Tuesday, October 4, 2011

20111004 1813 FCPO EOD Daily Chart Study.


FCPO closed : 2810, changed : -35 points, volume : higher.
Bollinger band reading : downside biased with possible pullback correction.
MACD Histrogram : falling, seller in control.
Support : 2800, 2770, 2750, 2720 level.
Resistance : 2850, 2900, 2920, 2950 level.
Comment :
FCPO closed recorded loss with rising volume participation while overnight soy oil ended lower and currently weaker. Meanwhile, crude oil continue to trade weaker.
Increased stockpiles for corn and wheat Sep 2011 USDA data and slowing down demand due to gloomy global economy development resulted broad commodities including soy oil and crude palm oil to fell lower.
Daily chart formed a down bar candle closed below lower Bollinger band level after market opened higher and slide downward all the way (with small intervals rebound) to closed near the low of the day.
Chart reading suggesting a downside biased market development with possible pullback correction testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20111004 1756 FKLI EOD Daily Chart Study.


FKLI closed : 1369, changed : +10.5 points, volume : higher.
Bollinger band reading : pullback correction downside biased.
MACD Histrogram : recovering, seller taking profit.
Support : 1360, 1350, 1345, 1337 level.
Resistance : 1375, 1385, 1395, 1400 level.
Comment :
FKLI closed recorded gain with increasing volume transacted doing 7.5 points premium compare to cash market that ended lower. Overnight U.S. market closed recorded substantial loss and today's Asia markets ended mostly lower while European markets currently trading in negative zone.
News on European governments signaled bondholders may have to take bigger losses on Greek debt further threaten investors confident dragged global markets to perform poorly.
Back home, coming Friday 2012 budget announcement may be the sole reason that lift FKLI to closed higher despite the global negative sentiment.
Daily chart formed an up bar candle closed in between lower and middle Bollinger band level after market opened lower, waving upward testing support and breaking resistant level before eased little lower and closed off the high of the day.
Chart reading remained suggesting a pullback correction downside biased market development testing support and resistance level with MACD indicator having little positive cross over.
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.

20111004 1710 Regional Markets EOD Daily Chart Study.

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

20111004 1630 Global Market & Commodities Related News.

World stocks at 15-month low on Greek default fears
TOKYO, Oct 4 (Reuters) - Global stocks fell to a 15-month low, pinning Asian stocks near a 16-month low, as investors shed riskier assets on growing doubts over Greece's ability to avoid default, fuelling fears of global financial turmoil and recession.
"Investors are cutting their exposure to risk as the most extreme risks -- such as Greek default -- are looming closer than they expected," said Jung Sang-jin, a senior fund manager at Dongbu Asset Management.

FTSE 100 Stocks Decline for Fifth Day; Barclays, Rio Tinto Shares Retreat (Bloomberg)
U.K. stocks declined for a fifth day as policy makers struggled to reassure investors they can contain the European debt crisis that is threatening to curb economic growth. Barclays Plc (BARC) fell 3.4 percent. Rio Tinto Group declined 2 percent. The benchmark FTSE 100 Index slid 84.39 points, or 1.7 percent, to 4,991.11 as of 8:28 a.m. in London. The FTSE All- Share Index fell 1.6 percent, while Ireland’s ISEQ Index retreated 2.8 percent.

European Stocks Decline for Third Day on Crisis (Bloomberg)
European stocks dropped for a third day amid waning optimism policy makers will be able to resolve the region’s debt crisis. Asian shares fell while U.S. index futures were little changed. Dexia SA (DEXB) lost 32 percent after the board asked Belgium’s biggest bank by assets to solve its “structural problems.” Air France-KLM (AF) Group and International Consolidated Airlines Group slid more than 3 percent after the head of the IATA industry association said profit forecasts may be unsustainable. The benchmark Stoxx Europe 600 Index fell 1.7 percent to 219.94 at 8:26 a.m. in London. The gauge has fallen 24 percent from this year’s peak on Feb. 17 as European and U.S. economic reports trailed forecasts, adding to concern that the global economic recovery is at risk. The decline has left the measure trading at 9.2 times estimated earnings, near the cheapest since March 2009, data compiled by Bloomberg show.


Food, fuel price falls stir Asia inflation concern
NEW DELHI, Oct 4 (Reuters) - Anyone hoping that recent falls in commodity prices would provide a boost to powerhouse Asian economies and help lift the developed world out of recessionary danger will be disappointed. The region's focus remains firmly on inflation.

FOREX - Dollar near 9-mth high as bank fears grip market
TOKYO, Oct 4 (Reuters) - The dollar was supported near a 9-month high against a basket of currencies on Tuesday with the market gripped by fear that the debt crisis in Europe could unleash substantial damage on the global economy.
The euro hit a nine-month low in early Tuesday trade before posting a slim recovery, while the Australian dollar slipped to a one-year trough as market players continued to pull funds out of shares, copper and other risky growth-linked assets.

Commodities from crude to corn have slid in the last quarter, with many showing the most dramatic losses since 2008, when Lehman Brothers collapsed. The turnaround follows sharp gains earlier in 2011 when investors flocked to commodities on signs of strengthening economies.
US corn, soy fall on recession fears, supply pressure
SINGAPORE, Oct 4 (Reuters) - Chicago corn slid 0.7 percent , while soy fell around half a percent amid growing fears of a global recession and a rapidly progressing U.S. harvest that is ensuring ample supplies.
"From a fundamentals perspective the market is looking to see at what point this pullback in prices starts to simulate demand," said Brett Cooper, senior manager of markets at FCStone Australia.

Costa Rica exports more coffee in 2010/11 season-Icafe
SAN JOSE, Costa Rica, Oct 3 (Reuters) - Costa Rica ended its 2010/11 coffee harvesting season with 2.8 percent more exports than during last year's cycle as producers took advantage of higher prices for their high-quality arabica beans, the national coffee institute Icafe said on Monday.
September coffee exports from the Central American country more than doubled from the same month in 2010 reaching 29,333 60-kg bags, Icafe said.

World cotton output seen up, US to miss forecast-ICAC
WASHINGTON, Oct 3 (Reuters) - World cotton output should increase in 2011/12, moderating the previous year's volatile prices, but United States production will miss government estimates, an international farm group said on Monday.
The International Cotton Advisory Committee secretariat said reports of crop failures in Texas and surveys of crop insurance claims in the United States suggest lower 2011/12 yields than the U.S. Department of Agriculture has projected.

Argentine soy crushing falls 21 percent in August
BUENOS AIRES, Oct 3 (Reuters) - Argentine soy crushing fell 21 percent year-on-year in August to 3 million tonnes, following a record 2009/10 crop and a smaller 2010/11 harvest, the government said in its latest crushing report.
Argentina is the world's largest supplier of soyoil and soymeal and the No. 3 exporter of the unprocessed oilseed.
In the first eight months of 2011, 24.4 million tonnes of soy were crushed in the South American country, up 3.4 percent from the same period last year, the Agriculture Ministry said.

La Nina-related dryness weighs on Argentine farming
BUENOS AIRES, Oct 3 (Reuters) - Parched Argentine wheat and corn crops should get some relief from rains later this week, easing the threat to future yields, a local weather forecaster said on Monday.
Scattered showers have done little over the last week to ease worries that the La Nina weather phenomenon will bring prolonged dryness for a second year running, but rains forecast for this week could help.

Rain to set next Brazil coffee crop in motion
BRASILIA, Oct 3 (Reuters) - Rains will reach Brazil's southeastern coffee belt early this week, prompting trees to flower for the 2012 crop, forecaster Somar said on Monday, and allaying fears dryness could persist and cut output.
The next crop from the world's top grower would normally be larger next year as it falls in an 'on-year' in the biennial cycle, feeding a larger supply than this year into what remains a tightly supplied market.Rains this week would not be heavy but Somar meteorologist Cassia Beu said they would be heavy enough to prompt

Brazil new soy crop seen at record 75.2 mln T-Celeres
SAO PAULO, Oct 3 (Reuters) - Brazil's new 2011/12 (September-August) soybean crop is seen at a record 75.2 million tonnes versus 74.9 million tonnes harvested last season, analysts Celeres said on Monday.
Area planted to soybeans is forecast to reach record territory at 25 million hectares (61.8 million acres), up 3.6 percent from last season, Celeres said in its monthly forecast of the crop.

Weather brightens Ivorian cocoa crop prospects
ABIDJAN, Oct 3 (Reuters) - Ivory Coast's cocoa growing regions got light rain mixed with hot weather last week, perfect conditions for the development of the 2011-12 main crop, farmers said on Monday.
The West African nation kicked off its new season on Monday after a record 2010-11 harvest that yielded close to 1.5 million tonnes, and farmers said the first three months of the new season will bring abundant supply and good quality.

I.Coast cocoa body proposes sector overhaul
ABIDJAN, Oct 3 (Reuters) - Ivory Coast's cocoa sector body CGFCC has proposed a guaranteed price system for farmers of the world's biggest cocoa crop in an industry overhaul designed to give them more reliable incomes, according to a CGFCC document obtained by Reuters.
The long-awaited reform was delayed by Ivory Coast's descent into a four-month conflict after last year's election and is the last remaining hurdle in the West African country's bid for a debt relief programme with international donors.

Swiss coffee body seeks European arbitration panel
LONDON, Oct 3 (Reuters) - The Swiss Coffee Trade Association (SCTA), whose members handle the majority of world coffee exports, is lobbying for a pan-European arbitration panel after defaults caused problems for its members in 2010/11, the president of the association told Reuters.
"The challenge is to convince the European Coffee Federation of the importance of such a need and to convince the existing local arbitration bodies," said Nicolas Tamari, president of the SCTA and director-general of Sucafina, a Geneva-based coffee trading house.

Vietnam 2011/12 arabica output to rise 25 pct-top exporter
HANOI, Oct 3 (Reuters) - Vietnam's arabica output in the 2011/2012 crop year is forecast to rise by a quarter from the previous season to 50,000 tonnes, or 833,000 bags, thanks to an increase in both planting area and average yields, a leading exporter said on Monday.
Vietnam is the world's largest producer of robusta coffee but its arabica production is tiny compared with global producers. Still, higher arabica output plus a small amount of beans coming from neighbouring Laos could serve as an alternative supply for trading firms and roasters.

