Friday, November 4, 2011

20111104 1815 FCPO EOD Daily Chart Study.

FCPO closed : 3013, changed : +37 points, volume : lower.
Bollinger band reading : upside biased with possible pullback correction.
MACD Histrogram : rising, buyer in control.
Support : 2970, 2950, 2920, 2900 level.
Resistance : 3020, 3050, 3070, 3100 level.
Comment :
FCPO closed recorded gains for the 3rd day with reducing volume changed hand while overnight soy oil closed recorded huge gains and currently trading range bound between gains and losses while crude oil price trading higher.
FCPO price trade higher after strong overnight soy oil gains, fear of flood over plantation estate due to current heavy raining season and after Reuters reported survey of better export, little higher output level but higher stock levels.
Daily chart formed an up doji bar candle positioned near upper Bollinger band level after market opened gap up, eased little lower and move higher to closed near the high of the day.
Technical study remained suggesting an upside biased market development with possible pullback correction and focus on weather factor over the long weekend plus Monday holiday.
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.

20111104 1741 FKLI EOD Daily Chart Study.

FKLI closed : 1480.5, changed : +25 points, volume : lower.
Bollinger band reading : pullback correction upside biased.
MACD Histrogram : turned upward, buyer still in control.
Support : 1477, 1470, 1458, 1445 level.
Resistance : 1485, 1491, 1500, 1505 level.
Comment :
FKLI closed recorded huge gains with lower volume transacted doing 3 points premium compare to cash market that also closed higher. Overnight U.S. markets closed higher and today Asia markets recorded gains while European markets currently trading mostly higher.
News on unexpedted European Central Bank rate cut and increase U.S. factory orders lifted global markets to trade higher. However, uncertainty factors to wacth on will be G20 meeting annoucement, Greece development and market awaits U.S. October unemployment data.
Daily chart formed an up bar candle with lower shadow closed in between upper and middle Bollinger band level after market opened higher, traded range bound within 10 points range followed by last minutes short covering activities pushed market to closed near the high of the day.
chart reading conitnue to suggesting a pullback correction upside biased market development doing 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.

20111104 1701 Regional Markets EOD Daily Chart Study.

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

20111104 1602 Global Market & Commodities Related News.

Asia Stocks Snap Four-Day Losing Streak on Greece, ECB Rate Cut (Bloomberg)
Asian stocks advanced for the first time in five days as U.S. factory orders increased and the European Central Bank unexpectedly cut interest rates, reducing concern the debt crisis will spur a credit crunch. HSBC Holdings Plc (HSBA), Europe’s No.1 lender by market value, climbed 3.4 percent in Hong Kong. China Petroleum & Chemical Corp. (386), China’s biggest oil refining company by sales, led the nation’s energy companies higher on speculation the government may allow the mainland’s fuel producers to adjust prices on their own. Komatsu Ltd. (6301), Asia’s largest maker of construction equipment by market value, surged 6.5 percent after a report showed orders at American factories increased in September.
“There’s less risk today because people are little less concerned that Greece will run on its own direction,” Michael Vogelzang, chief investment officer at Boston Advisors LLC, told Bloomberg Television. “It sounds like there is some progress and the markets moved up. We think the ECB moves were helpful. It’s better to aggressively attack these issues than sit idly by.”

China’s Stocks Rise on Policy Outlook, Capping Biggest Weekly Gain in Asia (Bloomberg)
Chinese stocks rose today, capping the biggest gain among major Asian indexes this week, as Greece signaled it won’t hold a referendum on a bailout package and on speculation China will take more measures to boost growth. Jiangxi Copper Co. climbed the most in a week as commodity prices jumped after Greece moved closer to accepting a bailout and the European Central Bank unexpectedly cut interest rates. China Petroleum & Chemical Corp. (600028) and PetroChina Co. climbed at least 1.5 percent on speculation that the government may allow refiners to adjust prices on their own. China Life Insurance Co., the largest insurer, rose for an 11th day on the prospect improving stock and bond markets will boost investment returns.
“The rate cut and recent progress on the Greek debt problem help local investors psychologically by increasing their appetite for risk assets,” said Zhang Ling, general manager at Shanghai River Fund Management Co. “Domestically, the period for policy over-tightening is over and that’ll help the economy get on a smooth track and is positive for stocks.”

Shares rise on hopes Greece will shelve referendum
TOKYO, Nov 4 (Reuters) - Asian shares rose more than 2 percent and the euro steadied on hopes Greece will abandon a proposed referendum on a European Union bailout, but investors remained cautious over a confidence vote scheduled for later in the Greek parliament.
"The market regained some calm but uncertainty remains over the outcome of today's confidence vote," said Yuji Saito, director of the foreign exchange division at Credit Agricole Bank in Tokyo.

FOREX-Euro hits stiff resistance amid doubts on Greece
TOKYO, Nov 4 (Reuters) - The euro has run into stiff resistance after a rebound sparked when Greece abandoned plans for a referendum on its bailout package, as market players worry that protracted political instability could bring further flare-ups in the euro zone's debt crisis.
Few market players see an end any time soon to the euro zone's debt and financial crisis, with Italian, Spanish and even French government bonds trading at hefty spreads over their German counterparts.

Chinese may look at MF Global metals business
LONDON, Nov 3 (Reuters) - Collapsed futures broker MF Global's metals operations are being dismantled but its traders are likely to be snapped up by new entrants -- such as Chinese banks -- eager to secure a foothold in London's metals market, industry sources said.
But administrators may struggle to sell MF Global's floor seat on the London Metal Exchange (LME) especially now that volume is shifting to electronic trade, they said.

Economy's shifts erode U.S. states' tax bases
Nov 3 (Reuters)- State governments across the United States are just a few months into their fiscal years and already many fear that tax revenues are running short of forecasts.
This is getting to be an annual ritual. Officials in New York, California, Florida and Washington this year have all expressed concerns about the outlook.

U.S. job growth could hint at some improvement
WASHINGTON, Nov 4 (Reuters) - U.S. employment growth was likely too weak in October to pull down the nation's lofty jobless rate, though it may have been strong enough to suggest some economic momentum is building.
Nonfarm payrolls rose 95,000 last month, according to a Reuters survey, after expanding by 103,000 in September.

Rio Tinto says China economy should stay resilient
SYDNEY, Nov 4 (Reuters) - Global miner Rio Tinto   sought on Friday to brush off fears of a global economic slowdown and softening  demand for industrial commodities in China, Rio's biggest market, where it said the economy should remain resilient.
Rio Tinto Chairman Jan du Plessis said that China's economic growth is visibly slowing, but it would remain fairly resilient to even quite a sharp correction in developed economies.

Demand outlook for agricultural goods uncertain, says FAO (Reuters)
Demand for agricultural products is extremely uncertain, says Abdolreza Abbassian, senior economist at the UN's Food and Agricultural Organisation, after its food price index hit an 11-month low.

U.S. soy exports set for a rebound: Gavin Maguire
--Gavin Maguire is a Reuters market analyst. The views expressed are his own. To get his real-time views on the market, please join the Global Ags Forum. --
CHICAGO, Nov 3 (Reuters) - U.S. soybean prices have been under pressure lately and plumbed one-year lows below $12 a bushel last month on a combination of harvest sales pressure and subdued end-user demand.
But a change could be brewing for this market as we enter the peak season for U.S. exports to China and U.S. export prices for soybeans become increasingly competitive versus alternative origins for other export destinations.

Wheat falls on US weather, Australian crop outlook
SINGAPORE, Nov 4 (Reuters) - Chicago wheat dipped after the previous session's biggest one-day rally in a week, as the market was pressured by forecasts of crop-friendly weather in the United States and expectations of a near-record output in Australia.
"Before weather events like La Nina result into crop-damaging rains, Australian farmers will try to speed up the harvest, which is a bearish factor for prices," said Ker ChungYang, an analyst at Phillip Futures in Singapore.

Philippines says sees Q3 rice output above target
MANILA, Nov 4 (Reuters) - The Philippines' rice output in the third quarter likely exceeded the government's target, with most of the crop harvested before typhoons hit in late September, the agriculture secretary said on Friday.
Proceso Alcala also said he still expects the farm sector's overall output to grow 4-5 percent this year despite the typhoon damage on crops.
Argentine soy-crushing workers end strike
BUENOS AIRES, Nov 3 (Reuters) - A short-lived strike by Argentine soy-processing workers ended by government order on Thursday, after slowing activity at plants around the main grains hub of Rosario, a union leader said on Thursday.
"They decreed a mandatory conciliation for 15 days," Edgardo Quiroga, an official with the CGT labor union, told Reuters, meaning that workers have a bit more than two weeks to negotiate the year-end bonuses at the heart of the dispute.

Colombia unlikely to hit 2011 coffee target
CARTAGENA, Colombia, Nov 3 (Reuters) - Colombia may miss the 2011 coffee production target of 9 million 60-kg bags after being hit by roya fungus and heavy rains, Agriculture Minister Juan Camilo Restrepo said on Thursday.
The world's top producer of high-quality Arabica beans has fallen short of output targets for the past two years due to bad weather and tree renovation, while this year rains have kept some trees from getting enough sun to flower properly.

Argentine 2011/12 soy planting flows easily-exchange
BUENOS AIRES, Nov 3 (Reuters) - The planting of 2011/12 soy in Argentina, expected eventually to cover 18.6 million hectares, progressed rapidly over the last seven days, the Buenos Aires Grains Exchange said in a report on Thursday.
Growers had sown 12.5 percent of the soy expected to go into the ground this season, marking an advance of 8.1 percentage points over the seven days through Thursday, the exchange said in its weekly crop report.

