Thursday, June 9, 2011

20110609 0944 Global Market Related News.

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

Asian Stocks Decline on U.S. Economic Slowdown (Source: Bloomberg)
Asian stocks fell, dragging the regional benchmark index to its lowest level in two weeks, after the Federal Reserve said the economy is slowing in some areas of the U.S., boosting concern the global recovery may falter. Canon Inc. (7751), the world’s biggest camera maker, lost 0.7 percent in Tokyo. Toyota Motor Corp. (7203), the world’s largest carmaker that gets 28 percent of sales in North America, dropped 0.6 percent. Newcrest Mining Ltd. (NCM), Australia’s No. 1 gold producer, declined 1.4 percent after cutting its full-year output forecast for the third time this year.

Stocks, dollar fall as Bernanke fails to inspire
SINGAPORE, June 8 (Reuters) - Asian stocks fell on Wednesday and the dollar wavered after uninspiring comments from U.S. Federal Reserve Chairman Ben Bernanke added to worries about the slowing global economy.
"We don't expect much in the near term without fresh developments," she said. "There is concern over what's going to be happening with global growth. Double-dip (recession) worries will come back."

U.S. Economy ’Steady’ in Most Areas: Fed (Source: Bloomberg)
The Federal Reserve said the economy expanded at a “steady pace” in most of the U.S. while slowing in four of 12 regions as consumers contended with higher food and fuel prices and shortages of parts reduced auto production.

U.S. Needs Austerity to Reset Economy, Pimco Official Says: Tom Keene (Source: Bloomberg)
The U.S. should stop kicking “the can down the road” and implement fiscal austerity measures so the economy can fully recover from the financial crisis, according to Pacific Investment Management Co.’s Neel Kashkari. The government should abandon stimulative measures and focus on economic adjustments in order to allow for long-term growth, Kashkari, managing director and head of new investment at Newport Beach, California-based Pimco, said in an interview on Bloomberg Television’s “Midday Surveillance” with Tom Keene.

U.S. Policy Prompts Dollar Questions: Gross (Source: Bloomberg)
Pacific Investment Management Co.’s Bill Gross said foreigners are questioning the dollar’s role as the world’s reserve currency because of U.S. policies that keep borrowing rates low to reduce the nation’s debt burden. Gross, manager of world’s biggest mutual fund, reiterated that investors should avoid U.S. Treasuries because they’re not being compensated for the risk of inflation. Investors should buy debt of nations that maintain better fiscal and monetary policies such as Canada, Germany and Mexico, he said.

U.S. Stocks Decline, Giving S&P 500 Its Longest Losing Streak Since 2009 (Source: Bloomberg)
U.S. stocks retreated, sending the Standard & Poor’s 500 Index to the longest losing streak since February 2009, as raw-material and financial shares slumped amid growing concern the economy is slowing. Visa Inc. (V) and MasterCard Inc. (MA) fell at least 1.5 percent after the U.S. Senate rejected a six-month delay of a Federal Reserve rule capping debit-card swipe fees set by the companies. Ciena Corp. (CIEN), the maker of network gear for the biggest U.S. phone companies, tumbled 16 percent after reporting a wider- than-estimated loss. Gap Inc. (GPS) slumped 2.4 percent after Barclays Plc cut its recommendation for the largest U.S. apparel chain.

Bernanke glum on growth but gives no stimulus hints
ATLANTA, June 7 (Reuters) - Federal Reserve Chairman Ben Bernanke on Tuesday acknowledged the economy has slowed but offered no hint the U.S. central bank is considering any more stimulus to accelerate growth.
He also warned members of Congress who might be planning aggressive budget cuts that they have the potential to derail the recovery if cuts in government spending take hold too soon.

Bernanke Says ‘Frustratingly Slow’ Recovery Warrants Accommodative Policy (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke said the “frustratingly slow” U.S. recovery warrants sustained monetary stimulus while predicting that growth will gain speed in the second half of the year. “The economy is still producing at levels well below its potential; consequently, accommodative monetary policies are still needed,” Bernanke said yesterday in a speech in Atlanta. At the same time, the Fed “will take whatever actions are necessary to keep inflation well controlled,” he said.

Obama Team Eyes Payroll Tax Break for Employers (Source: Bloomberg)
President Barack Obama’s advisers have discussed seeking a temporary cut in the payroll taxes businesses pay on wages amid economic reports suggesting the recovery is slowing, according to people familiar with the matter. The idea, in preliminary stages of discussion, is among several being debated in the administration with the aim of boosting hiring, the people said on condition of anonymity to discuss internal deliberations. The unemployment rate in May rose to 9.1 percent, the highest level this year, and the economy is a main focus of the political discussion in Washington.

China floods kill 24, force 100,000 to evacuate
BEIJING, June 8 (Reuters) - Heavy rain drenched a swathe of what had been drought-gripped southern and eastern China, killing 24 people and forcing more than 100,000 to evacuate, state media reported on Wednesday.
The drought has damaged crops and exacerbated a power shortage by cutting power generation from dams, adding a slight bump to near three-year high consumer inflation.

Japan Economy Contracted Less Than Estimated (Source: Bloomberg)
Japan’s economy contracted less than the government initially estimated in the first quarter, a sign the economic slump caused by the March 11 earthquake and tsunami wasn’t as deep as expected. Gross domestic product shrank at an annualized 3.5 percent rate in the three months ended March 31, less than the 3.7 percent contraction reported last month, the Cabinet Office said today in Tokyo. The median forecast of 23 economists surveyed by Bloomberg News was for a 3 percent decrease.

Japanese Stocks Drop for First Time in Three Days on U.S. Slowdown Concern (Source: Bloomberg)
Japanese stocks declined for the first time in three days after the Federal Reserve said the U.S. economy is weakening in some regions, sparking concern that the global recovery is slowing. Canon Inc. (7751), the world’s biggest camera maker, sank 1.2 percent. Toyota Motor Corp. (7203), an automaker that earns about 70 percent of its revenue abroad, slid 1 percent after the yen strengthened, cutting the earnings outlook for the exporter. Tokyo Electric Power Co., owner of the nuclear power plant crippled by March’s earthquake and tsunami, dropped 11 percent.

South Korea to Weigh Rate Increase as Household Debt Poses Risk for Growth (Source: Bloomberg)
The Bank of Korea will weigh an interest-rate increase tomorrow as swelling household debt and weakness in the global economy pose threats to growth.

Euro Rises on Prospects ECB’s Trichet Will Signal Rate Rise for Next Month (Source: Bloomberg)
The euro traded 0.6 percent from a one-month high versus the dollar on speculation European Central Bank President Jean-Claude Trichet will today signal policy makers are likely to raise interest rates next month.

Pound Weakens After Moody’s Says U.K.’s Aaa Credit Rating Might Be at Risk (Source: Bloomberg)
The pound weakened against the dollar and the yen after Moody’s Investors Service said the U.K.’s Aaa credit rating may be at risk should the government miss its debt-reduction targets amid slowing growth. Sterling fell to the weakest in more than three weeks versus the yen even as Moody’s said the nation’s sovereign ranking is “stable.” The European Commission said yesterday that the U.K. government faces a “challenge” to implement its planned budget-deficit reduction program and some of its growth forecasts are too optimistic. Data today showed U.K. shop-price inflation decelerated in May.

King’s Position on Record-Low Rate Boosted by Fisher Caution on Recovery (Source: Bloomberg)
Bank of England Governor Mervyn King’s push to keep interest rates at a record low may have strengthened this month as his top official for financial markets leads a defense against advocates for an increase. Paul Fisher said last week he wants to be sure the economy is over its “soft patch” before the key interest rate is increased and that officials who share his view should be more vocal. The King and Fisher faction of the divided Monetary Policy Committee will probably see their argument win again today, with all 55 economists in a Bloomberg News survey forecasting the bank will leave the benchmark at 0.5 percent.

N.Z. Keeps Key Rate at 2.5% to Boost Recovery (Source: Bloomberg)
New Zealand’s central bank kept its benchmark interest rate at a record low today, while signaling it will need to boost borrowing costs to contain prices as the nation recovers from its deadliest earthquake in 80 years. “As gross domestic product growth picks up, underlying inflation is expected to rise,” Governor Alan Bollard said in a statement today in Wellington after leaving the benchmark at 2.5 percent. “A gradual increase in the official cash rate over the next two years will be required to offset this.”

Brazil Raises Key Interest Rate to 12.25% After Inflation Exceeds Target (Source: Bloomberg)
Brazil’s central bank raised its benchmark interest rate for a fourth straight meeting today after consumer prices exceeded the upper limit of its target range for the first time since 2005.

FOREX-Dlr hovers near 1-mth lows vs yen, euro capped
LONDON, June 8 (Reuters) - The dollar dropped to a one-month low against the yen on Wednesday while commodity currencies fell as investors pared holdings in riskier assets, driven by fears that a slow U.S. economic recovery could drag on global growth.
The yen rose broadly, pushing down the dollar to 79.75 yen -- its lowest since May 5 -- after a series of stop-loss orders were triggered as the U.S. currency failed to hold support around the 80 yen level.

20110609 0942 Global Commodities Related News.

Corn (Source: CME)
US corn futures rise sharply on increasing demand from end-users, with ethanol producers bidding up prices to secure grain while increasing output 0.7% last week. Meanwhile, market participants predict the USDA will cut its already-low inventory forecasts in a monthly crop report Thursday amid strong demand. Some expect the agency will also reduce its outlook for the next harvest due to planting delays this spring. That could keep inventories tight through next year. CBOT July corn climbs 27 1/2c to $7.64/bushel.

