Tuesday, September 6, 2011

20110906 1807 FCPO EOD Daily Chart Study.


FCPO closed : 2985, changed : -33 points, volume : higher.
Bollinger band reading : side way range bound little downside biased.
MACD Histrogram : weakening, buyer and seller battling.
Support : 2970, 2930, 2900, 2850 level.
Resistance : 3020, 3050, 3070, 3100 level.
Comment :
FCPO closed recorded loss with improved volume participation while overnight off for Labor day and currently trading lower while crude oil continue to dive deeper.
Concern over slower demand due to weakening and uncertain global economy development lead most commodities price to trade lower except for gold.
Daily chart formed a down doji bar candle closed below middle Bollinger band level after market opened gap down, dipping lower tested near support level before recovering upward closing the down gap and eased downward to closed near the low of the day.
Chart reading remained suggesting a side way range bound little downside biased market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110906 1739 FKLI EOD Daily Chart Study.


FKLI closed : 1448, changed : -8 points, volume : higher.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : recovering, seller taking profit.
Support : 1445, 1425, 1405, 1395 level.
Resistance : 1458, 1470, 1485, 1500 level.
Comment :
FKLI closed recorded loss with better volume transacted doing 6 points discount compare to cash market that ended weaker. Overnight U.S. market closed for Labor Day holiday and Asia markets ended mixed while European markets currently rebounding little higher.
Uncertainty over European debt crisis and austerity plan lead global markets to trade between gain and losses. News wise, Singapore’s finance minister commented that a global recession was more likely than not as the U.S. and European economies are at "stall" speed.
Back home, Malaysia FKLI and KLCI traded in red as overall market sentiment remained weak after corporate announcement from Bandaraya Development Bhd and DXN Holdings Bhd privatisation plan failed to push market higher.
Daily chart formed an up doji bar candle with long upper shadow positioned near lower Bollinger band level after market opened lower, traded side way range bound followed by after lunch session recovery lifted price higher recording gain before plunge lower again to closed near the low of the day.
Technical study still calling for a correction range bound downside biased market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

20110905 1709 Regional Markets EOD Daily Chart Study.

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

20110906 1525 Global Market & Commodities Related News.

Asian shares fall amid euro zone, banking worries
SINGAPORE, Sept 6 (Reuters) - Asian shares and the euro fell on fears that Europe's sovereign debt troubles are worsening and could trigger a second, full-blown banking crisis.
"It's the European disease that is infecting markets all around the world at the moment," said Michael Heffernan, senior client adviser and strategist at Austock Group in Australia.  

JAKARTA, Sept 6 (Reuters) - Crude palm oil (CPO) prices are seen averaging about $1,000-$1,100 a tonne this year and in 2012, Fadhil Hasan, executive director of the Indonesian Palm Oil Association (Gapki), said on Tuesday. At 0351 GMT, the benchmark November crude palm oil contract traded at 2,988 Malaysian ringgit ($1,003) a tonne from 3,018 ringgit at the close on Monday. [POI/]  ($1 = 2.977 ringgit)  

New frontier palm oil players look to RSPO
JAKARTA, Sept 5 (Reuters) - African and South American palm oil players are flocking to join the Roundtable on Sustainable Palm Oil (RSPO), highlighting a growing trend of the industry's rapid expansion outside main producing region Southeast Asia, the body's head said on Monday.
The industry group sees countries such as Gabon, Nigeria and Brazil ramping up production in coming years, as the land expansion of plantations in Malaysia has reached a natural ceiling and Indonesian growth has been slowed by a freshly inked two-year moratorium on forest clearance.

US corn, wheat slide over 1 pct on Europe worries
SINGAPORE, Sept 6 (Reuters) - U.S. corn and wheat futures slid around 1 percent while soybeans lost 1.4 percent amid fears that worsening Europe's sovereign debt troubles could trigger a full-blown banking crisis.
"Losses in the Chicago grain and oilseed complex are following the risk activity that we saw in London and European markets," said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia.

Vietnam Sept coffee exports seen up to 70,000
HANOI, Sept 6 (Reuters) - Vietnam is expected to export between 60,000 tonnes and 70,000 tonnes, or 1 million to 1.17 million 60-kg bags, of coffee this month, from 58,000 tonnes shipped in the same month last year, traders said on Tuesday.
"Stocks are still available in several warehouse and there are pending contracts, so the export volume would be higher than last month," a trader in Ho Chi Minh City said.

Drought continues in China's southwest sugar area  
BEIJING, Sept 6 (Reuters) - China's agriculture ministry said some 3.23 million hectares of crops were suffering from ongoing drought conditions in the country's southwest, the main sugar-growing region, with no letup in the dry, hot weather.
The ministry said the damage to grains was limited as of Sept. 5 and affected northern parts of the Guangxi region -- which accounts for 60 percent of China's sugar output -- eastern Yunnan province, most areas of Guizhou and parts of Chongqing and Sichuan.

French maize crop seen set for record yield
PARIS, Sept 5 (Reuters) - The maize grain harvest in France is expected to produce a record average yield of around 10 tonnes per hectare, technical institute Arvalis said on Monday.
High expected yields reflected early sowing and regular rain during the second half of the growing season, Jean-Paul Renoux, Arvalis' head of maize, told Reuters.

Ivorian cocoa arrivals seen 1.4 mln T by Sept. 4
ABIDJAN, Sept 5 (Reuters) - - Cocoa arrivals to ports in top grower Ivory Coast reached 1,414,000 tonnes by Sept. 4 since the start of the season in October, according to a consensus of exporter estimates obtained by Reuters on Monday, up from 1,148,251 tonnes during the same period a year ago.
Some 20,070 tonnes reached the ports of San Pedro and Abidjan in the week ended Sept. 4, adding to the 1,393,930 tonnes that
Ivorian cocoa regulator BCC said had reached the ports between October and Aug. 28.

Ghana cocoa purchases hit 1.01 mln T - Cocobod
ACCRA, Sept 5 (Reuters) - Cocoa purchases declared by private buyers to Ghana's industry regulator Cocobod hit 1,009,782 tonnes by Aug. 25 since the start of the season in October, according to data from Cocobod obtained by Reuters on Monday.
The figure includes 92,972 tonnes registered during the No. 2 world cocoa grower's light crop, a period during which beans are sold to local grinders at a discount instead of being exported.

