Monday, September 26, 2011

20110926 1822 FCPO EOD Daily Chart Study.

FCPO closed : 2905, changed : -87 points, volume : higher.
Bollinger band reading : downside biased with possible pullback correction.
MACD Histrogram : falling lower, seller taking exposure.
Support : 2900, 2850, 2800, 2770 level.
Resistance : 2920, 2950, 2970, 3020 level.
Comment :
FCPO closed recorded huge losses with increasing volume participation. Last Friday soy oil ended substantially lower again and currently trading weaker while crude oil moving downward recording loss.
Getting worst global economy condition resulted broad commodities to trade lower as concern on slowing down demand plus rising inventories. Export data released today shows sign of improvement but still lower than previous month for the same period of time. Lower Indonesia export tax also added to the downward price movement.
Global oil conference which started last Friday in India, Mumbai sees industry expert Dorab Mistry statement expecting crude palm oil may tumble to as low as 2,800 ringgit ($880) a metric ton in the next five to eight weeks, the lowest level in almost a year, as output jumps in Malaysia and Indonesia.
Daily chart formed a down bar candle with long lower shadow closed below lower Bollinger band after market opened lower, move little upwards and fell lower followed by second session opened gap down, dip lower and recover upward to closed off the low of the day.
Chart study  turned to suggesting a downside biased market development with possible pullback correction testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110926 1739 FKLI EOD Daily Chart Study.

FKLI closed : 1328.5, changed : -41.5 points, volume : higher.
Bollinger band reading : downside biased with possible pullback correction.
MACD Histrogram : falling, seller in control.
Support : 1325, 1310, 1300, 1285 level.
Resistance : 1330, 1337, 1345, 1350level.
Comment :
FKLI closed poorly recorded massive losses with surging up volume changed hand doing 3 points discount compare to cash market that closed severely lower. Last Friday U.S. market closed little lower and Asia markets ended mostly in negative territory while European markets currently trading higher.
Investors confident across Asia seems getting lower despite European leader working hard to set up measure to o contain the sovereign-debt crisis with Thailand, Indonesia and Malaysia witness massive selling activities on heavy weight counter while European market reacted differently in hope that policy makers in Europe to intensify efforts to contain the region’s debt crisis.
Back home, selling pressure on heavy weight and banking stocks like Maybank, KLK, Nestle, LPI, RHB Bank and Public Bank resulted cash market to closed lower.
Daily chart formed a down bar candle with long lower shadow closed outside of lower Bollinger band after market opened lower, plunged downward by more than 70 points before recovered upward due to seller profit taking activities lifted FKLI index to closed off the low of the day.
Technical reading remained suggesting a downside biased market development with possible pullback correction testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with moderate cut loss and profit target.

20110926 1707 Regional Markets EOD Daily Chart Study.

DJIA chart reading : little downside biased.
 Hang Seng chart reading :  downside biased with possible pullback correction.
KLCI chart reading : downside biased with possible pullback correction.

20110926 1541 Global Market & Commodities Related News.

Stocks, euro fall on caution about Europe crisis moves
SINGAPORE, Sept 26 (Reuters) - Asian shares and the euro fell as investors reacted cautiously to reports that European leaders were working on new ways to stop the fallout from the euro zone sovereign debt crisis wreaking more damage on the world economy.
"We believe this type of plan would be seen as a credible solution to the crisis," said Warren Hogan, chief economist at ANZ Bank in Sydney.

FOREX-Euro hits 10-yr low vs yen on EU step doubts
TOKYO, Sept 26 (Reuters) - The euro fell to its lowest in a decade against the yen and zeroed in on an eight-month low versus the dollar, as riskier assets got hammered across the board while markets waited for more details on fresh efforts from European officials to tackle the debt crisis there.
"We believe this type of plan would be seen as a credible solution to the crisis," said Warren Hogan, chief economist at ANZ Bank in Sydney.

Philippines weighs impact of palm oil expansion on coconut
MANILA, Sept 23 (Reuters) - The Philippines could expand its palm oil acreage to up to 1 million hectares (2.47 million acres) from about 55,000 hectares now, but is weighing the impact on its major coconut oil industry before committing to a long-term plan, a senior official said on Friday.  
Coconut is a major dollar earner for the Southeast Asian country, the world's top supplier, and a greater focus on palm oil production could be at the expense of coconut oil exports and hit domestic demand. 

Indonesia's palm oil taxes, erratic weather to dominate Indian conference
MUMBAI, Sept 23 (Reuters) - Global edible oil traders are anxiously awaiting top buyer India's response to lower export taxes from major palm oil producer Indonesia after bitter complaints from local refiners that they would soon be out of business.  
At the annual Globoil industry meeting that starts in Mumbai on Friday, the La Nina weather pattern is also expected to be a dominant topic after forecasts it will inundate Southeast Asia -- the biggest palm oil producing region -- in a few months, possibly reducing output as demand from China and India rises.

La Nina weather could drive palm oil to 4,000 rgt-Mistry
Sept 25 (Reuters) - A probable resurgence in La Nina-induced rains late this year could curtail Southeast Asian palm oil production, driving prices towards 4,000 ringgit by April-June 2012, leading analyst Dorab Mistry said on Sunday.
The forecast from the head of vegetable oil trading with India's Godrej Industries represents a 34 percent rise from current palm oil prices that fell to their lowest in six weeks on Friday on fears of global economic recession.

Corn recovers from 12-week low; wheat, soy steady

SINGAPORE, Sept 26 (Reuters) - U.S. corn rose around half a percent recovering from a 12-week low, while wheat and soy steadied after last week's selloff as policymakers began working on new ways to stem the euro zone crisis.
"From the macro-economic perspective the market is waiting for further news on the European situation," said Brett Cooper, a senior manager of markets at FCStone Australia.

Vietnam's 2011 paddy output to hit record 42 mln T-ministry
HANOI, Sept 26 (Reuters) - Vietnam, the world's second-largest rice exporter, is forecast to produce a record 42 million tonnes of paddy this year, up around 5 percent from 2010 due to a larger planting area and higher yields, the Agriculture Ministry said.
The rising output of unhusked rice would help put Vietnam on track to reach a record export volume this year of at least 7 million tonnes of milled rice while ensuring ample domestic supply that could help cool inflation.

Philippines says may exceed 2011 rice output fcast
MANILA, Sept 26 (Reuters) - The Philippines may exceed its rice output forecast of 17.3 million tonnes this year, with expectations of a good fourth quarter harvest barring major damage from typhoons that may hit before the year ends, the agriculture minister said on Monday.
"There is a strong chance that we will exceed the 17.3 million tonnes," Proceso Alcala said in a televised media briefing, but added he did not want to peg a specific level for possible output.

Egypt's Alcotexa sold 2,490t of cotton last week
CAIRO, Sept 25 (Reuters) - Egypt's Alexandria Cotton Exporter's Association (Alcotexa) committed to sell 2,490 tonnes of cotton in the week that ended Sept 24, an Alcotexa official told Reuters on Sunday.
The sales comprised 480 tonnes of Giza 88 and 2010 tonnes of Giza 86.
The deal brings Alcotexa's export commitments for the 2011/12 season which began in September to 2,882 tonnes. The prices have not been announced yet.By this time last year, Alcotexa had sold 10,325 tonnes of cotton.

I.Coast says may produce half of world cocoa in '11
NEW YORK, Sept 24 (Reuters) - Ivory Coast, the world's top cocoa producer, expects to increase its cocoa output this year to the point that it could account for half of the world's production, the country's president said on Saturday.
"We produce 40 percent, probably this year it could be 50 percent, of world cocoa," President Alassane Ouattara told Reuters in an interview on the sidelines of the U.N. General Assembly.

Brazil cane investment bubbles but still not boiling
SAO PAULO, Sept 23 (Reuters) - Investments in the expansion of Brazil's sugar and ethanol industry have resumed and could pick up in 2012 as some groups dust off projects that had been shelved in the wake of the 2008 credit crisis and as inquiries into abandoned projects rise.
A few deep-pocket groups have recently announced expansion plans for mills and, although projects are just a shadow of those seen prior to the crisis, they should put an end to a long hiatus in this kind of investment.

Brent crude slips on euro zone debt concerns
SINGAPORE, Sept 26 (Reuters) - Brent crude fell further below $104 paring earlier gains to stand at a near 7-week low, on concerns that euro zone policymakers were doing too little to stem a debt crisis that helped wipe as much as 9 percent off oil prices last week.
"Absent some formal measures to deal with the debt problem, the general statements coming out of the euro zone are unlikely to reassure the markets," said Ric Spooner, chief market analyst with CMC Markets in Sydney. "Until we get something more concrete, there will be limited upside for oil."

Vietnam 2012 oil output to rise 6.7 pct y/y -paper
HANOI, Sept 26 (Reuters) - Vietnam is expected to raise its crude oil output by 6.7 percent next year to 16 million tonnes, drawing more from fields both offshore and overseas, countering a fall in bigger domestic fields, a state-run newspaper reported on Monday.
"A crude oil output decline in major oilfields is in fact taking place, but to offset the fall there are smaller fields," Phung Dinh Thuc, Chairman of state oil and gas group Petrovietnam, was quoted by the official Dau Tu newspaper as saying.

Copper extends losses, hits 14-month lows in Shanghai
SHANGHAI, Sept 26 (Reuters) - Copper extended losses as fears of a Greek default stirred worries about a global recession, which could slow industrial use, a scenario underlined by copper's sharpest weekly fall in nearly three years last week.
"Investors are cautious about the global economy and sticking to safe plays. Many expected some measures to deal with the euro zone crisis during the G20 summit but nothing came out of it," said CIFCO Futures analyst Zhou Jie.

Rio Tinto eyeing Australia aluminum business spin-off: paper
Sept 26 (Reuters) - Global miner Rio Tinto   is considering spinning off part of its Australian aluminium assets as a planned carbon would raise costs, the Australian Financial Review said on Monday.
Rio has been working with Macquarie Group  and PricewaterhouseCoopers to consider its options for the business, the paper said.

