20110505 0946 Global Market Related News.

  DJIA chart reading : pullback correction upside biased.

Hang Seng chart reading : downside biased with possible pullback correction.

Asia's growth to cool as inflation heats up
SINGAPORE May 4 (Reuters) - Soaring food and energy prices may temper Asia's economic outlook this year, putting central bankers in a tight spot as they try to cap inflation without choking off growth, Reuters polling data shows.
Economists have marked down 2011 growth forecasts for India and Australia since the start of the year, while they pushed up both growth and inflation forecasts for China. Growth estimates also brightened a bit for countries including Indonesia, Malaysia and Taiwan.

Asian Stocks Drop on Concern U.S. Economic Recovery is Waning (Source: Bloomberg)
Asian stocks declined, dragging a regional benchmark index lower for a third day, as reports that showed lower-than-forecast growth in U.S. service industries and employment sparked concern the recovery in the world’s biggest economy is faltering.

ADB Says 3 Billion People in Asia May Reach Europe-Level Incomes by 2050 (Source: Bloomberg)
Asia’s growth can propel three billion people to affluent levels by 2050 should policy makers successfully narrow inequalities and avoid falling into a so- called middle-income trap, the Asian Development Bank said. Successful national and regional policies may boost Asia’s gross domestic product to $148 trillion by mid-century, making up 51 percent of global output in 2050, the Manila-based lender said in a report today. In another scenario, where countries such as China, India, Indonesia and Vietnam see growth slow and others fail to stoke their expansions, the region would account for 32 percent, or $61 trillion, of global GDP in 2050, it said.

ADP Estimates U.S. Companies Added 179,000 Jobs in April (Source: Bloomberg)
Companies in the U.S. added workers in April, signaling the labor market is strengthening, data from a private report based on payrolls showed today. Employment increased by 179,000 in April from a revised 207,000 the prior month, according to figures from ADP Employer Services. The median estimate in the Bloomberg News survey called for a 198,000 advance this month.

Treasuries Rise After Report of Services Slump; Bill Rates Fall to Record (Source: Bloomberg)
Treasuries rose, pushing 10-year note yields to a six-week low, as private reports showed service industries in the U.S. expanded less than forecast in April and companies added fewer jobs last month than projected. Six-month bill rates reached a record low for a third consecutive day with the U.S. reducing sales of short-term securities as lawmakers negotiate an increase in the $14.3 trillion federal debt ceiling. The Treasury said it will auction $72 billion in 3-, 10- and 30-year debt next week even with the U.S. likely to exceed its borrowing capacity before or after Aug. 2. Federal Reserve Bank of Boston President Eric Rosengren said stimulus is necessary to spur the “anemic” economy.

U.S. factories busy in March, car sales up
WASHINGTON, May 3 (Reuters) - U.S. factory orders surged in March, posting a fifth straight monthly increase that showed a healthy manufacturing sector well placed to support economic recovery.
The Commerce Department said on Tuesday new orders for manufactured goods rose 3 percent to a seasonally adjusted $463 billion, well above Wall Street economists' forecasts for a 1.9 percent pickup.

U.S. Service Industries Expand at Weakest Pace Since August as Orders Cool (Source: Bloomberg)
Service industries in the U.S. expanded in April at the slowest pace in eight months as companies cut back in response to higher energy costs.

U.S. Treasury to Sell $72 Billion in Long-Term Debt, Sees ‘Steady’ Sales (Source: Bloomberg)
The U.S. Treasury Department plans to sell $72 billion in its quarterly sales of long-term debt next week and anticipates auction sizes will “remain steady” as Congress and the White House debate raising the debt limit.

Fed’s Williams Says High Inflation Is ‘Very Unlikely’ as Commodities Ease (Source: Bloomberg)
Federal Reserve Bank of San Francisco President John C. Williams said a period of high inflation is “very unlikely” because rising commodity prices spurred by global demand aren’t likely to keep climbing. “The economy today faces many pitfalls, but I don’t believe that runaway inflation is one of them,” the regional bank chief said today in his first policy speech as a central bank official. Even so, “one of the most important policy questions we are grappling with at the Fed has to do with inflation.”

Employers in U.S. Announced 4.8% Fewer Job Cuts in April, Challenger Says (Source: Bloomberg)
U.S. employers announced fewer job cuts in April than the same month last year, a sign that the labor market is firming. Planned firings decreased 4.8 percent to 36,490 last month from April 2010, according to a report today from Chicago-based Challenger, Gray & Christmas Inc. Government agencies accounted for the biggest cutbacks by industry.

California Tax Revenue $2.3 Billion Ahead of Plan, May Help Shave Deficit (Source: Bloomberg)
California has collected $2.3 billion more from income taxes this fiscal year than was projected, a gain that may help Governor Jerry Brown and lawmakers fill what remains of a $26 billion deficit. Income-tax collections, which compose about 55 percent of general-fund revenue, were 5.1 percent above what was anticipated for July 1 through April 30, the nonpartisan Legislative Analyst’s Office said in a report today. At the same time, corporate taxes were $654 million below projections.

China’s ‘Hawkish’ Central Bank May Tighten Even as Economic Growth Cools (Source: Bloomberg)
China’s central bank said taming inflation is its top priority, signaling that more tightening is possible even after a manufacturing survey showed that growth may be moderating in Asia’s biggest economy. “Stabilizing prices and managing inflation expectations are critical,” the People’s Bank of China said in a first- quarter monetary policy report published yesterday. Bank reserve requirements have no “absolute ceiling,” the report said, restating Governor Zhou Xiaochuan’s comment on April 16.

China inflation to ease in second half -c.banker
BEIJING, May 4 (Reuters) - Chinese inflation will moderate in the second half of the year as government measures to curb price rises hit their mark, a vice central bank governor said in remarks published on Wednesday.
The official China Securities Journal also cited Yi Gang as saying that China would keep mopping up excess cash in the economy by raising banks' required reserves and issuing central bank bills.

Trichet’s ‘Close Call’ Decision May Signal How Fast ECB Will Raise Rates (Source: Bloomberg)
European Central Bank President Jean- Claude Trichet today may indicate just how fast he’s prepared to raise interest rates over the coming months. While policy makers meeting in Helsinki will keep the benchmark rate at 1.25 percent, according to all 48 economists in a Bloomberg News survey, any pledge by Trichet for “strong vigilance” would signal an increase as soon as June. The Frankfurt-based central bank in April raised borrowing costs from a record low for the first time in almost three years.

Greece Should Get Loan Terms Extended to Avoid Restructuring, Adviser Says (Source: Bloomberg)
Greece doesn’t need to restructure its debt for now and should only consider an extension of its international loans, said Herakles Polemarchakis, an economic adviser to Greek Prime Minister George Papandreou. “The debt has to be addressed,” Polemarchakis said in an interview at an event late yesterday at the London School of Economics. “I think that the rescheduling -- or re-profiling as it is called sometimes -- of the 100 billion euros given by the International Monetary Fund and the European Union, that’s something that could easily be done.”

Lagarde Says Euro’s Strength Brings Benefits by Cutting Raw-Material Costs (Source: Bloomberg)
A strong euro benefits the region’s companies as it cuts costs of raw materials priced in dollars and forces European firms to seek additional ways to boost competitiveness, French Finance Minister Christine Lagarde said. The euro is doing “extremely well” Lagarde said in an interview with Bloomberg Television in Hanoi, even as she added that she would like to see a “strong dollar.” The European currency has advanced 11 percent against the dollar so far this year as the European Central Bank raised rates and the Federal Reserve continued to pledge “exceptionally low” borrowing costs.

U.K. House Prices Fell for the First Time in Three Months, Nationwide Says (Source: Bloomberg)
U.K. house prices fell in April for the first time in three months and values will probably remain unchanged or decline “modestly” during the rest of this year, Nationwide Building Society said. The average cost of a home declined 0.2 percent from March to 165,609 pounds ($273,800), Britain’s biggest customer-owned lender said in an e-mailed report today. That’s the first decrease since January and compares with the median forecast for a 0.1 percent increase in a Bloomberg News survey of 14 economists.

Russia to Resist Rushing Higher Rates Even as Prices Climb, Economists Say (Source: Bloomberg)
Russia will avoid speeding up interest-rate increases even after inflation accelerated last month as central bankers seek to avoid choking economic growth, economists said. The inflation rate climbed to 9.6 percent from 9.5 percent in March, matching the fastest pace since October 2009, a report showed yesterday. The central bank unexpectedly raised its main interest rates last week for a second time this year to rein in price growth. At 8.25 percent, the refinancing rate remains negative when adjusted for inflation.

Euro Snaps Decline Versus Yen on Speculation ECB Will Signal Higher Rates (Source: Bloomberg)
The euro snapped a two-day decline versus the yen on speculation European Central Bank President Jean-Claude Trichet will signal more interest-rate increases after a policy meeting today. The single currency traded within 0.3 percent of a 13-month high versus the pound before a German report that economists said will factory orders gained for a third month, adding to signs the region is picking up. New Zealand’s dollar rose after a government report showed employers added more jobs in the first quarter than economists forecast.

Mexico, Russia, Thailand Add $6 Billion of Gold to Reserves, IMF Data Show (Source: Bloomberg)
Mexico, Russia and Thailand added gold now valued at about $6 billion to their reserves in February and March as prices advanced to a record, the dollar weakened and Treasuries lost investors money. Mexico bought 93.3 metric tons since January, adding to holdings of about 6.9 tons, according to International Monetary Fund data. Russia increased its reserves by 18.8 tons to 811.1 tons in March and Thailand expanded assets by 9.3 tons to 108.9 tons in the same month, the data show.

