China: Industrial companies’ profits climb
Chinse industrial companies’ profits climbed 55% in the first eight months of 2010 from a year earlier, bolstering investment as the government pares back stimulus. Net income increased to RMB 2.6 trn (USD390bn), compared with an 11% decline in the same period in 2009. This number gave little indication that labor costs are dragging earnings, after local governments increased minimum wages and companies such as Foxconn Technology Group boosted pay. (Bloomberg)
Hong Kong: Exports unexpectedly increased
Hong Kong’s exports unexpectedly climbed the most in more than 18 years in August, buoyed by Chinese demand and the comparison with a decline a year earlier. Overseas sales increased 36% to HKD 290.1 bn after a 23.3% gain in July, the government said on its website today. None of seven economists in a Bloomberg News survey forecasted such a large jump. (Bloomberg)
Japan: Export growth slows
Japan’s exports grew at the slowest pace this year in August as a decrease in global demand and an advance in the yen threaten to undermine the nation’s recovery. Overseas shipments increased 15.8% from a year earlier, the slowest since December, underscoring concerns that the country’s recovery may falter after cooling exports and stagnant consumer demand more than halved the nation’s growth rate last quarter. The median estimate of 21 economists surveyed by Bloomberg News was for a 19% increase. (Bloomberg)
South Korea: Consumer confidence declines to 14-month low
South Korea’s consumer confidence fell to the lowest level in 14 months amid concern that the nation’s economic recovery will slow. The sentiment index declined for a second straight month to 109 in September from 110 in August, the Bank of Korea said. The index’s recent peak was a seven-year high of 117 in October. A number exceeding 100 indicates optimists outnumber pessimists. A sub-index measuring consumers’ views of the economic outlook dropped to 108 in September from 109 in August, while the expected inflation rate over the next year remained at 3.2%. (Bloomberg)
UK: Home prices decline most in 18 months
UK home values dropped by the most in 18 months in September as all of Britain’s regions posted price declines. The average cost of a home fell 0.4% from the previous month to GBP 157,600 (USD249,000), the third consecutive monthly drop and the biggest since March 2009. Housing demand fell the most since January 2009. Prices rose in September by 1% from a year earlier, the least in seven months. Prices fell in all regions for the first time since April 2009. (Bloomberg)
US: US sets duties on China and Mexico
The US imposed dumping duties on copper pipes and tubes from China and Mexico. The duties will be as much as 60.85% on USD233m of imports from China and as much as 31.43% on USD 130m of imports from Mexico for the products, used in plumbing and for carrying liquids or gases in heating systems. The decision, announced by the Commerce Department, is the third of four needed to make the tariffs final. Chinese and Mexican copper tube makers will have to deposit duties for products shipped to the US while the case is pending. The final ruling is scheduled for 8 Nov. (Bloomberg)
U.S: China bill in Congress may prompt retaliation, businesses say . U.S. legislation pressing China to raise the value of its currency may boomerang by prompting retaliation against American businesses operating there, representatives of those companies said. The House of Representatives is set to consider legislation this week that would let companies petition for higher duties on imports from China to compensate for the effect of a weak currency. (Source: Bloomberg)
Gold: Central banks and the IMF sold about 94.5 metric tons of gold in the year that ended on Sept. 27 , the lowest amount under an agreement that began in 1999, according to data from the World Gold Council. Eurozone banks disposed of 6.2 tons, led by Germany, Greece and Malta, while the International Monetary Fund sold 88.3 tons. The figure for the Eurozone banks was 96% below last year's 142 tons. (Source: Bloomberg)
Tuesday, September 28, 2010
20100928 1127 Malaysia Corporate News.
Another possible by-election in Malaysia
Galas assemblyman Che Hashim Sulaiman died at the Al-Islam Medical Centre in Kampung Baru, Kuala Lumpur, today after a long battle with colon cancer. He was 45. This signals the possibility of another byelection. (NST)
Syabas may get tariff hike
A water tariff hike of between 15% and 20% may be in the offing for Syarikat Bekalan Air Selangor SB (Syabas), sources said. The increment would be a lifesaver for the water treatment players, Syarikat Pengeluar Selangor Holdings (Splash) and Konsortium Abbas SB, which are both on the verge of defaulting on their debt commitments. It is understood that the federal government has agreed in principle to the tariff hike for Syabas, but has yet to get the green light from the Selangor state government which is run by the opposition Pakatan Rakyat. Syabas has the mandate to supply treated water to Kuala Lumpur, Selangor and the federal capital of Putrajaya and under its concession agreement was supposed to get a 37% tariff hike last year. (Financial Daily)
Muhyiddin: Govt yet to decide on PLUS sale
The Government has not made any decision on the sale of PLUS Expressways, says the Deputy Prime Minister. A blog said last week that the Government had given the green light for the Employees Provident Fund to buy PLUS. An earlier report had said that Khazanah might sell its stake in the toll road operator. In the past, privately-held Asas Serba SB had voiced its interest in the highway. It had proposed to pay RM50bn for 25 toll highways and said that its plan would end toll rate increases and help the Government save RM114bn in compensation payments until 2038. (BT)
Taliworks' subsidiary in RM66.8m water project in China
Taliworks Corporation, via its 70% indirectly subsidiary Eco3 Technology and Engineering Pte Ltd, on Monday announced the signing of a 30-year concession agreement to construct and operate the Meihua industrial waste water treatment and recycled water plant in Ningxia Province, China. The project is estimated to cost 145m reminbi (RM66.8m) and construction will proceed with phase one with a treatment capacity of 30m litres per day (MLD), it said in a statement. The Meihua project is an extension of Taliworks' quest for similar industrial waste water projects within the fast-developing Ningxia Province, the group said. (Bernama)
Sarawak seeks debt guarantee
The offer price of RM6.2bn for the 2,400 MW Bakun dam mostly comprises debt that is guaranteed by the Federal Government, with a remaining RM450m that is likely to be paid via installments, according to sources. While there is no mention of debt repayment, it is assumed that the state government will service the loans which it proposes to be still guaranteed by the Federal Government. It is learnt that the average interest rate is less than 6% for 12 years ending 2023. (StarBiz)
EONCap shareholders give HLBB offer the nod
EONCap’s shareholders had approved all the proposed resolutions, including the proposed divestment of the group’s banking operations for RM5.06bn cash, or RM7.30 per share to HLBB. However, another stumbling block is ahead for HLBB – the pending lawsuit filed by substantial shareholder, Primus Pacific Partners, against the existing board of directors. (FinancialDaily))
SunCity steps up presence in Penang, plans RM800m property project
Sunway City (Suncity) is boosting its presence in Penang and plans to undertake a residential property project in the southwest district of Penang island with an estimated gross development value of RM800m. Suncity said yesterday that its unit, Sunway City (Penang) SB, had entered into a sale and purchase agreement with Sungai Ara Holdings SB to acquire 32.78ha of freehold land for RM38.76m for residential property development. (Financial Daily)
Kimlun awarded RM64.8m for the construction of 25-storey service apartments
Kimlun announced yesterday that its wholly-owned subsidiary, Kimlun SB, yesterday received the letter of award for the contract sum of RM64.8m from Bukit Indah (Johor) SB, a wholly owned subsidiary of SP Setia, for the construction of Main Building Works for 2 blocks of 25-storey service apartments and ancillary buildings at Bukit Indah, Bandar Nusajaya, Mukim Pulai, daerah Johor Bahru, Johor. The scope of works comprises building construction works for the service apartments and ancillary buildings, which will be due to be completed by September 2012. (BursaMalaysia)
Aerospace: Mida completes talks with Pratt & Whitney. The Malaysian Investment Development Authority (Mida) has concluded negotiations with Pratt & Whitney for the American aircraft engine maker to set up shop here, its director-general Datuk Jalilah Baba says. "Pratt & Whitney is seriously looking at having a base in Malaysia." Locally, it has a USD680m (RM2.1b) deal with national carrier Malaysia Airlines to provide 34 engines for 17 of the airline's new Airbus aircraft. "They will come here. We are also talking to several other aerospace-related companies," Jalilah said. (Source: Business Times)