German grain trader Toepfer expands in Canada
HAMBURG, Nov 3 (Reuters) - Germany's largest grain trading house, Alfred C. Toepfer International, said on Thursday it is taking over two Canadian trading companies, giving it its first processing facilities in Canada.
Toepfer, whose majority shareholder is Archer Daniels Midland , said it has bought Western Grain Trade Ltd and Western Grain Cleaning & Processing Ltd, which are Saskatchewan-based processors and exporters of peas, lentils, mustards, flaxseed and various special crops.
BG to import spot LNG cargoes into Singapore from 2013
SINGAPORE, Nov 4 (Reuters) - Britain's BG Group  will import additional spot cargoes of liquefied natural gas (LNG) into Singapore from 2013 on top of the 3 million tonnes of term supply it is contracted to sell to power and industrial users in the city-state, a company executive said on Friday.
The cargoes will first be offered to BG's existing term customers, primarily power generation companies, before being opened up to smaller users of LNG, Anthony Barker, General Manager of BG Gas Marketing Singapore, told reporters at the Singapore International Energy Week.

Indian oil firms to raise gasoline prices from Friday
Nov 3 (Reuters) - India's state-run fuel retailers will raise gasoline prices by about 2.7 percent from Friday, a company executive said, a move that will help them cut revenue losses but adds pressure to stubbornly high inflation in Asia's third-largest economy.
Indian Oil Corp (IOC) , the biggest fuel retailer in the country, will raise gasoline prices by 1.82 rupees a litre from Friday, its head of finance P.K. Goyal said on Thursday.

China oil firms to conditionally set fuel prices -paper
BEIJING, Nov 4 (Reuters) - Chinese oil firms may be allowed to adjust refined oil products prices by themselves in line with a government-set pricing formula when crude oil prices fluctuate within a certain price range, the China Securities Journal reported on Friday.
The newspaper report did not specify the range.

Brent steady above $110 on hopes Europe crisis will ease
SINGAPORE, Nov 4 (Reuters) - Brent crude held steady above $110, after rising more than a $1 in the previous session as Greece backed away from a referendum and a rate cut by the European Central Bank raised hopes for an easing of the region's debt crisis.
"The economic uncertainty is weighing on oil prices, and will continue to do so till the time the markets see some clarity," said Tony Nunan, a risk manager with Tokyo-based Mitsubishi Corp. "Prices are able to find a floor due to supply concerns and seasonal factors with the winter coming in."

ArcelorMittal says steel demand dip deepening
BRUSSELS, Nov 3 (Reuters) - ArcelorMittal SA , the world's largest steelmaker, said a summer dip in demand is deepening into a second-half slump,  with even lower steel shipments and prices in the fourth quarter than the third leading it to scrap some investment plans.
ArcelorMittal, which makes between 6 and 7 percent of global steel, said on Thursday customers were increasingly cautious due to economic uncertainties, such as the risk of recession in developed markets and policy tightening in China leading to slower growth.

Copper rises on ECB rate cut, Greek bailout hopes
SHANGHAI, Nov 4 (Reuters) - Copper rose, cheered by the European Central Bank's interest rate cut and news that Greece is likely to forego plans to hold a referendum on its bailout package, easing worries that the country could face a disorderly default.  
"The rate cut by the ECB gave base metals a short-term boost today, and investors are comforted that the Greece referendum turned out to be a bit of Greek drama," said Dongzheng Futures trader Du Xiaohua.

METALS-Copper rises on ECB rate cut, Greek bailout hopes
SHANGHAI, Nov 4 (Reuters) - Copper rose on Friday, cheered by the European Central Bank's interest rate cut and news that Greece is likely to forego plans to hold a referendum on its bailout package, easing worries that the country could face a disorderly default.  
Three-month copper on the London Metal Exchange  rose 0.9 percent to $7,981 a tonne by 0354 after rising 0.4 percent in the previous session.

PRECIOUS-Gold eases after rally, holds near 6-wk top
SINGAPORE, Nov 4 (Reuters) - Gold ticked lower on Friday after rising more than 1 percent in the previous session, but prices held near their highest in six weeks due to the uncertainty surrounding the euro zone debt crisis and the prospect of a Greek exit from the euro.    
Greece's abrupt call for a referendum, just days after a deal was struck to save the debt-stricken country from defaulting, ignited panic in global financial markets.

Gold eases after rally, holds near 6-wk top
SINGAPORE, Nov 4 (Reuters) - Gold ticked lower after rising more than 1 percent in the previous session, but prices held near their highest in six weeks due to the uncertainty surrounding the euro zone debt crisis and the prospect of a Greek exit from the euro.
"It's not all plain sailing in the Aegean," said Nicholas Trevethan, a senior metals analyst at ANZ Bank in Singapore.

20111104 1109 Global Market & Commodities Related News.

GLOBAL MARKETS-Asian shares rise on Greece hopes, confidence vote eyed
TOKYO, Nov 4 (Reuters) - Asian shares rose and the euro steadied on Friday on hopes Greece will abandon a proposed referendum over a euro-zone bailout but investors remained cautious over a confidence vote later in the day in the Greek parliament.
"The market regained some calm but uncertainty remains over the outcome of today's confidence vote," said Yuji Saito, director of the foreign exchange division at Credit Agricole Bank in Tokyo.

COMMODITIES-Markets jump on hopes Greece will ditch referendum
NEW YORK, Nov 3 (Reuters) - Oil prices jumped almost 2 percent on Thursday and most metals and crops rallied too, buoyed by hopes that Greece will abandon a referendum threatening to scuttle euro zone aid for the country.
"All eyes are on Europe," said James Cordier, senior analyst for commodity brokers in Florida.

Oil rises on Greece hopes, surprise ECB rate cut
NEW YORK, Nov 3 (Reuters) - Oil prices rose on Thursday as Greece's government backed away from a proposed referendum on staying in the euro and a rate cut from the European Central Bank raised hopes for an easing of the region's debt crisis.
"There was a more positive tone on the market, with the surprise ECB move and later on the developments in Greece that pulled up the euro," said Matt Smith, analyst at Summit Energy in Louisville, Kentucky.

China oil firms to conditionally set fuel prices -paper
BEIJING, Nov 4 (Reuters) - Chinese oil firms may be allowed to adjust refined oil products prices by themselves in line with a government-set pricing formula when crude oil prices fluctuate within a certain price range, the China Securities Journal reported on Friday.
The newspaper report did not specify the range.

Canadian oil and gas drilling set to rise 10 pct
CALGARY, Alberta, Nov 3 (Reuters) - Canadian oil and natural gas drilling will rise 10 percent next year as producers take advantage of strong oil prices, the Petroleum Services Association of Canada said in its annual forecast, released on Thursday.
The association expects 15,100 wells to be drilled in Canada next year, up from the 13,700 wells it estimates will be completed in 2011.

Canada oil profits up on prices, oil sands output
CALGARY, Alberta, Nov 3 (Reuters) - High oil prices and rising oil sands production bolstered quarterly profits at Suncor Energy Inc  and Canadian Natural Resources Ltd , Canada's two largest oil companies, while output at Husky Energy Inc's  offshore fields rose.
Earnings reports from the three companies on Thursday sparked a jump in their share prices, with Canadian Natural surging nearly 8 percent on production gains and a rosy outlook for 2012 output.

Greek turmoil threatens Europe's gas pipe projects
LONDON, Nov 3 (Reuters) - Turmoil in Athens threatens plans to bring central Asian gas into Europe through Greece and will slow efforts to reform the country's energy sector.
Two out of three international consortia -- TAP and ITGI -- that are competing to build the infrastructure to carry gas from Azerbaijan's Shah Deniz II gas field to Europe plan to pass through debt-ridden Greece and through Italy into the rest of Europe.

Natural gas ends up, shorts cover despite EIA build
NEW YORK, Nov 3 (Reuters) - Front-month U.S. natural gas futures ended higher on Thursday as shorts rushed to cover after downside momentum quickly stalled despite a government report showing a weekly inventory build above expectations.
"We had a bearish (EIA storage) number, a little larger than expected, but there was no follow through to the downside, so people who sold it started to cover," said Tom Saal, senior vice president at INTL Hencorp Futures in Miami.

Euro Coal-Prices steady, no fresh trades done
LONDON, Nov 3 (Reuters) - Prompt physical coal prices held steady on Thursday, supported by oil's rise but activity in general was low, primarily because Chinese importers have all but halted fresh buying.
"Prices CIF China and FOB have come down at least $8.00, maybe $10 in the past month and that is largely due to the problems the Chinese are having with credit but we haven't had a single request for delayed shipment or cancellation - they want the coal and don't seem to be playing price games," one utility trader said.

20111104 1041 Malaysia Corporate Related News.