Britain's wheat crop quality seen above average
LONDON, Sept 5 (Reuters) - Initial results suggest Britain's wheat crop is better quality than last season and the three-year average, the Home-Grown Cereals Authority (HGCA) said on Monday issuing provisional results of a cereal quality survey.
The results from 18,000 wheat samples collected up to August 31 show specific weights, Hagberg falling numbers and protein content all above last season.

Czarnikow sees sugar surplus 4-5 mln t 2011/12
LONDON, Sept 5 (Reuters) - Trade house Czarnikow's head of research Toby Cohen on Monday forecast a global sugar surplus of around 4-5 million tonnes in 2011/12.
"We're roughly in line with where most of the market is coming in at the moment, which is around a 4-5 million tonne surplus," Cohen told Insider television in an interview, coinciding with Czarnikow's 150th anniversary celebrations.

Japan govt to up emergency gasoline reserves - Nikkei
Sept 6 (Reuters) - Japan's government will boost its emergency gasoline reserves to speed up distribution after disasters, business daily Nikkei reported.
The stockpile is meant to buffer disruptions in oil imports resulting from problems like the turmoil in the Middle East.

UK gas boosted by gas diversions to Germany
LONDON, Sept 5 (Reuters) - British prompt gas prices gained on Monday, reversing earlier losses and boosted by concerns that a planned resumption in Norway-Germany gas flows overnight will cut supplies to the UK, while forward prices made slight gains.
The return of the Norway-Germany Europipe 1 gas link on Tuesday, following a 12-day outage period, will see less gas delivered to UK markets, traders said.

Brent steady at above $110; U.S. stimulus eyed
SINGAPORE, Sept 6 (Reuters) - Brent crude was steady at above $110 a barrel, as the market weighed expectations for further economic stimulus in the U.S. against a worsening euro zone debt crisis.
"The market is looking for fresh stimulus coming from Obama when he makes his jobs speech on Thursday, and also when the Fed meets on September 20th," said Gordon Kwan, head of energy research at Mirae Securities in Hong Kong.

Copper down on Europe woes, but strikes may support prices
SHANGHAI, Sept 6 (Reuters) - Copper fell by as much as 0.7 percent, hit by a slump in equities triggered by fresh fears about the euro zone's sovereign debt crisis, but supply disruptions from planned mining strikes could shore up prices.
"It looks like today's influence is mostly due to what is happening in the euro zone as there are no new developments in China or in the U.S.," said Dongzheng futures trader Du Xiao Hua.

Gold hovers around $1,900 on growth, Europe woes
SINGAPORE, Sept 6 (Reuters) - Spot gold hovered around $1,900 an ounce, as renewed fears over the euro zone's debt crisis and concerns about stalled global growth drove investors to seek safety in bullion.
"If we get a negative reading, it will just reinforce concerns about a global recession and possibility of some form of stimulus from the Fed (U.S. Federal Reserve) down the road," said Ong Yi Ling, an analyst at Phillip Futures.

METALS-Copper down on Europe woes, but strikes may support prices
SHANGHAI, Sept 6 (Reuters) - Copper fell by as much as 0.7 percent, hit by a slump in equities triggered by fresh fears about the euro zone's sovereign debt crisis, but supply disruptions from planned mining strikes could shore up prices.
"It looks like today's influence is mostly due to what is happening in the euro zone as there are no new developments in China or in the U.S.," said Dongzheng futures trader Du Xiao Hua.

PRECIOUS-Gold hovers around $1,900 on growth, Europe woes
SINGAPORE, Sept 6 (Reuters) - Spot gold hovered around $1,900 an ounce, as renewed fears over the euro zone's debt crisis and concerns about stalled global growth drove investors to seek safety in bullion.
"If we get a negative reading, it will just reinforce concerns about a global recession and possibility of some form of stimulus from the Fed (U.S. Federal Reserve) down the road," said Ong Yi Ling, an analyst at Phillip Futures.

FOREX-Euro hits 7-wk low, charts point to further drops
TOKYO/SYDNEY, Sept 6 (Reuters) - The euro hit a seven week low as the euro zone debt crisis deepened overnight, hovering right above more key chart support levels that if breached could lead to a sharper sell-off in the single currency.
"I don't think the euro can eke out even modest gains today. The euro zone crisis has been deepening and it's very hard to find any potential for a positive surprise in the near term," said Koji Fukaya, director of global foreign exchange research at Credit Suisse Securities in Tokyo.

20110906 1155 Global Market & Commodities Related News.

Asia Stocks, Euro Drop as Treasury 10Y Yield Falls
Asian stocks fell, Treasury 10-year yields sank to a record, the euro weakened for a sixth day and oil slumped on speculation Europe’s debt crisis is worsening. The MSCI Asia Pacific Index lost 0.8 percent as of 9:24 a.m. in Tokyo, set for a third day of declines. Standard & Poor’s 500 Index futures sank 2.6 percent, while Treasury 10-year yields reached a low of 1.92 percent. U.S. markets were closed for a holiday yesterday. The euro slid 0.2 percent to $1.4072 and fell to 108.24 yen. Crude dropped 3.2 percent in New York, while wheat, corn and soybeans all retreated by more than 1 percent. Financial shares led losses in Asia, following a slump in bank stocks in Europe yesterday as the cost of bank default insurance surged to records. Finance ministers from Germany, Finland and the Netherlands will meet today to discuss a Finnish demand for collateral in a bailout for Greece, while the Italian Senate will debate the nation’s austerity plan amid a strike called by the nation’s biggest union.

GLOBAL MARKETS-Asian shares fall amid euro zone, banking worries
SINGAPORE, Sept 6 (Reuters) - Asian shares fell and the euro slipped on Tuesday amid fears that Europe's sovereign debt troubles are worsening and could trigger a second full-blown banking crisis.
European stocks tumbled 4 percent on Monday, with financial shares falling to their lowest in more than 2 years. Wall Street was closed on Monday for a holiday, but S&P 500 futures   were down 2.4 percent on Tuesday.

