Friday, December 9, 2011

20111209 1806 FCPO EOD Daily Chart Study.

FCPO closed : 3084, changed : -5 points, volume : lower.
Bollinger band reading : little downside biased.
MACD Histrogram : resume falling, buyer seller battling.
Support : 3070, 3050, 3020, 2970 level.
Resistance : 3100, 3150, 3200, 3250 level.
Comment :
FCPO closed recorded tiny loss with shrinking volume exchanged. Overnight soy oil closed marginally lower and currently trading weaker while crude oil price testing lower support level.
Quiet market traded today ahead of USDA reports and next week MPOB Nov2011 official data.
Daily chart formed a down doji bar candle closed below middle Bollinger band level after market opened 1 tick higher, edge upwards slightly and slide downwards lower before recovered partially to closed off the low of the day.
Technical study turned to suggesting a little downside biased 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.

20111209 1730 FKLI EOD Daily Chart Study.

FKLI closed : 1457, changed : -12.5 points, volume : higher.
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 better but relatively low volume participation doing 3 points discount compare to cash market that closed lower. Overnight U.S. market closed recorded loss and today Asia markets ended weaker while European markets currently trading between gain and losses.
Asia markets trade weaker as Europe Central Bank statement of no further debt purchases and ahead of Europe summit while China reported slower inflation rate for Nov 2011.
Daily chart formed a small up doji bar candle closed below middle Bollinger band level after market opened gap down, recovered upwards tested above middle Bollinger band support turned resistance level and moved side way range bound towards the end to closed near off the high of the day.
Chart wise 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.

20111209 1729 Regional Markets EOD Daily Chart Study.

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

20111209 1619 Global Market & Commodities Related News.

Stocks, commodities, euro sink on EU summit doubts
TOKYO, Dec 9 (Reuters) - Asian shares, commodities and the euro fell on growing doubts that European leaders could forge a credible plan to solve the euro zone's debt crisis at a summit later in the day.
"The knee-jerk was to the downside, even though we knew every single one of the headlines and there was nothing that we didn't know 24 hours ago, so I would expect a recovery in Asia," said Sue Trinh, a senior currency strategist at Royal Bank of Canada in Hong Kong. "What we can take away from this is that markets are very nervous."

FOREX-Euro struggles as EU disappoints again on debt crisis deal
SINGAPORE, Dec 9 (Reuters) - The euro clawed back losses on Friday after dipping close to a recent one-week low as hopes dimmed that a European Union summit would make substantial progress toward containing the euro zone debt crisis.  
The euro came under pressure and the Australian dollar tumbled after one EU diplomat said EU leaders had agreed the euro zone's permanent bailout fund will not have a banking license, which could limit its firepower.

US jobless claims at 9-month low as recovery quickens
WASHINGTON, Dec 8 (Reuters) - The number of Americans filing new claims for unemployment benefits dropped to a nine-month low last week, suggesting the labor market's recovery was gaining momentum.
The picture of an economy gathering strength was further enhanced by other data on Thursday showing wholesale inventories in October rose by the most in five months, a sign businesses were rebuilding depleted inventories.

China industry output growth slowest in two years
BEIJING, Dec 9 (Reuters) - China's industrial output growth hit its slowest pace in more than two years in November and inflation tumbled as economic conditions deteriorated, raising expectations Beijing will ease monetary policy again.
A batch of November data largely showed that growth in the world's second-largest economy was slowing down further as it feels the chill of the euro zone debt crisis, although retail sales were stronger than expected.

China Nov inflation tumbles, more easing eyed
BEIJING, Dec 9 (Reuters) - China's annual inflation rate tumbled in November to 4.2 percent, the lowest level in more than a year, fuelling expectations of further monetary policy easing to combat deteriorating domestic and international economic conditions.
The rate has dropped rapidly since hitting a three-year high of 6.5 percent in July and is now at a pace closer to the full-year government target for 2011 of 4 percent.

US grains futures slip ahead of EU summit, USDA data
SINGAPORE, Dec 9 (Reuters) - U.S. grains futures dropped in cautious trade ahead of a European Union summit, which may not produce a significant breakthrough to solve a two-year-old debt crisis that had weighed on commodities.    
"If the EU summit fails to deliver any meaningful reforms, meaningful package, then all risk assets, agriculture commodities included, are likely to suffer as a result," said  Luke Mathews, commodities strategist at Commonwealth Bank of Australia.

Vietnam 2010 rice output revised up-attache
Dec 8 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Vietnam:
"Post revises Vietnam's MY2010 total rice production from 41.69 to 42.10 million tonnes (over 2 million tonnes higher than MY2009), paddy basis, due to better production in all Vietnam's seasonal crops compared with MY2009."

EU clears 142,000 tonnes wheat exports this week
PARIS, Dec 8 (Reuters) - The European Union this week granted export licences for 142,000 tonnes of soft wheat, taking the total since the beginning of the 2011/12 (July-June) season to 6.6 million tonnes, official data showed on Thursday.
The total so far this season compared with 10.3 million tonnes of export licences cleared by the same stage in 2010/11.

Ivorian San Pedro cocoa arrivals 224,284 T by Dec 4-BCC
ACCRA, Dec 8 (Reuters) - Cocoa arrivals at Ivory Coast's port of San Pedro since the start of the season in October reached 224,284 tonnes by Dec. 4, according to data from the Coffee and Cocoa Bourse (BCC) obtained by Reuters on Thursday.
That compared with 194,840 tonnes delivered to the port during the same period of the 2010/11 season.

Brazil's lucrative corn expands at soy's expense
SAO PAULO, Dec 8 (Reuters) - The world's No. 2 soy producer, Brazil, will see output of soybeans tumble more than 5 percent in the 2011/12 harvest as more lucrative corn sprawls out, the government crop supply agency Conab said on Thursday.  
Production is expected to fall 5.4 percent to 71.29 million tonnes from last year's record output of 75.32 million tonnes, despite a small 0.7 percent increase in the total soy-planted area.

