China: Leading economic index rises, easing slowdown concern
An indicator of China’s economic outlook rebounded, easing concerns that the government’s campaign to curb inflation and asset bubbles may lead to a sudden slowdown in the world’s second-biggest economy. Premier Wen Jiabao this week vowed to tame inflation he described as a tiger that “once set free will be very difficult to put back into its cage.” The central bank has imposed three increases in interest rates and five adjustments to banks’ reserve requirements since mid-October to rein in liquidity that’s fueling gains in housing and food costs that could threaten social stability. (Financial Daily)
South Korea: Unemployment rate increases to 1-year high
South Korea’s unemployment rate rose to a one-year high in February as jobs in farms, hotels, restaurants, and the retail and wholesale sectors declined. The jobless rate rose to 4% from 3.6% in January, Statistics Korea said, citing seasonally adjusted figures. The median estimate in a Bloomberg News survey of eight economists was for a rate of 3.6%. A further climb may ease pressure on the central bank to extend interest-rate increases if it helps tame the fastest inflation in more than two years by curbing demand. Officials are also weighing the impact of the earthquake in Japan, saying they will help exporters if trade flows are disrupted. (Bloomberg)
Japan: Quake rebuilding may revive laggard northeast
Reconstruction from Japan’s record earthquake and ensuing tsunami may help revive a farming and manufacturing region that was already lagging behind the rest of the economy. Job prospects in Miyagi, where an estimated 10,000 people were killed, were worse than in most of the nation’s 47 prefectures in January. Neighboring Iwate had been hemorrhaging workers to Tokyo, while Fukushima was becoming increasingly dependent on its remaining factories even as Japanese manufacturers move abroad to emerging Asian markets. Prime Minister Naoto Kan’s government aims to compile a relief package as soon as next month, with the biggest opposition party calling for a JPY 5trn (USD62bn) effort, about USD5bn more than South Korea’s 1997 bailout package. (Bloomberg)
EU: Stocks slump the most in four months on nuclear concern
European stocks slumped the most in four months as concern grew that a Japanese nuclear power plant damaged by last week’s earthquake will leak radiation. Carmakers and chemical shares led losses on the Stoxx Europe 600 Index as all 19 industry groups lost at least 1.5%. Utilities E.ON AG and RWE AG sank more than 2%, while renewable-energy companies rallied as Germany said it will halt its seven oldest nuclear reactors as part of a safety review. BHP Billiton Ltd. led a selloff in basic-resource shares as metal prices retreated. The Stoxx 600 tumbled 2.3% to 266.32 at the 4:30p.m close in London, sliding below its 200-day moving average for the first time since August. The VStoxx Index, which measures the cost of protecting against declines in the Euro Stoxx 50 Index, climbed 16% to 31.01, the largest gain since November. (Bloomberg)
EU: February inflation quickens, adding pressure on ECB
European inflation accelerated to the fastest in more than two years in February, increasing pressure on the European Central Bank to raise interest rates. Inflation in the 17-nation euro region quickened to 2.4% from 2.3% in January, the European Union’s statistics office in Luxembourg said, confirming a 1 March estimate. That’s the fastest since Oct 2008 and exceeded the ECB’s 2% limit for a third month. Labor costs rose 1.6% in the fourth quarter from a year ago, after increasing 0.9% in the third quarter, a separate report showed. (Bloomberg)
UK: Jobless claims unexpectedly fall most in eight months
UK unemployment claims unexpectedly fell in February by the most in eight months, adding to signs that the economy may be recovering from the impact of the winter freeze. Jobless benefit claims dropped 10,200 from January to 1.45 million, the lowest since Feb 2009, the Office for National Statistics said. Economists forecast an increase of 1,300, according to the median of 24 predictions in a Bloomberg News survey. Unemployment based on International Labour Organization methods rose by 27,000 in the three months through January to 2.53 million, the highest since 1994. (Bloomberg)
US stocks slide on Japan concern, Yen reaches post-WWII high
US stocks sank, erasing the 2011 gain for the Standard & Poor’s 500 Index, and Treasuries rallied as Japan’s nuclear crisis worsened. The yen rose to a post-World War II high versus the dollar on speculation investors will buy the currency to fund rebuilding projects. Equities extended their retreat as US Nuclear Regulatory Commission Chairman Gregory Jaczko told lawmakers that all the water has drained from the spent-fuel pool at a crippled atomic reactor north of Tokyo and high levels of radiation have been released. The United Nations’ nuclear agency planned to call an emergency meeting to discuss the crisis and said the three reactor cores containing fuel are damaged. (Bloomberg)
U.S: Home construction slumps in February. Home construction dropped 23% to a 479,000 annual rate, while building permits slumped last month to a record low, Commerce Department figures showed. (Source: Bloomberg)
U.S: Producer prices in February rise more than forecast, led by food, oil. The producer-price index climbed 1.6% MoM from the prior month, the most since June 2009. The so-called core measure, which excludes volatile food and energy costs increased 0.2% MoM, matching forecasts. (Source: Bloomberg)
U.S: Mortgage applications fell last week on fewer purchases as a decline in borrowing costs failed to spur home buying. The Mortgage Bankers Association's index of loan applications declined 0.7% in the week ended March 11. The group's purchase index fell 4%, while a measure of refinancing climbed 0.9%.The prospect of further declines in home prices and more foreclosures in coming months may be prompting Americans to refrain from purchases. (Source: Bloomberg)
Japan: Manufacturers were pessimistic in 2Q11 before quake struck. Sentiment among manufacturers with more than JPY 1b (USD 12m) in capital was minus 3.2 points this quarter compared with minus 8 three months ago. The survey was conducted before the nation's biggest earthquake on March 11, and a negative number means pessimists outnumber optimists. (Source: Bloomberg)
Thursday, March 17, 2011
20110317 0918 Malaysia Corporate Related News.
KLCI chart reading : correction range bound downside biased but still above previous low support level.
