20110119 1804 FCPO EOD Daily Chart Study.

FCPO closed : 3732, changed : +62 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : recovering, seller lock in profit.
Support : 3720, 3700, 3650 level.
Resistance : 3750, 3800, 3850 level.
Comment :
FCPO continue to recover after recent fall recorded gain with higher volume changed hand ahead of tomorrow or Friday export data while soy oil futures price continue to trade firmer.
Daily chart formed a 42 points range up bar candle after market opened gap up and continue to surged higher to closed near the high of the day heading toward middle Bollinger band resistant level with an unchanged side way range bound market reading testing support and resistant level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110119 1720 FKLI EOD Daily Chart Study.

FKLI closed : 1567.5 changed : -4.5 points,  volume : higher.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakening, buyer reducing position.
Support : 1560, 1550, 1530 level.
Resistance : 1570, 1580, 1590 level.
Comment :
FKLI closed recorded loss with higher volume traded despite regional market ended mostly positive after IBM and Apple reported a better than estimated earnings.
Daily chart formed a down bar candle with lower shadow after market opened gap up and traded downward followed by last minutes small recovery positioned nearer and nearer to the middle Bollinger band support level with the reading remain suggesting a side way range bound 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.

20110119 0944 Local & Global Economic Related News.

E.U: ECB steps up bond purchases as Governments aim to revamp tools. The Frankfurt-based ECB said it completed EUR 2.313b (USD 3.07b) of purchases last week after settling EUR 113m the previous one. It will take seven- day term deposits to neutralize EUR 76.5b of liquidity created through bond purchases since the program started on May 10. (Source: Bloomberg)

Japan: BoJ cut its economic assessment of seven of the country's nine regions, the most since April 2009, as export growth cooled and government stimulus measures started to fade. "Compared with the assessment in October 2010, a large number of regions observed that the pace of improvement seemed to be pausing," the central bank said in its quarterly Sakura Report, the equivalent of the U.S. Federal Reserves Beige Book. (Source: Bloomberg)

India: Facing inflation surge, central bank Governor Duvvuri Subbarao said, fueling speculation he may raise interest rates at the Jan. 25 policy meeting. "We recovered from the crisis sooner than other countries but inflation also caught up sooner," Subbarao said in a speech, referring to the global financial crunch. "A lot of other countries are still flirting with deflation. On the other hand, we have a surge in inflation." (Source: Bloomberg)

Philippine: Remittances sent home by Philippine citizens abroad rose in November. The funds increased 10.5% YoY to USD1.61b, the central bank said in a statement. That compares with a 9.3% YoY gain in October. Cash transfers from Filipinos living or working overseas climbed 8.2% YoY to USD17.1b in the 11 months through November. (Source: Bloomberg)

Malaysia: Bank Negara expects 7% GDP growth in 2010
Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz expects the Malaysian economy to grow in the region of 7% for 2010. She said while the external sector may be affected by the slower global growth, the growth momentum of domestic demand is projected to be sustained this year. She expects overall growth to remain strong this year, albeit at a more moderate pace. Zeti also called for greater vigilance on the part of the policymakers in the region. (Financial Daily)

Singapore: Export growth slows as best year since 2003 ends
Singapore’s exports rose at a slower pace in December, ending a year in which shipments jumped the most since 2003 as the global economic recovery boosted demand for the island’s goods. Non-oil domestic exports climbed 9.4% y-o-y, after a revised 9.9% gain in November. Shipments rose about 23% in 2010, the most in seven years. Electronics shipments fell 1.1% in December y-o-y to SGD5.2bn after a 10.8% gain the previous month, the first decline in more than a year. Non-electronics shipments, which include petrochemicals and pharmaceuticals, gained 16.2%. Pharmaceutical shipments dropped 2.8% after falling 34.2% in November. (Bloomberg)

Indonesia: Rating raised by Moody’s to 13-year high
Moody’s Investors Service upgraded Indonesia’s foreign and local-currency bond rating to Ba1 from Ba2, the highest level since the 1997 Asian financial crisis, citing the nation’s “economic resilience” and improving public debt position. That’s still one step below investment grade and puts Indonesia on par with Greece, which was placed on review for a possible downgrade by Moody’s last month. Moody’s also commented that the rating’s outlook is “stable.” S&P lifted Indonesia’s sovereign credit rating to BB from BB- last year, two levels below investment grade, with a positive outlook. (Bloomberg)

China: December property prices rise for 19th month
China’s real estate prices rose for a 19th month in December, raising concerns that the government will expand curbs to limit the risk of asset bubbles in the world’s fastest-growing major economy. Prices in 70 cities rose 6.4% in December y-o-y, the smallest increase in 13 months. Prices gained 0.3% m-o-m. Investment in realestate development rose 12% to RMB557bn y-o-y while full-year investment climbed 33% to RMB4.83trn. Property sales increased 22% to RMB1.02trn, with 218 million m2 of real estate sold, a 12% gain y-o-y. (Bloomberg)

Australia: December annual inflation gauge increases 3.8%
A gauge of Australia’s inflation remained above the central bank’s target range for a fourth straight month, led by higher costs for fruit, vegetables and fuel. Consumer prices increased 3.8% last month y-o-y, after advancing 3.9% in November, according to an index compiled by TD Securities Ltd and the Melbourne Institute. Prices increased 0.2% m-o-m. The survey was taken before floods devastated parts of northeastern Australia, which may force the Reserve Bank of Australia to accept higher inflation in the short term as food and commodity costs rise and growth slows in the disaster zone. (Bloomberg)

Japan: REITs seen doubling down as bond spreads narrow
Japan’s real estate investment trusts may double property purchases in the next fiscal year to JPY 1trn (USD12bn) by boosting bond sales amid the lowest borrowing costs in three years, Credit Suisse said. The extra yield investors demand to lend to Japanese real estate firms instead of the government has fallen to 26 basis points, or 0.26% point, on 17 Jan this year from 230 in April 2009. The comparable premium for US REITS has narrowed to 199 basis points from 1,079 in the same period, according to Bank of America Merrill Lynch Global Bond Indices. (Bloomberg)

Euro: Default swaps beat bonds in highlighting EU stress
Credit-default swaps are a better gauge of euro-region creditworthiness than bonds as the European Central Bank’s EUR 74bn (USD98bn) of debt purchases make investors skeptical about what is driving spreads narrower. The cost of insuring Portuguese debt against default surged to a record on 10 Jan this year on speculation that Germany and France would force the country to seek aid. By contrast, the yield spread between 10-year Portuguese debt and German bonds shrank by the most in a month. (Bloomberg)

