Tuesday, March 13, 2012

20120313 1833 FCPO EOD Daily Chart Study.

FCPO closed : 3365, changed : +48 points, volume : lower.
Bollinger band reading : upside biased with possible pullback correction.
MACD Histrogram : resumed rising, buyer still in control.
Support : 3350, 3300, 3270, 3250 level.
Resistance : 3420, 3450, 3470, 3500 level.
Comment :
FCPO rallied higher with lesser volume transacted. Soy oil price currently surging higher registering more than 1% gain after overnight closed recorded loss while crude oil price resume rising after overnight decline.
Crude palm oil May 2012 contract price opened and traded higher after crude oil stayed higher and reuters survey shows increased in India palm oil imports by 28%.
Technical chart study revised to suggesting an upside biased market development with possible pullback correction.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20120313 1815 FKLI EOD Daily Chart Study.

FKLI closed : 1565.5 changed : +0.5 point, volume : higher.
Bollinger band reading : correction range bound little upside biased.
MACD Histrogram : falling lower, seller taking exposure.
Support : 1565, 1550, 1540, 1530 level.
Resistance : 1570, 1580, 1590, 1600 level.
Comment :
FKLI closed 1 tick higher with increasing volume transacted doing 1.5 point premium compare to cash market that closed little lower. Overnight U.S. markets closed firmer and today Asia markets rebounded higher while European markets currently soaring higher.
Regional markets traded higher as European leader gather to complete 2nd bailout for Greece, speculation on China will ease policy to spur growth and improved Germany investors confidence while awaits U.S. retail sales data.
Technical chart analysis remained calling a correction range bound little upside biased market development testing resistance near middle Bollinger band level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

20120313 1726 Regional Markets EOD Daily Chart Study.

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

20120312 1626 Global Market & Commodities Related News.

Asian shares rise ahead of Fed, BOJ
SINGAPORE, March 13 (Reuters) - Asian stocks rose to their highest in a week, while the dollar hovered below an 11-month high against the yen, supported by recent signs of improvement in the U.S. economy, ahead of a policy decision by the Federal Reserve.
"Although the market does not expect additional moves by the BOJ today, and the U.S. (Federal Reserve) is expected to string markets along with hopes for QE3, there is really no other news to trade on," said Hajime Nakajima, a sales trader at Cosmo Securities in Osaka.

China c.bank eyes freer yuan, policy flexibility
BEIJING, March 12 (Reuters) - China will encourage the value of its yuan currency to be set by the market and step back from intervention "in an orderly manner", while keeping policy flexible to support credit growth in the face of volatile capital flows, the central bank said on Monday.
Speaking days after China posted its biggest trade deficit in at least a decade, People's Bank of China (PBOC) Governor Zhou Xiaochuan Zhou said monetary policy moves would respond to liquidity conditions determined by the balance of payments, demand for yuan in markets and international capital flows.

FOREX-Dollar supported ahead of Fed on brighter economic outlook
TOKYO, March 13 (Reuters) - The U.S. dollar hovered just below a seven-week high against a basket of currencies on Tuesday, bolstered by expectations that a string of positive economic data should persuade the U.S. Federal Reserve out of applying fresh stimulus, at least for now.
The yen was buried near a 11-month low against the U.S. currency, with some traders on edge over whether the Bank of Japan may take fresh easing steps at the end of its two-day meeting, after its surprise easing last month. A decision was expected around midday.

Euro zone economy prospects show flicker of hope -OECD
PARIS, March 12 (Reuters) - The euro zone is showing tentative signs of improvement, the latest monthly readout from the Organisation for Economic Co-operation and Development (OECD) showed on Monday.
The OECD's leading indicator, a measure that seeks to flag turning points in economic activity, rose for the euro zone area in January and also turned positive in Britain, adding 0.2 percentage points in the common currency bloc and 0.1 percentage points in Britain.

US corn dips after rally, soy firm on tight supply
SINGAPORE, March 13 (Reuters) - Benchmark U.S. corn futures for May eased slightly after rallying 2 percent a day earlier on expectations of Chinese purchases, while soy was firm at multi-month highs on lower supply from South America.
"More plantings are likely to boost U.S. stockpiles, which is keeping a lid on the prices," said Ker Chung Yang, analyst at Phillip Futures in Singapore.

Ivory Coast cocoa mid crop seen below 5-year average
LONDON, March 12 (Reuters) - Ivory Coast's 2011/12 mid crop output will fall slightly below the average production over the past five years due to dry weather, which is also likely to harm quality, international exporters said on Monday.
The average forecast, based on four exporters' estimates, pegged the April-September mid crop at around 323,000 tonnes, down sharply from last year's bumper 471,735 tonnes, when ideal weather boosted output.
 
Ukraine sees no grain export limits in 2012/13-PM
KIEV, March 12 (Reuters) - Ukraine will not impose grain export limits in the coming season because of expectations of an "average" harvest despite drought late last year followed by sharp frosts, Prime Minister Mykola Azarov said on Monday.
Azarov told Reuters in an interview that the former Soviet republic had enough milling grain to meet all domestic needs in 2012/13.
 
India bans fresh cotton exports - for now
NEW DELHI, March 12 (Reuters) - India will now ban fresh cotton exports and allow only quantities already registered  but not shipped, its trade secretary said on Monday, as the world's No.2 producer continued to flip-flop with its trade policy, fuelling market uncertainty.
The trade minister said on Sunday the government would lift a surprise ban on cotton exports imposed on March 5, after
influential Farm Minister Sharad Pawar, a coalition ally, opposed the move and asked Prime Minister Manmohan Singh to revoke the ban.
 
Analyst ups Ukraine '12 grain crop f'cast by 7 pct
KIEV, March 12 (Reuters) - Kiev-based consultancy ProAgro on Monday raised its forecast for Ukraine's 2012 grain harvest to 45.66 million tonnes from a previous outlook of 42.64 million.
The former Soviet republic was likely to harvest 21.3 million tonnes of corn and 14.3 million tonnes of wheat this year, the consultancy said in a note.

Ivory Coast weather good for cocoa mid-crop
ABIDJAN, March 12 (Reuters) - Ivory Coast's cocoa growing regions received a good mix of sun and rain last week, improving prospects for the April-to-September mid-crop harvest, farmers and analysts said on Monday.
First beans from the mid-crop are expected in May or June, later than normal after a stretch of dry, windy weather that cut volumes and hurt quality during the top world grower's October-to-March main crop.

Experts develop salt-tolerant, high-yield wheat
HONG KONG, March 12 (Reuters) - Scientists in Australia have crossed a popular, commercial variety of wheat with an ancient species, producing a hardy, high-yielding plant that is tolerant of salty soil.
The researchers, who published their work on Monday in the journal Nature Biotechnology, hope the new strain will help address food shortages in arid and semi-arid places where farmers struggle with high salinity in the soil.

Brent rebounds towards $126 ahead of Fed meet
SINGAPORE, March 13 (Reuters) - Brent crude rebounded towards $126 as investors awaited comments from the U.S. central bank after the outlook improved for the world's largest economy amid simmering tension between the West and Iran that could threaten oil supply.
"The FOMC could recognise that the economy has improved and this will have a positive impact on the market," said Tetsu Emori, a Tokyo-based commodities fund manager at Astmax Investments.

Colombian drivers demand a bigger cut of oil boom
BOGOTA, March 12 (Reuters) - Colombian drivers on Monday called for a one-day boycott of filling stations to pressure for lower gasoline prices in a country that has one of Latin America's fastest-growing oil industries.
Colombians are irate at increases in government-controlled gasoline prices while energy companies are flocking to the country's oilfields and production has nearly doubled in five years.

US to challenge China on rare earths curbs at WTO
WASHINGTON, March 12 (Reuters) - The United States, Japan and European Union plan to bring a new trade case against China over its export restrictions on rare earth minerals used in a variety of high-tech and clean energy products, senior administration officials said on Monday.
They were responding to a published report by the Associated Press which said President Barack Obama would announce on Tuesday that the United States would ask China for talks on the issue at the World Trade Organization, the first step in filing a trade case, and be joined by the EU and Japan.

Copper firms in light trading ahead of Fed meeting
SINGAPORE, March 13 (Reuters) - London copper firmed , reversing previous session's losses, although most investors stayed on the sidelines ahead of a key U.S. Federal Reserve meeting to see which way monetary policy was headed in the world's largest economy.
"The consensus in the market is that the Fed is unlikely to announce aggressive easing today, which is in line with what it has said since February," said Chen Dixi, an analyst at Jinrui Futures, a unit of China's top copper producer Jiangxi Copper.

Copper supply to meet demand in 2013-Southern
NEW YORK, March 12 (Reuters) - The global supply of copper will fall short of demand until the second half of 2013 as environmental and financing difficulties delay new production plants, the chief financial officer of Peru's Southern Copper said.
Project delays and unexpected production halts have maintained a five-year copper supply deficit of between 300,000 and 400,000 tonnes a year, or about 3 percent of the world's production, helping prices hit an all-time high early in 2011.
 
China March copper imports may rise in March, fed by demand hopes
HONG KONG, March 12 (Reuters) - China's arrivals of refined copper may rise this month after February's higher than expected figure, as importers scheduled more term shipments under 2012 contracts on expectations of peak domestic demand, traders said on Monday.
But demand in the world's biggest copper consumer has not picked up after the Lunar New Year holiday in late January, prompting importers to delay some term shipments, trimming the scale of increase in March, traders said.

Gold gains ahead of Fed meeting, euro helps
SINGAPORE, March 13 (Reuters) - Gold ticked higher as the euro rebounded although trading was cautious with investors waiting for the outcome of a Federal Reserve meeting, which could offer clues over the direction of interest rates in the world's largest economy.
"I think everybody is staying on the sidelines. On the investment side especially, people still try to keep more cash on hand. They have no intention to buy a substantial amount of gold right now," said Dick Poon, manager of precious metals at Heraeus in Hong Kong.

