Wednesday, October 5, 2011

20111005 1824 FCPO EOD Daily Chart Study.

FCPO closed : 2785, changed : -25 points, volume : lower.
Bollinger band reading : downside biased with possible pullback correction.
MACD Histrogram : falling, seller in control.
Support : 2770, 2750, 2720, 2700 level.
Resistance : 2800, 2850, 2900, 2920 level.
Comment :
FCPO closed recorded loss for the 3rd day with lower volume transacted while overnight soy oil ended severely lower and currently rebounding higher salvaging partial of yesterday losses while crude oil rising higher.
New harvest soybean and slowing down global demand outlook lead soy oil and to trade lower dragged crude plam oil futures price to 1 year low.
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.

20111005 1755 FKLI EOD Daily Chart Study.

FKLI closed : 1374.5, changed : +5.5 points, volume : lower.
Bollinger band reading : pullback correction downside biased.
MACD Histrogram : rising, seller reducing exposure.
Support : 1360, 1350, 1345, 1337 level.
Resistance : 1375, 1385, 1395, 1400 level.
Comment :
FKLI closed recorded gain with lesser volume changed hand doing 1 point discount compare to cash market that ended higher. Overnight U.S. market closed rebounded higher and today's Asia markets traded mixed while European markets currently trading higher.
Asia market traded mixed after news on Italy credit rating downgrade by Moody's Investor and speculation on Europe policy makers are examining measures to shield banks from the sovereign-debt crisis.
Daily chart formed an up doji bar candle positioned nearer to middle Bollinger band level after market trading between losses and gains to closed near opening price.
Technical study still suggesting a pullback correction downside biased market development testing support and resistance level with MACD indicator confirmed having 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.

20111005 1722 Regional Markets EOD Daily Chart Study.

 DJIA chart reading : pullback correction downside biased.
KLCI chart reading : pullback correction downside biased.

20111005 1718 Global Market & Commodities Related News.

Asia stocks trim gains, test policymakers' resolve
TOKYO, Oct 5 (Reuters) - Asian stocks trimmed earlier gains as investors remained sceptical about whether European leaders are going far enough in their efforts to stop the region's sovereign debt woes from sparking a full-blown banking crisis.  "The market in Asia is testing Bernanke's resolve to be able to provide stimulus," said Jonathan Barratt, managing director of Commodity Broking Services.

Europe Stocks Climb Amid Bank Aid Speculation (Blooomberg)
European stocks advanced for the first time in four days amid speculation policy makers are examining measures to shield banks from the sovereign-debt crisis. Asian shares and U.S. index futures dropped. Dexia SA (DEXB) gained 3.2 percent after France and Belgium said a “bad bank” will be set up to hold its troubled assets. Rio Tinto Group led mining companies higher as copper snapped a five-day losing streak. European Aeronautic, Defence & Space Co. rose 1 percent after saying 2011 will be a “very good” year. The Stoxx Europe 600 Index advanced 0.9 percent to 219.48 at 9 a.m. in London after declining 5 percent in the previous three days. The drop had left the measure trading at 9.1 times estimated earnings, near the cheapest since March 2009, data compiled by Bloomberg show.

Corn, wheat rise on economic hopes, Chinese demand
SINGAPORE, Oct 5 (Reuters) - U.S. corn rose more than 1 percent, while soybeans recovered from a near one-year low as the markets took a breather on hopes that European leaders were stepping up efforts to contain the region's debt woes.  "Once the financial markets settle, the commodity markets will also settle, but I think over the next few months it's going to be very volatile," said Abah Ofon, an analyst with Standard Chartered Bank in Singapore.

Vietnam cuts 2011 coffee export forecast to 1.12 mln tonnes
HANOI, Oct 5 (Reuters) - Vietnam, the world's top robusta producer, has cut its annual coffee export projection for calendar year 2011 to 1.12 million tonnes, or 18.7 million bags, from 1.17 million tonnes, the agriculture ministry said.
August's export volume of 36,000 tonnes was below previous forecasts, leading to the downward adjustment for the whole of 2011, the ministry said in a report seen on Wednesday.

Manila sees no need to buy rice despite typhoon damage-official
MANILA, Oct 5 (Reuters) - Two strong typhoons that hit the Philippines in a week damaged about 760,000 tonnes of unmilled rice yet to be harvested, but there is no immediate need for imports because of ample buffer stocks, a senior government official said on Wednesday.
The damage, mostly from the central Luzon region, is equal to 14 days of national consumption and more than 11 percent of the expected rice harvest in the fourth quarter, Agriculture Undersecretary Antonio Fleta said.

Egypt's wheat stocks enough for four months-cabinet
CAIRO, Oct 4 (Reuters) - Egypt, the world's biggest wheat importer, has 2.8 million tonnes of wheat in storage that would last for four months, cabinet spokesman Mohamed Hagazy told reporters on Tuesday after a ministerial meeting at the cabinet's headquarters.
Hagazy further said that the state will import 1.9 million tonnes of wheat until December 2011, the amount which will keep the state's covered until March 2012.

China corn imports may far exceed USDA forecast
CHICAGO, Oct 4 (Reuters) - China may need to import five times as much corn as the U.S. government expects over the next year, an industry group said on Tuesday, setting the stage for another potentially explosive year for prices.
The U.S. Grains Council, which just completed a crop tour in China, said the record harvest won't be enough to meet demand in the world's most populous nation, where expanding consumption of meat is undermining decades of self-sufficiency and helped fuel the record surge in prices earlier this year.

ADM to expand Brazil soybean crushing plant
SAO PAULO, Oct 4 (Reuters) - U.S.-based multinational Archer Daniels Midland Co  is expanding soybean crushing capacity by 50 percent at its plant in Santa Catarina state in southern Brazil, an ADM director said.
The expansion is part of ADM's plans to operate a biodiesel plant adjacent to its existing crusher in the state. The biodiesel unit is expected to begin operation in 2012.

Honduras ends 2010/11 with jump in coffee exports
TEGUCIGALPA, Oct 4 (Reuters) - Honduras ended its 2010/11 coffee harvesting season with 22.3 percent more exports than during last year's cycle as the government backs an aggressive expansion of coffee growing areas, the national coffee institute Ihcafe said Tuesday.
September coffee exports jumped 74 percent from the same month in 2010 reaching 39,868 60-kg bags, Ihcafe said.

West Africa set for another big cocoa season
DAKAR, Oct 4 (Reuters) - West African plantations will churn out huge amounts of cocoa during the early months of this season thanks to near-ideal growing weather, and the full harvest is likely to rival last year's record volumes.
The region produced a record of nearly 3.2 million tonnes of cocoa during the 2011-12 season that just ended, raising its share of the global market to about 75 percent from two-thirds.

Louis Dreyfus buys Brazil cotton seed processor
SAO PAULO, Oct 4 (Reuters) - French commodities trader Louis Dreyfus said on Tuesday it bought a cotton seed processor from Brazilian agribusiness group Maeda Agroindustrial, more than doubling its capacity in the South American country.
Maeda Agroindustrial S.A. is controlled by Brasil   Ecodiesel.

Late-week rain seen for dry US Plains wheat belt
CHICAGO, Oct 4 (Reuters) - Drought-hit areas of the southern U.S. Plains are expected to get much-needed moisture late this week that should help some of the new winter wheat crop to germinate, a forecaster said Tuesday.
Showers and thunderstorms on Friday and Saturday were expected to produce 0.25 to 1.5 inches (0.6 to 3.8 cm) of rain from central and west Texas up into Oklahoma and Kansas, said Telvent DTN forecaster Mike Palmerino.

Russia harvests 89.5 mln T grain by Oct 4 - AgMin
MOSCOW, Oct 4 (Reuters) - Russia harvested 89.5 million tonnes of grain by bunker weight by Oct. 4 from 38.9 million hectares, or 88 percent of the sown area, the Agriculture Ministry said on Tuesday.
The ministry did not provide a comparison to a year-ago volume, but last year, when the country was hit by a severe drought, it said farmers harvested 60.96 million tonnes of grain from 37.96 million hectares by Oct. 5, 2010.

Brent oil rebounds above $102 on stocks data, Fed
SINGAPORE, Oct 5 (Reuters) - Brent crude rebounded above $102 as tighter U.S. crude stocks and promises by the Federal Reserve to launch new stimulus measures if necessary helped halt a sharp three-day sell off.  "The market will be looking to official inventory data for some direction, but macroeconomic worries regarding Europe will continue to drive sentiment this week," ANZ bank said in a research note.

S.Korea's PPS sees lower metals prices in 2012
LONDON, Oct 4 (Reuters) - South Korea's state-run Public Procurement Service (PPS) plans to hold more buy tenders for base metals in 2012 than this year as it expects base metals prices on average to be 20 to 30 percent lower, it said on Tuesday.
It sees South Korea's copper buying demand at around 1 million tonnes next year, up from 900,000 tonnes this year, Im Byeong Cheol, PPS director of commodity stockpile division, said.

