Friday, July 1, 2011
20110701 1838 FCPO EOD Daily Chart Study.
FCPO closed : 3035, changed : -37 points, volume : higher.
Bollinger band reading : downside biased.
MACD Histrogram : recovering, seller reducing exposure.
Support : 3020, 2970, 2930, 2900 level.
Resistance : 3050, 3070, 3100, 3150 level.
Comment :
FCPO closed recorded loss with higher volume transacted while overnight soy oil closed lower and currently trading little higher.
Overnight USDA report showing higher than estimates acreage and stocks resulted most grains related commodities to move south including soy oil.
Daily chart formed a down doji bar candle with long upper shadow closed nearer to lower Bollinger band level after market opened gap down, recover higher tested near support turned resistance level followed by late afternoon sell down and closed near the low of the day.
Chart reading resume calling a downside biased market development after recent correction possibly testing lower support level but recovering MACD histrogram must be monitor closely.
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.
20110701 1741 FKLI EOD Daily Chart Study.
Bollinger band reading : upside biased with possible pullback correction.
MACD Histrogram : rising, buyer patrolling.
Support : 1580, 1565, 1550, 1540 level.
Resistance : 1590, 1600, 1610, 1620 level.
Comment :
FKLI closed recorded gain with slightly better but relatively low volume transacted doing 2 points premium compare to cash market that closed higher while Asia and European market closed and trading mostly higher with overnight U.S. market closed recorded gain.
Market sentiment continue to stay positive as fears of an imminent default by Greece receded plus improved U.S. factory activities data and lower jobless claim.
Daily chart formed a small body down doji bar candle with lower shadow positioned above upper Bollinger band after market opened higher, jumped downward and traded range bound before last 1/2 hour pushed to closed back up to near opening price.
Chart reading still calling for 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.
20110701 1613 Global Market & Commodities Related News.
Equities edge higher, take China PMI in stride
SINGAPORE, July 1 (Reuters) - Asian equities edged higher on Friday, lifted by receding fears of a default by Greece and encouraging data from the U.S. overnight, while the euro lost some steam after rallying to a three-week high the previous day.
"Positive global economic data including from the United States and progress in Greece on its debt problems are stoking appetite for stocks today," said Lee Sun-yeb, a market analyst at Shinhan Investment Corp.
U.S. corn, wheat continue plunge on higher stocks
SYDNEY, July 1 (Reuters) - U.S. corn and wheat futures continued to tumble on Friday after a U.S. government report pointed to much higher-than-expected corn supplies from the world's largest exporter of the grain.
"In our view, there remains a lot of confusion over final plantings due to the widespread flooding this season, which significantly delayed plantings and created a lot of uncertainty around the survey period," the bank said in a market report.
Indonesia sees higher rice output, surplus in 2011
JAKARTA, July 1 (Reuters) - Indonesia sees higher unmilled rice output in 2011 and a bigger surplus of the staple food as it expands production areas, government officials said on Friday.
Despite the improving outlook, analysts still see Southeast Asia's largest economy entering the rice import market again this year, as it may look to boost stockpiles to keep inflation at bay.
Rubber demand forecast at 25.7 mln T in 2011-IRSG
SINGAPORE, July 1 (Reuters) - Global demand for rubber, both natural and synthetic, is forecast to rise to 25.7 million tonnes in 2011, down slightly from an earlier estimate of 26.1 million tonnes in March, but still higher last's year's consumption, the IRSG said on Friday.
Global rubber consumption reached 24.6 million tonnes in 2010, 15.3 percent higher than in 2009, reflecting a strong recovery in the demand for vehicles and tyres, the International Rubber Study Group said in a statement.
Rains delay Argentina 2011/12 wheat sowing-exchange
BUENOS AIRES, June 30 (Reuters) - Wheat planting work in Argentina's farming belt was sluggish last week because of constant rains that also slowed down the soy and corn harvests, the Buenos Aires Grains Exchange said on Thursday.
Argentina is a leading wheat exporter and sends most of its output to neighboring Brazil. The exchange has estimated that farmers will seed 4.95 million hectares of 2011/12 wheat while the government expects 4.7 million hectares.
EU facing sharply lower rapeseed crop
HAMBURG, June 30 (Reuters) - The European Union is heading for a major fall in its 2011 rapeseed crop, creating a large supply deficit for its most important oilseed in the coming year.
"In Germany, France and Poland the rapeseed crop has suffered badly from the drought this spring," one analyst said. "It is increasingly clear that rain was not enough to save the harvest."
US Grain Exports-Corn sales hit 6-wk high on price drop
CHICAGO, June 30 (Reuters) - U.S. corn export sales jumped 76 percent last week as sharply lower prices attracted demand from both regular importers and non-routine buyers, analysts said after a U.S. Agriculture Department's weekly export sales report on Thursday.
Net corn export sales in the week ended June 23 totaled 934,400 tonnes, a six-week high that included 691,700 tonnes for shipment by the end of the current marketing year on Aug. 31, USDA data showed.
Ivorian cocoa prices mixed, quality lower -farmers
ABIDJAN, June 30 (Reuters) - Cocoa farmgate prices in Ivory Coast were mixed last week, falling in some growing regions because of worsening quality following heavy rains but up slightly in others on grinder demand, farmers said on Thursday.
In the western region of Soubre at the heart of the cocoa belt, Coffee and Cocoa Bourse (BCC) data was not available, but farmers said the price was 700 CFA francs ($1.54) per kg across the board, compared with 650-700 CFA francs per kg the previous week.
Oil slips as China manufacturing slows, IEA sales eyed
SINGAPORE, July 1 (Reuters) - Brent and U.S. oil fell on Friday after manufacturing in China hit a 28-month low, raising concerns that fuel demand at the world's second largest oil importer may slow with the market also watching the progress of reserve oil stocks sales by IEA member nations.
"The data is just showing a recurring theme in China. Manufacturing continues to slow but it is still growing above the 50 threshold," CMC Markets analyst Ben Le Brun said.
OPEC June output rises, yet to offset Libya
LONDON, June 30 (Reuters) - OPEC oil output is expected to remain lower in June than before the conflict in Libya largely shut down its oil industry, despite extra supply from Saudi Arabia and other Gulf members, a Reuters survey found on Thursday.
Supply from all 12 members of the Organization of the Petroleum Exporting Countries is expected to average 29.45 million barrels per day (bpd) this month, up from a revised 29.1 million bpd in May, the survey of The extra supply from the Gulf OPEC members will be welcomed by consumer nations concerned about the impact of oil prices at well above $100 a barrel on economic growth and inflation. oil companies, OPEC officials and analysts found.
LME Copper falls on lower-than-expected China PMI
SHANGHAI, July 1 (Reuters) - LME copper fell on Friday after data showed that China's factory activity in June slowed down more than expected, ushering in renewed speculation over whether the country's efforts to slow growth to tame inflation will end in a soft or hard landing.
"The lower-than-expected China PMI is definitely one of the factors that has caused some players to pare back bullish bets on copper especially after the huge rally over the past three days," said Phillip Futures analyst Ong Yiling.
Gold flat; Greek vote cuts safe-haven interest
SINGAPORE, July 1 (Reuters) - Spot gold held steady on Friday, set to cap a week marked by a narrow trading range as Greece's approval of austerity measures diminished safe-haven demand for bullion in the short term.
"The seeming resolution of the Greece crisis has probably hurt gold, but I think there's enough interest from the Chinese and central banks to sustain it at around $1,500 for now," said David Thurtell, an analyst at Citigroup.
SINGAPORE, July 1 (Reuters) - Asian equities edged higher on Friday, lifted by receding fears of a default by Greece and encouraging data from the U.S. overnight, while the euro lost some steam after rallying to a three-week high the previous day.
"Positive global economic data including from the United States and progress in Greece on its debt problems are stoking appetite for stocks today," said Lee Sun-yeb, a market analyst at Shinhan Investment Corp.
U.S. corn, wheat continue plunge on higher stocks
SYDNEY, July 1 (Reuters) - U.S. corn and wheat futures continued to tumble on Friday after a U.S. government report pointed to much higher-than-expected corn supplies from the world's largest exporter of the grain.
"In our view, there remains a lot of confusion over final plantings due to the widespread flooding this season, which significantly delayed plantings and created a lot of uncertainty around the survey period," the bank said in a market report.
Indonesia sees higher rice output, surplus in 2011
JAKARTA, July 1 (Reuters) - Indonesia sees higher unmilled rice output in 2011 and a bigger surplus of the staple food as it expands production areas, government officials said on Friday.
Despite the improving outlook, analysts still see Southeast Asia's largest economy entering the rice import market again this year, as it may look to boost stockpiles to keep inflation at bay.
Rubber demand forecast at 25.7 mln T in 2011-IRSG
SINGAPORE, July 1 (Reuters) - Global demand for rubber, both natural and synthetic, is forecast to rise to 25.7 million tonnes in 2011, down slightly from an earlier estimate of 26.1 million tonnes in March, but still higher last's year's consumption, the IRSG said on Friday.
Global rubber consumption reached 24.6 million tonnes in 2010, 15.3 percent higher than in 2009, reflecting a strong recovery in the demand for vehicles and tyres, the International Rubber Study Group said in a statement.
Rains delay Argentina 2011/12 wheat sowing-exchange
BUENOS AIRES, June 30 (Reuters) - Wheat planting work in Argentina's farming belt was sluggish last week because of constant rains that also slowed down the soy and corn harvests, the Buenos Aires Grains Exchange said on Thursday.
Argentina is a leading wheat exporter and sends most of its output to neighboring Brazil. The exchange has estimated that farmers will seed 4.95 million hectares of 2011/12 wheat while the government expects 4.7 million hectares.
EU facing sharply lower rapeseed crop
HAMBURG, June 30 (Reuters) - The European Union is heading for a major fall in its 2011 rapeseed crop, creating a large supply deficit for its most important oilseed in the coming year.
"In Germany, France and Poland the rapeseed crop has suffered badly from the drought this spring," one analyst said. "It is increasingly clear that rain was not enough to save the harvest."
US Grain Exports-Corn sales hit 6-wk high on price drop
CHICAGO, June 30 (Reuters) - U.S. corn export sales jumped 76 percent last week as sharply lower prices attracted demand from both regular importers and non-routine buyers, analysts said after a U.S. Agriculture Department's weekly export sales report on Thursday.
Net corn export sales in the week ended June 23 totaled 934,400 tonnes, a six-week high that included 691,700 tonnes for shipment by the end of the current marketing year on Aug. 31, USDA data showed.
