20101001 1435 FKLI Mid Day Hourly Chart Study.

FKLI last looked : 1468.5, changed : +8 points, volume : low.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : weakening, buyer taking partial profit.
Support : 1458, 1445, 1425 level.
Resistant : 1470, 1485, 1500 level.
Comment :
5 points tight range market FKLI edge up higher in slow volume transaction despite a declined overnight US market. Hourly chart wise, market opened gap higher and tested resistant level followed by profit taking activities pressed to trade off the high with the reading suggesting a side way range bound little upside biased market.

20101001 1431 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2719, changed : -11 points, volume : moderate.
Bollinger band reading : side way range bound.
MACD Histrogram : getting weaker, buyer seller in battle.
Support : 2700, 2670, 2650  level.
Resistant : 2720, 2750, 2770 level.
Comment :
FCPO eased lower in moderate volume transaction changed hand after soy oil futures price traded flat plus a long China market holidays. Hourly chart wise, market opened little higher and tested 2750 resistant level and retreat downward to touched and closed below 2720 support level with the reading suggesting a side way range bound market development.

20101001 1057 Global Economics News.

Japan: Factory production unexpectedly fell in August
Japan’s industrial production unexpectedly fell in August, adding to concerns the nation’s export-led recovery is slowing. Factory output decreased 0.3% from July, the third monthly decline, the Trade Ministry said in Tokyo. The median estimate of 26 economists surveyed by Bloomberg News was for a 1.1% gain. (Bloomberg)

Taiwan: Raises key rate, seeks to prevent property speculation
Taiwan increased its benchmark interest rate for the second time this year and said it will try to prevent realestate speculation after a jump in home prices fueled concern the economic recovery may stoke a property bubble. Central bank Governor Perng Fai-nan and his board raised the rate by 0.125 percentage point to 1.5%. (Bloomberg)

China: US Yuan legislation will hurt world economic growth
China said a measure passed by the US House of Representatives aimed at pushing up the value of the yuan will hurt the global economy if it becomes law. The House of Representatives voted for a measure that would let domestic companies petition for duties on imports from China to compensate for the effect of a weak yuan. China said the legislation would do nothing to cut the US trade deficit and only risk harming growth. (Bloomberg)

EU: Ireland puts EUR34bn price on Anglo Irish
Ireland’s central bank has put a EUR34bn price on bailing out stricken Anglo Irish Bank under a worst-case scenario and said Allied Irish Banks needs to raise an additional EUR3bn by end of the year. Ireland has already injected nearly EUR23bn into Anglo Irish Bank and insisted the Anglo bill which was expected to propel government debt to over 100% of GDP, would be manageable because it would be spread out over at least a decade. (StarBiz)

EU: September inflation quickens on energy costs
European inflation accelerated to the fastest in almost two years in September, led by higher energy costs. Euro-area consumer prices rose 1.8% from a year earlier after increasing 1.6% in August, the European Union statistics office in Luxembourg said. That’s the fastest pace since November 2008 and in line with the median forecast of 33 economists surveyed by Bloomberg News. (Bloomberg)

US: Business activity picks up, claims fall
Business activity in the US unexpectedly accelerated and fewer workers filed claims for jobless benefits, easing concern the world’s largest economy is retrenching further. The Institute for Supply Management-Chicago Inc. said its business barometer climbed to 60.4 in September. Readings greater than 50 for the ISM-Chicago index signal expansion. The median forecast of 57 economists surveyed by Bloomberg News projected the gauge would fall to 55.5. The number of applicants for unemployment insurance payments fell more than projected last week, another report showed. (Bloomberg)

US: Economy expands at a slow 1.7% in Q2
The US economy grew at a 1.7% annual rate in the 2Q, marking the start of a slowdown in growth that has concerned the Federal Reserve. The revised increase in gross domestic product was more than the median forecast of economists surveyed by Bloomberg News and compares with a 1.6% estimate issued last month, figures from the Commerce Department showed. The world’s largest economy grew 3.7% in the 1Q. (StarBiz)    

20101001 1056 Malaysia Corporate News.

