Friday, June 22, 2012

20120622 1817 FCPO EOD Daily Chart Study.

FCPO closed : 2953, changed : -47 points, volume : lower.
Bollinger band reading : correction range bound downside biased.
MACD Histogram : turned downward, seller in control.
Support : 2950, 2920, 2900, 2850 level.
Resistance : 2970, 3020, 3050, 3070 level.
Comment :
FCPO closed weaker with slowing down volume exchanged. Soy oil price currently trading little weaker after overnight plunged lower while crude oil price continue to test lower support level.
Sluggish global economy outlook resulted broad commodities and crude palm oil to trade weaker on slower demand concern.
Daily chart analysis revised to suggesting a correction range bound downside 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.

20120622 1739 FKLI EOD Daily Chart Study.

FKLI closed : 1606 changed : -0.5 points, volume : higher.
Bollinger band reading : pullback correction upside biased.
MACD Histogram : turned downward, buyer locking profit.
Support : 1600, 1590, 1580, 1570 level.
Resistance : 1610, 1620, 1630, 1640 level.
Comment :
FKLI closed 1 tick lower with better volume traded doing 3 points discount compare to cash market that closed marginally higher. Overnight U.S. markets plunged lower and today Asia markets ended mostly lower while European markets currently having negative development.
Yesterday negative sentiment continues today as U.S. reported below estimate home sales, manufacturing and jobs data while Germany reported drop in business confident.
FKLI daily chart reading remained suggesting a pullback correction upside biased market development.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

20120622 1714 Regional Markets EOD Daily Chart Study.

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

20120622 1621 Global Market & Commodities Related News.

Asian shares fell, while Europe looked set for a lower open as fears about global growth rose in the wake of weak manufacturing data from the United States, Europe and China. U.S. stocks posted the worst day in three weeks on Thursday on mounting evidence that slowing manufacturing growth worldwide threatened corporate profits.

The safe-haven U.S. dollar hovered near a one-week high against a basket of major currencies, supported by a long-anticipated ratings downgrade of the world's major banks by Moody's while traders await the outcome of a European leaders' meeting later in the day.

FOREX-Dollar on offensive after growth worries hit riskier assets
TOYKO, June 22 (Reuters) - The dollar held near a one-week high against a basket of major currencies on Friday, supported by a long-anticipated ratings downgrade of the world's major banks by Moody's while traders await the meeting of European leaders later in the day.
Overnight, the dollar staged its biggest rally in more than three months after key surveys of business activity from China to the euro zone and the United States darkened the outlook for the world economy.

U.S. corn rose, recouping some of its losses from the previous session when bearish economic indicators outweighed the impact of weather concerns, as new-crop corn heads for its biggest weekly gain since October 2010.

Grain shipping in upper US Midwest returning to normal
Port and rail operations for grain shipping were beginning to return to normal in the upper U.S. Midwest on Thursday after heavy rains drenched the region this week, shippers said.

Costa Rica sees 6 pct drop in 2012/13 coffee harvest
Costa Rica's 2012-2013 coffee crop will likely be slightly worse than expected, down 6 percent to produce 1.71 million 60-kg bags, the country's coffee institute ICafe reported on Thursday.

Senate overhauls US farm bill, but time running out
The Senate approved sweeping new U.S. farm legislation on Thursday that would cut almost all traditional farm subsidies while expanding a costly crop insurance program, but chances are slim the bill will pass this year.

Argentina gov't cuts soy crop, wheat area outlook
Argentina cut its outlook for 2011/12 soy production to 40.3 million tonnes from 41.5 million tonnes last month, while also lowering its forecast for 2012/13 wheat area, the Agriculture Ministry said on Thursday.

Brent crude hovered below $90, up slightly after previous session's steep losses, but was headed for it biggest weekly loss in about a year as bleak data from top consumers United States and China muddied the outlook for demand.

Chinese smelters halve Xinjiang aluminium capacity expansion plans
Aluminium smelters in China's Xinjiang province, which aims to become a key production hub of the metal, will add only about a third to half of the capacity expansion originally planned for 2012 as low metal prices and costly power cripple the industry, analysts say.

COLUMN-China still bucks global steel trend
--Andy Home  is a Reuters columnist. The opinions expressed are his own--
LONDON, June 21 (Reuters) - The global steel sector is becoming increasingly polarised to judge by the latest production figures from the World Steel Association.
May's headline figure showed world output growth grinding to a near halt at just 0.7 percent year-on-year.

COLUMN-Indonesia's bauxite tax disrupts Asia aluminium
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
LAUNCESTON, Australia, June 22 (Reuters) - Indonesia's imposition of an export tax on 14 minerals is disrupting Asia's aluminium markets, but the news for producers outside China may not be all bad.
The most obvious distortion is the ramping up of Chinese imports of bauxite from Indonesia in the months prior to the  tax being imposed.

China's imports of Indonesia metals jump on new rule fears
JAKARTA, June 21 (Reuters) - China's imports of bauxite jumped to a record 6.27 million tonnes in May, up 41 percent from a year earlier, a breakdown of monthly data from China's General Administration of Customs showed on Thursday.
The increase has been largely attributed to a rush by Chinese importers to buy bauxite and nickel ore ahead of curbs on shipments by key supplier Indonesia.

Japan May copper cable shipments up 5.9 pct yr/yr
TOKYO, June 22 (Reuters) - Japanese copper wire and cable shipments rose 5.9 percent from a year earlier to an estimated 52,600 tonnes in May, helped by a strong recovery in demand from car makers after earthquake-related production slump last year.
The May estimate was down from 56,036 tonnes output in April, data from the Japanese Electric Wire and Cable Makers' Association showed on Friday.

London copper slipped to two-week lows and is heading for its seventh weekly loss in eight as a faltering global economy dims the outlook for raw material demand, although volumes were thin with top consumer China shut for a holiday.

Gold gave up early gains and was heading for its biggest weekly loss since December after growing fears of a global economic slowdown hit commodities, prompting investors to seek safety in the U.S. dollar.

METALS-Copper hits 2-wk low, eyes 7th weekly loss in eight
SINGAPORE, June 22 (Reuters) - London copper slipped to two-week lows on Friday and is heading for its seventh weekly loss in eight as a faltering global economy dims the outlook for raw material demand, although volumes were thin with top consumer China shut for a holiday.
Copper has lost more than 13 percent in the current quarter and analysts see room for the industrial metal to fall further amid fresh signs that the economies in Europe, China and the United States may get worse before they get better.

PRECIOUS-Gold heads for biggest weekly loss since December
SINGAPORE, June 22 (Reuters) - Gold gave up early gains on Friday and was heading for its biggest weekly loss since December after growing fears of a global economic slowdown hit commodities, prompting investors to seek safety in the U.S. dollar.
Gold has lost some of its safe-haven appeal after financial market turmoil caused by the prolonged debt crisis in Europe and the U.S. Federal Reserve's decision to take only a modest step to boost the economy prompted investors to cash in bullion to cover losses.


Iron Ore-Spot in longest rally since Nov on China view
SINGAPORE, June 21 (Reuters) - Bids for spot iron ore cargoes rose further on Thursday, setting the benchmark rate on course for a tenth straight day of gains in its longest rally in seven months, on trade expectations high steel output in China will support demand for the raw material.
The rally in iron ore comes as prices of other commodities from oil to copper are falling in the face of weaker demand as the global economy slows.

Baltic index rises, capesize recovery seen short-lived
June 21 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, rose on Thursday as activity picked up for vessels carrying iron ore and coal.
The overall index, a gauge of the cost of shipping commodities such as iron ore, cement, grain, coal and fertiliser, rose 6 points or 0.62 percent to 978 points.

20120622 1409 Global Market & Commodities Related News.

China PMI link to commodity imports breaks down
--Clyde Russell is a Reuters market analyst. The views expressed are his own--
LAUNCESTON, Australia, June 21 (Reuters) - Is there still a point at looking China's Purchasing Managers' Indexes as gauges of commodity demand, given the apparent breakdown between the indicators and imports of oil, iron ore and copper?
The HSBC flash PMI did nothing to soothe investor nerves about a hard landing in China, falling to a seven-month low of 48.1 in June from May's final reading of 48.4.

GLOBAL MARKETS-Asia stocks fall as US data darkens global outlook
SINGAPORE, June 22 (Reuters) - Asian shares fell and the safe-haven dollar hovered near its highest in a week-and-a-half after weak manufacturing data from the United States, Europe and China heightened fears over the outlook for global growth.
A long-expected downgrade to the credit ratings of 15 of the world's biggest banks by ratings agency Moody's added to the gloom, which also weighed on commodities and currencies such as the Australian dollar that are linked to resource demand.

COMMODITIES-Slammed by economic data; biggest drop in 2012
NEW YORK, June 21 (Reuters) - Commodities crumbled for a second day in their biggest sell-off this year, with oil, corn and copper tumbling by 3 percent or more after new global economic data darkened the demand outlook for raw materials.
"It is a toxic combination of negative factors," said Eugen Weinberg, head of commodities research at Commerzbank.

Oil-Oil falls below $90 for first time since Dec 2010
NEW YORK, June 21 (Reuters) - Brent crude oil slid nearly 4 percent in heavy trading, dropping below $90 a barrel for the first time in 18 months as weak economic data from China, the United States and Europe pointed to prospects for slower oil demand.
"Supply is outstripping demand and whatever other data you see out there won't change that," said Dominick Chrichella, senior partner at the Energy Management Institute in New York.

