U.S. soy product futures finished mixed, with soyoil rising slightly on solid demand. Soyoil export sales are expected to remain firm after the USDA last week announced a string of deals in its daily reporting system. China and Peru were among the buyers last week. Weekly U.S. soyoil export sales, issued Thursday, were 138,200 tons, compared to 12,300 tons the previous week and 16,000 tons the week before that. "It seems like the export news on that bean oil continues to be pretty stout," a broker says. Commodity funds bought an estimated 1,000 soyoil contracts at CBOT, a light amount. CBOT December soyoil ended up 0.05 cent at 41.81 cents per pound, and CBOT December soymeal slipped 20 cents to $293.50 per short ton.(Source: CME)
SURVEY: NOPA Soy Crush Expected To Drop To 120 Million Bushels(Source: CME)
A monthly report from the National Oilseed Processors Association is expected to confirm that fewer soybeans were crushed in August than July due to a seasonal slowdown in operations and a lack of available supplies. The NOPA report, due out at 8:30 a.m. EDT Tuesday, is projected to say processors crushed 120 million bushels of soybeans in August, down from 124.181 million bushels in July, according to a survey of analysts by Dow Jones Newswires. The range of analysts' estimates was 116.3 million to 124 million. The NOPA report only includes figures from member processors. "There's just a seasonal fall in the crush," said Dan Basse, president of AgResource Company, a Chicago-based agricultural research firm. "I think the tightness of old-crop beans just exacerbated that."
Supplies of soybeans from the last harvest, or the "old crop," are tight because of strong demand and a lack of selling by farmers. Harvest of the next soybean crop, or the "new crop," will pick up speed this month and likely finish next month. Most analysts projected the NOPA report will show a decline in soyoil stocks from last month. The average of analysts' estimates was 2.87 billion pounds, compared to July soyoil stocks of 3.026 billion. Estimates ranged from 2.75 billion pounds to 3.123 billion pounds. Soyoil stocks should decline from last month because exports have been strong, said Anne Frick, senior oilseed analyst for Prudential Bache. Reduced crushings also indicate soyoil stocks will drop, another analyst said. However, Basse projected a modest increase in stocks because the struggling biodiesel industry, hurt by the expiration of a tax credit promoting biodiesel production, is not using as much soyoil as it used to.
Malaysia End-August Palm Oil Stocks Likely 1.65-1.7 Million Tons.(Source: CME)
Malaysia's Aug. 31 palm oil inventory levels likely reached 1.65 million to 1.70 million metric tons, their highest level since March, due to weak export demand and rising palm oil production, market participants said Monday. Stocks likely rose more sharply than in preceding months due to increased palm imports from Indonesia, a Singapore-based trading executive said. He estimated that palm oil imports in August were around 100,000 tons compared with usual levels of around 20,000 to 25,000 tons as Indonesian traders rushed to move cargoes before Indonesia raised its crude palm oil export tax to 6% from 3% on Sept. 1. Palm oil output likely rose 8% to 10% from 1.52 million tons the previous month, as favorable weather conditions aided harvesting, a company executive at a Malaysia-based major plantation company said. End-July inventory levels were 1.41 million tons, data from the government-linked Malaysian Palm Oil Board showed.
"September production data may not rise significantly as the long Eid holidays have disrupted or slowed down harvesting rounds at the estates," the executive said. MPOB is due to issue palm oil production, stock and export figures Wednesday. Benchmark palm oil prices on the Bursa Malaysia Derivatives have risen 5.6% since the start of this month due to concerns that an Islamic holiday would slow harvesting.
China Ministry: September Soybean Imports Likely 4.73 Million Tons(Source: CME)
China is likely to import about 4.73 million metric tons of soybeans this month, the Ministry of Commerce said Monday. The estimate is slightly lower than imports in August, when 4.76 million tons of soybeans were imported, according to data last week from the General Administration of Customs. Such volumes are still historically high. The forecast for imports this month represents a 72% rise from a year earlier. The estimate, published on the ministry's website, is based on reports from importers during the Aug. 16-Aug. 31 period. The regular forecast is usually lower than the actual import figure as it doesn't include all cargoes. The ministry issues the estimates twice a month.
China data, crude lift palm to one-mth highs
KUALA LUMPUR, Sept 13 (Reuters) - Malaysian crude palm oil futures hit one-month highs after a long weekend holiday, on encouraging economic data from China and firmer crude oil, although prospects of a bumper U.S. soy crop weighed on prices.
"People missed the opportunity to hedge enough positions because nobody expected that crude (oil) could go this high within two days," said a trader with a foreign commodities broker.
Tuesday, September 14, 2010
Monday, September 13, 2010
20100913 1838 FCPO EOD Daily Chart Study.
Bollinger band reading : side way range bound little upside biased market.
MACD Histrogram : rising, buyer still in control.
Support : 2670, 250, 2620 level.
Resistant : 2700, 2720, 2750 level.
Comment :
Higher soy oil and crude oil futures prices due to a weaker US Dollar lead FCPO to opened and traded higher in moderate improved volume transaction. Daily chart formed a doji up bar candle tested support and resistant level with the reading suggesting a side way range bound little upside biased market testing higher resistant 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.
20100913 1826 FKLI EOD Daily Chart Study.
Bollinger band reading : upside biased.
MACD Histrogram : turned rising again, buyer defended well.
Support : 1458, 1445, 1425 level.
Resistant : 1470, 1500, 1530 level.
