Tuesday, November 22, 2011

20111122 1814 FCPO EOD Daily Chart Study.


FCPO closed : 3175, changed : -16 points, volume : higher.
Bollinger band reading : pullback correction upside biased.
MACD Histrogram : weakening, buyer taking profit.
Support : 3150, 3100, 3070, 3050 level.
Resistance : 3200, 3250, 3270, 3300 level.
Comment :
FCPO closed recorded small loss with improved volume participation while overnight soy oil closed recorded substantial loss and currently having technical rebound while crude oil price also edge up higher.
Fear of slowing down demand triggered trader to lock in profit after recent rally avoiding further downside risk.
Daily chart formed a down doji bar candle closed in between middle and upper Bollinger band level after market opened 1 tick lower edge upward into positive territory and slump lower tested 1 week low followed by upward rise into positive zone again before surrendered downward to closed off the high of the day.
Chart reading remained 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.

20111122 1743 FKLI EOD Daily Chart Study.

FKLI closed : 1424, changed : +9.5 points, volume : higher.
Bollinger band reading : pullback correction little downside biased.
MACD Histrogram : falling, seller taking exposure.
Support : 1420, 1400, 1395, 1385 level.
Resistance : 1425, 1435, 1440, 1445 level.
Comment :
FKLI closed recorded gains with soaring volume transacted doing 14 points discount compare to cash market that ended little higher. Overnight U.S. markets ended recorded loss and today Asia markets closed mixed while European markets currently rebounding higher after overnight recorded huge losses.
Standard & Poor and Moody's rating agency reaffirmed U.S. credit rating despite negative development over U.S. decifit cut plan and unsolved European debt problem and World Bank statement on Asia can withstand Europe shocks and sees soft landing for China resulted some markets to rebounding higher.
Daily chart formed an up bar candle with upper shadow still closed outside lower Bollinger band after market opened lower and traded in recovery upwards swing movement into positive territory and eased little lower to closed off the high of the day.
Chart study adjusted to suggesting a pullback correction little downside biased market development having technical rebound 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.

20111122 1700 Regional Markets EOD Daily Chart Study.

 DJIA chart reading :  little downside biased with possible pullback.
 Hang Seng chart reading : pullback correction little downside biased.
KLCI chart reading :  pullback correction little downside biased.

20111122 1558 Global Market & Commodities Related News.

Asian Stocks Fall for Sixth Day After U.S. Debt-Cutting Failure (Bloomberg)
Asian stocks fell for a sixth day, with a regional benchmark index set for the longest losing streak since August, after a congressional committee charged with reducing the U.S. deficit failed to agree on cuts. James Hardie Industries SE (JHX), a building-materials supplier that gets 68 percent of sales from the U.S., fell 1.5 percent. China Resources Land Ltd. (1109), a state-controlled developer, declined 2.2 percent amid concern property sales are slowing. Osaka Securities Exchange Co. rose 4.6 percent after Tokyo Stock Exchange Group Inc. agreed to acquire the bourse. OneSteel Ltd. slumped 11 percent in Australia after its chief executive officer said he won’t rule out shutting the steelmaker’s main plant. The MSCI Asia Pacific Index declined 0.1 percent to 112.23 as of 4 p.m. in Tokyo after swinging between gains and losses at least six times. Eight out of 10 industries on the index dropped, with five stocks falling for every four that rose.

Emerging Stocks 35% Discount Lures Goldman as Brazil to China Ease Policy (Bloomberg)
Emerging-market stocks are trading at levels 35 percent cheaper than their 15-year average as rising profits and falling interest rates from Brazil to Indonesia buoy investor confidence. While the MSCI Emerging Markets Index’s 9.7 percent gain from this year’s low on Oct. 4 lifted its price-earnings ratio to 10.3 from 9.7, the gauge is still trading below its mean since 1996, according to data compiled by Bloomberg. The measure jumped an average 35 percent after developing-nation policy makers began cutting interest rates in 2003, 2005 and 2008.
Investors pulled $26 billion from emerging-market mutual funds in the first nine months and the stock indexes sank about twice as much as advanced nations after Indonesia, Poland and Brazil raised interest rates. Now borrowing costs are coming down as policy makers seek to spur expansions at a time when export growth and inflation are slowing. The MSCI index may rise 30 percent in a year as record earnings outweigh Europe’s debt crisis, more than 17,000 forecasts compiled by Bloomberg show.

Japanese Stocks Retreat After Failure of U.S. Deficit-Cutting Committee (Bloomberg)
Japanese stocks fell for a third day, with the Nikkei 225 Stock Average closing at its lowest level since March 2009, after a U.S. Congressional committee failed to agree on deficit cuts. Nomura Holdings Inc. (8604), a brokerage that gets about 38 percent of revenue from the U.S. and Europe, dropped 1.7 percent. Central Japan Railway Co. (9022), the operator of the country’s busiest high-speed railway, slid 6.3 percent after agreeing to cover the entire cost of building stations for a magnetic-train line. Osaka Securities Exchange Co. climbed 4.6 percent after rival Tokyo Stock Exchange Group Inc. agreed to buy the bourse operator for at 129.6 billion yen ($1.68 billion). “Investors are a bit fed up with politicians generally,” said Prasad Patkar, who helps manage about $1 billion at Platypus Asset Management Ltd. in Sydney. “Politicians have been behind the curve all along, and I think the market is feeling uneasy about that.”

Asia shares fall after U.S. deficit deadlock
SINGAPORE, Nov 22 (Reuters) - Asian shares edged down as fears about the ability of politicians on either side of the Atlantic to tackle huge debt burdens sapped investors' confidence in the outlook for Western economies.
"The S&P index has broken sharply lower and looks technically pretty dire, despite more OK data as the Chicago Fed index bounced slightly and the overhang of unsold homes dipped back to a lower but still high 8 months," said Kit Juckes, head of foreign exchange research at Societe Generale.

FOREX-Dollar near 6-wk high as sovereign debt crisis dominates
TOKYO, Nov 22 (Reuters) - The U.S. dollar stayed near a six-week high against a basket of currencies after a sharp pullback in global risk appetite as the sovereign debt storm intensified on both sides of the Atlantic.  
"There is no fundamental change in the markets' risk averse mood. There's been no clear progress in the euro zone," said Koji Fukaya, chief FX strategist at Credit Suisse.

Wheat, corn rebound after prices encourage buying
KUALA LUMPUR, Nov 22 (Reuters) - Grains rose, rebounding from the previous session's drop as recent declines have pushed prices lower than any forecast slowdown in demand.
Prices tumbled on Monday as fears persisted that euro zone countries will struggle to contain the region's debt crisis, with Moody's warning about France's rating outlook and Spanish yields rising a day after the country voted in a new government.

Brazil sugarcane crop on way to another letdown
SAO PAULO, Nov 21 (Reuters) - Output from the world's biggest sugar producer Brazil is likely to disappoint again next season, putting a potential floor under global sugar prices that have been falling over the past few months.
Even with investments in cane replanting and good weather in the coming months, Brazil's main center-south sugarcane region will not recover to its high-water mark of 2010/11 when mills crushed a record 557 million tonnes.

