Thursday, February 16, 2012

20120216 1815 FCPO EOD Daily Chart Study.

FCPO closed : 3189, changed : -12 points, volume : higher.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : rising, buyer taking exposure.
Support : 3150, 3100, 3070, 3050 level.
Resistance : 3200, 3250, 3270, 3300 level.
Comment :
FCPO closed recorded small loss with increasing volume traded. Soy oil price currently trading lower after overnight closed recorded gains while crude oil price retracing lower after overnight gains.
Uncertainty over Greece bailout development resulted global commodities to drift lower plus weaker CPO export data reported yesterday also pressured FCPO to trade lower.
Technical reading adjusted to suggesting a side way range bound little upside biased market development.
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.

20120216 1802 FKLI EOD Daily Chart Study.

FKLI closed : 1547, changed : -13.5 points, volume : higher.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : turned lower, buyer taking profit.
Support : 1540, 1530, 1515, 1505 level.
Resistance : 1550, 1565, 1570, 1580 level.
Comment :
FKLI closed recorded loss with better volume changed hand doing 3.5 point discount compare to cash market that closed lower. Overnight U.S. markets closed lower and today Asia markets ended declined lower while European markets also trading in negative territory.
Global markets sentiment turned negative after news of Greece second bailout was postponed and slower foreign direct investment in China.
Chart study still suggesting a pullback correction upside biased market development after recent gains.
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.

20120216 1707 Regional Markets EOD Daily Chart Study.

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

20120216 1633 Global Market & Commodities Related News.

Stocks fall as Greek bailout delay dampens mood
TOKYO, Feb 16 (Reuters) - Asian shares and the euro fell as another delay in cementing a crucial bailout for stricken Greece underscored how far Europe is from resolving a debt crisis that threatens the stability of the financial system.
"It's not clear whether Athens will be able to secure funds needed to redeem bonds on March 20," said Sumino Kamei, senior analyst at Bank of Tokyo-Mitsubishi UFJ.

FOREX-Euro hits 3-week low vs dlr on bailout delay worries
TOKYO, Feb 16 (Reuters) - The euro slid to a three-week low versus the dollar on Thursday as officials in Europe considered delaying a bailout package for Greece even as the indebted country met demands set by international lenders.
Several EU sources said on Wednesday the euro zone is examining ways of holding back parts or even all of the bailout programme until after elections expected in Greece in April while still ensuring it avoids a disorderly default.

W.Australia grains harvest hits record 15 mln/t-minister
SYDNEY, Feb 16 (Reuters) - Western Australia state's 2011-2012 grains harvest has exceeded 15 million tonnes for the first time, with more than 80 percent of the tonnage earmarked for export, the state government said on Thursday.
The bumper crop was recorded despite an abnormally wet and protracted harvest in recent months, Terry Redman, the state's minister for agriculture said in a statement.

US ethanol production rises, stocks at record high
Feb 15 (Reuters) - U.S. ethanol makers stepped up production of the biofuel last week after output had fallen to a 2-1/2 month low and stocks swelled to a fresh record high, the Energy Information Administration reported on Wednesday.
Ethanol production averaged 928,000 barrels a day in the week ended Feb. 10, up 5,000 barrels per day from the previous week, a 0.5 percent increase, EIA data showed.

Big exports but cattle herd expansion unclear-USDA
WASHINGTON, Feb 15 (Reuters) - Recent drought and forecasts for limited rainfall could constrain the size of the U.S. cattle herd despite high retail beef prices and forecasts for near-record exports, the Agriculture Department said on Wednesday.
Record-high retail beef prices "are not sufficient to provide the long-term margins and profits the wholesale and cattle feeding sectors must have in order to sustain an expansion," USDA economists said in a monthly outlook report.
 
Ukraine says no plans to limit grain exports
KIEV, Feb 15 (Reuters) - Ukraine, which risks losing a large part of its winter grains due to poor weather conditions, has no immediate plans to curb exports of grain, Agriculture Minister Mykola Prysyazhnyuk said on Wednesday, commenting on market concerns.
"There are no plans to limit grain exports," he told reporters.

Uganda's 2012 sugar production seen up 26 pct
KAMPALA, Feb 15 (Reuters) - Uganda's 2012 raw sugar production is forecast to rise 26 percent, boosted by expected good weather and higher cane supplies from outgrowers, an industry official said on Wednesday.  
Wilberforce Mubiru, secretariat manager at Uganda Sugar Cane Technologists Association (USCTA), told Reuters the east African country would produce about 327,075 tonnes of sugar, up from last year's 259,413 tonnes.

U.S. grains edge up on mixed signs
SYDNEY, Feb 16 (Reuters) - U.S. grains futures rose slightly  in early Asian trade as soy reached a near four-month high in a previous session on higher U.S. export demand and dry weather concerns in South America. Wheat and corn were holding their ground after dipping on technical selling and expectations of rising U.S. corn stocks in 2012/13.
A Chinese trade delegation signed agreements with U.S. grain companies on Wednesday to buy 8.62 million tonnes of soybeans from the United States and will ink more deals on Thursday for a record-setting purchase topping 12 million tonnes.

Brent slips on Greece woes; stays above $118 on supply fears
SINGAPORE, Feb 16 (Reuters) - Brent crude prices slipped on fears of a delay in a second bailout package for debt-ridden Greece, although worries of supply disruption from Iran and U.S. data showing an unexpected drop in inventories limited the drop.
"The volatility in risk assets, concerns of supply in the Middle East, and drawdown of U.S. crude inventories are all putting a floor on oil prices," Ben Le Brun, market analyst at OptionsXpress.

LME copper hits 3-week low, Greece delay sours mood
SHANGHAI, Feb 16 (Reuters) - London copper hit a three-week low, having lost ground for the last four sessions, after signs of a delay to a bailout for Greece soured sentiment and put the euro on the defensive against the dollar.
"Markets are very sensitive at the minute and any more weak numbers over the next couple of days in the very near term could add to downside pressure on metals," he said.

METALS-LME copper hits 3-week low, Greece delay sours mood
SHANGHAI, Feb 16 (Reuters) - London copper hit a three-week low on Thursday, having lost ground for the last four sessions, after signs of a delay to a bailout for Greece soured sentiment and put the euro on the defensive against the dollar.
Three-month copper on the London Metal Exchange  slipped 1.4 percent to $8,256.25 a tonne by 0332 GMT, lowest since Jan. 24.  

PRECIOUS-Gold edges down on Greece aid delay concerns
SINGAPORE, Feb 16 (Reuters) - Gold edged lower on Thursday, tracking a weaker euro, as hopes of solving Greece's crisis dimmed, with the euro zone pondering a delay of the bailout for the debt-ridden nation.
Spot gold rallied 1 percent at one point on Wednesday on expectations of a solution for the Greek crisis, but sentiment soured after news that euro zone finance officials were considering delaying parts, or even all, of a second bailout program for Greece.

Gold edges down on Greece aid delay concerns
SINGAPORE, Feb 16 (Reuters) - Gold edged lower , tracking a weaker euro, as hopes of solving Greece's crisis dimmed, with the euro zone pondering a delay of the bailout for the debt-ridden nation.
"Things will get revolved, but it is going to be a slow process and it will continue to be frustrating for investors," said Jeremy Friesen, commodity strategist at Societe Generale in Hong Kong.

20120216 1112 Global Market & Commodities Related News.

