20111208 1812 FCPO EOD Daily Chart Study.

FCPO closed : 3089, changed : -30 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : recovering, buyer testing market.
Support : 3070, 3050, 3020, 2970 level.
Resistance : 3100, 3150, 3200, 3250 level.
Comment :
FCPO closed recorded loss with shrinking volume changed hand. Overnight soy oil closed recorded loss and currently trading weaker while crude oil price trading little higher.
Concern over slowing demand and ahead of MPOB official data resulted traders to reduce exposure and staying sideline.
Daily chart formed a down doji bar candle stayed below middle Bollinger band level after market opened lower, edge upward higher for the first session followed and after lunch trading side ways before last hour falls to closed near the low of the day.
Chart reading adjusted to 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.

20111208 1743 FKLI EOD Daily Chart Study.

FKLI closed : 1469.5, changed : -15 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : weakenning, buyer seller on holiday mood.
Support : 1458, 1445, 1440, 1435 level.
Resistance : 1470, 1477, 1485, 1491 level.
Comment :
FKLI closed recorded loss with ultra low volume transacted doing about 3.5 points discount compare to cash market that closed lower. Overnight U.S. market closed firmer and today Asia markets ended lower while European markets currently trading higher.
Asia markets traded lower as investors choose to stay away ahead of Europena Union summit and slowing Japan machinery data while European markets trading higher on hope of further boosting measure from ECB.
Daily chart formed a small down bar candle closed nearer to middle Bollinger band level after market opened little lower, slide downward and move side way range bound to closed near the low of the day.
Chart study still 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.

20111208 1657 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.

20111208 1629 Global Market & Commodities Related News.

European Stock Futures Rise Amid ECB Hope (Bloomberg)
European stocks rose amid speculation the European Central Bank will announce measures to boost the economy as the region’s leaders meet to lay the foundations for a fiscal union. U.S. futures fluctuated and Asian shares fell. The benchmark Stoxx Europe 600 Index advanced 0.5 percent to 242.52 at 8:10 a.m. in London, halting a two-day decline. 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. “A rate cut of at least 25 basis points is expected from the ECB, but what may be more important is what will be said at the press conference,” said Robert Talbut, who helps oversee about $70 billion as chief investment officer at Royal London Asset Management Ltd. “We’re looking for words that the summit will bring forward early and significant additional policy from the ECB on bond buying. People will be hanging onto the words of any policy makers in the next 48 hours.”

FOREX - Euro holds breath before ECB, EU meetings
TOKYO, Dec 8 (Reuters) - The euro struggled to make much headway in Asia on Thursday and consolidated further ahead of an expected European Central Bank interest rate cut and a crucial EU leader summit that is to address the euro zone's two-year-old debt crisis.
The euro hovered at $1.3401 , roughly in the middle of its tight $1.3332-3486 range from the past week. It nudged as high as $1.3428 after the Nikkei business daily said the G20 was preparing a $600 billion lending facility for the IMF to help Europe, but the effect faded after it was denied by G20 and IMF officials.

China Nov commodities imports to rise; outlook uncertain
SHANGHAI, Dec 8 (Reuters) - China's import appetite for commodities ranging from crude oil to copper and soy likely improved in November because of lower prices, but global uncertainty and a slowdown in the world's second-largest economy could dampen demand in the months ahead.
Demand for power and a raft of raw materials such as oil products, cotton and aluminium is set to take a hit in the face of softer exports, particularly for textiles and electronics.

Malaysia's Nov palm oil stocks likey to fall for second month
KUALA LUMPUR, Dec 7 (Reuters) - Malaysian palm oil stocks likely fell for a second consecutive month in November, with the decline in production outpacing the drop in exports, a Reuters survey of seven plantation houses showed.
Stocks in the world's No.2 producer of the edible oil probably dropped 6.7 percent to 1.96 million tonnes from 2.1 million tonnes in October, the survey showed, with the pace of the decline rising but staying well below double-digits thanks to strong imports.

US wheat, corn extend losses; EU summit eyed
SINGAPORE, Dec 8 (Reuters) - U.S. wheat and corn futures extended losses as concerns about weakening demand resurfaced and speculators turned cautious ahead of a make-or-break European Union leaders summit to resolve the region's deteriorating debt crisis.
"It seems that for the past week, wheat is the one that has been more volatile. It's more prone to huge swings, more than corn. I think corn is supported at $5.80 level," said Lynette Tan, an analyst with Phillip Futures.

Vietnam 2012 coffee export to fall to 1 mln T-Vicofa
HO CHI MINH CITY, Dec 8 (Reuters) - Vietnam's coffee exports next year is forecast to fall 16.7 percent to 1 million tonnes, as more coffee is used at home to serve drinkers of the beverage and for more processing of instant coffee, a senior industry official said on Thursday.
"The export volume will fall because of rising domestic consumption and production of instant coffee," Chairman Luong Van Tu of the Vietnam Coffee and Cocoa Association said. He was referring to the calendar year ending December.

Vietnam coffee production hits peak, downtrend ahead-Vicofa
HO CHI MINH CITY, Dec 8 (Reuters) - Coffee production in Vietnam, the world's top robusta producer, has reached its peak, yielding around 1.2 million tonnes under the current 2011/2012 crop, and output would be declining in coming years, a senior industry official said on Thursday.
The Southeast Asian country is forecast to consume 100,000 tonnes in the current crop year, or 8.3 percent of the output, up from 7 percent in the previous season, Chairman Luong Van Tu of the Vietnam Coffee and Cocoa Association said.

Indonesia 2011/12 coffee output revised up, Colombia's cut-ICO
HO CHI MINH CITY, Dec 8 (Reuters) - The International Coffee Organization (ICO) has revised up coffee output from Indonesia, the world's third-biggest producer, under the current 2011/2012 crop to 8.75 million bags from 6.67 million bags estimated earlier.
Output from Colombia, the fourth-largest producer, is cut to 8.5 million bags under the current crop year, from 9.2 million bags in an earlier estimate, ICO Executive Director Roberio Oliveira Silva said in his slides to an international coffee conference on Thursday.

Argentina wheat crop estimate raised - Rosario
BUENOS AIRES, Dec 7 (Reuters) - Argentina's 2011/2012 wheat crop is expected to come in at 12.8 million tonnes, higher than an earlier forecast of 12.4 million tonnes due to improved weather conditions in a major wheat-producing region, the Rosario grains exchange said on Wednesday.
The exchange did not change its 2011/12 soy output forecast of 49.5 million tonnes and kept the corn output estimate for this season at 26 million tonnes.

Weather helping Brazil's next cane crop -CTC
SAO PAULO, Dec 7 (Reuters) - Favorable weather and a near 5 percent increase in planted area should lead to an increase in cane output in Brazil's center-south next season, sugar cane research center CTC said Wednesday.
Cane yields will rise after falling to their lowest level in 24 years this season, due to adverse weather since 2009 and the lack of investment in the replanting of cane fields with fresh, more productive stalks.

