Parkson: To accelerate expansion in China. MD Alfred Cheng said the company will open 8 to 9 stores a year through 2013, after opening 5 last year and spend up to RMB500m this year on new stores and remodeling existing outlets. (Source: Malaysian Reserve)
MAS: Offering up to 85% discount for all destinations. Malaysia Airlines (MAS) is offering up to 85% discount to all destinations in conjunction with the 8th edition of the Malaysia Airlines Travel Fair (MATF'11) from Feb 21 to Feb 28. The travel period for the fares is from March 21 to Dec 31. MAS is also offering up to 50% discount for business class seats for all of its destinations for the first time. (Source: Malaysian Reserve)
Healthcare: Medical records online by 2015. At least 20 government hospitals nationwide will be able to serve patients faster by 2015 when medical records are accessible online. However, having a common database for medical records has raised concerns on privacy and confidentiality. (Source: New Straits Times)
Maybank mulling ways to trim stake in BII
Malayan Banking (Maybank) is evaluating proposals on how best to reduce its stake in Bank Internasional Indonesia (BII) to 80% by June this year, its chief said. The Indonesian market regulator has given it until June to meet a 20% free float requirement for BII. Maybank, which held about 97.5% of BII, has already managed to sell less than 1% in the market and is also looking at undertaking private placements, president and chief executive officer Datuk Seri Abdul Wahid Omar said. (BT)
Amway lines up 7 new products, 4 more shops
Amway (Malaysia) Holdings plans to maintain its sales growth momentum of past years through the launch of seven new products, and the opening of between three and four more Amway shops this year. The seven new products will be for the beauty and food supplement categories. Amway Malaysia managing director Low Han Kee said besides its on going efforts to grow its energetic distributor network, globally Amway will be spending a lot of time and resources in developing its information technology (IT) capabilities. Some half a billion dollars (RM1.5tn) have been allocated for its IT initiative. (BT)
Ekuinas to buy stake in education group
Ekuiti Nasional (Ekuinas), a Government-linked private equity fund management company, will acquire a 51% stake in the APIIT/UCTI Education Group for RM102m. A share sale agreement between Ekuinas and Sapura Resources for the controlling stake was completed effective 18 Feb, the former said in a statement yesterday. “This acquisition completes Ekuinas’ fourth investment for 2010 and Ekuinas looks forward to working together with the management in accelerating the growth of the education group with the view to further strengthen its position as a high quality provider of educational excellence among Malaysian students and those from abroad,” it said. (StarBiz)
Berjaya Food plans to open more outlets
Berjaya Food (BFood) sees the current trend of healthy food consumption as an opportunity for its business to expand in the country through its chain of Kenny Rogers Roasters restaurants. BFood has a 100% stake in Berjaya Roasters (M) SB, which operates the chain of Kenny Rogers Roasters restaurants in Malaysia. Chief executive officer Datuk Francis Lee says the group plans to open eight to ten new outlets throughout Malaysia this financial year (ended 30 April 2011), promoting its healthy menus to society. BFood is en route for a listing on Bursa Malaysia's Main Market, scheduled for March, offering 35.84 million shares of 50 sen each, or 25.35% stake in BFood, via the initial public offering (IPO). (StarBiz)
Mizuho gets commercial banking licence
Mizuho Corporate Bank (M) has received the Finance Minister’s approval for its commercial banking licence. The banking group said in a statement yesterday that the licence would enable it to provide a full range of financial services to multinational companies seeking to establish and expand its broad manufacturing base. Mizuho, which received approval from Bank Negara in June 2010, said this was important, in view of the increasing business between Malaysia and other countries, including Japan. “Mizuho is a global financial institution and a leading provider of financial solutions to multinational corporations. We believe our extensive network and presence in more than 30 countries will help to facilitate international trade linkages and investment flows between Malaysia and other parts of the world,” it said. (StarBiz)
Notion VTec targets RM45m net profit for FY11
Hard disk drive component maker Notion VTec forecasts its revenue and net profit to be RM280m and RM45m respectively for the current fiscal year as the company reorganises its production portfolio. The company is also aiming in reducing its exposure to US dollar-denominated sales to 70% from about 90%, a move deemed pivotal to safe guard the exporter’s top line. (FinancialDaily)
Oriented Media in reverse takeover
Beleaguered Oriented Media Group (OMedia) may find a white knight in construction outfit Bina Puri Holdings. It was reported in The Busy Weekly that Bina Puri will be injecting its polyol manufacturing business and power assets in Indonesia into OMedia in exchange for new shares, making Bina Puri the largest shareholder in OMedia, after the reverse takeover (RTO) is concluded. (FinancialDaily)
UMW: Toyota targets 90,000 units sales. Automobile giant UMW Toyota Motor is anticipating nationwide sales to exceed 90,000 units this year to maintain its market share at 15% this year. UMW Toyota's strategy was to launch a series of new models this year, such as the new Lexus CT200h hatchback next week. (Source: The Star)
Ramunia: In talks with Coral Alliance. Ramunia Holdings Bhd is in talks with oil and gas outfit Coral Alliance Sdn Bhd-believed to be linked to Tengku Datuk Ibrahim Petra and Robert Lee, former directors of Petra Energy Bhd- for a possible synergistic tie-up or even an acquisition of the latter. In any case, a joint venture or an acquisition of Coral Alliance by Ramunia will benefit the latter as Coral Alliance is said to be the frontrunner for a hook-up and topside maintenance contract from Petronas. (Source: The Edge Financial Weekly)
Ivory: Secures major tenants for Penang Times Square. Penang-based Ivory Properties Group Bhd has signed up several tenants that will take up sizeable areas in Times Square, along Jalan Datuk Keramat. The shopping centres total tenancy will increase from about 50% now to about 80% by April or May. The new tenants are reputable restaurateurs such as Tao, Ming Garden and Coffee Island. (Source: The Edge Financial Weekly)
Manufacturing: Solutia to invest RM305m on sulfur factory. US-based Solutia Inc is set to invest RM305m to build a new high-tech facility to manufacture insoluble sulfur, a vulcanising agent for critical application in tire industry. It is part of an expansion plan to the current plant operating in Gebeng industrial area here and by doing so, Solutia will double the capacity, making it the worlds largest manufacturing site for insoluble sulfur. (Source: The Star)
EPF: Declares 5.8% dividend for 2010. The Employees Provident Fund (EPF) announced a 5.8% dividend for the year ended Dec 31, 2010, slightly higher than the 5.65% given out in 2009. The RM21.6b dividend payout is the highest in the history and a 11.55% increase compared with the RM19.37b paid out in 2009. (Source: The Edge Financial Daily)
Tuesday, February 22, 2011
20110222 0905 Global Market Related News.
Crude hits 2-yr high, near $94.50 on Libya unrest
TOKYO, Feb 22 (Reuters) - U.S. crude futures extended gains , with the March contract reaching $94.49 per barrel, the highest for any nearby month since October 2008, as concern grew that violence in Libya could lead to wider supply disruptions from the OPEC country.
The March contract, which expires later in the day, stood at $94 per barrel at 0016 GMT, up more than $3 from late New York levels on MondayU.S. markets were closed on Monday for the Presidents Day holiday, so the contract's previous close for regular session trade was Friday's settlement at $86.20.
Oil jumps on Libya unrest; Asia shares fall
SINGAPORE, Feb 22 (Reuters) - Oil prices rose and Asia stock prices fell as markets anxiously watched the unfolding crisis in Libya, with investors turning to safe haven gold which in turn pushed up silver to its highest level in 31 years.
"The market is not reacting much to the decision," said Takeshi Shibasaki, chief financial analyst at Mizuho Securities. "Standard and Poor's has already cut Japan's rating, and separately there already were expectations among participants that Moody's would do something."
U.S. corn, wheat recover as oil, strong demand support
SINGAPORE, Feb 22 (Reuters) - U.S. corn and wheat futures rose, recovering from declines in the last session, buoyed by crude oil prices that strengthened as a result of the unrest in Libya.
"Pretty much all commodities, including grains, are up this morning and oil is certainly the leader," said Brett Cooper, senior manager for markets at FCStone Australia.
Brazil soy harvest to get break from rain
SAO PAULO, Feb 21 (Reuters) - Rains that have been blanketing Brazil's grain belt are breaking up over the main harvesting regions in the south and center-west this week, local forecaster Somar said on Monday.
Brazil's is heading for a bumper soy harvest that is beginning to spread and should peak in March and April. Analysts have been raising forecasts and are seeing the current crop surpassing the record 69 million tonne crop of 2009/10.
Gold slips from 7-wk high; silver hits 31-yr peak
SINGAPORE, Feb 22 (Reuters) - Gold slipped after rising to its highest in seven weeks, but sentiment was still underpinned by deadly unrest in North Africa and the Middle East as well as uncertainty over the future of oil prices, while silver jumped to its strongest level since 1980.
