Tuesday, April 17, 2012

20120417 1817 FCPO EOD Daily Chart Study.

FCPO closed : 3503, changed : +16 points, volume : higher.
Bollinger band reading : correction range bound upside biased.
MACD Histogram : falling lower, buyer taking profit.
Support : 3500, 3470, 3450, 3420 level.
Resistance : 3550, 3620, 3650, 3700 level.
Comment :
FCPO closed recorded small gain with increased volume changed hand. Soy oil price currently rebounding higher after overnight falls while crude oil price currently trading higher.
FCPO traded range bound through out the day with partial roll over activities and traders building position to July contract focusing on tight global edible oil supply and slowing down exports.
Chart wise, the reading remained suggesting a correction range bound upside biased market development.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20120417 1732 FKLI EOD Daily Chart Study.

FKLI closed : 1598 changed : 0 points, volume : higher.
Bollinger band reading : correction range bound upside biased.
MACD Histogram : recovering, buyer seller battling.
Support : 1595, 1590, 1580, 1570 level.
Resistance : 1600, 1610, 1620, 1630 level.
Comment :
FKLI closed unchanged with better volume traded doing about 2 points premium compare to cash market that closed little lower. Overnight U.S. markets closed mixed and today Asia markets ended mostly lower while European markets currently trading little higher.
Still mixed development across the globe with U.S. recorded better than estimate retail data, China foreign direct investment declined for the 5th month and Spain borrowing cost increased to the highest level this year ahead of debt auction.
Back home, FKLI daily chart study still suggesting a correction range bound upside biased market development.
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.

20120417 1701 Regional Markets EOD Daily Chart Study.

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

20120417 1550 Global Market & Commodities Related News.

Soaring Spanish debt costs cap shares, hurt euro
TOKYO, April 17 (Reuters) - Asian shares were capped while the euro fell, as soaring Spanish borrowing costs underscored the fading impact of the European Central Bank's bond purchases and stoked investor nervousness over euro zone debt woes.
"Investors are beginning to question if Spain's fiscal austerity measures could be sustainable as its economy deteriorates, while sluggish growth would push housing prices lower and raise the risk of nonperforming loans ballooning," said Takao Hattori, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities in Tokyo.

FOREX-Euro edges down ahead of Spanish bond auction
TOKYO, April 17 (Reuters) - The euro lost some ground a day after short-covering helped it pull away from two-month lows against the dollar, and remained vulnerable ahead of a Spanish bond auction as euro zone debt jitters showed no signs of abating.
Spain is set to see its borrowing costs leap when it sells short-term bonds after concerns over its deficit and banking sector pushed longer term risk premiums above 6 percent and drove the cost of insuring its debt to a record high.

GRAINS-Wheat, corn rise from 2-week low, soy up on demand
SINGAPORE, April 17 (Reuters) - Chicago wheat rose 0.7 percent as the market recovered from a two-week low on concerns over a freeze in the U.S. Plains threatening the winter crop, while corn edged higher on strong demand.
"We had export inspection figures which were released after the market closed last night and they were pretty supportive for corn," said Victor Thianpiriya, an agricultural commodity strategist at ANZ.

Shift to soy frees up in-demand US corn seed
CHICAGO, April 16 (Reuters) - Minnesota farmer Dave Eiynck was surprised last week when his seed dealer called to say he had obtained a particular kind of corn seed.
It was unusual, as the dealer had previously warned he was unable to fill nearly a third of Eiynck's order for a certain seed variety to cover about 1,320 acres (535 hectares) due to short supplies.

Vietnam March coffee exports ease to 187,000 T-customs
HANOI, April 17 (Reuters) - Vietnam's actual coffee export volume last month dropped 7.3 percent from February to 187,000 tonnes, or 3.12 million bags, the Vietnam Customs said on Tuesday.
Coffee exports between January and March fell 12.8 percent from the same period last year to 500,500 tonnes, the Finance Ministry-run customs department said in its monthly report.

POLL-Rains slow record pace of U.S. corn planting
CHICAGO, April 16 (Reuters) - U.S. corn farmers came off their record planting pace last week as heavy rain over the weekend in key growing areas of the Midwest caused the first delays of the spring, analysts said.
A Reuters poll of 16 analysts pegged corn planting at 17 percent complete as of April 15, up from 7 percent a week earlier.

Fire closes USDA, delays Crop Progress report
WASHINGTON, April 16 (Reuters) - An overnight fire forced the closure of the U.S. Agriculture Department complex on the National Mall and disrupted the flow of data to commodity markets, including a closely watched report on U.S. crop development, officials said on Monday.
The weekly crop progress report, ordinarily released on Monday afternoon, was rescheduled because of the blaze, which fire fighters put out. The report will now be released Tuesday at 4 p.m. EDT (2000 GMT).

Brent slips to $118 on euro zone worries
SINGAPORE, April 17 (Reuters) - Brent crude slipped to $118, continuing its steep decline from the previous session, as Spain's debt woes reignited demand growth concerns and threatened to derail the global economic outlook.  
"Euro zone concerns are affecting all risk assets at the moment, with the bearish zone suggesting that Greece was just the side show and Spain's the real game," said Ben Le Brun, market analyst at OptionsXpress.

LME may allow traders to settle contracts in yuan-FT
SINGAPORE, April 17 (Reuters) - The London Metal Exchange is asking its members whether they would like to use China's yuan currency in settling and clearing contracts and drop the British pound in the roster of currencies available to them, the Financial Times reported on Tuesday.
Offering traders the option to trade in yuan is part of a survey being conducted by the LME to help it design its planned new clearing house, the newspaper said.

London copper holds under $8,000, demand woes weigh
SHANGHAI, April 17 (Reuters) - London copper stayed below $8,000 a tonne for a third day running as investors worried about the outlook for global demand, with Spain's surging borrowing cost threatening to spark a new phase in the euro zone debt crisis.  
"The mood is very cautious and I see prices going down further in the short term as I haven't seen a lot of clients who are willing to buy copper at current prices," said Judy Zhu, commodity analyst at Standard Chartered Bank.

Rio Tinto qtr iron ore output drops on weather
MELBOURNE, April 17 (Reuters) - Global miner Rio Tinto   reported a 10 percent drop in attributable iron ore production in the first quarter, citing a series of weather-related disruptions to ports and mines in Australia.  
Rio Tinto, the world's second biggest producer of iron ore after Vale  and a key supplier to the the Chinese steel sector, said its share of production from mines it owns outright and in joint ventures dropped to 46 million tonnes in the quarter versus 51.2 million tonnes in the previous quarter.

CESCO-Colombia seeks more foreign investment in mining
SANTIAGO, April 16 (Reuters) - Colombia expects to sell exploration rights to its large untapped mineral resources next year as part of its effort to attract foreign investment to develop its gold, coal and silver mining sector.
The government's new national mining agency will coordinate the sale of rights to develop the country's unexplored mineral wealth as it aims to boost its income from mining, which only accounts for around 2 percent of the country's economy.  

Strong quake shakes Chile, no reports of damage
SANTIAGO, April 17 (Reuters) - A powerful 6.5 magnitude earthquake struck near Chile's eastern coastal port of Valparaiso early on Tuesday, shaking buildings as far away as the capital Santiago, but there were no immediate reports of damage or injuries and the country's main copper mines were unaffected.
State emergency office ONEMI said a stretch of coastline was being evacuated as a precaution, but there was no tsunami alert.

Glencore holds dominant LME copper position-traders
LONDON, April 16 (Reuters) - Glencore International  is holding a dominant long position in the London copper market, trade sources said on Monday, as tight supply took the premium paid by investors for cash metal over benchmark three-month futures to its highest in 3-1/2 years.  
London Metal Exchange (LME) data showed that one entity controlled 50 to 80 percent of combined cash contracts and metal inventories . The exchange did not identify the holder, but traders said it was Glencore.  

Rio Tinto qtr iron ore output drops on weather
MELBOURNE, April 17 (Reuters) - Global miner Rio Tinto   reported a 10 percent drop in attributable iron ore production in the first quarter, citing a series of weather-related disruptions to ports and mines in Australia.  
Rio Tinto, the world's second biggest producer of iron ore after Vale  and a key supplier to the the Chinese steel sector, said its share of production from mines it owns outright and in joint ventures dropped to 46 million tonnes in the quarter versus 51.2 million tonnes in the previous quarter.

Reliance Steel ups profit view on stronger demand
April 16 (Reuters) - Metals processor Reliance Steel & Aluminum Co  raised its first-quarter earnings estimate as a result of stronger demand and pricing.
The news sent its stock up over 3 percent to $53.73 in morning trading on the New York Stock Exchange.

Honda to recycle rare earth metals in used parts
TOKYO, April 17 (Reuters) - Honda Motor Co  said on Tuesday it would start the world's first mass-production process to extract rare earth metals from used car parts and recycle the expensive materials mainly controlled by China.
Honda has partnered Japan Metals & Chemicals Co to begin extracting rare earth metals this month from nickel-metal hydride batteries collected from used hybrid vehicles at its dealers around the world, the Japanese automaker said.

Russia's Evraz Q1 steel output down 1.4 pct y/y
MOSCOW, April 16 (Reuters) - Evraz , Russia's largest steel producer, said on Monday its steel production in the first quarter of 2012 fell 1.4 percent year-on-year to 4.33 million tonnes.    
Production of crude steel increased 5 percent compared to the fourth quarter on the back of growth in Russia and in the U.S., while operations in Ukraine and Europe decreased.