Khazanah: Ties up with Camco. Khazanah will acquire 9.28m ordinary of Camco shares at 20 pence (98 sen) each, and in turn, form a joint venture with Camco to expand carbon-trading operations in Asia. Shares in the London, UK-based manager of emission-reduction projects jumped 41% to 20.5 pence (RM1) as of 8.36am local time, the highest price since December 29 last year. The purchase will give Khazanah a 5.3% stake in the company. The joint venture will be capitalised with as much as USD46m (RM142m) to invest in the emissions-to-energy market in Southeast Asia. (Source: Business Times)
MAS: Sees 40% rise in capacity for India flights. Malaysia Airlines (MAS) is looking at 40% capacity increase next year for flights from Indian cities, based on growing demand from business and leisure travellers. MAS plans to leverage on the delivery of new planes and increased frequencies of flights to support the projected growth, MAS' regional manager for South Asia operations Azahar Hamid said. (Source: Business Times)
Plantation: New clone unveiled. A new oil palm clone dubbed the Wakuba oil palm ramet was launched with a promise of doubling the current oil yield. Named after TSH Resources Bhd unit TSH Biotech Sdn Bhd's 5-year old tissue-culture laboratory in Wakuba Gading, Tawau, Sabah, the new clone promises an oil yield of up to 10 tonnes per ha compared to average current yield of about 4.5 tonnes per ha in the country. TSH Resources chairman Datuk Kelvin Tan said the company had invested RM25m in the laboratory, which is expected to produce 1.5m ramets by 2015 compared with 500,000 this year. (Source: The Star)
Plenitude: To buy Penang land. Plenitude Bhd's wholly owned unit, Plenitude Estates Sdn Bhd, has agreed to buy 21.3ha of freehold land in Balik Pulau, Penang, from United Formula Sdn Bhd and Affluent Base Sdn Bhd for RM40.1m. The land is earmarked for mixed development that includes double-storey and super-link houses as well as 2-3 storey shops with an estimated gross development value of RM230m. (Source: Business Times)
REDtone: To submit 4G business plan soon. REDtone International Bhd plans to submit a detailed business plan to the Malaysian Communications and Multimedia Commission soon on how it plans to use new bandwidth that allows even faster services than what's available now. (Source: Business Times)
Galas assemblyman Che Hashim Sulaiman died at the Al-Islam Medical Centre in Kampung Baru, Kuala Lumpur, today after a long battle with colon cancer. He was 45. This signals the possibility of another byelection. (NST)
Syabas may get tariff hike
A water tariff hike of between 15% and 20% may be in the offing for Syarikat Bekalan Air Selangor SB (Syabas), sources said. The increment would be a lifesaver for the water treatment players, Syarikat Pengeluar Selangor Holdings (Splash) and Konsortium Abbas SB, which are both on the verge of defaulting on their debt commitments. It is understood that the federal government has agreed in principle to the tariff hike for Syabas, but has yet to get the green light from the Selangor state government which is run by the opposition Pakatan Rakyat. Syabas has the mandate to supply treated water to Kuala Lumpur, Selangor and the federal capital of Putrajaya and under its concession agreement was supposed to get a 37% tariff hike last year. (Financial Daily)
Muhyiddin: Govt yet to decide on PLUS sale
The Government has not made any decision on the sale of PLUS Expressways, says the Deputy Prime Minister. A blog said last week that the Government had given the green light for the Employees Provident Fund to buy PLUS. An earlier report had said that Khazanah might sell its stake in the toll road operator. In the past, privately-held Asas Serba SB had voiced its interest in the highway. It had proposed to pay RM50bn for 25 toll highways and said that its plan would end toll rate increases and help the Government save RM114bn in compensation payments until 2038. (BT)
Taliworks' subsidiary in RM66.8m water project in China
Taliworks Corporation, via its 70% indirectly subsidiary Eco3 Technology and Engineering Pte Ltd, on Monday announced the signing of a 30-year concession agreement to construct and operate the Meihua industrial waste water treatment and recycled water plant in Ningxia Province, China. The project is estimated to cost 145m reminbi (RM66.8m) and construction will proceed with phase one with a treatment capacity of 30m litres per day (MLD), it said in a statement. The Meihua project is an extension of Taliworks' quest for similar industrial waste water projects within the fast-developing Ningxia Province, the group said. (Bernama)
Sarawak seeks debt guarantee
The offer price of RM6.2bn for the 2,400 MW Bakun dam mostly comprises debt that is guaranteed by the Federal Government, with a remaining RM450m that is likely to be paid via installments, according to sources. While there is no mention of debt repayment, it is assumed that the state government will service the loans which it proposes to be still guaranteed by the Federal Government. It is learnt that the average interest rate is less than 6% for 12 years ending 2023. (StarBiz)
EONCap shareholders give HLBB offer the nod
EONCap’s shareholders had approved all the proposed resolutions, including the proposed divestment of the group’s banking operations for RM5.06bn cash, or RM7.30 per share to HLBB. However, another stumbling block is ahead for HLBB – the pending lawsuit filed by substantial shareholder, Primus Pacific Partners, against the existing board of directors. (FinancialDaily))
SunCity steps up presence in Penang, plans RM800m property project
Sunway City (Suncity) is boosting its presence in Penang and plans to undertake a residential property project in the southwest district of Penang island with an estimated gross development value of RM800m. Suncity said yesterday that its unit, Sunway City (Penang) SB, had entered into a sale and purchase agreement with Sungai Ara Holdings SB to acquire 32.78ha of freehold land for RM38.76m for residential property development. (Financial Daily)
Kimlun awarded RM64.8m for the construction of 25-storey service apartments
Kimlun announced yesterday that its wholly-owned subsidiary, Kimlun SB, yesterday received the letter of award for the contract sum of RM64.8m from Bukit Indah (Johor) SB, a wholly owned subsidiary of SP Setia, for the construction of Main Building Works for 2 blocks of 25-storey service apartments and ancillary buildings at Bukit Indah, Bandar Nusajaya, Mukim Pulai, daerah Johor Bahru, Johor. The scope of works comprises building construction works for the service apartments and ancillary buildings, which will be due to be completed by September 2012. (BursaMalaysia)
Aerospace: Mida completes talks with Pratt & Whitney. The Malaysian Investment Development Authority (Mida) has concluded negotiations with Pratt & Whitney for the American aircraft engine maker to set up shop here, its director-general Datuk Jalilah Baba says. "Pratt & Whitney is seriously looking at having a base in Malaysia." Locally, it has a USD680m (RM2.1b) deal with national carrier Malaysia Airlines to provide 34 engines for 17 of the airline's new Airbus aircraft. "They will come here. We are also talking to several other aerospace-related companies," Jalilah said. (Source: Business Times)
Khazanah: Ties up with Camco. Khazanah will acquire 9.28m ordinary of Camco shares at 20 pence (98 sen) each, and in turn, form a joint venture with Camco to expand carbon-trading operations in Asia. Shares in the London, UK-based manager of emission-reduction projects jumped 41% to 20.5 pence (RM1) as of 8.36am local time, the highest price since December 29 last year. The purchase will give Khazanah a 5.3% stake in the company. The joint venture will be capitalised with as much as USD46m (RM142m) to invest in the emissions-to-energy market in Southeast Asia. (Source: Business Times)
MAS: Sees 40% rise in capacity for India flights. Malaysia Airlines (MAS) is looking at 40% capacity increase next year for flights from Indian cities, based on growing demand from business and leisure travellers. MAS plans to leverage on the delivery of new planes and increased frequencies of flights to support the projected growth, MAS' regional manager for South Asia operations Azahar Hamid said. (Source: Business Times)
Plantation: New clone unveiled. A new oil palm clone dubbed the Wakuba oil palm ramet was launched with a promise of doubling the current oil yield. Named after TSH Resources Bhd unit TSH Biotech Sdn Bhd's 5-year old tissue-culture laboratory in Wakuba Gading, Tawau, Sabah, the new clone promises an oil yield of up to 10 tonnes per ha compared to average current yield of about 4.5 tonnes per ha in the country. TSH Resources chairman Datuk Kelvin Tan said the company had invested RM25m in the laboratory, which is expected to produce 1.5m ramets by 2015 compared with 500,000 this year. (Source: The Star)
Plenitude: To buy Penang land. Plenitude Bhd's wholly owned unit, Plenitude Estates Sdn Bhd, has agreed to buy 21.3ha of freehold land in Balik Pulau, Penang, from United Formula Sdn Bhd and Affluent Base Sdn Bhd for RM40.1m. The land is earmarked for mixed development that includes double-storey and super-link houses as well as 2-3 storey shops with an estimated gross development value of RM230m. (Source: Business Times)
REDtone: To submit 4G business plan soon. REDtone International Bhd plans to submit a detailed business plan to the Malaysian Communications and Multimedia Commission soon on how it plans to use new bandwidth that allows even faster services than what's available now. (Source: Business Times)
20100928 1108 Global Market News.