Shougang Peru strike ends after one month
LIMA, Sep 25 (Reuters) - Workers at Shougang Hierro Peru, the only producer of iron ore in the country, have ended a month-long strike over better better wages, a labor leader told Reuters on Sunday.
The stoppage at Shougang Hierro Peru , a unit of the Chinese group Shougang, had led the company to declare force majeure, freeing them from meeting contractual obligations on shipments of metal.

Power blackout stuns Chile, halts copper mines
SANTIAGO, Sept 24 (Reuters) - A massive power blackout paralyzed crucial copper mines in Chile on Saturday and darkened vast swaths of the country including the capital Santiago before energy started to be restored, officials said.
The outage acutely exposed the fragility of the energy grid in the world's top copper producer, which was devastated by a powerful earthquake in 2010.

Zambia's Sata likely to avoid major copper shake up
JOHANNESBURG, Sept 23 (Reuters) - New Zambian President Michael Sata is likely to back away from shaking up the nation's vital copper industry significantly, despite his past attacks on foreign mining investment -- especially when it comes from China.
Chinese companies, which have sunk $2 billion into Zambia to secure a share of its mineral wealth, may still be unnerved by Sata's past accusations that they had created slave labour conditions with scant regard for safety or the local culture.

Underlying China iron ore demand strong -ArcelorMittal
LONDON, Sept 23 (Reuters) - Underlying Chinese demand for iron ore is still strong despite evidence of more cautious behaviour from some buyers, ArcelorMittal told investors on Friday, adding it expects buying activity to restart in the fourth quarter.
"There has certainly been a longer period of stockholding in China at the mills this summer than the last couple of summers. What we are seeing is people taking a wait-and see approach in China, but the underlying demand is still very strong," Simon Wandke, chief commercial officer of ArcelorMittal's mining operations, said during an investor meeting.

METALS-Copper extends losses, hits 14-month lows in Shanghai
SHANGHAI, Sept 26 (Reuters) - Copper extended losses as fears of a Greek default stirred worries about a global recession, which could slow industrial use, a scenario underlined by copper's sharpest weekly fall in nearly three years last week.
"Investors are cautious about the global economy and sticking to safe plays. Many expected some measures to deal with the euro zone crisis during the G20 summit but nothing came out of it," said CIFCO Futures analyst Zhou Jie.

PRECIOUS-Spot gold falls 1 pct as recession fear prevails
SINGAPORE, Sept 26 (Reuters) - Spot gold prices fell more than 1 percent, extending their loss of 4.6 percent in the previous session, amid wide-spread anxiety about prospects for a global recession as investors cautiously watch European leaders seek new ways to solve the euro zone debt crisis.
"The dollar still has room to strengthen more in the short term because the fear of crisis is not over," said Dominic Schnider, head of commodity research of UBS Wealth Management in Singapore.

Spot gold falls 1 pct as recession fear prevails
SINGAPORE, Sept 26 (Reuters) - Spot gold prices fell more than 1 percent extending their loss of 4.6 percent in the previous session, amid wide-spread anxiety about prospects for a global recession as investors cautiously watch European leaders seek new ways to solve the euro zone debt crisis.
"Our goal at $2,000 remains in place. The structural factors behind high gold prices are still there, but in the short term, we have to acknowledge that if everything collapses, it is tough for gold to advance."

20110926 1139 Local & Global Economic Related News.

Mindful of the fear of a global recession, the government is keeping a close watch on the  global situation although the local economy continues to grow, said PM Datuk Seri Najib  Tun Razak. “We need to watch it very carefully. In the pursuit of a long-term agenda  towards 2020, we need a benign external environment for us to thrive and succeed,” he  said.  
• "While many western nations struggled to drag themselves out of recession and global  experts continue to predict "gloom and doom" over the past two years, our economy has  grown almost beyond recognition," he said. (The Star)    

Malaysia has made several preparations to face the world economic downturn following  the European debt crisis and the falling U.S. economy, said Minister in the  Prime  Minister's Department Tan Sri Nor Mohamed Yakcop. Malaysia would not be affected if  the world's economic recession is for a short period but if the downturn continues, there is  possibility that Malaysia would be affected as well, he said.  
• However did not disclose the strategies and plans taken by the government to face a  global economic recession.
• Malaysia should also be able to still defend its economic position being more reliant on  Asian economies such as China and India, he added. (Bernama)  

The country is on track to achieve 5% growth following positive growth in 2H11, Minister  in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop said. The volatile  nature of economies in the U.S. and Europe was not likely to seriously jeopardise the  country's growth in the short term.  
• “The economy in 2H11 looks to achieve a good rate as there are a lot of Economic  Transformation Programme projects and 10th Malaysia Plan projects expected to take  off in these six months,” he noted.
• “We previously forecast that we will be able to reach a growth rate of 5-6% this year.  Looking at the serious situation in other parts of the world, we still believe that we can  reach 5%, which is a good rate,” Nor Mohamed said. (The Star)

PM Datuk Seri Najib Tun Razak on last Saturday gave a broad smile when asked about  the possibility that the government would announce  a bonus as well as a  pay hike for  civil servants in the  2012 Budget. "I maintain the stand that anything that is to be announced in the budget should not be leaked out earlier," he said.  
• "It must stimulate investment and boost confidence  among the consumers to continue  spending prudently so that the internal economy would continue to be based on strong  demand whether in terms of investment or consumption,” Najib noted. (Bernama)

The government has allocated RM30m for the Retail Shop Transformation Programme this year in a bid to improve the competitiveness of small time retailers in facing today's  highly competitive retail environment. Domestic Trade, Cooperatives and Consumerism  Minister Datuk Seri Ismail Sabri Yaakob said in the first eight months this year, 300 old  retail shops nationwide had been given a facelift and equipped with various facilities to  attract more customers.  
• The cost to give the new facelift to each shop was around RM60,000.  
• Among the shops involved in the programme are private-owned retail shops, cooperative  shops and car workshops," he said, adding that another 200 retail shops were expected  to get the new facelift by end of this year. (Bernama)  

The Ministry of Domestic Trade, Cooperatives and Consumerism has implemented the  Basket of Brands (BOB) scheme to protect companies against copyright infringement  and sale of counterfeit goods. Its enforcement division director-general, Mohd Roslan  Mahayudin, said so far 20 owners of 40 brands took part in the scheme and they would be  given priority to follow-up and verify the seizures of counterfeit goods.  
• They included global clothing, sportswear, liquor, car parts and pharmaceutical brands.  
• Other items that do not come under BOB will not be assumed as counterfeit goods.  
• Mohd Roslan said BOB would be launched at an intellectual property right enforcement  convention in Kuala Lumpur on 20 Oct. (Bernama)

U.S. President Barack Obama said improving the nation’s  public schools is crucial to  the U.S.’s economic recovery as he highlighted his decision to let states sidestep the No  Child Left Behind law by raising education standards. “It is an undeniable fact that  countries who out-educate us today will out-compete us tomorrow. Businesses will hire  wherever the highly skilled, highly trained workers are located.” (Bloomberg)  

Dow Falls Most Since October 2008 on Economic Growth Concerns
U.S. stocks fell last week, sending the Dow Jones Industrial Average to the biggest loss since 2008, as the  Federal Reserve said risks to the economy have increased and concern grew that policy makers will fail to spur  growth. (Bloomberg)

Institute of International Finance chairman Josef Ackermann said it was “crucially  important” for  eurozone governments to implement a  21 Jul agreement to beef up the  rescue fund for their common currency. He called upon eurozone governments to quickly  approve the  €440bn (US$593bn) European Financial Stability Facility and measures to  enhance greater economic policies discipline. (Bloomberg)

The International Monetary Fund said it is ready to “strongly support” European nations in their efforts to resolve the region’s sovereign  debt crisis. Eurozone countries will do  whatever is necessary to end the crisis and ensure the financial stability of the entire euro  area and its members, the fund said. Advanced nations are at the “core” of a resolution to  the current global uncertainty and should adopt policies to improve their finances, it said.  (Bloomberg)

Asian Currencies Have Worst Week Since 1998 on Concern Over Global Economy
Asian currencies had their biggest weekly drop since 1998 as concern the global economy is headed for a  recession dimmed the outlook for exports and prompted investors to favor safer bets than emerging-market  assets.  South Korea’s won and  India’s rupee rose yesterday after policy makers in the two nations said they  were prepared to intervene, while dollar sales by  Bank Indonesia helped strengthen the rupiah. All 10 mosttraded Asian currencies weakened last week as the  Federal Reserve warned of “significant downside risks” to  the U.S. economy and a Chinese purchasing managers’ index showed export orders and production declined.  (Bloomberg)

European banks need to move quickly to shore up their  capital, Bank of Canada
Governor Mark Carney said. “Their banking system, it’s undercapitalized,” Carney said. “That may require some injections, direct injections of capital to those banks in the coming weeks.” Carney also reiterated that Europe’s monetary union has “flaws” that need to be fixed, and said  €1tr (US$1.35tr) may be needed to stem investor concerns about the sovereign-debt crisis. (Bloomberg)

Europe Faces Geithner, Soros Pressure to Defuse Debt Turmoil
European policy makers faced mounting pressure from foreign counterparts and investors to step up efforts to  prevent their sovereign debt crisis from further roiling the world’s financial markets and economy. U.S. Treasury  Secretary Timothy F. Geithner set the tone for last week’s annual meeting of the International Monetary Fund in  Washington by warning that failure to combat the Greek- led turmoil threatened “cascading default, bank runs  and catastrophic risk.” Billionaire investor  George Soros said “something needs to be done” to safeguard  Europe’s banks because Greece may be unable to avoid default.  (Bloomberg)

European governments are exploring speeding the start of a permanent rescue fund for  their cash- strapped economies amid fresh signs they may bolster efforts to halt the  worsening sovereign debt crisis. Senior finance officials will examine next week the cost  advantages of setting up the fund, known as the European Stability Mechanism, a year  earlier than its currently planned Jul 2013 start, according to a document prepared for the  meetings. (Bloomberg)

