FCPO closed : 3347, changed : -32 points (continuous chart down by 38 points), volume : higher.
Bollinger band reading : correction range bound, downside biased.
MACD Histrogram : resumed downward, seller taking changes.
Support : 3300, 3270, 3200, 3150 level.
Resistance : 3350, 3420, 3450, 3470 level.
Comment :
Changed month FCPO closed recorded loss with higher volume participation after overnight soy oil and most grains base commodities closed at or near daily limit down price and currently trading on upward technical rebound.
Daily chart formed an up bar doji bar candle positioned above lower Bollinger band level after market opened gap down, tested lower and recovered upward tested above resistance to closed near the high of the day after soy oil and crude oil started to recover upward after overnight falls.
Technical chart reading suggesting a correction range bound downside biased market development with the correction likely to test higher resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant with larger cut loss and profit target.
A place for all traders and investors of Futures Markets.
Wednesday, March 16, 2011
20110316 1757 FKLI EOD Daily Chart Study.
FKLI closed : 1492.5 changed : +13 points, volume : lower.
Bollinger band reading : pullback correction downside biased.
MACD Histrogram : turned upward, seller taking profit
Support : 1485, 1470, 1458, 1445 level.
Resistance : 1500, 1515, 1530, 1540 level.
Comment :
Recovery FKLI closed recorded gain with slower volume changed hand doing less than 2 point premium compare to cash market while regional markets ended higher on recovery mode with Japan Nikkei market leading the recovery up 5.68% after few day of selling down.
Daily chart formed the 4th doji bar candle with long lower shadow correction upward positioned between lower and middle Bollinger band level after market opened gap up, fall lower and recover to closed near the high of the day.
Chart reading suggesting a downside biased pullback correction taking place market development with the correction could possibly testing resistance near middle 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.
Bollinger band reading : pullback correction downside biased.
MACD Histrogram : turned upward, seller taking profit
Support : 1485, 1470, 1458, 1445 level.
Resistance : 1500, 1515, 1530, 1540 level.
Comment :
Recovery FKLI closed recorded gain with slower volume changed hand doing less than 2 point premium compare to cash market while regional markets ended higher on recovery mode with Japan Nikkei market leading the recovery up 5.68% after few day of selling down.
Daily chart formed the 4th doji bar candle with long lower shadow correction upward positioned between lower and middle Bollinger band level after market opened gap up, fall lower and recover to closed near the high of the day.
Chart reading suggesting a downside biased pullback correction taking place market development with the correction could possibly testing resistance near middle 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.
20110316 0921 Global Economic Related News.
Fed Upgrades Economic Outlook While Affirming Bond Stimulus (Bloomberg)
Federal Reserve policy makers said U.S. growth is becoming more durable and higher energy prices will have a temporary effect on inflation as they affirmed plans to buy $600 billion of Treasuries through June.
Portugal’s Long-Term Bond Ratings Cut to A3 From A1 by Moody’s (Bloomberg)
Portugal’s long-term debt rating was cut two steps by Moody’s Investors Service, which cited a “subdued” growth outlook, risks to implementing the government’s deficit-reduction plans, and a possible need to recapitalize its banks.
Japanese nuke crisis sends Asian markets into meltdown
Japan’s escalating nuclear crisis has sent markets in Asia into a meltdown as fears grow over the outcome from the troubled nuclear facilities. As the scale of the disaster grows by the day and Japan prepares for the worst from its three troubled nuclear facilities, the Nikkei 225 stock average fell a staggering 10.55% or 1,015.34 points to 8,605.13 points yesterday as fear gripped investors across region. The Hong Kong stock index fell 2.86% or 667.93 points to 22,678.25 points. Malaysian investors followed suit with the FTSE Bursa Malaysia Composite Index (FMB KLCI) falling 11.21 points or 0.75% to close at 1,484.11 points as the ringgit fell to RM3.065 against the USD from RM3.036 on Monday’s close. (Malaysian Reserve)
Japan: Stock rout threatens deeper economic pain, pressures BOJ
The steepest tumble in Japan’s stocks in a quarter-century threatens to worsen damage to the economy from last week’s earthquake and tsunami in a crisis policy makers have yet to contain. The Nikkei 225 Stock Average fell 16% the past two days, the most since 1987, as power outages forced companies to suspend output and officials warned of rising risk of radiation from a nuclear plant. Bank of America-Merrill Lynch further cut its forecasts for gross domestic product, which shrank last quarter, and JPMorgan Chase & Co. may do the same.(Bloomberg)
South Korea: Unemployment rate increased to 4% in February
South Korea’s unemployment rate unexpectedly rose to 4.0% in February from 3.6% in January, Statistics Korea said in Gwacheon today. The median estimate in a Bloomberg News survey of eight economists was for a jobless rate of 3.6%.(Bloomberg)
US: Import prices jumped in February on oil, food
The cost of goods imported into the US rose more than forecast in February, led by further gains in commodities that companies are struggling to pass along to their customers. The 1.4% increase in the import-price index exceeded the 0.9% median estimate in a Bloomberg News survey and followed a 1.3% rise in January, Labor Department figures showed today in Washington. Expanding economies in Asia and Latin America are generating greater demand for raw materials, and turmoil in Libya has pushed up crude oil prices. (Bloomberg)
US: Fed upgrades economic outlook while affirming bond stimulus
Federal Reserve policy makers said US growth is becoming more durable and higher energy prices will have a temporary effect on inflation as they affirmed plans to buy USD600bn of Treasuries through June. US stocks pared losses on the upgraded outlook from Fed Chairman Ben S. Bernanke and his colleagues, who dropped language that the recovery is “disappointingly slow” and that “tight credit” is holding back consumer spending. Central bankers went out of their way to acknowledge a rise in commodity prices while dismissing any inflation danger.(Bloomberg)
US: Global demand for US assets fell on lower bond buying
Global demand for US stocks, bonds and other financial assets fell in January from a month earlier on declines in purchases of US Treasury securities, according to the government’s international capital data.Net buying of long-term equities, notes and bonds totaled USD51.5bn during January compared with net buying of USD 62.5bn in December, according to the TICS data released today in Washington by the Treasury Department. Including short-term securities such as stock swaps, foreigners purchased a net USD32.5bn compared with net buying of USD49.7bn the previous month.(Bloomberg)
Federal Reserve policy makers said U.S. growth is becoming more durable and higher energy prices will have a temporary effect on inflation as they affirmed plans to buy $600 billion of Treasuries through June.
Portugal’s Long-Term Bond Ratings Cut to A3 From A1 by Moody’s (Bloomberg)
Portugal’s long-term debt rating was cut two steps by Moody’s Investors Service, which cited a “subdued” growth outlook, risks to implementing the government’s deficit-reduction plans, and a possible need to recapitalize its banks.
Japanese nuke crisis sends Asian markets into meltdown
Japan’s escalating nuclear crisis has sent markets in Asia into a meltdown as fears grow over the outcome from the troubled nuclear facilities. As the scale of the disaster grows by the day and Japan prepares for the worst from its three troubled nuclear facilities, the Nikkei 225 stock average fell a staggering 10.55% or 1,015.34 points to 8,605.13 points yesterday as fear gripped investors across region. The Hong Kong stock index fell 2.86% or 667.93 points to 22,678.25 points. Malaysian investors followed suit with the FTSE Bursa Malaysia Composite Index (FMB KLCI) falling 11.21 points or 0.75% to close at 1,484.11 points as the ringgit fell to RM3.065 against the USD from RM3.036 on Monday’s close. (Malaysian Reserve)
Japan: Stock rout threatens deeper economic pain, pressures BOJ
The steepest tumble in Japan’s stocks in a quarter-century threatens to worsen damage to the economy from last week’s earthquake and tsunami in a crisis policy makers have yet to contain. The Nikkei 225 Stock Average fell 16% the past two days, the most since 1987, as power outages forced companies to suspend output and officials warned of rising risk of radiation from a nuclear plant. Bank of America-Merrill Lynch further cut its forecasts for gross domestic product, which shrank last quarter, and JPMorgan Chase & Co. may do the same.(Bloomberg)
South Korea: Unemployment rate increased to 4% in February
South Korea’s unemployment rate unexpectedly rose to 4.0% in February from 3.6% in January, Statistics Korea said in Gwacheon today. The median estimate in a Bloomberg News survey of eight economists was for a jobless rate of 3.6%.(Bloomberg)
US: Import prices jumped in February on oil, food
The cost of goods imported into the US rose more than forecast in February, led by further gains in commodities that companies are struggling to pass along to their customers. The 1.4% increase in the import-price index exceeded the 0.9% median estimate in a Bloomberg News survey and followed a 1.3% rise in January, Labor Department figures showed today in Washington. Expanding economies in Asia and Latin America are generating greater demand for raw materials, and turmoil in Libya has pushed up crude oil prices. (Bloomberg)
US: Fed upgrades economic outlook while affirming bond stimulus
Federal Reserve policy makers said US growth is becoming more durable and higher energy prices will have a temporary effect on inflation as they affirmed plans to buy USD600bn of Treasuries through June. US stocks pared losses on the upgraded outlook from Fed Chairman Ben S. Bernanke and his colleagues, who dropped language that the recovery is “disappointingly slow” and that “tight credit” is holding back consumer spending. Central bankers went out of their way to acknowledge a rise in commodity prices while dismissing any inflation danger.(Bloomberg)
US: Global demand for US assets fell on lower bond buying
Global demand for US stocks, bonds and other financial assets fell in January from a month earlier on declines in purchases of US Treasury securities, according to the government’s international capital data.Net buying of long-term equities, notes and bonds totaled USD51.5bn during January compared with net buying of USD 62.5bn in December, according to the TICS data released today in Washington by the Treasury Department. Including short-term securities such as stock swaps, foreigners purchased a net USD32.5bn compared with net buying of USD49.7bn the previous month.(Bloomberg)
20110316 0920 Malaysia Corporate Related News.