Stocks, Italian bonds drop on Europe debt concern
Stocks fell, Italian bonds dropped for an 11th day and the cost of government and bank default insurance rose to records on concern Europe’s debt crisis will worsen. The euro weakened, while the dollar and gold gained. The MSCI All-Country World Index sank 2%. Banks led the Stoxx Europe 600 Index down 4.1% while Italy’s 10-year bond yield rose 27 basis points. The DAX Index fell 5.3%. The German bund yield fell to a record low of 1.84% while rates on two-year Greek debt exceeded 50% for the first time. German Chancellor Angela Merkel’s party lost weekend elections in her home state, stoking concern opposition is growing to bailouts for debt-saddled European nations. US markets were closed for the Labour Day celebrations. (Bloomberg)

Brent crude rises $1 to $111.08
SINGAPORE, Sep 6 (Reuters) - Brent crude futures  rose over $1 a barrel on Tuesday, rebounding from sharp falls a day earlier.  
Brent crude  for October was up $1.01 to $111.09 by 0155 GMT, after settling $2.25 lower at $110.08 on Monday.

Japan govt to up emergency gasoline reserves - Nikkei
Sept 6 (Reuters) - Japan's government will boost its emergency gasoline reserves to speed up distribution after disasters, business daily Nikkei reported.
The stockpile is meant to buffer disruptions in oil imports resulting from problems like the turmoil in the Middle East.

Euro Coal-Prices dip 50 cts, more S.Africa bids seen
LONDON, Sept 5 (Reuters) - European prompt physical coal prices fell slightly by around 50 U.S. cents a tonne on Monday despite continued buying by one major utility and more activity in FOB Richards Bay trade.
"It's very slightly softer today, a matter of cents but the market's steady and could creep up a bit higher to the top of the range, maybe to $130 a tonne," one bank trader said.

20110906 1046 Malaysia Corporate Related News.

Major Bandar Raya shareholder offers to buy assets
Ambang Sehati SB, the major shareholder of Bandar Raya Developments (BRDB) with a 18.8% stake, has offered to buy some of the developer’s assets, including Bangsar Shopping Centre, Menara BRDB in Jalan Maarof, CapSquare Centre and Permas Jusco Mall in Johor Bahru. The price will be determined later. Ambang Sehati SB believes the proposed disposal will enable BRDB to monetize these assets and achieve a more efficient utilization of its capital. The entire assets, according to BRDB’s annual report, have a carrying value of RM942.4m, and were revalued last year. (Financial Daily)

Offer to privatise DXN at RM1.75 per share
DXN’s major shareholders have issued a notice of conditional takeover to acquire all the remaining shares in DXN they do not own at RM1.75 per share, a 23.2% premium to yesterday’s closing price of RM1.42. The offer for DXN, a multilevel marketing company that distributes lingzhi-based and other herbal health products, is subject to a 90% acceptance condition. The joint offerors do not intend to maintain DXN’s listing status should the 90% acceptance condition be achieved. The joint offerors currently hold a 66.6% stake. (Financial Daily)

Dijaya acquires 80 ha in Kajang for RM228m
Dijaya has acquired 80 ha of freehold development land in Kajang from Taiyo Resort (KL) for RM228m, or RM26.40 per sq ft. It will be turned into a mixed development with expected GDV of RM2bn. The five parcels of land are currently occupied by the Kajang Hill Golf Club. The planned development, named Tropicana Kajang, will comprise houses, condominiums, apartments and shop offices. The company said that the proposed Kajang-Sungai Buloh MRT project will enhance the investment potential in the vicinity of Kajang. The acquisition will be funded by internally generated funds and bank borrowings. (Financial Daily)

Dialog Group Bhd : Indonesian unit issues new shares
Dialog Group Bhd said its Indonesian subsidiary PT Dialog Sistemindo had increased its issued and paid-up share capital to US$400,000, or RM1.2mil (from US$340,000, or RM1.0mil), by issuing 60 new shares of US$1,000 (RM2,970) each at par for cash. As a result of the enlarged issued and paid-up capital of PT Dialog, the group’s equity interest in its unit has been reduced to 90.0% (from 95.0%).  The balance 10.0% stake is held by one Edison Sinaga. – Business Times

CIMB Group Holdings Bhd : CIMB Islamic loans to boost CIMB this year
According to CIMB Islamic Bank Bhd executive director and CEO Badlisyah Abdul Ghani, CIMB Islamic expects an increase in its financing contribution to the CIMB group to between 15.0% to19.0% this financial year, up from 13.8% currently. He said that both the conventional bank and the Islamic bank are growing but they expect the share of loan book by the Islamic bank to grow bigger but not to the extent that it will be growing too fast. – The Edge

Malaysia Marine and Heavy Engineering Holdings Bhd : Buy of Sime’s yard depends on lease extension
Malaysia Marine and Heavy Engineering Holdings Bhd’s (MMHE) RM393.5mil acquisition of the Pasir Gudang fabrication yard depends on the tenure of the land leases being extended by 34 years. The company also said upon completion of the deal, MMHE will be the largest fabricator in the country with its yard size increasing from 372 acres to 488 acres. In tandem with the increase in yard size, the transaction is also expected to increase capacity to 69,700 metric tonnes per year production. In reply to queries by Bursa Malaysia on its proposed purchase of the fabrication yard that is scheduled to be completed by March 31, 2012, MMHE in substantiating its proposed purchase of the Pasir Gudang yard from Sime Darby Engineering Sdn Bhd (SDE) stated that the facility is in close proximity to MMHE’s existing yard and is equipped with infrastructure that can support higher-end fabrication works. In the event that the land leases fail to receive the relevant approvals from Johor Port Authority and Johor Port by March 16, 2012 (the cut-off date for completion of the transaction), the board of MMHE will then have to decide on its next course of action and an announcement will be made in due course. – The Edge

20110906 0932 Global Market Related News.

GLOBAL MARKETS - Stocks, euro slide on economy, debt fears
LONDON, Sept 5 (Reuters) - Stocks fell on Monday and the euro hit a three-week low versus the dollar as worries about Greek and Italian fiscal deficits and a regional election rout for Germany's ruling party cast more doubt on the euro zone's ability to solve its debt crisis.  
"Not a great start to the week. There is a lot going on for banks, especially in the light of a low-growth environment and the backdrop in the euro zone not improving," said Mike Lenhoff, chief strategist at Brewin Dolphin.