UK: Pound Losing to Euro as Cameron Collides With King
No major currency is performing worse than the pound as Prime Minister David Cameron’s budget cuts slow growth and accelerating inflation limits the Bank of England’s ability to spur the world’s sixth-largest economy. GBP has weakened against all 16 of the most-traded currencies, depreciating even more than the Euro, since the start of August. The three most accurate strategists for the pound expect it to continue falling and futures traders this month were the most bearish since September. (Bloomberg)

UK: Inflation accelerates more than forecast to 3.7%
UK inflation accelerated more than economists forecast to an eight month high in December as fuel and food prices rose, adding to pressure on the Bank of England to raise the key interest rate from its record low. Consumer prices rose 3.7% from a year earlier after a 3.3% increase in November, the office for National Statistics said today in London. The median forecast of the 31 economists in a Bloomberg survey was 3.4%. (Bloomberg)

US: Global demand for US assets increased in November
Global demand for U.S. stocks, bonds and other financial assets rose in November as private investors stepped up purchases.Net buying of long-term equities, notes and bonds totaled USD 85.1bn during the month, the highest since August, compared with net buying of USD 28.9bn in October, according to data released today in Washington. Europe’s sovereign debt crisis has driven investors to the relative safety of US Treasury securities. Investors are also attracted by rising corporate profits and share prices as the world’s largest economy maintains its recovery from the deepest recession since the 1930s. (Bloomberg)

U.S: New York manufacturing picks up as orders, sales gain in January. The Federal Reserve Bank of New York's general economic index rose to 11.9 from a revised 9.9 in December. Readings greater than zero signal expansion in the so-called Empire State Index, which covers New York, northern New Jersey, and southern Connecticut. (Source: Bloomberg)

U.S: Builder confidence in January held back by lack of credit. The National Association of Home Builders/Wells Fargo sentiment index registered a reading of 16, the same as the past two months. Readings below 50 mean more respondents said conditions were poor. (Source: Bloomberg)

E.U: Germany balks at crisis response; EU sees complacency. Germany pushed back at European Union calls for a rapid reinforcement of the safety net for debt-strapped countries, saying the rally in southern European bond markets buys time to craft a new strategy. German Finance Minister Wolfgang Schaeuble said there is no urgent need to act, eyeing a late-March deadline to strengthen the EUR 750b (USD 1tr) rescue fund, hammer out a permanent anti-crisis tool and tighten fiscal rules for the 17- nation euro area. (Source: Bloomberg)

Germany: Investor confidence jumps to six-month high in January. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict developments six months in advance, increased to 15.4 from 4.3 in December, its third straight advance. (Source: Bloomberg)

U.K: Consumer confidence rose from a 20 month low in December as more Britons thought it was a good time to buy household goods before this month's increase in sales tax, Nationwide Building Society said. The sentiment index climbed 8 points to 53, reversing the decline seen in November, when the gauge fell to its lowest since March 2009, the customer owned lender said in an emailed report. (Source: Bloomberg)

China: Foreign direct investment rose to a record USD105.7b last year, underscoring confidence that rising incomes will boost demand in the world's fastest growing major economy. Investment climbed 17.4% YoY, the Ministry of Commerce said in a statement in Beijing. Spending in December rose 15.6% YoY to USD14b. (Source: Bloomberg)

S. Korea: Department store sales growth accelerated in December, boosted by holiday demand and the nation's economic recovery. Outlays at the three biggest chains climbed 11.6% YoY in December, after rising 10.1% YoY in November, the Ministry of Knowledge Economy said in a statement. Sales have increased for 22 consecutive months, according to the ministry's data. (Source: Bloomberg)

Thailand: Export growth slowed in December, a sign the surge in global demand that lifted Asian economies earlier in 2010 may be starting to ease. Overseas sales increased 18.8% YoY last month to USD17.4b after rising 28.5% YoY in November, the commerce ministry said. Exports climbed 28.1% YoY to USD195.3b in 2010. (Source: Bloomberg) 

20110119 0942 Malaysia Corporate Related News.

Axiata, DiGi: To save RM2.2b with network deal. Celcom Axiata Bhd and DiGi Telecommunication Sdn Bhd have signed a Network Collaboration Agreement. The scope of the tie-up will initially focus on the sharing of telecommunication sites, access transmission (microwave links), aggregation transmission and trunk fibre transmission. Full realization of cash savings is estimated to be about RM2.2b over 10 years. They expect to see incremental savings as early as 2012 and gradually ramping up to an average annual savings of RM150m to RM250m after 2015. (Source: Bursa Malaysia)

Proton: Seeks RM2.35b funding to revive Lotus. Proton Holdings Bhd is in talks with CIMB Bank and several others to secure loans and investments totaling GBP480m (RM2.35b) needed to turn around Group Lotus. The funds will mainly come from loans and the rest will be from Proton's additional investments and revenue from Group Lotus. (Source: The Star)

Jetson: Buys lands in Penang for Rm14m. Kumpulan Jetson Berhad's 51% owned subsidiary, Jetson Development Sdn Bhd has acquired 48,290 sq ft of lands in Penang for RM14m from Malaysian Building Society Bhd (MBSB). The three pieces of land are located in Georgetown. (Source: Bursa Malaysia)

Property: Transactions may hit RM100b. A total of 342,179 property transactions worth RM96.8b were recorded between January and November last year, which means the full year's transactions could reach the RM100b mark. This is the first time transactions value has reached this figure. (Source: The Star)

Manufacturing: To attract over RM50b. Malaysia expects investments in the manufacturing sector to surge to more than RM50b this year. The manufacturing sector, which was the fastest growing sector last year, attracted RM47.2b in approved investments in 910 projects, a 44.8% jump compared with RM32.6b received in 2009. The US was the largest source with investments totaling RM11.7b, mainly in electrical and electronics (E&E), machinery and equipment and scientific and measuring equipment. Other top investors were Japan, Hong Kong, Singapore and Germany. (Source: Business Times)

AirAsia: Introduces fly-thru service. AirAsia introduces "Fly-Thru" service for its guests on multiple-flight travel from Thailand to perform a single check-in for their original and connecting flights right through to their final airport of destination. Fly-Thru is available to guests traveling on selected AirAsia (short-haul) and all AirAsia X (long-haul) flights transiting through Kuala Lumpur. Guest could connect to their next flight to their intended destination without the need for immigration clearance or a transit visa in Malaysia. (Source: Bernama)

Malaysian Smelting: Expects SGX listing soon. Malaysia Smelting Corp Bhd (MSC) expects its proposed secondary listing on the Singapore Exchange (SGX) main board to take place before the end of this month. This will make MSC dual-listed on both Bursa Malaysia and SGX. The size of the IPO is between 12.5m and 25m new MSC shares, with an expected gross proceeds of RM100m. (Source: The Star)

