Thursday, September 29, 2011

20110929 1814 FCPO EOD Daily Chart Study.

FCPO closed : 2898, changed : -12 points, volume : lower.
Bollinger band reading : downside biased with possible pullback correction.
MACD Histrogram : falling lower, seller in control.
Support : 2850, 2800, 2770, 2750 level.
Resistance : 2900, 2920, 2950, 2970 level.
Comment :
FCPO closed recorded small loss with lesser volume changed hand. Overnight soy oil ended significantly lower and currently trading between gains and losses while crude oil currently rebounding higher.
Overnight market sentiment turned negative as concern on sluggish demand due to weak global economy outlook resulted broad commodities to trade lower while on news wise, Reuters reported that Indonesia agriculture minister expect that its crude palm oil export to fall and looking forward to boots biofuels and crude palm oil downstream industry development.
Back home FCPO closed recorded small loss ahead of tomorrow export data report.
Daily chart formed a wide range up bar candle closed at near lower Bollinger band level after market opened gap down, tested lower support level and recover upward before moved side way range bound towards the end to closed near the high of the day.
Chart study 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 resistant or strength with quick cut loss and profit target.

20110929 1749 FKLI EOD Daily Chart Study.

FKLI closed : 1393, changed : +27 points, volume : lower.
Bollinger band reading : pullback correction downside biased.
MACD Histrogram : recovering, seller closing position.
Support : 1385, 1375, 1360, 1350 level.
Resistance : 1395, 1400, 1420, 1430 level.
Comment :
FKLI rallied closed recorded huge gains with decreasing volume transacted doing 5.5 points premium compare to cash market that also soared higher. Overnight U.S. market closed lower and today's Asia markets ended mostly higher(with Hang Seng market closed due to typhoon) while European markets currently trading higher.
News wise, German reported lower than economist forecast unemployment while market seems hopeful on German lawmakers vote on Greece rescue plan to pass through resulted most regional market to trade little higher. Back home, FKLI and cash market recorded substantial gains as seller closing position and also probably due to 3rd quater window dressing activities.
Daily chart formed a wide range up bar candle closed nearer to middle Bollinger band level after market opened lower and edge upwards all the way to closed at the higher of the day.
Chart study remained suggesting a pullback correction downside biased market development potentially testing higher resistance level near middle Bollinger band 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.

20110929 1747 Regional Markets EOD Daily Chart Study.

DJIA chart reading : side way range bound little downside biased.
KLCI chart reading : pullback correction downside biased.

20110929 1605 Global Market & Commodities Related News.

China’s Stocks Sink to 14-Month Low as Investors Predict Economic Slowdown (Bloomberg)
China’s stocks fell, sending the benchmark index to a 14-month low, on concern economic growth will slow as the government maintains measures to curb inflation and demand for exports falters in Europe and the U.S. Jiangxi Copper Co. and Aluminum Corp. of China Ltd. paced declines by commodity producers after metal prices dropped. Shanghai Friendship Group Co. and Dashang Group Co. retreated more than 2 percent among consumer-related stocks after Vice Premier Li Keqiang said the top priority will continue to be stabilizing prices. Most global investors predict Chinese growth will slow to less than 5 percent by 2016, a Bloomberg poll showed. “The European debt problem will remain hanging over the market as there’s no possibility of solving it in the near future,” said Zhang Ling, general manager at Shanghai River Fund Management Co. “That’ll continue to bring turmoil to global financial markets as the appetite for risk assets is falling.”

European Stocks Drop Amid Debt-Crisis Response Concern; U.S. Futures Gain (Bloomberg)
European stocks declined for a second day amid growing concern that policy makers are divided over how to handle the region’s debt crisis. Asian shares and U.S. index futures advanced. The Stoxx Europe 600 Index dropped 0.4 percent to 226.51 at 8:29 a.m. in London. The measure is heading for its worst quarter since 2008, having fallen 17 percent amid concern global economic growth is slowing and policy makers are struggling to contain the European debt crisis. The gauge has lost 4.6 percent this month following a 10 percent slump in August. “The European patient is ill and has already had several different medicines prescribed,” said William De Vijlder, who oversees $778 billion as the global chief investment officer of Paris-based BNP Paribas Investment Partners. “But, to the patient’s frustration, the doctors don’t seem to be able to agree on which medicine is the right one and what dose to prescribe. Fears of a recession are very much alive.”

Commodities, stocks fall on euro crisis fears
SINGAPORE, Sept 29 (Reuters) - Asian shares and commodities fell on growing worries that Europe's intractable debt problems will plunge the world  into a second global financial crisis.
"This is being driven by the clear realisation that while there are many plans as to how to deal with the Euro situation, the reality of getting agreement will be that much harder."

FOREX-Euro on track for worst qtr in more than year
TOKYO, Sept 29 (Reuters) - The euro gained on short-covering in volatile, commodity-driven trade after riskier assets bounced off intraday lows, but was still on track to mark its worst quarter since early 2010, with traders preparing for further falls.
"It's very clear to me ... sell EUR/USD, it's going down,"  said a trader for a European bank in Singapore, citing the risk of debt restructuring by Greece and the possibility that the European Central Bank may cut interest rates.

Soy at 10-month low; wheat, corn fall on economic woes
SINGAPORE, Sept 29 (Reuters) - U.S. soy slid to a new 10-month low while corn lost more ground to drop to its lowest in three months as Europe's debt crisis continued to hammer the commodity markets.
"I think the market is falling due to the economic pessimism. We still see that macroeconomic uncertainty is outweighing the fundamentals," said Lynette Tan, a grains analyst at Phillip Futures in Singapore.

Philippines' NFA head: Typhoon damage on rice worrisome
MANILA, Sept 29 (Reuters) - The head of the Philippines' grain procurement agency said on Thursday he was worried about the damage to rice crops by Typhoon Nesat and could not rule out the need to import rice soon to replenish reserves.
Reports from local governments of heavily-flooded provinces showed a bigger crop damage than the Agriculture department's initial estimates, with damage to standing rice crop in Central Luzon region alone reaching more than 103,000 tonnes, National Food Authority (NFA) Administrator Angelito Banayo told Reuters.
Cosan begins covering Santos sugar terminal
SAO PAULO, Sept 28 (Reuters) - Cosan, The world's largest sugar exporter, has begun building a long-awaited rain shield over a bulk sugar terminal in Brazil's main port of Santos, the company's CEO said on Wednesday.
The cover, which is expected to be fully operational in April 2012 -- the start of the next Brazilian cane season -- should boost the flow of sugar through Cosan's  terminal by allowing it to load in rainy weather.

Brazil could add 200 mln T cane in 2 yrs-Cosan  
SAO PAULO, Sept 28 (Reuters) - Brazil could add 200 million tonnes of cane to its crop in two seasons, simply through the recovery of existing cane yields, the chief executive of the country's largest sugar and ethanol producer Cosan  said on Wednesday.
Yields in Brazil have fallen dramatically this year due to aging cane fields that are overdue for replanting and unfavorable weather conditions during the crop development.

Mexico will not open new sugar import quota in 2011
MEXICO CITY, Sept 28 (Reuters) - Mexico does not need more sugar imports beyond the 150,000-tonne quota opened earlier this year, since there is enough supply to cover national demand, the government said on Wednesday.
"There is one (import quota) for 150,000 tonnes which is in process and right now we don't see a need for another one," Lorenza Martinez, the deputy economy minister, told Reuters.

Brazil cocoa crop to ease back after 2010 surge
BRASILIA, Sept 28 (Reuters) - Brazil's main crop cocoa harvest, which officially starts next week, will be of a fairly typical size but fall far short of last year's stellar harvest, local cocoa analyst Thomas Hartmann said on Wednesday.
Hartmann, who is based in Brazil's top cocoa state Bahia and has worked in the sector for four decades, said pod counter estimates showed the state would produce 800,000-900,000 60-kg bags compared with 1.26 million bags in 2010's main crop

India extends ban on vegoil exports - govt
NEW DELHI, Sept 28 (Reuters) - India has extended a ban on exports of vegetable oils by a year to Sept. 30, 2012, a government statement said on Wednesday, continuing its cautious approach in farm trade to ensure local supplies at moderate prices.
India, the world's biggest cooking oil importer, used to export tiny quantities of coconut and groundnut oils before the ban was imposed in early 2008.

Brent crude falls to about $103 on stockpile gain, euro crisis
SINGAPORE, Sept 29 (Reuters) - Brent crude fell to near $103 declining for a second day after a bigger-than-expected increase in U.S. stockpiles heightened concern that demand may slow and doubts over the eurozone rescue fund weighed on confidence.
"A lot has been talked about but no agreement is in place," for the eurozone, said Alvin Liew, a senior economist at UOB Research in Singapore. "The uncertainty is out there."

N. America aluminum shipments fall 1.6 pct in July
NEW YORK, Sept 28 (Reuters) - Demand for U.S. and Canadian aluminum products, measured as shipments from domestic producers plus imports, fell by 1.6 percent in July from a year earlier, and slid 8.2 percent from June, an aluminum industry group said on Wednesday.
For the year through July, however, aluminum shipments were up 6.0 percent, the report said.

Japan Aug aluminium shipments at 19-mth low
TOKYO, Sept 28 (Reuters) - Japanese shipments of aluminium products fell to their lowest level since January 2010, hit by slowing exports to Southeast Asia and China and a slower-than-expected pick up in domestic demand, an industry group said on Wednesday.
The Japan Aluminium Association data showed shipments of Japanese aluminium products fell 1.5 percent in August from a year earlier to 154,684 tonnes, down year-on-year for the third month in a row.

LME copper extends losses ahead of German vote
SHANGHAI, Sept 29 (Reuters) - Copper fell as investors worried over a German vote to beef up the euro zone's rescue fund.  
"Copper prices had been very high with very bullish news priced in, including the prospective significant re-stocking by China, which is not playing out at the moment," Citigroup analyst David Thurtell said.

Japan Aug zinc exports rise 24 pct yr/yr
TOKYO, Sept 29 (Reuters) - Japan's refined zinc exports rose 24 percent in August from a year earlier to 7,846 tonnes, climbing year-on-year for the first time since January as output gradually recovered from the massive earthquake in March.
Exports have been hit by the March 11 quake and tsunami, which shut nearly 65 percent of the country's production capacity for zinc, used in automotive steel sheet and construction materials.