NATURAL GAS-US natgas futures trim gains, still end up on stocks data
NEW YORK, June 21 (Reuters) - U.S. natural gas futures trimmed early gains but still ended higher after the government reported a weekly inventory build slightly below market expectations.
"Today's EIA report was bullish from the perspective that the injection was below the consensus level and bullish when compared to last year and the five-year average for the same week," Energy Management Institute's Dominick Chirichella said.

EURO COAL-Rupee record low may hit Indian buying
LONDON, June 21 (Reuters) - Prompt physical coal prices crept higher but the overall outlook remained grim as little fresh spot buying is expected to emerge before autumn, traders and utilities said.
"In contrast to the consensus, which is that prices will soon rebound, we expect the price of the European coal benchmark to fall from $86 to around $70 per tonne by the end of this year and remain weak at least through 2013," UK-based consultancy Capital Economics said in a research note.

20120621 1023 Global Economy Related News.

The leading index decreased 0.5% mom in Apr (-0.5% mom in Mar). The coincident index also dropped by 1.9% mom in Apr (+0.8% in Mar) while the lagging index rose 1.3% mom (+1.1% in Mar). (Department of Statistics)


Economy: Mustapa expects exports to rebound
Malaysia is optimistic its exports will rebound in May and help meet 2012 growth target of 5% to  6%, after slowing by 0.1% in March and April this year. International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the numbers obtained in May indicate that the Malaysia’s exports are well within the target of 5% to 6%. (Business Times)

Investors will still be allowed to own more than 50% of a local bank after the issuance of a new ownership regulation next month, according to Bank Indonesia deputy governor Muliaman Hadad, who stressed that “the approval will be very selective and will apply to very special cases.” (The Jakarta Post)


China: Flash PMI points to rising pressure on job market. HSBC flash PMI readings show continued weakening in export and domestic demand, increasing pressure on job market. June flash PMI was 48.1 vs. final reading of 48.4 in May. (Source: Bloomberg)


China: Said to propose keeping limit on local government loans
China’s banking regulator proposed keeping a cap on local government loans to curtail defaults while encouraging funding for railways, roads and affordable homes, a person with direct knowledge of the matter said. The China Banking Regulatory Commission suggested limiting loans to local government financing vehicles to levels reached at the end of 2011 in a report sent to the cabinet after Premier Wen Jiabao’s call last month for the government to focus on growth. (Bloomberg)

Taiwan: The central bank kept interest rates unchanged for the fourth straight meeting to bolster growth as a faltering global recovery hurts the island's exports, even as it took more steps to curb property prices. The monetary authority, which has held off from raising interest rates for a year, left the discount rate on 10-day loans to banks at 1.875%. (Source: Bloomberg)      

EU: ECB poised to ease collateral rules
ECB is poised to relax its collateral rules for central bank loans to ease strains on commercial banks in Spain and the rest of southern Europe, sources said. ECB officials have broadly agreed to make more types of securities, including certain mortgage-backed and asset-backed securities, eligible as collateral at its lending facilities. Details of the plan still need to be finalized, but a decision is expected on Friday. (Bloomberg)

E.U: Manufacturing output shrank at the fastest pace in three years in June as a worsening fiscal crisis clouded global economic-growth prospects. A gauge of euro-region manufacturing PMI fell to 44.8 from 45.1 in May, London-based Markit Economics said in an initial estimate. That's the lowest in 36 months.(Source: Bloomberg)

U.K: Retail sales rose more than economists forecast in May, recovering some of the ground lost the previous month when poor weather damped demand. Sales including auto fuel gained 1.4% MoM from April, the Office for National Statistics said. Retail sales fell a revised 2.4% MoM in April, curbed by the wettest April on record. Excluding fuel, sales increased 0.9% MoM in May. (Source: Bloomberg)

US: Firings stay elevated and factories retrench
More Americans than forecast filed claims for jobless benefits and manufacturing in the Philadelphia region shrank, adding to evidence the US economic expansion is weakening. Applications for unemployment insurance payments fell by 2,000 to 387,000 in the week ended 16 June, Labor Department figures showed. The median forecast of 45 economists surveyed called for 383,000. Meanwhile, the Federal Reserve Bank of Philadelphia’s factory index dropped to minus 16.6 in June, the lowest level since August. (Bloomberg)

U.S: Sales of existing homes fell in May to 4.55 million. Purchases of existing properties dropped 1.5% MoM to a 4.55 million annual rate last month, figures from the National Association of Realtors showed. (Source: Bloomberg)

U.S: Index of leading economic indicators rose 0.3% MoM in May, propelled by a jump in home-building permits. The Conference Board's gauge of the outlook for the next three to six months increased 0.3% MoM after a 0.1% MoM drop in April, the New York-based group said. (Source: Bloomberg)

U.S: Manufacturing in Philadelphia region shrinks at faster pace in June. The Federal Reserve Bank of Philadelphia's general economic index fell to minus 16.6 in June, the lowest level since August, from minus 5.8 the previous month. The report covers eastern Pennsylvania, southern New Jersey and Delaware. (Source: Bloomberg)

US: Moody’s downgrade top banks
15 of the biggest global banks were downgraded by Moody’s on Thursday, adding to pressure on their borrowing costs and potentially triggering multibillion-dollar collateral calls. Morgan Stanley, seen as the most vulnerable, escaped the three-notch downgrade that Moody’s had threatened but saw its long-term unsecured debt rating cut from A2 to Baa1, three notches above “junk”. Credit Suisse was the only bank under review to incur a three-notch downgrade, from Aa2 to A2. (Financial Times)


US jobless claims in the week ended 16 Jun came in at 387,000, 4,000 higher than consensus (a revised 389,000 in the prior week). (Bloomberg)

US manufacturing PMI slipped to 52.9 in Jun from 53.9 in May, undershooting consensus of 53.8. (Bloomberg)


US stocks tumble as commodities enter bear market on economy
US stocks tumbled, while commodities entered a bear market, after signals of a global slowdown in manufacturing added to disappointing housing and labor market data at the world’s largest economy. Alcoa Inc and Chevron Corp slumped at least 3.4% to pace losses in commodity shares. S&P’s 500 Index futures expiring in September rose 0.2% as bank credit downgrades announced by Moody’s Investors Service matched expectations. The S&P 500 fell 2.2% to 1,325.51 at 4 pm in New York, its second-biggest loss in 2012. The Dow Jones Industrial Average slid 250.82 points, or 2%, to 12,573.57. (Bloomberg)

Global: IMF sees euro crisis at critical stage, sees bank stress
The euro area crisis has reached a “critical stage” and member nations must make a “strong commitment” to the shared currency to stop the plunge in investor confidence, IMF said in a report that recommended issuing common debt as one solution. “Europe’s monetary system needs a closer union of its banks and more fiscal integration to arrest the decline in confidence engulfing the region,” it said. (Bloomberg)

Global: Oil drops below USD80 on signs of slowing economy
Oil in New York tumbled below USD80 a barrel and Brent crude fell under USD90 as reports signalling a global economic slowdown added to concern that demand will slow amid rising supplies. Futures dropped 4%, the most this year as manufacturing slumped in US, China and Europe. Oil stockpiles rose last week to the most since 1990, the Energy Department reported. (Bloomberg)

20120622 1021 Malaysia Corporate Related News.

Bumi Armada: Has RM7.7bn jobs firmly in hand, targets more deals
Bumi Armada, whose orderbook now exceeds RM10bn, is hopeful of winning more jobs in servicing the global oil and gas industry. CEO Hassan Assad Basma said of the RM10bn jobs, RM7.7bn of them are firmly in hand while the remaining ones are optional. Hassan expects a bright outlook for Bumi Armada and said in the next 5 years, there'll be demand for between 120 and 150 units. He added that Africa is a major FPSO market and they aim for US$1bn(RM3.17bn) worth of jobs there. (Business Times)

Sunway: Division inks partnership with spun pile manufacturer
Sunway Group's building materials division, Sunway Spun Pile (Zhuhai) Co Ltd, has inked a memorandum of agreement with spun pile manufacturer Concrete Engineering Products Bhd to strengthen their combined market presence in Asia. Sunway Group said the partnership would provide a sustainable competitive advantage for both companies through an improved and wider range of products, while promoting and developing new markets such as Vietnam and Myanmar. Sunway Spun Pile owns the largest market share in South China, having the single largest production line for pre-stressed high strength concrete in the area. It is also the only manufacturer with a Grade 2 Production Licence from the China Construction Bureau to produce super large pipe piles there. (StarBiz)

Property: AP Land and partner to build more than 14,000 homes for ex-soldiers
AP Land Development Sdn Bhd and  its South Korean joint-venture partner Taeseung Construction Co Ltd will build 14,000 landed homes with total GDV of RM2bn for ex-military servicemen. AP Land chairman Datuk Nazrul Arsad said the indicative prices of these homes would range between RM85,000 and RM185,000 and would be located in Pahang, Perak and Terengganu. Nazrul said the developer could sell the homes at these prices because their costs of construction would be lowered with the use of industrialised building systems (IBS) technology. Nazrul  added that the IBS system is able to lower costs as it uses a standard mould which can be used for the building of many houses. Tauseung's role in the JV includes introducing building methods that could cut construction time from  2 years to about 18 months. (StarBiz)


MAS: Delays turnaround by another year. Malaysian Airline System Bhd (MAS) has tweaked its business turnaround plan and delayed its target to return to profitability by another year to 2014, said MD and CEO Ahmad Jauhari Yahya, who also hinted at the possibility of layoffs. (Source: The Edge Financial Daily)

TNB: May pay MYR1.2b for the undersea cable project. Tenaga Nasional Bhd (TNB) is expected to take up the full cost of building the proposed MYR1.2b undersea cable across the Straits of Malacca. (Source: The Malaysian Reserve)

