Japan: BOJ under pressure to boost economy as yen threatens expansion
Prime Minister Naoto Kan’s government is stepping up pressure on the Bank of Japan to spur growth as it tries to jump start a slowing economy under threat by a currency at a 15-year high. The ruling Democratic Party of Japan called on the central bank to “speedily take further steps” in a stimulus package proposal presented to Kan in Tokyo yesterday. (Bloomberg)
Japan: Consumer prices fall in July as economic growth slows . Prices excluding fresh food slid 1.1% YoY. (Source: Bloomberg)
Japan: Unemployment rate unexpectedly falls to 5.2% in July . The median forecast of 24 economists surveyed by Bloomberg News was 5.3%. (Source: Bloomberg)
E.U: Loans to households and companies grew in July . Loans to the private sector rose 0.9% YoY after growing an annual 0.5% YoY in June. That's the strongest increase since June 2009. M3 money supply, which the ECB uses as a gauge of future inflation, increased an annual 0.2% YoY in July, the same rate recorded in the previous month. (Source: Bloomberg)
China: Direct investment in the U.S. plunged in 1H10 even as its overall foreign acquisitions rose to a record, underscoring the nation's efforts to diversify its portfolio, according to the Heritage Foundation. China's non-bond investments in the U.S. slumped 47% YoY to USD 1.6b, while those in the rest of the world surged 34% to USD 29b. (Source: Bloomberg)
Singapore: Factory output in July rises at slowest pace in eight months as pharmaceutical companies reduced output after a ramp-up earlier this year. Manufacturing climbed 9.9% YoY, after a revised 29.5% YoY gain in June. (Source: Bloomberg)
Philippines: Bangko Sentral ng Pilipinas kept key rate at 4% to support recovery . The Philippine central bank kept its benchmark interest rate at a record low as easing inflation gives it room to support the nation's economic recovery. That's the lowest level since central bank data started in 1990. (Source: Bloomberg)
Philippines: Economic growth unexpectedly accelerated in 2Q10 to the fastest pace in three years as consumer and government spending increased. GDP increased 7.9% YoY compared with a revised 7.8% YoY gain in the three months through March. (Source: Bloomberg)
Australia: Business investment unexpectedly fell 4% in 2Q10 , a sign companies are delaying spending plans on renewed concern about the global economy and doubts over a local mining tax. Capital spending dropped 4% QoQ from the previous three months, when it declined a revised 1% QoQ. (Source: Bloomberg)
EU: Confidence drops to 6-year low, survey shows
European’s confidence in the European Union dropped to a 6-year low as the 27-nation bloc battled the Greeceled debt crisis, according to the latest Eurobarometer survey. 49% of respondents said their nation’s membership in the EU was “a good thing”, according to the poll of more than 26,000 people released by the EU executive arm in Brussels. (Bloomberg)
EU: Loan growth accelerates as economy recovers
Loans to households and companies in Europe grew at the fastest pace in 13 months in July after the economic recovery gathered steam. Loans to the private sector rose 0.9% from a year earlier after growing an annual 0.5% in June. M3 money supply, a gauge of future inflation, increased an annual 0.2% in July, the same rate recorded in the previous month. (Bloomberg)
US: Jobless claims decrease more than forecast
Applications for jobless benefits fell more than forecast last week, easing concern American employers are again slashing payrolls as the economy slows. Claims dropped by 31,000, the first decline in a month, to 473,000 in the week ended 21 Aug. The total number of people receiving government payments exceeded 10m for the first time in 4 months, reflecting an increase in those getting extended benefits. (Bloomberg)
Friday, August 27, 2010
20100827 1021 Malaysia Corporate News.
F&N to buy 23% of Cocoaland
Fraser and Neave Holdings (F&N), Malaysia's largest soft drinks manufacturer and distributor, has agreed to acquire a 23.0% stake in Cocoaland Holdings for RM54.6m to expand in the food business. Under the deal, F&N is proposing to buy 39.6m new shares in confectionery maker Cocoaland for RM1.38 each. Cocoaland's last traded price prior to its suspension was at RM2.87 a share. Cocoaland has rallied by 119% this year. F&N chief executive officer Datuk Ng Jui Sia said the stake in Cocoaland, its first in a food manufacturer, will provide the group with a strategic and synergistic foothold to advance its food products in its existing regional, world-class food and beverage (F&B) enterprise. (BT)
Tenaga proposes 1-for-4 bonus issue of up to 1.12bn shares
Tenaga Nasional has proposed a one–for-four bonus issue of up to 1.12bn shares of RM1 each with the entitlement date to be announced later. As at 31 May 2010, its paid-up capital stood at RM4.35bn, comprising 4.35bn shares while there were 129.85m shares outstanding ESOS options. In a statement to Bursa Malaysia yesterday, Tenaga said the bonus issue would be carried out by capitalizing up to RM1.12bn from its share premium account, which amounted to RM5.27bn as at 31 August 2009. (Financial Daily)
Masterskill to buy land
Masterskill Education Group says wholly-owned Masterskill (M) SB will buy nine plots of freehold land for RM30.04m to build the group’s flagship university campus. The land in Kajang measures a total of 19.77 hectares. The university campus, dubbed Masterskill University College of Health Sciences, will comprise an academic block with about 700,000 sq ft in built-up area and hostel facilities of about one million sq ft in built-up area. The campus will be able to accommodate around 20,000 students, Masterskill said in a statement. (BT)
JPK to be axed from Bursa
JPK Holdings will be de-listed from Bursa Malaysia Securities on 8 Sept 2010, after a filing to submit its regularization plans to the regulators. In a filing to the exchange yesterday, the trading of the securities of the company will be suspended with effect from 6 Sept. “The securities of the company will be de-listed on 8 Sept unless an appeal is submitted to Bursa Securities on or before 3 Sept 2010. Any appeal submitted after the appeal timeframe will not be considered,” it said. JPK said it would be appealing against the decisions. (Malaysian Reserve)
Affin and BEA form strategic partnership
Affin Holdings (AHB) and The Bank of East Asia Ltd, Hong Kong (BEA) have formally established a partnership to jointly develop business in China, Hong Kong, Malaysia and other key markets where they both operate. Both parties signed a memorandum of understanding yesterday for the strategic partnership to signify the beginning of a long-term collaboration between AHB and BEA. The signing outlines the framework for a mutually beneficial co-development of businesses between AHB and BEA. AHB said the strategic partnership would enhance AHB’s ability to support its customers who want to have a business presence in China and Hong Kong by leveraging on BEA’s strong presence and extensive branch network there. (StarBiz)
Axiata's CFO joins Goldman
Datuk Yusof Annuar Yaacob, the group chief financial officer of Axiata Group, will leave the group at the end of November this year. He will join US investment bank Goldman Sachs as the managing director for Goldman Sachs Corporate Finance Malaysia, Axiata said in a statement. (BT)
AirAsia may consider aerobridges at new LCCT
Budget carrier AirAsia may consider using aerobridges at the new permanent low-cost carrier terminal (LCCT) to aide passenger convenience, says its chief. "MAHB (Malaysia Airports Holdings) has given us a proposal on using aerobridges and if we can get the right economic deal, we will consider it," AirAsia chief executive officer Datuk Seri Dr Tony Fernandes said. Fernandes added that the airline would still be able to meet its 25-minute turnaround time with the usage of aero-bridges. (BT)
Autos: Ford, Mazda to invest RM1.1b in Thailand plant. Ford Motor Company and Mazda Motor Corp will invest USD350m (RM1.1b) in their joint-venture AutoAlliance Thailand (AAT) plant in Rayong to support the production of their next generation compact pickup trucks. The investment will enable production of the new Mazda and Ford compact pickups to start in mid-2011. (Source: Malaysian Reserve)
Banking: No fee for unilateral wa'd currency hedging. Islamic financial institutions can enter into forward foreign currency transactions for hedging purposes based on unilateral wa'd (promise) but no fee is to be charged on the promisee, according to Bank Negara's Syariah Advisory Council. The fees were not to be charged on the promisee in view that upfront cash payment for forward currency transaction would lead to a bilateral wa'd which was not allowed by syariah. (Source: The Star)