Brent falls below $101 on persisting Greek crisis
SINGAPORE, Oct 4 (Reuters) - Brent crude fell more than a dollar to below $101 a barrel , pressured by growing fears that a Greek debt default could spread and ignite a global recession.  
"Brent crude continues to feel the weight of economic concerns as it appears that Greece will miss deficit targets and worries about the health of European banks remain," J.P. Morgan said in a research note.

Libya sees major pick-up in oil output in Oct
TRIPOLI, Oct 3 (Reuters) - Libya will start pumping crude at two major oilfields in about two weeks, doubling production to 700,000 barrels a day by year-end, the country's top oil industry official told Reuters in the latest sign that output is being restored far quicker than many had expected.
While the resumption in operations at Repsol-operated  Sharara field and Eni  part-owned Elephant will help to boost output, the head of the National Oil Corp also warned that Libya's biggest oil terminal at Es-Sider may take more than a year to be fully repaired.

China growth not enough to alone boost metals -CRU
LONDON, Oct 3 (Reuters) - Chinese growth prospects remain healthy but at lower rates and the world's top copper consumer cannot boost commodity markets on its own the way it did some three years ago, metals consultancy CRU said on Monday.
Paul Robinson, Group Manager Non Ferrous Metals at CRU, told a London Metal Exchange (LME) Week seminar that China would not build up stockpiles of the red metal as it did then.

Insights into uncertain metals market
Oct 3 (Reuters) - The metals industry gathers in London for the annual LME Week, with many participants hoping for an insight into commodity markets after a torrid few weeks due to global economic uncertainty.
Here are some analysts' views of what could lie ahead:

Aluminium prices can't fall much further -RUSAL
MOSCOW, Oct 3 (Reuters) - Global aluminium prices cannot fall much further, with as much as two-fifths of global production already unprofitable and demand likely to hold up, a senior executive at RUSAL , the world's largest producer of the metal, told Reuters.
"Prices for aluminium, in contrast to copper, have reached their minimum," Oleg Mukhamedshin, RUSAL's director of corporate development, said in an interview ahead of LME Week in London.

CRU ranks aluminium top base metal for consumption growth prospects
LONDON, Oct 3 (Reuters) - Aluminium is top among base metals in terms of consumption growth prospects, followed by nickel, zinc, copper, lead and lastly tin, Paul Robinson, Group Manager Non Ferrous Metals at CRU, told a London Metal Exchange Week seminar on Monday.
"Aluminium is both a nation-building metal and emerging middle class metal," he said, adding said that the  beverage sector, for which alumInium is used in packaging, and the transport sector were strong.

Congo in talks with Malaysia Smelting over tin foundry
KINSHASA, Oct 3 (Reuters) - Democratic Republic of Congo is in talks with Malaysia Smelting Corporation  over the construction of a foundry in the eastern Maniema province, the central African country's mines minister said.
"Talks are very advanced with a big foreign mining company, Malaysia Smelting Corporation, to set up a foundry in Kalima," Martin Kabwelulu told a mining conference on Monday.

Copper falls a fifth day on Greece default fears
KUALA LUMPUR, Oct 4 (Reuters) - Copper fell for a fifth day as the threat of Greece's debt default increased, heightening concern the global economy will plunge into a recession and reduce demand for industrial metals.
On Monday, LME copper rebounded from its 14-month intraday low of $6,635 but still ended lower at $6,990, compared with Friday's close of $7,018.50.

China total copper consumption 8.2 mln T in 2011-Antaike
LONDON, Oct 3 (Reuters) - China's total copper consumption is expected to rise to about 8.2 million tonnes this year from 7.44 million tonnes last year, Li Yusheng, senior copper analyst at state-backed research firm Antaike, said on Monday.
Total consumption included refined copper and copper in scrap used in the manufacturing of semi-finished copper products. Of the total, refined copper would be 7.38 million tonnes in 2011, Li told a seminar at the start of LME Week in London.

Rare earth processor Rhodia sceptical on stocks
LA ROCHELLE, France Oct 3 (Reuters) - French chemicals group Rhodia does not see stockpiling of rare earths by Europe as a pertinent response to Chinese export curbs, favouring efforts to diversify supply through mining and recycling projects, a senior executive said.
China accounts for more than 95 percent of worldwide output of rare earths and its decision last year to slash export quotas sent prices soaring and turned rare earths -- which are prized for their use in products like flat-screen televisions and electric cars -- into a political issue.

Metorex says copper output up 15 pct in July-Sept
JOHANNESBURG, Oct 3 - South African miner Metorex , the takeover target of Chinese metals group Jinchuan, said on Monday its copper output for the three months to end-September rose 15 percent from the previous quarter.
Metorex said in a statement production rose to 15,202 tonnes from 13,218 tonnes in the quarter to end-June, while cobalt production rose 11 percent to 942 tonnes.

METALS - Copper pulls up from 14-month low after US data
NEW YORK/LONDON, Oct 3 (Reuters) - Copper stemmed its worst sell-off since the financial crisis after a stronger-than-expected U.S. manufacturing expansion pulled prices up from a 14-month low hit early on Monday.
Worries about euro zone debt, shrinking global manufacturing and demand from top consumer China pressured prices, with benchmark copper on the London Metal Exchange  ending at $6,990 a tonne, down from Friday's close of $7,018.50, but recovering from a session low of $6,635, its weakest since July 21, 2010.

PRECIOUS - U.S. gold rises 1 pct on fears of Greek default
SINGAPORE, Oct 4 (Reuters) - U.S. gold futures jumped 1 percent on Tuesday as investors dumped equities and turned to bullion on growing fears that a Greek default could trigger another global recession.    
As safe-haven buying lifted gold prices, stocks in Asia extended losses on doubts over Greece's ability to avoid default, copper fell for a fifth day and Brent crude fell more than a dollar to below $101 a barrel.

U.S. gold rises 1 pct on fears of Greek default
SINGAPORE, Oct 4 (Reuters) - U.S. gold futures jumped 1 percent on Tuesday as investors dumped equities and turned to bullion on growing fears that a Greek default could trigger another global recession.    
"A sustained breach of $1,700 is needed for gold to resume its upward ascent. After the sell-off in gold earlier, this has reduced some of the speculative positions."

20111004 1153 Global Market & Commodities Related News.

GLOBAL MARKETS-Stocks, euro plunge on Greek default fears
NEW YORK, Oct 3 (Reuters) - World stocks fell to a two-year low and the euro tumbled to its weakest level against the yen in more than a decade on Monday as growing expectation of a Greek default increased fears of another global recession.
An admission by Athens that it will miss its deficit target of 7.6 percent this year reignited worries about a Greek default. The price of U.S. crude oil tumbled 2 percent, while a bid for safety stoked demand for U.S. Treasury debt.

Asia Stocks Fall on Europe Debt Crisis Concern (Bloomberg)
Asian stocks fell, driving a regional benchmark gauge toward its lowest close in more than two years, as disagreement among policy makers over how to resolve Europe’s debt crisis dimmed the outlook for exporters and banks. Esprit Holdings Ltd., a clothier that counts Europe as its biggest market, dropped 4.9 percent in Hong Kong. Samsung Electronics Co., which gets a fifth of its sales in Europe, lost 2.6 percent in Seoul. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s No. 1 listed lender by market value, sank 3.5 percent in Tokyo. Mitsubishi Corp., Japan’s biggest commodities trader, slumped 6.7 percent as oil and metal prices tumbled.
The MSCI Asia Pacific Index fell 1.8 percent to 108.18 as of 12:10 p.m. in Tokyo, extending its biggest quarterly decline in almost three years. The measure is headed toward the lowest close since July 2009 as benchmark indexes worldwide drop more than 20 percent from their peaks, entering a so-called bear market. Asian stocks also fell today after Goldman Sachs Group Inc. cut its forecast for earnings growth in Asia excluding Japan.

COMMODITIES-Bruised copper cuts loss on US data; gold jumps
NEW YORK, Oct 3 (Reuters) - Upbeat U.S. economic reports shored up copper from a 14-month low and crude from a two-month low on Monday, but Europe's debt crisis and weak global growth kept pressure on most commodities after a September rout.
The Reuters-Jefferies CRB index of 19 commodities fell to its lowest since Nov. 23 as October trading commenced, before steadying to end off 0.6 percent after the U.S. Institute of Supply Management's September manufacturing index posted a rise that beat expectations.

US crude tumbles more than a dollar on Greece, dollar
SINGAPORE, Oct 4 (Reuters) - U.S. crude oil fell more than a dollar on Tuesday, pressured by debt concerns in Greece and a stronger dollar.
U.S. crude for November delivery  fell to an intraday low of $75.92 a barrel, down $1.69 in early Asia trading.

Libya sees major pick-up in oil output in Oct
TRIPOLI, Oct 3 (Reuters) - Libya will start pumping crude at two major oilfields in about two weeks, doubling production to 700,000 barrels a day by year-end, the country's top oil industry official told Reuters in the latest sign that output is being restored far quicker than many had expected.
While the resumption in operations at Repsol-operated  Sharara field and Eni  part-owned Elephant will help to boost output, the head of the National Oil Corp also warned that Libya's biggest oil terminal at Es-Sider may take more than a year to be fully repaired.

NYMEX-Natgas ends down for 4th day, front hits 11-mth low
NEW YORK, Oct 3 (Reuters) - U.S. natural gas futures ended lower on Monday for a fourth straight session, with moderate weather forecasts and concerns about growing supplies again driving the nearby contract to another 11-month low.
"The economic news doesn't look good, oil is down and the weather forecast doesn't look too bullish. It looks like storage is going to get pretty full by the time the weather turns colder," a Texas-based trader said, noting big storage builds over the last few weeks, with more expected.

EURO COAL-Drops $1.50/T on Greek debt
LONDON, Oct 3 (Reuters) - Prompt physical coal prices fell sharply on Monday by around $1.50 a tonne after Greece's admission that it will miss its deficit target this year sent markets reeling.
"Everything's gone to hell today, in almost every market, nobody's bidding, everybody's on the sidelines waiting for the dust to settle," one European trader said.