Brazil soy planting surges under favorable weather
SAO PAULO, Nov 21 (Reuters) - The planting of Brazil's soybean crop is ahead of schedule after surging over the past week, as producers race to get their crops sown as early as possible this year, grain analysts Celeres said on Monday.
Ample rains since late September in most soy producing regions have allowed producers to sow an early crop this year, unlike last season when spring rains were delayed by a month and a half due to the effects of La Nina.

Weekend rain to help Argentine soy, corn -meteorlogist
BUENOS AIRES, Nov 21 (Reuters) - Weekend rain in Argentina's main crop belt further improved conditions for soy, corn and wheat, setting the stage for healthy harvests, a meteorologist said on Monday.
Farmers in grain-exporting powerhouse Argentina were concerned by dry weather in September, but precipitation over the last six weeks in top producing province Buenos Aires and surrounding areas improved the outlook.

Ukraine to boost spring grains area to cover losses
KIEV, Nov 21 (Reuters) - Ukraine plans to sow an additional 2.0 million hectares of spring grains and 300,000 hectares of soybean in 2012 in a bid to compensate future losses in winter grain crops already affected by poor weather, Ukraine's Farm Ministry said on Monday.
"Taking into account an expected area of the reseeding, the ministry and regions had worked out the structure of the 2012 spring sowing, according to which we plan to sow additional 500,000 hectares of maize, 200,000 of spring wheat, 300,000 of soybean, 1.2 million of spring barley and 100,000 of other cereals," the ministry said in a statement.
 
Asian rubber producers to blacklist defaulters-Thai body
BANGKOK, Nov 21 (Reuters) - The world's top rubber producers are blacklisting buyers which have failed to honour their contracts after recent defaults caused panic selling in the physical market, the Thai Rubber Association said on Monday.
Thailand, Indonesia and Malaysia backed off from a plan to bolster prices at their weekend meeting in Bangkok, but pledged to prevent defaults from recurring after buyers, mostly from China, wanted to renegotiate contracts as prices plunged to around $3 per kg.

Brent oil steady near $107 on new Iran sanctions
SINGAPORE, Nov 22 (Reuters) - Brent crude held near $107 a barrel as fresh sanctions, and the prospect of military action, against Iran offset persistent worries about the health of Western economies and fuel demand.
"Iran adds a risk premium to crude," said Jonathan Barratt, managing director of Commodity Broking Services.

Copper bounces after 3-day fall on China demand view
SINGAPORE, Nov 22 (Reuters) - London copper futures jumped 1.5 percent as hopes that demand from top consumer China will remain strong helped the metal rebound from one-month lows in the previous session.
"Even if there's doom and gloom out there, there are selective stories which will create a bit of a bullish tone to the metal, and it seems the market has now repositioned itself ahead of demand in China," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.

China aluminium output falls in Oct - IAI
LONDON, Nov 21 (Reuters) - Daily average primary aluminium output in China fell to 48,100 tonnes in October, down from 52,700 tonnes in September, provisional figures from the International Aluminium Institute (IAI) showed on Monday.  
Total primary aluminium production in October (31 days) also fell, to 1.491 million tonnes from 1.581 million tonnes in September.

China Oct refined copper imports rise 7.2 pct on month
HONG KONG, Nov 21 (Reuters) - China's imports of refined copper rose 7.2 percent in October on the month to hit an 18-month high, fuelled by steady demand.
Arrivals of refined copper in the world's top copper consumer increased to 295,341 tonnes in October, their highest  since April 2010 and a gain of 73.8 percent from October 2010, data from the General Administration of Customs showed on Monday.

Global, Chinese steel output down to 10-month low
LONDON, Nov 21 (Reuters) - Global and Chinese crude steel production slowed in October to their lowest levels in 10 months, as a gloomier economic outlook forced many steelmakers to cut production to tackle weakening demand and falling steel prices, data showed on Monday.
Global daily steel production slowed to less than 4 million tonnes in October and daily production in China, the largest producer and consumer of steel, fell to less than 1.8 million tonnes, in both cases the lowest level since December last year, according to a Reuters calculation based on data released by the World Steel Association.

Italy 10-month steel output up 11.5 pct-industry
MILAN, Nov 21 (Reuters) - Steel output in Italy, the European Union's second-biggest producer after Germany, rose 11.5 percent year-on-year to 24.036 million tonnes in the first 10 months of 2011, industry body Federacciai said on Monday.
In October alone, Italy's steel output rose 9.6 percent to 2.700 million tonnes, according to data published on Federacciai's website.

Gold rebounds; Europe, US debt worry weigh
SINGAPORE, Nov 22 (Reuters) - Spot gold gained half a percent, as a decline of more than 2 percent attracted some buyers, while worries about debt crises in both the United States and the euro zone are expected to keep sentiment fragile.
"Today there has been some buying interest on the physical market, although overall trading is thin," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

METALS-Copper bounces after 3-day fall on China demand view
SINGAPORE, Nov 22 (Reuters) - London copper futures jumped 1.5 percent as hopes that demand from top consumer China will remain strong helped the metal rebound from one-month lows in the previous session.
"Even if there's doom and gloom out there, there are selective stories which will create a bit of a bullish tone to the metal, and it seems the market has now repositioned itself ahead of demand in China," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.

PRECIOUS-Gold rebounds; Europe, US debt worry weigh
SINGAPORE, Nov 22 (Reuters) - Spot gold gained half a percent, as a decline of more than 2 percent attracted some buyers, while worries about debt crises in both the United States and the euro zone are expected to keep sentiment fragile.
"Today there has been some buying interest on the physical market, although overall trading is thin," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

20111122 1212 Global Market & Commodities Related News.

Asia Can Withstand Europe Shocks: World Bank (Bloomberg)
Most Asian nations have room to use fiscal stimulus to protect their economies from an escalation in the European debt crisis that may have “substantial” spillovers in the region, the World Bank said. Developing East Asia, which excludes Japan, Hong Kong, Taiwan, South Korea, Singapore and India, will expand 7.8 percent in 2012 after growing 8.2 percent this year, the World Bank said in the semiannual East Asia and Pacific Economic Update report today. Asian policy makers have shifted their focus to shielding growth, rather than stemming inflation, as Europe’s debt woes and a struggling U.S. economy increase the risk of another global recession. Australia and Indonesia have cut interest rates this month, while the Philippines in October unveiled a fiscal stimulus package to spur the economy.

GLOBAL MARKETS-Asian shares fall on U.S., European debt fears
SINGAPORE, Nov 22 (Reuters) - Asian shares fell on Tuesday as fears about the ability of politicians on either side of the Atlantic to tackle huge debt burdens sapped investors' confidence in riskier assets.
"The S&P index has broken sharply lower and looks technically pretty dire, despite more OK data as the Chicago Fed index bounced slightly and the overhang of unsold homes dipped back to a lower but still high 8 months," said Kit Juckes, head of foreign exchange research at Societe General.

COMMODITIES-Debt fears kick metals and grains lower
NEW YORK, Nov 21 (Reuters) - Gold dropped more than 2 percent while copper tumbled nearly 3 percent and silver sank 4 percent on Monday, as mounting fears about debt in Europe and the United States hit the commodity complex.
"Every time there is a sudden sell-off in equity markets, people have to raise money where they can, and gold is the most liquid asset," said Adrian Day, president of Adrian Day Asset Management, which manages $160 million in assets.

