Thursday, February 23, 2012

20120228 1813 FCPO EOD Daily Chart Study.

FCPO closed : 3272, changed : +22 points, volume : lower.
Bollinger band reading : pullback correction upside biased.
MACD Histrogram : resumed rising, buyer in control.
Support : 3270, 3250, 3200, 3150 level.
Resistance : 3300, 3350, 3420, 3450 level.
Comment :
FCPO closed recorded gains with slower volume done. Soy oil price trading little lower after overnight closed recorded small gain while crude oil price resume testing higher resistance level registering gain.
FCPO price trading within 27 points range bound market through out the day with last minutes rushed upward to closed near the high after U.S. Dollar continue to be weaker.
Technical study remained suggesting a pullback correction 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.

20120223 1741 FKLI EOD Daily Chart Study.

FKLI closed : 1557.5, changed : +0.5 points, volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : falling, buyer reducing position.
Support : 1550, 1540, 1530, 1515 level.
Resistance : 1565, 1570, 1580, 1590 level.
Comment :
FKLI closed 1 tick higher with lesser volume exchanged doing about 1 point premium compare to cash market that closed little lower. Overnight U.S. markets closed little lower and today Asia markets ended mostly lower while European markets currently registering small gain.
Global markets traded mixed after weaker Yen, China lower economic growth for this year and improved German business confidence development.
Technical analysis remained suggesting a correction range bound upside biased market development with MACD indicator having negative crossed down.
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.

20120223 1710 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.

20120223 1630 Global Market & Commodities Related News.

Markets ease as focus moves to growth, oil prices
TOKYO, Feb 23 (Reuters) - Asian shares and the euro fell on concerns about global growth driven by higher oil prices and data showing the euro zone may slip into recession, fanning fresh worries about Greece's debt restructuring challenges.  
"Now that the Greece's second rescue package has been decided and priced into the market, markets are already looking for the next problem," said Yoshihiko Tabei, general manager of capital markets at Kazaka Securities.

FOREX-Yen edges up but stuck near 7-mth low vs dollar
SINGAPORE, Feb 23 (Reuters) - The yen edged up versus the dollar on Thursday but still hovered close to a 7-month low, with the dollar supported by demand from Japanese importers.
The greenback took a breather from its recent rally against the Japanese currency, having climbed 5.4 percent from lows hit in early February.

U.S. wheat, corn, soybean lower ahead of USDA data
NEW DELHI, Feb 23 (Reuters) - Chicago wheat, corn and soybeans were lower, in line with a broader fall in global markets driven by concerns that Greece's debt crisis may plunge the euro zone into recession, but the fall was muted as the market awaits key USDA data.
"At the moment, the Chicago grains market is influenced by the outside market which has got some bearish bias," said Luke Matthews, a commodity strategist with Commonwealth Bank of Australia in Sydney.

Ukraine 2012/13 corn exports seen up 15-20 pct over this yr
SINGAPORE, Feb 23 (Reuters) - Corn exports from Ukraine in 2012/13 are expected to rise about 15 to 20 percent to between 14 million and 15 million tonnes, an official of the State Food and Grain Corp of Ukraine said on Thursday.
By the end of September, the country's corn stocks are seen at 4.7 million tonnes, up from 1.2 million tonnes a year ago, the state-run firm's Andrew Druzyaka told reporters.
 
Paraguay could triple soyoil output, exports in 2013
BUENOS AIRES, Feb 22 (Reuters) - Paraguay, the world's fourth-biggest soybean supplier, could triple its production and exports of soyoil next year when two large processing plants come on line, industry analysts said on Wednesday.
The South American country, which currently exports most of its soy as raw beans, could crush up to 4 million tonnes in 2013 when Archer Daniels Midland , Bunge  and Louis Dreyfus are set to start operating their factories.

Ukraine denies curbing wheat exports
KIEV, Feb 22 (Reuters) - Ukraine's government said on Wednesday it had not urged grain traders to limit wheat exports, denying local media reports it had done so, and it forecast that there would be no shortages of grain on the domestic market.
"There are no recommendations to limit wheat exports," Agriculture Minister Mykola Prysyazhnyuk told reporters.

Ukraine sees grain harvest at 50 mln T - AgMin
KIEV, Feb 22 (Reuters) - Ukraine will harvest 42 to 50 million tonnes of grain this year, including 15-16 million tonnes of wheat, Agriculture Minister Mykola Prysyazhnyuk said on Wednesday, adding that this would be enough to meet domestic demand.
Ukraine harvested a record of 56.7 million tonnes of grain in 2011, including 22.3 million tonnes of wheat. But this year's winter crops have been hit by drought and extreme cold.

Indonesia to import up to 2 mln T rice in 2012
JAKARTA, Feb 22 (Reuters) - Indonesia plans to import up to 2 million tonnes of rice this year to ensure food security, an unexpected move that could soak up regional stockpiles and support prices.
The country had aimed to avoid rice imports this year after surprising markets by buying 1.9 million tonnes in 2011, but output from the world's third largest grower is again falling short of forecasts, threatening its ambition to become self-sufficient in rice.

Russia to maintain grain exports to Iran - ministry official
SINGAPORE, Feb 22 (Reuters) - Russian traders will export grain to Iran until Russia decides whether to ban sales in line with U.S. and European sanctions on Iran, an Agriculture Ministry official said on Wednesday.
"Until the Russian government makes a decision to ban grain exports to Iran, exports will continue," Krestyaninov Artem, a deputy director at the ministry, told reporters on the sidelines of a grains conference in Singapore.


Brent crude holds near $123 as Iran offsets slowdown concerns
SINGAPORE, Feb 23 (Reuters) - Brent crude held steady, near a nine-month high of about $123, as supply worries from heightened tensions between Iran and the West offset concerns that a slowdown in the global economy could curb oil demand.
"Any further news of escalating tensions in Iran or other Middle East or African countries will likely increase the risk premium although our short-term view could be that prices could dip today on profit-taking as prices reach overbought territory," said Natalie Robertson, a commodity strategist at ANZ bank.

LME copper slips for 2nd day, economic woes weigh
SINGAPORE, Feb 23 (Reuters) - London copper edged lower for a second day as worries over a floundering euro zone economy and a weak manufacturing sector in top copper consumer China made it difficult for investors to stretch this year's rally.
"The market got very excited about the Greece bailout and then we started to see a reassessment of Greece, reassessment of Europe and a general reassesment of risk," said Nick Trevethan, senior commodities strategist at Australia and New Zealand Bank.

Gold pauses after rally; monetary easing hopes support
SINGAPORE, Feb 23 (Reuters) - Spot gold edged lower , taking a breather after hitting a three-month high in the previous session, while sentiment remains supported on hopes of further monetary easing after sluggish economic data from the euro zone and China.
"There is always a case to be made for gold, as long as the central banks keep taking new easing measures or keep indicating they will take more new measures down the road," said a Singapore-based trader.

China's imports; seeing beyond the numbers
Andy Home is a Reuters columnist. The opinions expressed are his own)
LONDON, Feb 22 (Reuters) - China and the U.S. are the twin sources of optimism for base metals bulls right now. If the former can achieve its much-vaunted "soft landing" and the latter can continue on its path of economic recovery, the slow-motion disaster that is Europe can be put out of collective mind.  
So it's a little surprising there hasn't been more enthusiasm about China's January trade figures released on Tuesday.  

Japan steel body urges restart of nuclear reactors
TOKYO, Feb 22 (Reuters) - Japan's steelmakers, the nation's biggest users of electricity, urged the early restart of nuclear power plants on Wednesday, fearing that potential power cuts and more costly electricity  will further squeeze a sector reeling from the strong yen.
Big businesses have reacted furiously to plans by Tokyo Electric Power Co , or Tepco, to raise charges but had refrained from calling for the restart of reactors, wary of an angry response from a public worried about nuclear safety due to the Fukushima radiation crisis.

Lynas faces claim against Malaysia rare earths plant license
MELBOURNE, Feb 23 (Reuters) - Opponents of Australian rare earths miner Lynas Corp's  refinery in Malaysia have asked a court to delay start-up of its $200 million plant and review the government's decision to give it a temporary operating license.
Lynas said on Thursday it would fight the claims, as it aims to open the plant, which is nearly complete, by June.