Brazil Nov green coffee exports down 8 pct vs yr ago
BRASILIA, Dec 7 (Reuters) - Brazil exported 2.7 million 60-kg bags of green coffee in November, nearly 8 percent less than in the same month of 2010, the Council of Green Coffee Exporters, Cecafe, said on Wednesday.
Brazil's 2011 harvest was smaller than last year's on account of a biennial cycle that causes output to rise and fall from one year to the next.

Ivorian Sifca to invest 56.5 mln euros to boost sugar
ABIDJAN, Dec 7 (Reuters) - Ivory Coast agro-industry group Sifca will invest 56.5 million euros ($75.6 million) in sugar planting and plantations to boost production by nearly a third from 2014 in order to satisfy local demand, the company's chairman said on Wednesday.
The project is aimed at reaching a maximum annual sugar cane production capacity of about 1 million tonnes, producing 115,000 tonnes of sugar, Jean Louis Billon told a news conference in Abidjan. Current production is about 87,000 tonnes.

Brent steady above $109 ahead of EU summit
SINGAPORE, Dec 8 (Reuters) - Brent crude was steady above $109, after a sharp fall in the previous session, as the market stayed cautious ahead of a summit to deal with Europe's sovereign debt crisis.
"Fundamentals are better than expected and the U.S. and Chinese economies seem to be stabilising, but trading will be cautious before Friday's Europe meeting," said Tetsu Emori, a fund manager with Astramax Co. in Tokyo.

Sinopec Guangzhou to run at least 250,000 bpd of crude in 2012
BEIJING, Dec 8 (Reuters) - Sinopec Corp's  Guangzhou refinery plans to process a record 250,000 to 253,000 barrels per day of crude oil and produce 220,000-223,000 tonnes of ethylene in 2012.
The plant formulated the plan during a company conference on Dec 2-4, according to a report posted on a Sinopec website.

German sugar crop going well, big output seen
HAMBURG, Dec 7 (Reuters) - Germany's sugar beet harvest is progressing very well in favourable weather and the country is likely to achieve the forecasts of a sharp rise in sugar output, the head of German sugar industry association WVZ told Reuters on Wednesday.
"Harvest progress is excellent and weather is favourable," said WVZ chief executive Dieter Langendorf. "Confidence is growing that we will achieve our production targets."

Vietnam's 2011/12 coffee output seen up, costs a concern
HO CHI MINH CITY, Dec 7 (Reuters) - Vietnam's coffee output from the 2011/2012 harvest due to end next month is likely to be 9 percent higher than the previous harvest, a senior industry executive said on Wednesday,  as farmers invest more in improving yields.
Output is expected to rise to 1.25 million tonnes, equivalent to 20.83 million bags, beating a previous forecast by Vietnam's coffee industry body. This could put pressure on global prices if supplies are released into the market quickly, though farmers are trying to hold on to stocks to avoid a glut.

LME copper treads water ahead of EU summit
SINGAPORE, Dec 8 (Reuters) - London copper futures were little changed, reflecting caution among investors ahead of a high-stakes European Union summit aimed at resolving a crippling euro zone debt crisis that has weighed on the outlook for global demand.
"Sentiment for industrial commodities appears to be a bit weaker ahead of these two key events," Robertson said.

China's annual iron ore demand 1.13 bln T by 2015
SHANGHAI, Dec 8 (Reuters) - China's annual iron ore demand is expected to rise more than 20 percent to 1.13 billion tonnes by 2015 due to strong steel production, media reported on Thursday, citing the Ministry of Industry and Information Technology.
Despite Beijing's efforts to restructure its economy to rely less on infrastructure spending, it will take time for the new economic model to take shape, which means domestic steel consumption would continue to grow at robust rates, the ministry said in a briefing on the steel sector's outlook.

China late Nov daily crude steel output 1.685 Mln T -CISA
SHANGHAI, Dec 8 (Reuters) - China's average daily crude steel output rose to 1.685 million tonnes in late November, rebounding for the first time in over a month, but doubts remain about underlying steel demand as the government's clampdown on the property sector remains firmly in place.
Chinese steelmakers are struggling with lower orders and swollen inventories and have conducted overhauls well as production cuts at their facilities.

China's annual iron ore demand 1.13 bln T by 2015
SHANGHAI, Dec 8 (Reuters) - China's annual iron ore demand is expected to rise more than 20 percent to 1.13 billion tonnes by 2015 due to strong steel production, media reported on Thursday, citing the Ministry of Industry and Information Technology.
Despite Beijing's efforts to restructure its economy to rely less on infrastructure spending, it will take time for the new economic model to take shape, which means domestic steel consumption would continue to grow at robust rates, the ministry said in a briefing on the steel sector's outlook.

Copper miners face higher smelting fees in 2012-CRU
LONDON, Dec 7 (Reuters) - Recent agreements by Freeport McMoRan Copper & Gold  to pay higher processing fees have paved the way for higher benchmark prices next year by eroding the bargaining power of other global miners, a CRU Group consultant said on Wednesday.
Freeport agreed to a 12.4 percent increase in the fees it pays smelters to process its ore.

Copper miners face higher smelting fees in 2012-CRU
LONDON, Dec 7 (Reuters) - Recent agreements by Freeport McMoRan Copper & Gold  to pay higher processing fees have paved the way for higher benchmark prices next year by eroding the bargaining power of other global miners, a CRU Group consultant said on Wednesday.
Freeport agreed to a 12.4 percent increase in the fees it pays smelters to process its ore.

Colombia minister opposes mining, oil tax
BOGOTA, Dec 7 (Reuters) - Colombia's Energy Minister Mauricio Cardenas said he would oppose an effort in Congress to levy a tax on mining and crude exports that would ensure environmental standards are met.
Cardenas in an interview late on Tuesday said he was unaware that lawmakers planned to seek the tax as part of a wider tax reform bill but that he would be "completely" against changing the "rules of the game" for oil and mining companies in Colombia.

METALS - LME copper treads water ahead of EU summit
SINGAPORE, Dec 8 (Reuters) - London copper futures were little changed on Thursday, reflecting caution among investors ahead of a high-stakes European Union summit aimed at resolving a crippling euro zone debt crisis that has weighed on the outlook for global demand.
Trading was also tepid ahead of a slew of Chinese data, including inflation and industrial output, to be released on Friday, although analysts say weaker numbers may prompt Beijing to cut bank reserve requirement further, which could boost commodity prices.

