Thursday, January 5, 2012

20120105 1813 FCPO EOD Daily Chart Study.

FCPO closed : 3190, changed : -35 point, volume : lower.
Bollinger band reading : pullback correction upside biased.
MACD Histrogram : turned downward, buyer taking profit.
Support : 3200, 3150, 3100, 3070, 3050 level.
Resistance : 3200, 3250, 3270, 3300, 3350 level.
Comment :
FCPO closed recorded loss with decreasing volume traded. Soy oil price trading lower after overnight closed slightly lower while crude oil price trading lower after overnight gains.
Profit taking activities press FCPO price lower after recent rallies. News wise, Indonesia palm oil associate projected 6% rise in production for the year 2012.
Daily chart formed a small down bar candle with little upper shadow closed below upper Bollinger band level after market opened and dipped lower, edge upward into positive zone and swing downward towards the end to closed at the low of the day.
Technical reading revised to suggesting a pullback correction upside biased market development with possible pullback correction.
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.

20120105 1743 FKLI EOD Daily Chart Study.

FKLI closed : 1516, changed : +11 points, volume : lower.
Bollinger band reading : pullback correction upside biased.
MACD Histrogram : turned lower, buyer taking profit.
Support : 1515, 1505, 1500, 1494 level.
Resistance : 1530, 1540, 1550, 1565 level.
Comment :
FKLI closed rebounded higher after yesterday substantial losses with declined volume participation doing 1.5 point premium compare to cash market that closed higher. Overnight U.S. market closed registered minor gain and today Asia markets ended mixed while European markets trading lower.
Markets traded mixed to lower ahead of France bond sale.
Daily chart formed a small up doji bar candle closed below upper Bollinger band level after market opened and traded higher, moved side way range bound to closed off the high of the day.
Chart analysis remained suggesting a pullback correction upside 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 resistance or strength with quick cut loss and profit target.

20120105 1725 Regional Markets EOD Daily Chart Study.

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

20120105 1558 Global Market & Commodities Related News.

FOREX-Euro under pressure, French bond sale awaited
SYDNEY, Jan 5 (Reuters) - The euro hovered just above multi-year lows against the yen and Australian dollar in Asia on Thursday as markets refocused on concerns about the euro zone debt crisis ahead of a French debt auction later in the session.
France plans to raise up to 8 billion euros in long-term debt a day after a subdued German bond auction. Berlin attracted only slightly better demand than was seem at a disastrous sale last year.

Shares, euro dip; French bond auction eyed
TOKYO, Jan 5 (Reuters) - Asian shares and the euro eased as concerns about the ability of euro zone countries to refinance their huge public debt dampened investor risk appetite ahead of a French bond auction later in the day.
"Euro zone debt worries persist and the euro is basically on a declining trend, while undergoing short-term swings depending on the degree of risks," said Tomoko Fujii, FX strategist at Bank of America Merrill Lynch in Tokyo.

Wheat falls for 2nd day on risk aversion; soy steady
SINGAPORE, Jan 5 (Reuters) - Chicago wheat slid for a second straight session weighed down by Europe's debt woes and the improved condition of the U.S. winter crop.
"It is Argentine weather playing out and this could remain as the main fundamental factor for price direction," said Lynette Tan, analyst with Phillip Futures in Singapore. "We are more bearish on wheat because of the poor fundamentals."

La Nina, low stocks trigger corn, soy volatility
OXFORD, England, Jan 4 (Reuters) - Global corn and soybean stocks remain low, leaving both commodities vulnerable to the threat posed by the La Nina weather phenomenon to production in Argentina and southern Brazil, U.S. Department of Agriculture chief economist Joseph Glauber said on Wednesday.
"Stocks levels for both those commodities are still quite low. There is a lot of volatility because of that and I think that the markets are reflecting that uncertainty right now," he told Reuters in an interview.

Monsanto sees drop in 2012 US cotton planting
ORLANDO, Jan 4 (Reuters) - - American cotton plantings in 2012 are seen falling 15 percent to around 12.5 million acres although the final figure will depend a great deal on prices of cotton and rival grains, as well as the vagaries of weather, a top official of lifesciences firm Monsanto  said.
"Cotton acres are going to be down," David Rhylander, the marketing lead for Monsanto's wholly owned cotton seed firm Deltapine, told Reuters in an interview late on Tuesday at the start of the annual Beltwide cotton conference here.

Malaysia's December palm oil stocks seen at 5-month low
KUALA LUMPUR, Jan 4 (Reuters) - Malaysia's palm oil stocks likely fell to a five-month low in December as a fall in production outpaced a drop in exports, a Reuters survey of seven plantation firms showed on Wednesday.
Stocks in the world's No.2 producer of the tropical oil probably dropped 5.7 percent to 1.95 million tonnes from 2.01 million tonnes in November as heavy rains disrupted harvests in parts of Malaysia.

India's 2011/12 edible oil imports seen up 6.3 pct
MUMBAI, Jan 4 (Reuters) - India's edible oil imports in the year ending October 2012 are likely to rise by 6.3 percent to 8.9 million tonnes and all the additional imports will be refined palm oil after Indonesia changed export taxes, a senior Indian industry official said.
Indonesia altered duties to make its refined palm oils more attractive than crude palm oil (CPO) from October 2011, prompting warnings from refiners in India, the world's top cooking oil buyer, it would be a "death blow."

Indonesia targets zero rice imports in 2012 -Bulog
JAKARTA, Jan 5 (Reuters) - Indonesia will not import rice in 2012 and instead maintain high stock levels by buying 4 million tonnes of the staple grain from domestic sellers, state procurement agency Bulog said.
Southeast Asia's biggest economy and the world's third-largest rice grower, issued permits to import 1.9 million tonnes of rice last year, from Vietnam, Thailand and India.

Vietnam sees coffee, rice exports down in 2012, oil up -report
HANOI, Jan 5 (Reuters) - Vietnam plans to export 1.2 million tonnes, or 20 million bags, of coffee this year, down 4 percent from the amount shipped in 2011 but above a previous forecast of 1.1 million tonnes, a state-run newspaper reported on Thursday.
Annual rice exports were seen reaching 7 million tonnes this year, after Vietnam exported a record 7.1 million tonnes in 2011, according to the Cong Thuong (Industry and Trade) newspaper which cited annual targets from the Industry and Trade Ministry.

Morocco grain strong despite planting delay-attache
Jan 4 - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Morocco:      
"The 2011/12 grain planting season in Morocco had a late start, with the first significant rainfalls arriving the week of October 24. Despite the delay of planting, agricultural experts remain hopeful for a good grain harvest. The official estimates for the 2010/2011 grain production were revised slightly down, with soft wheat production at 4.17 million tonnes, durum wheat at 1.85 million tonnes and barley at 2.34 million tonnes.

Ghana cocoa purchases up
ACCRA, Jan 4 (Reuters) - Ghana's official cocoa purchases are running 9 percent over last year, according to figures from state regulator Cocobod, but recent transport delays have triggered congestion at the West African nation's warehouses.
Purchases reached 518,531 tonnes by Dec. 22 since the start of the season on Oct. 14 in the world's No. 2 grower, according to Cocobod data seen by Reuters on Wednesday, with some 37,019 tonnes registered in the most recent week.

China, demand, macro issues to drive cotton market
ORLANDO, Jan 4 (Reuters) - - China's cotton imports, world consumption and the gyrations of the global economy will be the prime factors driving cotton market prices in 2012, a senior official said on Wednesday.
Mike Quinn, the president and chief executive of the Carolinas Cotton Growers Cooperative, said at the annual Beltwide Cotton conference a number of factors will influence price direction in cotton futures on the ICE Futures U.S. exchange.

