Malaysia: External reserves increased slightly in the second half of February 11 to RM338.6b (USD109.8b) as at 28 February 11 from RM338.0b (USD109.6b) on 15 February 11. The latest reserve amount is equivalent to 8.1 months of retained imports and 4.3 times short-term external debt. (Source: Bank Negara)
Greece: Debt downgrade by Moody's sends default risk to record. The cost of insuring Greek debt against default rose to a record after Moody's Investors Service cut the country's credit rating by three notches. The Finance Ministry in Athens called the move, which sent its rating to B1 from Ba1, "completely unjustified." Moody's said lagging tax collection and "implementation risks" would make it more difficult to reach budget-cutting targets in a EUR 110b (USD 154b) bailout. (Source: Bloomberg)
S. Korea: Targets wider Asia bond sales to cut crisis risk. "We would like to broaden our bond buyers overseas so that we can avoid a financial crisis caused by the sudden flight by a few," Woo Hae Young, director of the Government Bond Policy Division at the Ministry of Strategy and Finance, said an interview at his office in Gwacheon on March 4. "We're looking to Asia, especially China, Hong Kong, Singapore, Malaysia, and Thailand, for long-term investors." (Source: Bloomberg)
Philippines: Reported a smaller budget deficit last year than the government forecast as spending missed targets. The shortfall was a record PHP314.4b (USD7.3b), compared with a forecast of PHP325b, the government said in an emailed statement. Spending was PHP1.52tr, lower than a goal of PHP1.62tr, while revenue was PHP1.21tr, less than a target of PHP1.29tr. The deficit was PHP44.6b in December. (Source: Bloomberg)
Vietnam: Commercial lenders to limit their loans made in foreign currencies as policy makers seek to narrow the nation's trade deficit and stabilize its exchange rate, a central bank official said. Priority for the loans will be given to export companies that have foreign-currency resources to repay banks, and importers of essential goods that aren't produced domestically, the official said on condition of anonymity because he isn't authorized to speak to the media. (Source: Bloomberg)
Australia: Job advertisements rose in February for a 10th straight month, as Queensland state cleaned up from flooding in January. Jobs advertised in newspapers and on the Internet advanced 1.2% MoM from January, when they increased a revised 3% MoM, according to an Australia & New Zealand Banking Group Ltd. report released in Melbourne. Queensland recorded a 30.5% MoM surge in newspaper job advertisements, it said. (Source: Bloomberg)
Australia: Construction contracted for ninth month
Australia’s building industry contracted in February for a ninth straight month as higher borrowing costs weighed on housing construction. The construction performance index was 44.6 last month from 40.2 in January. A reading below 50 indicates the industry is shrinking. A gauge of house building declined 3.1 points to 34.2 in February. The measure of new orders climbed 2.3 points to 43.2, engineering work rose 13.3 points to 52 and commercial work gained 3.8 points to 42.4. (Bloomberg)
UK: Manufacturers plan to raise prices, fueling inflation
UK manufacturers plan to raise prices as the cost of oil and other raw materials surge, which may fuel further inflation pressure. The number of companies saying they plan to raise domestic prices exceeded those expecting declines by 39 ppts, up from 16 in the previous three months and the highest since the data were first collected in 2000. The proportion of manufacturers saying they hired workers in the first quarter exceeded those reporting job cuts by 29 ppts while the number of companies reporting that output rose in the three months through March exceeded those reporting decreases by 25ppts. (Bloomberg)
US: Consumer credit increased in January
US consumer borrowing increased for a fourth straight month in January, led by a gain in non- revolving loans such as those for automobiles and education. The USD5.01bn rise in credit followed a revised USD4.09bn gain in December that was less than the previous estimate. Revolving debt, which includes credit cards, decreased USD4.25bn in January, while non-revolving debt, including loans for cars and mobile homes, rose USD9.26bn. (Bloomberg)
Tuesday, March 8, 2011
20110308 0958 Malaysia Corporate Related News.
QSR: Sets up Cambodian unit. QSR Brands Bhd has incorporated a company in Cambodia, Integrated Poultry Industry (Kampuchea) Pte Ltd, for the purpose of operating a broiler and processing production in Phnom Penh. (Source: Bursa Malaysia)
FDI: Invest KL targets 10 MNCs annually. Invest KL, expected to be launched by end-April, is targeting to attract at least 10 multinational companies (MNCs) annually to invest in Kuala Lumpur and the Klang Valley. Invest KL had attracted two MNCs, Schlumberger and Vale, so far. (Source: The Star)
Transportation: Feasibility studies on high-speed KL-Singapore rail. The Government is currently undertaking feasibility studies on a high-speed rail connecting Kuala Lumpur and Singapore. The feasibility studies would take about eight weeks to complete. (Source: The Star)
Telco: P1 part of SK Telecom's larger plans. While investors may have turned sceptical towards loss-making WiMAX player Packet One Networks Sdn Bhd (P1), its new strategic partner SK Telecom (SKT) believes there is much value in P1's wireless business as a launchpad for SKT's aspiration to expand regionally in Southeast Asia. SKT said that either P1 or Green Packet could become part of SKT's expansion plans in Southeast Asia later. (Source: The Edge Financial Daily)
Nestle Malaysia budgets up to RM120m for capex
Nestle Malaysia has budgeted RM100m to RM120m to expand its capacity this year. Managing Director Peter Vogt claimed that majority of the sum is to be invested in increasing the capacity and innovation. He said the increase in capacity at the company’s factory allows the group to expand its export market, namely Indonesia and the Philippines, as well as the domestic market. The budget for capacity expansion is in line with the group’s priority on having organic growth, instead of growing via mergers and acquisitions. (Financial Daily)
Multi Sports to sponsor TDR programme
Multi Sports Holdings (MPHB) is proposing to sponsor a depository receipt programme in Taiwan which entails the issuance of Taiwan depository receipts (TDR) representing up to 67.5m new shares of 5 US cents (15 sen) each in the company. Such a move will pave the way for Multi Sports to have dual listing.(StarBiz)
Allianz eyes 10% growth Allianz General Insurance Co (M) Bhd (AGIC) wants to grow its business by 10% this year, riding on the bullish economy that is expected to spur construction activities and consumer spending power. However, its chief executive officer Zakri Mohd Khir said although the 10% target is achievable, the insurer believes that growth would be between 6% and 8%. (BT)
DRB-HICOM unit wins RM7.5bn defense contract
DRB-HICOM’s wholly-owned subsidiary, DRB-Hicom Defence Technologies SB (Deftech), has received a contract worth RM7.55bn from the Malaysian Government to supply armored-wheeled vehicles (AWV). DRBHICOM told Bursa Malaysia yesterday that Deftech had accepted a letter of award from the Government to design, develop, manufacture, commission, supply and deliver 257 units of 12 variants of the 8x8 AWVs. The contract is for a period of seven years beginning 2011. (StarBiz)
Lion Group blames Vinashin woes for Viet project failure
The Lion Group has blamed problems at Vietnam's scandal-hit shipbuilder Vinashin for the failure of a multibillion- dollar joint venture. The USD9.8bn (RM29.69bn) project by state-owned Vietnam Shipbuilding Industry Group (Vinashin) and Lion would have included a steel mill, power plants and a sea port in the southern Vietnamese province of Ninh Thuan. Vietnamese officials said last month that the project's investment licence had been revoked because investors did not fulfil their commitments. "The Lion Group wishes to clarify that the lack of progress is due to the financial and management issues affecting Vinashin which has not been able to respond on the continuity of the project," the firm said in a statement. (BT)
Sime Darby eyes French region for plant
Sime Darby Plantation, the world's largest listed plantation company, has identified the Languedoc-Roussillon region in France as a potential location to set up its multi-feedstock vegetable oil processing plant. The move will be part of the group's strategy to expand into key areas around the world where there is a growing demand for edible oils such as in southern Europe and north Africa. “The proposed plant, to be located in the coastal town of Port-la-Nouvelle, will also present an unprecedented opportunity for economic development and new employment,” it said in a statement yesterday. (StarBiz)
Thai AirAsia seeks USD200m from IPO
The Thai unit of AirAsia, Asia's largest budget carrier by fleet size, said yesterday it planned to raise up to USD200m from an initial public offering (IPO) in Bangkok in the fourth quarter. “We should raise US$150m to USD200m from the IPO and the proceeds will be used as cash reserve and to buy aircraft,” Thai AirAsia chief executive Tassapon Bijleveld told reporters. (StarBiz)
Sunway unit bags RM74.1m contract
Sunway Holdings’ unit Sunway Construction SB (SunCon) has secured a contract worth RM74.1m from Bio- XCell SB to undertake the engineering, procurement, construction and commissioning of a central utilities facility at Biotechnological Park Bio-XCell in Nusajaya, Johor. “The proposed project is targeted to be completed by 25 May, 2012. (StarBiz)
Golden Frontier selling Vietnam unit
Main-board listed Golden Frontier is selling its corrugated packaging business in Vietnam and will use the proceeds to embark on two new ventures in Malaysia. It planned to set up a paper mill in Sungai Bakap, Penang and a corrugated packaging facility in the Klang Valley which would eventually cost a total RM550m, said executive chairman and managing director Datuk Khor Teng How. Speaking after Golden Frontier's AGM yesterday, Khor said the company was selling its wholly-owned subsidiary Alcamex Packaging (Vietnam) Joint Stock Co to Siam Cement Group for USD21m (RM63m) cash. Alcamex owns three plants in Vietnam two in Ho Chi Minh City and one in Hanoi. (StarBiz)
FDI: Invest KL targets 10 MNCs annually. Invest KL, expected to be launched by end-April, is targeting to attract at least 10 multinational companies (MNCs) annually to invest in Kuala Lumpur and the Klang Valley. Invest KL had attracted two MNCs, Schlumberger and Vale, so far. (Source: The Star)
Transportation: Feasibility studies on high-speed KL-Singapore rail. The Government is currently undertaking feasibility studies on a high-speed rail connecting Kuala Lumpur and Singapore. The feasibility studies would take about eight weeks to complete. (Source: The Star)
