline to 4.67 Million Annual Rate (Source: Bloomberg)
Sales of U.S. previously owned homes unexpectedly dropped in July, reflecting an increase in contract cancellations due to strict lending rules and low appraisals. Purchases decreased 3.5 percent to a 4.67 million annual rate, the weakest since November, figures from the National Association of Realtors showed today in Washington. The median forecast of economists surveyed by Bloomberg News called for an increase in sales. The median price dropped 4.4 percent from a year earlier, and 16 percent of real estate agents polled said they had at least one pending contract canceled last month. Even with historically low borrowing costs and foreclosure- induced price declines, fewer homebuyers are entering the market. Job growth that’s failed to bring unemployment below 9.1 percent alongside a steady supply of distressed dwellings indicates many Americans may still not be in a position to consider purchasing a home.

Fed’s Dudley Sees Growth Rebounding This Year, ‘Quite Low’ Recession Risk (Source: Bloomberg)
Federal Reserve Bank of New York President William C. Dudley said he expects that the U.S. economy will improve this year after an “anemic” first half and not slip back into a recession. “We very much still expect the economy to recover,” Dudley, 58, said today in response to audience questions after a speech in Newark, New Jersey. Growth during the second half of 2011 will be “significantly firmer” than in the first six months, and the risk of recession remains “quite low,” he said. The policy-setting Federal Open Market Committee last week pledged to keep its benchmark interest rate near zero until at least mid-2013 to revive a recovery that’s “considerably slower” than anticipated. The Fed made the rate pledge after Standard & Poor’s downgraded the U.S. government’s credit rating and Europe’s debt crisis worsened, roiling markets worldwide.

Treasuries Gain on Signs of Slower Growth; 10-Year Yield Nears Record Low (Source: Bloomberg)
Treasuries rose, pushing 10-year yields toward the record low set yesterday, as investors sought refuge in the world’s safest securities on concern global growth is slowing and speculation inflation will remain subdued. U.S. government debt has returned 3.28 percent in August, Bank of America Merrill Lynch data show, on pace for the best month since December 2008 a week after the Federal Reserve said it would keep borrowing costs unchanged until at least mid-2013. Bank of America’s Global Broad Market Index has increased 1.93 percent in August. “We have witnessed a precipitous drop in yield, and it’s not over,” said Akira Takei,’’ head of the international fixed- income department at Mizuho Asset Management Co. in Tokyo, which oversees the equivalent of $39.1 billion and is a unit of Japan’s second-largest bank. “A recession can’t be ruled out. There are more hard times to come.”

U.S. Stocks Tumble on Concern Over Global Economy, European Banks’ Capital (Source: Bloomberg)
U.S. stocks tumbled, sending the Dow Jones Industrial Average down more than 400 points for the fourth time this month, on concern the global economy is slowing and speculation that European banks lack enough capital. Caterpillar Inc. (CAT) and FedEx Corp. (FDX) fell at least 4.9 percent, pacing losses in stocks most-tied to the economy, as a Philadelphia-area manufacturing index sank to the lowest since 2009, jobless claims and consumer prices rose, and existing home sales slid. Bank of America Corp. (BAC) and Citigroup Inc. (C) fell more than 6 percent, following a plunge in European lenders. Hewlett- Packard Co. sank 6 percent after cutting its earnings forecast.
The Standard & Poor’s 500 Index slumped 4.5 percent to 1,140.65 at 4 p.m. in New York. All 10 groups in the S&P 500 dropped at least 1.2 percent, and only 10 stocks in the benchmark gauge advanced. The Dow fell 419.63 points, or 3.7 percent, to 10,990.58. Treasuries rallied, pushing 10-year yields to a record low. About 11.6 billion shares changed hands on U.S. exchanges as of 4:27 p.m., 44 percent more than the three-month average, according to data compiled by Bloomberg.

