Tuesday, September 11, 2012

20120911 1811 FCPO EOD Daily Chart Study.

FCPO closed : 2919, changed : -18 points, volume : higher. 
Bollinger band reading : correction range bound. 
MACD Histogram : falling lower, seller taking exposure. 
Support : 2900, 2850, 2800, 2770 level.
Resistance : 2920, 2950, 2970, 3020 level.
Comment :
FCPO resumed falling lower with better volume changed hand. Soy oil currently trading side ways recording small loss after overnight closed little lower while crude oil price trading little higher. 
Concern on slower global economy growth, high inventory sent crude palm oil price trading lower, however price recovered partly on firm crude oil price support as traders eying on Wednesday USDA grain crop data. 
FCPO technical chart study revised to suggesting a correction range bound 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.

20120911 1733 FKLI EOD Daily Chart Study.

FKLI closed : 1603.5 changed : -4.5 points, volume : higher.
Bollinger band reading : downside biased with possible pullback correction. 
MACD Histogram : falling lower, seller in control. 
Support : 1600, 1595, 1590, 1575 level.
Resistance : 1615, 1623, 1630, 1640 level.
Comment :
FKLI closed recorded loss again with better volume traded doing about 9 points discount compare to cash market that also closed lower. Overnight U.S. market closed declined lower and today Asia markets ended mixed while European markets currently trading lower. 
Sentiment continue to stayed weak during morning session as concern now come back to focus on unsolved European debt development followed by afternoon recovery as investors hold on hope on U.S. Federal Reserve will boost economic stimulus. 
FKLI daily chart study continue to calling a downside biased market development with possible pullback correction after 1600 support still defending. 
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.

20120911 1702 Regional Markets EOD Daily Chart Study.

 DJIA chart reading : side way range bound little upside biased.
Hang Seng chart reading : side way range bound.
KLCI chart reading :  downside biased with possible pullback correction.

20120911 1608 Global Markets & Commodities Related News.

GLOBAL MARKETS: Asian shares fell as investors repositioned before a German Constitutional Court ruling on the euro zone's bailout funds which could remove one risk for Europe, and a U.S. Federal Reserve meeting that may yield widely expected monetary easing. European shares looked set to fall, weighed by concerns about a potential delay to the German constitutional court ruling over the legality of the European bailout fund. Wall Street stocks fell on Monday as investors locked in gains on a recent rally ahead of possible policy action from the Federal Reserve later this week, while weakness in Intel shares weighed on the Nasdaq.(Reuters)

FOREX: The euro hovered below a near-four-month peak against the dollar as traders grew wary after the currency's sharp gains late last week and ahead of key events in Europe and the United States. (Reuters)

FOREX-Euro hovers below 4-month high, 200-day average looms
TOKYO, Sept 11 (Reuters) - The euro hovered below a near-four-month peak against the dollar on Tuesday as traders grew wary after the currency's sharp gains late last week and ahead of key events in Europe and the United States.
"As long as there are expectations of quantitative easing by the Fed, the euro is likely to have some support," said a senior trader at a European brokerage.

U.S. consumer credit falls unexpectedly in July(Reuters)
U.S. consumer credit fell in July for the first time in nearly a year as Americans reduced credit card debt, a worrisome sign for an economy that has struggled to create jobs.

China August commodity imports remain under pressure(Reuters)
China's imports of key commodities such as crude oil and soy hit multi-month lows in August on weak domestic demand, even though iron ore imports managed to gain, as hopes grew for stimulus measures to boost the world's second-biggest economy.

GRAINS: Chicago soybeans slid to a two-week low, falling for a fifth consecutive session, while corn hovered near its lowest in six weeks as investors moved out of bullish bets ahead of key U.S. government reports.(Reuters)

EU to limit use of crop-based biofuels -draft law(Reuters)
The European Union will impose a limit on the use of crop-based biofuels over fears they are less climate-friendly than initially thought and compete with food production, draft EU legislation seen by Reuters showed.

OIL: Brent crude futures fell for the first time in four sessions as investors took profits, though they remained above $114 a barrel with declines limited by hopes the U.S. Federal Reserve would unveil further steps to stimulate the economy this week. (Reuters)

China Aug iron ore imports up 7.9 pct as domestic output drops(Reuters)
China's imports of iron ore in August rose 7.9 percent from the previous month to a three-month high with buyers turning to the international market as a collapse in prices forced domestic producers to slash output.

COLUMN-Iron ore, coal price gains may be premature
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
SINGAPORE, Sept 11 (Reuters) - Any time the prices of commodities rally on the hope that something positive will happen rather than any actual change in fundamental demand, there is the risk of disappointment.
This may well be the case with iron ore and coal, both of which have gained recently in Asia on the hope that China will successfully stimulate its economy, thereby boosting demand.

China Aug metals output up, aluminium at record
HONG KONG, Sept 11 (Reuters) - China's production of most base metals rose in August, reversing declines in the previous month, with primary aluminium hitting an all-time monthly high, official data showed on Tuesday, as smelters expect demand to improve in the next 3 or 4 months.
Metal demand in China, the world's top consumer and producer of copper, aluminium, lead, zinc, nickel and tin, has fallen this year after economic activity slowed in global markets.

COLUMN-China copper imports down, stocks disconnect up
--Andy Home is a Reuters columnist. The opinions expressed are his own--
LONDON, Sept 10 (Reuters) - China's headline imports of copper dropped a notch in August, coming in at 355,856 tonnes, the second weakest monthly reading so far this year after June's 346,223 tonnes.
Cue the usual attempts to draw some meaningful conclusions about the state of Chinese copper demand and the broader health or otherwise of the Chinese economy.

China's tin purchases likely to rise by year-end -traders
HONG KONG, Sept 10 (Reuters) - Chinese solder manufacturers are likely to increase refined tin purchases by year-end as they build inventories in anticipation of economic stimulus measures, and a spike in demand for their product, in 2013, industry sources said.
China is the world's top producer and consumer of refined tin, and the latest data shows it imported 17,393 tonnes of refined tin and alloy in the first seven months of the year, up 173 percent from the same year-ago period.

China's Jan-July gold output up 7 pct on year - govt
BEIJING, Sept 10 (Reuters) - China, the world's top gold producer, produced 31.3 tonnes of the precious metal in July, bringing total output in the first seven months of the year to 208 tonnes, the Ministry of Industry and Information Technology said on Monday.
Total gold output in the first seven months this year was up 7.09 percent compared with the same period a year ago, the government said.

Iron ore posts biggest gain ever on China building plan
SINGAPORE/LONDON, Sept 10 (Reuters) - Spot iron ore posted its biggest one-day gain on record on Monday and China steel futures rose sharply for a second day, supported by hopes Beijing's approval of more than $150 billion in infrastructure projects would resuscitate steel demand.
Offer prices for imported iron ore cargoes in China rose over the weekend and the benchmark rate jumped by $6, or 6.7 percent, to $95 a tonne on Monday, based on data from information provider Steel Index.

China Aug iron ore output remains steady, steel down
BEIJING, Sept 11 (Reuters) - China produced 116.57 million tonnes of iron ore in August, inching up 1 percent from July and defying expectations of a large output cut as domestic demand held up despite plunging global prices.
Data released by the National Bureau of Statistics on Tuesday also showed that crude steel output across China fell 4.8 percent on the month to reach 58.703 million tonnes, with producers cutting runs to reflect falling demand and prices.

Vale, Brazil steelmakers rise on China measures
SAO PAULO, Sept 10 (Reuters) - Expectations of increased iron ore demand from China sent shares of Brazilian miner Vale higher on Monday while local steel makers also rose after the Asian giant approved $150 billion of infrastructure projects on Friday.
China gave the green light to 60 projects, including expanding rail track across three provinces, as it looks to energize an economy mired in its worst slowdown in three years.

BASE METALS: London copper eased from four-month peaks hit in the previous session as investors looked to German law courts and a Fed meeting this week for stimulus developments, while China's raft of infrastructure spending plans supported prices. (Reuters)

PRECIOUS METALS: Gold edged higher, paring losses from the previous session, with investors awaiting a key German ruling on the euro zone's bailout fund and a U.S. Federal Reserve decision on possible measures to stimulate the economy. (Reuters)

METALS-Copper slips from 4-month top, awaiting stimulus moves
SINGAPORE, Sept 11 (Reuters) - London copper eased on Tuesday from four-month peaks hit in the previous session as investors looked to German law courts and a Fed meeting this week for stimulus developments, while China's raft of infrastructure spending plans supported prices.
"From our side, we expect prices to stabilise. If any easing announcements are more pronounced than expected you can easily have prices trend higher. The dollar has come under pressure, so part of this move is dollar related," said Dominic Schnider, Head of Commodity Research at UBS Wealth Management.

PRECIOUS-Gold firms; investors eye Fed decision, German ruling
SINGAPORE, Sept 11 (Reuters) - Gold edged higher on Tuesday, paring losses from the previous session, with investors awaiting a key German ruling on the euro zone's bailout fund and a U.S.  Federal Reserve decision on possible measures to stimulate the  economy.
"Investors have become very enthusiastic about gold, as well as silver judging by ETF holdings and COMEX positions," said Li  Ning, an analyst at Shanghai CIFCO Futures. "Gold may continue  to fluctuate at these elevated levels, with $1,700 providing  short-term support."

20120911 1600 Palm Oil Related News.

