Tuesday, December 4, 2012

20121204 1809 FCPO EOD Daily Chart Study.


FCPO closed : 2296, changed : -21 points, volume : lower.
Bollinger band reading : downside biased with possible pullback correction.
MACD Histogram : falling lower, seller in control.
Support : 2250, 2230, 2200, 2130 level.
Resistance : 2300, 2350, 2400, 2450, 2490, 2520 level.
Comment :
FCPO closed weaker with lesser volume changed hand. Soy oil price currently trading little lower after overnight advanced higher while crude oil price correcting little lower after yesterday rise.
Price continue to trade weaker as trader projected higher inventory.
Technical chart reading revised to suggesting a downside biased market development with possible pullback correction and MACD indicator having negative crossed down.
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.

20121204 1732 FKLI EOD Daily Chart Study.


FKLI closed : 1603.5 changed : +2.5 points, volume : higher.
Bollinger band reading : correction range bound downside biased.
MACD Histogram : turned upward, buyer testing market.
Support :  1600, 1595, 1590, 1580 level.
Resistance : 1610, 1615, 1623, 1627 level.
Comment :
FKLI closed edge up little higher with better volume traded doing 4 points discount compare to cash market that closed nearly unchanged. Overnight U.S markets closed recorded loss and today Asia markets ended mixed while European markets currently trading slightly higher.
Global market having mixed development as U.S. budget discussion remained unsettle among lawmakers and overnight unexpected slower manufacturing data.
FKLI daily chart reading adjusted to calling a correction range bound down side biased market development testing support and resistance.
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.

20121204 1617 Global Markets & Commodities Related News.

STOCKS: European stocks opened lowered after U.S. budget negotiations to delay growth-curbing austerity measures hit a roadblock and some key regional indexes failed to break above resistance levels. Asian shares slipped after a plunge in U.S. manufacturing activity hit Wall Street stocks on Monday. (Reuters)


FOREX-Euro rises to 6-week high versus dollar
LONDON, Dec 4 (Reuters) - The euro rose to a six-week high against the dollar extending the previous day's rise on positive news on Greece and Spain, with traders reporting real money accounts buying the currency.
The euro  rose to $1.3077, just above the previous day's high of $1.3076 and its highest since Oct. 22, according to trading platform EBS. Traders reported stop loss buy orders above $1.3100.


U.S. manufacturing contracts to weakest in 3 years (Reuters)
U.S. manufacturing unexpectedly contracted in November, falling to its lowest level in over three years in a sign the sector may be struggling to gain traction, according to an industry report released on Monday.

Australia central bank cuts rates to record-matching lows (Reuters)
Australia's central bank cut interest rates a quarter point to a record-matching low on Tuesday, stepping up efforts to safeguard the rich world's most resilient economy from the risk of recession as a mining boom peaks.

GRAINS: U.S. soybeans were largely steady after gaining just over one percent in the previous session as unfavourable weather in major South American producer Argentina raised crop concerns. (Reuters)

New rains sustain floods in Argentina's soy belt (Reuters)
Rains expected to hit Argentina's grains belt this week will sustain the floods that have fanned global supply worries by swamping and blocking access to key soy, corn and wheat areas, local experts said on Monday.

OIL: Brent crude slipped toward $110 per barrel as demand concerns moved into focus after weak manufacturing data from the United States, the world's top oil consumer, while its uncertain fiscal deficit negotiations also kept investors on the edge.  (Reuters)

POLL-US crude, refined product stocks seen higher last week (Reuters)
U.S. commercial crude oil stockpiles likely rose marginally last week while gasoline stockpiles were expected to show larger builds, a preliminary Reuters poll of six analysts showed on Monday.

Vale to scale back investment as global economy bites (Reuters)
Brazil's Vale SA, the world's second-largest mining company, cut estimated 2013 capital spending by 24 percent after a global slowdown and a drop in iron ore prices led the company to rethink expansion.

BASE METALS:London copper fell for the first time in four sessions, pulling away from six-week highs hit in the prior session, as U.S. economic and fiscal worries countered optimism that top copper user China is on the road to recovery.  (Reuters)

PRECIOUS METALS: Gold fell about 1 percent to its lowest in nearly a month on technical selling after prices broke below key support levels, but the dip may lure bargain hunters who expect the gloomy global economy to keep gold buoyant.  (Reuters)


METALS-Copper drops from 6-week high, U.S. woes weigh
SINGAPORE, Dec 4 (Reuters) - London copper fell for the first time in four sessions pulling away from six-week highs hit in the prior session, as U.S. economic and fiscal worries countered optimism that top copper user China is on the road to recovery.
"Copper is expensive from a valuation point of view and China is really just stabilising and gathering a bit of strength," said Dominic Schnider, head of commodity research at UBS Wealth Management.

PRECIOUS-Gold dips 1 pct on stop-loss sales; may flush out buying
SINGAPORE, Dec 4 (Reuters) - Gold fell about 1 percent to its lowest in nearly a month on technical selling after prices broke below key support levels, but the dip may lure bargain hunters who expect the gloomy global economy to keep gold buoyant.
"The break probably will not last long," said a Sydney-based trader. "Funds are happy to buy on dips, and so will the central banks and the Chinese."

20121204 1616 Palm Oil Related News.


VEGOILS-Record stocks drag palm oil futures to new 3-week low
Tue Dec 4, 2012 12:52am EST
* Futures market technically weak -trader
    * Palm oil to revisit low of 2,220 ringgit-technicals
    * November exports to rise on stronger Chinese demand
-analyst