20111004 1026 Local & Global Economic Related News.

The government yesterday withdrew the Kampung Baru Development Corp Bill  2010 and replaced it with the Kampong Baru Development Corp Bill 2011 with some amendments, including having more representatives from among the  residents.
Among the amendments are the creation of the  Kampong Baru  Development Corp (KBDC) deputy chairman post from among the landowners and heirs and increasing the number of members of the  Advisory Council to the KBDC, from among the owners and heirs, from  two to six.
Of the 15-member Advisory Council, including the KBDC chairman post,  five of the members comprised the residents’ representatives, including  the deputy chairman. (Bernama)

The government's initiatives to be unveiled in Budget 2012 on Friday will help  ease the cost of living of low-income earners, PM Datuk Seri Najib Tun  Razak said Monday. Every initiative to be announced would be in line with the  government's firm commitment to cut down the national fiscal deficit.
 The government would continue to implement various programmes and  activities to help the low-income group like extending financial aid;  subsidies; incentives; skills training; healthcare services; and housing,  he said.
As to the economic growth, Najib said the economy grew by 4.4% in  1H11 and a more rigorous growth momentum is on the  cards in 2H11.  (Bernama)

Despite economic uncertainties in the U.S. and Europe, Malaysia and India are on track to achieving the US$15bn target in bilateral trade by 2015, said  Deputy Minister of International Trade and Industry, Datuk Jacob Dungau  Sagan. In 2010, trade between India and Malaysia increased 14.8% to US$8.9bn.  From Jan to Jul 11, trade with India amounted to US$7.3bn, an increase of 36%  yoy, he said. (BT)  

Malaysia's retail sales growth has been revised upwards to 6.5% from 6.0%  previously, following a 8.2% growth in the first half of 2011. This growth will  bring total retail sales for the year to RM82bn. Retail sales grew 8.4% in 2010,  with total sales value estimated at RM77bn. Malaysia Retailers Association  (MRA) said in its latest Malaysia Retail Industry Report, that retailers saw  sales rise by 9.1% in the April-June 2011 period as they offered attractive  discount to lure shoppers. Rising costs and discounts saw retailers' profit  margins being squeezed. (BT)

The US Senate voted to advance legislation designed to press  China to let its  currency rise in value, setting up a debate between lawmakers who say the bill  will create jobs and critics who warn it could spark a trade war. (Reuters)


US: Construction spending in US unexpectedly increases as multifamily gains
Construction spending in the US unexpectedly rebounded in August, propelled by the biggest jump in state and local government outlays in more than two years. The 1.4% gain reversed the revised 1.4% drop in July, Commerce Department figures showed today in Washington. The median estimate called for a 0.2% decline. The industry was up 1.4% from August 2010 before adjusting for seasonal variations, the first positive reading this year. Increased building of multifamily residences, like apartments and townhouses, adds to evidence that Americans are moving away from home buying in favor of renting. Even with the gain in state and local spending in August, public construction was down 5.3% y-o-y, showing the pain caused by budget cuts. (Bloomberg)

US: Manufacturing unexpectedly accelerates as export demand spurs output
Manufacturing in the US unexpectedly accelerated in September, propelled by gains in exports and production. The Institute for Supply Management’s factory index climbed to 51.6 last month from 50.6 in August, the Tempe, Arizona-based group said today. A level of 50 is the dividing line between growth and contraction. Growing emerging economies like China and a rebound in Japan following the March earthquake and tsunami may continue to lift demand from overseas, giving a boost to companies. (Bloomberg)

US stocks fall as Greece concerns outweigh US economy data
US stocks and commodities sank, sending the S&P 500 Index and oil to more than one-year lows, and the euro slid as concern about Europe’s debt crisis overshadowed higher-than-estimated US economic data. The S&P 500 Index lost 2.9% to 1,099.23 while the Dow Jones Industrial Average fell 2.4% to 10,655.30. The Stoxx Europe 600 Index slid 1.1%. German Finance Minister Wolfgang Schaeuble opposed moves to increase the scale of the euro rescue fund, damping speculation of a breakthrough in talks to quell the debt crisis. Greece passed plans to cut its budget deficit that missed previous goals set as part of its bailout conditions. The Greek government passed EUR6.6bn of austerity measures to cut the 2012 deficit to 6.8% of GDP, missing the 6.5% goal previously set (Bloomberg)


Eurozone manufacturing shrank at its fastest pace in two years in Sep, a  business survey has shown. Markit's purchasing managers' index (PMI) of  activity dropped to 48.5 in Sep (49 in Aug). A reading below 50 indicates  contraction. Economists expected a reading of 48.4. (BBC, Bloomberg)

Japan’s  largest manufacturers sentiment remains worse than before the  Mar earthquake, signaling concern that weakening global demand will restrain  the nation’s recovery. The quarterly Tankan index of sentiment at large  manufacturers rose to 2 in Sep (-9 in Jun), the Bank of Japan said. The reading  was below the reading of 6 in Mar and in line with economists’ expectations. A  positive number means optimists outnumber pessimists. (Bloomberg)

Japanese Prime Minister Yoshihiko Noda’s proposal to raise  taxes to  rebuild from the Mar earthquake is opposed by almost six in 10 voters,  underscoring the challenge of getting opposition support for the measure. About  58% oppose the move compared with 39% who approve, the Mainichi  newspaper said, citing its own poll. (Bloomberg)

Thailand’s  inflation eased to a 6-month low in Sep as fuel prices slid,  countering an increase in food costs after the worst floods in at least 50 years  damaged crops. An index of consumer prices climbed 4.03% yoy (4.29% in Aug).  The median forecast was for a 3.95% gain. (Bloomberg)

In Indonesia, consumer prices rose 4.61% yoy in Sep (4.79% in Aug). Core  inflation slowed to 4.93% yoy (5.15% in Aug). Economists were expecting a  4.86% increase in the headline. (Bloomberg)

Indonesia’s exports rose 37.1% yoy in Aug (39.5% in Jul).  Imports rose  26.68% yoy to US$15.05bn, but contracted 7.2% from Jul. The  trade surplus widened to US$3.76bn in Aug (US$1.36bn in Jul). The economists' median  forecast was for a surplus of US$1.87bn. (Bloomberg, Wall Street Journal)

The number of  foreign tourist arrivals in Indonesia rose by 5.89% yoy to  621,100 people in Aug. (Bernama)

Indonesia’s Danareksa Sep  Consumer Confidence shows an increase to  90.5 (88.2 in Aug).

India’s exports climbed 44.3% yoy in Aug to US$24.3bn, but this was about  17% lower than Jul, when exports shot up a staggering 80%.  Imports jumped  41.8% yoy to US$38.4bn in Aug, as the  trade deficit widened to US$14.0bn.  (Wall Street Journal)

Fitch Ratings cut India’s GDP growth for the year ending 31 Mar to 7.5% from  7.7%. (Bloomberg)


India: Manufacturing expands at slowest pace in 2 1/2 years
India’s manufacturing grew in September at the slowest pace in 2 1/2 years after the central bank’s record interest-rate increases. The Purchasing Managers’ Index was at 50.4 from 52.6 in August. That’s the weakest reading since March 2009. A number above 50 indicates expansion. The Reserve Bank of India last week signaled it may maintain its tight monetary policy after Governor Duvvuri Subbarao said inflation remains above the acceptable level. (Bloomberg)


Preliminary data released by the Urban Redevelopment Authority showed  private-home prices in Singapore rose 1.3% qoq in 3Q11. Home prices were  up 2.0% in 2Q11, and 2.2% in 1Q11. (Wall Street Journal)

Pledged  foreign direct investment (FDI) into  Vietnam fell 28% yoy in  9M11. Disbursed FDI rose 2% to US$8.2bn in the same period. (Bloomberg)

It was reported that the  Philippine central bank will ease restrictions on  capital outflows. One measure being considered is allowing institutions to  buy dollars from banks to pay foreign obligations without the need to register  with Bangko Sentral ng Pilipinas. (Bloomberg)

China: China services indexes show faster growth
China’s service industries expanded at a faster pace last month, rebounding from a deceleration in August, a pickup that may ease concern the world’s second- largest economy is slowing. A purchasing managers’ index for China’s non-manufacturing industries rose to 59.3 from 57.6 in August, driven by retail spending, the China Federation of Logistics and Purchasing said on its website yesterday. (Bloomberg)

Hong Kong: Sustains retail sales boom amid financial turmoil
Hong Kong sustained its retail sales boom even amid financial market turmoil, supported by shoppers from China and a low unemployment rate. Sales surged 29% in August from a year earlier to HKD 34.3bn (USD4.4 bn), the government said. That compared with a 29.1% gain in July that was the biggest on record excluding January and February figures distorted by a Lunar New Year holiday. Hong Kong’s benchmark Hang Seng Index fell 4.4% today, after last week completing its steepest quarterly drop since 2001, as Europe’s debt crisis and signs of a slowdown in China drag down investor confidence. Market turbulence seems yet to have dented spending by China’s tourists, with nearly 3 million visitor arrivals from the country in August.

South Korea: Inflation slows from three-year high as food prices moderate
South Korea’s inflation slowed in September from the fastest increase in 3 years as food prices moderated, while still remaining above the central bank’s target range. Consumer prices rose 4.3% from a year earlier, after a 5.3% advance in August, Statistics Korea said today in Gwacheon, south of Seoul. Prices rose 0.1% from August. Bank of Korea Governor Kim Choong Soo has vowed to resume “normalizing” borrowing costs once the global economic outlook improves and Europe’s debt crisis calms down. His policy board left the benchmark interest rate unchanged for a third straight month in September even as inflation exceeded the bank’s target ceiling of 4% every month this year. (Bloomberg)

20111004 1025 Malaysia Corporate Related News.

SP Setia buys land for RM381m
SP Setia has announced the proposed acquisition of a piece of land measuring 673.2 acres in Semenyih, Ulu Langat, Selangor for RM381.25m cash. The company intends to acquire the freehold land from Spektrum Megah (M) SB for RM13 per sq ft. The land will be developed into a mixed township project with a GDV of RM4bn. The company said it will attempt to replicate the “twin project success” of Shah Alam and Setia Eco Park. The purchase consideration is 73% higher than the price it paid for the nearby Beranang land two months ago, where the company paid RM330.13m or RM7.50 per sq ft. (Financial Daily) Please see accompanying report.

