Tuesday, July 3, 2012

20120703 1805 FCPO EOD Daily Chart Study.

FCPO closed : 3124, changed : +36 points, volume : higher.
Bollinger band reading : upside biased with possible pullback correction.
MACD Histogram : rising, buyer in control.
Support : 3100, 3070, 3050, 3020, 2970 level.
Resistance : 3150, 3200, 3250, 3270 level.
Comment :
FCPO closed firmer with encouraging volume distributed. Soy oil price currently trading higher after overnight closed marginally lower while crude oil price currently trading higher after yesterday pullback.
Persisting dry weather across America pressure soybean, soyoil and crude palm oil to trade higher despite news on India cancelling tender to buy from the range of 3,000 to 6,000 tonnes of crude palm oil.
Daily chart analysis revised slightly to suggesting an upside biased market development with possible pullback correction.
When to buy : buy at support or weakness with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20120703 1731 FKLI EOD Daily Chart Study.

FKLI closed : 1612.5 changed : +8.5 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histogram : turned upward, buyer still in control.
Support : 1610, 1600, 1590, 1580 level.
Resistance : 1620, 1630, 1640, 1650 level.
Comment :
FKLI closed recorded gain with slightly higher volume transacted doing 4.5 points premium compare to cash market that closed firmer. Overnight U.S. markets closed mixed and today Asia markets ended firmer while European markets currently trading higher.
Global markets edge upwards on hope that central banks across the world will start to implement easing monetary policy to stimulate economy growth as quarter to kick starts.
Technical chart chart reading adjusted to recommending an upside biased market development testing previous high resistance level near 1615.5 level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

20120703 1718 Regional Markets EOD Daily Chart Study.

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

20120703 1628 Reuters Global Commodities Technical Analysis 2012 3rd Quarter Outlook.

Dear All, 
Here is the latest Reuters Global Commodities Technical Analysis 2012 3rd Quarter Outlook by Wang Tao! Here's the link :  Reuters Global Commodities Technical Analysis 2012 3rd Quarter Outlook. Enjoy !

20120703 1547 Local & Global Economy Related News.

The free trade agreement (FTA) signed between India and Malaysia in July 2011 has propelled bilateral trade to a "historic record level" in 2011, said Malaysian trade commissioner, Noraslan Hadi Abdul Kadir. Noraslan said two-way trade in 2011 surged by 32.7% to RM38.36bn from RM28.91bn previously. This is an all-time record level in trade with India, surpassing the previous best of RM35bn in 2008, he said. For the past 10 years, India-Malaysia trade has recorded a 15.6% average total trade growth rate, he noted. (BT)

Malaysia's information and communications technology (ICT) industry is projected to remain bullish for 2H12, said Multimedia Development Corporation (MDeC). Its CEO Datuk Badlisham Ghazali said the growth forecast for the sector of 8-10% for 2012 by the National ICT Association of Malaysia (PIKOM) lent support to the outlook. (BT)

The Northern Corridor Implementation Authority (NCIA) plans to establish 100 entrepreneurs in the Northern Corridor Economic Region (NCER) who will be trained as high technology agropeneurs to produce agriculture products of high value and yield. Its chief executive Datuk Redza Rafiq said the plan will be jointly carried out by JPB Asia Pasifik Sdn Bhd and its partners, MRT Japan Co Ltd, which is a supplier of vegetables and fruit to Japan, Singapore, Thailand, China and the US. JPB and MRT Japan will invest another RM105m, he said. (Financial Daily)

The country cannot rely on fuel subsidy-driven consumption to prop up the economy in the long run, said PM Datuk Seri Najib Tun Razak. He acknowledged that Malaysia has one of the lowest pump prices in Southeast Asia - second only to Brunei Darussalam - but pointed out that the country needed to reposition its oil-based revenue towards economic development. (The Star)

The World Bank is in a strong financial position to meet loan demand from emerging markets if the global economy deteriorates, said World Bank President Jim Yong Kim, who assured that the bank was “monitoring the situation very carefully.” (Bloomberg)

