Indonesia's Astra Agro Jan-May CPO output falls 4.2 pct
JAKARTA, June 9 (Reuters) - Indonesia's largest listed plantation firm PT Astra Agro Lestari saw crude palm oil output from January-May 2010 fall 4.2 percent compared to the same period last year, it said in a statement.
Astra Agro said it produced 378,674 tonnes of crude palm oil in the period, compared to 395,334 tonnes in January-May 2009.
Wednesday, June 9, 2010
20100609 1318 FKLI Mid Day Hourly Chart Study.
Bollinger band reading : side way range bound.
MACD Histrogram : weakening, not much action from both buyer and seller.
Support : 1280, 1274, 1270 level.
Resistant : 1290, 1300, 1310 level
Comment :
Doing 6.5 points discount range bound FKLI closed 1 point higher in quiet volume traded for the morning session after regional market having mixed development. Hourly chart suggesting a side way range bound market with tighter market range development.
20100609 1247 FCPO Mid Day Hourly Chart Study.
Bollinger band reading : downside biased.
MACD Histrogram : getting lower, seller seize control.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
Fall in Dalian palm oil futures market and a weaker soy oil futures price affect FCPO price to continue weaker today in much better volume transacted but support seems holding well at previous testing level. Hourly chart reading suggesting a downside movement biased potential market testing lower support level.
20100609 1223 Global Economic News.
China: PBOC says debt crisis, trade to affect growth
China’s economic growth will be affected by the international sovereign debt crisis and trade frictions, the People’s Bank of China said. The world’s fastest-growing major economy still doesn’t have a “solid” recovery in domestic demand, and has to sustain consumer spending growth, the nation’s central bank said. Governments worldwide exiting stimulus spending will also impact its growth, it said. (Bloomberg)
China: Passing peak in growth insufficient to tame inflation
China’s policy makers may see evidence this week that economic growth peaked in the first quarter, strengthening their opposition to higher interest rates even as inflation accelerates. Consumer prices jumped 3%, hitting the government’s targeted full-year ceiling, after a 2.8% increase in April, according to the median of 32 estimates in a Bloomberg News survey before the 11 June release. In contrast, lending, investment and industrial output figures due this week may show a slower pace of gains, according to survey estimates. (Bloomberg)
Japan: Noda named Japan’s finance minister, tasked with tackling debt
Yoshihiko Noda was named Japanese finance minister, bringing support for spending cuts as Prime Minister Naoto Kan compiles a plan to rein in the world’s biggest public debt. Noda becomes the nation’s ninth finance chief in four years, replacing Kan, who takes office as premier following last week’s resignation of Yukio Hatoyama. (Bloomberg)
Japan : Current-account surplus widens on exports in April.
The gap rose 88% YoY to JPY 1.242tr (USD 13.6), the Ministry of Finance said. (Source: Bloomberg)
S. Korea : Unemployment rate declined to 3.2% last month from 3.7% in April, Statistics Korea said in Gwacheon, citing seasonally adjusted figures. (Source: Bloomberg)
Euro: Rescue fund created to combat debt crisis
European finance ministers put the finishing touches on a rescue fund being backed by 440bn Euros (USD524 bn) in national guarantees, seeking to halt the spread of Greece’s debt crisis. The European Financial Stability Facility would sell bonds backed by the guarantees and use the money it raises to make loans to euro-area nations in need, the finance ministers agreed. The new entity would sell debt only after an aid request is made by a country. (Bloomberg)
Euro : Countries to tighten budgets in 2011, defying U.S.'s pleas.
European governments vowed to raise taxes or cut spending next year, balking at U.S. pleas for looser budget policies to help speed the recovery from the worst recession since World War II. Budgets will remain "neutral" in 2010, becoming "clearly restrictive as of 2011 when recovery is expected to gain momentum," Luxembourg Prime Minister Jean-Claude Juncker told reporters after chairing a meeting of euro-region finance ministers in Luxembourg. (Source: Bloomberg)
U.K : Fitch says Cameron faces 'formidable' debt task.
Prime Minister David Cameron needs to accelerate budget-deficit cuts to protect Britain's top credit rating, Fitch Ratings said. The U.K. is lagging behind other European countries in publishing deficit-reduction plans as investor concerns over government debt loads increase. (Source: Bloomberg)
US: Small-business confidence increased in May
Confidence among US small businesses rose in May to the highest level since September 2008 as executives became more upbeat about the economy six months from now, a private survey found. The National Federation of Independent Business’s optimism index increased to 92.2 last month from 90.6 in April. (Bloomberg)
US: Bernanke says unemployment unlikely to fall quickly
Federal Reserve Chairman Ben S. Bernanke said the US recovery probably won’t quickly bring down the unemployment rate, which is likely to stay “high for a while.”Given the depth of the recession, the recovery is “moderate paced,” Bernanke said, in Washington._While the Fed will raise interest rates from a record low before the economy returns to “full employment,” Bernanke said officials don’t know when that process will start. The banking system isn’t fully healthy and lenders are “cautious” in providing credit, he said. (Bloomberg)
China’s economic growth will be affected by the international sovereign debt crisis and trade frictions, the People’s Bank of China said. The world’s fastest-growing major economy still doesn’t have a “solid” recovery in domestic demand, and has to sustain consumer spending growth, the nation’s central bank said. Governments worldwide exiting stimulus spending will also impact its growth, it said. (Bloomberg)
China: Passing peak in growth insufficient to tame inflation
China’s policy makers may see evidence this week that economic growth peaked in the first quarter, strengthening their opposition to higher interest rates even as inflation accelerates. Consumer prices jumped 3%, hitting the government’s targeted full-year ceiling, after a 2.8% increase in April, according to the median of 32 estimates in a Bloomberg News survey before the 11 June release. In contrast, lending, investment and industrial output figures due this week may show a slower pace of gains, according to survey estimates. (Bloomberg)
Japan: Noda named Japan’s finance minister, tasked with tackling debt
Yoshihiko Noda was named Japanese finance minister, bringing support for spending cuts as Prime Minister Naoto Kan compiles a plan to rein in the world’s biggest public debt. Noda becomes the nation’s ninth finance chief in four years, replacing Kan, who takes office as premier following last week’s resignation of Yukio Hatoyama. (Bloomberg)
Japan : Current-account surplus widens on exports in April.
The gap rose 88% YoY to JPY 1.242tr (USD 13.6), the Ministry of Finance said. (Source: Bloomberg)
S. Korea : Unemployment rate declined to 3.2% last month from 3.7% in April, Statistics Korea said in Gwacheon, citing seasonally adjusted figures. (Source: Bloomberg)
Euro: Rescue fund created to combat debt crisis
European finance ministers put the finishing touches on a rescue fund being backed by 440bn Euros (USD524 bn) in national guarantees, seeking to halt the spread of Greece’s debt crisis. The European Financial Stability Facility would sell bonds backed by the guarantees and use the money it raises to make loans to euro-area nations in need, the finance ministers agreed. The new entity would sell debt only after an aid request is made by a country. (Bloomberg)
Euro : Countries to tighten budgets in 2011, defying U.S.'s pleas.