SapuraCrest unit wins RM99.5m job
SapuraCrest’s 50%-owned associate has won a RM99.5m shipbuilding contract from Tanjong Offshore. SapuraCrest’s unit Labuan Shipyard & Engineering SB was awarded a job to engineer, construct, test and deliver one 77m platform supply vessel within 21 months from the date of the contract. (Financial Daily)

Wijaya Baru to buy companies with timber concession for RM256.5m
Timber company Wijaya Baru Global has made an offer to purchase two Indonesian companies, Suffolk Pte Ltd and Wealthgate Pte Ltd for a total of USD80m (RM256.48m). Both Suffolk and Wealthgate, through joint ventures, hold exclusive rights to extract and sell timber from property located in Jair, Indonesia, which Wijaya will gain should the proposed acquisition be successful. Both Indonesian companies also have discretionary rights to carry out oil palm cultivation on the property. (Malaysian Reserve)

Budget 2012 will help the low-income group, says Najib
The government’s initiatives to be unveiled in Budget 2012 on Friday will help ease the cost of living of low-income earners, Prime Minister Datuk Seri Najib Razak said. He added that every initiative to be announced would be in line with the government’s firm commitment to cut down the national fiscal deficit. Najib said the government would continue to implement various programmes and activities to help the low-income group like extending financial aid, subsidies, incentives, skills training, healthcare services and housing. (Financial Daily)

OSK Investment Bank will bring its expertise in the regional investment  banking business and small and mid-cap companies in a merger with  RHB  Banking Group. The merged entity would be synergistic according to OSK  Investment Bank CEO, U Chen Hock.
It will also allow RHB with the proposed merger to tap the Singapore  investment banking scene which is tightly regulated and not an easy one  to penetrate. U reiterated that at this stage, both organisations were still  awaiting  Bank Negara’s approval to commence negotiations on the  proposed merger. (Star Biz)

The FTSE Group and  Bursa Malaysia Bhd have launched a new set of  industry, super-sector and sector indices to complement the existing FTSE  Bursa Malaysia Index Series.
The new  FTSE Bursa Malaysia EMAS Industry indices are  designed to provide investors with a comprehensive set of tools for  in-depth analysis of the Malaysian stock market, Bursa Malaysia said in  a statement.
The new set of 10 industry, 19 supersector and 39 sector indices can be  used to execute investment strategies and to create index-linked  financial products based on sector-specific criteria.
"Designed using the industry classification benchmark (ICB), adopted  as a global standard in stock, sector and industry classification, the  indices will also enable investors to make attribution and cross-border  comparison between sectors and industries in Malaysia and other  countries," Bursa Malaysia said.
 The new indices would form part of the FTSE Bursa Malaysia EMAS  universe and would be calculated on an end-of-day basis. (Bernama)

Real property gains tax (RPGT) would probably increase after Budget 2012  but experts are divided over the quantum or the new form the tax on property sales would take. Few are hoping for the rate to be maintained but others felt  the RPGT would increase by another 5%. The current RPGT is 5% for all  properties sold within the first five years of purchase. (Starbiz)

State Community Development and Consumer Affairs Minister Datuk Azizah  Mohd Dun has reiterated her call for a review on the issuance of  gaming  licences in Sabah. She said after a study, the authorities could decide whether  there were too many gaming licences in the state. "After the study, the  authorities can make a decision if there are too many licences, whether to limit them or cancel them, or what other actions to be taken," she said. (NST)

Proton and Agensi Inovasi Malaysia (AIM) have signed a MoU to cooperate  and collaborate in innovative activities of the automotive sector. Both entities  will work together to strengthen, promote, cooperate and mutually assist each  other in accelerating the development and commercialisation of innovative  products and advanced technology in the automotive sector. (Bernama)

Proton has plans to build C segment and A segment vehicles running on  electric motors. "Other than the Exora REEV and Saga EV, Proton will be  considering the possibility of introducing the technology in to C segment  vehicles and an A segment vehicles in the future. These plans are being  evaluated at the current moment," Proton said. (BT)

Salcon  has secured a RM20.7m contract  from Perbadanan Bekalan Air  Pulau Pinang Sdn. Bhd. to undertake works at Muda River Water Scheme Phase  4A : Package 11-25 MGD Process Unit and associated works, Sg. Dua WTP,  Seberang Perai Utara. (BMSB)

Shares of UOA Development continued to slide, losing 54% since its IPO at  RM2.60 in June, despite bucking a flattish property market sentiment and  achieving strong earnings. This has baffled both analysts and investors. The  company ended on Monday at RM1.19, effectively wiping off RM1.68bn from its  market cap of RM3.1bn at the time of its IPO. (Starbiz)

Octagon Consolidated has awarded a US$22m (RM70.18m) contract to build  its advanced thermal gasification reactor to be used for a waste-to-energy plant  in Sri Lanka. Its wholly-owned subsidiary, Green Energy and Technology has  entered into a contract with KNM Process Systems for the manufacture of its  reactor.  The manufacturing period for the reactor will be for a duration of 22  months from commencement date of the works plus a provisional period of two  months for refractory lining installation. (Malaysian Reserve)

Bursa Malaysia announced that MAA Holdings has triggered the criteria  pursuant to Practice Note No 17 (PN17) of the Main Market listing requirements  of Bursa Securities. (Bernama)

Union heat may delay ‘final leg’ of AirAsia-MAS deal
AirAsia chief executive officer and MAS board member Tan Sri Tony Fernandes told reporters last week that details of the agreement would be finalised in a month. This was, however, before MAS' unionised workers kicked up a fuss again about the national carrier's collaboration plans with AirAsia. According to an online news portal, all eight of MAS' unions have delivered an ultimatum that should MAS not rescind its collaborative agreement with AirAsia within two months, it will be faced with protests next month. (Source: Business Times)

KNM Process bags US$22m contract
OCTAGON Consolidated Bhd said its unit Green Energy and Technology Sdn Bhd (GreenTech) has awarded a US$22 million (RM70.62 million) contract to build a waste to energy plant in Sri Lanka to KNM Process Systems Sdn Bhd. The project involves the generation of renewable energy from municipal solid waste at the project site covering up to 8.1ha of land in Karadiyana, Colombo, Octagon told Bursa Malaysia. (Source: Business Times)

20111004 1013 Global Market Related News.

Asian Stocks Fall a Third Day as Concern Over Europe’s Debt Crisis Deepens (Source: Bloomberg)
Asian stocks fell, driving a regional benchmark gauge toward its lowest close in more than two years, as disagreement among policy makers over how to resolve Europe’s debt crisis dimmed the outlook for exporters and banks. Samsung Electronics Co., which gets a fifth of its sales in Europe, lost 4.8 percent in Seoul. Honda Motor Co., a carmaker that gets more than 80 percent of its revenue abroad, slid 4.3 percent. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s No. 1 listed lender by market value, sank 3.8 percent in Tokyo. BHP Billiton Ltd. (BHP), the world’s biggest mining company, fell 0.7 percent in Sydney after oil and copper prices sank. The MSCI Asia Pacific Index fell 2.2 percent to 107.72 as of 10:05 a.m. in Tokyo, extending its biggest quarterly decline in almost three years. The measure is headed toward the lowest close since July 2009. Stocks also fell after Goldman Sachs Group Inc. cut its forecast for earnings growth in Asia excluding Japan.

Asian Economies Weaken as European Debt Crisis Crushes Investor Confidence (Source: Bloomberg)
Indian and Australian manufacturing data were the weakest since 2009 and Japanese business sentiment failed to recover from the March 11 earthquake, signaling Asian economies are slowing as investor confidence sinks. A purchasing managers’ index for India fell to 50.4 in September from 52.6 in August, HSBC Holdings Plc and Markit Economics said in an e-mailed report today. A gauge for Australia slid to the lowest since June 2009. In Tokyo, the Tankan index of large manufacturers was at 2 in September, compared with 6 before the quake. Asian stocks tumbled ahead of a meeting of European finance ministers to consider measures to counter the sovereign-debt crisis, highlighting limits on the support that the region can give to global growth. An increase in a manufacturing index for China released Oct. 1 suggests that the nation’s economy is so far weathering the global financial turmoil, although a separate HSBC survey indicated smaller companies are suffering.

VIX Record Gain Above 40 Signals Stock Market Rebounds Since 1990: Options (Source: Bloomberg)
The biggest quarterly increase ever in the Chicago Board Options Exchange Volatility Index pushed it above 40, a threshold exceeded only three percent of the time in 20 years and a level that has preceded stock rebounds. The VIX rose 160 percent to 42.96 in the third quarter as the Standard & Poor’s 500 Index fell 14 percent, the biggest retreat since 2008, according to data compiled by Bloomberg. Closes above 40 in the volatility measure have come before the equity gauge gained 3.2 percent in the next three months on average, data compiled by Bloomberg show. U.S. stocks posted unprecedented swings in the last three months on concern Europe’s debt crisis will spur the second global recession in three years. The VIX, derived from prices paid for options to protect equities from losses, averaged 30.6 during the quarter, the highest since 2009, according to data compiled by Bloomberg.

S&P Valuations Below Average Recession Level (Source: Bloomberg)
The rout that erased $2.9 trillion from U.S. equities has pushed valuations in the Standard & Poor’s 500 Index 25 percent below the average level from the last nine recessions, even as profit estimates fall. Companies in the benchmark gauge for American equities trade at 10.2 times 2012 forecast earnings, compared with the average in economic contractions since 1957 of 13.7, according to data compiled by Bloomberg. At the same time, analysts have cut projections for profits next year by 2.6 percent to $110.78 a share, the biggest eight-week drop since 2009, the data show. Bears say analysts have just started paring earnings estimates and that shares will prove expensive when gross domestic product shrinks. Bulls say stock prices have fallen so much that even should earnings fail to increase in 2012, equities are inexpensive.

