Thursday, November 3, 2011

20111103 1816 FCPO EOD Daily Chart Study.

FCPO closed : 2976, changed : +18 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : turned upward, buyer in control.
Support : 2970, 2950, 2920, 2900 level.
Resistance : 3020, 3050, 3070, 3100 level.
Comment :
FCPO closed recorded gain with slower volume traded while overnight soy oil closed recorded marginal gain and currently trading firmer while crude oil price trading range bound between gains and losses.
Weaker US Dollar resulted broad commodities to trade higher. As for FCPO, price closed higher may probably due to fears of heavy rains may cause flood near plantion estate.
Daily chart formed an up bar candle positioned nearer to upper Bollinger band level after market opened lower, traded side way range bound before climb upward into positive zone to closed near the high of the day.
Chart reading revised to suggesting an upside biased market development possibly testing previous 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.

20111103 1736 FKLI EOD Daily Chart Study.


FKLI closed : 1455.5, changed : -11.5 points, volume : higher.
Bollinger band reading : pullback correction upside biased.
MACD Histrogram : weakening, buyer taking profit and reducing position.
Support : 1445, 1440, 1435, 1425 level.
Resistance : 1458, 1470, 1485, 1500, 1515  level.
Comment :
FKLI closed recorded loss with increasing volume exchanged doing 6.5 points discount compare to cash market that also closed lower. Overnight U.S. markets closed rebounded higher and today Asia markets traded mostly lower while European markets currently in negative territory.
Overnight U.S. market soar higher after Federal Reserve chairman statement says it may act to safeguard recovery but Asia markets closed lower and European market dropping as Euro zone leaders halted aid payments to Greece before its referendum on the region’s bailout plan.
Daily chart formed a down doji bar candle with lower shadow closed right at middle Bollinger band level after market opened lower, dive lower tested support level and recovered upwards salvaged partial of intraday losses to closed off the low of the day.
chart reading still suggesting a pullback correction phase within an upside biased market development having consolidation.
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.

20111103 1714 Global Market & Commodities Related News.

Stocks, euro, oil fall; spooked investors shun risk
SINGAPORE, Nov 3 (Reuters) - Asian shares, the euro, commodities and the Australian dollar all fell on Thursday as fears that Europe's debt crisis could unleash financial chaos prompted investors to shed riskier assets in favour of the relative safety of the dollar.
"It's clearly a worse situation as it is putting other euro zone members in a corner," said Jeremy Friesen, a commodity strategist at Societe Generale in Hong Kong.

FOREX-Euro slips, dogged by worries about Greece
SINGAPORE, Nov 3 (Reuters) - The euro slipped back close to a three-week low on Thursday, hurt by jitters over Greece's plan for a referendum on the euro zone debt deal, with market players seeing the risk of more downside in the next couple of months.
The euro retreated as attention shifted back to Greece after the U.S. Federal Reserve offered no new stimulus on Wednesday, saying it was mulling the possibility of buying more mortgage debt to spur a struggling recovery.

US soy rises on wet harvest weather; corn dips
SINGAPORE, Nov 3 (Reuters) - Chicago soybean futures rose around half a percent, supported by forecasts of wet weather in parts of the U.S. Midwest which is expected slow the last leg of harvest.
"The thing about corn is that it feels like the worst is over as far as the yield estimates are concerned," said Brett Cooper, a senior markets manager at INTL FCStone Australia.

India open to rice sale to Indonesia, seeks palm oil duty cut
NEW DELHI, Nov 2 (Reuters) - India is willing to sell 500,000 tonnes of rice to Indonesia but also wants the Southeast Asian country to cut its export tax on crude palm oil which has threatened the domestic refining industry.  
"My ministry has no objections in exporting 500,000 tonnes of rice to Indonesia from government stocks," Food Minister K.V. Thomas said after meeting Indonesian officials here just a month after trade ministers discussed the issues in Jakarta.

Nicaragua hopes for record 2011/12 sugar harvest
MANAGUA, Nov 2 (Reuters) - Nicaragua expects to produce 604,602 tonnes of sugar in the 2011/12 harvest, 18.5 percent more than the previous cycle and the highest output in the country's history, the head of the National Sugar Producer's Committee said on Wednesday.
Mario Amador, the committee chief, told Reuters that the estimated record was due to an expansion of cultivation areas of sugar cane, by about 5,000 hectares, and better performance in plantations and sugar mills.

Ivorian govt signs off on cocoa reform plan
ABIDJAN, Nov 2 (Reuters) - Ivory Coast's government has signed off on the country's cocoa reform plan, whose core aim is to guarantee hundreds of thousands of smallholders in the world's top grower a minimum selling price by effectively ending a decade of liberalisation.
With the adoption of the plan, the industry's four main regulatory bodies will be dissolved and replaced by a single organisation to oversee the industry, "as soon as possible", a government spokesman said on Wednesday.
 
India willing to give Indonesia 500,000 T rice from govt stocks
NEW DELHI, Nov 2 (Reuters) - India is willing to give 500,000 tonnes of rice to Indonesia from government stocks, Food Minister K.V. Thomas said on Wednesday after talks between the two countries here.
He added that India was seeking a cut in Indonesia's crude palm oil export tax, which the South East Asian country hiked in an effort to support its domestic refining industry.

Brent slips below $109 on Europe woes, Fed outlook
SINGAPORE, Nov 3 (Reuters) - Brent crude futures slipped below $109, sliding for a fifth straight session in its longest losing streak since June, on concerns global oil demand will slide as the economic outlook for Europe and the United States worsens.
"Crude prices are going to be capped by the uncertainty in the global economy, driven by the euro zone crisis which I don't think will be resolved by this year," said Jeremy Friesen, a commodity strategist at Societe Generale.

Indonesia tin smelters to set up pricing contracts
JAKARTA, Nov 2 (Reuters) - A group of Indonesian tin smelters has agreed to set up pricing contracts in competition with the London Metal Exchange, the governor of Bangka Belitung Province said on Wednesday, adding more companies were committing to maintain an export stoppage.
Last week, a group of fifteen smelters on the main tin-producing island of Bangka agreed to maintain a self-imposed export stoppage until the end of December or until benchmark prices rise above $25,000 a tonne.

Private investors buy minor metals as safe havens
LONDON, Nov 1 (Reuters) - Growing numbers of investors are turning to the minor metals market as a safe haven for their pension funds as gold and silver prices soar to record highs.
"We've always had a certain amount of interest from the rich in the Anglo-American sector. About four years ago it started to pick up within people with average wealth," said Gunther Maassen of German trading firm Haines & Maassen.

S.Korea seeks 6,000 T aluminium ingot for Jan
SEOUL, Nov 2 (Reuters) - South Korea is seeking 6,000 tonnes of high-grade primary aluminium ingot registered on the London Metal Exchange (LME) via tenders to close at 2 p.m. (0500 GMT) on Nov. 9, the state-run Public Procurement Service said.

Freeport Indonesia ore output 5 pct of capacity-govt
JAKARTA, Nov 3 (Reuters) - Freeport McMoRan Copper & Gold's  massive Grasberg mine in Indonesia is producing copper, gold and silver ore at 5 percent of its full capacity, a senior official at the energy and mineral resources ministry said on Thursday.
"The mill to process the ore has stopped running because of the damage in the pipeline ... So Freeport's ore production is only about 5 percent of its full capacity now," Thamrin Sihite, the director general of mineral resources, told reporters.

Indonesia tin smelters to set up pricing contracts
JAKARTA, Nov 2 (Reuters) - A group of Indonesian tin smelters has agreed to set up pricing contracts in competition with the London Metal Exchange, the governor of Bangka Belitung Province said on Wednesday, adding more companies were committing to maintain an export stoppage.
Last week, a group of fifteen smelters on the main tin-producing island of Bangka agreed to maintain a self-imposed export stoppage until the end of December or until benchmark prices rise above $25,000 a tonne.

Chinese players less upbeat on copper in 2012
JINAN, China, Nov 3 (Reuters) - Demand growth in China, the world's top copper consumer, is likely to slow to 5 to 6 percent next year on a weak world economy and tight domestic monetary policy, traders and analysts at an industry conference said.
Euro zone debt problems could affect global economic growth, while Beijing will not significantly relax credit to property projects, the participants at the two-day conference in the city of Jinan, Shandong province, said.

China Jan-Sept refined copper demand up 8 percent
JINAN, China, Nov 2 (Reuters) - China's refined copper consumption for the first nine months of this year rose 8 percent to 5.46 million tonnes, and will hit 7 million tonnes for the full year, according to the China Nonferrous Metals Industry Association.
Duan Shaofu, copper section chief of the government-backed producer body, did not give a comparative figure for last year, but state-backed research group Antaike has previously put 2010 demand at 6.8 million tonnes.

Gold to hit $2,000/oz in next 12-18 months: Randgold CEO
A slow recovery in global markets means the price of gold may not hit $2,000/oz for another 12-18 months, says Randgold Resources Chief Executive Mark Bristow.

Risk rally won't end gold bull run, says ASR chartist
The recent rally in risk assets will not knock gold off its rising trend according to gold sentiment indexes, says Absolute Strategy Research Technical Strategist David McBain.

METALS-Copper drops on EU debt worries, firm dollar
SHANGHAI, Nov 3 (Reuters) - London copper dropped on Thursday, rolling back from an $8,000 resistance level, as worries about the euro zone's debt crisis and a firm dollar weighed on prices.
But comments by the U.S. Federal Reserve that it was mulling the possibility of buying more mortgage debt to spur a struggling recovery are expected to keep a floor under prices.

Copper drops on EU debt worries, firm dollar
SHANGHAI, Nov 3 (Reuters) - London copper dropped, rolling back from an $8,000 resistance level, as worries about the euro zone's debt crisis and a firm dollar weighed on prices.
"The Greek drama is keeping investors cautious. There are very few fresh new positions today. We are seeing mostly longs closing out positions," said CIFCO Futures analyst Zhou Jie.

Antaike sees 2012 China refined copper demand up 6.4 percent
JINAN, China, Nov 2 (Reuters) - China's consumption of refined copper is expected to grow 6.4 percent in 2012, a slow down from this year's 8.5 percent growth rate, a senior analyst at state-backed research firm Antaike said on Wednesday.
Real consumption of refined copper may rise to 7.85 million tonnes in 2012, from 7.38 million tonnes expected in this year, Yang Changhua said.

