Friday, December 2, 2011

20111202 1808 FCPO EOD Daily Chart Study.

FCPO closed : 3062, changed : +4 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : turned upward, seller buyer battling.
Support : 3050, 3020, 2970, 2950 level.
Resistance : 3070, 3100, 3150, 3200, 3250 level.
Comment :
FCPO closed recorded marginal gain with improved volume transacted. Overnight soy oil closed recorded small gain and currently trading firmer while crude oil price currently trading higher.
Mixed outlook presented by industry expert during the last day of Indonesia palm oil conference resulted FCPO to trade between gain ans loses.
Daily chart formed a down doji bar candle positioned in between middle and lower Bollinger band after market opened and trade little higher, eased lower recorded loss and climb upwards back into positive zone before ease little lower to close near opening price.
Technical chart still suggesting a side way range bound market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20111202 1748 FKLI EOD Daily Chart Study.

FKLI closed : 1504.5, changed : +10 points, volume : lower.
Bollinger band reading : little upside biased.
MACD Histrogram : rising, buyer taking exposure.
Support : 1500, 1491, 1485, 1477 level.
Resistance : 1505, 1515, 1530, 1540 level.
Comment :
FKLI closed recorded gains with reduced volume changed hand doing 15.5 points premium compare to cash market that also closed higher. Overnight U.S. market closed recorded marginal gain and today Asia markets ended mostly higher while European markets currently trading higher.
Optimistic returned after news on better than forecast U.S. manufacturing data and progress over European debt crisis as market awaits U.s. job data.
Daily chart formed an up bar candle with small lower shadow closed near upper Bollinger band level after market opened lower, surge upward and eased lower back into negative territory followed by side way range bound movement before last minutes climb higher to closed near the high of the day.
Chart reading revised to suggesting a little upside biased market development possibly testing higher resistance level.
When to buy : buy at support or weakness with moderate cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

20111202 1718 Regional Markets EOD Daily Chart Study.

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

20111202 1705 Global Market & Commodities Related News.

Stocks set for weekly gains, eurozone summit looms
HONG KONG, Dec 2 (Reuters) - Asian stocks are poised for their first weekly rise in a month buoyed by coordinated central bank actions, while the euro consolidated its hefty gains ahead of a key European summit next week to tackle the euro-zone crisis.
"We're in consolidation mode but its basically down to the non-farm payrolls today and then back to Europe next week," said Christian Keilland, head of trading at agency brokerage BTIG in Hong Kong.

FOREX-Euro consolidates with focus on US jobs, EU action
TOKYO, Dec 2 (Reuters) - The euro struggled to make much headway on Friday, consolidating this week's gains as traders stuck to the sidelines ahead of a crucial U.S. jobs report and event-packed week that could prove decisive for the currency bloc.
"The move by the central banks simply eased liquidity worries for now. The big-bazooka solutions are coming next week and the euro's strength hinges on their feasibility," said Sumino Kamei, senior currency analyst at the Bank of Tokyo-Mitsubishi UFJ in Tokyo.

Indonesia launches RBD palm olein futures next week
NUSA DUA, Indonesia, Dec 1 (Reuters) - Indonesia Commodity & Derivative Exchange (ICDX) will launch a palm olein futures contract for trading on Dec. 9, its chief executive said on Thursday, as the world's top palm oil producer uses lower export taxes to boost its idle refineries and supplies more products globally.  
Speedy approval given by Indonesia's Commodity Futures Trading Regulatory Agency signals the country's need to play a greater role in setting prices, said Megain Widjaja, Chief Executive Officer of ICDX. 


India palm imports from Indonesia likely to jump-IPOB
NUSA DUA, Indonesia, Dec 1 (Reuters) - Imports of Indonesian palm oil by top buyer India are likely to rise 10 percent each year for the next five years as rising population and wealth boost its purchasing power, the Indonesian Palm Oil Board (IPOB) said on Thursday.  
India, the world's top vegetable oil buyer, will import about 3 million tonnes of crude palm oil from Southeast Asia's largest economy this year, Derom Bangun, vice chairman at the IPOB told Reuters. 


Malaysia palm stock build seen with Indonesia tax changes
NUSA DUA, Indonesia Dec 1 (Reuters) - Palm oil stocks in Malaysia are set to rise if the government does not change policies in response to top supplier Indonesia imposing export tax differentials that favour shipping out refined products, a top analyst said on Thursday.  
James Fry, Chairman of commodities consultancy LMC International, said processed palm oil inventories would grow as the No.2 producer struggles to keep market share with Indonesian exporters getting a price edge in shipping out more refined products. 


Asian palm-based biofuel may struggle in U.S.
NUSA DUA, Indonesia Dec 1 (Reuters) - Indonesian palm-based biodiesel shipments seeking a foothold in the United States will face stiff competition from feedstocks such as corn oil and waste oils, which will become cheaper as more supplies hit the market, a top USDA official said on Thursday.  
Indonesian processors must also first get a clear pathway from the Environmental Protection Agency (EPA) over concerns of higher emissions arising from converting the edible oil, said Michael Dwyer, director of the U.S. Department of Agriculture's global policy analysis division. 


Indonesia palm output at 24.5 mln T in 2012-SMART
NUSA DUA, Indonesia, Dec 1 (Reuters) - Palm oil output in top producer Indonesia will rise as much as 6.5 percent to 24.5 million tonnes next year, while benchmark prices will drift lower until dry weather provides a boost from the second half, palm oil giant SMART  said on Thursday.  
Production in Indonesia, the world's top palm oil producer, is estimated to hit 23 million in 2011, but could rise by between 1.0 million and 1.5 million tonnes next year, Daud Dharsono, president director at Indonesia's PT Sinar Mas Agro Resources & Technology, or SMART  told Reuters.

U.S. wheat rises for 2nd day on exports; soy firm
SINGAPORE, Dec 2 (Reuters) - U.S. wheat rose for a second straight session, gaining 0.5 percent and on track for its biggest weekly rise in more than three months as prospects of strong demand for higher-quality milling wheat propelled the market.
"When you start seeing the quality wheat being affected for 2011/12 season, it is going be bullish as premium quality is in short supply," said Abah Ofon, an analyst with Standard Chartered Bank in Singapore.

China 2011 grain output up 4.5 pct, corn at record -stats bureau
BEIJING, Dec 2 (Reuters) - China's grain output rose 4.5 percent from a year earlier to a record high of 571.21 million tonnes in 2011, with corn output beating expectations, the National Bureau of Statistics said on Friday.
China, the world's second-largest corn consumer, produced a record 191.75 million tonnes of corn in 2011, up 8.2 percent on year. The figure was much larger than expected by the market and analysts at between 180-185 million tonnes.

Indonesia's Sulawesi Nov cocoa beans exports drop 45 pct y/y- industry
JAKARTA, Dec 2 (Reuters) - Indonesia's cocoa bean exports from the main growing island of Sulawesi slumped 44.7 percent to 11,702.34 tonnes in November from 21,172.69 tonnes a year earlier, industry data showed on Friday.
Indonesia is the world's third-largest cocoa producer after the Ivory Coast and Ghana.

