20110111 1824 FCPO EOD Daily Chart Study.

FCPO closed : 3703, changed : -27 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : falling, buyer closing position as seller taking exposure.
Support : 3700, 3650, 3620 level.
Resistance : 3720, 3750, 3770 level.
Comment :
FCPO continue to retrace lower recorded loss with higher volume traded as weak demand continue to haunt market triggering buyer to leave as selling testing market.
Daily chart formed a small body down bar candle market opened gap up tested higher traded range bound in the morning session and fall all the way to closed near the low of the day little below middle Bollinger band support level with the reading turned into suggesting side way range bound market development testing support and resistant 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 quick cut loss and profit target.

20110111 1758 FKLI EOD Daily Chart Study.

FKLI closed : 1564.5 changed : + 2 points,  volume : higher.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakening, buyer taking profit and reducing exposure.
Support : 1560, 1550, 1540 level.
Resistance : 1570, 1580, 1590 level.
Comment :
Profit taking FKLI closed recorded small gain with lower volume changed hand doing 2 points discount compare to cash market while regional market ended mixed.
Daily chart formed a up doji bar candle after market opened and tested lower support level and recovered with the reading suggesting a correction range bound upside biased market development testing support and resistant.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110111 1005 Local & Global Economics Related News.

E.U: ECB President says emerging markets face inflation threats. European Central Bank President Jean-Claude Trichet, speaking on behalf of the world's central bankers, said the global economy has recovered better than expected, boosting inflation pressures in emerging markets. "Inflationary threats present some kind of general feature in the emerging world; its something you dont see necessarily in advanced economies," Trichet said. "Its clear that it is extremely important that we all keep control of inflation expectations, and that calls for appropriate decisions." (Source: Bloomberg)

Germany: May soften objections to Euro fund increase. Germany may soften its opposition to expanding the region's EUR 750b (USD 966b) rescue facility as Belgium's political deadlock sent borrowing costs surging and the European Central Bank bought Portuguese bonds. The cost of insuring against default on European sovereign debt climbed to records and European stocks fell amid concern Portugal is next in line for a bailout. Portuguese securities reversed declines after three traders with knowledge of the deals said the ECB purchased the government's bonds. (Source: Bloomberg)

France: Industrial output climbed in November at the fastest pace since January. Output from French factories, mines and utilities increased 2.3% MoM after declining 0.8% MoM in October. (Source: Bloomberg)

China: Reported a less than forecast USD 13.1b trade surplus for December, bolstering the nation's bargaining position ahead of a Jan. 19 meeting where U.S. President Barack Obama may press for more gains in the Yuan. Exports rose 17.9% YoY to USD154.2b and imports climbed 25.6% YoY to USD141.1b, the customs bureau said on its website. (Source: Bloomberg)

Malaysia: November industrial production up 5.1%
Malaysia’s industrial production index (IPI) rose 5.1% y-o-y in November, up from a revised increase of 3.1% in October, underpinned by increases in all indices namely manufacturing, mining and electricity. YTD, the IPI grew 7.8% compared to the same period in 2009. M-o-m, the index decreased 3.7%. Manufacturing output expanded by 6.5% y-o-y while mining and electricity output increased by 1.7% and 4.9% respectively. YTD, manufacturing and electricity output increased 11.3% and 9.4% respectively while mining output decreased 0.2%. (Financial Daily)

South Korea: Producer price inflation at two-year high
South Korea’s producer-price inflation rate accelerated to a two-year high, adding to the case for the central bank to raise borrowing costs again. Producer prices increased 5.3% in December y-o-y, the biggest gain since December 2008, compared with a 4.9% climb in November. Prices advanced 0.9% m-o-m. Consumer-price growth quickened to 3.5%, heading toward the central bank’s 4% ceiling. (Bloomberg)

Australia: Retail sales rise 0.3%
Australian retail sales rebounded in November as spending at department stores and other retailers strengthened in an economy generating jobs. Sales advanced 0.3% after a revised 0.8% drop in October. Spending at department stores climbed 0.8%, and consumers spent 0.8% more at other retailers such as book stores and newsstands. Consumers spent 0.1% less on groceries. (Bloomberg)

