Tuesday, March 27, 2012

20120327 1818 FCPO EOD Daily Chart Study.

FCPO closed : 3481, changed : +22 points, volume : lower.
Bollinger band reading : upside biased with possible pullback correction.
MACD Histrogram : rising higher, buyer in control.
Support : 3470, 3450, 3420, 3380 level.
Resistance : 3500, 3550, 3620, 3650 level.
Comment :
FCPO closed recorded gain with shrinking volume transacted. Soy oil price currently trading little higher after overnight closed firmer while crude oil price currently trading little higher hovering near 108 level.
FCPO price still traded higher on higher demand prospect, lower production cycle and tight soy oil price supply while industry expert Dorad Mistry speech expecting crude palm oil price to reach RM4,000 by June 2012.
Technical reading still suggesting an upside biased market development with possible pullback correction.
When to buy : buy at support or weakness with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20120327 1738 FKLI EOD Daily Chart Study.

FKLI closed : 1592 changed : +8 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : turned upward again, buyer seller battling.
Support : 1590, 1580, 1570, 1565 level.
Resistance : 1600, 1610, 1620, 1630, 1640 level.
Comment :
FKLI closed recorded gain with increasing volume exchanged with huge rollover activities doing 4 points premium compare to cash market that closed higher. Overnight U.S. markets closed recorded gains and today Asia markets ended mostly higher while European markets currently trading in positive zone.
Improved German business confident and U.S. Federal Reserve statement of accommodative monetary policy is still needed to spur jobs sent global markets to trade higher.
Daily chart study revised to suggesting a upside biased market development testing previous high resistance near 1596.
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.

20120326 1737 Regional Markets EOD Daily Chart Study.

 DJIA chart reading : upside biased rebound from middle Bollinger band.
  Hang Seng chart reading : correction range bound little downside biased.
KLCI chart reading :  upside biased.

20120327 1608 Global Market & Commodities Related News.

Asian stocks rebound as Bernanke soothes investors
SINGAPORE, March 27 (Reuters) - Asian stocks rebounded and the dollar struggled after Federal Reserve Chairman Ben Bernanke said ultra-loose monetary policy was still needed to reduce unemployment even though the U.S. economy has shown signs of improvement.
"We are clearly addicted to this highly liquid market, and Bernanke has reassured that it (will) stay up this way," said Kent Engelke, chief economic strategist at Capitol Securities Management.

FOREX-Dollar hit by dovish Fed, stuck near one-month low
SINGAPORE/SYDNEY, March 27 (Reuters) - The dollar held near a one-month low against a basket of currencies on Tuesday after Federal Reserve Chairman Ben Bernanke signalled that a supportive monetary policy would remain and kept alive hopes of more monetary stimulus for the U.S. economy.
"It suggests QE3 is on its way or at least a very dovish stance until such a point as unemployment falls enough," he said, referring to another round of bond buying or quantitative easing.

Food security focus fuels new worries over crop chemicals
March 26 (Reuters) - Scientists, environmentalists and farm advocates are pressing the question about whether rewards of the trend toward using more and more crop chemicals are worth the risks, as the agricultural industry strives to ramp up production to feed the world's growing pupulation.
The debate has heated up in the last several weeks, with a series of warnings and calls for government action including a lawsuit against the U.S. Environmental Protection Agency.

World grain prices to stay strong-UN's FAO
BUENOS AIRES, March 26 (Reuters) - World grain prices should remain "very firm" over the near term as demand from Asia exceeds forecasts and dry weather cuts into supply, the senior economist of the U.N.'s Food and Agriculture Organization (FAO) said on Monday.
South American corn and soy yields took a beating from drought this season, while China's rapidly growing middle class continues its love affair with beef steaks.

Soy up 3rd session on S America outlook; wheat, corn up
NEW DELHI, March 27 (Reuters) - Chicago soybeans rose for a third straight session after hitting a six-month high a day earlier on worries over supply from drought-hit South America amid higher Chinese demand for U.S. beans.
"There is a strong case for soy to rise, as you can see a constant deterioration in the crop outlook of Brazil and Argentina while Chinese demand for U.S. beans is very strong," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne.

Rains to help Brazil's dry sugar cane fields
BRASILIA, March 26 (Reuters) - Rains over Brazil's main sugarcane state, Sao Paulo, should turn more frequent through mid-April bringing relief to fields that have been drying out for near two months after unusually few showers, forecaster Somar said on Monday.
The world's top sugar producer is now just weeks from the start of the harvest in its center-south cane belt, one eagerly awaited after last year's disappointing crop.

EU sees rise in 2012 soft wheat, barley crop yields
PARIS, March 26 (Reuters) - Average yields of the European Union's soft wheat and barley crops should rise this year despite frost damage, the European Commission's crop-monitoring unit said in a report on Monday.
In its first estimates for the forthcoming harvest in the 27-member bloc, the Monitoring Agricultural ResourceS (MARS), a research unit of the European executive, put the EU's average yield for the bloc's soft wheat crop at 5.67 tonnes per hectare in 2012, up 1.7 percent on last year and 1.8 percent above the 2007-2011 average.
 
India allows 1 mln T of extra sugar exports
NEW DELHI, March 26 (Reuters) - India has allowed another 1 million tonnes of unrestricted white sugar exports, a government source said on Monday, bringing the total approved so far to 3 million tonnes, in line with what the industry and markets expected.
The world's second-biggest producer of sugar had already allowed mills to export 2 million tonnes of sugar without restrictions under its Open General Licence (OGL) scheme in the current year that started in October 2011.
 
Dry weather worries Ivorian cocoa farmers
ABIDJAN, March 26 (Reuters) - Flowers and pods on cocoa trees in some of Ivory Coast's main growing areas are drying up and dying after two weeks without rain, farmers said on Monday, signalling bad news for the coming mid-crop season.
A weak April-to-September mid-crop would exacerbate poor supplies from the world's top grower nation after a drought cut the October-to-March main harvest short and undermined the quality of the last trickle of beans.

Brent crude stays above $125 on Fed comments, Iran
SINGAPORE, March 27 (Reuters) - Brent held steady above $125 as comments from the U.S. Federal Reserve indicating easy monetary policy would remain in place for some time raised investors' appetite for riskier assets.
"It was more a reminder that the Fed stands ready to turn on the printing presses again should conditions warrant it," said Ben Le Brun, market analyst with OptionsXpress in Sydney.

U.S. bill ending oil company tax cuts clears Senate hurdle
WASHINGTON, March 26 (Reuters) - Legislation repealing tax breaks for major oil companies passed its first hurdle i n the Senate on Mo nday, but is unlikely to become law, as Republicans and Democrats seek to score political points over rising gasoline prices.
The Senate voted 92 to 4 to proceed with consideration on the bill that would eliminate billions of dollars in tax breaks for the "big five" oil companies: Exxon Mobil Corp , BP Plc , ConocoPhillips , Chevron Corp  and Royal Dutch Shell Plc.

Copper steady after rally on U.S. easing hopes
SINGAPORE, March 27 (Reuters) - Copper was largely steady after rallying more than 2 percent in the previous session, as worries about slowing demand growth from China tempered hopes of further monetary easing in the United States.
"Bernanke's comments were supportive for a lot of the commodities. Copper has stayed in a very tight range," said Jonathan Barratt, chief executive of BarrattBulletin, a Sydney-based commodity research firm.

Brazil's Vale moderately optimistic about iron ore outlook
SINGAPORE, March 27 (Reuters) - World no.2 miner Vale  is moderately optimistic about the outlook for iron ore and expects significant demand from China despite moderate growth in steel production there, Claudio Alves, global marketing director, said on Tuesday.
"Regarding the future, we at Vale are moderately optimistic for the next few years. We believe China will continue to grow," Alves said.

Gold eases after rally; Bernanke boosts sentiment
SINGAPORE, March 27 (Reuters) - Gold edged down as it consolidated after its biggest daily gain since late January in the previous session when the   U.S. Federal Reserve signalled it would keep interest rates low.
"For the next few days, we could see the market challenge the upside, although I am not sure it will manage to significantly break above $1,700. It may be capped at around $1,720 level," said Nick Trevethan, a senior commodity strategist at ANZ in Singapore.

Sumitomo Mining confirms new gold deposit of 40 T
TOKYO, March 27 (Reuters) - Sumitomo Metal Mining Co , a major Japanese non-ferrous metal miner, said it had confirmed a new gold deposit containing 40 tonnes at its Pogo mine in Alaska, raising the total resources and reserves at the U.S. mine to 12.33 million tonnes.
The mine is owned 85 percent by Sumitomo Metal Mining and 15 percent by trading house Sumitomo Corp.

China to keep rebates on aluminium product exports -industry
HONG KONG, March 26 (Reuters) - China is likely to keep giving tax rebates to exporters of semi-finished aluminium products this year to encourage the exports, removing an obstacle that slowed them last year, sources at producers said on Monday.
Last year, Beijing was set to cut tax rebates on some products to 9 percent from 13-15 percent but put the plan on hold after growth in the exports sank in the second half due to expectations of the cuts and lower demand from the United States and Europe.

Romania sells copper mine to Canadian group
BUCHAREST, March 26 (Reuters) - Romania sold its biggest copper mine, Cupru Min Abrud, to Canada's Roman Copper Corp. for 200.8 million euros ($266 million) in a step forward for a long-delayed privatisation programme, the economy ministry said on Friday.  
The state-owned company has estimated reserves of 900,000 tonnes of copper, or about 60 percent of the European Union state's estimated copper reserves. The minimum price was set at 263.3 million lei ($80 million).

Xstrata Copper CEO sees strong demand, tight market-report
SANTIAGO, March 26 (Reuters) - Strong global copper demand and difficulties in bringing new mines on line will keep the red metal market tight, the head of Xstrata Copper, the world's fourth-largest copper miner, told a Chilean paper's Monday edition.
A stabilized situation in Europe, recovery in the United States and very robust demand perspectives in key emerging countries will bolster copper consumption, CEO Charlie Sartain said. Lack of new deposits and high rates of interruptions in existing ones will ensure a tight global supply of copper, said the Xstrata executive.
 