 (Updates prices, adds detail)
    By Anuradha Raghu
    KUALA LUMPUR, Dec 4 (Reuters) - Malaysian palm oil futures
fell to its lowest in more than three weeks on Tuesday as
investors fret over the prospects of another  month of record
stocks in the world's No.2 producer.
    Forward months were trading at a 3 percent discount to the
benchmark February futures contract, signalling oversupply and
keeping investors on edge although seasonally slowing output and
Chinese demand should curb the stock build.
    Record high stocks in Indonesia and Malaysia will see palm
oil futures post their worst annual performance since the
financial crisis in 2008. Palm oil prices have lost nearly 28
percent so far this year also on the deepening euro zone debt
crisis affecting global economic growth.
    "There is plentiful stock around -- that's the reason why
the market is still technically weak. The local front is
bearish," said a trader with a foreign commodities brokerage.
    "Exports are holding quite well, the demand is still strong.
But unless you see a draw down in inventory, the market will be
under pressure," he added.
    The benchmark February contract on the Bursa
Malaysia Derivatives Exchange fell as much as 2,289 ringgit per
tonne, the lowest since Nov. 12, before settling at 2,294
ringgit ($754) per tonne by the midday break.
    Total traded volumes stood at 16,998 lots of 25 tonnes each,
much higher than the usual 12,500 lots.  
    Technicals showed that palm oil would revisit its Nov. 12
low of 2,220 ringgit per tonne, said Reuters market analyst Wang
Tao.
    Malaysian crude palm oil exports are expected to rise in the
next few weeks thanks to stronger demand from China ahead of
Lunar New Year celebrations in February, and stricter import
rules next year.
    "We have assumed crude palm oil exports to increase by 5
percent to 1.85 million tonnes in November as Chinese traders
are expected to stock up," Kenanga Investment Bank analyst Alan
Lim said in a note to clients.
    Kenanga expects inventory levels to "remain close to the
very high level of 2.5 million tonnes" and keep crude palm oil
prices below 2,500 ringgit in the near term.
    Weak manufacturing data from the United States renewed
concerns of slowing demand from the world's biggest oil
consumer, offsetting optimistic factory data issued by China a
day earlier.
     Brent futures slipped below $111 per barrel on Tuesday but
supply worries stemming from simmering tensions in the Middle
East and worsening unrest in Syria helped cushion prices.
    In palm oil's competing markets, U.S. soyoil for December
delivery was almost flat in Asian trade. The most active
May 2013 soybean oil contract on the Dalian Commodity.

20121204 1134 Global Markets & Energy Related News.


GLOBAL MARKETS-Asian shares off 9-month high on weak U.S. data
SINGAPORE, Dec 4 (Reuters) - Asian shares dipped after U.S. manufacturing activity hit a three-year low in November, while the euro hovered near a six-week high on optimism over a planned debt buy back by Greece.
"Investors are cautious about the market's sharp rise in the past few weeks, and as soon as the Nikkei hit the 9,500-mark, trading has slowed down. Investors started taking a wait-and-see mode," said Hiroichi Nishi, general manager at SMBC Nikko Securities in Tokyo.

FOREX-Euro firms against dollar, yen; RBA rate decision awaited
TOKYO, Dec 4 (Reuters) - The euro rose slightly in early Asian trading, moving back towards a six-week high against the dollar and a seven-month high against the yen marked a day earlier on upbeat news from Spain and Greece.
"Therefore the reaction of the Australian dollar to the RBA decision could hinge less on how much the RBA eases and more on whether they signal plans to ease again in the New Year," she said in note to clients.  

U.S. manufacturing contracts to weakest in 3 years
NEW YORK, Dec 3(Reuters) - U.S. manufacturing unexpectedly contracted in November, falling to its lowest level in over three years in a sign the sector may be struggling to gain traction, according to an industry report released on Monday.
The Institute for Supply Management said its index of national factory activity fell to 49.5 in November from 51.7 the month before. The reading was shy of expectations of 51.3, according to a Reuter’s poll of economists. The 50 level in the index is the line between expansion and contraction.

Brent oil falls as weak US data offsets China optimism
NEW YORK, Dec 3 (Reuters) - Brent oil prices turned lower on Monday after data showed U.S. manufacturing activity slowed to a three-year low, offsetting more optimistic figures from China.
"The ISM data took away the momentum, but crude hasn't lost that much ground," said Phil Flynn, analyst at Price Futures Group in Chicago.

POLL- US crude, refined product stocks seen higher last week
Dec 3 (Reuters) -  U.S. commercial crude oil stockpiles likely rose marginally last week while gasoline stockpiles were expected to show larger builds, a preliminary Reuters poll of six analysts showed on Monday.  
The survey ahead of weekly inventory reports from industry group American oleum Institute  and the U.S. Energy Information Administration, forecast that crude stocks would rise by 100,000 barrels on average for the week ended Nov. 30.  

Nigeria oil savings more than double, risks remain
ABUJA, Dec 3 (Reuters) - Cost-cutting has helped restore Nigeria's Excess Crude Account (ECA) to some $9 billion in oil savings, or more than double what it was a year ago, Finance Minister Ngozi Okonjo-Iweala said on Monday.
Okonjo-Iweala was addressing delegates in Abuja at the annual Nigerian Economic Summit, whose themes include reducing the high cost of governance in Africa's top oil producer.

20121204 1132 Malaysia Corporate Related News.


UEM Land inks RM4bn Nusajaya deals
UEM Land Holdings, the property development arm of UEM Group, has inked deals worth about RM4bn with six companies to develop Phase 2 of Nusajaya in Johor. It is understood that UEM Land signed agreements with the companies from Malaysia, Singapore, South Korea and China for various projects over the past week. (BT)

Eversendai raises stake in Technics
Eversendai Corp, a structural steel turnkey and power-plant contractor, has raised its stake in Singapore-listed Technics Oil & Gas to 13.6%, in a bid to strengthen its position in the oil and gas (O&G) sector. Just last Friday, Eversendai said it bought 11.2% stake in Technics for RM62.1m using its initial public offering proceeds. (BT)

Naim on track to meet RM300m property sales target
Naim Holdings Bhd is on track to meet its target of RM300mil in property sales this year. Corporate marketing/investor relations senior director Ricky Kho said robust demand particularly in residential homes had helped the group's sales to hit RM287mil year to date. Last year Naim sold 660 property units valued at RM218.8mil and, in the first 11 months of this year, it achieved sales of 620 units of higher value properties in Miri, Kuching and Samarahan. (Star)

AMMB completes MBF Cards purchase
AMMB Holdings has completed the acquisition of MBF Cards for RM623.4m from MBF Holdings, according to a media release yesterday by AMMB. AmBank Group chairman and shareholder Tan Sri Azman Hashim said that the acquisition will enhance the group’s profile of its merchant acquiring and card issuance businesses with a greatly enlarged merchant network. With more than 45,000 merchants-in-force, the deal will make AMMB the top three merchant acquirer in Malaysia. (Malaysian Reserve)

