Wednesday, December 7, 2011

20111207 1815 FCPO EOD Daily Chart Study.

FCPO closed : 3119, changed : +34 points, volume : lower.
Bollinger band reading : little upside biased.
MACD Histrogram : recovering, buyer testing market.
Support : 3100, 3070, 3050, 3020 level.
Resistance : 3150, 3200, 3250, 3270 level.
Comment :
FCPO closed recorded gain with decreasing volume traded. Overnight soy oil closed recorded marginal loss and currently trading between gain and losses while crude oil price trading higher.
FCPO price traded higher on lower stock and production level speculation which is reinforced by Reuters survey that shows lower exports, output and stock level with better imports.
Daily chart formed a small body up doji bar candle closed nearer to middle Bollinger band level after market opened higher and edge upward gradually to closed near the high of the day.
Technical reading remained suggesting a little upside biased market development testing resistance near middle Bollinger band 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.

20111207 1719 FKLI EOD Daily Chart Study.

FKLI closed : 1484.5, changed : +9.5 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : weakening, buyer seller battling.
Support : 1477, 1470, 1458, 1445 level.
Resistance : 1485, 1491, 1500, 1505 level.
Comment :
FKLI closed recorded gain with better but relatively low volume exchanged doing 1.5 point premium compare to cash market that closed slightly higher. Overnight U.S. market closed recorded small gain and today Asia markets ended in positive zone while European markets currently trading higher.
Global market traded higher on hope of European leader will agree on a bigger bailout package ahead of this week submit.
Daily chart formed an up doji bar candle closed in between middle and upper Bollinger band level after market opened higher, trade side way range bound until 3pm followed by downwards movement tested intraday low and recovered higher tested intrade higher and eased little lower to closed near opening price.
Chart reading remained suggesting a side day 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 resistance or strength with quick cut loss and profit target.

20111207 1708 Regional Markets EOD Daily Chart Study.

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

20111207 1632 Renewable Energy Related News.

WARSAW, Dec 6 (Reuters) - Poland's largest utility PGE  is eyeing takeovers of wind farm projects in the North Sea and is in the process of picking an
advisor on acquisitions, two independent market sources told Reuters on Tuesday.
"It concerns projects (around the North Sea coasts of) Great Britain and Germany with a joint value of around 200 million euros ($269.4 million)," one of the
sources familiar with the matter said.

PARIS, Dec 6 (Reuters) - China will install wind and solar power capacity equivalent to 180 nuclear power reactors in the next 10 years to meet its growing
energy needs, the International Energy Agency said on Monday, citing its latest estimate.    
Fatih Birol, chief economist at the IEA, also told Reuters that one in two of all hybrid cars or cars powered with natural gas or electricity will be sold in
China in the next 20 years, even without a binding climate agreement.

COPENHAGEN, Dec 6 (Reuters) - Denmark's Vestas , the world's biggest maker of wind turbines, said late on Monday it had won a 168 megawatts turbine order for
a project in Australia.
Vestas Wind Systems A/S said in a statement the order is for 56 units of its V90-3.0 megawatt turbine for the Musselroe Wind Farm project to be constructed
in Tasmania.

LOS ANGELES , Dec 5 (Reuters) - Thin film solar company Miasole is seeking a partner to help support its growth plan, but plans to remain a standalone
company for now, its new chief executive said on Monday.
With less than a week on the job, former First Solar Inc  executive John Carrington said Miasole is among the solar companies being looked at by large
strategic investors.

LONDON, Dec 5 (Reuters) - Energy specialist private equity firm First Reserve and Spanish group Renovalia Energy have created a new joint venture for
investing in wind farm projects in Europe and North America, the companies said on Monday.
First Reserve is to put $150 million of equity into the joint venture, Renovalia Reserve. When matched by Renovalia and leveraged, the venture could have
about $1 billion to spend on renewable energy projects, a person familiar with the situation said.

SHANGHAI, Dec 4 (Reuters) - China said it was "deeply concerned" about a preliminary ruling by a U.S. trade body that trade practices by Chinese solar makers
are hurting U.S. producers and said the decision underscored a U.S. "inclination to trade protectionism".
Such protectionism measures would hurt bilateral trade and jeopardise mutual cooperation on new energy issues, the Commerce Ministry said in a statement on
its website.

Dec 2 (Reuters) - Peruvian NGOs and indigenous groups said on Friday they would continue fighting proposed dams in the Amazon despite growing signs the
projects will be delayed or perhaps never built.
The former presidents of Peru and Brazil signed a 50-year bilateral energy agreement in June of 2010 requiring Peru to produce up to 72,00 megawatts of
hydropower, much of it to be exported to neighboring economic giant Brazil.

Dec 1 (Reuters) - Canadian energy companies Nalcor Energy and Emera Inc  agreed to extend the Nov. 30 deadline to finalize their agreement to partner on the
giant C$6.2 billion Muskrat Falls hydro power project in Labrador.
The companies said this week they would extend the deadline until Jan. 31, 2012.  

Nov 30 (Reuters) - National Solar Power said it will spend $700 million to     develop a 200-megawatt solar farm in Florida's Hardee County, making it the
company's second project in the state that has one of the highest per-capita electricity demand in the country.
The utility-scale solar power provider plans to build 10 200-acre farms, each costing $70 million. Its first Florida project is in the Gadsden County.

YAOUNDE, Nov 30 (Reuters) - Kenya Electricity Generating Company (KenGen) , the country's main power producer, has raised $920 million in loans for a 280
megawatt (MW) geothermal project, the company's managing director said on Wednesday.
"We have just accessed some $920 million concessionary funding for a 280 MW geothermal project," Edward Njoroge told reporters at a regional energy
conference in Yaounde, Cameroon.

Nov 30 (Reuters) - Solar power developer SolarCity and Bank of America Merrill Lynch  will go ahead with a plan to build more than $1 billion in new solar
projects on military housing, despite their failure to win a U.S. loan guarantee.
The project, named "SolarStrong," aims to put about 300 megawatts of solar generation on 120,000 military housing units over five years.

20111207 1631 Biofuel Related News.

LONDON, Dec 7 (Reuters) - Britain should aim for a 10-percent share of bioenergy in total energy demand in 2050 to achieve its long-term climate target, but
any more could do more harm than good to the environment, a government adviser said on Wednesday.
The Conservative-led coalition government will unveil its strategy for bioenergy early next year, as part of a wider plan to cut carbon emissions by 80
percent by mid-century.

WASHINGTON, Dec 5 (Reuters) - The U.S. military, in the largest ever government purchase of biofuel, bought a batch of fuel made from chicken fat and algae
that will be burned by the Navy in war games next year, officials said on Monday.
The Defense Logistics Agency purchased 450,000 gallons of fuel from Dynamic Fuels LLC, a Louisiana-based venture owned by Tyson Foods Inc  and Syntroleum
Corp, which makes biofuel from used cooking oil, and from California-based Solazyme Inc , which makes fuel from algae.

CHICAGO, Dec 2 (Reuters) - The boom times for U.S. agriculture in 2011 have focused on soaring land and crop prices, bumper harvests and biofuels, but a
recent deal has spotlighted a quiet industry that's booming: grain storage.
Agco , the world's third-largest farm equipment manufacturer, this week finalized its purchase of grain storage manufacturer GSI Holdings for $928 million.

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.

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.

Nov 30 (Reuters) - Giant French oil company Total SA and U.S. biofuels company said on Wednesday they would form a 50-50 joint venture to develop and sell
renewable fuels made from plant sugars.
Total, which bought a 17 percent stake in Amyris last year when the two companies first agreed to work together on biofuels research, said it would also
contribute $105 million toward the companies' existing $180 million research program.

20111207 1630 Global Market & Commodities Related News.

Stocks, euro gain before summit, ECB decision
TOKYO, Dec 7 (Reuters) - Asian shares and the euro gained on hopes that the threat of mass credit rating downgrades will pressure European leaders to come up with a convincing framework for resolving the euro zone debt crisis at a crucial summit later this week.
"People are more optimistic that the news out of the Dec. 9 meeting would be more upbeat, so it's a bit of a reaction to that," said Guy Stear, head of research with Societe Generale in Hong Kong, adding that the markets were in a technical bounce from yesterday's moves.