Russia gold output growth to slow in '12-union
MOSCOW, March 26 (Reuters) - Russian gold production growth could slow to 3 percent in 2012, comparing with last year's 3.6 percent increase, due to declining output from several mines, the Gold Industrialists' Union said in a statement on Monday.
Output is expected to fall at the major Kupol mine in the Arctic, owned by Canadian gold producer Kinross Gold Corp , and on some alluvial mines, the producers' union added.

Brazil CSN Q4 profit jumps 81 pct on ore, steel sales
SAO PAULO, March 26 (Reuters) - Brazilian steelmaker CSN  reported an 81 percent annual jump in net profit for the fourth quarter, as stronger-than-expected sales of iron ore and flat steel products offset a surge in expenses.
The Sao Paulo-based company posted a net profit of 817 million reais ($450 million) for the fourth quarter compared with 450 million reais in the same period of 2010. But that was a 26 percent drop from 1.097 billion reais in the third quarter.

METALS-Copper flat after rally on U.S. easing hopes
SINGAPORE, March 27 (Reuters) - Copper was largely steady after rallying more than 2 percent in the previous session, as worries about slowing demand growth from China tempered hopes for further monetary easing in the United States.
"Bernanke's comments were supportive for a lot of commodities. Copper has stayed in a very tight range," said Jonathan Barratt, chief executive of BarrattBulletin, a Sydney-based commodity research firm.    

PRECIOUS-Gold eases after rally; Bernanke boosts sentiment
SINGAPORE, March 27 (Reuters) - Gold edged down as it consolidated after its biggest daily gain since late January in the previous session when the   U.S. Federal Reserve signalled it would keep interest rates low - a move which burnishes the metal's safe-haven appeal.  
"For the next few days, we could see the market challenge the upside, although I am not sure it will manage to significantly break above $1,700. It may be capped at around the $1,720 level," said Nick Trevethan, a senior commodity strategist at ANZ in Singapore.  

20120327 1120 Global Market & Commodities Related News.

GLOBAL MARKETS-Asian stocks rebound as Bernanke soothes investors
SINGAPORE, March 27 (Reuters) - Asian stocks rebounded on Tuesday and the dollar eased after Federal Reserve Chairman Ben Bernanke said ultra-loose monetary policy was still needed to reduce unemployment even though the U.S. economy has shown signs of improvement.
"We are clearly addicted to this highly liquid market, and Bernanke has reassured that it (will) stay up this way," said Kent Engelke, chief economic strategist at Capitol Securities Management.

COMMODITIES-Gold surges on dollar weakness; soy at 6-month tops
NEW YORK, March 26 (Reuters) - Gold prices rose their most in two months on Monday, adjusting to a dollar weakened by
comments from the U.S. Federal Reserve chief, while soybeans hit six-month highs on diminishing crop prospects from top exporter Brazil.
"The Bernanke comments and the overnight German confidence reading were on the plus side" for gold, said John Kilduff, partner at Again Capital, a commodities fund in New York.

OIL-Oil rises, Bernanke comments lift markets
NEW YORK, March 26 (Reuters) - Oil rose on Monday as comments from U.S. Federal Reserve Chairman Ben Bernanke reinforced expectations that interest rates will be kept low.
"The Bernanke comments and the overnight German confidence reading were on the plus side, but without further Iran and North Korea jitters, the positive economic news is more than priced in," said John Kilduff, partner at Again Capital LLC.

NATURAL GAS-US natgas futures end down, spreads to winter widen
NEW YORK, March 26 (Reuters) - U.S. natural gas futures ended lower on Monday after an early move upward, with front months losing the most amid record-high supplies and milder late-week forecasts despite recent declines in drilling and cool temperatures to start the week.
"It is worth noting that the current 11-15 day forecast is more neutral, with some shift in the overall pattern that points to less bearish storage figures n the offing, provided that forecast holds up," said Tim Evans at Citi Futures Perspective.

EURO COAL-Prices move sideways, under downward pressure
LONDON, March 26 (Reuters) - Prices for prompt physical coal deliveries remained little changed on Monday, but were expected
to come under downward pressure from ample supply and reduced European demand at the end of the winter heating season.
"The increasing pressure from growing inventory levels suggests that at some point, (South African) Richards Bay benchmarks will have to start shedding some value ... (and) with the effects from the (Australian) flood easing now, Newcastle FOB is likely to price itself lower and this could further put pressure on those Richards Bay prices," Barclays Capital said in a research note.

UK energy price hikes could have been worse
LONDON, March 26 (Reuters) - British wholesale energy prices have risen much faster than retail prices in the past decade, debunking criticism that utilities are using wholesale rises to overcharge customers for their bills.
Record profits at some utilities in recent years have helped spur outrage by consumer groups, which have accused power and gas suppliers of overcharging customers by passing on wholesale price rises while failing to lower them when wholesale rates ease.
 
US gas price spike revives fight over energy taxes
WASHINGTON, March 26 (Reuters) - Exxon Mobil, the world's most profitable corporation, says it paid more than 45 percent of its 2011 income in taxes, while critics say it paid much less. So which is it?
The answer is that it depends on how the calculation is made and who is making it - a point that is becoming more important as gasoline prices and oil company profits soar.
 
RBS halts India tanker payment due to Iran sanctions
NEW DELHI/SINGAPORE, March 26 (Reuters)- The Royal Bank of Scotland  has halted payments to a Greek ship owner which transported Iranian oil for an Indian shipping company, in line with Western sanctions aimed at hindering Iranian crude exports, shipping sources told Reuters.
The European Union in January placed an immediate ban on new contracts to import, purchase or transport Iranian crude and petroleum products. EU members with existing contracts, however, can honor them until July 1.

20120327 1019 Malaysia Corporate Related News.

MAHB shortlisted for Qatar airport job
Malaysia Airports Holdings (MAHB) has been shortlisted for the airport operation and maintenance of facilities contract for Qatar's new airport, currently called New Doha International Airport. Chief operating officer Datuk Abdul Hamid Mohd Ali said the company has been shortlisted out of 16 candidates for the project and that MAHB had come out as the second choice due to its strength in technical knowledge. MAHB expects to know the outcome of its tender in the third quarter this year. (StarBiz)

Elevator maker EITA to lift profile with listing
Elevator manufacturer and electrical and electronics components distributor EITA Resources has received the nod from the Securities Commission to list its shares on the Main Market of Bursa Malaysia within the first half of this year. "We have installed our in-house brand elevators, including escalator and traveller systems, in numerous commercial and residential properties in the region," said group managing director Fu Wing Hoong in the statement. (BT)

TM aims to hit 400,000 mark for UniFi by year-end
Telekom Malaysia (TM) aims to hit the 400,000th customer mark for its high-speed broadband service, UniFi, by year-end. In a statement, TM executive VP Imri Mokhtar said UniFi's customer base has been growing rapidly, surpassing the 300,000 mark yesterday. Imri said TM expects the UniFi's take-up to continue to increase to 50% of premises passed in the next three to five years. (BT)

Mah Sing in deal for RM830m project
Mah Sing Group will be jointly undertaking the development of a 1.72ha parcel of prime leasehold commercial land in Harbour City, Kota Kinabalu. According to its announcement on Bursa Malaysia, the development, tentatively named Sutera Avenue, will be a niche project with a proposed gross development value of about RM830m. Comprising multi-storey shop offices fronting the Coastal Highway, Sutera Avenue will be complemented by street mall retail lots and serviced apartments. (Financial Daily)

IOI's Bumitama to list on SGX
IOI Corp is set to register at least USD226m (RM696m) or a 360% gain - on paper - from its investment in Indonesia-based Bumitama Agri Ltd. The latter has just filed for an IPO on the Singapore Exchange (SGX), which is said to fetch a market capitalisation of between SGD1.2bn and SGD1.3bn (RM2.9bn and RM3.2bn). Bumitama, which shelved its IPO proposal last June, now plans to raise as much as SGD222m due to improved company valuations and strong demand for its shares. (Financial Daily)

Gas Malaysia listing in 2Q
MMC Corp said the listing of its associate Gas Malaysia on the Bursa Main Market will likely take place in the second-quarter (2Q), according to a filing with the exchange, by the engineering, logistics and construction company yesterday. The Securities Commission has given an extension till 6 Oct 2012, for the Gas Malaysia to complete the listing. (Malaysian Reserve)

Amanah Raya opts to exit Johor resort project
Malaysia Pacific Corp (MPCorp) announced that Amanah Raya Development SB has given notice it is exercising its put option granted by Oriental Pearl City Properties SB to divest Amanah Raya's stake in joint venture Lakehill Resort Development SB. Oriental will have to purchase Amanah Raya's 22% stake for RM110.8m, according to a filing with Bursa Malaysia by MPCorp yesterday. Lakehill is an integrated resort development located in Johor. The put option shall be paid within a period of 60 days from the notice. (Malaysian Reserve)

UEM Land: Still in negotiations with regional developers
UEM Land Holdings said it is still negotiating with certain parties regarding its plans to enter India, Myanmar and Vietnam.  MD and  CEO, Datuk Wan Abdullah Wan Ibrahim however declined to divulge details on the negotiations, saying that one of the agreements was expected to be signed this year. The company currently has a presence in Canada through its subsidiary, Sunrise Bhd. Wan Abdullah also said the company would also be looking at other countries, wherever the opportunity arises. Going forward, UEM Land aimed to have a big jump in revenue and profit after tax and minority interest (PATAMI) by 2015. He added that currently, their focus is to make sure the projects in Nusajaya, Johor, kick off and be catalysts for the development's tipping point. The company has set a PATAMI growth target of 40.0% for this year on the back of a 50.0% rise in revenue. UEM Land has unbilled sales totalling RM1.9bn as at Dec 31, 2011, and aimed to achieve RM3bn in sales this year.
The company aimed to launch projects with GDV of RM4.5bn, of which less than 10% has been launched as of 1Q CY2012. (Bernama)

YTL Corp: To buy SG REIT’s convertible preference unit for RM42.8m
YTL Corp is acquiring 17.5m convertible preferred units (CPU) in Starhill Global Real Estate Investment Trust (SG REIT) for S$1 each which amounted S$17.5m  (RM42.8m) in cash. YTL Corp said the acquisition provides an opportunity for the company to further increase its stake in SG REIT upon the conversion of the CPUs. The CPUs also carry a net annual yield of 5.1% (net of withholding tax) which is generally higher than the fixed deposit rates in Malaysia. It added that the CPU acquisition was undertaken to facilitate Starhill’s compliance with the relevant provisions of the Securities Commission of Malaysia’s Guideliens on Real Estate Investment Trusts, and that it also allowed Starhill REIT to focus on its core activity of property investment. (Financial Daily)