PRECIOUS-Gold falls, Europe uncertainty weighs ahead of G20
SINGAPORE, Nov 3 (Reuters) - Spot gold softened on Thursday, tracking the downbeat sentiment in riskier assets as investors remained worried about the euro zone's debt crisis ahead of a Group of 20 summit.
Gold has been range-bound in the past week or so, with the threat of a potentially disastrous Greek default burnishing gold's safe-haven appeal and fears of a liquidity crunch in case of a default keeping gains in check.

20111103 1711 Regional Markets EOD Daily Chart Study.

 DJIA chart reading :  pullback correction upside biased.
 Hang Seng chart reading :  pullback correction upside biased.
KLCI chart reading : pullback correction upside biased.

20111103 1123 Global Market & Commodities Related News.

Asian Stocks Drop as Europe Stops Greek Aid on Vote, Fed Cuts U.S. Outlook
Asian stocks declined as European leaders withheld aid to Greece after the country said it will hold a referendum on a bailout package and the U.S. Federal Reserve cut its forecast for the world’s biggest economy. HSBC Holdings Plc (HSBA), Europe’s biggest lender, dropped 2.7 percent in Hong Kong on speculation a default by Greece will threaten bank earnings. United Overseas Bank Ltd. (UOB), Singapore’s No. 3 lender by market value, sank 3.5 percent after posting profit that missed estimates. LG Electronics Inc. (066570), the world’s third-biggest mobile phone maker that gets about 30 percent of sales from North America, slumped 9.4 percent amid speculation the company may sell new shares.
The MSCI Asia Pacific Excluding Japan Index slipped 1.8 percent to 410.72 as of 10:09 a.m. in Hong Kong. The measure gained 13 percent last month, the most since May 2009, as Europe appeared to be closing in on a deal to contain its debt crisis, reports showed the U.S. economy grew faster and China hinted at easier monetary policy.

GLOBAL MARKETS-Stocks, euro, oil fall as investors shun risk
SINGAPORE, Nov 3 (Reuters) - Asian shares, the euro and the Australian dollar all fell on Thursday as fears that Europe's debt crisis could unleash financial chaos prompted investors to continue shedding riskier assets in favour of the relative safety of the dollar.
U.S. stock futures also eased, stepping back from a Wall Street rebound on Wednesday, as leaders of the world's biggest economies began arriving in France for a G20 summit set to be dominated by concerns that Greece is on course for default.

COMMODITIES-Slight rise after 3-day loss, Greece still focus
NEW YORK, Nov 2 (Reuters) - Commodities rose after encouraging preliminary U.S. jobs data for October on Wednesday, breaking a three-day decline, but markets ended sharply off the day's highs on caution over Greek turmoil.
"The Fed did not give any indication about QE3, which the market was on the lookout for," said John Kilduff, partner at Again Capital LLC, an energy hedge fund in New York.

COLUMN-If everybody likes oil below $100, why is it higher?: Clyde Russell
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
SINGAPORE, Nov 2 (Reuters) - Producers and consumers are happy with Asian crude oil prices in a range between $80 and $100 a barrel is the consensus emerging from the Singapore International Energy Week.
Sounds great, small problem is that the regional benchmarks are already north of $100 a barrel and show little sign of dropping, even in the face of confusion in Europe and a slowing global economy.

LNG spot trade to thrive despite tighter supplies
SINGAPORE, Nov 2 (Reuters) - More flexible liquefied natural gas (LNG) supply contracts that allow for unsold cargoes to be diverted to the spot market will help boost trading of the fuel, said the chief executive of Singapore's upcoming LNG terminal.
Singapore is building a 6 million tonnes per year (tpy) regasification facility primarily to meet growing domestic demand for power, but also as a platform to facilitate spot trading as more LNG traders set up operations in the city-state.

Oil mixed weighing Europe woes, Fed outlook
NEW YORK, Nov 2 (Reuters) - Brent crude fell and U.S. crude edged up in volatile trading on Wednesday, as investors weighed concerns about the euro zone debt crisis against the potential for further monetary easing in the United States.
"The Fed did not give any indication about QE3, which the market was on the lookout for," said John Kilduff, a partner at hedge fund Again Capital LLC in New York.

Natural gas ends lower, mild weather weighs
NEW YORK, Nov 2 (Reuters) - U.S. natural gas futures ended lower for a second straight session on Wednesday, pressured by moderating weather forecasts, growing supplies and economic concerns.
"All of the normal natural gas drivers remain biased to the bearish side," said Energy Management Institute's Dominick Chirichella.

Euro Coal-Prices dip 50 cents as stocks, euro rise
LONDON, Nov 2 (Reuters) - European prompt physical coal prices dipped by a marginal 50 U.S. cents, or 0.4 percent, on Wednesday as equities and the euro rose, after having fallen by over $3 earlier this week in line with oil and copper.
"It's been extremely quiet -- few serious bids or offers and very little change to prices," one utility trader said.

20111103 1117 Local & Global Economic Related News.

Overseas investors bought  Malaysian stocks in Oct after two months of  outflows, according to data compiled by the Kuala Lumpur stock exchange.  Foreign funds bought RM1.5bn of Malaysian shares last month (vs. outflows of  RM300m in Sep and outflows of RM3.8bn in Aug). (BT)

Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah  said Malaysia will definitely achieve a  5-6%  GDP growth  this  year as the government is prepared to face any uncertainties from Western  financial markets. "We have already tabled the 2012 Budget and we are now  taking measures so that the economic slowdown in the US and Europe will not  affect us,” he said.  The government had allocated RM6bn in stimulus spending via Private  Financing Initiative in 2012 to help prosper the country's economy  against the backdrop of an uncertain global environment.  When asked on concerns raised by several quarters that the government  was at risk of a "debt-fear" due to spending outstripping revenue, Husni  said the RM407bn national debt, that grew 12.3% last year, was still  manageable as it had yet to breach critical threshold (national debt to  GDP of 55% and revenue to debt service ratio of 15%).  With regards to external loans, it must not be above RM35bn. Currently,  it is well below that and the debt servicing ratio for external loan is  roughly 2%. (Bernama)

The government has some RM40bn of untapped cash reserves which it could  use to sustain Malaysia’s economic growth in the event of a global economic  slowdown,  Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah said. The reserves included the government’s trust  fund of about RM30bn, another contingency fund of some RM4bn, and  Kumpulan Wang Amanah Negara which have around RM5bn, he noted. The  government had asked the country’s accountant general to review the usage of  its RM30bn trust fund, of which a portion was “dormant”. (Financial Daily)

It cost the government RM12.2bn to provide  healthcare and medical  treatment for Malaysians from Jan till Sep this year, the Dewan Rakyat was  told yesterday. Health Minister Datuk Seri Liow Tiong Lai said the amount was  98% of the overall expenditure of his ministry  for the period, which totalled  RM12.44bn.  Liow said last year, the ministry spent RM14.45bn or 98% of the  RM14.76bn allocated to it for the purpose.  He added that revenue collected by the ministry last year amounted to  RM311.2m and that from Jan till Sep this year stood at RM238.5m.  (Bernama)

The Employees Provident Fund Board (EPF) clarified that all the 13 loans  worth RM55.1bn it granted without Government Guarantee were made in  accordance with the procedures set. The loans were given out within the  provision of the EPF Act 1991 which gives EPF the power to provide loans to the  Federal and State governments and corporate entities subject to approval from  the EPF Investment Panel and Finance Ministry.  The 13 loans consisted of direct lending to the government (39% of total  loans), government-backed securities (48%) and AAA-rated papers  (13%) that did not require government guarantee. All of the loans under RM55.1bn have demonstrated perfect record in  interest servicing and loan repayment, it said. (Bernama)

The government plans to  dispose several  government-owned land in the  country to the private sector to raise more funds for economic development,  Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah said.  The land parcels measuring between  three and seven acres each, would easily  raise a total of RM1.2bn to the government projected revenue for 2012. They  include land along the River of Life project and a piece of land owned by the  government through the Malaysian Rubber Board. (Bernama)

China: China inflation cooling leaves room for Wen to loosen credit

China’s inflation is showing signs of easing further, giving Premier Wen Jiabao more room to loosen fiscal and monetary policies as the economy cools and Europe’s sovereign-debt crisis threatens exports. China’s central bank has paused in raising interest rates and bank reserve requirements as officials assess the risk that Group of 20 leaders meeting in Cannes, France, this week will fail to contain the crisis. Inflation may moderate to below 5% in November and December, compared with a three-year high of 6.5% in July. [Bloomberg]

The Commerce Ministry predicts that  export growth in  Thailand will fall  below 10% in 2012 because of the severe flooding. The Bank of Thailand has reduced its export-growth forecast for 2011 from 22.4% to about 20%. (The  Nation)

The  Thai government has approved the provision of  soft loans totaling  THB210bn for  flood-hit businesses. These will be provided by both  state-owned and commercial banks with a fixed interest rate of 3% per annum  for three years. (The Nation)

The  Vietnamese consumer confidence index remained unchanged in  3Q11 at 97 pts from 2Q11 due to concerns over the economic volatility. (Nielsen)

India's M3 money supply rose an 14.4% yoy as of 21 Oct, from 16.2% a  fortnight ago, the central bank said. (Reuters)

India: India’s biggest lender to get USD609mil capital infusion
State Bank of India, the nation’s largest lender, will get a capital infusion of more than INR30bn (USD609m) from the government to bolster capital as concern that loans may sour mounts. The funds are a part of the INR140bn that the government plans to invest in state-run lenders, a finance ministry official said in New Delhi, declining to be identified citing government policy. The money is in addition to a INR60bn investment planned for the year to 31 March and will ensure the banks have a Tier 1 capital ratio of more than 8%, said the official. [Bloomberg]

Indonesia’s Danareksa Consumer Confidence Survey slipped to 89.6 in  Oct, from 90.5 in Sep. (Bloomberg)

Indonesia’s Consumer Confidence Index rose to 116.2 in Oct from 115.0  in Sep. (Bloomberg)

EU: EU Pushes Papandreou on Greek Euro vote as G-20 leaders meet
European leaders urged Greek Prime Minister George Papandreou to swiftly spell out how he intends to stick to the terms of a bailout plan after he handed voters a veto over the week-old package. Crisis talks were under way in the French resort of Cannes on the eve of a Group of 20 Summit after Papandreou was summoned by European counterparts to explain his call for a referendum that risks delaying aid the country needs to avert default. In Athens, Greek lawmakers debated a confidence motion that could bring down his government. [Bloomberg]