US construction spending rose 0.9% mom in May (a revised 0.6% in Apr), overshooting consensus of 0.2%, whilst on a yoy basis, the measure gained 7.0% (a revised 8.9% in Apr). (Bloomberg)

The US ISM manufacturing index fell to 49.7 in Jun (53.5 in May), undershooting consensus of 52.0 and is the first contraction since Jul 2009. (Bloomberg)

US Markit manufacturing PMI fell to 52.5 in Jun (54.0 in May), lower than the flash estimate of 52.9. (Bloomberg)

The US is likely to face increased pressure from other donor nations in the coming months to allow greater assistance to Myanmar, according to Stephen Groff, a vice president with the Asian Development Bank, although the Treasury Department remains bound by law to block the ADB and World Bank from providing most aid to Myanmar even after President Barack Obama’s administration eased sanctions in May. (Bloomberg)

Eurozone’s Markit manufacturing PMI came in at 45.1 in Jun in the final reading (44.8 in the initial reading), unchanged from a nearly three-year low in May and is below 50.0 for the 11th straight month. (Bloomberg)

Eurozone unemployment rose to 11.1% in May (11.0% in Apr), the highest since the data series started in 1995 as a deepening economic slump and budget cuts prompted job cuts. A whopping 17.561m people were unemployed in May, up 88,000 from the previous month. (Bloomberg)

China’s HSBC-Markit Economics manufacturing PMI fell to 48.2 in Jun (48.4 in May), a seven-month low as overseas orders dropped. (Bloomberg)

China’s home prices increased 0.1% mom in Jun to Rmb8,688 psm (US$1,369) after nine straight months of decline, according to a SouFun survey of 100 cities. (Bloomberg)

China’s leading index was unchanged at 99.9 in May. (Bloomberg)

Japanese sales of cars, buses and trucks totaled 317,152 vehicles in Jun, up from 225,024 vehicles a year earlier, marking the 10th straight month of gains, the Japan Automobile Dealers Association said. (WSJ)

Sentiment among large Japanese manufacturers improved in the quarter ended Jun to -1 from -4, the Bank of Japan said Monday, although confidence remained weak amid a lumbering economic recovery. (AFP)

South Korea lowered its export growth forecast for 2012 to 3.5% from 6.7%. (Bloomberg)

India’s HSBC-Markit manufacturing PMI rose to 55.0 in Jun (54.8 in May), helped by new order inflows. (WSJ)

Singapore’s private residential property price index rose 0.4% qoq record 206.8 points in the three months ended 30 Jun. (Bloomberg)

Resale HDB flat prices in Singapore have inched upwards yet again, this time by 1.3% qoq in 2Q12 (0.6% in 1Q12). (Channel News Asia)

Thailand’s consumer confidence index rose slightly in Jun but the future sentiment index dropped following the public’s lack of confidence in the economy. The overall consumer confidence index stood at 27.6 in Jun, from 27.4 in May, whereas the future sentiment index is 32.1, lower than the previous score of 33.4. The index on future income in the next three months is 46.3, dropping from 51.2. (Thai Financial Post)

Thailand’s auto exports to Europe fell more than 29% in the Jan-Apr 2012 period, according to the Federation of Thai Industries. (Thai Financial Post)

Thailand’s consumer prices were up 2.56% yoy in Jun (2.53% in May) as the prices of food and energy remained weak, according to the Commerce Ministry. The ministry now estimates that inflation this year will come in at about 3.5%, still falling within the projected range of 3.2% to 3.8%, as the global economy slows and energy prices fall. (Bangkok Post)

Indonesia’s inflation rose to 4.53% yoy in Jun (4.45% in May), spurred by higher basic food prices, including red chillies. On a mom basis, the measure gained 0.62% (0.07% in May). Core inflation stood at 4.15% (4.14% in May). (AFP)

In Indonesia, exports in May fell 8.5% yoy, after declining a revised 2.3% in Apr. Imports rose 16.1% in the same period from 13.8% in May. The trade deficit in May was US$486m versus US$765m the previous month. (Bloomberg)

HSBC's manufacturing PMI for Indonesia rose to 50.2 in Jun from 48.1 in May, supported by domestic demand. (Dow Jones)

