Soy product futures bounce in unison with soybeans, managing to recover from choppy price action that saw prices trade in both positive and negative territory. The market was a bit cautious ahead of Wednesday's crop reports, but strong world vegoil demand supported soyoil, while frigid Midwest temperatures spur talk of increased soymeal feed usage, analysts say. CBOT March soyoil ended 0.36c or 0.6% higher at 58.77c per pound, and March soymeal traded $3.30 or 0.9% higher at $385.70 a short ton. (Source: CME)
Palm oil recovers on tight supply concerns
KUALA LUMPUR, Feb 8 (Reuters) - Malaysian palm oil reversed losses as traders focused on prospects of tighter supplies after heavy rains and floods curbed production.
"Supplies are looking quite tight from January when the weather was at its worst and we could see further declines in February when countries like China restock," said a trader with a foreign commodities brokerage in Kuala Lumpur.
Brazil soy crop views rise into record territory
SAO PAULO, Feb 7 (Reuters) - Forecasts of Brazil's new soybean crop that recently started early harvest are increasingly being pushed into record territory by analysts based on improving yields from good rains.
Analysts Celeres on Monday raised its view of the new 2010/11 crop to a record 69.8 million tonnes, up from 68.1 million forecast in January due to improving yields following regular and plentiful rains over the past few months.
Rains benefit driest Argentine farming areas
BUENOS AIRES, Feb 7 (Reuters) - Rains over the last day in Argentina replenished soils and rejuvenated soy crops in farming areas where dryness had lingered, an agricultural meteorologist said Monday.
Heavier rainfall since mid-January has eased the impact of several months of dry weather linked to La Nina, but many crop analysts have lowered their forecasts for soy production to below 50 million tonnes.
Wednesday, February 9, 2011
Tuesday, February 8, 2011
20110208 1808 FCPO EOD Daily Chart Study.
Bollinger band reading : pullback correction range bound upside biased.
MACD Histrogram : getting higher, buyer taking small exposure.
Support : 3850, 3820, 3800 level.
Resistance : 3900, 3920, 3950 level.
Comment :
FCPO eased lower in earlier trade but managed to closed recorded small gain with better volume transacted as flood condition in producing states started to improve while soy oil traded higher after overnight lower soy oil price closing. Market opened gap down and tested near support level followed by news on market survey showing a 6 month low stock level pushed price to recovered to closed near the high of the day.
Daily chart formed an up bar candle with lower shadow positioned near upper Bollinger band level with the bandwidth turning outwards. Reading wise, market is having pullback correction 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.
20110208 1719 FKLI EOD Daily Chart Study.
Bollinger band reading : correction range bound little downside biased.
MACD Histrogram : recovering, seller realising profit.
Support : 1530, 1515, 1500 level.
Resistance : 1540, 1550, 1565 level.
Comment :
FKLI closed recorded gain with lower volume changed hand doing 6.5 points discount compare to cash market while regional market closed mix and overnight U.S. market continue to trade firmer.
Daily chart formed a doji bar candle with positioned near middle Bollinger band resistance level with the bandwidth started to turned inwards suggesting a correction range bound little downside biased 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.
FUTURES CORNER 祝大家 : 新年快樂, 恭喜发财, 年年有余 !
FUTURES CORNER 祝大家 : 新年快樂 恭喜发财 年年有余 !
FUTURES CORNER WISHING ALL : HEALTH, WEALTH, PROSPEROUS AND HAPPY CHINESE NEW YEAR !
20110208 0943 Global Economic Related News.
Indonesia: Economy grows at fastest pace in six years
Indonesia’s economy grew at the fastest annual pace in six years last quarter, adding to the case for the central bank to raise interest rates further as inflation accelerates. GDP increased 6.9% y-o-y in the three months through December, beating the 6.3% median estimate. The absence of a harvest led to a 1.4% economic contraction q-o-q. Private consumption contributed 2.7 ppt to GDP growth in 2010, while investment accounted for about 2 ppt. Consumer confidence rose in January m-o-m, with a central bank index climbing 4.6 points to 113.9, the highest level since August 2009. Consumer-price growth accelerated to 7.02% in January, from 6.96% in December. (Bloomberg)
India: Government predicts fastest economic growth since 2008
India’s government predicted the economy will expand 8.6% y-o-y in the year ending 31 March, the most in three years, supporting the central bank’s case for raising interest rates further after the steepest increases in Asia. Reserve Bank of India (RBI) on 25 Jan raised the key repurchase rate by 0.25% to a two-year high of 6.5% and boosted the nation’s inflation forecast. The central bank said India’s benchmark wholesale-price inflation rate may be at 7% by 31 March, more than the 5.5% earlier estimate. The gauge stood at 8.43% in December. RBI maintained their growth projection for the current financial year at 8.5% with an “upward bias.” (Bloomberg)
Australia: Retail sales rise less than forecast
Australian retail sales rose less than economists expected in December, sending the currency lower as consumers spent less at department stores and more on clothing and footwear. Sales advanced 0.2% over the period incorporating Christmas, after a revised 0.4% gain in November. That was less than the median forecast for a 0.5% increase. Spending on clothing and footwear climbed 2.7% and consumers spent 1.5% more on household goods. They spent 1.2% less at department stores. Retail sales, adjusted to remove inflation, fell 0.3% q-o-q in the three months through 31 Dec, matching estimates. (Bloomberg)
EU: German factory orders fell in December
German factory orders fell in December after jumping five times more than economists expected in the previous month. Orders, adjusted for seasonal swings and inflation, dropped 3.4% m-o-m after they surging 5.2% previously. Orders climbed 19.7% y-o-y, when adjusted for working days. Domestic factory orders fell 2.4% in December and foreign orders declined 4.2%, driven by an 8.9% slump in demand from outside the euro area. Orders for investment goods dropped 6.6% after November’s 8.8% gain. Orders for consumer goods eased 0.1% while sales of basic goods rose 0.6%. (Bloomberg)
US: Consumer credit increases for third month
US consumer borrowing rose in December for a third consecutive month, led by the first increase in credit-card charges in more than two years as holiday sales improved. Credit rose by USD6.1bn to USD2.41trn after increasing a revised USD2.02bn in November. Economists projected a USD2.4bn increase. Borrowing remains below the peak of USD2.58trn in July 2008. For all of 2010, credit contracted by 1,6% after falling 4.4% in 2009. Revolving debt rose USD2.32bn in December, the first gain since August 2008. Non-revolving debt rose USD3.78bn, the fifth consecutive increase. (Bloomberg)
Indonesia’s economy grew at the fastest annual pace in six years last quarter, adding to the case for the central bank to raise interest rates further as inflation accelerates. GDP increased 6.9% y-o-y in the three months through December, beating the 6.3% median estimate. The absence of a harvest led to a 1.4% economic contraction q-o-q. Private consumption contributed 2.7 ppt to GDP growth in 2010, while investment accounted for about 2 ppt. Consumer confidence rose in January m-o-m, with a central bank index climbing 4.6 points to 113.9, the highest level since August 2009. Consumer-price growth accelerated to 7.02% in January, from 6.96% in December. (Bloomberg)
India: Government predicts fastest economic growth since 2008
India’s government predicted the economy will expand 8.6% y-o-y in the year ending 31 March, the most in three years, supporting the central bank’s case for raising interest rates further after the steepest increases in Asia. Reserve Bank of India (RBI) on 25 Jan raised the key repurchase rate by 0.25% to a two-year high of 6.5% and boosted the nation’s inflation forecast. The central bank said India’s benchmark wholesale-price inflation rate may be at 7% by 31 March, more than the 5.5% earlier estimate. The gauge stood at 8.43% in December. RBI maintained their growth projection for the current financial year at 8.5% with an “upward bias.” (Bloomberg)
Australia: Retail sales rise less than forecast
Australian retail sales rose less than economists expected in December, sending the currency lower as consumers spent less at department stores and more on clothing and footwear. Sales advanced 0.2% over the period incorporating Christmas, after a revised 0.4% gain in November. That was less than the median forecast for a 0.5% increase. Spending on clothing and footwear climbed 2.7% and consumers spent 1.5% more on household goods. They spent 1.2% less at department stores. Retail sales, adjusted to remove inflation, fell 0.3% q-o-q in the three months through 31 Dec, matching estimates. (Bloomberg)
EU: German factory orders fell in December
German factory orders fell in December after jumping five times more than economists expected in the previous month. Orders, adjusted for seasonal swings and inflation, dropped 3.4% m-o-m after they surging 5.2% previously. Orders climbed 19.7% y-o-y, when adjusted for working days. Domestic factory orders fell 2.4% in December and foreign orders declined 4.2%, driven by an 8.9% slump in demand from outside the euro area. Orders for investment goods dropped 6.6% after November’s 8.8% gain. Orders for consumer goods eased 0.1% while sales of basic goods rose 0.6%. (Bloomberg)
US: Consumer credit increases for third month
US consumer borrowing rose in December for a third consecutive month, led by the first increase in credit-card charges in more than two years as holiday sales improved. Credit rose by USD6.1bn to USD2.41trn after increasing a revised USD2.02bn in November. Economists projected a USD2.4bn increase. Borrowing remains below the peak of USD2.58trn in July 2008. For all of 2010, credit contracted by 1,6% after falling 4.4% in 2009. Revolving debt rose USD2.32bn in December, the first gain since August 2008. Non-revolving debt rose USD3.78bn, the fifth consecutive increase. (Bloomberg)
20110208 0941 Malaysia Corporate Related News.