OIL: Crude tracks equities lower as dollar strengthens
SINGAPORE, Sept 28 (Reuters) - Oil fell towards $76 on Tuesday, tracking Asian equities lower on lingering concerns about euro-zone debt, which also boosted the dollar.
U.S. crude oil stockpiles probably fell by 400,000 barrels last week on lower imports as seasonal refinery maintenance slowed demand, a preliminary Reuters poll of analysts showed on Monday, ahead of weekly inventory reports Tuesday and Wednesday.
COMMODITY MARKETS: Gold, sugar rally; wheat leads losses in grains
NEW YORK, Sept 27 (Reuters) - Gold touched another record high on Monday before finishing flat in thin trade, and oil and a few other commodities also ended little changed or softer after being weighed down by equities and directionless trade.
"Most complexes show prices stuck in tight trading ranges, with little indication that they will break out one way or another," Edward Meir, senior commodities analyst at MF Global in New York, wrote in a commentary on oil.
GLOBAL MARKETS: Gold, bonds soar on debt woes, Fed speculation
NEW YORK, Sept 27 (Reuters) - Gold hit a record high of $1,300 per ounce and U.S. Treasury prices surged on Monday on renewed worries about euro-zone debt and expectations the Federal Reserve will further ease monetary policy.
"The euro right now is being pulled in a tug of war between the sovereign debt crisis still existing in the euro zone versus the prospect of a very serious QE2 (another round of quantitative easing) out of the U.S.," said Boris Schlossberg, director of FX research at GFT in New York.
PRECIOUS-Gold hits record at $1,300; silver at 30-year high
LONDON, Sept 27 (Reuters) - Gold powered to hit a record high at $1,300 an ounce as investors poured money into bullion on fears of looming inflationary pressures as well as worries about the health of the global economy.
Silver, often considered the poor man's gold, rose to a 30-year high as investors chased a cheaper alternative. The metal has gained nearly 30 percent this year, catching up with gold.
World stocks near 5-month high, M&A lifts mood
LONDON, Sept 27 (Reuters) - World stocks hit their highest level in nearly five months on Monday while oil prices rose as growing corporate merger activity and last week's upbeat U.S. economic data encouraged investors to buy risky assets.
Unilever has agreed to buy U.S.-based hair care firm Alberto Culver for $3.7 billion in cash. A source said China's Bright Food Group is exploring the purchase of Britain's United Biscuits in a possible $3.2 billion deal.
Asian stocks rally, dollar dips to five-month low
SINGAPORE, Sept 27 (Reuters) - Asian stocks rose to their highest in more than two years in response to optimism on the U.S. economy, while the dollar dipped to five-month lows against the euro.
"Wall Street's rise has provided a bit of a boost but gains on the U.S. data are mainly because the figures weren't quite as bad as expected, not that they were really good," said Takashi Ushio, head of the investment strategy division at Marusan Securities. "So gains on this alone will be limited."
SINGAPORE, Sept 28 (Reuters) - Oil fell towards $76 on Tuesday, tracking Asian equities lower on lingering concerns about euro-zone debt, which also boosted the dollar.
U.S. crude oil stockpiles probably fell by 400,000 barrels last week on lower imports as seasonal refinery maintenance slowed demand, a preliminary Reuters poll of analysts showed on Monday, ahead of weekly inventory reports Tuesday and Wednesday.
COMMODITY MARKETS: Gold, sugar rally; wheat leads losses in grains
NEW YORK, Sept 27 (Reuters) - Gold touched another record high on Monday before finishing flat in thin trade, and oil and a few other commodities also ended little changed or softer after being weighed down by equities and directionless trade.
"Most complexes show prices stuck in tight trading ranges, with little indication that they will break out one way or another," Edward Meir, senior commodities analyst at MF Global in New York, wrote in a commentary on oil.
GLOBAL MARKETS: Gold, bonds soar on debt woes, Fed speculation
NEW YORK, Sept 27 (Reuters) - Gold hit a record high of $1,300 per ounce and U.S. Treasury prices surged on Monday on renewed worries about euro-zone debt and expectations the Federal Reserve will further ease monetary policy.
"The euro right now is being pulled in a tug of war between the sovereign debt crisis still existing in the euro zone versus the prospect of a very serious QE2 (another round of quantitative easing) out of the U.S.," said Boris Schlossberg, director of FX research at GFT in New York.
PRECIOUS-Gold hits record at $1,300; silver at 30-year high
LONDON, Sept 27 (Reuters) - Gold powered to hit a record high at $1,300 an ounce as investors poured money into bullion on fears of looming inflationary pressures as well as worries about the health of the global economy.
Silver, often considered the poor man's gold, rose to a 30-year high as investors chased a cheaper alternative. The metal has gained nearly 30 percent this year, catching up with gold.
World stocks near 5-month high, M&A lifts mood
LONDON, Sept 27 (Reuters) - World stocks hit their highest level in nearly five months on Monday while oil prices rose as growing corporate merger activity and last week's upbeat U.S. economic data encouraged investors to buy risky assets.
Unilever has agreed to buy U.S.-based hair care firm Alberto Culver for $3.7 billion in cash. A source said China's Bright Food Group is exploring the purchase of Britain's United Biscuits in a possible $3.2 billion deal.
Asian stocks rally, dollar dips to five-month low
SINGAPORE, Sept 27 (Reuters) - Asian stocks rose to their highest in more than two years in response to optimism on the U.S. economy, while the dollar dipped to five-month lows against the euro.
"Wall Street's rise has provided a bit of a boost but gains on the U.S. data are mainly because the figures weren't quite as bad as expected, not that they were really good," said Takashi Ushio, head of the investment strategy division at Marusan Securities. "So gains on this alone will be limited."