SEGi named to lead ECCE project
SEG International (SEGi) has been appointed by the Government to lead the development of integrated early child care education (ECCE) under the National Key Economic Area. SEGi told Bursa Malaysia yesterday it would lead the initiative in training and developing early childhood and childcare practitioners. It will also play a lead role in coordinating the establishment of teacher training centres that provide pre- and in-service ECCE courses recognized by Malaysian Qualifications Agency. (StarBiz)
Pharmaniaga gets 10-year govt deal
Pharmaniaga has signed a 10-year concession deal with the Government for the privatization of the medical lab and store. The deal was signed with the Ministry of Health and it covers the right and authority to buy, store, supply and distribute the approved products to the public sector customers. The agreement starts from 1 Dec 2009 until 30 Nov 2019. (BT)
SingPost rules out Pos stake
Singapore Post (SingPost) is not bidding for Khazanah Nasional's 32.2% stake in Pos Malaysia and will also not buy any more shares in courier company GD Express Carrier (GDEX). The postal company, valued at SGD2.2bn (RM5.36bn), on 15 March boosted its stake in GDEX to 27% from 5% as it seeks to expand in the region. The deal raised eyebrows as it was done a day before Khazanah's tender deadline for Pos Malaysia. (BT)
Tomei acquires Goldheart operations
Tomei Consolidated is buying the retail operations of Goldheart in Malaysia for RM5.6m. In a statement to Bursa Malaysia, the company said the deal will help it expand and improve its market share in the retail jewellery industry. TCB and its assignee will enter into a fresh agreement or novation agreement with the landlord of the existing retail outlets to continue Goldheart retail operations in Malaysia. (BT)
Shin Yang resumes services to N-E Asia
Shin Yang Shipping Corp said its international shipping services serving the Northeast Asia route have resumed operations. “It has resumed to all other Japanese ports save for Sendai Port which was affected by the massive 8.9 magnitude earthquake and tsunami which struck Japan last Friday” it said. (BT)
Sime Darby : Bakun dam to generate power in July. The Bakun hydroelectric dam is expected to commercially produce 300MW of electricity in July. (Source: The Edge Financial Daily)
TMC: Ties up with Indon bank. TMC Life Sciences Bhd's unit Tropicana Medical Centre (M) Sdn Bhd (TMC) signed a Memorandum of Understanding (MoU) with Indonesia's Bank Riau Kepri to establish a credit card privilege discount programme. TMC is confident of achieving its 60% growth target this year through various marketing and strategic collaborative efforts with local and regional partners. (Source: The Edge Financial Daily)
SEGi: Hii ups stake to 32.2%, named to lead ECCE project. SEG International Bhd's (SEGi) group MD director Datuk Clement Hii Chii Kok has upped his stake further in the education group to 32.2%. Meanwhile, Rextar Capital Sdn Bhd ceased to be a substantial shareholder after disposing of 10.8m shares. Separately, SEGi has been appointed by the Government to lead the development of integrated early child care education under the National Key Economic Area. (Source: The Edge Financial Daily, The Star)
Aviation: Premium air travel to go down this month. The Japanese disaster will reduce premium air travel in March as it makes up 6% to 7% of the global market, the International Air Transport Association (IATA) said. It added that unrest in the Middle East and the Japanese disaster would likely hit February and March figures. (Source: The Star)
20110317 0900 Renewables Energy Related News.
CHINA RIVALS NARROW GAP ON WIND LEADER VESTAS
COPENHAGEN, March 15 (Reuters) - Danish wind turbine manufacturer Vestas retained its world-leading market position in 2010 despite fierce competition from Chinese rivals rising up the ranks, a report published on Tuesday showed.
"Vestas maintained its leading market position in 2010 based on the strength of its global install activity," MAKE Consulting, a specialist in the wind energy industry, said in an extract from the report.
AFDB MAY LEND ESKOM $270 MLN FOR GREEN POWER PROJECTS
JOHANNESBURG, March 15 (Reuters) - The African Development Bank may lend South African power utility Eskom [ESCJ.UL] $270 million to fund its wind and solar power projects, the bank's climate change and energy director said on Tuesday.
Hela Cheikhrouhou said the bank would mediate an additional $100 million from the World Bank's Clean Technology Fund.
SUNPOWER SAYS JAPAN QUAKE DAMAGE WON'T HURT OUTPUT
NEW YORK, March 15 (Reuters) - SunPower Corp does not expect any change in its 2011 output of solar modules because of the massive earthquake in Japan, the company said on Tuesday.
It said its Japanese suppliers have seen some operations disrupted because of the disaster but have not sustained major damage to facilities.
WIND POWER SECTOR BOOSTS OUTLOOK, CLOUDED BY NUCLEAR
BRUSSELS, March 15 (Reuters) - Global wind power capacity will more than double by 2015, but the current debate over nuclear safety clouds predictions of the future energy mix, the Global Wind Energy Council said on Tuesday.
"By 2015, the global installed wind power capacity will more than double to 450 gigawatts from 194.4 gigawatts at the end of 2010," GWEC said in its five-year forecast.
DRC SEES INGA 3 GENERATING POWER BY 2017/18
CAPE TOWN, March 15 (Reuters) - The Democratic Republic of Congo expects its Inga 3 hydro project to start generating power by 2017/18 to supply the DRC and neighbouring states from the 4,300-5,000 MW scheme, a government official said on Tuesday.
A pre-feasibility study on the $8-10 billion Inga 3 plant, as well as a separate 40,000 MW Grand Inga project, is expected by September as the mineral-rich DRC moved to kick-start a project stalled last year.
SAFRICA, DRC IN TALKS ON REVIVING HYDRO PROJECT
CAPE TOWN, March 15 (Reuters) - South Africa is talking to the Democratic Republic of Congo to revive a stalled $8-$10 billion 5,000 megawatt hydro power project on the Congo River, South African energy minister Dipuo Peters said on Tuesday.
Last year, the DRC rejected a proposal by the Western Power Corridor (Westcor), a joint venture between five southern African governments and power utilities that would have led to exports of up to 3,000 MW to South Africa and another 1,000 MW to neighbouring countries by 2015.
PHOENIX SOLAR SHIES AWAY FROM GIVING 2011 OUTLOOK
FRANKFURT, March 15 (Reuters) - German solar wholesaler Phoenix Solar shied away from providing an outlook for the current business year as regulatory changes in key markets increased uncertainty about the sector's future.
Germany, the solar industry's No.1 market, is set to cut solar power subsidies up to 15 percent from this summer, six months earlier than originally planned, a move hurting the company, which makes most of its sales there.
INDIA'S SUZLON SAYS FOUNDERS SELL 2.25 PCT OF SHARES
MUMBAI, March 14 (Reuters) - India's Suzlon Energy Ltd , the world's third-biggest wind turbine maker, said on Monday its founders sold 2.25 percent of the company's shares, and would use the proceeds to extend financial support to the company.
Suzlon, which has been the subject of occasional reports of a possible sale, also said proceeds from the share sale will be used for strategic initiatives.
CHINA'S XINJIANG GOLDWIND TARGETS AFRICAN GROWTH
CAPE TOWN, March 14 (Reuters) - China's Xinjiang Goldwind Science and Technology , the world's No. 5 maker of wind turbines, opened an office in Cape Town on Monday with the aim of supplying equipment and project finance in Africa.