VEGOILS-Palm oil falls to 1-mth low on stocks, USDA in focus - RTRS
11-Sep-2012 13:13
Malaysia palm exports up, but sentiment bearish on high stocks Futures fall to 2,878 ringgit, the lowest since Aug. 15 Palm looks netural in 2,895-2,943 range -technicals
By Chew Yee Kiat
SINGAPORE, Sept 11 (Reuters) - Malaysian crude palm oil futures slipped to a near one-month low on Tuesday, as traders turned cautious on high stocks and ahead of key reports by the U.S. Department of Agriculture (USDA) due this week.
The Malaysian Palm Oil Board (MPOB) reported August stocks at a 10-month high of 2.1 million tonnes, erasing some gains in palm oil futures that are trading 9 percent lower so far this year.
Traders also avoided taking risky positions ahead of the USDA's monthly supply-demand and crop production reports that could provide insight into the extent of drought damage on soybean crops.
"Today's selloff is purely technical. Basically we saw long liquidation coming in early in the morning. After the market broke below 2,900 ringgit, further selling came in," said a trader with a foreign commodities brokerage in Malaysia.
By the midday break, the benchmark November contract FCPOc3 on the Bursa Malaysia Derivatives Exchange slipped 1.8 percent to 2,883 ringgit ($930) per tonne. Prices earlier fell to 2,878 ringgit, the lowest level since Aug. 15.
Total traded volume stood at 23,763 lots of 25 tonnes each, much higher than the usual 12,500 lots.
Technicals will remain neutral until palm oil falls out of the range of 2,895-2,943 ringgit, said Reuters market analyst Wang Tao, adding that a drop below 2,895 ringgit will extend to 2,867 ringgit.
Demand strengthened as Malaysia's palm oil exports rose as much as 30 percent for the Sept. 1-10 period from a month ago, cargo surveyor data showed on Monday.
"Though the latest data shows optimism on the export side on the back of higher tax-free crude palm oil quota, a growing concern is on the stockholding level, which has now spiralled to more than 2 million tonnes," said Malaysia-based TA Securities in a note to clients.
"This would adversely impact the price of crude palm oil, moving forward. To aggravate further, Indonesia's stock level appears to be higher than consensus expectations."
Brent crude futures fell for the first time in four days on Tuesday as investors took profits, though they stayed near $115 a barrel with declines limited by hopes the U.S. Federal Reserve would unveil further steps to stimulate the economy this week.
In other vegetable oil markets, U.S. soyoil for December delivery BOZ2 rose 0.2 percent by 0457 GMT. The most active January 2013 soyoil contract DBYF3 on the Dalian Commodity Exchange was almost flat by the midday break.

20120911 1319 Gold Daily Chart Study.

CME Gold Market Recap :
The gold market ended up posting moderate losses during Monday's session, but only gave back a small portion of Friday's huge gains. Expectations that the Federal Reserve will start fresh quantitative easing measures at this week's FOMC meeting played a large role in keeping gold prices in close proximity to their recent highs. Reports of labor unrest in the South African mining industry were also seen as a positive factor for the gold market early this week. However, lukewarm Chinese economic data over the weekend ended up eroding risk sentiment for gold and other physical commodity markets.

Gold holds steady to lower as investors await Fed monetary policy moves (Source: Forexpros.com)
Forexpros - Gold prices slipped in Asian trading on Tuesday as investors sold the yellow metal to await the outcome of a two-day monetary policy meeting at the Federal Reserve that begins Wednesday.
The precious metal soared on Friday after the U.S. government released a very poor August jobs report that fueled already building sentiments the Fed is planning to stimulate the U.S. economy, this week.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery were down 0.12% and trading at USD1,727.15 a troy ounce, up from a session low of USD1,726.75 and down from a high of USD1,728.25 a troy ounce early during the session.
Gold futures were likely to test support at USD1,724.55 a troy ounce, Monday's low, and resistance at USD1,740.75, Monday's high.

Chart Reading :
Bollinger band reading : pullback correction upside biased.
MACD Histogram : weakening, profit taking.
Support : 1700, 1675, 1650 level.
Resistance :  1750, 1785, 1800  level.
Idea : Long at pullback correction/weakness/support, set stop loss at lower support level. Not encourage to short.

20120911 1313 Crude Oil Daily Chart Study.

CME Crude Oil Recap :
October crude oil grinded higher in the afternoon hours and managed to close the session slightly higher. Despite the late day advance, October crude oil was still confined inside of Friday's trading range. The market faced conflicting headings during the session, first from weaker Chinese economic data over the weekend that weighed on global oil demand prospects, then on the hopes that the US Fed might pursue another round of quantitative easing at this week's policy meeting. It is possible that the crude oil market drafted a measure of support on growing frustration at the IAEA over Iran's nuclear program. The latest comes as the IAEA requests for access to an Iranian military site to inspect for nuclear weapon development.

Crude dips as market awaits policies from upcoming Federal Reserve meet (Source: Forexpros.com)
Forexpros - Crude oil futures fell in Asian trading on Tuesday as investors sold the commodity for profits, cooling a recent rally that began after poor U.S. jobs data sparked talk the Federal Reserve will stimulate the economy via monetary stimulus measures.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at USD96.26  a barrel on Tuesday, down 0.29%, off from a session high of USD96.61 and up from an earlier session low of USD95.41.
The U.S. Bureau of Labor Statistics reported Friday that the U.S. economy created a net 96,000 nonfarm payrolls in August, well below market calls for 125,000 jobs.
The weak jobs numbers fueled already growing sentiment that the Federal Reserve will roll out a third round of quantitative easing at two-day monetary policy meeting that starts Wednesday.
Under quantitative easing, the Fed buys assets such as Treasury holdings or mortgage-backed securities held by banks, pumping the economy full of fresh liquidity in a way that pushes down interest rates to encourage investing and hiring.

Chart Reading :
Bollinger band reading : correction range bound market.
MACD Histogram : recovering.
Support : 94, 92, 91.5 level.
Resistance : 97, 98, 100 level.
Idea : Long at support, must set stop loss few points below support. Short at resistance, must set stop loss few points above support.

20120911 1111 Global Markets & Commodities Related News.

Asia risk mkts consolidate, Euro, USD supply soars 11-Sep-2012 08:56 (Reuters)
SYDNEY, Sept 11 (IFR) - Risk markets mostly consolidated their recent heady gains overnight with some modest profit taking seen ahead of tomorrow’s German Constitutional Court ruling on the legality of the ESM bailout fund.
Spanish 2 and 10-year yields ended unchanged and up 5bp respectively at 2.80% and 5.62% while the FTSE 100 and DAX finished flat over the session.
China growth concerns were underlined by poor August trade data although Beijing has managed to provide comfort via its massive infrastructure spending plans that are underpinning commodity prices.
Expectations remain high for the Fed to announce QE3 when this month's 2-day FOMC meeting ends on Thursday.
Confirmation of this should strengthen the "Draghi risk rally" and further weaken the greenback.
US shares endured a late sell-off with the Dow Jones shedding 0.39% as Treasuries traded within very narrow ranges throughout New York trading.

[Primary market]
It was very busy in the European and the US markets overnight with [Commonwealth Bank of Australia] (Aa2/AA-/AA-) continuing its international issuance splurge overnight with three-tranche USD3.25bn 3 and 5-year fundraising.
The USD1bn 3-year FRN, USD1bn 3-year fixed rate and USD1.25bn 5-year fixed rate pieces priced at 3-month Libor+80bpm T+95bp and T+130bp respectively.
This follows Friday’s EUR750m (USD960m) 3-year FRN while on August 29 CBA visited the sterling market with a 3-year GBP300m (USD475m) deal.
At home the Aussie major launched a hybrid Tier 1 note (PERLS VI) last week with the margin due to be set today. Price talk was heard last week at 380bp-400bp over BBSW.
South Korea's [NongHyup Bank] (A1/A/A) raised USD500m from a 2.25% 5-year Reg S/144a note at T+165bp.

GLOBAL MARKETS-Asian shares ease ahead German ruling, Fed meeting
TOKYO, Sept 11 (Reuters) - Asian shares eased ahead of a key German ruling on the euro zone's bailout funds and the U.S. Federal Reserve's policy decision, repositioning from last week's rally spurred by heightened speculation for more stimulus globally.
"Looking at the U.S. and European markets, investor sentiment does not seem to be that strong." said Masayuki Doshida, senior market strategist at Rakuten Securities.

China commodity imports mixed, volatility to persist
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
SINGAPORE, Sept 10 (Reuters) - The trick with China's commodity imports is working out whether the bottom has been reached or whether several more months of mixed signals are likely.
Certainly the August figures contained something to support virtually any argument you would care to make about the outlook for demand.

OIL-Oil higher on expectations of Fed economic stimulus
NEW YORK, Sept 10 (Reuters) - Oil rose on Monday in choppy trading as supportive expectations that the U.S. Federal Reserve will act to stimulate the economy were countered by weak data from China that raised concerns about demand for oil.
"The market is clearly betting on a third round of quantitative easing from the United States," said Tamas Varga, analyst at PVM Oil Associates in London.

POLL - US crude stocks forecast down for 2nd week after Isaac
Sept 10 (Reuters) - U.S. crude oil stockpiles likely fell last week for the second straight time, with U.S. Gulf Coast oil production and imports still reeling after Hurricane Isaac, a preliminary Reuters poll showed on Monday.
Crude inventories are forecast to have fallen by 2.1 million barrels in the week to Sept. 7, according to the survey of seven analysts.

NATURAL GAS-US natgas futures end up 5 pct, 1st gain in 4 sessions
NEW YORK, Sept 10 (Reuters) - U.S. natural gas futures ended higher on Monday for the first time in four sessions, driven by technical buying after last week's slide and expectations for another light weekly inventory build on Thursday.
"People are expecting a small storage injection this week, but we're seeing a fall off in temperatures, which should lower demand and limit the upside," said Jonathan Lee, an energy procurement consultant at Ecova Inc. in Washington.

EURO COAL-Drops $1-$1.50 with weaker gas
LONDON, Sept 10 (Reuters) - Physical coal prices fell by $1.00-$1.50 a tonne in line with weaker UK gas, despite a rise in oil on expectations that the U.S. Federal Reserve will act to stimulate the economy.
"Prices dropped by $1.00 but there's very little activity," one European trader said.