20100928 1107 Soy Oil & Palm Oil Related News.
Soy product futures ended mixed, with soyoil climbing at the expense of soymeal on fears of tightening global vegoil supplies. The soyoil market also garnered support from a strong export demand base, analysts said. Soymeal slipped lower on oil/meal spreading. December soyoil settled 0.08 cents or 0.2% higher at 44.97 cents per pound. December soymeal ended $1.30 or 0.4% lower at $315.70 per short ton.(Source:CME)
Malaysia, Indonesia Palm Oil Output To Expand By 2.5M Tons In 2010-11 - Analyst (Source:CME)
Palm oil production growth in Malaysia and Indonesia, the world's top producers of the commodity, may expand by 2.5 million metric tons during the calendar year 2010-2011, as widespread rain will boost palm yields and as the lower palm production period ends, vegetable oils analyst Dorab Mistry said. "The biological low cycle will come to an end around June 2011 and the higher cycle should coincide with the beneficial after-effects of good rainfall in 2010," Mistry, director at Godrej International Ltd., said in a speech prepared for an industry conference in Mumbai, India. Mistry reiterated his forecast for Malaysian crude palm oil output this year, saying that an El Nino-related dry spell late last year will likely cut production by 2.3% to around 17.2 million tons, as the two-month dry spell caused tree stress and lowered crop yields. He estimated Indonesia's palm oil production in 2010 to reach 22.5 million from 22 million tons last year.
Mistry said palm prices are likely to trade lower the next four to six weeks, as he predicted a strong recovery in CPO production, which "will spillover into November. Malaysia's month-end stocks will rise and prices will need to go lower." Malaysia's September CPO output is likely to grow at a slower pace, as harvesting was disrupted when workers headed home for the Eid ul-Fitr celebrations earlier this month, traders said. "We could lose about MYR150-MYR200...After that weak spell, prices should begin to recover as exports remain strong," Mistry said, as major vegetable oil buyers India and China restock supplies, tipping prices to rally to MYR3,000-MYR3,200/ton by January next year. He also said global soyoil production for 2010-2011 period is projected to increase by about 2.1 million tons, Mistry said, citing higher rate of crushing and ample supply of global soybeans.
Rival soyoil prices will likely rise to rise sharply, to $1,050 a ton free-on-board Argentina ports by January, he said, widening the gap between soy oil and palm oil, making the latter a cheaper alternative to price-sensitive buyers. CPO usually trades a wide discount to soyoil, but a record crop of soybeans from South America this year and a likely record harvest from the U.S. even as palm production slowed, has pushed it into a narrow discount around $10-$20/ton the last few months.
Soy at 13-month top; corn, wheat rise on weak dollar
SINGAPORE, Sept 27 (Reuters) - Chicago soy futures climbed to a 13-month top on Monday, rising nearly 1 percent, while corn scaled a new 2-year peak as a weak dollar and tight supplies continued to buoy the grain market.
Soybeans gained additional strength from a rally in Asian vegetable oil markets, led by China's Dalian futures, estimates of sowing falling in the United States next year and dry weather hurting prospects of soon to be planted South American crops.
Climb on China, weather; palm at highest since May 2009
JAKARTA/KUALA LUMPUR, Sept 27 (Reuters) - Malaysian palm oil hit its highest level since May 2009 and other global vegetable oil markets rallied on Monday as traders bet on top buyers China and India snapping up more cargoes in the months to come.
An industry conference in Mumbai forecast that India will buy a record amount of vegetable oil in the new marketing year and China's Ministry of Commerce revised up its estimate for September soy imports.
China MofCom ups Sept soy import est to 4.9 mln T
BEIJING, Sept 27 (Reuters) - China's commerce ministry has revised up its estimate for soy imports in September to 4.9 million tonnes, the second largest level ever, lifted from an earlier estimate of 4.7 million tonnes.
Cheap South American soy imports, coupled with a capacity expansion, led soy plants to book more of the oilseed after record imports of 6.2 million tonnes in June.
Palm oil to rise by Jan after weak Oct-Mistry
MUMBAI, Sept 26 (Reuters) - Malaysian crude palm oil futures could rise at least 11 percent to 3,000-3,200 ringitt per tonne by January as demand strengthens but prices may weaken slightly next month as output and stocks rise, top analyst Dorab Mistry said.
Crude palm oil production would recover in October and Malaysia's month-end stocks would swell, he said on Sunday, suggesting that Malaysia's benchmark palm oil futures, which closed at 2,701 ringgit ($871.8) on Friday, would weaken.
Soyoil, biofuels may lift crude palm oil - Mielke
MUMBAI, Sept 25 (Reuters) - Robust biofuel demand and firm soyoil prices may lift crude palm oil (CPO) prices by 11 percent to 3,000 ringgits per tonne in five months, a top industry analyst said on Saturday.
On Friday, Malaysia's benchmark palm oil futures rose by more than 1 percent to close at 2,701 ringgit ($871.8).
Malaysia, Indonesia Palm Oil Output To Expand By 2.5M Tons In 2010-11 - Analyst (Source:CME)
Palm oil production growth in Malaysia and Indonesia, the world's top producers of the commodity, may expand by 2.5 million metric tons during the calendar year 2010-2011, as widespread rain will boost palm yields and as the lower palm production period ends, vegetable oils analyst Dorab Mistry said. "The biological low cycle will come to an end around June 2011 and the higher cycle should coincide with the beneficial after-effects of good rainfall in 2010," Mistry, director at Godrej International Ltd., said in a speech prepared for an industry conference in Mumbai, India. Mistry reiterated his forecast for Malaysian crude palm oil output this year, saying that an El Nino-related dry spell late last year will likely cut production by 2.3% to around 17.2 million tons, as the two-month dry spell caused tree stress and lowered crop yields. He estimated Indonesia's palm oil production in 2010 to reach 22.5 million from 22 million tons last year.
Mistry said palm prices are likely to trade lower the next four to six weeks, as he predicted a strong recovery in CPO production, which "will spillover into November. Malaysia's month-end stocks will rise and prices will need to go lower." Malaysia's September CPO output is likely to grow at a slower pace, as harvesting was disrupted when workers headed home for the Eid ul-Fitr celebrations earlier this month, traders said. "We could lose about MYR150-MYR200...After that weak spell, prices should begin to recover as exports remain strong," Mistry said, as major vegetable oil buyers India and China restock supplies, tipping prices to rally to MYR3,000-MYR3,200/ton by January next year. He also said global soyoil production for 2010-2011 period is projected to increase by about 2.1 million tons, Mistry said, citing higher rate of crushing and ample supply of global soybeans.
Rival soyoil prices will likely rise to rise sharply, to $1,050 a ton free-on-board Argentina ports by January, he said, widening the gap between soy oil and palm oil, making the latter a cheaper alternative to price-sensitive buyers. CPO usually trades a wide discount to soyoil, but a record crop of soybeans from South America this year and a likely record harvest from the U.S. even as palm production slowed, has pushed it into a narrow discount around $10-$20/ton the last few months.
Soy at 13-month top; corn, wheat rise on weak dollar
SINGAPORE, Sept 27 (Reuters) - Chicago soy futures climbed to a 13-month top on Monday, rising nearly 1 percent, while corn scaled a new 2-year peak as a weak dollar and tight supplies continued to buoy the grain market.
Soybeans gained additional strength from a rally in Asian vegetable oil markets, led by China's Dalian futures, estimates of sowing falling in the United States next year and dry weather hurting prospects of soon to be planted South American crops.
