20110224 1850 FCPO EOD Daily Chart Study.

FCPO closed : 3457, changed : -57 points, volume : higher(historical high).
Bollinger band reading : downside biased with possible pullback correction.
MACD Histrogram : getting lower, seller in rules.
Support : 3450, 3420, 3350, 3300 level.
Resistance : 3470, 3500, 3550, 3620 level.
Comment :
Historical high volume FCPO closed recorded loss with ultra higher volume participation ahead of tomorrow export data as market anticipating a weaker export and improved weather lead to higher palm oil production while soy oil price continue to trade weaker after overnight rebound.
Market opened gap up tested higher resistance level and dive deep once recorded down 5%(356 points) followed by seller profit taking activities pushed price up to recovered two third of the losses to closed recorded less significant loss.
Daily chart formed an down doji bar candle with long lower shadow closed below lower Bollinger band level with the reading suggesting a downside biased development with possible temporary pullback correction.
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.

20110224 1828 FKLI EOD Daily Chart Study.

FKLI closed : 1483.5 changed : -31 points,  volume : higher.
Bollinger band reading : downside biased.
MACD Histrogram : revesed lower, seller adding position.
Support : 1480, 1470, 1458, 1445 level.
Resistance : 1485, 1500, 1515 level.
Comment :
Heavy selling pressure FKLI closed recorded severe losses with ultra high lower volume changed hand doing 6 points discount compare to cash market while regional market closed mostly in negative zone.
Daily chart formed a huge down bar candle continue downward movement after market opened gap down tested higher fall severely to closed near the low off the day below lower Bollinger band support level.
Reading wise suggesting a further downside biased movement market development testing lower support level with possible temporary pullback correction.
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.

20110224 1023 Local & Global Economic Related News.

Malaysian: Inflation quickens, adding pressure on Central Bank
Malaysia’s inflation rate rose to the highest level since mid-2009, an increase that may add pressure on the central bank to tighten monetary policy. Consumer prices rose 2.4% in January from a year earlier, according to a report by the Putrajaya, Malaysia-based statistics department. That matches the median in a Bloomberg News survey of 17 economists. Nations from Indonesia to China have boosted interest rates this year, and the International Monetary Fund says the region may need to raise borrowing costs further to limit the risk of overheating. (Bloomberg)

Economic: BNM reserves at RM338b. Bank Negera Malaysia's (BNM) international reserves amounted to RM338b (USD109.6b) as at Feb 14. The reserves position was sufficient to finance 8.1 months of retained imports and was 4.3 times the short-term external debt. (Source: Bernama)

Hong Kong: Targets inflation as Tsang says growth may hit 5%
Hong Kong targeted inflation as the main threat to an economy forecast to grow as much as 5% this year, with Financial Secretary John Tsang pledging to do more to curb property-bubble risks. GDP rose 6.2% in the 4Q from a year earlier, Tsang said. That was more than the 5.5% median estimate of 13 economists surveyed by Bloomberg News. Growth was 6.7% in the 3Q. Rising commodity costs and capital inflows triggered by the strength of Asia’s recovery and monetary easing in developed economies threaten to fuel price gains across the region. (Bloomberg)

China: Consumer confidence down in Q4
A Chinese consumer confidence index fell in the 4Q to the lowest since 2009, indicating that concern about inflation may restrain spending in the world’s fastest-growing major economy. The measure was at 100 compared with 104 in the previous 3 months, Nielson Co and the Chinese statistics bureau’s Economic Monitoring and Analysis Centre said in a statement in Beijing. (StarBiz)

Japan: BoJ upbeat on economy, exports show seasonal dip
Bank of Japan deputy governor Hirohide Yamaguchi said the country’s economy will soon pull out of its torpor, despite a near-stalling of export growth in January, but warned risks from rising commodity prices remained. Annual export growth slowed to its weakest pace in more than a year in January as shipments to China lost steam before the Lunar New Year, but economists said the central bank’s forecast of an export-led recovery remained intact as underlying demand overseas remained strong. (Financial Daily)