KLCI Chart Reading : Downside biased with possible pullback but MACD indicator cross down
Sime Darby to buy 3 Aussie companies
Sime Darby, the world’s largest listed palm oil plantation company, plans to acquire three Australian firms for AUD19.6m (RM60m) to bolster its industrial division Down Under. The proposed acquisitions of Haynes Mechanical Pty Ltd, AC Haynes Investments Pty Ltd and DG Nominees Pty Ltd – all three privately-held – are expected to be completed by this week. The acquisition would enable Sime Darby to access the skilled labour market more effectively and ensure the business is sufficiently resourced to meet its growth objectives. (Malaysian Reserve)
MISC signs pact with MSC to improve operational efficiency
MISC has signed a memorandum of understanding (MoU) with Malaysia Shipping Corp (MSC) to improve operational efficiency. The MoU is also aimed at enhancing customers’ shipping experience when using the “Perdana” service. Under the MoU, the two shipping lines would continue to partner each other to operate the service. MISC said the two shipping lines would operate individual al loops based on their capability and capacity. (Malaysian Reserve)
Faber bullish on renewal of contract
Faber Group is positive that its 15-year concession services (HSS), which expires in October, will soon be renewed for another 15 years based on the group’s experience and track record. Adnan Mohammad, Faber Group managing director said the company was well-positioned for the concession renewal based on its financial ability. “We are waiting for a detailed discussion with the authorities. It is just a matter of time. The ball is now in the Government’s court,” he said. (Financial Daily)
Puncak Niaga inks JV with Ramky
Puncak Niaga Holdings sealed an agreement with Ramky Infrastructure Ltd yesterday to collaborate on the basis of mutual exclusivity in an unincorporated joint venture (JV) knows as RIL-PNHB Joint Venture. The joint venture is to source for potential water and water related projects in India. (Malaysian Reserve)
SingPost ups stake in GD Express
Singapore Post Ltd yesterday boosted its stake in Ace Market-listed GD Express Carrier to 27.08% from the initial 4.98%, positioning itself as a strategic investor in the Malaysian express delivery and logistics services provider. The acquisition will make the Malaysian company an associate of Singapore Post. (Financial Daily)
20110316 0850 Global Market Related News.
Chart reading : Downside biased with possible pullback correction
Chart reading : Downside biased with possible pullback correction
Chart reading : Downside biased with possible pullback correction
Chart reading : Downside biased with possible pullback correction
Overnight European and U.S. market traded lower.Meanwhile, Japan market are currently trading at recovery pace up 534pts.
U.S. corn drops to 2-month low on Japan fears
SINGAPORE, March 16 - U.S. corn extended losses on Wednesday, after sliding by its daily limit in the last session on fears of a Japanese nuclear catastrophe, but wheat and soy both rallied more than half a percent with Asia cautiously buying after the steep selloff.
"Grains have come down too far, too fast. The trade at the moment is to sell corn, buy wheat and soy. Weather concerns for corn had built in more of a premium," said Jonathan Barratt, managing director, Commodity Broking Services.
China farmers to grow more grains, cotton; less soy
BEIJING, March 16 (Reuters) - Chinese farmers plan to grow more grains and cotton this year while acreage for soy and sugar crops are likely to fall, the ministry of agriculture said.
Grain acreage is likely to grow 0.3 percent this year from last year, of which farmers intend to grow 2.1 percent more corn and 1.9 percent more rice in northeast provinces, the country's corn belt, the ministry said, citing a survey of farmers.
US farm supports, food stamps eyed for budget cuts
WASHINGTON, March 15 (Reuters) - From food stamps to crop subsidies, all U.S. agricultural programs are on the table for potential budget cuts as part of federal belt-tightening, said leaders of the House Agriculture Committee on Tuesday.
"Really, everything is on the table," said Chairman Frank Lucas after the committee approved a letter saying it wants to be part of the solution to a U.S. fiscal crisis.
Gold rebounds from 1-month low; equities recover
SINGAPORE, March 16 (Reuters) - Gold regained strength on Wednesday after falling to a 1-month low in the previous session, but declines in ETF holdings to their lowest in 10 months suggested that speculators could still sell bullion to raise liquidity if equities extend losses.
"I think sentiment is a bit mixed now. We don't know yet how the nuclear crisis will affect the world. Everything seems to stop in Japan, so the economy will deteriorate. We don't know whether if will affect other areas," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.
Japan stocks surge after rout, relief for Asia
SINGAPORE, March 16 (Reuters) - Asian financial markets rallied on Wednesday, with Tokyo stocks rebounding nearly 4.5 percent after a steep two-day sell-off on Japan's killer earthquake and unfolding nuclear crisis.
"The market doesn't care about any fundamentals today. All eyes are on the nuclear plant and the Nikkei will move according to the news about the plant," said Norihiro Fujito, a senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.
Oil : Oil drops 4.5 pct on Japan, Mideast clashes eyed
NEW YORK, March 15 (Reuters) - Brent crude prices tumbled 4.5 percent on Tuesday, the biggest drop in 13 months, as Japan's escalating nuclear crisis sparked risk aversion across markets, outweighing concerns about turmoil in Bahrain and Libya.
"It looks like the Japanese economy may be affected for a longer period than was thought last week," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.
COMMODITIES: Japan fears prompt steepest dive in months
NEW YORK, March 15 (Reuters) - A key commodity index posted its second-biggest fall in two years on Tuesday as the nuclear crisis in Japan sent fear rippling through financial markets, driving investors toward safer assets.
"It's not really fundamental concerns that Japan, one of the largest oil consumers, will be missing over the next few months," Commerzbank analyst Eugen Weinberg said.
GLOBAL MARKETS: Japan stocks surge after two-day rout
SINGAPORE, March 16 (Reuters) - Asian financial markets rallied on Wednesday, led by a nearly 6 percent surge in Japanese stocks, after a horrendous two-day sell-off on last week's killer earthquake and an unfolding nuclear crisis.
Other Asian stock markets also opened higher, but analysts warned that news of another fire at the Fukushima Daiichi nuclear plant in the morning and a quake last night in the Shizuoka area near Tokyo would keep investors on edge.
Renewed inflation seen as a risk for oil sands
EDMONTON, Alberta, March 15 (Reuters) - Hyperinflation remains a risk for Canadian oil sands producers as a return to high oil prices prompts a spate of new projects in the region, the head of Total SA's Canadian unit said on Tuesday.
Jean-Michel Gires said oil sands producers need to tap new pools of labor or face a possible return to the skyrocketing inflation that plagued the oil sands industry in 2007 and 2008, when the costs of some projects rose by half in a year.
U.S. crude inventories rise less than expected-API
NEW YORK, March 15 (Reuters) - U.S. crude oil inventories rose less than expected last week as stocks at the Cushing storage hub fell, data from the American Petroleum Institute showed on Tuesday.
Crude inventories in the United States rose 91,000 barrels in the week to March 11 from the week before. Analysts polled by Reuters had, on average, expected a 1.8-million-barrel build.
Steady Fed sees firmer economy, watchful on oil
WASHINGTON, March 15 (Reuters) - The Federal Reserve said on Tuesday the U.S. recovery is gaining traction and inflation pressure from soaring energy costs should be short-lived, allowing it to maintain its heavy support for the economy.
The U.S. central bank decided unanimously to forge ahead with its $600 billion bond-buying plan despite a considerably more upbeat assessment of the economy and the job market
Spent reactor fuel opens new risks in Japan crisis
NEW YORK, March 15 (Reuters) - A fire and blast at the building protecting a massive pool holding spent atomic fuel has taken Japan's nuclear crisis to a more critical level.