European governments vowed to raise taxes or cut spending next year, balking at U.S. pleas for looser budget policies to help speed the recovery from the worst recession since World War II. Budgets will remain "neutral" in 2010, becoming "clearly restrictive as of 2011 when recovery is expected to gain momentum," Luxembourg Prime Minister Jean-Claude Juncker told reporters after chairing a meeting of euro-region finance ministers in Luxembourg. (Source: Bloomberg)
U.K : Fitch says Cameron faces 'formidable' debt task.
Prime Minister David Cameron needs to accelerate budget-deficit cuts to protect Britain's top credit rating, Fitch Ratings said. The U.K. is lagging behind other European countries in publishing deficit-reduction plans as investor concerns over government debt loads increase. (Source: Bloomberg)
US: Small-business confidence increased in May
Confidence among US small businesses rose in May to the highest level since September 2008 as executives became more upbeat about the economy six months from now, a private survey found. The National Federation of Independent Business’s optimism index increased to 92.2 last month from 90.6 in April. (Bloomberg)
US: Bernanke says unemployment unlikely to fall quickly
Federal Reserve Chairman Ben S. Bernanke said the US recovery probably won’t quickly bring down the unemployment rate, which is likely to stay “high for a while.”Given the depth of the recession, the recovery is “moderate paced,” Bernanke said, in Washington._While the Fed will raise interest rates from a record low before the economy returns to “full employment,” Bernanke said officials don’t know when that process will start. The banking system isn’t fully healthy and lenders are “cautious” in providing credit, he said. (Bloomberg)
20100609 1218 Malaysia Corporate News.
Separate listings for 3 AirAsia affiliates
The group plans to seek separate listings for AirAsia X, Thai AirAsia and Indonesia AirAsia so that investors can clearly choose to invest by geographic and business models. Long-haul affiliate AirAsia X may seek an initial public listing as early as the second half of next year. (BT)
Hong Leong maintains RM5bn EONCap offer
Hong Leong has asked Bank Negara on 4 June for more time to talk to EONCap as its offer has yet to reach the latter's shareholders. Hong Leong Bank says there is no change to the structure of its all-cash takeover offer for smaller rival EON Capital (EONCap). Hong Leong said its RM5.06bn offer as set out on 1 April this year would be maintained. It said this in response to a query over a report that its adviser had suggested a convertible equity option be structured into the offer. Bank Negara had earlier allowed for the two to be in talks only until 30 June. (BT)
Proton: Lotus not for sale now
Proton Holdings says its wholly-owned Lotus Group International Ltd is not for sale now although it has received unsolicited offers. “The board wishes to state that Lotus is and continues to be a strategic entity within Proton, as well as a technology catalyst,” it told Bursa Malaysia. It was clarifying a news report that said it may sell 40% of Lotus to its management team. (BT)
Mudajaya eyes India projects
Builder Mudajaya Group hopes to secure five ultra mega power projects (UMPPs) in India, each worth US$5bn (RM16.6bn). It was earlier reported that Mudajaya and R.K.M Powergen Private Ltd, an associate company of Mudajaya Corp (which in turn is a wholly-owned unit of Mudajaya Group) are in talks with a Malaysian independent power producer to form a consortium and bid for the UMPPs there. "We are still in talks and hope to get something out of this by the end of the month," said Mudajaya Group managing director Ng Ying Loong. He said the group is hopeful to at least secure one of the UMPPs, which has a generation capacity of 4,000 megawatts (MW) each. (BT)
Petronas hires bankers for US$2bn Petrochem IPO
National oil company Petroliam National (Petronas) has hired Deutsche Bank, CIMB and Morgan Stanley as
book-runners to advise on a planned US$2bn (RM6.64bn) listing of its petrochemical business, sources with
knowledge of the deal said. The listing will likely take place in the 4Q of this year depending on market conditions, one of the sources told Reuters. (FinancialDaily)
The group plans to seek separate listings for AirAsia X, Thai AirAsia and Indonesia AirAsia so that investors can clearly choose to invest by geographic and business models. Long-haul affiliate AirAsia X may seek an initial public listing as early as the second half of next year. (BT)
Hong Leong maintains RM5bn EONCap offer
Hong Leong has asked Bank Negara on 4 June for more time to talk to EONCap as its offer has yet to reach the latter's shareholders. Hong Leong Bank says there is no change to the structure of its all-cash takeover offer for smaller rival EON Capital (EONCap). Hong Leong said its RM5.06bn offer as set out on 1 April this year would be maintained. It said this in response to a query over a report that its adviser had suggested a convertible equity option be structured into the offer. Bank Negara had earlier allowed for the two to be in talks only until 30 June. (BT)
Proton: Lotus not for sale now
Proton Holdings says its wholly-owned Lotus Group International Ltd is not for sale now although it has received unsolicited offers. “The board wishes to state that Lotus is and continues to be a strategic entity within Proton, as well as a technology catalyst,” it told Bursa Malaysia. It was clarifying a news report that said it may sell 40% of Lotus to its management team. (BT)
Mudajaya eyes India projects
Builder Mudajaya Group hopes to secure five ultra mega power projects (UMPPs) in India, each worth US$5bn (RM16.6bn). It was earlier reported that Mudajaya and R.K.M Powergen Private Ltd, an associate company of Mudajaya Corp (which in turn is a wholly-owned unit of Mudajaya Group) are in talks with a Malaysian independent power producer to form a consortium and bid for the UMPPs there. "We are still in talks and hope to get something out of this by the end of the month," said Mudajaya Group managing director Ng Ying Loong. He said the group is hopeful to at least secure one of the UMPPs, which has a generation capacity of 4,000 megawatts (MW) each. (BT)
Petronas hires bankers for US$2bn Petrochem IPO
National oil company Petroliam National (Petronas) has hired Deutsche Bank, CIMB and Morgan Stanley as
book-runners to advise on a planned US$2bn (RM6.64bn) listing of its petrochemical business, sources with
knowledge of the deal said. The listing will likely take place in the 4Q of this year depending on market conditions, one of the sources told Reuters. (FinancialDaily)
20100609 0833 Soy Oil / Palm Oil Related News.
Soyoil futures ended higher, staging a modest bounce from recent downtrend. Profit-taking on meal/oil spreads, talk of improving soyoil demand internationally at the expense of palm oil and higher crude oil futures helped buoy prices, said Allendale's Joe Victor. July soyoil settled 0.20 cents, or 0.5%, higher at 36.67 cents per pound. Speculative funds were estimated buyers of 2,000 lots in soyoil(Source: CME).
