Stocks, euro climb as Greece votes for austerity
HONG KONG, June 30 (Reuters) - Asian stocks climbed on Thursday as investors breathed a sigh of relief after Greece moved a step closer to avoiding a default by adopting harsh austerity measures, a move that boosted the euro and sparked a broad rebound in risky assets.
"Most investors are cautious, if not outright negative, and light on risk," said Goldman strategists in a note to clients.
Limited Downside Ahead of USDA Report, Says Grains Analyst
Following a steep selloff, there is little room to the downside for grains ahead of USDA report on plantings and harvest forecasts, says Terry Roggensack of the Hightower Report.
Corn rises for 3rd day, wheat firm ahead of USDA report
SINGAPORE, June 30 (Reuters) - U.S. corn futures gained nearly 1 percent on Thursday, rising for a third straight session, while soybeans added 0.4 percent on growing concerns over crops amid strong demand.
"The focus now is more on soybeans and corn, soy plantings may come short of overall estimates," said Ker Chung Yang, an agricultural commodities analyst at Phillip Futures in Singapore.
Indonesia yet to decide on more rice imports for 2011 -official
JAKARTA, June 30 (Reuters) - Indonesia is yet to decide on whether to import more rice or not this year, a senior official at the trade ministry said on Thursday.
On Wednesday, traders and a state-run newspaper said Indonesia has been in talks to import between 400,000 and 600,000 tonnes of rice from Vietnam to capitalise on lower prices, with shipment possible in the third quarter of this year.
Mexico publishes rules for sugar import quota
MEXICO CITY, June 29 (Reuters) - Mexico published the first set of rules for a 150,000-tonne sugar import quota on Wednesday in a bid to stabilize prices and ensure supply through the end of the year.
The Economy Ministry initially announced the quota on May 25. The Official Gazette published the guidelines for a 135,000-tonne tranche of the quota on Wednesday and the remaining 15,000 tonnes, reserved for Nicaragua, will be covered in a later publication this week, an Economy Ministry spokesman said.
Floods, rains cast shadow over U.S. crop prospects
CHICAGO, June 29 (Reuters) - Flooding in key farming areas of the United States has begun to damage corn and soybean crops, and is raising concerns about this fall's harvest at a time when supplies are tight, analysts said on Wednesday.
Floods likely prevented North Dakota farmers from planting 6 million acres of cropland this spring, said Drew Lerner president and senior agricultural meteorologist of World Weather Inc.
Kenya coffee sales volumes drop in H1 2010/11 season
NAIROBI June 29 (Reuters) - Kenya's Nairobi Coffee Exchange said on Wednesday the total volume of beans sold at its weekly auction in the first half of the 2010/11 crop year fell 7.6 percent to 323,837 60-kg bags from 351,117 bags the same period a year ago.
In its latest quarterly report, the Kenya Coffee Traders Association (KCTA) that runs the auction blamed the dip in volumes on bad weather.
Brazil cocoa arrivals dip due to bank holiday
BRASILIA, June 29 (Reuters) - Cocoa arrivals in Brazil's main cocoa state Bahia slumped in the last week, most likely due to a bank holiday which practically halved the working week for many, data from Bahia Commercial Association showed.
Bahia-based cocoa analyst Thomas Hartmann said one large local grinder had not yet reported its arrivals figures and an estimated value had been used instead, meaning the data could later be revised.
Brent stays above $112 on Greece vote, tight US stocks
SINGAPORE, June 30 (Reuters) - Brent held above $112 on Thursday, buoyed by tighter U.S. oil stocks and a weaker dollar after an initial favourable vote on austerity measures by Greece's parliament, but concerns that the IEA may decide to release more oil next month capped gains.
"The market is still assessing the release of emergency stocks by the IEA," he said
US April fuel exports highest on record -EIA
CALGARY, June 29 (Reuters) - U.S. fuel exports surged to the highest level on record in April, buoyed by a swooping rise in distillate exports to Latin American countries, government data showed on Wednesday.
Total finished petroleum products exports rose about 217,000 barrels-per-day in April compared with the previous month and reached a record high of 2.42 million bpd, according to data from the U.S. Energy Information Administration.
US oil demand drops in April, first since Nov 2009
WASHINGTON, June 29 (Reuters) - U.S. oil demand in April was weaker than previously projected, with monthly oil consumption posting its first year-over-year drop since November 2009, the U.S. government said on Wednesday.
April petroleum demand fell to 18.613 million barrels per day, down 1.57 percent from a year earlier, the Energy Information Administration said in its petroleum supply report.
LME Copper steadies after Greek vote
SHANGHAI, June 30 (Reuters) - LME copper steadied on Thursday after early profit taking following its biggest one-day rally in more than two weeks after the Greek parliament voted to accept austerity measures.
"LME copper prices are going through a normal technical downturn," Shanghai Dongzheng futures analyst Du Xiao Hua said.
Gold inches up on weak dollar after Greek vote
SINGAPORE, June 30 (Reuters) - Gold gained for a third straight session on Thursday, as an initial favourable vote on austerity measures by Greece's parliament weighed on the dollar, but low speculative interest and physical demand may cap gold's upside in the short term.
"If Greece passes the bill, we may see gold test higher tonight," said a Hong Kong-based trader, but added that the upside could be limited at $1,520, the 50-day moving average.
Thursday, June 30, 2011
20110630 1831 FCPO EOD Daily Chart Study.
FCPO closed : 3072, changed : -37 points, volume : higher.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : recovering, seller reducing exposure.
Support : 3070, 3050, 3020, 2970 level.
Resistance : 3100, 3150, 3200, 3250 level.
Comment :
FCPO closed recorded loss with better volume changed hand while overnight soy oil closed higher and currently trading firmer.
Over supply fear rise again after export data showing improvement but just insignificant enough to overcome picking up production level. Additional to that tonight USDA report also another factor to monitor closely.
Daily chart formed a down bar candle closed nearer to lower Bollinger band level after market opened higher, traded range bound, followed by last 2 hours plunge fall lower tested below support level and recovered upward slightly to closed above 3070 support level.
Chart reading suggesting a correction range bound downside biased market development testing support and resistance level with today's candle formed a bearish engulfing pattern.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with larger cut loss and profit target.
20110630 1736 FKLI EOD Daily Chart Study.
FKLI closed : 1577.5 changed : +1.5 point, volume : lower.
Bollinger band reading : upside biased with possible pullback correction.
MACD Histrogram : rising, buyer patrolling.
Support : 1565, 1550, 1540, 1530 level.
Resistance : 1580, 1590, 1600, 1610 level.
Comment :
Expired Jun 2011 FKLI contract closed recorded small gain with lower volume exchanged with July 2011 contract doing about 2 points premium compare to cash market that closed at all time high recorded gain while Asia and European market closed and trading in positive territory with overnight U.S. market closed firmer.
Result of Greek vote eases concern on possible default put some relief among investors for the near term with market reacted positively to the news.
Daily chart formed a small body up doji bar candle closed right at upper Bollinger band after market opened 1 tick higher, moved side ways within a narrow 4.5 points range bound market toward the end to closed near opening price.
Technical reading remained suggesting an upside biased market development with possible pullback correction testing support and resistance level.
When to buy : buy at support or weakness with moderate cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20110630 1519 Global Economic Related News.
Vietnam: Economic growth accelerates as domestic demand gains
Vietnam’s economic growth accelerated this quarter as domestic demand grew, sustaining pressure on policy makers to contain inflation that’s among the fastest in the world. Gross domestic product climbed 5.67% from a year earlier in the second quarter, according to a preliminary estimate released by the General Statistics Office in Hanoi yesterday. That compares with a previously reported 5.43% for the first three months. The economy grew 5.57% in the six months through June, from a revised 6.18% in the first half of 2010. (Bloomberg)
Japan: Factory output rises at the fastest pace since 1953
Japan’s industrial production rose at the fastest pace in more than 50 years, led by carmakers as they restored operations at plants after a record earthquake and tsunami on 11 March. Factory output increased 5.7% in May from April, the biggest gain since 1953, the Trade Ministry said in Tokyo yesterday. Output in the transportation industry advanced 36% from the previous month as automakers including Toyota Motor Corp. and Nissan Motor Co. restarted production lines. (Bloomberg)
EU: Greek austerity plan approved by 155 votes to 138 votes
Greek Prime Minister George Papandreou won approval of his EUR78bn package of budget cuts and asset sales, key to receiving further international financial aid. A total of 155 lawmakers in the 300-strong chamber supported the law and 138 against, Parliament Speaker Filippos Petsalnikos said in remarks carried live on state-run Vouli TV yesterday. (Bloomberg)
EU: June economic confidence drops to lowest in 8 months
European confidence in the economic outlook dropped to the lowest in eight months in June as policy makers struggled to craft a second bailout package for Greece. An index of executive and consumer sentiment in the 17- nation euro region fell to 105.1 from 105.5 in May, the European Commission in Brussels said yesterday. That’s the lowest since October.(Bloomberg)
UK: Mortgage approvals increased less than forecast in May
UK mortgage approvals rose less than economists forecast in May, underlining the fragility of the housing market as the economy struggles to gain momentum. Lenders granted 45,940 loans to buy homes, compared with 45,447 the previous month, the Bank of England said today in London. The figures reflect the weakness of consumer confidence as accelerating inflation reduces Britons’ spending power at the fastest pace since the 1970s and concerns about job security mount. Banks are also curbing lending as they rebuild their balance sheets. (Bloomberg)
US: Pending sales of US existing homes increased 8.2% in May
The number of contracts to buy previously owned US homes rose almost three times as much as forecast as falling prices made properties more affordable. The surprising 8.2% increase in the index of pending home resales from April followed a revised 11% drop the prior month, the National Association of Realtors said yesterday in Washington. While the measure of contract signings has been volatile this year, last month’s index level is 0.1 point lower than the January figure, indicating residential real estate has made little headway. Foreclosures, unemployment at 9.1% and stringent loan terms are holding back demand even as a decline in home prices attracts some buyers. (Bloomberg)
Vietnam’s economic growth accelerated this quarter as domestic demand grew, sustaining pressure on policy makers to contain inflation that’s among the fastest in the world. Gross domestic product climbed 5.67% from a year earlier in the second quarter, according to a preliminary estimate released by the General Statistics Office in Hanoi yesterday. That compares with a previously reported 5.43% for the first three months. The economy grew 5.57% in the six months through June, from a revised 6.18% in the first half of 2010. (Bloomberg)
Japan: Factory output rises at the fastest pace since 1953
Japan’s industrial production rose at the fastest pace in more than 50 years, led by carmakers as they restored operations at plants after a record earthquake and tsunami on 11 March. Factory output increased 5.7% in May from April, the biggest gain since 1953, the Trade Ministry said in Tokyo yesterday. Output in the transportation industry advanced 36% from the previous month as automakers including Toyota Motor Corp. and Nissan Motor Co. restarted production lines. (Bloomberg)
EU: Greek austerity plan approved by 155 votes to 138 votes
Greek Prime Minister George Papandreou won approval of his EUR78bn package of budget cuts and asset sales, key to receiving further international financial aid. A total of 155 lawmakers in the 300-strong chamber supported the law and 138 against, Parliament Speaker Filippos Petsalnikos said in remarks carried live on state-run Vouli TV yesterday. (Bloomberg)
EU: June economic confidence drops to lowest in 8 months
European confidence in the economic outlook dropped to the lowest in eight months in June as policy makers struggled to craft a second bailout package for Greece. An index of executive and consumer sentiment in the 17- nation euro region fell to 105.1 from 105.5 in May, the European Commission in Brussels said yesterday. That’s the lowest since October.(Bloomberg)
UK: Mortgage approvals increased less than forecast in May
UK mortgage approvals rose less than economists forecast in May, underlining the fragility of the housing market as the economy struggles to gain momentum. Lenders granted 45,940 loans to buy homes, compared with 45,447 the previous month, the Bank of England said today in London. The figures reflect the weakness of consumer confidence as accelerating inflation reduces Britons’ spending power at the fastest pace since the 1970s and concerns about job security mount. Banks are also curbing lending as they rebuild their balance sheets. (Bloomberg)
US: Pending sales of US existing homes increased 8.2% in May
The number of contracts to buy previously owned US homes rose almost three times as much as forecast as falling prices made properties more affordable. The surprising 8.2% increase in the index of pending home resales from April followed a revised 11% drop the prior month, the National Association of Realtors said yesterday in Washington. While the measure of contract signings has been volatile this year, last month’s index level is 0.1 point lower than the January figure, indicating residential real estate has made little headway. Foreclosures, unemployment at 9.1% and stringent loan terms are holding back demand even as a decline in home prices attracts some buyers. (Bloomberg)
20110630 1229 Malaysia Corporate Related News.
KLCI chart reading :
upside biased with possible pullback correction.
PLUS privatization on track
The privatization of the country’s largest toll road operator, PLUS Expressways, is set to be concluded by this Sept, and minority shareholders will receive full cash payment. They will receive and advance payment of 15 sen, in the form of an interim dividend to be paid on 29 July 2011, and RM4.45 when the transaction is completed for a total of RM4.60 per share. (Financial Daily)
MRCB enters into MoU with Korean union
Malaysian Resources Corp (MRCB) has signed a strategic alliance memorandum of understanding (MoU) with the Korean Teachers Credit Union (KTCU) to collaborate on potential future property projects. The KTCU is a Korean government guaranteed welfare agency, with the aim of protecting the welfare and livelihood of teachers and employees in the country’s education system. The KTCU currently invests in two real estate funds for two projects in MRCB’s KL Sentral development, namely Tower 2 Lot G and Q Sentral, with a total investment value of RM660m. (Financial Daily)
Bank Muamalat, Pos Malaysia in talks to widen network
Bank Muamalat Malaysia is in talks with Pos Malaysia to explore potential avenues to strengthen the bank’s presence by leveraging on the national postal company’s national network. Bank Muamalat CEO Datuk Redza Shah Abdul Wahid said Pos Malaysia would offer a natural extension to the bank’s operations with its extensive postal network in the country. (Financial Daily)
Press Metal offers Sumitomo stake in second smelter
Press Metal (PMB) has offered Japan's Sumitomo Corp a stake in its second aluminum smelter in Samalaju, Sarawak, to help fund the project. Other parties have expressed interest in the second plant but PMB is giving Sumitomo the first option because it is already partnering the Japanese firm in its first smelter. Last Sept, Sumitomo took a 20% stake in PMB's subsidiary, Press Metal Sarawak SB (PMS), which is building a 120k tonnes per year plant in Mukah with a total investment of RM60.4m. (BT)
GAB to cut back exports to cope with rising costs
Guinness Anchor (GAB) says rising material cost is forcing it to significantly scale down exports of selected brands but it is not likely to hike prices as a result. MD Charles Ireland said the company will begin cutting down certain export stock-keeping units or SKU next month. About 20-30% of GAB's 150 SKUs is for the export and duty-free market but contributions from these segments have been flat. It is learnt that GAB's export and duty-free segment contribute just over 10% to the group. (BT)
Short term rates to remain stable: BNM
Short-term rates are expected to remain stable today as Bank Negara will issue 12 tenders to absorb excess liquidity from the financial system today. The central bank estimated huge liquidity amounting to RM40.279 billion in the conventional system and RM17.218 billion in Islamic funds. Bank Negara will issue conventional tenders of RM2.5 billion for six days, RM2.5 billion for 11 days, RM1 billion for 14 days, RM1 billion for 20 days and RM500 million for 33 days. (Business Times)
Ringgit reverses losses on bond demand
Malaysia’s ringgit rose for a third day, reversing earlier losses for this quarter, as improving sentiment toward emerging-market assets attracted global investors to the nation’s debt. Greek lawmakers passed budget-austerity measures yesterday in the first step to win more financial aid from the European Union and avert the region’s first sovereign default. Demand rose at Malaysia’s government bond sales this week on speculation foreign investors added to holdings that are at a record. (Business Times)
Yinson jumps to 13-year high on vessel job
Yinson Holdings Bhd, a Malaysian transport group, rose to its highest level in more than 13 years after saying its contract to provide an offshore support vessel to Petro Vietnam Technical Service is valued at US$331.2 million over 20 years. The stock gained 1.1 per cent to RM1.90 at 9:19 a.m. local time in Kuala Lumpur trading, set for its highest close since October 1997. (Business Times)
Steel sector upgraded to "overweight"
OSK Research Sdn Bhd has upgraded the Malaysian steel sector to an "overweight" amid merger and acquisitions and iron ore concession news set to add glow to the industry. "We are turning positive on the steel sector and believe the merger and acquisition fever within the sector, and news of iron ore mining concessions being up for grabs soon may create a new theme play in the market," it said in a research note today. Recent reports of China's Baosteel being in talks to buy a stake in Amsteel Mills have inadvertently sparked off a merger and acquisition fever in the Malaysian steel sector. (Business Times)
Hiap Teck slides to 23-month low
Hiap Teck Venture Bhd, a Malaysian steel products manufacturer, dropped to a 23-month low in Kuala Lumpur trading after fiscal third-quarter profit dropped 68 per cent from a year earlier to RM5.42 million. The stock slid 1.6 per cent to 93 sen at 9:06 a.m. local time, set for its lowest close since July 17, 2009. (Business Times)
Kinsteel rises after upgrade to 'neutral'
Kinsteel Bhd, a Malaysian steelmaker, rose to a one-month high in Kuala Lumpur trading after the stock was upgraded to “neutral” from “sell” at OSK Research Sdn Bhd. Its shares climbed 1.4 per cent to 73 sen at 9:19 a.m. local time, set for their highest close since May 27. (Business Times)
Record-breaking RM6bil sukuk sold
PETALING JAYA: Malaysia successfully concluded the sale in two tranches totalling US$2bil (RM6.06bil) of sukuk wakala in the early hours of Wednesday in deals which saw a surprisingly high subscription rate given the uncertainties in the global credit markets and the gloomier global economic outlook. (The Star)
KL market at all-time high on positive news
PETALING JAYA: The FBM KLCI yesterday surpassed its all-time high of 1,574.49 on Jan 17, as investor sentiment was buoyed by Wall Street’s sharp rise on Tuesday, which was reflective of the growing optimism for a potential viable solution to Greece’s debt crisis. (The Star)
KNM aims for RM3.4bil in new orders
SERI KEMBANGAN: KNM Group Bhd, which has an order backlog of RM5.5bil, expects to secure at least 20% of the RM17bil worth of projects it is tendering, according to executive chairman/CEO Lee Swee Eng.(The Star)
Eversendai wins new RM139mil Qatar job
PETALING JAYA: Eversendai Corp Bhd announced that it has secured a new contract in Qatar worth 165 million riyals (RM139mil), just one day before listing on Bursa Malaysia.(The Star)
Satang-RMAF contract extended
PETALING JAYA: Satang Holding Bhd told Bursa Malaysia yesterday that the Defence Ministry had extended for two years the former subsidiary’s contract for the supply of non-proprietary spare parts, components and any related equipment for aircraft of the Royal Malaysian Air Force.(The Star)
Formis says will consider adding Ho Hup stake
PETALING JAYA: Information technology services provider Formis Resources Bhd (FRB) may consider increasing its stake in Practice Note (PN) 17 firm, Ho Hup Construction Co Bhd, for the right price, said FRB chairman Tan Sri Megat Najmuddin Megat Khas.(The Star)
Maybank unit to buy ATR KimEng
PETALING JAYA: Kim Eng Holdings Ltd, a subsidiary of Malayan Banking Bhd (Maybank), is looking to buy 344.4 million shares, or a 32.24% stake, in securities broking, investment banking and corporate finance advisory firm ATR KimEng Financial Corp from ATR Holdings Inc for S$40.64mil (RM100mil). (The Star)
BCorp Q4 net profit 28% lower
PETALING JAYA: Berjaya Corp Bhd’s (BCorp) net profit for its fourth quarter ended April 30 dropped by 27.9% to RM103.6mil against the same quarter last year due to the impairment in value of certain property, plant and equipment, loss on disposal of certain investments and loss on dilution of interest in a subsidiary company as well as share of losses from jointly controlled entities. (The Star)
Jaycorp Q3 net profit down 67%
PETALING JAYA: Furniture manufacturer Jaycorp Bhd saw its third quarter ended April 30 net profit drop 67% to RM705,000 from RM2.11mil a year ago owing to a weak US dollar, higher production cost and sluggish economic conditions in its importing countries. (The Star)
Leader sees revenue from US$107mil Cambodia project
GEORGE TOWN: Leader Universal Holdings Bhd will be able to generate partial revenue from its US$107mil build-operate-own power transmission concession project in Cambodia in the third quarter of this year. (The Star)
20110630 1207 Global Market & Commodities Related News.
