20110610 1116 Malaysia Corporate Related News.

 KLCI chart reading :

correction range bound upside biased.

UEM, Iskandar in RM850m Nusajaya development project
UEM Land Holdings Bhd is collaborating with Iskandar Investment Bhd, the main property developer for Iskandar Malaysia, to develop retail and residential units in Nusajaya, Johor with a gross development value of RM850m. Both parties signed a shareholder agreement yesterday through their subsidiaries UEM Land Bhd and Iskandar Harta Holdings SB. UEM Land Holdings managing director/chief executive officer Datuk Wan Abdullah Wan Ibrahim said a new company called Nusajaya Lifestyle SB had been formed to develop and manage the project. “UEM Land owns 55% equity interest in that company while the remaining is under Iskandar Harta,” he said at a press conference after the signing ceremony. (StarBiz)

MMHE to replace MAS in KLCI on 20 June
Malaysia Marine and Heavy Engineering Bhd (MMHE) will replace Malaysian Airline System (MAS) in the 30-stock FTSE Bursa Malaysia KLCI with effect from 20 June. FTSE Group and Bursa Malaysia said on 9 June the change was made following the semi-annual review of the FTSE Bursa Malaysia Index Series. The index series is reviewed semi-annually by the independent FTSE Bursa Malaysia Index Advisory Committee. The FBM KLCI reserve list, comprising the five highest ranking non-constituents of the index by market capitalisation, would be Nestle (M) Bhd. UEM Land Holdings, IJM Corporation, Airasia and SP Setia. Companies in the reserve list will replace constituents that become ineligible as a result of corporate actions, before the next review due on 8 Dec. MAS share price closed one sen higher at RM1.43 on Thursday, the lowest in recent years, while MMHE rose 22 sen to RM8.47. (Financial Daily)

Show-cause letters sent to several Sime directors
The Securities Commission (SC) has issued show-cause letters to several Sime Darby Bhd directors regarding possible breaches of the Listing Requirements, according to sources. This marks another step in the investigation into Sime Darby's four key projects involving its energy & utilities (E&U) division the Qatar Petroleum Project, the Maersk Oil Qatar Project, the Bakun Hydroelectric dam project and the Marine Project. “The SC has sent letters to a few directors in respect of whether certain listing rules regarding disclosure were satisfied or not,” said a source. (StarBiz)

Final assembly of MAS' A380 begins
The first Malaysia Airlines (MAS)' A380 has entered the Airbus final assembly line in Toulouse, France, for the final production phase. The final assembly process of an A380 is made up of five main phases, according to a statement from the Malaysian carrier. It will also have its engines installed and general tests conducted on its electric and hydraulic systems as well as mobile parts and landing gears. "Final ground and first engine tests take place in dedicated facilities outside of the main building," it said. The plane will then be ready for its first flight to Hamburg, Germany, where it will receive its cabin and painted in MAS livery, a more stylised version of the Malaysian "wau" (kite) which has been given a modern look reflecting the carrier's evolution into a truly global carrier. Malaysia Airlines has six A380s on order with deliveries due to begin in 2012. (Bernama)

RHB approves RM42m of green tech loans
RHB Bank Bhd has approved RM42m worth of loans in the six months of 2011 for green technology initiatives, going against the banking industry trend of seeing these initiatives as having high risk and less attractive as demand for green technology remains low. “We are at the forefront in providing green technology funding to green companies, with RM42m loans approved for this year,” RHB assistant vice president for SME business banking Chey Onn Wah said. (Malaysian Reserve)

Benalec: Unit target Mid-east investment with OIC Today. Benalec Bhd subsidiary has formed a strategic alliance with OIC Today magazine to attract investment from the Middle East for a proposed mixed commercial and tourism project in Klebang, Melaka. (Source: Business Times)

O&G: Perak approves RM5.8b investment in LNG project. The Perak government has approved a 60-ha site in Tanjung Hantu, Manjung for a liquefied natural gas (LNG) project involving an investment of RM5.8b that would be undertaken by Atigas Technology Sdn Bhd. The government is expected to save RM2b in subsidy a year because Atigas will sell the gas at the same subsidized price. (Source: The Edge Financial Daily)

Banking: Bank Mualamat still in merger mood. Bank Muamalat Malaysia Bhd is still keen to merge with a rival to build a mega Islamic bank, despite its failed attempt at courting Bank Islam Malaysia Bhd. The bank's pursuit of Bank Islam was driven by its largest shareholders' need to pare its stake in the bank and the desire by both its shareholders to create a bigger entity that is more relevant in the market. (Source: Business Times)

20110610 0956 Global Market Related News.