Malaysia Smelting Corporation: To double royalty payment to Perak government
Malaysia Smelting Corporation (MSC) has agreed to pay 100.0% more in royalties to Perak government. In return, it has secured the renewal of tin mining leases in the state for a longer period. MSC said its wholly-owned subsidiary, Rahman Hydraulic Tin Sdn bhd (RHT) had agreed to pay the state government a higher rate of 5.0% on sales of tin-in-concentrates. This doubles the current rate of 2.5% payable under the existing terms of the current mining leases, originally issued under the old enactment that was subsequently replaced by the 2003 enactment. The group said the extension of the current mining leases to 2030 will enable RHT to undertake the necessary additional investments to optimize its long-term production level at the mine. (Financial Daily)

Poh Kong: Cancels RM200m bond
Malaysia’s RAM Ratings has received confirmation that Poh Kong Holdings (Poh Kong) has cancelled its RM200.0m Murabahah Commercial Papers/Medium-Term Notes Programme(2006/2013) (CP/MTN) ahead of the maturity date of Aug 23, 2013. There had been no outstanding CP/MTN under the debt facility prior to its cancellation. (Business Times)

Adventa: 1Q FY2012 earnings fall on margin squeeze, forex loss
Adventa posted a weaker set of financial results for 1Q FY2012 with net profit falling 33.0% to RM2.7m from RM4.1m as it was impacted by margin squeeze, foreign exchange loss and higher finance cost. Its revenue slipped 2.2% to RM103.8m from RM106.2m while earnings per share were 1.77 sen compared with 2.65 sen. The group’s revenue dropped 2.0% over corresponding quarter due to a reduction in orders for latex examination gloves as many markets are switching to synthetic nitrile material. Although the group has new nitrile exam gloves manufacturing capacity, it is insufficient to meet the change in demand, it explained in the notes to the accounts. Adventa was more upbeat about the next three quarters as it expected an improvement in sales compared to the first quarter, with more nitrile glove capacity coming on stream. While it said latex gloves remain weak, it expected the dental gloves segment to maintain its contribution. (Financial Daily)

CB Industrial Products: Secures RM44.66m palm oil refinery project
CB Industrial Product Holding  (CBIP) has secured a RM44.7m contract from Kumpulan Perladangan PKINK Bhd to build a palm oil mill. CBIP said on Monday its unit Modipalm Engineering Sdn Bhd was awarded a contract by PKINK’s unit Syarikat Ladang Sungai Terah Sdn Bhd to design and build a mill with a capacity of 30 tonnes per hour at a cost of RM42.6m. It said the contact included the extension of another 15 tonnes per hour capacity valued at RM2.1m. It added the extension had to be undertaken within two years after the 30 tonnes per mill had been handed over. (Financial Daily)

AIC Corporation: TC Goh denies selling shares to LTAT
Datuk Goh Tian Chuan said he is not disposing of his shares in AIC Corporation. The Edge Financial Daily had reported Monday that Lembaga Tabung Angkatan Tentera (LTAT) had acquired some 20m shares in AIC Corporation from several substantial shareholders including Goh. (Financial Daily)

mTouche Technology: Sees 16% of shares traded offmarket
Approximately 16% equity interest in mTouche Technology changed hands in off-market trades Monday. The company had been attracting attention as AirAsia’s co-founder Datuk Kamarudin Meranun has recently become a substantial shareholder. The off-market trade which occurred just after 3pm Monday took place at 31.5 sen a share and involved 27.2m shares in mTouche Technology. An additional block of 9.3m shares was moved off-market at the same price shortly after. (Financial Daily)

Pelangi Publishing Group: Positive on Thailand, Indonesia
Pelangi Publishing Group sees good growth prospects in Indonesia and Thailand as people in the two countries are avid book readers. Executive chairman and group MD Samuel Sum Kown Cheek said another major factor that would contribute to growth were the large domestic markets there. He said Indonesia, with a population of 240m and Thailand with 70m people offered ready markets for many publication companies. Sum added that Indonesians and Thais read books of a wider range of subjects unlike Malaysians who only go for examination and revision books. Sum said another advantage having operations in the two countries was that a majority books for the Indonesian and  Thailand markets were published in Bahasa Indonesia and Thai. On related matter, he said the company wanted to further strengthen its position in the region with the setting up of a publishing house in Singapore. Sum said Pelangi Publishing Singapore Pte Ltd would produce English language books for regional markets such as Cambodia, China, India and Myanmar. (StarBiz)

Construction: Government to invest over RM800.0m in flood mitigation projects
The Malaysian Government, via the Department of Irrigation and Drainage, will be spending RM880.0m in flood mitigation projects throughout the country. Natural Resources and Environment deputy minister Tan Sri Joseph Kurup said a total of 32 projects are currently under construction, which are expected to be completed by the end of the year. He said flood hazard maps for six major river basins had been completed, which include the rivers Muar, Kulai, Kinta, Selangor, Muda and Kedah. (StarBiz)

Property: The Arabs are out, other foreign investors buy 80% of Medini land in Iskandar
Arab investors who were originally the master developers of 2,230 acres at Iskandar Malaysia known as Medini development will no longer be involved and about 80.0% of that land has since been sold to other foreign investors, including those from East Asia. Iskandar Investment Bhd president/CEO Datuk Syed Mohammad Ibrahim said that they have get investors from China, South Korea and Japan to invest in the land. Syed Mohamed said parties from China wanted to buy the entire Medini area, but because it would be developed into a cosmopolitan area, they had to ensure there was a mix of investors from different part of the world. (StarBiz)


Supercomnet Technologies has struck a deal with Mohd Nazifuddin Mohd Najib, where he has the option to buy an 18.66% stake in the ACE Market-listed company for about RM10.2m. Its non-independent non-executive director Wu Chung-Jung entered into an agreement, on behalf of the company's major shareholders, for Mohd Nazifuddin to have a 30-day option to buy 45.3m Supercomnet shares at RM0.225/share. Mohd Nazifuddin is the son of PM Datuk Seri Najib Tun Razak. Yesterday, Supercomnet's stock soared to close 19.5 sen higher at RM0.495. The share price has gained more than 250% since closing at RM0.14 on Mar 21. (Starbiz)

20120327 1018 Global Economy Related News.

Singapore: Output misses estimates on electronics slump
Singapore’s industrial production grew less than economists estimated in February as a slump in electronics output persisted. Manufacturing rose 12.1% from a year earlier after a revised 9.6% decline in January, the Economic Development Board said. The median of 13 economists surveyed by Bloomberg News was for a 16.2% gain. (Bloomberg)

Thailand: Finance Ministry raises growth forecast, sees rate rise
Thailand’s Finance Ministry raised its 2012 growth forecast and predicted interest rates will rise, less than a week after Deputy Prime Minister Kittiratt Na-Ranong urged the central bank to ease monetary policy. GDP is estimated to grow between 5% and 6%, with a midpoint forecast of 5.5%, Somchai Sujjapongse, head of the fiscal policy office, told a news conference in Bangkok. The ministry predicted earlier the economy would grow about 5% this year. (Bloomberg)

India: Mukherjee cash boost sends SBI yield to August low
Borrowing costs for India’s biggest banks have dropped to a seven-month low after the government proposed to invest USD3.2bn in state-owned lenders. Yields on State Bank of India’s dollar-denominated notes due 2014 declined 14 basis points this month to 3.33% as Finance Minister Pranab Mukherjee unveiled plans for a holding company to inject the capital. (Bloomberg)

Germany: Business confidence unexpectedly gained in March
German business confidence unexpectedly rose to an eight-month high in March, suggesting Europe’s largest economy will return to growth even as the sovereign debt crisis curbs euro-area demand for its exports. The Munich-based IFO institute said its business climate index, based on a survey of 7,000 executives, increased to 109.8 from a revised 109.7 in February. Economists forecast it would remain unchanged at the initial February reading of 109.6, according to the median of 44 estimates in a Bloomberg News survey. (Bloomberg)

EU: Draghi says governments must continue to take decisive measures
ECB President Mario Draghi said euro-region governments should continue to take decisive measures after the central bank’s liquidity provisions helped restore investor confidence. Draghi said that while the ECB’s injection of more than 1.0trn euros ($1.3trn) into the banking system has calmed markets, no single institution can carry the burden of addressing a set of challenges that are simultaneously economic, financial and fiscal. Finance ministers from the 17 nations will meet in Copenhagen on Mar 30 and Chancellor Angela Merkel gave her first indication Monday that she is prepared to allow an increase in the debt-crisis firewall, saying that Germany could let the temporary and permanent rescue funds run in parallel. Merkel cited fragility in Spain and Portugal as she revealed Germany’s position on addressing the future backstop. (Bloomberg)

US: Pending sales of US existing homes hold near two-year high
The number of Americans signing contracts to buy previously owned homes held in February near an almost two-year high, a sign that the real estate market may be stabilizing. The index of pending home purchases fell 0.5% to 96.5 after a 2% increase the prior month, the National Association of Realtors said. January’s reading of 97 was the highest since April 2010. The median forecast of 41 economists surveyed by Bloomberg News called for a 1% rise. (Bloomberg)

US: Bernanke says accommodative policy needed to cut joblessness
Federal Reserve Chairman Ben S. Bernanke said while he’s encouraged by the unemployment rate’s decline to 8.3%, continued accommodative monetary policy will be needed to make further progress. Stocks rallied as some investors bet Bernanke’s comments indicate further policy easing is still under consideration. The Federal Open Market Committee on 13 March raised its assessment of the economy while repeating that interest rates are likely to stay low at least through late 2014. (Bloomberg)

US: Services displace factories in driving expansion
Service producers are taking over from manufacturing as the driver of the almost 3-year-old US expansion. The end of the recession in Jun 2009 triggered the biggest surge in production in a decade, propelled by rising demand from overseas and the need to replenish inventories and upgrade equipment. That is now giving way to increasing sales at places like restaurants, transportation companies and temporary-help agencies, leading to gains in employment that have bolstered the world’s largest economy. (Bloomberg)

