20111006 1808 FCPO EOD Daily Chart Study.

FCPO closed : 2802, changed : +17 points, volume : higher.
Bollinger band reading : pullback correction downside biased.
MACD Histrogram : turned upward, seller taking profit.
Support : 2800, 2770, 2750, 2720, 2700 level.
Resistance : 2800, 2850, 2900, 2920, 2950 level.
Comment :
FCPO closed recorded small gain with better volume changed hand while overnight soy oil ended little higher and currently surging higher while crude oil continue to rise higher.
Broad comodities recovering higher as seller locking in profit and easing concern on global economy recovery. News wise, Reuters poll reported Malaysia September stocks seen up 3.5% at 1.95 million tonnes, output seen up 8%, exports seen down 11.2% and imports from Indonesia seen down 21.7%.
Daily chart formed an up doji bar candle with longer lower shadow close above middle Bollinger band after market opened and trade little higher, dive lower tested new 1 year low and recover upward snapping all intraday loss plus registering gain to closed near the higher of the day.
Chart reading turned to calling 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 resistant or strength with quick cut loss and profit target.

20111006 1748 FKLI EOD Daily Chart Study.

FKLI closed : 1397.5, changed : +23 points, volume : lower.
Bollinger band reading : pullback correction downside biased.
MACD Histrogram : rising, seller reducing exposure.
Support : 1395, 1385, 1375, 1360, 1350 level.
Resistance : 1400, 1420, 1430, 1440 level.
Comment :
FKLI closed recorded huge gains with declining volume exchanged doing 3.5 points premium compare to cash market that also ended higher. Overnight U.S. market continue to closed rebounded higher and today's Asia markets traded higher while European markets currently trading firmer.
Better than forecast U.S. economic data and optimism over European leaders will contain the region’s debt crisis lifted regional markets to trade higher. Market also awaits today ECB announcement on interest rate.
Daily chart formed an up bar candle closed above middle Bollinger band level after market opened gap up, traded side way range bound testing higher resistance level and closed near the high of the day.
Chart reading sstill 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.

20111006 1722 Regional Markets EOD Daily Chart Study.

  DJIA chart reading : pullback correction downside biased.

 Hang Seng chart reading :  pullback correction downside biased.

KLCI chart reading : pullback correction downside biased.

20111006 1622 Global Market & Commodities Related News.

Asian stocks up on Europe optimism, credit tightens
TOKYO, Oct 6 (Reuters) - Asian shares rose on Thursday, as optimism over Europe's efforts to aid the euro zone's financial sector and U.S. data suggesting the economy could avoid recession spurred short-covering and value-hunting.
"The U.S. data supported a view that despite the recent deterioration in sentiment, the financial turmoil so far has not had a serious material damage to the economy, at least in the United States," said Hiroki Shimazu, senior market economist at SMBC Nikko Securities.

FOREX - Euro steady, market holds breath before ECB
TOKYO, Oct 6 (Reuters) - The euro held steady against the dollar on Thursday as uncertainty gripped markets before an ECB meeting that could see rates cut or the rebirth of long-term lending to banks, while Europe's efforts to resolve its debt crisis and solid U.S. data provided tentative support for riskier assets.
The euro, last at $1.3331 , maintained most of its overnight gains made after Germany said it would help its own banks if necessary and opened the possibility of using a regional bailout fund to strengthen the euro zone banking system.

U.S. service sector growth slows, employment mixed
NEW YORK/WASHINGTON, Oct 5 (Reuters) - Growth in the U.S. service sector was steady in September and private hiring picked up, suggesting the economy was not yet slipping into recession.
Optimism over Wednesday's data, however, was soured somewhat by news that employers last month planned to lay off the most workers in more than two years. The bulk of the intended cutbacks, however, are in the U.S. military and at Bank of America  and are not directly related to recent weakness in the economy.

US corn steady after 3 pct rally, harvest caps gains
SINGAPORE, Oct 6 (Reuters) - U.S. corn futures steadied on Thursday, after their biggest rally in two months a day earlier, as investors scooped up the grain, optimistic that European leaders will succeed in averting a financial crisis that could trigger a global recession.
"Yesterday we saw a sharp rally in corn and wheat but there is still uncertainty in the market as one day of recovery doesn't change the situation much," said Ker Chung Yang, a commodities analyst at Phillip Futures in Singapore.

Argentina may sign deal soon to sell corn to China
BUENOS AIRES, Oct 5 (Reuters) - Argentina hopes to sign a deal with China in November that would clear the way for corn exports to the Asian country -- the world's No. 2 corn consumer, Agriculture Secretary Lorenzo Basso said on Wednesday.
China does not currently buy Argentine corn due to curbs on the genetically modified varieties that account for about 80 percent of the South American country's corn production.

Vietnam 2012 rice for export may reach 7.2 mln T-report
HANOI, Oct 6 (Reuters) - Vietnam, the world's second-largest rice exporter after Thailand, could have 7.2 million tonnes of the grain available for export next year after deducting domestic consumption, up from 7 million in 2011, a state-run newspaper said on Thursday.
Output in 2012 could drop to 41.52 million tonnes of unmilled rice from 41.57 million this year, but consumption could fall to 27.33 million tonnes from 27.52 million in 2011, the Nhan Dan daily cited Agriculture Ministry projections as showing.

Informa lowers US 2011 corn yield forecast
CHICAGO, Oct 5 (Reuters) - Analytical firm Informa Economics on Wednesday cut its estimate of the U.S. 2011 corn yield to 149.5 bushels per acre (bpa), from 151.0 previously, and projected U.S. corn production at 12.519 billion bushels, trade sources said.
Informa raised its U.S. 2011 soybean yield forecast. The firm also cut its corn and soybean production forecasts for Argentina, citing adverse crop weather associated with the La Nina phenomenon.

I.Coast intensifies fight against cocoa smuggling
ABIDJAN, Oct 5 (Reuters) - Top world cocoa grower Ivory Coast has ramped up border security and warned cocoa dealers they could be prosecuted if they are caught smuggling beans to neighbouring countries, farmers and a government source said on Wednesday.
The move comes after a 2010-11 cocoa season in which as much as 200,000 tonnes of the West African nation's crop was transported to Ghana, Liberia and elsewhere as dealers sought higher prices and other export outlets than Ivorian ports, which were shut off for months by a post-election civil war and cocoa export ban.

Russia to harvest 95 mln t grain this year-Putin
MOSCOW, Oct 5 (Reuters) - Russia will harvest 95 million tonnes of grain this year, Prime Minister Vladimir Putin said on Wednesday, giving a figure above the official forecast of 90 million tonnes.
"As of today, or Oct. 5, 90 million tonnes of grain have been harvested," Putin told a government meeting.
 
Brazil mid-crop ends above forecast but down on year
BRASILIA, Oct 5 (Reuters) - Brazil's May-September cocoa mid-crop has ended well above initial forecasts but lagged last year's output by nearly 2 percent, data from Bahia Commercial Association showed.
The mid-crop ended having produced 1,680,592 60-kg bags (100,836 tonnes) in both Bahia and outlying cocoa producing states. By comparison, the 2010 mid crop produced 1,711,358 (102,681 tonnes).

Duties to quash Ukrainian hopes of record exports
KIEV, Oct 5 (Reuters) - Ukrainian grain exports in the 2011/12 season may reach just half the previously expected record volume of 24-25 million tonnes if export duties on grains remain in place, Agriculture Minister Mykola Prysyazhnyuk told Reuters on Wednesday.
"We need to export 25 million tonnes but if export duties remain in place, we will export about 13 million tonnes, maybe a little bit more," he said.

Brent above $102; Libyan oilfield may be in ruins
SINGAPORE, Oct 6 (Reuters) - Brent crude held above $102 after surging in the previous session as pessimism about weaker demand was outweighed by a surprise drawdown of U.S. inventories and concerns that Libya's largest oilfield could be damaged.
"We went from about $76.00 to around $79.70 for WTI (this week) and prices holding on to those highs shows the market is pretty much doing alright," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.

Antofagasta sees Chinese restocking move soon
LONDON, Oct 5 (Reuters) - Chinese buyers are close to coming back into the market for copper re-stocking if prices stay at or below current levels, Antofagasta  Chief Executive Marcelo Awad said.
"I think we are getting close. They (Chinese buyers) are opportunistic and the copper price now is good ... if you compare with all the forecasting for the coming months, years," Awad said, adding he expected the price to rise in the short term as a result, up from current levels of around $6,900.

Supply woes will hold up copper price-First Quantum
LONDON, Oct 5 (Reuters) - Miner First Quantum Minerals  does not expect copper prices, down almost 27 percent since the start of September, to reach lows hit in 2008 as constrained supply and healthier mining companies underpin the price.
"I don't see that happening this time around. The world is very different, and the mining sector is in a very different place in terms of gearing and availability of cash ... it is in a much stronger (position)," First Quantum President Clive Newall said in an interview.

Copper rises for a second day on Europe steps
KUALA LUMPUR, Oct 6 (Reuters) - Copper on the London Metal Exchange rose for a second day as Europe's steps to help its financial sector and U.S. economic data point to an improved outlook for industrial metal demand.

Pan Pacific agrees unchanged 2012 copper premium -source
TOKYO, Oct 6 (Reuters) - Pan Pacific Copper , Japan's biggest copper smelter, has signed 2012 annual refined copper supply contracts with Chinese and Taiwanese buyers at a premium of $100 per tonne, unchanged from 2011, for a total of 110,000 tonnes, a company source told Reuters.  
"Real demand for copper in China remains solid," the source said, adding that the contract volume was bigger than the 100,000 tonnes deal signed by the company at this time last year.

