Wednesday, December 14, 2011

20111214 1806 FCPO EOD Daily Chart Study.

FCPO closed : 3052, changed : +50 points, volume : higher.
Bollinger band reading : pullback correction little downside biased.
MACD Histrogram : turned upward, buyer seller battling.
Support : 3050, 3020, 2970, 2950 level.
Resistance : 3070, 3100, 3150, 3200 level.
Comment :
FCPO closed recorded gains with better volume changed hand. Overnight soy oil closed recorded small loss and currently rebounding higher while crude oil price trading lower.
Higher exports from Indonesia that climb 42.5% according to industry source lead FCPO price to rebound higher.
Daily chart formed an up bar candle closed in between middle and lower Bollinger band level after market opened and trade little lower, and climb upwards all the day to closed at the high of the day.
Technical study suggesting a pullback correction 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.

20111214 1721 FKLI EOD Daily Chart Study.

FKLI closed : 1463.5, changed : -1.5 point, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : falling, seller testing market.
Support : 1458, 1445, 1440, 1435 level.
Resistance : 1470, 1477, 1485, 1491 level.
Comment :
FKLI closed recorded small loss with little improved volume transacted nearly on par to cash market that closed slightly lower. Overnight U.S. market closed recorded loss again and today Asia markets ended mostly lower while European markets having mixed development with England, France and Germany trading weaker.
Slower U.S. retail sales and Federal Reserve refrained from taking new measures to spur growth leaded global markets to trade lower.
Daily chart formed an up doji bar candle closed above middle Bollinger band level after market opened lower, recovered upwards into positive territory followed by 2nd session downward swing to closed off the higher of the day.
Still, technical chart 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 resistance or strength with quick cut loss and profit target.

20111214 1714 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.

20111214 1650 Renewable Energy Related News.

SIEMENS TO OPEN HULL WIND TURBINE PLANT IN 2014
LONDON, Dec 13 (Reuters) - German engineering company Siemens  submitted a planning application to build a wind turbine factory in Hull, UK, which would create a potential 700 jobs upon its opening in 2014, the company said on Tuesday.
Wind energy in Britain already employs more than 10,000 people full time, and lobby group RenewablesUK expects that to rise to 90,000 over the next 10 years.

SPAIN HYDRO, IRRIGATION RESERVES DECLINE
MADRID, Dec 13 (Reuters) - - Spain has less water than a week ago to generate hydropower and irrigate crops although reservoir levels are comfortably above average, the latest data showed on Tuesday in the major gas- and grain-importing country.
Hydropower reservoirs  held enough water to generate 11,181 gigawatt-hours of electricity, or 145 GWh down on the week, the Ministry for the Environment and Rural Affairs said.

INDIA'S TATA POWER SECURES FUNDS FOR 25 MW SOLAR PROJECT
MUMBAI, Dec 13 (Reuters) - Indian utility Tata Power  said on Tuesday it has secured debt financing for a 25-megawatt solar photovoltaic power project in western India.
Tata Power tied up loans for the 3.65-billion-rupee ($68.5 million) project at Mithapur in Gujarat, through a consortium consisting of State Bank of India and Export Import Bank of India , it said in a statement.

INDIA HAS COMMISSIONED 186 MW SOLAR PROJECTS - OFFICIAL
MUMBAI, Dec 13 (Reuters) - India has so far commissioned solar projects with capacity of about 186 megawatt, of which 40 MW worth of off-grid projects were commissioned in 2011, a senior government official said on Tuesday.
Tarun Kapoor, joint secretary, federal ministry of new and renewable energy, told reporters on the sideliness of Inter Solar conference in Mumbai.

UK'S GREEN BANK TO LEND TO WIND, WASTE ENERGY
LONDON, Dec 12 (Reuters) - Britain's Green Investment Bank (GIB) will start lending money to renewable energy projects from April next year, Business Secretary Vince Cable said on Monday, with offshore wind and waste energy projects a top priority over the first three years.
The UK government has set aside 3 billion pounds to support the bank until 2015, a sum which is expected to attract an extra 15 billion pounds in private investment to Britain's nascent renewable energy industry.

VESTAS SAYS GETS 96 MW TURBINE ORDER IN SWEDEN
COPENHAGEN, Dec 12 (Reuters) - Denmark's Vestas , the world's biggest maker of wind turbines, said on Monday it had won a 96 megawatts turbine order for a project in Sweden.
Vestas Wind Systems A/S said in a statement the order was for 32 units of its V112-3.0 megawatt turbine and delivery and installation would begin in August 2012.

COLUMN-SOLAR PRICE PLUNGE STILL AWAITS BREAKTHROUGH-GERARD WYNN
LONDON, Dec 9 (Reuters) - Solar power prices have plunged to levels that are nearly competitive with conventional grid power, without subsidies, and at a pace that has wrong-footed lagging estimates by consultants.  
Prices of solar equipment are dropping as Chinese manufacturers ramp up capacity at the same time as key markets Italy and Germany pare subsidies. New economic turmoil will curb demand and pressure prices further.

CHINA ENERGINE SAYS IN $134 MILLION WIND POWER JV
HONG KONG, Dec 9 (Reuters) - China Energine International (Holdings) Ltd , a maker of wind power equipment, said on Friday that it has agreed to take 40 percent in a joint venture that will invest 855 million yuan ($134.39 million) to develop and operate a wind farm in Liaoning province.
The company said in a statement that it would form the joint venture in the city of Gaizhou with wind farm developer Zhongneng Huali Investment and two other companies.

CHINA'S GOLDWIND IN CHILEAN TURBINE SUPPLY DEAL
HONG KONG, Dec 8 (Reuters) - Xinjiang Goldwind Science and Technology  , China's second-largest maker of wind power equipment, said it won a contract to supply 23 wind turbines to a wind farm project in Chile.
The contract represents Goldwind's second supply deal in South America and will have a combined capacity of 34.5 megawatts, the company said in a statement without giving the deal's financial details.

UK WIND COSTS RISE AS TURBINES MOVE INTO DEEP SEA
LONDON, Dec 7 (Reuters) -    UK offshore wind energy development costs are rising as sites move into deeper waters with bigger turbines, those in the industry say.
The average offshore wind farm cost was up from around 1.4 million pounds per megawatt hour (MWh) in 2005 to almost 3 million pounds in 2010, according to data from RenewableUK, a wind energy lobby group.

S.AFRICA SELECTS 28 PROJECTS FOR GREEN POWER DRIVE
DURBAN, Dec 7 (Reuters) - South Africa has chosen 28 renewable energy projects as part of its drive cut its reliance on coal fired plants, and bidders have until June to prove the projects are financially viable, the energy ministry said on Wednesday.
The selected bidders were announced on the sidelines of a global climate summit in Durban where delegates from more than 190 nations are hoping to agree to a new deal to tackle greenhouse gas emissions, blamed by scientists for rising sea levels, intense storms and crop failures.  

GERMAN WIND, SOLAR POWER TO EXPAND-REGULATOR
BONN, Dec 7 (Reuters) - Germany is set to expand its onshore wind power capacity by 1.7 gigawatts (GW) a year up to 2032, its Federal Network Agency said on Wednesday after studying the impact of a planned rapid expansion of green power in Europe's biggest economy.
It would arrive at 47.5 GW in 2022 and 64.5 GW in 2032, compared with 27.1 GW of capacity installed in 2010, the agency's president Matthias Kurth said at a news briefing.

20111214 1650 Biofuel Related News.

PROSPECTS FOR NEXT BRAZIL CANE CROP BETTER -UNICA
SAO PAULO, Dec 13 (Reuters) - After several months of downward revisions in Brazil's 2011/12 main center-south cane crop, the season is ending with a whimper, but next year already looks better, sugar and ethanol industry association Unica said on Tuesday.
Nearly all of the 350-odd sugar and ethanol mills in the center-south, which accounts for 90 percent of Brazil's cane output, have closed for maintenance over the interharvest period, Unica said.