China's iron ore imports seen soaring to 1 bln T
QINGDAO, China, Sept 28 (Reuters) - China's iron ore imports may surge to 1 billion tonnes by 2015, up around 60 percent from last year, with the world's biggest steel producer able to cope with a potential recession in developed economies, miners said on Wednesday.
China is the biggest buyer of the steel-making raw material and firm Chinese demand has been largely behind the strength in spot iron ore prices which, at above $170 a tonne, have trebled from late 2008.

METALS-LME copper extends losses ahead of German vote
SHANGHAI, Sept 29 (Reuters) - Copper fell  as investors worried over a German vote to beef up the euro zone's rescue fund.  
"Copper prices had been very high with very bullish news priced in, including the prospective significant re-stocking by China, which is not playing out at the moment," Citigroup analyst David Thurtell said.

PRECIOUS-Gold falls 1 pct on rising dollar, growth fears
SINGAPORE, Sept 29 (Reuters) - Gold extended losses and dropped more than 1 percent  as investors turned to the safety of the U.S. dollar on uncertainty about a resolution of Europe's debt crisis that has stirred up fears for global growth.
"The dollar is likely to strengthen on a broad scale, at least short-term. That's definitely going to be weighing on performance. Closer to the 200-day daily moving average, we should find the bottom and I think that's still there," said Dominic Schnider, an analyst at UBS Wealth Management.

Gold falls 1 pct on rising dollar, growth fears
SINGAPORE, Sept 29 (Reuters) - Gold extended losses and dropped more than 1 percent as investors turned to the safety of the U.S. dollar on uncertainty about a resolution of Europe's debt crisis that has stirred up fears for global growth.
"The dollar is likely to strengthen on a broad scale, at least short-term. That's definitely going to be weighing on performance. Closer to the 200-day daily moving average, we should find the bottom and I think that's still there," said Dominic Schnider, an analyst at UBS Wealth Management

Vietnam to allow more gold imports this week-source
HANOI, Sept 29 (Reuters) - The State Bank of Vietnam has granted quotas for gold companies and banks to import four to five tonnes of the precious metal this week in an effort to narrow the gap between domestic and world prices, an industry source said on Thursday.  
The central bank gave importers quotas late on Tuesday and the gold would be delivered this week, said the source, who is familiar with the development.

Canada's Banro to start Congo gold mine in October
TWANGIZA, Democratic Republic of Congo, Sept 28 (Reuters)-Canadian gold mining company Banro  will start producing gold at its Democratic Republic of Congo mine on Oct. 10, ramping up output to 120,000 ounces per year by January, the company said on Wednesday.
Banro's Twangiza mine, in the eastern province of South Kivu where rebel groups operate, is the first new gold mining project in Congo for more than half a century.

20110929 1127 Global Market & Commodities Related News.

GLOBAL MARKETS-Commodities slide, stocks fall on euro crisis fears
SINGAPORE, Sept 29 (Reuters) - Asian shares and commodities fell on Thursday on growing worries that Europe's intractable debt problems will plunge the world economy into a second global financial crisis.
"Due to the high degree of uncertainty about the European situation and its effects on economic growth, there were anxious market moves in the U.S., and we will see similar moves today," said Yutaka Miura, senior technical analyst at Mizuho Securities.

Treasuries Head for Quarterly Gain Before Pending Home Sales (Bloomberg)
Treasuries headed for the biggest quarterly gain since 2008 before an industry report on U.S. home sales that economists said will be the latest evidence that America’s economy is struggling. The government is scheduled to sell $29 billion of seven- year debt today, after a five-year sale yesterday drew a record- low yield, reflecting demand for the relative safety of debt as the economy slows and Greece struggles to avoid a default. The Federal Reserve is scheduled to begin its Operation Twist next month, a $400 billion program of long-term Treasury purchases. “Operation Twist will stop yields from rising,” said Kazuaki Oh’e, a debt salesman in Tokyo at CIBC World Markets Japan Inc., a unit of Canada’s fifth-largest lender. “The economy isn’t expanding. There’s no other place to park money.”

Japanese Stocks Fall as Division Among European Leaders Saps Confidence (Bloomberg)
Japanese stocks dropped, ending a two-day rally, amid concern divisions among European policy makers will hamper efforts to resolve the region’s debt crisis, damping the earnings outlook for Asian exporters. Honda Motor Co., a carmaker that gets 83 percent of its revenue abroad, fell 2.5 percent. Mitsubishi Corp. (8058), Japan’s largest commodities trader, slid 4.5 percent after oil and metal prices dropped. Tokyo Electric Power Co., the utility at the center of the worst nuclear disaster in 25 years, tumbled 14 percent after a report it won’t seek debt relief from banks. The Nikkei 225 (NKY) Stock Average fell 1 percent to 8,531.02 at the 11 a.m. trading break in Tokyo. The gauge has dropped 4.7 percent this month and is headed for its worst quarter since the three months ended June 2010. The broader Topix index slid 0.8 percent to 748.34 today.

Brent crude sinks under Greek debt weight
NEW YORK, Sept 28 (Reuters) - Brent crude resumed its downward trend on Wednesday, falling 3 percent as Europe's debt crisis continued to worry markets, while a larger-than-expected build in weekly U.S. crude oil inventories also weighed.
"There has been widespread liquidation across the grains, metals and oil markets ahead of the German Bundestag lower house of parliament vote on Thursday on whether to back new powers for the euro zone's rescue fund," said Phillip Streible, analyst at MF Global in Chicago.

Oil supply glitches to ease, weighing on Brent
LONDON, Sept 28 (Reuters) - The restart of Libyan oil exports and the prospect of other supply disruptions being resolved soon could weaken a pillar of support that has helped hold oil prices above $100 a barrel in the face of slowing economic growth.
This year's halt of oil supplies from Libya, production problems in the North Sea, and lower shipments from central Asia, Nigeria and Angola have all cut output, especially of high-quality crude oil.

NYMEX-Oct natural gas ends down nearly 2 pct at expiration
NEW YORK, Sept 28 (Reuters) - U.S. natural gas futures ended lower on Wednesday after two days of gains, with October expiring on a weak note amid expectations for a big jump in inventories and moderating weather that should slow demand.
"The fundamentals for gas (like record production) are still negative, but some of the selling could be in sympathy with the sell-off in oil and other commodities," said Steve Platt, analyst at Archer Financial in Chicago.

Euro Coal-Prices stable, China port stocks plunge
LONDON, Sept 28 (Reuters) - Prompt physical coal prices were little changed on Wednesday, despite falls in equities, oil and copper as investors awaited news on whether Greece will be allowed another round of aid.
"Prices are down but only slightly and mostly again for the very prompt month - the move minimal," one utility source said.

COMMODITIES-Markets dive again;Greece, dollar and qtr-end blamed
NEW YORK, Sept 28 (Reuters) - The selling of commodities resumed on Wednesday, after a one-day breather, as worries over Greece and a rebounding dollar returned to haunt investors.
"I think we are seeing more risk reduction here," said Carl Larry, director of energy research at New York-based Blue Ocean Brokerage.

20110929 1055 Global Economic Related News.

Bank Negara had consulted property developers, seeking their inputs on increasing the  real property gains tax  (RPGT) to curb speculation. If announced, it will be the second  time the central bank has moved to curb excessive speculation in the property market in  the last twelve months, after capping loans for buyers of third property to 70% in Nov-10.  Developers are concerned that imposing fresh regulation will be an unwelcome gamechanger, because of concerns on the global economic situation. (BT)

The government may introduce a  new mechanism to increase the  level of selfsufficiency in rice production in the coming Budget, said Deputy Minister of Agriculture  & Agro-based Industries, Chua Tee Yong. The plan is one of the most emphasized in the  wish list of the ministry in the planning of the budget, and hopefully it would be in the  Budget plan to be unveiled by PM Datuk Seri Najib Tun Razak on 7 Oct. If the plan is  implemented, it could increase the yield of rice production by some 4% or 5% from the  current 3.7%, he noted. (Bernama)

The government hopes to announce the minimum wage for workers before the year-end,  Human Resources Minister Datuk Dr S. Subramaniam said Wednesday. The newly set-up  National Wages Consultative Council (NWCC) has been entrusted to come out with  recommendations on a minimum wage within two and a half months.  
• The NWCC Bill, which was gazetted on 15 Sep and came  into effect on 23 Sep,  empowers the council to decide on a minimum wage and also undertake studies.
• Former Chief Judge of Sabah and Sarawak Tan Sri Steve Shim Lip Kiong is the NWCC  chairman and former Human Resources Ministry secretary-general Datuk Dr Syed  Mohamad Syed Abdul Kadir is his deputy. (The Star)  

Household debt in Malaysia remains manageable for the banking system and ongoing  supervision are conducted to ensure it does not become an issue for the economy, said  Bank Negara.  
• The low unemployment rate of 3.5% for the past 3 years had allowed households to  borrow.
• Household borrowings over the past decade had jumped at an annual rate of 13.9% and  were now 77% of GDP and 55% of total loans in the banking system, mostly for homes  and cars.  
• Of the RM619.9bil in household loans, about 45% of that is to finance home purchases  and 19% is for the purchase of automobiles. Loans for consumption purchases  accounted for 20% of household debt. (The Star)  

Greece: Papandreou wins property tax vote to meet rescue aid target
Greek Prime Minister George Papandreou won parliamentary backing for a property tax to meet deficit reduction targets required to avoid default, prompting an offer of support from German Chancellor Angela Merkel. Papandreou’s Socialist Pasok party won the vote by 155 to 142 after Finance Minister Evangelos Venizelos told Greeks they face economic collapse if they don’t plug a budget gap that is exceeding the target set in a bailout, putting an EUR8bn aid payment due next month at risk. (Bloomberg)

Germany: September inflation accelerated to fastest in 3 years
Inflation in Germany accelerated more than economists forecast in September to the fastest pace in 3 years. The inflation rate increased to 2.8% from 2.5% in August, trumping economists’ prediction of 2.6%. (Bloomberg)

