20111201 1832 FCPO EOD Daily Chart Study.

FCPO closed : 3058, changed : +40 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : falling lower, seller testing market.
Support : 3050, 3020, 2970, 2950 level.
Resistance : 3070, 3100, 3150, 3200, 3250 level.
Comment :
FCPO closed recorded gains after 7 consecutives days of declines with reducing volume changed hand. Overnight soy oil ended little higher and currently trading firmer while crude oil price currently registering gain trading above USD100 per barrel.
Improved global equity markets after 6 major central bank coordination moves to tame a liquidity crunch for European banks by providing cheaper dollar funding and speculation of lower production level due to heavy rains lifted FCPO price to trade higher.
Daily chart formed an up doji bar candle positioned in between middle and lower Bollinger band after market opened higher, traded side way within 32 points range bound market and closed near opening price.
Chart wise remained suggesting a side way range bound market development possibly testing higher 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.

20111201 1744 FKLI EOD Daily Chart Study.

FKLI closed : 1494.5, changed : +17 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : rising, buyer testing market.
Support : 1491, 1485, 1477, 1470 level.
Resistance : 1500, 1505, 1515, 1530 level.
Comment :
FKLI closed rallied higher with higher better volume traded doing 9 points premium compare to cash market that closed recorded gains. Overnight U.S. market closed recorded massive gains and today Asia markets ended substantially higher while European markets currently trading mostly lower after overnight severe gains.
Overnight six central banks cut the cost of emergency dollar funding for European banks and China cuts banks reserve ratio requirement plus Japan plans 4th extra budget news lifted global markets to trade substantially higher. China also recorded weaker manufacturing data since 2009.
Daily chart formed a down doji bar candle with long upper and lower shadow closed near upper Bollinger band level after market opened gap up, surged higher triggered some short covering and slide downwards lower before recovered partially to closed off the low of the day.
Technical study still suggesting a side way range bound market development possibly having pullback correction with MACD indicator having positive crossed up.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

20111201 1708 Regional Markets EOD Daily Chart Study.

 DJIA chart reading :  pullback correction little downside biased.

 Hang Seng chart reading : pullback correction little downside biased.

KLCI chart reading : side way range bound.

20111201 1607 Global Market & Commodities Related News.

Asian shares hit two-week high on c.banks' liquidity move
TOKYO, Dec 1 (Reuters) - Asian shares rallied to two-week highs, building on strong global gains after the world's six major central banks moved to tame a liquidity crunch for European banks by providing cheaper dollar funding.
"It's clearly a risk-on day given everything that happened overnight," said Su-Lin Ong, senior economist at RBC Capital Markets.

China Stocks Rally Most in 18 Months on Reserve Ratio Cut; Rate Swaps Fall (Bloomberg)
China’s stocks rose the most in five weeks, the yuan gained and interest-rate swaps fell as lenders’ reserve-ratio requirement was cut for the first time since 2008 and six central banks took action on Europe’s debt crisis. The Shanghai Composite Index climbed 2.3 percent to 2,386.86 at the close, while the Hang Seng China Enterprises Index of Chinese stocks traded in Hong Kong rallied 8.3 percent. Financial companies and commodity producers advanced the most in Shanghai, with China Life Insurance Co. rising more than 7 percent and Jiangxi Copper Co. (600362) jumping the most in six months. The yuan advanced the most in almost four weeks while interest- rate swaps dropped to a one-year low. “This RRR cut is very positive for the banks,” Daphne Roth, Singapore-based head of Asian equity research at ABN Amro Private Bank, said in a telephone interview. “They timed it with the other central banks to inject liquidity into the system” in a move that will help spur a rebound for stocks.

China Manufacturing Weakest Since 2009 (Bloomberg)
China’s manufacturing recorded the weakest performance since the global recession eased in 2009, underscoring the case for monetary stimulus as Europe’s crisis weighs on the world’s second-largest economy. A purchasing managers’ index compiled by the China Federation of Logistics and Purchasing slid to 49 in November, lower than all but two of 18 forecasts in a Bloomberg News survey. Readings below 50 signal a contraction. Separate reports showed slowing retail sales and an industrial slump in Australia, which relies on China as its biggest export customer. Premier Wen Jiabao is shifting policy gears as Europe’s woes combine with a domestic real-estate slowdown to impair the outlook for growth, with China’s central bank yesterday lowering lenders’ reserve ratios. Asian nations from China to India to South Korea will cut key interest rates next year as the global economy deteriorates, Goldman Sachs Group Inc. (GS) predicted today.

Fed Dollar-Funding Cut Shows Limits of Action (Bloomberg)
The Federal Reserve-led global effort to ease borrowing costs for financial firms shows both the central bank’s power to jolt markets -- and the limits of its ability to alleviate the European debt crisis. Stocks rallied worldwide, commodities rose and yields on most European debt fell after the Fed and five other central banks yesterday cut the cost of emergency dollar loans to banks outside the U.S. At the same time, the action falls short of more-drastic moves that central banks are reluctant to take, including purchases or guarantees of countries’ bonds. Fed Chairman Ben S. Bernanke and his counterparts are revisiting their playbook from the U.S. housing-induced financial crisis that started in 2007 to cushion markets and economies from Europe’s fiscal turmoil today. Yesterday’s move deals with the consequences of the crisis without addressing the causes, said John Ryding, chief economist at RDQ Economics LLC.

Japan to Compile Fourth Extra Budget (Bloomberg)
Japan plans a fourth extra budget, a step unprecedented since postwar reconstruction, to help shore up a rebound that’s under threat from a surge in the yen, Europe’s crisis and Thai floods that have disrupted production. Prime Minister Yoshihiko Noda today ordered the measure, which will probably be at least 2 trillion yen ($26 billion), Finance Minister Jun Azumi told reporters in Tokyo. The step won’t require the sale of deficit-covering bonds, he said. Japan has already allocated 18 trillion yen in three packages since the record earthquake in March. The plan is Japan’s latest effort to secure its recovery, building on efforts including 15 trillion yen in asset purchases by the central bank and record amounts of yen sales to counter the currency’s surge. Nissan Motor (7201) Co. Chief Executive Officer Carlos Ghosn said yesterday his company will gradually shift production abroad because of Japan’s challenges.

FOREX-Euro takes breather after rally; Aussie dips
SINGAPORE, Dec 1 (Reuters) - The euro stabilised on Thursday after rallying the previous day as major central banks acted together to ease a credit squeeze stemming from the euro zone's debt crisis, while the Australian dollar gave back some of its hefty gains.  
"It may be effective in alleviating some of the excessive tensions in the money market. But the market still hasn't been shown any convincing steps aimed at solving the (euro zone's) debt problems," said Masahide Sato, vice president at Mizuho Corporate Bank's forex division in Tokyo.

Dutch unhappy with Indonesia palm tax move
NUSA DUA, Indonesia Nov 30 (Reuters) - Palm oil plants in Europe will suffer from Indonesia's cut in export taxes in favour of refined palm oil over the crude grade, which will cut supplies of the crude feedstock, a top industry official told Reuters on Wednesday.
Frans Claassen, General Manager of the Dutch Product Board of Margarine, Fats and Oils (MVO) said the industry body had asked its government to bring up the issue with Jakarta this week at a bilateral meeting on the Indonesian island of Lombok.

Wheat climbs 1.4 pct on short-covering, liquidity move
SINGAPORE, Dec 1 (Reuters) - U.S. wheat jumped 1.4 percent, while soybeans and corn rose for a fourth straight session, supported by the world's major central banks' move to tame a liquidity crunch for European banks by providing cheaper dollar funding.
"It is perhaps some more short-covering by funds which are very short in wheat and today is the first day of the month," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne. "Corn and soy are trying to catch up while wheat is certainly the leader."

Argentine soy crop seen at 52 mln T - industry
BUENOS AIRES, Nov 30 (Reuters) - Argentina's 2011/12 soy crop should reach 52 million tonnes, the head of the Acsoja industry group said on Wednesday, matching the latest forecast by the U.S. Department of Agriculture (USDA).  
Argentina is the world's third-biggest soy exporter and the top provider of soyoil and soymeal. The country's farmers have planted more than half of this season's

Colombia coffee growers see long-term weather issues
BOGOTA, Nov 30 (Reuters) - Colombian coffee growers must be ready to face more frequent bad weather in the long-term while a tree renovation program should guarantee production at historical averages, the coffee federation said on Wednesday.
The world's top producer of high-quality Arabica faces a third consecutive year of lower-than-expected coffee production in 2011 as bad weather, fungus and a tree renovation program keep output below historic averages of 11 million 60-kg bags.

Russia could harvest 97 mln T grain in '12-SovEcon
MOSCOW, Nov 30 (Reuters) - Russia could harvest around 97 million tonnes of grain next year, equivalent to the 2009 crop which was one of post-Soviet Russia's largest, a leading Russian analyst said on Wednesday.
The forecast was based on a winter grain harvest forecast of 45.5 million tonnes -- including 39.5 million tonnes of winter wheat -- as well as prevailing weather and multi-year averages.

Bumper EU maize crop to cut import needs
HAMBURG, Nov 30 (Reuters) - The European Union is expected to have harvested much more maize (corn) this year, which will greatly reduce EU maize import requirements in coming months, analysts said on Wednesday.
"The signs are the EU has gathered an excellent maize crop with dry weather in parts of Europe in past weeks helping harvest work," said Claus Keller, grains analyst at German commodity analysts FO Licht.

Cuba aims to boost sugar yields - minister
LONDON, Nov 30 (Reuters) - Cuba aims to boost sugar production yields by 15-20 percent a year by 2016, exceeding 45 tonnes per hectare of cane, Cuban Vice-Minister for Sugar Lourdes Castellanos Jimenez said on Wednesday.
She told the annual International Sugar Organization (ISO) seminar that Cuba aimed to boost sugar production to around 2.5 million tonnes by 2016.