BRAZIL TO REGULATE ETHANOL STOCKS IN 2013 - REPORT
SAO PAULO, Dec 9 (Reuters) - Aiming to curb fuel price swings, Brazil's National Petroleum Agency (ANP) will start requiring distributors to carry 15-day stocks of anhydrous ethanol, a gasoline additive, but only in 2013, a local paper said on Friday.
The board of the ANP approved a new regulatory measure governing the ethanol market that will only take effect in April, 2013, when the start of the 2013/14 cane crushing season gets under way, the Folha de S.Paulo newspaper said citing the ANP.

BRAZIL 11/12 SUGAR OUTPUT SEEN AT 36.9 MLN T-GOV'T
SAO PAULO,Dec 8 (Reuters) - Estimates for sugar and ethanol output in Brazil's 2011/12 cane season were cut again on Thursday by government supply agency Conab, which cited the effects of bad weather and aging fields on the cane crop.
In its third estimate for the season, Conab put the country's total cane crush at 571.5 million tonnes, down from the 589 million tonnes in its previous forecast in August.

US ETHANOL WEEKLY OUTPUT SOARS TO RECORD 954,000 PBD
CHICAGO, Dec 7 (Reuters) - U.S. ethanol production hit a record high in the latest week, while stocks also rose, up more than 5 percent in the last week, the Energy Information Administration reported Wednesday.
U.S. ethanol production totaled 954,000 barrels per day in the seven days to Dec. 2, up 24,000 barrels per day. The next highest production level was when ethanol production hit 939,000 barrels per day for the week ending December 3, 2010.

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."

20111214 1649 Global Market & Commodities Related News.

FOREX-Euro sweating above $1.30; Italian debt sale eyed
TOKYO, Dec 14 (Reuters) - The euro wallowed near 11-month lows against the dollar  and crept close to an option barrier whose break could rapidly speed up its decline, with an Italian bond sale coming into focus later in the day.
"There's some buying on dips and option-related bids stabilising the euro today, but the bearish trend is by no means over. By the beginning of 2012 it's likely to drop to around $1.25," said Koji Fukaya, chief FX strategist at Credit Suisse.

Stocks, euro fall after Fed skips fresh stimulus
SINGAPORE, Dec 14 (Reuters) - Asian shares drifted lower and the euro floundered near an 11-month low after the Federal Reserve failed to take any new steps to stimulate growth and offset the chilling effects of Europe's still-unresolved debt crisis.
"Investors continue to avoid risk as they look to possible sovereign debt downgrades in Europe," said Hiroichi Nishi, equity general manager at SMBC Nikko Securities in Tokyo.

U.S. corn, soy dip on Europe crisis, higher supplies
SINGAPORE, Dec 14 (Reuters) - U.S. corn and soy fell , giving up last session's modest gains as Europe's unresolved debt crisis weighed on riskier assets, while hopes of plentiful global grain and oilseed supplies also dented sentiment.
"It is perhaps the strength in the U.S. dollar which is on the back of euro zone concerns," said Brett Cooper, senior manager of markets at FCStone Australia.

Australia sees sugar exports up despite trimming output fcast
SYDNEY, Dec 14 (Reuters) - Australian sugar exports are forecast to increase by 7 percent in 2011-12 to 2.8 million tonnes in line with a rise in production from canefields recovering from cyclone damage earlier this year, the government's commodities forecaster said.
The forecast is mostly unchanged from one made by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) in September, despite a downward revision of  expections for the harvest.

Cargill warns against premature marketing of GMO seeds
CHICAGO, Dec 13 (Reuters) - Distributing biotech seeds to American farmers before they are approved in major grain export markets is not good for U.S. agriculture, an executive with agribusiness giant Cargill Inc said on Tuesday.
"We do not support the commercialization of GM traits ahead of major market approvals," Randal Giroux, vice president of food safety for Cargill, told the members of the National Grain and Feed Association, the largest U.S. grain group, at a meeting.

UK wheat exports edge up, still below last year
LONDON, Dec 13 (Reuters) - UK wheat exports edged up in October, although continuing to run significantly below last season's levels, customs data showed on Tuesday.
Shipments during October totalled 291,511 tonnes, up from the prior month's 277,315 tonnes.

Mauritius 2011 sugar estimate lifted to 430,000 T
PORT LOUIS, Dec 13 (Reuters) - Mauritius' Chamber of Agriculture revised its 2011 sugar production forecast upward by 4.9 percent to 430,000 tonnes on Tuesday on the back of improved sugar cane productivity.
Sugar, long a pillar of the Indian Ocean island's nearly $10 billion economy, accounts for roughly 1.2 percent of gross domestic product.

China Dec soy imports seen at 5.39 mln T -Mofcom
BEIJING, Dec 13 (Reuters) - China, the world's largest soy buyer, is expected to import 5.39 million tonnes of the oilseed in December, 0.7 percent less than in the same month a year ago, according to the latest estimate by the commerce ministry published on Tuesday.
The December figure represents the second highest monthly import this year, after November's 5.7 million tonnes, which was the second highest ever.

Brent slips towards $109 as investors book profits
SINGAPORE, Dec 14 (Reuters) - Brent crude slipped towards $109 as investors booked profits after prices rose more than $2 in the previous session and worries about the global economy overshadowed concerns over disruption of supply from the Middle East.
"There is some profit-taking we are seeing today after oil surged so high yesterday," said Tetsu Emori, a fund manager with Astramax Co. in Tokyo.

Japan crude stocks rise, refinery runs hit 9-mth high
TOKYO, Dec 14 (Reuters) - Japan's commercial crude inventories rose 3 percent last week, while gasoline and kerosene stocks also gained at the start of the peak winter season as crude throughput rose to a nine-month high.    
Crude   stocks in the world's third-biggest oil consumer increased  by 455,000 kilolitres (2.9 million barrels) from the week before to 15.5 million kl in the week to Dec. 10, the Petroleum Association of Japan (PAJ) said.

OPEC, IEA agree on balanced oil market ahead
LONDON, Dec 13 (Reuters) - Healthy production levels by OPEC will help balance oil markets next year as demand growth slows, the West's energy watchdog and OPEC said on Tuesday, a day ahead of a policy-setting meeting by the producer group.
The International Energy Agency said the Organization of the Petroleum Exporting Countries had raised output to its highest level in more than three years, and the oil producer group said it was now pumping more than might be required next year.

Copper drops a third day as Europe gloom weighs
KUALA LUMPUR, Dec 14 (Reuters) - London copper fell for a third straight session as investors scrambled into safer dollar holdings, fearing credit downgrades in Europe as the United States warned of risks to its economy from the euro zone debt crisis.
"In the whole scheme of things, the topsy turvy situation in Europe is putting a negative blanket over the whole world," said Thomas Lam, a Singapore-based economist at OSK-DMG, a joint venture between Malaysian securities firm OSK Holdings Bhd and Germany's Deutsche Bank AG.

Italy copper, alloy product output down in 2011, 2012
MILAN, Dec 13 (Reuters) - Output of copper and alloy semi-finished products in Italy, Europe's second-biggest manufacturer, is expected to fall this year and in 2012 as economic crisis and volatile metal prices hit demand, a senior industry official said on Tuesday.
"Copper and alloy semi-finished (products) industry has been doing badly since July," Claudio De Cani, director of Italy's non-ferrous metals association Assomet, told Reuters in a telephone interview.

Aluminium stocks to hit 5 MT; premiums soften-trade
LONDON, Dec 13 (Reuters) - More large shipments of aluminium are expected to enter warehouses registered by the London Metal Exchange before the year is out, driving stockpiles to a new record above 5 million tonnes and helping to depress premiums, traders said on Tuesday.
In November, traders said large inflows were expected this month as a souring economic outlook curbed demand and a European dollar crunch intensified the need for cash ahead of the year end.

Japan Q1 aluminium premiums mostly at $112 -sources
TOKYO, Dec 14 (Reuters) - Japan's aluminium buyers have won a 5 percent cut in premiums charged by producers for the January-March quarter, down for the second consecutive quarter, as a global economic slowdown hurts demand, sources directly involved in the deals said.
Japan consumes about 2 million tonnes a year of aluminium, or 5 percent of global consumption, but high energy costs and a lack of smelters have made it Asia's biggest importer of the light metal used in car parts, tins and construction materials.