Argentina soy sowing swift, weather helps-exchange
BUENOS AIRES, Dec 1 (Reuters) - Argentine farmers made good progress on 2011/12 soybean sowing in the last week, thanks to favorable weather and good soil moisture conditions, the Buenos Aires Grains Exchange said on Thursday.
The South American country is the world's top supplier of soyoil and soymeal and its No. 3 soybean exporter.

Rains may keep Colombia coffee at 8.5 mln bags in 2014
Bogota, Dec 1 (Reuters) - Coffee output in Colombia, the world's top producer of Arabica beans, could be as little as 8.5 million bags in 2014 if rains that have battered the Andean nation persist, Fernando Gast, director of the National Coffee Research Center, said Thursday.
Colombia's weather office expects La Nina-related downpours to continue at least until the end of the first quarter of next year. Rains have been pelting the Andean nation almost without relief since the start of 2010.

Brazil 11/12 soy crop seen stable at 75 mln T--FNP
SAO PAULO, Dec 1 (Reuters) - Brazil's 2011/12 soybean crop, currently being planted, will amount to 75 million tonnes, unchanged from the previous estimate, grain analysts Informa Economics FNP projected on Thursday.
The analysts estimated Brazil's new corn crop at 62 million tonnes.

S.Africa's 2010/11 maize crop down nearly 20 pct
JOHANNESBURG, Dec 1 (Reuters) - South Africa's May 2010-April 2011 maize harvest fell nearly 20 percent from the previous season, in line with market expectations, due to unfavourable weather conditions, the Crop Estimates Committee (CEC) said on Thursday.
South Africa reaped 10.36 million tonnes of maize in the 2010/11 season, compared with the previous year's harvest of 12.815 million tonnes.

Ukraine grain exports double in November - lobby
KIEV, Dec 1 (Reuters) - Ukraine's grain exports jumped to 2.2 million tonnes in November from about 1.0 million in October due to increased demand, the Agrarian Confederation (UAC) grain lobby group said on Thursday.
UAC director Serhiy Stoyanov said in a statement Ukraine had exported about 1.8 million tonnes of maize, 400,000 tonnes of wheat and 16,000 tonnes of barley last month.

German 10th factory test sugar content up on year
HAMBURG, Dec 1 (Reuters) - The tenth factory test on sugar beet delivered to refineries in Germany this season showed sugar content of 17.85 percent compared to 17.22 percent in the same test last season, the association of German sugar producers WVZ said on Thursday.
This was also up from 17.79 percent in the ninth test this year issued on Nov. 24.

Brent rises above $109 on positive U.S. econ data
SINGAPORE, Dec 2 (Reuters) - Brent crude rose above $109 on fresh evidence of a sustained recovery in the United States, the world's top oil consumer, but gains were capped by lingering concerns the euro zone debt crisis could trigger a global recession.    
"Data out of the U.S. has been strong and that has helped support oil prices. The market wants to move higher, but is reluctant to, unless it sees a clear resolution to the euro zone crisis," said Victor Say, a market analyst at Informa Global Markets in Singapore.

China primary aluminium output to rise 12 pct in 2012 -Antaike
ZHUHAI, China, Dec 1 (Reuters) - China faces a surplus of 250,000 tonnes of primary aluminium in 2012 as smelters expand low-cost capacity, a senior analyst at state-backed research firm Antaike said on Thursday.
China's aluminium production may rise 12 percent on the year to 21.95 million tonnes next year, above the 11.3 percent growth rate forecast for 2011 and the year's 19.6 million tonne production, Yao Xizhi told an industry conference in Zhuhai, Guangdong province.

Italy 9-month steel exports up, lag import volumes
MILAN, Dec 1 (Reuters) - Steel exports from Italy, the European Union's second-biggest producer after Germany, rose 12.9 percent year on year to 12.863 million tonnes in the first nine months of 2011, but lagged behind import volumes, industry body Federacciai said.  
Italy's export-focused steel industry has come under increasing pressure from non-EU competitors in the past few years and, facing weak demand of core markets, needs to rethink its product range and consolidate, analysts say.

LME copper steady, eyes first gain in 5 weeks
SINGAPORE, Dec 2 (Reuters) - London copper futures steadied as investors took a breather after big gains earlier in the week that may be sustained if U.S. employment data due later in the day beats expectations.
"A large majority of the market is still short and if the numbers are positive, I think there'll be more short covering," said Nirrav Sharma, marketing manager at Singapore-based trading house G-Steelmet.

Italy 9-month steel exports up, lag import volumes
MILAN, Dec 1 (Reuters) - Steel exports from Italy, the European Union's second-biggest producer after Germany, rose 12.9 percent year on year to 12.863 million tonnes in the first nine months of 2011, but lagged behind import volumes, industry body Federacciai said.  
Italy's export-focused steel industry has come under increasing pressure from non-EU competitors in the past few years and, facing weak demand of core markets, needs to rethink its product range and consolidate, analysts say.

China aluminium market warms to reserve easing move
ZHUHAI, China, Dec 1 (Reuters) - Sentiment is warming in China's aluminium market after industry players interpreted a cut in the amount of money banks must keep as reserves as a sign that local credit could improve in 2012.
Worries over tight credit at home and slower economic growth both in China and overseas had prompted traders at a two-day meeting in the southern province of Guangdong to express caution over demand in the world's top aluminium market next year.  

Gold steady, eyes U.S. jobs data
SINGAPORE, Dec 2 (Reuters) - Spot gold was steady, after the euphoria around a coordinated effort to inject liquidity by central banks faded, as investors await a U.S. employment report for clues on the health of the world's biggest economy.
"The central banks' move reinforced the perception that liquidity crunch is a big problem," said Hou Xinqiang, an analyst at Jinrui Futures, adding that gold's property as a safe haven has been overlooked in recent months and the gloom hanging over the global economy is likely to suppress gold's sentiment.

METALS-LME copper steady, eyes first gain in 5 weeks
SINGAPORE, Dec 2 (Reuters) - London copper futures steadied on Friday as investors took a breather after big gains earlier in the week that may be sustained if U.S. employment data due later in the day beats expectations.
"A large majority of the market is still short and if the numbers are positive, I think there'll be more short covering," said Nirrav Sharma, marketing manager at Singapore-based trading house G-Steelmet.

PRECIOUS-Gold steady, eyes U.S. jobs data
SINGAPORE, Dec 2 (Reuters) - Spot gold was steady on Friday, after the euphoria around a coordinated effort to inject liquidity by central banks faded, as investors await a U.S. employment report for clues on the health of the world's biggest economy.
"The central banks' move reinforced the perception that liquidity crunch is a big problem," said Hou Xinqiang, an analyst at Jinrui Futures, adding that gold's property as a safe haven has been overlooked in recent months and the gloom hanging over the global economy is likely to suppress gold's sentiment.

20111202 1248 Global Market & Commodities Related News.

GLOBAL MARKETS-Stocks pause as caution sets in after dramatic rally
HONG KONG, Dec 2 (Reuters) - Asian stocks paused on Friday, a day after posting their biggest single-day rise in more than two months, as investors cashed in some gains and looked ahead to a key European summit next week for more progress on tackling the euro-zone debt crisis.
"Investors' alarm over the euro-zone debt crisis and the short-term outlook seems to have receded slightly, but without more trading volume it is difficult to see the Nikkei push near 8,700," said Hiroichi Nishi, equity general manager at SMBC Nikko Securities.

