20110927 1823 FCPO EOD Daily Chart Study.

FCPO closed : 2948, changed : +43 points, volume : lower.
Bollinger band reading : pullback correction little downside biased.
MACD Histrogram : falling lower, seller in control.
Support : 2920, 2900, 2850, 2800 level.
Resistance : 2950, 2970, 3020, 3050 level.
Comment :
FCPO closed recorded gains with lesser volume changed hand. Overnight soy oil ended little lower and currently rebounding higher while crude oil also recovering higher after recent falls.
Recovering global equity market plus oversold broad commodities prices lead traders to cover short position locking in partial profit pushed price to soar higher. News wise, Reuters average survey shows that India's 2011/12 edible oil imports seen rising up 5.2% to 8.84 million tonnes as slow production supply failed to meet rising demand.
Daily chart formed an up doji bar candle with long lower shadow closed little above lower Bollinger band level after market opened higher, edge little upwards and slide down lower tested support level followed by after lunch session soaring higher tested resistance level and closed near the high of the day.
Technical reading revised to suggesting a pullback correction little downside biased market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110927 1757 FKLI EOD Daily Chart Study.

FKLI closed : 1362, changed : +33.5 points, volume : higher.
Bollinger band reading : pullback correction downside biased.
MACD Histrogram : turned upward, seller taking profit.
Support : 1360, 1350, 1345, 1337 level.
Resistance : 1375, 1385, 1395, 1405 level.
Comment :
FKLI closed rebounded higher snapping back most of yesterday losses with rising high volume transacted doing 2 points discount compare to cash market that also closed recovered higher. Overnight U.S. market closed substantially higher and Asia markets ended mostly recorded gains while European markets currently trading higher.
Investors confident and hope seems on the rise as a result of increased effort by European leader to solve the region debt crisis. Asia market recovered after yesterday oversold condition. Back home, heavy weight counters also recovered some of yesterday losses resulted cash market and FKLI to recovered upward.
Daily chart formed an up bar candle closed above lower Bollinger band level after market opened higher and climb upwards all the way breaking few resistance levels before eased slightly lower to closed near the high of the day.
Chart study switch to suggesting a pullback correction downside biased market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with moderate cut loss and profit target.

20110927 1700 Regional Markets EOD Daily Chart Study.

DJIA chart reading : side way range bound little downside biased.

 Hang Seng chart reading :  pullback correction downside biased.

KLCI chart reading : pullback correction downside biased.

20110927 1629 Global Market & Commodities Related News.

Asia stocks rebound on hopes for euro zone plan (Bloomberg)
SINGAPORE, Sept 27 (Reuters) - Asian shares rebounded and the euro clung to gains on hopes that euro zone officials will act to corral Greece's debt woes and prevent another full-blown banking crisis.
"It's a knee-jerk reaction to the world failing to come to an end last night," said Richard Morrow, director at Melbourne-based private client stockbroker E.L. & C. Baillieu. "It is a reversal and I don't see it lasting. The market has been as gloomy as I can remember since the last days of 2008."

European Stocks Rally for Third Day (Bloomberg)
European stocks climbed for a third straight day as policy makers increased efforts to contain the region’s sovereign-debt crisis. Asian shares and U.S. index futures advanced. BNP Paribas (BNP) SA and Societe Generale SA led a rally in banks, soaring more than 8 percent. MAN SE (MAN) gained 6.7 percent as European Union regulators cleared Volkswagen AG (VOW)’s takeover of the truckmaker. Novartis AG (NOVN), Europe’s second-biggest drugmaker by sales, rose 1.8 percent after its Seebri treatment showed positive results in two studies. The benchmark Stoxx Europe 600 Index climbed 2.1 percent to 224.79 at 8:51 a.m. in London. The gauge has surged 4.7 percent over the past three trading days after falling to a two-year low on Sept. 22. That’s the biggest three-day gain this month.

U.S. Senate Approves Bill to Avoid Government Shutdown, Fund Disaster Aid (Bloomberg)
The U.S. Senate reached a bipartisan deal on stopgap spending designed to avoid a government shutdown and defuse a fight over aid to victims of hurricanes, tornadoes and other natural disasters. Senators approved legislation yesterday, 79-12, to finance the government through Nov. 18, a measure including $2.65 billion for federal disaster assistance. With the expectation that the House would consent, senators also passed on a voice vote a measure to tide the government over through Oct. 4 so that the House, in recess this week, can consider the longer funding measure. The 2011 fiscal year ends on Sept. 30, and the House can approve the short-term bill by unanimous consent without bringing members back to Washington.

China Stock Index Rises From 14-Month Low on Easing Debt Concern (Bloomberg)
China’s benchmark stock index rose, climbing from its lowest close in 14 months, on speculation European policy makers will act to prevent the region’s debt crisis from worsening. Ping An Insurance (Group) Co. advanced 1.8 percent after the nation’s second-biggest insurer said its main shareholders haven’t reduced their stakes. China Shenhua Energy Co. and Jiangxi Copper Co., the nation’s biggest producers of coal and copper, gained as raw-material prices rebounded. Property developer Gemdale Corp. (600383) dropped to the lowest level in more than two years after Standard & Poor’s said Chinese developers face an “increasingly severe” credit outlook. “The support measures from the European Central Bank are quite crucial and ensure that there won’t be any debt default in the near term,” said Li Jun, a strategist at Central China Securities Co. in Shanghai.

FOREX-Euro wins reprieve on hopes for enhanced bailout fund
TOKYO, Sept 27 (Reuters) - The euro crawled up from eight-month lows  as a report that Europe is considering beefing up its bailout fund prompted short-covering, and it could extend its rebound in the very near term given traders' overwhelmingly short positions in the currency.
"Markets are getting more confident around some action plan in Europe, which is positive, but on the other side, markets are also looking for more policy easing from the ECB, which is negative," said Greg


Wheat, corn up 1 pct on supply as drought persists
SINGAPORE, Sept 27 (Reuters) - U.S. wheat and corn futures rose more than 1 percent extending gains amid support from a weaker dollar and forecasts for tightening supplies as drought affects planting.
"The drought that has existed in the U.S. in the past 12 months is hampering the seeding programme for wheat for 2012," said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia in Sydney.

Thai government cancels rice sale to Indonesia
BANGKOK, Sept 27 (Reuters) - Thailand's government has cancelled the sale of 300,000 tonnes of rice to Indonesia agreed under the previous administration that left office last month, although Indonesia's state procurement body said on Tuesday it had not been informed.
"The Public Warehouse Organisation signed an MOU in the middle of August, which would have become effective when the minister signed the deal, but I didn't sign," Thai Commerce Minister Kittirat Na Ranong told reporters, referring to the body that looks after government stockpiles.

Kazakh Oct-Dec grain exports seen at 2.5 mln T -union
ALMATY, Sept 27 (Reuters) - Kazakhstan should be able to export at least 2.5 million tonnes of grain in the three months from October to December 2011, the head of the country's grain industry lobby said on Tuesday.
Nurlan Tleubayev, president of the Grain Union of Kazakhstan, told a government meeting that the country should be able to export between 8 million and 9 million tonnes in each of the next two seasons, even if next year's crop were to fall below the bumper harvest expected in 2011.

W.Canada harvest 84 pct done, ahead of norm
WINNIPEG, Manitoba, Sept 26 (Reuters) - Western Canadian farmers have harvested 84 percent of their crops overall, well ahead of normal, the Canadian Wheat Board said on Monday.
Progress is ahead of the usual pace of 78 percent finished at this time of year, but rain early last week held back some farmers, said Bruce Burnett, director of weather and market analysis for the Wheat Board.