Comment :
FKLI rallied up recorded huge gained today in improved volume transaction as regional market also having positive development spurted buyer to stayed in the market for a longer time frame. Daily chart formed a wide range up bar candle touching and closed near the upper Bollinger band level. Outlook wise, market resume a upside biased reading after nearly a week of correction range bound market.
When to buy : buy at support/weakness/break up with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20100913 1448 Global Market News.
China: August new lending rebounds, exceeds forecasts
New lending in China rebounded in August and expansion of the money supply unexpectedly accelerated, reflecting strong demand for credit. Banks extended RMB545.2bn (USD80bn) of new local-currency loans last month compared with RMB532.8bn in July, the People’s Bank of China said on its website. That was the first acceleration in four months and compared with the median forecast of RMB500bn. M2, the broadest measure of money supply, grew 19.2% from a year earlier, the first pickup in nine months. (Bloomberg)
China: Output tops forecast as ‘robust’ demand aids world growth
China’s industrial output rose at a faster pace in August than analysts estimated, signaling the world’s thirdbiggest economy is maintaining momentum as growth moderates. Production gained 13.9% from a year earlier, more than the 13% median estimate of 29 economists, a statistics bureau report showed. Consumer prices jumped 3.5%, the most in 22 months, as food costs climbed. Retail sales increased 18.4%. (Bloomberg)
UK: Inflation probably slowed to 3% in August, economists say
UK inflation probably slowed to the government’s 3% upper limit in August for the first time in six months, economists say. Consumer prices increased 3% from a year earlier, compared with 3.1% in July, according to the median forecast of 30 economists in a Bloomberg News survey. The Office for National Statistics will publish the data in London on 14 Sept. (Bloomberg)
US: Wholesale inventories rose more than forecast
Inventories at US wholesalers rose in July by the most in two years as a rebound in demand prompted companies to add to stockpiles. The 1.3% increase in the value of inventories was three times the median estimate in a Bloomberg News survey and followed a 0.3% gain the prior month, Commerce Department figures showed. Sales at distributors climbed 0.6%, the most since April, after falling 0.5%. (Bloomberg)
US: Obama names Goolsbee to lead White House economy panel
President Barack Obama said he’s appointing Austan Goolsbee to lead the Council of Economic Advisers, calling him “one of the finest economists in the country.” Goolsbee has been a member of Obama’s team of advisers since the presidential campaign. Goolsbee replaces Christina Romer, who is leaving her post to return to teaching at the University of California at Berkeley. (Bloomberg)
US: Retail sales probably climbed in August
Retail sales in the US probably increased in August for a second month as merchants lured shoppers with discounts, a sign the economy will keep expanding, economists said before reports this week. A projected 0.3% gain in sales is based on the median estimate of 63 economists surveyed before the Commerce Department’s 14 Sept report and follows a 0.4% rise in July. (Bloomberg)
New lending in China rebounded in August and expansion of the money supply unexpectedly accelerated, reflecting strong demand for credit. Banks extended RMB545.2bn (USD80bn) of new local-currency loans last month compared with RMB532.8bn in July, the People’s Bank of China said on its website. That was the first acceleration in four months and compared with the median forecast of RMB500bn. M2, the broadest measure of money supply, grew 19.2% from a year earlier, the first pickup in nine months. (Bloomberg)
China: Output tops forecast as ‘robust’ demand aids world growth
China’s industrial output rose at a faster pace in August than analysts estimated, signaling the world’s thirdbiggest economy is maintaining momentum as growth moderates. Production gained 13.9% from a year earlier, more than the 13% median estimate of 29 economists, a statistics bureau report showed. Consumer prices jumped 3.5%, the most in 22 months, as food costs climbed. Retail sales increased 18.4%. (Bloomberg)
UK: Inflation probably slowed to 3% in August, economists say
UK inflation probably slowed to the government’s 3% upper limit in August for the first time in six months, economists say. Consumer prices increased 3% from a year earlier, compared with 3.1% in July, according to the median forecast of 30 economists in a Bloomberg News survey. The Office for National Statistics will publish the data in London on 14 Sept. (Bloomberg)
US: Wholesale inventories rose more than forecast
Inventories at US wholesalers rose in July by the most in two years as a rebound in demand prompted companies to add to stockpiles. The 1.3% increase in the value of inventories was three times the median estimate in a Bloomberg News survey and followed a 0.3% gain the prior month, Commerce Department figures showed. Sales at distributors climbed 0.6%, the most since April, after falling 0.5%. (Bloomberg)
US: Obama names Goolsbee to lead White House economy panel
President Barack Obama said he’s appointing Austan Goolsbee to lead the Council of Economic Advisers, calling him “one of the finest economists in the country.” Goolsbee has been a member of Obama’s team of advisers since the presidential campaign. Goolsbee replaces Christina Romer, who is leaving her post to return to teaching at the University of California at Berkeley. (Bloomberg)
US: Retail sales probably climbed in August
Retail sales in the US probably increased in August for a second month as merchants lured shoppers with discounts, a sign the economy will keep expanding, economists said before reports this week. A projected 0.3% gain in sales is based on the median estimate of 63 economists surveyed before the Commerce Department’s 14 Sept report and follows a 0.4% rise in July. (Bloomberg)
20100913 1447 Malaysia Corporate News.