GLOBAL MARKETS-Markets fall, Greek bailout delay dampens mood
TOKYO, Feb 16 (Reuters) - Asian shares and the euro fell on Thursday, sharply reversing the previous day's rally as optimism was dashed by another delay in cementing a crucial bailout for stricken Greece, underscoring how far away Europe is from resolving its debt crisis.
"The news of a Greek delay may prompt profit-taking for overheated markets, but fundamentally speaking the talks are advancing towards a bailout," said Hiroichi Nishi, equity general manager at SMBC Nikko Securities.Nishi.  

Fed Divided on Need for More Stimulus Amid Signs Economy Gaining Strength (Bloomberg)
A few members of the Federal Open Market Committee meeting said the central bank may soon have to consider more asset purchases, while others said the economic outlook would have to deteriorate first. A few members said economic conditions “could warrant the initiation of additional securities purchases before long,” according to minutes of their Jan. 24-25 meeting released today in Washington. “Other members indicated that such policy action could become necessary if the economy lost momentum or if inflation seemed likely to remain” below 2 percent in the medium run. The central bank said at its meeting last month that it plans to hold interest rates near zero at least through late 2014 to spur growth and reduce unemployment, extending a previous date of mid-2013. Fed Chairman Ben S. Bernanke has since repeated the pledge, which was made before a report this month showing that the jobless rate fell to a three-year low of 8.3 percent in January.

COMMODITIES-Brent ends at 8-month high; cocoa up 5 pct
NEW YORK, Feb 15 (Reuters) - Brent crude oil extended its run-up on Wednesday, closing at an  eight-month high on escalating Middle East tensions, while copper fell on possible delays to Greece's bailout package.
"The oil markets are doing a balancing act between what's happening in Iran and the euro zone, where the Greek bailout deal may still fall apart," said Chris Dillman, analyst at Tradition Energy in Stamford, Connecticut.

Brent ends at 8-month high on supply risks
NEW YORK, Feb 15 (Reuters) - Brent oil settled at an eight-month high on Wednesday as fears of supply disruptions from Iran and other producers in the Middle East and Africa outweighed worries about the global economy.
"The oil markets are doing a balancing act between what's happening in Iran and the euro zone, where the Greek bailout deal may still fall apart," said Chris Dillman, analyst at Tradition Energy in Stamford, Connecticut.

US natgas futures end lower ahead of stocks data
NEW YORK, Feb 15 (Reuters) - U.S. natural gas futures ended sharply lower on Wednesday, fully erasing yesterday's gains amid still-bearish weather forecasts and expectations for another light weekly inventory draw on Thursday.
"Today is a give-back day riding on basically the same fundamentals. We're bearish going into tomorrow's (EIA) report as (it is) likely the biggest surplus expansion of the season," Gelber & Associates analyst Pax Saunders said in a report.

Euro Coal-Prices creep up 50c with power, gas
LONDON, Feb 15 (Reuters) - Utilities and traders continued to offer a variety of coal origins for prompt delivery into Europe, but coal prices moved up by 25-50 cents on Wednesday in line with rises in oil, power and gas.
"Power and gas rose, oil hit a six-month high so coal followed but only by a matter of cents, there's still a lot of coal around," one European trader said.

20120216 0948 Local & Global Economic Related News.

Economy: Direct investment posts net outflow of RM7.9bn
Bank Negara Malaysia (BNM) said direct investment posted a net outflow of RM7.9bn for 4Q 2011 from RM7.7bn in the previous quarter. Y-o-Y direct investment switched to net outflow of RM7.9bn from net inflow of RM1.9bn in the previous corresponding period. The central bank said the scenario was attributed to higher net outflow in direct investment abroad (DIA) of RM14.4bn (Q4 2010: -RM8.9bn) and lower net inflow in foreign direct investment (FDI) of RM6.5bn (Q4 2010:RM10.7bn). (Bernama)

Economy: Moody's says Malaysia economy to grow 4.2% in 2012
Moody's Analytics associate economist Fred Gibson says Malaysia's economy is expected to expand by 4.2% this year, driven by resilient household consumption and investment. He said the weakening global economy and soft landing in powerhouse economies namely India and China will weigh on Malaysia's export-oriented industries. He added that resilient household consumption and investment will help offset more moderate growth ahead. According to Gibson, the Malaysian economy is estimated to grow a robust 4.5%y-o-y in the 4Q 2011. The solid GDP growth in 4Q 2011 was supported by buoyant industrial production, burgeoning consumer spending and healthy credit growth that boosted domestic demand, despite global turbulence. (Financial Daily)

Malaysia: 4Q GDP growth slows to 5.2%
The domestic economy grew at a slower pace of 5.2% in 4Q11, compared with 5.8% in the preceding quarter. For year 2011, the annual GDP growth rate was 5.1%, a rather drastic drop against the 7.2% in 2010. However, the decelerating growth is expected amidst the external headwinds in the global economy. Bank Negara Malaysia said the GDP growth was underpinned by domestic demand supported by both private and public expenditure. (Financial Daily)

Australia: RBA’s Lowe sees wage restraint, productivity easing inflation
Australia’s central bank is relying on slower wage growth and better productivity to contain inflation pressures as the damping effects of a four-decade high currency begin to wane, Deputy Governor Philip Lowe said. Australia’s currency has risen 4.8% this year and reached a six-month high of USD1.0845 last week after the Reserve Bank of Australia unexpectedly kept its benchmark borrowing cost at 4.25%. (Bloomberg)

China: To keep investing in Eurozone debt
China will continue to invest in eurozone government debt, the country’s central bank governor said yesterday, while calling on Europeans to produce more attractive investments products for China. Central Bank Governor, Zhou Xiaochuan admitted that China and other emerging nations were waiting for the right time to help the bloc, after a European Union state visit was once again met with encouraging words but no concrete public commitments on fresh funding from China. He suggested Europe needed to work harder to entice Beijing to part with its capital (Financial Daily)

Brazil: USD32bn budget cut allows rate fall, Mantega says
Brazil will cut BRL55bn (USD32bn) from this year’s budget to allow interest rates to fall, while increasing investment to boost growth in the world’s second-biggest emerging market. The cut will allow interest rates to fall and enable President Dilma Rousseff to meet the targeted budget surplus before interest payments this year of BRL139.8bn without sacrificing public investment, Finance Minister Guido Mantega said. (Bloomberg)

EU: Demands more Greek budget controls in bid to forge rescue
Europe’s creditor countries struggled to bridge divisions over a rescue of Greece, seeking more control over how future aid is spent as the clock ticked toward a possible default next month. In a replay of the brinkmanship that marked the early stages of the Greek crisis two years ago, euro-area finance ministers extracted concessions from political leaders in Athens intended to pave the way for the endorsement of a EUR130bn aid package next week. Greece’s plea for more aid on top of the EUR110bn awarded in 2010 has stirred recriminations on both sides of Europe’s north-south economic divide. (Bloomberg)

EU: Greek rescue talks hit snag as EU presses for assurances
Greece said that Europe’s wealthier countries are “playing with fire” by toying with the idea of expelling it from the 17-nation euro area as talks over a second aid program ran into new obstacles. Finance Minister Evangelos Venizelos leveled the accusation after a decision slated for tonight on aid totaling EUR130bn was postponed until at least 20 Feb and possibly until after a full-time Greek government emerges from elections later in the year. Two years after pledging to pull Greece back from the brink, European leaders are torn between pouring more aid into the struggling economy or risking an unprecedented national bankruptcy that might force the country out of the euro and prompt renewed market tumult. (Bloomberg)

US: Factories churning out more goods buoy growth
Factories in the US boosted production in January, capping the biggest back-to-back increases in more than two years, showing manufacturing will remain at the forefront of the expansion. Output rose 0.7% after a revised 1.5% gain in December, the best two-month performance since July and August 2009, when the world’s largest economy was emerging from the recession, according to figures issued by the Federal Reserve yesterday in Washington. Other reports showed homebuilders turned less pessimistic in February and manufacturing in the New York region grew. (Bloomberg)

20120216 0947 Malaysia Corporate Related News.