Stocks, euro slide on recession worries
LONDON, Sept 5 (Reuters) - World stocks fell to a one-week low and the euro hit a three-week trough against the dollar as investors worried the U.S. jobs market may be beyond easy repair and Europe faced a series of risks that would reignite its debt crisis.
"Jobs have been front and centre of this whole recovery debate. The problem is that there simply hasn't been any meaningful jobs growth, which is precisely why markets are so worried about slipping back into recession. The authorities have thrown a lot of stimulus at the problem and to date, it's basically done nothing," said Ben Potter, strategist at IG Markets.

Economies in Peril Proving Voters Aren’t Careful About What Is Wished For (Source: Bloomberg)
The world economy is paying a price for democracy. As recoveries from the U.S. to Europe lose momentum, policy makers are running into gridlock formed by the politicking and ideological preferences of governments that voters have chosen. Republicans and Democrats in the U.S. squabble about how to restrain the budget deficit and spur job growth, while officials throughout the euro zone differ over how best to safeguard the future of the single currency. The result is what JPMorgan Chase & Co. economist Bruce Kasman brands a “crisis of competency” as investors question the ability of authorities to act fast enough to avoid repeat recessions. JPMorgan, Citicorp Inc., UBS AG and Societe Generale SA all recently cited policy paralysis in downgrading estimates for global recovery.
“There is a gap between market horizons and political horizons, and the markets don’t like that,” said Michala Marcussen, London-based head of economics at Societe Generale, who last month cut her forecast for growth worldwide in 2012 to 3.9 percent from 4.6 percent. “Political uncertainty is at one of its highest points in 20 years.”

Asian Stocks Slide on Europe Debt Concern (Source: Bloomberg)
Asian stocks fell, with the regional benchmark index set for its biggest three-day decline in two weeks, amid concern that Europe will be unable to control its sovereign-debt crisis, denting the outlook for the global economy. Canon Inc., the world’s biggest camera maker which counts Europe as its biggest market for sales, slid 0.9 percent in Tokyo. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest lender by market value, declined 2.1 percent after the cost of insuring against default on European sovereign and financial debt surged to records. Commonwealth Bank of Australia, the nation’s largest lender, fell 1 percent in Sydney. The MSCI Asia Pacific Index dropped 0.8 percent to 119.82 as of 9:18 a.m. in Tokyo, headed for its third straight day of declines. Almost four stocks fell for each that rose on the gauge.
The measure slumped 8.6 percent last month, the most since May 2010, amid concern global economic growth is slowing as Europe’s sovereign debt crisis spreads and after Standard & Poor’s cut the U.S. credit rating.

Treasuries Rise, Send U.S. 10-Year Yields to Record Low, as Shares Decline (Source: Bloomberg)
Treasuries surged, pushing 10-year yields to a record low, as a rout in stocks around the world increased demand for the relative safety of government debt. Demand for longer maturities narrowed the extra yield that investors get for buying 10-year notes instead of two-year debt to 1.71 percentage points, the least since March 2009. Asian stocks fell for a third day on concerns that support for bailing out Europe’s indebted nations may fade and after data last week showed the U.S. jobs market stalled in August. “Treasury yields and equities can go down more,” said Yoshiyuki Suzuki, the Tokyo-based head of fixed income at Fukoku Mutual Life Insurance Co., which has the equivalent of $71.5 billion in assets. “People have a fear” of declines in financial markets that is increasing appetite for the most secure investments.

Stagnant August Hiring in U.S. May Signal Renewed Recession (Source: Bloomberg)
The U.S. may be on the cusp of a recession for the first time in more than two years. Stagnant payrolls in August reported last week added to data over the past month showing the economy is faltering, including slowing manufacturing, plunging consumer confidence, falling home values and lower bond yields and stock prices. “At this stage of the typical expansion we expect above- average growth and instead we are barely seeing any growth at all,” said James Hamilton, an economics professor at the University of California, San Diego, who has advised Federal Reserve banks and studied what tips the U.S. into downturns. “We have to be more worried. Overall, the economy is in a delicate position and another shock could send us down.”

Richest Americans Can Help Fix Social Security: Perry Golkin (Source: Bloomberg)
The debate on Social Security reform has reached an ideological stalemate, pitting collective responsibility to provide for the less fortunate against an individual’s right to one’s earnings and entitlements. There is a way of dealing, at least partially, with the funding shortfall for Social Security that draws on the country’s best traditions. That would be to encourage a voluntary waiver of benefits by affluent Americans. To avoid the cynicism of those expecting government to waste the funds, all waived benefits would be deposited into a trust fund and passed on to future generations of retirees. The mechanism for making this contribution would be simple and inexpensive, a single line on Internal Revenue Service Form 1040, annually indicating a waiver of next year’s benefits.

China HSBC August Services PMI Drops to Record Low as New Business Slows (Source: Bloomberg)
A Chinese services index fell to a record low in August as new business growth moderated, adding to evidence the economy is slowing after the government raised interest rates, curbed lending and limited property purchases. A purchasing managers’ index dropped to 50.6 from 53.5 in July, according to a statement issued by HSBC Holdings Plc and Markit Economics. The reading, near the borderline of 50 that marks expansion or contraction, was the lowest since the series began in November 2005, HSBC said. The data “reflects the effect of property and credit tightening measures,” Qu Hongbin, chief China economist at HSBC in Hong Kong, said in the statement. Tightening is probably approaching an end and consumer spending is resilient, “suggesting China’s service sector is likely to see a moderation in growth and not a meltdown.”

Japanese Stocks Fall for Third Day on Concern Europe Debt Crisis Worsening (Source: Bloomberg)
Japanese stocks for a third day fell as concern that Europe’s debt crisis is worsening saps demand for riskier assets. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest lender, fell 1.8 percent after the cost of insuring against default on European sovereign and financial debt surged to records. Inpex Corp. (1605), the country’s No. 1 energy explorer, dropped 2 percent after the price of crude oil slid. Toyota Motor Corp. (7203) declined 0.4 percent as Kyodo News reported the carmaker will cease Japanese exports of its Camry sedan to North America after announcing a redesign of the model. The Nikkei 225 (NKY) Stock Average fell 1.1 percent to 8,685.16 as of 9:05 a.m. in Tokyo. The broader Topix index dropped 0.8 percent to 749.95.

