Monday, November 21, 2011

20111121 1810 FCPO EOD Daily Chart Study.

FCPO closed : 3191, changed : -57 points, volume : lower.
Bollinger band reading : pullback correction upside biased.
MACD Histrogram : weakening, buyer taking profit.
Support : 3200, 3150, 3100, 3070 level.
Resistance : 3250, 3270, 3300, 3350 level.
Comment :
FCPO closed recorded loss with declining volume changed hand while Friday night soy oil closed recorded loss and currently trading weaker while crude oil price slumping lower.
Dissapointing export data that show slowing down and marginally improvement released by both cargo surveyors and poor global equity markets performance resulted broad commodities and FCPO price to trade lower on fear of slowing down demand.
Daily chart formed a down doji bar candle closed below upper Bollinger band level after market opened lower, edge up higher and fall further downward followed by after lunch recovery effort back into positive zone and plunge downward again to closed near the low of the day.
Technical study suggesting a pullback correction upside biased market development testing support and resistance.
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.

20111121 1732 FKLI EOD Daily Chart Study.

FKLI closed : 1414.5, changed : -29.5 points, volume : higher.
Bollinger band reading : little downside biased with possible pullback correction.
MACD Histrogram : falling, seller taking exposure.
Support : 1400, 1395, 1385, 1375 level.
Resistance : 1420, 1425, 1435, 1440 level.
Comment :
FKLI closed recorded massive loss with increasing volume exchanged doing huge 19.5 points discount compare to cash market that closed lower. Overnight U.S. markets ended mixed and today Asia markets closed lower while European markets currently trading in negative territory.
Fear of unsolve European debts problem may further affect American banks, U.S. congress may fail to reach agreement to reduce the nation’s budget deficit and Singapore trade minister statement of slower economy growth resulted substantial sell down in global equity markets.
Daily chart formed a down bar candle closed outside lower Bollinger band after market opened gap down, slide downward gradually followed by last one and a half hour selling activities pressed market to closed near the low of the day.
Technical chart reading adjusted to suggesting a little downside biased market development with possible technical rebound.
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.

20111121 1701 Regional Markets EOD Daily Chart Study.

 DJIA chart reading :  side way range bound.
 Hang Seng chart reading : little downside biased with possible pullback.
KLCI chart reading :  little downside biased with possible pullback.

20111121 1641 Global Market & Commodities Related News.

FOREX-Euro subdued but stable, Aussie slips
TOKYO Nov 21 (Reuters) - The euro held steady in Asia on Monday after a short-squeeze rally late last week as news of an election victory for Spain's centre-right opposition was greeted with cautious optimism.  
"Essentially the euro needs a stronger European economy so as to reduce fiscal deficits. For that to happen, the euro has to fall," said Minori Uchida, a senior analyst at Bank of Tokyo Mitsubishi UFJ.

Asia Stocks Fall on U.S. Budget Impasse, Weaker Economic Growth (Bloomberg)
Asian stocks fell for a fifth day, the longest streak in almost four months, amid concern economic growth in Asia is slowing and U.S. lawmakers may fail to reduce the nation’s budget deficit. Genting Singapore Plc (GENS) and Capitaland Ltd. (CAPL) fell more than 1.6 percent, leading declines in the Straits Times Index as Singapore’s trade ministry said economic growth may slow next year. Fanuc Corp., which makes industrial robots, lost 2.1 percent after Japanese exports fell for the first time in three months. Elpida Memory Inc. (6665), the world’s third-largest memory- chip maker, sank 7.3 percent after an industry report showed Japan’s chip-equipment orders fell 33 percent from a year ago.
The MSCI Asia Pacific Index retreated 1.1 percent to 112.94 at 3:46 p.m. in Tokyo. The gauge has lost more than 1 percent in three of the last five trading sessions. The Straits Times Index (FSSTI) declined 0.4 percent, poised for the lowest close in a month. Hong Kong’s Hang Seng Index sank 1.4 percent and Japan’s Nikkei 225 Stock Average slipped 0.3 percent. “There’s likely to be a continuing impasse and people will focus on the stability of the U.S. politically,” said Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “People will probably sit on the sideline and wait for clarity.”

Japan Exports Fall as China Sees World Slump (Bloomberg)
Japanese exports dropped more than forecast in October, Singapore said its growth may slow to 1 percent next year and China signaled the global economy faces an extended slide. The reports may raise pressure on policy makers in export- reliant Asia to implement further stimulus measures. A record of the Bank of Japan’s Oct. 27 meeting today showed one board member favored adding 10 trillion yen ($130 billion) in asset purchases, and Chinese Vice Premier Wang Qishan said his nation must adopt more “forward looking” and flexible monetary policy. “Things are going to get worse before they get better,” said Vishnu Varathan, a Mizuho Corporate Bank Ltd. economist in Singapore. “Export growth will slow across Asia and we may see financial shocks coming through. Asian policy makers are going to become stimulatory all over again.”

Asian shares fall, U.S. deficit deadlock weighs
TOKYO, Nov 21 (Reuters) - Asian shares fell as uncertainty remained over how euro zone leaders would respond to mounting funding difficulties for European banks, and an apparent failure by U.S. politicians to agree on deficit reduction hurt sentiment.
"It is a minor negative, there is a few questions to be asked -- do Moody's and Fitch for example move to downgrade the U.S.," said HSBC's head of global equity strategy Garry Evans.

Corn slips as U.S. debt plan, euro zone crisis weigh on market
KUALA LUMPUR, Nov 21 (Reuters) - U.S. corn and wheat slipped in early Asian trade as euro zone debt worries and a potential failure of a U.S. debt reduction plan offset optimism that the U.S. economy may rebound in the fourth quarter.
Wheat for December delivery fell 0.17 percent to $5.97-1/4 per bushel after tumbling 3.3 percent last week because of euro zone concerns and abundant global supplies.

Algeria close to breaking grain import record
ALGIERS, Nov 20 (Reuters) - Algeria is this year close to breaking its all-time record for wheat imports, customs data showed on Sunday, after the government, worried about unrest in the wake of the "Arab Spring" uprisings, embarked on a grain buying spree.
The data seen by Reuters showed total wheat imports were 6.35 million tonnes in the January-October period of this year, up 40.5 percent on the same period in 2010.
 
Argentine soy planting makes fast progress -Gov't
BUENOS AIRES, Nov 18 (Reuters) - Sowing of Argentina's 2011/12 soy advanced at a fast clip over the last week thanks to good soil moisture in the country's main farm areas, the government said in a report on Friday.
Farmers have planted 44 percent of the record 19 million hectares forecasted for soy this season, according to the government's weekly crop progress report. Planting advanced by 14 percentage points in the week through Thursday, outstripping last season's tempo by 2 percentage points.

Dryness fears ease as rain soaks Brazil coffee
BRASILIA, Nov 18 (Reuters) - Concerns about overly-dry weather in the early stages of the development of Brazil's coffee crop have eased after good showers this week that look set to continue, a forecaster and agronomist said.
Trees had begun shedding some delicate blossoms due to dryness in the last few weeks after a burst of flowering that will essentially fix the size of the harvest in the 2012 crop in the world's No. 1 coffee grower.

