Tuesday, October 11, 2011

20111011 1806 FCPO EOD Daily Study.

FCPO closed : 2801, changed : unchanged +8 points, volume : lower.
Bollinger band reading : pullback correction downside biased.
MACD Histrogram : recovering, seller taking profit.
Support : 2800, 2770, 2750, 2720 level.
Resistance : 2850, 2900, 2920, 2950 level.
Comment :
FCPO closed recorded small gain with lower volume traded while last overnight soy oil ended higher and currently easing little lower while crude oil trading lower having pullback correction after recent rallies.
Reuters survey reported India September palm oil imports seen up 8.5%, soy oil imports seen up 65.5% and total vegatable oil imports seen up 6.4% to 870,000 tonnes vs August.
Daily chart formed a down bar candle with lower shadow closed in between lower and middle Bollinger band after market opened higher, swing downwards followed by last hour partial recovery to closed off the low of the day.
Near term chart reading suggesting market is still having pullback correction within a downside biased market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20111011 1720 FKLI EOD Daily Chart Study.

FKLI closed : 1405.5, changed : +2 points, volume : lower.
Bollinger band reading : side way range bound downside biased.
MACD Histrogram : rising, seller closing position while buyer testing market.
Support : 1400, 1395, 1385, 1375 level.
Resistance : 1420, 1425, 1440, 1445 level.
Comment :
FKLI ended little higher with declining volume changed hand doing 6 points discount compare to cash market that closed recorded gains. Overnight U.S. market closed recorded huge gains and Asia markets traded mostly higher while European markets currently trading lower.
Asia markets traded mostly higher after news on Chinese state-run investment arm began accumulating the nation's 4 biggest banks after valuations dropped. European market turned from gains to loss as investor s awaits Slovakia vote on the euro-area bailout fund and news on Europe delays summit as Greek writedowns may top 60%.
Daily chart formed a down doji bar candle closed in between middle and upper Bollinger band level after market opened and traded higher, slide downwards lower tested near support level and rebound slightly upward to closed off the low of the day.
Technical wise, market is likely to trade side way range bound within a downside biased market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

20111010 1655 Regional Markets EOD Daily Chart Study.

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

20111011 1629 Global Market & Commodities Related News.

Asia shares jump after China move, euro firm
SINGAPORE, Oct 11 (Reuters) - Asian shares jumped after China moved to support its stock market by buying shares of major banks, and the euro held the previous session's big gains on hopes that European leaders are finally taking action to protect the continent's lenders.
"I think it is significant that Germany and France came together to show they will not allow big banks to collapse," said Takashi Hiroki, chief strategist at Monex Securities in Tokyo.

European Stocks Decline Before Slovakia Vote (Bloomberg)
European stocks fell as investors awaited a vote in Slovakia on the euro-area bailout fund and the start of the American earnings season. Asian shares advanced while U.S. index futures declined. Antofagasta Plc (ANTO), the copper miner controlled by Chile’s Luksic family, slid 2.6 percent as the base retreated for the first time in five days in London amid muted buying in the Chinese physical market. Porsche SE led automakers lower. The benchmark Stoxx Europe 600 Index lost 0.5 percent to 234.78 at 8:15 a.m. in London. The gauge advanced 1.7 percent yesterday to complete its biggest four-day rally since November 2008 as the leaders of Germany and France gave themselves three weeks to create a plan to recapitalize banks. The measure is 19 percent off this year’s peak on Feb. 17. The MSCI Asia Pacific Index rose 1.8 percent today for the biggest four-day rally since March 2009. Standard & Poor’s 500 Index futures declined 0.3 percent.

Hong Kong Stocks Climb as China Buying Bank Shares Spurs Surge for Lenders (Bloomberg)
Hong Kong’s Hang Seng Index (HSI) rose toward its highest close in almost three weeks led by financial companies after China’s investment arm said it began buying shares in the nation’s four biggest banks. Industrial & Commercial Bank of China (601398) Ltd., the world’s biggest lender by market value, surged 7.7 percent. Jiangxi Copper Co., China’s No. 1 producer of the metal, gained 5.6 percent after commodity prices rose. Esprit Holdings Ltd. (330), a clothier that counts Europe as its biggest market, jumped 12 percent amid growing confidence that euro-area leaders will act to stem the region’s debt crisis. The Hang Seng Index increased 3.1 percent to 18,255.61 as of 1:34 p.m. local time, headed for its highest close since Sept. 21. All but seven stocks gained on the 46-member gauge. The Hang Seng China Enterprises Index of Chinese companies listed in Hong Kong advanced 5.2 percent to 9,327.86.

FOREX-Euro holds onto Monday's huge gains on EU optimism (Bloomberg)
SINGAPORE, Oct 11 (Reuters) - The euro on Tuesday clung to nearly all of the previous day's  huge gains after hopes for a new EU debt plan sparked a correction in a deeply bearish market, though sentiment remains fragile as European leaders have disappointed many times before.
The euro, which on Monday surged 2 percent for its biggest daily percentage gain in 15 months, dipped 0.1 percent to $1.3629  in early Asia trade.

US soy near one-week top; corn, wheat rise on EU hopes
SINGAPORE, Oct 11 (Reuters) - U.S. soy gained more ground, rising almost 1 percent, while corn and wheat firmed for a second straight day as a pledge by European leaders continued to shore up hopes for the resolution of the euro zone debt crisis.
"A part of the action has to do with a correction because the slide in September was quite aggressive and it's a bit of a risk appetite in the market," said Abah Ofon, an analyst with Standard Chartered Bank in Singapore.

Vietnam Coffee-Oct loading seen low, more rain ahead
HANOI, Oct 11 (Reuters) - Coffee exports from Vietnam this month could fall to between 40,000 tonnes and 50,000 tonnes, or 670,000 to 833,000 bags, from 57,300 tonnes loaded in the same month last year, traders said on Tuesday.
The October export volume is an indicator of the size of Vietnam's previous 2010/2011 crop, which traders have estimated at up to 22 million bags, as harvesting has been delayed by rain in the Central Highlands coffee belt.

Brazil soy planting spreads with early rains
SAO PAULO, Oct 10 (Reuters) - Planting has gained early traction across the grain belt in Brazil, the world's No. 2 soybean grower, after weekend rains marked the end of the dry season, crop analysts said on Monday.
The return of disruptive La Nina weather conditions looms, however, which could spell drier weather over Brazil's southern grain growing states, keeping Brazil from matching its record soy output and yields of last season, forecaster Somar said.

Brazil soybean output seen down in 2011/12-attache
Oct 10 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Brazil:
"Post now forecasts soybean production in 2011/12 at 75 million tonnes, a slight decrease from the record 75.3 million tonnes produced in 2010/11. Post forecasts a record 25 million hectares will be planted to soybeans in 2011/12, a 3 percent increase over 2010/11 planted area of 24.2 million hectares.

Ukraine white sugar output at 707,000 T so far
KIEV, Oct 10 (Reuters) - Ukrainian sugar refineries produced 707,000 tonnes of white sugar from sugar beet as of Oct. 10 or 39 percent more than at the same date in 2010, Ukraine's sugar union Ukrtsukor said on Monday.
The union said in a report that more than 70 refineries had received about 7.4 million tonnes of sugar beet and processed 5.8 million tonnes.

I.Coast new cocoa season arrivals up 5.6 pct
ABIDJAN, Oct 10 (Reuters) - Cocoa arrivals at ports in top grower Ivory Coast rose 5.6 percent to reach around 21,000 tonnes by Oct. 9, exporters estimated on Monday, compared with 19,880 tonnes in the same period of the previous season.
Exporters' estimates showed that around 21,000 tonnes of beans were delivered to the West African state's two ports of Abidjan and San Pedro between Oct. 1 and Oct. 9 up from 19,880 tonnes in the same week a year ago.

India's 2012 wheat output seen at record 86 mln T
NEW DELHI, Oct 10 (Reuters) - India expects a record wheat harvest of 86 million tonnes in 2012, the farm secretary said on Monday, raising hopes of exports for a second straight year from the world's second-biggest producer and consumer of the grain after China.
India, which consumes about 76 million tonnes of wheat a year, harvested a record 85.93 million tonnes of the grain in 2011 and allowed exports of 2 million tonnes.

Brent stays near $109 on Europe optimism, Kuwait strike
SINGAPORE, Oct 11 (Reuters) - Brent crude held near $109 on cautious optimism that European banks may avert a financial crisis after leaders vowed to unveil a plan to resolve the region's debt woes while a strike in OPEC member Kuwait threatened exports.
"The market is a little bit optimistic over the European banking issue, but we still need to watch the situation carefully," said Ken Hasegawa, a commodity sales manager at Newedge Japan.

Shanghai copper up as Beijing supports bank shares
SHANGHAI, Oct 11 (Reuters) - Shanghai copper rose 0.7 percent on Tuesday, lifted by gains in Chinese equities after Beijing announced buying of domestic bank shares, although London copper slid on worries about the euro zone.
"Gains in Chinese equities do have some pick-me-up effect on Shanghai base metals, but this is mainly short term," said Jinrui Futures analyst Zhao Kai.  

China resumes talks to buy uranium miner Kalahari
LONDON, Oct 10 (Reuters) - A top Chinese nuclear power generator is back in talks to buy Kalahari Minerals , the biggest shareholder in one of the world's largest uranium projects, as the commodity-hungry country steps up efforts to meet its growing energy needs.
Kalahari confirmed on Monday that discussions had restarted with state-owned China Guangdong Nuclear Power Corp (CGNPC), after a deal earlier this year fell through in the aftermath of the Fukushima disaster in Japan. It gave no detail on price.