Brent stays above $110, Europe worries cap prices
SINGAPORE, Dec 1 (Reuters) - Brent crude traded above $110 for the third session after the world's major central banks moved to tame a liquidity crunch for European banks, but concerns about slower demand capped prices and offset any gains due to Iran.
"The pressure on Brent is the weak economy in Europe. We are not sure if we are going to see significant growth in oil demand. It could be remain flat for a few years," said Tony Regan, analyst at Tri-Zen Capital in Singapore.  

China primary aluminium output to rise 12 pct in 2012 -Antaike
ZHUHAI, China, Dec 1 (Reuters) - China faces a surplus of 250,000 tonnes of primary aluminium in 2012 as smelters expand low-cost capacity, a senior analyst at state-backed research firm Antaike said on Thursday.
China's aluminium production may rise 12 percent on the year to 21.95 million tonnes next year, above the 11.3 percent growth rate forecast for 2011 and the year's 19.6 million tonne production, Yao Xizhi told an industry conference in Zhuhai, Guangdong province.

China aluminium capacity to rise 60 percent by 2015
ZHUHAI, China, Nov 30 (Reuters) - China's annual production capacity of primary aluminium may rise by 60 percent in the next four years as smelters build new facilities in resource-rich provinces, a director at a state-backed industry association said on Wednesday.  
Hu Changping of the China Nonferrous Metals Industry Association said capacity would jump above 40 million tonnes by 2015 from 25 million tonnes forecast for the end of 2011.

Q1 Metals demand from German carmakers to increase
LONDON, Nov 30 (Reuters) - Demand for steel and metals from German carmakers will increase in the first quarter next year as car sales to developing countries continue to grow, industry sources told Reuters.
The outlook for the rest of 2012 however remains uncertain as weakening consumer confidence in Europe and a growth slow down in China may hit sales later next year.

LME copper retreats after China PMI, Shanghai limit up
SINGAPORE, Dec 1 (Reuters) - London copper futures edged lower after rising the most in a month in the previous session as poor Chinese manufacturing data trimmed some of the optimism spurred by a move by major central banks to aid distressed European lenders.
"After the big gains yesterday, this somewhat weaker Chinese number is prompting a little bit of profit taking," Nick Trevethan, senior commodities strategist at Australia and New Zealand Bank, said referring to Thursday's losses on LME.

China primary aluminium output to rise 12 pct in 2012 -Antaike
ZHUHAI, China, Dec 1 (Reuters) - China faces a surplus of 250,000 tonnes of primary aluminium in 2012 as smelters expand low-cost capacity, a senior analyst at state-backed research firm Antaike said on Thursday.
China's aluminium production may rise 12 percent on the year to 21.95 million tonnes next year, above the 11.3 percent growth rate forecast for 2011 and the year's 19.6 million tonne production, Yao Xizhi told an industry conference in Zhuhai, Guangdong province.

METALS-LME copper retreats after China PMI, Shanghai limit up
SINGAPORE, Dec 1 (Reuters) - London copper futures edged lower on Thursday after rising the most in a month in the previous session as poor Chinese manufacturing data trimmed some of the optimism spurred by a move by major central banks to aid distressed European lenders.  
"After the big gains yesterday, this somewhat weaker Chinese number is prompting a little bit of profit taking," Nick Trevethan, senior commodities strategist at Australia and New Zealand Bank, said referring to Thursday's losses on LME.

PRECIOUS-Gold hits 2-week high on gains in equities, euro
SINGAPORE, Dec 1 (Reuters) - Gold hit a 2-week high on Thursday as gains in equities and the euro prompted buying from speculators after major central banks took coordinated action to prevent the euro-zone debt crisis from igniting a global economic meltdown.
"Gold is up alongside other risk assets. Sentiments are positive after the central banks' action and the huge rally in Wall Street last night," said Ong Yi Ling, an analyst at Phillip Futures in Singapore.

Gold hits 2-week high on gains in equities, euro
SINGAPORE, Dec 1 (Reuters) - Gold hit a 2-week high as gains in equities and the euro prompted buying from speculators after major central banks took coordinated action to prevent the euro-zone debt crisis from igniting a global economic meltdown.
"Gold is up alongside other risk assets. Sentiments are positive after the central banks' action and the huge rally in Wall Street last night," said Ong Yi Ling, an analyst at Phillip Futures in Singapore.

20111201 1104 Global Market & Commodities Related News.

GLOBAL MARKETS-Asian shares gain on c.banks liquidity move
TOKYO, Dec 1 (Reuters) - Asian shares extended gains on Thursday after the world's six major central banks moved to tame a liquidity crunch for European banks by providing cheaper dollar funding.
"We see this move as bullish risk as it is more of a precautionary USD liquidity injection to be used in the uncertain months ahead, as opposed to a response to an already-existing USD shortage," Nomura analysts Stanley Sun and Charles St-Arnaud wrote in a note.

Asian Stocks Jump as China Cuts Reserve Ratio, Central Banks Act on Crisis (Bloomberg)
Asian stocks (MXAP) jumped, with the regional index set for its biggest gain in a month, after six central banks cut the cost of emergency dollar funding for European banks and China reduced its reserve ratio for lenders. Agile Property Holdings Ltd., a Chinese property developer, and Evergrande Real Estate Group Ltd., a Guangzhou-based developer, gained at least 11 percent in Hong Kong. Hitachi Construction Machinery Co., a machinery maker that gets about a quarter of its revenue from China, jumped 7 percent in Tokyo. Jiangxi Copper Co., China’s biggest producer of the metal, surged 11 percent and BHP Billiton Ltd. (BHP), the world’s biggest mining company, gained 3.9 percent after commodity prices rose.
“The coordinated dollar funding by six central banks helps to ease concerns about a market collapse because a shortage of liquidity was one of the main things that worsened the 2008 financial crisis,” said Ryota Sakagami, Tokyo-based chief strategist at SMBC Nikko Securities. “The reduction of reserve requirements in China will lead to an increase in money supply and that’ll push up the stock market in China. It also enhances the expectation that China will turn its policy stance toward monetary easing from now on. Companies gaining profits from China will positively react.”

Nikkei 225 Advances as Central Banks Fight European Crisis, China Eases (Bloomberg)
The Nikkei 225 Stock Average (NKY) rose toward its highest level in almost a month after six central banks took action to fight Europe’s debt crisis and China eased lending curbs, boosting the outlook for economic growth in Japan’s biggest export market. Mitsubishi UFJ Financial Group Inc., Japan’s largest bank by market value, gained 3.1 percent. Komatsu Ltd., a maker of construction machinery that counts China as its fastest-growing market, jumped 6.5 percent. Mitsui O.S.K. Lines Ltd. led shippers higher after SMBC Nikko Securities Inc. boosted ratings on companies in the sector, where shares have plunged by about half this year. The Nikkei 225 gained 2.1 percent to 8,612.00 at the 11:30 a.m. trading break in Tokyo, set for its highest close since Nov. 9. The gauge dropped 6.2 percent last month amid concern that Europe’s crisis is spreading to the region’s larger economies. The broader Topix rose 1.8 percent to 741.38 today.

COMMODITIES-Cen bank move to fix liquidity sparks rally
NEW YORK, Nov 30 (Reuters) - Copper saw its biggest surge in a month on Wednesday after a coordinated central bank move to ease global liquidity fears lifted the euro against the dollar, boosting prices of dollar-denominated commodities.  
"The central banks' action has been the big mover today," said Randy North, a copper trader at RBC Capital Markets.

Brent down as US stocks, Libya output up
NEW YORK, Nov 30 (Reuters) - Brent crude futures fell on Wednesday as an unexpected rise in U.S. oil inventories stemmed an early rally ignited by the top central banks' joint intervention to avoid a global liquidity crunch.
"Today's EIA data was predominately bearish across the board, with crude and distillate stocks building much more than expected," said Chris Jarvis, president of Caprock Risk management in Rye, New Hampshire.

Kuwait to keep full crude supply to Asia in Jan-Mar
TOKYO, Dec 1 (Reuters) - Kuwait has notified at least one Asian customer that it will supply full contractual crude oil volumes for January-March 2012, steady from October-December, a person familiar with the matter said on Thursday.
Kuwait has resumed the allocation of full contractual crude oil volumes to Asia from July, ending the imposition of a 5 percent curb in place since February 2009.

Natural gas ends down 2 pct, record supplies weigh
NEW YORK, Nov 30 (Reuters) - U.S. natural gas futures ended lower on Wednesday, pressured by expectations for another weekly inventory build on Thursday and concerns about record high production despite the colder outlook for next week.
"The market is looking for another storage injection (on Thursday), and the cold weather isn't here yet," a Pennsylvania-based trader said, noting forecasts look colder for next week.

Euro Coal-Prices rise $2/T with oil, euro, stocks
LONDON, Nov 30 (Reuters) - Physical prompt coal prices rose on Wednesday in line with oil, equities and the euro and bolstered by the dollar's weakness but no fresh trades were reported and fundamentals remain bearish.
"With this kind of volatility across markets people are staying on the sidelines - prices moved up nearly $2.00 since the morning with everything else," one European trader said.

20111201 1100 Malaysia Corporate Related News.