GLOBAL MARKETS: Greek vote boosts markets; commodities rise
NEW YORK, June 29 (Reuters) - World stocks rose for the third straight day and oil prices jumped on Wednesday after Greece's parliament approved the first of two austerity measures aimed at preventing the country from going bankrupt. "Certainly the fear that Greece is going to default now has subsided," said Ken Polcari, managing director of ICAP Equities in New York. "Although it is still not a done deal -- but the fact is, it is certainly moving along, so that is obviously positive."
OIL: Oil jumps 3 pct on U.S. stock draws, Greek vote
NEW YORK, June 29 (Reuters) - Oil jumped as much as 3 percent on Wednesday, ending at the highest level in a week, as sharp drawdowns in U.S. crude and gasoline stocks fed a rally spawned when Greece passed an austerity plan to avoid a sovereign debt default. "The oil market has been wrong-footed by the crude withdrawal, which is at least twice as big as people had expected," said Addison Armstrong, market research senior director at Tradition Energy in Stamford, Connecticut.
NATURAL GAS: Natural gas ends lower, weather limits loss
NEW YORK, June 29 (Reuters) - U.S. natural gas futures ended lower on Wednesday, as technical selling after three straight session gains was partly offset by warm U.S. weather forecasts for the next week that should translate into stronger demand. "I think this was just a little back filling after yesterday's strong settle (July expiration), but there's still plenty of heat around," a Texas-based trader said.
COMMODITIES: Rally enters day 2 on Greece vote, US fuel demand
NEW YORK, June 29 (Reuters) - Commodities rallied for a second day on Wednesday, as the dollar fell after Greece cleared a critical hurdle to its debt bailout and U.S. fuel demand rose, emboldening investors who fled the sector just days ago. "The oil market has been wrong-footed by the crude withdrawal, which is at least twice as big as people had expected," said Addison Armstrong, market research senior director at Tradition Energy in Stamford, Connecticut.
Qatar keeps August crude supply to Asia steady-source
TOKYO, June 30 (Reuters) - Qatar, one of OPEC's smallest producers, has notified at least one Asian buyer that it will supply Marine and Land crude at full contracted volumes for August, unchanged from July levels, a trade source said on Thursday.
It has been supplying both grades at full contracted volumes since August 2009.
US 2010 oil refining capacity highest in 29 years-EIA
WASHINGTON, June 29 (Reuters) - U.S. oil refining capacity increased to its highest level in nearly three decades during 2010, but refining operations remain well below historical highs seen in the 1990s, the Energy Information Administration said Wednesday.
There were 148 refineries operating in the U.S. at the beginning of 2011 with a capacity to produce 17.7 million barrels of petroleum products a day, up 0.9 percent, or 152,000 barrels per day, from the pervious year, the EIA said.
Europe oil stocks sale begins, market confused
HAMBURG/LONDON, June 29 (Reuters) - Sales of emergency oil stocks began in Europe on Wednesday, as part of a plan by consuming nations to cool prices, but traders complained about confusing signals from different countries and industry lobbies warning of price spikes.
The West's energy watchdog, the International Energy Agency, shocked energy markets last week by announcing the release of 60 million barrels of oil and products to compensate for the loss of Libyan crude. The aim was to prevent high oil prices from hitting a fragile economic recovery.
US oil demand drops in April, first since Nov 2009
WASHINGTON, June 29 (Reuters) - U.S. oil demand in April was weaker than previously projected, with monthly oil consumption posting its first year-over-year drop since November 2009, the U.S. government said on Wednesday.
April petroleum demand fell to 18.613 million barrels per day, down 1.57 percent from a year earlier, the Energy Information Administration said in its petroleum supply report.
NEW YORK, June 29 (Reuters) - World stocks rose for the third straight day and oil prices jumped on Wednesday after Greece's parliament approved the first of two austerity measures aimed at preventing the country from going bankrupt. "Certainly the fear that Greece is going to default now has subsided," said Ken Polcari, managing director of ICAP Equities in New York. "Although it is still not a done deal -- but the fact is, it is certainly moving along, so that is obviously positive."
OIL: Oil jumps 3 pct on U.S. stock draws, Greek vote
NEW YORK, June 29 (Reuters) - Oil jumped as much as 3 percent on Wednesday, ending at the highest level in a week, as sharp drawdowns in U.S. crude and gasoline stocks fed a rally spawned when Greece passed an austerity plan to avoid a sovereign debt default. "The oil market has been wrong-footed by the crude withdrawal, which is at least twice as big as people had expected," said Addison Armstrong, market research senior director at Tradition Energy in Stamford, Connecticut.
NATURAL GAS: Natural gas ends lower, weather limits loss
NEW YORK, June 29 (Reuters) - U.S. natural gas futures ended lower on Wednesday, as technical selling after three straight session gains was partly offset by warm U.S. weather forecasts for the next week that should translate into stronger demand. "I think this was just a little back filling after yesterday's strong settle (July expiration), but there's still plenty of heat around," a Texas-based trader said.
COMMODITIES: Rally enters day 2 on Greece vote, US fuel demand
NEW YORK, June 29 (Reuters) - Commodities rallied for a second day on Wednesday, as the dollar fell after Greece cleared a critical hurdle to its debt bailout and U.S. fuel demand rose, emboldening investors who fled the sector just days ago. "The oil market has been wrong-footed by the crude withdrawal, which is at least twice as big as people had expected," said Addison Armstrong, market research senior director at Tradition Energy in Stamford, Connecticut.
Qatar keeps August crude supply to Asia steady-source
TOKYO, June 30 (Reuters) - Qatar, one of OPEC's smallest producers, has notified at least one Asian buyer that it will supply Marine and Land crude at full contracted volumes for August, unchanged from July levels, a trade source said on Thursday.
It has been supplying both grades at full contracted volumes since August 2009.
US 2010 oil refining capacity highest in 29 years-EIA
WASHINGTON, June 29 (Reuters) - U.S. oil refining capacity increased to its highest level in nearly three decades during 2010, but refining operations remain well below historical highs seen in the 1990s, the Energy Information Administration said Wednesday.
There were 148 refineries operating in the U.S. at the beginning of 2011 with a capacity to produce 17.7 million barrels of petroleum products a day, up 0.9 percent, or 152,000 barrels per day, from the pervious year, the EIA said.
Europe oil stocks sale begins, market confused
HAMBURG/LONDON, June 29 (Reuters) - Sales of emergency oil stocks began in Europe on Wednesday, as part of a plan by consuming nations to cool prices, but traders complained about confusing signals from different countries and industry lobbies warning of price spikes.
The West's energy watchdog, the International Energy Agency, shocked energy markets last week by announcing the release of 60 million barrels of oil and products to compensate for the loss of Libyan crude. The aim was to prevent high oil prices from hitting a fragile economic recovery.
US oil demand drops in April, first since Nov 2009
WASHINGTON, June 29 (Reuters) - U.S. oil demand in April was weaker than previously projected, with monthly oil consumption posting its first year-over-year drop since November 2009, the U.S. government said on Wednesday.
April petroleum demand fell to 18.613 million barrels per day, down 1.57 percent from a year earlier, the Energy Information Administration said in its petroleum supply report.
20110630 1055 Renewable Energy Related News.
AREVA, IBERDROLA PARTNER IN FRENCH OFFSHORE WIND
PARIS, June 29 (Reuters) - French nuclear reactor maker Areva and Spanish power company Iberdrola plan to bid together for offshore wind projects in France, the companies said in a statement on Wednesday.
Under the agreement, Areva will be sole supplier of the turbines that will equip the offshore farms to be developed by Iberdrola, Areva said.
US POWER AGENCY DETAILS EXCESS HYDRO IMPACT ON WIND, GAS
HOUSTON, June 28 (Reuters) - The highest Columbia River runoff in more than a decade has resulted in the curtailment of about 7 percent of scheduled output from wind farms since mid-May, the Bonneville Power Administration (BPA) said on Tuesday.
Water supply in the U.S. Pacific Northwest is on track to surpass the second-highest year on record, set in 1974, according to the U.S. Northwest River Forecast Center.
FIRST SOLAR SHARES SOAR ON JEFFERIES NOTE
LOS ANGELES, June 28 (Reuters) - Shares of First Solar Inc rose nearly 7 percent on Tuesday after a Jefferies analyst said the stock should rise due to stronger worldwide demand for solar in the second half of the year and expected approval of the company's federal loan guarantee applications.
First Solar and other solar stocks have been hit hard this year due to cuts in solar subsidies in key markets like Italy. The cuts have slowed development of solar projects and sent prices on panels down sharply, hurting producers' profits.
IBERIAN SPOT POWER DROPS ON CLIMBING WIND POWER
MADRID, June 28 (Reuters) - Iberian wholesale prompt power fell hard on Tuesday from a previous 30-month high due to prospects cheap supplies of wind power would meet demand driven by air conditioners coping with 40-degree temperatures.
National grid operator REE predicted wind parks in Spain -- Europe's most productive in 2010 -- would boost output to 7,778 megawatts by peak hour on Tuesday from 3,181 MW at midday.
HIGHER HYDROPOWER GENERATION EASES CHINA POWER SHORTAGES - NDRC
BEIJING, June 28 (Reuters) - Only two of the 26 provinces served by State Grid Corp of China have been restricting power consumption since June 10, after widespread rainfall lifted hydropower generation and led to a fall in power use for air conditioning, a government department said on Tuesday.
Supply tightness in eastern Zhejiang and Anhui, central Hunan and southwestern Chongqing had eased noticeably after hydro-electric generation surged in mid-June, the National Development and Reform Commission said in a release on its website (www.ndrc.gov.cn).
CANADA'S FINAVERA SEES GREEN NOD FOR 2 WIND PROJECTS IN OCT
June 27 (Reuters) - Canada's Finavera Wind Energy Inc posted a narrower quarterly loss, helped by lower project costs, and said two of its wind projects in British Columbia are expected to get environmental clearance in October.
The Vancouver-based wind energy developer, which also runs wind farms in Ireland, said it remains on track to reach a definitive agreement for the equity finance of its Wildmare wind energy project in northeastern British Columbia.
CHINA SUNERGY SETS 1 GW SOLAR CELL EXPANSION PLAN
June 27 (Reuters) - China Sunergy Co Ltd said it plans to invest 1.8 billion yuan ($278 million) in a 1 gigawatt (GW) solar cells expansion project.
The first batch of 500 megawatt (MW) cells produced by the company's units, China Sunergy (HK) Co Ltd. and China Sunergy (Nanjing) Co Ltd, is expected to be commercialized in the first half of 2012, China Sunergy said in a statement.
MANILA BOURSE WANTS TO EASE RULES FOR ENERGY FIRMS
MANILA, June 27 (Reuters) - The Philippine Stock Exchange (PSE) wants to ease its listing and disclosure rules for petroleum and renewable energy firms, a sector seen as a growth driver for the bourse, the smallest amongst major Southeast Asian nations, and the economy.
The PSE said on Monday the lack of an active resources sector on the exchange and restrictive listing rules were limiting investment opportunities in the sectors.
TEXAS SETS WIND POWER RECORD AMID SLOW GROWTH
HOUSTON, June 24 (Reuters) - Texas set a record for wind-power output over the weekend even as new wind-farm expansion has slowed to a crawl, the state grid operator said in a report.
The amount of electricity produced from wind on the evening of June 19 set a record at 7,355 megawatts, more than 78 percent of the 9,400 MW of installed wind capacity in the Electric Reliability Council of Texas (ERCOT).
YASH BIRLA GROUP TO MAKE SILICON WAFERS, SOLAR CELLS
MUMBAI, June 23 (Reuters) - Yash Birla Group said on Thursday group firm Birla Surya Ltd will invest 54 billion rupees over five years to set up an integrated facility for fabrication of multi-crystalline silicon wafers and solar photovoltaic cells.
The first phase of the project located in Satara district of Maharashtra state will involve an investment of 14.93 billion rupees, funded through a debt of 9.7 billion rupees, the group said in a statement.
GOOGLE, CITI INVEST ANOTHER $204 MLN IN WIND PROJECT
LOS ANGELES, June 22 (Reuters) - Google Inc and Citigroup are investing another $204 million in the Alta Wind Energy Center in Southern California's Tehachapi Mountains, bringing their total combined investment in the project to $314 million.
The additional funds will be split evenly between the two companies, according to Terra-Gen Power, which is building what is expected to be the nation's largest wind energy project.
SOLAR INSTALLER REAL GOODS TO BUY ALTERIS RENEWABLES
June 22 (Reuters) - Real Goods Solar Inc , a U.S. residential and commercial solar energy system installer, plans to acquire privately owned rival Alteris Renewables Inc to expand into the northeast, where state-level clean energy subsidies are growing.
The acquisition of Alteris will help Real Goods move beyond its existing hubs of California and Colorado to states such as Connecticut and New Jersey.
PARIS, June 29 (Reuters) - French nuclear reactor maker Areva and Spanish power company Iberdrola plan to bid together for offshore wind projects in France, the companies said in a statement on Wednesday.
