Thursday, November 24, 2011

20111124 1824 FCPO EOD Daily Chart Study.

FCPO closed : 3108, changed : -53 points, volume : higher.
Bollinger band reading : pullback correction upside biased.
MACD Histrogram : weakening, buyer reducing position.
Support : 3100, 3070, 3050, 3020 level.
Resistance : 3150, 3200, 3250, 3270 level.
Comment :
FCPO closed recorded huge loss with better volume transacted while overnight soy oil closed recorded substantial loss and closed for Thanks giving holiday while crude oil price rebounding higher.
Massive sell down on soy oil price pressured FCPO price to trade lower and buyer decided to reduce position limiting risk exposure. Beware of choppy market ahead of tomorrow CPO export data.
Daily chart formed the 4th down doji bar candle closed little above middle Bollinger band after market opened and traded lower and moved side way range bound toward the end to closed off the low of the day.
FCPO remained trading in a pullback correction upside biased market development testing support and resistance with MACD indicator having little negative crossed down.
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.

20111124 1744 FKLI EOD Daily Chart Study.

FKLI closed : 1448.5, changed : +30 points, volume : higher.
Bollinger band reading : pullback correction little downside biased.
MACD Histrogram : turned upward, seller lock in profit.
Support : 1445, 1440, 1435, 1425 level.
Resistance : 1458, 1470, 1480, 1491 level.
Comment :
FKLI closed recorded massive gain with improved volume changed hand doing 0.5 point premium compare to cash market that also ended higher. Overnight U.S. markets ended recorded substantial loss again and today Asia markets closed mostly higher while European markets currently trading higher.
Most regional markets having technical rebound after recent falls. News wise, S&P rating said that Japan may be closed to a downgrade, German reported private consumption expanded 0.8 percent from the second quarter and gross domestic product advanced 0.5 percent from the previous quarter.
Daily chart formed an wide range up bar candle closed nearer to middle Bollinger band level after market opened and trade little lower and swing upwards all the way to closed near the high of the day.
Market still trading in pullback correction phase within a little downside biased development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

20111124 1742 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.

20111124 1616 Global MArket & Commodities Related News.

Japan ‘May Be’ Close to a Downgrade: S&P (Bloomberg)
Standard & Poor’s said Japanese Prime Minister Yoshihiko Noda’s administration hasn’t made progress in tackling the public debt burden, an indication it may be preparing to lower the nation’s sovereign grade. “Japan’s finances are getting worse and worse every day, every second,” Takahira Ogawa, director of sovereign ratings at S&P in Singapore, said in an interview. Asked if that means he’s closer to cutting Japan, he said it “may be right in saying that we’re closer to a downgrade. But the deterioration has been gradual so far, and it’s not like we’re going to move today.” A reduction in S&P’s AA- rating would be a setback for Noda, who took office in September and has pledged to both steady Japan’s finances and implement reconstruction from the nation’s record earthquake in March. It’s unrealistic for Japan to think it can escape the debt woes that have engulfed nations overseas unless it can control its finances, according to Ogawa.

German Business Confidence May Fall to Low (Bloomberg)
German business confidence probably fell to a 20-month low in November as the euro area’s worsening debt crisis threatens to tip the economy into recession. The Ifo institute’s business climate index, based on a survey of 7,000 executives, will drop to 105.2 from 106.4 in October, the median forecast of 40 economists in a Bloomberg News survey shows. That would be the lowest since March 2010. The institute releases the report at 10 a.m. in Munich today. Growth in Europe’s largest economy may slow to a near standstill next year as the worsening turmoil curbs demand in the 17-nation currency bloc, Germany’s biggest export market, the Bundesbank said Nov. 21. The crisis, which is heading for its third year, has prompted companies such as Deutsche Lufthansa AG (LHA) to scale back capacity to counter an anticipated slowdown.


German bond sale shakes euro, stocks subdued
SINGAPORE, Nov 24 (Reuters) - The euro fell to a six-week low against the yen and Asian stocks were subdued after an unsuccessful German bond sale raised alarm that Europe's ever-worsening sovereign debt crisis is starting to affect even the continent's economic powerhouse.
"We have been saying for a while that Germany was effectively the only sovereign in the euro zone, all the others were credits," said Russell Jones, head of global rates strategy at Westpac Bank in Australia, in a note.

FOREX-Euro spooked as German auction rings alarm bells
TOKYO, Nov 24 (Reuters) - The euro stayed near seven-week lows against the dollar on Thursday, having suffered a steep fall after a "disastrous" German bond sale fuelled fears the region's debt crisis was beginning to threaten even Europe's biggest economy.
"If Germany has to pay higher costs for its borrowing, it's obvious it cannot help the entire euro zone. If German bond yields keep rising, that could even be a trigger for break-up of the euro," said Makoto Noji, senior strategist at SMBC Nikko Securities.

China flash PMI raises risks for commodities: Clyde Russell
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
SINGAPORE, Nov 23 (Reuters) - At first glance the sharp drop in the HSBC flash manufacturing index for China looks dire as it seems to threaten the last source of sustained demand growth for commodities.
But before leaping to the conclusion that China's economy is heading for the same doldrums stifling Europe and the United States, it's best to look at the flash Purchasing Managers' Index in context.

Soybean prices may get a boost from spec shorts: 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 23 (Reuters) - Large speculators turned net short in the soybean market last week for the first time since July of 2010, and in so doing bucked a years-long trend by sharply increasing short positions and shedding long exposure at a point in the year when they typically do the opposite.
But the fact that noncommercial traders have gotten net short just as soybean prices hit one-year lows may actually prove to be supportive for the soybean market going forward, as any year-end position squaring will necessarily now require bouts of buying in the form of short-covering.

Tumble on economic fears; soy ends at 13-month low
CHICAGO, Nov 23 (Reuters) - U.S. wheat and soybeans sank to their lowest prices in more than a year as a downturn in China's manufacturing sector renewed global economic concerns.
"You just had follow-through selling," said Mike Krueger, president of The Money Farm.

Vietnam 2012 top rice crop output to rise 3.8 pct-report
HANOI, Nov 24 (Reuters) - Vietnam is expecting its largest rice crop to increase by 3.8 percent to 11 million tonnes of paddy next year, a state-run newspaper reported on Thursday.
Farmers in the Mekong Delta have so far planted 300,000 hectares (741,300 acres), or a fifth, of the 1.56 million hectares planned for the winter-spring season crop, which has the highest yield and is used mostly for export, the Rural Today newspaper said.

Canada grain sector faces sea change after Wheat Board
OTTAWA, Nov 23 (Reuters) - The end of Western Canada's grain marketing monopoly next year will ripple across the region, redrawing transportation patterns, forcing millers to find new sources of wheat and prompting all players to hedge risk in new ways, according to industry officials meeting in Ottawa this week.
Many point to Australia, which removed its grain-marketing monopoly three years ago, for an idea of how sweeping the changes will be in Canada, the world's No. 3 wheat exporter.

Brazil CS 12/13 cane crop likely at 562 mln T-JOB
SAO PAULO, Nov 23 (Reuters) - Brazil's next center-south sugarcane crop should rise by 7.5 to 16 percent from the current season, helped by an 8-percent increase in area, sugar and ethanol consultants Job Economia said on Wednesday.
Output in the region that accounts for around 90 percent of Brazil's cane output should reach between 540 million and 584 million tonnes, up from the 502 million tonnes being harvested in 2011/12, said Julio Maria Borges, the president of Job.

China scraps orders for up to 300,000 T of palm oil -traders
BEIJING/KUALA LUMPUR, Nov 23 (Reuters) - China has cancelled orders for up to 300,000 tonnes of refined palm oil over the past month as some traders had over-booked cargoes and domestic prices remain lower than that of imports, Asian traders said on Wednesday.
The scrapped orders were for cargoes scheduled for delivery in the first quarter of 2011 when China celebrates Lunar New Year festival in late January with a week long public holiday -- a peak demand season, they said.

Palm oil production up 10 pct in 2011 -Sampoerna
JAKARTA, Nov 23 (Reuters) -    Output at palm oil firm Sampoerna Agro  will grow by more than 10 percent this year, versus 289,000 tonnes in 2010 and higher than a previous estimate, an official of the Indonesian firm said on Wednesday.
Favourable weather will boost production, as will investments made on infrastructure such as road improvements and flood defences, Michael Kesuma, head of investor relations, told Reuters.