HSL: Bags Sarawak govt contract. Hock Seng Lee Bhd (HSL) has secured a MYR26m contract from the Sarawak state government to build infrastructure at Demak Laut Industrial Park, Kuching. The scope of works includes earthworks, sandfilling, water reticulation, drainage, road and associated works. The project is due to be completed by January 2014. (Source: Bursa Malaysia)

IOI Corp: Issues USD600m senior notes. IOI Corp Bhd's wholly-owned subsidiary, IOI Investment (L) Bhd, has priced a guaranteed senior notes due to 2012 at USD600m (MYR1.9b). The transaction was oversubscribed by nearly nine times with an order book aggregating USD5.2b. (Source: The Edge Financial Daily)

O&G: MYR16.5b investment for North Malay Basin project. Petroliam Nasional Bhd (Petronas) expects USD5.2b (MYR16.5b) to be invested in the North Malay Basin project, a new integrated gas development in Peninsular Malaysia, over the next five years. (Source: The Star)

Wah Seong wins bid for stake in Petra Energy
Wah Seong has emerged as the winner in the bid to acquire Perdana Petroleum’s 26.9% stake in Petra Energy. In its filing with Bursa, Perdana Petroleum said its wholly–owned subsidiary Wasco Energy, has won the bid following the close of submission on 15 June. However, both companies did not reveal the value of the share sale, pending the execution of a definitive agreement. (Financial Daily)

Mass Rapid Transit awards RM13.8bn jobs in 31 packages
Mass Rapid Transit Corp SB (MRT Corp) has awarded 31 out of the total 85 Klang Valley MRT packages for Line 1 to date, valued at RM13.83bn. MRT Corp director of strategic communications and PR Amir Mahmood Razak said: “23 contracts are currently being evaluated, while the remaining 31, we have yet to issue tenders for.” He added that the total 85 packages for Line 1 would be awarded by December this year. Line 1, which is the Sungai Buloh-Kajang (SBK) line, is made up of two phases. The first is from Sungai Buloh to Semantan, and the second coming from the south of the Klang Valley from Kajang to Taman Maluri. Amir expects the first phase to be operational by Dec 2016, and the second phase by June 2017. (StarBiz)

Construction: MRT Corp awards MYR13.8b in 31 packages. Mass Rapid Transit Corp Sdn Bhd (MRT Corp) has awarded 31 out of the total 85 Klang Valley MRT packages for Line 1 (Sungai Buloh - Kajang) to date, valued at MYR13.8b. The total 85 packages for line 1 would be awarded by Dec 2012. (Source: The Star)            

KUB to sell A&W stake in Thailand
KUB Malaysia will be selling its entire stake in A&W Restaurants (Thailand) Ltd Co by the end of the year. The group is also putting up A&W (Malaysia) SB for sale to help it become profitable again in the year ending Dec 2012. KUB, which has operations in plantations, construction, information technology (IT), property and energy, made a net loss of RM58.8m in 2011 on the back of a RM708.5m revenue. Group MD Datuk Wan Mohd Nor Wan Ahmad said it planned to sell its entire stake in A&W Malaysia to a strategic partner. It might exit the local business for good or buy a stake in the new owner of A&W Malaysia, Wan Mohd said. He declined to name the buyer for A&W Thailand as well as the prospective buyer for A&W Malaysia. (BT)

AirAsia management to propose yearly dividend
Budget airline AirAsia may soon start handing out dividends to its shareholders on a regular basis. AirAsia CEO Tan Sri Tony Fernandes said the management will recommend to its board to adopt a yearly dividend policy. "The shareholders were really talking about dividends and AirAsia has reached a position where we could be a constant dividend payer. The management is going to recommend to the board the dividend policy," Fernandes told reporters after AirAsia's AGM yesterday. He also clarified that the RM7m airport tax it owed to Malaysia Airports Holdings (MAHB) is due to wrong invoices. He added that MAHB will resend the right invoices to AirAsia. (BT)


A consortium led by George Kent Bhd is now tipped to win the systems contract worth RM960m for the Ampang light rail transit (LRT) line extension project. Sources with knowledge on the matter said the winning bidder for the job is expected to be announced by the government within the next few days. Other members of the George Kent consortium include China Railway Construction Corp and Tewet GmbH, a project management consultant firm. (BT)

UMW Holdings Bhd expects revenue contribution from its oil and gas (O&G) division to increase to 25% this financial year. "Currently, O&G contributes about 15% to revenue. We are confident it will increase to at least 20% to 25% this year. This is because we have full employment of rigs and the additional contribution from Garraf power plant project," said president and group CEO Datuk Syed Hisham Syed Wazir. (Financial Daily)

Bumi Armada is optimistic of buying more vessels under its newbuild programme, 'Steel On Water 2', given its increasing focus on deepwater and harsh environments and positive leading indicators in the industry. Its executive director/CEO, Hassan Basma, said there maybe some more purchases subjected to price and market conditions. Hassan said the company would continue to look at a combination of buying and building vessels to expand and optimise its deepwater offshore support vessel (OSV) fleet. "Although the OSV sector is still in recovery mode and there's an oversupply in shallow waters, it's still a good idea to expand fleets as we are in deeper and further end," he told a media briefing. (Bernama)

DRB-HICOM said it was not aware of any legal suit filed by Dany Bahar, the former chief executive of Group Lotus plc, against the company, but was prepared to face him in court. "I am not aware of any suit being filed by Bahar against DRB-HICOM. Nevertheless, we are fully prepared should Bahar wish to take action against Lotus plc or DRB-HICOM. We had anticipated this when Lotus dismissed him," said Sulaiman Yahya, head of corporate communications at DRB-HICOM. "Bahar was dismissed based on the results of Lotus' investigations into his conduct. We shall rely on this evidence should he wish to take legal action. In fact, in doing so, he must be prepared for the truth to be out in the open for all to see," added Sulaiman. (BT)

Petronas has signed three production sharing contracts (PSC) with US firm Hess Corp, kicking off the US$5.2bn North Malay Basin gas project on Malaysia’s east coast. Petronas is looking to commercialise 1.7 standard trillion cubic feet of gas reserves in the area, part of a drive to bring on marginal domestic fields and secure gas with high CO2 content. Petronas and its partners are aiming for first delivery of 100 mmscfd of gas per day by 2013 and 250 mmscfd by 2015. It was not immediately clear if Petronas would export some of the gas. (Reuters)

The new renewable energy (RE) quota under the feed-in-tariff programme (FiT) scheduled for released in the middle of 2012 has been delayed to 4Q this year. The Sustainable Energy Development Authority Malaysia (SEDA) said it has received a directive from the Energy Ministry to review the degression rates especially of solar photovoltaic (PV) in view of the recent drastic drop in prices of solar PV modules. The delay is also due to the need for SEDA to consider amending some of the rules and regulations to ensure the RE stakeholders understand their roles in the FiT mechanism. The delay will not affect existing FiT approved applications. (Financial Daily)

The panel of ministers' on spectrum, headed by Finance Minister and Presidential candidate of the United Progressive Alliance (UPA), Pranab

Mukherjee, deferred its crucial meeting to decide on the spectrum reserve price for the upcoming airwaves auction, raising concerns that the government may not be able to meet the August 31 deadline set by the Supreme Court (SC) to complete the sale process. A telecom ministry official also told that 'Mukherjee's office had not indicated if the Empowered Group of Ministers (EGoM) would meet before he steps down as finance minister on June 24'. "The ball is not in our court - we are hopeful of meeting the deadline set by SC. The government can act quickly whenever needed," this official added. Sector regulator Trai was slated to make a presentation on the impact of spectrum costs on tariffs. "With the meeting being cancelled, Trai submitted its analysis to the Department of Telecomm," the official quoted above said. The EGoM meeting was deferred despite the Prime Minister's Office telling the finance ministry that the panel of ministers on spectrum should take a decision on the reserve price for airwaves and other policy issues related to the auctions before Mukherjee's exit. The delay in fixing the reserve price will add to the uncertainties faced by companies such as Idea Cellular (19.1% owned by Axiata), Telenor, Sistema and Videcon among others whose licences were cancelled by SC earlier this year. (Economic Times India)

Felda Global Ventures Holdings Bhd (FGVH) is undertaking an internal reorganisation to streamline its downstream operations in North America.The exercise also involves a proposed repayment of external debts by TRT-ETGO Inc via the conversion of preferred shares and injection of funds by FGVH. (Financial Daily)

SP Setia wants to expand its landbank across the Penang channel to leverage on the Second Penang Bridge. SP Setia property division (north) GM Datuk S. Rajoo said Batu Kawan is the preferred site to establish the company's footprint in Seberang Prai. "We are anticipating a population growth on the mainland once the second crossing is completed and think it would be prudent to establish a landbank there." (NST)

BLD Plantation, which has 25,100ha of oil palm estates representing 52% of the group's total land area, plans to develop the remaining landbank in five to seven years. Executive chairman Datuk Henry Lau Lee Kong said the group could fully cultivate the undeveloped land within that timeframe if the conditions were right. “Planting an average 3,000ha a year is reasonable. It costs about RM15,000 to develop one ha,” he said after the company AGM. Lau said the group's total plantation area would increase to about 27,000ha by December (this year), of which about 90% would be in maturity stage. Most of the estates are in Miri and Sibu Divisions. BLD, through wholly-owned subsidiary Kirana Palm Oil Refinery Sdn Bhd, is investing RM51m to expand its palm oil refinery in Bintulu with the installation of a second plant. The new plant, which would double existing capacity to 2,400 tonnes per day, is expected to commence operation in the fourth quarter this year. The products from the refinery are exported mostly to China and India. (Starbiz)

Hock Seng Lee Bhd (HSL) has been awarded the Demak Laut Industrial Park, Kuching Division infrastructure works contract worth RM26m. The company said its board had received the letter of acceptance from the Ministry of Industrial Development Sarawak for the project, which is expected to be completed by January 2014. The scope of work involves earthworks, sand filling, water reticulation, drainage, road and associated works. (Financial Daily)

KNM Group Bhd plans to raise up to RM200m from a rights issue to repay borrowings and as working capital. The final repayment amount for bank borrowings and working capital requirements for KNM Group has yet to be finalised, KNM is proposing to undertake a renounceable two-call rights issue of up to 500.5m new shares at an indicative issue price of RM1.00/share. ( BT)

Eversendai Corp Bhd’s unit Shineversendai Engineering (M) Sdn Bhd has been appointed as a supplier for the iron ore distribution project worth RM45.9m at Teluk Rubiah, Manjung, in Perak. The contract is for 12 months. (BT)

20120622 1011 Global Market Related News.