Telco: P1 part of SK Telecom's larger plans. While investors may have turned sceptical towards loss-making WiMAX player Packet One Networks Sdn Bhd (P1), its new strategic partner SK Telecom (SKT) believes there is much value in P1's wireless business as a launchpad for SKT's aspiration to expand regionally in Southeast Asia. SKT said that either P1 or Green Packet could become part of SKT's expansion plans in Southeast Asia later. (Source: The Edge Financial Daily)
Nestle Malaysia budgets up to RM120m for capex
Nestle Malaysia has budgeted RM100m to RM120m to expand its capacity this year. Managing Director Peter Vogt claimed that majority of the sum is to be invested in increasing the capacity and innovation. He said the increase in capacity at the company’s factory allows the group to expand its export market, namely Indonesia and the Philippines, as well as the domestic market. The budget for capacity expansion is in line with the group’s priority on having organic growth, instead of growing via mergers and acquisitions. (Financial Daily)
Multi Sports to sponsor TDR programme
Multi Sports Holdings (MPHB) is proposing to sponsor a depository receipt programme in Taiwan which entails the issuance of Taiwan depository receipts (TDR) representing up to 67.5m new shares of 5 US cents (15 sen) each in the company. Such a move will pave the way for Multi Sports to have dual listing.(StarBiz)
Allianz eyes 10% growth Allianz General Insurance Co (M) Bhd (AGIC) wants to grow its business by 10% this year, riding on the bullish economy that is expected to spur construction activities and consumer spending power. However, its chief executive officer Zakri Mohd Khir said although the 10% target is achievable, the insurer believes that growth would be between 6% and 8%. (BT)
DRB-HICOM unit wins RM7.5bn defense contract
DRB-HICOM’s wholly-owned subsidiary, DRB-Hicom Defence Technologies SB (Deftech), has received a contract worth RM7.55bn from the Malaysian Government to supply armored-wheeled vehicles (AWV). DRBHICOM told Bursa Malaysia yesterday that Deftech had accepted a letter of award from the Government to design, develop, manufacture, commission, supply and deliver 257 units of 12 variants of the 8x8 AWVs. The contract is for a period of seven years beginning 2011. (StarBiz)
Lion Group blames Vinashin woes for Viet project failure
The Lion Group has blamed problems at Vietnam's scandal-hit shipbuilder Vinashin for the failure of a multibillion- dollar joint venture. The USD9.8bn (RM29.69bn) project by state-owned Vietnam Shipbuilding Industry Group (Vinashin) and Lion would have included a steel mill, power plants and a sea port in the southern Vietnamese province of Ninh Thuan. Vietnamese officials said last month that the project's investment licence had been revoked because investors did not fulfil their commitments. "The Lion Group wishes to clarify that the lack of progress is due to the financial and management issues affecting Vinashin which has not been able to respond on the continuity of the project," the firm said in a statement. (BT)
Sime Darby eyes French region for plant
Sime Darby Plantation, the world's largest listed plantation company, has identified the Languedoc-Roussillon region in France as a potential location to set up its multi-feedstock vegetable oil processing plant. The move will be part of the group's strategy to expand into key areas around the world where there is a growing demand for edible oils such as in southern Europe and north Africa. “The proposed plant, to be located in the coastal town of Port-la-Nouvelle, will also present an unprecedented opportunity for economic development and new employment,” it said in a statement yesterday. (StarBiz)
Thai AirAsia seeks USD200m from IPO
The Thai unit of AirAsia, Asia's largest budget carrier by fleet size, said yesterday it planned to raise up to USD200m from an initial public offering (IPO) in Bangkok in the fourth quarter. “We should raise US$150m to USD200m from the IPO and the proceeds will be used as cash reserve and to buy aircraft,” Thai AirAsia chief executive Tassapon Bijleveld told reporters. (StarBiz)
Sunway unit bags RM74.1m contract
Sunway Holdings’ unit Sunway Construction SB (SunCon) has secured a contract worth RM74.1m from Bio- XCell SB to undertake the engineering, procurement, construction and commissioning of a central utilities facility at Biotechnological Park Bio-XCell in Nusajaya, Johor. “The proposed project is targeted to be completed by 25 May, 2012. (StarBiz)
Golden Frontier selling Vietnam unit
Main-board listed Golden Frontier is selling its corrugated packaging business in Vietnam and will use the proceeds to embark on two new ventures in Malaysia. It planned to set up a paper mill in Sungai Bakap, Penang and a corrugated packaging facility in the Klang Valley which would eventually cost a total RM550m, said executive chairman and managing director Datuk Khor Teng How. Speaking after Golden Frontier's AGM yesterday, Khor said the company was selling its wholly-owned subsidiary Alcamex Packaging (Vietnam) Joint Stock Co to Siam Cement Group for USD21m (RM63m) cash. Alcamex owns three plants in Vietnam two in Ho Chi Minh City and one in Hanoi. (StarBiz)
20110308 0954 Global Market Related News.
U.N. Says World Vulnerable To Food Crises (Source: CME)
The world has become increasingly vulnerable to food crises in the wake of the global financial crisis and the commodity boom of 2007-08, the United Nations' food body said. In its flagship report, the Food and Agriculture Organization said while world food prices fell after spiking in 2008, they remain elevated and volatile, a situation likely to continue owing to rising production costs, growing demand from biofuels and pressure on supplies from a rapidly-expanding population. "The experience of the food price and financial crises have provided a sharp reminder of the vulnerability of world food security to shocks in the global food system and the world economy," said the report. Some food prices have more than doubled this year after weather problems in key producers curbed the global production of wheat, corn, cotton and sugar.
The FAO's food-price index rose 2.2% on month in February, the eighth-consecutive monthly rise, to the highest level in real and nominal terms since the FAO started monitoring prices in 1990, according to data from the body. Charities warn the rising cost of staple foods could push the number of chronically-hungry people in the world above 1 billion, as happened in 2009. "Millions more people are sliding into poverty as they struggle to afford basic food supplies and more and more are at risk of going hungry," said Oxfam's food-policy adviser Thierry Kesteloot. The FAO report said that with global food consumption outpacing supply, "prices are projected to increase over the next decade and to continue to be at levels, on average, above those of the past decade." World food production, as measured by the FAO's production index, is forecast to have grown 0.8% in 2010 after rising 3.8% in 2008 and 2.6% in 2007, as producers responded to the high prices of the food crisis.
Global food consumption, which has been rising at an average of around 2% a year, was only marginally dented by the recession, the FAO said. Trade in food is expected to have contracted again in 2010 after increasing 4%-6% annually before the financial crisis. "Episodes of high prices are detrimental to food security, and the high uncertainty associated with price volatility affects producer viability and may lead to reduced agricultural investments," said the report. Problems such as climate change are also expected to leave markets more vulnerable to shocks: the number of Asian countries affected by food crises doubled from five a year in 1981-2002 to 10 in 2003-2009, for example. "Since the mid-1980s, the general trend has been towards an increase in the number of countries affected by emergencies," the report said. In the face of such growing pressure, the FAO said governments must boost investment in agriculture.
It highlighted that closing the gender gap in agricultural production by empowering women could potentially boost developing countries' output by 2.5%-4% and feed an extra 100-150 million starving people. "The recent food and financial crises, the uncoordinated policy responses and continuing fears over global food-market turmoil have underscored the need for action by the international community," it said.
China Commerce Minister: Developed Economies Enjoy Edge In Food Market Due To Agricultural Subsidies (Source: CME)
China is studying lowering tariffs to increase imports and will unilaterally cut import tariffs from less-developed countries, Commerce Minister Chen Deming said. Speaking at a briefing during the National People's Congress, the annual meeting of China's legislature, Chen said China attaches great importance to expanding imports from the U.S. and views rebalancing bilateral trade with the world's largest economy as the key to resolving its overall trade surplus.
He added that trade deficits can't be ruled out for "a few months" this year, but China's trade surplus as a share of gross domestic product will likely fall. China's export growth will likely slow, in part due to fluctuating currencies, rising commodities prices, and higher labor costs, Chen said.
UN Agency: 2.7 Mln People In Arab Crisis May Need Food Aid (Source: CME)
An estimated 2.7 million people will need food aid as a result of the political turmoil sweeping the Middle East and North Africa, the United Nations' relief agency said, as it launched an appeal to help refugees from the Libyan crisis. The World Food Program said it is calling for a total of $43.2 million in aid to assist 1.1 million people directly affected by the Libyan crisis, adding that it has staff pre-positioned to enter the country once access is possible. "Libya faces a humanitarian crisis following an unprecedented level of upheaval and violence," it said in its latest crisis update. "The current outlook for the country...is that the humanitarian situation will continue to deteriorate." More than 200,000 mostly migrant workers have fled to bordering countries, including Tunisia and Egypt, in a bid to escape violence in Libya. Humanitarian agencies estimate up to 6,000 people may have died since mid-February following a violent crackdown on rebel groups by forces loyal to Moammar Gadhafi.
Libya's crisis is the latest in a wave of revolutionary unrest sweeping the Arab world which has toppled the long-standing presidents of Tunisia and Egypt and threatened many of the region's autocratic regimes. The WFP said it has already provided food aid for more than 35,000 people near the Egyptian and Tunisian borders and is making preparations to deliver aid for a further 29,000 in the coming days. The U.N. estimates 400,000 people will leave Libya due to the crisis. Still, as violence continues the WFP said the repercussions are likely to escalate. "As the recent political upheavals in Egypt and Tunisia have exacerbated their already weakened social safety net systems, WFP may need to expand assistance to target an estimated 2.7 million people," it said.