Under the agreement, Areva will be sole supplier of the turbines that will equip the offshore farms to be developed by Iberdrola, Areva said.
US POWER AGENCY DETAILS EXCESS HYDRO IMPACT ON WIND, GAS
HOUSTON, June 28 (Reuters) - The highest Columbia River runoff in more than a decade has resulted in the curtailment of about 7 percent of scheduled output from wind farms since mid-May, the Bonneville Power Administration (BPA) said on Tuesday.
Water supply in the U.S. Pacific Northwest is on track to surpass the second-highest year on record, set in 1974, according to the U.S. Northwest River Forecast Center.
FIRST SOLAR SHARES SOAR ON JEFFERIES NOTE
LOS ANGELES, June 28 (Reuters) - Shares of First Solar Inc rose nearly 7 percent on Tuesday after a Jefferies analyst said the stock should rise due to stronger worldwide demand for solar in the second half of the year and expected approval of the company's federal loan guarantee applications.
First Solar and other solar stocks have been hit hard this year due to cuts in solar subsidies in key markets like Italy. The cuts have slowed development of solar projects and sent prices on panels down sharply, hurting producers' profits.
IBERIAN SPOT POWER DROPS ON CLIMBING WIND POWER
MADRID, June 28 (Reuters) - Iberian wholesale prompt power fell hard on Tuesday from a previous 30-month high due to prospects cheap supplies of wind power would meet demand driven by air conditioners coping with 40-degree temperatures.
National grid operator REE predicted wind parks in Spain -- Europe's most productive in 2010 -- would boost output to 7,778 megawatts by peak hour on Tuesday from 3,181 MW at midday.
HIGHER HYDROPOWER GENERATION EASES CHINA POWER SHORTAGES - NDRC
BEIJING, June 28 (Reuters) - Only two of the 26 provinces served by State Grid Corp of China have been restricting power consumption since June 10, after widespread rainfall lifted hydropower generation and led to a fall in power use for air conditioning, a government department said on Tuesday.
Supply tightness in eastern Zhejiang and Anhui, central Hunan and southwestern Chongqing had eased noticeably after hydro-electric generation surged in mid-June, the National Development and Reform Commission said in a release on its website (www.ndrc.gov.cn).
CANADA'S FINAVERA SEES GREEN NOD FOR 2 WIND PROJECTS IN OCT
June 27 (Reuters) - Canada's Finavera Wind Energy Inc posted a narrower quarterly loss, helped by lower project costs, and said two of its wind projects in British Columbia are expected to get environmental clearance in October.
The Vancouver-based wind energy developer, which also runs wind farms in Ireland, said it remains on track to reach a definitive agreement for the equity finance of its Wildmare wind energy project in northeastern British Columbia.
CHINA SUNERGY SETS 1 GW SOLAR CELL EXPANSION PLAN
June 27 (Reuters) - China Sunergy Co Ltd said it plans to invest 1.8 billion yuan ($278 million) in a 1 gigawatt (GW) solar cells expansion project.
The first batch of 500 megawatt (MW) cells produced by the company's units, China Sunergy (HK) Co Ltd. and China Sunergy (Nanjing) Co Ltd, is expected to be commercialized in the first half of 2012, China Sunergy said in a statement.
MANILA BOURSE WANTS TO EASE RULES FOR ENERGY FIRMS
MANILA, June 27 (Reuters) - The Philippine Stock Exchange (PSE) wants to ease its listing and disclosure rules for petroleum and renewable energy firms, a sector seen as a growth driver for the bourse, the smallest amongst major Southeast Asian nations, and the economy.
The PSE said on Monday the lack of an active resources sector on the exchange and restrictive listing rules were limiting investment opportunities in the sectors.
TEXAS SETS WIND POWER RECORD AMID SLOW GROWTH
HOUSTON, June 24 (Reuters) - Texas set a record for wind-power output over the weekend even as new wind-farm expansion has slowed to a crawl, the state grid operator said in a report.
The amount of electricity produced from wind on the evening of June 19 set a record at 7,355 megawatts, more than 78 percent of the 9,400 MW of installed wind capacity in the Electric Reliability Council of Texas (ERCOT).
YASH BIRLA GROUP TO MAKE SILICON WAFERS, SOLAR CELLS
MUMBAI, June 23 (Reuters) - Yash Birla Group said on Thursday group firm Birla Surya Ltd will invest 54 billion rupees over five years to set up an integrated facility for fabrication of multi-crystalline silicon wafers and solar photovoltaic cells.
The first phase of the project located in Satara district of Maharashtra state will involve an investment of 14.93 billion rupees, funded through a debt of 9.7 billion rupees, the group said in a statement.
GOOGLE, CITI INVEST ANOTHER $204 MLN IN WIND PROJECT
LOS ANGELES, June 22 (Reuters) - Google Inc and Citigroup are investing another $204 million in the Alta Wind Energy Center in Southern California's Tehachapi Mountains, bringing their total combined investment in the project to $314 million.
The additional funds will be split evenly between the two companies, according to Terra-Gen Power, which is building what is expected to be the nation's largest wind energy project.
SOLAR INSTALLER REAL GOODS TO BUY ALTERIS RENEWABLES
June 22 (Reuters) - Real Goods Solar Inc , a U.S. residential and commercial solar energy system installer, plans to acquire privately owned rival Alteris Renewables Inc to expand into the northeast, where state-level clean energy subsidies are growing.
The acquisition of Alteris will help Real Goods move beyond its existing hubs of California and Colorado to states such as Connecticut and New Jersey.
20110630 1053 Biofuels Related News.
U.S. SENATE TRIO WORKS ON ETHANOL SUBSIDY OVERHAUL
WASHINGTON, June 28 (Reuters) - Three senators are working on a legislative framework to replace the $6 billion a year U.S. ethanol tax credit with far less costly incentives such as helping retailers pay for so-called blender pumps.
The package could terminate the excise tax credit as early as July 1, an industry insider said on Tuesday. He said the challenge for biofuels is how to expand sales and a key way is is to introduce pumps that would allow drivers to choose blends from 10 to 85 percent ethanol.
FROST CLIPS BRAZIL WINTER CORN CROP, PRICES RISE
SAO PAULO, June 28 (Reuters) - The first widespread frost hit Brazil's leading grain state of Parana in the past two mornings, hurting the quality of what is expected to be a record output for the winter corn crop, officials said.
Prices for the state's corn rose 4 percent after news of the extent of the frost became more widely known.
US GOVT ISSUES PUMP LABELS FOR GASOLINE WITH MORE ETHANOL
WASHINGTON, June 28 (Reuters) - The U.S. government approved new ethanol labels for gasoline pumps on Tuesday to warn drivers to use the right blend for their car, but critics said consumers might still become confused.
The Environmental Protection Agency required the new orange and black labels after it approved a 50 percent boost in the ethanol blend rate in gasoline for cars built since 2001.
RAIN SLOWS BRAZIL SUGAR, ETHANOL OUTPUT
BRASILIA, June 28 (Reuters) - Rains in the first half of June slowed harvesting of Brazil's sugarcane crop, cutting the pace of sugar and ethanol production after it perked up in late May, the cane industry association Unica said on Tuesday.
Sugar production in Brazil's center-south totaled 1.99 million tonnes in the second half of June, down 14 percent from the same two-week period a year ago, cane industry association Unica said on Tuesday.
BIOFUELS MAY CUT BRAZIL'S SOYOIL EXPORTS-OIL WORLD
HAMBURG, June 28 (Reuters) - Rising biodiesel production may cut Brazil's 2011 soyoil exports and Argentina's soyoil shipments will also be lower than potential, Hamburg-based oilseeds analysts Oil World said on Tuesday.
Brazil, the world's No. 2 soyoil exporter, may sell only 1.50 million tonnes of soyoil overseas in the 2011 calendar year, down from 1.56 million tonnes in 2010, Oil World forecasts.
BIOFUEL FIRM KIOR MAKES LACKLUSTER MARKET DEBUT
BANGALORE, June 24 (Reuters) - Biofuels maker KiOR Inc made a quiet market debut on Friday, a day after the private equity-backed firm's initial public offering raised a quarter less than initially expected.
Shares of the company closed at $15 on Nasdaq, the price they debuted at, after lackluster trading throughout the day.
"We weren't surprised," Morningstar analyst Bill Buhr said.
NOBLE GROUP TO BUILD BIODIESEL PLANT IN ARGENTINA
BUENOS AIRES, June 22 (Reuters) - Commodity trader Noble Group will invest $50 million in a biodiesel plant in Argentina, President Cristina Fernandez said on Wednesday.
Argentina is one of the world's biggest exporters of biodiesel, producing the fuel from ample supplies of soybean oil, and production has skyrocketed in recent years.
US ETHANOL PRODUCTION UP 2 PCT IN WEEK
KANSAS CITY, Mo., June 22 (Reuters) - U.S. ethanol production rose 2.4 percent in the latest reporting week, edging higher after a slide the prior week, the government said on Wednesday.
Ethanol output totaled 901,000 barrels per day (bpd) for the week ended June 17, down up 21,000 bpd over the previous week, even as ethanol stocks fell 236,000 barrels to 19.51 million barrels, the Energy Information Administration said in its weekly petroleum report.
BRAZIL SUGAR EXPORT TAX SEEN UNLIKELY - ANALYSTS
BRUSSELS, June 22 (Reuters) - The introduction of a sugar export tax in top grower Brazil is unlikely as the country is a firm advocate of free market trade policies, analysts said on Wednesday.
Speaking at the F.O. Licht Sugar Trade Outlook conference, Geraldine Kutas, a senior adviser with Brazilian sugarcane industry group UNICA, said the government had floated the idea in response to high domestic ethanol prices, but introduction of such a tax was unlikely.
U.S. GOVT CUTS USE OF NEXT-GENERATION BIOFUELS
WASHINGTON, June 21 (Reuters) - The dream of making a green motor fuel from switchgrass or wood chips got kicked down the road for a few more years after the U.S. government on Tuesday slashed its proposed mandate for next-generation biofuels.
For the second year in a row, the Environmental Protection Agency cut the amount of cellulosic ethanol that must be mixed into motor fuel.
WASHINGTON, June 28 (Reuters) - Three senators are working on a legislative framework to replace the $6 billion a year U.S. ethanol tax credit with far less costly incentives such as helping retailers pay for so-called blender pumps.
The package could terminate the excise tax credit as early as July 1, an industry insider said on Tuesday. He said the challenge for biofuels is how to expand sales and a key way is is to introduce pumps that would allow drivers to choose blends from 10 to 85 percent ethanol.
FROST CLIPS BRAZIL WINTER CORN CROP, PRICES RISE
SAO PAULO, June 28 (Reuters) - The first widespread frost hit Brazil's leading grain state of Parana in the past two mornings, hurting the quality of what is expected to be a record output for the winter corn crop, officials said.
Prices for the state's corn rose 4 percent after news of the extent of the frost became more widely known.
US GOVT ISSUES PUMP LABELS FOR GASOLINE WITH MORE ETHANOL
WASHINGTON, June 28 (Reuters) - The U.S. government approved new ethanol labels for gasoline pumps on Tuesday to warn drivers to use the right blend for their car, but critics said consumers might still become confused.
The Environmental Protection Agency required the new orange and black labels after it approved a 50 percent boost in the ethanol blend rate in gasoline for cars built since 2001.
RAIN SLOWS BRAZIL SUGAR, ETHANOL OUTPUT
BRASILIA, June 28 (Reuters) - Rains in the first half of June slowed harvesting of Brazil's sugarcane crop, cutting the pace of sugar and ethanol production after it perked up in late May, the cane industry association Unica said on Tuesday.
Sugar production in Brazil's center-south totaled 1.99 million tonnes in the second half of June, down 14 percent from the same two-week period a year ago, cane industry association Unica said on Tuesday.
BIOFUELS MAY CUT BRAZIL'S SOYOIL EXPORTS-OIL WORLD
HAMBURG, June 28 (Reuters) - Rising biodiesel production may cut Brazil's 2011 soyoil exports and Argentina's soyoil shipments will also be lower than potential, Hamburg-based oilseeds analysts Oil World said on Tuesday.
Brazil, the world's No. 2 soyoil exporter, may sell only 1.50 million tonnes of soyoil overseas in the 2011 calendar year, down from 1.56 million tonnes in 2010, Oil World forecasts.
BIOFUEL FIRM KIOR MAKES LACKLUSTER MARKET DEBUT
BANGALORE, June 24 (Reuters) - Biofuels maker KiOR Inc made a quiet market debut on Friday, a day after the private equity-backed firm's initial public offering raised a quarter less than initially expected.
Shares of the company closed at $15 on Nasdaq, the price they debuted at, after lackluster trading throughout the day.
"We weren't surprised," Morningstar analyst Bill Buhr said.
NOBLE GROUP TO BUILD BIODIESEL PLANT IN ARGENTINA
BUENOS AIRES, June 22 (Reuters) - Commodity trader Noble Group will invest $50 million in a biodiesel plant in Argentina, President Cristina Fernandez said on Wednesday.
Argentina is one of the world's biggest exporters of biodiesel, producing the fuel from ample supplies of soybean oil, and production has skyrocketed in recent years.
US ETHANOL PRODUCTION UP 2 PCT IN WEEK
KANSAS CITY, Mo., June 22 (Reuters) - U.S. ethanol production rose 2.4 percent in the latest reporting week, edging higher after a slide the prior week, the government said on Wednesday.
Ethanol output totaled 901,000 barrels per day (bpd) for the week ended June 17, down up 21,000 bpd over the previous week, even as ethanol stocks fell 236,000 barrels to 19.51 million barrels, the Energy Information Administration said in its weekly petroleum report.
BRAZIL SUGAR EXPORT TAX SEEN UNLIKELY - ANALYSTS
BRUSSELS, June 22 (Reuters) - The introduction of a sugar export tax in top grower Brazil is unlikely as the country is a firm advocate of free market trade policies, analysts said on Wednesday.
Speaking at the F.O. Licht Sugar Trade Outlook conference, Geraldine Kutas, a senior adviser with Brazilian sugarcane industry group UNICA, said the government had floated the idea in response to high domestic ethanol prices, but introduction of such a tax was unlikely.
U.S. GOVT CUTS USE OF NEXT-GENERATION BIOFUELS
WASHINGTON, June 21 (Reuters) - The dream of making a green motor fuel from switchgrass or wood chips got kicked down the road for a few more years after the U.S. government on Tuesday slashed its proposed mandate for next-generation biofuels.
For the second year in a row, the Environmental Protection Agency cut the amount of cellulosic ethanol that must be mixed into motor fuel.
20110630 1046 Global Market Related News.
DJIA chart reading : side way range bound little upside biased.
Hang Seng chart reading : correction range bound little downside biased.
Stocks, euro rise betting Greece to avoid bankruptcy
LONDON, June 29 (Reuters) - Equities gained and the euro rose on Wednesday as investors bet on the ability of Greece's government to pass new austerity measured designed to prevent the country from going bankrupt.
"A lot of work has been done behind the scenes to ensure that the proposals get passed, and that optimism is getting reflected," said Graham Bishop, equity strategist at RBS.
Asian Stocks Rise as Greece Votes for Austerity (Source: Bloomberg)
Asian stocks rose, with the regional benchmark index headed for its highest close in a month, after Greece passed austerity measures needed to secure financial aid, easing concern the country will suffer a default that could destabilize the banking system. Sumitomo Mitsui Financial Group Inc. (8316), Japan’s second- biggest publicly traded bank, gained 1.2 percent in Tokyo. Commonwealth Bank of Australia (CBA), the nation’s biggest lender by market value, added 0.9 percent in Sydney. BHP Billiton Ltd. (BHP), the world’s largest mining company and Australia’s No. 1 oil producer, increased 0.7 percent after crude and metal climbed.
U.S. Stocks Rise, S&P 500 Has Biggest Three-Day Gain Since March on Greece (Source: Bloomberg)
U.S. stocks rose, giving benchmark indexes the biggest three-day gain since March, as Greece passed austerity measures and the Federal Reserve moved to set a less- severe limit on debit-card swipe fees than previously proposed. Visa Inc. (V) and MasterCard Inc. (MA), the biggest consumer-payment networks, jumped more than 11 percent, as the Fed moved to cap debit-card transaction fees at 21 cents. Bank of America Corp. (BAC) advanced 3 percent after agreeing to pay $8.5 billion to resolve claims over soured mortgages. Monsanto Co. (MON), the largest seed company, climbed 5 percent after net income jumped 77 percent. U.S. Steel Corp. paced a rally in steelmakers, rising 5.9 percent, as Deutsche Bank AG predicted demand rebound.