Economy: Malaysia among top outsourcing destinations. According to the Press Trust of India (PTI), the top three slots in AT Kearney's 2011 Global Services Location Index (GSLI) are occupied by three Asian countries: India, China and Malaysia. The 3 countries have enjoyed the top 3 rankings since the inception of the GLSI in 2003, demonstrating "remarkable staying power, thanks to their deep talent pools and cost advantages". India remains the favourite back-office of the world thanks to its "first-mover advantage" and deep skill base, as per global management consulting firm AT Kearney's ranking of the best outsourcing destinations. (Source: Business Times)
Economy: Cuepacs appeals for minimum wage policy in civil service. Cuepacs is appealing to the government to implement a minimum wage policy in the civil service, which it believes is a crucial move to assist civil servants cope with the rising cost of living. Its president Datuk Omar Osman said the current salary of the workers in the support group was below the poverty line of RM720 a month. Those in Grade 1 to Grade 16 in the Support Group II are starting at RM647per month, which is below the poverty line. The basic salary should be at least RM850 or RM920 a month. (Source: Bernama)
PLUS’ associate company inks concession agreement in Gujarat, India
PLUS Expressway’s 26%-owned Indian associate company, Jetpur Smonath Tollways Ltd (JSTL), and the National Highway Authority of India, have signed a concession agreement (CA) for a 123km road project in Gujarat India. The CA requires JSTL to design, build, finance, operate and transfer a four-lane Jetpur-Somnath Section NH-8D road. JSTL is a joint-venture between PLUS and IDFC Projects Ltd. The concession is for a 30- year period while road construction works is for 30 months. (MalaysianReserve)
South Africa among new sources of coal supply for TNB
South Africa is among the sources of new coal supply for Tenaga Nasional (TNB) to ease the current shortage, following the floods in Queensland, Australia. Queensland has served as TNB’s traditional supply market. “The situation in Australia has affected us to a certain extent. Some of our suppliers in Australia cannot deliver the coal to us due to the flooding in Queensland,” said TNB president and CEO Datuk Seri Che Khalib Mohamad Noh. “What are we doing now is buying coal from all over the world, especially from South Africa,” he added. Che Khalid had earlier signed a memorandum of understanding (MoU) on behalf of TNB with Reseau de Transport d’ Electricite of France on technology transfers. He also said is looking at the possibility of securing a bigger supply from Indonesia, adding that company officials would be going to the country to negotiate. (FinancialDaily)
Agro Asia offers to buy Premium Nutrient’s subsidiaries
Premium Nutrients yesterday received an offer from Agro Asia Pacific Ltd to buy three of its subsidiaries for a total of RM117.9m. The three companies represent its core business. Agro Asia is part of Goodhope Asia Holdings Ltd of Singapore, a holding company with business interests in the South and Southeast Asian region. Premium Nutrients said it will deliberate on the terms of the offer. (BT)
Wilmar to invest in Indonesia
Singapore’s Wilmar, the world’s largest listed palm oil firm, will invest USD900m or RM2,736m (USD1 = RM3.04) to build factories producing products from palm oil in Indonesia, an Indonesian government minister said on Monday. “Wilmar will build six factories of CPO end products such as soap and margarine. The company will start to build in the first quarter this year,” said Minister of Industry M.S Hidayat. (BT)
QSR buys more of Al-‘ Aqar REITs
QSR Brands has increased its interest Al-‘ Aqar KPJ REITs to 4.77m shares by acquiring an additional 2.82m units of the hospital REIT in July last year and on 31 Jan this year. The 4.77m shares cost QSR a total of RM5.11m. In its rationale for the purchase, QSR said it would have a return on investment (ROI) of about 7.3% as against the current fixed deposit interest rate of about 2.5% to 3%. (FinancialDaily)
Carrefour wins appeal
Carrefour Malaysia seems to have full control of its business here following the Court of Appeal's ruling to overturn an injunction granted to its Malaysian minority shareholder. The judgment enables Carrefour to execute the transfer of shares from its 30% Bumiputera partner Hartajaya Harmoni SB. Hartajaya, however, plans to appeal against the decision. Hartajaya had previously requested the High Court to grant an injunction on the transfer of shares, pending the decision of an oppression suit filed by it on 10 Nov last year. (BT)
Ireka secures RM27.6m Vietnam hospital deal
Ireka Corp’s wholly-owned subsidiary, Ireka Engineering and Construction Vietnam Co Ltd, has won a RM27.58m contract from Hoa Lam-Shangri-La Healthcare LLC for the structural works package at a general hospital in Ho Chi Minh City. This will bring Ireka’s current order book to about RM800m, of which about RM430m remains outstanding. (BT)
Economy: Cuepacs appeals for minimum wage policy in civil service. Cuepacs is appealing to the government to implement a minimum wage policy in the civil service, which it believes is a crucial move to assist civil servants cope with the rising cost of living. Its president Datuk Omar Osman said the current salary of the workers in the support group was below the poverty line of RM720 a month. Those in Grade 1 to Grade 16 in the Support Group II are starting at RM647per month, which is below the poverty line. The basic salary should be at least RM850 or RM920 a month. (Source: Bernama)
PLUS’ associate company inks concession agreement in Gujarat, India
PLUS Expressway’s 26%-owned Indian associate company, Jetpur Smonath Tollways Ltd (JSTL), and the National Highway Authority of India, have signed a concession agreement (CA) for a 123km road project in Gujarat India. The CA requires JSTL to design, build, finance, operate and transfer a four-lane Jetpur-Somnath Section NH-8D road. JSTL is a joint-venture between PLUS and IDFC Projects Ltd. The concession is for a 30- year period while road construction works is for 30 months. (MalaysianReserve)
South Africa among new sources of coal supply for TNB
South Africa is among the sources of new coal supply for Tenaga Nasional (TNB) to ease the current shortage, following the floods in Queensland, Australia. Queensland has served as TNB’s traditional supply market. “The situation in Australia has affected us to a certain extent. Some of our suppliers in Australia cannot deliver the coal to us due to the flooding in Queensland,” said TNB president and CEO Datuk Seri Che Khalib Mohamad Noh. “What are we doing now is buying coal from all over the world, especially from South Africa,” he added. Che Khalid had earlier signed a memorandum of understanding (MoU) on behalf of TNB with Reseau de Transport d’ Electricite of France on technology transfers. He also said is looking at the possibility of securing a bigger supply from Indonesia, adding that company officials would be going to the country to negotiate. (FinancialDaily)
Agro Asia offers to buy Premium Nutrient’s subsidiaries
Premium Nutrients yesterday received an offer from Agro Asia Pacific Ltd to buy three of its subsidiaries for a total of RM117.9m. The three companies represent its core business. Agro Asia is part of Goodhope Asia Holdings Ltd of Singapore, a holding company with business interests in the South and Southeast Asian region. Premium Nutrients said it will deliberate on the terms of the offer. (BT)
Wilmar to invest in Indonesia
Singapore’s Wilmar, the world’s largest listed palm oil firm, will invest USD900m or RM2,736m (USD1 = RM3.04) to build factories producing products from palm oil in Indonesia, an Indonesian government minister said on Monday. “Wilmar will build six factories of CPO end products such as soap and margarine. The company will start to build in the first quarter this year,” said Minister of Industry M.S Hidayat. (BT)
QSR buys more of Al-‘ Aqar REITs
QSR Brands has increased its interest Al-‘ Aqar KPJ REITs to 4.77m shares by acquiring an additional 2.82m units of the hospital REIT in July last year and on 31 Jan this year. The 4.77m shares cost QSR a total of RM5.11m. In its rationale for the purchase, QSR said it would have a return on investment (ROI) of about 7.3% as against the current fixed deposit interest rate of about 2.5% to 3%. (FinancialDaily)
Carrefour wins appeal
Carrefour Malaysia seems to have full control of its business here following the Court of Appeal's ruling to overturn an injunction granted to its Malaysian minority shareholder. The judgment enables Carrefour to execute the transfer of shares from its 30% Bumiputera partner Hartajaya Harmoni SB. Hartajaya, however, plans to appeal against the decision. Hartajaya had previously requested the High Court to grant an injunction on the transfer of shares, pending the decision of an oppression suit filed by it on 10 Nov last year. (BT)
Ireka secures RM27.6m Vietnam hospital deal
Ireka Corp’s wholly-owned subsidiary, Ireka Engineering and Construction Vietnam Co Ltd, has won a RM27.58m contract from Hoa Lam-Shangri-La Healthcare LLC for the structural works package at a general hospital in Ho Chi Minh City. This will bring Ireka’s current order book to about RM800m, of which about RM430m remains outstanding. (BT)
20110208 0917 Global Market Related News.
Oil edges down ahead of U.S. inventory data
SINGAPORE, Feb 8 (Reuters) - Oil prices edged down as transit through the Suez Canal remained unaffected by the political turmoil in Egypt, while expectations of a build-up in U.S. crude inventories also weighed.
"Fundamentally, I don't think crude oil supplies are tight. The market needs a correction, and now is the time," he said, adding that prices were up on the political tension in Egypt.
