Thursday, December 13, 2012

20121213 1633 Palm Oil Related News.

India Nov refined palm oil imports up 24.3 pct m/m-trade - RTRS
13-Dec-2012 14:13
NEW DELHI, Dec 13 (Reuters) - India imported 76,519 tonnes of refined palm oil in November, a leading trade body said on Thursday, up from 61,544 tonnes in October and slightly higher than the average in a Reuters poll.
Total vegetable oil imports in November were 700,371 tonnes, down from 1,036,107 tonnes in the previous month, the Solvent Extractors' Association (SEA) said in a statement.
India is the world's top vegetable oil importer and its palm oil imports hit their highest level in at least three years in October as buyers took advantage of languishing stocks, especially in Malaysia, the world's No. 2 producer.
A Reuters survey had forecast average vegetable oil imports of 770,375 tonnes in November, with 72,500 tonnes of refined palm oil. (Full Story)
India's vegetable oil year runs from November to October.
India buys mainly palm oils from Indonesia and Malaysia, and a small quantity of soyoil from Brazil and Argentina.

VEGOILS-Palm oil edges down, on track for 3rd straight loss
Wed Dec 12, 2012 11:38pm EST
* Investors cautious on record stocks and U.S. fiscal woes
    * Prices traded in tight range of 2,230 to 2,246 ringgit
    * Traders looking out for Malaysia's new crude palm oil tax
for Jan

 (Updates prices, adds detail)
    By Chew Yee Kiat
    SINGAPORE, Dec 13 (Reuters) - Malaysian palm oil futures
inched lower on Thursday, on track for a third straight loss, as
record stocks and concerns over U.S. fiscal woes dragging on
global growth spooked investors.
    Despite announcements of more monetary stimulus by the U.S.
Federal Reserve, traders remained cautious as sharp differences
on the 2013 budget persisted between Congressional Republicans
and the White House and negotiators warned the showdown could
drag on past Christmas.
    Record high palm oil stocks in Malaysia, the world's No.2
producer, also kept palm oil futures trading near their
one-month lows.
    "The market looks exhausted at current levels, and some
correction is anticipated. But any bounce will be limited with
supply seen at record levels," said a trader with a local
commodities brokerage in Malaysia.      
    By the midday break, the benchmark February contract
 on the Bursa Malaysia Derivatives Exchange had lost 0.4
percent to 2,232 ringgit ($730) per tonne, trading just above
Wednesday's low of 2,229 ringgit, a level unseen since Nov. 12.
    Total traded volumes stood at 11,219 lots of 25 tonnes each,
slightly lower than the usual 12,500 lots.
    Traders will be counting on Malaysian exporters to use up
their tax-free export quota before it expires by the end of the
year and stronger Chinese demand to bolster export figures for
the first half of December.
    They will also be looking for India's palm oil import
figures, expected be lower in November as cold weather that
solidifies the oil capped demand, a Reuters survey showed.
    Malaysia's new crude palm oil export tax for January is also
in focus as analysts said the tax, likely to be set at zero,
could boost exports of the crude grade and ease record high
stock levels.  
    In a bearish sign for palm oil, Brent crude slipped toward
$109 a barrel on Thursday, on rising oil stockpiles and weaker
fuel demand in the United States, while fears that the world's
largest economy might miss a deadline for next year's budget
kept bulls in check.
    In other vegetable oil markets, U.S. soyoil for January
delivery was almost flat in early Asian trade. The most
active May 2013 soybean oil contract on the Dalian
Commodity Exchange fell 0.5 percent by the midday break.  

20121213 1607 Global Markets & Commodities Related News.

STOCKS: European stock index futures pointed to a flat to lower open while Asian shares extended gains for a seventh day, as investors balanced a new monetary boost from the U.S. Federal Reserve with lingering concerns that austerity measures could derail the world's largest economy. U.S. stocks ended nearly flat on Wednesday, giving up most of the day's gains after Fed Chairman Ben Bernanke reiterated that monetary policy won't be enough to offset damage from the "fiscal cliff." (Reuters)

FOREX: The dollar was on defensive after the U.S. Federal Reserve unveiled a fresh bond-buying stimulus program but the yen languished at nine-month lows against the U.S. currency on expectations of more money printing in Japan. The dollar index slipped to one-week low of 79.711 after the Fed's decision on Wednesday and last stood at 79.891, flat from late U.S. levels, with a six-week low of 79.568 seen as an immediate support. The dollar rose 0.5 percent to 83.59 percent, edging near its March high of 84.187 yen.  (Reuters)

FOREX-Dollar broadly soft after Fed, yen extends losses
TOKYO, Dec 13 (Reuters) - The dollar was on defensive on Thursday after the U.S. Federal Reserve unveiled a fresh bond-buying stimulus programme but the yen languished at nine-month lows against the U.S. currency on expectations of more money printing in Japan.
"We still hold the view that the Fed has fully delivered, and that the numerical targets set a high threshold for the eventual Fed policy exit, which still remains in a very distant future," said Vassili Serebriakov, a strategist at BNP Paribas.

Fed ties rates to jobs recovery, adds to stimulus (Reuters)

The U.S. Federal Reserve, announcing a new round of monetary stimulus, took the unprecedented step on Wednesday of indicating interest rates would remain near zero until unemployment falls to at least 6.5 percent.

French farm office raises wheat exports to 10 mln t (Reuters)
Farm office FranceAgriMer raised its forecast of French soft wheat exports outside the European Union this season, but an equivalent cut to exports within the EU meant its outlook for wheat stocks was little changed.

GRAINS: Chicago wheat futures fell for a fifth day running, pressured by U.S. estimates for big stockpiles that reflected softer demand and dragged down prices to levels last seen in July. Wheat for March delivery on the CBOT eased 0.6 percent to $8.07-1/4 per bushel, just off the day's low of $8.07, its cheapest since July 3. Corn and soybeans were also lower, with traders waiting for weekly U.S. export sales numbers due later in the day to see if overseas demand picked up for corn and if Chinese appetite for soybeans remained robust. Corn dropped 0.4 percent to $7.22-1/2 per bushel, near Wednesday's trough of $7.19, the lowest in almost a month. Soybeans also slipped 0.4 percent to $14.68. (Reuters)

IEA sees sluggish oil demand in 2013, good supply (Reuters)
Global oil demand will be sluggish throughout 2013 as economic expansion remains tepid and oil supply levels comfortable, which could alleviate oil price pressures on consumers, the West's energy agency said on Wednesday.