Asian Stocks Drop on Falling Commodity Prices, U.S. Data (Source: Bloomberg)
Asian stocks fell, with the regional benchmark index headed for a one-week low, as raw-material suppliers dropped after commodities entered a bear market and reports on U.S. home sales and manufacturing missed estimates. BHP Billiton Ltd. (BHP), the world’s biggest mining company, slipped 2.6 percent in Sydney. Samsung Electronics Co., the world’s largest mobile-phone maker by sales, fell 3 percent in Seoul. Mitsubishi UFJ Financial Group Inc., Japan’s biggest lender, lost 1.1 percent after 15 global banks were downgraded by Moody’s Investors Service. The MSCI Asia Pacific Index (MXAP) fell 1 percent to 114.41 as of 10:07 a.m. in Tokyo, heading for its lowest close since June 15. Almost 12 shares declined for each that rose in the gauge, which is paring this week’s advance. More than $5 trillion has been erased from global equities since March amid slowing economic growth in the U.S. and China, and a spreading European debt crisis that pushed Spain’s borrowing costs to a record.
“There will be further downside,” said Peter Elston, Singapore-based head of Asia-Pacific strategy and asset allocation at Aberdeen Asset Management, which oversees about $270 billion. “Things are still getting worse. When you have an essentially weak private sector, you’re relying on the government to step in and support things. You’re seeing a gradual weakening of the ability of governments to step in.” Japan’s Nikkei 225 Stock Average (NKY) fell 0.8 percent, while South Korea’s Kospi Index sank 2.1 percent. Australia’s S&P/ASX 200 Index slipped 1 percent. Markets in China are closed today for a holiday.

Japan Stocks Decline as U.S. Data Stoke Slowdown Concern (Source: Bloomberg)
June 22 (Bloomberg) -- Japanese stocks snapped a two-day rally, with shippers and brokerages leading the decline, as disappointing U.S. housing and jobs data stoked concern the global economy is slowing. Losses were limited as the dollar traded above 80 against the yen, lifting exporters’ outlook. Toyota Motor Corp. (7203), which gets 21 percent of its sales in North America, slid 0.5 percent. Mitsui & Co. (8031) led trading companies lower as commodities entered a bear market. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest lender, lost 0.8 percent after 15 global banks were downgraded by Moody’s Investors Service. Olympus Corp. (7733) gained 1.7 percent on a report Sony Corp. (6758) is in final stages of talks to invest in the scandal- hit optics maker. The Nikkei 225 Stock Average (NKY) fell 0.8 percent to 8,749.95 as of 9:53 a.m. in Tokyo with volume 12 percent below the 30-day average. The gauge has added 2.1 percent this week, heading for a third weekly gain.
The broader Topix Index lost 0.8 percent to 747.74 today, with about five stocks dropping for each that rose. “Investors are getting jittery about a global economic slowdown stemming from Europe, where the debt crisis lingers,” said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc., Japan’s biggest brokerage. “Still, the yen is stabilizing and that provides a floor for Japanese stocks. Some makers of electronics and cars may edge higher with the currency’s impact on their earnings easing, limiting losses in the market.”

U.S. Stocks Tumble as Commodities Enter Bear Market (Source: Bloomberg)
U.S. stocks tumbled, while commodities entered a bear market, after signals of a global slowdown in manufacturing added to disappointing housing and labor market data at the world’s largest economy. Alcoa Inc. (AA) and Chevron Corp. (CVX) slumped at least 3.4 percent to pace losses in commodity shares. Bed Bath & Beyond Inc. (BBBY) plunged 17 percent as its earnings forecast trailed estimates. ConAgra Foods Inc. (CAG) rose 2.7 percent as the maker of Hebrew National hot dogs forecast profit that beat estimates. Standard & Poor’s 500 Index futures expiring in September rose 0.2 percent at 5:43 p.m. New York time as bank credit downgrades announced by Moody’s Investors Service matched expectations. The S&P 500 fell 2.2 percent to 1,325.51 at 4 p.m. in New York, its second-biggest loss in 2012. The Dow Jones Industrial Average slid 250.82 points, or 2 percent, to 12,573.57. Volume for exchange-listed stocks in the U.S. was about 7.2 billion shares, or 6.9 percent above the three-month average.
“It’s risk off,” said James McDonald, chief investment strategist at Northern Trust Corp. in Chicago, whose firm manages $717 billion. “The economy is losing momentum. The question will be how much the U.S. and China slow. On top of that, the Fed’s response yesterday was fairly tepid. While they indicated willingness to do more, they haven’t done it.”

European Stocks Decline; Invensys Shares Drop (Source: Bloomberg)
European stocks fell from their highest level in five weeks as the Federal Reserve cut its growth forecast for the U.S. economy and a survey indicated China’s manufacturing industry may shrink for an eighth month. BHP Billiton Ltd. (BHP) and Anglo American Plc (AAL) retreated as commodity prices decreased. Invensys Plc (ISYS) plunged 14 percent, its largest retreat in five months, after saying it’s no longer in talks with third parties. The Stoxx Europe 600 Index declined 0.5 percent to 248.4 at the close, after earlier climbing as much as 0.3 percent and dropping as much as 0.8 percent. The benchmark measure has fallen 8.8 percent from its high on March 16 amid concern that Greece will have to leave the euro currency union.
“The mood of market participants is still characterized by great uncertainty about future developments in Europe and the slowdown in China,” said Stefan Angele, head of investment management at Swiss & Global Asset Management Ltd. in Zurich, where he helps oversee about 80 billion Swiss francs ($84 billion). “On a positive note, with the current mood, all stocks have been pulled to the basement, even those companies that are profitable. There are some real bargains out there.”

German Stocks Retreat Most in Two Weeks on Manufacturing (Source: Bloomberg)
German stocks sank the most in two weeks as the nation’s manufacturing contracted more than expected, the Federal Reserve cut its U.S. growth forecast and factory output in the Philadelphia region shrank. Volkswagen AG (VOW), the world’s second-largest carmaker, fell 3.1 percent. SAP AG (SAP), the biggest maker of enterprise software, dropped 2.7 percent. Deutsche Boerse AG (DB1), the operator of the Frankfurt stock exchange, declined 2 percent. The DAX Index (DAX) slid 0.8 percent to 6,343.13 at the close of trading in Frankfurt, the largest drop since June 4. The benchmark gauge has fallen 11 percent from its 2012 high on March 16 amid growing concern that Greece will be forced to leave the euro. The broader HDAX Index lost 0.7 percent today.
Fed officials cut their estimate for economic growth in 2012 to 1.9 percent to 2.4 percent, down from an April forecast of 2.4 percent to 2.9 percent. The central bank expanded its so- called Operation Twist program at the end of a two-day meeting yesterday, replacing $267 billion of short-term bonds with longer-term debt through the end of 2012.

Emerging Stocks Drop Most in Three Weeks on China Data (Source: Bloomberg)
Emerging-market stocks dropped the most in four weeks as data signaled China’s manufacturing in June may contract for an eighth month and as commodities slumped. The MSCI Emerging Markets Index (MXEF) retreated 1.7 percent to 932.36 in New York, the biggest decline since May 23. Brazil’s Bovespa (IBOV) index sank 2.9 percent, led by Brasil Foods SA, the world’s biggest poultry exporter, and oil company OGX Petroleo & Gas Participacoes SA, as the S&P GSCI commodities gauge slid to the lowest level since 2010. The Shanghai Composite Index (SHCOMP) sank to the lowest level since March 29. Indian shares gained as JPMorgan Chase & Co. upgraded the nation’s equities.
A preliminary reading for a purchasing managers’ index from HSBC Holdings Plc and Markit Economics showed China’s manufacturing may shrink this month. Euro-area services and manufacturing output contracted for a fifth month in June, suggesting the economy may fail to grow in the current quarter. Federal Reserve Bank of Philadelphia’s economic index signaled the worst contraction in manufacturing in almost a year. “This will be perceived as short-term negative for risky assets, including global emerging markets,” Esther Law, a London-based director of emerging-markets strategy at Societe Generale SA, said in an e-mail. “Conditions of China’s manufacturing sector, especially the small- and medium-sized factories, continued to slip. The Fed just did the bare minimum with simply an extension of the operation twist.”

GLOBAL MARKETS-Growth worries hit shares and commodities
LONDON, June 21 (Reuters) - Rising concern about global growth triggered falls in shares and commodities  after data showed Chinese and European factory activity slowing, a day after the Federal Reserve extended its stimulus policy due to a weakening U.S. recovery.
"It is a worryingly steep downturn we are seeing (in Europe) and it is spreading from the periphery, which has been falling at an increased rate, through to Germany," said Chris Williamson, chief economist at Markit, which compiled the data.