Petronas sells 5% of GLNG project to Total
Petroliam Nasional Bhd (Petronas) has entered into an agreement to sell a 5% stake in the Gladstone Liquefied Natural Gas (GLNG) project in Australia to Total, the Australian Associated Press (AAP) reported. Total is the world’s fourth largest listed natural gas producer. At the same time, Santos Ltd, Australia’s third-largest oil and gas producer, stated it would sell a 15% stake in the GLNG project to Total for AUD650m. Upon completion of the transactions, Santos will retain a 45% ownership, Petronas 35% and Total 20%. Santos said the GLNG transaction was the first major investment by Total in an LNG project using unconventional gas anywhere in the world. (StarBiz)
Tanjong gaming arm for sale?
Usaha Tegas Sdn Bhd (UT) is finalising plans to sell the gaming business of Tanjong plc, post the latter’s privatisation, according to investment banking sources. “It is only a question of time. UT is now busy finalising the funding of Tanjong’s privatisation. But once that is settled, gaming will be hived off as the focus is on the power business,” said one banker familiar with the plans. To recap, in late July, a consortium comprising tycoon T. Ananda Krishnan’s private vehicle UT and unnamed parties acting in concert, which together own 47% of Tanjong, made an offer to buy out the firm at RM21.80 a share in cash. The takeover has yet to be concluded, with Tanjong recently extending the closing date for acceptances of the offer to 27 Sept. Meanwhile, it had been reported that around 70% of the acquisition price tag of RM4.7bn to privatise Tanjong would come from the debt market, with a ringgit financing been given priority over USD, although a portion of the deal was still expected to be funded offshore. Bankers also pointed out that after the hiving off of Tanjong’s gaming business, Ananda was likely to relist Powertek Bhd, the power business of the Tanjong group. However, contrary to speculation, Ananda was unlikely to list his oil and gas support services company, Bumi Armada Bhd, anytime soon, sources said. (StarBiz)
Carrefour cuts rivals from bidding for its stores
French retail giant Carrefour has taken rivals Tesco and Japan's Aeon out of the bidding for its Southeast Asian stores, the Wall Street Journal reported yesterday. Carrefour, the world's second-largest retailer after Wal-Mart, hopes to raise USD1bn (RM3bn) from the sale of its assets in Singapore, Thailand and Malaysia, the Journal said citing "people familiar with the matter". Several companies have gone through to the next round of bidding, set for November, including France's Casino Guichard-Perrachon and Thai-owned firms Big C Supercenter PC, Central Group, Berli Jucker and PTT, according to the report. Carrefour chief executive officer Lars Olofsson said in May that he would consider offers for its assets in markets where it was not first or second, the Journal said, raising the prospect of an auction of its stores in the growing region. It cut several companies from the bidding process because they had put in low prices, the Journal reported. (BT)
Loh & Loh joint venture wins RM828m TNB project
Loh & Loh Corp Bhd said a 60:40 joint venture between its subsidiary Loh & Loh Constructions SB and Sinohydro Corp Ltd has received a letter of acceptance from Tenaga Nasional Bhd for the Hulu Terengganu Hydroelectric Project Lot CW2 – Main Civil and Associated Works worth RM828.3m. “The commencement date of the project shall be within 130 days after receipt of the letter of acceptance by the contractor. The period for completion of the project is 1,674 days from the commencement date,” it said in a filing with Bursa Malaysia yesterday. Sinohydro is a well-known Chinese hydropower construction group with operations in 50 countries. It is a state-owned enterprise. (StarBiz)
Splash: Downgrade does not mean default on bonds
With Selangor water players having their debt issuance downgraded by rating agencies recently, Syarikat Pengeluar Air Sungai Selangor SB (Splash) has clarified that the downgrade does not constitute a default on the company’s bonds. The water concessionaire also stressed that the bonds were non recourse to shareholders and maintained the company does not need any new borrowings for its operations. A Splash spokesman said in a statement last Thursday that the downgrade had “severe negative impact” on bondholders and that the damage to investor sentiment could be irreparable. (Financial Daily)
Mah Sing proposes to issue RM325m bonds
Mah Sing Group Bhd has proposed an issuance of up to RM325m nominal value of seven-year redeemable convertible secured bonds and increase in the authorised share capital of the company to RM1bn comprising 2bn shares. In a filing with Bursa Malaysia, Mah Sing said the issue price of the bonds would be determined later and the bonds would be issued on a “bought deal” basis. “The proposed bonds issue will raise gross proceeds of up to RM325m.The gross proceeds will be utilised for land acquisitions, working capital purposes as well as to defray estimated expenses arising from the bonds issue,” it said. (StarBiz)
SP Setia unit buys land in Johor for RM169m
In announcement on Thursday, SP Setia announced that it would be acquiring 259.1 acres of freehold land within the Tebrau Corridor in South Johor, Malaysia, from a private developer called Kelana Ventures SB. The acquisition is expected to be completed in late 2011. (Bursa)
Petroliam Nasional Bhd (Petronas) has entered into an agreement to sell a 5% stake in the Gladstone Liquefied Natural Gas (GLNG) project in Australia to Total, the Australian Associated Press (AAP) reported. Total is the world’s fourth largest listed natural gas producer. At the same time, Santos Ltd, Australia’s third-largest oil and gas producer, stated it would sell a 15% stake in the GLNG project to Total for AUD650m. Upon completion of the transactions, Santos will retain a 45% ownership, Petronas 35% and Total 20%. Santos said the GLNG transaction was the first major investment by Total in an LNG project using unconventional gas anywhere in the world. (StarBiz)
Tanjong gaming arm for sale?