OIL: Brent crude slipped toward $109 a barrel, on rising oil stockpiles and weaker fuel demand in the United States, while fears that the world's largest economy might miss a deadline for next year's budget kept bulls in check. Brent crude fell in the first of four sessions and was down 22 cents to $109.28 a barrel, while U.S. crude was at $86.55, down 22 cents. The January Brent contract expires on Friday. (Reuters)

Iraq, Saudi on OPEC collision course over next oil curb (Reuters)
A new rivalry at the top of OPEC has emerged, pitting up-and-coming Iraq against undisputed oil cartel heavyweight Saudi Arabia.

Italian government may decree return of steel seized from Ilva (Reuters)
The Italian government may amend a decree aimed at rescuing Europe's biggest steel factory ILVA in order to release 1 billion euros worth of steel production seized by magistrates, a junior minister said on Wednesday.

BASE METAS: London copper slipped, bruised by the struggles of U.S. lawmakers to find a fix to a looming "fiscal cliff" and on a rebound in the dollar after it tumbled following the Federal Reserve's extension of loose monetary policy.  Three-month copper on the LME fell by 0.61 percent to $8,079.25 a tonne, reversing small gains seen the previous session. The most-traded March copper contract on the SFE slipped by 0.64 percent to 57,610 yuan a tonne. (Reuters)

PRECIOUS METALS: Gold tumbled more than 1 percent on stop-loss selling, after the Federal Reserve's announcement of a fresh round of bond buying pushed prices to their highest levels in nearly two weeks.  Spot gold stood at $1,696.16. U.S. gold traded at $1,697.80, with more than 16,000 lots changing hands, compared to about 3,000 an hour earlier. (Reuters)

METALS-LME copper falls after Fed; fiscal cliff worries drag
SINGAPORE, Dec 13 (Reuters) - London copper slipped bruised by the struggles of U.S. lawmakers to resolve their fiscal troubles and on profit-taking after November's strong run-up based on expectations for the U.S. Federal Reserve to extend easing measures.
"The key thing here is the ongoing fiscal negotiation. Until they have some resolution, I think that is a dampener for the market," said Thomas Lam, chief economist at DMG & Partners Securities.

PRECIOUS-Gold drops, Fed move raises concern on stimulus scope
SINGAPORE, Dec 13 (Reuters) - Gold dropped about 1 percent after the Federal Reserve linked its monetary policy to unemployment, raising concerns that future economic stimulus could be limited.
"This announcement is a bit confusing to gold investors as it linked policy to unemployment, etc.," said a Tokyo-based trader.

20121213 1104 Global Markets & Energy Related News.

GLOBAL MARKETS-Asian shares inch higher after Fed's stimulus steps
TOKYO, Dec 13 (Reuters) - Asian shares extended gains for a seventh day, after the U.S. Federal Reserve took new stimulus steps to bolster the economy, putting the yen under pressure as expectations grow for more aggressive easing from the Japanese central bank next week.
"The Fed's easing measures met the market's expectations, while the setting of clear inflation and unemployment targets exceeded hopes and will clear uncertainty on the monetary front," said Kim Yong-goo, an analyst at Samsung Securities.

FOREX-Yen extends fall, USD pinned down by aggressive Fed
SYDNEY, Dec 13 (Reuters) - The yen languished at eight-month lows against the dollar and euro as markets expect the Bank of Japan to expand its own easing programme after the Federal Reserve surprised by explicitly linking policy to unemployment.
"Dollar/yen has been moving up for a little while now and you're seeing the trend continue. It gets moved a fair bit by U.S. yields and those moved up despite what the Fed did, shows you a bit of market positioning," said Joseph Capurso, a strategist at Commonwealth Bank.

Oil up on more Fed stimulus, OPEC holds output target
NEW YORK, Dec 12 (Reuters) - Oil prices rose sharply on Wednesday, with Brent crude pushing toward $110 a barrel after the U.S. Federal Reserve announced plans for more monetary stimulus, while a Texas refinery fire lifted refined product futures.
"We were expecting the IEA to revise demand lower for next year in this morning's report, so the fact that they didn't was taken as a bullish signal," said Andy Lebow, vice president at Jefferies Bache in New York, though he cautioned that overall demand for OPEC's crude would still be lower in 2013 than 2012.

IEA sees sluggish oil demand in 2013, good supply
LONDON, Dec 12 (Reuters) - Global oil demand will be sluggish throughout 13 as economic expansion remains tepid and oil supply levels comfortable, which could alleviate oil price pressures on consumers, the West's energy agency said on Wednesday.
It forecast global oil demand growth for 2013 at 865,000 barrels per day, 110,000 bpd higher than in its previous report, taking consumption to an average of 90.5 million bpd.

Iraq, Saudi on OPEC collision course over next oil curb
VIENNA, Dec 12 (Reuters) - A new rivalry at the top of OPEC has emerged, pitting up-and-coming Iraq against undisputed oil cartel heavyweight Saudi Arabia.
Having overtaken Iran as OPEC's second biggest producer, a rejuvenated Iraq is beginning to worry Riyadh.  At Wednesday's meeting of the Organization of the Petroleum Exporting Countries the opening salvos were fired in the struggle over who takes responsibility for cutting output if oil prices, comfortable for now at $109 a barrel, start falling.

20121213 1010 Malaysia Corporate Related News.

BToto may give special dividend
Berjaya Sports Toto (BToto) shareholders may get a special dividend of over RM0.40 per share from the secondary IPO of Sports Toto Malaysia Trust in Singapore. Executive director Freddie Pang added that proceeds from the IPO would also take care of a RM550m loan issue currently held under Sports Toto Malaysia. The payment is to be staggered over four years, until 2017. The listing of the Trust should be completed end-Jan 2013. (Financial Daily)

Quek offers to take Guoco private for RM3.25bn
Tan Sri Quek Leng Chan has made an offer of HKD8.25bn (RM3.25bn) to take its Hong Kong-listed investment holding Guoco Group Ltd private, which is a 24.8% premium over Guoco’s last traded price before the offer. Quek owns a 75% stake in the company. Guoco owns a 25.4% stake in Hong Leong Financial Group, through which it further owns a 64.4% stake in Hong Leong Bank and a 79.1% stake in Hong Leong Capital. (StarBiz)

MBSB buying tower in PJ Sentral
Malaysia Building Society (MBSB) is buying a tower of about 30 storeys in the upcoming PJ Sentral for RM239.2m to cater for its increasing staff count and consolidate all of its subsidiaries under one roof. Tower 3, with a net lettable area of 281,455 sq ft, is more than double MBSB’s current capacity, will be developed over 33 months with completion slated for the final quarter of 2016. (StarBiz) Please see accompanying report.