After days of Tokyo Electric Power Co's (TEPCO) struggle to regain control of overheating reactors, an explosion blasted holes at the outer building of the No. 4 reactor.
HSBC: Funds shift from Asian stocks to North American equities in 1Q (Malaysia Reserve)
The world's largest fund managers are shifting away from Asian stocks in the first-quarter (1Q)
Euro nations divided over how to boost aid (Malaysia Reserve)
European governments remained divided over how to boost the rescue fund for debt-strapped
US corn futures close limit down at a nearly 10-week low as Japan's nuclear crisis spooks traders into reducing risk. Investors pull cash out of risky assets in favor of more liquid holdings, analysts note. Commodity funds sold an estimated 22,000 contracts, a hefty amount. Corn led the downside in the grain markets as Japan is the world's top corn importer. Traders worry Japan may temporarily reduce its purchases following last week's disaster. CBOT May corn drops 30c limit to $6.36/bushel. (Source: CME)
US wheat futures finish sharply lower as concerns about the global economy spark widespread selling in commodity markets. The markets tumbled as corn and soybean futures dropped by their daily limits. Commodity funds were heavy sellers, unloading an estimated 12,000 wheat contracts at the CBOT. CBOT May wheat closes down 53c at $6.67 3/4 a bushel, while KCBT May wheat drops 48 1/2c to $7.77 and MGE May wheat loses 51 3/4c to $8.07 1/2. (Source: CME)
Canadian Wheat Board Anticipates Port Congestion In Japan (Source: CME)
Canada's western-based wheat farmers are bracing for potential delays in grain shipments reaching their Japanese customers, though none have materialized so far. "We really don't have a good specific sense" of the impact of Japan's tragedy on grain exports from Canada, Maureen Fitzhenry, a spokeswoman for the Canadian Wheat Board, said Monday. Controlled by western Canadian farmers, the Canadian Wheat Board is the largest wheat and barley marketer in the world. One of the biggest issues facing Japan-bound shipments is the accessibility of the country's ports to unload cargo. "There is certainly going to be some significant short-term congestion" as port closures in Japan force ships to wait to offload and take on cargo, particularly because Japan is a major importer of many commodities, Fitzhenry said.
Still, the Canadian Wheat board currently has ships in Vancouver loading for Japanese destinations and "at least one (ship) is on route, " Fitzhenry said. It takes an ocean vessel about two weeks to travel to Japan from Vancouver. The 10-year average for annual exports of wheat to Japan, including durum, by the Canadian Wheat Board is 1.2 million metric tons. Exports in 2009-10 including durum wheat were 1 million tons, plus 212,000 tons of bulk barley.
Japan Nuclear Explosion Unlikely To Taint Food Chain -Experts (Source: CME)
Radioactive material leaked from Japan's nuclear plants is unlikely to enter the food chain and the widespread contamination seen after the Chernobyl explosion is virtually impossible, experts said. Europe's Energy Commissioner Guenther Oettinger dubbed Japan's nuclear disaster an "apocalypse" after a massive earthquake and tsunami Friday triggered radiation leaks in the country's Fukushima Daiichi nuclear plant. Tokyo advised all people between 20 and 30 kilometers of the plant to stay inside and keep windows closed after one of the four reactors showing problems exploded. A 20 kilometer exclusion zone remains in place. The World Health Organization said Tuesday the only produce at risk is that grown in the immediate vicinity of the plants. "Our understanding is that there are no problems at the moment (from what) they've collected from the area, because it's totally inundated," said Maria Neira, the UN health agency's director of public health and environment.
A spokeswoman for the U.K.'s Food Standards Agency said the likelihood that any nuclear material has contaminated crops beyond the high-risk zone or spread overseas is minimal. "Local foods near the nuclear site could have been exposed if the wind was going inland at the time of any release," she said. "The vast majority of Japan's food chain will not be contaminated." High levels of radiation in food can potentially cause various kinds of cancers and abnormalities if they are digested, with children and babies particularly vulnerable to the effects. If radioactive particles get into the food chain by being absorbed into the water table it can cause problems across the entire sector; after the 1986 disaster in Chernobyl, Ukraine, 125,000 square miles were affected and 50,000 dairy cows were still producing contaminated milk four years later. Yet international agencies have been quick to reassure that Japan's crisis is nowhere near as severe as Ukraine's.
"It is wholly wrong to compare the situation to Chernobyl, which emitted a radioactive cloud 30,000 feet into the air for a long period of time," said the U.K.'s Foreign Office. Nuclear expert at Cambridge University Ian Farnan agreed, saying an explosion on that scale is extremely unlikely due to the different design of the Japanese reactors, meaning radiation is unlikely to contaminate food supplies. "There's not going to be an explosion like that even if we go into a situation where there's a meltdown," he said, adding that the type of radiation measured by the Japanese officials is unlikely to affect agriculture. "In terms of the articulate matter, the amounts are going to be very small," he said.
Farmland Fund Expects Prices To Keep Soaring (Source: CME)
Cheap farmland is hard to find. Values in Iowa and other key agricultural states jumped 12% in 2010, the second-biggest increase in the past 30 years, according to the Federal Reserve Bank of Chicago. Nationwide, prices have doubled during the past decade and climbed about 58% when adjusted for inflation, U.S. Department of Agriculture statistics show. Still, Greyson Colvin is hunting for deals as managing partner of two farmland funds for his agriculture-focused investment firm Colvin & Co., which aims to acquire undervalued properties. "The farmland market is certainly tighter than it's been over the last 12 months," Colvin acknowledged. Colvin manages about 1,500 acres of farmland in South Dakota and Wisconsin, worth $7 million, in the Sather Agriculture LP fund, along with about 350 acres held in individual accounts. The fund, which was launched in 2009, had a return of 29.6% in 2010, up from 7.8% in 2009, according to the company, compared with 15.1% and 26.5%, respectively, for the S&P 500.
There are signs investors will continue to reap gains from the sector, Colvin said. He touted farmland as "the one element that you can't replace across the agricultural equation" and said rising global demand for meat will keep pressure on growers to increase production of grain, which is used to feed livestock. The company targets land that produces corn and soybeans, the dominant crops in the fertile Midwest. Colvin and his brother-in-law, an associate in the company, inspect properties personally before making purchases to check their quality. He scoffed at observers who warn soaring land values may form a bubble. Agricultural fundamentals are the best in decades, he argued, saying rising farm income and cash rental rates justify the appreciation in farmland. "We really believe that farmland is actually underpricing commodities at this point in time,"
Colvin said. Indeed, farmers have the potential to cash in big on coming harvests, as corn, soybean and wheat futures recently surged above 2 1/2-year highs on concerns about tight supplies. Domestic corn inventories are expected to plunge to a 15-year low by the end of the crop's marketing year on Aug. 31 due to strong demand and a disappointing harvest last fall. If cash prices for corn, which is trading around $6.20 a bushel, remain above $5 at the end of the year, Colvin said farmland values should be up an additional 10% to 15%. The outlook for corn prices is uncertain because farmers are projected to harvest a record crop this fall to replenish supplies.
NALYSIS-Global growth to take glancing blow from Japan
LONDON, March 14 (Reuters) - The economic damage wrought on Japan by its devastating earthquake and tsunami is likely only to shave a sliver off global growth, but it could mean increased inflationary pressures for a longer period.
As the world's third largest economy, any fall in Japanese GDP will have a knock-on effect globally, just by dint of gearing down one of its largest drivers.
Rebuilding Japan will need metal, but months later
LONDON, March 14 (Reuters) - Rebuilding infrastructure and shoring up defences against natural disasters will boost Japan's demand for industrial metals -- eventually.
But first, stagnant industrial activity and power blackouts that have disrupted industrial production and halted production at copper and aluminium smelters and refineries are likely to erode demand.
ECB aims for gradual rate hikes - Bini Smaghi
FLORENCE, Italy, March 14 (Reuters) - The European Central Bank aims to "re-normalise" interest rates gradually to head off any increase in inflation expectations, ECB board member Lorenzo Bini Smaghi said on Monday.
"The ECB needs to be ready to react immediately to prevent any increase in inflation expectations," Bini Smaghi said at a conference in Florence. "We indicated to markets that they should prepare for a re-normalisation of interest rates."
PRECIOUS-Gold slides as Japan crisis batters commods
LONDON, March 15 (Reuters) - Gold slid by 2 percent to two-week lows on Tuesday, caught in a broad-based sell-off by commodity investors who grew increasingly unnerved by Japan's growing nuclear crisis.
"Gold has gone down less than other commodities, perhaps sometimes it just maybe is the proportional response which is the important thing," said Mitsubishi analyst Matthew Turner.