FOREX-Euro holds slim gains vs dollar, awaits Portugal news
NEW YORK, May 3 (Reuters) - The euro was up slightly against the dollar on Tuesday in choppy trading and was likely to post further gains this week on institutional buying as investors expected more euro zone rate hikes.
But weakness in stocks and commodities has limited gains in the euro, with investors paring back risky trades amid fears of a geopolitical backlash following the death of al Qaeda leader Osama bin Laden.

Stocks dip; Portugal yields fall after bailout
LONDON, May 4 (Reuters) - World stocks fell further from last week's three-year high as falling commodity prices and concerns about signs of economic slowdown in China prompted investors to scale back their risky positions. Portuguese bond yields fell after Portugal agreed a three-year 78-billion-euro ($116 billion) bailout with the European Union and IMF on Tuesday, becoming the third euro zone country in a year, after Ireland and Greece, to seek financial aid.

20110505 0943 Global Commodities Related News.

FAO sees crop concerns driving higher food prices
ASTANA, May 3 (Reuters) - World food prices are set to rise again as concerns persist over Chinese and U.S. winter crops and global production lags increasing demand, the head of the United Nations' Food and Agriculture Organisation said on Tuesday.
FAO Director General Jacques Diouf told Reuters Insider that rising output of biofuels was also contributing to food shortages, consuming more than 100 million tonnes a year of cereals that would otherwise be used in food production.

Corn (Source: CME)
US corn futures close higher as supply worries boost the market even as other commodities stumble. Concern about extremely tight supplies this summer fueled gains, along with the sluggish start to the planting season. Farmers unable to plant corn on time will switch to soybeans instead because corn yields drop the later the crop is planted. "I think the trade is starting to contemplate yield reductions, if not acreage reductions," says Western Milling analyst Joel Karlin. May CBOT corn climbs 7 1/2c to $7.26 1/2 per bushel.

Wheat (Source: CME)
US wheat futures fall to the lower end of their recent trading range, dropping more than 2% on a broad commodity selloff and reports of less-fearful crop conditions from the Kansas winter wheat tour. Product for July delivery ended down 21 1/4c at $7.72/bushel at the CBOT. Investors broadly reduced risk exposure, overshadowing supportive crop concerns as the threat of smaller production prospects amid declining winter wheat crop conditions and wet weather idling spring wheat seedings in the northern Plains. Some analysts say the market was overvalued based on world supply and demand, and without any surprises from the tour, futures had little to support them.

Rice (Source: CME)
The most-actively traded US rough rice futures contract finished limit down as the market was caught up in a broader commodity selloff. Weakness in the cash market adding to the defensive tone, said Jack Scoville at Price Futures Group. The cash market never responded to the previous rally, and once funds began to exit commodities, futures lacked strength to withstand the pressure. However, rice still has some serious production issues limiting losses, with dryness in Texas and wet conditions delaying plantings in the Delta supportive features, Scoville noted. CBOT July rice finished down 50c at $14.89/hundredweight. The daily limit expands Thursday to 75c.

Corn Futures Advance 0.6% to $7.335 Per Bushel; Wheat Is Little Changed (Source: Bloomberg)
Corn for July delivery advanced 0.6 percent to $7.335 per bushel on the Chicago Board of Trade at 8:01 a.m. in Singapore, while soybeans for delivery the same month slipped 0.2 percent to $13.4875 per bushel. Wheat futures were little changed at $7.7175 per bushel.

US corn, wheat, soy fall on firmer dollar, weather outlook
SYDNEY, May 4 (Reuters) - U.S. corn futures extended falls as a stronger dollar and falling oil prices weighed on the soft commodities complex."On a macro theme all commodities seem to be overbought and perhaps the catalyst for a correction will be a stronger U.S. dollar," said Adam Davis, senior grains trader at Merricks Capital in Melbourne which invests in agricultural commodities.

Dryness now damaging German grain crops - farmers
HAMBURG, May 4 (Reuters) - The prolonged period of dry weather in Germany has now started to damage grain and rapeseed crops, German farming association DBV said on Wednesday.
Rapeseed had especially suffered from a very cold winter followed by dry weather, it said. There is also concern about grain crops.

China's top wheat area hit by extended drought-paper
BEIJING, May 4 (Reuters) - China's Henan province, the country's largest wheat area, has hit by lingering dry weather, and local authorities urged farmers to water their crops at the crucial growing stage despite the high costs it could incur, state media reported on Wednesday.
China Securities Journal cited Henan Government Office of Flood Control and Drought Relief Headquarters as saying that 1.078 million hectares of wheat in the province was affected by drought. The province produces about 26 percent of China's total wheat output.

Dry weather pressures wheat potential in western Kansas
COLBY, Kansas, May 3 (Reuters) - Wheat fields in northern and central Kansas showed yield potential that was slightly below average as dry weather hampered development of the crop in western portions of the top wheat-producing state, crop scouts on annual tour found on Tuesday.
Scouts on the Wheat Quality Council's tour of hard red winter wheat fields in Kansas pegged average yields in northern and central regions of the state at 40.0 bushels per acre. The first day's results of the tour have averaged 41.5 bushels per acre during the past nine years. In 2010, the results from the first day of the three-day tour estimated yields at 40.7 bushels per acre.

US winter wheat may fall to 5-year low on drought
CHICAGO, May 3 (Reuters) - A severe drought has slashed the U.S. winter wheat crop to the smallest in five years, a Reuters Poll showed, but bread lovers will be spared the pinch in their wallets as the shortfall has been factored into wheat futures.
Tuesday was the first day for a tour of wheat fields in the U.S. Plains hard red winter wheat region and crop scouts said central Kansas wheat showed good yield potential after receiving some timely rains last week.

Corn OTC volume jumps as weather threatens crop
CHICAGO, May 3 (Reuters) - A big trade of 8,000 contracts in over the counter (OTC) corn in the July/December spread on Monday was tied to wet weather that is slowing U.S. corn plantings and a slowdown in export demand for U.S. corn.
"There were 8,000 July/December traded over the counter after the crop progress report was released yesterday afternoon. This allowed players to hedge their risk in a very efficient manner," said John Murphy, Atlas Commodities, a prominent company in the OTC grain business.

Open window to plant U.S. corn, wheat limited
CHICAGO, May 3 (Reuters) - The U.S. Corn Belt is getting a break from recent rains but heavy showers return on Thursday with eastern belt to see the most, keeping farmers stalled from planting corn, a forecaster said.
"There is no sight of a long stretch of open weather to cause planting progress to surge. We can hope for steady progress in the western Corn Belt and that the east will dry out a little," said Mike Palmerino, meteorologist with Telvent DTN weather service.

Average To Below Normal Temperatures Seen In W Canada's Grain Growing Areas (Source: CME)
Producers in western Canada who are anxious to start seeding grain and oilseed crops for the 2011-12 (August through July) crop year continue to keep a close watch on the weather and new maps issued by Environment Canada are calling for average to below normal temperatures and above average precipitation over the next couple of months. Updated weather outlooks issued by Environment Canada for May through July 2011 call for average readings in the eastern half of British Columbia, central Alberta, central and southern Saskatchewan and much of Manitoba. Much of Ontario was also seen experiencing average temperatures. Below normal readings were expected along the western Coast of British Columbia and much of southern Alberta. In Quebec and the most of the Maritimes, temperatures will be above normal, based on the Environment Canada weather models.
Precipitation during the May through July period was forecast by Environment Canada to be above average throughout much of British Columbia, Alberta, Saskatchewan, Manitoba and across most of Ontario. Average precipitation was anticipated across western Quebec while above normal precipitation was seen occurring in eastern Quebec and the Maritimes. Heading into August, Environment Canada forecast that temperatures across western and eastern Canada will be above normal. However, precipitation across the Canadian prairies in August was seen as being above normal. Below normal precipitation was forecast by Environment Canada for the coast line along British Columbia and the more northerly areas of Ontario and western Quebec. The eastern areas of Quebec and the Maritime province were forecast to see above normal precipitation levels.

EU Agricultural Exports Surge (Source: CME)
European Union agricultural exports jumped 21% in value to a record EUR91 billion in 2010, data published by the EU's executive arm late Tuesday showed, making the bloc a net exporter for the first time in four years. "We estimate that 75% of the increase in value of exports is driven by an increase in volume of sales, reflecting stronger demand, while 25% may be attributed to an increase in prices" said the European Commission. Exports were buoyed by a surge in demand from emerging economies such as China and Russia as a rebound in the global economy boosted world trade by 12% to a record high, the Commission said. Rising commodities prices and a weakening euro also helped the 27-nation bloc swing to an agricultural trade surplus of EUR6 billion, and it is now the world's second-largest agricultural exporter behind the U.S. "The surplus is largely due to growth in the value of exports after the contraction of trade in 2009 linked to economic crisis and the drop in commodity prices," the report said.
"Exchange rate fluctuations may also have contributed to the upsurge in exports, given the continued weakening of the euro against a number of major currencies in 2010." Exports to China and Hong Kong both posted a record-breaking 50% jump, with the value of sales to both now generating more than EUR1 billion each, the report said. But the largest absolute increase was to Russia, where the value of agricultural imports from the EU rose nearly one-third to EUR2.2 billion, making Russia the EU's second-largest market after the U.S. Severe drought in the Black Sea, which prompted both Kiev and Moscow to restrict grain exports, are also estimated to have given EU wheat exports a EUR557 million boost and cut imports by EUR270 million, the Commission said. Wheat was the EU's second-highest value export in 2010 at EUR3.4 billion.
The EU also remains by far the world's biggest agricultural importer with imports worth EUR83 billion in 2008-10, well ahead of the U.S. More than 70% of total EU imports come from developing countries, the report said.