EU: Industrial orders unexpectedly rise on capital goods
European industrial orders unexpectedly rose in December 2010 as surging demand for capital goods such as factory machinery helped offset a slump in Germany. Orders in the euro area increased 2.1% from November, when they gained a revised 2.2%, the European Union’s statistics office in Luxembourg said. Economists had forecast a drop of 1%, the median of 16 estimates in a Bloomberg News survey showed. From a year earlier, December orders jumped 19%. (Bloomberg)

US: Existing home sales climb to eight-month high Sales of US previously owned homes unexpectedly climbed in January to the highest level in eight months as investors used all-cash transactions to snap up distressed properties. Purchases increased 2.7% to a USD5.36m annual rate, figures from the National Association of Realtors showed. The share represented by foreclosures and short sales rose to a 12-month high, pushing the median price to the lowest level in almost nine years. (Bloomberg)

World: Economy can survive oil price surge for now, IMF says. The world economy can withstand the surge in oil prices sparked by unrest in the Middle East and North Africa so long as the increase proves short-lived, said the International Monetary Fund's No. 2 official, echoing Deutsche Bank AG and Bank of America Merrill Lynch. Futures for April delivery climbed to within USD 2 of USD 100/bbl in New York and London-traded Brent rose to USD 108.57/bbl, close to the highest since September 2008, as escalating violence in Libya stoked concern supplies from the region will be disrupted. Oil in New York has gained almost 6% since Jan. 24, the day before the first anti-government protests erupted in Egypt. (Source: Bloomberg)

U.K: Posts biggest budget surplus in January since July 2008 on taxes. Revenue exceeded spending by GBP 3.74b (USD 6b), compared with a deficit of GBP 1.27b a year earlier. The surplus including government support for banks was GBP 5.25b. (Source: Bloomberg)

H.K: Inflation accelerated to the fastest pace in 29 months in January. Consumer prices gained 3.6% YoY after rising 3.1% YoY in December, the government said on its website. (Source: Bloomberg)

Vietnam: Raises second interest rate in a week to tame inflation. Vietnam's central bank raised its reverse repurchase rate, the second increase in borrowing costs in less than a week, as Prime Minister Nguyen Tan Dung prepares to order tighter monetary and fiscal policies to tame inflation. The State Bank of Vietnam raised the rate it charges commercial banks in daily open-market operations to 12% from 11% for the seven-day term. Dung will sign a resolution directing the central bank and ministries to curb inflation by tightening policy, said Le Xuan Nghia, an adviser to the premier. (Source: Bloomberg)

U.S: Mortgage demand rose from two-year low last week on falling rates. The Mortgage Bankers Association's index of loan applications increased 13% WoW in the week ended Feb. 18 after dropping the prior week to the lowest point since November 2008. The group's refinancing measure jumped 18% WoW and the purchase gauge rose 5.1% WoW. (Source: Bloomberg)

Japan: Export increased less than expected in January and the nation swung to a trade deficit, as a Lunar New Year holiday in the nation's largest Asian markets disrupted demand. Overseas shipments rose 1.4% YoY in January from December's 12.9% YoY gain, the Finance Ministry said. (Source: Bloomberg)

Taiwan: Industrial production rose for a 17th straight month in January. Output advanced 17.19% YoY after gaining a revised 18.93% YoY in December, the Ministry of Economic Affairs said in Taipei. (Source: Bloomberg)

Singapore: Inflation rate rose to the highest level since December 2008, adding pressure on the central bank to damp price gains by allowing greater currency appreciation. The consumer price index increased 5.5% YoY in January after climbing 4.6% YoY in December. Prices rose 1.6% MoM from December, without adjusting for seasonal factors. (Source: Bloomberg)

Australia: Wages grew at a faster pace in 4Q10 as employers increased hiring in an economy the central bank predicts will accelerate this year. The wage price index, which measures hourly pay rates excluding bonuses, advanced 1% QoQ from 3Q10, when it rose 1.1% QoQ, the statistics bureau said. (Source: Bloomberg)

20110224 1021 Malaysia Corporate Related News.