US: Survey shows Fed more effective with inflation, funds rate goals
The Federal Reserve’s decision to spell out the optimal rate at which prices should increase in the US and the possible trajectory of its benchmark interest rate will make policy more effective, a survey showed. Almost 7 of every 10 members polled by the National Association for Business Economics said the central bank’s plan to keep inflation rising at around 2.0% over the long term will improve the effectiveness of monetary policy. Six of ten said releasing projections for changes in the so-called federal funds rate will also help. Conversely, respondents were almost evenly split on whether the federal government was doing too much, too little or just enough to boost the economy, reflecting the lack of consensus among voters heading into a presidential election. When asked about specific policies, like extending the payroll tax cut or the credit on business investment, a majority supported the measures. (Bloomberg)

US stocks advance following Bernanke’s comments
US stocks advanced, sending the Standard & Poor’s 500 Index to the highest level since May 2008, after Federal Reserve Chairman Ben S. Bernanke said that accommodative monetary policy is still needed to spur jobs. The S&P 500 advanced 1.4% to 1,416.51, erasing last week’s loss and posting the fourth-biggest gain of 2012. The Dow Jones Industrial Average added 160.90 pts, or 1.2%, to 13,241.63 yesterday. Equities rose as Bernanke said in a speech that while he’s encouraged by the unemployment rate’s decline, the economy still needs help. The number of Americans signing contracts to buy previously owned homes held in February near an almost two-year high, a sign that the real estate market may be stabilizing. (Bloomberg)

20120327 1008 Global Market Related News.

Asia Stock Snap 2-Day Loss on Bernanke, German Confidence (Source: Bloomberg)
Asian stocks rose, snapping a two- day loss, after Federal Reserve Chairman Ben S. Bernanke said accommodative monetary policy is still needed and a report showed German business confidence unexpectedly gained, improving the earnings outlook for Asian exporters. Honda Motor Co. (7267), Japan’s second-largest carmaker by market value that gets 83 percent of its sales abroad, added 2.4 percent. Sumitomo Mitsui Financial Group Inc. (8316), Japan’s second- biggest lender by market value, added 1.7 percent after German Chancellor Angela Merkel signaled she stands ready to do more to tame Europe’s debt crisis. Korea Gas Corp. (036460) advanced 6 percent after a group including the company made a new gas discovery in Mozambique. The MSCI Asia Pacific Index gained 0.9 percent to 126.84 as of 9:47 a.m. in Tokyo, paring its monthly loss to 1.7 percent. The measure has added 11 percent in the three months ending this week, headed for the biggest rally since the third quarter in 2010.
Fed policy makers “still have an option of doing more, but I think it was just reinforcing the view that they are not going to reverse policy quickly,” said Stephen Halmarick, Sydney- based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion. “There’s going to be a lot of liquidity provided for the market and economy. Obviously equity investors are taking it in a positive way.”

Japan Stocks Rise on Bernanke Comments, German Confidence (Source: Bloomberg)
Japanese shares rose after Federal Reserve Chairman Ben S. Bernanke said accommodative monetary policy is still needed and a report showed German business confidence unexpectedly gained, improving the earnings outlook for exporters. Honda Motor Co. (7267), a carmaker that gets more than 80 percent of its sales abroad, rose 2.5 percent. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s top bank by market value, gained 1.9 percent after German Chancellor Angela Merkel signaled she stands ready to do more to tame Europe’s debt crisis. Kawasaki Heavy Industries Ltd. (7012), a transport equipment maker, gained 4.4 percent after Nomura Holdings Inc. recommended its shares on a weaker yen and recovery in U.S. motorcycle demand. The Nikkei 225 Stock Average (NKY) rose 1.6 percent to 10,182.67 as of 9:25 a.m. in Tokyo, headed for its highest close since March 11. The broader Topix Index increased 1.6 percent to 865.24, with more than 14 shares gaining for each that declined.
Trading volume on the gauge was 4.4 percent above the 30-day average. Fed policy makers “still have an option of doing more, but I think it was just reinforcing the view that they are not going to reverse policy quickly,” said Stephen Halmarick, Sydney- based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion. “There’s going to be a lot of liquidity provided for the market and economy. Obviously, equity investors are taking it in a positive way.”

U.S. Stocks Advance Following Bernanke’s Comments (Source: Bloomberg)
U.S. stocks advanced, sending the Standard & Poor’s 500 Index to the highest level since May 2008, after Federal Reserve Chairman Ben S. Bernanke said that accommodative monetary policy is still needed to spur jobs. The Morgan Stanley Cyclical Index of companies most-tied to the economy rose 1.3 percent. Apple Inc. (AAPL) jumped 1.8 percent to a record as the world’s most-valuable technology company said it plans to increase investment in China. Amazon.com Inc. (AMZN) and JPMorgan Chase & Co. (JPM) climbed at least 2.2 percent to pace gains among the largest companies. Pfizer Inc. (PFE) added 1.6 percent as health-care shares rose the most among 10 S&P 500 groups. The S&P 500 advanced 1.4 percent to 1,416.51 at 4 p.m. New York time, erasing last week’s loss and posting the fourth- biggest gain of 2012. The Dow Jones Industrial Average added 160.90 points, or 1.2 percent, to 13,241.63 today. The Russell 2000 Index (RTY) of small companies rallied 1.9 percent to 846.13, the highest level since July.
About 6.2 billion shares changed hands on U.S. exchanges, or 6 percent below the three-month average. “Bernanke is in a difficult situation because the Federal Reserve is mostly relying on the Fed’s speech as opposed to money to move markets,” said David Kelly, who helps oversee about $394 billion as chief market strategist at JPMorgan Funds in New York. “What he’s trying to say is that they’re going to be pretty slow to remove stimulus.”

Stocks Rise on Euro Optimism, Fed; Treasuries Pare Loss (Source: Bloomberg)
Stocks rose, rebounding from last week’s losses, as Federal Reserve Chairman Ben S. Bernanke said accommodative policy is still needed and investors speculated the European Union will increase the size of its bailout fund. Treasuries pared losses, while commodities climbed. The Standard & Poor’s 500 Index rallied 1.4 percent to close at 1,416.51 at 4 p.m. New York time, returning to its highest level in almost four years. The Stoxx Europe 600 Index (SXXP) added 0.9 percent. Treasury 10-year yields climbed two basis point to 2.25 percent after increasing as much as six points earlier. Oil increased 16 cents to $107.03 a barrel. The Dollar Index, a gauge of the U.S. currency against six major peers, fell for a second day while gold and silver rallied.
Bernanke said that while he’s encouraged by the unemployment rate’s drop to 8.3 percent, further improvement in the job market will require continuing the central bank’s stimulative monetary policies. Chancellor Angela Merkel said Germany may back plans for the temporary and permanent euro-area rescue funds to run in parallel. European finance ministers will meet on March 30 to discuss raising a 500 billion-euro ($664 billion) ceiling on the region’s financial firewall. “Bernanke made it clear that while the Fed is not going to be revving the engine anytime soon, they are going to keep their foot on the gas,” Stephen Wood, the New York-based chief market strategist for Russell Investments, said in a telephone interview. His firm oversees $140.8 billion. “At the same time, the Europeans appear to be more serious about addressing risks. They’ve addressed shorter-term liquidity, but solvency remains an issue.”

India Stock Futures Drop as Monti Revives Europe Concerns (Source: Bloomberg)
Indian stocks dropped the most in Asia, extending the longest weekly losing stretch since August, amid concern the government will find it difficult to rein in the fiscal deficit, and as the rupee weakened to a 10-week low. Tata Consultancy Services Ltd. (TCS), the country’s biggest software exporter, which gets more than 90 percent of its sales from abroad, fell 2 percent. Reliance Industries Ltd. (RIL), owner of the world’s largest refining complex, lost 1.9 percent. ICICI Bank Ltd. (ICICIBC), the second-biggest lender, tumbled 4.2 percent.
The BSE India Sensitive Index (SENSEX), or Sensex, sank 1.8 percent to 17,052.78 at the close, the lowest level in two months. The government needs to take tough decisions in coming months and raise additional funds to fill a budget gap, Finance Minister Pranab Mukherjee said over the weekend. The monetary authority on March 15 indicated that measures to pare the deficit would boost its scope to cut interest rates, while flagging inflation risks from oil prices and a weaker rupee. “A depreciating rupee will lead to higher inflation as we are a net importer, and higher inflation leads to a slowdown in the economy that makes managing the deficit very challenging,” Arun Khurana, a fund manager at UTI Asset Management Co., which has $11.3 billion in assets, said by phone from Mumbai. “These imbalances would keep interest rates in a higher trajectory. The likelihood of a rate cut looks remote, or it may be academic in nature, or 50 basis points for the whole year.”

GLOBAL MARKETS-Stocks, euro rise on robust German morale
LONDON, March 26 (Reuters) - European shares were higher and safe-haven government debt pared gains after a key German sentiment index rose unexpectedly, but Spanish stocks weakened after an election result that could hamper the ruling party's austerity plans.
"The data was cautiously positive. After the rather disappointing purchasing manager indices (PMI) of last week many did not reckon with such a good Ifo index. So the euro is benefiting from," said Antje Praefcke at Commerzbank.

Hedge Funds Capitulating Buy Most Stocks Since 2010 (Source: Bloomberg)
Hedge funds trailing the Standard & Poor’s 500 (SPX) Index for the last five months are giving up on bearish bets and buying stocks at the fastest rate in two years. A gauge of hedge-fund bullishness measuring the proportion of bets that shares will rise climbed to 48.6 last week from 42 at the end of November 2011, the biggest increase since April 2010, according to data compiled by the International Strategy & Investment Group. The Bloomberg aggregate hedge fund index gained 1.4 percent last month, lagging behind the Standard & Poor’s 500 Index by 2.65 percentage points. Money managers struggling to catch up with the gains have contributed to the rally that pushed the S&P 500 up 29 percent since October as economic reports beat estimates. Market bulls say they are a continuing source of cash that can move stocks higher.
Bears say capitulating hedge funds are further evidence that equities have risen too far, too fast as economic growth remains sluggish, warning that the pool of potential buyers is being dep leted. “It’s encouraged me to gradually increase my exposure to stocks,” Barton Biggs, founder of hedge fund Traxis Partners LP in New York, said in a March 23 phone interview, referring to an improving economic outlook. “The shift has occurred gradually in the six or so months since the beginning of October. I’d be inclined to raise my net long further because the potential to the upside would be greater” should the S&P 500 fall 5 percent to 7 percent, he said.