EU: French production rises most since January
French industrial output climbed in November at the fastest pace since January, a signal that growth in the euro region’s second-biggest economy may have accelerated in the final quarter of 2010. Output from French factories, mines and utilities increased 2.3% y-o-y after declining 0.8% in October, beating forecast of a 1% gain. Industrial production gained 6% y-o-y. Manufacturing output rose 2.2% m-o-m and 5.1% y-o-y. (Bloomberg)

EU: Greece’s deficit shrinks 36.5%
Greece’s central government budget deficit, which sparked a European debt crisis, contracted by more than a third last year. The gap shrank 36.5% to EUR19.6bn, more than the 33.5% forecast in the government plan. The results also give the government a EUR1.5bn cushion to cover overspending by state-controlled enterprises The austerity measures have deepened the country’s two-year recession and contributed to GDP contracting an estimated 4.2% last year. (Bloomberg)

UK: House prices decline 1.3%
UK house prices fell the most in three months in December and may extend their decline this year as uncertainty about the economy deters homebuyers. Average prices dropped 1.3% m-o-m to GBP162,435. Y-o-y, values fell 3.4%. In the quarter through December, prices fell 0.9% q-o-q. In 2010, values dropped 1.6% after a 1.1% increase in 2009. Mortgage approvals rose to 48,019 in November from 47,315 in October, the first increase in seven months. Still, that’s less than half the level at the peak of the property boom in 2007. (Bloomberg)

E.U: Western European government bonds are riskier than emerging market debt for the first time as investors brace for USD1.1tr of borrowing from euro region nations this year. The Markit iTraxx SovX Western Europe Index of credit default swaps insuring the debt of 15 countries, including Germany, Greece and Portugal, climbed to 7 basis points more than the Markit iTraxx SovX CEEMEA Index linked to Romania, Turkey and Ukraine, according to data provider CMA. The developed nations were 160 basis points more creditworthy than their emerging market peers as recently as February. (Source: Bloomberg)

Germany: Retail sales unexpectedly declined in November. Sales, adjusted for inflation and seasonal swings, dropped 2.4% MoM from October, when they rose 0.1% MoM, the Federal Statistics Office in Wiesbaden said. (Source: Bloomberg)

Germany: Exports increased in November. Exports, adjusted for working days and seasonal changes, rose 0.5% MoM from October, when they dropped 1.3% MoM, the Federal Statistics Office in Wiesbaden said. Imports increased 4.1% MoM from October, when they rose 0.1% MoM. (Source: Bloomberg)

S.Korea: Downgraded their defensive alert against the North based on intelligence that Pyongyang has relaxed the standby status of military units on the west coast, a news report said on Friday. The North Korean units, including artillery bases likely to have been involved in the shelling of a South Korean island on Nov. 23, had been on special standby but now appear to be on routine operations, South Korea's Yonhap news agency said. (Source: The Star)

Indonesia: Says 2011 core inflation may not exceed 5% even as costlier commodities threaten to push consumer-price gains above 6%, the central bank said, signaling it will keep interest rates at a record low. Bank Indonesia will work closely with the government to contain domestic prices and inflation expectations, Perry Warjiyo, director of economic research at the central bank, told reporters in Jakarta. The rupiah's appreciation will help contain price gains at about 6% this year, he said. (Source: Bloomberg) 

20110111 1004 Malaysia Corporate Related News.