Italy 2011 copper, aluminium semi-finished product output down
MILAN, April 16 (Reuters) - Output of copper and alloy semi-finished products in Italy, a major European manufacturer, fell 4.8 percent year on year to 1.058 million tonnes in 2011, according to data from non-ferrous metals association Assomet.
Output of aluminium and alloy semi-finished products in Italy fell 2.8 percent to 822,000 tonnes, according to the data obtained by Reuters on Monday.

Gold edges down with euro; Spain in focus
SINGAPORE, April 17 (Reuters) - Gold edged down, tracking the euro's weakness as investors watched the Spanish debt market with renewed worries about the debt crisis in Europe, but safe-haven demand may lend support to bullion prices.
"We expect that if European credit conditions continue to deteriorate, gold (along with the dollar) could start to better reflect the growing tensions by moving higher on its steam," said Ed Meir, an analyst at INTL FCStone in a research note.

What copper reserves are telling us-CESCO
The last report of the United States Geological Survey corresponding to the year 2011 offers a good perspective of the historical and recent trend of copper reserves. Are copper reserves responding to the stimulus of such high prices?.
The first positive evidence is that copper reserves increased a 28% in the last two years. Undoubtedly, this is a significant change because in the last years the increases have been rather modest. In fact, copper reserves had increased only a 15% from 2002 and 2009. This strong increase in 2010 and 2011, however, must consider that a great part of it corresponds to reserves increases in operating deposits. It is still necessary that the rate of new discoveries increases significantly.

METALS-London copper holds under $8,000, demand woes weigh
SHANGHAI, April 17 (Reuters) - London copper stayed below $8,000 a tonne for a third day running as investors worried about the outlook for global demand, with Spain's surging borrowing cost threatening to spark a new phase in the euro zone debt crisis.  
"The mood is very cautious and I see prices going down further in the short term as I haven't seen a lot of clients who are willing to buy copper at current prices," said Judy Zhu, commodity analyst at Standard Chartered Bank.

PRECIOUS-Gold edges down with euro; Spain in focus
SINGAPORE, April 17 (Reuters) - Gold edged down tracking the euro's weakness as investors watched the Spanish debt market with renewed worries about the debt crisis in Europe, but safe-haven demand may lend support to bullion prices.
Sentiment in the euro remained vulnerable ahead of a Spanish debt auction later in the day. Spain is set to see its borrowing costs leap when it sells short-term bonds after jitters over its deficit and banking sector pushed longer term risk premiums above 6 percent on Monday.

Comex silver stocks hit highest in at least 10 years
April 16 (Reuters) - Silver stockpiles in Comex-monitored warehouses rose to their highest level in at least 10 years, showing near-term supply of the metal is plentiful as mine output holds at record levels and the global economic recovery struggles for traction.
The U.S silver stocks held at the five exchange-approved depositories stood at 141.59 million ounces on Friday, the highest since Reuters data first compiled in 2002. They were up from 140.6 million ounces the previous day and 102.65 million ounces a year ago.

20120417 1528 Global Market & Commodities Related News.

GLOBAL MARKETS-Soaring Spanish debt costs cap shares, hurt euro
TOKYO, April 17 (Reuters) - Asian shares were capped while the euro eased on Tuesday, as soaring Spanish borrowing costs underscored the fading impact of of the European Central Bank's bond purchases and stoked investor nervousness over euro zone debt.
"The market is holding its breath this week to see how much Spanish debt investors pick up and at what yields during Thursday's auction," said Rhoo Yong-suk, an analyst at Hyundai Securities.

COMMODITIES-China, euro zone keep pressure on market
NEW YORK, April 16 (Reuters) - Major commodity markets closed lower on Monday hurt by renewed concerns of a euro zone debt crisis and sluggish Chinese growth, but losses were less than on Friday.  ''There is concern over China's economic growth after last week's GDP data, which is not just weighing on corn and wheat but it's adding pressure on the whole commodity complex," said Ker Chung Yang, a commodities analyst at Phillip Futures in Singapore.

OIL-Oil tumbles 2 pct on early US pipeline reversal
NEW YORK, April 16 (Reuters) - Oil futures tumbled more than 2 percent o n M onday after news a major pipeline reversal that will alleviate a large U.S. bottleneck may start ahead of schedule sparked heavy spread trading.  
"The earlier-than-expected reversal of the Seaway pipeline has triggered selling of the WTI-Brent spread," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.

NATURAL GAS - US natgas futures gain, first time in 5 sessions
NEW YORK, April 16 (Reuters) - U.S. natural gas futures ended higher on Monday for the first time in five sessions, as technical buying lifted prices despite moderate U.S. weather forecasts and record-high supplies that should limit the upside.
"Natgas futures are once again in the midst of a very modest short covering rally ahead of some pretty hot weather," Energy Management Institute's Dominick Chirichella said in a report.

Euro Coal-Prices dip, June ARA trades at $96.90/T
LONDON, April 16 (Reuters) - European physical coal prices dipped again on Monday, pressured by oversupply, utilities and traders said.
"Prices are not going to rise much above these levels, they're more likely to stay at $100 or below for the rest of the year - there's just too much coal from the U.S. and Colombia in traders' hands," one utility source said.

20120417 1020 Local & Global Economy Related News.

Malaysia has set a target of 1.7m metric tonnes for marine fishery production and 800,000 tonnes for aquaculture production to meet rising domestic demand by 2020. Malaysian fisheries director general Datuk Ahmad Sabki Mahmud said that: "In 2011, production from marine fishery was 1.3m tonnes while aquaculture production was 400,000 tonnes.” (Bernama)

Shares on Bursa Malaysia continued to attract foreign buyers last week with RM162m worth of stocks purchased against RM433m bought the week before, said MIDF Research. It was the ninth consecutive week of foreign buying and Malaysian stocks had overtaken Thailand as the region's biggest net beneficiary of foreign investment in equity for the year until last week. During the same period, Malaysia recorded a RM2.48bn inflow compared with Thailand's RM2.47bn while the cumulative net purchase of Bursa-listed shares by foreigners amounted to RM22.8bn since Jan 2010. (Bernama)

The Employees Provident Fund (EPF) expects to invest up to 23% of its investment assets in the international markets, intensifying its investments in global equity and fixed income. Chairman Tan Sri Samsudin Osman said that performance in global equity and fixed income had generated good earnings for its members in 2011 and contributed to the EPF declaring a 6% dividend and total dividend payout of RM24.47bn. Last year, an additional US$5.54bn worth of investments in overseas investment mandates were made and cumulatively, the total capital drawdown in non-Ringgit investments as at year-end 2011 was approximately US$17bn. As at 21 Dec 2011, the fund's total exposure in global investment assets (in terms of cost) was 13.37% of total assets. (Bernama)

India: RBI signals fastest BRIC inflation constrains rate cuts
India's central bank said price pressures must be restrained even as policy needs to shift to help growth, signaling that elevated inflation will limit the magnitude of interest-rate cuts forecast. “Monetary policy has to recognize the need for keeping inflation expectations anchored in an environment of significant upside risks to inflation, while shifting the balance of policy to arrest the deceleration in growth momentum,” the Reserve Bank of India said yesterday in a review of the economy ahead of its rate decision in Mumbai due today. (Bloomberg)

India’s wholesale price index moderated to 6.89% yoy in Mar from 6.95% in Feb, but remains above consensus expectations of a 6.7% rise. (AFP)

The Reserve Bank of India is committed to gradually open the country's capital account fully, but fiscal consolidation is a key pre-condition for such liberalization, Governor Duvvuri Subbarao said. The bank further added that the country must restrain price pressures even as monetary policy needs to shift towards bolstering growth. (WSJ, Bloomberg)

India must restrain price pressures even as monetary policy needs to shift toward bolstering growth, the central bank said. “Monetary policy has to recognize the need for keeping inflation expectations anchored in an environment of significant upside risks to inflation, while shifting the balance of policy to arrest the deceleration in growth momentum,” the Reserve Bank of India said in a review of the economy ahead of its rate decision today. (Bloomberg)

The IMF has cautioned commodity-exporting countries like Indonesia that they could face a tough time in the short term as global commodity prices are forecast to decline. (The Jakarta Globe)

The Bank of Korea lowered its growth projection for 2012 to 3.5% (3.7% previously estimated in Dec), whilst goods exports will increase 4.8% this year (5.0% earlier forecast). (AFP)

Japanese nationwide department-store sales rose 14.1% yoy in Mar (-0.4% in Feb). (Bloomberg)

EU: Seeks bigger IMF war chest on Spanish concerns
European officials travel to Washington this week seeking a bigger global war chest to combat the debt crisis as Spain’s government battles to quell renewed market turmoil over its finances. Three weeks after European leaders unveiled emergency euro-area funding exceeding the symbolic USD1trn mark, concerns about Spain’s position have ratcheted the nation’s borrowing costs to the highest levels this year. Crisis-fighting resources will dominate talks at the International Monetary Fund’s spring meeting in Washington from 20-22 April. (Bloomberg)

World: Kim is chosen to head World Bank, extending US monopoly
Jim Yong Kim was chosen to be president of the World Bank, becoming the first physician and Asian-American to head the lender after emerging markets failed to rally around a challenger to the US monopoly on the job. The World Bank board of directors said it chose Dartmouth College President Kim to succeed Robert Zoellick, whose term ends 30 June. (Bloomberg)

US: Retail sales climb more than forecast on jobs
Retail sales in the US rose more than forecast in March as Americans snapped up everything from cars and furniture to clothes and electronics. The 0.8% gain was almost three times as large as projected and followed a 1% advance in February, Commerce Department figures showed. An improving job market is giving households confidence to sustain spending in the face of higher gasoline costs, boosting sales at chains such as Gap Inc. and Target Corp. Strengthening consumer demand raises the odds that the world’s largest economy will weather a recession in Europe and slower growth in China. (Bloomberg)

US: Confidence among homebuilders fell in April to a three-month low
The National Association of Home Builders/ Wells Fargo index of builder confidence decreased to 25 this month from 28 in March, the Washington-based group said yesterday. Economists projected no change in the index, according to the median forecast in a Bloomberg News survey. (Bloomberg)

US: Companies boosted inventories in February as sales rose
Companies in the US increased inventories in February as sales picked up, indicating factories will probably keep receiving orders as businesses rebuild stocks. The 0.6% rise followed a revised 0.8% advance the prior month, the Commerce Department reported yesterday in Washington. The median projection in a Bloomberg News survey called for a 0.6% gain. Sales climbed 0.7% after a 0.4% gain in January. (Bloomberg)

The US economy is in a better position to deal with high gasoline prices, Treasury Secretary Timothy Geithner said, adding that unseasonably warm winter had lowered overall energy costs for consumers. (Reuters)

20120417 1019 Malaysia Corporate Related News.

