20101011 1734 FKLI EOD Daily Chart Study.

FKLI closed : 1490.5, changed : +11 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : turned upward, buyer counter attack.
Support : 1485, 1470, 1458 level.
Resistant : 1500, 1530, 1550 level.
Comment :
Better volume transaction but relatively low FKLI surged up higher recorded gain ahead of the national budget announcement this coming Friday. Daily chart formed a small body up bar candle closing near upper Bollinger band level as the it started to expand outward indicates that market is likely to trade upside biased for the near term.
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.

20101011 1159 Local & Global Economics News.

Malaysia: Export growth eased in August
Malaysia’s exports rose at the slowest pace in nine months in August, adding to evidence that weakening growth in the world’s largest economies is hurting demand for Asian goods. Overseas shipments climbed 10.6% from a year earlier to RM52.9bn ringgit (USD17.1bn) after gaining 13.5% in July, the International Trade and Industry Ministry announced. (Bloomberg)

US: Payrolls decline more than forecast
The US lost more jobs than forecasted in September as local governments fired educators and other workers to make up for declining tax revenue. Payrolls fell by 95,000 workers after a revised 57,000 decrease in August, the Labor Department said. Companies added 64,000 jobs, less than the forecast, while the unemployment rate held at 9.6%. (Bloomberg)

US: Retail sales probably rose in September
Retail sales in the US probably increased in September for a third month, easing concerns consumer spending will weaken and endanger the recovery, economists said before reports this week. A projected 0.4% gain in sales would match the prior month’s advance and is based on the median estimate of 57 economists surveyed before the Commerce Department’s 15 October report. (Bloomberg)

U.S: Lost more jobs than forecast in September as local governments fired teachers and other workers in response to declining tax revenue. Payrolls fell by 95,000 workers after a revised 57,000 decrease in August, Labor Department figures in Washington showed. Private employers added 64,000 jobs, less than forecast. Wages and the workweek stagnated. (Source: Bloomberg)

U.S: Wholesale inventories rose more than forecast in August as companies kept stockpiles in line with demand. The 0.8% increase in the value of inventories followed a revised 1.5% gain in July that was more than initially estimated, Commerce Department figures showed in Washington. Sales rose 0.5% after a 0.8% gain a month earlier. (Source: Bloomberg)

Canada: Employment and housing figures released confirm that economy is cooling faster than the central bank had forecast , indicating the Bank of Canada will refrain from raising interest rates until next year. Employment in Canada unexpectedly fell by 6,600 jobs in September, the second drop in the past nine months, Statistics Canada said. Housing starts slowed to an annual pace of 186,400 units from 189,300 in August, Canada Mortgage and Housing Corp. said. (Source: Bloomberg)

Germany: Exports declined for a second month in August as a strengthening euro and slowing global growth curbed demand. Sales abroad, adjusted for working days and seasonal changes, slipped 0.4% from July, when they fell 1.6%, the Federal Statistics Office in Wiesbaden said. Imports rose 0.9% from July, when they fell 2.2%.(Source: Bloomberg)

France: Bank of France?s business confidence rose in September as industrial production picked up. The Bank of France's Business Sentiment Indicator for manufacturers gained to 102 in September, after holding at 101 for the previous five months, the Paris-based central bank said in a statement. (Source: Bloomberg)

U.K: Producer prices increased more than economists forecast in September as raw-material costs jumped, feeding inflation into the economy. The cost of goods at factory gates rose by 0.3% on the month, the Office for National Statistics said in London. Raw material costs climbed by 0.7% from August. (Source: Bloomberg)

China: Sold a record amount of Japanese debt in August , snapping a seventh-straight month of purchases. China cut Japanese debt holdings by a net JPY2.02tr (USD24.5b), the Ministry of Finance said in Tokyo, the biggest monthly sale in data going back to 2005. (Source: Bloomberg)

Japan: Kan's cabinet endorsed a JPY5.1tr (USD62b) stimulus plan to safeguard an economic recovery and help local governments and small businesses cope with the surging yen. About JPY3.1tr will go toward assisting regional economies and small businesses, the finance ministry said in a statement. The package also includes an undefined amount to find new sources of rare earth metals after Japan said China disrupted shipments following a territorial dispute. (Source: Bloomberg) 

20101011 1143 Malaysia Corporate News.