Pending Sales of U.S. Existing Homes Rise by 8.2%, Almost Triple Forecasts (Source: Bloomberg)
The number of contracts to buy previously owned U.S. homes rose almost three times as much as forecast as falling prices made properties more affordable. The surprising 8.2 percent increase in the index of pending home resales from April followed a revised 11 percent drop the prior month, the National Association of Realtors said today in Washington. Economists forecast a 3 percent gain, according to the median estimate in a Bloomberg News survey. While the measure of contract signings has been volatile this year, last month’s index level is 0.1 point lower than the January figure, indicating residential real estate has made little headway. Foreclosures, unemployment at 9.1 percent and stringent loan terms are holding back demand even as a decline in home prices attract some buyers.
BofA Settles Soured Mortgages for $8.5 Billion (Source: Bloomberg)
Bank of America Corp. (BAC), the biggest U.S. bank, agreed to pay $8.5 billion to resolve claims made by bondholders including BlackRock Inc. (BLK) over soured mortgages. The lender rose as much as 4 percent in New York trading. The settlement will contribute to a second-quarter loss of $8.6 billion to $9.1 billion, or 88 cents to 93 cents a share, the Charlotte, North Carolina-based bank said today in a statement. Bank of America also said it will add $5.5 billion to a liability reserve for future loan-repurchase demands in the quarter and post $6.4 billion in other charges including legal costs and a writedown of mortgage-unit goodwill.
Moody’s Sees U.S. Rating Cut to Aa On Default (Source: Bloomberg)
Standard & Poor’s will cut the U.S. credit rating to its lowest level and Moody’s Investors Service said it would reduce its ranking if the government fails to increase the debt limit, leading to a default. S&P would lower its sovereign top-level AAA ranking to D, the last rung on its scale, John Chambers, chairman of the company’s sovereign rating committee, said in an interview yesterday. Moody’s said it would probably assign a level in the Aa range.
Fed’s Raskin Says Income Inequality Hinders Economy’s Ability to Recover (Source: Bloomberg)
Federal Reserve Governor Sarah Bloom Raskin said the financial inequality resulting from stagnating incomes for most Americans and rapid growth in wealth for the richest 1 percent is hindering the U.S. economic recovery. “This inequality is destabilizing and undermines the ability of the economy to grow sustainably and efficiently,” Raskin said today to a forum in Washington sponsored by the New America Foundation. The disparities help “drag down maximum economic growth and are anathema to the social progress that is part and parcel of such growth,” she said.
Clinton Says U.S. Lacks Long-Term Planning Needed for Success (Source: Bloomberg)
Former President Bill Clinton opened a conference on job creation by saying the U.S. lacks the long- term budgeting and planning needed to be as successful as it could be on the global stage. “We’ve gotten ourselves in a position where we’re spending too much money on today and yesterday, and not money enough on tomorrow,” he said during the first panel discussion at the Clinton Global Initiative’s two-day conference in Chicago. “We’re borrowing too much, so that once the economy picks up, we’re creating tomorrow’s problem.”
IMF Urges U.S. Debt-Ceiling Increase to Avoid a ‘Severe Shock’ to Economy (Source: Bloomberg)
The International Monetary Fund said today global markets will suffer if the U.S. Congress fails to approve an increase in the $14.3 trillion debt ceiling and cautioned about the risk of a downgrade in the country’s credit rating. “The federal debt ceiling should be raised expeditiously to avoid a severe shock to the economy and world financial markets,” the IMF said in a report on the U.S. economy. The report said a failure to reach a budget and debt compromise could result in a “sudden increase in interest rates and/or a sovereign downgrade.”
Japan May factory output jumps by most in nearly 60 years
TOKYO, June 29 (Reuters) - Japanese factory output jumped by the most in almost 60 years in May as manufacturers restore supply chains damaged by the massive earthquake and tsunami in March, the latest evidence the economy is headed for a "V-shaped" recovery from the disaster.
Manufacturers, however, forecast smaller gains in output in coming months as they adjust production schedules to cope with possible electricity shortages in the summer.
Japanese Stocks Swing Between Gains, Losses on Greek Vote, Yen Advance (Source: Bloomberg)
Japanese stocks swung between gains and losses after Greece passed austerity measures needed to secure aid from the European Union, while the yen strengthened, cutting the value of export earnings. Canon Inc., a camera maker that gets more than 80 percent of its sales abroad, dropped 0.9 percent. Honda Motor Co., Japan’s second-biggest carmaker by sales, fell 1.1 percent. Nintendo Co., maker of Wii game consoles, slid 1.6 percent.
South Korea Raises Inflation Forecast to 4% While Cutting Growth Estimate (Source: Bloomberg)
South Korea’s inflation will exceed President Lee Myung Bak’s target this year and growth will be slower than previously forecast after global demand weakened and energy costs climbed, Finance Ministry forecasts showed today. Consumer prices are expected to rise 4 percent, the ministry said in a statement, exceeding its initial 3 percent projection. The government also lowered its estimate of economic growth to 4.5 percent from the 5 percent it projected last December.
Euro Climbs to Two-Week High Versus Dollar on Rate Prospects; Aussie Rises (Source: Bloomberg)
The euro rose to a two-week high against the dollar on prospects the European Central Bank will increase interest rates next week and as the immediate risk of default by Greece subsided. The common currency advanced against most of its major counterparts before a report forecast to show European consumer prices accelerated in June, adding to the case for the ECB to raise rates at its July 7 meeting to curb inflation. The central bank’s President Jean-Claude Trichet said on June 28 policy makers are in “strong vigilance mode.” Australia’s dollar touched a two-week high before a report forecast to show bank lending expanded.
Deficit Concerns Push Rupee to First Loss in Four Quarters: India Credit (Source: Bloomberg)
India’s decision to scrap import duties on crude oil is stoking concern that the government will fail to rein in its budget deficit, depressing the rupee and pushing up yields on government debt. The currency is headed for its first quarterly loss in a year, after weakening 0.6 percent against the dollar since March 31, the worst performance in Asia after the Thai baht’s 1.7 percent decline, according to data compiled by Bloomberg. Yields on 10-year government bonds have climbed 13 basis points from a six-week low of 8.19 percent on June 20.
FOREX-Euro edges up as Greek austerity vote seen passing
LONDON, June 29 - The euro edged higher on Wednesday, supported by expectations that the Greek parliament would vote in favour of an austerity package, though wariness that this would only be a short-term solution to the country's debt problems limited gains.
Traders said a positive outcome in the vote, which would allow funding for Greece to be released and avoid a disorderly default, could push the euro towards $1.4500, though concerns would remain about whether Greece can implement the measures.
20110630 1029 Global Commodities Related News.
Corn (Source: CME)
US corn futures end mixed in a volatile session, with prices fluctuating wildly ahead of Thursday's USDA report on acreage and quarterly stocks. The market opened sharply higher today amid short-covering and renewed optimism about export demand, as well as worries about the US crop. New-crop contracts then relinquished gains. CBOT July corn closes up 15c at $6.98/bushel but December dropped 2 1/2c to $6.50 1/2.
Wheat (Source: CME)
US wheat futures rally for a second straight day as worries about the spring wheat crop in North Dakota continue to fuel the market. Millions of unplanted acres in North Dakota, a key wheat state, along with more rains that have threatened the planted crop, could lead to significant shortfalls, analysts say. MGEX July spring wheat led the way higher, jumping 37 cents, or 4.4%, to $8.76/bushel, while July KCBT wheat ends up 1 1/4 cents to $7.45. July CBOT wheat ends up 1 cent to $6.41 1/4, but some deferred contracts end slightly lower.
Rice (Source: CME)
US rice futures end lower as a modest rebound started Tuesday fails to hold. Prices are down sharply since June 10 thanks to widespread commodity selling and ample world rice supplies. Traders awaiting Thursday's USDA acreage and quarterly stocks report. The Arkansas Farm Bureau says it should give clearer look at how many U.S. acres have been lost to flooding. CBOT July rice ends down 5 1/2 cents to $13.26 1/2 per hundredweight.
Corn at one-week top, wheat rallies on crop conditions
SINGAPORE, June 29 (Reuters) - Chicago corn futures rose 2.4 percent on Wednesday, while wheat added almost 2 percent as renewed concerns over U.S. crops and investor positioning ahead of a key government report buoyed the markets.
"I think that Minneapolis wheat led grain markets higher as there is talk about lost acres due to wet weather in the U.S.," said Brett Cooper, a senior manager of markets at FCStone Australia.
Australia to allow more competition in WA grain exports
SYDNEY, June 29 (Reuters) - Western Australia's main grain handler will be forced to surrender its monopoly over transporting grain to export ports in the country's top grain exporting state, Australia's competition regulator said on Wednesday.
Co-operative Bulk Handling Ltd (CBH) is the dominant provider of up-country storage facilities for bulk export grain in Western Australia and over 90 per cent of the grain harvested in the state is stored in the firm's facilities.
Indonesia, Bangladesh rice demand lift Vietnam prices
HANOI, June 29 (Reuters) - Indonesia has been in talks to import between 400,000 and 600,000 tonnes of rice from Vietnam to capitalise on lower prices, with shipment possible in the third quarter of this year, traders and a state-run newspaper said on Wednesday.
The official Vietnam Economic Times newspaper said if the government-to-government contract is reached, 600,000 tonnes of rice would be shipped in August. It gave no details on pricing or the rice grades.
India likely to ease grain export curbs soon-sources
NEW DELHI, June 28 (Reuters) - India could decide soon to allow exports of a million tonnes each of wheat and common rice as government stocks hit a record 65.6 million tonnes, well above targets, two government sources said on Tuesday.
India, one of the world's biggest producers and consumers of wheat and rice, has kept a tight control over grain exports since 2007, allowing only overseas sales of aromatic basmati rice, to ensure it can provide cheap food grains to the poor.
Vietnam 2011 paddy output to rise to 41 mln T-report
HANOI, June 29 (Reuters) - Vietnam, the world's second-largest rice exporter after Thailand, plans to raise output this year to 41 million tonnes of paddy, up 2.5 percent from 2010 when it already shipped a record volume, a state-run newspaper reported on Wednesday.
Higher production of the staple in Vietnam would not only help secure more food security for a population of 87 million, but also raise the country's export capacity, thus helping to ease pressure on regional and global food supply.
Frost clips Brazil winter corn crop, prices rise
SAO PAULO, June 28 (Reuters) - The first widespread frost hit Brazil's leading grain state of Parana in the past two mornings, hurting the quality of what is expected to be a record output for the winter corn crop, officials said.
Prices for the state's corn rose 4 percent after news of the extent of the frost became more widely known.
Emerging fast-food nation Indonesia props up wheat market
JAKARTA, June 28 (Reuters) - Indonesia will be crowned top Asian wheat importer this year, as higher incomes turn Southeast Asia's largest economy into a fast-food nation and help to keep global prices on the boil.
As affluent Indonesians turn away from rice, their country is vying with Japan to be Asia's leading wheat buyer, while the latter battles economic crisis in the wake of a devastating earthquake and an ageing population boosts protein in its diet.
Russia grain prices too low to trigger export duty
MOSCOW, June 28 (Reuters) - Low export demand, ample supplies and a decline in world wheat futures are likely to push Russia's domestic grain prices below the government's threshold for new export restrictions.
Deputy Prime Minister Viktor Zubkov said last week the government, which on Friday will allow exports to resume after a 10-month ban, would start levying a duty if milling wheat prices hit 6,500 roubles ($229.40) a tonne.
Australians Ponder Stricter Curbs On Foreign Investment In Sector (Source: CME)
As worries grow that the expansion of open-cut coal mining is damaging Australia's agriculture base, opposition and Greens lawmakers said they want stricter curbs on foreign investment in the farming sector. Both the environmentalist Greens party and center-right Liberal Party want to lower the threshold on investments that trigger scrutiny by the foreign investment watchdog, so proposals to buy farms can be vetoed. That threshold is now 231 million Australian dollars (US$243.5 million). "We are having another look at the threshold for these kinds of purchases, as we do have to ensure what's done is in Australia's national interest," Liberals leader Tony Abbott told reporters. A push for change by both parties could pressure the ruling minority Labor government, which partly depends on the Greens to stay in office, to meet some of the demands. A spokesman for Treasurer Wayne Swan, who ultimately oversees foreign investment, wasn't immediately available to comment.
Foreign buying of farmland in Australia makes up a small proportion of overall inward capital, but lawmakers are concerned some of the country's best pastoral regions are being churned up by the mining sector. In the fiscal year ended June 30, 2010, 17 proposals valued at A$2.3 billion were approved in the agriculture sector, out of total foreign investment of A$140 billion. This compared with 12 proposals the year earlier valued at A$2.8 billion. The last review of foreign-investment thresholds was in 2009, which set the bar at A$231 million, while rules on foreign buying of residential property were tweaked in 2010. Greens party leader Bob Brown said he also wants a registration for the foreign ownership of land, and tighter restrictions on the approval of new mines. Mr. Brown singled out investment in the coal-rich Liverpool pastoral plains area of northern New South Wales, which he said is a direct threat to agriculture.
"There are small farms -- some four, five, six, seven generations in ownership -- being put out of business for a 20- or 30-year coal mining venture," Mr. Brown said after a speech at the National Press Club. He also addressed the proposed minerals resource rent tax, urging the government to maximize value from the mining boom by widening its scope beyond coal and iron ore to other metals and minerals. He also wants a debate on the pace of extraction of iron ore. "Isn't it a worry for all of us that the massive iron-ore repository we have in this nation may be gone in 25 years?" he said. The chief mining lobby group, the Minerals Council of Australia, said the Greens policy was "xenophobic" and warned the party against interfering in an industry it says is generating benefits across the country.
Soggy Corn Fields Curb Planting as Demand for Ethanol, Animal Feed Climbs (Source: Bloomberg)
U.S. corn farmers were unable to plant on soggy or flooded fields from Arkansas to North Dakota this year, signaling tighter grain stockpiles even after rising demand for livestock feed and ethanol sent prices surging. The U.S. Department of Agriculture may cut its planting forecast tomorrow to 90.629 million acres, according to a Bloomberg News survey of 31 analysts. That’s less than the 92.178 million that farmers predicted in a government survey three months ago and would be the USDA’s biggest such reduction from the March forecast since 1995.
Corn Rises for Second Day as U.S. Crop Conditions Worsen; Soybeans Climb (Source: Bloomberg)
Corn advanced for a second day, extending the biggest gain in almost three months, and soybeans rose on declining crop conditions in the U.S., the biggest exporter of both commodities. U.S. corn was rated 68 percent good or excellent as of June 26, down from 73 percent a year earlier, the Department of Agriculture said this week. Sixty-five percent of soybeans earned top ratings, down from 67 percent in 2010, USDA data show.
China's 2011 Corn Buys From US At Least 1.7 Mln Tons -Executives (Source: CME)
China has bought at least 1.7 million metric tons of U.S. corn in the last four months--including 700,000 tons in recent weeks, traders, shipping executives and cargo surveyors said. More sales are in the pipeline, and although the figure couldn't immediately be confirmed, there is speculation that China has made deals for a further 800,000 tons, they said. China's purchases are significant because U.S. corn stocks are dwindling and are likely to hit a 15-year low of 18.5 million tons by the end of August. China became a net importer of corn in 2010 for the first time in 15 years, and its purchases amid current tight supply could buoy global prices. The executives said all purchases are to replenish government stocks. Chinese government officials couldn't be reached for comment.
Traders didn't give the exact prices of the deals but said that late last week, when some of the deals were finalized, U.S. corn was offered around $338 a ton, cost and freight for shipment to China in September from the Pacific Northwest. Offers for August shipment to China from the U.S. Gulf were around $342/ton, C&F. "U.S. corn delivered into Chinese ports is now cheaper than grain in the local markets, but taxes of around 14% for private imports and [the] cost of transporting it to mills is a deterrent," said a Washington-based corn industry executive. However, such pitfalls aren't a factor for imports to build state reserves, he noted. Traders said that last week, ex-warehouse corn prices in northern China were around $357/ton, while ex-railhead rates in southern China, which is distant from corn-producing regions, was around $377/ton.
"China is buying when global prices are off highs, and the first such purchase of a little over 1.0 million tons was some time in March," said an executive familiar with the deals. He said subsequent deals totaling several hundred thousand tons were done in the second week of May and then again in the second half of June. Most traders said China bought at least 700,000 tons in recent weeks through global trading companies. The pace of China's purchases indicates that imports may hit 4.0 million tons by the end of the year, said the Washington-based executive. This would be more than double last year's total imports of around 1.6 million tons.
Sugar dips, buoyed by Brazil crop data; coffee steady
LONDON, June 29 (Reuters) - ICE raw sugar futures eased from near three-month highs in early trading on Wednesday, buoyed by lower-than-expected crush data in top grower Brazil, while arabica coffee was little changed, supported by news that a minor Brazilian coffee region was hit by frost.
Sugar futures edged down in light early trade, supported by lower-than-expected crush data in Brazil as dealers expressed concerns over a slow start to the harvest in the centre-south.