Malaysia to make rail decisions by 1Q2013
The government will decide by 1Q2013 when the bullet train and the Gemas-Johor Baru electrified double tracking project (EDTP), with a combined worth of about RM35bn, will be implemented, sources said. Malaysia is planning to build a 300km high-speed rail (HSR) line linking Kuala Lumpur and Singapore under a public-private partnership. The project will cost about RM20bn to RM25bn. The Land Public Transport Commission (SPAD) is conducting a study on the HSR system, which it expects to complete by the end of this month. If feasible, SPAD will call for pre-qualification bids by mid-2013. (BT)

CIMB: On high with success of China Machinery IPO. CIMB Investment Bank scored a coup with the initial public offering of China Machinery Engineering Corp, its first Chinese state-owned enterprise listing, as the sale is already oversubscribed. Finance Asia reported yesterday that China Machinery, an international engineering contractor, kicked off a four-day roadshow with a target to raise between HKD2.9 and HKD3.9b (MYR1.2b and MYR1.5b). The stock is set to be floated in Hong Kong on Dec 21.
(Source: The Star)

Media Prima: Forms digital arm to expand revenue. Media Prima Bhd has launched a newly integrated digital media arm, Media Prima Digital, which will become the group's new source of revenue and be targeted to be one of the core businesses in the future. The integration if part of Media Prima's broader strategy of streamlining and optimizing its digital business, which now exists across several platforms covering print, broadcast and radio. (Source: The Edge Financial Daily)

Media: New digital cable TV ABN targets 80% of TV households in 5 years. The ABN Media Group, the new digital cable TV company that began offering trials of its ABNxcess services in June this year in select areas, is targeting to reach 80% of the 6m TV households in 5 years time by offering its basic package at MYR29.99 a month. Service is now available in Sri Damansara, parts of Subang and we will begin broadcasting in two areas in Johor Baru this month. ABN is a unit of ABN Media Group, which is investing RM2b to offer pay-TV services in the country. It is in direct competition with satellite pay-TV operator Astro and IPTV provider, Telekom Malaysia Bhd. (Source: The Star)

20121213 1010 Global Economy Related News.

India: Output rebounds as higher prices reduce rate-cut case
India’s industrial production grew at the fastest pace in more than a year in October and consumer-price inflation accelerated last month, reinforcing the case for the central bank to hold off on an interest-rate cut next week. Output at factories, utilities and mines climbed 8.2% y-o-y after a revised 0.7% decline in September. Consumer prices gained 9.9% in November y-o-y. Prime Minister Manmohan Singh has opened the nation to more foreign investment in the past three months and stepped up efforts to pare a budget deficit to reinvigorate an economy beset by faltering domestic spending and exports. (Bloomberg)

Sri Lanka: Unexpectedly cuts rates for first time since 2011
Sri Lanka unexpectedly lowered its policy interest rates for the first time since 2011 to spur economic growth as a global slowdown has hurt exports. The Central Bank of Sri Lanka cut the reverse repurchase rate to 9.5% from 9.75% and the repurchase rate to 7.5% from 7.75%. Sri Lanka joins nations from Pakistan to the Philippines in cutting borrowing costs to shield expansion from a global slowdown. (Bloomberg)

UK: Unemployment falls as labour market stays resilient
UK jobless claims unexpectedly fell in November and a wider measure of unemployment dropped the most in 11 years, underlining the resilience of the labor market in the face of a weak recovery. Unemployment-benefit claims declined by 3,000 from October to 1.58m. Unemployment measured by International Labour Organization methods dropped 82,000 to 2.51m in the three months through October, the biggest drop since 2001. The jobless rate held at 7.8%. (Bloomberg)

US : Fed links rates to joblessness, prices as bond buying expanded
The Federal Reserve for the first time linked the outlook for its main interest rate to unemployment and inflation and said it will expand its asset purchase program by buying USD45bn a month of Treasury securities starting in January to spur the economy. Rates will stay low “at least as long” as unemployment remains above 6.5% and if inflation is projected to be no more than 2.5%. “The conditions now prevailing in the job market represent an enormous waste of human and economic potential,” Fed Chairman Ben S. Bernanke said. The Fed plans to “maintain accommodation as long as needed to promote a stronger economic recovery in the context of price stability.” (Bloomberg)

US: Fed officials forecast main rate to stay near zero until 2015
A majority of Federal Reserve officials don’t expect to raise the main interest rate until 2015, when they forecast the jobless rate will fall to between 6% and 6.6%. Federal Open Market Committee participants forecast that GDP will expand 2.3% to 3% next year, compared with 2.5% to 3% in September. Estimates for 2014 are from 3% to 3.5%, versus 3% to 3.8% in the previous projection. (Bloomberg)

20121213 1008 Global Markets Related News.

Asia FX By Cornelius Luca - Wed 12 Dec 2012 15:32:18 CT (CME/
The appetite for risk improved further, but temporarily, on Wednesday. The Federal Reserve met the market expectations and targeted 6.5% unemployment rate before tightening borrowing. In the meantime, the "fiscal cliff" game of politics remains in place, so the market will continue to swerve on rumors and information leaks. The European and commodity currencies extended their gains from Tuesday. The yen dug to a new low for its downtrend and is approaching the neckline of a long-term head –and-shoulders in the 1.1960 area. However, the US stock indexes gave up gains and closed flat. The short-term outlook for the European and commodity 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!

US: The Federal Reserve announced a new bond-buying program worth $45 billion per month of longer-term Treasuries.

Asian Stocks Rise Led by Japanese Exporters as Yen Falls (Reuters)
Asian stocks rose, with the regional benchmark index extending its longest rally in more than three years, as Japanese exporters advanced after the yen fell to an eight-month low versus the dollar. Canon Inc., the world’s biggest camera maker, climbed 2.3 percent in Tokyo as the weaker yen boosted the outlook for exporters. Mitsubishi UFJ Financial Group Inc. rose 1.6 percent as Japan’s No. 1 lender is poised to announce the purchase of Bank of America Corp.’s stake in their Japanese private banking venture. Iluka Resources Ltd. dropped 7.2 percent in Sydney as the world’s largest zircon producer said prices for the material will continue to decline.
The MSCI Asia Pacific Index (MXAP) gained 0.3 percent to 127.29 as of 9:37 a.m. Tokyo time, poised to advance for an 11th day, the longest winning streak since July 2009. Markets in China and Hong Kong have yet to open. The measure advanced 11 percent this year through yesterday as central banks took steps to support economic growth. The Federal Reserve said yesterday it will expand asset purchases and majority of the policy makers forecast it to maintain near zero interest rates until 2015. “There’s been a big move in the currency,” said Stan Shamu, Melbourne-based market strategist at IG Markets Ltd., a provider of equities, currencies and commodities trading services. “That’s the big positive for the Nikkei today and the exporters will be the ones that benefit.” Japan’s Nikkei 225 Stock Average increased 1.2 percent, while South Korea’s Kospi Index added 0.4 percent. Australia’s S&P/ASX 200 Index slipped 0.1 percent.