METALS - Copper rises for a second day on Europe steps
KUALA LUMPUR, Oct 6 (Reuters) - London Metal Exchange copper rose for a second day on Thursday as Europe's steps to help its financial sector and U.S. economic data point to an improved outlook for industrial metal demand.
Three-month copper on the London Metal Exchange  climbed 1.3 percent to $6,910.25 a tonne by 0453 GMT after edging up $20 to end at $6,820 a tonne in the previous session. Futures are headed for a fifth week of declines.

PRECIOUS - Gold tracks equities higher ahead of ECB meet
SINGAPORE, Oct 6 (Reuters) - Gold ticked up in volatile trade on Thursday due to a steadier euro, gains in equities, purchases from jewellers, and hopes that Europe's moves to prop up its ailing banking sector could cushion the fall.  
Investors will turn their attention to a meeting of the European Central Bank policy meeting on Thursday, when President Jean-Claude Trichet is likely to prepare the ground for a pre-Christmas interest rate cut and offer banks further protection against the euro zone's worsening debt crisis.

Gold tracks equities higher ahead of ECB meet
SINGAPORE, Oct 6 (Reuters) - Gold ticked up in volatile trade on Thursday due to a steadier euro, gains in equities, purchases from jewellers, and hopes that Europe's moves to prop up its ailing banking sector could cushion the fall.  
"There's a little bit of (physical) buying. But if the market continues moving up, then of course the demand will be a bit less. The market is very choppy and thin," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

20111006 1446 Global Market & Commodities Related News.

GLOBAL MARKETS-Asian stocks up on Europe optimism, credit tightens
TOKYO, Oct 6 (Reuters) - Asian shares followed global stocks higher on Thursday, buoyed by a recovery across a broad range of assets on optimism over Europe's efforts to aid the region's financial sector and U.S. data suggesting the economy could avoid recession.
An easing of risk aversion, after an intensive sell-off earlier this week on fears that Europe's debt problems could trigger a new global financial crisis, helped boost commodities while tightening Asian credit markets sharply.

Asia Stocks Rise on Europe Outlook, Better-Than-Expected U.S Economic Data (Bloomberg)
Asian stocks rose for the first time in five days as better-than-expected U.S. economic data and optimism European leaders will contain the region’s debt crisis boosted the earnings outlook for exporters. Sony Corp. (6758), Japan’s No. 1 exporter of consumer electronics, advanced 4.7 percent in Tokyo. Cathay Pacific Airways Ltd. (293), Asia’s largest international carrier, jumped 7.1 percent in Hong Kong. James Hardie Industries SE (JHX), a building-materials supplier that gets almost 70 percent of its sales from the U.S., climbed 8.2 percent Sydney. BHP Billiton Ltd. (BHP), the No. 1 global mining company, gained 3.3 percent as commodity prices advanced.
The MSCI Asia Pacific Index rose 2.8 percent to 110.36 as of 3:13 p.m. in Tokyo. About seven stocks advanced for each that fell and all 10 industry groups climbed, led by commodity producers and banks. The gauge tumbled 16 percent in the third quarter, the biggest drop since 2008, amid concern that Europe’s debt crisis and a U.S. economic slowdown will drag the world back into recession.

Japanese Stocks Rise, Snapping Four-Day Losing Streak, on Europe Optimism
Japanese stocks rose for the first time in five days on signs that European policy makers will act to contain the region’s sovereign debt crisis, boosting the earnings outlook for Asia’s exporters. Sony Corp. (6758), Japan’s biggest exporter of consumer electronics, rose 4.7 percent. Nissan Motor Co., a carmaker that gets 33 percent of its sales in the U.S. and Canada, gained 4.3 percent after a U.S. jobs report beat estimates. Aeon Co. advanced the most in seven months after the supermarket chain raised its profit forecast to a record following the acquisition of two domestic grocers. The Nikkei 225 (NKY) Stock Average rose 1.7 percent to 8,522.02 at the 3 p.m. trading close in Tokyo, snapping a four-day losing streak after French and Belgian officials said they had made progress on a plan to split up troubled lender Dexia SA. (DEXB) The broader Topix index gained 1.5 percent to 736.86.

COMMODITIES-Crude, copper, gold, grains rally after steep rout
NEW YORK, Oct 5 (Reuters) - Most major commodity markets rallied on Wednesday, after days of steep declines put prices at levels investors viewed as buying opportunities once European leaders agreed to examine the banking sector and U.S. government data suggested demand was still on the rise.
"With all of these markets the de-risking trade has predominated heavily in the last week or so. So, we may be getting a few people moving back into some of the metals especially, which got a bit overdone,"

Retreating food, fuel prices are best stimulus:Kemp
LONDON, Oct 5 (Reuters) - Sharp declines in prices for grains and gasoline will be the most effective stimulus for renewed growth, by easing the squeeze on household finances across North America and Western Europe, but only if price cuts can be sustained.
Relative declines in prices for food, clothing and fuel have been one of the big drivers of rising living standards since the end of World War Two, lifting millions out of poverty and freeing up a larger share of income for spending on other goods and services ranging from consumer electronics to college education and healthcare.

Oil rises 3 pct on drop in US inventories; Europe
NEW YORK, Oct 5 (Reuters) - Brent crude rose 3 percent on Wednesday to snap a three-day losing streak, lifted by government data showing big drops in U.S. inventories and by signs authorities were moving forward to prop up Europe's ailing banking sector.
While demand in top consumer the United States remained weak, data from the U.S. Energy Information Administration showed a steep drop in imports last week helped drive crude inventories to their lowest since January. Stockpiles of refined products also fell.
"The EIA reported better-than-expected numbers, particularly  the crude draw," said Joe Posillico, broker for MF Global in New York.

Colombia sees oil output recovering after protests
RUBIALES FIELD, Colombia, Oct 5 (Reuters) - Colombian Energy Minister Mauricio Cardenas said on Wednesday the nation expected oil production to recover to 950,000 barrels per day in October after demonstrations hit output last month.
Major oil companies in Latin America's No. 4 crude producer have been rocked this year by protests demanding more local jobs and social investment, which the industry sees as more of a threat than the rebels still plaguing the Andean nation.

Crude Oil Trades Near Four-Day High on Shrinking Supplies, U.S. Job Growth
Oil rose for a second day in New York as investors bet that shrinking crude stockpiles and signs of economic recovery indicate more demand for fuel. West Texas Intermediate futures gained as much as 0.7 percent after rising the most in almost five months yesterday. Inventories fell 4.7 million barrels, an Energy Information Administration report showed. Analysts surveyed by Bloomberg didn’t anticipate the drop, forecasting a gain of 1.5 million barrels. Data from ADP Employer Services showed U.S. companies added more jobs than predicted last month. Europe may boost bank capital to tame its debt crisis, an International Monetary Fund official said.
“A surprisingly positive U.S. EIA inventory report provided additional upside for WTI,” Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd. in Melbourne, said in a note today. “Commodity prices improved as European authorities appear to be stepping up support for European banks and U.S. private sector employment data was better than expected.”

NYMEX-Natural gas ends down 2 pct, front hits 11-mth low
NEW YORK, Oct 5 (Reuters) - U.S. natural gas futures ended lower on Wednesday, their fifth loss in six sessions, as mild weather forecasts and concerns about growing supplies again drove the front contract to another 11-month spot chart low.
"The futures market is continuing to slowly drift lower as the vast majority of the projections for the (EIA inventory) report are bearish,"

EURO COAL-Prices steady, outlook seen soft
LONDON, Oct 5 (Reuters) - Prompt physical coal prices were little changed on scant volume on Wednesday, while a lack of buying interest and worries over the health of the world economy weighed on the market.
"On the physical side there is a lack of genuine buyers. It's still the same guy who keeps buying but at lower levels, with no real Indian demand or Chinese demand because of holidays,"

20111006 1108 Malaysia Corporate Related News.

There will not be an immediate war in  Internet protocol television (IPTV)  when Maxis steps in with its IPTV offering as part of its multi-play services at  the end of this month, said IDC Asia Pacific Telecom and mobile research  analyst John Cheah. "IPTV, though it could spark a price war with both services  in the market, won't be available to most cities for some time, so there should be  breathing room before the squeeze begins in earnest. Both service providers are  now "striking while the iron is still hot and they were striking at the same spot."  (StarBiz)

Mah Sing Group has proposed a mixed township development, including  beginner homes on a piece of land measuring 225.7 acres (90.3 ha) in Rawang,  Selangor, which it acquired for RM92m. Mah Sing will purchase the entire  equity interest in Semai Meranti, the owner of the land, for RM57m and repay  RM35m for shareholders' advances. The total effective consideration of RM92m  works out to RM9.36 psft. THe land will be developed into a township names M  Residence @ Rawang consisting of residential and commercial properties with  an estimated GDV of RM948m. (Financial Daily)

Aviation tycoon Tan Sri Tony Fernandes appears to be moving his allegiance  from one former prime minister to another since coming under attack from  influential Malay right-wingers over AirAsia‟s controversial share swap deal  with Malaysia Airlines (MAS). Having won the public backing of Tun Dr  Mahathir Mohamad last month, the AirAsia boss has now distanced himself  from former Prime Minister, Tun Abdullah Ahmad Badawi and the latter‟s  circle, included Abdullah‟s son-in-law Khairy Jamaluddin and businessman  Datuk Kalimullah Hassan. Fernandes insisted that the share swap deal between AirAsia and MAS  involved great risks to both companies, and denied either party was  being „bailed out‟. He also sought to portray the controversial decision  to buy Queen Park Rangers as a publicity stunt that had benefitted MAS.  (Malaysian Insider)