SapuraCrest: Gets RM750m loan. SapuraCrest Petroleum Bhd's wholly-owned subsidiary, Aurabayu Sdn Bhd was granted a syndicated Islamic financing facilities of up to RM750m comprising ringgit Malaysia and US dollar denominated tranches from Maybank Investment Bank Bhd. Maybank Investment acted as the mandated lead arranger and bookrunner. (Source: The Star)

Integrax: Perak allows Vale of Brazil to build its jetty in Lumut. Vale International SA has been allowed by the Perak state government to construct its own jetty in Lumut to accommodate its proposed iron ore transshipment project. Vale was originally supposed to use Integrax Bhd's Lekir Bulk Terminal (LBT), but the facility upgrade has been on hold since 2009 due to the feud between two brothers who hold a combined 37% stake in Integrax through Halim Rasip Holdings. (Source: The Star)

Property: Tambun Indah IPO oversubscribed by 14.9x. Property developer Tambun Indah Land Bhd's initial public offering (IPO) of 11.1m shares was oversubscribed by 14.9 times where 10,751 applications for 175.7m shares with a total value of RM123m were received. (Source: The Edge Financial Daily)

Construction: Benalec oversubscribed by 4.9times. Benalec Holdings Bhd, which will be listed on the Main Market of Bursa Malaysia, has received an oversubscription rate of 4.92 times for the 36.5m shares made available for public subscription. (Source: The Edge Financial Daily)

Plantation: Planters appeal to abolish windfall profit levy. Malaysian oil palm planters will appeal collectively to Prime Minister Datuk Seri Najib Tun Razak to abolish the windfall profit levy on crude palm oil (CPO) after their requests were turned down by the Finance Ministry recently. The joint appeal is expected to be made by the Malaysian Palm Oil Association (MPOA), Malaysian Estate Owners' Association (MEOA), East Malaysia Planters' Association (EMPA) and Sarawak Oil Palm Plantation Owners' Association (SOPPOA). (Source: The Star)

Conglo: JCorp's directors may not attend EGMs. Johor Corp (JCorp) directors representing the Johor and Federal governments are unlikely to attend the EGM's of Johor Corp's three public listed companies (Kulim, Damansara Realty, KPJ Healthcare) this month to remove Tan Sri Muhammad Ali Hashim as their respective chairman. (Source: The Star)

MRCB-Ecovest: Poised to bag river clean-up job. A joint venture between Ekovest Bhd and Malaysian Resources Corp Bhd (MRCB) is on the verge of receiving a letter of award from the government for a portion of the Klang Valley river beautification project that is worth RM8b. The Klang River clean-up project is part of a RM15b rehabilitation and development plan for the river, under the ETP. Another company eyeing the project is YTL Corp Bhds Wessex Water Ltd, which bided for the project with I-Bhd. (Source: The Edge Financial Weekly)

MRCB, IJM Land: Reconsider merger plans. Malaysian Resources Corp Bhd (MRCB) and IJM land Bhd could be taking another look at the merger plan. Meanwhile, IJM Land does not rule out the possibility of working with MRCB in a joint venture capacity rather than a merger of the two companies. (Source: The Edge Financial Weekly)

Boustead: In talks to buy army base land for RM8b project. Boustead Holdings Bhd is in talks with the government to buy the 98ha Batu Cantonment army base at Jalan Ipoh, Kuala Lumpur for a mixed commercial and residential properties project worth more than RM8b. The Batu Cantonment army base, which has been there for over 40 years, will be relocated. (Source: Business Times)

Aviation: Inaugural Riau Air Flight to Melaka. The inaugural Boeing 737-500 Riau Air flight from Riau to Melaka International Airport (LTAM) in Batu Berendam is expected to give the airport a boost. Riau Air would begin its thrice-weekly Pekan Baru-Melaka flights next week. Meanwhile, Riau Air is also eyeing air connections between Pekan Baru and Johor Bahru via Senai airport. (Source: Bernama)

Transmile to sell four aircraft for RM208m
More than 3 years after Transmile’s accounting scandal became public, the company is starting to address its debt problem by selling four aircraft for RM208.8m. This is seen as the first step towards paring its outstanding borrowings that total nearly RM530m. It announced that it had entered into a sale and purchase agreement with Federal Express Corp last Friday for the disposal of four MD-11f aircraft at USD17m each (approx RM52.23m). According to Transmile, these aircraft are not generating revenue and have been left idle since April 2008. (Financial Daily)