Green Packet: To supply WIMAX modems to Saudi's GO. Green Packet Bhd has sealed a deal to supply its WIMAX modems to Saudi Arabia's first and fastest growing 4G operator, GO (Etihad Atheeb Telecom Co). Green Packet said GO held a fixed line license on the 3.5 GHz frequency spectrum across 13 regional divisions of Saudi Arabia, and aimed to revolutionise internet broadband services by bringing the latest telecommunications wired and wireless technologies to the kingdom. (Source: The Edge Financial Daily)
Markets: CDRC to revamp RM2.2b debts. The revived Corporate Debt Restructuring Committee (CDRC) has agreed to help restructure RM2.2b of debts from 13 applicants. The companies that CDRC agreed to help in recent months included KBB Resources Bhd, Tracoma Holdings Bhd, Limahsoon Bhd, Carotech Bhd and LCL Corp Bhd. (Source: The Star)
Pantech: New plant will raise manufacturing revenue. Pantech Group Holdings Bhd, a pipes, fitting and flow-control products manufacturer, expects its manufacturing division revenue to increase by 50% when its new plant in Pasir Gudang, Johor, commences operation by year-end. It is sited on part of a 8ha land and has an initial capacity of 7,000 tonnes annually, producing mainly stainless steel welded pipes and fittings. (Source: The Star)
Plantation: Felda settlers set to receive RM11m award. Felda has to pay RM11m in damages to 354 settlers after the agency's final bid to appeal against the payment order was refused by the Federal Court here. (Source: The Star)
Zelan: To focus on Gombak project. Engineering and construction group Zelan Bhd will focus on the Gombak Integrated Transport Terminal (GITT) project, which is expected to provide an income stream of RM900m over 25 years. To be concluded in the next couple of months, the project would contribute an additional RM220m to Zelan's orderbook. (Source: Business Times)
Fraser and Neave Holdings (F&N), Malaysia's largest soft drinks manufacturer and distributor, has agreed to acquire a 23.0% stake in Cocoaland Holdings for RM54.6m to expand in the food business. Under the deal, F&N is proposing to buy 39.6m new shares in confectionery maker Cocoaland for RM1.38 each. Cocoaland's last traded price prior to its suspension was at RM2.87 a share. Cocoaland has rallied by 119% this year. F&N chief executive officer Datuk Ng Jui Sia said the stake in Cocoaland, its first in a food manufacturer, will provide the group with a strategic and synergistic foothold to advance its food products in its existing regional, world-class food and beverage (F&B) enterprise. (BT)
Tenaga proposes 1-for-4 bonus issue of up to 1.12bn shares
Tenaga Nasional has proposed a one–for-four bonus issue of up to 1.12bn shares of RM1 each with the entitlement date to be announced later. As at 31 May 2010, its paid-up capital stood at RM4.35bn, comprising 4.35bn shares while there were 129.85m shares outstanding ESOS options. In a statement to Bursa Malaysia yesterday, Tenaga said the bonus issue would be carried out by capitalizing up to RM1.12bn from its share premium account, which amounted to RM5.27bn as at 31 August 2009. (Financial Daily)
Masterskill to buy land
Masterskill Education Group says wholly-owned Masterskill (M) SB will buy nine plots of freehold land for RM30.04m to build the group’s flagship university campus. The land in Kajang measures a total of 19.77 hectares. The university campus, dubbed Masterskill University College of Health Sciences, will comprise an academic block with about 700,000 sq ft in built-up area and hostel facilities of about one million sq ft in built-up area. The campus will be able to accommodate around 20,000 students, Masterskill said in a statement. (BT)
JPK to be axed from Bursa
JPK Holdings will be de-listed from Bursa Malaysia Securities on 8 Sept 2010, after a filing to submit its regularization plans to the regulators. In a filing to the exchange yesterday, the trading of the securities of the company will be suspended with effect from 6 Sept. “The securities of the company will be de-listed on 8 Sept unless an appeal is submitted to Bursa Securities on or before 3 Sept 2010. Any appeal submitted after the appeal timeframe will not be considered,” it said. JPK said it would be appealing against the decisions. (Malaysian Reserve)
Affin and BEA form strategic partnership
Affin Holdings (AHB) and The Bank of East Asia Ltd, Hong Kong (BEA) have formally established a partnership to jointly develop business in China, Hong Kong, Malaysia and other key markets where they both operate. Both parties signed a memorandum of understanding yesterday for the strategic partnership to signify the beginning of a long-term collaboration between AHB and BEA. The signing outlines the framework for a mutually beneficial co-development of businesses between AHB and BEA. AHB said the strategic partnership would enhance AHB’s ability to support its customers who want to have a business presence in China and Hong Kong by leveraging on BEA’s strong presence and extensive branch network there. (StarBiz)
Axiata's CFO joins Goldman
Datuk Yusof Annuar Yaacob, the group chief financial officer of Axiata Group, will leave the group at the end of November this year. He will join US investment bank Goldman Sachs as the managing director for Goldman Sachs Corporate Finance Malaysia, Axiata said in a statement. (BT)
AirAsia may consider aerobridges at new LCCT
Budget carrier AirAsia may consider using aerobridges at the new permanent low-cost carrier terminal (LCCT) to aide passenger convenience, says its chief. "MAHB (Malaysia Airports Holdings) has given us a proposal on using aerobridges and if we can get the right economic deal, we will consider it," AirAsia chief executive officer Datuk Seri Dr Tony Fernandes said. Fernandes added that the airline would still be able to meet its 25-minute turnaround time with the usage of aero-bridges. (BT)
Autos: Ford, Mazda to invest RM1.1b in Thailand plant. Ford Motor Company and Mazda Motor Corp will invest USD350m (RM1.1b) in their joint-venture AutoAlliance Thailand (AAT) plant in Rayong to support the production of their next generation compact pickup trucks. The investment will enable production of the new Mazda and Ford compact pickups to start in mid-2011. (Source: Malaysian Reserve)
Banking: No fee for unilateral wa'd currency hedging. Islamic financial institutions can enter into forward foreign currency transactions for hedging purposes based on unilateral wa'd (promise) but no fee is to be charged on the promisee, according to Bank Negara's Syariah Advisory Council. The fees were not to be charged on the promisee in view that upfront cash payment for forward currency transaction would lead to a bilateral wa'd which was not allowed by syariah. (Source: The Star)
Green Packet: To supply WIMAX modems to Saudi's GO. Green Packet Bhd has sealed a deal to supply its WIMAX modems to Saudi Arabia's first and fastest growing 4G operator, GO (Etihad Atheeb Telecom Co). Green Packet said GO held a fixed line license on the 3.5 GHz frequency spectrum across 13 regional divisions of Saudi Arabia, and aimed to revolutionise internet broadband services by bringing the latest telecommunications wired and wireless technologies to the kingdom. (Source: The Edge Financial Daily)
Markets: CDRC to revamp RM2.2b debts. The revived Corporate Debt Restructuring Committee (CDRC) has agreed to help restructure RM2.2b of debts from 13 applicants. The companies that CDRC agreed to help in recent months included KBB Resources Bhd, Tracoma Holdings Bhd, Limahsoon Bhd, Carotech Bhd and LCL Corp Bhd. (Source: The Star)
Pantech: New plant will raise manufacturing revenue. Pantech Group Holdings Bhd, a pipes, fitting and flow-control products manufacturer, expects its manufacturing division revenue to increase by 50% when its new plant in Pasir Gudang, Johor, commences operation by year-end. It is sited on part of a 8ha land and has an initial capacity of 7,000 tonnes annually, producing mainly stainless steel welded pipes and fittings. (Source: The Star)
Plantation: Felda settlers set to receive RM11m award. Felda has to pay RM11m in damages to 354 settlers after the agency's final bid to appeal against the payment order was refused by the Federal Court here. (Source: The Star)
Zelan: To focus on Gombak project. Engineering and construction group Zelan Bhd will focus on the Gombak Integrated Transport Terminal (GITT) project, which is expected to provide an income stream of RM900m over 25 years. To be concluded in the next couple of months, the project would contribute an additional RM220m to Zelan's orderbook. (Source: Business Times)
20100827 1013 Global Market News.