Services Displace Factories in Driving U.S. Expansion: Economy  (Source: Bloomberg)
Service producers are taking over from manufacturing as the driver of the almost three-year-old U.S. expansion. The end of the recession in June 2009 triggered the biggest surge in production in a decade, propelled by rising demand from overseas and the need to replenish inventories and upgrade equipment. That is now giving way to increasing sales at places like restaurants, transportation companies and temporary-help agencies, leading to gains in employment that have bolstered the world’s largest economy. “The pickup in services provides a broader base for the economic expansion and actually is a source of more sustainable growth,” said Richard DeKaser, deputy chief economist at Parthenon Group LLC in Boston and the third-best forecaster of gross domestic product in the two years to February, according to data compiled by Bloomberg News. “We’re going to continue to see job gains close to the magnitude we’ve seen in recent months, with services likely contributing a large share.”
The economy has created more than 200,000 jobs in each of the past three months, and the increase in payrolls since September has been the biggest since 2006, according to figures from the Labor Department. The Institute for Supply Management’s services index, which includes mining and construction companies and tracks about 88 percent of the economy, has exceeded its factory gauge in seven of the last eight months, opening the biggest advantage in three years in February.

Bernanke Says Accommodative Policy Needed (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke said while he’s encouraged by the unemployment rate’s decline to 8.3 percent, continued accommodative monetary policy will be needed to make further progress. The drop in unemployment may reflect “a reversal of the unusually large layoffs that occurred” in 2008 and 2009, and this process may now be over, Bernanke said in a speech today in Arlington, Virginia. Reducing the jobless rate further will probably require a quicker expansion of business production and consumer demand, which “can be supported by continued accommodative policies,” he said. Stocks rallied as some investors bet Bernanke’s comments indicate further policy easing is still under consideration. The Federal Open Market Committee on March 13 raised its assessment of the economy while repeating that interest rates are likely to stay low at least through late 2014.
“The bar is, and has been, pretty low for additional action,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York. “The narrative is, while we have had some improvement, it is not that great, and it’s not clear it is going to last. Now is not the time to be thinking about taking back any of the accommodation.”

Pending Sales of US Existing Homes at Near Two-Year High (Source: Bloomberg)
The number of Americans signing contracts to buy previously owned homes held in February near an almost two-year high, a sign that the real estate market may be stabilizing. The index of pending home purchases fell 0.5 percent to 96.5 after a 2 percent increase the prior month, the National Association of Realtors said today in Washington. January’s reading of 97 was the highest since April 2010. The median forecast of 41 economists surveyed by Bloomberg News called for a 1 percent rise. Residential real estate is recovering even amid the threat of more foreclosures, which are weighing on property values. A pickup in hiring, growing incomes and mortgage rates near a record low are making houses more affordable, driving demand. “Demand is gradually improving,” said Yelena Shulyatyeva, a U.S. economist at BNP Paribas in New York. “It’s really a problem of oversupply in the housing market. A lot will depend on how fast the foreclosures are being processed.”

Bernanke Hesitates to Extol Economy to Keep Reputation (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke may be hesitating to extol the improving economy -- in part to preserve the central bank’s own reputation. While Fed policy makers upgraded their assessment of the outlook at their March 13 meeting after the most-robust six- month period of job growth since 2006, they reiterated their plan to keep interest rates near zero until at least late 2014, citing still “elevated” unemployment and “significant downside risks.” Bernanke said today that continued accommodative policy will be needed to make further progress. Bernanke’s caution is “appropriate,” said Peter Hooper, chief economist at Deutsche Bank Securities Inc. The Fed chairman risks damaging his credibility by being too optimistic so soon after adopting the 2014 pledge in January and before having conviction about the economy’s momentum, Hooper said.
Policy makers fueled speculation in 2011 that monetary tightening was coming by laying out their exit strategy, and they don’t want to guide the market prematurely again, he added. “They were not at all discouraging some talk about the exit” a year ago, Hooper said in an interview from his New York office. “They’re not going to make that mistake twice. Bernanke is going to be very patient.”

Fed’s Inflation Gauge Reveals 2008 High a Distant Threat (Source: Bloomberg)
Even after the worst rout since 2010, the U.S. bond market shows the economy is unlikely to maintain its strength without help from the Federal Reserve. While the Fed triggered this month’s 2.2 percent loss in 10-year Treasuries when policy makers raised their assessment of the economy following a March 13 meeting, everything from derivatives to mortgage securities indicates that investors don’t expect a repeat of the bear markets seen in 1994 and 2009, two of the worst years ever for bonds. Declining unemployment, rising consumer confidence and strength in manufacturing may give way to more sluggish growth as George W. Bush-era tax breaks end and $1 trillion of mandatory federal budget cuts kick in. Even with oil back above $100 a barrel, the Fed’s preferred measure of gauging the outlook for inflation shows consumer prices will rise at half the pace of 2008 when it accelerated to 5.6 percent.
“We’ve seen this story in 2010 and 2011, where it looks pretty good in the first half and then we have to change our tune in the second half,” said Robert Tipp, the chief investment strategist in Newark, New Jersey, at Prudential Financial Inc., which oversees $300 billion in bonds.

Plosser Sees No Need for More Stimulus as Economy Recovers (Source: Bloomberg)
Philadelphia Federal Reserve Bank President Charles Plosser said he doesn’t currently see any need for additional monetary stimulus as the economy recovers. “The economy’s doing better, we’re gaining some traction,” Plosser said in an interview with Bloomberg Television in Paris today. “We’re not entirely out of the woods. But I’ve got some cautious optimism. If the economy evolves as I think it will, barring some extraordinary events, I don’t think there’ll be any need for further accommodation or further QE.” Plosser said on Feb. 29 that he believes the U.S. economy will improve this year and that the Fed, which has committed to keeping its key rate near zero through 2014, may need to raise borrowing costs “sooner than people expect.” Economic growth accelerated to 3 percent in the fourth quarter and the unemployment rate fell last month to an almost three-year low of 8.3 percent.
Under Chairman Ben S. Bernanke, the Fed has purchased $2.3 trillion of Treasuries and mortgage debt in two rounds of so- called quantitative easing, known as QE1 and QE2.

Dollar Trades Near Lowest This Month Versus Euro on Fed (Source: Bloomberg)
The dollar traded 0.1 percent from its lowest level this month against the euro after Federal Reserve Chairman Ben S. Bernanke said accommodative monetary policy is still needed, reducing demand for U.S. assets. The greenback has weakened against all but one of its 16 major counterparts this year and Bernanke’s comments added to speculation the Fed will embark on a third round of quantitative easing, or QE3. The yen weakened as Asian stocks extended a global rally in equities. The euro remained higher after a two- day advance against the yen amid optimism European finance ministers will agree to bolster the region’s debt-crisis firewall when they meet March 30. “The U.S. dollar is going to find it difficult to rally,” said Andrew Salter, a strategist in Sydney at Australia & New Zealand Banking Group Ltd. (ANZ) Bernanke’s comments “were taken to mean the chances of QE3 were more likely,” Salter said.
The dollar traded at $1.3362 per euro at 10:05 a.m. in Tokyo, little changed from $1.3359 yesterday, when it touched $1.3368, the weakest since Feb. 29. The greenback has declined 3 percent this year against the common currency.

Berkshire’s NetJets Forms China Venture on Luxury Demand (Source: Bloomberg)
NetJets Inc., the business-jet operator owned by Warren Buffett’s Berkshire Hathaway Inc. (BRK/A), will form a venture in China as rising wealth and trade spurs demand for luxury flights. The China operations will be part-owned by investors including Hony Capital and Fung Investments, according to a statement yesterday. NetJets, once Buffett’s “No. 1 worry,” is expanding in China as the country’s growing economy stokes flights by local and overseas customers, the company said. “The aviation industry is really picking up now in China,” Ernie Edwards, president of Embraer SA’s executive-jet division, said in an interview at a trade show in Shanghai. NetJets agreed in 2010 to buy as many as 125 Phenom 300 business jets from the Brazilian planemaker.
Expansion in Asia builds on NetJets’ decision in January to deepen a partnership with Germany’s Deutsche Lufthansa AG (LHA) for private-jet services to 3,000 North American airports. The deals allow NetJets, which serves business customers and wealthy families, to nurture ties with clients flying outside the U.S.

MF Global’s Counsel Resisted Giving Assurances on Transfers (Source: Bloomberg)
MF Global Holdings Ltd. (MFGLQ) General Counsel Laurie Ferber twice resisted providing assurances to JPMorgan Chase & Co. (JPM) that the broker was complying with rules to segregate customers’ collateral, saying language in a draft provided by the bank was too broad. Ferber said JPMorgan was “specifically interested in two transfers” that occurred the morning of Oct. 28. The first was a $200 million transfer from a segregated customer funds account at MF Global Inc., the firm’s brokerage, to a “house” account, followed by a second transfer of $175 million from the house account to a London subsidiary’s account at JPMorgan. “Although I had no reason to believe that any non- compliant transfers from segregated accounts had occurred or would occur, I did not think that any individual officer or employee should be asked to issue such a broad certificate,” Ferber said in testimony prepared for a House Financial Services subcommittee hearing tomorrow.
Any employee making such an assurance, she said, would have had to personally handle all the transfers or been able to review all the transactions within the available timeframe. Representative Randy Neugebauer, a Texas Republican who leads the Financial Services investigations subcommittee, will hold a third hearing on the bankruptcy that left a customer funds shortfall estimated at $1.6 billion.