Oil falls on global growth concerns, debt fears
NEW YORK, Nov 21 (Reuters) - Oil prices fell on Monday in volatile trading on fears that persistent debt problems in Europe and the United States and governments' inability to tackle them will stunt global economic growth and curb demand for petroleum.
"Concerns about U.S. debt have added to risk aversion," said Eugen Weinberg, head of global commodities research at Commerzbank in Frankfurt.

Natgas ends up 2.5 pct, cooler forecasts lift
NEW YORK, Nov 21 (Reuters) - U.S. natural gas futures rose 2.5 percent on Monday, as traders blamed updated weather forecasts calling for cooler temperatures in the coming weeks after a long stretch of mild, autumn weather curbed recent heating loads.
"The main feature of the natural gas market today was the downgrading of the forward weather forecast by several private weather forecasters who are now projecting some cold temperatures in about week or so," said Energy Management Institute's Dominick Chirichella.

Euro Coal-Prices fall $1/T with oil, equities
LONDON, Nov 21 (Reuters) - Prompt physical coal prices dropped by around $1.00 a tonne on Monday in line with a slide in oil and equities as fears of out-of-control government debt in the U.S. and Europe hit financial markets.
"Nobody wants to do anything, everybody is delaying making a decision in case it's the wrong one," one major European trader said.

20111122 1051 Global Economic Related News.

US stocks slump
US stocks slumped, giving the S&P 500 Index its longest decline since September, amid concern the US government will be forced to submit to USD1.2trn in automatic spending cuts. The S&P 500 fell 1.9% to 1,192.98 pts while the Dow Jones Industrial Average declined 2.1% to 11,547.31 pts. The super committee, created to cut the deficit, said after the close of US exchanges that it failed to reach a deal. (Bloomberg)


U.S: Lawmakers on debt panel say they fail to agree on cuts. A special debt-reduction committee in the U.S. Congress failed to reach agreement, extending partisan gridlock into the 2012 election year and setting the stage for USD 1.2tr in automatic spending cuts. "After months of hard work and intense deliberations, we have come to the conclusion that it will not be possible to make any bipartisan agreement available to the public before the committee's deadline," panel co-chairmen Representative Jeb Hensarling of Texas and Senator Patty Murray of Washington said in an emailed statement. (Source: Bloomberg)

U.S: Ratings affirmed by S&P, Moody's after supercommittee fails. S&P, which stripped the U.S. of its top AAA grade on Aug. 5, said the supercommittee's inability to reach agreement didn't merit another downgrade because the inaction will trigger USD 1.2tr in automatic spending cuts. The deliberations were "not decisive," Moody's spokesman Eduardo Barker said in an email after the panel issued a statement. (Source: Bloomberg)

U.S: Sales of existing homes unexpectedly increase in October. Purchases increased 1.4% MoM to a 4.97 million annual rate, the National Association of Realtors said. The median house price dropped 4.7% YoY, and the number of properties for sale was the lowest for any October since 2005. (Source: Bloomberg)

E.U: ECB stepped up bond purchases last week as debt crisis worsened. The Frankfurt-based ECB said it settled EUR 7.99b (USD 10.8b) of bond purchases in the week through Nov. 18, up from EUR 4.48b the previous week. Some EUR 131m of acquired bonds matured. The central bank will take seven-day term deposits to absorb the EUR 194.5b of liquidity created since its bond program started on May 10 last year, a practice it employs to ensure the purchases don't fuel inflation. (Source: Bloomberg)

U.K: Home sellers cut asking prices by the most in a year this month as the escalation of the euro-area debt crisis deterred buyers and increased uncertainty about the outlook for the economy, Rightmove Plc said. Average asking prices in England and Wales fell 3.1% MoM from October to GBP 232,144 (USD367,650), the biggest monthly drop since November 2010. A separate British Retail Consortium study showed consumer visits to U.K. stores dropped in the quarter through October. (Source: Bloomberg)

China: Moody's say reforms of valued-added tax are "credit positive" for the nation. A pilot program in Shanghai starting Jan. 1 is a step toward easing burdens on the private sector and moving away from an "export-oriented, state-owned-enterprise growth model," Moody's said in an emailed report. (Source: Bloomberg)

Thailand: 3Q 2011 GDP came in at 3.5% YoY and 0.5% QoQ (2Q 2011: 2.7% YoY, 0.0% QoQ), but was far short of expectations (4.5% YoY, 1.5% QoQ). Our KimEng Thai Research expects 4Q 2011 GDP to contract by 2.8% YoY, giving a full-year growth of just 1.8% before picking up to 3.5% in 2012. Official forecast by the National Economic and Social Development Board (NESDB) for 2011 was slashed to 1.5% from 3.5%-4% previously, implying a 3.7% contraction in 4Q 2011, followed by 4.5%-5.5% expansion in 2012. Bank of Thailand may cut interest rate by as much as 50bps to 3% at its upcoming monetary policy meeting on 30 Nov. (Source: Bloomberg, Maybank IB, KimEng Thailand)    


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% 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 27 Oct meeting showed one board member favored adding JPY10trn (USD130bn) in asset purchases, and Chinese Vice Premier Wang Qishan said his nation must adopt more “forward looking” and flexible monetary policy. [Bloomberg]

New Zealand: First annual migration decline since 2001
More migrants left New Zealand than arrived for the seventh month in the past eight, after residents were uprooted by an earthquake in the South Island city of Christchurch. Permanent departures exceeded arrivals by 650 in October, Statistics New Zealand said in Wellington. In the year to 31 Oct, there were 103 net departures, the first time annual departures exceeded arrivals since Sept 2001. The decline in migration adds to signs that New Zealand’s economy isn’t able to match the job opportunities and wages of nations such as Australia, which attracted three-quarters of the citizens who left. [Bloomberg]

Sri Lanka: Plans to devalue Rupee and implement tax cuts to spur growth
Sri Lanka said it will devalue its rupee to boost exports as the government unveiled tax-cut plans for some industries to spur economic growth as the global recovery falters. The central bank will depreciate its rupee by 3% from today, Governor Ajith Nivard Cabraal said in a telephone interview in Colombo after President Mahinda Rajapaksa made the announcement in his budget speech yesterday. Rajapaksa also said he will raise salaries for civil servants and increase government spending in 2012. [Bloomberg]

20111122 1048 Malaysia Corporate Related News.