Indonesia’s Growth Is Solid as Lending Exceeds Target, Central Bank Says
Indonesia’s central bank expects economic growth to remain solid even amid a global slowdown as lending this  year may exceed commercial bank expectations, Deputy Governor Muliaman Hadad said. Loan growth at  Indonesian banks will probably rise as much as 25 percent, beating the industry’s 24 percent target, as demand  for working capital and investment credit increases, Hadad said. (Bloomberg)

Officials from  China and  Japan, the world’s second- and third-biggest economies,  indicated that their support for Europe will have limits and the region needs to solve its own debt crisis.  
• Japanese Finance Minister Jun Azumi said that while his nation can buy European  Financial Stability Facility bonds if needed, there is no blank check.  
• “At the margin we can do quite a bit to help,” Chinese central bank Deputy Governor Yi  Gang said. At the same time, “the real solution of the European sovereign debt crisis has  to be done by Europeans themselves.” (Bloomberg)  

Singapore’s CPI rose 5.7% yoy in Aug (5.4% in Jul), the fastest pace since  2008 as  housing and food costs climbed. The CPI for August rose 0.7% mom, reflecting mainly  higher costs of private road transport, accommodation, clothing & footwear as well as  "recreation & others". Meanwhile core inflation, which excludes the costs of  accommodation and private road transport, climbed 0.4% mom and 2.2% yoy. Economists  were expecting a headline CPI growth rate of 5.2%. (Channel News Asia)  

The Reserve Bank of  India is close to the end of its record series of  interest-rate increases as inflation will probably slow next year, Deputy Governor Subir Gokarn said,  as:
• Oil prices do not appear to be going higher
• Demand is being moderated    

The Bank of  Thailand  may lower its economic  growth  projections when it unveils new  forecasts next month as a weakening global recovery weighs on the nation’s expansion,  Governor Prasarn Trairatvorakul said. Inflation expectations aren’t likely to rise and the  central bank has “closed the gap somewhat” on normalizing interest rates. It had raised its  key interest rate for a seventh straight meeting last month to 3.5%, citing inflation  risks  posed by the new government’s plan to raise wages and support rice prices. The central  bank currently expects GDP to increase 4.1% in 2011 and 4.2% next year. (Bloomberg)

Vietnam's CPI in Sep was up 0.82% mom, easing from its 0.93% rise in Aug. The rise  mainly stemmed from higher prices for education services, food and foodstuff, the office  said in a statement. The index for Jan through Sept was up 22.42% yoy, compared with  23.02% rise for Jan-Aug. From the end of 2010, the index is up 16.63%. The government  targets a full-year inflation forecast at 18%. (Wall Street Journal)

Southeast Asian nations launched a nearly US$500m  fund to build  infrastructure,  pooling resources in hopes of closing the gap between the  dynamic region and major  wealthy economies. The fund would offer loans to build roads, railways and other projects  without direct foreign assistance. The ASEAN Infrastructure Fund will start with  US$485.2m and aims to finance six projects a year.
• By 2020, ASEAN hopes the fund will offer US$4bn in loans and that its total leverage will  be worth more than US$13bn. The fund will be based in Malaysia, the biggest  contributor with a US$150m initial investment.  
• Indonesia is the second-largest contributor with US$120m. The Asian Development  Bank will provide US$150m and eventually offer 70% of financing. (AFP)  

The Philippines’ budget surplus isn’t ideal if the government won’t be spending enough  on roads, schools and health care, President Benigno Aquino said. The government had a  surplus of PP9.22bn in Aug while state spending fell 8.1% in the first eight months,  according to a 22 Sep report. Still, it’s better to have excess than worry about lack of funds,  Aquino said. (Bloomberg)

20110926 1125 Malaysia Corporate Related News.

SP Setia will acquire 0.9ha freehold land in Melbourne, Australia, from Portbridge Pty Ltd  for RM81m cash. SP Setia said the acquisition would be its second foray into the  Melbourne property market following its maiden Fulton Lane project. "The land is expected  to be capitalised on the shortage of residential units in the area and be developed into an  apartment project with an estimated gross development value of RM777.5m," it said. It said  the company targeted to launch the project within 12-18 months from the date of  acquisition. (Bernama)

The latest development in  Selangor’s water restructuring saga is that the federal  government is considering taking over Konsortium Abass and Splash but not  Puncak  Niaga. Sources say this is due to PAAB hitting a wall in its negotiations with Puncak Niaga  and Selangor on resolving a prolonged deadlock on the industry’s consolidation. “It has  come to a point where things have to be non-holistic. Talks have been initiated.” says a  source.
 • However sources say that the aim of the takeover could be to pressure Puncak Niaga.  Sources say that there  is a glimmer of hope that PAAB and Selangor will have more  fruitful negotiations this time around because the  new person at the helm of KPS was  previously with PAAB. (Edge Weekly)  

Land acquisition is expected to be the biggest problem facing the  KVMRT  project. Once  the government decides to acquire land using the Land Acquisition Act (1960) (LAA), its  owner will have very little recourse except to work out the best price for the property. While  there is no provision under the LAA to acquire an underground title, Section 92 of the  National Land Code 1965 provides for it.  
• “Only the owner of a piece of land can allow an underground cubic layer of underground  land, known as the stratum, be owned separately from  his property on the surface.”  SPAD said. One way is for owners to apply for stratum titles to be issued to the  government. The other way is for the government to  first acquire the land, and  subsequently re-alienate the property on the surface back to the owners.  
• Last week, Minister of the Prime Minister’s Department Datuk Seri Mohd Nazri Abdul  Aziz told residents of Jalan Sultan in the heart of Petaling Street that he would propose  to the Cabinet to realign the MRT’s route running underground away from Petaling Street  . This is to avoid compulsory land acquisition during construction of the tunnel below.  
• Datuk Teo Chiang Kok, Director of Bandar Utama Development Sdn Bhd said the  proposed MRT stations  behind TV3 will cause logistics problems as it will be near the  junction of Persiaran Bandar Utama and LDP. (Edge Weekly)  

U Mobile aims to secure a double-digit subscriber market share in as early as three years  as it continues to aggressively expand its network and launch more innovative and quality  products and services.  "We aim to have a double-digit market share in three to five years.  We believe it's an achievable goal, it is an aspiration, all of us need to have that," said Dr  Kaizad Heerjee, CEO of U Mobile said.  
• Kaizad said over the past six to nine months, the company has seen renewed interests in U Mobile, while the brand is becoming well accepted in the market.  The company,  which has merely several thousands subscribers over a year ago, now has 1m.  
• "I believe that as long as we continue to expand our network, distributors continue to be  committed, network quality remains very good, and brand is appealing, customers will  give it a shot," he added.  
• It plans to position itself as a leader in high speed data services. "For us, voice is a  commodity, regardless if it's 3G or 2G, it doesn't really make much of a difference. I don't  think customers are going to come into our network by the millions if we lower our rates  by one or five sen. The differentiator really is high speed data. That's our core focus," he  said. (BT)    

A probable resurgence in La Nina-induced rains late this year could curtail South-East  Asian  palm oil  production, driving prices towards RM4,000 by April-June 2012, leading  analyst Dorab Mistry said.  
• The forecast from the head  of vegetable oil trading with India’s Godrej Industries  represents a 34% rise from current palm oil prices that fell to their lowest in six weeks on  Friday on fears of global economic recession. La Nina triggers heavy rains that can stall  harvesting rounds in top producers Indonesia and Malaysia.
• Six months down the line, output usually gets cut due to poor pollination affecting palm  fruit development. “The best we can expect for 2012 is flat production or a marginal  increase in Malaysia,” Mistry said at a conference in Mumbai. (Reuters)

Tenaga may be broken up?
There is a proposal to break up the dominant electricity supplier’s transmission, distribution and generation divisions in an attempt to reorganize the company, say sources. It is learnt that special purpose unit MyPower Corp will oversee the matter as part of the government’s effort to reform the country’s power sector. “It could be seen as a solution to Tenaga’s current issue, where the less profitable divisions are taken over by the government while the more profitable segments will be left in the listed entity,” says an industry source.  (Source: The Edge)

MTD Capital Bhd, which launched its new coal port terminal in Indonesia's Cigading last  week, is going all out to woo Malaysia's top coal buyer,  Tenaga Nasional Bhd (TNB).  MTD CEO Datuk Azmil Khalili Khalid said the new port is now ready to rope in TNB as one  of its large customers and the company plans to invite TNB president and chief executive  officer Datuk Seri Che Khalib Mohamad Noh to visit the facilities.
• "Previously, TNB didn't buy coal from Indonesia, maybe due to uncertainty in delivery  issues. That is no longer the issue and hopefully TNB will be one of our largest  customers one day," Azmil told Malaysian reporters in Jakarta recently. TNB, which uses  20% of its fuel from coal, buys coal from as far as Australia and South Africa.
• Industry sources believe that TNB's reluctance to buy Indonesian coal could be due to  lower coal quality or inconsistent deliveries.(BT)  

Bandar Raya Development Bhd (BRDB) has been asked by Bursa Malaysia to clarify to  its shareholders issues that have been raised in the media regarding the company's  proposal to hive off key assets to its major shareholder, reliable sources said. One of the most sticky issues related to the deal is the unknown identity behind an influential 23.6% block of shares in BRDB held under a nominee account for Credit Suisse.  
• The Minority Shareholder Watchdog Group (MSWG) had pointed out that this stake was  very likely to be the deciding factor in whether the asset sale would go through. This is  on the basis that the 23.6% block amounts to 30% of total disinterested shareholders of  BRDB and in turn might comprise 50% of votes of shareholders who actually turn up to  vote on the matter, which requires only a simple majority to go through.  
• It should be noted that under Section 69(0)(8) of the Companies Act, Bursa and the  Securities Commission have the power to direct companies to disclose the identity of the  beneficial owners of substantial blocks of shares in the company. Section 69 also  empowers the affected issuer itself, in this case BRDB, to request for details on the  beneficial owners from a trustee, in this case Credit Suisse. (Starbiz)    