METALS-LME copper slips for 2nd day, economic woes weigh
SINGAPORE, Feb 23 (Reuters) - London copper edged lower for a second day on Thursday as worries over a floundering euro zone economy and a weak manufacturing sector in top copper consumer China made it difficult for investors to stretch this year's rally.
Copper's weakness was echoed in other commodities and financial markets, with Asian equities and the euro slipping as global economic concerns including rising oil prices cut into a rally earlier in the week after euro zone finance ministers signed off on Greece's rescue package.    

PRECIOUS-Gold pauses after rally; monetary easing hopes support
SINGAPORE, Feb 23 (Reuters) - Spot gold edged lower on Thursday, taking a breather after hitting a three-month high in the previous session, while sentiment remains supported on hopes of further monetary easing after sluggish economic data from the euro zone and China.
Data showed unexpectedly weak activity in the euro zone, while China's manufacturing sector contracted for the fourth straight month, fueling anticipations that central banks will further ease monetary policy to promote economic growth.

20120223 1204 Global Market & Commodities Related News.

GLOBAL MARKETS-Markets ease, focus moves to growth, oil
TOKYO, Feb 23 (Reuters) - Asian shares and the euro fell on Thursday on concerns over a slowdown in the global economy, including higher oil prices and data showing the euro zone may be sliding toward recession, fanning fresh worries about Greece.
"Despite this year's impressive rally in equity markets, sector performance shows signs that higher energy prices could slow the market advance and may portend some loss of economic momentum," they said.

COMMODITIES-Brent oil at 9-mth highs; gold at 3-mth peaks
NEW YORK, Feb 22 (Reuters) - London's Brent crude oil hit nine-month highs on Wednesday on worries over Iran's growing confrontation with the West, while gold prices rose to three-months peaks as technical charts pointed to a bull run.
"We've got a tug of war here between Iran tensions and slowing global economic growth," said Mark Waggoner, president at Excel Futures, an oil and commodities broker in Bend, Oregon.

Brent oil rises to 9-month high on Iran tension
NEW YORK, Feb 22 (Reuters) - Brent rose to a nine-month high on Wednesday on heightened tensions between the West and Iran, after U.N. inspectors sent to visit the country's nuclear installations declared their mission a failure.  
"We've got a tug of war here between Iran tensions and slowing global economic growth," said Mark Waggoner, president of Excel Futures in Bend, Oregon.

Japan cuts in Iran crude imports could be over 20 pct-media
TOKYO, Feb 23 (Reuters) - Japan is in final talks with Washington on an agreement on cuts in Iranian crude oil imports that could amount to more than 20 percent a year, the Nikkei business daily reported on Thursday, as Tokyo seeks to win waivers from U.S. sanctions.
Japan and the United States will reach a basic agreement by the end of February, sparing Japan's three main banks that currently handle payments to Iran from penalties, the Washington-datelined  report said, without citing sources.

US natural gas futures end higher ahead of stocks data
NEW YORK, Feb 22 (Reuters) - U.S. natural gas futures ended higher on Wednesday after early selling, propped up by expectations for a supportive weekly inventory report on Thursday and recent drilling declines despite still-high supplies and another week of fairly mild winter weather.
"The weather is getting milder and spring is right around the corner and even with a modestly strong withdrawal from inventory, ... (storage is) on a path to set an all-time record high level at the end of the winter heating season," Energy Management Institute's Dominick Chirichella said in a report.

Euro Coal-Prices move up slightly with strong oil
LONDON, Feb 22 (Reuters) - Prompt physical coal prices rose by around 50 cents on Wednesday in line with oil's gains but aside from a few Calendar 2013 trades, activity was muted.
"There's still far too much coal, in Europe especially and this rise in prices can't be justified by fundamentals, which are weak," one European trader said.

20120223 1002 Local & Global Economic Related News.

Economy: Malaysia’s inflation slows to 1-year low in Jan
Malaysia’s inflation slowed to a one-year low in Jan, giving the central bank room to extend a pause in monetary policy tightening as the faltering global economy threatens growth. The Consumer Price Index (CPI) for Jan 2012 rose by 2.7% to 104.5 compared with 101.8 in the same month last year. The Department Of Statistics Malaysia said the CPI increased by 0.3 per cent when compared with Dec 2011. (Business Times)

Economy: BNM's reserves at RM425.7bn
Bank Negara Malaysia's (BNM) international reserves amounted to RM425.7bn (equivalent to US$134.4bn) as at Feb 15, 2012.  The central bank said that the reserves position is sufficient to finance 9.3 months of retained imports and is 4.1x the short-term external debt. (Bernama)

US: Distressed properties help boost home sales
Sales of previously owned US homes rose in Jan to the highest level since May 2010 as investors took advantage of lower prices to buy distressed properties. Purchases climbed 4.3% to a 4.57m annual rate, less than forecast, from a revised 4.38m pace in Dec that was slower than previously estimated, a report from the National Association of Realtors showed. Distressed properties made up the largest portion of all purchases since Apr. (Bloomberg)


US: Construction jobs rebound on remodeling

Construction hiring is picking up as Americans invest in renovating their homes amid signs that the worst of the housing-market declines may be over. The number of people working in residential remodeling grew 5.8% in Dec to 250,700 from a year earlier, based on preliminary data released Feb 3 by the Bureau of Labor Statistics. This was the highest growth for these jobs -- which account for about 5% of construction employment -- since Dec 2006, before the housing bubble burst. (Bloomberg)

EU: ECB preparing to close liquidity floodgates
The ECB wants its second offer of cheap ultra-long funds next week to be its last, putting the onus back on governments to secure the euro zone's longer-term future. Powerful members of the central bank's 23-man governing council are privately hoping demand at the Feb 29 auction will fall well short of the 1trn euros (837.8bn pounds) some expect, backing their view that it should be the last. Central bank sources say they are worried that banks will become too reliant on ECB funds, removing the incentive to restart lending between themselves. (Reuters)

EU: Manufacturing and services sector contract
European services and manufacturing output unexpectedly shrank in Feb as the euro-area economy struggled to rebound from a contraction in the fourth quarter. A euro-area composite index based on a survey of purchasing managers in both industries dropped to 49.7 from 50.4 in Jan, London-based Markit Economics said in an initial estimate today. Economists had forecast a reading of 50.5, according to the median of 16 estimates in a Bloomberg News survey. A reading below 50 indicates contraction. (Bloomberg)


Euro: Weak PMI fans recession fears
Business activity across the euro area contracted unexpectedly this month, according to a Purchasing Managers Index (PMI) released Wednesday, raising doubts about the 17-nation region’s ability to avoid a recession that could further complicate the sovereign debt crisis. The preliminary composite PMI fell to 49.7 in February from 50.4 last month. A reading of less than 50 signals a contraction in activity. (Marketwatch)

France: Inflation holds near 3-year high on energy, tax rises
France’s inflation rate held near a three-year high in January as President Nicolas Sarkozy’s government increased sales tax rates on some goods and services and energy prices climbed. Consumer prices rose 2.6% from a year earlier, compared with increases of 2.7% in November and December. (Bloomberg)


UK: BOE’s Bean says Greek deal doesn’t end disorderly outcome risk
Bank of England Deputy Governor Charlie Bean said agreement on a second bailout for Greece may not be enough to end the debt crisis and countries in the euro- area periphery must reduce debt and improve competitiveness. He said while the agreement between the Greek government and the euro-area authorities is certainly welcomed, there still remains a possibility that events could unfold in a disorderly and damaging fashion at some stage in the future. The deputy governor said a disorderly outcome in the euro area would hit the UK.’s export and financial links, reduce confidence and lead companies and consumers to hunker down and postpone spending. (Bloomberg)

UK: BOE splits as Posen pushes with miles for larger boost to asset purchases
Bank of England policy makers Adam Posen and David Miles were defeated in their bid to raise stimulus by 75bn pounds ($118bn) as the majority argued such a move might provoke alarm on the economy. 7 of the 9-member Monetary Policy Committee, including Governor Mervyn King, voted to raise the asset- purchase target by 50bn pounds to 325bn pounds, according to minutes of the Feb. 8-9 meeting published today in London. They argued a larger increase risked sending a signal that the committee thought the economic situation was weaker than it was. (Bloomberg)