"I think the current situation there is really akin to a keg of dynamite," said Ong Yin Ling, investment analyst at Phillip Futures in Singapore."Whether Gaddafi will be toppled or whether we will witness a revolution, I think the final outcome is still uncertain. But the situation is likely to get worse before it gets better. Going forward (gold) could still remain supported due to the crisis, which is unlikely to be resolved anytime soon."
OIL: Brent crude rises more than $2 on Libya concerns
TOKYO, Feb 22 (Reuters) - Brent crude oil futures rose by more than $2 to as high as $108.18 per barrel from the previous close on continued fears that violence in Libya could lead to wider supply disruptions from the OPEC country.
On Monday, spreading unrest in Libya shut down 6 percent of oil output in Africa's No.3 producer and prompted a number of energy firms to pull out international staff, sending Brent oil prices above $105 a barrel.
COMMODITIES: Oil, gold prices surge on Libyan unrest
LONDON, Feb 21 (Reuters) - Unrest in Libya sparked a rally in oil and gold prices on Monday while a buoyant outlook for industrial metals demand also kept those markets on the boil.
"Libya is a significant producer and exporter of good quality crude oil and threats by the tribal leader to stop production is worrisome," said Christophe Barret, an oil analyst at Credit Agricole Corporate and Investment Bank.
GLOBAL: Asian shares fall; oil, gold rise on Libya unrest
SINGAPORE, Feb 22 (Reuters) - Oil prices rose and Asia stock prices fell on Tuesday as markets watched the growing crisis in Libya, with investors turning to safe haven gold which in turn pushed up silver to its highest level in 31 years.
The single currency also lacked the vigour to break above key resistance after Germany's main ruling party suffered a crushing defeat at a regional election in the city-state of Hamburg on Sunday.
Libya turmoil hits oil, restrains equities
LONDON, Feb 21 (Reuters) - Oil prices charged to a fresh 2-1/2 year high on Monday as traders eyed increasing violence in major producer Libya, feeding fears about rising inflation and restraining gains in equities.
"There is uncertainty about supplies. Markets don't like uncertainty," said Bernard McAlinden investment strategist at NCB Stockbrokers.
Bernanke-Don't blame easy money for capital swings
PARIS, Feb 18 (Reuters) - U.S. Federal Reserve Chairman Ben Bernanke defended easy money policies in advanced economies against the charge they are overheating emerging markets, saying factors such as exchange rate rigidity are also to blame.
Speaking ahead of an economic summit in Paris that will include many critics of the Fed's aggressive bond buying program, Bernanke acknowledged that strong capital flows from advanced economies to emerging markets may be having negative spillover effects.
China factory growth at 7-month low -HSBC flash PMI
BEIJING, Feb 21 (Reuters) - The steady ratcheting-up of monetary tightening has combined with the Lunar New Year holiday to weigh on China's factories in February, even as inflation has continued to accelerate, a survey showed on Monday.
The HSBC flash manufacturing purchasing managers' index (PMI), making its debut, hit 51.5 in February, down from a final reading of 54.5 a month earlier.
WTO issues ruling on China export restraints
WASHINGTON, Feb 18 (Reuters) - The World Trade Organization on Friday issued a confidential preliminary ruling in a landmark case against China's export restrictions on raw materials used to manufacture steel, aluminum and chemical products.
The United States, European Union and Mexico launched the case in 2009, complaining that Chinese export restrictions on minerals such as bauxite and magnesium discriminated against foreign manufacturers and gave an unfair advantage to domestic producers.
PRECIOUS-Gold rises above $1,400/oz as MEast violence spreads
LONDON, Feb 21 (Reuters) - Gold prices rose above $1,400 an ounce on Monday for the first time in nearly seven weeks as violence flared in North Africa and the Middle East, boosting interest in the precious metal as a haven from risk.
Tensions have spread from Egypt and Tunisia, where protests unseated leaders earlier this month, across the Middle East and North Africa, threatening the grip of long-entrenched autocratic leaders.
FOREX-Euro hurt as Middle-East tensions boil over
LONDON, Feb 21 (Reuters) - The euro slipped on Monday as worries stemming from rising tension in North Africa and the Middle East weighed on risk sentiment, although hawkish comments from European Central Bank officials and data offered support.
It lacked the vigour to break above key resistances after Germany's main ruling party suffered a crushing defeat at a regional election in the city-state of Hamburg on Sunday.
Food inflation set to continue - fund manager
DUBAI, Feb 21 (Reuters) - Food inflation is set to continue for some time as populations shift to industrial areas and emerging economies grow, Charles Funnell, a soft commodities trader with Swiss-based fund manager Aisling Analytics, said.
Funnell also said in an interview with Reuters Insider television that sugar importers were struggling to make margins due to high price volatility, and that in his view regulators may move to set "reasonability limits" to calm price swings.
TOKYO, Feb 22 (Reuters) - U.S. crude futures extended gains , with the March contract reaching $94.49 per barrel, the highest for any nearby month since October 2008, as concern grew that violence in Libya could lead to wider supply disruptions from the OPEC country.
The March contract, which expires later in the day, stood at $94 per barrel at 0016 GMT, up more than $3 from late New York levels on MondayU.S. markets were closed on Monday for the Presidents Day holiday, so the contract's previous close for regular session trade was Friday's settlement at $86.20.
Oil jumps on Libya unrest; Asia shares fall
SINGAPORE, Feb 22 (Reuters) - Oil prices rose and Asia stock prices fell as markets anxiously watched the unfolding crisis in Libya, with investors turning to safe haven gold which in turn pushed up silver to its highest level in 31 years.
"The market is not reacting much to the decision," said Takeshi Shibasaki, chief financial analyst at Mizuho Securities. "Standard and Poor's has already cut Japan's rating, and separately there already were expectations among participants that Moody's would do something."
U.S. corn, wheat recover as oil, strong demand support
SINGAPORE, Feb 22 (Reuters) - U.S. corn and wheat futures rose, recovering from declines in the last session, buoyed by crude oil prices that strengthened as a result of the unrest in Libya.
"Pretty much all commodities, including grains, are up this morning and oil is certainly the leader," said Brett Cooper, senior manager for markets at FCStone Australia.
Brazil soy harvest to get break from rain
SAO PAULO, Feb 21 (Reuters) - Rains that have been blanketing Brazil's grain belt are breaking up over the main harvesting regions in the south and center-west this week, local forecaster Somar said on Monday.
Brazil's is heading for a bumper soy harvest that is beginning to spread and should peak in March and April. Analysts have been raising forecasts and are seeing the current crop surpassing the record 69 million tonne crop of 2009/10.
Gold slips from 7-wk high; silver hits 31-yr peak
SINGAPORE, Feb 22 (Reuters) - Gold slipped after rising to its highest in seven weeks, but sentiment was still underpinned by deadly unrest in North Africa and the Middle East as well as uncertainty over the future of oil prices, while silver jumped to its strongest level since 1980.
"I think the current situation there is really akin to a keg of dynamite," said Ong Yin Ling, investment analyst at Phillip Futures in Singapore."Whether Gaddafi will be toppled or whether we will witness a revolution, I think the final outcome is still uncertain. But the situation is likely to get worse before it gets better. Going forward (gold) could still remain supported due to the crisis, which is unlikely to be resolved anytime soon."
OIL: Brent crude rises more than $2 on Libya concerns
TOKYO, Feb 22 (Reuters) - Brent crude oil futures rose by more than $2 to as high as $108.18 per barrel from the previous close on continued fears that violence in Libya could lead to wider supply disruptions from the OPEC country.
On Monday, spreading unrest in Libya shut down 6 percent of oil output in Africa's No.3 producer and prompted a number of energy firms to pull out international staff, sending Brent oil prices above $105 a barrel.
COMMODITIES: Oil, gold prices surge on Libyan unrest
LONDON, Feb 21 (Reuters) - Unrest in Libya sparked a rally in oil and gold prices on Monday while a buoyant outlook for industrial metals demand also kept those markets on the boil.
"Libya is a significant producer and exporter of good quality crude oil and threats by the tribal leader to stop production is worrisome," said Christophe Barret, an oil analyst at Credit Agricole Corporate and Investment Bank.
GLOBAL: Asian shares fall; oil, gold rise on Libya unrest
SINGAPORE, Feb 22 (Reuters) - Oil prices rose and Asia stock prices fell on Tuesday as markets watched the growing crisis in Libya, with investors turning to safe haven gold which in turn pushed up silver to its highest level in 31 years.
The single currency also lacked the vigour to break above key resistance after Germany's main ruling party suffered a crushing defeat at a regional election in the city-state of Hamburg on Sunday.
Libya turmoil hits oil, restrains equities
LONDON, Feb 21 (Reuters) - Oil prices charged to a fresh 2-1/2 year high on Monday as traders eyed increasing violence in major producer Libya, feeding fears about rising inflation and restraining gains in equities.
"There is uncertainty about supplies. Markets don't like uncertainty," said Bernard McAlinden investment strategist at NCB Stockbrokers.