Copper snaps 5-day losing streak, but caution stays
SINGAPORE, Oct 5 (Reuters) - Copper rose more than 1 percent after comments by the U.S. Federal Reserve that it was ready to take more steps to help a struggling U.S. economy helped prices recover from a five-day slide.  "The sentiment is very sour right now," said Nirrav Sharma at Singapore-based trading house G-Steelmet.

Codelco sees stable premiums for copper consumers
LONDON, Oct 4 (Reuters) - The world's largest copper miner, Chile's Codelco expects next year's premiums for copper consumers in Asia and Europe to hold steady, Diego Hernandez, the company's chief executive told Reuters on Tuesday.
Financial market turmoil, economic slowdown and fears of recession in Europe has fuelled market talk of lower copper premiums -- the amount copper consumers pay above cash prices  on the London Metal Exchange.

Aluminium demand slowdown not dramatic-Rio Tinto Alcan
LONDON, Oct 4 (Reuters) - Demand for aluminium is slowing but not dramatically, with Asia holding up well, North America flat and Europe faring worst, a Rio Tinto Alcan   executive said on Tuesday.
"The wheels are not falling off yet in terms of demand. We are certainly seeing a slowdown, but it is somewhat regional," Gordon Hamilton, vice president, metal management sales and marketing, said at a London Metal Exchange Week event.

Celsa looks to cut steel output on slower demand
LONDON, Oct 4 (Reuters) - Spanish steelmaker Celsa is considering closing some steel plants in the next few months to respond to lower steel apparent consumtion, it said on Tuesday.
"Celsa Group is taking measures at some steel plants in Europe to adapt to lower apparent steel consumption in the fourth quarter 2011 and first quarter 2012," a spokesperson for the company told Reuters on Tuesday.

U.S. gold gains 1 pct on euro; equities weigh
SINGAPORE, Oct 5 (Reuters) - U.S. gold futures gained 1 percent to above $1,630 an ounce, driven by a return to bargain hunting after prices dropped the previous day, while a rebound in the euro against the U.S. dollar also spurred buying.   "It can't make up its mind mainly because investors, the people who are actually doing the buying and selling, haven't also made up their minds whether gold is treated as a safe haven and, therefore, should follow that status," said Song Seng Wun, a regional economist at CIMB Research in Singapore.

20111005 1147 Malaysia Corporate Related News.

SP Setia will need to get the nod from shareholders for its recently proposed  Semenyih land purchase in line with the current takeover and merger ruling,  said a spokesman for the  Minority Shareholder Watchdog Group (MSWG). MSWG said that normally SP Setia would not need to seek  shareholders' approval, but it is different when the transaction coincides with a  conditional takeover offer. (Financial Daily)

 SP Setia founder and boss Tan Sri Liew Kee Sin has met with the company's  contractors, suppliers and employees over the last two days to address some of  the concerns that have surfaced following PNB's takeover bid. Sources said among the top concerns of SP Setia employees is their  entitlement to Esos shares. In response, Liew said it is up to them  whether to sell their shares. During an emotional meeting with the staff yesterday, Liew was asked  whether he would exit the company. "Liew told his staff that it is not  their battle to fight but it is his, as the battle is at the shareholders' and  the senior management level. Liew said business must go on," said a  source. (Financial Daily)

E&O stated that  ECM Libra acquired an additional 2m shares at RM1 each,  increasing its stake to 6.51% from 6.3%. A week before that, it has just adjusted  its stake from 5.12% to 6.3%. The impetus for this move is unclear and many are  puzzled about it. (Star Biz)

The joint offerors for the assets of PLUS Expressways, namely the EPF and  UEM Group, are considering paying an additional amount due to the longer  time it is taking for the deal to be finalised. EPF and UEM have agreed to pay  something but its just a matter of the quantum that isn‟t clear at this point. (Star  Biz)

In response to Bursa queries, Dayang Enterprise and Perdana Petroleum clarified that while both companies have had discussions on potential  collaboration, no agreement has been reached beyond the normal cause of  vessel chartering activities.  Over the weekend, The Edge wrote that Dayang  may buy into Perdana. (BMSB)

Putrajaya insisted today it had „no choice‟ but to implement the controversial  share swap with AirAsia to avoid having bail out Malaysia Airlines (MAS).  If it continues to make losses and the government has to inject funds, there will  be even more anger, according to Deputy Finance Minister  Datuk Awang  Adek Hussin. Awang was forced to repeatedly assure Parliament today that the deal is  based on the guiding principal that no one loses out and it will benefit  all parties. Awang also said that Khazanah was currently undertaking  due diligence before deciding whether to take a stake in AirAsia X.  (Malaysian Insider)

The Najib administration has dropped a mainland Chinese developer‟s US$1bn  (RM3.2bn) redevelopment plan for  Pudu Jail in favour of splitting the  eight-hectare prime land into parcels to be developed by mainly Bumiputera  companies, sources say. The Malaysian Insider  understands that Pudu Jail land owner,  UDA  Holdings Bhd, has been instructed by its shareholder, the Ministry of  Finance (MOF), to set up a special purpose vehicle (SPV) to oversee the  redevelopment and carve up the land with two parcels to be given to  Bumiputera companies and one to a non-Bumiputera firm. “UDA Holdings received a letter from the MOF in July rejecting the  Chinese bid despite a majority board decision to recommend their  plan,” a source told  The Malaysian Insider, referring to China‟s  Everbright International Construction Ltd‟s bid. UDA Holdings chairman Datuk Nur Jazlan Mohamed confirmed the  MOF directive but declined further comment (Malaysian Insider).

Democratic Republic of Congo is in talks with  Malaysia Smelting  Corporation  over the construction of a foundry in the eastern Maniema  province. “Talks are very advanced with a big foreign mining company, Malaysia  Smelting Corporation, to set up a foundry in Kalima,” Mines Minister Martin  Kabwelulu told a mining conference on Monday. (Reuters)

The Las Vegas Sands casino operators are in discussions on a possible deal to  develop a gambling resort with a group that controls eight blocks of downtown‟s  Park West neighborhood. The Sands operators, however, say they can make the  deal work only if the Florida Legislature grants them an  exclusive gaming  license for Miami-Dade, Miami Commissioner Marc Sarnoff said.  That tactic,  if successful, would effectively stop  Genting‟s plan for a massive gaming  destination several blocks north on Biscayne Bay. (The Miami Herald)

The  Federation of Malaysian Manufacturers (FMM) expects a clear,  comprehensive and integrated policy on energy in Budget 2012 to be tabled on  Friday. It hopes the government will address natural gas shortages, including  liberalizing supply and distribution. “The government should allocate more  natural gas to the manufacturing sector,” it said in a statement (Bernama).

BMW Group Malaysia says it hopes to see a continuation of positive steps  such as abolition of the Open AP system and promotion of green technology  in the upcoming 2012 Budget. BMW Group Malaysia said an extension of tax  exemption for clean and green vehicles will develop Malaysia as a regional hub  for advanced and environmentally-friendly automotive technology. The  automaker would like to see the government allocate a concrete roadmap for the  upgrading of the existing Euro  2M based fuel specification to Euro 4 fuel  specification. (Bernama)

Perodua  has received orders for 6,000 units of the 1.5-litre Myvi variant  launched in mid-September, says managing director Datuk Aminar Rashid  Salleh. As for the 1.3-litre Myvi, launched mid-June, orders have been received  for almost 37,000 units. "Insyaallah, we will launch the 1.3 litre Myvi mid-November in Mauritius and late this year or early next year, we will launch  it (the model) in Sri Lanka. We chose the 1.3-litre Myvi as it is more affordable  than the 1.50-litre model and provides better fuel consumption," he added.  (Malaysian Reserve)

Guinness Anchor Bhd managing director Charles Ireland told StarBiz in an  e-mail that the company was hopeful the Government would not raise excise  duty this year.  “The last increase was in 2005. There were three consecutive years of  excise duty increase from 2003 to 2005, which resulted in excise duties  increasing by over 70%. “The beer and stout market has hardly grown in the last 14 years and if  there were an increase in excise this year, we expect volumes to decline.  This in turn will have a detrimental effect on the industry and the  economy,” he said, adding that local beer industry paid RM1.4bn in tax  revenue in 2010. (Star Biz)

British American Tobacco (M) Bhd managing director William Toh said  given the severity of the illegal cigarettes incidence in Malaysia, the industry was  hopeful that the Government would take a moderate tax approach to cigarette  excise in the upcoming budget. “International experiences have proven that smaller and gradual tax  increases will allow consumers to adjust to price changes, and are  therefore less likely to fuel demand for illegal cigarettes. On the contrary,  excessive tax increases cause significant price shocks to consumers who  will then accelerate their purchases of cheap illegal cigarettes as  alternatives.” (Star Biz)