Wheat (Source: CME)
US wheat futures close stronger on spillover support from a 3.7% rally in the corn market. Corn's gains lift wheat as market participants expect livestock producers will increasingly feed wheat to animals and cut back on corn feedings. Corn closes above wheat in a reversal of their typical roles as traders are nervous about shrinking corn supplies and less concerned about looser supplies of feed wheat. CBOT July wheat rises 14 1/4c to $7.48/bushel while KCBT July gains 10 12/c to $8.85 and MGE July surges 36 3/4c to $10.21 1/2.

Rice (Source: CME)
US rice futures edge higher, taking their cue from rallies in the wheat and corn markets. Rice looks to wheat for direction as both grains are global food staples. Traders also worry about the potential for declining grain inventories ahead of a monthly USDA supply-and-demand report. CBOT July rice rises 1/2c to $14.77 1/2 per hundredweight.

U.S. corn rises for 2nd day, wheat firm after selloff
SINGAPORE, June 8 (Reuters) - Chicago corn ticked higher on Wednesday, rising for a second straight day as investors took positions ahead of a key U.S. government report which is expected to show tight old-crop supplies amid relentless demand from ethanol and feed producers.
"The supportive factor for corn is tightness in old-crop supply and also the expectation that the USDA may trim the 2010/11 corn carryout figures because high prices have been insufficient in curbing demand," said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia.

Russia wheat pegged at $295/T FOB, exports 10 mln t
GELENDZHIK, Russia, June 8 (Reuters) - Export prices for Russian wheat stood at $295 per tonne FOB basis in the key Black Sea port of Novorossiisk, and should climb only slightly when exports re-open in July, a top analyst said on Wednesday.
Dmitry Rylko, general director of the Institute for Agricultural Market studies (IKAR) told a Grain Union conference in the Black Sea resort of Gelendzhik he saw FOB prices at $300 per tonne by Aug. 1.

Drought To Make French Soft Wheat Non-EU Exports Fall By Half (Source: CME)
The driest spring on record in France will lead to a decline of the country's soft wheat exports outside the European Union by more than half on the year, in the year starting in July. France AgriMer, the French government agency for agriculture and fisheries, expects that given the forecast for domestic demand and exports within the European Union, exports to non-EU countries is likely to fall to six million metric tons in the period between July 2011 and June 2012, from an expected record 13.2 million over the previous 12 months. The drought in the first half of 2011 will cause French soft wheat production to fall to 31 million metric tons in 2011-2012 from an expected 35.6 million tons in the 2010-2011. Soft wheat production would be the lowest since 2007-2008, France AgriMer said. The overall output will still be above the previous drought in 2003 when soft wheat fell to 29.1 million tons.
"Let's stop saying this will be a black year," said Xavier Rousselin, the head of France AgriMer's arable crops unit, adding the past few years were "outstanding." "A few years ago, we would have been glad to get such an output," he said. Rainfall during the coming months may offset somewhat the negative forecast, although damage is already beyond repair in some areas, Rousselin said. According to the French government weather agency Meteo France, the 2011 spring was both the warmest and the driest on record, with a higher average temperature and less rain than in 1976, the previous most severe drought since the agency started compiling the data. Exports to non-EU countries will be much lower than in 2010-2011 as French producers will first provide domestic needs and a strong demand from neighboring countries in the European Union.
The domestic demand for soft wheat is likely to rise as food companies will substitute barley --which output is likely to fall to 8.7 million tons-- with soft wheat, Rousselin said. France is likely to export eight million tons within the European Union in 2011-2012, up from 6.4 million in 2010-2011.

U.S. Corn-Crop Delays Signal Tightest World Supply Since 1974, Price Gains (Source: Bloomberg)
Wet weather that delayed corn planting in the U.S., the world’s largest exporter, may send global inventories to their lowest in 37 years, signaling higher costs for consumers and livestock producers. More than one-third of Midwest fields were planted after the mid-May target for optimal growth because of excessive rain, and Ohio farmers as of June 5 were the furthest behind since 1989, with 58 percent sown, government data show. Goldman Sachs Group Inc. said June 6 that the disruptions increase the “potential for a shortfall.”

Corn Advances for Third Day, Maintaining Premium to Wheat in Chicago Trade (Source: Bloomberg)
Wheat for July delivery gained 0.6 percent to $7.525 a bushel, rising for a second day, while corn increased 0.5 percent to $7.675 a bushel, climbing for a third day.

Reuters Summit-Natixis sees possible bubbles in commodities
LONDON, June 7 (Reuters) - The dislocation between loose U.S. monetary policy and rising rates in emerging nations will lead to more volatility and even bubbles in commodities, particularly in precious metals, says French investment bank Natixis.
The excess liquidity coursing through the financial markets that developed economy central banks such as the U.S. Federal Reserve or the European Central Bank pumped out during the global financial crisis has been a major driver in the rise in commodity prices.

Kenya delays resumption of coffee sales - officials
NAIROBI, June 8 (Reuters) - Kenya has delayed the resumption of its weekly coffee auction that had been set for June 7 after a cold spell affected drying of beans for milling, a senior exchange official said on Wednesday.
"Unfortunately there has been cold spell that has affected the drying of coffee parchment for milling. We now expect the auction to resume on June 28 and not June 7 as earlier planned," the official at the Nairobi Coffee Exchange told Reuters.

Vietnam robusta coffee trades at first premium since May 2010
SINGAPORE, June 8 (Reuters) - Vietnam's robusta coffee beans changed hands at premiums for the first time since at least May 2010 as stocks tightened ahead of the next harvest and after strong exports earlier this year, dealers said on Wednesday.
Vietnam's May coffee exports rose an estimated 10.6 percent from the same month in 2010 to 110,000 tonnes, or 1.83 million bags, exceeding market expectations, the government said.

Brazil to suffer ethanol fuel shortages for years
SAO PAULO, June 7 (Reuters) - Brazil, the world's largest grower of the most promising biofuel feedstock of the future -- sugarcane -- will suffer shortages of fuel ethanol for several years to come due to the lack of investment in new planting.
But regulatory change means uncertainty for the private sector, which is unwilling to plant more cane to meet both global demand for sugar and domestic demand for ethanol. As if matters weren't already bad after investments in new capacity stalled from the 2008 financial crisis, which pushed many heavily leveraged mills into bankruptcy.

Oil Gains for Third Day as OPEC Fails to Agree Quotas; U.S. Supplies Drop (Source: Bloomberg)
Oil rose for a third day in New York after OPEC failed to reach an agreement on production targets for the first time in at least 20 years and U.S. crude inventories fell more than analysts forecast. Futures gained as much as 0.7 percent after climbing 1.7 percent yesterday. The Organization of Petroleum Exporting Countries will maintain its current output for now, said Mohammad Aliabadi, the acting Iranian oil minister and OPEC president. A Gulf delegate said June 7 that the group would increase production targets. A U.S. government report showed crude supplies dropped the most since December.

OPEC Can’t Find Consensus on Oil Output (Source: Bloomberg)
OPEC failed to agree on crude production for the first time in at least 20 years after six countries opposed a Saudi Arabian push to increase supply as oil trades above $100 a barrel.

Gold Falls for Second Day on Bets Dollar Will Rebound on Bernanke Outlook (Source: Bloomberg)
Gold futures fell for the second straight day on speculation that the Federal Reserve won’t ease U.S. monetary policy further, boosting the dollar and eroding the appeal of the precious metal as an alternative asset. The greenback rose from a one-month low against a basket of six major currencies. Yesterday, Fed Chairman Ben S. Bernanke signaled that there won’t be a third round of so-called quantitative easing, and gold dropped 0.2 percent.

METALS-Copper falls on economic concerns, dollar
LONDON, June 8 (Reuters) - Copper fell more than 1 percent on Wednesday as the dollar rebounded from one-month lows and a bleak Federal Reserve assessment of the U.S. economy depressed market sentiment.
Federal Reserve Chairman Ben Bernanke late on Tuesday acknowledged the economy had slowed but offered no hint the U.S. central bank is considering any more stimulus to accelerate growth.

PRECIOUS-Gold slips as Bernanke dampens QE3 expectations
LONDON, June 8 (Reuters) - Gold fell on Wednesday after Federal Reserve Chairman Ben Bernanke offered no hints of further U.S. monetary easing in a speech a day earlier, taking pressure off the dollar.
Bernanke acknowledged the U.S. economy has slowed but offered no hint that the central bank is considering any more stimulus to accelerate growth.

Nickel Pig Iron Output in China Seen Surging in Challenge to Refined Metal (Source: Bloomberg)
Nickel pig iron output in China, the world’s largest metals user, may surge 50 percent this year, possibly curbing demand for the refined product and hurting prices that have lagged behind all other base metals in London.

Copper to Surge to Record by Year’s End on Chinese Demand, Barclays Says (Source: Bloomberg)
Copper prices will rise to a record $12,000 a metric ton by the end of the year as China’s imports rebound, said Nicholas Snowdon, an analyst at Barclays Capital in London. “The Chinese market is awakening from the destocking cycle that lasted nine months,” Snowdon said today at a Metal Bulletin conference in New York. “Their backyard inventories have been completely depleted. By July, we will begin to see a steady increase in imports.”