The company, which since the turn of the millenium achieved an average growth of more than 100 percent a year, listed on the Hong Kong bourse late last year and will use the roughly $900 million raised to help fund debt and equity projects in Africa, the Americas and Australia.
EDP RENEWABLES SEES WIND TURBINE PRICES DOWN 9 PCT
LONDON, March 14 (Reuters) - EDP Renewables, the wind energy unit of EDP Energias de Portugal, expects costs for wind turbines this year and next to fall 9 percent from peak prices, the company's finance chief told Reuters.
"For EDPR, the total cost of building 1 megawatt this year and the next should be around 1.2 million euros ($1.67 million) - 1.3 million euros per MW," Chief Financial Officer Rui Teixeira said in an interview on Monday.
A-POWER TO DEVELOP $30.5 MLN POWER PLANT; SHRS UP
March 14 (Reuters) - A-Power Energy Generation Systems Ltd said it signed a contract for about $30.5 million to develop a biomass power plant in Shandong province in China, sending the Chinese green power firm's shares up 11 percent in pre-market trade.
The power plant, which will consist of two 15 megawatt power generation units, will be built for Xin County Guangchao Biomass Power Generation LCC.
BAY STREET-WHY GEOTHERMAL REMAINS A BURIED TREASURE
VANCOUVER, March 13 (Reuters) - As renewable energies go, geothermal energy has a lot on its side.
The naturally occurring heat trapped deep in the earth can be pumped up to the surface to produce electricity that's clean, is always available without the fickleness of wind and solar, and, according to some studies, is even cheaper than coal-fired power.
OERLIKON SOLAR COULD EXPAND INTO CIGS MARKET
LOS ANGELES, March 11 (Reuters) - Solar equipment maker Oerlikon Solar is keeping a close eye on the development of so-called CIGS technology and could expand into that market down the road, a senior executive said on Friday.
The unit of Swiss conglomerate Oerlikon Corp AG sells manufacturing equipment to companies that make "thin film silicon" solar panels, but has not ruled out expanding into rival technologies such as copper indium gallium selenide (CIGS) cells.
KAZAKH STATE NUCLEAR FIRM TO BUILD SOLAR PANELS
ASTANA, March 11 (Reuters) - Kazakhstan's state nuclear company, Kazatomprom, plans to expand into solar panel production by investing around $230 million in a new factory in Astana, the head of the company said on Friday.
Construction of the plant would begin in March in the capital and take at least two years, Kazatomprom President Vladimir Shkolnik said during a meeting in the Senate.
CHINA POWER OUTPUT GROWTH REBOUNDS IN JAN, FEB
BEIJING, March 11 (Reuters) - China's electricity output increased 15.4 percent from a year earlier in February and gained 11.7 percent in the first two months of this year, government data showed on Friday.
The National Bureau of Statistics did not provide power generation data for January, but Reuters calculations based on official figures showed output in January grew about 8.2 percent on year.
SEMPRA UNIT TO BUILD SOLAR PLANT IN CALIFORNIA
March 10 (Reuters) - Regulated utility San Diego Gas & Electric (SDG&E), a unit of Sempra Energy \, signed a contract with renewable energy company Tenaska Solar Ventures for a 150-megawatt solar power plant in southern California.
Under the 25-year power-purchase deal, Tenaska Solar -- a unit of natural gas marketer Tenaska -- will develop and operate the ground-mounted plant.
U.S. SOLAR GREW SHARPLY IN 2010, STILL LAGS EUROPE
LOS ANGELES, March 10 (Reuters) - The U.S. solar power sector grew 67 percent in 2010 but still lagged European markets by a wide margin in installing solar systems, the industry's trade group said on Thursday.
The U.S. market for solar energy reached $6 billion in 2010, up from $3.6 billion the previous year, according to the Solar Energy Industries Association.
SUNPOWER TO SUPPLY SOLAR PANELS TO TOSHIBA
March 9 (Reuters) - U.S. solar power company SunPower Corp, which makes solar panels that turn sunlight into electricity and also builds solar power systems, agreed to supply 48 megawatt of solar panels to Japan's Toshiba Corp during 2011.
Toshiba will use the panels to support the company's residential solar offering in Japan.
COPENHAGEN, March 15 (Reuters) - Danish wind turbine manufacturer Vestas retained its world-leading market position in 2010 despite fierce competition from Chinese rivals rising up the ranks, a report published on Tuesday showed.
"Vestas maintained its leading market position in 2010 based on the strength of its global install activity," MAKE Consulting, a specialist in the wind energy industry, said in an extract from the report.
AFDB MAY LEND ESKOM $270 MLN FOR GREEN POWER PROJECTS
JOHANNESBURG, March 15 (Reuters) - The African Development Bank may lend South African power utility Eskom [ESCJ.UL] $270 million to fund its wind and solar power projects, the bank's climate change and energy director said on Tuesday.
Hela Cheikhrouhou said the bank would mediate an additional $100 million from the World Bank's Clean Technology Fund.
SUNPOWER SAYS JAPAN QUAKE DAMAGE WON'T HURT OUTPUT
NEW YORK, March 15 (Reuters) - SunPower Corp does not expect any change in its 2011 output of solar modules because of the massive earthquake in Japan, the company said on Tuesday.
It said its Japanese suppliers have seen some operations disrupted because of the disaster but have not sustained major damage to facilities.
WIND POWER SECTOR BOOSTS OUTLOOK, CLOUDED BY NUCLEAR
BRUSSELS, March 15 (Reuters) - Global wind power capacity will more than double by 2015, but the current debate over nuclear safety clouds predictions of the future energy mix, the Global Wind Energy Council said on Tuesday.
"By 2015, the global installed wind power capacity will more than double to 450 gigawatts from 194.4 gigawatts at the end of 2010," GWEC said in its five-year forecast.
DRC SEES INGA 3 GENERATING POWER BY 2017/18
CAPE TOWN, March 15 (Reuters) - The Democratic Republic of Congo expects its Inga 3 hydro project to start generating power by 2017/18 to supply the DRC and neighbouring states from the 4,300-5,000 MW scheme, a government official said on Tuesday.
A pre-feasibility study on the $8-10 billion Inga 3 plant, as well as a separate 40,000 MW Grand Inga project, is expected by September as the mineral-rich DRC moved to kick-start a project stalled last year.
SAFRICA, DRC IN TALKS ON REVIVING HYDRO PROJECT
CAPE TOWN, March 15 (Reuters) - South Africa is talking to the Democratic Republic of Congo to revive a stalled $8-$10 billion 5,000 megawatt hydro power project on the Congo River, South African energy minister Dipuo Peters said on Tuesday.