Malaysia May Palm Oil Output Likely Rose 5%-7% -Market Sources(Source: CME)
Malaysia's palm oil output likely rose 5%-7% on month to around 1.37 million-1.40 million metric tons, but end-May palm inventories were probably little changed at 1.62 million-1.63 million tons because exports didn't rise enough to offset the seasonal increase in production, market participants said.
At the end of April, stocks were at 1.62 million tons, according to data from the government-linked Malaysian Palm Oil Board. The MPOB is expected to issue data on Malaysia's May palm oil production, exports and end-month stocks Thursday.
"The rise in production is likely to continue into June but (it) may be gradual as heavy rains may disrupt harvesting activities," said a senior executive of a Malaysia-based plantation company.
Rising production and inventories will likely continue to weigh on market sentiment, trade participants said.
"Prices may remain in a MYR2,400-MYR2,500/ton range," said a senior executive at a Kuala Lumpur-based commodities brokerage.
Output in May probably rose due to better yields at estates in peninsular Malaysia, while production in Sabah and Sarawak region saw only mild increases in yields, growers said.
Though May palm oil exports were higher at 1.32 million-1.33 million tons, many trade participants said market sentiment remained cautious due to rising inventories.
Domestic consumption in May is estimated around 155,000 tons and imports from Indonesia at 70,000 tons, with end-May stocks likely at 1.62 million tons, said a Singapore-based trading executive.
USDA Looking Into Possibility Of US Soyoil Exports To China(Source: CME)
The U.S. Department of Agriculture, at the behest of the U.S. soybean industry, is looking into how to facilitate soyoil exports to China now that the country restricted its purchases from Argentina.
China announced in April that Argentine soyoil did not meet Chinese standards and restricted trade, but the action is believed to be retaliation for Argentina's previous curbs on Chinese goods.
As a result, there appears to be an opening for U.S. suppliers to step in to do business with China, but they will need help from the USDA, according to U.S. soybean industry officials who asked not to be named because negotiations with China are ongoing.
China requires a government phytosanitary certificate to accompany the soyoil it imports. The certificate is to verify that there are no plant pests in the soyoil, but USDA does not traditionally issue certificates for soyoil because the product is processed in a way that would kill any pests.
USDA's Animal and Plant Health Inspection Service, a spokesperson said Monday, is looking into "options" to help U.S. soyoil exporters make sales to China.
"We have discussed things with our Chinese counterparts, which is necessary for any negotiations," the USDA spokesperson said.
China is the world's largest soyoil importer, according to the USDA, which predicted recently that Chinese imports will total 2.15 million metric tons in the 2010-11 marketing year. That's up from the 1.9 million tons USDA estimates that China imported in 2009-10.
China imported 2.7 million tons of soyoil in the 2007-08 marketing year and Argentina provided 1.8 million tons of that total, according to a February report compiled by USDA's Foreign Agriculture Service.
DuPont Receives USDA Approval For New Soybean
DuPont (DD) said Tuesday that the Department of Agriculture approved its Plenish high oleic soybean for cultivation in the U.S.
"This is a significant milestone as we work to develop biotech traits that provide direct consumer benefits and solid results in the fields," DuPont said.
The soybeans contain the highest oleic acid content of any soybean product under commercial development.
Plenish high oleic soybean oil also have 20% less saturated fat than commodity soybean oil, "making it a more attractive ingredient for consumer food products," DuPont said.
Palm oil flat as market eyes key industry data
KUALA LUMPUR, June 8 (Reuters) - Malaysian crude palm oil futures made little headway as investors waited for cues on stocks and production data due this week although concern about Europe's debt crisis sapped sentiment. "The Malaysian market is contained in a tight range, there may be some support if crude oil recovers," said a trader at a foreign brokerage.
Poor weather to curb rapeseed crop in west Europe
PARIS, June 8 (Reuters) - This summer's rapeseed harvest in western Europe is set to bring lower yields after unfavourable conditions at several growth stages, curbing output after bumper crops last year in top producers Germany and France.
The region was still on course for a large crop, while yield results were hard to call ahead of the critical pod-filling phase, analysts and traders said.
Ukraine rapeseed crop, exports to fall -consultant
KIEV, June 8 (Reuters) - Ukraine's 2010 rapeseed crop is likely to fall to 1.6 million tonnes from 1.85 million in 2009 due to a smaller harvesting area, UkrAgroConsult consultancy said on Tuesday.
The consultancy said in a statement a smaller crop would cause rapeseed exports to fall to 1.56 million tonnes in the 2010/11 season from 1.8 million in 2009/10.
Argentina says China soyoil row to be resolved soon
BUENOS AIRES, June 7 (Reuters) - Talks between Argentina and China over the Asian giant's freeze of Argentine soyoil imports are progressing and the dispute could be resolved soon, Argentina's agriculture minister said on Monday.
China, the world's largest buyer of soyoil, halted shipments from Argentina, the top global exporter, in late March in retaliation for anti-dumping measures imposed by the South American country on some Chinese manufactured goods.
Malaysia May Palm Oil Output Likely Rose 5%-7% -Market Sources(Source: CME)
Malaysia's palm oil output likely rose 5%-7% on month to around 1.37 million-1.40 million metric tons, but end-May palm inventories were probably little changed at 1.62 million-1.63 million tons because exports didn't rise enough to offset the seasonal increase in production, market participants said.
At the end of April, stocks were at 1.62 million tons, according to data from the government-linked Malaysian Palm Oil Board. The MPOB is expected to issue data on Malaysia's May palm oil production, exports and end-month stocks Thursday.
"The rise in production is likely to continue into June but (it) may be gradual as heavy rains may disrupt harvesting activities," said a senior executive of a Malaysia-based plantation company.
Rising production and inventories will likely continue to weigh on market sentiment, trade participants said.
"Prices may remain in a MYR2,400-MYR2,500/ton range," said a senior executive at a Kuala Lumpur-based commodities brokerage.
Output in May probably rose due to better yields at estates in peninsular Malaysia, while production in Sabah and Sarawak region saw only mild increases in yields, growers said.
Though May palm oil exports were higher at 1.32 million-1.33 million tons, many trade participants said market sentiment remained cautious due to rising inventories.
Domestic consumption in May is estimated around 155,000 tons and imports from Indonesia at 70,000 tons, with end-May stocks likely at 1.62 million tons, said a Singapore-based trading executive.
USDA Looking Into Possibility Of US Soyoil Exports To China(Source: CME)
The U.S. Department of Agriculture, at the behest of the U.S. soybean industry, is looking into how to facilitate soyoil exports to China now that the country restricted its purchases from Argentina.
China announced in April that Argentine soyoil did not meet Chinese standards and restricted trade, but the action is believed to be retaliation for Argentina's previous curbs on Chinese goods.