Bumi Armada unit gets USD200m pipeline contract from Russia’s Lukoil
Bumi Armada's indirect unit Bumi Armada Caspian LLC has secured a USD200mil contract from Russia's OAO Lukoil for a pipeline project in the Caspian Sea. It said on Monday the contract involved the engineering, procurement, installation and pre-commissioning of subsea in-field and inter-field pipelines for the Filanovsky field in the Russian sector of the Caspian Sea. Bumi Armada said the completion period of the contract was estimated at 32 months and to be substantially completed by end-2014. (StarBiz)

IGB proposes REIT, comprising The Gardens Mall, Mid Valley
IGB Corp Bhd has proposed to set up and list a real estate investment trust (REIT) on the Main Market, comprising of two malls in Kuala Lumpur. It said on Monday the initial properties would comprise of The Gardens Mall – which is eight-storey retail mall – and Mid Valley Megamall, which is a five-storey retail mall with one mezzanine floor. These properties are currently owned by IGB's subsidiary, KrisAssets. “In conjunction with the proposed REIT establishment and listing, IGB has today acquired a newly established subsidiary, IGB REIT Management SB, to act as the proposed management company for IGB REIT,” it said. (StarBiz)

TSM Global accepts takeover offer from West River Capital
TSM Global has agreed to the proposed takeover offer for its shares at RM1.25 a shares from West River Capital SB (WRC) and the joint offerors, which hold a 28.1% stake. TSM Global said on Monday it was not seeking an alternative offer following the voluntary general offer (VGO). The acceptance deadline expired at 5pm on Monday after it was extended from 6 April. To recap, WRC and the joint offerers – Tzel Capital SB, KYM SB, Cheong Chan Holdings SB, Sierra Indah SB, Datuk Lim Kheng Yew, Lim Tze Thean and Melissa Lim Su Lin – had made a takeover offer for TSM on 28 Feb. (StarBiz)

Khazanah plans USD1.5bn healthcare IPO
Malaysia’s state investor Khazanah Nasional is expected to list its healthcare assets here and in Singapore in the second half of the year, a deal that could fetch USD1.5bn (RM4.6bn), said two sources with direct knowledge of the deal. The dual listing could be the fourth-biggest initial public offering (IPO) in the city state’s history and Malaysia’s second-largest this year after the planned listing of plantation group Felda Global Venture Holdings. A source said the listing was set for June or July, with pre-marketing to start next month. Another source said Khazanah was still making acquisitions “to bulk up the IPO”. (BT)

MMC-Gamuda to subcontract 4km of tunnelling works
MMC-Gamuda Joint Venture SB is looking to subcontract 4km of the My Rapid Transit (MRT) tunneling works to foreign parties, said sources. A source told The Edge Financial Daily that the consortium would subcontract a 4km stretch of the total 9.5km MRT tunneling works to foreign firms and would also lease the machines to them. The source said the subcontract would allow MMC-Gamuda to focus on the more challenging karstic limestone formation which dominates the ground between Pavilion and the south portal at Maluri, Cheras. (Financial Daily)

SC starts probe into Xian Leng
The Securities Commission (SC) Malaysia has started investigations into alleged financial irregularities at publicly listed ornamental fish breeder Xian Leng Holdings. As reported earlier, troubles at Xian Leng surfaced when a forensic audit by PricewaterhouseCoopers (PwC) Advisory Services founds that the company could not account for RM85.7m set aside to build ponds. PwC was engaged in October by Xian Leng to investigate alleged irregularities in capital expenditure incurred by its wholly-owned subsidiary Xian Leng Trading SB and Xian LengAcquatic (Kluang) SB, over a seven-year period from 1 Feb 2011 to 31 Jan 2008. (Financial Daily)

CIMB Group will sign a deal soon to buy 60% of Philippine conglomerate San Miguel Corp's unlisted banking arm, chairman of Bank of Commerce Jose Pardo said yesterday. It would be the first foray by the Malaysian bank in the Philippines; further boosting its regional footprint after it bought some equities and investment banking units from Royal Bank of Scotland Group plc elsewhere in Asia earlier this month. "I was told it would happen shortly," Pardo said when asked about the signing between CIMB and San Miguel, after the sale was reported by local media. He added that the deal needed the approval of the central bank. "I presume if they (CIMB) take 60%, they will have about eight board seats," Pardo said. Medium-sized lender Bank of Commerce has 15 board members. He said San Miguel Properties Inc and San Miguel Retirement Fund, which together hold about 76% of Bank of Commerce, were in negotiations with CIMB about the deal. The deal will be presented to Bank of Commerce shareholders at a meeting on April 24. CIMB's buy-in may be worth about US$200m to US$250m (RM614m to RM767.5m) and could be finalised in the next few days, said a report by the Philippine Daily Inquirer. (Reuters)

Former Prime Minister Tun Dr Mahathir Mohamad hinted that Proton Holdings managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir might not want to continue leading the national carmaker under the ownership of DRB-HICOM. Mahathir, who is also Proton adviser, said in Syed Zainal's case, there was no question of sacking but merely a question of an agreement between the latter and DRB-HICOM as to how best to deal with the problem of redundancy. (Bernama, BT)

Despite being a leader in palm-based biodiesel or palm methyl ester (PME) back in 2005, Malaysia is now losing out to latecomers like Indonesia, Thailand and Colombia, which in turn are competitive players. Malaysia's biodiesel exports were dismal at 50,000 tonnes last year (86,000 tonnes for 2010), which is a far cry compared with Indonesia's exports at 1.37m tonnes. Out of 48m tonnes global CPO production last year, four major palm biodiesel countries produced about 45m tonnes, whereby 8% of their production were converted to PME. (Starbiz)

Sime Darby Bhd plans to spend RM2bn in the next 10 years to upgrade its workers' housing at its oil palm estates to that of mini-townships. By enhancing living standards of its employees at the estates, the group hopes to attract and retain more local talent at its estates. Currently, Sime Darby employs 37,000 workers at its plantations in Malaysia, of whom only 40% are locals. (BT)

Maxis Bhd, which has invested RM250m to upgrade its high speed data network and improve coverage across Sarawak and Sabah, is confident of doubling its sales volume in Sarawak this year, its chief executive officer Sandip Das said Monday. He said Maxis had also increased population coverage in 24 towns in Sarawak, including 80% for its 2G mobile network and 50% for its more advanced 3G network at present. With Hotlink's stake as the country's number one prepaid service and about 14m customers nationwide, he said, Maxis currently had a 40% share of the marker in Sarawak as the no.3 top best seller. (Bernama)

Khazanah Nasional Bhd is expected to list its healthcare assets in Kuala Lumpur and Singapore in the second half, a deal that could fetch US$1.5bn (RM4.64bn), two sources with direct knowledge of the deal told Reuters. The dual listing could be the fourth-biggest initial public offering in the city state's history and Malaysia's second-largest this year after the planned listing of Malaysian plantation group Felda Global Venture Holdings. The IPO will be one of the first after elections in Malaysia that are widely expected to be held in June. Analysts and investment bankers have said Malaysia's IPO pipeline has slowed ahead of the poll because of concerns of market volatility. A second source said the listing was set for June or July, with pre-marketing to start in May. Khazanah's healthcare assets are currently parked under Integrated Healthcare Holdings (IHH), in which Japan's Mitsui & Co Ltd owns 30% stake. (StarBiz)