TSH: Aims for 30% revenue growth, announced ex-date for bonus issue. TSH Resources is aiming to grow average revenue by 30% on a compounded basis for every year in the next four years. The company is on a lookout to add oil palm plantation land of 40,000ha-50,000ha in East Kalimantan, Indonesia to expand its oil palm estates in 2012/2013. Separately, TSH has confirmed the ex-date of the bonus issue of up to 416,646,263 new ordinary share of RM0.50 each on the basis of one bonus share for every one existing ordinary share of RM0.50 each held in TSH to be on 2 December 2011. (Source: The Star, Bursa Malaysia)

MAHB: Penang airport may see further expansion. The Penang International Airport is likely to see further expansion if plans to relocate the MASkargo Complex Centre close to the airport is successful. MAHB is re-looking at an earlier plan to expand the existing passenger terminal to spill over to the cargo complex in Bayan Lepas to handle higher passenger traffic (Source: Business Times)

Bumi Armada: Plans up to RM2.5b in capex next year. Bumi Armada Bhd plans to allocate RM2.5b for capital expenditure in FY12 in a bid to increase its asset base in the markets where it is operating currently. Extra spending will be used to expand its operations in the 11 countries it has a presence and a bulk of the expenses will be used for building floating production storage and offloading (FPSO) vessels. (Source: The Edge Financial Daily)

RHB, OSK: May pay for OSK via stock. RHB Capital Bhd, Malaysia's fifth- biggest banking group, may issue stock to pay for OSK Holdings Bhds investment bank. RHB may issue new shares equivalent to as much as 10% of its existing equity to pay for the unit. That would value the transaction at as much as RM1.63b based on RHBs closing price last Friday. (Source: Business Times)

Petronas: Launches Malaysia's first mobile fuel dispenser. Petronas Dagangan, the domestic marketing arm of Petronas, has launched Malaysia's first mobile fuel dispenser called the Petronas Primax Mobile Fuel Dispenser. The dispenser which costs some RM400,000 is capable of fueling up some 20,000 litres of petrol. (Source: The Edge Financial Daily)

Eversendai: Bags RM132m job for Manjung power plant. Eversendai Corp Bhd's unit Shin Eversendai Engineering (M) Sdn Bhd (SEVM) has won a RM132m contract from Alstom Services Sdn Bhd to undertake the mechanical erection for the boiler and auxiliary equipment for the Manjung Unit#4 in Perak. There remain several other packages within this project that SEVM and Alstom are in negotiation currently. (Source: The Star, The Sun)


KLIA2 may cost more than RM2.5bn
Speculation is rife that the cost of KLIA2 has increased significantly from the initial estimates of between RM2bn and RM2.5bn, with speculation that cost has escalated to more than RM4bn. This may mean Malaysia Airports (MAHB) has to increase its charges, including airline parking and landing fees and airport taxes. While MAHB declined to comment on the cost of the project, it emphasized that even if there was an increase in expenditure in constructing the KLIA2, it would not affect the passengers or the airlines. It said that aeronautical charges are never based on the cost of building MAHB’s airports. (Financial Daily)

Nazifuddin resigns from Harvest
Mohd Nazifuddin Najib resigned as director of Harvest Court after less than a month on the board. However, both he and his business associate Datuk Raymond Chan intend to keep their respective stakes of 2.2% and 15.7% in the company. Nazifuddin said the speculation over Harvest’s stock was the reason for him to step down from the board of Harvest. He will, however, remain active in pursing the 1Green Enviro SB project and remain as executive chairman of Sagajuta (Sabah) SB, a property company based in Kota Kinabalu. (StarBiz)

Green light for San Miguel to buy Esso stake
Esso Malaysia has obtained the green light from the government to have its 175.5m ordinary shares, or 65% stake, sold by ExxonMobil International Holdings Inc to Philippine-based conglomerate San Miguel Corp. The letters of approval from the Ministry of International Trade and Industry and the MDTCC for the proposed acquisition have already been obtained. ExxonMobil first announced its intention to sell its 65% stake in Esso Malaysia and 100% in two other unlisted subsidiaries for a total price of USD610m to San Miguel in August. (StarBiz)

Bumi Armada eyes projects in Caspian Sea, Asian region
Bumi Armada is looking at securing two projects in the Caspian Sea and another in the Asian region involving a tie-in with Petronas for its transport and installation (T&I) services sector. Bumi Armada is also keen on obtaining at least two annual projects for its floating production storage and offloading sector. The company is looking to invest RM1.9bn to RM2.5bn in FY12, similar to FY11. (Malaysian Reserve)

20111122 1009 Global Market Related News.

Asian Stocks Fall After U.S. Deficit Talks Fail (Source: Bloomberg)
Asian stocks erased earlier loses after Standard & Poor’s and Moody’s Investors Service said they won’t lower credit ratings on the U.S. following a congressional committee’s failure to agree on deficit cuts. The MSCI Asia Pacific Index rose 0.1 percent to 112.51 as of 10:21 a.m. in Tokyo after falling as much as 0.7 percent.

S&P 500 Posts Worst Losing Streak in 2 Months (Source: Bloomberg)
U.S. stocks slumped, giving the Standard & Poor’s 500 Index its longest decline since September, amid concern the U.S. government will be forced to submit to $1.2 trillion in automatic spending cuts. All 10 industries in the benchmark measure declined as 468 out of 500 companies retreated. Bank of America Corp. tumbled 5 percent to pace losses in financial shares. Hewlett-Packard Co. (HPQ) and Caterpillar Inc. (CAT) dropped at least 2.9 percent. The Dow Jones Transportation Average slid 2.3 percent. Gilead Sciences Inc. (GILD) plunged 9.1 percent after agreeing to buy Pharmasset Inc. (VRUS) for about $11 billion in cash. Pharmasset soared 85 percent. The S&P 500 fell 1.9 percent to 1,192.98 at 4 p.m. New York time. The benchmark gauge for American equities has lost 5.2 percent in four days. The Dow Jones Industrial Average declined 248.85 points, or 2.1 percent, to 11,547.31 today. The supercommittee created to cut the deficit said after the close of U.S. exchanges that it failed to reach a deal.

European Stocks Tumble Amid U.S. Budget Concern; Banks Retreat (Source: Bloomberg)
European stocks dropped the most in three weeks amid signs U.S. lawmakers may fail to reach an agreement on budget cuts, raising the prospect the world’s largest economy could face another credit downgrade. KBC Groep NV (KBC) led banks lower as dollar funding costs and bond yields climbed. Mining and energy companies dropped with metal and crude oil prices on signs of slowing growth in Asia. Carrefour SA (CA) slipped 3.2 percent after the retailer’s largest shareholders were said to consider replacing its chairman and chief executive officer. The benchmark Stoxx Europe 600 Index sank 3.2 percent to 224.76 at the close, the gauge’s biggest retreat since Nov. 1. The Stoxx 600’s slump extended last week’s 3.7 percent selloff. Stocks tumbled around the world last week as the yields on Italian and Spanish bonds climbed, and the cost of insuring against losses on the nations’ debt rose.

Sales of Existing U.S. Homes Unexpectedly Increase: Economy (Source: Bloomberg)
Sales of previously owned homes in the U.S. unexpectedly rose in October, a sign falling prices may be attracting buyers.  Purchases increased 1.4 percent to a 4.97 million annual rate, the National Association of Realtors said today in Washington. The median forecast of 75 economists surveyed by Bloomberg News was for a 4.8 million rate. The median house price dropped 4.7 percent from a year earlier, and the number of properties for sale was the lowest for any October since 2005. Borrowing costs near a record low are helping homebuyers take advantage of housing that’s growing more affordable as prices drop. At the same time, the end of a temporary halt on foreclosures may push more properties onto the market, triggering further slides in value that may prevent the industry from recovering for years.