FOREX-Yen rises as risk appetite hammered by Japan crisis
LONDON, March 15 (Reuters) - The yen rose against higher yielding currencies on Tuesday as investors slashed positions in riskier assets on growing fears of a radiation catastrophe in Japan following last week's devastating earthquake.
"This will probably be a short, sharp correction, assuming things do not take a turn for the worse as regards the nuclear fallout in Japan," said ING currency strategist Chris Turner.
Grains slide after Japan nuclear plant crisis deepens
SINGAPORE, March 15 (Reuters) - Grains futures fell more than 1 percent part of a cross-asset flight from risk on the escalating crisis at a Japanese nuclear power complex following Friday's devastating earthquake and tsunami. "It's external macro and geo-political factors that are driving grains markets. There has been nothing fundamental in grains that could have driven prices down -- it's just more risk off," said Victor Thianpiriya, agricultural commodity analyst at ANZ in Melbourne.
Britain adds voice to criticism of EU GM crop plans
BRUSSELS, March 14 (Reuters) - Britain became the latest European Union country on Thursday to raise serious doubts over proposals to let EU governments decide individually whether to grow or ban genetically modified (GM) crops.
Several large EU countries including France, Germany and Spain have already criticised draft legislation tabled by the EU executive in July, which would allow governments to restrict or ban GM cultivation in all or part of their territories.
Farmers who can't hedge could fail- Lumix
LONDON, March 15 (Reuters) - Volatile agricultural commodity prices will drive farmers out of business if they don't understand how to use financial markets to hedge risk, the managing partner of fund manager Lumix Capital said.
"Price volatility will drive out a lot of farmers that purely have farming knowledge and not financial knowledge," Switzerland-based Gonzalo Fernandez-Castro said.
Record food prices to spur
SINGAPORE, March 15 (Reuters) - Farmers will sow more acres and pour more funds into agriculture this year to boost yields across the top producer nations as record high food prices jolt markets and send buyers scurrying for supplies.
While crops in top grain exporter the United States will battle for acres in the upcoming spring planting season, the developing world is expected to deploy resources to expand agriculture and improve stagnating productivity.
World faces risk of another food crisis-FAO chief
ABU DHABI, March 14 (Reuters) - Surging global prices of basic foodstuffs is raising the risk of another food crisis like the one that hit developing countries in 2007-2008, the head of the UN's Food and Agriculture Organization said on Monday.
A surge in oil prices and the fast recent drawdown in global stocks of cereals raise the specter of a return to a supply crisis, FAO Director General Jacques Diouf told Reuters in an interview during a visit to the United Arab Emirates.
20110316 0836 Soy Oil & Palm Oil Related News.
Broad commodities sell off including soy oil due to fear on global economy growth sustainability lead to closed at or near daily limit down price could affect FCPO to to opened gap down lower.
U.S. soybean futures fall on renewed concerns about the global economy and fears of slowing demand from Japan. Soybean futures drop by their daily exchange-imposed limit, as market participants continue to bail out of markets until there is a "return to a sense of normalcy" following last week's disasters in Japan, predicts Brian Hoops, president of Midwest Market Solutions. The uncertainty in global markets and the implications of a slowdown in Japan will have on global economic growth kept investors shedding risk exposure. CBOT May soybeans settle 70c or 5.2% lower at $12.70 as bushel. (Source: CME)
Soy-product futures end sharply lower, tumbling in unison with a broad-based selloff across most asset classes on renewed fears of global economic slowdown. Investors rushed to exit riskier assets in favor of cash. Soyoil futures dropped its daily exchange-imposed limit, with spillover pressure from a hard slide in crude oil adding to the losses. CBOT May soyoil ended 2.5c lower at 52.88c/pound while May soymeal slid 4.1% to $340.80/short ton. (Source: CME)
Quake to cut US corn, soy imports by Japan-analyst
CHICAGO, March 14 (Reuters) - Japanese demand for U.S. corn may drop 3 to 7 percent and demand for soybeans could dip 8 percent after last week's earthquake and tsunami damaged or destroyed ports, feed mills and meat-processing facilities, a top U.S. commodities analyst said on Monday.
Corn imports by the top U.S. corn buyer could drop by 500,000 to 1 million tonnes while soybean imports by Japan, the No. 3 market for U.S. soybeans, may decline by 250,000 tonnes, said Dan Basse, analyst with AgResource Co.
Palm oil down to near 4-mth low on Japan nuclear plant blasts
JAKARTA, March 15 (Reuters) - Malaysian palm oil futures fell to near four-month lows as jittery commodity investors sought perceived safe haven assets after fresh explosions rocked a damaged nuclear plant in earthquake-hit Japan. "A sell-off in equities has also had an impact on commodities," said one palm oil analyst. "People are becoming more risk-averse. The stimulus Japan will now put in, will put them back (economically) for years.
Rain boosts Argentine soy as harvest kicks off
BUENOS AIRES, March 14 (Reuters) - Heavy rainfall over the weekend has boosted Argentine soy and early-planted crops should not need more rain before harvest time, a specialist in crop weather said on Monday.
Argentina is the world's No. 1 exporter of soyoil and soymeal and its No. 3 soybean supplier, as well as a major producer of both corn and wheat.
U.S. soybean futures fall on renewed concerns about the global economy and fears of slowing demand from Japan. Soybean futures drop by their daily exchange-imposed limit, as market participants continue to bail out of markets until there is a "return to a sense of normalcy" following last week's disasters in Japan, predicts Brian Hoops, president of Midwest Market Solutions. The uncertainty in global markets and the implications of a slowdown in Japan will have on global economic growth kept investors shedding risk exposure. CBOT May soybeans settle 70c or 5.2% lower at $12.70 as bushel. (Source: CME)
Soy-product futures end sharply lower, tumbling in unison with a broad-based selloff across most asset classes on renewed fears of global economic slowdown. Investors rushed to exit riskier assets in favor of cash. Soyoil futures dropped its daily exchange-imposed limit, with spillover pressure from a hard slide in crude oil adding to the losses. CBOT May soyoil ended 2.5c lower at 52.88c/pound while May soymeal slid 4.1% to $340.80/short ton. (Source: CME)
Quake to cut US corn, soy imports by Japan-analyst
CHICAGO, March 14 (Reuters) - Japanese demand for U.S. corn may drop 3 to 7 percent and demand for soybeans could dip 8 percent after last week's earthquake and tsunami damaged or destroyed ports, feed mills and meat-processing facilities, a top U.S. commodities analyst said on Monday.
Corn imports by the top U.S. corn buyer could drop by 500,000 to 1 million tonnes while soybean imports by Japan, the No. 3 market for U.S. soybeans, may decline by 250,000 tonnes, said Dan Basse, analyst with AgResource Co.
Palm oil down to near 4-mth low on Japan nuclear plant blasts
JAKARTA, March 15 (Reuters) - Malaysian palm oil futures fell to near four-month lows as jittery commodity investors sought perceived safe haven assets after fresh explosions rocked a damaged nuclear plant in earthquake-hit Japan. "A sell-off in equities has also had an impact on commodities," said one palm oil analyst. "People are becoming more risk-averse. The stimulus Japan will now put in, will put them back (economically) for years.
Rain boosts Argentine soy as harvest kicks off
BUENOS AIRES, March 14 (Reuters) - Heavy rainfall over the weekend has boosted Argentine soy and early-planted crops should not need more rain before harvest time, a specialist in crop weather said on Monday.
Argentina is the world's No. 1 exporter of soyoil and soymeal and its No. 3 soybean supplier, as well as a major producer of both corn and wheat.
Tuesday, March 15, 2011
20110315 1828 FCPO EOD Daily Chart Study.
FCPO closed : 3385, changed : +50 points, volume : lower.
Bollinger band reading : pullback correction downside biased.
MACD Histrogram : turned upward, seller lock in profit.
Support : 3350, 3300, 3270, 3200 level.
Resistance : 3420, 3450, 3470, 3500 level.
Comment :
170 points range FCPO closed recorded gain with lower volume changed hand after ITS & SGS released lower but improved export data triggered seller to lock in profit while crude oil and soy oil still traded weaker.
Daily chart formed an up bar candle with small upper shadow closed above lower Bollinger band level after market opened gap down substantially and recovered upward to closed record gain forming a bullish engulfing candle stick formation and a possible MACD histrogram positive divergence.
Chart reading suggesting a downside biased market development with pullback correction taking place and the correction is likely to test higher resistance level possibly near middle Bollingner band level after last few days of severe falls.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant with larger cut loss and profit target.
Bollinger band reading : pullback correction downside biased.
MACD Histrogram : turned upward, seller lock in profit.
Support : 3350, 3300, 3270, 3200 level.