Bank Indonesia Governor Darmin Nasution said the central bank would possibly rule on bank ownership regulations in mid-Jul. A deputy bank governor had earlier told reporters the rules could be issued in late Jun. (Reuters)

The number of foreign tourists coming to Indonesia in May rose 8.45% yoy, faster than April's 2.96%. (Reuters)

The HSBC manufacturing PMI for Vietnam declined to 46.6 in Jun from 48.3 in May. (Bloomberg)

Despite a decrease of 0.6% in Jun, Vietnam’s retail sales value of goods and services in 1H12 surged 6.5% yoy to VND1,137tr (US$54.2bn), lower than the 7-10% recorded in the same period in recent years, according to the General Statistics Office (GSO). (Vietnam News)

20120703 1547 Malaysia Corporate Related News.

After the setback in Genting Malaysia's venture in Miami, the company has bounced back with a new casino development in the Bahamas worth US$24m (RM74m). It was reported that the company had entered into a JV agreement with RAV Bahamas to open Resort World Bimini Bay, a luxury boutique casino on Bimini Island. The 10,000 sft casino is set to be open in December at the Bimini Bay Resort and Marina, in north Bimini Island. The casino will feature full-scaled table games, slots and sports betting in a venue similar to Genting's casinos in London. (Starbiz)

Axiata is strengthening its leadership team with the appointment of Mohd Khairil Abdullah as the group chief marketing and operations officer, effective July 11. The company said on Monday Khairil would be responsible for group marketing, branding and performance management as well as leading and co-ordinating group synergies and operational improvements. (StarBiz)

Sidek appointed new Petronas chairman
The former chief secretary to the Government, Tan Sri Mohd Sidek Hassan, has been appointed chairman of Petroliam Nasional (Petronas) effective 1 July. The national oil company's board of directors had approved the appointment on 27 June, it said in a statement. Petronas pointed out that this appointment would restore clear demarcation of roles between chairman and president and chief executive officer. This would be a further reflection of the company's commitment to uphold global standards of good governance. The board has also approved the appointment of Juniwait Rahmat Hussin as vice president and venture director of Pengerang Integrated Complex to lead all proposed Petronas developments in Pengerang, Johor. (StarBiz)

Petronas Dagangan (PDB) expects to rake in RM20m from its partnership with payment service provider e-pay this year. Already entering its 11th year of partnership, PDB said e-pay’s electronic payment services have been bringing in good income since year one. Petronas has 977 stations nationwide, and more than 800 stations are being serviced by e-pay terminals. The e-pay services that can be obtained at Petronas stations include mobile reloads, online games top ups, event tickets and bill payments. (BT)

Petronas’ business profile will benefit from the acquisition of Canada's Progress Energy, says Fitch Ratings. It said on Monday the acquisition for C$5.5bil (RM17.12bn) will enable Petronas to benefit from an increase in geographical diversification across natural gas assets in Canada. "Progress Energy is reported to have 1.9tr cu ft equivalent of proved and probable gas reserves. Petronas will seek to monetise these reserves through export of LNG to the higher-priced Asian markets," it said. (Star)

The world-renowned Harrods department store has set its eyes on Malaysia as the site of a Harrods Hotel. An invite sent to the media said Qatar Holding LLC would be signing a memorandum of understanding with Jerantas Sdn Bhd today to explore Malaysia, specifically Bukit Bintang, as the ideal site for the next Harrods Hotel development. According to sources, Qatar Holdings will be working with Tradewinds Corp Bhd (TCB) on the venture. TCB holds the franchise for the Harrods retail stores in Malaysia and had indicated as early as 2008 in its annual report that it could collaborate with Harrods in future residential, commercial and hotel projects, especially in Kuala Lumpur. According to a source, there is also a possibility of Harrods Residences opening together with the Harrods Hotel. “The Harrods Residences will be sold at a higher price than The Banyan Tree Residences,” the source said. In September last year, the then Kuala Lumpur mayor Tan Sri Ahmad Fuad Ismail revealed that a consortium of three developers was proposing to build the Harrods Hotel. Apart from Qatar Holding and TCB, sources identified the third interested party as Datuk Desmond Lim. Qatar Holding and Lim both are the major unitholders of the Pavilion Real Estate Investment Trusts. Ahmad Fuad had at the time identified a piece of land in Jalan Conlay near Restaurant Seri Melayu as a suitable site for the hotel. The restaurant, which is owned by Amcorp Group Bhd, sits on land that is leased from Lembaga Kraftangan Malaysia. Lembaga Kraftangan comes under the Information, Communications and Culture Ministry and acts as the custodian for the Federal Lands Commissioner. It is understood that the government had put out a tender for the sale of the said land. It also understood that Lim owns the lease on the strip of land where the Chulan Square restaurants are located. The signing of the MoU, to be held at the Pavilion Mall, here, will be attended by Qatar Holding vice-chairman Dr Hussain Ali Al-Abdulla and Jerantas corporate representative Tan Sri Abdul Aziz Ismail. (BT)