Germany: Merkel faces biggest test in euro vote
German Chancellor Angela Merkel faces a battle for her political survival on Thursday when some of her coalition, worried about throwing good money after bad by bailing out Greece, could humiliate her in a parliament vote on euro-zone rescue schemes. Support from the center-left opposition will ensure Germany passes the bill on new powers for the European Financial Stability Facility. But if dissent in her coalition forces Merkel to rely on opposition votes to pass the new powers for the EUR440bn rescue fund, it would be politically damaging for the conservative chancellor. (Bloomberg)

France: Sarkozy government pledges to leave 2012 spending unchanged
French President Nicolas Sarkozy’s government presented a 2012 budget that keeps spending unchanged from this year, with higher debt and pension charges continuing to weigh on its deficit. The deficit in 2012 will be EUR81.8bn, or 4.5% of economic output, down from EUR95.5bn, or 5.7%, this year. (Bloomberg)

EU: Proposes financial transactions tax to start in 2014
The European Union proposed a financial transactions tax that would take effect in 2014 and raise about EUR57bn a year. The proposal would apply a tax of 0.1% on trading of stocks and bonds, with a 0.01% rate for derivatives contracts. Those minimum rates would apply throughout the 27-nation bloc. (Bloomberg)

US: Demand for capital goods rises by most in 3 months
Orders for US capital goods climbed in August by the most in 3 months, a sign business investment continues to support the recovery. Bookings for goods like computers and communications gear, excluding military hardware and aircraft, climbed 1.1%, the most since May. (Bloomberg)

US stocks retreat as concern grows over European debt crisis
US stocks declined, halting a three-day rally for the S&P’s 500 Index, amid growing concern that European leaders are divided over how to handle Greece’s debt crisis. All 10 industry groups in the S&P 500 fell at least 0.6%, with companies most-tied to economic growth dropping the most. The S&P 500 lost 2.1% at 4pm New York time, The Dow Jones Industrial Average fell 179.79 points, or 1.6%, to 11,010.90 with all 30 stocks retreating. (Bloomberg)

US Senate plans to vote next week on legislation to crack down on  China's currency practices, despite concerns that could heighten trade tensions and further threaten global  economic growth. (Reuters)

U.S. mortgage applications increased 9.3% from one week earlier, according to data  from the Mortgage Bankers Association’s (MBA) Survey for the week ended 23 Sep. The  Refinance Index increased 11.2% from the previous week. The seasonally adjusted  Purchase Index increased 2.6% from one week earlier. (MBA)  

U.S. durable goods orders decreased 0.1% in Aug after a 4.1% gain in the previous  month, the Commerce Department reported. Economists  forecast a 0.2% decrease.  (Bloomberg)      

U.S. shipments of capital goods orders, used in calculating gross domestic product,  increased 2.8% in Aug (+0.4% in Jul), the most since Mar. (Bloomberg)  

Global regulators will stick to planned  capital surcharges of as much as 2.5% for the  world’s biggest banks while adjusting how the levies are calculated. The Basel Committee  on Banking Supervision decided against changing the surcharge levels amid criticisms from banks that the measures may stymie the financial system’s recovery. (Bloomberg)        

U.S. President Barack Obama said Europe’s debt crisis continues to be a drag on the  U.S. economy and the response of governments there hasn’t been as robust as needed.  “In Europe, we haven’t seen them deal with their banking system and their financial system  as effectively as they needed to,” Obama said. Obama didn’t specify what steps should be  taken. (Bloomberg)  

Thailand’s industrial output  rose more than  estimated in Aug as demand for autos  recovered following the March earthquake in Japan. The industrial production index rose  7% yoy (-0.7% in Jul). The median estimate was for a 4% increase. (Bloomberg)  

Thailand’s  finance ministry cut its  economic growth forecast for this year as the  faltering global recovery threatens demand for exports and floods damage agricultural  crops. The economy may grow 3.8%-4.3% in 2011, compared with a Jun forecast for a  4%-5% expansion. Gross domestic product may increase 3.5%-4.5% yoy in 3Q11.  (Bloomberg)    

Indonesia's government made a rare plea to state-owned insurance firms and banks not  to sell government bonds in the face of foreign selling over euro zone worries. Authorities  also urged large state firms to coordinate before they buy dollars to protect the  rupiah,  which has fallen 4% against the dollar this month. (Reuters)  

Vietnam's retail sales in 9M11 rose 22.8% yoy, but just 3.9% after accounting for inflation,  the General Statistics Office said. (Reuters)  

China's export growth is likely to slow down in the remaining months of 2011, but that  won't automatically translate into a weaker currency, Vice Commerce Minister Chen Jian  said. (Reuters)  

China's Ministry of Finance may allow some  local governments to issue around  Rmb30bn (US$4.7bn) of  bonds, in a moderate step toward eventually letting local  governments handle their own bond issuances, underwriting sources said. (Reuters)    

Philippine economic managers have met with government departments to implement  faster budget spending. Spending in the 8M11 fell 8.1% yoy. (Bloomberg )

20110929 1054 Malaysia Corporate Related News.

PNB makes surprise offer for SP Setia
Permodalan Nasional Bhd (PNB) launched a takeover to acquire SP Setia shares at RM3.90 per share and 91 sen per warrant in a surprise move that caught the SP Setia board unawares and spread concern through its senior management. Meantime, the SP Setia board responded in an announcement that it was seeking competitive offers because it felt that PNB’s offer undervalued the company based on external valuations of SP Setia by investment analysts published before the receipt if the offer. PNB said that its offer was conditional upon getting control of over 50% of the voting shares and that it intended to keep SP Setia’s listing status. Even if acceptances reached over 90% of the offer shares, it would not compulsorily acquire the remaining shares but would seek options to keep the company listed. (StarBiz) Please see accompanying report.

Petronas ventures into international power market
Petroliam Nasional (Petronas) made its maiden foray into the international power market with the signing of an agreement to acquire a 30% stake in GMR Energy Singapore Pte Ltd (GMRE). The national oil company said its wholly-owned subsidiary Petronas International Corp signed the deal for the proposed acquisition with GMR Infrastructure (S) Pte Ltd and GMR Infrastructure Ltd, both are units of India’s GMR group. GMRE is developing a 800MW combined-cycle gas turbine power plant in Jurong Island, Singapore. To be fuelled by re-gasified liquefied natural gas, the power plant will be designed and constructed by a consortium consisting of Siemens and Samsung. (StarBiz)

Digistar subsidiary lands 2 IPTV projects
Digistar Corporation’s subsidiary Digistar Rauland MSC SB has secured two separate contracts to implement IPTV services at two hospitals in the Klang Valley. Digistar said on Wednesday, 28 Sept that the two projects were to build and maintain the IPTV system for a period of ten years from date of completion. The company said the projects were expected to be completed within three months, and would be financed via internally generated funds. However, Digistar did not disclose the value of the respective projects. (Financial Daily)

Puncak acquires remaining 60% interest in Global Offshore, KGL
Puncak Niaga has acquired the remaining 60% equity interest in Global Offshore Malaysia SB and KGL Ltd respectively for RM110.68m. In an announcement to Bursa, Puncak Niaga said it made the acquisition via its wholly owned subsidiary Puncak Oil and Gas SB (POG) which had in May acquired 40% interest in Global Offshore and KGL respectively for RM72.2m. According to Puncak, the acquisition in May included the call option agreement between Global Asia Pacific Industries SB (GAPI) and POG to allow POG to acquire 49% equity interest in Global Offshore from GAPI. (Financial Daily)

Parkson gets greenlight for SGX
Parkson Retail Asia Pte has received a conditional approval from the Singapore Exchange Securities Trading Ltd to list on the Singapore bourse. Parkson Holdings said on Wednesday, 28 Sept that Parkson Retail had received the conditional eligibility-to-list (ETL) letter from the SGX-ST in relation to the proposed listing. “The ETL is subject to amongst others, compliance with the SGX-ST’s listing requirements. The ETL granted by the SGX-ST is not an indication of the merits of the proposed listing, the Parkson Asia group, or the shares in Parkson Asia,” it said. (Financial Daily)

Axis REIT buys Penang industrial land for RM59m
Axis REIT Managers is acquiring two pieces of industrial land near Bukit Mertajam, Penang for RM59m from Apex Properties SB. It said on 28 Sept, the first plot of land was 54,775 sq. m with land tenure of 60 years leasehold expiring on 22 Oct 2052. The second piece of land was about 0.0823 ha with land tenure of 60 years leasehold expiring on 19 May 2068. Axis REIT said the property was within the Bukit Tengah Industrial Park. It added that it intended to use a debt facility of about RM59m from Axis-REIT’s existing credit lines. The proposed debt financing will increase Axis-REIT’s gearing ratio to 39% of audited total assets as at 31 Dec 2010, which is below the gearing limit of 50% prescribed by the REIT Guidelines. (Financial Daily)

BCorp auto arm listing plan rejected
The Securities Commission has rejected the proposed listing of Berjaya Corp (BCorp)’s 80%-owned subsidiary Bermaz Motor SB (via Berjaya Auto Bhd) on the Main Market of Bursa Malaysia. BCorp told Bursa Malaysia in a statement that the rejection was due to a deficit in net operating cashflows of Bermaz Motor. “BCorp’s board of directors will deliberate on the next course of action, including but not limited to the restructuring of the proposed Berjaya Auto Group.” Bermaz Motor has been the official distributor of Mazda vehicles in Malaysia since early 2008.
On another note, BCorp has completed its acquisition China-based potable water producer and supplier DSG Holdings Ltd (DSGHL) for a consideration of USD25.97m (RM77.91m). BCorp told Bursa Malaysia that DSGHL would effectively become its 85%-owned subsidiary. (StarBiz)

DiGi  has teamed up with MY Evolution to launch Malaysia's first machine-to-machine  (M2M) mobile virtual network operator (MVNO) service. "The M2M business is marketdriven where MY Evolution as an MVNO can complement DiGi's strategy by offering  industry solutions," said DiGi's head of strategy and business transformation, Christian  Thrane. MY Evolution will ride on DiGi's infrastructure to provide end-to-end M2M  communications services. (Bernama)