Resistance : 3420, 3450, 3470, 3500 level.
Comment :
170 points range FCPO closed recorded gain with lower volume changed hand after ITS & SGS released lower but improved export data triggered seller to lock in profit while crude oil and soy oil still traded weaker.
Daily chart formed an up bar candle with small upper shadow closed above lower Bollinger band level after market opened gap down substantially and recovered upward to closed record gain forming a bullish engulfing candle stick formation and a possible MACD histrogram positive divergence.
Chart reading suggesting a downside biased market development with pullback correction taking place and the correction is likely to test higher resistance level possibly near middle Bollingner band level after last few days of severe falls.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant with larger cut loss and profit target.
20110315 1731 FKLI EOD Daily Chart Study.
FKLI closed : 1479 changed : -12 points, volume : higher.
Bollinger band reading : downside biased with possible pullback.
MACD Histrogram : falling lower, seller increase exposure
Support : 1470, 1458, 1445, 1425 level.
Resistance : 1485, 1500, 1515, 1530 level.
Comment :
26.5 points range FKLI closed recorded loss with higher volume transacted for the 4th day doing 5 points discount compare to cash market while regional markets ended substantially lower(particularly Japan down 10.55%, Taiwan down 3.35% and Hong Kong down 2.86%) after news on Japan earthquake damage getting worst with nuclear power plant 4th reactor on fire plus exposure on radioactive into larger area.
Daily chart formed the third doji bar candle with long upper and lower shadows positioned right at lower Bollinger band level after market opened gap down, tested higher and plunged lower before recover upward to salvage partial of the losses to closed off the low of the day.
Chart reading wise, market is likely to trade downside biased with possible pullback correction should recovery on Japan nuclear power plant take place else market could still test lower support levels as MACD indicator is having a negative cross down today.
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.
Bollinger band reading : downside biased with possible pullback.
MACD Histrogram : falling lower, seller increase exposure
Support : 1470, 1458, 1445, 1425 level.
Resistance : 1485, 1500, 1515, 1530 level.
Comment :
26.5 points range FKLI closed recorded loss with higher volume transacted for the 4th day doing 5 points discount compare to cash market while regional markets ended substantially lower(particularly Japan down 10.55%, Taiwan down 3.35% and Hong Kong down 2.86%) after news on Japan earthquake damage getting worst with nuclear power plant 4th reactor on fire plus exposure on radioactive into larger area.
Daily chart formed the third doji bar candle with long upper and lower shadows positioned right at lower Bollinger band level after market opened gap down, tested higher and plunged lower before recover upward to salvage partial of the losses to closed off the low of the day.
Chart reading wise, market is likely to trade downside biased with possible pullback correction should recovery on Japan nuclear power plant take place else market could still test lower support levels as MACD indicator is having a negative cross down today.
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.
20110315 1022 Global Economic Related News.
China: New loans, money supply growth slow after tightening
China’s lending and money supply grew by less than economists expected in February, aiding the government’s campaign to rein in prices in the fastest-growing major economy. Banks extended RMB535.6bn of new localcurrency loans last month, compared with the RMB600bn median estimate. M2, the broadest measure of money supply, climbed 15.7% compared with the median forecast of 17%. February’s new loans compared with RMB700bn a year earlier and RMB1.04trn in January. (Bloomberg)
China: Manufacturing surpassed US in 2010
China’s manufacturing sector surpassed that of the US last year to take the world’s No 1 spot, boosted by faster economic growth. China’s manufacturing added almost USD2trn the country’s GDP in 2010, compared with USD1.95trn in the US. That’s the first time China has topped the US since data collection began after World War II. The US ranked first in 2009, with USD1.73trn in value added, a drop of more than 8% from 2008 on an inflation-adjusted basis. China was second, with USD1.69trn, an increase of 11%. (Bloomberg)
Japan: Bank of Japan pumps cash, boosts asset purchases
The Bank of Japan (BOJ) poured a record amount of cash into the financial system and doubled the size of its asset-purchase plan to shield the economy from the effects of the nation’s strongest earthquake on record. The central bank pumped JPY15trn (USD183bn) into money markets to assure financial stability amid a plunge in stocks and surge in credit risk. The BOJ also enlarged a program buying assets from government bonds to exchange-traded funds by JPY5trn. Corporate debt will rise by JPY1.5trn and it will also take on an additional JPY450bn in ETFs and JPY50bn in REITs. (Bloomberg)
India: Inflation rate unexpectedly accelerates
India’s inflation unexpectedly accelerated in February, increasing pressure on the central bank to raise interest rates this week for the eighth time in a year. The wholesale-price index rose 8.31% y-o-y after an 8.23% jump in January. The median forecast was for a 7.8% increase. Manufacturing inflation accelerated to 4.9% in February from 3.8% in January. Fuel inflation quickened to 11.49% last month. (Bloomberg)
UK: Fitch affirms AAA rating on ‘strong’ budget plan
Fitch Ratings said the UK should keep its top credit grade, citing the government’s efforts to reduce the budget deficit and the easing of risks related to the banking industry. Fitch commented that the strong budgetary consolidation effort and declining fiscal risks arising from the UK financial sector support the ‘stable outlook’ on the AAA ratings. Fitch said the “principal risk” to the rating is a weaker-than-expected recovery that forced the government to reassess its fiscal plans and led to additional bank strains. However, it does not currently consider these threats “to be sufficiently material to threaten” the AAA rating. (Bloomberg)
China: Lending and money supply grew by less than economists expected in February, aiding the government's campaign to rein in prices in the fastest-growing major economy. Banks extended CNY 535.6b (USD81.5b) of new local-currency loans last month. M2, the broadest measure of money supply, climbed 15.7% YoY. (Source: Bloomberg)
Japan: Moody's sees risk of hitting fiscal 'tipping point'. Japan may "at some point" reach a fiscal "tipping point" if investors lose confidence in the soundness of government finances and demand a risk premium on the nation's bonds, Moody's Investors Service said. The March 11 earthquake "may have shifted such a potential tipping point a bit forward, unless Japan's political parties are galvanized by the crisis to also address the country's long- term fiscal challenges," Tom Byrne, a senior vice president with Moody's, said in an emailed note. (Source: Bloomberg)
China’s lending and money supply grew by less than economists expected in February, aiding the government’s campaign to rein in prices in the fastest-growing major economy. Banks extended RMB535.6bn of new localcurrency loans last month, compared with the RMB600bn median estimate. M2, the broadest measure of money supply, climbed 15.7% compared with the median forecast of 17%. February’s new loans compared with RMB700bn a year earlier and RMB1.04trn in January. (Bloomberg)
China: Manufacturing surpassed US in 2010
China’s manufacturing sector surpassed that of the US last year to take the world’s No 1 spot, boosted by faster economic growth. China’s manufacturing added almost USD2trn the country’s GDP in 2010, compared with USD1.95trn in the US. That’s the first time China has topped the US since data collection began after World War II. The US ranked first in 2009, with USD1.73trn in value added, a drop of more than 8% from 2008 on an inflation-adjusted basis. China was second, with USD1.69trn, an increase of 11%. (Bloomberg)
Japan: Bank of Japan pumps cash, boosts asset purchases
The Bank of Japan (BOJ) poured a record amount of cash into the financial system and doubled the size of its asset-purchase plan to shield the economy from the effects of the nation’s strongest earthquake on record. The central bank pumped JPY15trn (USD183bn) into money markets to assure financial stability amid a plunge in stocks and surge in credit risk. The BOJ also enlarged a program buying assets from government bonds to exchange-traded funds by JPY5trn. Corporate debt will rise by JPY1.5trn and it will also take on an additional JPY450bn in ETFs and JPY50bn in REITs. (Bloomberg)
India: Inflation rate unexpectedly accelerates
India’s inflation unexpectedly accelerated in February, increasing pressure on the central bank to raise interest rates this week for the eighth time in a year. The wholesale-price index rose 8.31% y-o-y after an 8.23% jump in January. The median forecast was for a 7.8% increase. Manufacturing inflation accelerated to 4.9% in February from 3.8% in January. Fuel inflation quickened to 11.49% last month. (Bloomberg)
UK: Fitch affirms AAA rating on ‘strong’ budget plan
Fitch Ratings said the UK should keep its top credit grade, citing the government’s efforts to reduce the budget deficit and the easing of risks related to the banking industry. Fitch commented that the strong budgetary consolidation effort and declining fiscal risks arising from the UK financial sector support the ‘stable outlook’ on the AAA ratings. Fitch said the “principal risk” to the rating is a weaker-than-expected recovery that forced the government to reassess its fiscal plans and led to additional bank strains. However, it does not currently consider these threats “to be sufficiently material to threaten” the AAA rating. (Bloomberg)
China: Lending and money supply grew by less than economists expected in February, aiding the government's campaign to rein in prices in the fastest-growing major economy. Banks extended CNY 535.6b (USD81.5b) of new local-currency loans last month. M2, the broadest measure of money supply, climbed 15.7% YoY. (Source: Bloomberg)
Japan: Moody's sees risk of hitting fiscal 'tipping point'. Japan may "at some point" reach a fiscal "tipping point" if investors lose confidence in the soundness of government finances and demand a risk premium on the nation's bonds, Moody's Investors Service said. The March 11 earthquake "may have shifted such a potential tipping point a bit forward, unless Japan's political parties are galvanized by the crisis to also address the country's long- term fiscal challenges," Tom Byrne, a senior vice president with Moody's, said in an emailed note. (Source: Bloomberg)
20110315 1014 Malaysia Corporate Related News.