Colombia '11 coffee output to miss goal but value up
BOGOTA, Nov 18 (Reuters) - Colombia's coffee growers federation said on Friday that bean production would be 8 million 60-kg bags this year, worse than earlier predictions about the impact of heavy rains on output.
This is the third consecutive year that coffee production in the world's top producer of high-quality Arabica beans will fall below the federation's target as bad weather, fungus and a tree renovation program cut output.

Brazil sugar losing competitiveness-Kingsman
SAO PAULO, Nov 20 (Reuters) - Brazil is losing its competitive advantage as a sugar producer because of rising costs, creating opportunities for beet growers like Russia and reducing world sugar trade, a senior analyst said on Sunday.
Jonathan Kingsman, managing director of consultancy Kingsman SA, told Reuters that Brazil, the world's No. 1 sugar producer and exporter, now produced sugar at a cost of 18-22 cents a lb, up from around 4 cents a lb in the 1990s.

US gov't a tenuous beachhead for biofuel firms
SAN FRANCISCO, Nov 20 (Reuters) - The U.S. military has emerged as a key ally for fledgling producers of non-food-based biofuels, who find themselves threatened by looming budget cuts and growing political hostility to renewable energy funding.
A U.S. Navy plan to cut its fossil fuel use in half by 2020 is only part of the story.

Italy 2011 biodiesel output seen down 32 pct
MILAN, Nov 18 (Reuters) - Biodiesel output in Italy, a major producer in the European Union, is set to fall to 500,000 tonnes at best this year, a 32 percent drop from 2010, hit by soaring inflows of cheaper imports, a senior industry official said on Friday.
The Italian industry produced 211,234 tonnes of biodiesel in the first six months of this year and second-half output is expected to be broadly similar, Maria Rosaria Di Somma, director general of the industry body Assocostieri-Unione Produttori Biocarburanti, told Reuters.

Gasoil shortage a ray of hope for Europe refiners
LONDON, Nov 18 (Reuters) - Embattled European refiners are heading for a rare season of decent profits this winter, despite loss-making gasoline, thanks to a roaring gasoil market.
The refining margin for making gasoil, or crack, is near 3-year highs as Russian exports are crippled by domestic regulations, U.S. exports are hitting their limit and the Asian market is struggling to source its own supplies.
 
Brent above $107, Mideast tension heightens supply concerns
KUALA LUMPUR, Nov 21 (Reuters) - Brent crude futures edged above $107 a barrel on fears that tensions over Iran's nuclear programme, and clashes in Egypt and Syria, may disrupt Middle Eastern output as demand for fuel rises ahead of the Northern
Hemisphere winter.
"At this point, the geopolitics is more important to the market because it's happening at a time when fundamentals show it's a tight market amid the peak demand season," said Gordon Kwan, head of energy research at Mirae Asset Securities Ltd. in Hong Kong.

Japan Oct crude oil import volume up 1.1 pct
TOKYO, Nov 21 (Reuters) - Japan's crude oil imports rose 1.1 percent in October from the same month a year earlier, while liquefied natural gas imports climbed more than 10 percent for the sixth straight month as gas-fired power generation continued to surge following the March earthquake, Ministry of Finance data showed on Monday.
Japan, the world's biggest LNG buyer, imported 17.9 percent more LNG from a year earlier at 6.16 million tonnes last month, marking the highest year-on-year increase since August, when the country imported 18.2 percent more LNG at a record 7.55 million tonnes.

Saudi sees balanced oil market as OPEC meeting nears
RIYADH, Nov 20 (Reuters) - The global oil market looks balanced, Saudi oil minister Ali al-Naimi indicated on Sunday, while the secretary general of the Organization of the Petroleum Exporting Countries said some producers need to cut back as Libyan output rebounds.
Speaking at the same conference in the Saudi capital with less than a month to go before OPEC meets, the head of the International Energy Agency (IEA) reiterated the major consumer group's concern that stubbornly high oil prices and tight supplies could harm fragile global economic growth.


Most China rare earth prices down on weak demand
SHANGHAI, Nov 18 (Reuters) - Prices of most Chinese rare earth slipped from a week ago on weak demand.
"A lack of confidence in the government's efforts to consolidate the rare earth mining industry is also stirring doubts that demand can be stimulated," said research firm Shanghai Metal Markets in a recent note.

U.S. deficit deadlock, euro zone weigh on copper
SHANGHAI, Nov 21 (Reuters) - Copper fell, weighed down by technical factors and the apparent failure of U.S. politicians to agree on trimming the country's deficit, while Spain's election of an austerity-minded government failed to ally fears about the euro zone's health.
"Copper will go through a period of consolidation within a bear market, which means more downside risks ahead in the longer term.  The Moving Average Convergence-Divergence (MACD) technical chart for LME copper shows a bearish trend developing, which is not helped by the absence of positive news out of the euro zone and United States," said CIFCO Futures analyst Zhou Jie.

Halt in Indonesian tin exports hitting U.S. markets
NEW YORK, Nov 18 (Reuters) - The suspension of tin ingot export shipments from Indonesian smelters last month is already creating a supply crunch for U.S. consumers, lifting premiums for higher-quality metal, which is expected to become harder to find.
Nearly in its seventh week, the shipping ban from the world's largest exporter is expected to last until the end of the year, leaving many U.S. buyers with few other reliable supply lines and mounting concerns about next year's supply contracts, market participants said.

Taiwan's China Steel to ask for iron ore delivery delays
TAIPEI, Nov 18 (Reuters) - China Steel , Taiwan's top steelmaker, plans to ask miners BHP Billiton   and Rio Tinto   to delay iron ore and coking coal deliveries as a slower global economy prompts it to cut output, a senior company official said.
Sluggish demand has forced steelmakers across Asia to curb production, although China Steel may be among the first to have sought a delay in raw material shipments.

Japan Oct copper cable shipments rise 3 pct yr/yr
TOKYO, Nov 18 (Reuters) - Japanese copper wire and cable shipments rose 3 percent in October from a year earlier to an estimated 60,700 tonnes, an industry body said on Friday.
Japan's appetite for copper, often seen as a gauge of economic activity and already weak in the wake of the global financial crisis, took a fresh beating after the March earthquake prompted user industries to reduce domestic production.  

Australian govt wins key support for mine tax
CANBERRA, Nov 21 (Reuters) - Australia's minority government won support from two key independents for its controversial 30 percent tax on iron ore and coal mines on Monday, meaning the laws should have the numbers to pass through parliament.
Independents Tony Windsor and Rob Oakeshott said they would support the mining tax laws in a vote in return for government guarantees to protect the environment against coal seam gas exploration and safeguard rural water resources.

METALS-U.S. deficit deadlock, euro zone weigh on copper
SHANGHAI, Nov 21 (Reuters) - Copper fell on Monday, weighed down by technical factors and the apparent failure of U.S. politicians to agree on trimming the country's deficit, while Spain's election of an austerity-minded government failed to ally fears about the euro zone's health.
"Copper will go through a period of consolidation within a bear market, which means more downside risks ahead in the longer term.  The Moving Average Convergence-Divergence (MACD) technical chart for LME copper shows a bearish trend developing, which is not helped by the absence of positive news out of the euro zone and United States," said CIFCO Futures analyst Zhou Jie.

PRECIOUS-Gold steady; caution prevails after Spain election
SINGAPORE, Nov 21 (Reuters) - Gold traded steady on Monday after its biggest weekly loss since September, as investors remained cautious even after Spain's centre-right opposition won a landslide victory in the election and is expected to launch drastic austerity measures.
"We still have not seen the light at the end of the tunnel yet," said Ong Yi Ling, an analyst at Phillip Futures. "We will continue to have headlines from Europe to dominate the sentiment in the market."