Climb on China, weather; palm at highest since May 2009
JAKARTA/KUALA LUMPUR, Sept 27 (Reuters) - Malaysian palm oil hit its highest level since May 2009 and other global vegetable oil markets rallied on Monday as traders bet on top buyers China and India snapping up more cargoes in the months to come.
An industry conference in Mumbai forecast that India will buy a record amount of vegetable oil in the new marketing year and China's Ministry of Commerce revised up its estimate for September soy imports.
China MofCom ups Sept soy import est to 4.9 mln T
BEIJING, Sept 27 (Reuters) - China's commerce ministry has revised up its estimate for soy imports in September to 4.9 million tonnes, the second largest level ever, lifted from an earlier estimate of 4.7 million tonnes.
Cheap South American soy imports, coupled with a capacity expansion, led soy plants to book more of the oilseed after record imports of 6.2 million tonnes in June.
Palm oil to rise by Jan after weak Oct-Mistry
MUMBAI, Sept 26 (Reuters) - Malaysian crude palm oil futures could rise at least 11 percent to 3,000-3,200 ringitt per tonne by January as demand strengthens but prices may weaken slightly next month as output and stocks rise, top analyst Dorab Mistry said.
Crude palm oil production would recover in October and Malaysia's month-end stocks would swell, he said on Sunday, suggesting that Malaysia's benchmark palm oil futures, which closed at 2,701 ringgit ($871.8) on Friday, would weaken.
Soyoil, biofuels may lift crude palm oil - Mielke
MUMBAI, Sept 25 (Reuters) - Robust biofuel demand and firm soyoil prices may lift crude palm oil (CPO) prices by 11 percent to 3,000 ringgits per tonne in five months, a top industry analyst said on Saturday.
On Friday, Malaysia's benchmark palm oil futures rose by more than 1 percent to close at 2,701 ringgit ($871.8).
Monday, September 27, 2010
20100927 1844 FCPO EOD Daily Chart Study.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer position stay firm.
Support : 2720, 2700, 2670 level.
Resistant : 2750, 2770, 2800 level.
Comment :
Increased volume transaction FCPO closed higher after opened at the high of the day followed by some mild profit taking activities pulled market to test lower support and closed recover up slightly after both export cargo surveyor released improved export data. Daily chart formed a higher down bar candle closed near upper Bollinger band with the reading turned into suggesting a upside biased market development.
When to buy : buy at support or weakness with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20100927 1826 FKLI EOD Daily Chart Study.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : reversed upward, buyer returned for a rematch.
Support : 1470, 1458, 1445 level.
Resistant : 1485, 1500, 1530 level.
Comment :
FKLI recorded huge gain traded in increasing volume transaction in tandem with a positive regional market development doing 6 points premium compare to cash market. Daily chart shows that market rebounded after tested the middle Bollinger band support level formed a wide range up bar candle with the reading suggesting a side way range bound little upside biased testing resistant level near upper Bollinger band.
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.
20100927 1303 FKLI Mid Day Hourly Chart Study.
Bollinger band reading : upside biased.
MACD Histrogram : getting higher, buyer counter attack.
Support : 1470, 1458, 1445 level.
Resistant : 1485, 1500, 1530 level.
Comment :
Positive regional market development plus continue cash market heavy weight counters buying especially banking stock lead FKLI to rally higher in ultra high volume changed hand. Hourly chart shows market opened little higher and surged up breaking 2 resistant levels and closed at the high of the day. Daily chart formed a long lower shadow doji bar candle after price break below and closed right at the middle Bollinger band support level. Outlook switch into a side way range bound market reading testing support and resistant level. Reading wise, market is likely to trade upside biased testing previous high resistant level.
20100927 1252 FCPO Mid Day Hourly Chart Study.
Bollinger band reading : upside biased with possible correction.
MACD Histrogram : getting higher, buyer in control.
Support : 2720, 2700, 2670 level.
Resistant : 2750, 2770, 2800 level.
Comment :
Rallied higher soy oil futures price, concern on uncertain weather plus an announce improved export data lead FCPO to traded higher in moderate volume changed hand. Hourly chart wise, price opened gap up higher and traded side way range bound due to some profit taking activities and seems facing heavy resistant challenge near the 2750 level. Outlook wise, market is likely to trade upside biased with possible downward pullback correction as price stay above upper Bollinger band for sometimes now.
20100927 1106 Global Economic News.
China: Needs to balance growth, inflation
Promoting economic growth while managing inflation expectations pose a challenge to economic recovery, Chinese Vice-Premier Wang Qishan said yesterday. The global economic uncertainties and rising trade protectionism could take a toll on China’s economic growth, Wang was quoted saying. A flood of easy money following the government’s efforts to ward off the negative impact of the global economic crisis has fanned concerns about inflation and asset bubbles.(Financial Daily)
Japan: Yen likely to undermine company sentiment
The Bank of Japan’s Tankan survey will probably show a slowing pace of improvement in business confidence, adding to pressure on policy makers to counter gains in the Yen by injecting more cash into the economy. A quarterly index of sentiment at large manufacturers rose 6 points in September, the least since March 2009, according to the median forecast of 19 economists surveyed. (Bloomberg)
US: Treasury said to prepare unveiling of AIG exit, repayment plan
The US Treasury Department may unveil plans as early as this week to return American International Group Inc. to independence and recoup taxpayer funds from the insurer’s bailout, said three people with knowledge of the negotiations. The biggest part of that strategy is for Treasury to begin converting its USD49bn preferred stake into common stock for sales by the first half of next year, said the people, who declined to be identified. The timing of an announcement depends on the pace of negotiations between regulators and the New York-based insurer, the people said. (Bloomberg)
US: Manufacturing probably cooled this month
Manufacturing probably cooled in September and consumer spending stabilized last month, underscoring the Federal Reserve’s forecast of “modest” US growth in coming months, economists said before reports this week. The Institute for Supply Management’s factory index fell to 54.5 from 56.3 in August, according to the median of 63 forecasts in a survey ahead of the report due on 1 October. (Bloomberg)
Promoting economic growth while managing inflation expectations pose a challenge to economic recovery, Chinese Vice-Premier Wang Qishan said yesterday. The global economic uncertainties and rising trade protectionism could take a toll on China’s economic growth, Wang was quoted saying. A flood of easy money following the government’s efforts to ward off the negative impact of the global economic crisis has fanned concerns about inflation and asset bubbles.(Financial Daily)
Japan: Yen likely to undermine company sentiment
The Bank of Japan’s Tankan survey will probably show a slowing pace of improvement in business confidence, adding to pressure on policy makers to counter gains in the Yen by injecting more cash into the economy. A quarterly index of sentiment at large manufacturers rose 6 points in September, the least since March 2009, according to the median forecast of 19 economists surveyed. (Bloomberg)
US: Treasury said to prepare unveiling of AIG exit, repayment plan
The US Treasury Department may unveil plans as early as this week to return American International Group Inc. to independence and recoup taxpayer funds from the insurer’s bailout, said three people with knowledge of the negotiations. The biggest part of that strategy is for Treasury to begin converting its USD49bn preferred stake into common stock for sales by the first half of next year, said the people, who declined to be identified. The timing of an announcement depends on the pace of negotiations between regulators and the New York-based insurer, the people said. (Bloomberg)
US: Manufacturing probably cooled this month
Manufacturing probably cooled in September and consumer spending stabilized last month, underscoring the Federal Reserve’s forecast of “modest” US growth in coming months, economists said before reports this week. The Institute for Supply Management’s factory index fell to 54.5 from 56.3 in August, according to the median of 63 forecasts in a survey ahead of the report due on 1 October. (Bloomberg)
20100927 1105 Malaysia Corporate News.