Bank of Korea Says It Boosted Gold Holdings in Foreign-Exchange Reserves (Bloomberg)
The Bank of Korea, which controls the world’s eighth-biggest foreign-exchange reserves, boosted gold holdings for the second time this year as investors sought safer assets amid Europe’s debt crisis. The central bank bought 15 metric tons last month, boosting holdings to 54.4 tons, which is equivalent to 0.7 percent of its total reserves, Lee Jung, head of the investment strategy team at the bank’s Reserve Management Group, told reporters in Seoul. Central banks are expanding reserves for the first time in a generation as the precious metal is in the 11th year of a bull market. Purchases of as much as 450 tons in 2011 may be repeated next year as Asian nations and emerging economies diversify their reserves, UBS AG said Nov. 30.

China Stocks Fall on Economic Concern, Head for 4th Weekly Slump (Bloomberg)
China’s stocks (SHCOMP) fell, pushing the benchmark index towards a fourth week of losses, as sliding property prices and the slump in manufacturing added to concern the economic slowdown is deepening. China Shenhua Energy Co. (601088) and Jiangxi Copper Co. (600362) led losses for energy and material producers, the biggest decliners among 10 industry groups in the CSI 300 Index. China Southern Airlines Co. the largest domestic carrier (600029), plunged 4.6 percent after the China Securities Journal said the government raised wholesale jet fuel prices. The Shanghai Composite Index rose 2.3 percent yesterday, as the first cut in lenders’ reserve requirements since 2008 overshadowed a report showing the Purchasing Managers’ Index contracted for the first time in two years.
The Shanghai Composite, which tracks the bigger of China’s stock exchanges, slid 34.34 points, or 1.4 percent, to 2,352.52 at the 11:30 a.m. local-time break. The CSI 300 lost 1.2 percent to 2,552.61. The Bloomberg China-The Bloomberg China-US 55 Index was little changed at 101.09 at the close in New York.

COMMODITIES-Copper, Brent oil lead losses as rally fades
NEW YORK, Dec 1 (Reuters) - Commodities fell broadly
on Thursday as a rally sparked by a global central bank liquidity boost ran out of steam, reverting attention to Europe's slowing growth and sluggish factory activity in China.
"After such a sharp move on what was basically an item out  of the blue, you're always going to get profit-taking," Stephen  Briggs, an analyst at BNP Paribas in London, said on Thursday.

Crude falls on economic woes, US jobs data awaited
NEW  YORK, Dec 1 (Reuters) - Crude oil futures fell on Thursday as investors focused on signs of further economic slowdown in Europe and a weaker factory sector in China rather than strong U.S. manufacturing data and a move by global central banks to stave off a credit crunch.
"We continue to view the crude oil market as navigating between the currently tight physical oil markets and the threat that the European debt crisis could trigger a global economic recession in the near future, which would lead to a sharp drop in oil demand," Goldman Sachs analysts led by David Greely said in a research note.

EU may study oil embargo on Iran; China urges calm
BRUSSELS/TEHRAN, Dec 1 (Reuters) - The European Union tightened sanctions against Iran on Thursday and laid out plans for a possible embargo of its oil in response to mounting Western suspicions that Tehran plans to build nuclear weapons.  
China, the biggest buyer of Iranian crude, stepped in to warn against "emotionally charged actions" that might aggravate the row over the storming of Britain's embassy in Tehran.

Natural gas ends up after unexpected EIA stock draw
NEW YORK, Dec 1 (Reuters) - Front-month U.S. natural gas futures ended higher on Thursday, backed by a government report showing an unexpected drop in domestic gas inventories last week, the first withdrawal of the heating season.
"The (EIA) report was more bullish than expected, and  inventory numbers over the last three weeks have been supportive on a weather-adjusted basis, but I'm still leaning bearish," a Massachusetts-based trader said, noting storage was still near record highs and offered a huge cushion to meet demand even if winter turns out to be extremely cold.

Euro Coal-Prices stable on equities, euro gains
LONDON, Dec 1 (Reuters) - Physical prompt coal prices were little changed on Thursday despite a fall in oil as signs of further economic slowdown in Europe and a weaker factory sector in China outweighed encouraging U.S. manufacturing data.
"We continue to favour the fundamentals for copper, coal and iron ore," Credit Suisse said in its Metals and Mining research note.

20111202 1036 Global Economic Related News.

Global: Lagarde says IMF may get G-20 help to counter Europe crisis
IMF chief Christine Lagarde said Group of 20 nations are prepared to boost the fund’s resources as the European debt crisis threatens the global recovery. “If circumstances require, the G-20 will commit the resources that are necessary for the IMF to play its systemic role,” she said. “That gives you a range that is almost without a cap, without a limitation.” Lagarde has indicated that the USD390bn the IMF currently has available for lending may not suffice should the global outlook worsen. (Bloomberg)

China: November home prices in biggest drop this year
Housing prices in 100 major cities in China dropped on a monthly basis for a third consecutive month in November and posted their biggest m-o-m decline this year, according to the privately compiled China Real Estate Index System. The decline provides further evidence that the government's two-year tightening campaign is cooling the property market amid signals it is now trying to slow the decline and its impact on the rest of the economy. (Bloomberg)

China: Chinese manufacturing activity slows
Chinese manufacturing activity contracted for the first time in almost three years in November, adding to fears about the health of the global economy. Chinese government data released on Thursday showed the official purchasing managers’ index fell to 49.0 in November from 50.4 in October, with a reading below 50 indicating a fall-off in manufacturing. November’s contraction was the first since February 2009. (Bloomberg)

Brazil: Slashes taxes to protect growth from Europe crisis
Brazil suspended a levy on foreign stock purchases as part of USD1.5bn in tax cuts intended to safeguard Latin America’s biggest economy from the spreading European debt crisis. The package of government measures announced targeting 5% growth next year also include a reduction in levies on consumer loans, home appliances, homebuilding and foreign purchases of corporate bonds tied to infrastructure projects. The stimulus measures come a day after the central bank cut the benchmark interest rate for a third consecutive meeting amid signs the world’s sixth-largest economy is stalling. GDP expanded 0.3% in the three months through September, the slowest pace in 10 quarters, the Finance Ministry estimates. (Bloomberg)

US: Pace of manufacturing growth picks up
The pace of growth in the US manufacturing sector in November reached its strongest rate since June, a survey has indicated. The Institute for Supply Management said its index of factory output rose to 52.7 from 50.8 the month before. Its index of new orders also rose from 52.4 to 56.7, its highest level since April. (Bloomberg)

US: Consumer comfort little changed from recession levels
Consumer confidence in the US was little changed last week from levels typically reached during past recessions. The Bloomberg Consumer Comfort Index was minus 50.2 in the period ended 27 Nov, after minus 50.1 the prior week. The gauge has been at minus 50 or worse for 10 of the past 11 weeks. (Bloomberg)

US: Jobless claims climb in holiday week
More Americans than forecast filed applications for unemployment benefits during the holiday-shortened week, signaling limited recovery in the labor market. Jobless claims climbed by 6,000 to 402,000 in the week ended 26 Nov that included the Thanksgiving holiday. The number of people on unemployment benefit rolls and those getting extended payments increased. (Bloomberg)

20111202 1035 Malaysia Corporate Related News.