Treasuries Remain Higher on Stocks as Gross Warns of Risk Assets (Source: Bloomberg)
Treasuries remained higher following a gain yesterday before German data forecast to show a gauge of business confidence in the euro region’s biggest economy slid to a two-year low. Demand for the safety of U.S. government securities was bolstered as Asian stocks extended a global rout. Bill Gross, who runs the world’s largest mutual fund at Pacific Investment Management Co., said risk markets are vulnerable as the “monetary bag of tricks empties.” Moody’s Investors Service slashed credit ratings on 15 global banks, including Credit Suisse Group AG and UBS AG. “Even Germany can’t avoid a slowdown, showing the instability of Europe’s financial system is affecting the region’s economy,” said Hiromasa Nakamura, who helps oversee the equivalent of $42 billion as an investor at Mizuho Asset Management Co. in Tokyo. “The weakening global economy is leading to risk aversion among investors, putting downward pressure on Treasury yields.”
Ten-year yields were little changed at 1.62 percent as of 9:27 a.m. in Tokyo after falling four basis points in New York yesterday. They have gained four basis points since June 15. The 1.75 percent securities due in May 2022 traded at 101 6/32.

FOREX-Dollar gains, euro falls as German PMI disappoints
LONDON, June 21 (Reuters) - The dollar rose against the euro and growth-linked currencies  after the U.S. Federal Reserve disappointed investors who had expected it to opt for more aggressive easing - a move that would have boosted appetite for riskier currencies.
"The market has got used to terrible numbers from the euro zone. The focus is now on the Spanish auction, but the medium term outlook for the euro remains weak," said Geoff Kendrick, currency strategist at Nomura.

Dollar Heads for Weekly Gain Versus Peers on Stock Losses (Source: Bloomberg)
The dollar headed for a weekly gain against most of its major peers amid a worldwide slump in equities and signs of a global slowdown, boosting demand for safer assets. The euro maintained its biggest decline in six months versus the dollar before data today forecast to show German business confidence fell this month, a sign that the European debt crisis is hurting the region’s growth. Demand for the 17- nation currency was also limited after Moody’s Investors Service lowered credit ratings on 15 global banks, adding to concern that Europe’s fiscal woes are imperiling the world’s financial system. “Should global growth slow, that is likely to lead to buying of the dollar,” said Daisaku Ueno, a senior foreign- exchange and fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities Co. in Tokyo, a unit of Japan’s biggest listed bank. “In an ugly contest, the euro is likely to get more votes than the dollar because of the difference in their economic situations and monetary policy.”
The dollar traded at $1.2550 per euro as of 8:28 a.m. in Tokyo from yesterday, when it climbed 1.3 percent, the sharpest advance since Dec. 12. It has strengthened 0.7 percent this week. The greenback was at 80.18 yen from 80.28. The euro fetched 100.61 yen from 100.69, set for a 1.1 percent gain since June 15.

Aussie, N.Z. Dollars Climb as Data to Boost Easing Bets (Source: Bloomberg)
The Australian and New Zealand dollars climbed as U.S. reports next week may show slowing home sales growth and weakening confidence, boosting speculation the Federal Reserve will add to measures supporting growth. The so-called Aussie strengthened versus most of its 16 major peers this week after Fed Chairman Ben S. Bernanke said June 20 he may consider another round of asset purchases, or quantitative easing, after a two-day central bank meeting this week. Gains in both South Pacific currencies were tempered as Asian stocks extended a global equity rout and after Moody’s Investors Service lowered the ratings for 15 banks, including Credit Suisse Group AG and Morgan Stanley. “There are some prospects the Fed will embark on QE3 somewhere in the later part of the year,” said Lee Wai Tuck, a currency strategist at Forecast Pte in Singapore. “There will still be interest to buy the Aussie and the kiwi on dips, but they’re still a sell on rallies.”
The Australian dollar rose 0.2 percent to $1.0053 as of 11:02 a.m. in Sydney. It was at 80.53 yen after falling 0.7 percent yesterday. New Zealand’s currency gained 0.2 percent to 78.81 U.S. cents. It bought 63.12 yen from 63.14 yesterday. The Aussie was little changed versus the U.S. dollar since June 15, after rising 3.7 percent the previous two weeks, the most since the period through Dec. 9. Its New Zealand counterpart also was little changed following a three-week gain of 4.5 percent.

Sales of Existing U.S. Homes Fell in May to 4.55 Million (Source: Bloomberg)
Sales of previously owned U.S. homes declined in May, showing an uneven recovery in residential real estate. Purchases of existing properties dropped 1.5 percent to a 4.55 million annual rate last month, figures from the National Association of Realtors showed today in Washington. The median forecast of economists surveyed by Bloomberg News called for a 4.57 million pace. The weakest employment gain in a year last month and limited access to credit are restraining a housing industry that’s been supported by record-low borrowing costs and cheaper properties that are drawing investors. The figures underscore Federal Reserve Chairman Ben S. Bernanke’s comments yesterday that the economy is failing to get a boost from a typical real- estate recovery. “There’s a gradual bleeding into the market of distressed properties,” said Michelle Meyer, a senior U.S. economist at Bank of America Corp. in New York. “It’s a bumpy trajectory” for housing. “It’s going to be a gradual recovery.”

Credit Suisse Cut 3 Levels as Moody’s Downgrades Banks (Source: Bloomberg)
Credit Suisse Group AG (CSGN)’s credit rating was cut three levels and Morgan Stanley (MS)’s was reduced by two as Moody’s Investors Service downgraded 15 banks in moves that may shake up competition among Wall Street’s biggest firms. Credit Suisse was cut to A2, the same as JPMorgan Chase & Co. (JPM) and BNP Paribas SA (BNP), as Moody’s completed a review of global banks with capital-markets operations it announced in February. Morgan Stanley and Zurich-based UBS AG (UBSN), the other firms singled out for three-level reductions, were lowered two steps instead, the ratings firm said yesterday in a statement. “All of the banks affected by today’s actions have significant exposure to the volatility and risk of outsized losses inherent to capital-markets activities,” Moody’s Global Banking Managing Director Greg Bauer said in the statement.
Lower ratings can lead to higher costs for borrowing and collateral. The downgrades leave Citigroup Inc. (C) and Charlotte, North Carolina-based Bank of America Corp. (BAC) as the lowest-rated banks among the 15 at Baa2, two levels above junk. Moody’s kept the long-term ratings of both lenders on negative outlook, which means they may be cut again.

U.S. Firings Stay Elevated and Factories Retrench: Economy (Source: Bloomberg)
More Americans than forecast filed claims for jobless benefits and manufacturing in the Philadelphia region shrank, adding to evidence the U.S. economic expansion is weakening. Applications for unemployment insurance payments fell by 2,000 to 387,000 in the week ended June 16, Labor Department figures showed today in Washington. The median forecast of 45 economists surveyed by Bloomberg News called for 383,000. The Federal Reserve Bank of Philadelphia’s factory index dropped to minus 16.6 in June, the lowest level since August. Stocks and bond yields fell as the data reinforced concerns the recovery is faltering after Fed policy makers yesterday cut their growth forecasts and extended a program to keep long-term interest rates low. Another report today showed sales of existing homes fell in May, indicating that tight credit and the weakest employment gains in a year are holding back residential real estate.
“The labor-market recovery appears to be stalling,” said Millan Mulraine, a senior U.S. strategist at TD Securities in New York. “We are likely to see further moderation in consumer spending, which suggests weakness in manufacturing. This provides confirmation of the Fed’s stance.”

Former Fed Chief Greenspan Says Economy ‘Very Sluggish’ (Source: Bloomberg)
Alan Greenspan, the former Federal Reserve chairman, said today the U.S. economy “looks very sluggish.” Greenspan, in a television interview on Bloomberg Surveillance with Tom Keene, also said he sees “global slack” in the economy. The Fed yesterday extended its Operation Twist program, which will swap $267 billion in short-term securities with longer-term debt through the end of 2012. Fed officials also downgraded their forecasts for growth and employment while noting “significant downside risks” to the economy remain. “It looks very sluggish to me,” Greenspan said when asked about the U.S. expansion. “We have a two-stage economy in this country.”
Referring to his recent writings, Greenspan said a little over 90 percent of the U.S. gross domestic product comes from producing assets with a life expectancy of less than 20 years. That part of the economy is “doing reasonably well.” He said the other approximately 8 percent, mainly the output of structures including single-family residences, is “down 50 percent.”

Bernanke Signals More Easing Likely if Job Growth Wanes (Source: Bloomberg)
Chairman Ben S. Bernanke is signaling the Federal Reserve will probably add to its record stimulus should the economy fail to make sufficient progress in creating jobs for 12.7 million unemployed Americans. The policy-setting Federal Open Market Committee yesterday extended its Operation Twist program and will swap $267 billion in short-term securities with longer-term debt through the end of 2012. Fed officials also downgraded their forecasts for growth and employment while noting “significant downside risks” to the economy. Bernanke, speaking at a Washington press conference, said policy makers are focusing “primarily” on the outlook for jobs in deciding whether to ease further, and more action would be needed without “sustained improvement in the labor market.” Payrolls grew at the slowest pace in a year in May, and the jobless rate has been stuck above 8 percent since February 2009.
“If job growth doesn’t pick up from the recent soft readings in the next few months, then the Fed would likely do more and do a full scale asset-purchase program,” said Dean Maki, chief U.S. economist at Barclays Plc in New York and a former Fed economist. “They’re prepared to take further action.” U.S. stocks slipped after the Fed cut its estimates for growth and Bernanke said progress in the labor market has slowed. The Standard & Poor’s 500 Index fell 0.2 percent to 1,355.69 in New York. The yield on the benchmark 10-year Treasury note rose four basis points, or 0.04 percentage point, to 1.66 percent.