Dollar Climbs as Economy Outlook, Contagion Concern Fuel Treasuries Demand (Source: Bloomberg)
The dollar advanced against most of its major counterparts as Asian stocks extended a worldwide rout in equities amid speculation European banks lack sufficient capital. The yen fell for the first time in four days against the greenback as Finance Minister Yoshihiko Noda signaled he’s ready to do another "surprise" intervention in markets to curb gains the currency. The Australian dollar fell as concern over slowing global growth damped demand for higher-yielding assets. The euro weakened versus the dollar before a report forecast to show German producer-price inflation slowed in July. “The situation in Europe seems to be deteriorating by the day,” said Chris Weston, an institutional dealer at IG Markets in Melbourne. “If we do see an escalation and people start focusing again on credit markets like they did in 2008, the dollar will be back in vogue against the risk currencies."

Japan Exports Fall More Than Expected as Yen Gains Cloud Economic Outlook (Source: Bloomberg)
Japan’s exports fell more than expected in July as a global slowdown and a strengthening currency weigh on the outlook for the nation’s sales overseas. Exports decreased 3.3 percent in July from a year earlier, the Finance Ministry said today in Tokyo. The median estimate of 24 economists surveyed by Bloomberg News was for a 2.6 percent decline, after a 1.6 percent decrease in June. Shipments rose 0.8 percent in July from June on a seasonally adjusted basis. The world’s third-largest economy is counting on an export revival to aid its rebound from the record earthquake in March. The yen’s 6 percent advance against the dollar in the past three months may weigh on overseas sales at a time when demand from major markets such as China and the U.S. is faltering.

Posen’s BOE Stimulus Push Shapes Debate as European Debt Crisis Persists (Source: Bloomberg)
Bank of England policy maker Adam Posen’s 11-month push for more stimulus is now shaping the debate among officials as they consider whether the U.K. needs more quantitative easing to fight the danger of Europe’s crisis. With no policy maker seeking an interest-rate increase after Spencer Dale and Martin Weale switched votes, the discussion on the Monetary Policy Committee has shifted toward Posen’s agenda. He has pushed since October to increase the bank’s 200 billion-pound ($261 billion) bond-purchase plan. At stake is whether the U.K. can withstand an intensifying debt crisis in its biggest export market at a time when the domestic economy is struggling to grow and unemployment is rising. Spending cuts by Prime Minister David Cameron’s government to reduce Britain’s deficit have left the onus on the Bank of England to provide stimulus if the recovery falters.

European Stocks Sink Most Since 2009 on Growth, Funding Concerns (Source: Bloomberg)
European equities plummeted the most in more than two years as U.S. economic data missed forecasts, two Federal Reserve officials said the central bank shouldn’t act to protect stock investors and Swedish regulators warned that lenders are unprepared for a freeze in money markets. Dexia SA (DEXB) and Societe Generale SA slid more than 12 percent as the Wall Street Journal also said that U.S. regulators are stepping up scrutiny of Europe’s largest lenders. Fiat SpA (F) lost 12 percent as a gauge of carmakers fell 7.4 percent. Holcim Ltd. (HOLN) sank 8 percent as the world’s second-biggest cement maker reported profit that missed estimates. The Stoxx Europe 600 Index plunged 4.8 percent to 226.7 at the 4:30 p.m. close in London, the biggest drop since March 2009, as only four stocks gained. The gauge has tumbled 22 percent from this year’s peak in February amid concern that Europe will fail to contain its sovereign-debt crisis and that the economic recovery in the U.S. will falter.

FOREX-Swiss franc falls, traders say SNB in swap mkt
LONDON, Aug 18 (Reuters) - The Swiss franc fell against the euro and the dollar on Thursday, with traders citing talk the Swiss National Bank was intervening in the forwards market as part of efforts to curb the surging currency.
The dollar rose against commodity-linked currencies like the Australian dollar  while the yen was supported as European stocks fell and money market strains drove investors to the relative safety of the U.S. and Japanese currencies.

20110819 0957 Global Commodities Related News.

Corn (Source: CME)
US corn futures close lower as traders reduce risk across equity and commodity markets. Pressure from losses in stocks and crude oil "put us in a real hole right off the bat," says Jerry Gidel, analyst for North America Risk Management Services, about corn's slide. Commodity funds reduced their bullish bets after the most-active December corn contract reached a contract high yesterday, traders say. The funds sold an estimated 11,000 contracts, a moderate amount. CBOT December corn ends down 12 1/2c at $7.13 a bushel.