Frost hits some Brazil coffee; impact may be minor
BRASILIA, June 28 (Reuters) - Frost hit parts of at least two of Brazil's coffee-producing states overnight, agronomists said on Tuesday, but damage observed suggested the freeze was unlikely to put a major dent in next year's output.
The freeze hit Parana state, which produces about 5 percent of the coffee in the world's top producer, and parts of Sao Paulo state which grows about a 10th of national output.
Global Agriculture Supply Worsening May Spur Food Shortages, Rogers Says (Source: Bloomberg)
The global agriculture supply situation has worsened and a failure to boost food production fast enough to meet demand may lead to shortages, said investor Jim Rogers, chairman of Rogers Holdings. “We’ve got to do something or we’re going to have no food at any price at times in the next few years,” Rogers said in a Bloomberg Television interview with Rishaad Salamat today in Singapore. “I still own agriculture. If I found something to buy, I would buy it.”
Commodities midway through 20 pct correction-UBS
LONDON, June 28 (Reuters) - Commodities are due to be weak over the next several months, having completed about half of an expected 20 percent correction as investors unwind positions built up during stimulus programmes, UBS said on Tuesday.
"We've done about 10 percent on copper... so we reckon that we're about halfway there," global commodity analyst Julien Garran told a briefing.
EPA Gives Go Ahead To Boost Ethanol In Gasoline (Source: CME)
The Environmental Protection Agency cleared the way for gasoline companies to begin adding more ethanol to the gasoline mix pumped out at stations. Drivers may soon see an orange and black sticker at the pump warning that the fuel dispensed there contains "Up to 15% ethanol" and is to be used only in "2001 and newer passenger vehicles" or flexible-fuel vehicles that are designed to run on a blend as high as 85%. Until now, the highest percentage of ethanol allowed to be blended into most gasoline was 10%, but the new EPA regulation allows for that to rise to 15%. The new EPA label warns that using a 15% ethanol blend in cars made before 2001 may damage the engine. The EPA approved the 15% ethanol mix, or E15, in October 2010 and is now issuing the specific guidelines and labels needed to allow the higher blend to be sold at gas stations. Gasoline companies must first register with the EPA before they distribute it, an EPA spokeswoman said.
"This is another step in the process to get E15 into the marketplace later this year, which will create U.S. jobs, improve the environment and strengthen national security by displacing foreign oil," Tom Buis, chief executive for the ethanol lobbying group Growth Energy, said. The allowance for more ethanol in gasoline will likely have only a minor impact on ethanol production in the near term because many of the cars on the road were made before 2001, said Joe Glauber, the U.S. Department of Agriculture's chief economist. The positive news for the ethanol group comes shortly after a sharp blow to the industry by the Senate, which voted on June 16 to do away with a $6 billion tax credit for ethanol blenders and a 54-cent-per-gallon tariff on ethanol imports. And there is plenty of opposition to the rise of corn-based ethanol in the U.S., especially in the livestock industry. Ranchers blame rising ethanol production for higher corn-based feed prices.
Corn consumption by ethanol producers is at a record high 5.05 billion bushels expected this year by the USDA.
Crude Oil Climbs for Third Day After U.S. Supplies Drop More Than Expected (Source: Bloomberg)
Oil climbed a third day in New York after a report showed U.S. crude stockpiles fell almost three times as much as analysts forecast and Greece passed austerity measures aimed at preventing a debt default which may have disrupted Europe’s economy. Futures gained as much as 0.6 percent after the biggest two-day rally in seven weeks. The Energy Department said crude inventories declined 4.38 million barrels, compared with a median analyst projection for a 1.5 million-barrel decrease. Oil has risen 4.5 percent since June 23, when it dropped 4.6 percent after the International Energy Agency announced the release of 60 million barrels from strategic reserves, including 30 million from the U.S.
Japan May zinc exports fall 32 pct yr/yr
TOKYO, June 29 (Reuters) - Japan's refined zinc exports for May fell 32 percent from a year earlier to 5,905 tonnes, narrowing from April's year-on-year drop of 40 percent, Ministry of Finance data showed on Wednesday, partly reflecting a recovery in production.
The drop in May exports was also narrower than a 34.6 percent year-on-year decline in March, while exports rose 17 percent from April.
Japan May copper exports plunge 52 pct yr/yr
TOKYO, June 29 (Reuters) - Japan's refined copper exports plunged 52 percent in May from a year earlier to 23,764 tonnes for an eighth straight month of year-on-year declines, Ministry of Finance data showed on Wednesday, reflecting slowing demand from China, the world's top copper consumer.
But exports inched up 0.8 percent from April, with China's share also improving to 36 percent in May from 29 percent in April. China accounted for 48.5 percent of Japanese refined copper exports in March.
Japan May rare earth imports from China down 3 pct m/m
TOKYO, June 29(Reuters) - Japan's imports of rare earths from China fell 3 percent in May from April, the first month-on-month drop in three months, as the price of the metal surged, though demand could pick-up later in the year as the country continues to recover from a massive earthquake.
China, which produces 97 percent of global rare earth supplies, has been tightening trade in the strategic metal which is used in high-tech electronics, magnets and batteries, causing concerns globally about supply and triggering prices to jump.
Iron Ore-Prices at 3-month lows, miners put more cargo on spot
SINGAPORE, June 29 (Reuters) - Spot iron ore prices languished at three-month lows and deals remained scarce on Wednesday as lower steel prices in top producer China continued to limit buying interest for the steelmaking ingredient.
Global miners BHP Billiton and Rio Tinto are selling more cargoes on the spot market with Chinese steel mills opting to buy at spot rates as the material is cheaper than on long-term contracts, traders said.
Global iron ore swaps volume seen swelling to 80 mln T in 2015
SINGAPORE, June 28 (Reuters) - Global volume of iron ore swaps may jump to 80 million tonnes by 2015, around four times last year's level, as interest in the hedging tool rises, an industry official said on Tuesday.
The projected volume represents nearly 13 percent of China's iron ore imports of more than 618 million tonnes last year.
METALS-Copper rises on dollar, Greek austerity plan vote
LONDON, Jun 29 (Reuters) - Copper rose on Wednesday, helped by a softer dollar and as market sentiment improved on prospects that Greece's government will pass an austerity plan to save the country from bankruptcy.
Three-month copper on the London Metal Exchange was 1 percent higher at $9,165 a tonne by 1040 GMT, from $9,072 at the close on Tuesday.
PRECIOUS-Gold gains as invesors grow bolder over Greece
LONDON, June 29 (Reuters) - Gold rose for a second day on Wednesday as growing certainty that Greece will approve steep budget cuts boosted the euro and other risk-related assets such as commodities and higher-yielding currencies.
Gold often declines in periods of greater investor appetite, but any flickers of optimism over a solution to the Greek debt crisis have also resulted in a rise in the euro against the dollar, which has cushioned the bullion price.
Gold Futures Advance in New York as Decline to a 5-Week Low Prompts Buying (Source: Bloomberg)
Gold gained for a second day in New York as a drop to a five-week low spurred some investors to buy the metal as an alternative to currencies. Futures touched $1,490.80 an ounce on June 27, the lowest price since May 20. Greek Prime Minister George Papandreou today clinched enough votes to pass the first part of an austerity plan aimed at meeting European Union aid requirements and staving off a default.
Scrapping Record Fails to End ‘Nightmare’ for Shipowners: Freight Markets (Source: Bloomberg)
Shipowners are scrapping capesize vessels at a record pace after rates plunged about 50 percent in a year. It’s still not enough to end losses. Forty-eight capesizes, usually used for hauling iron ore or coal, have been demolished this year through June 24, compared with 18 in the whole of last year, according to shipbroker Clarkson Plc. Rates will remain below about $11,000 a day for the rest of the year, compared with a breakeven point of about $23,000, according to Johnson Leung, head of regional transport at Jefferies Group Inc. in Hong Kong.
Baltic index falls, capesize gains lose steam
LONDON, June 28 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell on Tuesday as the pace of cargo activity on the larger capesize market slowed.
Brokers said they were watching for further developments in China, which is facing its worst power shortages in years and likely to have an impact on dry freight activity. Uncertainty over prospects for the world economy could also potentially hurt demand for raw materials.
DryShips adds more options to buy drillships - Wells Fargo
June 27 (Reuters) - DryShips Inc , a dry bulk shipper and oil and natural gas driller, has added options for two more drillships with a base price of $608 million each, Wells Fargo Securities said in a note following the company's analyst day on Friday.
The Greece-based company now has three options with Samsung Heavy Industries , and if all of them are exercised, DryShips' fleet will comprise two semi-submersible rigs and 10 drillships.
US corn futures end mixed in a volatile session, with prices fluctuating wildly ahead of Thursday's USDA report on acreage and quarterly stocks. The market opened sharply higher today amid short-covering and renewed optimism about export demand, as well as worries about the US crop. New-crop contracts then relinquished gains. CBOT July corn closes up 15c at $6.98/bushel but December dropped 2 1/2c to $6.50 1/2.
Wheat (Source: CME)
US wheat futures rally for a second straight day as worries about the spring wheat crop in North Dakota continue to fuel the market. Millions of unplanted acres in North Dakota, a key wheat state, along with more rains that have threatened the planted crop, could lead to significant shortfalls, analysts say. MGEX July spring wheat led the way higher, jumping 37 cents, or 4.4%, to $8.76/bushel, while July KCBT wheat ends up 1 1/4 cents to $7.45. July CBOT wheat ends up 1 cent to $6.41 1/4, but some deferred contracts end slightly lower.
Rice (Source: CME)
US rice futures end lower as a modest rebound started Tuesday fails to hold. Prices are down sharply since June 10 thanks to widespread commodity selling and ample world rice supplies. Traders awaiting Thursday's USDA acreage and quarterly stocks report. The Arkansas Farm Bureau says it should give clearer look at how many U.S. acres have been lost to flooding. CBOT July rice ends down 5 1/2 cents to $13.26 1/2 per hundredweight.
Corn at one-week top, wheat rallies on crop conditions
SINGAPORE, June 29 (Reuters) - Chicago corn futures rose 2.4 percent on Wednesday, while wheat added almost 2 percent as renewed concerns over U.S. crops and investor positioning ahead of a key government report buoyed the markets.
"I think that Minneapolis wheat led grain markets higher as there is talk about lost acres due to wet weather in the U.S.," said Brett Cooper, a senior manager of markets at FCStone Australia.
Australia to allow more competition in WA grain exports
SYDNEY, June 29 (Reuters) - Western Australia's main grain handler will be forced to surrender its monopoly over transporting grain to export ports in the country's top grain exporting state, Australia's competition regulator said on Wednesday.
Co-operative Bulk Handling Ltd (CBH) is the dominant provider of up-country storage facilities for bulk export grain in Western Australia and over 90 per cent of the grain harvested in the state is stored in the firm's facilities.
Indonesia, Bangladesh rice demand lift Vietnam prices
HANOI, June 29 (Reuters) - Indonesia has been in talks to import between 400,000 and 600,000 tonnes of rice from Vietnam to capitalise on lower prices, with shipment possible in the third quarter of this year, traders and a state-run newspaper said on Wednesday.
The official Vietnam Economic Times newspaper said if the government-to-government contract is reached, 600,000 tonnes of rice would be shipped in August. It gave no details on pricing or the rice grades.
India likely to ease grain export curbs soon-sources
NEW DELHI, June 28 (Reuters) - India could decide soon to allow exports of a million tonnes each of wheat and common rice as government stocks hit a record 65.6 million tonnes, well above targets, two government sources said on Tuesday.
India, one of the world's biggest producers and consumers of wheat and rice, has kept a tight control over grain exports since 2007, allowing only overseas sales of aromatic basmati rice, to ensure it can provide cheap food grains to the poor.
Vietnam 2011 paddy output to rise to 41 mln T-report
HANOI, June 29 (Reuters) - Vietnam, the world's second-largest rice exporter after Thailand, plans to raise output this year to 41 million tonnes of paddy, up 2.5 percent from 2010 when it already shipped a record volume, a state-run newspaper reported on Wednesday.
Higher production of the staple in Vietnam would not only help secure more food security for a population of 87 million, but also raise the country's export capacity, thus helping to ease pressure on regional and global food supply.
Frost clips Brazil winter corn crop, prices rise
SAO PAULO, June 28 (Reuters) - The first widespread frost hit Brazil's leading grain state of Parana in the past two mornings, hurting the quality of what is expected to be a record output for the winter corn crop, officials said.
Prices for the state's corn rose 4 percent after news of the extent of the frost became more widely known.
Emerging fast-food nation Indonesia props up wheat market
JAKARTA, June 28 (Reuters) - Indonesia will be crowned top Asian wheat importer this year, as higher incomes turn Southeast Asia's largest economy into a fast-food nation and help to keep global prices on the boil.
As affluent Indonesians turn away from rice, their country is vying with Japan to be Asia's leading wheat buyer, while the latter battles economic crisis in the wake of a devastating earthquake and an ageing population boosts protein in its diet.
Russia grain prices too low to trigger export duty
MOSCOW, June 28 (Reuters) - Low export demand, ample supplies and a decline in world wheat futures are likely to push Russia's domestic grain prices below the government's threshold for new export restrictions.
Deputy Prime Minister Viktor Zubkov said last week the government, which on Friday will allow exports to resume after a 10-month ban, would start levying a duty if milling wheat prices hit 6,500 roubles ($229.40) a tonne.
Australians Ponder Stricter Curbs On Foreign Investment In Sector (Source: CME)
As worries grow that the expansion of open-cut coal mining is damaging Australia's agriculture base, opposition and Greens lawmakers said they want stricter curbs on foreign investment in the farming sector. Both the environmentalist Greens party and center-right Liberal Party want to lower the threshold on investments that trigger scrutiny by the foreign investment watchdog, so proposals to buy farms can be vetoed. That threshold is now 231 million Australian dollars (US$243.5 million). "We are having another look at the threshold for these kinds of purchases, as we do have to ensure what's done is in Australia's national interest," Liberals leader Tony Abbott told reporters. A push for change by both parties could pressure the ruling minority Labor government, which partly depends on the Greens to stay in office, to meet some of the demands. A spokesman for Treasurer Wayne Swan, who ultimately oversees foreign investment, wasn't immediately available to comment.
Foreign buying of farmland in Australia makes up a small proportion of overall inward capital, but lawmakers are concerned some of the country's best pastoral regions are being churned up by the mining sector. In the fiscal year ended June 30, 2010, 17 proposals valued at A$2.3 billion were approved in the agriculture sector, out of total foreign investment of A$140 billion. This compared with 12 proposals the year earlier valued at A$2.8 billion. The last review of foreign-investment thresholds was in 2009, which set the bar at A$231 million, while rules on foreign buying of residential property were tweaked in 2010. Greens party leader Bob Brown said he also wants a registration for the foreign ownership of land, and tighter restrictions on the approval of new mines. Mr. Brown singled out investment in the coal-rich Liverpool pastoral plains area of northern New South Wales, which he said is a direct threat to agriculture.
"There are small farms -- some four, five, six, seven generations in ownership -- being put out of business for a 20- or 30-year coal mining venture," Mr. Brown said after a speech at the National Press Club. He also addressed the proposed minerals resource rent tax, urging the government to maximize value from the mining boom by widening its scope beyond coal and iron ore to other metals and minerals. He also wants a debate on the pace of extraction of iron ore. "Isn't it a worry for all of us that the massive iron-ore repository we have in this nation may be gone in 25 years?" he said. The chief mining lobby group, the Minerals Council of Australia, said the Greens policy was "xenophobic" and warned the party against interfering in an industry it says is generating benefits across the country.
Soggy Corn Fields Curb Planting as Demand for Ethanol, Animal Feed Climbs (Source: Bloomberg)
U.S. corn farmers were unable to plant on soggy or flooded fields from Arkansas to North Dakota this year, signaling tighter grain stockpiles even after rising demand for livestock feed and ethanol sent prices surging. The U.S. Department of Agriculture may cut its planting forecast tomorrow to 90.629 million acres, according to a Bloomberg News survey of 31 analysts. That’s less than the 92.178 million that farmers predicted in a government survey three months ago and would be the USDA’s biggest such reduction from the March forecast since 1995.
Corn Rises for Second Day as U.S. Crop Conditions Worsen; Soybeans Climb (Source: Bloomberg)
Corn advanced for a second day, extending the biggest gain in almost three months, and soybeans rose on declining crop conditions in the U.S., the biggest exporter of both commodities. U.S. corn was rated 68 percent good or excellent as of June 26, down from 73 percent a year earlier, the Department of Agriculture said this week. Sixty-five percent of soybeans earned top ratings, down from 67 percent in 2010, USDA data show.