MAHB awards WCT with BOT concession
WCT has been awarded a BOT concession by Malaysia Airports Holdings Bhd (MAHB) to undertake the privatization of the development of an integrated complex and all associated works in the new Low-Cost Carrier Terminal (KLIA2) at the Kula Lumpur International Airports for a period of up to 25 years. In a filing to Bursa last Friday, WCT said the company and MAHB, will jointly undertake the concession via a special purpose vehicle (SPV) with the ratio of 70:30. (Malaysian Reserve)

Four new highways to be announced in Budget 2011
Four new tolled highways have been proposed for the peninsula and are likely to be announced during the Budget 2011 speech on Friday. The Edge Financial daily learned that of the four, one road is already in existence while the other three will be mew alignments of existing roads, or roads that are in the process of being built. It is understood that PLUS Expressways Bhd would be the concession operator of two of the roads, while Permodalan Nasional Bhd (PNB) would run the other two. The highways operated by PLUS are from Sungai Dua to Juru in Penang, and from Kinrara to Damansara in the Klang Valley, while the PNB-operated highways are said to be from Ampang to Cheras, and from Damansara to Sungai Buloh. (Financial Daily)

Khalid puts RM10.2bn price tag on pipes
In an interview with The Edge, Selangor state MB Tan Sri Abdul Khalid Ibrahim says that he and the federal government are looking to seal the Selangor state water asset consolidation deal in principle in two months. As part of the pricing for the entire state’s water asset transfer to PAAB, Khalid mentioned that the valuation now includes all pipes valued at RM10.2bn. Khalid also mentioned that the state will not force the value of the pipes into the pricing of the water assets when the former sells the assets to PAAB, but says the value can be reflected as part of the future lease agreement when the state government undertakes the O&M. (Financial Daily)

UMW wins RM71m contract
UMW Holdings Bhd said it was awarded a contract to supply 21 fire fighting vehicles valued at RM71m to Malaysia Airports Holdings Bhd. The contract includes a comprehensive maintenance agreement for a period of 15 years, it said in a faxed statement yesterday. (StarBiz)

Mutual Tactic offers RM295m for NV Multi
NV Multi Corp Bhd, a bereavement care company, has received an offer from its managing director, Datuk Kong Hon Kong, son Kong Yew Foong and parties acting in concert to acquire the entire business and undertakings of the company for about RM295m or equivalent to 78 sen a share. The company told Bursa Malaysia yesterday that Mutual Tactic Sdn Bhd had offered to acquire its entire business and undertakings, including assets and liabilities. Kong and his son (who is the executive director of NV Multi) are directors of Mutual Tactic. The other directors of Mutual Tactic are Ng Teck Wah and Lim Chih Li @ Lin Zhili. Parties acting in concert with the Kongs are Tan Poh Hwa, Anugaris Sdn Bhd and Meridian Location Sdn Bhd collectively the “certain shareholders” in this corporate exercise. They collectively hold 106.27m shares, representing 28.09% stake in NV Multi. (StarBiz)

Government should lead way in Johor O&G hub plan
Johor wants the Federal Government to lead the way in developing Johor’s southeast areas of Teluk Ramunia and Pengerang into a new oil and gas (O&G) hub in the region. A senior official with the State Economic Planning Unit (Upen), who declined to be identified, has proposed that a federal level unit be set up to oversee and facilitate the implementation of the plan to ensure the project would be on the right track. He said it was important to have such a unit involved in the development of the country’s O&G hub projects and related activities as there was none at the moment. He added that the central unit would coordinate in the planning of the hub, including putting infrastructure facilities such as water, power, telecommunications, connectivity, logistics and giving incentives to investors. (StarBiz)

Energy: Sarawak to build more coal-fired plants as back-up. Sarawak plans to build more coal fired power plants as back-up energy sources for the state, State Public Utilities Minister said. They plan to build a coal fired plant in Balingian in Mukah Division and another one in Kapit (Merit Pila) with an estimated of 400m tones of coal reserves as back-up in case there is a drawback, for example a long drought. (Source: Malaysian Reserve)

IJM: Looking at listing infrastructure assets. IJM Corp Bhd is looking at listing its infrastructure assets, in India as well as those in Malaysia, in India. The group is also exploring the possibility of dual listing in Bursa Malaysia. Sources also say IJM has roped in consultants to make preparations for the listing exercise. (Source: The Edge Financial Weekly)

Nestle, BAT: Nestle buys land from BAT for RM36m. Nestle Manufacturing Sdn Bhd (NMSB), has signed a RM36m sales and purchase agreement with Tobacco Importers and Manufacturers Sdn Bhd (TIM), a wholly-owned subsidiary of British American Tobacco Malaysia Bhd (BAT) for the purchase of a piece of land in Selangor. The land will used by NMSB for manufacturing operations in relation with the current adjacent manufacturing facility, which is also owned by NMSB. (Source: Malaysian Reserve)

Plus: EPF expresses interest in PLUS. The acquisition of PLUS Expressways Bhd may move a step close to realization as the Employees Provident Fund (EPF) has expressed an interest in the toll road concessionaire. EPF's interest in acquiring PLUS was put forward to Khazanah Nasional Bhd's board during its meeting last week. However no formal proposal has been submitted yet as the EPF is said to be seeking green light from the Prime Minister Datuk Seri Najib Razak, who is also the finance minister. (Source: The Edge Financial Weekly)

20101011 1131 Global Market News.