Rains may bring relief to parched Argentine farms
BUENOS AIRES, Sept 26 (Reuters) - Rains forecast to sweep into much of Argentina's farming belt from Wednesday should bring relief to thirsty wheat crops and allow corn seeding to pick up its pace, a weather specialist said on Monday.
Concern is growing over dryness in Argentina, which is being affected by the La Nina weather phenomenon for a second straight year, although forecasters do not expect its impact to be as severe this season.

Algeria's Jan-Aug grain imports up 37 percent
Sept 26 (Reuters) - Algeria's soft and durum wheat imports stood at 5.18 million tonnes during the first eight months of 2011,customs data showed, a 36.7 percent rise on the same period last year.
Soft wheat purchases rose to 4.1 million tonnes from 2.62 million tonnes in the January-August period of 2010, while durum wheat imports reached 1.28 million tonnes, up from 1.17 million tonnes.

Olam's long-term commods outlook bullish; cautious on cocoa
SINGAPORE, Sept 26 (Reuters) - Singapore-listed Olam International said on Monday the long-term outlook for most agricultural commodities was still bright despite the threat of a slowdown in demand triggered by economic woes, but weak fundamentals could work against cocoa.
Gold and copper suffered their biggest slump since the 2008 financial crisis as another brutal sell-off hit commodities on growing doubts Europe may be unable to prevent its debt crisis from dragging down the global economy.

Brent crude rises above $105 on euro debt action, dollar
SINGAPORE, Sept 27 (Reuters) - Brent crude rose above $105 as concerns over Europe's debt crisis eased temporarily and a weaker U.S. dollar sparked buying of dollar-denominated assets.
"Clarity on the euro zone plan is still key, crude prices are swinging back and forth depending on what comments come out of Europe," said Victor Say, an analyst with Informa Global Markets in Singapore.

Base metals rebound after three sessions of rout
SHANGHAI, Sept 27 (Reuters) - Shanghai base metals contracts rebounded led by gains in Asian equities, on hopes that euro zone officials will act to stem Greece's debt woes and prevent another full-blown global financial crisis.
"The shorts are starting to offset their positions today. Given how hard prices fell yesterday, most of them have earned enough margins to do so profitably," said Jinrui Futures analyst Zhao Kai.

Blackout cost Chile's Codelco 1,413 T copper
SANTIAGO, Sept 26 (Reuters) - A massive power blackout on Saturday that hit a clutch of mines and plunged millions of Chileans into darkness cost state copper giant Codelco 1,413 tonnes of the metal in lost output, the company said on Monday.
Codelco said the lost output included 670 tonnes at its Andina division, 710 tonnes at its Teniente division and 33 tonnes at its El Salvador division. Codelco's ventanas smelter was also impacted.

Indonesia smelters to ban tin ingot exports Oct. 1
PANGKAL PINANG, Indonesia, Sept 27 (Reuters) - Smelters in Indonesia's main tin-producing region of Bangka island have agreed to impose a full export ban on tin ingot from Oct. 1 until global prices recover, an industry group said on Tuesday.
Johan Murod, general secretary at the Indonesian Tin Industry Association, told Reuters after a meeting of smelter owners on Bangka that exports would resume only if tin prices , now around $20,000 per tonne, rise above $25,000.

Arcelomittal to cut back Luxembourg steel production
LONDON, Sept 26 (Reuters) - ArcelorMittal , the world's largest steelmaker, may temporarily halt melting steel and cut some steel re-rolling lines at its Schifflange and Rodange plants, in Luxembourg, in the face of the worsening economic situation.
The steelmaker had announced earlier this month that it will shut two blast furnaces, one at its plant in Eisenh&#252ttenstadt, Germany, and one at its Florange plant in France, due to weaker steel demand in Europe.

Gold stages comeback with aid of weak dollar
SINGAPORE, Sept 27 (Reuters) - Spot gold rallied 1 percent snapping four consecutive sessions of losses as a weaker dollar helped battered commodities stage a comeback.
"In the last couple of days the market over-reacted to the situation in the euro zone and the U.S.," said Cameron Alexander, senior metals analyst at GFMS, a unit of Thomson Reuters.

Romania sees chance for gold, copper mine investment
BUCHAREST, Sept 26 (Reuters) - Romania has decided now is the time to revive the mining of its abundant but neglected gold and copper resources, especially as high metals prices mean it can demand bigger royalty fees and still attract vital Western investment.
The minerals drive includes the launch of the continent's biggest open cast gold mine, Rosia Montana, by Canada's Gabriel Resources and the placing into private hands of 60 percent of Romania's copper reserves.

Hard-hit gold bulls not yet out for the count
LONDON, Sept 26 (Reuters) - Gold's toppling from record highs, culminating in Monday's unprecedented $120 price plunge, has investors asking whether a decade-long bull run is over. History would suggest that while gold has taken a beating, it is far from down and out.
Monday's tumble to around $1,535 an ounce dragged prices 20 percent below the record $1,920 reached this month. But since its rise from just over $250 in early 2001, gold has bounced back from bigger drops, having fallen 25 percent between May and June 2006, and 27 percent in October 2008.

METALS-Base metals rebound after three sessions of rout
SHANGHAI, Sept 27 (Reuters) - Shanghai base metals contracts rebounded, led by gains in Asian equities, on hopes that euro zone officials will act to stem Greece's debt woes and prevent another full-blown global financial crisis.  
"The shorts are starting to offset their positions today. Given how hard prices fell yesterday, most of them have earned enough margins to do so profitably," said Jinrui Futures analyst Zhao Kai.

PRECIOUS-Gold stages comeback with aid of weak dollar
SINGAPORE, Sept 27 (Reuters) - Spot gold rallied 1 percent , snapping four consecutive sessions of losses as a weaker dollar helped battered commodities stage a comeback.
"In the last couple of days the market over-reacted to the situation in the euro zone and the U.S.," said Cameron Alexander, senior metals analyst at GFMS, a unit of Thomson Reuters.

20110927 1306 Global Market & Commodities Related News.

GLOBAL MARKETS-Asia stocks gain on hopes for euro zone plan
SINGAPORE, Sept 27 (Reuters) - Asian shares rose on Tuesday on hopes that euro zone officials will act to corral Greece's debt woes and prevent another full-blown banking crisis, but the euro failed to hold on to all its gains.
"Markets are getting more confident around some action plan in Europe, which is positive, but on the other side, markets are also looking for more policy easing from the ECB, which is negative," said Greg Gibbs, currency strategist at RBS in Sydney.

Asia Stocks Rebound From Lowest Since 2010 as Europe Seeks Debt Solution
Asian stocks rebounded from their lowest level since May 2010 after two days of gains in U.S. equities amid optimism that European leaders are closer to agreeing on ways to tame the region’s credit crisis. HSBC Holdings Plc (HSBA), Europe’s No.1 lender by market value, gained 1.9 percent in Hong Kong after a report the European Central Bank may restart covered-bond purchases and take further measures to ease monetary conditions. Canon Inc. (7751), a camera maker which depends on Europe for about a third of its sales, rose 2.5 percent in Tokyo. BHP Billiton Ltd. (BHP), the world’s biggest mining company, jumped 3 percent in Sydney after crude and copper prices advanced.
“There’s no doubt the markets are very oversold,” said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which has almost $100 billion under management. “There’s a good potential for a bounce and it then becomes about what follow-through reaction we see from Europe. The real issue is whether it’s a durable bounce or whether it’s a dead cat bounce.”