Greece: Crisis raises new fears over credit-default swaps
Greece’s debt restructuring is dragging credit-default swaps back into the spotlight. To get maximum debt relief, Greece needs to have as many qualifying bonds as possible join the restructuring. Toward that end, Greece may insert something called a collective action clause into bonds issued under Greek law. If the clause is inserted and then invoked, all bondholders will be forced to take a haircut, making the exchange involuntary. That would set off the default swaps. The official decision on whether a default swap has been activated is made by the International Swaps and Derivatives Association, an industry body. The Greek government said Tuesday that it was sending a bill to Parliament that, if passed, would insert the clause into bonds issued under Greek law, which make up more than 90% of the country’s bonds. (New York Times)

Greece: Fitch slash ratings, indicates near-term default highly likely
Fitch slashed its rating for Greek sovereign debt to “C” from “CCC,” indicating that default is highly likely in the near term. The downgrade comes just after the country secured a second bailout from its creditors and the subsequent announcement by the Greek government that private investors holding Greek debt would be forced to accept a debt swap, in which they exchange their bonds for lower-value debt. In Fitch's opinion, the exchange, if completed, would constitute a 'distressed debt exchange' (DDE) in line with its criteria and consequently Tuesday's announcements set in motion the agency's process for reviewing Greece's issuer and debt securities ratings. Fitch said it would review its stance on Greece again once the debt swap had been completed. (Reuters)

China: Manufacturing data show risk of deeper slowdown on exports
China’s manufacturing may shrink for a fourth month in Feb, indicating the world’s secondbiggest economy remains vulnerable to a deeper slowdown as Europe’s crisis caps exports and the housing market cools. The preliminary 49.7 reading of an index from HSBC Holdings Plc (HSBA) and Markit Economics today compared with a final 48.8 in Jan. A number below 50 points to a contraction. Jan and Feb economic data are distorted by a weeklong holiday. (Bloomberg)


Taiwan: 4Q GDP shrinks on quarter, government cuts 2012 GDP forecast
Taiwan's government lowered its economic growth forecast for this year, the second time in a month, citing the global slowdown and fragile consumer sentiment, after confirming the island had slipped into a technical recession in the fourth quarter of last year. It now expects GDP to grow 3.85% this year, less than its previous estimate of 3.91%. For the three months ended December, Taiwan's GDP fell 0.15% from the previous quarter. (Bloomberg)

Australia: Wage growth quickens as resource boom benefits workers
Wages in Australia accelerated last quarter at the fastest pace in a year as workers benefited from the nation’s resource bonanza. The wage price index, which measures hourly pay rates excluding bonuses, rose 1% in the final three months of 2011 from the prior quarter, when it advanced 0.7%. (Bloomberg)

20120223 1001 Malaysia Corporate Related News.

AirAsia: 4Q net profit down 56% to RM135m on higher fuel costs
AirAsia’s earnings fell 56.3% to RM135.7m in 4QFY11 when compared with RM311.1m y-o-y as it was impacted by aircraft fuel expenses, which rose to RM475.1m from RM292.4m y-o-y. In 4Q FY2011, it recorded foreign exchange losses of RM137.4m compared with forex gain of RM44.3m y-o-y. Revenue rose 9.3% to RM1.3bn from RM1.2bn. EPS were 4.90 sen compared with 11.30 sen. The company attributed the revenue growth to a 9% and 4% growth in passenger volume and average fare. Ancillary income per passenger year-on-year fell by 19% to RM40 from RM49 as ancillary income from AirAsia Go is no longer included. The seat load factor was 82%, the same as in the same period last year. For the FY2011, its net profit fell 46.8% to RM564.1m from RM1.06bn in FY2010. Revenue showed a 13.3% increase to RM4.473bn from RM3.984bn. (Financial Daily)

Felda: To set up SPV to ensure settlers benefit from proposed listing
Felda has proposed to set up a special-purpose vehicle (SPV) to ensure the settlers benefit directly from Felda Global Ventures Holdings's (FGVH) proposed listing and all future profits from the listed business, replacing Koperasi Permodalan Felda's (KPF) initial proposed role. KPF has approximately 220,000 members, of which 112,635 are Felda settlers and the rest employees and children of settlers. Felda chairman, Tan Sri Mohd Isa Abdul Samad, said the action by 8 Felda settlers to block KPF's participation in FGVH's proposed listing with interim injunction barring any transfer of shares to FGVH, has blocked the participation of other KPF members. (Bernama)

MAHB: Call for second tender for KLIA2 commercial outlets
MAHB will be calling for a second tender briefing for KLIA2 involving 39 lots comprising retail, F&B and services categories on Feb 29 and Mac 6 respectively, at the Pan Pacific Hotel KLIA. Tender documents can be purchased from Feb 29-March 27. The tender submission deadline for the lots is 3.00pm on Apr 3. MAHB senior general manager, Commercial Services, Faizah Khairuddin said the concessionaires for 225 lots at the KLIA2 would be announced by Jul this year. She added that everything has to be ready for  operations by April 2013. Faizah said there would be 3 phases of the tender briefing, with the first having involved 27 outlets. KLIA2 has a total retail space of 35,200 sq m on offer. (StarBiz)

MISC: Profit plunges on provisions
MISC  recorded a staggering loss of RM1.74bn for its 3Q  FY2012, a stark contrast to the RM1.38bn net profit in the previous corresponding quarter. Revenue fell to RM2.87bn from RM3.04bn previously. It said the loss for the quarter was due to recognition of one-off provisions totalling RM1.45bn as part of the group’s planned exit from the liner business. (StarBiz)

IJM Plantations: Higher 3Q FY2012 net profit
For 3Q FY2012, IJM Plantations’ net profit grew 22% to RM53.9m from RM44.1m. Revenue fell 8.7% to RM146.4m due to lower sales volume of CPO and palm kernel oil. EPS came in at 6.72 sen versus 5.5 sen a year ago. It said the average realized CPO price was RM2,965 per tonne, an increase from RM2,914 per tonne in the corresponding quarter of the preceding year. However, the average price of palm kernel oil decreased to RM3,488 per tonne from RM4,728 per tonne. (Financial Daily)

KL Kepong: 1Q FY2012 earnings up 12.1% to RM340.98m, plantations boost
KL Kepong recorded a 12.1% increase in earnings to RM340.98m in 1Q FY2012 boosted mainly by its plantation business, when compared with RM304.18m a year ago. Its revenue increased by 20.6% to RM2.923bn from RM2.423bn a year ago. Its EPS were 32.02 sen compared with 28.56 sen. Group's pre-tax profit rose 18.1% to RM463.20m from RM392.28m a year ago. Plantations profit climbed 24.5% to RM391.7m on the back of higher revenue of RM1.31bn (1Q FY2011: RM1.08bn). The profit was boosted by higher selling prices for crude palm oil and rubber, higher fresh fruit bunches production, improved contribution from refinery operations with better margins. (Financial Daily)

Proton: Morrocan firm keen to assemble its cars
Former Prime Minister Tun Dr Mahathir Mohamad said a  Moroccan company, YNNA Holdings, had expressed its keenness to assemble and distribute Proton cars in that country. He said YNNA Holdings is among the biggest companies in Morocco with a varied business network, including those in the hotel, construction and supermarket sectors. However, he added that at the moment, the new owners have not yet taken over Proton, so, no major decision can be made.  (Business Times)

IGB: Upbeat on G Residence take-up
IGB Corp expects its strategically-located G Residence condominiums to sell out by the end of the year.  Jointly developed with SHL Consolidated Bhd on a 70:30 basis, G Residence is scheduled to be completed by Feb 2015. a common garden. According to  IGB head of property development Teh Boon Ghee, 80% of G Residence have been sold out. Priced at an average of RM650 per sq ft, the condominiums are sold between at RM610,000 and RM1 million per unit. He added that all the units in Block A are sold out with only 40% of the units in Block B still remaining. (Business Times)

Perisai: FY2011 net profit doubles to RM21.30m
Perisai Petroleum Teknologi’s net profits soared 106.8% to RM21.28m for FY2011 from RM10.25m a year ago, boosted by profit contributed by the Intan Group, which it acquired in Aug last year. Its revenue was up 9.6% to RM82.41m from RM75.21m a year ago. For 4Q FY2011, its earnings increased 62.3% to RM11.21m from RM6.93m. Its revenue rose 38.1% to RM27.91m the quarter from RM20.21m a year ago. EPS were 1.49 sen compared to 1.05 sen last year. Perisai Petroleum said its high profit was also attributed to lower vessel expenses, a recognition of gain as a result of the acquisition of the Intan Group and a reversal of provision for doubtful debts on the group's borrowings. The group is confident it will be able to record stronger results moving forward in light of positive prospects in the oil and gas industry as well as better contributions from its 51% acquisition of the Intan Group and its mobile offshore production unit, Garuda Energy. (Financial Daily)