MMHE secures RM1.4bn ExxonMobil contract
Malaysia Marine and Heavy Engineering Holdings has secured a RM1.4bn contract to build an offshore platform deck and two inter-platform bridges. MMHE said on Thursday its unit, Malaysia Marine and Heavy Engineering SB, had signed a contract with ExxonMobil Exploration and Production Malaysia Inc. The contract was part of the Tapis enhanced oil recovery project with ExxonMobil and was expected to be completed by end-2013.(Financial Daily)

RM6bn Integrated Healthcare IPO
Integrated Healthcare Holdings SB is planning an initial public offering (IPO) that may raise up to USD2bn (RM6.3bn) after completing the purchase of a Turkish hospital chain, said two people with knowledge of the matter. The company, controlled by Khazanah Nasional, asked banks to submit proposals for the IPO by today. The sales would take place in the first half of 2012 in Singapore or Kuala Lumpur. (StarBiz)

Gas Malaysia listing gets Bursa nod
MMC Corp said Bursa Malaysia has approved the proposed listing of its subsidiary, Gas Malaysia, on the main board of the exchange, according to a filing to the exchange by the utility and infrastructure company yesterday. The initial public offering of the gas reticulation company is likely to be priced at RM2.20 a share, according to informed sources. (Malaysian Reserve)

Malaysia, China firm ink RM983m underground sewage plant deal
The Malaysian government and Beijing Enterprises Water Group Ltd (BEWG) have signed an agreement for the construction of the RM983m Pantai 2 Sewage Treatment Plant, the country's first underground sewage treatment plant. Minister of Energy, Green Technology and Water, Datuk Seri Peter Chin Fah Kui, said yesterday the job was awarded to Beijing Enterprises on a design-and-build basis following the signing of a memorandum of understanding on cooperation in the sewerage services industry here on 11 Nov, 2009. Chin said the new sewage plant, with the application of green technology, would have a capacity of 1.423m population equivalent (P.E) or equal to 320,000 cubic meters per day .It will cater to the sewerage treatment needs of the 1.8m residents within the Klang Valley until 2035. (Financial Daily)

Iskandar, Zhuoyuan unit in RM2.5bn Medini foray
Iskandar Investment Bhd (IIB) and Qingdao Zhuoyuan Investment Holdings will embark on a RM2.5bn mixed development project tin Medini Iskandar Malaysia. Zhuoyuan's unit, Zhuoda Real Estate Group, will be developing an 18.14-acre plot in Medini North with IIB on an 80:2 basis. Medini is IIB's flagship development within Johor's Iskandar administrative region."This joint venture with Zhuoyuan to develop a residential project in (BT)

Sime, Sunway: To jointly develop townships in Iskandar. Sime Darby Bhd and Sunway Group's property division are likely to jointly develop townships in Iskandar Malaysia in Johor. It was said the government was allocating land for the joint development and that the companies were buying the concession land at a good rate. (Source: The Sun)

MAS, AirAsia: SC, Bursa probe MAS-AirAsia shares swap. SC and Bursa Malaysia are investigating the swap deal between Khazanah National Bhd and Tune Air Sdn Bhd in MAS and AirAsia shares for the possibility of insider trading. (Source: The Edge Financial Daily)

Proton: To tap Chinese billionaires for Lotus sales. Proton Holdings Bhd hopes to tap the strong appetite of Chinese billionaires for luxury brands, and sell up to 400 units of the Lotus sport car in China. Group MD Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said with the Lotus turnaround plan that focuses on producing better cars in the future and improving volume, not being in China would be wrong. (Source: Malaysian Reserve)

Green Packet: P1's WIGGY 39 for light surfing. P1 has launched the lowest-priced post-paid mobile broadband plan, known as WIGGY 39, which will be available from today. P1 said the plan will suit broadband users who desire an affordable plan for light surfing and keeping up with social networks when they are out and about. (Source: The Sun)

Oil & Gas: Petronas lauded for bringing projects to Sabah. The Sabah Oil and Gas Contractors Association (SOGCA) said the states oil and gas industry has been energised by Petronas' plans to develop RM45b worth of long-term key projects in Sabah. (Source: The Star)      

AirAsia sees minimal impact on its flight operations in Thailand despite  Bangkok facing the worst-ever flood disaster in its history. The carrier had  received some booking cancellations and postponements as a result of the  weather conditions but the impact is minimal as holidaymakers travelling to  Bangkok took advantage of the service recovery options offered to divert their  holidays to other destinations including Malaysia. Part of the service recovery options, customers may change their travel  dates up to Dec 15. The date change fee will be waived. The second  option is that customers can keep their seat value as a credit shell which  will be valid for up to three months from the issued date. (Star Biz)

Khazanah Nasional is tight lipped on speculation that it is planning to raise  up to US$2bn (RM6.3bn) by selling shares in Parkway Pantai Ltd. Reports have  indicated that merchant banks had been asked to submit their proposal by today  for the listing exercise. "We won't comment on any market speculation,"  Khazanah spokesperson Mohd Asuki Abas said yesterday. Khazanah owns 70%  of Integrated Healthcare Holdings Sdn Bhd, which in turn owns 100% of  Parkway Pantai.  Last month, Parkway Pantai chairman Datuk Mohammed Azlan  Hashim was reported as saying that it was looking to relist, just a year  after being taken private. Nevertheless, it is understood that a decision  on the IPO exercise will only be made after its talks to acquire a Turkish  hospital chain is completed. A Bloomberg report yesterday said that the company was in advanced  talk to buy a majority stake in Turkey's Acibadem Saglik Hizmetleri &  Ticaret AS for US$1bn (RM3.15bn) and that a deal could be reached by  as early as next month. (BT)  

The Malaysian government and Beijing Enterprises Water Group Ltd (BEWG)  have signed an agreement for the construction  of the RM983m Pantai 2  sewage treatment plant, the country's first underground sewage treatment  plant. Minister of Energy, Green Technology and Water, Datuk Seri Peter Chin  Fah Kui, said on the job was awarded to Beijing Enterprises on a  design-and-build basis following the signing of a MOU on cooperation in the  sewerage services industry 2009. He said the new sewage plant would have a  capacity of 1.4m population equivalent (P.E) or equal to 320,000 cubic meters  per day. It will cater to 1.8m residents  within the Klang Valley until the year  2035. He said that the government would close down more than 100 small  sewage plants by 2020 as the cost of operation of these plants was high. (Edge)

Lingui Developments Bhd, plans to reforestate between 10,000 and 15,000  hectares of forest land in Sarawak next year . Lingui has a gross area of 721,000  hectares of forest concession in Sarawak and about 35,000 hectares of forest  plantation in New Zealand.  "We are focusing on reforestation here (Sarawak), because the maturity  period for the trees in Malaysia is shorter, which is only 10 years  compared with our forest plantation in New Zealand, which takes 27  years to mature," said Group Managing Director Yaw Chee Ming. The cost of reforestation is between RM4,000 and RM5,000 per hectare,  he added. "So far we have planted about 30,000 hectares and we target  to plant between 10,000 and 15,000 hectares, in order to increase our  production," he said. Lingui remained cautious as demand for timber normalised and  consolidation was expected to take place among industry players.  "There is overstocking of plywood in Japan with the initial spike in  plywood imports with no major reconstruction activities taking place,"  said Lingui. (Bernama)

ARK Resources will be removed from the PN17 company list effective today.  The company said with the completion of its regularisation plan, it had  regularised its financial condition and no longer triggers any of the criteria  under PN17. (BT)

The iProperty Group has launched Asia-Pacific's largest dedicated  commercial and industrial property portal, iProperty said  the new website has the largest database of commercial and industrial property  listings in the region with over 150,000 current listings, a figure expected to  grow to over 500,000 by the end of 2012.  CEO Shaun Di Gregorio said data across Malaysia, Singapore, Hong  Kong and Indonesia between 2010 and 2011 shows an upward trend in  searches for commercial property. "With the government introducing  cooling measures across Asia-Pacific and the fear of possible recession  in USA and Europe and assumption of that impacting Asia-Pacific, the  residential sector is softening as investors adopt a 'wait-and-see  approach'. (Bernama)

Scicom (MSC) Bhd is set to start its business operation in Sri Lanka and  Indonesia by early 2012. Its Group CEO, Leo Ariyanayakam said the company  which offered its services to multinational companies in the Malaysia was going  into these countries as there was a rising demand for customer services in these  emerging markets. "We are going into these areas on the basis of confirmed business, we  are not being speculative," Leo said. He said the company had already  set up centres in the two countries, but full force operations will only be  realised within the next financial year.  "We have a whole series of products and services that allow us to  expand not only in Malaysia but also across these two geographies as  well. "We are setting up in Indonesia because it is a booming market  with 240m population and there is a huge expectation and demand for  customer services," he said. On its centre in Indonesia, he said Scicom  expected to leverage on its association there as Telkom Indonesia was  the company's largest shareholder. (Bernama)

Dayang Enterprise Holdings (DEHB) expects further growth after chalking  up successful quarters on strong order book of RM1.5bn until 2016. Its  executive chairman, James Ling, said the company recorded a strong second  quarter on Petronas Carigali deal. The primary enabler of DEHB’s success is  Petronas’ Vendor Development Programme aimed at providing local contractors  with incentives and the confidence to increase their capital base. (Bernama)

Syarikat Prasarana Negara Bhd (Prasarana) has announced changes to  its Senior Leadership Team (SLT). The move is to further strengthen the  management team as the group prepares for the second phase of its  transformation plan.  With  effect from Nov 1, former General Manager of the My Rapid  Transit (MRT) project, Amiruddin Maaris, has been appointed the New  Group Director for Infrastructure Services Division. Announcing the  changes, Prasarana Group Managing Director Datuk Shahril Mokhtar  said Amiruddin, 42, takes over from Zohari Sulaiman, who has been  appointed the group director for the Bus Division. The position was  formerly held by Datuk Mohamad Hazlan Mohamed Hussain.  (Bernama)

Bursa Malaysia Securities has deferred the decision  to suspend and delist the  securities of Tricubes Bhd. M&A Securities Sdn Bhd, on behalf of the board of  directors of Tricubes, had on Oct 28 submitted an application to Bursa  Securities to extend the submission timeframe up to Dec 31. Late last year, the  company was an affected listed issuer pursuant to Guidance Note 3 of the ACE  Market listing requirements.(Starbiz)

Iris Corp is currently engaging in preliminary discussions with its Chinese  partners with regard to a “food waste to fertiliser technology” project. It has not  signed any MoU in relation to the project. Iris was denying a report in a Chinese  daily that it had formed a consortium with 65% stake holding in a waste water  treatment plant in China. (Star Biz)

The  Malaysian Iron and Steel Industry Federation (Misif) is opposing  Megasteel Sdn Bhd’s proposed reduction in import duty from 25% to 15% or  RM300/mt whichever is higher on all flat steel products combined with the  abolishment of duty exemption.  Misif has rejected Megasteel’s proposal and has conveyed its position to  Miti (Ministry of International Trade and Industry). The federation said  that the reduction in duty would be welcomed but the abolishment of  duty exemption would be detrimental to many sectors of the  downstream flat steel players. (Financial Daily)

20111104 1040 Local & Global Economic Related News.