Rio Tinto remains cautious on aluminum outlook
NEW YORK, June 7 (Reuters) - Rio Tinto Alcan   sees strong demand for aluminum in all sectors, but remains cautious about its medium-term outlook because of the high level of the inventories in London Metal Exchange warehouses, said chief executive Jacynthe Cote on Tuesday.
Concerns about European debt, U.S. unemployment, Chinese inflation, and the pace of the recovery in Japan also cloud the near-term view of aluminum demand, the executive said.

Novelis bullish on aluminum prospects
NEW YORK, June 7 (Reuters) - Novelis, which recycles cans to make aluminum products, expects earnings to almost double in the next four years as demand increases, especially from automakers, its chief executive said on Tuesday.
Philip Martens also expects the price of aluminum to remain around $2,600 to $2,700 per tonne for the foreseeable future, even as the global economy shows signs of strengthening.

Alcoa sees much scope for aluminum to replace copper
NEW YORK, June 7 (Reuters) - Alcoa Inc.  Chief Executive Klaus Kleinfeld said on Tuesday that no one is happier to see copper prices climbing than he is, because that meant substitutions into aluminum would increase.
Speaking at The Aluminum Summit hosted by AMM, the head of the largest U.S. aluminum producer said: "I'm happy that the copper price has gone up. Every time it rises, those people who use copper are calling us, because they want to replace copper with aluminum."

China daily crude steel output falls 3.46 pct over May 21-31
BEIJING, June 8 (Reuters) - Daily output of crude steel in China in the last 11 days of May fell 3.46 percent compared with the previous 10 days, reaching 1.915 million tonnes, according to data issued on Wednesday by the China Iron and Steel Association.
The figure would amount to almost 699 million tonnes if calculated on an annualised basis, compared to 627 million tonnes of output for all of last year.

Indonesia May tin exports fall 4 pct due to stockpiling
JAKARTA, June 8 (Reuters) - Indonesia's refined tin exports fell 4 percent in May from the same month last year, despite rising production as exporters kept stocks in warehouses on hopes of improving prices, an official at the trade ministry said on Wednesday.
Indonesia, the world's top tin exporter, shipped 7,013.28 tonnes of refined tin last month, compared to 7,332.46 tonnes in the year-ago period, trade ministry data showed.

China to create rare earth monopoly in Inner Mongolia
BEIJING, June 8 (Reuters) - China will shut down 35 rare earth producers in the region of Inner Mongolia and entrust all exploration, production and processing of the metals to a single company, the Baotou Steel Rare Earth Group , the Ministry of Industry and Information Technology said.
The restructuring of the sector will be completed by the end of this month, according to a statement on the ministry's website.

20110609 0941 Soy Oil & Palm Oil Related News.

Soy Oil chart reading : side way range bound little upside biased
Soybeans (Source: CME)
US soybean futures follow corn's lead, with the uncertainty of acreage and production in the face of tight supplies coupled with spillover strength from rebounding crude-oil futures underpinning prices. The influence of corn sparked buying across the grain and soy complex as market participants don't expect much in the way of changes out of the USDA's monthly report Thursday, with the average guess for small increases in carryout. CBOT July soybeans end up 0.5% at $14.01 1/2 a bushel.

Soybean Meal/Oil (Source: CME)
US soymeal futures rallied with soybeans, garnering additional support from concerns about tightening supplies amid reduced transportation capabilities the possible closure of some soy processing plants due to Missouri River flooding, analysts said. CBOT July soymeal ended up 1.2% at $372.80/short ton, and July soyoil settled up 0.02% at 57.94 cents/pound.

Palm oil at 3-wk low on high stocks, markets
KUALA LUMPUR, June 8 (Reuters) - Malaysian palm oil dropped to a three-week low on Wednesday as investors adjusted positions on weak technicals, lacklustre external markets and expectations of high stocks.
"External markets are not giving much direction and palm oil is getting weighed down by the high stocks," said a dealer with a local commodities brokerage.

Wednesday, June 8, 2011

20110608 1815 FCPO EOD Daily Chart Study.

FCPO closed : 3316, changed : -38 points, volume : lower.
Bollinger band reading : correction range bound little upside biased.
MACD Histrogram : fall lower, seller testing market.
Support : 3300, 3270, 3250, 3200 level.
Resistance : 3350, 3420, 3450, 3470 level.
Comment :
3 week low FCPO closed recorded loss for the third day with lower volume changed hand as higher stock level still haunt market while soy oil overnight closed weaker and currently trading lower.
Technical reading suggesting a correction range bound little upside biased market development testing support and resistance level with MACD indicator having negative cross down today.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110608 1742 FKLI EOD Daily Chart Study.

FKLI closed : 1549 changed : -6.5 points, volume : higher.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakening, buyer closing position.
Support : 1540, 1530, 1515, 1500 level.
Resistance : 1550, 1565, 1580, 1590, 1600 level.
Comment :
FKLI closed recorded loss with increasing volume participation doing 2.5 points discount compare to cash market that closed nearly unchanged and regional(Asia & European) trading mostly lower while overnight U.S. market lower for the 5 consecutive day.
U.S. Federal Reserve official statement on a slow U.S. economy recovery despite stimulus measure been implemented plus no plan to start new stimulus plan raised investors worries to a new level.
Daily chart formed a down doji bar candle with longer lower shadow closed nearer to middle Bollinger band level after market opened weaker, edge up 1 point higher and slide downwards lower before recover slightly but failed to closed above support level.
Still in correction range bound upside biased market development possibly testing lower supported level near middle Bollinger band.
When to buy : buy at support or weakness with larger quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110608 1532 Global Market & Commodities Related News.

Asia stocks, dollar fall as Bernanke fails to inspire
SINGAPORE, June 8 (Reuters) - Asian stocks fell on Wednesday and the dollar sagged after uninspiring comments from U.S. Federal Reserve Chairman Ben Bernanke added to worries about the slowing global economy.
"When you see the weaker U.S. dollar, people do get concerned about the global growth story," said Justin Gallagher, head of sales trading at RBS Australia in Melbourne.

U.S. corn rises for 2nd day, wheat firm after selloff
SINGAPORE, June 8 (Reuters) - Chicago corn ticked higher on Wednesday, rising for a second straight day as investors took positions ahead of a key U.S. government report which is expected to show tight old-crop supplies amid relentless demand from ethanol and feed producers.
"The supportive factor for corn is tightness in old-crop supply and also the expectation that the USDA may trim the 2010/11 corn carryout figures because high prices have been insufficient in curbing demand," said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia.

Vietnam robusta coffee trades at first premium since May 2010
SINGAPORE, June 8 (Reuters) - Vietnam's robusta coffee beans changed hands at premiums for the first time since at least May 2010 as stocks tightened ahead of the next harvest and after strong exports earlier this year, dealers said on Wednesday.
Robusta grade 2, 5 percent black and broken beans, were traded at premiums of between $20 and $60 to London's September contract . Beans from the world's largest robusta producer stood at a discount of $20 last week.

Brazil 12-month coffee receipts at historic high
BRASILIA, June 7 (Reuters) - World top coffee producer Brazil earned more from shipments of the beans in the last 12 months than at any time in history, the exporter association Cecafe said on Tuesday.
Earnings in the 12 months through May were the highest in history with the 34.4 million bags shipped bringing in $7.02 billion.

Ivory Coast cocoa output to hit 1.3 mln T -ICCO
YAOUNDE, June 7 (Reuters) - World top cocoa grower Ivory Coast will boost output to 1.3 million tonnes during the 2010-11 season, while No. 2 grower Ghana will produce a record 960,000 tonnes, the International Cocoa Organization said on Tuesday.
The outlook reinforced hopes a bloody power struggle in Ivory Coast that only eased in April would spare the West African state's main industry. It also bolstered Ghana's own projections for a bumper crop this year.

Oil lower ahead of OPEC meeting, dollar eyed
SINGAPORE, June 8 (Reuters) - Brent oil fell on Wednesday, hovering around $116 a barrel, ahead of an OPEC meeting where members are expected to agree to raise global supplies to rein in high prices that have weighed on growth and stoked inflation in the United States, Europe and Asia.
"We think that the likely OPEC announcement of a 1.5 million bpd increase in production quotas will offer moderate pressure to trade initially but also think that it has already been priced in," said Tom Pawlicki, analyst at MF Global Research.

Oil lower ahead of OPEC meeting, dollar supports
SINGAPORE, June 8 (Reuters) - Brent dropped below $116 on Wednesday ahead of an OPEC meeting where members are expected to agree to raise global oil supplies to rein in high prices that have weighed on growth and stoked inflation in the United States, Europe and Asia.
Dollar weakness limited the fall after U.S. Federal Reserve Chairman Ben Bernanke said growth in the world's largest economy had slowed.

Copper falls as dollar edges up from 1-mth low
SINGAPORE, June 8 (Reuters) - Copper fell by 1 percent on Wednesday in London, New York and Shanghai, with international markets reversing early gains as the dollar recovered from a one-month low after a bleak assessment of the U.S. economy by Federal Reserve officials.
"There are so many hidden booby traps in Europe and unknowns in China. I think the market will want to wait until LME week bef  o  re really showing its intentions," the trader said.

Gold dips, market seeks clues on U.S. policy move
SINGAPORE, June 8 (Reuters) - Gold ticked down on Wednesday as the dollar edged up from one-month lows against a basket of currencies, while investors looked for hints on the U.S. central bank's next policy move after its chairman acknowledged the economy had slowed.
"Gold lacks momentum for a rally but does not have much room on the downside," said Li Ning, an analyst at Shanghai CIFCO Futures. "We need some earth-shattering news to stimulate the market."

