Monday, November 14, 2011

20111114 1816 FCPO EOD Daily Chart Study.

FCPO closed : 3195, changed : +60 points, volume : lower.
Bollinger band reading : upside biased with possible pullback correction.
MACD Histrogram : rising, buyer in control.
Support : 3150, 3100, 3070, 3050, 3020 level.
Resistance : 3200, 3250, 3270, 3300 level.
Comment :
FCPO closed recorded gain with slower volume changed hand while Friday night soy oil closed recorded gains and currently trading firmer while crude oil easing lower after rally.
Industry expert Mr. Dorad Mistry higher crude palm oil price forecast due to improving demand and slowing down output lead FCPO to break higher resistance level.
Daily chart formed an up bar candle with lower shadow closed above upper Bollinger band level after market opened gap up and traded side way range bound market followed by minutes push to closed near the high of the day.
Technical reading still suggesting an upside biased market development with possible pullback correction.
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 1723 FKLI EOD Daily Chart Study.

FKLI closed : 1470.5, changed : +11.5 points, volume : lower.
Bollinger band reading : pullback correction little upside biased.
MACD Histrogram : falling, buyer closing position.
Support : 1458, 1445, 1440, 1435 level.
Resistance : 1470, 1477, 1485, 1491 level.
Comment :
FKLI closed recorded gains with declining volume participation doing 8 points discount compare to cash market that closed higher. Friday night U.S. markets ended higher recorded gains and today Asia markets climb higher mostly while European markets currently trading higher.
Improving Japan economy growth after earthquake, new Greece and Italy government formation and sign of China soft landing policy lifted global markets higher.
Daily chart formed a down doji bar candle closed above middle Bollinger band support level after market opened higher and trade side way range bound followed by last hour downward eased to closed near the low of the day.
Technical reading study remained suggesting a pullback correction little upside biased market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

20111114 1658 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 little upside biased.

20111114 1630 Global Market & Commodities Related News.

Stocks, euro rise on hopes of progress in Europe
SINGAPORE, Nov 14 (Reuters) - Asian stocks and the euro rose on hopes that new technocratic leaders in Italy and Greece will take decisive action to save their indebted nations from bankruptcy and fend off a wider financial meltdown in the euro zone.
"Everything went to plan if you like over the weekend, so we're seeing a positive reaction," said Michael Turner, strategist at RBC Capital Markets in Sydney.

European Stocks Rise as Leaders Tackle Debt (Bloomberg)
Europeans stocks advanced for a second day after new leadership in Italy and Greece boosted confidence in the euro area’s ability to contain its sovereign- debt crisis. Asian shares and U.S. index futures also climbed. UniCredit SpA (UCG) gained 3.9 percent after the Italian lender was said to be considering a 7.5 billion-euro ($10.3 billion) share sale to strengthen capital. Hochtief AG (HOT) retreated 2.5 percent after the construction company delayed the sale of its airport-operating business. The benchmark Stoxx Europe 600 Index rose 0.4 percent to 241.88 at 8:02 a.m. in London, extending last week’s 0.5 percent advance. The MSCI Asia Pacific Index rallied 1.3 percent and Standard & Poor’s 500 Index futures increased 0.3 percent.

‘Enough’s Enough’ on Undervalued Yuan: Obama (Bloomberg)
President Barack Obama kept up his pressure on China's foreign-exhange policy and trade practices, saying “enough’s enough” on what the U.S. views as a too-slow appreciation of the yuan. While there's been a “slight improvement,” China’s exporters “like the system the way it is” and are resistant to any moves to loosen the reins on the yuan, Obama said. “Changes are difficult for them politically, I get it,” Obama said at a news conference concluding a summit with Asia- Pacific leaders in Hawaii yesterday. “But the United States and other countries, I think understandably, feel that enough’s enough.” As he seeks to reassert U.S. interests in Asia, Obama is using increasingly strong language on China’s trade, currency and intellectual property policies. The U.S. contends China’s currency is kept artificially low, putting American businesses at a disadvantage and driving up Chinese trade surpluses.

FOREX-Euro ticks up, eyes on Italy bond auction
SYDNEY/TOKYO, Nov 14 (Reuters) - The euro and commodity currencies gained ground in Asia on Monday as investors cheered progress on tackling Europe's debt problems, but traders remained wary as Italy prepares to test market appetite with a bond sale.
Most traders remain unconvinced on whether new governments in Italy and Greece can win back investor confidence in their debt, and are looking to Italy's auction for near-term cues.

Soy rises for 2nd day, wheat rebounds on euro zone hopes
SINGAPORE, Nov 14 (Reuters) - U.S. soy rose for a second straight session, while wheat recovered from a one-month low on hopes that new leaders in Italy and Greece will take steps to rescue their nations from bankruptcy.  
"It is the macro economic sentiment which is supporting grains and soybeans," said Ker Chung Yang, an analyst at Phillip Futures in Singapore. "Prices are getting attractive for buyers like China to stock up. Lunar new year is just two months away and they have to buy now."

Cargill boosts Australia capacity ahead of harvest
SYDNEY, Nov 14 (Reuters) - Cargill Inc  is boosting its grain handling capacity in Australia ahead of an expected bumper harvest in the country, the world's third-biggest wheat exporter, the U.S. head-quartered commodities giant said on Monday.
Cargill, one of Australia's largest wheat exporters following its recent purchase of the grain trading arm of AWB Ltd, now owned by Canada's , said it would spend more than A$10 million ($10.3 million) on its "Grainflow" receival sites in eastern and southern Australia.
Slowing palm oil output growth, demand to lift prices-Mistry
KUALA LUMPUR, Nov 13 (Reuters) - Erratic weather that is slowing palm oil output growth and strong demand will lift benchmark Malaysian futures  to 3,300 ringgit in January, top industry analyst Dorab Mistry said.
Mistry, who heads the trading desk for India's Godrej International, said he was sticking to an earlier forecast that palm oil would reach 4,000 ringgit by mid-2012 on the view the world will not plunge into a recession due to resilient growth in Asia.
Bumper Brazil crop to ease arabica price -analyst
PLAYA HERRADURA, Costa Rica, Nov 12 (Reuters) - Brazil could produce up to 59 million 60-kg (132-pound) bags of coffee in the 2012 harvest, helping ease the international price of arabicas from multi-year highs, a global commodities analyst said on Saturday.
The estimate would be a nearly 40 percent increase from the 43.15 million bags Brazil produced last year, as the world's top coffee producer enters an up year in its up-and-down harvest cycle.

Brazil's coffee consumption seen overtaking US
PLAYA HERRADURA, Costa Rica , Nov 11 (Reuters) - Brazil could overtake the United States in overall coffee consumption in the next few years as increasing wealth in Brazil is driving a rise in locals' thirst for espressos and cappuccinos, according to the country's coffee association head.
Brazil, the world's top coffee grower, could consume more coffee than the United States in "two to three years," Nathan Herszkowicz, executive director of Brazil's coffee industry association Abic told Reuters on Thursday.

Cuba seeks Brazil aid to boost farm production
SAO PAULO, Nov 11 (Reuters) - Cuba is seeking a credit of $200 million from Brazil to import agricultural machinery and technology in hopes of increasing food output and reducing its reliance on imports, a Brazilian official said on Friday.
The communist island thinks the aid will allow it to double its production of grains, which would enable it to meet its domestic demand, said Francesco Pierri, chief international advisor in Brazil's Ministry of Agrarian Development.

Mexico steps up its crop import game: 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 11 (Reuters) - The USDA's 14.5 percent cut to its Mexican corn output estimate was one of the most important features of the November monthly crop report as it implied the world's No. 2 corn importer would likely need to dial up its corn imports further going forward to compensate for lower domestic availability.
But Mexico also looks likely to have record high imports of wheat and rice in 2011/12 - as well as near record high soybean imports - revealing that this country is clearly going from a bit-part player to taking a leading role on the global agricultural trade stage.

Brent steady above $114 as econ outlook improves
SINGAPORE, Nov 14 (Reuters) - Brent crude held above $114, extending the gains of the previous week on hopes of steady demand
growth as concerns over Europe's debt crisis eased, with Italy and Greece putting in place new governments to shore up the countries' finances.
"U.S. crude prices have a further upside towards $102 this week, based on technicals and support from developments in Europe," said Ken Hasegawa, commodity derivatives manager at Newedge Brokerage in Tokyo. "We have already seen a big rebound in U.S. crude of about $25 a barrel since the low they touched in October."

China imported iron ore stocks up 1.5 pct in week ending Nov 11
SHANGHAI, Nov 11 (Reuters) - Inventories of imported iron ore at major Chinese ports rose 1.5 percent this week to end at 96.3 million tonnes, up for the fourth consecutive week, data from industry consultancy Mysteel showed on Friday.
Shipments from India, which has imposed a ban on large-scale mining and exports from the world's third-largest iron ore producer, fell around 2 percent from last week, as the higher freight rates and export duties also discouraged exports.