Malaysia is confident the  investment imbalance with China can be  narrowed soon if it continues to engage Chinese enterprises not only from big  cities, but also from the second- and third-tier cities like Chengdu and Nanning.  Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed,  said Malaysia has nearly US$6bn worth of investments in China, while China  invested only about US$500m in Malaysia.  Malaysia was taking three major initiatives to engage the Chinese more  effectively.  First, the ministry was committed to undertake more investment and  trade missions to China, at least twice a year. Second, the  newly-established Malaysia-China Economic Cooperation  Working Group (ECWG) to identify various bilateral cooperation  projects in nine areas. The ECWG will draw up a five-year development  programme by the middle of next year for implementation.  The third initiative was that Malaysia and China would work closely to  ensure the successful establishment of the Malaysia-China Qinzhou  Industrial Park.  On bilateral trade, Mustapa said, both countries had reaffirmed their  commitment to double the value within five years following the  implementation of several bilateral initiatives. Trade between Malaysia  and China totalled US$45.6bn last year. (Bernama)

The corporate bond market maintained its strong momentum in 3Q11 with  RM21.41bn issuance, taking the total issuance to RM52.6bn (+12.6% yoy) for  the first nine months. A new peak was reached in Aug, when RM13.3bn of debt  papers was issued  - the highest monthly issuance so far this year, said RAM  Ratings Services Bhd.  Sukuk issuance almost tripled year to date to RM42.1bn, accounting for  73% of total bond issuance as at end-Sep 11.  RAM said it expects bond issuance to be on track towards achieving its  projection of RM60bn for the full year. (Bernama)

A Competitions Appeal Tribunal will be set up at the end of this year, said  Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail  Sabri Yaakob. The tribunal, which would  start functioning once the  Competitions Act 2010 is enforced on 1 Jan 12, would hear appeals against cases  that had been decided by the Malaysian Competitions Commission (MyCC), he  said. (Bernama)  

China: Non-manufacturing industries grew at a slower pace in October as weakness in investment in real estate and railways offset strength in consumer demand, a survey indicated. A purchasing managers' index fell to 57.7 from 59.3 in September, the China Federation of Logistics and Purchasing said on its website. The gauge, released with the statistics bureau, includes construction. (Source: Bloomberg)

India: Services industry moderated in October for a third straight month after the central bank's record interest-rate increases. The Purchasing Managers' Index fell to 49.1 from 49.8 in September, HSBC Holdings Plc and Markit Economics said in an e-mailed statement. Readings above 50 indicate expansion. (Source: Bloomberg)

Australia: Retail sales advanced in September for a third straight month, led by spending on household goods and at restaurants. Sales gained 0.4% MoM, when they rose 0.6% MoM. (Source: Bloomberg)    

Thailand: Thai manufacturing falls as floods threaten slump in production
Thailand’s industrial output fell unexpectedly in September as the global recovery faltered, with the worst floods in almost 70 years threatening to exacerbate the slowdown. The industrial production index declined 0.5% from a year earlier, after a revised 6.8% gain in August, the Office of Industrial Economics said in a statement. The Bank of Thailand lowered its economic growth forecasts for 2011 last week after floods swamped about 10,000 factories and stopped production at companies including Honda Motor Co. Thailand serves as a production hub for Japanese carmakers and electronics firms. (Bloomberg)

India: India’s food inflation quickens to 12.21%, a nine-month high
India’s food inflation accelerated to the highest level in nine months after prices of vegetables, milk and meat climbed. An index measuring wholesale prices of agricultural products gained 12.21% in the week ended 22 Oct from a year earlier, the commerce ministry said in a statement in New Delhi. It rose 11.43% the previous week. Still, the Reserve Bank of India has signaled a pause in its monetary tightening as Europe’s debt crisis threatens economic growth, saying past interest-rate increases will slow consumer demand. (Bloomberg)

South Korea: Lawmakers delay passage of trade pact with US
South Korea’s ruling party postponed voting on a free-trade agreement with the US for at least a week to get more support from opposition lawmakers who had physically blocked the pact’s passage through committee.

The pact, initially agreed on by presidents George W. Bush and Roh Moo Hyun more than four years ago, was delayed as their successors Barack Obama and Lee Myung Bak sought wide support for the deal. While Obama signed the agreement into law on 21 Oct after Congress passed it earlier that month, South Korea’s main opposition Democratic Party has stalled the government’s efforts since June to put the bill to a vote. (Bloomberg)
UK: King says BOE staff won’t need ‘vast’ pay for regulatory roles
Bank of England Governor Mervyn King said the bank won’t need to offer “vast sums” in compensation to build up its regulatory staff as it’s given new powers to oversee the financial system. King made the remarks as he answered questions on the government’s proposals to enact the most sweeping reforms to banking regulation since 1997. They include abolishing the Financial Services Authority and returning to the central bank duties to supervise lenders. (Bloomberg)

EU: Europe’s debt crisis deepens amid speculation Papandreou to quit
Europe’s financial turmoil deepened, dominating a Group of 20 summit amid speculation Greek Prime Minister George Papandreou will quit after his call for a referendum on an international rescue split his party and cut off aid. Papandreou, whose term runs to 2013, will step down today and propose a coalition government headed by former European Central Bank Vice President Lucas Papademos. The uproar came less than 24 hours after the leaders of Germany and France turned the referendum on a week-old bailout package into a vote on whether Greece stayed in the euro area, cutting off assistance in the meantime. (Bloomberg)

E.U: ECB unexpectedly cuts rate as Draghi rules out debt backstop. The European Central Bank unexpectedly cut interest rates at Mario Draghi's first meeting in charge even as the new president signaled no plans to backstop the region's most vulnerable nations as the escalating debt crisis threatens to splinter the euro region. "What makes you think that becoming the lender of last resort for governments is what you need to keep the euro region together?" Draghi asked reporters in Frankfurt. "That is not really in the remit of the ECB. The remit of the ECB is maintaining price stability in the medium term." (Source: Bloomberg)

European Central Bank President Mario Draghi said that  Europe is  heading towards a “mild recession.” (Bloomberg)  

US: Consumers are most pessimistic on economy since recession
Consumer confidence declined last week to its lowest level since the depths of the recession in the first quarter of 2009. The Bloomberg Consumer Comfort Index fell to minus 53.2 in the week ended 30 Oct, the second-lowest reading in almost 26 years of data, from minus 51.1. The gauge has held below minus 50 for six of the past seven weeks, a period unmatched even during the 2008-2009 economic slump. Unemployment around or above 9% for the last 30 months, stagnating incomes and falling home values may limit the pace of household spending into 2012. (Bloomberg)

US stocks rally after ECB cut as Greece moves toward bailout
US stocks advanced, sending the Standard & Poor’s 500 Index higher for a second straight day, as Greece moved closer to accepting a bailout and the European Central Bank unexpectedly lowered interest rates. Qualcomm jumped 7.5% as the biggest maker of mobile-phone chips forecast sales that beat analysts’ projections. Kraft Foods added 3.3%t after raising its earnings estimate. Estee Lauder jumped 18% after the maker of Clinique skin care raised its profit forecast, boosted its dividend and set plans for a stock split. The S&P 500 climbed 1.9% to 1,261.15 at 4 pm in New York, extending its two-day gain to 3.5% and erasing its 2011 decline. The Dow Jones Industrial Average rose 208.43 points, or 1.8%, to 12,044.47. (Bloomberg)

U.S: Service industries cool, sentiment declines supporting Federal Reserve Chairman Ben S. Bernanke's forecast that the economic recovery will be "frustratingly slow." A gauge of non-manufacturing industries making up about 90 %of the economy fell to 52.9 in October from 53 in September. (Source: Bloomberg)

U.S: Orders to factories unexpectedly increased in September. Bookings climbed 0.3% MoM after a revised 0.1% MoM gain in August that was initially estimated as a drop, figures from the Commerce Department showed. (Source: Bloomberg)

U.S: Jobless claims fell to a one-month low last week. Jobless claims fell by 9,000 to 397,000 in the week ended Oct. 29, the fewest in a month, Labor Department figures showed. The total number of people on unemployment benefits rolls decreased to a six-month low. (Source: Bloomberg)

US worker productivity rose in 3Q for the first time this year as companies  tried to cut costs following a slowdown in growth. The measure of employee  output per hour increased at a 3.1% annual rate, following declines in each of  the previous two quarters, figures from the Labor Department showed.  (Bloomberg)

US unit labor costs in nonfarm businesses fell 2.4% in 3Q11. Unit labor costs  rose 1.2% over the last four quarters, because the increase in hourly  compensation was greater than the increase in output per hour. (Bloomberg)

US initial jobless claims totaled 397,000 in the week ended 29 Oct (406,000  in the prior week), the Labor Department reported. Economists estimated a  reading of 401,000. The number of  continuing unemployment benefit  claims fell 15,000 to 3,683,000 in the week ended 22 Oct. (AFP, WSJ)

The  US Institute for Supply Management’s index of  non-manufacturing businesses eased to 52.9 in Oct (53 in Sep). Economists  projected a reading of  53.5. (Bloomberg)

The number of Americans living in neighborhoods beset by extreme poverty surged in the last decade, erasing the progress of the 1990s, with the poorest  areas growing more than twice as fast in suburbs as in cities. At least 2.2m more  Americans, a 33% jump since 2000, live in neighborhoods where the poverty  rate is 40% or higher, according to a study released by the Brookings Institution.  (Bloomberg)

20111104 1019 Global Market Related News.