Sugar Falls to Seven-Month Low on Thai Output Gain; Coffee, Cocoa Decline (Source: Bloomberg)
Sugar fell to the lowest since September on forecasts for increased exports from Thailand, the world’s second-largest shipper, and that China may take further steps to slow growth. Coffee and cocoa also retreated. Thailand’s sugar exports may reach a record 7 million tons this season, according to researcher F.O. Licht. The People’s Bank of China said stabilizing consumer prices and managing inflation expectations are “critical,” after policy makers from India and Brazil yesterday signaled further interest-rate increases are possible. Raw-sugar futures have plunged 34 percent this year.

Arabica coffee eases, near 34-year peak; sugar lower
LONDON, May 4 (Reuters) - ICE arabica coffee futures edged lower in early trade but remained within sight of the prior session's 34-year peak, while sugar edged lower, weighed by an improving supply outlook. Arabica coffee futures on ICE dipped in early trade with the market looking to consolidate just below the prior session's 34-year peak.

Indonesia sugar output seen at 1.77 mln tonnes-attache
WASHINGTON, May 3 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Indonesia: "In marketing year 2010/11 Indonesia is estimated to produce 1.77 million tonnes of plantation white sugar, a decrease from 1.91 million tonnes produced in the previous year. Imports of raw sugar are forecast to increase to 2.84 million tonnes compared to 2.6 million tonnes in 2009/10. This increase is attributed to lower domestic production and an increased operational demand as new Indonesian sugar refineries have come on-line.

Ivorian cocoa exports to start soon, midcrop worry
ABIDJAN, May 3 (Reuters) - Ivory Coast cocoa exports are likely to resume by Friday, but forecasts for its mid-crop harvest may be cut by a third from the expected 300,000 tonnes over security and logistics concerns in the hinterland.
Cocoa exporters said on Tuesday they were making final preparations to resume exports after resolving a row with the new government of president Alassane Ouattara last week over taxes.

Ghana poised to crush cocoa output target
ACCRA, May 3 (Reuters) - Ghana's cocoa output is running more than 50 percent higher than a year ago, easing the market impact of delayed shipments from neighbouring Ivory Coast and putting the country on track to beat its full-season target.
Purchases declared by private buyers to industry regulator Cocobod -- the best reflection of output from the world's No. 2 grower -- hit 797,847 tonnes by April 21 since the start of the season in October, according to official data seen on Tuesday.

Ivory Coast patchy rains nurture cocoa mid-crop
ABIDJAN, May 3 (Reuters) - Patchy rains punctuated by hot weather in Ivory Coast's main cocoa-growing regions last week augured well for a mid-crop seen longer than last season's, farmers and analysts said on Tuesday.
The world's top cocoa grower is gradually recovering from a bloody post-election power struggle, with exports due to restart any day and exporters forecasting a mid-crop of between 250,000 and 300,000 tonnes.

S.Africa 2011/12 sugar output fcast at 1.923 mln T
JOHANNESBURG, May 3 (Reuters) - South Africa's 2011/12 sugar output is estimated at 1.923 million tonnes, up from the previous season's output of 1.909 million tonnes, according to data from the South African Sugar Association (SASA) seen by Reuters on Tuesday.
Sugarcane crush is forecast at 16.537 million tonnes, up from the previous season's output of 16.016 million, the industry association, which represents producers and millers of the sweetener in Africa's biggest economy, said on its website.

Oil Falls for Fourth Day as U.S. Economic Recovery Slows, Stockpiles Gain (Source: Bloomberg)
Oil declined a fourth day in New York, the longest losing streak in almost eight weeks, as rising U.S. supplies and slowing economic growth stoked speculation fuel demand may weaken in the world’s biggest crude consumer. Futures dropped as much as 0.7 percent after an Energy Department report yesterday showed stockpiles rose to the highest level since October. Prices also slipped after separate reports showed a lower-than-forecast expansion in service industries and employment. Labor Department data tomorrow may show the U.S. generated fewer jobs in April than in March.

Silver Has Biggest Three-Day Drop Since 1983 (Source: Bloomberg)
Silver had its biggest three-day drop since March 1983, crude oil tumbled to a two-week low and gold, copper and grains fell after money managers made near-record bets on high commodity prices in April. Silver plummeted 19 percent since April 29 as increases in Comex margin requirements drove investors away, and oil declined after a U.S. report showed supplies surged. A drop in a gauge of U.S. service industries and lower-than-forecast jobs growth damped economic optimism. Twenty-two of 24 commodities in the Standard & Poor’s GSCI Total Return Index fell. Treasuries rose.

ETF Securities aluminium, zinc, lead ETCs list on LSE
LONDON, May 3 (Reuters) - ETF Securities listed physically backed exchange-traded commodities (ETCs) for aluminium, zinc and lead on the London Stock Exchange on Tuesday, it said.
The physically backed industrial metal ETCs, ETFS Physical Aluminium, ETFS Physical Lead and ETFS Physical Zinc follow previous listings of copper , nickel  and tin , which launched on the LSE on Dec 10, 2010.
ETF Securities said in December it expected a first-quarter listing for the products.

China aluminium plate exports up on fears of rebate cut-industry
HONG KONG, May 4 (Reuters) - Aluminium plate exports from China are expected to remain robust in the second quarter as firms rush deals on fears that Beijing may cut or cancel export rebates that make the shipments attractive when paired with high LME prices, industry sources said on Wednesday.
Exports of aluminium plates, sheets and strips, made mainly from primary aluminium, rose 73 percent rise in the first quarter of this year.

Copper demand, price to remain high-Aurubis
PIRDOP, Bulgaria, May 4 (Reuters) - Europe's biggest copper maker, Aurubis , expects overall demand for copper to remain strong this year with prices picking up at times again to $10,000 a tonne, a senior manager of the company said.
Peter Willbrandt, member of the executive board in charge of primary copper production said late on Tuesday that a recovering economy in emerging markets and Europe, and the need for reconstruction of Japan was increasing demand for copper.

Inco's Indonesian investment to rise 27 pct in 2011
JAKARTA, May 4 (Reuters) - International Nickel Indonesia (Inco)  will invest an estimated $232 million at its Sulawesi mines in 2011, up 27 percent from the previous year, the firm said on Wednesday.
The investment will include $120 million for sustaining capital, $97 million for growth capital and $15 million for health, safety and the environment, Inco said in an emailed statement to Reuters.

S.Korea seeks 1,000 T zinc ingot
SEOUL, May 4 (Reuters) - South Korea has issued a tender to buy 1,000 tonnes of zinc ingot for shipment by July 15 to the port of Incheon, state-run Public Procurement Service said.
The tender will close at 2 p.m. (0500 GMT) on May 12, the agency said on its website Tuesday.

METALS-Copper dented by concerns over China tightening
LONDON, May 4 (Reuters) - Copper dropped to a seven-week low on Wednesday as investors, worried that tightening measures in top consumer China would constrict demand, scaled back exposure to commodities.
Three-month copper  on the London Metal Exchange was untraded in official rings but was quoted at $9,195/9,200, down from Tuesday's close at $9,350 a tonne. The metal used in power and construction earlier hit its lowest since March 15 at $9,155.50 a tonne.
Signs of further plans by Beijing to draw in monetary policy, despite manufacturing data that showed its economy is cooling, have reignited worries about a knock-on to copper consumption.

PRECIOUS-Silver hits three-week low, drags down gold
LONDON, May 4 (Reuters) - Silver fell to a three-week low day on Wednesday and gold eased as precious metals came under pressure to correct after a strong rally in the last few weeks.
U.S. silver futures have lost 14 percent over the past four sessions, wiping out gains from the previous three weeks that took the price to a 31-year top just below $50 on April 25.

20110505 0942 Soy Oil & Palm Oil Related News.

 Soy Oil chart reading : side way range bound little downside biased.

Reuters: India's PEC tenders to buy 15,000 tonnes of palm olein oil.

Reuters Survey :
Malaysia April 2011 Crude Palm Oil
- Exports seen up 5.3% at 1.3 million tonnes from March 2011
- Stocks seen up 9% at 1.76 million tonnes from March 2011
- Output seen up 8.8% at 1.54 million tonnes from March 2011 



Soybeans (Source: CME)
US soybean futures retreat for the third-consecutive day, succumbing to the day's broad commodity selling. The theme of large investors reducing risk in commodities kept pressure on prices, with slower export demand and the threat of some intended planting of corn shifting to soybeans aiding the lower tone, analysts said. Soybeans for July delivery dropped 0.9% to $13.52/bushel.

Soybean Meal/Oil (Source: CME)
US soy-product futures fell in unison with soybeans, succumbing to widespread investment-fund selling across the commodity sector. Soymeal and soyoil weren't immune to the selling, with weakness in crude-oil futures attracting sellers to soyoil as well. Crude influences soyoil due to its use in making biofuels. CBOT July soyoil settled 0.9% lower at 57.17c/pound and July soymeal ended 0.7% lower at $352.50/short ton.

Palm oil off 2-wk low on supply build up, external markets
KUALA LUMPUR, May 4 (Reuters) - Malaysian palm oil futures ended off two-week lows on growing stocks and reduced risk taking, although higher crude oil limited losses. "The market has been dragged lower by improving output, mainly in Malaysia but also in Indonesia," said Standard Chartered analyst Abah Ofon in a note to clients.