SapuraCrest enters into several agreements with Petrofac, Kencana Petroleum
SapuraCrest Petroleum’s wholly-owned subsidiary, SapuraEnergy Ventures SB, has entered into several agreements with Petrofac FPSO Holding Ltd and Kencana Petroleum Ventures SB. In an exchange filing yesterday, the oil and gas firm said the agreements were in respect of investment on floating production, storage and offloading vessel (FPSO) that will form part of the facilities to be provided for the development and production of hydrocarbon resources from the Berantai marginal field. (Malaysian Reserve) Please see accompanying report

AirAsia plans low cost airline for Gulf Region
AirAsia is in talks to establish a low cost carrier serving the Gulf region, a market that is largely dominated by full service carriers, said its Group CEO Tan Sri Tony Fernandes. He said Air Asia could potentially tap the pilgrimage (umrah) and tourism markets within the Gulf Cooperation Council (GCC) countries. “For the low cost carrier model in the Gulf, we really are creating new markets much like what AirAsia has done in Malaysia,” Fernandes said after launching Tune Middle East in the Qatari capital yesterday. (Financial Daily)

AirAsia X’s revenue jumps 47% in 2011
AirAsia X saw a 47% jump in revenue for the year ended 31 Dec 2011. The long haul budget airline posted RM11.9bn revenue for 2011 compared with RM1.28bn in 2010. “AirAsia X was able to achieve positive load factor growth and average fare growth at the same time, on all of the routes that is has operated for at least a full year. The plan will see AirAsia X “increase our flight frequencies on existing routes and look at expanding our network further across Asia Pacific,” AirAsia X chief executive officer Azran Osman-Rani said in a statement yesterday. (BT)

Compugates set to secure RM2bn solar jobs in Sabah
Compugates Holdings, a distributor of consumer electronics products, is expected to clinch several solar-based projects in Sabah worth over RM2bn, driving growth for its green renewable energy solutions. Its unit, Compugates Sabah SB (CSSB), has won a pilot project from the Board of Trustees of Sabah Parks to supply and install 6kWh Green Solar Hybrid System in Pulau Gulisaan, Turtle Island Park in Sabah for RM270,000. (BT)

Parties deciding on gas price
The Energy Commission, Petroliam Nasional Bhd (Petronas) and the Economic Planning Unit are discussing the final recommendation to the Cabinet regarding the price of gas. Sources told StarBiz that meetings were held almost every week to look into how much should be borne by Tenaga Nasional Bhd (TNB) and the independent power producers (IPPs) and, finally, the end-consumers. (StarBiz)Please see accompanying report

Mulpha sells Mantra stake for RM111m
Property development group Mulpha International is selling its 75% stake in Mantra Holdings Co Ltd for RM111.5m cash to Eagle Legend International Holdings Ltd. Mantra, which is listed on the main board of the Hong Kong Stock Exchange, is involved in the rental and trading of tower cranes, trading of construction equipment and provision of maintenance service for tower cranes in Hong Kong, Macau, Singapore and Vietnam. (BT)

Legal tussle continues for Kian Joo Can Factory
Datuk See Teow Chuan and 13 other parties have filed an appeal to the Federal Court to review and set aside the ruling that allowed Can-One to acquire a 32.9% stake in Kian Joo Can Factory. See, who was formerly the group managing director of KJFC, is still a non-independent and non-executive director of KJCF. (StarBiz)

PPB Group: Subsidiary eyes Vietnam flour company
Flour company PPB Group, via subsidiary Glowland Ltd, is looking at investing up to RM40m to buy 51% of Vietnam-based VFM-Wilmar Flour Mills Co Ltd. The group will join a partnership with Siteki Investment Pte Ltd to operate wheat flour milling and the sale of flour, flour-based products and by-products. (Business Times)

Felda Global: IPO still going through regulatory process
The IPO of Felda Global Venture Holding Bhd is going through the usual regulatory process and nothing has been finalized yet. Felda group chairman Tan Sri Mohd Isa Abdul Samad said the prospectus was recently submitted to the SC for approval. (Financial Daily)

Compugates: Set to win RM2bn solar jobs in Sabah
Compugates Holdings is expected to clinch several solar-based projects in Sabah worth over RM2bn, driving growth for its green renewable energy solutions. Its unit, Compugates Sabah Sdn Bhd (CSSB), has won a pilot project from the Board of Trustees of Sabah parks to supply and install a 6kWh Green Solar Hybrid System in Pulau Gulisaan, Turtle Island Park in Sabah for RM270,000.  The project will enable the turtle sanctuary and hatchery on the island to have round-the clock electricity supply while, at the same time, achieve reduced  carbon footprint via the hybrid system.  A source said Compugates is targeting bigger projects in Sabah and will be setting up a plant soon for around RM30m. (Business Times)

MESB: Mulls buying 3 apparel brands
Engineering services provider, MESB is looking at the acquisition of  3 potential apparel brands to strengthen its retail business division.  Executive director Yam Kin Lum said the company had set aside RM5m  from the disposal of its telecommunication engineering company, Dynamic Communication Link Sdn Bhd, to grow its retail business over the next two years. He said the company hopes to complete at least the acquisition of one brand in the current financial year ending March 31.  He said the new acquisition is expected to contribute 15% to the company's revenue in the next financial year. (Business Times)

CB Industrial: Acquires two Indonesian plantation firms
CB Industrial (CBIP) announced that it would acquire a 94% stake in two Indonesian oil palm plantation companies for RM16m in cash. The move comes in the midst of CBIP disposing of its Malaysian-based oil palm plantation assets. In Jun last year, CBIP announced that it would dispose of its shareholdings in Sanchiew Plantations Sdn Bhd to Yuwang Plantation Sdn Bhd, Goldhill Innovation Sdn Bhd, and See Hong Chen & Sons Sdn Bhd for RM108.1m in cash. It is also disposing of its 100% equity interest in Empresa (M) Sdn Bhd, which is also involved in oil palm, to Yuwang, Multi Elite Enterprise Sdn Bhd and See Hong  Chen & Sons for RM159.94m in cash. However, the disposal has yet to be completed despite having passed the approved deadline on Dec 31, 2012. (Financial Daily)

Shin Yang: Builds on fleet, buys vessels worth RM100m
Shin Yang Shipping Corp (Syscorp) has acquired more than 20 vessels, mostly container ships and chemical tankers, from Swee Joo which is under voluntary liquidation due to insolvency. Syscorp  CEO Capt Ting Hien Liong said Swee Joo's vessels were bought for more than RM100m with bank borrowings. The fleet includes 4 chemical tankers, which were previously used to transport crude palm oil and products. He said they are now doing maintenance and upgrading works for most of the acquired vessels. It will take between  6 and 8 months to complete.  He expects the maintenance and upgrading works to cost around RM50m. (StarBiz)