MISC Chairman, Datuk George Ratilal said the rating downgrades by Moody’s and S&P  comes as no surprise but he emphasised that it was more important to note that MISC was  still an investment grade, which would still enable the company to raise funds in the future  despite being impacted by the current downturn. At MISC AGM last week, reporters were  informed that the shipping industry would likely see light at the end  of the tunnel only in  2014.
• Datuk Nasarudin, CEO implied that MISC would not rule out the possibility of selling its  weakest business. MISC will take a hard look at its portfolio, as getting out of business is  a major decision. But management will not be shy to make hard decisions to protect the  overall value of MISC. (Star Biz)  

Khazanah Nasional Bhd is in talks to buy a stake in Turkish hospital group Acibadem, two  sources said. The purchase, by Khazanah's 70%-owned healthcare unit Integrated  Healthcare, was being advised by Deutsche Bank, one  of the sources said. “The sellers  have multiple buyers at this point, and Integrated  Healthcare is one of the interested  parties,” the source said.  
• In another development, Khazanah has reportedly delayed a sale of yuan-denominated  sukuk due to volatile market conditions.  The sale would have been the world's first of  Islamic bonds denominated in the Chinese currency. (Agencies)    

Cypark and  LG Electronics have signed a MoU last Friday to form a strategic  collaboration in a solar renewable energy (RE) project in Pajam, Negeri Sembilan. Cypark  also signed a RM75m financing agreement with HSBC Amanah Raya Malaysia to finance  the Pajam Integrated RE Park. (Malaysian Reserve)    PKT Logistics Group plans to invest RM1bn in the next five years to expand its state-ofthe-art warehouses to 5m sf at selected locations in Malaysia. (Star Biz)  

OSK Investment Bank Bhd has resigned as an independent adviser to  Kinsteel Bhd's corporate exercise, citing that new developments had arisen which the bank believed  would affect its ability to act as the independent adviser. The bank had resigned with effect  from Thursday and TA Securities Holdings Bhd was appointed as the new independent  adviser.  
• On July 25, Kinsteel announced its proposed subscription to RM280m nominal value of  seven-year 7% redeemable convertible unsecured loan stocks (RCULS) issued by its  subsidiary, Perwaja Holdings Bhd, at 100% of its nominal value. (Starbiz)    

Sarawak Cable entered into a conditional shares sale and prchase agreement with Tiopan  Hasudungan Marpaung, Parulian Marpaung, Bayu Ardiyanto and Subari to acquire 65%  equity interest in PT Inpola Mitra Elektrindo for a total cash consideration of 15bn rupiah  or RM5.4m. (Malaysian Reserve)

AmIslamic Bank’s proposed RM2bn Subordinated Sukuk Musyarakah Programme has  received an “A1” rating and also a “stable” outlook for the proposed securities’ long-term  rating by RAM. (Malaysian Reserve)  

Port Klang Authority (PKA) chairman, Datuk Dr Teh Kim Poo said a third port is expected  to be built by next year to complement the existing Northport and Westport. The third port, earmarked to be built near Westport, will be privately owned, with PKA overseeing its  operations. (Bernama)

Proton takeover on the cards again?
There has been renewed interest in the national automotive company with at least four entities and two individuals looking to take over the 42.7% interest held by Khazanah. The usual names have surfaced as possible acquirers of the company, namely DRB-Hicom, Naza group, Mofaz group. Others names that are being bandied about include the Sapura group and two high net worth individuals, one linked to a prominent business group and another who is based mainly in the UK. (Source: The Edge)

MCMC allocation soon
The Malaysian Communications & Multimedia Commission (MCMC) is in the final stages of evaluating the allocation for the 2.6GHz spectrum and may promote collaboration among players for better efficiency on spectrum usage. Currently, some of the players are already sharing infrastructure for their current networks and others are exploring ways to share even 2.6G, which is also known as the fourth generation of wireless spectrum that promotes faster speed and bigger capacity for upload and download of data. “The evaluations are now at the final stages. The allocation of the 2.6GHz spectrum takes into consideration the nation's entry into another level of wireless broadband with technologies such as LTE (long-term evolution), apart from the constraints on limited resources up for offering,'' MCMC said in  an email reply to queries from StarBiz. (The Star)

20110926 1112 Global Market & Commodities Related News.

GLOBAL MARKETS-Stocks gain, euro steadies on Europe hopes
Sept 26 (Reuters) - Asian shares rose and the euro steadied on Monday on reports that European leaders, under pressure from tumbling markets, were working on new ways to stop the fallout from the euro zone sovereign debt crisis wreaking more damage on the world economy.
MSCI's broadest index of Asia Pacific shares outside Japan rose 0.6 percent, after dropping 7.5 percent last week. Tokyo's Nikkei, which was closed for a holiday on Friday as regional markets fell, eased 0.4 percent.

China’s Stock Index Swings Between Gains, Losses Amid Inflation Concerns (Bloomberg)
China’s stocks swung between gains and losses as comments from the central bank governor that inflation remains the nation’s “top concern” overshadowed record-low equity valuations. China Vanke Co. and Gemdale Corp. declined among developers after China Business News said the city of Chongqing will start imposing a property tax on existing villas. Anhui Conch Cement Co. gained 1.3 percent after Citic Securities Co. said cement stocks may rebound on valuations. China Coal Energy Co., the nation’s second-largest coal producer, advanced 1.7 percent after its parent increased its stake. The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, dropped 2.7 points, or 0.1 percent, to 2,430.46 as of 10:25 a.m., erasing an earlier gain of 0.4 percent and set for the lowest close since July 16, 2010. It lost 2 percent last week, its fourth weekly decline. The CSI 300 Index (SHSZ300) fell 0.1 percent to 2,666.52.

Oil skids to 6-week lows on economic angst
NEW YORK, Sept 23 (Reuters) - Oil fell to six-week lows on Friday, as fresh concerns about the euro zone added to the economic gloom that knocked as much as 9 percent off prices this week.
"A weakening global economy where recession possibilities have been reinforced by a dramatic 18 percent plunge in copper prices this week continues to suggest weakening forward oil fundamentals," said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois.

China considers policy shift to boost shale gas
CHENGDU, Sept 25 (Reuters) - China may treat shale gas as separate from conventional hydrocarbons to encourage companies outside of state-owned industry to invest, government officials said on Sunday.
It may also offer pricing and other incentives across the industry to further to tap the potentially huge resource.

NYMEX-Natural gas ends lower; mild weather forecast
NEW YORK, Sept 23 (Reuters) - Front-month U.S. natural gas futures ended lower on Friday for a fourth straight day, as pressure from forecasts for mild weather next week outweighed early short covering ahead of the weekend.
"I think people were a little hesitant to stay short ahead of the weekend, but the weather looks bearish, and the tropics look clear right now for the Gulf (of Mexico)," said Steve Mosley at SMC Advisory Services in Arkansas.

Euro Coal-Prompt steady but Calendar swaps tumble
LONDON, Sept 23 (Reuters) - Prompt physical coal prices were steady to slightly lower on Friday but Calendar 2012 and 2013 coal swaps dropped by over $2.00 in line with the meltdown in world stocks, oil and base metals, triggered by global economic concerns.
"Coal prices have remained high, despite the weakness in the global growth outlook and in our view they are likely to remain so over the coming years," French investment bank Natixis said in its weekly Commodities Report.

COMMODITIES-Markets slide, investors fear slowing world demand
NEW YORK, Sept 23 (Reuters) - Commodities slid again on Friday, dragging a benchmark index to its lowest since late November as investors sold risky assets on fears governments had done too little to head off a global recession.
"Financial markets are sick and tired of the authorities in Europe and in the U.S. twiddling their thumbs and not doing substantive things to solve this crisis of the global economy," said Barton Biggs, managing partner at New York-based Traxis Partners.

20110926 1109 Global Market Related News.

Asian Stocks Decline, Led by Japanese Shares (Source: Bloomberg)
Asian stocks fell, with the MSCI Asia Pacific Index set for its lowest close since June 2010, amid concern the European sovereign-debt crisis may weaken economic growth. Japanese machinery makers Fanuc Corp. and Komatsu Ltd. and electronics manufacturer Panasonic Corp. lost more than 2.8 percent, leading declines in the MSCI Asia Pacific Index. Hanjin Shipping Co., South Korea’s largest shipping line, tumbled by the daily limit of 15 percent after saying it plans to sell new shares. Nippon Electric Glass Co. sank 12 percent after lowering its profit forecast. U.S. Treasury Secretary Timothy F. Geithner warned at the annual meeting of the International Monetary Fund in Washington that failure to combat the Greek-led turmoil threatened “cascading default, bank runs and catastrophic risk.” Billionaire investor George Soros said “something needs to be done” to safeguard Europe’s banks because Greece may be unable to avoid default.

Pimco's El-Erian Sees Global Economy Slowing Next Year (Source: Bloomberg)
Pacific Investment Management Co., which runs the world’s biggest bond fund, is forecasting advanced economies to stall over the next year with Europe sliding into recession, underscoring mounting investor concern about the global economic outlook. There will be little to no economic growth in industrial nations during the coming 12 months as Europe’s economy shrinks by 1 percent to 2 percent and the U.S. stagnates, said Mohamed El-Erian, chief executive officer of Newport Beach, California- based Pimco. That will leave worldwide expansion at about 2.5 percent, less than the 4 percent forecast by the International Monetary Fund this year and next. Such gloomy sentiment dominated weekend talks of policy makers, investors and bankers in Washington, where the International Monetary Fund and World Bank held their annual meetings.
The Dow Jones Industrial Average suffered its biggest loss since 2008 last week as the U.S. Federal Reserve said risks to its economy had increased and Europe’s debt crisis went unresolved.

Consumer Spending Probably Slowed in August (Source: Bloomberg)
U.S. consumer spending probably slowed in August, reflecting growing pessimism among households that may further restrain the biggest part of the economy, economists said reports this week will show. Purchases rose 0.2 percent after July’s 0.8 percent gain, according to the median estimate of 63 economists in a Bloomberg News survey before the Commerce Department’s report Sept. 30. Consumer confidence held close to a more than two-year low, home sales dropped for a fourth month and factory orders for big- ticket items declined, other reports this week may show. Scarce employment prospects, tepid wage gains and a stock market rout have pummeled consumer sentiment, which threatens to slow sales for companies like Ford Motor Co. (F) The slowing economy prompted Federal Reserve policy makers last week to introduce another round of unconventional stimulus to ensure the recovery is sustained.