PRECIOUS - Gold edges down as investors fret over Europe
SINGAPORE, Dec 8 (Reuters) - Gold inched lower on Thursday, along with equities, as concerns set in about whether European leaders would be able to come up with a concrete plan to contain the region's crippling debt crisis at a crucial summit on Friday.
Hopes for a definitive plan to tackle the two-year-old euro zone debt crisis were feeble a day before the key EU summit, echoed by comments from a senior German official and new figures exposing deepening stress among Europe's banks.

Gold edges down as investors fret over Europe
SINGAPORE, Dec 8 (Reuters) - Gold inched lower, along with equities, as concerns set in about whether European leaders would be able to come up with a concrete plan to contain the region's crippling debt crisis at a crucial summit on Friday.
"A final solution out of Europe is highly unlikely," Jeremy Friesen, Commodity Strategist at Societe Generale in Hong Kong, said, but added that a serious misstep also looked unlikely as central banks and finance ministries have shown the will to cooperate to fight the crisis, which is threatening to split up the euro zone and sink the global economy into recession.

20111208 1107 Global Market & Commodities Related News.

GLOBAL MARKETS-Shares, euro drift lower as EU summit jitters weigh
SINGAPORE, Dec 8 (Reuters) - Asian shares and the euro drifted down on Thursday as investors fretted over whether European leaders can agree a plan to tackle the euro zone's two-year-old debt crisis at a make-or-break summit this week.
A report that the G20 was preparing a $600 billion lending facility for the International Monetary Fund (IMF) to help Europe gave a late lift to U.S. stocks and briefly boosted the euro, but the effect faded after it was denied by G20 and IMF officials.

Asia Stocks Fall on Data, Before EU Summit (Bloomberg)
Asian stocks (MXAPJ) dropped ahead of a European summit on the region’s sovereign debt crisis, and as economic data from Japan and Australia signaled the global economy is slowing. Tokyo Electric Power Co., the operator of the power plant at the center of the biggest nuclear disaster in 25 years, sank 9.1 percent after the Mainichi newspaper reported it may be effectively nationalized. Fanuc Corp. (6954), a maker of industrial robots, slid 1 percent in Tokyo. LG Electronics Inc. (066570), a home appliances maker that gets more than a fifth of its revenue from Europe, fell 3.6 percent in Seoul. City Developments Ltd. (CIT), Singapore’s second-biggest real- estate company by market value, led declines among the city’s property developers after the government imposed additional taxes on purchases of private residential property.

COMMODITIES-European meetings weigh on complex, gold rises
NEW YORK, Dec 7 (Reuters) - Gold moved higher on Wednesday, while copper and U.S. grains fell amid ongoing nervousness about the euro zone economic crisis and pessimism ahead of Friday's EU summit.
"Such a big unknown event risk is making people quite cautious and, heading into year-end as well, no one really wants to take any positions and it adds to that lack of interest in the market," said Standard Chartered analyst Daniel Smith.

Oil falls on higher U.S. stocks, EU worries
NEW YORK, Dec 7 (Reuters) - Crude futures fell back on  Wednesday, weighed down by an unexpected increase in U.S.  stockpiles and doubts that a credible deal to resolve Europe's   debt crisis will be reached at a summit on Friday.
"The market seems unwilling to fall too far ahead of the EU meeting and the euro has bounced back also," said Tom Bentz, director at BNP Paribas Prime Brokerage Inc in New York.

China wants Sudan oil deal by Christmas -special envoy
JUBA, Dec. 7 (Reuters) China is pressing Sudan and South Sudan to resolve a row over oil transit fees by late December to prevent more export disruptions from the newly separate nations, China's special envoy said on Wednesday.
South Sudan, which seceded from the North in July, pumps around 75 percent of the formerly united country's roughly 500,000 barrels per day of oil output.

NYMEX-Natural gas ends down on mild forecast, high supply
NEW YORK, Dec 7 (Reuters) - U.S. natural gas futures ended  lower on Tuesday, as record-high supplies and fairly mild  extended weather forecasts pressured the complex despite some  cold this week in Texas and parts of the South.
"Weather drives the market right now, and expectations for  above normal temps in the East region have provided the  downside," said Eric Bickel, analyst at Summit Energy.

20111208 1050 Global Economic Related News.

Singapore: Additional property taxes to cool prices, curb economic risk
Singapore imposed additional taxes on purchases of private residential property to curb excessive investment that may spur economic and banking-industry risks. Foreigners and corporate entities will have to pay an additional 10% stamp duty, the government said in a statement yesterday. The extra levy will be 3% for permanent residents purchasing a second home, as well as for citizens buying their third residential property. The taxes apply from today. (Bloomberg)

China: November export growth was lower than the previous month, Chong Quan, the country's deputy international trade representative, said after a briefing in Beijing. "The situation is quite serious," he said, responding to a question on exports. China's exports rose 15.9% YoY in October. (Source: Bloomberg)

India: Halts plan to allow Wal-Mart in “political suicide”
India suspended its decision to allow overseas retailers including Wal-Mart Stores Inc. to open supermarkets, dealing a blow to Prime Minister Manmohan Singh’s efforts to boost foreign investment and end a policy paralysis. The government reversed its decision amid protests by the opposition and its allies that forced repeated adjournments of parliament for the last two weeks. Both houses resumed today with 10 days left of a crucial session when the government is looking to pass laws including one setting up an anti-graft body. (Bloomberg)

Australia: Economy grew faster than estimated last quarter on consumer spending and mining-driven investment. GDP rose 1% QoQ in the three months ended Sept. 30, after growing a revised 1.4% QoQ the prior quarter, the fastest pace in four years. (Source: Bloomberg)

Germany: Factories weather debt turmoil hurting region. German industrial production rose more than economists forecast in October. Production climbed 0.8% MoM from September, when it dropped 2.8% MoM, the Economy Ministry in Berlin said. (Source: Bloomberg)

EU: ECB said to consider more measures to stimulate bank lending
The European Central Bank may announce a range of measures today to stimulate bank lending, said three euro-area officials with knowledge of policy makers’ deliberations. Options on the table include loosening collateral criteria so that institutions have more access to cheap ECB cash and offering them longer-term loans to grease the flow of credit to the economy, said the officials, who spoke on condition of anonymity because the discussions are private. Two said an interest rate cut is likely, with only the size of the reduction to be determined for the monthly decision today. (Bloomberg)

EU: Euro rescue fund to start short-term debt sales this month
The euro area’s rescue fund plans to begin selling short-term debt by the end of the month to meet its expanded role in tackling the region’s debt crisis. The EUR440bn (USD589bn) European Financial Stability Facility announced a funding program that will focus on three-, six- and 12-month bills. The first auction is expected to take place before year-end, the EFSF said in a statement yesterday. The Luxembourg-based EFSF gained the authority in October to buy sovereign bonds on the primary and secondary markets, offer credit lines to governments and grant aid to banks as the region’s debt troubles spread. The EFSF’s sole role until then had been to sell bonds to finance rescue loans. (Bloomberg)