Last year, the DRC rejected a proposal by the Western Power Corridor (Westcor), a joint venture between five southern African governments and power utilities that would have led to exports of up to 3,000 MW to South Africa and another 1,000 MW to neighbouring countries by 2015.
PHOENIX SOLAR SHIES AWAY FROM GIVING 2011 OUTLOOK
FRANKFURT, March 15 (Reuters) - German solar wholesaler Phoenix Solar shied away from providing an outlook for the current business year as regulatory changes in key markets increased uncertainty about the sector's future.
Germany, the solar industry's No.1 market, is set to cut solar power subsidies up to 15 percent from this summer, six months earlier than originally planned, a move hurting the company, which makes most of its sales there.
INDIA'S SUZLON SAYS FOUNDERS SELL 2.25 PCT OF SHARES
MUMBAI, March 14 (Reuters) - India's Suzlon Energy Ltd , the world's third-biggest wind turbine maker, said on Monday its founders sold 2.25 percent of the company's shares, and would use the proceeds to extend financial support to the company.
Suzlon, which has been the subject of occasional reports of a possible sale, also said proceeds from the share sale will be used for strategic initiatives.
CHINA'S XINJIANG GOLDWIND TARGETS AFRICAN GROWTH
CAPE TOWN, March 14 (Reuters) - China's Xinjiang Goldwind Science and Technology , the world's No. 5 maker of wind turbines, opened an office in Cape Town on Monday with the aim of supplying equipment and project finance in Africa.
The company, which since the turn of the millenium achieved an average growth of more than 100 percent a year, listed on the Hong Kong bourse late last year and will use the roughly $900 million raised to help fund debt and equity projects in Africa, the Americas and Australia.
EDP RENEWABLES SEES WIND TURBINE PRICES DOWN 9 PCT
LONDON, March 14 (Reuters) - EDP Renewables, the wind energy unit of EDP Energias de Portugal, expects costs for wind turbines this year and next to fall 9 percent from peak prices, the company's finance chief told Reuters.
"For EDPR, the total cost of building 1 megawatt this year and the next should be around 1.2 million euros ($1.67 million) - 1.3 million euros per MW," Chief Financial Officer Rui Teixeira said in an interview on Monday.
A-POWER TO DEVELOP $30.5 MLN POWER PLANT; SHRS UP
March 14 (Reuters) - A-Power Energy Generation Systems Ltd said it signed a contract for about $30.5 million to develop a biomass power plant in Shandong province in China, sending the Chinese green power firm's shares up 11 percent in pre-market trade.
The power plant, which will consist of two 15 megawatt power generation units, will be built for Xin County Guangchao Biomass Power Generation LCC.
BAY STREET-WHY GEOTHERMAL REMAINS A BURIED TREASURE
VANCOUVER, March 13 (Reuters) - As renewable energies go, geothermal energy has a lot on its side.
The naturally occurring heat trapped deep in the earth can be pumped up to the surface to produce electricity that's clean, is always available without the fickleness of wind and solar, and, according to some studies, is even cheaper than coal-fired power.
OERLIKON SOLAR COULD EXPAND INTO CIGS MARKET
LOS ANGELES, March 11 (Reuters) - Solar equipment maker Oerlikon Solar is keeping a close eye on the development of so-called CIGS technology and could expand into that market down the road, a senior executive said on Friday.
The unit of Swiss conglomerate Oerlikon Corp AG sells manufacturing equipment to companies that make "thin film silicon" solar panels, but has not ruled out expanding into rival technologies such as copper indium gallium selenide (CIGS) cells.
KAZAKH STATE NUCLEAR FIRM TO BUILD SOLAR PANELS
ASTANA, March 11 (Reuters) - Kazakhstan's state nuclear company, Kazatomprom, plans to expand into solar panel production by investing around $230 million in a new factory in Astana, the head of the company said on Friday.
Construction of the plant would begin in March in the capital and take at least two years, Kazatomprom President Vladimir Shkolnik said during a meeting in the Senate.
CHINA POWER OUTPUT GROWTH REBOUNDS IN JAN, FEB
BEIJING, March 11 (Reuters) - China's electricity output increased 15.4 percent from a year earlier in February and gained 11.7 percent in the first two months of this year, government data showed on Friday.
The National Bureau of Statistics did not provide power generation data for January, but Reuters calculations based on official figures showed output in January grew about 8.2 percent on year.
SEMPRA UNIT TO BUILD SOLAR PLANT IN CALIFORNIA
March 10 (Reuters) - Regulated utility San Diego Gas & Electric (SDG&E), a unit of Sempra Energy \, signed a contract with renewable energy company Tenaska Solar Ventures for a 150-megawatt solar power plant in southern California.
Under the 25-year power-purchase deal, Tenaska Solar -- a unit of natural gas marketer Tenaska -- will develop and operate the ground-mounted plant.
U.S. SOLAR GREW SHARPLY IN 2010, STILL LAGS EUROPE
LOS ANGELES, March 10 (Reuters) - The U.S. solar power sector grew 67 percent in 2010 but still lagged European markets by a wide margin in installing solar systems, the industry's trade group said on Thursday.
The U.S. market for solar energy reached $6 billion in 2010, up from $3.6 billion the previous year, according to the Solar Energy Industries Association.
SUNPOWER TO SUPPLY SOLAR PANELS TO TOSHIBA
March 9 (Reuters) - U.S. solar power company SunPower Corp, which makes solar panels that turn sunlight into electricity and also builds solar power systems, agreed to supply 48 megawatt of solar panels to Japan's Toshiba Corp during 2011.
Toshiba will use the panels to support the company's residential solar offering in Japan.
20110317 0859 Biofuels Related News.
COLUMN-ETHANOL PRODUCERS SHOULD BEWARE OF RISING STOCKS: MAGUIRE
--Gavin Maguire is a Reuters market analyst. The views expressed are his own. To get his real-time views on the market, please join the Global Ags Forum. --
CHICAGO, March 10 (Reuters) - The recent slump in corn prices has helped U.S. ethanol producer margins rebound from their recent plunge into negative territory, and has prompted ethanol manufacturers to snap their recent five-week streak of declining production
However, sluggish off-take levels have led to a rise ethanol inventories to their highest level in eight months, and reveal a lingering threat to ethanol market fundamentals that may limit a further recovery in producer margins over the near term.