Tenaga, Petronas and government to share fuel cost increase
Tenaga Nasional (Tenaga) has received a letter from the government that provides a fuel cost sharing mechanism to address the utility’s increased cost due to the gas shortage. In a filing to Bursa Malaysia Securities on Thursday, Tenaga said that the letter provided that Tenaga, Petronas and the government would each equally share the differential cost incurred by Tenaga due to dispatching on alternative fuels and also imports, from 1 Jan, 2010 until 31 Oct, 2011 amounting to approximately RM3.07bn. (Financial Daily)

Daihatsu reiterates rejection of Proton-Perodua merger
Daihatsu Motor Co Ltd of Japan, a key stakeholder of Perusahaan Otomobil Kedua Sdn Bhd (Perodua), is standing firm against the idea of a merger between Perodua and national carmaker Proton Holdings Bhd. “Perodua has given its view on this issue [against a merger with Proton], and we [Daihatsu] respect that. I shall not comment on this further,’ Daihatsu president Koichi Ina told in a press conference. (Financial Daily)

DRB-Hicom issues RM500m debt notes for working capital, projects
DRB-Hicom has issued RM500mn in nominal value of Sukuk in two tranches which would be used for working capital, projects and capital expenditure. The first tranche of the Sukuk, amounting to RM250m in nominal value shall have a tenure of five years maturing on 30 Nov, 2016. The second tranche of the Sukuk, amounting to RM250m in nominal value shall have a tenure of seven years, maturing on 30 Nov, 2018. (Financial daily)

Petronas mulls building third LNG terminal in Lumut
Petroliam Nasional (Petronas) is considering building a third re-gasification plant or liquified natural gas (LNG) terminal in Lumut, Perak, to address the shortage of supply requirement in the power sector and industry users in Peninsular Malaysia. He said the re-gasification plant in Malacca is expected to come onstream by July or August next year, while in Pengerang by 2015. Apart from these, he said Petronas is also constructing an LNG terminal in Lahad Datu, Sabah, which will be connected to the power plant which is jointly built by the group and Tenaga Nasional. (BT)

Star buys free Chinese weekly
In a strategic move to reach out to the Mandarin-speaking community, Star Publications (M) has acquired an 83.61% stake in publisher Red Tomato Media SB for RM1.49m. Red Tomato produces Red Tomato, a 24-page Chinese weekly tabloid distributed free in the Klang Valley and Penang, and featuring economic and lifestyle content. The acquisition expands Star Publications' footprint in the media industry and complements its portfolio of media entities. It is also the group's first venture into the free newspaper model. (StarBiz)

London Biscuits 10.25m placement shares fixed at RM1 each
London Biscuits’s private placement of 10.25m new shares of RM1 each has been fixed at RM1 per share. It said on Thursday the RM1 issue price was about 22% above the five-days volume weighted average market price up to and including 30 Nov of 82 sen per share. The placement shares represented 10% of its paid-up share capital. (Financial Daily)

20111202 1023 Global Market Related News.

Asia Stocks Rise as U.S. Manufacturing Grows (Source: Bloomberg)
Asian stocks (MXAP) rose, as better-than- forecast U.S. manufacturing expansion showed the world’s largest economy is weathering concerns that Europe’s debt crisis will damp global growth. The MSCI Asia Pacific Index rose 0.3 percent to 117.43 as of 9:11 a.m. in Tokyo, headed for a 7.8 percent gain for the week. All 10 industry groups on the measure advanced, with more than three stocks gaining for each that declined.

U.S. Stocks Decline After Three-Day Rally (Source: Bloomberg)
U.S. stocks declined as better-than- forecast manufacturing growth and a rally in French and Spanish bonds were not enough to extend the biggest three-day gain in the Standard & Poor’s 500 Index since March 2009. Financial stocks (S5FINL) fell the most in the S&P 500 among 10 industries, dropping 1 percent, as Massachusetts sued some of the largest lenders over foreclosure practices. Alcoa (AA) Inc. lost 2.1 percent as commodities retreated. Kohl’s Corp. slumped 6.4 percent after November sales missed estimates. Yahoo! Inc. advanced 3.3 percent as a group including Alibaba Group Holding Ltd. was said to prepare a bid for the company.
The S&P 500 slid 0.2 percent to 1,244.58 at 4 p.m. New York time. The index rallied 4.3 percent yesterday as six central banks took action on Europe’s debt crisis by making it cheaper for lenders to borrow in dollars. The Dow Jones Industrial Average decreased 25.65 points, or 0.2 percent, to 12,020.03. Trading volume on U.S. exchanges dropped to about 6.8 billion shares, or 16 percent below the three-month average.

Japanese Stocks Gain for 2nd Day as U.S. Manufacturing Beats Estimates (Source: Bloomberg)
Japanese stocks rose for a second day as better-than-forecast U.S. manufacturing growth outweighed concern over Europe’s debt crisis. The Nikkei 225 Stock Average (NKY) rose 0.2 percent to 8,613.40 as of 9:18 a.m. in Tokyo. The broader Topix lost 0.4 percent to 742.75, with three times as many shares rising as falling.

IMF Says It’s Likely to Cut Global Growth Forecasts Amid Financial Turmoil (Source: Bloomberg)
The International Monetary Fund will probably lower its growth forecasts next month as the European debt crisis rocks financial markets and slows output, a spokesman said. Since the latest forecasts were released in September “there’s been a marked slowdown in economic activity,” particularly in Europe, IMF spokesman Gerry Rice told reporters in Washington today. “We will likely be revising downwards the forecast” near the end of January, he said, without specifying which projections may be affected. The IMF cut its forecast for global growth to 4 percent this year and next in September, predicting “severe” repercussions if Europe failed to contain its debt crisis. The turmoil has since worsened, with Italian and French bond yields rising and Germany failing to attract bids for 35 percent of bonds it offered for sale Nov. 23.

ISM Index of U.S. Manufacturing Increases (Source: Bloomberg)
U.S. manufacturing expanded in November at the fastest pace in five months, buttressing other reports this week that signal the economy is picking up as 2011 comes to an end. The Institute for Supply Management’s factory index increased to 52.7 last month from 50.8 in October, the Tempe, Arizona-based group said today. Readings above 50 indicate expansion, and economists surveyed by Bloomberg News projected a gain to 51.8. Construction spending climbed for a third month in October and jobless claims increased, other data showed. The manufacturing figure was punctuated by gains in orders and production in the same month that consumer confidence rebounded and companies beefed up their payrolls. Corporate purchases of new equipment and stronger holiday spending may help sustain U.S. factories after reports today showed the industry shrank in China and Europe.