EU: Greece to decide Euro membership in December vote as EU cuts aid
European leaders cut off aid payments to Greece and said a referendum in five weeks will determine whether the debt-strapped nation becomes the first to exit the 17-country euro area. Crisis talks ended in the French resort of Cannes with German Chancellor Angela Merkel and French President Nicolas Sarkozy withholding EUR8bn (USD11bn) of assistance and warning it will surrender all European aid if it votes against a bailout package agreed only last week. [Bloomberg]

Eurozone purchasing managers index fell to 47.1 in Oct, from 48.5 in Sep.  The sub-50 reading means activity has now been shrinking for three months.  (WSJ)

Europe’s bailout fund is delaying a €3bn (US$4.1bn) bond sale after Greek  Prime Minister George Papandreou’s request for a referendum on the rescue  pact for his country roiled markets. The European Financial Stability Facility is  putting off the 10-year issue “due to market conditions,” according to  spokesman Christof Roche. The fund may wait for the outcome of the 3-4 Nov  Group of 20 summit before selling the bonds, according to a person with  knowledge of the matter. (Bloomberg)

US: Bernanke says more stimulus is ‘on the table’ as risks remain

Federal Reserve Chairman Ben S. Bernanke said unemployment is still “far too high” and the Fed may take further steps to boost growth, such as buying mortgage bonds or changing the way it communicates its policy goals to the public. Additional stimulus “remains on the table,” Bernanke said at a press conference in Washington, declining to specify conditions that would prompt a move. “While we still expect that economic activity and labor market conditions will improve gradually over time, the pace of progress is likely to be frustratingly slow.” [Bloomberg]

US: Fed says ‘downside risks’ remain as economic outlook cut
Federal Reserve policy makers said the economy has picked up while “significant downside risks” remain, and they refrained from taking any additional steps to ease monetary policy. Fed officials also lowered their economic-growth projections compared with June and said the unemployment rate will decline at a slower pace.
Policy makers led by Bernanke may be waiting to see if unconventional policy steps from their last two meetings help the expansion gain strength before embarking on new initiatives. [Bloomberg]

US stocks advance as Fed says it may act to safeguard recovery
US stocks advanced, rebounding from a two-day drop in the S&P’s 500 Index, as the Federal Reserve said economic growth strengthened and it is prepared to take action if needed to safeguard the recovery. Gauges of commodity and financial shares had the biggest gains in the S&P 500 among 10 industries, rising at least 2.2%. Bank of America Corp, Chevron Corp. and Alcoa Inc. rallied more than 2.4%. The Dow Jones Industrial Average added 178.08 points, or 1.5%. (Bloomberg)

US auto sales jumped 7.5% in Oct, hitting their second fastest pace of year and  defying the sluggish economy. Auto makers sold 1,021,313 cars and light trucks  in Oct, according to market researcher Autodata Corp. The seasonally adjusted  annualized selling rate in Oct was 13.26m vehicles, Auto data said, the highest  rate since Feb’s 13.29m, and up from the 13.1m level in Sep. (WSJ)

US mortgage applications increased 0.2% from one week earlier, according  to data from  the Mortgage Bankers Association’s (MBA) Survey for the week  ended 28 Oct. The refinance index decreased 0.2% from the previous week. The  seasonally adjusted purchase index increased 1.8% from one week earlier.  (MBA)

US  employers’ announced  job cuts rose  13% yoy to 42,759 in Oct (212% in  Sep), according to  Challenger, Gray & Christmas Inc. Consumer products  companies led the Oct job cuts with 7,169 announced reductions, according to  Challenger. Retail companies followed with 4,264 planned cuts. (Bloomberg)

US private-sector employment increased by 110,000 in Oct (116,000 in Sep)  on a seasonally adjusted basis, according to the latest ADP National  Employment Report released. Economists had expected ADP to report an Oct  increase of 100,000. Service-sector jobs increased by 114,000 last month, and  manufacturing jobs fell by 8,000. (WSJ)

The US Federal Reserve left unchanged its pledge to keep the benchmark  interest rate near zero through at least mid-2013 as long as unemployment  remains high and the inflation outlook stays “subdued.” (Bloomberg)

US Federal Reserve policy makers raised their assessment of the economy while saying “significant downside risks” remain and refrained from taking any  additional steps to ease monetary policy. “Economic growth strengthened somewhat in 3Q, reflecting in part a  reversal of the temporary factors that had weighed on growth earlier in  the year,” the Federal Open Market Committee said.  At the same time, it repeated that “there are significant downside risks  to the economic outlook, including strains in global financial markets.”  (Bloomberg)

20111103 1116 Malaysia Corporate Related News.

Mah Sing explores Thai JV for Icon City mall
Mah Sing is exploring a potential partnership with Thailand’s Central Pattanna Pcl to develop a shopping mall within the former’s Icon City project. Mah Sing said its wholly owned subsidiary, Sierra Peninsular Development SB, yesterday inked a MOU with Central Pattanna to explore a potential JV to develop and manage the shopping mall. (Financial Daily)

Leader’s board accepts buyout offer from H’ng family
The board of Leader Universal has accepted the offer from substantial shareholder HNG Capital SB to acquire the group’s entire business and undertakings including assets and liabilities for RM480.1m. In a filing on Bursa, Leader’s board excluding the interested directors, had decided to accept HNG Capital’s offer subject to the execution of a definitive conditional sale and purchase agreement. (Financial Daily)

Hong Leong Bank offers VSS to workers
Hong Leong Bank has offered its employees a voluntary separation scheme (VSS) as part of its consolidation exercise towards growing its newly enlarged entity, following the recent acquisition of EON Bank group. The scheme is open to all permanent employees of Hong Leong Bank and MIMB Investment Bank, and is offer strictly on a voluntary basis. “The scheme aims to consolidate Hong Leong Bank’s position as a whole financial banking group as the banking industry landscape as evolved and the level of competition is becoming more challenging and intense,” said Hong Leong Bank’s MD Yvonne Chia. (Malaysian Reserve)

Fajarbaru targets RM630m GDV
Fajarbaru Builder Group is targeting a GDV value of RM630m from eight ongoing construction projects. These include the 3 new stations under the LRT Kelana Line and 2 new stations under the Ampang Line, amounting to RM87m and RM63m respectively. The group also recently acquired a contract to construct a medical suite for Gleneagles Hospital in Jalan Ampang for a cost of RM166m, as well as 2 Eastern Corrifor Economic Region (ECER) projects in Kelantan and Pahang. (Malaysian Reserve)

Envair unveils crude oil deal with China firm
Loss-making ACE Market-listed Envair Holding Bhd, in the news for its surprising announcements of ambitious plans, said it plans to sell two million barrels of light crude oil per month to a Chinese company, a deal which works out to a whopping USD184m (RM576m). In a reply to a Bursa Malaysia query, Envair said the figure was subject to variations due to fluctuations in the price of light crude oil per month. The query was part of a string of queries from the exchange on Envair's announcements since 13 Oct that it had wanted to venture into oil and gas business. (StarBiz)

Glenealy will spend RM69m to plant more oil palm in Sarawak, Kalimantan
Glenealy Plantations expects growth in hectarage and output of fresh fruit bunches (FFB) with continued new planting activities in its plantations. Managing director Yaw Chee Ming said the group had allocated RM69m in capital expenditure to carry on with its new planting activities in both Sarawak and Kalimantan, Indonesia. “Our target is to plant 3,000 to 5,000ha a year; it all depends on negotiations with the natives staying on the land. “We may be allocating a piece of land but there are still some natives staying on it. We will plant more if the negotiations are speeded up,” he said. (StarBiz)

Tan Sri Ravindran Menon's Subang Skypark is believed to have received an  offer from the government to undertake a RM1.5bn project to build a railway  line, people familiar with the matter said. The railway line is to help connect the  Keretapi  Tanah Melayu Bhd (KTMB) station in Subang Jaya, Selangor, to the  Skypark Terminal at the Sultan Abdul Aziz Shah Airport. The company has been  lobbying the government to build the railway line for more than five years,  sources said. It is understood that the railway project was recently approved  under the Economic Transformation Programme to improve public  transportation. "This is a Private Financing Initiative where the project will be  funded by Subang Skypark. The project involving 23km may cost between RM1  bn and RM1.5 bn," the source said. (BT)

Megasteel Sdn Bhd is believed to be lobbying for a 15% levy on  steel  imports across the board from non-Asean countries. Industry sources are not  happy with the new proposal, which will tax imports of all steel products even  those not produced by Megasteel. An industry source said that the levy is not in Malaysia’s interests as  many industries use steel; it is used in the automotive industry, in  manufacturing and construction and everyone will lose out if this  proposal materialises.   He pointed out that Megasteel continued to make losses despite the lack  of competition. “Megasteel has not been profitable even though there  has been a 25% levy on hot rolled coils (HRC), the company’s primary  product. Also, Megasteel is essentially the sole HRC producer in  Malaysia. This could be indicative of its uncompetitive cost structure.” “No body wants Megasteel to suffer. We want Malaysia to have its own  steel makers. We just want the industry to be fair. A 15% levy on all steel  imports will cripple the industry. A solution will need to be discussed  across the value chain that can benefit everyone". Unfortunately, it  doesn’t seem like Megasteel is ready to talk”, an industry player added.  (Financial Daily)

CIMB Group Holdings is poised to overtake Malayan Banking as the lead  arranger for Islamic bonds after helping manage Malaysia's second-biggest  offering in 2011.  The lender co-arranged power producer Tenaga Nasional  Bhd's sale of RM4.85 bn of syariah-compliant debt in conjunction with Bank  Islam Malaysia.  That offering took the bank's total to US$4.5bn (RM14bn),  compared with Maybank's US$3.8 bn (RM11.9bn), according to data compiled  by Bloomberg. Sales of Islamic bonds doubled last month as yields at a  seven-week low and the resolution to Europe's debt crisis encouraged borrowers.  (BT)

Proton has proposed to buy an additional 15% equity stake in  Miyazu for  RM4.9m, which will increase its shareholding to 66% from 51% previously. The  acquisition is expected to contribute positively to the group’s earnings in the  long-term. (Malaysian Reserve)

AirAsia Japan will add long-distance flights in 2013 as it seeks to lure  holidaymakers and budget travellers with cheap flights. The airline might offer  services to Thailand, Indonesia and Singapore after introducing wide-body  A330 planes, CEO Kazuyuki Iwakata said. The company will begin short-haul  routes from Tokyo’s Narita airport in August with single-aisle A320s. The new airline intends to lure passengers with fares as much as  two-thirds cheaper than traditional carriers. AirAsia Japan planned to  fly to airports already served by affiliates  as it expanded on long-haul  routes, so that it could cut costs through cooperation in areas such as  procurement. The carrier plans to have a fleet of 30 or more plans in  five years. (Bloomberg)