Samy Vellu to step down as MIC president in January
MIC’s longest serving president, Datuk Seri S. Samy Vellu, said he is stepping down in January to make way for his deputy Senator Datuk G. Palanivel. “I’m officially announcing my decision to step down and pass the leadership to my deputy in January next year,” he told reporters after chairing the party’s Central Working Committee here yesterday. The specific date would be announced later, he said, adding that the CWC was informed earlier. Palanivel would become acting president, in line with the party’s constitution, Samy Vellu said. “There will not be a presidential election. The election is only due if I step down one or two months before the end of my term as president,” he said. Samy Vellu, 74, came to the party's helm in 1979 after Tan Sri V. Manickavasagam died and has held the position for 11 consecutive terms. He was the Works Minister of Malaysia and the longest serving minister in the Cabinet until he lost his parliamentary seat in the 2008 general elections. (The Star)

Ahmad Zaki wins university project
The Government has awarded a contract to build the International Islamic Universiti Malaysia Teaching Hospital in Kuantan, Pahang, to Ahmad Zaki Resources. The company said project details including its value and concession period will be disclosed once the concession agreement is finalized. (BT)

Equator’s major owners sell down shares
Two directors and a major shareholder of Ace Market-listed Equator Life Science sold large blocks of shares and ceased to be substantial shareholders of the company. At the same time, its managing director also sold a bulk of his interest in the biotechnology company. The reason for the sale by the directors and major shareholder was not stated. It worth noting that the disposals were not forced selling by financial institutions. The massive share disposal implies the emergence of new major shareholders and possible change of strategic direction in the loss making biotechnology firm. (Financial Daily)

Shahril named Prasarana group MD
Syarikat Prasarana Negara Bhd announced yesterday the appointment of Shahril Mokhtar, 38, as its group managing director effective today. He succeeds Datuk Idrose Mohamed, who finished his two-year contract yesterday. Prasarana said in a statement that Shahril will serve a two-year term. This confirmed an earlier Business Times report. When contacted, Shahril said his immediate task was to continue improving the service levels of public transport systems under the group and ensure projects were completed on time. (BT)

RHB Capital acquires stake in RHB Insurance for RM44.5m
RHB Capital has entered into a share sale agreement with Nissay Dowa General Insurance Co Ltd to acquire 15.2% of the issued and paid-up share capital of RHB Insurance for RM44.5m cash. In a filing with Bursa Malaysia, RHB said it entailed the acquisition of 15.2m ordinary shares of RM1 each in RHB Insurance. Upon completion of the exercise, RHB Capital’s stake in RHB Insurance will increase from the current 79.5% to 94.7%. It said RHB Capital would use its internal funds to finance the proposed acquisition and no liabilities, including contingent liabilities and guarantees, to be assumed by RHB Capital pursuant to the acquisition. (Starbiz)

KHSB unit to sell 17 plots in Pulau Indah for RM57.1m
Kumpulan Hartanah Selangor (KHSB) said its unit, Central Spectrum (M) SB, yesterday agreed to sell 17 plots of industrial land measuring 27.2ha in Pulau Indah, Selangor, to Batam Heights SB for RM57.1m. Proceeds will be used for working capital. The sale is also expected to accelerate the development of Selangor Halal Hub.(BT)

PBA raises water tariff by 27% for trade consumers
State-owned public listed Perbadanan Bekalan Air Pulau Pinang (PBAPP) announced an 27% increase in water tariff for trade consumers who account for 60% of its revenue. The increase comes on the heels of the announcement made by PBAPP chairman, Chief Minister Lim Guan Eng last week of a water conservation surcharge to be imposed on domestic users above 35000 litres per month. The last water tariff review for trade and domestic users was on 1 Jan 2001. (Financial Daily)

Khazanah no longer substantial shareholder in DRB-Hicom
Khazanah Nasional disposed of 1.13m shares in DRB-Hicom Bhd on 23 Sept, and ceased to be the substantial shareholder of latter. A filing with Bursa Malaysia yesterday showed that Khazanah’s shareholdings in DRBHicom had fallen to 4.97% after the exercise. (Starbiz) 

20101001 1051 Global Market News.