As a result, there appears to be an opening for U.S. suppliers to step in to do business with China, but they will need help from the USDA, according to U.S. soybean industry officials who asked not to be named because negotiations with China are ongoing.
China requires a government phytosanitary certificate to accompany the soyoil it imports. The certificate is to verify that there are no plant pests in the soyoil, but USDA does not traditionally issue certificates for soyoil because the product is processed in a way that would kill any pests.
USDA's Animal and Plant Health Inspection Service, a spokesperson said Monday, is looking into "options" to help U.S. soyoil exporters make sales to China.
"We have discussed things with our Chinese counterparts, which is necessary for any negotiations," the USDA spokesperson said.
China is the world's largest soyoil importer, according to the USDA, which predicted recently that Chinese imports will total 2.15 million metric tons in the 2010-11 marketing year. That's up from the 1.9 million tons USDA estimates that China imported in 2009-10.
China imported 2.7 million tons of soyoil in the 2007-08 marketing year and Argentina provided 1.8 million tons of that total, according to a February report compiled by USDA's Foreign Agriculture Service.
DuPont Receives USDA Approval For New Soybean
DuPont (DD) said Tuesday that the Department of Agriculture approved its Plenish high oleic soybean for cultivation in the U.S.
"This is a significant milestone as we work to develop biotech traits that provide direct consumer benefits and solid results in the fields," DuPont said.
The soybeans contain the highest oleic acid content of any soybean product under commercial development.
Plenish high oleic soybean oil also have 20% less saturated fat than commodity soybean oil, "making it a more attractive ingredient for consumer food products," DuPont said.
Palm oil flat as market eyes key industry data
KUALA LUMPUR, June 8 (Reuters) - Malaysian crude palm oil futures made little headway as investors waited for cues on stocks and production data due this week although concern about Europe's debt crisis sapped sentiment. "The Malaysian market is contained in a tight range, there may be some support if crude oil recovers," said a trader at a foreign brokerage.
Poor weather to curb rapeseed crop in west Europe
PARIS, June 8 (Reuters) - This summer's rapeseed harvest in western Europe is set to bring lower yields after unfavourable conditions at several growth stages, curbing output after bumper crops last year in top producers Germany and France.
The region was still on course for a large crop, while yield results were hard to call ahead of the critical pod-filling phase, analysts and traders said.
Ukraine rapeseed crop, exports to fall -consultant
KIEV, June 8 (Reuters) - Ukraine's 2010 rapeseed crop is likely to fall to 1.6 million tonnes from 1.85 million in 2009 due to a smaller harvesting area, UkrAgroConsult consultancy said on Tuesday.
The consultancy said in a statement a smaller crop would cause rapeseed exports to fall to 1.56 million tonnes in the 2010/11 season from 1.8 million in 2009/10.
Argentina says China soyoil row to be resolved soon
BUENOS AIRES, June 7 (Reuters) - Talks between Argentina and China over the Asian giant's freeze of Argentine soyoil imports are progressing and the dispute could be resolved soon, Argentina's agriculture minister said on Monday.
China, the world's largest buyer of soyoil, halted shipments from Argentina, the top global exporter, in late March in retaliation for anti-dumping measures imposed by the South American country on some Chinese manufactured goods.
Tuesday, June 8, 2010
20100608 1840 FCPO EOD Daily Chart Study.
Bollinger band reading : side way range bound downside biased.
MACD Histrogram : getting weaker, seller turned aggresive.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
FCPO continue to to head south by ended lower in improving volume traded after market opened near the higher of middle Bollinger band resistant level. The daily chart remained calling for a side way range bound downside biased market testing previous support 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.
20100608 1830 FKLI EOD Daily Chart Study.
Bollinger band reading : side way downside biased.
MACD Histrogram : reversed higher, seller reducing exposure.
Support : 1280, 1274, 1270 level.
Resistant : 1290, 1300, 1310 level
Comment :
FKLI opened and traded higher through out the day followed by last hourly selling pressure push price to closed only marginally higher in lesser volume transaction. Daily chart continue to shows a side way range bound reading
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/breakdown with larger cut loss and profit target.
20100608 1248 FCPO Mid Day Hourly Chart Study.
Bollinger band reading : side way downside biased.
MACD Histrogram : getting lower, seller still in.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
Half dead volume FCPO ended marginally lower for first session after market opened higher and retreat downward. Hourly chart reading suggesting a side way range bound downside biased market development.
20100608 1158 Global Economic News.
Taiwan: Exports climbed in May for seventh month
Taiwan’s exports climbed in May for a seventh month as a recovery in the global economy boosted demand for the island’s computers and electronics parts. Shipments abroad gained 57.9% from a year earlier, the Ministry of Finance said in Taipei. A separate report showed consumer prices rose 0.74% in May, slowing from 1.34% in April. (Bloomberg)
New Zealand: Wider budget cash deficit than forecast
New Zealand’s budget cash deficit was wider than the government forecast because of lower-than-expected tax receipts. The cash deficit totaled NZD9.83bn (USD6.5bn) in the 10 months ended April 30, or NZD275m wider than forecast in last month’s budget, the Treasury Department said in a statement released in Wellington. (Bloomberg)
Hungary: Needs extra budget cuts of 1%-1.5% of GDP
Hungarian Economy and Finance Minister Gyorgy Matolcsy said the nation’s government will need to take additional measures amounting to 1% to 1.5% of gross domestic product to be able to meet a deficit target agreed to with the country’s international creditors. Prime Minister Viktor Orban will unveil the measures aimed at reducing expenses, increasing revenue and fueling economic growth in Parliament. (Bloomberg)
EU: Stronger than mark proves Trichet currency stays
The euro’s 21% tumble from last year’s high has left the currency above the average level since its creation in 1999 and stronger than its predecessor, the deutsche mark. Even as the euro weakened 2.5% last week against the dollar and fell below USD1.20 for the first time since March 2006, it remains higher than the close of USD1.1837 on 4 Jan 1999, the first Monday of trading after its introduction, and stronger than the USD1.1842 monthly average since inception. (Bloomberg)
EU: To tighten budgets in 2011, defying US’ pleas
European governments vowed to raise taxes or cut spending next year, balking at US pleas for looser budget policies to help speed the recovery from the worst recession since World War II. Budgets will remain “neutral” in 2010, becoming “clearly restrictive as of 2011 when recovery is expected to gain momentum,” Luxembourg Prime Minister Jean-Claude Juncker told reporters. (Bloomberg)
UK: Prepares for cuts hurting ‘every single person’