Egypt oilseed output seen up in 2011/12-attache
WASHINGTON, May 3 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Egypt: "Egyptian oilseed production forecast to increase in 2011/2012 as farmers plant more cotton. Production of both cotton and soybean meal and oil is also forecast to increase as a result of the expected increase in the production of cotton and imports of soybeans.

Oil World raises Brazilian soybean crop forecast
HAMBURG, May 3 (Reuters) - Hamburg-based oilseeds analyst Oil World on Tuesday raised its forecast of Brazil's 2011 soybean harvest by 0.5 million tonnes as crop yields were better than expected despite recent unfavourable weather.
Oil World now forecasts Brazil's 2011 soybean crop at a new record 72.5 million tonnes compared with 72 million tonnes it forecast in April and 70.5 million tonnes expected in March. Brazil harvested 68.6 million tonnes in 2010.

India backs off talk of cutting soyoil imports
BUENOS AIRES, May 3 (Reuters) - India, the top buyer of Argentina's soyoil, is not planning to reduce orders despite warnings Argentine import curbs on Indian goods could hit trade in the edible oil, an Indian official said on Tuesday.
India replaced China as the No. 1 importer of Argentine soyoil a year ago when Beijing halted imports of the soybean product in retaliation for Argentine import curbs on Chinese manufactured goods.

20100504 1838 FCPO EOD Daily Chart Study.

FCPO closed : 3265, changed : -6 points, volume : higher.
Bollinger band reading : side way range bound little downside biased.
MACD Histrogram : weakening, buyer leaving.
Support : 3250, 3200, 3150, 3100 level.
Resistance : 3270, 3300, 3350, 3420 level.
Comment :
FCPO closed marginally lower with better volume changed hand while soy oil overnight closed lower due to U.S. Dollar rebounded higher and currently trading nearly unchanged.
News wise, Reuters reported that Indonesia largest listed plantation firm recorded 25.7% higher production of palm oil for the period of 1st quarter this year compare to same period last year.
Daily chart formed a up doji bar candle similar to last Friday candle positioned lower in between middle and lower Bollinger band level after market opened gap down, traded lower hit 2 weeks low and recovered upwards all the way salvaging most of the intraday losses to closed near the high of the day. 
Technical reading remained interpreting a side way range bound little downside biased market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110504 1727 FKLI EOD Daily Chart Study.

FKLI closed : 1516 changed : -10.5 points, volume : higher.
Bollinger band reading : side way range bound little downside biased.
MACD Histrogram : falling, seller taking some exposure.
Support : 1515, 1500, 1485, 1470 level.
Resistance : 1530, 1540, 1550, 1565 level.
Comment :
FKLI closed recorded loss again with increasing volume participation doing about 12.5 points discount compare to cash market that closed little lower while regional markets traded mostly in red.
News reported that higher U.S. Dollar triggered sell down in commodities influencing investor to stay caution avoid taking higher risk.
Daily chart formed a down doji bar candle closed below middle Bollinger band level with the bandwidth getting narrow after market opened little lower, edge up slightly and sell down tested lower Bollinger band level before recovered partial of intraday losses to closed off the low of the day.
Technical reading turned to suggesting a side way range bound little downside biased market development testing support and resistance level. Market looks weak for the near term as price closed below plotted upward line with MACD indicators failed to do a positive cross up.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110504 1512 Global Market & Commodities Related News.

Asia stocks fall, dollar rises as risky positions cut
SINGAPORE, May 4 (Reuters) - Asian shares fell and the U.S. dollar rose on Wednesday, with falling commodity prices spooking investors and causing a broad pullback in risk taking.
"Risky assets are having a respite, having advanced rather quickly in more recent weeks," said Andy Ji, a currency strategist and economist with Commonwealth Bank of Australia in Singapore.  

Indonesia's Astra Agro says palm oil output rises in Q1
JAKARTA, May 4 (Reuters) - Astra Agro Lestari  produced 275,100 tonnes of crude palm oil (CPO) during the first quarter, up 25.7 percent versus the same period last year, Indonesia's largest listed plantation firm said on Wednesday.
The firm had a total of 263,608 hectares of palm oil plantations by the end of the first quarter, it said in a statement to Indonesia's Stock Exchange.

OPEC oil output hits 23-month low in April
LONDON, May 3 (Reuters) - OPEC output fell to a 23-month low in April as extra oil from Saudi Arabia and Nigeria did not make up for supplies lost due to fighting in Libya and oilfield maintenance in Angola, a Reuters survey found on Tuesday.
Supply from all 12 members of the Organization of the Petroleum Exporting Countries averaged 28.42 million barrels per day (bpd), down from a revised 28.48 million bpd in March, the survey of oil companies, OPEC officials and analysts found.

U.S. corn gains as focus returns to tight supplies
SYDNEY, May 4 (Reuters) - Nearby U.S. corn futures posted modest gains in early Asian trade on Wednesday as focus returned to tight old crop supplies, while the December harvest month contract held firm on slow planting progress in the U.S. corn belt.
Corn's rise in early trade followed a 1.5 percent fall on Tuesday as the dollar rose and oil prices dropped more than 2 percent.

Ivorian cocoa exports to start soon, midcrop worry
ABIDJAN, May 3 (Reuters) - Ivory Coast cocoa exports are likely to resume by Friday, but forecasts for its mid-crop harvest may be cut by a third from the expected 300,000 tonnes over security and logistics concerns in the hinterland.
Cocoa exporters said on Tuesday they were making final preparations to resume exports after resolving a row with the new government of president Alassane Ouattara last week over taxes.

Ghana poised to crush cocoa output target
ACCRA, May 3 (Reuters) - Ghana's cocoa output is running more than 50 percent higher than a year ago, easing the market impact of delayed shipments from neighbouring Ivory Coast and putting the country on track to beat its full-season target.
Purchases declared by private buyers to industry regulator Cocobod -- the best reflection of output from the world's No. 2 grower -- hit 797,847 tonnes by April 21 since the start of the season in October, according to official data seen on Tuesday.

Dry weather still significant concern for EU wheat
LONDON, May 3 (Reuters) - Dry weather threatens to reduce wheat yields in parts of western Europe with the need for showers getting more urgent, crop analysts said on Tuesday.
"Concerns are starting to grow, certainly as we are expecting to see another largely dry week ahead of us. It is likely to impact yields," Jack Watts, analyst with the Home Grown Cereals Authority said, referring to crops in Britain, the European Union's third largest wheat producer.

Kazakhs cut wheat export forecast to 5.5 mln T
ASTANA, May 3 (Reuters) - Kazakhstan has cut its wheat export forecast for the current marketing year to around 5.5 million tonnes, its second downward revision since March, the newly appointed agriculture minister said on Tuesday.
Asylzhan Mamytbekov, former chairman of state agricultural holding Kazagro, did not give a reason for the forecast decline in shipments from Kazakhstan, the world's seventh-largest wheat exporter. The ministry's previous forecast was 6 million tonnes.

Philippines sees record dry season rice harvest
MANILA, May 3 (Reuters) - The Philippines' rice harvest in the current dry crop season may touch record high levels due to early rains in the first quarter, putting less pressure on the government to import more of the staple, Agriculture Secretary Proceso Alcala said.
Manila said last month it expects to surpass its rice production forecast of 7.6 million tonnes in the first half, which covers the dry crop period. It estimates total production this year to reach a record 17.46 million tonnes, more than 10 percent higher than last year's output.

Shanghai copper falls on dollar rebound, global outlook
SINGAPORE, May 4 (Reuters) - Shanghai and London copper fell on Wednesday, weighed down by fears of further rebounds in the dollar and global economic uncertainty, shrugging off comments by a China central bank official that inflation will moderate in the second half.
"Uncertainties that the dollar may rebound are putting pressure on commodity prices," China Futures Co analyst Yang Jun said.

US silver headed for third day of loss, dragging down gold
SINGAPORE, May 4 (Reuters) - COMEX silver dropped 3 percent on Wednesday, down for a third straight session, and gold faltered as precious metals came under pressure to correct after a strong rally in the last few weeks.
"On the way up, it (silver) was too fast and now we are seeing a general liquidation of long positions," said a Singapore-based trader.

20110504 1139 Global Market & Commodities Related News.

GLOBAL MARKETS: Commods dive, pulling stocks down; dollar jumps
NEW YORK, May 3 (Reuters) - Commodities suffered their biggest one-day loss in two weeks on Tuesday, pulling stocks on Wall Street down as well, after fear that huge price gains last month had made everything from oil to silver too costly.
"You've had a tremendous run-up here, so you've got some profit-taking and an underlying rotation" out of commodity shares into more defensive sectors, said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

OIL: Oil falls as India, dollar spark sell-off
NEW YORK, May 3 (Reuters) - Oil prices dropped more than 2 percent on Tuesday as an interest rate increase by India added to concerns about demand and gains in the dollar helped spark a technical sell-off.
"The slide in oil has come in response to equities losses and the dollar entering positive territory," said Matt Smith of Summit Energy in Louisville, Kentucky.

100 yrs after boom, shale makes Texas oil hot again
NEW YORK, May 3 (Reuters) - A century after a gusher at the Spindletop field in Beaumont, Texas, ushered in the first U.S. oil boom, a quieter oil craze is underway 300 miles west in a chain of counties more famous for cattle than crude.
Over the past two years, some 30 companies have moved in to a shale prospect in South Texas called the Eagle Ford that could add 420,000 barrels per day (bpd) to U.S. crude oil production, nearly matching the output of OPEC member Ecuador.