OIL: Crude little changed near 7-week high of $80
TOKYO, Oct 1 (Reuters) - U.S. crude futures stood little changed near a seven-month high on Friday, after posting a rise of almost 3 percent a day earlier as lower U.S. jobless claims stoked optimism for economic recovery in the world's top oil consumer.
In Ecuador, an OPEC member country which typically exports around 300,000 barrels per day of crude, police and military personnel went on strike to protest cuts in public sector benefits and pay, thrusting the country into political chaos.

GLOBAL MARKETS: Euro at 5-month high, stocks slip at quarter end
NEW YORK, Sept 30 (Reuters) - Global stocks slipped and the euro hit another five-month high on Thursday as improving data curbed expectations the Federal Reserve would increase money supply to spur economic growth and lift asset prices.
"If (future) data and earnings confirm that we are finally out of fears of a double-dip (recession), October may be the month for the S&P to break above trading range and reach the highs that we saw in April," said John Canally, an economist and investment strategist at LPL Financial in Boston.

Bank of America cuts proprietary trading desk jobs
NEW YORK, Sept 29 (Reuters) - Bank of America Corp  is cutting about 20 to 30 employees who traded for the bank's account as a result of U.S. rule changes that require banks to trim their risk-taking businesses, a person familiar with the move said.
The largest U.S. bank by assets is making the cuts, which amount to about a third of its proprietary trading staff, as a direct consequence of the "Volcker Rule," the person said.

PRECIOUS-Gold hits record high as investors eye U.S. policy
LONDON, Sept 30 (Reuters) - Gold rose to a record high in Europe on Thursday and was on track for an eighth consecutive quarterly gain as the dollar fell amid concerns over the prospect of further U.S. quantitative easing.
Strength in gold prices also helped lift silver to its highest level since 1980, palladium to a 2-1/2 year high and platinum to its strongest since May.

FOREX-Euro hits 5-mth high vs dollar after ECB tender
LONDON, Sept 30 (Reuters) - The euro hit a five-month high  against the dollar on Thursday after banks borrowed less than expected at a European Central Bank tender, reversing earlier losses on concerns about Irish fiscal and banking problems.
Euro gains helped push the dollar index to an eight-month low against a basket of currencies, while the yen rose broadly on reported exporter demand for yen on the last day of Japan's fiscal half-year. This sparked concerns Japan may step in again to curb gains in its currency.

Euro hits 5-month high; world stocks flat
LONDON, Sept 30 (Reuters) - The euro rose to a five-month high against the dollar, helped by signs that banks are becoming less dependent on official support and a slight easing in concerns over Ireland and Spain.
"The meltdown of Anglo Irish (Bank) has been a considerable shock for Ireland, but with a credible rescue plan, it limits the risk of negative surprises going forward, and that in a sense is bringing relief to the market," said Philippe Waechter, head of economic research at Natixis Asset Management.

20101001 1049 Soy Oil & Palm Oil Related News.