KLCI Daily Chart
George Kent plans to increase exports by 80%
George Kent (Malaysia) wants to increase its exports of water meters and brass products by up to 80% in the next two to three years from the present 55%. The company also plans to invest up to RM100m over the next three to four years to expand its meter and original equipment manufacturing (OEM) businesses. Its chairman Tan Sri Tan Kay Hock said it is looking to increase its exports to 20 countries as the demand for water meters grow. This is due to high demand for houses and apartments and the need to replace old meters. (BT)
Public Bank’s Teh celebrates birthday with promise of nice dividend present
Shareholders gave a lot of applause and sang “Happy Birthday” to Public Bank chairman Tan Sri Teh Hong Piow at the group's AGM yesterday where he set a medium-term target of achieving a net return on equity (ROE) of above 26% and an impaired loan ratio of below 1% as he believes the banking sector in Malaysia would be able to maintain its profitability despite uncertainty in the global markets. Chief operating officer Leong Kwok Nyem said Public Bank could maintain a dividend payout ratio of 50% in the medium term. (StarBiz)
Smartag to raise RM17.7m in ACE listing
Smartag Solutions is aiming to raise RM17.7m in its initial public offering (IPO) in the Ace Market in the second quarter of 2011. Approximately RM3.4m from the IPO proceeds would be channeled into further enhancing the company’s R&D expertise. Incorporated in 2004, Smartag is a provider of total RFID-based solutions, (Financial Daily)
Benalec gets Melaka reclamation works
Benalec Holdings has entered into an agreement with Yayasan DMDI, a company set up up by the Melaka state government, to undertake reclamation works for the latter. James Cekap, a wholly owned unit of Benalec, had on the same day entered into a deed of assignment with DMDI, wherby the latter had agreed to sign its rights and transfer its liabilities and obligations of the concession to reclaim a piece of land in Melaka for the former. On 11 March, the Melaka government granted DMDI the right to reclaim a portion of the coast of Kawasan Kota Laksamana in Bandar Melaka. Upon the reclamation works, the reclaimed land will measure about 101.1 hectares. (Financial Daily))
Axis Global Industrial REIT set at indicative price range of RM1.00-1.05
The initial public offering for Malaysia's Axis Global Industrial REIT has been set at an indicative price of RM1.00-1.05 a unit, two sources who have seen the information memorandum told Reuters. The share base of about 2 billion units prices the IPO at between RM2.0bn-RM2.1bn. Axis Global Industrial will hold about 35% debt level, which translates into a net asset value of about RM2.02bn. Sources with direct knowledge of the deal told Reuters that Axis REIT Management SB would list Axis Global Industrial REIT in 2Q this year, in what would be the world's largest sharia’ real estate investment trust with more than RM3bn in assets. (Reuters)
Fitters gets RM33m job
Fitters Diversified announced that its wholly-owned subsidiary Z-odd Design SB had been awarded a contract worth RM32.98m for the construction and completion of fit-out works for Kidzania Kuala Lumpur, an indoor educational theme park. The duration of the project is seven months and will contribute positively to their earnings. (Financial Daily)
SP Setia: More medium-cost apartments in Setia Alam. SP Setia Bhd plans to launch at least another 300 units of medium cost apartments in its Setia Alam township in the near future to benefit from the government's "My First Home Scheme". (Source: The Edge Financial Daily)
TM: Unit gets a further 10-year concession deal on Menara KL. Telekom Malaysia Bhd's (TM) subsidiary Menara Kuala Lumpur Sdn Bhd (MKLSB) has signed a 10-year concession agreement worth RM50m with the Government. (Source: Bursa Malaysia)
TDM: To build private specialist hospital in Kuantan. Terengganu Development Management (TDM) Bhd will build a RM120m private specialist hospital in Kuantan. The construction is expected to be completed by next year. (Source: The Edge Financial Daily)
Cocoaland: Buys Rawang land. Cocoaland Holdings Bhd is acquiring two pieces of industrial land in Rawang for RM7.85m from Riviera Properties Sdn Bhd. The lands are acquired for the construction of a factory and warehouse. (Source: Bursa Malaysia)
George Kent: To invest up to RM100m to expand ops. George Kent (M) Bhd plans to invest up to RM100m in the next three to four years to expand its meter and original equipment manufacturing (OEM) businesses. (Source: The Star)
APFT: Public subscription over subscribed. APFT Bhd's 15m shares allocated for public subscription has been oversubscribed by 12x. The company will be listed on the Main Market of Bursa Malaysia on March 18. (Source: The Star)
Benalec: Gets Melaka reclamation works. Benalec Holdings Bhd has entered into an agreement with Yayasan DMDI (DMDI) to undertake reclamation works at the coast of Kawasan Kota Laksamana in Bandar Melaka. (Source: Bursa Malaysia)
Plantation: Only 10 biodiesel plants operating. The government has issued 60 biodiesel manufacturing licences as at end-February 2011 but only less than one fifth has started production. This is due to the lack of demand for biodiesel exports and high palm oil prices in the 2H10. (Source: Business Times)
20110315 1000 Global Market Related News.
Brent drops below $112 after Japan nuclear plant blasts
SINGAPORE, March 15 (Reuters) - Brent crude fell by as much as 1.9 percent to below $112 after explosions rocked an earthquake-stricken Japanese nuclear plant on Tuesday, sending radiation levels higher and dampening sentiment across financial markets.
"People are going for risk aversion, so investors are liquidating assets and positions including in crude oil and gold," said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd.
Gold down 1 pct as equities tumble on Japan quake
SINGAPORE, March 15 (Reuters) - Gold slid more than 1 percent on Tuesday as declines in stock markets triggered by a deepening nuclear crisis in Japan prompted speculators to sell bullion to cover losses, while holdings on the ETF fell to their lowest since May last year.
"It still looks like it's constructive. It's just consolidating. But if we get a large sell-off in equities, people will tend to sell gold," said Jonathan Barratt, managing director of Commodity Broking Services in Melbourne.
Japan shares plunge on nuclear woes, hitting other assets
SEOUL, March 15 (Reuters) - Japanese shares plunged more than 14 percent on Tuesday as fresh explosions rocked a damaged nuclear plant and triggered a rise in radiation levels, sending investors fleeing from riskier assets such as equities and commodities across Asia.
"All focus is on the nuclear crisis. In the situation where the crisis appears to be worsening, foreign investors and domestic fund operators are pulling out from Japanese shares," Hideyuki Ishiguro, a supervisor at Okasan Securities in Tokyo.
Oil : Oil steady above $101, Japan, Saudi move eyed
SINGAPORE, March 15 (Reuters) - U.S. oil was steady above $101 on Tuesday, with investors weighing the risk from Saudi Arabia's troop deployment to Bahrain and wider tensions in the Middle East against the near-term demand sapping impact from Japan's earthquake.
Brent was also little changed -- down about 0.2 percent from Monday -- while natural gas extended gains on expectation that Japan will buy more LNG and other hydrocarbons to make up for the loss of nuclear power capacity.
COMMODITIES: Markets roiled by Japan; Saudi tensions support oil
NEW YORK/LONDON, March 14 (Reuters) - Brent oil hit a 2-1/2-week low in volatile trade on Monday before recovering and gold rose, as commodity investors weighed the impact of Japan's earthquake against rising tension in the Middle East.
"Japan's demand is expected to be way down in the near to medium term. But Saudi troops in Bahrain and fighting in Yemen and Libya bounced crude off their lows," said Phil Flynn, analyst at PFGBest Research in Chicago.
GLOBAL MARKETS: Asia stocks post losses at open, Nikkei falls 5 pct
SEOUL, March 15 (Reuters) - Shares in Asia's developed markets outside of Japan fell modestly on Tuesday on losses in the resource sector and companies exposed to the nuclear industry.
Japan's Nikkei average opened down 1.9 percent but quickly extended losses to trade down 5 percent, adding to losses of more than 6 percent on Monday. The yen fell slightly to 81.80 against the dollar.