Ivorian cocoa prices mixed, quality lower -farmers
ABIDJAN, June 30 (Reuters) - Cocoa farmgate prices in Ivory Coast were mixed last week, falling in some growing regions because of worsening quality following heavy rains but up slightly in others on grinder demand, farmers said on Thursday.
In the western region of Soubre at the heart of the cocoa belt, Coffee and Cocoa Bourse (BCC) data was not available, but farmers said the price was 700 CFA francs ($1.54) per kg across the board, compared with 650-700 CFA francs per kg the previous week.
Oil slips as China manufacturing slows, IEA sales eyed
SINGAPORE, July 1 (Reuters) - Brent and U.S. oil fell on Friday after manufacturing in China hit a 28-month low, raising concerns that fuel demand at the world's second largest oil importer may slow with the market also watching the progress of reserve oil stocks sales by IEA member nations.
"The data is just showing a recurring theme in China. Manufacturing continues to slow but it is still growing above the 50 threshold," CMC Markets analyst Ben Le Brun said.
OPEC June output rises, yet to offset Libya
LONDON, June 30 (Reuters) - OPEC oil output is expected to remain lower in June than before the conflict in Libya largely shut down its oil industry, despite extra supply from Saudi Arabia and other Gulf members, a Reuters survey found on Thursday.
Supply from all 12 members of the Organization of the Petroleum Exporting Countries is expected to average 29.45 million barrels per day (bpd) this month, up from a revised 29.1 million bpd in May, the survey of The extra supply from the Gulf OPEC members will be welcomed by consumer nations concerned about the impact of oil prices at well above $100 a barrel on economic growth and inflation. oil companies, OPEC officials and analysts found.
LME Copper falls on lower-than-expected China PMI
SHANGHAI, July 1 (Reuters) - LME copper fell on Friday after data showed that China's factory activity in June slowed down more than expected, ushering in renewed speculation over whether the country's efforts to slow growth to tame inflation will end in a soft or hard landing.
"The lower-than-expected China PMI is definitely one of the factors that has caused some players to pare back bullish bets on copper especially after the huge rally over the past three days," said Phillip Futures analyst Ong Yiling.
Gold flat; Greek vote cuts safe-haven interest
SINGAPORE, July 1 (Reuters) - Spot gold held steady on Friday, set to cap a week marked by a narrow trading range as Greece's approval of austerity measures diminished safe-haven demand for bullion in the short term.
"The seeming resolution of the Greece crisis has probably hurt gold, but I think there's enough interest from the Chinese and central banks to sustain it at around $1,500 for now," said David Thurtell, an analyst at Citigroup.
20110701 1245 Global Market & Commodities Related News.
GLOBAL MARKETS: Asian equities edge higher on Greece
SINGAPORE, July 1 (Reuters) - Asian equities edged higher on Friday, getting a lift as fears of an imminent default by Greece receded, while the euro lost some steam after rallying to a three-week high the previous day.
Data on Thursday showing that factory activity in the U.S. Midwest accelerated in June also helped lift equities, with Japan's benchmark Nikkei average rising 0.6 percent, and South Korean shares climbing 1 percent.
OIL: Brent posts biggest quarterly drop in a year
NEW YORK, June 30 (Reuters) - Brent crude futures finished slightly higher in seesaw trading on Thursday, with investors concerned about violence in Greece and uncertainty surrounding the IEA's emergency oil release plan.
"With U.S. trade winding down for the end of the quarter and the July 4th holiday coming up, we may be seeing some pause in frantic activity, with traders less willing to open new positions," analyst Tim Evans of Citi Futures Perspective said.
NATURAL GAS: Natural gas ends up on EIAs, down sharply in June
NEW YORK, June 30 (Reuters) - Front-month U.S. natural gas futures ended higher on Thursday, but in June suffered their biggest monthly loss since October, as record high production continued to weigh on sentiment despite decent demand.
"We were up today in response to the lower than expected storage number, and we could see some short covering tomorrow ahead of the long holiday weekend. It's going to be very hot," a Pennsylvania trader said, referring to the U.S. Independence Day holiday on Monday.
EURO COAL: Calm but braced for more prompt South African
LONDON, June 30 (Reuters) - Prompt physical coal values were little changed on Thursday after a day of quiet trading.
Few utilities in Europe need fresh coal despite increased coal burn and few Indian or Chinese enquiries were reported.
However, increased availability of prompt South African coal for July and August is expected to put more downward pressure on prices.
COMMODITIES: Biggest quarterly loss since '08; grains slide
NEW YORK, June 30 (Reuters) - Commodities posted the largest quarterly loss since the 2008 financial crisis, and ended June on the defensive after a plunge in grain prices on Thursday.
"It's a bit like automakers who offer incentives to buy. People get hooked on them, and before one program ends, they're thinking about when the next one will come along," said Gregory Whiteley, portfolio manager at DoubleLine Capital, a Los Angeles-based fund with some $12 billion in assets.
Govt expects to sell all 30 mln barrels SPR oil-US official
WASHINGTON, June 30 (Reuters) - The U.S. government expects to sell all 30 million barrels of oil it offered in an auction this week from the Strategic Petroleum Reserve and is prepared to take more action to ensure oil supplies are adequate to meet demand, an administration official told Reuters on Thursday.
"The oversubscription of the SPR auction indicates both that supply disruption is a factor and that we will be able to place all 30 million barrels into the market," the official said. "We will continue to monitor the adequacy of oil supply and are prepared to act further if necessary."
OPEC June output rises, yet to offset Libya
LONDON, June 30 (Reuters) - OPEC oil output is expected to remain lower in June than before the conflict in Libya largely shut down its oil industry, despite extra supply from Saudi Arabia and other Gulf members, a Reuters survey found on Thursday.
Supply from all 12 members of the Organization of the Petroleum Exporting Countries is expected to average 29.45 million barrels per day (bpd) this month, up from a revised 29.1 million bpd in May, the survey of
OPEC exports to fall in 4 weeks to July 16 -analyst
Seaborne oil exports from OPEC, excluding Angola and Ecuador, will fall by 160,000 barrels in the four weeks to July 16, an analyst who estimates future shipments forecast on Thursday.
Exports will fall to 22.70 million barrels per day (bpd) on average from 22.86 million bpd in the four weeks to June 18, UK consultancy Oil Movements said in its latest weekly estimate.
Oil stock release looks chaotic, could backfire
LONDON, June 30 (Reuters) - Just a week after the West's energy watchdog announced the release of millions of barrels of oil, forcing a drop in the oil market, prices are almost back to where they were and analysts say the policy is chaotic and could backfire.
Far from depressing prices and rescuing a fragile economic recovery in the industrialised world, the release of strategic oil stocks is piling more misery on refiners, and has raised expectations of increased supply that may not be realised.
SINGAPORE, July 1 (Reuters) - Asian equities edged higher on Friday, getting a lift as fears of an imminent default by Greece receded, while the euro lost some steam after rallying to a three-week high the previous day.
Data on Thursday showing that factory activity in the U.S. Midwest accelerated in June also helped lift equities, with Japan's benchmark Nikkei average rising 0.6 percent, and South Korean shares climbing 1 percent.
OIL: Brent posts biggest quarterly drop in a year
NEW YORK, June 30 (Reuters) - Brent crude futures finished slightly higher in seesaw trading on Thursday, with investors concerned about violence in Greece and uncertainty surrounding the IEA's emergency oil release plan.
"With U.S. trade winding down for the end of the quarter and the July 4th holiday coming up, we may be seeing some pause in frantic activity, with traders less willing to open new positions," analyst Tim Evans of Citi Futures Perspective said.
NATURAL GAS: Natural gas ends up on EIAs, down sharply in June
NEW YORK, June 30 (Reuters) - Front-month U.S. natural gas futures ended higher on Thursday, but in June suffered their biggest monthly loss since October, as record high production continued to weigh on sentiment despite decent demand.
"We were up today in response to the lower than expected storage number, and we could see some short covering tomorrow ahead of the long holiday weekend. It's going to be very hot," a Pennsylvania trader said, referring to the U.S. Independence Day holiday on Monday.
EURO COAL: Calm but braced for more prompt South African
LONDON, June 30 (Reuters) - Prompt physical coal values were little changed on Thursday after a day of quiet trading.
Few utilities in Europe need fresh coal despite increased coal burn and few Indian or Chinese enquiries were reported.
However, increased availability of prompt South African coal for July and August is expected to put more downward pressure on prices.
COMMODITIES: Biggest quarterly loss since '08; grains slide
NEW YORK, June 30 (Reuters) - Commodities posted the largest quarterly loss since the 2008 financial crisis, and ended June on the defensive after a plunge in grain prices on Thursday.
"It's a bit like automakers who offer incentives to buy. People get hooked on them, and before one program ends, they're thinking about when the next one will come along," said Gregory Whiteley, portfolio manager at DoubleLine Capital, a Los Angeles-based fund with some $12 billion in assets.
Govt expects to sell all 30 mln barrels SPR oil-US official
WASHINGTON, June 30 (Reuters) - The U.S. government expects to sell all 30 million barrels of oil it offered in an auction this week from the Strategic Petroleum Reserve and is prepared to take more action to ensure oil supplies are adequate to meet demand, an administration official told Reuters on Thursday.
"The oversubscription of the SPR auction indicates both that supply disruption is a factor and that we will be able to place all 30 million barrels into the market," the official said. "We will continue to monitor the adequacy of oil supply and are prepared to act further if necessary."
OPEC June output rises, yet to offset Libya
LONDON, June 30 (Reuters) - OPEC oil output is expected to remain lower in June than before the conflict in Libya largely shut down its oil industry, despite extra supply from Saudi Arabia and other Gulf members, a Reuters survey found on Thursday.
Supply from all 12 members of the Organization of the Petroleum Exporting Countries is expected to average 29.45 million barrels per day (bpd) this month, up from a revised 29.1 million bpd in May, the survey of
OPEC exports to fall in 4 weeks to July 16 -analyst
Seaborne oil exports from OPEC, excluding Angola and Ecuador, will fall by 160,000 barrels in the four weeks to July 16, an analyst who estimates future shipments forecast on Thursday.
Exports will fall to 22.70 million barrels per day (bpd) on average from 22.86 million bpd in the four weeks to June 18, UK consultancy Oil Movements said in its latest weekly estimate.