U.S. Equity Futures Advance as Leaders Seeks Ways to Halt European Crisis (Source: Bloomberg)
U.S. stock futures rose, following the biggest weekly drop since October 2008 for the Dow Jones Industrial Average, on speculation European policy makers will announce steps to contain the debt crisis as foreign counterparts lobby for action. Standard & Poor’s 500 Index futures expiring in December advanced 0.7 percent to 1,137.70 at 9:23 a.m. Tokyo time after falling as much as 0.7 percent. Dow futures gained 62 points, or 0.6 percent, to 10,759. U.S. Treasury Secretary Timothy F. Geithner warned at the annual meeting of the International Monetary Fund in Washington that failure to combat the Greek-led turmoil threatened “cascading default, bank runs and catastrophic risk.” Billionaire investor George Soros said “something needs to be done” to safeguard Europe’s banks because Greece may be unable to avoid default.

Betting on Bernanke Returns 28% for Treasuries (Source: Bloomberg)
Betting on Ben S. Bernanke has been the most profitable trade for government bond investors in 16 years, defying lawmakers in the U.S. and abroad who said the Federal Reserve chairman’s policies would lead to runaway inflation and the dollar’s debasement. Treasuries due in 10 or more years have returned 28 percent in 2011, exceeding the 24.4 percent gain in all of 2008 during worst financial crisis since the Great Depression, according to Bank of America Merrill Lynch indexes. Not since 1995, when the securities soared 30.7 percent, have investors done so well owning longer-dated U.S. government debt. The rally continued last week, driving yields to record lows, as the Fed said it would exchange $400 billion of short- term Treasuries for those maturing in more than six years. The move, dubbed Operation Twist by traders, is designed to lower borrowing costs and keep the economy growing. Previous Fed efforts unlocked credit markets and helped ward off deflation.

Japanese Stocks Decline as Exporters Fall on Europe Debt Crisis Concern (Source: Bloomberg)
Japanese stocks fell after a three- day weekend, with the benchmark Nikkei 225 (NKY) Stock Average heading for its lowest close in more than two years, as exporters and trading companies dropped on concern Europe won’t resolve its debt crisis. Sony Corp., which depends on Europe for about a fifth of its sales, fell 3.4 percent. Mitsubishi Corp., Japan’s biggest commodities trader by sales, slumped 6.5 percent as copper futures extended declines in London. Nippon Electric Glass Co. tumbled 10 percent after the glassmaker cut its profit forecast for the half-year through ending September. The Nikkei 225 Stock Average dropped 1.5 percent to 8,432.20 as of 10:07 a.m. in Tokyo, poised for its lowest close since April 2009, as Japanese share prices caught up with declines late last week in U.S. and Europe. Japanese markets were closed for a holiday on Sept. 23. The broader Topix index declined 1.6 percent today to 732.56.

South Korean Won Declines on Europe Debt Concern as Intervention Waning (Source: Bloomberg)
South Korea’s won fell on concern Europe may fail to contain the region’s debt crisis and as traders said authorities are scaling back intervention that slowed declines last week. Bonds advanced. The won sank to near a one-year low, slumping 1.4 percent to 1,183.30 per dollar as of 9:40 a.m. in Seoul, after last week losing 4.7 percent, according to data compiled by Bloomberg. The currency gained 1.1 percent on Sept. 23 in the final minutes of trading as the finance ministry and central bank said they were ready to intervene. It touched 1,196.13 that day, the weakest level since September 2010. “The won is weakening today as the government artificially intervened in the market on Friday, and as nothing has been solved regarding Europe’s debt issue” said Lee Jung Hyun, a currency dealer at the Industrial Bank of Korea in Seoul. “Still, the government has shown its will to prevent the currency from falling below the 1,200 level, which will make investors cautious about betting on a strong dollar.”

Tumbling Markets Make Quarterly Sales Harder for Italy, Spain: Euro Credit (Source: Bloomberg)
Spain and Italy face a tricky final quarter among the euro-area nations with most bonds left to sell as they try to lure investors amid falling prices. The European Central Bank began purchasing securities of the region’s third- and fourth-largest economies on Aug. 8 after debt-crisis contagion sent borrowing costs up to euro-era records. Still, Italy and Spain may have to trim supply, count on investors to reinvest maturing-bond proceeds and use cash raised from state-asset sales to see them through the final three months of the year, strategists at Barclays Capital and UBS AG said. “The next quarter will be very difficult for Italy and Spain -- every single auction will be scrutinized,” said Nicola Marinelli, a London-based fund manager at Glendevon King Asset Management, which oversees $153 million. “If the market knows you have to refinance in this kind of environment, then it is going to be tough. If there is any hint that the ECB isn't standing behind the bonds, then the auctions will be disasters.”

‘Barrier’ Around Greece Needed: Merkel (Source: Bloomberg)
German Chancellor Angela Merkel said euro-region leaders must erect a firewall around Greece to avert a cascade of market attacks on other European states that would risk breaking up the currency area. Expanding the powers of the region’s rescue fund, the European Financial Stability Facility, as agreed by European leaders in July is necessary to avoid Greece’s problems from spilling over to other countries, Merkel said late yesterday on ARD television. The fund’s permanent successor, due to take effect in mid-2013, is needed “so we can in fact let a state go insolvent” if it can’t pay its bills. “We have to be in a position to react,” Merkel said. “We have to be able to put up a barrier.” Even so, “I don’t rule out at all that at some point we will have the question whether one can do an insolvency of states just like with banks.” She made no mention of setting up the permanent fund before 2013.

Euro Trading Above Average Since 1999 Debut Undermines Calls for Collapse (Source: Bloomberg)
For all the concern about sovereign default in Europe, the euro remains above its average since being created almost 12 years ago, a sign that foreign-exchange traders see little chance of a collapse as officials step up efforts to keep the debt crisis from expanding. “Too much political and ideological capital has been invested into making the euro project work and bringing the continent of Europe closer together since the end of World War II to allow it to unravel now,” Thanos Papasavvas, the head of currency management in London at Investec Asset Management Ltd., which invests about $95 billion, said in a Sept. 20 interview. Investors from billionaire George Soros, whose $10 billion bet in 1992 preceded the Bank of England’s devaluation of the pound, to John Taylor, who runs the world’s biggest currency hedge fund, have predicted the euro’s breakup or forecast it will slump to parity with the dollar.

Europe Faces Pressure From Geithner, Soros to Defuse Sovereign Debt Crisis (Source: Bloomberg)
European policy makers faced mounting pressure from foreign counterparts and investors to step up efforts to prevent their sovereign debt crisis from further roiling the world’s financial markets and economy. U.S. Treasury Secretary Timothy F. Geithner set the tone at the annual meeting of the International Monetary Fund in Washington by warning that failure to combat the Greek-led turmoil threatened “cascading default, bank runs and catastrophic risk.” Billionaire investor George Soros said “something needs to be done” to safeguard Europe’s banks because Greece may be unable to avoid default. Such calls leave European policy makers under pressure to further boost the ammunition of their regional rescue fund even as parliaments focus on ratifying a July plan to broaden its powers. Trading resumes tomorrow after global stocks entered their first bear market in two years last week on concern Greek insolvency is inevitable and Europe can’t contain the damage.

Euro Slumps Amid Concern About Sovereign Debt, Before Germany’s Ifo Report (Source: Bloomberg)
The euro slumped versus most of its 16 major peers before a German report that may show business confidence in Europe’s biggest economy fell to a 15-month low, fanning concern the region’s economy is deteriorating. The 17-nation currency was 0.4 percent from a decade low against the yen as Belgium prepares to sell bonds today amid concern the euro region’s debt crisis is spreading. It declined against the dollar as Greece awaits a decision on its next round of rescue funding. New Zealand’s currency fell versus the majority of its most-traded counterparts after the country posted a wider-than-estimated trade deficit, and Asian stocks dropped, sapping demand for higher-yielding assets.
“It’s certain that the debt crisis is causing an economic slowdown in Europe and that’s the main reason for selling the euro,” said Daisuke Karakama, a market economist in Tokyo at Mizuho Corporate Bank Ltd., a unit of Japan’s third-biggest bank by market value. “We can’t buy the euro because its economy is the weakest among the U.S., Europe and Japan.”

ECB May Take More Steps If Economic Outlook Worsens, Estonia’s Kaasik Says (Source: Bloomberg)
The European Central Bank may take further steps to support the region’s economy, including cutting interest rates, if the economic outlook worsens, Estonia’s Deputy Central Bank Governor Ulo Kaasik said. While the current ECB economic forecasts don’t warrant moving “very quickly” on interest rates, “if the situation changes we are ready to change our opinion as well,” Kaasik said in an interview in Washington today. Kaasik, whose country joined the euro region this year, said the ECB doesn’t pre- commit on interest rate decisions. Kaasik’s remarks follow indications by ECB Governing Council members Ewald Nowotny and Luc Coene in the past few days that the central bank could step up efforts to boost growth and ease financial-market tensions as early as next month. The latest ECB growth forecasts that came out Sept. 8 were made in August when not all information was available to gauge the strength of European growth, Kaasik said. Nowotny today suggested he expects further downward revisions.

JPMorgan’s Kasman Sees Greek Depression Coming That Will Damage All Europe (Source: Bloomberg)
JPMorgan Chase & Co. (JPM) chief Economist Bruce Kasman said Greece is insolvent and headed toward a depression that will cause catastrophic damage across Europe. “We have a social contract that’s been broken between Greece and the rest of the region,” Kasman said today during a panel discussion at the Institute of International Finance annual meeting in Washington. “Greece is insolvent and the European Union needs to deal with that. It hasn’t yet come to terms with that.” Kasman said the uncoordinated and sporadic response from the region’s political leaders has “fed fears” in the markets that they don’t have the wherewithal to deal with the region’s fiscal problems. The lack of clarity in solving Greece’s credit problems has exacerbated the problem.