Former Bursa Malaysia CEO,  Datuk Yusli Mohamed Yusoff, 52, has been  appointed non-executive director at YTL Power International. Yusli also sits  on the boards of Mudajaya and Mulpha International. (Malaysian Reserve)

Xian Leng Holdings said there might be some financial irregularities  involving some RM17.4m in capital expenditure. The company plans to hire an  independent party to carry out a special audit. The amount is significant  because for the past two financial years, Xian Leng's group revenue came in just  under RM20m. (BT)

VTI Vintage Bhd has won a contract from Gou Yaoming, an individual based  in China to manage and market a residential development of 30 units of  low-rise high-end apartments at Taman U-Thant, Kuala Lumpur.   The  contract sum for project management and marketing shall be 5% of estimated  gross sales revenue from the  proposed development. The gross sale revenue is  estimated to be RM100m. (BT)  

Bursa Malaysia Securities has publicly reprimanded  Haisan Resources for  breach of the Main Market Listing Requirements (MLR) and publicly  reprimanded and fined its directors a total of RM0.23m. Haisan was publicly  reprimanded for breach of paragraph 9.16(1)(a) of the MLR for failing to ensure  that its unaudited 4Q09 financial results (which was announced in Feb 2010)   took into account adjustments made in its audited accounts announced on 30  April 2010. The adjustments resulted in a 68% difference between the  company‟s audited and unaudited results. (BMSB)

The Malaysian Rating Corp Bhd (MARC) has downgraded  Scomi Group and  KMCOB Capital’s ratings by one notch to balance both entities‟ low  operating cashflow against recent improvement in Scomi‟s core business  operations. KMCOB is held under Scomi Oilfield (SOL), a 76%-owned  subsidiary. Both Scomi and SOL have maturing debt obligations and tight  liquidity which are the main reasons for the MARC downgrade. (Star Biz)

Maxis Bhd  : To launch IPTV Maxis Bhd has teamed up with All Asia Networks plc’s (Astro) associate and Australiabased Fetch TV to launch Internet Protocol television (IPTV) as part of its triple play offering. However, it is believed that Maxis has yet inked a deal with Astro for its IPTV offerings but the industry expects Maxis to launch its home broadband by the end of the month. Fetch TV, a pay-TV provider in Australia, is currently parked under the stable of Astro. It offers a range of pay TV-style programming over broadband for a monthly fee. Last year, Maxis signed a 10-year agreement for wholesale high speed broadband (HSBB) Services with Telekom Malaysia Bhd (TM), giving it instant access to all the households under coverage. It has also rolled out its own fibre to the home network in selected places. – StarBiz

Top Glove Corp Bhd : May acquire nitrile players Top Glove Corp Bhd may acquire rivals to expand its nitrile glove portfolio, and buy more rubber plantation land across the region as it faces external and industry headwinds that have battered the company’s earnings. Managing director KM Lee said while organic expansion is the preferred route to expand Top Glove’s nitrile glove output to 50% of the group’s annual capacity within three years, the company will not discount the possibility of mergers and acquisition (M&A) should viable opportunities come along. According to Lee, the company has doubled its capacity for nitrile or synthetic rubber gloves from 8% to 16% and may reach 25% by early next year. Lee said Top Glove’s production facilities are interchangeable between natural rubber and nitrile gloves to meet supply-demand conditions of both products.  Top Glove had an annual production capacity of 35.3 billion gloves as at June this year, translating into a global market share of 23%. He added that world rubber glove demand is seen at 150 billion pieces this year and is expected to register an annual growth of between 8% and 10%. Malaysia is the world’s largest rubber-glove producer, accounting for about 60% of the global pie. – The Edge

Bumi Armada incorporates a Russian unit
Bumi Armada has incorporated a subsidiary, Bumi Armada Russia Holdings (BARH), which will principally be involved in the oil and gas industry. The latter has an authorized capital of USD50k (RM159.8k). The incorporation is not expected to have any material impact on the earnings or net assets of Bumi Armada Group for FY11. (Malaysian Reserve)

MAA slips into PN17 status
The country’s biggest locally-owned insurer now falls under the PN17 category, leading to a drop in its share price yesterday amid active trade. MAA fell into PN17 because it has sold its major business to deal with debt and not due to other reasons like a loan default or shrinking shareholders’ funds. (BT)

20111005 1141 Local & Global Economic Related News.

The government will impose anti-dumping duty if the presence of imported  goods harms the local industry, Dewan Rakyat was told Tuesday.  International Trade and Industry Minister Datuk Seri Mustapa  Mohamed said so far only one anti-dumping case was recorded, that of bicycles  imported from China. As a result, anti-dumping duty of 11.38-186.09% was  imposed on the bicycles imported from China. The anti-dumping duty was  imposed for five years from 18 Jan 03 to 17 Jan 08, he said. (Bernama)

Investment from Japan has continued to be strong in Malaysia's electrical  and electronic (E&E) sector, especially in the form of reinvestment, despite  the uncertainties and weakened global growth, said International Trade and  Industry Minister Datuk Seri Mustapa Mohamed. The strength of the yen and  increase in cost structure issues faced by Japanese companies in some countries  have made Malaysia an attractive destination. Asked on the FDI outlook for  4Q11, Mustapa said the momentum is there and Malaysia is on track to achieve  the FDI target of RM55bn this year. (Bernama)

Malaysia‟s  economic growth momentum that was established last year is  expected to continue,  Second Finance Minister Dato' Seri Ahmad Husni  Mohamad  Hanadzlah said. The government will adopt a stance of “cautious  optimism” for the immediate future, he said. “We are presently paying very  close attention to the developments in the external financial sector,” he noted.  (Bloomberg)

US factory goods orders fell during Aug, the second drop in three months as  manufacturers struggle to keep growing within a weak economy. Orders  declined by 0.2% mom to US$451.05bn in Aug (+2.1% in Jul and -0.4% in Jun),  the Commerce Department said. Economists had predicted that orders wouldn't  change in Aug. (WSJ)

EU: S&P: Europe faces rising risk of ‘double dip’
Deteriorating business sentiment in European markets and a projected slowdown of growth in the US are weighing on economic prospects for Europe, Standard & Poor’s Ratings Services said in a report. S&P now forecasts GDP growth in the eurozone to be 1.1% in 2012, versus 1.5% in its earlier projection. For the UK, S&P expects GDP growth rate of 1.7% in 2012, slightly below its 1.8% projection made in August. (Starbiz)

US: Orders for capital goods rise by most in three months
Orders for US capital equipment increased in August by the most in three months, a sign business investment and exports held up in the face of mounting concern over the European debt crisis. Bookings for goods like computers and communications gear, excluding military hardware and aircraft, climbed 0.9%, the most since May, a Commerce Department report showed. Demand for all factory goods declined 0.2%. (Bloomberg)

US Federal Reserve Chairman Ben S. Bernanke said the  central bank stands ready to take  additional steps to boost US growth and cautioned  lawmakers against budget moves that would harm a “sluggish” recovery. The  Fed “will continue to closely monitor economic developments and is prepared to  take further action as appropriate to promote a stronger economic recovery in a  context of price stability,” Bernanke said. (Bloomberg)

Eurozone industrial producer prices index (PPI) fell by 0.1% mom in Aug,  according to a report published by Eurostat. The index for EU 27 nations fell by  0.2 percent, according to the report. On a yoy basis, PPI rose 5.9% in Aug.  Economists expected the PPI to drop 0.3% mom and rise 5.7% yoy in Aug.  (Xinhua)

EU: S&P: Europe faces rising risk of ‘double dip’
Deteriorating business sentiment in European markets and a projected slowdown of growth in the US are weighing on economic prospects for Europe, Standard & Poor’s Ratings Services said in a report. S&P now forecasts GDP growth in the eurozone to be 1.1% in 2012, versus 1.5% in its earlier projection. For the UK, S&P expects GDP growth rate of 1.7% in 2012, slightly below its 1.8% projection made in August. (Starbiz)

Greece: Has cash to meet needs until mid-November, Venizelos says
Finance Minister Evangelos Venizelos said Greece has enough cash to operate until mid-November, after euro-region finance ministers delayed a decision on the nation’s next emergency-loan payment. With cash needs covered until then, Greece has time to carry out reforms demanded in return for a new bailout plan, Venizelos told reporters in Athens today after returning from the ministers’ meeting in Luxembourg. The new package “will give a more radical and more complete answer to our problems,” Venizelos said. The ministers, who yesterday discussed re-crafting a July deal on private-investor participation in a new Greek rescue, pushed back a decision on the release of the country’s next EUR 8bn (USD10.6bn) loan installment until after 13 Oct. (Bloomberg)