Genting Plantation working with DuPont to increase oil palm yield
Genting Plantation, via its unit ACGT, is collaborating with DuPont, a global innovation and science company, to increase oil palm yield and unlock the natural potentials of the crop. ACGT chief executive officer Derrik Khoo Sin Huat said the collaboration would leverage on DuPont’s suite of scientific crop yield innovations and enable the company to introduce market-assisted selection to identify high-performance oil palm breeds.  (Malaysian Reserve)

Good rating for Media Prima’s notes
RAM Rating Services has assigned Media Prima’s proposed RM500m commercial paper’s/medium-term notes a preliminary long-term rating of AA2 and a short-term rating of P1 with a stable outlook. Reflecting on Media Prima’s strong market position in the media industry and its solid financial profile, the rating agency’s P1 rating of the company’s RM180m commercial papers programme (2007/2014) has been re-affirmed.  (Malaysian Reserve)

Bintai Kinden unit secures job worth RM133.2m in Sabah
Bintai Kinden Corporation’s unit has secured a contract worth RM133.2m to perform mechanical and electrical (M&E) works for a mixed development project in Kota Kinabalu, Sabah. In a Bursa filing yesterday, Bintai Kinden said its unit Kejuruteraan Bintai Kindenko has received the letter of award for the project from Pacific Sanctuary Holdings, appointing it as the main contractor for the M&E works. (Financial Daily)

20121204 1132 Global Economy Related News.


Indonesia: November inflation eases more than economists forecast
Indonesia’s inflation slowed more than economists estimated in November, giving the central bank room to support growth as exports slump. Consumer prices climbed 4.32% from a year earlier last month, after a previously reported 4.61% gain in October, the statistics bureau said in Jakarta yesterday. The median of 20 estimates in a Bloomberg News survey was for a 4.57% increase. Exports fell 7.6% in October from a year earlier, after a 9.4% drop the previous month. Indonesia has kept its benchmark interest rate unchanged at a record-low 5.75% for nine meetings, refraining from joining neighbors from Thailand to the Philippines in extending monetary easing as price gains held above 4% since March. (Bloomberg)

EU: Greece offers 10 billion-euro debt buyback to unlock aid
Greece offered EUR10bn (USD13bn) to buy back bonds issued earlier this year as the bailed-out nation attempts to cut a debt load that may threaten future international aid. Greek bonds rallied after the so-called modified Dutch auction  was announced today by the Athens-based Public Debt Management Agency. The prices offered for bonds maturing from 2023 to 2042 averaged 33.1% of face value, based on information in a statement from the debt agency today, higher than euro-area finance ministers indicated would be paid. Success is crucial to releasing aid that’s been frozen since June. (Bloomberg)

US: Fed’s Rosengren sees ‘strong case’ for more asset buying
Federal Reserve Bank of Boston President Eric Rosengren said he sees a “strong case” for the central bank to buy bonds at the current monthly pace of USD85bn after its Operation Twist program expires. “Given the tepid economic recovery, high unemployment, and subdued inflation  – and the uncertainty around fiscal policy  – I believe an accommodative monetary policy is quite appropriate,” Rosengren said. Policy makers, who next meet 11-12 Dec, are considering whether to step up record accommodation to offset the scheduled expiration this month of Operation Twist, a program swapping short-term Treasuries with longer-term debt. (Bloomberg)

US: Manufacturing unexpectedly shrank as orders slowed  
Manufacturing unexpectedly contracted in November for the fourth month in the last six as factory managers grew more concerned about the potential economic toll stemming from the so-called fiscal cliff. The Institute for Supply Management’s factory index fell to 49.5, the lowest since July 2009, from 51.7 in October. The median forecast in a Bloomberg survey called for 51.4. Fifty marks the dividing line between expansion and contraction. Construction spending in October jumped by the most in five months, another report showed. (Bloomberg)

20121204 1128 Global Markets Related News.


Asia FX By Cornelius Luca - Mon 03 Dec 2012 18:04:55 CT (CME/www.lucafxta.com)
The appetite for risk improved selectively on Monday in part due to the firm Chinese economic data. The ubiquitous "fiscal cliff" negotiations remain the main driver of the markets and will continue to generate short-term swings. The political dancing continues with big words but no real work. The European currencies and yen ended higher, while the commodity currencies made little progress.  The US stock indexes fell. The short-term outlook for the foreign currencies is sideways. The medium-term outlook for most of the foreign currencies is sideways. The LGR short-term model is short on all European currencies. Good luck!

Overnight
US: The ISM's purchasing managers index fell to 49.5 in November from 51.7 in October.
US: Construction spending rose 1.4% in October from 0.6% in September.

Today's economic calendar
UK: BRC retail sales monitor - all for November
Australia: Building permits for October
Australia: Current account balance for the third quarter
Australia: The RBA interest rate decision (Dec 4)

Asian Stocks Fluctuate on China Data, U.S. Budget Concern (Bloomberg)
Asian stocks swung between gains and losses as Chinese manufacturing data added to signs of recovery while U.S. lawmakers continue to debate over a budget compromise to avert a so-called fiscal cliff. Metallurgical Corp. of China, an engineering contractor and equipment manufacturer, climbed 4.4 percent in Hong Kong. Shimizu Corp., a construction company, advanced 4 percent in Tokyo on speculation a deadly highway-tunnel collapse will reduce opposition to more public works spending. Li & Fung Ltd., a supplier of toys and clothing to retailers including Wal-Mart Stores Inc., slipped 3 percent. The MSCI Asia Pacific Index was little changed at 124.62 as of 4:28 p.m. in Tokyo, erasing gains of as much as 0.5 percent. The measure advanced 14 percent through Nov. 30 from this year’s low on June 4 as central banks added stimulus to spur growth and data showed China’s slowdown may be ending.
“While there are signs China’s economy might be bottoming, we don’t expect growth to go back to double-digit rates,” said Daphne Roth, Singapore-based head of Asia equity research at ABN Amro Private Bank, which oversees about $207 billion. “We expect no big stimulus or monetary easing from China. The U.S. fiscal cliff is a concern even though we think they’ll eventually come up with some kind compromise.” U.S. lawmakers are debating the budget to help avert the so-called fiscal cliff. Failure to come up with a budget deal would trigger more than $600 billion of automatic tax increases and spending cuts next year. The Nikkei 225 Stock Average (NKY) gained 0.1 percent in Tokyo and South Korea’s Kospi Index added 0.4 percent. Australia’s S&P/ASX 200 Index climbed 0.6 percent. Hong Kong’s Hang Seng Index dropped 0.9 percent, while China’s Shanghai Composite Index slid 1 percent.