Cameroon cocoa exports reach 106,347 T by end-Nov
YAOUNDE, Jan 4 (Reuters) - Cameroon exported 41,410 tonnes of cocoa beans in the month of November 2011, bringing the total for the season so far to 106,347 tonnes, according to statistics from the National Cocoa and Coffee Board (NCCB) released on Wednesday.
That is a slight drop from 109,045 tonnes exported by the same time last season.

Brent oil falls near $113 as euro zone jitters overshadow Iran
SINGAPORE, Jan 5 (Reuters) - Brent crude fell near $113 a barrel as renewed jitters over the euro zone crisis overshadowed fears of Iranian supply disruption after the European Union agreed to cut off oil imports from the No. 2 OPEC producer.
"I don't think there's any light at the end of the tunnel yet," Ryoma Furumi, a commodity sales manager at Newedge Japan, adding that the euro zone crisis could drag on for another year.

London copper inches up as euro zone adds caution to market
KUALA LUMPUR, Jan 5 (Reuters) - London copper inched up after its biggest decline in two weeks though worries over the euro zone's funding ability limited gains in early Asian trading.
The most-traded March copper contract on the Shanghai Futures Exchange  lost 0.48 percent to 55,520 yuan ($8,800) a tonne.

Lynas awaits Malaysia OK for rare earths plant
SYDNEY, Jan 5 (Reuters) - Australia's Lynas Corp  said on Thursday it was awaiting a Jan 30 decision by the Malaysian Atomic Energy Licensing Board over an application to begin commissioning a rare earths processing plant targeted by environmental protesters in Malaysia.
Lynas is one of a handful of rare earths companies looking to break China's grip on the global supply of rare earths, a range of 17 elements used to make high-tech electronics, magnets and batteries.

Iron ore fall raises doubts on Australia mine tax plan
SYDNEY, Jan 4 (Reuters) - Australia's politically charged mining profits tax could raise less of the initial A$11 billion Prime Minister Julia Gillard is promising if iron ore prices return to November levels, accountants BDO warned in a senate submission.
Mega-miners Xstrata , BHP Billiton   and Rio Tinto  , last year agreed with Gillard to pay the Minerals Resource Rent Tax only if the tax was cut to 30 percent from 40 percent and limited to profits from iron ore and coal mining.

Iron ore prices steady but China outlook gloomy
BEIJING, Jan 5 (Reuters) - Spot iron ore prices in China, the world's biggest market, were steady on Thursday as activity began to pick up following the New Year break, but traders said the outlook remained gloomy.
In the absence of new policies from Beijing to stimulate steel demand, mills will not buy until they really have to, said a Shanghai-based trader.

Gold steady; eyes Iran, French bond sales
SINGAPORE, Jan 5 (Reuters) - Gold traded steady, near a 2-1/2-week high hit in the previous session, as investors awaited a French bond auction later in the day to gauge the scope of the euro zone debt crisis and watched developments on Iran.
"If we don't have any shock out of Iran or any surprise on data, gold is likely to stay in consolidation with a near-term bottom at $1,550," said Hou Xinqiang, an analyst at Jinrui Futures in the southern Chinese city of Shenzhen

METALS-London copper rises as China's demand counters euro zone worries
KUALA LUMPUR, Jan 5 (Reuters) - London copper rose on Thursday, rebounding from its biggest decline in two weeks, as demand from China boosted prices although worries over the euro zone's funding ability limited gains.
Three-month copper on the London Metal Exchange  climbed 1 percent to $7,616 a tonne by 0514 GMT. Prices fell 3.2 percent on Wednesday, the biggest daily drop since Dec. 14.

PRECIOUS-Gold steady; eyes Iran, French bond sales
SINGAPORE, Jan 5 (Reuters) - Gold traded steady on Thursday, near a 2-1/2-week high hit in the previous session, as investors awaited a French bond auction later in the day to gauge the scope of the euro zone debt crisis and watched developments on Iran.
Gold rose with oil in the previous session, breaking its lockstep with the euro, after the European Union reached a preliminary agreement to ban imports of Iranian oil.

20120105 1213 Local & Global Economic Related News.

Overseas investors bought Malaysian stocks for a third straight month in Dec 2011, the longest monthly streak since Jul 2011, as the benchmark index posted its largest quarterly gain in more than a year. Foreign funds purchased a net RM800m (US$255m) of Malaysian shares last month (RM700m in Nov and RM1.5bn in Oct), according to data on the Kuala Lumpur stock exchange’s website. (BT)

European banks deposited €453.18 billion, breaking the all-time record set last week of €452.03 billion, at the European Central Bank’s overnight deposit facility paying 0.25% interest on 3 Jan in fear of counterparty failure to repay the loans, while short-term emergency borrowing from the central bank remained elevated. (Wall Street Journal)

In a local government debt audit covering the year 2010, China found some Rmb530.9bn in misused funds which were illegally diverted to property and the capital markets as well as “fake” investments, according to the National Audit Office. The financing vehicles also offered loans secured with improper collateral. (AFP)

The People’s Bank of China is upgrading China’s National Advanced Payment System (Cnaps) to improve bank’s efficiency in clearing yuan funds across its borders, an effort that will further promote the global use of the yuan. (Wall Street Journal)

India’s economy will potentially grow faster next fiscal year than in 2011/12 on account of an improved external environment and the government’s shift in policy focus to promoting growth from containing inflation, according to chief economic adviser Kaushik Basu who also opined that public finances will remain under pressure in 2012/13. (Reuters)

Average housing prices in 100 major cities in China were up 2.86% yoy in Dec (4.06% in Nov). House prices fell 0.3% mom to Rmb8,809/sqm in Dec, down from Rmb8,832 in Nov. (WSJ)

The HSBC Market Business Activity Index for India rose to 54.2 in Dec from 53.2 in Nov, staying above the 50 mark that separates growth from contraction. (Reuters)

Singapore’s private residential property index rose from 205.7 pts in 3Q to 206.2 points in 4Q, an increase of 0.2% qoq (1.3% in 3Q), according to flash estimates by the Urban Redevelopment Authority. (ST)

Price rises of resale Housing Board (HDB) flats in Singapore moderated in 4Q11, rising 1.7% qoq (+3.8% in 3Q). (ST)

Singapore’s purchasing managers index rose to 49.5 from 48.7 in Nov. Economists had expected an index reading of 48.8. (Bloomberg)

Singapore’s electronics sector index declined to 49.7 in Dec from 50.9 in Nov, lower than the 51.2 that the market had forecast. (Bloomberg, Channel News Asia)

Indonesia’s Danareksa consumer confidence index rose 0.2 pt to 91.6 in Dec marking the highest result in six months. (Jakarta Globe)


Thailand: Inflation slows to 9-month low as flood damage eases
Thailand’s inflation rate eased in December to a nine-month low on declining food costs as the nation recovers from the worst floods in almost 70 years. An index of consumer prices climbed 3.53% from a year earlier, the Ministry of Commerce said yesterday. The Thai economy may have contracted 5% last quarter from a year earlier, according to the finance ministry, after the flooding and a faltering global recovery led to a slump in industrial output. The Bank of Thailand cut interest rates for the first time in more than two years in November, joining Asian neighbors from Indonesia to China in seeking to support growth. (Bloomberg)