S.Korea seeks 100 T tin ingot for Dec
SEOUL, Nov 14 (Reuters) - South Korea is seeking 100 tonnes of tin ingot via tender for December 30, 2011 arrival to the port of Incheon, the state-run Public Procurement Office (PPS) said on its website.  
The tender, for tin ingot of more than 99.9 percent purity of all brands except those of Russian origin, will close at 2 p.m. (0500 GMT) on Thursday, the agency said.

Copper up on euro zone hopes, Japan's rebound
SHANGHAI, Nov 14 (Reuters) - Shanghai copper hit its daily upper trade limit of 58,780 yuan ($9,267.79) after Greece and Italy appointed new leaders and seem on track to roll out austerity measures to avert a euro zone and global financial meltdown.
"Today's lift in copper futures prices is mostly due to the positive news out of Italy and Greece over the weekend," said Minmetals Futures analyst Zhang Ao.

US copper users seek premium cuts for 2012
Nov 11 (Reuters) - U.S. copper buyers are pushing for a premium cut in 2012 while the world's largest producer, Chile's Codelco, aims to keep premiums unchanged as market players wrangle over 2012 contracts, participants told Reuters.
Anticipation was running high about next year's charges from Codelco -- considered the benchmark for most of the industry's annual deals -- as traders, producers and consumers gathered for the American Copper Council (ACC) meeting this week.

China spot copper premiums down, Codelco may offer $110
HONG KONG, Nov 11 (Reuters) - Chinese importers are buying less spot copper as it has become more difficult to secure U.S. dollar letters of credit and on sufficient domestic supply, traders said on Friday.
This has cut spot premiums and may spill over into next year, with the world's top copper producer Codelco expected to offer a premium of $110 a tonne for refined copper for delivery in 2012.

Gold inches up as Italy, Greece offer hopes
SINGAPORE, Nov 14 (Reuters) - Gold edged up, extending gains from the previous session, as change in the political leadership in Italy and Greece rekindled hopes on euro zone's resolution to the debt crisis, fueling risk appetite in markets.
"The change in political leadership is calming the financial markets," said Ong Yi Ling, an analyst at Phillip Futures, adding that confidence in the new leaders could fuel risk appetite and push bullion higher.
METALS-Copper up on euro zone hopes, Japan's rebound
SHANGHAI, Nov 14 (Reuters) - Shanghai copper hit its daily upper trade limit of 58,780 yuan ($9,267.79) on Monday after Greece and Italy appointed new leaders and seem on track to roll out austerity measures to avert a euro zone and global financial meltdown.
Japan's economy also rebounded as expected in the third quarter from a recession triggered by a devastating March earthquake on robust exports and consumption.

PRECIOUS-Gold inches up as Italy, Greece offer hopes
SINGAPORE, Nov 14 (Reuters) - Gold edged up on Monday, extending gains from the previous session, as change in the political leadership in Italy and Greece rekindled hopes on euro zone's resolution to the debt crisis, fueling risk appetite in markets.
Equities and commodities rose after Italy and Greece rushed to form new governments to save the indebted nations from bankruptcy and fend off a wider financial meltdown in the euro zone.

20111114 1142 Global Market & Commodities Related News.

GLOBAL MARKETS-Stocks, euro rise on hopes of progress in Europe
SINGAPORE, Nov 14 (Reuters) - Asian stocks and the euro rose on Monday on hopes that new leaders in Italy and Greece will take decisive action to save their indebted nations from bankruptcy and fend off a wider financial meltdown in the euro zone.
"Everything went to plan if you like over the weekend, so we're seeing a positive reaction," said Michael Turner, strategist at RBC Capital Markets in Sydney.

COMMODITIES-Oil extends rally to near $100; most others up
NEW YORK, Nov 11 (Reuters) - Oil rose a second straight day on Friday, hitting nearly $100 before finishing off its highs to put it higher for the sixth consecutive week, as commodities gained from improved U.S. consumer sentiment and reduced euro zone jitters. "It's all a question of the bigger, wider macroeconomic story," said Gary Mead, analyst with VM Group, referring to moves in Italy to form a new government and tackle its public debt. "Risk aversion is still the name of the game for the speculative investor."

Oil up as EU jitters ease, U.S. consumers brighten
NEW YORK, Nov 11 (Reuters) - Oil prices rose on Friday, \reacting to steps by Italy and Greece to address their economic and political crises and to improved U.S. consumer sentiment.
"Oil prices continue to build on recent gains from the growing conclusion that the euro zone countries will get past the current debt crisis episode," said John Kilduff, partner at Again Capital LLC in New York.

Libya on oil contracts: we will favour our friends
DOHA, Nov 13 (Reuters) - Libya's new government will reward its friends once the oil producer begins awarding oil contracts in the aftermath of its civil war, the head of its National Oil Corporation (NOC) said on Sunday.
Libya is not expected to give any major new concessions until an elected administration takes over from the incoming transitional government, in about eight months time.

Russia's Surgut sees oil output rising in 2011-12
MOSCOW, Nov 12 (Reuters) - Russia's No.4 oil producer Surgutneftegaz  plans a modest oil output increase this and next year, its General Director Vladimir Bogdanov said on Saturday.
"(The output) will be more than last year. Next year... will also be a growth," he told journalists at the sidelines of a conference.

Indian state cos eye gasoline price cut next week-source
NEW DELHI, Nov 11 (Reuters) - Indian state-run retailers may cut gasoline prices from Nov. 16, an industry source said, the first cut in nearly three years and the first in the 18 months since the government ended controls.
The cut could be for at least 0.60 rupees a litre, or about 1 percent, the source said on Friday.

Natgas ends down for 3rd day on weather, storage
NEW YORK, Nov 11 (Reuters) - U.S. natural gas futures ended lower on Friday for a third straight day, with Thursday's bearish weekly inventory data and the milder change in computer weather models driving most months to new contract lows.
"The name of the game is weather. There's cold in western Canada but no mechanism to bring it down. Forecasts are still relatively mild for the next two weeks," said Steve Mosley at SMC Advisory Services in Arkansas.

Euro Coal-Prices rise 50 c/T with oil, euro gains
LONDON, Nov 11 (Reuters) - Prompt physical coal prices moved higher by a marginal 50 cents a tonne on Friday although few trades were reported, in line with gains in oil and the euro after Italy's Senate approved economic reforms aimed at restoring investor confidence.
"Generally it is looking more bearish, very little happening in Europe, India's not buying and Chinese interest is limited," one utility trader said.

20111114 1127 Malaysia Corporate Related News.

Padiberas: To increase equity to 49% in Ban Heng. Padiberas has signed a master agreement with Jelapang Jati Sdn Bhd and Ban Heng Bee Holdings Sdn Bhd for the proposed increase of the former equity stake from 20% to 49% in Ban Heng Bee for RM110.7m. (Source: Malaysian Reserve)

Dijaya, Ivory: Team up in Penang. Property developer Dijaya Corp Bhd has teamed up with Penang-based Ivory Properties Group Bhd to develop residential and commercial properties with an estimated gross development value (GDV) of RM10b in Bayan Mutiara, Penang under the latest JV called Tropicana Ivory Sdn Bhd, with Ivory takes a 51% stake and Dijaya the remaining 49%.(Source: The Sun)

Property: RM600m condo deal in Iskandar Malaysia. Medini Land Sdn Bhd, a wholly-owned subsidiary of Iskandar Investment Bhd (IIB), is teaming up with Darul Tinggi Sdn Bhd to develop a high-rise condominium project in Iskandar Malaysia with a gross development value of RM600m under a JV company, Distinctive Resources Sdn Bhd, which will be 80% owned by Darul Tinggi and 20% by Medini Land. (Source: Business Times)

Media: New digital cable TV operator Nilamas to unveil all tomorrow. Nilamas Corp Bhd is set to showcase a team that will take on giant Astro All Asia Networks Plc in the battle for eyeballs in the local pay-TV market. Nilamas has secured all the requisite licenses from the Government to offer digital cable TV service. The licenses are valid for five years. The set-up cost for the cable network offering is expected to be RM2b over five years and Nilamas may be looking at a 40:60 equity-debt combination to finance its venture. (Source: The Star)

Kimlun gets RM68m contract in Iskandar Malaysia
Kimlun Corp Bhd has secured a contract worth RM68m to build a service apartment in Iskandar Malaysia in Johor. In a filing Friday, 11 Nov, the company said its wholly-owned subsidiary, Kimlun SB, had accepted the letter of award for the contract from Grand Action Sdn Bhd. Kimlun said the construction work was expected to be completed by January 2014. (Financial Daily)