Bernanke-Don't blame easy money for capital swings
PARIS, Feb 18 (Reuters) - U.S. Federal Reserve Chairman Ben Bernanke defended easy money policies in advanced economies against the charge they are overheating emerging markets, saying factors such as exchange rate rigidity are also to blame.
Speaking ahead of an economic summit in Paris that will include many critics of the Fed's aggressive bond buying program, Bernanke acknowledged that strong capital flows from advanced economies to emerging markets may be having negative spillover effects.
China factory growth at 7-month low -HSBC flash PMI
BEIJING, Feb 21 (Reuters) - The steady ratcheting-up of monetary tightening has combined with the Lunar New Year holiday to weigh on China's factories in February, even as inflation has continued to accelerate, a survey showed on Monday.
The HSBC flash manufacturing purchasing managers' index (PMI), making its debut, hit 51.5 in February, down from a final reading of 54.5 a month earlier.
WTO issues ruling on China export restraints
WASHINGTON, Feb 18 (Reuters) - The World Trade Organization on Friday issued a confidential preliminary ruling in a landmark case against China's export restrictions on raw materials used to manufacture steel, aluminum and chemical products.
The United States, European Union and Mexico launched the case in 2009, complaining that Chinese export restrictions on minerals such as bauxite and magnesium discriminated against foreign manufacturers and gave an unfair advantage to domestic producers.
PRECIOUS-Gold rises above $1,400/oz as MEast violence spreads
LONDON, Feb 21 (Reuters) - Gold prices rose above $1,400 an ounce on Monday for the first time in nearly seven weeks as violence flared in North Africa and the Middle East, boosting interest in the precious metal as a haven from risk.
Tensions have spread from Egypt and Tunisia, where protests unseated leaders earlier this month, across the Middle East and North Africa, threatening the grip of long-entrenched autocratic leaders.
FOREX-Euro hurt as Middle-East tensions boil over
LONDON, Feb 21 (Reuters) - The euro slipped on Monday as worries stemming from rising tension in North Africa and the Middle East weighed on risk sentiment, although hawkish comments from European Central Bank officials and data offered support.
It lacked the vigour to break above key resistances after Germany's main ruling party suffered a crushing defeat at a regional election in the city-state of Hamburg on Sunday.
Food inflation set to continue - fund manager
DUBAI, Feb 21 (Reuters) - Food inflation is set to continue for some time as populations shift to industrial areas and emerging economies grow, Charles Funnell, a soft commodities trader with Swiss-based fund manager Aisling Analytics, said.
Funnell also said in an interview with Reuters Insider television that sugar importers were struggling to make margins due to high price volatility, and that in his view regulators may move to set "reasonability limits" to calm price swings.
20110222 0903 Soy Oil & Palm Oil Related News.
Soy Oil Futures reopened today, up 1.02 at 57.50.
Palm down to 4-wk low after China steps up inflation fight
KUALA LUMPUR, Feb 21 (Reuters) - Malaysian palm oil futures fell to a one-month low on concerns demand from China may slow after the government moved to drain cash from the economy and rein in inflation.
"Currently, Malaysia's palm oil market is still lagging but it was moving in tandem with weak overseas markets," said a trader in Kuala Lumpur.
China authorities refuse soy, soyoil import tax cut -paper
BEIJING, Feb 21 (Reuters) - Chinese authorities have reportedly rejected a proposal to cut soy and soyoil import tariffs, according to a local media report.
The China Business News cited one industry source as saying that the proposed reduction had been rejected by authorities in charge of the matter, although the paper did not identify any of them.
India castor seed output seen up 21.8 percent
AHMEDABAD, Feb 19 (Reuters) - India's castor seed output in 2010/11 is likely to rise 21.8 percent to 1.19 million tonnes following higher acreage and increased yield due to a favorable monsoon, a survey by The Solvent Extractors' Association of India (SEA) showed on Saturday.
In 2009/10, the output was 978,000 tonnes, the data showed.
Argentine soy crop seen slightly up on rains-gov't
BUENOS AIRES, Feb 18 (Reuters) - The Argentine government is more upbeat about the country's soy output following recent rains, and sees 2010/11 soy output at above 50 million tonnes, Agriculture Deputy Secretary Oscar Solis said on Friday.
Solis in early January estimated the country's soybean harvest at below 50 million tonnes, but he said he now feels more optimistic as recurrent rainfall in January and February eased the impact of weeks of dryness on soy crops.
Argentine 2010/11 soy output seen above 50 mln T
BUENOS AIRES, Feb 18 (Reuters) - Argentina's 2010/11 soy harvest is seen at above 50 million tonnes, Agriculture Deputy Secretary Oscar Solis told Reuters on Friday.
The Agriculture Ministry has not officially forecast soy output this season, but dryness caused by the La Nina weather phenomenon has prompted many crop analysts to lower estimates for the country's output to below 50 million tonnes.
Rocketing food prices to boost Indonesia downstream palm investment
JAKARTA, Feb 21 (Reuters) - Rising food prices and a government drive to develop Indonesia's commodity processing sector will lure more firms to invest in palm oil products in the world's top maker of the oil, despite erratic power, bad roads and aging ports that complicate the task of processing and moving goods.
Record food prices may have thrown many emerging market nations into a tizzy, but Indonesian producers of the edible oil, used to make everything from biscuits to ice cream, have seen margins rise and are giving the green light to more investments.
Indonesia palm oil output to hit 22mln T in 2011 -IPOB
JAKARTA, Feb 18 (Reuters) - Indonesia's palm oil production is estimated to rise by 7-9 percent in 2011, while global consumption will rise 5 percent annually over the next five years, the Indonesian Palm Oil Board (IPOB) said on Friday.
Maturing plantation areas combined with farmers using better harvesting techniques due to heavy rains, is likely to see output in Indonesia, the world's top palm oil producer, hit 22 million tonnes this year, Derom Bangun, vice chairman at the IPOB told Reuters.
Palm down to 4-wk low after China steps up inflation fight
KUALA LUMPUR, Feb 21 (Reuters) - Malaysian palm oil futures fell to a one-month low on concerns demand from China may slow after the government moved to drain cash from the economy and rein in inflation.
"Currently, Malaysia's palm oil market is still lagging but it was moving in tandem with weak overseas markets," said a trader in Kuala Lumpur.
China authorities refuse soy, soyoil import tax cut -paper
BEIJING, Feb 21 (Reuters) - Chinese authorities have reportedly rejected a proposal to cut soy and soyoil import tariffs, according to a local media report.
The China Business News cited one industry source as saying that the proposed reduction had been rejected by authorities in charge of the matter, although the paper did not identify any of them.
India castor seed output seen up 21.8 percent
AHMEDABAD, Feb 19 (Reuters) - India's castor seed output in 2010/11 is likely to rise 21.8 percent to 1.19 million tonnes following higher acreage and increased yield due to a favorable monsoon, a survey by The Solvent Extractors' Association of India (SEA) showed on Saturday.
In 2009/10, the output was 978,000 tonnes, the data showed.
Argentine soy crop seen slightly up on rains-gov't
BUENOS AIRES, Feb 18 (Reuters) - The Argentine government is more upbeat about the country's soy output following recent rains, and sees 2010/11 soy output at above 50 million tonnes, Agriculture Deputy Secretary Oscar Solis said on Friday.
Solis in early January estimated the country's soybean harvest at below 50 million tonnes, but he said he now feels more optimistic as recurrent rainfall in January and February eased the impact of weeks of dryness on soy crops.
Argentine 2010/11 soy output seen above 50 mln T
BUENOS AIRES, Feb 18 (Reuters) - Argentina's 2010/11 soy harvest is seen at above 50 million tonnes, Agriculture Deputy Secretary Oscar Solis told Reuters on Friday.
The Agriculture Ministry has not officially forecast soy output this season, but dryness caused by the La Nina weather phenomenon has prompted many crop analysts to lower estimates for the country's output to below 50 million tonnes.
Rocketing food prices to boost Indonesia downstream palm investment
JAKARTA, Feb 21 (Reuters) - Rising food prices and a government drive to develop Indonesia's commodity processing sector will lure more firms to invest in palm oil products in the world's top maker of the oil, despite erratic power, bad roads and aging ports that complicate the task of processing and moving goods.
Record food prices may have thrown many emerging market nations into a tizzy, but Indonesian producers of the edible oil, used to make everything from biscuits to ice cream, have seen margins rise and are giving the green light to more investments.
Indonesia palm oil output to hit 22mln T in 2011 -IPOB
JAKARTA, Feb 18 (Reuters) - Indonesia's palm oil production is estimated to rise by 7-9 percent in 2011, while global consumption will rise 5 percent annually over the next five years, the Indonesian Palm Oil Board (IPOB) said on Friday.
Maturing plantation areas combined with farmers using better harvesting techniques due to heavy rains, is likely to see output in Indonesia, the world's top palm oil producer, hit 22 million tonnes this year, Derom Bangun, vice chairman at the IPOB told Reuters.
Monday, February 21, 2011
20110221 1830 FCPO EOD Daily Chart Study.
Bollinger band reading : little downside biased.