Euro inches higher; much rides on EU events
SINGAPORE, Dec 7 (Reuters) - The euro clawed higher on Wednesday and stayed above a one-week low hit the previous day, with markets cautiously optimistic that European leaders will take decisive action to contain the region's debt crisis at a summit later this week.
The euro rose 0.3 percent to $1.3435 , hovering above Tuesday's low near $1.3334. There was talk of light stop-loss bids in the euro at $1.3470 and also near $1.3500.

European Stocks Advance on Summit Optimism (Bloomberg)
European stocks rose on speculation that euro-area leaders will agree on a bigger bailout package for indebted nations and stricter rules for budget control at a summit this week. U.S. index futures and Asian shares also climbed. Banks led gains with Deutsche Bank AG (DBK) and BNP Paribas (BNP) SA increasing at least 2.5 percent. Verbund AG (VER), Austria’s biggest utility, added 2.3 percent after Morgan Stanley raised its recommendation on the stock. The benchmark Stoxx Europe 600 Index advanced 0.9 percent to 244.16 at 8:02 a.m. in London. The index slipped 0.3 percent yesterday after Standard & Poor’s put 15 euro-area nations on credit-rating review. The December contract the S&P 500 Index added 0.8 percent, while the MSCI Asia Pacific Index increased 1.4 percent.

Palm investors could be burnt by fretting over La Nina
NUSA DUA, Indonesia Dec 6 (Reuters) - Malaysian palm oil prices have risen too far too fast and a dramatic fall awaits as traders focus on expectations of stellar output after the first quarter of 2012, while milder than expected La Nina weather promises fewer disruptions than usual.    
Malaysian palm futures  jumped almost 20 percent over the two months to early November as markets quickly priced in a weather premium over fears that yields could be hurt by the arrival of a La Nina as Southeast Asian producers enter the monsoon season in the fourth quarter.

USDA to trim corn stocks, boost soy supplies
CHICAGO, Dec 6 (Reuters) - The U.S. Agriculture Department is expected to lower its forecast of U.S. corn stocks slightly due to rising feed use and a lackluster harvest while raising soy supplies by nearly 10 percent because of poor export demand, according to analysts surveyed by Reuters.
Corn stocks are expected to again come in at a 16-year low when the government releases its monthly crop production report Friday morning. The drawdown will likely be limited by light demand from overseas buyers as they look elsewhere to fill their supply needs.

US grains inch up on Europe hopes, bargain hunting
SINGAPORE, Dec 7 (Reuters) - U.S. grains were mostly higher after recent declines in prices spurred bargain hunting, although trading was cautious ahead of a EU summit later this week, when European leaders could take bold measures to end a crippling debt crisis.  
"The market continues to be influenced by the macro economic concerns out of Europe. The corn market has also been heavy over the past couple of weeks as a result of increased supplies," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia.

Canada bets on India's middle class to boost canola oil exports
BANGALORE, Dec 6 (Reuters) - Canada's canola oil exports to India are expected to double in the next 4-5 years as the country's burgeoning middle class opts for healthier edible oil options, said an executive of the Canola Council of Canada.
"A big piece of India that has changed in the last few years has been the growing middle class that has both the means and health awareness to purchase a product like canola oil," Cory McArthur, vice president of market development for the Canola Council of Canada, told Reuters.

Canada canola, wheat crops bigger than expected
Dec 6 (Reuters) - Hot summer weather helped Canadian farmers reap a record canola harvest and higher-than-forecast production of wheat in 2011, according to a Statistics Canada survey released on Tuesday.
After spring flooding hampered planting in parts of Saskatchewan and Manitoba, hot, dry weather helped slow-developing crops recover in the top exporting country of spring wheat, durum, canola and oats.

US corn product exports to EU at stop- Oil World
HAMBURG, Dec 6 (Reuters) - Exports of U.S. corn products to the European Union have been virtually stopped because of concern they might contain unapproved genetically modified organisms (GMOs), Hamburg-based oilseeds analysts Oil World said on Tuesday.
Europe's biotechnology industry warned in October that agricultural imports are increasingly put at risk by the slowness of the bloc's approval system for new strains of GMO crops.

China's soy imports may rise near term- Oil World
HAMBURG, Dec 6 (Reuters) - China may raise soybean purchases in coming weeks as Chinese inventories remain low, Hamburg-based oilseeds analysts Oil World said on Tuesday.
U.S. soybean prices firmed last week following trade talk of new Chinese purchases.

Minor harm to US Plains wheat from cold snap
CHICAGO, Dec 6 (Reuters) - A cold snap overnight in the U.S. Plains hard red winter wheat region caused minor, if any, harm to some of the crop, an agricultural meteorologist said Tuesday.
"There was only light snowcover in northeastern Colorado, western Nebraska and northwestern Kansas, so there might have been some winterkill there but probably not much," said Don Keeney, meteorologist for MDA EarthSat Weather.

Naimi says Saudi pumps 10 mln bpd oil in Nov -report
SINGAPORE, Dec 7 (Reuters) - Top oil exporter Saudi Arabia produced 10 million barrels per day of oil in November, Bloomberg reported, citing Oil Minister Ali al-Naimi.
It was unclear if the figure included both crude oil and condensate or just crude. Naimi, in a speech read out by his adviser Ibrahim Muhanna on Sunday, said the country is producing more than 10 million barrels per day of crude oil and gas condensates.

Brent steady above $110; eyes EU summit, China econ data
SINGAPORE, Dec 7 (Reuters) - Brent crude was steady above $110, as investors turned cautious ahead of a European summit to deal with the region's debt crisis and the release of key Chinese economic data later this week.
"The market is likely to stay cautious before the ECB rate decision and the EU summit on Friday. Investors have priced in a positive outcome at the summit, so we might see a sell-off if the meeting disappoints," said Natalie Robertson, a commodities analyst with ANZ Bank in Melbourne.

Australia's Port Hedland iron ore shipments near-flat in November
SYDNEY, Dec 7 (Reuters) - Iron ore shipments from Australia's Port Hedland, one of the world's largest export terminals, eased to 19.8 million tonnes in November from 19.9 million in October, data released by the port authority showed on Monday.  Shipments to China, the port's biggest destination were steady at 14.7 million tonnes in November, according to the data.      

Ukraine's Metinvest plans to boost steel output
KIEV, Dec 6 (Reuters) - Ukraine's biggest steel producer Metinvest  plans to invest about $1 billion in its Yenakiyeve Iron and Steel Works to boost the plant's annual output to 4.5 million tonnes from the current level of 2.7 million, it said on Tuesday.
Metinvest also said it had opened a new blast furnace at Yenakiyeve in eastern Ukraine, which would increase pig iron production to 3.0 million tonnes per year from 1.8 million.

China Steel, Vale agree 23 pct iron ore price cut-source
TAIPEI/SINGAPORE, Dec 6 (Reuters) - China Steel , Taiwan's top steelmaker, has agreed a 23 percent cut in iron ore prices for October-December with Brazilian miner Vale , as mills seek better contract terms after ore prices slumped and steel demand thinned.
A 31 percent plunge in spot iron ore prices in October prompted China Steel and steel producers in mainland China, the world's top iron ore buyer, to scour for adjustments in pricing the steelmaking ingredient to more closely reflect spot rates.

India's Goa port iron ore exports recover on Chinese demand
MUMBAI, Dec 6 (Reuters) - November shipments from India's largest iron ore exporting port, Mormugao in Goa state, recovered from last month but still down 6 percent at 3.19 million tonnes on year, as firmer prices made  shipments feasible from the western state with lower freight.
"Feasibility is there from Goa port... there is good demand for low grade in China and Orissa ores are unavailable," said Dhruv Goel, managing director, with SteelMint, an iron ore trader in eastern Orissa state.

Indonesia to export 7,500 T tin ingots this wk - source
JAKARTA, Dec 6 (Reuters) - Indonesia's tin smelters plan to export a total of 7,500 tonnes of tin ingots this week, an industry source told Reuters on Tuesday, showing an industry export ban that was meant to last until the end of this month has been broken.
Members of Indonesia's tin association (ITA) shipped 7,000 tonnes of tin ingot overseas last week after PT Koba Tin shipped 400 tonnes of tin ingots on Dec 26, to break a self-imposed industry ban aimed at propping up tin prices.

LME copper ticks up, lean volumes ahead of EU summit
SINGAPORE, Dec 7 (Reuters) - London copper futures edged higher, spurred by hopes that more aggressive measures to end the euro zone debt crisis will be reached at this week's EU summit, but thin volumes suggest the optimism is not widespread.
"There is a lot riding on the outcome of this week's upcoming EU meeting," INTL FCStone analyst Edward Meir said in a note.