Petronas, Shell in production-sharing oil recovery deal
Petroliam Nasional (Petronas) and Shell Malaysia have signed a heads of agreement for two 30-year production-sharing contracts (PSCs) for enhanced oil recovery (EOR) projects offshore Sarawak and Sabah. The agreement would see staged work activities and new investments by Shell and its JV partner, Petronas Carigali SB, to extend the life and increase the recovery factor of the Baram Delta (BDO) and North Sabah fields, Shell Malaysia said. (StarBizWeek)

KPJ to buy four plots of land for RM24m and lease hospital in Seberang Perai
KPJ Healthcare is to acquire four plots of land in Klang for RM23.8m to build a specialist hospital. In its announcement, KPJ said that it expected the development costs for the total area of 1.84 ha to be within the range of RM110m-RM120m while the hospital construction is estimated at RM80m. The funds for all developments will be internally generated. KPJ added that the hospital is expected to be completed in two years after the acquisition goes through by its wholly-owned subsidiary Kumpulan Perubatan (Johor) SB. (StarBizWeek)

On another note, KPJ Healthcare is believed to be leasing a medical care facility which to be built on four acres in Seberang Perai Tengah, Pulau Pinang under an initial 10-year agreement with and Aseania Development SB. In a filing on Friday, 11 Nov, KPJ said that its wholly-owned subsidiary, Penang Specialist Hospital SB (PgSHSB) together with Lembaga Kemajuan Wilayah Pulau Pinang (PERDA) and Aseania, had entered into a design, build, and lease (DBL) agreement to construct the medical care facility. (Financial Daily)

Pavillion REIT starts sale of IPO to raise RM700m
Pavillion REIT, part-owned by the Qatar Investment Authority, expects to raise RM700m in its Malaysian IPO, according to a note to investors. The property trust, which owns the Pavilion Shopping Mall and an adjacent office tower here, has started marketing units to fund managers at 88 sen to 90 sen each according to the note. AIA Bhd, Great Eastern Life Assurance, and the Employee Provident Funds were the key investors in Pavilion REIT, which had forecasted a distribution yield of as much as 6.73% based on the company’s earnings estimates, it said. (StarBizWeek)

UDA-JCorp to undertake RM280m projects
UDA Holdings has teamed up with Johor Corp (JCorp) subsidiaries to undertake projects with a gross development value of RM280m. UDA chairman, Datuk Nur Jazlan Mohamed, said they would jointly develop 5.2ha of land in Tampoi with Damansara Asset SB and Johor Land. “Within the next three years, Yampoi will see growth following the collaboration,” he said at the agreement signing ceremony on Saturday. (Malaysian Reserve)

20111114 1126 Local & Global Economic Related News.

Malaysia: Malaysia holds policy rate as Europe crisis imperils growth
Malaysia left interest rates unchanged for a third straight meeting as Bank Negara Malaysia kept the benchmark overnight policy rate at 3%, it said in a statement in Kuala Lumpur last Friday. Malaysia joins nations from South Korea to China in leaving borrowing costs unchanged to sustain spending at home, as the turmoil in Europe threatens to engulf Italy and further weaken the global recovery. The Southeast Asian nation’s inflation rate of 3.45 in September was close to a 27-month high, reducing its scope to follow Indonesia’s rate cut. Malaysia’s 3rd quarter GDP numbers is expected to be released this Friday. [Bloomberg]

China: Easing leads to steepest yield curve since May
China’s long-term bonds are offering investors the biggest yield advantage over shorter-maturity notes in six months as Premier Wen Jiabao relaxes lending curbs to combat a slowdown in Asia’s biggest economy. The gap between the government’s one-year note yields and 10-year securities widened to 102 basis points on 11 Nov from 62 at the start of the month, Chinabond data show. That’s the most since 4 May. The difference in US Treasuries with similar maturities narrowed three basis points since October to 198, while the so-called yield curve for Indian bonds shrank two to 19, according to data compiled by Bloomberg. [Bloomberg]

China: New loans rise more than expected in loosening signal. China's lending jumped by more than analysts forecast in October, signaling that the government may be loosening loan quotas to support growth in the world's second-biggest economy. Local-currency lending was CNY 586.8b (USD 92.5b), the People's Bank of China said in a statement on its website. That was the highest since June and exceeded all 18 estimates in a Bloomberg News survey that had a median forecast of CNY 500b. M2, a measure of money supply, rose 12.9% YoY. (Source: Bloomberg)

India: September industrial production rises 1.9% YoY. The median of 27 estimates in a Bloomberg News survey was for a 3.5% YoY increase. (Source: Bloomberg)

Korea: Bank of Korea leaves key interest rate unchanged at 3.25%. The decision was predicted by all 17 economists surveyed by Bloomberg News. (Source: Bloomberg)

Hong Kong: Dodges recession as Europe’s crisis slows exports
Hong Kong’s economy grew 0.1% in the third quarter from the previous three months as low unemployment and tourists from China boosted consumption while Europe’s crisis dragged on exports. Asian policy makers are weighing steps to support growth as Europe’s debt crisis threatens to engulf Italy and trigger a global slump. The GDP number showed Hong Kong skirting a technical recession, defined as two straight quarters of contraction. Chief Executive Donald Tsang warned this week in New York that there’s a 50% chance the global economy will shrink next year. [Bloomberg]

New Zealand: Retail sales rise most since 2006 on rugby fan spending
New Zealand retail sales increased the most in 4 1/2 years last quarter, boosted by spending from tourists visiting the Rugby World Cup. The currency climbed against most of its 16 major counterparts. Sales adjusted for inflation surged 2.2% in the third quarter, compared with the three months ended 30 June, when they gained a revised 1%, Statistics New Zealand said in Wellington. The gain is more than three times the 0.6% median estimate of 12 economists in a Bloomberg News survey and is the largest since the fourth quarter of 2006. [Bloomberg]

EU: Berlusconi resigns as Monti prepares new Italian government
Prime Minister Silvio Berlusconi, who dominated Italian politics for almost two decades, stepped down as the fallout from his legal woes and contagion from the euro-region’s debt crisis led his government to unravel. Berlusconi presented his resignation last night to President Giorgio Napolitano after the Parliament in Rome approved measures to spur growth and reduce the euro-area’s second-biggest debt. Napolitano will ask former European Union Competition Commissioner Mario Monti to form a government after talks with political parties that began at 9 am. [Bloomberg]

US: Obama puts pressure on China as US asserts Asia influence
President Barack Obama used his role as host of the Asia-Pacific Economic Cooperation summit to pressure China on currency and intellectual property rights while telling voters that nations in the region are counting on US leadership. Obama told Chinese President Hu Jintao that the American public and businesses are growing “increasingly impatient and frustrated” with the pace of progress in relations between the two nations, said Michael Froman, White House deputy national security adviser. The outreach is spurred by the rising commercial importance of the region and by China’s mounting economic and military power. [Bloomberg]

Wall Street gains for week as Italy fears ebb
US stocks jumped on Friday, ending higher for the week after the Italian Senate's approval of economic reforms gave investors some relief from worries about the euro zone's debt crisis. Banks were among the leaders on a day when growth-oriented stocks turned in the strongest performance. Sentiment received a big boost from falling Italian bond yields, which earlier this week hit the highest level since the euro was introduced in 1999. Dow Jones industrial average was up 259.89 points, or 2.19%, to end at 12,153.68. The Standard & Poor's 500 Index was up 24.16 points, or 1.95%, to finish at 1,263.85. The Nasdaq Composite Index was up 53.60 points, or 2.04%, to close at 2,678.75. (Financial Daily)

U.S. Michigan sentiment index increased more than forecast in November, offering additional support to the biggest part of the economy. The Thomson Reuters/University of Michigan preliminary index of consumer sentiment climbed to 64.2 this month, the highest since June, from 60.9 in October. (Source: Bloomberg)

U.K: Producer- price inflation eased in October to the lowest in five months after commodity costs declined from records reached earlier this year and global demand weakened. The cost of goods at factory gates was flat on the month and the annual rate of inflation eased to 5.7% YoY from 6.3% YoY in September. That's the slowest annual pace since May. (Source: Bloomberg)

20111114 1112 Global Market Related News.

World Economy Faces ‘Significant’ Risks: APEC (Source: Bloomberg)
The world economy is facing “significant downside risks” stemming in part from the European debt crisis, leaders at the Asia-Pacific Economic Cooperation forum said. Growth and job creation have weakened in many countries and further trade liberalization is “essential” to boost economic expansion, the leaders said in a statement in Honolulu today. Europe’s sovereign-debt crisis was a frequent topic at the summit aimed at improving economic ties in the Asia-Pacific region. Officials said they are bracing for a worsening of the situation in Europe that may push the global economy into a recession and increase volatility in financial markets. Emerging-market nations from Brazil to China to Indonesia have started to cut interest rates or increase fiscal measures to shield growth.
“We meet at a time of uncertainty for the global economy,” the leaders said in the statement. “We firmly resolve to support the strong, sustained, and balanced growth of the regional and global economy.”