Coffee may weather economic storm, global output dips
HO CHI MINH CITY/SINGAPORE, Dec 8 (Reuters) - Global coffee output may slip around 4 percent in the year to next September on crop revisions in top two producers Brazil and Vietnam, while resilient consumption could offer some respite to prices already dented by Europe's debt crisis.
Concerns over production would dictate the long-term outlook as Vietnam, which has seen rising output in recent years, cautioned that exports would dip in coming years as domestic consumption rises and output falls due to a replanting programme.

World coffee consumption seen rising steadily-ICO
HO CHI MINH CITY, Dec 8 (Reuters) - Global coffee consumption is expected to rise steadily next year despite the economic slowdown to match the 2.5 percent annual average growth seen in the past decade, a senior industry executive said on Thursday.
"Consumption is going to be very well despite the economic turbulence," Roberto Olivier Silva, executive director of the London-based International Coffee Organization (ICO) told Reuters in an interview.
 
Brent falls below $108 on EU summit doubts
SINGAPORE, Dec 9 (Reuters) - Brent crude fell below $108, on growing concern that European policy makers will fail to deliver a concrete plan to tackle the euro zone debt crisis at a key meeting, an outcome likely to hurt prospects for demand.  
"Before the ECB acts further, the EU has to come together, but the market doesn't believe the EU can get its act together. They will likely do the bare minimum and prices are going to react month to month as they muddle through this crisis," said Tony Nunan, a risk manager with Mitsubishi Corp in Tokyo.

Saudi to supply full January crude to Asia
TOKYO, Dec 9 (Reuters) - Saudi Arabia, the world's top crude exporter, will supply full contracted volumes of crude oil in January to at least three Asian term buyers, unchanged from December, industry sources familiar with the matter said on Friday.
Saudi did not offer additional volumes on top of the contractual volumes to the three buyers, though it has boosted output to over 10 million barrels per day (bpd) to feed increased demand from consuming countries.

US sets preliminary duties on China steel cylinders
WASHINGTON, Dec 8 (Reuters) - The U.S. Commerce Department said on Thursday it has set additional preliminary duties of 5 to 26 percent on high-pressure steel cylinders from China to protect the only remaining U.S. producer of the product.
Norris Cylinder Company, based in Longview, Texas, asked for duties earlier this year to offset alleged Chinese government subsidies and unfair pricing practices.

METALS-Copper slips, eyeing fifth weekly loss in six
SINGAPORE, Dec 9 (Reuters) - London copper futures edged lower on Friday, reflecting investor worries about European leaders finding a far-reaching solution to a two-year-old debt crisis and sharply slowing demand in top consumer China.
Copper is heading for its fifth weekly drop in six weeks, and could stretch losses until the end of the year if a European Union summit later in the day fails to yield positive results and more Chinese data point to weaker growth in the world's second-largest economy.

PRECIOUS-Gold steady; hopes fizzle on EU summit
SINGAPORE, Dec 9 (Reuters) - Gold prices traded steady on Friday, as investors watched the progress of a crucial European Union summit with dwindling confidence that it would produce a cure for the two-year-old debt crisis.
The European Union failed to secure backing from all 27 countries to change the EU treaty at a summit on Friday, meaning any deal will now likely involve the 17 euro zone countries plus any others that want to join, three EU diplomats said.

Copper slips, eyeing fifth weekly loss in six
SINGAPORE, Dec 9 (Reuters) - London copper futures edged lower, reflecting investor worries about European leaders finding a far-reaching solution to a two-year-old debt crisis and sharply slowing demand in top consumer China.
"I'm worried that China's slowing down too fast, that's the scare factor," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.

Gold steady; hopes fizzle on EU summit
SINGAPORE, Dec 9 (Reuters) - Gold prices traded steady, as investors watched the progress of a crucial European Union summit with dwindling confidence that it would produce a cure for the two-year-old debt crisis.
"A day or two is not enough to solve the problem in Europe," said Ronald Leung, a physical dealer at Lee Cheong Gold Dealers in Hong Kong. "If we don't see any concrete outcome from the summit, gold is likely to test $1,700, and $1,680 after that."

20111209 1131 Global Market & Commodities Related News.

Asian Stocks Decline as ECB Disappoints, China Inflation Cools (Source: Bloomberg)
Asian stocks (MXAPJ) fell for a second day after the European Central Bank damped speculation it would step up debt purchases, and even after cooling inflation gave China room to loosen monetary policy. The MSCI Asia Pacific Index (MXAP) slid 1.4 percent to 115.69 as of 10:30 a.m. in Tokyo. All 10 industry groups on the measure dropped, with more than eight stocks falling for each that rose. Japan’s Nikkei 225 Stock Average (NKY) sank 1.6 percent after the nation’s economy grew less than the government’s initial estimate last quarter. Australia’s S&P/ASX 200 index fell 1.2 percent, while South Korea’s Kospi Index (KOSPI) declined 1.6 percent. Hong Kong’s Hang Seng Index fell 2 percent.

GLOBAL MARKETS-Stocks & commodities fall as hopes for EU summit fade
TOKYO, Dec 9 (Reuters) - Asian shares and commodities fell on Friday, while the euro remained under pressure, on growing doubts that European leaders could forge a credible plan to solve the euro zone's debt crisis at a summit later in the day.
"Markets won't be relieved by Europe agreeing to a fiscal discipline alone, and sentiment will only improve if the ECB, the ultimate source of funds, agrees to step in," said Junya Tanase, chief currency strategist at JPMorgan Chase in Tokyo.

COMMODITIES-Oil, copper lead losses after ECB comments
NEW YORK, Dec 8 (Reuters) - Oil and copper were headed for their biggest losses in two weeks on Thursday after comments by the head of the European Central Bank added to investors' worry about the region's debt crisis before a key summit.
"Draghi has not signaled any bond buying," said Arne Lohmann Rasmussen, commodities strategist for Danske Bank in Copenhagen. "I think the market was running ahead of itself hoping for that."

Oil dragged down by ECB comments; eyes EU summit
NEW YORK, Dec 8 (Reuters) - Crude oil futures fell for a second straight day on Thursday as disappointing comments from the head of the European Central Bank increased doubts among investors that the region's debt crisis will be contained.
"Although the ECB gave investors the rate cut and easier loan terms they were looking for, the markets remain nervous ahead of Friday's EU summit and not all the bulls are sticking around to see the outcome," said Tim Evans, energy analyst at Citi Futures Perspective in New York.