Italy: Credit rating cut by Moody’s on weak growth outlook
Italy’s credit rating was cut by Moody’s Investors Service for the first time in almost two decades on concern that Prime Minister Silvio Berlusconi’s government will struggle to reduce the region’s second-largest debt amid chronically weak growth. Moody’s lowered Italy’s rating three levels to A2 from Aa2, with a negative outlook, the New York-based company said. The action comes after Standard & Poor’s downgraded Italy on 20 Sept for the first time in five years. Italy was last cut by Moody’s in May 1993. Italy gave final approval last month to a EUR54bn (USD72bn) austerity plan aimed at balancing the budget in 2013 that convinced the European Central Bank to buy the nation’s bonds. (Bloomberg)

China: Expansion in services may ease slowdown concerns
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 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 separate index gained to 53 in September from a series-record low of 50.6 the previous month. Numbers above 50 indicate expansion. (Bloomberg)

Japanese wage earners' total  cash earnings fell 0.6% yoy in Aug (-0.2% in  Jul), dropping for the third month in a row, the labour ministry said. Overtime  pay, a barometre of strength in corporate activity, fell 2.2% yoy in Aug (+0.3% in  Jul) to its lowest level since May. (Reuters)

Singapore’s purchasing managers' index fell to 48.3 in Sep from 49.4 in  Aug. PMI for electronics fell to 47.2 in Sep from 48.0 in Aug. (Dow Jones)

The World Bank predicts slower growth in Indonesia of 6.4% in 2011 and in  6.3% in 2012. The bank had earlier predicted 6.7% growth for 2012. (Jakarta  Post) Downstream oil and gas regulator BPH Migas reported that in 9M11, the  consumption of  subsidized fuels had touched 30,767,194 kiloliters (KL) or  76% of the quota of 40,494,000 KL. (Jakarta Post)

Thailand is thinking of targeting headline  inflation rather than the current  core rate, which is used to guide monetary policy, Finance Minister Thirachai  Phuvanatnaranubala said. The central bank could target headline inflation of  3% plus or minus 1.5% pts. That effective range of 1.5% to 4.5% compares with a  target now for core inflation of 0.5% to 3.0%.  (Reuters)

20111005 1125 Global Market 7 Commodities Related News.

GLOBAL MARKETS - US stocks stage late rally; euro up on Bernanke
NEW YORK, Oct 4 (Reuters) - A late rally in U.S. stocks pulled Wall Street out of bear market territory on Tuesday, and the euro rose versus the dollar after Federal Reserve Chairman Ben Bernanke promised more economic stimulus if needed.
Reports that European finance ministers agreed to prepare action to safeguard their banks, following the first bailout of a lender as a result of the region's debt crisis, were cited as giving stocks a boost heading into the close.

COMMODITIES - Brent, copper tumble despite Bernanke remarks
NEW YORK, Oct 4 (Reuters) - Brent oil fell on Tuesday, closing below $100 a barrel for the first time since February, while copper ended at a 15-month low and gold dropped 3 percent, as mounting worries that Greece could default outweighed hopes for more Federal Reserve stimulus.
Many commodity prices bounced up off early lows when U.S. Federal Reserve Chairman Ben Bernanke told a Joint Economic Committee of Congress that the U.S. central bank was prepared to take steps to help an economic recovery that is "close to faltering&#8221.

US crude surges over $2 on oil stock drawdown
SINGAPORE, Oct 5 (Reuters) - U.S. crude oil rose more than $2 on Wednesday after weekly data from the American Petroleum Institute showed deep drawdowns in crude and refined product inventories.
U.S. crude for November delivery surged to an intraday high of $78.46 a barrel, up $2.79 in early Asia trading.

US gasoline demand dips on price, economy-MasterCard
Oct 4 (Reuters) - U.S. retail gasoline demand fell last week from a year earlier as motorists drove less due to economic uncertainty and elevated pump prices, MasterCard said in its SpendingPulse report on Tuesday.
Demand dropped 2.9 percent year-on-year as a gallon of gasoline cost 28.6 percent more than a year earlier, the data showed.

NYMEX - Natural gas ends up, first gain in five sessions  
NEW YORK, Oct 4 (Reuters) - U.S. natural gas futures, backed by technical buying after four straight losing sessions, ended higher on Tuesday but mild weather forecasts and concerns about growing supplies limited the upside.
"We bounced off yesterday's low, so that looks like technical support now, but there's no (hot or cold) weather and recent economic data hasn't looked good,".

EURO COAL - Prices slide on Greek default fears
LONDON, Oct 4 (Reuters) - Prompt physical coal prices fell further on Tuesday as growing fears for the world economy and the possibility of a default by debt-stricken Greece took their toll.
"The biggest factor is macro issues now with fears over the euro," one European trader said. "Coal is really feeling the pinch."

20111005 1122 Global Freight Related News.

COPENHAGEN/LONDON, Sept 12 (Reuters) - Maersk Line, the world's biggest container shipping company, threw out a challenge to rivals by introducing a more streamlined and frequent service without a surcharge on its key Asia-Europe routes.
Coupled with a warning that freight rates would remain under pressure for the next 12 months, Maersk's move amounts to a bid to compete aggressively on high capacity routes while avoiding slashing rates and starting a price war.

AQABA, Jordan, Sept 21 (Reuters) - It has not been as busy for a long while for vessel supervisor Mohammad Qassem, who is overseeing the loading of a commercial cargo ship that has just anchored in the sparkling blue waters of Jordan's Aqaba port.
"With all the problems around us, it's amazing. These few months have been very active," said Qassem, 49, near one of the port's six large cranes at a berth that has become a huge construction site.

COPENHAGEN, Sept 23 (Reuters) - Danish shipping company Torm's  two biggest shareholders have combined their Torm holdings in Cyprus-based Alpha Trust which now holds more than 52 percent of the stock, Torm and the shareholders said on Friday.
Eirini Nomikou, owner of Cyprus-based Menfield Navigation Company Limited, transferred her entire 20.01 percent interest as a gift to Alpha Trust, Torm and attorneys for the shareholders said in separate statements.

COPENHAGEN, Sept 28 (Reuters) - Danish shipping company Nordic Bulk Carriers said it has saved a third of the cost and nearly half the time in shipping goods to China by taking advantage of receding Arctic ice to sail north of Russia instead of via the Suez Canal.
As the climate warms up and ice melts, many shipping companies are eyeing the Northern Sea Route as a way to cut voyage times and costs in the future.

HONG KONG, Oct 3 (Reuters) - The world's container shipping market may remain bleak for the rest of the year, after seeing shipping rates halved in the third quarter as western buyers tighten their purse strings amid growing fears of a global recession, an expert said on Monday.
"We can't see any major factors that can help stimulate U.S. economic recovery and Europe's situation is even worse," said Sunny Ho, executive director of Hong Kong Shippers Council, which represents main exporters in Hong Kong -- a major international shipping centre.

SINGAPORE, Oct 3 (Reuters) - At least four U.S.-listed shipping companies are likely to face restructuring or declare bankruptcy over the next 12 months as the long downturn in the freight market forces further consolidation, an industry executive told Reuters.
Norton Rose, a leading law firm in the transport and commodities industries, is involved in "numerous consolidation discussions" as maritime firms struggle with rock bottom freight rates and a glut of new vessels, said Harry Theochari, the company's global head of transport.

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.

LAMU, Kenya, Sept 30 (Reuters) - Kenya's ambitions to build a world-class port in its southern Lamu region would have a big payoff but also inflict irrevocable damage on the area's image as a tourist paradise and on the livelihoods of its fishermen.
The $23 billion project, which includes a $5.3 billion port, will link Lamu to Ethiopia and newly independent oil-rich South Sudan, bringing investment and much-needed jobs to the region. A railway, pipeline, highway, airport and refinery would follow.

LONDON, Sept 27 (Reuters) - Libya's state owned oil tanker fleet is set to be back in business within a month, with some vessels ready for trading in the next two weeks after months at anchorage due to war, the country's port authority chief told Reuters on Tuesday.
Libya's interim rulers are stepping up efforts to get the economy and Africa's previously third biggest oil producer back on track after former leader Muammar Gaddafi was toppled last month. The country's seaborne trade is seen as vital for resumption of trading activity.

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.  

SINGAPORE, Sept 27 (Reuters) - Glencore's  shipping unit, ST Shipping, may reduce the number of oil tankers in its fleet over the next six months because rock-bottom freight rates have cut into profit margins, a company executive said on Tuesday.
ST Shipping is looking at returning several crude oil tankers to owners when long-term contracts expire in the next few months due to negative freight rates, said company director Kent Paulli.

SINGAPORE, Sept 12 (Reuters) - The Baltic Exchange's Dry Index, the benchmark for seaborne trade, could tumble by nearly half from current levels by the end of 2011 as a flood of new ships offsets higher Asian commodities demand, a senior executive said on Monday.
The BDI index has surged 46 percent over the last month, closing on Friday at 1,838 points, its highest level so far this year, supported by strong iron ore and coal demand in China and Japan.