U.S. corn jumps by daily limit to hit 2-year high
SINGAPORE, Oct 11 (Reuters) - Chicago corn jumped 8.5 percent to its highest in more than two years, marking its sharpest gain since 1972, after the U.S. government forecast supplies in the world's top exporter to shrink to their lowest in 14 years.
"Any period of time where you get two consecutive limit-up days, it's likely to spur a little bit of panic buying as some people try to get in before they perceive it being a little too late," said Luke Matthews, commodity strategist at Commonwealth Bank of Australia.

Dollar at 15-yr low vs yen, Asian stocks rise
HONG KONG, Oct 11 (Reuters) - The dollar slid to a 15-year low against the yen and Asian stocks rose as U.S. jobs data boosted the chances of easier U.S. monetary policy and IMF and G7 meetings produced little to ease global currency tensions.
"We've had low interest rates in the most developed economies for some time and we have robust growth and the need to tighten policy elsewhere. That suggests the flows going into the emerging world are going to continue," said Alan Ruskin, global head of FX Strategy at Deutsche Bank.

US employment seen flat in Sept, jobless rate up
WASHINGTON, Oct 8 (Reuters) - The U.S. economy probably added no jobs in September as shrinking government payrolls offset modest gains in private hiring, an outcome that would cement expectations of further Federal Reserve action to spur the recovery.
The government is expected to report on Friday that private employers added 75,000 jobs in September after an increase of 67,000 in August, according to a Reuters survey. The report is due at 8:30 a.m. (1230 GMT).

Commodities poised to ride central bank cash higher
NEW YORK/LONDON, Oct 7 (Reuters) - Commodities could extend a rally that has lifted prices more than 10 percent since late August, if central banks pump billions more dollars into the global economy to prop up the sputtering recovery.
Raw materials prices surged after U.S. Federal Reserve Chairman Ben Bernanke said on Aug. 27 the Fed was prepared to use "unconventional" policies such as buying more long-term securities to drive down interest rates, if necessary.

PRECIOUS-Gold steadies off record high, eyes U.S. data
LONDON, Oct 8 (Reuters) - Gold steadied on Friday, consolidating after the previous day's volatile trading saw it hit record highs before staging its biggest daily loss in two months, as investors took to the sidelines ahead of key U.S. payrolls data.
The foreign exchange markets, which have a significant impact on gold, are also awaiting the annual meeting of the International Monetary Fund and World Bank this weekend, which is expected to give fresh direction to currencies next week.

FOREX-Dollar steady ahead of U.S. jobs, G7
LONDON, Oct 8 (Reuters) - The dollar held steady on Friday, recovering from a sell-off earlier this week as investors booked profits and braced for U.S. jobs data and Group of Seven (G7) and IMF meetings in Washington later in the day.
The dollar remained under pressure as market players expect the U.S. Federal Reserve to pump more money into the economy next month. Those expectations boosted the euro by 7.5 percent last month and pushed it to its highest level since January.

Jobs and currencies put investors on edge
LONDON, Oct 8 (Reuters) - Investors pulled back from riskier assets on Friday, selling stocks and buying the dollar, as they approached a key test of U.S. economic recovery and a potentially volatile weekend of global currency talks.
Wall Street also looked set to open flat to lower pending the release of jobs data.
U.S. monthly non-farm payrolls data for September was at 1230 GMT, providing a snapshot of how the stumbling U.S. economy is impacting jobs -- and with them consumer confidence and likely spending patterns.

20101011 1127 Soy Oil & Plam Oil Related News.

ITS FCPO export down 0.4% to 395,015 tonnes for the period of 1~10 Oct 2010.
SGS FCPO export down 0.2% to 382,828 tonnes for the period of 1~10 Oct 2010.