Recession Risk Overtaking ’New Normal': Gross (Source: Bloomberg)
Bill Gross, the manager of the world’s biggest bond fund, said the global economy risks lapsing into recession with the pace of growth falling below the “new normal” level the firm has predicted since 2009. “Sovereign balance sheets resemble an overweight diabetic on the verge of a heart attack,” Gross wrote in a monthly investment outlook posted on Newport Beach, California-based Pacific Investment Management Co.’s website today. “If global policy makers could focus on structural as opposed to cyclical financial solutions, new normal growth as opposed to recession might be possible. Long-term profits cannot ultimately grow unless they are partnered with near equal benefits for labor.”
Pimco outlined the new normal scenario at its annual Secular Forum in May 2009 that set investment guidelines for the firm for the next three to five years. The forecast predicted that following the market collapse in 2008 the U.S. economy would grow at a below-average pace for the next several years as growth in the developed markets slows, unemployment stays elevated and the “heavy hand of government” would be evident in the markets.

U.S. Manufacturing Unexpectedly Accelerates as Export Demand Spurs Output (Source: Bloomberg)
Manufacturing in the U.S. unexpectedly accelerated in September, propelled by gains in exports and production. The Institute for Supply Management’s factory index climbed to 51.6 last month from 50.6 in August, the Tempe, Arizona-based group said today. A level of 50 is the dividing line between growth and contraction. The median forecast of 82 economists surveyed by Bloomberg News projected a drop to 50.5. Growing emerging economies like China and a rebound in Japan following the March earthquake and tsunami may continue to lift demand from overseas, giving a boost to companies like Emerson Electric Co. (EMR) and Honda Motor Co. Manufacturing, which accounts for about 12 percent of the economy, may prevent the recovery from being cut short even as consumer spending cools.

Record U.S. Gasoline Cargoes Seen Driving 17% Tanker-Rate Advance: Freight (Source: Bloomberg)
Record U.S. exports of gasoline and other refined oil products are poised to eliminate a glut of ships hauling the fuels next year, driving freight rates to a three-year high. Shipments in the first nine months were 24 percent higher than a year earlier, led by cargoes to Latin America, Energy Department data show. Costs to hire medium-range tankers, holding enough gasoline to fill about 800,000 cars, will gain 17 percent to $14,000 a day next year, according to the median of seven analysts surveyed by Bloomberg. U.S. crude-oil output in the first nine months rose 1.7 percent, the highest for the period since 2003. Gasoline demand fell 3.7 percent in July to the lowest for the month in 11 years. At a time when ships hauling crude and coal are forecast to lose money for at least another two years, product tankers may break even as early as 2012. Billionaire Wilbur Ross completed his first shipping investment last month, joining a group of investors buying a fleet of 30 fuel carriers.

Treasuries Fall on Speculation Potential Slowdown Doesn’t Merit Yield Drop (Source: Bloomberg)
Treasuries fell on speculation the potential pace of U.S. economic slowdown doesn’t merit 30-year yields at the lowest level since 2009. “The bond market has been factoring in the worst-case scenario for a long time,” said Roger Bridges, who oversees the equivalent of $14.2 billion of debt as the Sydney-based head of bonds at Tyndall Investment Management Ltd., a unit of Japan’s Nikko Asset Management Co. “You may have a slowdown or you may have a slight recession. The market’s thinking about a depression. I don’t see the economic data suggesting that.” Thirty-year yields rose two basis points to 2.74 percent as of 9:57 a.m. in Tokyo, according to Bloomberg Bond Trader prices. The 3.75 percent security due in August 2041 fell 13/32, or $4.06 per $1,000 face amount, to 120 14/32.

Construction Spending in U.S. Unexpectedly Increases as Multifamily Gains (Source: Bloomberg)
Construction spending in the U.S. unexpectedly rebounded in August, propelled by the biggest jump in state and local government outlays in more than two years. The 1.4 percent gain reversed the revised 1.4 percent drop in July, Commerce Department figures showed today in Washington. The median estimate of 52 economists surveyed by Bloomberg News called for a 0.2 percent decline. The industry was up 1.4 percent from August 2010 before adjusting for seasonal variations, the first positive reading this year. Increased building of multifamily residences, like apartments and townhouses, adds to evidence that Americans are moving away from home buying in favor of renting. Even with the gain in state and local spending in August, public construction was down 5.3 percent from a year earlier, showing the pain caused by budget cuts.

Stocks Fall in U.S., Sending S&P 500 Index Below Lowest Close of the Year (Source: Bloomberg)
U.S. stocks tumbled, sending the Standard & Poor’s 500 Index to a one-year low, as concern over Greece’s debt crisis and Bank of America Corp. (BAC)’s slump outweighed a rebound in manufacturing and construction spending. Financial shares had the biggest drop in the S&P 500 as Bank of America fell 9.6 percent to the lowest level since March 2009. Alcoa Inc. (AA) lost 7 percent amid concern about slower demand for commodities. American Airlines parent AMR Corp. (AMR) slid 33 percent on concern the U.S. is nearing a return to recession and that the carrier may be forced to seek bankruptcy protection. The S&P 500 lost 2.9 percent to 1,099.23 at 4 p.m. New York time, its lowest close since Sept. 8, 2010. The Dow Jones Industrial Average declined 258.08 points, or 2.4 percent, to 10,655.30, also the lowest level in more than a year.

China Services Indexes Show Faster Growth (Source: Bloomberg)
China’s service industries expanded at a faster pace last month, rebounding from a deceleration in August, a pickup that may ease concern the world’s second- largest economy is slowing. A purchasing managers’ index for China’s non-manufacturing industries rose to 59.3 from 57.6 in August, driven by retail spending, the China Federation of Logistics and Purchasing said on its website yesterday. HSBC Holdings Plc and Markit Economics said a services-industry index gained to 53 in September from a series-record low of 50.6 the previous month. Numbers above 50 indicate expansion. “September’s HSBC Services PMI rebounded meaningfully, pointing to a possible bottoming out of the services economy towards the end of the year,” Qu Hongbin, HSBC’S chief economist for China, said in a statement. “Combined with an improvement in the manufacturing PMI, this implies that despite the global slowdown China is still well on track for a soft landing.”

China's inflation fight remains top priority
BEIJING, Sept 30 (Reuters) - China will keep monetary conditions tight in its effort to rein in stubborn inflation, the country's central bank said on Friday, adding that containing domestic price pressures remains its priority.
"We should continue to implement a prudent monetary policy and continue to treat price stabilisation as the top priority," the People's Bank of China said in a statement following its quarterly policy meeting.

Japan’s Nikkei Drops to One-Week as Europe Impasse Undermines Confidence (Source: Bloomberg)
Japanese stocks fell, with the Nikkei 225 (NKY) Stock Average dropping toward its lowest level in a week, as discord among European policy makers fueled concern the region will fail to resolve its debt crisis. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s largest lender by market value, fell 3.5 percent, headed for its steepest drop in over six months. Toyota Motor Corp. (7203), the world’s No. 1 carmaker, declined 2.3 percent, leading exporters lower. Kawasaki Kisen Kaisha Ltd. (9107), Japan’s third-biggest shipping line by sales, tumbled 5.8 percent after saying it expects a loss because of slumping cargo rates.
The Nikkei 225 fell 1.8 percent to 8,389.83 as of 9:23 a.m. in Tokyo, headed for its lowest close since Sept. 26. The measure tumbled 11 percent last quarter, its worst performance since the three months ended June 2010. The Topix lost 1.9 percent to 732.88 today.    “Investor sentiment remains bearish,” said Fumiyuki Nakanishi, a strategist at Tokyo-based SMBC Friend Securities Co. “There are many different views within the 17 nation euro region. Investors are taking what politicians say very negatively, and they are reducing their risk assets.”

South Korea’s Inflation Moderates From Three-Year High (Source: Bloomberg)
South Korea’s inflation slowed in September from the fastest increase in 3 years as food prices moderated, while still remaining above the central bank’s target range. Consumer prices rose 4.3 percent from a year earlier, after a 5.3 percent advance in August, Statistics Korea said today in Gwacheon, south of Seoul. That was lower than the median estimate of 4.5 percent in a Bloomberg News survey of eight economists. Prices rose 0.1 percent from August. Bank of Korea Governor Kim Choong Soo has vowed to resume “normalizing” borrowing costs once the global economic outlook improves and Europe’s debt crisis calms down. His policy board left the benchmark interest rate unchanged for a third straight month in September even as inflation exceeded the bank’s target ceiling of 4 percent every month this year.

Korean Won Sinks to 14-Month Low; Government Bonds Gain as Inflation Cools (Source: Bloomberg)
South Korea’s won sank to the lowest level since July 2010 as concern Europe will fail to contain the region’s debt crisis prompted investors to seek refuge in the dollar. Bonds gained after inflation slowed more than forecast. Greece passed austerity measures yesterday that will cut its 2012 budget deficit to 6.8 percent of gross domestic product, short of the 6.5 percent goal previously agreed to secure financial aid from the European Union, International Monetary Fund and European Central Bank. Euro-region finance chiefs will meet on Oct. 13 to decide whether the push is enough to win bailout funds needed to avoid default. The dollar strengthened against 15 of 16 major currencies today.
“The larger-than-expected Greece deficit is heightening concern that Greece may default on its debt, boosting demand for safer assets,” said Ha Jun Woo, a Seoul-based currency dealer with Daegu Bank. “The Korean government has shown its will to prevent the currency from falling below the 1,200 per dollar level in the past, so it will be a key level to watch today.”

Greece Approves $8.8 Billion in Spending Cuts Before Scrutiny by EU, IMF (Source: Bloomberg)
The Greek government said it passed a new budget backed by its international creditors, including larger deficits than previously forecast, as the country moves closer to securing an 8 billion-euro ($10.7 billion) aid payout needed to avoid default. Prime Minister George Papandreou’s Cabinet also passed 6.6 billion euros of austerity measures last night to cut the 2012 deficit to 6.8 percent of gross domestic product, missing the 6.5 percent goal previously set with the European Union, International Monetary Fund and European Central Bank, known as the troika. Finance Minister Evangelos Venizelos previously said Greece would miss the targets. The new deficit numbers “should not derail Greece’s current negotiations with the troika,” Geoffrey Yu, a currency strategist at UBS AG in London, wrote in a note to clients. “We remain of the view that Greece will ultimately receive its current bailout tranche.”