Indonesia's ICDX to launch tin, olein palm contracts in 2012
JAKARTA, Nov 23 (Reuters) - The Indonesia Commodity & Derivative Exchange (ICDX) will launch a physical tin contract and palm olein contract in early 2012, its chief executive officer said on Wednesday.
Material for the physical tin contract will be supplied by members of the Indonesia Tin Association, including the world's largest integrated miner, PT Timah ,  ICDX's Megain Widjaja told Reuters.

Brazil cannot sustain sugar export growth rate-Itau
SAO PAULO, Nov 23 (Reuters) - Brazil cannot continue to increase sugar export volumes at the same rate as in recent years but will hang onto about half of global trade, against heightened competition from origins such as Thailand and Ukraine, a senior analyst said on Wednesday.
"It's impossible for Brazil to maintain its rate of growth in market share," Giovana Araujo, head of agribusiness and equity research at Itau BBA, told Reuters in an interview on the sidelines of Brazil Sugar Week.

Brent oil up above $107 as winter, Mideast support
SINGAPORE, Nov 24 (Reuters) - Brent crude rose above $107 as potential strong winter fuel demand and turmoil in the Middle East offset fears that a global economic slowdown could hurt consumption.
"OECD inventories are so low and we're running into winter," he said. "Seasonally December is the highest demand period."

Oil Climbs From Two-Week Low on U.S. Stockpile Drop, Saudi Arabia Violence (Bloomberg)
Oil rose from the lowest price in two weeks as a surprise drop in U.S. stockpiles and violence in Saudi Arabia countered concern that Europe’s debt crisis will threaten the economy. New York futures gained as much as 0.6 percent after earlier swinging between gains and losses. Crude inventories declined last week to the lowest since January 2010, according to an Energy Department report yesterday. Saudi Arabia said four people were killed in violence in the kingdom’s eastern province, the official Saudi Press Agency reported. Oil dropped to the lowest since Nov. 9 yesterday after Germany failed to find buyers for 35 percent of bonds at an auction. “The decrease in inventory is going to be a supportive factor to keep crude oil from losing too much ground,” said Ken Hasegawa, a commodity-derivatives trading manager at Newedge Group in Tokyo. “One hundred dollars is not far from now but I really doubt it will exceed the recent high of around $103.”
Crude for January delivery rose as much as 61 cents to $96.78 a barrel in electronic trading on the New York Mercantile Exchange. It was at $96.76 at 3:49 p.m. Singapore time. The contract earlier lost as much 53 cents. Prices have gained 5.9 percent this year.

LME copper off 1-month low; grim econ outlook weighs
SINGAPORE, Nov 24 (Reuters) - London copper rose more than a percent, recovering from a one-month low hit earlier in the session, but a gloomy outlook for the global economy restrained gains and put prices on track for a fourth straight weekly decline.
"The demand outlook is deteriorating," said David Thurtell, director of commodity research at Citigroup in Singapore.

Mitsubishi buys out partner in Australia iron ore project
MELBOURNE, Nov 24 (Reuters) - Japan's Mitsubishi Corp  has agreed to buy partner Murchison Metals'  stakes in an iron ore development and a port and rail project in Western Australia for $315 million, aiming to rescue the two multi-billion dollar projects.
Beleaguered Murchison's shares jumped more than 50 percent on relief that Managing Director Greg Martin had managed to get the company out of a hole despite tough global conditions.

Indonesia tin smelters to talk exports, contract
PANGKAL PINANG/JAKARTA, Nov 23 (Reuters) - The Indonesia Tin Association is due to meet later on Wednesday to discuss its near two-month tin ingot shipping ban and details of a planned spot market, an official said.
Indonesia, the world's No.2 tin producer after China, has a track record of supply issues that impact prices.

COLUMN-Steel sector mirrors macro faultlines: Andy Home (Reuters)
--Andy Home is a Reuters columnist. The opinions expressed are his own--
Nov 23 - Global steel production is now starting to mirror the faultlines running through the macro manufacturing landscape.
Annualised production in October was 1.46 billion tonnes, the lowest global run-rate so far this year, while year-on-year growth slowed for the third consecutive month to 6.2 percent,according to the World Steel Association (WSA).

METALS-LME copper off 1-month low; grim econ outlook weighs
SINGAPORE, Nov 24 (Reuters) - London copper rose more than a percent on Thursday, recovering from a one-month low hit earlier in the session, but a gloomy outlook for the global economy restrained gains and put prices on track for a fourth straight weekly decline.
"The demand outlook is deteriorating," said David Thurtell, director of commodity research at Citigroup in Singapore.

PRECIOUS-Gold steadies; equities and firm dollar weigh
SINGAPORE, Nov 24 (Reuters) - Gold steadied on Thursday but declines in equities blamed on the euro zone crisis could prompt investors to sell bullion to cover losses, while a firmer U.S. dollar also put pressure on prices, which have slipped more than 10 percent since hitting record.
"The safe haven bid for gold could come back. For the short-term however, gold prices are still tracking broad movements in equity and commodity markets," said Ong Yi Ling, an analyst at Phillip Futures in Singapore.

Gold steadies; equities and firm dollar weigh
SINGAPORE, Nov 24 (Reuters) - Gold steadied but declines in equities blamed on the euro zone crisis could prompt investors to sell bullion to cover losses, while a firmer U.S. dollar also put pressure on prices, which have slipped more than 10 percent since hitting record.
"The safe haven bid for gold could come back. For the short-term however, gold prices are still tracking broad movements in equity and commodity markets," said Ong Yi Ling, an analyst at Phillip Futures in Singapore.

20111124 1122 Global Market & Commodities Related News.

GLOBAL MARKETS-Asia stocks fall, German bond sale shakes euro
SINGAPORE, Nov 24 (Reuters) - Asian shares fell on Thursday and the euro struggled close to a seven-week low to the dollar after a botched German bond sale raised alarm that Europe's ever-worsening sovereign debt crisis is starting to affect even the continent's economic powerhouse.
"This may no longer be the case. And that is extremely worrying. We are journeying more and more into uncharted waters here."

COMMODITIES-Oil, metals slide on German bond sale, China data
NEW YORK/LONDON, Nov 23 (Reuters) - Commodities slid on Wednesday after top raw material consumer China reported weaker factory growth and the near flop of a German bond sale raised concerns the debt crisis was threatening Europe's biggest economy.
"It is a complete and utter disaster," said Marc Ostwald, strategist at Monument Securities in London, after the Bundesbank was forced to retain almost half of a sale of 6 billion euros of debt due to a shortage of bids by investors.

Oil slides nearly 2 pct on global economic woes
NEW YORK, Nov 23 (Reuters) - Crude oil futures slumped nearly 2 percent on Wednesday as weak economic data from Europe, China and the United States painted a somber outlook for global oil demand.
"The large crude oil drawdown and low level of imports gives the report a supportive tone, but the gasoline inventory build and the continuing trend of lackluster demand trumps the crude data," said John Kilduff, a partner at Again Capital LLC in New York.

Natural gas ends higher for third straight day
NEW YORK, Nov 23 (Reuters) - U.S. natural gas futures ended higher for a third straight day on Wednesday, boosted by a much-smaller-than-expected weekly build in winter inventories and some short-covering ahead of the long Thanksgiving holiday weekend.
"For the last few weeks the actual data has been coming in below most of the expectations and that could also happen next week, especially if we get any kind of cold weather over the next few days," Chirichella said.

Euro Coal-S.African slumps to just over $100/T
LONDON, Nov 23 (Reuters) - Physical South African coal prices slipped by $3.00 a tonne to just over $100.00 a tonne on Wednesday as producers and traders struggled to sell prompt tonnes in the face of weak demand globally and in line with falls in oil and equities.
"Richards Bay is a coal without any visible means of support," one European trader said, referring to the lack of buying interest in Asia or Europe.

20111124 1120 Local & Global Economic Related News.