Usaha Tegas Sdn Bhd (UT) is finalising plans to sell the gaming business of Tanjong plc, post the latter’s privatisation, according to investment banking sources. “It is only a question of time. UT is now busy finalising the funding of Tanjong’s privatisation. But once that is settled, gaming will be hived off as the focus is on the power business,” said one banker familiar with the plans. To recap, in late July, a consortium comprising tycoon T. Ananda Krishnan’s private vehicle UT and unnamed parties acting in concert, which together own 47% of Tanjong, made an offer to buy out the firm at RM21.80 a share in cash. The takeover has yet to be concluded, with Tanjong recently extending the closing date for acceptances of the offer to 27 Sept. Meanwhile, it had been reported that around 70% of the acquisition price tag of RM4.7bn to privatise Tanjong would come from the debt market, with a ringgit financing been given priority over USD, although a portion of the deal was still expected to be funded offshore. Bankers also pointed out that after the hiving off of Tanjong’s gaming business, Ananda was likely to relist Powertek Bhd, the power business of the Tanjong group. However, contrary to speculation, Ananda was unlikely to list his oil and gas support services company, Bumi Armada Bhd, anytime soon, sources said. (StarBiz)
Carrefour cuts rivals from bidding for its stores
French retail giant Carrefour has taken rivals Tesco and Japan's Aeon out of the bidding for its Southeast Asian stores, the Wall Street Journal reported yesterday. Carrefour, the world's second-largest retailer after Wal-Mart, hopes to raise USD1bn (RM3bn) from the sale of its assets in Singapore, Thailand and Malaysia, the Journal said citing "people familiar with the matter". Several companies have gone through to the next round of bidding, set for November, including France's Casino Guichard-Perrachon and Thai-owned firms Big C Supercenter PC, Central Group, Berli Jucker and PTT, according to the report. Carrefour chief executive officer Lars Olofsson said in May that he would consider offers for its assets in markets where it was not first or second, the Journal said, raising the prospect of an auction of its stores in the growing region. It cut several companies from the bidding process because they had put in low prices, the Journal reported. (BT)
Loh & Loh joint venture wins RM828m TNB project
Loh & Loh Corp Bhd said a 60:40 joint venture between its subsidiary Loh & Loh Constructions SB and Sinohydro Corp Ltd has received a letter of acceptance from Tenaga Nasional Bhd for the Hulu Terengganu Hydroelectric Project Lot CW2 – Main Civil and Associated Works worth RM828.3m. “The commencement date of the project shall be within 130 days after receipt of the letter of acceptance by the contractor. The period for completion of the project is 1,674 days from the commencement date,” it said in a filing with Bursa Malaysia yesterday. Sinohydro is a well-known Chinese hydropower construction group with operations in 50 countries. It is a state-owned enterprise. (StarBiz)
Splash: Downgrade does not mean default on bonds
With Selangor water players having their debt issuance downgraded by rating agencies recently, Syarikat Pengeluar Air Sungai Selangor SB (Splash) has clarified that the downgrade does not constitute a default on the company’s bonds. The water concessionaire also stressed that the bonds were non recourse to shareholders and maintained the company does not need any new borrowings for its operations. A Splash spokesman said in a statement last Thursday that the downgrade had “severe negative impact” on bondholders and that the damage to investor sentiment could be irreparable. (Financial Daily)
Mah Sing proposes to issue RM325m bonds
Mah Sing Group Bhd has proposed an issuance of up to RM325m nominal value of seven-year redeemable convertible secured bonds and increase in the authorised share capital of the company to RM1bn comprising 2bn shares. In a filing with Bursa Malaysia, Mah Sing said the issue price of the bonds would be determined later and the bonds would be issued on a “bought deal” basis. “The proposed bonds issue will raise gross proceeds of up to RM325m.The gross proceeds will be utilised for land acquisitions, working capital purposes as well as to defray estimated expenses arising from the bonds issue,” it said. (StarBiz)
SP Setia unit buys land in Johor for RM169m
In announcement on Thursday, SP Setia announced that it would be acquiring 259.1 acres of freehold land within the Tebrau Corridor in South Johor, Malaysia, from a private developer called Kelana Ventures SB. The acquisition is expected to be completed in late 2011. (Bursa)
20100913 1213 Global Market News.
GLOBAL MARKETS: U.S. data spurs risk appetite, hurts bonds
NEW YORK, Sept 9 (Reuters) - Stocks rose and bonds fell on Thursday after stronger-than-expected U.S. data on jobless benefits and trade, raising hopes the tepid economic recovery would accelerate.
"The economic numbers in the last week or so have been able to beat expectations, so that's providing some confidence that the third quarter will finish firm."
U.S. data shows economic recovery still on track
WASHINGTON, Sept 9 (Reuters) - New U.S. claims for unemployment benefits fell more than expected last week to a two-month low, while the trade deficit narrowed sharply in July, hopeful signs for the stuttering economic recovery.
The data on Thursday helped to calm fears of a sharp slowdown in growth and implied the economy could start working its way out of a soft patch.
China's imports leap, cutting trade surplus
BEIJING, Sept 10 (Reuters) - China's imports leapt in August, boding well for a strengthening of domestic demand in an economy that has become a major driver of global growth.
The unexpectedly big increase in imports also dented China's politically contentious trade surplus ahead of U.S. Congressional hearings next week on whether to punish Beijing for what many in Washington see as an unfairly undervalued yuan.