European Stocks Decline as Fed Sees ‘Significant’ Global Economic Risks (Source: Bloomberg)
The International Monetary Fund’s $384 billion lending chest may not be enough to meet all loan requests if the global economy worsens, Managing Director Christine Lagarde said. “The fund’s credibility, and hence effectiveness, rests on its perceived capacity to cope with worst-case scenarios,” Lagarde said in an “action plan” distributed to the IMF steering committee today. The current lending capacity “looks comfortable today but pales in comparison with the potential financing needs of vulnerable countries and crisis bystanders.” Tripling IMF resources was part of the Group of 20 leaders’ response to the global recession in 2009. As the European debt crisis threatens to spread and further damp the global recovery, the IMF was asked by its steering committee today to review whether its resources are sufficient.

Prasarn Signals Less Pressure for Thai Rate Rise on Growth Risk (Source: Bloomberg)
Thailand’s central bank may cut its economic growth projections as the global recovery falters, Governor Prasarn Trairatvorakul said, signaling there may be less scope for interest rates to rise further. Inflation expectations aren’t likely to increase and the Bank of Thailand has “closed the gap somewhat” on normalizing borrowing costs, Prasarn said in an interview in Washington on Sept. 24. The bank is due to unveil forecasts next month. Europe’s debt crisis and a weakening U.S. recovery are threatening growth in Asia, prompting central banks from South Korea to the Philippines to refrain from rate increases in recent months. The Bank of Thailand bucked that trend by raising its key rate for a seventh straight meeting last month, citing inflation risks posed by the government’s plan to raise wages and support rice prices.

Australia ‘Rock Solid’ Amid Europe Crisis: Swan (Source: Bloomberg)
Australia is facing the current global economic turmoil from a position of strength, with low unemployment, a strong banking system and a big investment pipeline, Treasurer Wayne Swan said. “The international economy has entered a dangerous new phase,” Swan wrote in his weekly e-mailed economic note yesterday. Australia’s “successful response to the global financial crisis and record of economic reform means our fundamentals today are rock solid.” Global markets are in turmoil on fears that a default by Greece will exacerbate an 18-month debt crisis and tip Europe and the global economy back into recession. The International Monetary Fund cut its forecast for global economic growth this month and predicted “severe” repercussions if Europe fails to contain its debt crisis or if U.S. policy makers reach an impasse over a fiscal plan.

20110926 1108 Global Commodities Related News.

Commodities Fall to Nine-Month Low in ‘Downward Spiral’ on Economic Woes (Source: Bloomberg)
Commodities fell to a nine-month low, led by routs in metals, on deepening concern that governments are running out of tools to avert a global recession, eroding prospects for raw-material demand. European officials may accelerate the setup of a permanent rescue fund as the sovereign-debt crisis mounts. On Sept. 21, the Federal Reserve said the U.S. economy faces “significant downside risks.” In the next two days, gold plunged the most since 1983, and copper had the biggest slide in almost three years. Today, silver posted the largest drop in 32 years. “We’re in a downward spiral, and no one knows when it’s going to end,” said Robin Bhar, an analyst at Credit Agricole SA in London. “There is a lot of uncertainty at this time as to how demand will develop.”

Corn (Source: CME)
US corn futures closed down near session lows on worries about the global economy and harvest pressure. Corn fell along with soybeans and most other commodities as speculators are fleeing amid worries about the world economy and downward technical momentum. A weakening economy could hurt demand, though traders say end users will likely use the break in corn prices to bargain hunt, particularly with supplies expected to remain tight. Traders note seasonal pressure from the ongoing harvest. December CBOT corn ends down 11 1/2c at $6.38 1/2 a bushel, down 7.7% for the week. Front-month corn has slid 16% since Aug. 30.

Wheat (Source: CME)
US wheat futures finished higher, supported by concerns that dry weather will reduce global output. Crops in Argentina and Ukraine are suffering from "notable stress" due to the lack of significant rain, according to meteorologists at Cropcast Ag Services. Meanwhile, the southern US Plains remains too dry as farmers attempt to plant the next crop. CBOT December wheat jumps 7c to $6.40 3/4 a bushel, KCBT December wheat rises 10 1/4c to $7.31 1/4 and MGEX December surges 31c to $8.51.US wheat futures ended with steep losses on spillover pressure from corn. The grains are linked since both are used for livestock feed. Yet, wheat prices lack the strength to advance on their own because of poor foreign demand. Increased output and exports from Russia have reduced demand for US wheat. CBOT December wheat drops 25 1/4c to $7.02 a bushel; KCBT December loses 23 1/2c to $8.02 1/2 a bushel and MGEX December slides 24 3/4c to $8.76 3/4.

Rice (Source: CME)
US rice futures closed down as economic jitters and losses in external markets continue to weigh on prices. The nearby contract is down nearly 10% from the 3-year high set last week. Traders next week will wait for the USDA to issue grain inventory-and-output estimates. It may be difficult for the data to knock down prices, given the steep recent losses, traders say. CBOT November rice drops 18c to $16.48 1/2 per hundredweight.

China's corn imports to surge, self-sufficiency policy hit
CHANGCHUN, China, Sept 22 (Reuters) - China's much-vaunted policy of self-sufficiency in corn production is under threat from scarce water supplies and shrinking farmlands, making imports inevitable in the face of rapidly growing demand, traders and officials said on Thursday.
China is the world's second largest corn consumer and producer, and it uses the grain largely for animal feed.

China corn demand set for a dip? Gavin Maguire (Source: Reuters)
--Gavin Maguire is a Reuters market analyst. The views expressed are his own. To get his real-time views on the market, please join the Global Ags Forum. -- CHICAGO, Sep 23 (Reuters) - One of the defining features of the corn market's bullish narrative in 2011 was that China was on the prowl for additional corn supplies after domestic production struggled to keep pace with soaring demand from livestock feeders and processors.
But with Chinese domestic corn prices trading at a record premium to Chinese wheat values, it is likely that the feeding industry in China will ramp up wheat consumption at corn's expense going forward, to potentially redraw the country's grain demand landscape into 2012 and beyond.

US wheat rebounds, corn firm on bargain hunting
SINGAPORE, Sept 23 (Reuters) - U.S. wheat rose more than 1 percent, while corn firmed as bargain hunting by end-users supported grains, which slid in the previous session to their lowest in more than two months amid recession fears.
"It is certainly going to start interest among consumers -- last night we saw Egyptians back in the market taking a big chunk of the Russian wheat once again," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia in Sydney.

Australia govt to further deregulate wheat exports
CANBERRA, Sept 23 (Reuters) - Australia will abolish its wheat export regulator and a levy on all wheat exports from September 30, 2012, Agriculture Minister Joe Ludwig said on Friday, as the country moves to further deregulate its wheat exports market.
However, the changes will be 12 months later than recommended by a major report into wheat exports, which had wanted the export regulator Wheat Exports Australia (WEA) and a 22 cents a tonne export levy abolished from September 30 of this year.

China corn processors, hit by tight supply, look for options
CHANGCHUN, Sept 23 (Reuters) - China's Dacheng Industry Group, the parent of Global Bio-Chem , said it would invest in Russia to expand its business while the world's second-largest corn consumer adjusts to tight supplies of the grain at home, a company executive told Reuters.
The company, Asia's largest corn processor, together with other major domestic players, have been ordered to halt corn purchases temporarily early in the year in order to make way for state purchases to replenish government reserves.

Argentina dryness seen hurting wheat; corn better
BUENOS AIRES, Sept 22 (Reuters) - Dry weather in Argentina has dimmed the outlook for 2011/12 wheat output although rains in recent days have allowed progress on delayed corn sowing, the government and a grains exchange said on Thursday.
Farmers in the South American country, a leading global wheat exporter and the No. 2 corn supplier, have dedicated almost 3 percent more land to wheat this season, according to Agriculture Ministry estimates.

Argentine gov't sees new wheat crop at 11-13 mln T
BUENOS AIRES, Sept 22 (Reuters) - Argentina's 2011/12 wheat crop is seen at between 11 million and 13 million tonnes, down from 14.7 million tonnes in the prior season, the Agriculture Ministry said in a monthly report on Thursday.
The government raised its forecast for 2010/11 corn output to a record 22.9 million tonnes from 21.9 million tonnes previously. It did not give an estimate for 2011/12 corn, which farmers are already seeding.

EU cleared 213,000 tonnes wheat exports this week
PARIS, Sept 22 (Reuters) - The European Union this week granted export licences for 213,000 tonnes of soft wheat, taking the total since the beginning of the 2011/12 (July-June) season to 3.1 million tonnes, official data showed on Thursday.
The export volume remained well below the level seen last season when 5.3 million tonnes of export licences were cleared by the same stage.

Bangladesh to buy wheat from Ukraine at $320/T
DHAKA, Sept 22 (Reuters) - Bangladesh will import 100,000 tonnes of wheat from Ukraine at $320 a tonne, including CIF, in its first government-to-government wheat deal with Kiev, a top procurement official said on Thursday.
"We have already signed the deal and shipment will start soon," Ahmed Hossain Khan, director general of the state grain buyer, told Reuters.

US wheat farmers on edge as Plains drought threatens
CHICAGO, Sept 22 (Reuters) - Winter wheat growers in the U.S. Plains hard red winter wheat growing region remain on edge as they seed the 2012 crop amid a devastating drought, an agricultural meteorologist said Thursday.
"There has been some rain over the last week that may get the crop out of the ground, but it will wither unless they get some more significant rains in October," said Andy Karst, meteorologist for World Weather Inc.

Kazakh grain crop could hit 25 mln T-AgMin official
ASTANA, Sept 22 (Reuters) - Kazakhstan's 2011 grain harvest could approach 25 million tonnes by bunker weight as good weather and better yields promise a record crop for the Central Asian state, an Agriculture Ministry official said on Thursday.
Kazakhstan, the world's seventh or eighth-largest wheat exporter in a typical season, will subsidise exports this season to regain a foothold in Black Sea markets and help clear a potential grain glut at home.