US wheat, soybean rise; corn loses on profit-taking
SEOUL, Feb 8 (Reuters) - U.S. wheat prices rose slightly, extending previous session's gains on news the world's top buyer Egypt had returned to the market and expectations that the USDA would trim its estimate for wheat ending stocks.
"Views of many market participants who are waiting for USDA's supply-demand data on Wednesday are quite bullish about the market," said Kazuhiko Saito, chief commodities analyst at Fujitomi Co Ltd in Tokyo.
Brazil soy crop views rise into record territory
SAO PAULO, Feb 7 (Reuters) - Forecasts of Brazil's new soybean crop that recently started early harvest are increasingly being pushed into record territory by analysts based on improving yields from good rains.
Analysts Celeres on Monday raised its view of the new 2010/11 crop to a record 69.8 million tonnes, up from 68.1 million forecast in January due to improving yields following regular and plentiful rains over the past few months.
Gold barely moves; strong equities cap upside
SINGAPORE, Feb 8 (Reuters) - Gold was barely changed, under pressure from a rally in global stock markets and improved prospects of economic recovery, but inflationary pressures blamed on rising commodity prices could underpin sentiment.
"The outflow in the ETF is a bit negative for gold. We have to see if money flowing into the stock market is temporary or not," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong. "But it seems $1,300 is a very good support."
US Gold upbeat on El Gallo project's initial study
TORONTO, Feb 7 (Reuters) - US Gold said on Monday the results from the preliminary economic assessment of its El Gallo gold-silver project in Mexico were "highly encouraging."
The Toronto-listed exploration company, which is led by industry veteran Rob McEwen, said it plans to update the size of its resource at El Gallo and complete a feasibility study on the project before the end of this year.
Recovery hopes boost Japan stocks; euro steady
SINGAPORE, Feb 8 (Reuters) - Asian shares struggled for traction on Tuesday, despite gains on Wall Street, but Japan's Nikkei touched a 9-month high as hopes of a sustained economic recovery for the rich world encouraged investors to switch funds from emerging to developed markets.
"Retail investors, encouraged by foreigners who are moving into the Japanese market, are now aggressively adding peripheral stocks and those that posted strong earnings," said Mitsushige Akino, a fund manager at Ichiyoshi Investment Management.
OIL: Crude oil steady as Egypt concerns ease
PERTH, Feb 8 (Reuters) - U.S. crude oil futures were steady on Tuesday, as concerns that Egypt's political turmoil would affect oil flows in the region eased and U.S. oil inventories were seen increasing.
Transits through the Suez Canal remained unaffected, although traders were closely watching developments in Egypt, with concerns still remaining that turmoil there might spread across the Middle East, traders said.
COMMODITIES: Mostly lower as fatigue sets into rally
NEW YORK, Feb 7 (Reuters) - Oil ended below $100 a barrel on Monday and metals and most agricultural markets settled off their highs too as investors awaited signs of fresh demand to extend the commodities rally.
"We may be getting to the point where there is a little bit too much fund enthusiasm," said Bill O'Neill, an advisor to investors in industrial and precious metals.
GLOBAL MARKETS: Recovery hopes boost Asia stocks; Oil steady
SINGAPORE, Feb 8 (Reuters) - Asian shares edged higher on Tuesday, with Japan's Nikkei hitting a nine-month peak on hopes of a sustained economic recovery for the developed world.
Oil was steady after sharp falls in the previous session, as concerns about unrest in Egypt affecting global supplies eased and investors turned their attention to rising U.S. inventories.
Korea's Lee Proposes Food-Crisis Task Force (Source: CME)
South Korean President Lee Myung-bak called for a task force to help secure a stable supply of food amid growing concerns about global shortages and rising prices. While Mr. Lee linked the need for action to possible food shortages triggered by climate change, his comments on Monday reflect concerns in South Korea over global food-price volatility, given that the country imports around 70% of its food. "Chances are growing that the whole world will suffer a food crisis due to climate changes," he said. "We need to be prepared and work out a strategy on agricultural and fishery products." The president also said the government and private sector should set up an organization to study ways to secure a stable supply of food.
Reflecting higher prices of agricultural and meat products, as well as surging global prices of oil and other commodities, South Korea's consumer prices rose 4.1% year-to-year in January, breaching 4% for the first time since October and topping the Bank of Korea's target band of between 2% and 4%. A bitterly cold winter in Korea has driven up prices of locally produced food, while a major outbreak of foot-and-mouth disease pushed up prices of pork and beef to records. With more than 100 confirmed cases since late November -- the worst outbreak in the country's history -- authorities have sought to control spread of the disease by killing almost three million of the nation's 10 million swine and nearly 150,000 of its three million cattle.
In response to surging pork prices, the government said late last month that it will remove a 25% tariff on imported pork until the end of June. It also unveiled a package of inflation-fighting measures on Jan. 13 that included a reduction in tariffs on food products such as imported milk powder and coffee beans. Across Asia, bad weather, more-affluent populations and underinvestment in agriculture have pushed up prices of products including wheat, rice and onions in India, chilies in Indonesia and water spinach in China. In response to the price pressures, India last month extended bans on the export of lentils and cooking oil. It also struck a deal with Pakistan to import 1,000 tons of onions, as prices have skyrocketed after severe floods.
China and several countries in the Middle East have instituted or strengthened price controls. Indonesia has been encouraging its citizens to plant chilies to boost supply. Inflation is now South Korea's top economic concern and many economists expect the central bank to increase borrowing costs at its rate-review meeting on Friday, following a surprise rate increase in January, in an effort to keep inflation under control. Young Sun Kwon, an economist at Nomura, said it is a close call but he expects an increase of 0.25 percentage point. "Higher inflation expectations are set to broadly feed into goods and services price changes, beyond the run-up in food and energy prices we have already seen," he said.
Reports suggest North Korea is also experiencing food-price surges, and in a rare report Monday the state news agency noted United Nations Food and Agriculture Organization data showing global foodstuff prices surged 3.4% to a record in the December-January period. The state-run Korean Central News Agency mostly sticks to verbal attacks on the South, the U.S. and Japan.
US payrolls barely grow, but jobless rate plummets
WASHINGTON, Feb 4 (Reuters) - The U.S. economy added a meager 36,000 jobs in January, far less than expected, as severe snow storms slammed large parts of the nation, but the unemployment rate fell to its lowest level since April 2009.
Despite the conflicting signals in the Labor Department's report on Friday, economists agreed a job market recovery was proceeding apace, if not gaining speed.
India on track to grow 8.6 pct this fiscal year
NEW DELHI, Feb 7 (Reuters) - India's economy is expected to grow at 8.6 percent in the fiscal year that ends in March, the government said on Monday, powered by expansion in the services sector and roughly in line with market forecasts.
Last week, Prime Minister Manmohan Singh said high inflation was a serious risk to growth momentum, underscoring the worries of policymakers about headline inflation above 8.4 percent.
PRECIOUS-Gold holds near $1,350/oz after first weekly rise
LONDON, Feb 7 (Reuters) - Gold held near $1,350 an ounce in Europe on Monday after the metal's first weekly rise this year supported investor confidence in the metal and some Asian demand returned as the Lunar New Year holiday approached its end.
A more optimistic view of the global economic outlook, which is lifting demand for higher-risk, higher-yielding assets at gold's expense, is continuing to weigh on prices, however.
FOREX-Euro steadies on sovereign buys; dollar rally stalls
LONDON, Feb 7 (Reuters) - The euro steadied against the dollar on Monday, supported by Asian buying after the lunar new year holidays, which helped to counter the dollar-positive effects of Friday's fall in the U.S. unemployment rate.
A rise in January U.S. payrolls was much smaller than expected, but traders concluded the figure was affected by severe snowstorms and instead focused on a sharp drop in the jobless rate.The unemployment rate fell to 9.0 percent from 9.8 percent in November, marking its biggest two-month decline since 1958.
Wheat jumps 1.6 pct on strong demand, harsh U.S. weather
SINGAPORE, Feb 7 (Reuters) - Chicago wheat futures rose 1.6 percent as strong demand led by Egypt's purchase over the weekend and tenders from Iraq and Bangladesh buoyed the market amid concerns over sub-zero temperatures hurting the U.S. winter crop.
"Iraq has tendered for wheat and there is speculation in the market that Iraq will buy more wheat than what it has tendered. There is talk Turkey and Saudi Arabia will issue tenders soon."
Stocks near 29-month highs, copper hits record
LONDON, Feb 7 (Reuters) - World stocks rose hovering near a 29-month high on further signs of global economic recovery, and copper rallied to a record high while U.S. 10-year Treasury yields hit their highest in 10 months.
"At the moment, clients are feeling that any dips can be bought into and the trend is an upwards one, and I can't see that being thrown off course in the short term," said Giles Watts, head of equities at City Index in London.
SINGAPORE, Feb 8 (Reuters) - Oil prices edged down as transit through the Suez Canal remained unaffected by the political turmoil in Egypt, while expectations of a build-up in U.S. crude inventories also weighed.
"Fundamentally, I don't think crude oil supplies are tight. The market needs a correction, and now is the time," he said, adding that prices were up on the political tension in Egypt.
US wheat, soybean rise; corn loses on profit-taking
SEOUL, Feb 8 (Reuters) - U.S. wheat prices rose slightly, extending previous session's gains on news the world's top buyer Egypt had returned to the market and expectations that the USDA would trim its estimate for wheat ending stocks.