Stocks hurt by bank worries after Deutsche report
LONDON, Sept 10 (Reuters) - Global stocks were pressured by concerns over banks ahead of a meeting to finalise European capital rules at the weekend, while brighter U.S. and Chinese data hurt the safe-haven appeal of the Swiss franc and yen.
"The bulls and bears have knocked each other senseless and are lying in the corner. The bulls are waiting for employment growth and the bears are waiting for European problems to blow up," John Haynes, head of research at Rensburg Sheppards, said.
NEW YORK, Sept 9 (Reuters) - Stocks rose and bonds fell on Thursday after stronger-than-expected U.S. data on jobless benefits and trade, raising hopes the tepid economic recovery would accelerate.
"The economic numbers in the last week or so have been able to beat expectations, so that's providing some confidence that the third quarter will finish firm."
U.S. data shows economic recovery still on track
WASHINGTON, Sept 9 (Reuters) - New U.S. claims for unemployment benefits fell more than expected last week to a two-month low, while the trade deficit narrowed sharply in July, hopeful signs for the stuttering economic recovery.
The data on Thursday helped to calm fears of a sharp slowdown in growth and implied the economy could start working its way out of a soft patch.
China's imports leap, cutting trade surplus
BEIJING, Sept 10 (Reuters) - China's imports leapt in August, boding well for a strengthening of domestic demand in an economy that has become a major driver of global growth.
The unexpectedly big increase in imports also dented China's politically contentious trade surplus ahead of U.S. Congressional hearings next week on whether to punish Beijing for what many in Washington see as an unfairly undervalued yuan.
Stocks hurt by bank worries after Deutsche report
LONDON, Sept 10 (Reuters) - Global stocks were pressured by concerns over banks ahead of a meeting to finalise European capital rules at the weekend, while brighter U.S. and Chinese data hurt the safe-haven appeal of the Swiss franc and yen.
"The bulls and bears have knocked each other senseless and are lying in the corner. The bulls are waiting for employment growth and the bears are waiting for European problems to blow up," John Haynes, head of research at Rensburg Sheppards, said.
20100913 1212 Soy Oil & Palm Oil Related News.
ITS: Export up 1.1% to 396,684 tonnes.SGS: Export down 3% to 383,456 tonnes.
Soy product futures ended mixed, with adjustments in the meal/oil spread relationship featured. Soyoil futures managed to climb despite weakness in the rest of the complex, underpinned by a strong U.S. export program and spillover support from firm crude-oil futures, analysts said. The unwinding of meal oil spreads and weakness in soybeans weighed on soymeal futures. December soyoil settled 0.17 cents, or 0.4%, higher at 41.76 cents per pound. December soymeal ended $8.30, or 2.7%, lower at $293.70 per short ton. (Source: CME)
China August Edible Oil Imports 530,000 Tons; Down 33% On Year (Source: CME)
China's edible oil imports in August fell 33% from the same month last year to 530,000 metric tons, the General Administration of Customs said Friday. August's figure is down 14.5% compared with July. From January to August, edible oil imports fell 16.3% compared with the same period last year to 4.32 million tons.
China Aug soy imports down 3.6 pct, more falls seen
BEIJING, Sept 10 (Reuters) - China's soybean imports fell 3.6 percent on the month in August to 4.77 million tonnes, still the fourth largest monthly import ever, with further declines seen.
Crushers have booked less for coming months after massive imports -- a record 6.2 million tonnes in June followed by 4.95 million tonnes in July -- squeezed margins.
"Some trading houses have been losing money and reduced purchase volumes," said one trading executive in Shandong, who said firms in the province, which imports the most soybeans for trading, may have reduced imports by 20 percent from earlier months.
OIL: October crude jumps on Canada-US pipeline shutdown
SINGAPORE, Sept 10 (Reuters) - U.S. crude for October jumped to near $75 after a leak forced Enbridge to shut down the biggest pipeline supplying Canadian oil to refineries in the Midwest.
The spread, or the discount of the front month to the second month, shrank to about $1.10 on the Enbridge news from almost $1.80 a barrel earlier this week, flattening a market structure known as contango, where prompt oil is cheaper than future supplies. October ICE Brent shed 17 cents to $77.30.
Soy product futures ended mixed, with adjustments in the meal/oil spread relationship featured. Soyoil futures managed to climb despite weakness in the rest of the complex, underpinned by a strong U.S. export program and spillover support from firm crude-oil futures, analysts said. The unwinding of meal oil spreads and weakness in soybeans weighed on soymeal futures. December soyoil settled 0.17 cents, or 0.4%, higher at 41.76 cents per pound. December soymeal ended $8.30, or 2.7%, lower at $293.70 per short ton. (Source: CME)
China August Edible Oil Imports 530,000 Tons; Down 33% On Year (Source: CME)
China's edible oil imports in August fell 33% from the same month last year to 530,000 metric tons, the General Administration of Customs said Friday. August's figure is down 14.5% compared with July. From January to August, edible oil imports fell 16.3% compared with the same period last year to 4.32 million tons.
China Aug soy imports down 3.6 pct, more falls seen
BEIJING, Sept 10 (Reuters) - China's soybean imports fell 3.6 percent on the month in August to 4.77 million tonnes, still the fourth largest monthly import ever, with further declines seen.
Crushers have booked less for coming months after massive imports -- a record 6.2 million tonnes in June followed by 4.95 million tonnes in July -- squeezed margins.