The Government is considering unbundling Tenaga National (TNB)'s bills to consumers to  reflect charges related to generation, distribution and transmission. Energy, Green  Technology and Water Ministry (KeTTHA) deputy secretary-general Badaruddin  Mahyuddin said MyPower Corp had been assigned to study the unbundling of consumer  bills. Asked if the unbundling of TNB's accounts was the first step to break TNB up,  Badaruddin said,  
• "Not breaking up TNB but to show the public the effective cost from the three divisions - generation, distribution and transmission - (and) to help them to understand the cost.  Ultimately, maybe, but we are not sure. We will wait for the study from MyPower" he  said. (Starbiz)    

Three ex-Miami mayors have raised concerns that  Genting's proposed Miami supercasino plan will "gobble up public lands",  according to the Miami News. Opposition is  slowly growing in some quarters to the plan, including concerns cited over Genting's  alleged ties to an alleged organized crime individual. (Casino City Times)  

Kuala Lumpur Kepong  sold RM300m (US$95m) of Islamic debt yesterday, a person  familiar with the matter said. The sukuk, that pay returns from assets that comply with the  religion’s ban on interest, were priced to yield 3.88%, said the person, who asked not to be  named because the details are private. The price was within its revised yield guidance of  3.85 - 3.90% and attracted demand that exceed supply by about three times, the person  said. (Bloomberg)  

A home-grown technology using radio frequency identification (RFID), which will be  deployed in Royal Malaysian Customs' checkpoints nationwide, is likely to be adopted by  neighbouring countries soon. Smartag Solutions, the provider of the RFID, has received  the thumbs-up from several international and local logistics players who had participated in  its trial run, where participants were able to achieve a 50% reduction on time taken for  customs, contributing to cost savings. (BT)    

RHB Capital has asked for another six months (until April 19 2012) for the implementation  of a renounceable rights issue to raise RM1.3bn for the bank. (BT)

Malaysia Airlines (MAS) has won the “Asia’s Leading Airline” and “Asia’s Leading Airline  Lounge” awards at the World Travel Awards (Asia & Australasia) Ceremony. (Star Biz)  

AirAsia has invested over US$1m (RM3.16m) in cutting-edge airline management system,, to improve its operational efficiency. The system would optimize AirAsia’s  aircraft and crew utilization, making it possible for the airline to further improve its on-time  performance and minimize costs. (Bernama)

Berjaya Corp  has completed its acquisition of China-based potable water producer and  supplier DSG Holdings (DSGHL) for a consideration of US$25.9m (RM77.9m). DSGHL  would effectively become its 85%-owned subsidiary. (Starbiz)  

SEG International (SEGi) has taken a 9.08% equity stake in ACE Market-listed Eduspec  Holdings, which is involved in the development and provision of e-learning products and  educational services. (Financial Daily)  

BMW Group Malaysia expects to post its  ninth straight year of record sales in 2012.  Managing director Geoffrey Briscoe has projected a conservative growth of 10% for 2012,  but nevertheless hopes to be able to repeat its record performance of some 25% in the  premium car market. "We expect production to go up next year.  
• From 2,900 units, we increased to 5,000 units. The expectation of a double-digit growth  in sales efforts will also see a double-digit increase in production," Briscoe said. Given  the robust performance in Malaysia, BMW has earmarked Malaysia as the one of the  key growth markets of the future. (BT)    

Kulim Malaysia has raised its takeover offer for shares it does not own in Sindora Bhd to  RM3.10 a share. Kulim had initially offered RM3 a share for almost 10.9m shares in  Sindora. The closing date for the offer is October 18 2011. (BT)

20110929 1012 Renewable Energy Related News.

AMSTERDAM, Sept 27 (Reuters) - A large sunflower seed crop this year has pushed prices lower and made it an attractive substitute for rape seed, which is largely used to produce biodiesel in the European Union and has seen a drop in production, analysts said.
German-based analyst Oil World has said it sees global 2011/12 sunflower seed output at a record 37.1 million tonnes, 11 percent up from the 33.3 million tonnes in 2010/11.  

EDINBURGH, Sept 27 (Reuters) - Scotland's First Minister Alex Salmond on Tuesday announced a new 35-million-pound offshore wind technology fund at the start of a two-day Scottish low carbon investment conference.
Salmond also said Edinburgh-based Oyster wave energy developer Aquamarine Power had secured seven million pounds in new funding and a commitment of further investment from existing shareholders over the next two years to help the company into commercial production in 2014.  

Sept 26 (Reuters) - Chinese solar company Suntech Power Holdings Co Ltd  on Monday named John Lefebvre as president of its U.S. and Canada business. Lefebvre had been vice president of sales and business development at solar installer SolarCity for the last four years.

TORONTO, Sept 26 (Reuters) - Even though Canada will likely set a record for new wind energy capacity this year, the rapid growth could dry up without stable policies to encourage its expansion, an industry association said Monday.
About 1,338 MW of new installed wind energy capacity is projected to come online this year, up from 690 MW in 2010, according to the Canadian Wind Energy Association.

MILAN, Sept 26 (Reuters) - Italy's total installed photovoltaic (PV) capacity is expected to rise to at least 15 gigawatts by the end of 2012, with growth slowing down under its new incentive plan, senior industry officials said on Monday.
Italy's solar market, the world's second-biggest after Germany's, has boomed since 2007 when the government boosted production subsidies. In May, Rome cut incentives to help consumers, who support the scheme through power bills.

JOHANNESBURG, Sept 26 (Reuters) - South African power utility Eskom [ESCJ.UL] signed two loan agreements worth a total of $365 million with the African Development Bank (AfDB) for clean-energy projects.
Eskom said in a statement late on Sunday that the loans would "enable the first large-scale implementation of renewable wind and solar generation in Eskom's history."

LOS ANGELES/WASHINGTON, Sept 23 (Reuters) - Solar panel installer SolarCity said on Friday it was the second company in as many days that will not get finalization of U.S. government loan aid by a Sept. 30 deadline.
The Department of Energy informed SolarCity of its inability to close the loan 48 hours ago, blaming increased paperwork resulting from a Congressional investigation into the DOE's $535 million loan guarantee awarded to bankrupt solar company Solyndra, SolarCity said in a letter to the Republican lawmakers heading the probe.

PRAGUE, Sept 23 (Reuters) - Czech utility CEZ  plans to raise 200 billion Czech crowns ($10. billion), via building wind and hydro power stations abroad, to invest in building new units at the Temelin nuclear power plant, daily Lidove Noviny reported on Friday.
The newspaper reported that newly elected Chief Executive Daniel Benes introduced the plan at a meeting of the power group's top management on Thursday.

Sept 22 (Reuters) - First Solar Inc  said it would not meet a deadline to receive a federal loan guarantee for a huge solar power plant it is building in California, sending its shares to their lowest level in more than four years.
The announcement cast a spotlight again on the Obama administration's support of renewable energy, which have come under fire by Republicans since the collapse of solar company Solyndra after it won more than $500 million in backing from the Department of Energy.

LONDON, Sept 21 (Reuters) - The UK's National Grid warned on Wednesday it expects to curtail 250 megawatts of wind generation in Scotland until 0600 GMT on Thursday, revising earlier forecasts, as transmission bottlenecks are preventing surplus power generated by high wind speeds being diverted elsewhere.
National Grid earlier in the day had forecast a cut of 500-MW lasting until 0400 GMT.

FRANKFURT, Sept 21 (Reuters) - Frank Asbeck, chief executive of Germany's No.2 solar company SolarWorld , has criticised Chinese rivals for eating into the market share of European peers, potentially driving them out of business.
"There is no fair competition in our industry. The Chinese have started an industry war," he told German magazine Capital, according to an excerpt of an interview made available ahead of its publication on Thursday.

20110929 1011 Biofuels Related News.

WASHINGTON, Sept 23 (Reuters) - Private U.S. ethanol maker POET said on Friday the Department of Energy has finalized approval for $105 million in loan aid for building a cellulosic ethanol plant to make fuel from corn waste.
The Obama administration has been under fire from Republicans who say it missed key warning signs before the DOE issued loan aid for the start-up solar company Solyndra, which went bankrupt.

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.

WASHINGTON, Sept 22 (Reuters) - Legislation was being drafted in the U.S. House of Representatives that would reduce the federal mandate to use fuel ethanol when corn supplies are tight, a congressional staff worker confirmed on Thursday.
The staffer said a bill was under consideration but declined to discuss details.

Sept 22 (Reuters) - Biofuel producer Fulcrum BioEnergy Inc filed with U.S. regulators on Thursday to raise up to $115 million in an initial public offering of common stock.
In a filing with the U.S. Securities and Exchange Commission, the company said UBS Investment Bank will underwrite the offering.

Sept 21 (Reuters) - U.S. ethanol production fell nearly 1 percent last week as gasoline demand dipped, limiting blender consumption.
The Energy Information Administration said on Wednesday that U.S. ethanol production totaled 871,000 barrels per day in the seven days to Sept. 16, down 8,000 barrels per day, or 0.9 percent, from the previous week.

20110929 1010 Global Market Related News.

Asian Stocks Drop as Concern Grows Over European Division on Debt Crisis (Source: Bloomberg)
Asian stocks dropped for the first time in three days amid growing concern that divisions among European leaders will hamper efforts to solve the region’s debt crisis, damping the earnings outlook for exporters. Sony Corp. (6758), Japan’s No. 1 exporter of consumer electronics that gets 21 percent of its sales in Europe, slid 1.3 percent in Tokyo. Mazda Motor Corp., the Japanese car maker that’s most dependent on Europe, dropped 1.3 percent. BHP Billiton Ltd., the world’s largest mining company and Australia’s biggest oil and gas producer, declined 2.5 percent after crude and metals prices fell. “The European situation continues to drag on markets around the world,” said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion. “It’s going to stay with us for a quite number of months to come, well into 2012.”