Stocks slip; market tense before Bernanke
SYDNEY, Aug 27 (Reuters) - Asian stocks fell on Friday to round off a week of losses as persistent worries over whether the U.S. economy may suffer another recession kept investors dour.
"What Bernanke says or doesn't say will determine our fate next week," said Don Williams, chief investment officer at Platypus Asset Management in Australia.
GLOBAL MARKETS: Stocks slip; market tense before Bernanke
SYDNEY, Aug 27 (Reuters) - Asian stocks fell on Friday to round off a week of losses as persistent worries over whether the U.S. economy may suffer another recession kept investors dour. "What Bernanke says or doesn't say will determine our fate next week," said Don Williams, chief investment officer at Platypus Asset Management in Australia.
GLOBAL MARKETS: Stocks slip; market tense before Bernanke
SYDNEY, Aug 27 (Reuters) - Asian stocks fell on Friday to round off a week of losses as persistent worries over whether the U.S. economy may suffer another recession kept investors dour.
"What Bernanke says or doesn't say will determine our fate next week," said Don Williams, chief investment officer at Platypus Asset Management in Australia.
OIL: Crude snaps two-day rally ahead of U.S. GDP report
SINGAPORE, Aug 27 (Reuters) - Crude snapped a two-day rally on Friday, heading for a third straight week of losses, as an expected downgrade in U.S. economic growth fed disquiet over record oil inventories and weak housing and manufacturing data. The U.S. government on Friday is expected to revise second-quarter gross domestic product (GDP) growth lower to an annual pace of 1.4 percent, from 2.4 percent, according to a Reuters survey.
US July new home sales sag, durables orders soft
WASHINGTON, Aug 25 (Reuters) - New U.S. home sales slumped to the slowest pace on record in July and orders for costly durable goods were weak, heightening fears the economy was at risk of another downturn. The reports on Wednesday from the Commerce Department suggested growth could slow materially without government support and some economists saw the risk of a contraction in output in the third quarter.
FOREX-Euro rises, supported by higher European shares
LONDON, Aug 26 (Reuters) - The euro rose on Thursday as a rise in global share prices prompted investors to pick up riskier currencies, but gains were capped as more weak U.S. economic data indicated the pace of recovery was slowing. "The market is still looking at stocks and how the ongoing correlation between risky assets and euro/dollar holds up, and it still seems to be holding up well," said Jeremy Stretch, head of currency strategy at CIBC.
World stocks rebound from lows, yen slips
LONDON, Aug 26 (Reuters) - World stocks bounced off seven-week lows and Japan's yen weakened in another burst of the risk-on, risk-off trading that has dominated financial markets this year. "Companies have been reporting reasonable results," said David Buik, partner at BGC Partners. "But whether a rally can be sustained is to be seen, there is nothing to say the bad news is all over."
SYDNEY, Aug 27 (Reuters) - Asian stocks fell on Friday to round off a week of losses as persistent worries over whether the U.S. economy may suffer another recession kept investors dour.
"What Bernanke says or doesn't say will determine our fate next week," said Don Williams, chief investment officer at Platypus Asset Management in Australia.
GLOBAL MARKETS: Stocks slip; market tense before Bernanke
SYDNEY, Aug 27 (Reuters) - Asian stocks fell on Friday to round off a week of losses as persistent worries over whether the U.S. economy may suffer another recession kept investors dour. "What Bernanke says or doesn't say will determine our fate next week," said Don Williams, chief investment officer at Platypus Asset Management in Australia.
GLOBAL MARKETS: Stocks slip; market tense before Bernanke
SYDNEY, Aug 27 (Reuters) - Asian stocks fell on Friday to round off a week of losses as persistent worries over whether the U.S. economy may suffer another recession kept investors dour.
"What Bernanke says or doesn't say will determine our fate next week," said Don Williams, chief investment officer at Platypus Asset Management in Australia.
OIL: Crude snaps two-day rally ahead of U.S. GDP report
SINGAPORE, Aug 27 (Reuters) - Crude snapped a two-day rally on Friday, heading for a third straight week of losses, as an expected downgrade in U.S. economic growth fed disquiet over record oil inventories and weak housing and manufacturing data. The U.S. government on Friday is expected to revise second-quarter gross domestic product (GDP) growth lower to an annual pace of 1.4 percent, from 2.4 percent, according to a Reuters survey.
US July new home sales sag, durables orders soft
WASHINGTON, Aug 25 (Reuters) - New U.S. home sales slumped to the slowest pace on record in July and orders for costly durable goods were weak, heightening fears the economy was at risk of another downturn. The reports on Wednesday from the Commerce Department suggested growth could slow materially without government support and some economists saw the risk of a contraction in output in the third quarter.
FOREX-Euro rises, supported by higher European shares
LONDON, Aug 26 (Reuters) - The euro rose on Thursday as a rise in global share prices prompted investors to pick up riskier currencies, but gains were capped as more weak U.S. economic data indicated the pace of recovery was slowing. "The market is still looking at stocks and how the ongoing correlation between risky assets and euro/dollar holds up, and it still seems to be holding up well," said Jeremy Stretch, head of currency strategy at CIBC.
World stocks rebound from lows, yen slips
LONDON, Aug 26 (Reuters) - World stocks bounced off seven-week lows and Japan's yen weakened in another burst of the risk-on, risk-off trading that has dominated financial markets this year. "Companies have been reporting reasonable results," said David Buik, partner at BGC Partners. "But whether a rally can be sustained is to be seen, there is nothing to say the bad news is all over."
20100827 1012 Soy Oil & Palm Oil Related News.
Soy product futures ended higher, bouncing in step with advances in soybeans. Lingering concerns about the yield potential of the U.S. soy crop provided strength for soyoil and soymeal, analysts said. December soyoil settled 0.36 cent, or 0.9%, higher at 40.08 cents per pound. December soymeal ended $6.30, or 2.2%, higher at $298.30 per short ton. (Source: CME)
India 2010-11 Soybean Output Likely Up On Better Rains, Yield (Source: CME)
Soybean production in India is likely to rise in the next crop year, driven by better yields due to good rains in major growing regions, industry executives said Thursday. The country is estimated to have produced about 8.5 million metric tons in the crop year ending Sept. 30, according to data from the Central Organisation for Oil Industry and Trade. The overall production in 2010-11 will be better than the current year, but it is too early to give any figure, said Govindbhai Patel, managing partner of Dipak Enterprises and an expert on vegetable oil industry. The soybean production in 2009-10 fell about 5% as India suffered its worst drought in almost four decades, with monsoon rains 22% below average. But the monsoon rains are near normal this year so far, boosting the prospects of crop growth. The crop condition is quite good in major soybean growing regions as the rains are coming in regular intervals, said S.K. Srivastava, director of National Research Centre for Soybean.
The sowing of soybean--the main oilseed grown in the summer season--in India starts in June and continues through July. Total area under summer-sown oilseeds has increased 5.4% to 16.14 million hectares until Aug. 20, according to the latest government data. Total yield is likely to improve from the this year's level of 1.1 tons per hectare, Srivastava said. Despite expectation of higher production and large stocks India's edible imports in 2010-11 may remain mostly steady compared with the current year, industry executives said. India--which imports nearly half of its edible oil needs--is likely to import 8.2 million-8.4 million tons in the marketing year ending Oct. 31, said Pradip Desai, managing director of Mumbai-based importer Palmtrade Services Pvt. Ltd. It's difficult to see edible oil imports going above 8.5 million or 8.6 million tons in 2010-11, he added. India is the world's second-largest edible oil importer.