MRCB-Ekovest: Bags KL river project. Malaysian Resources Corp Bhd (MRCB) and its joint-venture (JV) partner Ekovest Bhd have been appointed as the project delivery partner for the River of Life project. Ekovest Bhd-MRCB JV has received a letter of intent from the government via the KL mayor. (Source: The Star)

Sime Darby: On lookout for land. Sime Darby the world's biggest listed palm oil firm, is on the lookout for more land, in a move sure to fuel the global grab for arable land as food prices remain high. (Source: Business Times)

Auto: Total vehicle sales up 8% in January. Total vehicle sales in January increased 8% to 54,696 units from 50,622 units recorded a year ago, as car makers ramped up production by about 20% to meet the Chinese New Year deleveries. Malaysian Automotive Association (MAA) said sales volume for February is expected to be lower than that of January 2011. (Source: The Edge Daily)

Petra Perdana: Banks on deep-water finds. Petra Perdana Bhd could be a major beneficiary of jobs stemming from Petronas recent deep-water finds at Sarawak's NC3 and Spaoh-1 deep-water wells. Petra Perdana has a mixed fleet of 25 vessels, of which 14 are larger vessels above 9,000bhp which are ideal for deep-water. (Source: The Edge Daily)

PLUS accepts UEM-EPF offer
PLUS has accepted the UEM-EPF takeover offer after an EGM yesterday that was marred by a walkout of minority shareholders. Resolutions for both the RM23bn offer and capital repayment plan were adopted at the conclusion of the meeting. The resolutions were overwhelmingly approved with 99% of the 1.1bn votes present opting for the deal, which will see shareholders paid RM4.60 per share. Only 69% of the 1.6bn total eligible votes were cast with the remainder being absent from proceedings. (The Malaysian Insider)

Tradewinds plans new set of 'jewels'
Tradewinds plans to demolish two of its prized assets in Kuala Lumpur to make way for a "multi-billion-ringgit" mixed commercial development. This means that the Crowne Plaza Mutiara Hotel and Kompleks Antarabangsa, both located on Jalan Sultan Ismail, will make way for a new property project. Chairman Tan Sri Megat Najmuddin Megat Khas said the plan is in the advanced concept stage and could take more than a year to start. (BT)

SP Setia shareholders approve share placement proposal
SP Setia shareholders approved a proposal for the placement of up to 15% of its issued and paid-up share capital. The placement would involve the issuance of up to 152.5m new shares with part of the proceeds to be used for the group's existing development projects like the KL Eco City in Kuala Lumpur, Setia City in Setia Alam, Selangor and the Fulton Lane project in Melbourne, Australia. (Bernama)

Selangor government appoints new KPS CEO
The Selangor state government has named Melewar Industrial Group MD and CEO Suhaimi Kamaralzaman as the new CEO of the state-owned Kumpulan Perangsang Selangor (KPS). It is understood that Suhaimi has officially accepted the offer and he is scheduled to assume duties at KPS in June. (The Malaysian Reserve)

Transmile faces suspension and delisting
Transmile faces suspension and delisting from 3 March and 7 March respectively for failing to submit a regularization plan to the Securities Commission or Bursa Malaysia for approval by 22 Feb. It had until 2 March to submit an appeal to Bursa. (StarBiz)

Legoland Malaysia to open by end-2012
Asia’s first Legoland theme park is on track to open its doors to its first visitors by the fourth quarter of 2012. Construction for the RM720m Legoland Malaysia on 76 acres of land will begin next month while contracts for construction will be awarded by end of this month. About RM200m worth of contracts have already been awarded for earthworks, primary infrastructure, service and administrative buildings, purchase of rights of the theme park and Lego models and consultancy costs. (Financial Daily)

MRCB, Ekovest clinch River of Life project
MRCB together with its joint venture partner Ekovest has clinched the River of Life from project from the government via the Mayor of Kuala Lumpur. MRCB said both firms have received a letter of intent from the government on Tuesday indicating the intention of the government to obtain their services as the project delivery partner. (BT)

20110224 0914 Renewable Energy Related News.

POWER UTILITY BC HYDRO PLANS C$800 MLN DAM UPGRADE
VANCOUVER, Feb 22 (Reuters) - Provincial power utility BC Hydro unveiled plans on Tuesday for an C$800 million ($808 million) upgrade of an 80-year-old hydroelectric dam and generating plant in southern British Columbia.
The utility said it had applied this week to the British Columbia Utilities Commission, which regulates BC Hydro, to modernize the Ruskin Dam and Powerhouse.