SP Setia wins RM438m bid in Singapore
SP Setia won a SGD180m (RM437.7m) bid from the Urban Redevelopment Authority of Singapore (URDA) for a 4.62-acre site along Chestnut Avenue in Singapore. The Chestnut Avenue site has a potential development value of RM1.1bn and a maximum allowable gross floor area of 39,270 sq m. The high-rise residential development is expected to be launched by end-2012. This is SP Setia’s second foray into the Singapore property market following its acquisition of a freehold development along Woodsville Close in April this year. (Malaysian Reserve)

ECM Libra IB sale may be back on
K&N Kenanga has cleared the first hurdle to acquiring ECM Libra’s investment banking (IB) unit after receiving the go-ahead from Bank Negara some three weeks ago, according to sources. The sources said that Kenanga will only be acquiring the IB unit rather than the entire listed entity and the consideration will be in cash. This will make ECM Libra a cash-rich entity and enable it to pursue new business interests. Both parties are currently awaiting a decision by the Securities Commission pending several minor details. (Financial Daily)

Celcom Axiata, Philippine firm sign MVNO pact
Celcom Axiata has signed a mobile virtual network operator (MVNO) agreement with Philippine-based PLDT Global Corp (PGC) to offer mobile prepaid services to Filipino workers in Malaysia. The MVNO will be Celcom’s fifth, with Celcom holding a 49% stake and PGC the remaining 51%. The service will be offered under the Smart Pinoy brand. The Smart Pinoy had an addressable market of 800,000 Filipinos. (StarBiz)

CIMB to diversify Sri Lanka ops
CIMB plans to diversify its corporate advisory services in Sri Lanka to also include stockbroking and banking. However, CIMB will only pursue its Sri Lankan ventures once the bank better understand the market there. In August, CIMB entered a joint venture and shareholders’ agreement with its Sri Lankan partners, Alex Lovell and Reshani Dangalia, to establish an investment banking advisory JV in Sri Lanka. (Malaysian Reserve)

Tanjung Offshore gets a RM43m Carigali contract
Tanjung Offshore has won a RM43m contract from Petronas Carigali SB for the provision of maintenance services for mechanical rotating equipment operated by the upstream company in Sarawak for a period of five years. (Malaysian Reserve)

Datuk Khalid Abdol Rahman, DRB-Hicom director for corporating planning,  is  Pos Malaysia CEO effective 1 Jan, 2012, further etching DRB-Hicom’s  influence over the company it gained control of in July this year. The  announcement on Khalid’s appointment yesterday came five months after  DRB-Hicom group managing director Datuk Seri Haji Mohd Khamil Jamil was  named Pos Malaysia’s chairman. Pos Malaysia incumbent CEO, Datuk Syed Faisal Albar, had been  tapped to fill the CEO chair at Malaysia Airports Holdings (MAHB).  This had yet been confirmed or denied at press time. (Financial Daily)

MRCB won a RM40.3m river rehabilitation project for Muara Sungai Perai in  Penang from the Department of Irrigation and Drainage. Scope of works include  construction of a jetty and boat mooring facilities. Contract period is 15 months.  (BMSB)

PLUS Expressways announced that the stock will be suspended from 8  Dec  2011 until delisting. Ex-date for the cash distribution of RM4.45/share will be  on 12 Dec 2011, while entitlement date on 14 Dec 2011.  Payment date is set  on  28 Dec 2011. (BMSB)

AirAsia Bhd announced that the passenger service charge (PSC) or commonly  known as the airport tax, will come into force for all its international flights  from December 1. All tickets purchased from today would include the new  airport tax of RM65 per person, up from the RM51 for flights from Langkawi,  Penang and Kuching international airports, said AirAsia in a statement.  For Kota Kinabalu International Airport (Terminal 2) and the Low Cost  Carrier Terminal (LCCT) KLIA, the new charge is RM32, up from RM25  previously. (Bernama)

In a move to expand the range of Saga models, Proton Holdings Bhd yesterday unveiled a new entry-level Saga variant, the Saga FLX SE, set to  appeal to the younger generation of car buyers. The car, priced from  RM49,449 will be powered by the 1.6 litre Campro Intake Air-Fuel Module  engine. (Bernama)

Capital TV, a new business and finance channel is  slated to make its debut  today but it is only exclusive to  Telekom Malaysia’s Unifi subscribers.  Adding more content is TM’s way of strategising itself to brace for competition  from other players in the market place. It is learnt that Capital TV would get its  news feed from Bernama and Bloomberg TV. (Star Biz)

Petronas Carigali Sdn Bhd awarded Tanjung Maintenance Services Sdn Bhd, a  unit of Tanjung Offshore Bhd, a RM43m contract to maintain mechanical  rotating equipment at all Petronas-operated offshore platforms in the Sara-wak  operations region. The five-year contract, supported by Tanjung’s operations  centre in Miri, can be renewed for another year. (BT)

Express Rail Link  (ERL), the operator of the high-speed train service  between KL Sentral and KLIA is optimistic ridership on board the KLIA Express  and KLIA Transit will improve further next year once the rail link service is  extended to the new low-cost carrier terminal, KLIA2. The 2.2km link will be  completed by October next year. (Bernama)

Danajamin Nasional will guarantee the 13-year RM350m sukuk issued by  hypermarket chain,  Mydin Mohamed Holdings. The funds raised will be  used to finance the construction and development of three hypermarkets.  (Malaysian Reserve)

LFE Corp Bhd’s accounts have been qualified by its independent auditors, the  firm said in a statement to the stock exchange. “As at July 31, an amount of  RM26.5m was due to the group by a former director, of which the scheduled  repayment has not been met, the auditors said in their report. (BT)

Dutch Lady plans to reduce sugar consumption by 40% or 2,700 tonnes by  2013 from its current level as part of its effort to improve nutritional profile of  its products. The drive will begin with the withdrawal of its sweetened creamers  range from the market beginning December 2011. (Malaysian Reserve)

Syarikat Prasarana Negara Bhd (SPNB), which is increasing the capacity  of its monorail system, plans to expand the network to cover other commercial  areas within Kuala Lumpur. The network expansion, however, is only likely to  happen after upgrading work on the existing line is completed by July 2013.  Yesterday, SPNB signed an agreement to award  Scomi Engineering  Bhd a RM494m contract to supply new and bigger trains and undertake work to upgrade RapidKL Monorail stations around the city.  Actual work on this project had already started back in September.  "The new four-car trains are better designed, faster and will double the  current capacity,'' Prasarana's group managing director Datuk Shahril  Mokhtar said. The four-car trains, to be delivered in stages from June  next year, will replace the existing two-car trains. "The two-car trains  shall remain as property of Prasarana for future utilisation elsewhere,''  Shahril said.  He added plans are in the  pipeline to expand the existing monorail  network  into new areas. He did not elaborate, saying the plan is still at  the preliminary stage. The new four-car train costs about RM5.5m each,  depending on specifications. In total, Prasarana has agreed to purchase  12 sets of trains, or 48 cars, from Scomi.  This is the first major upgrade for the RapidKL Monorail service since it  started operations in August 2003. Currently, the monorail system is  operating at 35% over its capacity. With the upgrade, its capacity will be  increased to 6,400 passengers per hour per direction (pphpd), or  double its existing carrying capability. (Sun)

Silver Ridge: Gets new core business. Silver Ridge would work together with Huatai Financial Holdings (Hong Kong) Ltd to promote the Huatai Von Malaysia Fund, which has a fund size of USD500m (RM1.5b), MD Datuk Mohd Suhaimi Abdullah said after the signing of memorandum of understanding between Huatai and Warrants Capital Sdn Bhd to jointly develop investment and business opportunities in Malaysia (Source: The Star)

20111201 1059 Global Economic Related News.

The Federal Reserve, European Central Bank, Bank of Canada, Bank  of England, Bank of Japan and Swiss National Bank  unveiled a  coordinated action to provide liquidity to financial markets in light of strains  caused by Europe's debt crisis. "The purpose of these actions is to ease strains in financial markets and  thereby mitigate the effects of such strains on the supply of credit to  households and businesses and so help foster economic activity," the  Fed said in a statement.  The central banks agreed to lower the pricing on existing dollar liquidity  swap arrangements by 50bp, bringing the new rate to 50bp. As a  contingency measure, they also plan on establishing bilateral liquidity  swap arrangements in other currencies that could be utilized "should  conditions warrant" in the future.  Both programs are authorised through 1 Feb  2013. (Bloomberg)  

Six central banks led by the Federal Reserve lowered the cost of emergency  dollar funding for financial companies in a global effort to ease  Europe’s  sovereign-debt crisis. The new interest rate is the dollar overnight index  swap rate plus 50bp, a 0.5%pt cut, and the program was extended by six months  to 1 Feb 13, the Fed said. The Fed coordinated the move with the European  Central Bank as well as the Bank of Canada, Bank of England, Bank of Japan,  and Swiss National Bank. (Bloomberg)

Australia: RBA straddles record house slump
Australia’s central bank, weighing a second consecutive interest-rate cut next week, is caught between the weakest housing-loan growth on record and signs the nation’s biggest resource boom is accelerating. Reserve Bank of Australia Governor Glenn Stevens lowered borrowing costs 1 Nov by 0.25% to 4.5% as Europe’s sovereign-debt crisis threatens to slow growth in Asian nations. Futures traders are betting he will ease again at the 6 Dec meeting. (Bloomberg)

NZ: Terms of trade fall for first time in two years
New Zealand’s terms of trade index fell for the first time in two years in the third quarter as a rising currency and weaker global markets curbed prices for milk, meat and lumber exports. The index, which measures the price of exports relative to imports, declined 0.7% from the second quarter, when it reached a 37-year high. Export prices dropped the most since 2009, declining 4%, while import prices slid 3.4%. Lower prices for goods and services sold abroad add to the case for slow economic growth and may hinder PM John Key’s efforts to boost incomes and create jobs after winning re-election five days ago. Commodity prices have slumped amid concerns about US demand and the impact of the European debt crisis on sentiment, curbing exports which make up 30% of the economy. (Bloomberg)


Singapore's job market appeared rosy in 2011, with the  employment rate hitting a new high of 78% from 77.1% in 2010 for the resident population aged  25 to 64. (CNA)

China: Reserve-ratio cut may signal economic slowdown deepening
China’s reduction in reserve requirements for banks, the first since 2008, may signal government concern that a slowdown in the world’s second-biggest economy is deepening. Reserve ratios will decline by 50 bpts effective 5 Dec, the central bank said on its website yesterday. The move may add CNY350bn (USD55bn) to the financial system. A report due today may show that China’s manufacturing contracted for the first time since Feb 2009, and the nation’s stocks had their biggest decline in almost four months yesterday. Premier Wen Jiabao aims to sustain the economic expansion as Europe’s debt crisis saps exports, a credit squeeze hits small businesses and a crackdown on real-estate speculation sends home sales sliding. (Bloomberg)