China's 2011 Corn Buys From US At Least 1.7 Mln Tons -Executives (Source: CME)
China has bought at least 1.7 million metric tons of U.S. corn in the last four months--including 700,000 tons in recent weeks, traders, shipping executives and cargo surveyors said. More sales are in the pipeline, and although the figure couldn't immediately be confirmed, there is speculation that China has made deals for a further 800,000 tons, they said. China's purchases are significant because U.S. corn stocks are dwindling and are likely to hit a 15-year low of 18.5 million tons by the end of August. China became a net importer of corn in 2010 for the first time in 15 years, and its purchases amid current tight supply could buoy global prices. The executives said all purchases are to replenish government stocks. Chinese government officials couldn't be reached for comment.
Traders didn't give the exact prices of the deals but said that late last week, when some of the deals were finalized, U.S. corn was offered around $338 a ton, cost and freight for shipment to China in September from the Pacific Northwest. Offers for August shipment to China from the U.S. Gulf were around $342/ton, C&F. "U.S. corn delivered into Chinese ports is now cheaper than grain in the local markets, but taxes of around 14% for private imports and [the] cost of transporting it to mills is a deterrent," said a Washington-based corn industry executive. However, such pitfalls aren't a factor for imports to build state reserves, he noted. Traders said that last week, ex-warehouse corn prices in northern China were around $357/ton, while ex-railhead rates in southern China, which is distant from corn-producing regions, was around $377/ton.
"China is buying when global prices are off highs, and the first such purchase of a little over 1.0 million tons was some time in March," said an executive familiar with the deals. He said subsequent deals totaling several hundred thousand tons were done in the second week of May and then again in the second half of June. Most traders said China bought at least 700,000 tons in recent weeks through global trading companies. The pace of China's purchases indicates that imports may hit 4.0 million tons by the end of the year, said the Washington-based executive. This would be more than double last year's total imports of around 1.6 million tons.
Sugar dips, buoyed by Brazil crop data; coffee steady
LONDON, June 29 (Reuters) - ICE raw sugar futures eased from near three-month highs in early trading on Wednesday, buoyed by lower-than-expected crush data in top grower Brazil, while arabica coffee was little changed, supported by news that a minor Brazilian coffee region was hit by frost.
Sugar futures edged down in light early trade, supported by lower-than-expected crush data in Brazil as dealers expressed concerns over a slow start to the harvest in the centre-south.
Frost hits some Brazil coffee; impact may be minor
BRASILIA, June 28 (Reuters) - Frost hit parts of at least two of Brazil's coffee-producing states overnight, agronomists said on Tuesday, but damage observed suggested the freeze was unlikely to put a major dent in next year's output.
The freeze hit Parana state, which produces about 5 percent of the coffee in the world's top producer, and parts of Sao Paulo state which grows about a 10th of national output.
Global Agriculture Supply Worsening May Spur Food Shortages, Rogers Says (Source: Bloomberg)
The global agriculture supply situation has worsened and a failure to boost food production fast enough to meet demand may lead to shortages, said investor Jim Rogers, chairman of Rogers Holdings. “We’ve got to do something or we’re going to have no food at any price at times in the next few years,” Rogers said in a Bloomberg Television interview with Rishaad Salamat today in Singapore. “I still own agriculture. If I found something to buy, I would buy it.”
Commodities midway through 20 pct correction-UBS
LONDON, June 28 (Reuters) - Commodities are due to be weak over the next several months, having completed about half of an expected 20 percent correction as investors unwind positions built up during stimulus programmes, UBS said on Tuesday.
"We've done about 10 percent on copper... so we reckon that we're about halfway there," global commodity analyst Julien Garran told a briefing.
EPA Gives Go Ahead To Boost Ethanol In Gasoline (Source: CME)
The Environmental Protection Agency cleared the way for gasoline companies to begin adding more ethanol to the gasoline mix pumped out at stations. Drivers may soon see an orange and black sticker at the pump warning that the fuel dispensed there contains "Up to 15% ethanol" and is to be used only in "2001 and newer passenger vehicles" or flexible-fuel vehicles that are designed to run on a blend as high as 85%. Until now, the highest percentage of ethanol allowed to be blended into most gasoline was 10%, but the new EPA regulation allows for that to rise to 15%. The new EPA label warns that using a 15% ethanol blend in cars made before 2001 may damage the engine. The EPA approved the 15% ethanol mix, or E15, in October 2010 and is now issuing the specific guidelines and labels needed to allow the higher blend to be sold at gas stations. Gasoline companies must first register with the EPA before they distribute it, an EPA spokeswoman said.
"This is another step in the process to get E15 into the marketplace later this year, which will create U.S. jobs, improve the environment and strengthen national security by displacing foreign oil," Tom Buis, chief executive for the ethanol lobbying group Growth Energy, said. The allowance for more ethanol in gasoline will likely have only a minor impact on ethanol production in the near term because many of the cars on the road were made before 2001, said Joe Glauber, the U.S. Department of Agriculture's chief economist. The positive news for the ethanol group comes shortly after a sharp blow to the industry by the Senate, which voted on June 16 to do away with a $6 billion tax credit for ethanol blenders and a 54-cent-per-gallon tariff on ethanol imports. And there is plenty of opposition to the rise of corn-based ethanol in the U.S., especially in the livestock industry. Ranchers blame rising ethanol production for higher corn-based feed prices.
Corn consumption by ethanol producers is at a record high 5.05 billion bushels expected this year by the USDA.
Crude Oil Climbs for Third Day After U.S. Supplies Drop More Than Expected (Source: Bloomberg)
Oil climbed a third day in New York after a report showed U.S. crude stockpiles fell almost three times as much as analysts forecast and Greece passed austerity measures aimed at preventing a debt default which may have disrupted Europe’s economy. Futures gained as much as 0.6 percent after the biggest two-day rally in seven weeks. The Energy Department said crude inventories declined 4.38 million barrels, compared with a median analyst projection for a 1.5 million-barrel decrease. Oil has risen 4.5 percent since June 23, when it dropped 4.6 percent after the International Energy Agency announced the release of 60 million barrels from strategic reserves, including 30 million from the U.S.
Japan May zinc exports fall 32 pct yr/yr
TOKYO, June 29 (Reuters) - Japan's refined zinc exports for May fell 32 percent from a year earlier to 5,905 tonnes, narrowing from April's year-on-year drop of 40 percent, Ministry of Finance data showed on Wednesday, partly reflecting a recovery in production.
The drop in May exports was also narrower than a 34.6 percent year-on-year decline in March, while exports rose 17 percent from April.
Japan May copper exports plunge 52 pct yr/yr
TOKYO, June 29 (Reuters) - Japan's refined copper exports plunged 52 percent in May from a year earlier to 23,764 tonnes for an eighth straight month of year-on-year declines, Ministry of Finance data showed on Wednesday, reflecting slowing demand from China, the world's top copper consumer.
But exports inched up 0.8 percent from April, with China's share also improving to 36 percent in May from 29 percent in April. China accounted for 48.5 percent of Japanese refined copper exports in March.
Japan May rare earth imports from China down 3 pct m/m
TOKYO, June 29(Reuters) - Japan's imports of rare earths from China fell 3 percent in May from April, the first month-on-month drop in three months, as the price of the metal surged, though demand could pick-up later in the year as the country continues to recover from a massive earthquake.
China, which produces 97 percent of global rare earth supplies, has been tightening trade in the strategic metal which is used in high-tech electronics, magnets and batteries, causing concerns globally about supply and triggering prices to jump.
Iron Ore-Prices at 3-month lows, miners put more cargo on spot
SINGAPORE, June 29 (Reuters) - Spot iron ore prices languished at three-month lows and deals remained scarce on Wednesday as lower steel prices in top producer China continued to limit buying interest for the steelmaking ingredient.
Global miners BHP Billiton and Rio Tinto are selling more cargoes on the spot market with Chinese steel mills opting to buy at spot rates as the material is cheaper than on long-term contracts, traders said.
Global iron ore swaps volume seen swelling to 80 mln T in 2015
SINGAPORE, June 28 (Reuters) - Global volume of iron ore swaps may jump to 80 million tonnes by 2015, around four times last year's level, as interest in the hedging tool rises, an industry official said on Tuesday.
The projected volume represents nearly 13 percent of China's iron ore imports of more than 618 million tonnes last year.
METALS-Copper rises on dollar, Greek austerity plan vote
LONDON, Jun 29 (Reuters) - Copper rose on Wednesday, helped by a softer dollar and as market sentiment improved on prospects that Greece's government will pass an austerity plan to save the country from bankruptcy.
Three-month copper on the London Metal Exchange was 1 percent higher at $9,165 a tonne by 1040 GMT, from $9,072 at the close on Tuesday.
PRECIOUS-Gold gains as invesors grow bolder over Greece
LONDON, June 29 (Reuters) - Gold rose for a second day on Wednesday as growing certainty that Greece will approve steep budget cuts boosted the euro and other risk-related assets such as commodities and higher-yielding currencies.
Gold often declines in periods of greater investor appetite, but any flickers of optimism over a solution to the Greek debt crisis have also resulted in a rise in the euro against the dollar, which has cushioned the bullion price.
Gold Futures Advance in New York as Decline to a 5-Week Low Prompts Buying (Source: Bloomberg)
Gold gained for a second day in New York as a drop to a five-week low spurred some investors to buy the metal as an alternative to currencies. Futures touched $1,490.80 an ounce on June 27, the lowest price since May 20. Greek Prime Minister George Papandreou today clinched enough votes to pass the first part of an austerity plan aimed at meeting European Union aid requirements and staving off a default.
Scrapping Record Fails to End ‘Nightmare’ for Shipowners: Freight Markets (Source: Bloomberg)
Shipowners are scrapping capesize vessels at a record pace after rates plunged about 50 percent in a year. It’s still not enough to end losses. Forty-eight capesizes, usually used for hauling iron ore or coal, have been demolished this year through June 24, compared with 18 in the whole of last year, according to shipbroker Clarkson Plc. Rates will remain below about $11,000 a day for the rest of the year, compared with a breakeven point of about $23,000, according to Johnson Leung, head of regional transport at Jefferies Group Inc. in Hong Kong.
Baltic index falls, capesize gains lose steam
LONDON, June 28 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell on Tuesday as the pace of cargo activity on the larger capesize market slowed.
Brokers said they were watching for further developments in China, which is facing its worst power shortages in years and likely to have an impact on dry freight activity. Uncertainty over prospects for the world economy could also potentially hurt demand for raw materials.
DryShips adds more options to buy drillships - Wells Fargo
June 27 (Reuters) - DryShips Inc , a dry bulk shipper and oil and natural gas driller, has added options for two more drillships with a base price of $608 million each, Wells Fargo Securities said in a note following the company's analyst day on Friday.
The Greece-based company now has three options with Samsung Heavy Industries , and if all of them are exercised, DryShips' fleet will comprise two semi-submersible rigs and 10 drillships.
20110630 1027 Soy Oil & Palm Oil Related News.
Soy Oil chart reading : correction range bound downside biased.
ITS CPO export up 6.3% to 1,440,173 tonnes for the period of 1~30 Jun 2011.
SGS CPO export up 5.95% to 1,434,464 tonnes for the period of 1~30 Jun 2011.
Soybeans (Source: CME)
US soybean futures finish higher after a choppy session as traders evened positions ahead of Thursday's key government updates on acreage and inventories. The market was supported by a combination of strength from external financial markets and supply uncertainties. However, profit-taking and traders looking to minimize risk ahead of Thursday's reports capped advances. CBOT November soy ended up 4c at $13.23/bushel.
Soybean Meal/Oil (Source: CME)
Soy product futures end mixed, with soyoil futures rising on support from higher crude oil, with traders taking on long soyoil positions vs short soymeal on spreads. Soymeal futures drifted lower, succumbing to pressure from declining cash basis levels amid declining livestock feed demand and increased competition for distillers dried gains in feed rations, analysts said. CBOT Dec soyoil ended up 0.42c/pound; Dec soymeal finish down $0.60 at $338.10/short ton.
Palm oil up on technical buying, strong export data eyed
KUALA LUMPUR, Jun 29 (Reuters) - Malaysian palm oil futures rose 1.5 percent on Wednesday as traders continued to adjust their positions and eye strong export data after the market fell to an eight-month low earlier this week.
"It's a good opportunity for short covering and the market will rally back to start afresh in July," said a trader in Kuala Lumpur.
Fresh showers to boost India soybean sowing
MUMBAI, June 28 (Reuters) - Soybean sowing in India's central Madhya Pradesh state, the biggest producer in the country, is likely to accelerate in a week, although it has picked up in second biggest producer Maharashtra after both states received good rainfall in the past two days.
There were concerns about soybean sowing in the two states that account for over 85 percent of total output due to poor rainfall in the first half of June.
Wednesday, June 29, 2011
20110629 1812 FCPO EOD Daily Chart Study.
FCPO closed : 3109, changed : +46 points, volume : lower.
Bollinger band reading : pullback correction downside biased.
MACD Histrogram : recovering, seller taking profit.
Support : 3100, 3070, 3050, 3020 level.
Resistance : 3150, 3200, 3250, 3270 level.
Comment :
Technical rebound FCPO closed recorded gain with decreasing volume traded while overnight soy oil closed higher and currently continue to rebound higher.
Possible improve demand ahead of tomorrow export data release triggered seller to lock profit and avoiding over exposure. Another factor to watch will be
Daily chart formed an up doji bar candle closed above and away from lower Bollinger band level after market opened gap up, traded range bound tested higher resistance within 28 points range market and closed near the high of the day above resistance turned support level.
Market are currently having pullback correction within a downside biased market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with larger cut loss and profit target.
20110629 1737 FKLI EOD Daily Chart Study.
Bollinger band reading : upside biased with possible pullback correction.
MACD Histrogram : rising, buyer patrolling.
Support : 1565, 1550, 1540, 1530 level.
Resistance : 1580, 1590, 1600, 1610 level.
Comment :
FKLI closed recorded gain with lower volume participation doing about 1 point premium compare to cash market that closed firmer while Asia and European market traded mostly higher with overnight U.S. market closed higher.
Markets awaits vote in the Greek parliament that investors hope will approve an austerity programme(tax increases and spending cuts) demanded by international lenders result and feel optimistic that the unpopular package will be approved.
Daily chart formed a small body up doji bar candle closed above upper Bollinger band after market opened higher, moved side ways within a narrow 4 points range bound market toward the end to closed near the high of the day as Jun 2001 contract near expiry.
Chart wise, market is likely to trade upside biased with possible pullback correction testing support and resistance level.
When to buy : buy at support or weakness with moderate cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20110629 1455 Global Market & Commodities Related News.
Optimism before Greek vote lifts Asian stocks
SINGAPORE, June 29 (Reuters) - Asian shares rose, with Tokyo stocks hitting a seven-week high, and the euro clung to gains on Wednesday ahead of a vote in the Greek parliament that investors hope will approve an austerity programme demanded by international lenders.
"There's some cautious optimism ahead of the Greek votes this week," said Hiroaki Osakabe, a fund manager at Chibagin Asset Management in Tokyo.
Corn at one-week top, wheat rallies on crop conditions
SINGAPORE, June 29 (Reuters) - Chicago corn futures rose 2.4 percent on Wednesday, while wheat added almost 2 percent as renewed concerns over U.S. crops and investor positioning ahead of a key government report buoyed the markets.
"I think that Minneapolis wheat led grain markets higher as there is talk about lost acres due to wet weather in the U.S.," said Brett Cooper, a senior manager of markets at FCStone Australia.
Indonesia in talks over rice imports from Vietnam -traders
HANOI, June 29 (Reuters) - Indonesia has been in talks to import between 400,000 and 600,000 tonnes of rice from Vietnam, with shipment possible in the third quarter of this year, traders and a state-run newspaper said on Wednesday.
The official Vietnam Economic Times newspaper said if the government-to-government contract is reached, 600,000 tonnes of rice would be shipped in August. It gave no details on pricing or the rice grades.
ANRPC revises up global rubber output to 9.96 mln T
SINGAPORE, June 29 (Reuters) - Key global natural rubber production was forecast at 9.96 million tonnes in 2011, slightly higher than a previous estimate of 9.94 million tonnes on an upward output revision by the second-largest producer Indonesia, industry group ANRPC said on Wednesday.
But a downward revision was still possible because yielding areas in Indonesia were expected to drop by 37,000 hectares this year, while falling rubber prices could also curb supply, the Association of Natural Rubber Producing Countries (ANPRC) said.
Vietnam 2011 paddy output to rise to 41 mln T-report
HANOI, June 29 (Reuters) - Vietnam, the world's second-largest rice exporter after Thailand, plans to raise output this year to 41 million tonnes of paddy, up 2.5 percent from 2010 when it already shipped a record volume, a state-run newspaper reported on Wednesday.
Higher production of the staple in Vietnam would not only help secure more food security for a population of 87 million, but also raise the country's export capacity, thus helping to ease pressure on regional and global food supply.
Australia's 2011/12 sugar exports start despite weather woes
SYDNEY, June 28 (Reuters) - Australia's major exporter of raw sugar, Queensland Sugar Ltd (QSL), has kicked off its export programme for the current marketing year on a solid note despite weather induced setbacks last year, the firm said on Tuesday.