U.S. Jobless Claims Unexpectedly Rise (Source: Bloomberg)
More Americans than forecast filed applications for unemployment benefits during the holiday- shortened week, signaling limited recovery in the labor market. Jobless claims climbed by 6,000 to 402,000 in the week ended Nov. 26 that included the Thanksgiving holiday, Labor Department figures showed today in Washington. The median forecast of 43 economists in a Bloomberg News survey called for a drop to 390,000. The number of people on unemployment benefit rolls and those getting extended payments increased. Some companies are still trimming staff and others are reluctant to add workers until demand picks up and there’s more clarity on tax breaks due to expire at year-end. Faster hiring is needed to spur consumer spending, which accounts for about 70 percent of the economy, and reduce a jobless rate stuck near 9 percent that’s a concern for Federal Reserve officials.

UBS’s Harris as No. 1 Forecaster Says Housing Drives Recovery (Source: Bloomberg)
Working his way through a plate of wild Alaskan halibut at a restaurant a couple of blocks from Radio City Music Hall in New York, UBS Securities LLC Chief Economist Maury Harris holds forth in a slight Texas twang on what he expects from the U.S. economy in 2012. It isn’t a story of gloom and doom--although Harris worries that the turmoil in Europe will weigh on growth in the U.S. He sees some unexpected bright spots driving U.S. expansion and preventing a renewed downturn, Bloomberg Markets reports in its January issue. Harris’s predictions matter. His team is No. 1 among economic forecasters for the world’s largest economy during the two-year period ended on Sept. 30, according to data compiled for Bloomberg Markets’ annual ranking.

Treasuries Decline for Sixth Consecutive Day Before U.S. Payrolls Report (Source: Bloomberg)
Treasuries declined for a sixth day before a report that may show U.S. employers added jobs at a faster pace last month, reducing pressure on the Federal Reserve to add further measures to stimulate the economy. The difference between yields on 10-year Treasuries and inflation-indexed securities, a gauge of trader expectations for consumer prices over the life of the debt, widened to 2.11 percentage points yesterday, the most in two weeks, as a report showed manufacturing expanded at the fastest pace in five months in November. James Bullard, president of the St. Louis Fed, said recent economic reports point to stronger economic growth, and policy makers shouldn’t rush to ease further. “The current yield level is still too low given the growth outlook,” said Hiroki Shimazu, an economist in Tokyo at SMBC Nikko Securities Inc., a unit of Japan’s third-largest publicly traded bank by assets. “Yields are likely to rise gradually as we continue to see good numbers in the U.S. economy.”

Manufacturing in U.S. Probably Expanded at a Faster Pace (Source: Bloomberg)
Manufacturing in the U.S. probably grew in November at the fastest pace in five months, showing factories will keep supporting the economic expansion through the end of the year, economists said before a report today. The Institute for Supply Management’s factory index rose to 51.8 last month from 50.8 in October, economists surveyed by Bloomberg News forecast the Tempe, Arizona-based group’s data showed today. Fifty is the dividing line between growth and contraction. Jobless claims fell last week and construction spending increased in October, other data may show. Corporate investment on new equipment, export demand, stronger consumer purchases during the holidays and leaner inventories lay the groundwork for a pickup in production. At the same time, risk of recession in Europe may restrain U.S. manufacturing, the industry that spurred the recovery.

Dollar Proves Best Bet for Investors (Source: Bloomberg)
The dollar (DXY) was the best place for investors to be in November, beating returns on worldwide bonds, commodities and stocks as Europe’s debt crisis threatened to derail global growth. The Dollar Index tracking the U.S. currency against six foreign-exchange peers rose 2.9 percent last month, leaving it down less than 1 percent for the year. Even as Treasuries gained 0.7 percent, fixed-income securities around the world lost 0.5 percent, Bank of America Merrill Lynch index data show. The Standard & Poor’s GSCI Total Return Index of commodities rose 1.4 percent, and the MSCI All Country World Index (MXWD) of shares fell 2.9 percent with dividends.
“There’s been a flight to quality, which means investors are keeping their money in U.S. dollars and Treasuries,” said Sean Callow, a Sydney-based senior currency strategist at Westpac Banking Corp., the second-most-accurate foreign-exchange forecaster measured by Bloomberg News. “The U.S. hasn’t been a bad bet, whether you’re on the safe-haven side or you see signs of life in the economy,” he said in a phone interview Nov. 29.

Dollar, Yen Poised for Weekly Declines on Signs of U.S. Economic Recovery (Source: Bloomberg)
The dollar and the yen were set for their biggest weekly declines against the euro in more than a month as signs the U.S. economy is picking up damped demand for haven currencies. The yen was 0.3 percent from a two-week low versus Europe’s common currency ahead of a U.S. report today forecast to show the pace of hiring quickened last month. The dollar was poised to weaken against 15 of its 16 major peers this week before Federal Reserve Bank of Philadelphia President Charles Plosser and Fed Bank of Dallas President Richard Fisher speak today. Gains in the euro were limited before German Chancellor Angela Merkel outlines her stance for a Dec. 9 European summit. “We’re actually seeing the U.S. economy being one of the few bright spots out there,” said Robert Rennie, Sydney-based chief currency strategist at Westpac Banking Corp., Australia’s second-largest lender. “Better U.S. data is in the short term a modest negative for the U.S. dollar.”

Consumer Comfort in U.S. Little Changed From Recession Levels (Source: Bloomberg)
Consumer confidence in the U.S. was little changed last week from levels typically reached during past recessions. The Bloomberg Consumer Comfort Index was minus 50.2 in the period ended Nov. 27, after minus 50.1 the prior week. The gauge has been at minus 50 or worse for 10 of the past 11 weeks. The lack of improvement underscores concern over unemployment hovering around 9 percent, wrangling by lawmakers over reducing the budget deficit, and the European debt crisis. Americans’ dim views prompted retailers to resort to price-cuts and earlier hours to boost sales in the week of the Thanksgiving holiday, the unofficial start of the shopping season. “Consumer spirits remain depressed amid elevated unemployment and tumultuous global economic conditions,” said Richard Yamarone, a senior economist at Bloomberg LP in New York. “In this environment, the only spending that seems to take place is during deep discounts, heavy couponing, or widespread sales.”

Goldman Joins HSBC Bucking China Economist Majority With ’12 Rate-Cut Call (Source: Bloomberg)
Goldman Sachs Group Inc. and HSBC Holdings Plc forecast that China will cut interest rates in 2012, putting the banks at odds with most of their rivals, who see elevated inflation preventing a reduction. The People’s Bank of China reduced lenders’ reserve requirements on Nov. 30 for the first time since 2008 as Europe’s debt crisis deepened. Eleven economists of 19 in a Bloomberg News survey conducted yesterday say rates will stay unchanged through next year and another three predict increases. Goldman and HSBC are among five that see cuts. China’s challenge in loosening monetary policy is to sustain the expansion of the world’s second-largest economy without spurring price gains, fueling bad loans or reigniting a real estate boom that has started to deflate. Inflation will remain too high for the benchmark one-year deposit rate to be lowered from the current 3.5 percent, according to Mizuho Securities Asia Ltd.

India's exports rise 10.8 pct in October - govt
NEW DELHI, Dec 1 (Reuters) - India's October exports  rose an annual at $19.6 billion. Oil imports for the month grew 21 10.8 percent to $19.9 billion, while imports  for the month rose 21.7 percent to $39.5 billion, the government said in a statement on Thursday.
India's trade deficit  in October was percent to $10.1 billion, the statement released by the trade ministry said.