UK Prime Minister David Cameron, preparing voters for the deepest spending cuts in a generation, said the previous Labour government left the public finances in a weaker state than he anticipated. “The overall scale of the problem is even worse than we thought,” Cameron said in a speech. “The decisions we make will affect every single person in our country. And the effects of those decisions will stay with us for years, perhaps decades to come.” (Bloomberg)
US: Consumer credit increased USD1bn in April
Consumer borrowing in the US rose in April for the first time in three months, indicating a recovery in bank lending will take time to develop. The USD1bn rise followed a revised USD5.4bn decrease in March that was previously reported as a USD2bn gain, the Federal Reserve said in Washington. (Bloomberg)
Taiwan’s exports climbed in May for a seventh month as a recovery in the global economy boosted demand for the island’s computers and electronics parts. Shipments abroad gained 57.9% from a year earlier, the Ministry of Finance said in Taipei. A separate report showed consumer prices rose 0.74% in May, slowing from 1.34% in April. (Bloomberg)
New Zealand: Wider budget cash deficit than forecast
New Zealand’s budget cash deficit was wider than the government forecast because of lower-than-expected tax receipts. The cash deficit totaled NZD9.83bn (USD6.5bn) in the 10 months ended April 30, or NZD275m wider than forecast in last month’s budget, the Treasury Department said in a statement released in Wellington. (Bloomberg)
Hungary: Needs extra budget cuts of 1%-1.5% of GDP
Hungarian Economy and Finance Minister Gyorgy Matolcsy said the nation’s government will need to take additional measures amounting to 1% to 1.5% of gross domestic product to be able to meet a deficit target agreed to with the country’s international creditors. Prime Minister Viktor Orban will unveil the measures aimed at reducing expenses, increasing revenue and fueling economic growth in Parliament. (Bloomberg)
EU: Stronger than mark proves Trichet currency stays
The euro’s 21% tumble from last year’s high has left the currency above the average level since its creation in 1999 and stronger than its predecessor, the deutsche mark. Even as the euro weakened 2.5% last week against the dollar and fell below USD1.20 for the first time since March 2006, it remains higher than the close of USD1.1837 on 4 Jan 1999, the first Monday of trading after its introduction, and stronger than the USD1.1842 monthly average since inception. (Bloomberg)
EU: To tighten budgets in 2011, defying US’ pleas
European governments vowed to raise taxes or cut spending next year, balking at US pleas for looser budget policies to help speed the recovery from the worst recession since World War II. Budgets will remain “neutral” in 2010, becoming “clearly restrictive as of 2011 when recovery is expected to gain momentum,” Luxembourg Prime Minister Jean-Claude Juncker told reporters. (Bloomberg)
UK: Prepares for cuts hurting ‘every single person’
UK Prime Minister David Cameron, preparing voters for the deepest spending cuts in a generation, said the previous Labour government left the public finances in a weaker state than he anticipated. “The overall scale of the problem is even worse than we thought,” Cameron said in a speech. “The decisions we make will affect every single person in our country. And the effects of those decisions will stay with us for years, perhaps decades to come.” (Bloomberg)
US: Consumer credit increased USD1bn in April
Consumer borrowing in the US rose in April for the first time in three months, indicating a recovery in bank lending will take time to develop. The USD1bn rise followed a revised USD5.4bn decrease in March that was previously reported as a USD2bn gain, the Federal Reserve said in Washington. (Bloomberg)
20100608 1153 Malaysia Corporate News.
RM30bn MRT plan
A special task force has been set up within the Cabinet Committee on Public Transport to study a proposal for a new three-line mass rapid transit (MRT) system costing more than RM30bn. Gamuda and MMC Corp had submitted a joint proposal to the Government for a new MRT system to improve public transport in the Klang Valley. While it aims to integrate the monorail and light rail transit (LRT) systems, the MRT lines will also connect the northwest and southeast of the Klang Valley. The committee is chaired by Prime Minister Datuk Seri Najib Razak. One of the lines will run through the Sungai Buloh, Kota Damansara, Kuala Lumpur and Cheras until Kajang. Another line will connect Sungai Buloh, Kepong, Kuala Lumpur and Serdang. The third line will loop around KL’s central business district. (NST)
CIMB to be lead adviser for Petronas’ petrochem IPO
CIMB Investment Bank is said to have secured the mandate to act as lead adviser for the initial public offering (IPO) of Petroliam Nasional’s (Petronas) petrochemical business, according to sources from the investment banking industry. Foreign banks that would also play an advisory role in the IPO included Deutsche Bank and Morgan Stanley. It is understood that the listing of Petronas’ petrochemical business is slated to take place towards the end of the year, after the planned September listing of Malaysia Marine and Heavy Engineering SB (MMHE), a wholly-owned unit of national carrier MISC Bhd, which in turn is a subsidiary of Petronas. Petronas’ petrochemical business registered revenue of RM13bn for the year ended 31 March 2009. (StarBiz)
Berjaya Retail gets SC nod for listing
The Securities Commission (SC) has approved the proposed listing of Berjaya Retail, the listing vehicle of Singer (M) SB and 7-Eleven Malaysia SB, on the Main Market of Bursa Malaysia. The SC also approved the proposed distribution of dividend-in-specie comprising ordinary shares in Berjaya Retail to entitled shareholders of Berjaya Corp in relation to the proposed listing. SC’s approval of the proposed listing is subject to several conditions, including the enhancement of Berjaya Retail’s disclosures in the listing prospectus with regard to, among others, details of the assumption of debts by Berjaya Retail, the irredeemable convertible preference shares to be issued, as well as certain risk factors. The commission requires Berjaya Retail to allocate 50% of the public spread requirement to bumiputra investors, including the shares offered under the balloted public offer portion, of which 50% are to be offered to retail bumiputra investors. (StarBiz)
No Bank Negara approval for Affin-EON Cap talks
The much-awaited counter offer by Affin Holdings for EON Capital seems to have hit a snag as Bank Negara is not giving permission to the former to begin negotiations. Affin had on 4 May submitted an application to Bank Negara to seek its approval to commence negotiations with EON Cap. There was also speculation that Affin was planning on making an offer for EON Cap through a general offer for the shares of the latter, at a price of around RM7.50 per share, higher than the existing offer by Hong Leong Bank (HLB). HLB’s cash offer is to buy the assets of EON Cap, which requires only a simple majority of EON Cap shareholders to approve. Bank Negara had not given any reason for its decision as at yesterday evening and declined to elaborate on the matter. (StarBiz)
Government yet to issue sport betting licence
The Government has yet to issue a sports betting licence and it has also yet to finalise the terms of the licence to Ascot Sports SB, says Prime Minister Datuk Seri Najib Razak. He said this in a written reply in Parliament on Monday, 7 June. Najib added the Government was still obtaining feedback from various quarters on the proposal to license sports betting in Malaysia "with the view of reducing and subsequently eradicating unlicensed betting in Malaysia". It was earlier reported that Ascot Sports had obtained the licence to run sports betting in Malaysia, prompting strong criticism from the opposition and certain quarters concerned about the social implications of legalised sports gambling. (Financial Daily)