Japan Revival to Cap BOJ Stimulus as Tankan May Rebound (Source: Bloomberg)
The Bank of Japan’s Tankan survey is likely to show that big manufacturers have become less pessimistic, adding to signs of an economic revival that will bolster the case for capping stimulus measures this year. The quarterly index of sentiment will rise to minus 1, the best reading since September, according to the median forecast of 20 economists surveyed by Bloomberg News. The gauge was at minus 4 in December, with the negative number meaning pessimists still outnumber optimists. The data is due April 2. Improving sentiment in Japan, signs the European debt crisis is easing, and better economic data from the U.S may signal that the world is nearer to returning to sustainable growth. At the same, any limiting of bond purchases by the Japanese central bank will fuel criticism from lawmakers who want Governor Masaaki Shirakawa’s board to do more to end decade-long deflation.
“Legislators are likely to keep pushing for more easing because deflation won’t go away even if the BOJ eases further in April,” said Masamichi Adachi, senior economist at JPMorgan Securities in Tokyo and a former central bank official.

Indonesia Fuel-Price Rise Needed to Protect Growth, Basri Says (Source: Bloomberg)
Indonesia must raise fuel prices to curb a subsidy bill that threatens to sap funds from pivotal health, education and road and port building programs, an adviser to President Susilo Bambang Yudhoyono said. Maintaining subsidies “would have a really bad impact” on growth by causing the fiscal deficit to exceed the legal limit of 3 percent of gross domestic product, forcing cuts in more productive spending, National Economic Committee Vice Chairman M. Chatib Basri said in an interview with Bloomberg Television in Hong Kong on March 23. Surging oil prices led China to boost fuel costs the most in more than two years this month and has added pressure on nations from Indonesia to India to raise tariffs. A proposed 33 percent increase being debated by the Indonesian parliament may cause inflation to double to 7 percent by year-end, Basri said.
“The hike is necessary because more than 90 percent of the subsidy is enjoyed by the middle class” and thus “mistargeted,” Fauzi Ichsan, senior economist at Standard Chartered Plc in Jakarta, said in an e-mail yesterday. “The bigger the gap between domestic and global fuel prices, the more widespread will hoarding and smuggling be, bloating the subsidy.”

BOE Says European Debt Concerns Persist as Yields Stay Elevated (Source: Bloomberg)
The Bank of England said investors remain concerned about the euro-area outlook even after measures by policy makers helped reduced some tensions in markets. “Concerns about the indebtedness and competitiveness of some euro-area countries persisted and remained a key influence on financial markets,” Chief Economist Spencer Dale wrote in the bank’s Quarterly Bulletin, published in London today. Still, in the three months to March 9, “financial-market sentiment improved considerably over this period amid a range of actions by policy makers, both in the U.K and abroad.” Italian Prime Minister Mario Monti said over the weekend that Spain’s struggle with its finances could revive contagion in Europe as finance ministers prepare a deal to strengthen the region’s firewall. The Bank of England noted in the bulletin that sovereign bond yields in some countries remain “elevated.” It also said that the European Central Bank’s three-year loans, or Long-Term Refinancing Operation, helped ease bank funding pressures.

Orban Punished by Investors as Hungary Retreats From IMF Talks (Source: Bloomberg)
Hungarian Prime Minister Viktor Orban is pushing back as investors and European officials renew their drive to force him to relax his hold on power in return for financial aid. Pressed by a resurgent opposition party calling for Hungary to pull out of the European Union, and looking to protect his expansion of authority, Orban is retreating from a Jan. 6 pledge to meet EU preconditions to negotiate financial help from the International Monetary Fund. Investors are punishing the premier by driving up bond yields and pushing down the forint, busting a rally that began with the promise of a swift bailout deal. The loan talks have yet to begin and Orban, 48, has yet to make the necessary legal changes to reverse the greater influence his government has asserted over the judiciary and the central bank.
“The reason there hasn’t been a deal with the EU and the IMF is because the political cost is deemed to be too high for the prime minister,” Gabor Orban, who helps manage $2.5 billion at Aegon Fund Management in Budapest and is not related to the premier, said in a phone interview. “The government is playing for time and is trying to avert compromising to ensure Hungary’s financing.”

Monti Signals Spanish Euro Risk as EU to Bolster Firewall (Source: Bloomberg)
Italy’s Prime Minister Mario Monti warned that Spain could reignite the European debt crisis as euro-area ministers this week prepare a deal to strengthen the region’s financial firewall. Monti pointed to Spain’s struggle to control its finances ahead of a finance ministers meeting in Copenhagen starting on March 30, where officials will seek agreement to raise a 500 billion-euro ($664 billion) ceiling on bailout funding. “It doesn’t take much to recreate risks of contagion,” Monti said during the weekend at a conference in Cernobbio, Italy. Days after his Cabinet approved a bill to overhaul Italy’s labor laws, Monti praised Spain’s efforts to loosen work regulations while advising it to focus on cutting the national budget. Spain “hasn’t paid enough attention to its public accounts,” he said.
The euro crisis has eased after the European Central Bank last month boosted liquidity through three-year loans to banks, while European Union leaders this month sealed a second Greek bailout package. Italian and German confidence indexes rose today as Spanish and Italian bonds gained.

Citigroup Says Dutch No Longer Part of Euro-Area Core (Source: Bloomberg)
The Netherlands, the fifth-largest euro economy, shouldn’t be counted in the core of the common currency as its borrowing costs climb, Citigroup Inc. said. “The poor performance of the Dutch economy should make it very difficult for the country to reduce its general government deficit,” Juergen Michels, chief euro-area economist at Citigroup in London, and three other economists said in a March 23 note to investors. The Netherlands is in a weaker position than Germany, Finland and Luxembourg, he said. Prime Minister Mark Rutte’s minority coalition must find at least 9 billion euros ($12 billion) in budget cuts this year, equal to 1.5 percent of gross domestic product, to meet European Union deficit rules by 2013 and protect the top credit grade that France and Austria lost in January. The Dutch budget shortfall is forecast at 4.6 percent of GDP in 2013, exceeding the 3 percent EU limit for a fifth year.
“Financing conditions in the Netherlands have tightened, creating pressure on the country’s highly leveraged households, which is likely to lead to further contractions in house prices and domestic demand,” Michels said. The Dutch economy entered its second recession in three years during the second half of 2011 and unemployment has risen for two quarters to 6 percent.

Australian Mortgage Arrears Rise Unexpectedly as Housing Stalls (Source: Bloomberg)
Australian home loan delinquencies rose unexpectedly as a stalling housing market kept a lid on financing options for homeowners, Fitch Ratings said. Mortgage payments overdue by more than 30 days rose to 1.57 percent of the value of loans in the three months ended Dec. 31, from 1.52 percent in the third quarter, according to the London- based ratings firm’s Australian residential mortgage performance index. “Stagnation in the housing market limits the refinance and sale options for borrowers in financial distress,” James Zanesi, an analyst at Fitch, wrote in the statement. “The increase in mortgage rates and the usual Christmas spending are likely to lead to an increase in arrears during the first quarter of 2012.” The number of “low-doc” loans more than 30 days late climbed to 6.6 percent in the third quarter from 6.3 percent in the previous three months.

20120327 1008 Global Commodities Related News.

Corn futures spent much of the day in positive territory, but softened around midday and finished at or near their daily lows with May and July futures 8 3/4 and 8 1/2 cents lower, respectively, and deferred months posting slightly lighter losses. Spillover from soybean futures helped corn futures to post gains for a good portion of the day, but ultimately, fundamentals won out, and the market softened into the close, with funds selling a net 10,000 contracts for the day. (Source: CME)

Corn Market Recap for 3/26/2012 (Source: CME)
Mon 26 Mar 2012 14:30:00 CT
May Corn finished down 8 3/4 at 637 3/4, 18 1/4 off the high and 1/2 up from the low. July Corn closed down 8 1/2 at 636. This was 1/4 up from the low and 16 3/4 off the high. May corn experienced the lowest close since March 8th and closed near the low end of a 19 cent range. The market was expected to open lower on continued good weather in the US but a surge higher in soybeans and a positive influence from outside market forces (gold, equity markets, US dollar) helped to support a strong rally into the mid-session. More soybean/corn spread activity on ideas that soybeans need to rally to attract acres helped to spark the aggressive selling from spread traders. December corn saw the lowest close since January 20th. Strength in wheat failed to provide much support and there was more talk of excellent early planting weather to help pressure. Weekly export inspections came in at 22.2 million bushels which was below trade expectations and compares with 31.36 million necessary each week to reach the USDA forecast for the season. The COT report showed strong buying from fund traders last week to build their net long position. However, trend-following fund traders are now net long 197,756 contracts which some traders believed is showing an overbought condition. May Rice finished up 0.205 at 14.805, equal to the high and 0.145 up from the low.

Wheat futures closed mostly 4 to 6 cents higher in Chicago, mostly 4 to 5 cents higher in Kansas City and mostly 2 to 5 cents higher in Minneapolis. That was near the middle of today's range, including overnight trade, but in the lower end of the day session. Wheat futures were supported throughout the session by short-covering and weakness in the U.S. dollar index. (Source: CME)

Wheat Market Recap Report (Source: CME)
Mon 26 Mar 2012 14:27:00 CT
May Wheat finished up 5 1/4 at 659 1/2, 11 off the high and 9 1/2 up from the low. July Wheat closed up 5 3/4 at 670 1/4. This was 10 1/4 up from the low and 10 off the high. May wheat closed moderately higher on the session but well off of the early highs. A steady flow of selling in corn helped pull the market off of the highs after a surge higher on short-covering early in the day. The break in the US dollar and some growing concerns for dryness in Western Europe helped to support a bounce early in the session. Fund trader short-covering helped drive the market sharply higher into the mid-session. US weather looks favorable but while traders see improving crop conditions for this afternoon's weekly update and maybe next week as well, there is more and more concern that the crop has advanced so fast that more and more of the crop is vulnerable to cold weather damage into mid-April and this may have helped to support some buying. More talk that the extended forecast models and dry and colder into the second week of April and traders fear the potential for some freeze damage. Weekly export inspections came in at just 15.26 million bushels which was well below the range of estimates and compared with 19.4 million necessary each week to reach the USDA forecast for the season. May Oats closed down 1/4 at 332 3/4. This was 1/2 up from the low and 7 1/2 off the high.

GRAINS-Soy extends gains on poor crop outlook, corn, wheat ease
NEW DELHI, March 26 (Reuters) - U.S. soybeans inched up after rising more than 1 percent in the previous session due to lingering concerns about the drought-induced cut in South American crops and signs U.S. farmers may plant more corn at the expense of the oilseed.
"The USDA is likely to lower its forecast for soy production in South America and that is the biggest support to prices in Chicago," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia.