Oil stock release looks chaotic, could backfire
LONDON, June 30 (Reuters) - Just a week after the West's energy watchdog announced the release of millions of barrels of oil, forcing a drop in the oil market, prices are almost back to where they were and analysts say the policy is chaotic and could backfire.
Far from depressing prices and rescuing a fragile economic recovery in the industrialised world, the release of strategic oil stocks is piling more misery on refiners, and has raised expectations of increased supply that may not be realised.
20110701 1235 Global Economic Related News.
US: Consumer comfort hits 10-week high on gas price drop
Consumer confidence rose to the highest level in 10 weeks, as falling gasoline prices provided relief to Americans contending with 9.1% joblessness. The Bloomberg Consumer Comfort Index increased to minus 43.9 for the period ended 26 June after dropping to minus 44.9 the previous week. (Bloomberg)
US: Jobless claims decreased 1,000 last week to 428,000
Jobless claims in US fell by 1,000 to 428,000 in the week ended 25 June, its Labor Department figures showed. Nonetheless, the number reported came in higher than previous economists’ forecast at median of 420,000, indicating little progress in the labor market. (Bloomberg)
US: Geithner will be doing job for foreseeable future
US Treasury Secretary Timothy Geithner downplayed reports Thursday that he was on the verge of leaving his post due to family concerns. "I am going to be doing it for the foreseeable future," Geithner said. An earlier report by Bloomberg News said Geithner had signaled that he was considering leaving the administration after a deficit deal is reached. (MarketWatch.com)
US stocks rally on optimism Greece will avoid debt default
US stocks rallied, giving the Standard & Poor’s 500 Index its biggest four-day gain since September, amid increased optimism Greece will avoid default and after American business activity improved. Industrial, energy and technology companies led gains in the S&P 500, rising at least 1.4%, as investors bought stocks tied to economic growth. Caterpillar Inc., United Technologies Corp. and 3M Co. climbed at least 1.8% to help the Dow Jones Industrial Average erase its quarterly loss. Hewlett-Packard Co. added 2.4% after a report that private-equity firms want the computer maker to split up. The S&P 500 advanced 1% to 1,320.64 at 4pm in New York, rising 4.1% in four days. The Dow average gained 152.92 points, or 1.3%, to 12,414.34 yesterday. (Bloomberg)
U.S: Businesses expand in June, signals that economic growth may pick up in the second half of the year. The Institute for Supply Management-Chicago Inc.'s business barometer climbed to 61.1 from 56.6 in May. Readings greater than 50 signal expansion. (Source: Bloomberg)
E.U: Growth of loans to households and companies quickened in May as faster economic growth fueled demand for credit. Loans to the private sector rose 2.7% YoY after advancing an annual 2.6% YoY in April, the European Central Bank said. The rate of growth in M3 money supply, which the Frankfurt-based ECB uses as a gauge of future inflation, climbed to 2.4% YoY from 2% YoY in April. (Source: Bloomberg)
EU: Papandreou clinches votes for second Greek budget bill
Greek Prime Minister George Papandreou’s drive to stave off the euro area’s first sovereign default stayed on track after lawmakers backed a bill to authorize an austerity plan required to keep rescue aid flowing. The premier won the vote by 155 to 136, allowing him to implement a EUR78bn (USD112bn) package of tax increases and asset sales that was a condition of receiving further European Union aid. Those steps were approved in a vote which was marred by street violence as police fired tear gas on crowds. That ballot was carried by 155 votes to 138. (Bloomberg)
Germany: Unemployment declined for a 24th straight month in June, underscoring the resilience of Europe's largest economy amid the euro region's debt crisis. The number of people out of work fell a seasonally adjusted 8,000 to 2.97 million, the Nuremberg-based Federal Labor Agency said. The jobless rate held at 7%, the lowest since records for a reunified Germany began in 1991. (Source: Bloomberg)
Germany: Retail sales unexpectedly fell in May as oil-driven inflation sapped household incomes. Sales, adjusted for inflation and seasonal swings, fell 2.8% MoM from April, when they stagnated. Sales rose 2.2% YoY. (Source: Bloomberg)
Japan: Unemployment rate unexpectedly fell to 4.5% in May as more people stopped looking for work after the nations largest earthquake on record. The jobless rate fell from 4.7% in April. (Source: Bloomberg)
S. Korea: Inflation breaches BOK target for sixth month in June, adding pressure on the bank to boost borrowing costs again. Consumer prices rose 4.4% YoY, after a 4.1% YoY gain in May. Prices rose 0.2% MoM from May. (Source: Bloomberg)
S. Korea: May output growth rebounds from seventh-month low as chip, machinery and car makers boosted output. Output climbed 8.3% YoY after gaining a revised 6.9% YoY in April. Production rose 1.7% MoM from April, when it declined a revised 1.7% MoM. (Source: Bloomberg)
South Korea: Growth forecast cut as inflation to top target
South Korea cut its 2011 growth forecast and raised an inflation estimate to beyond President Lee Myung Bak’s target after global demand weakened and energy costs climbed. The economy will expand 4.5%, the Finance Ministry said, down from a 5% estimate in December. Consumer prices are expected to rise 4%, exceeding the previous 3% projection. (Bloomberg)
Taiwan: Lifts interest rate a fifth time as home prices gain. The central bank raised the discount rate on 10-day loans to banks to 1.875% from 1.75%. (Source: Bloomberg)
Russia: Leaves rates unchanged on prices, global economy
Russia’s central bank left interest rates unchanged, refraining from monetary tightening for the first time since November as inflation slows and Europe’s debt crisis threatens to sap a rebound in global growth. “This decision was based on the assessment of inflation risks and risks to the sustainability of economic growth,” the central bank said. (Bloomberg)
Consumer confidence rose to the highest level in 10 weeks, as falling gasoline prices provided relief to Americans contending with 9.1% joblessness. The Bloomberg Consumer Comfort Index increased to minus 43.9 for the period ended 26 June after dropping to minus 44.9 the previous week. (Bloomberg)
US: Jobless claims decreased 1,000 last week to 428,000
Jobless claims in US fell by 1,000 to 428,000 in the week ended 25 June, its Labor Department figures showed. Nonetheless, the number reported came in higher than previous economists’ forecast at median of 420,000, indicating little progress in the labor market. (Bloomberg)
US: Geithner will be doing job for foreseeable future
US Treasury Secretary Timothy Geithner downplayed reports Thursday that he was on the verge of leaving his post due to family concerns. "I am going to be doing it for the foreseeable future," Geithner said. An earlier report by Bloomberg News said Geithner had signaled that he was considering leaving the administration after a deficit deal is reached. (MarketWatch.com)
US stocks rally on optimism Greece will avoid debt default
US stocks rallied, giving the Standard & Poor’s 500 Index its biggest four-day gain since September, amid increased optimism Greece will avoid default and after American business activity improved. Industrial, energy and technology companies led gains in the S&P 500, rising at least 1.4%, as investors bought stocks tied to economic growth. Caterpillar Inc., United Technologies Corp. and 3M Co. climbed at least 1.8% to help the Dow Jones Industrial Average erase its quarterly loss. Hewlett-Packard Co. added 2.4% after a report that private-equity firms want the computer maker to split up. The S&P 500 advanced 1% to 1,320.64 at 4pm in New York, rising 4.1% in four days. The Dow average gained 152.92 points, or 1.3%, to 12,414.34 yesterday. (Bloomberg)
U.S: Businesses expand in June, signals that economic growth may pick up in the second half of the year. The Institute for Supply Management-Chicago Inc.'s business barometer climbed to 61.1 from 56.6 in May. Readings greater than 50 signal expansion. (Source: Bloomberg)
E.U: Growth of loans to households and companies quickened in May as faster economic growth fueled demand for credit. Loans to the private sector rose 2.7% YoY after advancing an annual 2.6% YoY in April, the European Central Bank said. The rate of growth in M3 money supply, which the Frankfurt-based ECB uses as a gauge of future inflation, climbed to 2.4% YoY from 2% YoY in April. (Source: Bloomberg)
EU: Papandreou clinches votes for second Greek budget bill
Greek Prime Minister George Papandreou’s drive to stave off the euro area’s first sovereign default stayed on track after lawmakers backed a bill to authorize an austerity plan required to keep rescue aid flowing. The premier won the vote by 155 to 136, allowing him to implement a EUR78bn (USD112bn) package of tax increases and asset sales that was a condition of receiving further European Union aid. Those steps were approved in a vote which was marred by street violence as police fired tear gas on crowds. That ballot was carried by 155 votes to 138. (Bloomberg)
Germany: Unemployment declined for a 24th straight month in June, underscoring the resilience of Europe's largest economy amid the euro region's debt crisis. The number of people out of work fell a seasonally adjusted 8,000 to 2.97 million, the Nuremberg-based Federal Labor Agency said. The jobless rate held at 7%, the lowest since records for a reunified Germany began in 1991. (Source: Bloomberg)
Germany: Retail sales unexpectedly fell in May as oil-driven inflation sapped household incomes. Sales, adjusted for inflation and seasonal swings, fell 2.8% MoM from April, when they stagnated. Sales rose 2.2% YoY. (Source: Bloomberg)
Japan: Unemployment rate unexpectedly fell to 4.5% in May as more people stopped looking for work after the nations largest earthquake on record. The jobless rate fell from 4.7% in April. (Source: Bloomberg)
S. Korea: Inflation breaches BOK target for sixth month in June, adding pressure on the bank to boost borrowing costs again. Consumer prices rose 4.4% YoY, after a 4.1% YoY gain in May. Prices rose 0.2% MoM from May. (Source: Bloomberg)
S. Korea: May output growth rebounds from seventh-month low as chip, machinery and car makers boosted output. Output climbed 8.3% YoY after gaining a revised 6.9% YoY in April. Production rose 1.7% MoM from April, when it declined a revised 1.7% MoM. (Source: Bloomberg)
South Korea: Growth forecast cut as inflation to top target
South Korea cut its 2011 growth forecast and raised an inflation estimate to beyond President Lee Myung Bak’s target after global demand weakened and energy costs climbed. The economy will expand 4.5%, the Finance Ministry said, down from a 5% estimate in December. Consumer prices are expected to rise 4%, exceeding the previous 3% projection. (Bloomberg)
Taiwan: Lifts interest rate a fifth time as home prices gain. The central bank raised the discount rate on 10-day loans to banks to 1.875% from 1.75%. (Source: Bloomberg)
Russia: Leaves rates unchanged on prices, global economy
Russia’s central bank left interest rates unchanged, refraining from monetary tightening for the first time since November as inflation slows and Europe’s debt crisis threatens to sap a rebound in global growth. “This decision was based on the assessment of inflation risks and risks to the sustainability of economic growth,” the central bank said. (Bloomberg)
20110701 1233 Malaysia Corporate Related News.