SINGAPORE, Sept 6 (Reuters) - China's campaign to protect its maritime industry during a severe downturn will become more costly for foreign companies as Beijing grabs a bigger slice of the profits for shipping iron ore, coal and grains to the world's second largest economy.
China's shipping sector -- led by state-owned COSCO Group -- has become one of the world's most influential with its fleet more than doubling over the last decade, matching the country's appetite for commodities and raw materials.

OSLO, Sept 20 (Reuters) - Players in the oil tanker market are in concrete talks over consolidation, the chief executive of Frontline , the world's largest independent oil shipper, told Reuters on Tuesday.
"It is correct that there are different discussions going on now," Chief Executive Jens Martin Jensen said in an interview.

DAKAR/LONDON, Sept 21 (Reuters) - Nigerian pirate gangs are moving into the waters of neighbouring countries and attacking vessels further offshore after being driven from their coastal haunts by a military crackdown.
The shift to deeper waters mirrors one by their better-known Somali counterparts after pressure from international warships and raises the threat to shipping in the Gulf of Guinea, which is rich in oil and minerals.

PARIS, Sept 20 (Reuters) - More ship insurers are backing the use of private armed guards on merchant vessels at sea to combat Somali piracy as attacks
and the resulting costs are set to rise in coming weeks, industry officials said on Tuesday.
Pirate attacks on oil tankers and other ships are costing the world economy billions of dollars a year and navies have struggled to combat the menace, especially in the vast Indian Ocean. Seaborne gangs are set to ramp up attacks in the area after a monsoon abates.

HAMBURG/LONDON, Sept 20 (Reuters) - Russian wheat exporters aim to ramp up sales to nascent markets such as South America due to their cheap price edge, which may also give a boost to freight rates which are struggling with a ship glut.
Millions of tonnes of low-priced Russian wheat have surged onto global markets since Russia ended a near year-long grain export ban in July, sweeping aside competitors including those from Europe and the United States.

PARIS, Sept 20 (Reuters) - The global dry bulk freight market is expected to stay weak throughout 2012 and into 2013 due to an oversupply of ships, a senior executive of major ship brokerage Braemar Seascope said on Tuesday.
The industry has been struggling with a supply glut that has outpaced demand for commodities such as coal and iron ore.

LONDON, Sept 14 (Reuters) - The dry bulk shipping industry will face more pressure in the coming months as owners struggle with a growing glut of vessels and a global economic slowdown, a top ship industry official said on Wednesday.
"The situation is very difficult and quite serious," said Spyros Polemis, chairman of the International Chamber of Shipping (ICS), whose association represents over 80 percent of the world's merchant fleet.

LONDON, Sept 14 (Reuters) - Somali pirate attacks are expected to surge in coming weeks after a monsoon abates, but defence cuts will undermine international efforts to fight them, a senior European Union navy official said on Wednesday.    
Pirate attacks on oil tankers and other ships are costing the world economy billions of dollars a year and navies have struggled to combat the menace, especially in the vast expanses of the Indian Ocean.

LONDON, Sept 5 (Reuters) - Brazilian mining giant Vale  is in talks with Chinese and other ship owners to sell or lease its planned fleet of giant bulk carriers, a Vale official told Reuters on Monday.
The move comes less than three months after Vale's first iron ore carrier, at 362 metres long the world's largest dry-bulk vessel, failed to gain access to Chinese ports and was forced to divert to Italy on its maiden voyage.

LONDON, Sept 2 (Reuters) - The slow pace of resumption of Libyan crude exports and a European Union oil embargo on Syria are reducing prospects for a ship rate recovery this year in the smaller Mediterranean tanker market, analysts and brokers say.
Aframax tankers on the Mediterranean route, which transport the majority of Libya's crude oil, normally carry up to 600,000 barrel loads.  

PARIS, Sept 19 (Reuters) - French oil major Total's  shipping division is not planning to transport any Libyan crude oil for the time being, an executive at the division said on Monday.
Libya's Arabian Gulf Oil Company started pumping oil this month, with the aim of reaching 200,000 barrels per day in output by the end of September and 1 million barrels of exports every 10 days from the eastern terminal of Tobruk.

PERTH, Sept 13 (Reuters) - A recent boom in speculative orders for liquefied natural gas (LNG) tankers could backfire for investors in the long term, as the tankers may enter the market just as demand for them wanes, energy analysts Wood Mackenzie said in report on Tuesday.  
Orders for ships have skyrocketed as the daily charter rate more than tripled from $30,000 to $100,000 a day in the past year. Thirty-eight ships have been ordered since March, according to Woodmac, more than ten times the number of ships ordered in the previous two years.    

Sept 8 (Reuters) - Drybulk ship owner Seanergy Maritime Holdings Corp  would avoid long-term contracts with charterers such as China COSCO Holdings  , which recently unilaterally stopped payments on some of its leased ships.
COSCO Group, China's largest maritime conglomerate, angered many in the shipping community by halting payments for ships it had chartered, so it could renegotiate better terms.

20111005 1120 Global Market Related News.

Most Asian Stocks Fall on Europe Debt Concern (Source: Bloomberg)
Most Asian stocks fell as a downgrade of Italy’s credit rating overshadowed signs that European officials may reach consensus on recapitalizing the region’s banks to protect them from the sovereign-debt crisis. Toyota Motor Corp. (7203), the world’s biggest carmaker, fell 1.4 percent in Tokyo. Sony Corp. (6758), Japan’s No. 1 exporter of consumer electronics, lost 0.8 percent. BHP Billiton Ltd. (BHP), the largest global mining company gained 3,4 percent as commodity prices rallied after the Financial Times reported the plan to recapitalize European banks. The MSCI Asia Pacific Index was little changed at 107.54 as of 10:19 a.m. in Tokyo. About two stocks fell for each that advanced.
“There still remains considerable work to be done to stabilize both the sovereign debt and banking sector in Europe,” said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion. Stocks in Asia “ remain vulnerable to further disappointments.”

Bernanke Says Federal Reserve Ready to Boost ‘Close to Faltering’ Growth (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke said the central bank can take further steps to sustain a recovery that’s “close to faltering” and cautioned lawmakers against making changes in fiscal policy that harm growth. The Fed can give more information about its pledge to keep interest rates low at least through mid-2013, reduce the rate paid on banks’ reserve deposits or buy more securities, Bernanke said today in testimony to Congress’s Joint Economic Committee in Washington, reiterating options he mentioned in July. He signaled that higher inflation this year won’t stop the Fed, saying it hasn’t become “ingrained” in the economy. Bernanke is struggling to find ways to reduce unemployment stuck at 9 percent and avert a second recession in three years after deploying unconventional stimulus tools in August and September. Europe’s sovereign-debt crisis poses risks to growth already weak from housing and joblessness, the Fed chief said.

Orders for U.S. Capital Goods Rise by Most in Three Months (Source: Bloomberg)
Orders for U.S. capital equipment increased in August by the most in three months, a sign business investment and exports held up in the face of mounting concern over the European debt crisis. Bookings for goods like computers and communications gear, excluding military hardware and aircraft, climbed 0.9 percent, the most since May, a Commerce Department report showed today in Washington. Demand for all factory goods declined 0.2 percent. Faster growth in emerging economies helped sustain demand for American-made turbines and equipment even as U.S. households cut back. Federal Reserve Chairman Ben S. Bernanke said today that policy makers stand ready to take further action to propel a recovery that’s shown signs of faltering.

Treasuries Fail to Recoup Losses as Bernanke Says He’s Ready to Do More (Source: Bloomberg)
Treasuries failed to recoup losses from yesterday after Federal Reserve Chairman Ben S. Bernanke said he’s ready to do more to sustain U.S. economic growth. The U.S. central bank plans to buy $1 billion to $1.5 billion of Treasury Inflation Protected Securities due from January 2018 to February 2041 today, according to the New York Fed’s website. The purchases are part of its effort to spur a slowing U.S. economy. “Anything positive from officials gives investors some relief,” said Chungkeun Oh, a fixed-income trader in Seoul at Industrial Bank of Korea, South Korea’s largest lender to small and medium-sized companies. Bernanke’s remarks “gave investors a small amount of confidence and led yields to bounce,” he said.

U.S. Stocks Rally as S&P 500 Jumps in Final Hour After Europe Bank Report (Source: Bloomberg)
U.S. stocks rallied, driving the Standard & Poor’s 500 Index up 4.1 percent in the final 50 minutes of trading, amid speculation European Union officials are examining how to recapitalize the region’s banks. Financial stocks in the Standard & Poor’s 500 Index jumped 4.1 percent as a group, reversing a 2.9 percent drop. Bank of America Corp. (BAC) and JPMorgan Chase & Co. (JPM) added at least 4.1 percent. DuPont Co. and Hewlett-Packard Co. (HPQ) rallied more than 3.6 percent, pacing in companies most-tied to economic growth. AMR Corp. (AMR) surged 21 percent as analysts said the parent of American Airlines is unlikely to file for bankruptcy. The S&P 500 rose 2.3 percent to 1,123.95 at 4 p.m. New York time. The index plunged 2.2 percent earlier, to a level that would mark more than a 20 percent drop from an April peak, the threshold of a bear market. The Dow Jones Industrial Average lost 153.41 points, or 1.4 percent, to 10,808.71 today.