Sarawak offers RM6bn for Bakun hydroelectric project
The Sarawak government has offered RM6bn to buy over the Bakun hydroelectric project from the federal government, said Sarawak Chief Minister, Tan Sri Abdul Taib Mahmud. Abdul Taib said the negotiations on the matter (the state buying over the project) were still ongoing and that a final decision had yet to be reached. According to him, the federal government had yet to put a price tag on the project, which is estimated to have incurred costs exceeding RM7.3bn. (Malaysian Reserve)
Sunway to launch RM1.1bn project in Singapore
Sunway Holdings Bhd will launch its third property project with a gross development value (GDV) of RM1.1bn in Singapore next week, said managing director Yau Kok Seng. Yau said the 1.92ha project, called Vacanza @ East, would be located at Jalan Senang, District 14, a freehold land near Pan Island Expressway. “We expect good response for the project,” he said after signing a joint-venture (JV) agreement with the Dasa Group of Sri Lanka here yesterday. He said profit margin in Singapore was usually 12%. The project will comprise eight blocks of 12-storey buildings, which will have 500 units. Sunway will also launch another project, with a GDV of SGD370m in the second half of 2011 in Singapore. It will comprise 17 blocks of five-storey residential development. The JV agreement signed yesterday was between Sunway unit SunwayMas Sdn Bhd and Dasa Group for a RM250m mixed development project in Bambalapitiya, Colombo. A JV company will be formed in Sri Lanka, with SunwayMas having a 65% stake and remainder taken up by Dasa Group. SunwayMas would fund its investment in the JV company through bank borrowings and internal funds. (StarBiz)
YTL Cement to buy out Perak-Hanjoong
YTL Cement Bhd has offered to buy a 35.16% stake in Perak-Hanjoong Simen SB from Gopeng Bhd for RM200m in a move that will see the company consolidating its position in the building material industry. YTL Cement said Gopeng had, on 24 Sept, accepted its offer to buy all 117.74m ordinary shares of RM1.00 each, with a formal sale and purchase agreement to be entered in due course. (Malaysian Reserve)
Karambunai denies plan to build resort casino
The surge of Karambunai Corp Bhd (KCB) shares since speculation arose it might get a casino licence as part of a proposed integrated resort (IR) at its existing resort in Sabah has created excitement in the market but the company last Friday poured cold water on any such move. “KCB has not up to date submitted any official proposal to the Malaysian government, nor has it penned any written documents with any other third parties in respect of any plan to build a casino in Karambunai,’’ the company told Bursa Malaysia. KCB said since it was a key player of tourism in Sabah, its general manger of the Nexus Karambunai Hotel was invited to be a member of Pemandu’s NKEA tourism lab. “During the lab sessions, KCB’s representative has been discussing and disclosing drawings in Karambunai with members of the private and public sectors as to the manner in which Karambunai as a member of the private sector may assist in this direction,” it explained. “Pemandu is free to use any drawings conducted in the lab sessions, but chooses drawings from Karambunai which has copyrights source & status. To KCB, these chosen drawings are merely meant as a plan. The recent public information simply mentions the existence of a IR in Kota Kinabalu Sabah and has not disclosed and named specifically KCB as a party. (StarBiz)
Azman Hashim to take MCM private
ACE market firm MCM Technologies Bhd’s major shareholder Tan Sri Azman Hashim has made an offer to take the company private at 13 sen a share, according to statement to Bursa Malaysia last Friday. The offer, to be satisfied entirely by cash, came in at 13% higher compared to MCM’s pre-suspension price of 11.5 sen. Azman, through Amcorp Group Bhd’s wholly owned unit Mezzanine Capital (M) Sdn Bhd controlled a 62.75% stake in MCM Tech. “The offeror has no intention to maintain the listing status of MCM Tech” assuming that he gets 75% control of the company, documents filed with the exchange on Friday showed. MCM Tech said it received the offer on Thursday and the announcement was posted on Bursa during the mid-day trading break. (StarBiz)
Proposal to resolve bondholders’ worry
A satisfactory proposal is expected be tabled in two week’s time to resolve concerns of bondholders of the Selangor water sector, especially in the area of compensation or assistance, a bondholder told StarBizWeek. An informal meeting was held last Friday between the representatives of the state and federal government and stakeholders in the state’s water sector, in particular bondholders. A bondholder said after the meeting: “We look forward to a positive outcome from this meeting in two week’s time. We believe this meeting today has been fruitful to enable the government to fully appreciate our plight.” He said with the recent downgrade on debt papers by Malaysian Rating Corp Bhd and RAM Ratings in the water sector it had triggered a higher risk weighting for the players. (StarBiz)
The Sarawak government has offered RM6bn to buy over the Bakun hydroelectric project from the federal government, said Sarawak Chief Minister, Tan Sri Abdul Taib Mahmud. Abdul Taib said the negotiations on the matter (the state buying over the project) were still ongoing and that a final decision had yet to be reached. According to him, the federal government had yet to put a price tag on the project, which is estimated to have incurred costs exceeding RM7.3bn. (Malaysian Reserve)
Sunway to launch RM1.1bn project in Singapore
Sunway Holdings Bhd will launch its third property project with a gross development value (GDV) of RM1.1bn in Singapore next week, said managing director Yau Kok Seng. Yau said the 1.92ha project, called Vacanza @ East, would be located at Jalan Senang, District 14, a freehold land near Pan Island Expressway. “We expect good response for the project,” he said after signing a joint-venture (JV) agreement with the Dasa Group of Sri Lanka here yesterday. He said profit margin in Singapore was usually 12%. The project will comprise eight blocks of 12-storey buildings, which will have 500 units. Sunway will also launch another project, with a GDV of SGD370m in the second half of 2011 in Singapore. It will comprise 17 blocks of five-storey residential development. The JV agreement signed yesterday was between Sunway unit SunwayMas Sdn Bhd and Dasa Group for a RM250m mixed development project in Bambalapitiya, Colombo. A JV company will be formed in Sri Lanka, with SunwayMas having a 65% stake and remainder taken up by Dasa Group. SunwayMas would fund its investment in the JV company through bank borrowings and internal funds. (StarBiz)
YTL Cement to buy out Perak-Hanjoong
YTL Cement Bhd has offered to buy a 35.16% stake in Perak-Hanjoong Simen SB from Gopeng Bhd for RM200m in a move that will see the company consolidating its position in the building material industry. YTL Cement said Gopeng had, on 24 Sept, accepted its offer to buy all 117.74m ordinary shares of RM1.00 each, with a formal sale and purchase agreement to be entered in due course. (Malaysian Reserve)
Karambunai denies plan to build resort casino
The surge of Karambunai Corp Bhd (KCB) shares since speculation arose it might get a casino licence as part of a proposed integrated resort (IR) at its existing resort in Sabah has created excitement in the market but the company last Friday poured cold water on any such move. “KCB has not up to date submitted any official proposal to the Malaysian government, nor has it penned any written documents with any other third parties in respect of any plan to build a casino in Karambunai,’’ the company told Bursa Malaysia. KCB said since it was a key player of tourism in Sabah, its general manger of the Nexus Karambunai Hotel was invited to be a member of Pemandu’s NKEA tourism lab. “During the lab sessions, KCB’s representative has been discussing and disclosing drawings in Karambunai with members of the private and public sectors as to the manner in which Karambunai as a member of the private sector may assist in this direction,” it explained. “Pemandu is free to use any drawings conducted in the lab sessions, but chooses drawings from Karambunai which has copyrights source & status. To KCB, these chosen drawings are merely meant as a plan. The recent public information simply mentions the existence of a IR in Kota Kinabalu Sabah and has not disclosed and named specifically KCB as a party. (StarBiz)
Azman Hashim to take MCM private
ACE market firm MCM Technologies Bhd’s major shareholder Tan Sri Azman Hashim has made an offer to take the company private at 13 sen a share, according to statement to Bursa Malaysia last Friday. The offer, to be satisfied entirely by cash, came in at 13% higher compared to MCM’s pre-suspension price of 11.5 sen. Azman, through Amcorp Group Bhd’s wholly owned unit Mezzanine Capital (M) Sdn Bhd controlled a 62.75% stake in MCM Tech. “The offeror has no intention to maintain the listing status of MCM Tech” assuming that he gets 75% control of the company, documents filed with the exchange on Friday showed. MCM Tech said it received the offer on Thursday and the announcement was posted on Bursa during the mid-day trading break. (StarBiz)
Proposal to resolve bondholders’ worry
A satisfactory proposal is expected be tabled in two week’s time to resolve concerns of bondholders of the Selangor water sector, especially in the area of compensation or assistance, a bondholder told StarBizWeek. An informal meeting was held last Friday between the representatives of the state and federal government and stakeholders in the state’s water sector, in particular bondholders. A bondholder said after the meeting: “We look forward to a positive outcome from this meeting in two week’s time. We believe this meeting today has been fruitful to enable the government to fully appreciate our plight.” He said with the recent downgrade on debt papers by Malaysian Rating Corp Bhd and RAM Ratings in the water sector it had triggered a higher risk weighting for the players. (StarBiz)
20100927 1100 Global Market News.