This season's first sugar exports left Townsville in Queensland, Australia's major sugar cane growing state, last week. The load of about 27,000 tonnes of raw sugar was destined for New Zealand, QSL said in a report.
Oil steady on Greece bailout hopes, tighter supply
SINGAPORE, June 29 (Reuters) - Brent crude steadied on Wednesday, near $109 a barrel, on growing optimism that the debt crisis in Greece will be resolved, avoiding a contagion in Europe.
"Any positive compromise within Europe, with Greece willing to make some sacrifices, will cause the euro and oil to rally," said Jeremy Friesen, a commodity strategist at Societe Generale.
LME Copper steady on hopes Greek austerity bill will pass
SHANGHAI, June 29 (Reuters) - LME Copper steadied on Wednesday as investors continued to bet that the Greek parliament will pass an unpopular austerity plan later in the day and bring respite from worries that a sovereign default by the country would affect other debt-laden euro zone nations and roil global markets.
"LME copper prices continue to be directed mainly by global macroeconomic events such as developments in the euro debt crisis and U.S. economic data," said Minmetals Futures Co analyst Yu Ye.
Japan May copper exports plunge 52 pct yr/yr
TOKYO, June 29 (Reuters) - Japan's refined copper exports plunged 52 percent in May from a year earlier to 23,764 tonnes for an eighth straight month of year-on-year declines, Ministry of Finance data showed on Wednesday, reflecting slowing demand from China, the world's top copper consumer.
But exports inched up 0.8 percent from April, with China's share also improving to 36 percent in May from 29 percent in April. China accounted for 48.5 percent of Japanese refined copper exports in March.
Gold edges up on Greece vote hopes, Asian buying
SINGAPORE, June 29 (Reuters) - Gold edged higher on Wednesday, as investors are optimistic that Greece's parliament will approve an austerity plan later in the day, likely to help underpin sentiment in bullion and other commodities.
"There are still reasons to buy gold, but just not any new reason for now," said Yingxi Yu, an analyst at Barclays Capital.
SINGAPORE, June 29 (Reuters) - Asian shares rose, with Tokyo stocks hitting a seven-week high, and the euro clung to gains on Wednesday ahead of a vote in the Greek parliament that investors hope will approve an austerity programme demanded by international lenders.
"There's some cautious optimism ahead of the Greek votes this week," said Hiroaki Osakabe, a fund manager at Chibagin Asset Management in Tokyo.
Corn at one-week top, wheat rallies on crop conditions
SINGAPORE, June 29 (Reuters) - Chicago corn futures rose 2.4 percent on Wednesday, while wheat added almost 2 percent as renewed concerns over U.S. crops and investor positioning ahead of a key government report buoyed the markets.
"I think that Minneapolis wheat led grain markets higher as there is talk about lost acres due to wet weather in the U.S.," said Brett Cooper, a senior manager of markets at FCStone Australia.
Indonesia in talks over rice imports from Vietnam -traders
HANOI, June 29 (Reuters) - Indonesia has been in talks to import between 400,000 and 600,000 tonnes of rice from Vietnam, with shipment possible in the third quarter of this year, traders and a state-run newspaper said on Wednesday.
The official Vietnam Economic Times newspaper said if the government-to-government contract is reached, 600,000 tonnes of rice would be shipped in August. It gave no details on pricing or the rice grades.
ANRPC revises up global rubber output to 9.96 mln T
SINGAPORE, June 29 (Reuters) - Key global natural rubber production was forecast at 9.96 million tonnes in 2011, slightly higher than a previous estimate of 9.94 million tonnes on an upward output revision by the second-largest producer Indonesia, industry group ANRPC said on Wednesday.
But a downward revision was still possible because yielding areas in Indonesia were expected to drop by 37,000 hectares this year, while falling rubber prices could also curb supply, the Association of Natural Rubber Producing Countries (ANPRC) said.
Vietnam 2011 paddy output to rise to 41 mln T-report
HANOI, June 29 (Reuters) - Vietnam, the world's second-largest rice exporter after Thailand, plans to raise output this year to 41 million tonnes of paddy, up 2.5 percent from 2010 when it already shipped a record volume, a state-run newspaper reported on Wednesday.
Higher production of the staple in Vietnam would not only help secure more food security for a population of 87 million, but also raise the country's export capacity, thus helping to ease pressure on regional and global food supply.
Australia's 2011/12 sugar exports start despite weather woes
SYDNEY, June 28 (Reuters) - Australia's major exporter of raw sugar, Queensland Sugar Ltd (QSL), has kicked off its export programme for the current marketing year on a solid note despite weather induced setbacks last year, the firm said on Tuesday.
This season's first sugar exports left Townsville in Queensland, Australia's major sugar cane growing state, last week. The load of about 27,000 tonnes of raw sugar was destined for New Zealand, QSL said in a report.
Oil steady on Greece bailout hopes, tighter supply
SINGAPORE, June 29 (Reuters) - Brent crude steadied on Wednesday, near $109 a barrel, on growing optimism that the debt crisis in Greece will be resolved, avoiding a contagion in Europe.
"Any positive compromise within Europe, with Greece willing to make some sacrifices, will cause the euro and oil to rally," said Jeremy Friesen, a commodity strategist at Societe Generale.
LME Copper steady on hopes Greek austerity bill will pass
SHANGHAI, June 29 (Reuters) - LME Copper steadied on Wednesday as investors continued to bet that the Greek parliament will pass an unpopular austerity plan later in the day and bring respite from worries that a sovereign default by the country would affect other debt-laden euro zone nations and roil global markets.
"LME copper prices continue to be directed mainly by global macroeconomic events such as developments in the euro debt crisis and U.S. economic data," said Minmetals Futures Co analyst Yu Ye.
Japan May copper exports plunge 52 pct yr/yr
TOKYO, June 29 (Reuters) - Japan's refined copper exports plunged 52 percent in May from a year earlier to 23,764 tonnes for an eighth straight month of year-on-year declines, Ministry of Finance data showed on Wednesday, reflecting slowing demand from China, the world's top copper consumer.
But exports inched up 0.8 percent from April, with China's share also improving to 36 percent in May from 29 percent in April. China accounted for 48.5 percent of Japanese refined copper exports in March.
Gold edges up on Greece vote hopes, Asian buying
SINGAPORE, June 29 (Reuters) - Gold edged higher on Wednesday, as investors are optimistic that Greece's parliament will approve an austerity plan later in the day, likely to help underpin sentiment in bullion and other commodities.
"There are still reasons to buy gold, but just not any new reason for now," said Yingxi Yu, an analyst at Barclays Capital.
20110629 1119 Global Market & Commodities Related News.
GLOBAL MARKETS: Optimism before Greek vote lifts Asian stocks
SINGAPORE, June 29 (Reuters) - Asian shares rose, with Tokyo stocks hitting a seven-week high,and the euro clung to gains on Wednesday ahead of a vote in the Greek parliament that investors hope will approve an austerity programme demanded by international lenders.
Optimism that the unpopular package of tax increases and spending cuts will be approved by legislators boosted demand for riskier assets on Tuesday, pushing world stocks up 1 percent and oil prices up more than 2 percent.
OIL: Oil rises on optimism about Greece, weak dollar
NEW YORK, June 28 (Reuters) - Oil prices rose more than 2 percent on Tuesday on optimism that Greece can pass an unpopular austerity program as Europe fashions a solution to Athens' debt woes and also on lift from a weak dollar.
"Despite the violence in Greece, there is the hope that the austerity plan will be passed. So, that puts Greece on the back burner for now," said Phil Flynn, analyst at PFGBest Research in Chicago.
NATURAL GAS: Natural gas ends higher, July expires on firm note
NEW YORK, June 28 (Reuters) - U.S. natural gas futures ended higher on Tuesday for a third day, with technical buying and warm U.S. weather this week driving the July contract to a strong expiration despite comfortable supplies.
"Hotter forecasts during early July were the driver this morning, getting some help from the tropical formation in the Gulf," Gelber & Associates analyst Pax Saunders said in a report,noting the Gulf of Mexico system was a reminder that tropical activity was just starting to pick up.
US gasoline demand down on seasonal fluctuations
NEW YORK, June 28 (Reuters) - U.S. retail gasoline demand declined last week, reversing three weeks of gains despite falling prices, because of seasonal fluctuations ahead of the U.S. Independence Day holiday, MasterCard said on Tuesday.
Average gasoline demand in the week to June 24 fell 1.8 percent from a year ago and was down 0.2 percent from last week's levels, MasterCard said, in its weekly SpendingPulse report.
COMMODITIES: Rally on eurozone optimism; CRB up most in 6 weeks
NEW YORK, June 28 (Reuters) - Commodities posted their biggest gain in 1-1/2 months on Tuesday,
as hopes of a resolution to debt woes in European nations like Greece and Portugal lifted investors' risk appetite.
"We continue to believe that the short-term bias in most commodity complexes will be lower still, although the rate of decline may start to flatten out," said Edward Meir, energy and metals analyst at MF Global in New York.
SINGAPORE, June 29 (Reuters) - Asian shares rose, with Tokyo stocks hitting a seven-week high,and the euro clung to gains on Wednesday ahead of a vote in the Greek parliament that investors hope will approve an austerity programme demanded by international lenders.
Optimism that the unpopular package of tax increases and spending cuts will be approved by legislators boosted demand for riskier assets on Tuesday, pushing world stocks up 1 percent and oil prices up more than 2 percent.
OIL: Oil rises on optimism about Greece, weak dollar
NEW YORK, June 28 (Reuters) - Oil prices rose more than 2 percent on Tuesday on optimism that Greece can pass an unpopular austerity program as Europe fashions a solution to Athens' debt woes and also on lift from a weak dollar.
"Despite the violence in Greece, there is the hope that the austerity plan will be passed. So, that puts Greece on the back burner for now," said Phil Flynn, analyst at PFGBest Research in Chicago.
NATURAL GAS: Natural gas ends higher, July expires on firm note
NEW YORK, June 28 (Reuters) - U.S. natural gas futures ended higher on Tuesday for a third day, with technical buying and warm U.S. weather this week driving the July contract to a strong expiration despite comfortable supplies.
"Hotter forecasts during early July were the driver this morning, getting some help from the tropical formation in the Gulf," Gelber & Associates analyst Pax Saunders said in a report,noting the Gulf of Mexico system was a reminder that tropical activity was just starting to pick up.
US gasoline demand down on seasonal fluctuations
NEW YORK, June 28 (Reuters) - U.S. retail gasoline demand declined last week, reversing three weeks of gains despite falling prices, because of seasonal fluctuations ahead of the U.S. Independence Day holiday, MasterCard said on Tuesday.
Average gasoline demand in the week to June 24 fell 1.8 percent from a year ago and was down 0.2 percent from last week's levels, MasterCard said, in its weekly SpendingPulse report.
COMMODITIES: Rally on eurozone optimism; CRB up most in 6 weeks
NEW YORK, June 28 (Reuters) - Commodities posted their biggest gain in 1-1/2 months on Tuesday,
as hopes of a resolution to debt woes in European nations like Greece and Portugal lifted investors' risk appetite.
"We continue to believe that the short-term bias in most commodity complexes will be lower still, although the rate of decline may start to flatten out," said Edward Meir, energy and metals analyst at MF Global in New York.
20110629 1048 Global Economic Related News.
U.S: Consumer spending stagnated in May as prices rose. Purchases were little changed, the weakest outcome since June 2010, after a revised 0.3% MoM gain the prior month that was smaller than previously estimated. Prices excluding food and energy rose more than forecast. (Source: Bloomberg)
U.S: Fed seen purchasing USD 300b in treasuries after QE2 as the central bank uses its USD 2.86tr balance sheet to keep interest rates low. While the USD 600b purchase program, known as QE2, winds down, the Fed said June 22 that it will continue to buy Treasuries with proceeds from the maturing debt it currently owns. That could mean purchases of as much as USD 300b of government debt over the next 12 months without adding money to the financial system. (Source: Bloomberg)
U.S: Consumer confidence in June falls to seven-month low as Americans grew concerned about the outlook for jobs and wages. The Conference Board's sentiment index decreased to 58.5 from a revised 61.7 in May that was higher than previously estimated. (Source: Bloomberg)
U.S: Home prices in 20 cities fell 4% YoY in April, showing the housing market remains an obstacle for the U.S. recovery. The S&P/Case-Shiller index of property values in 20 cities fell 4% YoY in April, the biggest drop since November 2009. From March to April, prices fell 0.1% MoM on a seasonally adjusted basis, the smallest decline since July 2010. (Source: Bloomberg)
US stocks rise amid Greek bailout expectations as Nike jumps
US stocks rose, sending the Standard & Poor‟s 500 Index to its highest level in three weeks, amid optimism European nations will take action to prevent a Greek default and after Nike Inc‟s earnings beat estimates. Nike rallied 10% as higher North American sales helped the world‟s largest sporting-goods company top profit projections. Caterpillar Inc, Exxon Mobil Corp and Alcoa Inc added at least 2.1%, pacing gains in companies most-tied to economic growth. Home Depot Inc climbed 2.4% after the largest US home-improvement retailer said that it is targeting about USD3.5bn in share repurchases for 2011. The S&P 500 advanced 1.3% to 1,296.67 at 4 pm in New York, rising to the highest closing level since 3 June 2011. The Dow Jones Industrial Average increased 145.13 points, or 1.2%, to 12,188.69 yesterday. More than 6.1bn shares changed hands on US exchanges at 5.12pm, 14% less than the three-month average through yesterday. (Bloomberg)
US: Consumer confidence falls to seven-month low
Consumer confidence dropped to a seven-month low in June as Americans grew concerned about the outlook for jobs and wages. The Conference Board‟s sentiment index decreased to 58.5 from a revised 61.7 in May that was higher than previously estimated, figures from the New York-based private research group showed today. Home prices fell in the year ended in April by the most in 17 months, another report showed. Unemployment hovering around 9%, deterioration in the housing market and a drop in share prices may restrain Americans‟ sentiment, raising the risk that the biggest part of the economy will stagnate. The Federal Reserve last week kept in place record monetary stimulus to help nurture the expansion through what it views is a “temporary” slowdown. (Bloomberg)
Germany: Harmonized inflation unexpectedly held steady in June as the European Central Bank prepares to raise interest rates for a second time this year. The inflation rate, calculated using a harmonized European Union method, held at 2.4% MoM from May. Prices remained unchanged from the previous month. (Source: Bloomberg)
E.U: Creditors move closer to Greek debt rollover plan. Greek creditors may be headed toward a rollover agreement involving 70% of their bonds to prevent a default and meet politicians' calls that they contribute to Greece's second rescue in as many years. Under the French proposal, half the Greek debt held by banks and insurers maturing in the next three years would be swapped for new 30-year Greek bonds. The redemptions from another 20% would be invested in a special purpose vehicle that would serve as collateral for the banks, two people familiar with the plan said. (Source: Bloomberg)
UK: Economy expanded 0.5% in first quarter, led by exports
Exports returned the British economy to growth in the first quarter as soaring food and energy costs eroded household incomes and curbed consumer spending. Gross domestic product rose 0.5% from the fourth quarter, the same as previously estimated, the Office for National Statistics said. The pace of growth from a year earlier was revised to 1.6% from 1.8%. Concern about economic growth is taking precedence over inflation as rising prices and government budget cuts put Britain on course for the biggest squeeze on living standards since the 1970s. The Bank of England kept its key interest rate at a record low this month and some officials said more bond purchases may be needed if weakness persists. (Bloomberg)
Greece: Police fire tear gas as strike overshadows budget vote
Greek police fired tear gas to disperse protesters in the center of Athens as labor unions shut down government services before a vote on austerity measures that may determine if the nation can avoid a default. Lawmakers debated Prime Minister George Papandreou‟s five-year plan of budget cuts and asset sales for a second day before a vote today at 2 pm Athens time. A crowd estimated by police to number 20,000 thronged outside Parliament in protests that descended into violence as riot police fired tear gas in battles with hooded youths who smashed windows at a McDonald‟s Corp restaurant and set two vans on fire. The vote today will be Papandreou‟s second survival test in a week and has to succeed for the cash-strapped nation to tap a fifth loan payment from last year‟s EUR 110bn (USD157bn) rescue. Failure to pass the government‟s EUR 78bn plan may lead to the euro area‟s first sovereign default.