U.S. Stocks Retreat as Concern Grows Over Europe’s Handling of Debt Crisis (Source: Bloomberg)
U.S. stocks declined, halting a three-day rally for the Standard & Poor’s 500 Index, amid growing concern that European leaders are divided over how to handle Greece’s debt crisis. All 10 industry groups in the S&P 500 fell at least 0.6 percent, with companies most-tied to economic growth dropping the most. Dow Chemical Co. (DOW) and Alcoa Inc. (AA) slid at least 4.9 percent as commodities tumbled. Morgan Stanley and Bank of America Corp. (BAC) lost more than 4.9 percent, pacing declines among financial shares. Inc. (AMZN) rose 2.5 percent after the company launched its Kindle Fire tablet computer, taking aim at Apple Inc.’s bestselling iPad. The S&P 500 lost 2.1 percent to 1,151.06 at 4 p.m. New York time, after rising as much as 0.8 percent earlier and rallying 4.1 over the previous three days. The Dow Jones Industrial Average fell 179.79 points, or 1.6 percent, to 11,010.90 today, with all 30 stocks retreating.

Demand for U.S. Capital Goods Climbs Most in Three Months in Recovery Sign (Source: Bloomberg)
Orders for U.S. capital goods climbed in August by the most in three months, a sign business investment continues to support the recovery. Bookings for goods like computers and communications gear, excluding military hardware and aircraft, climbed 1.1 percent, the most since May, a Commerce Department report showed today in Washington. Demand for all durable goods dropped 0.1 percent, less than forecast. Manufacturers like General Electric Co. (GE) continue to benefit from sales to China, India and other emerging markets even as they face a slowdown in domestic spending. Gains in business investment in the U.S. indicate companies are looking beyond the plunge in stocks and concern over the European debt crisis and are seeking to expand.

Fed’s Hoenig Says Operation Twist Adding to Risk of Economic ‘Imbalances’ (Source: Bloomberg)
Federal Reserve Bank of Kansas City President Thomas Hoenig said the Fed’s plan to push down long- term interest rates may produce accidental outcomes and policy makers risk creating “imbalances” in the economy. “I have real concerns about trying to fine-tune and micro- manage the economy when monetary policy is a blunt tool,” he said today in an interview with Bloomberg Radio’s “The Hays Advantage” with Kathleen Hays. Efforts to “redefine yield curves” may “introduce new complexities and risk new unintended consequences,” he said. Hoenig steps down as the central bank’s longest-serving policy maker this week, after serving as a regional chief since 1991. The Federal Open Market Committee is debating how to jump- start the U.S. economic recovery, with three members casting dissents at each of the past two meetings and posing the most opposition in almost 19 years.

Fed’s Mortgage Buying May Push Banks Into Riskier Debt, Deutsche Bank Says (Source: Bloomberg)
The Federal Reserve’s decision to resume purchases of government-backed mortgage securities may help push banks to expand the types of bonds they buy, according to Deutsche Bank AG. (DBK). U.S. commercial banks’ holdings of home-loan bonds guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae have swelled $104 billion this year to a record $1.21 trillion, according to Fed data. Their total amount of securities climbed $58 billion to $2.48 trillion amid sluggish bank lending. Banks are considering investments outside their traditional “wheelhouse” of agency mortgage bonds, including securities backed by commercial mortgages, subprime auto debt and company loans, Deutsche Bank analyst Steven Abrahams wrote today in a report, citing meetings he’s had with lenders in the past week. By lowering mortgage-bond yields, the Fed’s plan to reinvest proceeds from the $1 trillion of housing debt it holds into new home-loan securities may fuel buying of riskier debt with higher yields, he wrote.

China Growth Seen Less Than 5% by 2016: Poll (Source: Bloomberg)
Most global investors predict Chinese growth will slow to less than half the pace sustained since the government began dismantling Mao Zedong’s communist economy three decades ago, a Bloomberg poll indicated. Fifty-nine percent of respondents said China’s gross domestic product, which rose 9.5 percent last quarter, will gain less than 5 percent annually by 2016. Twelve percent see such a slowdown within a year, and 47 percent said it will occur in two to five years, the quarterly Bloomberg Global Poll of investors, analysts and traders who are Bloomberg subscribers showed. China, which saw its exports tumble the most since at least 1979 amid the 2008-09 global crisis, may not be able to rely on trade in any prolonged demand slump in Europe and the U.S., now battling to avoid returning to a recession. Managing the economic downshift would fall to the Communist Party’s next leaders, as President Hu Jintao and Premier Wen Jiabao begin their transition from power late next year.

Japan Stocks Fall as European Divisions Dims Earnings Outlook (Source: Bloomberg)
Japanese stocks fell, snapping a two-day rally, amid concern that divisions among European leaders will hamper efforts to solve the region’s debt crisis, damping the earnings outlook for Asian exporters. Sony Corp. (6758), a consumer electronics exporter that gets 21 percent of its sales in Europe, slid 0.9 percent. Inpex Corp. (1605), Japan’s largest energy explorer, fell 1.6 percent after the price of crude oil declined. The Nikkei 225 (NKY) Stock Average fell 0.9 percent to 8,542.54 as of 9:07 a.m. in Tokyo. The broader Topix index slid 0.5 percent to 750.34. The Nikkei is down 13 percent this quarter, heading for the biggest loss since the second quarter of 2010. It has fallen 4.6 percent this month.

Japan Stocks Fall as European Divisions Dims Earnings Outlook (Source: Bloomberg)
Japanese stocks fell, snapping a two-day rally, amid concern that divisions among European leaders will hamper efforts to solve the region’s debt crisis, damping the earnings outlook for Asian exporters. Sony Corp. (6758), a consumer electronics exporter that gets 21 percent of its sales in Europe, slid 0.9 percent. Inpex Corp. (1605), Japan’s largest energy explorer, fell 1.6 percent after the price of crude oil declined. The Nikkei 225 (NKY) Stock Average fell 0.9 percent to 8,542.54 as of 9:07 a.m. in Tokyo. The broader Topix index slid 0.5 percent to 750.34. The Nikkei is down 13 percent this quarter, heading for the biggest loss since the second quarter of 2010. It has fallen 4.6 percent this month. “It’s all about Europe,” saidKenichi Hirano, general manager and strategist at Tachibana Securities Co. in Tokyo. “The focus is whether they can establish unity, and the market’s going through ups and downs according to developments.”

Hong Kong Markets Closed as Typhoon Nesat Nears (Source: Bloomberg)
Hong Kong shut financial markets, schools and government offices, raising its highest storm signal for the year as Typhoon Nesat brought gale-force winds and rain into the city. The typhoon, which killed at least 20 people in the Philippines, was centered about 350 kilometers south-southwest of Hong Kong, and is heading toward China’s Hainan Island, the city’s observatory said. The morning trading session has been canceled, said Hong Kong Exchanges & Clearing Ltd. “It’s deadly quiet outside, like a dark wet ghost town,” said Gavin Parry, managing director of Parry International Trading Ltd. in Hong Kong, who usually walks to work. “There are few mini buses, no public buses and taxis are trolling for passengers to pay an extra HK$100 fare given the typhoon. It impacts trading operations as staffs are allowed to remain home, but we have home terminals as a back-up.”

South Korea Current-Account Surplus at Seven-Month Low on Seasonal Factor (Source: Bloomberg)
South Korea’s current-account surplus narrowed to its lowest level in seven months in August as the total amount of exports fell from previous months due to fewer working days during the summer holiday season. The surplus was $401.3 million, compared with a revised $3.77 billion in July, the Bank of Korea said in a statement in Seoul today. The current account is the broadest measure of trade, tracking goods, services and investment income. The Bank of Korea expects demand from emerging economies to help the nation maintain a current-account surplus this year even as Europe’s debt woes and a faltering U.S. recovery dim the outlook for Asian exports. The surplus may help the won recover after weakening, according to economist Lee Sung Kwon.

Euro Crisis Makes Fed Lender of Only Resort as Banks Chase Dollar Funding (Source: Bloomberg)
The Federal Reserve, chastised by Congress for lending money to foreign institutions including a Libyan-owned bank, is once again the lender of last resort for banks around the world it knows little about. Three years after the collapse of Lehman Brothers Holdings Inc., money-market borrowing rates for dollars are rising, leading the Fed and European Central Bank to make the currency available to Europe’s institutions for as many as three months. U.S. prime money-market funds cut their exposure to euro-zone bank deposits and commercial paper, or short-term IOUs, to $214 billion in August from $391 billion at the end of last year, according to JPMorgan Chase & Co. data.
The failure of regulators worldwide to address European banks’ fragile dependence on short-term funding is “putting the Fed in a really awkward position,” said Karen Shaw Petrou, managing partner at Federal Financial Analytics, a Washington regulatory research firm whose clients include the biggest U.S. banks. The swaps with Europe “are an extremely advantageous political football” for critics of the Fed, she said.

European Stocks Slide, Snapping Three-Day Rally; Man Group Sinks (Source: Bloomberg)
European stocks declined, snapping the biggest three-day rally in 16 months, amid concern that holders of Greek bonds will suffer larger losses than previously agreed upon. Man Group Plc (EMG) sank the most in almost three years as the world’s biggest hedge fund said assets under management will decrease. Cairn Energy Plc (CNE) slid 6.5 percent after abandoning an exploration well. Deutsche Boerse AG (DB1), the operator of the Frankfurt stock exchange, lost 4 percent as the European Union proposed a financial-transactions tax. The Stoxx Europe 600 Index slipped 1.1 percent to 227.39 at the 4:30 p.m. close in London after earlier rising as much as 0.5 percent. The gauge had surged 7 percent over the previous three days, the biggest rally since May 2010, amid speculation policy makers will increase efforts to contain the region’s sovereign-debt crisis.

U.K. Stocks Decline as Man Group, Banks Drop; BG Group Rallies in London (Source: Bloomberg)
U.K. stocks retreated for the first time in four days, paring yesterday’s biggest rally for the FTSE 100 Index (UKX) in 16 months, as investors sought further signs that policy makers are addressing Europe’s debt crisis. Man Group Plc (EMG) plunged 25 percent, the most in almost three years, after the world’s largest hedge fund said assets under management will drop by 8.5 percent. Banks also retreated, snapping a three-day rally. BG Group Plc (BG/) paced advancing shares after Goldman Sachs Group Inc. recommended the oil producer. The benchmark FTSE 100 slid 76.42, or 1.4 percent, to 5,217.63 at the 4:30 p.m. close in London, after swinging between gains and losses at least 10 times today. The gauge yesterday jumped 4 percent. The broader FTSE All-Share Index slid 1.4 percent while Ireland’s ISEQ Index fell 1 percent.