Supercommittee Fails to Identify Even Bogus Cuts: Caroline Baum (Source: Bloomberg)
It took a fictional jury of “12 Angry Men” 96 minutes to agree on a verdict of not guilty. It took “12 good people,” as supercommittee co-chairman Jeb Hensarling referred to them, three months and countless hours to produce ... nothing. Just to put things in perspective, the Joint Select Committee on Deficit Reduction was charged with finding a minimum of $1.2 trillion in savings over 10 years. These wouldn’t have been cuts in the normal sense. A salary cut means my paycheck is smaller each month. A deficit cut, in federal budget speak, isn’t a reduction in the deficit. The only thing being cut is the rate at which the deficit is growing. Had the supercommittee fulfilled its mission, the U.S. would face cumulative deficits of $3.5 trillion over the next 10 years, compared with $4.7 trillion without cuts, according to projections by the Congressional Budget Office.
U.S. Ratings Affirmed by S&P, Moody’s After Supercommittee Fails on Budget

U.S. Congress deadlocks over energy and jobs: John Kemp
-- John Kemp is a Reuters market analyst. The views expressed are his own --
NEW YORK, Nov 18 (Reuters) - The failure of the planned national cap-and-trade scheme to curb greenhouse emissions in 2009-2010 has left the United States without a coherent policy for addressing either the threat posed by climate change or problems of energy affordability and security.
Instead there is an incoherent muddle as the White House and Congress fail to integrate hyper-partisan demands from energy producers and groups concerned about carbon emissions, pollution and the environment.

U.S. Ratings Affirmed by S&P, Moody’s (Source: Bloomberg)
Standard & Poor’s and Moody’s Investors Service said they won’t lower ratings on the U.S. after the congressional committee charged with finding $1.5 trillion of deficit cuts failed to reach an agreement. S&P, which stripped the U.S. of its top AAA grade on Aug. 5, said yesterday that the supercommittee’s inability to reach agreement didn’t merit another downgrade because the inaction will trigger $1.2 trillion in automatic spending cuts. The deliberations were “not decisive,” Moody’s spokesman Eduardo Barker said in an e-mail after the panel issued a statement. Fitch Ratings reiterated that the talks failure would likely lead to a revision of the U.S. rating outlook to negative.
The August downgrade sparked the biggest quarterly rally in U.S. Treasuries since the end of 2008, while global equities lost $9.7 trillion in market value during that period. The lack of a deal raises the risk of slower growth and deprives President Barack Obama of a vehicle to extend a payroll tax cut and insurance benefits for unemployed Americans, which expire at the end of the year.

U.S. Debt Panel Fails to Agree on Cuts (Source: Bloomberg)
A special debt-reduction committee in the U.S. Congress failed to reach agreement, extending partisan gridlock into the 2012 election year and setting the stage for $1.2 trillion in automatic spending cuts. President Barack Obama blamed Republicans, saying in remarks at the White House they “refused to listen to the voices of reason and compromise.” The president said he would veto any move to avoid the automatic spending cuts that are supposed to start in 2013 as a result of panel’s failure. Committee co-chairmen Representative Jeb Hensarling of Texas, a Republican, and Senator Patty Murray of Washington, a Democrat, said in an e-mailed statement that “after months of hard work and intense deliberations, we have come to the conclusion today that it will not be possible to make any bipartisan agreement available to the public before the committee’s deadline.”

Treasuries Drop, Snapping Gain, as Auction Poised to Draw Record Low Yield (Source: Bloomberg)
Treasuries snapped a gain from yesterday as the U.S. prepared to sell $35 billion of five-year notes today, with the auction poised to draw a record low yield. Benchmark 10-year rates were little changed at 1.97 percent of 9:48 a.m. in Tokyo, according to Bloomberg Bond Trader prices. The 2 percent security maturing in November 2021 changed hands at 100 9/32. The five-year notes being auctioned today yielded 0.93 percent in pre-auction trading, versus 1.055 percent at the prior sale on Oct. 26. The record low auction yield was 1.015 percent on Sept. 28. Treasuries rallied yesterday as investors sought safety amid U.S. budget gridlock and a debt crisis in Europe.

Treasuries Rising Most Since 2008 as Budget Paralysis Seen (Source: Bloomberg)
With Congress at an impasse on how to reduce the U.S. budget deficit, the biggest rally in government bonds since 2008 shows no signs of letting up even as yields are about the lowest on record. Treasuries have returned 0.9 percent this month, 3.4 percent since the U.S. was downgraded to AA+ by Standard and Poor’s Aug. 5, and 8.9 percent this year, according to Bank of America Merrill Lynch index data. The cost of derivatives to protect against a U.S. default is about half that for AAA rated Germany or the U.K. as Europe’s debt crisis has spread from Greece, according to data provided by CMA.
After the downgrade, and with lawmakers said to have failed to reach agreement on cutting $1.2 trillion from the deficit ahead of a deadline, U.S. bonds have still been the best investment this year. Yields may stay low as the Federal Reserve holds down rates and political wrangling in the U.S. threatens the global recovery. Spending cuts triggered by lack of a budget plan would lop as much as 2 percentage points off growth in the first quarter of 2013, according to JPMorgan Chase & Co.

No Deficit Deal as Focus Turns to 2012 (Source: Bloomberg)
Lawmakers on a special debt- reduction committee are poised to announce they failed to reach agreement and dissolve congressional gridlock, kicking tax and spending issues into the 2012 election year. Treasuries rallied while riskier assets declined as the congressional supercommittee’s deadlock spurred demand for safer assets. Senator Jon Kyl of Arizona, a Republican on the 12-member panel, said on CNBC the Republican and Democratic committee co- chairmen, Representative Jeb Hensarling of Texas and Senator Patty Murray of Washington, would make a formal announcement “toward the end of the day.” They are expected to say the panel can’t agree on deficit reduction of at least $1.2 trillion, triggering across-the-board cuts of the same amount starting in 2013.
“The next election certainly will have a big bearing on the question of what’s the scope and size of the federal government, and do we want to try to tax our way out of this or grow our way out,” Kyl said. There will be efforts to “ameliorate” effects of the cuts over the next year, he said.

Yuan Halts Two-Day Decline After Wen Pledges Further Exchange-Rate Reform (Source: Bloomberg)
Yuan forwards fell by the most in more than a month on speculation capital outflows will take pressure off policy makers to speed up gains in the currency. The yuan also declined as concern U.S. lawmakers won’t be able to reach agreement on cutting the budget deficit reduced demand for emerging-market assets. Yuan holdings at Chinese banks fell for the first time since December 2007, dropping a net 24.9 billion yuan ($3.9 billion) in October, according to a statement on the People’s Bank of China website today. Economists watch the numbers for signs of inflows or outflows of so-called hot money. “Given the external environment, China will slow down the yuan’s appreciation,” said Rees Kam, a Hong Kong-based senior strategist at SJS Markets Ltd. “The likely collapse of an agreement among the U.S. congressional budget deficit panel would hurt risk sentiment.”

Japanese Exports Decline as China Sees Prolonged Global Slowdown: Economy (Source: 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.”

Thailand Says GDP May Shrink 3.7% on Floods, Adding to Case for Rate Cut (Source: Bloomberg)
Thailand’s economy may shrink 3.7 percent this quarter following the worst flooding in almost 70 years, the government said, adding to the case for an interest- rate cut as early as next week. Gross domestic product rose 3.5 percent in the three months through September from a year earlier, after climbing a revised 2.7 percent in the previous quarter, the National Economic and Social Development Board said in Bangkok today. It also forecast the contraction and lowered its estimate for 2011 growth to 1.5 percent, from as much as 4 percent earlier. The floods have killed more than 600 people, swamped thousands of factories and disrupted supplies for companies from Apple Inc. to Toyota Motor Corp. The damage may reach 300 billion baht ($9.7 billion), the board said, and the Bank of Thailand has signaled room to cut rates to prop up growth as well as counter threats from Europe’s sovereign-debt crisis.