It imports palm oil mostly from Indonesia and Malaysia, and soyoil from Argentina and Brazil.
Indonesia sets Sept CPO export tax at 6 pct, cocoa steady
JAKARTA, Aug 26 (Reuters) - Indonesia will set its crude palm oil (CPO) export tax at 6 percent in September, up from 3 percent in August, the trade ministry said on Thursday, confirming an earlier Reuters story. It also raised the CPO base export price to $804 per tonne, from $725 per tonne in August. The trade ministry kept its export tax for cocoa beans at 10 percent in September, unchanged from August. But the cocoa base export price which is used to calculate the tax will be cut to $2,673 a tonne in September from $2,738 a tonne in August.
Palm oil rebounds from low on technicals, oils
KUALA LUMPUR, Aug 26 (Reuters) - Malaysian crude palm oil futures rebounded from one-month lows hit the previous day due to technical buying and firmer oils markets. "The market is up on technical retracement and a correction after a fall earlier. It also followed external soy, soyoil and crude oil markets that edged higher (in the afternoon session)," said a trader with a foreign brokerage in Kuala Lumpur.
Port closure seen hurting India Aug soymeal exports
MUMBAI, Aug 26 (Reuters) - India's soymeal exports in August are likely to fall short by about 50,000 tonnes compared to July, despite higher crushing as a closure of a key port in western India cut shipments, two oil millers and one port official said. Operations at Mumbai port were affected for nearly a fortnight in August after two Panamanian ships collided just off Mumbai's coast on Aug. 7.
India 2010-11 Soybean Output Likely Up On Better Rains, Yield (Source: CME)
Soybean production in India is likely to rise in the next crop year, driven by better yields due to good rains in major growing regions, industry executives said Thursday. The country is estimated to have produced about 8.5 million metric tons in the crop year ending Sept. 30, according to data from the Central Organisation for Oil Industry and Trade. The overall production in 2010-11 will be better than the current year, but it is too early to give any figure, said Govindbhai Patel, managing partner of Dipak Enterprises and an expert on vegetable oil industry. The soybean production in 2009-10 fell about 5% as India suffered its worst drought in almost four decades, with monsoon rains 22% below average. But the monsoon rains are near normal this year so far, boosting the prospects of crop growth. The crop condition is quite good in major soybean growing regions as the rains are coming in regular intervals, said S.K. Srivastava, director of National Research Centre for Soybean.
The sowing of soybean--the main oilseed grown in the summer season--in India starts in June and continues through July. Total area under summer-sown oilseeds has increased 5.4% to 16.14 million hectares until Aug. 20, according to the latest government data. Total yield is likely to improve from the this year's level of 1.1 tons per hectare, Srivastava said. Despite expectation of higher production and large stocks India's edible imports in 2010-11 may remain mostly steady compared with the current year, industry executives said. India--which imports nearly half of its edible oil needs--is likely to import 8.2 million-8.4 million tons in the marketing year ending Oct. 31, said Pradip Desai, managing director of Mumbai-based importer Palmtrade Services Pvt. Ltd. It's difficult to see edible oil imports going above 8.5 million or 8.6 million tons in 2010-11, he added. India is the world's second-largest edible oil importer.
It imports palm oil mostly from Indonesia and Malaysia, and soyoil from Argentina and Brazil.
Indonesia sets Sept CPO export tax at 6 pct, cocoa steady
JAKARTA, Aug 26 (Reuters) - Indonesia will set its crude palm oil (CPO) export tax at 6 percent in September, up from 3 percent in August, the trade ministry said on Thursday, confirming an earlier Reuters story. It also raised the CPO base export price to $804 per tonne, from $725 per tonne in August. The trade ministry kept its export tax for cocoa beans at 10 percent in September, unchanged from August. But the cocoa base export price which is used to calculate the tax will be cut to $2,673 a tonne in September from $2,738 a tonne in August.
Palm oil rebounds from low on technicals, oils
KUALA LUMPUR, Aug 26 (Reuters) - Malaysian crude palm oil futures rebounded from one-month lows hit the previous day due to technical buying and firmer oils markets. "The market is up on technical retracement and a correction after a fall earlier. It also followed external soy, soyoil and crude oil markets that edged higher (in the afternoon session)," said a trader with a foreign brokerage in Kuala Lumpur.
Port closure seen hurting India Aug soymeal exports
MUMBAI, Aug 26 (Reuters) - India's soymeal exports in August are likely to fall short by about 50,000 tonnes compared to July, despite higher crushing as a closure of a key port in western India cut shipments, two oil millers and one port official said. Operations at Mumbai port were affected for nearly a fortnight in August after two Panamanian ships collided just off Mumbai's coast on Aug. 7.
20100827 0950 FCPO EOD Daily Chart Study.(26 Aug 2010)
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : turned upward, seller take profit.
Support : 2520, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
Recovering soy oil and crude oil futures prices plus Indonesia imposed a higher export tax on crude palm oil lead FCPO to closed at the high of the day gained 44 points in lesser volume traded. Daily chart formed a wide range up bar candle after market opened higher and climb upward but overall the reading still suggesting a downside biased with correction taking place market development.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with quick cut loss and profit target.
Thursday, August 26, 2010
20100826 1758 FKLI EOD Daily Chart Study.
Bollinger band reading : upside biased.
MACD Histrogram : resumed rising, buyer returned .
Support : 1405, 1395, 1385, 1375 level.
Resistant : 1425, 1445, 1470 level.
Comment :
Rallied again FKLI closed boldly at the high of the day in ultra high volume changed hand as buyer last hour pushed market to record another new year high. Daily chart formed a wide range up bar candle resumed uptrend movement after 2 days of correction with the outlook resume upside biased reading.
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.
20100826 1426 FKLI Mid Day Hourly Chart Study.
Bollinger band reading : side way range bound little downside biased.
MACD Histrogram : recovering, both buyer and seller doing rollover.
Support : 1395, 1385, 1375 level.
Resistant : 1405, 1425, 1445 level.
Comment :
Traded range bound FKLI closed first session higher in improved volume transaction mostly consist of rollover to forward month activities. Hourly chart wise, market recovered upward after penetrated below lower Bollinger band level with the reading suggesting a side way range bound little downside biased market development.
20100826 1424 FCPO Mid Day Hourly Chart Study.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : getting higher, seller taking profit.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2520, 2550 level.
Comment :
Tight range quiet trading volume FCPO recovered slightly having pullback correction after 2 days significant dropped. Hourly chart formed few doji bars candle traded side ways after price touched lower Bollinger band yesterday with the reading suggesting a correction range bound downside biased market. Mean while, Indonesia just announced a raised in export tax to 6% for the month of September compare to 3% for August.
20100826 0959 Global Economics News.