MACD Histrogram : getting lower, seller in control.
Support : 3650, 3620, 3550 level.
Resistance : 3700, 3720, 3750 level.
Comment :
Hit 4 week low FCPO closed recorded loss for the 5th consecutive day with lower volume traded as soy oil Friday night closed significantly lower due to China food import tax issue.
Daily chart formed an up doji bar candle positioned nearer to lower Bollinger band with the bandwidth started to expand a little. Chart wise, the reading turned into suggesting a little downside biased market development testing lower support 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.
20110221 1826 FKLI EOD Daily Chart Study.
Bollinger band reading : side way range bound little downside biased.
MACD Histrogram : recovering, seller reducing position.
Support : 1515, 1500, 1485 level.
Resistance : 1530, 1540, 1550 level.
Comment :
FKLI closed recorded gains with improving volume participation doing nearly 4 points discount compare to cash market while regional market closed mixed.
Daily chart formed an up doji bar candle with long lower shadow after market opened gap down, tested lower and recovered upward to closed little above middle Bollinger band level. Technical reading wise, market is likely to trade side way range range bound little downside biased.
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.
20110221 1026 Local & Global Economic Related News.
Malaysia: 2010 GDP expands 7.2%
Malaysia's economy outperformed expectations to chalk up a commendable growth of 7.2%t last year compared with a contraction of 1.7% in 2009, bolstered by a rebound in manufacturing and services as well as brisk exports and imports. The government, which implemented a RM67bn stimulus package two years ago to boost the economy severely affected by the global downturn, had earlier forecast gross domestic product to grow by 5- 6% last year. (BT)
Singapore: To spend SGD6.6bn as elections loom
Singapore will spend SGD6.6bn (USD5.2bn) on benefits including tax cuts and rebates as it strives to ease the burden of inflation ahead of elections due in the next year. The government will hand cash to all adult citizens as a “dividend” from record growth, upgrade homes and invest in improving productivity, Finance Minister Tharman Shanmugaratnam said in the city state’s budget speech. (Bloomberg)
China: Tells banks to set aside bigger reserves to cool inflation
China’s central bank ordered lenders to set aside more money as reserves for the second time this year, draining cash from the financial system to restrain inflation and limit the risk of asset bubbles. Reserve ratios will climb half a percentage point effective 24 Feb, the People’s Bank of China said, in an announcement made after its recent interest-rate increase. (Bloomberg)
Spain: Passes bank law, extends compliance deadline
Spain’s government extended a September deadline for banks to meet core financial targets if the lenders can show they are on track to bolster their capital levels, Finance Minister Elena Salgado said. Banks that “are basically complying” with the government’s strategy and calendar, without meeting the capital requirements by 30 Sept, may be able to extend the deadline by three months, Salgado said. (Bloomberg)
US: House approves Republicans’ USD61bn cut in US spending
The Republican-controlled US House of Representatives voted to cut at least USD61bin in federal spending this year, setting up a budget confrontation with Democrats that threatens a government shutdown. After more than 90 hours of debate, the House decided 235-189 yesterday to send the measure to the Senate. (Bloomberg)
US: Home sales probably fell, durables rose
Home sales probably fell in January, while orders for long-lasting goods climbed, a reminder that housing lags behind manufacturing as the US recovery strengthens, economists said before reports this week. Combined purchases of new and existing homes fell 2% to a 5.5m annual pace, according to the median forecast of economists surveyed. (Bloomberg)
Malaysia's economy outperformed expectations to chalk up a commendable growth of 7.2%t last year compared with a contraction of 1.7% in 2009, bolstered by a rebound in manufacturing and services as well as brisk exports and imports. The government, which implemented a RM67bn stimulus package two years ago to boost the economy severely affected by the global downturn, had earlier forecast gross domestic product to grow by 5- 6% last year. (BT)
Singapore: To spend SGD6.6bn as elections loom
Singapore will spend SGD6.6bn (USD5.2bn) on benefits including tax cuts and rebates as it strives to ease the burden of inflation ahead of elections due in the next year. The government will hand cash to all adult citizens as a “dividend” from record growth, upgrade homes and invest in improving productivity, Finance Minister Tharman Shanmugaratnam said in the city state’s budget speech. (Bloomberg)
China: Tells banks to set aside bigger reserves to cool inflation
China’s central bank ordered lenders to set aside more money as reserves for the second time this year, draining cash from the financial system to restrain inflation and limit the risk of asset bubbles. Reserve ratios will climb half a percentage point effective 24 Feb, the People’s Bank of China said, in an announcement made after its recent interest-rate increase. (Bloomberg)
Spain: Passes bank law, extends compliance deadline
Spain’s government extended a September deadline for banks to meet core financial targets if the lenders can show they are on track to bolster their capital levels, Finance Minister Elena Salgado said. Banks that “are basically complying” with the government’s strategy and calendar, without meeting the capital requirements by 30 Sept, may be able to extend the deadline by three months, Salgado said. (Bloomberg)
US: House approves Republicans’ USD61bn cut in US spending
The Republican-controlled US House of Representatives voted to cut at least USD61bin in federal spending this year, setting up a budget confrontation with Democrats that threatens a government shutdown. After more than 90 hours of debate, the House decided 235-189 yesterday to send the measure to the Senate. (Bloomberg)
US: Home sales probably fell, durables rose
Home sales probably fell in January, while orders for long-lasting goods climbed, a reminder that housing lags behind manufacturing as the US recovery strengthens, economists said before reports this week. Combined purchases of new and existing homes fell 2% to a 5.5m annual pace, according to the median forecast of economists surveyed. (Bloomberg)
20110221 1019 Malaysia Corporate Related News.
Khazanah starts restricted tender for Pos Malaysia
Khazanah has entered into the second stage of the divestment process of its 32.2% stake in Pos Malaysia, starting with the restricted tender process for bidders. It said bidding would be on a level playing field whereby the emphasis would be on bidders who would be able to introduce sound strategies and business plans sustainable to bring the postal entity to the next level of growth. (Financial Daily)
Johor Corp selling land to repay part of debt
Johor Corp will sell a parcel of land it owns in Johor that is worth more than RM2bn as part payment for the RM3.6bn debt due July 2012, according to president and CEO Kamaruzzaman Abu Kassim. The land is located within parts of Johor Baru that were earmarked for development under the RM1.8bn Johor Baru city centre transformation plan. Kamaruzzaman’s statement indicated a change in JCorp’s strategy as the original plan was to refinance the RM3.6bn debt rather than selling assets to repay the obligation. (StarBiz)
Ramunia eyeing RM300m worth of contracts
Ramunia Holdings is eyeing contracts worth RM300m this year as part of its strategy to get back on track after settling all its debts last year. The company’s two new fabrication yards in Port Dickson and Sandakan can handle businesses to the tune of RM300m. Ramunia’s current orderbook is negligible at less than RM10m. The company is eyeing to get its fair share of Petronas’ expected 150,000 tonnes steel works contract awards. (Malaysian Reserve)
Emkay to spend RM235m for Cyberjaya project expansion
Emkay Group plans to spend RM235m in the next four years to expand its development projects in Cyberjaya as most of its existing landbank has been developed. Emkay, the private vehicle of Tan Sri Mustapha Kamal Abu Bakar, will acquire some 145 acres of land in Cyberjaya for future projects that would include mixed developments, light industry and commercial developments, and residential properties. The investments will be funded through internally generated funds and bank borrowings. (Malaysian Reserve)
Bionas eyes GBP500m London listing
Bionas Group is looking at raising up to GBP500m from the proposed listing of its subsidiary Bionas Fuel (UK) Ltd on London’s Alternative Investment Market by mid 2011. The Malaysia-based company plants jatropha fruits and produces jatropha additives to make biodiesel. The IPO proceeds will mainly be used to expand its jatropha plantings in Africa. The fruit is not edible, unlike conventional vegetable oils used for biodiesel, and thus does not face the food versus fuel dilemma. Barclays will be handling the IPO. (Business Times)
Berjaya Food eyes RM18.3m in proceeds from IPO
Berjaya Food en-route for listing on the Main Market of Bursa Malaysia next month, expects to raise RM18.3m from its IPO. The operator of Kenny Rogers Roasters restaurants in Malaysia said the proceeds would accrue entirely to the offeror, Berjaya Group.The company listing is scheduled for 8 March with a market capitalization of about RM72.1m. (Bernama)
Khazanah has entered into the second stage of the divestment process of its 32.2% stake in Pos Malaysia, starting with the restricted tender process for bidders. It said bidding would be on a level playing field whereby the emphasis would be on bidders who would be able to introduce sound strategies and business plans sustainable to bring the postal entity to the next level of growth. (Financial Daily)
Johor Corp selling land to repay part of debt
Johor Corp will sell a parcel of land it owns in Johor that is worth more than RM2bn as part payment for the RM3.6bn debt due July 2012, according to president and CEO Kamaruzzaman Abu Kassim. The land is located within parts of Johor Baru that were earmarked for development under the RM1.8bn Johor Baru city centre transformation plan. Kamaruzzaman’s statement indicated a change in JCorp’s strategy as the original plan was to refinance the RM3.6bn debt rather than selling assets to repay the obligation. (StarBiz)
Ramunia eyeing RM300m worth of contracts
Ramunia Holdings is eyeing contracts worth RM300m this year as part of its strategy to get back on track after settling all its debts last year. The company’s two new fabrication yards in Port Dickson and Sandakan can handle businesses to the tune of RM300m. Ramunia’s current orderbook is negligible at less than RM10m. The company is eyeing to get its fair share of Petronas’ expected 150,000 tonnes steel works contract awards. (Malaysian Reserve)
Emkay to spend RM235m for Cyberjaya project expansion
Emkay Group plans to spend RM235m in the next four years to expand its development projects in Cyberjaya as most of its existing landbank has been developed. Emkay, the private vehicle of Tan Sri Mustapha Kamal Abu Bakar, will acquire some 145 acres of land in Cyberjaya for future projects that would include mixed developments, light industry and commercial developments, and residential properties. The investments will be funded through internally generated funds and bank borrowings. (Malaysian Reserve)
Bionas eyes GBP500m London listing
Bionas Group is looking at raising up to GBP500m from the proposed listing of its subsidiary Bionas Fuel (UK) Ltd on London’s Alternative Investment Market by mid 2011. The Malaysia-based company plants jatropha fruits and produces jatropha additives to make biodiesel. The IPO proceeds will mainly be used to expand its jatropha plantings in Africa. The fruit is not edible, unlike conventional vegetable oils used for biodiesel, and thus does not face the food versus fuel dilemma. Barclays will be handling the IPO. (Business Times)
Berjaya Food eyes RM18.3m in proceeds from IPO
Berjaya Food en-route for listing on the Main Market of Bursa Malaysia next month, expects to raise RM18.3m from its IPO. The operator of Kenny Rogers Roasters restaurants in Malaysia said the proceeds would accrue entirely to the offeror, Berjaya Group.The company listing is scheduled for 8 March with a market capitalization of about RM72.1m. (Bernama)
20110221 0913 Global Market Related News.