UK: October manufacturing output drops more than forecast
UK’s manufacturing output fell more than economists forecast in October as the intensifying euro-area debt crisis undermined demand in Britain’s biggest export market. Factory output dropped 0.7 percent from September, the biggest decline since April, the Office for National Statistics said yesterday. On the year, manufacturing rose 0.3%, the least since January 2010. Manufacturers are suffering as the sovereign debt crisis and a cooling global economy jeopardize the outlook for exports. (Bloomberg)

US: Consumer credit rose in October to two-year high
US consumer borrowing rose in October to the highest level in two years, propelled by gains in non-revolving debt like auto and student loans. Credit increased by USD7.65bn to USD2.46trn, the most since October 2009, Federal Reserve figures showed yesterday. The data indicate consumers are relying more on credit to sustain spending as income gains fail to keep up with inflation and home prices drop. At the same time, increasing employment may be making Americans more willing to take on more debt heading into the holiday shopping season. (Bloomberg)

20111208 1049 Malaysia Corporate Related News.

Back into the black in 2013 for MAS?
Malaysian Airline System (MAS) aims to fly back into the black by 2013 through an aggressive capacity cutting exercise. It could be the largest in the airline’s history. Group CEO Ahmad Jauhari Yahya said MAS has taken a leaf out of the book of airlines like Japan Airlines and Garuda, which suggests that aggressive network cuts work in turning around a bleeding airline. (Financial Daily).

Sanichi secures coal supply deal
ACE Market-listed Sanichi Technology has secured a coal supply commitment and collaboration agreement from Kalimantan-based CV Permata Al Zahra for the supply of 3m tonnes of coal per annum for a two-year term from Tuesday. On a separate announcement, Sanichi said it had agreed with FIRC Trade (M) SB to enter into a collaboration framework agreement for the purpose of forming an alliance to venture into the business of minerals mining and supply. (Financial Daily)

Pavilion REIT seeks opportunities for local expansion
Pavilion Real Estate Investment Trust (Pavilion REIT), Malaysia’s largest retail REIT, is seeking opportunity to expand its assets in Penang, Johor, and the Klang Valley. Pavilion REIT’s manager, Pavilion REIT Management SB, chief executive officer Philip Ho said:”As a retail REIT, our duty is to acquire malls to build up the portfolio,” “We will evaluate any financially viable investment opportunity that comes around,” he told a media conference after the official listing of Pavilion REIT on the Main Market of Bursa Malaysia in Kuala Lumpur yesterday. (Malaysian Reserve)

Astral Asia’s SLLKPP acquires more land for KuHTP development
Astral Asia’s 65%-owned subsidiary, Syarikat Ladang LKPP (SLLKPP), has entered into a sale and purchase agreement with Lembaga Kemajuan Perusahaan Pertanian Negeri Pahang for the proposed acquisition of leased land in Pahang for RM1.8m. In an exchange filing yesterday, the company said the land is adjacent to the proposed Kuantan Hi-Tech Park development (KuHTP) which measures approximately 2,433 acres. (Malaysian Reserve)

Toyo Ink to start R&D on Vietnam power plant
Toyo Ink has been given the green light to start research and development on the proposed USD2.5bn Song Hau 2 Thermo power plant project in Vietnam. The company told Bursa Malaysia yesterday that it had received notification for this on Tuesday from the Vietnamese government. The proposed plant will have a capacity of 2x1000 MW and will be located at Song Hau Power Centre, Hau Giang Povince. (StarBiz)

Bank Islam eyes M&As in Indonesia and Bangladesh
Bank Islam Malaysia is eyeing opportunities for expansion in Indonesia and Bangladesh, which have sizeable Muslim populations and adequate Islamic banking regulatory policy and supporting infrastructure for syariah-based financing and banking operations. Managing director Datuk Seri Zukri Samad said as mergers and acquisitions (M&As) were on Bank Islam’s agenda for growth, the bank was on the lookout for suitable candidates but had not initiated any discussions. (StarBiz)

Boustead unit forms JV with Eurocopter
Boustead Heavy Industries’ (BHIC) wholly-owned subsidiary, BHIC Defence Technologies SB, and Eurocopter Malaysia SB intend to set up a joint-venture (JC) to undertake helicopter pilot training services to military and civil markets in the Asian region, according to a filing to Bursa Malaysia yesterday. (Malaysian Reserve)

DRB Hicom: DRB Hicom, Volkswagen likely to have a share control in Proton. DRB Hicom Bhd's bid for control over Proton Holdings is likely to include the presence of Volkswagen AG at a later stage according to a reliable source. DRB Hicom's plan is to first secure a controlling block in Proton and subsequently divest some of its equity to Volkswagen resulting in both parties sharing control. (Source: The Star)

Bumi Armada: To get USD300m loans. Offshore oilfield services provider Bumi Armada Bhd will sign agreements for financing facilities exceeding USD300m (RM936.69m) today. The agreement is with several financial institutions, which are not named in the note. (Source: The Star)

Media: The Malay Mail to hit the streets in the morning. The Malay Mail will hit the streets as a mainstream morning national newspaper starting January. It promises a good read, including investigative reporting on issues of concern to readers, led by its editor (news) Terence Fernandez. (Source: Malaysian Reserve)

20111208 1027 Global Market Related News.

Asia Stocks Fall Ahead of European Debt Summit (Source: Bloomberg)
Asian stocks dropped after Japan’s machinery orders unexpectedly fell in October, and ahead of a European summit on the region’s sovereign debt crisis. Tokyo Electric Power Co., the operator of the power plant at the center of the biggest nuclear disaster in 25 years, sank 9.5 percent after the Mainichi newspaper reported it may be effectively nationalized. Fanuc Corp. (6954), a maker of industrial robots, slid 0.6 percent in Tokyo. LG Electronics Inc. (066570), a home appliances maker that gets more than a fifth of its revenue from Europe, fell 3.3 percent in Seoul. The MSCI Asia Pacific Index (MXAP) slid 0.4 percent to 117.66 as of 10:07 a.m. in Tokyo. All but one of 10 industry groups on the measure dropped, with more than twice as many stocks (MXAPJ) declining as advancing.