Saudi to supply full Jan crude to 1 Asia buyer-source
TOKYO, Dec 9 (Reuters) - Saudi Arabia, the world's top crude exporter, will supply full contracted volumes of crude oil in January to at least one Asian term buyer, unchanged from December, an industry source familiar with the matter said on Friday.
Saudi Arabia made no changes to the operational tolerance in the supply allocation, the source added, meaning buyers have the option of asking for cargoes to be loaded with up to 10 percent more or less crude than contracted.

NYMEX-Natural gas mostly ends up after supportive EIA
NEW YORK, Dec 8 (Reuters) - Front-month U.S. natural gas  futures mostly ended higher on Thursday in fairly active trade,  backed by a government report showing a larger-than-expected  weekly inventory draw despite mild extended weather forecasts  that continued to limit gains.
"We're going to stay in this price range until something  changes in supply or demand. There's plenty of gas around, and  we need to see the weather get much colder," a Florida trader  said, noting that the weekly inventory draw was below expectations.

Euro Coal-Prices stable despite oil fall
LONDON, Dec 8 (Reuters) - Physical prompt coal prices were little changed on Thursday despite a fall in oil prices and a stronger dollar after a day of extremely thin trading.
"The market's looking rather weak in the Atlantic and Pacific, it's been supported by oil and little else recently," one major European trader said.

20111209 1014 Local & Global Economic Related News.

Malaysia: Industrial production climbed 2.8% in October
Malaysia’s industrial production growth eased in October as slowing global demand led mining companies to decrease output. Production at factories, utilities and mines gained 2.8% from a year earlier after rising a revised 3% in September, the statistics department said yesterday. Manufacturing output gained 6.2% in October from a year earlier, easing from a revised 8.9% increase in the previous month, the report showed. Mining fell 5.7 %, while electricity production increased 1.9%. Manufacturing sales rose 11.4% in October from a year earlier, easing from a revised 16.4% gain in September, the statistics department said. (Bloomberg)


The manufacturing sales rose 11.4% yoy to RM51.3bn in Oct (16.4% in Sep).  On a mom basis, the sales increased by 1% (1.6% in Sep). In 10M11, it rose by  11.3% to RM492.5bn. Total employees engaged in the manufacturing sector increased 1.5%  yoy to 1,005,297 in Oct (2.4% in Sep).  Salaries & wages paid in Oct rose 3.8% yoy to RM2.3bn (7.7% in Sep).  Average salaries & wages paid per employee up 2.2% yoy to RM2,286 in  Oct (5.2% in Sep).  Productivity jumped 9.7% yoy to RM51,024 in Oct (13.7% in Sep).  (Department of Statistics)  

Japanese bank lending rose 0.2% yoy in Nov (-0.0% in Oct), the Bank of  Japan said. Excluding factors such as loan write-offs, the loan balance rose 0.5%  yoy, the BOJ said. (Reuters) 

Japan's  current account surplus fell 62.4% yoy in Oct (-21.4% in Sep) as  the nation slipped into a trade deficit on weak exports, government data showed.  Economists expected a drop of 66.8%. (AFP)

Japan's core private-sector machinery orders fell 6.9% mom in Oct (+8.2%  in Sep), official data showed. Economists had expected core orders would rise  0.1%. (AFP) 

The Bank of Korea kept its 7-day repo rate unchanged at 3.25% for a sixth  month, as expected by economists. (Bloomberg) 

India’s local car sales rose to 171,131 units in Nov, a 23.5% mom increase and  a 7.0% yoy gain. However the recovery is insufficient for the industry to meet its  modest forecast of 2%-4% growth in car sales for this financial year through Mar.  (Bloomberg, WSJ) 

India’s food inflation, based on the wholesale price index, eased to 6.60% yoy  in the week ended 26 Nov, compared with 8.00% in the previous week. The flooding in Thailand has taken its toll on the  Philippine automotive  industry, with vehicle sales falling by 1.9% yoy to 131,242 units in 11M11 from  133,739 units a year ago. Vehicle sales in Nov dropped by 10.4%  yoy to 12,090  units. (Philippine Daily Enquirer)  


Indonesia: Pauses interest-rate cuts after currency decline
Indonesia’s central bank kept its benchmark interest rate unchanged, pausing after cutting borrowing costs in the previous two meetings to assess the inflation risk as the rupiah falls. Governor Darmin Nasution and his board kept the reference rate at 6%, Bank Indonesia said in a statement yesterday. The nation’s currency has slumped more than 5% in the past three months, the third-worst performer in Asia, threatening to push up imported inflation even as the protracted European debt crisis hurts global growth. (Bloomberg)

Thailand: Consumer confidence declines to lowest since 2001
Thailand’s consumer confidence slumped to the lowest level in more than a decade in November, hurt by the impact of the worst flooding in almost 70 years. An index measuring sentiment declined to 61.0 from 62.8 in October, the University of the Thai Chamber of Commerce said in a statement yesterday. That’s the lowest since September 2001, according to data compiled by Bloomberg. The gauge is based on a survey of 2,258 respondents. The Bank of Thailand last week cut interest rates for the first time in more than two years after the inundation shut thousands of factories and triggered a slump in industrial output. (Bloomberg)

Eurozone: EU loans to IMF may open door to assistance from Brazil, China
An agreement by European Union leaders to boost the International Monetary Fund’s resources may open the door to similar loans by nations from South Korea to Brazil in a global effort to stem the European debt crisis. European leaders meeting in Brussels may agree to make bilateral loans to the IMF of as much as EUR200bn (USD267bn), an EU diplomat said yesterday. Such a move may draw aid from the Group of 20 nations, which held back last month because they said Europe wasn’t doing enough to help itself. (Bloomberg)