U.S. gold falls 2 pct as dollar regains strength
SINGAPORE, Dec 14 (Reuters) - U.S. gold fell 2 percent to its lowest in nearly two months, tracking cash gold prices, as the dollar retained its strength after the U.S.
Federal Reserve refrained from announcing any measures to ease monetary policy.
"If we see weak demand for bond sales in Italy and Spain, it will again fuel concerns about the debt problem in Europe and cause a further sell-off in markets," said Ong Yi Ling, an analyst at Phillip Futures.

METALS-Copper drops a third day as Europe gloom weighs
KUALA LUMPUR, Dec 14 (Reuters) - London copper fell for a third straight session  as investors scrambled into safer dollar holdings, fearing credit downgrades in Europe as the United States warned of risks to its economy from the euro zone debt crisis.
"In the whole scheme of things, the topsy turvy situation in Europe is putting a negative blanket over the whole world," said Thomas Lam, a Singapore-based economist at OSK-DMG, a joint venture between Malaysian securities firm OSK Holdings Bhd and Germany's Deutsche Bank AG.

PRECIOUS-Spot gold on technical rebound; dollar weighs
SINGAPORE, Dec 14 (Reuters) - Spot gold rose slightly after falling 2 percent in the previous session, as a key technical level offered support to prices that remained under pressure from a firm dollar.
"If we see weak demand for bond sales in Italy and Spain, it will again fuel concerns about the debt problem in Europe and cause a further sell-off in markets," said Ong Yi Ling, an analyst at Phillip Futures.

Singapore's SMX eyes launch of more base metals contracts
SINGAPORE, Dec 13 (Reuters) - The Singapore Mercantile Exchange is planning to launch new commodity contracts in early 2012, including base metals and pepper, its chief executive said on Tuesday, as the bourse boosts its efforts to become a price setter in Asia.
SMX, owned by India's Financial Technologies , has seen limited liquidity in its commodity and currency contracts since it launched in August 2010. But with volumes continuing to improve, the exchange is introducing more products.

20111214 1200 Global Market & Commodities Related News.

GLOBAL MARKETS-Stocks, euro fall after Fed offers no new stimulus
SINGAPORE, Dec 14 (Reuters) - Asian shares drifted lower and the euro floundered near an 11-month low on Wednesday after the Federal Reserve failed to take any new steps to stimulate growth and offset the chilling effects of Europe's still-unresolved debt crisis.
"Investors continue to avoid risk as they look to possible sovereign debt downgrades in Europe," said Hiroichi Nishi, equity general manager at SMBC Nikko Securities in Tokyo.

COMMODITIES-Oil rises most in a month, wheat rallies too
NEW YORK, Dec 13 (Reuters) - Oil scored its biggest gain in  a month on Tuesday after escalating tensions between Iran and  the West, and wheat and cocoa prices also rose sharply to help  push commodities broadly higher.
"I think a lot of people that have been short wheat are  beginning to cover those short positions," said Al Kluis,  president of Kluis Commodities, a market advisory service.

Oil jumps 2 pct on Iran jitters, OPEC meeting eyed
NEW YORK, Dec 13 (Reuters) - Oil prices rose 2 percent on Tuesday as geopolitical jitters about Iran combined with threats to supply and key shipping lanes sent U.S. crude above $100 a barrel.
"I don't know why markets are reacting negatively since there was no indication of QE3 (quantitative easing) ahead of the meeting, despite rumors running around today," said Dominick Chirichella, senior partner at Energy Management Institute in New York.

NYMEX-Natgas ends higher, firm crude, colder outlook help
NEW YORK, Dec 13 (Reuters) - U.S. natural gas futures ended higher on Tuesday for the first time in three sessions, backed by a strong run in crude and a colder 15-day outlook despite mild near-term weather and concerns about high supplies.
"Colder forecasts for the tail end of the two-week outlook  may have helped support prices, but storage comps (withdrawal  comparisons) to last year are falling short in a big way and we  could head into 2012 with a big storage bubble," said Gelber &  Associates analyst Pax Saunders.

Euro Coal-Prices stable despite oil gain
LONDON, Dec 13 (Reuters) - Physical prompt coal prices were little changed on Tuesday on shrinking liquidity in the holiday season in Europe, despite a rally in oil futures after the International Energy Agency forecast demand growth next year.
"There are very few people in the market and no real interest to trade - the bid/offer spreads show that," one trader said.

20111214 1010 Global Economic Related News.

The  eurozone crisis has not affected the Malaysian economy, said  Second  Finance Minister, Datuk Seri Ahmad Husni Hanadziah. He said the  country was on track to achieve  next year’s economic growth target  between 5% and 6% despite the global economic uncertainty. “ In terms of  our position, we are now focusing on domestic demand such as investment,  which we are doing well currently.”  Ahmad Husni said for this year, Malaysia would be able to achieve the  projected 5% growth rate, given that a lot of the government projects  had been kicked-off in the first half of this year.” (Bernama)

The government aims to create a more competitive environment for the private  sector to thrive through  greater liberalization and deregulation, said  Deputy Prime Minister Tan Sri Muhyiddin Yassin. He said in order to  make the private sector the new engine of growth, businesses need open,  transparent and even-handed economic stewardship. (Bernama)

Japan's tertiary industry index rose 0.6% to 98.7 in Oct (-0.4% in Sep and  +0.1% in Aug). The level remained below the pre-disaster level of 99.3 marked  in Feb. Economists forecast a +0.4% reading. (MNI) 

Hong Kong's  index of industrial production rose by 0.2% yoy in 3Q  (+2.0% in 2Q), the Census and Statistics department said. (Reuters, HK Census  and Statistics department) 

Fitch Ratings said  China faces slower growth in  home sales and  construction next year as top officials meet to map out economic policies.  Lending to developers will remain tightly controlled as the government prolongs  a campaign to stabilize property prices, Fitch said. (Bloomberg) 

China‟s trade restrictions and “interventionist policies” in areas such as  intellectual property rights remain a concern for American companies doing  business in the Asian nation, the US said. China discriminates against foreign  business in “numerous sectors” of the economy, the US Trade Representative‟s  office said in its annual report on Chinese compliance with World Trade  Organization rules. Continued government intervention in its economy has been  a “troubling trend,” the US said. (Bloomberg) 

Philippine exports declined 14.6% yoy to US$4.09bn in Oct (-27% in Sep),  the National Statistics Office said. Economists called for a 16.5% drop.  (Bloomberg) The Philippines needs sustained macroeconomic stability, additional revenues  and increased government spending if it is to equal emerging market peers,  according to the International Monetary Fund (IMF). Periods of growth were  not sustained given the absence of strong and persistent economic reforms, according to an IMF Working Paper titled “The Determinants of Economic  Growth in the Philippines: A New Look.” (Businessworld Online) 

Vietnam's  trade deficit was US$567m in Nov, sharply lower than an initial  estimate of US$700m, following price increases for key export items such as  crude oil, rice, and coffee, the customs department said. Exports in Nov were revised up to US$8.85bn from an earlier estimate of US$8.6bn, while imports  were raised to US$9.42bn, from US$9.3bn earlier, according to a report from  the Finance Ministry-run customs department. (Reuters) 

Exports in  the Philippines fell 14.6% yoy (-27.0% in Sep) to US$4.09bn,  versus consensus expectations of a 16.5% drop. (Bloomberg) 

Money supply growth in the Philippines moderated to 6.9% yoy from 7.4%  in Sep. Bank lending rose to 21.1% yoy (18.9% in Sep), while bank lending net of  RRPs rose 22.2% (21.7% in Sep). (Bloomberg) 

Global staffing services company Manpower said job seekers in 30 of 41  countries and territories can expect a  slower pace of hiring in 1Q12 than in  4Q11.  The index in Singapore fell to 16% from 31%  The index in India increased to 41% from 34%  The index in Singapore fell to 17% from 25% (Bloomberg, Reuters) 