Metals price dive brings earnings gloom
NEW YORK, Oct 10 (Reuters) - Global economic concerns have sparked a precipitous drop in metals prices in recent months, which will likely result in dismal quarterly profits for mining companies and steelmakers.
Stagnant economies in developed countries are crimping demand for metals such as aluminum, used in making cars and aircraft, and for copper, used in electrical wiring for new buildings. Steel, too, is seeing weak demand from the construction industry, which accounts for half its business.

METALS - Shanghai copper up as Beijing supports bank shares
SHANGHAI, Oct 11 (Reuters) - Shanghai copper rose 0.7 percent on Tuesday, lifted by gains in Chinese equities after Beijing announced buying of domestic bank shares, although London copper slid on worries about the euro zone.Chinese shares rose nearly 2 percent in early trade on Tuesday, boosted by a unit of the country's sovereign wealth fund increasing its stakes in the "Big Four" lenders in a sign of government support for the languishing stock market.

PRECIOUS - PRECIOUS-Gold extends gains on EU debt hopes
SINGAPORE, Oct 11 (Reuters) - Spot gold prices edged higher on Tuesday, building on a rally of more than 2 percent in the previous session, as optimism on resolving euro zone's debt crisis lifted mood in commodities and equities.
The pledge by Germany and France on Sunday spurred risk appetite, which helped stage the biggest one-day rise in nearly two weeks in U.S. gold futures.

Gold extends gains on EU debt hopes
SINGAPORE, Oct 11 (Reuters) - Spot gold prices edged higher, building on a rally of more than 2 percent in the previous session, as optimism on resolving euro zone's debt crisis lifted mood in commodities and equities.
"As the news revived risk appetite, some money was being moved out of the money market to commodities, including gold," said Hou Xinqiang, an analyst at Jinrui Futures in China.

20111011 1245 Global Market & Commodities Related News.

Asian Stocks Rise After U.S., Europe Shares Jump on Debt Pledge (Bloomberg)
Asian stocks rose, sending a regional index toward its biggest four-day advance since March 2009, after U.S. and European equities jumped in response to a pledge by German and French leaders to stem Europe’s debt crisis. Sony Corp. (6758), Japan’s largest exporter of consumer electronics, jumped 5.2 percent in Tokyo. Rio Tinto Group, the world’s second-biggest mining company by sales, rose 1.8 percent in Sydney. Korea Zinc Co. surged 5.5 percent in Seoul. Cnooc Ltd. (883), China’s No. 1 offshore oil explorer, added 6.4 percent in Hong Kong. Bank of China Ltd. climbed 8.1 percent after China’s state-run investment arm said it began buying shares of the four biggest national banks.
The MSCI Asia Pacific Index gained 2.2 percent to 116.21 as of 11:13 a.m. in Tokyo as commodity prices also advanced after German Chancellor Angela Merkel and French President Nicholas Sarkozy pledged at the weekend to deliver a plan to recapitalize the Europe’s banks and address Greece’s debt crisis by Nov. 3. More than nine stocks rose for each that fell on the gauge.

GLOBAL MARKETS-Stocks, oil, euro surge on German-Franco pledge
NEW YORK, Oct 10 (Reuters) - The euro jumped while world stocks and crude oil rallied for a fourth straight session on Monday following a pledge by Germany and France to unveil new measures to solve the festering European debt crisis.
"For now, the markets are rallying on the belief that there is forward momentum on dealing with the European bank crisis," said Andrew Busch, senior currency strategist at BMO Capital Markets.

China’s Stocks Rally After Sovereign Wealth Unit Buys Shares of Top Banks (Bloomberg)
China’s stocks rose, spurring a rebound for the benchmark index from the lowest level in more than two years, after China’s state-run investment arm said it began buying shares of the nation’s four biggest banks. Industrial & Commercial Bank of China (601398) Ltd. climbed the most in six weeks while China Construction Bank Corp. (939), Agricultural Bank of China Ltd. (601288) and Bank of China Ltd. (3988) jumped at least 2 percent after Central Huijin Investment Ltd. acquired their shares. The stock market pared gains as Yanzhou Coal Mining Co. and its rivals plunged after the government announced higher resource taxes on coking coal. “Central Huijin’s move shows the government’s intention to save the market, which is close to a bottom,” said Yang Delong, a fund manager at China Southern Fund Management Co., which oversees $21 billion. “This will help boost companies with record low valuations such as banks and automakers in the short term.”

COMMODITIES-Oil, gold lead gains cheered by euro zone efforts
NEW YORK, Oct 10 (Reuters) - Commodity markets rallied on Monday, extending their rebound from one-year lows as a promise to resolve the euro zone debt crisis by month's end buoyed riskier assets and caused the dollar to fall.
"The market is likely to remain on tenterhooks for a little while yet as far as Europe is concerned. We are still not out of the woods yet,"

Soybean Slump Ending as Record Global Demand Overwhelms Farms: Commodities (Bloomberg)
The biggest rout in soybean prices in more than two years may be ending as farmers from Iowa to Brazil fail to keep pace with record demand for cooking oil and livestock feed. The U.S., the world’s largest grower and exporter, will harvest 7.3 percent less this year, leading the first decline in global output since 2009, the U.S. Department of Agriculture estimates. Morgan Stanley expects soybeans to average $14.25 a bushel in the 12 months ending Aug. 31, the most ever and 21 percent more than yesterday’s closing price of $11.775. The use of soybeans expanded at almost four times the pace of the world population in the past decade, led by China, government data show. While prices began tumbling last month on investors’ mounting concern that slowing growth will weaken demand for raw materials, global consumption of cooking oils hasn’t fallen during a recession in the past three decades, USDA data show.

Oil up 3 pct on euro zone plan, Kuwait export halt
NEW YORK, Oct 10 (Reuters) - Oil rose nearly 3 percent on Monday, extending gains into a fourth straight session after a strike halted Kuwait's crude exports and France and Germany pledged to come up with a plan to tackle the euro zone crisis.
German Chancellor Angela Merkel and French President Nicolas Sarkozy promised on Sunday to unveil by the end of October a comprehensive new package to resolve the debt crisis, which has dragged on oil and other commodities for months. "There's an assumption there will be some kind of resolve in the euro zone crisis,"

Libya to free up oil sector-deputy minister
TRIPOLI, Oct 10 (Reuters) - Libya's oil sector will be freed up under the new government and companies will have more say over exploration, projects and operations, Libya's deputy oil minister told Reuters on Monday.
"We want to remove restrictions on management to provide more opportunity for development and for young people," Omar Shakmak said in an interview.

China and Russia to hold energy talks while Putin visits
BEIJING/MOSCOW, Oct 10 (Reuters) - China and Russia will discuss an elusive giant gas deal during Prime Minister Vladimir Putin's visit to Beijing, but a Russian official said on Monday that there were no plans to sign an agreement just yet.
Putin's two-day visit from Tuesday will be his first foreign trip since revealing plans to reclaim Russia's presidency. He could seek to narrow price disagreements that have prevented Russia from signing a 30-year deal to supply China with up to 68 billion cubic metres of gas per year.  

POLL-US crude inventories seen up as imports rebound
Oct 10 (Reuters) - U.S. commercial crude stockpiles are expected to have risen last week as imports rebounded and refinery runs fell, a preliminary Reuters poll of analysts found on Monday.
The survey of seven analysts projected that crude oil stocks rose 660,000 barrels on average for the week ended Oct. 7, after data from the U.S. Energy Information Administration showed stockpiles off 4.68 million barrels at 336.3 million barrels in the previous week.

Libya to free up oil sector-deputy minister
TRIPOLI, Oct 10 (Reuters) - Libya's oil sector will be freed up under the new government and companies will have more say over exploration, projects and operations, Libya's deputy oil minister told Reuters on Monday.
"We want to remove restrictions on management to provide more opportunity for development and for young people," Omar Shakmak said in an interview.

NYMEX-Natural gas mostly ends higher as shorts cover
NEW YORK, Oct 10 (Reuters) - U.S. natural gas futures, backed by short-covering after last week's 5 percent slide, mostly ended higher on Monday but mild weather forecasts and concerns about growing supplies continued to limit the upside.
"Gas was oversold last week, so we probably saw some short-covering,"

EURO COAL-Prices inch up, track wider commodities
LONDON, Oct 10 (Reuters) - Prompt physical coal prices inched up by around by around 25-50 U.S. cents a tonne on Monday, taking their lead from gains on oil and wider commodities markets.
"Oil is up quite strongly today, and that is certainly helping things, and commodities are up in general so it has taken coal with it," a European trader said.

Gold Extends Biggest Advance in a Month as Debt Optimism Helps Buoy Euro (Bloomberg)
Gold extended its biggest advance in a month as optimism that policy makers will resolve Europe’s debt crisis bolstered the euro, boosting the appeal of the metal denominated in U.S. currency. Bullion for immediate delivery climbed as much as 0.5 percent to $1,684.63 an ounce, the highest level since Sept. 23, before trading at $1,681.38 at 12:11 p.m. in Singapore. The metal jumped 2.4 percent yesterday, the most since Sept. 8. Futures for December increased 0.7 percent to $1,682.70. “Gold rose on U.S. dollar weakness,” Lachlan Shaw, an analyst at Commonwealth Bank of Australia, wrote in an e-mail today. Markets are rallying “on better EU sentiment,” he wrote.

20111011 1012 Global Economic Related News.