ISRAEL'S ZENITHSOLAR IN DEAL FOR CHINA SOLAR PLANTSBY TOVA COHEN
TEL AVIV, Feb 22 (Reuters) - Israel-based ZenithSolar Ltd said it signed an agreement with the Chinese government to provide two combined heat and power solar systems in Gansu province, marking its first project in China.
Under the memorandum of understanding, ZenithSolar will provide the technology for the installation of two 10 megawatt cogeneration plants, CEO Roy Segev told Reuters on Tuesday.

AUSTRALIA GREEN CAR SPENDING SEEN AT $4.4 BLN BY 2020
HONG KONG, Feb 22 (Reuters) - Australia is expected to be a major market for electric vehicles (EVs), with private spending in the sector likely to exceed A$4.3 billion ($4.36 billion) by 2020, a top executive at a market research and consulting firm said.
Electric cars would replace more than 100,000 petrol-driven cars a decade from now, and key beneficiaries would include top Australian power retailers Origin Energy Ltd  and AGL Energy Ltd , said Ezra Beeman, managing director at Sydney-based consulting firm Energeia.

GERMAN POWER CAPACITY TO RISE 2.6 PCT IN WEEK
FRANKFURT, Feb 18 (Reuters) - German power plant availability reported by producers and transmission firms to energy exchange EEX is set to rise 2.6 percent to 64,256 megawatts (MW) in the seven days to Feb. 25, data from the bourse showed on Friday.
The EEX on its website issues transparency data from German generators, grid operators and small plants below 100 MW, as well as live production forecasts on an aggregated basis.

ATS SAYS PRODUCTIVITY HITS FRENCH SOLAR UNIT OUTPUT
OTTAWA, Feb 17 (Reuters) - ATS Automation Tooling Systems Inc  said on Thursday January production at its French solar unit reached only 55 percent of planned output because of low productivity at a plant where the company may cut jobs.
ATS, which makes factory automation systems and solar energy equipment, said it may cut 95 full-time jobs and about 136 temporary jobs at its Photowatt International plant in Bourgoin-Jallieu, France.

BELGIUM, DUTCH INTRADAY POWER MARKET KICKS OFF
AMSTERDAM, Feb 17 (Reuters) - Anglo-Dutch energy exchange APX ENDEX said on Thursday it had launched a cross-border intraday market for trading Dutch and Belgian power in a move to help integrate electricity markets in Europe.
The European Commission aims to integrate power markets through the sharing of cross-border transmission capacity to maximise participants' surpluses, allowing a single price to emerge.

ITALY GSE SEES 2,800 MW ADDED SOLAR CAPACITY IN 2011
MILAN, Feb 17 (Reuters) - Italy energy services agency GSE expects about 2,800 Megawatts of additional solar capacity in Italy in 2011, its chairman Emilio Cremona told Reuters on Thursday.
"In my opinion in 2011 I would expect about 2,800 MW of added solar capacity on top of what we have already declared in previous announcements," he said.

CHINA TOP GRID FIRM TO ADVANCE POWER LINK TO TIBET
BEIJING, Feb 17 (Reuters) - The State Grid Corp of China (SGCC) aims to link the isolated power grid in Tibet to its main networks before the end of this year, The State Grid News, a company newspaper, reported on Thursday.
The latest plan would be one year faster than its earlier plans.

CHINA'S JIANGSU SEES 10 GW SUMMER POWER SHORTAGE-PAPER
BEIJING, Feb 17 (Reuters) - Eastern China's Jiangsu province could face power shortages of more than 10 gigawatts (GW) in peak hours during the summer, or nearly 15 percent of the expected maximum load on its main grid, a local newspaper reported on Thursday.
The monthly power deficit could range from 2 GW to 10 GW, in part due to insufficient power transmission capacity, the Yangtze Evening News reported, citing forecasts made at a government power conference on Wednesday.