U.S. employment rebounds from winter gloom
WASHINGTON, March 4 (Reuters) - U.S. employers hired workers at the fastest pace in nine months in February and the jobless rate slipped to a nearly two-year low of 8.9 percent, showing the economy is finally kicking into a higher gear.
Nonfarm payrolls increased 192,000, the Labour Department said on Friday, partly bouncing back from a weather-depressed January as private employers hired 222,000 workers, the most since April. The gains were broadly in line with expectations.
China targets inflation as fiscal priority
BEIJING, March 7 (Reuters) - China will ensure that big increases in spending on social priorities from public housing to health care do not aggravate inflationary pressures that it has been trying to suppress, the finance minister said on Monday.
What's more, China will use its fiscal policies to boost production of grain, cotton and food as a way of reining in prices, Finance Minister Xie Xuren said at a news conference held during China's annual national parliament session.
S.Korea: economy in recovery, price pressure up
SEOUL, March 7 (Reuters) - Brisk domestic demand and exports have been shoring up the South Korean economy, but stronger raw material prices are raising inflationary pressure, the Finance Ministry said in a report to the parliament on Monday.
The report comes just before the Bank of Korea convenes its monthly rate-setting meeting on Thursday, after it surprised markets by standing pat in February following an unexpected hike by 25 basis points to 2.75 percent in January.
China urges other nations to accept rare earths position
BEIJING, March 7 (Reuters) - Economies that have come to depend on China for rare earths metals should accept that Beijing has real environmental concerns that make curtailing exports necessary, the Chinese Commerce Minister Chen Deming said on Monday.
China produces about 97 percent of the global supply of rare earth minerals used in smartphones, electric car motors and high-tech industrial equipment. Beijing cut export quotas by 40 percent last year, alarming buyers and trading partners.
PRECIOUS-Gold climbs to record as Mideast violence flares
LONDON, March 7 (Reuters) - Gold climbed to a record high above $1,440 an ounce on Monday as the threat of violence spreading in the Middle East and North Africa pushed oil prices to 2-1/2 year highs and burnished the metal's safe-haven appeal.
"There is all sorts to support gold -- high oil prices, low real interest rates, and the fact that there are constant reminders that we still have debt problems in Europe," said Standard Bank analyst Walter de Wet.
FOREX-Euro jumps to 4-mth high vs dlr on ECB rate view
LONDON, March 7 (Reuters) - The euro jumped to a four-month high against the dollar on Monday as expectations of a euro zone interest rate hike next month helped it vault back above $1.40 and investors shrugged off a ratings downgrade of Greece.
"Sentiment is bullish at the moment and we could see a test of the 1.4080/00 area," said Richard Wiltshire, chief foreign exchange dealer at ETX Capital.
Argentina issues permits for delayed grains shipments
BUENOS AIRES, March 5 (Reuters) - Argentina's government said on Saturday it had granted export permits to allow grains shipments delayed at ports after President Cristina Fernandez dissolved the state agency in charge of the multibillion-dollar farm trade last week.
The dissolution of the ONCCA agency, which farm leaders accused of corruption and inefficiency and which was responsible for authorizing export permits, delayed shipments and generated uncertainty among exporters.
Oil at 2-1/2-year high, world stocks retreat
LONDON, March 7 (Reuters) - Crude oil prices jumped to a 2-1/2-year peak as worries about supply disruption increased due to widening clashes in Libya, while world stocks fell on concern sustained high oil prices could hurt growth. "Investors are still nervous. The one thing they hate is uncertainty and the Middle East situation is providing plenty of uncertainty," said Keith Bowman, analyst at Hargreaves Lansdown.
The world has become increasingly vulnerable to food crises in the wake of the global financial crisis and the commodity boom of 2007-08, the United Nations' food body said. In its flagship report, the Food and Agriculture Organization said while world food prices fell after spiking in 2008, they remain elevated and volatile, a situation likely to continue owing to rising production costs, growing demand from biofuels and pressure on supplies from a rapidly-expanding population. "The experience of the food price and financial crises have provided a sharp reminder of the vulnerability of world food security to shocks in the global food system and the world economy," said the report. Some food prices have more than doubled this year after weather problems in key producers curbed the global production of wheat, corn, cotton and sugar.
The FAO's food-price index rose 2.2% on month in February, the eighth-consecutive monthly rise, to the highest level in real and nominal terms since the FAO started monitoring prices in 1990, according to data from the body. Charities warn the rising cost of staple foods could push the number of chronically-hungry people in the world above 1 billion, as happened in 2009. "Millions more people are sliding into poverty as they struggle to afford basic food supplies and more and more are at risk of going hungry," said Oxfam's food-policy adviser Thierry Kesteloot. The FAO report said that with global food consumption outpacing supply, "prices are projected to increase over the next decade and to continue to be at levels, on average, above those of the past decade." World food production, as measured by the FAO's production index, is forecast to have grown 0.8% in 2010 after rising 3.8% in 2008 and 2.6% in 2007, as producers responded to the high prices of the food crisis.
Global food consumption, which has been rising at an average of around 2% a year, was only marginally dented by the recession, the FAO said. Trade in food is expected to have contracted again in 2010 after increasing 4%-6% annually before the financial crisis. "Episodes of high prices are detrimental to food security, and the high uncertainty associated with price volatility affects producer viability and may lead to reduced agricultural investments," said the report. Problems such as climate change are also expected to leave markets more vulnerable to shocks: the number of Asian countries affected by food crises doubled from five a year in 1981-2002 to 10 in 2003-2009, for example. "Since the mid-1980s, the general trend has been towards an increase in the number of countries affected by emergencies," the report said. In the face of such growing pressure, the FAO said governments must boost investment in agriculture.
It highlighted that closing the gender gap in agricultural production by empowering women could potentially boost developing countries' output by 2.5%-4% and feed an extra 100-150 million starving people. "The recent food and financial crises, the uncoordinated policy responses and continuing fears over global food-market turmoil have underscored the need for action by the international community," it said.
China Commerce Minister: Developed Economies Enjoy Edge In Food Market Due To Agricultural Subsidies (Source: CME)
China is studying lowering tariffs to increase imports and will unilaterally cut import tariffs from less-developed countries, Commerce Minister Chen Deming said. Speaking at a briefing during the National People's Congress, the annual meeting of China's legislature, Chen said China attaches great importance to expanding imports from the U.S. and views rebalancing bilateral trade with the world's largest economy as the key to resolving its overall trade surplus.
He added that trade deficits can't be ruled out for "a few months" this year, but China's trade surplus as a share of gross domestic product will likely fall. China's export growth will likely slow, in part due to fluctuating currencies, rising commodities prices, and higher labor costs, Chen said.
UN Agency: 2.7 Mln People In Arab Crisis May Need Food Aid (Source: CME)
An estimated 2.7 million people will need food aid as a result of the political turmoil sweeping the Middle East and North Africa, the United Nations' relief agency said, as it launched an appeal to help refugees from the Libyan crisis. The World Food Program said it is calling for a total of $43.2 million in aid to assist 1.1 million people directly affected by the Libyan crisis, adding that it has staff pre-positioned to enter the country once access is possible. "Libya faces a humanitarian crisis following an unprecedented level of upheaval and violence," it said in its latest crisis update. "The current outlook for the country...is that the humanitarian situation will continue to deteriorate." More than 200,000 mostly migrant workers have fled to bordering countries, including Tunisia and Egypt, in a bid to escape violence in Libya. Humanitarian agencies estimate up to 6,000 people may have died since mid-February following a violent crackdown on rebel groups by forces loyal to Moammar Gadhafi.
Libya's crisis is the latest in a wave of revolutionary unrest sweeping the Arab world which has toppled the long-standing presidents of Tunisia and Egypt and threatened many of the region's autocratic regimes. The WFP said it has already provided food aid for more than 35,000 people near the Egyptian and Tunisian borders and is making preparations to deliver aid for a further 29,000 in the coming days. The U.N. estimates 400,000 people will leave Libya due to the crisis. Still, as violence continues the WFP said the repercussions are likely to escalate. "As the recent political upheavals in Egypt and Tunisia have exacerbated their already weakened social safety net systems, WFP may need to expand assistance to target an estimated 2.7 million people," it said.
U.S. employment rebounds from winter gloom
WASHINGTON, March 4 (Reuters) - U.S. employers hired workers at the fastest pace in nine months in February and the jobless rate slipped to a nearly two-year low of 8.9 percent, showing the economy is finally kicking into a higher gear.
Nonfarm payrolls increased 192,000, the Labour Department said on Friday, partly bouncing back from a weather-depressed January as private employers hired 222,000 workers, the most since April. The gains were broadly in line with expectations.
China targets inflation as fiscal priority
BEIJING, March 7 (Reuters) - China will ensure that big increases in spending on social priorities from public housing to health care do not aggravate inflationary pressures that it has been trying to suppress, the finance minister said on Monday.
What's more, China will use its fiscal policies to boost production of grain, cotton and food as a way of reining in prices, Finance Minister Xie Xuren said at a news conference held during China's annual national parliament session.
S.Korea: economy in recovery, price pressure up
SEOUL, March 7 (Reuters) - Brisk domestic demand and exports have been shoring up the South Korean economy, but stronger raw material prices are raising inflationary pressure, the Finance Ministry said in a report to the parliament on Monday.
The report comes just before the Bank of Korea convenes its monthly rate-setting meeting on Thursday, after it surprised markets by standing pat in February following an unexpected hike by 25 basis points to 2.75 percent in January.