Wheat (Source: CME)
US wheat futures finish lower as global economic jitters drag down equity and commodity markets. Wheat feels additional pressure after Egypt, the world's top buyer of the grain, makes purchases from Russia and Romania in a tender, snubbing the US. Exporters in the Black Sea region continue to undercut US prices. Yet, US prices won't pullback too much due to concerns about damage to the spring wheat crop, traded at MGEX, analysts say. CBOT December wheat slumps 18 3/4c to $7.39 1/4 a bushel, while KCBT December loses 27 1/2c to $8.19 1/2 and MGEX December dips 12c $8.92 3/4.

Rice (Source: CME)
US rice futures end weaker, sliding with the rest of the grains under pressure from external markets. Losses in equities and crude oil set a negative tone for rice, wheat, corn and soy, prompting traders to reduce risk. Yet, the setback isn't expected to extend too far due to global supply concerns, analysts say. CBOT September rice loses 29c to $16.88 1/2 per hundredweight.

US wheat falls from 2-month top; corn, soy ease
SINGAPORE, Aug 18 (Reuters) - U.S. wheat slid nearly 1 percent , ending a seven-session rally, while corn lost more ground on a broad-based weakness in financial markets triggered by concerns over global economic growth.
"It is more of a macro economic selloff than anything else," said Adam Davis, a senior analyst at Merricks Capital, a Melbourne-based fund that invests in agriculture. "Crude oil is off this morning and so are corn and beans."

Australia rain boosts wheat crop, some areas still dry
SYDNEY, Aug 17 (Reuters) - Rains in parts of Australia's New South Wales and Victoria are likely to boost prospects for this year's wheat crop, while the region that produces prime hard wheat is still dry, raising concerns for production of high-protein grains.
Analysts and traders said southern areas of New South Wales and Victoria have received widespread showers which are expected to improve yields for Australian prime and standard varieties of wheat.

US Harvest-Poor corn yields in South, eyes on Midwest
CHICAGO, Aug 17 (Reuters) - Corn yields are down sharply  in Arkansas, Louisiana and Tennessee from a year ago as hot, dry weather stressed the plants during pollination, crop specialists and grain merchants said on Wednesday as the southern U.S. harvest gained steam.
Although these are early indications of the harvest, they are raising concerns among food processors, livestock producers, and biofuel makers since a bumper crop is needed to replenish stocks, which the U.S. Agriculture Department forecast to be the lowest in 16 years next summer.

Ukraine Aug grain exports seen at 1.2 mln T-lobby
KIEV, Aug 17 (Reuters) - Ukrainian grain exports are unlikely to exceed 1.2 million tonnes in August, Ukraine's  Grain Confederation (UAC) industrial lobby said on Wednesday, down from exports of 1.3 million tonnes of grain in August 2010.
Ukraine exported 12.7 million tonnes of grain in the 2010/11 season and the government said the ex-Soviet state could export 21-23 million tonnes this season, building after the previous year's crop was depleted by adverse weather.

Dry areas of US Midwest to see rain by weekend
CHICAGO, Aug 17 (Reuters) - Dry areas of the U.S. Midwest corn and soybean growing region should see some rain soon, and temperatures over the next week will remain moderate, an agricultural meteorologist forecast Wednesday.
"The most important thing I've seen is recent models suggest rain in central Illinois of from 0.50 to 1.00 inch Friday through Sunday," said Drew Lerner, meteorologist with World Weather Inc.

Algeria 2011 grain crop estimated at 4.2 mln T: agmin
ALGIERS, Aug 17 (Reuters) - Algeria's grain harvest is expected to be 4.2 million tonnes this year, down from 4.5 million tonnes a year ago because of a drought in some areas, an agriculture ministry official told Reuters on Wednesday.
The final figures for the grain harvest are expected to be released by the end of this month, said the official, who did want to be identified because he is not authorised to speak to the media.