Asia Stocks Rise, Snapping 4-Day Losing Streak (Source: Bloomberg)
Asian stocks advanced for the first time in five days as Greece moved closer to accepting a bailout and the European Central Bank unexpectedly lowered interest rates, reducing concern that the debt crisis will cause a credit crunch. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest publicly traded lender, gained 1.8 percent in Tokyo as Greece scrapped a referendum on Europe’s bailout package. Komatsu Ltd. (6301), Asia’s biggest maker of construction equipment by market value, surged 6.3 percent after a report showed orders at American factories unexpectedly increased in September. BHP Billion Ltd., the world’s largest mining company, jumped 3.6 percent as metal and oil futures rose.
“There’s less risk today because people are little less concerned that Greece will run on its own direction,” Michael Vogelzang, chief investment officer at Boston Advisors LLC, told Bloomberg Television. “It sounds like there is some progress and the markets moved up. We think the ECB moves were helpful. It’s better to aggressively attack these issues than sit idly by.”

China’s Stocks Rise, Extend Weekly Gain, on Europe, Looser Policy Outlook (Source: Bloomberg)
Chinese stock-index futures rose, signaling gains for the benchmark index, after Greece signaled it won’t hold a referendum on a bailout package and investors speculated China will take more measures to boost the economy. Futures on the CSI 300 Index (SHSZ300) expiring in November, the most active contract, gained 0.8 percent to 2,776.80 as of 9:16 a.m. local time. Jiangxi Copper Co. and coal producer China Shenhua Energy Co. may rise on higher raw-material prices. China Vanke Co., the nation’s biggest listed property developer, may decline after sales fell 33 percent in October. Asian stock markets climbed as Greece moved closer to accepting a bailout and the European Central Bank unexpectedly lowered interest rates.
“The rate cut and recent progress on the Greek debt problem help local investors psychologically by increasing their appetite for risk assets,” said Zhang Ling, general manager at Shanghai River Fund Management Co. “Domestically, the period for policy over-tightening is over and that’ll help the economy get on a smooth track and is positive for stocks.”

Japanese Stocks See First Gain in Four Days on Greece, U.S. Factory Orders (Source: Bloomberg)
Japanese stocks rose for the first time in four days after the European Central Bank unexpectedly lowered interest rates and Greece signaled it won’t hold a referendum on a bailout package. Honda Motor Co., Japan’s second-largest carmaker by market value, jumped 4.3 percent. Mitsubishi Corp. (8058), Japan’s biggest commodities trader by revenue, climbed 2.9 percent after prices for oil and metals advanced. Komatsu Ltd., Asia’s No. 1 maker of heavy machinery by market value, jumped 5.1 percent after U.S. factory orders unexpectedly increased. The Nikkei 225 (NKY) Stock Average rose 1.4 percent to 8,758.15 as of 10:38 a.m. in Tokyo. The broader Topix Index advanced 1.5 percent to 749.26, with more than three shares rising for each that fell.

Stocks in U.S. Rise After ECB Rate Cut as Greece Moves Closer to Bailout (Source: Bloomberg)
U.S. stocks advanced, sending the Standard & Poor’s 500 Index higher for a second straight day, as Greece moved closer to accepting a bailout and the European Central Bank unexpectedly lowered interest rates. Qualcomm Inc. (QCOM) jumped 7.5 percent as the biggest maker of mobile-phone chips forecast sales that beat analysts’ projections. Kraft Foods Inc. (KFT) added 3.3 percent after raising its earnings estimate. Estee Lauder Cos. jumped 18 percent after the maker of Clinique skin care raised its profit forecast, boosted its dividend and set plans for a stock split. The S&P 500 climbed 1.9 percent to 1,261.15 at 4 p.m. in New York, extending its two-day gain to 3.5 percent and erasing its 2011 decline. The Dow Jones Industrial Average increased 208.43 points, or 1.8 percent, to 12,044.47 today.
“They’re pushing the Greeks to the wall,” Peter Sorrentino, a senior fund manager at Huntington Asset Advisors in Cincinnati, which oversees $14.5 billion of assets, said in a telephone interview. “It’s a sobering up moment. On top of that, the ECB’s decision to cut rates will take some of the pressure off of the upcoming financing for the Spanish and Italian markets.”

European Stocks Advance on ECB Interest Rate Cut and Optimism Over Greece (Source: Bloomberg)
European stocks advanced after the euro-area central bank unexpectedly cut the benchmark interest rate and Greek Prime Minister George Papandreou signaled he won’t call a referendum on the latest bailout package. National Bank of Greece SA led the country’s lenders higher. Swiss Re Ltd. and Man Group Plc (EMG) gained more than 2 percent after reporting better-than-expected earnings. Cable & Wireless Communications Plc (CWC) jumped 7.8 percent after saying restructuring is ahead of schedule. The benchmark Stoxx Europe 600 Index climbed 2.1 percent to 242.2 at the close in London, after the European Central Bank’s rate decision. The stocks earlier erased their losses amid speculation that Greece will cancel the referendum asPapandreou’s ruling Pasok party split over the question.

Dollar Holds Two-Day Decline Versus Euro Before Reports on U.S. Employment (Source: Bloomberg)
The dollar held a two-day drop versus the euro before data forecast to show U.S. jobs growth slowed and the unemployment rate was unchanged, supporting the case for the Federal Reserve to consider monetary easing. Europe’s common currency climbed versus the greenback yesterday, paring this week’s drop, after Greek Prime Minister George Papandreou signaled he won’t call for a referendum on a bailout plan. The yen is set for its first five-day drop against the dollar in three weeks after Japan on Oct. 31 sold its currency to curb appreciation. Australia’s dollar declined against the yen after its central bank cut forecasts for economic growth and inflation for the next two years.
“If you get a better-than-expected payrolls result, but it’s not good enough to bring the unemployment rate down, then that will probably keep expectations that there may be further policy easing down the track alive,” said John Kyriakopoulos, Sydney-based head of currency strategy at National Australia Bank Ltd. That “tends to hurt the U.S. dollar,” he said.

U.S. Service Industries Cool in Support of Fed Forecast for Slow Recovery (Source: Bloomberg)
Service industries in the U.S. expanded at a slower pace and consumer confidence plunged, supporting Federal Reserve Chairman Ben S. Bernanke’s forecast that the economic recovery will be “frustratingly slow.”  A gauge of non-manufacturing industries making up about 90 percent of the economy fell to 52.9 in October from 53 in September, the Tempe, Arizona-based Institute for Supply Management said today. A reading above 50 signals growth. The Bloomberg Consumer Comfort Index dropped to the lowest level since the depths of the recession in 2009. The figures, along with European Central Bank President Mario Draghi’s forecast for a “mild recession” in Europe, underscored Bernanke’s warning yesterday that the U.S. economy faces “significant downside risks.” At the same time, a decline in jobless claims and an increase in factory orders reported today showed the economy is maintaining its expansion.

Productivity in U.S. Climbs for First Time This Year as Firms Cut Costs (Source: Bloomberg)
The productivity of U.S. workers rose in the third quarter for the first time this year as companies tried to cut costs following a slowdown in growth. The measure of employee output per hour increased at a 3.1 percent annual rate, following declines in each of the previous two quarters, figures from the Labor Department showed today in Washington. Expenses per employee fell at a 2.4 percent rate after a 2.8 percent gain in the second quarter. Employers sought to cut costs by keeping payrolls down and squeezing more output from existing staff. Lower labor expenses, which account for about two-thirds of the cost of producing a good or service, may help hold down inflation, giving Federal Reserve leeway to take additional steps if needed to spur the world’s largest economy.

Jobless Claims Fell to a One-Month Low (Source: Bloomberg)
Fewer Americans filed applications for unemployment benefits last week, signaling limited progress in the labor market. Jobless claims fell by 9,000 to 397,000 in the week ended Oct. 29, the fewest in a month, Labor Department figures showed today in Washington. The median forecast of 49 economists in a Bloomberg News survey called for a drop to 400,000. The total number of people on unemployment benefit rolls decreased to a six-month low. Fewer dismissals, a precursor to bigger gains in payrolls, may help sustain the spending by households that accounts for about 70 percent of the economy. Federal Reserve officials yesterday projected that it will be 2013 before the jobless rate drops below 8 percent.
“The trend remains very constructive,” said Eric Green, chief market economist at TD Securities Inc. in New York, who forecast 395,000 claims. “It’s back below 400,000, which seems to be the pivot point in terms of a strengthening labor market as opposed to a weakening one.”