The Selangor State Development Corp (PKNS) is taking the longer route to set up a real estate investment trust (REIT) to unlock the value of its prime assets. The state-owned entity has to balance its social obligations with profit motives. PKNS tried to inject 3 properties into AmanahRaya REIT in exchange for RM270m cash and 30% equity but the deal collapsed last December after 15 months of deliberations. The proposal met with strong opposition from those who feared the move could jeopardize the bumiputera agenda in which PKNS buildings offer subsidized rents to bumiputera entrepreneurs. In the interim, PKNS has established a private real estate company (PREC) to incubate some of its existing properties in Klang Valley, which have a combined value of RM900m. (Financial Daily)

State governments should impose quotas for affordable housing on property developers, said Minister of Housing and Local Government Datuk Seri Chor Chee Heung. Quoting statistics from a recent Household Income Survey by the Economic planning Unit, Chor said 76% of Malaysians earn below RM5,000 per month. "Based on a credit line at 30% of net income for housing loan and the current base lending rate of 6.6%, the maximum price of houses that this group can afford, below RM5,000 per month, is below RM300,000. As such, affordable housing in Malaysia can be defined as houses priced below RM300,000," he said. "Instead of purely low-cost housing quotas, state governments can apportion a certain percentage for developers and impose a quota on affordable housing, perhaps, not more than RM300,000 per house. This will make property developers happy because they won't have to subsidise so much in their imposition of quotas for low-cost housing," he said (Financial Daily)

AirAsia may consider exiting long-haul, low-cost AirAsia X when the latter undertakes its IPO, which could be as early as fourth quarter this year, according to CEO Aireen Omar. “We won’t increase the stake for sure, if anything we will remain at 20%. If they go for an IPO, we may consider exiting it. We do have a service agreement with AirAsia X, which should be quite sufficient to derive economic benefit from them,” said Aireen. Aireen said AirAsia was aiming for revenue growth of at least 10% for the current financial year. The load factor has been maintained at 80%. The oil price has been coming down, and AirAsia has the oil price hedged below its budget level. Next year, AirAsia is scheduled to receive another four aircraft. (Financial Daily)

Malaysia Airlines CFO Rozman Omar will leave the airline on Aug 1 after less than six months there. Previously AirAsia’s regional head of finance, he joined MAS on Feb 14. It was reported that he was likely to return to the AirAsia group. (Star Biz)

Firefly is targeting foreign tourists for its two new routes, Kota Baru – Singapore and Penang – Koh Samui beginning Aug 10 and 11. The airline expects tourists from the Middle East, Japan, South Korea and India, who largely choose Penang as their preferred holiday destination during the holiday seasons to use the flights. The airline will also restart its Subang – Hat Yai route on Aug 17. (Bernama)

MAS: Plans to use Airbus 380 for Tokyo, Beijing routes
Malaysia Airlines (MAS) plans to fly the superjumbo Airbus A380 to Tokyo's Narita International Airport and Beijing after its maiden A380 flight to London. The airline's second destination for the A380 will be Sydney, Australia, towards the end of November. The airline has ordered 6 A380 aircraft, four of which will be delivered by the end of 2012 and the balance in 2013. (StarBiz)