CB Industrial Product: May pay out special dividend
CB Industrial Product Holdings is considering paying a special dividend following the disposal of two oil palm plantations in Malaysia. However, MD Lim Chai Beng said the company has not decided on the amount and declaration date of the dividend yet. The disposal of the oil palm estates is expected to be completed in 2Q 2012. (Financial Daily)

Mithril: To become construction firm after revamp
Mithril is expected to complete its restructuring by 3Q 2012, after which its listing status will be transferred to a new company. The result is that  Mithril will become a construction counter. Mithril will hold its EGM on Friday to obtain shareholder approval for the proposed disposal of 29 parcels of commercial office space, and an office building in Sabah for RM43.2m. A cource said that this should be the last leg of an asset disposal process to pull the building materials company out of financial distress. The proposed restructuring scheme includes the acquisition of Mithril's entire equity by a newly-incorporated company (newco) for RM96m, satisfied by the issuance of 384m shares in the newco at par of 25 sen per share to the promoters and/or their nominee after a capital reduction and consolidation exercise. Mithril's listing status on the Main Market will then be transferred to the newco. (StarBiz)

HeiTech: Wins RM20m project in UAE
HeiTech Padu has secured a RM20m projects for the Emirates Vehicle Gates (EVG) portal from UAE firm Saeed for Traffic Systems. The contract is for a period of 12 months.  The company said the proposed transaction will not have a material effect on the HeiTech’s net aaset for FY2012 ending Dec 31 and is expected to contribute positively to the group’s future earnings. (Financial Daily)

Asia Media: Eyes Main Market listing
Asia Media Group, the country's largest transit-TV network operator, will seek regulatory approval to move to the Main Market of Bursa Malaysia. Its controlling shareholder Datuk Ricky Wong Shee Kai said  the company plans to do so by  2Q 2012. He added that they already have people working on the plan, drafting the proposal. If all goes well, they should be able to make a submission by Apr this year. He reckoned that it will take about two months for Bursa to make a decision on the matter. (Business Times)

Grand-Flo: Plans to go to Main Board
ACE Market company Grand-Flo Solution Bhd has proposed to transfer its shares to the Main Market of Bursa Malaysia. In a filing with Bursa Malaysia, it said the proposed transfer was still at an evaluation stage, and fairly extensive preparatory work was required. It has appointed OSK Investment Bank to advise on the proposed transfer. (StarBiz)

Auto: Industry players to meet Bank Negara
Proton said that automotive industry players will meet Bank Negara Malaysia on Friday to discuss the new guidelines for loan borrowers, following the 25% drop in sales of new motor vehicles last month. The Proton Edar Dealers Association Malaysia (Peda) has called for the new responsible financing guidelines to be looked into, as it has severely damaged sales with only 30% of applicants securing car loans in the first two months of the year. The Malaysia Motor Association reported a 25% drop in sales of new motor vehicles, due to a tightening of the hire purchase loan approval process, a short working month and impact of Thailand's flood disaster. (Business Times)

Power: Ananda Krishnan mulls disposal of power portfolio
T Ananda Krishnan is said to have put his entire power portfolio up for sale after he sold the gaming business last year. Media reports said that he is looking to sell his power assets which are currently located in Malaysia, South Asia, the Middle East and Egypt, that could raised more than US$2bn (RM6.04bn). Standard Chartered is said to have been hired to run the sale of stakes in about a dozen power plants with a net generating capacity of nearly 4,000MW.


WCT clinched a contract for the construction of a medical centre and related facilities at Coastal Highway, Kota Kinabalu, Sabah. The contract value is RM331m. Scope of work covers a 9-storey hospital with 200 beds, a 10- storey complex with SOHO, office suites and 3 levels of retail space, and 1 level of basement carpark. The project is expected to be completed in Aug-14. (BMSB)

Maybank's Indonesian unit PT Bank Internasional Indonesia (BII) pre-tax profit for the year ended Dec 31, 2011 reached Rp985bn (RM331m), 25% higher compared with 2010. The improved performance was mainly driven by solid growth across the bank's core business, improvement of asset quality, as well as from overall operational improvements, said BII in a statement yesterday. (Bernama)

Contrary to general perception, the renewal for power purchase agreement of the first generation independent power producer, is on but subject to current bidding process. The first generation IPPs are bidding the same time as new players but they cannot put up the same capacity payments especially if they are seeking extension. Sources told StarBiz that under the new bids, these IPPs - YTL Power, Genting Sanyen, Port Dickson Power, Powertek and Segari Energy needed to reduce their current capacity payments for four years prior to their expiry in 2015/16. (StarBiz)

Felda Global Ventures Holdings Bhd (FGV) will proceed with its IPO without the participation of the Koperasi Permodalan Felda (KPF). However, a special purpose vehicle (SPV) will be established to allow settlers to benefit from the listing, said Felda chairman Tan Sri Isa Samad. With KPF, which was slotted to be the biggest shareholder in FGV, out of the picture, the SPV will now assume the role to channel all proceeds from the listing exercise and potential profit from the listed entity to Felda settlers. Isa told the media that FGV is still on track for listing in either May or June but the exact listing date would be decided by the Securities Commission. (Financial Daily)

Bank Islam Malaysia Bhd, the country’s oldest Islamic lender, may assume the listing status of its parent company BIMB Holdings Bhd, sources said. BIMB owns 51% of Bank Islam, from which it derives the bulk of its earnings. “BIMB have been discussing the pros and cons of such a move. They may want to simplify the BIMB group structure,” one of the sources told BT. Bank Islam accounts for some 85% of BIMB’s profit before zakat and taxation (PBZT). The rest of the BIMB group’s earnings comes mainly from a listed Islamic insurance firm, Syarikat Takaful Malaysia Bhd (STMB), in which BIMB owns a 65.2% stake. Bank Islam managing director Datuk Seri Zukri Samat, when asked about the matter in a recent interview, said: “It’s an idea the shareholders may want to consider seriously as the direct listing will give the bank flexibility in raising capital for its future expansion.” (BT)

Kencana Petroleum has secured a RM101m contract from Murphy Sarawak. It calls for the engineering, procurement and construction of offshore substructures at Patricia and Serendah offshore platforms, which are part of SK309 field development located offshore Bintulu. The contract will run from 1Q12 to 3Q12. (BMSB)

Eversendai Corp Bhd has secured contracts for projects in the Middle East and Malaysia, valued at RM185m. The group has started to tap opportunities in India, which is fast becoming one of its focused markets to achieve its growth ambitions. Its group managing director Datuk AK Nathan said the idea is to keep Eversendai's business well-spread across different regions. (BT)

Plantation company TSH Resources Bhd's net profit for the year ended Dec 31, 2011 swelled by 43% to RM120.5m as compared with the previous year. Group chairman Datuk Kelvin Tan said the palm oil segment accounted for all the profit generated in 2011. (StarBiz)

YTL Communications Sdn Bhd, which offers the YES 4G service says it is "always in talks" with its fellow industry players but has not moved beyond that. (StarBiz)


Hartalega proposes bonus issue with free warrants
Hartalega’s net profit grew 3% to RM50.7m for 3Q ended 31 Dec 2011, from RM49.2m a year earlier due to higher sales of gloves. Hartelega’s revenue for the quarter rose 28.6% to RM241.9m from RM188.1m. The nitrile glove maker also proposed a 1-for-1 bonus issue of 371.65m shares that comes with 74.33m free warrants on a 1-for-5 basis, with the intention of improving liquidity and rewarding its existing shareholders. (Financial Daily)

YTL Cement privatization a done deal
YTL Corp’s proposed privatization of YTL Cement is effectively a done deal, as its shareholding of the latter has increased to just over 90%, a level that allows the company to compulsorily acquire the remaining shares it does not own. (Financial Daily)

20120223 0952 Global Market Related News.

Asian Stocks Decline After Disappointing U.S., European Economic Reports (Source: Bloomberg)
Asian stocks declined as sales of previously owned homes in the U.S. trailed estimates and Europe’s services and manufacturing output unexpectedly shrank, adding to signs the global economy is slowing. The MSCI Asia Pacific Index fell 0.2 percent to 127.50 as of 9:18 a.m. in Tokyo.