Indian states seek more rice exports-food min
NEW DELHI, Aug 17 (Reuters) - Several Indian states have asked the government to allow more rice exports, Food Minister K.V. Thomas said on Wednesday, as a first round of one million tonnes remains blocked by a court and stocks are still bulging.
Thomas, who took independent charge of the portfolio in July, said on Friday India could consider allowing an extra one million tonnes of rice exports at the next meeting of a panel of ministers, which can act without cabinet approval.

Corn Falls Most in More Than a Week as Rains in U.S. May Ease Crop Stress (Source: Bloomberg)
Corn and wheat fell the most in more than a week in Chicago on speculation rains will boost crop prospects in the U.S., the biggest exporter of the grains. The western Midwest will have increasing showers over the next few days, and that pattern may shift into the eastern Midwest during the weekend, helping support corn and soybeans, Telvent DTN Inc. said in a forecast yesterday. Rain may fall in northern regions of the winter-wheat belt, improving prospects for planting of the crop, the forecaster said. “Rains at this sort of critical crop development are always good,” Victor Thianpiriya, an agricultural commodity analyst at Australia & New Zealand Group Ltd., said by phone from Melbourne today.

Thai H1 2012 sugar premiums drop, output revised up
SINGAPORE, Aug 18 (Reuters) - Thai sugar premiums for next year's delivery fell more than half after Thailand raised its cane output forecast to a record in the next crushing season, giving consumers a chance to grab a bargain, dealers said on Thursday.
Thai Sugar Millers Corporation said the world's second-largest sugar exporter after Brazil could produce 100 million tonnes of sugar cane in 2011/12, which would yield around 10 million tonnes of sugar.

Asia Cocoa-Harvest yields poor beans; powder in demand
SINGAPORE, Aug 18 (Reuters) - The main cocoa harvest was underway in Indonesia's major growing island of Sulawesi but higher bean count indicated poorer quality, while extreme weather could damage the next crop later this year, dealers said on Thursday.
Slow shipments also suggested that grinders were cutting back on purchases to help ease excess stocks of butter, as ratios for the key ingredient for making chocolates were stuck at 9-year lows at 1.10 times London futures.

Thai 2011/12 sugar cane crop may hit 100 mln tonnes-millers
BANGKOK, Aug 18 (Reuters) - Thailand, the world's second-biggest sugar exporter, could produce record cane output of 100 million tonnes in its 2011/12 crop, equal to around 10 million tonnes of sugar, The Thai Sugar Miller Corporation said on Thursday.
That matched a cane forecast from the International Sugar Organization (ISO) early this week but was well above a forecast made by Thailand's Office of Cane and Sugar Board (OCSB) early in August of 92-95 million tonnes of cane, or around 9.2 million tonnes of sugar.

Brazil mid-crop cocoa output could yet surprise
SAO PAULO, Aug 17 (Reuters) - Forecasts for Brazil's mid-crop cocoa harvest may have been too conservative, analyst Thomas Hartmann said, after a dip in output from some regions proved just a blip and as Bahia's output held steady.
"As the weekly data start to accumulate, it becomes increasingly probable that the initial forecasts for the Temporao, both for Bahia and for other producing states, have been exceedingly pessimistic," Hartmann said in a crop update.

Brazil CS sugar output seen down at 32.3 mln T-JOB
SAO PAULO, Aug 17 (Reuters) - Sugar output from Brazil's main center-south cane region is seen at 32.3 million tonnes, revised down from a July forecast of 33.5 million tonnes, consultants JOB Economia said on Wednesday.
JOB's director, Julio Maria Borges, said he lowered his view for cane output in the region that accounts for 90 percent of Brazil's crop to 522 million tonnes, from 540 million in July.

Asia sugar demand growth opens door to small suppliers
LONDON, Aug 17 (Reuters) - Increasing demand for sugar by China, Indonesia and Malaysia in the next few years is likely to lead to a surge in production by small suppliers such as southern African and Latin American countries as the big exporters fail to keep pace.
Demand growth in sugar is being led by Asia, analysts say. Next year will see Russia's import needs surpassed by China, Indonesia, Malaysia and a number of large refineries in the Middle East.