Asian Stocks Rise on New Europe Leaders, China Economy (Source: Bloomberg)
Asian stocks rose, paring two weeks of losses, amid optimism new governments in Greece and Italy will help contain Europe’s debt crisis and amid signs China may engineer an economic “soft landing,” boosting confidence. Honda Motor Co., Japan’s second largest carmaker by market value, increased 1.9 percent after a report showed the nation’s economy expanded for the first time in four quarters. Komatsu Ltd. (6301), a Japanese machinery maker that gets 23 percent of its sales in China, climbed 3.8 percent after as two of China’s best-known economists said the country’s economy was responding to policies to reduce lending, lower inflation and curb property prices will have a “soft landing.” Woodside Petroleum Ltd. (WPL), Australia’s oil and gas producer, advanced 1.7 percent after oil prices rose.
“The situation in Greece has dramatically improved with the appointment of a unity government out there, and Italy looks like it’s getting close to a resolution,” said Angus Gluskie, who manages more than $350 million at White Funds Management in Sydney. “Two of the largest concerns of the market are being partially taken off the table.”

Japanese Stocks Advance as GDP Expands 6%, Italy Names New Prime Minister (Source: Bloomberg)
Japan stocks rose, with the Nikkei 225 (NKY) Stock Average paring two weeks of losses, after the nation’s economy expanded in the third quarter and amid optimism new governments in Europe will help prevent a worsening of the region’s debt crisis. Sumitomo Mitsui Financial Group, Inc., Japan’s second- largest lender by market value, rose 3 percent. Nippon Electric Glass Co. led gains among makers of the material, rising 5.3 percent, after Barron’s said shares of industry-leader Corning Inc. are poised to surge. Olympus Corp. (7733) was set to rise by the daily limit after a report the scandal-hit company may avoid delisting. The Nikkei 225 advanced 1.2 percent to 8,617.27 at the 11 a.m. break in Tokyo, set for its biggest gain since Nov. 4. The broader Topix index climbed 0.9 percent to 735.69. Stocks gained after Japan’s economy grew for the first time in four quarters as exporters rebounded from the March earthquake.

U.S. Stocks Gain on Consumer Confidence (Source: Bloomberg)
U.S. stocks rose this week, restoring the year-to-date gain for the Standard & Poor’s 500 Index, as improving economic data and leadership changes in Greece and Italy bolstered investor optimism. Walt Disney Co. (DIS) and Cisco Systems Inc. (CSCO) advanced more than 5.4 percent, helping lead the Dow Jones Industrial Average (INDU) higher, after reporting better-than-estimated profits. Health- care stocks advanced the most in the S&P 500 as Merck & Co. gained 5.7 percent after increasing its dividend. E*Trade Financial Corp. slipped 14 percent after the board rejected putting the company up for sale. The S&P 500 rose 0.9 percent to 1,263.85, overcoming a 3.7 percent decline on Nov. 9 that was the largest one-day loss since Aug. 18. The Dow advanced 170.44 points, or 1.4 percent, to 12,153.68 this week.
“With abated fears on Europe and abated fears on the U.S. economy, there is a general sense that the world is not going to come to an end,” Uri Landesman, who helps oversee $1 billion as managing general partner of New York-based hedge fund Platinum Partners LLP, said in a telephone interview. “Neither the bulls nor the bears are digging in their heels, so there is overreaction to the news.”

European Stocks Gain as Carlsberg Rises on Profit Outlook, Holcim Drops (Source: Bloomberg)
European stocks climbed this past week as Italy’s Senate approved austerity measures, easing concern the country will need a bailout, and U.S. consumer confidence rose in November more than economists had predicted. Carlsberg A/S surged 16 percent after reiterating its prediction that adjusted net income will rise 5 percent to 10 percent this year. Stada Arzneimittel AG jumped 16 percent after saying the Serbian government guaranteed to settle its agencies’ bills with drugmakers. PostNL NV slid 13 percent as the biggest Dutch postal operator said profit decreased. The benchmark Stoxx Europe 600 Index gained 0.5 percent to 240.98 this past week on optimism a new government led by former European Union Competition Commissioner Mario Monti will take charge in Italy. The Stoxx 600 will rally 14 percent to 275 through the end of next year as earnings growth supports valuations and “extreme pessimism” abates, according to Barclays Plc.

Obama Promotes Trade Deal to Boost U.S. in Asia (Source: Bloomberg)
Nine Asia-Pacific nations including the U.S. outlined a framework for a free trade accord and agreed to accelerate negotiations with the aim of completing an agreement within the next year. Leaders involved in the Trans-Pacific Partnership trade talks are setting July as a target for reaching an agreement, Malaysian Prime Minister Najib Razak said in Honolulu on Nov. 12. President Barack Obama said the aim is to reach a formal pact in the next 12 months and a U.S. official said there is “no firm deadline.” Negotiators will meet in early December and schedule more discussions then, the leaders said in a statement.
An accord among the Pacific Rim nations would be the first trade deal that Obama signed rather than inherited and the biggest for the U.S. since the North American Free Trade Agreement with Canada and Mexico that took effect in 1994. It would also help the U.S. regain economic influence it has ceded to China in a region that contains sea lanes vital to world commerce, as well as coal, oil and other commodities.

Obama Pressures China on Yuan, Property Rights (Source: Bloomberg)
President Barack Obama used his role as host of the Asia-Pacific Economic Cooperation summit to pressure China on currency and intellectual property rights while telling voters that nations in the region are counting on U.S. leadership. Obama told Chinese President Hu Jintao yesterday that the American public and businesses are growing “increasingly impatient and frustrated” with the pace of progress in relations between the two nations, said Michael Froman, White House deputy national security adviser. Hu told Obama that a large appreciation of the yuan won’t solve U.S. problems, a statement on the Chinese Foreign Ministry’s website said. Obama’s strong language came only hours after he announced the U.S. and eight other nations will join in forging an Asia- Pacific trade accord within the next year, a move he said demonstrates that “American leadership is still welcome.”

Obama Meets Gillard as Embattled First Leaders Shadowed by China Resources (Source: Bloomberg)
President Barack Obama arrives this week in an Australia whose economy is reliant on billions of dollars in mineral and energy contracts from emerging superpower China and whose security depends on an alliance with the U.S. -- China’s biggest rival. Personal ties between Obama and Prime Minister Julia Gillard, born within two months of each other, underscore the nations’ political bonds as China expands its security interests toward southeast Asia. Obama, the first black U.S. president, and Gillard, Australia’s first woman prime minister, share a struggle to overcome resistance to their agendas -- from universal health care in the U.S. to a mining tax in Australia. “This relationship between Obama and Gillard has some warm, fuzzy atmospherics -- their interests are congruent,” said Michael McKinley, a lecturer in international relations at the Australian National University in Canberra.
“China is the elephant in the room for Obama and Gillard,” said McKinley, whose analysis has been used in parliamentary testimony.

Retail Sales, Manufacturing in U.S. Probably Climbed to Give Economy Boost (Source: Bloomberg)
Retail sales probably rose in October and U.S. manufacturing accelerated, helping give the world’s biggest economy a boost entering the final months of 2011, economists said before reports this week. The 0.3 percent rise in purchases would follow a 1.1 percent gain that was the most in seven months, according to the median forecast in a Bloomberg News survey ahead of Commerce Department figures on Nov. 15. Industrial production climbed 0.4 percent, twice as much as in September, according to the survey median. The cost of living was little changed and home construction cooled, other data may show. Unemployment at 9 percent and limited wage growth help explain why retailers like Macy’s Inc. (M) and Kohl’s Corp. (KSS) plan to use more discounts to lure consumers this holiday shopping season. At the same time, equipment purchases and record exports are propelling manufacturing and sustaining a recovery that’s yet to extend to the housing market.

Treasuries Decline as Europe’s Leadership Changes Ease Debt-Crisis Concern (Source: Bloomberg)
Treasuries fell, extending a decline from last week, on speculation new governments in Greece and Italy will be able to tackle Europe’s debt crisis. Demand for the relative safety of U.S. bonds waned as Asian stocks rose after Prime Minister Lucas Papademos took charge as head of an interim Greek government. Mario Monti, a former European Union commissioner, agreed to lead a new Italian government. The extra yield 10-year U.S. notes offer over same- maturity German bunds widened to 25 basis points from 17 basis points last week. The average for 2010 is 14 basis points. “I’m bearish for Treasuries,” said Khoon Goh, head of market economics and strategy at ANZ National Bank Ltd. in Wellington. “We have some political stability from Greece and Italy. Now those two governments can get on with the necessary reforms to ensure that the euro-zone crisis can be stabilized.”