U.S. Stocks Rise Amid Optimism on Europe Efforts to Fight Crisis (Source: Bloomberg)
U.S. stocks rose, sending the Dow Jones Industrial Average to the highest level since October, amid optimism that European leaders will announce further efforts to halt the debt crisis at a summit this week. JPMorgan (JPM) Chase & Co. and Bank of America Corp. rose at least 1.9 percent to lead gains in the Dow. Financial shares increased the most among groups in the Standard & Poor’s 500 Index, rallying 1.2 percent after an earlier loss. Caterpillar Inc. (CAT) dropped 1.1 percent, pacing declines among industrial companies, while Peabody Energy Corp. fell 3.4 percent after Goldman Sachs Group Inc. cut its ratings on coal producers. The S&P 500 climbed 0.2 percent to 1,261.01 at 4 p.m. New York time, after dropping as much as 1.1 percent earlier. The benchmark gauge for American equities advanced 1.1 percent over the previous two sessions. The Dow rose 46.24 points, or 0.4 percent, to 12,196.37.

European Stocks Decline After Germany Rejects Combining Euro Bailout Funds (Source: Bloomberg)
European stocks dropped after Germany rejected combining the current and permanent euro-area rescue funds and expressed pessimism over the outcome of a European Union summit this week. Banca Monte dei Paschi di Siena SpA (BMPS), Italy’s third-biggest bank, led a drop among lenders. ING Groep NV (INGA) fell 4.7 percent after saying it plans to take a charge related to its U.S. annuity business. Airline shares slid after the International Air Transport Association forecast a decline in industry profits in 2012. The benchmark Stoxx Europe 600 Index retreated 0.2 percent to 241.44 at the close in London, after earlier gaining as much as 1.2 percent. The gauge last week posted its biggest rally since November 2008 as central banks lowered the interest rate on dollar funding and China reduced its reserve ratio for banks. The Stoxx 600 slipped 0.3 percent yesterday after Standard & Poor’s put 15 euro-area nations on review for a potential downgrade.

German Stocks Retreat as Government Rejects Running Bailout Funds Together (Source: Bloomberg)
German stocks (UKX) declined before a European Union summit this week as Chancellor Angela Merkel’s government said it will prevent the euro area from running its temporary rescue fund alongside its permanent bailout facility. Metro AG (MEO), Germany’s largest retailer, retreated for a second day after analysts downgraded the stock. Deutsche Lufthansa AG (LHA) fell 3.9 percent as the International Air Transport Association reduced its forecast for airlines’ profit. The DAX Index (DAX) dropped 0.6 percent to 5,994.73 at the close in Frankfurt, having earlier climbed as much as 1.8 percent. The benchmark measure retreated 1.3 percent yesterday as Standard & Poor’s put 15 euro-area nations on watch for potential rating downgrades. The broader HDAX Index also declined 0.6 percent today.

Japan Stocks Fall Before European Debt Summmit as Machinery Orders Drop (Source: Bloomberg)
Japanese stocks (TPX) declined after the nation’s machinery orders unexpectedly fell for a second straight month and before a European summit on the debt crisis. Fanuc Corp., Japan’s biggest maker of industrial robots, slid 1.2 percent. Tokyo Electric Power Co., owner of the crippled Fukushima Dai-Ichi nuclear power plant, plunged 14 percent after a report it may effectively be nationalized. Mitsubishi Corp., the country’s biggest commodities trader, fell 1.4 percent after oil and metals prices dropped. The Nikkei 225 Stock Average fell 0.7 percent to 8,658.12 as of 9:28 a.m. in Tokyo. The broader Topix lost 0.5 percent to 745.88, with about eight shares dropping for every five that gained.

DJIA 14,000 Depends on U.S. Saying We’re All in This Together With Europe (Source: Bloomberg)
Never before has the euro influenced U.S. stocks as much as this year, a sign that American equities aren’t going anywhere until Europe’s credit crisis is solved. The link between the Dow Jones Industrial Average and swings in the currency reached a record on Dec. 2, according to data compiled by Bloomberg. The so-called correlation coefficient showing how much two markets rise and fall in tandem hit 0.85, the highest level since the euro was founded in 1999, data on 60-day rolling averages show. A reading of 1 means assets are moving in lockstep. Speculation about whether Greece, Ireland and Portugal will avoid default is drowning out results from companies such as Akron, Ohio-based Goodyear Tire & Rubber Co. and Target Corp. in Minneapolis. While record earnings (SPX) and an improving economy should be pushing the Dow toward its October 2007 record of 14,164.53, they’re not because Europe is overshadowing the good news, said Kevin Rendino, a money manager at New York-based BlackRock Inc.

Consumer Credit in U.S. Increases to Two-Year High on Auto, Student Loans (Source: Bloomberg)
U.S. consumer borrowing rose in October to the highest level in two years, propelled by gains in non-revolving debt like auto and student loans. Credit increased by $7.65 billion to $2.46 trillion, the most since October 2009, Federal Reserve figures showed today in Washington. The advance was in line with the median forecast of economists surveyed by Bloomberg News that projected a $7 billion gain. The data indicate consumers are relying more on credit to sustain spending as income gains fail to keep up with inflation and home prices drop. At the same time, increasing employment may be making Americans more willing to take on more debt heading into the holiday shopping season.

Tax Inflow Shows Consumers in U.S. May Spend More Than Estimated: Economy (Source: Bloomberg)
Rising tax receipts show household incomes in the U.S. are growing faster than currently estimated, and by enough to sustain consumer spending, according to economists like Joe LaVorgna. Tax revenue from employee pay was up 4.8 percent in the third quarter from a year earlier after adjusting for changes in withholding rates over the past few years, said LaVorgna, who is the chief U.S. economist at Deutsche Bank Securities Inc. in New York. By contrast, the Commerce Department’s figures show wages and salaries climbed 2.9 percent over the same period. Taxes more accurately reflect the state of the job market because they are not subject to revision and workers don’t pay the Internal Revenue Service on “phantom” wages, LaVorgna said in a note to clients yesterday. The revenue numbers also mean the latest readings on savings are too low, eliminating another obstacle to a pickup in household purchases, he said.

Singapore Imposes More Property Taxes to Cool Prices, Curb Economic Risks (Source: Bloomberg)
Singapore imposed additional taxes on purchases of private residential property to curb excessive investment that may spur economic and banking-industry risks. Foreigners and corporate entities will have to pay an additional 10 percent stamp duty, the government said in a statement yesterday. The extra levy will be 3 percent for permanent residents purchasing a second home, as well as for citizens buying their third residential property. The taxes apply from today. “We have always had open markets and must keep them that way,” Finance Minister Tharman Shanmugaratnam said in the statement. “However, the reality is that investment flows into our property market are now larger than before, and unlikely to recede as long as interest rates remain low. The additional buyer’s stamp duty should help cool investment demand, and avoid the prospect of a major, destabilizing correction further down the road.”