20111122 1008 Global Commodities Related News.

Commodities Decline for Third Session on U.S. Budget Impasse, Europe Debt (Source: Bloomberg)
Commodities sank a third day on speculation that U.S. lawmakers won’t agree on a plan to reduce the deficit and amid concern Europe’s debt crisis will send the region into recession. The Standard & Poor’s GSCI Index of 24 raw materials fell 1.4 percent. Cotton slumped to a 14-month low, cocoa slid to the lowest in 30 months and silver also declined. A 12-member bipartisan debt-reduction committee will probably announce today that it can’t reach agreement on deficit reductions of at least $1.2 trillion. Germany’s Finance Ministry said the country’s expansion has gotten “noticeably slower.” “The euro-zone debt crisis and news that the U.S. Congress has failed to agree to measures to reduce the budget deficit depressed commodities,” Greg Grow, the director of agribusiness at Archer Financial Services Inc. in Chicago, said in a telephone interview.

Tyson Foods Sees Flat 2012 Demand As Grain Rises
The head of Tyson Foods Inc. said that grain prices may rise again next year, leaving a flat demand outlook for the largest U.S. meatpacker as it continues efforts to pass price rises on to consumers and food-service buyers. Higher feed costs have driven a sharp increase in beef prices while even the oversupplied chicken sector has seen some recovery as producers cut back supplies after what Tyson President and Chief Executive Donnie Smith called two of the toughest summer months the industry has ever experienced. Volatile grain markets left Tyson nursing losses on hedging contracts while chicken demand was poor over the key July 4 holiday weekend, leaving the company with a 54% decline in fiscal fourth-quarter profit. Smith said Tyson's chicken segment returned to profitability in October, and forecast U.S. industry supplies would drop 4% in its 2012 fiscal year, with beef production down 1% to 2% over the same period.
The executive said on a post-earnings call that he expected U.S. gross domestic product to rise by just 1.5% next year, leading him to keep a close eye on retail demand as the company continued efforts to pass on higher feed costs. Smith also said Tyson was pushing its international expansion "as hard as we can" to offset weakness in domestic markets which he saw flat for both retail and food-service segments. Tyson forecast sales would rise above $34 billion next year from $28.4 billion in fiscal 2011, and Smith said on the call that the company would pursue its "conservative" hedging strategy despite wracking up mark-to-market losses on grain futures contracts. For the quarter ended Oct. 1, Tyson reported a profit of $97 million compared with $213 million a year earlier. Per-share earnings fell to 26 cents from 57 cents, undershooting analysts' expectations.
Earnings in the beef segment--the largest top-line contributor--were down 2.5% as revenue rose 16% on a 19% jump in average prices, but volume fell 2.3%. The chicken business swung to a loss despite 9.2% revenue growth, and volume rose 3.7% with 5.3% higher prices.

Corn
US corn futures ended lower, extending the market's recent downtrend as global economic fears prompt widespread cross-asset selling pressure caused by bearish economic and political factors. Corn prices were also anchored by an overall sluggish export sales pace. Futures fall to a 7-week low, with December corn settling below $6/bushel at $5.97 3/4 while March fell 13c to $6.05.

Wheat
US wheat futures closed lower, succumbing to the broader-based selling that filtered across asset classes. Global economic fears associated by European debt and the failure of the US supercommittee to agree on a plan to reduce deficit levels encouraged traders to reduce risk exposure. Poor export demand added to the bearish theme. However, hard-red winter wheat futures in Kansas City did pare losses, briefly trading higher on worries about dryness issues for crops in the southern Plains. CBOT March wheat ended down 6 3/4c at $5.91 1/2 a bushel as KCBT March dropped 1 1/4c to $6.78 and MGEX December dropped 12 3/4c to $8.62 1/2.

Rice
US rice futures fell, falling to 4 1/2 month lows. General weakness across broader asset classes encouraged traders to reduce risk exposure in unison with the declines seen amid other grain futures, analysts say. CBOT Jan Rice ended down 22 1/2c, or 1.5%, to $14.45 1/2/hundredweight.

Corn, wheat slip as euro zone crisis weighs on market
KUALA LUMPUR, Nov 21 (Reuters) - U.S. corn declined for a fourth day because of euro zone debt worries and increased supply as the United States harvested its crop, and other food grains also fell as the global uncertainty kept investors away from riskier assets.
"The European debt crisis means investors are putting money into lower-risk assets, which are not commodities," said Malcolm Bartholomaeus, a senior grains analyst at consultancy Profarmer Grain in Melbourne.

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.

Rain to slow final corn harvest in Ohio
CHICAGO, Nov 18 (Reuters) - Showers early next week will slow the final harvest of corn in Ohio and crop-friendly rains are expected next week in the Plains hard red winter wheat belt, an agricultural meteorologist said on Friday.
"Showers in the first half of next week will keep late harvest slow in Ohio and the rains could cause flooding in the northern Delta," said Joel Widenor, meteorologist for Commodity Weather Group.

Weather favours Russia crop planting, hard on Ukraine
KIEV, Nov 18 (Reuters) - Favourable weather is laying the foundation for Russia to dominate the regional grain export market again next season while a disastrous autumn in Ukraine is leaving farmers with tough choices over how make up for damaged winter sowings.
Russia, which plans to harvest around 100 million tonnes of grain this year, reported perfect weather conditions for its winter grains, looking forward to a second record export season in a row in the 2012/13 season.

Agribusiness Fund Goes Farther Afield For Harvest
As the global population continues to grow and investors' interest in agriculture expands, Adam Patti says it is good to stay small. His agriculture ETF, the IQ Global Agribusiness Small Cap fund, bypasses the largest, household names in the sector, such as Archer Daniels Midland, Monsanto Co., and Mosaic Co. Instead, the fund's portfolio is filled with names that Patti admits most investors have never heard of. In doing so, the fund offers a different path to diversify and invest in "hidden gems," said Patti, founder and CEO of Index IQ. Investors aren't following them, analysts aren't covering them. "These are the companies those in the large-cap space are looking to acquire," he said. But Patti isn't just awaiting a one-time pop, and said small-cap funds tend to outperform large caps.
The fund started in March, arriving in the midst of a global boom in agriculture, fueled by rising populations and income levels in emerging markets such as China, where people are eating more meat, and by substandard crops and biofuel demand. That has sent prices for crops and livestock soaring, boosting the profile for companies in fertilizer, farm equipment, seed and meat production. But as investors flock to large agribusiness companies and funds such as the Market Vectors Agribusiness ETF (MOO) -- the dominant agriculture-related mutual fund -- some of the benefits of diversification are lost, Patti said. "When people want to play the theme, they pour billions of dollars into ADM," he said. Meanwhile, smaller companies can be overlooked and undervalued, he said.
The fund corresponds to the IQ Global Agribusiness Small Cap Index, which was created in February. Patti said he doesn't expect investors to invest in his fund as opposed to Market Vectors Agribusiness, but to invest in both as part of a well-rounded approach to the agriculture sector. Compared to Market Vectors Agribusiness, the "800-pound gorilla," CROP is just a "spec on the radar," said Morningstar analyst Abraham Bailin said. It has $37 million in assets, compared to $5.7 billion for MOO. But Bailin said investors could see a good chance to diversify by investing in the IQ Global Agribusiness Small Cap fund and its roster of smaller companies. He said the largest companies in agriculture are often involved in chemicals and more exposed to energy prices, making them less of a pure play.
While the fund has outperformed Market Vectors Agribusiness since its inception, "neither one of these are yield plays," Patti said. The nascent fund has posted a three-month return of 0.22%, versus negative 4.5% for the world stock category, according to Morningstar data. Market Vectors Agribusiness has a three-month return of negative 0.15%, but both MOO and CROP have lagged the Standard and Poors' three-month return of 7.2%. Analysts have touted agriculture investments as a hedge against inflation, and as a way to invest in a global population expected to balloon to 9 billion by mid-century. "The agriculture story, regardless of how you play it, is the story in the next 10 years," Patti said. About 20% of CROP's holdings are in emerging markets in Asia, which is central to the growth story in agriculture. Another 23% are in Japan, and 32% of the holdings are in North America.
While many of the holdings would be considered obscure to the typical North American investor, its top holdings -- and top performers -- are relatively well-known. The largest holding is Tractor Supply Corp. (TSCO), a farm supply company that is broadly exposed to agriculture and has had a 49.9% return year-to-date, according to Morningstar data. Another large holding, Smithfield Foods (SFD), has surged thanks to a booming export market for pork, particularly to China. It has posted returns of 12.6% year-to-date. Many of the fund's laggards have been foreign companies, such as China Modern Dairy Holdings Ltd., which comprises 1.6% of the portfolio and has lost 25.4% year-to-date, according to Morningstar data.