Swiss Franc’s Ceiling Is ‘Very Credible’ as Market Heeds SNB, Jordan Says (Source: Bloomberg)
The Swiss central bank’s franc ceiling of 1.20 versus the euro is “very, very credible,” Vice President Thomas Jordan said. The Swiss National Bank will use “all measures” to defend it, Jordan said at an event in Basel, Switzerland, late yesterday. He declined to comment on whether policy makers will raise the cap, saying the Zurich-based central bank is taken “seriously in the market.” The SNB on Sept. 6 imposed a franc ceiling for the first time since the 1970s and resumed purchases of foreign currencies to protect the economy. Efforts to stem franc gains in the 15 months through mid-June 2010 more than quadrupled the bank’s balance sheet and contributed to an annual loss of $21 billion as the single currency’s value plummeted.

Germany to Vote on Euro Rescue Fund, Set Stage for Next Steps (Source: Bloomberg)
German lawmakers are set to back an expansion of the euro-area rescue fund’s firepower as European officials turn to look at what next steps may be needed to stem the debt crisis. The plan before the lower house in Berlin today would allow the fund to buy bonds of distressed states and offer emergency loans to governments, raising Germany’s guarantees to 211 billion euros ($287 billion) from 123 billion euros. The main opposition Social Democrats and Greens have said they will vote with Chancellor Angela Merkel’s government, assuring passage. Lawmakers vote from about 11 a.m. Berlin time as government officials weigh further measures to bolster Greece and stem investor concern that helped end the biggest three-day rally in 16 months for European stocks yesterday. Options include seeking further writedowns on Greek sovereign bonds, adding yet more firepower to the rescue fund and a “plan B” for banks.

German Industry Chiefs Unite to Save Euro as Lawmakers Bicker Over EFSF (Source: Bloomberg)
German executives and industry leaders joined forces in the fight to save the euro as lawmakers quarreled over the stakes, drawing the battle lines for a parliamentary vote on a second Greek bailout. Germany’s lower house, the Bundestag, will give its decision today on strengthening Europe’s temporary rescue fund, the European Financial Stability Facility, in a ballot that has split Chancellor Angela Merkel’s government. Germany, Europe’s largest economy and the single biggest contributor to the aid, sends more than 40 percent of its exports to euro-region countries and has the most to gain from an intact monetary union. Lobby groups, led by the BDI Federation of German Industries and labor unions under the umbrella of the Confederation of German Trade Unions, or DGB, made a last-ditch appeal to lawmakers this week to back the changes.

Australia, New Zealand Dollars Slide Amid Debt Crisis Containment Concerns (Source: Bloomberg)
The Australian and New Zealand dollars weakened against their U.S. and Japanese counterparts as Europe’s debt crisis concerns spurred a drop in shares across the world, curbing demand for higher-yielding assets. The so-called Aussie declined against 15 of its 16 major peers ahead of a vote on a European rescue fund in the Germany’s lower house today. New Zealand’s currency slid versus the dollar and the yen for a second day after U.S. and European stocks dropped and commodity prices fell. “Developments regarding the euro-zone sovereign debt is really the major factor driving down the Aussie,” said Janu Chan, an economist at St. George Bank Ltd. in Sydney. “Negative sentiments would really follow through today.”

Yen, Dollar Rise as Europe Debt Concern Boosts Safety Demand; Aussie Falls (Source: Bloomberg)
The yen and dollar climbed against most of their major peers as concern that Europe’s debt crisis will hurt global growth bolstered demand for haven currencies. The euro was poised for a third monthly decline against the dollar before Italy sells bonds and German lawmakers vote on changes to a European bailout fund. The Australian dollar slid for a second day versus the greenback as Asian stocks extended a drop in equities globally, reducing demand for higher-yielding currencies. “When things are very uncertain, at the end of the day people will still always run back to the greenback and yen,” said Khoon Goh, head of market economics and strategy at ANZ National Bank Ltd. in Wellington. “The global economy is slowing, and we know that risks are to the downside.”

20110929 1009 Global Commodities Related News.

Commodities Head for Biggest Quarterly Drop Since 2008 on Economy’s Woes (Source: Bloomberg)
Commodities fell, heading for the biggest quarterly slump since 2008, as Europe’s sovereign-debt crisis threatened to derail the global economy, slashing raw- material demand. The Standard & Poor’s GSCI index of 24 raw materials slid 2.7 percent to settle at 603.55 at 3:46 p.m. New York time. Since June 30, the gauge has slumped 9.8 percent, the most since the last quarter of 2008 during the most-severe recession since the 1930s. Copper closed at the lowest price in 13 months, and crude oil fell almost 4 percent. The MSCI World (MXWO) Index of equities fell for the first time in four sessions amid increasing concern that European leaders are divided on handling the region’s debt woes. A report tomorrow may confirm European consumer confidence dropped to a two-year low in September. Last week, an index of purchasing managers in China indicated that manufacturing contracted.

Corn (Source: CME)
US corn futures finish sharply lower as renewed economic concerns fuel fresh liquidation by commodity funds. Traders estimate funds sold an estimated 17,000 contracts, a hefty amount. Prices have pulled back almost 18% since late August, with the slide expected to attract grain users to the market. They see the decline as a buying opportunity amid lingering concerns about low corn inventories. "We've certainly got commodity values down to where I think they're undervalued," says Mike Krueger of The Money Farm. CBOT December corn loses 21 1/2c to $6.30 3/4 a bushel.

Wheat (Source: CME)
US wheat futures close lower as fund selling and weakness in external markets pressure prices. The selloff "had to be more fund liquidation" because supply-and-demand factors didn't shift dramatically today, says Mike Krueger of The Money Farm. Funds sold an estimated 4,000 contracts at the CBOT, a moderate amount. Traders will see Thursday whether the decline was enough to win business from Egypt, the world's top wheat importer. It has been buying low-cost Russian wheat recently. CBOT December wheat sinks 19 1/2c to $6.38 3/4 a bushel, KCBT December loses 26 1/4c to $7.26 3/4 and MGEX December drops 8c to $8.61 1/4.

Rice (Source: CME)
US rice futures slump as renewed concerns about the global economy sink a range of commodities. Rice prices tumble with metals and other grains, including wheat, corn and soybeans. Yet, rice still trades within Tuesday's range, avoiding a steep fall after approaching a two-month low Monday. CBOT November rice ends down 7c at $16.28/hundredweight.

U.S. grains decline on slow growth, dollar's gain
SINGAPORE, Sept 28 (Reuters) - U.S. grain futures fell, giving back gains from the previous day, as concern that global economic growth will slow and doubts over Europe's commitment to its debt plan prompted investors to shift to the U.S. dollar.
"There are expectations that the USDA may report a larger-than-expected supply on corn," said Lynette Tan, a grains analyst at Phillip Futures in Singapore.

Philippines puts typhoon crop damage at $13 mln
MANILA, Sept 28 (Reuters) - The Philippine Agriculture Department said on Wednesday its initial estimate was that rice and corn crops valued at 569.4 million pesos ($13 million) were lost due to damage from Typhoon Nesat.
Estimated crop damage included 33,890 tonnes of rice from 56,421 hectares affected in five regions, including the key rice growing regions of Cagayan Valley and Central Luzon, the department said.

Punjab, Haryana's 2011 paddy procurement seen up 7.7 pct
CHANDIGARH, India, Sept 28 (Reuters) - Paddy procurement by Punjab and Haryana in 2011 is likely to rise 7.7 percent over last year, government officials said, as the country is expected to harvest a record crop.
The two northern states, which are India's major paddy producers, are expected to buy 16.8 million tonnes from domestic farmers, against 15.6 million tonnes a year ago, officials said.

Philippines counts cost as Typhoon Nesat departs
MANILA, Sept 28 (Reuters) - The Philippines began on Wednesday the clean-up of flooded areas and assessments of damage, including to the key rice crop, a day after Typhoon Nesat left behind at least 18 dead.
Financial markets, government offices and some schools reopened after being closed by the typhoon, and train services resumed after power supplies were restored in the capital.

USDA seen lowering US spring, all-wheat production
CHICAGO, Sept. 27 (Reuters) - Poor yields in the northern U.S. spring wheat belt should prompt the U.S. Department of Agriculture to cut its estimate of overall 2011 U.S. wheat production to the lowest level since 2006, analysts said.
Spring wheat production could drop to its lowest level since 2007, and if it does, ending stocks of the high quality wheat could tumble to the second-lowest on record.

Corn supply at 8-year low, down less than expected
CHICAGO, Sept 27 (Reuters) - U.S. corn stockpiles likely declined over the summer but by slightly less than the government has estimated, giving the tight market marginally more breathing room before consumers enter an even leaner year.
Inventories at the end of the 2010/11 marketing year are expected to fall to 964 million bushels, down 44 percent from 1.708 billion a year ago and the smallest supply in eight years, according to analysts polled by Reuters ahead of the U.S. Agriculture Department's quarterly stock report on Friday.

S.Africa cuts maize output forecast, wheat seen up
JOHANNESBURG, Sept 27 (Reuters) - South Africa slightly cut its May 2010-April 2011 season maize output forecast on Tuesday, citing a lower pace of deliveries to silos, while the 2011 wheat output is seen up on the back of better yields.
In its final forecast, the government's Crop Estimates Committee (CEC) said Africa's largest maize producer is expected to harvest 10.608 million tonnes of the crop, compared with 10.679 million tonnes in the previous forecast.

ICE sugar extends rebound, cocoa slips
LONDON, Sept 28 (Reuters) - ICE sugar futures extended their correction higher in early trade, bouncing after the commodity sell-off, while cocoa eased, under pressure from ample supplies.
Raw sugar futures on ICE climbed, supported by bullish market technicals based on historical price charts, after dealers said the market had become oversold.

India sugar producers' body foresees surplus
NEW DELHI, Sept 27 (Reuters) - India is heading for a sugar surplus in 2011/12, and the government should help producers by allowing 4 million tonnes of exports -- more than double this year's overseas sales, the head of a producers' body said on Tuesday.
Output for the world's second-biggest producer after Brazil could rise to 26.5 million tonnes in 2011/12, Jayantilal B. Patel, president of the National Federation of Cooperative Sugar Factories Ltd (NFCSF), told an industry meeting.