OIL: U.S. oil prices up over $1/bbl as Libya tension hots up
SINGAPORE, Feb 21 (Reuters) - London April Brent crude and U.S. crude futures rose more than $1 a barrel on Monday as the threat of supply disruptions from OPEC member Libya grew, with protesters calling for the departure of the country's veteran ruler, Muammar Gaddafi.
In Bahrain, opposition leaders met on Sunday to discuss demands they will present to the Gulf Arab country's rulers, as scores of protesters returned to the city centre in Manama after four people were killed on Thursday's night-time raid by riot police.
COMMODITIES: China price policy hits copper, grains; helps gold
NEW YORK/LONDON, Feb 18 (Reuters) - China's efforts to curb inflation undermined copper and grains prices on Friday, and Mideast unrest sent gold up and silver to 31-year tops, while a tug-of-war for control of Ivory Coast's banks sent cocoa to a 14-month peak.
"These Chinese rate moves are just tapping on the brakes. It doesn't stop people from consuming. The Chinese populous will still want their dryers, their washing machines, air conditioners," said Frank Lesh, broker and futures analyst with Future Path Trading in Chicago.
GLOBAL: Asian shares ease as Middle East tensions spread
HONG KONG, Feb 21 (Reuters) - Asian stocks eased and oil prices jumped on Monday as a fresh round of policy tightening from China and spreading unrest in the Middle East encouraged some light profit-taking after last week's solid gains.
"The comments again highlighted that ECB officials are getting antsy about price pressures despite some notable concerns about the health of EU periphery nation's economic performances," said David Watt, strategist at RBC Dominion Securities.
Hoenig: Farm Price Surge May Be A Sign Of Fed-Driven Imbalances (Source: CME)
A farm country Federal Reserve official fretted before congress about the potential impact of monetary policy on the U.S. agricultural sector, which has seen strong growth and big increases in land prices. Federal Reserve Bank of Kansas City President Thomas Hoenig was speaking before the Senate Committee on Agriculture, Nutrition and Forestry in Washington. The central bank's most vociferous opponent of the policy to stimulate the economy via a large Treasury debt buying program, the official has long worried the effort will create financial imbalances. Rapidly rising prices for farm land could be one of those problem areas, in the view of some. "History has taught us that it is nearly impossible to determine how much of the farmland boom may be an unsustainable bubble driven by financial markets and how much results from fundamental changes in demand and supply conditions," Hoenig said in the prepared text of his testimony.
As a result, "it will surprise no one when I say we are watching the market closely, just as we are watching for imbalances emerging elsewhere in the economy. "My nagging concern remains that current distortions in financial markets are increasing the risk that imbalances in asset markets will catch agriculture--and the U.S. economy more generally--by surprise once again," the policymaker said. Thus far, the gains in farmland prices appear to the product of strong profit growth amid big demand for U.S. agricultural products, the official said. He added, agriculture is "benefiting directly from the rebounding economic strength of China and other emerging-market economies, where rapid income growth is driving up food demand." Hoenig expressed concern about the day the Fed does begin to push up interest rates. While agricultural balance sheets look good, a tightening cycle could be difficult to navigate, the central banker warned.
"Rising interest rates often coincide with falling farm revenues and higher capitalization rates, a depressing combination for farmland values," Hoenig said. "Even if crop prices remain high but capitalization rates return to their historic average, farmland values could fall by as much as a third, which most certainly would erode the financial health of the farm sector."
CBRC Says More Loans Needed For Water Projects To Ensure Grain Supply (Source: CME)
China's Banking Regulatory Commission said that banks should extend more loans to water conservation projects and drought-fighting efforts, in order to help ensure grain supply. Supporting water conservation and grain production should be banks' priority in rural lending, it said in a statement on its website. The banking regulator reiterated its financial commitment to the rural areas, shortly after the Ministry of Commerce Thursday released a draft measure on emergency management of food supply and China's central bank said Wednesday it will use monetary policy tools to promote grain production. Beijing has stepped up its fight against inflation, as soaring prices of food and other products have stoked price pressures that pose growing risks to the economy. Government departments have already undertaken several measures to keep food prices in check, such as programs aimed at boosting grain output, and creating reserves of vegetables.
Large- and medium-sized commercial banks should support key and large-sized watering facilities, while Agricultural Bank of China Ltd. should focus on lending to rural irrigation and hydropower construction. Agricultural Development Bank of China should take the responsibility of extending mid- and long-term loans to support medium- and small-sized watering projects. Banks should also expand credit support to manufacturers of seeds, machinery and fertilizers to prepare for spring ploughing and help drought-fighting work, the statement said. Banks facing capital shortage can apply to the central bank for relending. Prices of agricultural commodity futures have gained even faster than retail prices, which are capped by the government, with wheat, rice and sugar futures all hitting record levels recently. Wheat futures on China's Zhengzhou Commodity Exchange have risen around 6% this month due to concerns that prolonged drought may reduce wheat output.
Fed China raises banks' required reserves again
BEIJING, Feb 18 (Reuters) - China's central bank said on Friday that it would once again raise lenders' required reserves by 50 basis points, the second time this year and the eighth official increase since the start of last year.
In a short statement posted on its website, the People's Bank of China said the increase will be effective Feb. 24.
China steel prices seen rising in near term - CISA
SHANGHAI, Feb 18 (Reuters) - Steel prices in the Chinese domestic market will continue rising in the near term thanks to recovering demand and rising raw materials costs, the China Iron & Steel Association (CISA) said on Friday.
CISA said it expected a gradual pick-up in demand at home and abroad, with costs of raw materials such as iron ore, coke and scrap likely to keep surging, pushing steel prices upwards.
PRECIOUS-Gold hits 5-week high as Mideast concerns simmer
LONDON, Feb 18 (Reuters) - Gold hit five-week highs in Europe on Friday and silver its strongest since 1980 as growing unrest in the Middle East lifted interest in precious metals, though another reserve requirement hike from China curbed gains.
Gold's bounce-back after it fell more than 6 percent in January has wrong footed some investors who were waiting for lower price levels to buy into the market, analysts said.
FOREX-Euro slips, ECB data adds to mkt jitters
LONDON, Feb 18 (Reuters) - The euro slipped broadly on Friday on the view that euro zone debt problems will persist and as uncertainty about the cause of a spike in emergency borrowing from the European Central Bank added to market jitters.
The Australian dollar briefly hit a session low against the U.S. dollar after China's central bank raised its bank reserve requirement for the second time this year, following up on an interest rate rise earlier this month as it ratchets up its monetary tightening campaign.
China, oil worries knock equities from highs
LONDON, Feb 18 (Reuters) - World shares fell back from fresh 30-month highs against a background of rising oil prices and new attempts by China to curb its inflation pressures.
"There is just a greater conviction in the more promising outlook in global economic growth," said Mike Lenhoff, chief strategist at wealth manager Brewin Dolphin.