 DJIA chart reading : pullback correction downside biased .

 Hang Seng chart reading : correction range bound downside biased.

Emerging-Market Stocks Decline to Two-Week Low on Economy, Rates Concerns (Source: Bloomberg)
Emerging-market stocks fell, sending the benchmark index to a two-week low, on growing concern that central banks will increase interest rates even as the global economic expansion slows. The MSCI Emerging Markets Index dropped 0.3 percent to 1,142.24 at 4:30 p.m. New York time, the lowest since May 26. China’s Shanghai Composite Index lost 1.7 percent, while South Korea’s Kospi declined 0.6 percent. Poland’s WIG20 Index dropped 0.4 percent and the zloty fell 0.3 percent versus the dollar. Brazil’s Bovespa stock index gained the most in a week on lower- than-forecast inflation and rising commodities prices.

Asian Stocks Advance as U.S Confidence Rises (Source: Bloomberg)
Asian stocks rose, paring the regional benchmark index’s sixth weekly decline, as U.S. consumer confidence improved, easing concern that the global recovery will falter.

Asia stocks dip, euro pushes higher before ECB
HONG KONG, June 9 (Reuters) - Asian stocks slipped for a sixth straight day on Thursday as investors cut exposure to risky assets on signs the global economy is losing steam, with higher oil prices casting a shadow after OPEC failed to reach a deal to boost output.
"For the first time in a while, I'm hearing clients say they're short or are looking for shorts," said Todd Martin, Asia equity strategist at Societe Generale in Hong Kong

Fed:US default would be dangerous; Fitch may cut rating
NEW YORK, June 8 (Reuters) - A U.S. default would have     severe reverberations in global markets, a top Federal Reserve official said just hours after Fitch Ratings warned it could slash U.S. credit ratings if the government misses bond payments.
St. Louis Federal Reserve Bank President James Bullard told Reuters on Wednesday "the U.S. fiscal situation, if not handled correctly, could turn into a global macro shock."

U.S. Trade Gap Narrows as Exports Rise (Source: Bloomberg)
Record exports and lower oil purchases unexpectedly helped narrow the U.S. trade deficit, easing concern that the world’s largest economy is faltering. The gap shrank 6.7 percent to $43.7 billion in April, the lowest since December, Commerce Department figures showed today in Washington. Other reports showed applications for jobless benefits rose last week and consumer confidence improved.

U.S. Household Worth Increases by $943 Billion (Source: Bloomberg)
Household wealth in the U.S. climbed by $943 billion in the first quarter of 2011 as rising share prices outstripped declines in home values. Net worth for households and non-profit groups increased at a 6.8 percent annual pace to $58.1 trillion after rising at a 19 percent pace in the previous three months, the Federal Reserve said today in its flow of funds report from Washington. American households also cut debt for a 12th consecutive quarter.

Consumer Confidence in U.S. Improves on Fuel Prices, Bloomberg Index Shows (Source: Bloomberg)
Consumer confidence rose last week for the third consecutive time as lower gasoline prices lifted Americans’ outlook on their finances.

U.S. Stocks Advance After Record Export Levels Help Reduce Trade Deficit (Source: Bloomberg)
U.S. stocks advanced, snapping a six- day decline, as the trade deficit unexpectedly narrowed amid record exports and consumer confidence improved. The Morgan Stanley Cyclical Index of companies most-tied to economic growth rose 1 percent. Mosaic Co. (MOS) and CF Industries Holdings Inc. (CF) paced gains among fertilizer producers, climbing at least 4.2 percent, after the government reduced its corn-crop estimate. American International Group Inc. (AIG) advanced 2.9 percent as Deutsche Bank AG recommended buying the shares. Brown-Forman Corp. (BF/A) added 2 percent after the maker of Jack Daniel’s whiskey reported earnings that beat analysts’ estimates.