NATURAL GAS: NYMEX natgas futures open interest hits record high
NEW YORK, May 3 (Reuters) - Natural gas futures open interest hit a record high this week as prices crept higher, backed by a firm physical market and some new buying as sentiment gradually grew more bullish.
Open interest (OI), or the number of longs or shorts outstanding, in New York Mercantile Exchange natural gas futures hit a record high 992,434 on Monday, easily eclipsing the previous benchmark high of 983,802 set on April 18, 2011.

EURO COAL: DES ARA Jly trades at $127.75, down $1.00
LONDON, May 3 (Reuters) - Prompt European delivered physical coal fell by around $1.00 a tonne on Tuesday after a fall across most commodity and energy prices.
"We're seeing a lot more enquiry from China for all grades of Indonesian coal," one trader said.

COMMODITIES: Copper rises, bucks trend as silver slumps
NEW YORK, May 3 (Reuters) - Copper futures rose on Tuesday, bucking the weak trend in commodities after U.S. data showed strong factory orders, while silver fell on heavy speculative selling that sent it to its biggest two-day loss since 1987
"I think that economic news is helping copper and base metals," said Justin Lennon, analyst with Mitsui Bussan Commodities in New York.

20110504 1050 Global Economic Related News.

India: Central bank raised benchmark interest rates by 0.5 percentage points after forecasting inflation will stay at an "elevated level" until at least September. The Reserve Bank of India lifted the repurchase rate to 7.25% from 6.75%, according to a statement in Mumbai. The central bank boosted the reverse repurchase rate to 6.25% from 5.75%. (Source: Bloomberg)

Australia: RBA holds key rate at 4.75% as currency gain tempers prices. "The rising exchange rate will be helping to hold down prices for some consumer products over the coming few quarters," RBA Governor Glenn Stevens said in a statement after holding the overnight cash rate target at 4.75%, as forecast by 21 of 22 economists surveyed by Bloomberg News. (Source: Bloomberg

SEA: Philippines, Malaysia will consider rate rises to damp inflation
The Philippine and Malaysian central banks will consider raising interest rates as Asia fights accelerating inflation stoked by surging oil and food prices. Bangko Sentral ng Pilipinas will increase its benchmark rate by a quarter of a percentage point to 4.5% tomorrow, according to 12 of 16 economists surveyed by Bloomberg News. Bank Negara Malaysia may end its rate-rise pause the same day with a quarter-point advance to 3%, seven of 16 economists said in another Bloomberg survey, the highest number expecting an advance since the last boost in July 2010. (Bloomberg)

US: Orders placed with factories climb more than forecast
Orders placed with US factories rose more than forecast in March on increasing demand for machinery and computers that points to further gains in business spending. Bookings for manufacturers’ goods climbed 3%, a fifth consecutive increase, after a 0.7% February advance, the Commerce Department said today in Washington. The report also revised up estimates for capital equipment bookings issued last week. (Bloomberg)

UK: Manufacturing Index dropped to seven-month low in April
UK manufacturing index fell to a seven-month low in April amid declining consumer confidence and falling construction orders. The gauge based on a survey by Markit Economics and the Chartered Institute of Purchasing and Supply fell to 54.6 from a revised 56.7 in March, according to a report published in London today. The median forecast of 19 economists in a Bloomberg News survey was for a decline to 57 from a previous March reading of 57.1. A measure above 50 indicates expansion. (Bloomberg)

EU: Producer-Price Inflation unexpectedly accelerates
European producer-price inflation unexpectedly accelerated to the fastest in 2 1/2 years in March, adding to concerns that surging energy costs will feed through to consumers and prompt the European Central Bank to raise interest rates further. Factory-gate prices in the euro region jumped 6.7% from a year earlier, the fastest since September 2008, after a 6.6% gain in February, the European Union’s statistics office in Luxembourg said today. Economists had projected a March increase of 6.6%, according to the median of 13 estimates in a Bloomberg news survey. In the month, prices advanced 0.7%. (Bloomberg)

China: PBOC signals tightening may come even as growth cools
China’s central bank said controlling inflation is its top priority, even after a manufacturing survey indicated that growth may slow in the second-biggest economy. “Stabilizing prices and managing inflation expectations are critical,” the People’s Bank of China said in a first- quarter monetary policy report published on its website today. Bank reserve requirements have no “absolute ceiling,” the report said, restating a 16 April comment from Governor Zhou Xiaochuan. (Bloomberg)

Portugal: Agrees on USD116bn bailout with wider deficits
Portugal reached an agreement with officials preparing its European Union-led bailout that will provide as much as EUR78bn (USD116bn) in aid and allow more time to reduce the country’s budget deficit. The three-year plan set goals for a budget deficit of 5.9% of gross domestic product this year, 4.5% in 2012 and 3% in 2013, Prime Minister Jose Socrates said in Lisbon today. The government in March targeted a deficit of 4.6% this year, 3% in 2012 and 2% in 2013. (Bloomberg)

20110504 1049 Malaysia Corporate Related News.

 KLCI chart reading : 

side way range bound littel downside biased.

Axiata: Dialog, Firstsource in JV. Sri Lanka-based Dialog Axiata, a subsidiary of Axiata, announced a business process outsourcing (BPO) joint venture with India's Firstsource Solutions. Firstsource Solutions and Dialog will hold a 74% and a 26% stake respectively in Dialog Business Services (DBS). The JV will manage Dialog's customer contact management operations across its mobile, fixed line, pay television and broadband businesses. (Source: Business Times)

EonCap: Restraining order unlikely by Primus as such move may result in legal suit by HLB. Primus Pacific Partners Ltd, which last week lost its legal case against EON Capital Bhd's (EON Cap) directors and shareholders, is unlikely to file a restraining order or injunction to stop the sale of EON Cap's assets to Hong Leong Bank Bhd (HLB) for fear of opening itself up to a legal suit. (Source: The Star)

MSM listing set to be sweetest IPO this year at RM2.5b
The price discovery process for the initial public offering (IPO) of MSN Malaysia Holdings Bhd, the Felda Group controlled sugar refiner, has yielded an indicative price of RM3.50 a share, according to people familiar with the exercise. The indicative price thus values MSM at about RM2.46bn (702:98 million shares), making it the largest IPO on Bursa Malaysia so far this year. The listing exercise is being managed by CIMB Investment Bank Bhd.(Malaysian Reserve)

Motor cover for all motorists with immediate effect
All general insurers must provide motor cover to all motorists including those “displaced vehicles” -- mainly comprising private vehicles exceeding 10 years old, Bank Negara Malaysia said. The central bank’s directive, issued on Tuesday, May 3 and coming into effect immediately, was also to ensure motorcycles currently underwritten by the Malaysian Motor Insurance Pool (MMIP) would be provided motor cover.(Financial Daily)

ADCB eyes 2 times book value for RHB stake
Abu Dhabi Commercial Bank is looking at two times book value, or about RM10 per share, for its 25% stake in RHB Capital Bhd, sources told StarBiz. RHB Capital, which closed at RM8.87 yesterday, is currently trading at about 1.7 times book value. “Looking at the interest so far, they may be able to get that price” a source opined. Of the 12 enquiries made, four or five were “very serious”, having put in their bids already, the sources added.(StarBiz)

KPS gets extension for Syabas deal
Kumpulan Perangsang Selangor Bhd (KPS) has been granted a further 18 months extension to acquire a 15% stake in Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) by Kumpulan Darul Ehsan Bhd (KDEB). In a filing with Bursa Malaysia yesterday, KPS said it had on 29 April entered into a supplemental agreement with KDEB to vary the terms of the share sale agreement. With the new agreement, the expiry of the put option granted to KPS by KDEB pursuant to the acquisition, was extended for a further 18 months Dec 30 Dec 2012 from 30 Jun 2011 .(StarBiz)

KPJ to raise RM500m for projects
KPJ Healthcare Bhd has launched its Islamic commercial papers/Islamic medium term notes (ICP/IMTN) programme to raise RM500m to finance hospital and healthcare projects. Affin Investment Bank Bhd has been appointed by Point Zone Sdn Bhd, wholly owned subsidiary of KPJ as principal adviser and lead arranger for the programme. (StarBiz)

Ramunia proposes capital revamp
Ramunia Holdings Bhd is proposing a capital reconstruction and a rights issue as part of its proposed regularization plan to uplift the company from its PN17 status. In its filing with Bursa Malaysia yesterday, the oil and gas service provider announced it s proposed regularization plan involving a reduction of its entire share premium account and the cancellation of 25 sen in the par value of the existing ordinary share of 50 sen each.(Financial Daily)

Sunway REIT records 3Q pre-tax profit of RM44m
Sunway Real Estate Investement Trust (Sunway REIT) posted a pre-tax profit of RM43.7m and a revenue of RM82.3m for the third quarter ended 31 March 2011. In a filing with Bursa Malaysia yesterday, the company said it registered a gross revenue of RM240.1m and a net property income of RM179m for year to date ended 31 March 2011.(Financial Daily)

TRC clinches RM45m naval contract
TRC Synergy Bhd, via its wholly-owned construction arm Trans Resources Corp Sdn Bhd, has clinched a RM45m construction arm contract from Boustead Penang Ship yard Sdn Bhd, adding its orderbook of RM1.3bn for the next three years. The company, in a statement, said the project entails the design, construction, outfitting, integration, testing and commissioning of submarine hanger and workshop facilities in relation to the Royal Malaysian Navy (RMN) contract of the in service support for two unites Scorpene class submarines.(Malaysian Reserve)

RM300m for green tech ventures
In order to drive the government’s green technology development agenda, Malaysia Debt Ventures Bhd (MDV) plans to disburse RM300m in loans over the next year for both start-ups and existing companies that produce green tech products, said managing director and CEO Md Zubir Ansori Yahaya. Speaking after the launch of MDV’s Green Technology Financing Programme here by Deputy Finance Minister Datuk Donald Lim Siang Chai yesterday, Zubir said three companies had applied for loans amounting to RM60m. (Financial Daily)

20110504 1022 Global Market Related News.