Malaysia: Inflation up 3.4% in October
The country's inflation rate as measured by the consumer price index (CPI) remained unchanged at 3.4% in Oct on a y-o-y basis, with prices mainly driven by growth in the food component. This was in line with market expectations and was just slightly above the median of 3.3% in a Bloomberg survey of economists. The Statistics Department said m-o-m, prices were up 0.2% with food and non-alcoholic beverages as well as non-food items for Oct 2011 showing increases of 5.7% and 2.4% respectively when compared with the corresponding month. (StarBiz)

China: Lowers reserve ratio for some rural credit cooperatives
China’s central bank is lowering reserve requirements for more than 20 rural cooperative banks by 0.5% point, adding to signs of a shift toward allowing greater credit growth as the economy slows. The move reduces the percentage of deposits that the cooperatives are required to park with the central bank to 16% a “normalization” after an increase a year ago, the People’s Bank of China’s Hangzhou branch said in an e-mailed statement yesterday. The central bank gave no indication whether it may cut reserve requirements for the largest commercial banks, a step that Bank of America Merrill Lynch predicts may come in January. (Bloomberg)

India: Eases rules to boost USD inflows as currency slumps
India’s central bank eased rules for companies to borrow abroad and raised the interest rate on bank deposits by its citizens living overseas to help stem the decline in Asia’s worst-performing currency. Companies borrowing abroad can now pay as much as 3.5% points over the London Interbank Offered Rate for loans longer than three years and up to five years, raising the cap by 50 basis points, or 0.5% point, according to a central bank statement in Mumbai today. For non-resident Indians, the spread over Libor was increased between 25 basis points and 100 basis points for two different deposit plans. The measures follow after the INR plunged to a record low yesterday on concern Europe’s debt crisis will hurt demand for emerging market assets. (Bloomberg)

India: Syndicated loans slide 87% as debt costs swell
India’s companies cut borrowings in the global syndicated-loan market by 87% this month as the INR drop to a record low increases the cost of servicing overseas debt. Uco Bank, a state-owned lender based in Kolkata, raised USD113m on 4 Nov and was the lone borrower this month, compared with the USD1.3bn five companies borrowed in October, according to data compiled by Bloomberg. The INR weakened to a record-low 52.73/USD this week and posted the worst decline among Asia’s most-traded currencies on concern India won’t be able to rein in its budget and trade deficits. Companies are being squeezed after non-INR loans slumped to the least since Aug 2009 and local borrowing costs surged 225 basis points this year. (Bloomberg)

Qatar: Returning to bond markets to tap US demand
Qatar, the world’s fastest growing economy, may benefit from US and European demand for safer assets as the gas-rich nation returns to the debt market for the first time in two years. Investors are seeking bonds from the oil-rich Persian Gulf region after a lull caused by the debt crisis in the US and Europe and the Arab uprisings. State-controlled Abu Dhabi Islamic Bank PJSC received more than USD2bn in bids for its USD500m sukuk this week, while Bahrain raised USD750m and Abu Dhabi Commercial Bank PJSC borrowed USD500m in Islamic bonds. (Bloomberg)

Brazil: Bonds lure biggest investment since 2007 on rates
Investors are pouring the most money into Brazilian bond funds since 2007. Fixed-income funds received BRL2.8bn last month, pushing the YTD amount to a four-year high of BRL67bn and helping drive yields on notes due 2014 down 239 basis points in the past four months to 10.46%. Yields on similar-maturity Mexican government bonds fell 62 basis points, or 0.62% point, in the same period to 4.85%, according to data compiled by Bloomberg. Brazilian bonds have rallied since the central bank began cutting rates in Aug, part of an effort by developing countries from Israel to Indonesia to spur economic growth amid the global slowdown. (Bloomberg)

US stocks decline as European bond risk increases to record
US stocks slumped, sending the Standard & Poor’s 500 Index down for a sixth straight day, as the cost of insuring European government debt against default rose to a record on concern the region’s crisis is worsening. The S&P 500 slid 2.2% to 1,161.79, the lowest since 7 Oct. It lost 7.6% in six days, the most since 10 Aug. The Dow Jones Industrial Average fell 236.17 points, or 2.1%, to 11,257.55. About 6.9bn shares changed hands on US exchanges, 16% below the three-month average, ahead of Thanksgiving. (Bloomberg)

US: Spending to durable goods trim US growth outlook
Americans pulled back on spending in October and manufacturers received fewer orders for durable goods, tempering expectations for a pickup in economic growth in the fourth quarter. Consumer purchases, which account for 70% of the economy, increased 0.1% after a 0.7% gain in September, Commerce Department figures showed yesterday in Washington. Bookings for equipment meant to last at least three years fell 0.7% after a 1.5% drop in September. Unemployment stuck near 9% and confidence at recession levels prompted consumers to curb spending on the eve of the holiday shopping season. Manufacturers may see orders cool as the European sovereign-debt crisis roils financial markets and threatens the global expansion. (Bloomberg)

US: Fed seeks to bolster confidence in banks with stress tests
The Federal Reserve sought to bolster confidence in the US banking system as concerns over the European sovereign-debt crisis roil financial markets and pose risks to the economic expansion. The Fed yesterday told the 31 largest US banks to test their loan portfolios against a deep recession to ensure they have enough capital to withstand losses. Banks with large trading operations will also test against a European market shock. The most severe scenarios outlined by the Fed include an unemployment rate of as much as 13%, an 8% drop in gross domestic product and a 52% plunge in stocks from the third quarter of 2011 to the fourth quarter of 2012. (Bloomberg)

20111124 1119 Malaysia Corporate Related News.

Law-Shougang steel venture starts next month
Hiap Teck Ventures Bhd's 55%-owned Eastern Steel SB, controlled by businessman Datuk David Law Tien Seng, will begin work on the first phase of its integrated steel complex in Kemaman next month, with an initial cost of RM754m and a targeted completion by mid-2013. (StarBiz)

Pavilion REIT expected to raise RM710m from IPO
Pavilion Real Estate Investment Trust (REIT), a shopping mall trust part-owned by Qatar Investment Authority, is raising RM710m in an initial public offering (IPO), two people with knowledge of the matter said. The company plans to sell units at 90 sen apiece to institutions and at 88 sen to retail investors, said the people, who asked not to be identified as pricing details are private. Pavilion REIT had marketed the units at 88 sen to 90 sen. The IPO will be the Southeast Asian nation's fourth biggest this year, after share sales by Bumi Armada, UOA Development and MSM Malaysia. (BT)

Bursa Securities raps Faber for breaching listing rules
Bursa Malaysia Securities has publicly reprimanded Faber Group over the delay in announcing that Abu Dhabi’s municipal had not renewed its subsidiary’s contracts in January this year. The regulator said Faber had only announced on 12 Jan that the emirate’s Department of Municipal Affairs, Western Region Municipality had not renewed Faber Ltd Liability Co’s contracts, two days after it was informed of the decision. (Financial Daily)

SAAG in talks on RM600m Tamil Nadu project
SAAG Consolidated (M) said it is in the final stages of clinching a contract worth more than RM600m to build houses in the southern Indian state of Tamil Nadu. In a filing to Bursa Malaysia yesterday, the group said its India-listed subsidiary SAAG RR Infra Ltd is presently in advanced stage of negotiations with the main licensee of the affordable housing project in India which has the rights for the German technology to build 60,000 solar-powered affordable homes per annum for Tamil Nadu. (StarBiz)

MAS: Ong to replace Leong
Ignatius Ong Ming Choy is taking over from Datuk Eddy Leong as chief operating officer of Firefly. MAS, in a statement yesterday, confirmed Leong's resignation and said he would remain with the group until 31 Dec. He would be working with group chief executive officer Ahmad Jauhari Yahya for seamless business continuity by ensuring a smooth handover to Ong, it added. (StarBiz)

20111124 0953 Renewable Energy Related News.

CHINESE SOLAR COMPANY LOSSES MOUNT BUT STOCKS SOAR
Nov 22 (Reuters) - Chinese solar companies including Suntech Power Holdings Co Ltd  , JA Solar Holdings Co Ltd  and LDK Solar
Co Ltd  posted larger-than-expected quarterly losses and warned that the sector's bleak outlook would continue well into next
year.
But shares in the companies, which initially traded lower on Tuesday, rebounded later in the day, led by Suntech, which
erased losses made during the previous three trading sessions.

GOOGLE QUITS PLANS TO MAKE CHEAP RENEWABLE ENERGY
SAN FRANCISCO, Nov 22 (Reuters) - Google Inc  has abandoned an ambitious project to make renewable energy cheaper than coal,
the latest target of Chief Executive Larry Page's moves to focus the Internet giant on fewer efforts.
Google said on Tuesday that it was pulling the plug on seven projects, including Renewable Energy Cheaper than Coal as well
as a Wikipedia-like online encyclopedia service known as Knol.

MOZAMBIQUE PLANS TO UP CAHORA HYDROELECTRIC OUTPUT
MAPUTO, Nov 22 (Reuters) - Mozambique plans to raise output at the big Cahora Bassa hydroelectric dam to 3,220 MW from 2,075
MW over next five years to meet rising demand in the country and in the southern African region, an official said on Tuesday.
Chief Executive for Cahora Bassa, Paulo Muxanga, said the project in the Tete province would cost around $1 billion and would
be funded both by the company and private investors, but did not give any more details.
 