DRB-Hicom has proposed to establish an Islamic medium-term notes (sukuk)  programme of up to RM1.8bn in nominal value with tenure of 15 years.  Proceeds from the sukuk would be used to finance working capital requirements  and the company’s current and future projects and investments. It will also be  used to refinance borrowings and defray expenses incurred from the issuance.  (Star Biz)

The US$1.4bn five-year contract that SapuraCrest won from Petrobras signals  the arrival of the former as an international player while enabling it to bid for  more contracts from Petrobras in the future. The contract was secured by  SapuraCrest on its own after a highly competitive and technically rigorous open  tender process. With the contract, SapuraCrest's earnings visibility increases  substantially up to FY1/19. Its current outstanding orderbook surges by more  than 50% to about RM12bn, which is the largest in the industry. (Star)

India asked Indonesia to reduce export duty on crude palm oil while agreeing  to export five lakh tonnes of non-basmati rice. To protect its refining industry,  Indonesia had recently raised the export duty on crude palm oil to 16.5 per cent  from 15 per cent and also lowered duty on refined oil to 8 per cent from 15 per  cent ."Sudden hike in export duty of crude palm oil by  Indonesia will badly  affect the Indian industry. So, we have sought  a reduction," Food Minister K V  Thomas told reporters after a meeting with an Indonesian delegation here.  (Bloomberg)

Chinese buyers have canceled or delayed some natural rubber shipments after  prices slumped and demand weakened, according to traders at Okachi & Co.  and Tower Commodities Co.  Prices tumbled 20% in the past three months on  concern the Europe debt crisis may derail the global recovery. Tightened China  liquidity and weak conditions might cause prices to drop further, leading to  more cancellations, said Lizhi Tang, president of the Okachi & Co.’s greater  China region.  The amount “isn’t large” now, he said without elaborating.  (Bloomberg)

City landowners here have finally warmed to MRT Corporation’s solution to  end a property dispute, a move the firm says will help the government avoid  acquisition of prime properties and cut the Klang Valley Mass Rapid Transit  (MRT) project cost by billions of ringgit. MRT Corp CEO Datuk Azhar Abdul  Hamid declared the Jalan Sultan and Jalan Inai row resolved yesterday, after a  majority signed a memorandum pledging to work out the terms of a mutual  agreement. “The support garnered among the Jalan Sultan and Jalan Inai  landowners exemplifies progress in the implementation of the country’s largest  public infrastructure project,” MRT Corp said in a statement issued last night.  (Malaysian Insider)

U Mobile's network suffered a major service disruption just before noon on  Monday for seven hours. Its CEO Dr Kaizad Heerjee assured that plans are in  place to avoid future recurrences. "We acknowledge that U Mobile has let down  our customers as they expect better service from us. We have to redouble our  efforts to rebuild their confidence in U Mobile." To compensate its over 1m users, U Mobile will offer free SMS for a  24-hour period on 10 Nov, 10 Dec and 10 Jan. In addition, data users  will get 500MB monthly free for 3 months starting 10 Nov. There have also been areas of cooperation between  StarHub  and U  Mobile, he said, adding that "we have brought a lot of innovation to the  market place and we are also the only cellco that offers three roaming  service to Singapore. The same goes for StarHub users when they come  here." (StarBiz)

Felda, with two estates in Indonesia, is considering an offer to open estates in  Cambodia. Its Chairman Tan Sri Mohamed Isa Abdul Samad said Felda  management was currently negotiating with the Cambodian authorities  following an offer to open up 160,000 hectares (400,000 acres) in that country.  He said the Federal Land Development Authority has been provided with the  necessary documents, relevant details and study findings of Malaysian  organisations for consideration. "I believe we will study the offer as it is a good  opportunity," he added.  (Bernama)

Faber Group was handed a lifeline last Thursday when it received an interim  extension of its long-running concession on the day before expiration. However,  the short-term extension of only six months, or until a new deal is signed whichever is first, could suggest undercurrents in the industry when it comes to  the awarding of such concessions. Faber is one of the country’s three hospital  support services (HSS) providers, the others being Pantai Medivest and  Radicare. (Financial Daily)

Zelan has been awarded a development contract by the Public Private  Partnership Unit involving the Phase 3 development of the International Islamic  University Malaysia’s centre in Pahang. No amount of contract has been stated  by Zelan. (Malaysian Reserve)

Malaysia has been ranked below the average grade in the Bribery Perception  Index in a survey by Transparency International of 28 countries. Malaysia  scored 7.6, below the average of 7.8 out of a possible 10. In contrast Indonesia  debuted at 7.1 this year for the first time in the survey. Singapore scored 8th  highest at 8.3 with Netherlands and Switzerland at the top spot at 8.8. Russia and China scored the lowest at 6.1 and 6.5 respectively. The survey sampled  3,000 businesses in Malaysia including 148 companies involved in international  trade. (Malaysiakini)  

International Automotive Components Group (IAC), the car-parts maker owned  by billionaire Wilbur Ross, says it is expanding in Asia through joint ventures  with a Malaysian supplier in its home country and in Thailand. IAC will own  60% of a venture in Thailand with  APM Automotive Holdings, while in  Malaysia, IAC will hold a 40% stake, Ross' company said. IAC and APM said  they will design, engineer and manufacture instrument and door panels, floor  consoles, flooring and acoustics, package trays and rocker panels for global  carmakers and domestic companies in the region. (BT)

20111103 1051 Renewable Energy Related News.

LDK Solar building new polysilicon plant
Nov 1 (Reuters) - LDK Solar Co Ltd  on Tuesday broke ground on a new, 30,000 metric ton polysilicon manufacturing facility in China that will sharply increase the company's annual output of the solar industry's key raw material.
In a statement, LDK said the factory would bring its annual polysilicon production capacity to 55,000 MT by the end of 2013. That's up from the annual capacity of 25,000 MT the company will reach in the middle of next year.

Kenya to start work on new geothermal plant
NAIROBI, Nov 1 (Reuters) - Kenya Electricity Generating Company (KenGen) said on Tuesday it will sign a contract next week with a consortium to build its 280 megawatt (MW) Olkaria IV geothermal plant meant to be operational in 2014, as it pushes to diversify its power sources.
At the same time, KenGen Managing director Eddy Njoroge said an extra 202 MW would be injected into the national grid next year from a mix of thermal power, renewable energy and rehabilitation of an existing hydropower dam.

JA Solar to cut spending, output amid subsidy cuts
HONG KONG, Nov 1 (Reuters) - Chinese solar panel maker JA Solar Holdings Co Ltd  will slow spending and cut output as the industry grapples with falling solar prices and subsidy cuts, the company's chief executive said on Tuesday.
The solar industry has suffered through a dismal 2011 as a glut of inventory sent prices of solar panels sharply lower, squeezing profit margins.

More cuts ahead for UK solar as govt funds run out
LONDON, Nov 1 (Reuters) - British solar plant developers can expect to see government subsidies slashed even further than a proposed 50 percent cut, because tariffs still are likely to eat up the 860 million pound  ($1.4 billion) renewable subsidies budget before its planned 2015 end-date.
This week's proposed cut in state aid was the second to hit solar plant installers, manufacturers and developers within 18 months of the support scheme's launch, but it is not likely to be the last.

20111103 1050 Biofuel Related News.

Brazil 2011/12 CS sugar output cut again - Unica
SAO PAULO, Nov 1 (Reuters) - Brazil's main cane-milling association cut its forecast for the current crop again on Tuesday and said next season would show "timid growth" as aging plants and bad weather exact tolls on output.
Sugar production from the main center-south cane region is now forecast at 30.8 million tonnes, down from 31.57 million tonnes projected in August, industry association Unica said in its latest forecast of the 2011/12 crop.

EU biodiesel output hit by high imports -Oil World
HAMBURG, Nov 1 (Reuters) - European Union biodiesel imports are rising sharply and the bloc's own 2011 production of the fuel is likely to fall partly because of heated competition from outside supplies, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
"EU imports of biodiesel have increased sharply so far this year and will probably reach a record 2.52 million tonnes in Jan./Dec. 2011, up 21 percent from last year," Oil World said.

EU ethanol firms demand subsidy inquiry on US fuel-sources
BRUSSELS, Oct 31 (Reuters) - European bioethanol producers have asked EU trade authorities to investigate whether their U.S. rivals are receiving illegal subsidies from Washington and dumping fuel on the EU market, legal and industry sources said on Monday.
The EU could impose tariffs next year on hundreds of millions of litres from the United States if it can prove that U.S. tax credits for U.S. firms that blend ethanol with gasoline are illegal.

Sao Martinho takes stake in Brazil cane mill
RIO DE JANEIRO, Oct 31 (Reuters) - Brazilian sugar and ethanol producer Sao Martinho  said it bought a 32 percent stake in cane mill Santa Cruz Acucar and an 18 percent stake in its agricultural management company Agropequaria Boa Vista for a combined 187.4 million reais ($110 million).
This is that latest in a long series of mergers and acquisitions that has swept through Brazil's cane industry since the financial crisis in 2008 weakened many over-leveraged mills to the point that they became soft takeover targets for deep-pocketed milling groups like Sao Martinho.

Boeing, Embraer enter Brazil jet-biofuel venture
SAO PAULO, Oct 26 (Reuters) - U.S. planemaker Boeing Co  and its Brazilian counterpart Embraer  have joined forces to map out how best to expand the use of biofuels for jet engines from renewable sources such as sugar cane.
With the Sao Paulo State Scientific Research Federation (Fapesp), the two companies signed an agreement on Wednesday to construct a research center in Brazil that will study the infrastructure, transport and global marketing of biokerosene for the industry that has become increasingly sensitive to public attempts to brand it as an agent of global warming.

US ethanol output edges up, highest since June
Oct 26 (Reuters) - U.S. ethanol production rose slightly last week as corn harvest produced fresh supplies of the key ingredient for the fuel on good blender demand.
The Energy Information Administration reported Wednesday that U.S. ethanol production totaled 909,000 barrels per day in the seven days to Oct. 21, up 1,000 barrels per day from the previous week.

20111103 1044 Global Market Related News.