China daily crude steel output falls 3.46 pct over May 21-31
BEIJING, June 8 (Reuters) - Daily output of crude steel in China in the last 11 days of May fell 3.46 percent compared with the previous 10 days, reaching 1.915 million tonnes, according to data issued on Wednesday by the China Iron and Steel Association.
The figure would amount to almost 699 million tonnes if calculated on an annualised basis, compared to 627 million tonnes of output for all of last year.

Japan steel mill agrees on Q3 iron ore price -report
TOKYO, June 8 (Reuters) - A major Japanese steelmaker has agreed in principle with a major producer on an iron ore price of around $170 a tonne for July-September, basically steady from a record high price for April-June, Japan's Yomiuri newspaper reported on Wednesday.
The price for coking coal is expected to settle around $315 a tonne for July-September, up around 10 percent from April-June, the Yomiuri report said, without citing sources.

20110608 1157 Global Market & Commodities Related News.

GLOBAL MARKETS: Asia stocks flat after bearish Bernanke comments
SINGAPORE, June 8 (Reuters) - Asian stocks were flat to slightly lower on Wednesday after bearish comments from U.S. Federal Reserve Chairman Ben Bernanke, adding to fears about the strength of the world economy.
The dollar hovered around one-month lows against a basket of major currencies after Bernanke acknowledged a slowdown in the U.S. economy, but offered no suggestion of further monetary stimulus to support growth. The dollar index then picked up to trade around 73.62.

OIL: Brent jumps 2 pct on dollar, Mideast; eyes OPEC
NEW YORK, June 7 (Reuters) - Brent crude oil rose 2 percent on Tuesday, lifted by a weaker dollar and Middle East conflicts that also pushed its premium to U.S. crude to a record above $17 a barrel.
"OPEC raising production may already be priced in and Brent gets a lift from the euro strength and the weak dollar, and that market is more immediately affected by potential supply threats in the Middle East," said Richard Ilczyszyn, senior market strategist at Lind-Waldock in Chicago.

NATURAL GAS: Natural gas ends near flat, heat lends support
NEW YORK, June 7 (Reuters) - U.S. natural gas futures ended nearly unchanged on Tuesday after an early sell-off, with strong heat this week from Texas to New York underpinning prices despite milder U.S. weather forecasts for next week.
"We had a strong day up on Monday, then they tried to pull back today, but it's still hot and cash has been pretty firm," a Texas-based trader said, noting Henry Hub cash prices at $4.83 were trading at 10-month highs.

COMMODITIES: Dollar dip boosts sector, Mideast strife lifts oil
NEW YORK, June 7 (Reuters) - Most commodities rose on Tuesday, with investors seeking a store of value after a Chinese official's comments about loose U.S. monetary policy drove the dollar to a one-month low.
"While dollar-induced buying could lift commodities over the short-term, it seems to us that markets will have to downplay its impact and refocus on the fact that slowing growth will reduce overall demand and put upward pressure on inventories," Edward Meir, senior commodities analyst at MF.

20110608 1151 Global Economic Related News.

China: May widen yuan’s trading band in coming weeks
China may widen the yuan’s trading band in the “next few weeks” as policymakers favour a more flexible exchange rate to combat inflation. The range may be widened to allow the currency to trade as much as 1% on either side of daily fixing set by the People’s Bank of China, currency strategists Callum Henderson and Robert William wrote in a research note yesterday. It was last widened to 0.5% from 0.3% in May 2007. (MalaysianReserve)

Indonesia: May delay rate rise as inflation slows, rupiah climbs
Indonesia’s central bank will probably keep interest rates unchanged for a fourth month as slowing inflation and a strengthening currency allows it to delay an increase and support economic expansion. Bank Indonesia will hold its benchmark reference rate at 6.75%, according to all 14 economists surveyed by Bloomberg News ahead of a decision due in Jakarta tomorrow. Governor Darmin Nasution has refrained from adding to the central bank’s first rate increase in more than two years in February even as neighbors from Thailand to the Philippines tightened monetary policy further. Inflation eased for a fourth month in May as a 5.4% gain in the rupiah this year capped import costs. (Bloomberg)

Australia: RBA’s Stevens hold key rate with little urgency to increase
The Reserve Bank of Australia (RBA) left its benchmark interest rate unchanged for a sixth straight meeting and signaled little urgency to increase borrowing costs as a stronger currency helps contain inflation. Central bank Glenn Stevens yesterday held the overnight cash rate target at 4.75% in Sydney, as forecast by 23 of 28 economists surveyed by Bloomberg news. (MalaysianReserve)

UK: Retail sales down 2.1% y-o-y in May
British retail sales fell unexpectedly in May as low wage growth and high inflation forced consumers to rein in spending after a strong Easter, a survey showed yesterday. The British Retail Consortium (BRC) said the value of annual like-for-like retail sales fell by 2.1% in May after a 5.2% jump in April which had been driven by the timing of Easter and an extra public holiday for the royal wedding. Total sales in May, including sales in new floor space, were down 0.3% after a 6.9% rise in April. (FInancialDaily)

US: Job openings drop for first time in three months
Job openings in the US decreased in April for the first time in three months, showing companies started to lose confidence in the expansion’s durability even before hiring slumped in May. The number of positions waiting to be filled fell by 151,000 to 2.97m, the fewest since January, the Labor Department said today in a statement posted on its website. The number of people hired and the number of workers fired also decreased. The unemployment rate rose to 9.1% in May while employers added the fewest workers in eight months, Labor Department data showed last week. More job gains are needed to drive consumer spending after economic growth slowed in the beginning of the year. (Bloomberg)

20110608 1150 Malaysia Corporate Related News.

KLCI chart reading :
correction range bound upside biased.

SIA 'absolutely confident' about its new low-cost long-haul venture
Singapore Airlines’ (SIA) chief is "absolutely confident" about its new low-cost long-haul venture, saying that there is plenty of untapped potential in the market. SIA CEO Goh Choon Pong told this to reporters after announcing the establishment of a long-term partnership with Virgin Australia yesterday. He was asked to comment on the venture's chances in the new market segment considering the lead time AirAsia X, an affiliate of budget carrier AirAsia, has set up some four years ago. SIA already has a short-haul budget arm in Tiger Airways Holdings Ltd. The carrier has yet to announce the management line-up for its new low-cost long-haul unit and Goh was non-committal on a timeline for it. (BT)

Puncak Niaga in talks with Bourbon
Puncak Niaga is fast remodeling itself from being a water concessionaire into an emerging, and increasingly significant, oil and fast player. Puncak is in talks with Paris-based Bourbon SA, a large company which provides offshore O&G marine services, for the former to be Bourbon’s agent for Southeast Asia, industry sources say. Negotiation appears to be still ongoing and the company had yet to make any announcement to Bursa Malaysia Bourbon is a publicly traded company in France and as at June last year, it owned a fleet of 403 vessels with another 111 vessels on order. (Financial Daily)

Hap Seng earmarks RM450m for capex
Hap Seng Consolidated has allocated RM460m for capex for this year to grow its six core divisions, namely car distribution, plantation, building materials, financing services, property development and fertilizer. On top of that, the diversified group has also set aside RM800m to RM900m for capex for the next three years, its group MD Datuk Edward Lee Ming Foo said. (Financial Daily)

Tabung Haji buys 9.9% of Faber
Pilgrim fund Lembaga Tabung Haji emerged as a substantial shareholder of Faber Group after it bought a 9.96% stake in the company last Thursday. Fillings with Bursa Malaysia show that LTH bought 36m Faber shares off market from Universal Trustee (Malaysia). Market data shows that the transaction was done at RM1.90 a share. (Financial Daily)

Zecon pre-awarded Kuching project
Zecon yesterday told Bursa Malaysia that it has been pre-awarded the Petra Jaya hospital project in Kuching by the Public Works Department of Malaysia. It did not disclose the project value. The letter of intent appointed Zecon to do the survey works, soil investigation and related works and submit the design and funding proposals within 90 days from the receipt of the pre-award documents. (BT)

UOA Dev to buy land for RM50m
UOA Development, through its wholly-owned subsidiary Magna Tiara Development SB, has proposed to buy two parcels of land measuring 1.94ha in Kuala Lumpur for RM50m. The company told Bursa Malaysia yesterday that the land located in the city centre will be developed into high-rise residential. Construction is due to start in the fourth quarter of the year, it added. (BT)

Ho Hup wins suit
After more than a year of litigation, the KL High Court has finally ruled in favour of Ho Hup Construction Co by declaring null and void a joint development agreement between the latter’s 70% owned subsidiary, Bukit Jalil Development SB and Pioneer Haven SB, a wholly-owned unit of Malton. The finalization of the court decision would enable Ho Hup to proceed with its financial regularization plan which had been delayed pending the outcome of the suit. (Starbiz)

20110608 1146 Global Market Related News.

DJIA chart reading : downside biased with possible pullback.

Hang Seng chart reading : downside biased.

World Bank Urges Rate Rises in Emerging Nations With Global Growth at 3.2% (Source: Bloomberg)
Emerging-market economies, growing almost three times faster than their developed counterparts, need to speed spending cuts and interest-rate increases as they fight inflation and overheating, the World Bank said.