 DJIA chart reading : pullback correction upside biased.

Hang Seng chart reading : side way range bound little downside biased. 

Asian Stocks Decline as Raw Material Producers, Australian Banks Retreat (Source: Bloomberg)
Asian stocks declined, with a regional benchmark index falling for a second day, as raw material producers fell and Westpac Banking Corp. posted earnings that missed analysts’ estimates. BHP Billiton Ltd. (BHP), the world’s biggest mining company and Australia’s second-largest oil and gas producer, slipped 0.7 percent in Sydney as oil and copper futures declined. Woodside Petroleum Ltd. fell 1.7 percent. Westpac Banking Corp., Australia’s No. 2 lender, decreased 1.6 percent after posting first-half earnings. Smaller rival Australia & New Zealand Banking Group Ltd. (ANZ), which reported earnings that missed estimates yesterday, extended its decline for a second day.

IMF Raises Latin America Growth Forecast to 4.7% Amid Overheating Signs (Source: Bloomberg)
Economies in Latin American are showing signs of overheating as growth this year is poised to be faster than previously estimated, the International Monetary Fund said in a report today. Driven by high commodity prices and abundant global liquidity, Latin America and Caribbean economies should expand 4.7 percent this year, up from the 4 percent forecast made in the IMF’s previous regional outlook in October. Peru and Argentina will lead South America’s expansion at 7.5 percent and 6 percent respectively as Brazil, the region’s biggest economy, climbs 4.5 percent. Mexico will grow 4.6 percent, the IMF said.

Orders Placed With U.S. Factories Increased More Than Forecast in March (Source: Bloomberg)
Orders placed with U.S. factories rose more than forecast in March on increasing demand for machinery and computers that points to further gains in business spending. Bookings for manufacturers’ goods climbed 3 percent, a fifth consecutive increase, after a 0.7 percent February advance, the Commerce Department said today in Washington. The report also revised up estimates for capital equipment bookings issued last week. Exports to emerging economies like China, investing in new equipment and the need to increase stockpiles are driving the factory rebound at the forefront of the recovery. Federal Reserve policy makers last week said the expansion was “proceeding at a moderate pace,” boosted by stronger business spending.

U.S. factories hold up despite slower growth
NEW YORK/WASHINGTON, May 2 (Reuters) - Business at U.S. manufacturers grew a bit more slowly for a second straight month in April but their costs rose to the highest level in nearly three years, an industry report showed on Monday.
The economy showed other signs of crawling back to health, including a pickup in spending on construction, albeit too slowly to generate brisk employment gains.

Dollar Index Holds Gains Before U.S. Reports on Jobs, Service Industries (Source: Bloomberg)
The Dollar Index held onto yesterday’s gains on speculation U.S. reports will show employers added jobs for a 15th month and growth in service industries quickened, underpinning the appeal of American assets. The yen weakened versus all of its 16 major counterparts as signs that the U.S. recovery remains on track sapped demand for Japan’s currency as a refuge. The pound traded 0.2 percent from a one-week low versus the dollar before a U.K. report that may show a construction index fell for a third month, supporting the case for the Bank of England to keep interest rates low.

Dollar clambers off 33-month low, stocks fall
LONDON, May 3 (Reuters) - World stocks fell on Tuesday as investors pocketed gains after a five-session winning run, while the dollar edged off a 33-month low, sending crude and copper prices lower.
Equities have been buoyed by robust company earnings in the United States and Dollar clambers off 33-month low, stocks fall commodity prices, driven by ultra-loose U.S. monetary policy and turmoil in oil-producing Middle East and North Africa, could threaten company margins.

China’s Central Bank Signals Tightening May Continue Even as Growth Cools (Source: Bloomberg)
China’s central bank said controlling inflation is its top priority, even after a manufacturing survey indicated that growth may slow in the second-biggest economy. “Stabilizing prices and managing inflation expectations are critical,” the People’s Bank of China said in a first- quarter monetary policy report published on its website today. Bank reserve requirements have no “absolute ceiling,” the report said, restating an April 16 comment from Governor Zhou Xiaochuan.

China manufacturing growth slows in April, hit by tightening
BEIJING, May 1 (Reuters) - China's manufacturing growth slowed in April, a survey showed on Sunday, suggesting that the government's tightening efforts have weighed on the world's second-largest economy more heavily than expected.
The official purchasing managers' index for China fell to 52.9 in April from 53.4 in March, well shy of market forecasts for an increase to 54.0.

China slashes 2011 rail investment plan -media
BEIJING, April 29 (Reuters) - China's railway ministry has decided to cut its planned investment for 2011 to 400 billion yuan from the original 700 billion yuan after its chief was ousted on suspicion of wrongdoing, the Economic Observer, a local newspaper, reported on its website on Friday.
The sharp reduction in railway spending will weigh on China's overall level of investment, the single most important growth engine for the world's second-largest economy.

Subbarao Tweaks India’s Rate-Rise Playbook as Inflation Undermines Bonds (Source: Bloomberg)
The Reserve Bank of India’s decision to double the magnitude of interest-rate increases signals it is ready to step up the battle against inflation even at the risk of damping the nation’s economic growth.

Pound Weakens to Beyond 90 Pence Per Euro For First Time Since March 2010 (Source: Bloomberg)
The pound slumped to weaker than 90 pence per euro for the first time in more than a year. Britain’s currency lost as much as 1.1 percent to 90.016 pence per euro, the first breach of the 90 pence level since March 30, 2010, before trading at 89.9993 as of 3:27 p.m. in London. The pound also fell 1 percent to $1.6482.

Portugal Agrees on Aid Plan With Wider Deficit Targets (Source: Bloomberg)
Portugal reached an agreement with officials preparing its European Union-led bailout that will provide as much as 78 billion euros ($116 billion) in aid and allow more time to reduce the country’s budget deficit.

Russian Inflation Probably Accelerated to Fastest Pace Since October 2009 (Source: Bloomberg)
Russian inflation probably accelerated in April to the fastest pace since October 2009 as higher food prices and gasoline shortages fanned cost pressures.

Greece Should Shun Debt Restructuring, Premier’s Adviser Says (Source: Bloomberg)
Greece doesn’t need to restructure its debt for now and should only consider an extension of its international loans, said Herakles Polemarchakis , an economic adviser to Greek Prime Minister George Papandreou .

FOREX-US dollar index hits 3-yr low as rates outlook weighs
NEW YORK, May 2 (Reuters) - The U.S. dollar declined to a three-year trough against major currencies on Monday and will likely remain under pressure as investors seek higher rates offered abroad and shun the lower yielding greenback.
The Federal Reserve is keeping monetary policy loose while other central banks, such as the European Central Bank and the Bank of England, have already raised rates or are on the verge of doing so. Australia and Canada are expected to tighten lending conditions in the months ahead.

20110504 1019 Global Commodities Related News.

Corn (Source: CME)
US corn futures settled mixed, with nearby futures contracts ending at lowest points since late March, as investment money flowed out of old crop commodity contracts, said John Kleist, senior analyst with ebottrading.com. Funds liquidated long old crop positions, with lack of fresh supportive fundamental news weighing on prices. New crop futures however, held firm, supported by ongoing planting delays. CBOT July corn ended 10 3/4c, or 1.5%, lower at $7.23 3/4 a bushel; Dec corn ended up 1c at $6.62 1/4.

Wheat (Source: CME)
US wheat futures finished mixed, managing to rebound from earlier declines, as poor crop ratings and stalled spring-wheat plantings, provided support. The market came under pressure from broader based selling in commodities amid strength in the US dollar and falling energy and metal futures. However, the threat of smaller production prospects amid declining winter-wheat crop conditions and wet weather idling spring-wheat seedings in the northern Plains provided strength to limit losses, analysts say. CBOT July wheat finished 1 1/2c or 0.2% at $7.93 1/4.

Rice (Source: CME)
US rough rice futures climbed as traders continued to add risk premium to the market in the face of lagging plantings. Excessive rains raise the threat of lost production potential, analysts say. In Arkansas, a key growing state, and in Missouri, where flooding is an issue, traders are bracing for lost acreage. The USDA said Monday that 49% of intended US rice seedings were complete, compared to 77% last year and the 5-year average of 66%. CBOT July rice finished up 1.3% at $15.39/hundredweight.

Commodity market index longs surge in March-CFTC
WASHINGTON, April 28 (Reuters) - Net long index investment in U.S. commodities surged 4.2 percent in March from the previous month, as the red-hot commodity market kept attracting investors.
Overall net long holdings rose to $242.6 billion in March, up $9.9 billion from February, according to the Commodity Futures Trading Commission's monthly report on futures positions connected to index-based investment.

Morgan Stanley Joins Funds Buying Commodities as Goldman Says ‘Sell’ (Source: Bloomberg)
Money managers are making near-record bets on higher commodity prices, aligning themselves with Morgan Stanley after Goldman Sachs Group Inc. said investors should reduce most of their holdings. Funds held a net 1.49 million futures and options in 18 commodities by April 26, 57 percent more than a year earlier, according to U.S. Commodity Futures Trading Commission data compiled by Bloomberg. The Standard & Poor’s GSCI Total Return Index of 24 commodities beat bonds, stocks and the dollar every month since December, the longest in at least 14 years. It rose in April for an eighth month, the best stretch since 2004.