IGB Corp Bhd proposes to establish and list a real estate investment trust (IGB REIT) on the Main Market of Bursa Securities. The initial investment portfolio of IGB REIT shall comprise a 8-storey retail mall known as The Gardens Mall and a 5-storey retail mall with 1 mezzanine floor known as Mid Valley Megamall (Subject Properties), which are currently owned by the wholly-owned subsidiaries of KrisAssets Holdings Bhd, which in turn is a subsidiary of IGB. KrisAssets, via its subsidiaries, proposes to dispose the Subject Properties to IGB REIT. In conjunction with the Proposed REIT Establishment and Listing, IGB has today acquired a newly established subsidiary, IGB REIT Management Sdn Bhd, to act as the proposed management company for IGB REIT. CIMB, Credit Suisse (Singapore) Limited and HLIB have been appointed as the Joint Global Co-ordinators and Joint Bookrunners for the proposed initial public offering and listing of IGB REIT on the Main Market of Bursa Securities. CIMB and HLIB have also been appointed as the Joint Principal Advisers for the Proposed REIT Establishment and Listing and the Proposed Disposal. CIMB and HLIB, have on behalf of IGB REIT Management, submitted an application to the Securities Commission (SC) for its approval of the valuation of the Subject Properties in conjunction with the Proposed REIT Establishment and Listing (Valuation Application). CIMB and HLIB, have also on behalf of KrisAssets submitted an application to Bursa Securities for its approval on the valuation of the Subject Properties in conjunction with the Proposed Disposal. A separate application for the Proposed REIT Establishment and Listing will be submitted to the SC within 1 month from the Valuation Application, as required under the SC’s Guidelines on Real Estate Investment Trusts and the Capital Markets and Services Act, 2007. The definitive agreements on the Proposed REIT Establishment and Listing and the Proposed Disposal will be executed following the receipt of the relevant approvals from the SC and a detailed announcement on the Proposed REIT Establishment and Listing and the Proposed Disposal will be made accordingly. (BMSB)

The race is heating up among property players gunning for a piece of the long-awaited redevelopment of the 1,215 ha RRI land. While some property players have presented their ideas and registered their interest with the EPF, the land owner and master developer, developers have yet to hear any more details or any formal time line being set. Some quarters reckoned that the project might be delayed due to land conversion, other legal issues, and finalisation of the masterplan. Out of the 1,215 ha, 217 would be retained by the Malaysian Rubber Board and 72 ha for the MRT depot. (Star)

The construction of interim port facilities for the proposed Samalaju deepsea port to serve Sarawak Corridor of Renewable Energy (SCORE) industries may be delayed following the application by a company for an interim court injunction to stop the project. Bintulu Port Holdings, which is tasked to implement the new port project, was served an originating summons by Integrated Marine Works Sdn Bhd (IMW). (Starbiz)

The Securities Commission (SC) Malaysia has started investigations into alleged financial irregularities at the publicly listed ornamental fish breeder Xian Leng Holdings Bhd. It was reported earlier that a forensic audit found that the company could not account for RM85.7m set aside to build ponds. Xian Leng informed Bursa Malaysia early this month that its board of directors had filed a police report on the alleged financial irregularities. (Financial Daily)

20120417 0951 Global Market Related News.

Asia Stocks Swing Between Gain, Loss on U.S. Data, Europe (Source: Bloomberg)
Asian stocks swung between gains and losses after a bigger-than-expected increase in U.S. retail sales countered concern that Europe’s sovereign-debt crisis is spreading after the cost to insure Spanish and Portuguese debt advanced. The MSCI Asia Pacific Index (MXAP) rose 0.05 point, or less than 0.1 percent, to 124.23 as of 9:18 a.m. in Tokyo, after rising as much as 0.1 percent. About the same number of stocks rose as fell prior to the Hong Kong market open. Japan’s Nikkei 225 Stock Average swung between a gain of 0.1 percent and a loss of 0.2 percent, while Australia’s S&P/ASX 200 Index increased 0.2 percent. South Korea’s Kospi Index slid 0.1 percent.

Most Japan Stocks Rise as U.S. Retail Sales Top Estimates (Source: Bloomberg)
April 17 (Bloomberg) -- Most Japanese stocks rose after a bigger-than-expected increase in U.S. retail sales countered lingering concern that Europe’s sovereign-debt crisis is spreading. The Nikkei 225 Stock Average (NKY) gained less than 0.1 percent to 9,474.27 as of 9:05 a.m. in Tokyo, with about 10 stocks rising for every nine that fell. The gauge dropped 1.7 percent yesterday, the most since April 4. The broader Topix index added 0.1 percent to 804.95 today after closing at the lowest level in two months yesterday.

Most U.S. Stocks Rise on Better-Than-Forecast Sales Data (Source: Bloomberg)
Most U.S. stocks advanced, following the biggest weekly loss for the Standard & Poor’s 500 Index in 2012, as a stronger-than-forecast increase in retail sales bolstered optimism about the world’s largest economy. Citigroup Inc. (C) climbed 1.8 percent after fixed-income trading revenue more than doubled. Procter & Gamble Co. (PG) gained 1.5 percent as the world’s largest consumer-products company lifted its quarterly dividend. Apple Inc. (AAPL) slumped 4.2 percent, the most since October, on concern mobile-phone carriers may cut subsidies for the iPhone. Mattel Inc. (MAT), the largest toymaker, dropped 9.1 percent as sales trailed analysts’ estimates.
About six stocks rose for every five that fell on U.S. exchanges at 4 p.m. New York time, as 6.4 billion shares changed hands, or 6 percent below the three-month average. The S&P 500 decreased 0.1 percent to 1,369.57. The Dow Jones Industrial Average gained 71.82 points, or 0.6 percent, to 12,921.41. The Nasdaq Composite Index (CCMP), which has advanced 15 percent in 2012, retreated 0.8 percent to 2,988.40 today. “The U.S. economic recovery looks intact,” Eric Teal, Raleigh, North Carolina-based chief investment officer at First Citizens Bancshares Inc., which oversees $4.5 billion, said in a telephone interview. “Earnings will continue to grind higher. That explains the market resilience.”

Apple Falls for Fifth Day on Concern of Carrier Subsidy Cut (Source: Bloomberg)
Apple Inc. (AAPL) shares fell for a fifth day amid speculation that demand for the iPad may wane and that mobile-phone carriers will cut subsidies for the iPhone, eroding the profitability of Apple’s best-selling products. Verizon Wireless, a U.S. partner of Apple, said last week that it will begin charging customers $30 to upgrade to a new phone. The move suggests mobile-phone service providers may take other steps, including trimming subsidies, to keep sales of the iPhone from eating into their margins, said Walter Piecyk, an analyst at BTIG LLC in New York. “Operators are trying to fight back against the impact that Apple is having on their business,” Piecyk, who last week reduced his rating on Apple to neutral from buy, said in an interview on Bloomberg TV’s “InBusiness With Margaret Brennan.” Apple fell 4.2 percent, the largest decline since Oct. 19, after rising 49 percent this year before today. The shares closed at $580.13, the lowest price since March 13.

Goldman Likes Stocks as Morgan Stanley Sees Danger (Source: Bloomberg)
Treasury yields below zero on an inflation-adjusted basis for only the second time since Dwight D. Eisenhower’s presidency have split Wall Street’s biggest firms, underscoring the relative-value dilemma equity investors face following the biggest first-quarter rally in 14 years. For Goldman Sachs Group Inc. (GS)’s Peter Oppenheimer, U.S. stocks offer a once-in-a-generation buying opportunity after yields on 10-year Treasuries fell to about minus 0.3 percent when the rate of inflation is deducted. Morgan Stanley’s Adam Parker advises caution, saying Federal Reserve stimulus that has led the fixed-income rally can’t last forever. Last month’s jobs growth, which was lower than estimated by any economist in a Bloomberg survey, underscored the economy’s reliance on the Fed’s help since the financial crisis began in 2007. At the same time, record-low yields on Treasuries are driving investors to riskier assets such as stocks, said Howard Ward at Gamco Investors Inc. in Rye, New York.
“Capital will chase returns,” Ward, who helps oversee $35 billion, said in an April 11 phone interview. “There’s a tremendous shortage of investment income and there are fewer places to go to generate that,” he said. “Stocks are to a large extent the only game in town for earning a respectable return.”

European Stocks Rise; International Power Shares Advance (Source: Bloomberg)
European stocks rebounded from their longest stretch of weekly losses since August as companies from International Power Plc (IPR) to Royal KPN NV rallied amid an increase in takeover activity. International Power jumped 3.2 percent after GDF Suez SA agreed to pay 6.4 billion pounds ($10 billion) for the stake in the U.K. utility that it doesn’t already own. KPN climbed after saying it’s reviewing its Belgian mobile-phone unit. French banks paced declining shares. The Stoxx Europe 600 Index rose 0.3 percent to 254.26 at the close in London, paring an earlier rally of as much as 1.2 percent. The gauge fell last week, for a fourth week of losses, amid renewed concern the euro area’s debt crisis is worsening and as China’s economic growth slowed.
“There is volatility out there at the moment,” said Kevin Gardiner, head of global investment strategy at Barclays Wealth in an interview on Bloomberg Television. “When the dust settles, the underlying profitability of average large quoted companies is actually pretty resilient. Investors will eventually come back in and capitalize on that opportunity.”

GLOBAL MARKETS-Spanish debt fears send euro lower
LONDON, April 16 (Reuters) - The euro slumped to a two-month low against the dollar and safe-haven German bond prices hit a record high on Monday as concerns about Spain stirred fears the euro zone debt crisis could get worse.
"Europe will be the focal point for the market this week, especially the results of Spanish bond auctions that may provide clues on how deep this latest crisis is running," said Choi Chang-ho, an analyst at Shinhan Investment & Securities.

FOREX-Euro weak around $1.30 as Spanish debt costs mount
LONDON, April 16 (Reuters) - The euro fell broadly on Monday, dropping to a two-month low against the dollar and the safe-haven yen and reaching a 1-1/2 year trough against the British pound, as Spain rekindled worries about the fragile state of the euro zone economy.
"Pressure is building up on the euro with concerns over Spain dominant," said Jane Foley, senior currency strategist at Rabobank. "The focus will be on Spanish bond issuances this week and while the euro is holding around $1.30, the question is how long more can it be supported around these levels."