Merkel Shuns ECB Role in Favor of Budget Limits (Source: Bloomberg)
Germany and France are pushing for closer economic ties among euro nations and tougher enforcement of budget rules to counter the debt crisis, snubbing investor pleas to back an expanded European Central Bank role. German Chancellor Angela Merkel, who will use a speech to lawmakers in Berlin today to outline her stance before a Dec. 9 European Union summit, has repeated her push to rework EU rules to lock in budget monitoring and seal off the ECB from political pressure. French President Nicolas Sarkozy late yesterday called for “more discipline” and automatic penalties for nations that break fiscal rules.
Merkel’s refusal to deploy the ECB is a rebuff to President Barack Obama after he exhorted Europe’s leaders to take more action to combat the crisis. The chancellor is loath to agree to follow the Federal Reserve and the Bank of England in policies she views as akin to fighting debt with more debt. Enlisting the ECB in battling the crisis would violate the central bank’s independence and set it on a course of action that might not work, destroying its credibility.

Spanish, French Bonds Climb After Auctions (Source: Bloomberg)
U.S. stocks retreated as data showing improving manufacturing growth was not enough to extend the best three-day rally since 2009 for the Standard & Poor’s 500 Index. Spanish and French bonds rallied as successful debt auctions tempered concern about Europe’s sovereign crisis. The S&P 500 (SPXL1) slipped 0.2 percent to close at 1,244.58 at 4 p.m. in New York following a 4.3 percent jump yesterday when six central banks took coordinate action to ease funding strains stemming from turmoil in European bond markets. The yield on France’s 10-year note dropped 29 basis points, the most since 1991, to 3.11 percent. Spain’s five-year yield tumbled 57 basis points to 5.29 percent. The euro was up 0.1 percent at $1.3461, paring an earlier 0.6 percent advance.
A report showing U.S. manufacturing expanded at the fastest pace in five months and forecasts that data tomorrow will reveal a pickup in job growth failed to extend a three-day, 7.6 percent rally in the S&P 500. (SPX) A contraction in China’s manufacturing fueled concern Europe’s debt crisis is damaging the global economy as yesterday’s moves by central banks were viewed as only a temporary fix.

Lagarde: G-20 May Boost IMF for Europe Crisis (Source: Bloomberg)
International Monetary Fund chief Christine Lagarde said Group of 20 nations are prepared to boost the fund’s resources as the European debt crisis threatens the global recovery. “If circumstances require, the G-20 will commit the resources that are necessary for the IMF to play its systemic role,” she said during a joint press conference with Brazilian Finance Minister Guido Mantega in Brasilia today. “That gives you a range that is almost without a cap, without a limitation.”
Lagarde has indicated that the $390 billion the IMF currently has available for lending may not suffice should the global outlook worsen. The Washington-based lender to nations will probably cut its global growth forecast next month as the European crisis roils financial markets and slows output, spokesman Gerry Rice said.

Draghi Signals ECB May Step Up Debt Measures If EU Considers Fiscal Union (Source: Bloomberg)
European Central Bank President Mario Draghi signaled the ECB could do more to fight the debt crisis as long as governments push the euro area toward a fiscal union. “A new fiscal compact” is “definitely the most important element to start restoring credibility,” Draghi said in an address to the European Parliament in Brussels today. “Other elements might follow, but the sequencing matters. It is first and foremost important to get a commonly shared fiscal compact right.” Draghi didn’t specify what more the ECB could do and said the central bank’s bond purchases “can only be limited.” Still, he “appeared implicitly to hold up the offer of a significantly higher pace of debt purchases” and “potentially other measures, provided that euro-area governments were to commit to a new fiscal pact,” said Julian Callow, chief European economist at Barclays Capital in London.

Brazil Slashes Taxes to Protect 5% Growth From Spreading European Crisis (Source: Bloomberg)
Brazil suspended a levy on foreign stock (IBOV) purchases as part of 2.8 billion reais ($1.5 billion) in tax cuts intended to safeguard Latin America’s biggest economy from the spreading European debt crisis. The package of government measures announced today targeting 5 percent growth next year also include a reduction in levies on consumer loans, home appliances, homebuilding and foreign purchases of corporate bonds tied to infrastructure projects. Brazilian stocks rallied and the real strengthened. The stimulus measures come a day after the central bank cut the benchmark interest rate for a third consecutive meeting amid signs the world’s sixth-largest economy is stalling. Gross domestic product expanded 0.3 percent in the three months through September, the slowest pace in 10 quarters, the Finance Ministry estimates.

20111202 1022 Global Commodities Related News.

Grain bulls: Don't fall for central bank trap: 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. --
By Gavin Maguire
CHICAGO, Nov 30 (Reuters) - The overnight central bank action to alleviate financial sector stress may have served to kick-start a fresh rally across stocks and commodities, but traders should be wary of getting caught in a bull trap in grains and oilseeds as the recent outflow of trader funds in those markets suggests participants are dialing down their interest in the arena for now.
Further, given the recent elevation in short-sided interest in the major crop markets, any near-term price strength is just as likely to be driven by short covering as by fresh buying, and so should not be interpreted as a purely bullish market development.

Corn (Source: CME)
US corn futures end lower, fueled by sluggish export demand and the absence of an outside catalyst to attract buyers. The market faces pressure from traders trying figure out if USDA export forecast is low enough, says Dan Cekander, analyst with Newedge in Chicago. Poor sales in recent weeks stoke fears that government forecasts will lower demand forecasts next week and show corn carryout is less threatening, he adds. Light profit taking on recent gains aided the declines. CBOT March corn ended down 6 1/2c at $6.01 1/2/bushel.

Wheat (Source: CME)
US wheat futures end higher, avoiding the price pressure that consumed grain and oilseed futures. Stability in external markets allowed traders to focus on wheat-specific fundamentals. High-protein US spring wheat remains in tight supply and commands a strong price premium, says Sterling Smith at Country Hedging. He added that MGEX wheat is seen as a bargain at current levels amid oversold conditions, concerns about Australia's wheat crop and decent weekly exports. MGEX March wheat ended up 8 3/4c at $8.32 1/4 a bushel as CBOT March rose 1/4c to $6.14 1/4 and March KCBT climbed 8c to $6.69.

Rice (Source: CME)
US rice futures close lower as profit-taking following Wednesday's sharp gains weighed on prices. Lagging demand appears to be limiting buying as well, with cash-basis levels remaining very wide even with the move lower due to the lack of overall demand. CBOT January rice ends down 6c at $14.77 1/2 per hundredweight.

Wheat climbs 1.4 pct on short-covering, liquidity move
SINGAPORE, Dec 1 (Reuters) - U.S. wheat jumped 1.4 percent, while soybeans and corn rose for a fourth straight session, supported by the world's major central banks' move to tame a liquidity crunch for European banks by providing cheaper dollar funding.
"It is perhaps some more short-covering by funds which are very short in wheat and today is the first day of the month," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne. "Corn and soy are trying to catch up while wheat is certainly the leader."