Dollar Falls Against Euro on Speculation U.S. Economic Recovery to Falter (Source: Bloomberg)
The dollar fell from a near one-week high against the euro on speculation the U.S. economic recovery will falter, damping demand for the nation’s assets.

Japan’s Producer Prices Rise for Eighth Month on Climbing Commodity Costs (Source: Bloomberg)
Japan’s producer prices rose for an eight month in May, pushed up by higher energy and raw material costs.

Nikkei 225 Advances for a Fourth Day as U.S Consumer Confidence Improves (Source: Bloomberg)
The Nikkei 225 Stock Average gained for a fourth day as U.S. consumer confidence improved, easing concern that the global recovery will falter.

South Korea Producer-Price Inflation Slows Ahead of Interest-Rate Meeting (Source: Bloomberg)
South Korea’s producer prices rose at the slowest pace in four months, bolstering the case for the nation’s central bank to keep borrowing costs on hold for a third straight month today.

Euro Slides After ECB Inflation, Growth Forecasts Spur Paring of Rate Bets (Source: Bloomberg)
The euro weakened after the European Central Bank signaled a July interest rate increase while damping investor expectations for further moves by reiterating that inflation will fall below its 2 percent limit next year. The shared currency fell for a second day against the dollar as traders closed out earlier bets on future ECB rate increases. New Zealand’s currency climbed to a record after the nation’s central bank said borrowing costs will need to rise in the next two years. The Dollar Index reached the highest in a week on speculation that dollar declines had gone too far.

Greece Is Said to Require $65 Billion More in Emergency Loans From EU, IMF (Source: Bloomberg)
European governments and the International Monetary Fund would lend as much as an extra 45 billion euros ($65 billion) to Greece under an expanded plan to avoid the euro area’s first sovereign default, two people with direct knowledge of the talks said.

Trichet Signals Rate Increase in July With ‘Strong Vigilance’ on Inflation (Source: Bloomberg)
The European Central Bank signaled a July rate increase while damping investor expectations for further moves by reiterating a forecast that inflation will fall below its 2 percent limit next year.

King’s Stance Aided by Fisher’s Caution on Recovery as BOE Holds Key Rate (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 nine-member Monetary Policy Committee, led by King, held the key rate at 0.5 percent today, as forecast by all 55 economists in a Bloomberg News survey.

Brazil Signals More Rate Increases to Come After Raising Selic to 12.25% (Source: Bloomberg)
Brazil’s central bank raised the benchmark lending rate for a fourth straight time and signaled it is prepared to increase borrowing costs further, bucking economists’ projections. Policy makers kept a pledge to raise borrowing costs for a “sufficiently long period” to bring inflation back to target in 2012, in a statement accompanying yesterday’s decision to boost the Selic a quarter-point to 12.25 percent. Analysts had expected the rate to reach 12.50 percent in July and remain there until year-end, a June 3 central bank survey said.

FOREX-Euro gains ahead of ECB meeting, upside capped
LONDON, June 9 (Reuters) - The euro rose broadly on Thursday as investors geared up for hawkish signals from the European Central Bank that would boost the single currency's yield differentials.
But there was a risk of a correction in the euro if the ECB appeared dovish by flagging a slower pace of interest rate hikes later in the year, given a possible global slowdown and the lingering Greek debt crisis. 

20110610 0952 Global Commodities Related News.

Corn (Source: CME)
US corn futures finish at record high as USDA increases supply concerns by slashing its inventory outlooks more than expected. Traders worry poor weather will prevent farmers from harvesting a large crop. USDA projects inventories will dwindle in the coming year even if they harvest a record crop. "Corn traders will likely stay on their buying spree and bring buyers to the other grains as well," predicts John Roach of Roach Ag Marketing. CBOT July corn closes up 21 1/2c at $7.85 1/2 a bushel, topping the previous high close of $7.76 from April.

Wheat (Source: CME)
US wheat futures fall as federal forecasters raise their outlook for global inventories. The increases for 2010-11 and 2011-12 season-ending stocks were "decidedly bearish," writes Doane Advisory Services. Traders say there is enough wheat to go around, particularly low-quality wheat that can be used to feed livestock. In the US, the harvest is accelerating in the South, bringing new supplies in from the fields. The USDA estimated output above expectations. CBOT July wheat drops 3c to $7.45/bushel, KCBT July loses 13 3/4c to $8.71 1/4 and MGE July slips 3/4c to $10.20 3/4.