Germany: Business confidence unexpectedly rose to a three year high in August . The Munich-based Ifo institute said its business climate index, based on a survey of 7,000 executives, increased to 106.7 from 106.2 in July. That's the fourth straight monthly increase and the highest level since June 2007. (Source: Bloomberg)
Singapore: Bond sales are accelerating as companies on an island vying for the title of world's fastest growing economy exploit the lowest funding costs in at least two decades to finance expansion. Temasek Holdings Pte. and CapitaLand Ltd. led borrowers that raised USD14.1b this year, topping the record USD13.2b of notes sold in 2001, according to data compiled by Bloomberg. (Source: Bloomberg)
Thailand: Raises interest rate, signals more increases
Thailand’s central bank raised its benchmark interest rate and signaled further increases after the economy overcame political unrest to grow faster than estimated last quarter. The baht strengthened and stocks fell. The Bank of Thailand increased the one-day bond repurchase rate by a quarter of a percentage point to 1.75% after its first increase in almost two years last month, it said in Bangkok. The decision was predicted by 11 out of 12 economists surveyed by Bloomberg News. (Bloomberg)
Japan: Export growth slows as global demand wanes
Japan’s export growth slowed for a fifth month in July, adding to risks in an economy under threat from the yen’s surge to a 15-year high against the dollar. Overseas shipments advanced 23.5% in July from a year earlier, less than June’s 27.7% gain, the Finance Ministry said in Tokyo. The median estimate of 18 economists surveyed by Bloomberg News was for a 21.8% increase. From a month earlier, exports fell 1.4%, the third monthly drop. (Bloomberg)
Korea: Bank of Korea governor says ’vigilance’ needed on inflation
South Korea should be alert to inflation risks even as the global recovery is set to be slower than expected, central bank Governor Kim Choong Soo said. Asia’s fourth-largest economy needs “vigilance against the possibility of the awakening of inflation expectations” with its consumer price index projected to accelerate, Kim said in a speech in New York hosted by the Korea Society on 25 Aug. A “double-dip recession” or recurrence of the global financial crisis is unlikely, though the pace of the recovery in major economies such as the US will be “slower than expected,” Kim said. (Bloomberg)
India: RBI says curbing inflation is its top priority
India’s central bank said controlling inflation is its top priority, a stance that may fuel speculation it will raise interest rates for the fifth time since mid-March. “Inflation containment may have to receive precedence over the other policy objectives,” the Reserve Bank of India said in its annual report for the year ended 30 June. “Inflation has emerged as a major concern.” India’s 10-year government bond yields climbed to the highest in more than three months, stoked by inflation concerns. (Bloomberg)
EU: UK budget ‘regressive’, hits poor hardest, IFS says
The UK coalition government’s assertion that its budget cuts will hit the richest households more than the poorest is challenged by a research of Institute for Fiscal Studies. An analysis of all benefit cuts announced in the 22 June budget shows the measures to be “regressive,” with the poorest households hit hardest, the IFS said. “The distributional effect of all tax and benefit reforms due to be implemented by 2014-15 is clearly regressive within the bottom nine decile groups of the income distribution when losses are expressed as a percentage of net income,” the London-based IFS said in a report. (Bloomberg)
US: Durables, housing signal recession risk
Orders for durable goods in the US increased less than forecast in July and sales of new homes unexpectedly dropped, increasing the risk of a renewed recession in the world’s largest economy. Bookings for goods made to last at least three years rose 0.3%, figures from the Commerce Department showed in Washington. Excluding transportation equipment, demand fell by the most in more than a year. Purchases of new dwellings fell 12% to an annual pace of 276,000, the weakest since data began in 1963, figures from the same agency showed. The reports indicate capital spending, one of the few bright spots in a weakening economic recovery, is slowing as the second half begins, while a lack of jobs is crippling housing. (Bloomberg)
Singapore: Bond sales are accelerating as companies on an island vying for the title of world's fastest growing economy exploit the lowest funding costs in at least two decades to finance expansion. Temasek Holdings Pte. and CapitaLand Ltd. led borrowers that raised USD14.1b this year, topping the record USD13.2b of notes sold in 2001, according to data compiled by Bloomberg. (Source: Bloomberg)
Thailand: Raises interest rate, signals more increases
Thailand’s central bank raised its benchmark interest rate and signaled further increases after the economy overcame political unrest to grow faster than estimated last quarter. The baht strengthened and stocks fell. The Bank of Thailand increased the one-day bond repurchase rate by a quarter of a percentage point to 1.75% after its first increase in almost two years last month, it said in Bangkok. The decision was predicted by 11 out of 12 economists surveyed by Bloomberg News. (Bloomberg)
Japan: Export growth slows as global demand wanes
Japan’s export growth slowed for a fifth month in July, adding to risks in an economy under threat from the yen’s surge to a 15-year high against the dollar. Overseas shipments advanced 23.5% in July from a year earlier, less than June’s 27.7% gain, the Finance Ministry said in Tokyo. The median estimate of 18 economists surveyed by Bloomberg News was for a 21.8% increase. From a month earlier, exports fell 1.4%, the third monthly drop. (Bloomberg)
Korea: Bank of Korea governor says ’vigilance’ needed on inflation
South Korea should be alert to inflation risks even as the global recovery is set to be slower than expected, central bank Governor Kim Choong Soo said. Asia’s fourth-largest economy needs “vigilance against the possibility of the awakening of inflation expectations” with its consumer price index projected to accelerate, Kim said in a speech in New York hosted by the Korea Society on 25 Aug. A “double-dip recession” or recurrence of the global financial crisis is unlikely, though the pace of the recovery in major economies such as the US will be “slower than expected,” Kim said. (Bloomberg)
India: RBI says curbing inflation is its top priority
India’s central bank said controlling inflation is its top priority, a stance that may fuel speculation it will raise interest rates for the fifth time since mid-March. “Inflation containment may have to receive precedence over the other policy objectives,” the Reserve Bank of India said in its annual report for the year ended 30 June. “Inflation has emerged as a major concern.” India’s 10-year government bond yields climbed to the highest in more than three months, stoked by inflation concerns. (Bloomberg)
EU: UK budget ‘regressive’, hits poor hardest, IFS says
The UK coalition government’s assertion that its budget cuts will hit the richest households more than the poorest is challenged by a research of Institute for Fiscal Studies. An analysis of all benefit cuts announced in the 22 June budget shows the measures to be “regressive,” with the poorest households hit hardest, the IFS said. “The distributional effect of all tax and benefit reforms due to be implemented by 2014-15 is clearly regressive within the bottom nine decile groups of the income distribution when losses are expressed as a percentage of net income,” the London-based IFS said in a report. (Bloomberg)
US: Durables, housing signal recession risk
Orders for durable goods in the US increased less than forecast in July and sales of new homes unexpectedly dropped, increasing the risk of a renewed recession in the world’s largest economy. Bookings for goods made to last at least three years rose 0.3%, figures from the Commerce Department showed in Washington. Excluding transportation equipment, demand fell by the most in more than a year. Purchases of new dwellings fell 12% to an annual pace of 276,000, the weakest since data began in 1963, figures from the same agency showed. The reports indicate capital spending, one of the few bright spots in a weakening economic recovery, is slowing as the second half begins, while a lack of jobs is crippling housing. (Bloomberg)
20100826 0958 Malaysia Corporate News.