LTAT: Declares 14% dividend and bonus. The Armed Forces Fund Board (LTAT) has declared a 14% dividend and bonus for 2010 with a total payout of RM616.3m, 7.2% higher than the RM575.2m paid in 2009. LTAT registered a total income of RM747.5m in 2010, which was not only the highest recorded since the fund's establishment 38 years ago, but was also 34.7% higher than 2009's income of RM554.7m. (Source: The Edge Financial Daily)

O&G: Petronas' multi-billion ringgit job award likely by end of the month. Petroliam Nasional Bhd (Petronas) is expected to award multi-billion ringgit contracts for the development of marginal oil fields by the end of this month to several consortia comprising local and foreign companies. Petronas will unveil a new business model on the development of the marginal oil fields and possibly, more incentives for the industry. (Source: The Star)

Plantation: Local refiners snap up cheaper Indonesian palm oil. Malaysian refiners are snapping up more Indonesian crude palm oil, taking advantage of its widening discount to local production. Indonesian crude palm oil for February delivery was trading at RM3,690 per tonne, some RM60 lower than in Malaysia despite dealers pricing in a possible Indonesian government move to raise export taxes next month. Indonesia is likely to raise export taxes to 25% in February from 20% currently. (Source: The Edge Financial Daily)

Bursa, Thai bourse to start cross-trades by year-end
Malaysia and Thailand will start cross-trading of shares by year-end as part of a plan to make Southeast Asian markets more accessible and spur trading, Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff said. Singapore, followed by the Philippines, will be next to join the drive to link the Association of Southeast Asian Nations (Asean), Yusli said yesterday. The bourses aim to promote investment in a region with "one of the highest savings rates in the world", Veerathai Santiprabhob, Stock Exchange of Thailand's chief strategy officer, said by phone. (BT)

Khazanah portfolio value surges
Khazanah Nasional's investment portfolio value rose to a record high of nearly RM113bn last year, helped by rising asset values and stable and careful debt-positioning. Khazanah Nasional saw the value of its investment portfolio rising by about RM21bn to an all-time high of nearly RM113bn last year, helped by rising asset values and stable and careful debt-positioning. The government's investment arm will remain cautious in its investments in 2011. Its realised asset value (RAV) grew by 23.5% year-on-year to RM112.6bn for 2010 while RAV less total liabilities stood at RM75bn. Khazanah invested almost as much as it earned in 2010, with a total of RM6.5bn investment in 12 transactions and RM6.2bn realised through the divestment of its holdings through seven transactions. It made gains of about RM3.5bn through its divestment activities last year. (BT)

Bids for Pos stake selloff
Khazanah Nasional will call for bids to buy its stake in Pos Malaysia this week, as part of what it calls the second stage of its divestment plan of the postal firm. Khazanah owns 32.2% of Pos Malaysia. Its managing director Tan Sri Azman Mokhtar said the first stage of the divestment plan was about ironing out regulatory issues such as the postage stamp hike and salary of postmen that were necessary to start the bidding process. Khazanah is giving bidders about a month to get back to it with proposals. "The next milestone would be the Postal Bill. Hopefully it will go through in the next Dewan Rakyat sitting," Azman said. (BT)

Proton to seal £480m Lotus funding soon
Proton Holdings will finalise plans to raise as much as £480m (RM2.34bn) to fund the turnaround plan for its unit Group Lotus plc in as early as February. The funds will mainly come from loans and the rest will be from Proton's additional investments and revenue from Group Lotus, a sports carmaker based in Norwich, the UK. It is understood that CIMB Group Holdings Bhd's chief executive officer (CEO) Datuk Seri Nazir Razak met with Proton's board of directors at Group Lotus headquarters in Hethel, Norwich, although it is unclear what was discussed. Under its five-year turnaround plan, Group Lotus plans to more than double its production to some 8,000 cars a year after 2014 by launching five new models. Proton also expects Group Lotus to be profitable and contributing a significant chunk to its net profit by the end of 2014. (BT)

KPJ unit to acquire medical centres in Sibu
KPJ Healthcare‘s wholly-owned Kumpulan Perubatan (Johor) SB (KPJSB) is buying a 100% stake in Sibu Medical Centre Corp SB (SMCC) and Sibu Geriatric Health & Nursing Centre SB (SGHNC). KPJSB will pay RM26.9m for SMCC and RM1.24m for SGHNC. (BT)

PBA to cooperate with Indonesian water body
PBA Holdings’ wholly-owned subsidiary, PBA Resources SB (PBAR), and Persatuan Perusahaan Air Minum Seluruh Indonesia PERPAMSI) have signed a memorandum of understanding (MOU) to cooperate in educational and training programmes related to water services industry. Under the proposed cooperation, which is for two years, PERPAMSI will organise, promote and market the Water Management Certified Programme on behalf of PBAR to the relevant parties within the industry in Indonesia. (BT)

Puncak seeks clarification from Selangor
Puncak Niaga Holdings (PNHB) is seeking clarification from the Selangor government on certain terms with regard to the latter’s offer for its water assets. Its wholly owned subsidiary, Puncak Niaga (M) SB (PNSB) and 70%-owned unit, Syarikat Bekalan Air Selangor SB (Syabas) have yet to receive any confirmation and/or clarification from the Menteri Besar Selangor (Incorporated) (MBI) on certain terms of the offer documents received by both companies on 7 Jan. (FinancialDaily)

KNM gets 4-year loan extension
KNM Group has received another four years’ extension until 21 Feb 2015 for its term loan facility secured from Malayan Banking (Maybank). The loan’s principal balance outstanding as at 7 Jan 2011 was at RM351.33m. The term loan was for the purpose of refinancing the bridging loan that was secured for the high-profile acquisition of German-based Borsig BmbH, which was completed on 6 June, 2008. (FinancialDaily)

Dayang fixes rights issue at RM1.10
Dayang Enterprise Holdings (DEBH) has fixed the issue price for its rights shares at RM1.10 per rights share,, which is a 63% discount to its closing price of RM2.97 yesterday. The issue price represents about 49.21% discount to the theoretical ex-all price of RM2.1656 per Dayang share. (FinancialDaily)

SP Setia secures prime land in Bangsar, announces RM1.1bn fund raising
 SP Setia announced a fundraising exercise via a proposed placement of 15% of new shares to be done via bookbuilding that could easily raise RM1.1bn. It had received an approval-in-principle from the Prime Minister’s Department to talk over terms for the proposed development of a new integrated health and research complex for the Ministry of Health in Setia Alam. In return, SP Setia’s 50% subsidiary, Sentosa Jitra SB, gets 40 acres of prime land along Jalan Bangsar where the present facilities belonging to the health ministry are located. (Financial Daily)

PLUS bins Jelas Ulung’s takeover offer
PLUS will not consider Jelas Ulung SB’s takeover offer after it failed to meet several conditions set earlier. It is understood that Jelas Ulung was not able to cough up the RM50m deposit and a letter from the financier on its ability to complete the transaction. PLUS has accepted UEM Group and EPF’s joint bid. (The Malaysian Reserve)