Work resumes at Freeport Indonesia mine - union
JAKARTA, March 12 (Reuters) - Work at the Grasberg mine in eastern Indonesia run by Freeport-McMoRan Copper & Gold Inc  resumed as expected on Monday for the first time since a suspension on Feb 23, according to the company and the union.
"PT Freeport Indonesia has resumed production activities, Monday, March 12, 2012. Management and the union leaders have been coordinating to mobilise the employees back to work," said a statement from the company emailed to Reuters.

METALS-Copper firms in light trading ahead of Fed meeting
SINGAPORE, March 13 (Reuters) - London copper firmed on Tuesday, reversing previous session's losses, although most investors stayed on the sidelines ahead of a key U.S. Federal Reserve meeting to see which way monetary policy was headed in the world's largest economy.
Economists polled by Reuters believed the Fed would launch a stimulus programme despite recent signs of an improving labour market, but cautioned that the scale might be smaller than initially expected.

PRECIOUS-Gold gains ahead of Fed meeting, euro helps
SINGAPORE, March 13 (Reuters) - Gold ticked higher on Tuesday as the euro rebounded although trading was cautious with investors waiting for the outcome of a Federal Reserve meeting, which could offer clues over the direction of interest rates in the world's largest economy.  
Easing expectations for the Fed to signal the need for more measures to keep interest rates low could eventually weigh on gold, which has risen around 9 percent so far this year on a near-zero U.S. rate outlook.

20120313 1212 Global Market & Commodities Related News.

Asian Stocks Advance on Optimism Euro Leaders Will Complete Greek Bailout (Source: Bloomberg)
Asian stocks rose, with the benchmark index set to gain for a third day in four, amid optimism euro-area finance chiefs will complete a second Greek bailout, and before policy announcements by the Bank of Japan and U.S. Federal Reserve today. Nintendo Co. (7974), a manufacturer of game consoles that gets a third of its sales in Europe, rose 1 percent in Osaka. Wynn Macau Ltd., a unit of the casino operator founded by billionaire Steve Wynn, jumped 7.4 percent in Hong Kong after Deutsche Bank AG said Macau casino revenue may grow 25 percent in 2012. Cathay Financial Holding Co., a Taiwan-based insurer, gained 6.9 percent in Taipei after a report the company is seeking a partnership with a Chinese bank.
“It seems like the Greek bond deal is going through; that issue is off the table, at least for the time being,” said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion. “I wouldn’t expect much out of the BOJ, and obviously people will wait and see what the Fed says.” The MSCI Asia Pacific Index rose 1.1 percent to 127.49 as of 12:03 p.m. in Tokyo, with almost four stocks climbing for each that fell. All 10 industry groups in the measure advanced.


GLOBAL MARKETS-Dollar off highs, shares firmer before Fed, BOJ
SINGAPORE, March 13 (Reuters) - The dollar hovered below an 11-month high against the yen on Tuesday and regional shares edged higher, as investors awaited policy decisions by the Bank of Japan and the U.S. Federal Reserve.
Currency traders have said that there has been some market speculation that the BOJ may conduct more monetary easing on Tuesday, an outcome that could spark another sell-off in the Japanese currency.

COMMODITIES-Oil, metals end down on dollar rally; corn bucks trend
NEW YORK, March 12 (Reuters) - Oil snapped a three-day run-up on Monday and metals prices fell too as the dollar rallied on the notion that a recovering U.S. economy will get less stimulus money than initially thought.
"Investors are beginning to feel that the oil price has reached its upper limit and are taking profits while they can," said Carsten Fritsch, commodity analyst at Commerzbank.

Surging U.S. oil exports cannot stay hidden forever
--Robert Campbell is a Reuters market analyst. The views expressed are his own--
NEW YORK, March 12 (Reuters) - America's periodic gasoline price debate is usually a mix of willful ignorance and cynicism that achieves little but oil executives must be hoping the latest episode dies down before the United States' massive fuel exports get much attention.
After all, exports of diesel fuel, and increasingly gasoline, are now crucial profit centers for many U.S. refineries, hard pressed by shrinking domestic demand.

China oil demand as good as it gets
-- Clyde Russell is a Reuters market analyst. The views expressed are his own. --
SINGAPORE, March 12 (Reuters) - China's record crude imports in February are most likely as high as they will go, at least for the coming months, as rising prices, refinery maintenance and slower economic growth curb demand.
China swallowed a record 5.95 million barrels per day of crude last month from overseas, continuing a recent strong run of imports.

OIL-Oil slips on China, Europe growth concerns
NEW YORK, March 12 (Reuters) - Oil prices fell on Monday on concerns about slowing growth in China and recession in Italy, along with reduced fears of immediate supply disruption because of tensions with Iran.
"You have growth concerns in China with their trade deficit and Italy confirming it's in recession and worry about Spain and with no more provocative headlines over the weekend and talks still expected, some of the Iran fear premium is being taken off," said Phil Flynn, analyst at PFGBest Research in Chicago.

NATURAL GAS-US natural gas ends down 2 pct, stays near 10-yr low
NEW YORK, March 12 (Reuters) - U.S. natural gas futures slid just over 2 percent on Monday, managing to remain above a recent 10-year low despite weaker crude, mild late-winter weather and swollen inventories.
"With less than two weeks to the start of spring and with the weather conditions already spring-like in many parts of the country, the probability that total natural gas in inventory will end at an all-time record high level is increasing by the week," said Energy Management Institute's Dominick Chirichella.

Colombian drivers demand a bigger cut of oil boom
BOGOTA, March 12 (Reuters) - Colombian drivers on Monday called for a one-day boycott of filling stations to pressure for lower gasoline prices in a country that has one of Latin America's fastest-growing oil industries.
Colombians are irate at increases in government-controlled gasoline prices while energy companies are flocking to the country's oilfields and production has nearly doubled in five years.

EURO COAL-Prompt prices fall again on weak demand
LONDON, March 12 (Reuters) - Prompt physical coal prices fell again on Monday by around $1.00 a tonne as buyers pulled back and oil slipped below $125 a barrel.
"Oil's down, the energy complex is weaker so it's no surprise coal has come off slightly - except that when oil prices were steady last week, coal didn't react," one European trader said.

20120313 1059 Palm Oil Related News.

Palm Oil Drops From Nine-Month High as Malaysian Reserves Climb
2012-03-12 10:38:34.395 GMT


By Ranjeetha Pakiam
    March 12 (Bloomberg) -- Palm oil dropped from a nine-month
high after stockpiles in Malaysia gained for the first time in
five months in February to stay above two million metric tons.
    May-delivery palm oil declined 1 percent to close at 3,320
ringgit ($1,096) a metric ton on the Malaysia Derivatives
Exchange. Futures reached 3,368 ringgit on March 9, the highest
price since June 7, and advanced 2.9 percent last week.
    Inventories increased 2 percent to 2.06 million tons from
January, the Malaysian Palm Oil Board said in a statement today.
That was more than the 1.9 million tons predicted in a Bloomberg
survey last week and higher than the 1.48 million tons in the
same period last year. Output fell 7.9 percent to 1.19 million
tons and exports shrank 12.6 percent to a one-year low of 1.21
million tons, it said.
    “The market was not expecting stocks to be this high,”
Gnanasekar Thiagarajan, a director at Commtrendz Risk Management
Services Pvt., said by phone from Mumbai today. “It will be
bearish. There could be a near-term correction.”
    The market would continue to look at the global economic
situation and the progress of soybean crops in South America,
said Gnanasekar. Palm oil may trade between 3,250 ringgit and
3,400 ringgit in the next month, he said.
    The March 9 report by the U.S. Department of Agriculture on
U.S. soybean inventories was also “bearish” for palm oil,
Chandran Sinnasamy, trading head at Kuala-Lumpur based LT
International Futures (M) Sdn., said by phone today. Soybeans
can be crushed to make soybean oil, a substitute of palm oil in
food and fuel.

                      Soybean Stockpiles

    U.S. soybean end-stockpiles estimates were unchanged from
the 275-million bushels forecast in February for the 2011-2012
marketing year, he said. “They cut the South American crop as
expected, but they didn’t increase the exports from the U.S. as
rising prices may curb demand, so they left their stocks
unchanged.”
    Malaysia’s palm oil exports jumped 30 percent to 444,259
tons in the first 10 days of March, from the same period in
February, surveyor Intertek said March 10. Shipments surged 33
percent to 448,615 tons in the first 10 days of March, estimated
Societe Generale de Surveillance today.
    Soybeans for May delivery were little changed at $13.38 a
bushel on the Chicago Board of Trade. They reached $13.555 on
March 9, the highest since Sept. 19. Soybean oil for the same
month dropped 0.4 percent to 54.04 cents a pound.
    Palm oil for delivery in September dropped 0.4 percent to
close at 8,530 yuan ($1,348) a ton on the Dalian Commodity
Exchange. Soybean oil for delivery in the same month ended 0.5
percent lower at 9,526 yuan a ton.

20120313 0937 Local & Global Market Related News.