In Indonesia, total local auto sales fell 2.3% yoy to 67,656 units in Nov, and  21.6% mom compared with 86,345 units in Oct. (Bloomberg, Reuters) Total Indonesian motorcycle sales fell to 642,126 units in Nov from 715,176  units in Oct. (Bloomberg) 

Indonesia: Poised to pass land law, bolstering growth prospects

Indonesia’s parliament may approve this week a land-acquisition law that will allow the government to accelerate road, port and airport projects, bolstering President Susilo Bambang Yudhoyono’s efforts to boost growth. Lawmakers will probably approve the bill on 16 Dec, Taufik Hidayat, vice chairman of the Land Procurement Parliamentary Special Committee, said in a telephone interview. After Yudhoyono signs it into law, the government will be empowered to take over land for development while owners will be guaranteed adequate compensation, he said. (Bloomberg)

India: Biggest borrowers sending deals to four-year low
Indian corporate bond sales fell to the lowest level for December since 2007 as company treasurers delayed new offerings until the central bank confirms it’s finished raising interest rates. A drop in borrowing costs would make it cheaper for companies to raise funds for the USD1trn of road and power projects needed to support the expansion of Asia’s third-largest economy. The extra yield investors seek to hold top-rated Indian company notes over government debt declined from a seven-week high reached on 8 Dec, while the comparable spread in China widened. (Bloomberg)

UK: Inflation slowed in November on food, transport costs
UK inflation slowed for a second month in November, held down by food and transport prices as the prospect of another recession weighed on the economy. Bank of England officials expect inflation to drop “sharply” toward the 2% target next year and have indicated the risks from the euro-area crisis may prompt another increase in stimulus in February. The Organization for Economic Cooperation and Development has said the economy may already be shrinking. (Bloomberg)

Portugal: Portugal may nationalize banks in historic irony
Portugal’s government may have to partly nationalize crisis-hit banks, even as it sells assets as part of the EUR78bn (USD102.8bn) bailout agreement. Portuguese lenders’ stock-market value has tumbled to historic lows amid Europe’s deepening sovereign crisis and requirements for banks to bolster capital and mark to market the prices of euro-region debt holdings. The nation’s three biggest banks have lost a combined EUR6.3bn, or 68%, of market value this year, while Portugal’s 10-year bond yield almost doubled to 13%. (Bloomberg)

Eurozone: EU banks selling ‘crown jewels’ risks undermining growth
European banks, under pressure from regulators to bolster capital, are selling some of their fastest-growing businesses to competitors from outside the region. Spain’s Banco Santander SA, Belgium’s KBC Groep NV and Germany’s Deutsche Bank AG are accelerating plans to exit profitable operations outside their home markets. Santander, which said in October it needs to plug a EUR5.2bn (USD6.9bn) capital gap, sold its Colombian unit last week to Chile’s Corpbanca for USD1.16bn. Deutsche Bank is weighing options including a sale of most of its asset-management unit, while KBC may dispose of businesses in Poland. (Bloomberg)

Eurozone: Fifth European solution failing to ease stress
The fifth agreement in 19 months intended to resolve Europe’s sovereign crisis is failing to ease stress in the debt markets. European leaders at last week’s summit in Brussels stopped short of providing the comprehensive solution that investors have sought and didn’t receive unanimous support for the measures they did take. Meetings in May 2010 that led to the creation of the European Financial Stability Facility and deals to expand the bailout fund in March, July and October failed to stop the rot spreading from Greece. (Bloomberg)

US: Treasuries gain on auction demand, Fed refraining from action
Treasuries rose after the Federal Reserve refrained from taking new actions to boost growth and the refuge appeal of US debt boosted demand to the highest since April 2010 at yesterday’s USD21bn 10-year note auction. Yields on current 10-year notes reached a two-week low after the sale’s bid-to-cover ratio, which gauges demand by comparing total bids with the amount offered, reached 3.53, the strongest level in 20 months. Concern than Europe’s sovereign-debt crisis is far from a resolution damped risk appetite. (Bloomberg)

US: Retail sales rose at slower pace in November
Retail sales rose in November at the slowest pace in five months, indicating American consumers were trying to live within their means heading into the holiday shopping season as wages dropped. The 0.2% gain in purchases fell short of the 0.6% median forecast of economists surveyed by Bloomberg News and followed increases in the prior two months that were larger than previously estimated, according to data from the Commerce Department in Washington. Other reports showed inventories climbed in October and job openings fell. (Bloomberg)


The  Fed left unchanged its statement that economic conditions are likely to  warrant “exceptionally low” interest rates “at least through mid 2013.” The  central bank maintained its target overnight interest rate at a range of zero  to 0.25%. (Bloomberg)

The  US government budget deficit fell 9% to US$137.30bn in Nov 11  (US$150.39bn in Nov 10), the Treasury Department reported. Economists had  forecast a US$139bn gap. (Reuters)

There were 3.3m  US job openings on the last business day of Oct, little  changed from 3.4m in Sep. (US Bureau of Labor Statistics)

20111214 1009 Malaysia Corporate Related News.

Malaysia's FELDA in talks with global trading houses for strategic tie-up
KUALA LUMPUR/SINGAPORE, Dec 13 (Reuters) - Malaysia's Federal Land Development Authority (FELDA), the state-run plantation operator, is discussing a strategic alliance with five global trading houses, including Archer Daniels Midlands Co , Bunge Ltd  and Cargill Ltd [CARG.UL], two sources with direct knowledge of the deal told Reuters on Tuesday.
The strategic tie-up, likely by February, is expected to shore up investor interest ahead of FELDA's $2 billion listing of its agri- business arm FELDA Global in mid-2012, turn the unit into a commodity trading powerhouse, sources said.

TNB ready to buy gas at market price, says Che Khalib
TNB is ready to purchase gas for power generation at open market prices upon completion of the liquefied natural gas regassification terminal in Malacca by 2012. President/CEO Datuk Seri Che Khalib Mohamad Noh said the company had been talking to several gas suppliers including Exxon Mobil Corp and Royal Dutch Shell for a secured supply. (Malaysian Reserve)

Mah Sing says JV to develop KL land still valid
Mah Sing Group said its JV agreement with Asie SB and Usaha Nusantara SB for the proposed development of a 4.08-acre land along Jln Tun Razak in KL had not lapsed and it has returned the RM6.4m deposit back to the two companies as a result. The two companies took the position that Mah Sing’s wholly-owned unit, Grand Pavilion Development SB, had failed to meet conditions precedent in the JV agreement and assumed the agreement had lapsed. (Malaysian Reserve)

SP Setia’s proposed land buy hits a snag
SP Setia’s proposed acquisition of 1,010.5 acres in Ulu Langat, Selangor for RM330.1m hit a snag when the vendor did not agree to an extension of time for the fulfillment of conditions precedent to the transactions that included the approval of the Estate Land Board for the sale and transfer of the land in order to complete the deal. (Financial Daily)

SP Setia president and CEO  Tan Sri Liew kee Sin has been awarded the  Malaysian Ernst & Young Entrepreneur of the Year 2011. Liew would represent  Malaysia to compete for the coveted Ernst & Young World Entrepreneur of the  Year award at the annual award in Monte Carlo, Monaco next year. According to  the panel of judges, Liew stands out for his innovative thinking - embodying the  true spirit of entrepreneurial excellence and commitment to continue making a  difference in people's lives. (Starbiz)

IAG to buy into Kurnia unit
General insurance company Kurnia Asia will likely announce its decision to sell an equity stake it its wholly-owned subsidiary Kurnia Insurans (M) to Insurance Australia Group (IAG) this week. StarBiz quoted sources as saying that Kurnia was finalizing a deal to dispose of an equity stake in its general insurance business to the largest insurer in Australia and NZ. (StarBiz)

JCorp to take QSR private?
Johor Corp (JCorp) plans to take QSR Brands private, people familiar with the matter said yesterday. The deal may also involve KFC Holdings (M), the source said. At least two independent sources told BT that a deal was in the offing. JCorp owns 53% of Kulim, which in turn owns some 57.5% of QSR. QSR, in turn, owns 50.6% of KFC, the country’s top fast food operator. Top executives of Kulim and QSR, however, said they had no knowledge on the matter. (BT)