U.S. corn flat on hopes of a pick-up in planting
SYDNEY, May 3 (Reuters) - Chicago corn futures held steady on Tuesday on hopes that improving weather this week will allow a pick-up in the seeding of the U.S. crop which has been hampered by wet weather in the Midwest corn belt.
"It is a weather market, there's no doubt about it," said Jonathan Barratt, chief executive of Sydney-based Commodity Broking Services.

US corn planting 13 pct complete, off average pace
CHICAGO, May 2 (Reuters) - Wet weather brought fieldwork to a standstill in the top corn-producing states east of the Mississippi River last week, pushing overall plantings below trader estimates and the average pace of seedings, U.S. Agriculture Department data showed late on Monday.
USDA put corn plantings at 13 percent complete as of Sunday, off last year's record pace of 66 percent complete and the five-year average of 40 percent.

Heavy rains hit US southern Corn Belt, more coming
CHICAGO, May 2 (Reuters) - Heavy rains fell across the southeast U.S. Corn Belt this weekend with more headed there the next two days, which will raise Midwest river levels to record levels and further stall crop planting, a forecaster said.
The southern portions of Ohio, Indiana and Illinois saw 3.5 to 5 inches (90 to 127 mm) of rain over the weekend. The area could see another couple inches the next two days.

Arabica coffee holds near 34-year peak, sugar lower
LONDON, May 3 (Reuters) - ICE arabica coffee futures were barely changed in early trade on Tuesday but remained within sight of the prior session's 34-year peak while sugar remained on the defensive, weighed by an improving supply outlook.
Arabica coffee futures on ICE were little changed in early trade with the market looking to consolidate just below the prior session's 34-year peak.

Indian white sugar under OGL offered at $670/T-trade
SINGAPORE, May 3 (Reuters) - Indian white sugar to be exported under a government-sanctioned scheme was offered at up to $670 a tonne free on board for prompt shipment, slightly cheaper than Thai sugar, but no deals were reported, dealers said on Tuesday.
India, the world's second-largest producer after Brazil, has approved around 30,000 tonnes of unrestricted sugar exports, kicking off overseas sales of a total 500,000 tonnes under its Open General Licence policy.

India's Oct-May 2 coffee exports jump to 210,826T-Board
MUMBAI, May 3 (Reuters) - India's coffee exports jumped to 210,826 tonnes during October to May 2, from 143,345 tonnes in the year-ago period, data from the Coffee Board showed on Tuesday.
In value terms, the exports surged to $601.17 million as against $306.64 million a year earlier, the board said.

Argentina 11/12 sugar exports seen at 280,000 tonnes-attache
WASHINGTON, May 2 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Argentina: "Argentine sugar exports for marketing year 2011/12 are forecast to increase to 280,000 tonnes (raw value basis). Contacts indicate that the government is expected to closely control sugar exports as it wants to secure a well supplied domestic market.
Production is expected to grow as a result of more cane area and less severe cold weather during harvest. Planted area is estimated to grow significantly as a consequence of good returns and the expansion of the official ethanol mandate under the biofuels law.

Sulawesi April cocoa exports slide, 2011 output seen down
JAKARTA, May 2 (Reuters) - Indonesia's cocoa bean exports from the key-producing island of Sulawesi slumped 76 percent in April from a year ago to 1,570 tonnes, and cocoa output in the region is expected to fall up to 10 percent this year, an association official said on Monday.
The fall in exports last month was due to a rise in the cocoa bean export tax to 15 percent, though exports may pick up again in May as the world's third largest cocoa producer has cut the tax for shipments this month to 10 percent.

Philippines sees record dry season rice harvest
MANILA, May 3 (Reuters) - The Philippines' rice harvest in the current dry crop season may touch record high levels due to early rains in the first quarter, putting less pressure on the government to import more of the staple, Agriculture Secretary Proceso Alcala said.
Manila said last month it expects to surpass its rice production forecast of 7.6 million tonnes in the first half, which covers the dry crop period. It estimates total production this year to reach a record 17.46 million tonnes, more than 10 percent higher than last year's output.

Russia, India Wheat Exports Won't Calm World Markets - Analysts (Source: CME)
Deteriorating prospects for U.S. and European wheat crops mean even the return of exports from Russia and India to world markets this year would be unlikely to lower prices, analysts said. Futures markets for the world's second-most consumed grain have soared to within sight of record highs this year after a succession of natural disasters, including a historic drought in Russia, spurred fears of a shortage of supplies. But now even hopes that India will ship its first wheat abroad in five years and speculation that the Kremlin will lift a ban on Russia's exports as early as this summer look unlikely to calm nervous markets. "We don't expect that the Black Sea region will be able to come into the market in the way it did after the 2008 price rally to supply the world with a significant amount of cheap exports," said London-based Rabobank analyst Erin FitzPatrick. Grain dealers in Russia are starting to move stocks to ports in the hope that the government will allow exports as early as July.
Forecasts for Russia's 2011-12 exports range from around 3 million tons to as high as 10 million tons. Dmitry Rylko, of Russian forecaster Institute for Agricultural Market Studies, said dealers are hoping to free up storage space for the upcoming harvest. But Russian traders said companies are positioning grain in a bid to ship supplies quickly as soon as the ban is lifted. "I would assume the Russians want money quickly so, if they can sell, they will sell as soon as they can," said analyst James Dunsterville of Switzerland-based Agrimoney. In Asia, the U.S. Department of Agriculture's attache predicts that a record wheat crop of 84.2 million tons may prompt New Delhi to allow up to 2 million tons of exports, the first time in five years India would export grain. Still, with food security concerns high on the political agenda in both countries, a sudden surge in shipments looks unlikely.
Both Russia and India are struggling with near double-digit inflation despite holding excess government grain supplies in some areas. And with polls already under way in India and an election set for next year in Moscow, observers say domestic politics is likely to come ahead of international markets. Even exports from these producers are unlikely to make up for a fall in output in the U.S. and Europe. Wheat prices have rallied more than 20% since April 16 due to concerns for harvests in the world's two largest exporters as dryness has stressed crops in the ground and excessive rainfall has hindered planting.

Food Companies Face Test As Higher Prices Reach Shelves (Source: CME)
The appetite shoppers have for higher grocery prices is starting to be put to a serious test, as will be food makers' ability to make the increases stick. Shelf prices for packaged food have taken a meaningful step up in recent weeks, evidence that retailers are taking their turn in passing on the higher prices imposed on them from food companies like General Mills Inc., Kellogg Co. and Kraft Foods Inc. in recent months. But sales volumes are dropping as well, showing that consumers remain sensitive to higher shelf prices. The delicate balance between raising prices and how it affects volumes will take center stage as most large food companies begin to report quarterly earnings this week, including Kellogg on Wednesday and Kraft on Thursday. Retail prices for packaged-food products were up 3.2%, excluding volatile dairy items, for the four weeks ended April 11 versus last year, according to a Stifel Nicolaus & Co. analysis of Information Resources Inc. data, up from 1.9% from the prior four-week period.
The higher prices for packaged foods being reflected at retail are a welcome sign for investors, showing that retailers are both willing to pass on the higher prices to shoppers and that food makers are avoiding chasing market share with deep discounts. The higher prices provide both a boost to sales, as well as protection from higher costs. But the resulting hit to volumes has been noticeable as well, showing the risks in aggressively raising prices to counter higher costs. Sales volume, excluding dairy items, were down 3.8% in the latest four-week period compared with last year. "There's clearly a risk as to what happens to volume," Stifel analyst Christopher Growe said. "To be fair, they have no choice. It's a matter of managing their volumes." Growe estimates that food manufactures will broadly show volume growth for the year due to weak results last year, especially for cereal makers like General Mills and Kellogg.
Combined with cost cuts, he says that price increases averaging 2.9% can offset higher costs for the year for food companies. The food companies will be competing for a narrowing amount of consumer dollars. In addition to facing higher gasoline prices, shoppers are being confronted with higher prices for a bevy of household goods, from diapers and baby wipes, to paper towels and toilet paper. Clorox Co. said it would raise prices on Glad trash bags 9.5%. While shoppers feel reduced buying power, food- and household-product manufacturers hope that the fact prices are up across the board will lessen the impact. The companies also benefit by making products that are less discretionary than, say, clothes or electronics. "Almost everything [consumers] buy is costing them a bit more. It's not helping them feel more generous," Newell Rubbermaid Inc. Chief Executive Mark Ketchum said in an interview last week.
But, "these are products that people eventually need." Executives from Kimberly-Clark Corp., Procter & Gamble Co. and other companies also say that their price increases are less dramatic than those imposed during the last commodity spike in 2008. The economy is much improved since then, with the employment rate down and stock markets up, that may make the increases easier to swallow.