Euro Declines Before Spanish Sales, German Confidence (Source: Bloomberg)
The euro fell versus most of its 16 major counterparts before Spain sells securities after borrowing costs climbed to the highest level this year, boosting concern Europe’s debt crisis is spreading. The 17-nation currency weakened against the dollar before reports that may show confidence among investors in Germany, Europe’s biggest economy, fell this month after climbing to a 21-month high in March. Australia’s dollar remained lower after a two-day decline versus its U.S. counterpart before the Reserve Bank releases minutes of this month’s meeting today. “My feeling is that it’s still overall a bearish mood with regard to the euro,” said Kara Ordway, a currency strategist at City Index Group Ltd. in Sydney. The debt sale “will give us a first indication as to how currently people view Spain.”
The euro lost 0.2 percent to $1.3117 at 9:51 a.m. in Tokyo after reaching $1.2995 yesterday, the lowest level since Feb. 16. The shared currency fell 0.1 percent to 105.62 yen after dropping 0.2 percent to 105.67 yesterday. The U.S. dollar was little changed at 80.52 yen after declining yesterday to 80.30, the weakest since Feb. 29.

U.S. Retail Sales Climb More Than Forecast on Jobs: Economy (Source: Bloomberg)
Retail sales in the U.S. rose more than forecast in March as Americans snapped up everything from cars and furniture to clothes and electronics. The 0.8 percent gain was almost three times as large as projected and followed a 1 percent advance in February, Commerce Department figures showed today in Washington. The median forecast of 81 economists surveyed by Bloomberg News called for an increase of 0.3 percent. An improving job market is giving households confidence to sustain spending in the face of higher gasoline costs, boosting sales at chains such as Gap Inc. (GPS) and Target Corp. (TGT) Strengthening consumer demand raises the odds that the world’s largest economy will weather a recession in Europe and slower growth in China.
Households “have the income to propel their purchases now that we’re seeing job growth,” said Russell Price, senior economist at Ameriprise Financial Inc. in Detroit and the third- best forecaster of retail sales for the 24 months ended in March, according to data compiled by Bloomberg. “They have adjusted to the higher price of fuel. The economy now needs to build on its own momentum.”

U.S. Homebuilder Confidence Fell in April to Three-Month Low (Source: Bloomberg)
Confidence among U.S. homebuilders fell in April to a three-month low, a sign the industry is still trying to gain its footing. The National Association of Home Builders/Wells Fargo index of builder confidence decreased to 25 this month from 28 in March, the Washington-based group said today. Economists projected no change in the index, according to the median forecast in a Bloomberg News survey. Readings below 50 mean more respondents said conditions were poor. Borrowing costs close to all-time lows, population growth that may spur more demand for homes and cheaper properties are helping stabilize residential real estate. At the same time, the recovery may take time as the prospect of more foreclosed homes returning to the market competes with new construction.
“Although builders in many markets are noting increased interest among potential buyers, consumers are still very hesitant to go forward with a purchase,” Barry Rutenberg, chairman of the National Association of Home Builders and a builder from Gainesville, Florida, said in a statement. “Our members are realigning their expectations somewhat until they see more actual signed sales contracts.”

No Double-Dip Deja Vu Seen for U.S. Economy (Source: Bloomberg)
Deja vu it ain’t. The U.S. looks unlikely to suffer the same sort of swoon this year as the one in 2011: Household, bank and company balance sheets are stronger, and the shocks hitting the economy so far are weaker, with retail sales rising more than forecast as gasoline prices show signs of slipping from an early-year increase. Consumer-loan delinquencies fell across the board in the fourth quarter, the first time that’s happened in eight years, according to the American Bankers Association in Washington. Banks have reduced leverage, with financial-institution debt as share of the economy at its lowest level in a decade. And corporations are flush with cash: The ratio of liquid assets to short-term liabilities is the highest since 1954, based on data compiled by the Federal Reserve.
“It feels eerily similar to last year, but fundamentally it’s quite different,” said Joseph LaVorgna, chief U.S. economist for Deutsche Bank Securities in New York. He sees the economy growing 3 percent in the fourth quarter from a year earlier, compared with 1.6 percent in 2011. That’s good news for the stock market and for companies such as Discover Financial Services. (DFS) Net income for the three months ended Feb. 29 rose 36 percent to a record $631 million, or $1.18 a share, the Riverwoods, Illinois-based credit-card issuer said March 22.

Banks Seen Dangerous Defying Obama’s Too-Big-to-Fail Move (Source: Bloomberg)
Two years after President Barack Obama vowed to eliminate the danger of financial institutions becoming “too big to fail,” the nation’s largest banks are bigger than they were before the nation’s credit markets seized up and required unprecedented bailouts by the government. Five banks -- JPMorgan Chase & Co. (JPM), Bank of America Corp. (BAC), Citigroup Inc., Wells Fargo & Co. (WFC), and Goldman Sachs Group Inc. -- held $8.5 trillion in assets at the end of 2011, equal to 56 percent of the U.S. economy, according to central bankers at the Federal Reserve.
Five years earlier, before the financial crisis, the largest banks’ assets amounted to 43 percent of U.S. output. The Big Five today are about twice as large as they were a decade ago relative to the economy, sparking concern that trouble at a major bank would rock the financial system and force the government to step in as it did in 2008 with the Fed-assisted rescue of Bear Stearns Cos. by JPMorgan and with Citigroup and Bank of America after the Lehman Brothers bankruptcy, the largest in U.S. history. “Market participants believe that nothing has changed, that too-big-to-fail is fully intact,” said Gary Stern, former president of the Federal Reserve Bank of Minneapolis.

Fed’s Bullard Says U.S. Growth May Reach 3% This Year (Source: Bloomberg)
Federal Reserve Bank of St. Louis President James Bullard estimated U.S. economic growth will quicken from a range of 2.5 percent to 2.7 percent during the first quarter to 3 percent for the entire year. The economy is “on track” and Fed “policy can stay on hold for now,” Bullard said today to reporters after a speech in Logan, Utah. The central bank will probably need to tighten policy during the “last part of 2013,” he said. Central bankers are holding off on increasing monetary accommodation unless the economic expansion falters or prices rise at a rate slower than their 2 percent target, according to minutes of their March 13 meeting. Bullard is the last scheduled Fed official to speak before Chairman Ben S. Bernanke and other policy makers meet April 24-25.
The Fed’s expansion of its balance sheet to $2.87 trillion through purchases of securities known as quantitative easing risks eventually spurring inflation, Bullard said in response to audience questions at the Jon M. Huntsman School of Business at Utah State University. “The Fed is taking a lot of risk with its very large balance sheet,” he said. “It could turn into a lot of inflation if we don’t play our cards right.”

U.S. Minimum Wage Lower Than in LBJ Era Needs A Raise (Source: Bloomberg)
Here’s an unhappy observation about the minimum wage: Congress last increased the rate in stages in 2006, topping it out at $7.25 an hour in 2009, or $15,080 a year. That amount, when adjusted for inflation, is actually lower than what a minimum-wage worker earned in 1968 and is too meager to offer anyone the chance to climb out of poverty, let alone afford basic goods and services. About 10 states are now considering raising the rate, and Senator Tom Harkin, an Iowa Democrat, is proposing to increase the federal rate in three increments to $9.80 an hour in 2014. Many of the initiatives under consideration would smartly tie the minimum wage to the cost of living, meaning that those workers’ wages would finally keep up with inflation.
The past recession was brutal on jobs, household wealth and economic growth. But wages were hit hard, too. Real average hourly earnings have fallen below the level of 2009. Although wages often lag job growth after a recession, the pace of income gains this time around is far slower than in previous recoveries.

Most Stocks Rise as Banks Gain; Treasuries Trim Advance (Source: Bloomberg)
Most U.S. stocks rose, following the biggest weekly decline of the year, as Citigroup Inc. led banks higher and stronger-than-forecast growth in retail sales bolstered optimism in the economy. Treasuries trimmed earlier gains and the Dollar Index retreated. The Standard & Poor’s 500 Index (SPX) fell less than 0.1 percent to 1,369.57 at 4 p.m. in New York while the Dow Jones Industrial Average increased 71.82 points to 12,921.41. About six stocks rose for every five that fell on U.S. exchanges. Ten-year Treasury yields lost less than one basis point to 1.98 percent and the dollar weakened against 10 of 16 major peers as the euro rose 0.5 percent to $1.3142, reversing a 0.6 percent earlier loss. Spanish 10-year bond yields increased nine basis points to 6.07 percent and jumped as much as 18 basis points.
Citigroup led U.S. banks higher after reporting fixed- income trading revenue more than doubled from the fourth quarter. Commerce Department data showed retail sales increased 0.8 percent in March, almost triple the median forecast of economists in a Bloomberg survey. Equities recovered after most stocks fell earlier as gains in Spanish and Italian bond yields fueled concern Europe’s debt crisis was worsening. “The U.S. is a better economic story,” said Madelynn Matlock, who helps oversee about $14.6 billion at Huntington Asset Advisors in Cincinnati. “Retail sales showed that consumers are not being overwhelmed by gas prices. On top of that, corporate earnings should be at least respectable.”