Asian Stocks Drop on Stimulus Concerns (Source: Bloomberg)
Asian stocks dropped, dragging the regional benchmark index to its lowest level in two weeks, as Federal Reserve Chairman Ben S. Bernanke gave no hint of a new round of economic stimulus even as the recovery slows. LG Electronics Ind., the world’s third-biggest maker of mobile phones, dropped 1.5 percent in Seoul. Nissan Motor Co., the Japanese carmaker that gets about 34 percent of sales from North America, slipped 1.5 percent. Tokyo Electric Power Co., owner of the crippled Fukushima Dai-Ichi nuclear power station, slumped 5.1 percent, headed for a record low, after the Nikkei newspaper reported that all Japan’s nuclear reactors may be idled.

U.S. Economy Stays Above Its ‘Stall Speed,’ Alan Ruskin Says: Tom Keene (Source: Bloomberg)
The U.S. economy is growing above “stall speed,” according to Alan Ruskin, global head of Group- of-10 foreign-exchange strategy at Deutsche Bank AG in New York. “A lot of people say that if the U.S. economy slows below 2 percent in year-over-year gross domestic product historically, we’ve slipped in to recession,” Ruskin said in an interview on Bloomberg Television’s “Midday Surveillance” with Tom Keene. “The key is that we stay above that line, otherwise that is perceived as stall speed and other issues kick in.”

Job Openings in U.S. Decreased in April for First Time in Three Months (Source: Bloomberg)
Job openings in the U.S. decreased in April for the first time in three months, showing companies started to lose confidence in the expansion’s durability even before hiring slumped in May. The number of positions waiting to be filled fell by 151,000 to 2.97 million, the fewest since January, the Labor Department said today in a statement posted on its website. The number of people hired and the number of workers fired also decreased.

U.S. Consumer Borrowing Increases by $6.25 Billion in Seventh Monthly Gain (Source: Bloomberg)
U.S. consumer borrowing rose in April for a seventh consecutive month, led by a gain in non-revolving debt, including auto and student loans, the Federal Reserve reported today. Credit rose by $6.25 billion after a revised $4.82 billion gain in March that was smaller than the previous estimate, the Fed said in Washington. Economists projected a $5 billion increase in, according to a Bloomberg News survey.

Inflation Target Should Be Set to Spur U.S. Recovery, Fed’s Lockhart Says (Source: Bloomberg)
Federal Reserve Bank of Atlanta President Dennis Lockhart said the central bank should set an explicit goal for inflation to invigorate the “halting” economic recovery. “Now is a good time to reaffirm in explicit terms the central bank’s commitment to delivering its piece of the package of fundamentals needed to assure a durable and lasting recovery,” Lockhart said today in a speech in Charlotte, North Carolina. It was his first call for the adoption of an inflation target.

Fed Is Said to Back Three-Percentage-Point Capital Surcharge for Big Banks (Source: Bloomberg)
The Federal Reserve supports a proposal at the Basel Committee on Banking Supervision that calls for a maximum capital surcharge of three percentage points on the largest global banks, according to a person familiar with the discussions.

U.S. Stocks Decline as Fed’s Bernanke Gives No Hint of New Stimulus Plan (Source: Bloomberg)
U.S. stocks fell a fifth day, the longest slump for the Standard & Poor’s 500 Index in almost a year, as Federal Reserve Chairman Ben S. Bernanke gave no hint of a new round of economic stimulus even as the recovery slows. Cisco Systems Inc. (CSCO), Bank of America Corp. (BAC) and Hewlett- Packard Co. lost more than 1 percent to lead losses in the Dow Jones Industrial Average. Six of 10 industry groups in the S&P 500 fell, with the index erasing a rally of up to 0.8 percent in the final minutes of trading, as Bernanke gave no indication of a new round of asset purchases known as quantitative easing.

Dimon Asks Bernanke If Regulators Went Too Far (Source: Bloomberg)
JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon asked Federal Reserve Chairman Ben S. Bernanke whether regulators have gone too far by reining in the U.S. banking system and are slowing economic growth. Dimon asked whether the central banker has measured the cumulative effects of new capital requirements, mortgage standards and other rules imposed on the system in the wake of the U.S. financial crisis. Dimon, 55, spoke yesterday in a question-and-answer session after Bernanke addressed a conference of bankers in Atlanta.

Fed officials say economic data disappointing
NEW YORK, June 6 (Reuters) - U.S. Federal Reserve officials on Monday said recent economic data has been disappointing, with one suggesting it could delay the Fed's exit from its extremely easy monetary policy.
"The slowdown does change when you think the timing would be for when an exit strategy would be appropriate," Eric Rosengren, president of the Boston Federal Reserve Bank, told CNBC in an interview.

‘Uneven’ Recovery Still Needs Stimulus: Bernanke (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke said record monetary stimulus is still needed to boost a “frustratingly slow” recovery and repeated that a rise in inflation is likely to prove temporary. “The economy is still producing at levels well below its potential; consequently, accommodative monetary policies are still needed,” Bernanke said today in a speech to a conference in Atlanta. At the same time, the Fed “will take whatever actions are necessary to keep inflation well controlled,” he said.

China’s Net Purchases of Japan’s Long-Term Debt Rises to Record in April (Source: Bloomberg)
China’s net purchases of Japan’s long-term debt reached a record as the larger nation seeks to diversify the world’s biggest currency reserves. China bought a net 1.33 trillion yen ($16.6 billion) in Japanese long-term bonds in April, the biggest amount since records began in January 2005, according to data released today in Tokyo by Japan’s Ministry of Finance. The nation sold a net 1.47 trillion yen of short-term debt, the data shows.

Euro ticks up, Asian shares fall on growth fears
SINGAPORE, June 7 (Reuters) - The euro ticked up in Asia steadying from a slide after the Eurogroup chairman said the common currency was overvalued, while Asian stocks fell for a fourth day on worries about slowing global growth.  "Those comments (from Juncker) probably weighed on the euro at the margin. But the direction of a weaker dollar is pretty clear this point in time, so I'm expecting a bounce in the euro," said Richard Grace, chief currency strategist at Commonwealth Bank.

Japanese Stocks Decline After Bernanke Gives No Signal on New Stimulus (Source: Bloomberg)
Japanese stocks declined after Federal Reserve Chairman Ben S. Bernanke gave no hint of a new round of economic stimulus even as the U.S. recovery slows.

S. Korea’s Revised GDP in Line With Estimates (Source: Bloomberg)
South Korea’s economy expanded in line with initial estimates in the first quarter, underpinning the case for the central bank to raise borrowing costs this week. Gross domestic product grew 4.2 percent from a year earlier, unchanged from the earlier estimate, the Bank of Korea said in Seoul today. The economy expanded 1.3 percent in the three months through March from the previous quarter, less than the April estimate of a 1.4 percent gain.

German April manufacturing orders rise 2.8 pct m/m
BERLIN, June 7 (Reuters) - German manufacturing orders rose a seasonally adjusted 2.8 percent in April helped by an above average number of orders worth over 50 million euros ($73  million), data showed on Tuesday, indicating the economy should expand at a healthy pace.
Data published by the German economy ministry on Tuesday also revised March orders upwards to show a drop of 2.7 percent instead of the sharper 4.0 percent fall initially reported.

RBA’s Stevens Holds Rates as Currency Strength Hurts Factories, Retailers (Source: Bloomberg)
The Reserve Bank of Australia’s decision to extend a pause in interest-rate increases signals concern that a rising currency and the developed world’s highest borrowing costs are restraining growth.

FOREX-Dlr index sinks to 1-mth low after China warning
LONDON, June 7 (Reuters) - The dollar hit a one-month low against a basket of currencies on Tuesday and a record trough against the Swiss franc as bearish comments from a Chinese official clouded an already weak outlook for the greenback.
Investors stepped up dollar selling after a senior official at the Chinese forex regulator warned about the risks of excessive dollar holdings, saying Washington could pursue a policy to weaken the greenback.

20110608 1142 Global Commodities Related News.

Corn (Source: CME)
US corn futures finish higher in a turnaround from yesterday's sharp losses. Sales of 822,960 metric tons to Mexico help support prices, particularly in deferred contracts as the grain was for delivery in 2011-12 and 2012-13 marketing years. The long-range sales send a signal that grain users are nervous supplies will stay tight, analysts say. "They're trying to secure inventory," says Larry Glenn, broker and analyst at Frontier Ag. CBOT July corn rises 4 1/2c to $7.36 1/2 a bushel; December corn climbs 9 1/2c to $6.76 1/2.

Wheat (Source: CME)
US wheat futures finish solidly lower, with the nearby MGEX contract suffering the heaviest losses in a setback from strong recent gains. MGEX spring wheat tumbles as traders take profits after the contract reaches a nearly 3-year high. The accelerating winter-wheat harvest adds pressure to CBOT and KCBT wheat as fresh supplies come in from the fields. In Western Europe, crop concerns ease as rains fall in dry areas. CBOT July wheat falls 10 1/4c to $7.33 3/4 a bushel while KCBT July loses 15 1/2c to $8.74 1/2 and MGE July sinks 57 1/4c to $9.84 3/4.

Rice (Source: CME)
US rice futures edge higher as the market continues to recover from a 2-week low reached Friday. The recent slide was seen as overdone due to ongoing crop concerns. Analysts say farmers likely planted fewer acres than they intended due to wet weather in the South. Plantings were already projected to drop significantly from last year due to weak prices. CBOT July rice rises 2 1/2c to $14.77/hundredweight.