India: Services expand at fastest pace in five months, PMI shows
India’s services industry expanded in December at the fastest pace in five months, signaling price pressures may crimp scope to cut interest rates. The Purchasing Managers’ Index rose to 54.2 from 53.2 in November, HSBC Holdings Plc and Markit Economics said yesterday. Readings above 50 indicate expansion. The data add to recent signs that some industries in India and China are weathering the impact of Europe’s fiscal crisis, after a Chinese non-manufacturing index rose in December. The Reserve Bank of India refrained from raising interest rates for the first time in eight meetings last month, seeking to protect the economy as its expansion moderates. (Bloomberg)

China: December home prices fall for 4th month
China’s home prices fell for a fourth month in December after the government reiterated plans to maintain property curbs, according to SouFun Holdings Ltd. Residential prices dropped 0.25% last month from November, said SouFun, the nation’s biggest real estate website owner. Prices slid in 60 out of 100 cities tracked by the company, including all of the country’s 10 biggest cities such as Shanghai and Beijing, it said yesterday. The government said last month at an annual economic planning meeting that it won’t back away from real-estate industry curbs this year that are damping home sales and pulling down prices. The nation’s financial centre of Shanghai and some other Chinese cities have also said they will continue to impose the home purchase restrictions this year. (Bloomberg)

EU: Inflation slows, giving ECB room to cut rates
Euro-region inflation slowed for the first time in five months in December, giving the European Central Bank room to lower borrowing costs further as the economy edges toward a recession. The inflation rate in the 17-nation euro area fell to 2.8% from 3% in November, the European Union’s statistics office said in an initial estimate yesterday. Euro-area services and manufacturing output contracted less than initially estimated last month and French consumer spending unexpectedly declined in November from October, separate reports showed. Europe’s economy is showing increasing signs of a slowdown as governments struggle to contain the region’s debt crisis, adding pressure on the ECB to lower the benchmark interest rate from the current 1%, which matches a record low. (Bloomberg)

UK: Mortgage approvals were little changed in November
UK mortgage approvals were little changed in November as weakening consumer confidence and economic uncertainty restrained demand for property. Lenders granted 52,854 loans to buy homes compared with a revised 52,786 the previous month, the Bank of England said yesterday. While approvals have risen from about 47,300 a year ago and are at the highest in two years, the November reading is still less than half the monthly average of 103,000 in the decade to 2007, before the financial crisis struck. Nationwide Building Society said last week that house prices may decline this year as the fallout from the euro-area sovereign debt crisis pushes up unemployment and undermines household sentiment. (Bloomberg)

US orders for manufactured goods increased 1.8% mom in Nov (-0.2% in Oct) Economists had expected orders to increase 1.7% in Nov. Orders for non-defense capital goods excluding aircraft fell 1.2% after declining 0.9% in Oct. (Reuters)

Applications for US home mortgages fell 4.1% in the week ended 30 Dec, weighed down by a 9.6% drop in purchase loan requests and a 2.5% decline in refinancing requests, data from the Mortgage Bankers Association showed. (Reuters)

20120105 1213 Malaysia Corporate Related News.

Perisai Petroleum announced that it had completed the US$70m Garuda  acquisition on 27 Dec 11. (BMSB)

New York Governor Andrew Cuomo called for replacing the Jacob Javits  Convention Center in Manhattan with a 3.8m sft complex in Queens to be built  by Genting Bhd. Cuomo said the center at the Aqueduct Racetrack would be  the largest in the U.S., eclipsing Chicago’s McCormick Place. The $4bn “private  investment” would include as many as 3,000 hotel rooms. (Bloomberg)

Malaysia Airports (MAHB) failed to inform government officials that the cost  of KLIA2 would almost double to RM3.9bn as a result of shifting the new  terminal from its original site to the current location, Tony Pua said. The DAP  publicity chief pointed out that MAHB withheld this  crucial information at a  meeting on April 15, 2008, when the airport operator first mooted the current  KLIA West site.  This was despite the original KLIA Master Plan 1992 stating that soil  conditions to the west had “poor bearing qualities and is not suitable for  airport construction without undertaking significant engineering  measures”. Pua estimated that earthworks undertaken to mitigate poor soil  conditions at the new site accounted for about RM1.2bn of the RM1.9bn  in additional cost so far incurred by KLIA2. He had also pointed out the move to KLIA West meant a third runway  had to be built for RM270m, as well as a second control tower for  RM500m.  Pua urged Transport Minister  Datuk Seri Kong Cho Ha to take  action against the ministry officials involved in discussions on KLIA2.  He added that action must also be taken against the top management of  MAHB for being “economical with the truth”. (Malaysian Insider)

The government is prepared to listen to any proposal from any Felda interest  group to enhance the listing process of Felda Global Ventures Holdings  (FGVH) on Bursa Malaysia, Deputy Minister in the Prime Minister's  Department Datuk Ahmad Maslan said. He said that interest groups like  Gabungan Peneroka Generasi Wawasan Felda Kebangsaan (Gempak) will be  invited for discussions in the next few weeks. "Groups with an interest in Felda  can submit their proposals as soon as possible and I will forward them officially  in one or two weeks.  "Official discussions with these interest groups are held so that a proposal paper can be submitted to the team preparing the listing  document for approval by the Securities Commission," he said. Ahmad  said the consultations should be completed by the end of Jan and the  listing document is expected to be ready in a month or two.  FGVH is expected to be listed on the main board of Bursa Malaysia in  April this year. (Bernama)

The High Court here granted an injunction sought by four members of  Koperasi Permodalan Felda Malaysia (KPF) to stop its extraordinary  general meeting tomorrow that will decide the public listing of Felda Global  Ventures Holding (FGVH) on the Bursa Malaysia.  The injunction was filed in Temerloh on Dece 23 by Rosdi Ismail, Alias  Ibrahim, Abdullah Mohamad and Rakiah Sulong, seeking to block  KPF’s meeting as well as its decision to dispose of its assets in Felda  Holdings. The applicants were represented by counsel Mohamad Harris  Abdullah, reported Harakahdaily. (Malaysian Insider)

DRB-Hicom Bhd unit HICOM Holdings Bhd has completed its acquisition of  the entire issued and paid-up share capital of HICOM Automotive  Manufacturers (M) Sdn Bhd (HAMM), comprising 71m ordinary shares of RM1  each from Automotive Corporation (M) Sdn Bhd (ACM) for RM1. The internal  reorganisation was part of the group's intention to streamline and realign the  businesses to achieve greater operational efficiency, DRB-HICOM said.  (Starbiz)

The year 2012 would be a year when revenues will be harder to earn, and one  that even largest banking groups would find thoroughly challenging,  Datuk  Seri Nazir Razak of CIMB Group said. Even with its envied deal pipeline,  dominance and reach, Nazir told employees that CIMB performed below par in  2011. While CIMB beat rivals on several fronts and would probably meet or  perhaps exceed latest analysts’ earnings projections, Nazir said year  2011 will still be one of CIMB’s worst years in terms of total shareholder  returns. (Financial Daily)

The Securities Commission has approved the proposed warrants exchange  exercise between  Malaysia Airlines (MAS) and  AirAsia. The approval is  subject to the company complying with the relevant requirements pertaining to  the implementation of the proposal as stipulated under the SC’s equity  guidelines. (Bernama) Malaysia Airlines (MAS) must pay a customary penalty to Sabah following  the carrier's recent abrupt move to suspend flights from the state capital to  various international destinations, says Sabah Bumiputera Chamber of  Commerce. Its treasurer, Roselan Johar Mohamed, described the recent  decision by the national carrier as "very sad and a complete departure from the  role model they were suppose to assume".  "If it is deemed necessary to reduce unprofitable routes within East  Malaysia, then MAS must pay customary penalty or "sogit to Sabah and  Sarawak...after all we are the affected ones," he said. (Bernama)