Treasuries Head for Weekly Gain on U.S. Jobs Outlook, Europe Debt Crisis (Source: Bloomberg)
Treasury 10-year notes headed for their steepest weekly gain since August as European leaders struggled to contain the region’s debt crisis and before a report that may show hiring in the U.S. slowed. Banks are becoming more reluctant to lend as investors seek the safest assets, yields indicate. The difference between the rates for three-month dollar loans and the overnight index swap widened to 35 basis points, a 28-month high. The spread measures the gap between the London interbank offered rate and the so- called OIS, or what traders expect the Federal Reserve’s target for overnight loans to average over the term of the contract. “We’re bullish on Treasuries,” said Hiromasa Nakamura, a senior investor at Mizuho Asset Management Co. in Tokyo, which oversees the equivalent of $42.2 billion and is a unit of Japan’s second-largest bank. “The flight to quality will continue. The U.S. and European economies are very weak.”

China to Commit on Currency Flexibility: Brainard (Source: Bloomberg)
China will make commitments on currency flexibility as part of a Group of 20 action plan that will call upon export-oriented economies to boost domestic consumption, said Lael Brainard, U.S. Treasury undersecretary for international affairs. Brainard said China is “playing a quite constructive role” in conversations that will commit trade “surplus countries” to stepping up domestic consumption. Currency flexibility “will be part of the action plan” announced at the end of the summit, Brainard said at a briefing in Cannes, France. G-20 leaders are meeting in Cannes to discuss Europe’s efforts to deal with its debt crisis and update their plans on rebalancing the global economy.
Chinese President Hu Jintao called for reform of the international monetary system to be advanced “in a steady manner,” according to the text of remarks he made to French President Nicolas Sarkozy at the G-20 meeting.

Deflation Driving Up Real Yield Hampers Effort to Weaken Yen: Japan Credit (Source: Bloomberg)
Japan’s slide back toward deflation means bond investors are getting some of the highest returns among developed nations even with the world’s lowest yields. Annual inflation slowed to zero in September, meaning investors in the nation’s benchmark 10-year securities receive the full 0.995 percent yield. That’s the highest so-called real yield for any Group of Seven nation except Italy’s 2.79 percent. The Bank of Japan cut its inflation forecast last week and said it would buy more government bonds to underpin an economic recovery being threatened by the yen’s surge to a postwar record. The government intervened on Oct. 31 to weaken the currency for the third time this year. With the Federal Reserve discussing more steps to spur its economy and Treasuries yielding less than U.S. inflation, Japan’s efforts may not curb the yen’s strength.

G-20 Urges EU to Quell Crisis as Greece Teeters (Source: Bloomberg)
World leaders expressed impatience and irritation with Europe’s inability to defeat its two-year financial crisis as they urged swift resolution for the sake of the global economy. With Greece’s debt-ridden government at risk of collapsing as soon as today, Group of 20 chiefs meeting in Cannes, France, yesterday pushed European authorities to flesh out and enact a week-old rescue plan that has already shown signs of unraveling. “We are grappling with a lack of confidence in markets that leaders will act,” Australian Prime Minister Julia Gillard said in the French seaside resort. “It is therefore very important for leaders to act.” Such calls -- echoed by the U.S., Britain, China and Russia -- highlight international disappointment that Europe missed the G-20’s deadline of this week to deliver a fix for its fiscal woes. German Chancellor Angela Merkel and French President Nicolas Sarkozy sought to regain the initiative by keeping aid for Greece on ice and demanding Italy accelerate austerity.

Draghi Chooses ECB Rates Over Printing Press (Source: Bloomberg)
European Central Bank President Mario Draghi signaled he’d rather use interest rates than the printing press to bolster growth as the debt crisis drags the euro-area economy toward recession. Chairing his first policy meeting after succeeding Jean- Claude Trichet on Nov. 1, Draghi unexpectedly cut the benchmark rate yesterday by a quarter point to 1.25 percent and left the door open to a further move. At the same time, he ruled out ramping up ECB bond buying to reduce governments’ borrowing costs, saying the program is “temporary” and “limited.” “It’s back to basics on the crisis fighting; rates rather than bond purchases,” said Julian Callow, chief European economist at Barclays Capital in London. “He must be the first ECB President to utter the word ‘recession’ before it has actually happened.”

Papandreou Struggles to Hold on To Power (Source: Bloomberg)
Prime Minister George Papandreou struggled to hold on to power after Greece’s largest opposition party rebuffed his overtures to form a national government, raising the prospect of elections that could delay aid needed to prevent default. Opposition leader Antonis Samaras rejected sharing power with Papandreou and called on the premier to quit. Papandreou, 59, scrapped a referendum on an accord with the European Union to avert a split in his party before a confidence vote scheduled for midnight tonight. “I never excluded any topic from the discussion, not even my own position,” Papandreou told lawmakers in Parliament. “I am not tied to a particular post. I repeat I am not interested in being re-elected but just in saving the country.”

European Chiefs Pressed for Debt-Crisis Action (Source: Bloomberg)
Europe’s debt crisis dominated and distracted a summit of world leaders as Greece’s government veered towards collapse and Italy came under renewed pressure to prove its credit-worthiness. As Group of 20 chiefs began talks in the French resort of Cannes, their focus was on Athens where Prime Minister George Papandreou was clinging to power after abandoning a referendum that triggered a suspension of European aid. Amid concern Italy may be the next domino to fall as its bond yields jumped to an euro-era record, Prime Minister Silvio Berlusconi was pushed by Germany and France to accelerate an austerity drive. Europe’s failure to fix two years of turmoil drew rebukes from foreign leaders concerned global economic growth is under threat. The European Central Bank offered relief with an unexpected interest-rate cut although its new president, Mario Draghi, said a euro-area recession is looming.

U.K. Faces 50% Chance of Recession as Europe Curbs Recovery, Niesr Says (Source: Bloomberg)
The U.K. economy will grow less than previously forecast this year and next and there is a 50 percent chance it will slip back into recession, the National Institute for Economic and Social Research said. The economy faces “significant downside risks,” Niesr said in a report published in London today as it cut its forecast for 2012 by more than half. It sees growth of 0.9 percent this year and 0.8 percent next year, down from 1.3 percent and 2 percent respectively in August. “Recent poor performance has been driven by weak domestic demand, rather than developments in the euro area, but going forward these too will reduce economic growth,” it said. “The baseline forecast assumes a successful resolution of the euro area crisis; there are therefore significant downside risks.”

RBA Cuts Australia Growth, CPI Forecasts (Source: Bloomberg)
The Reserve Bank of Australia cut its forecasts for economic growth and inflation for the next two years as financial turmoil abroad makes businesses more reluctant to hire and consumers cautious about spending. “The mining-related parts of the economy are growing strongly,” the central bank said today in its quarterly monetary policy statement. “In contrast, in a number of other industries, the high exchange rate, the fading injections from the earlier fiscal stimulus and changes in household spending and borrowing behavior are contributing to subdued conditions.” The RBA sees growth of 4 percent in the 12 months to June 30, 2012, down from its Aug. 5 estimate of 4.5 percent. Consumer prices will rise 2 percent over the period, from a previous prediction of 2.5 percent; underlying inflation is predicted at 2.5 percent from a previous 3 percent, the central bank said. The estimates are based on the overnight cash rate target remaining unchanged, it said.

Indonesia Economic Growth Likely Accelerated, Buoyed by Domestic Spending (Source: Bloomberg)
Indonesia’s economic growth probably quickened last quarter as domestic spending withstood the impact of a weakening global recovery that prompted the central bank to cut interest rates for the first time in more than two years. Gross domestic product climbed 6.6 percent from a year earlier, compared with a 6.49 percent pace in April through June, according to the median of 16 estimates in a Bloomberg News survey ahead of the data on Nov. 7. The pickup may be insufficient to dissuade policy makers from lowering rates for a second meeting, as Europe’s worsening debt crisis and faltering U.S. growth threaten exports. Bank Indonesia will cut borrowing costs by a quarter of a percentage point to 6.25 percent on Nov. 10, seven of 16 economists said in another survey, with the rest predicting no change.

Yingluck Banks on $26B Plan After Flood ‘Stumble’ (Source: Bloomberg)
Thai Prime Minister Yingluck Shinawatra plans to win back confidence in her 12-week-old government with a reconstruction package after Bangkok residents blamed her for an inadequate response to the country’s worst floods since 1942. “The floods may be a blessing in disguise for the government to wake up and do the things it needs to do to improve this country,” Energy Minister Pichai Naripthaphan, who has proposed spending as much as 800 billion baht ($26 billion) on recovery efforts, said in a phone interview. “It’s just like a kid who starts walking and a strong wind blows. You might stumble, but then you need to get up and start walking again.”
Mixed messages over the severity of the flooding, which fueled panic in Bangkok, threaten to erode Yingluck’s popularity and energize opponents whose protests led to the demise of her brother, Thaksin Shinawatra, five years ago. To regain the trust of voters who have seen floods swamp their homes and shutter factories employing more than 600,000 workers she will have to rebuild damaged roads, bridges, homes and factories.

20111104 1018 Global Commodities Related News.

Corn (Source: CME)
US corn futures end higher on lack of farmer selling and outside market support. Farmers have been content to let supplies sit in their bins rather than sell at prices they think are unlikely to decline, traders say. Uncertainty about the US crop is also underpinning the market, although traders say worries about a supply crisis from earlier in the year have faded. Prices were also supported by rallies in numerous asset classes today. Meanwhile, weekly export sales were at the high end of expectations, though Jerry Gidel of North America Risk Management Services notes expectations were low. CBOT December corn ends up 8 1/2c at $6.53 1/2 a bushel.