SAAG surges on RM239.5m rail deal in Melaka
Oil and gas firm SAAG Consolidated (M) saw its share price soar 28.5% amidst news its unit has secured a RM239.5m contract to design and build a 40km train tramway in Melaka. The company announced yesterday to Bursa Malaysia that its unit, OGS Asiapac Ltd, has secured a US$75m (RM239.5m) design, engineering, procurement, construction and commissioning (EPCC) contract from Mrails Tram (Melaka) SB on 23Dec, (Financial Daily)

Sapura Crest, Kencana expected to clinch O&G jobs soon
Sapura Crest Petroleum and Kencana Petroleum are in the running to bag major oil and gas contracts for the development of marginal oil fields, expected to be announced by Prime Minister Datuk Seri Najib Razak at the briefing on the progress of Economic Transformation Programme (ETP) today. (Financial Daily)

Benalec public tranche oversubscribed by 4.9 times while KSSC’s IPO receives warm response
Benelac Holdings, en route to a listing on the Main Market of Bursa Malaysia, has received an oversubscription rate of 4.92x for the 36.5m shares made available for public subscription. On a separate note, K Seng Seng Corporation’s IPO received warm response, with its initial share offer of six million shares for the public being oversubscribed by 14.99x. (Malaysian Reserve)

PFC Engr now major shareholder of APP
A company controlled by Datuk Abu Talib Mohamed, a director for various companies such as Kinsteel, Perwaja Holdings, Mycron Steel and others, has emerged as a major shareholder in APP Industries, after the ceramics pottery's major shareholders agreed to sell most of their stakes yesterday. In a filing to Bursa Malaysia yesterday, PFC Engineering SB, a company 80% owned by Abu Talib, will buy a 16.31% and 19.5% stake (or 35.8% stake in total) from APP group managing director Ow Hang Seng and one of APP's founder Cheah Sun Chuang, respectively, for RM14.2m in total. The deal triggers a conditional takeover offer by PFC Engineering, which will also offer to buy the rest of the APP shares for 45 sen each. Abu Talib, who is also the brother of Tan Sri Abu Sahid Mohamed, a major shareholder of Perwaja Holdings, intends to maintain the listing status of APP. Post-transaction, Ow is expected to have 3.75% stake in the company, while Cheah will own a 1.3% stake. (StarBiz)

Clear road ahead for bid on PLUS Expressways
Jelas Ulung Sb has failed to meet the deadline for placing the RM50m deposit required by PLUS Expressways in its bid to undertake the latter's businesses, effectively leaving only one formal offer that is by UEM Group (UEM) and the Employees Provident Fund (EPF) on the table. Yesterday was the deadline for all offers to comply with several conditions to acquire PLUS' businesses, such as coming up with a refundable RM50m cash deposit and an unconditional written confirmation that the offeror has the financial ability to undertake the transaction. It was also the deadline for any new bid for PLUS to be submitted. Despite yesterday's deadline, sources said MMC Corp remained interested in acquiring PLUS and would refer the matter to the Government for a decision on its bid made last year. (StarBiz)

Proton in talks to assemble vehicles in India
Proton Holdings has not ruled out the possibility that it is in talks with Indian automobile manufacturer Hindustan Motors to assemble its vehicles for the Indian market. “We are in talks with several parties in India. Right now, it's still too early to comment,” group managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir told StarBiz yesterday. He was responding to a report by The Times of India that Proton was close to tying up with Hindustan Motors for a contract manufacturing agreement to assemble its cars for the Indian market. When asked if Hindustan Motors was one of the parties that Proton was in talks with, Syed Zainal said: “I think that can be implied.” Hindustan Motors is known for its Ambassador car that is widely used as a taxi and government limousine. (StarBiz)

Perak allows Vale of Brazil to build jetty in Lumut
Vale International SA, whose transhipment project here has become the subject of a feud between two brothers who are also major shareholders of Integrax Bhd, has received the green light to build its own jetty. The Perak government has agreed to allow Vale to construct its own jetty in Lumut to accommodate its proposed iron ore transhipment project. (StarBiz)

KPS gets offer from Selangor government for its water assets
Kumpulan Perangsang Selangor (KPS) has received the conditional offer by Menteri Besar Selangor Inc (MBI) to acquire all the voting shares in Konsortium Abass SB (Abass) and Syarikat Pengeluar Air Sungai Selangor SB (Splash) for RM9.39 per share and RM5.95 per share. Abass is 100%-owned by Titian Modal SB, which in turn is 55%-owned by KPS, while Splash is 30%-owned by KPS, with the remainder owned by Gamuda (40%) and TSWA (30%). (Financial Daily)

20110111 0930 Breaking News.