Japan Stocks Fall on Signs Market Overbought (Source: Bloomberg)
Feb. 23 (Bloomberg) -- Japanese stocks declined, with the Nikkei 225 (NKY) Stock Average falling from a six-month high, as technical indicators signaled shares may be overbought and U.S. housing data missed estimates. Mazda Motor Corp. (7261), which forecast its largest annual loss in 11 years, lost 6.8 percent after announcing plans to raise as much as 232.8 billion yen ($2.9 billion). Mitsubishi UFJ Financial Group Inc. (8306) led declines among banks on speculation the market is overheating. Panasonic Corp. (6752) dropped 1.5 percent after the electronic company’s rating was cut by Standard & Poor’s. The Nikkei 225 fell 0.2 percent to 9,536.57 as of 9:23 a.m. in Tokyo. The broader Topix Index lost 0.3 percent to 823.17. Declines were limited as the yen’s drop to a seven-month low against the dollar buoyed the earnings outlook for exporters.

Stocks in U.S. Decline as Concern Intensifies Over Global Economic Growth (Source: Bloomberg)
U.S. stocks fell, a day after the Standard & Poor’s 500 Index failed to hold at an almost four- year high, as sales of previously owned houses missed estimates and data from Europe and China spurred economic concern. Dell Inc. (DELL), the world’s third-largest maker of personal computers, tumbled 5.8 percent after its sales forecast missed estimates. Toll Brothers Inc. (TOL) and KB Home dropped more than 4.1 percent to pace a slump in homebuilders. Banks had the biggest loss in the S&P 500 among 24 groups, falling 1.7 percent. Gannett Co., the owner of 82 newspapers including USA Today, surged 4.2 percent as it will boost its dividend. The S&P 500 retreated 0.3 percent to 1,357.66 at 4 p.m. New York time. The Dow Jones Industrial Average lost 27.02 points, or 0.2 percent, to 12,938.67 after the 30-stock gauge rose above 13,000 (INDU) yesterday for the first time since 2008. The Russell 2000 Index of small companies dropped 0.8 percent to 816.50.

Stocks in Europe Decline After Worse-Than-Expected PMI Data; TUI Retreats (Source: Bloomberg)
European stocks retreated for a second day after a report showed services and manufacturing output in the euro area unexpectedly contracted in February. Straumann Holding AG (STMN), the world’s biggest maker of dental implants, fell the most since November after full-year profit missed analysts’ estimates. TUI AG (TUI1), Europe’s largest travel company, declined 7.6 percent after Banco CAM SAU sold a 12.9- million block of shares. PSA Peugeot Citroen, Europe’s second- largest carmaker, surged 12 percent. The Stoxx Europe 600 Index (SXXP) fell 0.8 percent to 264.59 at the close. The gauge has still rallied 8.2 percent this year amid speculation that the euro area’s sovereign-debt crisis will be contained and as U.S. economic data exceeded forecasts.

Most Emerging Stocks Advance as Oil Gain Offsets Europe, China Slowdown (Source: Bloomberg)
Most emerging-market stocks climbed as higher prices for oil boosted producers, offsetting data showing a contraction in manufacturing in Europe and China. The MSCI Emerging Markets Index (MXEF) was little changed at 1064.56 at the close in New York, as 411 stocks gained and 369 declined. Brazilian oil driller HRT Participacoes em Petroleo SA advanced the most since October after a partner released oil reserve estimates for an exploration area. OGX Petroleo & Gas Participacoes SA (OGXP3) reached a ten-month high. Argentina’s Merval index (MERVAL) neared a one-month high as Tenaris SA (TS), the world’s largest producer of seamless steel tubes used in the oil industry, advanced to the highest level in seven months.
Oil rose to a nine-month high as officials from the International Atomic Energy Agency were denied access to an Iranian military base, increasing speculation tensions between Iran and Western nations will disrupt oil shipments. European services and manufacturing output unexpectedly shrank in February after expanding the prior month, data from Markit Economics showed today. China’s manufacturing may shrink for a fourth month, according to data from HSBC Holdings Plc and Markit.

Dollar Remains Higher After Yesterday’s Gain as Oil Damps Growth Outlook (Source: Bloomberg)
The dollar maintained gains from yesterday against the majority of its most-traded counterparts on concern oil prices at a nine-month high will restrain global growth, increasing demand for haven assets. The U.S. currency yesterday climbed against 10 of its 16 major peers as a report showed European services and manufacturing output unexpectedly shrank in February. The Ifo institute will today release its business climate index for Germany, Europe’s largest economy. The greenback halted a five- day gain against the yen before a U.S. report forecast to show initial claims for jobless benefits rose from a four-year low. “There’s a strong element of geo-political tensions, particularly in Iran, impacting oil prices and that’s a negative for risk,” said Greg Gibbs, a foreign-exchange strategist at Royal Bank of Scotland Group Plc in Sydney. “It could be a factor that undermines risk confidence and sees a return to U.S. dollar strength.”

Tax Cuts Should Create Growth, Not Junk Spending: Amity Shlaes (Source: Bloomberg)
Payroll-tax cut equals growth. Consumer spending equals growth. Consumer spending is 70 percent of the economy. All growth is equal. These are the axioms that motivated lawmakers to secure an extension of a payroll-tax cut this month. They felt like heroes for passing and signing a temporary break allowing citizens to skip Social Security payments. President Barack Obama, too, was pleased. He trumpeted the payroll-tax news when he was visiting a Boeing Co. (BA) plant in Washington. An aim of that trip was to persuade American companies to do more business in America. In fact, by even going to Washington, Obama was highlighting what the administration believes is Boeing’s shame: Boeing does business offshore. But Obama took the time to go off message and praise Congress on the payroll-tax issue.

Construction Jobs Rebound as U.S. Homeowners Increase Remodeling Projects (Source: Bloomberg)
Construction hiring is picking up as Americans invest in renovating their homes amid signs that the worst of the housing-market declines may be over. The number of people working in residential remodeling grew 5.8 percent in December to 250,700 from a year earlier, based on preliminary data released Feb. 3 by the Bureau of Labor Statistics. This was the highest growth for these jobs -- which account for about 5 percent of construction employment -- since December 2006, before the housing bubble burst. Sales of existing homes, which rose 4.3 percent in January, precede spending on improvement projects by about six months, as new owners often do a lot of “fix-ups” soon after they move in, said Kermit Baker, a senior fellow at Harvard University’s Joint Center for Housing Studies. That means there’s now a “strengthening market” for this work, buoyed by demand that’s more discretionary in nature -- such as minor kitchen remodels - - and mild winter weather in much of the U.S.

Distressed Properties Help Boost Home Sales (Source: Bloomberg)
Sales of previously owned U.S. homes rose in January to the highest level since May 2010 as investors took advantage of lower prices to buy distressed properties. Purchases climbed 4.3 percent to a 4.57 million annual rate, less than forecast, from a revised 4.38 million pace in December that was slower than previously estimated, a report from the National Association of Realtors showed today in Washington. Distressed properties made up the largest portion of all purchases since April. Almost one in four of all transactions was made by investors. That’s helping to clear the market of unsold properties and may stabilize prices. While the threat of more foreclosures risks slowing progress, housing may get a boost from gains in employment and mortgage rates that are near record lows.
“I don’t think we’re seeing a full-fledged recovery in housing,” said Michelle Meyer, a senior economist at Bank of America Corp. in New York. “Outside of investors and people wanting to buy distressed properties, the primary housing demand is recovering much more gradually.”

Premier Wen Seen Paring China Growth Target (Source: Bloomberg)
China’s Premier Wen Jiabao is seen signaling next month that curbing pollution, inequality and the risk of financial instability eclipse the benefits of faster economic growth, a survey of analysts indicated. Wen will target an expansion of less than 8 percent in his report to the National People’s Congress in Beijing on March 5, the equivalent of the U.S. President’s State of the Union address, according to 8 of 15 economists surveyed by Bloomberg News. The median estimate of 7.5 percent compares with the 8 percent goal maintained from 2005 to 2011, even amid the 2008-09 world recession. A cut may indicate policy makers are prepared to tolerate a slower expansion as they move the economy’s drivers to consumption from exports and investment, a shift that may address global imbalances blamed for the last financial crisis. The survey results tally with state economist Fan Jianping’s prediction last week that a reduced goal will be set to send a message to local officials bent on chasing growth.