KLCI chart reading :
upside biased with possible pullback correction.
Mah Sing: Banking on govt to hit RM5b target. Mah Sing Group Bhd is eyeing government-related projects to help achieve its RM5b in target market capitalisation in five years. With its track record and healthy financial standing, the company is optimistic of being able to collaborate with the government especially in the 1,200 hectares of Rubber Research Institute Malaysia land in Sungai Buloh and the old Sungai Besi airport land, which is slated to be transformed into Bandar Malaysia. (Source: Business Times)
Star Pub: Appoints new MD. Star Publications (M) Bhd has appointed Ho Kay Tat as group MD/CEO with effect from July 1, 2011. Ho, 52, who was the executive director/CEO, succeeds Datin Linda Ngiam Pick Ngoh, who has retired but remains on the board as a non-executive director. (Source: Bursa Malaysia)
Energy: Need for more power plants. The Government needs to commission more power plants in the country to cope with the rising demand for electricity in Peninsular Malaysia. The peninsular could face a power shortage by 2015 based on Governments targeted economy growth rate of 6% per year for the next 5 years. (Source: The Star)
Petronas Chemicals to go ahead with USD1.5bn Sabah urea project
Petronas Chemicals Bhd will go ahead with its USD1.5bn Sabah ammonia urea project which will have urea capacity of 1.2m tonnes per annum. It said on Thursday, 30 June the plant would be built on 166 acres in the Sipitang industrial park in Sabah. The RM1.5bn development cost would be financed from internal cash reserves and external borrowings. Petronas Chemicals said a special purpose vehicle would undertake the project and work is expected to start in the second quarter of 2012 and commissioning in 2015. It said the new plant supported its strategy to expand its production capacity and would provide it opportunities to further capitalise on its strengths and marketing position in Asia Pacific. (Financial Daily)
EON Bank transfers operations to HLB
The entire business of EON Bank Bhd, including all its assets and liabilities, has been successfully transferred to Hong Leong Bank Bhd (HLB) effective today. This is in accordance with an order granted by the High Court on 17 June, thus completing a major milestone in the banking merger. HLBB said in a statement that customers and business associates could expect business to continue as usual at the bank without any interruption in service. All contracts entered with EON Bank before the effective date of the Vesting Order of 1 July would be vested into HLB. They remain in effect and under the same terms and conditions as mutually agreed by the contracting parties when they entered into the contract originally. (StarBiz)
Bumi Armada tendering for 6 jobs worth USD300m to USD500m each
Main Board-bound Bumi Armada Bhd is tendering for six floating production, storage and offloading (FPSO) jobs worth between USD300m and USD500m each. Its chief executive officer Hassan Basma said on Thursday, 30 June the company had an orderbook of RM5.8bn as at 1 June, with optional extension periods valued at RM2.5 bn. He said this excluded revenues from its LOA with Apache for the Armada Prima FPSO and its second letter of award with ONGC for the D-1 Field FPSO. Hassan was speaking to reporters at the launch of the prospectus. The company plans to raise between RM1.9bn and RM2bn from its initial public offering exercise. Hassan said of the IPO proceeds, about RM592m would be for capital expenditure. (Financial Daily)
Hibiscus Petroleum to raise RM150m to RM300m
Hibiscus Petroleum Bhd plans to raise between RM150m and RM300m from its proposed listing on the Main Market of Bursa Malaysia. The special purpose acquisition company, which launched its prospectus yesterday, said that so far it had raised more than RM150m from selected investors under the private placement exercise. The initial public offering involves the public issue of new shares which are placed out to selected investors and for applications by the Malaysian public. This is on the basis of one free detachable warrant (Warrant-A) for every one share subscribed at an issue price of 75 sen per share. The listing exercise comprises of an issue of between 190m and up to 390m new shares together with between 190m and up to 390m Warrants-A by way of private placement to selected investors. There will also be an issue of 10.0m new ordinary shares together with 10m Warrants-A, to be allocated via balloting, to the public. (Financial Daily)
Eversendai posts Q1 net profit of RM22.6m
Construction outfit Eversendai Corp, en route for listing on the Main Market of Bursa Malaysia today, posted a net profit of RM22.56m on revenue of RM207.85m for the first quarter ended 31 March, largely due to contribution from the company's projects in the Middle East. The company, through an initial public offering (IPO) exercise carried out recently, raised RM270m via a 30% stake sale. The share price for the retail portion of the IPO exercise was fixed at RM1.62 per share and institutional price at RM1.70 per share. (StarBiz)
20110701 1224 Global Market Related News.
DJIA chart reading : upside biased with possible pullback correction.
Hang Seng chart reading : correction range bound little downside biased.
Asian Stocks Rise for Fourth Day on Greece Vote (Source: Bloomberg)
Asian stocks rose, driving the regional benchmark index to its longest advance since February, on optimism Greece will avoid default and after U.S. manufacturing unexpectedly expanded at a faster pace in June, lessening risk for bank earnings and exports. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s largest publicly traded bank, rose 1.8 percent in Tokyo. Toyota Motor Corp. (7203), the world’s No. 1 carmaker by market value, gained 0.9 percent. Samsung Electronics Co., an electronics maker that gets about 42 percent of sales from the U.S. and Europe, increased 2.3 percent in Seoul.
Stocks, euro hit 3-wk highs on Greek vote hopes
LONDON, June 30 (Reuters) - World stocks and the euro hit three-week highs on Thursday after Greece took a step closer to avoiding a default in the short-term.
"The main focus will shift to the implementation of the austerity plan and whether Greece is reaching its target," RBS said in a note.
U.S. Businesses Grow, Consumer Confidence Gains in Sign Growth May Pick Up (Source: Bloomberg)
Businesses in the U.S. unexpectedly expanded at a faster pace in June and consumer confidence reached a 10-week high, signs that economic growth may pick up in the second half of the year. The Institute for Supply Management-Chicago Inc.’s business barometer climbed to 61.1, exceeding the highest forecast in a Bloomberg News survey, from 56.6 in May. Readings greater than 50 signal expansion. The Bloomberg Consumer Comfort Index rose to minus 43.9 from minus 44.9.
U.S. Stocks Rally for a Fourth Day Amid Optimism Greece Will Avoid Default (Source: Bloomberg)
U.S. stocks rallied, giving the Standard & Poor’s 500 Index its biggest four-day gain since September, amid increased optimism Greece will avoid default and after American business activity improved.
US pending home sales rise, but recovery far away
WASHINGTON, June 29 (Reuters) - Pending sales of existing U.S. homes rebounded from a seven-month low in May but demand for mortgages sank last week and the market is still struggling under the weight of a glut of unsold properties.
The National Association of Realtors said on Wednesday its Pending Home Sales Index increased 8.2 percent to 88.8. Pending homes sales lead actual sales of homes by a month or two.
Geithner to Consider Leaving After Debt Debate (Source: Bloomberg)
Treasury Secretary Timothy F. Geithner has signaled to White House officials that he’s considering leaving the administration after President Barack Obama reaches an agreement with Congress to raise the federal debt limit, according to three people familiar with the matter.
Dollar Advances on Outlook for U.S. Economy; Aussie Drops on China Data (Source: Bloomberg)
The dollar rose against most of its major peers before a report that may show U.S. consumer confidence was better than previously reported, easing concern that a recovery in the world’s largest economy is slowing.
Consumer Confidence in U.S. at 10-Week High on Fuel, Bloomberg Index Shows (Source: Bloomberg)
Consumer confidence rose to the highest level in 10 weeks as falling gasoline prices provided relief to Americans contending with 9.1 percent joblessness. The Bloomberg Consumer Comfort Index increased to minus 43.9 for the period ended June 26 after dropping to minus 44.9 the prior week. The change in the comfort gauge last week was within the survey’s margin of error of 3 points. The measure among those with a college degree or more was the least negative in more than two years.
S&P Would Lower U.S. Credit Rating to D on Failure to Increase Debt Limit (Source: Bloomberg)
Standard & Poor’s would cut the U.S. credit rating to its lowest level and Moody’s Investors Service said it will probably 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 if the U.S. can’t pay its debt, John Chambers, chairman of the company’s sovereign rating committee, said today. Moody’s said it would probably assign a position in the Aa range, or within three steps of its highest level.
China’s Manufacturing Growth Cools (Source: Bloomberg)
A Chinese manufacturing index fell to the lowest level since February 2009, signaling that the world’s second-biggest economy is cooling as export demand weakens and the government reins in credit to control inflation. The Purchasing Managers’ Index was at 50.9 in June compared with 52 in May, the China Federation of Logistics and Purchasing said in an e-mailed statement today. A separate survey showed manufacturing output declined for the first time since July 2010, HSBC Holdings Plc said today. Pressure for additional monetary tightening may be easing after manufacturers’ input prices rose at the slowest pace since July 2010 in the logistics federation study. The People’s Bank of China has paused for 12 weeks in raising benchmark interest rates, the longest gap since increases began in October.
Japanese Stocks Advance for a Fourth Day on Greece Vote, U.S. Economy (Source: Bloomberg)
Japanese stocks rose for a fourth day amid optimism Greece will avoid default and after U.S. manufacturing unexpectedly expanded at a faster pace in June, easing concern the world’s largest economy is slowing.
South Korea’s Inflation Rate Breaches Central Bank Target for Sixth Month (Source: Bloomberg)
July 1 (Bloomberg) --South Korea’s inflation exceeded the central bank’s target for a sixth straight month in June, adding pressure on the bank to boost borrowing costs again even as export growth slows. Consumer prices rose 4.4 percent from a year earlier, after a 4.1 percent gain in May, Statistics Korea said today in Gwacheon, south of Seoul. Exports expanded 14.5 percent last month, the slowest pace since October 2009, missing analysts’ forecasts for a 17.6 percent gain, a separate report showed.
German Banks Reach an Agreement on Rolling Over Greek Debt, Schaeuble Says (Source: Bloomberg)
Deutsche Bank AG (DBK) and Allianz SE (ALV), Germany’s biggest bank and insurer, were among the nation’s financial firms that agreed to reinvest in Greek debt to help avoid the euro area’s first default. German banks and insurers agreed to roll over at least 2 billion euros ($2.9 billion) from Greek bonds maturing through 2014, Finance Minister Wolfgang Schaeuble said at a press conference in Berlin today. The country’s so-called bad banks will provide an additional 1.2 billion euros, he said.