IMF: Emerging markets will press Lagarde for IMF governance changes
Christine Lagarde won the support of emerging-market nations for her successful bid to become managing director of the International Monetary Fund by promising them greater influence at the global lender. Now she‟ll be under pressure to deliver. Lagarde, the French finance minister, yesterday was selected by the Washington-based IMF‟s board over her sole rival, Mexico‟s Agustin Carstens. She garnered endorsements from emerging economies such as India and Brazil as well as European Union countries and the US. “Lagarde had to send some signals, if not make some actual deals, with emerging market countries to be able to get in,” Kevin Gallagher, associate professor of international relations at Boston University, said in a telephone interview. “They‟re going to hold her accountable or she‟s going to have a rough time there.” In the course of an election-style campaign that took her to Brazil, China and the Middle East, Lagarde promised to boost the clout of developing nations at the IMF and to give more
management jobs to people from those countries. (Bloomberg)
China: Industrial companies' YTD profit growth slowed as the government tightened credit to curb inflation and prevent asset bubbles. Net income rose 27.9% YoY in the first five months to CNY 1.92tr (USD 297b), the National Bureau of Statistics said on its website. That compares with a 29.7% YoY gain for January-through-April. (Source: Bloomberg)
China: World’s worst property bonds plunge on Wen curbs
China‟s homebuilders, the world‟s most-indebted, are handing bond investors the worst returns among developers as curbs on speculation and efforts to control inflation drive yield premiums to record levels. Premier Wen Jiabao boosted minimum down payments for second-home purchases and introduced taxes on residential investment in Shanghai and the southwestern city of Chongqing as rising house prices helped push inflation to the highest level in almost three years in May. Nine of the world‟s 10 most debt- laden companies in the industry are Chinese, led by Poly Real Estate Group Ltd.,
South Korea: Current-account surplus widens to 7-month high
South Korea‟s current-account surplus widened to seven-month high in May as car and steelmakers boosted overseas shipments and dividend payments to foreign shareholders shrank. The surplus was USD2.26bn, compared with a revised USD1.28bn in April, the Bank of Korea said. The current account is the broadest measure of trade, tracking goods, services and investment income. South Korea‟s exports have climbed at a double-digit pace since November 2009 and hit a record in April even as the won appreciated. A slowdown in US growth and the fallout from Europe‟s sovereign debt crisis risk weighing on shipments. (Bloomberg)
Japan: Retail sales fell at a slower pace than economists estimated in May. Sales slid 1.3% YoY, the Trade Ministry said in Tokyo, the smallest drop since the March 11 earthquake. (Source: Bloomberg)
Japan: Considers JPY 230b (USD 2.8b) plan for nuclear assistance for aid to Tokyo Electric Power Co. and radiation monitoring in its planned extra budget, according to a draft outline prepared by the Finance Ministry. Prime Minister Naoto Kan's government has yet to release details of the JPY 2tr supplementary budget, which will need parliamentary approval. (Source: Bloomberg)
Hong Kong: May export growth rebounds from 17-month low on demand from Asian nations including China. Overseas shipments gained 10% YoY to HKD 280b (USD 36b. In April, shipments rose 4.1% MoM. (Source: Bloomberg)
Thailand: Manufacturing output declined for the fourth consecutive month in May as supply disruptions after the earthquake in Japan, the nation's largest trading partner, hurt vehicle production. The industrial production index fell 3.88% YoY compared with a revised 8.14% YoY decline in April. (Source: Bloomberg)
Vietnam: Trade deficit narrowed in June, boosting the government's efforts to contain the shortfall amid declining investment commitments and one of the smallest foreign reserves in Asia. The shortfall was USD 400m, compared with a revised USD1.42b in May. The deficit in the first half of the year reached USD 6.65b, the agency said. (Source: Bloomberg)
U.S: Fed seen purchasing USD 300b in treasuries after QE2 as the central bank uses its USD 2.86tr balance sheet to keep interest rates low. While the USD 600b purchase program, known as QE2, winds down, the Fed said June 22 that it will continue to buy Treasuries with proceeds from the maturing debt it currently owns. That could mean purchases of as much as USD 300b of government debt over the next 12 months without adding money to the financial system. (Source: Bloomberg)
U.S: Consumer confidence in June falls to seven-month low as Americans grew concerned about the outlook for jobs and wages. The Conference Board's sentiment index decreased to 58.5 from a revised 61.7 in May that was higher than previously estimated. (Source: Bloomberg)
U.S: Home prices in 20 cities fell 4% YoY in April, showing the housing market remains an obstacle for the U.S. recovery. The S&P/Case-Shiller index of property values in 20 cities fell 4% YoY in April, the biggest drop since November 2009. From March to April, prices fell 0.1% MoM on a seasonally adjusted basis, the smallest decline since July 2010. (Source: Bloomberg)
US stocks rise amid Greek bailout expectations as Nike jumps
US stocks rose, sending the Standard & Poor‟s 500 Index to its highest level in three weeks, amid optimism European nations will take action to prevent a Greek default and after Nike Inc‟s earnings beat estimates. Nike rallied 10% as higher North American sales helped the world‟s largest sporting-goods company top profit projections. Caterpillar Inc, Exxon Mobil Corp and Alcoa Inc added at least 2.1%, pacing gains in companies most-tied to economic growth. Home Depot Inc climbed 2.4% after the largest US home-improvement retailer said that it is targeting about USD3.5bn in share repurchases for 2011. The S&P 500 advanced 1.3% to 1,296.67 at 4 pm in New York, rising to the highest closing level since 3 June 2011. The Dow Jones Industrial Average increased 145.13 points, or 1.2%, to 12,188.69 yesterday. More than 6.1bn shares changed hands on US exchanges at 5.12pm, 14% less than the three-month average through yesterday. (Bloomberg)
US: Consumer confidence falls to seven-month low
Consumer confidence dropped to a seven-month low in June as Americans grew concerned about the outlook for jobs and wages. The Conference Board‟s sentiment index decreased to 58.5 from a revised 61.7 in May that was higher than previously estimated, figures from the New York-based private research group showed today. Home prices fell in the year ended in April by the most in 17 months, another report showed. Unemployment hovering around 9%, deterioration in the housing market and a drop in share prices may restrain Americans‟ sentiment, raising the risk that the biggest part of the economy will stagnate. The Federal Reserve last week kept in place record monetary stimulus to help nurture the expansion through what it views is a “temporary” slowdown. (Bloomberg)
Germany: Harmonized inflation unexpectedly held steady in June as the European Central Bank prepares to raise interest rates for a second time this year. The inflation rate, calculated using a harmonized European Union method, held at 2.4% MoM from May. Prices remained unchanged from the previous month. (Source: Bloomberg)
E.U: Creditors move closer to Greek debt rollover plan. Greek creditors may be headed toward a rollover agreement involving 70% of their bonds to prevent a default and meet politicians' calls that they contribute to Greece's second rescue in as many years. Under the French proposal, half the Greek debt held by banks and insurers maturing in the next three years would be swapped for new 30-year Greek bonds. The redemptions from another 20% would be invested in a special purpose vehicle that would serve as collateral for the banks, two people familiar with the plan said. (Source: Bloomberg)
UK: Economy expanded 0.5% in first quarter, led by exports
Exports returned the British economy to growth in the first quarter as soaring food and energy costs eroded household incomes and curbed consumer spending. Gross domestic product rose 0.5% from the fourth quarter, the same as previously estimated, the Office for National Statistics said. The pace of growth from a year earlier was revised to 1.6% from 1.8%. Concern about economic growth is taking precedence over inflation as rising prices and government budget cuts put Britain on course for the biggest squeeze on living standards since the 1970s. The Bank of England kept its key interest rate at a record low this month and some officials said more bond purchases may be needed if weakness persists. (Bloomberg)
Greece: Police fire tear gas as strike overshadows budget vote
Greek police fired tear gas to disperse protesters in the center of Athens as labor unions shut down government services before a vote on austerity measures that may determine if the nation can avoid a default. Lawmakers debated Prime Minister George Papandreou‟s five-year plan of budget cuts and asset sales for a second day before a vote today at 2 pm Athens time. A crowd estimated by police to number 20,000 thronged outside Parliament in protests that descended into violence as riot police fired tear gas in battles with hooded youths who smashed windows at a McDonald‟s Corp restaurant and set two vans on fire. The vote today will be Papandreou‟s second survival test in a week and has to succeed for the cash-strapped nation to tap a fifth loan payment from last year‟s EUR 110bn (USD157bn) rescue. Failure to pass the government‟s EUR 78bn plan may lead to the euro area‟s first sovereign default.
IMF: Emerging markets will press Lagarde for IMF governance changes
Christine Lagarde won the support of emerging-market nations for her successful bid to become managing director of the International Monetary Fund by promising them greater influence at the global lender. Now she‟ll be under pressure to deliver. Lagarde, the French finance minister, yesterday was selected by the Washington-based IMF‟s board over her sole rival, Mexico‟s Agustin Carstens. She garnered endorsements from emerging economies such as India and Brazil as well as European Union countries and the US. “Lagarde had to send some signals, if not make some actual deals, with emerging market countries to be able to get in,” Kevin Gallagher, associate professor of international relations at Boston University, said in a telephone interview. “They‟re going to hold her accountable or she‟s going to have a rough time there.” In the course of an election-style campaign that took her to Brazil, China and the Middle East, Lagarde promised to boost the clout of developing nations at the IMF and to give more
management jobs to people from those countries. (Bloomberg)
China: Industrial companies' YTD profit growth slowed as the government tightened credit to curb inflation and prevent asset bubbles. Net income rose 27.9% YoY in the first five months to CNY 1.92tr (USD 297b), the National Bureau of Statistics said on its website. That compares with a 29.7% YoY gain for January-through-April. (Source: Bloomberg)
China: World’s worst property bonds plunge on Wen curbs
China‟s homebuilders, the world‟s most-indebted, are handing bond investors the worst returns among developers as curbs on speculation and efforts to control inflation drive yield premiums to record levels. Premier Wen Jiabao boosted minimum down payments for second-home purchases and introduced taxes on residential investment in Shanghai and the southwestern city of Chongqing as rising house prices helped push inflation to the highest level in almost three years in May. Nine of the world‟s 10 most debt- laden companies in the industry are Chinese, led by Poly Real Estate Group Ltd.,
South Korea: Current-account surplus widens to 7-month high
South Korea‟s current-account surplus widened to seven-month high in May as car and steelmakers boosted overseas shipments and dividend payments to foreign shareholders shrank. The surplus was USD2.26bn, compared with a revised USD1.28bn in April, the Bank of Korea said. The current account is the broadest measure of trade, tracking goods, services and investment income. South Korea‟s exports have climbed at a double-digit pace since November 2009 and hit a record in April even as the won appreciated. A slowdown in US growth and the fallout from Europe‟s sovereign debt crisis risk weighing on shipments. (Bloomberg)
Japan: Retail sales fell at a slower pace than economists estimated in May. Sales slid 1.3% YoY, the Trade Ministry said in Tokyo, the smallest drop since the March 11 earthquake. (Source: Bloomberg)
Japan: Considers JPY 230b (USD 2.8b) plan for nuclear assistance for aid to Tokyo Electric Power Co. and radiation monitoring in its planned extra budget, according to a draft outline prepared by the Finance Ministry. Prime Minister Naoto Kan's government has yet to release details of the JPY 2tr supplementary budget, which will need parliamentary approval. (Source: Bloomberg)
Hong Kong: May export growth rebounds from 17-month low on demand from Asian nations including China. Overseas shipments gained 10% YoY to HKD 280b (USD 36b. In April, shipments rose 4.1% MoM. (Source: Bloomberg)
Thailand: Manufacturing output declined for the fourth consecutive month in May as supply disruptions after the earthquake in Japan, the nation's largest trading partner, hurt vehicle production. The industrial production index fell 3.88% YoY compared with a revised 8.14% YoY decline in April. (Source: Bloomberg)
Vietnam: Trade deficit narrowed in June, boosting the government's efforts to contain the shortfall amid declining investment commitments and one of the smallest foreign reserves in Asia. The shortfall was USD 400m, compared with a revised USD1.42b in May. The deficit in the first half of the year reached USD 6.65b, the agency said. (Source: Bloomberg)
20110629 1047 Malaysia Corporate Related News.
MAS: Chairman says privatisation of MAS possible, Mulls capacity cut. Malaysia Airlines (MAS) does not rule out the possibility of taking the company private or spin off its other divisions. Separately, MAS may cut passenger carrying capacity in the coming quarters as it seeks to blunt the impact of fuel prices. (Source: The Star, The Sun)
UEM Land: To oversee S'pore jobs. Khazanah Nasional Bhd has teamed up with Singapore's Temasek Holdings Pte Ltd to develop RM30b worth of real-estate projects in Singapore and Iskandar Malaysia. UEM Land and two units of Temasek Holdings have been appointed to oversee the development and marketing of the Singapore projects. (Source: The Edge Financial Daily)
EP Manu: Sees 2011 revenue driven by Saga FL, Myvi. EP Manufacturing Bhd expects FY11 revenue growth to be driven by sales of new Proton Saga FL and the Perodua Myvi replacement model. EP Manufacturing Bhd is the Tier-1 auto parts vendor to Proton and Perodua. (Source: The Sun)
O&G: Petronas finds oil in Vietnam. Petroleum Nasional Bhd and its partner PetroVietnam have been successful in their drilling campaign via the Diamond-4X exploration well in offshore Vietnam. The well tested the flow rate of 5,200 barrels per day of oil. (Source: The Star)
Muhibbah: No write down on APH payment. Muhibbah Engineering Bhd's MD Mac Ngan Boon has assured investors that the contruction outfit need not write down some RM371m due from its client, Asia Petroleum Hub (APH), which is reportedly facing funding woes. Muhibbah had obtained a corporate guarantee from APH assuring Muhibbah of the payment which could be slightly delayed as APH attempts to find an investor to inject additional funds for the development of its oil terminal in Johor. (Source: The Edge Financial Daily)
Voir: Aims for 10% revenue growth. Voir Holdings Bhd aims to achieve 10% revenue growth in the current financial year ending Dec 31, 2011. The company would be expanding its export markets of Ghana and Pakistan in the second half of the year while Africa, the Middle East and Asian countries has been identified as potential export markets for next year. (Source: The Star)
Hap Seng: Tower sale not ruled out. Hap Seng Consolidated Bhd is open to selling its half of Menara Citibank located on Jalan Ampang in Kuala Lumpur, but is not aggressively scouting for a buyer. (Source: Business Times)
Tradewinds: To add mills, warehouses. Tradewinds (Malaysia) Bhd will spend some RM160m to add three new palm oil mills and two sugar warehouses to expand. (Source: Business Times)
Green Packet unit in 4G tie-up with China Mobile
Packet One Networks (M) SB (P1), a subsidiary of Green Packet has sealed a technology cooperation agreement with China Mobile Ltd to spearhead the time division-long term evolution (TD-LTE) technology in Malaysia and South-East Asia. P1 CEO Michael Lai said both parties would be sharing expertise, with P1 in 4G WiMAX and China Mobile in TD-LTE technology deployment. (StarBiz)
No extra capex for SEB monorail project in Brazil
Scomi Engineering (SEB) will not require additional capital expenditure or investments for its portion of the RM2.6bn contract for the Line 17 monorail project in Sao Paulo, Brazil. In an e-mail yesterday, SEB chairman Datuk Zainun Aishah Ahmad said: “No further capital expenditure investment is required by SEB for this project; only funding for project financing and operational expenditure. (StarBiz)
E&O to develop iconic wellness township in Iskandar Malaysia
Eastern & Oriental (E&O) is embarking on developing an iconic wellness township in the flagship zone of Iskandar Malaysia in the southern part of the peninsula. In an exchange filing yesterday, E&O said its subsidiary Galaxy Prestige SB has signed a shareholders‟ agreement with Pulau Indah Ventures SB to form a 50:50 joint-venture (JV) company called Nuri Merdu SB to develop the township in the Heritage Cluster in Medini Central in Nusajaya. (Malaysian Reserve)
Muhibbah sees full APH payment
Muhibbah Engineering managing director Mac Ngan Boon has assured investors that the construction outfit need not write down some RM371m due from its client, Asia Petroleum Hub (APH), which is reportedly facing funding woes. Mac said Muhibbah had obtained a corporate guarantee from APH assuring Muhibbah of the payment which could be slightly delayed, as APH attempts to find an investor to inject additional funds for the development of its oild terminal in Johor. (Financial Daily)
Genting gets Birmingham casino licence
Genting UK plc, a unit of Genting Malaysia, has been granted a large casino premises licence in Birmingham, according to online media reports. According to BBC News online report, Solihull Council said it had granted a large casino premises licence to Genting UK. (Financial Daily)
Formis buys 20.59% of Ho Hup from Extreme System
Information technology services outfit Formis Resources‟s unit yesterday unveiled its plans to diversify into construction and property development by taking up a substantial 20.59% stake in construction firm Ho Hup Construction Co. In a filing with Bursa Malaysia, Formis said its wholly-owned unit Formis Holdings yesterday acquired the stake from Extreme System SB. Formis purchased the 21m shares for a total consideration of RM16.8m in cash or 80 sen per share. The purchase price is to be funded entirely by bank borrowings to be fully paid up by 1 July 2011, Formis added. (Financial Daily)
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