LME copper ticks up, lean volumes ahead of EU summit
SINGAPORE, Dec 7 (Reuters) - London copper futures edged higher on Wednesday, spurred by hopes that more aggressive measures to end the euro zone debt crisis will be reached at this week's EU summit, but thin volumes suggest the optimism is not widespread.
The euro zone debt crisis has been the biggest pain for copper and other commodities this year because it clouded the outlook for global demand. So investors have huge expectations about Friday's summit which may be Europe's last chance to resolve a crippling two-year-old sovereign debt crisis.

Gold steady as Europe looks for debt crisis cure
SINGAPORE, Dec 7 (Reuters) - Gold traded steady on Wednesday with many investors moving to the sidelines ahead of a key European Union summit this week where policymakers are expected to find a way to end the region's two-year-old debt crisis.
Investors were also cautious after ratings agency Standard & Poor's fired a second warning shot at the euro zone in 24 hours, threatening to cut the credit rating of its financial rescue fund.

Gold flat as Europe looks for debt crisis cure
SINGAPORE, Dec 7 (Reuters) - Gold traded little changed with many investors moving to the sidelines ahead of a key European Union summit this week where policymakers are expected to find a way to end the region's two-year-old debt crisis.
"No one wants to hold stockpiles ahead of the year end and the market is extremely quiet," said Dick Poon, manager of precious metals at Heraeus in Hong Kong.

20111207 1201 Global Market & Commodities Related News.

GLOBAL MARKETS-Stocks, euro subdued before summit, ECB decision
TOKYO, Dec 7 (Reuters) - Asian shares and the euro inched up on Wednesday on hopes that warnings of mass credit rating downgrades will push European leaders into coming up with a convincing framework for resolving the euro zone debt crisis at a crucial summit later this week.
"We see scope for some additional short covering between now and the weekend, barring an EU summit failure. One caveat being if the ECB surprises with more aggressive easing on Thursday than the 25-basis-point reduction in the refinancing rate that is generally expected," analysts at BNP Paribas said.

Asia Stocks Gain on Europe Optimism (Source: Bloomberg)
Japanese stock (MXAP) futures and Australian shares rose on speculation European leaders will step up efforts to fight the debt crisis and ward off the threat of credit- rating downgrades to 15 euro nations. American depositary receipts of Sumitomo Mitsui Financial Group Inc. (8316), Japan’s second-biggest publicly traded lender, rose 0.3 percent from the closing price in Tokyo yesterday. Those of Sony Corp. (6758), which depends on Europe for about 20 percent of its sales, climbed 0.2 percent. BHP Billiton Ltd. (BHP), Australia’s No. 1 oil producer, gained 1.2 percent after crude prices climbed to a three-week high yesterday. “There is an expectation in the market that Europe will advance measures to overcome the debt issues,” said Hiroichi Nishi, an equities manager in Tokyo at SMBC Nikko Securities Inc. “While there’s a sense of expectation in the market, investors still want to see the results of meetings this week of the European Union and European Central Bank.”

COMMODITIES-Up on thin volume; oil rises on euro summit hopes
NEW YORK, Dec 6 (Reuters) - Commodities ended mostly steady  on Tuesday, with oil providing broad support on hopes that a European Union summit later this week would produce a more  workable agreement for the region's debt crisis.
"The cost of not agreeing will be higher than agreeing,"  Thorbjoern Bak Jensen, an analyst at A/S Global Risk Management  Ltd, said, referring to what the summit was likely to produce in terms of euro zone cooperation.

U.S. crude up slightly on big API stock draw
NEW YORK, Dec 6 (Reuters) - U.S. crude oil futures added to gains slightly in post-settlement trading on Tuesday after data from the American Petroleum Institute showed a 5 million barrel crude stocks draw last week, much more than forecast.
On the New York Mercantile Exchange, January crude  was up 18 cents at $101.17 a barrel, with the move up stymied by the larger-than-expected build in product stocks. January crude was up 10 cents at $101.09 before the data was released.

NYMEX-Natural gas ends up, weather, supplies limit gains
NEW YORK, Dec 6 (Reuters) - U.S. natural gas futures ended higher on Tuesday for the first time in three sessions, backed by some technical buying after two straight losing sessions and reports of possible well freeze-offs in the Southwest.  
"There's a little cold in the South, but we need sustained cold in the East to pull prices up, and I don't see it yet," a Pennsylvania trader said, adding if a broader-based cold wave doesn't show up soon, prices could sink sharply from here.

Euro Coal-Prices dip on stalling oil prices
LONDON, Dec 6 (Reuters) - Physical prompt coal prices fell by a marginal 25-50 U.S. cents on Tuesday as oil prices stalled, with tension in Iran balanced against a broader market fall after Standard and Poor's warned of possible euro zone downgrades.
"Coal is still tracking oil, the euro, equities, but everybody's squaring their books already, not a lot of appetite to do business right now," one European trader said.

20111207 1157 Global Economic Related News.

Asia: Surviving Europe ‘stress test’ boosts case for upgrades
Asian economies are withstanding Europe’s debt crisis so well that some investors are positioning for credit-rating upgrades in the region. Five-year credit-default swaps for China, South Korea, Indonesia, Malaysia, the Philippines and Thailand climbed an average 63 bpts to 161 this year, while contracts for 17 eurozone countries, excluding Greece, jumped 118 to 301. Moody’s Investors Service is watching the trading in the swaps, which protect against non-payment, and how Asia copes with capital flows as it weighs rating changes, said Thomas Byrne, a senior vice president at Moody’s in Singapore. (Bloomberg)

The eurozone's economy edged up 0.2% qoq in 3Q (+0.2% in 2Q and +0.8%  in 1Q), the Eurostat said. On a yoy basis, gross domestic product (GDP) rose by  1.4% (+1.7% in 2Q). The readings matched economists’ expectations. (Xinhua,  Bloomberg)

Standard & Poor’s put Germany, France and 13 other euro-area nations on  review for a downgrade, saying “continuing disagreements among European  policy makers on how to tackle” the region’s debt crisis risk damaging their  financial stability. (Bloomberg)

Consumer prices in the Philippines rose 4.8% yoy in Nov, following a 5.2%  gain in Oct. Core inflation rose 3.7% yoy (+3.9% in Oct). Economists had  expected a 4.9% headline increase. (Bloomberg)

Forex reserves in Indonesia declined to US$111.32bn in Nov, a 2.3% decline  from Oct. (Bloomberg)

Thailand’s outstanding public debt as of the end of Sep totaled THB4.44tr,  or 41.66% of GDP, a THB176.75bn increase from Aug, Public Debt Management  Office director Chakkris Paraphanthakul said. (Bangkok Post)

Emerging East Asia — the ASEAN economies plus China, Hong Kong, South  Korea and Taiwan — is expected to grow 7.2% next year (7.5% in estimate as at  Sep) after  growth of 7.5% this year, the ADB said in its Asian Economic  Monitor on Tuesday. (Reuters)

Corelogic’s US home price index fell 1.3% mom in Oct and 3.9% yoy (3.8% in  Sep). Excluding distressed sales, prices were down 0.5% yoy. (Reuters)

Australia: RBA's cut reflects lack of confidence in Europe steps
Australia executed its first back-to-back interest-rate cut since 2009 and the Asian Development Bank cited escalating risks to its growth outlook, signaling lack of confidence in the region that Europe’s leaders have done enough to stem the sovereign-debt crisis. Reserve Bank of Australia Governor Glenn Stevens lowered the overnight cash-rate target by a quarter percentage point, to 4.25%, confounding the forecasts of 12 of 25 economists surveyed by Bloomberg News. Philippine and Indonesian officials in the past day have said their central banks are also prepared to reduce borrowing costs. (Bloomberg)

Germany: Factory orders surge on rebound in export demand
German factory orders surged the most in 19 months in October after three straight declines, led by a rebound in demand from abroad. Orders, adjusted for seasonal swings and inflation, jumped 5.2% from September, when they dropped 4.6%, the Economy Ministry in Berlin said. Economists forecast a gain of 1%, according to the median of 34 estimates in a Bloomberg News survey. In the year, orders rose 5.4% when adjusted for work days. (Bloomberg)