Asian Stocks Drop as Europe Stops Greek Aid on Vote, Fed Cuts U.S. Outlook (Source: Bloomberg)
Asian stocks declined as European leaders withheld aid to Greece after the coutnry said it will hold a referendum on a bailout package and as the U.S. Federal Reserve cut its forecast for the world’s biggest economy. Commonwealth Bank of Australia, the nation’s biggest lender, fell 1.2 percent in Sydney on speculation a default by Greece will threaten bank earnings. Rival Australia & New Zealand Banking Group Ltd. fell 1.3 percent in Sydney after posting earnings that missed estimates. LG Electronics Inc., the world’s third-biggest mobile phone maker that gets about 30 percent of sales from North America, slumped 7.3 percent amid speculation the company may sell new shares. The MSCI Asia Pacific Excluding Japan Index slipped 0.9 percent to 414.49 as of 8:55 a.m. in Hong Kong. The measure gained 13 percent last month, the most since May 2009, as Europe appeared to be closing in on a deal to contain its debt crisis, reports showed the U.S. economy grew faster and China hinted at easier monetary policy.

U.S. Stocks Rise as Federal Reserve Says It May Act to Safeguard Recovery (Source: Bloomberg)
U.S. stocks advanced, rebounding from a two-day drop in the Standard & Poor’s 500 Index, as the Federal Reserve said economic growth strengthened and it is prepared to take action if needed to safeguard the recovery. Gauges of commodity and financial shares had the biggest gains in the S&P 500 among 10 industries, rising at least 2.2 percent. Bank of America Corp. (BAC), Chevron Corp. (CVX) and Alcoa Inc. (AA) rallied more than 2.4 percent. MasterCard Inc. (MA) jumped 7 percent as profit beat analysts’ estimates. MF Global Holdings Ltd. tumbled 79 percent in its first day of over-the-counter trading after the futures brokerage filed for bankruptcy, prompting the New York Stock Exchange to delist the shares. The S&P 500 increased 1.6 percent to 1,237.90 as of 4 p.m. New York time. The benchmark gauge for American equities fell 5.2 percent over the previous two days. The Dow Jones Industrial Average added 178.08 points, or 1.5 percent, to 11,836.04 today.

Euro, Asia Stocks Fall as EE Leaders Withhold Aid (Source: Bloomberg)
The euro weakened to near a three- week low against the dollar and Asia stocks dropped after European leaders cut off aid payments to Greece before a referendum on a bailout agreement. The 17-nation euro dropped 0.5 percent to $1.3676 as of 8:23 a.m. in Hong Kong. New Zealand’s dollar sank 1.2 percent to 78.21 U.S. cents after the nation’s jobless rate unexpectedly increased. The MSCI Asia Pacific excluding Japan Index slid 0.9 percent. Standard & Poor’s 500 Index futures fell 0.9 percent. Oil declined 0.6 percent to $91.96 a barrel in New York. German and French leaders withheld 8 billion euros ($11 billion) and warned Greece will surrender all European aid if it votes against a bailout package agreed only last week. European Central Bank President Mario Draghi will chair a meeting of the bank’s governing council for the first time. Federal Reserve Chairman Ben S. Bernanke said yesterday unemployment is still “far too high” and the Fed may take more steps to boost growth.

European Stocks Rally, Snapping Three Days of Declines; Randgold Advances (Source: Bloomberg)
European stocks rose, snapping the biggest three-day drop in almost two months, as U.S. companies hired more workers than forecast and Federal Reserve policy makers raised their assessment of the economy in a statement at the close of trading. Randgold Resources Ltd. (RRS) surged to a record after forecasting a 22 percent increase in gold output next year. Rio Tinto Group surged 3.8 percent, leading a rally in commodity companies. Lloyds Banking Group Plc (LLOY) slid 4.4 percent as Chief Executive Officer Antonio Horta-Osorio took a leave of absence following medical advice. The Stoxx Europe 600 Index advanced 0.9 percent to 237.22 at the close of trading, after swinging between gains and losses at least 15 times. The gauge had retreated 5.8 percent over the previous three days as Greek Prime Minister George Papandreou called a referendum on the nation’s latest bailout package, spurring concern that a rejection of the measures may push the country into default.

German Stocks Advance; Metro, Hugo Boss Lead Gains in Frankfurt (Source: Bloomberg)
German stocks advanced, with the benchmark DAX Index (DAX) snapping two days of declines, as European leaders prepared to tell Greece there is no alternative to budget cuts imposed in the bailout plan. MAN SE rose 4.9 percent after it reiterated its sales forecast with all its divisions reporting higher third-quarter orders. Metro AG (MEO) added 1.4 percent amid speculation that Germany’s largest retailer may sell its Kaufhof unit. Hugo Boss AG (BOS) gained 1.2 percent as third-quarter net income rose. The DAX advanced 2.3 percent to 5,965.63 at the close in Frankfurt. The gauge has still fallen 21 percent from this year’s high on May 2 amid concern global economic growth is slowing and policy makers are struggling to contain Europe’s debt crisis. The broader HDAX Index (HDAX) climbed 2.1 percent today. The DAX fell 5 percent yesterday after Greece’s government called a referendum on its latest bailout package.

Bernanke: More Stimulus ‘on the Table’ (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke said unemployment is still “far too high” and the Fed may take further steps to boost growth, such as buying mortgage bonds or changing the way it communicates its policy goals to the public. Additional stimulus “remains on the table,” Bernanke said today at a press conference in Washington, declining to specify conditions that would prompt a move. “While we still expect that economic activity and labor market conditions will improve gradually over time, the pace of progress is likely to be frustratingly slow.” Bernanke spoke after the policy-setting Federal Open Market Committee said the economy picked up in third quarter and repeated its statement from September that there are “significant downside risks” to the outlook. Officials kept policy unchanged, saying they would lengthen the maturity of the Fed’s bond portfolio and hold the benchmark interest rate near zero through at least mid-2013 if unemployment remains high and the inflation outlook is “subdued.”

Bernanke Says Mortgage-Backed Securities Purchases Are ‘a Viable Option’ (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke said additional purchases of mortgage-backed securities are a “viable option” if the state of the economy warrants further easing. “The housing sector is a very important sector,” Bernanke said today at a press conference in Washington after a meeting of the Federal Open Market Committee. Adding to mortgage-bond holdings is “certainly something we would consider if conditions” are appropriate. The policy-setting FOMC today said “economic growth strengthened somewhat in the third quarter,” while also saying “significant downside risks” remain to the outlook. Officials left unchanged their plans to lengthen the maturity of the Fed’s bond portfolio and to keep the target federal funds rate near zero through at least mid-2013 as long as unemployment remains high and the inflation outlook remains “subdued.”

Fed Says Economy Has Picked Up While Still Detecting ‘Significant’ Risks (Source: Bloomberg)
Federal Reserve policy makers said the economy has picked up while “significant downside risks” remain, and they refrained from taking any additional steps to ease monetary policy. Fed officials also lowered their economic-growth projections compared with June and said the unemployment rate will decline at a slower pace. Fed Chairman Ben S. Bernanke, in a press briefing, said the pace of improvement is likely to be “frustratingly slow” and that the central bank made no decisions about giving more information on its policies through public communications. Policy makers led by Bernanke may be waiting to see if unconventional policy steps from their last two meetings help the expansion gain strength before embarking on new initiatives. While the economy grew last quarter at the fastest pace in a year, that is still insufficient to push down the unemployment rate, and officials have said the U.S. remains vulnerable to shocks from the European debt crisis.

Fed Cuts Outlook for 2012, Sees 8.6% Jobless (Source: Bloomberg)
Federal Reserve officials lowered their outlook for U.S. economic growth in 2012 and forecast that unemployment will average from 8.5 percent to 8.7 percent in the final three months of next year. The forecasts were released after the Federal Open Market Committee today acknowledged economic growth “strengthened somewhat” in the third quarter while also citing “continuing weakness” in labor markets and “significant downside risks” to the economic outlook. The committee left unchanged its plans to lengthen the maturity of its bond portfolio and maintain its mortgage-backed securities investments, and keep the federal funds rate in a range of zero to 0.25 percent until mid-2013. Chicago Fed President Charles Evans dissented in favor of “additional policy accommodation.”

Fed Officials May Prepare Ground for Further Bond Purchases, Survey Shows (Source: Bloomberg)
Federal Reserve officials are probably engineering a third round of large-scale asset purchases, while they are unlikely to announce a decision today, according to economists in a Bloomberg News survey. Sixty-nine percent of those surveyed say Chairman Ben S. Bernanke will embark on a third round of quantitative easing, or QE3, with a plurality of 36 percent predicting the move in the first quarter of next year, according to the poll of 42 economists from Oct. 26-31. “We are becoming increasingly persuaded that QE3 is coming, this time focused on purchases of mortgage-backed securities,” said Dana Saporta, U.S. economist at Credit Suisse in New York. “The best guess is at this meeting they’ll try to build some consensus around the idea and lay the groundwork for eventual purchases.”

U.S. Companies Add More-Than-Expected 110,000 Workers in October, ADP Says (Source: Bloomberg)
Companies added workers in October, easing concern the job market is stagnating in the third year of the U.S. recovery, according to a private report based on payrolls. The 110,000 increased followed a revised 116,000 gain the prior month, Roseland, New Jersey-based ADP Employer Services said today. The median forecast of economists surveyed by Bloomberg News called for a advance of 100,000. A pickup in private hiring is needed to help reduce unemployment and boost consumer spending, which accounts for about 70 percent of the economy. Businesses added 125,000 jobs in October and the jobless rate was 9.1 percent for a fourth straight month, economists in a Bloomberg survey projected ahead of a Labor Department report Nov. 4.

‘Too Soon’ to Discuss China Buying More EFSF: Zhu (Source: Bloomberg)
It’s “too soon” for China to discuss further bond purchases from Europe’s revamped rescue fund, Vice Finance Minister Zhu Guangyao told reporters in Cannes, France, on the eve of a summit of world leaders. While there are proposals to bolster the European Financial Stability Facility, “there are no concrete plans yet so it’s too early to talk about further investments in these tools,” Zhu said today. Zhu said the rescue fund, already part of China’s portfolio, is an “important tool” to address the sovereign debt crisis. European Union leaders agreed to boost the 440 billion-euro ($605 billion) fund’s firepower to 1 trillion euros last week, as part of a broader crisis-fighting package that aimed to shore up banks and provide new aid to Greece.