AirAsia  is flying to Da Nang, Vietnam, from December 16 and the low-cost  airline is confident of achieving a load factor of more than 80%. According to its  regional head of commercial, Kathleen Tan, there is  demand for flights to  Vietnam based on the good load factor for its flights to Hanoi and Ho Chi Minh  City. Da Nang, she added apart from ancient ruins to be explored and white  sandy beaches to be enjoyed, the city also serves as a shorter meeting point for local small and medium enterprises to trade within the country as it is located in  central Vietnam. (BT)

Bursa Malaysia Bhd aims to double the daily average trades on its murabaha  platform to RM1bn next year as it expands its Islamic finance products in overseas markets, a company official said. The operator‟s Suq Al-Sila‟ tawarruq platform enables Islamic banks to  manage their liquidity through the sale and purchase of commodities,  which the industry hopes will address the lack of widely accepted sharia  liquidity management tools. The lack of liquidity tools is seen as one of the key challenges to the  emerging Islamic finance industry, with syariah banks handicapped  partly due to the limited range of products they can invest in. Bursa Malaysia will expand its business in Middle Eastern countries  such as the United Arab Emirates, Saudi Arabia, Kuwait, Qatar and  Jordan and would consider opportunities in North Africa, said  Norfadelizan Abdul Rahman, the exchange‟s Islamic markets‟ acting  global head. (Reuters)

The Securities Commission (SC) has done away with a requirement for an  annual renewal of licences for those carrying out capital market activities, but  now it has to approve the CEOs of licensed intermediaries. Licensed  intermediaries in the marketplace include stockbroking firms, fund  management companies and investment banks. The new requirements are part of the significant amendments to the  Securities Commission Act 1993 (SCA) and Capital Markets and  Services Act 2007 (CMSA), which came into force on Oct 3.The  amendments to the CMSA also empower the regulator to obtain  information and issue directions to market intermediaries to take  appropriate measures to monitor, mitigate or manage systemic  risk.(BT)

The Malaysian Palm Oil Association (MPOB) will not quit the Roundtable  on Sustainable Palm Oil (RSPO) grouping but it is advising its members to stop  seeking new RSPO certification for the production of certified sustainable palm  oil (CSPO). "We want to see the current RSPO certified palm oil production of  5.1m tonnes be fully taken up by Western buyers," said MPOB vice-chairman  Boon Weng Siew. Furthermore, MPOA and the Indonesian Palm Oil Association  (GAPKI) members were disappointed with the poor off-take and low premium of CSPO despite having gone through cumbersome and costly certification  processes. (Starbiz)

A bill to allow gambling in Miami-Dade County is being drafted in Tallahassee  and may be filed this week, setting the stage for powerful gambling interests to  vie over whether Florida will open its doors wider to gambling. The Genting  Group has hired a group of lobbyists including Carlos Curbelo, who manages a  public relations firms and is on the School Board of Miami-Dade County. (South  Florida Business Journal)

The government has no plans to privatise Indah Water Konsortium (IWK) for the time being, Prime Minister Datuk Seri Mohd Najib Razak said. The  prime minister said the government had taken over IWK's equities for RM192m  in the year 2000 and spent RM1.2bn to make up the deficit in IWK's operations.  "This was because the sewerage tariffs were lower than the actual operations  cost," he said. IWK's liabilities up to June this year was RM1.98b while total  assets were RM1.2b. (Bernama)

Perodua plans to venture into the used car business as a way to boost sales.  Managing Director Datuk Aminar Rashid Salleh said Perodua was currently  conducting a feasibility study on the matter and expects it to be completed  within the next three-six months. "The used car business is to facilitate those  who may want to trade in their cars to buy new ones. We are doing a feasibility  study on the business," he said. (BT)

Perodua hopes its plan to export its vehicles to South Africa will become a  reality in the next one or two years, Managing Director Datuk Aminar Rashid.  Perodua, through Daihatsu, is currently in preliminary discussions with certain  parties in South Africa for that purpose, he said. "If it‟s under Perodua, there are  a lot to be done such as branding and identification of distributors. If we export  under Daihatsu brand, we‟ll just ride through the existing network. Hopefully, it  will become a reality in the next one or two years, it‟s within our five-year  roadmap,” he said. (BT)

Perodua  expects to ink a collaborative agreement with Proton on certain  aspects this year or early next year. "There are a few areas that we are trying to  collaborate. We are still at the discussion stage. We will announce a  memorandum of understanding this year or the next," said managing director  Datuk Aminar Rashid Salleh. He said Perodua's stance on the merger with  Proton had not changed. "We are against the merger. We have our own plans  going forward," he added. (Starbiz)

Sales of Peugeot-brand cars in Malaysia is expected to continue growing with  the launch of Peugeot 508 by Nasim later this month. Nasim said sales, thus far,  has been overwhelming. "As at end-September, we have sold over 4,000 units  which is a new record for the Peugeot brand in Malaysia. This is double our  sales in the same period in 2010 and surpasses our all-time record of 3,773 units  sold in 2009," said Nasim CEO and Joint Group Executive Chairman of Naza  Group SM Nasarudin SM Nasimuddin. (Bernama, BT)

Automotive industry players are hoping that hybrid vehicles, which sales are  expected to hit record high this year, be given excise duty exemptions again in  Budget 2012. "We hope full exemption of import and excise duties for hybrid  and electric vehicles be extended up to five year in order to build market  acceptance of this niche segment,"  Malaysian Automotive Association (MAA)  president Datuk Aishah Ahmad said. (Starbiz)

Suzuki Malaysia Automobile  plans to increase production of the Suzuki  Swift model to 700 units monthly compared to the current output of 400 units. "The manufacturing plant is operating on one shift and we will soon increase  output by doubling production," said Managing Director Ibrahim Maidin.  (Bernama, Malaysian Reserve)

Midciti Resources Sdn Bhd, a 50.5% owned subsidiary of  KLCC Property  Holdings Bhd  has completed the issuance of RM880m in nominal value of  Islamic Medium Term Notes (“Sukuk”), pursuant to the Sukuk Programme. The  Sukuk Programme is rated AAA     IS     by Malaysian Rating Corporation Berhad.  (BMSB)

UEM Land Bhd’s unit Bandar Nusajaya Development Sdn Bhd (BND), is  appealing to the Inland Revenue Board (IRB) on its notice for BND to pay as  much as RM73.8m in additional tax and penalty, (BT)

Share of Latexx Partners have been gaining ground this week amid an overall  weaker broader market. Banking sources said that there was something more  brewing at Latexx, such as a possible takeover. "There are a number of parties  who are currently in talks with the owner of Latexx for a possible takeover, but  nothing is finalised yet," he said. The source said that the owner of the glove  maker was still keen to sell the company despite recent failed merger and  acquisition attempts. (Starbiz)

Masterskill Education Group Bhd (MEGB) intends to seek the approval of  its shareholders to purchase up to 10% of its issued and paid-up share capital . A  circular to shareholders containing the details of the Proposed Share Buy-Back  will be despatched to the shareholders of MEGB in due course. (BMSB)

Berjaya Books (Berjaya Books), a wholly-owned subsidiary of  Berjaya  Corporation (BCorp), has acquired the licence to use Border's trademark in  perpetuity within Malaysia following the successful acquisition of the brand.  The company also has the unreserved right to operate both brick-and-mortar as  well as internet-based retail businesses using that trade name. The Bankruptcy  Court of New York approved the acquisition on September 26 this year thereby  making Malaysia as being the only country in Southeast Asia where Borders still  operates. (BT)

Huat Lai Resources Bhd is proposing to buy three parcles of agriculture land  from Yayasan Melaka for RM43m. Huat Lai said it will finance the purchase  through internally generated funds and bank borrowings. (BT)

Tricubes Bhd expects contribution from its online services business, namely  tamtamCRM and MyEmail project, to only start coming in from 2H12. The  company is yet to sign up corporations or government organisations to its portal,  but a pilot run for two government agencies is expected this month. Tricubes  CEO Khairun Z. Mokhtar declined to reveal the agencies involved but said that  the company is in discussions with four agencies. The four are the Royal  Malaysia Police, the Road Transport Department, the Employees Provident  Fund and the Kuala Lumpur City Hall.  According to Khairun, the company will also approach private  companies to participate in the MyEmail portal.Since its launch in  September, the MyEmail project has so far registered over 3,000 users,  with only half of them having gone through the authentication  process.Authentication is  done through biometric reading of users  identification card. (BT)

The RM50m myemail project has 3,000 subscribers so far since going live  on September 14th. The subscriber target set by Pemandu is 5.4m by the end  of the year. Tricubes CEO, Khairun Zainal Mokhtar, admitted the target is a "stretch" and said the internal forecast has been readjusted to 2m subscribers by  2012. (Malaysiakini)

20111006 1107 Local & Global Economic Related News.