20120911 0941 Local & Global Economy Related News.

Malaysia is expected to sustain its trillion ringgit trade this year despite the uncertainties in Europe and the  sluggish United States' economy, according to Deputy Minister of International Trade and Industry Datuk Mukhriz Tun Dr Mahathir who added that the target would be driven by huge exports to China and fast-growing Middle East and India markets. (Bernama)

Affordable housing will drive  construction activities in the property sector while demand for high-end properties is expected to "taper off", says the Construction Industry Development Board Malaysia (CIDB), whose CEO added that there were expectations of more measures to deal with affordable housing by the government soon. (StarBiz)

The Industrial Production Index (IPI) increased by 1.4% yoy in Jul (3.7% in Jun), underpinned by  the stronger performance of the manufacturing sector, whose index rose 5.5% due to increases in petroleum, chemical, rubber and plastic products (9.9%); transport equipment and other manufactures (17.5%); and electrical and electronics products (1.9%). The electricity index rose 2.8% yoy whilst mining contracted 10.4% yoy. (StarBiz)

The federal government through the Economic Planning Unit under the Prime Minister's Department has channelled  RM1.38bn  this year for infrastructure projects to boost investment and economic activities in Kedah. Federal Development Department director for Kedah, Datuk Azmi Lateh said the federal government's commitment 'had so far managed to attract direct foreign investments worth RM1.1 billion, but the amount did not include the small projects approved from time to time, reaching almost RM60m. (Bernama)

US consumer credit outstanding fell US$3.3bn in Jul (a revised US$9.8bn in Jun) on the back of a US$4.8bn fall in revolving credit. Analysts were expecting a level of US$9.8bn. (Bloomberg)

The Eurozone Sentix investor sentiment index climbed to -23.2 in Sep, up from -30.3 in Aug, and well above the consensus forecast for a dip to -30.7. This is the first improvement since Mar thanks to the ECB’s plans to rescue the euro. (Reuters)

China, the world’s second-biggest oil consumer,  increased gasoline and diesel prices for the second time in about a month as rising crude costs threaten to curb profits at the nation’s largest oil refiners. The maximum at which gasoline can be sold to motorists rose by Rmb550 (US$87) a metric ton and diesel by  Rmb540, according to the  National Development and Reform Commission. (Bloomberg)

Overall  Chinese imports fell 2.6% yoy in Aug (4.7% in Jul) while  exports increased 2.7% yoy (1% in Jul), causing the  trade surplus to widen to US$26.66bn (US$25.25bn in Jul). (Bloomberg, FT)

In  China, passenger vehicle sales increased 11.2% yoy (8% in Jul) to 1,158,921 units in Aug. (China Daily)

China will earmark Rmb14bn (US$2.22bn) in  subsidies  to encourage the purchases of six types of energy-saving products, including desktop computers, air-conditioners, fans, water pumps, compressors and transformers. (Xinhua)

South Korea unveiled new stimulus measures worth US$5.2bn to boost domestic demand. The finance ministry said it would push for fiscal support worth 5.9tr won, 4.6tr won for the remainder of this year and 1.3tr won for next year. The new stimulus measures are expected to boost economic growth by 0.06% pts this year and 0.10% pts for next year. (CNA)

In  Japan,  nationwide compensation fell to ¥243.5tr (US$3.1tr) in 2Q12, only 0.7% above the level in the final quarter of 2009, which was the lowest since 1991. (Bloomberg)

Japan’s sentiment index for general households  rose in Aug to 40.5 from 39.7 in Jul, although the outlook remained uncertain due to worries about the economy. (Reuters)

Japan revised down its quarterly growth figures. On an annualised basis, the economy grew a revised 0.7%, lower than a preliminary 1.4% rise. The current account recorded a surplus of 625.4bn yen (US$8.0bn), down from a year ago but ahead of a market forecast of 438.2bn yen. (CNA)

Bond markets in emerging East Asia expanded by 8.6% yoy to US$5.9tr in Jan-Jun 2012 on double-digit growth in the region’s corporate bond markets, according to the Asian Development Bank. (Bernama)

Indonesia’s budget deficit as at 13 Aug, amounted to Rp35.2tr (US$3.66bn). Government spending reached 53.8% of the 2012 ceiling while  revenues reached 58.79% of the target. (Jakarta Globe)

Indonesia's domestic motorcycle sales fell 36.8% yoy in Aug (21.5% yoy in Jul) because of a higher downpayment requirement that came into effect on 15 Jun. (Reuters)

The Philippines’s move to enhance oversight of real-estate lending this year will help curb speculation and improve its ability to  prevent a property bubble from forming, the central bank said. The regulator ordered banks to provide more details on their real-estate exposure in Aug, including reporting investments in stocks and bonds that fund property ventures and loans to developers of low-cost homes. (Bloomberg)

International tourist arrivals to Thailand during the first eight months of this year increased by 8.66% yoy to 14.3m, and the Tourism Department expects the momentum to continue until year end. (Bangkok Post)

The  Bank of  Thailand  is  closely watching the next move by the US Federal Reserve, a ruling from Germany's Constitutional Court and implementation of a new bail-out fund in the euro zone, all of which will have impacts on the global economy. Thailand plans to introduce a bill letting it borrow THB2.2tr (US$70.8bn) for  infrastructure projects over the next seven years, finance minister Kittiratt Na Ranong said, adding that  the earlier plan was to borrow THB1.6-2.0tr, but the amount has been increased to include utilities and telecommunications projects. (Reuters)

Vietnam’s government acknowledged that  nonperforming loans—many made to inefficient state-owned companies—could be as high as 10% of the banking system. (WSJ)

Vietnam will spend VND12.77tr (over US$608m) between now and 2015 to improve the country's  healthcare system, according to a new National Target Health Programme approved by Prime Minister Nguyen Tan Dung recently. (Vietnam News)

20120911 0941 Malaysia Corporate Related News.

The Battersea Power Station project here is expected to contribute significantly to  Sime Darby  group and its property division in the next two years. Sime Darby group  COO, Datuk Abd Wahab Maskan, said the project has attract interests from Malaysia as well as other countries, which included large property development investment companies. "There are interest shown by those who had suggested sub-joint venture and possible booking of retail blocks," Abd Wahab added. In terms of the expected profit margins from the investment, Abd Wahab said when the group invested in real estate, the minimal margin expected was 25 to 30%. (Starbiz)

SapuraKencana Petroleum's joint venture SapuraAcergy Sdn Bhd has secured a US$45m (about RM140m) contract to provide a vessel in the Gulf of Mexico. It said on Monday SapuraAcergy Sdn Bhd was awarded a contract to provide a vessel Sapura 3000 to Construcciones Maritimas Mexicanas S.A. de C.V. SapuraAcergy is a JV between SapuraKencana and Subsea 7 S.A."The award comprises provision of Sapura 3000 to undertake heavy lifts in the Gulf of Mexico region. The charter commenced on Aug 18, 2012 for a duration of 125 days," it said. (StarBiz)

Exports of Malaysian palm oil products for Sept. 1-10 rose 26.8% to 453,302 tonnes from 357,372 tonnes for Aug 1-10, cargo surveyor Intertek Testing Services said. (Reuters)

The Malaysian export of crude palm oil (CPO) is expected to pick up in the coming months, supported by the opening of more markets from emerging economies and a substantial discount to soybean oil.  Malaysian Palm Oil Council chairman Datuk Lee Yeow Chor is confident upcoming export figures for the country will strengthen as more markets open up in emerging economies, especially from Africa, Middle East and India. (StarBiz)

Africa may become a competitor to the Malaysian palm oil industry in the future, said an economist and professor of water services management at UNESCO-IHE during the International Palm Oil Sustainability Conference 2012. "Africa benefits from lower wages, its proximity to European countries and tax advantages - they don't pay duties because of the ACP (Africa, Caribbean and Pacific Group of States) status. These are three factors that in principle will work in favour of Africa," said Prof Dr Meine Pieter van Dijk. (Financial Daily)

The  New North Klang Straits Bypass (NNKSB), a 17.5km stretch of highway in Klang, Selangor, is up for sale, sources say. The highway, together with the concession rights, is hoped to fetch between RM350m and RM400m, a source said. The government had, as far back as August 1995, awarded the highway concession to Lebuhraya Shapadu Sdn Bhd, but the company  is currently under receivership. The project is understood to have cost about RM536 million, including the cost of land. The expressway commenced operations in 2002 and there are about eight years left before its concession expires. Lebuhraya Shapadu is part of Shapadu Corp Sdn Bhd, a diversified Bumiputera group involved in activities such as oil and gas, renewable energy and transportation. (BT)

UDA Holdings Bhd, the owner and master developer of the  Pudu Jail redevelopment project, will unveil its plans for the project by year-end, Grp MD Ahmad Abu Bakar said. UDA, wholly-owned by the Finance Ministry, had originally planned for the redevelopment of the site  - to be named  Bukit Bintang City Centre - to include a transit centre, serviced apartments, office space, recreational areas, hotel and commercial space worth RM34bn. The ministry wants the 8ha site to be split into three parcels, two of which must have significant Bumiputera participation. UDA prefers Everbright International Construction Engineering Corp's (EICEC)  proposal, which features a large shopping mall with an ice rink and a 1,600-seat cinema that is located directly above the Kowloon MTR station. (BT)

The Construction Industry Development Board (CIDB) is upbeat that the construction sector will perform at its best next year with more than RM150bn in government projects coming on stream. They include the RM62bn Petronas Refinery and Petrochemical Integrated Development (Rapid), the My Rapid Transit (MRT), the RM26bn Tun Razak Exchange, and the KL-Singapore high-speed rail (HSR). The Land Public Transport Commission (SPAD) is expected to kick-start the process of calling for tenders for the HSR, which is estimated to be worth around RM25-30bn, by mid-2013. (BT)