All Markets Gain for Second Time in 2012 on Recovery (Bloomberg)
For the second time this year, stocks, bonds, commodities and the dollar posted monthly gains amid optimism central bank stimulus programs are bolstering growth in the world’s biggest economies. Raw materials led, with the Standard & Poor’s GSCI Total Return Index (SXXP) rising 1.5 percent. The MSCI All-Country World Index of equities added 1.3 percent, including dividends. Bonds of all types returned 0.53 percent on average for a fifth monthly advance, the longest run of gains since 2010, according to Bank of America Merrill Lynch’s Global Broad Market Index. Intercontinental Exchange Inc.’s Dollar Index, which tracks the currency against those of six major U.S. trading partners, advanced 0.29 percent, its first increase since July.
The world economy has recovered to its strongest level in 18 months as China’s stimulus measures bolster growth and the U.S. seeks to avoid the so-called fiscal cliff, a Bloomberg Global Poll of investors showed Nov. 29. The Federal Reserve has pumped more than $2.3 trillion into the financial system, while the Bank of Japan (8301) is providing more than $800 billion. The European Central Bank has made about $1 trillion available in three-year loans to banks. “With so much monetary stimulus around the world, we’ve taken the brakes off the global economy,” Bruce McCain, chief investment strategist at the private-banking unit of KeyCorp in Cleveland, said in a Nov. 27 phone interview. His firm oversees $20 billion. “It should mean improved growth into next year. Officials in Europe and in the U.S. seem to realize that we’re on the precipice of some pretty negative outcomes if they don’t do something to find better solutions.”

Asian Stocks Fluctuate on China Data, U.S. Budget Concern (Bloomberg)
Asian stocks swung between gains and losses as Chinese manufacturing data added to signs of recovery while U.S. lawmakers continue to debate over a budget compromise to avert a so-called fiscal cliff. Metallurgical Corp. of China, an engineering contractor and equipment manufacturer, climbed 4.4 percent in Hong Kong. Shimizu Corp., a construction company, advanced 4 percent in Tokyo on speculation a deadly highway-tunnel collapse will reduce opposition to more public works spending. Li & Fung Ltd., a supplier of toys and clothing to retailers including Wal-Mart Stores Inc., slipped 3 percent. The MSCI Asia Pacific Index was little changed at 124.62 as of 4:28 p.m. in Tokyo, erasing gains of as much as 0.5 percent. The measure advanced 14 percent through Nov. 30 from this year’s low on June 4 as central banks added stimulus to spur growth and data showed China’s slowdown may be ending.
“While there are signs China’s economy might be bottoming, we don’t expect growth to go back to double-digit rates,” said Daphne Roth, Singapore-based head of Asia equity research at ABN Amro Private Bank, which oversees about $207 billion. “We expect no big stimulus or monetary easing from China. The U.S. fiscal cliff is a concern even though we think they’ll eventually come up with some kind compromise.” U.S. lawmakers are debating the budget to help avert the so-called fiscal cliff. Failure to come up with a budget deal would trigger more than $600 billion of automatic tax increases and spending cuts next year. The Nikkei 225 Stock Average (NKY) gained 0.1 percent in Tokyo and South Korea’s Kospi Index added 0.4 percent. Australia’s S&P/ASX 200 Index climbed 0.6 percent. Hong Kong’s Hang Seng Index dropped 0.9 percent, while China’s Shanghai Composite Index slid 1 percent.

China’s Stocks Drop to Lowest Since 2009, Led by Liquor Shares (Bloomberg)
China’s stocks fell, with the benchmark index declining for the sixth time in seven days, as liquor companies extended yesterday’s rout on speculation demand will weaken. Kweichow Moutai Co. and Wuliangye Yibin Co., the two biggest producers of baijiu liquor, slumped more than 2 percent, leading a gauge of consumer staples producers to the steepest loss among 10 industry groups in the CSI 300 (SHSZ300) Index. Ping An Insurance (Group) Co. paced gains for insurers after Haitong Securities Co. recommended the industry for next year. The Shanghai Composite Index (SHCOMP) slipped 0.3 percent to 1,954.04 at 10:08 a.m. local time, heading for the lowest level since Jan. 16, 2009. The CSI 300 lost 0.1 percent to 2,105.89 while the Hang Seng China Enterprises Index (HSCEI) of Chinese companies traded in Hong Kong fell 0.2 percent. The Bloomberg China-US 55 Index (CH55BN), the measure of the most-traded U.S.-listed Chinese companies, lost 0.9 percent in New York.
“Investors have kind of given up for this year,” Zhang Haidong, analyst at Tebon Securities Co. analyst, said by telephone in Shanghai. “The stock market hasn’t reached a bottom yet. Investors are concerned that demand for high-end products like liquor will suffer.” Trading volumes in the Shanghai Composite were 2.3 percent lower than the 30-day average, according to data compiled by Bloomberg. Thirty-day volatility in the gauge was at 13.7, compared with this year’s average of 17.2. The Shanghai Composite trades at 10.8 times reported earnings, the lowest level since at least 1997, according to data compiled by Bloomberg. The index has fallen 11 percent this year, heading for a third straight year of losses, amid estimates the economy will grow at its slowest pace in a more than a decade this year.

U.S. Stocks Fall on Manufacturing Data Amid Cliff Concern (Bloomberg)
U.S. stocks fell, following a two- week advance for the Standard & Poor’s 500 Index, as an unexpected contraction in manufacturing spurred concern about the potential economic toll from the so-called fiscal cliff. DuPont Co., the most valuable U.S. chemical maker, fell 1.7 percent, leading raw-materials producers to the biggest drop among 10 S&P 500 groups. Dell Inc. (DELL) rallied 4.4 percent after Goldman Sachs Group Inc. recommended buying the shares. The S&P 500 dropped 0.5 percent to 1,409.46 at 4 p.m. in New York. The Dow Jones Industrial Average lost 59.98 points, or 0.5 percent, to 12,965.60. More than 5.6 billion shares traded hands on U.S. exchanges today, or 9.4 percent below the three- month average, according to data compiled by Bloomberg. “The fiscal cliff concerns are actually affecting decision making at the business level,” Andres Garcia-Amaya, New York- based global market strategist at JPMorgan Chase & Co.’s mutual funds unit, which oversee $400 billion in assets, said in a phone interview.  “China is starting to show signs of life. The U.S. was showing signs of life, but we have the geopolitical issue that’s impeding us from moving forward. All in all, that’s just confusing the market.” The Institute for Supply Management’s U.S. factory index fell to 49.5 in November from 51.7 a month earlier, the Tempe, Arizona-based group said today. Economists in a Bloomberg survey projected a reading of 51.4 for November, according to the median of 83 forecasts. The dividing line between expansion and contraction is 50.