UK RENEWABLE ENERGY SUPPLY TO JUMP TO 33 PCT-NATGRID
LONDON, Nov 22 (Reuters) - Britain's total energy supply from renewable sources is set to double to more than 30 percent
between 2020 and 2030 if the government reaches its climate and renewable energy policy targets, the National Grid  said on
Tuesday.
Renewable energy generation is set to rise from 232 terawatt-hours (TWh) in 2020 to 474 TWh between 2020 and 2030, a share of
33 percent of total supply, Britain's grid operator said in its 'Gone Green Scenario', which is part of its UK Future Energy
Scenarios published on Tuesday.
 
ROMANIA'S HIDROELECTRICA WANTS 50 PCT PRICE HIKE
BUCHAREST, Nov 22 (Reuters) - Romanian state-owned hydro power producer Hidroelectrica wants a 50 percent hike in tariffs for
household consumers from 2012, its director said on Tuesday, because it is struggling with a drought and high costs.
Tariffs for householders are set by Romanian energy regulator ANRE, which has tried to cushion the blow of a painful two-year
recession by keeping prices stable.
 
SPAIN HYDRO, IRRIGATION RESERVES EDGE HIGHER
MADRID, Nov 22 (Reuters) - Spain has more potential than a week ago to generate hydropower and irrigate crops in order to
ease its hefty gas- and grain-import bill, the latest official data showed on Tuesday.
Reservoirs set aside for hydropower plants held enough water to generate 11,511 gigawatt-hours , a rise of 127 GWh from last
week, the Ministry for the Environment and Rural Affairs said.
 
CHINA SOLAR FIRMS SEEK U.S. POLYSILICON IMPORTS PROBE
HONG KONG, Nov 22 (Reuters) - Chinese solar companies may ask Beijing to launch an anti-dumping and subsidy probe into
imports of U.S. polysilicon, raw material used to make solar cells, into the mainland, a top official of China's solar
industry association said on Tuesday.
China has been suffering from an overcapacity in polysilicon following a spate of investment in the sector after polysilicon
prices peaked four years ago.
 
SUNTECH POSTS WIDER-THAN-EXPECTED Q3 LOSS
Nov 22 (Reuters) - Suntech Power Holdings Co Ltd  posted a wider-than-expected quarterly loss, hurt by the depreciation of
euro, and the China-based company slashed its revenue and shipment outlook for the full year.
Suntech, the largest producer of photovoltaic solar panels in the world by volume, cut its revenue forecast to $3-$3.1
billion from $3.2-$3.4 billion.
 
PANASONIC TO BUILD SOLAR PANEL PLANT IN MALAYSIA –SOURCES
TOKYO, Nov 18 (Reuters) - Panasonic Corp  will invest as much as 50 billion yen ($645 million) to build a solar panel plant
in Malaysia, its first such facility overseas, as a strong yen pushes up production costs at home, two industry sources told
Reuters.
The firm, which has been touting environmental and energy technology as key growth areas, dropped a plan to convert a
television panel plant in Western Japan into a solar power factory in October because of the rising yen and an industry price
war.
 
WORLD BANK OKS $297 MLN FOR MOROCCO SOLAR PLANT
WASHINGTON, Nov 17 (Reuters) - The World Bank on Thursday approved loans to Morocco totaling $297 million to help finance the
first phase of a 500 megawatt solar power plant, among the largest in the world.
The Ouarzazate concentrated solar power plant is the first in Morocco's $9 billion solar power program, vital for a country
that has no oil or gas but has an abundance of sun.

DUTCH FALL OUT OF LOVE WITH WINDMILLS
EGMOND AAN ZEE, Netherlands, Nov 16 (Reuters) - When the Netherlands built its first sea-based wind turbines in 2006, they
were seen as symbols of a greener future.  
Towering over the waves of the North Sea like an army of giants, blades whipping through the wind, the turbines were the
country's best hope to curb carbon emissions and meet growing demand for electricity.
 
FIRST SOLAR COULD SUPPLY TWO MAJOR U.S. PROJECTS
Nov 16 (Reuters) - German solar project developer solarhybrid AG  said on Wednesday it plans to use First Solar Inc  panels
in two major U.S. power plants as part of its plan to take over Solar Millennium AG's  U.S. project pipeline.
The news comes three months after Solar Millennium said it would convert its massive California project - expected to one day
be the world's largest solar power plant - to photovoltaic panel technology instead of solar thermal power because of the
dramatic drop in the price of solar panels.

EPA APPROVES CALIF. PALMDALE GAS/SOLAR POWER PLANT
Nov 16 (Reuters) - The U.S. Environmental Protection Agency (EPA) issued a permit to the City of Palmdale in California to
build its Palmdale natural gas/solar power plant.
In a release Wednesday, the EPA said the 570 megawatt natural gas-fired power plant, with 50 MW of solar energy generation,
is the first of its kind in the nation required to limit greenhouse gas emissions.

20111124 0952 Biofuel Related News.

EU LIKELY TO CURB INDONESIAN PALM BIOFUEL IMPORTS
KUALA LUMPUR, Nov 23 (Reuters) - European Union (EU) governments are likely to curtail their imports of Indonesian palm
oil-based biofuel, which has become cheaper due to a tax cut, to protect their own domestic plants, a top analyst said on
Wednesday.
"The EU has supported the build of local production capacity that is heavily underutilised and will not be able to survive if
foreign competitors to rapeseed biodiesel cannot be kept out of the market," Fredrik Erixon, director of the European Centre
for International Political Economy told Reuters.

BRAZIL CANE INDUSTRY CONFRONTS ITS OUTPUT LIMITS
SAO PAULO, Nov 22 (Reuters) - Brazil's once booming cane sector is coming to grips with its own limits and curbing unrealistic expectations, after a frustrating harvest and a still unclear investment environment ahead.
After the years of euphoria that ended with the 2008 global financial crisis, the industry is now adopting a more relaxed approach when talking about prospects for sugar and ethanol production over the next few years. Demand forecasts however remain bright.
 
CANE MILL BUILDING COSTS MORE ATTRACTIVE-PETROBRAS
SAO PAULO, Nov 22 (Reuters) - Rising prices of existing cane mills in Brazil are turning the option of building new ones more
attractive for those companies willing to expand capacity, a director at state-run oil company Petrobras said Tuesday.
This would represent a change in a trend that has been in place since the 2008 global financial crisis, which caught many
mills too indebted in the middle of ambitious expansion programs.

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.

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.
 
US ETHANOL OUTPUT AND STOCKS RISE IN LAST WEEK
Nov 16 (Reuters) - U.S. ethanol production rose as did stocks in the last week, the Energy Information Administration
reported Wednesday.
U.S. ethanol production totaled 916,000 barrels per day in the seven days to Nov. 11, up 5,000 barrels per day from the
previous week.

EU BIOFUEL TARGET SEEN DRIVING SPECIES LOSS -STUDY
BRUSSELS, Nov 16 (Reuters) - A European Union target to promote the use of biofuels will accelerate global species loss
because it encourages the conversion of pasture, savanna and forests into new cropland, EU scientists have warned.
The finding raises fresh doubts over the benefits of biofuels, which were once seen as the most effective way of cutting road
transport emissions, but whose environmental credentials have increasingly been called into question.

20111124 0950 Global Market Related News.

Asia Stocks Fall, Won Drops on Europe Concern (Source: Bloomberg)
Asian stocks (MXAP) fell to a seven-week low and South Korea’s won weakened a fifth day after bidding in a German bund auction fell short of the offer amount, fueling concern Europe’s debt crisis is worsening. The MSCI Asia Pacific Index slumped 0.5 percent as of 9:21 a.m. in Tokyo, set for the lowest close since Oct. 5. The Nikkei 225 Stock Average sank 1.6 percent as Japan’s financial markets resumed trading after a holiday yesterday. Standard & Poor’s 500 Index futures were little changed before the Thanksgiving break. The won dropped as much as 0.7 percent to 1,160.30 per dollar and the euro traded at $1.3358 from $1.3342 yesterday, when it lost 1.2 percent. Oil dipped 0.5 percent to $95.72 in New York.
German 10-year yields jumped yesterday after bids at a sale of securities repayable in January 2022 fell 35 percent short of the 6 billion euros ($8 billion) on offer, signaling bunds are losing their haven status as Europe’s crisis spreads. Economic data yesterday showed services and manufacturing output in the 17-nation euro region shrank for a third month, while U.S. durable goods orders fell and jobless claims topped forecasts.