EU Signals Bigger Losses on Greek Bailout (Source: Bloomberg)
European governments dropped clues that bondholders may have to take bigger losses on Greek debt in a second aid package, as Greece’s deteriorating economic outlook forces bolder steps to quell the fiscal crisis. Finance ministers considered reshaping a July deal that foresaw investors contributing 50 billion euros ($66 billion) to a 159 billion-euro rescue. That “private sector involvement” includes debt exchanges and rollovers. “As far as PSI is concerned, we have to take into account that we have experienced changes since the decision we have taken on July 21,” Luxembourg Prime Minister Jean-Claude Juncker told reporters early today after chairing a meeting of euro finance chiefs in Luxembourg. “These are technical revisions we are discussing.”

Euro Reaches Decade Low Versus Yen Amid Signs of Slowing European Growth (Source: Bloomberg)
The euro touched the lowest level in more than a decade against the yen before reports that may indicate a slowdown in the European economy, spurring concern the region’s debt crisis is damping prospects of recovery. The 17-nation euro’s decline was limited as technical charts suggest the recent drop was excessive. The Australian dollar was near its lowest level in a year before the Reserve Bank of Australia’s meeting today, where policy makers are expected to hold interest rates, and after a global slump in equities curbed demand for higher-yielding assets. “There isn’t much progress in containing the sovereign problem and Europe will possibly slip into recession,” said Kengo Suzuki, manager of the foreign-bond department in Tokyo at Mizuho Securities Co., a unit of Japan’s third-largest listed bank. “That’s negative for the euro.”

German Stocks Decline on Debt, Extending Biggest Quarterly Drop Since 2002 (Source: Bloomberg)
German stocks fell, extending the benchmark DAX Index (DAX)’s biggest quarterly drop in nine years, as concern deepened that Europe’s debt crisis will hurt growth and choke off funding for banks. Commerzbank AG (CBK) slid 7.3 percent and Deutsche Bank AG (DBK) dropped 2.2 percent amid speculation that banks in Belgium and Austria will need more government support. Carmakers Bayerische Motoren Werke AG (BMW) and Daimler AG (DAI) declined as investors speculated that China’s economy is slowing more than expected. The DAX dropped 2.3 percent to 5,376.7 at the 5:30 p.m. close in Frankfurt, having earlier fallen as much as 3.9 percent. The gauge slumped 25 percent last quarter, its largest plunge since 2002, amid concern global growth is stumbling as policy makers struggle to contain Europe’s sovereign-debt crisis. The DAX has decreased 22 percent this year. The broader HDAX Index lost 2.3 percent today.

U.K. Stocks Slide for Fourth Day; Banks, Miners Lead Decline (Source: Bloomberg)
U.K. stocks declined for a fourth day, their longest falling streak in eight weeks, as commodity and bank shares slid due to concern that the global economy is faltering and the Greek debt crisis is deepening. BHP Billiton Ltd. (BHP) and Rio Tinto Group, the world’s biggest mining companies, retreated 1.6 percent and 2.4 percent respectively as copper slid to a 14-month low in London. Standard Chartered Plc (STAN) and Royal Bank of Scotland Group Plc (RBS) fell more than 4 percent as euro-area finance ministers meet to decide whether Greece will receive another aid tranche.
The benchmark FTSE 100 Index (UKX) retreated 52.98 points, or 1 percent, to 5,075.5 at the 4:30 p.m. close in London after earlier declining as much as 2.8 percent. The index rose 1.2 percent last week as policy makers increased their efforts to contain the euro area’s sovereign-debt crisis. The gauge lost 14 percent in the third quarter, its biggest drop since 2002, amid concern that Greece’s debt woes will spread to other countries in the region and that the economy is stalling.

20111004 1013 Global Commodities Related News.

Commodities Drop to 10-Month Low as Slowing Global Growth May Crimp Demand (Source: Bloomberg)
Commodities fell to a 10-month low on increasing concern that stagnant global growth will crimp demand for metals, energy and agriculture. The Standard & Poor’s GSCI Spot Index dropped 5.38, or 0.9 percent, to close at 585.62, after touching 580.22, the lowest since Dec. 1. The gauge tumbled 12 percent in the third quarter, the most since the final quarter of 2008. Global equities slumped on concern that Europe’s debt crisis will worsen and derail expansion. The GSCI Index has lost more than 20 percent since reaching an almost three-year high in April as slowing growth reduced the chances of shortages for raw materials. Money managers cut bets on a commodity rally 26 percent in the week to Sept. 27, the most in almost three years, government data show.

Goldmans Slashes Grain Price Estimates On USDA Stocks Data (Source: CME)
Goldman Sachs downgraded its grain price forecasts, after higher-than-expected U.S. stocks data last week eased fears of a shortfall of corn supplies. Grain analyst Damien Courvalin slashed his estimates for Chicago corn prices over the next three- to six-months to $6.15 a bushel from $7.35/bu and to $5.50/bu from $7.00/bu over the next year, citing data from the U.S. Department of Agriculture showing inventories "well above our and consensus expectations." For wheat, he lowered estimates from $7.50/bu, $7.90/bu and $7.50/bu to $6.40/bu, $6.50/bu and $6.00/bu on the back of both lower-than-expected corn prices and consensus-beating wheat stocks. Grain prices plummeted Friday after the USDA stunned markets by pegging domestic corn inventories at 1.128 billion bushels as of Sept. 1--23% higher than a forecast released a fortnight ago by a different division of the USDA and well above market forecasts of below 1 billion bushels.
Significantly, stocks of wheat, a key corn feed substitute, also came in well above market expectations at 2.15 billion bushels, implying that recent high prices had started to reduce demand more than many had predicted. "We expect these higher 2011-12 corn beginning stocks to more than offset our forecast for lower new-crop corn production and allow for both stronger demand and higher ending stocks than we had previously expected," said Courvalin in a note. Meanwhile the "the recent record-high wheat-to-corn price correlation will likely decline" as higher supplies encourage less substitution, he said. The data was also bearish enough for Courvalin to downgrade Goldman's top bullish call, soybeans. He cut his price forecasts from $13.75/bu, $14.00/bu and $14.00/bu over the next three, six and 12 months to $12.60/bu, $13.00/bu and $13.00/bu respectively.
But he said that he expected soybean prices to outperform corn as "the tightening of the soybean balance relative to the corn balance will likely intensify the competition for U.S. acreage next spring," while the La Nina weather pattern this spring could present further world production risks.

Corn (Source: CME)
US corn futures end flat, finding stability after earlier plunging near a 10-month low. The exhaustion of fund-inspired liquidation and commercial bargain-hunting buying provided support to buoy prices, analysts say. However, global economic worries tied to Greece's unresolved debt issues and harvest-related selling applied pressure to cap advances, analysts add. Market was oversold, after adequately digesting Friday's unexpected government stocks report revealing larger-than-expected inventories. CBOT Dec corn finished unchanged at $5.92 1/2/bushel.

Wheat (Source: CME)
US wheat futures end mixed, with Chicago wheat bouncing in a recovery from last week's sharp declines. Signs of stability in neighboring grain futures attracted buying, but Minneapolis spring wheat futures were unable to sustain any price strength, as traders adjusted prices to catch up with the losses seen in other markets late last week, analysts say. However, spring wheat futures did move significantly off initial lows, pick up the buying that buoyed other grain markets. CBOT Dec wheat end up 10 1/4c at $6.19 1/2/bushel, MGEX Dec wheat finished down 7c at $8.85 1/4, and KCBT Dec wheat end down 2c at $7.02.

Rice (Source: CME)
US rice futures end higher, recovering from last week's setback. The advances were fueled by ongoing concerns about US output and stability in across grain markets. CBOT Nov rice climbed 4c or 0.3% to $15.99 per hundredweight.

China's corn rush to redraw global food landscape  
SINGAPORE, Sept 30 (Reuters) - When China abandoned its soybean self-sufficiency quest almost 20 years ago and started importing the oilseed feeding its hunger for livestock, it almost single-handedly transformed the industry. Today, it's poised to do the same for corn.
The world's most populous nation is expected to triple corn purchases next crop year and, by its own admission, become a significant importer by 2015, putting more strain on global food supplies at a time when inflation is gnawing away at economic growth and the population nears seven billion.

Corn at 9-1/2 month low on inventory surprise, economic gloom
SINGAPORE, Oct 3 (Reuters) - U.S. corn slid 1.5 percent to its lowest since December after suffering its biggest monthly decline in more than 15 years in September as larger-than-expected supplies continued to hammer the market.
"It is something the market had not expected as everyone was talking about tightening supplies, it was a surprise," said Ker Chung Yang, a commodities analyst at Phillip Futures in Singapore.

US corn export dominance to bend, not break
CHICAGO, Sept 30 (Reuters) - For the first time in 40 years, U.S. corn exporters are not out-selling the rest of the world. Domestic ethanol is sucking up record crops.
Emerging suppliers like Brazil and Ukraine are taking export share, while traditional exporters like Argentina move to open new markets.

Russia may export 25 mln T grain in 2011-2012-lobby
MOSCOW, Oct 3 (Reuters) - Russia may export 25 million tonnes of grain in 2011-2012 and the country's grain crop may reach 93 million tonnes, Arkady Zlochevsky, the president of the Russian grain Union, the industry lobby, said on Monday.
"We will have an exportable surplus of 30 million tonnes but we'll manage to export around 25 million tonnes," Zlochevsky told journalists.

Philippines says typhoons damage nearly 450,000 T rice
MANILA, Oct 3 (Reuters) - Two powerful typhoons that hit northern Philippines in less than a week may have damaged more than 448,000 tonnes of paddy rice, prompting agriculture officials to hold an emergency meeting on Monday to discuss the country's rice supply situation.
The damaged crop was estimated to be equivalent to about 291,505 tonnes milled rice, and accounted for 6.9 percent of forecast national output of 6.5 million tonnes in the last quarter of 2011.

Argentine wheat still in need of rains - gov't  
BUENOS AIRES, Sept 30 (Reuters) - Argentine wheat plants are badly in need of heavier rains despite scattered showers that helped speed corn plantings in some areas this week, the Agriculture Ministry said on Friday.
Argentina, a leading global wheat exporter and key supplier to neighboring Brazil, forecasts lower 2011/12 output of between 11 million and 13 million tonnes compared with 14.7 million last season due to recent dry weather.