Hing Yiap receives bid from major shareholder
Hing Yiap has received an unconditional takeover offer from its largest shareholder at RM1.50 a share. The shareholder, Everest Hectare SB, bought a 50.5% stake in Hing Yiap yesterday from some of the group's directors for RM31.3m or RM1.50 a share. Everest, which is partly owned by Ng Chin Huat, managing director of another garment maker, Asia Brands Corp Bhd, ultimately aims to maintain Hing Yiap's listed status. (BT)

Axis REIT to sell Port Klang complex
Axis REIT hopes to complete the sale of an industrial complex in Port Klang for RM14.5m by the end of June this year. It will make a net gain of RM0.8m from the sale to Freight Management. (BT)

QL places out 20.8m new shares at RM5.60 each
QL Resources has completed the bookbuilding exercise for the offering of 20.8m new shares pursuant to its private placement exercise, which is estimated to raise some RM116.6m. The issue price has been fixed at RM5.60 per share, which is a 3% discount to its closing price of RM5.76 yesterday. (StarBiz)

20110119 0928 Global Market Related News.

China 2010 corn, sugar imports surge; soyoil down -CCS
BEIJING, Jan 19 (Reuters) - China imported 1.573 million tonnes of corn in 2010, a rise of 1,762 percent from 2009 while sugar imports jumped 66 percent on year to 1.77 million tonnes, according to data supplied by CCS ( China Customs Statistics) Information Center.
In 2010, China imported 44 percent less soyoil, or 1.34 million tonnes, while palmoil imports fell 15.6 percent to 4.31 million tonnes, figures showed.

Gold poised for third day of gains; platinum at 30-mth high
SINGAPORE, Jan 19 (Reuters) - Spot gold was on course for a third consecutive day of gains, supported by dollar weakness and physical buying, while platinum hit a 30-month high, buoyed by an improved economic outlook.
"It looks like gold is following the euro, which had a relatively strong run overnight," said Darren Heathcote, head of trading at Investec Australia, adding that the dollar weakness was expected to continue supporting gold prices.

Asian shares rise on Wall St gains, euro edges up
SINGAPORE, Jan 19 (Reuters) - Asian stocks rose, taking a cue from Wall Street gains and on hopes for more robust U.S. earnings, while the euro edged back towards a one-month high hit the previous day.
"After Google reports tomorrow investors will shift their   focus back to Tokyo companies," said Hiroaki Osakabe, a fund   manager at Chibagin Asset Management.  

OIL: Crude extends fall on pipeline restart, OPEC
TOKYO, Jan 19 (Reuters) - U.S. crude futures extended declines on Wednesday, pressured by the restart of the Trans Alaska Pipeline and as the International Energy Agency said OPEC may have quietly raised production in response to prices nearing $100.
Alaska's main oil pipeline should restore shipments to its normal rate of 630,000 barrels per day in under a week from around 510,000 bpd, after its recent shutdown due to a leak, the operator said on Tuesday.

GLOBAL MARKETS: Grains jump on weather; others edge up on dollar
NEW YORK, Jan 19 (Reuters) - Corn and wheat prices jumped on Tuesday on dry crop weather in Argentina and the U.S. Plains, while other commodities saw modest gains on support from a weaker dollar.
"To break into new highs, you're going to need some type of fundamental impetus and today, you just don't have it," said Michael Gross, a commodity futures analyst at Optionsellers.com in Tampa, Florida.

POLL-US crude stocks seen down on Alaske pipeline shutdown
NEW YORK, Jan 17 (Reuters) - U.S. crude oil inventories were forecast to have fallen last week as the shutdown of the Trans Alaska Pipeline System due to a leak forced producers to curb output, a Reuters poll of analysts showed on Tuesday.
The average forecast in the preliminary poll of eight analysts called for a 300,000 barrel decline for the week to Jan. 14. The poll was taken ahead of weekly industry and government data this week, a day later than usual due to Monday's holiday.

Alaska oil pipe seen at normal rates in 5-7 days
ANCHORAGE, Jan 18 (Reuters) - Alaska's main oil pipeline should restore shipments to its normal rate of 630,000 barrels per day in under a week after its recent shutdown due to a leak, a spokeswoman for operator Alyeska said on Tuesday.
The pipeline, which resumed shipments on Monday following the installation of a bypass around the leaky section, was transporting around 510,000 bpd as of Tuesday.

COLUMN-Fed hits its 3rd mandate: rising shares - James Saft
James Saft is a Reuters Columnist. The opinions expressed are his own
HUNTSVILLE, Ala, January 18  (Reuters)  - Apparently not satisfied with being unable to fulfill its duel target of price stability and maximum employment the Federal Reserve has set itself a third mandate: higher asset prices.
Speaking on CNBC at a Federal Deposit Insurance Corporation-sponsored forum on small business lending last week, Fed Chairman Ben Bernanke was asked how, in essence, his $600 billion quantitative easing programme could be called a success when interest rates and commodity prices had actually risen in response."We see the economy strengthening, its gotten better over the last three or four months, a 3-4 percent growth number for 2011 seems reasonable," he said.

Indian finance firms eager for commodity options trade
MUMBAI, Jan 18 (Reuters) - Indian finance service firms hope the embattled government has enough reform zeal to pass a bill to allow commodity options trade, enabling them to offer more tools to hedge exposure to raw material costs.   
Multi-national firms like PepsiCo Inc  and Coca-Cola Co  are major buyers of sugar in India and also close trackers of exchange rates and other costs like freight that can be indexed. Domestic sugar buyers like ice cream and sweets maker Kwality Dairy Ltd  are also keen to hedge costs.

US senators threaten currency bill ahead of Hu visit
WASHINGTON, Jan 17 (Reuters) - A group of U.S. senators, on the eve of Chinese President Hu Jintao's arrival in the United States, said it was vital that Congress pass legislation to get tough with China over its currency practices.
"There's no bigger step we can take to preserve the American dream and promote job creation, particularly in the manufacturing sector ... than to confront China's manipulation of its currency," Democratic Senator Charles Schumer said.

Funds' commodity holdings could hit $500 billion
LONDON/NEW YORK, Jan 18 (Reuters) - Commodity investments could near half a trillion dollars by the end of 2011 as the return of $100 oil and a broad-based rally heighten interest in the asset class to levels not seen since 2008.
But the wave of money now hitting commodities is more sophisticated and discerning than its predecessor three years ago. Investors are increasingly looking for active management rather than 'buy-and-hold' plays, which left many counting their losses after the financial crisis hit.