Colombia's top coffee region output lags -farmers
BOGOTA, Sept 27 (Reuters) - Leading Colombian coffee-growing province Antioquia is seen producing fewer beans during its main harvest than in the same period a year ago after torrential rains hit plantations, growers said.
Coffee growers in the northwestern province that accounts for 16 percent of Colombia's total output said progress was slower than normal.

Brazil coffee area seen dry until mid-Ocober
BRASILIA, Sept 27 (Reuters) - Brazil's key coffee zones could stay dry until mid October, delaying the start of crop-fixing flowering, but the long dry spell does not yet spell disaster for the next crop, agronomists said on Tuesday.
The coffee market is relying on a good on-year harvest next year from the world's top grower to pump supplies into a market facing chronic shortages of some bean types. The shortages have sustained high prices since mid 2010.

Brazil CS sugar output down 8 pct - Unica
SAO PAULO, Sept 27 (Reuters) - Sugar production from Brazil's center-south cane crop this season is lagging last year by 8 percent, but output was up in recent weeks, the cane industry association Unica said on Tuesday.
From the beginning of the season in April through Sept. 16, sugar output totaled 23.1 million tonnes, 2 million tonnes less than the same period in 2010.

ICoast 2011/12 cocoa output seen 1.4 mln T -finmin source
ABIDJAN, Sept 27 (Reuters) - Ivory Coast's finance ministry expects the world's top grower to produce 1.4 million tonnes of cocoa next season, slightly down on this year's record of around 1.5 million tonnes, a ministry source told Reuters on Tuesday.
"The weather is still favourable and the plantations have been treated much more than in past years. All of that will maintain production at 1.4 million tonnes for 2012," the source said, citing an internal ministry forecast.

India trying for consensus on 2011/12 sugar output forecast
NEW DELHI, Sept 27 (Reuters) - India's government is trying to reach a consensus over how much sugar the country is likely to produce in 2011/12, Food Minister K.V. Thomas said on Tuesday after his forecast varied from that of the farm minister.
"I am aware there is some difference on preliminary estimates of sugar production, and efforts are on to reconcile the figures," Thomas told a conference.

India should allow 4 mln T sugar exports in 2011/12-industry body
NEW DELHI, Sept 27 (Reuters) - India should allow 4 million tonnes of unrestricted sugar exports in the new season from October to help trim bulging stocks and arrest slipping local prices, the chief of a producers' body said on Tuesday.
The federal government should also buy 2 million tonnes of sugar from the local market to help cut stocks with mills as 2011/12 output is expected to be 26.5 million tonnes, Jayantilal B. Patel, president of the National Federation of Cooperative Sugar Factories Ltd (NFCSF), told an industry meeting.

Ivorian cocoa arrivals up 22 pct yr/yr
ABIDJAN, Sept 27 (Reuters) - Cocoa arrivals at ports in top grower Ivory Coast reached a fresh record 1,449,320 tonnes by Sept. 18 since the start of the season in October, up from 1,184,195 tonnes in the same period a year ago, according to data from the Bourse du Cafe et Cacao (BCC) obtained by Reuters on Tuesday.
The West African state is on track to register nearly 1.5 million tonnes of cocoa, a record tally driven by ideal weather conditions and achieved despite a brief civil war earlier in the year that forced many planters into hiding.

Russia Starts Sugar Exports For First Time In 12 Years-Industry (Source: CME)
Russia is exporting sugar to the world market for the first time in more than a decade, industry sources said, marking a sea change for one of the world's largest sugar importers of recent decades. An official at the sugar producers' association Soyuzrossakhar said the first contracts to export to Tajikistan and Kyrgyzstan were signed at the end of August, and with prices at their current levels Russian sugar could also find its way to Ukraine, Moldova and other Central Asian countries. "This is the first time in 12 years that Russia has produced sugar cheaply enough to sell to the world market," said the official, adding that the government has put together a working group to help support exporters. Good weather and a rise in plantings have swung Russia from the major importer it has become since the Soviet Union's collapse in the early 1990s.
Soyuzrossakhar now expects producers to harvest a record 5.3 million metric tons of sugar in 2011-12, as average yields this season have reached as high as 40 tons a hectare. "Russia, the world's undisputed leading importer until the middle of the last decade, is not expected to be even among the 10 largest importers in 2011-12," said the International Sugar Organization. For refiners, however, the influx of sugar has caused headaches. Domestic white sugar prices slumped 26% during August reaching $710 a ton by mid-September--making Russian supplies competitive compared with $784.60/ton offered in London--and forecasters say they may fall further in October and November as the local market struggles to absorb the supplies. A person in major sugar producer Rusagro said the government may even be forced to resort to intervention purchases to stabilize the market.
Yet poor infrastructure could still hinder Russia's exporting prospects. Russia hasn't built a new sugar-processing plant in the last 25 years, and 60% of the processing equipment is worn out, according to the U.S. Department of Agriculture's Moscow attache. Already refiners are struggling to process the huge harvest. The person at Rusagro said the company's seven refineries are producing 45,000-50,000 a month but still can't cope with the excess sugar from the fields. Meanwhile, ongoing reforms of the state-run railway authority RZhD had led to a severe shortage of specialized railway cars to move the sugar to sea ports and land border crossings. The Raevsky sugar refinery has already been forced to stop processing the new harvest due to a backlog of supplies. And although Soyuzrossakhar has appealed to the federal anti-monopoly authority to help combat the shortage, so far nothing has been done.

Coffee Falls in Robusta Rout While Starbucks Cup Costs $1.50: Commodities (Source: Bloomberg)
Farmers from Vietnam to Brazil will supply a record robusta crop in the marketing year that begins next month, extending a slump in coffee futures that spurred Kraft Foods Inc. (KFT) and J.M. Smucker Co. to cut prices. Production will rise 5.4 percent to 3.29 million metric tons (54.9 million 60-kilogram bags) in the 2011-12 season, the U.S. Department of Agriculture estimates. Vietnam and Brazil, the biggest producers, will reap the most beans ever. Robusta traded on the NYSE Liffe exchange in London fell 26 percent since March, and will drop another 5 percent to $1,884 a metric ton by Dec. 31, according to the mean in a Bloomberg survey of 16 brokers, traders and analysts.
Robusta, the second most-consumed coffee after arabica, is reversing a rally that more than doubled prices in the 12 months ended in March as shortages emerged. That was part of a global surge in food prices that the United Nations estimates reached a record in February. U.S. food-price inflation will be as much as 3.5 percent next year, compared with as much as 4 percent this year, the USDA estimates.

US Ethanol Plants Invest In Corn Oil As Industry Matures (Source: CME)
U.S. ethanol producers faced with slowing growth in demand are turning to a fledgling market for corn oil to help boost revenues. Several of the nation's largest ethanol companies, including Green Plains Renewable Energy and Valero Energy Corp., have invested in equipment to produce the oil. Extracted during the production of ethanol, corn oil is mainly used to make animal feed and biodiesel, but also can be produced for cooking. The volumes ethanol producers plan to make are expected to be small compared to the 2-billion-gallon U.S. market for soybean oil, which is nearly interchangeable. Still, the new product adds an important revenue stream for ethanol makers who face flattening demand, historically high corn prices and volatile energy markets.
Ethanol production has been profitable throughout 2011, with the Renewable Fuels Association projecting production at a record 13.7 billion gallons. Still, the rapid gains in demand are seen slowing. The industry is nearing 15 billion gallons, the amount federal law requires refiners to blend into gasoline by 2015. Further gains past the federal mandate are hampered by weakening support in Congress, concerns over the effects that increased ethanol use would have on older engines, and changes that gas stations would have to make to their pumps. Ethanol producers are "going to have to be creative in ways to generate more profit," said Jason Ward, an analyst with Northstar Commodity in Minneapolis. Demand "really can't go much higher," Ward said. Green Plains Renewable, after making a $20 million investment in 2010 to produce corn oil, projects between $30 million and $40 million in new, annual revenue from the liquid. Producing corn oil is "low-hanging fruit," the company's Chief Executive Todd Becker said.
In the quarter ended June 30, corn oil accounted for $6.4 million in operating income, up from zero the prior year. Operating profit was $11.6 million for ethanol production. Other large companies, including Iowa-based Poet, the world's largest ethanol producer, and Valero are adding similar equipment to their existing plants. The investments are a natural progression for the industry, said Jeff Lautt, Poet's president, whose company is in the midst of an effort to diversify revenue. "You look at any other industry that's developed over the last 100 years, once they mature they start to broaden out, and ways to create new revenue or bottom-line margin," Lautt said. The new supply of corn oil from ethanol plants is not food grade, although Lautt said Poet may try making food-grade corn oil eventually.
A spokesman for Valero, which entered the ethanol business in 2009 after buying plants from bankrupt Verasun Energy Corp., said the decisions to invest in corn oil reflects the relative health of the industry as it puts money back into the business. Ethanol plants have a ready buyer in the biodiesel industry, which can use either corn oil or soybean oil in production. And corn oil right now sells at a discount to soybean oil, said Sander Cohan, an analyst at ESAI Inc. Although increased corn oil production provides added competition for soybean oil makers, it isn't likely to saturate the market, industry officials said. Even if all producers adopted the technology this year, total output would be under 270 million gallons, said Becker of Green Plains. Corn oil is a byproduct of the ethanol production, a fermentation process in which the starch is separated from the kernel and turned into sugar. The technology employed by most ethanol plants extracts corn oil in fermentation process.