Rice (Source: CME)
US rice futures rise as the USDA cuts its view on ending stocks due to planting disruptions from flooding. The 2011-12 inventory forecast drops 13% from last month to 42.1M hundredweight. The outlook declines, as planted area was lowered 5.6% to 2.85M acres. Flooding in the Mississippi River Delta in the mid-South reduced plantings, with long-grain rice in Arkansas and Missouri accounting for most of the losses. CBOT July rice jumps 16 1/2c to $14.94 per hundredweight.

Russian wheat offered in port, export outlook up
GELENDZHIK, Russia, June 8 (Reuters) - The Russian grain industry expects to make strong return to the export market in the coming crop season, with sentiment lifted by the prospects for a large harvest and sizeable stocks from earlier years.
While forecasts vary, several experts at the Russian Grain Union's XII International Grain Round said they expected wheat exports of 10 million tonnes, and that resistance from disgruntled North African and Middle Eastern clients who lost deliveries to last year's grain export ban will be limited.

French farm body sees plunge in wheat crop, exports
PARIS, June 8 (Reuters) - French soft wheat production is expected to fall 13 percent in 2011 to a four-year low after a drought-affected growing season, the country's farm office said on Wednesday in its first forecasts for the upcoming harvest.
FranceAgriMer estimated this year's French wheat crop would drop to 31 million tonnes from 35.6 million in 2010, with the average yield seen down 15 percent at 6.15 tonnes per hectare.

Rains return to the US Midwest, stall late planting
CHICAGO, June 8 (Reuters) - Showers will begin late Wednesday in the western U.S. Midwest and continue off and on through the weekend, ending a week-long stretch of mostly clear skies that promoted late planting, a forecaster said Wednesday.
"I would think the onset of this rain would put an end to any further corn planting. Farmers will either take prevent planting or go to soybeans," said Telvent DTN forecaster Mike Palmerino.

Canada farm department lowers crop area due flooding
WINNIPEG, Manitoba, June 8 (Reuters) - Canada's agriculture department has lowered its estimates of crop harvested areas, as flooding and excessive rain look to leave much land fallow this year.
Agriculture Canada released its grain and oilseed outlook, which is based on analysis not a farmer survey, late on Tuesday.

Monsoon to reach India's rice areas this weekend
NEW DELHI, June 8 (Reuters) - Monsoon rains are expected to arrive over India's main rice growing areas this weekend, which could help erase an initial delay in planting of the main summer food crop, weather office sources said on Wednesday.
Monsoon normally spreads to the rice belt of West Bengal and Orissa states in the east by the first week of June, but this year it had paused for about three days.

U.S. wheat rallies as crop forecasts shrink
CHICAGO, June 8 (Reuters) - Hot and windy weather is helping the Kansas wheat harvest progress rapidly, and yield reports are widely variable.
The weather likely stressing any late-filling hard red winter wheat in southern Kansas, but further northward conditions are generally favorable. Hot and dry weather permitting active harvest of winter wheat in drought-plagued Texas and Oklahoma.

US corn adds to gains ahead of USDA report
SYDNEY, June 9 (Reuters) - U.S. corn futures edged up adding to nearly 4 percent gains in the previous session ahead of a U.S. government report likely to forecast reduced corn output and a sharp reduction in old-crop stocks.
"Corn consumption in the U.S. has been quite high, particularly for use in ethanol production where demand has been quite sticky and has shown little sign of abating despite high prices," said Luke Mathews, an agricultural commodities strategist at Commonwealth Bank of Australia.

Late sowing, high demand trim US corn stocks - trade
WASHINGTON, June 9 (Reuters) - The U.S. government will forecast tighter corn supplies through the fall of 2012 thanks to a cold, rainy spring that took the top off this year's crop, analysts said ahead of an update of crop prospects.
Strong demand by livestock feeders and ethanol makers will mean smaller-than-expected supplies this summer, they said. And the new corn crop, even if it is record-large, would barely meet demand during the marketing year that opens on Sept. 1.