BOSNIA EPBIH TO LAUNCH SMALL HYDRO-POWER PLANTS
SARAJEVO, Feb 16 (Reuters) - Bosnia's top power company Elektroprivreda BiH  will launch this year the construction of four small hydro-power plants in southern Bosnia with 43.5 gigawatts-hours annual output, it said on Wednesday.
The four plants are part of a broader project to build 15 small hydro-power plants on the river Neretvica, and will account for 42 percent of the project's total output, EPBiH said in a statement.

20110224 0913 Biofuels Related News.

KINGSMAN: 55 PCT C/S BRAZIL CANE FOR ETHANOL
DUBAI, Feb 22 (Reuters) - A Kingsman SA analyst said 55 percent of the centre/south Brazilian crop in 2011/12 was projected to be used for ethanol production and 45 percent for sugar.
This compared with an estimate of 55.3 percent for ethanol and 44.7 percent for sugar in 2010/11," Patricia Luis-Manso told Reuters on the sidelines of the Feb. 19-22 Kingsman Dubai sugar conference.

U.S. ETHANOL INVESTMENTS SLOW, FACE UNCERTAINTY
PHOENIX, Feb 22 (Reuters) - Investment dollars for new U.S. ethanol plants are coming, but slowly, and uncertainty over U.S. government policy complicates efforts to jump-start broad industry growth, particularly for newer cellulosics, industry experts said this week.
A round of new loan guarantees from the federal government are helpful, but is not enough to substantially boost lender and investor confidence. And moves in recent days by Washington lawmakers to block federal funding of ethanol expansion only adds to investor nervousness.

BRAZIL ETHANOL CONSUMPTION TO FALL IN 2011-DATAGRO
SAO PAULO, Feb 21 (Reuters) - Ethanol consumption in Brazil should fall in the 2011/12 season as high sugar prices buoy prices of the fuel, making it less competitive than gasoline at filling stations, Datagro analysts said on Monday.
Demand for the cane-based fuel has soared since 2003 when automakers launched their first flex-fuel cars which can run on any mixture of gasoline and hydrous ethanol, according to Datagro. They now account for nearly all sales of new cars.

ETHANOL EXECS FEAR U.S. BUDGET CUTS TO HURT GROWTH
PHOENIX, Feb 21 (Reuters) - Budget cuts by Congress and fresh fears about food security are among many obstacles threatening growth of U.S. ethanol, according to industry leaders.
Investments into expanded ethanol production remain stymied by uncertainty about how U.S. tax and energy policy will impact the industry, and access to markets is limited in part by state regulatory barriers to the use of higher level ethanol blends, industry experts said on Monday.

ITALY 2010 BIODIESEL OUTPUT DOWN TO 731,844 T
MILAN, Feb 16 (Reuters) - Biodiesel output in Italy, a major European Union producer, fell 8 percent in 2010 as some firms halted or sharply reduced production while imports jumped 38 percent, data from the industry body and companies showed.
Italian biodiesel makers, who use mostly imported raw materials including palm oil and rapeseed, were hit hard in 2010 by cheap imported fuel, which sometimes costs less than their raw materials, industry experts have said.

20110224 0912 Global Market Related News.

Oil hits 2-1/2 yr high as Libya unrest cuts supply
SINGAPORE, Feb 24 (Reuters) - Oil prices hit a fresh 2-1/2 year peak on concern the bloody unrest that has cut over a quarter of OPEC-member Libya's crude output could spread to other major producers including top exporter Saudi Arabia.
"I see more upside on Brent for the moment with prices likely to hit $120 by the end of March," said Ken Hasegawa, a commodity derivatives manager at Newedge brokerage in Tokyo. 

Gold steady below 7-week high; Libya crisis aids
SINGAPORE, Feb 24(Reuters) - Spot gold prices held steady just below a seven-week high, as violence in Libya continued to buoy safe-haven demand in bullion and high oil prices, triggering inflation fears, also lent support.
"People don't have much confidence that the Libya crisis will be settled any time soon, so a lot of them are betting on gold," said a dealer in Singapore, "Gold will be the king." 

OIL: U.S. oil April crude contract up $1/bbl on Libya supply worries
SINGAPORE, Feb 24 (Reuters) - U.S. crude oil futures rose more than $1 on Thursday, on mounting fears that growing unrest in Libya could spread to other oil producers in the Middle East and North Africa.
Escalating violence in Libya has already disrupted oil production, boosting oil prices as the front-month contract touched $100 a barrel briefly in the previous session, its highest since October 2008.