Gold steady; caution prevails after Spain election
SINGAPORE, Nov 21 (Reuters) - Gold traded steady after its biggest weekly loss since September, as investors remained cautious even after Spain's centre-right opposition won a landslide victory in the election and is expected to launch drastic austerit measures.
"We still have not seen the light at the end of the tunnel yet," said Ong Yi Ling, an analyst at Phillip Futures.

20111121 1215 Global Market & Commodities Related News.

GLOBAL MARKETS-Asian shares dip, euro subdued after Spanish vote
TOKYO, Nov 21 (Reuters) - Asian shares fell on Monday as uncertainty remained over how euro zone leaders would respond to mounting funding difficulties for European banks, while a crushing election win for Spain's centre-right opposition raised hopes for reforms.
"Those policies would undoubtedly be welcomed by markets, yet may not be enough to stabilize the Spanish sovereign. Ultimately, we think it is likely that the ECB will need to step up its support," Barclays Capital analysts said in a research note.

COMMODITIES-Most markets down again; oil snaps 6 weeks of gain
NEW YORK, Nov 18 (Reuters) - Most commodities fell again on Friday, with U.S. oil prices finishing their first week lower since early October on worries over Europe and selling by investors taking profit from six weeks of gains.
"Liquidations on the December contract and profit-taking ahead of the Thanksgiving holiday (next) week pulled down U.S. crude futures," said Phil Flynn, analyst at PFGBest Research in Chicago.

Japan Exports Fall as China Sees Prolonged World Slump
Japanese exports dropped more than forecast in October, Singapore said its growth may slow to 1 percent next year and China signaled the global economy faces an extended slide. The reports may raise pressure on policy makers in export- reliant Asia to implement further stimulus measures. A record of the Bank of Japan’s Oct. 27 meeting today showed one board member favored adding 10 trillion yen ($130 billion) in asset purchases, and Chinese Vice Premier Wang Qishan said his nation must adopt more “forward looking” and flexible monetary policy. “Things are going to get worse before they get better,” said Vishnu Varathan, a Mizuho Corporate Bank Ltd. economist in Singapore. “Export growth will slow across Asia and we may see financial shocks coming through. Asian policy makers are going to become stimulatory all over again.”
Japan’s finance ministry reported today that shipments abroad fell 3.7 percent in October from a year before, the first drop in three months and an indication the nation’s rebound from the record March earthquake will slow. Singapore’s trade ministry said the nation’s gross domestic product may rise 1 percent to 3 percent in 2012, after a 5 percent gain this year, in a projection that didn’t incorporate a European recession.

Saudi sees balanced oil market as OPEC meeting nears
RIYADH, Nov 20 (Reuters) - The global oil market looks balanced, Saudi oil minister Ali al-Naimi indicated on Sunday, while the secretary general of the Organization of the Petroleum Exporting Countries said some producers need to cut back as Libyan output rebounds.
Speaking at the same conference in the Saudi capital with less than a month to go before OPEC meets, the head of the International Energy Agency (IEA) reiterated the major consumer group's concern that stubbornly high oil prices and tight supplies could harm fragile global economic growth.

Oil dips on economic concerns, spread selling
NEW YORK, Nov 18 (Reuters) - Oil fell on Friday as a bout of profit-taking following big moves in spreads this week overtook early euro zone optimism.
"(Prices) got a lift early on because the ECB was buying bonds, but I think there is some skepticism about how much leeway the ECB has to support the bond market that way," said Tim Evans, energy analyst for Citi Futures Perspective in New York.

Natural gas ends down, front month hits 1-year low
NEW YORK, Nov 18 (Reuters) - U.S. natural gas futures ended lower on Friday as record high supplies and fairly mild November weather drove the front-month contract to a one-year low for the fifth straight session.
"The rig count (decline) is the only point of light for the bulls. The weather still looks above normal, and the cash market has been very weak," said Steve Mosley at SMC Advisory Services in Arkansas, noting Henry Hub cash prices have been trading at 30 cents or more below futures.

Euro Coal-Prices steady, no trades seen
LONDON, Nov 18 (Reuters) - Prompt physical coal prices were broadly steady on Friday with no fresh trades reported.  
"Yesterday and the day before there was some activity and traders today looked happy to sit the week out," one European dealer said.

20111121 1054 Malaysia Corporate Related News.

KPJ to build specialist hospital in Perlis
KPJ Healthcare, a leading private healthcare provider in Malaysia, is spreading its wings to build an eight-storey specialist centre in Pengkalan Asam, Perlis. Construction of Perlis Specialist Hospital, the first private specialist centre in the state, will begin in January, said Menteri Besar Datuk Seri Dr Md Isa Sabu at the ground breaking of phase one of the project costing RM30m. (Financial Daily)

KLK to invest RM700m in expansion
Oil palm plantation company Kuala Lumpur Kepong (KLK), with the help of the Performance Management and Delivery Unit (Pemandu), will pour RM700m into the expansion of its downstream oleochemicals operations. The company plans to add more oleochemical processing and research facilities, including a plant in Dumai, Sumatra, to its existing 13 plants in China, Indonesia, Malaysia, Switzerland, the Netherlands and Germany. (Malaysian Reserve)

DiGi forms tie-up to offer Gmail SMS
DiGi Telecommunication SB announced a strategic partnership with Google to offer Gmail Short Messaging Services (SMS) effective last Friday. DiGi was the first telecommunication company in Malaysia to offer the Gmail SMS service and the partnership was one of the many innovative ways DiGi was leveraging on to deliver its “Internet For All” promise, the company said in a statement. (Bernama)

Exxon Mobil: Gas, coal to stay as region’s main energy sources
Natural gas and coal will continue to be the main energy sources in South-East Asia, said Exxon Mobil Corporation. Senior energy advisor, corporate strategic planning department, David S. Reed said Malaysia would continue to see rising demand for electricity driven by the residential, commercial and industrial sectors, mainly for air conditioning. (Bernama)

Masterskill 3Q net profit slumps 78.8% to RM5.55m on lower enrolment
Masterskill Education Group Bhd (MEGB) net profit for the third quarter ended 30 Sept 30, 2011 fell 78.8% to RM5.6m from RM26.2m a year earlier, due mainly to lower student enrolment and higher overheads. MEGB said that its revenue for the quarter fell to RM61.2m from RM80.7m in 2010. Earnings per share fell to 1.00 sen from 9.00 sen a year earlier, while net assets per share stood at RM1.31. (Financial Daily)

20111121 1053 Local & Global Economic Related News.