Trichet Signals ECB Ready to Rise Rates As Greece Tries to Avoid Default (Source: Bloomberg)
European Central Bank President Jean-Claude Trichet signaled officials remain determined to raise borrowing costs next week even as Greece struggles to stave off a default amid violent street protests. “The monetary policy stance is still accommodative and risks to price stability are on the upside,” Trichet told lawmakers in Brussels today. “We are in a state of strong vigilance and we stand ready to act in a firm and timely manner to avoid that recent price developments give rise to broad-based inflationary pressures over the medium term.”
ECB flags July rate rise as inflation stays high
BRUSSELS, June 30 (Reuters) - The European Central Bank signalled it would raise interest rates again next week as data on Thursday showed inflation in June stabilised well above the bank's target.
The European Union's statistics office said consumer prices in the 17 countries using the euro were 2.7 percent higher in June than a year earlier, the same as in May. Economists polled by Reuters had forecast a figure of 2.8 percent.
German Unemployment Fell for 24th Month in June, Jobless Rate Held Steady (Source: Bloomberg)
German unemployment declined for a 24th straight month in June, underscoring the resilience of Europe’s largest economy amid the euro region’s debt crisis. The number of people out of work fell a seasonally adjusted 8,000 to 2.97 million, the Nuremberg-based Federal Labor Agency said today. Economists forecast a drop of 17,000, according to the median of 32 estimates in a Bloomberg News survey. The jobless rate held at 7 percent, the lowest since records for a reunified Germany began in 1991.
U.K. Consumer Confidence Declined in June on Deteriorating Economy Outlook (Source: Bloomberg)
U.K. consumer sentiment fell more than economists forecast in June, erasing part of the boost brought from public holidays as Britons lost confidence in the economy, a report by GfK NOP Ltd. showed. An index of sentiment slipped 4 points to minus 25 from May, when it increased 10 points, the London-based research group said in an e-mailed report today. All five measures of the index declined, with confidence in the economic outlook for the next year dropping 3 points to minus 18.
Papandreou Wins Vote on Second Greek Austerity Bill in Bid for More EU Aid (Source: Bloomberg)
Greek Prime Minister George Papandreou’s drive to stave off the euro area’s first sovereign default stayed on track after lawmakers backed a bill to authorize an austerity plan required to keep rescue aid flowing. The premier won the vote by 155 to 136, allowing him to implement a 78 billion-euro ($112 billion) package of tax increases and asset sales that was a condition of receiving further European Union aid. Those steps were approved in a vote yesterday which was marred by street violence as police fired tear gas on crowds. That ballot was carried by 155 votes to 138.
FOREX-Euro gains, Greek debt issue seen under control for now
LONDON, June 30 - The euro rallied to a three-week high against the dollar on Thursday, swept higher by demand from a semi-official European name and a wave of stop-loss buying and extending a rally after Greece moved a step closer to securing international aid.
The single currency jumped to a 15-month high versus sterling, also boosted after comments from European Central Bank President Jean-Claude Trichet reinforced speculation that the ECB will raise interest rates next week.
20110701 1221 Global Commodities Related News.
Corn (Source: CME)
US corn futures finish at 3 1/2-month lows as surprising USDA data fuelled a record-breaking price drop. USDA stunned traders by pegging corn plantings and inventories as of June 1 well above expectations. Increase in supplies gives the market cushion in case poor weather hurts output this year, analysts say. Market participants had been worried about strong demand and unfavorable weather draining supplies. Nearby CBOT July corn, trading without limits, drops 69c to $6.29 a bushel. December corn falls the 30c limit to $6.20 1/2
Wheat (Source: CME)
US wheat futures settle limit down at the CBOT under spillover pressure from exchange-limit losses in corn, which dragged down wheat as both grains are used for animal feed. Larger-than-expected corn supplies indicate farmers may not feed as much wheat as expected, analysts say. Wheat will "remain the most adequately supplied of the grains next year," according to Morgan Stanley. CBOT September wheat drops the daily 60c limit to $6.14 1/4 a bushel KCBT September sinks 56 3/4c to $7.07 1/4 and MGE September falls 54 1/2c to $7.95.
Rice (Source: CME)
US rice futures close up the daily 50c limit as USDA slashes its plantings estimates. Government pegged rice plantings at 2.7M acres, down from its March estimate of 3M. Cut fuels supply concerns as growing areas have struggled with poor weather this spring. Flooding from the Mississippi River submerged some acres, and the South has recently been too hot and dry. CBOT July rice, trading without limits, climbs 62c to $13.88 1/2 per hundredweight. September rice jumps the 50c limit to $14.84 1/2.
US Corn Futures Plummet On USDA Reports (Source: CME)
Futures prices for U.S. corn plummeted after federal forecasters reported larger-than-expected supplies and raised their outlook for the fall harvest. Corn for July delivery fell as much as 12% on the Chicago Board of Trade, establishing new records for an outright daily price move and percentage change in the market. Corn for delivery for later in the year and in 2012 fell 30 cents, the daily limit on one-day declines. The July contract wasn't subject to that limit since it is nearing expiration. Traders were shocked by two reports from the U.S. Department of Agriculture. One report estimated U.S. farmers planted 92.3 million acres of corn this spring, up 1.7% from an estimate issued just three weeks ago. The other report put the amount of corn in U.S. inventories as of June 1 at 3.67 billion bushels, down 15% from a year ago, but well above analysts' expectations.
Corn prices rallied to a record high in early June as traders fretted that precariously low supplies and ongoing strong demand could lead to scattered shortages by the end of the summer. Furthermore, the fall crop was seen not being able to replenish inventories as wet spring weather kept farmers from planting all the corn they could. Today's report undercut those twin worries, driving the historic selloff. "This is a definitely a shock to the system. We had two whammies with acreage and stocks," said Jerry Gidel, analyst for North America Risk Management Services, a brokerage in Chicago. Corn plantings this year are estimated to be the second highest since 1944, behind only the 93.5 million acres planted in 2007, according to the USDA. Many analysts, however, expected the agency would mimic a lower estimate from June 9 that had pegged plantings at about 90.7 million acres. The report was based on surveys of farmers, while the earlier report was based on agency projections.
The USDA also said it expects farmers to actually harvest 84.9 million acres, a 1.7-million-acre increase from the June 9 forecast. Expectations for a smaller planting were driven by excessive rains and flooding in the eastern Corn Belt and northern Plains in April and May that kept farmers out of their fields. The agency said that planting was indeed delayed in early May through much of the Midwest, but the "planting conditions improved during May in most of the corn-producing areas of the country." Traders "underestimated how the acres lost in the east could be made up by plantings in the west, and by plantings on the lawn," said John Kleist, senior analyst at ebottrading.com, an Illinois brokerage. Yet, federal officials acknowledged its crop data could have been skewed by the poor weather. The USDA, in a statement issued separately from the plantings estimates, said it would survey farmers again in North Dakota, South Dakota, Minnesota and Montana in July to find out what they planted.
The government collected planted acreage information during the first two weeks of June, but "a large percentage of acres remained to be planted" at that time, the USDA's National Agricultural Statistics Service said. Morgan Stanley, in a note to clients, predicted the USDA would eventually lower its estimate for how much corn will be harvested due to flooding in the Midwest. The firm said it was still "broadly bullish" on corn prices. As for supplies, the USDA put corn inventories, whether stored on farms or in off-farm facilities, at 3.67 billion bushels as of June 1. That's a 15% decrease from the 4.3 billion bushels in stockpiles available a year ago, yet analysts were expecting a 23% decrease. Many analysts didn't expect demand would pull back this spring and leave more grain in storage. Livestock producers have been scrambling to find physical supplies of corn for feed, while ethanol producers are expected to consume a record 5.05 billion bushels of corn next year.
The reports left some analysts and traders to question the accuracy as projections didn't appear to match what they are seeing in the market. "I think you probably raised many more questions than you answered today and you're probably going to raise a credibility issue with the USDA," said Jim Gerlach, president of A/C Trading, a commodities brokerage in Indiana. The selloff in corn futures pressured the soybean and wheat markets. Wheat for September delivery recently fell 7.9% to $6.20 3/4 a bushel, while soybeans for August delivery dropped 1.2% to $13.12 a bushel at the Chicago Board of Trade.
Corn Extends Worst Monthly Loss Since 2008, Wheat Falls on U.S. Plantings (Source: Bloomberg)
Corn extended its biggest monthly loss since October 2008 and wheat tumbled to the lowest level in almost a year after the U.S. reported acreage and inventories that topped estimates by analysts. Corn for December delivery slumped as much as 6.3 percent to $5.815 a bushel, the lowest for the most-active contract on the Chicago Board of Trade since Dec. 16, and traded at $5.8875 at 10:14 a.m. Singapore time. The grain lost 17 percent in June, narrowing the gain in the past year to 53 percent.
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.
India panel to decide on rice, wheat exports-food min
NEW DELHI, June 29 (Reuters) - India's food ministry is not against grains exports and a panel of ministers will decide on rice and wheat exports, the food minister said on Wednesday, without specifying any time frame.
"Food ministry is not negative to exports, but we will have to look at the demand in view of the Food Security Bill. We will place the issue before EGoM (Empowered Group of Ministers)," K.V. Thomas told reporters.
India food ministry gives nod to possible grain exports
NEW DELHI, June 29 (Reuters) - India's food minister gave a nod to possible exports of grains because of bumper crops and overflowing storage on Wednesday, after government sources told Reuters there could be one million tonnes of both wheat and rice offered.
India is one of the world's biggest producers of rice and wheat but also one of the largest consumers and has kept a tight rein on exports since 2007 to ensure it can provide cheap food grains to the poor.
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.
Rains to reduce wheat harvest in central Ukraine
KIEV, June 30 (Reuters) - Heavy rains across Ukraine's central and southern regions are likely to reduce the yields of wheat and barley by 5 to 10 percent, a senior weather forecaster said on Thursday.
Tetyana Adamenko, who heads the agricultural department of the Ukrainian state meteorological centre, told Reuters that the body, which forecast the harvest of up to 44.5 million tonnes of grain in 2011, would review its crop forecast in mid-July.