Recap Stock Index Market Report (CME)
The December S&P 500 entered the US trading session on a higher track, fueled by encouraging signs out of China's manufacturing sector and a level of improvement on the European debt situation. Reports that Spain had formally requested EU support for its struggling banking sector was seen as a positive. These factors helped the December S&P 500 breakout above the 1420.00 level during the US morning hours. However, sentiment in the market turned sour following US manufacturing data that unexpectedly contacted in November. The weakness seemed to gain downside momentum into the afternoon hours. Most of the S&P sector indices were in negative territory, led by a more than 1.5% drop in material-related shares.

DeMark Sees 48% China Index Rally as Bears Exhausted Below 1,960 (Bloomberg)
The Shanghai Composite Index (SHCOMP) will rally 48 percent within nine months after its decline below 1,960 signaled selling has climaxed, according to Tom DeMark, the creator of indicators to show turning points in securities. The benchmark index for Chinese equities will advance to 2,900 after its decline produced a buy signal on the Sequential and Combo charts, designed to identify market tops and bottoms, said DeMark, who has spent more than 40 years developing market- timing indicators. The Shanghai index fell 1 percent to 1,959.77, the lowest level since January 2009, and is down 11 percent in 2012. “Everyone is negative on SHCOMP index, absolutely everyone,” DeMark wrote in an e-mail, referring to the Chinese benchmark gauge’s ticker symbol. “And now is the perfect environment to make a low and be positive as the last seller, figuratively speaking, has sold.”
China is headed for its slowest economic growth in more than a decade as the central bank tightened monetary policies in 2010 and 2011 to tame inflation. The People’s Bank of China raised its benchmark interest rate five times during the last two years before cutting twice in 2012. The economy is projected to grow 7.7 percent this year, the slowest since 1999, according to median estimate of 49 economists surveyed by Bloomberg.

European Stocks Climb as Chinese Manufacturing Expands (Bloomberg)
European (SXXP) stocks climbed, following their longest stretch of monthly gains in six years, as two measures of Chinese manufacturing increased and Greece offered to spend 10 billion euros ($13 billion) buying back bonds. Cable & Wireless Communications Plc (CWC) rose 1.2 percent after agreeing to sell its Monaco and Islands unit to Bahrain Telecommunications Co. for $680 million. Colruyt SA (COLR) slid 1.9 percent after first-half earnings before interest and taxes missed analysts’ estimates. The Stoxx Europe 600 Index advanced 0.1 percent to 276.13 at the close in London as four stocks rose for every three that fell. The equity benchmark has rallied 18 percent from this year’s low on June 4 as the European Central Bank announced an unlimited bond-buying plan and the Federal Reserve started a third round of asset purchases.
“Greece has made quite a bit of progress,” said Philippe Gijsels, head of fixed-income research at BNP Paribas Fortis in Brussels. “If Greece can manage the buyback and get a new tranche of aid, then the Greece problem will be out of the way until the end of 2013. China is clearly improving and this is helping equities and commodities. We’re in a sweet spot for the next two to three months.” China’s official Purchasing Managers’ Index, a gauge of manufacturing, rose to 50.6 in November, the highest in seven months, the National Bureau of Statistics and China Federation of Logistics and Purchasing said on Dec. 1. A reading above 50 indicates expansion. A separate survey by HSBC Holdings Plc and Markit Economics, which focuses on smaller businesses, today showed that activity increased last month.

Republicans Reprise 2011 Debt-Limit Threat in Cliff Talks (Bloomberg)
Republicans are renewing attempts to use a debt-limit increase to force deeper spending cuts, replicating the 2011 showdown that caused the U.S. to come within days of default and led to a credit-rating downgrade. As in 2011, many Republicans in Congress see the need to raise the $16.4 trillion limit on public debt in early 2013 as leverage to force President Barack Obama to cut entitlement programs such as Medicare and Medicaid. House Republicans view the U.S. budget deficit, which topped $1 trillion in each of the past four years, as a crisis requiring immediate action. “There has to be a reality out there that says we are in serious trouble,” said Representative Tim Walberg, a Michigan Republican. “We can’t just keep raising it because it’s been traditional to do it.”
The prospect of another debt-ceiling showdown is complicating the stalled talks to prevent more than $600 billion of spending cuts and tax increases from taking effect in January. Republicans, who say they didn’t suffer politically from the 2011 fight, are reprising their tactics. The administration wants to include a debt limit increase in a fiscal cliff deal and prevent Congress from wielding default as a weapon in the future. Talks on averting the fiscal cliff are at a standstill. Democrats continue to demand higher tax rates for top earners and Republicans want to cut spending on entitlements and other programs.

Geithner Fight on Fiscal Cliff Invokes Dodd-Frank Resolve (Bloomberg)
When U.S. senators were picking apart the Obama administration’s plan for a stand-alone consumer- protection bureau during negotiations on the financial-rules overhaul, Treasury Secretary Timothy F. Geithner agreed to put it under the Federal Reserve to ensure that Republican lawmakers wouldn’t kill it. Geithner calculated the bureau wouldn’t be affected and backing down would help get the 2010 legislation passed. His compromise illustrates the pragmatic approach Geithner embraced in pressing for Dodd-Frank during his four years at the Treasury and will need to draw on in one final test as the administration’s lead negotiator with Congress on the so-called fiscal cliff. “There were some very ticklish issues that had to be dealt with,” former Senate Banking Committee Chairman Christopher Dodd, the bill’s co-sponsor, said in an interview. “Tim was certainly reaching out. He made a big difference in making sure we could keep people together on what we ultimately came up with.”
Geithner -- the longest-serving and most influential of President Barack Obama’s economic advisers -- will leave the Treasury in mid-January after testifying before Congress 67 times, appearing 24 times on Sunday talk shows and making 98 trips within the U.S. and abroad. He’s staying to deal with more than $600 billion in tax increases and spending cuts that take effect automatically in January unless Congress acts. If the cliff isn’t averted, the U.S. could fall back into recession, according to the Congressional Budget Office.