Economy posts higher growth of 5.8% for 3Q
Malaysia’s economy posted a higher growth of 5.8% for the third quarter (3Q) compared to the 4.3% registered in 2Q, boosted by robust domestic demand. In an economic and financial development report released by Bank Negara Malaysia last Friday, the central bank said most economic sectors recoded improvements in growth during the quarter, with manufacturing recording a significantly better performance, supported by firm regional demand for resource-based products. (Malaysian Reserve)

Japan: Exports fall as yen gains, Europe crisis crimp demand
Japan’s exports fell for the first time in three months, indicating that the yen’s appreciation and financial turmoil in Europe are slowing the nation’s recovery from the March disaster. Shipments dropped 3.7%t in October from a year earlier, the Ministry of Finance said today in Tokyo. The median estimate of 29 economists surveyed by Bloomberg News was for a 0.3%decline. (Bloomberg)

China: Trade surplus may be gone in two years, adviser says
China’s trade surplus may disappear within two years as domestic demand rises, making the yuan rate less of an issue, an adviser to the nation’s central bank said. “In one to two years, our trade surplus will be zero,” the adviser, Li Daokui, said in an interview in Beijing today. “It’s possible for the renminbi to face depreciation pressure. If that time comes, let the market decide its fluctuation,” he said, referring to the Chinese currency.. (Bloomberg)

EU: Spain’s Rajoy wins election as crisis punishes socialists
People’s Party leader Mariano Rajoy won the biggest parliamentary majority in a Spanish election in 29 years and called on Spaniards to work together to prevent the nation being overwhelmed by the sovereign debt crisis. Spain’s 10-year bond yield rose as high as 6.8% on Nov 17, the most since the start of the euro, with the gap between Spanish and German borrowing costs ending the week at 441 basis points or 4.4%. (Bloomberg)

US: Consumer spending probably rose in October: US economy preview
Consumer spending probably climbed in October as incomes grew by the most since May, indicating the biggest part of the US economy will bolster the recovery, economists said a report will show this week. Purchases rose 0.3% last month, according to the median estimate of 69 economists in a Bloomberg News survey before Commerce Department figures due on 23 Nov. Incomes also climbed 0.3%, the report may show. (Bloomberg)

US: Economy growing at fastest pace of 2011 in US forecasts
The US economy may end 2011 growing at its fastest clip in 18 months as analysts increase their forecasts for the fourth quarter just a few months after a slowdown raised concern among investors. The index of US leading indicators, designed to foreshadow the economy’s performance over the next three to six months, rose 0.9% in October, the biggest jump since February, after a 0.1% September increase, the New York-based Conference Board said. (Bloomberg)

20111121 1045 Global Market Related News.

Asian Stocks Retreat as U.S. Debt Committee Said to Be Close to Failure (Source: Bloomberg)
Asian stocks fell for a fifth day amid concern a U.S. congressional committee will fail to agree on ways to cut the nation’s indebtedness and as Deutsche Bank AG Chief Executive Officer Josef Ackermann said Europe needs a “firewall” to contain its debt crisis. Toyota Motor Corp., which receives 24 percent of revenue from the U.S., dropped 2.3 percent in Tokyo amid concern the failure of debt talks could undermine recovery in the world’s largest economy. Fanuc Corp, a maker of industrial robots, declined 1.8 percent as Japan’s exports fell faster than estimated. BHP Billiton Ltd., the world’s biggest mining company by market capitalization and Australia’s No. 1 oil producer, fell 0.5 percent as crude traded near a 7-day low. The MSCI Asia Pacific Index retreated 0.5 percent to 113.64 at 9:51 a.m. in Tokyo, set for its longest streak of losses since August. Almost two stocks fell for each that rose on the gauge.

Japanese Stocks Decline on U.S. Deficit Talks, Europe Crisis (Source: Bloomberg)
Japanese stocks fell for a second day, sending a benchmark gauge for the lowest close since April 2009, on speculation a U.S. congressional committee will struggle to reach an agreement on deficit-cutting measures and on concern Europe’s debt crisis will linger. Honda Motor Co., Japan’s second-largest carmaker by market value, fell 2.9 percent. Sony Corp. (6758), Japan’s No. 1 exporter of consumer electronics, slid 2.4 percent after a report showed Japan’s exports declined more than expected in October. Osaka Securities Exchange Co. rose 1.9 percent after a newspaper reported the bourse will announce a merger agreement with Tokyo Stock Exchange Group Inc. tomorrow. The Nikkei 225 (NKY) Stock Average fell 0.3 percent to 8,353 as of 10:05 a.m. in Tokyo, set for the lowest close since April 1, 2009. The Topix Index dropped 0.4 percent to 716.95, heading for the lowest close since March 12, 2009, with 19 of 33 industry groups on the gauge falling.

Emerging-Market Stocks Post Biggest Weekly Loss Since September on Europe (Source: Bloomberg)
Emerging-market stocks fell, driving the benchmark index to its worst week in two months, as Europe’s debt crisis deepened and Chinese bank shares slid after home prices declined in some of its biggest cities. The MSCI Emerging Markets Index dropped 1.9 percent to 934.08 today. The gauge retreated 3.8 percent this week, the most since the week ended Sept. 23. The Bovespa index retreated 0.5 percent after a report showed Brazil created fewer jobs than forecast in October. South Korea’s Kospi index declined 2 percent and benchmark indexes fell by at least 1 percent in Russia, Poland, Hungary, South Africa and Turkey.
Banks led a 3 percent decline in the Hang Seng China Enterprises Index after new home prices fell last month in some cities including Shanghai and a person with knowledge of the matter said China’s banking regulator warned lenders that some projects backed by local governments may run out of funds. The yield on Spanish 10-year bonds rose as much as 41 basis points to as high as 6.897 percent. German Chancellor Angela Merkel yesterday rejected French calls to deploy the ECB as a crisis backstop, defying global leaders and investors calling for more urgent action to halt the turmoil.

European Stocks Drop for Second Week in Three as Crisis Spreads (Source: Bloomberg)
European stocks declined for the second week in three as sovereign borrowing costs surged to record levels in the euro area and policy makers disagreed over their response to the spreading debt crisis. Cable & Wireless Worldwide Plc sank 35 percent after suspending future dividends. Dexia SA (DEXB) and KBC Groep NV (KBC), Belgium’s biggest lenders, slumped more than 20 percent. PSA Peugeot Citroen and Renault SA paced losses on a gauge of the region’s automakers. Voestalpine AG fell the most in more than three months after cutting its earnings outlook. The benchmark Stoxx Europe 600 Index dropped 3.7 percent this week to 232.17, its lowest close in six weeks, as Italian, Spanish and French bond yields soared, renewing concern that contagion from the debt crisis is infecting more euro members. The European Central Bank was said to have bought government bonds throughout the week offering bouts of respite to equities.

U.S. Stock-Index Futures Decline as Prospects Fade for Agreement on Budget (Source: Bloomberg)
U.S. stock-index futures retreated as signs lawmakers will fail to reach an agreement to cut the budget deficit added to concern spurred by Europe’s debt crisis. Futures on the Standard & Poor’s 500 Index expiring in December dropped 0.7 percent to 1,205.50 at 8:38 a.m. Tokyo time. The benchmark gauge for American equity lost 3.8 percent last week, the biggest retreat in two months, as Spanish, French and Italian bond yields rose and Fitch Ratings said Europe’s debt crisis poses a threat to American banks. The deficit-cutting congressional supercommittee will probably say that no agreement has been reached on at least $1.2 trillion in federal budget savings, a Democratic aide said.

U.S. Consumer Spending Likely Rose in October (Source: Bloomberg)
Consumer spending probably climbed in October as incomes grew by the most since May, indicating the biggest part of the U.S. economy will bolster the recovery, economists said a report will show this week. Purchases rose 0.3 percent last month, according to the median estimate of 69 economists in a Bloomberg News survey before Commerce Department figures due on Nov. 23. Incomes also climbed 0.3 percent, the report may show. An October gain in household spending, which accounts for about 70 percent of the economy, bodes well for the holiday shopping season that kicks off this week. Improving demand and the year-end expiration of a tax break may also spur companies to buy more equipment in the final months of 2011, helping the U.S. weather the effects of Europe’s debt crisis.