Record Dividends Lure Morgan Stanley to Asia as Stock Losses Rival Europe
Investors are getting paid more than ever to hold Asian stocks compared with the rest of the world as shares in the region fall almost as much as those in Germany and France. Equity declines, including last week’s 11 percent drop in the MSCI China Index, have pushed up dividend yields as much as 37 percent on Australia’s S&P/ASX 200 and 86 percent for the Chinese gauge, according to data compiled by Bloomberg. That helped send the MSCI Asia Pacific Index’s payout to 3.2 percent, exceeding the MSCI All-Country World Index by the most since at least 1995, the data show. Asian profits may rise 32 percent in the next two years, faster than the rest of the world, helping fund dividends and providing a margin of safety for investors betting the stocks will rebound. While bears say the region will prove just as risky as Europe and the U.S. should growth stall, Morgan Stanley is recommending companies that return cash to owners at a higher rate than U.S. Treasury bonds.

Stocks in U.S. Advance as Dow Average Caps Biggest Increase in One Month
U.S. stocks advanced, giving the Dow Jones Industrial Average its biggest increase in a month, amid speculation that European policy makers will act to prevent the region’s debt crisis from getting worse. Bank of America Corp. and JPMorgan Chase & Co. (JPM) rose more than 4.5 percent as the European Central Bank was said to consider restarting covered-bond purchases along with further measures to ease monetary conditions. Berkshire Hathaway Inc. (BRK/A) Class B shares added 8.6 percent as the company plans a stock buyback. Boeing Co. (BA) rallied 4.2 percent as the delivery of the 787 Dreamliner ended more than three years of delays. The Standard & Poor’s 500 Index added 2.3 percent to 1,162.95 at 4 p.m. in New York. The Dow average climbed 272.38 points, or 2.5 percent, to 11,043.86, rebounding from the biggest weekly decline since October 2008.

Record Tire Sales Rally Rubber on China-Japan Trend
Record demand for autos in China, the world’s largest market, and the biggest increase in Japanese vehicle production in three decades means tiremakers will make the most sales ever, reigniting a rally in rubber prices. China’s vehicle sales exceeded the combined global total of General Motors Co. and Volkswagen AG, the world’s top two automakers, in the first half, and Japanese output more than doubled in three months as factories reopened after the March earthquake. Tire demand will shrink rubber stockpiles to 12 percent of use in 2012, a four-year low, estimates Citigroup Inc. Prices may jump 18 percent to $5 a kilogram (2.2 pounds) by Dec. 31, a Bloomberg survey of 15 analysts and traders shows.
Expanding vehicle sales in China and other emerging markets will compensate for weakening demand in developed economies roiled by debt crises, giving carmakers their best year ever, according to JD Power & Associates, a research company. Bridgestone Corp. (5108), the biggest tiremaker, has more orders than it can handle, eroding rubber inventories just as rains delay harvesting in Thailand, the largest producer.

Rubber Surges Most in Six Months as Europe Seeks Solution to Debt Crisis
Rubber surged by the most in six months on expectation European leaders will act to prevent the region’s sovereign-debt crisis from getting worse, and amid speculation the German economy may avoid recession. February-delivery rubber jumped as much as 6.9 percent, the biggest gain since March 18, before trading at 319.8 yen a kilogram ($4,208 a metric ton) on the Tokyo Commodity Exchange at 11:14 a.m. local time. The March-delivery contract, listed on the bourse today, climbed to 325 yen after opening at 318.7 yen. Futures recovered from a one-year low reached yesterday after a euro-region central bank official said the European Central Bank is likely to debate restarting covered-bond purchases and may discuss interest-rate cuts to ease funding strains. Asian stocks extended a global rally while oil advanced for a second day, boosting the appeal of natural rubber.

Blast destroys Egypt gas pipeline to Israel, Jordan
CAIRO, Sept 27 (Reuters) - An explosion destroyed an Egyptian pipeline in Sinai that supplies Israel and Jordan with gas on Tuesday, security sources and witnesses said.
The security sources said the explosion happened west of the city of al-Arish. Witnesses said 15-metre high flames could be seen rising from the pipeline. The cause of the blast was not immediately known.

Brent crude near flat eyeing euro zone hopes
NEW YORK, Sept 26 (Reuters) - Oil prices were little changed in volatile trading on Monday as investors gauged skepticism about Europe's ability to tackle its debt crisis and optimism about efforts to deal with the region's problems.
"The market has come down a long way and most of the bad news seems now to be priced in," said Christopher Bellew, oil broker at Jefferies Bache. "Equities have stabilized."

NYMEX-Natural gas ends up on technical bounce, weather
NEW YORK, Sept 26 (Reuters) - Front-month U.S. natural gas futures ended higher on Monday after four straight losing sessions, backed by prospects for chillier weather next week and some technical buying after four straight losing sessions.
"We've been testing the lows, and everyone was expecting some (short) covering to happen, but we're moving into the (autumn) shoulder season, so demand is off and production is at record levels," said Eric Bickel, analyst at Summit Energy.

Euro Coal-Prices dip $1.50/T with commodities
LONDON, Sept 26 (Reuters) - Prompt physical coal prices continued to drift lower on Monday after steady falls for most of last week, due to a lack of end-user buying interest in Europe and Asian buyers waiting for lower prices.
"There's been quite a lot of spot activity in the Richards Bay market, especially for October - time's running out if you've got cargoes to move," one European trader said.

COMMODITIES-Crops up, ending 3 days of broad fall; gold down
NEW YORK, Sept 26 (Reuters) - Commodities snapped a three-day losing streak as oil ended flat on Monday. Agricultural markets rose, but metals extended their slide as gold fell to 2-1/2 month lows on record volatility.
"The liquidation, whether forced or self-determined, has yet to run its final course," said Gartman, whose comments on gold are closely followed by the market.

20110927 1049 Global Economic Related News.

Thailand: Thai central bank chief signals less pressure for rate rise on growth risk
Thailand’s central bank may cut its economic growth projections as the global recovery falters, Governor Prasarn Trairatvorakul said, signaling there may be less scope for interest rates to rise further. Stocks fell the most in almost three years. Inflation expectations aren’t likely to increase and the Bank of Thailand has “closed the gap somewhat” on normalizing borrowing costs, Prasarn said in an interview in Washington on 24 Sept. The bank is due to unveil forecasts next month. (Bloomberg)

India: Inflation in India has been ‘fairly stubborn,’ RBI governor Subbarao says
India’s inflation rate has been “fairly stubborn” and price pressures beyond a threshold are unacceptable, central bank Governor Duvvuri Subbarao said. “Inflation has been fairly stubborn,” Subbarao said in New York today. “Above a threshold, you can’t accept high inflation to have higher growth,” he said, adding that the price-rise limit is as much as 6% for the nation. The Reserve Bank of India on 16 Sept. extended its record- interest rate increases to tame the fastest inflation among the so-called BRICS economies. India’s benchmark wholesale-price inflation accelerated to a 13-month high of 9.78% in August from a year earlier. Higher food and fuel costs and weakness in the rupee may keep boosting price pressures. Subbarao today reiterated the upward pressure on prices. A rate of “4 to 6% is the short term comfort range” for inflation, he said. “We expect inflation to slow by March 2012, but more slowly than initially expected.” (Bloomberg)

EU: ECB said to consider new covered-bond purchases to ease tensions
European Central Bank policy makers are likely to next week debate restarting their covered-bond purchases along with further measures to ease monetary conditions, a euro-region central bank official said. The reintroduction of 12-month loans to banks will also be discussed at the ECB’s 6 Oct. policy meeting, said the person, who spoke on condition of anonymity because the information is confidential. Interest rate cuts are likely to be discussed, though they are not on the current agenda, the official said. The euro rose half a cent against the dollar to as high as USD1.3543. Yield spreads between covered bonds and interest-rate swaps tightened. A spokesman for the Frankfurt-based ECB declined to comment. (Bloomberg)