Asia Rice Prices May Rise Due To Tight Supply
Asian rice prices will likely rise this month as supply continues being squeezed in Thailand, the world's largest exporter, though sales by India and Pakistan will cap gains, trading executives said. "Strain is beginning to show in the market as the government steps up purchases at the guaranteed price," a Singapore-based exporter said. Keeping a pre-election promise, the Thai government is buying unmilled rice, or paddy from growers at THB15,000 a metric ton, while the market price is THB10,000 a ton or lower. Thai rice prices have increased by around $20/ton so far this month because the government's price has now become a benchmark, said Chookiat Ophaswongse, Honorary President, Thai Rice Exporters Association. Thai 5% broken white rice is now being offered around $615/ton, free-on-board and 25% broken around $580/ton. Vietnamese rice grades are mostly between $500-$550/ton, FOB. However there aren't many buyers at current price levels.
Due to the floods and high prices, hardly any fresh sales are taking place, said Christophe Cousin, managing director of Prasert & Sons, a Thailand-based rice brokerage. Thai rice exports are likely to fall to 500,000 tons or lower this month compared with 628,000 tons in October and an average 1.0 million tons each month during the first half of 2011. Some of this shortfall in Thai supply is being met by sales from India and Pakistan, where export cargoes are cheaper by as much as $200/ton, on an FOB basis. Last week, Indonesia, the world's largest rice importer, purchased 250,000 tons from private Indian companies at $483/ton, basis cost and freight. This marks a paradigm shift in Indonesia's rice import strategy and also shows pragmatism, because Thai and Vietnam rice is costlier, a Singapore-based exporter said. If the quality is found acceptable, it may open the door for Indian rice in Jakarta permanently, another trader said.
India has already contracted sales of more than 1.0 million tons ordinary, or non-Basmati rice since allowing shipments in September. Sales from the India are definitely a boon for buyers in Asia and Africa because its absence could have made rice even costlier, a trader in Bangkok said. However, analysts point out that India has limited infrastructure and it is difficult for monthly exports to exceed 500,000 tons. India's 5% and 25% broken white rice is being offered around $440/ton and $385/ton, FOB. Prices have already bottomed out and a further downward correction is unlikely.

ICE cocoa sets 2-1/2 year low, sugar rebounds
LONDON, Nov 21 (Reuters) - ICE cocoa futures dipped to a 2-1/2 year low in early trade on Monday as the deepening economic crisis combined with bearish market fundamentals to drive prices lower.
Arabica coffee futures also eased while raw sugar rebounded from the prior session's five-month low.

India again puts off meeting on sugar export to Tuesday
NEW DELHI, Nov 21 (Reuters) - India has again put off to Tuesday a meeting to consider allowing a first tranche of sugar exports, government sources said, sending domestic prices down as traders worried ministers could not agree on the quantity for overseas sales.
Earlier, government sources had said a panel of ministers, empowered to permit exports, was scheduled to meet at 3.45 pm (1015 GMT) on Monday.  

Brazil sugar output seen up in 2012/13-Kingsman
SAO PAULO, Nov 20 (Reuters) - Sugar output in centre-south Brazil is expected to rise to 32.5 million tonnes in 2012/13, some 2 million tonnes more than in 2011/12, Jonathan Kingsman, managing director of consultancy Kingsman SA, said on Sunday.
He told Reuters that he expected cane output in centre-south Brazil, the main growing region of the world's No. 1 sugar producer, to stand at 515 million tonnes in 2012/13.

China could import sugar from India -ISO
NEW DELHI, Nov 21 (Reuters) - China, set to resume sugar imports to shore up depleted stocks, could buy the sweetener from India, which is soon likely to permit this year's first tranche of overseas sales, the chief of the International Sugar Organization (ISO) said.
"It makes sense for both India and China to tie up some trade deals," ISO Executive Director Peter Baron told Reuters in an interview.

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.

Brazil Sugar Week to focus on competitiveness
SAO PAULO, Nov 20 (Reuters) - Brazil's rising costs of sugar production and the challenge of how to help the domestic ethanol industry meet strong biofuel demand will be key themes of Brazil Sugar Week starting on Monday.
The events this week will bring together several hundred traders, brokers, fund managers, analysts and industry leaders from around the world for conferences and seminars on sugar and ethanol culminating in an industry dinner on Thursday.

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.

Indonesia rubber exports seen falling in Q4-assoc
JAKARTA, Nov 18 (Reuters) - Indonesia's natural rubber exports in the fourth quarter are seen dropping to 500,000 tonnes, from more than 600,000 tonnes per quarter so far this year, on weaker demand from key consumers such as China, an industry official said on Friday.
Worries about slowing demand could lead growers in the world's second-biggest rubber producer to cut exports if prices keep falling, the country's rubber association said, ahead of a meeting at the end of this week by top producers to discuss the market.

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.  
Europe remains flush with coal and unless the weather turns sharply colder, utilities will not need much more spot material this winter.  
"Yesterday and the day before there was some activity and traders today looked happy to sit the week out," one European dealer said. "A lot of people will be happy to sit the rest of the year out seeing as we are already in the middle of November."

US coal consumption fell 1 pct last week - Genscape
Nov 18 (Reuters) - U.S. coal consumption fell 1 percent last week and was down 8 percent from the same week a year ago, according to power industry data monitor Genscape.
Coal use swings up and down seasonally and varies from week to week and region to region, depending on electricity demand to run air-conditioners or power heaters.

Crude falls on fears U.S. deficit talks may fail
KUALA LUMPUR, Nov 21 (Reuters) - U.S. crude fell more than $1 and Brent crude declined on concerns that U.S. lawmakers will fail to agree on plans to reduce the nation's deficit.
"This might give Standard & Poor's an opportunity to cut ratings further," said Alvin Liew, a senior economist at UOB Bank Ltd. in Singapore.