China will double a surcharge on power sales to Rmb0.008 per kWh to  subsidize renewable power generation from Thursday, the National  Development and Reform Commission said. It will also raise power prices for  non-residential users by Rmb0.03 per kWh. (Reuters)

Japanese manufacturing activity contracted in Nov at the fastest pace  since the record earthquake triggered a nuclear crisis as slowing growth in  China, a strong yen and floods at factories in Thailand hurt Japan's output. The  Markit/JMMA Japan Manufacturing Purchasing Managers Index (PMI) fell to a  seasonally adjusted 49.1 in Nov from 50.6 in the previous month. (Reuters)

Japan’s  factory production rose 2.4% mom in Oct (-3.3% in Sep), the  government said. Economists expected an increase of 1.1%. (AP, Bloomberg)

Japanese wage earners' total cash earnings rose 0.1% yoy in Oct (-0.4% in  Sep), labour ministry data showed, marking the first increase in five months in a  tentative sign wage declines could stabilise. (Reuters)

Japanese automobile production climbed 20.3% yoy in Oct (-4.5% in Sep),  the Japan Automobile Manufacturers Association (JAMA) said. (Xinhua) Japan’s  construction orders received by the 50 largest contractors rose  24.3% yoy in Oct (-9.3% in Sep), the first rise in two months. the Ministry of  Land, Infrastructure, Transport and Tourism said. (MNI)

Japan’s  housing starts fell 5.8% yoy in Oct (-10.8% in Sep), falling for the  second straight month, data from the land ministry showed, as worries about a  slowing global economy and a strong yen hurt demand. Economists expected a  6.2% annual decline. (Reuters)

Industrial production in South Korea jumped 6.2% yoy in Oct (+6.9% in  Sep), Statistics Korea said on Wednesday, and above forecasts for an increase of  5.4%. (Bloomberg) 

The Bank of Thailand cut its economic growth forecast for 2011 to 1.8%  from the 2.6% seen last month. It forecast 4.8% growth in 2012, spurred by  reconstruction, up from 4.1% earlier.  (Reuters) 

Thailand’s Business Sentiment Index (BSI) fell sharply to 36.7 in Oct from  48.5 in Sep. (The Nation) 

Thailand’s Commerce Ministry will sell low-priced rice at THB110 per 5-kg  bag this weekend to ensure that low-income consumers do not suffer from the  higher price following the government's policy to push up the price of rice. (The  Nation) 

Thailand’s  current account surplus narrowed in Oct as the faltering global  economy and local flooding hurt exports and tourism. The surplus was US$39m,  compared with a US$404m surplus in Sep. The median estimate was for a  US$568m deficit. (Bloomberg) 

Bank of Thailand cut interest rate by 25bp to 3.25% as forecast by 9 out of  17 economistssurveyed by Bloomberg; 8 had forecast 50bp cut to 3%. The  central bank cut 2011 GDP growth forecast to 1.8% from 2.6% due to floods  while raising 2012 growth forecast to 4.8% from 4.1% previously.  The central  bank said it may ease policy further if the nation struggles to recover from the  inundation. (Bloomberg)  

India's M3 money supply rose 15.2% yoy as on 18 Nov, from 16.1% a fortnight  ago. (Reuters) 

India’s economy expanded by 6.9% yoy in 3Q11 (7.7% in 2Q11), matching the  median forecast and marking the lowest economic growth in two years.  (Bloomberg) 

Bank Indonesia estimates  GDP will expand 6.3% next year, down from its  previous forecast of 6.7%, Deputy Governor Halim Alamsyah said. It expects  economic growth this year of 6.6%. (Jakarta Post) 

Pakistan: Keeps rates on hold to spur growth as investment drops
Pakistan’s central bank left interest rates unchanged, pausing to gauge the impact of a 2% cut since the end of July as foreign investment declines. The State Bank of Pakistan kept the discount rate at 12%, Syed Wasimuddin, a central bank spokesman, said in Karachi yesterday. Emerging markets from Indonesia to Thailand have eased monetary policy to support consumer demand as Europe’s debt crisis threatens a global economic slump. A 3% drop in the inflation rate this year has boosted Governor Yaseen Anwar’s scope to bolster Pakistan’s expansion. (Bloomberg)

Brazil: Cuts rate for third meeting to 11% as economy slows
Brazil’s central bank cut borrowing costs by half a point for a third straight meeting as a global economic slowdown threatens to exacerbate a slump in domestic demand. The bank’s board, led by President Alexandre Tombini, yesterday voted unanimously to reduce the benchmark Selic rate to 11% from 11.5%. Brazil has taken the lead among emerging markets in trying to prevent spillover from Europe’s sovereign-debt crisis. The country’s surprise interest rate cut in August, the first in two years, has since been followed by ones in Australia and Israel. (Bloomberg)


Euroarea annual inflation  is expected to be 3.0% in Nov (3.0% in Oct),  according to a flash estimate issued by Eurostat. The reading was in line with  economists’ expectations. (Eurostat, Bloomberg)

The  euroarea  seasonally-adjusted unemployment rate was 10.3% in Oct  (10.2% in Sep). Economists expected no change in Oct. (Eurostat, Bloomberg)

US: Central banks prepare to distribute foreign currency at home
The Federal Reserve and five other central banks set up agreements to distribute each other’s currencies in the event of a global funding crisis. Central banks agreed to establish temporary bilateral currency swap arrangements “so that liquidity can be provided in each jurisdiction in any of their currencies should market conditions so warrant,” the Fed said yesterday in a press release, calling the agreement a “contingency measure.” The European Central Bank and the central banks of Canada, Japan, Switzerland and the UK agreed to the arrangements. (Bloomberg)

US: Central banks cut cost of borrowing USD to ease crisis
Six central banks led by the Federal Reserve made it cheaper for banks to borrow dollars in emergencies in a global effort to ease Europe’s sovereign-debt crisis. The cost for European banks to borrow dollars dropped from the highest in three years, tempering concerns about the euro’s worsening crisis after leaders said they’d failed to boost the region’s bailout fund as much as planned. The premium banks pay to borrow dollars overnight from central banks will fall by half a percentage point to 50 basis points. The so-called dollar swap lines will be extended by six months to 1 Feb 2013. The Fed coordinated the move with the European Central Bank and the central banks of Canada, Switzerland, Japan and the UK. (Bloomberg)

US stocks surge as central banks boost liquidity
Stocks surged, giving the Dow Jones Industrial Average its biggest rally since March 2009, and the euro strengthened as six central banks made additional funds available to ease strains from Europe’s debt crisis. Treasuries fell while commodities jumped. The Dow gained 4.2% to 12,045.68, while the S&P500 Index surged 4.3% to 1,246.96. The central banks of the US, the euro region, Canada, the UK, Japan and Switzerland agreed to cut the cost of providing dollar funding via swap arrangements and agreed to make other currencies available as needed. Meanwhile, China will cut the reserve requirement ratio for banks by 0.5-ppts. Data on US business activity and the employment and housing markets also topped economists’ estimates. (Bloomberg)

US mortgage applications decreased 11.7% from one week earlier, according  to data from the Mortgage Bankers Association’s (MBA) survey for the week  ended 25 Nov. The Refinance Index decreased 15.3% from the previous week.  The seasonally adjusted Purchase Index decreased 0.8% from one week earlier.  (MBA)

The index of US pending home sales increased 10.4% in Oct (-4.6% in Sep),  the biggest gain since Nov 10, figures from the National Association of Realtors  showed. Economists forecast a 2.0% increase. (Bloomberg)

US planned firings dropped 13% yoy to 42,474 in Nov, according to figures  released by Challenger, Gray & Christmas Inc. The industries with highest  job cuts were in the government (18,508), followed by food (2,368), retail  (2,285), computer (2,250) and energy (2,002). (Bloomberg, Challenger, Gray &  Christmas Inc)

US businesses boosted  hiring in Nov by the largest gain in nearly a year,  payrolls firm  ADP said. The private sector added a net 206,000 jobs in Nov  (+130,000 in Oct), a strong increase from the prior month, ADP said.  Economists expected an increase of 130,000 in Nov. Employment in the private,  service-providing sector increased 178,000 in Nov, after rising 130,000 in Oct.  Employment in the private, goods-producing sector rose 28,000 in Nov.  Manufacturing employment increased 7,000, offsetting the previous  month’s decline, while construction employment grew 16,000. (AFP,  ADP)

US productivity increased at a 2.3% annual rate in 3Q, the Labor Department  said, a downward revision to its previous estimate of 3.1%. Productivity fell at a  0.1% pace in 2Q. Economists forecast productivity being revised down to a 2.6%  growth rate. (Reuters)

20111201 1031 Renewable Energy Related News.

CHINA GD POWER SAYS TO INVEST IN $3 BLN HYDROPOWER PLANT
SHANGHAI, Nov 30 (Reuters) - China GD Power Development's  majority-owned subsidiary will invest in a 19.26 billion yuan ($3 billion) hydropower project, the firm said in a statement on Wednesday.
GD Power, a unit of state-owned Guodian Corp, said investment in the Houziyan hydropower project would be made via Dadu River Hydropower Development Co Ltd, in which it has a 69 percent stake.

SPAIN HYDRO RESERVES DOWN, IRRIGATION STOCKS UP
Madrid, Nov 29 (Reuters) - - Spain had less water than a week ago to generate hydropower and ease its hefty dependence on gas imports but irrigation reserves rose in what is also a major grain buying country, according to the latest official data on Tuesday.
Hydropower reservoirs  had the capacity to produce 11,460 gigawatt-hours, down 51 GWh on the week, according to the Ministry for the Environment and Rural Affairs.

GRID CONNECTION KEY TO OFFSHORE WIND GROWTH - EWEA
AMSTERDAM, Nov 29 (Reuters) - Funds for the offshore wind sector, mainly to cover the cost of connecting turbines to the grid, is vital to developing an industry that could meet a substantial part of Europe's energy needs and create nearly 170,000 jobs by 2020, a new study said.
More than 141 gigawatts of offshore wind energy capacity is built, under construction, agreed to, or planned in Europe, according to The European Wind Energy Association (EWEA) study, published on Tuesday. Once completed by 2030, these wind farms will provide 13.1 percent of Europe's total electricity.