US: Fed to purchase bonds 13 times a month, sell six times in operation twist
The Federal Reserve said it will buy Treasury securities 13 times a month and sell its holdings of U.S. government debt six times under its plan to lower borrowing costs known as Operation Twist. The Fed will sell USD8bn to USD9bn of nominal Treasuries five times a month per operation and USD1bn to USD1.5bn of Treasury Inflation Protected Securities, or TIPS, in one operation, according to a statement today from the Federal Reserve Bank of New York. The Fed will buy Treasuries 12 times a month and TIPS once a month. The Federal Open Market Committee said last week that it would replace USD400bn of short-term debt in its portfolio with longer-term Treasuries in an effort to further reduce borrowing costs and counter rising risks of a recession. The so- called Operation Twist drew three dissents as Chairman Ben S. Bernanke struggled to find consensus to help an economy plagued by 9.1% unemployment. (Bloomberg)

US stocks and commodities gain on Europe optimism
Stocks rallied, rebounding from last week’s decline, and Treasuries retreated as European officials discussed plans to tame the region’s debt crisis. Commodities reversed losses and the Dollar Index retreated. The S&P 500 Index jumped 2.3% to 1,162.95 while The S&P GSCI Index of commodities gained 0.2% as oil snapped a three-day slump. The Dow Jones Industrial Average gained 2.5% to 11,043.86. The European Central Bank is likely to debate restarting covered-bond purchases and may discuss interest-rate cuts to ease funding strains, a euro-region central bank official said. (Bloomberg)

20110927 1047 Malaysia Corporate Related News.

BRDB will sell prized assets via open tender
Bandar Raya Developments (BRDB) has ceased all negotiations to sell its prized assets to its major shareholder, Ambang Sehati SB, and is now opting instead to dispose of them via an open tender. Both BRDB and Ambang Sehati had mutually agreed to call off the latter’s offer to acquire BR Property Holdings SB, which owns Bangsar Shopping Centre, Menara BRDB, CapSquare Retail Centre and Permas Jusco Mall, for RM914m. However, Ambang Sehati will be invited to participate in the tender. (StarBiz)

AirAsia, MAS to unveil strategic areas of cooperation soon
AirAsia and MAS are deliberating on strategic areas of cooperation and will reveal the details soon, said AirAsia group CEO Tan Sri Tony Fernandes. Fernandes said AirAsia and MAS’ volume combined could translate into a mega maintenance, repair and overhaul (MRO) entity in the region. Both airlines’ pilot training schools could join hands to make Malaysia a leading regional aviation training hub. The cargo and logistics segment is deemed a strategic area in which MAS, which already has an established fleet of cargo planes, can leverage on AirAsia’s short-haul network, according to Fernandes. (Financial Daily)

Multipurpose sells building to MCA, expecting gain of RM200m
Multipurpose Holdings will dispose Menara Multipurpose to MCA for RM375m, from which it expects a gain of RM199.6m. The company has entered into a sale and purchase agreement with MCA to sell the building along with 414 carpark bays. The move forms part of Multipurpose’s asset rationalization exercise to dispose its non-core assets. Multipurpose acquired the building for RM272.1m between 1993 and 1996 and the car bays in Capital Square for RM17m in 2004. (Malaysian Reserve)

Aikbee Resources receives takeover offer
Logging and sawmilling company Aikbee Resources has received a notice of conditional takeover from a group of joint offerors, made up from its subsidiaries and shareholders, to take the company private in view of having greater control and flexibility in charting the strategic direction of the company. The offer is RM1 per share, representing a 16.3% premium to the stock’s last trading price of RM0.86 but is below the company’s net asset per share of RM1.49. Aikbee has not registered any profits since FY04. It has a market capitalization of RM43m. (Financial Daily)

20110927 1020 Global Market Related News.

Asia Stocks Rebound From Lowest Since 2010 as Europe Seeks Debt Solution (Source: Bloomberg)
Asian stocks rebounded from their lowest level since May 2010 after two days of gains in U.S. equities amid optimism that European leaders may be closer to agreeing ways to tame the region’s credit crisis. Sumitomo Mitsui Financial Group Inc. (8316), Japan’s No. 2 bank by market value, advanced 3 percent in Tokyo after the European Central Bank was said to be considering restarting covered-bond purchases and further measures to ease monetary conditions. Canon Inc. (7751), the camera maker which depends on Europe for about a third of its sales, rose 1.9 percent. BHP Billiton Ltd. (BHP), the world’s biggest mining company and Australia’s largest oil producer, jumped 2.3 percent in Sydney after crude and copper prices advanced.
“There’s no doubt the markets are very oversold,” said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which has almost $100 billion under management. “There’s a good potential for a bounce and it then becomes about what follow-through reaction we see from Europe. The real issue is whether it’s a durable bounce or whether it’s a dead cat bounce.”

Stocks in U.S. Advance as Dow Average Caps Biggest Increase in One Month (Source: Bloomberg)
U.S. stocks advanced, giving the Dow Jones Industrial Average its biggest increase in a month, amid speculation that European policy makers will act to prevent the region’s debt crisis from getting worse. Bank of America Corp. and JPMorgan Chase & Co. (JPM) rose more than 4.5 percent as the European Central Bank was said to consider restarting covered-bond purchases along with further measures to ease monetary conditions. Berkshire Hathaway Inc. (BRK/A) Class B shares added 8.6 percent as the company plans a stock buyback. Boeing Co. (BA) rallied 4.2 percent as the delivery of the 787 Dreamliner ended more than three years of delays. The Standard & Poor’s 500 Index added 2.3 percent to 1,162.95 at 4 p.m. in New York. The Dow average climbed 272.38 points, or 2.5 percent, to 11,043.86, rebounding from the biggest weekly decline since October 2008.

European Stocks Climb as Banks, Insurers Rally; U.S. Futures Pare Losses (Source: Bloomberg)
European stocks rose for a second day as foreign governments and central banks urged policy makers in Europe to intensify efforts to contain the region’s debt crisis following meetings with the International Monetary Fund. Allianz SE (ALV) and Axa SA (CS), Europe’s biggest insurers, jumped the most in more than a year. Deutsche Bank AG led lenders higher amid speculation the European Central Bank may cut interest rates and as executives called for a U.S.-style Troubled Asset Relief Program in Europe. Fresnillo Plc (FRES) tumbled 6.9 percent as silver had the biggest three-day drop since 1980. The benchmark Stoxx Europe 600 Index advanced 1.9 percent to 220.28 at the 4:30 p.m. close in London, rebounding from an earlier loss of 1.4 percent, as the IMF said that euro-area countries will do whatever is necessary to end the region’s government-debt crisis.

Japan’s Nikkei 225 Rebounds From Two-Year Low on Signs of Europe Action (Source: Bloomberg)
Japanese stocks gained, with the Nikkei 225 (NKY) Stock Average rebounding from its lowest level since April 2009, on expectation European leaders will act to prevent the region’s sovereign-debt crisis from getting worse. Sumitomo Mitsui Financial Group Inc. (8316) advanced 2.1 percent after European and U.S. lenders surged yesterday following a report that the European Central Bank may resume buying some loan-backed bonds. Canon Inc. (7751), a camera maker that depends on Europe for about a third of its sales, climbed 2.1 percent. Inpex Corp. (1605), Japan’s largest oil explorer by market value, gained 2 percent after crude prices increased. “Speculation that Europe may take additional monetary easing measures will likely boost shares” said Fumiyuki Nakanishi, a strategist at Tokyo-based SMBC Friend Securities Co. “A rebound in stocks will be limited as U.S. employment and other significant economic reports are scheduled to be released next week.”