Malaysia: Moderate growth in Jan IPI
Malaysia’s January industrial production grew at a moderate pace, in line with market expectations. It went up by 0.2% year-on-year in January, as polled by Business Times. The increase was due to the growth by the manufacturing index (1.2%) and electricity index (2.7%) while mining posted a decline of 2.7%. The Statistics Department in releasing the data said weakness in January could stem from fewer working days from an earlier Lunar New Year (versus Feb 2011). Considering January and February data in tandem will provide a better read on industrial production growth, it said. (Bloomberg)

The manufacturing sales rose 3.8% yoy to RM48.6bn in Jan (+1.1% to RM48.9bn in Dec 2011). On a mom basis, it decreased by 0.6% (+2.9% in Dec 2011). Total employees engaged in the manufacturing sector up 0.6% yoy to 1,02m in Jan (+0.6% to 1m in Dec 2011). Salaries & wages paid soared 4.1% yoy to RM2.5bn (+14.8% to RM2.6bn in Dec 2011). Average salaries & wages paid per employee rose 3.5% yoy to RM2,398 (+14.1% to RM2,592 in Dec 2011). Productivity increased by 3.2% to RM47,596 (+0.6% to RM48,714 in Dec 2011). (Department of Statistics)

Vietnam: Cuts benchmark rates to support growth amid slowdown
Vietnam cut its interest rates to support a slowing economy even as the nation faces Asia’s fastest inflation. The State Bank of Vietnam reduced the refinancing rate for the first time since 2009 to 14% from 15%, effective today, it said in a statement on its website yesterday. It also cut the discount rate to 12% from 13% and the dong deposit cap for terms of one-month and above to 13% from 14%. (Bloomberg)

India: Industrial output growth beats estimates
India’s industrial production unexpectedly rose at the fastest pace in seven months in January, weathering the highest interest rates since 2008 and weaker global growth. Output at factories, utilities and mines advanced 6.8% from a year earlier, after a revised 2.5% climb in December, the Central Statistical Office said in a statement in New Delhi yesterday. The figure exceeded all 26 estimates in a Bloomberg News survey. A history of swings in the data may prevent the report from easing concern that the cost of credit and the impact of Europe’s debt crisis are dimming India’s economic outlook. (Bloomberg)

Indian car sales rose 13% yoy in Feb (7.2% in Jan), the steepest pace of growth since Apr 2011, to a record 211,402 units from 186,890 a year earlier. (WSJ)

China's national fiscal revenue rose 13.1% yoy to Rmb2.09tr (US$330.27bn) in the first two months, decelerating from 24.8% recorded last year, but higher than 10% recorded in the previous quarter. (Xinhua)

People’s Bank of China Governor Zhou Xiaochuan deemed the trade deficit in the first two months of this year, as well as its impact on the exchange rate of the yuan in the foreign exchange market, "a good thing" for China as the yuan‘s level is increasingly dependent on the supply-and-demand relation in the market. (People Daily Online)

Japan’s Cabinet Office said the index of sentiment among households made up of two or more people fell 0.5 point from the previous month to 39.5 in Feb due to worries about salaries and the employment picture. (AFP)

Japan's core machinery orders rose 3.4% mom in Jan (-7.1% in Dec), the Cabinet Office said. Economists had expected a 2.0% gain. On a yoy basis, the measure came in at 5.7% (6.3% in Dec), exceeding the median forecast of 4.4%. (AFP)

Japan’s domestic corporate goods price index rose 0.6% yoy and 0.2% mom in Feb (0.5% yoy and -0.1% mom in Jan), matching the median forecasts. (Bloomberg)

EU: Ministers head toward final approval of second Greek rescue
Euro-area finance ministers will move toward completing the next Greek bailout this week as they meet in Brussels last night. Luxembourg Prime Minister Jean-Claude Juncker, who heads the group of euro-region finance ministers, said he had “no doubt” that a second bailout program for Greece would be approved and he expected a final decision on 12 March. (Bloomberg)

EU: Italy GDP data confirms 'technical' recession
Italy's gross domestic product declined by 0.7% in the fourth quarter, compared to the three months in the prior quarter, Italy's statistical office, ISTAT. Compared to the year-ago quarter, GDP fell 0.4%. The figure was in line with expectations and confirmed a preliminary estimate released in February. The data confirmed that Italy has now experienced two consecutive quarters of shrinking GDP, the technical definition of an economy entering recession. (Bloomberg)

US: Federal Reserve to test 19 banks’ capital against US recession scenario
The Federal Reserve will show how the capital of 19 US banks might fare through a deep recession and a second housing crisis when they unveil stress-test results in three days. The tests will show results for revenues, capital ratios and profits or losses at each firm over a nine-quarter period, the Fed said in a paper released yesterday in Washington. The results will be released on 15 March. Templates included in the Fed release yesterday showed an array of categories it plans to disclose, from trading and counterparty losses to credit cards and first-lien mortgages. (Bloomberg)

US commercial lenders purchased US$78.2bn of Treasuries and securities of agencies in Jan and Feb, compared with US$62.6bn in all of 2011, bringing their holdings to US$1.78tr, Federal Reserve data show. Deposits exceeded loans by a record US$1.63tr in Feb, up from US$1.17tr in Jan 2011. (Bloomberg)

The US government’s budget deficit widened by 4.1% yoy to US$231.7bn in Feb (-US$22.5bn in Jan) as revenue fell. Economists had forecast the budget deficit would widen to US$229bn in Feb. (Bloomberg)

20120313 0937 Malaysia Corporate Related News.

EPF goes on selling spree
The Employees Provident Fund (EPF) sold a whopping RM441.09m worth of Malaysia-listed equities on 7 March alone, in line with its trend of active disposals over the last two weeks. Bursa Malaysia filings showed that on 7 March, the EPF along with its portfolio managers dumped a total 83.68m shares on the open market, substantially more than the 7.4m shares it had acquired the same day. The number of shares disposed of represents almost half the total volume traded that day, which stood at 173.14m shares. Fund managers reckon that the fund was merely taking profit but its aggressive selling had dragged the FBM KLCI down from its all-time high last week. (StarBiz)

REDtone eyes government projects worth RM800m
REDTONE International, a communications solutions provider, is bidding for government projects worth up to RM800m. REDtone managing director Datuk Wei Chuan Beng added that he expected revenue contribution from the public sector to be more "balanced" over the next few years. Currently, contracts from the government and related agencies contribute about 30% of the company's revenue.(BT)

PFCE in RM300m deal to transform into O&G player
Loss-making PFCE will transform into an oil and gas (O&G) counter after DAT Group SB proposed to inject its wholly-owned unit, PFC Engineering SB (PESB) into the former for RM300m. DAT, which is owned by PFCE’s group executive chairman Datuk Abu Talib Mohamed and son Muammar Gadaffi, will be issued 500m new PFCE shares priced at RM0.60 per share, which will result in them controlling 91% of PFCE. In a statement yesterday, PFCE said the deal will give it an immediate presence in the O&G industry. (Malaysian Reserve)

Kimlun secures RM152m job
Kimlun Corp has secured two construction projects in Johor Bahru totaling RM151.6m, bringing the construction company’s estimated outstanding orderbook to about RM1.5bil. The first project is the construction of service apartments and ancillary buildings and the second, the construction of 244units of houses. The first project’s total contract sum is RM114.7m and is expected to be completed in Feb 2014. The second project total contract sum is RM36.9m, with an estimated time of completion in Sept 2013. (Malaysian Reserve)

1Bestarinet to kick off soon
The government’s 1Bestarinet project is in the process of being implemented by YTL Communications SB (YTL Comms), a unit of YTL Power International. Although no official announcement has been made by the government on the project award, sources said that YTL Comms has already rolled out the service to a number of schools in the Klang Valley, having started doing so from Dec 2011. (Financial Daily)

AirAsia X axes NZ route
AirAsia X SB will stop flying the loss-making KL-Christchurch route effective end-May due to volatile jet fuel prices. Christchurch will be the fourth destination the long-haul low-cost carrier has withdrawn from in recent months after announcing that it would stop flying to London, Paris, Delhi and Mumbai. AirAsia X CEO Azran Osman-Rani told The Edge yesterday that the capacity from Christchurch would be redeployed to Taipei, Perth and other routes. He said in a statement that since the suspension of its flights to Europe and India, the airline has increased flight frequencies to Tokyo and a new route to Sydney. (Financial Daily)

Firefly will reintroduce the fuel surcharge for flight bookings made from March 21 to counter high jet fuel prices. A fuel surcharge of RM10 for domestic travel will be imposed for each leg and RM20 for regional routes. (Bernama)

Hong Leong Bank announced its proposal to dispose of MIMB Investment Bank to its sister company, Hong Leong Capital (HLC). The selling price was not stated in the announcement. HLC will then transfer its investment banking business from Hong Leong Investment Bank (HLIB) to MIMB. HLIB, which will be a shell company, will be acquired by Hong Leong Bank. (BMSB)

DRB-HICOM said it is open to the possibility of collaborating with other vehicle manufacturers, including those from China and other European countries, as it undertakes to optimise its assembly lines and transform the facility in Pekan, Pahang, into a regional and global automotive hub. On recent news reports speculating on the potential joint venture between its partner Volkswagen Group Malaysia and Proton in an attempt to uplift the latters' perceptive image, build quality and production, Datuk Seri Mohd Khamil Jamil reaffirmed his stance that rebadging of Proton will not happen while he is at the helm. (Malaysian Reserve)

Datuk Mohd Khamil Jamil, managing director of DRB-Hicom, is strongly tipped to take charge of national carmaker Proton Holdings, people familiar with the matter said. Business Times was told that Mohd Khamil‘s name was among the three names put forward for the post of executive chairman. Earlier, there were reports that Tengku Tan Sri Mahaleel Tengku Ariff would make a comeback to the company that he once led. (BT)

Khazanah Nasional has sold its entire 4.17% stake in Yes Bank Ltd for about US$105m, reportedly following an unsuccessful attempt to raise its stake in the Indian private lender to 10%. Since the Reserve Bank of India norms do not allow more than 5% stake by a single entity, Khazanah decided to monetised its investment at a phenomenal premium of 150%. (Financial Daily)

Paramount Corp has acquired a 30-acre (12 ha) freehold industrial tract in Selangor for RM125m to develop semi-detached factories. The proposed development is expected to start in 2013 spanning over seven years. The acquisition will be funded by a mix of internal funds and borrowings. (Financial Daily)

Dayang Enterprise Holdings Bhd‘s Tengku Datuk Yusof Tengku Ahmad Shahruddin has recently disposed of two million shares, or a 0.36% stake, in the company. The transaction was done last Friday at an average price of RM2.22 per share. Yusof still held a direct interest of 10.07% stake. (Star Biz)

Qi Group of Companies, which has presence in over 100 countries, will consider listing its multi-level marketing (MLM) business, QNet Holdings, on Bursa Malaysia in two years' time when market conditions improve, said its director for investment management Kuna Senathirajah. QNet is the flagship subsidiary and main revenue generator of the Qi Group, which is helmed by Malaysian entrepreneur Datuk Vijay Eswaran.(Sun)

20120313 0929 Global Market Related News.