Fed’s Williams Says Fiscal Actions ‘Badly Needed’ to Spur Economic Growth (Source: Bloomberg)
Federal Reserve Bank of San Francisco President John Williams called for fiscal aid for the economy, saying government actions beyond Fed easing are imperative for bolstering the recovery and reducing joblessness. “Strong countercurrents” including a decline in wealth, tight credit and concern about financial markets are impeding growth, Williams said today at a forum in Santiago. “Fiscal policy actions that reduce uncertainty and stimulate recovery are badly needed” and should “work in tandem with monetary policy,” he said. Fed officials are increasingly calling on other parts of government to help lower unemployment that Williams forecasts will remain above acceptable levels until 2016. He cited as an example a recent U.S. government program to let more homeowners refinance mortgages, which could lower foreclosures and give a “modest boost” to consumption.

Treasuries Rise as Possible Budget Committee Failure Spurs Refuge Demand (Source: Bloomberg)
Treasuries rose, becoming the best- performing major bond market over three months, including currency changes, as stocks fell on speculation U.S. lawmakers will fail to agree on how to cut the budget deficit. U.S. securities extended a gain from last week that was driven by concern Europe’s leaders aren’t able to contain the region’s debt crisis, boosting demand for haven assets. The Treasury Department is scheduled to sell $35 billion of two-year notes today, the first of three auctions of coupon-bearing debt this week totaling $99 billion. “The policy in the U.S. is as bad as the policy in Europe,” said Roger Bridges, who oversees the equivalent of $15 billion of debt as the Sydney-based head of fixed income at Tyndall Investment Management Ltd., a unit of Japan’s Nikko Asset Management Co. “Investors will be attracted in a flight to quality,” to U.S. government debt.

Southeast Asian Slowdown Looms as Thai Floods Compound Europe Demand Slump (Source: Bloomberg)
Growth in Southeast Asian economies including Malaysia and Thailand may have peaked last quarter as the European debt crisis and Thai floods hurt the outlook for exports, adding pressure on policy makers to cut interest rates. Malaysia’s gross domestic product increased 4.8 percent in the three months through September from a year earlier, after a 4 percent expansion the previous quarter, according to the median of 25 estimates in a Bloomberg News survey. Thailand’s growth probably quickened to 4.5 percent from 2.6 percent, according to a survey of 11 economists. “Exports will likely soften in the coming months as Europe slides into a recession,” said Chua Hak Bin, a Singapore-based economist at Bank of America Merrill Lynch. “Both Bank Negara Malaysia and Bank of Thailand will keep their options open and ease if growth readings turn ugly in coming months.”

Japan Exports Fall on Yen Gains, Europe Crisis (Source: Bloomberg)
Japan’s exports fell for the first time in three months, indicating that the yen’s appreciation and financial turmoil in Europe are slowing the nation’s recovery from the March disaster. Shipments dropped 3.7 percent in October from a year earlier, the Ministry of Finance said today in Tokyo. The median estimate of 29 economists surveyed by Bloomberg News was for a 0.3 percent decline. The report suggests the rebound of the world’s third- largest economy from the record earthquake in March is losing momentum. Weakening overseas demand has led companies including Toshiba Corp. and Nippon Yusen K.K. to call on the government to follow up on last month’s yen intervention with steps to prevent the currency from appreciating further.

Singapore Economic Growth May Slow in 2012 (Source: Bloomberg)
Singapore said its economic growth may slow next year, extending a moderation in expansion that’s already prompted the central bank to ease monetary policy. The economy will grow 1 percent to 3 percent in 2012 after expanding 5 percent this year, the trade ministry said in a statement today. Non-oil domestic exports will probably rise 2 percent to 3 percent in 2011, lower than a previous forecast for shipments to grow 6 percent to 7 percent, the trade promotion agency said in a separate statement today. Europe’s debt crisis and disruption caused by flooding in Thailand threaten to hurt Southeast Asian growth, pressuring officials to shield their economies. Indonesia cut interest rates to a record low this month, and Singapore’s central bank, which uses the exchange rate to manage inflation, said in October it will slow gains in the local dollar.

‘Hard Times Ahead’ After Election Win: Rajoy (Source: Bloomberg)
Mariano Rajoy won the biggest parliamentary majority in a Spanish election in almost 30 years, and told Spaniards to brace for difficult times as the nation fights to avoid being overwhelmed by the debt crisis. Rajoy’s People’s Party swept the ruling Socialists from power after eight years, winning 186 of the 350 seats in Parliament, compared with 110 for the ruling party’s candidate Alfredo Perez Rubalcaba. That’s the worst result for the Socialists in more than three decades. Opinion polls in the month before the vote showed the PP winning 184 to 198 seats. “Hard times lie ahead,” Rajoy told supporters outside the PP’s headquarters in Madrid, giving no new details of his plans. “We are going to govern in the most delicate situation Spain has faced in 30 years.”

Monti Wins Final Confidence Vote as Government Moves to Tackle Debt Crisis (Source: Bloomberg)
Italian Prime Minister Mario Monti won a final parliamentary confidence vote, granting full power to his new government after pledging to spur growth and reduce debt in the euro-region’s third-largest economy. The 630-seat Chamber of Deputies voted 556 to 61 in favor of Monti’s new administration of technocrats, following the Senate’s approval yesterday. Monti said today he wanted his government to last until elections scheduled in 2013, though that depended on retaining the support of parties. The Northern League’s lawmakers 59 voted against him today. “I know that the economic, social and political crisis is due to the serious malfunction of the financial situation and the markets, but I believe that the first thing to do, and I say this particularly to the Italians, is to stop being so comfortable with saying that others are responsible,” the former European Union commissioner told lawmakers in Rome.

Yen, Dollar Advance on Haven Demand as Prospects Fade for U.S. Debt Accord (Source: Bloomberg)
The yen and the dollar rose against most of their major counterparts on demand for safer assets after a Democratic aide said a U.S. congressional committee is likely to announce today it failed to agree on deficit cuts. The Australian dollar declined for a sixth day against the yen as futures showed U.S. stocks will fall, damping demand for higher-yielding currencies. The euro held last week’s biggest loss versus the yen since September even as Spain’s opposition won a parliamentary majority in a general election. “If the agreement isn’t reached, then that does lead to a spike in risk aversion,” said Joseph Capurso, a Sydney-based currency strategist at Commonwealth Bank of Australia, the nation’s biggest lender. “That would support the U.S. dollar and also perhaps gives a little bit of support for the yen.”

20111121 1044 Global Commodities Related News.

Hedge Funds Cut Bullish Bets by Most in Seven Weeks on Europe: Commodities (Source: Bloomberg)
Hedge funds cut bullish commodity bets by the most in seven weeks on mounting concern that Europe’s debt crisis will restrain global economic growth and demand for raw materials. Money managers reduced combined net-long positions across 18 U.S. futures and options by 10 percent to 754,558 contracts in the week ended Nov. 15, Commodity Futures Trading Commission data show. That’s the biggest decline since the seven days ended Sept. 27. Sugar wagers fell 30 percent, the most since December 2008, and bets on lower copper prices almost doubled.
More than $2 trillion was erased from the value of global equities last week as the MSCI All-Country World Index fell for five consecutive days, the longest losing streak since August. Rates on French, Belgian, Spanish and Austrian bonds rose to euro-era records above German bunds and the cost of insuring against default on Western European debt reached an all-time high. The European Central Bank bought sovereign debt for five days as policy makers failed to agree on containing the crisis.