Geithner Predicts Europe Will Move With More Force (Source: Bloomberg)
U.S. Treasury Secretary Timothy F. Geithner predicted that European governments will step up their response to their region’s debt crisis after a chiding from counterparts around the world. “They heard from everybody around the world” at meetings in Washington last week, Geithner said in an interview today on ABC television’s “World News With Diane Sawyer” program. “This was really hurting -- starting to hurt growth everywhere, in countries as far away as China, Brazil and India, Korea. And they heard the same message from us they heard from everybody else, which is it’s time to move.” Speculation that policy makers will intensify their attempt to contain a crisis that threatens to send Greece into default and undermine prospects for the survival of the euro in its current form spurred a gain in stocks. European Central Bank officials have indicated they will consider expanding liquidity provisions when they meet Oct. 6.

Sales of New U.S. Homes Fell to Six-Month Low (Source: Bloomberg)
Purchases of new houses in the U.S. declined in August to a six-month low as the biggest drop in prices in two years failed to lure buyers away from even less expensive distressed properties. Sales, tabulated when contracts are signed, dropped 2.3 percent to a 295,000 annual pace, figures from the Commerce Department showed today in Washington. The median estimate of 73 economists in a Bloomberg News survey called for a decline to 293,000. The median price slumped 7.7 percent from August 2010, the steepest 12-month drop since July 2009. Foreclosure-driven price decreases for previously owned homes may keep attracting investors away from new properties, hurting builders like Lennar Corp. (LEN) Limited access to credit, rising unemployment and waning consumer confidence also signal the industry that helped precipitate the recession will take time to find its footing.

Two Fed Officials Voice Skepticism on Allowing Higher Inflation (Source: Bloomberg)
Two Federal Reserve policy makers backed the central bank’s record stimulus while signaling they would be skeptical of any plan to tolerate higher inflation as a tool to boost economic growth. Fed Governor Sarah Bloom Raskin said today in Washington that the central bank’s use of tools has been “completely appropriate” and that she would be “quite leery” of allowing higher inflation or price expectations in an attempt to lower real interest rates. St. Louis Fed President James Bullard said in New York that faster inflation won’t reduce the housing glut; at the same time, he said that “monetary policy is ultra-loose right now, and appropriately so.” The comments suggest that policy makers, including Fed Chairman Ben S. Bernanke, would have difficulty agreeing on adopting a specific inflation level as a condition for keeping interest rates near zero. Only Chicago Fed President Charles Evans has publicly supported the idea of allowing price increases faster than 2 percent annually as a way to lower unemployment.

Fed to Purchase Bonds 13 Times a Month, Sell Six Times in Operation Twist (Source: Bloomberg)
The Federal Reserve said it will buy Treasury securities 13 times a month and sell its holdings of U.S. government debt six times under its plan to lower borrowing costs known as Operation Twist. The Fed will sell $8 billion to $9 billion of nominal Treasuries five times a month per operation and $1 billion to $1.5 billion of Treasury Inflation Protected Securities, or TIPS, in one operation, according to a statement today from the Federal Reserve Bank of New York. The Fed will buy Treasuries 12 times a month and TIPS once a month. The Federal Open Market Committee said last week that it would replace $400 billion of short-term debt in its portfolio with longer-term Treasuries in an effort to further reduce borrowing costs and counter rising risks of a recession. The so- called Operation Twist drew three dissents as Chairman Ben S. Bernanke struggled to find consensus to help an economy plagued by 9.1 percent unemployment.

Treasuries Snap Two-Day Slide on Speculation Data to Show Home Prices Fell (Source: Bloomberg)
Treasuries rose, snapping their steepest two-day loss in a month, before an industry report that may show U.S. home prices declined in July. Two-year yields were the highest in a month as the U.S. prepared to sell $35 billion of the securities today, the first of three note auctions this week totaling $99 billion. The S&P/Case-Shiller index of property values in 20 cities fell 4.4 percent from July 2010, the 10th-straight year-on-year drop, according to the median forecast of economists surveyed by Bloomberg News. “The market needs time to confirm an improvement in economic conditions before yields can rise,” said Kei Katayama at Daiwa SB Investments Ltd. in Tokyo. “The economic figures are mixed.” Katayama helps manage the equivalent of $64.9 billion including Asia’s second-biggest bond fund as leader of the foreign fixed-income group.

ECB to Shun Managing Euro Region’s Bailout Fund, Halpenny Says: Tom Keene (Source: Bloomberg)
European Central Bank policy makers are likely to next week debate restarting their covered-bond purchases along with further measures to ease monetary conditions, a euro-region central bank official said. The reintroduction of 12-month loans to banks will also be discussed at the ECB’s Oct. 6 policy meeting, said the person, who spoke on condition of anonymity because the information is confidential. Interest-rate cuts are likely to be discussed, though they are not on the current agenda, the official said. The euro rose half a cent against the dollar to as high as $1.3543. Yield spreads between covered bonds and interest-rate swaps tightened. A spokesman for the Frankfurt-based ECB declined to comment.

World Finance Chiefs’ Patience Running Out as Pimco Sees Europe Recession (Source: Bloomberg)
Pacific Investment Management Co., which runs the world’s biggest bond fund, is forecasting that advanced economies will stall over the next year as Europe slides into a recession, underscoring mounting investor concern about the global economic outlook. There will be little-to-no economic growth in industrial nations in the coming 12 months as Europe’s economy shrinks by 1 percent to 2 percent and the U.S. stagnates, said Mohamed El- Erian, chief executive officer of Newport Beach, California- based Pimco. That will leave worldwide expansion at about 2.5 percent, less than the 4 percent forecast by the International Monetary Fund this year and next. Such gloomy sentiment dominated weekend talks of policy makers, investors and bankers in Washington, where the IMF and World Bank held their annual meetings. The Dow Jones Industrial Average suffered its biggest loss since 2008 last week as the Federal Reserve said risks to the U.S. economy had increased and Europe’s debt crisis went unresolved.

France’s Pre-Louis XIV Government System Caps Debt Cost Amid Euro Turmoil (Source: Bloomberg)
France is paying less to borrow now than at the start of the year, aided by a political consensus on deficit reduction and a centralized system of government dating back before Louis XIV’s reign. As investors seek shelter from the political and debt turmoil in markets such as Greece and Italy, yields on 10-year French government bonds have fallen to 2.6 percent, down from 3.4 percent at the beginning of January and less than half the post-euro-creation high of 5.76 percent on Jan. 18, 2000. “For centuries the French state has been a predatory one,” said Michel Martinez, an economist at Societe Generale in Paris. “It’s not a country where there is implementation risk. When the government decides to do something, it happens.”

Euro Trading Above Average Since 1999 Debut Undermines Calls for Collapse (Source: Bloomberg)
For all the concern about sovereign default in Europe, the euro remains above its average since being created almost 12 years ago, a sign that foreign-exchange traders see little chance of a collapse as officials step up efforts to keep the debt crisis from expanding. “Too much political and ideological capital has been invested into making the euro project work and bringing the continent of Europe closer together since the end of World War II to allow it to unravel now,” Thanos Papasavvas, the head of currency management in London at Investec Asset Management Ltd., which invests about $95 billion, said in a Sept. 20 interview. Investors from billionaire George Soros, whose $10 billion bet in 1992 preceded the Bank of England’s devaluation of the pound, to John Taylor, who runs the world’s biggest currency hedge fund, have predicted the euro’s breakup or forecast it will slump to parity with the dollar.