Eurozone: ECB cuts key rate to 1%, may dig Into toolbox as recession looms
The European Central Bank cut interest rates for a second straight month and may delve even deeper into its toolbox today to stimulate bank lending and fight off a recession. ECB policy makers meeting in Frankfurt lowered the benchmark interest rate by a quarter percentage point to 1% to match a record low. They may also loosen the 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. (Bloomberg)

European Central Bank President Mario Draghi offered banks  unlimited  cash for three years while steering clear of any signal the ECB will buy more  bonds to stem the region’s  debt crisis. The ECB pledged for the first time to  offer banks unlimited cash for three years and loosened the collateral rules it  imposes when lending to financial institutions. The measures “should ensure  enhanced access of the banking sector to liquidity,” Draghi said. (Bloomberg)

US: Drop in jobless claims a sign job market is on the mend
Fewer Americans than forecast filed applications for unemployment benefits last week, reflecting a drop in firings that may signal the job market is on the mend. Jobless claims fell by 23,000 to 381,000 in the week ended 3 Dec, the fewest since February, Labor Department figures showed yesterday. Other data showed consumer sentiment has stabilized around levels usually associated with recessions, and wholesalers boosted inventories heading into the holidays. A decrease in firings may foreshadow bigger gains in hiring that will help Americans gain enough confidence in the economic recovery to sustain the pickup in holiday spending into 2012. (Bloomberg)


U.S. consumer credit increased by US$7.65bn to US$2.46tr in Oct  (US$2.45tr in Sep), the most since Oct 09, Federal Reserve figures showed.  Economists projected a US$7bn gain. (Bloomberg)

US wholesale inventories rose 1.6% in Oct (no change in Sep), Commerce  Department figures showed. Economists projected a 0.3% gain in stockpiles.  (Bloomberg)


US stocks decline as ECB President damps bond-buy speculation
US stocks fell, snapping a three-day gain, as the European Central Bank damped speculation it would boost debt purchases and amid a report Germany rejected some proposals to fight the crisis at a summit of EU leaders. The Standard & Poor’s 500 Index retreated 2.1% to 1,234.35 as 487 out of 500 stocks declined. The Dow Jones Industrial Average lost 198.67 points, or 1.6%, to 11,997.70. The Russell 2000 Index of small companies tumbled 3.1% to 722.68. (Bloomberg)

20111209 1013 Malaysia Corporate Related News.

Bumi Armada, AirAsia replace Gamuda, MISC in KLCI
Bumi Armada and AirAsia will replace Gamuda and MISC in the FTSE Bursa Malaysia KLCI after the FTSE Group’s semi-annual review yesterday. PLUS Expressway will be removed from the index after its delisting, to be replaced by UEM Land Holdings on 13 Dec, the FTSE Group said in its press release. (Malaysian Reserve)

General Motors to revive partnership talks with Proton
General Motors has begun talks with Proton Holdings to form a manufacturing venture in the South-East Asian country, according to two people familiar with the matter. The discussions will revive negotiations that were scrapped in 2007, said the people, who asked not to be identified because the talks are confidential. The talks are preliminary and may not lead to an agreement, they said. (Malaysian Reserve)

Axiata: Celcom gets Aussie partner
Broadcast Australia will ink a deal on Monday to be Celcom Axiata Bhd's technical partner ahead of a bid for the much awaited RM2bn digital terrestrial television broadcasting (DTTB) project. This comes as a surprise to many in the industry as Telekom Malaysia (TM) was known to have been in talks with Broadcast Australia for a long time for a similar tie-up. The agreement between Celcom and Broadcast Australia, which operates an infrastructure network for broadcasters and telecommunications providers in Australia, is exclusive. (StarBiz) Please see accompanying report

DRB-HICOM, SAAB seal strategic partnership in defence, aerospace
DRB-HICOM and SAAB AB yesterday signed an industrial cooperation teaming agreement to forge collaboration in a bid to supply Airborne Early Warning and Control System for the Royal Malaysian Air Force. The former said through this programme, the integration of Saab’s Eyerie Radar and the incorporation of the “Eye in the Sky” will provide a significant data link to the Royal Malaysian Navy and Malaysian Maritime Enforcement Agency. (Malaysian Reserve)

Kencana unit lands RM1bn fabrication contract from Bechtel
Kencana Petroleum’s unit, Kencana HL SB, has secured a RM1bn contract from Bechtel International Inc for the fabrication and assembly of a liquefied natural gas (LNG) processing facility in Australia. Kencana said on Thursday that the contract scope included fabrication, assembly, testing and loading of process equipment modules for Wheatstone Project LNG Plant Facility located at Ashburton North, Western Australia. (Financial Daily)

Hektar REIT to purchase Kedah malls for Rm181m
Hektar Real Estate Investment Trust is buying two malls in Sungai Petani and Kulim, Kedah, for RM181m. The Central Square in Sungai Petani and Landmark Central in Kulim are leading malls in their respective areas. Both malls are strategically located in prime spots, have a good tenant mix and ample room for growth and expansion, it added. Central Square currently has a high occupancy rate of 96%, while Landmark Central in Kulim, being a relatively newcomer, has 77%, it claimed. (BT)

Bumi Armada's subsidiary, Armada TGT Ltd, has signed 7-year loan  agreements worth US$341.1m (RM1.08bn) with seven banks to finance the  deployment of its FPSO vessel Armada TGT 1 in Vietnam. The banks are Sumitomo Mitsui as the coordinating bank, mandated lead arranger, facility  agent, security agent and account bank. The other mandated lead arrangers are  CIMB,  ING Bank N.V,  Maybank,  OCBC,  RHB and  Bank of  Tokyo-Mitsubishi. Armada TGT 1, now operating in Block 16-1 of the Te Giac  Trang field for the Hoang Long Joint Operating Company, achieved first oil on  22 Aug. (Star)

CIMB Group Holdings Bhd is not looking to buy Thailand's Phatra Securities,  sources said, culling rumours of its purported interest. One of the sources said  the banking group had indeed eyed Phatra, one of Thailand's top three brokers,  some time ago but then decided to go with the smaller Sicco Securities. "It was too expensive," the source added. CIMB in Sep announced plans  to buy 70% of Sicco for about 767.9m baht in a bid to have a stronger  share of the Thai securities market. (BT)