South Korea’s Economy Grows More Than Initially Estimated on Construction (Source: Bloomberg)
South Korea’s economy expanded more than initially estimated in the second quarter as spending on public construction projects was higher than expected. Gross domestic product grew 0.9 percent over the three months through June from the first quarter, compared with a July estimate of 0.8 percent, the Bank of Korea said in Seoul today. The economy expanded 3.4 percent from a year earlier, matching the July estimate. The Bank of Korea will decide on Sept. 8 whether to raise interest rates for the fourth time this year as it grapples with risks from accelerating inflation and a global economic slowdown. Consumer prices climbed 5.3 percent in August, the fastest pace in three years and above the central bank’s 4 percent ceiling.

Services Expand at Slowest Pace in Two Years in August as Costs Increase (Source: Bloomberg)
India’s services industry grew at the slowest pace in more than two years in August after the central bank’s record interest-rate increases and a weakening global economy restrained consumer demand. The Purchasing Managers’ Index fell to 53.8 last month from 58.2 in July, HSBC Holdings Plc and Markit Economics said in an e-mailed statement today. That’s the lowest level since June 2009. A reading above 50 indicates an expansion. Asia’s growth has slowed as a faltering recovery in the U.S. and Europe’s debt crisis hurt the region’s exports, complicating monetary policy for central banks still grappling with price pressures. India’s manufacturing grew at the slowest pace in 29 months in August, a report showed last week, while inflation has exceeded 9 percent for eight straight months even after 11 rate increases by the Reserve Bank of India since mid-March 2010.

Euro Declines Before German Factory Orders Report, Swiss Franc Advances (Source: Bloomberg)
The euro fell for a fifth day against the Swiss franc before a report forecast to show German factory orders declined in July, adding to concern that the debt crisis will curtail the region’s economic recovery. The 17-nation euro weakened to a one-month low versus the greenback before Finland’s Finance Minister Jutta Urpilainen meets today in Berlin with her German and Dutch counterparts to discuss a Finnish demand for collateral. The franc strengthened against all of its 16 most-traded peers on speculation Asian shares will slump after European stocks fell and before data that economists said will show U.S. service-sector growth slowed, boosting demand for the currency as a haven.
“The euro is being sold because of concern about Europe’s economic slowdown and its debt crisis,” said Kengo Suzuki, manager of the foreign-bond department in Tokyo at Mizuho Securities Co., a unit of Japan’s third-largest listed bank. “Stock drops boost risk aversion, triggering buying of haven currencies such as the Swiss franc, yen and dollar.”

Berlusconi Seeking Support for Budget as Union Protests Austerity Package (Source: Bloomberg)
Thousands of Italians will converge on Rome today to protest Prime Minister Silvio Berlusconi’s 45.5 billion-euro ($64 billion) austerity package after bond yields surged on concern that the government may backslide on the plan. The general strike called by CGIL, Italy’s biggest union, comes as lawmakers in Rome begin debating the package of spending cuts and tax increases passed by the government last month to shield the country from debt-crisis contagion. The Senate may approve the plan as soon as tomorrow. Passage by the upper house would pave the way for the Chamber of Deputies, where Berlusconi has a narrower majority, to give final approval. The price of the nation’s 10-year bond declined yesterday for an 11th day, pushing the yield to 5.57 percent, the highest since Aug. 5. Milan’s stock benchmark FTSE MIB Index (FTSEMIB) closed down 4.8 percent, with UniCredit SpA (UCG) and Intesa Sanpaolo SpA (ISP), Italy’s biggest banks, dropping 7.3 and 7 percent, respectively.

Finland Searches for Collateral Compromise as IMF Becomes Latest Detractor (Source: Bloomberg)
Finland is stepping up efforts to find a compromise with Europe on its collateral demands amid International Monetary Fund opposition to forcing Greece to give euro members extra security for new loans. “We will seek a solution together everyone can agree on and one that doesn’t hurt anyone,” Finland’s Prime Minister Jyrki Katainen told reporters today in Helsinki after meeting with European Union President Herman Van Rompuy. “We are seeking a solution as soon as possible.” Europe’s efforts to contain its debt crisis risk unraveling as individual nations’ demands for collateral, Greece’s deteriorating economic predicament and wavering commitment to austerity packages from euro members such as Italy throw any recovery in doubt.

ECB Financing to Portuguese Banks Increased to 46 Billion Euros in August (Source: Bloomberg)
The European Central Bank’s financing to Portuguese lenders rose for a second month in August as the debt crisis limited the banks’ ability to borrow. ECB financing increased to 46 billion euros ($65 billion) from 44.2 billion euros in July, the Lisbon-based Bank of Portugal said today on the BPStat portion of its website. ECB financing levels peaked at 49.1 billion euros in August 2010. Portugal in April became the third euro-area country to seek a bailout after Greece and Ireland. It will receive 78 billion euros under the agreement with the International Monetary Fund and the European Union. ECB President Jean-Claude Trichet on April 7 said the central bank “encouraged” Portugal to seek aid, adding that the country’s banks needed to reduce their reliance on ECB funding.

FOREX - Euro knocked by Greece, Italy debt concerns
LONDON, Sept 5 (Reuters) - The euro fell broadly on Monday, touching a three-week trough versus the dollar as worries about Greek and Italian public deficits and a regional election rout for Germany's ruling party cast more doubt on the euro zone's ability to tackle its debt crisis.
"The pressure will be for the euro to move lower given the news flow, but every time we move down to these levels we see (sovereign) rebalancing flows come in," said Richard Falkenhall, currency strategist at SEB in Stockholm.

20110906 0929 Global Commodities Related News.

Ukraine Jul-Aug grain exports 22 pct down y/y
KIEV, Sept 5 (Reuters) - Ukraine's grain exports totalled 1.8 million tonnes in July-August 2011, the first two months of the new 2011/12 season, or 22 percent less than in the same period in 2010, the Ukrainian Agrarian Confederation (UAC), said on Monday.
The local union of traders and producers said in a statement the volume had included about 1.0 million tonnes of barley, 700,000 of wheat and 100,000 of other cereals.

Dry weather starts to hamper Argentine wheat-gov't
BUENOS AIRES, Sept 2 (Reuters) - The wheat crop in parts of Argentina's top producing province is starting to show the impact of dry and chilly weather in recent weeks, the Agriculture Ministry said on Friday in a weekly report.
Argentina, a leading global wheat exporter, has yet to forecast 2011/12 output, but the U.S. Department of Agriculture (USDA) sees production dipping to 13.5 million tonnes from 15 million last season.