PRECIOUS-Gold gains as euro rally gathers pace
LONDON, Jan 18 (Reuters) - Gold rose for a second day on Tuesday, buoyed by a fall in the dollar and a stream of demand from key Asian consumers, along with a degree of uncertainty over a permanent resolution to Europe's debt crisis.
Gold has fallen by more than 3 percent this month, under pressure from investors eager to cash in on the 30-percent price gain of 2010 and also from a waning need for safe-haven assets as data paints a picture of a more robust global economy.

FOREX-Euro buoyed by sovereign demand, strong German data
LONDON, Jan 18 (Reuters) - The euro rose on Tuesday on buying by sovereign funds and after an influential German survey pointed to robust growth in Europe's largest economy, pushing euro zone debt concerns into the background.
The euro  rose more than 1.0 percent at $1.3430, extending earlier gains made on demand from Middle East accounts and reports that Russia was considering buying euro zone debt.The ZEW's headline economic sentiment indicator surged to 15.4 points in January from 4.3 points in December, racing past forecasts for a reading of 6.8.

Wheat up 1 pct on demand, soy pressured by Argentine rains
SINGAPORE, Jan 18 (Reuters) - U.S. wheat rose around 1 percent buoyed by strong purchases of the grain led by Algeria which snapped up 600,000 tonnes in a tender, while corn climbed to a 2-1/2 year high on prospects of tightening global supplies.
"The wheat market is supported by pretty strong exports overnight which is contributing to a firmer tone."

World stocks at new high, euro up on debt hopes
LONDON, Jan 18 (Reuters) - World stocks hit a fresh 28-month high while the euro climbed on hopes for an easing of the euro zone debt crisis.
"Players are not too keen to push the euro much lower," said Paul Mackel, director of currency strategy at HSBC.

Alaska oil pipe restarts
ANCHORAGE, Alaska, Jan 18 (Reuters) - Alaska's crude oil pipeline resumed operations on Monday, restoring the flow of about 12 percent of U.S. oil production nearly a week and a half after the line was shut due to a leak.
A bypass line to circumvent the leak was completed earlier on Monday and operators are expecting to ramp up throughput to 500,000 barrels per day (bpd) within 24 hours, Alyeska Pipeline Service Co said in a statement.

20110119 0927 Soy Oil & Palm Oil Related News.

ITS CPO export up 3.68% to 589,010 tonnes for the period of 1~15 Jan 2011.
SGS CPO export up 3.7% to 568,535 tonnes for the period of 1~15 Jan 2011.

Soy product futures ended mixed, with soyoil divorcing itself from weakness in the rest of the complex on solid underlying global vegoil demand. Soymeal futures ended lower, succumbing to weakness in soybeans and adjustments in the meal/oil spread relationship. CBOT March soyoil ended 0.28 cent, or 0.5%, higher at 57.55 cents per pound, and March soymeal traded $4.70, or 1.2%, lower at $383.40 a short ton. (Source: CME)

Brazil's Advance Soy Sales Reach 44% Of 2010-11 Crop (Source: CME)
Brazilian farmers have sold 44% of their 2010-11 soy crop compared with 25% one year ago, consultancy Celeres said in a report. The figure is a rise from 42% one week ago, according to Celeres, which is based in Uberlandia. Brazil growers are selling more of their crop in advance this year though the planting of the 2010-11 crop was done at the same time as the year-earlier seeding, according to Celeres in its weekly report. The estimates released are for the period ended Jan. 14. Farmers are selling more in advance this year "basically because of the good prices," Leonardo Menezes, an analyst for Celeres, told Dow Jones Newswires by telephone from Uberlandia last week. The soy farmers reduce their risk by selling more of their crop in advance, he said. The consultancy, however, recommends that new sales should be made only to cover liabilities as "soy will be able to maintain prices at high levels" during 2011.
"Our strategic recommendation is to immediately suspend sales," Celeres said in its report this week. The consultancy said growers should hold their beans for probable new rounds of price increases. Brazil, the world's second-largest soy grower after the United States, finished seeding its 2010-11 crop late in 2010, Celeres said earlier. Harvesting began in Mato Grosso, Brazil's largest soy-producer state, earlier this month. Collecting the country's crop ends in May with the harvest in Rio Grande do Sul, Brazil's southernmost state and the country's third-largest producer of the oilseed. Celeres estimates the 2010-11 Brazilian soy crop will reach 68.1 million metric tons, 0.6% below the figure for the year-earlier crop. The estimate is unchanged from its forecast made in December. Brazilian soy exports set a new record in 2010 with China responsible for almost 66% of the shipments, Celebes said, citing a government report in Brasilia, the federal capital.
Brazil exported 19.1 million tons of soybeans to China last year, Celebes said in the report, citing a Brazilian secretariat that compiles trade data.

Palm rebounds from one-mth lows on supply tightness
JAKARTA, Jan 18 (Reuters) - Malaysian palm oil bounced from one-month lows hit earlier as persistent worries that demand will outstrip supplies, buoyed prices.  "The weather is supporting the market, followed by good 15-day export numbers," said one Malaysian trader.

Brazil soy crop seen heading for record - AgRural
SAO PAULO, Jan 17 (Reuters) - Brazil's 2010/11 soybean crop is expected to reach a record 69.65 million tonnes, after good rains and a record area planted to the oil seed prompted grains analysts AgRural to raise their estimate on Monday.
In December, AgRural put the new crop at 69.43 million tonnes, greater than the current record 68.7 million tonnes harvested in 2009/10.

Rains bring relief to Argentine soy, risk persists
BUENOS AIRES, Jan 17 (Reuters) - Weekend rains over Argentina's main soy-farming region brought relief to drought-stricken crops, but more rain is needed to halt yield losses that are increasing every week.
Argentina is one of the world's biggest exporters of soy and corn, but scarce rain caused by the La Nina weather phenomenon has driven down harvest estimates and boosted global grains prices in recent months due to supply fears.

20110114 1809 FCPO EOD Daily Chart Study.

FCPO closed : 3680, changed : -14 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : falling, seller holding on.
Support : 3650, 3620, 3550 level.
Resistance : 3700, 3720, 3750 level.
Comment :
FCPO sliped lower recorded small loss after yesterday rebound with lesser volume changed hand ahead of next Monday export data while soy oil futures price continue to eased lower after last 2 days rally.
Daily chart formed a down doji bar candle with longer upper shadow after market opened lower, recovered tested higher resistant level near middle Bollinger band but face heavy selling pressure pressed price to closed near the low of the day. Reading continue to call for a side way range bound market development testing support and resistant level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110114 1748 FKLI EOD Daily Chart Study.

FKLI closed : 1573 changed : +1 point,  volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakening, buyer taking profit and reducing exposure.
Support : 1570, 1560, 1550 level.
Resistance : 1580, 1590, 1600 level.
Comment :
FKLI closed 2 ticks higher with quiet volume transacted after while regional market ended mixed.
Daily chart formed a doji bar candle after market traded range bound in a 10 point range market Reading wise remain unchanged with correction side way range bound 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.