Sime Darby's 2012 earnings and beyond is not expected to be adversely  impacted by the economic uncertainties in the West because of  palm oil's  position as a main food item.  Sime Darby derives up to 70% of its income from plantations. Sime  Darby chairman Tun Musa Hitam said the economic woes in the United  States and Europe were not expected to be much of a problem to the  conglomerate as long as crude palm oil prices continued to be firm,  supported by demand from developing economies.  "You cannot go wrong when you are producing food. Furthermore, the  emerging economies of China and India and the Southeast Asian region  will cushion the economic slowdown in the West," Musa added. (BT)

DRB-Hicom has denied any knowledge of a bid for Proton Holdings and of  plans to sell a stake in Proton to Volkswagen AG. Meanwhile, Bloomberg  reported that Volkswagen had no plan at the moment to expand operations in  Malaysia beyond a partnership with DRB-Hicom. (Starbiz)

Tan Sri Tony Fernandes has denied he will resign as  AirAsia boss soon,  pointing out that he had only told reporters the airline must prepare for new  leadership. “Not resigning from AirAsia. All I said is next 10 years we must  prepare for new leadership and my time is coming up soon. First a CEO for  Malaysia and I focus on group functions as group CEO. Good leadership is to  prepare for succession. Not going anytime soon though,” he said. (Malaysian  Insider)

Gamuda said the closing of the tender for the Klang Valley mass rapid transit  (MRT) underground works may be extended from early January 2012. Its  managing director Datuk Lin Yun Ling said to his knowledge the only local  entity bidding for the underground contract is MMC-Gamuda while the rest are  foreigners.  "It will take another three to four months for technical evaluation, and  MRT Co will do it (announce the winning bid," he said. He also has "no  clue" what are the profit margins for the MRT project, which is expected  to be completed over two phases. (Financial Daily)

Talk Focus, the newest mobile virtual network operator (MVNO) in the  country, is targeting at least 100,000 subscribers by end-June 2012. It will  provide the mobile phone services like voice calls, text messaging and other  value-added services via DiGi.Com's network.  Customers of its mobile services under the brand Tron will be able to  use their phones to shop for items and obtain discounts at selected  retail outlets. This is on top of the typical things most users do: making  phone calls, sending text messages and surfing the Internet.  "Our services will be a first of its kind... it's going to be revolutionary.  We have a telecommunication business as well as retail business. We  work with merchants somewhat similar to Groupon, but it is a different  experience altogether," CEO Steven Loke said (BT)

Bonia Corp Bhd will be spending between 5-10% of its revenue for its  expansion in Indonesia and Vietnam next year, MD Albert Chiang said. Three  months ago, Bonia opened its first boutique in Jakarta, and to date, it has 35  Bonia counters at some malls' department stores there. "So far, the response  from the consumers  there is very encouraging, and we want to focus on this  market substantially next year," he said after its AGM yesterday.  Apart from Indonesia, the company is also rebuilding its retail base in  Vietnam after the fallout with its previous partner. "Our biggest markets  would continue to be Malaysia and Singapore, and with the current  condition in Europe, we will continue with our focus in the Asian  countries," he said. Its presence in Saudi Arabia has also taken off well, said group finance  director Chong Chin Look, adding that it recently appointed a new  distributor under a five-year contract. He said the company hopes to  penetrate the United Arab Emirates market and other Middle
Eastern  countries such as Kuwait and Qatar in the near future. (BT)

Benalec Holdings has entered into a MoU with Singapore-listed  Rotary  Engineering to study the feasibility of reclaiming 250 acres of land in Tanjung  Piai, Johor for a storage terminal with an initial one million cu m capacity. A  joint-venture company would be set up should the study results in a positive  outcome. (Star Biz)

Boustead Holdings subsidiary Boustead Naval Shipyard has been awarded a  RM62m contract by the Government for the supply and delivery of spare parts,  maintenance, integrated logistic support and  training for the 17 th patrol vessel  squadron of The Royal Malaysian Navy. The contract was from June 7, 2011 to  June 6, 2014. (Star Biz)

Melewar Industrial Group (MIG) signed a MOU with Kazmy Steel Company  of Kazakhstan in which MIG is to be the turnkey design-and-build contractor for  mycrosmelt steel plant in Almaty. The proposed investment in the plant is  estimated at RM178m via a JV by MIE and Kazmy. Of the RM178m, 30% will  come directly from shareholders and 70% via bank borrowings from Kazakh  financial institutions. (Financial Daily)

20111209 1005 Global Market Related News.

Asian Stocks Drop as ECB Damps Bond Hope (Source: Bloomberg)
Asian stocks (MXAPJ) fell for a second day after the European Central Bank damped speculation it would step up debt purchases and ahead of economic reports today that are expected to show China’s economy slowing. Nissan Motor Co., which depends on Europe for 15 percent of its sales, fell 1 percent in Tokyo. Fanuc Corp. (6954), a maker of industrial robots that gets about 70 percent of its revenue outside Japan, sank 3.1 percent. BHP Billiton Ltd. (BHP), the largest global mining company, retreated 2.8 percent in Sydney after commodity prices declined. The MSCI Asia Pacific Index (MXAP) slid 1.1 percent to 116.08 as of 9:37 a.m. in Tokyo. All 10 industry groups on the measure dropped, with almost seven stocks falling for each that rose.

U.S. Stocks Decline as ECB Damps Speculation (Source: Bloomberg)
U.S. stocks fell, snapping a three- day gain, as the European Central Bank damped speculation it would boost debt purchases and amid a report Germany rejected some proposals to fight the crisis at a summit of leaders. Banks tumbled as Morgan Stanley (MS), Citigroup Inc. (C) and JPMorgan Chase & Co. (JPM) retreated at least 5.2 percent. Alcoa Inc., Intel Corp. and General Electric Co. dropped more than 2.5 percent, pacing declines among the biggest American companies. Hartford (HIG) Financial Services Group Inc. decreased 8.2 percent after the insurer said it is targeting additional cost cuts as it copes with a “fragile economic recovery.” The Standard & Poor’s 500 Index retreated 2.1 percent to 1,234.35 at 4 p.m. New York time as 487 out of 500 stocks declined. The Dow Jones Industrial Average lost 198.67 points, or 1.6 percent, to 11,997.70. The Russell 2000 Index of small companies tumbled 3.1 percent to 722.68.