SINGAPORE, Feb 21 (Reuters) - London April Brent crude and U.S. crude futures rose more than $1 a barrel on Monday as the threat of supply disruptions from OPEC member Libya grew, with protesters calling for the departure of the country's veteran ruler, Muammar Gaddafi.
In Bahrain, opposition leaders met on Sunday to discuss demands they will present to the Gulf Arab country's rulers, as scores of protesters returned to the city centre in Manama after four people were killed on Thursday's night-time raid by riot police.
COMMODITIES: China price policy hits copper, grains; helps gold
NEW YORK/LONDON, Feb 18 (Reuters) - China's efforts to curb inflation undermined copper and grains prices on Friday, and Mideast unrest sent gold up and silver to 31-year tops, while a tug-of-war for control of Ivory Coast's banks sent cocoa to a 14-month peak.
"These Chinese rate moves are just tapping on the brakes. It doesn't stop people from consuming. The Chinese populous will still want their dryers, their washing machines, air conditioners," said Frank Lesh, broker and futures analyst with Future Path Trading in Chicago.
GLOBAL: Asian shares ease as Middle East tensions spread
HONG KONG, Feb 21 (Reuters) - Asian stocks eased and oil prices jumped on Monday as a fresh round of policy tightening from China and spreading unrest in the Middle East encouraged some light profit-taking after last week's solid gains.
"The comments again highlighted that ECB officials are getting antsy about price pressures despite some notable concerns about the health of EU periphery nation's economic performances," said David Watt, strategist at RBC Dominion Securities.
Hoenig: Farm Price Surge May Be A Sign Of Fed-Driven Imbalances (Source: CME)
A farm country Federal Reserve official fretted before congress about the potential impact of monetary policy on the U.S. agricultural sector, which has seen strong growth and big increases in land prices. Federal Reserve Bank of Kansas City President Thomas Hoenig was speaking before the Senate Committee on Agriculture, Nutrition and Forestry in Washington. The central bank's most vociferous opponent of the policy to stimulate the economy via a large Treasury debt buying program, the official has long worried the effort will create financial imbalances. Rapidly rising prices for farm land could be one of those problem areas, in the view of some. "History has taught us that it is nearly impossible to determine how much of the farmland boom may be an unsustainable bubble driven by financial markets and how much results from fundamental changes in demand and supply conditions," Hoenig said in the prepared text of his testimony.
As a result, "it will surprise no one when I say we are watching the market closely, just as we are watching for imbalances emerging elsewhere in the economy. "My nagging concern remains that current distortions in financial markets are increasing the risk that imbalances in asset markets will catch agriculture--and the U.S. economy more generally--by surprise once again," the policymaker said. Thus far, the gains in farmland prices appear to the product of strong profit growth amid big demand for U.S. agricultural products, the official said. He added, agriculture is "benefiting directly from the rebounding economic strength of China and other emerging-market economies, where rapid income growth is driving up food demand." Hoenig expressed concern about the day the Fed does begin to push up interest rates. While agricultural balance sheets look good, a tightening cycle could be difficult to navigate, the central banker warned.
"Rising interest rates often coincide with falling farm revenues and higher capitalization rates, a depressing combination for farmland values," Hoenig said. "Even if crop prices remain high but capitalization rates return to their historic average, farmland values could fall by as much as a third, which most certainly would erode the financial health of the farm sector."
CBRC Says More Loans Needed For Water Projects To Ensure Grain Supply (Source: CME)
China's Banking Regulatory Commission said that banks should extend more loans to water conservation projects and drought-fighting efforts, in order to help ensure grain supply. Supporting water conservation and grain production should be banks' priority in rural lending, it said in a statement on its website. The banking regulator reiterated its financial commitment to the rural areas, shortly after the Ministry of Commerce Thursday released a draft measure on emergency management of food supply and China's central bank said Wednesday it will use monetary policy tools to promote grain production. Beijing has stepped up its fight against inflation, as soaring prices of food and other products have stoked price pressures that pose growing risks to the economy. Government departments have already undertaken several measures to keep food prices in check, such as programs aimed at boosting grain output, and creating reserves of vegetables.
Large- and medium-sized commercial banks should support key and large-sized watering facilities, while Agricultural Bank of China Ltd. should focus on lending to rural irrigation and hydropower construction. Agricultural Development Bank of China should take the responsibility of extending mid- and long-term loans to support medium- and small-sized watering projects. Banks should also expand credit support to manufacturers of seeds, machinery and fertilizers to prepare for spring ploughing and help drought-fighting work, the statement said. Banks facing capital shortage can apply to the central bank for relending. Prices of agricultural commodity futures have gained even faster than retail prices, which are capped by the government, with wheat, rice and sugar futures all hitting record levels recently. Wheat futures on China's Zhengzhou Commodity Exchange have risen around 6% this month due to concerns that prolonged drought may reduce wheat output.
Fed China raises banks' required reserves again
BEIJING, Feb 18 (Reuters) - China's central bank said on Friday that it would once again raise lenders' required reserves by 50 basis points, the second time this year and the eighth official increase since the start of last year.
In a short statement posted on its website, the People's Bank of China said the increase will be effective Feb. 24.
China steel prices seen rising in near term - CISA
SHANGHAI, Feb 18 (Reuters) - Steel prices in the Chinese domestic market will continue rising in the near term thanks to recovering demand and rising raw materials costs, the China Iron & Steel Association (CISA) said on Friday.
CISA said it expected a gradual pick-up in demand at home and abroad, with costs of raw materials such as iron ore, coke and scrap likely to keep surging, pushing steel prices upwards.
PRECIOUS-Gold hits 5-week high as Mideast concerns simmer
LONDON, Feb 18 (Reuters) - Gold hit five-week highs in Europe on Friday and silver its strongest since 1980 as growing unrest in the Middle East lifted interest in precious metals, though another reserve requirement hike from China curbed gains.
Gold's bounce-back after it fell more than 6 percent in January has wrong footed some investors who were waiting for lower price levels to buy into the market, analysts said.
FOREX-Euro slips, ECB data adds to mkt jitters
LONDON, Feb 18 (Reuters) - The euro slipped broadly on Friday on the view that euro zone debt problems will persist and as uncertainty about the cause of a spike in emergency borrowing from the European Central Bank added to market jitters.
The Australian dollar briefly hit a session low against the U.S. dollar after China's central bank raised its bank reserve requirement for the second time this year, following up on an interest rate rise earlier this month as it ratchets up its monetary tightening campaign.
China, oil worries knock equities from highs
LONDON, Feb 18 (Reuters) - World shares fell back from fresh 30-month highs against a background of rising oil prices and new attempts by China to curb its inflation pressures.
"There is just a greater conviction in the more promising outlook in global economic growth," said Mike Lenhoff, chief strategist at wealth manager Brewin Dolphin.
20110221 0910 Soy Oil & Palm Oil Related News.
ITS CPO export down 3.2% to 825,180 tonnes for the period of 1~20 Feb 2011.
SGS CPO export up 1.5% to 811,813 tonnes for the period of 1~20 Feb 2011.
CBOT soybean products fell in tandem with soybeans, as a hike in China's bank reserve requirements raised questions about demand. Export demand for soy products has been weakening amid higher prices, an analyst added. March CBOT soyoil fell 3%, or 1.76c, to 56.49 cents per pound. March soymeal slipped 2.9% to $362 per short ton. (Source: CME)
China Mulls Ways To Boost Commodity Imports (Source: CME)
China is considering various ways to increase imports of commodities, including food-related products, a Ministry of Commerce official said. The official's comments reflect a shift seen recently in policy focus towards restocking of state reserves and containment of food-price inflation, rather than the usual focus on the need for self-sufficiency in grains and other staples. Also, the China National Grain & Oil Information Center, a key state-backed grain research agency, acknowledged market speculation that the government is also considering a reduction of import duties on soybean and soyoil. "China is definitely trying to see if we can adopt appropriate policies to enlarge our imports," said the ministry official, who declined to be identified.
Minister for Commerce Chen Deming, in an interview with local magazine Caijing published late last month, didn't mention import tax cuts directly, but left the door open for such actions to "widen the leeway" for an expansion of imports of agricultural commodities and the replenishing of reserve levels of key farm products. "We'll refine import credit and insurance, push for technical improvements in businesses, and widen the leeway for imports of grain, cotton and other commodities, to relieve domestic supply pressures," Chen said. The ministry official on Friday also declined to comment specifically on whether lower import duties are being considered, but the government-backed CNGOIC referred in a report to possible deliberations on two key agricultural products, boosting the credibility of rumors that such specific steps are among the arsenal of measures being actively considered.
"There's market speculation that the government is going to lower the import duties on soybean and soyoil," it said. The government may be considering lowering the import duty for soybeans to 1% from 3% and for soyoil to 5% from 9%, said an analyst with the influential Shanghai JC Intelligence Co. China's soybean imports have been surging due to strong domestic demand, reaching a record 54.8 million metric tons last year. "If it's true, the government's move is a sign of encouragement for more soybean imports," said Monica Tu, the Shanghai JCI analyst. It wouldn't be the first time the government has considered lower import duties on key farm products as part of efforts to curb inflation. In 2008, the government mulled similar tax cuts, including a reduction of the import tax on soyoil to 3%, but backed away as inflation receded following the global financial crisis.