China Currency Bill Runs Into GOP Opposition (Source: Bloomberg)
U.S. Senate legislation that would punish China for an undervalued currency ran into opposition from senators and a roadblock by House Speaker John Boehner, who said the bill was “pretty dangerous.” Boehner’s opposition may derail a bill backed by 225 House members, including 61 Republicans. The bill is aimed at forcing China to address what Federal Reserve Chairman Ben S. Bernanke yesterday called a currency policy that’s “blocking what might be a more normal recovery process in the global economy.” In the Senate, Republicans sought an amendment yesterday to make it harder for unilateral U.S. action, something China’s government said this week would risk triggering a trade war and affecting how it overhauls exchange-rate policy. The Obama administration has said it’s reviewing the bill, citing the need to comply with global trade obligations.

China Says U.S. Risks Trade War as Senate Considers Measure Targeting Yuan (Source: Bloomberg)
China said the U.S. risks triggering a trade war through legislation before the Senate that would punish the Asian nation for what lawmakers say is the undervaluation of its currency, the yuan. The People’s Bank of China said it “regrets” the Senate vote yesterday to consider the bill, and the Foreign Ministry said the measure would violate World Trade Organization rules, in statements today on their websites. The bill is aimed at letting American businesses seek duties on Chinese imports to make up for the weak currency. The 79-19 vote allows the Senate to begin considering the bill introduced by Democrat Sherrod Brown of Ohio and Charles Schumer of New York with co-sponsors including Republicans Lindsey Graham of South Carolina and Jeff Sessions of Alabama. The legislation is opposed by business groups, such as the U.S. Chamber of Commerce, that say it may cause a trade dispute.

Japanese Stocks Fall Fourth Day After Moody’s Cuts Italy’s Credit Rating (Source: Bloomberg)
Japanese stocks fell for a fourth day, sending the Topix index toward its lowest intra-day level since the March earthquake, as a cut of Italy’s debt rating overshadowed signs Europe may reach consensus on recapitalizing its banks. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest lender by market value, led banks lower. Marubeni Corp. (8002), a trading company, dropped 4.1 percent after commodity prices fell. Fast Retailing Co., Asia’s biggest apparel chain, slid 4.6 percent after saying its sales fell last month. The Nikkei 225 (NKY) Stock Average declined 0.8 percent to 8,385.71 at the 11 a.m. trading break in Tokyo. The broader Topix index fell 1.2 percent to 727.19, approaching its lowest intra-day level since the country’s record earthquake and tsunami on March 11. The gauge fell as low as 725.9 on March 15.

European Stocks Drop for Third Day on Debt; Dexia Sinks, Air France Tumble (Source: Bloomberg)
European stocks dropped for a third day, the longest losing streak in four weeks, as policy makers signaled they may renegotiate terms of Greece’s bailout, deepening concern about the impact of the debt crisis. Dexia SA (DEXB) tumbled to a record low as the board asked Belgium’s biggest bank by assets to solve its “structural problems.” Deutsche Bank AG (DBK) slid 4.3 percent after abandoning its 2011 earnings forecast. National Bank of Greece SA (ETE) sank to the lowest since 1996. Air France-KLM (AF) Group retreated to a 20- year low after the head of the IATA industry association said profit projections may be unsustainable. The benchmark Stoxx Europe 600 Index fell 2.8 percent to 217.46 at the 4:30 p.m. close in London, the lowest level in a week. European finance chiefs meeting yesterday considered “technical revisions” to the second Greek bailout, Luxembourg Prime Minister Jean-Claude Juncker said today, fueling concern bondholders may have to take bigger losses on the nation’s debt.

Moody’s Cuts Italy Rating Following S&P (Source: Bloomberg)
Italy’s credit rating was cut by Moody’s Investors Service for the first time in almost two decades on concern that Prime Minister Silvio Berlusconi’s government will struggle to reduce the region’s second-largest debt amid chronically weak growth. Moody’s lowered Italy’s rating three levels to A2 from Aa2, with a negative outlook, the New York-based company said in a statement yesterday. The action comes after Standard & Poor’s downgraded Italy on Sept. 20 for the first time in five years. Italy was last cut by Moody’s in May 1993. Italy gave final approval last month to a 54 billion-euro ($72 billion) austerity plan aimed at balancing the budget in 2013 that convinced the European Central Bank to buy the nation’s bonds. While the purchases initially brought down bond yields by about 100 basis points, Italy’s borrowing costs remain near record highs because of euro-area debt crisis contagion.

Merkel Says Those Demanding Endgame to Europe’s Debt Crisis Have ‘No Clue’ (Source: Bloomberg)
German Chancellor Angela Merkel stiffened her resistance to joint euro-area bond sales, saying that investors yearning for a single gesture that can end Europe’s sovereign debt crisis now will be disappointed. The euro area has to resolve “that the time of living above our means is over once and for all” and pursue debt reduction that will stretch over “many years,” Merkel said in a speech to members of her Christian Democratic Union late yesterday in Magdeburg, eastern Germany. While stepping up her rejection of a Greek default, she said that issuance of shared debt by euro countries isn’t the solution to the problem spilling from Greece, even though some may long for the “big bang” to end the debt crisis. “Whoever believes that has no clue about the economy,” she said.

Greece Has Cash to Meet Needs Until Mid-November, Finance Minister Says (Source: Bloomberg)
Finance Minister Evangelos Venizelos said Greece has enough cash to operate until mid-November, after euro-region finance ministers delayed a decision on the nation’s next emergency-loan payment. With cash needs covered until then, Greece has time to carry out reforms demanded in return for a new bailout plan, Venizelos told reporters in Athens today after returning from the ministers’ meeting in Luxembourg. The new package “will give a more radical and more complete answer to our problems,” Venizelos said. The ministers, who yesterday discussed re-crafting a July deal on private-investor participation in a new Greek rescue, pushed back a decision on the release of the country’s next 8 billion-euro ($10.6 billion) loan installment until after Oct. 13. It was the second postponement of a vote originally slated for yesterday as part of the 110 billion-euro lifeline granted to Greece last year. The decision on the payment may come at an Oct. 17-18 European summit.

EU Signals Investors May Have to Take Bigger Losses in Second Greek Rescue (Source: Bloomberg)
European governments hinted that bondholders may be saddled with bigger losses on Greek debt, intensifying market jitters that a second aid package designed to quell the fiscal crisis might unravel. Finance ministers considered recrafting a July deal that foresaw investors contributing 50 billion euros ($66 billion) to a 159 billion-euro rescue. The debt exchanges and rollovers targeted bondholder losses of 21 percent. “We will have to assess if the conditions are still met,” German Finance Minister Wolfgang Schaeuble told reporters after a two-day euro meeting in Luxembourg. “It is completely clear that this statement includes the possibility that that is no longer the case and adjustments are needed.”

Stevens Rate-Cut Signal Sends Yield Gap to 20-Month Low: Australia Credit (Source: Bloomberg)
Australian bond yields tumbled to the lowest level in 20 months relative to U.S. Treasuries after central bank Governor Glenn Stevens indicated he’s willing to cut the developed world’s highest benchmark interest rate. The extra yield investors demand to hold the nation’s two- year securities instead of Treasuries fell to 3.22 percent, the least since Feb. 3, 2010, from as much as 4.58 percent on Jan. 3. Cash-rate futures showed traders wagering on an 80 percent chance the benchmark will be cut to 4.25 percent from 4.75 percent by November. Stevens, who held rates yesterday for an 11th straight month, signaled slowing inflation may give him scope to lower borrowing costs. Such a move would follow cuts by nations from Brazil to Israel to counter slowdowns in Europe and the U.S. In Australia, business and consumer confidence have weakened in recent months and the nation’s unemployment climbed to a 10- month high in August.

Euro Weakens Versus Dollar, Yen (Source: Bloomberg)
The euro fell against the dollar on speculation that mounting debt concerns and signs of economic slowdown will compel the European Central Bank to increase monetary stimulus at its meeting tomorrow. The 17-nation euro failed to extend its biggest jump in more than five months versus the yen as traders increased bets the ECB will lower borrowing costs and before a report today forecast to show the region’s retail sales declined in August. The dollar gained against most of its major peers after Federal Reserve Chairman Ben S. Bernanke signaled willingness to step up measures to spur growth in the U.S. The European economy “is looking softer on some key measures,” said Greg Gibbs, a currency strategist at Royal Bank of Scotland Group Plc in Sydney. “I think they will cut rates on Thursday. We’ll see the euro more likely to be lower than higher from current levels.”