Oil trades near two-week high as risk appetite returns
SINGAPORE, Sept. 27 (Reuters) - Oil was steady, trading close to a two-week high near $77 reached earlier, as energy and commodities regained the favour of investors with a weaker dollar and resurfacing risk appetite.
"The dollar has set a weaker tone and that's going to be supportive for oil prices," said Mark Pervan, a senior commodities analyst at ANZ in Melbourne.
Soy at 13-month top; corn, wheat rise on weak dollar
SINGAPORE, Sept 27 (Reuters) - Chicago soy futures climbed to a 13-month top nearly 1 percent, while corn scaled a new 2-year peak as a weak dollar and tight supplies continued to buoy the grain market.
"We have seen strength across the agricultural commodity complex. Beans, corn and wheat are all trading higher with what we have seen in outside markets," said Luke Mathews, commodity strategist at Commonwealth Bank of Australia.
Asian stocks rally, dollar dips to five-month low
SINGAPORE, Sept 27 (Reuters) - Asian stocks rose to their highest in more than two years in response to optimism on the U.S. economy, while the dollar dipped to five-month lows against the euro.
"Wall Street's rise has provided a bit of a boost but gains on the U.S. data are mainly because the figures weren't quite as bad as expected, not that they were really good," said Takashi Ushio, head of the investment strategy division at Marusan Securities. "So gains on this alone will be limited."
OIL: Crude extends rally, reaches two-week high near $77
SINGAPORE, Sept. 27 (Reuters) - Oil climbed to near $77, the highest level since mid-September, extending last week's rally as energy and commodities regain the favour of investors with a weaker dollar and resurfacing risk appetite.
New orders for a wide range of long-lasting U.S. manufactured goods rose in August and business spending plans rebounded strongly, separate reports showed on Friday, the latest sign a sharp summer slowdown in the economy was abating.
COMMODITY MARKETS: Broad weekly gains; gold hits 7th record for Sept
NEW YORK, Sept 24 (Reuters) - Gold hit record highs on Friday for a seventh time this month and oil, metals and a wide number of crops finished the week with big gains after a falling dollar boosted prices across commodities.
"With the dollar getting definitely weaker with the pass of every session, gold has little work to do other than to head higher to compensate for dollar's slide," said Pradeep Unni, senior analyst at Richcomm Global Services.
GLOBAL MARKETS: Stocks surge, dollar slumps on data, Fed watch
NEW YORK, Sept 24 (Reuters) - Global stocks jumped but the dollar slid on Friday as economic data both raised hopes the recovery is improving and bolstered speculation the Federal Reserve will boost money supply to aid a struggling economy.
"You're finally in a place now that it's not because the equity equation is so attractive that you do something, it's actually because the safe side of the equation is so unattractive that you do something," Pride said.
PRECIOUS-Gold hits record, silver reaches 30-yr peak
LONDON, Sept 24 (Reuters) - Gold rallied to record highs in Europe on Friday, with spot prices knocking on the door of $1,300 an ounce, as expectations grew that further quantitative easing could lead to volatility in the currency markets.
Spot gold hit an all-time high of $1,298.25 an ounce and was bid at $1,297.70 an ounce at 0917 GMT, against $1,293.50 late in New York on Thursday.
FOREX-Dlr/yen spikes on intervention talk, euro jumps
LONDON, Sept 24 (Reuters) - The dollar spiked above 85.00 yen on Friday on talk of intervention by Japanese authorities keen to stem the yen's recent gains, but quickly retreated as doubts emerged about whether they had taken action.
That left investors nervous about more intervention and, with risk aversion hitting markets, traders said the Bank of Japan's task of weakening the yen was becoming even tougher.
Yen pares losses; intervention talk unconfirmed
LONDON, Sept 24 (Reuters) - The yen staged a partial recovery from losses prompted by unconfirmed talk of central bank intervention , while the euro rose on a stronger than expected German business sentiment survey.
"The price action certainly suggested that the Japanese intervened, but one can't be sure," said Kenneth Broux, markets strategist at Lloyds TSB Financial Markets.
SINGAPORE, Sept. 27 (Reuters) - Oil was steady, trading close to a two-week high near $77 reached earlier, as energy and commodities regained the favour of investors with a weaker dollar and resurfacing risk appetite.
"The dollar has set a weaker tone and that's going to be supportive for oil prices," said Mark Pervan, a senior commodities analyst at ANZ in Melbourne.
Soy at 13-month top; corn, wheat rise on weak dollar
SINGAPORE, Sept 27 (Reuters) - Chicago soy futures climbed to a 13-month top nearly 1 percent, while corn scaled a new 2-year peak as a weak dollar and tight supplies continued to buoy the grain market.
"We have seen strength across the agricultural commodity complex. Beans, corn and wheat are all trading higher with what we have seen in outside markets," said Luke Mathews, commodity strategist at Commonwealth Bank of Australia.
Asian stocks rally, dollar dips to five-month low
SINGAPORE, Sept 27 (Reuters) - Asian stocks rose to their highest in more than two years in response to optimism on the U.S. economy, while the dollar dipped to five-month lows against the euro.
"Wall Street's rise has provided a bit of a boost but gains on the U.S. data are mainly because the figures weren't quite as bad as expected, not that they were really good," said Takashi Ushio, head of the investment strategy division at Marusan Securities. "So gains on this alone will be limited."
OIL: Crude extends rally, reaches two-week high near $77
SINGAPORE, Sept. 27 (Reuters) - Oil climbed to near $77, the highest level since mid-September, extending last week's rally as energy and commodities regain the favour of investors with a weaker dollar and resurfacing risk appetite.
New orders for a wide range of long-lasting U.S. manufactured goods rose in August and business spending plans rebounded strongly, separate reports showed on Friday, the latest sign a sharp summer slowdown in the economy was abating.
COMMODITY MARKETS: Broad weekly gains; gold hits 7th record for Sept
NEW YORK, Sept 24 (Reuters) - Gold hit record highs on Friday for a seventh time this month and oil, metals and a wide number of crops finished the week with big gains after a falling dollar boosted prices across commodities.