Corn (Source: CME)
US corn futures end lower on weak export demand and technical selling. The market was unable to maintain early gains, instead extending losses after a 4% drop Thursday. Lackluster export demand is looming over the market, and the market's recent losses have added technical pressure. The only consolation for bulls is that the market held above $6/bushel and rebounded some. CBOT December corn finished down 4 1/4c at $6.10, off 28 1/4c on the week.

Wheat (Source: CME)
US wheat futures end mostly higher, rebounding from yesterday's steep losses amid short-covering and end-user buying. Market rebounded after falling to fresh four-month low Thursday, as poor export demand has loomed over the market. However, farmer selling has remained tight, and worries about the hard red winter wheat crop have underpinned prices. Traders note spread trade today, with buying of wheat and selling of corn. CBOT Dec wheat ends up 5 3/4c, or 1%, to $5.98 1/4 a bushel, but loses 17 1/2c on the week. KCBT Dec wheat ends up 2c to $6.68 1/2; MGEX Dec wheat ends down 7 3/4c to $9.17 1/4.

Rice (Source: CME)
US rice futures continue to slump, ending lower as weak demand and speculative selling weigh on prices. Jan futures now down 15.6% since Oct 25, and prices are at four-month lows. Poor export demand the key bearish factor. Price Futures Group VP Jack Scoville says end-users are buying at these cheaper prices, however. Jan CBOT Rice ends down 3 1/2c to $14.68 a hundredweight.

US soy, wheat rise after selloff, corn struggles
SINGAPORE, Nov 18 (Reuters) - U.S. soy rose half a percent  as the market recovered after two straight days of losses on hopes of strong demand from China, while wheat gained on bargain-hunting following a decline to a four-month low.
"We see bargain hunting taking place because of the sharp drop yesterday as China will take this opportunity to buy more soybeans," said Ker Chung Yang, an analyst at Phillip Futures in Singapore.

EU to import less corn as harvests big crop-Toepfer
HAMBURG, Nov 17 (Reuters) - The harvest of a large European Union maize crop, now underway, means the EU is likely to import less corn in coming months, Germany's largest grain trading house Toepfer International said on Thursday.
Toepfer forecasts the EU 2011 corn crop will amount to 64.014 million tonnes, sharply up from 54.605 million tonnes last year.

Drier weather speeds U.S. harvest this week
CHICAGO, Nov 17 (Reuters) - Drier weather in the U.S. Midwest through Saturday will help boost final harvest of the 2011 corn and soybean crops, an agricultural meteorologist said on Thursday.
Most of the heavier rainfall this week has been in the far southeast, away from the big harvest areas of the Midwest.

Russia harvests 97.5 mln T grain so far-AgMin
MOSCOW, Nov 17 (Reuters) - Russia has harvested 97.5 million tonnes of grain by bunker weight from 98.1 percent of the harvesting area of 42.98 million hectares by Nov. 16, Agriculture Ministry data showed on Thursday.  
The grain crop was up from 63.7 million tonnes a year ago, but down from the 101.9 million harvested by the same date in 2009.    

Italy 2011 maize output up, wheat down-ISTAT
MILAN, Nov 17 (Reuters) - Maize output in Italy, a major producer in Europe, rose nearly 12 percent to 9.58 million tonnes this year due to increased planted areas, Italy's statistics agency ISTAT said on Thursday in its first estimate of the 2011 maize crop.
Maize output rose from 8.57 million tonnes in 2010 driven by an increase of plantings to 1.02 million hectares in 2011 from 926,776 ha last year, ISTAT data showed.

Canada Cuts Grain, Oilseed Forecasts (Source: CME)
Ending stocks of the major grains and oilseeds in Canada at the close of the 2011/12 (Aug/Jul) crop year are forecast to be down slightly from earlier estimates, according to the latest supply/demand tables from Agriculture and Agri-Food Canada's market analysis division released Thursday. Canola was the only crop that saw any major adjustments on the month, with projected export and domestic demand both seeing a slight increase. Ending stocks of the eight major grains and oilseeds in 2011/12 were pegged at 10.140 million metric tons, which was down slightly from the October projection of 10.290 million and well below the 2010/11 level of 13.041 million. The eight major grains and oilseeds include: canola, flaxseed, soybeans, wheat, oats, barley, corn and rye. Production of the eight major grains and oilseeds in 2011/12 was left unchanged from October at 62.676 million tons. This compares with the 2010/11 level of 62.973 million.
Total exports of the eight major grains and oilseeds in the 2011/12 crop year were projected at 31.203 million tons. This would be a small increase from the 31.103 million tons estimated in October but below the 2010/11 level of 32.143 million. Total domestic usage of the various grains and oilseeds for the 2011/12 crop year was estimated at 36.498 million tons. This was up fractionally from the October projection of 36.447 million tons and above the 2010/11 level of 35.680 million. November estimates for Canadian 2011/12 and 2010/11 grain and oilseed supply and demand. Domestic usage numbers include food and industrial use as well as feed, waste, and dockage.

Argentina Exchange Lifts Soy, Wheat Forecast (Source: CME)
Argentina's farmers are going to plant more soybeans than originally forecast thanks to good planting conditions and the resilience of the crop ahead of a dry spell expected last through the first half of January, the Buenos Aires Cereals Exchange said Thursday. Soy planting area is now seen at 18.85 million hectares, up from 18.60 million hectares estimated last week, according to data published on the exchange's website. So far 37.4% of the expected soy has been planted. The Buenos Aires Cereals Exchange has yet to forecast production, but the Rosario Grain Exchange is expecting the soy crop to total 49.5 million metric tons, the second-largest ever. Argentina is the world's top soymeal and soyoil exporter and ranks third in global soybean exports. The 2009-10 season holds the record for total soybean production, when 54.5 million tons were harvested. The beans are Argentina's top export and a key source of hard currency and tax revenue for the government.
Planting conditions are good after recent showers soaked Argentina's fields, but farmers are concerned that a developing La Nina weather system could bring dry conditions as it did in 2008-09. However, weather specialists expect the La Nina effect to be relatively mild this season. La Nina is seen bringing a long dry stretch from November through the first half of January, before rains bring relief to thirsty crops. La Nina refers to cooling of the equatorial Pacific Ocean that usually brings dry weather to the farm belts of Argentina, Uruguay, Paraguay and the south of Brazil. El Nino is the opposite, with warming ocean temperatures and heavier-than-normal rainfall in those areas. The Buenos Aires exchange also raised its forecast for 2011-12 wheat production to 13 million tons, up from 12.6 million tons estimated last week. That's down 17% on the year, according to the exchange.
Argentina is a leading global wheat exporter, with most shipments going to neighboring Brazil. So far 14.1% of the crop has been harvested. Estimates for Argentina's 2011-12 crop production in millions of hectares (HA) or millions of metric tons (MT) (One hectare equals 2.47 acres).