Asia Stocks Fall on German Debt Sale (Source: Bloomberg)
Asian stocks (MXAP) fell for a second day after Germany failed to receive sufficient bids at a debt sale, adding to concern Europe’s crisis is worsening and driving away investors from risky assets. Sony Corp., Japan’s No. 1 exporter of consumer electronics that gets 21 percent of its sales in Europe, fell 3 percent. Sumitomo Mitsui Financial Group Inc., Japan’s second-biggest lender by market value, dropped 1.4 percent. Billabong International Ltd., a global surfwear maker, fell 8.2 percent in Sydney. The MSCI Asia Pacific Index dropped 0.5 percent to 109.77 as of 9:17 a.m. in Tokyo. Almost four stocks fell for each that rose on the index.
“The market has finally realized that Germany has a high level of public debt,” said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which has almost $100 billion under management. “Germany looks to be losing its safe-haven status, and it highlights the extent to which the European debt crisis has deteriorated. It can be only bad news for risky assets like equities.”

U.S. Stocks Decline as Europe Bond Risk Climbs (Source: Bloomberg)
U.S. stocks slumped, sending the Standard & Poor’s 500 Index down for a sixth straight day, as the cost of insuring European government debt against default rose to a record on concern the region’s crisis is worsening. About nine stocks fell for each that rose on U.S. exchanges. Alcoa Inc. (AA) and Halliburton Co. (HAL) tumbled at least 4.1 percent as data indicated China manufacturing will shrink, sparking concern about slower demand for commodities. Bank of America (BAC) Corp. dropped 4.3 percent to the lowest since March 2009. Groupon Inc., the largest Internet daily-deal site, plunged 16 percent to below its initial public offering price.
The S&P 500 slid 2.2 percent to 1,161.79 at 4 p.m. New York time, the lowest since Oct. 7. It lost 7.6 percent in six days, the most since Aug. 10. The Dow Jones Industrial Average fell 236.17 points, or 2.1 percent, to 11,257.55. About 6.9 billion shares changed hands on U.S. exchanges, 16 percent below the three-month average, ahead of Thanksgiving. The market will close tomorrow and trading will end at 1 p.m. on Nov. 25.

European Stocks Retreat for Fifth Day as German Bond Auction Misses Target (Source: Bloomberg)
European stocks declined, with the benchmark Stoxx Europe 600 Index posting its longest losing streak since August, as Germany failed to attract sufficient bids at an auction of benchmark 10-year bunds. Rio Tinto Group, the world’s second-largest mining company (RIO), dropped 2.3 percent as Australia’s lower house of parliament passed legislation introducing a tax on coal and iron-ore profits. Logica (LOG) Plc, the Anglo-Dutch computer services provider, slid 4.2 percent after Jefferies Group Inc. cut its recommendation on the shares. Dexia SA (DEXB) jumped 13 percent. The Stoxx 600 declined 1.3 percent to 220.31 at the close in London, for a fifth day of losses. The benchmark index has tumbled 7.1 percent over the last five trading days as Italian, Spanish and French bond yields soared, adding to concern that the debt crisis is spreading to the euro area’s larger economies.

U.K. Stocks Post Longest Losing Streak Since 2003; RBS, Lloyds Decline (Source: Bloomberg)
U.K. stocks (UKX) fell for an eighth day, their longest stretch of losses since 2003, as euro area borrowing costs climbed after a German bond auction fueled concern the region’s debt crisis is worsening. Royal Bank of Scotland Group Plc (RBS) and Barclays Plc (BARC) both lost more than 3 percent as costs to insure government debt in Europe climbed to a record. Rio Tinto Group retreated 2.3 percent after a report showed Chinese manufacturing may contract and Australia passed a mining tax. The FTSE 100 Index sunk 67.04, or 1.3 percent, to 5,139.78 at the close in London, extending the gauge’s loss since Nov. 11 to 7.3 percent. The FTSE All-Share Index dropped 1.3 percent, while Ireland’s ISEQ Index slid 1.2 percent.
“The headlines out of Europe continue to be negative and this is forcing many investors to move away from anything risky,” said Joshua Raymond, chief market strategist at City Index in London. “The German bond auction was a real shock to the markets. The lack of appetite for bonds naturally raises suspicion that perhaps investors are starting to question the strength of Germany.”

Consumer Spending, Durable Orders Signal Slower Growth (Source: Bloomberg)
Americans pulled back on spending in October and manufacturers received fewer orders for durable goods, tempering expectations for a pickup in economic growth in the fourth quarter. Consumer purchases, which account for 70 percent of the economy, increased 0.1 percent after a 0.7 percent gain in September, Commerce Department figures showed today in Washington. Bookings for equipment meant to last at least three years fell 0.7 percent after a 1.5 percent drop in September. Unemployment stuck near 9 percent and confidence at recession levels prompted consumers to curb spending on the eve of the holiday shopping season. Manufacturers may see orders cool as the European sovereign-debt crisis roils financial markets and threatens the global expansion.

Fed Seeks to Bolster Confidence in 31 Largest U.S. Banks With Stress Tests (Source: Bloomberg)
The Federal Reserve sought to bolster confidence in the U.S. banking system as concerns over the European sovereign-debt crisis roil financial markets and pose risks to the economic expansion. The Fed yesterday told the 31 largest U.S. banks to test their loan portfolios against a deep recession to ensure they have enough capital to withstand losses. Banks with large trading operations will also test against a European market shock. The most severe scenarios outlined by the Fed include an unemployment rate of as much as 13 percent, an 8 percent drop in gross domestic product and a 52 percent plunge in stocks from the third quarter of 2011 to the fourth quarter of 2012. “This is a daunting test,” said Karen Shaw Petrou, managing partner at Federal Financial Analytics, a Washington regulatory research firm whose clients include the largest banks. “The Fed’s credibility as a tough guy can’t be challenged based on this.”

Confidence Among U.S. Consumers Rises to the Highest Level in Five Months (Source: Bloomberg)
Confidence among U.S. consumers rose in November to the highest level in five months. The Thomson Reuters/University of Michigan final index of consumer sentiment rose to 64.1 this month, the highest since June, from 60.9 in October. The median estimate of economists surveyed by Bloomberg News called for a reading of 64.5. Further gains in sentiment, which is still at levels seen during the last recession, may provide ballast for the consumer spending that makes up about 70 percent of the economy. Unemployment hovering around 9 percent and concerns over a possible euro zone default and deficit reduction gridlock in the U.S. are weighing on consumers’ spirits. “Confidence is still in recession territory, well below normal,” Sal Guatieri, a senior U.S. economist at BMO Capital Markets in Toronto, said before the report. “Confidence hasn’t fully recovered the drop-off from earlier in the summer that stemmed in part from the debt-ceiling fiasco, the downgrade and the escalation of the euro credit crisis.”

Orders for U.S. Durable Goods Fall as Demand Cools for Jets, Capital Goods (Source: Bloomberg)
Orders for durable goods fell in October as demand for aircraft and business equipment cooled, indicating a slowing global economy may temper purchases of U.S. manufactured goods. Bookings for equipment meant to last at least three years declined 0.7 percent, less than forecast, after a 1.5 percent drop the prior month that was more than twice as large as originally reported, data from the Commerce Department showed today in Washington. Excluding defense and aircraft, demand for computers and other business equipment decreased by the most since January. The risk the global economy is losing steam as Europe deals with its debt crisis may lead overseas companies, which have supported U.S. factories, to scale back. Even so, a government tax break targeted at stimulating business investment may sustain capital investment while a weaker dollar keeps American- made goods attractive to foreign buyers.