China's Biggest Lenders Said to Expect About 14% Loan Growth (Source: Bloomberg)
China’s four biggest banks may need to limit loan growth to about 14 percent this year under a new system created by the central bank for managing credit expansion, three people with knowledge of the matter said.

China Currency Reserves Rise to Record $2.85 Trillion (Source: Bloomberg)
China’s foreign-exchange reserves climbed 18.7 percent to a world-record $2.85 trillion at the end of 2010 from a year earlier and domestic lending exceeded the government’s full-year target.

Oil Pares Gains on Speculation U.S. Has Adequate Supply After Pipe Outage (Source: Bloomberg)
Oil gave up earlier gains to trade near $89 a barrel on speculation the closure of an Alaskan crude pipeline will be short-lived and the U.S. has sufficient stockpiles to make up for lost supply.

US : Treasury Two-Year Yields at Month Low on Prospects Fed to Hold on Rates (Source: Bloomberg)
Treasury two-year yields were at the lowest level in a month after Federal Reserve Bank of Atlanta President Dennis Lockhart said the economy faces “headwinds” that will curb growth in 2011.

Asia Exports Cooling Damps Commodity Shipping Outlook (Source: Bloomberg)
Asian exports that helped power the world recovery last year are poised to grow more slowly as the region’s manufacturing rebound eases and U.S. unemployment restrains consumption after a post-recession spending spree.

Three Top Forecasters Favor Dollar as Wells Fargo Sees 5% Gain Versus Euro(Source: Bloomberg)
The world’s most accurate foreign- exchange forecasters say the dollar will be the best currency to own this year as the Federal Reserve’s bond purchases bolster the U.S. economy instead of debasing America’s legal tender.

Portuguese Bond Buyers Set to Demand `Unsustainable Yields': Euro Credit (Source: Bloomberg)
Portuguese yields may be rising to levels that force the nation to follow Greece and Ireland in requesting a bailout from the European Union and the International Monetary Fund to avert default.

Japanese Stocks Fall for First Time in Three Days on Europe Debt Concern (Source: Bloomberg)
Japan’s benchmark stock indexes fell for the first time in three days as concern increased that Europe’s government-debt crisis will worsen.

20110111 0848 Global Market Related News.

China power imports from Russia to rise 22 pct-report
BEIJING, Jan 11 (Reuters) - China will likely import 1.1993 billion kilowatt hours of electricity from Russia this year, up 22 percent from the 980 million kwh in 2010, the China Electric Power News reported on Tuesday.
The flows are a minor portion of China's estimated power consumption of more than 4 trillion kwh last year.

U.S. corn, soy extend gains; Argentine weather supports
SINGAPORE, Jan 11 (Reuters) - U.S. corn and soybean futures edged higher, extending gains as concerns over dry weather hurting crops in Argentina continued to support the market.
"It is follow through strength in the corn and soybean market after yesterday's gains as investors are talking about dry weather in Argentina which could hit crop production,"said Ker Chung Yang, an analyst at Phillip Futures in Singapore.

Gold up on euro zone debt fears, premiums at 2-yr high
SINGAPORE, Jan 11 (Reuters) - Gold inched up on persistent worries about indebted euro zone countries, while purchases from investors and jewellers pushed up premiums for
gold bars to their highest in two years.
"There's a huge demand from China. Refineries just opened and there's not much stock around, so it's a bit tight," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

Euro rises on Japan euro bond plan; stocks mixed
SINGAPORE, Jan 11 (Reuters) - The euro jumped briefly after Japan said it would buy euro bonds to boost  confidence in the European Financial Stability Facility amid  fears that Portugal may become the next euro zone member to  seek a bailout.
"We see a further escalation in the European debt crisis,  and a substantially weaker euro," said Stephen Jen, managing  director of macroeconomics and currencies at BlueGold Capital  Management LLP in London, on Monday.