China: Central Huijin begins boosting stakes in China’s biggest banks
China’s state-run Central Huijin Investment Ltd began buying shares in the nation’s four biggest banks after valuations dropped below levels reached during the global financial crisis. Central Huijin started acquiring stock in Industrial & Commercial Bank of China Ltd, China Construction Bank Corp, Agricultural Bank of China Ltd and Bank of China Ltd yesterday, according to a statement on its website. The fund will continue with “related market operations,” it said, without providing details on how much it will invest and whether it will buy the shares in Hong Kong or Shanghai. “The move is a gesture to demonstrate support,” Ivan Li, deputy head of research at Kim Eng Securities Hong Kong Ltd, said by telephone yesterday. (Bloomberg)

China: Rate swaps show bets monetary policy to be eased: China credit
Chinese banks’ cost of fixing interest rates for a year fell to an eight-week low as signs of cooling economic growth fan speculation that the central bank will start relaxing monetary policy in the next few months. The one-year swap contract, which exchanges fixed payments for the floating seven-day repurchase rate, has declined seven basis points in October to 3.68%, the lowest level since 15 Aug, according to data compiled by Bloomberg. Similar- maturity contracts in Brazil rose on concern faster inflation will limit the scope for interest-rate cuts, while India’s climbed as the government stepped up borrowing plans. (Bloomberg)

China: Retail sales were "robust" during last week's seven-day national holiday, the Ministry of Commerce said. Spending at shops and restaurants surveyed by the ministry over the so-called Golden Week break jumped 17.5% YoY to CNY 696.2b (USD109b), the ministry said in a statement on its website. (Source: Bloomberg)

E.U: Leaders target bank capital in next 'final' crisis plan. Angela Merkel and Nicolas Sarkozy turned their crisis-fighting focus to banks, promising a recapitalization blueprint this month that will overtake a 12-week-old rescue plan that has yet to be put into place. "We will recapitalize the banks," the French president said in Berlin at a joint briefing with the German chancellor without providing details. "We'll do it in complete agreement with our German friends because the economy needs it, to assure growth and financing." (Source: Bloomberg)

E.U: Investor confidence fell to the lowest in more than two years in October on concern that the region's debt crisis and weaker growth in emerging markets will hurt economic expansion. An index measuring sentiment in the 17-nation euro region declined to minus 18.5 from minus 15.4 in September, the Limburg, Germany-based Sentix research institute said in an emailed statement. A gauge of current business conditions plunged to minus 5.75 from
minus 3.25, while an indicator of expectations dropped to minus 30.5 from minus 26.75. (Source: Bloomberg)

Germany: Exports rose for the first time in three months in August. Exports, adjusted for work days and seasonal changes, surged 3.5% MoM from July, when they dropped 1.2% MoM, the Federal Statistics Office in Wiesbaden said. That's the steepest increase since March. Imports were unchanged from the previous month, when they rose 0.5% MoM. (Source: Bloomberg)

Italy: Industrial output increases in August. Output advanced 4.3% MoM from July, when it dropped a revised 0.3% MoM. Output climbed 4.7% YoY on a workday-adjusted basis. (Source: Bloomberg)

Australia: September job advertisements fell for the fifth time in six months as global financial instability discouraged companies from hiring, a private report showed. Jobs advertised in newspapers and on the Internet dropped 2.1% MoM last month after declining a revised 0.7% MoM in August, according to an Australia & New Zealand Banking Group Ltd. report released in Melbourne. (Source: Bloomberg)  

Sri Lanka: Keeps interest rates on hold to boost economic growth
Sri Lanka’s central bank left interest rates unchanged for a ninth straight month to support growth as the global economy falters. The Central Bank of Sri Lanka retained its reverse repurchase rate at 8.5% and the repurchase rate at 7%, the Colombo-based bank said on its website yesterday. Six of seven economists in a Bloomberg News survey predicted the decision. One expected a reduction of half a percentage point. “Sri Lanka may cut rates going forward as inflation is less of a worry in the country and the main objective is to promote growth,” said Jay Shankar, Mumbai-based chief economist at Religare Capital Markets Ltd.

Russia: Putin courts China as Russia seeks to bridge differences on gas
PM Vladimir Putin may give Asia more weight in Russian foreign policy when he returns to the presidency next year, broadening a relationship with China and trying to bridge differences on gas exports. Putin, who will meet Chinese President Hu Jintao and counterpart Wen Jiabao on a two-day trip to Beijing that starts today, will take full control of foreign policy again after four years marked by improving ties with the US under outgoing President Dmitry Medvedev. The PM, who aims to reclaim the Kremlin next May by swapping jobs with his successor, is seeking to diversify trade with China and navigate a stalemate in talks on natural- gas deliveries to the world’s second-biggest economy. (Bloomberg)

EU: Euro leaders postpone Crisis summit amid Greek writedown fury
European leaders pushed back a debt-crisis summit amid opposition to German Chancellor Angela Merkel’s drive for deeper-than-planned writedowns of Greek bonds. The 18 Oct meeting was postponed to 23 Oct as Europe gropes toward a master plan for dealing with Greece’s oversized debt, insulating the Spanish and Italian markets, and shielding banks from the fallout. Opposition to bigger Greek debt writedowns is coming from the European Central Bank, which is against any backsliding from the 21 July accord on a second Greek bailout, a central bank official said yesterday. (Bloomberg)

UK: BOE’s miles sees ‘Good Reasons’ to be optimistic on QE impact
Bank of England policy maker David Miles said the outlook for the economy has worsened and there are “good reasons” to think that the central bank’s expansion of stimulus will aid the recovery. “Since August, the news on the economic outlook has been overwhelmingly negative,” Miles said in a speech in London late yesterday. “I believe that there are very good reasons for thinking that purchases of government bonds in exchange for money created by the central bank will have an impact on a range of asset prices and will influence the cost and availability of credit to the private sector.” The Bank of England raised the ceiling for bond purchases to GBP275bn (USD431bn) from GBP200bn last week, the biggest expansion since the first round of stimulus in March 2009. (Bloomberg)

US: S&P 500 caps biggest gain since August on Europe support pledge
US stocks advanced, giving the Standard & Poor’s 500 its biggest rally since August, after the leaders of France and Germany pledged a plan to support European banks and stem the region’s debt crisis. The S&P 500 advanced 3.4% to 1,194.89. It had the biggest rally over five days since March 2009, gaining 8.7%. The Dow Jones Industrial Average added 330.06 points, or 3%, to 11,433.18. The Russell 2000 Index of small companies surged 4.4%. (Bloomberg)

20111011 1011 Malaysia Corporate Related News.

SP Setia top brass to continue role
PNB has clarified that the existing SP Setia management team will continue to lead the property outfit even after its recent takeover offer with Tan Sri Liew Kee Sin staying on as its CEO. The statement, coming more than a week after it launched what seems like hostile takeover on 28 Oct, was meant to allay concerns about the “fate and future direction” of SP Setia. (Malaysian Reserve)

Pavilion REIT plans RM800m M’sian IPO
Pavilion REIT, part-owned by the Qatar Investment Authority, plans to sell units on Malaysia’s stock exchange as early as next month through a property trust, said two people with knowledge of the matter. The company, which owns the Pavilion shopping, residential and office project in KL, aims to raise about RM800m, said the people who declined to be identified as the information is private. (Malaysian Reserve)

Bina Puri bags RM20.4m deal for Dengkil housing project
Bina Puri Holdings’ wholly-owned subsidiary, Bina Puri Construction SB, has been awarded a project by Jabatan Perumahan Negara worth RM20.4m. The construction player said the project, for the construction works of a housing project in Dengkil known as Taman Topaz, will commence this month and is expected to be completed in 14 months. (Malaysian Reserve)

Maxis bosses named in CBI graft probe
Maxis Communications has denied “any wrong-doing” following a move by India’s Central Bureau of Investigation (CBI) yesterday in filing what it calls the first information report (FIR) against the group and some of its officials. CBI yesterday filed the FIR, an initial police report, against Maxis owner Tan Sri T Ananda Krishnan and the company’s satellite broadcasting business All Asia Broadcasting Network CEO Augustus Ralph Marshall. (Malaysian Reserve)

Fajarbaru targets RM300m GDV with Puchong project
Construction firm Fajarbaru Builder Group is targeting more than RM300m worth of gross development value (GDV) in its upcoming residential development in Puchong, Selangor. Shareholders had approved the company’s proposed RM40m acquisition of land for the Puchong development project at its EGM in KL yesterday, CEO Datuk Low Keng Kok told reporters after the meeting. (Malaysian Reserve)

MBF denies privatization move
Credit card company MBF Holdings has denied receiving any proposal for privatization by its substantial shareholder Tan Sri Dr Ninian Mogan Lourdenadin. Mogan has also informed the board he has not initiated any move top privatize the company to date. The company is therefore unaware of the reason behind the unusual market activity of its securities, it said in an exchange filing in response to a query by Bursa Malaysia. (Malaysian Reserve)

TSH Resources proposes bonus issue
TSH Resources is proposing a one for one bonus issue, the company said in a statement to the stock exchange. The bonus plan will involve issuing some 416m new TSH shares, the company said. (BT)

Mah Sing: In deal on 3 towers at Mont' Kiara project with China firm. Mah Sing Group Bhd has partnered a Chinese firm to build three towers at its RM408m Icon Residence Mont' Kiara project in Mont' Kiara, Kuala Lumpur. The firm, a diversified group from China, will build the towers in exchange for 96 units from Mah Sing. This arrangement will free up the construction cost for Mah Sing, allowing the group to use its cash flow for other opportunities. (Source: Business Times)

O&G: Gas Malaysia listing gets conditional approval from SC. MMC Corp Bhds proposed listing of its subsidiary Gas Malaysia Bhd (GMB) on Bursa Malaysia's Main Market has been conditionally approved by the Securities Commission. The conditions include execution of new gas supply agreement with Petronas prior to registration and issuance of GMB's listing prospectus, identifying and rectifying petrol stations built on land not designated for petrol station and allocating at least 12.5% of its enlarged issued and paid-up share capital to bumiputra investors. (Source: Bursa Malaysia)

Building material: Vale SA to set up iron ore pellets plant in Lumut. Vale SA will set up an iron ore pellets plant here after its USD1.3b (about RM3.9b) maritime terminal in Teluk Rubiah is completed in the 1H14. The company is expected to invest a total USD5b (RM15b) over the next 10 years to develop the mega distribution centre in Teluk Rubiah, which would cater to its clients in the Asia-Pacific. (Source: The Star)

Port: Penang Port plans new tariffs. Penang Port Sdn Bhd plans to introduce new tariffs in the middle of next year. The proposal to raise port tariffs, comprising largely cargo-handling and ship charges, has been submitted to the regulatory authority, Penang Port Commission (PPC). The tariffs were last revised in 2003 and implemented in 2007, which saw a 30% hike in handling charges for container cargo to the present rate of RM182 for a 20-ft container and RM273 for 40-ft container. (Source: The Star)

20111011 1001 Global Market Related News.