"Views of many market participants who are waiting for USDA's supply-demand data on Wednesday are quite bullish about the market," said Kazuhiko Saito, chief commodities analyst at Fujitomi Co Ltd in Tokyo.
Brazil soy crop views rise into record territory
SAO PAULO, Feb 7 (Reuters) - Forecasts of Brazil's new soybean crop that recently started early harvest are increasingly being pushed into record territory by analysts based on improving yields from good rains.
Analysts Celeres on Monday raised its view of the new 2010/11 crop to a record 69.8 million tonnes, up from 68.1 million forecast in January due to improving yields following regular and plentiful rains over the past few months.
Gold barely moves; strong equities cap upside
SINGAPORE, Feb 8 (Reuters) - Gold was barely changed, under pressure from a rally in global stock markets and improved prospects of economic recovery, but inflationary pressures blamed on rising commodity prices could underpin sentiment.
"The outflow in the ETF is a bit negative for gold. We have to see if money flowing into the stock market is temporary or not," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong. "But it seems $1,300 is a very good support."
US Gold upbeat on El Gallo project's initial study
TORONTO, Feb 7 (Reuters) - US Gold said on Monday the results from the preliminary economic assessment of its El Gallo gold-silver project in Mexico were "highly encouraging."
The Toronto-listed exploration company, which is led by industry veteran Rob McEwen, said it plans to update the size of its resource at El Gallo and complete a feasibility study on the project before the end of this year.
Recovery hopes boost Japan stocks; euro steady
SINGAPORE, Feb 8 (Reuters) - Asian shares struggled for traction on Tuesday, despite gains on Wall Street, but Japan's Nikkei touched a 9-month high as hopes of a sustained economic recovery for the rich world encouraged investors to switch funds from emerging to developed markets.
"Retail investors, encouraged by foreigners who are moving into the Japanese market, are now aggressively adding peripheral stocks and those that posted strong earnings," said Mitsushige Akino, a fund manager at Ichiyoshi Investment Management.
OIL: Crude oil steady as Egypt concerns ease
PERTH, Feb 8 (Reuters) - U.S. crude oil futures were steady on Tuesday, as concerns that Egypt's political turmoil would affect oil flows in the region eased and U.S. oil inventories were seen increasing.
Transits through the Suez Canal remained unaffected, although traders were closely watching developments in Egypt, with concerns still remaining that turmoil there might spread across the Middle East, traders said.
COMMODITIES: Mostly lower as fatigue sets into rally
NEW YORK, Feb 7 (Reuters) - Oil ended below $100 a barrel on Monday and metals and most agricultural markets settled off their highs too as investors awaited signs of fresh demand to extend the commodities rally.
"We may be getting to the point where there is a little bit too much fund enthusiasm," said Bill O'Neill, an advisor to investors in industrial and precious metals.
GLOBAL MARKETS: Recovery hopes boost Asia stocks; Oil steady
SINGAPORE, Feb 8 (Reuters) - Asian shares edged higher on Tuesday, with Japan's Nikkei hitting a nine-month peak on hopes of a sustained economic recovery for the developed world.
Oil was steady after sharp falls in the previous session, as concerns about unrest in Egypt affecting global supplies eased and investors turned their attention to rising U.S. inventories.
Korea's Lee Proposes Food-Crisis Task Force (Source: CME)
South Korean President Lee Myung-bak called for a task force to help secure a stable supply of food amid growing concerns about global shortages and rising prices. While Mr. Lee linked the need for action to possible food shortages triggered by climate change, his comments on Monday reflect concerns in South Korea over global food-price volatility, given that the country imports around 70% of its food. "Chances are growing that the whole world will suffer a food crisis due to climate changes," he said. "We need to be prepared and work out a strategy on agricultural and fishery products." The president also said the government and private sector should set up an organization to study ways to secure a stable supply of food.
Reflecting higher prices of agricultural and meat products, as well as surging global prices of oil and other commodities, South Korea's consumer prices rose 4.1% year-to-year in January, breaching 4% for the first time since October and topping the Bank of Korea's target band of between 2% and 4%. A bitterly cold winter in Korea has driven up prices of locally produced food, while a major outbreak of foot-and-mouth disease pushed up prices of pork and beef to records. With more than 100 confirmed cases since late November -- the worst outbreak in the country's history -- authorities have sought to control spread of the disease by killing almost three million of the nation's 10 million swine and nearly 150,000 of its three million cattle.
In response to surging pork prices, the government said late last month that it will remove a 25% tariff on imported pork until the end of June. It also unveiled a package of inflation-fighting measures on Jan. 13 that included a reduction in tariffs on food products such as imported milk powder and coffee beans. Across Asia, bad weather, more-affluent populations and underinvestment in agriculture have pushed up prices of products including wheat, rice and onions in India, chilies in Indonesia and water spinach in China. In response to the price pressures, India last month extended bans on the export of lentils and cooking oil. It also struck a deal with Pakistan to import 1,000 tons of onions, as prices have skyrocketed after severe floods.
China and several countries in the Middle East have instituted or strengthened price controls. Indonesia has been encouraging its citizens to plant chilies to boost supply. Inflation is now South Korea's top economic concern and many economists expect the central bank to increase borrowing costs at its rate-review meeting on Friday, following a surprise rate increase in January, in an effort to keep inflation under control. Young Sun Kwon, an economist at Nomura, said it is a close call but he expects an increase of 0.25 percentage point. "Higher inflation expectations are set to broadly feed into goods and services price changes, beyond the run-up in food and energy prices we have already seen," he said.
Reports suggest North Korea is also experiencing food-price surges, and in a rare report Monday the state news agency noted United Nations Food and Agriculture Organization data showing global foodstuff prices surged 3.4% to a record in the December-January period. The state-run Korean Central News Agency mostly sticks to verbal attacks on the South, the U.S. and Japan.
US payrolls barely grow, but jobless rate plummets
WASHINGTON, Feb 4 (Reuters) - The U.S. economy added a meager 36,000 jobs in January, far less than expected, as severe snow storms slammed large parts of the nation, but the unemployment rate fell to its lowest level since April 2009.
Despite the conflicting signals in the Labor Department's report on Friday, economists agreed a job market recovery was proceeding apace, if not gaining speed.
India on track to grow 8.6 pct this fiscal year
NEW DELHI, Feb 7 (Reuters) - India's economy is expected to grow at 8.6 percent in the fiscal year that ends in March, the government said on Monday, powered by expansion in the services sector and roughly in line with market forecasts.
Last week, Prime Minister Manmohan Singh said high inflation was a serious risk to growth momentum, underscoring the worries of policymakers about headline inflation above 8.4 percent.
PRECIOUS-Gold holds near $1,350/oz after first weekly rise
LONDON, Feb 7 (Reuters) - Gold held near $1,350 an ounce in Europe on Monday after the metal's first weekly rise this year supported investor confidence in the metal and some Asian demand returned as the Lunar New Year holiday approached its end.
A more optimistic view of the global economic outlook, which is lifting demand for higher-risk, higher-yielding assets at gold's expense, is continuing to weigh on prices, however.
FOREX-Euro steadies on sovereign buys; dollar rally stalls
LONDON, Feb 7 (Reuters) - The euro steadied against the dollar on Monday, supported by Asian buying after the lunar new year holidays, which helped to counter the dollar-positive effects of Friday's fall in the U.S. unemployment rate.
A rise in January U.S. payrolls was much smaller than expected, but traders concluded the figure was affected by severe snowstorms and instead focused on a sharp drop in the jobless rate.The unemployment rate fell to 9.0 percent from 9.8 percent in November, marking its biggest two-month decline since 1958.
Wheat jumps 1.6 pct on strong demand, harsh U.S. weather
SINGAPORE, Feb 7 (Reuters) - Chicago wheat futures rose 1.6 percent as strong demand led by Egypt's purchase over the weekend and tenders from Iraq and Bangladesh buoyed the market amid concerns over sub-zero temperatures hurting the U.S. winter crop.
"Iraq has tendered for wheat and there is speculation in the market that Iraq will buy more wheat than what it has tendered. There is talk Turkey and Saudi Arabia will issue tenders soon."
Stocks near 29-month highs, copper hits record
LONDON, Feb 7 (Reuters) - World stocks rose hovering near a 29-month high on further signs of global economic recovery, and copper rallied to a record high while U.S. 10-year Treasury yields hit their highest in 10 months.
"At the moment, clients are feeling that any dips can be bought into and the trend is an upwards one, and I can't see that being thrown off course in the short term," said Giles Watts, head of equities at City Index in London.
20110208 0915 Soy Oil & Palm Oil Related News.
Food price boom puts palm oil on emerging markets' radar
JAKARTA/KUALA LUMPUR, Feb 4 (Reuters) - Palm oil output and stocks already lagging robust demand could come under further strain should the cooking ingredient become the next target for emerging markets seeking to dampen adverse effects of booming world food prices.
As governments from India and Thailand to Egypt act to quell soaring food inflation and public anger, world cooking oil supplies look uncertain as the impact of dry weather and social unrest in the Argentine soy crushing sector lingers.