20110114 1002 Global Economics Related News.

Global: World Bank sees capital-flow risks, 3.3% growth in 2011. Capital inflows, a driving force of the recovery in emerging countries, now pose risks to global growth as they can trigger abrupt currency fluctuations that may do "lasting damage" to some nations, the World Bank said. The Washington-based institution left a growth forecast for the worlds economy this year unchanged at 3.3%, from a revised 3.9% in 2010. It predicted that the slowdown, which reflects capacity constraints in developing nations and restructuring in developed economies, will be followed by faster growth of 3.6% in 2012. (Source: Bloomberg)

U.S: Initial jobless claims rose last week to 445,000. The number of first-time claims for unemployment insurance payments jumped in the first week of 2011 to the highest level since October as more Americans lined up to file following the holidays. Initial jobless claims rose by 35,000 to 445,000, according to Labor Department data. The average number of applications over the past four weeks, a less-volatile gauge, increased to 416,500. (Source: Bloomberg)

U.S: Producer prices increased 1.1% MoM in December, led by higher prices for commodities such as fuel and food. The so-called core measure, which excludes volatile food and energy costs, climbed 0.2% MoM, in line with estimates. (Source: Bloomberg)

U.K: Manufacturing rose more than economists forecast in November. Factory output rose 0.6% MoM from October, when it also increased at the same pace. Overall industrial output rose 0.4% MoM in November. (Source: Bloomberg)

Spain: Sells top target in first debt auction of 2011. Spain sold EUR 3b (USD 3.95b) of bonds in its first debt auction of the year, meeting its maximum target as demand increased. The Treasury sold the five-year bonds at an average yield of 4.542%, the Bank of Spain said, compared with 3.576% the last time the securities were auctioned on Nov. 4. Similar-maturity bonds traded at a yield of 4.630% before the auction and demand was 2.1 times the amount sold compared with 1.6 times at the previous sale. (Source: Bloomberg)

China: Will allow companies to invest overseas in Yuan in the latest move to expand the currency's international role and curb dependence on the dollar. The new rules will cover non-financial companies in places where a Yuan trade settlement program is taking place, the People's Bank of China said on its website. (Source: Bloomberg)

India: Food inflation slowed for the first time in six weeks after Prime Minister Manmohan Singh's government banned onion exports and supplies of potatoes and lentils improved from fresh harvests. An index measuring wholesale prices of farm products including milk and lentils rose 16.91% YoY in the week ended Jan. 1. The gauge gained 18.32% YoY the previous week. (Source: Bloomberg)

Singapore: Plans more housing curbs as prices rise to record. Singapore will raise down payment requirements for second mortgages and extend the period homeowners must hold properties to avoid a sales tax as it steps up efforts to curb speculation after prices rose to a record. Individuals with more than one mortgage can only borrow up to 60% of a property's value, down from 70%, the government said in a statement. On loans to entities other than individuals it will be reduced to 50% from 60%. Sellers will now have to pay a stamp duty for all homes and land sold within four years of purchase, from three years. (Source: Bloomberg)

Thailand: Consumer confidence rose for the first time in three months in December as the baht eased from a 13-year high and exports grew. An index measuring sentiment climbed to 71.9 last month from 70.3 in November, the University of the Thai Chamber of Commerce said in a statement in Bangkok. (Source: Bloomberg)

Australia: December employment growth misses estimates as a stronger currency and higher borrowing costs slowed the economy. The number of people employed rosed by 2,300 from November, the statistics bureau said in Sydney. The jobless rate fell to 5%, the lowest since January 2009, from 5.2% a month earlier partly because some people stopped looking for work. (Source: Bloomberg)

South Korea: Rate rise boosts won pressure as Lee battles inflation
South Korea’s third interest-rate increase since the global financial crisis and the government’s planned price controls may fail to curb inflation unless the won appreciates further, paring the cost of imported goods. The Bank of Korea raised borrowing costs by a quarter of a percentage point to 2.75% and the government said it aims to freeze utility prices and reduce food tariffs to damp quickening inflation. While the won rose to a twomonth high against the dollar after the rate increase, the currency’s climb over the past year is the weakest in Asia outside Hong Kong, which operates a peg to the greenback. (Bloomberg)

China: Inflation may ease pressure on yuan at Hu-Obama summit
Rising inflation in China that is causing headaches for President Hu Jintao at home may help relieve tensions with the US over the yuan as he prepares to meet President Barack Obama in Washington next week. Prices are climbing faster in China than in the US, making Chinese goods less competitive, Treasury Secretary Timothy F. Geithner said. Chinese officials may also seek to speed up gains in the currency, also known as the renminbi, to fight inflation, lowering the cost of imported US goods such as Boeing Co. aircraft and Microsoft Corp. software. (Bloomberg)

India: To Import onions from Pakistan as inflation set to climb
India will import 1,000 tonnes of onions and kept a ban on export of edible oils and lentils to cool prices, ahead of a report that may show inflation accelerated last month. The benchmark wholesale-price index probably gained 8.4% in December 2010, the median forecast of 30 economists in a Bloomberg News survey showed. The gauge rose 7.48% the previous month. (Bloomberg)

UK: BOE holds stimulus as Cameron’s spending squeeze looms
The Bank of England maintained emergency stimulus for the economy as officials judged Prime Minister David Cameron’s spending squeeze this year will help tame the fastest inflation since he took office. The nine-member Monetary Policy Committee, led by Governor Mervyn King, held its bond plan at GBP200bn (USD315bn) as forecast by all 39 economists in a Bloomberg News survey. The bank left its main interest rate at a record low of 0.5% as forecast by all 61 economists in a separate poll. (Bloomberg)

EU: ECB keeps rate at 1% as crisis tests monetary policy
The European Central Bank kept interest rates at a record low as the sovereign debt crisis widens economic divergences within the euro area, straining the bank’s one-size-fits all monetary policy. The ECB’s Governing Council set the benchmark rate at 1% for the 21st month, as predicted by all 53 economists in a Bloomberg News survey. (Bloomberg)

US: Trade deficit unexpectedly decreases
The US trade deficit unexpectedly shrank in November as growing global demand and a weaker dollar help boost overseas sales of everything from aircraft to cotton. The gap shrank 0.3% to USD38.3bn, the smallest in 10 months, as exports climbed to the highest level in more than two years, according to data from the Commerce Department in Washington. Other reports showed increases in claims for jobless benefits and wholesale prices. (Bloomberg)

20110114 1001 Malaysia Corporate Related News.