"Some trading houses have been losing money and reduced purchase volumes," said one trading executive in Shandong, who said firms in the province, which imports the most soybeans for trading, may have reduced imports by 20 percent from earlier months.
OIL: October crude jumps on Canada-US pipeline shutdown
SINGAPORE, Sept 10 (Reuters) - U.S. crude for October jumped to near $75 after a leak forced Enbridge to shut down the biggest pipeline supplying Canadian oil to refineries in the Midwest.
The spread, or the discount of the front month to the second month, shrank to about $1.10 on the Enbridge news from almost $1.80 a barrel earlier this week, flattening a market structure known as contango, where prompt oil is cheaper than future supplies. October ICE Brent shed 17 cents to $77.30.
Thursday, September 9, 2010
20100909 1149 Local & Global Economic News.
Malaysia: Ringgit ends at highest level in 13 years
The ringgit closed at its highest level in 13 years yesterday against the US dollar in line with other high-riding Asian currencies, dealers said. At 5pm, it touched a fresh 13-year high of 3.1110/1140 against the greenback, compared with a closing of 3.1230/1260 on Tuesday. A dealer said Asian currencies were in demand on optimism that Asian economic growth would be better than in other regions. (BT)
China: Trade surplus may exceed USD20bn, stoking tension
China may say that its trade surplus topped USD20bn for a third month in August in a report that risks stoking American lawmakers’ calls for protection from Chinese import. Exports probably exceeded imports by USD26.9bn, compared with USD15.7bn in the same month a year earlier, according to the median of 34 forecasts in a Bloomberg News survey. Shipments abroad gained 35% and imports grew 27.5%, according to the survey. (Bloomberg)
China: Should let markets drive yuan up, Geithner says
US Treasury Secretary Timothy F.Geithner said Chinese officials need to allow the yuan to rise more quickly against the dollar, in order to show China’s trading partners that the world’s second largest economy is following through on its promises. “Frankly they haven’t let the currency move very much so far,” he said in an interview. “They know they’re just at the beginning of that process and I think we’d like to see them move more quickly.” (Bloomberg)
Japan: Noda says ready to act as yen reaches 15-year high
Japanese Finance Minister Yoshihiko Noda said he is prepared to take “bold” action on currencies, including intervention in foreign-exchange markets, after the yen reached a 15-year high against the dollar. “We will take bold action if necessary and naturally that can include intervention,” he told lawmakers in parliament. “We have to use every option available as a strong yen is likely to have a severe impact on companies.” (Bloomberg)
Japan: Machine orders gain, backing BOJ pause on adding stimulus
Japan’s machinery orders and current account surplus exceeded forecasts in July even as the yen appreciated, supporting the central bank’s decision to hold off from further monetary easing. Orders rose 8.8% from June, the biggest gain this year, the Cabinet Office said in Tokyo. July’s current-account surplus widened 26% from a year earlier to 1.676 trillion yen (USD20bn), a separate report showed. (Bloomberg)
UK: House prices unexpectedly rose in August, Halifax says
UK house prices unexpectedly rose for a second month in August as a strengthening economy helped support demand, Halifax said. The average cost of a home rose 0.2% from July, when it gained 0.7%, the mortgage lending division of Lloyds Banking Group Plc said in a statement. Economists had forecast a 0.5% decline, based on the median of 12 estimates in a Bloomberg News survey. From a year earlier, prices rose 4.4% to an average 167,953 pounds (USD259,219). (Bloomberg)
US: Obama says progress on economy is 'painfully slow'
President Barack Obama said Republicans are advocating the same “flawed policies” that contributed to the worst recession since the 1930s and that the nation can’t afford to extend tax cuts for the wealthiest Americans. Obama said he recognizes that the recovery has been “painfully slow,” and he called on Congress to enact measures to cut taxes for businesses and middle-income Americans while letting rates rise for the richest taxpayers. (Bloomberg)
The ringgit closed at its highest level in 13 years yesterday against the US dollar in line with other high-riding Asian currencies, dealers said. At 5pm, it touched a fresh 13-year high of 3.1110/1140 against the greenback, compared with a closing of 3.1230/1260 on Tuesday. A dealer said Asian currencies were in demand on optimism that Asian economic growth would be better than in other regions. (BT)
China: Trade surplus may exceed USD20bn, stoking tension
China may say that its trade surplus topped USD20bn for a third month in August in a report that risks stoking American lawmakers’ calls for protection from Chinese import. Exports probably exceeded imports by USD26.9bn, compared with USD15.7bn in the same month a year earlier, according to the median of 34 forecasts in a Bloomberg News survey. Shipments abroad gained 35% and imports grew 27.5%, according to the survey. (Bloomberg)
China: Should let markets drive yuan up, Geithner says
US Treasury Secretary Timothy F.Geithner said Chinese officials need to allow the yuan to rise more quickly against the dollar, in order to show China’s trading partners that the world’s second largest economy is following through on its promises. “Frankly they haven’t let the currency move very much so far,” he said in an interview. “They know they’re just at the beginning of that process and I think we’d like to see them move more quickly.” (Bloomberg)
Japan: Noda says ready to act as yen reaches 15-year high
Japanese Finance Minister Yoshihiko Noda said he is prepared to take “bold” action on currencies, including intervention in foreign-exchange markets, after the yen reached a 15-year high against the dollar. “We will take bold action if necessary and naturally that can include intervention,” he told lawmakers in parliament. “We have to use every option available as a strong yen is likely to have a severe impact on companies.” (Bloomberg)
Japan: Machine orders gain, backing BOJ pause on adding stimulus
Japan’s machinery orders and current account surplus exceeded forecasts in July even as the yen appreciated, supporting the central bank’s decision to hold off from further monetary easing. Orders rose 8.8% from June, the biggest gain this year, the Cabinet Office said in Tokyo. July’s current-account surplus widened 26% from a year earlier to 1.676 trillion yen (USD20bn), a separate report showed. (Bloomberg)
UK: House prices unexpectedly rose in August, Halifax says
UK house prices unexpectedly rose for a second month in August as a strengthening economy helped support demand, Halifax said. The average cost of a home rose 0.2% from July, when it gained 0.7%, the mortgage lending division of Lloyds Banking Group Plc said in a statement. Economists had forecast a 0.5% decline, based on the median of 12 estimates in a Bloomberg News survey. From a year earlier, prices rose 4.4% to an average 167,953 pounds (USD259,219). (Bloomberg)
US: Obama says progress on economy is 'painfully slow'
President Barack Obama said Republicans are advocating the same “flawed policies” that contributed to the worst recession since the 1930s and that the nation can’t afford to extend tax cuts for the wealthiest Americans. Obama said he recognizes that the recovery has been “painfully slow,” and he called on Congress to enact measures to cut taxes for businesses and middle-income Americans while letting rates rise for the richest taxpayers. (Bloomberg)
20100909 1148 Malaysia Corporate News.