Euro Declines Against Most Peers (Source: Bloomberg)
The euro fell versus the majority of its most-traded peers as Italy and Spain prepare to sell debt amid a regional fiscal crisis and before data that may add to signs the U.S. economy is struggling. The 17-nation euro traded 1.1 percent from a decade low against the yen after Dutch Prime Minister Mark Rutte said yesterday the Netherlands and Finland have no plans to increase their commitment to the euro area’s rescue fund after talks with his Finnish counterpart Jyrki Katainen. The Australian and New Zealand dollars snapped yesterday’s rally before a report likely to show U.S. consumer confidence stayed near the lowest in two years, curbing demand for currencies linked to growth. “I’m still bearish on the euro,” said Kengo Suzuki, manager of the foreign-bond department in Tokyo at Mizuho Securities Co., a unit of Japan’s third-biggest listed bank. “Europe’s problems haven’t been resolved at all.”

UK Food Inflation Rate 6% By 2012 (Source: CME)
UK food inflation rate could hit 6% by the end of the year despite a slump in the price of raw materials and unprecedented levels of discount offers in supermarkets, experts said. Consumers have felt the pinch this year as surging food prices have eaten into already hard-pressed household budgets. But now analysts warn prices will keep rising into 2012--despite the falling cost of basic ingredients. According to research by consumer trend analyst Kantar Worldpanel across 75,000 products in U.K. supermarkets, inflation currently stands at 5.2% and should hit 6% by 2012, even with more discount offers. "Shoppers will be looking for opportunities to trade down and brands need to be able to reassure risk adverse shoppers," said director Martin Whittingham.
Anya Gascoine Marco, director of insight at Allegra Strategies, agreed. She said the average cost of a basket in U.K. supermarkets has risen from GBP74.49 in July 2010 to GBP78.59 last month. Furthermore, with increases showing no sign of abating, she predicts inflation will rise to 6% this year. But, many manufacturers are doing their best to cut costs for shoppers. Jim Moseley, regional managing director for General Mills, said the maker of brands like Green Giant and Old El Paso has struggled to offset rising commodity prices this year, and has been forced to pass on 1%-9% of costs to shoppers. But even though agricultural markets have slumped in recent weeks--European coffee and sugar futures have lost 15% this month, while wheat has fallen 8%--Moseley said the lag in pricing of materials and ongoing pressure on manufacturers' margins will keep prices high.
"A lot of our ingredients and commodity inflation can happen very quickly but our ability to be able to execute that in the market can take up to six months," he said. "We have had to take a view of our margin aspirations." For staple products such as bread and tinned goods, many retailers are absorbing price rises to attract increasingly savvy shoppers. Moseley estimated that more than half of products on U.K. shelves are now on offer, while according to Whittingham, consumers save on average 12 pence for every pound they spend in supermarkets because of discounts. A spokesman for J Sainsbury PLC (SBRY.LN), which along with Tesco PLC (TSCO.LN), Wm Morrison Supermarkets PLC (MRW.LN) and Wal-Mart Stores Inc.-owned (WMT) Asda makes up three-quarters of the U.K. supermarket sector, said around 40% of the market tends to feature promotions.
"We're now seeing the highest levels ever seen of the proportion of goods being sold on deal," said Moseley. But Allegra's Gascoine Marco said such moves are unlikely to impress buyers. "A lot of consumers think the inflationary pressure is supermarket led," she said. "There's no brand loyalty anymore when it comes to supermarket shopping."

China Property Bonds Plunge Most Since 2008 (Source: Bloomberg)
China’s property company bonds are delivering the biggest losses in the world among developers this quarter amid speculation the banking regulator may close another avenue of funding. Dollar-denominated debt of Evergrande Real Estate Group Ltd. (3333), Hopson Development Holdings Ltd. and other Chinese homebuilders rated below investment grade has plunged 16.4 percent since June 30, the biggest quarterly decline since the last three months of 2008, according to Bank of America Merrill Lynch data. Junk bonds sold by U.S. homebuilders, including Beazer Homes USA Inc., lost an average 2.3 percent, data show. China is reviewing loans to developers by trust companies, which have become a last resort for many borrowers after the central bank raised interest rates five times over the past year and curbed lending to property companies. The stricter controls on the loans will add further financing pressure, according to a Sept. 23 report from UBS AG.

South Korea Plans to Cut Deficit as Europe Crisis Highlights Debt Concerns (Source: Bloomberg)
South Korea’s government plans to cut its fiscal deficit next year as the European sovereign debt crisis underscored the need for global policy makers to control their borrowing. Total spending will rise 5.5 percent to 326.1 trillion won ($273 billion), while tax revenue will gain 9.5 percent to 344.1 trillion won, the Ministry of Strategy and Finance said in its budget proposal for 2012 released today. The government’s deficit will shrink to 14.3 trillion won, or 1 percent of gross domestic product in 2012, from 25 trillion won, or 2 percent this year, according to its calculations. European shares gained yesterday on speculation officials will intensify their attempt to contain a debt crisis that threatens to send Greece into default. South Korea’s government said it aims to balance the budget in 2013 and post a surplus equivalent to 0.3 percent of the economy by 2015.

South Korea’s Consumer Confidence Remains at Its Lowest Level Since March (Source: Bloomberg)
South Korean consumer confidence remained at the lowest level since March as people braced for a global economic slowdown. The sentiment index was 99 in September, the same as in the previous month, the Bank of Korea said in an e-mailed statement today. A reading below 100 indicates people are more pessimistic than the average between the first quarter of 1999 and the second quarter of 2008. The Bank of Korea left interest rates unchanged for a third straight month in September as the risk of the global recovery stalling outweighed concerns about inflation. Consumer prices climbed 5.3 percent in August, the highest in three years, exceeding the central bank’s 4 percent limit for the eighth straight month.

India’s Inflation ‘Fairly Stubborn,’ Central Bank Governor Subbarao Says (Source: Bloomberg)
India’s inflation rate has been “fairly stubborn” and price pressures beyond a threshold are unacceptable, central bank Governor Duvvuri Subbarao said. “Inflation has been fairly stubborn,” Subbarao said in New York today. “Above a threshold, you can’t accept high inflation to have higher growth,” he said, adding that the price-rise limit is as much as 6 percent for the nation. The Reserve Bank of India on Sept. 16 extended its record- interest rate increases to tame the fastest inflation among the so-called BRICS economies. India’s benchmark wholesale-price inflation accelerated to a 13-month high of 9.78 percent in August from a year earlier. Higher food and fuel costs and weakness in the rupee may keep boosting price pressures.

Thailand Stock Decline Stokes Exporter Opposition to Yingluck Wage Policy (Source: Bloomberg)
The biggest drop in Thailand’s main stock index since 2008 prompted brokerages, fund managers and the bourse to call on Prime Minister Yingluck Shinawatra’s two- month-old government to alter plans to raise the minimum wage. The Federation of Thai Capital Market Organizations, a six- member grouping that includes the Stock Exchange of Thailand and Association of Investment Management Companies, urged policy makers to review any measures that would hurt exporters. The SET Index fell the most among Asian benchmark gauges yesterday, declining 5.7 percent, the biggest drop since Oct. 27, 2008. The sell-off “might bring some more common sense into the equation,” said Terry Weir, chief financial officer of Hana Microelectronics Pcl (HANA), Thailand’s biggest publicly traded semiconductor packager, which fell 6.1 percent. “If the minimum wage goes up far quicker than the productivity increase, then of course that will have a negative impact on our profits and on our competitiveness.”

Baltic index rises, ship market outlook fragile
LONDON, Sept 23 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, rose for a fourth session on Friday helped by continued iron ore and coal cargo bookings to Asia.
Brokers said growing vessel supply, which was outpacing commodity demand, was set to cap dry bulk freight rate gains in the coming months with growing challenges to the world economy adding to headwinds.

20110927 1019 Global Commodities Related News.