China urges other nations to accept rare earths position
BEIJING, March 7 (Reuters) - Economies that have come to depend on China for rare earths metals should accept that Beijing has real environmental concerns that make curtailing exports necessary, the Chinese Commerce Minister Chen Deming said on Monday.
China produces about 97 percent of the global supply of rare earth minerals used in smartphones, electric car motors and high-tech industrial equipment. Beijing cut export quotas by 40 percent last year, alarming buyers and trading partners.
PRECIOUS-Gold climbs to record as Mideast violence flares
LONDON, March 7 (Reuters) - Gold climbed to a record high above $1,440 an ounce on Monday as the threat of violence spreading in the Middle East and North Africa pushed oil prices to 2-1/2 year highs and burnished the metal's safe-haven appeal.
"There is all sorts to support gold -- high oil prices, low real interest rates, and the fact that there are constant reminders that we still have debt problems in Europe," said Standard Bank analyst Walter de Wet.
FOREX-Euro jumps to 4-mth high vs dlr on ECB rate view
LONDON, March 7 (Reuters) - The euro jumped to a four-month high against the dollar on Monday as expectations of a euro zone interest rate hike next month helped it vault back above $1.40 and investors shrugged off a ratings downgrade of Greece.
"Sentiment is bullish at the moment and we could see a test of the 1.4080/00 area," said Richard Wiltshire, chief foreign exchange dealer at ETX Capital.
Argentina issues permits for delayed grains shipments
BUENOS AIRES, March 5 (Reuters) - Argentina's government said on Saturday it had granted export permits to allow grains shipments delayed at ports after President Cristina Fernandez dissolved the state agency in charge of the multibillion-dollar farm trade last week.
The dissolution of the ONCCA agency, which farm leaders accused of corruption and inefficiency and which was responsible for authorizing export permits, delayed shipments and generated uncertainty among exporters.
Oil at 2-1/2-year high, world stocks retreat
LONDON, March 7 (Reuters) - Crude oil prices jumped to a 2-1/2-year peak as worries about supply disruption increased due to widening clashes in Libya, while world stocks fell on concern sustained high oil prices could hurt growth. "Investors are still nervous. The one thing they hate is uncertainty and the Middle East situation is providing plenty of uncertainty," said Keith Bowman, analyst at Hargreaves Lansdown.
20110308 0953 Soy Oil & Palm Oil Related News.
US soy-product futures close lower with as traders take money off the table amid concerns about the global economy. Broad selling of agricultural commodities also hit soybeans, corn and wheat. Forecasts for beneficial rains in Argentina added pressure, as it is the world's top exporter of soy products. "The weather in Argentina is really quite good right now," according to World Weather. CBOT May soymeal falls $6.30 to $363.40/short ton while CBOT May soyoil loses 0.38c to 59.10c/ pound. (Source: CME)
Palm oil at 2-wk top on biofuel appeal, low stocks
KUALA LUMPUR, March 7 (Reuters) - Malaysian crude palm oil hit two-week highs before paring some gains as traders hoped stronger energy prices would strengthen the appeal of biodiesel as unrest in Libya threatens to cut crude oil supplies. "Most likely the government will come out with a solution to balance supply-demand in the country, and probably we could see another interest rate hike -- which is mostly expected by market players," said Zhang Juan Cong, an analyst with Dadi Futures in China's southern city of Hangzhou.
India's Feb oilmeal exports more than double
NEW DELHI, Mar 7 (Reuters) - India's oilmeal exports more than doubled in February from a year ago, the eighth straight monthly rise, on good demand from buyers in Japan, Middle East and China, data from a leading trade body showed.
Oilmeal exports from India, Asia's leading supplier of the animal feed, were 10 percent higher month-on-month at 703,400 tonnes, the Solvent Extractors' Association of India (SEA) said in a statement on Monday.
Argentine crops in mixed shape due to rains-gov't
BUENOS AIRES, March 4 (Reuters) - Argentine 2010/11 soy is in a patchy condition depending on how much rain has fallen, but many crops in the top growing region are developing well, the Agriculture Ministry said on Friday.
Argentina is the world's No. 3 exporter of soybeans and the top supplier of soyoil and meal, but weeks of dryness caused by La Nina earlier this year prompted analysts to lower their estimates for soy this season's output.
Palm oil output rise may help satisfy food demand
JAKARTA/KUALA LUMPUR, March 7 (Reuters) - Strong production of southeast Asian palm oil is the best hope of boosting cooking oil supplies as competitor soyoil gets soaked up to make biofuel, its attraction redoubled by unrest in Libya that has driven crude oil to more than $100 a barrel.
Vegetable oil markets had braced for a fall in palm oil prices in the second half of 2010, on expectations of strong output from top producer Indonesia, as it harvests a bigger acreage, and as No.2 supplier Malaysia improves yields.
Indian vegoil imports to fall on year-association
KUALA LUMPUR, March 7 (Reuters) - Imports of vegetable oils in the world's top buyer India, will fall more than 2 percent in the current marking year to September, due to improving domestic output, an industry official said on Monday.
India's imports of palm oil, soyoil and sunflower oil in last year were 9.2 million tonnes and are seen dropping to 9 million in 2011, B.V. Mehta, executive director of the Solvent Extractors' Association of India, told Reuters.
Malaysian palm stocks to stay low, prices seen up
KUALA LUMPUR, March 7 (Reuters) - Palm oil stocks in Malaysia, the world's No.2 producer, will be tight from February to April, a top industry official said on Monday, potentially fuelling prices and global food inflation. Malaysian Palm Oil Board (MPOB) Chairman Shahrir Samad said stocks in February, March and April are expected to be about 1.3 million tonnes to 1.4 million tonnes, down by up to 8.5 percent from January.
Brazil on brink of new soy boom, easing food fear
SAO PAULO, March 4 (Reuters) - When soy futures hit record highs in 2008, Brazilian farmers were in no position to capitalize on the boom. Crippling debts, wild currency swings and high fertilizer and fuel costs rendered them unwilling or unable to sow more acres.
Today, although prices are almost 20 percent lower, conditions have rarely been better. Farmers, now flush with cash, are preparing the first sustained expansion of the country's soy crop after a half decade of stagnation.
Upside seen in palm oil prices; 2011 purchases flat -CSM
JAKARTA, March 4 (Reuters) - Volatile palm oil prices have the potential for greater upside during the first half, as uncertainty in comparative vegetable oil yields offsets the risk of speculators liquidating positions, CSM , the world's largest bakery supplier, said on Friday.
The benchmark May 2011 crude palm oil contract on Bursa Malaysia Derivatives touched 3,967 ringgit ($1,308) on Feb. 10, a peak not seen since March 2008.
Palm oil at 2-wk top on biofuel appeal, low stocks
KUALA LUMPUR, March 7 (Reuters) - Malaysian crude palm oil hit two-week highs before paring some gains as traders hoped stronger energy prices would strengthen the appeal of biodiesel as unrest in Libya threatens to cut crude oil supplies. "Most likely the government will come out with a solution to balance supply-demand in the country, and probably we could see another interest rate hike -- which is mostly expected by market players," said Zhang Juan Cong, an analyst with Dadi Futures in China's southern city of Hangzhou.
India's Feb oilmeal exports more than double
NEW DELHI, Mar 7 (Reuters) - India's oilmeal exports more than doubled in February from a year ago, the eighth straight monthly rise, on good demand from buyers in Japan, Middle East and China, data from a leading trade body showed.
Oilmeal exports from India, Asia's leading supplier of the animal feed, were 10 percent higher month-on-month at 703,400 tonnes, the Solvent Extractors' Association of India (SEA) said in a statement on Monday.
Argentine crops in mixed shape due to rains-gov't
BUENOS AIRES, March 4 (Reuters) - Argentine 2010/11 soy is in a patchy condition depending on how much rain has fallen, but many crops in the top growing region are developing well, the Agriculture Ministry said on Friday.
Argentina is the world's No. 3 exporter of soybeans and the top supplier of soyoil and meal, but weeks of dryness caused by La Nina earlier this year prompted analysts to lower their estimates for soy this season's output.
Palm oil output rise may help satisfy food demand
JAKARTA/KUALA LUMPUR, March 7 (Reuters) - Strong production of southeast Asian palm oil is the best hope of boosting cooking oil supplies as competitor soyoil gets soaked up to make biofuel, its attraction redoubled by unrest in Libya that has driven crude oil to more than $100 a barrel.
Vegetable oil markets had braced for a fall in palm oil prices in the second half of 2010, on expectations of strong output from top producer Indonesia, as it harvests a bigger acreage, and as No.2 supplier Malaysia improves yields.
Indian vegoil imports to fall on year-association
KUALA LUMPUR, March 7 (Reuters) - Imports of vegetable oils in the world's top buyer India, will fall more than 2 percent in the current marking year to September, due to improving domestic output, an industry official said on Monday.
India's imports of palm oil, soyoil and sunflower oil in last year were 9.2 million tonnes and are seen dropping to 9 million in 2011, B.V. Mehta, executive director of the Solvent Extractors' Association of India, told Reuters.
Malaysian palm stocks to stay low, prices seen up
KUALA LUMPUR, March 7 (Reuters) - Palm oil stocks in Malaysia, the world's No.2 producer, will be tight from February to April, a top industry official said on Monday, potentially fuelling prices and global food inflation. Malaysian Palm Oil Board (MPOB) Chairman Shahrir Samad said stocks in February, March and April are expected to be about 1.3 million tonnes to 1.4 million tonnes, down by up to 8.5 percent from January.