U.S. Manufacturing Unexpectedly Shrank as Orders Slowed (Bloomberg)
Manufacturing unexpectedly contracted in November for the fourth month in the last six as factory managers grew more concerned about the potential economic toll stemming from the so-called fiscal cliff. The Institute for Supply Management’s factory index fell to 49.5, the lowest since July 2009, from 51.7 in October. The median forecast in a Bloomberg survey called for 51.4. Fifty marks the dividing line between expansion and contraction. Construction spending in October jumped by the most in five months, another report showed. Weaker overseas demand, less investment in equipment and the possibility of automatic tax increases and government budget cuts in 2013 are hurdles for companies making everything from apparel to machinery. With six months of stagnation in manufacturing, construction gains, reflecting a rebound in housing, are helping pick up some of the slack for the world’s largest economy.
“We could be doing a lot better than we are doing if we had a coherent fiscal policy,” said Ward McCarthy, chief financial economist at Jefferies & Co. Inc. in New York, one of two forecasters to project a contraction. “We have a recovery in housing that’s been underway for a year and a half now. More recently, it’s been picking up steam. This will help offset what’s going on in other places.” Stocks fell, following a two-week advance for the Standard & Poor’s 500 Index. The S&P 500 dropped 0.5 percent to 1,409.46 at the close in New York.

IMF Officially Endorses Capital Controls in Reversal (Bloomberg)
The International Monetary Fund endorsed nations’ use of capital controls in certain circumstances, making official a shift, which has been in the works for three years, that will guide the fund’s advice. In a reversal of its historic support for unrestricted flows of money across borders, the Washington-based IMF said controls can be useful when countries have little room for economic policies such as lowering interest rates or when surging capital inflows threaten financial stability. Still, it said the measures should be targeted, temporary and not discriminate between residents and non-residents. “Capital flows can have important benefits for individual countries across the fund membership and the global economy,” IMF staff wrote in a report discussed by the board on Nov. 16 and published today. They “also carry risks, however, as they can be volatile and large relative to the size of domestic markets.”
Countries from Brazil to the Philippines have sought in recent years to manage inflows of capital that put upward pressure on their currencies and threatened to create asset bubbles. The new guidelines will enable the fund to provide consistent advice, though rules prevent it from imposing views about managing capital flows on its 188 member nations. IMF Managing Director Christine Lagarde has cited the shift on capital controls as an illustration of the fund’s attempts to modernize.

Greece Offers 10 Billion-Euro Debt Buyback to Unlock Aid (Bloomberg)
Greece offered 10 billion euros ($13 billion) to buy back bonds issued earlier this year as the bailed-out nation attempts to cut a debt load that may threaten future international aid. Greek bonds rallied after the so-called modified Dutch auction was announced today by the Athens-based Public Debt Management Agency. The prices offered for bonds maturing from 2023 to 2042 averaged 33.1 percent of face value, based on information in a statement from the debt agency today, higher than euro-area finance ministers indicated would be paid. The offer runs until 5 p.m. London time on Dec. 7. Success is crucial to releasing aid that’s been frozen since June. The offer was part of a package of measures approved by the finance ministers last week to cut the nation’s debt to 124 percent of gross domestic product in 2020 from a projected 190 percent in 2014. The 10 billion-euro buyback may enable Greece to retire about 30 billion euros of debt, Citigroup strategist Valentin Marinov wrote in a comment.
The average price “is higher than previously published or announced,” said Spyros Politis, chief executive officer of Athens-based TT-ELTA AEDAK, which oversees about 300 million euros of assets and owns Greek government debt. “At the moment it looks as if it will be successful, or if they miss the target, they will miss it by a small margin. Anything that reduces the overall debt burden is good.”

Greece Makes Buyback Offer as Merkel Floats Writeoffs (Bloomberg)
Greece offered 10 billion euros ($13 billion) to buy back bonds issued earlier this year as the bailed-out nation attempts to cut a debt load that may threaten future international aid. Greek bonds rallied after the so-called modified Dutch auction was announced today by the Athens-based Public Debt Management Agency. PDMA offered an average maximum purchase price for the bonds maturing from 2023 to 2042 of 34.1 percent, based on information in the statement. The offer runs until 5 p.m. London time on Dec. 7. Success of the buyback is crucial to releasing aid that’s been frozen since June. The offer was part of a package of measures approved by euro-area finance ministers last week to cut the nation’s debt to 124 percent of gross domestic product in 2020 from a projected 190 percent in 2014. The deal may enable Greece to retire about 30 billion euros of debt, Citigroup strategist Valentin Marinov wrote in a comment.
The average price “is higher than previously published or announced,” said Spyros Politis, chief executive officer of Athens-based TT-ELTA AEDAK, which oversees about 300 million euros of assets and owns Greek government debt. “At the moment it looks as if it will be successful, or if they miss the target, they will miss it by a small margin. Anything that reduces the overall debt burden is good.” The bid to ease Greece’s debt curden underscores a move away from austerity-first measures European leaders have embraced since the financial crisis began in 2009. German Chancellor Angela Merkel yesterday opened the possibility that Germany may ultimately accept a write-off of Greek debt, previously a taboo in the biggest contributor to euro bailouts.

Merkel Signals Debt Write-Off Possible as Buyback Begins (Bloomberg)
Chancellor Angela Merkel opened the possibility that Germany may ultimately accept a write-off of Greek debt, as policy makers this week attempt to engineer a buyback that’s crucial for Greece to receive more funding. With Greece announcing bids today to repurchase bonds issued earlier this year, Merkel told Bild newspaper yesterday that euro leaders might consider writing off debt once the country has a budget surplus. Germany has until now ruled out such a scenario as violating European Union treaties. “If Greece one day can rely once again on its own revenue, without having to borrow, then we’ll have to look at this situation and make an evaluation,” Merkel told Bild am Sonntag in an interview when asked about the prospect of debt forgiveness. It wouldn’t happen before 2014 or 2015, “if everything goes according to plan,” the chancellor said.
The shift on Greece’s mounting indebtedness, which triggered Europe’s debt crisis three years ago, signals a growing consensus that a Greek exit could doom the 17-member single currency. German lawmakers approved the latest package to alleviate Greece’s burden after Finance Minister Wolfgang Schaeuble said a default could foreshadow the euro’s collapse. Merkel’s signal of openness to eventual debt forgiveness marks “the end of denial,” Carsten Brzeski, an economist for ING Groep in Brussels who, said in a phone interview. “It’s definitely a shift, but on the other hand, it’s obvious,” said Brzeski, who called an eventual debt writedown inevitable.