Bank Simpanan Nasional (BSN) expects its net income to touch RM1.3bn by the end of this year from RM1.032bn in 2011, mainly driven by higher loan revenue and better utilisation of the community bank through various government initiatives. Deputy chief executive for retail banking, Winston E. Jeyaprakash said BSN expects better contribution this year from its non-interest income with its enhanced infrastructure for wealth management and remittance. He said 2012 is expected to be a better year for BSN as it has plans for enhanced versions of existing products as well as better and efficient online banking services. (BT)

Sabah Energy Corporation is subscribing for a stake in Petronas Gas's unit which will undertake the construction and development of the LNG regasification facilities in Lahad Datu, Sabah. Sabah Energy would subscribe for one share of RM1,000 in Regas Terminal (Lahad Datu) Sdn Bhd (RGT). "The agreement further provides for Sawarak Energy with the option of subscribing up to 20% of the equity of RGT within a stipulated time period," it said. The facilities are scheduled to be completed in 2015 and will have a send out capacity of 760k tonnes p.a. (Starbiz)

TSH Resources Bhd and partners may unveil a new game plan for Pontian United Plantations Bhd's investors as part of its renewed takeover offer plan for the company. TSH Resources chairman  Datuk Dr Kelvin Tan Aik Pen said the plan will be positive for shareholders, with added value. "TSH is a long-haul player in the industry and we want to stay in the marathon. The new plan will have value for shareholders," Tan said.  He, however, declined to elaborate, saying TSH will issue a statement this Friday followed by the unveiling of the new game plan in the next two weeks. (BT)

LBS Bina Group Bhd's (LBGB's) wholly-owned subsidiary, LBS Bina Holdings Sdn Bhd, has entered a deal to acquire an 18% stake in property development company Casa Inspirasi Sdn Bhd (CISB) for RM10m cash. The proposed acquisition will increase LBS's stake in CISB to 58%. "The acquisition represents a further opportunity for LBGB group to strengthen its position and market presence in Cameron Highlands, particularly in the vibrant Brinchang town," LBGB said. (StarBiz)

Firefly is believed to be returning to its jet operations as early as next year. Business Times has learnt that Firefly is considering Canadian aircraft maker Bombardier Aerospace as a potential aircraft supplier to diversify from its current fleet of  turbo-propeller planes ATR. ―It is not known if Firefly will reinstate the East Malaysia routes, but other routes being considered when the community airline expands into jets are Myanmar and Vietnam,‖ aviation sources said. CEO  Ignatius Ong said, ―We are looking at all turboprop options on the table which can cater to our existing network for increases in frequencies, as well as a longer range within Asean to give us more potential destinations. Malaysian Airlines had, since early 2011, used Firefly to compete against  AirAsia by launching competitively-priced flights from Kuala Lumpur to Sabah and Sarawak. In October last year, the national carrier said the Boeing 737-800 aircraft operated by Firefly will be redeployed into the parent company’s operations, effective December 4 2011. MAS had, at the time, cited heavy losses being incurred by Firefly’s jet operations. (BT)

Pintaras Jaya has won a contract worth RM21.6m from Sime Darby Melawati Development Sdn Bhd to undertake piling and pile cap works for a condominium project in Desa Melawati, Setapak. (BT)

Perwaja Holdings clinched an iron ore mining concession in Bukit Besi from the Terengganu government, MD Tan Sri Pheng Yin Huah said. Although a concession of sorts would usually last up to 42 years, it is still subject to the state. (Financial Daily)

UDA Holdings Bhd will submit the master plan for the redevelopment of the former Pudu jail site to the Finance Ministry by year-end, said group managing director Ahmad Abu Bakar. "We will submit it to the ministry and let it [the government] decide," he said. Last year, the government directed UDA to redraw the master plan to enable the participation of more bumiputeras in the real estate sector in Malaysia. (Financial Daily)

Media Prima: Looking ahead to Next Big Thing. MEDIA Prima Bhd yesterday unveiled its joint initiative project to boost the local multi-billion creative industry, called The Next Big Thing.The project, collaborated with three other parties, Multimedia Development Corp (MDec), Cradle Fund Sdn Bhd and Rhythm & Hues Studio is aimed at recognising and nurturing creative local talent to become globally competitive. (Source: Business Times)

Hing Yiap: Acquisition of Asia Brand “fair”. Hing Yiap Group’s acquisition of six companies from Asia Brand group (ABG) for MYR245m is “fair” said independent adviser, Ferrier Hodgson, in a filling to Bursa Malaysia today. (Source: The EdgeDaily)

20120911 0930 Global Markets Related News.

Asia FX By Cornelius Luca - Mon 10 Sep 2012 17:04:08 CT (Source:CME/www.lucafxta.com)
The appetite for risk disappeared on Monday on profit taking after three days of gains ahead of the Federal Reserve's decision and a German constitutional court ruling on whether Germany may contribute to the Eurozone's rescue fund. This pullback should be temporary and could resume as early as Tuesday in the US. Most of the European and commodity currencies edged lower after surging on Friday. The US stock markets, gold and oil ended lower. The short-term outlook for the European and commodity currencies is sideways. The medium-term outlook for most of the foreign currencies is slightly bullish. The LGR short-term model is long on all foreign currencies. Good luck!

US: The consumer credit came in at -$3.28 billion in July, down from $6.46 billion in June.

Today's economic calendar
Japan:  BSI large manufacturing for the third quarter
Japan:  Machine tool orders for August
UK: RICS housing price balance for August
Australia: National Australia Bank's business conditions for August

Asia Stocks Fall as Greece Debt Overshadows Stimulus Bets (Bloomberg)
Asian stocks fell before a court ruling on German participation in Europe’s permanent bailout fund as investors wait to see if the Federal Reserve will boost stimulus this week. Camera maker Canon Inc. (7751), which gets 31 percent of its revenue in Europe, slid 0.5 percent. Australia & New Zealand Banking Group Ltd. (ANZ), Australia’s third-largest lender, dropped 0.5 percent. Shares of China Petroleum and Chemical Corp. may be active as China increases gasoline and diesel prices. The MSCI Asia Pacific Index declined 0.5 percent to 118.61 as of 9:27 a.m. in Tokyo, with the regional benchmark index headed for the first drop in four days. Markets are yet to open in Hong Kong and China. Almost six stocks dropped for each that rose on the measure.
“There’s still a lot of uncertainty around the implementation of policy in Europe,” said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion. “The German constitutional court ruling on ESM is obviously a key risk over the next few days and there’s talk about Greece struggling to come out with budget cuts,” he said, referring to the European Stabilization Mechanism that is designed to rescue indebted nations in the euro zone. The MSCI Asia Pacific Index gained 1.7 percent this quarter through yesterday as expectations of further stimulus measures overshadowed signs of a global economic slowdown. The Asian benchmark traded at 12.4 times estimated earnings, compared with 13.8 times for the Standard & Poor’s 500 Index (SPXL1) and 12 times for the Stoxx Europe 600 Index.

Japanese Stocks Decline on Mounting Greece Aid Concern (Bloomberg)
Japanese stocks dropped as Greece’s struggle to qualify for aid heightened concern about the euro- area debt-crisis, overshadowing speculation central banks will take action to boost economic growth. Nippon Sheet Glass Ltd., which gets 41 percent of sales in Europe, slid 3.5 percent. Panasonic Corp. retreated 2.2 percent as Moody’s Investors Service cut its long-term credit rating. Toyota Motor Corp. led declines among automakers after car sales in China missed estimates. The Nikkei 225 Stock Average (NKY) slid 0.7 percent to 8,811.33 as of 9:01 a.m. in Tokyo. The broader Topix Index declined 0.8 percent to 731.74, with three shares falling for each that rose. Shares fell amid opposition to the European Stabilization Mechanism, a bailout fund for the euro region.
“There’s still a lot of uncertainty around the implementation of policy in Europe,” said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion. “The German constitutional court ruling on ESM is obviously a key risk over the next few days and there’s talk about Greece struggling to come out with budget cuts.”

U.S. Stocks Retreat as Greece Overshadows Stimulus Bets (Bloomberg)
U.S. stocks fell, after the Standard & Poor’s 500 Index rose to the highest level since 2008, as concern over Greece’s debt crisis overshadowed speculation central banks will take action to spur the economy. Intel Corp. (INTC) lost 3.8 percent after Morgan Stanley cut its earnings forecasts and Nomura Holdings Inc. said estimates for the largest chipmaker’s profit next year may fall further. Apple Inc. (AAPL) dropped 2.6 percent as technology shares tumbled 1.3 percent, the most among 10 S&P 500 groups. International Paper Co. (IP) slid 4.2 percent after Deutsche Bank AG cut its rating.
The S&P 500 fell 0.6 percent to 1,429.08 at 4 p.m. in New York. The Dow Jones Industrial Average slid 52.35 points, or 0.4 percent, to 13,254.29. The Nasdaq Composite Index lost 1 percent to 3,104.02. About 5.6 billion shares traded hands on U.S. exchanges, 7.3 percent below the three-month average, while the Chicago Board Options Exchange Volatility Index, known as the VIX, rose 13 percent, the biggest jump in seven weeks, to 16.28. “Europe will continue kicking the can down the road and there’s no quick solution,” Walter “Bucky” Hellwig, who helps manage $17 billion at BB&T Wealth Management in Birmingham, Alabama, said in a telephone interview. “Macro numbers have been very unimpressive, but there’s this aspect of expansionary monetary policy decisions that have been driving prices higher.” He said, “The market will turn on what the Federal Reserve does this week.”
The S&P 500 climbed last week to a four-year high after the European Central Bank approved a bond-buying plan and investors bet Fed Chairman Ben S. Bernanke will continue to support economic growth. The equities index is 20 percent above its level on Sept. 15, 2008, the first trading day after Lehman Brothers Holdings Inc. filed the world’s biggest bankruptcy and prompted a 46 percent drop through March 9, 2009. The gauge is less than 10 percent from its record closing high after rising 14 percent this year.