Asia Stocks Advance on Greek Aid, Central Bank Decisions (Source: Bloomberg)
Asian stocks rose, with the benchmark index set to gain for a third day in four, amid optimism euro-area finance chiefs will complete a second Greek bailout, and before policy announcements by the Bank of Japan and U.S. Federal Reserve today. Nintendo Co. (7974), a manufacturer of game consoles that gets a third of its sales in Europe, rose 1.7 percent in Osaka. Qantas Airways Ltd., an Australian carrier, gained 3.8 percent after Macquarie Group Ltd. raised its rating to “outperform,” citing the nation’s strengthening currency to offset fuel costs. Daewoo Shipbuilding & Marine Engineering Co., a crude oil tankers maker, increased 2.8 percent in Seoul after HI Investment raised its target price, citing possible orders for oil rigs.
“It seems like the Greek bond deal is going through; that issue is off the table, at least for the time being,” said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion. “I wouldn’t expect much out of the BOJ, and obviously people will wait and see what the Fed says.” The MSCI Asia Pacific Index rose 0.4 percent to 126.67 as of 9:49 a.m. in Tokyo, with more than three stocks climbing fpor each that declined. All 10 industry groups in the measure advanced.

Japan’s Nikkei 225 Reaches Seven-Month High on Optimism for Greek Rescue (Source: Bloomberg)
March 13 (Bloomberg) -- Japanese shares rose, with the Nikkei 225 Stock Average (NKY) headed for its highest close since August, amid optimism euro-area finance chiefs will complete a second Greek bailout this week and before policy announcements by the Bank of Japan and the Federal Reserve today. Nintendo Co. (7974), a manufacturer of game consoles that gets a third of its sales in Europe, rose 1 percent. Mizuho Financial Group Inc. (8411) led gains among banks. Chemical maker Asahi Kasei Corp. (3407) fell 3.1 percent after agreeing to buy U.S.-based Zoll Medical Corp. for $2.2 billion. The Nikkei 225 Stock Average rose 0.5 percent to 9,934.93, its highest since Aug. 1, as of 9:18 a.m. in Tokyo. The broader Topix Index gained 0.2 percent to 847.14 after falling 0.4 percent yesterday.
“It seems like the Greek bond deal is going through. That issue is off the table, at least for the time being,” said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion. “I wouldn’t expect much out of the BOJ, and obviously people will wait and see what the Fed says.”

U.S. Stock Volume Lowest of Year as S&P 500 Gain Fails to Awaken Investors (Source: Bloomberg)
Trading (MVOLUSE) on American equity exchanges fell to the lowest level of the year today as enthusiasm waned among investors even after the Standard & Poor’s 500 Index rallied 25 percent in five months. Shares changing hands on all exchanges fell 16 percent to 5.23 billion today from March 9, while S&P 500 composite volume slipped 17 percent to 2.17 billion shares, data compiled by Bloomberg show. Those are the lowest daily levels excluding holiday weeks since Bloomberg began tracking the data in 2008. A rally that has restored more than $3.2 trillion into U.S. equities has failed to lure investors following one of the most volatile years on record. While the S&P 500 reached its highest level since June 2008 on March 1 and has had its best annual start since 1998, individuals are shunning equities after they were burned in 2011 by Europe’s debt crisis, according to Mark Turner, head of U.S. sales trading at Instinet Inc. in New York.
“I don’t think investors are completely convinced,” Turner said in a telephone interview. “Today was extremely light volume because it was quiet in Europe over the weekend and there was no major headlines coming out of Europe. Money has been shifting to bonds out of equities for some time now. There’s a host of different reasons. Take your pick.”

Dow Theory Signals Sluggish Economic Recovery (Source: Bloomberg)
Transportation and industrial shares are diverging in the U.S., a signal that equity investors are starting to agree with what the bond market already knows: this economic recovery will remain sluggish for months to come. The Dow Jones Transportation Average fell 4.2 percent from its six-month high on Feb. 3 through today, while the Dow Jones Industrial Average (INDU) added 0.8 percent. The gauge of 20 shipping companies from FedEx Corp. to United Continental Holdings Inc. (UAL) peaked before the rest of the market when the technology bubble popped in 2000 and began slipping into a bear market three months before broader benchmark indexes in 2007.
While Laszlo Birinyi, the founder of Birinyi Associates Inc., says falling transport stocks don’t signal an end to the three-year bull market that doubled the Standard & Poor’s 500 Index (SPX), money managers at Robert W. Baird & Co. and Legg Mason Inc. say the 27 percent rise in the index since October may have gone too fast. Transport stocks are falling as 10-year Treasury yields (USGG10YR) stay near 2 percent, with economists forecasting the slowest post-recession recovery since World War II. “In a healthy market, everything is going in the same direction,” Bruce Bittles, chief investment strategist at Milwaukee-based Robert W. Baird, which oversees $85 billion, said in a March 6 phone interview. “When that starts to diverge, that raises a flag that potential trouble may be brewing.”

Most U.S. Stocks Fall in Thinnest Trading Day of 2012 on China Slowdown (Source: Bloomberg)
Most U.S. stocks retreated, capping the thinnest trading day in 2012, as investors weighed whether a Chinese slowdown will lead to an easing of monetary policy. Newmont Mining Corp. (NEM) and Schlumberger Ltd. (SLB) lost more than 1.9 percent as commodities fell. Financial companies slid on concern about how banks will perform in Federal Reserve stress tests and as the cost of insuring against default on European sovereign bonds rose to the highest in eight weeks. Gauges of utility and telephone providers in the S&P 500, which are least- tied to economic growth, gained. Apple Inc. (AAPL) rose 1.3 percent. Seven stocks declined for every five rising on U.S. exchanges at 4 p.m. New York time, with about 5.2 billion shares changing hands. The S&P 500 advanced less than 0.1 percent to 1,371.09 today. The Dow Jones Industrial Average increased 37.69 points, or 0.3 percent, to 12,959.71. The Russell 2000 Index of smaller companies retreated 0.3 percent to 814.29.
“The U.S. is in good shape, yet China is a big question mark,” said Erick Maronak, chief investment officer of Victory Capital Management Inc. in New York. His firm oversees $28 billion. “How much will they have to ease to get things back on track? Europe is still going to be a huge work in progress. Now that there’s some greater visibility on the Greece situation, everyone starts looking at dominoes two and three.”

European Stocks Fall on China Exports Data; Temenos Slips (Source: Bloomberg)
European (SXXP) stocks retreated, halting a three-day rally for the Stoxx Europe 600 Index, as a report showed export in China, the world’s second-largest economy, grew at a slower pace than forecast. Mining companies fell with metal prices. Temenos Group AG (TEMN) dropped 4.9 percent after the company terminated merger talks with Misys Plc. (MSY) Banca Monte dei Paschi di Siena SpA (BMPS) sank 5 percent after its biggest investor reached an agreement with banks that hold part of its stake as collateral on a loan. The Stoxx 600 fell 0.2 percent to 264.87 at the close. The benchmark measure has still rallied 8.3 percent so far this year as the European (SXXP) Central Bank disbursed 1 trillion euros ($1.3 trillion) of loans to the euro area’s banks and U.S. economic reports beat estimates. The gauge rallied at the end of last week, trimming its weekly drop to 0.7 percent, as a release showed that the U.S. economy added more jobs than predicted and Greece’s private creditors agreed to a debt swap.
“China really is the only potential negative out there,” said Steve Goldman, managing director at Kapstream Capital in Sydney which manages about $3.2 billion in assets on Bloomberg Television. “We’ve seen a good start to the year and there is a lot less risk to the global economy than there was three, four, five months ago.”

Emerging-Market Stocks Decline as Chinese Data Signals Economic Slowdown (Source: Bloomberg)
Emerging-market stocks posted their biggest decline in almost a week as Chinese trade and retail sales data signaled a deepening slowdown in the global economy. The MSCI Emerging Markets Index (MXEF) declined for the first time in three days, losing 0.9 percent to 1,050.50 at the close in New York. Cia. Brasileira de Distribuicao Grupo Pao de Acucar, Brazil’s biggest retailer, led declines on Brazil’s Bovespa (IBOV) index among companies that depend on consumer demand. LG Chem Ltd. (051910), the chemical maker that counts China as its biggest export market, retreated 3.5 percent in Seoul. China had the largest trade deficit in at least 22 years last month, the weakest gain in factory production between January and February since 2009, and year-to-date retail sales missed analysts’ estimates, government data released March 9 and 10 showed. European finance ministers are moving toward signing off on the 130 billion-euro ($170 billion) aid package for Greece.
“Global demand is abating and China is one of the major export countries, so of course it’s very much affected by this weakening general global demand,” Daniel Lenz, chief emerging market strategist at DZ Bank AG, said by phone from Frankfurt. “China is still growing strongly in comparison to other countries, and there is of course more risk to the downside on exports than on imports.”