U.S. corn area most in nearly 70 years
Chicago, March 26 (Reuters) - U.S. farmers will soon be planting what could be the most corn acres since 1944 as profitable prices should have them favoring that crop versus others, and that push for acres will keep the Chicago Board of Trade corn futures market on investors' radar in coming months.
Old-crop corn futures contracts--May, July, and September-- are already at hefty premiums to new-crop months and may retain their bullish fervor because of the snug stocks. New-crop contracts may see pressure from the huge seedings and potential record crop...assuming normal growing weather.

U.S. soy acreage to rise after futures rally
CHICAGO, March 26 (Reuters) - U.S. farmers will devote the fifth largest area ever to soybeans this spring as a futures market rally over the winter boosted enthusiasm for the crop.
The average of analysts' estimates for U.S. 2012 soybean plantings was 75.393 million acres, according to a Reuters survey of 25 market watchers. A year ago, soybean acreage was 74.976 million acres.

Philippines set to sign rice supply deal with Cambodia
MANILA, March 26 (Reuters) - The Philippines is close to signing a government-to-government rice supply agreement that would make Cambodia a potential supplier of the grain staple to Manila, along with Vietnam and Thailand, agriculture officials said on Monday.
The Southeast Asian neighbors aimed to sign a memorandum of understanding (MOU) on rice supply in early April, similar to Manila's three-year deal with its major supplier Vietnam, Philippines Agriculture Secretary Proceso Alcala said.

Canada's Harper says Viterra bid not 'primarily' foreign
March 25 (Reuters) - Canadian Prime Minister Stephen Harper said on Sunday that the structure of Glencore's  C$6.1 billion ($6.1 billion) deal to buy No. 1 Canadian grain handler Viterra  means it should not necessarily be seen as a full foreign takeover.
Harper's comments come as the Canadian government and regulators begin reviewing the offer by Swiss-based Glencore, already the world's No. 1 commodities trader. Glencore plans to acquire Viterra and then sell off some parts to Canada's Richardson International and Agrium .

Planting US corn early has minimal advantages-agronomists
March 23 (Reuters) - U.S. corn planted in the middle of April, which is the norm, is beneficial to yields while planting earlier than that generally results in a "flat yield response," according to agronomists at the University of Illinois at Champaign.
The hottest start to March since records began in 1871, with record-high temperatures for a week straight in Chicago, has had some U.S. Midwest farmers planting corn earlier than ever.

Italy wheat, maize plantings rise in 2012 -ISMEA
MILAN, March 23 (Reuters) - Italy, a major grain importer in the European Union, has planted more wheat for the 2012 crop and is expected to sow more maize this spring encouraged by high prices on local and international markets, the country's agricultural research centre ISMEA said.
Soft-wheat plantings for 2012 crops are estimated to have risen about 17 percent to 621,000 hectares (ha), with plantings jumping in major northern growing regions, ISMEA said on Friday   in the latest estimate of Italian grain plantings.

Planting Corn Early Has Minimal advantages (Source: CME)
By Thomson Reuters - Mon 26 Mar 2012 12:27:47 CT
 U.S. corn planted in the middle of April, which is the norm, is beneficial to yields while planting earlier than that generally results in a "flat yield response," according to agronomists at the University of Illinois at Champaign.
The hottest start to March since records began in 1871, with record-high temperatures for a week straight in Chicago, has had some U.S. Midwest farmers planting corn earlier than ever.

Russia-Sized Mistakes Driving Corn Prices to Limit: Commodities (Source: Bloomberg)
The gap between traders’ estimates of U.S. corn reserves, the world’s second-biggest, and official figures have reached the size of Russia’s annual consumption, increasing price swings at a time of near-record food costs. Analysts and traders missed numbers reported by the U.S. Department of Agriculture by 225 million bushels (5.7 million tons) on average in the past seven quarters, according to data compiled by Bloomberg. That’s twice as much as in the previous five years and about equal to 12 months of Russian demand. The USDA releases its next quarterly inventory report March 30. Futures fluctuated by the maximum allowed on the Chicago Board of Trade after six of the past seven quarterly reports, with an average swing of 5.8 percent, data compiled by Bloomberg show. Stockpiles (UGRSCNTO) are getting harder to predict as growers build more silos on their land rather than sending it to commercial grain elevators, making it more difficult to measure.
“Analysts’ errors have swung from too low to too high with increasing amplitude,” said William Tierney, the chief economist for Chicago-based research company AgResource Co. and a former USDA analyst. “The industry has to do a better job.”

High Crop Prices Pushing U.S. Farmers to Plant Record Acres (Source: CME)
By CME Group - Mon 26 Mar 2012 12:00:29 CT By Bruce Blythe
American farmers this year are poised to sink more corn and soybeans into the soil than they ever have, as historically high crop prices motivate the likes of Jerry Gulke, who operates about 700 acres near Rockford, Ill. “You’re going to plant every conceivable acre you can get your hands on,” Gulke, who also runs a market advisory service, the Gulke Group, said last week. “We could blow the lid off production this year, but we still have to plant the crop.” Gulke and other farmers are gearing up for what’s expected to be one of the most important growing seasons in memory. U.S. inventories of corn, the country’s biggest and most-valuable crop, are projected to reach a 16-year low late this summer, making it vital farmers come through with a bumper harvest that replenishes supplies and helps reign in food inflation.
Grain traders and analysts widely expect the U.S. Department of Agriculture’s upcoming Prospective Plantings report will confirm record crop acres and an outlook for big corn and soybean harvest as farmers seed their fields, to borrow an old Farm Belt axiom, “fencerow to fencerow.” The report is scheduled for release at 7:30 a.m. Central time March 30. “People are concerned about corn supplies that are essentially as tight as they’ve ever been,” said Sal Gilbertie, president of Portland, Me.-based Teucrium Trading LLC. Teucrium operates an exchange-traded fund based on CME Group corn futures. “We’re going to look to this crop report to see if we have the potential for corn to loosen up that balance sheet,” Gilbertie said in a March 22 phone interview.  “We’re very susceptible to supply disruptions.” The report, Gilbertie added, will provide the “first glimpse” at the U.S. growing season. Midwest farmers typically begin sowing corn in mid-April.
Based on USDA and analysts’ projections, combined corn and soybean seedings will exceed 169 million acres this year. That would be an all-time high and account for more than 264,000 square miles, or enough to nearly cover the entire state of Texas. Prospective Plantings is typically one of the most-anticipated USDA crop reports every year among CME traders and others in U.S. agriculture. Gilbertie and others said interest in the acreage data seems to be particularly intense this year amid tight inventories and a record corn rally that sent futures near $8 a bushel last year. The Prospective Plantings forecasts are based on surveys of more than 85,000 farm operators conducted by the USDA during the first two weeks of March. In theory, the survey-based outlook more closely reflects eventual plantings than previous USDA projections based on the agency’s internal number-crunching.
In February, the USDA said it expected farmers to seed 94 million acres of corn in 2012, which would be up 2.3 percent from 2011 plantings and the highest since 1944. Soybean plantings were estimated at 75 million acres, little-changed from 2011. Both numbers could be slightly higher in the plantings report, several analysts and traders said.

USDA to Release Widely Anticipated Prospective Plantings Report on March 30th (Source: CME)
By CME Group - Mon 26 Mar 2012 09:15:40 CT
The USDA's Prospective Plantings Report is based on a survey of US farmers “intentions” as of early March and sets the stage for the upcoming 2012 crop season. The report will be “faded” by some traders because, after the survey was conducted, there was a surge in soybean prices (relative to corn). These traders believe that farmers will plant relatively more soybeans and less corn because of this recent change in relative prices. However, research shows that, in most years, farmers stick pretty close to their intentions EXCEPT when weather intervenes and prevents farmers from planting all their acreage or forces them switch to another crop.  In addition, changes in foreign supply and demand are gaining increasing importance and can still shock the markets,
Chief Economist for AgResource, William Tierney Jr. PhD has written an article previewing the March 30, 2012, USDA Prospective Plantings Report, and will provide an in-depth look at the expectations and implications of this report in a simulcast on Tuesday, March 27th.

SOFTS-Raw sugar dips, coffee above 17-month low
LONDON, March 26 (Reuters) - Raw sugar futures on ICE inched down early on Monday, with a focus on the outlook for the next crop in centre-south Brazil and a possible authorisation of further Indian exports.
Arabica coffee futures eased, standing just above Thursday's 17-month low, while cocoa inched down weighed by expectations for an ample mid crop in West Africa.

Vietnam March coffee exports up 18.3 pct y/y -Ag Min
HANOI, March 25 (Reuters) - Vietnam exported an estimated 190,000 tonnes, or 3.17 million bags, of coffee in March, up 18.3 percent year on year, well above market expectations, the Agriculture Ministry said on Sunday.
The estimate was lower than 202,000 tonnes shipped in February, the ministry said in a monthly report. Last March Vietnam, the world's second-largest coffee producer after Brazil, exported 160,600 tonnes.

India could allow 1 mln T sugar exports -sources
NEW DELHI, March 23 (Reuters) - Indian ministers could allow a further one million tonnes of sugar exports when they meet on March 26, a government source and traders said, just ahead of top producer Brazil's entry into the market next month when global prices could tumble.  
India, the world's top consumer and the second-biggest producer, has allowed two million tonnes of sugar exports so far in the season that began on Oct. 1.

May cotton futures led price gains, rising 128 points. Deferred futures closed mostly around 70 points higher. All contracts ended near session highs. Cotton futures pulled strength from weakness in the U.S. dollar index today. That encouraged traders to cover short positions as the market tries to recovery from the recent lows.  (Source: CME)

Petra Foods sees 2011/12 cocoa market balanced
SINGAPORE, March 23 (Reuters) - Singapore chocolate maker Petra Foods  expects global cocoa supply to meet demand in the current crop year, but stagnating cocoa output could lead to deficits in the coming years, its Chief Executive Officer said on Friday.
Petra, the world's third-largest supplier of cocoa ingredients, sees global cocoa consumption growing at 2 percent in the crop year to September 2012, but prices will have to rise to encourage farmers to grow more cocoa, John Chuang told Reuters.