U.K. Stocks Halt Two-Day Rally After Data; AB Foods Drops (Bloomberg)
U.K. stocks halted a two-day rally as reports showed that China’s imports slid and a gauge of confidence among Britain’s executives fell to a record low. Kazakhmys (KAZ) Plc led metal producers higher as Chinese import data fueled speculation the country will opt for further economic stimulus. Xstrata Plc (XTA) rose 1.2 percent as Glencore International Plc (GLEN) said its revised takeover offer for the Swiss mining company is final. Associated British Foods Plc slid 2 percent, leading so-called defensive companies lower. The FTSE 100 (UKX) Index slid 1.6 points, or less than 0.1 percent, to 5,793.2 at the close in London, after retreating as much as 0.3 percent and advancing as much as 0.2 percent. The gauge climbed 1.5 percent last week after European Central Bank policy makers approved an unlimited bond-purchase program. The broader FTSE All-Share Index was also little changed, while Ireland’s ISEQ Index fell 0.1 percent.
“A lot of those hopes for central-bank intervention are going to help sentiment, but I think there will be a lot of volatility near term,” Yogi Dewan, chief executive officer at Hassium Asset Management LLP, said in a phone interview. “With so much uncertainty, we are really quite guarded. We would still sit on the sidelines.” China’s imports unexpectedly declined, signaling more stimulus may be needed after the government last week said it approved road and subway projects across the country.

Emerging Stocks Rise to Two-Week High on Stimulus Bets (Bloomberg)
Emerging-market stocks rose, sending the benchmark index to a two-week high, as signs of weak economic growth from China to the U.S. spurred speculation that policy makers will take more steps to counter the slowdown.
The MSCI Emerging Markets Index (MXEF) advanced 0.1 percent to 969.97 at 5:01 p.m. in New York, climbing for a third day. Brazilian steelmaker Cia. Siderurgica Nacional SA posted its biggest three-day gain since January 2009 and AU Optronics Corp. (2409) surged 7 percent, the most in three years, after a report that Taiwan will ease curbs on Chinese investments. Zoomlion Heavy Industry Science & Technology Co. (1157), a Chinese construction- equipment maker, rose to a three-week high.
Chinese President Hu Jintao urged governments in Asia to speed up infrastructure development in a Sept. 8 speech, while South Korea announced $5.2 billion of economic support measures today. Reports showed China’s imports fell in August while industrial output rose the least in three years. The Federal Reserve meets this week to discuss potential asset purchases after the U.S. added fewer-than-estimated jobs last month.
“The fiscal stimulus in China is meaningful and could help turn things around,” Greg Lesko, who helps manage over $700 million at Deltec Asset Management in New York, said in a phone interview. “Over the short-term, I’d like to see the data improve some, which is what we really need to see a sustained rally.”

Aussie, Kiwi Stay Lower as China Concern Saps Risk Demand (Bloomberg)
The Australian and New Zealand dollars remained lower as concern deepened that China’s growth is slowing, hurting demand for commodity-related currencies. The so-called Aussie maintained its sharpest slide in a week as investors await results of a private survey on business confidence amid speculation the Reserve Bank of Australia may resume interest-rate cuts to shield its economy from a global slowdown. Demand for the South Pacific nations’ currencies was supported by bets the Federal Reserve will announce a new round of asset purchases known as quantitative easing this week. “While the economy may be bottoming out, it has yet to show signs of an imminent recovery,” Mary Nicola, a New York- based currency strategist at BNP Paribas SA, wrote in a note to clients today, referring to China. “The AUD remains vulnerable to further downside as weak China data augment market expectations for a rate cut from the RBA.”
The Aussie was little changed at $1.0334 as of 10:01 a.m. in Sydney from yesterday, when it declined 0.5 percent, the biggest drop since Sept. 3. It fetched 80.87 yen from 80.91. The New Zealand dollar bought 80.89 U.S. cents from 80.88, after falling 0.5 percent yesterday. The currency was at 63.28 yen, 0.1 percent lower than the close yesterday. Australian government bonds were little changed, with the yield on 10-year notes adding one basis point, or 0.01 percentage point, to 3.14 percent.

Big Banks Hide Risk Transforming Collateral for Traders (Bloomberg)
JPMorgan Chase & Co. (JPM) and Bank of America Corp. are helping clients find an extra $2.6 trillion to back derivatives trades amid signs that a shortage of quality collateral will erode efforts to safeguard the financial system. Starting next year, new rules designed to prevent another meltdown will force traders to post U.S. Treasury bonds or other top-rated holdings to guarantee more of their bets. The change takes effect as the $10.8 trillion market for Treasuries is already stretched thin by banks rebuilding balance sheets and investors seeking safety, leaving fewer bonds available to backstop the $648 trillion derivatives market. The solution: At least seven banks plan to let customers swap lower-rated securities that don’t meet standards in return for a loan of Treasuries or similar holdings that do qualify, a process dubbed “collateral transformation.” That’s raising concerns among investors, bank executives and academics that measures intended to avert risk are hiding it instead.
“The dealers look after their own interests, and they won’t necessarily look after the systemic risks that are associated with this,” said Darrell Duffie, a finance professor at Stanford University who has studied the derivatives and securities-lending markets. “Regulators are probably going to become aware of it once the practice gets big enough.” Adding to the concern is the reaction of central clearinghouses, which collect from losers on derivatives trades and pay off winners. Some have responded to the collateral shortage by lowering standards, with the Chicago Mercantile Exchange accepting bonds rated four levels above junk.

Consumer Credit in U.S. Unexpectedly Falls $3.28 Billion (Bloomberg)
Consumer borrowing in the U.S. unexpectedly decreased in July for the first time in almost a year, restrained by a second straight decline in credit-card debt. The $3.28 billion drop followed a revised $9.8 billion jump the previous month that was bigger than first estimated, the Federal Reserve said today in Washington. Economists projected a $9.2 billion rise, according to the median forecast in a Bloomberg survey. Revolving credit, which includes credit card spending, decreased $4.82 billion, the most since April 2011. The drop in credit-card borrowing coincides with a slowdown in hiring this year and a rise in consumer pessimism that indicate households are wary of taking on debt. Employers added fewer workers to payrolls than forecast in August, while a gain in average hourly earnings from a year earlier matched the smallest increase since records began in 2007.
“Households are definitely still in deleveraging mode, they’re hesitant to take on new debt,” said Ryan Wang, an economist at HSBC Securities USA Inc. in New York. “I think credit card debt is going to be flat to up slightly, and mortgage balances are still falling.” Estimates in the Bloomberg survey of 37 economists ranged from gains of $5 billion to $15 billion after a previously reported June increase of $6.46 billion.

Stagnant Incomes Signal Curbs on U.S. Consumer Spending: Economy (Bloomberg)
Wages are stagnating as the job market cools, restraining the consumer spending that is needed to sustain the U.S. economic recovery. Average hourly earnings were little changed in August from the prior month and up 1.7 percent from a year earlier, matching the smallest gain since records began in 2007, the Labor Department reported last week. Payroll growth slowed to 96,000 last month, while the unemployment rate fell as more people left the labor force. Limited employment and wage prospects together with the highest gasoline prices in four months are straining household budgets after the weakest quarter for spending in a year. With little else to spur the expansion, Federal Reserve policy makers meeting this week are set to consider further easing to shore up the world’s largest economy.
“Real wages are going nowhere -- something between nowhere and down -- depending on what occupation you are in,” Alan Blinder, a Princeton University economist and former Fed vice chairman, said in a Sept. 7 interview on Bloomberg Radio’s “Surveillance” with Tom Keene. “With a weak labor market -- and we have had a very weak labor market for four years -- there is not a lot of prospect for a turnaround in that.” The so-called fiscal cliff of U.S. tax increases and government spending cuts that take effect at the end of 2012 unless Congress acts represent hurdles for companies considering whether to take on more staff.

Retail Sales Probably Rose in August: Economy Preview (Bloomberg)
Retail sales probably improved for a second month in August as consumers overcame a lack of jobs and stagnant wages, economists said before reports this week. A 0.7 percent increase in purchases would follow a 0.8 percent July advance, according to the median forecast of 66 economists surveyed by Bloomberg News ahead of Commerce Department figures on Sept. 14. Other reports may show inflation accelerated and manufacturing stagnated. Rising food and fuel prices and disappointing gains in payrolls may further damage household finances, making it a challenge for retailers such as Gap Inc. (GPS) and Macy’s Inc. (M) to keep luring customers in the second half of 2012. Widespread labor- market weakness bolsters the case for Federal Reserve policy makers to take additional action to spur growth when they gather this week.
“It’s going to be difficult,” said Gus Faucher, a senior economist at PNC Financial Services Group Inc. in Pittsburgh, whose retail sales forecast matched the median estimate. “Income is basically flat, and at the same time people are spending more for food and energy. If job growth remains flat like this, we are going to see weak growth in consumer spending.” The economy added 96,000 workers last month, less than the 130,000 projected by the median forecast of economists surveyed by Bloomberg, figures from the Labor Department showed last week. The unemployment rate fell to 8.1 percent after 368,000 Americans left the workforce. More than 12.5 million Americans remain unemployed.