20121204 1128 Global Commodities Related News.


Wheat Market Recap Report (CME)
December Wheat finished down 2 3/4 at 842, 16 1/2 off the high and 1 1/2 up from the low. March Wheat closed down 2 3/4 at 860 3/4. This was 2 1/2 up from the low and 16 1/2 off the high. March Chicago wheat traded slightly lower today but KC wheat led all three wheat markets in losses on the day. Early gains were seen after it was reported that the US sold Egypt wheat over the weekend. Early strength was also linked to a lower US dollar and weather patterns that look less than ideal in Argentina. Heavy rainfall is expected through Thursday of this week which could delay harvest, trim yields, and worsen quality. Argentina's Agriculture Ministry estimates harvest at 28% harvested vs. 32% last year. There were rumors floating around late Friday that the government of Argentina may halt any additional export licenses. Kansas City wheat was the downside leader today as it was the most expensive offer in the Egyptian tender over the weekend. Dry weather in the western plains over the next 6-10 days limited losses. The weekly export inspections report offered a neutral bias. Inspections for the week ending November 29th were reported at 14.19 million bushels vs. 7.84 last week and 24.3 million bushels of shipments are needed each week to reach this crop years USDA export estimate. This year's cumulative shipment pace is 42% of the USDA estimate vs. the 5 year average of 52%.
December Oats closed up 6 at 366 3/4. This was 1 1/4 up from the low and equal to the high.

Corn Market Recap for 12/3/2012 (CME)
December Corn finished up 1 at 749, 10 off the high and 4 3/4 up from the low. March Corn closed up 2 at 754 3/4. This was 5 1/4 up from the low and 9 1/4 off the high.
March corn traded slightly higher into the close after a very strong overnight session. Heavy rainfall will be seen in areas of Argentina through Thursday which may cause significant delays to corn sowing. The unfavorable conditions could shift additional acreage over to soybeans which in effect have led many to trim Argentina corn production estimates from the 28 million tonne estimate from the USDA to near 23-25 million tonnes. Gains were limited shortly after open outcry trading began following a very poor export inspections report. Inspections for the week ending November 29th were reported at 9.6 million bushels vs. 15.9 last week and 23.9 million bushels are needed each week to reach this crop years USDA export estimate. The cumulative sales pace for this crop year is 18% of the USDA export estimate vs. the 5 year average of 24%. Many in the market believe the US may see an increase in export demand soon but South America continues to sell corn at a discount to the US.
January Rice finished up 0.105 at 15.375, equal to the high and 0.065 up from the low.

Record Brazil Coffee Crop Cuts Costs for Starbucks: Commodities (Bloomberg)
Record coffee harvests in Brazil, the biggest grower, are compounding a global glut of arabica used by Starbucks Corp. (SBUX) and Dunkin’ Donuts Inc. Brazilian farmers will reap 50.8 million bags in 2013, a record for a so-called low-crop season, according to the median of nine analyst estimates compiled by Bloomberg. The harvest reached 55.9 million 60-kilogram (132-pound) bags in 2012, an all-time high for a peak year. Output usually drops in alternate years because of growing cycles. Prices may fall 13 percent to $1.311 a pound by June 30, the average of 14 predictions shows.
Futures slumped about 50 percent since May 2011, as the highest prices in 14 years spurred Brazilian farmers to boost supply. Their exports jumped 54 percent to $8.7 billion in 2011. The flood of beans has continued and stockpiles tracked by the ICE Futures U.S. exchange are headed for the biggest annual gain in more than a decade. Rising costs and concern that economies are slowing encouraged roasters and consumers to favor cheaper robusta beans. “There’s a significant crop coming from Brazil if the weather continues to be favorable,” said Claudio Oliveira, the head of trading at Castlestone Management LLC in New York, which manages about $500 million of assets. “Abundant supply is the driving force in the market.”

Recap Energy Market Report (CME)
January crude oil prices trended higher throughout the US morning hours, supported by a boost in risk sentiment, gains in global equity markets and weakness in the US dollar. Further support came from an improving European debt situation, with details on Greece's new bond buying program and Spain formally requesting EU support. Some traders pointed to uncertain geopolitical factors as a source of support. However, January crude oil sold off from its best level of the morning in response to US manufacturing data that unexpectedly contracted in November. That along with weakness in equity market pressured crude oil back toward unchanged levels on the session.

Copper Drops From Six-Week High Amid U.S. Fiscal Cliff Concern (Bloomberg)
Copper declined for the first time in four days after touching the highest level in more than six weeks as U.S. manufacturing unexpectedly shrank and a budget standoff intensified. Aluminum, zinc and lead also dropped. Three-month delivery copper fell as much as 0.4 percent to $7,970 a metric ton on the London Metal Exchange and was at $7,974 at 11:19 a.m. in Tokyo. The metal touched $8,045 yesterday, the highest level since Oct. 19. U.S. manufacturing contracted last month amid concern about the potential economic fallout from the so-called fiscal cliff. Budget talks became more confrontational as House Republicans rejected President Barack Obama’s demand for higher tax rates, countering with a $2.2 trillion deficit-cutting plan that would trim Medicare and Social Security. “The U.S. manufacturing data and concern over the fiscal cliff weighed down the metals market,” said Hwang Il Doo, a senior trader at Korea Exchange Bank Futures Co. in Seoul.
The Institute for Supply Management’s factory index fell to 49.5, the lowest since July 2009, from 51.7 in October. The median forecast in a Bloomberg survey called for 51.4. Fifty marks the dividing line between expansion and contraction. The contract for March delivery fell 0.4 percent to $3.645 a pound on the Comex in New York. March futures retreated 0.3 percent to 57,380 yuan ($9,213) a ton on the Shanghai Futures Exchange.