Malaysia Airlines’ (MAS) short-haul premium airline is set to be launched by  the first half of this year. The six B737-800 planes (which were previously used  by Firefly) will be used by the new airline. The new airline will likely tap into  the pool of crew at MAS and Firefly, while some recruitment may be done from  the open market. The six jets which no longer sport Firefly's livery, but that of  Malaysia Airlines' are likely to be painted and give a fresh look, in line with the  new airline's branding and logo. (BT)

The  Securities Commission  has reprimanded Mulpha International's board of directors for failure to ensure that information in a 2010 prospectus  was disclosed in a "full and true manner". This administrative action was taken  on Jan 3 and the details posted on the SC website yesterday. (Starbiz)

Volkswagen Group Malaysia (VGM) has officially opened its one-stop  centre, which is expected to sell about 75 vehicles monthly and help serves more  than 300 existing owners in the east coast. The 3S centre in Jalan Beserahwhich offers sales, service and spare parts under one roof  - is owned and  operated by VGM's authorised dealer Okuan Otomobil Sdn Bhd. Okuan  Otomobil executive director Peter Yap said the company was confident to  achieve the monthly sales target after it had successfully sold more than 160  Volkswagen vehicles since July last year.  VGM is the subsidiary of Volkswagen AG of Germany and has in 2009  appointed DRB-Hicom Auto Solutions Sdn Bhd as its Malaysian  importer.  The company has also signed an agreement with  DRB-Hicom Berhad for the local assembly of Volkswagen vehicles at the  latter's facility in Pekan, with the first batch of vehicles are expected to  reach the showrooms nationwide this year. (BT)

Integrated poultry producer  DBE Gurney Resources is looking to turn  around convincingly in its FY12, through the sale and leaseback of its factories  and by increasing its plant utilitisation from a single shift to three shifts by the  start of 2Q12. DBE, which was back in the black as of 3Q11, is currently running  at a single shift of 20 hours, where it produces 3,000 birds per hour. A 3-shift  utilisation would mean production of 180,000 birds.“We are in a position where  demand exceeds supply. We have a ready market for our chickens. One of our  offtakers, KFC Holdings (M) Bhd has been asking for more chickens, but we  don't have the working capital to increase our production. “We are also getting many enquiries from the Middle Eastern countries,  like Saudi Arabia and Turkey.“We recently sent five containers of  chickens to Oman. These countries like Malaysia as we have a niche in  halal status,” says DBE Gurney group MD Alex Ding Seng Huat. Apart  from KFC, DBE supplies to Tesco and some 30 hotels in Malaysia.  (Starbiz)

Xidelang Holdings Ltd’s controlling stakeholder and MD Mark Ding Peng  Peng is a disappointed man. His company’s profit has been soaring over the past  three financial years only for the shares to keep heading south. “It is a bit  frustrating ... the investment community tells me that this has a lot to do with  perception of being a mainland China company,” Ding told BT in an interview.  he also said that 2012 will be a critical year for Xidelang in Malaysia. “We will try to increase investor relation activities here in Malaysia, and  make a decision on what we want to do with the company, going  forward,” said Ding. He admits that awareness on Xidelang has been  poor with most investors still identifying the company as a shoemaker,  when its apparels are the company’s mainstay.(BT)

Malaysia’s largest container terminal  Port of Tanjung Pelepas (PTP)  recorded a 15% rise in container volume to 7.5m TEUs of container in 2011.  PTP’s growth in 2011 had outperformed global volume growth of 7%. (Financial  Daily)

AmFirst REIT is looking to grow its asset base by 20% over the next 15  months and may do this by acquiring Malaysian shopping malls assets managed  by its Singapore-listed parent, ARA Asset. ARA Asset’s portfolio includes the 1  Mont’ Kiara Mall, AEON Bandaraya Melaka, Klang Parade, Seremban Parade  and Ipoh Parade malls. Already, AmFirst REIT is eyeing commercial properties  such as Grade A office buildings in Penang and Malacca. (Financial Daily)

Mamee-Double Decker will be delisted from Bursa Malaysia on Monday, 9  Jan 2012. (BMSB)


JCorp chairman/Johor MB clarifies KFC-QSR privatization issues
Johor Corp (JCorp) chairman Datuk Abdul Ghani has quashed allegations that the move to privatize KFC Holdings and QSR Brands was an act of selling out to foreigners or harming Bumiputera interests. In an interview, Abdul Ghani said JCorp was privatizing QSR and KFC as part of an internal reshuffle to make the corporate structure of the JCorp Group more efficient. The privatization will keep the companies within JCorp directly, while at the same time increasing its holdings in QSR and KFC from 33% and 17% respectively, to a majority of 51%. “The JCorp group has always maintained that it intends to keep the two businesses within the group, believing in their long-term value,” he said. (Malaysian Reserve)

BHIC attracts interest on privatization talk
Market talk concerning the possible privatization of Boustead Heavy Industries Corp (BHIC) has resulted in an increase in the stock’s price over the past couple of weeks. According to reports, while BHIC’s parent Boustead Holdings denied talk that it was planning to privatize the former, it then emerged that Lembaga Tabung Angkatan Tentera (LTAT) could be the vehicle to be used. LATA’s chief executive Tan Sri Lodin Wok Kamaruddin did not dismiss the possibility of the Armed Forces pension fund taking BHIC private. However, he added that the matter would have to be collectively deliberated by LTAT’s board of directors. (Financial Daily)

JCY sees surge in earnings, approves RM300m CAPEX
Hard-disk drive (HDD) component maker JCY International Bhd is likely to record a 19-fold increase in net profit y-o-y for the financial quarter 31 Dec 2011, due to an increase in average selling prices caused by component shortages arising from the flood in Thailand. To cater to the increase in the component demands from its major customers, the board of directors has approved a capital expenditure budget of about RM300m over the next 24 months, for expansion of its facilities in Malaysia, Thailand and China. Barring any unforeseen factors, JCY also expects to increase its global market share of the HDD mechanical component industry over the next two years. (BT)

Nadzmi bids for Proton
Proton Holdings chairman Datuk Mohd Nadzmi Mohd Salleh has confirmed that he has put in a bid for state fund Khazanah Nasional's 42.7% stake in the national carmaker, making him the only person to publicly indicate his interest in taking over Proton. Speaking to the media for the first time after rumours started to spread that Proton is up for sale, Nadzmi told StarBiz that privatisation was the way to go for Proton, which would enable him to restructure the whole group to turn it around. “I know the business well, and Proton is close to my heart. There is a potential in Proton and that is why I dare to make a bid, and the offer runs into billions,” he said. However, he declined to reveal the offer that he had put in for Proton due to the sensitivity of the deal, but he deemed an offer for the net tangible asset price of Proton to be too high as Proton is not an easy project, adding that some foreign banks were already in talks for the financing part if the stake were to be sold to him. (StarBiz)

Bumi Armada acquires 50% stake
Bumi Armada Bhd had acquired a 49.998% or 24,999 shares stake in India firm SP Armada Oil Exploration Pte Ltd. SP Armada, anoil & gas company will now become a “jointly-controlled” entity of Bumi Armada. The remaining 50.002% stake of SP Armada is held by India based Shapoorji Pallonji & Co Ltd. “The acquisition is to facilitate the future expansion plan and operations of Bumi Armada,” it said in an announcement to Bursa Malaysia. (StarBiz)

20120105 1210 Renewable Energy Related News.