FedEx, UPS Win Approval in China to Add Courier Service (Bloomberg)
FedEx Corp. (FDX) and United Parcel Service Inc. won licenses to start domestic courier businesses in some Chinese cities, as they push to expand in the world’s most populous nation. FedEx, the world’s biggest cargo airline, can begin service in eight cities, while Atlanta-based UPS’s license is for five, according to the companies. The businesses don’t include letter delivery. They will compete in a local courier business dominated by state-owned China Postal Express & Logistics Co., which has about 30 percent of the market. The licenses will help Memphis, Tennessee-based FedEx and UPS benefit from rising demand driven by online shopping. The approval “sets the platform for eventual consolidation and market-share gain opportunity,” said Nate Brochmann, an analyst at William Blair & Co. “We’re still in the very early innings in terms of the domestic Chinese opportunity. For the most part it doesn’t change the competitive landscape there.”
The licenses let both companies serve Shanghai, Guangzhou, Shenzhen and Tianjin, according to spokesmen for FedEx and UPS. (UPS) In addition, FedEx was approved for Hangzhou, Dalian, Zhengzhou and Chengdu, while UPS can also operate in Xian. The approval is a starting point for long-term growth in China and will help the companies improve network efficiency, said Brochmann, who is based in Chicago and rates the shares of FedEx and UPS outperform. UPS and FedEx will be able to handle deliveries under the licenses “from end to end” instead of using a local partner, he said.

White House Pushes Refinancing Expansion Before Election (Bloomberg)
The White House is urging the U.S. Senate to vote as soon as this week on an expansion of a government mortgage-refinancing program, a move that could showcase President Barack Obama’s support for policies aiding homeowners before the Nov. 6 presidential election. Democratic leaders are considering adding the measure expanding the Home Affordable Refinancing Program to their agenda for the two-week Senate session that begins today, according to Senator Barbara Boxer of California and Senator Robert Menendez of New Jersey, who wrote the bill. “We are talking about a situation where we have historically low rates, we don’t know what the future holds, and we can’t afford to waste a lot of time,” Boxer said today during a conference call with reporters. Boxer and Menendez today introduced a revised version of the measure with changes designed to draw the support of Republicans and the industry.
Win or lose, a vote on the bill could help the president. If enough Republicans sign on, the vote could show momentum for his efforts to help the 11.3 million borrowers who owe more than their homes are worth. If Republicans vote against the measure, Democrats can paint them as unsympathetic to homeowners, said Jaret Seiberg, senior policy analyst at Guggenheim Securities’ Washington Research Group.

Bernanke Options to Boost Growth Include Open-Ended QE (Bloomberg)
Federal Reserve Chairman Ben S. Bernanke, who last month defended his unorthodox monetary policies, has a new tool at hand should he seek one to a revive a flagging economy and labor market: open-ended bond buying. Barclays Plc forecasts the Federal Open Market Committee this week will announce monthly purchases of $50 billion to cut the jobless rate while holding inflation at 2 percent. Economists at Goldman Sachs Group Inc. (GS) and BNP Paribas, responding to last week’s report of slowing job growth, also say they expect an announcement of an open-ended plan on Sept. 13 after a two-day FOMC meeting. The Fed’s practice of specifying an amount and an end-date for purchases has resulted in abrupt withdrawals of stimulus that later was renewed after the central bank failed to reach its goals. By contrast, an open-ended program would tie purchases to a sustained improvement in the economy, said Michael Gapen, senior U.S. economist at Barclays and a former member of the Fed Board’s Division of Monetary Affairs.
“As a Fed chairman, 2 percent growth isn’t doing it for you, 8 percent unemployment isn’t doing it for you -- they need a faster acceleration,” said Gapen, who is based in New York. “So, the decision is, ‘OK, let’s hit the pedal.”’ Three Fed presidents have voiced support for an open-ended approach: San Francisco’s John Williams, Boston’s Eric Rosengren and Chicago’s Charles Evans. James Bullard of St. Louis said that while he backs the strategy, he wants to see more economic data before taking action.

U.S. job growth cools, posing challenge for Obama, Fed (Reuters)
U.S. jobs growth slowed sharply in August, dealing a blow to President Barack Obama as he seeks re-election and setting the stage for the Federal Reserve to pump additional money into the sluggish economy next week.

China Fuel Prices Rise Second Time in Month as Oil Gains (Bloomberg)
China, the world’s second-biggest oil consumer, increased gasoline and diesel prices for the second time in about a month as rising crude costs threaten to curb profits at the nation’s largest oil refiners. The maximum at which gasoline can be sold to motorists rose by 550 yuan ($87) a metric ton and diesel by 540 yuan today, the National Development and Reform Commission said in a statement on its website yesterday. The pump price of 90-RON, China III gasoline in Beijing will increase 5.8 percent to 10,040 yuan a ton, or $4.53 a U.S. gallon, according to Bloomberg calculations from NDRC data. The China III specification is similar to the Euro III fuel standard.
The increase may help boost profits margins at China Petroleum & Chemical Corp. (600028) and PetroChina Co. (857), the nation’s biggest oil processors. Sinopec, as China Petroleum is known, posted its lowest half-yearly profit since 2008 amid losses at its refining unit because of state-controlled fuel prices. PetroChina’s net income in the period slid 6 percent decline even as its average crude selling price increased 6.3 percent. “The fuel prices are adjusted according to the latest developments in the international oil market,” the NDRC said in the statement yesterday. “Crude prices gained in the past month due to better U.S. economic indicators, continuing uncertainty in the Middle East and expectation on more stimulus policies from the U.S. and Europe.”

Weak China trade data raises Beijing spending stakes (Reuters)
Weak Chinese trade data on Monday underlined the likelihood of more Beijing-backed spending to deal with the damage done to the domestic economy by firms cutting production, inventories and imports in the face of anaemic global demand.

Japan Cost-Cutting Leaves Compensation Nearing Crisis Low (Bloomberg)
Cost-cutting by Japanese companies is dragging on wages, resulting in weaker consumer demand and a stronger case for monetary easing to counter deflation. Nationwide compensation fell to 243.5 trillion yen ($3.1 trillion) in the second quarter, according to a government report in Tokyo yesterday. The number, which is seasonally adjusted, was only 0.7 percent above the level in the final quarter of 2009, which was the lowest since 1991. Japanese companies targeting cost reductions span Tokyo Electric Power Co. (9501), the operator of the nuclear plant at the center of last year’s disaster, and exporters Panasonic Corp. and Sharp Corp. The risk for the economy is a prolonging of the deflation that has plagued the nation since an asset bubble burst in the 1990s, and weakness in consumption that may be exacerbated by a sales-tax increase in April 2014.
“As long as wage deflation continues, there will be no doubt that the Bank of Japan will have to continue monetary easing,” said Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management Co. in Tokyo. “There won’t be an end.” Second-quarter economic growth was yesterday revised down to an annualized 0.7 percent from 1.4 percent, fueling concern a contraction is possible in the three months ending September. The Nikkei 225 Stock Average (NKY) was little changed after surging 2.2 percent the previous trading day on the outlook for European Central Bank bond purchases and global stimulus.

Euro Crisis Faces Tests in German Court, Greek Infighting (Bloomberg)
A German high court decision on bailout funding and Greek coalition infighting this week threaten to derail the European Central Bank’s bid to wrest control over the euro area’s three-year-old crisis. Germany’s Federal Constitutional Court in Karlsruhe will decide whether to suspend the 500 billion-euro ($639 billion) European Stability Mechanism on Sept. 12. In Athens, Prime Minister Antonis Samaras’s governing partners balked at budget cuts demanded by the country’s so-called troika of creditors. In a week of activity that may determine the course of the crisis, the court’s decision comes on the same day as Dutch voters decide whether to back parties questioning an expansion of European powers and as the European Commission issues a proposal for an integrated banking system.
“The ECB is saying I’m here to support you but I can only build a bridge for you,” Mohamed El-Erian, chief executive officer and co-chief investment officer of Pacific Investment Management Co., said in a Sept. 7 Bloomberg Television interview. “You have to do your job as well.” ECB President Mario Draghi’s bond-purchase plan sent Spanish 10-year yields down the most in a week since the euro’s inception and prompted a euro rally of almost 2 percent to the highest level since May. Spain’s 10-year yield extended its slide, dropping 5 basis points to 5.58 percent as of 11:55 a.m. in Madrid. The euro slipped 0.3 percent to $1.2780.

French Sentiment, Factory Output Rise, Point to Rebound: Economy (Bloomberg)
French business confidence climbed for the first time this year last month and factory output unexpectedly increased in July, suggesting the euro region’s second-largest economy may regain some strength. Sentiment among manufacturing executives rose to 93 from 90 in July, the Bank of France said today. Industrial production increased 0.2 percent in July from the previous month, when it stalled, a separate release showed. Economists in a Bloomberg News forecast had forecast a decline of 0.5 percent, according to the median of 23 estimates. The increases are among the first signs of a possible recovery in France, where President Francois Hollande said late yesterday that growth will almost grind to a halt this year and be less than 1 percent in 2013. With unemployment at a 13-year high, Hollande said he wants to accelerate labor market reform such by cutting payroll taxes while giving himself two years to fix the nation’s economy.
“The numbers are going in the right direction but their absolute level remains very low,” said Dominique Barbet, an economist at BNP Paribas SA in Paris. “There’s no recession but no growth either.” The Stoxx Europe 600 Index (SXXP) fell 0.2 percent at 12:57 p.m. in Paris, following its biggest weekly gain in three months. Futures on the Standard & Poor’s 500 Index lost 0.2 percent. The euro traded at $1.2784, down 0.3 percent on the day.