Water: Debt notes ratings downgraded, urgent govt intervention required
MARC and RAM have downgraded the ratings of debt notes issued by players in the Selangor water sector and cautioned of further downgrades in the absence of progress in industry restructuring. The issuers affected were Syabas, Puncak Niaga, Splash, RUN Holding SPV, Viable Chip (M) SB, Destinasi Teguh SB and Sungai Harmoni SB. (StarBiz)
Petronas Chemicals to list at PE of 15 times
Petronas Chemicals Group is likely to list at a price earnings multiple of around 15 times earnings, industry experts familiar with the exercise said. Although no details have been revealed on the size of the offering, it has been reported that banking sources familiar with the company reckon it could be valued as much as USD2bn. (StarBiz)
Tan Chong to assemble, distribute CKD buses
Tan Chong Motor Holdings’ subsidiary has been given the exclusive rights to assemble and distribute CKD buses under the Silver Bus brand in Malaysia. Silver Bus is a joint-venture company between Volvo Bus Corp and Xi'an Aircraft Industry. The agreement is for a period of 10 years. (BT)
George Kent bids for RM1bn projects
George Kent is bidding for more than RM1bn worth of domestic and overseas projects for its infrastructure investments, water and construction (IWC) division which is expected to be the main income generator for the group in the near future. The group was eyeing 5 IWC projects and it would take 3 to 6 months for negotiations in the tender process to be completed. (Financial Daily)
Cypark eyes RM2.5bn jobs, plans regional expansion
Cypark Resources may add about RM1.5bn to RM2.5bn to its orderbook if its bids for the 112 unsanitary landfill closure projects from the Malaysian government under the 10th Malaysia Plan are accepted. The company is seeking to raise as much as RM33m from its IPO and expects to list on Bursa Malaysia by end of the year. (The Malaysian Reserve & BT)
MARC and RAM have downgraded the ratings of debt notes issued by players in the Selangor water sector and cautioned of further downgrades in the absence of progress in industry restructuring. The issuers affected were Syabas, Puncak Niaga, Splash, RUN Holding SPV, Viable Chip (M) SB, Destinasi Teguh SB and Sungai Harmoni SB. (StarBiz)
Petronas Chemicals to list at PE of 15 times
Petronas Chemicals Group is likely to list at a price earnings multiple of around 15 times earnings, industry experts familiar with the exercise said. Although no details have been revealed on the size of the offering, it has been reported that banking sources familiar with the company reckon it could be valued as much as USD2bn. (StarBiz)
Tan Chong to assemble, distribute CKD buses
Tan Chong Motor Holdings’ subsidiary has been given the exclusive rights to assemble and distribute CKD buses under the Silver Bus brand in Malaysia. Silver Bus is a joint-venture company between Volvo Bus Corp and Xi'an Aircraft Industry. The agreement is for a period of 10 years. (BT)
George Kent bids for RM1bn projects
George Kent is bidding for more than RM1bn worth of domestic and overseas projects for its infrastructure investments, water and construction (IWC) division which is expected to be the main income generator for the group in the near future. The group was eyeing 5 IWC projects and it would take 3 to 6 months for negotiations in the tender process to be completed. (Financial Daily)
Cypark eyes RM2.5bn jobs, plans regional expansion
Cypark Resources may add about RM1.5bn to RM2.5bn to its orderbook if its bids for the 112 unsanitary landfill closure projects from the Malaysian government under the 10th Malaysia Plan are accepted. The company is seeking to raise as much as RM33m from its IPO and expects to list on Bursa Malaysia by end of the year. (The Malaysian Reserve & BT)
20100909 1132 Global Market News.
COMMODITY MARKETS: Stocks, euro rise on Europe relief
NEW YORK, Sept 8 (Reuters) - U.S. and European stock markets rose on Wednesday as worries about Europe's debt problems eased, allowing the euro to recover part of Tuesday's losses.
"The Portuguese debt auction was perceived well and has helped the market," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels.