Hu Pushes Imports; IMF’s Zhu Sees ’Soft Landing’ (Source: Bloomberg)
China’s President Hu Jintao pledged to boost imports as the world’s second-biggest economy heads for what the top Chinese International Monetary Fund official said was a successful downshift from inflationary growth. IMF Deputy Managing Director Zhu Min and China’s National Economic Research Institute Director Fan Gang yesterday told the Asia Pacific Economic Cooperation forum in Honolulu that the economy was heading for a “soft landing” as growth slows. They cited lower inflation and less bad debt at banks, and what Fan said were timely measures to avoid a property market bubble. “It has become ever clearer that the Chinese economy is moving to a soft landing,” Zhu said. “The Chinese economy today is really moving to an inflection point, moving to more services and capital-intensive economy.”

Hu Says ‘Large’ Yuan Appreciation Won’t Fix U.S. Trade Deficit, Employment (Source: Bloomberg)
The U.S. trade deficit and unemployment are not caused by the yuan exchange rate and a “large” appreciation in the currency won’t solve U.S. problems, Chinese President Hu Jintao said in comments posted on the foreign ministry’s website today. China’s foreign exchange policy is a “responsible” one and the country will continue reforming its exchange rate mechanism, according to the statement, which cited Hu at a meeting with U.S. President Barack Obama.

Hu Pushes Imports; IMF’s Zhu Sees ’Soft Landing’ (Source: Bloomberg)
China’s President Hu Jintao pledged to boost imports as the world’s second-biggest economy heads for what the top Chinese International Monetary Fund official said was a successful downshift from inflationary growth. IMF Deputy Managing Director Zhu Min and China’s National Economic Research Institute Director Fan Gang yesterday told the Asia Pacific Economic Cooperation forum in Honolulu that the economy was heading for a “soft landing” as growth slows. They cited lower inflation and less bad debt at banks, and what Fan said were timely measures to avoid a property market bubble. “It has become ever clearer that the Chinese economy is moving to a soft landing,” Zhu said. “The Chinese economy today is really moving to an inflection point, moving to more services and capital-intensive economy.”

China ’Ready’ to Let Foreign Firms Sell Shares (Source: Bloomberg)
China is “basically ready” to allow foreign companies to sell equity in the world’s second- biggest stock market, according to the Shanghai Stock Exchange official in charge of the so-called international stocks board. The exchange has finished working on listing and trading rules, while the technological, regulatory, and system requirements are “basically ready,” Xu Ming, executive vice president of the Shanghai Stock Exchange, said in a Nov. 11 interview at the bourse. While there is no timetable for introducing the board, it should start “as soon as possible when the time is ripe,” he said. “The internationalization of the securities market will benefit the whole nation and overseas companies are highly motivated,” Xu said.
Shanghai, home to one of China’s two stock exchanges, is luring overseas companies to list as part of the local government’s drive to make the city a global financial center by 2020. HSBC Holdings Plc, Coca-Cola Co. (KO) and NYSE Euronext are among the multinational companies that have expressed interest in selling shares to investors in China. Shanghai, the nation’s financial hub, has been contacted by foreign companies in the finance, telecommunications, consumer goods and manufacturing industries, Fang Xinghai, head of the city’s financial services office, said in a May 2010 interview.

Japan Emerges From Post-Quake Slump on Exports (Source: Bloomberg)
Japan’s economy expanded for the first time in four quarters, recovering from the record March earthquake as exports and consumer spending rose. Gross domestic product grew at an annualized 6 percent in the three months ending Sept. 30, the fastest pace in 1 1/2- years, the Cabinet Office said today in Tokyo. The median forecast of 26 economists surveyed by Bloomberg News was for a 5.9 percent increase. Japan’s return to growth after three quarters of contraction was driven by companies including Toyota Motor Corp. making up for lost output from the March disaster. A sustained rebound hinges on rebuilding demand expected to kick in this quarter as the yen’s climb to post-World War II highs and Europe’s fiscal woes threaten the outlook for exports. “The level of real GDP has now returned” to pre-quake levels, said Takuji Aida, senior economist at UBS AG in Tokyo. Reconstruction spending will help “offset pressure from the slowdown in the European economy,” he said.

Swan Says Europe’s Debt Woes Will Make Australian Budget Surplus Tougher (Source: Bloomberg)
Australian Prime Minister Julia Gillard’s pledge to return to a budget surplus in 2013 is being made “a lot tougher” by Europe’s sovereign debt crisis, Treasurer Wayne Swan said. “The hit to government revenue caused by the global turbulence means we’ll have to continue making tough budget decisions,” Swan said in an e-mailed statement yesterday. The crisis is flowing “through to government revenue, and will add to the A$130 billion ($134 billion) in revenue writedowns we’ve seen since the global financial crisis first struck.” Australia is unlikely to meet its pledge without policy changes, Deloitte Access Economics said on Nov. 7, forecasting the shortfall will be A$1.9 billion in 2012-13, or A$5.4 billion worse than Treasury’s estimate of a A$3.5 billion surplus. Failure to achieve the target may stoke criticism of the Labor government’s fiscal management by the opposition Liberal- National coalition, which leads in opinion polls.

Euro Gains as New Governments in Italy, Greece Boost Investor Confidence (Source: Bloomberg)
The euro rose for a third day on prospects market confidence in Italy’s ability to contain its debt will be revived after Mario Monti, a former European Union competition commissioner, takes over as prime minister. The 17-nation currency advanced against the yen after Greece’s finance minister said his priority is to ensure the country receives a sixth loan under an EU-led bailout after Prime Minister Lucas Papademos took charge as head of an interim government. Australia’s dollar gained as rising Asian stocks boosted demand for higher-yielding assets. The New Zealand dollar strengthened against most major peers after a report showed retail sales increased by the most since 2006. “We’ve seen a more positive start to the week with the new technocrat governments in Italy and Greece, but there’s still a lot of uncertainty,” said Emma Lawson, a currency strategist at National Australia Bank Ltd. in Sydney. “We’ll try and test to the upside for the euro and the Aussie.”

More Than 1,000 MF Global Staff Fired (Source: CME)
The trustee liquidating the broker-dealer business of MF Global Holdings Ltd. fired the unit's 1,066 employees effective immediately, according to a statement. Between 150 and 200 staff will be rehired to help with the wind-down process, including the handling of claims on the collapsed firm's estate. James Giddens, the trustee, aims to vacate MF Global's midtown Manhattan offices as soon as possible and rent out smaller, less expensive office space to handle the liquidation, according to the statement. MF Global's Chicago offices will continue to be leased for a limited time period. Some employees of MF Global in New York and Chicago already had been let go last Friday. Salaries for those terminated in the trustee's action will be paid through Nov. 15. The 1,066 let go represent a little more than one-third of the 2,847 staff listed by MF Global as of March 31.
The broker-dealer unit is not being restructured and the termination of employees is a "necessary part" of the liquidation, according to the trustee's statement. "We are saddened by the trustee's actions today to terminate to many of our colleagues," a spokeswoman for MF Global said in a statement. The mood in MF Global's New York office was described as grim, as human resources staff went from floor to floor to speak to employees. Some complained of suddenness of the announcement, with numerous people learning of the terminations via newswires or television. Some employees were said to have been let go with no severance and health care coverage is being continued through the end of November, according to a person familiar with the matter. Concerns were also raised as to whether the firings would hinder efforts to hunt down an estimated $600 million in MF Global's customer funds that was discovered missing on Oct. 31, the day the firm filed for bankruptcy, according to the person.

20111114 1112 Global Commodities Related News.

Corn (Source: CME)
US corn futures settled at their lowest level in two weeks, driven by slumping demand. Concerns US corn is overpriced in world markets weighed. Reports of Southeast US livestock feeders importing cheaper feed wheat to replace high-priced corn in feed rations attracted sellers, analysts say. Sluggish export demand seen as another signal that it's one of the most over-priced grains in the world market, analysts say. Firm cash prices, strong demand from ethanol producers and firm outside market provided light support to limit declines. CBOT Dec corn finished down 7c or 1.1% at $6.38 1/2/bushel.

Wheat (Source: CME)
U.S. wheat futures ended mixed, as nearby CBOT soft red winter futures slip on news of imports. The imports have prompted ideas that prices are too high and must retreat to generate more demand. Export demand remains poor amid ample world supplies. Worries about U.S. crops, particularly the hard red winter crop in the southern Plains, limiting the downside. CBOT Dec. wheat ends down 3 1/4c to $6.16 1/4 per bushel while MGEX Dec. wheat closes down 11 1/4c to $9.34 1/4. KCBT Dec. hard red winter wheat ends up 7c at $7.04.

Rice (Source: CME)
U.S. rice futures continued to slump, ending lower on weak demand and technical selling. CBOT Nov. rice ends down 3c to $15.00 1/2 per hundredweight, setting another fresh 4-month low. Prices have fallen 11 of the past 12 days and are down from and Oct. 25 high of $17.26.