Euro: S&P places 15 Euro nations on warning for credit downgrade
Standard & Poor’s said Germany and France may be stripped of their AAA credit ratings as the debt crisis prompts 15 euro nations to be put on review for possible downgrade. The euro area’s six AAA rated countries are among the nations to be placed on a negative outlook, and their credit ratings may be cut depending on the result of a summit of European Union leaders on 9 Dec, S&P said. The euro reversed its gains and US Treasuries rose earlier yesterday after the Financial Times reported that the credit-ranking firm planned to reduce six AAA outlooks. “Systemic stress in the eurozone has risen in recent weeks and reached such a level that a review of all eurozone sovereign ratings is warranted,” S&P said in a statement. (Bloomberg)

US: Drop in joblessness is early sign of coming shift
The drop in US unemployment so far this year may be an early glimpse of what’s to come as the workforce ages. The jobless rate, which was 9.4% in December 2010, declined to 8.6% last month, according to Labor Department data issued 2 Dec. The report also showed payrolls have climbed by 132,000 a month on average in 2011, around the pace most economists say would keep the rate stable as the population grows. (Bloomberg)

US manufacturers are more optimistic about sales, spending and hiring for  next year than service companies, a sign factories will remain at the forefront  of the economic expansion, according to the Institute for Supply Management.  Purchasing managers at factories anticipate sales will grow 5.5% next year and  capital investment will increase 1.9%, the group’s semiannual forecast showed.  Revenue and spending will increase at a slower pace among service providers.  (Bloomberg)

20111207 1029 Malaysia Corporate Related News.

AirAsia wants SLA for KLIA2
AirAsia wants MAHB to implement its requests. If these requests are not implemented, its operations at the new low-cost carrier terminal (LCCT), KLIA2 will be negatively impacted, the company says. AirAsia commercial director Jasmine Lee wants MAHB to provide a service level agreement which should incorporate aeronautical charges at KLIA2. MAHB currently has conditions of use (CoU) agreements with its airline partners and ground handlers at KLIA. The CoU provides guidance on the use of airport facilities, particularly with regards to the safe and secure use of the airport, as well as a schedule of airport charges. (Financial Daily)

Proton says unaware of any corporate proposals
The rally in the share price of national automaker Proton Holdings that started last Thursday came to a halt yesterday, as its top management clarified to Bursa Malaysia that it is not aware of any reason for the unusual market activity in its shares. The stock started its upward surge last Thursday after rumors re-emerged that its largest shareholder Khazanah was inviting parties to bid for part or all of its stake in the group. (Financial Daily)

Ekovest-MRCB JV gets River of Life project
Ekovest-MRCB JV SB, a 60:40-joint venture between Ekovest and MRCB has finally been appointed the project delivery partner of the RM2.2bn Klang river rehabilitation and beautification project known as the River of Life project. The JV first obtained the letter of intent from the government for the job back in February. (Financial Daily)

Pudu Jail project to include bumi firms
The Ministry of Finance (MoF) has ordered UDA Holdings to come up with a new master plan for the redevelopment of its Pudu Jail land to ensure a higher level of bumiputera participation. UDA chairman Datuk Nur Jazlan Mohamed yesterday said MoF has also directed that the city centre land be divided into three parcels with two of the plots given to bumiputera developers. He added that UDA, as the project’s master developer, will have to find a suitable way to split the 19.8 acre site three ways. (Financial Daily)

GuocoLand buys Cheras land for RM108m
GuocoLand us buying nine land parcels measuring 18.9 hectares in Cheras for RM107.87m, or RM53 per sq ft to be satisfied via cash. The property developer said its wholly-owned subsidiary Ace Acres SB had entered into a conditional sale and purchase agreement with Bonds Corp SB to purchase the nine freehold land parcels. (Financial Daily)

Maxcorp boss seeks to take over Wijaya
Former army Major Anuar Adam is gunning for control of Wijaya Baru Global. Anuar is understood to be backed by a group of powerful Indonesia businessmen. The low-profile Adam, who helms privately held Maxcorp Group of companies, aims to buy out Datuk Tiong King Sing in a deal that values the Sarawakian tycoon’s interest in Wijaya at about RM1.10 per share. (BT)

KNM subscribes to 10m RCPS in GreenTech for RM10m  Yesterday, KNM Group Bhd announced that its wholly owned subsidiary,  KNM Renewable Energy Sdn Bhd (“KNMRE”), entered into a Share  Subscription Agreement with Green Energy and Technology Sdn Bhd  (“GreenTech”), a subsidiary of Octagon Consolidatd Bhd (“Octagon”), to  subscribe for a total of 10m 8% Redeemable Convertible Preference  Shares (“RCPS”) of RM0.01 each in GreenTech, for RM10m in total, or  RM1.00 per RCPS. Tenure of the RCPS is 3 years and can be extended  for another 2 years subjected to a mutual consent of both parties. Upon  redemption, KNMRE will own at least 51% stake in GreenTech. (Bursa  Announcement)

Guocoland acquires 46.72 acres of land for RM107.8m Guocoland (Malaysia) Bhd’s indirect wholly owned subsidiary is  acquiring 46.72 acres of land worth RM107.8m in the Cheras locality as  part of its land bank expansion plan for future developments. Its  indirect wholly owned subsidiary Ace Acres Sdn Bhd had entered into a  sales and purchase agreement with Bond Corporation  Sdn Bhd to  acquire nine parcels of land located in Cheras and Mukim Petaling. (The  Edge)

Bank Islam 9-month profit up 41.7% to RM341.9m  Bank Islam Malaysia Bhd's profit before zakat and tax increased 41.7%  to RM341.9m in the first nine months of FY11, boosted by a better  product mix and robust financing growth. Its revenue for 9M11 was up  by 12.1% year on year to RM1.2b despite a slower expansion rate of  9.4% for fund based income a year ago. (The Edge)

CBIP unit gets RM17.88m contract from Felda  CB Industrial Product Holding Bhd has secured a RM17.88m contract  from Felda Palm Industries Sdn Bhd for the conversion of the Trolak  palm oil mill in Sungkai, Perak. It’s wholly owned subsidiary Modipalm  Engineering Sdn Bhd had accepted the letter of award to supply,  design, fabricate, delivery to site, construction, erection, installation and  complete with civil, mechanical and electrical works for the mill. (The  Edge)

MK Land: Indian project contribution from 2013  MK Land Holdings Bhd expects its affordable homes project in  Bangalore in India to contribute to the group's earnings beginning its  financial year 2013. The project, with a gross development value (GDV)  of more than RM3b, is targeted to take off after the company's current  financial year. (Business Times)

Hiap Teck unit gets iron ore mining rights in Terengganu   Hiap Teck Venture Bhd’s 55% owned Eastern Steel Sdn Bhd has been  granted a licence by the Terengganu government to mine iron ore on a  243ha site near Bukit Besi. The mining concession will allow Eastern  Steel to mine the area, which has estimated reserves of 40m to 50m  tonnes of iron ore, until the end of its mining life. (The Star)

Lion Corp proposes to issue shares, undertake capitalreconstruction move  Lion Corp Bhd, an investment holding company primarily engaged in the  manufacturing and sale of steel, has proposed to issue up to 950m  ordinary shares pursuant to a proposed settlement scheme, undertake a  capital reconstruction exercise and provide financial assistance in  relation to the issuance of new shares. (The Star)

1 Utopia gets UMA query from Bursa  1 Utopia Bhd, in reply to a Bursa Malaysia query, said it was not aware  of any rumour, report or possible explainations for the unusual market  activity in its shares. The counter rose 20% or two sen to close at 12  sen. (The Star)

Trading in Baneng to be suspended  Trading in the securities of Baneng Holdings Bhd will be suspended  from Dec 14. This is to make way for the delisting of the company on  Dec 16, after it failed to submit its regulation plan to the Securities  Commission or Bursa Malaysia before the stipulated deadline. The PN17  company, however, can still appeal to Bursa against the delisting at the  latest by Dec 13. (The Star)