Stocks in Europe Drop Most in Two Weeks on ECB Outlook, Bank Stress Tests (Source: Bloomberg)
European stocks dropped the most in two weeks as the European Central Bank damped speculation it would step up purchases of government bonds and regulators said lenders need to raise more capital than previously forecast. Commerzbank AG (CBK) and Intesa Sanpaolo SpA retreated more than 8 percent after the European Banking Authority said Europe’s lenders will need to boost capital by 114.7 billion euros ($153 billion). PSA Peugeot Citroen and Fiat SpA (F) led a decline in auto shares. BioMerieux (BIM) SA tumbled 11 percent as the maker of medical tests said it may not meet its sales-growth target.
The Stoxx Europe 600 Index slid 1.5 percent to 237.71 at the close of trading. The gauge earlier climbed as much as 1 percent after the ECB cut its benchmark interest rate by a quarter percentage point, offered banks as much money as they need for three years and loosened collateral rules for refinancing operations to ease strains in credit markets. The measure has dropped 14 percent this year amid concern the euro- area debt crisis will derail the region’s economic recovery.

China reported slowest inflation (Consumer Price Index)for Nov 2011 at 4.2% (Source: Bloomberg)

Drop in Jobless Claims a Sign Market is Mending (Source: Bloomberg)
Fewer Americans than forecast filed applications for unemployment benefits last week, reflecting a drop in firings that may signal the job market is on the mend. Jobless claims fell by 23,000 to 381,000 in the week ended Dec. 3, the fewest since February, Labor Department figures showed today in Washington. Other data showed consumer sentiment has stabilized around levels usually associated with recessions, and wholesalers boosted inventories heading into the holidays. A decrease in firings may foreshadow bigger gains in hiring that will help Americans gain enough confidence in the economic recovery to sustain the pickup in holiday spending into 2012. Nonetheless, the specter of a slump in Europe brought on by the debt crisis and government haggling over the U.S. budget loom as obstacles to bigger increases in employment.

IMF Says Hong Kong Needs Immediate Stimulus Should Crisis Cause Recession (Source: Bloomberg)
Hong Kong must be ready to provide “significant and immediate” fiscal stimulus should a worsening European debt crisis threaten to drive the city into recession, according to the International Monetary Fund. The Chinese city could cut taxes, provide subsidies to the poor or roll back some property-cooling measures, the Washington-based fund said in a report released today. Policy makers must be ready to react, even though a deepening crisis is a “low probability tail event,” it said. Global stocks fell as the European Central Bank damped speculation that it would increase debt purchases to fight the region’s crisis. Recession is “possible” for Hong Kong on deteriorating exports and the government will ease property curbs in the event home prices slump, Financial Secretary John Tsang said this week.

Japan GDP Rebound Last Quarter Less Than Initial Estimate (Source: Bloomberg)
Japan’s economy grew less than the government’s initial estimate last quarter as companies reduced investment on concern overseas demand was stalling. Gross domestic product increased at an annualized 5.6 percent in the three months ended Sept. 30, the Cabinet Office said in Tokyo today, compared with a preliminary figure of 6 percent. The median forecast of 19 economists surveyed by Bloomberg News was for an increase of 5.2 percent. Japan’s economic recovery after two straight quarters of contraction and a record earthquake in March is threatened by a global slowdown and a yen rate staying near post-World War II highs against the dollar. Prime Minister Yoshihiko Noda ordered a fourth extra budget last week to shore up demand in the world’s third-largest economy.

South Korean Economy to Forecast Grow 3.7% in 2012, Bank of Korea Says (Source: Bloomberg)
South Korea’s growth is set to slow and inflation may ease next year, the Bank of Korea said a day after leaving borrowing costs unchanged on concern Europe’s debt crisis poses risks to Asia’s fourth-biggest economy. Gross domestic product is likely to expand 3.7 percent in 2012 and 4.2 percent in 2013, compared with 3.8 percent this year, the central bank forecast in a statement released in Seoul today. Consumer prices may increase 3.3 percent next year after a 4 percent gain in 2011, it said. Governor Kim Choong Soo left the seven-day repurchase rate at 3.25 percent for a sixth month yesterday, the longest pause since tightening began in July 2010. Downside risks to growth are “high” because of the European turmoil, possible slumps in major economies and unrest in international financial markets, the central bank said in its statement yesterday.

EU Battles for ‘Fiscal Compact’ to Lure ECB Into Euro Fight (Source: Bloomberg)
European leaders battled into the night to halt two years of debt-driven turmoil in financial markets and dispel concerns that the 17-nation euro currency is on the brink of unraveling. Leaders worked on a “fiscal compact” at a Brussels summit to restore bondholders’ confidence and make it possible for the European Central Bank and International Monetary Fund to step up contributions to the rescue effort. No agreement has yet been reached, said two government officials familiar with the talks.Chancellor Angela Merkel of Germany, Europe’s dominant economy, damped expectations, saying the euro’s credibility has suffered and calling the 15th summit in 23 months part of a “step-by-step” solution to the crisis that has cast doubt on the currency’s survival. Italian and Spanish bonds tumbled and the U.S. Standard & Poor’s Index fell the most in two weeks as some investors reined in optimism about the summit’s outcome.

EU Loans to IMF May Open Door to Brazil, China Help (Source: Bloomberg)
An agreement by European Union leaders to boost the International Monetary Fund’s resources may open the door to similar loans by nations from South Korea to Brazil in a global effort to stem the European debt crisis. European leaders meeting in Brussels may agree to make bilateral loans to the IMF of as much as 200 billion euros ($267 billion), an EU diplomat said yesterday. Such a move may draw aid from the Group of 20 nations, which held back last month because they said Europe wasn’t doing enough to help itself. A deal in Brussels “should pave the way, make it more comfortable for countries that want to contribute to do so,” said Uri Dadush, director of international economics at the Carnegie Endowment for International Peace in Washington. “The Brazilians, the Chinese will be pushing for increased participation.”