MMC Corp Bhd plans to pare down borrowings and subsequently reduce interest cost by half, enabling the group to deliver better value to shareholders. The reduction in borrowings will be via a combination of refinancing, proceeds from the unlocking of group assets and other debt/equity capital market transactions, says Group MD Datuk Hasni Harun. MMC’s interest cost is RM180m per annum and total borrowings as at Apr-2012 stood at RM21.8bn. This is at 2.4x net gearing. Hasni said most of the borrowings were contained at the subsidiary level (such as at Malakoff Corp Bhd), where about 80% of the total borrowings involved project financing and structured as ring-fenced. Malakoff’s debts were serviced by cashflow received by concession-based assets, said Hasni.(BT)

IHH Healthcare has set a retail price of RM2.85 for its IPO as the company aims to go public on July 25. The company is also set for a dual-listing with the Singapore Stock Exchange and the retail price of the IPO is S$1.18 (RM2.95). The IPO is for 2.2bn shares, comprising 1.8bn new shares and an offer for sale of up to 434.65m shares. The company already has 22 cornerstone investors who have committed to buy 62% of the offering. (Financial Daily)

Tradewinds and Qatari explore Harrods Hotel venture in Kuala Lumpur
Tradewinds Corp's unit Jerantas SB and Qatar Holding LLC are in discussions to develop a Harrods Hotel in Kuala Lumpur. In a media invite yesterday, both companies will sign a memorandum of understanding to consider setting up a hotel, specifically in Bukit Bintang, Kuala Lumpur. Tradewinds has a 34% stake in Jerantas. Qatar Holding is a global investment house established in 2006 by the Qatar Investment Authority (QIA) and invests internationally and locally in strategic private and public equity as well as other direct investments. It has been reported that QIA has interests in the Pavilion Kuala Lumpur on Jalan Bukit Bintang. (Malaysian Reserve)

CIMB Group: Completes acquisition of RBS China, HK businesses
CIMB Group Holdings has completed the acquisition of selected cash equities, equity capital markets and M&A corporate finance businesses of The Royal Bank of Scotland in China and Hong Kong. The banking group said on Monday the acquisition was completed on completed last Saturday. CIMB agreed in April to pay £88.4m (RM440m) to Edinburgh-based RBS for most of its Asia-Pacific operations and inject a further £85.5m into the business. The acquisition has helped CIMB extend its international reach after being Malaysia's top underwriter for equity and rights offerings in the past 3 years. (StarBiz)

Mah Sing Group: Upbeat on Penang projects
Mah Sing Group’s projects in Penang is expected to generate about RM325m or 13% of the projected RM2.5bn sales for 2012, compared with RM70m or 3% of the RM2.2bn sales for 2011. Group COO Teh Heng Chong said the key contributors from Penang included the Southbay Plaza and Legenda@Southbay. Mah Sing’s “Realising Dreams Property Showcase” showcased 11 projects that it is currently undertaking nationwide. The Legenda@Southbay has generated about RM40m since January, while the Southbay Plaza has generated RM80m since May. (StarBiz)

Zelan: Sees possible tax penalty in Indonesia
Zelan is looking at paying RM25.1m in back taxes in Indonesia. This comprises potential tax payable and related tax penalties for its wholly-owned subsidiary in Indonesia, Zelan Holdings (M) Sdn Bhd (Zelan Indonesia). Zelan Indonesia filed for a review of the assessment in the Tax Court, which was completed in November 2011. The final verdict was delivered verbally to Zelan Indonesia on June 29. Zelan is planning to file for a judicial review in the Supreme Court of Indonesia on the advice of its tax agent Messrs Ernst & Young. Meanwhile, Zelan said the potential exposure of approximately RM25.1m continues to be reflected as a contingent liability in the company’s financial statements. (Financial Daily)

Automotive: China Automobile Parts seeks Bursa listing
China Automobile Parts Holdings Ltd (CAP) is seeking to list on Bursa Malaysia’s Main Market despite the current soft market sentiment and the general poor performance of China-based companies here. According to its prospectus, CAP’s IPO will involve 150m shares, comprising a public issue of 90m shares to selected investors and the public and an offer to sale of 60m shares to selected investors. (Financial Daily)

20120703 1532 Global Market & Commodities Related News.