Japan Machinery Orders Unexpectedly Slide on Strong Yen, Global Slowdown (Source: Bloomberg)
Japan’s machinery orders unexpectedly fell for a second straight month in October, signaling that a slowing global economy and the strong yen are prompting companies to postpone investment. Bookings, an indicator of capital spending, decreased 6.9 percent from a month earlier, the Cabinet Office said in Tokyo today. The median forecast of 27 economists surveyed by Bloomberg News was for a 0.5 percent gain. Orders fell 8.2 percent in September. Today’s report indicates that capital expenditure could slow next year as Japan struggles to recover from the March 11 earthquake and tsunami. Prime Minister Yoshihiko Noda ordered a fourth extra budget last week, a step unseen since postwar reconstruction, to shore up an economy threatened by the strong yen, floods in Thailand and financial turmoil in Europe.

Bank of Korea Holds Rate for Sixth Month (Source: Bloomberg)
The Bank of Korea refrained from raising borrowing costs for a sixth straight month as the deepening European debt crisis and global slowdown imperil exports and growth. Governor Kim Choong Soo and his board kept the benchmark seven-day repurchase rate unchanged at 3.25 percent, the central bank said in a statement in Seoul today. The decision was predicted by all 16 economists surveyed by Bloomberg News. South Korea joins efforts from China to Indonesia to Australia to shield Asia-Pacific economies from the European debt crisis. The Bank of Korea may lower its growth outlook for this year and next because of the global economic slowdown this week, Lee Jong Kyu, deputy director-general at the bank, said in an interview in Bali on Dec. 2.

German Factories Weather Debt Turmoil Hurting Region: Economy (Source: Bloomberg)
German industrial production rose more than economists forecast in October as factories weathered debt turmoil that hurt output in other countries across the region and threatens to push it into a recession. Production climbed 0.8 percent from September, when it dropped 2.8 percent, the Economy Ministry in Berlin said today. Economists forecast a 0.3 percent increase, according to the median of 33 estimates in a Bloomberg News survey. Separate reports showed industrial output declined in the U.K., Italy and Norway. Europe’s two-year-old debt crisis has damped demand for German goods, increasing the chance that the economy will contract. Still, factory orders rebounded 5.2 percent in October, the ministry said yesterday, and business confidence and hiring increased in November, suggesting domestic consumption may help Germany weather the downturn.

ECB May Dig Deeper Into Crisis Toolbox as Leaders Mark ‘Date With Destiny’ (Source: Bloomberg)
The European Central Bank may delve deeper into its toolbox today to stimulate bank lending and fight off a recession as Europe’s leaders gather to lay the foundations for a fiscal union. ECB policy makers meeting in Frankfurt will cut the benchmark interest rate by a quarter percentage point to 1 percent, according to 53 of 58 economists in a Bloomberg News survey. They may also loosen collateral criteria to give banks greater access to cheap cash and offer longer-term loans, said three euro-area officials with knowledge of the deliberations. Hours later, Europe’s leaders will convene in Brussels for talks to frame the fifth “comprehensive” solution in 19 months to a debt crisis that’s left Germany and France facing the threat of losing their AAA rating from Standard & Poor’s. The ECB says that governments must address the cause of the turmoil as it focuses on getting banks lending again rather than increasing purchases of indebted nations’ bonds.

Draghi Courts Bundesbank in Bid to Avoid Trichet’s Fate on Bond Purchases (Source: Bloomberg)
Mario Draghi knows he can’t afford to repeat Jean-Claude Trichet’s mistake. A month into his term as European Central Bank president, Draghi is being careful not to alienate Bundesbank chief Jens Weidmann, a vocal opponent of the ECB’s bond purchases. As Europe’s sovereign debt turmoil enters what could be its decisive days, Draghi needs to keep Germany’s central banker onside for any expansion of the ECB’s crisis-fighting role, say economists from Barclays Capital to Societe Generale SA. “Draghi is likely to be very conscious and aware of the Bundesbank’s perspective,” said Julian Callow, chief European economist at Barclays in London. “It’s going to be a hard act for Draghi to balance strong views for dramatic action and calls from Weidmann for a more cautious approach.”

Euro-Area Rescue Fund to Start Short-Term Debt Sales by End of This Month (Source: Bloomberg)
The euro area’s rescue fund plans to begin selling short-term debt by the end of the month to meet its expanded role in tackling the region’s debt crisis. The 440 billion-euro ($589 billion) European Financial Stability Facility announced a funding program that will focus on three-, six- and 12-month bills. The first auction is expected to take place before year-end, the EFSF said in an e- mailed statement today. The Luxembourg-based EFSF gained the authority in October to buy sovereign bonds on the primary and secondary markets, offer credit lines to governments and grant aid to banks as the region’s debt troubles spread. The EFSF’s sole role until then had been to sell bonds to finance rescue loans.

Euro Nations Lose One Nation by Biggest Plurality in Global Investor Poll (Source: Bloomberg)
Most international investors predict at least one nation will eventually dump the euro and they say greater fiscal ties or a smaller currency area are the best fixes for the region’s debt crisis, according to the quarterly Bloomberg Global Poll. As Europe’s leaders craft their fifth “comprehensive” solution in 19 months, almost half the respondents in the poll conducted Dec. 5-6 say one or more countries will leave the 17- nation bloc within a year and almost a third more predict an exit by the end of 2016. Thirty-seven percent say fiscal union is the most effective remedy for the current turmoil, with 24 percent endorsing a shrinking of the euro’s membership. The poll of 1,097 investors, traders and analysts who are Bloomberg subscribers highlights the pressure on European policy makers as they meet in Brussels this week to consider tougher budget rules under a Dec. 5 threat by Standard & Poor’s to downgrade 15 euro nations. The survey also validates European Central Bank President Mario Draghi’s push for a “fiscal compact,” with just 15 percent of respondents saying so-called quantitative easing is the top measure for ending the turmoil.

ECB Officials Said to Plan Additional Measures to Stimulate Bank Lending (Source: Bloomberg)
The European Central Bank may announce a range of measures tomorrow to stimulate bank lending, said three euro-area officials with knowledge of policy makers’ deliberations. Options on the table include loosening collateral criteria so that institutions have more access to cheap ECB cash and offering them longer-term loans to grease the flow of credit to the economy, said the officials, who spoke on condition of anonymity because the discussions are private. Two said an interest rate cut is likely, with only the size of the reduction to be determined for the monthly decision tomorrow. The ECB is focusing on getting banks lending again rather than increasing its government bond purchases to fight Europe’s debt crisis. The central bank’s insistence that governments take measures to restore investor confidence appears to have paid dividends, with Italian and Spanish yields plunging after Germany and France agreed to move the 17-nation euro area toward a fiscal union, a stance they reiterated today.