Pakistan Oct fuel oil imports at 6-mth low
SINGAPORE, Nov 21 (Reuters) - Pakistan has imported less than 400,000 tonnes of fuel oil for October, its lowest volume in six months, as transport problems due to heavy flooding hit demand, official data showed on Monday.
The country's main buyer, Pakistan State Oil , also bought the lowest volumes, at 780,000 tonnes, for its usual three-month cycle, just about a month ago.

Japan Oct LNG import volume up 17.9 pct
TOKYO, Nov 21 (Reuters) - Japan's liquefied natural gas imports climbed by more than 10 percent from a year earlier for the sixth straight month in October, Ministry of Finance data showed on Monday, as gas-fired power generation continued to surge due to the Fukushima nuclear crisis.
Japan, the world's biggest LNG buyer, last month imported 17.9 percent more LNG than a year earlier as heightened public concerns about nuclear safety have kept any reactor taken offline for routine maintenance from restarting.

Oil Trades Near One-Week Low on European Crisis Concern, U.S. Stockpiles (Source: Bloomberg)
Oil traded near the lowest price in more than a week in New York as investors speculated that fuel demand may falter as economic growth in Europe stalls and supplies rise in the U.S. Futures were little changed after dropping for a third day yesterday. Growth in Germany, Europe’s largest economy, may slow next year, the Bundesbank said. A U.S. Energy Department report tomorrow may show oil and fuel supplies increased last week, according to a Bloomberg News survey. Saudi Arabian Oil Co. Chief Executive Officer Khalid Al-Falih said the world economy is at risk of a double-dip recession. “We think consumption in the U.S. is still very subdued,” said David Lennox, a resource analyst at Fat Prophets in Sydney, who previously forecast oil would trade from $85 to $95 a barrel. “Any economic slowdown in Europe impacts on crude demand. We see $80 being the floor.”
Crude oil for January delivery was at $96.83 a barrel, down 9 cents, in electronic trading on the New York Mercantile at 11:52 a.m. Sydney time. The contract slipped 75 cents yesterday, or 0.8 percent, to $96.92, the lowest settlement since Nov. 9. Prices are 19 percent higher than a year ago.

Iron Ore-Spot prices may retreat after rally, China rebar falls
SINGAPORE, Nov 21 (Reuters) - Iron ore may fall this week as the market takes a breather after a rally seen to have taken place too swiftly, with sluggish steel demand in top consumer China likely to curb buying of the raw material.
Iron ore with 62 percent iron content eased 0.1 percent to $147.40 a tonne on Friday, according to the Steel Index, ending a 14-day rally that was the commodity's longest winning streak.

10 daily steel output lowest since Nov 2010
BEIJING, Nov 18 (Reuters) - Daily crude steel output in China stood at 1.664 million tonnes in the first 10 days of November, its lowest since November 2010, latest data from the China Iron and Steel Association showed on Friday.
Since October, steel mills across the country have scheduled overhauls in order to shield themselves from falling prices and slowing demand.

China imported iron ore stocks at new high in wk to Nov 18
BEIJING, Nov 18 (Reuters) - Inventories of imported iron ore at major Chinese ports hit a record 98.09 million tonnes this week, up 1.9 percent from last week, figures from industry consultancy Mysteel showed on Friday.
Iron ore prices have rallied by about $30 since reaching a 22-month low of $117 per tonne in late October, with Chinese steel mills replenishing stocks for the winter.

Baltic index falls, fleet growth adding pressure
LONDON, Nov 18 (Reuhters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, turned negative on Friday as weaker sentiment and a build up of available vessels weighed on the market.  
Brokers expect the shipping sector to see more turmoil in the coming months as a supply glut and growing economic gloom would keep earnings under pressure.

20111122 1007 Soy Oil & Palm Oil Related News.

Soybeans
US soybean futures fell to 13-month lows as the market was caught in the tailwinds of a broad-based risk-off trading environment. Fear of a global economic slowdown amid worries about European sovereign debt and the failure of the US supercommittee to reach agreement on a plan to help reduce the federal deficit encouraged traders to reduce risk exposure. Technical selling accelerated the declines, with selling gathering momentum after prices dipped below last week's lows. CBOT January soybeans end down 2 1/4c at $11.48/bushel.

Soybean Meal/Oil
Soy product futures dropped in unison with soybeans, falling on global economic jitters. Broader-based losses across asset classes spurred sellers, as traders worry about slowed economic growth, analysts say. CBOT Dec soymeal dropped $8.80 to $289.60/short ton, and Dec soyoil ended down 0.99c at 49.89 cents/pound.

Palm drops from 5-month top on gloomy global outlook
KUALA LUMPUR, Nov 21 (Reuters) - Malaysian palm oil dropped  from a five-month high hit last week on concerns buying was overdone, while the euro zone debt crisis and an apparent failure by the U.S. politicians to agree on a deficit reduction plan also hurt sentiment.
"The market is divided between potentially bullish fundamentals and the overwhelming global economic scenario. But there is some profit-taking today as the market has been overdone," said a trader with a foreign commodities brokerage.

China state soy imports anger commercial buyers -paper
BEIJING, Nov 21 (Reuters) - Chinese government purchases of soybean for state reserves, which have pushed up Chicago Board of Trade (CBOT) prices , have angered some commercial buyers in the world's largest soy importer, according to a media report.
Sinograin, which manages state reserves, has since October purchased twice from United States, buying about 1.2 million tonnes. Its latest purchases pushed up CBOT prices 2 percent on November 16.

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.

20111122 1007 Soy Oil & Palm Oil Related News.

Soybeans
US soybean futures fell to 13-month lows as the market was caught in the tailwinds of a broad-based risk-off trading environment. Fear of a global economic slowdown amid worries about European sovereign debt and the failure of the US supercommittee to reach agreement on a plan to help reduce the federal deficit encouraged traders to reduce risk exposure. Technical selling accelerated the declines, with selling gathering momentum after prices dipped below last week's lows. CBOT January soybeans end down 2 1/4c at $11.48/bushel.

Soybean Meal/Oil
Soy product futures dropped in unison with soybeans, falling on global economic jitters. Broader-based losses across asset classes spurred sellers, as traders worry about slowed economic growth, analysts say. CBOT Dec soymeal dropped $8.80 to $289.60/short ton, and Dec soyoil ended down 0.99c at 49.89 cents/pound.

Palm drops from 5-month top on gloomy global outlook
KUALA LUMPUR, Nov 21 (Reuters) - Malaysian palm oil dropped  from a five-month high hit last week on concerns buying was overdone, while the euro zone debt crisis and an apparent failure by the U.S. politicians to agree on a deficit reduction plan also hurt sentiment.
"The market is divided between potentially bullish fundamentals and the overwhelming global economic scenario. But there is some profit-taking today as the market has been overdone," said a trader with a foreign commodities brokerage.

China state soy imports anger commercial buyers -paper
BEIJING, Nov 21 (Reuters) - Chinese government purchases of soybean for state reserves, which have pushed up Chicago Board of Trade (CBOT) prices , have angered some commercial buyers in the world's largest soy importer, according to a media report.
Sinograin, which manages state reserves, has since October purchased twice from United States, buying about 1.2 million tonnes. Its latest purchases pushed up CBOT prices 2 percent on November 16.

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.