Wheat (Source: CME)
US wheat futures end higher, joining other agricultural commodities in rallying amid support from higher equities. Wheat was also led higher by corn and soybeans, although wheat had its own support from worries about the hard-red winter wheat crop because of drought in the southern Plains. Lack of farmer selling also helped. However, export demand remains poor, as evidenced by weak weekly sales reported, and world supplies are considered ample. CBOT December wheat ends up 12 1/2c at $6.36/bushel while KCBT December rises 7c to $7.20 and MGEX December adds 6 3/4c to $9.17.

Wheat Plunging as Decade-High Stockpiles Ease World Shortages: Commodities (Source: Bloomberg)
Wheat is heading for the biggest slump in three years as the second-largest harvest on record swells stockpiles, easing shortages that drove global food costs to an all-time high. Prices that plunged 21 percent to $6.295 a bushel this year in Chicago will probably drop as low as $5.90 before the end of December, according to the median estimate of nine analysts and traders surveyed by Bloomberg. Supply in the 12 months ending June 30 will expand 5 percent to 684 million metric tons, boosting inventories to the highest in a decade, the London- based International Grains Council estimates. Production is expanding after last year’s 47 percent price rise led farmers to plant more grain, while Russia and Ukraine recovered from drought that ruined crops. Cheaper wheat will reduce strains caused by rising corn and rice prices and add to pressure on United Nations-monitored food costs that have declined 9 percent from a record in February.

FAO:Higher Supply,Strong Dollar Led To Wheat Price Falls (Source: CME)
World food prices fell to an 11-month low in October, led by sharp price declines in cereals, oils, sugar and dairy products, the United Nation's food body said. The Food and Agriculture Organization's food price index, which measures the monthly change in international prices of a basket of food commodities, averaged 216 points in October, down 4% on the prior month. Still, the body warned that world food prices are "generally higher than last year and remain very volatile." The U.N.'s food index, which has witnessed declines since June, was 9% lower in October than its historic high of 238 points attained in February. "An improved supply outlook for a number of commodities and uncertainty about global economic prospects is putting downward pressure on international prices," the FAO said. International grain prices, as measured by the FAO's cereal index, fell 5% in October to an average of 232 points.
Despite recent severe flooding in Thailand affecting rice production, international price fluctuations have been limited by large reserves, the FAO said. World cereal inventories are estimated to increase by 3.3%, from their reduced opening levels, to 507 million metric tons by the end of the season in 2012, the food agency said. "At this level, the world cereal stocks-to-use ratio for 2011/12 is expected to approach 22%, up only slightly from 2010/11," it said. The FAO sugar price index fell 5% since September to 361 points in October, the FAO said, due to large global supplies. Meanwhile, the FAO oils/fats price index pulled back 6% to 223 points, while the meat and dairy indexes also saw losses.

Rice (Source: CME)
U.S. rice futures continue to slump, ending lower on weak demand and technical selling. Market fell even as most other agriculture commodities rallied. "Poor export demand is offsetting a shorter U.S. crop and flood losses in Thailand," Arkansas Farm Bureau says. CBOT Nov. rice ends down 22c, or 1.4%, to $15.92 per hundredweight. That's down from an intraday high of $17.10 on Oct. 25.

Thai Rice Exports Seen Plunging 50% on Government Buying Program, Flooding (Source: Bloomberg)
Rice shipments from Thailand, the largest exporter, will drop by half from November to January as a state-buying policy raises costs and flooding disrupts transport, according to the Thai Rice Exporters Association. Exports may slump to 500,000 metric tons per month from an average of 1 million tons in the first nine months as state purchases lift local prices and make Thai rice less competitive, Honorary President Chookiat Ophaswongse said by phone yesterday. Thailand has implemented a state rice-buying policy at guaranteed prices since Oct. 7 to lift rural incomes even as the worst floods since 1942 wreak damage on farms and threaten Bangkok. Lower Thai exports may benefit rival growers including Vietnam and India, the second- and third-largest exporters. “The state policy will cause rice exports to fall by a greater extent than the effect of the flooding,” Chookiat said by phone. About 50,000 tons may be delayed by about a month as floods disrupt waterway and road transport, he said.

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.

Algeria scraps tax on durum wheat imports
ALGIERS, Nov 2 (Reuters) - Algeria's parliament on Wednesday approved a government measure to remove a tax imposed last year on private durum wheat imports, in apparent response to a drop in the domestic cereal harvest.
The tax was imposed in a supplementary budget for 2010 after a record cereals crop of 6.1 million tonnes the previous year.
Informa pegs 2011 US corn yield 149.5 bu/acre
CHICAGO, Nov 2 (Reuters) - Memphis-based analytical firm Informa Economics on Wednesday pegged 2011 U.S. corn yield per acre at 149.5 bushels per acre, unchanged from its outlook in October, trade sources said.
Informa forecast U.S. corn production at 12.549 billion bushels, up from the firm's October estimate for 12.519 billion.

Cuban food output edges upward, crisis persists
HAVANA, Nov 2 (Reuters) - Cuba registered big increases in rice and bean production through September as non-sugar agricultural production increased 7.2 percent, compared with the same period in 2010, the National Statistics Office reported this week.
Produce output was up 10.1 percent and livestock and related products 4.2 percent.

Argentina Hopes To Start Exporting Corn To China In Few Months (Source: CME)
Argentina hopes to start exporting corn to China in a few months but is still finalizing details of a bilateral market access agreement, a senior Argentinian official said. Soaring feed demand and depleted corn reserves have brought China back to the global grain market after a 15-year hiatus, and Argentinian authorities have been trying to cement agreements to supply the world's second-largest corn consumer. Lorenzo Basso, Argentinian Secretary of Agriculture, Livestock and Fisheries, told reporters that he hoped the bilateral pact would be signed by the end of the year, which would free China's potentially massive corn market for Argentina. The U.S. dominates China's corn trade--it accounted for 97% of the market in the first nine months this year. Argentina is the world's second-largest corn exporter after the U.S. China is only the U.S.'s eighth-largest import market by volume globally, mostly due to Beijing's reluctance to give up its policy of grain self-sufficiency.
But its demand is expected to rise quickly. Last year, China's corn imports grew 17 times over 2009 to 1.6 million metric tons. The state-backed China National Grain and Oils Information Center estimates this demand could reach 5 million tons this crop year that began Oct. 1. Argentina is keen on getting a foothold in the market, for which a bilateral phytosanitary agreement is needed to govern food safety and plant health. "We should be able to sign the agreement [with China] by the end of the year," Basso said. Bilateral trade could commence by March 2012 at the earliest, he said. He also said Argentina is expected to harvest about 25 million tons of corn next year, of which 15 million tons would be available for exports. A trade spat last year brought Argentinian agricultural exports to a halt but Argentina has sought to smooth relations, sending multiple high-level trade and diplomatic missions to Beijing this year.
Chinese companies, including farming giant Heilongjiang Beidahuang Nongken Group, are also working on land deals to develop agriculture in Argentina. Earlier this year, Beidahuang signed an initial agreement with Buenos Aires-based Cresud SA (CRESY) on cooperation in land purchases. Basso declined to comment on a similar deal for Beidahuang to develop farmland in Argentina's Patagonian Rio Negro province, saying the provincial government was taking the lead, but added that he understood the deal was "just in exploratory stages."

Sugar, coffee steady, eyes on Greek euro future
LONDON, Nov 3 (Reuters) - ICE sugar, coffee and cocoa futures were little changed in early trading as investors remained sidelined and focused on concerns over Greece's role in the euro zone.
Raw sugar futures were steady, hemmed in by a firmer dollar as leaders of the world's biggest economies began arriving in France for a G20 summit set to be dominated by the threat of a Greek exit from the euro zone.

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.

Guatemala coffee exports rise in October yr/yr
GUATEMALA CITY, Nov 2 (Reuters) - Coffee exports from Guatemala rose 47 percent in October to 99,301 60-kg bags, the national coffee association said on Wednesday.
The harvesting season in Central America and Mexico, which together produce more than one-fifth of the world's arabica coffee, begins in October and comes to a close in September.

Colombia bets on renovation to recover coffee output
BOGOTA, Nov 2 (Reuters) - A five-year-old campaign to renovate aging coffee trees in Colombia will not help the Andean nation meet its 2011 production target of 9 million bags because many trees were hit by roya fungus, growers and experts said.
Colombia, the world's largest producer of high-quality Arabica beans, has had two years of lower-than-expected coffee production due to bad weather, the spread of the roya fungus and a tree renovation program.

Ivorian cocoa arrivals hit 50,331 tonnes by Oct 23-BCC
ABIDJAN, Nov 2 (Reuters) - Cocoa arrivals at ports in top grower Ivory Coast reached 50,331 tonnes by Oct. 23, down from 89,388 tonnes in the same period a year ago, according to data from Bourse du Cafe et Cacao (BCC) obtained by Reuters on Wednesday.
The figures showed that 20,659 tonnes of beans were declared at the ports of Abidjan and San Pedro from Oct. 17 to Oct. 23 by exporters, down from 47,948 tonnes in the same week of the 2010/2011 season.
Russia's beet sugar output 42 pct up on year - lobby
MOSCOW, Nov 2 (Reuters) - Russia refined 2.6 million tonnes of white sugar from beet from the start of the season in August to Oct. 31, up 42 percent from year-ago volumes, the Russian Sugar Producers' Union industry lobby said on Wednesday.        
Russia officially expects to produce a record 5 million tonnes of sugar from this year's domestic beet crop, although analysts say the final output may be lower. Last year's sugar crop was hit by the worst drought in decades.