Ukraine 2012 winter grain sowing 57 pct completes
KIEV, Sept 30 (Reuters) - Ukrainian farms have sown 4.7 million hectares of winter grains for the 2012 harvest or 57 percent of the expected area, the Agriculture Ministry said on Friday.
The ministry said in a statement the ex-Soviet republic sowed 5.04 million hectares of winter grains at the same date in 2010.

Ukraine trader HIB exports 450,000 T grain so far
KIEV, Sept 30 (Reuters) - Ukraine's major grain exporter HlibinvestBud (HIB) exported about 450,000 tonnes of wheat and barley in the first three months of the 2011/12 season, it said on Friday.
HIB, which plans to export 5 million tonnes of grain this season ,also said it had bought 3.0 million tonnes of grain from local producers for future exports.

Italy 2011 maize output seen up to 10.5-11.0 mln T
MILAN, Sept 30 (Reuters) - Output of maize in Italy, a major producer in Europe, is expected to rise to 10.5-11.0 million tonnes this year from 8.6 million tonnes in 2010 due to increased planted areas and strong yields per hectare, according to estimates by major Italian farmers' associations provided by their biggest group, Coldiretti, on Friday.
"As far as areas is concerned, we can confirm the earlier estimate of more than 1 million hectares. As far as production is concerned, the estimate is between 10.5 million tonnes and 11.0 million tonnes. Yields are very good this year and we have a big increase in production," Coldiretti's grain specialist Paolo Abballe told Reuters.

Thailand's Rice Policy Already Causing Ripple Effects (Source: CME)
It's not yet in effect, and yet Thailand's controversial new rice policy is already having some unintended consequences. Farmers are reported to be hoarding crops, while some buyers overseas are shifting to consuming more noodles instead of rice, a phenomenon that could have long-term effects on the global rice market if it continues. In the run-up to national elections earlier this year, Thailand's Puea Thai party promised the government would buy un-milled, or paddy, rice from growers at THB15,000/ton, or about 50% above the market prices then. Now in power, Puea Thai is gearing up to honor its election promise by Oct. 7. The government is likely to do this by arranging for rice to be bought by millers, instead of via direct state purchases. Sensing opportunity, growers and millers are hoarding rice to be delivered to the government program likely at a substantial profit once the program begins.
Moreover, with millers likely deputed to buy paddy from growers and store the grain on the government's behalf, a window has opened to pass off some of the old crop as this year's new crop at sharply higher prices, pocketing the government subsidy, Chookiat Ophaswongse, former president of Thai Rice Exporters Association told Southeast Asia Real Time. Industry calculations show higher procurement prices would mean the export price of 5% broken Thai rice should be around $830/ton. Growers and millers have seen prices of 5% broken rice move from $500/ton to above $600/ton since early July, so it makes sense to hoard. Ironically, the Thai policy will also push up the country's rice inventories despite a bumper crop. Last week, the London-based International Grains Council revised lower its forecast of Thailand's rice exports in 2012 by 9% to 8.0 million tons, as high government procurement prices slow shipments.
The world's largest rice exporter's shipments will likely be 20% lower compared with 2011, the IGC said. The impact has been felt beyond national borders. Export prices in neighboring Vietnam have also risen by $80-$100/ton. Exporters have washed out trades or renegotiated earlier contracts at higher prices. Indonesia, the world's largest rice importer this year, is grappling with high inflation and consumers are changing dietary habits to keep a check on the monthly food bill. In one of those changes, the country is undergoing a shift in consumption towards noodles from rice, and the trend may accelerate as prices of rice rise, a senior research analyst with Standard Chartered Bank, Nirgunan Tiruchelvam told Southeast Asia Real Time. Noodles are made from wheat, which can be imported at less than $350/ton compared with rice prices above $550/ton.
Those ripple effects are examples of how government policies sometimes unwittingly increase rather than control food prices. Rice is the world's most widely-consumed staple food. Almost half of the world's rice exports are accounted for by Thailand and Vietnam, which have had a string of bumper crops, but to no avail as far cooling prices is concerned. Indeed, the world is heading for the second successive year of record rice production. International Grains Council forecasts show 2011-12 production at 461 million metric tons, up 2.2% on year. Carry-over stocks in five major exporters - Thailand, Vietnam, Pakistan, India and the U.S. - are projected to hit a record 33.2 million tons. Yet, prices are still rising. In the past year when prices of wheat, corn and oilseeds rose to multi-year highs, rice was an exception. Not anymore. Export prices in Thailand and Vietnam, have risen by up to 25% since the start of July.
All this is happening when India, with government stocks of 22.7 million tons รข€“ nearly as much as the annual global trade of 32 million tons - is expecting another bumper harvest this month onwards. Indian supply can be a cooling factor in rice prices, but the government there has allowed exports of only two million tons from the open market, for now. With governments refusing to let markets function freely, it may take more than a good crop to make rice cheaper. It may become a classic case of rice, rice everywhere, not a grain to eat.

Kazakhstan Harvests 22.7M Tons Grain To Oct. 3 (Source: CME)
Kazakhstan harvested 22.7 million metric tons of grain to Oct. 3 on 14 million hectares, or 86.8% of the total area to be harvested, with the average yield of 1.62 tons a hectare, the agriculture ministry reported. On the same date last year, the harvest was reported at 13.325 million tons on 15.243 million hectares with the average yield of 0.87 tons a hectare. The ministry said Sept. 22 Kazakhstan was likely to harvest this year 25 million metric tons of grain. In 2010 because of drought Kazakhstan's grain harvest was 12.2 million tons. The country exported in the 2010-2011 marketing year 5.9 million tons of grain.

ICE coffee hits 8-month low as commodities slide
LONDON, Oct 3 (Reuters) - ICE coffee, cocoa and sugar futures all slid in early trade, weighed by broad-based selling in crude oil and other commodity markets linked to a stronger dollar and global economic woes.
Arabica coffee futures fell to the lowest level in more than eight months, joining the retreat in commodity markets.

Indonesia's Sept Sumatra coffee exports fall 70.6 pct y/y
BANDAR LAMPUNG, Indonesia, Oct 3 (Reuters) - Indonesia's robusta coffee bean exports from the main growing area in southern Sumatra fell 70.6 percent in September to 10,435.05 tonnes from the same month a year earlier, government trade data showed on Monday.
Indonesia is the world's fourth-largest coffee producer after Brazil, Colombia and Vietnam, and the world's number two robusta coffee producer after Vietnam.

India Oct-Sept'11 coffee exports jump 33 pct-board
Oct 3 (Reuters) - Coffee exports from India jumped 33 percent to 358,278 tonnes in the coffee year to September, helped by shipments to Italy and Germany, the board said in a statement on Monday.
India, the world's fifth biggest producer, accounts for only 4.5 percent of the world's coffee output, but exports 70 to 80 percent of this. Italy, Russia and Germany are the top three buyers of Indian coffee.

Indonesia Sulawesi Sept cocoa exports plunge 60.8 pct y/y
JAKARTA, Oct 3 (Reuters) - Indonesia's cocoa bean exports from the main growing island of Sulawesi dropped 60.8 percent to 7,388.28 tonnes in September from 18,849 tonnes a year earlier, industry data showed on Monday.
Indonesia, the world's third-largest cocoa producer after Ivory Coast and Ghana, accounts for around 10 percent of the world's output.

Indonesia's cup of cocoa woes could cheer world market
SINGAPORE/JAKARTA, Sept 30 (Reuters) - A plunge in Indonesia's cocoa exports spotlights a flagging battle against disease and adverse weather, but the country's supply disruptions could allay fears of another global surplus and stem a seven-month slide in prices.
Although the outlook for world grindings may be clouded by the threat of recession, shrinking output in third-largest cocoa producer Indonesia will help balance the market in the next crop year after supply exceeded demand by 450,000 tonnes this year.

Egypt's Alcotexa sells 965 T cotton in past week
CAIRO, Oct 2 (Reuters) - Egypt's Alexandria Cotton Exporters' Association (Alcotexa) committed to sell 965 tonnes of cotton in the week which ended on Oct. 1, an Alcotexa official told Reuters on Sunday.
The sales comprised 540 tonnes of Giza 88 and 425 tonnes of Giza 86.

Brazil's northeast starts crushing bigger cane crop
SAO PAULO, Sept 30 (Reuters) - Brazil's northeast has begun crushing its 2011/12 cane crop, which is expected to be one of the largest ever, the head of the region's sugar cane industry association, Sindacucar, said on Friday.
The region, which usually accounts for 10 percent of the Brazilian cane output, is expected to harvest 66 million tonnes of cane, up from 63 million tonnes last season.

World coffee body's chief targets emerging consumers
LONDON, Sept 30 (Reuters) - The new head of the International Coffee Organization (ICO) wants to bring new impetus to promoting the drink in Asia and other emerging markets, notably those that produce coffee themselves, he said on Friday.
"We have (producing) countries that are showing growth in coffee consumption, like Indonesia, Mexico and India, and I want to see this growing more and more," Roberio Oliveira Silva told Reuters in an interview less than 24 hours after being appointed ICO executive director by the International Coffee Council.

ICO sees tight global coffee market in 2011/12
LONDON, Sept 30 (Reuters) - Global coffee consumption should outstrip production in 2011/12, leading to a "tight situation" with supplies, outgoing International Coffee Organization acting Executive Director Jose Sette said on Friday.
He said global coffee production in 2011/12 was seen around 129.5 million bags (60-kg) and consumption about 134 million bags.

Ivorian cocoa farmers upbeat on 2011/12 crop
SOUBRE, Ivory Coast, Sept 30 (Reuters) - Farmers in the heart of Ivory Coast's cocoa belt say they expect an abundant harvest in the new season, though production will not match the record 1.5 million tonnes of the season just ending.
Farmers in Soubre and Daloa regions, which account for about half of the country's production, said the current state of their crops has led them to expect total output of 1.3 million tonnes, close to a finance ministry forecast obtained earlier this week by Reuters.