USDA Outsources Research As Seed Industry Seeks Faster Review (Source: CME)
The U.S. Department of Agriculture plans to start outsourcing research used in the review of new plant seeds to outside consultants and biotech companies seeking government approval. The pilot program comes as the seed industry complains the agency is taking too long to approve new products it says are needed at a time of surging crop prices and growing world food demand. Opponents of genetically modified crops, however, contend the USDA shouldn't be looking to streamline a process that already isn't doing enough to detect possible dangers. Under the two-year pilot, companies would agree to pay for a third-party contractor, chosen by the USDA's Animal and Plant Health Inspection Service, to conduct an environmental assessment of new products they want to commercialize. Companies also have the option of submitting their own research, which the USDA would use in developing its own assessment.
"This is very similar to what is done in a number of other agencies that have regulatory responsibility," said U.S. Agriculture Secretary Tom Vilsack in a recent interview. Biotech companies spend heavily on developing new seeds that can yield larger crops by making a plant resistant to a specific pest or tolerant of a certain herbicide. Before going to market, the USDA reviews a product to ensure it won't itself become a problem that potentially contaminates other fields or causes additional environmental problems. The U.S. Food and Drug Administration and U.S. Environmental Protection Agency also look at issues surrounding new seed proposals. The USDA pilot program could speed up the review of genetically modified crops.
It now takes seeds nearly seven times as long to win federal approval than it did when the first product was introduced in 1996, said Karen Batra, spokeswoman for the Biotechnology Industry Organization, a trade group that includes companies such as DuPont Co., Syngenta AG and Monsanto Co., as well as academic institutions. "Right now we've got 20-some products that are in the queue, waiting to be looked at," she said. "Some of these have been there for years." Yet opponents of genetically modified crops feel not enough work is being done to protect the public. The issue for the USDA should not be the time it takes to assess a proposed new crop, but the quality of that review, said Bill Freese, science-policy analyst for The Center For Food Safety, a nonprofit environmental group critical of genetically modified products.

Coffee Rises on Rain Threat to Colombia Crop; Sugar Gains; Cocoa Declines (Source: Bloomberg)
Arabica coffee rose to the highest price in almost 14 years as adverse weather threatened crops in Colombia, the world’s biggest producer after Brazil. Sugar gained, while cocoa declined. Colombia’s Agriculture Ministry on May 1 said a lack of sunshine will hurt coffee crops over the next few months. Plantations also have been damaged by rain and landslides and weather experts predict the worse is “yet to come,” Hamburg- based broker Eugen Atte GmbH said April 28 in a report. Prices have more than doubled in the past year. “With concern of excessive rains in Colombia and steady demand, coffee will continue to go even higher,” said Sterling Smith, an analyst at Country Hedging Inc. in St. Paul, Minnesota. “The scenario is very bullish.”

Oil Heads for Longest Losing Streak Since March as Crude Stockpiles Rise (Source: Bloomberg)
Oil declined for a third day in New York, matching the longest losing streak since March, as U.S. crude stockpiles increased and equities slipped, leading to concern demand for fuel will fall.

Oil fell to a two-week low as the Standard & Poor’s 500 Index dropped and on projections that a government report will show U.S. crude inventories climbed. (Source: Bloomberg)
Crude slipped 2.2 percent as the S&P 500 declined for a second day. U.S. oil supplies rose to a six-month high last week, according to a Bloomberg News survey before an Energy Department report tomorrow. Futures touched a 2 1/2-year high yesterday as investors assessed the impact of the May 1 killing of Osama bin Laden.

Silver Has Biggest Two-Day Drop Since 2008 on Margin Increase; Gold Falls (Source: Bloomberg)
Silver futures tumbled, capping the biggest two-day slide since October 2008, after margin requirements on the Comex increased for the second time in less than a week. Gold fell the most since mid-March. The minimum amount of cash that must be deposited when borrowing from brokers to trade silver futures will rise to $16,200 per contract at the close of business today from $14,513, CME Group Ltd., Comex’s owner, said yesterday. A year ago, the margin was $4,250. The metal, which tumbled 12 percent in two days, has doubled in the past 12 months.

US panel oks steep duties on Chinese aluminum goods
WASHINGTON, April 28 (Reuters) - A U.S. trade panel gave final approval on Thursday to duties ranging up to more than 400 percent on around $500 million of aluminum products from China used in the car and construction industry.
The move is the latest sign of trade friction between the world's two largest economies, but has been in the works for over a year.

Venezuela aluminum smelter in tough times-state daily
CARACAS, April 29 (Reuters) - Venezuela's government-run aluminum smelter Alcasa is in a "state of emergency" operationally and financially, an official newspaper said on Friday.
The South American country is an important global aluminum producer, but the industry has been plagued by labor disputes, outdated equipment and low investment over the last few years. Months of power rationing last year also hit the sector hard.

Zambia copper output at 2 mln t by 2015
LUSAKA, April 30 (Reuters) - Copper output in Zambia, Africa's top producer of the metal, will rise to 2 million tonnes by 2015 from around 900,000 tonnes this year as new mines open and others are expanded, the country's finance minister said on Saturday.
Situmbeko Musokotwane told Reuters new mines and expansion projects by Canada's First Quantum Minerals , Brazil's Vale , Equinox  , London-listed Vedanta  and Glencore International AG would boost copper production.

Shanghai bonded copper stocks seen falling on investors - trade
HONG KONG, April 28 (Reuters) - Investors are selling more Shanghai bonded copper stocks into the local market, which could dampen domestic prices in the near term, but also help re-open the spot import arbitrage window in the coming months, trading sources said on Thursday.
The world's top copper buyer, China has bought less from the international spot market this year since bonded stocks more than doubled from December, driving down quarterly imports by 21 percent.

Chile March copper output down 0.1 pct yr/yr
SANTIAGO, April 28 (Reuters) - Chile's copper output  fell 0.1 percent in March compared with a year earlier to 450,507 tonnes, the National Statistics Institute (INE) said on Thursday.
Chile, which holds by far the world's top copper reserves and is the globe's No.1 producer, is expected to steadily increase output in the next two years with new mine projects and upgrades

China needs to tackle growing steel supply glut - CISA
BEIJING, April 29 (Reuters) - Controlling excess capacity and output remains one of the big tasks facing China's sprawling steel sector this year, with demand growth expected to slow to 2.6-4.6 percent per year from 2011 to 2015, the China Iron & Steel Association (CISA) said on Friday.
Steel output growth reached 9.3 percent in 2010, but CISA's vice-secretary general, Zhang Changfu, told a news conference that China could no longer rely on rapid increases in demand and had to put a stop to rampant capacity expansion.

Indonesia's Timah reports tin sales in Q1 down 18 pct y/y
JAKARTA, April 29 (Reuters) - Tin sales at Indonesian producer Timah  fell 18 percent to 7,992 tonnes in the first quarter of 2011 compared the same period last year, the company said on Friday.  The firm posted net profit for the first quarter at 354.7 billion rupiah ($41.3 million), up from a 141.8 billion rupiah during the same period last year. 

METALS-Copper falls on China, U.S. data, dollar
LONDON, May 3 (Reuters) - Copper fell to its lowest since mid-March on Tuesday as manufacturing growth in big economies slowed and inventories of the metal rose, while key data was expected to give indications on the world's economic health.
Copper  for three-month delivery on the London Metal Exchange (LME) fell to a low of $9,194.75 a tonne compared with a close of $9,320 at the close on Thursday before a long weekend that ended on Monday. It was at $9,251 in official rings.

Gold steadies after bin Laden; silver stabilises
LONDON, May 3 (Reuters) - Gold slipped on Tuesday from  record highs above $1,570 an ounce the previous day, as the dollar rose and as safe-haven buying of the metal lost some momentum following the death of al Qaeda leader Osama bin Laden.
Spot silver  also came under selling pressure after hitting a near two-week low of $42.58 an ounce on Monday, when the precious industrial metal saw its biggest one-day drop in 29 months.

20110504 1017 Soy Oil & Palm Oil Related News.

 Soy Oil chart reading : side way range bound little downside biased.

Soybeans (Source: CME)
US soybean futures tumbled, dropping more than 2% on broad-based commodity selling. Market was caught up in commodity wide long liquidation, with investors reducing risk exposure, reflective of the fall in energy and metal futures, said Mike Zuzolo, president Global Commodity Analytics. Forecasts calling for soggy fields of the eastern Midwest and Delta to remain wet, added to defensive tone. The longer flooded fields keep farmers from seeding corn, it increases potential for farmers to switch some intended corn acres to soybeans, Zuzolo adds. CBOT July soybeans ended 29 1/4c or 2.1% lower at $13.63 3/4 a bushel.

Soybean Meal/Oil (Source: CME)
US soy product futures tumble in step with declines in soybeans. Soyoil futures led the declines in the products, garnering additional pressure from a slide in crude oil futures and weakness in world vegoil markets, analysts say. CBOT July soyoil futures end 0.89c or 1.5% lower at 57.71 cents per pound, and July soymeal settle $7.40 or 2% lower at $354.90 a short ton.

Palm almost flat as output ramp up erases earlier gains
KUALA LUMPUR, May 3 (Reuters) - Malaysian palm oil futures ended almost flat on Tuesday after a long weekend holiday as gains from a rebound in exports last month were erased by prospects of higher output.
 "There is some support from the export data but there has to be a significant flow of orders, strong external markets to make palm oil an explosive story," said a trader with a foreign commodities brokerage.

Ukraine soybean output seen up in 2011/12-attache
WASHINGTON, May 2 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Ukraine: "Soybean production is expected to increase in 2011/12 due to supportive market trends and an assumption of unrestricted exports. Domestic production of soy is being driven by growing domestic demand for animal feed. Soy imports are shrinking.
Soy feed products that contain genetically modified an herbicide resistant trait, are temporary allowed to be used for animal feed purposes in Ukraine. However, neither cultivation nor import of soybean seeds for planting is permitted.

Brazil soy crop raised to record 72.6 mln T-Celeres
SAO PAULO, May 2 (Reuters) - Brazil's 2010/11 soybean crop forecast was raised to a record 72.55 million tonnes, up from 70.56 million tonnes seen in early April, grains analysts Celeres said on Monday.
In its tenth report on the current crop, Celeres said average Brazil yields should reach 3.019 tonnes per hectare, up from 2.936 tonnes per hectare seen in April.