Soyoil imports fell 44% in 2010 due to a months-long trade spat with China's largest supplier, Argentina, but customs data earlier this week showed edible oil imports in January rose 12% from a year earlier to 610,000 tons. Data on January imports of soyoil won't be available until late next week. The reduction of import duties on farm-product imports isn't out of line with expectations, given inflationary pressures, a senior executive with a Western farm lobby said. "They need to lower duties to reduce input costs," and increasing demand for edible oils falls within an expected consumption pattern for a fast-developing country, he said. Soybean and cotton top China's list of agriculture imports by demand, but the list also includes other products like wood, seafood and animal hides, the executive said.
U.S. soy, corn slip ahead of options expiry; wheat steady
SINGAPORE, Feb 18 (Reuters) - Chicago soybean futures fell 0.8 percent and corn lost around half a percent as expiry of March options later in the day pressured the grain markets, which rallied in the last session on higher U.S. weekly exports and news that China was mulling a cut in import tariffs.
"There is Chicago options expiry today, may be some impact on the market, but I would expect trade today to be subdued as it was pretty hectic on Thursday," said Ole Houe, an advisor on agricultural commodities at FCStone Australia.
Palm oil prices dip as traders eye China import tax
JAKARTA, Feb 18 (Reuters) - Malaysian palm oil futures fell reversing earlier gains as they took direction largely from other oil markets and possible food import tax changes in China.
"Some people say this (price fall) has happened because of an increase in palm oil supply, but it wouldn't affect prices this much," said Leonardo Gavaza, an analyst at Bahana Securities.
Argentine soy and corn crops seen steady - exchange
BUENOS AIRES, Feb 17 (Reuters) - Argentina's 2010/11 soy harvest is seen steady at 47.0 million tonnes, while the outlook for corn was held at 19.5 million tonnes, the Buenos Aires Grains Exchange said on Thursday in its weekly report.
Argentina is the world's No. 3 soybean exporter, and severe dryness linked to the La Nina weather anomaly prompted analysts to lower their forecasts for the harvest earlier this season, pushing up prices in international grain markets.
Brazil's No.3 soy state may harvest record crop
SAO PAULO, Feb 17 (Reuters) - Brazil's southernmost state of Rio Grande do Sul may harvest a record soy crop in 2011 after dryness caused by the La Nina anomaly was restricted to few areas, the state's crop agency Emater said on Thursday.
The soy crop of Brazil's No.3 producing state is now projected at 10.39 million tonnes, up from a previous estimate of 9.14 million tonnes.
China mulls import tax cuts to tame food inflation
BEIJING, Feb 17 (Reuters) - China's Ministry of Commerce has asked other ministries to consider potential cuts in import taxes on a range of goods including food, two sources said on Thursday, in a move seen aimed at taming rising inflation.
Speculation on which import duties could be cut reverberated through domestic and overseas agriculture markets. Soy and palm oil prices fell on talk of the possible cuts.
India's trade min: refined vegoil import tax "very fair"
KUALA LUMPUR, Feb 18 (Reuters) - India's Trade Minister said on Friday that import duties on refined edible oils were "very fair", playing down expectations the government will scrap the tax in its annual budget due later this month.
Soaring edible oil prices, owing to erratic weather in key exporters, have prompted some Asian countries to act. Bangladesh slashed import taxes earlier this week and China may be mulling a similar move.
SGS CPO export up 1.5% to 811,813 tonnes for the period of 1~20 Feb 2011.
CBOT soybean products fell in tandem with soybeans, as a hike in China's bank reserve requirements raised questions about demand. Export demand for soy products has been weakening amid higher prices, an analyst added. March CBOT soyoil fell 3%, or 1.76c, to 56.49 cents per pound. March soymeal slipped 2.9% to $362 per short ton. (Source: CME)
China Mulls Ways To Boost Commodity Imports (Source: CME)
China is considering various ways to increase imports of commodities, including food-related products, a Ministry of Commerce official said. The official's comments reflect a shift seen recently in policy focus towards restocking of state reserves and containment of food-price inflation, rather than the usual focus on the need for self-sufficiency in grains and other staples. Also, the China National Grain & Oil Information Center, a key state-backed grain research agency, acknowledged market speculation that the government is also considering a reduction of import duties on soybean and soyoil. "China is definitely trying to see if we can adopt appropriate policies to enlarge our imports," said the ministry official, who declined to be identified.
Minister for Commerce Chen Deming, in an interview with local magazine Caijing published late last month, didn't mention import tax cuts directly, but left the door open for such actions to "widen the leeway" for an expansion of imports of agricultural commodities and the replenishing of reserve levels of key farm products. "We'll refine import credit and insurance, push for technical improvements in businesses, and widen the leeway for imports of grain, cotton and other commodities, to relieve domestic supply pressures," Chen said. The ministry official on Friday also declined to comment specifically on whether lower import duties are being considered, but the government-backed CNGOIC referred in a report to possible deliberations on two key agricultural products, boosting the credibility of rumors that such specific steps are among the arsenal of measures being actively considered.
"There's market speculation that the government is going to lower the import duties on soybean and soyoil," it said. The government may be considering lowering the import duty for soybeans to 1% from 3% and for soyoil to 5% from 9%, said an analyst with the influential Shanghai JC Intelligence Co. China's soybean imports have been surging due to strong domestic demand, reaching a record 54.8 million metric tons last year. "If it's true, the government's move is a sign of encouragement for more soybean imports," said Monica Tu, the Shanghai JCI analyst. It wouldn't be the first time the government has considered lower import duties on key farm products as part of efforts to curb inflation. In 2008, the government mulled similar tax cuts, including a reduction of the import tax on soyoil to 3%, but backed away as inflation receded following the global financial crisis.
Soyoil imports fell 44% in 2010 due to a months-long trade spat with China's largest supplier, Argentina, but customs data earlier this week showed edible oil imports in January rose 12% from a year earlier to 610,000 tons. Data on January imports of soyoil won't be available until late next week. The reduction of import duties on farm-product imports isn't out of line with expectations, given inflationary pressures, a senior executive with a Western farm lobby said. "They need to lower duties to reduce input costs," and increasing demand for edible oils falls within an expected consumption pattern for a fast-developing country, he said. Soybean and cotton top China's list of agriculture imports by demand, but the list also includes other products like wood, seafood and animal hides, the executive said.
U.S. soy, corn slip ahead of options expiry; wheat steady
SINGAPORE, Feb 18 (Reuters) - Chicago soybean futures fell 0.8 percent and corn lost around half a percent as expiry of March options later in the day pressured the grain markets, which rallied in the last session on higher U.S. weekly exports and news that China was mulling a cut in import tariffs.
"There is Chicago options expiry today, may be some impact on the market, but I would expect trade today to be subdued as it was pretty hectic on Thursday," said Ole Houe, an advisor on agricultural commodities at FCStone Australia.
Palm oil prices dip as traders eye China import tax
JAKARTA, Feb 18 (Reuters) - Malaysian palm oil futures fell reversing earlier gains as they took direction largely from other oil markets and possible food import tax changes in China.
"Some people say this (price fall) has happened because of an increase in palm oil supply, but it wouldn't affect prices this much," said Leonardo Gavaza, an analyst at Bahana Securities.
Argentine soy and corn crops seen steady - exchange
BUENOS AIRES, Feb 17 (Reuters) - Argentina's 2010/11 soy harvest is seen steady at 47.0 million tonnes, while the outlook for corn was held at 19.5 million tonnes, the Buenos Aires Grains Exchange said on Thursday in its weekly report.
Argentina is the world's No. 3 soybean exporter, and severe dryness linked to the La Nina weather anomaly prompted analysts to lower their forecasts for the harvest earlier this season, pushing up prices in international grain markets.
Brazil's No.3 soy state may harvest record crop
SAO PAULO, Feb 17 (Reuters) - Brazil's southernmost state of Rio Grande do Sul may harvest a record soy crop in 2011 after dryness caused by the La Nina anomaly was restricted to few areas, the state's crop agency Emater said on Thursday.
The soy crop of Brazil's No.3 producing state is now projected at 10.39 million tonnes, up from a previous estimate of 9.14 million tonnes.
China mulls import tax cuts to tame food inflation
BEIJING, Feb 17 (Reuters) - China's Ministry of Commerce has asked other ministries to consider potential cuts in import taxes on a range of goods including food, two sources said on Thursday, in a move seen aimed at taming rising inflation.
Speculation on which import duties could be cut reverberated through domestic and overseas agriculture markets. Soy and palm oil prices fell on talk of the possible cuts.