U.S. coal consumption up 3 pct last week - Genscape
HOUSTON, Sept 30 (Reuters) - U.S. coal consumption rose 3 percent last week versus the week before but stayed unchanged from a year earlier, data from power industry data monitor Genscape showed.
Warmer weather spread last week in the populous East, WSI Corp weather service said. A slight uptick in nuclear plant outages boosted coal use despite cheapening natural gas.

Euro Coal-Prices stable, market eyes Korea
LONDON, Sept 30 (Reuters) - Prompt physical coal prices were again little changed on Friday, having moved minimally on a daily basis this week due to a lack of demand in Europe and Asia for spot coal.Few trades were reported.
"Prices have barely moved and there haven't been many bids or offers, it's been thin," one European trader said.

Record U.S. Gasoline Cargoes Seen Driving 17% Tanker-Rate Advance: Freight (Source: Bloomberg)
Record U.S. exports of gasoline and other refined oil products are poised to eliminate a glut of ships hauling the fuels next year, driving freight rates to a three-year high. Shipments in the first nine months were 24 percent higher than a year earlier, led by cargoes to Latin America, Energy Department data show. Costs to hire medium-range tankers, holding enough gasoline to fill about 800,000 cars, will gain 17 percent to $14,000 a day next year, according to the median of seven analysts surveyed by Bloomberg. U.S. crude-oil output in the first nine months rose 1.7 percent, the highest for the period since 2003. Gasoline demand fell 3.7 percent in July to the lowest for the month in 11 years. At a time when ships hauling crude and coal are forecast to lose money for at least another two years, product tankers may break even as early as 2012. Billionaire Wilbur Ross completed his first shipping investment last month, joining a group of investors buying a fleet of 30 fuel carriers.

Iraq sees oil output at 3 mln bpd by year-end
BAGHDAD, Oct 3 (Reuters) - Iraq's oil production will reach 3 million barrels per day (bpd) by the end of this year from its current output of 2.9 million bpd, the Iraqi oil ministry said on Monday.
The ministry said crude exports from the OPEC member are expected to reach 2.5 million bpd at the start of next year.

Brent tumbles more than $1 on euro debt fears
SINGAPORE, Oct 3 (Reuters) - Brent crude fell more than $1 to below $102 as growing fears of the euro debt crisis spreading to other parts of the region and dampening global oil demand weighed heavily on investors.
"We need to keep a close on demand... (but) I am not predicting a major demand slump," he told the Middle East Petroleum and Gas conference in Dubai, delivering a speech for UAE Oil Minister Mohammed bin Dhaen al-Hamli.  

China output drives stainless steel to record -ISSF
LONDON, Sept 30 (Reuters) - Global stainless steel production hit a new all-time high in the first half of 2011 as output growth in China offset a slowdown in most other regions, data showed on Friday.
Stainless steel production hit a record 16.4 million tonnes in the first half of 2011, up 3.8 percent from the same period last year, according to data from the International Stainless Steel Forum (ISSF).

Analysts see downward pressure on iron ore, freight
LONDON, Sept 30 (Reuters) - Traders and analysts warn of downside risks for both iron ore and freight prices in the short-term, even though the cost of shipping iron ore to China unexpectedly spiked this month and iron ore miners are boasting of full order books.
Average earnings for capesizes, which typically haul 150,000 tonne cargoes such as iron ore and coal, have risen to their highest level in nine months this month and miner BHP Billiton   paid $12.45 a tonne to ship iron ore from Australia to China, the highest rate since November last year.

Oil Declines for Third Day on European Debt Crisis, Rising Crude Supplies (Source: Bloomberg)
Oil dropped a third day in New York as investors speculated that Europe’s debt crisis will slow the economy and curb fuel demand as crude supplies climb. Futures slipped as much as 2.2 percent today after falling to the lowest settlement in more than a year yesterday. European governments signaled investors may have to take bigger losses on Greek debt in a second aid package for the nation. U.S. crude inventories climbed for a second week, an Energy Department report tomorrow may show. Libya aims to raise production to more than 500,000 barrels a day by the end of this month. “We are seeing continuing pressure across the commodities complex from these concerns about the global growth prospect,” said Michael McCarthy, a chief market strategist at CMC Markets Asia Pacific Pty Ltd. in Sydney. “The markets are universally bearish and we’re looking for reasons to sell and the oil markets are being affected by that.”

Iron Ore-Spot prices seen near 3-month lows, China off
SINGAPORE, Oct 3 (Reuters) - Spot iron ore prices are expected to steady near three-month lows this week with top importer China off for a week-long holiday after ending the third quarter nearly flat as Chinese demand slowed last month.
Slower steel demand in China, the world's biggest consumer and producer, drove Shanghai rebar futures  down more than 11 percent in September, their biggest monthly loss ever.

Analysts see downward pressure on iron ore, freight
LONDON, Sept 30 (Reuters) - Traders and analysts warn of downside risks for both iron ore and freight prices in the short-term, even though the cost of shipping iron ore to China unexpectedly spiked this month and iron ore miners are boasting of full order books.
Average earnings for capesizes, which typically haul 150,000 tonne cargoes such as iron ore and coal, have risen to their highest level in nine months this month and miner BHP Billiton   paid $12.45 a tonne to ship iron ore from Australia to China, the highest rate since November last year.

China output drives stainless steel to record -ISSF
LONDON, Sept 30 (Reuters) - Global stainless steel production hit a new all-time high in the first half of 2011 as output growth in China offset a slowdown in most other regions, data showed on Friday.
Stainless steel production hit a record 16.4 million tonnes in the first half of 2011, up 3.8 percent from the same period last year, according to data from the International Stainless Steel Forum (ISSF).

China 2012 base metals demand seen up, hinges on credit
HONG KONG, Sept 30 (Reuters) - China's base metals consumption growth rate could slow further next year as exports fall, even if Beijing starts to loosen monetary policy after the first quarter.
A possible debt crisis in developed countries and Beijing's credit tightening are the two major factors that could slow demand in the world's top consumer and producer of most base metals.

METALS-Copper falls for a fourth day; Shanghai shut
SINGAPORE, Oct 3 (Reuters) - Copper fell for a fourth session in a row on Monday, extending losses after suffering its worst quarter in nearly three years, as a firmer dollar and risks of an economic slowdown kept buyers at bay.
Three-month copper on the London Metal Exchange  dropped 2.6 percent to $6,835 a tonne by 0403 GMT, after shedding 26 percent in the September quarter, its worst showing since the final three months of 2008.

PRECIOUS-Gold extends gains, equities drop on Europe debt fears
SINGAPORE, Oct 3 (Reuters) - Gold strengthened further on Monday as falling equities and lingering worries about a debt crisis in Europe drew investors to the precious metal, which posted its the biggest quarterly gain this year, but a firm U.S. dollar could still cap gains.
Stocks slipped in Asia and the euro fell on anxiety the euro zone's debt crisis will dampen global growth after the Greek government said it will miss a deficit target set just months ago in a massive bailout package.

Baltic index drops, China books more coal cargoes
LONDON, Sept 30 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell again for the fourth day on Friday as lighter bookings continued to trim gains made on the capesize market.
The main index fell by 14 points or 0.73 percent to 1,899 points.

20111004 1010 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean and product futures end slightly lower, with beans managing to bounce back from an early slide to nearly 1-year lows. Fund liquidation pressured prices initially, but once exhausted, bargain-hunting surfaced. Futures pushed higher through midday, but ongoing concerns about global economic risks and seasonal harvest pressure capped advances, triggering late-session profit taking. CBOT November soy ended down 1 1/2c at $11.77 1/2 a bushel.

Soybean Meal/Oil (Source: CME)
December soymeal fell $1.60 to $307/short ton and December soyoil dropped 0.21c to 50c/pound.

Palm oil hits new one-year lows on economic woes
KUALA LUMPUR, Oct 3 (Reuters) - Malaysian palm oil futures tumbled to fresh one-year lows on concerns that the euro zone's deepening debt crisis will stall global growth and commodity demand.
"The market has really gone down more than it should have purely because of the weak economic outlooks," said a trader with a foreign commodities brokerage in Kuala Lumpur.

Wave of rains heads for Brazil main soy belt -Somar
SAO PAULO, Sept 30 (Reuters) - Planting of Brazil's new soybean crop will spread quickly across the No.1 growing state of Mato Grosso, now that forecasters have projected several days of widespread rains over the main center-west grain belt.
The series of cold fronts that will wash over the region should mark the end of the traditional dry season and unleash widespread planting of Brazil's new soy and corn crops that will be harvested in the first half of 2012.

India may make refined palm oil import costlier -sources
NEW DELHI, Sept 30 (Reuters) - India, the world's top buyer of vegetable oils, is likely to make imports of refined palm oil costlier by raising their base price, government and trade sources said, responding to tax changes by Indonesia that have put at risk the survival of Indian refiners.
But the government is unlikely to make any changes in the import duty of 7.7 percent levied on refined palm oil for fear of stoking already high inflation, especially during the festive season, when demand for edible oils is higher.

Indonesia, India may explore palm oil, rice pact
JAKARTA, Sept 30 (Reuters) - Indonesia and India discuss trade next week with rice and edible oils likely to be on the agenda as Jakarta faces cuts in supplies of the grain from Thailand and New Delhi considers retaliation for a hike in crude palm oil prices.
India, the world's biggest buyer of vegetable oils, is sending Trade Minister Anand Sharma to visit Jakarta, capital of the world's biggest palm oil producer, on Tuesday, barely a month after Indonesia moved to boost its refined palm oil exports by reducing taxes on the product, and hiking tariffs on crude palm oil.

Crude palm oil (CPO) futures fell to its lowest in almost a year with the  benchmark CPO for three-month delivery falling RM60 to RM2,845 a tonne.  While the drop in CPO was anticipated due to losses in soybean prices on the  Chicago Board of Trade, dealers said basically, speculators had reduced their  positions, driven by a weak trend in overseas markets.
  • Another palm oil trader said the sharp sell-down did not quire make  sense and it was not justifiable in spite of the softening in soybean  trading. However, he said there could be a further decline in palm oil  prices on weaker demand for soybean amid increased soybean supplies.  (Starbiz)