The government is open to raising quotas to generate renewable power (RE) if consumers are willing to pay another 1% RE levy on top of the current 1% in  the electricity bills. Starting this month, consumers in Peninsular Malaysia and  Sabah, whose electricity bills exceed RM77, will start paying the 1% levy to  subsidise RE producers. Energy, Green Technology and Water Ministry  secretary-general Datuk Loo Took Gee estimates Sustainable Energy  Development Authority Malaysia (Seda) to collect up to RM250m in levy by the  end-2012.  Due to limited funds, the feed-in tariff (FiT) quota allocation for RE  producers is awarded on a first-come, first-serve basis. This prompted a  rush in online applications to Seda. Since Dec 1, applications for the FiT  allocation under the categories of biomass and solar photovoltaic (PV)  renewable energy projects were fully taken up. "There's so much  interest in biomass and solar PV," said Seda COO Ali Askar Sher  Mohamad. Asked if the government may raise the quotas and allow for more RE  producers to supply to the national grid, Loo said: "It all depends on the  funding. If (heavy energy) consumers (in Peninsular Malaysia and  Sabah) are willing to pay an addition 1 per cent (to the current 1 per cent  RE levy on their electricity bills), we're open to raising the quotas." (BT)

SP Setia  made its way to the  English Premier League when its  advertisements were spotted in a match featuring Arsenal.  Taking out an advertisement in the Wigan Athletic-Arsenal match last  Saturday, the company and its website logos were prominently  displayed several times on the stadium's digital advertising board in  Wigan's homeground DW Stadium during the match.  "This is the first time a Malaysian property developer has ever been  featured on the EPL advertising space," the group said. According to the  group, more advertisements were being lined up for upcoming games  featuring top-billed clubs including Manchester United, Manchester  City, Chelsea, Liverpool and Arsenal. (Star)

Petronas has terminated the services of the company managing its  controversial Prince Court Medical Centre (PCMC). Sources said the contract  with Vamed Healthcare Services Sdn Bhd was ended on November 30, although  the initial contract was believed to be until March 2014. Vamed, an  international healthcare group, was managing PCMC in a partnership with the  Medical University of Vienna. The hospital, owned by Petronas Hartabina Sdn  Bhd, has faced much criticisms in recent years with critics pointing to the high  cost in building and equipping it. (BT)

Parkson Holdings Bhd which secures most of its revenue in China, plans to  enter new markets in South-East Asia to tap the region's growing affluence. The  retailer with 102 outlets in China, Malaysia, Vietnam and Indonesia viewed  Myanmar, Thailand and the Philippines as potential markets, said Alfred Cheng,  MD of the units listed in Hong Kong and Singapore. Parkson planned to open  24 more stores in Asia by the end of next year, followed by its first in Cambodia  in the first half of 2013, he said. “The Indochina region, as  a whole, has about  160m people. That's where we want to be.” (Bloomberg)

Trading in the securities of  Baneng Holdings Bhd  will be suspended with effect from Dec 14 as it has failed to submit its regularisation plan to the Securities Commission for approval within the stipulated timeframe. (BT)

20111207 0957 Global Market Related News.

Asia Stocks Gain on Europe Optimism (Source: Bloomberg)
Asian stocks (MXAPJ) rose on speculation the European leaders meeting this week in Brussels will step up efforts to fight the debt crisis to stave off lower national credit ratings that will make funding bailouts more costly. Nintendo Co., a maker of video-game players that gets 34 percent of its sales in Europe, rose 1.2 percent in Osaka after a report that sales of a handheld game machine will reach target ahead of schedule. Meiji Holdings Co., a Japanese dairy-products producer, gained 3.6 percent after slumping the most since March 15 yesterday on a report radioactive cesium was found in some its products. Hyundai Development Co. (012630), a South Korean builder, rose 3.3 percent after a report the government will announce measures to spur housing markets.
“There is an expectation in the market that Europe will advance measures to overcome the debt issues,” said Hiroichi Nishi, an equities manager in Tokyo at SMBC Nikko Securities Inc. “While there’s a sense of expectation in the market, investors still want to see the results of meetings this week of the European Union and European Central Bank.”

Asia Surviving EU ‘Test’ Boosts Upgrade Chance (Source: Bloomberg)
Asian economies are withstanding Europe’s debt crisis so well that some investors are positioning for credit-rating upgrades in the region. Five-year credit-default swaps for China, South Korea, Indonesia, Malaysia, the Philippines and Thailand climbed an average 63 basis points to 161 this year, while contracts for 17 eurozone countries, excluding Greece, jumped 118 to 301. Moody’s Investors Service is watching the trading in the swaps, which protect against non-payment, and how Asia copes with capital flows as it weighs rating changes, said Thomas Byrne, a senior vice president at Moody’s in Singapore.
Asia’s 10 biggest economies excluding Japan grew an average of 5.2 percent in the third quarter, triple the euro-zone’s 1.4 percent rate, and their central banks hold $5.2 trillion in currency reserves, more than half the global total of $10.2 trillion. Threadneedle Asset Management and Manulife Asset Management say they favor Indonesian notes, ranked Ba1 by Moody’s, one level below investment grade, while Aviva Investors says the Philippines, rated Ba2, is most likely to win an upgrade.

U.S. Stocks Advance on Speculation Europe Will Move to Tame Debt Crisis (Source: Bloomberg)
U.S. stocks rose, sending the Standard & Poor’s 500 Index higher a second day, on speculation European leaders may act to contain the debt crisis after S&P put 15 euro nations on review for possible downgrade. 3M Co. (MMM) added 1.5 percent as revenue may increase as much as 6 percent next year amid a boost from acquisitions. General Electric Co. (GE) rose 2.4 percent as Sanford C. Bernstein & Co. raised its recommendation. Darden Restaurants Inc. (DRI), operator of the Red Lobster chain, tumbled 12 percent after cutting its full-year sales and profit growth forecasts. The S&P 500 advanced 0.1 percent to 1,258.47 at 4 p.m. New York time, rebounding from an earlier drop of 0.3 percent. The Dow Jones Industrial Average added 52.30 points, or 0.4 percent, to 12,150.13. About 6.3 billion shares changed hands on U.S. exchanges, or 19 percent below the three-month average.

Japanese Stocks Gain on Optimism Europe Will Act to Stem Crisis at Summit (Source: Bloomberg)
Japanese stocks rose before a meeting of European leaders tomorrow on speculation policy makers will step up efforts to fight the debt crisis as 15 euro nations face the threat of credit-rating downgrades. Sony Corp. (6758), which depends on Europe for 20 percent of its sales, climbed 1.6 percent. Mitsui O.S.K. Lines Ltd., the world’s largest shipping fleet, jumped 4.3 percent after saying it will cut costs by jointly operating crude-oil tankers. Meiji Holdings Co. rebounded 3.6 percent from yesterday’s plunge after radiation was found in its baby-milk formula. “There is an expectation in the market that Europe will advance measures to overcome the debt issues,” said Hiroichi Nishi, an equities manager in Tokyo at SMBC Nikko Securities Inc. “While there’s a sense of expectation in the market, investors still want to see the results of meetings this week of the European Union and European Central Bank.”

European Stocks Decline as S&P Puts 15 Euro Nations on Review; Metro Sinks (Source: Bloomberg)
European stocks fell, snapping two days of gains for the benchmark Stoxx Europe 600 Index, as Standard & Poor’s put 15 euro-area nations on watch for potential rating downgrades. RWE AG (RWE) tumbled 7.2 percent as Germany’s second-largest utility company sought to sell shares. Metro AG (MEO), Germany’s biggest retailer, plunged 14 percent as it forecast falling sales and earnings this year. Yara International ASA jumped the most since April 2009. The Stoxx 600 slipped 0.3 percent to 241.92 at the close. The gauge rallied 0.8 percent yesterday as Italy’s Prime Minister Mario Monti introduced a proposal to cut his nation’s debt. The gauge posted its biggest rally since November 2008 last week as central banks lowered the interest rate on dollar funding and China reduced its reserve ratio for banks.

German Stocks Fall After S&P Ratings Review; RWE, Metro Slump (Source: Bloomberg)
German stocks dropped, snapping a two-day advance for the DAX Index, after Standard & Poor’s put Germany and 14 other euro-area nations on watch for potential credit-rating downgrades. RWE AG slumped 7.2 percent after Germany’s second-largest utility raised 2.1 billion euros ($2.8 billion) in a share sale to reduce debt. Metro AG (MEO) sank the most on record as the retailer cut its profit forecast. Commerzbank AG (CBK) and Deutsche Bank AG (DBK), the nation’s biggest lenders, lost more than 1.5 percent. The benchmark DAX slipped 77.27, or 1.3 percent, to 6,028.82 at the close of trading in Frankfurt. The gauge has retreated 13 percent this year as the sovereign-debt crisis spread through Europe and investors speculated economic growth will stall in the region next year.