Companies in U.S. Boosted Inventories in February as Sales Rose (Source: Bloomberg)
Companies in the U.S. increased inventories in February as sales picked up, indicating factories will probably keep receiving orders as businesses rebuild stocks. The 0.6 percent rise followed a revised 0.8 percent advance the prior month, the Commerce Department reported today in Washington. The median projection in a Bloomberg News survey called for a 0.6 percent gain. Sales climbed 0.7 percent after a 0.4 percent gain in January. Inventory swings may diminish in the first half of 2012 after helping the economy grow in the fourth quarter at the fastest pace in more than a year. Another report today showed retail sales rose almost three times more than projected, showing consumers are weathering the jump in gasoline prices heading into the second quarter.
“As domestic demand holds up, then we could possibly see inventories build as suppliers try to meet the rising demand, so that will certainly add to activity,” Millan Mulraine, a senior U.S. strategist at TD Securities in New York, said before the report. “Inventories are not going to be the big factor that they were a year or two ago, but they still remain an important factor.” The median forecast for business inventories was based on a Bloomberg survey of 46 economists. Projections ranged from gains 0.4 percent to 1 percent. January’s figure was revised from the 0.7 percent increase originally reported.

World Bank Chooses U.S. Nominee Kim as its New President (Source: Bloomberg)
Jim Yong Kim was chosen to be president of the World Bank, becoming the first physician and Asian-American to head the lender after emerging markets failed to rally around a challenger to the U.S. monopoly on the job. The World Bank board of directors said today it chose Dartmouth College President Kim to succeed Robert Zoellick, whose term ends June 30. A specialist in HIV/AIDS with a Ph.D. in anthropology, Kim, 52, faced rival bids from Nigeria and Colombia. The candidacies “enriched the discussion of the role of the president and of the World Bank Group’s future direction,” the board said in an e-mailed statement. “The final nominees received support from different member countries, which reflected the high caliber of the candidates.” Kim, a graduate of Harvard Medical School, breaks the mold of World Bank presidents, who have been drawn from government and finance.
Kim, who was born in Korea and grew up in the U.S., has pledged to be a bridge between developed and advanced economies at the poverty-fighting institution, which committed $57 billion last year on everything from building roads to taking stakes in companies in emerging economies.

China Adds Treasuries for Second Month on Reserve Growth (Source: Bloomberg)
China, the largest foreign U.S. creditor, increased its holdings of U.S. government securities in February for a second month as the country’s foreign-currency reserves resumed rising. Holdings rose by 1.1 percent to $1.18 trillion in China’s first months of consecutive gains in Treasury debt since July, U.S. Treasury Department data released yesterday show. Net foreign purchases of Treasuries (HOLDTOT) rose $41.2 billion, or 0.8 percent, to a record $5.1 trillion, the data show. China’s currency reserves rose 3.9 percent in the first three months of 2012, reversing the first quarterly decline since 1998, according to China’s National Bureau of Statistics. China doubled the trading band of the yuan versus the dollar on April 14, a move that Stephen Roach, a professor at Yale University and former non-executive chairman for Morgan Stanley in Asia, said signals official confidence in the strength of the economy’s expansion.
“If their reserves continue to grow we should see a channel into Treasuries,” said Shyam Rajan, an interest-rates strategist at Bank of America Merrill Lynch in New York, one of the 21 primary dealers that trade with the Federal Reserve. “Foreign demand should continue to be strong given the indications we have had in the first quarter.”

Bank of Korea Urges ‘Orderly’ Exit From Global Monetary Easing (Source: Bloomberg)
Bank of Korea Governor Kim Choong Soo urged major central banks to plan an orderly withdrawal of excess liquidity and said that further easing may hurt emerging economies and the global economic recovery. Extra loosening “could do more harm than good when the financial markets are already flooded with cheap liquidity but remain nonetheless timid in their lending to the private sector,” Kim said in a speech prepared for a lecture at Goethe University in Frankfurt, Germany. Monetary easing by the U.S. Federal Reserve and the European Central Bank has been “highly correlated” with capital inflows and exchange-rate volatility for emerging economies, Kim said. Financial “spillovers” from advanced economies pose risks to investment and growth for nations including South Korea, he said.
Some investors, including Bill Gross, manager of the world’s biggest bond fund at Pacific Investment Management Co., are betting that the Fed will embark on a third round of large- scale asset purchases as the U.S. struggles with elevated unemployment. In its first two rounds, the Fed bought $2.3 trillion of bonds from December 2008 to June to avert deflation and spur growth.

RBI Signals Fastest BRIC Inflation Constrains Rate Cuts (Source: Bloomberg)
India's central bank said price pressures must be restrained even as policy needs to shift to help growth, signaling that elevated inflation will limit the magnitude of interest-rate cuts forecast to begin today. “Monetary policy has to recognize the need for keeping inflation expectations anchored in an environment of significant upside risks to inflation, while shifting the balance of policy to arrest the deceleration in growth momentum,” the Reserve Bank of India said yesterday in a review of the economy ahead of its rate decision in Mumbai due at 11 a.m. today. Costlier credit, policy gridlock and a weaker global recovery have sapped India’s expansion, spurring predictions of reductions in borrowing costs. At the same time, an oil-price climb, rupee weakness and government spending may fan price increases, with inflation slowing less than estimated in March to 6.89 percent.
“They are still concerned about inflation,” said Prasanna Ananthasubramanian, an economist at ICICI Securities Primary Dealership Ltd. in Mumbai. “It kind of reinforces that the room for big cuts is not there,” while not ruling out a rate cut today, he said.

Spain’s Austerity Threatens Economy, HSBC Says: Tom Keene (Source: Bloomberg)
Spain’s efforts to cut its debt burden and calm the fears of lenders are increasing the country’s risk of a deeper recession and financial crisis, HSBC Holdings Plc’s Madhur Jha said. Spain needs more external financial help to “buy time” for its government to implement reforms to its housing market, pension system and labor market, Jha said in a radio interview on “Bloomberg Surveillance” with Ken Prewitt and Tom Keene. Credit-default swaps insuring Spanish government debt rose today to a record in London, according to CMA, signaling deterioration in investor perceptions of credit quality. “People are beginning to realize the more and more austerity you impose on an economy, the worse it becomes in terms of growth and also in terms of debt sustainability,” said Jha, an HSBC Bank global economist based in London. “There needs to be more in terms of actual financial support.”
Yields on Spain’s 10-year bonds climbed to 6.16 percent today, the highest level since Dec. 1, before trading at 6.07 percent. Credit-default swaps jumped to 521, CMA prices showed. They have jumped from 431 at the start of the month and 380 at the end of 2011. Prime Minister Mariano Rajoy said today Spain must cut its budget deficit to maintain access to financing.

20120417 0950 Global Commodities Related News.

Commodity ‘Super Cycle’ May Be Coming to End, Citigroup Says (Source: Bloomberg)
The “super cycle” of gains across commodity prices may be coming to an end as raw material production rises in response to higher prices and as China’s dominance in demand recedes, according to Citigroup Inc. Commodity markets are reflecting “increased differentiation as a group,” the bank said in a report e-mailed today. While China’s demand for raw materials continues to dominate the outlook for individual commodities, it is “no longer the monolithic force” it was in the past decade, the bank said. “China’s increasingly differentiated impact across commodities is providing abundant evidence that the coordinated commodity super cycle of the last decade may be coming to an end,” New York-based Edward L. Morse, the global head of commodities research, said in a report today.
The Standard & Poor’s GSCI index of 24 raw materials has increased fourfold since 2001, gaining every year except for a 43 percent drop in 2008. Copper and oil rose more than fivefold since 2001 and corn almost tripled. The gauge is up 4.9 percent this year. “Precious metals are slowing down from their rapid appreciation of 2009 and 2010,” the bank said, adding that industrial metals are entering “what may be a more supply abundant phase.” The shift is eroding the appeal of “long-only” investment strategies, according to the bank. The investment cycle has been completed for North American natural gas, bringing “an explosion of supply and lower prices,” with similar cyclical investment trends under way across base metals, Citigroup said.

Hedge Funds Cut Commodity Bets on Slowing China Growth (Source: Bloomberg)
Speculators cut bullish wagers on commodities by the most in 2012 on mounting concern that the slowest Chinese growth in almost three years will curb gains in demand for everything from copper to cotton. Money managers lowered net-long positions across 18 U.S. futures and options by 9.3 percent to 1.01 million contracts in the week ended April 10, the biggest reduction since Dec. 20, data from the Commodity Futures Trading Commission show. Copper holdings tumbled 84 percent, the most since November. Hedge funds are now betting on lower cotton prices. China’s economy, the biggest consumer of energy and metals, expanded 8.1 percent last quarter, less than the 8.4 percent anticipated by economists surveyed by Bloomberg, government data showed April 13. The World Bank cut its growth estimate for the Asian nation to a 13-year low a day earlier. Commodities will “drift lower” this quarter as central banks refrain from adding further stimulus, UBS AG said in a report last week.
“Many areas of the world that have been big sources of demand for commodities are slowing,” said Bill Greiner, who helps manage $13 billion of assets as chief investment officer at Mariner Wealth Advisors in Kansas City, Missouri. “If anything, we expect growth worldwide to be a little softer than people are looking for.”

GRAINS-Corn, wheat at 2-week low on economic woes, US weather
SINGAPORE, April 16 (Reuters) - Chicago corn and wheat slid more than 1 percent to their lowest in two weeks, falling for a second straight session on renewed concerns over global economic growth and rains boosting U.S. crop prospects.
"There is concern over China's economic growth after last week's GDP data which is not just weighing on corn and wheat but it's adding pressure on the whole commodity complex," said Ker Chung Yang, commodities analyst at Phillip Futures in Singapore.

West EU rain relieves grains as crop damage mounts
PARIS, April 16 (Reuters) - Rain in the past week has brought some relief to grain crops in western Europe stressed by winter frost and a long dry spell, but damage already suffered by plants is set to tighten grain supply, with a durum deficit looming in drought-hit Spain.
The combined impact of severe frost in February and persisting dryness led analyst Strategie Grains to slash its forecast for this year's European Union soft wheat crop, putting it below a drought-affected 2011 harvest and raising the prospect of tight supply next season.