Algeria grain harvest is 4.2 mln T --official figure
ALGIERS, Sept 22 (Reuters) - Algeria's grain harvest this year was 4.2 million tonnes, Agriculture Minister Rachid Benaissa said on Thursday, in line with an estimate given last month.
Asked by Reuters to give a final figure for the harvest, Benaissa said it was 42 million quintals, or 4.2 million tonnes. The crop is down from last year's harvest of 4.5 million tonnes because of drought in some growing areas.

India rains pick up in past week, monsoon withdrawal eyed
NEW DELHI, Sept 22 (Reuters) - India's monsoon rains were 29 percent above normal in the week to Sept. 21, strengthening from 1 percent above average in the previous week, the weather office said on Thursday, adding the rains may start their withdrawal after a couple of days.
The monsoon rains were 4 percent above average since the start of the June-September season, in line with the weather office's latest forecast of a normal monsoon in 2011, which means rains of 96 to 104 percent of a long-term average.

Bangladesh rain-fed rice output seen at record high; imports seen lower
DHAKA, Sept 22 (Reuters) - Bangladesh's rain-fed rice output is expected to rise 4 percent to hit a record 13.3 million tonnes, farm officials said, indicating the country won't need to increase costly imports.
The government may need to import at most 500,000 tonnes of rice in the year to June 2012 on higher domestic stocks and good crops, compared with 1.3 million tonnes the previous year.

IGC Ups Australia 2011-12 Wheat Output Forecast (Source: CME)
The International Grains Council raised Australia's 2011-12 wheat output forecast to 25.5 million metric tons from a previous estimate of 24.5 million tons, on the back of good weather and higher acreage. It is still lower than an estimated production of 26.3 million tons in the marketing year ending Sept. 30. The council raised the forecast for ending stocks on Sept. 30, 2012 by 12% to 7.4 million tons compared with 6.8 million tons this year. The council's wheat export estimate is also higher at 18 million tons. Australia's wheat stocks have been rising due to cheaper exports by Pakistan, India, Ukraine and Russia and a bumper domestic crop.

Informa Predicts 2.2% Rise In US Corn Plantings (Source: CME)
Informa Economics, a closely watched crop forecaster, predicted that U.S. farmers will increase corn plantings 2.2% next year after prices reached record highs this summer, according to traders. The firm estimated corn plantings will rise to 94.3 million acres from the 92.3 million acres planted this year, traders said. It projected soybean plantings will jump 1.1% to 75.8 million acres and wheat plantings will rise 2.5% at 56.6 million acres. Farmers are expected to plant more of the crops to take advantage of high prices. Prices for U.S. corn remain at historic highs after hitting a record in June, fueled by concerns production won't keep pace with strong demand. Corn for December delivery recently traded down 0.4% at $6.47 1/2 a bushel at the Chicago Board of Trade.
Informa also issued estimates for U.S. wheat production, pegging the 2011 harvest at 2.044 billion bushels, traders said. That is down from 2.208 billion bushels last year and slightly below the U.S. Department of Agriculture's forecast for a harvest of 2.077 billion bushels this year. Informa estimated output of hard red spring wheat in 2011 at 444 million bushels and output of hard red winter wheat at 782 million bushels, traders said. The USDA recently pegged hard spring wheat output at 475 million bushels and hard red winter wheat output at 794 million bushels. Informa estimated the 2011 soft red winter wheat crop at 460 million bushels, above the USDA's latest estimate for 452 million bushels, traders said. The USDA is slated to update its wheat output estimates on Sept. 29.

China May Sharply Hike Corn Imports (Source: CME)
Domestic and global grain organizations are citing increasing pressure on China's corn inventories and a widening production shortfall as evidence of potentially sharply higher corn imports in the coming years, despite Beijing's self-sufficiency goals. China turned net corn importer last year for the first time in 15 years amid soaring demand for meat and eggs, and analysts increasingly see few options for the government but to sharply raise corn imports. China limits annual corn imports to 7.2 million metric tons to protect what it perceives to be a strategic need to feed its population using domestic resources. However, a senior official with the state-backed China Feed Industry Association told an industry conference Thursday that China will likely face a shortfall in domestic corn output versus consumption of around 15 million tons by 2015.
In four years, output is expected to reach 205 million tons, compared with 180 million tons estimated in 2011, but overall demand would likely reach 220 million tons by then, association Executive Deputy President Li Xirong said in a transcript published by the Dalian Commodity Exchange. "It's very hard to produce 205 million tons by 2015," Li said, citing challenges to increasing acreage and yields. The U.S. Grains Council estimated China could absorb 8 million tons of corn imports even at the government's current self-sufficiency rate of 95%. The council projected that China could allow for as much as 16 million tons of corn imports if it lowers its self-sufficiency rate to 90%. "There is occasional talk in China about what level of self-sufficiency they can accept, and 95% is often mentioned, along with the idea that maybe they can settle for 90%," the council noted.
Such a volume would be a sharp rise from China's total corn imports last year of 1.57 million tons, which in turn rose from from just 83,582 tons in 2009. China imported 452,799 tons in the first eight months this year, though analysts say another 2 million tons may have been booked for shipment after October. Inflation and tight supplies have taken China spot prices up 33% in the year to date, while U.S. futures prices rose just 0.8%.

Soybean Meal Exports From India to Climb 25% on Bigger Crop, Adani Says (Source: Bloomberg)
Soybean meal exports from India, Asia’s largest supplier of animal feed, may climb 25 percent next year as domestic oilseed output surges, according to Adani Wilmar Ltd., a processor and exporter. Shipments may surge to 5 million metric tons in the year beginning Nov. 1, from an estimated 4 million tons this year, Atul Chaturvedi, chief executive officer, told reporters in Mumbai today. Traders likely sold 250,000 tons to 300,000 tons of soybean meal from the new crop, less than the 700,000 tons contracted to export a year earlier, he said. Crude palm oil imports by India have “dried up” in recent days after Indonesia announced a cut in tax on exports of refined palm oil products, Chaturvedi said. The country may import 8.5 million tons to 8.8 million tons of edible oils in the year beginning Nov. 1, he said.

Argentina Sees 2011-12 Corn Area At 4.9M Hecs (Source: CME)
Argentina's 2011-12 corn area is expected to jump to 4.9 million hectares, up from 4.6 million hectares last season, the Agriculture Ministry said. The forecast is the first from the government for this season's corn crop. So far 10% of the fields expected to go to corn have been seeded, the Ministry said in its weekly crop report. Argentina is the world's second largest corn exporter. The ministry also made its first forecast of sunflower seed area, pegging area at 1.7 million hectares, virtually unchanged from last season. So far, 17% of the expected sunflower seed area has been seeded. Argentina is a leading exporter of wheat and sunflower seed oil.

ICE sugar, cocoa, coffee up in commodity bounce
LONDON, Sept 23 (Reuters) - ICE raw sugar, cocoa and arabica coffee futures bounced in early trade, as commodity markets rebounded following the previous session's sharp sell off, with the worsening global economic outlook weighing on investor sentiment.
Fresh inquires emerged after New York sugar futures dropped to their weakest since June on fears of a global recession, while Indian whites weakened as competition from Brazil intensified, dealers said.

India cotton exports seen up 17 pct over govt f'cast
MUMBAI, Sept 21 (Reuters) - India's cotton exports could rise 17 percent over an official forecast in the year to September 2012 to 1.4 million tonnes, spurred by a record harvest, a weaker domestic currency and a freer trade policy, the top exporter of the fibre said.
India contributes 22 percent of global output and is expected to have a bumper harvest of 6.14 million tonnes, pushing it into competition with suppliers from Latin America, Australia and Africa, that will squeeze world prices.

German WVZ to stop publishing first beet sugar content
HAMBURG, Sept 22 (Reuters) - Initial national sugar content of the German sugar beet crop will no longer be published, the association of German sugar producers WVZ said on Thursday.
The association traditionally starts the sugar harvest season in September by announcing national sugar content of tests from plantings which are broken down according to the German regional states involved.

Ivory Coast Aims to Boost World Cocoa Market Share to 50%, President Says (Source: Bloomberg)
Ivory Coast, the world’s largest- producer of cocoa, aims to increase its share of the world market to 50 percent as the West African country recovers from a civil war. Reform of the cocoa industry “will be implemented in the next month or two,” President Alassane Ouattara said in an interview today in New York. “We will liberalize the whole chain” and attract investment so that cocoa is processed in the country, he said. The country produces about one-third of global cocoa output. World prices for the commodity shot up to a 32-year high during the four months of violence between Ouattara and those loyal to his predecessor, Laurent Gbagbo. Gbagbo ruled Ivory Coast for a decade and refused to cede power after losing the presidency in a November election.

CN Rail says coal exports steady, no recession signs
Sept 22 (Reuters) - Canadian National Railway Co  sees no drop in coal exports nor signs of a double-dip recession even though it expects years of sluggish economic growth ahead, its CEO said on Thursday.
Coal shares slid on Wednesday after U.S. coal miner Alpha Natural Resources Inc  cut its 2011 shipment forecast, citing reduced demand in the Asian steel market, among other things. The news came as the U.S. Federal Reserve shook global markets with pessimistic language about the economic outlook.

Euro Coal-Prices stable despite general slump
LONDON, Sept 22 (Reuters) - Prompt physical coal prices were little changed on Thursday although swaps fell by over $1 in line with the slump in world stocks by more than 4 percent.
A grim economic outlook from the U.S. Federal Reserve and signs of slowing growth in China and Germany triggered the stocks plunge.

Brent crude rises to $106, investors buy on dips
SINGAPORE, Sept 23 (Reuters) - Brent crude rose to $106 on Friday as investors stocked up, taking advantage of a plunge in the previous session that pushed prices to their lowest since early August.
"It is just a short-covering rally that we are seeing today," said Jonathan Barratt, managing director for Commodity Broking Services in Sydney.