MPOB Official Data for the month of Sep 2010
Export up 21.16%
Stock up 0.2%
Output down 2.7%

Soy product futures surged to their respective daily trading limits in unison with soybeans. The bullish implications of tighter soybean supplies helped propel both soyoil and soymeal. Soyoil futures garnered support from bullish export forecasts, while soymeal was pulled higher by corn and bullish outlooks for domestic feed demand. December soyoil settled 2.50 cents or 5.7% higher at 46.62 cents per pound. December soymeal ended $20.00 or 6.8% higher at $316.20 per short ton.(Source: CME)

Crop Report 'Shocker' Ripples Through Agriculture Sector (Source: CME)
Government forecasters slashed their estimates for the U.S. corn harvest Friday, with the prospect of tighter supplies triggering a surge in futures prices and a rally in shares across the agribusiness sector. The U.S. Department of Agriculture forecast lower yields from what is still expected to be the third-largest harvest on record, but carry-out stocks are projected to be below the symbolic level of one billion bushels. Futures on corn, soybeans and wheat all rose to their daily trading limits, while shares in tractor makers and fertilizer producers soared on the prospect of higher farm incomes. The food and meat sectors saw sharp slides in share prices because of higher animal feed and raw material costs. USDA shaved a record 6.7 bushels per acre from last month's corn-yield estimate, and now projects 155.8 bushels an acre from the national harvest. The consensus among analysts was for 159.9 bushels an acre.
"Shocker may be an understatement," said Jason Britt, president of Central State Commodities, a Kansas City brokerage. "It's very out of character for the USDA to lower the corn yield so much." The USDA was projecting a record corn crop as recently as August, but farmers have been disappointed as the harvest progressed. The plants suffered from excessive early-season rains that washed away nitrogen, a crucial nutrient. Crops also were stressed by unusually hot overnight temperatures during the summer. Other agricultural commodities followed corn higher. Wheat and soybeans surged in part because both, like corn, serve as an animal feed. Livestock futures also climbed because feed is a major cost for producers. "This is a very tight balance sheet we now have to live with for a long time," said Sal Gilbertie, lead manager of the Teucrium Corn Fund, an exchange-traded fund based on corn futures.
CF Industries Inc. the fertilizer maker, led the rally in agribusiness stocks with Monsanto Co. Deere & Co. surging as well. Meat processors, including Tyson Foods Inc. and Smithfield Foods Inc.. were hit hard, with investors concerned about rising costs and a possible challenge to the supply discipline that has helped the sector return to profitability after being buffeted by the 2008 commodity boom. While many traders and analysts could see this year's corn crop yield drifting down to 155 bushels an acre, few expected the USDA to make such an aggressive revision so soon. The U.S. harvest is roughly 50% complete.

Syngenta Developing Drought-Resistant Corn For Asia (Source: CME)
Global crop protection and seed-making company Syngenta AG is developing new drought-resistant hybrids of corn for the Asian market, in order to boost the region's output, company executives said. At a time when severe drought and floods have affected countries as diverse as Russia, Pakistan and Germany, there is a strong need to grow crop varieties to better tackle weather fluctuations and ensure sufficient output. Syngenta has developed heat-tolerant hybrids of corn for the U.S., and its plant breeders there are working with their Asian counterparts to try to transfer those traits to corn varieties grown in tropical and sub-tropical regions, Alejandro Aruffo, the company's head of global research and development, said. Aruffo was speaking on the sidelines of the company's inauguration of a new research facility in Singapore.
Syngenta has identified naturally-occuring genes that can help resist drought in corn grown in the temperate region, and plans to introduce them into the germoplasm of tropical corn varieties, Manny Logrono, Syngenta's head for field-crop product development for Asia Pacific, said. He said the new corn hybrids for the farmlands of Asia may be developed within the next three years. Logrono said the basic objective of developing the new hybrids is to minimize loss of yields during droughts. He said the company will use molecular-marker technology to develop the new hybrids. This technology helps develop better seeds in a shorter time as laboratories identify DNA markers that are associated with desirable traits. "We will develop the new hybrids in an environment of moisture stress and test them in drought-prone areas such as India," Logrono said.
Syngenta in July released new corn hybrids in the U.S. that are able to utilize available moisture more efficiently, resulting in higher yields in drought-stressed, dry-land and limited-irrigation areas of the corn belt. The company developed the hybrids through several years of molecular breeding to identify genes from the corn genome that are responsible for managing water use in corn.

Palm off 26-mth top on China; tight supplies a concern
KUALA LUMPUR, Oct 8 (Reuters) - Malaysian palm oil ended off a 26-month high and other vegetable oil markets edged higher as traders bet China would start to restock after the long holidays at a time of possible tight global supplies.
But some traders turned cautious later in the session after news that India would probably cut down on some vegetable oil imports as rapeseed output jumped in a key producing state.