Central Bankers Meet in Basel as King Leads Libor Talks (Bloomberg)
Bank of England Governor Mervyn King said global central bankers agreed to set up an inquiry into Libor after confidence collapsed in the benchmark rate for more than $500 trillion of securities. The announcement follows a meeting yesterday of central bank governors led by King in his role as chairman of the Economic Consultative Committee at the BIS in Basel, Switzerland. The inquiry will be led by “senior officials,” and comes as Financial Services Authority Managing Director Martin Wheatley conducts a separate investigation into how the London interbank offered rate is set. The probe will “consult with the market in order to provide input into the wider official debate coordinated by the Financial Stability Board,” King said in an e-mailed statement today. “The BIS governors look forward with great interest to the recommendations of the Wheatley Libor review, and to the reports of other official groups examining reference rates used in financial markets.”
King put Libor on the agenda after Barclays Plc (BARC) was fined 290 million pounds ($464 million) for its role in manipulating the rate, which triggered the resignations of its chairman, chief executive officer and chief operating officer. The Bank of England became embroiled in the scandal, and lawmakers criticized it last month for “naivety” in its handling of questions about the rate as far back as 2007. “The central banks have somehow got to get moral integrity back in the financial system, and King will feel this himself,” said Marcus Miller, a professor of economics at the University of Warwick, England. “If you can’t trust London to fix the rate, what’s the banking system all about?”

Euro Holds Drops on Crisis Concern Before French Payrolls (Bloomberg)
The euro maintained losses versus the dollar from yesterday amid concern the sovereign debt crisis is constraining growth in the region. The shared currency remained weaker against the yen before reports this week forecast to show French payrolls declined and European industrial production contracted. Greek politicians will meet for a second time tomorrow amid an impasse on spending cuts required to receive the next tranche of bailout funds. Demand for the dollar was limited before the policy setting Federal Open Market Committee starts its two-day meeting tomorrow. “We’re bearish on the euro” in the six-month period, said Imre Speizer, a strategist in Auckland at Westpac Banking Corp. (WBC), Australia’s second-largest lender. “We see the risks to the euro-zone economies to the downside.”
The 17-nation euro traded at $1.2764 as of 8:32 a.m. in Tokyo from yesterday when it declined 0.5 percent to $1.2758. It was little changed at 99.86 yen from yesterday, when it fell 0.4 percent. The dollar slid 0.1 percent to 78.24 yen. A final reading on French non-farm payrolls will probably confirm a 0.1 percent decline in the second-quarter from the previous three-month period, according to the median estimate of economists surveyed by Bloomberg News before the national statistics office Insee releases its figures today. Economists in a separate Bloomberg poll estimate euro-area industrial production declined 3.3 percent in July from a year earlier. The European Union’s statistic office in Luxembourg will report data tomorrow.

20120911 0929 Global Commodities Related News.

Tropical Storm Leslie May Mean Heavy Rain in Newfoundland (Bloomberg)
Tropical Storm Leslie gained strength as it sped toward Newfoundland, where it may bring flooding rains and a storm surge up Placentia Bay if it arrives at high tide, according to Canadian and U.S. forecasters. From 4 to 6 inches (10 to 15 centimeters) of rain are expected to fall when the storm passes the island tomorrow. If it picks up speed and arrives at 6 a.m. local time, a “hazardous” surge may sweep up the bay, according to the statement by the agency in Dartmouth, Nova Scotia. The storm is currently expected to strike about 9 a.m. Korea National Oil Corp.’s 115,000-barrel-a-day North Atlantic Refinery is located at the head of the bay in Come By Chance, Newfoundland. “Torrential rainfall impacts from this storm include the possibility of street flooding, property erosion and road washouts,” the agency said. “Wind impacts include the possibility of some tree damage over eastern Newfoundland.”
Hurricane Igor raked the area in September 2010, washing out roads, isolating cities and towns and killing at least one person there. Leslie, the 12th named storm of the 2012 Atlantic season, was 550 miles (885 kilometers) southwest of Cape Race, Newfoundland, as of 5 p.m. East Coast time with top winds of 70 miles per hour, up from 60 mph, according to the U.S. National Hurricane Center in Miami. The system was moving north-northeast at 35 mph, the center said.

Hedge Funds Lifted Wagers to 16-Month High Before Rally (Bloomberg)
Hedge funds raised bullish commodity bets to the highest in 16 months before speculation that policy makers in the U.S., China and Europe will revive global growth pushed prices higher for a sixth week. Money managers increased their net-long positions across 18 U.S. futures and options by 2.3 percent to 1.33 million contracts in the week ended Sept. 4, the highest since May 3, 2011, U.S. Commodity Futures Trading Commission data show. Wagers on a silver rally climbed for a sixth week and to the highest since Feb. 28, while those for cocoa jumped 57 percent to the most since May 2010.
U.S. unemployment stayed above 8 percent for a 43rd month in August, and the stagnating labor market means the Federal Reserve will move closer to adding fresh stimulus measures, according to Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co. European Central Bank President Mario Draghi announced a bond-buying program Sept. 6 and China’s government approved plans for 1,254 miles of roads, subway projects in 18 cities and other infrastructure projects. “The European fears have calmed to an extent, and China may see a bottoming over the next two quarters,” said James Paulsen, the Minneapolis-based chief investment strategist at Wells Capital Management, which oversees about $325 billion. “Commodities have probably turned a corner, and optimism about easing in the U.S. is putting a bid under prices.”

DTN Closing Grain Comments 09/10 14:32 Grains Stumble to Begin Week (CME)
Selling interest slowly picked up throughout the day leading to sharp losses across the grain complex. Corn breached key support, setting the stage for increased long-liquidation this week.

Pro Farmer: After the Bell Wheat Recap (CME)
Wheat ventured into positive territory at times today, but such moves were short-lived. Futures at all three locations ended at or near their daily lows with losses in the teens for Chicago and Kansas City wheat; Minneapolis wheat ended 20-plus cents lower in most contracts. Traders in the wheat market focused on minimizing risk ahead of what is expected to be a slightly negative carryover adjustment by USDA Wednesday.

Wheat Market Recap Report (CME)
December Wheat finished down 15 1/4 at 889 3/4, 27 3/4 off the high and 2 3/4 up from the low. March Wheat closed down 14 at 901 1/2. This was 2 3/4 up from the low and 25 1/2 off the high.
December Chicago wheat traded sharply lower into the close and Kansas City and Minneapolis wheat followed. The lower trade was linked to weakness in the corn market and profit taking following gains seen last week. Unfavorable weather in Australia provided a positive tilt to the wheat market early in the session but buying interest became exhausted and wheat traded lower the remainder of the day. Forecasts suggest a drier pattern the next two weeks which is a key time period in the growth stage of their wheat crop. The Australian government agency ABARES will release their September production estimate tonight and most in the trade expect a revision lower from their current forecast of 24.1 million tonnes vs. the current USDA estimate of 26 million tonnes. Export inspections for the week ending September 6th were pegged at 19.6 million bushels which was slightly below trade estimates of 23 million bushels. The current inspection pace is 23% of the USDA forecast for 2012/13 and 24 million bushels are needed each week to reach the USDA forecast. The US Dollar traded into positive territory late in the session which may have added to the negative tone. December Oats closed down 4 at 386 1/2. This was 3 1/2 up from the low and 4 1/2 off the high.

Pro Farmer: After the Bell Corn Recap (CME)
Corn futures finished with losses in the 14- to 16-cent range in the September through July contracts. Far-deferred futures posted lesser declines. Pressure on corn futures built around mid-morning as funds led a round of long liquidation. With USDA's September crop reports out Wednesday and the Fed monetary policy meeting ending Thursday, traders opted to lighten their long exposure. For the day, funds were sellers of an estimated 8,000 contracts (40 million bu.) of corn.

Corn Market Recap for 9/10/2012 (CME)
December Corn finished down 16 1/4 at 783 1/4, 23 1/4 off the high and 2 1/4 up from the low. March Corn closed down 15 1/4 at 787 1/4. This was 2 3/4 up from the low and 21 3/4 off the high. December corn traded sharply lower into the close and touched a 6 week low on weakness linked to technical selling and liquidation. Corn led the grain complex lower midday as traders took profits ahead of Wednesday's USDA crop report. A return to warmer and drier weather conditions will enable harvest progress to continue at record pace this week which could be a drag on futures and basis gains. Weather conditions in South America are being watched closely as planting attempts to begin; however the dry conditions have delayed any such progress in areas of Northern Brazil. Traders expect Wednesday's USDA report to show a yield near 120 bushels per acre with production near 10.4 billion bushels, down about 400 million bushels from last month. Export inspections for the week ending September 6th were pegged at 9.8 million bushels which was below trade estimates of 13-17 million bushels. Inspections needed each week to meet the USDA forecast for the 2012/13 crop year is 25.10 million bushels. The US Dollar traded slightly higher for most of the day which added marginal resistance to price gains. November Rice finished down 0.185 at 14.77, 0.09 off the high and equal to the low.

Algeria cuts grain harvest forecast – minister (Reuters)
Algeria expects its grain harvest for this year to be between 5.2 and 5.4 million tonnes, Agriculture Minister Rachid Benaissa said on Sunday, cutting a previous forecast of 5.8 million tonnes.

GRAINS: Chicago soybeans edged lower falling for five out of six sessions on hopes that late season rains in the United States would help salvage some of an oilseed crop battered by devastating drought across the grain belt. Wheat rose for a third straight session on expectations Russia, the world's fourth largest exporter, would soon announce export curbs and as adverse weather hit crops in Australia, the No. 2 supplier. (Reuters)

SOFTS: ICE raw sugar and coffee futures rose in early trade with both markets rebounding from recent weakness although ample supplies looks likely to cap advances.Cocoa futures were lower, slipping back from last week's ten-month peak. (Reuters)

India 12/13 sugar output seen at 24 mln tonnes-trade body (Reuters)
India's sugar output in the next season starting October is expected to drop 4 percent from a previous forecast due to a  drought, a leading trade body said on Monday, but analysts still see some exportable surplus.