Brent oil edges below $125 as Sudan may resume output
SINGAPORE, March 26 (Reuters) - Brent crude edged below $125 as a possible resumption in crude production from South Sudan offset supply worries stemming from news of a sizeable drop in Iranian oil exports due to Western sanctions.
"The geopolitical risk has been overly built into oil prices as we are in a low demand period where inventories are rising," said Tony Nunan, a Tokyo-based risk manager at Mitsubishi Corp.

Global oil outages at 1.2 mln bpd in March-survey
LONDON, March 23 (Reuters) -     Global oil supply outages are running at more than a million barrels a day, a Reuters survey has found, helping provide justification for the United States and Britain should they release strategic reserves in a bid to cut oil prices.
Civil unrest, adverse weather and technical glitches disrupted 1.2 million barrels per day (bpd) of global oil output in March on the 90 million bpd world market, according to a Reuters calculation from information provided by companies, government agencies and traders.

Oil Trades Near Three-Day High After Bernanke Speech (Source: Bloomberg)
Oil traded near the highest level in three days in New York on speculation fuel demand will rise after Federal Reserve Chairman Ben S. Bernanke signaled interest rates will be kept low enough to stimulate the U.S. economy. Futures were little changed after rising a second day yesterday. Reducing the jobless rate will probably require a quicker expansion of business production and consumer demand, which “can be supported by continued accommodative policies,” Bernanke said in a speech in Arlington, Virginia. U.S. crude stockpiles probably rose to a six-month high last week, a Bloomberg News survey showed. Prices have gained this year amid concern that tension with Iran will disrupt supplies.
“Oil is at these levels because Bernanke is going to keep interest rates lower,” said Jonathan Barratt, chief executive of Barratt’s Bulletin, a commodity markets newsletter in Sydney. “There’s this premium built into the price with Iran. The news that’ll push oil through $110 can only be one thing” and that’s a military strike, he said. Oil for May delivery was at $107.05 a barrel, up 2 cents, in electronic trading on the New York Mercantile Exchange at 12:16 p.m. Sydney time. It gained 16 cents yesterday to $107.03, the highest close since March 21. Prices are 8.3 percent higher this year and headed for a second straight quarterly gain.

Asia Coal-Australian prices steady, Chinese on sidelines
SHANGHAI, March 26 (Reuters) - Australia's thermal coal price benchmark was flat this week at just above $105 a tonne as Chinese buyers remained on the sidelines and annual price negotiations between Japanese utilities and miners dragged on.
"For now, Chinese buyers are more interested in U.S. thermal coal than Australian but that market could start getting priced out if freight prices rise," said a Beijing-based trader.

Euro Coal-Prices stable but outlook more bearish
LONDON, March 23 (Reuters) - Prices of prompt physical coal were little changed for a fifth day, with bids and offers far apart and no fresh trades reported.
"Everybody was hoping for prices to recover and it's been a slow realisation that it isn't happening -- now it's looking a bit more bearish," one utility source said.  

Iron Ore-Shanghai rebar nears two-month high, inventory slips
SINGAPORE, March 26 (Reuters) - China's benchmark steel futures partially rebounded to approach a two-month high on Monday, after a drop in the country's imported iron ore inventory spurred buying from speculators.
"Market conditions are improving generally. We're seeing continuous drawdown of inventory," said Graeme Train, an analyst with Macquarie in Shanghai.
 
U.S. goes after China sinks in latest import probe
WASHINGTON, March 22 (Reuters) - The United States already has punitive duties on steel pipe, pencils, electric blankets and bedsprings from China. Now it is investigating if imports of stainless steel sinks from the world's second-largest economy are sold at unfairly low prices.
The U.S. Commerce Department on Thursday said it was launching the probe in response to a petition from Elkay Manufacturing, a nearly century-old Illinois company that accuses its Chinese competitors of "dumping" the sinks in the United States at below fair market value.

Cars Sent to U.S. Rise Most Since ‘06 Aiding Wilhelmsen: Freight (Source: Bloomberg)
The fastest growth in U.S. demand for imported cars since 2006 is boosting rates for the vessels delivering them, spurring analysts to predict a 68 percent gain in profit for Wilh. Wilhelmsen ASA, the largest fleet operator. Americans will buy 3.07 million imported light vehicles in 2012, 7.8 percent more than in 2011 and the biggest advance in six years, according to data compiled by Kevin Tynan, an automotive analyst at Bloomberg Industries. Global sales growth of 10 percent will boost daily shipping rates by 13 percent to a four-year high of $17,000, estimates RS Platou Markets AS, an investment bank in Oslo. Shares of Wilhelmsen will rise 29 percent to 48.90 kroner ($8.59) in 12 months, the average of 11 analyst estimates compiled by Bloomberg show.
An accelerating U.S. economy is boosting demand for car carriers at a time when global shipments are already expanding faster than the fleet. The global cargo forecast from Platou is more than twice this year’s 4.3 percent fleet growth seen by London-based Clarkson Plc, the world’s biggest shipbroker. That contrasts with most other types of vessels, where gains in capacity are outstripping additional shipments. “As the market continues a more pronounced recovery in 2012, that’s additional volume that hasn’t been there for several years,” said Jeff Schuster, the senior vice president of forecasting at LMC Automotive, a Troy, Michigan-based research company producing seven-year outlooks for global vehicle sales. “The car-carrier business is going to benefit along with this market recovery.”

Baltic sea index rises, smaller vessels firm
March 23 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, rose further on Friday as three-year low rates in the capesize market were countered by higher rates for smaller vessels.
"The BDI has been slowly climbing higher over the past two months, but even 2,000 points seems like a mountainous journey given that it took 35 trading days to go from 650 points to 900," Arctic Securities analyst Erik Nikolai Stavseth said.

20120327 1007 Soy Oil & Palm Oil Related News.

Soybean futures ended mid-range (including overnight trade), but still posted solid gains with old-crop futures 10 1/4 to 13 3/4 cents higher. The rest of the market ended mostly 5 to 8 cents higher. Soybeans were supported by ongoing concerns with the Brazilian soybean crop and Chinese demand prospects. (Source: CME)

Soybean Complex Market Recap (Source: CME)
Mon 26 Mar 2012 14:27:00 CT
May Soybeans finished up 13 3/4 at 1379 1/2, 9 off the high and 15 1/2 up from the low. July Soybeans closed up 12 1/2 at 1384 1/4. This was 14 3/4 up from the low and 9 1/4 off the high. May Soymeal closed up 4.9 at 377.9. This was 5.5 up from the low and 1.0 off the high. May Soybean Oil finished up 0.55 at 55.43, 0.39 off the high and 0.77 up from the low. May soybeans closed off of the early highs but still sharply higher on the day. Weakness in the US dollar and a surge higher in equity and metal markets helped to drive the market to the highest level since September 16th early in the session. More talk of a smaller South America crop and the potential impact on US demand plus a positive tilt to outside market forces helped to support strong gains early in the session today. Another private forecast from Brazil for a crop of 66.7 million tonnes helped to support the market overnight as this estimate compares with the USDA March estimate of 68.5 million tonnes. Weekly export inspections came in at 24.9 million bushels which was in the range of estimates and compared with just 12.5 million necessary each week to reach the USDA forecast for the season. China is expected to auction 300,000 tonnes of reserve soybeans tomorrow. Traders indicated that the market is in an overbought condition with the non-commercial (fund) traders holding a record high net long position of 211,428 contracts in the last COT report. Funds were noted buyers in soybeans and active sellers in corn today.

U.S. Soy Acreage To Rise After Futures Rally (Source: CME)
By Thomson Reuters - Mon 26 Mar 2012 12:29:47 CT
U.S. farmers will devote the fifth largest area ever to soybeans this spring as a futures market rally over the winter boosted enthusiasm for the crop.
The average of analysts' estimates for U.S. 2012 soybean plantings was 75.393 million acres, according to a Reuters survey of 25 market watchers. A year ago, soybean acreage was 74.976 million acres.

Soy Exends Gains on Poor Crop Outlook. Corn and Wheat Ease (Source: CME)
By Thomson Reuters - Mon 26 Mar 2012 12:25:44 CT
U.S. soybeans inched up after rising more than 1 percent in the previous session due to lingering concerns about the drought-induced cut in South American crops and signs U.S. farmers may plant more corn at the expense of the oilseed. "The USDA is likely to lower its forecast for soy production in South America and that is the biggest support to prices in Chicago," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia.

VEGOILS-Palm oil at new 9-mth high on exports, U.S. plantings eyed
SINGAPORE, March 26 (Reuters) - Malaysian palm oil futures extended gains to a new nine-month high as strong exports data and drought woes in soy-producing South America boosted investor sentiment.
"A higher price is expected as the commodity closed higher for the third consecutive week after breaking a high of 3,270 ringgit," said a trader with a local commodities brokerage in Kuala Lumpur.


FELDA's revenue from the export of palm oil will not be affected, should the government stop importing crude oil from Iran. FELDA chairman Tan Sri Mohd Isa Abdul Samad said this was because the export of palm oil from FELDA to Iran was worth only RM1m a year. (Bernama)

Palm oil prices hit a year high on Monday amid a broader rally in oilseeds triggered by concerns about the soyabean crop in South America. A drought in South America, which grows half the world’s soyabeans, has been pushing up the price of vegetable oil and the commodities they are made from. Rabobank said that the extent of the damage was becoming evident as the harvest in the southern states of Brazil progressed. “We are seeing more and more evidence of yield loss in South America.” Although palm oil stocks remain high, global oilseed production is expected this year to fall by about 9m tonnes while demand is forecast to rise by about 12m tonnes, according to the US Department of Agriculture. Corn and soyabeans usually compete for acreage in the US, and while some agriculture experts had predicted that the rally in oilseeds would upset the acreage forecasts, analysts said that the price increases in soyabeans were not enough to encourage a switch into that commodity as grain prices also remained high. Demand for grains remains high and analysts said farmers in North America, who have started to plant their crops, were still biased towards corn. That would mean that soyabean supply in the new 2012-13 crop year would remain tight as stocks would not be replenished. (Financial Times)

Malaysia’s palm oil exports rose 7.7% in the first 25 days of March from the same period in February, independent market surveyor Intertek said. (Bloomberg)