French wheat crop ratings down on year-FranceAgriMer
PARIS, April 13 (Reuters) - French grain crops are in worse condition than at this time last year as lack of rain exacerbates stress on plants that had already endured winter frost, farm office FranceAgriMer said on Friday in its first-ever crop ratings report.
An estimated 62 percent of French soft wheat crops were in good or excellent condition by April 9, down from 75 percent a year earlier.

Russia 2011/12 grain export may reach 27.5 mln t
MOSCOW, April 13 (Reuters) - (Opinions in this report represent the views of SovEcon Ltd, an independent research organisation specialising in agricultural production and trade in the former Soviet Union. They should not be seen as reflecting the views of Reuters)  
Russian grain exports could exceed official estimates by 0.5 million tonnes and reach 27.5 million tonnes in 2011/12, as thawing ice allows shipments from shallow-water ports to resume and sales from state stocks boost market supplies.

Corn, wheat at 2-week low on economic woes, US weather (Source: CME)
By Thomson Reuters - Mon 16 Apr 2012 10:06:17 CT
Chicago corn and wheat slid more than 1 percent to their lowest in two weeks, falling for a second straight session on renewed concerns over global economic growth and rains boosting U.S. crop prospects. "There is concern over China's economic growth after last week's GDP data which is not just weighing on corn and wheat but it's adding pressure on the whole commodity complex," said Ker Chung Yang, commodities analyst at Phillip Futures in Singapore.

Recap: Wheat Futures (Source: CME)
By Pro Farmer - Mon 16 Apr 2012 14:51:58 CT
Wheat futures closed 7 1/4 to 10 1/2 cents lower in Chicago, 10 3/4 to 12 1/2 cents lower in Kansas City and mixed in Minneapolis. Chicago and Kansas City futures ended on or near session lows, while Minneapolis wheat finished off session lows with new-crop contracts ending mid-range. Futures were pressured overnight and early this morning by outside markets as traders adopted a risk-off attitude amid Chinese economic growth concerns and euro-zone debt issues, primarily in Spain.

Wheat Market Recap Report (Source: CME)
Mon 16 Apr 2012 14:33:01 CT
May Wheat finished down 7 1/4 at 616 1/4, 9 1/4 off the high and 1 1/4 up from the low. July Wheat closed down 9 at 621 1/4. This was 1 up from the low and 9 1/4 off the high. May wheat closed moderately lower on the session and experienced the lowest close since March 29th and the second lowest close since January 18th. July KC wheat closed sharply lower on the day and moved to the lowest level since July of 2010. The early selling pushed the market lower and futures saw choppy to higher trade for much of the day until late selling drove July wheat sharply lower and to new lows of the day late in the session. More good rains over the weekend for the central plains and ideas that US and European wheat conditions are improving helped to support. A fire in the USDA building caused weekly export inspection data, winter wheat progress and condition reports and spring wheat planting progress reports to be cancelled until tomorrow. Slower China growth was seen as a negative force for commodity markets in general and funds were noted as sellers again for the weekend COT report. More talk of high yield potential for the winter wheat crops was seen as the primary bearish force. May Oats closed down 4 3/4 at 323. This was 3/4 up from the low and 4 1/4 off the high.

Recap: Corn Futures (Source: CME)
By Pro Farmer - Mon 16 Apr 2012 14:51:04 CT
Corn futures settled in the lower end of today's range with losses ranging from 6 to 14 3/4 cents. Corn futures faced pressure today from improved crop prospects. This weekend, rains fell across a wide area of the Corn Belt, recharging dry soils. Improved soil moisture and an early start to planting gives traders hopes of record crop potential this year.

Corn Market Recap for 4/16/2012 (Source: CME)
Mon 16 Apr 2012 14:33:00 CT
May Corn finished down 6 at 623 1/4, 5 3/4 off the high and 2 1/4 up from the low. July Corn closed down 7 1/4 at 613 1/2. This was 2 1/2 up from the low and 5 1/4 off the high. May corn closed moderately lower on the day as the mid-session bounce failed to attract new buying support and the market pushed down for new lows on the day late in the session. The market saw more long liquidation selling pressures today to push futures to the lowest level since March 30th. A good rain event for the western Corn Belt was seen as the primary negative force. Ideas that corn weather is still favorable to a good start to the growing season and a long liquidation selling trend noted in the Commitment-of-Traders report helped to pressure. Traders thought that planting progress this week would be near 17% complete from 7% last week. Some estimates were over 20%. Traders see a slowdown in planting early this week but with a warm and dry 6-10 day forecast for much of the Midwest, traders see corn plantings at or near a record pace by the end of the month. In addition, dry western and northern Corn Belt areas received good rain over the weekend. China demand concerns and weakness in the other grains added to the negative tone. A fire in the USDA building caused weekly export inspection data and corn progress and condition reports to be cancelled until tomorrow. May Rice finished up 0.12 at 15.43, equal to the high and 0.13 up from the low.

Iran buys Indian soymeal at record prices
SINGAPORE/NEW DELHI, April 13 (Reuters) - Iran has stepped up soymeal purchases from India, taking up to 275,000 tonnes in recent deals at record prices as the nation fights Western sanctions that have reduced its ability to source food from other origins.
Global soymeal prices have also been driven up by tightening supplies following a drought in South America and expectations of lower soybean plantings in the United States. The benchmark U.S. soymeal futures  this week climbed to highest since August 2009, to around $396.6 a short tonne.

SOFTS-Sugar eases as Brazil crop nears, coffee dips
LONDON, April 16 (Reuters) - Raw sugar futures eased early, after Brazil's sugar industry group gave a higher-than-expected 2012/13 output forecast, while arabica coffee futures edged lower pressured by a stronger dollar.  Raw sugar futures were slightly lower in early trading, continuing Friday's selloff and close at its lowest level in three months, as dealers digested last week's early crop estimates for Brazil's coming harvest.

El Salvador coffee exports drop 49.6 pct in March
SAN SALVADOR, April 13 (Reuters) - Coffee exports from El Salvador slumped 49.6 percent in March compared to the same month a year earlier, to 140,372 60-kg bags.  
El Salvador's national coffee council said on Friday that exports through the first six months of the 2011/2012 harvesting season, which began in October, totaled 567,668 bags.

Brazil coffee getting by despite erratic rain
BRASILIA, April 13 (Reuters) - Erratic weather is showing no mercy to Brazil's coffee crop as conditions turn dry again, depriving beans of a last moisture boost that would help them swell out more before harvesting begins in about a month, forecasters and agronomists said.
The southern Minas Gerais state coffee belt has seen barely a drop of rain so far in April but the crop can at least rely on the decent top-up of rain it had in March, one of the few months to have regular rainfall since the crop's outset last October.

India to see record sugar export in 2 seasons-Czarnikow
LONDON, April 13 (Reuters) - India is on track to achieve all-time high sugar exports over two straight seasons, 2011/12 (October-September) and 2010/11, commodities house Czarnikow said on Friday.
"Following the excellent harvest this season, Indian exports will exceed 2.5 million tonnes for the second year in succession, which is a new record," London-based Czarnikow said in a statement.

Russia 2011/12 grain export may reach 27.5 mln t
MOSCOW, April 13 (Reuters) - (Opinions in this report represent the views of SovEcon Ltd, an independent research organisation specialising in agricultural production and trade in the former Soviet Union. They should not be seen as reflecting the views of Reuters)  
Russian grain exports could exceed official estimates by 0.5 million tonnes and reach 27.5 million tonnes in 2011/12, as thawing ice allows shipments from shallow-water ports to resume and sales from state stocks boost market supplies.
 
Colombia's coffee output, exports fall in March-growers
BOGOTA, April 13 (Reuters) - Colombia's coffee production in March fell 26 percent from a year earlier to 576,000 60-kg bags, the 12th consecutive monthly decline, due to the continued effects of heavy rains, the country's coffee federation said on Friday.  
The world's top producer of high-quality Arabica beans in 2011 posted a third consecutive year of lower-than-expected coffee output as bad weather, fungus and a tree renovation program keep output below historic averages of 11 million bags.

Recap: Cotton Futures (Source: CME)
By Pro Farmer - Mon 16 Apr 2012 14:55:10 CT
Cotton futures closed sharply lower, with the front-month May contract ending down the daily 400 point limit. Cotton futures initially held up fairly well despite pressure from outside markets. But as the U.S. dollar index softened, the cotton market illogically followed it lower as profit-taking and chart-based selling weighed heavily on futures despite the reversal in many outside markets.

Brent falls below $120 on China data, Euro zone worries
SINGAPORE, April 16 (Reuters) - Brent crude fell below $120 on Monday as growing worries about the global economy from Europe to China, the world's No. 2 oil consumer, reinforced concerns about slowing demand for petroleum.
"The weaker-than-expected Chinese data appears to be the key driver of the market right now," said Tetsu Emori, a Tokyo-based commodities fund manager at Astmax Investments.