Rapeseed output jump in key Indian state may cut vegoil imports
NEW DELHI, Oct 8 (Reuters) - Rapeseed output in India's top producing state is likely to jump 45 percent this year, cutting cooking oil import needs by at least 5 percent for the world's top buyer in 2010/11, farm and trade officials said on Friday.
The area under cultivation for rapeseed, the main winter-sown oilseed, is likely rise as good monsoon rains give the soil moisture, improving output from last year when the worst drought in nearly four decades ravaged farms.

20101008 1731 FKLI EOD Daily Chart Study.

FKLI last looked : 1479.5, changed : -2 points, volume : lower.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : resume lower, seller taking small exposure.
Support : 1470, 1458, 1445 level.
Resistant : 1485, 1500, 1530 level.
Comment :
Marginally lower FKLI traded side way range bound in quiet volume transaction changed hand following a mix regional market development. Daily chart formed the 3rd continuous doji bar candle with the Bolligner band turning outward with the same old same old side way range bound little upside biased reading.
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.

20101008 1318 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1482.5, changed : +1 point, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : getting lower, buyer defending as seller testing market.
Support : 1470, 1458, 1445 level.
Resistant : 1485, 1500, 1530 level.
Comment :
Tight 5.5 points range market FCPO edge u marginally higher with sleeping volume transaction as market seem struggling to determine its direction following a mixture development over regional market. Hourly chart continue to call for a tight ranging side way market development testing support and resistant level within the Bollinger upper lower band.

20101008 1309 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2782, changed : -4 points, volume : moderate.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakening, buyer taking partial profit.
Support : 2770, 2750, 2720 level.
Resistant : 2800, 2850, 2900 level.
Comment :
Profit taking FCPO eased little lower in moderate volume participation after market opened gap up higher above 2800 psychological level recorded new high followed by profit taking activities press price downwards. Hourly chart wise, price opened above upper Bollinger band and head south doing pullback correction with the reading suggesting a correction range bound upside biased market.

20101008 1226 Local & Global Economics News.

Malaysia: August exports expected to show 13.8% growth
August exports may have expanded although it is likely due to the base effects of low export sales in the same period a year ago, said economists. The strengthening ringgit (against the USD) is also expected to affect the flow of imports, they added. The Ministry of International Trade and Industry will release the data today. (BT)

Japan: says it won’t join currency devaluation race
Japan won’t weaken the Yen to become more competitive with other countries in trade and any currency intervention would be aimed at restraining excessive moves, Vice Finance Minister Fumihiko Igarashi said. Igarashi spoke as Japan’s currency reached its highest against the dollar since 1995, surpassing the level at which the nation’s authorities last month intervened for the first time since 2004. (Bloomberg)

UK: Manufacturing Output Rises More Than Forecast
UK manufacturing rose more than economists forecast in August as Bank of England policy makers debate whether they need to boost stimulus to sustain the recovery. Output climbed 0.3% from the previous month, when it gained a revised 0.4%, the Office for National Statistics said in London. The forecast was for an increase of 0.2%. On the year, production rose 6%, the most since December 1994. (Bloomberg)

UK: Home prices plunge most on record
UK house prices plunged in September by the most since at least 1983, adding to evidence that the housing market faces a renewed slump as the government readies the biggest spending cuts since World War II. The average cost of a home fell 3.6% from August to GBP162,096 (USD258,000). (Bloomberg)

US: Job openings rose in August to 3.2 million
Job openings in the US rose in August as more companies prepared to add staff amid signs demand was holding up, a government report showed. Openings increased by 60,000 to 3.2m, the Labor Department said in Washington. The number of people hired dropped from the prior month and separations also decreased. (Bloomberg)

US: Consumer borrowing falls on drop in credit cards
Consumer borrowing declined in August as Americans trimmed credit-card balances, showing consumers remained reluctant to take on more debt as joblessness climbed. Credit declined by USD3.34b after falling a revised USD4.09b in July, more than the previous estimate, according to a Federal Reserve report released. Credit-card debt decreased for the 24th consecutive month. (Bloomberg)

US: Jobless claims decrease to three-month low
Applications for US unemployment benefits unexpectedly fell last week to the lowest level in three months, indicating the labor market may be thawing. Jobless claims dropped by 11,000 to 445,000 in the week ended 2 October, the fewest since 10 July, Labor Department figures showed. (Bloomberg)

20101008 1225 Malaysia Corporate News.