Draghi Acts to Expand Credit to Banks, Doesn’t Signal More ECB Bond Buying (Source: Bloomberg)
European Central Bank President Mario Draghi cut interest rates and offered banks unlimited cash for three years while damping speculation the ECB will buy more government bonds to stem the region’s debt crisis. Policy makers meeting in Frankfurt today reduced the benchmark rate by a quarter percentage point to 1 percent, matching a record low. They also loosened collateral rules so that banks can borrow more from the ECB and announced two unlimited three-year loans. The measures “should ensure enhanced access of the banking sector to liquidity,” Draghi said at a press conference. Hours before European leaders meet in Brussels, Draghi kept the onus on them to solve the two-year debt crisis by repeating his call for a “fiscal compact” and denying he had hinted the ECB would automatically support such an initiative with more bond purchases.

20111209 1004 Global Commodities Related News.

Corn (Source: CME)
US corn futures end lower as traders book profits on short positions ahead of Friday's USDA report. Traders expect little change in the data, but the potential for a surprise prompted short-covering, traders say. The market shook off early losses as better-than-expected export sales added to the positive tone. March corn rises 7 1/2c to $6.00 1/4.

Wheat (Source: CME)
U.S. wheat futures end lower, as poor export demand continues to pressure prices. Unlike corn and soy, wheat weekly export sales were lackluster, reinforcing the market's problems with an abundance of wheat supplies worldwide. Outside markets, including a stronger dollar, added to the pressure. Traders awaiting Friday's USDA report, which they expect will show little change to the wheat balance sheet. Report released before Friday's open. CBOT March wheat ends down 3 1/2c to $5.97 a bushel, CBOT MGEX March wheat ends down 2c to $8.21 1/4 and KCBT March wheat ends up 2 3/4c $6.58 1/2.

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.

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.

Canada court says Ottawa broke law on Wheat Board
WINNIPEG, Manitoba, Dec 7 (Reuters) - A Canadian judge ruled on Wednesday that Agriculture Minister Gerry Ritz broke the law by not consulting with the Canadian Wheat Board or holding a farmer vote before moving to end the board's grain marketing monopoly.
The Federal Court's decision does not have the power to derail a government bill to end the monopoly on marketing wheat and barley from Western Canada, but it gives the Wheat Board ammunition in its public relations campaign calling for Ottawa to let farmers decide the CWB's fate.

Russia grain exports to slow, dominance broken
MOSCOW, Dec 7 (Reuters) - Russia's grain exports are set to slow in the face of rising competition from rivals Argentina, Australia and Kazakhstan, participants at an international grains forum in Moscow said on Wednesday.
Egypt's decision to purchase mostly Argentine wheat at a tender this week was seen as signalling the end of a period when Russia has been able to secure as much as 90 percent of the business to the world's leading wheat importer.

Chilly in U.S. for a week, no harm seen to crops
CHICAGO , Dec 7 (Reuters) - Chilly weather was forecast for at least the next week in the U.S. Midwest and Plains, but no harm to crops was expected, an agricultural meteorologist said Wednesday.
A blanket of insulating snow protected the hard red winter wheat crop from cold temperatures in the Plains, and the 2011 corn and soybean harvest was almost complete.

Russia seen exporting at least 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.

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 35 percent from a 29-month high of $9.1675 a bushel in February will drop 11 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 9.6 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.

FAO: North African 2011 Wheat Output Seen At 19.3M Tons (Source: CME)
North Africa's wheat output is forecast to hit 19.3 million metric tons in 2011, up by 20% on year, due to decent levels of rainfall, the United Nation's Food body said in its latest quarterly Crop Prospects and Food Situation report. "Adequate rains and water availability in the main growing areas of Algeria, Egypt, Morocco and Tunisia, had a positive impact on yields," the FAO said. In Egypt, the largest producer in the North African region, the harvest is estimated at 8.4 million metric tons, or 17% above last year's poor crop. Imports of wheat in the 2011-12 to North Africa are expected to be slightly lower than a year earlier, due to better harvests this year. However, the region will import around 23 million tons of wheat in the current marketing year, well above the average of the previous five years, the FAO added. North African countries depend heavily on wheat imports from abroad, with Egypt standing as the world's largest importer at 10 million tons in 2010-11.

Rice (Source: CME)
U.S. rice futures end lower, falling to their lowest price in more than a week amid poor demand. Weak exports and a lack of global crop worries have sent prices tumbling the past three months. Traders awaiting Friday USDA report. Jan CBOT rice ends down 16 1/2c to $14.22 a bushel.

World Food Prices Could Be Bottoming Out - FAO (Source: CME)
World food prices could be bottoming out, a United Nations official said after its monthly index experienced its fifth straight decline, its longest slide in over two years. "We are seeing that month-on-month declines in the world food price index are becoming less steep, despite the recent announcements from various countries that grain production this year will be higher than previously anticipated, so one would expect the falls to be more drastic," Abdolreza Abbassian, senior economist at the FAO, told Dow Jones Newswires. Food and Agriculture Organization's November food price index, which measures the monthly change in international prices of a basket of food commodities, was down 0.5% on the prior month to 215 points, led mainly by declines in wheat prices. The index slumped 4% on-month in October, led by sharp price declines in cereals, oils, sugar and dairy products, after hitting a record 238 points in February.
"Prices technically should be lower than what they are and declines deeper than what we are witnessing, so this suggests that food prices could be bottoming out," FAO's Abbassian said. Russia, a major Black Sea grains producer, could harvest between 95 million-100 million metric tons next year, similar to levels reaped during 2008, one of the country's largest harvests on record, Andrey Sizov Sr., senior economist and chief executive of analysis body SovEcon, told Dow Jones Newswires. "The healthy projection forecast is a result of an increase in acreage and improved winter planting conditions," Sizov Sr. said. This year, Russia is already expected to harvest a healthy 92 million tons of grain, of which 34.7 million tons is winter wheat.
Still, the FAO's Abbassian warned that drought issues in Ukraine could also be helping to support the modest food price declines. Offre & Demande Agricole said the condition of winter crops is poor in the Ukraine and market participants are closely watching the weather in Eastern Europe. However, Abbassian said it was too early to speculate about the condition of crops in 2012. The FAO said that a strong U.S. dollar and a weaker global economic outlook also contributed to lower cereal prices in November.