VESTAS CUTS GUIDANCE, BLAMES COST OVERRUNS
COPENHAGEN, Jan 3 (Reuters) - Danish wind turbine maker Vestas  cut its guidance for 2011 earnings and revenue in a surprise trading update on Tuesday  , saying costs  of developing a new turbine  had  overshot expectations and some revenue had been delayed.
The world's biggest wind turbine maker, which struggled in 2011 as the global economic crisis dented investment in energy infrastructure, said it would defer some revenue and earnings into 2012 and book higher-than-expected costs.

SPAIN HYDRO RESERVES EASE, IRRIGATION LEVELS UP
MADRID, Jan 3 (Reuters) - Spanish hydropower reserves fell last week, the latest official data showed on Tuesday, which is potentially bullish for power prices and will tend to drive demand for gas in the world's eight-biggest natural gas importer.
Water levels rose in reservoirs set aside for irrigation, which will help to ease grain import needs of at least 10 million tonnes a year, which lures interest from producing countries around the world.

EUROPE POWER-PROMPT FIRMER AS WIND SUPPLY DROPS
FRANKFURT, Dec 29(Reuters) - Most German and French prompt power prices firmed on Thursday ahead of a forecast decline in German wind power supply which outweighed low demand.
Germany's Friday baseload contract  gained 1.30 euros to 38.90 euros ($5,000) a megawatt hour.

UK 2011 RENEWABLES INVESTMENT BY FIRMS $3.9 BLN-DECC
LONDON, Dec 29 (Reuters) - Companies have announced plans to invest almost 2.5 billion pounds ($3.87 billion) in renewable energy projects in the UK this year, the UK's Department for Energy and Climate Change (DECC) said on Thursday.
The plans could potentially create almost 12,000 jobs, DECC said, and compare with estimates from various consultants of around 2.1 billion pounds for the previous year.

ROMANIAN HIDROELECTRICA CANCELS 4 POWER CONTRACTS
BUCHAREST, Dec 29 (Reuters) - Romanian state-owned utility Hidroelectrica cancelled four contracts under which it sells power below market prices, Economy Minister Ion Ariton said on Thursday, heralding an end for other similar deals.
The contracts - including with a local unit of steelmaker ArcelorMittal  - are under investigation by the European Commission and contested in court by minority shareholder Fondul Proprietatea.

CHINA'S ON-GRID WIND POWER CAPACITY TOPS 45 GW -REPORT
BEIJING, Dec 29 (Reuters) - Wind power generating capacity connected to China's grid networks increased by more than 14 gigawatts, or about 45 percent, from a year earlier to above 45 GW at the end of 2011, state media reported on Thursday.
The newly-added capacity was slightly higher than the additions in 2010, even though the growth rate was a bit lower, the state broadcaster said in a report on its website (www.cnr.cn) that cited data from National Wind Power Information Management Centre.

WIND POWER MARKET FACES TOUGH 2013 -CONSULTANTS
COPENHAGEN, Dec 28 (Reuters) - The wind turbine market faces a difficult 2013 even if a U.S. incentive scheme known as the Production Tax Credit (PTC) is extended beyond its end-2012 expiry date, Denmark-based MAKE Consulting said in a research note.
Uncertainty about whether the tax credit will be extended or replaced with something else has led to a rushed 2011 and 2012 wind farm building cycle, while new development plans for 2013 have plummeted, MAKE said.

20120105 1209 Biofuel Related News

BRAZIL, SHORT OF BIOFUEL, CAN'T OPEN SPIGOT TO US
SAO PAULO, Dec 29 (Reuters) - For three decades, the U.S. government sought to protect American corn farmers and ethanol makers from a feared flood of Brazilian imports by imposing a tariff that had the South American country crying foul.
But as the contentious tax finally expires at year-end, American farmers' fears of being swamped by sugar-based tropical biofuel seem unfounded. With Brazil's ethanol industry struggling to meet booming local demand, it's U.S. producers instead who are shipping millions of gallons to the south.

U.S. ETHANOL OUTPUT JUMPS 2 PCT TO RECORD HIGH
Dec 29 (Reuters) - U.S. ethanol production hit a record high last week, jumping 2 percent over the previous week's tally, the Energy Information Administration reported on Thursday.  
U.S. ethanol production totaled 962,000 barrels per day in the seven days to Dec. 23, up 19,000 barrels per day from the previous week. The next highest production level was 954,000 barrels per day for the week ending Dec. 2.

20120105 1208 Global Market Related News.

Asian Stocks Fall as France Debt Sale Raises European Debt-Crisis Concerns (Source: Bloomberg)
Asian stocks (MXAP) retreated, snapping a two-day rally, after Australia’s services industry shrank and the euro weakened ahead of France’s plans to sells as much as 8 billion euros ($10.4 billion) of debt today. Sony Corp. (6759), a Japanese electronics maker that gets 21 percent of its sales from Europe, fell 1.1 percent in Tokyo as a weaker euro cuts the earnings outlook for exporters. Wesfarmers Ltd. led declines among Australian retailers after a report showed the nation’s services industry contracted in December as consumer spending weakened. BHP Billiton Ltd., the world’s largest mining company, slipped 1.5 percent in Sydney as copper futures dropped. “Problems sparked by the European debt crisis are reigniting and people in the market have reaffirmed that the situation has not changed,” said Mitsushige Akino, who oversees about $600 million in Tokyo at Ichiyoshi Investment Management Co. “That’s weakening the euro and hurting exporters with a heavy reliance on Europe.”

U.S. Stocks Erase Early Loss Amid Improving Sales at Retailers, Carmakers (Source: Bloomberg)
U.S. stocks erased an early loss to finish little changed, leaving the Dow Jones Industrial Average at the highest level since July, as improving sales at retailers and carmakers helped offset lower-than-forecast factory orders. Ford Motor Co. (F) rose 1.5 percent after carmakers reported December sales that beat analysts’ estimates, capping the industry’s best year since 2008. Home Depot Inc. (HD), Lowe’s Cos. and Starbucks Corp. advanced at least 1.4 percent after the International Council of Shopping Centers increased its estimate for December retail-sales growth. Yahoo! Inc. (YHOO) lost 3.1 percent after appointing Scott Thompson chief executive officer. The Standard & Poor’s 500 Index rose less than 0.1 percent to 1,277.30 at 4 p.m. New York time, after dropping as much as 0.7 percent earlier. The benchmark index is at its highest level since Oct. 28. The Dow added 21.04 points, or 0.2 percent, to 12,418.42 today.

Stocks Retreat in Europe Amid Debt Concern; Vestas, UniCredit Lead Decline (Source: Bloomberg)
European stocks (SXXP) retreated from a five-month high as UniCredit (UCG) SpA’s rights offer boosted concern that banks will need to raise more capital to weather the region’s debt crisis. UniCredit, Italy’s largest lender, slid the most in more than two decades after setting a 43 percent price discount for the rights offer. Vestas Wind Systems A/S (VWS), the world’s biggest wind-turbine maker, slumped 19 percent after cutting its revenue and profit forecasts. Next Plc (NXT) dropped 3.1 percent as the U.K.’s second-largest clothing retailer reported sales that missed analyst estimates. The Stoxx Europe 600 Index (SXXP) fell 0.6 percent to 249.62 at the close in London, snapping a four-day rally. The measure rose to the highest level since Aug. 3 yesterday after a report showed that U.S. manufacturing expanded in December at the fastest pace in six months. The gauge lost 11 percent last year.

Shares, euro dip on Europe;French bond auction eyed
TOKYO, Jan 5 (Reuters) - Asian shares and the euro eased on Thursday as concerns about the ability of euro zone countries to refinance their huge public debt dampened investor risk appetite ahead of a French bond auction later in the day.
"Europe still lacks a credible mechanism to rekindle growth, and without growth the crisis can only intensify," said Russell Jones, analyst at Westpac Bank.