China oil refiners lost $751 mln in July - NDRC
BEIJING, Sept 23 (Reuters) - China's oil refining industry recorded a loss of 4.8 billion yuan ($751 million) in July because of high crude prices and rising selling costs, the National Development and Reform Commission said on Friday.
The industry posted a profit of just 2.4 billion yuan for the first seven months, down 93.5 percent from a year earlier, the commission said in a report on its website.

Oil Rebounds From Six-Week Low in New York Trading; Brent Premium Narrows (Source: Bloomberg)
Oil rose from a six-week low in New York as investors speculated European policy makers will step up measures to ease a sovereign debt crisis that has disrupted financial markets and slowed the economy, curbing fuel demand. Futures increased as much as 1.3 percent, climbing for the first day in four. European policy makers were pressured at the annual meeting of the International Monetary Fund in Washington to boost their regional rescue fund. U.S. Treasury Secretary Timothy F. Geithner said that governments must unite with the European Central Bank to “create a firewall against further contagion” and defuse the “most serious risk now confronting the world economy.” Brent oil’s premium to U.S. prices narrowed for a second day. “I think everyone now fully understands the implications of Greece defaulting,” said Jonathan Barratt, a managing director of Commodity Broking Services Pty in Sydney. “The key is whether or not the market believes that this sort of support will actually work.”

Iron Ore-Shanghai rebar hits fresh contract low, ore falls
SHANGHAI, Sept 23 (Reuters) - Shanghai rebar futures fell more than 1.5 percent on Friday, with the most-active January contract hitting a fresh low, as an overnight slump in world stocks and commodities prices added to investors' jitters about the state of the global economy.
January benchmark rebar on the Shanghai Futures Exchange  fell to 4,465 yuan ($699) a tonne, the contract's lowest ever, tracking losses in the equities and commodities markets.

China steel futures sag to contract low on weak econ view
MANILA, Sept 22 (Reuters) - Shanghai rebar steel futures slid as much as 1.7 percent on Thursday, sending the most active January contract to its weakest ever level, in line with losses in other commodities driven by a deteriorating outlook for the global economy.
The Federal Reserve on Wednesday warned of significant risks to the already weak U.S. economy and launched a new plan to lower long-term borrowing costs and bolster the battered housing market.

Europe steel production: the boom is over
LONDON, Sept 20 (Reuters) - European steelmakers will be forced to cut crude steel capacity utilisation and may idle some furnaces in the next few months, after producing at high levels in the first half this year, as weaker demand, prices and destocking hit their sales.
Last spring, crude steel production in Europe was accelerating and it seemed that the industry was slowly but surely sailing back towards record levels last hit in 2008.

METALS-LME copper falls to 1-yr low as sell-off grows
MANILA, Sept 23 (Reuters) - London copper extended losses to hit its lowest in a year and is on course for its steepest weekly loss since December 2008 as a lethargic global economy fueled another round of selling.
"At this stage it's very sentiment driven, and sentiment right now is bearish. The market is focusing on the macroeconomic environment, which is not very positive," said Natalie Robertson, an analyst at Australia and New Zealand Bank.

PRECIOUS-Gold heads for third weekly drop on firm dollar
SINGAPORE, Sept 23 (Reuters) - Gold edged up 0.4 percent after the previous day's drop, but remains on track for a third straight week of decline as investors worried about grim global growth outlook piled into the dollar, which weighs on bullion prices.  
"The dollar has strengthened in all of this and everyone is de-risking and putting money into the dollar because of the deteriorating economic outlook," said Soozhana Choi, head of commodity research in Asia at Deutsche Bank in Singapore.

Gold Plunges More Than $100 as Investors Sell (Source: Bloomberg)
Gold fell, capping the biggest two- day plunge since 1983, on investor sales following routs in global equity and commodity markets. More than $3.4 trillion has been erased from equity values this week, sending a global measure of shares into a bear market, on concern that governments are running out of tools to avert a recession. The Standard & Poor’s GSCI Index of 24 commodities fell to a nine-month low today. Gold has dropped 15 percent since reaching a record $1,923.70 an ounce on Sept. 6. “Gold has become the source of liquidity for global margin calls,” said Michael A. Gayed, the chief investment strategist at Pension Partners LLC. “Also, deflationary pressures are acting on gold.”

Baltic index rises, world economy woes watched
LONDON, Sept 22 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, rose for a third session on Thursday helped by firm cargo demand from Asia.  
Brokers said growing vessel supply, which was outpacing commodity demand, was set to cap dry bulk freight rate gains in the coming months with growing challenges to the world economy adding to headwinds.    

20110926 1107 Soy Oil & Palm Oil Related News.

ITS CPO export down 11.9% to 1,199,492 tonnes for the period of 1~25 Sep 2011.
SGS CPO export down 11.8% to 1,204,124 tonnes for the period of 1~25 Sep 2011.

Soybeans (Source: CME)
US soybean futures ended at a fresh year-to-date low as economic woes and weak external markets pressure prices. Nearby contract lost 7% this week as funds liquidated long positions and is down nearly 14% from a three-year high set in late August. Setback is likely nearly finished, as soybeans are reaching a value that will attract buyers, analysts say. "We've got to get through the liquidation before we can turn [the market] around. I think we're close," says Dale Durchholz of AgriVisor. CBOT November soybeans sink 25c to $12.58/bushel.

Soybean Meal/Oil (Source: CME)
The pressure on soybeans sent December soymeal down $5 to close at $330.10/short ton, with December soyoil slipping 1.3c to 52.64c/pound.

Palm Oil Seen Dropping to One-Year Low as Supplies Increase, Mistry Says (Source: Bloomberg)
Palm oil may tumble to as low as 2,800 ringgit ($880) a metric ton in the next five to eight weeks, the lowest level in almost a year, as output jumps in Malaysia and Indonesia, the largest growers, according to Dorab Mistry, director of Godrej International Ltd. Futures in Malaysia will trade between 2,800 ringgit and 3,100 ringgit a ton until mid-November, Mistry said in remarks prepared for the Globoil conference in Mumbai today. The commodity, which has lost 21 percent this year, last traded at less than 2,800 ringgit in October 2010. Lower palm oil prices may curb world food prices that the United Nations predicts will stay at historically high levels this year and ease pressure on central banks to raise interest rates. Commodities fell to a nine-month low on Sept. 23 on deepening concern that governments are running out of tools to avert a global recession, eroding demand for raw-materials.

India May Face Refined Palmoil Import Shortfall (Source: CME)
India may face a shortage in refined palm oil imports in the next three months as leading supplier Indonesia doesn't have the capacity to meet a likely surge in demand following tax cuts on its product, leading vegetable oil analyst Dorab Mistry said. "Indonesia will expand [its refining capacity] in future, but it will take at least two years to meet [India's] demand," he told reporters on the sidelines of Globoil annual conference on the vegetable oil industry. Indonesia, the world's biggest palm oil producer and exporter, has reduced its export tax on refined, bleached and deodorized palm olein in bulk to 8% from 15% and raised the duty on crude palm oil to 16.5% from 15% effective Sept. 15 to encourage domestic refining. India is the world's largest importer of vegetable oil and imports mainly from Indonesia and Malaysia.
The country imports about 6 million tons of palm oil. With Indonesia slashing the export tax on refined edible oil, Indian industry is apprehensive that this may lead to a surge in imports, affecting Indian refiners. India has an edible oil refining capacity of 20 million metric tons a year and imports almost 80% of its edible oil requirement as crude oil. Higher imports of refined products will hurt local refiners. The price difference between crude palm oil and refined palm oil has now narrowed to $40/ton from $80-$100/ton before the tax cut by Indonesia, Mistry said. Earlier last week, India's edible oil industry sought a hike in the import tax on refined palm oil to 16.5% in a bid to control imports from Indonesia and to encourage local oilseeds crushing. India's food ministry is backing local refiners' demand for a higher import tax on refined edible oil to prevent cheap foreign supplies from flooding the market.
"We have put up the matter before the ministries of finance as well as trade for taking a holistic view," Food Minister K.V. Thomas said on the sidelines of an edible oil conference. The ministry has also favored the industry's demand for increasing the base value on which import tax is calculated. The base value is currently $484/ton for refined palm oil, much lower than the market price of about $1,200/ton. Mistry said if the Indian government raises the base tariff value of refined palm oil to the current price level, it may be viable for importers to continue crude palm oil imports. USDA Raises Price View For Beef, Eggs

Global recession jitters drive palm oil to month low
KUALA LUMPUR, Sept 23 (Reuters) - Malaysian palm oil futures fell to their lowest in nearly a month as commodity markets across the board went into freefall on prospects of a global economic slowdown eroding commodity demand growth.
"The main focus is the world economy for the market and to some extent, the Globoil conference," said a trader with a local brokerage in Kuala Lumpur.

Brazil soy growers start planting in isolated rain
SAO PAULO, Sept 22 (Reuters) - Brazilian soy farmers in the No. 1 growing state of Mato Grosso have begun planting the new crop after some isolated rains and predictions for more moisture to come in early October, forecasters Somar said Thursday.
The official planting season for soy started Sept. 15 in the state, but the weather has been widely dry over the center-west region that normally kicks off planting in Brazil.

Exporters sell 180,000T US soybeans to China-USDA
WASHINGTON, Sept 22 (Reuters) - Private exporters reported the sale of 180,000 tonnes of U.S. soybeans to China for delivery this marketing year, said the Agriculture Department on Thursday.
It was the second soybean sale to China in two days. On Wednesday, exporters reported the sale of 120,000 tonnes, also for delivery during the 2011/12 marketing year, which opened on Sept 1.

Indonesia's palm oil taxes, erratic weather to dominate Indian conference
MUMBAI, Sept 23 (Reuters) - Global edible oil traders are anxiously awaiting top buyer India's response to lower export taxes from major palm oil producer Indonesia after bitter complaints from local refiners that they would soon be out of business.
At the annual Globoil industry meeting that starts in Mumbai on Friday, the La Nina weather pattern is also expected to be a dominant topic after forecasts it will inundate Southeast Asia -- the biggest palm oil producing region -- in a few months, possibly reducing output as demand from China and India rises.