CHINA SOLAR EXECS SAY AIM TO AVOID TRADE WAR WITH U.S.
BEIJING, Nov 29 (Reuters) - Heads of China's solar industry on Tuesday said they strongly oppose an investigation by the U.S. into Chinese-made solar panels and asserted that competitive advantages alone explained their success on the global market.
However, in a statement from the China Chamber of Commerce for the Import and Export of Machinery and Electronic Products (CCCME), which represents the solar industry, they added that the firms did not intend to start a trade war with the U.S. industry.

REC TO CUT SOLAR OUTPUT, WARNS OF FURTHER CUTS
OSLO, Nov 29 (Reuters) - Norwegian solar firm Renewable Energy Corp  plans to cut output further as global economic turbulence depresses demand and prices, and predicted industry-wide consolidation as the sector makes a difficult adjustment to lower demand.
REC shares dropped 7.8 percent to 3.693 euros by 0822 GMT, having dropped as low as 3.66, equalling a record low set last week and a fraction of a peak of 224 set in 2007.

JAPAN'S KANSAI ELECTRIC TO BUILD 2 SOLAR PLANTS
TOKYO, Nov 28 (Reuters) - Japanese utility Kansai Electric Power Co  said it has decided to build two solar power plants in Fukui prefecture in western Japan, with total capacity of 1 megawatt, by March 2015.
The plants, each with capacity of 500 kilowatts, are projected to generate a total 1 million kilowatt-hours of electricity a year, equivalent to reducing 300 tonnes annually of carbon dioxide emissions, the Osaka-based Kansai Electric said in a statement.

DENMARK AIMS FOR 100 PCT RENEWABLE ENERGY IN 2050
COPENHAGEN, Nov 25 (Reuters) - Danish government proposals on Friday called for sourcing just over half of its electricity from wind turbines by 2020 and all of its energy from renewable sources in 2050.
The government also invited the parties in parliament to negotiations on the proposal to shape energy policy to 2020.

UK LAUNCHES GREEN HEATING SCHEME AFTER 2-MONTH DELAY
LONDON, Nov 25 (Reuters) - Britain will on Monday open the world's first subsidy scheme designed to support the use of renewable energy sources for heating, two months later than its initial start date after the European Commission requested a rate change.
State aid for large-scale biomass heating schemes were slashed by 62 percent to one pence per kilowatt-hour (kWh) after the Commission's competition directorate objected to the initial rate which it deemed too high.

PANASONIC PLANS $580 MLN SOLAR CELL PLANT IN MALAYSIA
TOKYO, Nov 25 (Reuters) - Panasonic Corp  said on Friday it will invest $580 million to build a solar cell plant in Malaysia, starting up its first such factory overseas as strength in the yen makes domestic production more expensive.
The Malaysia plant will start production in December 2012 and will have annual production capacity of 300 megawatts, boosting Panasonic's solar output capacity by 50 percent to about 900 megawatts.

IVORY COAST TO BUILD HYDRO DAM, BOOST CAPACITY
ABIDJAN, Nov 24 (Reuters) - Ivory Coast will build a 275-megawatt hydroelectric station power in the west in the next four years, part of plans to increase the country's capacity by 150 MW a year for the next 10 years, the ministry of mines has said.
Speaking late on Wednesday during a two-day meeting of West African power sector officials, mines and energy cabinet director Noel Guetat said the aim was to have more power available for exporting around the region.

AFDB PLEDGES $498 MLN TO MOROCCAN RENEWABLES PLAN
RABAT, Nov 23 (Reuters) - The African Development Bank (AfDB) on Wednesday said it was close to approving 373 million euros ($498 million) in financing for renewable energy in Morocco, which has embarked on one of the world's most ambitious solar energy developments.
The financing is in the course of being finalised, AfDB said in a statement, noting that it expects its board to vet it before the end of 2011.

20111201 1030 Biofuel Related News.

US ETHANOL PRODUCTION CAPACITY OVER 14 BLN GALLONS
Nov 29 (Reuters) - The U.S. biofuels industry has more than 14 billion gallons in annual production capacity for fuel ethanol, according to new industry and government data, but growth has hit a plateau and experts see steady but slow capacity growth going forward.
A government report issued Tuesday shows fuel ethanol industry maximum sustainable capacity at 193 plants capable of churning out 14.2 billion gallons a year or 929,000 barrels a day. The data, issued as a first-ever report by the Energy Information Administration, is nearly a year old, based on information as of Jan. 1, 2011.

SAO MARTINHO SEES HIGHER SUGAR PRICES IN BRAZIL
SAO PAULO, Nov 28 (Reuters) - The decline of the Brazilian currency against the dollar should improve sugar prices in local terms and therefore profit margins, an executive at sugar and ethanol producer Sao Martinho  said on Monday.
The Brazilian real  dipped about 17 percent in the last quarter, and economists do not expect it to return to the stronger levels reached earlier this year. After touching its highest mark in 12 years in July, at around 1.54 to the dollar, it is now traded around 1.85 to the dollar.

BRAZIL'S NORTHEAST CHURNS OUT RECORD CANE CROP
SAO PAULO, Nov 25 (Reuters) - Boosted by plentiful rain, Brazil's northeast is reaping a record sugarcane crop, while output declines in the main center-south region, industry officials and analysts said.
The use of new more robust cane varieties and an expansion of irrigated areas also contributed to the increase in cane output, which could top 67 million tonnes, up from last season's 63 million tonnes, they said.

EU OPENS INVESTIGATION INTO U.S. BIOETHANOL SUBSIDIES
BRUSSELS, Nov 25 (Reuters) - The European Commission launched an investigation on Friday over complaints that U.S. bioethanol exporters are using unfair state subsidies to sell their fuel to Europe at illegally low prices, a statement in the EU official journal showed.
The investigation follows a formal complaint by EU bioethanol industry association ePURE in October, which alleged that tax credits in the United States allow its exporters to cut their EU selling price by about 40 percent, EU diplomats said.

ICE SUGAR HAS FLOOR AROUND 17 CENTS-JOB ECONOMIA
SAO PAULO, Nov 23 (Reuters) - ICE front-month raw sugar futures prices would have a floor of around 17 cents a lb, as Brazilian mills would find ethanol biofuel more remunerative than sugar around this level, an analyst said on Wednesday.
ICE front-month, March raw sugar futures  closed down 1.5 percent at 23.09 cents a lb on Wednesday, the lowest level in 5-1/2 months.

US ETHANOL OUTPUT RISES SLIGHTLY, STOCKS UP 2 PCT
Nov 23 (Reuters) - U.S. ethanol production rose slightly and stocks climbed 2 percent in the last week, the Energy Information Administration reported Wednesday.
U.S. ethanol production totaled 917,000 barrels per day in the seven days to Nov. 18, up 1,000 bpd from the previous week.

CHESAPEAKE, PARTNERS SET SUNDROP BIOFUEL PLANT SITE
Nov 23 (Reuters) - Sundrop Fuels Inc, a biofuel startup financed by Chesapeake Energy Corp CHK.N> and venture capitalists, selected a site in Louisiana to build its first commercial production facility.
Sundrop expects to break ground for the $500 million facility, which will use wood waste combined with hydrogen from natural gas to produce gasoline, in the fall of 2012, a spokesman for the project said on Wednesday.

20111201 1029 Global Market Related News.

Dow Jumps Most Since 2009 as Central Banks Take Action on Crisis (Source: Bloomberg)
U.S. stocks advanced, driving the Dow Jones Industrial Average up the most since March 2009, after six central banks took action on Europe’s debt crisis by making it cheaper for lenders to borrow in dollars. Financial shares rallied 6.6 percent, the biggest gain in the Standard & Poor’s 500 Index among 10 groups. JPMorgan Chase & Co. (JPM) and Bank of America Corp. (BAC) surged at least 7.3 percent. Caterpillar Inc. (CAT) increased 8.1 percent and U.S. Steel Corp. climbed 15 percent after China lowered banks’ reserve requirements, bolstering optimism about economic growth. The Dow Jones Transportation Average jumped 4.8 percent. The S&P 500 rose 4.3 percent to 1,246.96 at 4 p.m. New York time. The benchmark gauge rallied 7.6 percent in three days, the most since March 2009. The Dow added 490.05 points, or 4.2 percent, to 12,045.68. About 10 billion shares changed hands on U.S. exchanges, or 25 percent above the three-month average.

Japanese Stocks Gain Most in 2 Months as Central Banks Fight Europe Crisis (Source: Bloomberg)
Japanese stocks gained, sending the Nikkei 225 (NKY) Stock Average toward its biggest gain in more than two months, after six central banks cut the cost of emergency dollar funding for European banks in response to the continent’s debt crisis. Mitsubishi UFJ Financial Group Inc., Japan’s biggest lender by market value, gained 3.7 percent. Komatsu Ltd., a maker of construction machinery that counts China as its fastest-growing market, jumped 6 percent after China took action to boost growth by lowering lending curbs. Mitsui & Co., a trading house that gets about 40 percent of its sales from commodities, climbed 3.9 percent after oil and metals prices rose. The Nikkei 225 gained 2.3 percent to 8,629.02 as of 9:27 a.m. in Tokyo, set for the biggest gain since Sept. 27. The gauge dropped 6.2 percent last month amid concern that Europe’s crisis is spreading to the region’s larger economies. The broader Topix rose 2 percent to 743.05 today.