Maybank: Ringgit loans for British properties. Malayan Banking Bhd (Maybank) expects its Overseas Mortgage Loan Scheme, the bank's first ringgit-denominated mortgage facility for property purchase in Britain, to boost its home financing division. With the new product, the division is expected to grow more than 13% in its current financial year ending June 30, 2011. The mortgage was designed for high net worth customers interested in buying properties in Britain due to the favourable currency exchange rate. (Source: The Star)

Property: Good outlook despite soft rental market for property. The overall property sector is expected to enjoy an uptrend this year, buoyed by the various economic transformation programmes despite a soft market in the rental of high-end condominiums. Average prices in the secondary high-end condominium market fell by 29% between the second quarter of 2008 and the second quarter of 2009 but this sub-segment of the residential market had been on the uptrend since the third quarter of 2010, increasing by 13%. (Source: The Star)

Airlines: Airfares may go up, low cost carrier terminal in Perak. Local airlines may increase air fares or fuel surcharges should their regional peers do so as jet fuel prices continue to trend upwards. As crude oil prices continued to trade above USD90 per barrel, aviation jet fuel price for this week was quoted at USD106.3 per barrel, based on the International Air Transport Association's website. Separately, a low-cost carrier terminal (LCCT) may be built in Perak to fuel its economic growth and development of the Northern Corridor Economic Region (NCER). (Source: The Star, The Edge Financial Daily)

O&G: Santos-Petronas USD16b GLNG project gets nod. The Gladstone Liquefied Natural Gas (GLNG), a joint venture between Petroliam Nasional Bhd (Petronas), Santos, Total SA and Kogas have approved the development of the USD16b (RM48.8b) project in Queensland. Santos owns 30% of GLNG, while Petroliam Nasional Bhd (Petronas) and Total SA own 27.5% respectively and Korean Gas Corp (Kogas) owns 15%. Major works would begin for upstream field development, pipeline and LNG plant facilities. (Source: The Edge Financial Daily)      

Suria Capital unit and partners bag RM1bn job
Suria Capital Holdings’ wholly-owned subsidiary, SCHB Engineering Services SB and its consortium partners, have been awarded a RM1bn engineering, procurement, construction and commissioning (EPCC) contract for a power plant project in Sabah. The contract from Kimanis Power SB involves the construction of a 300MW combined-cycle gas turbine gas-fired power plant project in Kimanis, Sabah, Suria Capital told Bursa Malaysia yesterday. The construction period is three years. SCHB's consortium partners include CTCI Corp, CTCI Overseas Corp Ltd, CTCI Malaysia SB and Steamline (M) SB. Kimanis Power SB is a 60:40 joint venture between Petronas Gas (PetGas) and NRG Consortium SB, the business arm of Yayasan Sabah Group. (StarBiz)

Perak may have its own LCCT, says MB
The Perak state government is considering setting up its own low-cost carrier terminal (LCCT) in the northern part of the state. "We have had a few discussions with AirAsia on the matter and we have proposed several locations in Perak, and they have stated their preference for one particular location," Menteri Besar Datuk Seri Zambry Abd Kadir said yesterday. The site is expected to be in the vicinity of Parit Buntar and Taiping, which is in the area of the Northern Corridor Economic Region. Zambry explained that the state government was waiting for the right time to bring it up to the federal government to decide on the suitability and viability of the project. (BT)

JCorp plans group-wide transformation
Johor Corp (JCorp) will undergo a group-wide transformation programme which will be implemented in phases over the next few years. JCorp president and chief executive officer Kamaruzzaman Abu Kassim said it was focusing on enhancing its core businesses to bring the state agency to the next level. "The immediate task now is to resolve the debt of RM3.6bn that comes due in mid-2012 and we have identified the means of achieving this," Kamaruzzaman said in a statement yesterday. JCorp has appointed CIMB Bank and Maybank Investment Bhd as advisers for the restructuring. The banks are also the biggest lenders to JCorp. (BT)

Approval in writing for Langat 2 plant pending
The Selangor government had in December promised to allow the federal government to build the Langat 2 water treatment plant, which is part of the Pahang-Selangor Interstate Water Transfer Project. Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said his ministry, however, was still waiting for the approval in writing from the state government, which was expected to be received this month. “Although we are seven months late, the state government's latest decision means that we can proceed. And we are going ahead with the tender this month or by February. The approval means the last hurdle has been removed,” he said after meeting with the ministry's officers and staff, here yesterday. (StarBiz)

Sime to launch 15 property projects
Sime Darby, through Sime Darby Property, will be launching 15 projects across 10 townships in the first half of this year. Its head of marketing development, Henri Young said, the townships include Putra Heights and USJ Heights in Subang Jaya, Denai Alam (Shah Alam) and Bandar Bukit Raja (Klang). "There is still strong demand for landed and residential properties in Malaysia," he said yesterday. He said the company's previous projects in Denai Alam, Bandar Bukit Raja and the USJ Heights townships were sold out within two months. (BT)

20110114 0900 Global Market Related News.

Oil eases towards $91 on disappointing US data, OPEC
SINGAPORE, Jan 14 (Reuters) - Oil eased,  pressured by disappointing U.S. economic data and the prospect  OPEC would raise output should prices break above $100 a  barrel for an extended period.
U.S. jobless claims hit a 10-week high last week while producer prices shot up in December, pointing to headwinds for an economy that Federal Reserve Chairman Ben Bernanke said was showing fresh vigor.

COMMODITIES: US corn lifted on supply concern; oil, metal fall
NEW YORK, Jan 13 (Reuters) - U.S. corn and soybean futures rallied to 2-1/2-year highs on Thursday as signs of tightening global supplies boosted prices for a second day, while demand concerns hit oil and metals prices.
"USDA's numbers yesterday, in soybeans in particular, but also in the corn, were surprisingly bullish and presented an alarming supply situation that is now fueling these price gains," said Mario Balletto, analyst with Citigroup.

GLOBAL MARKETS: Euro has best day in six months, US stocks fall
NEW YORK, Jan 13 (Reuters) - The euro surged on Thursday, taking on renewed vigor after better-than-forecast debt auctions by Spain and Italy and a hawkish rate view from the ECB but weak U.S. jobless claims data weighed on U.S. stocks.
"He sent a mild warning to markets that the ECB's assessment on interest rates could change," said Commerzbank economist Michael Schubert.

Alaska to shut oil pipe this weekend for bypass
NEW YORK, Jan 13 (Reuters) - Alaska's main oil pipeline will shut for 36 hours over the weekend to install a bypass aimed at restoring oil shipments to full volumes after the line was shut following a leak last week, its operator said on Thursday.
Crude flow was 320,000 barrels per day on Thursday, about half of normal levels, after operator Alyeska partially resumed shipments earlier this week. The rate fell from a previous 400,000 bpd on Wednesday, as the pipeline drew less oil from storage tanks along its trajectory, said spokeswoman Stefani Bell.