20111005 1119 Global Commodities Related News.

No inflation respite for Asia despite fall in food, fuel prices
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.
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.

Commodities Extend Slump to 10-Month Low, Led by Metals, on Europe’s Woes (Source: Bloomberg)
Commodities declined, extending a slump to a 10-month low, on concern that demand for energy, metals and crops will decline as Europe’s escalating debt woes choke the global economy. Goldman Sachs Group Inc. cut its global growth forecasts and predicted recessions in Germany and France. European governments hinted that bondholders may be saddled with bigger losses on Greek debt. The Standard & Poor’s GSCI index of raw materials has dropped 24 percent from a 32-month high in April. “We are seeing continuing pressure across the commodities complex from these concerns about the global growth prospects,” said Michael McCarthy, a chief market strategist at CMC Markets Asia Pacific Pty Ltd. in Sydney. “The markets are universally bearish.”

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.

INTL FC Stone raises US 2011 corn yield by 1.6 pct
CHICAGO, Oct 3 (Reuters) - Commodity brokerage firm INTL FC Stone on Monday said it had raised its forecast of the U.S. 2011 corn yield to 148.7 bushels per acre (bpa), up 1.6 percent from its previous estimate of 146.3.
The firm estimated U.S. 2011 corn production at 12.553 billion bushels, above its Sept. 1 forecast of 12.350 billion.

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.

Western Canada crop harvest 92 pct complete
WINNIPEG, Manitoba, Oct 3 (Reuters) - Western Canadian farmers have harvested 92 percent of the overall crop, exceeding the average completion for this time of year, the Canadian Wheat Board said on Monday.
Normally, farmers would have harvested 88 percent of the crop by now, but last year only a little over half was in the bin, the CWB said in its weekly bulletin.

US harvest to quicken, dry Plains to finally see rains
CHICAGO, Oct 3 (Reuters) - Excellent weather for harvesting corn and soybeans and coming rains in the dry U.S. Plains highlight the week ahead for the U.S. crop belt, an agricultural meteorologist said on Monday.
"Near perfect harvest weather for the next week or even 10 days, about as perfect as one could order up," said John Dee, meteorologist for Global Weather Monitoring.

Ukraine grain exports rise 5.7 pct Sept/Aug
KIEV, Oct 3 (Reuters) - Ukraine's grain exports rose to about 1.48 million tonnes in September from 1.4 million in August, the director of Ukrainian Agrarian Confederation Serhiy Stoyanov said on Monday.
Stoyanov told Reuters the total volume had included about 800,000 tonnes of wheat.

Corn (Source: CME)
US corn futures stumble with the rest of the CBOT grain complex, but they managed to bounce off early lows as end-user buying surfaced to trim losses. The corn market is under pressure from global economic concerns and prospects for higher-than-expected US supplies. However, US inventories are projected to fall to historically low levels by next summer, and end users are starting to do some bargain shopping on recent price breaks, analysts say. CBOT December corn ends down 4 3/4c at $5.87 3/4 a bushel.

Wheat (Source: CME)
US wheat futures end lower on easing supply worries and outside market pressure. Weaker equities and technical momentum weighed on grains generally, and wheat in particular was pressured by rains in the forecast for the US and elsewhere. Still, Tom Leffler of Leffler Commodities says the development of the US hard red winter crop will remain slow because of dry conditions. CBOT Dec wheat ends down 15 1/2c, or 2.5%, to $6.04 a bushel; KCBT Dec wheat down 15 1/2c to $6.86 1/2; MGEX Dec wheat down 22 1/2c to $8.62 3/4.

Rice (Source: CME)
US rice futures end lower on weak demand and outside market pressure. Demand for US rice is weak, due in part to Brazilian exports, the US Rice Producers Association says in a newsletter. Adding to pressure, weakness in equities and general gloom about the economy, which helped send grains lower across the board. CBOT Nov rice ends down 14 1/2c, or 0.9%, to $15.84 1/2 per hundredweight.

India Rice Exports To Hit 2 Million To 5 Million Tons -Official (Source: CME)
India could export between two million and five million tons of rice after recently ending its export ban, the country's agriculture minister said. Rice exports have been brisk since resuming last month, although wheat exports, which also recently resumed, have stalled as India's price moved above world prices. Agriculture minister P.K. Basu said wheat exports could remain sluggish, but he told Dow Jones Newswires on the sidelines of a conference he expects rice exports to total two million to five million tons. Basu didn't specify a time period for when he expects that total to be reached. Exports of five million could top current assumptions. Two top industry executives recently said India could export as much as 2.5 million tons by March. India is expecting an all-time high rice output of 105 million tons in the crop year that began July 1.
Some wheat traders have said the country has been too slow to allow exports, and missed an opportunity with wheat. Basu said that the country's priority is to ensure stable food prices, and that releasing exports too soon would have "huge" political implications. Two straight years of favorable monsoons have boosted the country's agricultural production, and shifted concerns from whether the country could produce enough grain to whether it had enough storage space to prevent it from spoiling. Basu said an initiative to increase storage space should resolve the country's shortage in two or two-and-a-half years. Improving production remains a focus, however. Basu said that while the national government's regulatory approval process for genetically modified crops is "flawless," changes announced this summer that give provinces authority on whether to approve field trials subject the matter to politics and could slow adoption.
But he added that while some states in India are more cautious about genetically modified crops, "I don't think there are any states that are standing against the technology."

Australian Rains Lock In Wheat Output; Record Availability Forecast (Source: CME)
Rainfall in most-wheat growing districts in Australia over the past week has solidified forecasts for production of 24.5 million metric tons this crop year, but likely hasn't added to overall yields, a wheat exporter said Tuesday. Wheat production won't reach the record 26.3 million tons set in the crop year ended March 31, but the availability of the grain in the country likely will reach an all-time high due to the carryover of unsold grain into the marketing year that started Oct. 1, said Mike Chaseling, Deputy Chairman of Emerald Group Australia, a grain trader half owned by global trading giant Sumitomo Corp. "The rain probably doesn't add a lot of yield for this year, but it certainly locks in where the forecasts were, which is a really positive thing," he said by phone. Emerald forecasts wheat output this crop year 24.5 million tons. Chaseling said there will be a reasonable amount of carryover of unsold old-crop inventory into this marketing year.
"For the bulk handlers, it's like having a big crop again, the pipeline is all full," he said. Normal weather during harvest in coming months would produce a normal crop profile and allow opportunities for "judicious blending" of old-crop wheat downgraded to livestock feed with new-crop milling wheat, possibly creating more value, he said.

Egypt's GASC Ups Wheat Quality Spec; Mulls Ukraine As Supplier (Source: CME)
Egypt's state grain buyer will implement new quality criteria for wheat imports, a senior executive said, even as it considers resuming exports from Ukraine, with which it has previously fallen out over quality issues. Mohammed Abdullah, head of importing at Egypt's General Authority for Supply and Commodities Exchange, or GASC, said it has boosted its protein requirements as there is currently a large amount of quality wheat available throughout the world, at low prices. GASC has set the protein content at 12% for Russian sellers from the previous 11%, Abdullah said. For other suppliers, such as France, Australia and the U.S., the protein requirement has risen to 11.5% from 11%, he said. The move comes as GASC looks likely to add Ukraine to its list of approved suppliers for the first time since 2008. GASC officials are currently in Ukraine to examine renewing wheat imports from there in a bid to widen the world's largest wheat buyer's import base.
The Ukrainian Agrarian Confederation said Monday that GASC "is ready to return Ukraine in the list of its official suppliers if...a state-run body guarantees quality of Ukrainian grain." GASC stopped buying Ukrainian wheat three years ago after quality disputes soured trade relations. A fortnight ago, grain merchant Venus offered 60,000 metric tons of Ukrainian wheat at $260/ton in a GASC tender--priced below offers made for Russian supplies. Although the wheat was disqualified because of its origin, that it was offered at all is seen as an indication that Ukraine will soon be back on the list of suppliers. "Russian wheat is still the cheapest offer into Egypt, but the fact that Ukrainian wheat was offered cheaper (but not accepted) may point the way to the future, especially if current export duties are relaxed," said U.K.-based merchant, Gleadell.
The addition of Ukrainian supplies to GASC's closely-watched tenders could put more bearish pressure on wheat prices as supplies are being offered cheaper than from Russia, despite government-imposed export duties on Ukrainian grain. European wheat futures have lost more than 12% since the start of September and the lingering effects of the global economic crisis and weakening fundamentals are sending prices lower. Yet traders warned that export duties imposed by Kiev and the poor quality of much of Ukraine's harvest could hamper its competitiveness as a supplier to Egypt. They estimate around 70% of this year's harvest will be feed wheat due to poor weather. Ukraine's grain exports are already lagging last year despite a bigger harvest. Traders blame export duties for hampering shipments, which at 3.5 million tons in July-September are 200,000 tons below the year earlier.