EU BIOETHANOL GROUP WEIGHS U.S. SUBSIDY LAWSUIT
BRUSSELS, March 15 (Reuters) - European bioethanol producers will decide by the end of March whether to file a legal complaint with the European Commission over U.S. subsidies, the EU's main bioethanol lobby said.
Producers such as Germany's CropEnergies and Spain's Abengoa are gathering data on tax credits granted by the U.S. government to U.S. firms that blend ethanol with gasoline. They say the tax break squeezes the margins of competing European producers when the resulting blend is exported to the EU.
SUN BIOFUELS EYES 2 MLN LITRES OF OIL IN MOZAMBIQUE
MAPUTO, 14 March (Reuters) - UK-based Sun Biofuels plans to produce 2 million liters of fuel from its jatropha plantations in Mozambique's central Manica province by 2018, an official said on Monday.
Business Development Director Harry Stourton said the company will increase its cultivation area of jatropha plants to 10,000 hectares from the 2,500 hectares it has so far.
GREEN FUELS TO GET BOOST FROM EU TAX REVAMP -DRAFT
BRUSSELS, March 14 (Reuters) - The greenest fuels would become cheaper under an planned overhaul of European fuel taxes that would also narrow the price gap between petrol and diesel.
The European Union's executive wants to overhaul Europe's 240 billion euro ($334.4 billion) annual taxation of energy, which varies widely between countries and often creates paradoxical incentives that encourage the biggest polluters.
BP EXPANDS IN BRAZILIAN BIOFUELS WITH $680 MLN BUY
SAO PAULO/LONDON, March 11 (Reuters) - Oil major BP has agreed to buy a Brazilian sugar and ethanol group for $680 million, expanding its presence in the country's biofuels industry in what it said was the largest deal to date for its alternative energy unit.
The deal accents big oil's diversification into Brazil's ethanol sector as economies rethink their dependence on fossil fuels, especially following the political unrest in the Middle East that has driven oil prices to the highest since 2008.
GASOLINE WITH HIGHER ETHANOL BLEND AVAILABLE IN US SOON
WASHINGTON, March 10 (Reuters) - Gasoline containing up to 15 percent ethanol should be available for the coming summer driving season as the government moves to finalize labeling and other issues for the new motor fuel.
The Environmental Protection Agency approved in January raising the amount of ethanol in gasoline to 15 percent for newer cars and trucks from 10 percent, a ruling welcomed by the industry and by farmers who supply the corn to make the fuel.
U.S. ETHANOL OUTPUT BOUNCES BACK FROM 5-WEEK SLIDE
KANSAS CITY, March 9 (Reuters) - U.S. ethanol production snapped a five-week decline, rising slightly in the past week as profit margins improved, ethanol experts said.
Production rose to 883,000 barrels per day (bpd) for the week ended March 4, up from 882,000 bpd the previous week, according to the U.S. Energy Information Administration (EIA).
--Gavin Maguire is a Reuters market analyst. The views expressed are his own. To get his real-time views on the market, please join the Global Ags Forum. --
CHICAGO, March 10 (Reuters) - The recent slump in corn prices has helped U.S. ethanol producer margins rebound from their recent plunge into negative territory, and has prompted ethanol manufacturers to snap their recent five-week streak of declining production
However, sluggish off-take levels have led to a rise ethanol inventories to their highest level in eight months, and reveal a lingering threat to ethanol market fundamentals that may limit a further recovery in producer margins over the near term.
EU BIOETHANOL GROUP WEIGHS U.S. SUBSIDY LAWSUIT
BRUSSELS, March 15 (Reuters) - European bioethanol producers will decide by the end of March whether to file a legal complaint with the European Commission over U.S. subsidies, the EU's main bioethanol lobby said.
Producers such as Germany's CropEnergies and Spain's Abengoa are gathering data on tax credits granted by the U.S. government to U.S. firms that blend ethanol with gasoline. They say the tax break squeezes the margins of competing European producers when the resulting blend is exported to the EU.
SUN BIOFUELS EYES 2 MLN LITRES OF OIL IN MOZAMBIQUE
MAPUTO, 14 March (Reuters) - UK-based Sun Biofuels plans to produce 2 million liters of fuel from its jatropha plantations in Mozambique's central Manica province by 2018, an official said on Monday.
Business Development Director Harry Stourton said the company will increase its cultivation area of jatropha plants to 10,000 hectares from the 2,500 hectares it has so far.
GREEN FUELS TO GET BOOST FROM EU TAX REVAMP -DRAFT
BRUSSELS, March 14 (Reuters) - The greenest fuels would become cheaper under an planned overhaul of European fuel taxes that would also narrow the price gap between petrol and diesel.
The European Union's executive wants to overhaul Europe's 240 billion euro ($334.4 billion) annual taxation of energy, which varies widely between countries and often creates paradoxical incentives that encourage the biggest polluters.
BP EXPANDS IN BRAZILIAN BIOFUELS WITH $680 MLN BUY
SAO PAULO/LONDON, March 11 (Reuters) - Oil major BP has agreed to buy a Brazilian sugar and ethanol group for $680 million, expanding its presence in the country's biofuels industry in what it said was the largest deal to date for its alternative energy unit.
The deal accents big oil's diversification into Brazil's ethanol sector as economies rethink their dependence on fossil fuels, especially following the political unrest in the Middle East that has driven oil prices to the highest since 2008.
GASOLINE WITH HIGHER ETHANOL BLEND AVAILABLE IN US SOON
WASHINGTON, March 10 (Reuters) - Gasoline containing up to 15 percent ethanol should be available for the coming summer driving season as the government moves to finalize labeling and other issues for the new motor fuel.
The Environmental Protection Agency approved in January raising the amount of ethanol in gasoline to 15 percent for newer cars and trucks from 10 percent, a ruling welcomed by the industry and by farmers who supply the corn to make the fuel.
U.S. ETHANOL OUTPUT BOUNCES BACK FROM 5-WEEK SLIDE
KANSAS CITY, March 9 (Reuters) - U.S. ethanol production snapped a five-week decline, rising slightly in the past week as profit margins improved, ethanol experts said.
Production rose to 883,000 barrels per day (bpd) for the week ended March 4, up from 882,000 bpd the previous week, according to the U.S. Energy Information Administration (EIA).
20110317 0853 Global Market Related News.
Dow Jones chart reading : downside biased with possible pullback correction.
FTSE chart reading : downside biased with possible pullback correction.
DAX chart reading : downside biased with possible pullback correction.
Hang Seng chart reading : downside biased with possible pullback correction.