Manufacturing in Philadelphia Region Shrinks at Faster Pace (Source: Bloomberg)
Manufacturing in the Philadelphia region shrank in June at the fastest pace in almost a year, showing the global economic slowdown is holding factories back. The Federal Reserve Bank of Philadelphia’s general economic index fell to minus 16.6 in June, the lowest level since August, from minus 5.8 the previous month. Economists forecast the gauge would improve to zero, the dividing line between growth and contraction, according to the median estimate in a Bloomberg News survey. The report covers eastern Pennsylvania, southern New Jersey and Delaware. Manufacturing may keep ebbing as consumer spending, business investment and exports cool, reflecting the slowdown in global growth caused, in part, by the European fiscal crisis. The Federal Open Market Committee announced yesterday it would extend its efforts to keep long-term interest rates low in an effort to protect the expansion.
“It just reflects the sort of broader slowing we’re seeing,” Peter Newland, a New York-based U.S. economist for Barclays Plc, said before the report.

Index of U.S. Leading Economic Indicators Rises 0.3% (Source: Bloomberg)
The index of U.S. leading economic indicators rose more than forecast in May, propelled by a jump in home-building permits. The Conference Board’s gauge of the outlook for the next three to six months increased 0.3 percent after a 0.1 percent drop in April, the New York-based group said today. Economists projected the gauge would rise by 0.1 percent, according to the median estimate in a Bloomberg News survey. A labor market that’s lost momentum and more cautious spending among businesses are keeping economic growth from gaining speed. The Federal Reserve pledged yesterday to undertake further action to lower interest rates as a means of spurring growth.
“Everything is just growing at a really, really slow pace as decision makers in the U.S. keep a watchful eye on developments in Europe,” Tim Quinlan, an economist at Wells Fargo Securities LLC in Charlotte, North Carolina, said before the report. “When you look at various drivers of our forecast, there’s not one component that’s a major boost or a major drag.”

U.S. Firings Stay Elevated and Factories Retrench: Economy (Source: Bloomberg)
More Americans than forecast filed claims for jobless benefits and manufacturing in the Philadelphia region shrank, adding to evidence the U.S. economic expansion is weakening. Applications for unemployment insurance payments fell by 2,000 to 387,000 in the week ended June 16, Labor Department figures showed today in Washington. The median forecast of 45 economists surveyed by Bloomberg News called for 383,000. The Federal Reserve Bank of Philadelphia’s factory index dropped to minus 16.6 in June, the lowest level since August. Stocks and bond yields fell as the data reinforced concerns the recovery is faltering after Fed policy makers yesterday cut their growth forecasts and extended a program to keep long-term interest rates low. Another report today showed sales of existing homes fell in May, indicating that tight credit and the weakest employment gains in a year are holding back residential real estate.

Americans Hold Dimmest View on Economic Outlook in Five Months (Source: Bloomberg)
The fewest Americans in five months said the economy was improving in June, signaling the slowdown in employment is seeping into consumer psychology. The share of households viewing the economy as heading in the right direction fell to 22 percent this month, the lowest since January, pushing the Bloomberg monthly expectations gauge to minus 11 from minus 1 in May. The weekly Bloomberg Consumer Comfort Index was minus 37.9 in the period ended June 17, down from a four-week high of minus 36.4. “The steady drip of dreary economic data and deteriorating labor market is reshaping public expectations,” said Bloomberg LP senior economist Joseph Brusuelas in New York. The decline “will likely result in slower spending, which in turn will likely have an adverse impact on business confidence.”
Growing pessimism raises the odds that retailers will continue to see demand cool after sales dropped over the past two months. Federal Reserve policy makers yesterday said they will expand a program aimed at reducing long-term interest rates in a bid to spur the world’s largest economy after lowering their outlook for growth and employment.

China Said to Propose Keeping Limit on Local Government Loans (Source: Bloomberg)
China’s banking regulator proposed keeping a cap on local government loans to curtail defaults while encouraging funding for railways, roads and affordable homes, a person with direct knowledge of the matter said. The China Banking Regulatory Commission suggested limiting loans to local government financing vehicles to levels reached at the end of 2011, according to a person with knowledge of the matter who asked not to be named because the proposal is confidential. The watchdog made the recommendation in a report sent to the cabinet after Premier Wen Jiabao’s call last month for the government to focus on growth, the person said. China is introducing stimulus measures to arrest a slowdown in the world’s second-biggest economy while enforcing risk controls. Bad debts rose for a second straight quarter for the first time since 2005 and banks’ earnings growth slowed in the three months to March 31, as steps to curb inflation pushed up funding costs and drove down property prices.
The CBRC’s proposal, which includes about 10 points and was submitted to the State Council, China’s cabinet, at the end of May, encourages banks to boost lending for “key” construction projects, toll roads, agriculture, export financing, consumer credit and small businesses, the person said. The regulator didn’t specify targets, the person said.

Made in China Not Worth Hassle for Small Firms Returning to U.S. (Source: Bloomberg)
When Sonja Zozula and Jerry Anderson founded LightSaver Technologies Inc. in 2009, everyone told them they should make their emergency lights for homeowners in China. After two years of outsourcing to factories there, last winter they shifted production to Carlsbad, California, about 30 miles (48 kilometers) from their home in San Clemente. “It’s probably 30 percent cheaper to manufacture in China,” Anderson says. Besides hassles including shipping, “it’s a question of, ‘How do I value my time at three in the morning when I have to talk to China?’” he says. As costs in China rise and owners consider the challenges of using factories 12,000 miles and 12 time zones away, many small companies have decided manufacturing overseas isn’t worth the trouble.
American production is “increasingly competitive,” says Harry Moser, founder of the Reshoring Initiative, a group of companies and trade associations trying to bring factory jobs back to the U.S. “In the last two years there’s been a dramatic increase” in the amount of work returning. An April poll of 259 American contract manufacturers -- which make goods for other companies -- showed 40 percent of respondents benefited this year from work previously done abroad, Bloomberg Businessweek reports in its June 25 issue. Nearly 80 percent were optimistic about 2012 sales and profits, according to the survey by MFG.com, a website that helps companies find manufacturers.

Canada’s Flaherty Tightens Mortgage Rules to Avert Bubble (Source: Bloomberg)
Canadian Finance Minister Jim Flaherty said he will tighten mortgage terms as the Group of Seven country with the soundest government finances tries to avert a household debt crisis. The government will shorten the maximum amortization period on mortgages the government insures to 25 years from 30 years, and lower the maximum amount homeowners can borrow against the value of their homes to 80 percent from 85 percent, Flaherty said in a statement delivered in Ottawa. Flaherty has been relying on regulatory steps to rein in mortgage borrowing, as concerns about a deepening debt crisis in Europe handicaps Bank of Canada Governor Mark Carney’s ability to raise historically low interest rates at home. The government has already reduced amortization limits twice since 2008, cutting them from 40 years.
“This will further reduce the total interest payments Canadian families make on their mortgages, helping them build up value in their homes more quickly and pay off their mortgage debt sooner,” Flaherty told reporters today in Ottawa. Government measures to reduce amortizations since 2008 will save a typical Canadian family with a C$350,000 ($342,064) mortgage about C$150,000 in debt costs, he said.

Samaras Names Banker to Greek Cabinet as Troika Prepares Return (Source: Bloomberg)
Greek Prime Minister Antonis Samaras appointed Vassilios Rapanos, head of the country’s biggest bank, to lead his finance team as the government prepares for talks with international creditors on relief from austerity measures. Rapanos, chairman of National Bank of Greece SA (ETE), was named as finance minister today after Samaras, the head of the New Democracy party, met with his coalition partners, socialist Pasok chief Evangelos Venizelos and Democratic Left leader Fotis Kouvelis. Demetris Avramopoulos, a former defense and tourism minister and mayor of Athens, was named foreign minister. “This government’s task is to tackle the crisis, open a path to growth and review terms of the loan agreement, without endangering the country’s European course or its place in the euro,” according to a joint statement issued by the three parties. “The goal is to create the conditions that will lead the country out of the crisis, and from the need to depend on loan accords in the future.”
The government, which includes 17 ministers and 21 deputy ministers, will be sworn in later today, to be followed by the first Cabinet meeting. Samaras was sworn in as prime minister yesterday, the country’s fourth premier since November, after New Democracy won a June 17 election with almost 30 percent.

Greece Faces Downgrade to Emerging-Market Status by MSCI (Source: Bloomberg)
Greece’s stock market was put under review for reclassification to emerging markets by MSCI Inc. (MSCI), a change that would make the European Union nation the first advanced country to be cut to developing status. The MSCI Greece Index (MXGR), which includes only two companies, is “structurally no longer in line with Developed Markets size requirements,” MSCI, whose stock indexes are tracked by investors with about $7 trillion in assets, said in a statement yesterday. The index provider said it may discontinue the calculation of the MSCI Greece Index should the stock valuations keep declining.
Greece completed the largest bond restructuring in history in March after holders forgave more than 100 billion euros ($127 billion) of debt. The MSCI Greece Index has lost 93 percent over the past five years as the economy contracted and politicians struggled to keep it within the 17-nation euro-region. Companies on the gauge trade at an average 8 times estimated earnings, a 34 percent discount to companies on the MSCI World Index. (MXWO) “The market has already made up its mind about Greek equities,” Michael Shaoul, the New York-based chairman of Marketfield Asset Management, wrote in an e-mail yesterday. “MSCI is simply bowing to the inevitable. In a sense they really need a new category, blown-up developed markets.”