Bumper EU maize crop to cut import needs
HAMBURG, Nov 30 (Reuters) - The European Union is expected to have harvested much more maize (corn) this year, which will greatly reduce EU maize import requirements in coming months, analysts said on Wednesday.
"The signs are the EU has gathered an excellent maize crop with dry weather in parts of Europe in past weeks helping harvest work," said Claus Keller, grains analyst at German commodity analysts FO Licht.

Russia could harvest 97 mln T grain in '12-SovEcon
MOSCOW, Nov 30 (Reuters) - Russia could harvest around 97 million tonnes of grain next year, equivalent to the 2009 crop which was one of post-Soviet Russia's largest, a leading Russian analyst said on Wednesday.
The forecast was based on a winter grain harvest forecast of 45.5 million tonnes -- including 39.5 million tonnes of winter wheat -- as well as prevailing weather and multi-year averages.

Russia closing 11/12 wheat stocks seen at 10 mln T
MOSCOW, Nov 30 (Reuters) - Months of record grain exports have sapped Russia's wheat stocks, which are likely to end the 2011/12 crop year at 10 million tonnes, lower than the 11.7 million tonnes the previous year when a third of the crop was destroyed by drought.  
"The wheat balance is fragile," Sovecon President and CEO Andrei Sizov Sr. told a conference of grain growers, traders and corporate analysts. "Stocks in the south and centre have been decimated."

Russia Could Harvest 95-100M Tons Grain Next Year - SovEcon (Source: CME)
Russia could harvest between 95 and 100 million metric tons of grain next year, similar to levels reaped during 2008, one of the country's largest harvest on record, Andrey Sizov Sr., senior economist and CEO of analysis body SovEcon said. The forecast, part of an early 2012 winter grain harvest projection, included 45.5 million tons of winter grains, of which 39.5 million tons is winter wheat, SovEcon's Sizov Sr. said. "The healthy projection forecast is a result of an increase in acreage and improved winter planting conditions," Sizov Sr. said. This year, Russia is expected to harvest 92 million tons of grain, of which 34.7 million tons is winter wheat. In 2008, Russia harvested a total of 108 million tons of grain. Sizov Sr. said market concerns that winter sowings in the south of the country would not develop properly remain "premature to judge just yet and there was no evidence the plantings would die necessarily."
SovEcon predicts for the 2011-12 crop year, that total grain and wheat exports will total 24.5 million tons and 19 million tons respectively. A flood of cheap wheat from the Black Sea region has recently kept a lid on European futures markets, a trend analysts say is likely to continue for the remainder of the 2011-12 crop year. Cheaper wheat supplies from countries such as Russia has made it harder for European wheat suppliers to maintain competitiveness with countries to which it traditionally exports. Andrey Sizov Jr., managing director of SovEcon, said an influx of cheap wheat from Argentina has also pressured European wheat prices. Argentine wheat--of which around 7.5 million tons, or 58% of the country's total production is exported--has been in strong demand.

Saudi-Ukraine Grains Deal Comes Amid Supply Fears - APK (Source: CME)
Saudi Arabia's new grain import agreement with Ukraine has come as its imports of barley from the European country are likely to halve this year, analysis body APK-Inform said. "Saudi Arabia is definitely worried about barley supplies for the current year and even further out, after the Ukrainian government imposed export duties earlier this year," Svetlana Synkovska, marketing manager at APK, told Dow Jones Newswires. Saudi Arabia, the Arab world's largest economy, is likely to import 2 million metric tons of Ukrainian barley in the 2011-12 crop year, compared with 3.9 million tons a year earlier. Synkovsa said that Ukraine would export a total of 2.7 million metric tons of barley this crop year, making Saudi Arabia as its major customer. The Ukrainian government imposed export duties on grain July 1 as a result of last year's drought. In October, Ukraine's President Viktor Yanukovich abolished the export tax for wheat and corn but the barley export duty of 14% still remains intact.
The duty is paid by Saudi  Arabia, making its grain purchases more expensive. A few days ago, Saudi Arabia reached an agreement with Ukraine to import grains, mainly barley, the kingdom's Finance Ministry said, giving few details. "The agreement highlights that Saudi Arabia is worried the country will have a shortfall in barley supplies, especially if the export duties aren't lifted for the next season," APK's Synkovska said. Ukraine exported 6.808 million tons of grain between July 1, the beginning of the current marketing year, and Nov. 28, which is 1.68 million tons more than in the corresponding period last year, its Agriculture Ministry said. The total included 2.14 million tons of wheat, including 1.155 million tons of milling wheat and 0.985 million tons feed wheat, 1.836 million tons of barley and 2.756 million tons of corn. Ukraine is likely to export 27 million metric tons of grain in the 2011-2012 marketing year, compared with 12.1 million tons a year earlier.

Colombia coffee growers see long-term weather issues
BOGOTA, Nov 30 (Reuters) - Colombian coffee growers must be ready to face more frequent bad weather in the long-term while a tree renovation program should guarantee production at historical averages, the coffee federation said on Wednesday.
The world's top producer of high-quality Arabica faces a third consecutive year of lower-than-expected coffee production in 2011 as bad weather, fungus and a tree renovation program keep output below historic averages of 11 million 60-kg bags.

Cuba aims to boost sugar yields - minister
LONDON, Nov 30 (Reuters) - Cuba aims to boost sugar production yields by 15-20 percent a year by 2016, exceeding 45 tonnes per hectare of cane, Cuban Vice-Minister for Sugar Lourdes Castellanos Jimenez said on Wednesday.
She told the annual International Sugar Organization (ISO) seminar that Cuba aimed to boost sugar production to around 2.5 million tonnes by 2016.

Global sugar refining capacity rising -Al Khaleej
LONDON, Nov 30 (Reuters) - Global sugar refining capacity is set to rise in the next few years, more than doubling between 2008-13, and the white sugar should have no difficulty finding buyers, a senior refinery official said on Wednesday.
Abhishek Nanda, manager, trading with Al Khaleej Sugar in Dubai, told the annual International Sugar Organization (ISO) seminar that global toll/destination refining capacity was set to rise by 3.8 million tonnes to 18.3 million tonnes a year in 2013.

Brazil centre-south cane crop below 500 mln T -Bunge
LONDON, Nov 30 (Reuters) - Sugarcane production in the centre-south of top producer Brazil is expected to stand at below 500 million tonnes in 2011/12, Rob Coviello, head of global sugar trading at Bunge Ltd in the United States, said on Wednesday.
"I would say we follow what's in the market consensus -- under the 500 million tonnes," he told Reuters on the sidelines of the annual International Sugar Organization (ISO) seminar.

India coffee exports down 10 pct in Oct-Nov
MUMBAI, Dec 1 (Reuters) - Coffee exports from India fell 10.2 percent to 38,598 tonnes in the first two months of the coffee year, the state-run Coffee Board said in a statement on Thursday.
In value terms, exports were at $116.27 million from October to November, up from $100.38 million from the same period last year.