Asia Stocks Rise on Europe Debt Pledge (Source: Bloomberg)
Asian stocks rose, driving a regional benchmark index higher for the fourth straight day, after U.S. and European shares jumped in response to a pledge by German and French leaders to stem Europe’s debt crisis. Rio Tinto Group, the world’s second-largest mining company by sales, rose 1.6 percent in Sydney. Korea Zinc Co. surged 6.5 percent in Seoul. Mitsubishi Corp., which gets 43 percent of its revenue from commodities trading, gained 2.9 percent in Tokyo, while Sony Corp., Japan’s largest exporter of consumer electronics, jumped 5.2 percent. Japanese markets resumed trading today after a public holiday yesterday.
The MSCI Asia Pacific Index gained 1.1 percent to 114.94 as of 9:25 a.m. in Tokyo, led by exporters and mining companies as commodity prices advanced after German Chancellor Angela Merkel and French President Nicholas Sarkozy pledged at the weekend to deliver a plan to recapitalize the Europe’s banks and address Greece’s sovereign-debt crisis by Nov. 3. More than four stocks rose for each that fell on the gauge.

Pimco Sees ‘Cheap’ Emerging-Market Equities (Source: Bloomberg)
Emerging-market stocks are “cheap” and Pacific Investment Management Co. is buying in China after the nation’s shares tumbled this year, said Maria Gordon, an emerging-market equity-fund manager at Pimco. “We are definitely fishing in the more cyclically distressed areas of the market where valuations are very, very cheap,” London-based Gordon said in an interview with Sara Eisen on Bloomberg Television yesterday. “We’re selectively accumulating positions” in China, Gordon said, adding that shares of Hong Kong-based insurer AIA Group Ltd. (1299) are poised for “a lot of capital appreciation.”
The MSCI Emerging Markets Index has tumbled as much as 31 percent from this year’s high, sending its price-to-earnings ratio to 9.4 on Oct. 5, the lowest level since December 2008, according to data compiled by Bloomberg. The Hang Seng China Enterprises Index, a gage of Chinese companies listed in Hong Kong, has slid 38 percent from a 30-month peak in November as tight monetary policy in the biggest emerging economy and Europe’s debt crisis spurred investors to sell riskier securities.

Emerging-Market Stocks Advance as German, French Leaders Pledge Bank Plan (Source: Bloomberg)
Emerging-market stocks rose, with the benchmark index posting the biggest four-day gain in 16 months, after German and French leaders pledged to shield European banks. The MSCI Emerging Markets Index increased 1.6 percent to 898.27 at the close of trading, taking its gains in the past four days to 8.1 percent, the biggest four-day advance since May 31, 2010. Brazil’s Bovespa Index surged 4 percent as commodity prices rose. Mexico’s benchmark rose 1.6 percent. Hungary’s BUX Index jumped 3.2 percent to a one-month high, and the WIG20 Index climbed 3.4 percent after Prime Minister Donald Tusk won Polish general election. India’s Sensex Index climbed 2 percent and South Africa’s benchmark gauge rose 2.1 percent.
German Chancellor Angela Merkel and French President Nicolas Sarkozy will deliver a plan to recapitalize European banks and address the Greek debt crisis by Nov. 3. Belgium will pay 4 billion euros ($5.4 billion) for the local unit of the failing Dexia SA, Belgian Finance Minister Didier Reynders said today. U.S. employers added more workers than expected in September, according to payrolls data on Oct. 7.

U.S. futures signal higher Wall Street opening
LONDON, Oct 10 (Reuters) - U.S. stock index futures pointed to a higher opening for equities on Wall Street  with futures for the S&P 500 , for the Dow Jones  and for the Nasdaq 100   rising 0.9 to 1 percent. U.S. government offices and bond markets are closed for the Columbus Day holiday, although U.S. stock markets will be open.

Euro rises on EU pledge, short-covering
SINGAPORE, Oct 10 (Reuters) - The euro rose buoyed by a flurry of short-covering after leaders of Germany and France promised a new comprehensive plan by the end of the month to recapitalise euro zone banks.    
"The positive response could simply reflect the fact that positioning is now more balanced following earlier risk reduction," Todd Elmer, currency strategist at Citi in Singapore, said in a research note.  

Euro gains on debt promise, stocks flat
LONDON, Oct 10 (Reuters) - The euro rose after German and French leaders promised to announce fresh steps to tackle the euro zone debt crisis by the end of the month, but the lack of details kept government bonds supported and world stocks gave up brief early gains.
"But I do not think it is as jolly as it looks and there is still going to be this uncertainty hanging over the market. Although they are trying to put on a common front, it is very difficult to get deals done."

No U.S. Recession as Forecasts Improve (Source: Bloomberg)
The U.S. has likely dodged a recession for now, even though it’s too early to sound the all- clear for the economy. A string of stronger-than-projected statistics -- capped by the news on Oct. 7 of a 103,000 rise in payrolls last month -- has prompted economists at Goldman Sachs Group Inc. and Macroeconomic Advisers LLC to raise their growth forecasts for third quarter growth to 2.5 percent from about 2 percent. That’s nearly double the second quarter’s 1.3 percent rate and would be the fastest growth in a year. “The U.S. economy doesn’t look like it’s double-dipping at all,” said Allen Sinai, president of Decision Economics Inc. in New York. “But it is a crummy recovery.”

S&P 500 Caps Biggest Gain Since August on Europe Support Pledge (Source: Bloomberg)
U.S. stocks advanced, giving the Standard & Poor’s 500 its biggest rally since August, after the leaders of France and Germany pledged a plan to support European banks and stem the region’s debt crisis. All 10 groups in the S&P 500 advanced. Bank of America Corp. (BAC) and JPMorgan Chase & Co. (JPM) added more than 5.2 percent. Chevron Corp. (CVX) and Alcoa Inc. (AA) climbed at least 3.9 percent. Caterpillar Inc. (CAT) and Boeing Co. (BA) increased more than 3.5 percent, pacing gains in companies most-tied to the economy. Sprint Nextel Corp. (S) tumbled 7.9 percent as at least seven analysts cut their ratings after the carrier’s investor meeting.
The S&P 500 advanced 3.4 percent to 1,194.89 at 4 p.m. New York time. It had the biggest rally over five days since March 2009, gaining 8.7 percent. The Dow Jones Industrial Average added 330.06 points, or 3 percent, to 11,433.18. The Russell 2000 Index of small companies surged 4.4 percent. About 6.9 billion shares changed hands on U.S. exchanges as of 4:27 p.m., the lowest volume since Aug. 29, according to Bloomberg data.

Short Sales Rise the Most Since 2006 (Source: Bloomberg)
Investors are increasing bearish trades around the world by the most in at least five years, convinced the lowest valuations since 2009 will prove no barrier to losses after $11 trillion was erased from equities. Borrowed shares, an indication of short selling, climbed to 11.6 percent of stock last month from 9.5 percent in July, the biggest increase since at least 2006, according to information compiled for Bloomberg by Data Explorers, a London-based research firm. Trades that profit when Chinese equities decline have reached a four-year high and bearish bets in the U.S. are the most since 2009, exchange data show.
Slowing economies are spurring short sellers after indexes in 37 out of 45 major countries tumbled 20 percent, the common definition of a bear market. Bulls say declines have gone too far, with the MSCI All-Country World Index’s valuation at about half the 16-year average, just above the level three years ago, following the collapse of Lehman Brothers Holdings Inc. Losses since May exceed the combined gross domestic product of Brazil, Russia, India and China, data compiled by Bloomberg show.

China Record Boosts Confidence This Is No Bubble: Daniel Arbess (Source: Bloomberg)
As the debtor economies of the developed world sputter, the health of China grows ever-more central to the fate of the global economy. Yet, the debate on China’s prospects remains polarized and often superficial, with commentary either baselessly bullish or derisively bearish. Reality, of course, is usually more nuanced. China’s model is unbalanced and its economy has misallocated capital, but its policy makers are using the country’s plentiful reserves and policy tools to keep inflation under control and growth on a sustainable path. China’s growth will probably slow, as its model evolves from depending on exports and investment to relying on greater consumption, but the economy is unlikely to implode.
The financial crisis in the West marked the end of the export-dependent phase of China’s growth. As the U.S. and Europe deleveraged, China compensated by plugging its export deficit with internal fixed-asset investment, largely in housing, which has represented the majority of the country’s GDP growth since 2008. With its population now about 50 percent urban (the comparable figure for the U.S. is roughly 80 percent), China is still building the infrastructure it needs to keep urbanizing over a million people a month. However, the Chinese can’t rely on investment much longer without running the risk of inflation and a treacherous bubble.