Overseas investors sold Malaysian stocks for a second straight month in  Sep, as the benchmark FTSE Bursa Malaysia KLCI capped its biggest quarterly  slump of 12% in almost three years.  Foreign funds unloaded RM300m  (US$94m) of Malaysian shares last month, according to data on the Kuala  Lumpur stock exchange‟s website. Some RM3.8bn flowed out of equities in Aug,  the most since at least Oct 09, after four consecutive months of inflows.  (BT)

PM Datuk Seri Najib Tun Razak on Friday will announce his government  has met its budget target for the second straight year and may either maintain  or narrow the fiscal gap in 2012, a senior government source with direct  knowledge of the budget said yesterday. The 5.4% of GDP target for 2011 would  be hit and more fiscal consolidation could be in store, the source noted.  The senior government source also said that 2012 budget was based on  a minimum of 5% growth.  “Some of the prime minister‟s investment initiatives are paying off and  5% is realistic even with the possibility of a global recession,” the source  said.  PM is set to present the budget on Friday at 4pm. (Malaysian Insider)

The redevelopment of Kampung Baru will not he unduly delayed by the  re-tabling of the amended Kampung Baru Development Corporation Bill,  said Senator Datuk Abdul Rahim Rahman. The new amended Bill was tabled,  debated and passed at the Dewan Rakyat sitting yesterday. With the Bill passed,  it would then be gazette and by 1Q12, Kampung Baru Corp (KBC) would be set  up, he said. (Starbiz)

US mortgage applications decreased 4.3% from one week earlier, according  to data from the Mortgage Bankers Association‟s (MBA) survey for the week  ended 30 Sep (+9.3% in the prior week). The Refinance Index decreased 5.2%  from the previous week. The seasonally adjusted Purchase Index decreased  0.8% from one week earlier. (MBA)

US employers announced the most  job cuts in more than two years in Sep,  led by planned reductions at Bank of America Corp. (BAC) and in the military.  Announced firings jumped 212%, the largest increase since Jan 09, to 115,730 in  Sep, according to  Challenger, Gray & Christmas Inc. On a mom basis,  job-cut announcements climbed 126% in Sep.  Cuts in government employment, led by the Army‟s five-year troop  reduction plan, and at Bank of America accounted for almost 70% of the  announcements.  Financial companies announced 31,167 cuts, the second most layoffs.  (Bloomberg)

US companies added 91,000 jobs in Sep (+89,000 in Aug), according to data  from ADP Employer Services. Economists called for an advance of 75,000. There was an increase of 1,000 workers in goods-producing industries  last month, which include manufacturers and construction companies.  Employment at factories fell by 5,000. Service providers added 90,000 workers in Sep, figures showed.  (Bloomberg)

The  US ISM non-manufacturing index, which tracks services and  construction sector activity, fell to  53 in Sep (53.3 in Aug). Levels above 50  imply growth. The reading matched economists‟ expectations. (Bloomberg)

Markit's Eurozone Services Purchasing Managers' Index (PMI) fell to 48.8 in  Sep (51.5 in Aug), its lowest reading since Jul 09 and below an earlier flash  reading of 49.1. It is the first month the index has been below the 50 mark that  divides growth from contraction since Aug 09. (BBC)

Eurozone composite PMI fell to 49.1 in Sep (50.7 in Aug), its lowest level  since Jul 09 and down from a flash estimate of 49.2. (Reuters)

European retail sales declined 0.3% mom in Aug (+0.2% in Jul), the  Eurostat said. The reading matched economists‟ expectations. On a yoy basis,  sales dropped 1% yoy (-0.4% in Jul). (Bloomberg)    

Thailand‟s central bank is ready to use  monetary policy to boost the  economy if necessary amid rising risks to growth, Governor Prasarn  Trairatvorakul said. “If the situation changes and the economy needs to be  stimulated, monetary policy is ready to do the job,” he said. Thailand‟s baht is  expected to strengthen next year on capital inflows to Asia as economic growth  in Europe slows, he said. (Bloomberg)

Thailand‟s worst  floods in at least 50 years may slow economic growth and  cause US$1.6bn of damage, posing the first leadership test for Prime Minister  Yingluck Shinawatra since she took office two months ago. (Bloomberg)

Philippine inflation accelerated in Sep after transport and utility costs rose.  Consumer prices increased 4.8% yoy (4.7% in Aug). The median estimate was  for a 4.9% rate. (Bloomberg)

India‟s seasonally adjusted HSBC Service Sector Business Activity Index,  prepared by Markit, was at 49.8 in Sep, down from 53.8 in Aug. The level is the  lowest since Apr 09. (Wall Street Journal, Bloomberg)

M3 in  India, which mainly  comprises currency in public circulation bank  deposits and money invested in other saving plans, stood at INR68.6tr  (US$1.39tr) as on 23 Sep, an increase of 16.3% yoy. India‟s  reserve money outstanding rose 16.9% yoy, or INR2tr to INR14tr. (Bloomberg)

The Indonesian government is considering reactivating the crisis alert status  that it deactivated recently as negative external sentiment hit the nation‟s  financial markets hard. The alert status indicates the need to utilize the  coordinated crisis management protocol between the government, Bank  Indonesia (BI) and related institutions which would step into the market to  calm volatility and stabilize prices. (Jakarta Post)

Vietnam’s dong fell as the central bank lowered its daily reference rate for the  first  time since Aug, fixing the reference at VND20,638 per US$1, compared  with VND20,628 yesterday, according to its website. (Bloomberg)

Vietnam’s central bank met 12 banks on Tuesday and pledged to stabilise  interest rates by the year end. (Reuters)

Thailand‟s government maintained an economic  growth target of 4% this  year, even floods damage agricultural crops and the global recovery falters.  (Bloomberg)

The  US Senate is expected to vote on  Thursday on legislation designed to  press China to let its yuan currency rise in value, setting the stage for debate  in the House of Representatives, whose leader has called the bill a "dangerous"  overreach by lawmakers. (Reuters)

20111006 1012 Renewable Energy Related News.

MERKEL SUGGESTS CUTTING SOLAR SUBSIDIES FURTHER
MAGDEBURG, Germany, Oct 4 (Reuters) - German Chancellor Angela Merkel said on Tuesday solar energy subsidies should be reduced, and it could make more sense in the future to draw solar energy from places like Greece, where the sun shined longer.
Merkel said that while wind energy seemed on track to becoming commercially viable in Germany, this did not seem the case for solar energy.

WESTINGHOUSE SOLAR FILES PATENT VIOLATION CASE
Oct 3 (Reuters) - Westinghouse Solar Inc  said on Tuesday its rival Canadian Solar Inc  infringed two of  its solar panel patents and it was seeking to ban some products from being imported into the United States.
Westinghouse filed a complaint with the International Trade Commission, complaining that Canadian Solar and its supplier Zep Solar sold a product that used proprietary technology that was part of Westinghouse Solar's Andalay module.

SMALL CANADA PROVINCE FLEXES GREEN ENERGY MUSCLE
Oct 4 (Reuters) - Nova Scotia is a small, picturesque province on Canada's Atlantic Coast but its appetite for green energy is big and aggressive as it moves to wean itself away from coal, and wins plaudits for its efforts.
Last month, the province, Canada's second-smallest, unveiled the highest tariff in North America for developers of small wind energy projects as well as the highest in the world for small power plants driven by ocean tides.

SAUDI ARAMCO PLANS SOLAR CELL OUTPUT WITH SHOWA SHELL-NIKKEI
TOKYO, Oct 4 (Reuters) - The chief executive of state-run Saudi Aramco, Khalid Al-Falih, aims to begin production of solar cells in Saudi Arabia in two to three years in a joint venture with Japanese thin-film solar cell maker Showa Shell Sekiyu KK , Japan's Nikkei business daily said on Tuesday.
If Aramco can introduce Showa Shell's technology into Saudi Arabia, that would contribute a lot to the nation's main goal of industrial diversification, he was quoted as telling the newspaper in an interview.

BP TO BUILD $800 MLN KANSAS WIND FARM IN 2012
Oct 3 (Reuters) - BP Plc  announced plans on Monday to build an $800 million wind farm in Kansas next year, providing a lift for the U.S. wind power industry as its outlook dims with the looming expiry of federal tax credits.
The 419-megawatt Flat Ridge 2 wind farm will include 262 General Electric  turbines spinning about 43 miles (69 km) southwest of Wichita, BP said, in what will be the largest installation for both the state and BP Wind Energy.

TOHOKU ELECTRIC AIMS TO TRIPLE WIND POWER BY 2020
TOKYO, Sept 30 (Reuters) - Tohoku Electric Power Co  said on Friday it aims to accept more than triple the capacity of wind power to its grid at 2 gigawatts by 2020 to meet needs to build wind farms in the region whose wind potential is among the highest in Japan.
The country's fragmented grid narrowly linked by 10 regionally dominant power utilities has limited ability to absorb massive capacity from such variable energy sources like solar and wind.

SOLARWORLD EXPECTS ANTI-DUMPING COMPLAINTS VS CHINA
FRANKFURT, Sept 30 (Reuters) - SolarWorld , Germany's No.2 solar player by sales, expects anti-dumping complaints to be filed against China's solar industry and would actively support such action, its chief executive said.
"Based on the facts, we think that such complaints will have to be filed," Asbeck said, adding he would "welcome" a U.S. trade complaint against China and anti-dumping penalties in the European Union.

IBERIA SPOT POWER EASES AGAIN ON STRONGER WINDS
MADRID, Sept 28 (Reuters) - Iberian wholesale power eased for the third straight day on Wednesday due to wind power rebounding from low levels although shortages of cheap hydro and nuclear power continued to bolster prices.
National grid operator REE  predicted wind farms in Spain -- which accounts for about 85 percent of the Iberian Electricity Market (Mibel) -- were to raise output to as much as 4,733 megawatts on Thursday from 3,531 MW on Wednesday afternoon.

20111006 1011 Biofuels Related News.

US UNLIKELY TO HIT ADVANCED BIOFUEL GOAL - REPORT
WASHINGTON, Oct 4 (Reuters) - The United States will likely fail to reach its long-term mandate for making advanced ethanol from trees, grasses and crop waste unless producers innovate significantly, a scientific advisory group said on Tuesday.
The National Research Council's comments are the latest sign that backers of alternative fuels must wait longer for "next-generation" ethanol. Touted as the motor fuel of the future, it has struggled with high production costs and other setbacks.