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.

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.

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.

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 likely to fall some 15 percent in 2011/12, Coffee Board Chairman Jawaid Akhtar said on Wednesday, as a burgeoning Indian middle class expands domestic consumption.
Exports for the year ending March 31, 2012 were seen between 240,000-250,000 tonnes as against 294,000 tonnes a year ago, Akhtar said.

Cocoa Falls, Caps Longest Slump in 50 Years, on West Africa Supply Outlook (Source: Bloomberg)
Cocoa fell, capping the longest slump in 50 years, on speculation that supplies from West Africa, the world’s biggest producing region, will exceed initial estimates. Cocoa for March delivery dropped 0.5 percent to settle at $2,131 a metric ton at 12:02 pm. on ICE Futures U.S. in New York. The price dropped for the 11th straight session, the longest slump since at least 1961, according to Bloomberg data. Earlier, the commodity touched $2,078, the lowest for a most- active contract since November 2008. Output in Ivory Coast, the world’s top producer, may be 1.43 million tons in the year ending Sept. 30, up 3.2 percent from its prior forecast, Ecobank Transnational Inc., based in Lome, Togo, said. Global supplies will exceed demand for the second straight year, Marex Spectron Group Ltd, a London-based broker, has said.

World coffee consumption seen rising at steady level-ICO
HO CHI MIN CITY, Dec 8 (Reuters) - Global coffee consumption is expected to rise steadily next year despite the economic slowdown to be on par with the 2.5 percent annual average growth seen in the past decade, a senior industry executive said on Thursday.
"Consumption is going to be very well despite the economic turbulence," Roberto Olivier Silva, executive director of the London-based International Coffee Organization (ICON) told Reuters in an interview.

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.

Crude Oil Heads for Weekly Decline Before Europe Debt Accord, OPEC Meeting (Source: Bloomberg)
Oil headed for the biggest weekly decline since September in New York as investors speculated that fuel demand will falter amid signs Europe is struggling to tame its sovereign debt crisis. Futures were little changed after dropping the most in three weeks yesterday as European Central Bank President Mario Draghi signaled the ECB won’t increase government bond purchases to end the crisis. Saudi Arabia, the world’s biggest crude exporter, is in no rush to agree to a new OPEC quota at the group’s Dec. 14 meeting, Oil Minister Ali al-Naimi said. “Europe is the driving feature of all these risk markets,” said Ric Spooner, a chief analyst at CMC Markets in Sydney. “The obvious implications for all commodity markets is if we’re going to continue to have poor confidence levels, then that’ll impact negatively on world demand and has the potential to soften prices.”

Gold Declines Most in Two Weeks as Draghi Damps Debt-Purchase Speculation (Source: Bloomberg)
Gold fell the most in more than two weeks after European Central Bank President Mario Draghi said he didn’t signal plans to purchase more bonds to spur growth. Equities and the euro retreated after Draghi said the ECB’s bond-purchase program was not eternal or infinite, damping speculation that the central bank will increase debt buying to fight the region’s crisis. The U.S. Dollar Index, a six-currency gauge, climbed for the first time in four days. “The market is once again completely focused on what’s going on in the euro zone,” Matthew Zeman, a strategist at Kingsview Financial in Chicago, said in a telephone interview. “Gold has been acting like any other risk asset. When people go into risk-off mode, gold suffers the consequences, like everything else, while the dollar and Treasuries benefit.”

Gold Traders Most Bullish in a Month on European Debt Crisis: Commodities (Source: Bloomberg)
Gold traders are more bullish as investors buy metal at the fastest pace in a year to protect their wealth from Europe’s escalating debt crisis. Eighteen of 26 surveyed by Bloomberg expect the metal to advance next week, the highest proportion since Nov. 11. Holdings in exchange-traded products backed by gold rose 108.6 metric tons to a record from the start of October, the most since the second quarter of 2010, data compiled by Bloomberg show. The extra bullion is valued at $5.99 billion. Investors are now making a $130 billion bet on gold as European leaders meet in Brussels to seek ways to tackle the crisis that means Germany and France are under threat of losing their AAA rating from Standard & Poor’s. The European Central Bank yesterday cut interest rates for a second consecutive month to shore up growth, increasing the appeal of gold, which earns investors returns through price gains.

20111209 1002 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures end steady to mostly higher amid position squaring ahead of tomorrow's USDA report. The market traded both sides of unchanged during the session and lacked direction, as traders looked to position themselves ahead of the USDA report. Traders expect USDA will increase projected stockpiles due to poor export demand. Grains and soy shook off pressure from outside markets stemming from worries about Europe's debt. Jan CBOT soy ends flat at $11.31 a bushel, while other contracts are up slightly.

Soybean Meal/Oil (Source: CME)
March CBOT soybean oil ends down 0.03c to 50.88c/lb; March soymeal down $0.90 to $288 a short ton.

Palm oil almost flat ahead of key euro zone summit
KUALA LUMPUR, Dec 8 (Reuters) - Malaysian palm oil futures made little headway  amid investor doubts over European leaders coming to an agreement to tackle a debt crisis in a make-or-break summit this week.
"It's the do-or-die summit that is keeping palm oil markets subdued," said a trader with a foreign commodities brkerage.

Malaysia eyes Africa for palm oil markets growth
JOHANNESBURG, Dec 7 (Reuters) - Malaysia is looking for more palm oil business opportunities across Africa as it seeks to grow the sector through joint ventures with international companies, Commodities Minister Bernard Dompok said on Wednesday.
"We have companies (in South Africa) from Malaysia doing joint ventures and we are encouraging more ... I think there is a lot of scope for more corporation of this type in South Africa," Dompok said on the sidelines of a Palm Oil trade fair and seminar in Johannesburg.