China State Investor Boosts Stakes in Big Banks (Source: Bloomberg)
China’s state-run Central Huijin Investment Ltd. began buying shares in the nation’s four biggest banks after valuations dropped below levels reached during the global financial crisis. Central Huijin started acquiring existing stock in Industrial & Commercial Bank of China (601398) Ltd., China Construction Bank Corp. (939), Agricultural Bank of China Ltd. (3988) and Bank of China Ltd. yesterday, according to a statement on its website. The fund will continue with “related market operations,” it said, without providing details on how much it will invest and whether it will buy the shares in Hong Kong or Shanghai. The MSCI China Financials Index is trading at 6.3 times estimated earnings, below the 6.9 reached during the 2008 crisis, after slumping on speculation defaults will rise as the economy slows. The gauge lost 36 percent this year as China’s property market showed signs of cooling and concern grew that $1.7 trillion of local-government debt will lead to bad loans.

Japan’s Nikkei 225 Heads for Biggest Advance in Two Weeks on Europe Pledge (Source: Bloomberg)
Japanese stocks rose for a third day, with the Nikkei 225 (NKY) Stock Average headed for its biggest gain in two weeks, after German and French leaders pledged to support European banks and stem the region’s debt crisis. Sumitomo Mitsui Financial Group Inc. (8316), Japan’s second- largest publicly traded lender, climbed 2.6 percent. Kyocera Corp. (6971), an electronics maker that gets almost 20 percent of its sales in Europe, gained 2.7 percent. Mitsubishi Corp. (8058), Japan’s biggest commodities trader by revenue, rose 2.9 percent after prices of oil and metals advanced. The Nikkei 225 rose 2 percent to 8,774.51 as of 9:34 a.m. in Tokyo, the biggest gain since Sept. 27. The broader Topix gained 1.8 percent to 754.75, with almost five times as many shares rising as falling. Japan’s Stock markets were closed yesterday for a national holiday.

Thailand Prepares as Floods Threaten Bangkok (Source: Bloomberg)
Thai officials rushed to reinforce barriers and widen canals in Bangkok on concern the nation’s worst floods in more than half a century may spread to the capital later this week. The deluge swept across the country starting in late July, killing 269 people, swamping factories operated by Honda Motor Co., Nikon Corp. and Canon Inc. and damaging more than 10 percent of rice farms in the biggest exporter of the grain. Prime Minister Yingluck Shinawatra opened army camps to help house some of the 2.4 million people displaced by the floods, and asked authorities to accelerate efforts to protect the capital. The finance ministry yesterday cut its forecast for economic growth to 3.7 percent from 4 percent and said the disaster may cause 120 billion baht ($3.9 billion) of damage.

Euro Trades Near Three-Week High on Chinese Bank Buying, European Pledge (Source: Bloomberg)
The euro traded 0.4 percent from its strongest in almost three weeks after a China state-run fund said it’s purchasing shares of the nation’s biggest banks, bolstering Asian stocks and demand for higher-yielding assets. The 17-nation euro maintained yesterday’s advance against the yen which came after Germany and France pledged to deliver a plan to support banks. The U.S. currency traded near one-week low versus the Swiss franc before the Federal Reserve releases minutes of September’s policy meeting when it decided to replace much of the short-term debt it holds with longer-term Treasuries in a bid to reduce borrowing costs. “This is the government of China thinking their own bank stocks are cheap, and that’s going to boost the entire Asia equity market again,” said Kurt Magnus, executive director of currency sales in Sydney at Nomura Holdings Inc., Japan’s biggest brokerage. “You have to be chasing yield now and that will keep currencies like the dollar and yen on the back foot.”

Euro Chiefs Push Back Debt Crisis Summit Amid Tension Over Greek Writedown (Source: Bloomberg)
European leaders pushed back a debt- crisis summit amid opposition to German Chancellor Angela Merkel’s drive for deeper-than-planned writedowns of Greek bonds.  The Oct. 18 meeting was postponed to Oct. 23 as Europe gropes toward a master plan for dealing with Greece’s oversized debt, insulating the Spanish and Italian markets, and shielding banks from the fallout. Europe needs a strategy for shoring up banks before unstitching a July accord to cut Greek bond values by an average of 21 percent, Belgian Prime Minister Yves Leterme said.

ECB Financing to Portuguese Banks Fell to 45.6 Billion Euros in September (Source: Bloomberg)
The European Central Bank’s financing to Portuguese lenders fell in September from the previous month, the first decline in three months, the Bank of Portugal said. ECB financing decreased to 45.6 billion euros ($62 billion) from 46 billion euros in August, the Lisbon-based Bank of Portugal said today on the BPStat portion of its website. ECB financing levels peaked at 49.1 billion euros in August 2010. Portugal in April became the third euro-area country to seek a bailout after Greece and Ireland. It will receive 78 billion euros under the agreement with the International Monetary Fund and the European Union. ECB President Jean-Claude Trichet said on April 7 that the central bank “encouraged” Portugal to seek aid and urged the country’s banks to reduce their reliance on ECB funding.

Trichet Throws Away Script, Reminding American Skeptics Euro Built to Last (Source: Bloomberg)
Jean-Claude Trichet stood on a stage at Washington’s Willard Hotel, leafed through his prepared speech, and cast it aside. The reason for the European Central Bank president’s Sept. 23 ad-libbing: a desire to rebut what he called the “particularly gloomy” economic outlook of the previous panel featuring former U.S. Treasury Secretary Lawrence Summers and Pacific Investment Management Co. Chief Executive Officer Mohamed El-Erian. “The overall picture when you look at the euro area as a whole is very, very different from the perception,” Trichet told the conference organized by the Bretton Woods Committee.

Euro Leaders Target Bank Capital in Crisis Plan (Source: Bloomberg)
Angela Merkel and Nicolas Sarkozy turned their crisis-fighting focus to banks, promising a recapitalization blueprint this month that will overtake a 12- week-old rescue plan that has yet to be put into place. “We will recapitalize the banks,” the French president said in Berlin yesterday at a joint briefing with the German chancellor without providing details. “We’ll do it in complete agreement with our German friends because the economy needs it, to assure growth and financing.” Facing rising pressure to defuse turmoil that’s raged for 19 months and growing concern Greece is headed to a default, Merkel said European leaders will do “everything necessary” to ensure that banks have enough capital. Sarkozy said they would deliver a plan by the Nov. 3 Group of 20 summit.

Stoxx Europe 600 Index Posts Biggest Four-Day Jump Since 2008 on Bank Plan (Source: Bloomberg)
European stocks advanced, with the Stoxx Europe 600 Index posting its biggest four-day rally since November 2008, as the leaders of Germany and France gave themselves three weeks to create a plan to recapitalize banks. BP Plc contributed the most to the gauge’s advance. Premier Oil Plc rose 3.3 percent after HSBC Holdings Plc upgraded its shares. Erste Group Bank AG (EBS) plunged 9.2 percent after saying it will post a full-year loss because of writedowns at its units in Hungary and Romania. Dexia SA (DEXB) dropped 4.7 percent after earlier falling as much as 36 percent when trading in the shares resumed.
The benchmark Stoxx 600 advanced 1.7 percent to 235.94 at the 4:30 p.m. close in London, extending the gauge’s rally over the last four days to 8.5 percent. National benchmark indexes rose in 15 of the 18 western European markets. The U.K.’s FTSE 100 Index gained 1.8 percent. France’s CAC 40 Index climbed 2.1 percent and Germany’s DAX Index jumped 3 percent. All three gauges posted their biggest four-day rallies since 2008.

U.K. Stocks Post Biggest Four-Day Advance Since November 2008 (Source: Bloomberg)
U.K. stocks climbed, as the benchmark FTSE 100 Index (UKX) posted its biggest four-day gain since November 2008, as German and French leaders pledged to create a plan in three weeks to recapitalize banks. Premier Oil Plc (PMO) gained 3.3 percent as the U.K. oil explorer said it began production at its Chim Sao project in Vietnam and after UBS AG, Morgan Stanley and HSBC Holdings Plc upgraded its shares. Burberry Group Plc (BRBY), the U.K.’s largest luxury-goods maker, advanced 1.7 percent. Kazakhmys Plc increased 3.4 percent after Morgan Stanley picked it as a preferred copper miner. The FTSE 100 Index rose 95.60, or 1.8 percent, to 5,399 at the 4:30 p.m. close in London. The gauge surged 9.2 percent in the last four days. The broader FTSE All-Share Index also added 1.8 percent today and Ireland’s ISEQ Index increased 1.1 percent.

Australia Stocks Rise as Commodity Prices Gain on Europe Pledge (Source: Bloomberg)
Australian shares rose, led by commodity producers as oil and metal prices surged after German and French leaders pledged to stem Europe’s sovereign-debt crisis. Japanese stock futures advanced. BHP Billiton Ltd. (BHP), the world’s No. 1 mining company, advanced 1.1 percent in Sydney, while Rio Tinto Group, the second-largest miner by sales, rose 2 percent. American depositary receipts of Mitsubishi Corp., which gets 43 percent of its revenue from commodities trading, rose 1.1 percent from the last closing price in Tokyo. Chinese banks may be active in Hong Kong after state-run Central Huijin Investment Ltd. said it began buying shares in the nation’s four biggest lenders following a drop in valuations below levels reached during the global financial crisis.
Australia’s S&P/ASX 200 Index gained 0.7 percent to 4,232 as of 10:23 a.m. in Sydney. New Zealand’s NZX 50 Index rose 0.6 percent in Wellington. Japanese markets, which were closed for a public holiday yesterday, will resume trading today. Futures on Japan’s Nikkei 225 Stock Average expiring in December closed at 8,790 in Chicago yesterday, compared with 8,590 in Osaka, Japan, on Oct. 7. They were bid in the pre-market at 8,730 in Osaka at 8:05 a.m. local time.

20111011 1000 Global Commodities Related News.