Initial Claims Rise; Durable Goods Orders Fall  (Source: Bloomberg)
Nov. 23 (Bloomberg) -- More Americans than forecast filed for unemployment benefits last week. Applications for jobless insurance increased 2,000 in the week ended Nov. 19 to 393,000, Labor Department figures showed. Economists forecast 390,000 claims according to the median estimate in a Bloomberg News survey. Orders for durable goods fell 0.7 percent in October after a 1.5 percent revised drop the prior month, and consumer spending rose 0.1 percent for the month, the Commerce Department added. Betty Liu, Dominic Chu and Michael McKee report on Bloomberg Television's "In the Loop." (Source: Bloomberg)

China Lowers Reserve Ratio for Some Banks (Source: Bloomberg)
China’s central bank is lowering reserve requirements for more than 20 rural cooperative banks by half a percentage point, adding to signs of a shift toward allowing greater credit growth as the economy slows. The move reduces the percentage of deposits that the cooperatives are required to park with the central bank to 16 percent, a “normalization” after an increase a year ago, the People’s Bank of China’s Hangzhou branch said in an e-mailed statement yesterday. The central bank gave no indication whether it may cut reserve requirements for the largest commercial banks, a step that Bank of America Merrill Lynch predicts may come in January. Yesterday’s decision follows a pledge by Premier Wen Jiabao’s government to implement more “forward looking” and flexible monetary policy as the global economy struggles to sustain its recovery. With prospects for Chinese export demand slipping, a preliminary manufacturing purchasing manager index for November fell to its lowest level since 2009.

Chinese Banks ‘Built on Quicksand’: Chanos (Source: Bloomberg)
Chinese banks are “extremely fragile” because the lenders don’t have enough capital to offset bad loans, said Jim Chanos, president and founder of the $6 billion hedge fund Kynikos Associates Ltd. Chinese lenders are saddled with non-performing loans accumulated in the late 1990s and early 2000s, Chanos, the short seller who predicted the collapse of Enron Corp. in 2001, said in an interview on Bloomberg Television yesterday. The banks are failing to recognize the losses on the bad loans and have carried out a lending binge since 2008, said Chanos. “The Chinese banking system is built on quicksand and that’s the one thing a lot of people don’t realize,” said Chanos, who is shorting the shares of Agricultural Bank of China. “Everybody seems to think it is a free and clear open checkbook. It’s not. The banking system in China is extremely fragile.”

Manufacturing in China May Contract Most in Three Years as Housing Falters (Source: Bloomberg)
China’s manufacturing may contract this month by the most since March 2009 as home sales slide, adding to evidence the world’s second-biggest economy is slowing, a preliminary purchasing managers’ index shows. The reading of 48 reported by HSBC Holdings Plc and Markit Economics today compares with a final number of 51 last month. A number below 50 indicates a contraction. Europe’s sovereign-debt crisis threatens to cut export demand just as small businesses complain of a credit squeeze, and Premier Wen Jiabao’s campaign to cool home prices triggered a 25 percent slump in sales last month. Today’s Chinese data indicated easing inflation pressures that leave more room for measures to boost growth after the U.S. yesterday reported a weaker-than-estimated expansion.

India Relaxes Rules to Boost Dollar Supply (Source: Bloomberg)
India’s central bank loosened rules for companies to borrow abroad and raised the interest rate on bank deposits by its citizens living overseas to help stem the decline in Asia’s worst-performing currency. Companies borrowing abroad can now pay as much as 3.5 percentage points over the London Interbank Offered Rate for loans longer than three years and up to five years, raising the cap by 50 basis points, or 0.5 percentage point, according to a central bank statement in Mumbai yesterday. For non-resident Indians, the spread over Libor was increased between 25 basis points and 100 basis points for two different deposit plans. The measures follow after the rupee plunged to a record low this week on concern Europe’s debt crisis will hurt demand for emerging market assets. Restraining the rupee’s slide will aid the Reserve Bank of India’s fight against inflation, which is the highest among BRIC nations.

Japanese Shift Funds to Gilts From Bunds (Source: Bloomberg)
Japanese investors are buying more bonds in the U.K. than in any other nation overseas as Europe’s struggle to control its debt crisis left Germany unable to complete a sale of securities yesterday. Money managers in Japan scooped up 1.53 trillion yen ($19.9 billion) of U.K. gilts in 2011 through Sept. 30, set for the biggest annual purchase since 2008, Ministry of Finance data showed on Nov. 9 in Tokyo. Japanese investors unloaded the most debt in Germany, totaling almost 1.46 trillion yen, followed by sales in Italy and France, the figures show. Demand for gilts has pushed 10-year yields to parity with German bunds for the first time since 2009 and to levels unseen in two decades against Japanese debt. Nissay Asset Management Corp., Mitsubishi UFJ Asset Management Co. and Mizuho Asset Management Co., which manage a combined $192 billion, are all bullish on U.K. bonds after investors pulled money out of Europe, sending Italian and Spanish yields to euro-era highs.

BOE’s Miles Sees Risk a Country May Exit Euro Area as Debt Crisis Persists (Source: Bloomberg)
Bank of England policy maker David Miles said there’s a risk a country may leave the 17-nation euro area and that the threat from the region’s crisis has increased uncertainty about the outlook for the U.K. economy. “I don’t think any of us can feel confident one way or another about whether all the countries that are currently in the euro zone will still be in it,” Miles said in an interview on ITV broadcast late yesterday. In the U.K., “the return to more normal rates of growth is something that is going to be a gradual process over the course of the next two years,” Miles said. “There’s plenty of risks and that might turn out to be too optimistic, that might turn out to be too pessimistic.” The Bank of England, which restarted bond purchases in October to aid the recovery, cut its 2012 growth forecast this month by more than half. While data today may show that gross domestic product rose 0.5 percent in the third quarter, the central bank said yesterday that underlying growth was probably weaker than that.

Greece Has Last Chance to Reshape Economy, Stay in Euro, Central Bank Says (Source: Bloomberg)
Greece has one last chance to reshape its economy and stay in the euro region, the country’s central bank said, adding to European Union pressure on Greek political leaders to move decisively on economic revamping. A 130 billion-euro ($174 billion) bailout approved by EU leaders on Oct. 26 “represents a milestone on the adjustment path of the Greek economy,” the Bank of Greece said today in its interim monetary policy report. Greece’s debt-sustainability dynamics have changed in the past year, putting the country in its most critical situation since World War II. “We must step up the pace not just to reach our goals but to make up for lost ground,” Greek central bank Governor George Provopoulos said in Athens, according to an e-mailed transcript of his statements. “What is at stake is very great: it is Greece remaining a member of the euro and I think that for most Greeks there is no dilemma here. We must succeed.”

Dollar Is Near Seven-Week High Versus Euro Before German Sentiment Report (Source: Bloomberg)
The dollar was 0.2 percent from a seven-week high against the euro before a German report that may show a gauge of business confidence dropped for a fifth month, increasing the allure of the U.S. currency as a haven. Europe’s common currency held a loss against the yen as Italy prepares to sell bills tomorrow after Germany failed to get bids for 35 percent of the 10-year government bonds that it offered for sale yesterday. The Australian dollar was within 0.1 percent of a one-month low against the yen on prospects Asian stocks will extend a global rout of equities. “There will be a rush for safe havens like the dollar now,” said Kurt Magnus, executive director of currency sales in Sydney at Nomura Holdings Inc., Japan’s biggest brokerage. “It’s quite clear that the picture is deteriorating at a fast pace in the euro zone.”

Euro Tumbles to a Six-Week Low as German Bond Sale Fuels Concern on Crisis (Source: Bloomberg)
The euro fell to a six-week low against the dollar after Germany received insufficient bids at a bond auction, adding to concern Europe’s sovereign-debt crisis is driving investors away from the region’s assets. The dollar climbed versus all of its 16 most-traded peers as a gauge of European services and manufacturing shrank and data signaled China’s manufacturing will slip. The euro weakened further as European Union Economic and Monetary Affairs Commissioner Olli Rehn said the crisis is “ravaging Europe.” Brazil’s real was the biggest loser versus the greenback. “The U.S. seems like a lonely safe-haven destination, and the dollar is the safe haven by default,” said David Mann, regional head of research for the Americas at Standard Chartered in New York. “The feeling we are getting is that people are looking to sell the euro on any rally, which may mean that any rallies will be very shallow at this point.”

JPMorgan to Purchase Bankrupt MF Global Holdings in London Metal Exchange (Source: Bloomberg)
JPMorgan Chase & Co. (JPM) agreed to buy the London Metal Exchange shares of MF Global U.K. Ltd., while talks on the sale of remaining assets in the U.K. continue, the special administrator said. MF Global (MF) filed for bankruptcy protection last month after making bets that went bad on European sovereign debt. Its British unit, MF Global U.K. Ltd., one of 12 category 1 members of the LME that normally hold the right to trade on the floor, was stopped from trading on the bourse on Oct. 31. The company’s special administrator in Britain, KPMG LLP, put the unit’s stake on sale. Following a “competitive bidding process,” JPMorgan agreed to purchase all of MF Global’s shareholding, Richard Fleming, Richard Heis and Mike Pink, the special administrators of MF Global U.K. Ltd. at KPMG, said today in an e-mailed statement. “The sales process for various aspects of the MF Global U.K. business continues apace and we are in negotiations with several parties to this end,” Heis said in the statement.