Brazil on brink of new soy boom, easing food fear
SAO PAULO, March 4 (Reuters) - When soy futures hit record highs in 2008, Brazilian farmers were in no position to capitalize on the boom. Crippling debts, wild currency swings and high fertilizer and fuel costs rendered them unwilling or unable to sow more acres.
Today, although prices are almost 20 percent lower, conditions have rarely been better. Farmers, now flush with cash, are preparing the first sustained expansion of the country's soy crop after a half decade of stagnation.
Upside seen in palm oil prices; 2011 purchases flat -CSM
JAKARTA, March 4 (Reuters) - Volatile palm oil prices have the potential for greater upside during the first half, as uncertainty in comparative vegetable oil yields offsets the risk of speculators liquidating positions, CSM , the world's largest bakery supplier, said on Friday.
The benchmark May 2011 crude palm oil contract on Bursa Malaysia Derivatives touched 3,967 ringgit ($1,308) on Feb. 10, a peak not seen since March 2008.
Monday, March 7, 2011
20110307 1808 FCPO EOD Daily Chart Study.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : recovering, seller closing position.
Support : 3650, 3620, 3550, 3500 level.
Resistance : 3700, 3720, 3750 level.
Comment :
First day of Palm Oil Conference FCPO closed recorded gains for the 5th day in a row with quiet volume participation as crude oil price continue to trade firmer while soy oil trading little lower.
Daily chart formed a small up bar candle positioned little above middle Bolligner band resistance level after market opened unchanged and lifting higher to closed near the high of the day.
Chart reading still suggesting a correction range bound downside biased market development testing support and resistant level with MACD indicator about to cross up.
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.
20110307 1728 FKLI EOD Daily Chart Study.
Bollinger band reading : side way range bound.
MACD Histrogram : rising, buyer taking small exposure.
Support : 1515, 1500, 1485 level.
Resistance : 1530, 1540, 1550, 1580 level.
Comment :
FKLI closed recorded small loss with slow volume transacted doing 4 points premium compare to cash market while regional market ended mixed ans last Friday US market closed lower.
Daily chart formed an up doji bar candle with long lower shadow after market opened gap down, tested lower followed by last half and hour buyer push to recovered all earlier loss to closed unchanged positioned in between middle and upper Bollinger band level with the bandwidth turning inwards.
Daily chart reading still suggesting a side way range bound market development testing support and resistance 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.
20110307 1020 Palm Oil Conference 2011 Breaking News.
POC : MPOB Chairman :
2011 Palm Oil prices to average @ RM3,600/t vs 2010 average @ RM2,700/t.
2011 Palm Oil Output Forecast of 17.6 mln tonnes on strong rainfall, higher maturing acreage.
2011 Feb ~ Apr Palm Oil ending stocks to range between 1.3 mln ~ 1.4 mln tonnes.
2011 Palm Oil prices to average @ RM3,600/t vs 2010 average @ RM2,700/t.
2011 Palm Oil Output Forecast of 17.6 mln tonnes on strong rainfall, higher maturing acreage.
2011 Feb ~ Apr Palm Oil ending stocks to range between 1.3 mln ~ 1.4 mln tonnes.
20110307 0930 Global Economic Related News.
Economic: Malaysia's growth target remains despite Mideast turmoil. The Government is firm in achieving its 6% annual growth target this year despite the civil unrest in some Middle Eastern countries. The target was attainable by ensuring investments committed to Malaysia were implemented efficiently. (Source: The Star)
U.S. Factory orders climbed in January by the most in more than four years as demand for commercial aircraft rebounded after slumping the previous month. Bookings for manufacturers' goods increased 3.1%, the most since September 2006, after a revised 1.4% gain in December that was larger than previously estimated, figures from the Commerce Department showed in Washington. Orders excluding transportation equipment also advanced, propelled by a jump in demand for non-durable goods that may reflect higher commodity prices. (Source: Bloomberg)
U.K: House prices fell in February, erasing a gain the previous month, according to Halifax, which said the economic outlook may damp property demand this year. Prices fell 0.9% from January, when they rose 0.8%, the mortgage unit of Lloyds Banking Group Plc said in a statement in London. The average value of a home last month was GBP162,657 (USD264,431) and the lender sees prices falling 2% this year. (Source: Bloomberg)
Spain: Industrial production rose in January by the most in almost a year as the recovery from an almost two-year recession accelerated. Output at factories, refineries and mines rose 3.8% from a year earlier, adjusting for the number of working days, after falling 0.1% in December, the National Statistics Institute in Madrid said in an emailed statement. That was the most since March 2010. (Source: Bloomberg)
Indonesia: Bank Indonesia left borrowing costs unchanged, refraining from a second increase in a row while signaling the pause may be temporary as inflationary pressure remains elevated. The central bank kept its benchmark reference rate at 6.75%, it said in a statement in Jakarta. (Source: Bloomberg)
Philippines: Inflation accelerated in February to the fastest pace in nine months as food prices climbed, reducing the central bank's scope to keep the benchmark interest rate at a record low. Consumer prices increased 4.3% from a year earlier, after a revised 3.6% gain in January, the National Statistics Office said in Manila. (Source: Bloomberg)
Vietnam: London-based HSBC cut its estimate for Vietnam's GDP growth to 7% in 2011 from 7.5% before, and reduced the 2012 prediction to 7.4% from 7.8%. Last year, the Southeast Asian nation's economy expanded 6.8%, the fastest since 2007. (Source: Bloomberg)
Australia: Construction contracted in February for a ninth straight month as higher borrowing costs weighed on housing construction, a private survey showed. The construction performance index was 44.6 last month from
40.2 in January, according to a survey by the Australian industry Group and the Housing Industry Association released in Sydney. A reading below 50 indicates the industry is shrinking. (Source: Bloomberg)
China: Key aim is taming prices as Wen eyes social stability
China will target inflation as the top economic priority this year and narrow the gap between rich and poor as the government seeks to maintain social stability, Premier Wen Jiabao told lawmakers in Beijing. “We cannot allow price rises to affect the normal lives of low-income people,” Wen said in his state-of-the-nation report to the annual meeting of the National People’s Congress yesterday. (Bloomberg)
China: Plans RMB900bn budget deficit in 2011
China plans to run a budget deficit of RMB900bn (USD137bn) in 2011, the Ministry of Finance said. Fiscal spending is targeted to rise 11.9% to RMB10trn and revenue will grow 8% to RMB8.97trn, the ministry said in a budget report presented to the National People’s Congress. (Bloomberg)
Australia: Construction contracted for ninth month in February
Australia’s building industry contracted in February for a ninth straight month as higher borrowing costs weighed on housing construction, a private survey showed. The construction performance index was 44.6 last month from 40.2 in January, according to a survey by the Australian Industry Group and the Housing Industry Association released. A reading below 50 indicates the industry is shrinking. (Bloomberg)
US: Jobless rate decreased to 8.9%, lowest since April 2009
Joblessness in the US unexpectedly fell to 8.9% in February, the lowest level in almost two years, and employers boosted payrolls amid growing confidence in the expansion. The rate dropped for a third straight month and employment climbed by 192,000, according to Labor Department figures released. The median estimate in a survey of economists projected unemployment would climb to 9.1%. (Bloomberg)
US: Retail sales probably climbed in February
US retail sales probably climbed in February by the most in four months, spurred by job growth and more seasonable temperatures, economists said before a report this week. The projected 1% gain would follow a 0.3% January increase, according to the median forecast of 63 economists surveyed ahead of Commerce Department figures on 11 March. (Bloomberg)
U.S. Factory orders climbed in January by the most in more than four years as demand for commercial aircraft rebounded after slumping the previous month. Bookings for manufacturers' goods increased 3.1%, the most since September 2006, after a revised 1.4% gain in December that was larger than previously estimated, figures from the Commerce Department showed in Washington. Orders excluding transportation equipment also advanced, propelled by a jump in demand for non-durable goods that may reflect higher commodity prices. (Source: Bloomberg)
U.K: House prices fell in February, erasing a gain the previous month, according to Halifax, which said the economic outlook may damp property demand this year. Prices fell 0.9% from January, when they rose 0.8%, the mortgage unit of Lloyds Banking Group Plc said in a statement in London. The average value of a home last month was GBP162,657 (USD264,431) and the lender sees prices falling 2% this year. (Source: Bloomberg)
Spain: Industrial production rose in January by the most in almost a year as the recovery from an almost two-year recession accelerated. Output at factories, refineries and mines rose 3.8% from a year earlier, adjusting for the number of working days, after falling 0.1% in December, the National Statistics Institute in Madrid said in an emailed statement. That was the most since March 2010. (Source: Bloomberg)
Indonesia: Bank Indonesia left borrowing costs unchanged, refraining from a second increase in a row while signaling the pause may be temporary as inflationary pressure remains elevated. The central bank kept its benchmark reference rate at 6.75%, it said in a statement in Jakarta. (Source: Bloomberg)
Philippines: Inflation accelerated in February to the fastest pace in nine months as food prices climbed, reducing the central bank's scope to keep the benchmark interest rate at a record low. Consumer prices increased 4.3% from a year earlier, after a revised 3.6% gain in January, the National Statistics Office said in Manila. (Source: Bloomberg)
Vietnam: London-based HSBC cut its estimate for Vietnam's GDP growth to 7% in 2011 from 7.5% before, and reduced the 2012 prediction to 7.4% from 7.8%. Last year, the Southeast Asian nation's economy expanded 6.8%, the fastest since 2007. (Source: Bloomberg)
Australia: Construction contracted in February for a ninth straight month as higher borrowing costs weighed on housing construction, a private survey showed. The construction performance index was 44.6 last month from
40.2 in January, according to a survey by the Australian industry Group and the Housing Industry Association released in Sydney. A reading below 50 indicates the industry is shrinking. (Source: Bloomberg)
China: Key aim is taming prices as Wen eyes social stability
China will target inflation as the top economic priority this year and narrow the gap between rich and poor as the government seeks to maintain social stability, Premier Wen Jiabao told lawmakers in Beijing. “We cannot allow price rises to affect the normal lives of low-income people,” Wen said in his state-of-the-nation report to the annual meeting of the National People’s Congress yesterday. (Bloomberg)
China: Plans RMB900bn budget deficit in 2011
China plans to run a budget deficit of RMB900bn (USD137bn) in 2011, the Ministry of Finance said. Fiscal spending is targeted to rise 11.9% to RMB10trn and revenue will grow 8% to RMB8.97trn, the ministry said in a budget report presented to the National People’s Congress. (Bloomberg)
Australia: Construction contracted for ninth month in February
Australia’s building industry contracted in February for a ninth straight month as higher borrowing costs weighed on housing construction, a private survey showed. The construction performance index was 44.6 last month from 40.2 in January, according to a survey by the Australian Industry Group and the Housing Industry Association released. A reading below 50 indicates the industry is shrinking. (Bloomberg)
US: Jobless rate decreased to 8.9%, lowest since April 2009
Joblessness in the US unexpectedly fell to 8.9% in February, the lowest level in almost two years, and employers boosted payrolls amid growing confidence in the expansion. The rate dropped for a third straight month and employment climbed by 192,000, according to Labor Department figures released. The median estimate in a survey of economists projected unemployment would climb to 9.1%. (Bloomberg)
US: Retail sales probably climbed in February
US retail sales probably climbed in February by the most in four months, spurred by job growth and more seasonable temperatures, economists said before a report this week. The projected 1% gain would follow a 0.3% January increase, according to the median forecast of 63 economists surveyed ahead of Commerce Department figures on 11 March. (Bloomberg)
20110307 0929 Malaysia Corporate Related News.