Commodity Shipping Jumps to Highest This Year as Price Rout Spurs Demand (Source: Bloomberg)
The cost of hauling coal, iron ore and grains by sea rose to its highest this year as a five-month rout in raw-material prices spurred demand from consumers seeking to build stockpiles. The Baltic Dry Index, a measure of charter costs for four classes of vessel, gained 1.6 percent to 2,032 points today, according to the London-based Baltic Exchange, which publishes rates for more than 50 maritime routes. The gauge advanced to the highest since December. Daily returns on capesizes, the biggest component of the index, jumped 2.2 percent to $28,483, a sixfold increase from the end of February. The Standard & Poor’s GSCI gauge of 24 commodities tipped into a bear market last month after dropping more than 20 percent, on mounting concern that slowing growth will erode the chances of shortages. The price of iron ore, the biggest commodity carried by ships in the Baltic Dry Index, fell 13 percent since February, based on prices in China, the largest consumer of the raw-material used to make steel.

Corn (Source: CME)
US corn futures finished slightly higher on support from outside markets. Yet, prices trimmed gains after touching an early high of $6.18 1/2 a bushel as external support faded during the session. Rich Nelson of Allendale says the corn market's inability to sustain strong gains shows prices may continue to struggle to advance. Some traders step to sidelines due to Columbus Day holiday and uncertainty about USDA crop reports due Wednesday. CBOT December corn rises 5c to $6.05.

Wheat (Source: CME)
US wheat futures closed up, with MGEX continuing to post the strongest gains as farmers hold tight to supplies. They are not selling spring wheat following the recent harvest due to disappointment over low prices for the good-quality crop. Weakness in the US dollar adds support to the grain markets. Yet, some traders take a step back ahead of USDA crop reports due Wednesday. CBOT December wheat gains 4c to $6.11 1/2 a bushel; KCBT December wheat edges up 1 1/2c to $6.86; MGEX December jumps 14 3/4c to $9.34 1/4.

Rice (Source: CME)
US rice futures close at a three-month low, bucking the firmer trend in commodities and equities. Prices continued to pull back after approaching a three-year high last month. The September rally factored in concerns about crop damage in the US, traders say, noting the harvest is bringing fresh supplies in from the fields. Harvest was already 65% complete a week ago, according to USDA. CBOT November rice drops 11c to $15.51 1/2 per hundredweight.

US soy at 1-week top on Euro zone debt deal hopes
SINGAPORE, Oct 10 (Reuters) - U.S. soybean futures rose to a one-week top, while wheat recovered after five straight weeks of losses on optimism as Europe's two biggest economies, France and Germany, promised a package by month-end to solve the euro zone's debt crisis.
"There is improved risk appetite with efforts being made in Europe to solve the debt crisis and also there was good news from the U.S.," said Ker Chung Yang, a commodities analyst at Phillip Futures in Singapore. "The harvest of corn and soybeans is progressing well which may add some pressure."

Philippines may change 2012 rice imports in Nov
MANILA, Oct 10 (Reuters) - The Philippines could announce any changes to its plans to import up to 500,000 tonnes of rice in 2012 as soon as November, depending on the final report on crop damage from two recent typhoons, Agriculture Secretary Proceso Alcala said on Monday.
The country has no plans of going back to the market before the end of this year to buy rice for 2012's requirements, he told reporters after a meeting of the NFA Council, the government body that approves rice importation.

Kazakh 2011 grain crop seen at 22-23 mln T -AgMin
ASTANA, Oct 10 (Reuters) - Kazakhstan expects a grain crop of 22 million to 23 million tonnes by clean weight this year, Agriculture Minister Asylzhan Mamytbekov said on Monday, which would set a post-Soviet record for the Central Asian country.
"We are forecasting a grain harvest of 22 million to 23 million tonnes by clean weight," Mamytbekov told a government meeting. The ministry said on Friday that harvesting was complete on 90 percent of the sown area.

Canada says law to end grain monopoly coming soon
WINNIPEG, Manitoba - Oct 7 (Reuters) - Canada's Conservative government will pass legislation "very soon" to end the Canadian Wheat Board's monopoly on marketing western wheat and barley for milling or export, Prime Minister Stephen Harper said on Friday, strongly warning the board to get out of the way.
Harper, in Regina, Saskatchewan for the announcement for construction of Western Canada's first major durum-processing plant in years, said his government will introduce legislation shortly after next week's House of Commons break and pass it soon after. The monopoly would end as of Aug. 1, 2012.

Argentine rains aid some wheat battered by drought
BUENOS AIRES, Oct 7 (Reuters) - Heavy rains throughout Argentina's main agricultural area on Friday will speed corn sowing and bring relief to wheat fields, although some wheat plants have been irreparably damaged by drought, experts said.
A lack of precipitation last month delayed corn planting and battered wheat crops in Argentina. The South American grains powerhouse is a leading wheat exporter and the world's No. 2 corn supplier.

Slight drop seen in US corn crop; more stocks
CHICAGO, Oct 7 (Reuters) - The size of the U.S. corn crop should be down less than 1 percent from last month as a drop in harvested acreage will largely be countered by better yields, analysts polled by Reuters said ahead of a government report.
The U.S. Department of Agriculture's supply-demand report on Oct. 12 is likely to peg this year's U.S. corn crop at 12.471 billion bushels on a yield of 148.7 bushels per acre (bpa), according a Reuters survey of 27 analysts.

Kansas wheat acres seen rising despite drought
CHICAGO, Oct 7 (Reuters) - Wheat planting in Kansas this year may rise 1 to 3 percent from a year ago despite more than half of the top U.S. winter wheat state being under a severe drought, the head of a Kansas wheat group said on Friday.
Disappointing corn yields this year, especially in bone-dry southern areas of the state, may have some producers resisting the urge to set aside acres for corn planting next spring and they may instead revert back to wheat, Justin Gilpin, chief executive of the Kansas Wheat Commission, told the Reuters Global Ags Forum.

Cargill 1Q Income Sinks On Volatile Markets (Source: CME)
Cargill Inc. reported a 66% slide in first-quarter profit as volatile markets limited opportunities for the world's largest agricultural commodity trader, though revenue rose by a third. The U.S. conglomerate, whose activities range from grain handling and storage to meat packing and energy trading, said four of its five business units reported lower earnings compared with a year ago as it reported its second straight quarter of decline. Privately-held Cargill said it was focused on regaining momentum in earnings after reporting a record full-year profit for fiscal 2011. Listed rivals including Archer Daniels Midland Co. (ADM) and Bunge Ltd. (BG) seemed unaffected by Cargill's caution, with their stock caught in the broader bounce. "It was a tough quarter," Cargill Chief Executive Greg Page said in a statement. "With results down from recent levels, we're focused on regaining our earnings momentum."
The company, which posted record earnings in the fiscal year ended May 31, also saw earnings decline in the fourth quarter by 7%. Commodity markets have swung wildly in recent months as global economic uncertainty and currency fluctuations have prompted investors to move money in and out of commodities. This "risk, on, risk off" dynamic prompted a "disciplined approach to risk-taking," the company said in a release. During Cargill's first-quarter, which ended Aug. 31, spot-month Chicago Board of Trade corn futures soared to a record high of $7.99 3/4 per bushel, plunged to $6.15 and then rebounded to as high as $7.65 before the quarter closed. They have since plummeted again, falling below $6.
The suburban Minneapolis-based company's earnings were also hit by acquisition-related expenses and costs stemming from U.S. flooding, which increased freight costs and required it to take steps to protect the supply chain. Flooding throughout the northern Plains, particularly along the Missouri River, was a problem throughout the summer. For the quarter ended Aug. 31, Cargill, whose diverse businesses range from grain merchandising to meat processing to energy trading, posted a profit of $236 million, down from $693 million a year earlier. Revenue rose 34% to $34.6 billion. The year-ago results didn't include an additional $190 million in earnings from its majority investment in fertilizer producer Mosaic Co. (MOS), which the company sold in a deal completed in May.
Cargill, like other U.S. agricultural exporters, has benefited from rising food prices and the expanding middle class in emerging economies such as China and India. Its agriculture services segment, which includes grain handling and storage, reported increased earnings in the quarter. But earnings fell in the grain origination and processing segment and its animal protein business. The company's food ingredients segment "nearly matched" a record performance last year, the company said. Cargill doesn't disclose earnings results within each segment. The company has emphasized that it has a strong balance sheet following the sale of the Mosaic stake, which was worth about $20 billion. Cargill recently made a series of acquisitions across Asia, North and South America, culminating in one of its largest ever takeovers--the EUR1.5 billion purchase of Dutch animal feed maker Provimi Group.
The company invested more than $3 billion in acquisitions and expansions in the prior fiscal year, a record for the company.

US Corn-Harvest Outlook Stabilizes (Source: CME)
Federal forecasters are expected to keep their projection for the U.S. corn harvest nearly unchanged after cutting it for two straight months due to damage from hot, dry weather. The U.S. Department of Agriculture in its monthly crop report will forecast the corn harvest at 12.492 billion bushels, down 0.05% from its September estimate, according to 23 analysts surveyed by Dow Jones Newswires. Estimates ranged from 12.342 billion bushels to 12.69 billion bushels. If the average prediction of analysts is correct, the crop will be just 0.4% larger than last year's harvest. The department is scheduled to release the monthly report at 8:30 a.m. EDT Wednesday (1230 GMT). The USDA also is expected to raise its estimate for inventories as of Aug. 31, 2012, when the crop year ends. Analysts on average predict supplies at 795 million bushels, up 18.3% from the USDA's September estimate. Estimates ranged from 646 million to 989 million bushels.
The jump in expected inventories would be driven by sizable supplies left over from the last harvest. The USDA surprised traders two weeks ago by estimating farmers and grain elevators had more corn than expected in storage before the latest harvest began at the beginning of September. Grain users are paying close attention to production and inventories after the most actively traded December corn contract set a new high in late August as analysts slashed their output forecasts. Prices have since pulled back 22% on jitters about the global economy and concerns the earlier supply cuts were too severe. The contract traded around $6.05 a bushel on the Chicago Board of Trade. The USDA is expected to forecast the corn yield at 148.9 bushels an acre, up 0.5% from its September estimate, according to analysts surveyed by Dow Jones Newswires. Estimates ranged from 147.2 bushels to 150.9 bushels an acre.
The ongoing corn harvest has uncovered yields that were better than previously expected, said Rich Nelson, director of research for Allendale, a commodities brokerage firm in Illinois. Harvest is thought to be about one-third complete. "It's very clear that corn and certainly soybean yields are a little better than expected," Nelson said. Traders also will be looking to see whether the USDA trims its estimate for how many acres will be harvested. They expect more farmers than usual may give up on land they planted because of damage from summer heat and from flooding in the northern Plains and along the Mississippi and Missouri rivers. The department in September estimated 84.4 million acres will be harvested, but Nelson estimated that number could drop by 500,000 acres. Other analysts projected deeper cuts, with the decline in acres offsetting their forecasts for larger-than-expected yields.