China's August oil demand dips to 22-mth low
BEIJING, Sept 10 (Reuters) - Implied oil demand in China, the world's second-largest oil user, dropped to its lowest since October 2010, Reuters calculations based on government data showed, as industrial activity in the world's No.2 economy slowed.
China consumed roughly 8.92 million barrels of oil per day, 0.8 percent lower than a year earlier and 3.7 percent, or 340,000 bpd, below the July rate, figures showed, extending a weak trend started in April when demand fell for the first time in over three years.  

China to raise fuel prices 6-6.5 pct -industry consultancy
BEIJING, Sept 10 (Reuters) - China will raise retail prices of gasoline and diesel by 6 percent to 6.5 percent from Tuesday to track climbing crude prices, an industry website reported on Monday, a move that could help pare refining losses at oil firms.
The expected price hike, if confirmed by the government, would be the second in about a month and the fourth time this year. The increase would bring China's fuel prices to a touch below an all-time high reached in late March.

OIL-Brent climbs towards $115 despite soft China demand
LONDON, Sept 10 (Reuters) - Brent crude oil climbed towards $115 per barrel, buoyed by expectations of economic stimulus measures from the United States, despite worse-than-expected Chinese trade data.
"The market is clearly betting on a third round of quantitative easing from the United States," said Tamas Varga, analyst at brokers PvM Oil Associates in London.

Oil Drops From Three-Week High on U.S. Fed Meeting, Saudi Arabia (Bloomberg)
Oil dropped from the highest level in almost three weeks in New York as investors waited to see if U.S. policy makers will add stimulus to the economy and Saudi Arabia said rising prices are unjustified. Futures fell as much as 0.4 percent, declining for the first time in five days. Global supply, demand and inventories of crude don’t justify the current increase in prices, Saudi Arabian Oil Minister Ali al-Naimi said yesterday, according to the nation’s official press agency. The Federal Open Market Committee starts a two-day policy meeting tomorrow amid slowing jobs growth in the U.S., the world’s biggest oil user. Crude for October delivery decreased as much as 34 cents to $96.20 a barrel in electronic trading on the New York Mercantile Exchange and was at $96.28 at 9:42 a.m. Sydney time. The contract yesterday rose 12 cents to $96.54, the highest close since Aug. 22. Prices are 2.6 percent lower this year.
Brent oil for October settlement climbed 56 cents, or 0.5 percent, to $114.81 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark grade’s premium to West Texas Intermediate closed at $18.27. Brent, a benchmark grade for more than half of the world’s oil, has risen 29 percent since this year’s lowest close on June 21, as a European Union embargo on crude purchases from Iran took full effect on July 1. The price isn’t supported by fundamentals and the market is well balanced, al-Naimi said yesterday, according to the official Saudi Press Agency. The kingdom is the world’s largest crude exporter. The U.S. added 96,000 workers in August compared with 141,000 in July, Labor Department figures showed Sept. 7. The report boosted speculation that the Fed will implement a third round of asset purchases, or quantitative easing, to bolster the economy.

Iron Ore Climbs Most in Four Years on Subways-to-Railways Spend (Bloomberg)
Iron ore jumped the most in almost four years and derivatives rebounded from a collapse as Chinese steel mills accelerated purchases following government plans to boost spending on subways, railroads and other projects. The commodity at the Chinese port of Tianjin rose 6.7 percent to $95 a metric ton, the largest one-day gain since December 2008, according to data from The Steel Index Ltd. Swaps to bet on, or hedge, the price in October exceeded $100 a ton for the first time in three weeks, according to Clarkson Securities Ltd., a unit of the world’s largest shipbroker. China said last week it will increase spending on railways and subways and also backed construction of 1,254 miles of roads, nine sewage-treatment plants, five port and warehouse projects, and two waterway improvements. Traders are speculating the developments will fuel demand for iron ore from the world’s largest importer of the steelmaking raw material, Alex Gray, chief executive officer of Clarkson Securities, said by phone.
“China has shown its hand,” Richard Lee, an iron ore and dry-bulk trader at Barclays Plc in London, said by e-mail today. “It intends to add a number of new projects and mills are now short, and therefore they are restocking.” October swaps traded at between $106 a ton and $107 a ton at about 2:00 p.m. in London compared with $97 a ton on Sept. 7, according to Clarkson data. The last time they exceeded $100 was Aug. 20, according to Gray. Shipping costs for the raw material, the largest dry-bulk cargo transported by sea, advanced for the first day in three. Rates for Capesize vessels jumped 1 percent to $3,485 a day, according to the Baltic Exchange in London, a publisher of freight rates on more than 50 maritime routes.

20120911 0929 Soy Oil & Palm Oil Related News.

Soybean Reserves Smallest in Four Decades After Drought (Bloomberg)
The smallest U.S. soybean harvest in nine years will leave inventories in the world’s largest exporting nation at the lowest in four decades. U.S. farmers will reap 13 percent less than a year earlier after the worst Midwest drought in 76 years, according to the average of 34 analyst estimates compiled by Bloomberg. Reserves will be the lowest since 1973 by March, estimates INTL FCStone Inc., which handled $75 billion of physical commodities in 2011. Futures will advance 16 percent to an all-time high of $20 a bushel in three months, Goldman Sachs Group Inc. predicts.
Crop prices surged to records this year as drought parched fields across the U.S., South America and Russia. The U.S. Department of Agriculture cut its forecasts the past two months and the Bloomberg survey indicates the agency will do so again tomorrow, leaving Brazil as the top soybean supplier for the first time. Feed costs are rising for meat producers including Tyson Foods Inc. (TSN), the largest in the U.S., and three United Nations agencies said Sept. 4 that swift action is needed to avert a food crisis. “The U.S. will simply run out of soybeans” for exports on March 1, said Doug Jackson, a FCStone vice president in West Des Moines, Iowa, who has been a grain-industry analyst since 1974. “The supply situation is unprecedented. The theoretical maximum South American shipping capacity may fall short, leaving world buyers wanting.”

Billionaires Bet on Palm Oil With GIC, Northstar: Southeast Asia (Bloomberg)
Triputra Agro Persada, the palm oil company owned by Indonesian billionaires Theodore Rachmat and Benny Subianto, will increase its planted area by two-thirds by 2015 as it prepares for an initial stock sale. Triputra Agro Persada has been buying plantations since it was set up in 2005 and currently owns about 300,000 hectares (740,000 acres), Chief Executive Officer Arif Rachmat said in an interview in Jakarta Sept. 7. It plans to increase its planted areas to at least 200,000 hectares from more than 120,000 hectares with the help of funding from TPG Capital’s Indonesian partner, Northstar, and Government of Singapore Investment Corp. An initial public offering is planned for in three to five years, Rachmat said. “We will do it at the most optimum time. It’s hard to say where commodity prices will be.”
TPG’s Indonesian partner, Northstar, and the Singapore sovereign wealth fund invested $200 million for a “small minority stake” in Triputra Agro Persada in August and have the option of investing an additional $50 million in the next few months, the 37-year-old son of Theodore Rachmat said. That’s the biggest private-equity investment in Southeast Asia’s largest economy this year, according to data compiled by Bloomberg. The benchmark palm oil price in Malaysia, the second- largest producer, has dropped 7.5 percent this year through Sept. 10 as a slowdown in China and Europe cut consumption. Global demand for the tropical commodity used in everything from candy to lipstick, is set to “grow strongly” because of its increasing use in bio-diesel and electricity production, according to a report by PricewaterhouseCoopers LLP this year.

Pro Farmer: After the Bell Soybean Recap (CME)
Soybean futures saw a choppy day of trade, but weakened into the close to post double-digit losses in the mid to upper teens. The onset of harvest in the U.S. and favorable weather for soybean planting in Brazil provided pressure in the bean market today, although selling was limited as traders are evening positions ahead of Wednesday's key USDA reports.

Soybean Complex Market Recap (CME)
November Soybeans finished down 17 3/4 at 1718 3/4, 25 1/2 off the high and 2 3/4 up from the low. January Soybeans closed down 17 1/2 at 1718 1/4. This was 1 1/2 up from the low and 24 3/4 off the high. December Soymeal closed down 7.5 at 519.4. This was 0.9 up from the low and 9.9 off the high. December Soybean Oil finished down 0.1 at 56.56, 0.5 off the high and 0.34 up from the low. November soybeans traded sharply lower on the day and losses were extended to Soybean oil and soybean meal. Soybean futures saw a boost in early trade on a better than expected export forecast for Malaysian Palm Oil. However, gains were limited after the Malaysian Palm Oil Board estimated a 5.8% increase in August palm oil stocks from the month prior. Chinese August soy imports were reported at 4.42 million tonnes vs. 5.87 in July, which is a 6 month low. While the sharp decline in imports is considered slightly bearish, a pullback was likely expected at some point after reaching a 25 month high in July. Thoughts that the market is expecting a soybean yield near 35.7 bushels per acre and production near 2.66 billion bushels on this week's USDA report which is down about 35 million bushels from last month is supportive to price action. Export inspections for the week ending September 6th were pegged at 12.9 million bushels which was slightly below trade estimates of 13-17 million bushels. Inspections needed each week to meet the current USDA forecast for the 2012/13 crop year is 21.34 million bushels. Inspections offered limited direction to prices today as traders reposition ahead of Wednesday's crop report.

China imported 4.42 mln tonnes of soy in August – Customs (Reuters)
China, the world's largest soy buyer, imported 4.42 million tonnes of soybeans in August, down 24.7 percent from 5.87 million tonnes in July, figures from the General Administration of Customs of China showed.
Imports of vegetable oils in August were 640,000 tonnes, down 12.3 percent from the previous month.

EDIBLES: Malaysian crude palm oil futures inched lower on expectations of rising inventory levels, although losses were limited by a jump in exports that could help ease pressure, eating into high stock levels that have risen above 2 million tonnes. (Reuters)