Soy product futures ended mixed, with soyoil climbing on a bullish fundamental profile. Strong underlying export demand, fears of tighter global vegoil supplies and spillover strength from crude oil futures served as catalysts to support prices, analysts said. Soymeal futures grinded lower, succumbing to pressure from adjustments in the oil/meal spread relationship, traders said. The issuing of deliverable receipts by a large commercial firm added fundamental pressure to weigh on prices as well. December soyoil settled 0.65 cents or 1.4% higher at 45.09 cents per pound. December soymeal ended $0.60 or 0.2% lower at $306.90 per short ton. (Source: CME)

India 2010 Soybean Output Likely Up 4.2% At 10.13 Million Tons - Trade (Source : CME)
India's soybean output in 2010 is likely to rise 4.2% to 10.13 million metric tons as good rains are expected to increase the yield, the Soybean Processors Association of India said Thursday. The country produced about 9.72 million tons of soybean in 2009, it said in a statement. The soybean yield is likely to rise to 1,089 kilograms per hectare in 2010 from 1,006 kg/hectare last year, the trade body said. India's monsoon rains have been 2% above average so far this season, according to the state-run India Meteorological Department. The June-September monsoon season brings about 70% of India's annual rains and is crucial for summer-sown crops.
Soybean output in Madhya Pradesh, the biggest producing state, is likely to rise 11% to 6.1 million tons due to a rise in area under cultivation and a higher yield. Total area under soybean in Madhya Pradesh is estimated to have risen to 5.5 million hectares in 2010 from 5.3 million hectares last year, the trade body said. In Maharashtra, the second biggest producer, output is likely to fall to 2.8 million tons from about 3 million tons last year, it added. Higher output estimates may increase the exports of soymeal and pressurize local prices, said Mehul Agrawal, analyst with Sharekhan Commodities. The country's soymeal exports had been falling over the past few months as local prices were higher than international rates. However, exports are improving as global prices have now risen sharper than local prices.
Total soymeal exports in the marketing year starting Oct. 1 are likely to touch 4 million tons, Agrawal said. India is estimated to export about 2.5 million tons of soymeal in 2009-10, according to industry officials.

China May Lack Enough Edible Oil Stocks To Curb Prices -Report (Source: CME)
China may lack sufficient edible-oil reserves to effectively curb rising prices despite an imminent state auction, the Securities Times reported Thursday. China's grain authorities Wednesday announced an unusual state auction of edible oils, without disclosing details including the date, oil types and offer volumes. The authorities said the intent was to ensure supply and stabilize prices. Sharply rising prices have been of growing concern to the government, and Wednesday's announcement marked the addition of one more food category to a range of agricultural commodities that are testing the ability of China's vaunted agricultural reserves to defend the country's market stability and food security. Citing unnamed industry insiders, the Securities Times said the edible oils to be auctioned were likely soyoil and rapeseed oil.
However, the newspaper said, private-sector estimates place national reserves of such vegetable oils far short of domestic demand, limiting the extent to which the authorities will be able to use auctions to stabilize the market. China does not officially disclose its agriculture reserve levels. The Securities Times report was also carried Thursday on the website of the China Grains Network, the research arm of state grains stockpiler China Grain Reserves Corp., also called Sinograin Corp. "The dimensions of such an auction are likely to be limited, which makes it hard to alter the fundamental market situation," the newspaper said. The auction, China's first this year, is more likely aimed at clearing old edible-oil stocks dating from 2008, as the shelf life of such stocks are near expiry and warehouses are running out of space, it said.
Though it didn't venture to identify likely offer volumes, crucial for gauging the strength of the government's ability to control prices, the Times suggested that state reserves of such edible oils were too small to influence the market. China's rapeseed oil reserves were around 1.4 million tons, the newspaper said. If true, such reserves would be about a third of domestic rapeseed oil consumption of around 4.5 million a year, according to September data by the state-backed think tank China National Grains and Oils Information Center. The newspaper also said that "a conservative estimate of state soyoil reserves is 1.4 million tons or more, a small percentage of domestic demand." The CNGOIC estimated current Chinese soyoil consumption at around 10 million tons a year. The Securities Times said market-supportive rapeseed purchases, which have all but stopped this year, reached 5.08 million tons.
Among the state-linked buyers were Sinograin with 2.3 million tons, Cofco Ltd. with 600,000 tons, Chinatex Corp. with 180,000 tons, and local grain agencies with 1 million tons, the newspaper said. It didn't identify the buyer or buyers of the other 1 million tons. Dwindling global stockpiles and surging domestic demand have spurred sharp gains in food prices in China and abroad this year, but given the size of available reserves, edible oil prices are expected to keep rising, it said. The most-active palm oil futures on the Dalian Commodity Exchange have risen by 18% and soyoil futures by 15% in the last three months, outstripping a 9% increase in bellwether soybean futures. The state has also been auctioning wheat, corn and rice weekly to hold down prices.