OIL: Oil extends gains above $89, Alaska pipeline remains shut
SINGAPORE, Jan 11 (Reuters) - U.S. crude prices climbed  further above $89 on Tuesday as a key Alaskan oil pipeline  remained shut, cutting total crude output by nearly 12 percent  in the world's largest oil user.
The Trans Alaska Pipeline is on track to reopen later  this week, sources familiar with the situation said on Monday,  as the oil artery remained shut for a third day after a leak  forced producers to cut Prudhoe Bay output from 630,000  barrels per day to a trickle.

COMMODITIES: Oil, grains recover some losses; copper down
NEW YORK, Jan 10 (Reuters) - Oil and agricultural markets jumped on Monday, recovering some of last week's sharp losses, as supply-demand issues dominated trading due to a pipeline shutdown and weather concerns.
"The stronger dollar is part of it," Michael Widmer, commodities analyst at Bank of America-Merrill Lynch in London, said, explaining the mixed performance.

GLOBAL MARETS: Euro zone debt fears dent stocks; euro recovers
NEW YORK, Jan 10 (Reuters) - World stocks fell on Monday on fears Portugal may be the next euro-zone member forced to seek a bailout, and the euro was seen remaining under pressure even as it managed to recover after hitting a four-month low against the dollar.
"We see a further escalation in the European debt crisis, and a substantially weaker euro," said Stephen Jen, managing director of macroeconomics and currencies at BlueGold Capital Management LLP in London.

Alyeska working to restart oil pipeline this week
ANCHORAGE/HOUSTON, Jan 10 (Reuters) - The Trans Alaska Pipeline is planning to reopen later this week, officials said on Monday after a leak forced producers to shut in 12 percent of U.S. oil output for a third day.
The plan under consideration is to build a bypass line at the affected area, then use that to restart the system, which was shut after operator Alyeska Pipeline Service Co discovered the leak in the basement of a pump station booster at the start of the pipeline in Prudhoe Bay early Saturday.

Alaska pipe restart could be fast, but risks remain
NEW YORK, Jan 10 (Reuters) - The shutdown of Alaska's main oil pipeline poses only a minor threat to U.S. crude supplies, but any snag delaying its restart could send West Coast refiners scrambling for substitute crude and drive up prices.
The 800-mile (1,280 km) Trans Alaska Pipeline System (TAPS), which carries over 600,000 barrels per day (bpd) or 12 percent of U.S. oil output, was shut on Saturday after a 10 barrel leak was discovered in a pump station.

Commodity costs pose risks to German trade-BGA
BERLIN, Jan 7 (Reuters) - Rising prices for raw materials will be the main challenge for German trade in 2011 and will prompt imports to rise faster than exports, the head of the country's main trading association (BGA) said on Friday.
BGA President Anton Boerner said he expected imports to jump slightly more than 10 percent, while exports would rise at their long-term average of 7 percent this year.

China's trade surplus dips, easing yuan pressure
BEIJING, Jan 10 (Reuters) - China's trade surplus narrowed in 2010 for the second straight year, data showed on Monday, giving Beijing grounds to rebuff U.S. pressure for faster currency appreciation ahead of President Hu Jintao's visit to Washington next week.
The Chinese government will point to the numbers and, especially, heady import growth as evidence of steady progress toward reform of its economy that is giving the world a lift.

China car sales growth set to slow after record 2010
BEIJING, Jan 10 (Reuters) - Auto sales in China are set to cool  in 2011 after surging by a third to a record high in 2010 as rising fuel  prices, the removal of subsidies and tighter rules on new car registrations  temper demand in the world's largest car market.
In December alone, automakers in the country shipped 1.3 million sedans,  sport utility vehicles and multi-purpose vehicles to dealers, but they still  couldn't keep up with demand.