Kazakhstan Stops Issuing Grain Export Licenses (Source: CME)
Kazakhstan will stop issuing licenses for grain exports from Feb. 1 in an attempt to ease administrative pressure on its agriculture sector, the Ukrainian Grain Association said. The UGA said the Ministry of Agriculture of Kazakhstan plans to cancel issuing the licenses to "ease the work of entrepreneurs." Currently, traders are required to have a license to export grains from Kazakhstan, which takes around 10 days after appropriate documents are provided to the government, the UGA said. Cheaper wheat from the Black Sea region is giving European grain a run for its money, with production in the Commonwealth of Independent States, a regional organization of former Soviet countries, exceeding expectations. Last week the U.S. Department of Agriculture said it expects Kazakhstan to reap 21 million metric tons of wheat in 2011-12, and export around 11 million tons.
Kazakhstan's grain total grain harvest was 12.2 million tons last year because of drought, and the country exported only 5.9 million tons of grain in 2010-2011.

China Corn Prices To Remain Stable (Source: CME)
China's corn prices will likely remain mostly stable despite a bumper harvest, the State Grain Administration said in a statement on its website. The statement gave no details on the size of the harvest. China's National Grain and Oils Information Center, the administration's research arm, estimated the crop at a record 184.5 million metric tons this year, up 4% from last year. The administration also said the government will stockpile corn this year, but didn't elaborate on quantity and price. The stockpiling will likely prevent domestic corn prices from falling further, analysts said. Corn prices have fallen more than 15% since reaching a record in September, as supply was tight before harvest time.

India May Drop Rice Boost Plan (Source: CME)
India may drop its plan to pay more than the state-fixed minimum purchase price for rice this marketing year as procurement by government agencies is progressing well without paying any extra incentives to farmers, two farm ministry officials said. The government was planning to pay an additional INR80 ($1.56) to the current minimum purchase price of INR1,080 per 100 kilograms to encourage farmers to sell to state-run agencies. The agencies have so far been able to procure sufficient quantities from the new season's crop and government stocks are expected to be comfortable without paying the additional price, the officials, who didn't want to be named, told Dow Jones Newswires. Paying the additional price now may only have an indirect impact on inflation, while achieving little in boosting supplies. Until Tuesday, state-run agencies had bought 9.9 million metric tons of rice from farmers and the government's rice stocks are more than double of what it requires for welfare programs.
The government had procured around 34 million tons of rice in 2010-11.

ICE sugar, cocoa edge off lows as dollar eases
LONDON, Nov 18 (Reuters) - ICE sugar, cocoa and arabica coffee futures edged up, supported partly by a slightly weaker dollar but concerns about the deepening debt crisis in the euro zone helped to cap gains.
Raw sugar futures edged up, rebounding slightly from the prior session's five-month low.

Ghana's Cocobod says carriers' strike over
ACCRA, Nov 17 (Reuters) - Ghana's cocoa regulator Cocobod said port carriers had called off a week-long strike over pay and conditions and that exports from the world's second biggest grower could resume shortly.
Cocobod spokesman Noah Amenyah said the next load of cocoa had been due to leave docks on Dec. 1 but added: "Now that the strike is over the ships may push forward the loading dates. But I cannot confirm yet any new date."

ISO sees wider global sugar surplus in 2011/12
LONDON, Nov 17 (Reuters) - The International Sugar Organization on Thursday forecast a global sugar surplus of 4.46 million tonnes in 2011/12, but was not certain that the surplus phase would continue into 2012/13.
"First tentative indications show that next season (2012/13) world production may equal global use of sugar," said the report.

India's Maharashtra so far produces 20 pct less sugar in 2011/12
MUMBAI, Nov 17 (Reuters) - India's top sugar producer Maharashtra has so far produced 20 percent less sugar than at the same point last year as cane crushing faced delays over a cane price dispute, an industry official said.
Crushing momentum has now picked up, however, after farmers and millers agreed on cane pricing, said the official at the Maharashtra State Cooperative Sugar Factories Foundation, who declined to be named.

Euro Coal-Prices little changed by strike, lower oil
LONDON, Nov 17 (Reuters) - Prompt physical coal prices rose by a marginal 25 cents a tonne on Thursday, little affected by a strike and by falls in oil prices and equities, while few trades were reported.
Such a minimal price movement percent in coal does not indicate any significant change in demand or supply, traders said.

India coal stocks fall slightly to 11 million T
LONDON, Nov 17 (Reuters) - Coal stockpiles at India's ports fell slightly since mid-September to 11 million tonnes from 12 million, importers said, but weak cement sector demand and rail bottlenecks are likely to keep stock levels high, according to some of India's biggest importers.  
Until the unsold tonnage shrinks, which could take months, Indian buyers are unlikely to return to the spot market for large fresh purchases despite the growing coal supply crisis which is causing power shortages across the country

Asia Coal-Australia thermal coal prices drop with China demand
PERTH, Nov 17 (Reuters) - Australia's thermal coal prices fell below $114 per tonne during the past week as demand from China, the world's largest consumer of the fuel, remained weak.  
Thermal coal on the global COAL Newcastle index for the week to date closed at $113.50 per tonne on Wednesday, down from $116.50 per tonne a week earlier, with a bid for January delivery at $113.50 per tonne.

Oil Drops a Third Day as Japanese Exports Drop, Singapore Sees Slowdown (Source: Bloomberg)
Oil dropped for a third day in New York as investors speculated that fuel demand may falter amid signs of slowing global economic growth in Asia and debt crises in the U.S. and Europe. Futures slipped as much as 0.6 percent after falling 1.4 percent on Nov. 18. Japan reported the first decline in exports in three months and Singapore said economic growth may slow next year. Spain replaced its government in elections, while a U.S. congressional supercommittee may announce today it has failed to agree on cutting the federal budget deficit. The oil market is balanced and there is no oversupply, Saudi Arabian Oil Minister Ali Al-Naimi said. “The market got ahead of itself a little too quickly,” said Jonathan Barratt, a managing director of Commodity Broking Services Pty in Sydney. “There’s still issues in Europe and there appears to be problems with the super committee.”

Myanmar's diesel imports up 40 pct on economic growth - traders
SINGAPORE, Nov 18 (Reuters) - Myanmar's monthly diesel imports have increased by more than 40 percent since October to fuel its growing manufacturing, agriculture and transport sectors, industry sources said.
Myanmar's imports of the product have increased from 35,000 tonnes a month to about 50,000 tonnes a month currently, according to estimates by three sources dealing directly with the country's diesel market.

India's Oct iron ore exports down by a third-trade
Nov 16 (Reuters) - Indian iron ore exporters shipped about 33 percent less of the steel-making ingredient in October as a fall in global prices made high costs unviable, although they are seen benefiting from this month's price reversal and a weaker rupee.
Iron ore exports from India, the world's third biggest exporter of the raw material, fell to 4.55 million tonnes in October from 6.87 million tonnes a year ago, the Federation of Indian Mineral Industries said in a statement.

Copper Traders Most Bearish in Two Months on European Crisis: Commodities (Source: Bloomberg)
Copper traders and analysts are the most bearish in almost two months because of mounting concern that Europe’s debt crisis will curb demand in the region that accounts for about 19 percent of global consumption. Eleven of 23 surveyed by Bloomberg expect the metal to decline, the second consecutive week that their outlook worsened and the highest proportion since Sept. 23. The last time so many were bearish, prices dropped 4.6 percent the following week. The commodity fell more than 20 percent into a bear market since reaching a record in February on signs that economic growth is slowing. European industrial production fell the most in 2 1/2 years in September as governments grappled with sovereign debt crises that have toppled governments in Greece and Italy. Copper demand contracted 0.9 percent in 2008 as economies contended with the worst recession since World War II.