Asian shares rose while Europe looked set to open higher on Tuesday as a recent raft of weak U.S. and European macro data raised investors' expectation that central banks will soon take fresh policy action to kick-start their economies. U.S. stocks edged higher on Monday, shaking off a surprise contraction in U.S. manufacturing, which some investors interpreted as a signal the Federal Reserve will take more forceful actions to boost the economy.

GLOBAL MARKETS-Shares inch up as weak factory data boost Fed hopes
TOKYO, July 3 (Reuters) - Asian shares inched up as manufacturing data around the world highlighted the drag on growth from the protracted euro zone debt crisis, raising expectations for the Federal Reserve to take further steps to underpin the fragile economy.
"The pressure to do something will grow on the Fed. For now, the market is digesting the hit, but hopes of a sustained rally may be too early with some of the negative news regarding the global business cycle yet to be priced in," said Sebastian Galy, strategist at Societe General.

The euro and U.S. dollar climbed off early lows but remained under pressure after dismal factory data from Europe to the United States raised expectations for more action from central banks in both regions.

FOREX-Euro, USD slip on weak U.S. data; Aussie awaits RBA
TOKYO, July 3 (Reuters) - The euro and U.S. dollar slipped on Tuesday after dismal data from Europe to the United States raised expectations for more action from central banks in both regions.    
Investor hopes for the European Union's plan to support debt-laden countries turned to scepticism, which was further fanned by Monday's report showing U.S. manufacturing contracted for the first time in nearly three years.

VEGOILS-Palm hits 1-mth top on US weather woes, Ramadan demand

SINGAPORE, July 2 (Reuters) - Malaysian crude palm oil futures rose to a one-month high driven by a stronger demand outlook for palm oil as a  worsening U.S. drought could further tighten global oilseed supplies.  
"Palm oil is up in line with the higher external markets on Friday thanks to the European summit. The persistent hot and dry weather in the U.S. also pushed prices up," said a trader with a foreign commodities brokerage in Malaysia.

Coffee exports from Honduras, Costa Rica rise in June
Coffee exports from Honduras, Central America's top producer, nearly doubled in June compared with the same month a year ago, reaching 788,129 60-kg bags for the month.

USDA slashes US corn, soybean condition ratings
Extreme hot and dry weather has taken a toll on the U.S. corn and soybean crops with the U.S. Department of Agriculture (USDA) on Monday slashing its condition rating for U.S. corn to 48 percent good-to-excellent, down 8 percentage points from a week earlier.

Ivorian rains boost 2012/13 main crop, sun needed
More sun is needed to strengthen the development of Ivory Coast's 2012/13 main cocoa crop, which was helped by abundant rainfall last week in most regions, farmers and analysts said on Monday.  

IGC cuts 2012/13 wheat crop outlook, raises maize
The International Grains Council on Monday cut its forecast for global wheat production in 2012/13 as the outlook for the crop in key exporter Russia deteriorated.

Ukraine boosts grain exports 83 pct in 11/12
Ukraine, which harvested a record 56.7 million tonnes of grain in 2011, raised its exports to 22.5 million tonnes in the 2011/12 July-June season from 12.3 million tonnes in 2010/11, Ukrainian Agrarian Confederation grain lobby said on Monday.

India's 2012/13 sugar output seen at 25 mln T-industry
India may produce 25 million tonnes of sugar in the next marketing year starting Oct. 1, the main producers' body said on Monday, down by 1 million tonnes from the likely output in the year to September.

COMMODITIES-Oil, metals down on cautious Q3 start; grains surge
NEW YORK, July 2 (Reuters) - Commodities began the third quarter on a mixed note on Monday, with energy and metals prices closing down on economic concerns while agricultural markets extended their rally on worries about U.S. crop weather.
"After all the excitement on Friday, and the improvement in technicals, we are still rangebound and are still in the same broad range that we've been in since the beginning of May," said Stanley Dash, a technical analyst at TradeStation who watches  the gold market.

Chicago corn rose to a 10-month top, stretching gains into a third straight session, while soybeans surged to their highest in almost four years as a U.S. report cut crop condition ratings in a fresh blow to world corn and soy supplies.