Shell to update on investment plans amid turmoil
AMSTERDAM/LONDON, March 15 (Reuters) - Royal Dutch Shell will update investors on Tuesday on its exploration and production pipeline as continuing political unrest in the Arab world clouds the short-term outlook in the oil market.
Shell has been generating more cash after investing more than $100 billion in exploration and production over the past five years, so the focus is on how much it plans to invest after 2012 and the level to which it expects production to rise.
US wheat futures recover from sharp losses as lower prices attract buyers. The markets rebound from recent sell-offs with corn and soybeans. Grains took a hit Friday from concerns natural disasters would reduce demand from Japan, a major importer. Yet, delays in shipments and purchases are expected to be only temporary, analysts say. CBOT May wheat closes up 2c at $7.20 3/4 a bushel, while KCBT May wheat gains 2 1/2c to $8.25 1/2 and MGE May wheat rises 3/4c to $8.59 1/4. (Source: CME)
US corn futures finish slightly higher, snapping a six-session slide as users of the grain enter the market looking for a bargain. Buyers remain nervous about supplies, which are projected to fall to a 15-year low by the end of the crop's marketing year on Aug. 31. Trader suspect prices may have established a near-term low after reports of devastation in Japan did not push the market to a fresh low early Monday, says Jack Scoville, vice president of Price Futures Group. The market dropped nearly 11% last week. CBOT May corn rises 1 3/4c to $6.66. (Source: CME)
Earthquake's Impact On US Grain Exports Depends On Port Damage (Source: CME)
The location of Japan's devastating earthquake and tsunami is likely to limit the impact on trade of U.S. agricultural commodities, though export groups say they still don't have a clear assessment of infrastructure damage. Japan is the biggest customer for U.S. corn and pork exports, as well as a key consumer of soybeans and wheat. The disaster is expected to have initial impacts on the flow of goods into the country, yet the prolonged impact will hinge on the health of ports in central and southern areas and how widespread destruction is throughout the country. The massive earthquake Friday hit northeast sections of Japan the hardest. The disaster may have cut Japan's grain-warehousing capability by 15% to 20%, which could curb imports as the country has fewer places to store grains, according to AgResource Co., a Chicago advisory firm. The firm estimates the damage to storage could trim Japan's near-term corn imports by 500,000 to 1 million metric tons.
The country accounts for nearly 30% of U.S. corn exports, bringing in 15.4 million metric tons in the most recent crop year. The U.S. Grains Council said Friday that the disaster "could be of significance" to the grain trade. Yet a bulk of the damage appears to be at ports located in northern parts of the country, which are too small to handle U.S. ships, while larger ports in southern areas could be up and running in the next week, wrote Morgan Stanley analyst Hussein Allidina in a note to clients. "If this turns out to be the case, we expect no impact to trade flows," Allidina said. Feed-processing facilities have also been damaged, analysts said, which could disrupt imports as well. But the facilities are mostly located in the central part of the country, which wasn't been hit as hard, said Parr Rosson, an agricultural economist at Texas A&M University. Rosson said the overall impact will depend on how many people have been displaced or killed.
He added that with damage limited in major cities, long-term demand for agricultural commodities might not be significantly hurt. The U.S. Meat Export Federation won't make any revisions to its export forecasts until the trade group receives "factual information about the actual impact on factors such as consumer demand, Japan's national economy and domestic production and inventories," a federation spokesman wrote in an email. Tyson Foods Inc., which exports beef, chicken and pork, was "not currently aware of any disruption to our exports to Japan," a spokesman said in an email. Japan is the top international customer for U.S. pork in terms of sales dollars, accounting for nearly $1.646 billion in 2010, over 34% of U.S. total pork exports, according to data from the U.S. Department of Agriculture and U.S. Meat Export Federation. The disaster could have more direct impact on the rice market. Morgan Stanley noted that the tsunami appeared to hit Japan's rice-growing areas hard.
U.K. 2010 Food And Drink Exports Up 11.4% To Over GBP10 Bln (Source: CME)
U.K. food and non-alcoholic drink exports topped GBP10 billion for the first time last year, the Food and Drink Federation said, marking the sixth consecutive year of record export performance. The value of shipments rose 11.4% to GBP10.83 billion, more than double 2009's growth rate of 5.1%, due to "exceptionally strong growth in both mature and developing non-European Union markets," the report said. Although Ireland, France and the Netherlands remain the principal importers of U.K. goods, growth in Africa and a 34.6% rise in Asian imports meant non-European Union buyers accounted for 23.1% of exports, compared with 20.6% in 2009. Rising soft commodity prices also gave figures a boost. Second-half performance was responsible for nearly three-quarters of total growth between 2009 and 2010 as inflation tripled from 1.9% in January to 6.1% by December.
China Vice Minister: Too Early To Project 2011 Grain Output Rise (Source: CME)
While China remains hopeful for an increase in its summer grain output this year, it is too early to project whether the country's full-year grain harvest will rise, Vice Minister for Agriculture Wei Chaoan said. His comments add uncertainty to an already complicated grain outlook in the middle of prolonged drought that is affecting major wheat producing areas and local governments that raised their grain output targets for this year. Speaking at a press conference on the sidelines of the National People's Congress, China's legislature, Wei said China aims to stabilize its grain output at more than 500 million metric tons this year, ensure such output stays a top priority over the next five years and wants domestic grain output to supply more than 95% of demand. China is likely to reap the summer harvest this year as drought has not made a serious impact on wheat, Wei said. "The overall situation of summer grain production is good," he said, adding wheat acreage has increased and sowing quality was sound.
Summer grain, most of which is wheat, accounts for only 20% of total grain output, Wei said. Autumn grain, which includes medium- and late-season rice and corn, contributes about 70% of total grain output. Early-season rice represents about 10%. China's Shandong province, the nation's second-largest wheat producer, is expected to produce slightly more wheat this year, the local agricultural department said. Henan, China's top wheat producer, said previously it aimed to produce 31.25 million tons of wheat this year, up from 2009's 30.56 million tons. Wei said China consumed 54.6 million tons of fertilizer last year, adding the nation's production capacity of nitrogenous fertilizer has far exceeded its demand, but potash and phosphate fertilizer need imports. Commenting on vegetable prices that have been rising sharply since the second half of last year, Wei said "a recent sharp rise in vegetable prices wasn't caused by short supply."
Prices of farm produce on the international markets rose remarkably faster than in China, he said. Rising labor costs and excess liquidity also sent prices higher, he said. China's grain output rose 2.9% on year to 546.41 million tons last year, marking the seventh consecutive year of growth for China's grain output. The ministry said in a statement Saturday that China aims to raise its grain output capacity by 50 million tons by 2015.
China Looks To Overseas Farmland To Add To Supply (Source: CME)
Even as top Chinese officials used the annual legislative National People's Congress concluded to deliver a barrage of assurances on the country's food sufficiency, China is also on a drive to expand its control of overseas agricultural land as added security. China's state-backed Beidahuang Land Cultivation Group will acquire 200,000 hectares of farmland overseas this year in exchange for developing logistics and warehousing on the properties, Chairman Sui Fengfu said. The move is a sign that Chinese agribusinesses are responding to the government's call to move faster on overseas expansion in an area that is increasingly important due to swiftly rising demand and potentially unstable supply. Beidahuang, the corporate vehicle for China's northeastern Heilongjiang provincial government, is one of China's largest rice millers and, through subsidiary Jiusan Oil & Fat Co., one of its largest soy processors.
"We're planning 3 million mu (200,000 hectares) of projects this year," Sui said, adding that these tracts are in countries including Brazil, Argentina, Venezuela, Russia, Australia, Zimbabwe and the Philippines. Sui later told local media the company uses different methods of acquisition, including land leases or outright purchases, depending on the country. Early last year, the company said it closed deals to acquire thousands of hectares in Argentina and Cuba to produce rice, soybeans, wheat and rapeseed in exchange for Chinese investment in logistics and irrigation. Beidahuang's overseas plans, disclosed during the week-and-a-half-long congress, come at a time of receding drought domestic conditions which gave state officials the confidence to emphasize China's self-sufficiency in grains. Nie Zhenbang, director of the State Administration of Grain, said China is expected to reap a record wheat harvest this year.
The end of the drought and China's relatively high wheat reserves also led the chairman of state grain trader Cofco, Ning Gaoning, to state that the company isn't considering importing any more Australian feed wheat this year. In a news conference, Premier Wen Jiabao said inflation remained a threat, and vowed to strengthen agriculture distribution to combat price increases. Agriculture vice minister Wei Chaoan introduced a more sober line when he said Saturday it was too early for China to project whether the country's full-year grain harvest will rise. The private sector didn't completely agree with the more optimistic government officials. Liu Yonghao, chairman of China's largest feed producer New Hope Group, said China's grain output this year will likely fall due to poor weather conditions, as "the problems facing agriculture are still severe." Concerns remain over China's corn stocks, which are at historically low levels.