Palm oil in 1st quarterly gain, weather lifts prices
KUALA LUMPUR/JAKARTA, Sept 30 (Reuters) - Malaysian palm oil rose 1.19 percent, booking its first quarterly gain in a year as a global economic recovery fueled demand and erratic weather patterns meant an uncertain grain crop outlook worldwide.
"Palm oil is supported by strong export figures and short-covering by Chinese traders ahead of the holiday," said a trader at a foreign brokerage firm in Kuala Lumpur.

Growing U.S. soyoil exports fueled by China demand
CHICAGO, Sept 29 (Reuters) - U.S. soyoil exports will stay hot even after China releases state stocks to stabilize local prices, bolstered by demand as Beijing's boycott of supplies from Argentina lingers.
China's State Grain Administration said on Wednesday it will sell vegetable oils from its state reserves to bolster supplies and stabilize prices, which were currently below the cost of U.S. imports. 

20100930 1848 FKLI EOD Daily Chart Study.

FKLI closed : 1464.5, changed : +5.5 points, volume : low.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : reversed upward, buyer seems eager to stay.
Support : 1458, 1445, 1425 level.
Resistant : 1470, 1485, 1500 level.
Comment :
FKLI expired recorded gain in low volume participation rebounding from the middle Bollinger band level. Daily chart formed a small body up bar candle traded side way range bound along middle Bollinger band level with the reading suggesting a side way range bound little upside biased market development.
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.

20100930 1846 FCPO EOD Daily Chart Study.

FCPO closed : 2730, changed : +32 points, volume : high.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : getting weaker, buyer reducing exposure.
Support : 2720, 2700, 2670, 2650 level.
Resistant : 2750, 2770, 2800 level.
Comment :
FCPO recovered most of  yesterday losses recorded gain in increasing volume transaction after both ITS and SGS export cargo surveyor released improved month to month export data. Daily chart shows that market still traded range bound within a narrowing Bollinger band indicates that market is still in consolidation mode  with the reading suggesting a correction range bound 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.

20100930 1545 Local & Global Market News.

Malaysia: Ringgit hits new high against the greenback
The Ringgit rose to a fresh 13-year high against the ailing USD yesterday, tracking gains by other regional currencies, as the prospect of stronger economic growth fuelled speculation of further inflows from overseas funds. The Ringgit was traded at 3.0846 against the greenback yesterday, the strongest level since October 1997. (Starbiz)

Taiwan: To weigh interest rate amid property threat
Taiwan’s central bank may discuss raising its benchmark interest rate tomorrow for the second time this year after the island’s economic recovery and the threat of a property bubble added to the case for higher borrowing costs. Governor Perng Fai-nan will increase the benchmark by 0.125 percentage point to 1.5% after the policy board meets, according to 11 of 14 economists surveyed. (Bloomberg)

China: Manufacturing accelerates for a second month
Manufacturing accelerated in China for a second straight month in September, adding to signs the fastestgrowing major economy is stabilizing after policy makers curbed lending in an effort to avert asset bubbles. The purchasing managers’ index released rose to 52.9, the highest level in five months, from 51.9 in August. The data are seasonally adjusted and readings above 50 indicate an expansion. (Bloomberg)