COMMODITIES: Oil surges on Libya; base metals hit
NEW YORK, Feb 23 (Reuters) - Oil prices surged to 28-month highs on Wednesday as unrest in Libya and the Middle East raised supply concerns, while base metals lost ground on worry that rising crude prices would dent economic growth.
"This is different from what happened in Egypt as there is an actual disruption of supplies and the market does not know what will happen next due to the intransigence of Muammar Gaddafi," said oil analyst Jim Ritterbusch, president at Ritterbusch & Associates in Galena, Illinois.

GLOBAL MARKETS: Oil holds near $100 a barrel; stocks sag
SYDNEY, Feb 24 (Reuters) - Unrest in Libya and the threat of contagion to other oil producers in the region kept U.S. crude near $100 a barrel in Asia on Thursday, fuelling fears that global growth may suffer and keeping stocks under pressure.
"As Japanese stocks have tumbled for the past two sessions (losing 2.6 percent), today's losses may not be   sharp," said Masumi Yamamoto, a market analyst at Daiwa   Securities Capital Markets.

US crude likely up, Cushing stocks eyed
BANGALORE/NEW YORK, Feb 23 (Reuters) - U.S. crude oil inventories rose for the sixth straight time last week, with imports likely having increased, an expanded Reuters poll showed Wednesday.
On average, crude stockpiles were forecast up 1.2 million barrels in the week to Feb. 18, a Reuters poll of 12 analysts showed, ahead of weekly industry and government inventory reports.

US oil soars as high as $100 on Libya unrest
NEW YORK, Feb 23 (Reuters) - U.S. crude jumped to a 28-month high of $100 a barrel on Wednesday, as investors weighed the risk of Middle East unrest spreading from Libya to bigger exporters including Saudi Arabia.
U.S. crude for April delivery  rose 2.8 percent to settle at $98.10 per barrel after soaring as high as $100.
Brent , which has posted the biggest three-day gain since October 2009, rose 5.3 percent to settle at $111.25, its highest close since before the collapse of U.S. investment bank Lehman Brothers in 2008.

Revolt in Libya likely to scar its oil sector
NEW YORK, Feb 23 (Reuters) - Regardless of what comes next in Libya's lethal political standoff, the OPEC country's oil sector is nearly certain to suffer, bringing long-lasting supply disruptions or even permanent damage.
None of several potential outcomes is benign for Libya's oil industry -- the lifeblood of its economy -- or for oil prices. The scenarios run the gamut from all-out civil war and attacks on energy infrastructure to low-level neglect and reservoir damage, as foreign expertise flees the country.

US consumer confidence at 3-year high
NEW YORK, Feb 22 (Reuters) - American consumers are more confident than at any time in the last three years thanks to better prospects for the economy and jobs, even as separate data on Tuesday showed house prices were still falling.
The Conference Board, an industry group, said its index of consumer attitudes rose to 70.4 in February from a revised 64.8 in January.

PRECIOUS-Gold edges above $1,400/oz as Libya tensions simmer
LONDON, Feb 23 (Reuters) - Gold rose above $1,400 an ounce in Europe on Wednesday as simmering tensions in Libya lifted interest in the metal as a haven from risk, but gains were limited by concerns its sharp run higher may have been overdone.
Spot gold  was bid at $1,401.50 an ounce at 0933 GMT, against $1,399.20 late in New York on Tuesday. U.S. gold futures for April delivery  eased 30 cents an ounce to $1,400.80.

FOREX-Euro, sterling rise on rate hike prospects
LONDON, Feb 23 (Reuters) - The euro and sterling rose versus the dollar on Wednesday as comments by European Central Bank officials and Bank of England minutes were seen increasing the chances of euro zone and UK interest rate rises.
Interest rate speculation took centre stage, pushing aside concerns about political tensions in North Africa and the Middle East for now, though analysts said the dollar could see renewed safe-haven demand if unrest in the region spreads further and oil prices continue to spike.