U.S. Stocks Erase Gain as Optimism About Fed Plan Fades (Reuters)
U.S. stocks erased gains as optimism about Federal Reserve plans to buy more bonds faded, with investor focus returning to the budget deadlock in Washington. Berkshire Hathaway Inc. (BRK/A) climbed 2.4 percent after lifting the threshold it will pay for stock, signaling Chief Executive Officer Warren Buffett views the shares as undervalued. DuPont Co. (DD) advanced 1.4 percent as the chemical maker announced a share buyback and said 2012 earnings will be at the high end of forecasts. Eli Lilly & Co. sank 3.2 percent after saying it’s conducting an added study for an experimental Alzheimer’s drug. The Standard & Poor’s 500 Index rose less than 0.1 percent to 1,428.48 in New York, erasing an earlier rally of as much as 0.8 percent. The Dow Jones Industrial Average slipped 2.99 points, or less than 0.1 percent, to 13,245.45. More than 6.6 billion shares changed hands on U.S. exchanges, or 6.3 percent above the three-month average, according to data compiled by Bloomberg.
“Traders have been poking holes in some of the Fed comments,” Michael James, a managing director of equity trading at Wedbush Securities Inc. in Los Angeles, said in an e-mail. “Nothing hugely ‘negative,’ just reason to be doing some selling with the strength we’ve had in the last couple days. Markets are very thin right now and subject to bigger swings this week.” Stocks rallied after the central bank said it will buy $45 billion a month of Treasury securities starting in January, in addition to $40 billion a month of mortgage-debt purchases, as part of its effort to stimulate the economy. Asset buying will continue “if the outlook for the labor market does not improve substantially,” the Federal Open Market Committee said today at the conclusion of a two-day meeting in Washington.

European Stocks Are Little Changed as Fed Decision Looms (Reuters)
European (SXXP) stocks closed little changed as investors waited for the Federal Reserve to announce its decisions on interest rates and economic stimulus, while American lawmakers continued talks on a new budget. PSA Peugeot Citroen surged 10 percent after a report that Algeria make acquire a stake in it. Wacker Chemie AG jumped 12 percent, the most since April 2009, after China announced a subsidy for solar projects. Barry Callebaut AG dropped 2.3 percent after saying it will buy a unit of Petra Foods Ltd. The Stoxx Europe 600 Index rose less than 0.1 percent to 280.64 in London. The equity benchmark has rallied 1.8 percent so far this month as U.S. President Barack Obama struck a conciliatory note on talks to prevent more than $600 billion of automatic tax increases and spending cuts from coming into effect next year.
“The Federal Reserve has a commitment, both to try to stabilize inflation and get unemployment back down,” Stephen King, chief economist at HSBC Holdings Plc in London, told Mark Barton on Bloomberg Television. “In the absence of anything else, more quantitative easing is the inevitable consequence we’ll see later today. It’s not so much the idea of getting roaring growth coming back, it’s more about preventing another dip in the economy.”

Emerging Stocks Gain as Swings Retreat on Fed Treasury Purchases (Reuters)
Emerging-market stocks climbed, with volatility in the benchmark index falling to a seven-year low, as the Federal Reserve said it will buy more bonds as part of measures to boost the world’s largest economy. GCL-Poly Energy Holdings Ltd. (3800) led gains on the MSCI Emerging Markets Index after China announced a second round of solar subsidies. Celltrion Inc. (068270), a biopharmaceutical company, gained the most in eight weeks in Seoul after saying it plans to pay stock dividends. E.ON Russia drove an advance in Moscow’s Micex Index (INDEXCF) on a report the power producer may pay its 2012 net income as dividends. Brazilian online retailer B2W Cia. Global do Varejo surged to a 17-month high in Sao Paulo.
The emerging-markets stock gauge rose for a sixth day, its longest winning streak in three months, adding 0.7 percent to an eight-month high of 1,041.37. Ten-day volatility for the gauge slid to 5.02, to the lowest level since September 2005. The Fed said today it will buy $45 billion of Treasury bonds starting in January, extending its asset-purchase program aimed at bolstering growth. Interest rates will stay low “at least as long” as the unemployment rate remains above 6.5 percent, the Federal Open Market Committee said in a statement. “I’m very positive because what we have witnessed in the last few years is an incredible build-up of money emanating from various central banks around the world,” Templeton Emerging Markets Group’s Mark Mobius, who oversees more than $40 billion, said in a phone interview from Nairobi today. “At the end of the day, it’s all about how much money is available in the system.”

Exporters Lift Nikkei 225 to 8-Month High as Yen Weakens (Reuters)
Japanese equities rose, with the Nikkei 225 (NKY) Stock Average extending an eight-month high, led by exporters after the yen fell to its weakest level since April. Honda Motor Co., which counts North America as its biggest market, led exporters higher. Panasonic Corp. (6752) advanced after its investment rating was raised by Barclays Plc. Mitsubishi UFJ Financial Group Inc. increased 1.9 percent on a report it will buy Bank of America Corp.’s stake in their Japanese private banking venture. The Nikkei 225 (NKY) gained 1.3 percent to 9,702.00 as of 9:27 a.m. in Tokyo, gaining the most in three weeks and heading for its highest close since April 5. The broader Topix index rose 1.1 percent to 799.72, with about six stocks rising for each that fell. All 33 industrial groups on the gauge rose.
“There’s been a big move in the currency,” said Stan Shamu, Melbourne-based strategist at IG Markets Ltd., a provider of trading services. “That’s the big positive for the Nikkei today and the exporters will be the ones that benefit.”