Dollar to maintain its dominance -China minister
XIAMEN, China, Sept 8 (Reuters) - The dollar will remain the world's dominant currency for a long time, and the yuan will only gradually emerge as an alternative, Chinese Commerce Minister Chen Deming said on Wednesday.
China has surprised observers in recent months with a rapid succession of policies to promote the yuan's use overseas, but Chen cautioned against heightened expectations, saying that these moves had been limited and regional in focus.
Japan capex stabilising, strong yen a threat
TOKYO, Sept 8 (Reuters) - Japanese machinery orders surged by the most in seven months in July, but economists worry that a surging yen and a slowdown in overseas economies could snuff out a gradual recovery in capital expenditure.
Second-quarter gross domestic product growth is likely to be revised up on Friday as corporate spending grew faster than initially estimated, although the financial markets are focused on worries about the outlook.
PRECIOUS-Gold rises on bank scare; holds near lifetime high
SINGAPORE, Sept 8 (Reuters) - Gold gained on Wednesday, within sight of a 2-month high hit the previous day, as global stocks tumbled and the euro slipped on renewed fears about the health of the global economy.
"There's a possibility that we'll see gold breaching the $1,260 level," said Ong Yi Ling, an investment analyst at Phillip Futures in Singapore.
FOREX-Yen tests Japanese resolve, Swiss franc buoyant
LONDON, Sept 8 (Reuters) - The yen struck a fresh 15-year high against the dollar and the Swiss franc hit an all-time peak versus the euro on Wednesday as a flare-up in worries over euro zone banks and sovereign debt led investors into safe havens.
"There's been intensification in verbal rhetoric from Japan but I don't think they will intervene here. The serious intervention risk comes in below 80 yen," said Manuel Oliveri, currency strategist at UBS in Zurich.
Skittish investors lift Europe stocks, hit dlr
LONDON, Sept 8 (Reuters) - World shares were generally weaker but gaining in Europe, subject to another bout of on-again, off-again investor jitters, this time about European banks.
"Profits generally from active traders have been pretty soft so they are trying to eke out a positive return but they are also wary of ending down for the year," said Jeremy Armitage, head of research at State Street Global Markets.
NEW YORK, Sept 8 (Reuters) - U.S. and European stock markets rose on Wednesday as worries about Europe's debt problems eased, allowing the euro to recover part of Tuesday's losses.
"The Portuguese debt auction was perceived well and has helped the market," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels.
Dollar to maintain its dominance -China minister
XIAMEN, China, Sept 8 (Reuters) - The dollar will remain the world's dominant currency for a long time, and the yuan will only gradually emerge as an alternative, Chinese Commerce Minister Chen Deming said on Wednesday.
China has surprised observers in recent months with a rapid succession of policies to promote the yuan's use overseas, but Chen cautioned against heightened expectations, saying that these moves had been limited and regional in focus.
Japan capex stabilising, strong yen a threat
TOKYO, Sept 8 (Reuters) - Japanese machinery orders surged by the most in seven months in July, but economists worry that a surging yen and a slowdown in overseas economies could snuff out a gradual recovery in capital expenditure.
Second-quarter gross domestic product growth is likely to be revised up on Friday as corporate spending grew faster than initially estimated, although the financial markets are focused on worries about the outlook.
PRECIOUS-Gold rises on bank scare; holds near lifetime high
SINGAPORE, Sept 8 (Reuters) - Gold gained on Wednesday, within sight of a 2-month high hit the previous day, as global stocks tumbled and the euro slipped on renewed fears about the health of the global economy.
"There's a possibility that we'll see gold breaching the $1,260 level," said Ong Yi Ling, an investment analyst at Phillip Futures in Singapore.
FOREX-Yen tests Japanese resolve, Swiss franc buoyant
LONDON, Sept 8 (Reuters) - The yen struck a fresh 15-year high against the dollar and the Swiss franc hit an all-time peak versus the euro on Wednesday as a flare-up in worries over euro zone banks and sovereign debt led investors into safe havens.
"There's been intensification in verbal rhetoric from Japan but I don't think they will intervene here. The serious intervention risk comes in below 80 yen," said Manuel Oliveri, currency strategist at UBS in Zurich.
Skittish investors lift Europe stocks, hit dlr
LONDON, Sept 8 (Reuters) - World shares were generally weaker but gaining in Europe, subject to another bout of on-again, off-again investor jitters, this time about European banks.
"Profits generally from active traders have been pretty soft so they are trying to eke out a positive return but they are also wary of ending down for the year," said Jeremy Armitage, head of research at State Street Global Markets.
20100909 1123 Palm Oil News.
Palm oil hits new three-week high on demand hopes
KUALA LUMPUR, Sept 8 (Reuters) - Malaysian crude palm oil futures hit fresh three-week highs as traders bet on a recovery in exports this month even as news of China buying rival soyoil prompted some pullback.
"The bulls don't want to be left out, if there is a recovery in palm oil exports this month. But China's increased appetite for soyoil may take some of the excitement out of palm oil," said a Singaporean vegetable oils trader.
KUALA LUMPUR, Sept 8 (Reuters) - Malaysian crude palm oil futures hit fresh three-week highs as traders bet on a recovery in exports this month even as news of China buying rival soyoil prompted some pullback.
"The bulls don't want to be left out, if there is a recovery in palm oil exports this month. But China's increased appetite for soyoil may take some of the excitement out of palm oil," said a Singaporean vegetable oils trader.
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