OVERBEARING BRASILIA AT FAULT IN ETHANOL SHORTAGE
SAO PAULO, Oct 4 (Reuters Breakingviews) - Once seen as a potential supplier of ethanol to the world, Brazil is now itself short. Lack of investment in the past few years and squeezed margins mean biofuel production is not matching demand growth. The industry's predicament is also affecting oil giant Petrobras  and shows the risks of a crop-based fuel market constrained by government policies.
In the past month, the Brazilian government cut the amount of ethanol in the gasoline blend to 20 percent from 25 percent in an attempt to guarantee availability at the pump. But while that conserves ethanol, it is forcing state-owned Petrobras to import gasoline, sometimes paying more than it can sell it for, since it doesn't have enough refining capacity. Imports into Brazil of U.S.-produced ethanol have been rising too.

US CHARGES MAN WITH $9 MLN IN BIOFUEL CREDIT FRAUD
WASHINGTON, Oct 4 (Reuters) - The U.S. Environmental Protection Agency said on Tuesday a Maryland man has been charged with selling $9 million in renewable fuel credits purportedly produced by his company Clean Green Fuel, LLC.
Rodney Hailey has been charged with wire fraud, money laundering, and violation of the Clean Air Act in connection to trade in renewable identification numbers, or RINs, EPA said.

US ALLEGES $9 MLN BIOFUEL SCHEME PAID FOR EXOTIC CARS
WASHINGTON, Oct 4 (Reuters) - A Maryland man has been charged by the federal government for selling $9 million in fraudulent renewable fuel credits and using the money to buy a Ferrari, a Lamborghini, and a Maserati, among other things.
The U.S. Environmental Protection Agency said on Tuesday that Rodney Hailey, the owner of Clean Green Fuel, LLC, has been charged with wire fraud, money laundering, and violation of the Clean Air Act in connection to trade in renewable identification numbers, or RINs, purportedly produced by his company.

FRENCH SUGAR CO-OP EYES EU REFORM WITH 1 BLN DEAL
PARIS, Oct 4 (Reuters) - French sugar co-operative Cristal Union is to buy local rival Vermandoise  in a deal worth nearly 1 billion euros ($1.3 billion), as it gears up for an expected liberalisation of the European sugar market.
The takeover, which would create the second-largest sugar group in France after Tereos and the fifth-largest in the European Union, would help Cristal Union compete in European and world markets once the EU dismantles its sugar quota system later this decade, company officials said on Tuesday.

TOYOTA TO OFFER PLANT-BASED BIOFUEL BY 2020-NIKKEI
Oct 4 (Reuters) - Toyota Motor Corp  said it will commercialize a plant-based biofuel by 2020, produced with a new strain of yeast developed inhouse, the Nikkei business daily reported.
Over the next four to five years the automaker said it will work to develop low-cost techniques to produce the biofuel, the paper said.

ETHANOL SEEN STOKING ARGENTINA'S CORN OUTPUT
BUENOS AIRES, Sept 30 (Reuters) - Five new ethanol plants are set to start up in Argentina over the next two years, requiring about 1.2 million tonnes of corn annually and giving farmers a new market for their grains.
Argentina is the world's No. 2 corn exporter after the United States, but until now it has not harnessed the local grain harvest to make ethanol, relying instead on sugar cane.

GREENERGY DIGS DEEPER INTO WASTE TO MAKE BIODIESEL
LONDON, Sept 29 (Reuters) - Major British independent oil firm Greenergy sees its future as an exploration company, but one that hunts for fuel in piles of stale pork pies and cakes rather than under the ground or from food crops.
The refined oil product wholesaler is still investing in the embattled European Union biodiesel sector, aiming to utilise ever more challenging waste products after abandoning, at least for now, the widely criticised use of virgin vegetable oils.

EU LAWMAKERS CALL FOR GLOBAL GREEN ENERGY TARGETS
STRASBOURG, France, Sept 29 (Reuters) - EU lawmakers recommended on Thursday including a call for global targets on renewable energy and energy efficiency in the European Union's negotiating position for next year's Rio+20 sustainability summit in June.
"We should aim at globally binding targets," said Karl-Heinz Florenz, a member of the European Parliament who helped draft the resolution.

U.S. GIVES $136 MLN FOR ADVANCED BIOFUELS RESEARCH
WASHINGTON, Sept 28 (Reuters) - U.S. university researchers will get $136 million to develop advanced biofuels, including to develop jet fuel, by using tall grasses, woody plants and energy cane, the U.S. government said on Wednesday.
Nearly two-thirds of the money will go towards aviation biofuels projects in the Pacific Northwest, including efforts to develop a regional source of bio-jet fuel for Seattle-Tacoma International Airport.

20111006 1010 Global Market Related News.

Asian Stocks Rise First Day in Five Europe Debt, U.S. Optimism (Bloomberg)
Asian stocks rose for the first time in five days as better-than-expected U.S. economic data and optimism European leaders will contain the region’s debt crisis boosted the earnings outlook for exporters. Toyota Motor Corp. (7203), the world’s biggest carmaker, rose 1.6 percent in Tokyo. Mitsubishi UFJ Financial Group Inc., Japan’s largest listed lender by market value, added 1.9 percent. James Hardie Industries SE, a building-materials supplier that gets almost 70 percent of its sales from the U.S., climbed 7.4 percent Sydney. BHP Billiton Ltd. (BHP), the No. 1 global mining company, gained 2.7 percent as commodity prices advanced. The MSCI Asia Pacific Index rose 1.8 percent to 109.29 as of 9:59 a.m. in Tokyo. About 11 stocks rose for each that fell and all 10 industry groups climbed. The gauge tumbled 16 percent in the third quarter, the biggest drop since 2008, amid concern that Europe’s debt crisis and a U.S. economic slowdown will drag the world back into recession.

Service Industries in U.S. Grew at Slower Pace in September (Bloomberg)
U.S. service industries expanded in September at a slower pace than a month earlier, a sign the recovery is struggling to gain speed. The Institute for Supply Management’s non-manufacturing index fell to 53 from 53.3 in August. The median forecast of 75 economists surveyed by Bloomberg News was for a drop to 52.8. A reading of 50 is the dividing line between expansion and contraction in services, which cover about 90 percent of the economy. Orders picked up, the report showed. The lack of job and income growth, deepening pessimism about the economic outlook in the wake of Europe’s debt crisis, and a slumping stock market may hamper consumers’ willingness to increase their spending. The services reading underscores Federal Reserve Chairman Ben S. Bernanke’s comments yesterday that the recovery will be “somewhat slower” in coming quarters.

S&P 500 Caps Biggest Two-Day Rise Since August (Bloomberg)
U.S. stocks rallied, giving the Standard & Poor’s 500 Index its biggest two-day gain in more than a month, as economic data topped estimates and investors speculated Europe will act to contain the region’s debt crisis. Alcoa Inc. (AA) and Cisco Systems Inc. (CSCO) added at least 2.7 percent to pace gains among companies most-tied to the economy. Financial stocks rebounded as Morgan Stanley jumped 3.4 percent. Monsanto Co. (MON) climbed 5.2 percent as the world’s largest seed company forecast higher-than-expected earnings. Yahoo! Inc. surged 10 percent, the most since 2008, after a report that Microsoft Corp. (MSFT) may make a bid. Apple Inc. (AAPL) gained 1.5 percent, preventing the longest decline since 1998. The S&P 500 advanced 1.8 percent to 1,144.03 at 4 p.m. New York time, rallying 4.1 percent in two days. The Dow Jones Industrial Average added 131.24, or 1.2 percent, to 10,939.95.

Fed Isn’t Repeating Japan Error, Nomura’s Sheard Says: Tom Keene (Bloomberg)
The U.S. has avoided monetary policy missteps that should prevent it from following Japan into a deflationary spiral while Europeans haven’t been so adept, according to Nomura Securities International’s Paul Sheard. “Japan slipped into deflation and stayed there, and that was due largely to policy error,” said Sheard, global chief economist in New York at the unit of Nomura Holdings Inc., in a radio interview on “Bloomberg Surveillance” with Tom Keene and Ken Prewitt. “I don’t think those policy errors are being repeated in the U.S., and I don’t see the U.S. falling into deflation and into a long-term nominal stagnation.” Efforts of the Federal Reserve to keep borrowing costs low have helped stave off concern that the U.S. is starting to look like Japan in the 1990s, when the Bank of Japan struggled to revive the economy, said Sheard, whose firm is one of the 22 primary dealers that trade directly with the U.S. central bank.

Bernanke Signals Political Pressure Wouldn’t Halt More Monetary Easing (Bloomberg)
Federal Reserve Chairman Ben S. Bernanke signaled he’ll push forward with further expansion of monetary stimulus if needed, resisting pressure from Republicans concerned that he’s fanning inflation. Bernanke said yesterday in testimony to Congress’s Joint Economic Committee that the Fed is “prepared to take further action as appropriate” after using unconventional tools to boost growth in August and September. He rejected comments by Senator Jim DeMint of South Carolina and Senator Mike Lee of Utah that record central bank stimulus has spun inflation and the money supply out of control. Some Republicans are trying to remove the half of the Fed’s congressional mandate to achieve “maximum employment,” focusing it only on keeping inflation low. Representative Mick Mulvaney said the Fed chief could legitimately push ahead with more stimulus so long as he keeps price increases in check.