Korean Won Rises to 15-Month High, Bonds Fall on Fed Stimulus (Reuters)
South Korea’s won strengthened to a 15-month high after the Federal Reserve said it will expand asset purchases that boost the supply of dollars. Government bonds fell before a central bank policy announcement. The Fed said yesterday it will buy $45 billion a month of Treasury securities starting in January, in addition to $40 billion a month of existing mortgage-debt purchases. The Bank of Korea will hold its benchmark rate today at 2.75 percent after lowering borrowing costs twice this year, according to 14 out of 15 economists in a Bloomberg News survey. The decision is due at about 10 a.m. local time. Vice Finance Minister Shin Je Yoon said the impact on financial markets from yesterday’s rocket launch by North Korea was “limited” and “temporary.”
The won rose for a fifth day, the longest run of gains since October, and was 0.3 percent stronger at 1,071.23 per dollar as of 9:22 a.m. in Seoul, according to data compiled by Bloomberg. The currency touched 1,071.08 earlier, the strongest level since Sept. 8, 2011. One-month implied volatility, a measure of expected moves in exchange rates used to price options, slid 15 basis points, or 0.15 percentage point, to 4.80 percent. The Kospi index of shares gained 0.4 percent. “The Fed’s announcement is putting appreciation pressure on the won, and few are focused on the Bank of Korea’s policy decision today,” said Cho Young Bok, a Seoul-based currency dealer for Daegu Bank. Intervention by monetary authorities will be to “smooth” gains, rather than to reverse the appreciation trend, according to Cho.
South Korea is concerned about herd behavior in won trading and a worsening of the exchange-rate trend will be the most important factor in making any decision regarding a tightening of restrictions on capital flows, Vice Finance Minister Shin said Dec. 11. The yield on South Korea’s 2.75 percent bonds due September 2017 rose one basis point to 2.97 percent, Korea Exchange Inc. prices show. The one-year interest-rate swap was little changed at 2.78 percent.

Dollar Trades Near Week-Low as Fed Expands Bond Purchases (Reuters)
The dollar was 0.2 percent from its lowest level in a week versus the euro after the Federal Reserve said it will expand its asset purchases, a move that tends to debase the currency. The greenback fell against most of its 16 major counterparts yesterday as members of the Federal Open Market Committee said rates will stay low as long as unemployment remains above 6.5 percent and inflation is in check. The yen touched the weakest level since March versus the dollar before the Bank of Japan (8301)’s Tankan survey tomorrow and the nation’s general election on Dec. 16. “The Fed is clearly going to be expanding its balance sheet at sort of the maximum rate that anybody expected,” said Ray Attrill, the Sydney-based global co-head of currency strategy at National Australia Bank Ltd. “In that sense, it was right that the dollar was sold off a little bit.”
The dollar was at $1.3073 per euro at 9:38 a.m. in Tokyo from $1.3074 yesterday when it touched $1.3097, the weakest since Dec. 5. The yen fell 0.1 percent to 83.34 per dollar, the least since March 27. The euro traded at 108.94 yen from 108.86 in New York, where it climbed to 109.04, the most since April 4. The Fed said it will buy $45 billion a month of Treasury securities starting in January to spur the economy. The U.S. central bank plans to “maintain accommodation as long as needed to promote a stronger economic recovery in the context of price stability,” Chairman Ben S. Bernanke said yesterday at a press conference after he and other committee members met. The Bank of Japan’s quarterly Tankan survey tomorrow will probably show that sentiment among large manufacturers slid to minus 10 from minus 3 in the third quarter, according to the median estimate of economists in a Bloomberg News survey. That would be the lowest since the first quarter of 2010.
Opposition Liberal Democratic Party leader Shinzo Abe, whose party leads in opinion polls before the vote on Dec. 16, has called for a doubling of the central bank’s inflation goal to 2 percent and “unlimited” easing to revive growth. The BOJ is due to a hold a monetary policy meeting on Dec. 19-20.

Fed Officials Forecast Main Rate to Stay Near Zero Until 2015 (Reuters)
A majority of Federal Reserve officials don’t expect to raise the main interest rate until 2015, when they forecast the jobless rate will fall to between 6 percent and 6.6 percent. Federal Open Market Committee participants forecast today that gross domestic product will expand 2.3 percent to 3 percent next year, compared with 2.5 percent to 3 percent in September. Estimates for 2014 are from 3 percent to 3.5 percent, versus 3 percent to 3.8 percent in the previous projection, according to the central tendency forecasts, which exclude the three highest and three lowest of 19 projections. The FOMC earlier today voted to supplement their $40 billion a month of mortgage-bond purchases with $45 billion in monthly Treasury purchases once their Operation Twist program expires at the end of the month. The Fed said interest rates will stay low “at least as long” as the unemployment rate remains above 6.5 percent and if inflation “between one and two years ahead” is projected to be no more than 2.5 percent.
The jobless rate probably will average 7.4 percent to 7.7 percent in the final three months of next year, officials said, versus 7.6 percent to 7.9 percent in September. Five of 19 officials said the first interest-rate increase since 2006 would be warranted in 2014 or sooner, while 13 said it would occur in 2015. One called for an increase in 2016. Officials said prices as measured by the personal consumption expenditures price index may rise 1.3 percent to 2 percent next year, versus an increase of 1.6 percent to 2 percent in September. Central bankers have set a 2 percent target for inflation.

Fed Links Rates to Joblessness, Expands Bond Purchases (Reuters)
The Federal Reserve for the first time linked the outlook for its main interest rate to unemployment and inflation and said it will expand its asset purchase program by buying $45 billion a month of Treasury securities starting in January to spur the economy. “The conditions now prevailing in the job market represent an enormous waste of human and economic potential,” Fed Chairman Ben S. Bernanke said in a press conference in Washington today after a meeting of the Federal Open Market Committee. The Fed plans to “maintain accommodation as long as needed to promote a stronger economic recovery in the context of price stability,” he said. Rates will stay low “at least as long” as unemployment remains above 6.5 percent and if inflation is projected to be no more than 2.5 percent, the FOMC said in a statement. The thresholds replace the Fed’s earlier view that rates would stay near zero at least through the middle of 2015.
The move to economic thresholds represents another innovation by Bernanke, a former Princeton University professor and Great Depression expert who has stretched the bounds of monetary policy as he battled the recession and then sought to jolt the world’s biggest economy out of a subpar recovery. “The Fed has been very active since the crisis began, and they are feeling some time pressure because the longer Americans stay unemployed, the harder it is to incorporate them back into the labor force,” said Dana Saporta, a U.S. economist at Credit Suisse Group AG in New York.

American Companies Are Poised to Boost Capital Spending (Reuters)
American companies are poised to put idle cash to work as demand rebounds in 2013 after spending slumped amid the slowdown in China and Europe’s recession. Manufacturers project they will invest more next year than this year, according to the Institute for Supply Management’s semiannual survey released yesterday. Orders for capital equipment excluding defense and aircraft rose 2.9 percent in October, the biggest increase since February, Commerce Department data showed Nov. 27. Apple Inc. (AAPL), Starbucks Corp. (SBUX) and Chevron Corp. (CVX) are among those announcing additional expenditure plans as economies stabilize, banks ease lending rules and some industries approach full capacity. Companies, excluding financial institutions, are sitting on a record $1.74 trillion in liquid assets that could be put to use, especially if lawmakers agree to avert budget cuts and tax increases scheduled to take effect in January.
“Businesses are flush and highly competitive and this will shine through in a revival of investment spending by this time next year if Washington can get it roughly together,” said Mark Zandi, chief economist at Moody’s Analytics Inc. in West Chester, Pennsylvania. Spending on capital projects, those meant to increase productivity and capacity, will increase 7.6 percent next year, the biggest gain for any December survey going back at least seven years, according to the Tempe, Arizona-based ISM’s poll of purchasing managers. Last December, respondents forecast a 1.9 percent advance for 2012.