Ukraine's grain exports fell to about 12 million tonnes in the 2010/11 from 21.5 Mln 09/10 - UKRAINIAN GRAIN UNION
Jun 30 (Reuters) - KIEV, June 30 (Reuters) - Ukraine's grain exports fell to about 12 million tonnes in the 2010/11 season from 21.5 million in the previous one, Ukrainian Agrarian Confederation (UAC) grain union said on Thursday.
UAC director Serhiy Stoyanov told a news conference that in the June 1-29 period Ukraine had exported 1.34 million tonnes of grain including 600,000 of wheat, 240,000 of barley and 460,000 of maize.
Pakistan Wheat Exports At Near Standstill (Source: CME)
Pakistan's wheat exports have come to a near standstill, with shipments being delayed because the provincial government in Sindh isn't allowing transit of grain from Punjab to the port in Karachi, trading executives said. Pakistan's wheat exports have hit a record 2.0 million metric tons this year, and contracts for shipments of another 200,000 tons to Southeast Asia, the Middle East and Africa are yet to be executed. Pakistan has been filling a crucial gap in the global milling wheat trade earlier this year due to lack of supply from the Black Sea region. The Sindh provincial government is cracking down on exports from Punjab, which it is citing as the reason for rising local prices, they said. Over the last four days, wheat-laden trucks from Punjab haven't been able to reach Karachi port, said Muhammed Najib Balagamwalla, chairman of Karachi-based commodities trading company SeaTrade Group.
Traders said three shipping vessels for loading of around 65,000 tons of wheat are anchored at Karachi port and another for 12,000 tons will arrive soon. Since the trucks carrying wheat are accompanied by valid export permits from authorities in Punjab, the local Sindh government's actions to impound them aren't justified, said a Karachi-based exporter. Sindh government officials couldn't be immediately reached for comment, but according to local media reports, the authorities there have expressed concern that some traders might be using fake permits to export wheat. The Sindh government is against exports of wheat, which it says are creating shortages in some regions, and the matter will now be taken up with the federal government, the local reports said. However, Punjab has permitted exports of wheat from its latest crop, which was harvested in April and May.
Exporters insist that Pakistan still has the potential to export a few hundred thousand tons of wheat in July and August without affecting local supply because of a bumper crop of 24 million tons. Sindh local wheat procurement has fallen short of target by around 500,000 tons because middlemen are paying around PKR100 per 40 kilograms less to the farmers than the state-set intervention price, and then selling the grain to the government for a profit, said SeaTrade's Balagamwalla.
India Monsoon Rains Cover Most Parts (Source: CME)
India's monsoon rains have covered most parts of the country until June 30 and widespread rainfall is expected over the largest sugarcane growing state Uttar Pradesh in the next three to five days, the India Meteorological Department said. Rainfall from the start of the monsoon season until June 30 was 182 millimeters, 11% above the long-term average, the weather office said in its latest update. The department said a slight increase in rainfall activity is also expected in the southern regions, while scattered rains are likely over central parts. Monsoon rain in India was 10% above average between June 23 and June 29, although the level was lower than the previous week's due to weak rains in some eastern and western regions as well as the southern part, the weather office said. The country received 56.6 millimeters of rain during the period, compared with the 50-year average of 51.6 millimeters, the Department said.
There might be a lull in the rains in the first week of July and that may continue until mid-July, said an official with the weather department. Last week, the weather office forecast that monsoon rainfall this year is likely to be 95% of the long-period average, lower than the 98% it projected in April. The weather office also said that rainfall during July and August, which account for more than 60% of the seasonal showers, is expected to be 93% and 94% of the 50-year average, respectively. The June-September monsoon season brings about 70% of India's annual rain and is crucial for summer-sown crops such as rice, sugarcane, pulses, cotton and oilseeds as about 60% of the country's farmland is rain-fed. This year, the monsoon entered India's mainland two to three days early on May 29 through the southern state of Kerala.
IGC Ups 2011-12 World Grain Output Forecast (Source: CME)
The International Grains Council raised its estimate for world corn production by 15 million metric tons only hours after the U.S. Department of Agriculture stunned markets with its own estimates. The IGC now expects farmers to produce 858 million tons of the grain, up from its previous estimate of 843 million tons and 33 million tons higher compared with last year due to improving hopes for crops in the U.S. and China. Boosted by a slight rise in hopes for the world wheat crop to 666 million tons, the London-based organization now forecast global grain output will total 1.81 billion tons in 2011-12, up 17 million tons from its earlier prediction. "Changes include higher than anticipated carry-in stocks of wheat in Russia and an increased U.S. maize crop forecast," said the report. "There are also sizeable upward adjustments in the production and consumption figures for China stemming from the latest official crop data."
The news comes as world grain markets plunged in the wake of the USDA's latest report, released earlier today. European wheat futures crashed to an eight-month low and U.S. corn prices fell to their 30 cents daily trading limit in Chicago after the body stunned the market with an unexpected hike to its estimate for U.S. corn plantings and stocks next year. Yet despite the rise in output, the IGC still expects a deficit in world markets next year as consumption of grains rises 1.4% to 1.82 billion tons due to a 12 million ton rise in the use of feed grain in Europe and China.
Sugar steady below 3-1/2-month highs, coffee firms
LONDON, June 30 (Reuters) - ICE raw sugar futures consolidated near 3-1/2-month highs, supported by lower than expected Brazilian output, in early trading on Thursday, while coffee firmed, buoyed by reports that frost had reached at least two minor coffee regions in Brazil's Parana state.
Sugar futures rose and traded below Wednesday's 3-1/2-month highs, supported by lower-than-expected crush data in Brazil as dealers expressed concerns over a slow start to the harvest in the centre-south.
Brazil coffee dodges frost during a chilly night
BRASILIA, June 29 (Reuters) - Brazil's southeastern coffee regions passed through a chilly night without frost, four cooperatives said on Wednesday, after a freeze the previous night that reached a comparatively small number of farms.
Weather forecaster Somar said temperatures would keep rising in the coming days in the coffee zones of the world's top grower, but fall sharply again next week. It did not expect any frost despite "critical temperatures" expected next week.
Cheap land, less coca key to new Colombia coffee belt
BOGOTA, June 29 (Reuters) - Colombia's traditional coffee belt is losing out to a new group of producers as cheap land, lower labor costs and replacing cocaine by coffee push output growth in some southern states, growers and experts say.
Colombia, the world's top producer of high-quality Arabica beans, has experienced a migration of crops from its traditional "Eje Cafetero" zone as other provinces make gains due increases in the acreage of coffee plantations.
Rain too little to hurt Brazil cane crushing
SAO PAULO, June 29 (Reuters) - Rain early this week over Brazil's center-south was too weak to affect crushing of the new crop -- now in full swing, weather forecaster Somar said on Wednesday.
This should help mills make up for delays earlier in June when rains delayed harvesting of the world's biggest cane crop.
Oil Drops on Signs of China, U.S. Slowdown; IEA and OPEC Supplies Increase (Source: Bloomberg)
Oil declined, trimming the biggest weekly gain in almost three months, as signs of slowing manufacturing growth in China and the U.S., the world’s biggest energy users, stoked speculation fuel demand may falter. Futures slipped as much as 0.7 percent, dropping for the first day in four, after China’s Purchasing Managers’ Index fell to the lowest since February 2009. A report today may show a slowdown in U.S. manufacturing. Prices also slid as the U.S. offered 30.2 million barrels of oil from strategic reserves under an IEA plan to stabilize prices and OPEC boosted supplies.
India plans mining licence to attract foreign investors
NEW DELHI, June 29 (Reuters) - India's draft mining bill will offer a prospecting licence guaranteeing the holder the right to produce 100 percent of any find, as the country seeks to attract foreign money and technology to its underperforming mining sector.
The bill will also create an independent regulator for the sector, Mines Secretary S. Vijay Kumar told Reuters, and should be approved by end-2012.
India plans mining licence to attract foreign investors
NEW DELHI, June 29 (Reuters) - India's draft mining bill will offer a prospecting licence guaranteeing the holder the right to produce 100 percent of any find, as the country seeks to attract foreign money and technology to its underperforming mining sector.
The bill will also create an independent regulator for the sector, Mines Secretary S. Vijay Kumar told Reuters, and should be approved by end-2012.
Japan July-Sept crude steel demand seen up 1.5 pct
TOKYO, June 30 (Reuters) - Japanese demand for crude steel in July-September will be just 1.5 percent higher than the previous three months despite a robust recovery in the manufacturing sector as inventory levels remain high, the trade ministry said on Thursday.
A government survey of domestic steel users, such as carmakers and electric appliance makers, in combination with high inventory levels point to total demand for crude steel of 26.92 million tonnes for the period, the second quarter of the 2011/12 financial year, the ministry said.
Turkish steel prices to increase moderately
ISTANBUL, June 30 (Reuters) - Turkish steel prices will rise in 2011-2012, but are unlikely to hit the record highs hit in 2008, as growing domestic demand and exports to new markets will be offset by a drop in exports to the Middle East and North Africa, a top Turkish industry official said.
"I was expecting steel prices to increase more in 2011 but because of political unrest in the Middle East and North Africa this was delayed," Namik Ekinci, chief executive of steelmaker Ekinciler and chairman of the Turkish steel exporters association told Reuters in an interview.
Malaysia says Lynas rare earths plant must meet conditions
KUALA LUMPUR, June 30 (Reuters) - Malaysia on Thursday asked Australian rare earths miner Lynas Corp to meet recommendations by an independent review panel on its $230-million plant, while the firm reaffirmed a year-end target for the start of production.
The plant will shore up global supplies of rare earths but is a hot political issue for Malaysian Prime Minister Najib Razak's government as the opposition plays up public concern over safety and environmental issues stirred by the plant.
Copper Declines for the First Day in Four After Rallying to Two-Month High (Source: Bloomberg)
Copper in London dropped for the first time in four days, paring a weekly increase, as some investors sold the metal to lock in gains after the metal climbed to a two-month high yesterday. Zinc and lead also declined. Three-month delivery copper on the London Metal Exchange fell as much as 0.6 percent to $9,375 a metric ton, and last traded at $9,383 by 8:04 a.m. Singapore time. The metal, which reached $9,430.15 a ton yesterday, is 3.7 percent higher this week, set for its best week in 12.
METALS-Copper rallies on relief over Greece, end of H1
LONDON, June 30 (Reuters) - Copper rallied to its highest in two months on Thursday, boosted by renewed risk appetite that stemmed from the safe passage of Greece's austerity plan, as well as positioning ahead of the end of the first half.