KYM Holdings: In Perak land reclaimation pact
PECOH Industrial Development Sdn Bhd (PIDSB)  has entered into a Joint Development Agreement (JDA) with the Perak State Development Corporation (PKNP) to reclaim 1,360 hectares of land in Bagan Datoh. The project is part of the Perak Eco Industrial Hub (PECOH). PECOH is a subsidiary of PEIH Holdings Sdn Bhd, which in turn is an associated company of KYM Holdings. Bagan Dato has been identified as an area to initiate projects in PECOH due to its strategic location, and the Perak state government is setting up a heavy industrial zone in its efforts to promote industrial development in the state. (Business Times)

Construction: RM30bn sukuk plan to fund MRT
The government plans to raise between RM20bn and RM30bn through the sale of long-term Islamic bonds to fund the Klang Valley MY Rapid Transit (MRT), the  country’s largest infrastructure project. Datuk Azhar Abdul Hamid, chief executive officer of MRT Corp said that the bonds, with a tenure of up to 65 years, will be finalised over the next 3 to 4 months. However, he noted that forinitial funding of the project, a consortium of banks are expected to provide a bridging loan of between RM400m and RM500m. (Business Times)

Construction: 7 to bid for new highway
Sources said that the government has called a tender for the Kinrara-Damansara highway contract, with seven companies invited to bid for the job. The companies include Bina Puri, Mudajaya and privately-owned Pesona Metro Sdn Bhd.  The source added that the tender letters for the highway are just out and it is not certain yet on the tenure of concession as the concession agreement has not been finalized. (Financial Daily)

Power: Parties deciding on gas price
The Energy Commission, Petronas and the Economic Planning Unit are discussing the final recommendation to the Cabinet regarding the price of gas. Sources said meetings were held almost every week to look into how much should be borne by Tenaga Nasional (TNB) and the independent power producers (IPPs) and, finally, the end-consumers. TNB and the IPPs, which had earlier asked for bigger margins on higher risk premium then, would have to consider sacrificing some margins to ensure that the final cost of electricity was kept under control. (StarBiz)

Cypark Resources Bhd expects its solar farming segment to be the main contributor to its profit when its 80ha integrated renewable energy plant, the largest in Southeast Asia, becomes operational next month. (Financial Daily)

20120216 0937 Global Market Related News.

Asia Stocks Fall on Bailout Delay Concern (Source: Bloomberg)
Asian stocks fell, with the regional benchmark index retreating from a six-month high, after a decision on a second bailout for Greece was postponed, rekindling concern that Europe’s sovereign-debt crisis will crimp global demand. Canon Inc. (7751), the world’s biggest camera maker that gets 32 percent of its revenue in Europe, fell 1.1 percent. Westpac Banking Corp. (WBC), Australia’s second-largest lender, fell 3.8 percent after reporting fist-quarter profit that was lower then a year earlier. BHP Billiton Ltd. (BHP), the world’s No. 1 mining company, lost 1.6 percent after metal prices dropped. The MSCI Asia Pacific Index dropped 0.7 percent to 126.48 as of 9:14 a.m. in Tokyo. The measure yesterday rose 1.9 percent to 127.34, the highest level since Aug. 4.

Japanese Stocks Decline as Greek Bailout Delay Sparks Debt Crisis Concern (Source: Bloomberg)
Japanese stocks fell for the first time in four days after European policy makers postponed a second bailout for Greece, reigniting concern the region’s debt crisis will hurt exporters’ earnings outlook. Kyocera Corp. (6971), an electronics maker that gets almost 20 percent of its sales in Europe, lost 1 percent. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s top lender by market value, slid 1.2 percent. Olympus Corp. (7733), a camera maker still reeling from an accounting scandal, fell 1.3 percent on a report prosecutors will question former top executives. The Nikkei 225 Stock Average fell 0.2 percent to 9,245.37 as of 9:06 a.m. in Tokyo. The broader Topix Index lost 0.2 percent to 801.25, with twice as many shares declining as advancing.
“There’s a persistent concern that creditors may have to pardon parts of debt not only for Greece, but also for other southern European nations,” said Toshiaki Iwasaki, an analyst at Mito Securities Co. “Technical indicators show Japan’s stocks are being overbought, and we should see a sell-off as investors take profits.”

Stocks in U.S. Fall Amid Concern Greece May Be Closer to Default on Debt (Source: Bloomberg)
U.S. stocks fell, sending the Standard & Poor’s 500 Index lower for a second day, as concern grew that Greece was moving closer to default and the Federal Reserve said policy makers were divided on buying more assets. Apple Inc. (AAPL) decreased 2.3 percent, reversing a 3.3 percent rally and snapping an eight-day advance. Industrial shares had the biggest decline in the S&P 500 among 10 groups as Deere & Co. tumbled 5.4 percent after lowering its 2012 U.S. farmer revenue forecast. The Dow Jones Transportation Average, a proxy for the economy, slumped 2 percent as CSX Corp. (CSX) and Union Pacific Corp. (UNP) retreated more than 2.8 percent. The S&P 500 declined 0.5 percent to 1,343.23 at 4 p.m. New York time, reversing an earlier increase of as much as 0.4 percent. The Dow Jones Industrial Average decreased 97.33 points, or 0.8 percent, to 12,780.95 today.

European Stocks Advance on China Help; BNP, Heineken Gain After Earnings (Source: Bloomberg)
European stocks rose as China said it will help resolve the region’s debt crisis and companies from BNP Paribas SA (BNP) to Heineken (HEIA) NV reported earnings that beat analysts’ estimates. BNP Paribas, France’s largest bank, climbed 4.1 percent and and Heineken, the world’s third-biggest brewer, rose 3.7 percent. Clariant (CLN) AG advanced 5.7 percent after earnings exceeded projections and the chemical maker said it may sell its textile and paper units. The Stoxx Europe 600 Index added 0.6 percent to 264.16 at the close of trading, paring an earlier gain of 1 percent amid speculation a Greek aid package could be delayed until after April elections. The gauge has rallied 8 percent this year as U.S. economic data improved and optimism grew that the euro area will contain its sovereign-debt crisis.
“China has pledged to contribute to the bailout fund, which not only could increase the firepower available but might also persuade other countries like Japan, Russia, oil-rich states and possibly even the U.S. to actively take part in combating the crisis,” said Markus Huber, head of German sales trading at ETX Capital in London.

Emerging Market Stocks Climb Most in a Week on China’s Pledge to Europe (Source: Bloomberg)
Emerging-market stocks rose the most in a week after China said it will get more involved in resolving Europe’s debt crisis, boosting demand for riskier assets. The MSCI Emerging Markets Index (MXEF) advanced 1.1 percent to 1,058.47 at the close in New York, the most since Feb. 8. Russia’s Micex Index (INDEXCF) rose to a six-month high as OAO OGK-3 surged on speculation it will merge its power assets in a share swap. India’s BSE Sensitive Index, or Sensex, also advanced to the highest level since August, led by Tata Motors (TTMT) Ltd., while Brazil’s Bovespa added 0.5 percent in Sao Paulo as homebuilders jumped. People’s Bank of China Governor Zhou Xiaochuan said the nation will invest in Europe’s bailout funds and keep holdings of euro-denominated assets, bolstering the debt-stricken region that is China’s biggest trading partner. China is ready to get “more deeply involved” in helping Europe, Premier Wen Jiabao said on Feb. 14.

Some Fed Officials Saw a Need for Additional Asset Purchases ‘Before Long’ (Source: Bloomberg)
A few members of the Federal Open Market Committee meeting said the central bank may soon have to consider more asset purchases, while others said the economic outlook would have to deteriorate first. A few members said economic conditions “could warrant the initiation of additional securities purchases before long,” according to minutes of their Jan. 24-25 meeting released today in Washington. “Other members indicated that such policy action could become necessary if the economy lost momentum or if inflation seemed likely to remain” below 2 percent in the medium run. The central bank said at its meeting last month that it plans to hold interest rates near zero at least through late 2014 to spur growth and reduce unemployment, extending a previous date of mid-2013. Fed Chairman Ben S. Bernanke has since repeated the pledge, which was made before a report this month showing that the jobless rate fell to a three-year low of 8.3 percent in January.