China Wheat Affected As Farmers Harvest Corn (Source: CME)
Wheat prices in China's major producing areas rose in the two weeks to Monday, as wheat sales slowed while farmers were busy with the corn harvest, forcing many flour mills to raise purchase prices. In Zhoukou, central China's Henan province, wheat prices rose 2% from two weeks earlier to CNY2,060 a metric ton. In Hengshui, Hebei province, prices rose 1% to CNY2,120/ton. Traders appear to have lost some interest in the wheat market and are shifting to more profitable corn, analysts said. Corn prices have increased around 30% in the last 12 months due to tight supply and strong demand, but have started to fall due to a record harvest, while the wheat prices have risen only 4%, government data showed. At the end of September, the National Development and Reform Commission raised the minimum purchase price of 2012 harvest wheat by 7-10% from a year earlier to CNY2,040 a metric ton, to encourage production.
Market participants expected the increase, as wheat planting costs have increased more than 15% this year due to sharply rising labor costs, fertilizer and diesel prices, they said. The higher minimum won't have a significant impact on wheat prices, since it is in line with market expectations, the Zhengzhou Grain Wholesale Market said. But farmers will be more reluctant to sell their inventories, as they expect higher prices in the coming months, traders said. Farmers are still holding about 30-40% of wheat output.

India Sees 2011-12 Wheat Output At 86 Mln Tons (Source: CME)
India's wheat output in the current crop year is expected to be a record 86 million metric tons, Farm Secretary P.K. Basu said. "If there is no terminal heat or rust problem, there is no reason why we can't achieve a record production," Basu told reporters. India achieved an all-time high wheat production of 85.93 million tons in the last crop year ended June 30. Wheat is sown during October-November and harvested from March-April. Cotton exports in 2011-12 are likely to top last year's level of 7.0 million bales because of higher production, Basu said.

Flooding Thai Hits Rice, Rubber Exports (Source: CME)
Widespread flooding that has hit inland transportation in Thailand has slowed or delayed the shipment of several thousand tons of rice and natural rubber, two key agricultural exports from the country, industry participants said. With rains expected to continue, the situation is expected to worsen in the next two weeks before flood waters start receding, they said. Some shipments are delayed because roads are cut off and trucks can't move rice from warehouses to ports, said Korbsook Iamsuri, president of the Thai Rice Exporters Association. The waterways used to transport grain to ships have also become unusable in many cases because of higher-than-normal tides which reduce headroom under bridges, she said. Heavy and widespread rainfall affected natural rubber production in northern and north-eastern Thailand, delaying shipments of raw material from these areas, said a senior executive of major rubber producer Thai Hua. The northern region accounts for upto 15% of Thai rubber output.
If flooding spreads to the southern parts of the country later this month, as some have predicted, the total area affected could rise to 70%, said Pongsak Kerdvongbundit, managing director of Von Bundit Ltd., Thailand's largest manufacturer of natural rubber. He said prolonged heavy rains in northern and central Thailand over the last month and an active La Nina weather phenomenon that usually causes flooding in parts of Asia-Pacific point to serious risk of further flooding that could hit Bangkok and Laem Chabang ports in the near future. Thailand usually exports more than 200,000 tons natural rubber a month but that was expected to fall to 195,000 tons in October according to the Association of Natural Rubber Producing Countries. Fears of a global economic slowdown and slow demand during China's week-long holidays were cited as reasons for the expected drop in exports. If flooding hits exports in a major way, this number could be much lower, traders said.
With export numbers expected to fall, the limited supply may push up prices again, said Pongsak. The benchmark March natural rubber futures contract on the Tokyo Commodity Exchange settled 2.6% higher Friday at Y316.1 a kilogram and most traders expect prices to remain well above Y300/kg this month. The impact of flooding has been felt more by the rice producers, said Avtar Sandu, manager for Asian commodities at Phillip Futures Ltd. Several rice traders said their warehouses have been hit by floodwater, making it difficult to estimate the overall damage immediately. Thai rice millers are estimated to hold at least 2.0 million tons of rice from the previous crop. Thailand exported an average 1.0 million tons rice each month in the first half of 2011 but monthly shipments are likely to drop to 700,000 tons to 800,000 tons in the next few months due to high domestic prices and delayed shipments.

Sugar, coffee rise, eyes on debt promise
LONDON, Oct 10 (Reuters) - ICE sugar, coffee and cocoa futures advanced in early trade, alongside gains in other commodities, buoyed by plans by the German and French leaders to tackle the euro zone debt crisis.
Raw sugar futures rose, largely tracking gains in other commodity markets, supported by tight supplies of Brazilian raw sugar, although expectations of big northern hemisphere crops will limit gains.

Rain delays Vietnam's coffee maturing, harvesting
HANOI, Oct 10 (Reuters) - Recent rains in Vietnam's Central Highlands coffee belt has delayed cherries from maturing and discouraged farmers' drying, dashing market expectation of the early arrival of fresh beans, traders said on Monday.
Traders fear the rains could overstay late this month, disrupting harvesting in the world's second-largest coffee producing nation after Brazil, given forecasts of late ending of the rainy season and more storms.

Brazil Sept green coffee exports down 15 pct on yr
BRASILIA, Oct 7 (Reuters) - Brazil exported 2.56 million 60-kg bags of green coffee in September, down from the 2.99 million bags shipped in the same month a year ago, the Council of Green Coffee Exporters, Cecafe, said on Friday.
Brazil's 2011 smaller off-year harvest is now finished and the world's top coffee producer will be running down stocks from that crop until next year's expected larger on-year harvest starts in May.

Mexico see less sugar exports next season-cane union
MEXICO CITY, Oct 7 (Reuters) - Mexico's cane workers union said on Friday the country's sugar exports will fall 30 percent next season from a record high this year after bad weather hit crops, affecting trade to the United States.
Mexico ships most of its sugar to its northern neighbor under a free trade deal and this year will only export around 1 million tonnes, Carlos Blackaller, the head of the national cane workers union told Reuters in an interview.

Uganda Sept coffee exports rise 50 pct yr/yr
KAMPALA, Oct 7 (Reuters) - Uganda exported 340,378 bags of coffee weighing 60-kg each in September, up from 169,728 bags in the same month last year, a source at the Uganda Coffee Development Authority (UCDA) said on Friday.
The rise was due to good rains and to exporters clearing warehouses of old stock to make room for the new crop.

Russia may export 200,000 T sugar in 2011/12-minister
MOSCOW, Oct 7 (Reuters) - Russia may export up to 200,000 tonnes of white beet sugar between July 1, 2011 and June 30, 2012, Agriculture Minister Yelena Skrynnik said on Friday.
"Exports have already reached 50,000 tonnes. The export forecast is up to 200,000 tonnes," she said in a statement.

Ivorian record cocoa crop yields 1.48 mln T
ABIDJAN, Oct 7 (Reuters) - Plantations in top grower Ivory Coast supplied a record 1,477,855 tonnes of cocoa to the West African nation's ports during the 2010-11 season that just ended, up from 1,242,293 tonnes the previous season, according to data from the Bourse du Cafe et Cacao (BCC) obtained by Reuters on Friday.
The performance comes despite a post-election conflict in Ivory Coast that killed thousands of people and temporarily halted exports, and adds to a banner West African crop bolstered by ideal growing conditions.

US coal consumption down 13 pct last week - Genscape
Oct 7 (Reuters) - U.S. coal consumption fell 13 percent last week and was down 7 percent from the same week a year ago, according to power industry data monitor Genscape.
Coal use swings up and down seasonally, and varies from week to week and region to region, depending on electricity demand to run air-conditioners or power heaters.

EURO COAL - Prices weaken slightly, banks sell swaps
LONDON, Oct 7 (Reuters) - Prompt physical coal prices weakened slightly by around 25-50 U.S. cents a tonne on Friday and look set for a continued slow drift lower, traders and utilities said.
Coal prices have been largely disconnected from fundamentals for many months - the lack of buying interest from end-users in Europe and India ought to be reflected in lower prices, major coal exporters and end-users said.

Italy 2011 biodiesel output seen down 18 pct-industry
MILAN, Oct 7 (Reuters) - Biodiesel output in Italy, a major producer in the European Union, is expected to fall some 18 percent to about 600,000 tonnes this year hit by surging inflows of cheaper imports, a senior industry official said on Friday.
Italian biodiesel makers, who use mostly imported raw materials including palm oil and rapeseed, have been hit hard in the past couple of years by cheap imports which sometimes cost less than the raw materials, industry experts have said.

Brent firms on euro debt steps, U.S. data
LONDON, Oct 10 (Reuters) - Brent crude futures gained ground  after France and Germany said they would come up with a plan to contain the euro zone crisis, but details will not emerge until the end of the month.
"It remains to be seen how markets react to this latest weekend pronouncement, as at some point, words will need to be replaced by concrete action," MF Global analysts wrote in a note on Monday.