China Manufacturing Data Show Risk of Deeper Slowdown on Exports: Economy (Source: Bloomberg)
China’s manufacturing may shrink for a fourth month in February, indicating the world’s second- biggest economy remains vulnerable to a deeper slowdown as Europe’s crisis caps exports and the housing market cools. The preliminary 49.7 reading of an index from HSBC Holdings Plc (HSBA) and Markit Economics today compared with a final 48.8 in January. A number below 50 points to a contraction. January and February economic data are distorted by a weeklong holiday. China is cutting banks’ reserve requirements from Feb. 24 to support an economic expansion that Nomura Holdings Inc. estimates may be 7.5 percent this quarter, the least since the global financial crisis. In today’s report, a measure of export orders fell to an eight-month low, underscoring Commerce Minister Chen Deming’s Feb. 9 caution that the government is not optimistic about the outlook for trade after a decline in shipments in January.
“With a meaningful rebound of domestic demand not in sight, external weakness is starting to bite, adding more downside risks to growth,” said Qu Hongbin, a Hong Kong-based economist for HSBC. The central bank “should step up policy easing as inflation pressures continue to ease,” he added.

Europe Struggles to Rebound With China’s Output Poised to Shrink: Economy (Source: Bloomberg)
European services and manufacturing output unexpectedly shrank in February as the euro-area economy struggled to rebound from a contraction in the fourth quarter. A euro-area composite index based on a survey of purchasing managers in both industries dropped to 49.7 from 50.4 in January, London-based Markit Economics said in an initial estimate today. Economists had forecast a reading of 50.5, according to the median of 16 estimates in a Bloomberg News survey. A reading below 50 indicates contraction. Budget cuts by governments may curb the pace of Europe’s recovery as countries across the region battle the sovereign- debt crisis. At the same time, China’s manufacturing may shrink for a fourth month in February, indicating the world’s second- biggest economy remains vulnerable to a deeper slowdown as Europe’s crisis caps exports.

ECB May Wind Down LTRO Program After Three-Year Loans, Deutsche Bank Says (Source: Bloomberg)
The European Central Bank’s second tranche of three-year loans next week may mark the end of its “generous” provision of long-term funding, according to Deutsche Bank AG. (DBK). While markets are hoping for “a continuation of the program through the rest of the year,” another large long-term refinancing operation, or LTRO, after this one “seems unlikely,” London-based Deutsche Bank chief economist Thomas Mayer said in a note to clients today. “We expect the more hawkish ECB council members, coming mainly from the AAA-rated countries, to oppose continuing generous LTROs on the grounds that these operations will reduce adjustment pressure on both governments and banks,” Mayer wrote. “Unless the euro crisis deteriorates significantly further,” Deutsche Bank expects the ECB “to wind down these operations” after the next three-year operation, he said.

Greek Bailout Wins Cheers From Wary Investors (Source: Bloomberg)
Greece’s bailout reinforces a rally that has driven yields for Italy and Spain down from euro-era records, giving the region’s leaders time to convince investors they can deliver both economic growth and spending discipline. “It is good to have cleared the Greek Damocles sword for a few months,” said Raphael Gallardo, the head of economic research at Axa Investment Managers in Paris, which oversees about 515 billion euros ($680 billion). “The euro area governments and European Central Bank have won some time, two months at least. It is positive for risk assets in the short run.” Italy’s average 10-year borrowing cost has dropped to below 5.4 percent this year from 7.1 percent at the end of December. Spain’s 10-year yield is 5.08 percent, down from more than 6.7 percent in mid-November and compared with its 2011 average of 5.4 percent.

Euro-Area Manufacturing, Services Unexpectedly Contract Amid Budget Cuts (Source: Bloomberg)
European services and manufacturing output unexpectedly shrank in February as the euro-area economy struggles to rebound from a contraction in the fourth quarter. A euro-area composite index based on a survey of purchasing managers in both industries dropped to 49.7 from 50.4 in January, London-based Markit Economics said in an initial estimate released by e-mail today. Economists had forecast a reading of 50.5, according to the median of 16 estimates in a Bloomberg News survey. A reading below 50 indicates contraction. Budget cuts by governments may curb the pace of Europe’s recovery as countries across the region battle the sovereign- debt crisis. At the same time, China’s manufacturing may shrink for a fourth month in February, indicating the world’s second- biggest economy remains vulnerable to a deeper slowdown as Europe’s crisis caps exports.

Merkel Signals She’ll Keep Pressure on Greece (Source: Bloomberg)
German Chancellor Angela Merkel indicated she will maintain pressure on Greece to meet debt- cutting pledges required for its second financial rescue, saying fiscal discipline is needed to hold the euro area together. “If you have a single currency you naturally have to be able to trust each other,” she told members of her Christian Democratic Union party in Demmin, Germany, today. While “it is right” to bail out Greece, Portugal and Ireland, “we have to say again and again that everyone must do their homework because otherwise this Europe can’t hold together.”
Merkel’s renewed backing for European unity in the face of the debt crisis marked her first public comments since euro-area finance ministers signed off yesterday on a 130 billion-euro ($172 billion) rescue for Greece aimed at averting the first sovereign default in the currency union’s 13-year history.

20120223 0952 Global Commodities Related News.

USDA Says Rule Changes to Hasten Modified Crop Approvals (Source: Bloomberg)
Seed companies including Monsanto Co. (MON), the world’s largest, will get speedier regulatory reviews of their genetically modified crops under forthcoming rule changes, the U.S. Department of Agriculture said. The goal is to cut by half the time needed to approve biotech crops from the current average of three years, Michael Gregoire, a USDA deputy administrator, said today in a telephone interview. The changes will take effect when they’re published in the Federal Register, probably in March, he said. Approvals that took six months in the 1990s have lengthened because of increased public interest, more legal challenges and the advent of national organic food standards, Gregoire said. U.S. farmers worry they may be disadvantaged as countries such as Brazil approve new technologies faster, said Steve Censky, chief executive officer of the American Soybean Association. “It is a concern from a competition standpoint,” Censky said in a telephone interview.

Speculator positions to swell in US corn and soybeans
-- Gavin  Maguire is a Reuters market analyst. The views expressed are his own.--
CHICAGO, Feb 21 (Reuters) - Large speculator net positions in U.S. corn and soybean futures look set to swell over the coming months from their current relatively stunted levels as improving end-user demand for both commodities - coupled with a looming acreage war between the two crops - entice greater non-commercial interest in the coming months.  But any sharp fund-driven climb in prices stands to test end-user demand, and may set the stage for a potentially steep price retreat should the upcoming planting season get underway amid crop-friendly conditions.

Corn (Source: CME)
US corn futures end higher as traders unwind corn-soybean spread trades that had weighed on prices recently. Soybeans' gain versus corn has recently prompted some traders to worry farmers would plant less corn this spring, although others say the crop will be large regardless. Traders note firm cash prices and talk of increased exports also supported corn, though the market remain in a tight range. CBOT March corn ends up 8 3/4c at $6.38 1/4 a bushel.

Wheat (Source: CME)
US wheat futures climb amid strength in corn and optimism about export demand. Analysts say wheat was supported by corn, which climbed in a correction of the corn/soybean spread. Firm export-basis levels are also considered supportive, and traders are watching possible disruptions to Black Sea supplies due to cold that could boost US exports. Still, traders say world wheat supplies are abundant and that the market's upside is limited. CBOT March wheat ends up 11 1/2c at $6.44 1/2 per bushel while March KCBT climbs 8c to $6.85 and MGEX March adds 1 1/2c to $8.18 1/4.

Rice (Source: CME)
US rice futures end slightly higher, in a modest rebound following four straight days of losses. Weak demand hangs over the market, which like other grains has been range-bound recently. Uncertainty about US planted acreage underpins. CBOT March rice ends up 9c to $13.92 per hundredweight.

US soybeans down on crop prospects; wheat weak
NEW DELHI, Feb 22 (Reuters) - Chicago soybeans fell on expectations that farmers will boost plantings in America, encouraged by a $6.7 billion deal by China to buy a record amount of U.S. beans.
"Gradually everyone is getting to realise that the deal between the United States and China will encourage farmers to plant more  soybean now," said Jonathan Barratt, chief executive of BarrattBulletin, a Sydney-based commodity research firm.

Indonesia to import up to 2 mln T rice in 2012
JAKARTA, Feb 22 (Reuters) - Indonesia plans to import up to 2 million tonnes of rice this year to ensure food security, an unexpected move that could soak up regional stockpiles and support prices.
The country had aimed to avoid rice imports this year after surprising markets by buying 1.9 million tonnes in 2011, but output from the world's third largest grower is again falling short of forecasts, threatening its ambition to become self-sufficient in rice.