US corn adds to gains ahead of USDA report
SYDNEY, June 9 (Reuters) - Analysts expect the U.S. Department of Agriculture (USDA) monthly supply and demand report at 1230 GMT to cut the end 2010/11 estimate for U.S. corn stocks to 706 million bushels, from 730 million bushels forecast in May.
"Corn consumption in the U.S. has been quite high, particularly for use in ethanol production where demand has been quite sticky and has shown little sign of abating despite high prices," said Luke Mathews, an agricultural commodities strategist at Commonwealth Bank of Australia.

EU grain output revised down on low rain-attache
WASHINGTON, June 8 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in the European Union:
"With significantly less rainfall than normal recorded in the past three months in the key growing areas in France, Germany and the UK, farmers are reported to be increasingly concerned about both grain yield and quality, particularly in northwestern France. As such, the EU27 grain crop forecast is now revised downward to 277 million tonnes. The focus firmly remains on the EU ending stock number despite a reduction in forecast feed and industrial grain usage and in exports."

France To Help Drought-Hit Farmers With Around EUR1B-Prime Minister (Source: CME)
France will make available around EUR1 billion of aid through a variety of mechanisms to help farmers suffering from the impact of drought, French Prime Minister Francois Fillon said. "It is our independence and food security that is at stake," Fillon told senators. "In addition to emergency measures for transport and fighting speculation in animal feed, the President [Nicolas Sarkozy] has announced an expression of national solidarity that I would put at EUR1 billion," he said. Fillon said the figure is not very precise as it depends on the quantity of requests made by farmers. Firstly, the government will ensure that the necessary credits are available from its national agricultural emergency fund. A payment of EUR200 million will be made into the fund to respond to the most urgent cases, Fillon said. Secondly, the state will grant an exoneration from taxes on land without buildings for around EUR350 million.
Thirdly, the government will delay repayments of loans taken out by farmers in 2010 as part of state support for agriculture during the economic crisis, Fillon said. All the aid will be distributed through procedures that are accepted by the European Union, Fillon added.

Crop Weather Mayhem Delays U.S. Corn, Rice Planting as Prices Extend Gains (Source: Bloomberg)
When the overflowing Mississippi River breached Arkansas’s levees and flooded Michael Oxner’s farm in May, the waters didn’t just wipe out his hopes of planting 1,400 acres of rice. It destroyed last year’s crop, too. Water inundated the bins that held the rice he’d harvested in 2010, ruining 25,000 bushels and leaving a fermented smell that turned his remaining grain into pet food. Oxner lost $375,000 in 2010 rice alone. His rice land, along with 300 acres planted with corn, won’t be usable this season, Bloomberg Businessweek reports in its June 13 issue. Since it’s too late to plant more corn, the 2,000 acres he has left will go into soybeans, which grow faster than other crops but fetch less on the market. Even with soybeans, Oxner is cutting it close: Soybeans usually go into the fields in May. This year’s planting started on June 4.

Corn Trades Near Three-Year High Almost 40 Cents More Expensive Than Wheat (Source: Bloomberg)
Corn for July delivery traded little changed at $7.8475 a bushel after jumping as much as 3.8 percent yesterday to the highest level in three years following the U.S. Department of Agriculture’s estimate cutting supplies.

China a wild card for commodities- MF
NEW YORK, June 8 (Reuters) - China is a wild card for global commodity prices, but with a slowing economy it's a more likely trigger to a downdraft than the U.S. dollar, a senior analyst at brokerage MF Global said on Wednesday.
China has been the world's growth engine for the past decade. But with an annual growth rate close to double-digits and an undervalued currency, the government has been trying to tap down a rising pace of inflation.

China's commodity imports seen subdued in May
BEIJING, June 9 (Reuters) - Chinese trade data on Friday may show imports of major commodities were subdued in May, with an expected revival in copper shipments not yet underway and crude oil cargoes hit by higher prices after four months of bumper volumes.
The standout may be the soybeans trade, which is thought to have gathered pace in May after a lull in seemingly insatiable demand from the world's biggest buyer.

Coffee, cocoa firm, sugar slips, soft dollar underpins
LONDON, June 9 (Reuters) - ICE arabica coffee futures firmed early with upside capped by Brazil's harvest, while cocoa edged up, although potential further gains were limited by a steady flow of supplies from top producer Ivory Coast.     Liffe white sugar futures eased, consolidating after rising to a six-week high this week, driven by shortages during a period of high demand before Ramadan in August.