SC cautions Mudajaya, company also to develop hydro power project in Laos
The Securities Commission (SC) yesterday issued “caution and reminder” to Mudajaya Group and its board to “strictly observe its disclosure obligations” on transactions relating to the company’s investment in an independent power plant (IPP) in India, in particular the transfer of funds between related entities. In a press statement yesterday, the SC said its review of the transactions had concluded that Mudajaya “failed to make adequate disclosures on pertinent matters”. In a separate announcement yesterday, Mudajaya Group has inked a memorandum of understanding (MoU) with the Laos government to develop a nominal 60MW Nam Poui 1 hydroelectric power project with a possible concession period of 30 years, said the company in a filing to Bursa Malaysia. Mudajaya said its wholly owned subsidiary Mudajaya Corp (MCB) had on 6 Oct signed the MoU with the Laos government’s Ministry of Planning and Investment for the production and supply of electricity. Mudajaya said under the MoU, the Laos government would grant MCB the “sole mandate and exclusive right to develop, implement and operate” the project on a build-operate-transfer basis if the project was “feasible in all aspects”. (Financial Daily)

Dialog gets exclusive rights to develop terminal
Dialog Group has been given the exclusive rights to develop an independent deep water petroleum terminal at Pengerang, Johor for a period of 60 years by the State government of Johor. Last June, it had signed an MOU with the Johor state government to own and develop an independent deep water petroleum terminal with harbour port, jetty and other marine facilities. (BT)

TNB wins arbitration against Prai Power
Tenaga Nasional has won an arbitration case against Prai Power SB, ultimately owned by MMC Corp, over payments to keep the capacity of a power plant at a certain level. Prai's claim of more than RM150m was dismissed and it also has to pay TNB more than RM10m following the utility's counterclaim. It also has to pay TNB's travel and other fees related to the arbitration. (BT)

Talam subsidiary sells land in Selangor
Talam Corp, under its wholly owned subsidiary Juara Tiasa SB, has sold a piece of land in Bukit Sentosa in Serendah, Selangor, for RM28.5m. The freehold land is designated for use as a private institution, hostel and club, including related structures. In a statement to Bursa Malaysia, Talam said the proceeds will be used to settle outstanding loan facilities. (BT)

Proton recalls cars
Proton Holdings has announced a voluntary recall of its Gen2 and Satria Neo cars manufactured between 2004 and 2008 due to a clock spring malfunction that raised safety concerns. The recall, which is part of Proton’s Global Quality Assurance programme, affects 15,911 or 2% of 660,000 cars produced and sold over that period. The clock spring connects switches and airbag to the radio, horn and cruise control. (StarBiz) 

20101008 1208 Global Market News.

Oil erases weekly gain; stimulus in doubt on jobs data
SINGAPORE, Oct 8 (Reuters) - Oil slipped a few cents, erasing gains for the week, on speculation the U.S. jobs market may have emerged from a soft patch, putting into question the urgency of further monetary stimulus.
"The dollar is the key short-term factor and the reinstatement of the linkage with the dollar will stay for a while yet," JP Morgan oil analysts led by Lawrence Eagles said, referring to the inverse relation between the U.S. currency and oil, which becomes dearer to most as the greenback strengthens.

Profit taking precedes US payrolls, G7
HONG KONG, Oct 8 (Reuters) - Investors took profits on Asian equities and gold while also buying back some U.S. dollars, squaring up before the latest U.S. employment report and potentially contentious international meetings about currencies.
"Positioning could limit the degree of dollar downside, particularly against the euro," Todd Elmer, currency strategist with Citi in Singapore, said in a note.

COMMODITY MARKETS: Gold, commods fall as dollar rises on job hopes
NEW YORK, Oct 7 (Reuters) - Most commodities fell on Thursday after signs of a possible improvement in U.S. jobs boosted the dollar, pushing gold off a record high for its biggest one-day loss in two months.
"The gold market has been overdone, and we have gone so far in such a short period of time, so a correction is inevitable," said Bruce Dunn, vice president of trading at Auramet Trading.

GLOBAL MARKETS: Dollar rebounds, gold falls before US jobs data
NEW YORK, Oct 7 (Reuters) - The U.S. dollar rebounded after sliding to a 15-year low versus the Japanese yen and commodity prices erased gains that pushed gold to yet another new high on Thursday as traders bet momentum had swung too far, too fast.
"It's been the same story, the dollar goes down, assets are all inflated -- gold, oil, stocks," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.

OIL: Crude erases weekly gain; stimulus in doubt on jobs data
SINGAPORE, Oct 8 (Reuters) - Oil fell on Friday, erasing gains for the week, as the dollar strengthened on speculation the U.S. jobs market may have emerged from a soft patch, putting into question the urgency of further monetary stimulus.
New U.S. claims for jobless benefits hit a near three-month low last week, a report showed on Thursday, suggesting some let up in labor market distress ahead of a monthly report due later on Friday that is expected to show non-farm payrolls were unchanged in September.