Korean Won Slumps, Bonds Advance as Greek Vote Fuels Concern Over Default (Source: Bloomberg)
South Korea’s won fell and bonds advanced for a fourth day on concern next month’s Greek referendum will push the nation to the verge of default, sapping demand for riskier assets. German Chancellor Angela Merkel and French President Nicolas Sarkozy withheld 8 billion euros ($11 billion) of assistance yesterday on the eve of a Group of 20 summit, warning it will surrender all European aid if Greece votes against a bailout package. Federal Reserve Chairman Ben S. Bernanke said the Fed may take further steps to boost growth, after the policy-setting Federal Open Market Committee. “Players are reacting more to uncertainties surrounding Greek referendum than Bernanke’s comments on supporting the economy,” said Ryoo Hyun Jung, chief currency dealer in Seoul at Citibank Inc. “Most of Bernanke’s comments were within expectations, and not enough to stoke risk appetite.”

Greece to Determine Euro Membership in Vote (Source: Bloomberg)
European leaders cut off aid payments to Greece and said a referendum in five weeks will determine whether the debt-strapped nation becomes the first to exit the 17-country euro area. Crisis talks ended in the French resort of Cannes late yesterday with German Chancellor Angela Merkel and French President Nicolas Sarkozy withholding 8 billion euros ($11 billion) of assistance and warning Greece it will surrender all European aid if it votes against a bailout package agreed upon only last week. “The referendum will revolve around nothing less than the question: does Greece want to stay in the euro, yes or no?,” Merkel told reporters. Sarkozy said Prime Minister George Papandreou’s government won’t get a “single cent” of aid if voters reject the plan.

Unemployment in Germany Unexpectedly Increases for First Time in Two Years (Source: Bloomberg)
German unemployment unexpectedly rose for the first time in more than two years in October and manufacturing contracted as pessimism mounted among businesses in Europe’s largest economy. The number of people out of work rose a seasonally adjusted 10,000 to 2.94 million, the Nuremberg-based Federal Labor Agency said today. Economists forecast a decline of 10,000, the median of 31 estimates in a Bloomberg News survey showed. The adjusted jobless rate rose to 7 percent from 6.9 percent. A separate report showed factory output dropped. “It’s too early to call this a trend change in the labor market, but it shows that growth forces are weakening,” Lothar Hessler, an economist at HSBC Trinkaus & Burkhardt AG (TUB) in Dusseldorf, said in an interview. “The dynamism of the economic upswing is lessening more than thought.”

EU Pushes Papandreou on Greek Euro Vote as G-20 Leaders Meet (Source: Bloomberg)
European leaders urged Greek Prime Minister George Papandreou to swiftly spell out how he intends to stick to the terms of a bailout plan after he handed voters a veto over the week-old package. Crisis talks were under way in the French resort of Cannes on the eve of a Group of 20 summit after Papandreou was summoned by European counterparts to explain his call for a referendum that risks delaying aid the country needs to avert default. In Athens, Greek lawmakers debated a confidence motion that could bring down his government. The stewards of the euro “won’t accept” a break from last week’s agreement, Luxembourg Prime Minister Jean-Claude Juncker told reporters in Cannes. German Chancellor Angela Merkel said “we have to get to the point where we know exactly what comes next.”

Greece Will Be Told No Alternative to Budget Cuts as EU Races to Save Pact (Source: Bloomberg)
European leaders are set to tell Greek Prime Minister George Papandreou he has no alternative to the budget cuts imposed in a week-old debt-crisis strategy that they are racing to prevent from unraveling. Papandreou, his hold on power weakening, was summoned to Cannes, France, for emergency talks on the eve of a Group of 20 summit where he will hear from French President Nicolas Sarkozy that the “only way to resolve Greek debt problems” is through a deal hammered out in a six-day crisis-management marathon. German Chancellor Angela Merkel said today that policy makers “must bring calm to the euro.” Papandreou triggered the latest upheaval in the two-year- long crisis by abruptly announcing on Oct. 31 a parliamentary confidence vote and his desire to hold a referendum on the rescue pact. Global stocks, the euro and bonds of debt-strapped countries tumbled yesterday as concern of a disorderly Greek default mounted.

Euro Declines as EU Leaders Withhold Greek Aid (Source: Bloomberg)
The euro declined, trading 0.6 percent from a three-week low against the dollar, as European leaders said Greece will hold a referendum next month to determine whether it will stay in the 17-nation currency. The euro dropped for a third day versus the yen after French President Nicolas Sarkozy said Greece won’t receive a “single cent” in aid without holding to the terms of its bailout agreement. The dollar maintained yesterday’s slide against the Japanese currency as the Federal Reserve signaled a willingness to take further steps to support growth. New Zealand’s dollar dropped after the nation’s unemployment rate increased in the third quarter. “I can’t come up with a plan to allow Greece to leave the euro, not without experiencing intense capital flight,” said Robert Rennie, chief currency strategist in Sydney at Westpac Banking Corp., Australia’s second-largest lender. “I don’t think there’s anything here to make the euro bounce. The risks certainly point in the direction of weakness.”

MF Global May Have Transferred Customer Money After Audit, CME Group Says (Source: Bloomberg)
MF Global Holdings Ltd. (MF) may have transferred customer money last week following an audit by CME Group Inc. (CME), which has regulatory authority over the futures broker. The transfer “may have been designed to avoid detection in so far as MF Global did not disclose or report such transfers” to the Commodity Futures Trading Commission or CME Group, the Chicago-based exchange owner said today an e-mailed statement. The day it filed the eighth-largest U.S. bankruptcy on Oct. 31, New York-based MF Global disclosed a shortfall in customer accounts that people with knowledge of the matter said may be about $700 million. CME Group, which monitored MF Global’s positions as its designated self-regulatory organization, said yesterday it didn’t know how much client money was missing.

20111103 1043 Global Commodities Related News.

Corn (Source: CME)
US corn futures end lower on outside-market pressure and lackluster demand. Disappointment in the FOMC's decision not to take additional steps at this time to stimulate the economy dampened investor enthusiasm, encouraging traders to take profits following Tuesday's late rally, analysts say. A larger-than-expected crop forecast from Informa Economics added to the pressure, along with a lack of fresh demand. Exports have been weak recently. CBOT December corn ends down 1.4% at $6.45/bushel.

Wheat (Source: CME)
US wheat futures end mostly lower on outside-market pressure and a lack of fundamental support. Prices slumped along with corn as investors were disappointed by lack of stimulus from today's FOMC statement, analysts say. Meanwhile, export demand for US wheat remains weak due to competition from the Black Sea region and rain--and even snow--in the southern Plains should help a winter-wheat crop that is off to a slow start because of this year's drought. CBOT December wheat ends down 6 1/2c at $6.23 1/2 a bushel as KCBT December falls 5 1/2c to $7.13, However, MGEX December ends up 4 1/2c at $9.10 1/4.

Rice (Source: CME)
Losses accelerate in US rice futures, as market ends sharply lower amid lack of export demand for US rice and ample world supplies. Prices have fallen four straight days, most sharply, as prices end at session lows. CBOT Nov. rice ends down 40c, or 2.4%, to $16.14, a three-week low.

US corn, wheat fall on Greek debt woes; soy rebounds
SINGAPORE, Nov 2 (Reuters) - U.S. corn and wheat futures ticked lower, giving up previous session's gains as investors shunned riskier assets following renewed concerns over Greece's debt crisis and a slowdown in China's manufacturing.
"We have such a heavy macro-market influence, but agricultural commodities seem to be supported, particularly corn around these levels," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne.

October rains good for Argentine corn, soy
BUENOS AIRES, Nov 1 (Reuters) - October rains in Argentina's main farming areas helped corn crops develop at a healthy pace while setting the stage for smooth November soy plantings, a meteorologist said on Tuesday.
The showers provided relief after a dry September sparked worries that the La Nina weather disturbance might cause problems for the development of corn plants and the sowing of 2011/12 soy, most of which will be planted this month.

Mixed weather signals for waning U.S. harvest
CHICAGO, Nov 1 (Reuters) - Better harvest weather is moving into the eastern U.S. Midwest this week while wetter weather will slow the remaining harvest in the west, an agricultural meteorologist said on Tuesday.
"Rains by Thursday in the central Midwest will slow down harvest and while there will be some rain late Thursday in the east, after that there is improving weather," said Don Keeney, meteorologist for MDA EarthSat Weather.
 
Viterra's South Australia Unit Shipped Record Grain In 2010-11 (Source: CME)
Viterra Inc.'s South Australia-based unit said that it shipped record export volumes of grain, mostly wheat, in the last marketing year. Viterra owns and operates a string of ports in South Australia as a result of its purchase of ABB Grain in 2009. The nearly 8 million metric tons of grain shipped out in the year ended Sept. 30 demonstrates strong demand for the state's grain, Dean McQueen, the company's executive manager for grain, said in a statement. Port Adelaide and Outer Harbour combined shipped nearly 3 million tons of grain in 2010-11, Port Lincoln exported 2.65 million tons, up by more than a third from the previous record, while Thevenard's exports reached 479,000 tons, Port Giles's 972,000 tons and Wallaroo's 982,000 tons. Viterra didn't provide year-earlier figures. "We expect widespread harvesting to begin shortly with above-average yields expected," McQueen said, adding that 1.7 million tons of grain are being carried over from the last season in Viterra's storage system.

Soybeans, Corn Called Higher as U.S. Farmers Cut Sales; Wheat May Advance (Source: Bloomberg)
What follows are opening calls for U.S. grain and oilseed markets.
-- Soybean futures may open 10 cents to 12 cents a bushel higher on the Chicago Board of Trade as U.S. farmers withdraw offers after prices fell yesterday to a three-week low, Jim Gerlach, the president of A/C Trading Inc. Fowler, Indiana, said in a telephone interview. Soybean-oil futures are expected to open 0.25 cent to 0.35 cent higher, and soybean-meal futures may open up $3 to $4 per 2,000 pounds.
-- Corn futures are called to open 2 cents to 4 cents a bushel higher on the CBOT amid speculation that the government will reduce its estimate of the U.S. crop in a report on Nov. 9, Gerlach said.