Corn (Source: CME)
US corn futures finished higher as the market recovered from an 8% slide last week. It seems the market may already have seen "the biggest share of the selling" it faces after December corn approached a fresh three-month low overnight, says Brian Hoops of Midwest Market Solutions. The sell-off renewed chatter about potential sales of US corn to China that helped support prices. "It's very possible that we'll see China step in and finalize some purchases," Hoops says. CBOT December corn rises 9 1/2c to $6.48/bushel.

Wheat (Source: CME)
US wheat futures end stronger, with prices on the Minneapolis Grain Exchange leading the rally on expectations the government will reduce its output forecast. Analysts predict the USDA will lower its spring-wheat harvest estimate in a crop report Friday because yields have come in lower than anticipated. Private firm Informa helped ignited concerns about a smaller crop by pegging output on Friday at 444M bushels, 6.5% below the USDA's last estimate. MGEX December wheat surged 19c to $8.70/bushel while CBOT December rose 7 1/2c to $6.48 1/4 and KCBT December gains 12 3/4c to $7.44.

Rice (Source: CME)
US rice futures extend losses from the three-year high reached earlier this month. Prices continue to pull back as traders take profits and worry about the global economy. Rice was unable to stabilize and recover from losses last week as corn, soybeans and wheat did. The nearby contract has lost nearly 12% since reaching an intraday high above $18.25/hundredweight two weeks ago. CBOT November rice drops 36c to $16.12 1/2/hundredweight.

Commodities Rise on Speculation Europe’s Debt Crisis May Ease (Source: Bloomberg)
Commodities rose from the lowest since December as European officials considered plans to curb the region’s sovereign-debt woes. The Standard & Poor’s GSCI index of 24 raw materials climbed 0.2 percent to settle at 600.37 at 3:46 p.m. in New York, snapping a three-session slump. Earlier, the gauge slumped as much as 2.6 percent to the lowest since Dec. 1. Next week, European Central Bank policy makers may discuss restarting covered-bond purchases and other measures to ease monetary conditions. The S&P 500 Index of equities climbed as much as 2.4 percent. Cattle, natural gas and coffee led the commodity rebound.

U.S. coal consumption off 5 pct last week -Genscape
HOUSTON, Sept 23 (Reuters) - U.S. coal consumption fell 5 percent last week and 7 percent from the same week a year ago, according to power industry data monitor Genscape.
There was cooler weather in the populous East and Midwest, WSI Corp weather service said. Cheaper natural gas also drove the changes.
Euro Coal-Prompt steady but Calendar swaps tumble
LONDON, Sept 23 (Reuters) - Prompt physical coal prices were steady to slightly lower on Friday but Calendar 2012 and 2013 coal swaps dropped by over $2.00 in line with the meltdown in world stocks, oil and base metals, triggered by global economic concerns.
Hedge funds have been sellers of coal API2, API4 and Newcastle swaps during the past two days and banks with exposure to options have continued to sell.

Crude Oil Advances in New York on Optimism Europe Debt Crisis Will Ease (Source: Bloomberg)
Oil advanced for a second day in New York on speculation steps by Europe to tame its sovereign debt crisis will temper a slowdown in the region's economy and demand for raw materials. Futures climbed as much as 1.6 percent as equities rallied. The European Central Bank may debate covered-bond purchases and interest rate cuts, a euro-region central bank official said. The European Union accounted for 16 percent of global oil demand last year, according to BP Plc’s annual Statistical Review of World Energy. U.S. crude stockpiles rose last week, an Energy Department report tomorrow may show. “If there’s a credible plan that is good enough and certain enough to restore reasonable confidence to the world then a lot of things are going to look cheap at current prices and that probably includes oil,” said Ric Spooner, a chief market analyst at CMC Markets in Sydney.

Tin Rallies as Indonesia Plans Export Halt Next Month to Try to End Rout (Source: Bloomberg)
Indonesia, the biggest exporter of tin, plans to halt overseas shipments from Oct. 1 to in a bid to support prices, according to Johan Murod, director at PT Bangka Belitung Timah Sejahtera, a group of smelters. Futures rallied. PT Timah, the biggest producer, and Malaysia Smelting Corp. unit PT Koba Tin were among 28 companies that agreed to the halt after meeting yesterday with Bangka Belitung Governor Eko Maulana Ali, Murod said by phone. Overseas shipments will be resumed if the price goes to $25,000 per metric ton, Murod said. Reduced supplies from Indonesia may help to stem a slump in prices that’s been driven by concerns that the world economy may slip into another recession as U.S. growth falters and Europe battles a sovereign-debt crisis. Tin producers faced bankruptcy if prices continued their slump, Murod said on Sept. 24.

Iron Ore-Spot prices at 2-month lows as buyers thin out
SINGAPORE, Sept 26 (Reuters) - Price offers for imported iron ore to top buyer China dropped further on Monday as weaker interest dragged down spot rates to their lowest level in more than two months.
The recent drop in steel prices in China, which pointed to leaner demand in the world's biggest consumer and producer, has thinned appetite for iron ore, a key steel raw material. Shanghai steel futures fell for a third day in a row on Monday.

Vale says new pig iron technology to cut steel costs
LONDON, Sept 23 (Reuters) - Rio de Janeiro-based miner Vale  is developing a new pig iron production technology which will cut steel production costs by up to 30 percent, increase productivity and cut carbon and particulate matter emission, a Vale executive said.
Vale started up the first pig iron demonstration plant in Pindamonhangaba, in Sao Paulo state, on Sept. 12. The new technology allows the use of lower quality, cheaper, raw materials to produce pig iron, a key steelmaking ingredient and it also cuts processing costs, Vale said.

Underlying China iron ore demand strong -ArcelorMittal
LONDON, Sept 23 (Reuters) - Underlying Chinese demand for iron ore is still strong despite evidence of more cautious behaviour from some buyers, ArcelorMittal told investors on Friday, adding it expects buying activity to restart in the fourth quarter.
"There has certainly been a longer period of stockholding in China at the mills this summer than the last couple of summers. What we are seeing is people taking a wait-and see approach in China, but the underlying demand is still very strong," Simon Wandke, chief commercial officer of ArcelorMittal's mining operations, said during an investor meeting.

Gold Futures Recover From Biggest 3-Day Decline Since 1983; Silver Gains (Source: Bloomberg)
Gold futures advanced for the first time in five days as the biggest three-day drop since 1983 encouraged purchases by investors seeking a store of value amid turmoil in global financial markets. Silver futures climbed for the first day in four, trading back above $30 an ounce. December-delivery bullion rose as much as 2.4 percent to $1,633.30 an ounce in New York before trading at $1,630.50. Futures tumbled 11.8 percent in the previous three days, the largest such drop in 28 years. Immediate-delivery gold was little changed at $1,628.72 an ounce after slumping 9.8 percent in the last four days on optimism European officials will come up with a plan to stem the region’s debt crisis. “The facts haven’t changed,” said Gijsbert Groenewegen, a partner at Silver Arrow Capital Management.
“The only thing that changes over time is the perception that the Europeans are doing something about it, that they might come up with some solutions, but they’re not solving the problem. They’re just postponing what will happen in three months or six months or whatever but we will get default.”

Ship Owner Losses Persisting With Glut While Mining Profits Boom: Freight (Source: Bloomberg)
Ship owners may face losses until 2015 even with mining companies poised to increase global iron- ore supplies by almost as much as China imports in a year. Rio Tinto Group, Fortescue Metals Group and Vale SA will lead a 59 percent expansion in seaborne supply to 1.69 billion metric tons over the next four years, Morgan Stanley estimates. The capesize fleet grew 73 percent since 2007 and will gain 25 percent more by 2015, according to Drewry Shipping Consultants Ltd. Daily rates may not exceed the $20,000 needed to break even until then, said Andreas Vergottis, who helps manage the world’s largest shipping hedge fund at Tufton Oceanic Ltd. in Hong Kong.
The three mining companies will make the most profit ever this year as combined earnings across the 14-member Bloomberg Pure Play Dry Bulk Shipping Index slump 55 percent, analysts’ estimates compiled by Bloomberg show. As the shipping industry grapples with a glut, miners are making money from shortages. Iron-ore prices more than doubled since the end of 2008 as suppliers failed to keep pace with demand from China, where steel production rose more than threefold since 2002.