US jobs growth disappoints, but jobless rate falls
WASHINGTON, Jan 7 (Reuters) - U.S. employers hired fewer workers than expected in December and a surprisingly large number of people gave up searching for work, tempering the positive news of a big drop in the unemployment rate.
The disappointing jobs growth figure reported by the Labor Department on Friday suggested the Federal Reserve would likely stay the course with its effort to support the world's biggest economy with the purchase of $600 billion in government bonds.

China Dec iron ore imports at 58 mln T, up 1.4 pct
SHANGHAI, Jan 10 (Reuters) - Restocking pushed Chinese imports of iron ore to a nine-month high of 58.08 million tonnes in December, up 1.2 percent compared with November, customs data showed on Monday.
However, total imports for 2010 declined 1.4 percent year-on-year to 620 million tonnes, in line with predictions made by the China Iron & Steel Association (CISA).

Germany asks China to rethink rare earths access
BERLIN, Jan 7 (Reuters) - German Economy Minister Rainer Bruederle has asked Chinese Vice Premier Li Keqiang to reconsider planned restrictions on supplying rare earths, the minister's spokeswoman said on Friday.
Beatrix Brodkorb told a news briefing that the raw materials -- around 97 percent of which are produced by China -- were a topic in talks during Li's three-day visit to Germany.

Indonesia's Dec tin exports fall 9.2 pct yr/yr
JAKARTA, Jan 10 (Reuters) - Indonesia's refined tin  exports fell 9.2 percent in December 2010 from the same month  in 2009 while the full-year exports in 2010 fell nearly 7  percent as an unusually long rainy season curbed mining, trade  ministry data showed on Monday.
Heavy rains and floods caused by the La Nina weather   anomaly hit tin miners in Indonesia, squeezing supply from the  world's top exporter and pushing the LME price  to a  record high of  $27,500 a tonne in early November.

PRECIOUS-Gold holds near $1,370/oz as euro zone fears support
LONDON, Jan 10 (Reuters) - Gold held near $1,370 an ounce in Europe on Monday as the return of concerns over euro zone sovereign debt as pressure grew on Portugal to seek financial aid helped offset pressure from a rising dollar.
Spot gold  was bid at $1,368.55 an ounce at 1030 GMT, against $1,368.80 late in New York on Friday. U.S. gold futures for February delivery  fell $1.30 an ounce to $1,367.60.Prices posted their biggest one-week fall since May 2010 last week after a run of ter-than-expected U.S. data lifted expectations monetary policy could tighten sooner rather than later. However, the return of concerns over the euro zone has tempered that dip.

FOREX-Euro slips as sovereign funding risks intensify
LONDON, Jan 10 (Reuters) - The euro fell to a four-month low against the dollar on Monday as worries about Europe's debt crisis mounted, after a source said Portugal was under growing pressure to accept EU/IMF aid.
A senior euro zone source told Reuters on Sunday pressure was growing on Portugal from Germany and France to seek financial help from the European Union and International Monetary Fund to prevent the debt crisis spreading.

US corn prices rise more than 1 pct ahead of USDA report
SYDNEY, Jan 10 (Reuters) - - U.S corn futures rose more  than 1 percent ahead of a U.S. Department of  Agriculture (USDA) report due on Wednesday, which is expected  to show downward revisions in U.S. stock piles and lower  global production estimates.
"The main themes this week are obviously going to centre  around the USDA report and also index fund rebalancing," said  Luke Mathews, an agricultural strategist at Commonwealth Bank  of Australia.

Euro stuck at 4-month low vs dollar; stocks flat
HONG KONG, Jan 10 (Reuters) - Mounting fears over  sovereign debt in the euro zone kept the euro tethered to  four-month lows against the dollar with investors  nervous ahead of a flurry of bond sales from the region's  weaker states.
"Clearly the sovereign debt issue is still there and the  market is quite happy to just sell euros," a trader at a U.S.  investment bank said.