20111124 0948 Global Commodities Related News.

Corn (Source: CME)
US corn futures end lower on worries about the world economy and poor export demand. Fears about Europe's debt crisis and a potential downturn in China weighed on markets broadly. Corn's downward trend has prompted speculative selling, traders note, and weak exports are also weighing. However, US supplies are still seen as tight. CBOT December corn ends down 10 1/4c at $5.88 3/4 per bushel.

Wheat (Source: CME)
US wheat futures stumble further thanks to poor demand and ongoing outside-market pressure. Prices hit 5-month lows, with the greatest losses in nearby futures, particularly in Chicago. Poor export demand looms, as does worry about the global economy, with concerns about Europe and China in the spotlight. CBOT December wheat ends down 2.4% at $5.79 1/4 a bushel while KCBT December drops 12c to $6.49 and MGEX December slides 2.8% to $8.35 3/4.

Rice (Source: CME)
US rice futures halt their steep slide, rallying even as most other markets slumped on economic worries and a stronger dollar. After dropping 16% in less than a month, market was due for a bounce. Poor export demand has loomed over the market. Gains come despite losses of more than 2% in wheat and soybeans. Jan. CBOT rice ends up 24c, or 1.7%, to $14.55.

Serbia's 2011-12 Wheat Crop Up 27% With Record Yields - USDA (Source: CME)
Serbia's 2011-12 wheat crop increased 27% on the year to 2 million metric tons with a record high average yield, the U.S. Department of Agriculture's Belgrade attache said, due to very favorable weather. This good weather resulted not just in excellent wheat yields--which averaged 4.2 tons a hectare--but also in very good baking quality of wheat flour, the USDA said. However, the USDA added that planting of the country's new wheat crop has been hampered by high temperatures and extremely dry land, with the total planted area eventually likely to remain static on previous years, at around 500,000 hectares. Serbia's corn harvest was completed at the start of November, the USDA said, with total production projected at 6.3 million tons, a fall of 15% on previous estimates due to drought that hit the region. The USDA said the country's corn harvest started earlier than usual this year, as record high temperatures last summer meant the crop was ready ahead of schedule.
Problems with low water on the Danube river meant Serbia exported only 30,000 tons of corn in September, the USDA said, while in October it managed to export 153,933 tons as the situation improved. The majority of Serbian corn is exported along the Danube to Cyprus, Italy, Spain and other European Union countries, while some is exported by trucks to neighboring countries such as Montenegro, Croatia, Bosnia and Herzegovina and Albania.

Soybean prices may get a boost from spec shorts: 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 23 (Reuters) - Large speculators turned net short in the soybean market last week for the first time since July of 2010, and in so doing bucked a years-long trend by sharply increasing short positions and shedding long exposure at a point in the year when they typically do the opposite.
But the fact that noncommercial traders have gotten net short just as soybean prices hit one-year lows may actually prove to be supportive for the soybean market going forward, as any year-end position squaring will necessarily now require bouts of buying in the form of short-covering.

Soybeans, corn fall on concern China's growth to slow
KUALA LUMPUR, Nov 23 (Reuters) - U.S. grains futures fell after a preliminary survey showed China's manufacturing dropped to its lowest in almost three years, stirring concern that Europe's sovereign debt crisis is crimping global economic growth.
"Going forward, global headwinds to growth remain," said Prakriti Sofat, a regional economist at Barclays Capital in Singapore.

S.Africa maize stocks fall to 5.101 mln T in October
JOHANNESBURG, Nov 23 (Reuters) - South Africa's maize stocks fell to 5.101 million tonnes at the end of October compared with a revised 6.04 million tonnes at the end of September, data showed on Wednesday.
The stocks included 3.29 million tonnes of white maize and 1.811 million tonnes of yellow, the South African Grain Information Service (SAGIS) said in its monthly bulletin.

Coffee Supply Crunch Spurring Rebound After Folgers Price Cut: Commodities (Source: Bloomberg)
Coffee’s biggest slump in three years may be ending as weather damages crops from Colombia to Indonesia, reducing U.S. inventories to the lowest since 2000 just as Kraft Foods Inc. and J.M. Smucker Co. cut prices. Stockpiles in warehouses monitored by ICE Futures U.S. fell 16 percent since December, declining for a fourth year, exchange data show. Arabica-coffee futures, already poised for the highest annual average price on record, may rise 15 percent to $2.71 a pound by March, according to the average estimate of 13 traders and analysts surveyed by Bloomberg. Prices rallied 7.1 percent from a nine-month low in October as the heaviest rains in two decades damaged Central American plantations, Colombia reported a 19 percent drop in output last month, while exports slowed from Brazil, the world’s top grower. The London-based International Coffee Organization already expects production of arabica, the most-consumed variety, to decline 3.7 percent this year.

Sugar Production to Reach Record in Brazil as Crops Expand (Source: Bloomberg)
Sugar output in Brazil’s Center South, the world’s largest producing region, will jump to a record next year as crops expand and recover from a drought, the head of the country’s largest sugar trading group said. Output will rise to 34 million metric tons next year, Luis Pogetti, chairman of the Copersucar SA trading cooperative that accounts for 10 percent of global sugar exports, said in an interview in Sao Paulo Nov. 21. This year mills in the region produced 30.8 million tons, industry group Unica said Nov. 1. Copersucar is a member of Unica, which will release its first forecast for next year’s crop on Dec. 13. Growers in the Center South, which produces about 90 percent of Brazil’s sugar and ethanol, are renewing and expanding cane crops after freezing weather this year damaged plants that had also been harmed by drought in previous harvests. Brazil, the world’s largest sugar producer, is the source of about 54 percent of global exports of the sweetener, according to the U.S. Department of Agriculture.

ICE sugar, cocoa ease early but hold above lows
LONDON, Nov 23 (Reuters) - ICE sugar, coffee and cocoa futures eased in early trade on Wednesday, weighed by a firmer dollar and widespread losses in other commodity markets linked to deepening global economic woes.   Raw sugar futures were slightly lower, hovering just above the prior session's 5-month lows.  -

India agrees 1 mln tonnes of sugar exports-minister
NEW DELHI, Nov 22 (Reuters) - India has decided to allow one million tonnes of white sugar exports, Trade Minister Anand Sharma said on Tuesday, double initial expectations from the world's second-biggest producer and sending global prices lower. "We have to balance the interest of farmers, consumers and the industry. There was a demand for three million tonnes but we allowed only one million tonnes, keeping in view the interest of all the stakeholders," Food Minister K. V. Thomas told reporters.

Brazil sugar expansion slows, other origins emerge
SAO PAULO, Nov 22 (Reuters) - The expansion of Brazil's world leading sugar sector to meet growing international demand is set to slow and other origins will emerge as suppliers, delegates at an industry conference said on Tuesday.
Farideh Bromfield, head of commodity research at trade house ED&F Man, said at the Datagro conference that Brazil's roller coaster expansion as a sugar exporter was set to decelerate in the face of buoyant global demand.

Brazil cane industry confronts its output limits
SAO PAULO, Nov 22 (Reuters) - Brazil's once booming cane sector is coming to grips with its own limits and curbing unrealistic expectations, after a frustrating harvest and a still unclear investment environment ahead.
After the years of euphoria that ended with the 2008 global financial crisis, the industry is now adopting a more relaxed approach when talking about prospects for sugar and ethanol production over the next few years. Demand forecasts however remain bright.

Thai cane board chief sees minimal damage from floods
SAO PAULO, Nov 22 (Reuters) - Flooding in Thailand will have a minimal impact on the Thai 2011/12 cane crop, Prasert Tapaneeyangkul, secretary general of the Office of the Cane and Sugar Board said on Tuesday.
He estimated that 3,200 hectares of cane area, equivalent to around 200,000 tonnes of cane, were severely damaged by the floods. Thailand is the world's number 2 sugar exporter after Brazil.

Dubai refinery processes less sugar
SAO PAULO, Nov 22 (Reuters) - The Dubai Al Khaleej refinery is expected to refine 1.3 million tonnes of sugar in calendar 2011, down from 1.5 million in 2010, and the order flow is "not so good," its managing director said on Tuesday.
Asked to comment on the order flow of the Dubai refinery, one of the biggest in the world, Jamal Al Ghurair told Reuters, "It's not so good. People are waiting for (white sugar) prices to go down by at least $60-80 (per tonne) before replenishing their stock."