Europe’s Stoxx 600 Index Posts Biggest Four-Day Gain Since November 2008 (Source: Bloomberg)
European stocks jumped, posting their biggest four-day rally since November 2008, as the Federal Reserve and five other central banks lowered the cost of dollar funding and China cut its reserve ratio for banks. Barclays Plc (BARC) and Deutsche Bank AG (DBK) rallied. BHP Billiton Ltd. (BHP), the world’s biggest mining company, paced gains in commodity shares. BP Plc (BP/), Europe’s second-largest oil company, rose the most in two months. The Stoxx Europe 600 Index increased 3.6 percent to 240.08 at the close. The benchmark measure has increased 9.1 percent over the last four days. The Stoxx 600 fell as much as 1.1 percent earlier today, after Standard & Poor’s cut the credit ratings of global banks including HSBC Holdings Plc (HSBA) and UBS AG. (UBSN)

Central Banks Cut Cost of Borrowing Dollars (Source: Bloomberg)
Six central banks led by the Federal Reserve made it cheaper for banks to borrow dollars in emergencies in a global effort to ease Europe’s sovereign-debt crisis. Stocks rallied, driving the Dow Jones Industrial Average up the most since March 2009, commodities surged and yields on most European debt fell on the show of force from central banks aimed at easing strains in financial markets. The cost for European banks to borrow dollars dropped from the highest in three years, tempering concerns about the euro’s worsening crisis after leaders said they’d failed to boost the region’s bailout fund as much as planned. “It’s supportive but not necessarily a game changer,” said Michelle Girard, senior U.S. economist at RBS Securities Inc. in Stamford, Connecticut. “The impact is more psychological than anything else” as investors take heart from policy makers’ coordination, Girard said.

Central Banks Prepare to Distribute Foreign Currency at Home During Crises (Source: Bloomberg)
The Federal Reserve and five other central banks set up agreements to distribute each other’s currencies in the event of a global funding crisis. Central banks agreed to establish temporary bilateral currency swap arrangements “so that liquidity can be provided in each jurisdiction in any of their currencies should market conditions so warrant,” the Fed said today in a press release, calling the agreement a “contingency measure.” The European Central Bank and the central banks of Canada, Japan, Switzerland and the U.K. agreed to the arrangements. The bilateral agreements were announced alongside coordinated action by the six central banks aimed at boosting dollar liquidity. Bilateral swaps would enable, for example, the Fed to provide euros, Swiss francs, or British pounds to U.S. banks if needed. The accord allows a broader distribution of liquidity and allows a bank to deal directly with its home central bank, said Dino Kos, a former New York Fed executive vice president in charge of open market operations.

Fed: ‘Slow to Moderate’ Growth in 11 Districts (Source: Bloomberg)
The Federal Reserve said the economy expanded at a “moderate” pace in 11 of 12 districts, led by gains in manufacturing and consumer spending. “Overall economic activity increased at a slow to moderate pace since the previous report across all Federal Reserve districts except St. Louis, which reported a decline in economic activity,” the Fed said in its Beige Book survey released today in Washington covering October and the first half of November. The report reinforces the central bank’s view that the economy, while strong enough to skirt a recession, remains too weak to bring down an unemployment rate stuck near 9 percent or higher for more than two years. At their last meeting Nov. 1-2, some Fed policy makers said the central bank should consider easing policy further, according to minutes of the meeting.

Fed Has Tools Beyond Swaps for Countering Europe’s Sovereign-Debt Crisis (Source: Bloomberg)
The Federal Reserve has tools available for easing Europe’s sovereign-debt crisis beyond its coordinated effort to reduce borrowing costs announced today, including cutting the U.S. discount lending rate. Six central banks led by the Fed lowered the cost of emergency dollar funding for financial companies, reducing the premium banks pay to borrow dollars overnight from central banks by half a percentage point to 50 basis points. The Fed may reduce what it charges on emergency loans to banks by a quarter point to 0.5 percent by early next week, said Michael Cloherty, head of U.S. interest rate strategy at RBC Capital Markets. It probably won’t resort to its other options, including reopening the Term Auction Facility to give U.S. banks more access to funding, without a worsening in Europe’s crisis, said Charles Lieberman, chief investment officer with Advisors Capital Management LLC in Hasbrouck Heights, New Jersey.

Fed Policy Makers Sharpen Differences Over Conditions for More Bond Buying (Source: Bloomberg)
Federal Reserve policy makers sharpened their differences over the signs of economic decline that would warrant more asset purchases by the Fed in speeches yesterday. Vice Chairman Janet Yellen said the Fed still has “scope for action” to fight unemployment she predicted would remain “painfully high” for years. Atlanta Fed President Dennis Lockhart said he doubted more bond buying would make a difference, while the Minneapolis Fed’s Narayana Kocherlakota said policy makers should begin tightening in 2012, assuming forecasts for lower unemployment and stable inflation prove accurate. The officials’ remarks underscore a divided Fed that’s struggling to bring down a jobless rate stuck near 9 percent or higher for more than two years. The central bank will probably choose to step up stimulus through a third round of asset purchases next quarter, 16 of the 21 primary dealers of U.S. government securities that trade with the Fed said in a Bloomberg News survey last week.

Employment, Businesses Expand More Than Forecast: Economy (Source: Bloomberg)
Companies boosted payrolls in November by the most this year and U.S. businesses expanded at the fastest pace in seven months, giving the economy a lift as 2011 draws to a close. Private employment, which excludes government jobs, climbed 206,000 this month, according to data today from Roseland, New Jersey-based ADP Employer Services. The Institute for Supply Management-Chicago Inc.’s business barometer increased to 62.6 in November from 58.4 the prior month as orders and production strengthened. “Things are shifting in the right direction for a faster pace of growth next year,” said Carl Riccadonna, a senior U.S. economist at Deutsche Bank Securities Inc. in New York. “New orders are rising, production is increasing and employment will likely improve.” In addition, “central banks are taking the right steps,” he said.

Pending Sales of Existing U.S. Homes Exceed Forecasts With 10.4% Increase (Source: Bloomberg)
The number of Americans signing contracts to buy previously owned homes rose more than forecast in October as buyers took advantage of falling prices and low borrowing costs. The index of pending home sales increased 10.4 percent, the biggest gain since November 2010, after falling 4.6 percent the prior month, figures from the National Association of Realtors showed today in Washington. Economists forecast a 2.0 percent increase, according to the median estimate in a Bloomberg News survey. While mortgage rates near record lows are helping some buyers purchase housing that’s growing more affordable as prices drop, 9 percent joblessness and tight lending standards are keeping others out of the market. A new wave of foreclosures may augment the property oversupply, triggering further slides in value and delaying an industry recovery.

China PMI Falls for First Time Since 2009 (Source: Bloomberg)
China’s manufacturing contracted for the first time since February 2009 as the property market cooled and Europe’s crisis cut export demand, a survey showed. The Purchasing Managers’ Index fell to 49.0 in November from 50.4 in October, the China Federation of Logistics and Purchasing said in a statement today. The median estimate in a Bloomberg News survey of 18 economists was 49.8. A level above 50 indicates expansion. The central bank last night announced the first cut in banks’ reserve requirements since 2008, moving two hours before the U.S. Federal Reserve led a global effort to ease Europe’s sovereign-debt crisis. The move will add about 370 billion yuan ($58 billion) to the financial system and more reductions may follow as the government seeks to support growth, Citigroup Inc. said.

China Reserve-Ratio Cut May Signal Slowdown (Source: Bloomberg)
China’s reduction in reserve requirements for banks, the first since 2008, may signal government concern that a slowdown in the world’s second-biggest economy is deepening. Reserve ratios will decline by 50 basis points effective Dec. 5, the central bank said on its website yesterday. The move may add 350 billion yuan ($55 billion) to the financial system, according to UBS AG. A report due today may show that China’s manufacturing contracted for the first time since February 2009, and the nation’s stocks had their biggest decline in almost four months yesterday. Premier Wen Jiabao aims to sustain the economic expansion as Europe’s debt crisis saps exports, a credit squeeze hits small businesses and a crackdown on real-estate speculation sends home sales sliding.

Japanese Stocks Gain Most in 2 Months as Central Banks Fight Europe Crisis (Source: Bloomberg)
Japanese stocks gained, sending the Nikkei 225 (NKY) Stock Average toward its biggest gain in more than two months, after six central banks cut the cost of emergency dollar funding for European banks in response to the continent’s debt crisis. Mitsubishi UFJ Financial Group Inc., Japan’s biggest lender by market value, gained 3.7 percent. Komatsu Ltd., a maker of construction machinery that counts China as its fastest-growing market, jumped 6 percent after China took action to boost growth by lowering lending curbs. Mitsui & Co., a trading house that gets about 40 percent of its sales from commodities, climbed 3.9 percent after oil and metals prices rose. The Nikkei 225 gained 2.3 percent to 8,629.02 as of 9:27 a.m. in Tokyo, set for the biggest gain since Sept. 27. The gauge dropped 6.2 percent last month amid concern that Europe’s crisis is spreading to the region’s larger economies. The broader Topix rose 2 percent to 743.05 today.

S. Korean Inflation Quickens to 3-Month High, Above Central Bank’s Target (Source: Bloomberg)
South Korea’s inflation accelerated to a three-month high and above the central bank’s target limit in November, posing a dilemma for policy makers as risks to growth increase. Consumer prices rose 4.2 percent from a year earlier, after a revised 3.6 percent gain in October, Statistics Korea said today in Gwacheon, south of Seoul. The reading used a new inflation gauge system after the government this week changed the base year for the index to 2010 from 2005. A separate report showed exports rose a more-than-forecast 13.8 percent. Elevated inflation may leave limited room for the Bank of Korea to cut interest rates as Europe’s debt crisis dims the outlook for exports. China’s central bank last night announced the first cut in lenders’ reserve requirements since 2008, as the U.S. Federal Reserve led a global effort to ease strains in financial markets.

Thailand Cuts Interest Rate as Floods Force First Policy Easing Since 2009 (Source: Bloomberg)
The Bank of Thailand cut interest rates for the first time in more than two years and lowered its 2011 economic growth forecast as the nation reels from the worst floods in almost 70 years. The central bank reduced its one-day bond repurchase rate by a quarter of a percentage point to 3.25 percent, it said in Bangkok today. Nine of 17 economists in a Bloomberg News survey predicted the decision, with the rest expecting a half-point cut. The central bank said gross domestic product will rise 1.8 percent in 2011, less than an earlier 2.6 percent estimate. The move to prop up the economy follows the worst slump in industrial output in October since at least 2000 and the lowest consumer confidence in a decade, after the floods killed more than 600 people and shut thousands of factories. Thailand joins Indonesia in cutting rates this month, as the threat from the debt crisis in Europe adds pressure on Asia to shield growth.