USDA Pays Out $80 Million To Biofuels Companies (Source: CME)
The U.S. Department of Agriculture announced Tuesday it is giving out about $80 million this year to 163 companies that produce biofuel from alternative sources like animal fats and wood chips. The payments this year go to companies like Ever Cat Fuels in Isanti, Minn., which makes biodiesel from plant oils and animal fat. Ever Cat will get a check for $98,507, but other companies will get a lot more, according to the USDA. The amount is based on how much biofuel the company produces from sources other than corn. Pennsylvania-based Smarter Fuel, Inc., will get about $4.8 million because it produces fuel from waste products and Kansas-based Ese Alcohol will get about $81,000 because it uses leftover seed to make ethanol.
"The payments I am announcing today represent the continuing commitment of the Obama administration to work with producers to provide the biofuel necessary to reduce our nation's dependence on foreign energy sources," said U.S. Department of Agriculture Secretary Tom Vilsack. "The payments support America's growing advanced biofuel industry." The $80 million worth of payments announced Tuesday are the fiscal year 2010 installment for the "Advanced Biofuel Producer Payments" program and the USDA is already evaluating companies for FY 2011 payments, a spokesman said. The payments are authorized in the 2008 farm bill by Congress, according to the National Biodiesel Board, and meant to "ensure an expanding supply of domestic energy." "These payments will create jobs and economic activity while helping the biodiesel industry advance new technologies and improve efficiency," said Anne Steckel, a vice president for the biodiesel group.
Most of the biofuel produced in the U.S. now is corn-based ethanol, a heavily subsidized fuel that consumes about 40% of the corn grown in the U.S. Ethanol producers are expected to use about 5 billion bushels of corn this year to make the fuel. The U.S. spends about $6 billion per year subsidizing ethanol-blended gasoline with a tax credit of 45 cents per gallon. There is also a tax of 54 cents per gallon on imported ethanol

Euro Coal-Oct S.Africa prices dip, Indians delay
LONDON, Sept 27 (Reuters) - Prompt physical coal prices for October South African cargoes dipped again on Tuesday as suppliers scrambled to find homes for shipments soon due to load, but further forward prices saw slight gains."Apart from the very prompt month, prices are generally a little stronger in line with everything else," one trader said.
Stocks on the world's major exchanges were headed on Tuesday for their largest daily gain in 16 months and commodities jumped. Oil rose 2 percent as euro zone efforts to solve the region's debt crisis lifted markets.    

India 2011/12 coal import needs may jump to 114 mln T
NEW DELHI, Sept 27 (Reuters) - India could import about 114 million tonnes of coal in 2011/12, up by over a third from the previous year, mainly from Indonesia and South Africa to help prevent power stations and factories in Asia's third-largest economy from slowing down.
Coal Minister Sriprakash Jaiswal said on Tuesday India's coal demand was seen at 696 million tonnes in 2011/12 against an expected local output of 554 million tonnes. State-run Coal India , the world's largest coal miner, has stocks of about 28 million tonnes, reducing the overall shortfall.

India 2011/12 coal demand seen at 696 mln T
NEW DELHI, Sept 27 (Reuters) - India's coal demand is seen at 696 million tonnes in 2011/12 against an expected local production of 554 million tonnes, Coal Secretary Alok Perti said on Tuesday, widening the gap by 5.2 percent from a previous estimate.
Earlier estimates have suggested Asia's third-largest economy is likely to import about 135 million tonnes in the year ending March 31, 2012.

Brent slips as euro zone doubts resurface
LONDON, Sept 28 (Reuters) - Brent crude fell below $107 per barrel on Wednesday as worries about details of a euro zone debt bailout fund prompted investor caution after a sharp gain the previous session.
"The headline-reading trading machines cannot understand the complexity of Europe, so big up moves (are) followed by big down moves as they are unable to have a proper trading read on Europe," he said.

Shell says fire at Singapore refining complex
SINGAPORE, Sept 28 (Reuters) - A fire broke out at Royal Dutch Shell's  petroleum complex offshore Singapore on Wednesday, the company said.
"We confirm that a fire in the Pulau Bukom Manufacturing Site occurred today at approximately 1.15pm. Emergency responders are on the scene and the fire is contained. No injuries have been reported and the rest of the site's operations are unaffected," a spokesman said.

Oil Declines for Second Day on Concern Over European Debt, U.S. Stockpiles (Source: Bloomberg)
Oil declined for a second day in New York, heading for the biggest quarterly drop since 2008, as investors speculated that fuel demand will falter as U.S. crude stockpiles increase and Europe’s debt crisis lingers. Futures slipped as much as 1.7 percent after German Chancellor Angela Merkel said policy makers may review Greece’s second bailout after inspectors rule on whether the country is meeting the terms of its current package. Crude supplies rose 1.92 million barrels to 341 million last week, the U.S. Energy Department said yesterday. Crude for November delivery dropped as much as $1.35 to $79.86 a barrel in electronic trading on the New York Mercantile Exchange and was at $79.96 at 9 a.m. Sydney time. The contract yesterday fell $3.24, or 3.8 percent, to $81.21. Futures are down 10 percent this month and 13 percent this year. Prices have dropped 16 percent since the end of June, the biggest quarterly loss since the last three months of 2008.

Iron Ore-Spot prices at 2-1/2-month lows as buying thins
SINGAPORE, Sept 28 (Reuters) - Spot iron ore prices fell to their lowest since early July on slow buying from Chinese mills, and more losses may be ahead with Shanghai steel futures falling on Wednesday for the fourth time in the past five sessions.
Steel producers in China, the world's biggest iron ore buyer, continued to step back from the iron ore market, worried about slowing steel demand and the uncertainty facing the global economy.

China steel output, iron ore pricing in focus at summit
SINGAPORE, Sept 27 (Reuters) - Whether China can sustain its rapid pace of steel production while developed economies are on shaky ground and how tight  supplies will continue to buoy iron ore prices are questions on the agenda for China's biggest industry gathering this week.
Chinese steel mills are also expected to use the occasion to push for a more favourable iron ore pricing scheme as elevated spot prices cut into profits, ahead of a plan by industry group CISA to launch China's version of a reference index next month to gain more pricing power.

Gold Tumbles as Rout in Stocks, Commodities Forces Some Investors to Sell (Source: Bloomberg)
Gold fell for a second day, paring a 12th quarterly gain, as concern European leaders may not stem the region’s debt crisis hurt stocks and commodities, forcing some investors to sell the metal to cover losses elsewhere. Immediate-delivery gold lost as much as 1.5 percent to $1,584.38 an ounce, and traded at $1,593.35 at 8:27 a.m. in Singapore. December-delivery bullion lost as much as 2 percent to $1,586.20 an ounce in New York. Gold has fallen on “traders needing cash for margin calls on weak equity prices and newfound strength in the U.S. dollar,” Jonathan Barratt, managing director at Commodity Broking Services Pty., wrote in a report. “The turmoil in Europe only seems to be getting worse.”

Tiger Group to bet big on containerships
SINGAPORE, Sept 28 (Reuters) - Maritime investment firm Tiger Group could "very easily" buy as many as 50 large containerships in the next two years, betting that the box ship industry will see the most growth in  traditional freight markets, the firm's managing director said.
The Hong Kong-based firm, with assets of more than $10 billion, looks to raise as much as $6 billion to invest in shipping over the next few years through its companies, said Tiger Group's Managing Director Julian Proctor.

Baltic index turns negative, outlook volatile
LONDON, Sept 27 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, turned negative on Tuesday with mounting vessel supply and freight derivatives contract selling knocking sentiment.    
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.

Private equity, bonds to drive ship finance amid credit crunch
SINGAPORE, Sept 27 (Reuters) - Global shipping firms must look to private equity funds and corporate bond markets to obtain capital to expand their operations as traditional bank financing dries up in the West, industry executives said on Tuesday.
European banks, traditionally the top lenders to global shipping companies, have tightened credit lines as the region's sovereign debt crisis spills over to financial institutions.

20110929 1004 Soy Oil 7 Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures tumble to a 10-month low, fueled by investment-fund selling in the face of global economic fears and seasonal harvest weakness. Traders are cautious of risk amid slowing economic growth, with worries of slumping demand sparking another round of broad-based commodity selling, analysts say. Investment funds were estimated net sellers of 12,000 soybeans contracts today, a large amount. Harvest pressure added to the lower theme, with traders also concerned that the market is failing to generate export business despite a more than $2/bushel slide the past month. CBOT November soy ends down 3.1% at $12.23 1/2.

Soybean Meal/Oil (Source: CME)
Soy-product futures fall in unison with soybeans, driven lower by broad-based commodity selling. Global economic uncertainty is making traders nervous about holding riskier assets on fear of slower demand, analysts say. CBOT December soymeal finishes down 3.2% at $319.90/short ton while soyoil slides 1.9% to 51.76c/pound.

U.S. soybean exports primed for a boost: Gavin Maguire
--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 28 (Reuters) - The sharp decline across commodity markets has reset global soybean prices and should help make U.S. soy exports more competitive in coming months.
For much of 2011, U.S. soybeans tended to trade at a premium to crops in other regions, keeping U.S. soy exports in check. But with U.S values much more closely aligned with those of South America, U.S. exporters should see a notable pick-up in export activity over the remainder of 2011.

Palm oil slips 2 percent on euro zone concerns
JAKARTA, Sept 28 (Reuters) - Malaysian palm oil futures fell by as much as 2 percent, weighed down by losses in other edible oils and investor worries about the ability of European leaders to tackle a debt crisis threatening the global financial system.
"The euro zone problems are still uncertain -- there doesn't seem to be a consensus," said a Kuala Lumpur-based trader.

Rapeseed area dips in Germany, rises in France, UK
LONDON, Sept 27 (Reuters) - Rains look to have reduced the area drilled with rapeseed in Germany but high prices have boosted sowings in both France and Britain, where crops have made good early progress, crop analysts said on Tuesday.
Farmers in Germany were still harvesting wheat earlier this month following repeated rain delays when they would like to have been drilling rapeseed. The wheat harvest is normally completed in August.

Dryness threatens Brazil's soybean crop -Oil World
HAMBURG, Sept 27 (Reuters) - Dryness is threatening the soybean crop in Brazil, the world's second largest producer of the oilseed, as sowings in the country face delays, Hamburg-based analysts Oil World said on Tuesday.
"Crop prospects for early 2012 are in jeopardy," Oil World said. "The threat of declining yields has increased."

Indonesia will delay the implementation of a regulation on industrial forests that would have  allowed planters, especially those growing palm oil, to cultivate areas reserved for timber  and other domestic raw materials.  The delay is aimed at making improvements to the  proposed rule to make it consistent with previous decrees, and the government will issue  the revised regulation as soon as possible, forestry minister Zulkifli Hasan said. (BT)