U.S. wheat futures stage modest recovery
SYDNEY, Nov 11 (Reuters) - U.S. wheat futures posted modest gains as bargain hunters stepped in after a fall of nearly 4 percent the previous session when investors dumped contracts, spooked by weak U.S. grain exports and the fallout from Europe's debt crisis.
"Basically, people are taking advantage of the sell-off," said Jonathan Barratt, head of Sydney-based Commodity Brokering Services.

Russian harvests 96.9 mln tonnes of grain - AgMin
MOSCOW, Nov 10 (Reuters) - Russia has harvested 96.9 million tonnes of grain by bunker weight from 97.3 percent of the harvesting area of 42.9 million hectares, the Agriculture Ministry data showed on Thursday.
The ministry has lowered the targeted harvesting area from a previous 44.1 million hectares, the data showed.

Russia may export up to 17 mln T grain by year-end
MOSCOW, Nov 10 (Reuters) - Russia, which plans to export 24-25 million tonnes of grain in the 2011/12 crop year, may ship up to 17 million tonnes of grain by the end-December half way point, First Deputy Prime Minister Victor Zubkov said on Thursday. Zubkov told reporters that Russia had already exported a hefty 13.3 million tonnes of grain since July 1, after the expiration of a near year-long export ban imposed due to a severe drought in 2010.

Final US harvest bogged down by rain, light snow
CHICAGO, Nov 10 (Reuters) - The remaining harvest of the 2011 U.S. corn and soybean crops has been slowed by wet weather, and more rain is expected in the eastern Midwest next week, an agricultural meteorologist said Thursday.
"It will be drier through Monday, then a low pressure system should bring rain to the east next week, including Ohio where they've already been slowed by rain," said Sean Rocheford, meteorologist for World Weather Inc.

Ukraine exports 5.4 mlnT grain so far in 11/12 -lobby
KIEV, Nov 10 (Reuters) - Ukraine, which plans to export a record 27 million tonnes of grain in the 2011/12 season, exported 5.4 million tonnes from July to Nov. 9, the Ukrainian Agrarian Confederation (UAC) grain lobby said on Thursday.
"As of November 9, grain exports from Ukraine totalled about 5.4 million tonnes, including about 2 million tonnes of wheat, 1.4 million of maize and 1.8 million of barley," UAC director Serhiy Stoyanov said in a statement.

China's Grain Problem Tough To Solve (Source: CME)
China is facing difficulties in solving its "grain question," or its ability to feed itself, and must persist with the policy of maintaining self-sufficiency in grain supply, a vice chairman with China's top economic planning agency said. Du Ying's comments are a signal that despite rising pressures for grain imports--corn, in particular--Beijing doesn't plan to relent on maintaining the world's largest grain reserves. Global grain stocks have fallen to 70 days' worth, Du said, citing the Food and Agriculture Organization of the United Nations. A rising population, shrinking land and changing lifestyles will "cause our country's grain [market] balance to remain tight," he said in a webcast of a State Council Information Office briefing. At the briefing, Henan Province Governor Guo Gengmao said the province's grain output this year will likely reach 55 million metric tons, or 10% of national output.
This means China is likely to announce a 550-million-ton harvest this year, a fresh record. While government officials have hinted at the figure, Guo's comment provided further confirmation that the government may announce the figure for the full year in coming months. Henan is China's top grain producer.

Wheat Shippers Battle for Sales as Global Grain Glut Expands: Commodities (Source: Bloomberg)
France may lose its place as the second-biggest wheat exporter after failing to win more than a dozen tenders in Egypt, the world’s biggest buyer, as shipments from Russia, Ukraine and Kazakhstan overwhelm markets. Egypt favored cheaper supply from the Black Sea region in the past 17 tenders and cargoes to northern Africa from France’s Rouen, Europe’s biggest grain-export hub, fell to a four-month low in the week ended Nov. 2, port data show. France’s crop office expects a 23 percent drop in shipments in the 12 months ending in June, the most in at least a decade.
That’s reversing last season’s trend, when French cargoes jumped 16 percent to a record as Russia and Ukraine cut sales to ensure domestic supply. Prices that reached a three-year high in February are plunging after both countries eased restrictions. Output is also expanding elsewhere and the United Nations expects the biggest-ever global harvest. Wheat may drop another 20 percent in Paris by May, said Greg Grow, director of agribusiness at Archer Financial Services Inc. in Chicago.

S Korea, China May Buy Ukrainian Wheat (Source: CME)
Traditional U.S. corn buyers Japan and Taiwan are purchasing the grain from the Ukraine to cut costs, the U.S. Grains Council's senior regional director for the Mediterranean and Africa said. Ukrainian feed wheat, a substitute for corn, could also start heading to South Korea and even China, which traditionally favours corn as a feedmeal, Cary Sifferath said in a report. "With a record corn crop this year and plenty of feed quality wheat to sell, I would now say Ukraine will have 10 million to 12 million tons of corn and 7 million tons of feed wheat available for export," Sifferath said. Ukrainian corn and feed wheat exports appear to be becoming a strong competitor for the U.S., the world's largest corn exporter, he said. The International Grains Council last month raised its forecast for Ukrainian corn exports forecast by 4.7% to 9.0 million tons. The country exported 5.0 million tons of corn in the IGC marketing year ended June 30.
China's wheat imports will likely hit 1.5 million tons in 2011-12, the IGC said, an increase of 50% from its earlier forecast of 1 million tons.

Argentina Shifts Gears In Ethanol Push (Source: CME)
Argentina is pushing full steam ahead with plans to turn a larger chunk of its grain into fuel, tracking the headlong drive toward corn ethanol production in the U.S. and stoking fears that using food for fuel will drive up food prices across the globe. Argentina is already a global leader in making soybean-based biodiesel and currently turns much of its sugar into gasoline, but now it's turning to the corn stalks carpeting the Pampas each season to fill its gas tanks in an effort to meet ambitious blending targets. Argentina is the world's second-leading corn exporter behind the U.S. "It's certainly not good news for global livestock industries, or countries worried about food inflation," said Rich Feltes, senior vice president of research for R.J. O'Brien. But local corn growers say the fears are overblown. Argentina's corn production will swell to meet the new demand for ethanol, said Martin Fraguio, director of the corn growers association Maizar.
In addition, the feed industry will get a boost as the byproducts from ethanol production go into chicken, pig and cattle troughs, he added. According to Fraguio, by 2012 ethanol producers will be using 200,000 to 300,000 metric tons of corn per year, rising to between 500,000 and 600,000 tons in 2013 and almost a million tons by 2014. That's a relatively small share of the country's total corn output. Argentina's farmers are expected to grow a record 29 million tons of corn during the 2011-12 season, with exports at 20 million tons, according to the U.S. Department of Agriculture. A handful of companies are pouring hundreds of millions of dollars into the corn ethanol business to take advantage of Argentina's stimulus program. The government has made biofuels promotion a priority as a way to add manufacturing value to the country's grains. Producers are guaranteed a profit as the government sets a minimum price for biofuels which refiners are required to blend into the country's petrol.
U.S.-based grain exporter Bunge Ltd. and local grain shipper Aceitera General Deheza have teamed up to invest $201 million in a corn ethanol plant with annual capacity of 140 million liters. That project, dubbed ProMaiz, will more than double the country's ethanol production capacity, which totaled 122 million liters in 2010, according to the government. ProMaiz alone is expected to fill 30% of the country's blending quota. Local firms Vicentin S.A., the Argentine Cooperative Association ACA, and Bio4 SA are also charging ahead with plans to build ethanol plants in Cordoba province, the heart of Argentina's corn country. Argentina is currently putting a 3.5% ethanol blend in the gas, although 5% is mandated. By 2012, that will bump up to 8%, although the country is likely to be late in hitting those targets, said Carlos St. James, Regional Director & Board Member of the Latin American & Caribbean Council on Renewable Energy and founder of the Argentine Renewable Energies Chamber.
So far, Argentina has lagged in turning its corn into fuel, but when the current construction wave is done, 58% of the country's ethanol will come from corn, St. James said. Currently it is all made from sugar cane, but because of the climate Argentina can't grow enough sugar to meet the mandated blending requirement. This year, ethanol production is expected to reach 150 million liters. By 2012, the country should be producing 330 million liters per year of ethanol from corn on top of 243 million liters from cane, according to St. James. For now, Argentina's ethanol boom is geared to the domestic market due to the guaranteed demand and minimum price. However, Argentina has already proved itself one of the world's most efficient biodiesel makers, leading global exports of the fuel and coming in second after the E.U. in terms of production. Argentine biodiesel makers will export $1.5 billion worth of the fuel this year, according to the government.