Dollar Trades Near 10-Month High Against Yen Before Fed’s Policy Meeting (Source: Bloomberg)
The dollar traded 0.3 percent from a 10-month high against the yen as evidence of a U.S. economic recovery tempered speculation that the Federal Reserve will signal additional easing at a policy meeting today. Demand for the yen was limited amid expectations the Bank of Japan (8301) will keep interest rates and the size of its asset- purchase fund unchanged at a two-day meeting that ends today. The euro remained higher against the dollar after European Union Economic and Monetary Affairs Commissioner Olli Rehn said he was confident that European Union leaders would reach an agreement on increasing the size of its crisis fighting funds this month. “Recent U.S. data may be strong enough to persuade policy makers to be less cautious about the pace of the recovery,” said Toshiya Yamauchi, a senior analyst in Tokyo at Ueda Harlow Ltd., which provides currency margin-trading services. “The market is reducing bets for another round of quantitative easing, pushing the dollar higher.”
The dollar rose 0.2 percent to 82.37 yen at 8:48 a.m. in Tokyo from the close yesterday, after touching 82.65 on March 9, the highest since April 27. The currency was little changed at $1.3170. The yen slid 0.3 percent to 108.48 per euro.

Euro Finance Chiefs Give Political Backing to $170 Billion Greek Aid Plan (Source: Bloomberg)
Euro-area finance ministers signed off on a second Greek bailout, clearing the way for the first payment from the 130 billion-euro package ($170 billion) to be made this month. “The new Greek program is not only in its starting blocks, but has been politically adopted tonight by the euro group,” Luxembourg Prime Minister Jean-Claude Juncker, who heads the group of 17 finance ministers, said in Brussels late yesterday. Euro finance officials will give a formal approval on March 14, a day before the International Monetary Fund board votes on its contribution. Greece is now in line to receive more than 100 billion euros in the next three years from the European Financial Stability Facility, the euro region’s temporary rescue fund, starting with payments of 5.9 billion euros in March, 3.3 billion euros in April and 5.3 billion euros in May, EFSF Chief Executive Officer Klaus Regling said.
The agreement caps months of grueling negotiations between Greece, the IMF and euro-area authorities over the successor to an initial 2010 bailout that failed to halt the debt crisis. To win new the aid package, Greece had to sign on to deep budget cuts and complete the world’s largest-ever sovereign debt restructuring.

Outlook for U.S. Consumer Spending Brightens on Employment Gains: Economy (Source: Bloomberg)
Household spending may be about to pick up after stagnating for three straight months as employment and incomes climb and the weather turns more seasonable, giving the U.S. economy a lift. “The situation for consumers has improved significantly over the last several months,” said Harm Bandholz, chief U.S. economist at UniCredit Group in New York. “Spending is bound to accelerate, the most important driver being improvement in the labor market.” Employers boosted payrolls in February, capping the best six-month streak of job growth since 2006, Labor Department data showed last week. Consumer spending on utilities will probably return to normal after dropping from November through January because of unseasonably warm weather.
“Given the labor market and some of these weather factors, there is reason to be optimistic,” said Troy Davig, a senior economist at Barclays Capital Inc. in New York. “The warm weather has held down consumer spending, basically because of the direct impact of households purchasing less energy to heat their homes. That’s generally positive for the consumer, but the immediate impact has depressed consumption.”

Fed to Test 19 Banks’ Capital Against Recession Scenario (Source: Bloomberg)
The Federal Reserve will show how the capital of 19 U.S. banks might fare through a deep recession and a second housing crisis when they unveil stress-test results in three days. The tests will show results for revenues, capital ratios and profits or losses at each firm over a nine-quarter period, the Fed said in a paper released today in Washington. The results will be released at 4:30 p.m. on March 15. Templates included in the Fed release today showed an array of categories it plans to disclose, from trading and counterparty losses to credit cards and first-lien mortgages.
“Strong capital levels are critical to ensuring that banking organizations have the ability to lend and to continue to meet their financial obligations, even in times of economic difficulty,” the Fed said in a statement. “The supervisory stress scenario is not the Federal Reserve’s forecast for the economy, but was designed to represent an outcome that, while unlikely, may occur if the U.S economy were to experience a deep recession at the same time that economic activity in other major economies contracted significantly.” The KBW Bank Index of 24 U.S. lenders has advanced 15 percent this year as investors bet a strengthening economy will help firms boost earnings. Concern that the nation’s banks may be damaged by Europe’s debt crisis helped drive down the index 25 percent in 2011, its worst annual performance since the 2008 credit crisis.

China Slowdown Bolsters Case for Monetary Easing as Yuan Slides: Economy (Source: Bloomberg)
China’s economic growth slowed in the first two months of the year, with both exports and domestic demand moderating faster than analysts had forecast, building the case for Premier Wen Jiabao to accelerate stimulus measures. The world’s second-largest economy had the biggest trade deficit last month in at least 22 years, the weakest January- February factory-production gain since 2009 and retail sales below the median economist estimate, government data showed March 9 and 10. Central bank Governor Zhou Xiaochuan said today that the nation has large scope in theory for lowering banks’ reserve requirements, and the yuan tumbled after officials weakened the reference rate. Moderating inflation and Europe’s faltering export demand may encourage the government to loosen credit and pause on currency gains, with the yuan down 0.5 percent this year against the dollar after climbing 4.5 percent in 2011.
“We are likely to see another cut sometime soon” in the required-reserves ratio, Brian Jackson, a Hong Kong-based economist with Royal Bank of Canada, said in a Bloomberg Television interview. “If you look at the January and February numbers combined, whether it’s trade, whether it’s industrial production, it all shows a pretty clear picture of things continuing to slow down since the start of the year.”

India’s Industrial Output Growth Beats Estimates, Spurring Sensex Advance (Source: Bloomberg)
India’s industrial production unexpectedly rose at the fastest pace in seven months in January, weathering the highest interest rates since 2008 and weaker global growth. Output (INPIINDY) at factories, utilities and mines advanced 6.8 percent from a year earlier, after a revised 2.5 percent climb in December, the Central Statistical Office said in a statement in New Delhi today. The figure exceeded all 26 estimates in a Bloomberg News survey. A history of swings in the data may prevent the report from easing concern that the cost of credit and the impact of Europe’s debt crisis are dimming India’s economic outlook. The central bank, which lowered lenders’ reserve requirements last week and reviews rates on March 15, has signaled readiness to join nations from Brazil to the Philippines in cutting borrowing costs as expansion slows and inflation eases.
“The production figures are very volatile and I wouldn’t give too much weight to this number,” said Madan Sabnavis, chief economist at Credit Analysis & Research Ltd. in Mumbai. “The overall growth trend still remains weak. The Reserve Bank of India will wait until April to take any action on rates, and by then it will have more information on the budget deficit and inflation.”

BRICs Fastest Inflation Accelerating Puts Subbarao on Hold: India Credit (Source: Bloomberg)
Indian inflation, the fastest among the biggest emerging markets, is poised to accelerate as oil costs rise for a nation that depends on imports for 80 percent of its energy requirements, interest-rate swaps show. The cost of locking in rates for five years rose to 7.49 percent in Mumbai on March 9, the highest in almost five months, according to data compiled by Bloomberg. Wholesale prices rose 6.7 percent last month after increasing 6.55 percent in January, according to the median forecast of economists in a Bloomberg survey before data due on March 14. That would compare with levels of 6.2 percent in Brazil, 3.2 percent in China and 3.7 percent in Russia. Reserve Bank of India Governor Duvvuri Subbarao on March 9 unexpectedly slashed the amount of deposits lenders need to set aside as reserves to ease a cash squeeze in the banking system.
He will refrain from lowering borrowing costs at this week’s policy meeting, a separate survey showed, as this year’s 16.8 percent rise in Brent threatens to fuel inflation in a nation where 80 percent of the population lives on less than $2 a day. “Oil prices are becoming a big concern and will aggravate inflation,” Killol Pandya, the Mumbai-based head of fixed- income investment at the local unit of Daiwa Asset Management Co. that oversees $225 million, said in an interview on March 9. “A rate cut is unlikely to happen this month.”

Vietnam Cuts Benchmark Rates to Support Growth Amid Slowdown (Source: Bloomberg)
Vietnam cut its interest rates to support a slowing economy even as the nation faces Asia’s fastest inflation. The State Bank of Vietnam reduced the refinancing rate for the first time since 2009 to 14 percent from 15 percent, effective tomorrow, it said in a statement on its website today. It also cut the discount rate to 12 percent from 13 percent and the dong deposit cap for terms of one-month and above to 13 percent from 14 percent. Vietnam joins emerging markets from Thailand to Brazil in lowering borrowing costs as Europe’s sovereign-debt crisis and rising oil prices threaten expansion. The move contrasts with the nation’s so-called Resolution 11 policy passed a year ago, which aimed to rein in an inflation rate that remains above 16 percent even after easing for a sixth straight month in February.
“The rate cut aims to support growth, as inflation pressures have eased and liquidity in the banking system has improved,” Hai Pham, a Singapore-based analyst at Australia & New Zealand Banking Group Ltd., said before the decision. “The central bank is confident about the inflation trajectory.”

Euro Weakness Waning as Draghi Cash Prompts Forecasters to Drop Bear Views (Source: Bloomberg)
The world’s biggest banks are less pessimistic about the euro as the European Central Bank provides unlimited cash to the region’s financial system, Germany may avoid recession and Greece looks to complete the biggest sovereign debt restructuring in history. Strategists at Bank of America Corp. and Morgan Stanley raised their estimates for the euro this month, as the median estimates of more than 50 strategists surveyed by Bloomberg increased for the second and third quarters. The 17-nation currency is up about 1.3 percent from an almost 10-year low on Jan. 16 against nine developed-market peers. While the crisis that led to bailouts of Greece, Portugal and Ireland and the restructuring of Greek debt caused the euro to weaken 8.7 percent versus the dollar since August, traders who predicted a breakup of the single currency are being silenced.
ECB President Mario Draghi gave banks more than 1 trillion euros ($1.31 trillion) of three-year loans in December and February, and German business confidence rose to a  seven- month high. “We’ve been gradually feeling better about Europe,” David Woo, the global head of rates and currencies at Bank of America Merrill Lynch in New York, said in a telephone interview on March 2. Draghi’s loans have supported the euro, he said. “That combined with the fact that the global economic outlook has improved, including U.S. growth gaining momentum, has made us less bearish on the euro.”