Factories Churning Out More Goods Buoy U.S. Growth: Economy (Source: Bloomberg)
Factories in the U.S. boosted production in January, capping the biggest back-to-back increases in more than two years, showing manufacturing will remain at the forefront of the expansion. Output (IPMGCHNG) rose 0.7 percent after a revised 1.5 percent gain in December, the best two-month performance since July and August 2009, when the world’s largest economy was emerging from the recession, according to figures issued by the Federal Reserve today in Washington. Other reports showed homebuilders turned less pessimistic in February and manufacturing in the New York region grew. Business investment in new equipment and the need to rebuild inventories as sales improve will probably keep factory assembly lines rolling at the start of 2012. Additionally, a more stable residential real-estate market would remove an impediment to the recovery after declines in home construction subtracted from economic growth in each of the past six years.

New York Area Factories Unexpectedly Expand at Fastest Pace Since June ’10 (Source: Bloomberg)
Manufacturing in the New York region expanded in February at the fastest pace since June 2010, a sign factories are propelling the expansion. The Federal Reserve Bank of New York’s general economic index increased to 19.5 this month from 13.5 in January. The index exceeded all forecasts in a Bloomberg News survey of economists. Readings greater than zero signal expansion in the so-called Empire State Index, which covers New York, northern New Jersey, and southern Connecticut. Investment in new equipment and inventory restocking this quarter will help keep American factories expanding even as slower global growth limits exports. A pickup in job creation that helps drive bigger gains in consumer spending may further fuel production.

China Capital Flow May Limit Reserve Ratio Cuts (Source: Bloomberg)
Capital flows into China have rebounded this year, the central bank said, adding to the case for officials refraining from making more cuts in banks’ reserve requirements. Expectations for a decline in the value of the yuan against the U.S. dollar have also reversed, with non-deliverable forward contracts now forecasting no change or some appreciation, the People’s Bank of China said in a quarterly monetary policy report posted on its website yesterday. It didn’t specify when the document was prepared. China reduced the amount of money banks must set aside as reserves for the first time in three years in December as capital inflows dried up amid Europe’s debt crisis, exacerbating a domestic credit crunch. UBS AG and Nomura Holdings Inc. have scaled back forecasts for cuts after liquidity increased and the trade surplus surged.

No More Valentines for Xi as Chinese Leader Faces a Bad-Cop U.S. Congress (Source: Bloomberg)
Chinese Vice President Xi Jinping, in line to become the country’s top leader next year, met congressional leaders amid criticism of China’s record on human rights, trade and currency issues. Xi’s third day in Washington included sessions with Senate Majority Leader Harry Reid and his Republican counterpart Mitch McConnell, and with House Speaker John Boehner and House Majority Leader Eric Cantor, who raised questions on human rights and religious freedom and criticized intellectual property protections. “The rhetoric out of the Congress on China is much more muscular and confrontational because they know they’re not running China policy; the White House is running China policy,” Robert Kapp, a business consultant focused on China and former president of the U.S.-China Business Council, said in a phone interview. “It’s a bad cop, good cop situation.”

Singapore Budget Seen Aiding Poor as 14-Year Low Unemployment Spurs Costs (Source: Bloomberg)
Singapore’s 2012 budget will probably feature assistance for the poor even after the island reported its lowest unemployment rate since the late 1990s, as policy makers seek to address the soaring cost of living. The government may improve a program to supplement the income of low-wage earners and give them rebates on municipal service fees, Singapore-based lenders Oversea-Chinese Banking Corp. (OCBC) and United Overseas Bank Ltd. predict. Citigroup Inc. said the budget may prioritize middle- and lower-income households over businesses in the short run. Prime Minister Lee Hsien Loong has signaled a shift toward addressing public discontent over rising prices and an influx of foreigners, after his ruling party suffered its weakest electoral win since independence in 1965. Efforts to boost the economy by allowing casinos and luring pharmaceutical companies have stoked jobs growth while propelling transportation and housing costs higher, making life harder for the city’s poorest.

Singapore Economy Shrinks Less Than Estimated (Source: Bloomberg)
Singapore’s economy shrank less than initially estimated last quarter as a surge in pharmaceutical production supported manufacturing at the year end. Gross domestic product fell an annualized 2.5 percent in the fourth quarter of 2011 from the previous three months, less than an initial estimate of a 4.9 percent decline, the trade ministry said in a report today. Non-oil domestic exports will probably rise 3 percent to 5 percent in 2012, the trade promotion agency said in a separate statement, reiterating an earlier forecast. Asian nations from China to India have seen an improvement in manufacturing this year based on purchasing managers indexes, while Malaysia reported growth that slowed less than economists estimated last quarter, suggesting the region is withstanding the impact of the European debt crisis. The gains may wane as Europe faces its second recession in less than three years, and pressure on Singapore’s central bank to support expansion may persist after it eased its policy stance last quarter.

Juncker Says He’s Confident Ministers to Decide on Greek Rescue on Feb. 20 (Source: Bloomberg)
Luxembourg Prime Minister Jean- Claude Juncker said he’s confident euro-area finance ministers will make a decision on a bailout for Greece at their next meeting on Feb. 20. Juncker, chairman of the group, issued a statement after the ministers held a conference call today on the Greek package.

Europe Demands More Greek Budget Controls (Source: Bloomberg)
Europe’s creditor countries struggled to bridge divisions over a rescue of Greece, seeking more control over how future aid is spent as the clock ticked toward a possible default next month. In a replay of the brinkmanship that marked the early stages of the Greek crisis two years ago, euro-area finance ministers extracted concessions from political leaders in Athens intended to pave the way for the endorsement of a 130 billion- euro ($171 billion) aid package next week. While “further considerations are necessary regarding the specific mechanisms to strengthen the surveillance of program implementation,” Europe is set to make “all the necessary decisions” on Feb. 20, Luxembourg Prime Minister Jean-Claude Juncker said in an e-mailed statement after chairing a conference call of finance chiefs late yesterday.

Greek Talks Hit Snag as EU Seeks Assurances (Source: Bloomberg)
Greece said that Europe’s wealthier countries are “playing with fire” by toying with the idea of expelling it from the 17-nation euro area as talks over a second aid program ran into new obstacles. Finance Minister Evangelos Venizelos leveled the accusation after a decision slated for tonight on aid totaling 130 billion euros ($171 billion) was postponed until at least Feb. 20 and possibly until after a full-time Greek government emerges from elections later in the year. “We are continually faced with new terms,” Venizelos told reporters in Athens today. “In the euro area, there are plenty who don’t want us anymore. There are some playing with fire, domestically and abroad. Some are playing with torches and some are playing with matches. But the risk is equally great.”

20120216 0937 Global Commodities Related News.

Corn (Source: CME)
US corn futures end lower, stumbling on a lack of demand and technical selling. Strength in soybeans was not enough to save corn, where losses accelerated during the session after prices fell below a recent trading range to a 3-week low, prompting more selling. The market lacks a fresh catalyst to rally and may not get one until spring planting starts to take shape, traders say. Meanwhile, corn's recent weakness versus soybeans means an expected surge in corn plantings this year may not be as strong as many have assumed, traders add. CBOT corn ends down 6 1/2c at $6.27/bushel.