Saudi keeps Nov crude supply to Asia at full volume
SINGAPORE, Oct 10 (Reuters) - Saudi Arabia, the world's top crude exporter, will supply full contracted volumes of crude oil in November to at least four Asian term buyers, steady with October, industry sources familiar with the matter said on Monday.
The steady supply comes as the OPEC kingpin raised the official selling price (OSP) for at least two grades to record highs after a strong trading month for November cargoes.

Shell begins partial restart of Singapore refinery
SINGAPORE, Oct 10 (Reuters) - Royal Dutch Shell Plc  is restarting the largest crude distillation unit at its Singapore refinery less than two weeks after the plant was shut because of a fire, three industry sources with direct knowledge said on Monday.
The drive to partially restart the 210,000-barrels per day (bpd) CDU, one of three at Shell's largest plant capable of processing 500,000 bpd of crude, is due to strong margins for base oils and lubricants. It will also yield light distillates, sufficient to keep its chemical complex running at reduced rates, they said.

Oil Trades Near Two-Week High on European Debt Pledge, U.S. Growth Outlook (Source: Bloomberg)
Oil traded near the highest price in more than two weeks in New York as investors speculated Europe will contain its debt crisis and a recession will be avoided in the U.S., the world’s biggest crude-consuming nation. Futures were little changed after advancing for a fourth day yesterday in the longest winning streak since August. Stocks, commodities and the euro rallied after the leaders of France and Germany pledged to deliver a plan to stem the debt crisis, while reports this week may show U.S. retail sales rose the most in six months in September. Some oil exports from Kuwait may be blocked by a strike, a union official said. “Momentum-based selling appears to be slowing for commodities, with crude oil taking the lead,” Mark Pervan, Melbourne-based head of commodity research at Australia & New Zealand Banking Group Ltd., said in a note today. “Crude benchmarks jumped in the hopes that there is enough political intent in Europe to resolve the debt crisis. Supply side factors supported prices.”

Most Oil Tankers Idled Since ’80s Still Won’t Buoy Charter Rates: Freight (Source: Bloomberg)
Owners of supertankers, losing money for a sixth consecutive quarter, will probably idle the most ships in more than two decades as they contend with a glut that drove charter rates to the lowest in at least 14 years. The combination of too many ships and slowing demand growth for oil means that about 6 percent of the fleet will be anchored in a year from almost none now, according to the median in a Bloomberg survey of eight brokers and analysts. That may not be enough to end the slump. Forward freight agreements, traded by brokers and used to bet on transport costs, anticipate rates no higher than $13,819 a day through 2013.
Frontline Ltd., the biggest operator of the vessels, says it needs $29,800 to break even. The Hamilton, Bermuda-based company will report its biggest annual loss in 12 years in 2011, analysts’ estimates compiled by Bloomberg show. While owners can cut operating costs to as little as $2,000 a day from $12,000 by anchoring ships, it also means no income, said Andreas Sohmen- Pao, chief executive officer of the oil and gas shipping unit of BW Group Ltd., which is idling three vessels.

Iron Ore-Shanghai rebar falls after China holiday
SINGAPORE, Oct 10 (Reuters) - Shanghai steel futures dropped half a percent in cautious trading on Monday as Chinese investors returned after a week-long holiday uncertain whether demand would pick up strongly.
That suggests the prices of iron ore may dip further this week with Chinese mills seeing no need to stock up on the steel raw material, although continuously tight supplies out of No. 3 supplier India should keep losses in check.

China daily crude steel output dips 2.3 pct in mid-Sept
SHANGHAI, Oct 10 (Reuters) - China's daily crude steel output fell 2.3 percent to 1.919 million tonnes in the second ten days of September from the preceding ten days, data from the China Iron & Steel Association showed.
China's medium- and large-sized steel mills produced an average daily 1.630 million tonnes of crude steel in the same period, down 2.3 percent from early September.

20111011 0959 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures ended higher, driven by broader-based commodity buying on easing global economic fears. Signs of progress in euro-zone debt crisis triggered selling in US dollar and, in turn, attracted buyers to USD-denominated commodities, analysts say. USD's slide took outside pressure off soybeans, opening the door for prices to consolidate after setting new autumn lows last week, says John Kleist, ebottrading.com senior analyst. Traders actively covered some recently sold positions heading toward Wednesday's government crop report, but farmer and commercial selling emerging on the rally capped the day's advances, Kleist adds. CBOT Nov soy end up 19 1/4c or 1.4% at $11.77 1/2/bushel.

Soybean Meal/Oil (Source: CME)
Soy product futures closed higher, fueled by a broader based commodity rally and spillover support from higher soybean prices. Soymeal and soyoil were also supported by optimistic outlooks for demand emerging after recent price breaks, analysts say. CBOT Dec soymeal ended up $4.20 higher at $308.50/short ton, and Dec soyoil was up 0.79c at 50.11 cents/pound.

US Soy Production Seen Up On Harvest Results (Source: CME)
Favorable yield results from the 2011 U.S. soybean harvest have most analysts surveyed by Dow Jones Newswires anticipating a modest increase on Wednesday in the U.S. Department of Agriculture's 2011 soybean crop projection. USDA is scheduled to release its latest forecast for production, inventories and demand on Wednesday at 8:30 a.m. EDT (1230 GMT). Most analysts look for yields to be increased in the report, but uncertainty has been raised about the potential for lost acres, as USDA incorporates reductions in the number of acres affected by flooding or drought reported by the USDA's Farm Service Agency. In recent weeks, several private firms have released crop estimates that were above the USDA's September forecast.
"Despite concerns over finishing weather in many areas of the Midwest, soybean yields have generally exceeded expectations, as a result, we have increased our national bean yield 1.2 bushels per acre from our September estimate," analysts at the Linn Group in Chicago wrote in a pre-report market letter. For October, the USDA will forecast the soybean harvest at 3.094 billion bushels, up 0.3% from its estimate a month ago, according to the average prediction of 23 analysts surveyed by Dow Jones Newswires. Estimates ranged from 3.050 billion to 3.162 billion bushels. The survey predicts the USDA will forecast the average yield at 42.0 bushels an acre, 0.4% above last month's estimate. Estimates ranged from 41.0 bushels to 42.9 bushels an acre.
There is still some uncertainty surrounding soybean yields, as generally favorable yield reports from harvests could by offset by a reduction in yields from fields that were nipped by frost in the northern Midwest, said Don Roose, president Iowa-based brokerage U.S. Commodities. Meanwhile, the government's outlook on the balance between supply and demand is expected to experience some adjustments in relation to the change in 2011-12 production and beginning stocks. "If U.S. output rises just 22 million bushels, limited adjustments in bean's 2011/12 balance sheet are likely," Jerry Gidel, analyst with North America Risk Management Services, said. Domestically, more dramatic changes in U.S. livestock numbers are needed for soybeans' crush level to change much at this time, and the current strong protein demand from Asia and particularly China isn't likely to abate, so not making further cuts in U.S. exports until South America's prospects are better known seems a more prudent approach, he added.
As for the end of the crop year, the average of 20 analysts' estimates pegged inventories as of Aug. 31, 2012 at 181 million bushels, up from the September forecast of 165 million bushels. The estimates ranged from 153 million to 255 million bushels, reflecting uncertainty about 2011 production. In the Sept. 30 USDA Quarterly Stocks report, the government reported 2010-11 ending stocks at 215 million bushels, down 10 million bushels from its estimate on Sept. 12. On the world balance sheet, analysts do not anticipate any changes to Brazil or Argentina's crop projections at this time, but modest reduction in China output is possible.

Palm rises on export data, economic outlook
JAKARTA, Oct 10 (Reuters) - Malaysian palm oil rose almost 2 percent, with prices supported by export data in second largest producer Malaysia and hopes that Europe's debt crisis will be resolved soon, but gains are expected to be capped by rising inventories.
"Looks like the downward trend may want to continue," said a Kula Lumpur-based trader. "Trading was rather cautious ahead of the MPOB."

China projected to import 14.2 mln T soy in 4Q -CNGOIC
BEIJING, Oct 10 (Reuters) - China will likely import a total of 14.2 million tonnes of soybeans in the last quarter, the China National Grain and Oils Information Center said in its daily report on Monday.
If the projection is confirmed, that would be a 3.0 percent fall from 14.64 million tonnes it imported in the same period last year.

Rains spread into Brazil's main soy belt - Somar
SAO PAULO, Oct 7 (Reuters) - Heavy rain is expected in Brazil's main southern soybean producing states over the weekend, and important center-west states will get widespread  rainfall later next week, local forecasters Somar said on Friday.
Planting has started in the early-planting center-west states despite the absence of widespread rains. Growers in isolated areas of the No.1 soy producing state of Mato Grosso in the region have seen sufficient showers to begin planting.

India could burn fingers with aid to domestic palm refiners
KUALA LUMPUR/NEW DELHI, Oct 7 (Reuters) - India's plan to hike a domestic levy on refined palm oil, designed to protect its refiners from cheaper exports by top palm oil producer Indonesia, will backfire in the absence of  rival suppliers to meet the appetite of the south Asian nation.  
The world's top edible oil buyer could end up spending more on Indonesian crude palm oil , which has risen as high as $84 over benchmark Malaysian futures  after Indonesia raised taxes on the crude in the middle of September.

U.S. soy stocks bolstered by weak exports
CHICAGO, Oct 7 (Reuters) - U.S. soybean stocks are expected to rise 11 percent from a month ago due to high prices denting demand, but a government report next week is likely to keep its estimate of yield unchanged, analysts polled by Reuters said.
Global soybeans stocks are also expected to rise, but by less than 1 percent, the analysts said, ahead of the U.S. Department of Agriculture's supply-demand report on Wednesday.