AirAsia: Indonesia IPO to raise USD200m, Sarawak offers land to AirAsia for LCCT. AirAsia Indonesia, a unit of AirAsia Bhd, aims to raise USD150m to USD200m via an initial public offering (IPO) in 4Q11. Separately, the Sarawak government has offered a piece of land next to the Kuching International Airport to AirAsia Bhd to build a dedicated low-cost carrier terminal (LCCT). (Source: The Star)
TRC Synergy: Expects new contracts. TRC Synergy Bhd (TRC) is expected to increase its order book this year with more contract wins, mainly from road projects in East Malaysia and also potential involvement in MRT (mass rapid transit) project. (Source: Malaysian Reserve)
Banking: Further tightening by Bank Negara in mortgage lending sector. Bank Negara would be taking pre-emptive measures in the mortgage lending sector to reduce risks. Banks will have to hold more capital for mortgage loans. Mortgages with loan-to-value (LTV) ratio of more than 90% will have to carry weightage of 100%, compared with 75% previously. The risk weightage for LTVs that are less than 80% remains 35% and for those between 80% and 90% remains at 50%. (Source: The Edge Financial Weekly)
Manufacturing: Investments hit RM4.6b. The manufacturing sector saw approved investments totalling RM4.6b in 67 projects in January. The largest domestic investment came from the oil and gas sector, led by Malaysia Marine and Heavy Engineering Bhd with a total investment of RM2.3b. Foreign investments approved totalled RM600m with Singapore, France, Japan, United Kingdom and India accounting for the major source of investments. (Source: The Star)
RM7.5bn project for DRB-HICOM
DRB-Hicom Bhd is poised to receive a letter of award to supply 257 units of armoured personnel carriers (APCs) worth up to RM7.5bn from the overnment, this week, people with knowledge of the project financing said. Business Times understands that a group of banks are preparing to provide partial financing for the project. A group of banks led by Maybank, RHB Bank and AmBank are helping to arrange the syndicated loan and other financing, which could be worth as much as RM3.5bn. Under the terms of the contract, DRB-HICOM will deliver the armoured-wheeled vehicles to the Government by 2016. The group will come out with the first vehicle sometime early next year. DRB-HICOM's defence unit, DRB-HICOM Defence Technologies SB (DEFTECH), will be undertaking the project. DEFTECH is to build 12 variants of the APC from the base vehicle, including personnel carrier, anti-tank weapon carrier, command and control and anti-aircraft weapon vehicles. "The contract is for a seven-year period," said a finance executive familiar with the massive project. (BT)
Germany-based TMW to sell 3 malls in Malaysia
MW Asia Property Fund, which is based in Germany, is selling three of its shopping complexes in Malaysia which it purchased in 2005 for an estimated RM500m. The shopping complexes are Ipoh Parade in Perak, Klang Parade in Selangor and Seremban Parade in Negri Sembilan. International property consultant Rahim & Co, which has been appointed as the exclusive agent to handle the deal, declined to comment when contacted. The fund is managed by Pramerica, the real estate investment management business of Prudential Financial Inc from the US. It is understood that the closing date for the tender is tomorrow. It is unclear how many bids have been submitted, but sources said that the tender had attracted interests from abroad. The fund bought the three properties - under the operating companies Lion Klang Parade Sdn Bhd, Lion Seremban Parade SB and Lion Ipoh Parade Sdn Bhd - for RM340m in 2005 from the Lion group. (BT)
Maxis in ‘final stages’ to wrap up deal with Baraka Telecom
Maxis Bhd, the largest mobile phone network company in Malaysia, is close to securing a three-year deal to provide telecommunication services to Kuwait’s Baraka Telecom SB in Malaysia. The Malaysian Reserve has learnt that negotiations between the two parties are now in the ‘final stages’ and a formal agreement would be signed ‘soon’ that would mark Baraka’s return to the so-called mobile virtual network operator (MVNO) business here in Malaysia. It is understood that Baraka Telecom, a unit of Kuwait-based Reach Telecom Holding KSCC, seeks to provide Shariah-compliant telecommunication services to the public although exact details of the plan are still sketchy. (MalaysianReserve)
Sunway secures RM258m Legoland contract
Sunway Holdings wholly-owned subsidiary, Sunway Construction SB, has secured a RM257.97m contract from IDR Assets SB to build package four of the Legoland Malaysia Theme Park development in Johor. The company announced on Bursa Malaysia last Friday that the project is scheduled to be completed in 2 June 2012. IDR Resorts SB, a member company of Iskandar Investment, in responsible for the development of Legoland Malaysia, in partnership with Merlin Entertainments. (MalaysianReserve)
Fajarbaru bags two contracts worth RM150m
Fajarbaru Builder Group Bhs, a construction and engineering company, has secured two contracts worth RM150.05m as the subcontractor to work on the light rail transit (LRT) extension. Both contracts would last 21 months and would contribute to earnings and net asset from financial year ending 30 June 2012 o 2013. The first contract, worth more than RM87m, would see Fajarbaru working on the Kelana Jaya Line of the LRT involving construction and commissioning of three stations as well as all other related works. Meanwhile, the second contract is valued at RM62.67m involving two stations and other associated project along the extended Ampang Line. (MalaysianReserve)
TRC Synergy: Expects new contracts. TRC Synergy Bhd (TRC) is expected to increase its order book this year with more contract wins, mainly from road projects in East Malaysia and also potential involvement in MRT (mass rapid transit) project. (Source: Malaysian Reserve)
Banking: Further tightening by Bank Negara in mortgage lending sector. Bank Negara would be taking pre-emptive measures in the mortgage lending sector to reduce risks. Banks will have to hold more capital for mortgage loans. Mortgages with loan-to-value (LTV) ratio of more than 90% will have to carry weightage of 100%, compared with 75% previously. The risk weightage for LTVs that are less than 80% remains 35% and for those between 80% and 90% remains at 50%. (Source: The Edge Financial Weekly)
Manufacturing: Investments hit RM4.6b. The manufacturing sector saw approved investments totalling RM4.6b in 67 projects in January. The largest domestic investment came from the oil and gas sector, led by Malaysia Marine and Heavy Engineering Bhd with a total investment of RM2.3b. Foreign investments approved totalled RM600m with Singapore, France, Japan, United Kingdom and India accounting for the major source of investments. (Source: The Star)
RM7.5bn project for DRB-HICOM
DRB-Hicom Bhd is poised to receive a letter of award to supply 257 units of armoured personnel carriers (APCs) worth up to RM7.5bn from the overnment, this week, people with knowledge of the project financing said. Business Times understands that a group of banks are preparing to provide partial financing for the project. A group of banks led by Maybank, RHB Bank and AmBank are helping to arrange the syndicated loan and other financing, which could be worth as much as RM3.5bn. Under the terms of the contract, DRB-HICOM will deliver the armoured-wheeled vehicles to the Government by 2016. The group will come out with the first vehicle sometime early next year. DRB-HICOM's defence unit, DRB-HICOM Defence Technologies SB (DEFTECH), will be undertaking the project. DEFTECH is to build 12 variants of the APC from the base vehicle, including personnel carrier, anti-tank weapon carrier, command and control and anti-aircraft weapon vehicles. "The contract is for a seven-year period," said a finance executive familiar with the massive project. (BT)
Germany-based TMW to sell 3 malls in Malaysia
MW Asia Property Fund, which is based in Germany, is selling three of its shopping complexes in Malaysia which it purchased in 2005 for an estimated RM500m. The shopping complexes are Ipoh Parade in Perak, Klang Parade in Selangor and Seremban Parade in Negri Sembilan. International property consultant Rahim & Co, which has been appointed as the exclusive agent to handle the deal, declined to comment when contacted. The fund is managed by Pramerica, the real estate investment management business of Prudential Financial Inc from the US. It is understood that the closing date for the tender is tomorrow. It is unclear how many bids have been submitted, but sources said that the tender had attracted interests from abroad. The fund bought the three properties - under the operating companies Lion Klang Parade Sdn Bhd, Lion Seremban Parade SB and Lion Ipoh Parade Sdn Bhd - for RM340m in 2005 from the Lion group. (BT)
Maxis in ‘final stages’ to wrap up deal with Baraka Telecom
Maxis Bhd, the largest mobile phone network company in Malaysia, is close to securing a three-year deal to provide telecommunication services to Kuwait’s Baraka Telecom SB in Malaysia. The Malaysian Reserve has learnt that negotiations between the two parties are now in the ‘final stages’ and a formal agreement would be signed ‘soon’ that would mark Baraka’s return to the so-called mobile virtual network operator (MVNO) business here in Malaysia. It is understood that Baraka Telecom, a unit of Kuwait-based Reach Telecom Holding KSCC, seeks to provide Shariah-compliant telecommunication services to the public although exact details of the plan are still sketchy. (MalaysianReserve)
Sunway secures RM258m Legoland contract
Sunway Holdings wholly-owned subsidiary, Sunway Construction SB, has secured a RM257.97m contract from IDR Assets SB to build package four of the Legoland Malaysia Theme Park development in Johor. The company announced on Bursa Malaysia last Friday that the project is scheduled to be completed in 2 June 2012. IDR Resorts SB, a member company of Iskandar Investment, in responsible for the development of Legoland Malaysia, in partnership with Merlin Entertainments. (MalaysianReserve)
Fajarbaru bags two contracts worth RM150m
Fajarbaru Builder Group Bhs, a construction and engineering company, has secured two contracts worth RM150.05m as the subcontractor to work on the light rail transit (LRT) extension. Both contracts would last 21 months and would contribute to earnings and net asset from financial year ending 30 June 2012 o 2013. The first contract, worth more than RM87m, would see Fajarbaru working on the Kelana Jaya Line of the LRT involving construction and commissioning of three stations as well as all other related works. Meanwhile, the second contract is valued at RM62.67m involving two stations and other associated project along the extended Ampang Line. (MalaysianReserve)
20110307 0847 Global Market Related News.