China Record Corn Crop Still Failing to Meet Demand for Feed: Commodities (Source: Bloomberg)
China reaped its seventh record corn crop in eight years in the harvest now ending. That still won’t be enough to meet demand, driving a fivefold gain in imports as prices head for the highest-ever annual average. Production reached 189.2 million metric tons in the harvest that began in September, 6.7 percent more than a year earlier, according to a survey of growers in the seven main producing regions carried out by Geneva-based SGS SA for Bloomberg. Imports in the marketing year that began last month may jump to 5 million tons from 1 million tons, according to the median estimate of 10 analysts and traders surveyed by Bloomberg.
While the supply predicted in the SGS survey would exceed the U.S. Department of Agriculture’s estimate by more than 7 million tons, rising imports show farmers are failing to grow enough grain for livestock feed. The fivefold expansion in China’s economy in the past decade reported by the World Bank spurred a change in diets. The dairy herd almost tripled since 2000, and per capita pork consumption in the nation of 1.34 billion people rose 26 percent, USDA estimates show.

Wheat, Corn Futures Decline on Signs of Increasing Global, U.S. Production (Source: Bloomberg)
Wheat and corn futures fell for the second time this week on signs that grain supplies may be ample as countries around the world step up production. Soybeans were little changed. Global wheat production may be 688.7 million metric tons this year, Informa Economics Inc., an agriculture research company, said today in a note to clients. That was 1.1 percent more than the Department of Agriculture’s forecast last month. Output may climb to 694.2 million tons next year, Informa said. The company raised its forecast for the U.S. corn harvest to 12.5 billion bushels, or 0.9 percent above the USDA projection. “We keep finding more and more wheat, even though we’re using a lot,” Mike Zuzolo, the president of Global Commodity Analytics & Consulting in Lafayette, Indiana, said in a telephone interview. “Corn is likely to follow wheat because of ample supplies.”

China Corn Output Rises 6.7% to Record, Tops Forecast, Farmer Survey Shows (Source: Bloomberg)
Corn production in China, the world’s largest grower and consumer after the U.S., probably rose 6.7 percent to a record this year as farmers planted more and favorable weather boosted yields, a survey showed. Output jumped to 189.18 million metric tons (7.5 billion bushels) from 177.24 million last year, based on a survey of the seven largest corn-growing provinces during the harvest in September and October by Geneva-based SGS SA for Bloomberg. The estimate tops the 182 million tons forecast by the U.S. Department of Agriculture on Oct. 12. Chinese growers may boost acreage 4.6 percent in 2012, SGS said.
Domestic production will reach a record for the seventh time in eight years after farmers planted 6.1 percent more land than in 2010, according to the survey of farmers in the northeast provinces of Jilin, Heilongjiang, Shandong, Henan, Hebei, Liaoning and Inner Mongolia from Sept. 26 to Oct. 20. China is expanding domestic supply as rising meat and dairy consumption boost demand for grain used as livestock feed.

China Key Food Prices Fall On Week; Vegetables Lead -Ministry (Source: CME)
Key food prices fell in the week to Sunday, the Ministry of Commerce said. Food items account for about a third of China's consumer price index, and price movements in the sector are closely watched as the government tries to contain inflation. Vegetable prices were 2.2% lower compared with a week earlier, while pork prices fell 1%. Egg prices slipped 0.6%, though beef and mutton prices rose about 0.5%, it said. Edible oil prices held steady compared with the previous week, the ministry said. 'Food of the Future' Has One Hitch: It's All But Inedible. The breadfruit is a remarkable food: The prickly football-size pod is full of nutrients and energy. Growing on one of the earth's highest-yielding trees, it could even help alleviate world hunger, backers believe. There's just one problem: It tastes remarkably bland. "Like undercooked potatoes," says Diane Ragone, a Kauai horticulturalist.
"You have to kind of fool people to get them to try it," says Jacqueline Lau, corporate chef for Roy's Restaurant chain's Hawaii restaurants. It's time the world learned to eat it anyway, says Ms. Ragone. After hopping around 51 Pacific islands to find different breadfruit types, she has assembled more than 120 varieties in a large grove at a National Tropical Botanical Garden site on Maui. Ms. Ragone and Ms. Lau are part of a movement among breadfruit fans here to teach people to like the tasteless stuff. They have started in Hawaii by pitching it to cooks -- professional and domestic -- and plan outreach campaigns for the fruit. Ms. Ragone suggests sauteing breadfruit slices in butter until golden brown, then sprinkling cheese to make breadfruit nachos.
"Think of sauteed breadfruit as a platform for any kind of cuisine or flavor," she says. The breadfruit's proponents say it has unique qualities that could help feed the world's poor. One tree, a member of the fig family, can produce 450 pounds of fruit per season. The fruit packs 121 calories in a half-cup serving and is rich in fiber, potassium, phosphorous, calcium, copper and other nutrients. Its texture and yeasty odor remind some people of fresh bread. "I feel it's the food of the future," says Olelo pa'a Faith Ogawa, a Hawaii-born private chef. "If I were to speak to the breadfruit spirit, it would tell me: 'Grow me! Eat me!' It can feed villages!" Breadfruit has long been a staple in Pacific islands, from where it spread to the Caribbean and Africa. "It's something we all grew up with -- a comfort food," says Pamela Young, weekend anchor and food editor of KITV, the ABC station in Honolulu. "You steam it and add butter and salt."
But persuading neophytes to eat it has never been easy. The fruit is extremely starchy, hence, bland. It can have a mealy texture and tends to spoil quickly, turning into a gooey mush. Britain's Royal Society dispatched Capt. William Bligh to Tahiti in 1787 to collect breadfruit specimens to help feed colonies in the West Indies. After Capt. Bligh's Bounty crew mutinied, they tossed overboard the hundreds of breadfruit plants he had collected. Capt. Bligh finally delivered breadfruit trees to the Caribbean, but it took almost five decades for locals to develop a taste for it, according to some accounts of his mission. Epicurious, a recipe website, doesn't have an entry for breadfruit. Arnold Hiura, author of the 2010 book, "Kau Kau: Cuisine & Culture in the Hawaiian Islands," mentions it only as a "canoe plant" that Polynesian settlers brought in outriggers to Hawaii. "It's one of those forgotten foods," he says.
Even some Hawaii residents are hard to convince. "You know, it's fattening and it doesn't even taste that good," says Michelle Sewell, who has breadfruit trees outside her home on Maui island but never eats the fruit. Ms. Ragone, the horticulturalist, hadn't heard of breadfruit until she moved to Kauai in 1979 as a gardener. "The first time I ate it, I didn't really like it," she says. "It was really bland."

Sugar Rebounds as Industry Group Cuts Brazil Crop Forecast; Coffee Rises (Source: Bloomberg)
Sugar rose in New York for the first time in four sessions after an industry group cut its production forecast for the main cane-growing region of Brazil, the world’s largest supplier. Coffee also climbed. Brazil’s Center South region will produce 488.5 million metric tons of sugar cane in the 2011-2012 crop year, less than a previous forecast of 510.2 million tons, Unica, an industry group, said yesterday. Yields were hurt by freezing June weather during the Southern Hemisphere winter. Sugar futures fell 5.7 percent in the prior three sessions. “The report out of Brazil is helping support sugar, and I think the market may have gotten a little overdone with all the sell-offs we’ve had in the past 48 hours,” Hector Galvan, a senior trading adviser at RJO Futures in Chicago, said in a telephone interview.

Sugar, coffee rise, eye Fed, G20
LONDON, Nov 2 (Reuters) - ICE sugar, coffee and cocoa futures rose in sympathy with shares in early trade after a rollercoaster week, as investors hoped for comfort on the weak U.S. economy and troubled euro zone from meetings of the U.S. Federal Reserve and Group of Twenty leaders.
Raw sugar futures rose on light technically driven buying, supported by a weaker dollar as markets looked towards meetings of the Fed and G20.

Indonesia cocoa exports slump for 8th month in Oct
JAKARTA, Nov 2 (Reuters) - Cocoa bean exports from Indonesia's main growing island of Sulawesi dived for the eighth consecutive month in October, and analysts said on Wednesday the trend is unlikely to improve as the country enters its rainy season.
The world's third-largest cocoa producer exported 6,877.80 tonnes of cocoa last month, versus 33,897.86 tonnes in the same period last year, industry data showed.
 
US cotton output seen down due to drought-ICAC      
WASHINGTON, Nov 1 (Reuters) - Severe drought in the southwestern United States will hamper domestic cotton production in 2011/12, while global output is expected to rise, an international farm group said on Tuesday.
The International Cotton Advisory Committee secretariat said high prices will drive world cotton production up 8 percent to the largest crop since 2004/05. Production will primarily be driven by China and India, with increases also expected in Pakistan, Australia, parts of Africa and Turkey.

Brazil 2011/12 CS sugar output cut again - Unica
SAO PAULO, Nov 1 (Reuters) - Brazil's main cane-milling association cut its forecast for the current crop again on Tuesday and said next season would show "timid growth" as aging plants and bad weather exact tolls on output.
Sugar production from the main center-south cane region is now forecast at 30.8 million tonnes, down from 31.57 million tonnes projected in August, industry association Unica said in its latest forecast of the 2011/12 crop.

Brazil coffee crop muddles through erratic weather
BRASILIA, Nov 1 (Reuters) - Trees in Brazil's Minas Gerais coffee belt have shed some fruit due to their weakened state following months of dry weather but the crop looks secure for now, the country's biggest cooperative said on Tuesday.
The world's top coffee grower is in a delicate early phase of the 2011/12 season, with tiny coffee beans forming following a wave of flowering, but an extended dry season earlier this year caused leaf loss causing trees to abort some fruit for lack of energy now.

S.Africa cuts 2011/12 sugar output forecast
JOHANNESBURG, Nov 1 (Reuters) - South Africa's 2011/12 sugar output is estimated at 1.855 million tonnes, from a previous forecast of 1.909 million tonnes, the South African Sugar Association (SASA) said.
Sugarcane crush was forecast at 17.029 million tonnes from 17.072 million tonnes, the industry association, which represents producers and millers of the sweetener in Africa's biggest economy, said in a statement on its website seen by Reuters on Tuesday.
 
Cameroon's lone cocoa grinder buys 3,745 T in Sept
YAOUNDE, Nov 1 (Reuters) - Cameroon's lone local grinder Sic-Cacaos purchased some 3,745 tonnes of cocoa beans in September, up from 2,091 tonnes the previous month, according to data from the National Cocoa and Coffee Board (NCCB) and the company.
The figure showed a slight drop from the 4,034 tonnes the firm bought for the same month last season.
 
Indonesia Oct Sumatra coffee exports fall 72pct, down fifth mth
BANDAR LAMPUNG, Indonesia, Nov 1 (Reuters) - Indonesia's robusta coffee bean exports from the main growing area in southern Sumatra slid 72 percent in October from the same month last year, marking five straight months of decline as hot weather hit output and stocks, government data showed on Tuesday.
Hot weather conditions had hit crops earlier this year and resulted in current low stock levels, Muchtar Lutfie, research head of the Indonesia Coffee Exporters Association's (AEKI) Lampung branch, said in a statement.
 