Canada Economic Rebound Beats Forecasts as Export Surge Tops Slow Spending (Source: Bloomberg)
Canada’s economy rebounded at a faster pace than economists forecast in the third quarter as the biggest jump in exports since 2004 more than offset slower domestic spending. Gross domestic product grew at a 3.5 percent annualized pace from July to September following a revised 0.5 percent contraction the prior three months, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg forecast 3 percent growth, based on the median of 23 responses. Companies such as telecommunications firm BCE Inc. and Montreal-based railway tie-maker Stella Jones Inc. expect sales growth next year even as the Bank of Canada and the Organization for Economic Cooperation and Development cut their forecasts. Exporters are being supported by the 3.7 percent decline in Canadian dollar versus its U.S. counterpart in the last six months.

Brazilian Central Bank Cuts Rate for Third Meeting to 11% as Economy Slows (Source: Bloomberg)
Brazil’s central bank cut borrowing costs by half a point for a third straight meeting as a global economic slowdown threatens to exacerbate a slump in domestic demand. The bank’s board, led by President Alexandre Tombini, today voted unanimously to reduce the benchmark Selic rate to 11 percent from 11.5 percent, as forecast by 64 of 65 analysts surveyed by Bloomberg. One analyst predicted a full-point cut. Policy makers said that “by timely mitigating the effects coming from a more restrictive global environment, a moderate adjustment in the level of the basic rate is consistent with the scenario of inflation converging to the target in 2012,” according to their statement posted on the central bank’s web site. The language in today’s statement was unchanged from the bank’s Oct. 19 decision.

Euro Ministers Seek Greater IMF Role as Bailout-Fund Expansion Falls Short (Source: Bloomberg)
European finance ministers said they would seek a greater role for the International Monetary Fund alongside their own bailout fund in their latest gamble at taming the euro zone’s sovereign debt crisis. Ministers turned to the IMF after conceding that higher interest rates and lower appetite for European bonds made it impossible for the European Financial Stability Facility to be leveraged up to its 1 trillion euro ($1.3 trillion) target. Meeting in Brussels, the ministers also suggested that any IMF help or increase in bond purchases by the EFSF, and possibly by the ECB, depends on a Dec. 9 summit of heads of government accepting German demands for governance changes that would tighten enforcement of budget rules.
“The feasibility of interventions by both bodies depends on making progress on institutional matters such as moving toward fiscal union,” new Italian Prime Minister Mario Monti said after the meeting. “The euro summit of next week will be fundamental because further progress has to achieved on the governance of the euro zone.”

20111201 1028 Global Commodities Related News.

Commodities Rise to Two-Week High as Fed, Central Banks Boost Liquidity (Source: Bloomberg)
Commodities rose to the highest in almost two weeks after the Federal Reserve cut the cost of emergency funding for banks in Europe as part of a global effort to stem the region’s sovereign-debt crisis. The Standard & Poor’s GSCI index of 24 raw materials rose 0.7 percent to settle at 658.02 at 4:04 p.m. New York time. Earlier, the measure reached 664.56, the highest since Nov. 17. Industrial and precious metals led the rally. In the two weeks ended Nov. 25, the GSCI gauge dropped 4.5 percent as borrowing costs surged in Europe, imperiling the euro and banks. The Fed’s move was coordinated with the European Central Bank and central banks in Canada, England, Japan and Switzerland. Separately, China cut the amount of cash that banks must set aside as reserves for the first time since 2008. Global stocks rallied.

China Food Prices Rose Last Week; Vegetables Lead - Ministry (Source: CME)
Food prices in China mostly rose in the last week, with prices of vegetable marking a third consecutive week of increases, the Ministry of Commerce said. Food accounts for about a third of China's consumer-price index, and food-price movements are closely watched as the government seeks to contain inflation. Average wholesale prices for 18 types of vegetables monitored by the ministry rose 3%, it said. Edible-oil prices rose 0.1%-0.2%, beef gained 0.4% and mutton increased 0.6%. Pork prices fell 1%, and have declined 10.7% since mid-September.

Corn (Source: CME)
US corn futures end higher, fueled by broader based buying across asset classes on more upbeat macroeconomic outlooks. Weakness in the US dollar following actions by major central banks to increase liquidity for European banks sparked investor confidence to add risk, analysts say. However, futures retreated from the initial highs, briefly slumping into negative territory, as traders' bearish psychology will need confirmation of a pickup in demand before they become aggressive buyers, Allendale's Rich Nelson says. Traders took profits on the early gains. CBOT March corn ended up 2 1/2c at $6.08/bushel, well off the intra-day high of $6.16.

Wheat (Source: CME)
US wheat futures end lower, failing to sustain strong early gains. The absence of supportive fundamental news specific to wheat, left futures without a demand based to justify higher price levels, analysts say. Futures initially spiked with other commodity markets on news of central bank's actions, but without a sign of fresh demand surfacing from recent declines, traders viewed that as a signal that US wheat remains uncompetitive in world export markets, analysts add. CBOT March wheat dipped 2c to $6.14/bushel, March KCBT wheat dropped 9c to $6.61, and March MGEX wheat ended down 10c at $8.23 1/2.

Rice (Source: CME)
US rice futures end sharply higher as speculators bought to cover shorts and commercial buyers added to their long positions. Technical buying was featured, with broader support from external markets helping futures correct deeply oversold conditions, analysts say. CBOT January rice finished up 3.2% at $14.83 1/2 per hundredweight.

U.S. wheat drops 0.7 pct; euro zone worries weigh
SINGAPORE, Nov 30 (Reuters) - U.S. wheat slid amid a broad-based weakness in the commodity marketsfollowing a near 4 percent rally in the last session, itsbiggest one-day gain in more than a month.
"Corn and wheat markets are generally tracking the outsidemarket as Europe's debt crisis is still playing in the minds ofinvestors," said Lynette Tan, an analyst at Phillip Futures inSingapore.

Firm cash seen limiting CBOT wheat/corn deliveries
CHICAGO, Nov 29 (Reuters) - U.S. grain traders largely expect no corn and wheat deliveries against the Chicago Board of Trade December contracts on Wednesday, the first notice day for deliveries, due to strong prices in the cash markets.
Eight traders and analysts polled by Reuters were expecting no deliveries in oats, but deliveries of 2,000 to 3,000 soyoil contracts and zero to 200 soymeal. Two of the eight said there could be large deliveries of wheat by speculators.

Dry, warm autumn brings risks for W.Europe grains
PARIS, Nov 29 (Reuters) - Unusually dry and warm autumn weather in western Europe could leave grains more vulnerable to a cold snap this winter in France and Germany and may already have led to some sowings being disrupted in Spain, analysts and crop experts said.
It was too early to predict potential losses and the arrival of rain and cooler weather in the coming weeks would ease the situation by strengthening plants, they said.

Argentina approves 2.7 mln tonnes more wheat for export
BUENOS AIRES, Nov 29 (Reuters) - Argentina's government approved an additional 2.7 million tonnes of 2010/11 wheat for export, boosting the total to 11.1 million tonnes, Agriculture Minister Julian Dominguez told reporters on Tuesday.
The country's deputy agriculture secretary told Reuters on Friday that between 2.5 million and 3.5 million tonnes of old season wheat would be cleared for sale abroad.

Rain and snow snarl final US harvest; rains on Plains
CHICAGO, Nov 29 (Reuters) - Rain and snow will slow final U.S. corn harvesting this week and more rain is set to fall on the Plains hard red winter wheat region by the weekend, an agricultural meteorologist said on Tuesday.
"It is certainly wet in the south and east Midwest with some snow. From 2 to 4 inches of snow can be expected today in the southeast and rain changing to snow by late today in southeast Illinois, Ohio and Michigan," said Don Keeney, meteorologist for MDA EarthSat Weather.

Weather stays good for Russia winter grain-forecaster
MOSCOW, Nov 29 (Reuters) - The weather in the next 10 days will remain favourable for the wintering of Russia's winter grain crop, the country's top weather forecaster said on Tuesday.
"Snow is lying to the east of Moscow, and 80 kms (around 50 miles) away snow is 13-16 cm (5-6 inches) thick, and it is even thicker in the regions along the Volga, Siberia and the Urals," Roman Vilfand, director of the Hydrometcentre weather forecasting service, told reporters.

Ukraine grain exports at 6.8 mln T so far 11/12
KIEV, Nov 29 (Reuters) - Ukraine has exported 6.8 million tonnes of grain so far in the 2011/12 season, including 2.09 million in November, Serhiy Kvasha, the head of the Agriculture Ministry's markets department, was quoted as saying on Tuesday.
Interfax Ukraine news agency quoted Kvasha as saying the volume included 2.14 million tonnes of wheat, 1.8 million of barley and 2.76 million of maize.

Majority Of UK Crops Developed Well Despite Dry Autumn - HGCA (Source: CME)
The majority of U.K. crops have developed well, despite a mild, dry autumn with parts of the country had cumulative rainfall of less than 70% normal, the Home Grown Cereals Authority, or HGCA, said. The HGCA said that air temperatures peaked at six degrees above normal in October and over two degrees above normal in November. Such conditions allowed farmers to make good progress with the drilling of oilseed rape, winter cereals and field beans, with all planned crops now in the ground bar occasional first wheat crops due to late harvested roots. "The exception was in Scotland where the wet harvest, delays in baling straw and continuing wet weather caused some delays," the HGCA said. Regarding wheat, September sown crops that went into moist seedbeds are at mid-tillering and October sown crops remain at early tillering, the HGCA said. The winter wheat crop is now well established, the HGCA said, with lush growth.
"Weed control has been good where moisture was available to activate pre-emergence herbicides, but has been more variable in dry conditions," said the HGCA. The drier conditions have resulted in the lowest levels of slug activity over recent years, but parts of Scotland, Wales and the North East experienced wed cloddy seed beds that favored slugs, the HGCA said. The main disease present amongst the winter wheat crops this autumn is mildew, encouraged by mild, damp weather and lush crops, however most of the crops are well established enough to withstand, the HGCA said. "There are some reports of yellow rust and brown rust pustules in susceptible varieties, but as yet they aren't at levels to cause concern," the HGCA said.