Axis REIT: Eyes RM200m commercial assets. Axis REIT Managers Bhd (ARMB) plans to buy a cluster of commercial assets worth more than RM200m in Petaling Jaya and Shah Alam to expand its portfolio. CEO Stewart LaBrooy said it will place out about 20% of its current fund size to raise up to RM160m for the acquisitions. Its latest deal is to buy Tesco hypermarket in Johor, Axis Technology Centre in Petaling Jaya and Axis PDI Centre in Klang worth RM200m. (Source: Business Times)
Daya Materials: Signs JV with Singapore parties to tap O&G sector. Daya Materials Bhd is teaming up with 2 Singapore-registered companies to venture into the provision of services and equipment for companies involved in exploration in the oil and gas (O&G) industry. Its unit, OCI Energy Sdn Bhd, yesterday signed a JV agreement with Sheffield Offshore Services Pte Ltd and Ascent Offshore (Singapore) Pte Ltd. The estimated initial capital contribution by OCI for the project was RM51,000 for a 51% stake while the remaining 49% would be held by Ascent. (Source: The Edge Financial Daily)
IJM: Eyes another RM2b in its order book. IJM Corporation Bhd which already has an order book of RM3.6b is looking to add another RM2b worth of jobs into its stable in the current financial year ending March 31, 2011. (Source: The Edge Financial Daily)
MMC and Zelan: To jointly bid for 10MP infrastructure projects. MMC Corporation Bhd has entered into a JV agreement with Zelan Bhd to bid for infrastructure projects under the 10th Malaysia Plan (10MP). The JV is named MMC Zelan Sdn Bhd, with MMC having a 60% stake and Zelan the remaining 40%. (Source: The Edge Financial Daily)
Technology: Seagate unveils world's first 3 terabyte external drive. Seagate announced Tuesday the world's 1st 3 terabyte (TB) external desktop drive. With 3TB of capacity, people can store up to 120 HD movies, 1,500 video games, thousands of photos or countless hours of digital music. (Source: The Edge Financial Daily)
Yinson: Going big into marine haulage. Logistic operator Yinson Holdings Bhd is going big into marine haulage business by investing RM70m to buy a platform supply vessel (PSV) this month through its subsidiary Yinson Marine Service Sdn Bhd (YMS). The Singapore-made PSV will be leased to PetroVietnam Technical Services Corp, a subsidiary of state-owned Vietnam Oil and Gas Group. (Source: Business Times)
MMC: Harbour construction tender at Jazan City aborted
MMC Corporation said yesterday the tender for the harbor construction at Jazan Economic City (JEC) in Saudi Arabia has been aborted due to impending change to the Jazan Oil Refinery’s location as requested by Saudi Aramco. “The port location will likewise be changed accordingly. Details are being studied to finalize the changes,” it said. In a filing with Bursa Malaysia Securities yesterday, MMC said the discussions leading to a decision for the power plant to be developed by Saudi Electricity Company and the desalination plant by Saline Water Conversion Corporation of Saudi Arabia were ongoing. (Financial Daily)
Cocoaland finds ‘sweet’ partner in F&N
In yet another move that signals more mergers & acquisitions in the food industry, Fraser and Neave Holdings (F&N) will take up a 23.08% stake in Cocoaland Holdings, sources say. Cocoaland is Southeast Asia’s largest producer of fruit gummies and one of Malaysia’s leading manufacturers of snacks and chocolate products. The company produces Koko Jelly, Rotong, Mum’s Bake and Lot 100 gummies, as well as Ribena pastilles for GlaxoSmithKline and Sugus gummies for the Wrigley company. (Financial Daily)
UDA in talks with Pudu JV partners
UDA Holdings is talking to a few joint-venture partners to develop the former Pudu jail site and the 22-acre land next to it, but UDA will remain the sole master developer. The project is estimated to cost about RM5bn. UDA chairman Datuk Nur Jazlan Mohamed said: “We will try to keep it at RM5bn.” (StarBiz)
Axiata to pay maiden dividend in fiscal 2011
Axiata Group, which owns Malaysia’s second-largest telecommunication company, plans to pay its maiden dividend in 2011 even as growth may slow down in the second-half this year. For a start, Axiata announced a policy to return at least 30% of its net profit as dividends to shareholders with the payout ratio to be increased progressively over time, said Axiata president and group CEO Datuk Seri Jamaludin Ibrahim at a press conference in Kuala Lumpur. (Malaysian Reserve)
Project rollout too slow, say builders
"In the last four quarters, the total value of new construction projects awarded has declined," newly-elected MBAM president Kwan Foh Kwai said. Bank Negara Malaysia's statistics indicate that the construction sector registered 8.7% growth in the first quarter of this year, but it slowed to 4.1% in the second. "If we're not vigilant, the construction sector's growth will continue to slow down, stagnate or, worse, shrink like in 2004, 2005 and 2006," he said. (BT)
Daya Materials: Signs JV with Singapore parties to tap O&G sector. Daya Materials Bhd is teaming up with 2 Singapore-registered companies to venture into the provision of services and equipment for companies involved in exploration in the oil and gas (O&G) industry. Its unit, OCI Energy Sdn Bhd, yesterday signed a JV agreement with Sheffield Offshore Services Pte Ltd and Ascent Offshore (Singapore) Pte Ltd. The estimated initial capital contribution by OCI for the project was RM51,000 for a 51% stake while the remaining 49% would be held by Ascent. (Source: The Edge Financial Daily)
IJM: Eyes another RM2b in its order book. IJM Corporation Bhd which already has an order book of RM3.6b is looking to add another RM2b worth of jobs into its stable in the current financial year ending March 31, 2011. (Source: The Edge Financial Daily)
MMC and Zelan: To jointly bid for 10MP infrastructure projects. MMC Corporation Bhd has entered into a JV agreement with Zelan Bhd to bid for infrastructure projects under the 10th Malaysia Plan (10MP). The JV is named MMC Zelan Sdn Bhd, with MMC having a 60% stake and Zelan the remaining 40%. (Source: The Edge Financial Daily)
Technology: Seagate unveils world's first 3 terabyte external drive. Seagate announced Tuesday the world's 1st 3 terabyte (TB) external desktop drive. With 3TB of capacity, people can store up to 120 HD movies, 1,500 video games, thousands of photos or countless hours of digital music. (Source: The Edge Financial Daily)
Yinson: Going big into marine haulage. Logistic operator Yinson Holdings Bhd is going big into marine haulage business by investing RM70m to buy a platform supply vessel (PSV) this month through its subsidiary Yinson Marine Service Sdn Bhd (YMS). The Singapore-made PSV will be leased to PetroVietnam Technical Services Corp, a subsidiary of state-owned Vietnam Oil and Gas Group. (Source: Business Times)
MMC: Harbour construction tender at Jazan City aborted
MMC Corporation said yesterday the tender for the harbor construction at Jazan Economic City (JEC) in Saudi Arabia has been aborted due to impending change to the Jazan Oil Refinery’s location as requested by Saudi Aramco. “The port location will likewise be changed accordingly. Details are being studied to finalize the changes,” it said. In a filing with Bursa Malaysia Securities yesterday, MMC said the discussions leading to a decision for the power plant to be developed by Saudi Electricity Company and the desalination plant by Saline Water Conversion Corporation of Saudi Arabia were ongoing. (Financial Daily)
Cocoaland finds ‘sweet’ partner in F&N
In yet another move that signals more mergers & acquisitions in the food industry, Fraser and Neave Holdings (F&N) will take up a 23.08% stake in Cocoaland Holdings, sources say. Cocoaland is Southeast Asia’s largest producer of fruit gummies and one of Malaysia’s leading manufacturers of snacks and chocolate products. The company produces Koko Jelly, Rotong, Mum’s Bake and Lot 100 gummies, as well as Ribena pastilles for GlaxoSmithKline and Sugus gummies for the Wrigley company. (Financial Daily)
UDA in talks with Pudu JV partners
UDA Holdings is talking to a few joint-venture partners to develop the former Pudu jail site and the 22-acre land next to it, but UDA will remain the sole master developer. The project is estimated to cost about RM5bn. UDA chairman Datuk Nur Jazlan Mohamed said: “We will try to keep it at RM5bn.” (StarBiz)
Axiata to pay maiden dividend in fiscal 2011
Axiata Group, which owns Malaysia’s second-largest telecommunication company, plans to pay its maiden dividend in 2011 even as growth may slow down in the second-half this year. For a start, Axiata announced a policy to return at least 30% of its net profit as dividends to shareholders with the payout ratio to be increased progressively over time, said Axiata president and group CEO Datuk Seri Jamaludin Ibrahim at a press conference in Kuala Lumpur. (Malaysian Reserve)
Project rollout too slow, say builders
"In the last four quarters, the total value of new construction projects awarded has declined," newly-elected MBAM president Kwan Foh Kwai said. Bank Negara Malaysia's statistics indicate that the construction sector registered 8.7% growth in the first quarter of this year, but it slowed to 4.1% in the second. "If we're not vigilant, the construction sector's growth will continue to slow down, stagnate or, worse, shrink like in 2004, 2005 and 2006," he said. (BT)
20100826 0948 Global Market News.
Asia stocks up; yen eases, eyes on govt, BOJ
TOKYO, Aug 26 (Reuters) - Asian stocks rose as investors hunted for bargains among recently beaten-down shares, while the yen pulled further away from 15-year highs as investors wondered whether Japanese officials would take fresh steps to curb the currency's strength and spur economic growth.