Nie acknowledged that China's corn reserves are under pressure, though they were still sufficient. China's food prices rose 11% in February, continuing to feed sharp inflationary pressures.
Japanese ports sustain major damage, some out for months
TOKYO/SINGAPORE, March 14 (Reuters) - Japanese ports handling as much as 7 percent of the country's industrial output sustained major damage from last week's earthquake, disrupting global supply chains and causing billions of dollars in losses, industry officials said.
Japan has begun assessing the damage to port infrastructure, vital to receiving aid, commodities and goods for rebuilding areas devastated by the 8.9 magnitude quake and tsunami that are likely to have killed more than 10,000 people.
TIMELINE-Glencore's road to life as a public company
LONDON, March 11 (Reuters) - Commodities trading giant Glencore is working towards an initial public offering (IPO) in London and Hong Kong which could value the Swiss-based firm at $60 billion. Glencore is aiming for an IPO in May, according to source close to the situation.
Below are some likely key dates for Glencore in its possible path to going public.
Japan grapples with nuclear crisis; economy at risk
FUKUSHIMA, Japan, March 14 (Reuters) - Japan scrambled to avert a meltdown at a stricken nuclear plant on Monday after a hydrogen explosion at one reactor and exposure of fuel rods at another, just days after a devastating earthquake and tsunami that killed at least 10,000 people.
Roads and rail, power and ports have been crippled across much of Japan's northeast and estimates of the cost of the multiple disasters have leapt to as much as $170 billion.
PRECIOUS-Gold rises as Japanese quake fuels risk aversion
LONDON, March 14 (Reuters) - Gold rose in Europe on Monday, recovering some of last week's one percent losses, as the impact of an earthquake in Japan added to upward pressure on the metal, driving prices towards recent record highs.
"Japan is another risk element in a plethora of events which have been important in the minds of investors in the past quarter," said Deutsche Bank analyst Daniel Brebner.
FOREX-Dollar rises vs yen as BOJ acts; euro boosted
LONDON, March 14 (Reuters) - The dollar rebounded from near record lows against the yen on Monday after the Bank of Japan announced a series of policy easing measures to shore up the economy in the wake of a devastating earthquake and tsunami.
"The BoJ is now committed to pumping the economy full of as much liquidity as it can. It is providing more monetary stimulus just as other central banks consider tightening, so interest rate differentials should favour a weaker yen," said Kathleen Brooks, research director at FOREX.com.
CBOT soy, corn fall; Japan quake rattles markets
SINGAPORE, March 14 (Reuters) - U.S. soy futures fell by around half a percent and corn also slipped as the nuclear accident at earthquake-damaged reactors unnerved commodity investors, and worries about supply eased. "Last year Japan took 15 million tonnes of corn from the United States. From the fundamentals side it's an issue for U.S. corn. It is bearish in the market in the short term but the question is: for how long the infrastructure is going to remain down?" Brett Cooper, senior manager of markets at FCStone Australia.
Japan concerns send world stocks to 6-wk low
LONDON, March 14 (Reuters) - World stocks fell to a six-week low on Monday, driven by a 7.5 percent fall in Japanese stocks, while oil tumbled as concerns grew about the economic damage from Japan's earthquake and tsunami. "Japan is going to be a focus and it is not going to be a good day... There are not enough positive reasons out there to buy," Matt Brown, trader at Catalyst Markets said.
20110315 0959 Soy Oil & Palm Oil Related News.
ITS CPO export down 17% to 526,407 tonnes for the period of 1~15 Mar 2011
SGS CPO export down 14.7% to 520,463 tonnes for the period of 1~15 Mar 2011.
US soy-product futures end mixed, with soymeal recovering from prior declines after soybeans stabilized. The exhaustion of selling pressure and a lower-than-expected NOPA February crush number that probably caused traders to have ideas that the soybean availability is low amid some firm processor bids underpinned soymeal, says Mike Zuzolo, president Global Commodity Analytics and Consulting. Soyoil futures ended lower, but did trim losses on a late recovery in crude oil. CBOT May soymeal settled 1.6% higher at $355.50/short ton and May soyoil ended down 0.9% at 55.38c/pound. (Source: CME)
US soybean futures end higher after early selling pressure eases as risks posed by uncertainty in global markets and the threat of reduced demand from Japan appeared to be priced into futures, analysts say. Commercial buying near session lows enabled futures to bounce, shrugging off weakness from lower than expected February crush rates, prospects for larger South American crops and increased Brazilian harvest pressure, a CBOT floor broker said. However, advances were limited, as traders remained concerned about further shedding of risk. CBOT May soybeans settled 5 1/2c or 0.4% higher at $13.40 a bushel. (Source: CME)
India February Edible Oil Imports Fall 20% To 538,172 Tons (Source: CME)
India's edible oil imports in February dropped by a fifth from a year earlier because of higher oilseeds production and more crushing locally due to rising overseas demand for oilmeals. Edible oil imports during the fourth month of the marketing year that began Nov. 1, 2010, slipped to 538,172 metric tons from 671,293 tons, the Solvent Extractors' Association of India said Monday. Total imports in the November-February period fell 12% to 2.6 million tons. Vegetable oil imports, which include non-edible oils, declined 21.5% to 549,881 tons in February, the trade body said. The country's total vegetable oil imports will likely fall to 8.7 million tons to 8.8 million tons this year from 9.2 million tons last year, B.V. Mehta, executive director of the association, said. India is the world's second-largest vegetable oil importer after China, and meets more than half its requirements through imports. The country buys palm oil mainly from Indonesia and Malaysia, and soyoil mostly from Brazil and Argentina.
Imports in February were lower because a rise in oilseed crushing to meet export demand for oilmeals also boosted local edible oil output. India's oilmeal exports in February more than doubled to 703,400 metric tons from 329,448 tons. Also, India's total oilseed output this marketing year is likely to rise 11.8% to 25.44 million tons, according to the Central Organisation For Oil Industry and Trade. According to data released by the Solvent Extractors' Association, crude palm oil imports declined 29% to 276,436 tons in February, while refined, bleached and deodorized palm olein imports fell 31.5% to 89,849 tons. Sunflower oil imports decreased 21% to 37,237 tons, but soyoil purchases rose 47% to 129,640 tons, the trade body said. As of March 1, total edible oil stocks at ports were estimated at 630,000 tons. This comprises 380,000 tons of crude palm oil, 100,000 tons each of RBD palm olein and soyoil, and 50,000 tons of sunflower oil.
Indian companies have also entered into contracts to import another 900,000 tons of edible oil, the trade body said. Imports of non-edible oil--used to make soaps, detergents and for other industrial purposes--declined 60% in February to 11,709 tons.
Palm oil falls to 3-1/2 mth low after Japan quake
JAKARTA, March 14 (Reuters) - Malaysian palm oil futures fell to a 3-1/2-month low on Monday, reversing early gains, as investors sought safe-haven assets after last week's massive earthquake and tsunami in Japan, and easing unrest in the Middle East weighed on crude oil. "There has been a lot of downward pressure on commodities," said a palm oil analyst.
India's Feb vegoil imports down on high local supply
NEW DELHI, March 14 (Reuters) - India imported 549,881 tonnes of vegetable oils in February, down by about a fifth from a year ago, trade data released on Monday showed, a fall largely due to higher crushing of domestic oilseeds following a normal monsoon.
India, the world's No. 1 importer of cooking oils, buys mainly palm oil from Indonesia and Malaysia and a small quantity of
soyoil from Argentina and Brazil.
China 2011 soybean imports seen up 9.5 pct, exceed 60MT-report
BEIJING, March 13 (Reuters) - China's soybean imports may exceed 60 million tonnes this year, a jump of at least 9.5 percent from a year ago, and push up global prices, a senior agricultural official said in a report at the weekend.
China's strong demand, along with the willingness of farmers in the United States to grow more corn instead of soybeans due to ethanol fuel demand, will send soybean prices higher, Chen Xiwen, deputy head of the central government's rural work leading panel, told the official Guangzhou Daily.
Argentine soy stays in good shape due rains -gov't
BUENOS AIRES, March 11 (Reuters) - Most of Argentina's 2010/11 soybean crop is developing well due to ample soil moisture after plentiful rains in recent weeks, the Agriculture Ministry said on Friday in a weekly crop progress report.
Argentina is the world's No. 3 exporter of soybeans and the top supplier of soyoil and meal, and heavy rainfall since mid-January has brightened the outlook for the oilseed.
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