Oil Trades Near Two-Day High in New York on Retail Sales (Source: Bloomberg)
Oil traded near the highest close in two days in New York after a bigger-than-expected increase in retail sales boosted speculation that a recovering U.S. economy may bolster fuel demand in the world’s biggest crude consumer. Futures were little changed after rising for the third day in four yesterday. Retail sales climbed 0.8 percent in March, Commerce Department data showed, compared with a median projection of 0.3 percent in a Bloomberg News survey. The spread between the Brent oil contract and New York prices narrowed to the lowest in seven weeks after Enbridge Inc. (ENB) and Enterprise Products Partners LP (EPD) said they would reverse the flow of the Seaway pipeline earlier than previously planned. Crude for May delivery was at $103.16 a barrel, up 23 cents, in electronic trading on the New York Mercantile Exchange at 9:42 a.m. Sydney time. The contract yesterday gained 10 cents to $102.93, the highest close since April 12. Prices are 4.4 percent higher this year.
Brent oil for June settlement plunged $2.53, or 2.1 percent, to $118.68 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark contract’s front-month premium to West Texas Intermediate closed at $15.31, the lowest since Feb. 28

Russia's May crude export fee to decline to $448.6/T
MOSCOW, April 16 (Reuters) - Russia's duty on crude oil exports for May will decline to $448.6 per tonne from $460.7 in April after oil prices weakened, calculations by the finance ministry and Reuters showed on Monday.
This was in line with preliminary estimates.

India oil refining capacity to surge 46 pct by March 2017
NEW DELHI, April 16 (Reuters) - India's oil refining capacity will exceed 6.2 million barrels per day (bpd) by March 2017 from about 4.26 million bpd now, Oil Secretary G.C. Chaturvedi said in a speech delivered to an industry function on Monday.
India and other emerging markets are boosting refining capacity to feed rising regional demand, while their counterparts in the United States and Europe restructure or shut plants as fuel sales slow.

S.Korea urges G20 to be ready to act on oil prices
SEOUL, April 16 (Reuters) - South Korean Finance Minister Bahk Jae-wan has urged fellow G20 nations to send a strong message at this week's meeting in Washington that they are ready to take action on high oil prices, including releasing strategic oil reserves if necessary.
A government source in the world's fifth-largest crude oil importer has previously said South Korea would be prepared to join a possible coordinated release of strategic reserves although Bahk told reporters on Monday that it had not received a request.

Gold Sales Drop in March on Signs of Stability, Perth Mint Says (Source: Bloomberg)
Gold sales from Australia’s Perth Mint, which processes all of the country’s bullion, declined 9.6 percent last month as signs of an accelerating economic recovery in the U.S. curbed demand for haven investments. Sales of gold coins and bars dropped to 38,123 ounces from 42,161 ounces a year earlier, according to data e-mailed by the mint after an April 13 interview with Neil Vance, wholesale manager at the facility in Western Australia that was founded in 1899. Silver sales slumped 39 percent to 698,559 ounces, it said. Bullion prices dropped in February and March as U.S. non- farm payrolls climbed, boosting signs that the world’s largest economy is recovering as the Federal Reserve holds interest rates at a record low. Sales from the mint may rebound later this year following a pattern seen in 2011, Vance said.
“What’s happened is a little bit more stability in world markets at the moment, and some of the interest has leveled off,” Vance said by phone from Perth. “Since the global financial crisis hit, we’ve experienced peaks and troughs, and we believe at the moment we’re just in a trough.” Immediate-delivery gold, which dropped 2.4 percent in February and a further 1.7 percent in March, traded at $1,651.22 an ounce at 8:01 a.m. in Singapore. Spot silver was at $31.48 an ounce after declining 7 percent last month.

Gold Sales Drop in March on Signs of Stability, Perth Mint Says (Source: Bloomberg)
Gold sales from Australia’s Perth Mint, which processes all of the country’s bullion, declined 9.6 percent last month as signs of an accelerating economic recovery in the U.S. curbed demand for haven investments. Sales of gold coins and bars dropped to 38,123 ounces from 42,161 ounces a year earlier, according to data e-mailed by the mint after an April 13 interview with Neil Vance, wholesale manager at the facility in Western Australia that was founded in 1899. Silver sales slumped 39 percent to 698,559 ounces, it said. Bullion prices dropped in February and March as U.S. non- farm payrolls climbed, boosting signs that the world’s largest economy is recovering as the Federal Reserve holds interest rates at a record low. Sales from the mint may rebound later this year following a pattern seen in 2011, Vance said.
“What’s happened is a little bit more stability in world markets at the moment, and some of the interest has leveled off,” Vance said by phone from Perth. “Since the global financial crisis hit, we’ve experienced peaks and troughs, and we believe at the moment we’re just in a trough.”

20120417 0950 Soy Oil & Palm Oil Related News.

ITS CPO export down 14.8% to 594,798 tonnes for the period of 1~15 Apr 2012.
SGS CPO export down 13.5% to 606,804 tonnes for the period of 1~15 Apr 2012.


Drought Draining Reserves of Oils Amid Record Demand (Source: Bloomberg)
Demand for edible oils is climbing to a record as drought damages crops across South America, leaving buyers with the smallest stockpiles in three decades. The use of soy, palm, rapeseed and six other oils will rise 3.9 percent this year, reducing the ratio of reserves to demand to the lowest since 1977, the U.S. Department of Agriculture estimates. Palm, the most-consumed oil, will advance 8.9 percent to 3,800 ringgit ($1,240) a metric ton in Kuala Lumpur by Dec. 31, the highest since February 2011, according to the median of 11 analyst and trader estimates compiled by Bloomberg.
While wheat dropped 23 percent and corn lost 19 percent in the past year as farmers reaped record crops, oilseed prices are surging after drought parched fields across South America, the biggest soybean-producing region. U.S. growers are planting the most corn acres since 1937 and reducing soybean plantings to the smallest in five years, the government estimates. Many farmers bought most of their seeds by January. Since then, soybeans have jumped 19 percent and palm oil 13 percent. “The edible-oil market is tightening up more quickly than anyone expected,” said Wayne Gordon, an agriculture strategist at UBS AG who warned almost a year ago that drier weather would parch South America crops. “It’s in rationing mode. We have yet to see the peak in prices.”

Recap: Soybean Futures (Source: CME)
By Pro Farmer - Mon 16 Apr 2012 14:49:58 CT
Soybean futures were the downside price leader in the grain markets today, finishing mostly 11 to 16 3/4 cents lower, with nearby contracts leading losses. Meal and soyoil saw strong spillover pressure, with soyoil leading losses in the product markets. Early weakness was tied to strength in the U.S. dollar index, but even as the dollar weakened, pressure on soybean futures intensified as traders were focused on lightening risk and taking profits.

Soybean Complex Market Recap (Source: CME)
Mon 16 Apr 2012 14:33:01 CT
May Soybeans finished down 16 3/4 at 1420, 15 3/4 off the high and 4 1/2 up from the low. July Soybeans closed down 16 1/2 at 1424 1/4. This was 4 3/4 up from the low and 15 1/2 off the high. May Soymeal closed down 4.4 at 391.4. This was 1.0 up from the low and 4.5 off the high. May Soybean Oil finished down 0.86 at 55.66, 0.83 off the high and 0.06 up from the low. May soybeans closed sharply lower on the session and saw the lowest close since April 4th. A bearish tilt to outside market forces and slower than expected crush demand plus weakness in other grain markets was enough to spark selling pressures early in the session today. The NOPA crush report this morning showed March soybeans crushed at 140.53 million bushels which was well below trade expectations which were up near 143.8 million. Even with the lower than expected soybean crush, oil stocks came in higher than expected at 2.363 billion pounds. The negative demand news plus more talk that the market is overbought helped to pressure. The COT report on Friday showed a record high net long position from non-commercial traders (funds) as of April 10th for meal and a near record high for soybeans. A fire in the USDA building caused weekly export inspection data and weekly crop progress data to be cancelled until tomorrow. While the equity markets saw some strength and the US dollar shifted from positive to negative on the day, agricultural markets remained under selling pressure on the day with noted weakness in sugar, hogs, cotton, coffee and corn.

VEGOILS-Lower exports weigh on Malaysian palm oil
SINGAPORE, April 16 (Reuters) - Malaysian palm oil futures inched down as a drop in export numbers for the first half of the month saw some traders booking profits, although losses were curbed by tightening edible oil supply.  
"You can't just look at what happen in 15 days and say that demand is weak. There may be other reasons such as timing in shipping. We need to get the overall (export data) for the month (to gauge demand)," said James Ratnam, an analyst at TA Securities in Malaysia.

Record Canada canola area may strain fertilizer stocks
WINNIPEG, Manitoba, April 13 (Reuters) - Canadian farmers' zeal for planting canola may strain fertilizer supplies, dealers say, as near-ideal sowing conditions and lofty crop prices drive up planting interest in the oilseed.
This spring, farmers are expected to sow a record-high 20 million acres or more of canola -- a fertilizer-intensive crop -- with the new-crop futures price hitting a contract high this week. Total acres of most crops are expected to rise because of dry conditions after two years of flooding.

Canada 12/13 oilseed output seen up 7 pct-attache
April 13 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Canada:
"The expectation that Canadian farmers will again seed a record amount of canola in 2012/2013 is forecast to boost Canada's total oilseed production (canola, soybeans and sunflowers) to over 20 million tonnes, nearly 7 percent above 2011/2012 production. Large crops and strong prices are expected to keep crush levels high.

Russia 2012 soybean output seen up 3 pct-attache
April 13 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Russia:
"FAS/Moscow forecasts Russia's sunflowerseed production in 2012 at 8.5 million tonnes, which would be 12 percent less than in 2011 but still the second largest crop in Russian history. Soybean production is expected to continue to increase and is forecast at 1.8 million tonnes, a 3 percent increase from last year, while rapeseed production is forecast at 0.9 million tonnes, a 15 percent decline from 2011.