U.S. 5-30 Year Rate Gap Near Widest in 8 Weeks Before Sales Data (Reuters)
The extra yield that investors demand to hold 30-year Treasuries instead of five-year notes was near an eight-week high before data that may show U.S. retail sales and industrial production rose last month. The Federal Reserve announced plans yesterday to buy $45 billion of U.S. government debt a month from January and took the unprecedented step of linking stimulus measures to unemployment and inflation. The Treasury will auction $13 billion of 30-year debt today. “The lack of appetite for longer-maturity debt signals investor confidence in the U.S. economic outlook,” said Hideki Shibata, a senior strategist for rates and currencies at Tokai Tokyo Research Center Co. “Because of the Fed’s purchases, yields are unlikely to rise for maturities of up to around five years, so the yield curve will probably steepen.”
Thirty-year bond yields fell one basis point to 2.88 percent as of 9:37 a.m. in Tokyo, while five-year rates also slid one basis point to 0.65 percent. The spread between the two was at 2.23 percentage points after touching 2.26 yesterday, the widest since Oct. 17. The price of the 2.75 percent security due in November 2042 added 1/8, or $1.25 per $1,000 face amount, to 97 11/32. The benchmark 10-year yield declined one basis point to 1.69 percent. Japan’s 10-year government bond yield rose 1 1/2 basis points to 0.71 percent, according to Japan Bond Trading Co., the nation’s largest inter-dealer debt broker. It slid to 0.685 percent on Dec. 6, the lowest since June 2003.

Japan’s Abe Set to Inherit Deepest Manufacturing Gloom Since ‘10 (Reuters)
When Shinzo Abe was prime minister in 2007, optimism among Japanese manufacturers such as Sony Corp. (6758) was near a 16-year high. Now, as polls suggest Abe’s party will retake power in elections on Dec. 16, the Bank of Japan’s Tankan survey will probably show tomorrow that large manufacturers are the most pessimistic since the aftermath of the global recession. Sony hasn’t made a net profit in four years. Worsening sentiment may heighten pressure on Abe to deliver on promises for more fiscal and monetary stimulus even as he’s constrained by the world’s largest public debt. Honda Motor Co. (7267) and Nissan Motor Co. (7201) cut their profit forecasts by a fifth after Japan’s territorial dispute with China dragged down sales, while the government is poised to bail out chipmaker Renesas Electronics Corp. (6723)
“Abe’s intentions are very clear. He wants to weaken the yen, push up stock prices and improve sentiment,” said Masaaki Kanno, chief economist at JPMorgan Securities Japan Co. and a former central bank official. “It remains to be seen whether his policies will work.” Kanno expects the BOJ to add to monetary stimulus at its meeting next week. One of the central bank’s new tools is a planned program of unlimited lending to banks. Policy makers aim to limit restrictions on where money ultimately flows from that initiative, meaning cash could go to companies including hedge funds, people familiar with the central bank’s discussions said.

Bank of Japan’s Unlimited Loans Seen Open to Use by Hedge Funds (Reuters)
The Bank of Japan (8301) plans to avoid restricting where money ultimately flows from its program of unlimited lending to banks, meaning cash could go to companies including hedge funds, people familiar with the central bank’s discussions said. The BOJ doesn’t want to see credit extended to the public sector, such as through funding purchases of government securities, the people said. In October, the BOJ said inter-bank lending wouldn’t be available for use through the facility. Aside from the exceptions, the bank wants to avoid limits so the program is most effective, they said on condition of anonymity because the discussions are private. The board meets next week, and Governor Masaaki Shirakawa said he aimed to decide the details by year-end.
With a shrinking economy, declining population and entrenched deflation, Japan’s central bank has struggled to stoke private demand for credit, even with borrowing costs near zero. The program, outlined in October, follows measures from a venture-capital style lending facility to including real estate investment trusts in the BOJ’s main asset-purchase facility. “The impact of this program on Japan’s economy will be limited,” said Junko Nishioka, chief economist at RBS Securities Japan Ltd. in Tokyo and a former BOJ official. “We have to have companies take risks and that will take a visible recovery in the global economy.”

Japan Machine Orders Rise as Abe Vows Stimulus Ahead of Poll (Reuters)
Japan’s machinery orders rose for the first time in three months, a sign that companies may expect the world’s third largest economy to return to growth in 2013. Orders, an indicator of capital spending, climbed 2.6 percent in October from the previous month, the Cabinet Office said today in Tokyo. The median estimate of 25 economists surveyed by Bloomberg News was for a 3 percent increase. Large orders can cause volatile results. Rising orders and production in October suggest the economy is laying the foundations for recovery after contractions in the last two quarters. The yen has weakened around 3.9 percent against the dollar in the last month, while Shinzo Abe’s Liberal Democratic Party, leading in polls before elections on Dec. 16, has pledged fiscal stimulus to stoke growth.
“Companies are still cautious but a weaker yen and signs of recovery in the global economy are providing some relief,” said Akiyoshi Takumori, chief economist at Sumitomo Mitsui Asset Management Co. “Japan’s economy is going to have a moderate recovery.” The Nikkei 225 gained 0.6 percent to close in Tokyo at 9,581.46, the highest level since April 19. The yen was 0.3 percent lower at 82.75 per dollar as of 4:05 p.m.