Russia seen unlikely to impose taxes on grain exports
SINGAPORE, Feb 22 (Reuters) - Russia is unlikely to impose taxes on grain exports, thanks to its ample supplies, an official of the country's farm ministry said on Wednesday.  "To my way of thinking, and in most likelihood, taxes will not be introduced," Krestyaninov Artem, a deputy director at the ministry, told reporters at a grains conference in Singapore.  

Russia to maintain grain exports to Iran - ministry official
SINGAPORE, Feb 22 (Reuters) - Russian traders will export grain to Iran until Russia decides whether to ban sales in line with U.S. and European sanctions on Iran, an Agriculture Ministry official said on Wednesday.
"Until the Russian government makes a decision to ban grain exports to Iran, exports will continue," Krestyaninov Artem, a deputy director at the ministry, told reporters on the sidelines of a grains conference in Singapore.

Russian wheat exports seen at 22 mln T despite weather
SINGAPORE, Feb 22 (Reuters) - Russia will maintain its wheat exports at around 22 million tonnes in the year to June 2013 with minimal damage so far to the winter crop from adverse weather, lobby group the Russian Grain Union said on Wednesday.  
Russia has exported 18 million tonnes of wheat so far this year and expects to sell another 4 million before the year ends in June.

Conveyor collapse shuts ADM U.S. grain export facility
Feb 21 (Reuters) - A grain conveyor belt collapsed at an Archer Daniels Midland  elevator in Ama, Louisiana, late last week, halting loading at the export facility on the Mississippi River west of New Orleans, a company spokeswoman said on Tuesday .
The conveyor, which collapsed on Friday, connected the company's on-site grain storage elevators with the equipment that loads grain into bulk cargo vessels on the river.

US farm-loan giant confident it will stay free of Dodd-Frank
CHICAGO, Feb 21 (Reuters) - The Farm Credit System, a giant government-linked lender to U.S. farmers and rural communities with $230 billion in assets, is confident it can stay mostly exempt from oversight by U.S. banking regulators despite bitter criticism by competing private banks, Farm Credit officials say. "We are competitors. They'd be happy if the system didn't exist," Kenneth Auer, president of the Farm Credit Council, the system's lobbying group, said in an interview. "We had our Dodd Frank moment in the 1980s," he added, citing a bailout by Congress that revamped and tightened government oversight and laid the foundation for the System's current strength.

Canada 2011 farm income hits record high
Feb 21 (Reuters) - Canadian farmers recorded record-high net income in 2011, but their earnings are likely to slip modestly in 2012, Canada's agriculture department said on Monday.
In 2011, strong crop and livestock prices, combined with higher government payouts for flooding in western Canada more than offset higher operating expenses, Agriculture and Agri-Food Canada said in a report. Net cash income reached C$11.7 billion in 2011.

Brazil 2012 maize output seen at record 60 mln T-FAO
MILAN, Feb 21 (Reuters) - Brazil's total maize output, including main and second seasons, is expected to rise 7 percent to a new record of about 60 million tonnes in 2012 due to a surge in winter plantings, the United Nations' Food and Agriculture Organisation said on Tuesday.
The areas planted for the second season are estimated to expand significantly, including a 29 percent surge in plantings in the state of Mato Grosso, to offset an expected fall in the main season output after a long dry spell in major southern growing regions, the FAO said in its country brief.

Kazakhstan expects sharp decline in 2012 grain crop
ASTANA, Feb 21 (Reuters) - Kazakhstan expects its grain harvest to revert to an average level of between 13 million and 15 million tonnes this year, a sharp decline from the record post-Soviet crop of 2011, Deputy Agriculture Minister Muslim Umiryayev said on Tuesday.
Central Asia's largest wheat exporter harvested 27 million tonnes of grain by clean weight last year, its largest crop since independence from the Soviet Union in 1991. In drought-hit 2010, the harvest was only 12.2 million tonnes.

India's Wheat Exports Likely To Pick Up Only After June (Source: CME)
India's wheat exports will likely start in earnest around mid-year, after state-run agencies complete purchases for government inventories, as most farmers would prefer to sell their output at an attractive government-mandated minimum purchase price, a level that exporters can't compete with, trade executives said. Traders will likely hold back from making purchases until the government completes its stock-building program, as buying at levels near the government price would reduce the competitiveness exports on the world market, said a senior Mumbai-based trader of an international commodities trading company. India raised the minimum purchase price for wheat by about 15% to INR1,285 per 100 kilograms (around $260 a ton) in October to increase planting interest just ahead of the sowing of crops. Meanwhile, Indian wheat is being quoted for export around $268-$270 a ton, free on board.
The government is targeting a 12.6% increase in wheat purchases, to 31.89 million metric tons during the fiscal year that starts April 1, which will likely put it on track to complete its buying by the end of June. India has exported limited supplies of wheat since an export ban was lifted in September, as local prices have been quoted on par with or higher than international rates. Between 450,000 and 500,000 tons of wheat has been shipped from the country to date. Most of the shipments have been to the Middle East, with a small quantity having also been shipped to neighboring Bangladesh. Around 15,000 metric tons of wheat was being loaded on to a vessel at India's western port of Mundra for shipment to the Middle East, two senior trade executives said. Industry officials are optimistic that supplies will be available for export on the back of a record crop forecast for the crop year that ends June 30.
M.K. Dattaraj, former president of the Roller Flour Millers Federation of India, said prices will probably fall below the minimum purchase price in the second half of the year, adding that it is "too early" to forecast the amount of wheat that will be available for export. The government has forecast 2011-12 wheat output at a record 88.31 million tons, but officials have said the figure could exceed 90 million tons thanks to favorable weather. Some of the country's early wheat has started arriving in markets in the western province of Gujarat--no more than 300 tons to 400 tons daily, industry participants said. The wheat harvest in the country's breadbasket northern region usually begins in April.

China's Draft Grain Law Takes Tough Tone On GM Crops, Deep Processing (Source: CME)
China published a draft grain law proposing tough management of genetically modified grains and the "deep grain processing" industry. The proposed law underscores the challenges posed by plans to approve large-scale planting of GM crops while also remaining sensitive to uncertainties surrounding technologies that are redefining agriculture. China has been slow to approve GM grains, but also cognizent of the need to leverage new agricultural techniques to improve yields amid a tight domestic supply-and-demand balance. The Legislative Affairs Office of the State Council, China's cabinet, said in a statement on its website that it will solicit public opinion on the draft, without specifying when the new law will become effective. "No units or individuals shall apply GM technologies to the main grain crops [wheat, rice and corn] without authorization," the draft law said.
In 2009, the Ministry of Agriculture gave safety approval for some GM strains of rice and corn, permitting test plots and paving the way for commercial production. Projects involving deep processing--the use of grains for purposes other than direct consumption, most commonly associated with production of alcohol and starch--of corn, wheat and rice as raw materials must seek government approval, according to the draft law. The government will limit the volume of grains consumed by deep processors when necessary, it said. Deep processors process around a third of China's total corn output.

Archer Daniels Midland To Expand Partnership With Asia-Based Wilmar (Source: CME)
Archer Daniels Midland Co. said it has reached an agreement with Singapore-based Wilmar International Ltd. to expand the companies' existing partnership. ADM, which owns a 16% stake in Wilmar, said the companies would extend their partnership to fertilizer, ocean freight and tropical oil refining in Europe. The two companies, which trade and process grains and oilseeds, have signed a memorandum of understanding, ADM executives said at an investor presentation Tuesday afternoon. ADM's partnership with Wilmar has given it access to the market in China, where the two companies built a network of soybean-crushing plants. ADM, based in Decatur, Ill., said the companies' relationship started in the mid-1990s. "We have an excellent relationship with Wilmar's leadership, and we see Wilmar as a key partner, especially in our strategy to serve growing Asian demand for agricultural products," ADM CEO Patricia Woertz said.
The companies will now collaborate globally on fertilizer purchasing and distribution, and they will work to improve ocean freight fleet management, with both companies contributing two ships to the effort. In tropical oils, the companies will work together to better use plant capacity in Europe, ADM said. Woertz also told investors that a company job-reduction program, announced in January, would cut 4% of the company's global work force, up from an initial estimate of 3%. The company will take a one-time charge at the upper end of the previously announced range of $50 million to $75 million, Woertz said. She added that pre-tax savings from the job cuts would reach $125 million annually, up from a previous estimate of $100 million, and that the company would start to realize benefits in the fourth quarter. The cuts will make ADM a "much more creative, lean, nimble organization," Woertz said.
ADM is completing its job cuts in the U.S., which have included layoffs and early retirements, this week, while other cuts globally will proceed over the next several months. The number of total job cuts is expected to exceed 1,200.