Heat adds more stress to U.S. Midwest crops
CHICAGO, Sept 2 (Reuters) - Hot weather in the U.S. Midwest late this week likely added further stress to the filling corn crop and late pod-setting soybeans, an agricultural meteorologist said on Friday.
"It was hot the past two days, it was up to 100 Fahrenheit in central and southern Illinois so there's no doubt there was some late stress on crops," said John Dee, meteorologist for Global Weather Monitoring.

Share of milling wheat in Ukraine crop at 40-45 pct
KIEV, Sept 2 (Reuters) - The share of milling wheat in Ukraine's 2011 wheat harvest as at between 40 and 45 percent, down from the last year 55 percent, analyst UkrAgroConsult said in a report.
Ukraine's Farm Ministry last month said the share of milling wheat had reached 70 percent as of Aug 18 compared to about 60 percent a month earlier. The ministry gave no explanation for the change in the grain quality.

Corn, Soybeans Seen Advancing as Adverse Weather Threatens U.S. Yields (Source: Bloomberg)
Corn and soybeans may rise this week on speculation that a government report on Sept. 12 will forecast smaller U.S. crops after a heat wave in July and dry weather in August eroded yield prospects. Twenty-two of 29 traders and analysts surveyed from Tokyo to Chicago on Sept. 2 forecast that corn will rise for a fifth time in six weeks, and 23 respondents said soybeans will gain for a fourth straight week. On the Chicago Board of Trade last week, corn futures for December delivery fell 0.9 percent to $7.60 a bushel. Soybean futures for November delivery rose 1.6 percent to $14.4575 a bushel, after prices reached the highest since July 2008.

Rice rally losing steam on plentiful supply
SINGAPORE, Sept 2 (Reuters) - Ample global rice stocks and buyers' reluctance to wade into a market many see as overpriced will put the brakes on a rally that saw the staple at 1-1/2 year highs this week and raised concerns about food inflation in Asia.
Speculation over aggressive intervention by the new government in Thailand, the world's biggest exporter, has pushed the benchmark white rice  to $615 a tonne, the highest since December 2009, even though demand has remained thin with top importers largely covered.

Global meeting to push for India sugar reforms
NEW DELHI, Sept 2 (Reuters) - Reform of India's tightly controlled sugar sector will top the agenda of an international conference kicking off on Sept. 5, as traders and analysts call for changes to allow the country to become a regular exporter, competing with top producer Brazil.
The New Delhi government, keen to ensure cheap availability of the sweetener and to restrain high food inflation, currently sets the price mills must pay to farmers and buys 20 percent of their output at a big discount for its welfare schemes.

Canada wheat, canola stocks shrink - trade
WINNIPEG, Manitoba, Sept 2 (Reuters) - Canada's stocks of wheat and canola shrank to multi-year lows as of July 31, the result of last year's disappointing harvest and steady demand, according to 14 traders and analysts whom Reuters surveyed.
Statistics Canada will release on Sept. 7 its estimates of crop stocks as of July 31, which is the end of the 2010/11 marketing year.

Robusta coffee slips, Vietnam crop weighs
LONDON, Sept 5 (Reuters) - Robusta coffee edged lower, under pressure from the imminent large crop in Vietnam, while white sugar was steady. U.S. commodity markets were shut Monday for Labor Day.
Brazil plans to slash tax credits on coffee shipments which exporters say distort competition, potentially raising the cost of the beans it sells abroad, government and industry sources said on Friday.

Mauritius' Omnicane to build Kenya sugar factory - report
PORT LOUIS, Sept 5 (Reuters) - Leading Mauritian sugar producer Omnicane  is planning to develop a $180 million sugar factory in Kenya to fill a production gap, L'Express newspaper reported on Monday.
Omnicane chief executive officer Jacques d'Unienville said the sugar factory will be situated in the south of Kenya's port city of Mombasa and will initially access 17,000 acres of sugar cane.

Indonesia's Aug Sumatra coffee exports fall 31 pct y/y
BANDAR LAMPUNG, Sept 5 (Reuters) - Indonesia's robusta coffee bean exports from the main growing area in southern Sumatra fell 31 percent to 17,938.38 tonnes from the same month a year ago, as stock levels decreased, government trade data showed on Monday.
Indonesia is the world's fourth largest coffee producer after Brazil, Colombia and Vietnam, and the world's number two robusta coffee producer after Vietnam.

Brazil hillside coffee could see frost early Saturday
BRASILIA, Sept 2 (Reuters) - A high altitude zone in Brazil's southeastern coffee belt could see patches of frost by dawn on Saturday, weather forecaster Somar said on Friday, but any freeze would likely be patchy and affect a small area.
Meteorologist Cassia Beu told Reuters the area most at risk was the Pocos de Caldas area of top coffee state Minas Gerais, usually the coolest part of the coffee belt in the world's top grower. Temperatures there could fall to 0 Celsius.

Little improvement seen as Cuban coffee harvest begins
HAVANA, Sept 2 (Reuters) - The Cuban coffee harvest has begun in eastern Cuba, accountable for 85 percent of production, with little indication output will significantly improve over last season's dismal 6,000 tonnes of semi-processed beans.
"Santiago de Cuba, the biggest coffee producer in the country, began this year's harvest today," official Radio Rebelde reported on Friday, without providing further details.

Sugar crop in key India state seen at record despite rains
MUMBAI, Sept 2 (Reuters) - Recent heavy rainfall in India's top sugar producing Maharashtra state will not hurt the cane crop, which is still expected to yield a record 9.3 million tonnes of sugar, a senior state government official said on Friday.
"Rainfall at this stage is beneficial for the crop's vegetative growth. We are expecting better cane yields," Anil Bansode, joint director at the state's sugar commissioner's office, told Reuters on Friday.

Cocoa Declines to $3,144 a Ton in London Trading, Erasing Earlier Advance (Source: Bloomberg)
Cocoa for December delivery fell 2 pounds, or 0.1 percent, to 1,949 pounds on NYSE Liffe in London by 12:40 p.m. local time, erasing gains earlier today of as much as 0.3 percent.