Brent crude falls below $110 as equities drop, Japan crisis weighs
SINGAPORE, March 17 - Brent crude fell by as much as 1 percent on Thursday to below $110 as Japan's worsening nuclear crisis buffeted stock markets, raising questions about the impact of the earthquake on growth and energy demand.
"There is so much uncertainty in Japan and its ability to drive economic recovery that it's something that is casting a shadow on the outlook for global growth," said Ben Westmore, a commodities analyst at National Australia Bank.
Corn, wheat rise 1.5 pct after selloff, soy extends gains
SINGAPORE, March 17 (Reuters) - U.S. corn and wheat futures rose around 1.5 percent on Thursday on bargain hunting after a selloff this week triggered by Japan's devastating earthquake, which raised doubts over the nation's grain imports.
"The grain markets are volatile because Japan is a major corn importer and we are not sure about the nuclear situation," said Ker Chung Yang, investment analyst at Phillip Futures in Singapore.
Gold tracks equities lower, ETF holdings inch up
SINGAPORE, March 17 (Reuters) - Gold dropped to stay below $1,400 on Thursday as mounting fears about a nuclear catastrophe in Japan prompted investors to sell the bullion to cover losses in other markets, but a rise in ETF holdings suggested weaker prices had spurred buying interest.
"There are mixed views with respect to the catastrophe in Japan. Few sections of investors believe that demand may see surge in the coming sessions which could take gold to fresh record highs," said Pradeep Unni, senior analyst at Richcomm Global Services in Dubai.
Yen surges, stocks fall as Japan crisis deepens
SINGAPORE, March 17 (Reuters) - The yen surged to a record high against the dollar and shares in Japan and elsewhere in Asia fell on Thursday after U.S. officials said the risk of a catastrophic radiation leak from an earthquake-stricken Japanese nuclear plant was rising.
"Fear is the only factor driving the market today and if you look at news about temperatures rising, things exploding, you're not going to trade calmly, right?" said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments.
Oil : Oil rises 2 pct on Mideast fears, eyes Japan
NEW YORK, March 16 (Reuters) - Oil prices rose 2 percent from near three-week lows on Wednesday as a crackdown on protesters in Bahrain reignited worries unrest in the Middle East could further hit oil supplies.
"The increasing unrest in Bahrain -- and the interest taken by Saudi Arabia in trying to resolve it -- must not be overlooked as a risk driver," said J.P. Morgan analyst Lawrence Eagles in New York.
COMMODITIES: Oil, metals rise, but Japan nuclear woes persist
CHICAGO, March 16 (Reuters) - An early rebound in commodities markets melted away on Wednesday as concern about widening unrest in the Middle East that spurred gains in oil failed to offset worries about Japan's nuclear crisis.
"We remain firmly bullish on the global outlook for the second half, expecting an easing of Chinese macro headwinds in H2 and now anticipate a commodity intensive stimulus and rebuild in Japan," Liberum Capital analyst Dominic O'Kane said in a note.
GLOBAL MARKETS: Yen surges, stocks fall as Japan crisis deepens
SINGAPORE, March 17 (Reuters) - The yen surged to a record high against the dollar, Japanese shares slid and stocks elsewhere in Asia fell on Thursday after U.S. officials said the risk of a catastrophic radiation leak from an earthquake-crippled Japanese nuclear plant was rising.
"Fear is the only factor driving the market today and if you look at news about temperatures rising, things exploding, you're not going to trade calmly, right?" said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments.
Home Construction in U.S. Slumps, Producer Prices Rise in Recovery Hurdle (Bloomberg)
Housing starts in the U.S. plunged to the lowest level in almost a year in February and wholesale prices rose more than forecast, hurdles for a recovery that the Federal Reserve said yesterday is on a “firmer footing.”
European February Inflation Quickens, Adding Pressure on ECB to Raise Rate (Bloomberg)
European inflation accelerated to the fastest in more than two years in February, increasing pressure on the European Central Bank to raise interest rates.
OECD Cuts U.K. Growth Forecast, Urges BOE Restraint on Rates (Bloomberg)
The Organization for Economic Cooperation and Development cut its forecast for U.K. economic growth in 2011 and said the Bank of England should refrain from increasing interest rates until the second half of the year.
Fed Signals Further Stimulus Unlikely as Economic Recovery Gains Strength (Bloomberg)
Federal Reserve officials signaled they’re unlikely to expand a $600-billion bond purchase plan as the recovery picks up steam and the threat that inflation will fall too low begins to wane.
The economy is on a “firmer footing, and overall conditions in the labor market appear to be improving gradually,” the Federal Open Market Committee said in a statement yesterday after a one-day meeting in Washington. While commodity prices have “risen significantly,” inflation expectations have “remained stable.”
U.K. Jobless Claims Unexpectedly Drop to Two-Year Low on Rebound From Snow (Bloomberg)
U.K. unemployment claims unexpectedly fell in February by the most in eight months, adding to signs that the economy may be recovering from the impact of the winter freeze.
U.S. Producer Prices Rise More than Forecast, Led by Food, Oil (Bloomberg)
Wholesale costs in the U.S. rose more than forecast in February, led by food prices at a more than three-decade high and a surge in energy.
SINGAPORE, March 17 - Brent crude fell by as much as 1 percent on Thursday to below $110 as Japan's worsening nuclear crisis buffeted stock markets, raising questions about the impact of the earthquake on growth and energy demand.
"There is so much uncertainty in Japan and its ability to drive economic recovery that it's something that is casting a shadow on the outlook for global growth," said Ben Westmore, a commodities analyst at National Australia Bank.
Corn, wheat rise 1.5 pct after selloff, soy extends gains
SINGAPORE, March 17 (Reuters) - U.S. corn and wheat futures rose around 1.5 percent on Thursday on bargain hunting after a selloff this week triggered by Japan's devastating earthquake, which raised doubts over the nation's grain imports.
"The grain markets are volatile because Japan is a major corn importer and we are not sure about the nuclear situation," said Ker Chung Yang, investment analyst at Phillip Futures in Singapore.
Gold tracks equities lower, ETF holdings inch up
SINGAPORE, March 17 (Reuters) - Gold dropped to stay below $1,400 on Thursday as mounting fears about a nuclear catastrophe in Japan prompted investors to sell the bullion to cover losses in other markets, but a rise in ETF holdings suggested weaker prices had spurred buying interest.
"There are mixed views with respect to the catastrophe in Japan. Few sections of investors believe that demand may see surge in the coming sessions which could take gold to fresh record highs," said Pradeep Unni, senior analyst at Richcomm Global Services in Dubai.