U.S. private sector job cuts raise Fed easing chance
NEW YORK, Oct 6 (Reuters) - U.S. private employers unexpectedly shed jobs in September, reinforcing the conviction that the U.S. Federal Reserve as early as next month will embark on another round of monetary policy stimulus to support the economic recovery.
ADP's national employment report on Wednesday said U.S. private employer payrolls fell by 39,000 jobs in September. The median forecast from a Reuters poll was for an increase of 24,000 jobs.

PRECIOUS-Gold hits record, set for best week in six months
LONDON, Oct 7 (Reuters) - Gold rose to a third successive record high on Thursday, putting it on track for its strongest weekly performance in six months, as expectations for the Federal Reserve to prop up the economy undermined the dollar.
"We look at the reasons for holding gold and other precious metals and, above everything else, it is the idea of a store of value to protect against currency debasement," said Natixis strategist Nic Brown.

FOREX-Dollar falls on policy, imbalance concerns
LONDON, Oct 7 (Reuters) - The dollar's downtrend gathered pace on Thursday as it slid to a 15-year low versus the Japanese yen and an all-time low against the Swiss franc on the prospect of more money-printing by the U.S. Federal Reserve.
"The only story out there at the moment is what the implications of another massive surge of QE means for the dollar and global imbalances," said Maurice Pomery, managing director of Strategic Alpha.

World stocks hit 5-month peak; dollar tumbles
LONDON, Oct 7 (Reuters) - Malaysian palm oil hit a near 17-month high on Thursday as traders bet the weak dollar may spur more demand for U.S. priced vegetable oil from top buyers China and India.
The dollar held near a 15-year low on expectations the U.S. Federal Reserve will shift towards a looser monetary policy and spur another round of quantitative easing -- a scenario that has supported equity and commodity markets.

20101008 1200 Soy Oil & Palm Oil Related News.

Chinese buying lifts soy ahead of key U.S. report
SINGAPORE, Oct 8 (Reuters) - U.S. soybean futures jumped 1.3 percent to a one-week top as buying by Chinese traders after a week-long holiday buoyed the market amid expectations of lower output in Brazil and Argentina.
"It seems that with the Chinese market back open it is clearly bringing in some Asian buying in the run-up to the USDA report," said Adam Davis, senior commodity analyst at Merricks Capital, a Melbourne-based fund manager that invests in agriculture.

U.S. Harvest-Iowa soybeans pile up as storage runs out
CHICAGO, Oct 7 (Reuters) - A torrent of freshly harvested soybeans are flooding Iowa, forcing some grain elevators in the top soy-producing state to store the oilseed on the ground, trade sources said on Thursday.
A rapid harvest that followed fast maturation of the crop and ideal weather for running combines have put more than the usual amount of soybeans into the supply pipeline.

Soy product futures ended higher following soybeans, with soyoil the upside leader. Soyoil climbed despite the bearish influence of lower crude oil futures amid strong underlying export demand. "In the past six months bio-diesel production has climbed 92% from a year ago in Argentina and 64% in Brazil, and this elevated bio-diesel production in South America has impacted other markets, the main one being vegetable oil exports," said MaxYield commodity trade advisor Karl Setzer. "Many importers who used to go to South America for soy oil needs are now coming to the United States," he added. December soyoil settled 0.34 cents or 0.8% higher at 44.12 cents per pound. December soymeal ended $0.40 or 0.1% higher at $296.20 per short ton.(Source: CME)

Brazil Farmers Poised To Plant Record Soybean Crop (Source: CME)
Brazil's farmers have just started planting what could turn out to be a record soy crop for the second successive year, but strong demand from countries like China means the extra beans aren't likely to contribute to pressure on prices. Brazil--the world's second-largest soybean producer after the U.S.--is likely to produce more than 69 million metric tons in the upcoming harvest season, topping the 68.5 million tons from last season's crop. Strong demand from importers such as China has kept international prices high, trading above $10 a bushel in recent months, and Eduardo Godoi, an analyst at consultancy Agrural, said that has encouraged Brazil's farmers to plant more land with soybeans and use more inputs such as fertilizer. Godoi sees the crop hitting 69.8 million tons, based on 24.1 million hectares of land planted. Earlier this week, another local consultancy Celeres said it expects 69.1 million tons to be produced.
Although a bumper crop could threaten to lower soybean prices in the months ahead, Steve Cachia, an analyst at consultancy Cerealpar, believes that the hike in output is unlikely to alter prices on the Chicago Board of Trade or in the local market. An extra one million tons of beans from Brazil from the next crop is minimal in the global market, and demand from countries such as China should soak that up, Cachia said. Soy prices have remained high in August and September and farmers have been selling large quantities of their remaining old beans and locking in prices for the new beans from the crop that will be harvested in 2011. Indeed, farmers have already agreed to sell 26% of the 2010-11 soybean crop as of Sept. 31, compared to 18% at the end of August and 11% from the same time a year ago, according to Agrural's Godoi. Still, the main risk on the horizon is the effect of the La Nina weather phenomenon in the months ahead, which can cause prolonged periods of dry weather and loss of crops.
Cooler surface  waters off the coasts of South America generally leads to lower rainfall in Brazilian farmland. However, rains fell at the end of September in Mato Grosso and the southern state of Parana, the country's No. 2 soy producer, allowing farmers there to plant their beans in soft, wet soil. Cachia said that there could still be problems in southern Brazil, if there isn't enough rain during the growing period between January through March, as happened in 2008-09.