Australian Bonds Drop on Fed Policy, Currency Near 3-Month High (Reuters)
Australia’s bonds fell, pushing yields on 10-year securities to a two-week high after the Federal Reserve said it will expand Treasury buying to stimulate the economy, crimping investor appetite for safer assets. The Australian dollar traded near the highest level in almost three months versus its U.S. peer which tends to be debased by expansionary monetary policy. The Federal Open Market Committee said rates will stay low as long as U.S. unemployment remains above 6.5 percent and inflation is in check. The Australian and New Zealand dollars were buoyed as global equities advanced. The currencies were also supported before a private report tomorrow forecast to show an expansion of Chinese manufacturing in December.
“The 10-year part of the curve probably reflects developments in U.S. 10-years after the Fed meeting,” said Gavin Stacey, chief interest-rate strategist in Sydney at Barclays Plc, referring to Australian bond yields. “The market is starting to reflect the global economic backdrop that is looking somewhat better than it had over recent times. We think yields in general across the curve are likely to grind higher.” The yield on 10-year Australian debt rose four basis points, or 0.04 percentage point to 3.26 percent as of 11:30 a.m. in Sydney. It earlier touched 3.29 percent, the highest since Nov. 26. The equivalent U.S. yield reached 1.71 percent yesterday, the highest since Nov. 7.
Australia’s dollar was at $1.0549 from $1.0555 yesterday, when it climbed as high as $1.0586, the strongest since Sept. 14. The Australian dollar dropped versus its trans-Tasman counterpart, reaching as low as NZ$1.2503, the weakest since Oct. 12. The New Zealand dollar traded at 84.34 U.S. cents from 84.36 yesterday when it reached 84.54, the most since Feb. 29.

Euro Rebuilding Vision Fades as Germany’s Vote Looms Over Crisis (Reuters)
Europe has lost the vision thing. The word “vision” appeared seven times in a June outline for transforming the euro zone into an American or Swiss-style economic union. It dropped out of an October follow-up and is absent from a final roadmap to be discussed at a summit in Brussels today. The scaled-back ambitions reflect ebbing pressure from financial markets, pre-election politics in Germany, a hardening of the ideological divide between northern and southern Europe, and the recognition that an overhaul of economic governance won’t work without a banking-system fix. “EU leaders might as well stay home,” Guy Verhofstadt, a former Belgian prime minister who is now in the European Parliament, said in Strasbourg, France, yesterday. “The political reality is that we are all waiting for the German elections before taking the crucial steps to end the crisis.”
The next stopgap is due this afternoon, when euro finance ministers are slated to approve a 34.4 billion-euro ($45 billion) loan disbursement to Greece. Still, creditor-country leaders such as Dutch Prime Minister Mark Rutte have said current aid pledges might not be enough to turn Greece around. So many EU crisis managers have descended on Brussels -- all 27 finance ministers to haggle over bank oversight yesterday, including 17 euro ministers to write the Greek check today, and all 27 leaders from 5 p.m. today and into tomorrow -- that the EU’s building custodians had to temporarily shutter the summit headquarters last night to get ready.

EU to Dilute Timeline for Euro-Area Overhaul, Draft Shows (Reuters)
European Union leaders are set to dilute the timeline for overhauling the euro zone, as German Chancellor Angela Merkel steps on the brakes. A draft statement for tomorrow’s EU summit drops a three- stage timetable that would commit euro leaders to consider as of 2014 paying into a budget to help absorb economic shocks. Such a budget could be weighed as the euro area “evolves toward deeper integration,” the document obtained by Bloomberg News said, without giving a deadline. Advances toward fiscal federalism “will take more time and will require in-depth consultations.” With Merkel running for a third term in late 2013, the Berlin government has chafed at offering further debt-crisis aid or venturing into a longer-term euro remake potentially bearing hidden costs for German taxpayers. Merkel’s objections had already led EU President Herman Van Rompuy to banish talk of moves toward common debt issuance from a roadmap for the euro’s future issued last week.
Pushback from Germany and northern creditor-country allies was reflected in today’s proposed summit statement, which abandoned the stage-by-stage timetable for deeper integration that featured in a Dec. 3 draft.

EU Lawmakers Seek Greek Swap Details After ECB Bars Files (Reuters)
Lawmakers in Italy and Germany are urging their governments to demand greater transparency from the European Central Bank after a court upheld its decision to keep documents secret that show what the central bank knew about Greece’s finances before its bailout. “Technocracies and kleptocracies cannot prevail over politics and democracy,” Senator Elio Lannutti, a member of the Italian Values party, said in a phone interview today. “The ECB is impermeable to transparency.” Lannutti, speaking in the lower house of parliament on Dec. 5, asked the government for clarity on how Greece masked its debt and how it plans to eliminate any doubt that the country’s financial situation may be worse that what it reported. He also sought an estimate of how much it may cost Italy to save Greece.
The European Union’s General Court in Luxembourg on Nov. 29 ruled that the central bank was right to withhold documents from 2010 because disclosure “would have undermined the protection of the public interest so far as concerns the economic policy of the European Union and Greece.” The case brought by Bloomberg News was the first legal challenge of the ECB to make public details of its decision-making process, leaving one of the region’s most powerful institutions free from public scrutiny.

20121213 1008 Global Commodities Related News.

DTN Closing Grain Comments 12/12 14:33 Grains Fail to Inspire Buyers (CME)
Corn, soybean, and wheat prices generally dipped lower again Wednesday as relatively few traders have been willing to act as buyers in the last few weeks of the year.

Wheat Market Recap Report (CME)
March Wheat finished down 9 1/2 at 812, 13 1/2 off the high and 3 up from the low. May Wheat closed down 9 1/4 at 824 1/2. This was 3 1/4 up from the low and 12 3/4 off the high. March Chicago and KC wheat traded lower on the day as the market followed through with the weakness seen yesterday. Some of the losses may have been due to margin calls on traders with long positions who were forced to liquidate but the technical picture soured which favored the bear camp. Many traders believe the sharp decline in prices seen over the last 24 hours will bring in more export demand which may stabilize futures in the short term. Furthermore, the corn vs. wheat spreads have collapsed which could mean increase domestic feed wheat demand in early 2013. Tunisia tendered for 100,000 tonnes of soft wheat yesterday and the lowest offer was pegged at $362.69 per tonne. Some expect the business to be done by France or the US.
Jordan bought 50,000 tonnes of optional-origin wheat and Japan bought 21,530 tonnes of feed wheat from the US. Japan also released a tender for an additional 120,000 tonnes of feed wheat overnight. Conditions in the west continue to look supportive to the KC wheat market. Some forecasters show showers entering the western plains later this week but accumulation is expected to be light. Very little is in the forecast to offer improvement. March Oats closed down 2 3/4 at 385 1/4. This was 3 1/4 up from the low and 5 off the high.