Yen surges, stocks fall as Japan crisis deepens
SINGAPORE, March 17 (Reuters) - The yen surged to a record high against the dollar and shares in Japan and elsewhere in Asia fell on Thursday after U.S. officials said the risk of a catastrophic radiation leak from an earthquake-stricken Japanese nuclear plant was rising.
"Fear is the only factor driving the market today and if you look at news about temperatures rising, things exploding, you're not going to trade calmly, right?" said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments.
Oil : Oil rises 2 pct on Mideast fears, eyes Japan
NEW YORK, March 16 (Reuters) - Oil prices rose 2 percent from near three-week lows on Wednesday as a crackdown on protesters in Bahrain reignited worries unrest in the Middle East could further hit oil supplies.
"The increasing unrest in Bahrain -- and the interest taken by Saudi Arabia in trying to resolve it -- must not be overlooked as a risk driver," said J.P. Morgan analyst Lawrence Eagles in New York.
COMMODITIES: Oil, metals rise, but Japan nuclear woes persist
CHICAGO, March 16 (Reuters) - An early rebound in commodities markets melted away on Wednesday as concern about widening unrest in the Middle East that spurred gains in oil failed to offset worries about Japan's nuclear crisis.
"We remain firmly bullish on the global outlook for the second half, expecting an easing of Chinese macro headwinds in H2 and now anticipate a commodity intensive stimulus and rebuild in Japan," Liberum Capital analyst Dominic O'Kane said in a note.
GLOBAL MARKETS: Yen surges, stocks fall as Japan crisis deepens
SINGAPORE, March 17 (Reuters) - The yen surged to a record high against the dollar, Japanese shares slid and stocks elsewhere in Asia fell on Thursday after U.S. officials said the risk of a catastrophic radiation leak from an earthquake-crippled Japanese nuclear plant was rising.
"Fear is the only factor driving the market today and if you look at news about temperatures rising, things exploding, you're not going to trade calmly, right?" said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments.
Home Construction in U.S. Slumps, Producer Prices Rise in Recovery Hurdle (Bloomberg)
Housing starts in the U.S. plunged to the lowest level in almost a year in February and wholesale prices rose more than forecast, hurdles for a recovery that the Federal Reserve said yesterday is on a “firmer footing.”
European February Inflation Quickens, Adding Pressure on ECB to Raise Rate (Bloomberg)
European inflation accelerated to the fastest in more than two years in February, increasing pressure on the European Central Bank to raise interest rates.
OECD Cuts U.K. Growth Forecast, Urges BOE Restraint on Rates (Bloomberg)
The Organization for Economic Cooperation and Development cut its forecast for U.K. economic growth in 2011 and said the Bank of England should refrain from increasing interest rates until the second half of the year.
Fed Signals Further Stimulus Unlikely as Economic Recovery Gains Strength (Bloomberg)
Federal Reserve officials signaled they’re unlikely to expand a $600-billion bond purchase plan as the recovery picks up steam and the threat that inflation will fall too low begins to wane.
The economy is on a “firmer footing, and overall conditions in the labor market appear to be improving gradually,” the Federal Open Market Committee said in a statement yesterday after a one-day meeting in Washington. While commodity prices have “risen significantly,” inflation expectations have “remained stable.”
U.K. Jobless Claims Unexpectedly Drop to Two-Year Low on Rebound From Snow (Bloomberg)
U.K. unemployment claims unexpectedly fell in February by the most in eight months, adding to signs that the economy may be recovering from the impact of the winter freeze.
U.S. Producer Prices Rise More than Forecast, Led by Food, Oil (Bloomberg)
Wholesale costs in the U.S. rose more than forecast in February, led by food prices at a more than three-decade high and a surge in energy.
US corn futures close sharply lower, extending recent losses as investors continue to worry about a global economic slowdown. Japan's crisis continued to hang over the grains as falling equities sent traders to the sidelines. Commodity funds exited long positions on the perception prices peaked at a 32-month high March 4, says John Kleist, analyst at ebottrading.com. Funds sold an estimated 28,000 contracts, a large amount. "They're deserting old crop because it's not working anymore," Kleist says. CBOT May corn falls 19 1/2c at $6.16 1/2 a bushel. (Source: CME)
US wheat futures settle mostly lower on global growth concerns. Japan's crisis is expected to reduce the country's grain purchases near-term. CBOT May wheat closes down 5 3/4c at $6.62/bushel while KCBT May edges up 1 1/4c to $7.78 1/4 and MGE May slips 1 1/2c to $8.06. (Source: CME)
New York manufacturing, employment rise
NEW YORK, March 15 (Reuters) - Manufacturing in New York state rose to a nine-month high in March, but a sharp slowing in new orders suggested that economic growth could be less robust in future months.
Meanwhile, the U.S. Federal Reserve maintained its ultra-loose monetary policy on Tuesday, saying the economy was gaining traction while flagging potential inflation risks from costlier energy and food.
PRECIOUS-Gold firms as markets steady; "all eyes" on Japan
LONDON, March 16 (Reuters) - Gold firmed in Europe on Wednesday as investors took advantage of the previous day's 2 percent price drop to buy the metal, and as the extreme risk aversion that prompted a flight to liquidity on Tuesday eased.
"Gold may recover and stabilise, but there could be more downward pressure," said Quantitative Commodity Research consultant Peter Fertig. "It all depends on how tactical people are in managing the situation at the Fukushima nuclear power plant.
FOREX-Yen hits 4-mth high vs dollar as intervention looms
NEW YORK, March 16 (Reuters) - The yen neared a record peak against the dollar on Wednesday, but analysts say expectations Japan will intervene to weaken the currency if it gets much stronger may provide a good opportunity to buy the greenback.
"The daily momentum is a bit oversold but not as much as in October," he said. "And the weekly.
U.S. corn drops to 2-mth low, wheat up 2 pct on crop worry
SINGAPORE, March 16 - U.S wheat futures rallied by 2 percent paring the previous session's 7.35 percent slump and soy also rallied as commodity and equity markets regained composure after a series of steep losses since Friday's earthquake in Japan. "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.
Japan rebounds after sell-off, lifts others
LONDON, March 16 (Reuters) - Japanese stocks rebounded from a major pummelling that some investors thought overdone, lifting equities elsewhere and allowing the yen to dip from a near record high against the dollar. "Uncertainty in the Fukushima nuclear power plant is clearly making market participants very nervous," said Kazuhiro Takahashi, general manager at Daiwa Securities Capital Markets in Tokyo.
'Get used to higher food costs'-experts
CHICAGO, March 15 (Reuters) - Higher food prices are here to stay.
A rising tide of global forces is supporting the surge in prices for important food staples like meat, dairy and grains, commodity experts said at the Reuters Global Food and Agriculture Summit on Tuesday.