Spain: Credit rating set for Moody’s cut on economy
Spain’s top AAA credit rating, held since 2001, probably will be cut one level by Moody’s Investors Service as the Euro region’s fourth-biggest economy struggles to grow, according to investors managing about USD700bn. Five out of eight money managers surveyed predicted a one-step reduction to AA1, with the rest forecasting a two-level cut to AA2. The decision may come this week after Moody’s put Spain’s debt on review for a possible downgrade on 30 June, saying it would conclude the analysis within three months. (Bloomberg)

EU: European economic confidence unexpectedly improves
European confidence in the economic outlook unexpectedly improved this month as executives and consumers weathered tougher government budget cuts by countries struggling to convince investors that they won’t need external aid. An index of executive and consumer sentiment in the 16 euro nations rose to 103.2, the highest since January 2008, from a revised 102.3 in August, the European Commission in Brussels said. (Bloomberg)

US: Fed presidents far from unanimous on need for further easing
Regional Federal Reserve presidents showed they’re far from unanimous on whether the central bank should try to boost flagging US growth with a second round of unconventional monetary easing. The range of views shows that if Chairman Ben S. Bernanke aims to restart Treasury purchases in November, as some economists project, he may have to do so over the objections of several central bank officials. (Bloomberg)

20100930 1544 Malaysia Corporate News.

AZRB likely to bag RM300m hospital job
AZRB has emerged as the frontrunner to win a RM300m job to build a 300-bed hospital in Kuantan, Pahang for Universiti Islam Antarabangsa, sources said. It is understood that the authorities are now at the final stage of awarding the project and the Terengganu-based construction outfit is likely to bag the job. (Financial Daily)

 Iskandar may get new CEO
Datuk Syed Mohamed Ibrahim, the property head at DRB-HICOM, is slated to join Iskandar Investment as its CEO, replacing Arlida Ariff who currently holds the post. Arlida's contract expires at the end of this year and it is believed that her term will not be extended, sources said. (BT)

Maybank sees bigger foreign contribution
Maybank expects its international operations from countries such as Singapore and Indonesia to contribute 40% to the group’s net profit by 2015. For the financial year ended 30 June, 2010, international operations contributed 21% to the group’s net profit. (StarBiz)

Sumitomo ventures into Sarawak aluminium smelter project
Sumitomo Corp will take part in an aluminium smelting project in Sarawak via its proposed acquisition of a 20% stake in Press Metal’s unit Press Metal Sarawak SB. The capacity of the plant is 120,000 tonnes per year and will be completed by end of 2010. Total investment is USD300m. (Financial Daily)

MAS sees new aircraft delivery next month
MAS is expected to take delivery of 35 Boeing 737-800 aircraft next month. Its senior general manager in sales and marketing Datuk Bernard Francis said some of the aircraft would be based at KLIA and MAS would increase flights to South Asia, Asean and China. (StarBiz)

Tanjung unit gets extension
Tanjung Offshore wholly-owned subsidiary, Tanjung Offshore Services SB has been approved and awarded a contract extension by Petrofac (Malaysia PM-304) Ltd that is valued at RM110m. The contract extension was for the provision and supply of mobile offshore production unit for Cendor Field, Block PM-304 for an extended period effective 24 Sept to the second quarter of 2013. (StarBiz)

Kimlun awarded RM70m project
Kimlun Corp wholly-owned subsidiary Kimlun SB was awarded a RM70m contract for the construction of main building works for Marlborough College East in Mukim Pulai, Iskandar Malaysia. The contract was awarded by MRCB’s wholly-owned unit, MRCB Engineering SB. (StarBiz) 

20100930 1530 Global Market News.

Dollar stuck near lows, Asian stocks slip
HONG KONG, Sept 30 (Reuters) - The dollar was stuck near an eight-month low, ground down by expectations of more Federal Reserve easing, while Asian stocks pulled back slightly from a two-year high as markets took a breather from September's strong rally.
The dollar is down 8.5 percent this quarter against a basket of world currencies, its worst quarter in over eight years, as a sluggish economy and stubbornly high unemployment levels have fueled expectations of another round of asset buying by the Fed.