Wheat (Source: CME)
U.S. wheat futures end mostly lower on overflowing world supplies and pressure from corn. The market falls to 3-week lows, along with corn, despite gains in soybeans. Traders say wheat supplies are large enough to offset recent Black Sea region supply disruptions, and that export demand could continue to struggle. Increased feed wheat demand could limit losses however, traders say. Spot CBOT futures settle just above 50-day and 100-day moving averages. CBOT March wheat ends down 9c to $6.26 a bushel, KCBT March wheat down 5 1/2c to $6.70. MGEX March wheat closes down 1c to $8.11

Rice (Source: CME)
U.S. rice futures end slightly lower as a lack of demand continues to hang over the market. Rice prices retreat after briefly climbing to a fresh two-week high. Large world supplies and weak demand for U.S. rice, both domestically and internationally, hangs over the market. CBOT March rice ends down 4c to $14.34 1/2 per hundredweight.

US soy dips from 4-month high; corn, wheat firm
SINGAPORE, Feb 15 (Reuters) - Chicago soybeans fell as the market took a breather after prices climbed to a four-month high in the last session, boosted by the prospect of more U.S. exports as hot and dry conditions threaten Brazil's crop.
"There is a bit of profit-taking on soybeans, as they were the only ones rallying last night," said Brett Cooper, a senior manager of markets at FCStone Australia.

Ukraine says no plans to limit grain exports
KIEV, Feb 15 (Reuters) - Ukraine, which risks losing a large part of its winter grains due to poor weather conditions, has no immediate plans to curb exports of grain, Agriculture Minister Mykola Prysyazhnyuk said on Wednesday, commenting on market players' concerns.
"There are no plans to limit grain exports," he told reporters.

Collision disrupts grain exports at Brazil port
SAO PAULO, Feb 14 (Reuters) - About a quarter of Brazil's shipments of soy and corn to world markets were disrupted on Tuesday, a day after a dry bulk carrier collided with and damaged a major grain terminal at Santos Port.
Late on Monday, the dry bulk carrier MV Milagro, under the Maltese flag, knocked into the water one of the four grain loaders at the Guaruja Grain Terminals (TGG) complex at Santos, Latin America's largest port, a TGG representative said on Tuesday.

Ship collides with grain loader at Brazil terminal
SAO PAULO, Feb 14 (Reuters) - A soy ship collided with a grain loader of the Guaruja Grains Terminal at Brazil's Santos Port late on Monday temporarily disrupting operations, port officials said Tuesday.
The dry bulk carrier MV Milagro under Maltese flag collided with one of four grain loaders at the grain terminal at the Guaruja Grain Terminal complex, destroying the loader, the press spokeswoman for the Guaruja Grains Terminal said.

Ukraine loses 3 mln ha of 2012 winter crops -AgMin
KIEV, Feb 14 (Reuters) - Ukraine's Farm Ministry said on Tuesday that poor weather during sowing and wintering had damaged up to 3 million hectares of winter crops, which could be reseeded this spring.
"Farms are preparing for the spring sowing and reseeding of 2.5 to 3.0 million hectares of winter crops," the ministry said in a statement.

Western Australia 2011-12 Grain Harvest Exceeds 15 Mln Tons -CBH (Source: CME)
Western Australia state's grain harvest has surpassed 15 million metric tons for the first time, paving the way for a landmark export campaign, Cooperative Bulk Handling Ltd. said. Late grain deliveries have brought the harvest in the crop year ending March 31 to record territory, CBH said. This comes a few weeks after receivals of winter grains--including wheat, barley and canola--eclipsed the 2003-04 record of 14.69 million tons. CBH's Group General Manager of Operations Colin Tutt welcomed the milestone, but said in a statement that "challenging times" will continue in the coming months as the grower cooperative moves the crop to the state's ports for export. Japan and China, the two biggest importers of Western Australian grains last season, will likely remain prominent in the coming export campaign, a CBH spokeswoman said. Saudi Arabia was the third-largest destination in 2010-11, following the recommencement of bulk exports, and CBH has said it plans to build up this market.
Typically, 70% of the Western Australian harvest is wheat, and deliveries to CBH account for 90% of total state production, nearly all of which is exported. Western Australia is the biggest wheat-producing state in Australia.

Wheat Advances in Chicago as Frost May Reduce Ukraine Production, Exports (Source: Bloomberg)
Wheat futures rose for the second time this week on speculation that freezing weather will curb Ukrainian production and exports. Dormant crops in Ukraine, the world’s seventh-largest wheat exporter, endured “extreme cold weather” in the past three weeks, hurting plants that lacked protective snow cover, Telvent DTN said in a report yesterday. Ice at ports and in shipping lanes is slowing deliveries from the country, said Christopher Gadd, an analyst at Macquarie Group Ltd. “The ports are frozen up, and moving grain around right now is a nightmare,” Gadd said by telephone from London. “There are massive issues that are limiting grain exports out of the region. You can’t see selling pressure come back to the wheat complex until you see the weather abate in the Black Sea region.”

India 2011-12 Basmati Rice Exports May Hit Record (Source: CME)
India's exports of premier, aromatic basmati rice are likely to reach a record 2.5 million metric tons in the fiscal year ending March 31, 2012, despite payment problems snagging shipments to Iran, the largest market, a government official and an industry executive said. "Demand has been good from Dubai, Saudi Arabia and Europe," A.K. Gupta, advisor to the state-backed Agricultural and Processed Food Products Export Development Authority, told Dow Jones Newswires. All basmati rice export contracts from India need to be registered with Apeda. India exported 2.2 million tons of basmati rice last fiscal year. Exports in the first 10 months of this year rose 10% to around 2 million tons, another government official, who didn't wish to be named, said. Doubts over export growth surfaced after Iranian buyers started withholding payments due to a sharp slide in the value of the Iranian currency after US sanctions made India's rice far more expensive for them.
The payment system with Iran also became more complicated, virtually depriving Indian shippers of a market that traditionally accounts for more than half of basmati exports. However, a decision by an Indian ministerial panel last week to lower the minimum export price by $200/ton to $700/ton has opened the gateway for exports to other countries, who have negotiated deals in the $700-$800/ton range. "We expect basmati exports to gain momentum the moment a formal order is issued on the [lower] minimum export price," Vijay Setia, president of the All India Rice Exporters Association, said. India is expected to ship out 600,000-700,000 tons under new deals as soon as the order is issued. Basmati supply is abundant in the country this year after a bumper crop, estimated between 3.8 million tons and 4.0 million tons.

U.S. Plains' 4Q Farm Values Jump 25%; Absentee Landlords Sell (Source: CME)
Farmland values in the heart of the U.S. Plains continued to soar at the end of 2011 as absentee landowners increasingly put their farms up for sale, the Federal Reserve Bank of Kansas City said. Farmland values in the region, which includes Kansas, Nebraska, Oklahoma and Colorado, were up 25% in the fourth quarter from a year ago, and climbed 9% during the quarter. Farmers were the main buyers, but outside investor interest in farmland for rental income or capital gains remained high, the Kansas City Fed said. It added that absentee landowners putting their farms up for sale were turning to land auctions as they sought "top-dollar prices." Historically, high crop and livestock prices, which have resulted in strong farmer incomes, have driven the farmland boom across the U.S. over the past year. The gains came despite a severe drought that plagued much of the region, particularly Kansas and Oklahoma, in 2011.
The Kansas City Fed noted that farmers' incomes were volatile due to the drought, and that the drought limited gains in farmland values for nonirrigated land in Oklahoma while driving up the value of irrigated land. Farmland values increased most sharply in Nebraska, where non-irrigated values jumped 37.8% from a year ago. About one-third of bankers in the district expect farmland prices to increase further in 2012, along with the number of sales, the Kansas City Fed said. The stronger farm income improved farm credit conditions generally in the fourth quarter, with the Kansas City Fed noting better loan repayments and fewer loan renewals or extensions.
Farmland values have also soared elsewhere in the U.S. heartland, including in top corn-producing states such as Iowa and Illinois. The rapid gains have prompted some concerns about a potential bubble, but many economists said that a crash in prices is unlikely as crop prices are high and farmers don't have nearly as much debt as they had in the 1980s, when a farmland bubble popped.