Proton: Potential suitors have approached Khazanah
Proton Holdings confirmed yesterday that potential suitors have approached its major stakeholder, Khazanah, to buy the state-owned investment fund’s interest in the carmaker. Proton told Bursa Malaysia that Khazanah had informed that it had received some enquiries, proposals and expression of interest in Proton. Khazanah will make necessary disclosure at an appropriate time. (BT)


Proton Holdings said Khazanah Nasional will make the necessary disclosure  at the appropriate time pertaining to the sale of its stake in Proton to  DRB-Hicom. Proton said it was informed this by Khazanah after making due  enquiry with its major shareholder following news reports that Khazanah was  selling its 42.7% stake in Proton to DRB-Hicom. (Bernama, BT)

Proton Holdings advisor Tun Dr Mahathir Mohamad said he would like to  see the company with  the biggest amount of money to buy the stake that  Khazanah plans to sell. Dr Mahathir said he is not okay with an MGO because  the cost will be very high and that would make turning it around very difficult. “I  don‟t want Proton to be hurt, I don‟t care if others are hurt, but not Proton,” he  added. (Bernama)


Thai, Indonesian IPOs on schedule
AirAsia Group has clarified that the proposed IPOs of its Indonesian and Thailand affiliates are on schedule and have not been delayed. AirAsia said in a statement yesterday that its public relations team had been misquoted in recent interview. Group CEO Tan Sri Tony Fernandes said both IPOs were on schedule with regard to the due diligence process and obtaining regulatory approval. (BT)


Sarawak Energy Bhd (SEB) plans to borrow an additional RM1.5bn in  January 2012 in the form of sukuk under its RM15bn Sukuk Musyarakah  Programme. This is in addition to its issuance of RM3bn sukuk in June this year  which was oversubscribed by three times. The RM1.5bn would be used by SEB to  fund the progress payments of some of its power plants and transmission lines  as well as other capital expenditure requirements. (Star Biz)

Perodua is offering assistance to all Perodua vehicle owners who were affected  by the floods in Selangor, Terengganu and Kelantan recently. This includes  towing services, discounts on selected parts and free inspections to determine  the amount of damage done to the vehicle.  Perodua Managing Director Datuk Aminar Rashid Salleh said the  company offers free towing service up to a maximum of RM100 to the  nearest Perodua service outlet.  In addition, Perodua offers 20% off selected parts to Perodua owners  whose vehicles are damaged by the floods. (Bernama, BT)

DRB-Hicom intends to launch a world-class luxury holiday concept property  development project on  Pulau Rebak in Langkawi for domestic and foreign  markets. One of the strategies for Pulau Rebak is developing „boutique‟ luxury  holiday residences which would be sold to specific buyers from within and  outside the country. (Bernama)

RAM Ratings had reaffirmed its AAA rating on  KLIA‟s RM4.06bn Bai‟  Bithaman Ajil Notes Issuance Facility (2003/2015) with a stable outlook. This  reaffirmation was based upon the unconditional and irrevocable guarantee by  the government to repay all amounts due under the KLIA Notes Facility. As at  end-June 2011, the outstanding amount owed was RM2.06bn. (Star Biz)

Supermax has received the green light from Bursa Malaysia for the listing of  and quotation for 340.0m shares under its bonus issue proposal. The proposed  bonus issue was on the 1-for2 basis. (Star Biz)

Kretam Holdings has proposed to dispose of its subsidiary  Innosabah  Securities to  UOB-Kay Hian for RM56.68m. The proposed disposal will  enable Kretam Group to focus on its core business operations, namely oil palm  plantations. The proposed disposal is expected to be completed by mid-2012.  (Bernama)

Scomi Engineering has signed a non-binding MoU with  Montagense  Projetos Especiais SA (MPE) and Brasell Gestao Empresarial, LTDA, to  set up a joint-venture  company in Brazil. The proposed activities include  monorail manufacturing and participating in other rail-related projects. The  government is expected to call at least another 20 tenders in the next 24 months  for urban transport projects, of which 35% are projected to be monorail systems.  (Bernama)

SAAG Consolidated fixed the price of its final tranche of placement shares at  10 sen a share, a 46.41% premium to its current five-day average share price of  6.8 sen a share. The company will place out 2.48m shares in the exercise.  (Malaysian Reserve)


Axiata: Ties up with Aussie firm to bid for RM2b DTTB project. Axiata Bhd has signed a teaming agreement with Broadcast Australia to bid for the RM2b digital terrestrial television broadcasting (DTTB) project. The agreement sees Celcom and Broadcast Australia forming a partnership that will bid for the design, construction and long-term operation of the digital television infrastructure project. The consortium is expected to invest some RM500m in the DTTB project which will be borne by both parties. (Source: The Star)

I-Bhd: To set up JV with Everbright International China. I-Bhd entered into a strategic alliance with China-based Everbright International China yesterday to co-develop 12.14ha in 1-City, Shah Alam, via a JV. Everbright will have a 70% share-holding in the venture and I-Bhd holds the remaining 30%. The first phase is a commercial hub with a GDV of RM1.5b comprising of one million sq ft shopping mall and two million sq ft of mixed residential, MSC offices and educational institutions. (Source: The Edge Financial Daily)

20111214 0947 Global Market Related News.

Asia Stocks Drop as Fed Refrains From Stimulus (Source: Bloomberg)
Asian stocks (MXAP) dropped for a second day as the Federal Reserve refrained from taking new measures to spur growth and U.S. retail sales rose at the slowest pace in five months, clouding the earnings outlook for Asian exporters. Sony Corp. (6758), which generates 20 percent of its sales in the U.S., fell 1.5 percent in Tokyo. Samsung Electronics Co., South Korea’s biggest exporter of consumer electronics, declined 1.9 percent in Seoul. BHP Billiton Ltd. (BHP), the world’s biggest mining company, dropped 1.3 percent in Sydney after metal prices fell. “Nothing came out of the Fed meeting,” said Shintaro Takeuchi, portfolio investment group manager at Tokio Marine & Nichido Fire Insurance Co. that manages $111 billion in assets. “That’s negative for stocks.”

Japanese Stocks Decline For Second Day as Fed Doesn’t Offer New Stimulus (Source: Bloomberg)
Dec. 14 (Bloomberg) -- Japanese stocks fell for a second day after the Federal Reserve offered no new measures to spur growth and U.S. retail sales rose at the slowest pace in five months, clouding the earnings outlook for Asia’s exporters. Sony Corp. (6758), which generates 20 percent of its sales in the U.S., fell 1.5 percent. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest lender by market value, lost 1.2 percent. Inpex Corp. (1662), Japan’s No. 1 energy explorer, dropped 0.6 percent even after oil prices rose. The Nikkei 225 Stock Average (NKY) fell 0.7 percent to 8,495.02 as of 9:12 a.m. in Tokyo. The broader Topix index lost 0.6 percent to 736.45.

U.S. Stocks Decline as Fed Refrains New Actions (Source: Bloomberg)
U.S. stocks retreated, reversing an earlier advance for the Standard & Poor’s 500 Index, after Federal Reserve policy makers refrained from taking new actions to bolster growth at the world’s largest economy. Nine out of 10 groups in the S&P 500 (SPXL1) declined, led by companies most-dependent on economic growth. Sears Holdings Corp. (SHLD), Alcoa (AA) Inc. and Bank of America Corp. (BAC) slumped at least 2.3 percent. Best Buy Co. (BBY), the largest consumer-electronics retailer, tumbled 15 percent as discounts hurt gross margin. Amazon.com Inc. (AMZN) dropped 4.8 percent as Goldman Sachs Group Inc. said estimates for the biggest Internet retailer need to fall. The S&P 500 slid 0.9 percent to 1,225.73 at 4 p.m. New York time, reversing a gain of 1.1 percent and falling to the lowest level since Nov. 29. The Dow Jones Industrial Average retreated 66.45 points, or 0.6 percent, to 11,954.94. The Russell 2000 Index of small companies lost 2.1 percent to 718.06.