OIL: Crude steady after 2 pct gain on EIA data
TOKYO, Sept 30 (Reuters) - U.S. crude futures stood little changed on Thursday to hold a gain of more than 2 percent from a day earlier, helped by data showing a drop in U.S. crude and product inventories.
A tightening in product stockpiles -- just as U.S. refiners were stepping up seasonal maintenance and with more than a month to go before the hurricane season winds down -- prompted traders to bid up prices.

GLOBAL MARKETS: Dollar sags as monetary stimulus seen in pipeline
NEW YORK, Sept 29 (Reuters) - Rising expectations that central banks will step up monetary stimulus to support fragile economies drove the dollar to a five-month low against the euro on Wednesday and helped gold extend its record-breaking rally.
"The dollar currently is in a 'lose-lose' situation where if U.S. data is disappointing, it increases the prospects of Fed easing, and that weighs on U.S. rates and the dollar," said Brian Dolan, chief currency strategy at Forex.com in Bedminster, New Jersey.

PRECIOUS-Gold hits record highs in anticipation of more QE
LONDON, Sept 29 (Reuters) - Gold prices rallied to record highs in Europe on Wednesday on fears moves by the Federal Reserve to tackle the sluggish U.S. economy would undermine the dollar, boosting investment in bullion as an alternative asset.
Spot gold hit a record $1,313.20 and was bid at $1,308.60 an ounce at 0953 GMT, against $1,307.40 late in New York on Wednesday. U.S. gold futures for December delivery rose $1.80 an ounce to $1,310.10.

FOREX-Dollar toils on rising expectations of more Fed easing
LONDON, Sept 29 (Reuters) - The ailing dollar fell more on Wednesday as sliding U.S. Treasury yields and below-forecast U.S. data fuelled expectations that U.S. monetary policy would need to be further relaxed.
Mounting speculation that the U.S. Federal Reserve could embark on a second round of quantitative easing (QE) knocked the dollar to a five-month low against the euro and a two-year trough against the Australian dollar.

Dollar hits lowest since Jan, bracing for QE
LONDON, Sept 29 (Reuters) - The U.S. dollar extended its steep decline on Wednesday, clocking losses of more than five percent for the month, as investors prepared for the Federal Reserve to print more money to lift the weakening U.S. economy.
Mounting speculation the Fed will embark on a second round of quantitative easing -- expanding its balance sheet to buy bonds and others assets -- to prevent a double-dip U.S. recession sent the dollar to a five-month low against the euro and a two-year trough against the Australian dollar.

Asian stocks at 2-yr high, dollar on defensive
HONG KONG, Sept 29 (Reuters) - Asian stocks hit a two-year high and the dollar was stuck near a seven-month low after poor U.S. data reinforced expectations the U.S. Federal Reserve will take more action to help the struggling economy.
"The Nikkei's rising on the slightly weaker yen, and there's also probably some window-dressing ahead of the end of the first half of the business year," said Norihiro Fujito, general manager at Mitsubishi UFJ Morgan Stanley Securities.

20100930 1529 Soy Oil & Palm Oil Related News.

ITS export up 21.3% to 1,479,602 tonnes for the period of 1~30 Sep 2010
SGS export up 30% to 1,479,138 tonnes for the period of 1~30 Sep 2010

Soy product futures ended lower, stumbling in unison with soybeans. Soyoil futures came under additional pressure from news China would begin selling edible oils from its reserves to cool rising domestic prices, analysts said. Soymeal followed beans lower, with traders becoming less fearful of tight nearby supplies, as the availability of soybeans for crushing improves on the expansion of the fall harvest, analysts said. December soyoil settled 0.49 cents or 1.1% lower at 44.44 cents per pound. December soymeal ended $1.00 or 0.3% lower at $307.50 per short ton.(Source: CME)