Tate and Lyle Sugars urges fairer regime for cane
LONDON, Nov 2 (Reuters) - Tate and Lyle Sugars, which has processed cane sugar in London's east end for over a century, said its Silvertown refinery could ultimately close as a result of EU rules which favour beet sugar processors over cane.
Tate and Lyle Sugars is appealing for a fairer trade regime for the European cane refining industry and is seeking 35 million euros ($49 million) in compensation, arguing European Commission policies forced it to operate well below capacity levels.

Egypt's Government Bans All Cotton Imports -USDA (Source: CME)
Egypt's government has banned all cotton imports for the rest of the 2011-12 crop year, in order to stimulate domestic consumption and protect farmers, the U.S. Department of Agriculture said. Egypt faces a serious crisis, which threatens to break out into large-scale demonstrations, after farmers were encouraged by the government to plant cotton with the expectation of high returns. But, as global cotton production improved and demand fell, Egypt faced cheap imports until the ban was implemented, the USDA Cairo attache said in a report late Wednesday. Egyptian cotton production has soared by 37% this year on the same period a year earlier, according to figures from the USDA. After a meeting between the Egyptian farmers' union and ministers, farmers said that 2 million to 6 million workers could protest against the low prices and demand. Egypt has already refused the delivery of 1,500 metric tons of Greek cotton that has landed in the North African country, the USDA Cairo attache report said.
"The situation has gotten progressively worse on both fronts as importers are buying more imported cotton for quality and price preferences to supply the local textile industry," said the USDA report. One Egyptian cotton trader said he expects the ban on imports to be lifted after about six weeks, when domestic textile companies complete their contracts with local producers. Adil Ezzi, president of the Al Watani Cotton and Agricultural Development Company, said the Egyptian government regularly limits imports when global prices fall. Egypt typically imports about 2.2 million qantars (roughly 9,000 metric tons) of cotton every year on top of its average annual domestic harvest of 3.6 million qantars. Local Egyptian textile manufacturers seek lower-quality cotton from abroad, said Mr Ezzi, because Egypt's high-quality cotton is too expensive for many local processors.
The primary impact has been on purchases of short/medium staple Upper Egypt cotton, but also is affecting long and extra long staple cotton marketing." Global cotton consumption is expected to remain steady during the 2011-12 crop year at 24.6 million tons due to an expected slowdown in economic growth that will hit demand for cotton fiber, the International Cotton Advisory Committee said.

Indonesia approves Genting Oil's NW Natuna project
JAKARTA, Nov 3 (Reuters) - Indonesia has approved an $800 million oil and gas development project on Northwest Natuna block run by Genting Oil Natuna Pte Ltd, a subsidiary of Malaysia's Genting Bhd , the energy minister said on Thursday.
The company plans to start production at the Ande-Ande Lumut field by the end of 2014 at a production rate of 5,000 barrels oil per day (bopd).

UK offshore oil, gas industry could add $600 bln-PwC
LONDON, Nov 3 (Reuters) - Britain's offshore oil and gas industry could make more than $600 billion by 2050 in new revenues if lawmakers adopted new measures to entice investors with a stable fiscal regime, tax breaks and upgrading old infrastructure, a new report says.
"The Government also should view the UK continental shelf as an opportunity for investment and not simply as a 'cash cow' and also acknowledge the need for an attractive, transparent and stable fiscal regime," accounting firm PricewaterhouseCoopers said in the report.

Indonesia's Dec gasoil imports to remain steady from Nov
SINGAPORE, Nov 3 (Reuters) - Indonesian state energy firm Pertamina is expected to import about 3.5 million barrels of high sulphur gasoil in December, same volumes as this month, a source familiar with the matter said on Thursday.
It is expected to secure the volumes mainly through term imports and will likely not enter the spot market, the source said.

Asia 2012 refining profits to fall on new capacity, cooler demand
SINGAPORE, Nov 2 (Reuters) - Asian refiners could earn as much as 20 percent less in 2012 from processing a barrel of crude into fuel than this year's average, as they get pinched between new additions to capacity and expectations of slowing global demand growth.
Reduced earnings may mean complex refineries that are able to process cheaper heavier crudes into cleaner burning fuels will benefit at the cost of older, simpler plants that need more expensive higher quality oil to make such products. Tighter margins for the simpler plants could force them to cut output.

Oil Trades Near 3-Month High After ECB Cuts Rate, Greece Drops Vote Plan (Source: Bloomberg)
Oil traded near a three-month high in New York as signs that Europe will reach an agreement with Greece on its debt reduced concern that faltering global economic growth will limit fuel demand. Futures were little changed after climbing 1.7 percent yesterday. Prices are headed for a fifth weekly gain, the longest streak since April 2009. Greek Finance Minister Evangelos Venizelos told lawmakers in Athens yesterday the country won’t vote on a rescue package. Oil in New York failed to breach its 200-day moving average, which is at $94.84 a barrel today, according to data compiled by Bloomberg. “As we get some probability the Europe situation is being contained then people are willing to put risk back on,” said Ric Spooner, a chief market analyst at CMC Markets in Sydney. “With the prospect of a low-growth economic environment and a still tight supply situation, that still puts a bit of a base under oil.”

Gartman Sees Gold in Euros at Record as Currency Slides: Chart of the Day (Source: Bloomberg)
Gold prices in euros will rise to a record as Europe’s sovereign-debt crisis erodes the appeal of the 17-nation currency and boosts demand for the precious metal as an alternative asset, according to economist Dennis Gartman. The CHART OF THE DAY shows gold has had an inverse relationship to the euro during the past week, as the metal jumped 3.8 percent and the currency slid 2.6 percent. The euro, which has declined in three of the last four months, may fall below $1.30 from about $1.38 yesterday, Gartman said. “The driving force in the gold market is the problems in the euro,” Gartman said in a telephone interview from Suffolk, Virginia, where he publishes his Gartman Letter. “Central banks in Europe and individuals will want to lower their euro holdings and buy gold since no one knows what is happening to the euro. The euro is heading towards parity once again.”

20111104 1017 Soy Oil & Palm Oil Related News.

KUALA LUMPUR (Dow Jones)--Malaysia''s exports grew a stronger-than-expected 16.6% on-year in September, helped by a sharp increase in shipments of palm oil, chemicals and chemical products and liquefied natural gas. Exports totaled MYR58.68 billion ($18.79 billion) in September, the Ministry of International Trade and Industry said in a statement Friday. The September export reading was ahead of the 13.9% on-year rise forecast by 11 economists polled by Dow Jones Newswires.

Soybeans (Source: CME)
US soybean futures end higher, gaining over 2% in value on optimism over euro zone progress and demand. Broad based investor buying across asset classes lifted prices for metal, energy, equities and grain and oilseed futures, analysts say. Easing concerns over the Greece debt situation once Greece appeared to reverse plans for a referendum on its financial bailout, allowed investors to grow confident in buying riskier commodity markets. Rumors of Chinese interest in buying US soy amid firm cash prices at export terminals added fundamental support to spark a relief rally after prices dropped to 3-week lows earlier in the week, analysts add. CBOT Jan soy end up 24 1/2c or 2% at $12.27 1/4.

Soybean Meal/Oil (Source: CME)
Soy product futures rise in step with soaring soybean prices. Rumors of increased export demand for soybeans and soyoil served as the catalyst for the higher prices, analysts say. Soymeal drew support from firm cash values amid slow farmer sales of soybeans, analysts add. CBOT Dec soyoil end up 2.3% at 52.03 cents/pound, and Dec soymeal finished up 1.3% at $314.50/short ton.

U.S. soy exports set for a rebound: Gavin Maguire

--Gavin Maguire is a Reuters market analyst. The views expressed are his own. To get his real-time views on the market, please join the Global Ags Forum. --
CHICAGO, Nov 3 (Reuters) - U.S. soybean prices have been under pressure lately and plumbed one-year lows below $12 a bushel last month on a combination of harvest sales pressure and subdued end-user demand.
But a change could be brewing for this market as we enter the peak season for U.S. exports to China and U.S. export prices for soybeans become increasingly competitive versus alternative origins for other export destinations.

Palm oil slips on Europe debt concerns
JAKARTA, Nov 3 (Reuters) - Malaysian palm oil futures dipped , as risk-averse investors were spooked by uncertainty surrounding the euro zone debt crisis, although expectations of lower output kept a floor under prices.
"This Greek sovereign debt issue has been dragging off and on," said a Kuala Lumpur-based trader. "There is a lot of uncertainty and that's the reason why palm cannot move (up).

Indonesia avoids palm tax changes, eyes India rice deal
JAKARTA, Nov 3 (Reuters) - Indonesia will not need to cut its palm oil export tax, if it agrees a rice import deal with India, the state procurement agency Bulog and trade ministry in the Southeast Asia country said on Thursday.
After meeting Indonesian officials in New Delhi on Wednesday, India said it was willing to sell 500,000 tonnes of rice to Indonesia but wanted Jakarta to cut its export tax on crude palm oil which has threatened India's domestic refining industry.

Argentina soybean exports seen 10.5 mln tonnes-attache
Nov 2 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Argentina:
"Soybean area for MY2011/12 is maintained at 19 million hectares, 300,000 ha lower than the official USDA estimate. Soybean exports for MY2010/11 are bumped up by 1.2 million tonnes to 10.5 million tonnes due to the strong pace during the first six months of the year. Sunflower area and production for MY2011/12 are expanded to 1.875 million hectares and 3.2 million tonnes respectively. Post maintains the estimate of sunflower crush for MY2010/11 at 3.4 million tonnes (up 350,000 from USDA official numbers) due to a sunflower seed harvest with record yields and higher production than expected."