European Stocks Advance on German Investor Confidence, Spanish Debt Sale (Source: Bloomberg)
European stocks climbed, rebounding from their biggest slide in three weeks, as Spain sold more securities than it had planned at a debt auction and a report showed that investor confidence in Germany improved. Royal Dutch Shell Plc and BP Plc (BP/) gained more than 1.5 percent, dragging a gauge of oil producers higher. Banks and insurers limited gains on the Stoxx 600 with Banco Santander SA (SAN) and BNP Paribas (BNP) SA, the largest lenders in Spain and France, respectively, dropping at least 1.5 percent. The Stoxx Europe 600 Index rose 0.5 percent to 237.30 at the close. The gauge pared an advance of as much as 1.2 percent as Reuters reported that German Chancellor Angela Merkel has rejected increasing the upper limit for the funds held by Europe’s planned permanent rescue facility, citing sources in Merkel’s ruling coalition. The gauge has still declined 14 percent this year amid concern the euro area’s sovereign-debt debt crisis will derail the global economic recovery.

Fed: U.S. Economy ‘Expanding Moderately’ (Source: Bloomberg)
Federal Reserve policy makers said the U.S. economy is maintaining its expansion even as the global economy slows, while refraining from taking new actions to lower borrowing costs. “The economy has been expanding moderately, notwithstanding some apparent slowing in global growth,” the Federal Open Market Committee said in a statement at the conclusion of its meeting today in Washington. “While indicators point to some improvement in overall labor market conditions, the unemployment rate remains elevated.” Signs of an improving U.S. economy are giving officials led by Chairman Ben S. Bernanke leeway to keep policy unchanged as they discuss ways to improve how they communicate the likely future path of interest rates to the public. At the same time, unemployment at 8.6 percent and risks to global growth from the European debt crisis may prompt more easing in coming months.

Retail Sales Climb Less Than Forecast (Source: Bloomberg)
Retail sales rose in November at the slowest pace in five months, indicating American consumers were trying to live within their means heading into the holiday shopping season as wages dropped. The 0.2 percent gain in purchases fell short of the 0.6 percent median forecast of economists surveyed by Bloomberg News and followed increases in the prior two months that were larger than previously estimated, according to data from the Commerce Department today in Washington. Other reports showed inventories climbed in October and job openings fell. Demand for autos, the latest fashions and electronics propelled the increase in spending last month, while households cut back on groceries and restaurant meals, showing how limited job and income gains are holding consumers back. Retailers like J.C. Penney Co. are pushing discounts to drum up business, a sign of a lack of inflation that allowed the Federal Reserve today to hold interest rates near zero.

Treasuries Climb on 10-Year Auction Demand, Fed Refraining From New Action (Source: Bloomberg)
Treasuries rose after the Federal Reserve refrained from taking new actions to boost growth and the refuge appeal of U.S. debt boosted demand to the highest since April 2010 at today’s $21 billion 10-year note auction. Yields on current 10-year notes reached a two-week low after the sale’s bid-to-cover ratio, which gauges demand by comparing total bids with the amount offered, reached 3.53, the strongest level in 20 months. Concern than Europe’s sovereign- debt crisis is far from a resolution damped risk appetite. “There is no Fed activity being priced in until 2013,” said Bret Barker, a portfolio manager at Los Angeles-based TCW Group Inc., which manages about $115 billion in assets. “The strength of the 10-year auction has been the driver of price action today.”

U.S. Stocks Fall as Dollar, Treasuries Gain Following Fed Policy Statement (Source: Bloomberg)
U.S. stocks fell, while the dollar and Treasuries rallied, as the Federal Reserve refrained from taking more steps to stimulate the economy and concern grew that European leaders won’t agree on ways to expand the region’s bailout capacities. Gold slumped to a seven-week low. The Standard & Poor’s 500 Index lost 0.9 percent to 1,225.73 at 4 p.m. in New York, wiping out a gain of as much as 1.1 percent. The Dollar Index rose 1 percent, topping 80 (DXY) for the first time since January, as the euro fell on reports that German Chancellor Angela Merkel rejected boosting Europe’s permanent bailout fund. Ten-year Treasury yields slipped five basis points to 1.97 percent following stronger-than-average demand at an auction. The S&P GSCI Index of commodities rose 1.5 percent after surging as much as 2.3 percent.
Stocks headed lower as Fed policy makers said the U.S. is maintaining growth even as the global economy slows and defied speculation from some investors that the central bank would signal plans for a third round of large-scale asset purchases known as quantitative easing, or QE3. The Fed said it would continue its exchange of $400 billion of short-term debt with long-term securities to lengthen the average maturity of its holdings, a move dubbed Operation Twist.

U.S. Business Inventories Rose 0.8% in October (Source: Bloomberg)
Inventories in the U.S. rose in October by the most in five months as companies moved to bring stockpiles in line with demand. The 0.8 percent gain followed little change in stockpiles a month earlier, the Commerce Department said today in Washington. The October increase matched the median projection in a Bloomberg News survey. Sales climbed 0.7 percent during the month. Businesses kept enough goods on hand to last 1.27 months at the current sales pace in October, close to its lowest level of the year. Retail sales also rose in November as Americans bought more Apple Inc. (AAPL) iPhones and demand for cars improved, another report showed today. “We think inventories will add modestly to growth in the fourth quarter after subtracting in the third,” Sal Guatieri, a senior economist at BMO Capital Markets in Toronto, said before the report. “The economic outlook appears to be improving, so there is reason for businesses to expand their inventories.”

South Korea’s Unemployment Rate Held at 3.1% in November From Month Ago (Source: Bloomberg)
South Korea’s unemployment rate held at a three-year low last month as service industries hired more workers to meet growing demand. The jobless rate stood at 3.1 percent in November, unchanged from October, Statistics Korea said today in Gwacheon, south of Seoul. The median estimate in a Bloomberg News survey of 10 economists was for a rate of 3.2 percent. South Korea’s job market is showing resilience even as the deepening debt crisis in Europe and slowing global growth threaten to cool an economy that has grown for 11 straight quarters. Industrial production unexpectedly fell in October while department store sales also dropped. “Labor market conditions will likely worsen due to rising uncertainties in Europe,” Lee Sung Kwon, an economist at Shinhan Investment Corp. in Seoul, said before the release. “The central bank and government may try to support growth with lower interest rates and more fiscal spending.”

20111214 0946 Global Commodities Related News.

Malaysia's FELDA in talks with global trading houses for strategic tie-up
KUALA LUMPUR/SINGAPORE, Dec 13 (Reuters) - Malaysia's Federal Land Development Authority (FELDA), the state-run plantation operator, is discussing a strategic alliance with five global trading houses, including Archer Daniels Midlands Co , Bunge Ltd  and Cargill Ltd [CARG.UL], two sources with direct knowledge of the deal told Reuters on Tuesday.
The strategic tie-up, likely by February, is expected to shore up investor interest ahead of FELDA's $2 billion listing of its agri- business arm FELDA Global in mid-2012, turn the unit into a commodity trading powerhouse, sources said.

Buffett’s Surging Silo Sales Boosting Grain Costs for Cargill: Commodities (Source: Bloomberg)
In a year of record agricultural earnings in the U.S., Steve Ruh spent a chunk of his income to build what’s become an increasingly common sight at farms across the Midwest -- grain storage bins. The Illinois corn grower started with 250,000 bushels (2 million gallons) of storage capacity in 2009 and added 100,000 this year to avoid wasting precious harvest time in line at grain elevators. He can now hold crops in gluts, hoping to sell at higher prices when grain is scarcer, and is storing half the 400,000-bushel corn crop this season at his farm in Sugar Grove. “I like the control,” said the 42-year-old, who works 3,000 acres (1,214 hectares) of corn, soybeans, wheat and alfalfa. “This allows me to market 12 months out of the year instead of half that time.”
Corn-belt farmers like Ruh have pushed up U.S. oilseed and grain storage capacity to the highest in two decades, enriching bin makers from GSI Holdings Corp. to Brock Grain Systems, which is controlled by Warren Buffett’s Berkshire Hathaway Inc., while raising costs for Cargill Inc. and other grain traders.