Crude Oil Heads for Fourth Weekly Drop on Growth Downgrades, U.S. Job Cuts (Source: Bloomberg)
Oil declined in New York, heading for a fourth weekly drop, as investors bet fuel demand will falter amid signs of weaker growth in Europe, the U.S. and China, which account for about half of world crude consumption. Futures fell as much as 1.8 percent after Morgan Stanley cut its forecast for global growth in 2011 yesterday, citing an “insufficient” policy response to Europe’s sovereign debt crisis, weakened confidence and the prospect of fiscal tightening. Deutsche Bank AG reduced its growth outlook for China and U.S. jobless claims increased last week. “It doesn’t look good and perhaps there is more pain to come,” said Jonathan Barratt, a managing director of Commodity Broking Services Pty in Sydney, who predicts crude will average $100 a barrel this year. “Volatility will remain. There’s the potential for a double-dip recession in the U.S., the news out there is not good for crude.”

Oil Caps Year’s Third-Biggest Drop as Banks Cut Growth Outlook (Source: Bloomberg)
Crude oil capped the third-largest decline of 2011 as commodities fell around the world after Morgan Stanley and Deutsche Bank AG cut their forecasts for global economic expansion. Futures dropped 5.9 percent and stocks plunged after Morgan Stanley cited an “insufficient” policy response to Europe’s sovereign debt crisis, weakened confidence and the prospect of fiscal tightening. The declines accelerated after U.S. government data showed that jobless claims rose last week. “The most recent economic data is what’s guiding all asset classes,” said Adam Sieminski, chief energy economist at Deutsche Bank in Washington. “This means that just about everything but gold is falling right now.”

Japan July crude oil import volumes drop 11.2 pct
TOKYO, Aug 18 (Reuters) - The volume of Japan's customs-cleared crude oil imports fell 11.2 percent in July from a year earlier in its sharpest decline since April, when some refineries halted imports due to damage from a massive earthquake, Ministry of Finance data showed on Thursday.
The fall marked the first decline in three months, amid signs of recovery after the massive quake and tsunami on March 11 devastated the country's northeast coast, damaging infrastructure, disrupting supply chains and knocking the economy into recession.

Brent crude slips, below $111 on euro zone woes, firm dollar
SINGAPORE, Aug 18 (Reuters) - Brent crude fell, staying below $111 a barrel on Thursday as ongoing concerns over Europe's debt crisis and a firmer dollar drew investors away from riskier assets like oil and into the safe havens of gold and the Swiss franc.
"The market was disappointed when Swiss central bankers didn't propose a euro peg, it sent a signal that they are contented to let the franc appreciate and that led to a flight to safety, away from assets like oil," said Gordon Kwan, head of energy research at Mirae Asset Securities in Hong Kong.

Libyan rebels seize western oil refinery
ZAWIYAH, Libya, Aug 18 (Reuters) - Libyan rebels took control of an oil refinery in the western town of Zawiyah and blocked the main highway north to the capital on Thursday, further isolating Muammar Gaddafi's Tripoli stronghold.
Rebel advances in recent days have cut Gaddafi's forces off from their main supply routes following a months-long stalemate, putting the Libyan leader's 41-year rule under unprecedented pressure.

Global economic gloom to sink tanker market recovery hopes
SINGAPORE/LONDON, Aug 18 (Reuters) - The crude oil tanker market's hopes for a recovery next year could run aground as global economic turmoil stifles oil demand in the United States and Europe, denting prospects for a sector already battling a supply glut and a rate rout.
Strong global oil demand, driven mainly by China, has been the lone bright spot in the depressed dirty tanker market this year, although earnings for ship owners still slipped to record lows this month as supply of new ships outpaces demand growth.