Australia Unexpectedly Shed 6,300 Jobs (Source: Bloomberg)
Australian employers unexpectedly reduced their payrolls in November as heightened risks to the global economy and a strong currency prompted the biggest cut in full-time jobs since April. The local currency retreated. The number of people employed fell by 6,300 after a revised increase of 16,800 in October, the statistics bureau said in Sydney today. The median estimate in a Bloomberg News survey of 22 economists was for a 10,000 advance. The jobless rate rose to 5.3 percent from 5.2 percent. The data show the nation’s economy, which expanded more than forecast last quarter, may be succumbing to Europe’s sovereign-debt crisis. Traders boosted bets that Reserve Bank Governor Glenn Stevens will follow this week’s interest-rate cut with more next year.

20111208 1026 Global Commodities Related News.

Corn (Source: CME)
US corn futures end slightly lower on outside market pressure and lackluster demand. The market unable to extend Tuesday's gains, as a stronger US dollar and worries about Europe's debt crisis sends commodites lower. Traders unlikely to have little fresh news to digest until Friday, when USDA issues its monthly supply/demand report. Weak export demand hangs over the market helping limit market's upside, traders add. CBOT Dec. corn ends down 3c to $5.82 1/4 while March corn closes down 3 3/4c to $5.92 3/4.

Wheat (Source: CME)
US wheat futures slide on poor exports and a stronger dollar. Plentiful world supplies are causing headaches for US exporters as customers look elsewhere for cheaper supplies. Meanwhile, traders are expecting little change from the USDA's latest report--due Friday--and see little reason to buy, particularly given a stronger dollar and ongoing worries about Europe's debt crisis. CBOT December wheat ends down 15 3/4c at $5.83/bushel as KCBT December falls 14 3/4c to $6.52 1/4 and MGEX December slides 7 1/2c to $8.46 3/4.

Rice (Source: CME)
US rice futures end lower, relinquishing yesterday's gains amid weak demand and pressure from a stronger US dollar; USD weighed on commodities broadly today. Rice futures are down 17% since late October, thanks to poor demand. CBOT Jan rice ends down 21c, or 1.4%, to $14.38 1/2 per hundredweight.

Wheat Prices Shredded With Near-Record Crop Boosting Reserves: Commodities (Source: Bloomberg)
The biggest slump in wheat prices in three years may have further to go as expanding harvests from Russia to Canada bolster inventories to the most in a decade. The U.S. Department of Agriculture will predict tomorrow a 3.4 percent gain in stockpiles to 202.89 million metric tons by June, according to the average of 16 analyst estimates compiled by Bloomberg. Prices that fell 34 percent from a 29-month high of $9.1675 a bushel in February will drop 12 percent more to $5.30 in the next 12 months, Credit Suisse Group AG forecasts. Global food costs tracked by the United Nations have declined 9.1 percent from a record in February, helping to contain inflation as economic growth slows. Corn and soybeans are also tumbling after farmers responded to record-high prices by planting more crops. Combined output of wheat, corn and soy will jump 3.4 percent to a record 1.8 billion tons this season, 32 percent more than a decade ago, the USDA said last month.

U.S. corn, soybeans up on Europe hopes, bargain hunting
SINGAPORE, Dec 7 (Reuters) - U.S. corn and soybeans rose as recent declines spurred bargain hunting, while cautious optimism ahead of a EU summit where policymakers are expected to find a way to resolve the region's debt crisis also supported sentiment.
"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.

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.

Russia seen exporting no less than 25 mln tonnes of grain
MOSCOW, Dec 7 (Reuters) - Russia is expected to export no less than 25 million tonnes of grain in the current 2011/12 season, deputy agriculture minister Alexander Solovyov said on Wednesday.
"Exports this year are expected to be no less than 25 million tonnes, which will be a record volume," he told an international grain forum.

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.

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.

Thai 2012 rice exports may halve, market share at risk
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 its prices up.

S.Africa's weekly white maize exports down
JOHANNESBURG, Dec 6 (Reuters) - South Africa exported 34,858 tonnes of white maize last week compared with 53,988 tonnes in the previous week, the South African Grain Information Service (SAGIS) said on Tuesday.
Exports of yellow maize were recorded at 3,223 tonnes, compared with 2,974 tonnes in the week before, SAGIS said on its website, www.sagis.org.za.

ICE coffee, sugar steady, cautious optimism over euro
LONDON, Dec 7 (Reuters) - ICE coffee and sugar were steady in early trade and cocoa hovered above a 3-year low, buoyed by growing confidence that euro zone leaders are on track to produce a package of measures to solve the debt crisis at their Friday summit.
Arabica coffee futures were slightly lower, with a softer dollar underpinning the commodities complex.

India coffee exports seen falling 15 pct in 2011-12
NEW DELHI, Dec 7 (Reuters) - Coffee exports from India, the world's sixth-biggest producer, were expected to fall some 15 percent in 2011-12, Coffee Board Chairman Jawaid Akhtar said on Wednesday, because of rising consumption at home.
Akhtar said exports for the year ending March 31, 2012 were seen between 240,000 and 250,000 tonnes against 294,000 tonnes a year ago.

Demand, price outlook in focus at Vietnam coffee meet
HANOI/SINGAPORE, Dec 5 (Reuters) - Ample robusta supply, uncertainties over a plan by major producer Vietnam to stockpile to prevent another price fall and demand outlook at a time of global economic slowdown will take centre stage at an industry conference this week.
London robusta  has bounced from an 11-month low reached in November, but gains were mostly driven by rallies in New York arabica futures as heavy rains drenched plantations in  Colombia, the world's top producer of the high-quality variety.

Vietnam's 2011/12 coffee output seen rising 9 pct
HO CHI MINH CITY, Dec 7 (Reuters) - Vietnam's coffee output from the 2011/2012 harvest due to end next month is likely to be 9 percent higher than the previous harvest, a senior industry executive said on Wednesday.
Output is expected to rise to 1.25 million tonnes, equivalent to 20.83 million bags, beating a previous forecast by Vietnam's coffee industry body which could put pressure on global prices if the stocks are released into the market quickly.


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.
S&P said it might cut the ratings of countries including Germany and France if no convincing plan emerges this week to solve the debt crisis. European Union leaders will meet on Friday, and investors hope a solution will result from this summit.

S.Africa coal exports surge at worst time
LONDON, Dec 5 (Reuters) - South Africa's coal exports are surging into 2012 just when top spot buyers China and India are out of the market and supply bottlenecks elsewhere have eased, so it will have to fight for market share, eroding prices in a fundamentally weak landscape.
South Africa has the port capacity to export 81 million tonnes a year of coal from Richards Bay Coal Terminal but in recent years the tonnage shipped has been far lower at around 64 million tonnes due to rail bottlenecks.

Saudi crude output 10.047 mln bpd in Nov-senior official
Dec 7 (Reuters) - Saudi Arabia produced 10.047 million barrels per day of crude oil excluding condensate in November, a senior Saudi oil official told Reuters on Wednesday.
"Saudi Arabia' production has been fluctuating this year. It has reached over 10 million barrels in November excluding condensate because consumer demand was higher," the official said.