Corn Futures Costlier Than Wheat in Chicago for the First Time Since 1984 (Source: Bloomberg)
Corn futures are more expensive than wheat futures on the Chicago Board of Trade for the first time since 1984, according to data compiled by Bloomberg. Corn for July delivery, the most active contract, traded at $7.43 a bushel at 7:25 a.m. in Singapore while wheat for delivery in the same month traded at $7.3875 a bushel.

USDA seen lowering US corn stocks; yields eyed
CHICAGO, June 6 (Reuters) - Near-record high corn prices have done little to slow demand for the golden grain from U.S. livestock feeders and ethanol producers -- a factor that should prompt the U.S. Agriculture Department to lower its forecast of U.S. old-crop corn inventories this week, analysts said.
USDA has projected U.S. corn ending stocks for the "old crop" 2010/11 marketing year at 730 million bushels, a 15-year low. The tightness has kept Chicago Board of Trade corn futures near an all-time high, set in April, of $7.83-3/4 a bushel.

USDA to cut U.S. winter wheat view on dry weather
CHICAGO, June 6 (Reuters) - Drought conditions in the southern U.S. Plains were expected to cause the U.S. Agriculture Department to lower its forecast for 2011 U.S. winter wheat production by 2.2 percent, analysts and traders said.
USDA, which has already pegged this year's winter wheat crop as the smallest in five years, will release its latest outlook on U.S. wheat production, as well as supply and demand estimates, on Thursday.

US corn planting seen at 93 pct
CHICAGO, June 6 (Reuters) - Some dry and hot weather in the eastern Corn Belt likely allowed farmers to make progress on their much-delayed corn planting in the past week as they scramble to seed a final 13 million acres, analysts said.
The U.S. Agriculture Department's weekly crop progress report on Monday afternoon is expected to show that farmers had planted 93 percent of their anticipated corn acreage as of June 5, based on an average of estimates given by 10 analysts.

Corn planting seen 93 pct done, soybeans 70 pct
CHICAGO, June 6 (Reuters) - Some dry and hot weather in the eastern Corn Belt likely allowed farmers there to make progress on their much-delayed corn planting in the past week, analysts said.
The U.S. Agriculture Department's weekly crop progress report on Monday afternoon is expected to show that farmers had planted 93 percent of their anticipated corn acreage as of June 5, based on an average of estimates given by 10 analysts.

U.S. wheat, soy tick up after selloff; corn steady
SINGAPORE, June 7 (Reuters) - U.S. wheat edged higher recovering from a three-week low, while corn was little changed as bargain-hunters and end-users stepped in following last session's steep losses, triggered by improved crop weather.  "Whenever there is price pull-back, it attracts some bargain hunting from countries that are suffering from tight supplies of grains," said Ker Chung Yang, analyst at Phillip Futures in Singapore.

Australia farm sector set for solid year: NAB
SYDNEY, June 7 (Reuters) - Australia's farm exports are likely to rise nearly 5 percent in fiscal 2011/12, boosted by favourable weather and farmers planting more crop in response to high global prices, National Australia Bank Ltd  said in a report on Tuesday.
NAB said producers were globally increasing production in response to high prices but weather risks in some key northern hemisphere exporting countries pose a threat to yields, while depleted stocks would continue to support prices.

FAO world food index likely to be steady for May
MILAN, June 7 (Reuters) - The United Nations' Food and Agriculture Organisation (FAO) on Tuesday is to update its monthly Food Price Index, which measures price changes for a basket of cereals, oilseeds, dairy products, meat and sugar.
Developing countries must double food output from 2005-2007 levels, and developed countries should raise output 70 percent to feed the world population, which the United Nations estimates will grow from about 6.7 billion to more than 9 billion in 2050.

US spring wheat nears 3-year peak before closing lower
CHICAGO, June 6 (Reuters) - Industry sources discounted talk that the Canadian Wheat Board, which has an export monopoly on wheat from Western Canada, was caught in a market squeeze. The CWB declined to comment.
"Farmers haven't been able to plant wheat and now the late plantings will be vulnerable to heat damage. Canadian farmers also haven't been able to plant," said Brian Hoops, president of Midwest Market Solutions in Yankton, South Dakota, and Springfield, Missouri.

W.Canada planting 80 finished-Wheat Board
WINNIPEG, Manitoba, June 6 (Reuters) - Western Canada's farmers have planted 80 percent of their crops, behind normal progress, with parts of Saskatchewan and Manitoba likely to stay fallow this year due to wetness, a Canadian Wheat Board official said on Monday.
Normally, the region has seeded 93 percent of crops by this time.

U.S. wheat falls as rain boosts European crop prospects-trade
CHICAGO, June 6 (Reuters) - Analysts, on average, were expecting the USDA to lower its U.S. winter wheat forecast to 1.392 billion bushels from 1.424 billion, according to a Reuters poll. Hot and dry weather in the U.S. Plains this week will stress any late filling hard red winter wheat in southern Kansas but favorable conditions northward. Some progress is being made in planting corn and spring wheat in the northern U.S. Plains but it still appears some acreage will go unplanted.

Flooded Missouri River still open to barge traffic
CHICAGO, June 6 (Reuters) - The flood-swollen Missouri River remained open to commercial barge traffic on Monday, although shipping restrictions were in place due to high water near Bismarck, North Dakota, the U.S. Coast Guard said.
Historically low water levels on the river limit the amount of grain that can be loaded on barges and the cost of shipping shallow draft barges is often higher than rail, they said.

Food Prices Linger Near Record as Wheat Output to Trail Demand, UN Says (Source: Bloomberg)
Global wheat production will lag behind demand, helping to keep food prices high and volatile at least through next year, the United Nations’ Food and Agriculture Organization said. Wheat output will rise 3.2 percent to 673.6 million metric tons in the season starting in July, trailing demand of 677 million tons, the FAO said in a report on its website today. Food prices stayed near record levels in May on higher meat and dairy costs. Food imports will rise 21 percent to a record $1.29 trillion this year, the FAO said separately.

Global Food 2011 Imports May Climb 21% to Record $1.29 Trillion, FAO Says (Source: Bloomberg)
Global food imports may rise 21 percent to a record $1.29 trillion this year, with “poorer” countries spending up to 30 percent more than last year, the Food and Agriculture Organization of the United Nations said.

World Food Prices To Stay High Into 2012 - FAO (Source: CME)
World food prices are likely to remain high well into next year as weather problems threaten grain harvests in key producers, putting pressure on already hard-pressed importing countries, according to a report by the United Nations' food body. The Food and Agriculture Organization's food index averaged 232 points in May, down a modest 1% from a revised estimate of 235 points in April, but still only six points off the record high hit in February, the FAO said in its monthly update. And in its biannual food report, the organization warned that even a forecast 3.5% rise in world cereal output to a record 2.3 billion metric tons in 2011 may not be enough to replenish scarce world stocks and calm the turbulence that has wracked world food markets this season. "The general situation for agricultural crops and food commodities is tight with world prices at stubbornly high levels, posing a threat to many low-income food deficit countries," said David Hallam, director of FAO's Markets and Trade Division.
International grain prices hit record peaks earlier this year after prolonged drought in Russia and Ukraine slashed output and took some of the world's cheapest grain out of the market, leaving buyers scrambling to secure supplies. Now analysts warn prices may soon revisit their peaks as severe drought across Europe and parts of the U.S. and excess rain in the northern U.S. and Canada threaten the 2011-12 crop in two of the world's key exporters against a backdrop of rising global demand. The FAO forecasts the world's stock-to-use ratio for coarse grains will fall to 13.9% in 2011-12 despite a forecast rise in production, down from 14.2% the season before. The stock-to-disappearance ratio in major exporting countries is expected to rise to 8.5% after the rapid pace of exports in 2010. "The global supply picture remains tight," said FAO grain analyst Abdolreza Abbassian.
Countries which rely on imports have been hit particularly hard by the rise in food prices this year and inflation has been blamed for sparking the wave of unrest which has swept the Arab world this year. The World Bank estimates 44 million people may have been pushed into poverty by the price increases and charities warn millions more face starvation if prices stay high. Many buyers are now pinning their hopes on the return of grain from the Black Sea after the Kremlin said exports will resume in July. FAO analyst Abdolreza Abbassian estimated Russian wheat exports will reach 5 million tons and total grain exports 11 million tons in the 2011-12 crop year. But he warned that indications the Kremlin may impose export duties, as Kiev has already done, could inhibit the flow of badly needed supplies onto the world market. The report comes ahead of a meeting by agriculture ministers from the group of 20 industrialized nations in France at the end of June.
French President Nicolas Sarkozy has made regulating food markets the priority of his leadership of the G20 this year but other agricultural powers, such as the U.S., have indicated they do not necessarily support France's push for a more unified take on food reserves. Speaking at a conference in London, French Agriculture Minister Bruno le Maire said he believes officials will be able to reach a consensus to improve transparency in world food markets and create a worldwide network of inventories to cushion any supply shocks in the future. "I think today we are not far from a consensus on this action plan," he told the conference. "Just as we need transparency in the oil sector we need transparency in the agriculture sector, especially grains."