MPOB Cuts 2010 CPO Output Forecast To Steady Vs 2009 (Source: CME)
Malaysia's crude palm oil output this year will likely be unchanged from 17.6 million metric tons last year, the director-general of the government-linked Malaysian Palm Oil Board said. The MPOB trimmed its previous forecast for a slight output gain due to "bad weather, heavier-than-usual rain that has disrupted harvesting, and stagnant palm oil extraction rates," Mohd. Basri Wahid said on the sidelines of an event. This would be the third consecutive year of zero output growth for Malaysia, the world's second-largest palm oil producer after Indonesia. Though Mohd. Basri didn't give his prediction on CPO prices, slower production growth could catalyse a rise in prices. Palm oil futures on Malaysia's derivatives exchange have risen 4% since the start of the year. The benchmark December contract on Bursa Malaysia Derivatives was trading MYR47 higher at MYR2,777/ton, after rising as much as 2% to MYR2,788/ton, its highest level since May 2008.
Wet weather amid stagnant palm oil extraction rate may curb output towards the end of this year, Mohd. Basri said, even though the oil palm replanting plan is slower than expected. He said the country had only achieved 31%, or 139,000 hectares, of its replanting target of 200,000 hectares announced in 2008, as some planters probably delayed felling of old trees due to high prices. The replanting plan was part of the Government's plan to support prices of palm oil that declined to as low as MYR1,331/ton late 2008, as cutting down 200,000 hectares of old palm trees would have reduced 700,000 tons of palm oil annually. About MYR1,000 is given for a hectare that is replanted. Mohd. Basri said Malaysia may only replant 80,000 hectares in 2010. Many among trade participants said palm oil prices may reach MYR3,000/ton towards the end of the year as above-average rainfall, associated with the La Nina weather condition, may cause floods,
slow harvesting and affect transportation of fresh fruit bunches and extracted oils. While oil palm trees thrive in moist conditions, rising soil moisture can reduce yields.

US corn, soy rise ahead of key USDA report
SYDNEY, Oct 7 (Reuters) - U.S. corn, soybean and wheat futures posted modest gains on Thursday, supported by a weak dollar, although volumes were light ahead of a key U.S. supply/demand report due for release on Friday.
Markets are treading water ahead of the U.S. Department of Agriculture's (USDA) October world agricultural supply and demand estimates (WASDE) report due for release at 1230 GMT on Friday.

Palm at 1-year top on strong demand hopes
KUALA LUMPUR, Oct 7 (Reuters) - Malaysian palm oil hit a near 17-month high on Thursday as traders bet the weak dollar may spur more demand for U.S. priced vegetable oil from top buyers China and India.
The dollar held near a 15-year low on expectations the U.S. Federal Reserve will shift towards a looser monetary policy and spur another round of quantitative easing -- a scenario that has supported equity and commodity markets.

POLL-Malaysia's Sept palm oil stocks at 7-month high
KUALA LUMPUR Oct 7 (Reuters) - Malaysia's Septemberpalm oil stocks probably hit a seven-month high as slightly higher output and imports outpaced overseas and local demand, a Reuters poll showed on Thursday.
Inventories in the world's No. 2 palm producer probably rose 2.5 percent to 1.77 million tonnes, slowing its pace from the 22.6 percent jump in August, a median of five planters showed.

Soyoil to soar in 2011 on food, biofuel demand
MINNEAPOLIS, Oct 6 (Reuters) - Soaring demand for vegetable oils used in food and biofuel will send U.S. soybean oil prices to highs not seen since 2008 despite rising supplies of soyoil and competing palm oil, a renowned oilseed analyst said.
U.S. soyoil futures will reverse recent declines and climb to fresh highs above 45 cents per lb by early 2011, while other edible oils are also poised to appreciate, Thomas Mielke, executive director of Oil World, said on Wednesday.