Soy product futures ended lower, with soyoil futures leading the declines on spillover pressure from crude oil futures. Crude oil influences soyoil due to its use in making renewable fuels. Soymeal futures drifted lower, pulling back from earlier gains as traders took profit on prior gains in the absence of fresh supportive news, analysts said. CBOT March soyoil ended 0.57 cents or 1% lower at 58.41 cents per pound, and March soymeal traded $0.80 or 0.2% lower at $382.40 a short ton. (Source: CME)
Palm ends off 3-yr high on ringgit; weather concerns linger
KUALA LUMPUR, Feb 7 (Reuters) - Malaysian palm oil slipped from three-year highs hit earlier as traders booked some profits on the stronger ringgit, pausing a rally driven by erratic weather curbing output.
"Investors are uncertain about the weather condition, that's why prices went positive and minus. Some of them are liquidating their positions now, but there aren't lots of movements as many people still on (Lunar New Year) holiday," said a trader in Kuala Lumpur.
Malaysian palm deliveries set to pick up, rains still a concern
KUALA LUMPUR, Feb 7 (Reuters) - Malaysian palm oil exports are set to pick up this week as floods recede in a key producing region although heavy rains continue to pound other oil palm growing areas, raising the threat of weaker yields, planters and refiners said on Monday.
Last week, floods in the southern Malaysian state of Johor prevented estates from transporting up to 70,000 tonnes of crude palm oil for processing, which drove prices to a three-year high and triggering a scramble for Indonesian supplies.
India Jan oilmeal exports rise again, may fall in Feb
NEW DELHI, Feb 7 (Reuters) - India's oilmeal exports rose 67 percent in January from a year ago, the seventh straight monthly rise, on good demand from buyers in Japan, Vietnam, South Korea and the European Union, data from a leading trade body showed.
Oilmeal exports from India, Asia's leading supplier of the animal feed, were 15 percent lower month-on-month at 640,960 tonnes on a slowdown in soymeal exports, the Solvent Extractors' Association of India (SEA) said in a statement on Monday.
India 2011 rapeseed output may rise 16.1 pct-trade
NEW DELHI, Feb 5 (Reuters) - India's rapeseed output could jump 16.1 percent in 2011 to 6.85 million tonnes, helped by favourable weather conditions, a leading trade body said, which could mean lower imports of cooking oil by the world's top buyer.
Normal rains over growing areas raised areas under the main winter oilseed crop, and conducive weather conditions during the maturity also improved yields over a year ago, when the country was hit with the worst drought since 1972.
Argentine soy crops get a lift from rains - gov't
BUENOS AIRES, Feb 4 (Reuters) - Recent rains in Argentina's main soy-farming belt have lifted crops as they pass through key growth stages, though dry conditions are lingering elsewhere, the Agriculture Ministry said on Friday.
Heavier rainfall since mid-January has eased the impact of several months of dry weather linked to La Nina, but most crop analysts have lowered their forecasts for soy production to about 50 million tonnes.
JAKARTA/KUALA LUMPUR, Feb 4 (Reuters) - Palm oil output and stocks already lagging robust demand could come under further strain should the cooking ingredient become the next target for emerging markets seeking to dampen adverse effects of booming world food prices.
As governments from India and Thailand to Egypt act to quell soaring food inflation and public anger, world cooking oil supplies look uncertain as the impact of dry weather and social unrest in the Argentine soy crushing sector lingers.
Soy product futures ended lower, with soyoil futures leading the declines on spillover pressure from crude oil futures. Crude oil influences soyoil due to its use in making renewable fuels. Soymeal futures drifted lower, pulling back from earlier gains as traders took profit on prior gains in the absence of fresh supportive news, analysts said. CBOT March soyoil ended 0.57 cents or 1% lower at 58.41 cents per pound, and March soymeal traded $0.80 or 0.2% lower at $382.40 a short ton. (Source: CME)
Palm ends off 3-yr high on ringgit; weather concerns linger
KUALA LUMPUR, Feb 7 (Reuters) - Malaysian palm oil slipped from three-year highs hit earlier as traders booked some profits on the stronger ringgit, pausing a rally driven by erratic weather curbing output.
"Investors are uncertain about the weather condition, that's why prices went positive and minus. Some of them are liquidating their positions now, but there aren't lots of movements as many people still on (Lunar New Year) holiday," said a trader in Kuala Lumpur.
Malaysian palm deliveries set to pick up, rains still a concern
KUALA LUMPUR, Feb 7 (Reuters) - Malaysian palm oil exports are set to pick up this week as floods recede in a key producing region although heavy rains continue to pound other oil palm growing areas, raising the threat of weaker yields, planters and refiners said on Monday.
Last week, floods in the southern Malaysian state of Johor prevented estates from transporting up to 70,000 tonnes of crude palm oil for processing, which drove prices to a three-year high and triggering a scramble for Indonesian supplies.
India Jan oilmeal exports rise again, may fall in Feb
NEW DELHI, Feb 7 (Reuters) - India's oilmeal exports rose 67 percent in January from a year ago, the seventh straight monthly rise, on good demand from buyers in Japan, Vietnam, South Korea and the European Union, data from a leading trade body showed.
Oilmeal exports from India, Asia's leading supplier of the animal feed, were 15 percent lower month-on-month at 640,960 tonnes on a slowdown in soymeal exports, the Solvent Extractors' Association of India (SEA) said in a statement on Monday.
India 2011 rapeseed output may rise 16.1 pct-trade
NEW DELHI, Feb 5 (Reuters) - India's rapeseed output could jump 16.1 percent in 2011 to 6.85 million tonnes, helped by favourable weather conditions, a leading trade body said, which could mean lower imports of cooking oil by the world's top buyer.
Normal rains over growing areas raised areas under the main winter oilseed crop, and conducive weather conditions during the maturity also improved yields over a year ago, when the country was hit with the worst drought since 1972.
Argentine soy crops get a lift from rains - gov't
BUENOS AIRES, Feb 4 (Reuters) - Recent rains in Argentina's main soy-farming belt have lifted crops as they pass through key growth stages, though dry conditions are lingering elsewhere, the Agriculture Ministry said on Friday.
Heavier rainfall since mid-January has eased the impact of several months of dry weather linked to La Nina, but most crop analysts have lowered their forecasts for soy production to about 50 million tonnes.
Wednesday, February 2, 2011
20110202 0943 Global Economic Related News.
U.S: Manufacturing in January grows by most since 2004, reinforcing forecasts the economic recovery will strengthen in 2011. The Institute for Supply Managements factory index rose to 60.8. Readings greater than 50 signal growth. (Source: Bloomberg)
Spain: AA rating affirmed by S&P as pension overhaul welcomed. The outlook remains negative, the rating company said in an e-mailed statement. It expects the country to have met its budget-deficit target of 9.3% of output last year and to approach the 6% objective in 2011, even as its growth forecasts are more pessimistic than the governments. (Source: Bloomberg)
China: Manufacturing growth in January maintains rate pressure. Chinas manufacturing expanded and input costs climbed, underscoring the case for more interest- rate increases to tame inflation pressures in the fastest- growing major economy. A reading of 52.9 for a purchasing managers index released by Chinas logistics federation on its website exceeded the 50 level dividing expansion and contraction. A PMI from HSBC Holdings Plc and Markit Economics rose to 54.5 from 54.4. (Source: Bloomberg)
S. Korea: January Inflation climbs to 4.1% YoY, adds rate pressure. The consumer-price index gained 3.5% YoY in December. Exports surged 46% YoY to a record USD 44.89b in January. (Source: Bloomberg)
Indonesia: May keep rate at record low, tolerating inflation
Indonesia’s central bank may keep interest rates at a record low this week, tolerating inflation that has accelerated to a 21-month high as policy makers seek to avoid attracting more capital inflows. The reference rate will stay at 6.5% when policy makers meet on 4 Feb, according to 16 of 22 economists surveyed by Bloomberg News. Central banks from India to Thailand and South Korea raised borrowing costs in January as inflation accelerates across a region that’s leading the recovery from the 2009 global recession. (Bloomberg) India:
Manufacturing growth accelerated in January
India’s manufacturing growth accelerated and exports climbed the most in nine months, adding to the case for the central bank to extend Asia’s fastest interest-rate increases in the past year to curb inflation. The Purchasing Managers’ Index rose to 56.8 in January from 56.7 in December, HSBC Holdings Plc and Markit Economics said in an e-mailed statement today. A reading above 50 indicates expansion. India’s merchandise exports gained 36.4% in December from a year earlier, the trade ministry said in a statement in New Delhi today. (Bloomberg)
