20101011 1820 FCPO EOD Daily Chart Study.

FCPO closed : 2930, changed : +170 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : getting higher, long live the buyer.
Support : 2900, 2850, 2800 level.
Resistant : 3020, 3050, 3070 level.
Comment :
Friday limit up soy oil futures price after USDA announcement lead FCPO to rallied recorded huge gain and breaking new high in ultra high volume changed hand. Daily chart wise, today up bar candle ended way above upper Bollinger band level hinted a possible pullback correction with the underlying market having strong upside biased reading.
When to buy : buy at support and weakness with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

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.