Fed Primary-Dealer Survey Predicts Rate Increase in Second Quarter of 2014 (Source: Bloomberg)
The Federal Reserve Bank of New York’s survey of primary dealers conducted before policy makers’ Dec. 13 meeting showed the firms expected the Fed to raise its benchmark interest rate during the second quarter of 2014. Respondents saw a 45 percent chance the first rate increase would occur in the second quarter of 2014 or later, according to the results posted today on the New York Fed’s website. The median among the predictions for the timing of the first increase was the second quarter of 2014, the bank said in a statement. The Fed has kept its benchmark interest rate near zero since December 2008. The December survey asked primary dealers the probability that central bankers would make changes to their public communications within the next year. Fed officials decided at the last meeting of the Federal Open Market Committee to start publishing their own forecasts for the central bank’s key interest rate, according to minutes of the gathering released yesterday.

Inventory Restocking to Propel U.S. Manufacturing in Early 2012: Economy (Source: Bloomberg)
The need to rebuild depleted inventories may supersede spending on business equipment as the catalyst propelling gains in U.S. manufacturing in early 2012. Orders (CGNOXAI%) for non-defense capital goods excluding aircraft, a measure of future corporate investment, dropped 1.2 percent in November, the biggest decline in 10 months, according to Commerce Department data today. A report yesterday showed a gauge of stockpiles at factories’ customers slumped in December to a seven-month low. Bookings by retailers like Macy’s Inc. (M) and Target Corp. may increase after holiday sales climbed more than forecast, putting to rest concern that the world’s largest economy was tipping back into a recession. At the same time, the expiration of a 100 percent depreciation allowance for equipment purchased in 2011 probably pulled some sales into last year.

Revealing Interest Rate Forecasts Advances Bernanke Transparency Campaign (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke is betting that announcing Federal Reserve officials’ own forecasts for borrowing costs will make monetary policy more effective while also supporting the two-year expansion. A decision to reveal forecasts for the federal funds rate starting this month represents the biggest step toward openness since Bernanke took office in 2006 promising greater transparency, according to Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. and a former Fed board economist. The central bank didn’t even start announcing changes in interest rates until 1994. “This is a complete 180-degree shift from the old mysterious-institution approach,” said Ethan Harris, co-head of global economic research at Bank of America Merrill Lynch in New York. “There’s been a steady move toward opening up the central bank to outside scrutiny and trying to explain to the public the logic of what they’re doing.”

China’s Home Prices Slide Amid Speculation of Reserve Ratio Cut: Economy (Source: Bloomberg)
China’s home prices fell for a fourth month in December after the government reiterated plans to maintain property curbs, according to SouFun Holdings Ltd. (SFUN) Residential prices dropped 0.25 percent last month from November, said SouFun, the nation’s biggest real estate website owner. Prices slid in 60 out of 100 cities tracked by the company, including all of the country’s 10 biggest cities such as Shanghai and Beijing, it said in an e-mailed statement today. The government said last month at an annual economic planning meeting that it won’t back away from real-estate industry curbs this year that are damping home sales and pulling down prices. The nation’s financial center of Shanghai and some other Chinese cities have also said they will continue to impose the home purchase restrictions this year.

Slowing Inflation May Give ECB Room to Maneuver on Interest Rates: Economy (Source: Bloomberg)
Euro-region inflation (ECCPEMUY) slowed for the first time in five months in December, giving the European Central Bank room to lower borrowing costs further as the economy edges toward a recession. The inflation rate (ECCPEMUY) in the 17-nation euro area fell to 2.8 percent from 3 percent in November, the European Union’s statistics office in Luxembourg said in an initial estimate today. Euro-area services and manufacturing output contracted less than initially estimated last month and French consumer spending unexpectedly declined in November from October, separate reports showed. Europe’s economy (EUGNEMUQ) is showing increasing signs of a slowdown as governments struggle to contain the region’s debt crisis, adding pressure on the ECB to lower the benchmark interest rate from the current 1 percent, which matches a record low (EURR002W). Economists at IHS Global Insight and ABN Amro forecast the central bank will cut borrowing costs as low as 0.5 percent to fight a recession.

Euro-Area Manufacturing, Services Contract Less Than Initially Estimated (Source: Bloomberg)
Euro-area services and manufacturing output contracted less than initially estimated in December, led by Germany, the region’s largest economy, where output reached a four-month high. A euro-area composite index (ECPMICOU) based on a survey of purchasing managers in both industries rose to 48.3 from 47 in November, London-based Markit Economics said in an e-mailed report today. That’s above an initial estimate of 47.9 on Dec. 15. A reading below 50 indicates contraction. The German composite output gauge rose to 51.3 from 49.4. Europe’s economy is edging toward a recession as governments toughen budget cuts to contain the region’s debt crisis just as global demand for exports falters. The International Monetary Fund may cut its 2012 global growth forecast this month after lowering it to 4 percent in September, when it predicted “severe” repercussions if Europe fails to contain its crisis.

French Consumer Spending Declines on Unemployment, European Growth Outlook (Source: Bloomberg)
French consumer spending (FRSNMANM) slid in November as surging joblessness and concern about the European debt crisis prompted households to cut back. Spending fell 0.1 percent from October, when it rose a revised 0.1 percent, national statistics office Insee said today in an e-mailed statement. Spending fell 2.1 percent from the year-earlier period. Stagnant household demand reflects concern about earning prospects amid rising joblessness and mounting concern that the euro area is entering a recession. President Nicolas Sarkozy’s renewed effort to trim the budget deficit at a time when Europe’s debt crisis is hurting confidence may restrain spending growth in the months ahead, economists have said.

20120105 1208 Global Commodities Related News.

Raw Materials Seen Rebounding as Global Economy Skirts Slump: Commodities (Source: Bloomberg)
Commodities may rebound from their first retreat in three years as developing economies shore up global growth, driving demand higher at a time when raw-material producers are already struggling to keep up. Precious metals will advance 27 percent or more, industrial metals at least 17 percent and grains 5 percent, according to the median estimates in a Bloomberg survey of 143 analysts, traders and investors. Nine of the 15 commodities covered by a similar survey a year earlier reached their predicted highs in 2011, with another five no more than 4 percent away. The Standard & Poor’s GSCI Total Return Index of 24 raw materials rose 16 percent through April, before tumbling 15 percent on mounting concern that Europe’s debt crisis and slower Chinese growth would curb demand for commodities. A 6.1 percent expansion in developing economies this year will help sustain global growth at 4 percent, above the average (IGDCWRLD) over the past decade, the International Monetary Fund predicts.

Strong start to 2012 but Europe remains a worry
NEW YORK, Jan 3 (Reuters) - Commodities began 2012 with a bang as a key market benchmark posted its largest gain in three months on Tuesday, but the unresolved European crisis and fears of last year's volatility continuing made analysts wonder if it was too early to rejoice.
"Funds are now investing again, taking a bit more risk after   a poor year" in 2011, said Peter Fertig, analyst at Europe's Quantitative Commodity Research.

Corn (Source: CME)
US corn futures end flat, stabilizing after prices rallied to multi-week highs of late. Forecasts for rain to reach parched Argentina crops next week took the edge off prices, analysts say, so traders took profits after prices rose for the past 3 weeks. A firmer dollar and spillover weakness from slumping wheat futures attracted selling as well. However, selling was limited by lingering fears of irreversible yield losses in Argentina as private forecasts lower production prospects. CBOT March corn ended unchanged at $6.58 1/2 a bushel.