Drop in U.S. Jobless Rate Sign of Demo Shift (Source: Bloomberg)
The drop in U.S. unemployment so far this year may be an early glimpse of what’s to come as the workforce ages. The jobless rate, which was 9.4 percent in December 2010, declined to 8.6 percent last month, according to Labor Department data issued Dec. 2. The report also showed payrolls have climbed by 132,000 a month on average in 2011, around the pace most economists say would keep the rate stable as the population grows. At play is a decline in the share of the working-age population, known as the participation rate, meaning that the economy needs to create fewer jobs to bring down unemployment. While some of the decrease has been caused by discouraged workers dropping out of the labor force, another driver is that the baby-boom generation is starting to move into retirement, according to economist Dean Maki.

S&P Says Euro Region’s EFSF May Lose Rating If Any AAA Member Downgraded (Source: Bloomberg)
The European Financial Stability Facility may lose its top credit rating if any of the bailout fund’s six guarantors face a downgrade from AAA, Standard & Poor’s said. “We could lower the long-term credit rating on EFSF by one or two notches if we were to lower the AAA sovereign ratings, which are currently on creditwatch, on one or more of EFSF’s guarantor members,” S&P said in a statement today. At the same time, the ratings company said it “could affirm the AAA ratings on EFSF and its issues if we affirm the rating on all six of EFSF’s guarantor members currently rated AAA.” Germany, France, the Netherlands, Finland, Austria and Luxembourg are the top-rated nations backing the rescue fund.

Geithner Backs Merkel’s Crisis Plan (Source: Bloomberg)
U.S. Treasury Secretary Timothy F. Geithner backed a German-French push for closer economic cooperation in Europe, urging policy makers to work with central banks to erect a “stronger firewall” to end the debt crisis. Geithner, speaking in Berlin today after talks with German Finance Minister Wolfgang Schaeuble, praised the commitment to reform programs put in place by new governments in Spain, Italy and Greece, saying that he is “very encouraged” by recent efforts to buttress the euro area. He welcomed “progress toward a fiscal compact for the euro zone,” echoing language used last week by European Central Bank President Mario Draghi. “This of course will take time” and “a very substantial commitment and a sustained commitment of political will,” he told reporters. “Financial crises are ultimately resolved when governments and central banks succeed in creating conditions that make it compelling for investors to take the risk involved in lending to governments and to banks.”

U.S. Senate Democrats Offer Smaller Surcharge in Payroll Tax Cut Proposal (Source: Bloomberg)
Democrats in the U.S. Senate will seek another vote on a payroll tax cut for workers this week in an attempt to pressure more Republicans to support an extension into 2012. Legislation proposed by Senate Democrats yesterday would cut the payroll tax paid by employees to 3.1 percent next year from the current 4.2 percent. The $185 billion cost would be covered by a 1.9 percent surtax on annual incomes exceeding $1 million and by raising the fees charged to lenders by government-owned mortgage giants Fannie Mae (FNMA) and Freddie Mac. The proposal was sponsored by Senator Robert Casey, a Pennsylvania Democrat who is facing a tough race for re-election next year.

French-German Plan Gets Geithner Backing (Source: Bloomberg)
A German-French push for closer economic ties in Europe won the backing of U.S. Treasury Secretary Timothy F. Geithner, who urged governments to work with central banks to erect a “stronger firewall” to end the debt crisis. Geithner, speaking in Berlin yesterday after talks with German Finance Minister Wolfgang Schaeuble, praised the commitment to fiscal programs put in place by new governments in Spain, Italy and Greece, and said he was “very encouraged” by recent efforts to buttress the euro area. He welcomed “progress toward a fiscal compact for the euro zone,” echoing language used last week by European Central Bank President Mario Draghi. Geithner’s comments backing German Chancellor Angela Merkel and French President Nicolas Sarkozy were more upbeat than his recent remarks urging Europe to move faster. In a September trip to Europe, Geithner asked leaders to set aside their differences to excise “catastrophic risks” from markets, prompting European criticism of U.S. debt levels.

Bank of England Starts New Sterling Liquidity Facility as Crisis Escalates (Source: Bloomberg)
The Bank of England introduced a new sterling liquidity facility to address potential financial- market strains as Europe’s sovereign debt crisis intensifies. The central bank announced the move “in light of the continuing exceptional stresses in financial markets,” it said in a statement in London today. “This facility is designed to mitigate risks to financial stability arising from a market-wide shortage of short-term sterling liquidity.” The measure comes a week after the Bank of England, the Federal Reserve and four other central banks made it cheaper for banks to borrow dollars in emergencies and agreed to create temporary bilateral swap programs to provide funding if needed in each central bank’s currency. The moves indicate officials are taking preemptive measures in case Europe’s debt crisis escalates further and freezes markets.

Australia Economy Grew More Than Forecast (Source: Bloomberg)
Australia’s economy expanded more than economists forecast last quarter, driven by consumer spending and mining. The local currency gained. Third-quarter gross domestic product advanced 1 percent from the previous three months, when it rose a revised 1.4 percent, a Bureau of Statistics report released in Sydney today showed. The result compared with the median of 24 estimates in a Bloomberg News survey for a 0.8 percent gain. The report covers a period before Europe’s sovereign-debt crisis began to weigh on Asian demand for commodities that yesterday prompted Reserve Bank Governor Glenn Stevens to make back-to-back interest-rate cuts for the first time since 2009 to shore up domestic demand. A A$456 billion ($465 billion) pipeline of resource projects driven by companies such as BHP Billiton Ltd. (BHP) has cushioned a slump in manufacturing and services hit by a record currency and subdued consumer spending.

20111207 0957 Global Commodities Related News.

Corn (Source: CME)
US corn futures end higher, rebounding from one-year lows amid bargain-hunting and a lack of farmer sales. The market fell in early trade to the lowest spot-month price since last December, but the drop did not prompt panic selling, traders say. "Basis is tight and farmers aren't selling a lot of corn, suggeting it's not there," says Joel Karlin of Western Milling. Other traders say farmers have grain to sell but are content to wait until prices rebound. Weak export demand looms over the market, but analysts say that regardless of what happens the next few months, domestic supplies will be tight well into next year. CBOT Dec. corn ends up 5c to $5.85 1/4 a bushel, up from an earlier low of $5.70. March corn up 5 1/2c to $5.96 1/2.

Wheat (Source: CME)
U.S. wheat futures end mostly higher on support from corn. Grains markets rebounded from early losses, with corn bouncing off of multi-month lows and giving wheat a lift as well. Both crops are used for livestock feed. Analysts worried about crop troubles in the Ukraine, but say other crop news is bearish, with bountiful wheat supplies coming from Canada and Australia. That is limiting prospects for U.S. exports. CBOT Dec. wheat ends flat at $5.98 3/4 while other contracts end up. KCBT Dec. wheat ends up 1/2c to $6.67 and MGEX Dec. wheat ends up 6c to $8.54 1/4.

Rice (Source: CME)
US rice futures end higher, rebounding from a recent slump as firmer cash prices underpinned the market. Futures, which have tumbled throughout the fall, are cheap compared to cash prices, notes Price Futures' Jack Scoville. "The cash market is pretty dead, but it's quoted higher." CBOT January rice ends up 21c at $14.59 1/2 per hundredweight.

U.S. grains slip as S&P warning erodes confidence
KUALA LUMPUR, Dec 6 (Reuters) - U.S. grain futures slipped, extending declines seen in the previous session after Standard & Poor's warned it may cut the credit ratings of euro zone countries as the region's leaders struggle to stem the spread of the debt crisis.
"General macro-economic sentiments are still influencing grain prices," said Lynette Tan, an analyst at Phillip Futures in Singapore.

Thai 2012 rice exports may halve on high prices
BANGKOK, Dec 6 (Reuters) - Thai rice exports in 2012 may fall by half from this year to around 5 million tonnes as its prices are too high compared with those of rivals Vietnam and India, exporters said on Tuesday.
The drop could topple it off its position as the world's top rice exporter behind Vietnam, which aims to sell a record of more than 7 million tonnes this year through lower prices even as the Thai intervention scheme keeps prices up.