Euro Ministers Head Toward Final Approval of Second Greek Rescue (Source: Bloomberg)
Euro-area finance ministers will move toward completing the next Greek bailout this week as they meet in Brussels tonight. Luxembourg Prime Minister Jean-Claude Juncker, who heads the group of euro-region finance ministers, said he had “no doubt” that a second bailout program for Greece would be approved and he expected a final decision on March 14. “As far as principles are concerned, there is no doubt that the second Greek program will be approved,” Juncker said today in Brussels before a meeting of the group. Ministers from the 17 nations that share the euro are gathering to review the 130 billion-euro ($170 billion) second package for Greece after bondholders agreed last week to take a loss on the country’s debt. They’re also looking at Spain’s budget-cutting efforts and Portugal’s aid program, underscoring their desire to prevent contagion.

20120313 0929 Global Commodities Related News.

Commodities Drop on Chinese Trade Deficit; U.S. Stocks Are Little Changed (Source: Bloomberg)
Commodities snapped a three-day advance and the yuan weakened after Chinese exports grew at a slower pace than forecast, fueling concern about the global economy. U.S. stocks and Treasuries ended little changed. The S&P GSCI Index of raw materials lost 0.4 percent as of 4:15 p.m. in New York and oil dropped 1 percent. The Standard & Poor’s 500 Index rose less than 0.1 percent to 1,371.09, while Exxon Mobil Corp. and Merck & Co. led the Dow Jones Industrial Average (INDU) up 37.69 points to 12,959.71. Ten-year Treasury note yields added less than one basis point to 2.03 percent. The yen strengthened against 12 of its 16 most-traded peers. The euro climbed 0.3 percent to $1.3158.
China weakened its daily fixing for the yuan by the most since August 2010 after reporting the biggest trade deficit in at least 22 years on March 10, sapping optimism that was spurred last week by stronger-than-forecast jobs data in the U.S. European finance ministers are meeting in Brussels today to complete the 130 billion-euro ($170 billion) aid package for Greece and discuss Spain’s budget-cutting efforts. “Commodity market watchers have cautioned quite some time ago that ‘as goes China so do commodities,’” Jon Nadler, an analyst at Kitco Inc. in Montreal, wrote in a note today. “When combined with the data concerning that country’s factory output and consumer retail activity, the conclusion that China is indeed experiencing notable difficulties is obviously not very hard to draw.”

Hedge Funds Trim Bullish Commodity Bets (Source: Bloomberg)
Hedge funds reduced bets on higher commodity prices for the first time in seven weeks after China cut its growth target, just as prices rallied on signs the U.S. economy is improving and Greece is containing its debt crisis. Money managers reduced combined bullish positions across 18 U.S. futures and options by 1.1 percent to 1.17 million contracts in the week ended March 6, Commodity Futures Trading Commission data show. Investors cut bets on copper by the most in two months and those on oil by the most since December. China uses more copper and energy than any other nation. Commodities fell 1.5 percent in the week ended March 6, a day after China cut its economic-growth target to 7.5 percent, from 8 percent, the lowest since 2004. Prices rebounded 2.1 percent in the following three days, extending this year’s advance to 9.7 percent, as Greece and bond investors agreed to the biggest sovereign restructuring in history and the U.S. added more jobs than economists were expecting.
“The economy is looking better, and there’s a general risk-on kind of sentiment,” said Mihir Worah, who manages Pacific Investment Management Co.’s $22 billion Commodity Real Return Strategy Fund from Newport Beach, California. “How do I think investor sentiment is? Certainly, they’re voting with their money, and we’re seeing steady inflows into our funds.”

Demand, Climate Change Threatens Water Resources - UN Report (Source: CME)
Rising food demand, rapid urbanization, and climate change are putting significant strain on global water resources, warns the latest edition of the United Nations World Water Development Report, issued by the U.N. Educational, Scientific and Cultural Organization, or UNESCO. "Freshwater is not being used sustainably, according to needs and demands," states UNESCO Director-General Irina Bokova and the Chair of U.N.-Water Michel Jarraud at the World Water Forum in Marseille, France Monday. "Accurate information remains disparate, and management is fragmented. In this context, the future is increasingly uncertain and risks are set to deepen." According to UNESCO's report, almost 1 billion people do not have access to safe drinking water, with sanitation infrastructure lagging growth of the world's urban population. The report estimates that the world will need 70% more food by the middle of the century, with demand increasing especially for livestock products.
"A surge in food production will lead to an increase of at least 19% in the water required for agriculture, which already accounts for 70% of freshwater use," said UNESCO. UNESCO warns that climate change will make a bigger impact on water resources near-term. "It alters rainfall patterns, soil humidity, glacier-melt and river-flow, and also causes changes to underground water sources. Already, water-related disasters such as floods or droughts are rising in frequency and intensity," warned UNESCO. By 2070, UNESCO predicts that water-stress will be felt in central and southern Europe, affecting the lives of up to 44 million people.

Corn (Source: CME)
US corn futures rise on tight cash markets and on speculation Chinese companies are buying US corn. Corn settles at the highest price for the front-month contract since Sept. 21. CBOT corn for March delivery was higher than May corn, which was higher than July corn, reflecting tight cash markets. Lack of official confirmation today weakened but didn't eliminate speculation on Chinese purchases. CBOT March corn ends up 17 1/2c or 2.7% at $6.71 1/2 a bushel. May corn up 14 1/2c at $6.59 1/2 a bushel.

Wheat (Source: CME)
US wheat futures end higher, boosted by rising corn prices and short-covering ahead of the March contract's expiration Wednesday. Wheat and corn are tied as the crops compete for acreage and can both be used as animal feed. CBOT May futures rise 8 1/4c to $6.51 1/4 a bushel while KCBT May climbs 12c to $6.96 and MGEX May jumps 14 1/2c to $8.19 1/2.

Rice (Source: CME)
US rice futures end higher, continuing to rebound from last week's slide to five-week lows. General strength in grain futures helped boost prices to one-week highs, analysts say. Futures also drew fundamental support from traders concerned about reduced acreage expectations for the coming planting season. Questions on the amount of rice that might be grown in the US amid drought issues in Texas and farmers in the Delta looking at the positive economic signals of seeding competing crops buoy prices, says Jack Scoville, analyst with Price Futures Group. CBOT May rice ended up 19c or 1.3% to $14.34 1/2/hundredweight.

Soy near 5-1/2 month top, wheat dips on US weather
SINGAPORE, March 12 (Reuters) - U.S. soybean futures edged higher, hovering near last week's five-and-half month high, boosted by strong Chinese demand and drought-reduced South American supplies.    Wheat inched down, pressured by favourable weather for hard red winter wheat across areas of the U.S. Plains. Corn was little changed after closing 1.5 percent less last week.
"Soy is the one that has some concerns on the supply side and if demand remains strong those issues will be real," said Brett Cooper, a senior manager of markets at FCStone Australia.

Manila sets March 19 tender for rice import rights
MANILA, March 12 (Reuters) - The Philippines' National Food Authority (NFA) said on Monday that it has set a March 19 tender for permits to import 190,000 tonnes of rice -- 38 percent of the approved maximum import volume of 500,000 tonnes for this year.
Private importers will be allowed tariff-free rice purchases in exchange for paying a service fee to the NFA, the state rice procurement agency. The minimum service fee has been set at 100 pesos ($2.34) per 50-kilogram bag of rice.

Climate, food pressures require rethink on water-UN
PARIS, March 12 (Reuters) - The world's water supply is being strained by climate change and the growing food, energy and sanitary needs of a fast-growing population, according to a United Nations study that calls for a radical rethink of policies to manage competing claims.
"Freshwater is not being used sustainably," UNESCO Director-General Irina Bokova said in a statement. "Accurate information remains disparate, and management is fragmented ... the future is increasingly uncertain and risks are set to deepen."

Vietnam to stockpile 1 mln T rice to avoid price falls
HANOI, March 10 (Reuters) - Vietnam's government has allowed rice exporters to stockpile an equivalent 1 million tonnes of milled rice for three months to help prevent prices falling during the peak of the harvest.
Member companies of the Vietnam Food Association, the industry body, will be able to buy rice, equivalent to 2 million tonnes of unhusked grain, between March 15 and April 30 and keep it in stock until June 15, Prime Minister Nguyen Tan Dung said.

Argentina tweaks system for corn exports
BUENOS AIRES, March 9 (Reuters) - Argentina's government is modifying its unpopular corn export system, scrapping incremental quotas that farmers said depressed prices but keeping a cap on total sales abroad to ensure domestic needs are met.
Agriculture Minister Norberto Yauhar said on Friday that officials will announce on April 18 the bulk of 2011/12 corn exports to be authorized. The remainder of what can be shipped abroad will be unveiled at a later date.

Argentina port strike hits 85 grain ships-exporters
BUENOS AIRES, March 9 (Reuters) - A week-long strike by specialized port workers has held up about 85 grains ships in Rosario port, the biggest agricultural hub in grains powerhouse Argentina, an exporters chamber said Friday.
The crews that guide ships through Argentina's ports and moor them walked off the job last week to demand that more staff be assigned during busy shifts.  