Soybeans, Corn, Wheat Slide as Economic Slump May Reduce Exports From U.S. (Source: Bloomberg)
Soybeans tumbled to the lowest in almost a year and corn and wheat dropped on speculation that demand for the crops will shrink as the global economy falters, while the accelerating U.S. harvest boosts supplies. The Standard & Poor’s 500 Index of equities was poised to enter a bear market today after sliding more than 20 percent from the peak this year on concern that European leaders may need to renegotiate Greece’s bailout. About 21 percent of the U.S. corn crop and 19 percent of the soybeans were harvested as of Oct. 2, boosting supplies for makers of food, fuel and animal feed. “We have some harvest pressure, we have some weaker demand, we’ve got a stronger dollar, and we’ve got a weakening global economy,” Frank Cholly Sr., a senior market strategist at MF Global Holdings Inc., said by telephone from Chicago. “There are definitely a lot of negative forces at play all at the same time.”

Ukraine white sugar output rises 34 pct y/y
KIEV, Oct 4 (Reuters) - Ukrainian sugar refineries produced 498,000 tonnes of white sugar from sugar beet as of Oct. 3 or 34 percent more than at the same date in 2010, Ukraine's sugar union Ukrtsukor said on Tuesday.
The union said in a report that 71 refineries had received about 5.6 million tonnes of sugar beet and processed 4.2 million tonnes.

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.

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.

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.

Start of Ivorian cocoa season to rival last year
ABIDJAN, Oct 3 (Reuters) - - Ivory Coast's plantations could churn out around 350,000 tonnes of cocoa by the end of November, on a par with the start of last year's record crop, exporters said on Monday.
Soaring output from the world's top grower, which came despite a four-month post-election conflict that claimed over 3,000 lives, has fed a global supply surplus and dented futures prices.

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.

Indonesia cocoa exports fall for 7th month in Sept
JAKARTA, Oct 3 (Reuters) - Cocoa exports from the world's No. 3 producer Indonesia fell more than 60 percent in September, declining for a seventh month in a row, after wet weather earlier in the year damaged the main crop and triggered an outbreak of a deadly fungal disease.
Fewer shipments from Indonesia could take some pressure off New York cocoa futures , which ended the third quarter down 17.7 percent -- its weakest performance in three years -- on concerns about the health of the global economy.

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.

Brent slips below $101 on Greek debt woes,Goldman outlook cut
SINGAPORE, Oct 4 (Reuters) - Brent crude slipped below $101, squeezed by growing fears that a Greek debt default could spread across the banking system and threaten the global economy.  
"I think more people are getting more afraid," said Tony Nunan, a Tokyo-based risk manager at Mitsubishi Corp.

Kazakhstan sees 50 pct oil export growth by 2020
ASTANA, Oct 4 (Reuters) - Kazakhstan, Central Asia's largest oil producer, plans to raise annual crude exports to 110 million tonnes by 2020 from the 72 million tonnes forecast for this year, the country's oil and gas minister said on Tuesday.
Sauat Mynbayev said Kazakhstan's westward crude oil exports via an expanded Caspian Pipeline Consortium (CPC) would almost double by 2020. Shipments to China would also nearly double to 20 million tonnes from the 11 million tonnes forecast this year.

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.

Crude Climbs First Day in Four After Surprise Decrease in U.S. Stockpiles (Source: Bloomberg)
Oil gained for the first day in four in New York after a surprise drop in U.S. crude stockpiles led investors to reduce bets that prices would continue to decline. Futures rose as much as 3.7 percent after falling 8 percent in the past three days. Crude inventories dropped 3.07 million barrels last week, the American Petroleum Institute said yesterday. An Energy Department report today is forecast to show a gain of 1.5 million barrels. Traders holding short positions in oil futures, or bets that prices will fall, must buy back contracts to book profits. “With so many short positions around anything can spark a violent rally,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney. “We’ve seen positions by the more nimble groups taking shorts and it’s those people buying back.”

Copper Rout Unlikely to Halt Chile’s $67 Billion Bet on Mines: Commodities (Source: Bloomberg)
Chile, the world’s biggest copper- producing nation, expects mining companies to maintain their investment plans even after prices slumped by the most in three years and is seeing few signs of weaker Chinese demand. Spending on new or existing mines will reach $67 billion over the next eight years, Mining Minister Hernan de Solminihac said in an interview in London yesterday. Codelco, the state- owned copper company, will account for $20 billion of the total. While there has been “some adjustment” in China’s imports, the change hasn’t been “significant,” the minister said. Copper slumped 33 percent since reaching a record $10,190 a metric ton in February as mounting concern about growth eroded expectations for supply shortages. Goldman Sachs Group Inc., Barclays Capital and Standard Bank Plc cut their forecasts in the past week. Speculators in U.S. futures held their biggest bet on falling prices since July 2009 as of Sept. 20, Commodity Futures Trading Commission data show.

20111005 1115 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures slide near 1 year low. The declines were driven by traders continuing to reduce risk exposure amid uncertain global economies and price pressure from the influx of freshly harvested soy supplies, analysts say. The instability of world financial markets are keeping traders, importers and domestic processors on edge, leaving many on the sidelines awaiting a calmer economic client before taking on risk, says John Kleist, analyst with Private crop forecasters raising their soy production outlooks aided the lower theme. CBOT Nov soy dropped 17 1/2c at $11.60/bushel.

Soybean Meal/Oil (Source: CME)
US soy product futures tumble with soybeans, succumbing to broad based risk reduction by investors. Uncertain world economic outlooks, increased availability of soybeans for crushing and sluggish demand combined to limit buyer's appetite for soymeal and soyoil, analysts say. CBOT Dec soymeal dropped 1.6% to $302.10/short ton, and Dec soyoil slid 2% to 49.00 cents/pound.

Palm Oil Inventories in Malaysia Climb as Production Recovers (Source: Bloomberg)
Palm oil stockpiles in Malaysia, the second-largest grower, probably advanced to 2 million metric tons for the second time this year in September as harvests rebounded and exports dropped, showed a Bloomberg News survey. Inventories climbed 6.4 percent from 1.88 million tons in August, according to the median estimate in a survey of three analysts and two plantation companies this week. Stockpiles were 1.71 million tons a year earlier and exceeded 2 million tons last time in June, according to the Malaysian Palm Oil Board, which is scheduled to publish the official estimates on Oct. 10. Rising reserves may weigh on futures in Malaysia, which have fallen 29 percent from a 35-month high of 3,967 ringgit ($1,239) a ton on Feb. 10, and potentially curb profits at producers including Sime Darby Bhd. (SIME) and PT Astra Agro Lestari. Futures in Kuala Lumpur may trade between 2,800 ringgit and 3,100 ringgit until the middle of November, Dorab Mistry, director at Godrej International Ltd., said Sept. 25.
‘It’s normal for stocks to build above 2 million tons in the last few months of the year, especially as production peaks around October and November,” said Victor Thianpiriya, an agricultural commodity analyst at Australia & New Zealand Banking Group Ltd. “The strength of exports at the moment, given how cheap palm oil is compared to competing oils, is what’s keeping stocks at close to 2 million tons.”
Output probably gained 6 percent to 1.77 million tons in September from a month earlier, while exports dropped 7.1 percent to 1.57 million tons, the survey showed. Shipments fell 6.3 percent to 1.52 million tons in September compared with 1.62 million tons in August, surveyor Intertek said Sept. 30. Palm oil production probably gained 8.8 percent to 13.8 million tons in the nine months through September from a year earlier, according to the survey. Output may increase to 18.3 million tons in 2011 from 17 million tons last year, Choo Yuen May, director-general of the Palm Oil Board, said Aug. 8. Output typically peaks between July and October. December-delivery futures fell 1.2 percent to end at 2,810 ringgit a ton in Kuala Lumpur yesterday, according to Bloomberg data. The most-active contract has slumped 26 percent this year.
“I don’t see why the major import markets wouldn’t continue to keep buying, because previously, every time the prices got down to 3,000 ringgit per ton, you’ve had a big uplift in purchases from China, India and Pakistan,” said ANZ’s Thianpiriya. “I don’t see why the demand would fall away now with prices at 2,800 ringgit, especially given that the discount to competing oils hasn’t changed substantially.” Palm oil’s discount to soybean oil was $211 per ton today. That compares with an average of $164.03 a ton this year, according to data compiled by Bloomberg. It widened to $289.97 on Aug. 31, the most since 2008.

Palm oil touches new one-year low as economic woes grip markets
KUALA LUMPUR, Oct 4 (Reuters) - Malaysian palm oil futures touched a fresh one-year low as investors fled commodity markets on concerns Greece may be unable to avoid a default that could unleash a financial crisis and drag the world into a recession.
"Nothing looks good around the corner from here. For the palm oil planters they are still making a good profit at these levels," said a trader with a foreign commodities brokerage.

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.

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.