Three-month copper on the London Metal Exchange traded up a third of a percent at $9,350 at 1010 GMT, compared with a close of $9,320 a tonne on Wednesday. It earlier reached a peak since May 3 at $9,380 a tonne.
PRECIOUS-Gold eases as Greek optimism offsets dollar lift
LONDON, June 30 (Reuters) - Gold buckled under the weight of growing investor appetite for risk on Thursday after Greece looked increasingly likely to push through austerity measures, which offset the potentially bullish impact of a weaker dollar.
The price of gold is on course for an eleventh consecutive quarterly gain during the second three months of 2011.
US corn futures finish at 3 1/2-month lows as surprising USDA data fuelled a record-breaking price drop. USDA stunned traders by pegging corn plantings and inventories as of June 1 well above expectations. Increase in supplies gives the market cushion in case poor weather hurts output this year, analysts say. Market participants had been worried about strong demand and unfavorable weather draining supplies. Nearby CBOT July corn, trading without limits, drops 69c to $6.29 a bushel. December corn falls the 30c limit to $6.20 1/2
Wheat (Source: CME)
US wheat futures settle limit down at the CBOT under spillover pressure from exchange-limit losses in corn, which dragged down wheat as both grains are used for animal feed. Larger-than-expected corn supplies indicate farmers may not feed as much wheat as expected, analysts say. Wheat will "remain the most adequately supplied of the grains next year," according to Morgan Stanley. CBOT September wheat drops the daily 60c limit to $6.14 1/4 a bushel KCBT September sinks 56 3/4c to $7.07 1/4 and MGE September falls 54 1/2c to $7.95.
Rice (Source: CME)
US rice futures close up the daily 50c limit as USDA slashes its plantings estimates. Government pegged rice plantings at 2.7M acres, down from its March estimate of 3M. Cut fuels supply concerns as growing areas have struggled with poor weather this spring. Flooding from the Mississippi River submerged some acres, and the South has recently been too hot and dry. CBOT July rice, trading without limits, climbs 62c to $13.88 1/2 per hundredweight. September rice jumps the 50c limit to $14.84 1/2.
US Corn Futures Plummet On USDA Reports (Source: CME)
Futures prices for U.S. corn plummeted after federal forecasters reported larger-than-expected supplies and raised their outlook for the fall harvest. Corn for July delivery fell as much as 12% on the Chicago Board of Trade, establishing new records for an outright daily price move and percentage change in the market. Corn for delivery for later in the year and in 2012 fell 30 cents, the daily limit on one-day declines. The July contract wasn't subject to that limit since it is nearing expiration. Traders were shocked by two reports from the U.S. Department of Agriculture. One report estimated U.S. farmers planted 92.3 million acres of corn this spring, up 1.7% from an estimate issued just three weeks ago. The other report put the amount of corn in U.S. inventories as of June 1 at 3.67 billion bushels, down 15% from a year ago, but well above analysts' expectations.
Corn prices rallied to a record high in early June as traders fretted that precariously low supplies and ongoing strong demand could lead to scattered shortages by the end of the summer. Furthermore, the fall crop was seen not being able to replenish inventories as wet spring weather kept farmers from planting all the corn they could. Today's report undercut those twin worries, driving the historic selloff. "This is a definitely a shock to the system. We had two whammies with acreage and stocks," said Jerry Gidel, analyst for North America Risk Management Services, a brokerage in Chicago. Corn plantings this year are estimated to be the second highest since 1944, behind only the 93.5 million acres planted in 2007, according to the USDA. Many analysts, however, expected the agency would mimic a lower estimate from June 9 that had pegged plantings at about 90.7 million acres. The report was based on surveys of farmers, while the earlier report was based on agency projections.
The USDA also said it expects farmers to actually harvest 84.9 million acres, a 1.7-million-acre increase from the June 9 forecast. Expectations for a smaller planting were driven by excessive rains and flooding in the eastern Corn Belt and northern Plains in April and May that kept farmers out of their fields. The agency said that planting was indeed delayed in early May through much of the Midwest, but the "planting conditions improved during May in most of the corn-producing areas of the country." Traders "underestimated how the acres lost in the east could be made up by plantings in the west, and by plantings on the lawn," said John Kleist, senior analyst at ebottrading.com, an Illinois brokerage. Yet, federal officials acknowledged its crop data could have been skewed by the poor weather. The USDA, in a statement issued separately from the plantings estimates, said it would survey farmers again in North Dakota, South Dakota, Minnesota and Montana in July to find out what they planted.
The government collected planted acreage information during the first two weeks of June, but "a large percentage of acres remained to be planted" at that time, the USDA's National Agricultural Statistics Service said. Morgan Stanley, in a note to clients, predicted the USDA would eventually lower its estimate for how much corn will be harvested due to flooding in the Midwest. The firm said it was still "broadly bullish" on corn prices. As for supplies, the USDA put corn inventories, whether stored on farms or in off-farm facilities, at 3.67 billion bushels as of June 1. That's a 15% decrease from the 4.3 billion bushels in stockpiles available a year ago, yet analysts were expecting a 23% decrease. Many analysts didn't expect demand would pull back this spring and leave more grain in storage. Livestock producers have been scrambling to find physical supplies of corn for feed, while ethanol producers are expected to consume a record 5.05 billion bushels of corn next year.
The reports left some analysts and traders to question the accuracy as projections didn't appear to match what they are seeing in the market. "I think you probably raised many more questions than you answered today and you're probably going to raise a credibility issue with the USDA," said Jim Gerlach, president of A/C Trading, a commodities brokerage in Indiana. The selloff in corn futures pressured the soybean and wheat markets. Wheat for September delivery recently fell 7.9% to $6.20 3/4 a bushel, while soybeans for August delivery dropped 1.2% to $13.12 a bushel at the Chicago Board of Trade.
Corn Extends Worst Monthly Loss Since 2008, Wheat Falls on U.S. Plantings (Source: Bloomberg)
Corn extended its biggest monthly loss since October 2008 and wheat tumbled to the lowest level in almost a year after the U.S. reported acreage and inventories that topped estimates by analysts. Corn for December delivery slumped as much as 6.3 percent to $5.815 a bushel, the lowest for the most-active contract on the Chicago Board of Trade since Dec. 16, and traded at $5.8875 at 10:14 a.m. Singapore time. The grain lost 17 percent in June, narrowing the gain in the past year to 53 percent.
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.
India panel to decide on rice, wheat exports-food min
NEW DELHI, June 29 (Reuters) - India's food ministry is not against grains exports and a panel of ministers will decide on rice and wheat exports, the food minister said on Wednesday, without specifying any time frame.
"Food ministry is not negative to exports, but we will have to look at the demand in view of the Food Security Bill. We will place the issue before EGoM (Empowered Group of Ministers)," K.V. Thomas told reporters.
India food ministry gives nod to possible grain exports
NEW DELHI, June 29 (Reuters) - India's food minister gave a nod to possible exports of grains because of bumper crops and overflowing storage on Wednesday, after government sources told Reuters there could be one million tonnes of both wheat and rice offered.
India is one of the world's biggest producers of rice and wheat but also one of the largest consumers and has kept a tight rein on exports since 2007 to ensure it can provide cheap food grains to the poor.
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.
Rains to reduce wheat harvest in central Ukraine
KIEV, June 30 (Reuters) - Heavy rains across Ukraine's central and southern regions are likely to reduce the yields of wheat and barley by 5 to 10 percent, a senior weather forecaster said on Thursday.
Tetyana Adamenko, who heads the agricultural department of the Ukrainian state meteorological centre, told Reuters that the body, which forecast the harvest of up to 44.5 million tonnes of grain in 2011, would review its crop forecast in mid-July.
Ukraine's grain exports fell to about 12 million tonnes in the 2010/11 from 21.5 Mln 09/10 - UKRAINIAN GRAIN UNION
Jun 30 (Reuters) - KIEV, June 30 (Reuters) - Ukraine's grain exports fell to about 12 million tonnes in the 2010/11 season from 21.5 million in the previous one, Ukrainian Agrarian Confederation (UAC) grain union said on Thursday.
UAC director Serhiy Stoyanov told a news conference that in the June 1-29 period Ukraine had exported 1.34 million tonnes of grain including 600,000 of wheat, 240,000 of barley and 460,000 of maize.
Pakistan Wheat Exports At Near Standstill (Source: CME)
Pakistan's wheat exports have come to a near standstill, with shipments being delayed because the provincial government in Sindh isn't allowing transit of grain from Punjab to the port in Karachi, trading executives said. Pakistan's wheat exports have hit a record 2.0 million metric tons this year, and contracts for shipments of another 200,000 tons to Southeast Asia, the Middle East and Africa are yet to be executed. Pakistan has been filling a crucial gap in the global milling wheat trade earlier this year due to lack of supply from the Black Sea region. The Sindh provincial government is cracking down on exports from Punjab, which it is citing as the reason for rising local prices, they said. Over the last four days, wheat-laden trucks from Punjab haven't been able to reach Karachi port, said Muhammed Najib Balagamwalla, chairman of Karachi-based commodities trading company SeaTrade Group.
Traders said three shipping vessels for loading of around 65,000 tons of wheat are anchored at Karachi port and another for 12,000 tons will arrive soon. Since the trucks carrying wheat are accompanied by valid export permits from authorities in Punjab, the local Sindh government's actions to impound them aren't justified, said a Karachi-based exporter. Sindh government officials couldn't be immediately reached for comment, but according to local media reports, the authorities there have expressed concern that some traders might be using fake permits to export wheat. The Sindh government is against exports of wheat, which it says are creating shortages in some regions, and the matter will now be taken up with the federal government, the local reports said. However, Punjab has permitted exports of wheat from its latest crop, which was harvested in April and May.
Exporters insist that Pakistan still has the potential to export a few hundred thousand tons of wheat in July and August without affecting local supply because of a bumper crop of 24 million tons. Sindh local wheat procurement has fallen short of target by around 500,000 tons because middlemen are paying around PKR100 per 40 kilograms less to the farmers than the state-set intervention price, and then selling the grain to the government for a profit, said SeaTrade's Balagamwalla.
India Monsoon Rains Cover Most Parts (Source: CME)
India's monsoon rains have covered most parts of the country until June 30 and widespread rainfall is expected over the largest sugarcane growing state Uttar Pradesh in the next three to five days, the India Meteorological Department said. Rainfall from the start of the monsoon season until June 30 was 182 millimeters, 11% above the long-term average, the weather office said in its latest update. The department said a slight increase in rainfall activity is also expected in the southern regions, while scattered rains are likely over central parts. Monsoon rain in India was 10% above average between June 23 and June 29, although the level was lower than the previous week's due to weak rains in some eastern and western regions as well as the southern part, the weather office said. The country received 56.6 millimeters of rain during the period, compared with the 50-year average of 51.6 millimeters, the Department said.