Philippines keeps 2012 rice import plan at a low 500,000T
MANILA, Dec 6 (Reuters) - The Philippines, once the world's top rice buyer, will import 500,000 tonnes of the grain next year as originally planned, with most of the volume to be sourced possibly from Vietnam as early as January, the Agriculture chief said on Tuesday.
Departing from the practice in previous years where the government was the main importer of the staple, next year's purchases would be made solely by the private sector, Agriculture Secretary Proceso Alcala told reporters.

Argentina set to approve more old-crop corn exports
BUENOS AIRES, Dec 5 (Reuters) - Argentina's government is expected to approve the export of an additional 2-3 million tonnes of 2010/11 corn on Wednesday, a senior agriculture official said.
The government controls wheat and corn exports through a quota system designed to guarantee affordable local food supplies and help tame high inflation, a policy that irks farmers in one of the world's top grains suppliers.

Argentine corn may face dryness when flowering - forecaster
BUENOS AIRES, Dec 5 (Reuters) - Corn and soy crops in Argentina are in good shape for now but forecasts for several weeks of dry weather could affect corn fields that are in the flowering stage, an agricultural meteorologist said on Monday.
Argentine farming areas received plentiful rains in October and most of November and some analysts expect the country's farmers to produce a record harvest of both crops.

Informa boosts 2012 China corn view by 3 pct
CHICAGO, Dec 5 (Reuters) - Analytical firm Informa Economics on Monday raised its forecast of China's 2012 corn production by 5.5 million tonnes to 190 million tonnes due to improved yield estimates.
An official at Informa confirmed the numbers, which were first reported by trade sources.

Australia sees record wheat crop, rains to cut quality
SYDNEY, Dec 6 (Reuters) - Australia is heading for a record wheat crop and exports in 2011/12, the government's chief commodities forecaster said on Tuesday, although a deluge of rain affecting some areas as the harvest unfolds is set to reduce the quality of the crop.
More shipments from Australia, typically among the world's top four wheat exporters, will put pressure on international grains prices as farmers buy the cheap feed wheat to substitute for more expensive corn.

Kazakh grain crop more than doubles to record
ALMATY, Dec 5 (Reuters) - Kazakhstan's grain crop more than doubled this year to hit a record 26 million tonnes by clean weight, Novosti-Kazakhstan news agency quoted the Central Asian nation's state-owned grain trader as saying on Monday.
The vast steppe nation of 16.6 million people gathered 12.2 million tonnes of grain by clean weight in 2010, when the harvest was hit by a severe drought.

Agriculture Markets Hit By Good Harvests, Poor Technicals - Credit Suisse (Source: CME)
The outlook for agriculture markets has deteriorated, Credit Suisse said, as harvests have come in better than expected and long-term technical trends have turned negative in many markets. Analysts at the Swiss bank warned they had a negative outlook for most prices as agricultural markets do not yet provide good value, while the environment looks set to remain challenging given sluggish growth, persistent funding stress, and deleveraging pressure. For grains, Credit Suisse said corn's strong over valuation and neutral technicals continue to point to lower prices, despite positive short-term fundamentals in a tight market. The bank's analysts said corn prices need to fall below $5.00 a bushel to trade at fair levels, but revealed a $5.70/bushel 3-month forecast and $5.40/bushel 12-month forecast, due to positive cyclical support. Credit Suisse said its wheat outlook is now negative due to bearish technicals, neutral fundamentals and an undemanding valuation.
The bank's analysts said momentum is weak with wheat prices having failed to reach new highs since February, and the long-term trend now downward sloping. For softs, Credit Suisse said there are still substantial downside risks in the coffee market, as it's probably one of the most cyclical of all agricultural commodities. With economic growth in Europe slowing and coffee being significantly over priced, the bank's analysts said value is the dominating factor, making their 12-month outlook negative. Credit Suisse said the focus is on cocoa's technical analysis because of neutral valuation and fundamentals, but the trend has broken to the downside and momentum is deeply negative. This leaves the bank with a negative outlook for cocoa, with very few signs of consolidation before the technical situation can start to improve again. However, Credit Suisse said that sugar should be more stable than other agricultural markets given its neutral trend and valuation.
Despite the global sugar market heading towards a large surplus this year, capping upside from current levels, the bank said that such an over-supply is needed as inventories are at multi-year lows. Credit Suisse said that prices are likely to remain within the 21 to 25 cents/lb price range.

StatsCan Confirms Larger Canadian Canola, Wheat Crops (Source: CME)
The upward nudge in the crop-production estimates released by Statistics Canada on Dec. 6 for canola and all wheat grown in Canada during the 2011-12 (August-July) crop year was a bit bigger than expected while the forecast for oats and barley suggested a tight supply situation. Statistics Canada pegged Canadian 2011-12 canola output at a record 14.165 million metric tons. Pre-report estimates had called for canola production to be in the range of 13.5 million to 14.4 million tons. The December estimate was also larger than the forecast of 12.928 million tons made by the government agency in early October and compares with the 2010-11 level of 12.773 million. "Anything over 14.0 million tons for canola should be bearish for prices but, because demand from both the domestic and export sectors has been so strong, the market has not been able to respond in any kind of downward motion," said Ken Ball, a broker with Union Securities in Winnipeg.
"I would call the demand from the export and domestic sectors 'sensational' and the main reason a record large canola crop of over 14.0 million tons is not causing any major selloff in value," said Mike Jubinville, an analyst with ProFarmer Canada. All wheat output in Canada during the 2011-12 season was pegged by Statistics Canada at 25.261 million tons. Pre-report ideas had expected the production survey to show output in the area of 24.2 million to 25.2 million tons. In early October, the government agency forecast all wheat production at 24.160 million tons while output in 2010-11 totaled 23.167 million. Weather conditions for both canola and wheat resulted in yields coming in above expectations, said Ron Frost with Frost Consulting in Calgary. The harvest weather for both crops were also obviously optimal, he said.
One of the surprises in the survey was the forecast for barley. Statistics Canada projected 2011-12 barley output at 7.756 million tons. Pre-report ideas had forecast barley production to be in the range of 7.910 million to 8.400 million tons. In early October, the government agency had pegged barley production at 7.898 million tons; in 2010-11, barley output was 7.605 million. The lower-than-anticipated barley-production forecast was linked to both weather and acreage. "Barley must not have liked the late start to the growing season, which was a bit wetter than normal, which conversely had a negative impact on yield potential," Ball said. Jubinville linked the smaller barley crop to farmers not planting as much area to the crop than has been reported previously. "Basic economics in the spring suggested that barley returns were not as good as other crops, and this kind of production estimate confirms this idea," Jubinville said.

Softs, Grains Prices Fall Once Again In November - World Bank (Source: CME)
The average price of soft commodities and grains declined once again in November, the World Bank said, as agricultural markets were hit by demand concerns amid further economic gloom last month. Robusta coffee prices declined for the sixth month in a row to 214.4 cents/kg, down 20% from May, while arabica coffee prices fell for the second month in a row to 540.3 cents/kg, down 11% from September. Analysts expect coffee prices to fall further in 2012 due to large harvests from Brazil and Vietnam, but diminished stocks will likely keep risks high. Cocoa fell for the fourth month in a row to 252.74 cents/kg, the World Bank said, down 20% from July. An abundant supply from West Africa and better expectations for the 2011-12 crop are expected to lead prices lower next year. World sugar prices fell for the fourth month in a row to 52.95 cents/kg, down 15% from July, with lower prices forecast in 2012 as the market shifts into a surplus for the first time in three seasons.
Corn prices fell for the third month in a row to $274.39 a metric ton, the World Bank said, down 12% from August. Analysts expect lower corn prices than 2011 averages next year, with record production expected towards the end of 2012. Meanwhile, U.S. soft red wheat also fell for the third month in a row to $253.16/ton, down 8.8% from August. Neutral price direction is expected over the next 12 months as the second largest world wheat crop on record softens the fundamental outlook.

India sugar output up so far; more exports likely
NEW DELHI, Dec 5 (Reuters) - India's sugar output rose 22.2 percent in the first two months of the new season from October despite crushing delays in its top producing state, a leading industry body said on Monday, boosting the chances of more sugar exports by the government.
Last month, the world's top consumer of sugar, and the biggest producer after Brazil, allowed mills to export 1 million tonnes, kicking off the overseas sales of the sweetener in the 2011/12 season.