China To Hold First 2010 Edible Oil Reserve Auction (Source: CME)
Chinese grain authorities will auction edible oil reserves to ensure sufficient supply to the market and stabilize prices, said the state-backed China National Grain and Oil Trade Center. Edible oils like palm oil and soyoil have steadily rallied on the back of dwindling global stockpiles and surging domestic demand, and amid sharp gains in food prices in China and abroad. The date, offer volumes, oil types and other details of the edible-oil auction will be announced later, the think tank, an arm of the State Grain Reserves Bureau, said in a statement. The auction, China's first this year, would also clear old edible-oil stocks dating from 2008, according to analysts.
Most-active palm oil futures on the Dalian Commodity Exchange have risen by 18% and soyoil by 15% in the last three months, outstripping the 9% increase of bellwether soybean futures. Facing dwindling stocks, soy crushers in China's northeastern producing provinces were in consultation with state grain authorities earlier this month on a potential soybean reserve sale. However, with the new soybean crop already half harvested and set to be completed next month, the need for a soybean auction has abated, analysts said. China has already been holding regular auctions of millions of tons of corn, wheat and rice reserves to hold down prices.

AUSTRALIA BIOFUEL OUTPUT SEEN DOUBLING BY 2015
SYDNEY, Sept 29 (Reuters) - Australia's biofuel production is forecast to more than double by 2015 as new capacity is installed and demand for alternative fuels increases, a private consultancy forecast in a report on Wednesday. Australia's biofuel annual capacity is forecast to rise to 1.519 billion litres by 2015 from 636 million litres this year, APAC Biofuel Consultants said, adding that this would see more demand for sugar cane and soybeans as biofuel feedstocks.

CANOLA OIL BIODIESEL MEETS FUEL MANDATE-US AGENCY
WASHINGTON, Sept 23 (Reuters) - The U.S. Environmental Protection Agency has placed canola oil on an equal footing with soyoil, ruling that it emits low enough greenhouse gas levels to qualify for the U.S. mandate to increase renewable fuel production. In a final decision signed on Wednesday, the EPA said canola oil biodiesel met the lifecycle greenhouse gas emission reduction level of 50 percent

China to sell vegoil reserves -state grain body
BEIJING, Sept 29 (Reuters) - China will release some of its temporary vegetable oil reserves via public bidding to bolster  market supplies and to stabilise prices, China's State Grain Administration said.
The exact volume would be announced later, the administration said, without giving further details.

Mixed sowings tighten EU rapeseed mkt, imports eyed
PARIS, Sept 28 (Reuters) - Rapeseed supply in Europe is set to tighten further after a smaller harvest this year and a mixed sowing campaign for 2011, which may prompt more soybean and palm oil imports to satisfy biofuel and food demand, analysts said.
The rapeseed crop in the European Union is estimated to have fallen by some 1 million tonnes versus 2009 to around 20 million tonnes, and sowing for the next harvest has been hampered in major producers Germany and Poland by damp conditions.

U.S. soy drops 0.5 pct, corn slips below $5/bsh
SINGAPORE, Sept 29 (Reuters) - Chicago soybean futures slid half a percent, falling further from Monday's 13-month top as improved sowing outlook in South America and harvest of a record U.S. crop weighed on the market.
"The soy market is facing up to what is possibly a record U.S. crop, plus there has been some improvement in South American weather conditions," said Brett Cooper, a senior manager of markets at FCStone Australia.

US Harvest-Standing water a concern for corn, soy in Minnesota
CHICAGO, Sept 28 (Reuters) - Big rains last week in Minnesota left standing water in some farm fields and created conditions in which mold can thrive, possibly reducing corn and soybean yields by as much as 10 percent, agronomists said on Tuesday.
Dry weather in the U.S. Midwest allowed farmers in much of the United States' top growing region to harvest corn at the fastest pace in at least 28 years.