Gold near record, silver at 31-year peak on Libya
SINGAPORE, March 7 (Reuters) - Gold rose to near a record high and silver jumped to its highest in more than three decades on inflation worries triggered by rising oil prices as widening clashes in Libya deepened fears the country was on the brink of a civil war.
"If we do see tension escalating further, then we could witness a new high in gold. Besides Libya, I think investors will also be looking at other countries within the Middle East. The example will be Saudi Arabia," said Ong Yi
Oil hits 2-1/2 yr highs as Libya turmoil deepens
HONG KONG, March 7 (Reuters) - Crude oil prices rose to 2-1/2 year highs on heightened worries about supply disruption due to deepening unrest in Libya, while Asian stocks slipped as concerns about the Middle East and higher energy prices weighed on equities.
Asian markets have see-sawed following volatile oil prices in recent weeks, but the MSCI ex-Japan index is barely a percent away from a 2-1/2 year peak tested in January, indicating markets have been largely resilient to the Libyan crisis.
India commodity exchange trade to jump
MUMBAI, March 3 (Reuters) - Volumes on India's commodity exchanges could jump 20 percent in the year to March 2012, as banks and foreign institutions start trading and mini-contracts attract farmers to take part, the market regulator said.
Legislation to allow banks and foreign players onto India's markets should be cleared in July 2011, B.C. Khatua, head of the Forward Markets Commission (FMC), told Reuters in an interview late on Wednesday.
US data point to strengthening growth, jobs market
WASHINGTON, March 3 (Reuters) - The number of Americans filing new claims for jobless aid hit the lowest level in more than 2-1/2 years last week and service sector hiring picked up in February, signs the labor market recovery was quickening.
Another report on Thursday confirmed business productivity picked up a bit in the fourth quarter, but it also underscored a slowing trend that suggested employers may have to step up hiring even further.
Global PMI at 5-year high but upturn comes at a cost
LONDON, March 3 (Reuters) - Global businesses grew at their fastest pace in almost five years last month but also witnessed increasing price pressures, a purchasing managers' survey showed on Thursday.
The JP Morgan Global All-Industry Output Index, which combines manufacturing and services data, rose to 59.4 from January's 58.3, its highest reading since April 2006.
Emerging markets dash hits commodity funds -Lipper
LONDON, March 3 (Reuters) - Newly-launched commodity funds attracted over 1.8 billion euros ($2.50 billion) in Europe in 2010 but the sector as a whole suffered due to an investor dash for emerging markets products, Lipper FMI said on Thursday.
Total commodity funds had estimated net sales of 6.89 billion euros in Europe in 2010, mutual fund market research company Lipper FMI said in its annual review of the European funds industry.
CIC official: not heard of plans to buy Glencore stake
BEIJING, March 4 (Reuters) - A senior official at China's $300 billion sovereign wealth fund said on Friday that he had not heard of any plans for the fund to buy a stake in Glencore International AG, the world's largest commodities trader, which is aiming for a potential stock market listing.
Glencore's possible initial public offering could value it at about $60 billion and the deal could be a fee bonanza for investment bankers.
PRECIOUS-Gold rises towards $1,420/oz ahead of U.S. payrolls
LONDON, March 4 (Reuters) - Gold firmed in Europe on Friday, recovering some of the previous session's hefty losses as unrest in North Africa supported demand for the metal as a haven from risk, though moves were muted ahead of key U.S. payrolls data.
Spot gold was bid at $1,418.55 an ounce at 1046 GMT, against $1,415.59 late in New York on Thursday. U.S. gold futures for April delivery rose $2.50 to $1,418.90. Gold fixed at $1,418.00 an ounce at 1030 GMT.
FOREX-Euro pushes up on ECB view, payrolls awaited
LONDON, March 4 (Reuters) - The euro hit a four-month high against the dollar on Friday on expectations euro zone interest rates may rise next month, while investors waited to see if an expected improvement in U.S. jobs data would offer respite to the U.S. currency.
The euro edged up to $1.3977 on electronic trading platform EBS a day after European Central Bank President Jean-Claude Trichet stunned investors by saying a rate rise in April was a possibility in its drive to fight inflation risks.
Jobs, oil and rates vie for investor focus
LONDON, March 4 (Reuters) - Hopes of an improved U.S. employment picture lifted shares on Friday, but the prospect of higher interest rates in Europe and a rising oil price kept other world markets on edge.
"Any shortfall in the U.S. non-farm payrolls, or any flare-ups on the geopolitical front could see the risk appetite ebbing away once again," said Chris Weston, institutional trader at IG Markets.
SINGAPORE, March 7 (Reuters) - Gold rose to near a record high and silver jumped to its highest in more than three decades on inflation worries triggered by rising oil prices as widening clashes in Libya deepened fears the country was on the brink of a civil war.
"If we do see tension escalating further, then we could witness a new high in gold. Besides Libya, I think investors will also be looking at other countries within the Middle East. The example will be Saudi Arabia," said Ong Yi
Oil hits 2-1/2 yr highs as Libya turmoil deepens
HONG KONG, March 7 (Reuters) - Crude oil prices rose to 2-1/2 year highs on heightened worries about supply disruption due to deepening unrest in Libya, while Asian stocks slipped as concerns about the Middle East and higher energy prices weighed on equities.
Asian markets have see-sawed following volatile oil prices in recent weeks, but the MSCI ex-Japan index is barely a percent away from a 2-1/2 year peak tested in January, indicating markets have been largely resilient to the Libyan crisis.
India commodity exchange trade to jump
MUMBAI, March 3 (Reuters) - Volumes on India's commodity exchanges could jump 20 percent in the year to March 2012, as banks and foreign institutions start trading and mini-contracts attract farmers to take part, the market regulator said.
Legislation to allow banks and foreign players onto India's markets should be cleared in July 2011, B.C. Khatua, head of the Forward Markets Commission (FMC), told Reuters in an interview late on Wednesday.
US data point to strengthening growth, jobs market
WASHINGTON, March 3 (Reuters) - The number of Americans filing new claims for jobless aid hit the lowest level in more than 2-1/2 years last week and service sector hiring picked up in February, signs the labor market recovery was quickening.
Another report on Thursday confirmed business productivity picked up a bit in the fourth quarter, but it also underscored a slowing trend that suggested employers may have to step up hiring even further.
Global PMI at 5-year high but upturn comes at a cost
LONDON, March 3 (Reuters) - Global businesses grew at their fastest pace in almost five years last month but also witnessed increasing price pressures, a purchasing managers' survey showed on Thursday.
The JP Morgan Global All-Industry Output Index, which combines manufacturing and services data, rose to 59.4 from January's 58.3, its highest reading since April 2006.
Emerging markets dash hits commodity funds -Lipper
LONDON, March 3 (Reuters) - Newly-launched commodity funds attracted over 1.8 billion euros ($2.50 billion) in Europe in 2010 but the sector as a whole suffered due to an investor dash for emerging markets products, Lipper FMI said on Thursday.
Total commodity funds had estimated net sales of 6.89 billion euros in Europe in 2010, mutual fund market research company Lipper FMI said in its annual review of the European funds industry.
CIC official: not heard of plans to buy Glencore stake
BEIJING, March 4 (Reuters) - A senior official at China's $300 billion sovereign wealth fund said on Friday that he had not heard of any plans for the fund to buy a stake in Glencore International AG, the world's largest commodities trader, which is aiming for a potential stock market listing.
Glencore's possible initial public offering could value it at about $60 billion and the deal could be a fee bonanza for investment bankers.