US corn jumps to 9-1/2 month top, soy hits contract high
SYDNEY/SINGAPORE, July 2 (Reuters) - Chicago new-crop corn jumped more than 3 percent to its highest since early September, with a worsening U.S. drought hurting the crop in its crucial pollination phase, while soybeans hit a contract high.
"Hot, dry weather across the U.S. and the declining yield potential is driving the increase in corn today," said Luke Mathews, a commodities strategist at the Commonwealth Bank of Australia. "Wheat is being dragged along by the strength in corn, like soybeans too."

Little wetter for northwest Midwest next week
CHICAGO, June 29 (Reuters) - Midday weather updates indicate a little more rain for next week in the northwest U.S. Midwest crop region than earlier outlooks indicated but forecasts for the following week were drier than previous forecasts, an agricultural meteorologist said on Friday.
"Midday updates showed a little wetter in the six- to 10-day for northwest areas such as Iowa and southern Minnesota but the 11- to 15-day was notably drier but also cooler (11-15 day)," said Steve Silver, meteorologist for MDA EarthSat Weather.

Ukraine 2012 barley harvest seen at 6 mln T
KIEV, July 2 (Reuters) - Ukraine, one of the world's leading barley exporters, is likely to harvest 6 million tonnes of barley this year, down from 9 million in 2011, Mykola Kulbida, the head of state weather forecasting centre, said on Monday.
"The harvest of spring barley is likely to total 5 million tonnes and winter barley gives us an additional one million tonnes," he told reporters.

Indonesia sees 2012 rice output up 4 pct on better weather
JAKARTA, July 2 (Reuters) - Indonesia's unmilled rice production is forecast to rise 4.3 percent this year on improved weather conditions, the statistics bureau said on Monday, slightly ahead of a government estimate in May and potentially helping to curb the need for imports.
Rice production in Southeast Asia's largest economy is seen at 68.59 million tonnes in 2012, versus 65.76 million last year, statistics bureau chief Suryamin said.

ICE sugar rises, coffee at one-month high
LONDON, July 2 (Reuters) - Sugar futures on ICE firmed underpinned by news that speculators had raised their net long position, while coffee touched a one-month high, buoyed by concerns over the impact of rains in Brazil on the crop.
Cocoa futures were little changed, supported by a slow start to the mid crop in West Africa, the world's top cocoa growing region.

Indonesia's June Sumatra coffee bean exports fall 18 pct
BANDAR LAMPUNG, Indonesia, July 2 (Reuters) - Robusta coffee bean exports in June from Indonesia's main growing area in Sumatra slipped 18 percent from a year earlier, government trade data showed on Monday, as wet weather hindered output ahead of the main harvest period next month.
Indonesia shipped 14,718.7 tonnes of robusta in June, versus 17,905.76 tonnes a year earlier, while last month's shipments rose 57 percent from May's export number of 9,355.3 tonnes.

Ivorian cocoa arrivals seen at 1,238,000 T by July 1.
ABIDJAN, July 2 (Reuters) - Cocoa arrivals at ports in top grower Ivory Coast reached around 1,238,000 tonnes by July 1, exporters estimated on Monday, compared with 1,285,716 tonnes in the same period of the previous season.
Exporters estimated around 19,000 tonnes of beans were delivered to the West African state's two ports of Abidjan and San Pedro between June 25 to July 1, down from 24,217 tonnes in the same week a year ago.

OIL-Oil slips on more signs of slowing economy
NEW YORK, July 2 (Reuters) - Oil prices edged lower on Monday as weak manufacturing data from the United States, Europe and China reinforced concerns about slowing economic growth and its threat to demand for petroleum.
"The market is jittery, with U.S. crude falling to (an initial intraday) low after the ISM data (U.S. factory activity)
added to the concerns about manufacturing slowing down, but the news from Iran showed how much uncertainty there is about that situation," said Gene McGillian, an analyst at Tradition Energy in Stamford, Connecticut.

Brent crude climbed above $98 per barrel as escalating tensions between Iran and the West offset concerns that gloomy manufacturing data from China, the United States and Europe will hurt oil demand.