"With the dollar getting definitely weaker with the pass of every session, gold has little work to do other than to head higher to compensate for dollar's slide," said Pradeep Unni, senior analyst at Richcomm Global Services.
GLOBAL MARKETS: Stocks surge, dollar slumps on data, Fed watch
NEW YORK, Sept 24 (Reuters) - Global stocks jumped but the dollar slid on Friday as economic data both raised hopes the recovery is improving and bolstered speculation the Federal Reserve will boost money supply to aid a struggling economy.
"You're finally in a place now that it's not because the equity equation is so attractive that you do something, it's actually because the safe side of the equation is so unattractive that you do something," Pride said.
PRECIOUS-Gold hits record, silver reaches 30-yr peak
LONDON, Sept 24 (Reuters) - Gold rallied to record highs in Europe on Friday, with spot prices knocking on the door of $1,300 an ounce, as expectations grew that further quantitative easing could lead to volatility in the currency markets.
Spot gold hit an all-time high of $1,298.25 an ounce and was bid at $1,297.70 an ounce at 0917 GMT, against $1,293.50 late in New York on Thursday.
FOREX-Dlr/yen spikes on intervention talk, euro jumps
LONDON, Sept 24 (Reuters) - The dollar spiked above 85.00 yen on Friday on talk of intervention by Japanese authorities keen to stem the yen's recent gains, but quickly retreated as doubts emerged about whether they had taken action.
That left investors nervous about more intervention and, with risk aversion hitting markets, traders said the Bank of Japan's task of weakening the yen was becoming even tougher.
Yen pares losses; intervention talk unconfirmed
LONDON, Sept 24 (Reuters) - The yen staged a partial recovery from losses prompted by unconfirmed talk of central bank intervention , while the euro rose on a stronger than expected German business sentiment survey.
"The price action certainly suggested that the Japanese intervened, but one can't be sure," said Kenneth Broux, markets strategist at Lloyds TSB Financial Markets.
20100927 1056 Soy Oil & Palm Oil Related News.
SGS CPO Export up 15% to 1,080,597 tonnes for the period of 1~25 Sep 2010.
ITS CPO Export up 17% to 1,162,573 tonnes for the period of 1~25 Sep 2010.
U.S. soy product futures closed sharply higher with soybeans on technical buying and robust demand. U.S. soy export sales, particularly to China, have been strong lately and continue to support gains, traders say. Dryness at planting time in Brazil, the world's no. 2 soy producer after the U.S., added support. Weakness in the greenback helped fuel rallies across the grains and soy complex. The soft greenback makes U.S. soy look even more attractive to foreign buyers and brought speculative money into the markets, an analyst says. Commodity funds bought an estimated 2,000 soymeal contracts and 3,000 soyoil contracts at CBOT. CBOT Dec soymeal closed up $7.50, or 2.4%, at $317 per short ton. CBOT Dec soyoil climbed 0.99 cent, or 2.3%, to 44.89 cents per pound.(Source: CME)
Global Soybean Prices Likely To Rise By Dec-Jan - Expert (Source:CME)
Global soybean prices are likely to rise to $11.50 to $12 per bushel by December-January because of supply disruptions in South America and rising demand in China, said global vegetable oil expert Dorab Mistry. "For some time, soybean prices may remain at double digits. Current prices are also not hurting the demand," Mistry said. There is plenty of focus on South America's crop prospects because of questionable soil moisture for early seedings in Mato Grosso--Brazil's top soy-producing state. Brazil is the world's second-largest soy producer after United States. According to Cropcast Weather Services, the soybean crop outlook may not be favorable because of dry weather seen in these areas of Brazil over the past few months. "If Brazil doesn't get rains in December, soybean crop may be hurt," Mistry said.
Higher imports by China, the largest importer of soybean, is going to support global prices, he said, adding that a widening price gap between sunflower oil and soyoil is also boosting soybean prices. The price difference between sunflower oil and soyoil is $150 per ton. Mistry reiterated his earlier 2010 palm oil production estimate for Malaysia of 17.2 million tons, but said the number may be revised in October. The Southeast Asian country produced 17.6 million tons last year.
Overseas demand hopes boost palm; export data eyed
KUALA LUMPUR, Sept 24 (Reuters) - Global vegetable oil futures rose as traders took positions hoping for a revival in overseas demand ahead of a key industry conference.
"Trade volume picked up in the afternoon trading session of palm oil, it could be related to the international oil conference in Mumbai," said a trader in Kuala Lumpur.
Indonesia ups Oct CPO export tax, cuts cocoa tax
JAKARTA, Sept 24 (Reuters) - Indonesia will set its crude palm oil (CPO) export tax at 7.5 percent in October, up from 6 percent in September, the trade ministry said on Friday.
Higher export tax would mean Indonesia's palm oil products will be more expensive than rival Malaysia, potentially slowing exports in October from the world's top palm oil producer.
ITS CPO Export up 17% to 1,162,573 tonnes for the period of 1~25 Sep 2010.
U.S. soy product futures closed sharply higher with soybeans on technical buying and robust demand. U.S. soy export sales, particularly to China, have been strong lately and continue to support gains, traders say. Dryness at planting time in Brazil, the world's no. 2 soy producer after the U.S., added support. Weakness in the greenback helped fuel rallies across the grains and soy complex. The soft greenback makes U.S. soy look even more attractive to foreign buyers and brought speculative money into the markets, an analyst says. Commodity funds bought an estimated 2,000 soymeal contracts and 3,000 soyoil contracts at CBOT. CBOT Dec soymeal closed up $7.50, or 2.4%, at $317 per short ton. CBOT Dec soyoil climbed 0.99 cent, or 2.3%, to 44.89 cents per pound.(Source: CME)
Global Soybean Prices Likely To Rise By Dec-Jan - Expert (Source:CME)
Global soybean prices are likely to rise to $11.50 to $12 per bushel by December-January because of supply disruptions in South America and rising demand in China, said global vegetable oil expert Dorab Mistry. "For some time, soybean prices may remain at double digits. Current prices are also not hurting the demand," Mistry said. There is plenty of focus on South America's crop prospects because of questionable soil moisture for early seedings in Mato Grosso--Brazil's top soy-producing state. Brazil is the world's second-largest soy producer after United States. According to Cropcast Weather Services, the soybean crop outlook may not be favorable because of dry weather seen in these areas of Brazil over the past few months. "If Brazil doesn't get rains in December, soybean crop may be hurt," Mistry said.
Higher imports by China, the largest importer of soybean, is going to support global prices, he said, adding that a widening price gap between sunflower oil and soyoil is also boosting soybean prices. The price difference between sunflower oil and soyoil is $150 per ton. Mistry reiterated his earlier 2010 palm oil production estimate for Malaysia of 17.2 million tons, but said the number may be revised in October. The Southeast Asian country produced 17.6 million tons last year.
Overseas demand hopes boost palm; export data eyed
KUALA LUMPUR, Sept 24 (Reuters) - Global vegetable oil futures rose as traders took positions hoping for a revival in overseas demand ahead of a key industry conference.
"Trade volume picked up in the afternoon trading session of palm oil, it could be related to the international oil conference in Mumbai," said a trader in Kuala Lumpur.
Indonesia ups Oct CPO export tax, cuts cocoa tax
JAKARTA, Sept 24 (Reuters) - Indonesia will set its crude palm oil (CPO) export tax at 7.5 percent in October, up from 6 percent in September, the trade ministry said on Friday.
Higher export tax would mean Indonesia's palm oil products will be more expensive than rival Malaysia, potentially slowing exports in October from the world's top palm oil producer.
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