EU, US Agree To Mutually Recognize Organic Products (Source: CME)
The European Union and the United States agreed to mutually recognize their certificates for organic products, in a move that will facilitate transatlantic sales in a market worth roughly EUR40 billion, the EU's executive body said. The agreement opens up trade between the U.S. and the EU in a sector which is experiencing growing demand from health-conscious consumers keen to have more naturally produced food. It is also a step forward in the trade relations between the two regions that have clashed repeatedly in the past, arguing over issues ranging from genetically modified produce to the use of hormones in raising livestock. "This partnership will open new markets for American farmers and ranchers, create more opportunities for small businesses, and result in good jobs for Americans who package, ship, and market organic products," U.S. Agriculture Deputy Secretary Kathleen Merrigan said.
Starting June 1, products certified as organic in the EU or the U.S. will be allowed for sale in both regions, the European Commission said in a statement. EU Agriculture Commissioner Dacian Ciolos, Merrigan, and U.S. Trade Representative Chief Agricultural Negotiator Isi Siddiqui signed letters creating the partnership in Nuremberg, Germany, the statement said. The commission explained that all products traded under the new agreement had to be shipped with a certificate that will show details such as the production location, a guarantee that prohibited substances and methods weren't used, and will allow a tracking of the good.

Iowa Visit To Spotlight Perks Of Chinese Trade (Source: CME)
Chinese Vice President Xi Jinping's visit to Iowa this week is designed in large part to make a point to U.S. critics of Beijing's economic policies: China is good for the U.S. farm belt. Mr. Xi was scheduled to arrive in Iowa during a U.S. tour to burnish his credentials as a statesman ahead of his expected selection as China's top leader this year. The stop in farm country will highlight Mr. Xi's personal connection with a part of the U.S. he first visited 27 years ago. But it is also intended to draw a contrast with the bashing Beijing usually gets in Washington for the big U.S. trade deficit with China, by highlighting how China's growing dependence on America to feed its swelling middle-class population is a big reason that the U.S. farm belt is experiencing an economic boom. China was the biggest foreign buyer of U.S. agricultural goods in 2011, and much of what it bought were commodities big in Iowa, such as soybeans, pork and corn.
Grain farmers in Iowa have enjoyed record returns in the past two years, and the state has the nation's sixth-lowest unemployment rate, at 5.6%. That makes the Hawkeye state welcoming terrain. U.S. farmers "know the Chinese market is growing, and they can make better money," said Yang Guoqiang, the Chinese consul general in Chicago. "I think the whole Midwest has different feelings from what D.C. is talking about." Mr. Xi's first stop in Iowa is the small city of Muscatine, to reconnect with families who hosted him during a visit to the U.S. in 1985, when he was a regional Communist Party official making what is believed to be his first trip outside China. The afternoon reunion over tea will last just an hour. The Chinese leader will spend most of his two days in Iowa at agriculture events. He plans to visit a farm about 20 miles outside Des Moines, attend a symposium on U.S.-China farm ties, and attend a gala dinner sponsored by Iowa's trade associations for pork, corn and soybeans.
He departs Thursday for Los Angeles. Beijing is often attacked by U.S. politicians for the trade deficit with China, which grew by 8% last year to $295.5 billion. Iowa is the nation's biggest grower of the top U.S. export to China: soybeans for making cooking oil and fattening hogs and chickens. It bought $10.5 billion worth in 2011, four times as much as in 2006 and far surpassing any other category, including aircraft, cars and semiconductors.  Iowa Gov. Terry Branstad said the only visitors to Iowa that rival Mr. Xi in importance are Soviet Premier Nikita Khrushchev in 1959 and Pope John Paul II in 1979. Still, it is unclear whether China's boost to U.S. farmers wins it any political goodwill. While the USDA calculates that the $20 billion China spent importing U.S. agricultural goods in 2011 supported an estimated 160,000 domestic jobs, Midwest grain and hog farms are so highly automated that they aren't a big source of job growth.
Both of Iowa's senators, Republican Charles Grassley and Democrat Tom Harkin, voted in favor of a bill aimed at pressuring China to appreciate its currency that passed the Senate in October over strong objections from Beijing. The measure hasn't passed the House. Mr. Grassley, who this month called the country "Red China" in a tweet criticizing Beijing's stance on Syria, often targets the Chinese government's polices on human rights and other issues. "I am going to say what has to be said regardless of where the chips fall," he said in an interview.

Uganda's 2012 sugar production seen up 26 pct
KAMPALA, Feb 15 (Reuters) - Uganda's 2012 raw sugar production is forecast to rise 26 percent, boosted by expected good weather and higher cane supplies from outgrowers, an industry official said on Wednesday.  
Wilberforce Mubiru, secretariat manager at Uganda Sugar Cane Technologists Association (USCTA), told Reuters the east African country would produce about 327,075 tonnes of sugar, up from last year's 259,413 tonnes.

Rains hamper key Colombian coffee flowering period
BOGOTA, Feb 14 (Reuters) - Colombia is likely to see a worse-than-expected main coffee harvest in late 2012 as heavy rains limit sunlight and damage flowering in key producing provinces, farmers and exporters said on Tuesday.
Flowering in the first few months of the year is critical for when Colombia harvests its main crop from September to December in six of its eastern and central provinces, which account for more than 61 percent of total national output.

Brazil sugar output minimal in interharvest -Unica
BRASILIA, Feb 14 (Reuters) - Brazil's center south cane crushing and sugar output was minimal in the last fortnight with only a handful of mills still crushing the mostly finished 2011/12 harvest, data from cane industry association Unica showed on Tuesday.
The total amount of sugar cane harvested between April 1 last year, when the season began, and Feb. 1 was down 11.4 percent to 493.5 million tonnes compared with the crush of the entire 2010/11 season.

Russia customs union raw sugar duty $140/T-commission
MOSCOW, Feb 14 (Reuters) - The customs union of Russia, Belarus and Kazakhstan has set its sugar import tariff at $140 per tonne from March 2012, the customs union web site said.
This tariff will be applied until the end of July 2012, it added.

Russia sugar from beet 5 mln tonnes vs 2.7 mln yr ago
MOSCOW, Feb 14 (Reuters) - Russia had refined 5.00 million tonnes of white sugar from beet by Feb. 13 from the start of the season in August, buoyed by a strong domestic beet crop after a 2010 drought.      
Russia expects to produce up to 5.2 million tonnes of sugar from beet this year.  
 
Indonesia plans 240,000 T raw sugar imports in 2012
JAKARTA, Feb 14 (Reuters) - Indonesia, Southeast Asia's largest sugar consumer, plans to import 240,000 tonnes of raws this year to make up for a white sugar shortage before the domestic milling season starts in May, the agriculture minister said on Tuesday.  
Indonesia imports sugar because domestic production cannot catch up with demand, each year buying around 2 million tonnes of raw sugar, or half of its consumption, mostly from Thailand.