Chile Collahuasi union threatens one-day stoppage
SANTIAGO, Aug 17 (Reuters) - The labor union at the world's No. 3 copper mine, Chile's Collahuasi, threatened on Wednesday to stage a one-day stoppage on Sept. 2 if the mine's operator does not hire back workers fired after a previous disruption.
Collahuasi, jointly owned by global miners Xstrata  and Anglo American , fired six workers after a 24-hour partial stoppage in late July that came amid a rash of labor unrest in the world's top copper producer.
UK Farmland Selling At Record In 1H On High Food Prices - RICS
Surging food prices pushed the cost of U.K. farmland to a record high in the first half 2011, according to a survey by the Royal Institute of Chartered Surveyors, or RICS. The average cost of an acre [0.4 hectares] of bare land across the U.K. jumped to GBP6,115, up 4.6% from GBP5,846 at the end of 2010--the second consecutive six month period of record prices and the fourth straight increase for a six-month period. Yet while land values have already more than doubled in the past five years, the London-based organization said it expects prices to rise even further as farmers look to cash in on high commodity prices. Wheat plantings in England rose 1.6% to 1.82 million hectares and oilseed rape plantings jumped 8% to a record high this year as farmers expanded acreage in response to high prices, according to data from the U.K.'s farm ministry.
"With commodity prices still very high, many commercial farmers appear more keen to expand their businesses rather than sell their land," said RICS spokeswoman Sue Steer. "This can only lead to even higher prices." Arable land appreciated by 4.9% an acre and pastures by 4.2% an acre since the end of last year, RICS said. Prices of farmland that includes housing rose 5.9% in the six months to GBP7,479/acre.

METALS-Copper prices sag, market confidence crumbles
LONDON, Aug 18 (Reuters) - Copper prices sagged on Thursday as the euro zone debt crisis and worries about economic slowdown in top consumer China reinforced gloomy growth and demand prospects, while a higher dollar also undermined sentiment.
Benchmark copper  was trading at $8,872 a tonne at 0941 GMT from $8,970 a tonne at the close on Wednesday. The metal used in power and construction earlier on Thursday hit a session low of $8,854.50 a tonne.

PRECIOUS-Gold rises towards record high, unease deepens
LONDON, Aug 18 (Reuters) - Gold rallied back towards record highs above $1,800 an ounce on Thursday, driven by unease over the lack of a solution to the European debt crisis and sluggish growth in the developed world which has shaken investor confidence in stocks, bonds and hard currencies.
Prices have climbed to within $5 of last week's record high of $1,813.79 an ounce.

Spot Gold, Gold Futures Advance to Records on Global Economic Concern (Source: Bloomberg)
Gold for immediate delivery gained as much as 0.4 percent to a record $1,831.60 an ounce. December- delivery futures rose as much as 0.7 percent to an all-time high of $1,834.40 an ounce.

Gold and platinum tussle for top spot
SINGAPORE/LONDON, Aug 17 (Reuters) - Spot platinum headed for a seventh consecutive session of gains on Wednesday, after buying interest was triggered last week when its value relative to gold dipped to a discount for the first time since the 2008 financial crisis.
The spread between spot platinum and gold prices hit a discount of $31 an ounce last week, its lowest in nearly 26 years, as economic concerns boosted the safe-haven appeal of gold but weighed on industrial metal platinum.

20110819 0956 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures end lower, driven down by board based selling attributed to global economic worries. The uncertainty facing economic growth in the U.S. and Europe promoted a theme of traders reducing risk exposure, analysts say. However, soybeans held up well in the face heavy losses in equities, crude oil and a spike in the U.S. dollar. The soybean strength was a reflection of crop uncertainty, and ongoing concerns about the longer range view of the balance between supply and demand amid the threat of smaller U.S. output, analysts add. CBOT Nov soy finish down 5 3/4c or 0.4% at $13.61/bushel.

Soybean Meal/Oil (Source: CME)
Soy product futures fall with soybeans, but solid export demand offsets negative influence from macro markets. The uncertainty of new crop soybean production provided underlying price support, with soyoil futures drawing strength from a larger than expected amount of soyoil sold for export in the previous week, analysts say. Nevertheless, CBOT Dec soyoil end down 0.41c at 55.83 cents/pound, and Dec soymeal drop $1.70 to $359.40/short ton.

Palm oil flat as global economy weighs, output dip
JAKARTA, Aug 18 (Reuters) - Malaysian palm oil futures traded little changed  as expectations of higher demand and lower output were offset by lingering worries about global economic growth.
"The market is quiet today and in a tight range," said a Kuala Lumpur-based trader. "People are looking for new developments before it can move."