Argentina Grain Port Strike Moves Into Second Week (Source: CME)
A strike at Argentina's leading grain- and mineral-export ports entered its 11th day, stalling the shipment of hundreds of millions of dollars in goods. Operations at the numerous port complexes across the greater Rosario area are shut down, said Gabriel Albo, general manager of the San Lorenzo chamber of commerce. San Lorenzo is a key shipping hub just north of the city of Rosario. Most of the grain shipped from Argentina passes through the area and disruptions can have ripple effects across global grain markets. Argentina is the world's second-largest corn exporter, leads soymeal and soyoil exports, and ranks third in soybean shipments. "Last week was really complicated, with a lot of boats affected," said an executive at one of the country's largest grain exporters. The corn and soybean harvests are just kicking off, with the crops starting to make their way to port, piling on the pressure for exporters to reach a quick deal.
The SOMU merchant marine union and exporters were planning on sitting down to talks later Monday in a bid to break the impasse, Albo said. SOMU says staffing is insufficient at the port complexes. The directors of SOMU and the grain-export chamber were not immediately available for comment. The government is expected to step in and supervise mandatory arbitration to force a deal and reopen the ports, said the export-company executive. The strike has left 85 boats stranded, waiting to dock or set sail, the private ports chamber CPPC said in a statement. That has stalled the loading of at least $400 million in agricultural goods, CPPC said in the statement issued jointly with the grain-export chamber CEC and the vegetable-oil-export chamber Ciara. So far, exporters have suffered losses of about $5 million due to the stoppage, according to the chambers.

Milk Price Slumping as Record Profit Spurs Expansion of Herds: Commodities (Source: Bloomberg)
Record dairy profits and milder weather are leading to a surge in milk supplies from Auckland to California, turning last year’s best-performing commodity contract into one of the worst of 2012. Output in the U.S., the world’s largest producer, will advance 1.8 percent to a record 199.7 billion pounds (90.6 million metric tons) in 2012, the Department of Agriculture estimates. Futures traded on the Chicago Mercantile Exchange already fell 29 percent from a four-year high in August and may drop another 7.8 percent to $14.25 per 100 pounds by July, the median of six analyst estimates compiled by Bloomberg shows. An estimated 30 percent jump in U.S. dairy exports led to the most profitable year ever for farmers, who expanded herds that now are the biggest since May 2009, USDA data show. Yields reached a record during an unusually mild winter. Supply is also rising in Australia and New Zealand, the largest exporter, and dairy was the only food cost tracked by the United Nations to decline last month.
“This blasted weather that most people have enjoyed, the dairy cows have really enjoyed it,” said Bill Brooks, an economist for INTL FCStone Inc. in Kansas City, who grew up on a dairy farm in Missouri and has covered the industry for two decades. “We’re going to see more milk production.”

Fonterra Cuts Forecast, Warns on Prices (Source: CME)
New Zealand's milk giant Fonterra Co-Operative Group Ltd., producer of about a third of the world's traded dairy products, forecast a lower payout to farmers for the season ending May 31 and said global uncertainty and concerns over China's economic outlook means dairy prices are likely to remain under pressure until at least mid-2012. Fonterra Chief Executive Theo Spierings said "global markets seem to be reacting to the ongoing economic difficulties in Greece, the potential for conflict in the Middle East and China's reduced growth forecasts." The revised payout, which came on the heels of news that China swung to a massive trade deficit in February, put added pressure on the New Zealand dollar. At 3:07 p.m. local time, it was trading at US$0.8174 versus US$0.8206 prior to Fonterra's announcement and off the six-month high of US$0.84711 hit Feb. 29.
The revised payout will be NZ$6.75-NZ$6.85 a share, comprising a lower Fonterra Farmgate milk price of NZ$6.35 a kilogram of milk solids, down from the prior forecast of NZ$6.50. Its forecast distributable profit range of NZ$0.40-NZ$0.50 a share is unchanged. Goldman Sachs Economist Philip Borkin said the revised payout will likely reduce total dairy farm cash income for the cooperative's 10,500 farmer shareholders by around NZ$200 million. Markets keep a close eye on Fonterra, as any significant slide in agricultural commodity prices will weigh on New Zealand's economy as it struggles to gain traction after a prolonged downturn and a series of devastating earthquakes in the Canterbury region of South Island. Dairy accounts for nearly 25% of the country's NZ$45 billion (US$36.96 billion) in exports. Fonterra Chairman Sir Henry van der Heyden said the New Zealand dollar's continuing strength, higher levels of global milk production, and uncertainties in international markets led to the decision.
Last week Ian Palliser, director of optimisation, trading and sourcing at Fonterra, told Dow Jones Newswires that abundant milk supply out of New Zealand, Europe, the U.S., Australia and South America was a factor weighing on the milk price, and he expects the trend to continue. Mr. Van der Heyden said prices have fallen in five out of the last six biweekly auctions held on Fonterra's online trading platform. Its trade-weighted index, which covers a variety of products and contract periods, is down 5.7% since Fonterra opted to raise its payout forecast in December. ANZ Rural Economist Con Williams said the combination of weaker in-market prices and the higher New Zealand dollar were the main factors, with it likely that "a lot of the downside has been from the higher New Zealand dollar." The New Zealand dollar is around 8% higher against the U.S. dollar since Fonterra lifted its forecast payout in December.
Mr. Borkin said Fonterra's announcement is consistent with comments made last week by Reserve Bank of New Zealand Governor Alan Bollard, when he highlighted considerable concern over the high New Zealand dollar and the impact this could have on growth. The central bank held the benchmark interest rate at 2.50% and pushed out its rate increase track, warning the strength of the local currency was curbing the need for future rate increases.

Indian ministers to review cotton exports in 2 weeks
NEW DELHI, March 12 (Reuters) - A panel of ministers will likely review a halt on fresh cotton exports from India in two weeks, Trade Secretary Rahul Khullar told reporters on Monday.
India's government has flip-flopped on the issue of banning cotton exports. After saying it was lifting a ban on overseas sales of the fibre on the weekend, Khullar said on Monday no fresh exports would be allowed and only the quantity permitted to be sold before the ban will be allowed to be shipped.

India not to allow fresh cotton exports-govt
NEW DELHI, March 12 (Reuters) - India will not allow any fresh exports of cotton and only the quantity permitted before the government imposed a ban on overseas sales will be allowed to be shipped, the trade secretary said on Monday.
"No new registration certificates will be issued," Rahul Khullar told reporters, a day after the government announced the lifting of a controversial ban on cotton exports at a time when the global market is over-supplied.

Colombia's coffee output, exports fall in Feb-growers
BOGOTA, March 9 (Reuters) - Colombia's coffee production in February fell 25 percent from a year earlier to 571,000 60-kg bags, the eleventh consecutive monthly decline, due to the continued effects of heavy rains, the country's coffee federation said on Friday.
The world's top producer of high-quality Arabica beans in 2011 posted a third consecutive year of lower-than-expected coffee output as bad weather, fungus and a tree renovation program keep output below historic averages of 11 million bags.

India Rolls Back Cotton-Export Ban (Source: CME)
India will rescind a ban on cotton exports that was imposed last week, Trade Minister Anand Sharma said in a statement. "Keeping in view the facts, the interests of the farmers, interest of the industry, trade, a balanced view has been considered by the [ministerial panel] to roll back the ban and a formal order will be made public [Monday] by the government," he said. The government didn't give further details Sunday about the rollback. The trade ministry banned cotton exports on March 5 for a second time in nearly two years, citing concerns that lower supplies could put upward pressure on local prices. A ministerial panel reviewed the ban Friday after Farm Minister Sharad Pawar raised objections to the move, saying it would harm farmers, but no new decision had been announced immediately after the meeting.
In addition to the opposition by the farm minister, parliamentary representatives from India's largest cotton-growing province, Gujarat, had voiced their concerns to the prime minister about the export ban. "While we welcome the decision and thank the government for quickly reviewing the decision, we would like to see the details of the order before commenting," said Dhiren Sheth, president of the Cotton Association of India. "We hope that it's a complete lifting of the ban and not a partial one." On Friday, the government had partially relaxed the restriction on cotton exports by allowing shipments of the consignments for which paperwork had been completed by March 4, the day before the ban was imposed. In India, an exporter must register a shipment's quantity with the government and obtain customs clearance before shipping cargo.
The country is the world's second-largest cotton exporter after the U.S. The ban drove up cotton prices on the ICE Futures exchange in the U.S., but prices eased when a review of the ban was announced. In addition to domestic opponents of the ban, the China Cotton Association strongly protested the move, describing it as a "no-win" decision that would seriously disrupt international trade. China is the largest importer of Indian cotton, taking one million metric tons in 2011. The Trade Ministry said last week that the ban was imposed because exporters had already shipped 9.4 million bales of cotton, more than the 8.4 million bales of exports projected for the marketing year that started Oct. 1. One bale is equal to 170 kilograms.

Ghana: GMO Seeds See Cotton Production Increasing To 60,000 Tons This Year (Source: CME)
Cotton production in Ghana will rise to 60,000 metric tons by the end of this year, from 17,000 tons last year, and 3,000 tons in 2010, following the introduction of genetically modified seeds after the country's parliament passed the required legislation, Robert Tandoh, a director of the ministry of trade and industries, said. Ghana is aiming at 60,000 tons by the end of this year, Tandoh said, although "that would depend on our production level of 1,000 kilograms per hectare and we have about 60,000 hectares under cultivation." "One of the problems that has affected production so far is the lack of improved seeds and we hope to improve yields with GMO seeds. Currently, the farmers are producing between 1000 kilograms per hectare and we want to further increase that," he added. Minister of trade and industry, Hannah Tetteh, has attributed the revived interest in cotton production to the incentive of good pricing.
Officials of the cotton sector say since the introduction of cotton in the country as a cash crop in the 1960s, the country produced 435,295 tons between 1968 and 2005, whereas Burkina Faso in the same period produced 713,000 tons.