RM146m net loss for Kenmark in Q4
After over a week of upheaval, Kenmark Industrial Co (M) reported a shocking set of financial results with a net loss of RM146m for its fourth quarter ended 31 March, compared with a net loss of RM84,000 in the previous corresponding period. Despite that, some stability has returned at its Port Klang plant where hundreds of its employees reported for work yesterday. The reasons for such a big loss in the quarter were lower revenue, higher cost of sales, provisions for doubtful debts and impairment of assets by certain subsidiaries, the furniture maker told Bursa Malaysia in a statement yesterday. (StarBiz)
Thai Bourse: CIMB listing in Bangkok to be delayed
The listing of Malaysia’s CIMB Group would be delayed for a few months from June, the Stock Exchange of Thailand (SET) said yesterday. “CIMB needs more time to study legal issues clearly,” SET chief marketing officer Vichet Tantiwanich told reporters. The Malaysian bank owns 93% of CIMB Thai Bank. “There will always be legal issues as part of any listing process, especially in this particular case where two separate jurisdictions are involved. However, we had deferred the listing primarily to wait for a more conducive environment for us to achieve our main objective of enhancing brand recognition,” said Effendy Shahul Hamid, CIMB Group head of group corporate communications said. (StarBiz)
Ingress units get RM72m job
Ingress Corp said the unincorporated joint venture between its subsidiaries, Ramusa Engineering SB and Multi Discovery SB, has received a letter of acceptance for a RM72m project from Tenaga Nasional. The contract involves the design, supply, erect and commissioning in relation to the proposed 275/132kV transmission line quadruple circuit between Kampung Pandan and Ampang East. Ingress said the 18-month project was expected to start in the third quarter of its current financial year ending 31 Jan 2011. (StarBiz)
BHIC buys into defence electronic products maker
Boustead Heavy Industries Corp (BHIC) subsidiary BHIC Defence Technologies SB (BHIC-DT) has proposed to acquire a 51% stake in defence electronic products maker Contraves Advanced Devices SB (CAD) from Rheinmetall Air Defence AG (RHAD) for an estimated RM26m. BHIC-DT on Monday, 7June inked a share sale agreement with RHAD for the proposed acquisition of the stake comprising 2.55m shares of RM1 each in CAD. RHAD will retain a 49% stake in CAD, and maintain operational management. Established in 1983, CAD's principal activities include the manufacturing of industrial printed circuit board assemblies (PCBAs) and box-build assemblies, production of modules, electronic subassemblies, antenna and electronic time relays for the automotive industry, assembly of semi-rigid and flexible RF cables and service and maintenance of military and defense equipment. (Financial Daily)
Retail : Sundry sale threat. Some 20,000 retailers nationwide will stop selling sugar, cooking oil and flour from June15 because they are unhappy with the Governments?s ruling that they need a license to sell these essential items. However, Domestic Trade, Co-operatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob is determined to go ahead with the license requirement despite the "threat", saying this was to check hoarding. (Source: The Star)
Crecom Burj: Crecom unit signs RM17b deal to buy aircraft. Crecom Burj Resources Ltd (CBRL), a wholly-owned subsidiary of Crecom Burj Bhd, has signed a USD5b (RM16.7b) purchase agreement with Russia-based IRKUT Corp for the acquisition of 50 MC21 passenger aircrafts. (Source: The Star)
External reserves : Decreased slightly in the second half of May 10 to RM312.2b (USD95.5b) as at 31 May 10 from RM314.2b (USD96.1b) on 14 May 10. The latest reserve amount is equivalent to 8.3 months of retained imports and 4.4 times short-term external debt. (Source: Bank Negara)
A special task force has been set up within the Cabinet Committee on Public Transport to study a proposal for a new three-line mass rapid transit (MRT) system costing more than RM30bn. Gamuda and MMC Corp had submitted a joint proposal to the Government for a new MRT system to improve public transport in the Klang Valley. While it aims to integrate the monorail and light rail transit (LRT) systems, the MRT lines will also connect the northwest and southeast of the Klang Valley. The committee is chaired by Prime Minister Datuk Seri Najib Razak. One of the lines will run through the Sungai Buloh, Kota Damansara, Kuala Lumpur and Cheras until Kajang. Another line will connect Sungai Buloh, Kepong, Kuala Lumpur and Serdang. The third line will loop around KL’s central business district. (NST)
CIMB to be lead adviser for Petronas’ petrochem IPO
CIMB Investment Bank is said to have secured the mandate to act as lead adviser for the initial public offering (IPO) of Petroliam Nasional’s (Petronas) petrochemical business, according to sources from the investment banking industry. Foreign banks that would also play an advisory role in the IPO included Deutsche Bank and Morgan Stanley. It is understood that the listing of Petronas’ petrochemical business is slated to take place towards the end of the year, after the planned September listing of Malaysia Marine and Heavy Engineering SB (MMHE), a wholly-owned unit of national carrier MISC Bhd, which in turn is a subsidiary of Petronas. Petronas’ petrochemical business registered revenue of RM13bn for the year ended 31 March 2009. (StarBiz)
Berjaya Retail gets SC nod for listing
The Securities Commission (SC) has approved the proposed listing of Berjaya Retail, the listing vehicle of Singer (M) SB and 7-Eleven Malaysia SB, on the Main Market of Bursa Malaysia. The SC also approved the proposed distribution of dividend-in-specie comprising ordinary shares in Berjaya Retail to entitled shareholders of Berjaya Corp in relation to the proposed listing. SC’s approval of the proposed listing is subject to several conditions, including the enhancement of Berjaya Retail’s disclosures in the listing prospectus with regard to, among others, details of the assumption of debts by Berjaya Retail, the irredeemable convertible preference shares to be issued, as well as certain risk factors. The commission requires Berjaya Retail to allocate 50% of the public spread requirement to bumiputra investors, including the shares offered under the balloted public offer portion, of which 50% are to be offered to retail bumiputra investors. (StarBiz)
No Bank Negara approval for Affin-EON Cap talks
The much-awaited counter offer by Affin Holdings for EON Capital seems to have hit a snag as Bank Negara is not giving permission to the former to begin negotiations. Affin had on 4 May submitted an application to Bank Negara to seek its approval to commence negotiations with EON Cap. There was also speculation that Affin was planning on making an offer for EON Cap through a general offer for the shares of the latter, at a price of around RM7.50 per share, higher than the existing offer by Hong Leong Bank (HLB). HLB’s cash offer is to buy the assets of EON Cap, which requires only a simple majority of EON Cap shareholders to approve. Bank Negara had not given any reason for its decision as at yesterday evening and declined to elaborate on the matter. (StarBiz)
Government yet to issue sport betting licence