Gold Prices to Stay ‘Strong for Some Time’, Australia’s St. Barbara Says (Source: Bloomberg)
St. Barbara Ltd., an Australian gold producer, said it is focused on reducing costs amid forecasts for the price of the metal to “remain strong.” “I think the price, and the consensus seems to be that the price, is going to remain strong for some time,” St. Barbara Chief Executive Officer Tim Lehany said in an interview on the Australian Broadcasting Corp.’s “Inside Business” program today. “There will be a lot of short-term volatility.” Gold is in the 11th year of a bull market and futures reached a record $1,923.70 an ounce on Sept. 6 as investors sought alternatives to slumping equities and some depreciating currencies. Gold for delivery in December on Nov. 18 advanced 0.3 percent to $1,725.10 on the Comex in New York.

MF Trustee: Goal To Return 100% Of Customer Assets (Source: CME)
The trustee unwinding MF Global Holdings Ltd.'s (MFGLQ) brokerage said that his primary goal is to return 100% of customer assets as quickly as possible but that ultimate distributions are dependent upon assets available. The trustee, James W. Giddens, said that there is no assurance of a 100% return. He said he hopes to return the assets as promptly as permitted by the Commodities Exchange Act and the Securities Investor Protection Act and authorization by the U.S. Bankruptcy Court. The plan for the resolutions of commodities claims is to make distributions through "bulk transfers" to future commission merchants willing to accept the transfers. The first bulk transfer has recently been compiled and the second bulk transfer is underway, Giddens said. The feasibility of any bulk transfer is dependent upon finding future commission merchants to receive such assets, he noted.
The first transfer was aimed at avoiding forced liquidations of future positions held by claimants and severe market disruption, with more than 3 million positions worth $100 billion. Upon approval by a judge, the positions of approximately 14,500 customers were transferred to the future commission merchants, Giddens said. Customers, upon notifications, had immediate access to their accounts. The second bulk transfer to approximately 23,000 customers holding cash only in the accounts as of the date of Oct. 31, the date of the company's bankruptcy, was authorized by the bankruptcy court on Thursday. Giddens said second transfer's success requires finding future commission merchants to process the transfers. It is expected that funds will be accessible within a week or so, he said. The third phase of distributions is a proposed additional bulk transfer for all claimants to "true-up" the value of their distributions to 60% of the net equity in their accounts.
Giddens said the assets he has control of are substantially less than the estimated allowed commodities claims. He noted efforts are ongoing to analyze the cause of the "short-fall" and to seek a solution with regulators and law enforcement officials. Giddens has already received court permission to transfer nearly all the 38,000 accounts he's overseeing in the wake of MF Global's collapse. While the holding company is in bankruptcy, Giddens is unwinding the brokerage under the terms of the Securities Investor Protection Act. MF Global filed for bankruptcy protection last month after a tentative deal to sell its assets to Interactive Brokers Group Inc. (IBKR) collapsed. Its brokerage is being liquidated, but the holding company has been in talks to obtain debtor-in-possession financing that could possibly allow it to restructure.

$100 crude oil bad news for grain freight: 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 18 (Reuters) - Sluggish global grain trade has been one of the factors weighing heavily on crop prices in recent weeks, but things could get worse in the months ahead  if crude oil prices continue their upward climb to increase the cost of importing goods and commodities.
Crude oil in the New York futures market this week topped $100 per barrel for the first time in nearly four months.

Baltic sea index up, ship industry turmoil grows
LONDON, Nov 17 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, rose for a third day on Thursday helped by firm iron ore bookings to China.
Nevertheless, the shipping sector was set to see more turmoil in the coming months as a supply glut and growing economic gloom would keep earnings under pressure.

Shipping companies show strain as industry struggles
COPENHAGEN, Nov 17 (Reuters) - Oil tanker company General Maritime Corp filed for bankruptcy protection and Denmark's Torm said it was in talks with creditors on Thursday as both fell victim to a glut of ships in the world fleet and gathering global economic gloom.  
Bankers expect more bankruptcies and restructuring in the sector as companies struggle with a worsening world economic crisis and lower earnings driven by a build-up of ships ordered when times were good.

Asia Dry Bulk-Rates to rise on strong China iron ore demand
SINGAPORE, Nov 17 (Reuters) - Freight rates for capesize dry bulk carriers on key Asian routes are expected to increase over the next week as iron ore shipments to China rise, shipbrokers said on Thursday.
Fixture rates for capesize vessels on the Brazil-China route rose to a two-week high of $27.646 a tonne on Wednesday from $25.592 last week, supported by a recovery in Chinese demand and rising iron ore spot prices.

20111121 1043 Soy Oil & Palm Oil Related News.

ITS CPO export up 0.58% to 1,037,923 tonnes for the period of 1~20 Nov 2011.
SGS CPO export flat 0% to 1,033,040 tonnes for the period of 1~20 Nov 2011.

Soybeans (Source: CME)
US soybeans end steady, stabilizing after choppy trading today. Analysts view current prices as a good reflection of fair market value, reflective of renewed export interest from foreign buyers, particularly China, analysts said. Uncertainty surrounding the global economy in the face of the euro-zone debt crisis, continue to limit investor's appetite for risk. However, traders are mindful that if prices slump too far, supplies could tighten to more uncomfortable levels, analysts added. CBOT Jan soybeans end unchanged at $11.68 1/4/bushel.

Soybean Meal/Oil (Source: CME)
Soy-product futures end mixed, with traders unwinding some positions ahead of the weekend. Soyoil was hit by spillover pressure from declines in crude oil, a feature that may weaken biodiesel margins, analysts note. But soymeal was lifted by a recent upturn in demand. CBOT December soyoil dropped 0.52c to 50.88c/pound while soymeal rose $3.90 to $298.40/short ton.

Palm little changed, flirts with 5-mth highs
JAKARTA, Nov 18 (Reuters) - Malaysian palm oil futures were little changed in a volatile session, trading near five-month highs on support from  lower output expectations and strong Chinese demand, while euro zone debt jitters limited the upside.  "It's been raining every day here and supporting the palm price," a Kuala Lumpur-based trader said. "It's overplayed but we are getting a lot of rain in the north of the country.

Argentina govt sees soy area at 19 mln hectares
BUENOS AIRES, Nov 17 (Reuters) - Argentina's 2011/12 soybean area is seen at 19.0 million hectares, up a touch from 18.9 million hectares last season, the Agriculture Ministry said on Thursday in its first forecast for the crop.
The government forecast came just after the Buenos Aires Grains Exchange said it expected that 18.85 million hectares would be planted with 2011/12 soy, up from its week-earlier view of 18.60 million hectares.

Pakistan's palm oil import from Indonesia seen tripling in 2012
ISLAMABAD, Nov 17 (Reuters) - Pakistan is expected to at least triple palm oil purchases from Indonesia next year after a trade agreement between the two countries reduced import duties for the edible oil by about 15 percent, senior industry officials said on Thursday.
Pakistan, the world's fourth largest buyer of palm oil, purchases more than 90 percent of its needs from Malaysia, as its crude palm oil and products have enjoyed lower import duties since 2007.