20110111 0847 Soy Oil & Palm Oil Related News.

Soy product futures bounced in unison with soybean futures, underpinned by ongoing fears of reduced Argentina production. Argentina is the world's leading exporter of soy products, and any cut in soybean availability for crushing there could shift some demand to U.S. shores, analysts said. CBOT March soyoil ended 0.31c or 0.5% higher at 57.13 cents per pound, and March soymeal traded $7.90 or 2.2% higher at $370.60 a short ton. (Source: CME)

Brazil's Advance Soy Sales Reach 42% Of 2010-11 Crop (Source: CME)
Brazilian farmers have sold 42% of their 2010-11 soy crop compared with 24% one year ago, consultancy Celeres said. The figure is a rise from 40% one week ago, according to the Uberlandia, Brazil-based consultancy. Brazil growers are selling more of their crop in advance this year though the planting of the 2010-11 crop was done at the same time as the year-earlier seeding, according to Celeres in its weekly report released on Monday. The estimates released today are for the period ended Jan. 7. Farmers are selling more in advance this year "basically because of the good prices," Leonardo Menezes, an analyst for Celeres, told Dow Jones Newswires by telephone from Uberlandia. The soy farmers reduce their risk by selling more of their crop in advance, he said. Soy prices paid this past Friday were 1.2% higher than those paid 30 days ago, though the quotations fell last week.

Palm oil falls on small decline in Malaysian stocks
KUALA LUMPUR, Jan 10 (Reuters) - Palm oil fell as a smaller-than-expected decline in stocks gave traders an  excuse to book profits although concerns over global vegetable  oil supplies limited losses.
"Some traders are extending long liquidation moves from  last week thanks to the Malaysian Palm Oil Board data, but  exports show some sign of starting to recover," said a trader  with a foreign commodities brokerage.

China 2010 soybean imports record 54.8m T
BEIJING, Jan 10 (Reuters) - China's soybean imports in 2010 totalled a record 54.8 million tonnes, up 28.8 percent from the same period last year, the General Administration of Customs said on Monday.
In December alone, the country imported 5.43 million tonnes of the crop, down 0.9 percent on the month but up 14 percent on the year.

India's vegoil buy up on Indonesian palm export tax hike
NEW DELHI, Jan 10 (Reuters) - India's vegetable  oil imports in December rose 8.3 percent from November as  buyers stepped up purchases expecting a higher export tax by  the world's top palm oil producer Indonesia, a Reuters survey  showed.
Late last month, Indonesia increased the tax on crude palm  oil to 20 percent for January, up from 15 percent in December. 

US soy stocks seen tighter for 5th straight month
CHICAGO, Jan 7 (Reuters) - Strong Chinese export demand for U.S. soybeans prompted the U.S. Department of Agriculture to trim its forecast of U.S. soybean ending stocks in each of its last four monthly reports, and that trend should continue with the next edition due out Jan. 12, analysts said.
Even though the pace of sales to China has slowed in recent weeks, many analysts believe that USDA's most recent estimate of U.S. soybean exports, at 1.59 billion bushels, is too low.

USDA seen cutting South America crop outlook
CHICAGO, Jan 7 (Reuters) - Analysts expect the U.S. Department of Agriculture (USDA) to trim its outlook for South America's corn and soy production, but offered a wide range of estimates for how deep the cuts will be.
USDA will release updated world crop production data on Wednesday at 7:30 a.m. CST (1330 GMT) in addition to fresh U.S. production numbers, ending stocks data and U.S. winter wheat seedings.

U.S. corn stocks seen at 15-year low
CHICAGO, Jan 7 (Reuters) - U.S. corn stocks are expected to slump to the lowest level in 15 years this year due to strong demand, possibly stoking global food prices which hit a record high last month, a Reuters Poll of analysts showed.
Analysts also said harsh weather cut corn output to 12.502 billion bushels from the previous year's record 13.110 billion and below the U.S. Department of Agriculture's (USDA) forecast in November for 12.540 billion bushels.