China's 2011/12 sugar output seen up 15 pct-industry official
BEIJING, Nov 1 (Reuters) - China's sugar output in the 2011/2012 crushing year from October is likely to be around 12 million tonnes, up 15 percent from 10.45 million tonnes last year, a senior industry official said on Tuesday.
Meanwhile, China's sugar consumption in 2011/12 is expected to reach 14 million tonnes, showing a shortage of 2 million tonnes, Liu Hande, the chairman of the Guangdong Sugar Association, said at a sugar conference in Haikou. His remarks were made available in a transcript published on Guangxi Sugar Network's.

China's rubber buyers want to renegotiate contracts-trade
SINGAPORE/BANGKOK, Nov 2 (Reuters) - China's rubber buyers want to negotiate new contracts with Thai sellers after tyre grade
dipped below $4 a kg, raising fears of another round of defaults by the world's largest consumer of the commodity, dealers
said on Wednesday.
Buyers in China shocked the market late in 2008 when they refused to pay for their cargoes after prices tumbled by more than
half from their peaks in the wake of a global economic meltdown that drove automakers in Europe, North America and Japan to
their knees.

Euro Coal-Nov S.African trades at $104.75/T
LONDON, Nov 1 (Reuters) - European prompt physical coal prices fell by around $2.00 percent on Tuesday after the Greek decision to call a referendum over its debt bailout revived concerns about the euro zone, pumelling equities, the euro, copper and oil prices.
Oil fell by over 2 percent or just over $3.00 a barrel to $106.93 at 1700 GMT.

Power to use 1 mln tonnes more coal in 2011/12
TOKYO, Oct 31 (Reuters) - Electric Power Development Co (J-Power)  expects to consume 22 million tonnes of thermal coal in the year ending in March, up 1 million tonnes from a year earlier in the wake of the nuclear disaster in March.
J-Power, Japan's wholesale power producer and biggest thermal coal user, revised up its coal-fired plant utilisation rate to 80 percent in 2011/12 from its April projection of 72 percent. The run rate compared with 78 percent in the year ended in March.

Russia oil output hits new high after duty cut
MOSCOW, Nov 2 (Reuters) - Cuts in the crude export duty resulted in Russia's oil production, the world's largest, reaching a post-Soviet high of 10.34 million barrels per day (bpd) in October, the Energy Ministry said on Wednesday.
This compared with a previous record high of 10.30 million bpd hit in September.

Strong fuel demand growth to strain supplies
SINGAPORE, Nov 1 (Reuters) - Strong fuel demand growth from emerging economies will strain global supply and keep energy prices high even if demand from developed economies contracts, participants at a Singapore energy conference said on Tuesday.
Demand has grown to 87 million barrels per day from around 84 million bpd in the past five years despite the 2008 financial crisis and ensuing recession, Jose Sergio Gabrielli, CEO of Brazilian state oil firm Petrobras , said.

Libyan oil output hits 567,000 bpd - NOC
TRIPOLI, Nov 1 (Reuters) - Libya's oil production has risen to 567,000 barrels per day, the National Oil Corporation (NOC) chairman Nouri Berrouin told Reuters in an interview on Tuesday.
The Tuesday morning production report showed that output from Spanish oil and gas company Repsol's  El Sharara field had risen to 90,000 bpd accounting for the bulk of the latest upturn in flows, he said.

Oil Slides After Europe Witholds Greek Aid, U.S. Crude Stockpiles Increase (Source: Bloomberg)
Oil fell, paring yesterday’s gains, on speculation that Europe’s dispute with Greece over a referendum on a bailout agreement threatens to intensify the debt crisis and derail the region’s economy. Futures slid as much as 58 cents, or 0.6 percent, after European leaders severed aid payments to Greece and warned the country it will surrender all payments if it votes against a rescue package agreed last week. Brent crude’s technical indicators are bearish in the near-term amid “significant” downside risks to demand, according to Standard Chartered Plc. U.S. oil and gasoline supply rose more than forecast last week. “Near-term we are bearish, given precarious growth sentiment, projected euro weakness through the fourth quarter of 2011 and slowly improving supply prospects,” Helen Henton, London-based head energy analyst at Standard Chartered Plc, said in a report e-mailed today.

Iron Ore-Shanghai rebar at one-week low; ore extends gains
SHANGHAI, Nov 2 (Reuters) - Shanghai rebar futures fell again on Wednesday, reaching its lowest level in more than a week, as fears about the viability of a European debt deal re-emerged, despite iron ore prices extending gains amid buying by Chinese steel mills.
Asian stocks wiped out all gains made during the huge relief rally last week after European leaders had agreed a basic framework to help reduce Greece's huge debts, boost the region's bailout fund and strengthen banks.

Short supply to keep lifting metals prices-PDAC chief
HELSINKI, Oct 31 (Reuters) - Key metals like copper, iron ore and manganese may rise further in the long term as emerging countries are using more of them and reserves are decreasing, the head of a Canadian mining industry group said on Monday.
"Iron ore and all the real fundamentals are going to continue to rise, because there is finite amount of those metals," Scott Jobin-Bevans, president of the Prospectors and Developers Association of Canada (PDAC) told Reuters on the sidelines of a Finnish mining seminar.

Iron ore price drop to boost Chinese imports by sea
LONDON, Oct 31 (Reuters) - Weaker international iron ore prices are driving high-cost Chinese domestic suppliers to cut output, which will push the top consumer and steelmaker to rely more on seaborne imports in the coming weeks, supporting the dry freight market.
International iron ore prices have dropped more than 30 percent since September, including a record 18 percent plunge last week, as lower steel prices have forced Chinese steelmakers to cut production.

India's iron ore exports currently minimal-trade body
MUMBAI, Oct 31 (Reuters) - Iron ore exports from India, normally the world's third-biggest exporter, are currently minimal as a slump in prices since early September and high railway freight and export duties have made the business unviable, a trade body official said on Monday.
"(Iron ore exports from) Karnataka (state) is shut, in Orissa (state) railway freight is coming in the way along with export duty," said R.K. Sharma, secretary-general of the Federation of Indian Mineral Industries (FIMI).

Tin Makers From Indonesia to Choke Off Exports Till 2012 to Revive Prices (Source: Bloomberg)
Twenty-five tin smelters in Indonesia, the largest shipper, agreed to extend an export ban until the yearend to boost prices, said Ismiyardi, head of the provincial parliament in Bangka Belitung, the top producing area. PT Timah, the world’s biggest exporting company, and PT Koba Tin back the extension, said Ismiyardi after an industry meeting. Timah is allowed to ship contractual sales, said Bangka Governor Eko Maulana Ali. Two calls to the mobile phone of Wachid Usman, the company’s president director, weren’t answered. Fifteen smelters had agreed to maintain the ban on Oct. 28. Tin plunged 17 percent in September on concern that Europe’s debt crisis may derail the global economy, prompting Indonesian smelters to suspend exports from Oct. 1 to try to drive prices to $25,000 per metric ton. The country represents more than 40 percent of global exports, according to Peter Kettle, research manager at St. Albans, England-based ITRI Ltd.

Top Gold Seers Forecast Record High in March (Source: Bloomberg)
The most accurate forecasters say gold will rebound from its biggest monthly plunge since 2008 and reach a record by March because economic growth is stagnating and Europe’s debt crisis is unresolved. Futures traded in New York may rise 13 percent to $1,950 an ounce by the end of the first quarter, according to the median of estimates compiled by Bloomberg. The predictions are from eight of the top 10 analysts tracked by Bloomberg over the past eight quarters. Two declined to give forecasts. Holdings in exchange-traded products backed by bullion rose the most in three months in October, and the most-widely held option gives owners the right to buy gold at $2,000 by Nov. 22. Demand for the metal accelerated since May as slowing growth and mounting concern that European leaders will fail to contain the region’s debt crisis caused $7.5 trillion to be erased from the value of global equities.

Baltic index at near 1-month low, cargo volumes slow
LONDON, Nov 1 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell to its lowest in nearly a month on Tuesday as a cargo slowdown on the larger capesize market continued to take its toll.  
The overall index fell 53 points or 2.7 percent to 1,912 points in a fifth straight drop and was at its lowest since  Oct. 5.

20111103 1042 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures end near unchanged, erasing most of the market's early gains, as traders remain cautious in an uncertain global economy. Spillover weakness from lower grain futures and outside markets paring early advances helped temper investor enthusiasm, analysts say. A weaker US dollar and higher crude oil and equities promoted early price strength. However, without fresh fundamentally supportive news and lingering fear of slowing global demand, traders took profits to pare early advances. CBOT Jan soy ended down 1/4c at $12.02 3/4/bushel.

Soybean Meal/Oil (Source: CME)
Soy-product futures end flat, backpedaling from initial gains in the absence of fresh fundamental support to buoy prices. The market mirrored the choppy action in soybeans as traders remained cautious in an uncertain economic climate. CBOT December soymeal ends down 20c at $310.50/short ton as December soyoil fell 0.05c to 50.85c/pound.

India Food Minister: Sought Cut In Indonesia's Crude Palm Oil Export Tax (Source: CME)
India has sought a cut in Indonesia's export tax on crude palm oil in lieu of cheap rice supplies after the Southeast Asian nation altered its tax regime to encourage more exports of higher value refined oil. "The sudden hike in export tax on crude oil by Indonesia will badly hurt the Indian industry, so we have sought a reduction," Indian Food Minister K.V. Thomas told reporters after a meeting with an Indonesian delegation, which sought 500,000 metric tons of low-cost rice from India. Indonesia, the world's biggest palm oil producer and exporter, reduced its export tax on refined, bleached and deodorized palm olein in bulk to 8% from 15% and raised the duty on crude palm oil to 16.5% from 15% effective Sept. 15. The tax change hurts Indian refiners as it has become cheaper to import the refined edible oil rather than process imported crude oil from Indonesia, one of the leading suppliers to the South Asian country.

Palm oil up on weather concerns, euro zone weighs
KUALA LUMPUR, Nov 2 (Reuters) - Malaysian palm oil futures rose 0.2 percent as traders looked to a developing La Nina weather pattern that could curb output, although gains were limited on uncertainty over the euro zone debt crisis.  
"External factors are going to dominate palm oil futures, " said a trader with a foreign commodities brokerage.