POLL-US crude stocks seen falling on storm outages
July 2 (Reuters) - U.S. commercial crude oil stockpiles were forecast to have fallen last week on production cuts in the Gulf of Mexico because of Tropical Storm Debby, a preliminary Reuters poll showed on Monday.
The survey of six analysts, ahead of weekly inventory reports from industry group American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA), forecast on average that crude stocks would drop 2.2 million barrels for the week ended June 29.

Russia's H1 oil output up despite June slip
Top oil producer Russia is on course for its highest output in the post-Soviet era this year helped by new fields after a 1.1 percent rise in the first half, Energy Ministry data showed on Monday.

NATURAL GAS-US gas futures end flat despite more heat
NEW YORK, July 2 (Reuters) - U.S. natural gas futures trimmed early losses to end flat on Monday, with prices hovering near a key technical level but  well under last week's 5-1/2-month spot chart high.
The Schork Group's Stephen Schork noted bulls have "run into resistance around the 200-day moving average" near $2.83 per million British thermal units.

Euro Coal-S.African rebounds above $90/T FOB
LONDON, June 29 (Reuters) - Prompt South African FOB physical coal prices continued the rally begun last week to trade at $90.00 a tonne FOB Richards Bay on Friday, over $10.00 higher than prices seen a few weeks ago amid the panic over widespread Chinese cargo defaults.
"The market does seem to have bottomed-out - for now - $90 is the number for Richards Bay and DES," one trader said.

Iron Ore-Shanghai rebar hits 1-month low, ore extends fall
SINGAPORE, July 2 (Reuters) - China steel futures touched one-month lows, reflecting a sluggish market that has cut the appetite for raw material iron ore and prompted mills in the world's top steel producer to curb output.
"We haven't bought anything over the last week and probably we'll only consider buying if the 62-percent grade falls to around $130," said a Shanghai-based trader.

EU steel industry in terminal decline - sector chief
BRUSSELS, June 28 (Reuters) - The European Union's steel industry may need to shut three quarters of its capacity in the next two decades because of declining demand, rising costs and cheap imports, a European sector chief said on Thursday.
"It is foreseeable in the next 10, 15, 20 years, at least for normal grade steel, that production in Europe will not be competitive any more," Wolfgang Eder, president of European steel industry body EUROFER told Reuters in an interview.

Iron ore developers turn to unconventional backers
LONDON, June 28 (Reuters) - Iron ore mine developers are turning to unconventional finance providers as many banks withdraw support on likely medium-term price weakness, according to an executive at Sweden-based Nordic Iron Ore.
Benchmark iron ore rose to almost $200 per tonne in early 2011, supported by tight supply and booming demand in top consumer China.

Copper surged  as hopes of further monetary easing by major central banks helped offset worries stoked by grim macroeconomic data and nagging concerns over the festering debt crisis in Europe.

Gold edged higher, after weak manufacturing data across the globe rekindled hopes for more easing from central banks to support recovery.

METALS-LME copper hit 6-wk high on stimulus hopes
SHANGHAI, July 3 (Reuters) - Copper surged on Tuesday as hopes of further monetary easing by major central banks helped offset worries stoked by grim macroeconomic data and nagging concerns over the festering debt crisis in Europe.
A surprise rise in China's services sector Purchasing Managers' Index (PMI), which snapped two months of decline to expand at its fastest pace in three months in June, also buoyed market sentiment and boosted prices.

PRECIOUS-Gold gains, easing eyed after bleak data
SINGAPORE, July 3 (Reuters) - Gold edged higher on Tuesday, after weak manufacturing data across the globe rekindled hopes for more easing from central banks to support recovery.
Gold thrives on abundant money supply and low interest rates, which increases inflation outlook and benefits bullion which is seen as a hedge against rising prices.

Baltic index up on panamax, capesize rates
June 29 (Reuters) - The Baltic Exchange's main sea freight index, which  tracks rates for ships carrying dry commodities, rose on Friday, buoyed by higher panamax and capesize vessel rates.
"Steady enquiry in the Atlantic basin created some optimism in the market, however rates remain unchanged despite this," ship broker Braemar Seascope Ltd said in its weekly report.