Gold Falls as U.S. Budget Standoff Outweighs Record ETP Holdings (Bloomberg)
Gold dropped as the stalemate in U.S. budget talks weighed on commodities, countering record assets in exchange-traded products. Silver, platinum and palladium fell. Spot gold slid 0.2 percent to $1,712.95 an ounce at 10:13 a.m. in Singapore. Bullion for February delivery dropped 0.4 percent to $1,714.30 an ounce on the Comex in New York, while oil and copper retreated. Holdings in ETPs, up 11 percent this year, expanded to 2,623.446 metric tons yesterday, data compiled by Bloomberg show. U.S. lawmakers are trying to avert more than $600 billion in tax increases and spending cuts starting in January. House Republicans, rejecting President Barack Obama’s demand for higher tax rates, yesterday countered with a $2.2 trillion deficit-cutting plan, which White House Communications Director Dan Pfeiffer said then “does not meet the test of balance.”
“Gold will be driven by sentiment in the broader financial markets in the near term as investors weigh the U.S. fiscal cliff negotiations,” said Xiang Nan, an analyst at CITICS Futures Co., a unit of China’s biggest listed brokerage. Gold may advance as businesses temper spending and central- bank stimulus measures fall short, John Gilbert, chief investment officer at General Re-New England Asset Management, a unit of Warren Buffett’s Berkshire Hathaway Inc. (BRK/A), wrote in a newsletter. Buffett said in a February letter to Berkshire shareholders that investors should avoid gold, because its uses are limited and it doesn’t have the potential of farmland or companies to produce new wealth. Cash silver fell 0.7 percent to $33.42 an ounce, spot platinum lost 0.4 percent to $1,599.50 an ounce, and palladium slipped 0.7 percent to $686 an ounce.

20121204 1126 Soy Oil & Palm Oil Related News.


Soybean Complex Market Recap (CME)
January Soybeans finished up 15 at 1453 3/4, 9 off the high and 11 3/4 up from the low. March Soybeans closed up 15 3/4 at 1448 1/4. This was 12 1/4 up from the low and 6 3/4 off the high.
December Soymeal closed up 2.8 at 445.2. This was 2.7 up from the low and 4.1 off the high.
December Soybean Oil finished up 0.49 at 49.9, 0.39 off the high and 0.5 up from the low.
January soybeans saw double digit gains into the closing bell on strong product demand and impressive export data which helped to support the move higher. Strong PMI data by China along with thoughts that the Chinese might be big buyers of US soybeans in the month of December favored the bull camp to start the week. The weather in Brazil remains mostly favorable this week and the heavy rain in Argentina may shift corn acreage over to soybeans. Both could be slightly negative to prices in the long term. Argentina soybean planting was seen at 58% complete vs. 66% last year. Brazil planting is estimated at 86% complete vs. 76% last week and against 93% last year. Soybean futures saw a boost from another positive export inspections report. Inspections for the week ending November 29th were reported at 51 million bushels vs. 45.5 last week and only 19 million bushels are needed each week to reach this crop years USDA export estimate. The cumulative shipment pace for this crop year is now 45% of the USDA estimate vs. the 5 year average of 33%. The strong demand pace continues to offer support to the price outlook but favorable weather in South America is helping to offset.

EDIBLE OIL: Malaysian palm oil futures tumbled to a three-week low as investors booked profits on expectations of record stocks last month and after strong Chinese economic data lifted markets. (Reuters)

VEGOILS-Palm oil falls to 3-week low on prospects of record stocks
Mon Dec 3, 2012 6:19am EST
    * Palm oil prices post biggest fall since Nov. 12
    * Investors use high stocks to book profits -trader
    * Global commodity markets rise on stronger China factory data
    * Palm oil to end rebound around 2,422 ringgit -technicals

 (Updates prices, adds detail)
    By Anuradha Raghu
    KUALA LUMPUR, Dec 3 (Reuters) - Malaysian palm oil futures
tumbled to a three-week low on Monday as investors booked
profits on expectations of record stocks last month and after
strong Chinese economic data lifted markets.
    Palm oil prices initially inched higher in early trading
hours buoyed by signs of China's economic revival which fuelled
hopes of stronger commodity demand. Later on in the day, the
market posted its biggest fall since Nov. 12 as traders unwound
positions.
    "This is a headache, the market is dropping quite a bit.
Investors are using the high stocks level to book profits," said
a trader with a foreign brokerage, estimating stocks could go
beyond the record 2.5 million tonnes notched in October.
   "In reality, palm oil is at a $350 per tonne discount to
soyoil and that should kick in some demand (and lift the
markets)," he added.
    Palm oil futures are set to post their worst annual
performance this year since the financial crisis struck in 2008
as high stocks, flagging demand and deepening euro zone debt
crisis curbed risk taking.
    The benchmark February contract on the Bursa
Malaysia Derivatives Exchange fell as much as 2.4 percent to
2,313 ringgit ($760) per tonne before settling at 2,317 ringgit.
    Total traded volumes stood at 30,926 lots of 25 tonnes each,
higher than the usual 25,000 lots as investors actively booked
profits.
    Palm oil is expected to end its current rebound, based on a
presumption that the fall from the Nov. 20 high of 2,485 ringgit
has not been completed, said Reuters market analyst Wang Tao.

    Traders said investors were trying to bring the market down
to 2,300 ringgit, after which there was likely to be rebound.
    Other global financial markets were still up on a clutch of
factory surveys on China showing evidence of an economic revival
after seven quarters of slowing growth that signals stronger
commodity demand from the world's second largest
economy.
    China's encouraging revival supported Brent crude, which
held around $111 per barrel on Monday, although gains were
limited by concern about the economic welfare of the United
States, the world's top oil consumer.
    Stronger buying from Europe and India lifted Malaysian palm
oil exports in November compared to a month ago, according to
data from cargo surveyors.
    Based on this, some traders are holding out for signs of
higher demand, coupled with seasonally weaker palm oil output in
Malaysia that could limit the growth of this Southeast Asian
country's stocks.
    Production tends to slow down in the year-end as heavy rains
can trigger floods that disrupt harvesting and complicate
logistics.
    "Previously we were talking about Dec-Jan stocks hitting 3
million tonnes, but I don't think that will materialize," said
another trader. "Instead of going up, stocks could drop down by
at least 50,000 tonnes because of demand from Europe and China".
 
    In palm oil's competing markets, U.S. soyoil for December
delivery rose 0.8 percent. The most active May 2013
soybean oil contract on the Dalian Commodity Exchange
climbed 1.4 percent in late Asian trade.
    In a sign of festival demand, Chinese soy buyers have
stepped up orders from the United States in recent days, keen to
purchase cargoes for delivery in the first quarter of next year,
traders said last week.
    China celebrates a one-week Lunar New Year holiday in
February.