The Government has yet to issue a sports betting licence and it has also yet to finalise the terms of the licence to Ascot Sports SB, says Prime Minister Datuk Seri Najib Razak. He said this in a written reply in Parliament on Monday, 7 June. Najib added the Government was still obtaining feedback from various quarters on the proposal to license sports betting in Malaysia "with the view of reducing and subsequently eradicating unlicensed betting in Malaysia". It was earlier reported that Ascot Sports had obtained the licence to run sports betting in Malaysia, prompting strong criticism from the opposition and certain quarters concerned about the social implications of legalised sports gambling. (Financial Daily)
RM146m net loss for Kenmark in Q4
After over a week of upheaval, Kenmark Industrial Co (M) reported a shocking set of financial results with a net loss of RM146m for its fourth quarter ended 31 March, compared with a net loss of RM84,000 in the previous corresponding period. Despite that, some stability has returned at its Port Klang plant where hundreds of its employees reported for work yesterday. The reasons for such a big loss in the quarter were lower revenue, higher cost of sales, provisions for doubtful debts and impairment of assets by certain subsidiaries, the furniture maker told Bursa Malaysia in a statement yesterday. (StarBiz)
Thai Bourse: CIMB listing in Bangkok to be delayed
The listing of Malaysia’s CIMB Group would be delayed for a few months from June, the Stock Exchange of Thailand (SET) said yesterday. “CIMB needs more time to study legal issues clearly,” SET chief marketing officer Vichet Tantiwanich told reporters. The Malaysian bank owns 93% of CIMB Thai Bank. “There will always be legal issues as part of any listing process, especially in this particular case where two separate jurisdictions are involved. However, we had deferred the listing primarily to wait for a more conducive environment for us to achieve our main objective of enhancing brand recognition,” said Effendy Shahul Hamid, CIMB Group head of group corporate communications said. (StarBiz)
Ingress units get RM72m job
Ingress Corp said the unincorporated joint venture between its subsidiaries, Ramusa Engineering SB and Multi Discovery SB, has received a letter of acceptance for a RM72m project from Tenaga Nasional. The contract involves the design, supply, erect and commissioning in relation to the proposed 275/132kV transmission line quadruple circuit between Kampung Pandan and Ampang East. Ingress said the 18-month project was expected to start in the third quarter of its current financial year ending 31 Jan 2011. (StarBiz)
BHIC buys into defence electronic products maker
Boustead Heavy Industries Corp (BHIC) subsidiary BHIC Defence Technologies SB (BHIC-DT) has proposed to acquire a 51% stake in defence electronic products maker Contraves Advanced Devices SB (CAD) from Rheinmetall Air Defence AG (RHAD) for an estimated RM26m. BHIC-DT on Monday, 7June inked a share sale agreement with RHAD for the proposed acquisition of the stake comprising 2.55m shares of RM1 each in CAD. RHAD will retain a 49% stake in CAD, and maintain operational management. Established in 1983, CAD's principal activities include the manufacturing of industrial printed circuit board assemblies (PCBAs) and box-build assemblies, production of modules, electronic subassemblies, antenna and electronic time relays for the automotive industry, assembly of semi-rigid and flexible RF cables and service and maintenance of military and defense equipment. (Financial Daily)
Retail : Sundry sale threat. Some 20,000 retailers nationwide will stop selling sugar, cooking oil and flour from June15 because they are unhappy with the Governments?s ruling that they need a license to sell these essential items. However, Domestic Trade, Co-operatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob is determined to go ahead with the license requirement despite the "threat", saying this was to check hoarding. (Source: The Star)
Crecom Burj: Crecom unit signs RM17b deal to buy aircraft. Crecom Burj Resources Ltd (CBRL), a wholly-owned subsidiary of Crecom Burj Bhd, has signed a USD5b (RM16.7b) purchase agreement with Russia-based IRKUT Corp for the acquisition of 50 MC21 passenger aircrafts. (Source: The Star)
External reserves : Decreased slightly in the second half of May 10 to RM312.2b (USD95.5b) as at 31 May 10 from RM314.2b (USD96.1b) on 14 May 10. The latest reserve amount is equivalent to 8.3 months of retained imports and 4.4 times short-term external debt. (Source: Bank Negara)
20100608 0845 Soy Oil and Palm Oil News.
Soy Oil Futures Commentary(Source: CME)
Soyoil futures stumbled, with the nearby July contract backpedaling to an eight-month low. Ample supplies and sluggish demand are bearish features weighing on prices and allowing soyoil to lose product share value on spreads. July soyoil settled 0.31 cent, or 0.8%, lower at 36.47 cents per pound.
Brazil Trade Group Boosts 2009-10 Soy Crop To 68.4M Tons(Source: CME)
The Brazilian Vegetable Oils Industry Association, or Abiove, on Monday raised its forecast for the recently harvested 2009-10 soy crop to 68.4 million metric tons from 67.9 million tons that it forecast April 28.
The 2008-09 crop produced 57.3 million tons.
Abiove also raised its data for exports, to 29.2 million tons versus 29 million tons in its prior estimate in April and 28 million tons a year ago.
Abiove said the year's soy crush was up at 33.1 million tons compared to 32.9 million tons in April and 30.7 million tons last year. Companies crush soybeans to make soymeal and soybean oil.
Abiove members include the world's largest soy-exporting companies, such as Bunge Ltd. (BG) and Archer Daniels Midland Co. (ADM). Brazil is the world's No. 2 soy producer after the U.S.
Malaysia Palm Oil Stocks To Rise As Buyers Favor Soyoil(Source: CME)
Malaysia's palm oil inventory levels are likely to rise in the second half of the year as output in the second-largest palm oil producer in the world increases and major importers opt for soyoil due to a narrow spread to palm, affecting export growth, according to industry analyst James Fry.
"There is no reason to doubt (the rise in stocks) especially since the Ramadan boost to exports ends relatively soon and China and India are favoring soyoil right now," Fry, who is also chairman at London-based agribusiness consultancy firm LMC International Ltd., told Dow Jones Newswires via email over the weekend.
He also said CPO production in Malaysia is likely to rise from the 2009 output level of 17.6 million metric tons as replanting activities in Malaysia remain slow while underlying growth in mature areas in the country may boost supplies.
Palm prices have declined 8.8% since the beginning of the year as palm's wide discount to soyoil disappeared, steering buyers to cheaper soyoil.
CPO prices may remain under downward pressure even as soyoil prices remain low as a record soybean harvest from South America boosts availability.
"Also, the El Nino problems mentioned earlier this year seem to have been overstated," Fry said.
Earlier this year, industry analysts and growers said Malaysia may fall short of the 2010 output target of 18.1 million tons due to the El Nino weather condition, which reduces rain, affects soil moisture and saps yields.
Pakistan CPO Imports May Rise Due To Import Duty Cut -Executive(Source: CME)
Pakistan, the third-largest buyer of palm oil after India and China, may step up purchases of crude palm oil after the government reduced the import duty on the commodity in a new federal budget, a senior executive said Monday.