Rising gasoline prices point to mid-year slowdown
--John Kemp is a Reuters market analyst. The views expressed are his own--
LONDON, March 9 (Reuters) - Analysts at leading banks have been out in force to reassure investors the U.S. economy is in better shape to weather rising gasoline prices this year than in the first half of 2011 or 2008, when increases at the pump helped push the economy into a slowdown.
Many commentators have pointed to the continuing robustness of data on employment and confidence to argue the U.S. economy will shrug off rising fuel prices.

Brent crude falls towards $125 as China data spur demand worry
SINGAPORE, March 12 (Reuters) - Oil fell for the first time in four sessions, with Brent slipping towards $125 as weak Chinese exports raised fears about global demand and offset the support provided by a better outlook for the U.S. economy and Middle East supply concerns.
"It's hard for prices to rise sharply higher, although they are well supported because of the Iran situation and better economic data from the United States," said Ken Hasegawa, a Tokyo-based commodity sales manager at brokerage Newedge Japan.  "Everyone worries about expensive gasoline in the United States which might hurt economic growth," Newedge's Hasegawa said, adding that prices were unsustainable and could correct in the next few months.

Saudi to supply full April crude to Asia -source
TOKYO, March 12 (Reuters) - Saudi Arabia, the world's top crude exporter, will supply full contracted volumes of crude oil in April to at least one Asian term buyer, unchanged from March, an industry source familiar with the matter said on Monday.
State-run Saudi Aramco made no changes to its monthly allocations of light and heavy grades for April, the source said.

China Feb implied oil demand rebounds to record high
BEIJING, March 10 (Reuters) - China's implied oil demand in February rebounded to a record high rate last seen in December after a dip in January, official data showed on Saturday, as refineries continued with fairly hefty runs while net imports of oil products surged from a month earlier.
Implied demand, the combination of crude oil throughput and net fuel imports, rose about 2 percent from a year earlier to 9.71 million barrels per day (bpd) last month, the same as in December, according to Reuters calculations based on preliminary government data.

Oil Trades Near Lowest in a Week on Stockpile Forecast and Price Concern (Source: Bloomberg)
Oil traded near the lowest level in almost a week in New York as investors bet fuel demand may falter amid rising U.S. crude stockpiles and producers of the commodity said prices are too high. Futures were little changed after dropping for the first time in four days. U.S. inventories probably rose 1.9 million barrels last week to the highest in six months, according to a Bloomberg News survey of analysts before an Energy Department report tomorrow. Crude prices are “high” because of international political tension and should be lower, oil ministers from Oman, the United Arab Emirates and Angola said. The Energy Department data is “certainly something to keep an eye on because changes in inventories are one of the best indicators of things going on demand-wise,” said Ric Spooner, a chief market analyst at CMC Markets in Sydney. “The geopolitical risk is certainly a major factor that is clearly preventing prices from falling too far at this stage.”
Oil for April delivery was at $106.52 a barrel, up 18 cents, in electronic trading on the New York Mercantile Exchange at 11:31 a.m. Sydney time. The contract yesterday fell $1.06, or 1 percent, to $106.34, the lowest close since March 7. Prices are 7.9 percent higher this year.

China oil demand as good as it gets
-- Clyde Russell is a Reuters market analyst. The views expressed are his own. --
SINGAPORE, March 12 (Reuters) - China's record crude imports in February are most likely as high as they will go, at least for the coming months, as rising prices, refinery maintenance and slower economic growth curb demand.
China swallowed a record 5.95 million barrels per day of crude last month from overseas, continuing a recent strong run of imports.

Ore-Shipping Cost Seen Falling to Decade Low as China Cuts Target: Freight (Source: Bloomberg)
Rates to ship iron ore, the second- biggest cargo after oil, are poised to drop to the lowest level in a decade after China cut its growth target, signaling weaker demand from the world’s biggest buyer of the commodity. Capesizes, each hauling about 170,000 metric tons of ore, will earn an average of $13,000 a day this year, the least since 2002, according to the median of 10 analyst forecasts compiled by Bloomberg. That’s 13 percent less than the median in January. Shares of New York-based Genco Shipping & Trading Ltd. (GNK), which operates nine of the vessels, will drop 19 percent in the next 12 months, the average of 11 estimates showed.
China, which buys 64 percent of all seaborne iron ore, will target growth of 7.5 percent, the lowest since 2004, Premier Wen Jiabao said March 5. Steel output will advance 4 percent this year, from 8.9 percent in 2011, the China Iron and Steel Association predicted the following day. Iron-ore imports may decline 14 percent this year, equal to about 550 Capesize cargoes, the China Mining Association estimates. “Any optimism in the market earlier on has disappeared,” said Andreas Loftesnes, a Singapore-based freight and iron-ore derivatives broker at Freight Investor Services Ltd., which claims to be the biggest broker of the swaps contracts. “We may see China clamping down and going a bit slower. We need much more cargo.”

Gold Futures Fall Below $1,700 in N.Y. on China Growth Slowdown Concern (Source: Bloomberg)
Gold dropped below $1,700 an ounce, alongside other commodities, on concern that a slowdown in China may crimp demand for raw materials. The Standard & Poor’s GSCI Index of 24 raw materials slumped as much as 1.2 percent as the world’s second-largest economy had the biggest trade deficit last month in at least 22 years, the weakest January-February factory-production gain since 2009 and retail sales in the first two months of the year below the median economist estimate, according to government data. “All commodities, including gold, have taken a hit because of China,” David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview. Gold futures for April delivery declined 0.7 percent to settle at $1,699.80 at 1:45 p.m. on the Comex in New York. Prices jumped 2.4 percent in the previous three sessions. The precious metal has climbed 8.5 percent this year.
Managed-money firms cut net-long positions in gold futures and options by 26 percent to 145,997 contracts in the week ended March 6, according to U.S. Commodity Futures Trading Commission data. That’s the biggest reduction since August 2008.

20120313 0928 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soy futures end lower, pressured by traders continuing to take profits on recent gains amid worries about export demand. Analysts are concerned that high soy prices were stall export demand, despite lower projected global supplies. The unwinding of long soybeans/short corn spreads were featured as corn remains buoyed by tight supplies and lingering talk fresh export demand, analysts say. Meanwhile, a pick up Brazil's soy harvest added pressure, as the availability to global supplies increase, analysts say. Soy products followed the lead of beans, with soyoil garnering added weakness from slumping energy futures. CBOT May soybeans ended down 3 1/4c to $13.34 1/2/ a bushel.

Soybean Meal/Oil (Source: CME)
May soyoil dropped 0.31c to 53.96 cents/lb, and May soymeal was down $0.60 to $362.10/short ton.

India crushes more than half of 2011/12 soybean crop
MUMBAI, March 9 (Reuters) - India has crushed more than half of its 2011/12 soybean crop to meet aggressive export demand for soymeal and is likely to start the new marketing year in October with meagre carry forward stocks of beans, a senior industry official said.
"Around 6.5 milion tonnes of soybean have already been crushed out of total arrivals of 7.5 million tonnes," Rajesh Agrawal, chief co-ordinater at the Soybean Processors Association of India (SOPA), told Reuters in an interview.

Palm oil slips on China data, USDA report
KUALA LUMPUR, March 12 (Reuters) - Malaysian crude palm oil futures eased, as weak Chinese exports and a slightly bearish U.S. soybean report offset the bullish sentiment that had propelled prices to 9-month highs last week. China posted its largest trade deficit in at least a decade, fanning concerns that slowing exports from the world's second largest economy will hurt global growth, as well as demand for palm oil.
"Overall, the news is slightly negative for CPO prices as it tracks soybean oil prices closely. However, the low production season in the first quarter, and improving demand from China and India, should support CPO prices in the near term," said Alan Lim, research analyst with Kenanga Investment Bank in Malaysia.

Argentina soy harvest gets started - gov't
BUENOS AIRES, March 9 (Reuters) - Farmers have begun harvesting the 2011/12 soy crop in Argentina, the world's No. 3 soybean exporter and its top soyoil and soymeal supplier, the local Agriculture Ministry said on Friday.
A drought earlier in the season cut soy output estimates by about 10 percent and slashed the outlook for corn by nearly 30 percent, although rains that began falling in mid-January later brought relief.

Drought hits S.America soy crop harder than expected
WASHINGTON, March 9 (Reuters) - South America's drought withered Brazil's big soybean crop by 9 percent in the past three months, and the crop in Argentina by 11 percent, the U.S. government said Friday, more than traders had expected.
The smaller crops in Brazil and Argentina, which combined grow nearly half of the soybeans in the world, means slightly smaller but still ample global stocks, the Agriculture Department said in its monthly assessment of crops worldwide.


Palm oil stockpiles in Malaysia gained for the first time in five months in February, staying above two million metric tons as exports declined. Inventories increased 2% to 2.06m tons from January, the Malaysian Palm Oil Board said. That was more than the 1.9m tons predicted in a Bloomberg survey last week and higher than the 1.48m tons last year. Output fell 7.9% to 1.19m tons and exports shrank 12.6% to a one-year low of 1.21m tons, it said. Higher supplies may pressure prices which rose to a nine- month high on March 9 on concerns that global soybean production will decline after crops in South America were damaged by a drought. Soybeans can be crushed to make soybean oil, a substitute of palm oil in food and fuel. (Bloomberg)

Malaysia‘s palm oil exports rose 33% in the first 10 days of March compared with the previous month, estimated Societe Generale de Surveillance, an independent cargo surveyor. A total of 448,615 metric tons of palm oil were tracked, SGS said. Malaysia exported 337,618 tons of palm oil during the same period in February, according to the surveyor. (Bloomberg)