20120622 1011 Global Commodities Related News.

Top 5 List - Why Managed Futures (Source: CME)
Reduce Portfolio Volatility with Managed Futures
Futures may be used to manage the risk of volatile investments and to capitalize on speculative opportunities associated with that volatility. But the fast-paced and increasingly sophisticated nature of futures markets sometimes renders it difficult for all but the most adept institutional and retail investors to take full advantage of these markets. Thus, many prospective investors have turned to managed futures as a means by which to harness the best professional trading talent in the pursuit of profitable futures trading opportunities. The managed futures industry has flourished from the 1980s through to the present day as a logical outlet for such investment demand. This article describes that growth and discusses our “top 5 list” of reasons why investors should be interested in managed futures investments.

Commodities Enter Bear Market as U.S. Economy Falters (Source: Bloomberg)
Commodities tumbled into a bear market as U.S. reports on manufacturing, jobless claims and home sales signaled a faltering economy after the Federal Reserve refrained from announcing another round of stimulus. The Standard & Poor’s GSCI Spot Index of 24 raw materials fell 2.8 percent to settle at 559 at 3:56 p.m. New York time. The gauge has dropped 22 percent from this year’s highest close of 715.52 on Feb. 24, entering a bear market. Earlier, the measure touched 558.14, the lowest since November 2010. Metals and energy led today’s slump. Manufacturing in the Philadelphia region contracted in June at the fastest pace in almost a year. Existing U.S. home sales fell more than forecast by analysts, and jobless claims topped estimates. Yesterday, the Fed, led by Chairman Ben S. Bernanke, reduced its 2012 forecast for economic growth, and policy makers decided against a third round of debt purchases.
“We got nothing significant from Bernanke, and data continues to paint a horrible picture,” said Steve Mathews, the chief investment officer of Flintlock Capital Asset Management LLC in New York, which manages $105 million of assets. “We have to wait until the next Bernanke event to know if the Fed will indeed do something to perk the economy.” The GSCI index surged 92 percent from the end of December 2008 to June 2011 as the Fed kept borrowing costs at a record low and bought $2.3 trillion of debt in two rounds of so-called quantitative easing.

US budget axe may spare costly crop insurance
WASHINGTON, June 20 (Reuters) - With the U.S. Congress on the brink of passing the most sweeping farm spending cuts in a generation, critics are riled the budget axe will spare billions of dollars in federal subsidies for private companies that reap double-digit returns for insuring crops.
Two years of wrangling over the next farm bill has cut $23 billion over the coming decades from crop subsidies, conservation programs, food stamps and a range of rural economic development programs.

DTN Closing Grain Comments 06/21 15:04 : Grains Close Lower (Source: CME)
Corn futures closed lower on heavy selling from both sides of the market. Spillover pressure proved too much for soybeans to withstand, and they also moved lower. Wheat contracts were lower.

Recap: Grains (Source: CME)
Corn futures extended losses into the close to finish 14 3/4 to 25 1/4 cents lower, with the front-month July contract leading losses. Funds sold 17,000 contracts today. A combination of a "risk-off" atmosphere in the commodity markets and yesterday's rains over areas of the western Corn Belt triggered heavy selling in the corn pit.
Soybean futures softened into the close to finish 8 to 24 1/4 cents lower with new-crop futures leading losses. While the market did see some action in positive territory as traders remain concerned about dryness in the eastern Corn Belt, strong gains in the U.S. dollar index and overnight rains in the western Corn Belt ultimately gave bears the upper hand.
Wheat futures saw two-sided trade, but the market softened into the close. Chicago and Kansas City wheat ended roughly 2 to 6 cents lower. Minneapolis ended with double-digit losses. Wheat futures softened slightly in after-hours trade. Futures were able to run counter to outside markets this morning, but as the dollar rocketed higher and the stock market plummeted on disappointing U.S. economic data and concerns about soaring borrowing costs in Spain, losses in the corn market spilled over to wheat.
Cotton ended sharply to its 500-point limit lower. Much of today's weakness was attributed to strength in the U.S. dollar index. Concerns about an economic slowdown in China raises questions about the country's demand for U.S. cotton. Manufacturing data reflected a slowdown in the Chinese economy, which was traders' focal point today.

Corn Market Recap for 6/21/2012 (Source: CME)
September Corn finished down 18 1/2 at 550 1/4, 20 1/2 off the high and 3/4 up from the low. December Corn closed down 16 1/2 at 550. This was 1 3/4 up from the low and 18 off the high. December corn traded close to a 20 cent range today and was down near 16 1/4 cents heading into the closing bell. September corn lost 15 cents bringing the September vs. December calendar spread near even money. Weak manufacturing data out of China and the lack of any new stimulus program by the Fed triggered broad based commodity liquidation today. December corn saw profit taking and has retraced Wednesday's entire rally. Storm systems moved through parts of Iowa and western Missouri before heading north to Minnesota and Wisconsin this morning. Midday weather maps look unchanged with a chance for showers to finish out this week in the lower Midwest. The southeast and Delta regions will dry down significantly over the next 10 days which should increase stress on the crop. Cash corn basis in the Gulf of Mexico is steady to weaker on sluggish export demand due to high U.S. prices. Export sales released this morning were considered negative with net weekly export sales for corn at 171,400 metric tonnes for the current marketing year and 210,600 for the next marketing year for a total of 382,000. As of June 14, cumulative corn sales stand at 92.4% of the USDA forecast for 2011/2012 marketing year versus a 5 year average of 93.2%. Sales of 282,000 metric tonnes are needed each week to reach the USDA forecast. September Rice finished down 0.16 at 14.585, 0.195 off the high and equal to the low.

In 'Green Wheat' drive, Wal-Mart may transform farming
CHICAGO, June 21 (Reuters) - Wal-Mart Stores Inc  has long used its commercial might to forge a global supply chain with ruthless efficiency. It now has a new target: U.S. wheat fields.
As part of efforts to reduce its carbon footprint and burnish its image as an environmentally responsible company, the huge retailer is sending senior employees into the fields for the first time ever, looking for ways to help farmers reduce their use of carbon-intensive fertilizer or improve logistics.

Wheat Market Recap Report (Source: CME)
September Wheat finished down 5 3/4 at 677 1/4, 22 3/4 off the high and 3 up from the low. December Wheat closed down 8 at 698. This was 3/4 up from the low and 23 off the high. Heading into the closing bell, September wheat was trading near 5 cents lower on the day and 22 cents off its session highs. Chicago wheat traded lower overnight on negative outside markets but bounced midday to register 7 to 9 cent gains. Weak manufacturing data out of China and the lack of any new stimulus program by the Fed triggered broad based commodity liquidation today. Warm and dry weather in the Black Sea region offered underlying support to the wheat complex and the European Union granted export licenses for 143,000 tonnes of soft wheat, taking the 2011/12 season total to 12.4 million tonnes vs. 18.2 million tonnes cleared in 2010/11. November Paris wheat traded 1.75 Euros higher as harvest begins in Spain and will soon kick off in France. Short covering action was noted midday as a result of better than expected export sales released in this morning's export sales report. Net weekly export sales came in at 842,000 metric tonnes which was sharply higher than expected. Cumulative wheat sales stand at 20.4% of the current USDA forecast for 2012/13. The 5 year average sits at 19.9% and 495,000 metric tonnes are needed each week to reach the current USDA forecast. September Oats closed down 1 3/4 at 301. This was 3 1/2 up from the low and 4 off the high.

Crop Traders Bullish for Ninth Week on U.S. Drought (Source: Bloomberg)
Soybean and corn traders are bullish for a ninth week on mounting concern that dry weather will cut U.S. crop yields at a time when hedge funds are adding to wagers on higher prices. Twenty-three analysts surveyed by Bloomberg said they expect soybeans to climb next week and three were bearish. A further four were neutral. Twenty expect gains in corn, four predicted a decline and five were neutral. Speculators raised bets on costlier soybeans for the first time in six weeks and increased net-long positions for corn from the lowest level in almost two years in the week ended June 12, U.S. Commodity Futures Trading Commission data show.
The U.S. Department of Agriculture cut its estimate for corn and soybean conditions on June 18 after dry weather in the Midwest, prompting the biggest two-day rally for corn since October 2010 and soybeans since October 2011. Areas of Iowa and Illinois, the two largest U.S. growers of both crops, have had less than half the normal amount of rain in the past 30 days, National Weather Service data show. The USDA expects China to import record amounts of both crops next season. “The current dryness in the U.S. Midwest will further reduce the crop yields and crop conditions,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt. “Because of the earlier planting and speedy crop progress, the need for moisture is quite high.”

Prices drop on Fed disappointment; weather woes check losses
SYDNEY, June 21 (Reuters) - U.S. corn fell as investors took profits after stellar gains earlier in the week, while disappointment that the U.S. Federal Reserve did not introduce more aggressive stimulus measures to boost the economy also dragged down grains prices.
"We are seeing a risk-off day," said Luke Mathews, commodities strategist for the Commonwealth Bank of Australia. "The crude oil market is extending its very sharp losses from yesterday on the back of negative sentiment flowing around the market, and that influence is flowing through into grains."

China to end anti-dumping probe on US distillers' grains
BEIJING, June 21 (Reuters) - China will immediately end an anti-dumping probe on imports of U.S. distillers' dried grains, opening the gates for more purchases of the feed ingredient from the United States, the Asian giant's commerce ministry said on Thursday.
Feed mills in China, the world's top meat consumer, substitute distillers' dried grains for corn and sometimes soymeal.