U.S. Legislation Targeting China Yuan Hits Republican Opposition (Bloomberg)
U.S. Senate legislation that would punish China for an undervalued currency ran into opposition from senators and a roadblock by House Speaker John Boehner, who said the bill was “pretty dangerous.” Boehner’s opposition may derail a bill backed by 225 House members, including 61 Republicans. The bill is aimed at forcing China to address what Federal Reserve Chairman Ben S. Bernanke yesterday called a currency policy that’s “blocking what might be a more normal recovery process in the global economy.” In the Senate, Republicans sought an amendment yesterday to make it harder for unilateral U.S. action, something China’s government said this week would risk triggering a trade war and affecting how it overhauls exchange-rate policy. The Obama administration has said it’s reviewing the bill, citing the need to comply with global trade obligations.

ADP Estimates U.S. Companies Added 91,000 Jobs in September (Bloomberg)
Companies in the U.S. added 91,000 jobs in September, according to data from ADP Employer Services. The increase followed a revised 89,000 gain the prior month, Roseland, New Jersey-based ADP said today. The median forecast of economists surveyed by Bloomberg News called for an advance of 75,000. Job gains haven’t been sufficient to bring down the unemployment rate, which has held at or above 9 percent for 26 of the past 28 months. A Labor Department report in two days is projected to show businesses added 90,000 jobs in September, according to the median forecast of economists surveyed. “Employment is likely to languish over the intermediate term until business leaders see an improvement in both actual demand and their demand expectations,” Russell Price, senior economist at Ameriprise Financial Inc. in Detroit, said before the report.

Treasuries Snap Decline as Data May Show Employment Stagnating (Bloomberg)
Treasuries snapped a two-day drop before government reports this week that economists said will show employment isn’t improving enough to lower the jobless rate. Ten-year yields were 21 basis points away from the record low. The central bank plans to sell $8 billion to $9 billion of Treasuries due from January 2012 to July 2012 today, according to the Federal Reserve Bank of New York website. The sales are part of its effort to reduce borrowing costs by cutting holdings of shorter-term debt and buying longer tenors with the proceeds. “The rally isn’t over,” said Tsutomu Komiya, who invests in Treasuries for Daiwa Asset Management Co. in Tokyo, which oversees the equivalent of $120.8 billion and is a unit of Japan’s second-biggest brokerage by market value. “The market expects the Fed to buy more bonds, to do further easing.”

Steve Jobs’s Death Follows 8-Year Battle Against Rare Pancreatic Cancer (Bloomberg)
Apple Inc. (AAPL) co-founder Steve Jobs’s death today at age 56 follows years of health struggles that began in 2003, when he was diagnosed with a rare form of pancreatic cancer. Jobs had a neuroendocrine tumor, which is less aggressive than some other types of pancreatic malignancies. He eventually resigned as chief executive officer on Aug. 24, saying he could “no longer meet my duties and expectations.” Neuroendocrine tumors can grow slowly and be treated successfully with early removal. Those that spread to other organs, such as the liver, can be life-threatening. Without specifying a reason, Jobs had a liver transplant in 2009, a treatment that can prolong the lives of patients with his type of cancer.

Japanese Stocks Rise, Snapping Four-Day Losing Streak, on Europe Optimism (Bloomberg)
Japanese stocks rose for the first time in five days as optimism that Europe will act to contain its debt crisis boosted the earnings outlook for Asian exporters. Sony Corp., Japan’s No. 1 exporter of consumer electronics, rose 2.9 percent. Mitsubishi UFJ Financial Group Inc., Japan’s biggest lender, led banks higher after the International Monetary Fund said Europe is working on plans to shelter banks from the region’s debt crisis. Nissan Motor Co., a carmaker that gets 33 percent of its revenue in the U.S. and Canada, gained 4.1 percent after U.S. economic reports beat estimates. The Nikkei 225 (NKY) Stock Average rose 1.8 percent to 8,535.32 as of 9:44 a.m. in Tokyo. The broader Topix index gained 1.8 percent to 739.24. The gauge lost 10 percent last quarter, the steepest decline since the three months through June 2010, amid slowing U.S. growth and an escalating crisis in Europe.

European Stocks Advance Amid Speculation Policy Makers Will Assist Banks (Bloomberg)
European stocks advanced for the first time in four days amid speculation policy makers are examining measures to shield banks from the region’s sovereign- debt crisis. Dexia SA (DEXB) snapped a four-day plunge after France and Belgium said a “bad bank” will be set up to hold its troubled assets. BNP Paribas SA and Societe Generale (GLE) SA, France’s biggest lenders, climbed more than 8 percent. Rio Tinto Group led mining companies higher. European Aeronautic, Defence & Space Co. rose 5.7 percent after saying 2011 will be a “very good” year. The Stoxx Europe 600 Index advanced 3.1 percent to 224.15 at the 4:30 p.m. close in London, the biggest increase in a week. The gauge had declined 5 percent in the previous three days, leaving it trading at 9.1 times estimated earnings, near the cheapest since March 2009, data compiled by Bloomberg show.

Euro Maintains Losses Amid Prospects for a Rate Cut at ECB Meeting Today (Bloomberg)
The euro held a decline from yesterday against the dollar on speculation signs of a deteriorating economy and debt crisis in the region will prompt the European Central Bank to ease monetary policy today. The 17-nation currency maintained losses as 11 out of 52 economists in a Bloomberg News survey predict the bank’s policy makers will cut borrowing costs. The euro also weakened versus the yen ahead of a report forecast to show no gains in factory orders for August in Germany, Europe’s biggest economy. The New Zealand dollar held a two-day advance against its U.S. counterpart as Asian stocks extended a global rally in equities. “The markets are nervous the ECB might cut rates,” said Kurt Magnus, executive director of currency sales in Sydney at Nomura Holdings Inc., Japan’s biggest brokerage. “The markets are waiting for new news and a new sign of any kind of stimulus from the ECB. I think that’s bearish euro.”

Europe Debt Crisis Poses Global Risk: Geithner (Bloomberg)
U.S. Treasury Secretary Timothy F. Geithner will tell lawmakers that the European financial crisis is increasing the risks to global growth, according to testimony prepared for delivery tomorrow. “Our direct financial exposure to those governments and their financial institutions is quite small, but Europe is so large and so closely integrated with the U.S. and world economies that a severe crisis in Europe could cause significant damage by undermining confidence and weakening demand,” Geithner says in testimony to the House Financial Services Committee. Geithner calls for a more “powerful financial backstop” for European banks and government borrowers, one that is “conditioned on policy actions that credibly address the underlying causes of concern.”

European Services, Manufacturing Contract (Bloomberg)
Euro-area services and manufacturing output contracted more than estimated in September, adding to signs of a deepening slowdown as governments struggle to contain the region’s debt crisis. A composite index based on a survey of purchasing managers in both industries fell to 49.1 in September from 50.7 in the previous month, London-based Markit Economics said today. That is less than an initial estimate of 49.2 published on Sept. 22. The index fell below 50, indicating contraction, for the first time in more than two years. European governments are seeking ways to contain the region’s worsening debt crisis, which threatens to push the 17- nation economy back into a recession. Moody’s Investors Service yesterday cut Italy’s credit rating for the first time in almost two decades and European economic confidence slumped more than economists forecast in September.

U.K. Economy Second-Quarter Growth Estimate Cut as Consumer Spending Falls (Bloomberg)
U.K. economic growth slowed more than initially estimated in the second quarter as consumer spending fell the most in more than two years, adding to pressure on Bank of England policy makers to provide more stimulus. Gross domestic product rose 0.1 percent from the first quarter instead of the 0.2 percent previously published, the Office for National Statistics said today in London. Consumer spending plunged 0.8 percent, the most since the first quarter of 2009. On the year, GDP rose 0.6 percent. A separate report showed services growth unexpectedly accelerated in September. The data comes as Bank of England policy makers meet to decide whether they’ll revive their bond-purchase program as the government’s fiscal squeeze and Europe’s debt crisis harm growth prospects. Chancellor of the Exchequer George Osborne this week announced a plan to aid credit-starved small companies.

Don't Bet Against the Euro Surviving Debt Crisis (Bloomberg)
Investors betting against the euro- area surviving its debt crisis in one piece may be overlooking one thing: the will of politicians to hold it together. German Chancellor Angela Merkel is intensifying her defense of the currency. French President Nicolas Sarkozy says there’s no alternative to channeling aid to Greece without risking the kind of cataclysm set off by the 2008 collapse of Lehman Brothers Holdings Inc. Greek Premier George Papandreou this week proposed 6.6 billion euros ($8.7 billion) of fresh austerity measures in a recession headed into a fourth year. The euro is “a political project,” said Erik Nielsen, global chief economist at UniCredit Group in London. “The market may not have believed them, but leaders have repeatedly said they will do whatever it takes to keep it together.”

Italy Rating Cut Three Levels by Moody’s on Debt Crisis, Matching S&P Move (Bloomberg)
Italy’s credit rating was cut by Moody’s Investors Service for the first time in almost two decades on concern that chronically weak growth will make it difficult to reduce the region’s second-largest debt while fallout from the region’s debt crisis boosts financing costs. Moody’s lowered Italy’s rating three levels to A2 from Aa2, with a negative outlook, the New York-based company said in a statement yesterday. The action comes after Standard & Poor’s downgraded Italy on Sept. 20 for the first time in five years. Italy was last cut by Moody’s in May 1993. Moody’s also said that all European countries with ratings below the top mark of AAA may face downgrades as many euro-area governments are facing “a profound loss” in investor confidence as policymakers have failed to stop debt-crisis contagion. Italy’s borrowing costs have fallen from euro-area highs in August after the European Central Bank began buying its bond to stop the slide in the country’s debt.