"Much of the rise in CPO imports will likely come from Indonesia," a Pakistan-based trading executive at Jaleel Brothers Ltd. said by phone. "Should Pakistan complete the free trade agreement with Indonesia, CPO purchases from Indonesia will be higher."
Pakistan reduced the import duty on CPO to PKR8,000 ($94) a metric ton from PKR9,000 in the budget released Saturday.
The country sources around 95% of its palm oil from Malaysia and the remainder from Indonesia.
In the last few years, Pakistan has bought more CPO from Indonesia due to a quota Malaysia imposes on CPO exports to encourage sales of higher-value refined palm products.
Pakistan relies heavily on imports to supply its edible oil consumption of 3 million tons a year, as it produces only 800,000 tons of oil a year from sunflowers, rapeseeds and cottonseeds.
Economic concerns drag palm oil to one-week lows
KUALA LUMPUR, June 7 (Reuters) - Malaysian crude palm oil futures dropped to one-week lows as renewed economic concerns hit financial markets and the U.S. dollar gained.
"The market is looking to see how far the Malaysian benchmark can go. We expect it to go as low as 2,400 ringgit because crude oil has been losing ground," said a trader with a foreign commodities brokerage.
India May oilmeal exports fall 7th straight month
NEW DELHI, June 7 (Reuters) - India's May oilmeal exports slumped 3 percent from a year earlier, falling for the seventh straight month, on low domestic crushing and reduced demand from Vietnam and Japan, a trade body said.
India's oilmeal exports declined to 173,604 tonnes in May from 178,350 tonnes a year earlier due to poor demand mainly from southeast Asian countries, the Solvent Extractors' Association of India said in a statement on Monday.
Pakistan cuts duty on palm oil import in new budget
ISLAMABAD, June 6 (Reuters) - Pakistan reduced duties on crude palm oil imports by more than 11 percent, to 8,000 rupees ($94) per tonne, as part of the 2010/11 budget, custom officials said on Sunday.
"The duty cut will come into effect from today," Munir Qureshi, a top custom official at the Federal Board of Revenue, told Reuters.
Soyoil futures stumbled, with the nearby July contract backpedaling to an eight-month low. Ample supplies and sluggish demand are bearish features weighing on prices and allowing soyoil to lose product share value on spreads. July soyoil settled 0.31 cent, or 0.8%, lower at 36.47 cents per pound.
Brazil Trade Group Boosts 2009-10 Soy Crop To 68.4M Tons(Source: CME)
The Brazilian Vegetable Oils Industry Association, or Abiove, on Monday raised its forecast for the recently harvested 2009-10 soy crop to 68.4 million metric tons from 67.9 million tons that it forecast April 28.
The 2008-09 crop produced 57.3 million tons.
Abiove also raised its data for exports, to 29.2 million tons versus 29 million tons in its prior estimate in April and 28 million tons a year ago.
Abiove said the year's soy crush was up at 33.1 million tons compared to 32.9 million tons in April and 30.7 million tons last year. Companies crush soybeans to make soymeal and soybean oil.
Abiove members include the world's largest soy-exporting companies, such as Bunge Ltd. (BG) and Archer Daniels Midland Co. (ADM). Brazil is the world's No. 2 soy producer after the U.S.
Malaysia Palm Oil Stocks To Rise As Buyers Favor Soyoil(Source: CME)
Malaysia's palm oil inventory levels are likely to rise in the second half of the year as output in the second-largest palm oil producer in the world increases and major importers opt for soyoil due to a narrow spread to palm, affecting export growth, according to industry analyst James Fry.
"There is no reason to doubt (the rise in stocks) especially since the Ramadan boost to exports ends relatively soon and China and India are favoring soyoil right now," Fry, who is also chairman at London-based agribusiness consultancy firm LMC International Ltd., told Dow Jones Newswires via email over the weekend.
He also said CPO production in Malaysia is likely to rise from the 2009 output level of 17.6 million metric tons as replanting activities in Malaysia remain slow while underlying growth in mature areas in the country may boost supplies.
Palm prices have declined 8.8% since the beginning of the year as palm's wide discount to soyoil disappeared, steering buyers to cheaper soyoil.
CPO prices may remain under downward pressure even as soyoil prices remain low as a record soybean harvest from South America boosts availability.
"Also, the El Nino problems mentioned earlier this year seem to have been overstated," Fry said.
Earlier this year, industry analysts and growers said Malaysia may fall short of the 2010 output target of 18.1 million tons due to the El Nino weather condition, which reduces rain, affects soil moisture and saps yields.
Pakistan CPO Imports May Rise Due To Import Duty Cut -Executive(Source: CME)
Pakistan, the third-largest buyer of palm oil after India and China, may step up purchases of crude palm oil after the government reduced the import duty on the commodity in a new federal budget, a senior executive said Monday.
"Much of the rise in CPO imports will likely come from Indonesia," a Pakistan-based trading executive at Jaleel Brothers Ltd. said by phone. "Should Pakistan complete the free trade agreement with Indonesia, CPO purchases from Indonesia will be higher."
Pakistan reduced the import duty on CPO to PKR8,000 ($94) a metric ton from PKR9,000 in the budget released Saturday.
The country sources around 95% of its palm oil from Malaysia and the remainder from Indonesia.
In the last few years, Pakistan has bought more CPO from Indonesia due to a quota Malaysia imposes on CPO exports to encourage sales of higher-value refined palm products.
Pakistan relies heavily on imports to supply its edible oil consumption of 3 million tons a year, as it produces only 800,000 tons of oil a year from sunflowers, rapeseeds and cottonseeds.
Economic concerns drag palm oil to one-week lows
KUALA LUMPUR, June 7 (Reuters) - Malaysian crude palm oil futures dropped to one-week lows as renewed economic concerns hit financial markets and the U.S. dollar gained.
"The market is looking to see how far the Malaysian benchmark can go. We expect it to go as low as 2,400 ringgit because crude oil has been losing ground," said a trader with a foreign commodities brokerage.
India May oilmeal exports fall 7th straight month
NEW DELHI, June 7 (Reuters) - India's May oilmeal exports slumped 3 percent from a year earlier, falling for the seventh straight month, on low domestic crushing and reduced demand from Vietnam and Japan, a trade body said.
India's oilmeal exports declined to 173,604 tonnes in May from 178,350 tonnes a year earlier due to poor demand mainly from southeast Asian countries, the Solvent Extractors' Association of India said in a statement on Monday.
Pakistan cuts duty on palm oil import in new budget
ISLAMABAD, June 6 (Reuters) - Pakistan reduced duties on crude palm oil imports by more than 11 percent, to 8,000 rupees ($94) per tonne, as part of the 2010/11 budget, custom officials said on Sunday.
"The duty cut will come into effect from today," Munir Qureshi, a top custom official at the Federal Board of Revenue, told Reuters.
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