ICE sugar falls early, tracks commodity setback
LONDON, Nov 30 (Reuters) - ICE sugar, cocoa and coffee futures fell in early trade, tracking widespread losses in commodities as markets eyed the deepening debt crisis in the euro zone.
ICE raw sugar futures fell in early trade but continued to hold above last week's 5-1/2 month low.

World sugar consumption to hit 201 mln T by 2020-ISO
LONDON, Nov 29 (Reuters) - World sugar consumption is set to grow to 201 million tonnes by 2020, growing by an average 2.02 percent a year, the International Sugar Organization (ISO) said on Tuesday.
ISO senior economist Leonardo Bichara Rocha told the annual ISO seminar that 60 percent of world consumption growth by 2020 would come from the Far East and the Indian sub-continent.

Africa's coffee output to rise by a third by 2015
NAIROBI, Nov 24 (Reuters) - Africa's coffee output could leap by a third within the next five years as farmers scramble to replace mature trees with disease-resistant seeds to cash in on soaring global prices for the beans, a senior industry official said.
Poor prices, drought, disease and political instability in major producers such as Ivory Coast have led to neglect of coffee farms, while some farmers ditched the commodity in favour of planting staple foods such as maize.

Brazil cane output seen down for first time in decade
LONDON, Nov 29 (Reuters) - Centre-south Brazil is on track to produce 490 million tonnes of sugarcane in 2011/12, representing the first fall in sugar production in the South American country in a decade, Plinio Nastari, president of consultancy Datagro, said on Monday.
He told the annual International Sugar Organization (ISO) seminar that he expected total sugar production in Brazil to fall to 35.4 million tonnes in 2011/12 from 38.0 million in 2010/11. Brazil is the world's top sugar producer and exporter.

Thailand sees record 2011/12 sugar output at 9.9 mln T
BANGKOK, Nov 29 (Reuters) - Thailand, the world's second-biggest sugar exporter, has started its 2011/12 crushing season and is forecast to produce a record 9.9 million tonnes of the sweetener this year and may export  7.5 million tonnes in 2012, a senior official said on Tuesday.  
Although the forecast was more or less within market expectations of around 9.5 million to 10 million tonnes of sugar and largely unaffected by the floods, more supply from Thailand could put pressure on Thai premiums, a key indicator of demand.

Weather seen taking toll on Brazil '12 coffee-coop
BRASILIA, Nov 29 (Reuters) - Brazil's 2012 coffee harvest will be smaller than the last 'on-year' crop in 2010 because of bad weather that has taken a heavy toll on trees, local cooperative Cooparaiso said on Tuesday.
The coop is still preparing its output estimate for the world's top coffee grower, though it joins a growing number of local producers and exporters in dismissing the idea the next crop will be the boom year that some foreign analysts predict.

Cuban sugar harvest gets under way, 20 pct rise seen
HAVANA, Nov 29 (Reuters) - Cuba's 2011-2012 sugar harvest got under way on Tuesday as cane cutting began in Eastern Guantanamo province, official media reported, amid optimism that improved organization and more cane will translate into a 20 percent increase in raw sugar production.
The first of 46 mills was scheduled to open on Wednesday, and a second on Thursday, with plans calling for output to reach 1.45 million tonnes by the time the season ends in April, compared with 1.2 million tonnes Reuters estimates was produced during the previous harvest.

Indian cane expansion faces constraints- miller
LONDON, Nov 29 (Reuters) - Prospects to boost sugarcane production in India are constrained by limitations in availability of land, water and power, a senior Indian miller said on Tuesday.
India is the world's number 2 sugar producer after Brazil and is the world's leading consumer of the sweetener.

Brazil cane output seen down for first time in decade
LONDON, Nov 29 (Reuters) - Centre-south Brazil is on track to produce 490 million tonnes of sugarcane in 2011/12, representing the first fall in sugar production in the South American country in a decade, Plinio Nastari, president of consultancy Datagro said on Monday.
He told the annual International Sugar Organization (ISO) seminar that he expected total sugar production in Brazil to fall to 35.4 million tonnes in 2011/12 from 38.0 million in 2010/11. Brazil is the world's top sugar producer and exporter.

Record Cotton Crop Spurs Goldman to Predict Declining Prices: Commodities (Source: Bloomberg)
The combination of a record cotton crop and falling consumption will expand global stockpiles by the most since 2005, driving further declines in the price of this year’s worst-performing commodity. Harvests will increase 7.5 percent to 123.89 million 480- pound bales (27 million metric tons) in the 12 months ending in July, as demand drops to a three-year low of 114.27 million bales, the U.S. Department of Agriculture estimates. Prices may decline 15 percent to 77 cents a pound on ICE Futures U.S. in New York by the end of next year, from 90.91 cents now, based on the median of 12 analyst estimates compiled by Bloomberg. “It’s a double whammy,” said James Dailey, who manages $215 million of assets at TEAM Financial Management LLC in Harrisburg, Pennsylvania. “Cotton is facing the worst-case nightmare for a commodity, where you have a glut in physical production combined with weakening demand.”

COAL STOCKS AT MAJOR CHINA POWER PLANTS AT RECORD -NDRC
BEIJING, Nov 29 (Reuters) - Coal stocks in China's major power plants were at a record high of 80.15 million tonnes on Nov 20, enough to generate electricity for 21 days, the National Development and Reform Commission said on Tuesday.
Coal stocks at Qinhuangdao, the main port used to ship coal from northern China to the country's south, were at 6.78 million tonnes, which was up 14.7 percent from a year earlier and at a reasonable level, the commission said.

China unlikely to import gasoil for domestic use in Dec - trade
SINGAPORE, Nov 29 (Reuters) - China will likely stay away from the diesel spot market and not import the product for domestic use in December as ramped-up run rates from the country's top refiners are sufficient to meet domestic demand, industry sources said on Wednesday.
Leading oil refiner China Petroleum & Chemical Corp (Sinopec)   does not plan to import any gasoil for December, after importing an unusual 200,000 tonnes for November to cover domestic shortages, a source familiar with the matter said.  

U.S. crude oil imports down in September-EIA
WASHINGTON, Nov 29 (Reuters) - U.S. crude oil imports continued to decline, falling 223,000 barrels per day in September from a year earlier, the Energy Information Administration said on Tuesday.
Crude imports averaged 9.006 million bpd in September, down 2.4 percent from the 9.229 million bpd imported during the month in 2010.

Oil Trades Near Two-Week High on Bank Liquidity Move, U.S. Economy Outlook (Source: Bloomberg)
Oil traded near a two-week high in New York as steps by six central banks to make funds available and ease strains from Europe’s debt crisis countered a more-than projected rise in U.S. crude stockpiles. West Texas Intermediate futures were little changed after rising 0.6 percent yesterday, capping a second month of gains. The Federal Reserve and five other banks cut the cost of emergency funding for European banks. The Energy Department said U.S. oil supplies rose by 3.9 million barrels last week, compared with a forecast for a 50,000 barrel increase in a Bloomberg News survey. The U.K. said it’s pulling some diplomats out of Tehran after its embassy was attacked.
“Central bank intervention should have provided a stronger lead for oil, but there was that inventory build,” said Jonathan Barratt, a managing director of Commodity Broking Services Pty in Sydney, who sees technical resistance for New York crude at about $102.20. “The market is not looking at what’s happening in Iran. If it starts to develop then you may see a restriction of Iranian oil supply to Europe and that could push the spread between WTI and Brent back out.”

IRON ORE-SPOT AT 3-WEEK LOW, SHANGHAI REBAR SLIPS
SINGAPORE/SHANGHAI, Nov 30 (Reuters) - Offer prices for iron ore fell further on Wednesday as spot rates dropped to three-week lows with steelmakers in top producer China largely staying out of the market amid thin demand.
Iron ore with 62 percent iron content dropped 0.9 percent to $130.80 a tonne on Tuesday, said the Steel Index, the lowest since Nov. 8.

BALTIC INDEX RISES FOR 2ND DAY, RATES SEEN CAPPED
LONDON, Nov 29 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, rose for a second session on Tuesday helped by firmer bookings on the larger capesizes.
Nevertheless, the shipping sector was set to see more turmoil in the coming months as a supply glut and growing economic gloom would keep earnings under pressure.

20111201 1026 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures end higher, fueled by broad speculative buying as macroeconomic fears ease for the moment following the central-bank coordination aimed at improving liquidity for European banks. Sharp declines in the US dollar served as the catalyst for soy's gains as traders are optimistic the weaker dollar will spur export demand. However, futures ended well off intraday highs, paring gains amid lingering fears of slower-than-expected demand. CBOT January soy ends up 6 1/4c at $11.31 1/4 a bushel.

Soybean Meal/Oil (Source: CME)
Soy product futures bounced in step with advances in soybeans. The supportive influence of external financial markets buoyed prices, with soymeal garnering additional support from traders covering shorts at the end of the month after Tuesday's declines, analysts say. CBOT Jan soymeal ended up $4.20 at $292.20/short ton, and Jan soyoil ended up 0.07c at 49.50 cents/lb.

Palm oil dips; weather concerns cap losses
SINGAPORE, Nov 30 (Reuters) - Malaysian palm oil futures slipped on euro zone caution and thin trading volumes, but losses were limited by erratic weather that threatens to tighten supply in palm oil producer Malaysia.
"The market is simply tracking external markets such as the CBOT. It has been the third day that it is trying to break below the 3,050-ringgit level," said a dealer in Kuala Lumpur.