"This is a pretty sustainable increase ... A number of factors have been building over time in terms of the commodity increase: world economic growth, rising crude oil prices, increased Chinese import demand all have conspired," said Bill Lapp, president of Advanced Economic Solutions, a commodity analytical firm based in Omaha, Nebraska.
US wheat futures settle mostly lower on global growth concerns. Japan's crisis is expected to reduce the country's grain purchases near-term. CBOT May wheat closes down 5 3/4c at $6.62/bushel while KCBT May edges up 1 1/4c to $7.78 1/4 and MGE May slips 1 1/2c to $8.06. (Source: CME)
New York manufacturing, employment rise
NEW YORK, March 15 (Reuters) - Manufacturing in New York state rose to a nine-month high in March, but a sharp slowing in new orders suggested that economic growth could be less robust in future months.
Meanwhile, the U.S. Federal Reserve maintained its ultra-loose monetary policy on Tuesday, saying the economy was gaining traction while flagging potential inflation risks from costlier energy and food.
PRECIOUS-Gold firms as markets steady; "all eyes" on Japan
LONDON, March 16 (Reuters) - Gold firmed in Europe on Wednesday as investors took advantage of the previous day's 2 percent price drop to buy the metal, and as the extreme risk aversion that prompted a flight to liquidity on Tuesday eased.
"Gold may recover and stabilise, but there could be more downward pressure," said Quantitative Commodity Research consultant Peter Fertig. "It all depends on how tactical people are in managing the situation at the Fukushima nuclear power plant.
FOREX-Yen hits 4-mth high vs dollar as intervention looms
NEW YORK, March 16 (Reuters) - The yen neared a record peak against the dollar on Wednesday, but analysts say expectations Japan will intervene to weaken the currency if it gets much stronger may provide a good opportunity to buy the greenback.
"The daily momentum is a bit oversold but not as much as in October," he said. "And the weekly.
U.S. corn drops to 2-mth low, wheat up 2 pct on crop worry
SINGAPORE, March 16 - U.S wheat futures rallied by 2 percent paring the previous session's 7.35 percent slump and soy also rallied as commodity and equity markets regained composure after a series of steep losses since Friday's earthquake in Japan. "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.
Japan rebounds after sell-off, lifts others
LONDON, March 16 (Reuters) - Japanese stocks rebounded from a major pummelling that some investors thought overdone, lifting equities elsewhere and allowing the yen to dip from a near record high against the dollar. "Uncertainty in the Fukushima nuclear power plant is clearly making market participants very nervous," said Kazuhiro Takahashi, general manager at Daiwa Securities Capital Markets in Tokyo.
'Get used to higher food costs'-experts
CHICAGO, March 15 (Reuters) - Higher food prices are here to stay.
A rising tide of global forces is supporting the surge in prices for important food staples like meat, dairy and grains, commodity experts said at the Reuters Global Food and Agriculture Summit on Tuesday.
"This is a pretty sustainable increase ... A number of factors have been building over time in terms of the commodity increase: world economic growth, rising crude oil prices, increased Chinese import demand all have conspired," said Bill Lapp, president of Advanced Economic Solutions, a commodity analytical firm based in Omaha, Nebraska.
20110317 0946 Soy Oil & Palm Oil Related News.
Soy Oil chart reading : upward correction range bound downside biased
US soybean futures finish higher, reversing a sharp selloff spurred by Japan-related demand concerns. Soybeans for May delivery settled 1.3% higher at $12.87/bushel. Soybeans were able to strengthen as the rebound in Japanese equities helped open the door for gains in agricultural commodities. Beans also benefited from an official estimate reducing China's 2011 soy acres plantings by 11%, says Rich Nelson at Allendale. Also, "reports of rains in Brazil disrupting harvests and delaying loadings of soybean supplies for export provided further support." (Source: CME)
Soyoil futures stabilize after facing sharp declines Tuesday, with the byproduct of soybeans also supported by higher crude oil futures. Ended up 0.08c higher at 52.96c/pound after giving up nearly all the day's gains. Soymeal for May delivery rose 1.1% to $344.50/short ton at the CBOT. (Source: CME)
Toepfer: German Rapeseed Winterkill To Pressure EU Biofuels (Source: CME)
Europe's biofuels market looks set to tighten this year after winterkill damaged much of Germany's rapeseed crop in recent weeks, the country's largest grain tradehouse Toepfer International said. Northern and eastern parts of Germany have suffered from severe temperature swings of between -12 and +15 degrees Celsius, leaving plants vulnerable to frost damage and hurting yields. "It is doubtful whether the winter rapeseed plants can still catch up completely the lag in development," said Toepfer. "After the delayed seeding last year in late summer the rapeseed plants are still extremely behind in development."
The U.S. Department of Agriculture forecasts a 6% drop in rapeseed output from the European Union in 2010-11, at 20.3 million metric tons. With between 60%-65% of Europe's biodiesel based on the grain and a raft of new EU regulations mandating an increase in biofuels use this year, markets look set to tighten. Output from Ukraine, the bloc's largest supplier, has also been halved by winterkill, meaning imports are expected to remain low. Ending stocks are therefore expected to fall to 1 million tons, leaving a stocks-to-use ratio at 4.1%, its lowest level in eight years. "After the 2010 harvest, which was at best 'average,' dependence on imports is particularly high this marketing year," said Toepfer. "Rapeseed supply is particularly tight in the EU market."
Palm oil falls more than 3 pct on Japan worries
JAKARTA, March 16 (Reuters) - Malaysian palm oil futures shed as much as 3 percent tracking other commodity prices lower as the nuclear crisis in Japan sent investors scrambling for perceived safe haven assets. "It's a sad scenario," said one trader. "There have been two attempts to recover since Friday, but the market has succumbed to selling pressure. Overnight, Chicago collapsed. It is time to form a bottom -- 3,250 should be a temporary bottom."
Rain dogs harvesting in Brazil's top soy state
PRIMAVERA DO LESTE, Brazil, March 15 (Reuters) - Soy farmers in Brazil's top soy-growing state Mato Grosso are struggling to harvest in heavy rains that have left fields soggy and cut the price of grains which are too damp.
Unusually heavy rains for the time of year have blighted what had been shaping up to be a good quality harvest in the state which grows 25 percent of Brazil's soy, after overcoming overly dry weather at its sowing stage late last year.
Wednesday, March 16, 2011
20110316 1842 FCPO EOD Daily Chart Study.
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.
20110316 1757 FKLI EOD Daily Chart Study.
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.
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.
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