EU To Bolster Vegetable Markets After E. Coli Outbreak (Source: CME)
European Union authorities are proposing to give vegetable farmers EU funds to destroy their products in an effort to bolster agriculture markets hard hit by the European E. coli outbreak, EU officials said. The origin of the outbreak, meanwhile, remains a mystery: German authorities said that they couldn't determine whether a sprout farm in northern Germany, the region at the center of the outbreak, was the source of the bacteria. The money sought by EU authorities would be used to destroy tomatoes, lettuce and cucumbers, and possibly peppers and zucchini. Some of these vegetables were mistakenly identified by German authorities in May as the origin of the E. coli outbreak, which has been linked to a particularly dangerous strain of the bacteria that has killed 23 people and sickened 2,200 others, mostly in northern Germany. Authorities subsequently ruled out those vegetables as the source, leaving farmers outraged and demanding compensation from EU governments.
The European Commission, the EU's executive arm, had proposed to spend EUR150 million on vegetable destruction. But EU governments told the commission at a meeting here that amount wasn't nearly enough to address the magnitude of losses suffered by farmers. Dutch Agriculture Minister Henk Bleker said the EU should spend EUR200 to EUR300 million on vegetable destruction. The EU farm commissioner, Dacian Ciolos, said he would propose a new plan, with more money, possibly as early as Wednesday. But he cautioned that there isn't much room in the EU budget, which has already been stretched thin because of the economic crisis. "It puts the commission in an awkward position," Ciolos said. "The commission proposal can't only take account of losses. We also have to look at the budget available." European vegetable consumption has fallen significantly in the past three weeks since the first cases were diagnosed in Germany. That has left the market with a glut of supply.
The commission's initial proposal would pay farmers 30% of the average market price over the past four years for their product to destroy it. Spain, which was first accused as the source of the contaminated vegetables, and some other countries are asking for farmers to be paid at 100% of the average market price. European health authorities are still struggling to discover the source of the outbreak. Regional German officials reported that testing on bean sprouts from a small organic farm in northern Germany still hasn't proven that it is the source of the E. coli infections.

IGC: World Wheat Production Short Of Demand On Weather Problems (Source: CME)
World wheat production is now expected to fall short of demand for a second consecutive season as weather problems slash hopes for crops in key producers Europe and the U.S., the International Grains Council said. In a special report to coincide with the intergovernmental organization's annual conference, the IGC reduced its forecast for world wheat production to 663 million metric tons, leaving a deficit of four million tons against consumption of 667 million tons. Much of the downgrade was down to waning hopes for output from France, Western Europe's largest producer, where wheat production, including durhum, is expected to total only 35 million tons, four million tons lower than earlier predictions.
And in corn markets too supplies are expected to remain tight, as output is expected to hit only 843 million tons, down from a previous forecast of 848 million tons, against consumption of 850 million tons thanks to delays to plantings in the world's biggest exporter, the U.S. "The current higher level of grain prices reflect an increasingly tight demand and supply situation," IGC executive director Etsuo Kitahara told the conference. "We expect a further reduction in carryover stocks in 2011-12." The situation is particularly tight in exporting countries, where rapid sales last year in the wake of Russia's ban on grain exports have drained inventories. The IGC forecast that world grain stocks will fall to their lowest level in 15 years at 105 million tons, down 6 million tons from its May prediction.

South Africa To Export 3.5 Mln Tons Corn In 2011-2012 (Source: CME)
South African corn exports are likely to total 3.5 million metric tons in the 2011-12 crop year, the Commodity Derivatives Johannesburg Stock Exchange South Africa said. "We are seeing a lot of maize [corn] leaving South Africa now because of price levels, but plantings will need to be strong next year for the trend to continue," Rod Gravelet-Blondin, senior general manager at JSE Ltd., said at an international grain conference in London. Gravelet-Blondin said the current crop year has been characterized by unusual export deals out of South Africa, namely a total 400,000 tons of corn to South Korea and Mexico. Corn acreage in South Africa fell 13% to 2.372 million hectares this year, from 2.742 million hectares in 2010-11, as farmers turned away from corn after three excellent successive harvests left the country with a 4 million-ton surplus, the U.S. Department of Agriculture said in May.
South Africa's commercial corn crop is expected to fall 15% in 2011-12 to 10.883 million metric tons due to a fall in plantings, the USDA said.

India Food Minister Favors More Time To Export Wheat Products (Source: CME)
India's food ministry is in favor of giving traders more time for exports of around 500,000 metric tons of wheat products that were left unsold out of 650,000 tons permitted to ship abroad, Food Minister K.V. Thomas said. India allowed private traders to export wheat products for a limited period in 2009 and the program was extended in phases until March 31, 2011 after the industry failed to meet the target. Roller flour millers have now sought time until March 31, 2012 to ship the entire quantity. "We won't oppose [giving more time for] wheat product exports because we, in fact, encourage value-addition. So we may agree on wheat product exports, although we may not agree on grain exports," Thomas told Dow Jones Newswires. A ministerial panel will decide on the issue, he added, but didn't say when the panel will meet. Traders said a more-than-two-year ban until mid-2009 on wheat product exports resulted in clients shifting to other suppliers.
"India needs to have a long-term policy on wheat product exports and there should be no restriction on either the quantity or the period of exports," said Veena Sharma, secretary of the Roller Flour Mills Federation of India. She said maintaining a ban on wheat exports will not only help ensure steady local supplies, but also keep down prices that will give an edge to India's exports of value-added wheat products. Denmark, the Middle East, Indonesia, Sri Lanka, Nepal and the Maldives are the main buyers of Indian wheat products such as semolina and wheat flour that are used to make bread and bakery items. India is expecting a record wheat output of 84.27 million tons this crop year through June, up from 80.8 million tons last year. Government officials say the final output may exceed the estimate by up to 2.0 million tons.
The country's food stocks swelled to nearly triple its buffer requirement of 59.13 million tons as of May 1, triggering speculation the government may consider limited grain exports to free up storage space. But, Thomas said his ministry isn't in favor of grain exports as the government intends to enact a law that will widen subsidized grain sales to the poor. Still, India allows limited shipments to honor diplomatic requests from some countries. India will export 250,000 tons of wheat to Afghanistan, out of which 100,000 tons have already been shipped, he said. It is also likely to ship to Bangladesh 300,000 tons of parboiled rice, approved in August 2010, within a month, he added.

Nestle Expects Commodity Price Volatility To Continue (Source: CME)
Nestle SA is facing unprecedented rises in raw material prices and expects the situation to continue for the next few years, its head of procurement said. Speculators, weather conditions and rising oil prices are ramping up the prices for cocoa, coffee and other ingredients the Swiss food company uses in its products, Kevin Petrie said. "In nominal terms we are seeing unprecedented rises in the price of commodities," Petrie told Nestle's annual investor seminar in Vevey. "We see tremendous volatility and headwinds." The world is in the middle of the fifth historical commodity boom cycle, he said, with economic growth in India and China driving the surge in commodity prices. The current boom began in 2004, and could continue until 2024, he said. "We have a few years of being in this boom cycle," Petrie said. In real terms, which are adjusted for the impact of inflation, prices were also up although the longer-term trend was downwards, he said.
Volatility had increased, with the average monthly price variation rising to 16.4% in 2006 to 2010, up from a 12.4% swing between 2000 and 2005, he said. Nestle is one of the biggest food raw materials buyers in the world, spending CHF60 billion ($71.5 billion) in 2010. The figure includes CHF22 billion on ingredients like dairy, coffee and sugar, and CHF8 billion on packaging. Prices are also going up because investment funds are increasingly buying commodities because of the better returns than equities, Petrie said. "At one point investment funds had 38% of the New York arabica futures market. They have no intention of taking delivery, but they are controlling almost 30% of arabica coffee," Petrie said. There was also the issue of political crises like the conflict in Ivory Coast, which reduced cocoa shipments earlier this year. Around 33% of the world's cocoa comes from Ivory Coast, with Nestle a major customer.
"Ivory Coast was a crisis for us, but we put together a team very rapidly to deal with it," Petrie said. "We knew that when the crisis came we would have enough cocoa and cocoa products to last us through 2011. But if the crisis had continued we would have had issues for 2012." Currency, rising oil prices and weather conditions such as heavy rainfall in Colombia which reduced arabica coffee exports were also factors. Biofuel also played a significant role, with increasing amounts of feedstock like corn and rapeseed oil being used for biofuel instead of food. Nestle has set up commodity research teams to identify trends, while the company uses futures contracts and hedging to lessen its exposure to price swings. "The tremendous volatility give us an opportunity to take positions and cover the risks," Petrie said.


Coffee, cocoa firm, tight supplies white sugar
LONDON, June 7 (Reuters) - ICE arabica coffee and cocoa futures edged higher in light volumes in early trade on Tuesday, while raw sugar firmed, underpinned by tight supplies of white sugar. ICE raw sugar futures edged up in light volumes, underpinned by tight availability of refined sugar, combined with new-crop loading delays at ports in Brazil after a slow start to the harvest.

Vietnam Coffee-June loading to dip, prices above London
HANOI, June 7 (Reuters) - Vietnam's coffee exports slowed this week on thin stocks and falling prices in London markets from recent peaks, and exports  this month could fall by up to a third from May following strong loading earlier this year, traders said on Tuesday.
June's coffee exports would drop to between 65,000 tonnes and 80,000 tonnes, or 1.08 million to 1.33 million bags, from 110,000 tonnes in estimated shipments last month, traders said.

Mexico sugar output up 5.16 mln tonnes to June 4
MEXICO CITY, June 6 (Reuters) - Mexico has so far produced 5.16 million tonnes of sugar in the 2010/11 season, 8.12 percent more than the previous harvest, the national cane workers union said on Monday.
Mexico's sugar harvest is expected to reach 5.25 million tonnes this year, above the previous two seasons when output dropped to its lowest levels in a decade due to bad weather.