Russia rejects Iran oil ban -energy min
DOHA, Dec 7 (Reuters) - Banning Iranian oil sales would be a political move and Russia does not believe energy supplies should be used to exert pressure, Russia's energy minister said on Wednesday.
European Energy Commissioner Guenther Oettinger said on Tuesday there was consensus among some EU countries to ban imports of Iranian oil and that Europe hoped to bring Russia on board in a global ban.

Algeria pumping 1.2 mln bpd of crude
LONDON, Dec 7 (Reuters) - Algeria's Energy Minister said his country was pumping 1.2 million barrels per day of crude and had 200,000 bpd of spare capacity.
"Our current production is 1.2 million barrels per day of oil and we plan to increase this capacity to around 1.5 (million bpd)," Energy and Mines Minister Youcef Yousfi told a session at the World Petroleum Congress on Wednesday.

Iran oil to Europe difficult to replace if banned-OPEC's Badri
DOHA, Dec 7 (Reuters) - Iranian oil supplies to Europe would be difficult to replace if a ban supported by some European Union states is imposed, OPEC's secretary general said on Wednesday.
"I really hope there would not be a ban on Iranian crude by EU, it would be very difficult to replace," Abdullah al-Badri said.

China shale gas boom could surpass U.S. - Sinopec
DOHA, Dec 7 (Reuters) - China is set for a shale gas revolution which will surpass that seen in the United States, the chairman of Sinopec, the country's second-largest oil company, said a day after Reuters revealed Royal Dutch Shell Plc  had begun shale gas production in China.
Fu Chengyu, chairman of state-controlled China Petroleum & Chemical Corp (Sinopec)   , said it could take five to 10 years but that China's output would exceed that of the United States.

China asks oil firms to raise diesel, gas supply
BEIJING, Dec 7 (Reuters) - China asked its oil firms to increase diesel supplies and produce natural gas at full capacity to meet demand in the winter-spring season, according to a statement posted on the website of the National Development and Reform Commission (www.ndrc.gov.cn).
The supply of diesel in some regions has been tight for some months and gas demand is peaking in northern China due to heating demand.

Crude Oil Trades Near One-Week Low in New York as U.S. Stockpiles Increase (Source: Bloomberg)
Oil traded near a one-week low in New York as investors speculated that an unexpected gain in U.S. crude inventories indicates demand will falter in the world’s biggest consumer of the commodity. Futures were little changed after dropping for the first time in four days. Stockpiles increased 1.34 million barrels last week, a report from the U.S. Energy Department showed. They were forecast to decline 1.25 million barrels, according to a Bloomberg News survey of analysts. Gasoline supplies climbed almost six times more than projected. Crude for January delivery was at $100.35 a barrel, down 14 cents, in electronic trading on the New York Mercantile Exchange at 10:45 a.m. Sydney time. The contract yesterday decreased 79 cents, or 0.8 percent, to $100.49, the lowest settlement since Dec. 1. Prices are 10 percent higher this year after climbing 15 percent in 2010.


Iron Ore-Spot prices little changed, Vale resumes shipments
SINGAPORE, Dec 7 (Reuters) - Iron ore price offers in top consumer China were steady on Wednesday, reflecting slow steel demand which may continue to limit appetite for the raw material for the rest of the week.
Offers for imported iron ore in China were unchanged, with Australian Pilbara fines quoted at $139 to $141 a tonne, cost and freight, and Newman fines at $141 to $143, Chinese consultancy Umetal said.

Ukraine '12 steel output to rise 5.5 pct - report
KIEV, Dec 5 (Reuters) - Ukraine is likely to raise its crude steel output to 36.5 million tonnes in 2012 from 34.6 million tonnes this year, Ukrainian specialist news agency UGMK reported on Monday citing producers' data.  
The agency quoted local steel producers' union Metalurgprom as saying Ukraine was likely to produce 30.0  million tonnes of pig iron and 33.6 million tonnes of rolled steel next year.

Gold Declines as European Leaders Gather; Palladium Snaps Eight-Day Rally (Source: Bloomberg)
Gold declined after holdings in exchange-traded products fell from a record and the European Central Bank was seen cutting interest rates today ahead of a regional leaders’ summit intended to tackle the debt crisis. Palladium futures dropped for the first day in nine. Immediate-delivery gold dropped 0.3 percent to $1,737.57 an ounce at 9:28 a.m. in Singapore after rising 0.8 percent yesterday and 0.3 percent on Dec. 6. February-delivery bullion fell 0.2 percent to $1,741.50 an ounce on the Comex in New York. Holdings in bullion-backed exchange-traded funds dropped to 2,356.716 metric tons yesterday from the all-time high of 2,358.206 tons on Dec. 6, according to Bloomberg data. The ECB will cut rates by a quarter of a percentage point to 1 percent, according to 53 of 58 economists in a Bloomberg News survey.

Baltic index falls for 2nd day, market seen volatile
LONDON, Dec 6 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell for a second session on Tuesday as slower trade took its toll.  
The shipping sector is expected to see more turmoil in coming months as a supply glut and growing economic gloom keep earnings under pressure.

20111208 1025 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soy futures end slightly higher, bucking the downward trend in grains, as dry Argentina forecasts underpin prices. While the situation in South America is far from dire, traders say dry weather forecasts bear watching since the size of the crop there will have a big impact on demand for US soybeans. "It boils down to South American weather. If they have it, they ship it," says Dave Marshall, an independent commodity advisor. Soybean gains were limited Wednesday by the dollar's strength and worries about Europe. CBOT January soy ends up 1 1/2c at $11.31/bushel.

Soybean Meal/Oil (Source: CME)
Soy products following the soybean market higher, with December soymeal rising $1.50 to $283.70/short ton and soyoil adding 0.26c to 50.24c/pound.

Palm oil perks up on firm crude, weather
KUALA LUMPUR, Dec 7 (Reuters) - Malaysian palm oil futures edged higher as crude oil prices of well above $100 a barrel raised the appeal of the edible oil's use in biofuels at a time when heavy rains are disrupting some supply.
"The market had come off a little in the past few days and it is holding up at 3,100 ringgit due to the strength in other commodities markets, especially crude oil," said a trader with a foreign commodities brokerage in Kuala Lumpur.

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.

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.

Malaysia's Nov palm oil stocks likey to fall for second month
KUALA LUMPUR, Dec 7 (Reuters) - Malaysian palm oil stocks likely fell for a second consecutive month in November, with the decline in production outpacing the drop in exports, a Reuters survey of seven plantation houses showed.
Stocks in the world's No.2 producer of the edible oil probably dropped 6.7 percent to 1.96 million tonnes from 2.1 million tonnes in October, the survey showed, with the pace of the decline rising but staying well below double-digits thanks to strong imports.

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.