India’s Budget-Deficit Target May Be ‘Difficult’ to Meet, Mukherjee Says (Bloomberg)
India may find it hard to meet its budget-deficit target in the current fiscal year, Finance Minister Pranab Mukherjee said after the government last week decided to sell more debt. “It is difficult to maintain the ceiling,” Mukherjee told the Bloomberg UTV television channel in Mirati, his village in the Indian state of West Bengal, referring to the budget- shortfall goal. “I can’t say how I will be able to maintain it now without looking at the cash flows,” he said in the interview that was broadcast yesterday. India’s budget gap may exceed the government’s estimate as tax revenue may fall short because of slowing economic growth, said Anubhuti Sahay, a Mumbai-based economist at Standard Chartered Plc. Ten-year bond yields in India have climbed to the highest level in three years on concern demand for existing securities will decrease as the government boosts debt sales.

20111006 1009 Global Commodities Related News.

Commodities Climb From 10-Month Low as Bernanke Vows Steps to Boost Growth (Bloomberg)
Commodities rebounded from the lowest in 10 months after Federal Reserve Chairman Ben S. Bernanke said that the central bank may take further steps to sustain an economic recovery. The Standard & Poor’s GSCI index of raw materials rose 2.8 percent to settle at 592.03 at 3:48 p.m. New York time, the biggest gain since Sept. 27. Energy and agricultural prices led the rally. Crude oil had the biggest increase since May, while wheat advanced the most in two months. Yesterday, the commodity gauge touched 572.92, the lowest since Nov. 26. Bernanke affirmed a plan to keep interest rates low at least through mid-2013. The Fed may reduce the rate paid on banks’ reserve deposits or buy more securities, he said. Today, U.S. data on payrolls and service industries topped forecasts by analysts. The MSCI All-Country Index of equities gained as much as 2.1 percent.

Corn (CME)
US corn futures rallied, bouncing on strength in external financial markets and supportive demand outlooks. Concerns about the global economy take a back seat, and that opened the door for a corrective bounce in commodities, with optimistic outlooks for increased export demand helping fuel higher price sentiment, analysts say. Nevertheless, traders say advances were more reflective of oversold technical conditions, overdue for a bounce with bargain hunting by processors and ethanol plants aiding the recovery, analysts add. CBOT Dec corn settled up 17 3/4c at $6.05 1/2/bushel.

Wheat (CME)
US wheat futures end higher on spillover strength from corn and uncertainty about US crops. Corn rallied amid short-covering and a private group's crop projection, adding wheat in the process. Forecasts for rain in the parched southern Plains is negative for prices, but North America Risk Management Services analyst Jerry Gidel says it's an open question as to whether the rains would be enough to help farmers struggling to plant winter wheat. "At this point, keep an eye on the Amarillo rain gauge," he says. December CBOT wheat jumps 21 1/4c to $6.25 1/4 a bushel, December KCBT climbs 13 1/4c to $6.99 3/4 and December MGEX gains 13 3/4c to $8.76 1/2.

Rice (CME)
US rice futures end mostly higher on outside support and weather problems that threaten global supplies. Market pulled higher by rally in other grains, as traders covered short positions following a recent swoon. Price Futures Group Vice President Jack Scoville adds the market has some supportive fundamentals, including typhoon damage in the Philippines, flooding in Vietnam and "sky high" prices in China. CBOT Nov rice ends up 17c, or 1.1%, to $16.01 1/2 per hundredweight.

GRAINS-Corn, wheat rise on economic hopes, Chinese demand
SINGAPORE, Oct 5 (Reuters) - U.S. corn rose more than 1 percent, while soybeans recovered from a near one-year low as the markets took a breather on hopes that European leaders were stepping up efforts to contain the region's debt woes.
"Once the financial markets settle, the commodity markets will also settle, but I think over the next few months it's going to be very volatile," said Abah Ofon, an analyst with Standard Chartered Bank in Singapore.

ADM to expand Brazil soybean crushing plant
SAO PAULO, Oct 4 (Reuters) - U.S.-based multinational Archer Daniels Midland Co  is expanding soybean crushing capacity by 50 percent at its plant in Santa Catarina state in southern Brazil, an ADM director said.
The expansion is part of ADM's plans to operate a biodiesel plant adjacent to its existing crusher in the state. The biodiesel unit is expected to begin operation in 2012.

Duties to limit Ukrainian grain exports - AgMin
KIEV, Oct 5 (Reuters) - Ukrainian grain exports may stall in the current marketing season at the previous season's level if export duties on grains remain in place, Agriculture Minister Mykola Prysyazhnyuk told Reuters on Wednesday.
"We need to export 25 million tonnes but if export duties remain in place, we will export about 13 million tonnes, maybe a little bit more," he said.

Vietnam ups 2011 rice export forecast to 7.5 mln T
HANOI, Oct 5 (Reuters) - Vietnam's rice exports this year could reach a record of 7.5 million tonnes, the Agriculture Ministry said, revising its previous projection of 7.3 million tonnes.
The new export volume would generate $3.72 billion in revenue, also up from an earlier projection of $3.55 billion, the ministry said in a report seen by Reuters on Wednesday.

Manila sees no need to buy rice, to reassess typhoon damage
MANILA, Oct 5 (Reuters) - The Philippines has ample rice stocks to cover damages from two strong typhoons that hit last week and has no urgent need for imports, a senior official said, as the agriculture department reviews whether damage estimates may have been inflated.
The typhoons damaged about 760,000 tonnes of unmilled rice yet to be harvested, mostly from the central Luzon region, equal to two weeks of national consumption and more than 11 percent of the expected rice harvest in the fourth quarter, Agriculture Undersecretary Antonio Fleta said.

China corn imports may far exceed USDA forecast
CHICAGO, Oct 4 (Reuters) - China may need to import five times as much corn as the U.S. government expects over the next year, an industry group said on Tuesday, setting the stage for another potentially explosive year for prices.
The U.S. Grains Council, which just completed a crop tour in China, said the record harvest won't be enough to meet demand in the world's most populous nation, where expanding consumption of meat is undermining decades of self-sufficiency and helped fuel the record surge in prices earlier this year.

Canada canola, wheat crop grows less than expected
Oct 4 (Reuters)- Canadian farmers expect to produce more canola and wheat in 2011 than last year due to favorable late-season conditions, according to a Statistics Canada survey of farmers released on Tuesday.
Canola production is estimated to reach 12.9 million tonnes, 1.2 percent above 2010 levels but below the 13.8 million tonnes estimated by grain traders and analysts in a Reuters survey. All-wheat production is seen hitting 24.2 million tonnes, up 4.3 percent  from 2010 levels but below the average market estimate.

Russia harvests 89.5 mln T grain by Oct 4 - AgMin
MOSCOW, Oct 4 (Reuters) - Russia harvested 89.5 million tonnes of grain by bunker weight by Oct. 4 from 38.9 million hectares, or 88 percent of the sown area, the Agriculture Ministry said on Tuesday.
The ministry did not provide a comparison to a year-ago volume, but last year, when the country was hit by a severe drought, it said farmers harvested 60.96 million tonnes of grain from 37.96 million hectares by Oct. 5, 2010.

India has no plans to change palm tax, rice ready -ministers
JAKARTA, Oct 4 (Reuters) - India has no plans to change its import duties for palm oil and products, and has sufficient rice supplies to export to Indonesia without need for a government-to-government scheme, trade ministers from both countries said on Tuesday.
India's Trade Minister, Anand Sharma, is in Jakarta for trade talks with his Indonesian counterpart, Mari Pangestu.

Ukraine grain harvest at 40.76 mln T as of Oct 3
KIEV, Oct 4 (Reuters) - Ukraine's farms have harvested 40.76 million tonnes of grain from 82 percent of the sowing area as of October 3 against 35.6 million tonnes at the same date in 2010, the Agriculture Ministry said on Tuesday.
The ministry said in a report the grain yield averaged 3.21 tonne per hectare this year compared to 2.65 tonne in 2010 when weather extremes curtailed harvests.

Corn in Chicago Climbs 0.3% to $6.0725 a Bushel; Wheat, Soybeans Advance (Bloomberg)
Corn for December delivery rose 0.3 percent to $6.0725 a bushel on the Chicago Board of Trade at 10:24 a.m. in Melbourne. Soybeans for November delivery gained 0.3 percent to $11.6675 a bushel. December-delivery wheat advanced 0.2 percent to $6.2625 a bushel

Morocco Suspends Soft Wheat, Durum Import Duty (CME)
The Moroccan government has announced the suspension of import duties for soft wheat as well as durum, according to a notice on the country's ministry of economy and finance website. According to the announcement, all duties will be suspended on soft wheat imports between Nov. 15 and Dec. 31. For durum imports, all duties will also be suspended from Oct. 1 until Dec. 31. The ministry attributed the suspension in soft wheat import duties to volatile price levels internationally which are linked to fears of a slowdown in demand due to the global financial crisis. Also, quality problems of domestically harvested wheat meant a suspension in duties would allow enough supplies for the entire North African country. At present, the country stipulates import tariffs of 135% and 80% for soft wheat and durum respectively.

India May Consider Hike In Minimum Buy Price For Wheat In 10-15 Days - Farm Minister (CME)
India's federal cabinet will likely consider a higher minimum purchase price for wheat for this year within a fortnight, Farm Minister Sharad Pawar said. The government raised the procurement price of wheat by INR200 per metric ton to INR11,200 per ton during last year. However, Pawar didn't specify the amount of hike for this year and said that decision will be taken by cabinet. Wheat -- India's main winter season crop -- is usually sown in November and harvested around March-April. Higher procurement prices are expected to maintain or even increase acreage by assuring farmers of a minimum return from the next crop. Prolonged monsoon rains will help India's wheat crop during the winter season and output is expected to be at least at last year's record level of 85.93 million tons, Indu Sharma, director of India's Directorate of Wheat Research said Wednesday. Pawar said cabinet may also consider a one-time higher buy price for rice purchases.
He also said sugar output in India, the world's second-largest producer, is likely to be at least 25.5 million tons during the current marketing year that started Oct. 1.