Indonesian coffee shipments normal despite missing forms
SINGAPORE, Dec 6 (Reuters) - Coffee shipments from Indonesia's main growing island of Sumatra have not been hit by a lack of official forms needed by traders to export commodities, industry sources said on Tuesday.
Earlier on Saturday, traders had said coffee, rubber and cocoa exports from Lampung port had stopped as the trade office had run out of certificate of origin (COO) forms.

Vietnam Dec coffee exports may triple to 150,000T-trade
HANOI, Dec 6 (Reuters) - Vietnam's coffee shipment this month could rise to between 110,000 tonnes and 150,000 tonnes, from 50,000 tonnes exported in November, due to ample supply at the harvest peak and higher demand for robusta beans, traders said on Tuesday.
"The shipment this month will contain newly harvested beans, with the volume from bonded warehouses accounting for a large part," a trader in Ho Chi Minh City said.

Brazil's exports of fine coffee climbing fast
SAO PAULO, Dec 5 (Reuters) - Brazil's exports of fine coffees will rise to almost one third of its arabica shipments in 2011, the exporter association said on Monday, because of the higher profits to be made from producing superior beans.
By the year's end shipments of specialty coffees will reach 7 million 60-kg bags, compared to 1 million in 2005, Guilherme Braga, the director of Brazil's Council of Green Coffee Exporters, Cecafe, told Reuters.

Ukraine produces 2.2 mln T sugar so far in 2011
KIEV, Dec 5 (Reuters) - Ukrainian sugar refineries produced about 2.2 million tonnes of white sugar from sugar beet as of Dec.5 or 44.5 percent more than at the same date in 2010, Ukraine's sugar union Ukrtsukor was quoted as saying on Monday.  
Interfax Ukraine news agency quoted Ukrtsukor data as showing that refineries had received about 17.4 million tonnes of sugar beet and processed 16.3 million tonnes.

Dry weather darkens cocoa outlook in west I.Coast
ABIDJAN, Dec 5 (Reuters) - Continued hot and dry weather in western Ivory Coast, a key cocoa growing region, heightened worries among farmers that supply could drop off starting early next year.
Ivory Coast is the world's top cocoa producer, accounting for more than a third of global supply, and much of the output comes from plantations in the west.

Oil Trades Near Three-Week High on U.S. Stockpile Drop, Possible Iran Ban (Source: Bloomberg)
Oil traded near a three-week high in New York as investors speculated global supplies will shrink after U.S. crude stockpiles fell and the European Union indicated it may ban imports of Iranian crude. Futures were little changed after advancing for a third day. Crude inventories declined 5.04 million barrels last week, according to the industry-funded American Petroleum Institute. The EU may have reached an agreement to ban oil imports from Iran in a clampdown on the country’s nuclear program, EU Energy Commissioner Guenther Oettinger said yesterday. Crude for January delivery traded at $101.26 a barrel, down 2 cents, in electronic trading on the New York Mercantile at 10:57 a.m. Sydney time. The contract yesterday rose 29 cents to $101.28, the highest close since Nov. 16. Prices are 14 percent higher this year after climbing 15 percent in 2010.

POLL-China top refineries to keep Dec crude runs at Nov level
BEIJING, Dec 6 (Reuters) - Top Chinese refineries will maintain their December crude oil throughput at last month's levels, as a sharp increase in crude runs in CNOOC's Huizhou refinery was offset by moderate cuts in several other plants on regular maintenance, a Reuters poll showed.
The 12 plants, which account for nearly a third of China's capacity and mostly lie in coastal regions, plan to process 2.93 million barrels per day (bpd) of crude oil this month, the same as the actual throughput volumes in November, which was the highest level in a year.

Shell strikes shale gas in China
DOHA, Dec 6 (Reuters) - Royal Dutch Shell Plc has found shale gas in China, a development that could cap imports in a market natural gas producers are hoping will drive demand.
An official with Shell's partner, PetroChina , a unit of the country's top energy group, state-owned CNPC, said  drilling results from two wells Shell drilled had been positive.

OPEC heading for oil target deal at near 30 mln bpd
DOHA/LONDON, Dec 5 (Reuters) - OPEC oil producers, at odds over supply policy since June, look set at a mid-December meeting to agree a new production target that legitimises current cartel output around 30 million barrels a day.  
OPEC's leading price hawk Iran, appears to have given up its campaign to have Gulf Arab nations including top producer Saudi Arabia cut back supply.

EU thinks twice about Iran oil ban
NEW DELHI/LONDON Dec 5 (Reuters) - The European Union is becoming sceptical about slapping sanctions on imports of Iranian oil, diplomats and traders say, as awareness grows that the embargo could damage its own economy without doing much to undercut to Iran's oil revenues.
Oil accounts for 50 percent of Iranian budget revenues, and those arguing for sanctions say they can deprive Tehran of billions of dollars and derail what the West sees as Iran's attempts to build a nuclear bomb.

Gold May Advance on European Debt Optimism; ETP Holdings Climb to Record (Source: Bloomberg)
Gold may gain for a second day, rising alongside equities and the euro, on optimism that European leaders are making progress in efforts to contain the region’s debt crisis. Palladium rose to the highest in a month. Gold for immediate delivery was little changed at $1,730.45 an ounce at 8:09 a.m. in Singapore. Holdings in exchange-traded products expanded to a record 2,358.206 metric tons yesterday, according to data compiled by Bloomberg. February-delivery bullion rose 0.2 percent to $1,734.70 on the Comex in New York. “Gold and silver drifted higher as the U.S. dollar (DXY) eased,” Lachlan Shaw, an analyst at Commonwealth Bank of Australia, said in an e-mail today. Trading is “thin” as investors wait for the European Union summit, he said. European officials are negotiating a bigger rescue effort to present at this week’s crisis summit in Brussels, including running two separate bailout funds simultaneously, the Financial Times reported yesterday, driving stocks and the euro higher.

20111207 0953 Soy Oil & Palm Oil Related News.

Reuters Survey :
Malaysia Nov 2011 Crude Palm Oil
- Imports seen up 86.5% at 75,000 tonnes
- Exports seen down 11.7% at 1.63 million tonnes from Oct 2011
- Stocks seen down 6.7% at 1.96 million tonnes from Oct 2011.
- Output seen down 15% at 1.62 million tonnes from Oct 2011.

Soybeans (Source: CME)
US soybean futures end slightly higher, rebounding from early losses thanks to support from corn. Soy fell along with ag futures generally in the early going, but rallied as corn bounced from 1-year lows. Uncertainty about the soy crop in South America, where forecasts are lacking rain, is also underpinning prices, although some traders are dismissive of those concerns. "There's been more talk this week of South American weather turning drier, but it's just talk," says Tim Hannagan of PFG Best. Farm Futures adds the market was supported early by talk of renewed Chinese demand. January CBOT soy ends up 3 1/4c at $11.29 1/2 a bushel.

Soybean Meal/Oil (Source: CME)
December soymeal rose $1.10 to $282.20/short ton. December soymeal, burdened by weaker crude oil, fell 0.09c to 49.98c/pound.

India's 2011-12 Soybean Output Seen At Record 11M Tons - USDA (Source: CME)
Indian soybean production is forecast to reach a record 11 million tons in marketing year 2011-12, the U.S. Department of Agriculture's New Delhi attache said, as favorable monsoon rains encouraged autumn planting of oilseeds. Soybeans were planted on a record 10.3 million hectares, the USDA said, an increase of 10% on the previous year. Favorable conditions helped extend the window for planting, contributing to higher autumn season soybean acreage in Madhya Pradesh, Maharashtra and Rajasthan. The USDA said farmers also increased planting of cotton, rice, sugarcane and castor crops, but showed less interest in coarse cereals and pulse crops. Conditions were less favorable for peanut and sunflower, but 2011-12 peanut production should reach 5.4 million tons from 5.3 million hectares, despite a 14% decrease in autumn planting. Meanwhile, 2011-12 sunflower production is forecast at 625,000 tons from 1 million hectares, assuming normal winter sown conditions.

Palm oil drops on S&P's possible euro zone downgrade
KUALA LUMPUR, Dec 6 (Reuters) - Malaysian palm oil futures dropped as the euro zone debt crisis deepened with Standard & Poor's warning it may cut the credit ratings of the region that is threatening to slow the world's economic growth.
"There is really no impetus for the market to move higher. The market is keeping its support level at 3,080 ringgit per tonne," said a trader with a foreign commodity brokerage.