"There are increasing signs of a slowing global economy, and on top of that you have Japan's situation where it really isn't providing policy to deal with its economic issues," said Kenichi Hirano, operating officer at Tachibana Securities.
OIL: Crude rises second day on short-covering
SINGAPORE, Aug 26 (Reuters) - U.S. crude rose for a second day on Thursday as bargain-hunting and short-covering in equities spread to the oil market, where investors ignored reports showing slower U.S. economic activity and rising record-high inventories to take advantage of prices near 11-week lows.
Tropical Depression Seven in the far eastern Atlantic Ocean strengthened into Tropical Storm Earl late Wednesday, the U.S. National Hurricane Center said in its latest advisory.
COMMODITY MARKETS: Weak data hits markets; oil, copper bounce late
NEW YORK, Aug 25 (Reuters) - Another round of gloomy U.S. economic data sank most commodity markets on Wednesday as investors fretted about the demand outlook for raw materials, although oil and copper repaired steep early losses by the end, rebounding with Wall Street.
"They (data) are obviously lousy. It's very disappointing. The strength of second quarter GDP was business spending. It looks like businesses are pulling back from this commitment in a very big way in July. It's an indication of how sentiment is deteriorating," said Christopher Low, chief economist ay FTN Financial in New York.
GLOBAL MARKETS: US stocks rise on bargain hunting; yen eases
NEW YORK, Aug 25 (Reuters) - U.S. stocks staged a comeback on bargain hunting after suffering steep early losses on disappointing economic data on Wednesday, while the yen pulled back from a 15-year high on mounting speculation Japanese authorities may intervene to stem the currency's rise.
"Overall, this is still a very careful market," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey. "Until we see a package of decidedly positive data, this market is going to be vulnerable."
Aug. 25 (Bloomberg) -- Nouriel Roubini, the New York University economist who predicted the global financial crisis, said U.S. growth will be “well below” 1 percent in the third quarter and put the odds of a renewed recession at 40 percent. Roubini, chairman of Roubini Global Economics LLC, said his forecast assumes the government will lower its estimate for growth in the second quarter to an annual rate of 1.2 percent “at best.” “All the growth tailwinds of the first half of the year become headwinds in the second half,” he said in an e-mail message, including the government’s $814-billion stimulus plan, hiring for the census, and incentives such the cash-for-clunkers program and tax credits for first-time home buyers.
US home sales at 15-year lows, stoke recovery fears
WASHINGTON, Aug 24 (Reuters) - Sales of previously owned U.S. homes took a record plunge in July to their slowest pace in 15 years, underlining the housing market's struggle to find its footing without government aid. Tuesday's report from the National Association of Realtors, which was much worse than market expectations, was the latest data that indicated economic activity continued to slacken into the third quarter.
FOREX-Yen dips, rally pauses on intervention jitters
LONDON, Aug 25 (Reuters) - The yen pulled back from 15-year highs against the dollar and a nine-year peak versus the euro on Wednesday on speculation Japanese authorities may take action to stem the currency's rise. "The yen has come quite far quite quickly ... so we're seeing some consolidation," said Daragh Maher, currency strategist at Credit Agricole CIB.
Yen dips from 15-yr high; stocks off for 5th day
LONDON, Aug 25 (Reuters) - World stocks fell for a fifth day as worries about a double dip recession persisted, while the yen eased from a 15-year high on speculation that Tokyo was considering intervening to weaken its currency.
"The Ireland downgrade was not too much of a surprise but it is still weighing on sentiment," said Joshua Raymond, market strategist at City Index in London.
TOKYO, Aug 26 (Reuters) - Asian stocks rose as investors hunted for bargains among recently beaten-down shares, while the yen pulled further away from 15-year highs as investors wondered whether Japanese officials would take fresh steps to curb the currency's strength and spur economic growth.
"There are increasing signs of a slowing global economy, and on top of that you have Japan's situation where it really isn't providing policy to deal with its economic issues," said Kenichi Hirano, operating officer at Tachibana Securities.
OIL: Crude rises second day on short-covering
SINGAPORE, Aug 26 (Reuters) - U.S. crude rose for a second day on Thursday as bargain-hunting and short-covering in equities spread to the oil market, where investors ignored reports showing slower U.S. economic activity and rising record-high inventories to take advantage of prices near 11-week lows.
Tropical Depression Seven in the far eastern Atlantic Ocean strengthened into Tropical Storm Earl late Wednesday, the U.S. National Hurricane Center said in its latest advisory.
COMMODITY MARKETS: Weak data hits markets; oil, copper bounce late
NEW YORK, Aug 25 (Reuters) - Another round of gloomy U.S. economic data sank most commodity markets on Wednesday as investors fretted about the demand outlook for raw materials, although oil and copper repaired steep early losses by the end, rebounding with Wall Street.
"They (data) are obviously lousy. It's very disappointing. The strength of second quarter GDP was business spending. It looks like businesses are pulling back from this commitment in a very big way in July. It's an indication of how sentiment is deteriorating," said Christopher Low, chief economist ay FTN Financial in New York.
GLOBAL MARKETS: US stocks rise on bargain hunting; yen eases
NEW YORK, Aug 25 (Reuters) - U.S. stocks staged a comeback on bargain hunting after suffering steep early losses on disappointing economic data on Wednesday, while the yen pulled back from a 15-year high on mounting speculation Japanese authorities may intervene to stem the currency's rise.
"Overall, this is still a very careful market," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey. "Until we see a package of decidedly positive data, this market is going to be vulnerable."
Aug. 25 (Bloomberg) -- Nouriel Roubini, the New York University economist who predicted the global financial crisis, said U.S. growth will be “well below” 1 percent in the third quarter and put the odds of a renewed recession at 40 percent. Roubini, chairman of Roubini Global Economics LLC, said his forecast assumes the government will lower its estimate for growth in the second quarter to an annual rate of 1.2 percent “at best.” “All the growth tailwinds of the first half of the year become headwinds in the second half,” he said in an e-mail message, including the government’s $814-billion stimulus plan, hiring for the census, and incentives such the cash-for-clunkers program and tax credits for first-time home buyers.
US home sales at 15-year lows, stoke recovery fears
WASHINGTON, Aug 24 (Reuters) - Sales of previously owned U.S. homes took a record plunge in July to their slowest pace in 15 years, underlining the housing market's struggle to find its footing without government aid. Tuesday's report from the National Association of Realtors, which was much worse than market expectations, was the latest data that indicated economic activity continued to slacken into the third quarter.
FOREX-Yen dips, rally pauses on intervention jitters
LONDON, Aug 25 (Reuters) - The yen pulled back from 15-year highs against the dollar and a nine-year peak versus the euro on Wednesday on speculation Japanese authorities may take action to stem the currency's rise. "The yen has come quite far quite quickly ... so we're seeing some consolidation," said Daragh Maher, currency strategist at Credit Agricole CIB.
Yen dips from 15-yr high; stocks off for 5th day
LONDON, Aug 25 (Reuters) - World stocks fell for a fifth day as worries about a double dip recession persisted, while the yen eased from a 15-year high on speculation that Tokyo was considering intervening to weaken its currency.
"The Ireland downgrade was not too much of a surprise but it is still weighing on sentiment," said Joshua Raymond, market strategist at City Index in London.
20100826 0947 Soy Oil & Palm Oil Related News.