China: Factory output slowed in January
China’s factories slowed a touch in January under the weight of monetary tightening, but input prices rose quickly, keeping the pressure on the government to tackle inflation despite easing growth. The official purchasing managers’ index (PMI) fell to a five-month low of 52.9 in January, the China Federation of Logistics and Purchasing said yesterday, missing the median forecast of 53.5 in a Reuter’s poll. (Bloomberg)
EU: ECB fails to sterilize bond purchases with deposits
The European Central Bank failed to fully neutralize the liquidity created by its bond purchases for the third time since the program began. The Frankfurt-based central bank said today it drained EUR68.2bn (USD93.9bn) from money markets via seven-day term deposits, EUR 8.3bn less than the EUR 76.5bn it intended to absorb. The failure to drain the intended amount today adds further “downside pressure on overnight rates,” said Christopher Rieger, head of fixed-income strategy at Commerzbank AG in Frankfurt. (Bloomberg)
EU: Manufacturing growth quickens to 9-month high
European manufacturing growth was stronger than initially estimated in January, accelerating to the fastest pace in nine months on stronger output in Germany. A gauge of manufacturing in the euro region rose to 57.3 from 57.1 in December, London-based Markit Economics said in an e-mailed report today. That’s the highest since April and above the initially reported 56.9. A reading above 50 indicates growth. In Germany, output growth slowed less than initially estimated, with a gauge at 60.5, down from 60.7. (Bloomberg)
Spain: AA rating affirmed by S&P as pension overhaul welcomed. The outlook remains negative, the rating company said in an e-mailed statement. It expects the country to have met its budget-deficit target of 9.3% of output last year and to approach the 6% objective in 2011, even as its growth forecasts are more pessimistic than the governments. (Source: Bloomberg)
China: Manufacturing growth in January maintains rate pressure. Chinas manufacturing expanded and input costs climbed, underscoring the case for more interest- rate increases to tame inflation pressures in the fastest- growing major economy. A reading of 52.9 for a purchasing managers index released by Chinas logistics federation on its website exceeded the 50 level dividing expansion and contraction. A PMI from HSBC Holdings Plc and Markit Economics rose to 54.5 from 54.4. (Source: Bloomberg)
S. Korea: January Inflation climbs to 4.1% YoY, adds rate pressure. The consumer-price index gained 3.5% YoY in December. Exports surged 46% YoY to a record USD 44.89b in January. (Source: Bloomberg)
Indonesia: May keep rate at record low, tolerating inflation
Indonesia’s central bank may keep interest rates at a record low this week, tolerating inflation that has accelerated to a 21-month high as policy makers seek to avoid attracting more capital inflows. The reference rate will stay at 6.5% when policy makers meet on 4 Feb, according to 16 of 22 economists surveyed by Bloomberg News. Central banks from India to Thailand and South Korea raised borrowing costs in January as inflation accelerates across a region that’s leading the recovery from the 2009 global recession. (Bloomberg) India:
Manufacturing growth accelerated in January
India’s manufacturing growth accelerated and exports climbed the most in nine months, adding to the case for the central bank to extend Asia’s fastest interest-rate increases in the past year to curb inflation. The Purchasing Managers’ Index rose to 56.8 in January from 56.7 in December, HSBC Holdings Plc and Markit Economics said in an e-mailed statement today. A reading above 50 indicates expansion. India’s merchandise exports gained 36.4% in December from a year earlier, the trade ministry said in a statement in New Delhi today. (Bloomberg)
China: Factory output slowed in January
China’s factories slowed a touch in January under the weight of monetary tightening, but input prices rose quickly, keeping the pressure on the government to tackle inflation despite easing growth. The official purchasing managers’ index (PMI) fell to a five-month low of 52.9 in January, the China Federation of Logistics and Purchasing said yesterday, missing the median forecast of 53.5 in a Reuter’s poll. (Bloomberg)
EU: ECB fails to sterilize bond purchases with deposits
The European Central Bank failed to fully neutralize the liquidity created by its bond purchases for the third time since the program began. The Frankfurt-based central bank said today it drained EUR68.2bn (USD93.9bn) from money markets via seven-day term deposits, EUR 8.3bn less than the EUR 76.5bn it intended to absorb. The failure to drain the intended amount today adds further “downside pressure on overnight rates,” said Christopher Rieger, head of fixed-income strategy at Commerzbank AG in Frankfurt. (Bloomberg)
EU: Manufacturing growth quickens to 9-month high
European manufacturing growth was stronger than initially estimated in January, accelerating to the fastest pace in nine months on stronger output in Germany. A gauge of manufacturing in the euro region rose to 57.3 from 57.1 in December, London-based Markit Economics said in an e-mailed report today. That’s the highest since April and above the initially reported 56.9. A reading above 50 indicates growth. In Germany, output growth slowed less than initially estimated, with a gauge at 60.5, down from 60.7. (Bloomberg)
20110202 0942 Malaysia Corporate Related News.
Sunway REIT: Targets RM7b asset value. Sunway REIT Management Sdn Bhd, the manager for Sunway REIT, is looking to make some sizeable and meaningful asset acquisitions in the medium term and plans to expand its asset value to RM7b in the next five to seven years. One of the acquisitions will involve a shopping mall from a third party vendor. (Source: The Star)
CB Industrial: Unit to build mill in Ivory Coast. CB Industrial Product Holdings Bhd's unit Modipalm Engineering Sdn Bhd has secured a contract from Dekel Oil CI SA, worth RM40.3m, to build a mill in Ivory Coast. Modipalm would design, supply and install mechanical and electrical works for 60 tonnes per hour palm oil mill. (Source: Bursa Malaysia)
HSL: Wins contract RM16m.Hock Seng Lee Bhd (HSL) has secured a RM16.2m contract from the Sarawak Industrial Development Ministry for a project in Samarahan Industrial Estate. The project would involve site clearing, earthworks and infrastructure. (Source: The Star)
O&G: Technip-Daewoo group wins Petronas contract. Petroliam Nasional Bhd (Petronas) and its unit, MISC Bhd, have awarded a foreign consortium consisting of French-based Technip SA and South Korean Daewoo Shipbuilding & Marine Engineering Co Ltd, a key engineering contract for a floating liquefied natural gas (FLNG) unit in Malaysia. The contract involves front-end engineering and design (FEED) for a FLNG unit with annual capacity of one million tonnes and is scheduled to be completed by the second half of this year. (Source: The Star)
Plantation: Malaysian refiners eye Indonesian palm oil. Malaysian refiners have been forced to import extra Indonesian crude palm oil (CPO) after floods in a key growing area submerged estates and cut off roads, delaying at least 70,000 tonnes of refined exports to major buyers like China and India. Heavy rain during the weekend covered many estates in Malaysia's No. 2 oil palm growing region of southern Johor, disrupting the supply chain from the estates to the refineries. To meet the shortfall in supply, refiners in Malaysia's key export port of Pasir Gudang in Johor were eyeing Indonesian palm oil stored in floating barges in the Malacca Strait. (Source: Business Times)
Telecommunication: International submarine cable system. Telekom Malaysia (TM) and Japans NTT Communications (NTT Com) signed the agreement for the development of a new USD140m international submarine cable system to enhance Internet communications in the region. The cable system, called Cahaya Malaysia will have six fiber pairs and they would be built at a cost of USD412m. TM will own two fiber pairs, while NTT Com will own the remaining four. (Source: Bernama)
MMC-Gamuda get letter of award for Klang Valley MRT
Gamuda said its joint venture with MMC Corp was appointed project delivery partner by the Government for the implementation of the Klang Valley mass rail project in Malaysia. The MMC Corporation-Gamuda joint venture has received a letter of award from Syarikat Prasarana Negara Bhd (SPNB) to carry out the Klang Valley mass rapid transit (MRT) project. MMC said the scope, terms and conditions of the appointment will be subject to the finalised and executed project agreement between the government and SPNB. The appointment was also subject to the execution of a comprehensive and definitive agreement between the JV partners and SPNB. (BTimes & Financial Daily)
AZRB, Jasa Bakti JV awarded RM125m public housing project
Ahmad Zaki Resources Bhd and Jasa Bakti SB have been awarded a RM125m contract to undertake a public housing project in Kuala Terengganu. AZRB said it had received a letter of acceptance from the Housing and Local Government Ministry to build 1,002 flats under the public housing program (PPR-for rental) in Changang Tiga, Kuala Terengganu. (Financial Daily)
Penang LRT back on track?