US ethanol output up 1.4 pct, most in nearly a year
Nov 30 (Reuters) - U.S. ethanol production rose 1.4 percent last week to the highest in nearly a year, while stocks fell more than 2 percent,  the Energy Information Administration reported on Wednesday.
U.S. ethanol production totaled 930,000 barrels per day in the seven days to Nov. 25, up 13,000 bpd from the previous week. Output was last that strong when it hit 937,000 bpd for the week ended Dec. 10, 2010.

S.Korea Nov crude imports down 5.8 pct y/y -prelim data
SEOUL, Dec 1 (Reuters) - South Korea's crude oil imports in November fell 5.8 percent from a year earlier, tentative customs figures released by the economy ministry on Thursday showed.
Final import figures will be available later in the month from state-run Korea National Oil Corp (KNOC).

Qatar keeps Jan crude supply to Asia steady -source
TOKYO, Dec 1 (Reuters) - Qatar, one of OPEC's smallest producers, has notified at least one Asian buyer that it will supply Marine and Land crude at full contracted volumes for January, unchanged from December, a trading source familiar with the matter said on Thursday.    
Qatar has been supplying both grades to customers at full contracted volumes since August 2009.

Oil Heads for Weekly Gain to $100 As Iran Tension Counters Demand Concern (Source: Bloomberg)
Oil headed for its first weekly gain in three as the clash between Iran and the West heightened speculation Middle East supply may be at risk, countering concern demand may falter in the U.S., China and Europe. Futures were little changed near $100 a barrel, heading for a 3.3 percent gain this week. The U.K. ordered Iran, the second- biggest oil producer in the Organization of Petroleum Exporting Countries, to close its embassy in London yesterday after a mob attack on the British Embassy in Tehran that bought international condemnation. Prices still fell for the first time in five days after U.S. jobless claims rose and manufacturing in Europe and China shrank. Crude oil for January delivery was at $99.97 a barrel, down 23 cents, or 0.2 percent, in electronic trading on the New York Mercantile Exchange at 8:08 a.m. in Tokyo today. It earlier declined as much as 31 cents to $99.89 a barrel. Futures rose 7.7 percent in November.

Iraq oil exports rise in Nov. to 2.135 mln bpd - SOMO
BAGHDAD, Dec 1 (Reuters) - Iraq's oil exports averaged 2.135 million barrels per day in November compared with 2.088 million bpd in October, Falah Alamri, head of the State Oil Marketing Organisation (SOMO), said on Thursday.  
Iraq exported 1.712 million bpd from the southern oil hub of Basra and 423,000 bpd from the northern oilfields around Kirkuk, including 10,000 bpd shipped by trucks to Jordan, he said.

Copper Traders Turn Bullish For the First Time Since October: Commodities (Source: Bloomberg)
Copper traders are bullish for the first time in six weeks on signs that demand is still expanding as global inventories decline to an 11-month low and central banks cut funding costs to shore up growth. Twelve of 24 surveyed by Bloomberg expect the metal to advance next week and two were neutral. The last time they were bullish overall, in the week ended Oct. 21, prices surged more than 14 percent in the following five days. Global stockpiles monitored by exchanges in London, New York and Shanghai fell 23 percent since March, data compiled by Bloomberg show. Copper rallied the most in a month on Nov. 30 as China, the biggest consumer of the metal, cut the reserve requirement ratio for banks for the first time since 2008. More than $1.2 trillion was added to value of global equities that day as the central banks of the U.S., the euro region, Canada, the U.K., Japan and Switzerland agreed to cut the cost of providing dollar funding, to ease strains from Europe’s debt crisis.

Gold Futures Advance 0.5% to $1,748.90 an Ounce, Silver for March Gains (Source: Bloomberg)
Gold for February delivery in New York rose 0.5 percent to $1,748.90 an ounce at 10:10 a.m. in Melbourne. Silver for March delivery advanced 0.3 percent to $32.87 an ounce, while gold for immediate delivery traded little changed at $1,745.43 an ounce.

20111202 1021 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures end lower, ending a three day recovery from prior declines. Concerns about soybean export demand in the face of favorable South American crop prospects and ongoing competition from Brazil in export markets, analysts say. Soybeans attempted to rally, but once support from equities and crude oil faded, traders focused on demand fundamentals, an area that is clouded by prospects from South American output and exports, analysts add. CBOT Jan soy ended down 3 1/4c at $11.28/bushel.

Soybean Meal/Oil (Source: CME)
Soy product futures end mixed, with traders buying soyoil at the expense of soymeal on spreads the dominant feature in the market. Analysts are encouraged about soyoil amid solid world vegoil demand, and its prospects for biodiesel as crude oil tops $100 a barrel, analysts say. CBOT Jan soyoil ended up 0.20c at 49.70 cents/lb, and Jan soymeal dropped $3.20 to $289.00/short ton.

VEGOILS-Palm oil rises on global economy outlook
SINGAPORE, Dec 1 (Reuters) - Malaysian palm oil futures rose, supported by an improved global economic outlook and a market correction after recording straight losses for more than five days.  
"The market is higher today tracking Dalian and CBOT. Signs that the European debt issue is stabilising also helped," said a trader with a foreign commodities brokerage in Kuala Lumpur.

Argentine soy crop seen at 52 mln T - industry
BUENOS AIRES, Nov 30 (Reuters) - Argentina's 2011/12 soy crop should reach 52 million tonnes, the head of the Acsoja industry group said on Wednesday, matching the latest forecast by the U.S. Department of Agriculture (USDA).  
Argentina is the world's third-biggest soy exporter and the top provider of soyoil and soymeal. The country's farmers have planted more than half of this season's estimated planting area and moist soils have aided their progress  .

Asian palm-based biofuel may struggle in U.S.
NUSA DUA, Indonesia Dec 1 (Reuters) - Indonesian palm-based biodiesel shipments seeking a foothold in the United States will face stiff competition from feedstocks such as corn oil and waste oils, which will become cheaper as more supplies hit the market, a top USDA official said on Thursday.
Indonesian processors must also first get a clear pathway from the Environmental Protection Agency (EPA) over concerns of higher emissions arising from converting the edible oil, said Michael Dwyer, director of the U.S. Department of Agriculture's global policy analysis division.

Indonesia palm output at 24.5 mln T in 2012-SMART
NUSA DUA, Indonesia, Dec 1 (Reuters) - Palm oil output in top producer Indonesia will rise as much as 6.5 percent to 24.5 million tonnes next year, while benchmark prices will drift lower until dry weather provides a boost from the second half, palm oil giant SMART  said on Thursday.
Production in Indonesia, the world's top palm oil producer, is estimated to hit 23 million in 2011, but could rise by between 1.0 million and 1.5 million tonnes next year, Daud Dharsono, president director at Indonesia's PT Sinar Mas Agro Resources & Technology, or SMART  told Reuters.

Dutch unhappy with Indonesia palm tax move
NUSA DUA, Indonesia Nov 30 (Reuters) - Palm oil plants in Europe will suffer from Indonesia's cut in export taxes in favour of refined palm oil over the crude grade, which will cut supplies of the crude feedstock, a top industry official told Reuters on Wednesday.
Frans Claassen, General Manager of the Dutch Product Board of Margarine, Fats and Oils (MVO) said the industry body had asked its government to bring up the issue with Jakarta this week at a bilateral meeting on the Indonesian island of Lombok.