Coffee Peaking as Cargoes Carrying Brazilian Beans Surge: Freight Markets (Source: Bloomberg)
The rally that drove arabica coffee prices up 50 percent in a year may be ending as record production in Brazil, the highest output in a decade in Central America and a rebound in Colombia’s crop boost exports. Brazil, the world’s largest grower, may produce up to 3.78 million metric tons (63 million bags) of beans next year, a jump of as much as 37 percent, London-based broker Marex Spectron Group says. Central America will reap the most since the 1999- 2000 season, the U.S. government forecasts. While that won’t be enough to boost shipping rates, it may send coffee down 13 percent to $2.50 a pound in the first quarter and $2.20 in the second, a Bloomberg survey of seven analysts and traders showed. Arabica, the most-consumed variety, more than doubled since June 2010 as rain curbed output in Colombia, the second-biggest producer, and Brazilian stockpiles fell to their third-smallest in a half-century, USDA data show.
ABN Amro Bank NV and VM Group forecast a surplus for the season that begins Oct. 1. Futures are 7 percent below the 14-year high reached in May, and Kraft Foods Inc. and J.M. Smucker Co. have cut prices.

Colombia sees mining reforms finished by year-end
MEDELLIN, Colombia, Sept 2 (Reuters) - Colombia's mining reforms including restructuring the fast-growing sector and changes to the law should be completed by the end of the year, Energy Minister Carlos Rodado said on Friday.
The world's No. 4 coal exporter is undertaking major reforms to its mining sector after a series of accidents and growing criticism over how the industry is managed hit one of Colombia's most dynamic growth sectors.

Euro Coal-Prices rise slightly, only one buyer seen
LONDON, Sept 2 (Reuters) - European prompt physical coal prices rose by around $1.00 on Friday on buying by one major utility.
Dark spreads - the coal-fired power generation margins for electricity - have been firm for the past two months, but the recent, steady spot buying by one utility has no connection to the generation margins, utility sources said.

U.S. coal use down 5 pct from previous week - Genscape
HOUSTON, Sept 2 (Reuters) - U.S. coal consumption fell 5 percent in the past week as hurricane-turned-tropical-storm Irene cut power to millions, Genscape said on Friday.
Use of coal for the week to Thursday fell 2 percent from the same week of 2010, the power industry data monitor said.

Crude Oil Extends Drop on Signs of Slowing U.S. Economy, Rising Stockpiles (Source: Bloomberg)
Oil extended declines in New York as investors speculated that signs of a weakening U.S. economy and increasing crude stockpiles indicate fuel demand will falter in the world’s biggest consumer of the commodity. Futures slid as much as 3.8 percent before a report today that may show service industries grew at the slowest pace in more than a year. Crude supplies at Cushing, Oklahoma, the delivery point for West Texas Intermediate oil, rose 2.4 percent on Sept. 1 from Aug. 31, according to DigitalGlobe Inc. London- traded Brent widened its premium to U.S. prices. “Oil benchmarks slipped again as fears of slowing global growth weighed on demand sentiment,” Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd. in Melbourne, said in a note today. “Oil prices should primarily take direction from equity markets, so expect further selling pressure this week as markets remain jittery ahead of major policy discussions.”

Brent dips under $111 on US recession fears
LONDON, Sept 5 (Reuters) - Brent crude oil fell below $111 a barrel on Monday, as fears of another U.S. recession slowing fuel demand overshadowed concerns that a tropical storm may shut down some U.S. offshore oil production.
"Oil is falling on worries over weak demand, unemployment and talk of a double-dip recession," said Eugen Weinberg, head of commodities research at Commerzbank in Frankfurt.

China revises up July crude oil imports by 1.23 mln T
BEIJING, Sept 5 (Reuters) - China has revised up its July crude imports by 1.23 million tonnes to 20.66 million tonnes (4.87 million bpd), customs officials told Reuters on Monday.
China imported 1.23 million tonnes of crude oil in July from Russia via a spur of the Siberian ESPO pipeline, which was not included in data released on Aug. 22, the officials said.

Russia 2011 oil production seen above 500 mln tonnes
MOSCOW, Sept 3 (Reuters) - Russia will produce more than 500 million tonnes of oil in 2011, while also steering its coal industry towards developing Eastern world rather than "stagnating" West, Energy Minister Sergei Shmatko said on Saturday.
"This year we will likely beat (2010 results) as in the first half of this year we have produced around 350 million tonnes," Shmatko told Russia 24 TV channel in an interview.

China CNOOC plans Oct Huizhou refinery turnaround
BEIJING, Sept 5 (Reuters) - China National Offshore Oil Corp (CNOOC), parent of CNOOC Ltd , will shut down its 240,000 barrel-per-day Huizhou refinery in south China for up to 40 days of repair work from early October, two industry sources told Reuters on Monday.
The refinery processes mostly crude oil from Penglai 19-3, China's largest offshore oilfield operated by U.S. firm Conocophillips  which the Chinese government ordered last Friday to shut down due to oil spill issues.

Japan refiners resume marine shipments after storm
TOKYO, Sept 5 (Reuters) - Marine shipments from nine oil refineries halted due to a tropical storm late last week have resumed, company officials said on Monday, with the storm having crossed Japan's main island to the north and passed into the Sea of Japan.
Tropical depression Talas, downgraded over the weekend from a tropical storm, caused flooding and landslides in western Japan, leaving 24 people dead and several dozen missing, local media said on Monday.

Iron Ore-Key indexes cling to 4-mth high, spot gains capped
SHANGHAI, Sept 5 (Reuters) - Gloomy outlooks for the U.S. economy and the euro zone kept spot iron ore prices steady on Monday, despite increased buying from Chinese steel mills that helped drive global indexes to a four-month high.
Steel mills in China, the world's top steel producer and iron ore consumer, are expecting steel demand to pick up in September and October, the traditional peak season for consumption, as construction activities accelerate and other industrial sectors boost production.

Indian state seeks to tax big iron ore profits
BHUBANESWAR, India, Sept 3 (Reuters) -  India's biggest iron ore producing state has sought a new tax on mining profits and a higher royalty on steel feedstock, underlining a growing push from provincial governments and the steel industry to keep natural resources at home.
The chief minister of eastern Orissa state, which accounts for about a third of India's iron ore production, wrote to Prime Minister Manmohan Singh this week, saying mining firms' gains should be taxed because they were benefiting "beyond any measure of reasonable returns".

Liberia expects to ship first post-war iron, gold soon
PERTH, Sept 2 (Reuters) - Liberia is poised to reap the rewards of its mineral riches once again, with the first shipment of iron ore produced since the end of its decades-long civil war expected later this year and gold production due to resume in as soon as six months.    
Liberia, one of the world's poorest countries, is still recovering from the 1989-2003 war that decimated its mining industry which, before 1990, contributed over 25 percent to GDP.