Oil price pain may curb China imports
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
SINGAPORE, Feb 15 (Reuters) - The recent strength in China's oil imports may be about to fade thanks to an 18 percent gain in Brent crude prices since October.
China's crude imports have shown resilience in the face of slowing economic growth in the world's second biggest oil consumer, as well as fears of renewed recession in Europe and a slow recovery in the United States.

Global ship fuel rules may bring diesel surprise
--Robert Campbell is a Reuters market analyst. The views expressed are his own--
NEW YORK, Feb 14 - A global shift to lower sulfur ship fuels from Jan. 1 appears to be giving an extra boost to demand for diesel fuel and the situation could worsen from August once tighter restrictions in North American waters take effect.
From Jan. 1 the International Maritime Organization has mandated a maximum 3.5 percent sulfur content in most marine bunker fuels, down from a previous 4.5 percent maximum.
 
U.S. crude futures start to look stretched
--John Kemp is a Reuters market analyst. The views expressed are his own--
LONDON, Feb 14 (Reuters) - Is the oil market heading for a repeat of last year: a big run up in prices during the first few months followed by a sudden crash when the inflows of investment money dry up and early entrants try to realise their gains?
There are eerie parallels. Like last year, strongly accommodative central bank policy from the Federal Reserve and signs of recovering economic activity in North America and Western Europe are coupling with physical supply disruptions to encourage a more bullish outlook for oil.

Oil at $118, supply worry trumps Europe gloom
LONDON, Feb 15 (Reuters) - Oil rose to $118 a barrel as real and threatened supply disruptions outweighed concern about the health of the global economy and Greece's struggle to avoid bankruptcy.
"The oil market continues to be caught between a deterioration in the global economy and supply issues, including actual supply disruptions in Sudan," said Jeremy Friesen, a commodity strategist at Societe Generale.

S.Korea's January LNG imports drop 41 pct yr/yr
SEOUL, Feb 15 (Reuters) - South Korea's imports of liquefied natural gas (LNG) fell 41 percent in January from a year earlier after building inventory via robust imports last December for winter demand, customs data showed on Wednesday.
The world's second-largest LNG buyer after Japan imported 2.89 million tonnes of LNG last month, compared with 4.93 million tonnes a year earlier, Korea Customs Service data showed.

Petronas restarts Malacca refinery after maintenance - trade
SINGAPORE, Feb 15 (Reuters) - Malaysia's national oil firm Petronas has resumed operations at its joint-venture refinery in Malacca after a brief planned maintenance last week, trade sources said on Wednesday.
The 140,000 barrels-per-day (bpd) refinery was shut for four days for a change of mechanical parts, they said.

Oil Trades Near Highest in Five Weeks on Report of Iran Crude Export Cut (Source: Bloomberg)
Oil traded near a five-week high in New York after reports that Iran halted shipments to Europe and crude inventories declined for the first time in four weeks in the U.S., the world’s biggest consumer of the commodity. Futures were little changed after climbing 1.1 percent yesterday. Iran stopped crude exports to France and the Netherlands and threatened to end shipments to four other European countries, state-run Mehr news agency reported, citing an unidentified official at the National Iranian Oil Co. U.S. stockpiles fell 171,000 barrels last week, data from the Energy Information Administration showed. They were projected to rise 1.5 million barrels, according to a Bloomberg News survey. “The markets is certainly watching what’s happening in Iran but I don’t think it’s willing to build in that escalation premium yet,” said David Lennox, an analyst at Fat Prophets in Sydney. “The U.S. inventory decline has a fairly short-term impact on prices.”

20120216 0936 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
U.S. soy futures rally, ending higher on Brazil crop worries and Chinese export demand. Fresh export sales, the third straight day of sales, buoyed the market and added to optimism stemming from a Chinese delegation's U.S. visit, where another export announcement was expected. Declining crop prospects for Brazil are behind the improved outlook for U.S. business, traders say. Prices surge to a four-month high, though gains were trimmed as corn and wheat prices retreated. Soybeans' recent gains could mean more U.S. acreage this spring, traders add. CBOT March soybeans end up 6c to $12.61 per bushel.

Soybean Meal/Oil (Source: CME)
March soyoil ended up .33c to 53.35 cents/lb, and March soybean meal gained $2.70 to $3.328 per short ton.

China Signs $4.3B of Soybean Deals With U.S. (Source: Bloomberg)
China, the world’s biggest soybean importer and consumer, signed agreements in Iowa to purchase 8.62 million metric tons of the oilseed from U.S. suppliers in a deal valued at $4.3 billion. Soybeans will be supplied by companies including Cargill Inc., Archer Daniels Midland Co. (ADM), Bunge Ltd. (BG) and CHS Inc., Iowa Soybeans Association Chief Executive Office Kirk Leeds said today in Des Moines, Iowa, during a U.S.-China trade cooperation conference. Iowa Governor Terry Branstad is hosting a two-day visit by Chinese Vice President Xi Jinping, 58, who is slated to become president in March 2013. Iowa is the biggest U.S. producer of corn, soybeans, hogs and eggs. “It is phenomenally important to have Vice President Xi here because it says that Iowa is an important place to do business,” Leeds said yesterday in an interview. “These agreements are the direct result of activities by U.S. soybean groups in China since 1981 to promote soybean-meal demand in livestock, chicken and aquaculture feed.”
China became the largest buyer of U.S. farm products in 2010, and last year boosted purchases to $22.17 billion, U.S. Department of Agriculture data show. The nation purchased 20.6 million metric tons of soybeans from the U.S. last year, or 60 percent of the total shipped overseas. China probably will increase purchases from all suppliers by 62 percent in the next decade to 90 million tons from a projected 55.5 million this year, the USDA said Feb. 13.

Palm oil eases on fears of slowing demand
SINGAPORE, Feb 15 (Reuters) - Malaysian crude palm oil futures eased after exceeding one-month highs in the previous session on prospects of slowing demand, but losses were limited by weather concerns in South America.
"There's a slight consolidation after yesterday's rise," said a dealer with a foreign commodities brokerage in Kuala Lumpur.

India's Jan vegoil imports down 8.5 pct y/y - trade body
Feb 14 (Reuters) - India imported 659,979 tonnes of vegetable oils in January, down 8.5 percent from a year earlier, data released by a leading trade body showed on Tuesday, lower than the average forecast in a Reuters survey.
Palm oil imports -- the bulk of India's edible oil purchases - eased 2.6 percent in January to 511,043 tonnes, data released by the Solvent Extractors' Association of India (SEA) showed.


Plantation: CPO prices look strong but Indonesian export tax a dampener
Crude palm oil (CPO) prices will generally continue their good run this year although the Indonesian government’s decision to reduce export tax on refined palm productions will weigh heavily on Malaysian palm oil production. Malaysian Palm Oil Council deputy CEO Dr Kalyana Sundram said that prices are looking firm said he feel prices will hold and should generally be a good year for 2012. (Financial Daily)

The price of crude palm oil (CPO) will fluctuate but is not likely to drop below RM3,000 per tonne as demand for CPO will stay robust due to rising consumption, said Malaysian Palm Oil Council (MPOC) deputy CEO Dr Kalyana Sundram. He said the demand for palm oil would likely outstrip supply as population rose, adding that the average price of RM3,000 was also buoyed by favourable weather which impacted production positively. (StarBiz)