Corn (Source: CME)
US corn futures end slightly higher in a see-saw session, with a rally in crude oil providing support. The market has little fresh supportive news to rally on, but the gains in crude, along with uncertainty about South American soy crops, provided underlying support. Analysts add the market has not been quite so sensitive to shifting sentiment on Europe. Still, traders note that export demand is weak and unlikely to improve soon. CBOT Dec. corn ends up 3c to $5.88 1/2, most-active March corn ends up 1/2c to $5.94 1/2.

Wheat (Source: CME)
US wheat futures rallied, driven by traders covering short positions in the absence of fresh bearish news. Wheat was supported by optimistic outlooks for futures demand, as US offers for white wheat in the most recent Egyptian wheat tender were competitive, a signal that prices are near fair market value, analysts say. Spillover support soybeans, as well as higher crude oil futures served as an incentive for wheat traders liquidate some of large short positions held in the market, analysts add. CBOT March wheat ended up 6 1/4c at $6.00 1/2/bushel, March MGEX wheat finished up 6 1/2c at $8.30, and March KCBT wheat ended up 3 3/4c at $6.56.

Rice (Source: CME)
U.S. rice ends up slightly in a modest short-covering bounce following recent losses. Weak demand and ample world supplies have sent prices tumbling throughout the fall, but traders say that at current prices many farmers may decide to plant less rice. Jan CBOT rice ends up 5 1/2c to $13.85. The contract is down nearly $5 from a September high.

US soy rises for 2nd day on LatAm weather concerns
SINGAPORE, Dec 13 (Reuters) - U.S. soybeans rose  for a second straight day as concerns over dry weather in South America supported the market but the gains were capped by economic uncertainty fuelled by Europe's debt crisis.
"Soy is a key player at the moment, it is recovering from Friday's losses due to some concerns about South American crop weather," said Ker Chung Yang at Phillip Futures in Singapore.

Vietnam's 2012 rice export seen steady, to ship to Malaysia
HANOI, Dec 13 (Reuters) - Vietnam will export 300,000 tonnes of rice to Malaysia in 2012, part of its plan to keep exports steady and retain its market share in the face of competition from cheaper Indian and Pakistani grain.
Vietnam targets exports of 7 million tonnes of rice next year, matching the record-high volume expected in 2011, a state-run newspaper quoted a government minister on Tuesday as saying.

Indonesia 10/11 rice output revised down-attache
Dec 12 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Indonesia:
"Post recommends a revision in marketing year (MY) 2010/11  Indonesian rice production estimates to 35.5 million tonnes of  milled rice equivalent, down from an earlier estimate of 37  million tonnes. This adjustment is based on the third forecast  figures recently released by the Indonesian National Statistics  Agency (BPS). Post also estimates Indonesian rice imports will  increase by over 140 percent to 2.775 million tonnes in MY  2010/11 compared to 1.15 million tonnes in MY 2009/10."

Viterra sees strong 2012 grain handling volumes
WINNIPEG, Manitoba, Dec 12 (Reuters) - Grain handler Viterra said on Monday that it expects to have strong volumes of grain to handle and market in 2012, after farmers harvested big crops in Western Canada and South Australia.
According to government reports, South Australia harvested a record large grain crop in 2011, while Western Canada produced a 10 percent larger grain harvest this autumn than last year.

World Bank: Agriculture Prices Hit By Improved Supply (Source: CME)
Agriculture prices fell by 3.9% in November on improving supply conditions and weak demand, the World Bank said in its monthly Commodity Markets Review, the sixth decrease in the past seven months. Sugar fell 5.6% following news that Brazilian and Russian sugar crops will be much larger than anticipated, the World Bank said, while India and the European Union announced intentions to export sugar, putting additional pressure on global prices. The World Bank added that cocoa prices decreased 5.7% due to a large crop in West Africa and further concerns about demand in major consuming regions, particularly Europe. Meanwhile, cotton prices fell 5% on continued weak demand from the textile industry and robust supply gains. Indeed, agriculture was the worst performing sector in the Dow Jones-UBS Commodity Index Total Return in November, falling 6.2% over the month, as concerns over a slowdown in global growth reduced demand expectations.
"While macroeconomic concerns are likely to continue to operate as headwinds, fundamentals remain strong for many key commodities [and] the agriculture sector also remains vulnerable to supply shocks," Nelson Louie, Global Head of Commodities in Credit Suisse's Asset Management division, said Monday.

Australia 2011-12 Wheat Crop Could Top 29 Mln Tons (Source: CME)
Australia's wheat output could top 29 million metric tons, higher even than an official record estimate of 28.3 million tons, this crop year, Steve Burt, managing director of trading and exporting concern PentAG Nidera Pty. Ltd., said. Burt's estimate highlights the abundant supplies of wheat available after what looks to be two successive record crops in Australia, usually one of the top five suppliers to the global trade. The wheat crop in the year that ends March 31"will be in the vicinity of 29 million tons," adding to the already massive amount of wheat available from Australia, he told Dow Jones Newswires by telephone. "There's very few stories where yields have disappointed." When combined with the carryover of old-crop inventories of more than 8.0 million tons into the new marketing year that began Oct. 1, the Australian industry has a big export task ahead of it, he said.
"It is a very big crop on top of a big crop [in 2010-11], and we need to be very competitive to access non-traditional markets for Australia wheat to achieve Abares's 21.6 million-ton export estimate," which the official government forecaster issued on Dec. 6 for this marketing year, he said. The rainfall at harvest isn't nearly as bad as last year's, he said. Burt estimated about three quarters of the national wheat crop has been harvested and stored, and about 3.0 million tons might have been downgraded to livestock feed from the usual milling grades for human consumption, he said. "It isn't as bad as last year, but it is on top of last year so it's adding to a bad situation" in terms of plentiful supplies both within Australia and overseas, putting downward pressure on domestic and global prices, he said.

EU Set For Good Harvest In 2011-12 (Source: CME)
The European Union is set to have a good harvest this year, with total cereal production pegged at more than 283 million metric tons, farming lobby group Copa-Cogeca said, although it warned of some quality concerns due to poor weather conditions. The bloc's soft wheat production in the 2011-12 crop year is estimated at 127.98 million tons, Copa-Cogeca said, with corn output expected to hit 64.78 million tons. "Forecasts for next year show production is stable, with the [total cereals] sowing area predicted to total 55.75 million hectares, but this will not reach the levels of 2008," said Ian Backhouse, chairman of the lobby group's cereals working party. He added that this year's good corn harvest has encouraged farmers to maintain the same sowing area for 2012 but that the market balance is expected to stay tight.
Copa-Cogeca also warned that there is uncertainty in the cereals outlook as input prices are continuing to squeeze producers on the continent, especially through fertilizer prices which are near the record highs of 2009. "Copa-Cogeca is consequently calling for more transparency on the fertilizer market and believes more competition is required in this monopolistic world market," Backhouse said.

La Nina In Place In Pacific (Source: CME)
A La Nina climate event remains in place over the Pacific Ocean, with a key indicator--the Southern Oscillation Index--continuing its steady rise, the government's Bureau of Meteorology reported Tuesday. The SOI registered a value of +16.8 in the 30 days ended Dec. 10, rising from +14.3 in the 30 days ended Dec. 3 and from +13.8 in November, which was the highest monthly value since April, when a previous La Nina was in rapid decline, the bureau reported in a weekly tropical climate note. Sustained positive values of the SOI above +8 may indicate a La Nina. The SOI during the 2010-11 La Nina peaked at more than 30. "Forecast models surveyed by the Bureau suggest the la Nina event is likely to persist for the majority of the north Australian wet season," which ends in April, the bureau reported. La Nina periods are typically associated with above-average rainfall across northern Australia during the wet season, while daytime temperatures are typically cooler from December onward, the bureau reported.
"The risk of tropical cyclone formation in the Australian region is likely to remain above average for most of December, with increased rainfall across northern Australia during this period," it said. There are early indications of the monsoon trough developing in the southern hemisphere, and as is typical for La Nina years, it is likely that the "top end" will come under the influence of the monsoon before Christmas, it said.