Wheat (Source: CME)
US wheat futures led a retreat in grain futures, as traders took profits on recent gains. Wheat continues to suffer from poor fundamental outlooks, as ample world supplies and heavy competition in global export markets paint a bearish picture for US wheat at current prices. Wheat also pressured by improved conditions for the next US crop. State crop reports released yesterday afternoon showed conditions overall improving in key states, with potential for strong winter wheat yields possible nationwide, analysts said. CBOT March wheat ended down 1% or 7c at $6.50/bushel; KCBT March wheat up 1 1/2c at $7.14; MGEX March wheat 5 1/4c lower at $8.39.

Rice (Source: CME)
US rice futures end slightly higher, stabilizing after recent swings in prices. Analysts say the market was consolidating after corrective price action in the past week. CBOT March rice added 1/2c, to finish at $14.65 per hundredweight.

Cropcast cuts Argentine corn, soy estimates
CHICAGO, Jan 3 (Reuters) - Cropcast, a weather information service widely followed by grain traders for its global crop outlooks, on Tuesday reduced its forecasts for Argentine corn and soybean production and said further cuts may be coming.
Cropcast lowered its estimate of the Argentine corn crop to 24.5 million tonnes, down 3 million tonnes from projections it gave last week, and soybeans by 1.6 million to 49.82 million as the leading global corn and soy producer suffers from drought.

US corn dips from 2-month peak; soy, wheat ease
SINGAPORE, Jan 4 (Reuters) - Chicago corn slid half a percent, falling from a near two-month top, while soy eased after a rally to its highest since end-October as increased selling by U.S. farmers pressured markets.
"It is generally a lower start across the grains and oilseeds markets, we are looking at a little bit of profit-taking after striking some resistance levels yesterday," said Luke Mathews, Commodities Strategist at Commonwealth Bank of Australia.

Ukraine exports 2 mln T of grain in Dec - analyst
KIEV, Jan 3 (Reuters) - Ukraine exported about 2.0 million tonnes of grain between Dec. 1 and 30, analyst ProAgro said on Tuesday.
The consultancy said in a report the volume included 1.56 million tonnes of maize, 413,000 tonnes of wheat and other cereals.

Argentina weather seen dry all week, corn at risk
BUENOS AIRES, Jan 3 (Reuters) - Argentine will remain dry on Tuesday and in the days ahead, adding to concern that 2011/12 corn and soy crops will be reduced by lack of rain, local weather forecasters said.
The National Meteorology Service (www.smn.gov.ar) issued a forecast for Tuesday that called for no substantial rains in any of the South American country's soy- or corn-growing areas during the day, although some scattered showers were possible in the southeastern part of La Pampa province.

Sugar softer in correction after rally, coffee dips
LONDON, Jan 4 (Reuters) - ICE sugar fell in early trading in a technical correction after the prior session's strong rally, pressured by a firmer dollar and weaker financial markets, while coffee and cocoa eased in light volumes.
ICE benchmark raw sugar futures edged down 0.1 cent or 0.4 percent to 24.41 cents a lb at 0942 GMT, below a seven-week peak of 24.55 cents per lb touched on Tuesday.

Indonesia's Sulawesi Dec cocoa bean exports drop 21 pct y/y- industry
JAKARTA, Jan 4 (Reuters) - Indonesia's cocoa bean exports from its main growing island of Sulawesi slumped 21 percent to 12,051.72 tonnes in December from 15,169.12 tonnes a year earlier, industry data showed on Wednesday.
Indonesia, the world's third-largest cocoa producer after the Ivory Coast and Ghana, is battling against disease and adverse weather conditions for its cocoa industry, which have hampered the country's cocoa supplies.

Global rubber output may rise 3.1 pct in 2012-ANRPC
BANGKOK, Jan 4 (Reuters) - Global natural rubber production is expected to rise by 3.1 percent to 10.415 million tonnes in 2012, little changed from the previous forecast of a 3.6 percent rise made in November, the Association of Natural Rubber Producing Countries (ANRPC) said on Wednesday.
"The downward revision results from the upward revision for the base year output," the ANRPC said in a report. It has revised up its forecast for 2011 output to 10.100 million tonnes from 10.023 million.

Costa Rica coffee exports edge up in Dec from year ago
SAN JOSE, Jan 3 (Reuters) - Costa Rica, a Central American producer of high-quality arabica coffee beans, exported 78,300 60-kg bags of coffee in December, 2.6 percent more than it exported the same month a year ago, the national coffee institute said.
The coffee harvesting season in the region begins in October and comes to a close in September.

Heavier rain a mixed blessing for Brazil coffee
BRASILIA, Jan 3 (Reuters) - Plentiful rain in Brazil's key coffee growing areas helped trees recover from overly dry weather in the last few months of the year, but relentless showers and little sun in some areas could bring more problems, forecaster Somar said on Tuesday.
The crop now developing in the world's top coffee producer will be a larger 'on year' crop, and a successful, good-sized  harvest is critical for a global coffee market which has seen prices soar since mid-2010 due to a shortage of quality beans.

Vietnam expects coffee exports fall to 18.3 mln bags
HANOI, Jan 3 (Reuters) - Coffee exports from Vietnam, the world's second-biggest coffee producer after Brazil, are forecast to fall by around a fifth from 2011 to 1.1 million tonnes, or 18.33 million bags, the Agriculture Ministry said on Tuesday.
Revenues would reach $2 billion, the ministry said in a report, suggesting an average export price of $1,818 per tonne, free-on-board basis.

Indonesia rubber output to rise 6% in 2012-industry
JAKARTA, Jan 3 (Reuters) - Rubber output in Indonesia, the world's second-biggest producer, is likely to rise 6 percent this year to 3.27 million tonnes as production kicks in from areas replanted around five years ago, an official at the Indonesian Rubber Association said.
"Our natural rubber output in 2012 is estimated at 3.27 million tonnes, up from 3.088 million tonnes in 2011 because the 2006/2007 replanting program will be starting to produce rubber," said Suharto Honggokusumo, executive director at the association, known as Gapkindo, on Tuesday.

Oil Trades Near Eight-Month High on Shrinking Crude Supplies, Iran Tension (Source: Bloomberg)
Oil traded near the highest level in almost eight months in New York as investors speculated that shrinking U.S. crude stockpiles and tension over Iran’s nuclear program will tighten global supplies. Futures were little changed after gaining for a second day. U.S. inventories fell 4.43 million barrels last week, data from the American Petroleum Institute showed. French Foreign Minister Alain Juppe said he hopes a decision on a European Union embargo on Iran’s oil exports will be adopted at a Jan. 30 meeting. London-traded Brent may increase to $125 a barrel should the EU ban Iranian imports, according to Societe Generale SA. “The first look at the inventories was pretty bullish,” said Jeremy Friesen, a commodity strategist at Societe Generale SA in Hong Kong who forecasts West Texas Intermediate crude will average $98.50 a barrel in the first half of the year. “The risk premium remains with Iran and the Middle East.”

China Plans To Set Up State Oil Product Reserves In 2012 (Source: CME)
China plans to set up its first state reserves for refined oil products this year, a person familiar with the situation said. The move indicates Beijing's growing sense of urgency to secure crucial energy supply for an expanding economy and will likely give a fresh boost to global oil prices. The reserves of refined oil products such as gasoline and diesel will be in addition to China's existing crude-oil reserves, which were set up in 2006. The country's apparent consumption of refined oil products in the January-November period was 222.15 million metric tons, up 5%. China is also planning to establish fertilizer reserves, the person, who didn't wish to be named, said. Separately, the government plans to buy 6 million metric tons of rice this year for reserves expansion, the person said, adding that the authorities will also help some companies set up commercial pork reserves in a bid to mitigate volatile price swings. China is also set to raise imports of corn, soybeans, edible oil and cotton this year.
The government will continue to purchase rapeseed and cotton for reserves in 2012, and will curb expansion in industrial corn processing to keep corn prices stable, the person said.