India's trade min: refined vegoil import tax "very fair"
KUALA LUMPUR, Feb 18 (Reuters) - India's Trade Minister said on Friday that import duties on refined edible oils were "very fair", playing down expectations the government will scrap the tax in its annual budget due later this month.
Soaring edible oil prices, owing to erratic weather in key exporters, have prompted some Asian countries to act. Bangladesh slashed import taxes earlier this week and China may be mulling a similar move.
Friday, February 18, 2011
20110218 1823 FCPO EOD Daily Chart Study.
Bollinger band reading : side way range bound potentially testing lower support.
MACD Histrogram : getting lower, seller adding position.
Support : 3650, 3620, 3550 level.
Resistance : 3700, 3720, 3750 level.
Comment :
Wild swing market FCPO continue to closed weaker recorded loss with lower volume traded as traders eye on possible China import tax move and ahead of next Monday export data while soy oil trading lower after overnight closed recorded substantial gains.
Daily chart formed a wide body down doji bar candle as seller seems more aggressive to gain control with the reading still suggesting a side way range bound market development potentially testing lower support near lower Bollinger band 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.
20110218 1754 FKLI EOD Daily Chart Study.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : recovering, seller reducing position.
Support : 1515, 1500, 1485 level.
Resistance : 1530, 1540, 1550 level.
Comment :
On par with cash market FKLI closed recorded gains with better volume transacted while regional market closed mostly higher except for Shanghai and Australia exchange.
Daily chart formed an up bar candle closed near middle Bollinger band resistance level with an unchanged correction range bound downside biased market reading.
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.
20110218 0932 Local & Global Economic Related News.
Malaysia: Robust growth for the country
The Malaysian economy grew by more than 6% in 2010 and the country could post moderate growth this year with a calm global environment, said Prime Minister Datuk Seri Najib Razak. Malaysia's GDP surged 10.1% in the first quarter, followed by 8.9% in the second quarter and 5.3% in the third quarter. Bank Negara Malaysia will release the fourth quarter details today. (BT)
Singapore: Raises inflation forecast on record growth
Singapore raised its inflation and export forecasts for 2011 after the economy expanded at a record pace last year, sustaining pressure on the central bank to allow greater currency appreciation. Consumer prices may climb as much as 4% this year while exports may rise 10%, the trade ministry said. The economy expanded a revised 14.5% in 2010, with gross domestic product growing an annualized 3.9% in the three months to 31 Dec from the previous quarter, it said. (Bloomberg)
China: Foreign investment rose 23.4% in January
Foreign direct investment in China climbed in January, adding to record inflows last year that are complicating Premier Wen Jiabao’s efforts to tame inflation in the world’s fastest-growing major economy. Investment rose 23.4% to USD10bn last month from a year earlier, the Ministry of Commerce said. Estimates of four economists surveyed ranged from an increase of 10% to 23%. (Bloomberg)
US: Fed tells banks to test capital for recession
The Federal Reserve ordered the 19 largest US banks to test their capital levels against a scenario of renewed recession with unemployment rising above 11%, said two people with knowledge of the review. The banks stress-tested the performance of their loans, securities, earnings, and capital against at least three possible economic outcomes as part of a broader capital-planning exercise. The banks, including some seeking to increase dividends cut during the financial crisis, submitted their plans last month. The Fed will finish its review in March. (Bloomberg)
US: Consumer prices rise more than forecast
Rising global demand for food and fuel pushed up the US cost of living more than forecast in January, a sign the risk of a damaging drop in prices is ebbing. The consumer-price index advanced 0.4% for a second month, led by the biggest increase in food costs in more than two years, according to figures from the Labor Department. Other reports showed manufacturing is bolstering the expansion, and consumer confidence is being buffeted by rising household expenses. (Bloomberg)
US: Index of leading economic indicators climbs 0.1%
The index of US leading indicators rose in January for the seventh straight month, signaling the expansion will extend into this year. The Conference Board’s gauge of the outlook for the next three to six months increased 0.1% after rising 0.8% in December, the New York-based group said. The median forecast of economists surveyed was for a 0.2% gain. (Bloomberg)
U.S: Loans in foreclosure tie record as lenders delay seizures. A record share of U.S. mortgages were in the foreclosure process at the end of 2010, matching the all-time high, as lenders and servicers delayed home seizures to investigate charges of improper documentation. About 4.63% of loans were in foreclosure in 4Q10, up from 4.39% in the previous three months. The combined share of foreclosures and loans with overdue payments was 14%, or about one in every seven mortgages. (Source: Bloomberg)
S. Korea: Department store sales rose at the fastest pace on record in January. Outlays at the three biggest chains climbed 24% YoY in January after rising 11.6% YoY in December, the Ministry of Knowledge Economy said. It said the increase is the highest since it began compiling the data in 2005 using the current methodology. (Source: Bloomberg)
Taiwan: Economic growth slowed in 4Q10 as exports eased. GDP climbed 6.92% YoY in the three months through December, compared with a revised 10.69% YoY in the third quarter, the statistics bureau said in Taipei. (Source: Bloomberg)
Vietnam: Raises refinancing rate to 11%, joining Asian counterparts in tightening policy to curb accelerating inflation. The State Bank of Vietnam raised the rate from 9 % it said in a statement on its website. The rate was one of three that were raised on Nov. 5, when the base rate was also increased to 9%from 8%, and the discount rate was lifted to 7% from 6%. (Source: Bloomberg)
The Malaysian economy grew by more than 6% in 2010 and the country could post moderate growth this year with a calm global environment, said Prime Minister Datuk Seri Najib Razak. Malaysia's GDP surged 10.1% in the first quarter, followed by 8.9% in the second quarter and 5.3% in the third quarter. Bank Negara Malaysia will release the fourth quarter details today. (BT)
Singapore: Raises inflation forecast on record growth
Singapore raised its inflation and export forecasts for 2011 after the economy expanded at a record pace last year, sustaining pressure on the central bank to allow greater currency appreciation. Consumer prices may climb as much as 4% this year while exports may rise 10%, the trade ministry said. The economy expanded a revised 14.5% in 2010, with gross domestic product growing an annualized 3.9% in the three months to 31 Dec from the previous quarter, it said. (Bloomberg)
China: Foreign investment rose 23.4% in January
Foreign direct investment in China climbed in January, adding to record inflows last year that are complicating Premier Wen Jiabao’s efforts to tame inflation in the world’s fastest-growing major economy. Investment rose 23.4% to USD10bn last month from a year earlier, the Ministry of Commerce said. Estimates of four economists surveyed ranged from an increase of 10% to 23%. (Bloomberg)
US: Fed tells banks to test capital for recession
The Federal Reserve ordered the 19 largest US banks to test their capital levels against a scenario of renewed recession with unemployment rising above 11%, said two people with knowledge of the review. The banks stress-tested the performance of their loans, securities, earnings, and capital against at least three possible economic outcomes as part of a broader capital-planning exercise. The banks, including some seeking to increase dividends cut during the financial crisis, submitted their plans last month. The Fed will finish its review in March. (Bloomberg)
US: Consumer prices rise more than forecast
Rising global demand for food and fuel pushed up the US cost of living more than forecast in January, a sign the risk of a damaging drop in prices is ebbing. The consumer-price index advanced 0.4% for a second month, led by the biggest increase in food costs in more than two years, according to figures from the Labor Department. Other reports showed manufacturing is bolstering the expansion, and consumer confidence is being buffeted by rising household expenses. (Bloomberg)
US: Index of leading economic indicators climbs 0.1%
The index of US leading indicators rose in January for the seventh straight month, signaling the expansion will extend into this year. The Conference Board’s gauge of the outlook for the next three to six months increased 0.1% after rising 0.8% in December, the New York-based group said. The median forecast of economists surveyed was for a 0.2% gain. (Bloomberg)
U.S: Loans in foreclosure tie record as lenders delay seizures. A record share of U.S. mortgages were in the foreclosure process at the end of 2010, matching the all-time high, as lenders and servicers delayed home seizures to investigate charges of improper documentation. About 4.63% of loans were in foreclosure in 4Q10, up from 4.39% in the previous three months. The combined share of foreclosures and loans with overdue payments was 14%, or about one in every seven mortgages. (Source: Bloomberg)
S. Korea: Department store sales rose at the fastest pace on record in January. Outlays at the three biggest chains climbed 24% YoY in January after rising 11.6% YoY in December, the Ministry of Knowledge Economy said. It said the increase is the highest since it began compiling the data in 2005 using the current methodology. (Source: Bloomberg)
Taiwan: Economic growth slowed in 4Q10 as exports eased. GDP climbed 6.92% YoY in the three months through December, compared with a revised 10.69% YoY in the third quarter, the statistics bureau said in Taipei. (Source: Bloomberg)
Vietnam: Raises refinancing rate to 11%, joining Asian counterparts in tightening policy to curb accelerating inflation. The State Bank of Vietnam raised the rate from 9 % it said in a statement on its website. The rate was one of three that were raised on Nov. 5, when the base rate was also increased to 9%from 8%, and the discount rate was lifted to 7% from 6%. (Source: Bloomberg)
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