China Cotton Imports Surge In October (Source: CME)
China's October cotton imports nearly tripled from a year ago, partly due to demand for high-quality Indian and Australian cotton among local buyers, and are expected to rise in the coming months, analysts said. Robust appetite for cotton in the world's top consumer and importer will likely underpin global prices and maintain a healthy balance between supply and demand. Imports hit 252,300 metric tons in October, compared with 96,096 tons a year ago, but dropped 0.2% from September, a report on an industry website run by state stockpiler China National Cotton Reserves Corp. showed. They will continue to rise in the months ahead as the peak season nears, Xinhu Futures analyst Liu Qing said. January shipments totaled 390,720 tons, the highest for the year, customs figures showed. In December 2010, they totaled 461,592 tons, the highest for that year.
In September this year, cotton imports from India more than tripled to 55,400 tons, while shipments from Australia nearly tripled to 99,500 tons, customs figures showed. Last week, China bought a huge quantity of 998,000 running bales--or around 226,000 tons--from the U.S., the U.S. Department of Agriculture said in a report. Traders and analysts said CNCRC made the purchase to replenish reserves. A CNCRC spokesperson couldn't immediately be reached for comments. The state stockpiler had only about 400,000 tons in reserves before it began local cotton purchases Sept. 8, Liu said. As of Thursday, it had purchased 380,180 tons from local farmers at CNY19,800/ton, a state-set price. January-October imports reached 2.2 million tons, down 2.4%, industry body Cncotton said.

ICE cocoa near 2-1/2 year low, sugar steady
LONDON, Nov 11 (Reuters) - ICE cocoa hovered near its lowest levels in more than two years, while sugar and coffee were steady, as investors remained cautious after another week of dramatic turns in the euro zone debt crisis.
Cocoa futures on ICE were steady with the flow of cocoa from West Africa combined with negative macroeconomic sentiment weighing on prices.

China Oct cotton imports surge, likely to rise further
BEIJING, Nov 11 (Reuters) - China's cotton imports in October surged 163 percent from the same period last year to 252,300 tonnes, an industry website reported on Friday, citing customs data.
Cotton imports in the first 10 months of this year totalled 2.20 million tonnes, down 2.4 percent on the year, according to the report published on, a website operated by the China National Cotton Reserves Corp.

Brazil CS sugar output winds down in late Oct
SAO PAULO, Nov 10 (Reuters) - Sugar production in Brazil's center-south in the second half of October dipped 23.5 percent from a year ago, as more mills ended crushing the 2011/12 cane crop, sugar cane industry association Unica said on Thursday.
Sugar output totaled 1.47 million tonnes, down from 1.92 million tonnes a year earlier. Eighty-nine out of the 310 existing mills in the region had concluded crushing by Nov. 1.

Mexico sugar chamber raises production forecast
MEXICO CITY, Nov 10 (Reuters) - Mexico's sugar production will be about 5.3 million tonnes in the 2011/12 season, up from a previous estimate of 5 million tonnes, the head of the national sugar industry chamber said on Thursday.
Exports in the 2011/2012 season, which began in November, will be about the same as last year, the chamber's director, Juan Cortina, told reporters.

ICO cuts '11/12 global coffee output to 127.4 m bags
LONDON, Nov 10 (Reuters) - World 2011/12 global coffee output is expected at 127.4 million 60-kg bags, down from the previous estimate of around 130 million bags, the International Coffee Organization (ICO) said on Thursday.
"Adverse weather conditions, which could have a negative impact on production or post harvest activities, have been recorded in a number of exporting countries, particularly in Central America and Indonesia," the ICO said.

Coal India Quarterly Profit Misses Analyst Estimates Amid Lower Output (Source: Bloomberg)
Coal India Ltd. (COAL), the world’s largest producer of the fuel, posted a second-quarter profit that missed analyst estimates amid a drop in production. Net income in the three months ended Sept. 30 was 25.9 billion rupees ($516 million), or 4.10 rupees a share, Coal India said in a stock exchange filing yesterday. Year-earlier figures weren’t provided because the company wasn’t listed at the time. The median estimate of 18 analysts surveyed by Bloomberg was a profit of 27.2 billion rupees. Sales were 131.5 billion rupees. The state-run company’s production fell in the quarter after heavy monsoon rains halted output of coal, used to fire more than half of the power generation capacity in Asia’s second-fastest growing major economy. Electricity generation in September dropped 3.5 percent from August, while the peak-hour deficit reached 13.9 percent, the highest since April 2010.

Euro Coal-Prices dip $1 despite oil, euro rise
LONDON, Nov 10 (Reuters) - South African prompt physical coal prices fell by just over $1.00 a tonne on Thursday, despite a rebound in oil prices, the euro and equities yet activity was limited.  
"Macro news and physical coal are in alignment, prices are moving together but there's no activity in coal in Europe or Asia," one major European trader said.

Brent firms above $114; eyes euro zone debt
LONDON, Nov 11 (Reuters) - Brent crude rose above $114 a barrel, adding to gains in the previous session, on hopes that developments in highly indebted Italy and Greece were part of a move that will help avert a wider crisis in the region.
"Prices are still quite strong, given the environment. The focus is still the debt crisis in the euro zone: the headwinds from there abate somewhat with the new government in Greece and the pending Berlusconi resignation," said Commerzbank analyst Carsten Fritsch.

Bad weather shutters Mexico's three main oil ports
MEXICO CITY, Nov 10 (Reuters) - Mexico's three main oil exporting ports remained closed on Thursday afternoon due to high winds and waves caused by a cold front, the government said.
Waves of 16 to 19 feet (4.9 to 5.8 meters) and winds up to 56 mph (90 kph) closed Coatzacoalcos port, one of Mexico's three main oil-exporting ports.

Oil Rises for a Third Day to Highest Since July on European Debt Outlook (Source: Bloomberg)
Oil rose for a third day in New York amid speculation new governments in Italy and Greece increase Europe’s ability to contain a debt crisis that threatens to derail economic growth and curb fuel demand. Futures advanced as much as 0.7 percent, extending last week’s 5 percent gain. Greece’s finance minister said his priority is to ensure the country receives a sixth loan under a EU-led bailout. Italy’s President Giorgio Napolitano offered Mario Monti, a former European Union competition commissioner, the post of prime minister. Oil markets are in balance and not over-supplied, ministers from OPEC-member nations Algeria, Iran and Nigeria said Nov. 13. Crude for December delivery climbed as much as 70 cents to $99.69 a barrel in electronic trading on the New York Mercantile Exchange and was at $99.02 at 7:44 a.m. Singapore time. The contract gained $1.21 on Nov. 11 to to $98.99, the highest settlement since July 26. Prices have risen for six weeks, the longest run of gains since April 2009.

Iron Ore-Spot extends winning streak to 9th day on tight supply
SINGAPORE, Nov 11 (Reuters) - Spot iron ore prices rose for a ninth straight day and the market remained well bid on Friday, supported by firm demand from Chinese steel mills and limited seaborne shipments.
The supply of spot cargoes from Vale , BHP Billiton   and Rio Tinto   has dropped significantly as the world's three biggest iron ore producers have sold recent shipments through longer-term deals, traders said.

China's Baosteel cuts main product prices for Dec
SHANGHAI, Nov 11 (Reuters) - China's Baoshan Iron & Steel  will cut its main product prices for December bookings, the company said on Friday, a move reflecting the weakness in steel demand in the final month of 2011.
The company, also known as Baosteel, plans to slash hot-rolled coil prices by 200 yuan ($32) per tonne and cold-rolled coil prices by 300 yuan per tonne, after it kept its main steel product prices unchanged in November from October.

China Oct copper imports shine, iron ore suffers
SHANGHAI, Nov 10 (Reuters) - China's October commodities trade data shows the winners and losers from the country's cooling economy -- copper imports rose for the fifth straight month, but a slump in iron ore shipments highlights the risks for raw materials linked to real estate.
The government's resolve to clamp down on the property sector means the steel and cement industries, and associated raw materials such as iron ore and coking coal, will remain mired for at least the next quarter.

Gold Traders Most Bullish Since 2004 on Debt Crisis (Source: Bloomberg)
Gold traders and analysts are the most bullish in at least seven years as investors accumulate metal at the fastest pace since August to protect their wealth from a widening European debt crisis. Twenty-one of 22 surveyed by Bloomberg expect bullion to rise on the Comex in New York next week, the third consecutive increase and the highest proportion in data going back to April 2004. Holdings in exchange-traded products backed by gold rose 27.5 metric tons this week, within 1 percent of the record set almost three months ago, data compiled by Bloomberg show.
Gold exceeded $1,800 an ounce for the first time in seven weeks on Nov. 8, and hedge funds are holding their biggest bet on higher prices since mid-September, Commodity Futures Trading Commission data show. The metal is rebounding after tumbling as much as 20 percent in three weeks in September on demand for what are perceived as the safest assets. Almost $9 trillion was wiped off the value of global equities since May and yields on Italian and Greek bonds rose to euro-era records this week.

Baltic index rises for 2nd day, outlook seen fragile
LONDON, Nov 10 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, rose for a second day on Thursday helped by firmer sentiment although cargo business was muted.    
The overall index rose 38 points or 2.11 percent to 1,840 points. Prior to the move higher, it had fallen for ten consecutive sessions previously and dropped to its lowest in two months earlier this week.