India's monsoon rains low for third straight week- sources
NEW DELHI , June 21 (Reuters) - India's crucial monsoon rains were likely to have been 5 percent below average in the week to June 20, sources at the weather office said on Thursday, a third week of scant rain and raising concerns about overall rainfall in the four-month season.
The June-September monsoon rains are important for farm output and economic growth as about 55 percent of the south Asian nation's arable land is rain-fed, and the farm sector accounts for about 15 percent of a nearly $2-trillion economy, Asia's third-biggest.

POLL-S.Africa maize output f'cast seen at 11.05 mln T
JOHANNESBURG, June 21 (Reuters) - South African traders have slightly cut their maize output estimate for 2012 to 11.05 million tonnes from a 11.1 million tonnes forecast last month, a Reuters survey showed on Thursday.
The latest average traders' forecast is in line with the government's Crop Estimates Committee's (CEC) estimate of 11.056 million tonnes released in May.

Argentina deploys military police in fuel strike
BUENOS AIRES, June 20 (Reuters) - Argentina's government sent military police to take control of fuel plants and get trucks back on the road on Wednesday, the first day of a truckers' pay strike that could cause widespread shortages in Latin America's third-biggest economy.
The powerful truck drivers union defied a government order for talks and launched the three-day protest, disrupting fuel distribution throughout the country, a leading exporter of grains.

Nigerian millers see more demand for U.S. wheat
KANSAS CITY, June 20 (Reuters) - Nigerian flour millers, key buyers of U.S. wheat, continue to need more U.S. supplies despite efforts by the Nigerian government to reduce reliance on foreign wheat imports, top Nigerian milling executives said on Wednesday.
"We are not expecting a drop in the amount of U.S. wheat we need. In all, the wheat we are needing should be increasing," said Benson Osaretin Evbuomwan, director of Honeywell Flour Mills, which has an annual milling capacity of 600,000 tonnes.

India can export 2-3 mln T of wheat to Iran
NEW DELHI, June 20 (Reuters) - India could export up to 3 million tonnes of wheat to Iran if supplies are requested, Food Minister K.V. Thomas said on Wednesday, as India seeks to reduce huge wheat stocks and help settle payment for a large oil import bill.  
An Iranian delegation last week explored the possibility of buying wheat from India, which has huge stocks and wants to fix a trade imbalance with the oil exporter.

ICE coffee, sugar dip as commodities retreat
LONDON, June 21 (Reuters) - Arabica coffee, raw sugar and cocoa futures on ICE were lower in early trade, weighed by a stronger dollar and broad-based weakness in commodity markets.
"New York Sept coffee  is expected to hover in a range of $1.5010-$1.5445 per lb as a rebound from the June 18 low of $1.5010 has not completed, according to Reuters market analyst Wang Tao."

Brazil mid crop cocoa harvest still accelerating
SAO PAULO, June 20 (Reuters) - Brazil's main cocoa state Bahia looks near to peak flow in the mid crop harvest, with deliveries to warehouses of 102,434 60-kg bags (6,146 tonnes) in the last week, a third more than the same week last year, Bahia Commercial Association data showed.
Combined deliveries from smaller cocoa-growing states reached their highest ever for any single week and were expected to quicken further, Bahia-based cocoa analyst Thomas Hartmann said in a weekly crop bulletin.

China May crude imports from Iran down 2.3 pct y/y
BEIJING, June 21 (Reuters) - China's imports of crude oil from Iran in May fell 2.3 percent from a year earlier to 521,936 barrels per day (bpd), customs data showed on Thursday, with Beijing boosting shipments from other oil suppliers to help fill the gap.
In January-May, China's crude imports from Iran totalled 389,857 bpd, down 25 percent from a year earlier largely because of a contract dispute that saw refiner China Petroleum & Chemical Corp (Sinopec)  slash imports in the first quarter by about half to 285,000 bpd.

Petronas awards 3 North Malay Basin gas fields to Hess Corp
KUALA LUMPUR, June 21 (Reuters) - State oil firm Petronas signed three production sharing contracts with the exploration arm of U.S. firm Hess Corp  on Thursday, kicking off a $5.2 billion gas project off Malaysia's east coast.
The North Malay Basin project, comprising nine gas fields about 300 km (186 miles) off the east coast of peninsular Malaysia, is aimed at securing new gas supplies for Petronas as it faces a supply crunch.
Petronas awarded production sharing contracts (PSC) for three fields to Hess Corp and its own exploration arm, Petronas Carigali. One was an amended PSC, while the others were new exploration PSCs with a 50:50 equity split between the two firms, the company said.

OIL-Oil falls to 18-month low on global growth worries
LONDON, June 21 (Reuters) - Brent crude oil hit an 18-month low of $91 per barrel  as the outlook for economic growth darkened, pointing to lower-than-expected energy consumption worldwide.
"It is a toxic combination of negative factors," said Eugen Weinberg, head of commodities research at Commerzbank.

Oil Rebounds From Biggest Slump of 2012 as Storms Build (Source: Bloomberg)
Oil rebounded from its biggest decline this year in New York, trimming a second weekly drop after a storm started to form in the Gulf of Mexico and prices approached a technical support level. Futures gained as much as 0.5 percent after sliding 4 percent yesterday, the most since December. A swath of rain and thunderstorms across the Caribbean from Mexico to southern Florida has a 70 percent chance of becoming a tropical storm in 48 hours, according to the National Hurricane Center in Miami. West Texas Intermediate crude rose after falling to near its lower Bollinger Band. Oil for August delivery increased as much as 41 cents to $78.61 a barrel in electronic trading on the New York Mercantile Exchange, and was at $78.53 at 11:09 a.m. Sydney time. The contract yesterday tumbled $3.25 to $78.20, the lowest close since Oct. 4. Prices are down 6.5 percent this week and 21 percent lower this year.
Brent oil for August settlement rose 39 cents, or 0.4 percent, to $89.62 a barrel on the London-based ICE Futures Europe exchange. The European benchmark’s premium to West Texas Intermediate was at $11.09 after closing at $11.03 yesterday, the narrowest gap since January. West Texas Intermediate crude has technical support along its lower Bollinger Band on the 30-day chart, data compiled by Bloomberg show. Futures yesterday halted their decline near the indicator, which is at about $77.37 a barrel today. Buy orders tend to be clustered near chart-support levels.

20120622 1010 Soy Oil & Palm Oil Related News.

Soybean Recap (Source: CME)
Soybean futures softened into the close to finish 8 to 24 1/4 cents lower with new-crop futures leading losses. While the market did see some action in positive territory as traders remain concerned about dryness in the eastern Corn Belt, strong gains in the U.S. dollar index and overnight rains in the western Corn Belt ultimately gave bears the upper hand.

Soybean Complex Market Recap (Source: CME)
August Soybeans finished down 14 at 1423, 20 1/4 off the high and 1 1/2 up from the low. November Soybeans closed down 24 1/4 at 1371 1/4. This was 1/4 up from the low and 23 off the high. August Soymeal closed down 1.5 at 422.6. This was 1.9 up from the low and 8.6 off the high. August Soybean Oil finished down 0.9 at 50.1, 0.82 off the high and 0.17 up from the low. Soybeans were trading sharply lower on the day late in the session with July soybeans down 5 cents while November were down 22. November soybeans failed to move above yesterday's highs which likely triggered profit taking after moving 75 cents higher since Monday. Into the closing bell, a bearish tilt to gold, the dollar and energy markets plus more rain concerns helped to spark a sharp break in November soybeans. December soybean meal traded 3.50 dollars lower while December soybean oil was down 95 late in the day. Export sales released this morning were considered negative with net weekly export sales at 163,800 metric tonnes for the current marketing year and 444,200 for the next marketing year for a total of 608,000. As of June 14th, cumulative soybean sales stand at 101.7% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 98.9%. Total net meal sales came in at 282,000 metric tonnes while total net oil sales came in at 20,400 metric tonnes.

VEGOILS-Palm oil falls as Fed action disappoints
SINGAPORE, June 21 (Reuters) - Malaysian crude palm oil futures edged lower, as traders booked profits from rallies earlier in the week and sentiment turned cautious after the Federal Reserve's stimulus measures proved less aggressive than expected.
"The Greek election brought in some funds buying," said a trader with a domestic commodities brokerage in Malaysia. "However the surge also brought in demand destruction and palm olein prices above $990 saw very few takers. A close above 3,000 ringgit is needed today, failing which prices may succumb to fresh selling."


The Roundtable on Sustainable Palm Oil (RSPO) foresees the global annual production for certified sustainable palm oil (CSPO) to increase. "The production capacity of CSPO reached over 6.4m tonnes in June from about 6m in April this year. We estimate it to reach over 7m by year-end," said RSPO secretary-general Darrel Webber. (Bernama)

The Roundtable on Sustainable Palm Oil (RSPO) grouping is putting in place a mechanism to channel a portion of its revenue towards the certification of oil palm estates owned by independent smallholders in key markets such as Indonesia, Thailand and West Africa. The RSPO had also set aside 300,000 euros to encourage smallholders to certify their plantations, said RSPO secretary-general Darrel Webber. “This is to equip independent smallholders with better access to the international buyers in markets like Europe, the United States and even India, which are increasingly demanding for CSPO (certified sustainable palm oil) instead of the non-certified ones,” he said at a briefing yesterday. The first batch involving about 5,000ha of oil palm estates belonging to independent smallholders from Thailand would undergo the certification process this year, said Webber. (Starbiz)