One Million Tons Russian Agri-exports Delayed By Sea Freeze (Source: CME)
Russian exports, of around 1 million metric tons of agricultural commodities, primarily grains such as wheat, have been delayed in the past month because freezing temperatures at ports in the south have prevented ships from reaching berths, shipping executives and traders said. Some ships already loaded with grains are also unable to leave for their destinations, they said. "The figure includes the grain stuck in both shipping vessels which are already loaded and the volume lying in the port warehouses," Talibov Said, president of South Sea Port near Azov, said on the sidelines of an international grains conference here. Russia is one of the world's largest exporter of grains and oilseeds, and almost all its shipments take place from the southern ports. The delay in exports is one of the reasons for firming up of global prices in recent months.
Usually parts of rivers are frozen for a while in winter but it is unusual for Azov Sea waters near southern ports to turn into ice, said a Moscow-based cargo surveyor. The smaller ports around Azov cater to importers in Turkey, Israel, the Middle East and European Union with cargoes of up to 5,000 tons each. The South Sea Port alone handles cargoes of around 50,000 tons monthly, at present mostly wheat. Many ships are unable to reach berths, and exporters are resorting to force majeure, said Karina Nor-Arevian, head of South Sea Port's legal department. The weather is expected to improve only after mid-March, when the usual grain-loading operations can resume, Nor-Arevian said. There are at least six ports in and around the city of Azov in southern Russia's Rostov district, with a total annual cargo handling capacity of close to 5 million metric tons, where operations have gone off-gear, she said.
Cargo surveyors said four ice-breakers are performing the steering operations of the vessels from Azov, Rostov, Taganrog and Yeisk ports, where the backlog is unlikely to be cleared before April. In the past nearly eight months, Russia has exported close to 20 million tons of grains, at a monthly average of almost 2.5 million tons, but shipments are unlikely to be more than 5 million tons in the rest of the marketing year that ends June 30, or a tad above 1 million tons a month, Arkadiy Zlochevsky, president of the Russian Grain Union said. The weather isn't quite favorable for exports but a slowdown is natural during this time of the year, Zlochevsky said. The supply disruption is temporary, the grain is still there and the backlog will be cleared eventually, Jay O'Neil, senior agricultural economist with Kansas State University said. The Black Sea is open and deep sea ports of Tuapse and Novorossiysk are operational though there were delays earlier this month, the Moscow-based cargo surveyor said.

Ivorian cocoa exports 640,492 tonnes by Feb 5-BCC
ABIDJAN, Feb 21 (Reuters) - Exports of cocoa beans and cocoa products from Ivory Coast hit 640,492 tonnes by Feb. 5 since the start of the season in October, down about 1 percent from a year earlier, data from industry regulator BCC obtained by Reuters showed on Tuesday.
According to the data, 53,861 tonnes were exported from the country's two ports between Jan. 30 and Feb. 5.

Arabica Coffee Drops Most in Week as Supplies Increase; Sugar Futures Gain (Source: Bloomberg)
Arabica-coffee futures fell the most in a week as stockpiles climbed and producers sought to increase sales in Brazil, the world’s top grower. Sugar and cocoa rose. Coffee inventories monitored by ICE Futures U.S. have jumped 24 percent since the end of October, exchange data show. As of Feb. 17, Brazil’s permits for exports this month surged 26 percent from January, the nation’s Council of Coffee Exporters, known as Cecafe, said on its website. Markets in the country were closed on Feb. 20 and 21 for the Carnival festival. “Brazilian sellers are back in the market,” Hernando de la Roche, the director of futures at INTL FCStone in Miami, said in a telephone interview. “Stocks are also rising.” On ICE, arabica-coffee futures for May delivery declined 2 percent to settle at $2.0185 a pound at 2 p.m., the biggest drop since Feb. 14. The price has tumbled 11 percent this year.
Raw-sugar futures for May delivery rose 1 percent to 24.71 cents a pound in New York. The sweetener has gained 6.1 percent in 2012, after plunging 27 percent last year. As of Feb. 1, sugar output in Brazil’s Center South, the world’s largest growing-region, fell 6.8 percent for the season that ends March 31 from a year earlier, Unica, an industry group, said last week.

Brent crude falls towards $121 on euro zone worry, China data
SINGAPORE, Feb 22 (Reuters) - Brent crude edged down towards $121 on Wednesday, retreating from a nine-month high, as weaker Chinese manufacturing data and resurfacing worries about the euro zone debt crisis cast doubt on global economic health and prospects for fuel demand.
"Prices are correcting as we've already got the boost from Greece and Iran's pre-emptive stoppage of oil to Britain and France," said Tony Nunan, a risk manager at Mitsubishi Corp, adding that the slowdown in Chinese manufacturing activity also weighed on prices.

China, India plan Iran oil cuts of 10 pct or more
BEIJING/NEW DELHI, Feb 21 (Reuters) - China, India and Japan are planning cuts of at least 10 percent in Iranian crude imports as tightening U.S. sanctions make it difficult for the top Asian buyers to keep doing business with the OPEC producer.
The countries together buy about 45 percent of Iran's crude exports. The reductions are the first significant evidence of how much crude business Iran could lose in Asia this year as Washington tries to tighten a financial noose around Tehran.

Crude Oil Falls From Highest Close in 9 Months as API Stockpiles Increase (Source: Bloomberg)
Oil dropped from a nine-month high in New York as investors speculated that fuel demand may falter after a report showed crude stockpiles increased in the U.S., the world’s biggest consumer of the commodity. Futures slipped as much as 0.4 percent, heading for the first decline in more than a week. U.S. supplies rose 3.55 million (APISCRUD) barrels last week, figures from the industry-funded American Petroleum Institute showed. An Energy Department report today may show inventories climbed 1.35 million barrels to the highest level in almost five months, according to a Bloomberg News survey of analysts. Oil for April delivery fell as much as 39 cents to $105.89 a barrel in electronic trading on the New York Mercantile Exchange and was at $105.93 at 10:50 a.m. Sydney time. The contract yesterday gained 3 cents to $106.28, the highest close since May 4. Prices are 8 percent higher in the past year.
Brent oil for April settlement advanced $1.24, or 1 percent, to $122.90 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark contract’s premium to New York-traded West Texas Intermediate closed at $16.62. It reached a record of $27.88 on Oct. 14.

20120223 0951 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures end higher, managing to rebound from early losses as late gains in corn and wheat drag soybeans higher. Spread unwinding was featured throughout the day, with traders taking profits of long soybean/short corn and wheat contracts keeping pressure from soybeans for most of the day, analysts say. Traders are reducing some risk ahead of Thursday's USDA Outlook Forum, where it will release their first projections for the 2012-13 marketing year. After the spread trading ran its course, a strong technical picture and solid export demand allowed soybeans to bounce with a late rally in corn and wheat, analysts add. March CBOT soybeans ended up 1 1/4c at $12.72 1/4/bushel.

Soybean Meal/Oil (Source: CME)
Soy product futures bounce, garnering strength from a late session recovery in soybeans. Soyoil led the advances in the products, supported not only by soybeans, but solid demand and general price strength in crude oil futures, analysts say. CBOT March soyoil ended up 0.16c at 54.22c/pound, and March soymeal ended up $1.10 to $331.30/short ton.

Palm hits new 8-mth high on strong demand outlook
SINGAPORE, Feb 22 (Reuters) - Malaysian crude palm oil futures rose to its highest in more than eight months supported by an upeat demand outlook and strength in energy markets.    
"The market is at a crossroad between bullish fundamentals and bearish technicals," said a trader with a local commodities brokerage in Malaysia.

Pakistan's Indonesian palm imports to quadruple
JAKARTA, Feb 21 (Reuters) - Pakistan's imports of palm oil from top producer Indonesia will more than quadruple to 800,000 tonnes over the next three years, an executive at an Indonesian industry group said on Tuesday.
Indonesia and Pakistan signed a preferential trade agreement in early February, which will result in Islamabad lowering its duty on crude palm oil.