Stocks fall further on oil, inflation concerns
LONDON, Feb 23 (Reuters) - World stocks fell further from a recent 30-month high while the euro rose as unrest in Libya drove oil higher and fanned concerns about inflation that could hamper a global economic recovery.
"There is very little reason for people to be adding to risk at the moment. The Middle East is going to cast a pall over the markets until they can see any proper direction," said Justin Urquhart Stewart, director at Seven Investment Management.

20110224 0911 Soy Oil & Palm Oil Related News.

Soy product futures stage a recovery in unison with soybeans. Soyoil futures led the advances, hitched to the rally in energies, particularly with margins for biodiesel turning profitable, says AgResources' Dan Basse. Crude oil influences soyoil due to its use in making renewable fuels. CBOT May soyoil ended 2% higher at 55.70c/pound and May soymeal rose 1.5% at $356.10/short ton. (Source: CME)

KL Kepong CEO Sees Palm Oil Prices Easing (Source: CME)
Malaysian palm oil producer Kuala Lumpur Kepong Bhd. expects crude palm oil futures to extend a recent downward correction, falling as much as 6% from current levels as output gradually rises in Malaysia and Indonesia, the company's chief executive said. "While palm oil's fundamentals are still good, the market has risen too high," Lee Oi Hian told Dow Jones Newswires. "The rally may be running out of steam." He said prices may ease to between MYR3,300 and MYR3,500 a metric ton in the next few months. Crude palm oil futures on Malaysia's derivatives exchange rose to a 35-month high of MYR3,967/ton earlier this month amid concerns about tight global vegetable oil supply. Lee said the company's output may rise in the fiscal year ending Sept. 30, as some plantations are bearing more fruit and weather conditions are improving.
He didn't provide specific numbers, but said output "will show a single digit rise" from last year. He said the company will carry out new planting on 8,000 hectares of land in the current fiscal year. KLK, Malaysia's third-largest listed plantation company by land bank size, produced 3.18 million tons of oil palm fruit last year.

Slide as risk aversion grows over Libyan unrest
KUALA LUMPUR, Feb 23 (Reuters) - Vegetable oil markets tumbled as spreading Libyan unrest spurred investors to flee agriculture assets to the safe haven plays, although traders said the sell-off was a knee-jerk reaction and prices will recover.  "The palm oil market will have to go up as February is a much shorter month and production will be much lower," said a Malaysian trader with a foreign commodities brokerage.

China changes edible oil import quarantine rules to boost import
BEIJING, Feb 23 (Reuters) - China adjusted the quarantine rules for imported edible oils to increase imports, the General Administration of Quality Supervision, Inspection and Quarantine said on Wednesday.
The country scrapped the quarantine certificate for refined edible oil packed for retail from Jan 1 this year, the administration said in a statement published on its website.

Palm to go into a discount to soyoil as output recovers
KUALA LUMPUR, Feb 23 (Reuters) - Malaysian palm oil will reverse its current premium to competing soyoil and trade at a discount as output recovers in the second half of this year, a leading analyst said on Wednesday.
Palm olein currently trades at a $70 premium to a tonne of Argentine soyoil, triggering fears that demand will slow and weigh on benchmark palm oil futures  that is set to post its worst monthly loss in February in more than a year.

Malaysia's Sime hunts for land as palm price rises
KUALA LUMPUR, Feb 23 (Reuters) - Malaysia's Sime Darby , the world's biggest listed palm oil firm, is on the lookout for more land, its chief executive said on Tuesday, in a move sure to fuel the global grab for arable land as food prices remain high. During the 2007-2008 food price surge, resource companies from Saudi Arabia to South Korea scoured the world for agricultural land to increase supplies and profit from growing food demand. 

Nestle to buy slightly less palm oil in 2011
JAKARTA, Feb 22 (Reuters) - Nestle  will buy slightly less palm oil in 2011 due to changes in its products, and is confident of hitting its year-end target of buying 50 percent of supplies from sustainable producers, the the world's biggest food maker said on Tuesday.
"It's mostly because of the way our receipes are evolving. It is not the result of a strategy," Jose Lopez, chief operating officer, told Reuters in an interview on Tuesday, adding it was also because of changes in demand for the firm's product mix.