Soybeans, Corn Rise in Chicago as Dry Weather Threatens South America Crop (Source: Bloomberg)
Soybeans rose the most in more than a week and corn gained for the first time in three sessions as adverse weather threatens to reduce crop yields in South America. Dry weather in the next 10 days will reduce soil moisture and increase stress on crops in parts of Argentina, Paraguay and Brazil, T-Storm Weather LLC said in a report. About 40 percent of the growing area has been drier than normal since Nov. 15 in Brazil, which the U.S. government ranks as the biggest global shipper of soybeans this year. “After a fast start to planting crops in the last two months, the drier weather is becoming a concern,” Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago, said in a telephone interview. “People have been betting on record or near-record production in South America, and that is now coming into question.”

Vietnam says actual Nov coffee exports at 70,700 tonnes, higher than 50,000 T forecast earlier- Customs
HANOI, Dec 13 (Reuters) - Vietnam exported 70,700 tonnes of coffee in November, more than double the previous month and higher than the 50,000 tonnes the government had forecast for the month, the customs department said on Tuesday.
Vietnam exported 32,000 tonnes of coffee in October. November's shipment raised the amount of coffee exported since January to 1.1 million tonnes, or 18.33 million 60-kg bags, which represents a 4.4 percent increase on the same year-ago period, Vietnam Customs said in a monthly report.

China Nov cotton imports up 199.6 pct on yr - industry
BEIJING, Dec 13 (Reuters) - China, the world's top cotton consumer, imported 378,200 tonnes of the fibre in November, a rise of 199.6 percent from a year earlier, according to customs data cited by an industry website (www.cncotton.com).
The November figure brings the country's total imports in the first 11 months to 2.57 million tonnes, up 8.4 percent year on year, the data showed.

Indonesia 11/12 coffee output seen down 20 pct-attache
Dec 12 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Indonesia:
"Indonesian coffee production is predicted to decline by 20  percent to 7.5 million 60-kg bags in MY 2011/2012. Indonesian  domestic coffee consumption has grown from 1.78 million bags in  MY 2009/2010 to 1.9 million bags in MY 2011/2012. Indonesian  coffee exports are expected to decline by 23 percent to 6.35  million bags in MY 2011/2012."

Dry weather is concern in most Ivorian cocoa zones
ABIDJAN, Dec 12 (Reuters) - Dry, warm weather in most Ivory Coast cocoa-growing regions raised worries production of the main ingredient in chocolate could drop after January, farmers said on Monday.
Ivory Coast is the world's top cocoa grower, accounting for more than a third of global supply.

op cocoa trader Olam warns of global deficit
LONDON, Dec 12 (Reuters) - Leading cocoa trader Olam International Ltd  warned on Monday of a tightening global market in 2012, with supplies moving into deficit after this year's record surplus drove prices too low.
Spot cocoa futures prices in New York and London surged 10 percent off their session lows after Gerry Manley, the head of Olam's cocoa division, told Reuters he expects world 2011/12 production to fall around 100,000 tonnes short of grindings. Other traders have generally seen the market as balanced.

Olam sees 2011/12 global cocoa deficit of 100,000 tonnes
LONDON, Dec 12 (Reuters) - World 2011/12 cocoa production is expected to fall around 100,000 tonnes short of grindings, as the market switches back to deficit after a record surplus the previous year, said the head of cocoa at Olam International Ltd .
"We think there's a likelihood the deficit could increase; the arrivals at the moment look good and we believe that's because of some carry over from last year," Gerry Manley told Reuters, forecasting a dramatic drop in arrivals from January onwards.

Oil Trades Near One-Week High in New York Before OPEC Meeting on Output (Source: Bloomberg)
Oil traded near the highest level in one week in New York amid signs the Organization of Petroleum Exporting Countries will set a production ceiling when it meets in Vienna today. Futures were little changed after climbing the most in almost four weeks yesterday following a report from the state- run Fars news agency that Iran will hold drills to practice closing the Strait of Hormuz. Iranian Foreign Ministry spokesman Ramin Mehmanparast said speculation about the closure was untrue. OPEC members agreed that the group should set a output ceiling for the first half of next year of 30 million barrels a day, said a delegate who declined to be identified. Crude for January delivery was at $99.95 a barrel, down 19 cents, in electronic trading on the New York Mercantile Exchange at 10:58 a.m. Sydney time. The contract yesterday surged 2.4 percent to $100.14, the highest close since Dec. 7. Prices are 9.4 percent higher this year after climbing 15 percent in 2010.

Gold Extends Slump to Seven-Week Low as Fed Refrains From More Stimulus (Source: Bloomberg)
Gold futures slumped to a seven-week low after the Federal Reserve refrained from taking new actions to boost growth. Most U.S. stocks fell and the dollar extended gains against the euro after the Fed took no additional monetary policy steps to stimulate the U.S. economy. The central bank said the U.S. is “expanding moderately, notwithstanding some apparent slowing in global growth.” “There were no substantial changes to the policies and, hence, nothing to boost gold,” William O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey, said in a telephone interview. “The cautious statements from Fed will continue to push investors towards risk-off trade.”

20111214 0945 Soy Oil & Palm Oil Related News.

Indonesia palm oil exports up 42.5% to 1,203,491 tonnes for the month of Nov 2011 vs Oct 2011 - Industry source.

Soybeans (Source: CME)
US soybean futures end higher, continuing to recover from prior declines as traders view the market as oversold. After dropping to 14-month lows recently, the market has found price support, with South American weather concerns, supportive influences from external financial markets encouraging traders to cover some previously established short positions, analysts say. Ability of futures to find support despite bearish supply outlooks from USDA eased the negative momentum that built up in recent weeks, analysts add. CBOT Jan soy ended up 6 1/2c at $11.18 1/2/bushel.

Soybean Meal/Oil (Source: CME)
Soy product futures ended mixed, with soymeal rising with soybeans. Soymeal was buoyed by traders unwinding short positions established in long soyoil/short soymeal spreads in recent weeks, analysts say. Soyoil drifted lower on the spread action, shunning supportive influences from rallying energy prices, analysts add. CBOT Jan soymeal end up $3.90 to $283.40/short ton; Jan soyoil finished down 0.07c at $492.50c/lb.

Palm oversold, up 1 pct,capped by Euro,stocks woes
JAKARTA, Dec 13 (Reuters) - Palm futures rose almost 1 percent, as traders cited over-selling in the previous session and firmer comparable vegetable oils, with Euro zone debt and stocks data holding back greater gains.
"The market is ok because yesterday it was a bit overdone," said a Kuala Lumpur based trader. "Soybean was not that bad last night."

China Dec soy imports seen at 5.39 mln T-Mofcom
BEIJING, Dec 13 (Reuters) - China, the world's largest soy buyer, is expected to import 5.39 million tonnes of the oilseed in December, according to the latest estimate by the commerce ministry published on Tuesday.
The figure is slightly lower than 5.7 million tonnes of actual arrival in November, but much higher than 3.81 million tonnes in October.

AgRural consultancy trims Brazil soy forecast
SAO PAULO, Dec 12 (Reuters) - Brazil soy crop will turn out 73.1 million tonnes of soy in the 2011/12 season, consultancy AgRural said on Monday, half a million tonnes less than its November view due to the smaller area it now expects to be planted.
The consultancy maintained its November forecast for average productivity at 2.94 tonnes per hectare, down from 3.12 tonnes per hectare in last year's record season. AgRural has one of the lowest estimate among local analysts for the soy crop.


Malaysia's palm oil stocks declined by 1.52% to 2.068m tonnes in November from 2.1m tonnes the previous month. Malaysian Palm Oil Board (MPOB) said month-on-month, crude palm oil (CPO) stocks in November fell by 3.3% to 1.23m tonnes while processed palm oil went up by 1.21% to 841,698 tonnes. The MPOB said the CPO output in September slipped by 14.76% mom to 1.63m tonnes from 1.91m tonnes in October. (Starbiz)