Corn Market Recap for 12/12/2012 (CME)
March Corn finished down 2 1/2 at 725 1/2, 6 1/4 off the high and 6 1/2 up from the low. May Corn closed down 2 at 728 1/2. This was 6 1/2 up from the low and 5 1/2 off the high. March corn traded modestly lower on the day as the wheat market continued its decline following yesterday's bearish USDA report. Corn export demand was left unchanged in yesterday's USDA report but the pace of sales and shipments remains sluggish. Newswires reported this morning that South Korea's largest feed maker bought 238,000 tonnes of corn from South America and South Africa in its overnight tender. The tender excluded the US. The EIA ethanol stocks report was not support to the complex and ethanol production for the week ending December 7th averaged 824,000 barrels per day. This is down 1.3% vs. last week and down 12.2% vs. last year. Total ethanol production for the week was 5.8 million barrels. Corn used in last week's production is estimated at 86.5 million bushels. This crop year's cumulative corn used for ethanol production for this crop year is 1.2 billion bushels. Corn use needs to average 86.6 million bushels per week to meet this crop year's USDA estimate of 4.5 billion bushels. Stocks as of December 7th were 20.02 million barrels. This is up 3.6% vs. last week and up 17.4% vs. last year. January Rice finished down 0.175 at 15.345, equal to the high and equal to the low.

Recap Energy Market Report (CME)
January crude oil prices were under some minor early pressure but managed to regain its footing ahead of mid session. The market was probably emboldened by the recovery in US equities and because of the latest promise of ongoing easing from the US Fed. clearly energies were at times undermined by the fear of a setback in the fiscal cliff talks but it seemed as if the trade was able to throw off that negative theme. January crude oil sold off from their best level of the morning in the wake of EIA inventory data that showed a modest build last week of 843,000 barrels. Crude oil imports for the week stood at 8.499 million barrels per day compared to 8.230 million barrels the previous week. The refinery operating rate was down 0.2% to 90.40%. The other surprise feature that pressured energy markets was the larger than expected build in EIA gasoline stocks last week of 5.000 million barrels. Average total gasoline demand for the past four weeks was down 1.25% compared to last year. EIA distillate stocks rose 2.986 million barrels. Crude stocks at 372.609 million barrels is the highest for this week since 1987. EIA crude stocks rose 843,000 barrels and are 38.458 million barrels above year ago levels. Also, crude stocks stand 46.454 million barrels above the five year average. Crude oil imports for the week stood at 8.499 million barrels per day compared to 8.230 million barrels the previous week. The refinery operating rate was 90.40% down, 0.20% from last week compared to 85.10% last year and the five year average of 85.00%. EIA gasoline stocks rose 5.000 million barrels and are 1.703 million barrels below last year and 5.118 million above the five year average. Average total gasoline demand for the past four weeks was down 1.25% compared to last year. Gasoline imports came in at 585,000 barrels per day compared to 513,000 barrels the previous week. EIA distillate stocks rose 2.986 million barrels and stand at 23.447 million barrels below last year and 27.959 million below the five year average. Distillate imports came in at 191,000 barrels per day compared to 155,000 barrels the previous week. Average total distillate demand for the past four weeks was down 0.66% compared to last year. Heating oil stocks at 27.054 million barrels is the lowest for this week since 2011 EIA heating oil stocks rose 1.141 million barrels and are 11.782 million barrels below last year and 16.816 million below the five year average.

Oil Trades Near Week High on Fed as IEA Boosts Demand Forecast (Reuters)
Oil traded near the highest level in a week in New York after the Federal Reserve announced new measures to bolster the U.S. economy and the International Energy Agency increased its forecast for crude demand. Futures were little changed after climbing the most in two weeks yesterday. The Fed said it will buy $45 billion a month in Treasury securities to help boost economic growth in the world’s biggest crude user. The IEA increased its estimates for oil consumption in the fourth quarter and 2013 on signs of a rebound in China. OPEC kept its production target unchanged for a second time this year as members judged prices to be sufficiently high. Crude for January delivery was at $86.74 a barrel, down 3 cents, in electronic trading on the New York Mercantile Exchange at 10:23 a.m. Sydney time. The contract increased 98 cents to $86.77 yesterday, the highest close since Dec. 5. Prices are down 12 percent this year.
Brent for January settlement gained $1.49 to $109.50 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark contract closed at a premium of $22.73 to West Texas Intermediate futures. The Organization of Petroleum Exporting Countries, which pumps 40 percent of the world’s oil, maintained its official quota at 30 million barrels a day, a level it now exceeds by about 1 million barrels a day. It failed to elect a new secretary-general at a meeting yesterday in Vienna and agreed to extend the term of Abdalla El-Badri for one more year.

Silver Market Recap Report (CME)
The silver market also waffled around both sides of unchanged today but the market was ultimately able to throw off the negative bias and forge some decent gains. Some traders might suggest that silver outperformed the gold market and others might suggest that silver has adopted a tighter positive correlation with US equities. The silver market probably garnered some added spillover buying interest from the noted and ongoing gains in the copper market.

Gold Market Recap Report (CME)
The gold market forged a range today of roughly $17 but the bull camp might point to the capacity to reject early selling as a positive. However, the bear camp might suggest that the magnitude of the gains today were suspect in the face of an extension of quantitative easing. Perhaps some gold bulls wanted to see more forceful easing promises from the Fed or perhaps some gold bulls were simply put off balance as a result of a slight setback in the fiscal cliff talks. Some traders were suggesting that the passing of the FOMC meeting might have caused some longs to exit to the sidelines ahead of the year end and specifically ahead of the end of the lame Duck Congress.

20121213 1007 Soy Oil & Pam Oil Related News.

Soybean Complex Market Recap (CME)
January Soybeans finished up 1 1/2 at 1473 1/2, 5 1/4 off the high and 16 1/4 up from the low. March Soybeans closed down 3/4 at 1470 1/2. This was 15 1/4 up from the low and 5 1/2 off the high. January Soymeal closed up 3.9 at 452.0. This was 9.0 up from the low and 1.7 off the high. January Soybean Oil finished down 0.66 at 49.54, 0.89 off the high and 0.04 up from the low.
January soybeans traded slightly higher on the day but forward contracts ended the day in negative territory due to weakness in the peripheral grain markets. Strong end user demand continues to support the complex and rumors continue to circulate that China has secured additional cargos on this week's dip in prices. The market expects another impressive showing from the export sales report tomorrow as well as NOPA crush on Friday. Brazil weather remains favorable at the moment which supports good growing conditions for the soybean crop. Some suggest that if there are no major disruptions in the December weather pattern, production has the potential to be greater than the estimated 81 million tonnes. Argentina is expected to see a drier period over the next 7-10 days which should improve planting progress. Corn planting remains behind schedule which is helping support the theory that more acreage has already been shifted to soybeans. Basis was firm across the Corn Belt and in the Gulf of Mexico due to slow farmer sales and strong crush and export demand.

EDIBLE OIL: Malaysian palm oil futures dropped to a one-month low as forecasts for a higher supply of rival soybean oil stoked concerns of a global vegetable oil surplus. (Reuters)