There might be a lull in the rains in the first week of July and that may continue until mid-July, said an official with the weather department. Last week, the weather office forecast that monsoon rainfall this year is likely to be 95% of the long-period average, lower than the 98% it projected in April. The weather office also said that rainfall during July and August, which account for more than 60% of the seasonal showers, is expected to be 93% and 94% of the 50-year average, respectively. The June-September monsoon season brings about 70% of India's annual rain and is crucial for summer-sown crops such as rice, sugarcane, pulses, cotton and oilseeds as about 60% of the country's farmland is rain-fed. This year, the monsoon entered India's mainland two to three days early on May 29 through the southern state of Kerala.
IGC Ups 2011-12 World Grain Output Forecast (Source: CME)
The International Grains Council raised its estimate for world corn production by 15 million metric tons only hours after the U.S. Department of Agriculture stunned markets with its own estimates. The IGC now expects farmers to produce 858 million tons of the grain, up from its previous estimate of 843 million tons and 33 million tons higher compared with last year due to improving hopes for crops in the U.S. and China. Boosted by a slight rise in hopes for the world wheat crop to 666 million tons, the London-based organization now forecast global grain output will total 1.81 billion tons in 2011-12, up 17 million tons from its earlier prediction. "Changes include higher than anticipated carry-in stocks of wheat in Russia and an increased U.S. maize crop forecast," said the report. "There are also sizeable upward adjustments in the production and consumption figures for China stemming from the latest official crop data."
The news comes as world grain markets plunged in the wake of the USDA's latest report, released earlier today. European wheat futures crashed to an eight-month low and U.S. corn prices fell to their 30 cents daily trading limit in Chicago after the body stunned the market with an unexpected hike to its estimate for U.S. corn plantings and stocks next year. Yet despite the rise in output, the IGC still expects a deficit in world markets next year as consumption of grains rises 1.4% to 1.82 billion tons due to a 12 million ton rise in the use of feed grain in Europe and China.
Sugar steady below 3-1/2-month highs, coffee firms
LONDON, June 30 (Reuters) - ICE raw sugar futures consolidated near 3-1/2-month highs, supported by lower than expected Brazilian output, in early trading on Thursday, while coffee firmed, buoyed by reports that frost had reached at least two minor coffee regions in Brazil's Parana state.
Sugar futures rose and traded below Wednesday's 3-1/2-month highs, supported by lower-than-expected crush data in Brazil as dealers expressed concerns over a slow start to the harvest in the centre-south.
Brazil coffee dodges frost during a chilly night
BRASILIA, June 29 (Reuters) - Brazil's southeastern coffee regions passed through a chilly night without frost, four cooperatives said on Wednesday, after a freeze the previous night that reached a comparatively small number of farms.
Weather forecaster Somar said temperatures would keep rising in the coming days in the coffee zones of the world's top grower, but fall sharply again next week. It did not expect any frost despite "critical temperatures" expected next week.
Cheap land, less coca key to new Colombia coffee belt
BOGOTA, June 29 (Reuters) - Colombia's traditional coffee belt is losing out to a new group of producers as cheap land, lower labor costs and replacing cocaine by coffee push output growth in some southern states, growers and experts say.
Colombia, the world's top producer of high-quality Arabica beans, has experienced a migration of crops from its traditional "Eje Cafetero" zone as other provinces make gains due increases in the acreage of coffee plantations.
Rain too little to hurt Brazil cane crushing
SAO PAULO, June 29 (Reuters) - Rain early this week over Brazil's center-south was too weak to affect crushing of the new crop -- now in full swing, weather forecaster Somar said on Wednesday.
This should help mills make up for delays earlier in June when rains delayed harvesting of the world's biggest cane crop.
Oil Drops on Signs of China, U.S. Slowdown; IEA and OPEC Supplies Increase (Source: Bloomberg)
Oil declined, trimming the biggest weekly gain in almost three months, as signs of slowing manufacturing growth in China and the U.S., the world’s biggest energy users, stoked speculation fuel demand may falter. Futures slipped as much as 0.7 percent, dropping for the first day in four, after China’s Purchasing Managers’ Index fell to the lowest since February 2009. A report today may show a slowdown in U.S. manufacturing. Prices also slid as the U.S. offered 30.2 million barrels of oil from strategic reserves under an IEA plan to stabilize prices and OPEC boosted supplies.
India plans mining licence to attract foreign investors
NEW DELHI, June 29 (Reuters) - India's draft mining bill will offer a prospecting licence guaranteeing the holder the right to produce 100 percent of any find, as the country seeks to attract foreign money and technology to its underperforming mining sector.
The bill will also create an independent regulator for the sector, Mines Secretary S. Vijay Kumar told Reuters, and should be approved by end-2012.
India plans mining licence to attract foreign investors
NEW DELHI, June 29 (Reuters) - India's draft mining bill will offer a prospecting licence guaranteeing the holder the right to produce 100 percent of any find, as the country seeks to attract foreign money and technology to its underperforming mining sector.
The bill will also create an independent regulator for the sector, Mines Secretary S. Vijay Kumar told Reuters, and should be approved by end-2012.
Japan July-Sept crude steel demand seen up 1.5 pct
TOKYO, June 30 (Reuters) - Japanese demand for crude steel in July-September will be just 1.5 percent higher than the previous three months despite a robust recovery in the manufacturing sector as inventory levels remain high, the trade ministry said on Thursday.
A government survey of domestic steel users, such as carmakers and electric appliance makers, in combination with high inventory levels point to total demand for crude steel of 26.92 million tonnes for the period, the second quarter of the 2011/12 financial year, the ministry said.
Turkish steel prices to increase moderately
ISTANBUL, June 30 (Reuters) - Turkish steel prices will rise in 2011-2012, but are unlikely to hit the record highs hit in 2008, as growing domestic demand and exports to new markets will be offset by a drop in exports to the Middle East and North Africa, a top Turkish industry official said.
"I was expecting steel prices to increase more in 2011 but because of political unrest in the Middle East and North Africa this was delayed," Namik Ekinci, chief executive of steelmaker Ekinciler and chairman of the Turkish steel exporters association told Reuters in an interview.
Malaysia says Lynas rare earths plant must meet conditions
KUALA LUMPUR, June 30 (Reuters) - Malaysia on Thursday asked Australian rare earths miner Lynas Corp to meet recommendations by an independent review panel on its $230-million plant, while the firm reaffirmed a year-end target for the start of production.
The plant will shore up global supplies of rare earths but is a hot political issue for Malaysian Prime Minister Najib Razak's government as the opposition plays up public concern over safety and environmental issues stirred by the plant.
Copper Declines for the First Day in Four After Rallying to Two-Month High (Source: Bloomberg)
Copper in London dropped for the first time in four days, paring a weekly increase, as some investors sold the metal to lock in gains after the metal climbed to a two-month high yesterday. Zinc and lead also declined. Three-month delivery copper on the London Metal Exchange fell as much as 0.6 percent to $9,375 a metric ton, and last traded at $9,383 by 8:04 a.m. Singapore time. The metal, which reached $9,430.15 a ton yesterday, is 3.7 percent higher this week, set for its best week in 12.
METALS-Copper rallies on relief over Greece, end of H1
LONDON, June 30 (Reuters) - Copper rallied to its highest in two months on Thursday, boosted by renewed risk appetite that stemmed from the safe passage of Greece's austerity plan, as well as positioning ahead of the end of the first half.
Three-month copper on the London Metal Exchange traded up a third of a percent at $9,350 at 1010 GMT, compared with a close of $9,320 a tonne on Wednesday. It earlier reached a peak since May 3 at $9,380 a tonne.
PRECIOUS-Gold eases as Greek optimism offsets dollar lift
LONDON, June 30 (Reuters) - Gold buckled under the weight of growing investor appetite for risk on Thursday after Greece looked increasingly likely to push through austerity measures, which offset the potentially bullish impact of a weaker dollar.
The price of gold is on course for an eleventh consecutive quarterly gain during the second three months of 2011.
20110701 1220 Soy Oil & Palm Oil Related News.
Soy Oil chart reading : correction range bound downside biased.
Soybeans (Source: CME)
US soybean futures stumbled, slumping to a 3 1/2 month low on spillover pressure from corn dropping to its daily trading limit. Market also drew pressure from USDA revealing US soybean supply expanded from last year despite strong demand earlier in the year, analysts say. Nonetheless, driving force behind the declines was sharply lower corn prices, with corn's slide attracting broader-based selling across grain futures. CBOT Nov soy ended down 2.2% at $12.94/bushel.
Soybean Meal/Oil (Source: CME)
Soy product futures tumbled, sliding in unison with sharp declines in soybeans. The easing of tight supply fears in soybeans, slower demand and generally negative price sentiment following USDA's surprising acreage and stocks reports pinned prices in negative territory, analysts say. CBOT Dec soyoil dropped 1.5% to 56.15 cents/pound, and Dec soymeal slipped 2.1% to $330.90/short ton.
Palm inches up on technicals, overseas markets
KUALA LUMPUR, Jun 30 (Reuters) - Malaysian palm oil futures rose 0.3 percent on Thursday, buoyed by firmer overseas markets and technical buying, although lower-than-expected exports data capped gains.
"Technically palm oil market was oversold and some buyers wanted to pull the prices back up, but the supply-demand fundamental is still very weak to give support," said a trader in Kuala Lumpur.
US report will tell if crop sowings shrink in rain
WASHINGTON, June 29 (Reuters) - Bad weather and floods wiped out a small but possibly key part of U.S. grain and soybean crops in a year when supplies are already tight, a government survey of growers was expected to show on Thursday,
Adverse weather forced a downturn in plantings and also will lead to a larger-than-usual abandonment of fields due to poor crop development, creating additional uncertainty, said traders ahead of an annual report from the Agriculture Department on crop sowings.
New Britain Palm Oil eyes 20 pct output jump in 2011
JAKARTA, June 30 (Reuters) - Improving farming techniques at planter New Britain Palm Oil (NBPO) is likely to result in output jumping by about 20 percent this year to more than 500,000 tonnes, the company's executive director said on Thursday.
Production at the Australiasian palm oil producer was 479,000 tonnes last year, Alan Chaytor told Reuters.
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