Alaska pipeline throughput falls to 320,000 bpd
ANCHORAGE/NEW YORK, Jan 13 (Reuters) - Throughput of crude on the Trans Alaska Pipeline System fell to 320,000 barrels per day on Thursday, down from 400,000 bpd on Wednesday, said Stefani Bell, a member of the Joint Information Command responding to an oil leak last week on the 800-mile (1,287 km) line.
The drop in throughput from Wednesday's levels came as TAPS drew less crude from storage tanks along the line.

India Panel Recommends Steps To Implement Food Security Bill (Source: CME)
An expert panel on India's proposed Food Security Bill recommended delivering subsidized food grains to the poorest of population in a manner that won't derail the government from attaining its broad fiscal goals. A committee headed by C. Rangarajan, chairman of the prime minister's Economic Advisory Council, proposed assured delivery of wheat at INR2 a kilogram and that of rice at INR3 a kilogram to 46% of rural and 28% of urban population. "The total food grain requirement for the entitled population, buffer stocks and other welfare programs which are treated as mandatory will be 50.96 million tons in 2011 and 51.93 million tons in 2014," the panel said. The government is pushing for a law to subsidize grains to partly shield its voter base from surging inflation in a country where about 40% of the 1.2 billion population lives at $2 a day.
India already provides cheap grains and pulses to nearly 180 million poor or low-income families through a public distribution system that will cost nearly $12 billion in the year through March 2011, accounting for about 1% of gross domestic product and 5% of total government spending.

World commodity prices poised to gain on rising yuan
SINGAPORE, Jan 13 (Reuters) - Beijing's moves to control inflation and trim its trade surplus by allowing the yuan to  strengthen could boost China's commodity imports and lift  global prices, but would likely have little impact on domestic  prices.
China is one of the top consumers of many commodities  including oil, iron ore, copper and soy, and a rise in the  Middle Kingdom's purchasing power would allow it to import  more for the same amount of yuan -- if international prices  are stable.

Fed sees somewhat brighter outlook for U.S. jobs
WASHINGTON, Jan 12 (Reuters) - The battered U.S. labor market may finally be looking up, according to a report from the Federal Reserve that found modestly better job conditions across the country.
The Fed's Beige Book, based on anecdotal reports from the business contacts of the central bank's regional branches, painted an increasingly bright, if cautious, picture.

Japan Nov core machinery orders fall 3.0 pct mth/mth
TOKYO, Jan 13 (Reuters) - Japan's core machinery orders unexpectedly fell 3.0 percent in November from the previous month, down for the third straight month, Cabinet Office data showed on Thursday, in a sign companies are putting off capital spending due to an uncertain economic outlook.
The fall in core orders, a highly volatile data series regarded as a leading indicator of capital spending, compared with the median estimate for a 2.0 percent increase and follows a 1.4 percent drop in October.

S.Korea steps up inflation battle, raises rates
SEOUL, Jan 13 (Reuters) - South Korea raised interest  rates on Thursday, surprising markets, and unveiled a set of  measures to contain mounting inflation as policymakers around  the world battle a surge in prices of food and other  commodities.
Bond prices fell as the rate move prompted traders to  price in more tightening by the central back this year than  they had earlier expected. A majority of analysts in a Reuters  survey had believed the central bank would leave rates  unchanged on Thursday but hike them next month.

PRECIOUS-Gold sags as euro zone debt fears recede
LONDON, Jan 13 (Reuters) - Gold fell on Thursday, pulling back from the previous session's one-week highs, as a series of successful euro zone bond auctions erased some safe-haven demand for the metal, although consumer demand remained fairly buoyant.
Palladium nudged at 10-year highs above $800 an ounce, having risen by 8 percent so far this week, driven by expectations of faster global growth, stable investment demand and optimism stemming from the Detroit auto show.

FOREX-Euro edges up after strong Spanish auction
LONDON, Jan 13 (Reuters) - The euro hit a one-month high against the Swiss franc and edged up versus the dollar on Thursday as speculation that measures to tame the euro zone debt crisis may be on their way prompted short covering.
The euro briefly nudged up to the day's high versus the dollar after strong demand at a Spanish government bond auction cooled speculation that debt problems plaguing Greece, Ireland and Portugal will spread to Madrid and beyond.

U.S. corn climbs to 2-½ year high on supply squeeze
SINGAPORE/MADRID, Jan 13 (Reuters) - Chicago corn rose to 2-½ year peaks after a surprisingly sharp cut in U.S. government forecasts for global supply of grains, and soybeans were steady after strong gains in the previous session.
"It is the question of seeing new highs from here as things are tightening in the U.S. and they are going to tighten up supplies across the world," said Adam Davis, a senior commodity analyst at Merricks Capital, a Melbourne-based funds manager that invests in agriculture.

World stocks at 28-month high, bond sales smooth
LONDON, Jan 13 (Reuters) - World stocks climbed to a new 28-month high despite weakness in Europe while the euro held on to the previous session's gains as bond auctions in Spain and Italy went without a hitch.
"It's been successful, the most positive has been reaching the top end of the objective and the bid-to-cover ratio of 2.1 is higher than the previous auction," said Soledad Pellon, an analyst at IG Markets.

Argentine farmers call strike over export policies
BUENOS AIRES, Jan 12 (Reuters) - Argentine farmers will halt grains sales next week to protest government curbs on wheat and corn exports, reviving a conflict that helped lift global prices to record highs in 2008.
Growers in the South American country, a leading source of grains and beef, have been at odds with center-left President Cristina Fernandez for years over export restrictions that they say drive down prices in the local market.

20110114 0859 Soy Oil & Palm Oil Related News.

Soy product futures ended mixed, with soymeal higher on lingering concerns about the future supply of soybeans for crushing, while soyoil drifted lower in step with stumbling crude oil futures. CBOT March soyoil ended 0.16 cents or 0.3% lower at 57.71 cents per pound, and March soymeal traded $2.10 or 0.6% higher at $383.60 a short ton. (Source: CME)

Palm bounces on USDA report showing tight oilseed supply
KUALA LUMPUR, Jan 13 (Reuters) - Malaysian crude palm oil  bounced from three-week lows hit the previous day  after key report showed a deeper-than-expected cut for U.S.  soy stocks, signalling food demand was still strong
"The palm oil market has stopped its correction for the  moment. It remains to be seen if this signals the start of a  new rally or a pause before the market retraces again," said a  trader with a foreign commodities brokerage.

Argentina sees soy below 50 mln T, wheat 14 mln T
BUENOS AIRES, Jan 12 (Reuters) - Argentina's government sees 2010/11 soybean production coming in below 50 million tonnes, down from a previous estimate of 52 million tonnes, as dry conditions take a toll on the crop, Agriculture Deputy Secretary Oscar Solis said on Wednesday,
Asked whether soy output would fall below 50 million tonnes, Solis said "for certain." But he did not give a specific forecast, saying it was too early to know how dry conditions would impact soy yields.