Brent oil stays near $112 on Iran, upbeat data
SINGAPORE, Jan 4 (Reuters) - Brent crude held steady around $112 a barrel, supported by fears of possible supply disruptions from Iran and upbeat economic data from the United States and China.
"The market typically starts the year bullish," said Jeremy Friesen, commodity strategist at Societe Generale.

Oil gains a second day after EU reaches Iran sanctions agreement
NEW YORK, Jan 4 (Reuters) - Brent crude rose for the second straight session Wednesday, closing at a seven-week high after the European Union reached a preliminary agreement to ban imports of Iranian crude, escalating tensions in the West's standoff with Tehran that has gripped oil markets for weeks.
"India, China and some other Asia countries may end up getting a reduced price on Iranian oil and that could be good for their economies, but European countries will have to find other sources," said Gene McGillian, analyst for Tradition Energy in Stamford, Connecticut.

Natural gas gains 3 pct on cold, back over $3/mmBtu
NEW YORK, Jan 4 (Reuters) - U.S. natural gas futures rose more than 3 percent on Wednesday, backed by short covering amid frigid weather in the Northeast and settling above $3 per million British thermal units for the first time in three sessions.
"The weather has turned decidedly colder for a few days as an Arctic blast hits portions of the East Coast. This has resulted in acting as a floor in natural gas prices at the moment with a modest amount of short covering taking place," said Energy Management Institute's Dominick Chirichella.

China's CNPC says 2011 oil output rises to 107.5 mln T
SHANGHAI, Jan 5 (Reuters) - China National Petroleum Corp (CNPC) produced 107.54 million tonnes of crude oil in 2011, up 2.13 million tonnes from the year before, the country's largest oil and gas producer said on its website on Thursday.
The company said its total oil and gas reserves had increased to more than 1 billion tonnes, without giving a specific number.

US crude stocks dip with imports on tax play
Jan 4 (Reuters) -  U.S. commercial crude oil stockpiles likely dropped slightly last week on lower imports as refiners kept trimming stored supplies for year-end tax purposes, an expanded Reuters poll ahead of weekly industry and government reports showed on Wednesday.
Averaging views of eleven analysts surveyed, domestic crude oil inventories were forecast down 200,000 barrels.

20120105 1207 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures end higher, fueled by traders maintaining risk premium in the market amid the uncertainties surrounding South American crop potential. Traders are cautious of crop threats from hot, dry weather, particularly with South American soy crops still ahead of their key stage of development, analysts say. Soy prices also buoyed by end-user buying, such as processors eyeing price breaks as buying opportunities, fearful of prices escalating further on a South American crop scare, analysts add. CBOT March soy end up 2 1/2c at $12.30/bushel.

Soybean Meal/Oil (Source: CME)
Soy-product futures end mixed, with soymeal rising with soybeans on South American crop uncertainty. Soymeal was also buoyed optimistic outlooks for improved domestic demand, with higher broiler prices and a possible reduction in DDG supplies following the expiration of the ethanol blenders tax credit leaving traders hopeful, analysts say. Soyoil backpedaled as traders took profits on long soyoil/short soymeal spreads. March soymeal ended up $1.40 at $320.60/short ton while March soyoil dropped 0.08c to 53.03c/pound.

Soybeans Rise as Dry Weather Hurts South America Crop; Corn Is Unchanged (Source: Bloomberg)
Soybeans rose for the third straight session on speculation that adverse weather in South America will cut production, boosting demand for U.S. supplies. Corn was unchanged. Hot, dry weather will continue to stress crops in Argentina, Paraguay and southern Brazil in the next six days before light rains, T-Storm Weather LLC said in a report. Precipitation will be less than normal and allow for additional soil-moisture evaporation, the forecaster said. “Soybean production will be hurt in South America, and the U.S. is the only source for alternative supplies,” Roy Huckabay, an executive vice president at the Linn Group in Chicago, said in a telephone interview.

Palm oil slips after weather driven-rally
SINGAPORE, Jan 4 (Reuters) - Malaysian crude palm oil futures eased as traders booked profits from a weather-fuelled rally that lifted the market to a six-week high the previous day although an improving global economic outlook limited losses.
"Futures were a little overbought yesterday. Albeit the strong sentiment, product buyers were not enthusiastic at all yesterday. The high prices will dampen the already anaemic demand," said a dealer with a local commodities brokerage in Malaysia.

Indonesia palm oil output seen up 6 pct in 2012 - assoc
JAKARTA, Jan 4 (Reuters) - Crude palm oil (CPO) output in Indonesia, the world's top producer, is expected to rise 6 percent to 25 million tonnes this year, the Indonesian Palm Oil Association (Gapki) said on Wednesday.
Exports of CPO from Southeast Asia's largest economy will climb by as much as 9 percent in 2012 to 17.5-18 million tonnes, the industry group said in a statement.

Argentine soy crush down 5.4 pct in November
BUENOS AIRES, Jan 3 (Reuters) - Argentine soy crushing activity fell 5.4 percent in November year-on-year to nearly 3 million tonnes following a record 2009/10 crop and a smaller 2010/11 season, the government said in its latest crushing report.
Argentina is the world's top supplier of soyoil and soymeal and the No. 3 exporter of unprocessed beans.

Weather erratic for Brazil soy as harvesting starts
BRASILIA, Jan 3 (Reuters) - Heavy showers will sweep over central and northeastern soy regions in Brazil this week but little moisture will reach the critically dry south, forecaster Somar said on Tuesday, as some farmers fire up harvesters to start gathering the crop.
The world's No. 2 soy producer is now well into the wet summer season. But the La Nina weather anomaly has disrupted rainfall patterns in the south, keeping that region and neighboring Argentina's soy areas mostly dry in recent weeks.

Malaysia's December palm oil stocks seen at 5-month low
KUALA LUMPUR, Jan 4 (Reuters) - Malaysia's palm oil stocks likely fell to a five-month low in December as a fall in production outpaced a drop in exports, a Reuters survey of seven plantation firms showed on Wednesday.
Stocks in the world's No.2 producer of the tropical oil probably dropped 5.7 percent to 1.95 million tonnes from 2.01 million tonnes in November as heavy rains disrupted harvests in parts of Malaysia.

India's 2011/12 edible oil imports seen up 6.3 pct
MUMBAI, Jan 4 (Reuters) - India's edible oil imports in the year ending October 2012 are likely to rise by 6.3 percent to 8.9 million tonnes and all the additional imports will be refined palm oil after Indonesia changed export taxes, a senior Indian industry official said.
Indonesia altered duties to make its refined palm oils more attractive than crude palm oil (CPO) from October 2011, prompting warnings from refiners in India, the world's top cooking oil buyer, it would be a "death blow."


Palm oil output and exports from Indonesia, the largest producer, are expected  to rise this year as more palm trees mature amid strong demand from India and  China, a producers group said. Production may rise 6.4% to 25m metric tons  this year, the Indonesia Palm Oil Association, known as  Gapki, said in a  statement today.  Exports may increase to 17.5m tons to 18m tons from an estimated  16.5m tons last year, the group said. Increased supplies from the  Southeast Asian country may add to price declines in the commodity  which fell about 16% last year in Kuala Lumpur after output in  Indonesia and Malaysia, the second biggest producer, expanded and the  European sovereign-debt crisis curbed demand. (Bloomberg)