Rains and sun boost hopes for Ivorian cocoa crop
ABIDJAN, June 6 (Reuters) - Ivory Coast's cocoa growing regions received abundant rainfall mixed with periods of sunshine last week, raising expectations of an abundant mid-crop in the world's top grower, farmers and analysts said on Monday.
Ivorian cocoa arrivals to port are already running more than 15 percent higher than last year despite the effects of a four-month power struggle that killed thousands and left the economy in ruins, according to exporters.

Ivorian cocoa arrivals seen 15 pct over yr-ago
ABIDJAN, June 6 (Reuters) - Ivory Coast cocoa output is running 15 percent over last year, exporters said on Monday, reinforcing hopes the West African country's recent post-election conflict spared its main industry.
Some 1,166,560 tonnes of beans arrived from Ivorian plantations to port by June 5 since the start of the season in October, up from 1,009,646 tonnes in the same period a year ago, according to a consensus estimate from exporters.

Oil Declines, Erasing Earlier Gains; OPEC May Raise Production Quota Today (Source: Bloomberg)
Oil traded little changed in New York today, erasing earlier gains. Crude for July delivery was down 14 cents, or 0.1 percent, at $98.95 a barrel in electronic trading on the New York Mercantile Exchange at 12:10 p.m. Sydney time. Prices are up 37 percent the past year.

Oil Gains After U.S. Stockpiles Plunge; OPEC May Raise Output Quotas Today (Source: Bloomberg)
Oil climbed for a second day in New York after a report showed U.S. crude supplies declined the most since December and on speculation OPEC will increase production quotas, signaling global fuel demand will climb. Futures gained as much as 0.7 percent after the industry- funded American Petroleum Institute said crude stockpiles fell 5.5 million barrels to 366 million. OPEC will raise its output target at a meeting in Vienna today, according to a Gulf delegate with knowledge of the matter. The U.S. raised its forecast for global oil consumption for this year.

Top mining firms seeing lower profit margins – PwC
LONDON, June 7 (Reuters) - Profit margins for the world's top 40 mining companies are below the historical peaks of 2006 and 2007 as higher costs outweigh record commodity prices, PricewaterhouseCoopers said on Tuesday.
Revenues for the world's 40Fed officials say economic data disappointing
NEW YORK, June 6 (Reuters) - U.S. Federal Reserve officials on Monday said recent economic data has been disappointing, with one suggesting it could delay the Fed's exit from its extremely easy monetary policy.

Copper in London Gains for Fourth Day, Set for Longest Rally in Two Months (Source: Bloomberg)
Copper in London climbed for a fourth day, set for its longest rally since April, as ongoing supply disruptions and a weaker dollar offset concern about an economic slowdown. The metal for three-month delivery on the London Metal Exchange gained as much as 0.2 percent to $9,157.50 a metric ton at 8:05 a.m. Singapore time.

Gold Falls From Five-Week High as European-Debt Concerns Ease, Euro Gains (Source: Bloomberg)
Gold futures fell from a five-week high as European debt concerns eased, eroding the appeal of the precious metal as a haven.

Japan Q3 aluminium premium deal seen at $120/T -source
TOKYO, June 7 (Reuters) - The premium for primary aluminium shipments to Japan in the July-September quarter has been set at $120 per tonne for at least one deal, up from $113 for the current April-June quarter, an industry source directly involved in premium talks said on Tuesday.
"We have agreed to a premium of $120," said the source, noting that the amount covered by the deal accounted for about a third of the volume his company is negotiating on.

Key Chile mine struggles for 3rd day due to strike
SANTIAGO, June 6 (Reuters) - The world's fifth largest copper mine, Chile's El Teniente, worked at less than half of capacity on Monday as most workers stayed home for a third day to avoid violence by striking contractors, owner state giant Codelco said.
The mine slowed down operations late last week after temporary workers, on strike since May 25, threw stones at buses carrying workers to the mine. Police patrols escorted buses carrying a few hundred staff employees to the deposit on Sunday to work on a contingency plan that allows the 404,000 tonne-a-year mine to produce at 40 percent capacity.

More delay seen in iron ore exports from south India
NEW DELHI, June 6 (Reuters) - India's Karnataka state could start issuing iron ore shipment permits within 15 days, two month after an export ban was lifted, but traders said they did not expect overseas sales to pick up before September when monsoon traditionally ends.
The southern state, which accounts for about a quarter of supplies from India, was ordered on April 5 by a court to lift an export ban on iron ore imposed last year in a drive against illegal mining and to keep supplies for local steelmakers.

Lead seen rising as China battery clampdown fades
LONDON, June 6 (Reuters) - Supply constraints and solid demand will push lead prices higher despite prospects a current crackdown on polluting battery-makers in top consumer China will hit consumption there in the short term.
With a major mine in Australia shut indefinitely and alternatives to the lead-acid battery far off, analysts see prices ranging from $2,700 to $3,000 a tonne in the fourth quarter, above current levels.

METALS-Copper steady on recovery prospects, dollar
LONDON, June 7 (Reuters) - Copper steadied on Tuesday supported by a soft dollar and prospects of a demand pick-up into the second half but patchy U.S. economic data and perceptions of a slowdown in China checked its advance.
Benchmark copper  on the London Metal Exchange traded at $9,135 at 1001 GMT and unchanged having closed at $9,135 on Monday. The metal hit its highest in a month at $9,278.50 one a week ago, but has failed to gain any momentum.

PRECIOUS-Gold firms as dollar slides to one-month low
LONDON, June 7 (Reuters) - Gold prices firmed in Europe on Tuesday as the dollar retreated to a one-month low against a basket of currencies, hurt by warnings from a Chinese foreign exchange official of the risks of excessive dollar holdings.
Spot gold  was bid at $1,547.95 an ounce at 1006 GMT, against $1,543.05 late in New York on Monday. U.S. gold futures for August delivery  rose $1.90 an ounce to $1,549.10.

20110608 1140 Soy Oil & Palm Oil Related News.

Soy Oil chart reading : side way range bound little upside biased

Soybeans (Source: CME)
US soybean futures climbed, managing to stabilize after yesterday's sharp slide. Uncertainties of 2011 acreage and production with planting in the eastern Midwest continuing to lag, encouraged traders to maintain risk premium in the market, analysts said. Traders also took the opportunity to cover some positions ahead of Thursday's USDA reports. Weakness in US dollar provided some outside support to buoying futures as well, analysts add. CBOT July soybeans ended 0.8% higher at $13.94 a bushel; Nov soy rose 0.9% to $13.85 1/4.

Soybean Meal/Oil (Source: CME)
US soy product futures ended mixed, with soymeal futures rallying in unison with soybeans. Strength of soybean prices brought stability to soymeal, while soyoil came under pressure from profit taking on soyoil/soymeal spreads, analysts said. CBOT July soymeal settled up 2.4% at $368/shart ton, July soyoil finished down 0.2% at 57.93 cent/pound.

Palm oil falls to near 3-week low, data eyed
JAKARTA, June 7 (Reuters) - Malaysian palm oil slipped to a near three-week low as technical selling and weak oil markets weighed on prices, while investors positioned themselves ahead of a flurry of data due at the end of the week.  "Market down today," said one trader. "Soybean and crude oil dropped ... but it's also technical."

India's May oilmeal exports jump sharply
NEW DELHI, June 7 (Reuters) - India's annual oilmeal exports jumped nearly 85 percent in May, rising for the seventh straight month, on higher oilseed output and improved demand from traditional buyers in Asia, a trend that is likely to continue in the coming months.
Oilmeal exports rose by 84.5 percent to 320,266 tonnes in May from the same month a year ago, top trade body Solvent Extractors' Association of India said in a statement.

Argentine dockworkers meet, threaten more protests
BUENOS AIRES, June 6 (Reuters) - Argentine dockworkers and representatives of fertilizer producer Mosaic  will resume talks on Tuesday in a bid to avert protests at leading grains export terminals, union leaders said on Monday.
"If they sit down to negotiate and admit they need to apply (the dockworkers') collective wage agreement, there won't be any more problems," Edgardo Quiroga, union secretary at the San Lorenzo branch of the CGT umbrella federation, told Reuters.

Argentine farmers finish harvest in soy belt- gov't
BUENOS AIRES, June 6 (Reuters) - Argentina's soy growers have finished bringing in 2010/11 beans in the main soy-farming belt, slowing corn gathering as they give the oilseed priority, the Agriculture Ministry said in its latest crop report.
Argentina is the world's No. 3 soy exporter. The government estimates the current crop at 50.4 million tonnes, only slightly down from last year's record 52.7 million tonnes despite dry weather early in the season.

Brazil soy sales ahead of last year's - Celeres
BRASILIA, June 6 (Reuters) - Sales of Brazil's record 73.6 million-tonne soybean crop remained ahead of those completed by this time last year with prices stable as a stronger local currency offset higher rates in dollars, analysts Celeres said on Monday.
The world's second biggest soybean producer and exporter after the United States harvested a record 68.5 million tonnes of soy in 2009/10, according to Celeres.

Golden Agri's 2011 production growth may exceed 10 pct
SINGAPORE, June 7 (Reuters) - Singapore-listed Golden Agri Resources'  crude palm oil production could rise by more than 10 percent this year if weather conditions remain favourable, its executive director said on Tuesday.
"If the weather conditions are good, we could hit numbers which are in excess of 10 percent," executive director Rafael B. Concepcion Jr told Reuters in an interview.