PRECIOUS-Gold rises towards $1,420/oz ahead of U.S. payrolls
LONDON, March 4 (Reuters) - Gold firmed in Europe on Friday, recovering some of the previous session's hefty losses as unrest in North Africa supported demand for the metal as a haven from risk, though moves were muted ahead of key U.S. payrolls data.
Spot gold was bid at $1,418.55 an ounce at 1046 GMT, against $1,415.59 late in New York on Thursday. U.S. gold futures for April delivery rose $2.50 to $1,418.90. Gold fixed at $1,418.00 an ounce at 1030 GMT.
FOREX-Euro pushes up on ECB view, payrolls awaited
LONDON, March 4 (Reuters) - The euro hit a four-month high against the dollar on Friday on expectations euro zone interest rates may rise next month, while investors waited to see if an expected improvement in U.S. jobs data would offer respite to the U.S. currency.
The euro edged up to $1.3977 on electronic trading platform EBS a day after European Central Bank President Jean-Claude Trichet stunned investors by saying a rate rise in April was a possibility in its drive to fight inflation risks.
Jobs, oil and rates vie for investor focus
LONDON, March 4 (Reuters) - Hopes of an improved U.S. employment picture lifted shares on Friday, but the prospect of higher interest rates in Europe and a rising oil price kept other world markets on edge.
"Any shortfall in the U.S. non-farm payrolls, or any flare-ups on the geopolitical front could see the risk appetite ebbing away once again," said Chris Weston, institutional trader at IG Markets.
20110307 0846 Soy Oil & Palm Oil Related News.
Soy product futures finished mixed, with soymeal stumbling with corn. Soymeal was pressured by weakness in feed grain corn, as meal has been encumbered by increased competition from distillers dried grain, a byproduct of ethanol production, analysts said. Soyoil futures settled at their highest level in three-weeks, supported strength in crude oil futures and strong demand for world vegoils, analysts said. CBOT May soyoil ended 0.71 cents or 1.2% higher at 59.48 cents per pound, and May soymeal traded $2.80 or 0.8% lower at $369.70 a short ton. (Source: CME)
Malaysia Palm Oil Conference Issues: Uncertain Demand, Rising Supply (Source: CME)
Rising food prices, concerns about demand aggravated by tensions in the Middle East, and improving global supplies of vegetable oils are some of the issues that will be in focus when Bursa Malaysia's Palm Oil Conference and Price Outlook opens. The three-day conference will bring producers, industry analysts, investors and consumers to assess the palm oil market, where prices have fallen 6% so far this year. Crude palm oil production in Malaysia and Indonesia, which account for four-fifths of global palm oil output, is improving after persistently bad weather in 2010--beginning with an El Nino-related drought and ending with a La Nina-related excess of rain--induced tree stress, sapping yields and cutting output. Output in Malaysia, which has declined for two consecutive years, may show a modest increase of around 4% this year to 17.6 million tons, Commodities Minister Bernard Dompok said. Output reached 17 million tons in 2010.
Improving crop prospects in both countries comes as South America is gearing up for a bigger soybean crop, as weather conditions improve and Brazil's soybean cultivation area expands. Brazil could harvest a record crop of 70 million tons of soybeans in 2011, according to Hamburg-based OilWorld, up from 68.6 million tons in 2010. "The major influence on (international vegetable oil) prices this year continues to be the supply factor...there may be a very large bean crop (from Brazil)," said Emily French, managing director at agri-business consulting firm ConsiliAgra in the U.S. Consumption of palm oil in China--one of the world's largest vegetable oil buyers--fell 12% in 2010 to 5.7 million tons as surging palm oil prices caused the tropical oil to lose market share to its rival, soyoil. China's palm oil demand may improve in 2011, as its government, concerned with rising food prices, may cut import tariffs on a range of products to stimulate imports, Vice-Minister of Commerce Zhong Shan said recently.
Argentine grains exchange holds soy harvest outlook
BUENOS AIRES, March 3 (Reuters) - Argentina's 2010/11 soy harvest is seen stable at 48.8 million tonnes, with crops in good shape despite drier weather over the last week, the Buenos Aires Grains Exchange said on Thursday.
Argentina, the world's third-biggest soy supplier, was affected by dry weather earlier this season, but heavy rains from mid-January onward have brightened the outlook for the harvest of the oilseed.
Palm oil prices rise to 1-wk high, tracks crude higher
JAKARTA, March 4 (Reuters) - Malaysian palm oil futures climbed to a one-week high with sentiment driven by rising crude prices as the crisis in Libya and parts of the Middle East showed little sign of resolution. "Palm oil is marginally higher," said one trader. "It is supported by steady crude oil. The revival of biodiesel is coming into play."
Malaysia's Feb palm oil stocks fall to 19-month lows
KUALA LUMPUR, March 4 (Reuters) - Malaysia's February palm oil stocks probably dropped to 19-month lows as overall demand outpaced almost flat production, a Reuters survey showed on Friday.
Stocks in the world's No. 2 producer probably fell 2.4 percent to 1.38 million tonnes, the lowest level since July 2009, but the pace of the decline has slowed, the median survey of six plantation houses showed.
Brazil on brink of new soy boom, easing food panic
SAO PAULO, March 4 (Reuters) - When soy futures hit record highs in 2008, Brazilian farmers were in no position to capitalize on the boom. Crippling debts, wild currency swings and high fertilizer and fuel costs rendered them unwilling or unable to sow more acres.
Today, although prices are almost 20 percent lower, conditions have rarely been better. Farmers, now flush with cash, are preparing the first sustained expansion of the country's soy crop after a half decade of stagnation.
Malaysia Palm Oil Conference Issues: Uncertain Demand, Rising Supply (Source: CME)
Rising food prices, concerns about demand aggravated by tensions in the Middle East, and improving global supplies of vegetable oils are some of the issues that will be in focus when Bursa Malaysia's Palm Oil Conference and Price Outlook opens. The three-day conference will bring producers, industry analysts, investors and consumers to assess the palm oil market, where prices have fallen 6% so far this year. Crude palm oil production in Malaysia and Indonesia, which account for four-fifths of global palm oil output, is improving after persistently bad weather in 2010--beginning with an El Nino-related drought and ending with a La Nina-related excess of rain--induced tree stress, sapping yields and cutting output. Output in Malaysia, which has declined for two consecutive years, may show a modest increase of around 4% this year to 17.6 million tons, Commodities Minister Bernard Dompok said. Output reached 17 million tons in 2010.
Improving crop prospects in both countries comes as South America is gearing up for a bigger soybean crop, as weather conditions improve and Brazil's soybean cultivation area expands. Brazil could harvest a record crop of 70 million tons of soybeans in 2011, according to Hamburg-based OilWorld, up from 68.6 million tons in 2010. "The major influence on (international vegetable oil) prices this year continues to be the supply factor...there may be a very large bean crop (from Brazil)," said Emily French, managing director at agri-business consulting firm ConsiliAgra in the U.S. Consumption of palm oil in China--one of the world's largest vegetable oil buyers--fell 12% in 2010 to 5.7 million tons as surging palm oil prices caused the tropical oil to lose market share to its rival, soyoil. China's palm oil demand may improve in 2011, as its government, concerned with rising food prices, may cut import tariffs on a range of products to stimulate imports, Vice-Minister of Commerce Zhong Shan said recently.
Argentine grains exchange holds soy harvest outlook
BUENOS AIRES, March 3 (Reuters) - Argentina's 2010/11 soy harvest is seen stable at 48.8 million tonnes, with crops in good shape despite drier weather over the last week, the Buenos Aires Grains Exchange said on Thursday.
Argentina, the world's third-biggest soy supplier, was affected by dry weather earlier this season, but heavy rains from mid-January onward have brightened the outlook for the harvest of the oilseed.
Palm oil prices rise to 1-wk high, tracks crude higher
JAKARTA, March 4 (Reuters) - Malaysian palm oil futures climbed to a one-week high with sentiment driven by rising crude prices as the crisis in Libya and parts of the Middle East showed little sign of resolution. "Palm oil is marginally higher," said one trader. "It is supported by steady crude oil. The revival of biodiesel is coming into play."
Malaysia's Feb palm oil stocks fall to 19-month lows
KUALA LUMPUR, March 4 (Reuters) - Malaysia's February palm oil stocks probably dropped to 19-month lows as overall demand outpaced almost flat production, a Reuters survey showed on Friday.
Stocks in the world's No. 2 producer probably fell 2.4 percent to 1.38 million tonnes, the lowest level since July 2009, but the pace of the decline has slowed, the median survey of six plantation houses showed.
Brazil on brink of new soy boom, easing food panic
SAO PAULO, March 4 (Reuters) - When soy futures hit record highs in 2008, Brazilian farmers were in no position to capitalize on the boom. Crippling debts, wild currency swings and high fertilizer and fuel costs rendered them unwilling or unable to sow more acres.
Today, although prices are almost 20 percent lower, conditions have rarely been better. Farmers, now flush with cash, are preparing the first sustained expansion of the country's soy crop after a half decade of stagnation.
Friday, March 4, 2011
20110304 1812 FCPO EOD Daily Chart Study.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : recovering, seller reducing position.
Support : 3650, 3620, 3550, 3500 level.
Resistance : 3700, 3720, 3750 level.
Comment :
FCPO closed higher for the 4th day decreasing exhanged after news on Reuters survey news of Malaysia Feb 2011 stock level fall to 10 month lows and ahead of next week 3 days MPOB Palm Oil Conference 2011 while firmer crude oil price seems affecting a soy oil prices to trade higher.
Daily chart formed a up bar candle continue to head toward middle Bolligner band level after market opened gap up, tested lower level and recovered upward surging higher closed near the high of the day.
Chart reading remained unchanged with a correction range bound 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.
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