Nigeria sees first iron ore output in 2012
PERTH, Sept 2 (Reuters) - Nigeria expects the first significant iron ore production next year from its Itakpe iron ore deposits as it looks to to reduce its dependence on oil and gas revenues, a government official said Friday.
"Unfortunately, once we found oil, all the attention went to oil and we neglected (other areas)... mining is one of the key areas that we want to diversify into," Olusegun Aganga, minister of trade and investment, told Reuters at a mining conference in Perth, Australia.


Japan Q4 aluminium premium seen at $118/T -source
TOKYO, Sept 2 (Reuters) - The premium for primary aluminium shipments to Japan in the October-December quarter has been set at $118 per tonne for at least one deal, an industry source directly involved in the talks said on Friday, marking the first decline in three quarters.
"We have agreed for premiums of $118 for part of our needs," said the source, adding that the portion agreed was less than half of his company's purchases.

Indian state seeks to tax big iron ore profits
BHUBANESWAR, India, Sept 3 (Reuters) - India's biggest iron ore producing state has sought a new tax on mining profits and a higher royalty on steel feedstock, underlining a growing push from provincial governments and the steel industry to keep natural resources at home.
The chief minister of eastern Orissa state, which accounts for about a third of India's iron ore production, wrote to Prime Minister Manmohan Singh this week, saying mining firms' gains should be taxed because they were benefiting "beyond any measure of reasonable returns".

Ghana H1 2011 gold output up 3 pct-chamber of mines
ACCRA, Sept 2 (Reuters) - Ghana's gold production rose 3 percent in the first half of 2011 to 1,497,023 ounces from 1,455,234 ounces a year ago, the West African nation's chamber of mines said on Friday.
Revenues during the same period jumped 31 percent to $2.2 billion from $1.68 billion.

METALS-Copper slides on weak U.S., China data
SHANGHAI, Sept 5 (Reuters) - Copper prices fell on gloomy U.S. payroll data and a historic low for an index of the Chinese services sector, as doubts grew over growth in the world's largest economies.
"U.S. non-farm payroll figures, continued debt woes in the euro zone and the low HSBC China services PMI in August are all dampening sentiment today," Minmetals Futures analyst Zhuo Guiqiu said.  

PRECIOUS-Gold edges lower; growth worry supports
SINGAPORE, Sept 5 (Reuters) - Spot gold edged lower, retaining most of its gains from the previous session, as a dismal growth outlook after the U.S. jobs data supported safe-haven interest in bullion.
"Even if you take out the effect from the Verizon strike, it is still a lousy number and people are concerned that growth is not there any more," said Dominic Schnider, head of commodity research of UBS Wealth Management in Singapore.


Copper Declines to One-Week Low as Slowing Economies May Cut Into Demand (Source: Bloomberg)
Copper fell to a one-week low in London on speculation slumping economies will reduce demand. An index of investor confidence in the euro region declined to a two-year low this month, Limburg, Germany Sentix said today. The MSCI World (MXWO) Index of shares fell 2.1 percent today. “It’s more just the feeling that the macro outlook is weaker,” Jim Lennon, global head of commodities research at Macquarie Group Ltd. in London, said by phone.

Gold Rises Above $1,900 an Ounce as Growth, Debt Concerns Enhance Demand (Source: Bloomberg)
Gold, trading above $1,900 an ounce, may advance toward a record on speculation Europe’s debt crisis will worsen, damping economic growth and driving investors to protect their wealth. Gold for immediate delivery was little changed at $1,902.05 an ounce as of 6:57 a.m. Singapore time. The metal touched $1,903.48 earlier, within 0.6 percent of the all-time high of $1,913.50 reached Aug. 23. Futures for December delivery in New York were at $1,905, up 1.5 percent from their close on Sept. 2. Floor trading in the U.S. was closed yesterday for the Labor Day holiday. “Fear continues to dominate European markets with the debt crisis center of attention,” Lachlan Shaw, an analyst at Commonwealth Bank of Australia, wrote in an e-mail. “The gold price rose to near record highs as investors embraced safe-haven assets.”

Baltic index at near 9-month high, rally extends
LONDON, Sept 2 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, rose to its highest in nearly nine months on Friday after surging iron ore and coal export business to Asia sustained a rally in recent days.  
Brokers said a growing ship glut was set to cap dry bulk freight rate gains in the coming months.          

20110906 0927 Palm Oil Related News.

Palm Oil Futures Decline on Concern Stockpiles May Climb as Exports Ease (Source: Bloomberg)
Palm oil declined on concern that stockpiles in Malaysia, the second-largest grower, may increase as exports slow after the end of the festival season. The November-delivery contract dropped 1.1 percent to 3,018 ringgit ($1,013) per metric ton on the Malaysia Derivatives Exchange. Futures gained 2.5 percent last week, the first increase in six weeks. Shipments from Malaysia may ease as importers stocked up ahead of the Muslim festival of Eid, celebrated last week. Malaysia’s palm oil exports fell 0.6 percent to 1.62 million tons in August compared with the previous month, independent market surveyor Intertek said Sept. 2. Shipments dropped 0.5 percent in the month, Societe Generale de Surveillance estimated on Aug. 29.

New frontier palm oil players look to RSPO
JAKARTA, Sept 5 (Reuters) - African and South American palm oil players are flocking to join the Roundtable on Sustainable Palm Oil (RSPO), highlighting a growing trend of the industry's rapid expansion outside main producing region Southeast Asia, the body's head said on Monday.
The industry group sees countries such as Gabon, Nigeria and Brazil ramping up production in coming years, as the land expansion of plantations in Malaysia has reached a natural ceiling and Indonesian growth has been slowed by a freshly inked two-year moratorium on forest clearance.

Palm oil slips in light trade, U.S weather eyed
KUALA LUMPUR, Sept 5 (Reuters) - Malaysian palm oil futures slipped with few leads as U.S. markets were shut for a holiday although investors feared hot and dry weather might slash soy crop yields in the Midwest and spur demand for the Asian edible oil.
"Palm oil traders are clearly watching for any developments in the U.S. Midwest as worse weather could prompt buyers to look at sourcing palm oil," said a trader with a foreign commodities brokerage.