20110927 1016 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures ended higher, rebounding from early price weakness. Signs of stability in external financial markets and the exhaustion of fund selling enabled prices to bounce in unison with higher feed grains, analysts say. Spillover support from solid gains in corn and wheat and oversold market conditions opened the door for advances. Traders are still concerned about uncertainty of actual yield potential. Ability of prices to bounce despite lower-than-expected export inspections figure confirmed that last night's price action washed out most of the fund liquidation, says Mike Zuzolo, president Global Commodity Analytics. CBOT Nov soy end up 1 3/4c at $12.59 3/4/bushel.

Soybean Meal/Oil (Source: CME)
Soy product futures closed mixed, with soymeal managing to bounce back from early losses in unison with a recovery in soybeans. Soyoil futures finished lower, unable to maintain a midday bounce amid mixed signals from external energy markets, analysts say CBOT Dec soymeal end up $0.10 at $330.20/short ton, and Dec soyoil dropped 0.24c to 52.40 cents/pound.

Soybeans Take A Back Seat To Corn (Source: CME)
Reduced production of soybeans in the U.S. and expectations that South America's crop won't make up for the shortfall could push inventories to historic lows by next summer, boosting prices. U.S. soybean prices have been mostly stagnant this year, masking a decline in U.S. production. Farmers increasingly favor planting more-lucrative crops such as corn, which yields a larger crop per acre, making the grain more profitable at current prices. Some South American farmers also are shifting to higher-priced crops. Paulo Shimohira, a Brazilian farmer in the northern state of Bahia and the central state of Goias, said he is planning to increase corn production by roughly 3,700 acres, while scaling back the number of acres he sows with soybeans when he plants his crop in the coming months. "Corn looks like it's going to be a good business," he said.
Crop prices have held up better than other commodities in the face of concerns over slowing economic growth. Yet corn, wheat and cotton prices have faced some sharp swings, while soybeans have traded mostly between $13 to $14 a bushel this year. U.S. soybean futures dipped below that range amid a broad global selloff last week, settling Friday at $12.58 a bushel, the lowest level of the year. China particularly relies on the western hemisphere for oilseeds to feed livestock and produce cooking oil as diets change among its emerging middle class. Yet this past spring, U.S. farmers started to set the stage for tightening supplies by cutting back on the number of acres they sowed with soybeans to take advantage of strong corn prices.
Growers in Brazil and Argentina could follow suit in the coming months as they plant, pulling back from their recent role of making up for shortfalls in the U.S. harvest. Further clouding the outlook for crops in Brazil and Argentina is the potential for a La Nina weather pattern, which could bring dry weather and cut crop yields. Agricultural consultancy Celeres forecasts Brazil's corn crop will jump by nearly 9% from a year ago to 58.39 million metric tons. The soy crop is expected to merely rise 0.4% to a record 75.18 million metric tons. Argentina is expected to plant about the same amount of soybeans as a year ago, while corn plantings are seen rising 9% to 10%, said Ricardo Baccarin, vice president of Panagricola, a brokerage.
Little growth in the South American soybean crop would come on top of an expected 7.3% drop in U.S. soybean production. Federal forecasters are projecting end-of-season supplies in the U.S. next summer at 165 million bushels. That's 27% below end-of-season supplies for the crop year that just ended and provides a cushion equal only to roughly 20 days of demand. Goldman Sachs in a recent report predicted soybean prices will rally over the next 12 months as production struggles to keep pace with demand. The bank cited competition for land from other crops and the potential for poor weather in South America as the main threats. "Soybean prices need to either outperform corn prices in coming months to secure sufficient acreage or will need to rally sharply next summer to achieve demand destruction in the face of lower supplies," Goldman Sachs analysts wrote.

India's Soymeal Exports Seen Rising To 5 Mln Tons (Source: CME)
India's soymeal exports are likely to jump nearly 20% on higher production and expectation of rising demand from European countries, a top industry executive said at the weekend. "We feel that India is likely to have a huge soybean crop, which could be in excess of 11 million tons. So the country will need to export 5 million tons," Atul Chaturvedi, chief executive of Adani Wilmer Ltd., told Dow Jones Newswires on the sidelines of the Globoil conference. India, one of the world's largest exporters of soymeal, is expected to ship about 4 million tons of in 2010-11. The country exports the oilmeal mainly to Southeast Asia with Vietnam being one of the top importers. Vietnam bought around 2.9 million tons of soymeal in 2010-11, most of which came from India and South America. Chaturvedi said the Indian soymeal exports to Vietnam could decline nearly 50% next year as the Southeast Asian country is shifting to soybean imports due to rising crushing capacity locally.
"We will not have exports of more than 700,000 tons [to Vietnam]. I think Europe could be one new destination and also Iran via Dubai route," he said. Indian industry has been exploring new markets for its oilmeal exports as favorable seasonal rains have brightened the prospects of summer-sown oilseed crops. But despite higher oilseed production, the country's import of edible oil is unlikely to fall because of rising demand. "We may end up importing around 8.6 million to 8.8 million tons next year," Chaturvedi said. India, the world's top edible oil importer, is expected to buy around 8.5 million tons of the cooking oil from overseas this marketing year through October. The chief executive of one of the country's largest edible oil importers of India also said that the recent rejig in the export tax structure by top edible oil supplier Indonesia was a matter of concern for the Indian refiners.
Indonesia, the world's biggest palm oil producer and exporter, has reduced its export tax on refined, bleached and deodorized palm olein in bulk to 8% from 15% and raised the duty on crude palm oil to 16.5% from 15% effective Sept. 15 to encourage domestic refining. The Indian industry has sought an increase in import tax on refined edible oil to 16.5% from 7.5%, following the Indonesian development.

Crude Palm Oil Prices Set To Fall (Source: CME)
Malaysian crude palm oil prices may fall to MYR2,525 per ton in the next six months on expectation of a rise in its stocks following the export tax cut in Indonesia and possibility of a further decline in crude oil prices, a leading vegetable oil analyst said Saturday. Crude palm oil futures on Bursa Malaysia Derivatives ended Friday at MYR2,992 a metric ton due to a broad asset sell-off on the back of rising concerns about global economic growth. Indonesia has reduced its export tax on refined, bleached and deodorized palm olein in bulk to 8% from 15% and raised the duty on crude palm oil to 16.5% from 15% effective Sept. 15 to encourage domestic refining. "By boosting its refined exports, Indonesia will reduce its own export sales of crude palm oil," said James Fry, chairman of London-based LMC International, at the Globoil conference.
This will put pressure onto Malaysia to raise its own crude palm oil exports to fill the gap, while cutting its exports of refined products in the face of much more competitively priced exports from Indonesia, he added. Indonesia and Malaysia compete with each other in the global market in palm oil and Malaysia mostly exports refined products. If the brent crude falls back to $87/bbl, it may also impact the prices of crude palm oil, Fry said. The current high crude oil prices are not only stimulating new discoveries and output, but also hitting the demand as users shift to other alternatives, he added. "This is why I believe the petroleum prices must fall ... and this will have a direct and negative impact on all vegetable oil prices," Fry said. The analyst also said he expects the soyoil prices in CBOT may fall to just below 50 cents by March.