Soy product futures ended mixed, with meal/oil spreading boosting soymeal futures while weighing on soyoil futures. December soyoil settled 0.34 cents, or 0.8%, lower at 39.72 cents per pound. Soymeal ended $2.30, or 0.8%, higher at $292.20 per short ton.(Source: CME)
IOI Chairman: Malaysia 2010 CPO Output May Fall Short Of 17.8M Tons(Source: CME)
Crude palm oil production in Malaysia may fall short of the national target of 17.8 million metric tons in 2010 as the La Nina weather event may slow transportation and disrupt harvesting cycles, Lee Shin Cheng, chairman at IOI Corp., Malaysia's second-largest listed palm oil producer by volume, said Wednesday. Malaysia's commodities ministry in July lowered its palm production forecast to 17.8 million tons from 18.1 million tons, as adverse weather conditions hurt yields. "Production will be adversely affected if the heavier-than-expected rainfall sets in during the fourth quarter," IOI's Lee told Dow Jones Newswires. He didn't give a price forecast. Palm oil usually reaches peak production during the September-November period and coincides with the monsoon season in the country. La Nina episodes are usually associated with above-normal rainfall. Though the presence of a La Nina hampers harvesting activity, heavy rainfall augurs well for future palm yields. "It may be too early to predict but with good rainfall in 2010, production in 2011 is likely to recover," Lee said.
July US Census Soy Crush Seen At 128.5M Bushels (Source: CME)
The U.S. Census Bureau is expected to estimate the July soybean crush at 128.5 million bushels, a modest decline from the prior month, owing to tight availability of supplies for crushing, according to a survey of industry analysts. The Census Bureau's crush report is scheduled for release Thursday at 8 a.m. EDT. In an Aug. 16 report, the National Oilseed Processors Association said the July crush was 124.181 million bushels, down 2.06 million bushels from June. The NOPA report includes figures only from member processors. The daily soybean crush rate slowed in July because seasonal down time in the industry and tight soybean supplies for crushing translated into a smaller month-over-month crush pace, analysts said. Supplies of soybeans from the last harvest dwindled because of strong demand and a lack of selling by farmers. July soymeal stocks are seen increasing to 350,800 short tons in the Census Bureau estimate, up from the 334,921 tons reported for June.
The slowdown in the U.S. soymeal export program is seen building supplies, industry participants said. Soyoil stocks are seen declining to 3.528 billion pounds in the report, down from 3.555 billion the previous month. In the NOPA report, soyoil stocks saw a 9.886 million pound decrease in stocks. A lower processing pace in July and a pickup in soyoil exports led to a drawdown of soyoil supplies, said Dan Basse, president of AgResource Co. in Chicago.
CHICAGO, Aug 24 (Reuters) - Soyoil prices have lagged those of the other major global edible oils for much of 2010, frustrating managed money traders who are currently sitting on their largest long position in that commodity for more than three years. But an improving technical pattern coupled with the fact that soyoil prices have recently established their widest discount to palm oil in more than a year suggests that soy oil futures may be primed for a period of strength in the weeks ahead.
Weak demand drags palm oil to 4-week lows
KUALA LUMPUR, Aug 25 (Reuters) - Malaysian crude palm oil futures dropped to one-month lows as slower overseas demand and concerns over the pace of global economic recovery weakened sentiment.
"Equities are going through a patch of uncertainty and the market is depressed at this level," said a trader with a Kuala Lumpur-based foreign brokerage.
Canadian canola crop outlook improving- Oil World
HAMBURG, Aug 24 (Reuters) - The outlook for Canada's canola (rapeseed) crop is improving but the harvest will still be down on the year, Hamburg-based oilseeds analysts Oil World said on Tuesday. Oil World has raised its forecast of Canada's 2010/11 rapeseed crop for harvesting in summer 2010 to 10.5 million tonnes, up by 0.5 million tonnes from its July estimate but still down from the 11.8 million
US corn, soybean ratings seen down on lack of rain
CHICAGO, Aug 23 (Reuters) - A lack of rain in some areas of the U.S. Midwest and the advancing maturity of the corn and soybean crops should result in a slight drop in weekly crop condition ratings, according to a Reuters poll of 10 analysts. On average, the analysts expected the U.S. Agriculture Department's weekly Crop Progress Report to show 68 percent of the corn crop rated in good to excellent condition, down 1 point from 69 percent last week.
IOI Chairman: Malaysia 2010 CPO Output May Fall Short Of 17.8M Tons(Source: CME)
Crude palm oil production in Malaysia may fall short of the national target of 17.8 million metric tons in 2010 as the La Nina weather event may slow transportation and disrupt harvesting cycles, Lee Shin Cheng, chairman at IOI Corp., Malaysia's second-largest listed palm oil producer by volume, said Wednesday. Malaysia's commodities ministry in July lowered its palm production forecast to 17.8 million tons from 18.1 million tons, as adverse weather conditions hurt yields. "Production will be adversely affected if the heavier-than-expected rainfall sets in during the fourth quarter," IOI's Lee told Dow Jones Newswires. He didn't give a price forecast. Palm oil usually reaches peak production during the September-November period and coincides with the monsoon season in the country. La Nina episodes are usually associated with above-normal rainfall. Though the presence of a La Nina hampers harvesting activity, heavy rainfall augurs well for future palm yields. "It may be too early to predict but with good rainfall in 2010, production in 2011 is likely to recover," Lee said.
July US Census Soy Crush Seen At 128.5M Bushels (Source: CME)
The U.S. Census Bureau is expected to estimate the July soybean crush at 128.5 million bushels, a modest decline from the prior month, owing to tight availability of supplies for crushing, according to a survey of industry analysts. The Census Bureau's crush report is scheduled for release Thursday at 8 a.m. EDT. In an Aug. 16 report, the National Oilseed Processors Association said the July crush was 124.181 million bushels, down 2.06 million bushels from June. The NOPA report includes figures only from member processors. The daily soybean crush rate slowed in July because seasonal down time in the industry and tight soybean supplies for crushing translated into a smaller month-over-month crush pace, analysts said. Supplies of soybeans from the last harvest dwindled because of strong demand and a lack of selling by farmers. July soymeal stocks are seen increasing to 350,800 short tons in the Census Bureau estimate, up from the 334,921 tons reported for June.
The slowdown in the U.S. soymeal export program is seen building supplies, industry participants said. Soyoil stocks are seen declining to 3.528 billion pounds in the report, down from 3.555 billion the previous month. In the NOPA report, soyoil stocks saw a 9.886 million pound decrease in stocks. A lower processing pace in July and a pickup in soyoil exports led to a drawdown of soyoil supplies, said Dan Basse, president of AgResource Co. in Chicago.
CHICAGO, Aug 24 (Reuters) - Soyoil prices have lagged those of the other major global edible oils for much of 2010, frustrating managed money traders who are currently sitting on their largest long position in that commodity for more than three years. But an improving technical pattern coupled with the fact that soyoil prices have recently established their widest discount to palm oil in more than a year suggests that soy oil futures may be primed for a period of strength in the weeks ahead.
Weak demand drags palm oil to 4-week lows
KUALA LUMPUR, Aug 25 (Reuters) - Malaysian crude palm oil futures dropped to one-month lows as slower overseas demand and concerns over the pace of global economic recovery weakened sentiment.
"Equities are going through a patch of uncertainty and the market is depressed at this level," said a trader with a Kuala Lumpur-based foreign brokerage.
Canadian canola crop outlook improving- Oil World
HAMBURG, Aug 24 (Reuters) - The outlook for Canada's canola (rapeseed) crop is improving but the harvest will still be down on the year, Hamburg-based oilseeds analysts Oil World said on Tuesday. Oil World has raised its forecast of Canada's 2010/11 rapeseed crop for harvesting in summer 2010 to 10.5 million tonnes, up by 0.5 million tonnes from its July estimate but still down from the 11.8 million
US corn, soybean ratings seen down on lack of rain
CHICAGO, Aug 23 (Reuters) - A lack of rain in some areas of the U.S. Midwest and the advancing maturity of the corn and soybean crops should result in a slight drop in weekly crop condition ratings, according to a Reuters poll of 10 analysts. On average, the analysts expected the U.S. Agriculture Department's weekly Crop Progress Report to show 68 percent of the corn crop rated in good to excellent condition, down 1 point from 69 percent last week.
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