Cold, Snowy Winter Forecast In Western Canadian Prairies (CME)
Harvest operations are wrapping up across western Canada under reasonably good weather conditions for the most part. While the bias should remain on the warm side through the autumn, the Prairies can expect to see a cold, snowy winter, according to one meteorologist. The early indications "suggest we'll see another winter of colder-than-usual conditions in the western Prairies," said Drew Lerner, president of Kansas City-based World Weather Inc. He said the coldest bias would be in Alberta and Saskatchewan, with Manitoba looking average from a temperature standpoint. "Manitoba will have its moments of cold, but they won't be consistent," said Lerner. Looking at snowfall, "La Nina is back, and I think we will see above average snowfall, especially in Alberta and southern Saskatchewan," said Lerner. He said the western part of Manitoba could also see above-average snowfall, but other parts of the province, including the Interlake, are forecast to see below-average snowfall.
The ground across most of western Canada is much drier heading into the winter then it was a year ago, which will lessen the spring flood potential, said Lerner. "Hopefully, it will be a better start to the season," he added. The 2012 growing season is still a long time away, but Lerner said one factor to watch was whether or not the La Nina conditions will persist. While he cautioned that there are many other unknown factors that will affect the weather next year, "if La Nina sticks around for the entire growing season next year, dryness could be more of an issue in the U.S. and some of that could work its way into Manitoba and southeastern Saskatchewan."

Markets bounce inline with commdities rebound
LONDON, Oct 5 (Reuters) - ICE sugar, coffee and cocoa futures bounced, in line with global stocks and other commodities including oil, as markets steadied after Europe's finance ministers agreed to safeguard euro zone banks from the spreading sovereign debt crisis.
A bearish target at 22.33 cents per lb remains intact for New York sugar  as indicated by its wave pattern and a bearish double-top, according to Reuters technical analyst Wang Tao.

Vietnam cuts 2011 coffee export forecast to 1.12 mln tonnes
HANOI, Oct 5 (Reuters) - Vietnam, the world's top robusta producer, has cut its annual coffee export projection for calendar year 2011 to 1.12 million tonnes, or 18.7 million bags, from 1.17 million tonnes, the agriculture ministry said.
August's export volume of 36,000 tonnes was below previous forecasts, leading to the downward adjustment for the whole of 2011, the ministry said in a report seen on Wednesday.

Honduras ends 2010/11 with jump in coffee exports
TEGUCIGALPA, Oct 4 (Reuters) - Honduras ended its 2010/11 coffee harvesting season with 22.3 percent more exports than during last year's cycle as the government backs an aggressive expansion of coffee growing areas, the national coffee institute Ihcafe said Tuesday.
September coffee exports jumped 74 percent from the same month in 2010 reaching 39,868 60-kg bags, Ihcafe said.

West Africa set for another big cocoa season
DAKAR, Oct 4 (Reuters) - West African plantations will churn out huge amounts of cocoa during the early months of this season thanks to near-ideal growing weather, and the full harvest is likely to rival last year's record volumes.
The region produced a record of nearly 3.2 million tonnes of cocoa during the 2011-12 season that just ended, raising its share of the global market to about 75 percent from two-thirds.

Australia Newcastle coal exports up 15 pct in week
Oct 5 (Reuters) - Thermal coal shipments from Australia's Newcastle port rose 15 percent in the week ending Oct. 3 to 2.377 million tonnes, recovering after bad weather slowed exports the previous week, the Newcastle Port Corporation said on its website on Wednesday.    
The vessel queue at the port fell to one ship from four, and the average waiting time for vessels dropped slightly to just over seven days.

Euro Coal - prices slide on Greek default fears
LONDON, Oct 4 (Reuters) - Prompt physical coal prices fell further on Tuesday as growing fears for the world economy and the possibility of a default by debt-stricken Greece took their toll.
Prices were down by around $2.00 a tonne due to the worsening economic backdrop.

Brent slips below $101 on Greek debt woes,Goldman outlook cut
SINGAPORE, Oct 4 (Reuters) - Brent crude slipped below $101, squeezed by growing fears that a Greek debt default could spread across the banking system and threaten the global economy.  
"I think more people are getting more afraid," said Tony Nunan, a Tokyo-based risk manager at Mitsubishi Corp.

Sri Lanka to call tenders for oil exploration in 5 blocks -minister
COLOMBO, Oct 5 (Reuters) - Sri Lanka will soon call tenders for oil exploration in five blocks in the island nation's north western offshore Mannar Basin, where Cairn India Ltd.  has discovered a gas deposit, the country's petroleum minister said on Wednesday.
"We will call tenders soon for the five blocks. It will be in couple of months," Petroleum Industries Minister Susil Premajayantha told Reuters, a day after he said Sri Lanka could start commercial production of natural gas within 18 to 24 months.

Crude Oil Trades Near Four-Day High on Shrinking Supplies, U.S. Job Growth (Bloomberg)
Oil traded near a four-day high in New York as investors bet that shrinking crude stockpiles and signs of an economic recovery in the U.S. indicate fuel demand may increase in the world’s biggest consumer of the commodity.  West Texas Intermediate futures were little changed after climbing the most in almost five months yesterday. Inventories fell 4.68 million barrels last week, a report from the Energy Information Administration showed. A gain of 1.5 million barrels was expected, according to a Bloomberg News survey. U.S. companies added more jobs than expected in September, data from ADP Employer Services showed. German Chancellor Angela Merkel said she is ready to discuss aid for European banks.
“A surprisingly positive U.S. EIA inventory report provided additional upside for WTI prices,” Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd. in Melbourne, said in a note today. “Commodity prices improved as European authorities appear to be stepping up support for European banks and U.S. private sector employment data was better than expected.”

Iron Ore-Spot prices seen near 3-month lows, China off
SINGAPORE, Oct Iron Ore-Forward swaps jump in thin volumes
SINGAPORE, Oct 5 (Reuters) - Prices of iron ore forward swaps rose in light volumes as the market looked to another listless session on Wednesday with top iron ore importer China still away for a week-long public holiday.
Swaps cleared by the Singapore Exchange  climbed on Tuesday with the November contract  gaining more than $7 to $155 a tonne, although traders said the thin volumes had exaggerated the price rises.

Nippon Steel unit to shift production to Thailand -Nikkei
Oct 5 (Reuters) - Suzuki Metal Industry Co , a key spring materials unit of Japan's Nippon Steel Corp , will move production from a domestic plant to Thailand, business daily Nikkei reported.
Suzuki Metal makes spring wire used in automobile engine valves and controls roughly 45 percent of the world market, the paper said.

Gold-Dollar Link Signals Longer Bullion Slump This Year: Chart of the Day (Bloomberg)
Gold may extend its slide from a record as Europe’s sovereign-debt crisis spurs demand for dollars, eroding the appeal of the metal as an alternative, according to John Stephenson at First Asset Management Inc. The CHART OF THE DAY shows gold plunged 11 percent last month, the most since 2008, as Europe’s worsening fiscal crisis sent the U.S. Dollar Index to an seven-month high of 78.863 on Sept. 26. The precious metal, which reached a record $1,923.70 an ounce on Sept. 6, may drop to $1,450 by Dec. 15, while the dollar index rallies to 89, the highest since March 2009, said Stephenson, who helps manage $2.6 billion. “The fear is Europe,” Stephenson said in a telephone interview from Toronto. “The dollar will go up significantly as we are seeing people liquidating other assets and buying the dollar and dollar-backed assets. Europe is nowhere near to finding a real solution.”

Baltic index falls, China slowdown weighs
LONDON, Oct 4 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, stayed negative for a sixth session in a row on Tuesday as sluggish cargo activity and worries for the world economy weighed on sentiment.  Brokers said growing vessel supply, which was outpacing commodity demand, was set to cap dry bulk freight rate gains in the coming months with economic uncertainty adding to headwinds.

20111006 1008 Soy Oil & Palm Oil Related News.

Soybeans (CME)
US soybean futures end higher, driven by a broad-based recovery in commodity markets. Easing concern over the state of the world economy encouraged traders to add some risk, particularly with signs of stability in external financial markets, analysts say. Soy futures were viewed as oversold after steep losses dropped prices near one-year lows. However, harvest pressure and a lack of demand emerging from recent price breaks limited advances, analysts add. CBOT Nov soy end up 3 3/4c at $11.63 3/4/bushel.

Soybean Meal/Oil (CME)
Soy product futures bounced in unison with soybeans, supported by traders returning to commodity markets after pressure in external financial markets eased. The absence of fresh demand news limited advances, with traders viewing the bounce as more of a correction from recent losses than any new fundamental development, analysts say. CBOT Dec soymeal finished up $3.10 at $305.20/short ton, and Dec soyoil end up 0.20 cents at 49.20 cents/pound.

Short-selling drives palm to one-year low; rebound likely
KUALA LUMPUR, Oct 5 (Reuters) - Malaysian palm oil fell to their lowest level in a year on short-selling, but traders said prices could bounce back on hopes that Europe's debt woes may be contained and a global economic recession avoided.
"Let's see if this palm oil firm has enough bullets to maintain it's selling. It whacked and the market hit a low of 2,789 ringgit but bounced up just as fast," said a trader with a foreign commodities firm.

Argentina 2011/12 soybean area seen up 3 pct-attache
Oct 4 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Argentina:
"Soybean area for MY2011/12 is reduced to 19 million hectares indicating only a slight increase of about 3 percent from the previous year as more land is expected to be planted with corn," it said.