The Land and Public Transport Authority is likely to spearhead Penang's proposed light rapid transit system, say sources. The federal government may revive a project to build a light rapid transit (LRT) system for Penang, as part of efforts to reduce traffic congestion nationwide. Business Times has learnt that the scheme is likely to be an expansion of the Government's efforts to improve public transport via projects such as Kuala Lumpur's first mass rapid transit system (MRT) and the proposed light rail service in the Iskandar Development Region in Johor. However, there is no known time-frame attached to this project. (Business Times)
Maybank's BII returns to the black
PT Bank Internasional Indonesia Tbk (BII) recorded a significant turnaround when it reported a net profit of IDR461bn (RM157m) for 2010 compared with a net loss of IDR41bn rupiah (RM13.9 m) posted in 2009. The turnaround was due to greater growth across the core businesses and continuous improvements in all business operations, said Maybank. Maybank is the majority shareholder with a 97.52% equity stake in BII. (Business Times)
SapCrest, Kencana and Petrofac in JV to develop Berantai
Sapura Crest Petroleum (SapCrest), Kencana Petroleum and Petrofac Energy Developments, a unit of Londonlisted Petrofac, has entered into a joint venture (JV) to develop and operate the Berantai field located 150km offshore Terengganu. The contract would be for nine years commencing Jan 31, 2011 with first gas from the project expected by the end of Dec 2011. Separate filings by SapCrest and Kencana to the stock exchange showed that both would have a 25% stake in the joint operating agreement with Petrofac owning the remainder stake. The total development cost including for the subsequent phase, to be incurred collectively by the operating parties, was estimated at this juncture at approximately USD800m, excluding the provision of the FPSO. (StarBiz)
CB Industrial: Unit to build mill in Ivory Coast. CB Industrial Product Holdings Bhd's unit Modipalm Engineering Sdn Bhd has secured a contract from Dekel Oil CI SA, worth RM40.3m, to build a mill in Ivory Coast. Modipalm would design, supply and install mechanical and electrical works for 60 tonnes per hour palm oil mill. (Source: Bursa Malaysia)
HSL: Wins contract RM16m.Hock Seng Lee Bhd (HSL) has secured a RM16.2m contract from the Sarawak Industrial Development Ministry for a project in Samarahan Industrial Estate. The project would involve site clearing, earthworks and infrastructure. (Source: The Star)
O&G: Technip-Daewoo group wins Petronas contract. Petroliam Nasional Bhd (Petronas) and its unit, MISC Bhd, have awarded a foreign consortium consisting of French-based Technip SA and South Korean Daewoo Shipbuilding & Marine Engineering Co Ltd, a key engineering contract for a floating liquefied natural gas (FLNG) unit in Malaysia. The contract involves front-end engineering and design (FEED) for a FLNG unit with annual capacity of one million tonnes and is scheduled to be completed by the second half of this year. (Source: The Star)
Plantation: Malaysian refiners eye Indonesian palm oil. Malaysian refiners have been forced to import extra Indonesian crude palm oil (CPO) after floods in a key growing area submerged estates and cut off roads, delaying at least 70,000 tonnes of refined exports to major buyers like China and India. Heavy rain during the weekend covered many estates in Malaysia's No. 2 oil palm growing region of southern Johor, disrupting the supply chain from the estates to the refineries. To meet the shortfall in supply, refiners in Malaysia's key export port of Pasir Gudang in Johor were eyeing Indonesian palm oil stored in floating barges in the Malacca Strait. (Source: Business Times)
Telecommunication: International submarine cable system. Telekom Malaysia (TM) and Japans NTT Communications (NTT Com) signed the agreement for the development of a new USD140m international submarine cable system to enhance Internet communications in the region. The cable system, called Cahaya Malaysia will have six fiber pairs and they would be built at a cost of USD412m. TM will own two fiber pairs, while NTT Com will own the remaining four. (Source: Bernama)
MMC-Gamuda get letter of award for Klang Valley MRT
Gamuda said its joint venture with MMC Corp was appointed project delivery partner by the Government for the implementation of the Klang Valley mass rail project in Malaysia. The MMC Corporation-Gamuda joint venture has received a letter of award from Syarikat Prasarana Negara Bhd (SPNB) to carry out the Klang Valley mass rapid transit (MRT) project. MMC said the scope, terms and conditions of the appointment will be subject to the finalised and executed project agreement between the government and SPNB. The appointment was also subject to the execution of a comprehensive and definitive agreement between the JV partners and SPNB. (BTimes & Financial Daily)
AZRB, Jasa Bakti JV awarded RM125m public housing project
Ahmad Zaki Resources Bhd and Jasa Bakti SB have been awarded a RM125m contract to undertake a public housing project in Kuala Terengganu. AZRB said it had received a letter of acceptance from the Housing and Local Government Ministry to build 1,002 flats under the public housing program (PPR-for rental) in Changang Tiga, Kuala Terengganu. (Financial Daily)
Penang LRT back on track?
The Land and Public Transport Authority is likely to spearhead Penang's proposed light rapid transit system, say sources. The federal government may revive a project to build a light rapid transit (LRT) system for Penang, as part of efforts to reduce traffic congestion nationwide. Business Times has learnt that the scheme is likely to be an expansion of the Government's efforts to improve public transport via projects such as Kuala Lumpur's first mass rapid transit system (MRT) and the proposed light rail service in the Iskandar Development Region in Johor. However, there is no known time-frame attached to this project. (Business Times)
Maybank's BII returns to the black
PT Bank Internasional Indonesia Tbk (BII) recorded a significant turnaround when it reported a net profit of IDR461bn (RM157m) for 2010 compared with a net loss of IDR41bn rupiah (RM13.9 m) posted in 2009. The turnaround was due to greater growth across the core businesses and continuous improvements in all business operations, said Maybank. Maybank is the majority shareholder with a 97.52% equity stake in BII. (Business Times)
SapCrest, Kencana and Petrofac in JV to develop Berantai
Sapura Crest Petroleum (SapCrest), Kencana Petroleum and Petrofac Energy Developments, a unit of Londonlisted Petrofac, has entered into a joint venture (JV) to develop and operate the Berantai field located 150km offshore Terengganu. The contract would be for nine years commencing Jan 31, 2011 with first gas from the project expected by the end of Dec 2011. Separate filings by SapCrest and Kencana to the stock exchange showed that both would have a 25% stake in the joint operating agreement with Petrofac owning the remainder stake. The total development cost including for the subsequent phase, to be incurred collectively by the operating parties, was estimated at this juncture at approximately USD800m, excluding the provision of the FPSO. (StarBiz)
20110202 0939 Global Market Related News.
OIL: Oil steadies ahead of US inventory data, Egypt supports
SINGAPORE, Feb 2 (Reuters) - Oil steadied near $91 on Wednesday ahead of U.S. inventory data that is expected to show domestic crude stocks rose last week, while the unrest in Egypt continued to support sentiment.
Cargo operations at Egypt's Alexandria and Damietta ports have come to a virtual standstill as widespread unrest keeps key staff from work and throws the economy into turmoil, shipping sources said.
COMMODITIES: Copper, soybeans surge; US crude dips
NEW YORK, Feb 1 (Reuters) - Copper hit record peaks near $10,000 a tonne on Tuesday after data suggesting a pickup in U.S. economic recovery, and soybeans surged to a 30-month top, extending the commodities rally into February.
"Brent is up and U.S. crude is down today because any possible disruption in oil supplies passing through choke points such as the Suez Canal has a greater impact on Brent than U.S. crude," said Joe Possillico at commodity brokers MF Global.
GLOBAL MARKETS:Stocks, euro rally on data as Egypt fears ebb
NEW YORK, Feb 1 (Reuters) - Global stocks jumped on Tuesday in a broad rally spurred by hopes of further economic recovery after strong factory data worldwide, while safe-haven assets such as bonds fell as worries about unrest in Egypt ebbed.
"While skeptics might attribute the recent ascent in stock prices to animal spirits, we believe that fundamentals are the real story behind the market's success," said Jonathan Golub, strategist at UBS in New York.
US crude stocks seen up, distillates down
NEW YORK, Feb 1 (Reuters) - U.S. crude oil inventories are expected to have risen last week on higher imports while colder weather drew down distillate stockpiles, an expanded Reuters poll of analysts showed on Tuesday.
Crude stockpiles were forecast up 2.7 million barrels for the week to Jan. 28 as companies continued seasonal import increases, according to the survey of 14 analysts ahead of weekly U.S. inventory data.
China, India PMIs foreshadow rising inflation
BEIJING/BANGALORE, Feb 1 (Reuters) - Input prices jumped in Chinese and Indian factories in January, adding to pressure from food inflation that the fast-growing economies are already struggling to contain, business surveys showed on Tuesday.
But the purchasing managers' indexes (PMIs) in both countries should also give their governments the confidence to stay the course in monetary tightening, analysts said, with firms reporting a steady expansion of activity.
US factory, spending data support strong growth tone
WASHINGTON, Jan 31 (Reuters) - Factory activity in the U.S. Midwest hit a 22-1/2 year high in January as orders surged and employment prospects brightened, providing a fresh signal that the economy would stay on a solid growth path this year.
Another report on Monday showed consumer spending ended 2010 on a firmer footing, a trend that economists expected to continue as the labor market recovery gains traction.
Commodity prices to increase in 2011 - WTO chief
GENEVA, Jan 31 (Reuters) - Economic recovery will make food, metals and other raw materials more expensive in 2011, the head of the World Trade Organization said on Monday.Addressing a United Nations conference, WTO Director-General Pascal Lamy said the prices of crude oil, copper, gold, corn and soybeans would rise most this year, with less pronounced increases in natural gas, zinc and cattle.
"2011 will see the prices of most commodities rise, as the rise in global GDP bolsters demand, led by emerging economies," the Frenchman said, estimating worldwide economic output would increase 4 percent in 2011.
PRECIOUS-Gold edges higher after January's heavy loss
LONDON, Feb 1 (Reuters) - Gold rose in Europe on Tuesday as the dollar index hit a 12-week low and geopolitical tensions centred on Egypt added risk premium to prices, with Asian demand for coins and bars after January's price drop adding support.
However, the metal is expected to stay under pressure after posting its biggest one-month drop since Dec. 2009 in January as investors' appetite for risk improved, diverting interest from so-called safe havens like gold into higher-yielding assets.
FOREX-Euro hits 2-mth high vs dollar on rate view
LONDON, Feb 1 (Reuters) - The euro rallied to its highest against the dollar in more than two months on Tuesday, boosted by signs that increasing inflation pressures will prompt a much faster rise in euro zone than in U.S. interest rates.
Traders said the latest leg-up for the single currency during the European session was driven by demand from Middle Eastern investors, while Asian names were also seen buying back euro positions sold earlier in the day.
Upbeat PMIs lift stocks; dollar weak
LONDON, Feb 1 (Reuters) - Investors shifted their focus from Middle East turmoil to concentrate on improved economic data and corporate results on Tuesday, lifting global stocks.