Asia Dry Bulk-Rates to rise on tighter supplies, China demand
SINGAPORE, Nov 10 (Reuters) - Freight rates for capesize dry bulk carriers on key Asian routes are expected to rise slightly on tightening vessel supplies in the Atlantic and strengthening Chinese demand for iron ore, shipbrokers said on Thursday.
Fixture rates for capesize vessels on the Brazil-China route edged up to $25.592 a tonne on Wednesday from $25.154 last week, supported by a rebound in Chinese demand and iron ore spot prices. The freight market hit a two-month low of $24.304 on Monday.

20111114 1111 Soy Oil & Palm Oil Related News.

Palm Oil May Advance to Highest Since 2008 as Harvest Slows, Mistry Says (Source: Bloomberg)
Palm oil may climb to 4,000 ringgit ($1,277) by the end of the first half, the highest since 2008, as output slows in Indonesia and Malaysia amid “buoyant” demand, said Dorab Mistry, director of Godrej International Ltd. Futures in Malaysia may advance to 3,300 ringgit a metric ton in January and “gradually” increase to 4,000 ringgit, Mistry said, keeping a forecast made in July. January-delivery futures closed at 3,135 ringgit a ton on Nov. 11 taking this year’s decline to 17 percent, snapping a two-year gain. Rising prices may lift world food costs that the United Nations predicts will stay at historically high levels this year, increasing pressure on central banks to raise interest rates. Commodities fell to a 10-month low on Oct. 4 on concern that the deepening European debt crisis may slow global economic growth and curb demand for raw materials.
“With growth in crude palm oil production decelerating and demand remaining buoyant, prices must rise,” said Mistry, who in September correctly predicted the tropical oil would drop to 2,800 ringgit last month. Demand for vegetable oils is expected to grow by 6 million tons in the 2011-2012 marketing year, outpacing global supply, Mistry said yesterday at the China International Oils and Oilseeds conference in Guangzhou. Mistry cut his estimates for this year’s palm oil production for Malaysia to 18.8 million tons from 19 million tons and Indonesia’s output to 25.2 million tons from 25.5 million tons.

Slower Harvesting
Global output growth for 2011 may be 5.5 million tons from an earlier forecast of 6 million tons, he said. Production may increase by about 2 million tons in 2012, he said. “In the last few weeks, the pace of increase has been decelerating, particularly in the case of older tall trees,” he said. “Add to that, the weather in Malaysia and in Indonesia has turned far too wet and this leads to flooding, slower harvesting and other related problems.” Production typically peaks from July to October and tapers off during the rainy season from November onwards. La Nina, a cooling of the Pacific Ocean, can increase rainfall in Malaysia and Indonesia and cause drier weather in Latin America and southern U.S. Forecast models suggest the La Nina event is likely to peak towards the end of 2011, and persist into early 2012, Australia’s Bureau of Meteorology said Nov. 9.

Stockpile Drawdown
“From November this year, we shall see a drawdown in palm oil stocks,” Mistry said. “It will become a function of price and of spreads to keep stocks in the second half of 2012 at a workable level and to prevent them from falling to a dangerously low level. As stocks decline, the new export tax structure in Indonesia will magnify those changes and create a disproportionate bullish effect on prices.” Indonesia, the largest palm grower, cut the maximum tax on refined, bleached and deodorized palm olein to 13 percent, from 25 percent, while crude palm oil will be taxed at a maximum of 22.5 percent from 25 percent earlier. The tax took effect Oct. 1. China, the world’s biggest user of cooking oils, may import larger amounts of oilseeds, vegetable oils and grains, helped by the stronger yuan, to replenish state reserves, he said.
“China will soon become the world’s largest importer of food,” he said. “Our oilseed complex is important to China and China is even more critical to price behavior with each passing year. I expect some recovery in soybean imports and crushing in China in 2012.”

U.S. biodiesel production is expected to pick up “strongly” in the second half of 2012 and Brazil and Argentina, the biggest soybean exporters after the U.S., may increase their biodiesel mandates next year, which will be positive for soybean oil prices, Mistry said. Soybean oil futures in Chicago may trade between 65 and 70 cents a pound by June 2012, he said. December-delivery soybean oil was at 50.98 cents on Nov. 11. Sunflower oil will stay at parity with soybean oil for most of this time and then move to a small premium, while rapeseed oil in Europe will remain as a premium oil, according to Mistry. The strength in rapeseed oil prices was supported by the strong demand for biodiesel in Europe and the limited supply due to lower crops in 2011, a 2 percent biodiesel mandate in Canada, strong exports to the U.S., and the lower rapeseed crop in China. “The threat of contagion can scuttle this bullish forecast,” Mistry said.
“If equities tank, for any reason, then all commodity prices will also fall and will take vegetable oil, oilseeds and meal down as well.”

Soybeans (Source: CME)
US soybean futures finished higher, recovering from losses in recent sessions on technical buying and optimistic outlooks for a pickup in demand. After recent declines, traders viewed the market as oversold, particularly with speculation surfacing that China was shopping for US and South American soybeans following recent dip in prices, analysts say. Otherwise, futures drew support from more positive sentiment for the global economy amid a more stable outlook for the euro-zone debt crisis. CBOT Jan soybeans ended up 8c at $11.75 1/2/bushel.

Soybean Meal/Oil (Source: CME)
Soy product futures closed up, rallies in unison with higher soybean prices. End-of-week position evening following recent declines added support to underpin prices, analysts said. CBOT Dec soymeal end up $1.60 at $299.50/short ton; Dec soyoil rose 0.46c to 50.98c/lb.

Soybeans Rise on Bets U.S. Crop Will Shrink; Corn Drops on Shfit to Wheat (Source: Bloomberg)
Soybeans rose on speculation that the U.S. harvest declined more than the government estimated after dry weather during the summer lowered yields. Corn fell as producers of livestock feed shifted to cheaper wheat. The U.S. Department of Agriculture cut its forecast on this year’s soybean crop for a second straight month on Nov. 9, saying production will fall 8.5 percent to 82.9 million metric tons. Some fields from Minnesota to Tennessee were the driest ever in August, data from National Climatic Center show. “The soybean crop may get smaller,” Jim Gerlach, the president of A/C Trading Inc. in Fowler, Indiana, said in a telephone interview. “There is some demand surfacing after the recent drop in prices.” Soybean futures for January delivery rose 0.7 percent to close at $11.755 a bushel at 1:15 p.m. on the Chicago Board of Trade. Yesterday, the price touched $11.67, the lowest for a most-active contract since Oct. 10. The oilseed, down 3.7 percent this week, has dropped 16 percent this year.

Soybean Prices May Extend Drop on Higher Output, Slower Demand From China (Source: Bloomberg)
Soybean prices may be poised to extend declines as supply increases from South America and demand growth may slow from China, the largest consumer. Soybeans have “room to fall” below $11.50 a bushel in the long term, said James Zhou, director of trading, Cargill Investment (China) Ltd. Prices are still relatively high, enough to sustain planting interest, so output may increase, Zhou said yesterday at a conference in Guangzhou, China. Soybeans traded at $11.755 on Nov. 11. Prices in Chicago have dropped 16 percent this year on larger crops in Brazil and Argentina, the biggest producers after the U.S., and concern the European debt crisis may curb global economic growth. Soybean imports may drop this year for the first time since 2004, the China National Grain & Oils Information Center said Nov. 11. Goldman Sachs Group Inc. last week reduced its forecast for soybeans on rising supplies.

Palm dips from 3-mth top; strong demand to buoy prices
SINGAPORE, Nov 11 (Reuters) - Malaysian palm oil futures were steady, after climbing to a three-month top in the previous session as the market was supported by a strong demand and a surprise drawdown in stocks.
"The market is down a bit because of weaker U.S. soyoil prices overnight but it's holding on," said one Kuala Lumpur-based trader. "We are entering the lean production months and demand is continuing to remain strong month after month."

Argentine rains could prompt soy area expansion
BUENOS AIRES, Nov 10 (Reuters) - Major world soy supplier Argentina got heavy rains over the last week that could set the stage for a larger-than-expected area to be planted this season, the Buenos Aires Grains Exchange said on Thursday.
The exchange did not boost its soy area estimate but said it might if good weather encourages farmers to devote more land to the crop.

India Oct palm oil imports to fall on month
NEW DELHI, Nov 11 (Reuters) - India's palm oil imports are likely to have fallen in October as they became more expensive after Indonesia tweaked export taxes to promote sales of its refined oil, a Reuters survey showed on Friday.
Palm oil imports could have dropped 12.2 percent in October to 614,375 tonnes from September, the average of forecasts in a survey of eight traders showed, while soyoil imports are likely to have risen 43 percent to 172,250 tonnes.