Euro Coal-Prices rise with oil
LONDON, Nov 22 (Reuters) - Prompt physical coal prices rose by around 50 cents a tonne on Tuesday in line with gains in oil and European power prices but trading activity remained thin.
Brent crude rose on Tuesday as efforts to impose stricter sanctions on Iran hiked the geopolitical fear premium and helped offset worries about economic growth and oil demand.

China Oct coal output up 7.3 pct y/y - report
BEIJING, Nov 22 (Reuters) - China produced 330 million tonnes of coal in October, 7.3 percent more than a year earlier, a report posted on the website of a major state power company showed on Tuesday.
Coal output in the first ten months increased 12.2 percent on year to 3.11 billion tonnes, according to the report on the website (www.cgdc.com.cn) of China Guodian Corp, citing data from the China Coal Transportation and Distribution Association.

Italy 2011 coal imports seen up 7 pct
MILAN, Nov 21 (Reuters) - Italy, Europe's third-biggest coal buyer, is expected to raise imports by 7 percent this year, driven by demand from steel makers, a top industry official told Reuters on Monday.
"2011 has been a good year," Andrea Clavarino, chairman of Italy's coal operators body Assocarboni, said in a telephone interview. "We forecast an increase in imports to Italy by about 7 percent."

S.Korea's Oct crude imports rise on strong refining margins
SEOUL, Nov 23 (Reuters) - South Korea's October crude imports rose 8.3 percent from a year ago, biggest gain since July, on robust refining margins while a healthy regional demand for oil products is expected to keep shipments at elevated levels till the end of the year.
But traders cautioned that imports by the world's fifth largest crude buyer could come under pressure early next year as refining margins are weighed down by a grim outlook for the global economy.

Syrian oil output down 2.4 pct Jan-Sept
BEIRUT, Nov 23 (Reuters) - Syria's crude oil production fell 2.4 percent in the first nine months of the year to 103.3 million barrels, or 378,000 barrels per day, according to figures published by state media.
The relatively small decrease in production, despite an eight-month uprising against President Bashar al-Assad, will be little comfort to authorities now struggling to deal with European Union sanctions on Syrian oil which came into effect this month.

Brent oil falls near $108 as U.S., China growth slows
SINGAPORE, Nov 23 (Reuters) - Brent crude fell near $108 as data from the United States and China showed a slowdown in economic growth, stoking fears of weaker demand from the world's two largest oil users.
"The short-term reaction will be negative, but China will probably start monetary easing measures that will be positive for commodities in the medium term," ANZ analyst Natalie Robertson said.

Don't bet on big fall in oil - even with slowdown
LONDON, Nov 22 (Reuters) - With debt crises either side of the Atlantic, Europe flirting with recession and Libyan oilfields returning to production, it is tempting to be bearish on oil.
Tempting but risky.
Despite all the financial and economic gloom, 2011 has been a record year for oil with Brent crude  at its highest-ever average above $110 per barrel, and few analysts forecast a big drop in price, even those who expect an economic slowdown.

Oil Extends Decline After Disappointing German Bond Auction, U.S. Orders (Source: Bloomberg)
Oil dropped for a second day in New York after an unsuccessful bond auction in Germany and falling orders for durable goods in the U.S. stoked speculation that global demand for fuel will falter. Futures slipped as much as 0.6 percent after falling yesterday to the lowest settlement in two weeks. Germany failed to find buyers for 35 percent of bonds at an auction. U.S. orders for goods meant to last at least three years fell in October, the second straight decline. Oil pared losses yesterday after the Energy Department reported inventories fell to a 21- month low. “The German bond issue was a disaster,” said David McAlvany, chief executive officer of McAlvany Financial Group in Durango, Colorado. “The oil inventory numbers are less important than the larger economic picture.”

Indonesia Tin Association to Ask Timah to Stop Shipments to Support Prices (Source: Bloomberg)
The Indonesia Tin Association will ask PT Timah (TINS), the world’s largest exporting company, to stop all shipments to support global prices, said Johan Murod, general secretary of the producer group. Twenty-six companies agreed to keep a spot export ban until the yearend at a meeting yesterday, Murod said in an interview. Timah and PT Koba Tin were not present, he said. Two calls each to the mobile phones of Timah President Director Wachid Usman and Corporate Secretary Abrun Abubakar weren’t answered. “We’ll ask Timah to stop all shipments because if they’re still exporting, even if it’s only to their contracted buyers, the ban won’t be effective in increasing the price,” said Murod.

Iron Ore-Spot prices drop as China buying stalls
SINGAPORE, Nov 23 (Reuters) - Iron ore fell for a second time in three sessions and offer prices dropped further on Wednesday as Chinese steel mills stepped away from the spot market, finding no urgency to buy the raw material amid sluggish steel demand.
Having replenished iron ore inventories over the past three weeks, Chinese steel producers are holding back on more purchases, halting a rally that has lifted spot iron ore prices by 24 percent this month after a 31 percent slump in October.

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.

Baltic index falls again, earning to stay pressured
LONDON, Nov 22 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell for a third session on Tuesday as the pace of cargo demand slowed and world economy worries worsened.
The overall index fell 20 points or 1.07 percent to 1,854 points.

20111124 0947 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures fall to a 13-month low as uncertainty surrounding the global economy encouraged traders to reduce risk exposure. Broad-based asset selling and a rising dollar was at the center of risk-off moves. Otherwise traders took a cautious approach ahead Thanksgiving. CBOT January soy ended down 30 1/2c at $11.22 1/2 a bushel.

Soybean Meal/Oil (Source: CME)
Soy product futures slump in unison with soybeans, joining a broad-based sell-off across asset classes. Worries about the global economy enticed traders into shedding risk, with analysts also worried about potential demand destruction in an economic slowdown, particularly in China, analysts say. CBOT Dec soymeal ended down $9.50 at $282.50/short ton; Dec soyoil dropped 1.46c to 49.32c/lb.

Palm edges down on slowing growth fears
SINGAPORE, Nov 23 (Reuters) - Malaysian palm oil futures dipped as weak manufacturing survey data from China and a downward revision of U.S. GDP figure stoked worries about a slowing global growth.  
"The market was expecting some correction due to the past rise. Technically a correction at this point would be seen as something healthy for the market," said a trader with a foreign commodities brokerage in Kuala Lumpur.  

Golden Agri-Resources Forecasts Higher Palm-Oil Production on Expansion (Source: Bloomberg)
Golden Agri-Resources Ltd. (GGR), the world’s second-largest oil-palm planter, said that output will increase as plantations are expanded in Indonesia and new trees mature, bolstering profitability. “We do expect to plant more areas and therefore have additional production in the coming years,” Executive Director Rafael Buhay Concepcion Jr. said in an interview, without giving a forecast for volumes. “That, complemented by fairly strong prices, should continuously provide us pretty good results.” Rising harvests from Singapore-based Golden Agri may contribute to increased output from Indonesia, the world’s largest producer. The company, which has 17 “buy” calls from analysts among the 21 recommendations tracked by Bloomberg, was looking at acquisitions, Concepcion said, without giving details.
“Definitely there will be growth,” said Concepcion, speaking by phone from Jakarta yesterday. The company produced 1.58 million tons of crude palm oil in the first nine months of 2011, 24 percent more than a year earlier. Production in 2010, totaled 1.85 million tons, down from 1.91 million in 2009.

Palm oil production up 10 pct in 2011 -Sampoerna
JAKARTA, Nov 23 (Reuters) -    Output at palm oil firm Sampoerna Agro  will grow by more than 10 percent this year, versus 289,000 tonnes in 2010 and higher than a previous estimate, an official of the Indonesian firm said on Wednesday.
Favourable weather will boost production, as will investments made on infrastructure such as road improvements and flood defences, Michael Kesuma, head of investor relations, told Reuters.

EU likely to curb Indonesian palm biofuel imports
KUALA LUMPUR, Nov 23 (Reuters) - European Union (EU) governments are likely to curtail their imports of Indonesian palm oil-based biofuel, which has become cheaper due to a tax cut, to protect their own domestic plants, a top analyst said on Wednesday.
"The EU has supported the build of local production capacity that is heavily underutilised and will not be able to survive if foreign competitors to rapeseed biodiesel cannot be kept out of the market," Fredrik Erixon, director of the European Centre for International Political Economy told Reuters.