"There is confidence in the market as companies are reporting good figures," said Heinz-Gerd Sonnenschein, equity markets strategist at Deutsche Postbank in Bonn.
SINGAPORE, Feb 2 (Reuters) - Oil steadied near $91 on Wednesday ahead of U.S. inventory data that is expected to show domestic crude stocks rose last week, while the unrest in Egypt continued to support sentiment.
Cargo operations at Egypt's Alexandria and Damietta ports have come to a virtual standstill as widespread unrest keeps key staff from work and throws the economy into turmoil, shipping sources said.
COMMODITIES: Copper, soybeans surge; US crude dips
NEW YORK, Feb 1 (Reuters) - Copper hit record peaks near $10,000 a tonne on Tuesday after data suggesting a pickup in U.S. economic recovery, and soybeans surged to a 30-month top, extending the commodities rally into February.
"Brent is up and U.S. crude is down today because any possible disruption in oil supplies passing through choke points such as the Suez Canal has a greater impact on Brent than U.S. crude," said Joe Possillico at commodity brokers MF Global.
GLOBAL MARKETS:Stocks, euro rally on data as Egypt fears ebb
NEW YORK, Feb 1 (Reuters) - Global stocks jumped on Tuesday in a broad rally spurred by hopes of further economic recovery after strong factory data worldwide, while safe-haven assets such as bonds fell as worries about unrest in Egypt ebbed.
"While skeptics might attribute the recent ascent in stock prices to animal spirits, we believe that fundamentals are the real story behind the market's success," said Jonathan Golub, strategist at UBS in New York.
US crude stocks seen up, distillates down
NEW YORK, Feb 1 (Reuters) - U.S. crude oil inventories are expected to have risen last week on higher imports while colder weather drew down distillate stockpiles, an expanded Reuters poll of analysts showed on Tuesday.
Crude stockpiles were forecast up 2.7 million barrels for the week to Jan. 28 as companies continued seasonal import increases, according to the survey of 14 analysts ahead of weekly U.S. inventory data.
China, India PMIs foreshadow rising inflation
BEIJING/BANGALORE, Feb 1 (Reuters) - Input prices jumped in Chinese and Indian factories in January, adding to pressure from food inflation that the fast-growing economies are already struggling to contain, business surveys showed on Tuesday.
But the purchasing managers' indexes (PMIs) in both countries should also give their governments the confidence to stay the course in monetary tightening, analysts said, with firms reporting a steady expansion of activity.
US factory, spending data support strong growth tone
WASHINGTON, Jan 31 (Reuters) - Factory activity in the U.S. Midwest hit a 22-1/2 year high in January as orders surged and employment prospects brightened, providing a fresh signal that the economy would stay on a solid growth path this year.
Another report on Monday showed consumer spending ended 2010 on a firmer footing, a trend that economists expected to continue as the labor market recovery gains traction.
Commodity prices to increase in 2011 - WTO chief
GENEVA, Jan 31 (Reuters) - Economic recovery will make food, metals and other raw materials more expensive in 2011, the head of the World Trade Organization said on Monday.Addressing a United Nations conference, WTO Director-General Pascal Lamy said the prices of crude oil, copper, gold, corn and soybeans would rise most this year, with less pronounced increases in natural gas, zinc and cattle.
"2011 will see the prices of most commodities rise, as the rise in global GDP bolsters demand, led by emerging economies," the Frenchman said, estimating worldwide economic output would increase 4 percent in 2011.
PRECIOUS-Gold edges higher after January's heavy loss
LONDON, Feb 1 (Reuters) - Gold rose in Europe on Tuesday as the dollar index hit a 12-week low and geopolitical tensions centred on Egypt added risk premium to prices, with Asian demand for coins and bars after January's price drop adding support.
However, the metal is expected to stay under pressure after posting its biggest one-month drop since Dec. 2009 in January as investors' appetite for risk improved, diverting interest from so-called safe havens like gold into higher-yielding assets.
FOREX-Euro hits 2-mth high vs dollar on rate view
LONDON, Feb 1 (Reuters) - The euro rallied to its highest against the dollar in more than two months on Tuesday, boosted by signs that increasing inflation pressures will prompt a much faster rise in euro zone than in U.S. interest rates.
Traders said the latest leg-up for the single currency during the European session was driven by demand from Middle Eastern investors, while Asian names were also seen buying back euro positions sold earlier in the day.
Upbeat PMIs lift stocks; dollar weak
LONDON, Feb 1 (Reuters) - Investors shifted their focus from Middle East turmoil to concentrate on improved economic data and corporate results on Tuesday, lifting global stocks.
"There is confidence in the market as companies are reporting good figures," said Heinz-Gerd Sonnenschein, equity markets strategist at Deutsche Postbank in Bonn.
20110202 0938 Soy Oil & Palm Oil Related News.
Soy-product futures soared in unison with soybean, with soyoil propelled by fresh sales to China and strong global vegoil prices. Soymeal, analysts noted, was buoyed by outlooks for increased livestock feed demand as frigid weather is expected to follow a heavy snowstorm in the central US. Reports that soymeal shipments form Argentina ports are delayed due to a strike was also seen providing some underlying strength. CBOT March soyoil ended 1.5% higher at 58.72c/pound while soymeal climbed 2.6% to $390/short ton. (Source: CME)
Thailand to import another 120,000 tonnes palm oil
BANGKOK, Feb 1 (Reuters) - Thailand said on Tuesday it would import an additional 120,000 tonnes of crude palm oil to ease a shortage that has pushed up the cost of meals, on top of 30,000 tonnes already brought in this year from neighbouring Malaysia.
"The oil should be imported by the end of March as we don't want to hurt farmers by importing more oil into the country when domestic supply is due to rise," Deputy Prime Minister Suthep Thaugsuban told reporters.
More Malaysian palm oil delayed on floods, refiners eye Indonesia
KUALA LUMPUR, Feb 1 (Reuters) - Planters in Malaysia have delayed another 30,000 tonnes of palm oil exports for a week as floods continue to cut road access in a key producing area, refiners said on Tuesday.
The delays reported on Tuesday, bring total delayed shipments from the southern Malaysia state of Johor to at least 70,000 tonnes over three days.
Heavy rains at the weekend triggered floods in the Southeast Asian country's No.2 producing region, disrupting the palm oil supply chain from the estates to the refineries.
Rains foster Argentina soy growth, help corn- gov't
BUENOS AIRES, Jan 31 (Reuters) - A second week of rains boosted soy crops in Argentina's top growing region and should help late-planted corn to recover from weeks of dryness, the government said on Monday.
Argentina is the world's No. 3 exporter of soybeans and the top supplier of soyoil and soymeal, but weeks of severe dryness prompted analysts to lower their forecasts for the country's 2010/11 harvest earlier this month.
Rain keeps Brazil soy belt on bumper crop course
SAO PAULO, Jan 31 (Reuters) - Moderate rainfall fell over the weekend and should continue through this week over most of Brazil's soybean belt, which is inching closer to a bumper harvest that should pick up speed through February, meteorologists Somar said on Monday.
Producers are beginning early harvest of short cycle beans in a handful of regions in No. 1 soy producer state Mato Grosso and No. 2 Parana, but widespread harvesting will not get underway in these early harvesting states until March-April.
Thailand to import another 120,000 tonnes palm oil
BANGKOK, Feb 1 (Reuters) - Thailand said on Tuesday it would import an additional 120,000 tonnes of crude palm oil to ease a shortage that has pushed up the cost of meals, on top of 30,000 tonnes already brought in this year from neighbouring Malaysia.
"The oil should be imported by the end of March as we don't want to hurt farmers by importing more oil into the country when domestic supply is due to rise," Deputy Prime Minister Suthep Thaugsuban told reporters.
More Malaysian palm oil delayed on floods, refiners eye Indonesia
KUALA LUMPUR, Feb 1 (Reuters) - Planters in Malaysia have delayed another 30,000 tonnes of palm oil exports for a week as floods continue to cut road access in a key producing area, refiners said on Tuesday.
The delays reported on Tuesday, bring total delayed shipments from the southern Malaysia state of Johor to at least 70,000 tonnes over three days.
Heavy rains at the weekend triggered floods in the Southeast Asian country's No.2 producing region, disrupting the palm oil supply chain from the estates to the refineries.
Rains foster Argentina soy growth, help corn- gov't
BUENOS AIRES, Jan 31 (Reuters) - A second week of rains boosted soy crops in Argentina's top growing region and should help late-planted corn to recover from weeks of dryness, the government said on Monday.
Argentina is the world's No. 3 exporter of soybeans and the top supplier of soyoil and soymeal, but weeks of severe dryness prompted analysts to lower their forecasts for the country's 2010/11 harvest earlier this month.
Rain keeps Brazil soy belt on bumper crop course
SAO PAULO, Jan 31 (Reuters) - Moderate rainfall fell over the weekend and should continue through this week over most of Brazil's soybean belt, which is inching closer to a bumper harvest that should pick up speed through February, meteorologists Somar said on Monday.
Producers are beginning early harvest of short cycle beans in a handful of regions in No. 1 soy producer state Mato Grosso and No. 2 Parana, but widespread harvesting will not get underway in these early harvesting states until March-April.
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