Cotton area jumps in India's Punjab, Haryana
CHANDIGARH, India, June 9 (Reuters) - Farmers in India's northern Punjab and Haryana states have raised area under cotton for 2011/12 cotton year beginning in October after they received higher prices this year, state farm ministry officials said.
Cotton marketing year in India runs from October to September, though farmers start cultivation from May onwards.

Brazil mills to shift more cane to ethanol-analyst
SAO PAULO, June 8 (Reuters) - Brazil's center-south could divert slightly more cane to ethanol production than initially expected in the current season as prices of the fuel remain buoyed by strong demand, Job Economia analysts said Wednesday.
After reaching record levels earlier this year, prices of the fuel slumped in early May with the start of the 2011/12 cane crop harvest but then stabilized again in recent weeks.

Brazil cocoa arrivals pick up after shaky start
SAO PAULO, June 8 (Reuters) - Deliveries of Brazil's mid-crop cocoa to local warehouses in the last week improved after appearing to stagnate in the previous fortnight, data from Bahia Commercial Association showed.
Arrivals from top cocoa state Bahia rose to 76,321 60-kg bags in the week to June 1 from 64,115 bags in the previous week, resuming their upward trajectory as the mid-crop advances.

US ethanol production climbs to 915,000 bpd-EIA
KANSAS CITY, June 8 (Reuters) - U.S. ethanol production rose to the highest level since late January in the latest reporting week, even as stocks dropped to their lowest in six weeks, the government said on Wednesday.
Ethanol output totaled 915,000 barrels per day (bpd) for the week ended June 3, up 6,000 bpd from the prior week, the Energy Information Administration said.

Ivory Coast cocoa prices firm on rising demand
ABIDJAN, June 8 (Reuters) - A purchase manager for an international exporter said local grinders were buying enough beans to run their factories with prices ranging from 775 CFA francs ($1.73) to 875 CFA francs compared with an average of 850 CFA francs the previous week.
"The price margin is wide because there is a lot of humidity and mouldy beans in the deliveries," the manager said, requesting not to be named.

India allows extra 1 mln bales of cotton exports
NEW DELHI/MUMBAI, June 8 (Reuters) - India allowed an extra one million bales of cotton exports on Wednesday and will review within two months whether to permit further overseas sales of the fibre at a time when global demand appears to be flagging.
India, the world's second biggest grower and exporter of the fibre, had already allowed 5.5 million bales (1 bale = 170 kg) in the current cotton year which started in October.

Mauritius 2011 sugar output seen falling 7 pct
PORT LOUIS, June 8 (Reuters) - Mauritius' sugar output is seen falling to 420,000 tonnes this year from 452,473 tonnes in 2010 largely due to a reduced area under cultivation and poor weather, the Chamber of Agriculture said on Wednesday.
Sugar, a centuries-old pillar of the Indian Ocean island's now almost $10 billion economy, accounts for roughly 3 percent of gross domestic product and is a major employer.

Sugar shortage to ease in Q4 with more EU supply
LONDON, June 8 (Reuters) - Acute refined sugar shortages are likely to ease in the fourth quarter of this year when fresh EU supplies are expected to enter the world market.
Liffe white sugar futures  have surged due to a cocktail of factors including high seasonal demand before Ramadan in August, port loading delays in Brazil, insufficient demand by refiners for raw sugar earlier this year and fears over tight EU supplies due to dry weather.

Indian mills to seek nod for more sugar exports
NEW DELHI, June 8 (Reuters) - India's sugar mills will soon seek government permission to export an additional half a million tonnes of the sweetner as output is expected to rise in the next season from October, the chief of a leading industry body said on Wednesday.
"Now, it makes sense to export another 500,000 tonnes this season," Abinash Verma, director general of the Indian Sugar Mills Association (ISMA), a producers' body, told Reuters in an interview.

Oil Near Highest This Month Heads for Weekly Gain on U.S. Economy, OPEC (Source: Bloomberg)
Oil traded near the highest this month in New York, heading for a weekly increase, after the U.S. trade deficit unexpectedly narrowed and OPEC failed to reach an accord on output targets. Futures were little changed, with the biggest weekly gain in four weeks, after the Commerce Department said the trade gap shrank 6.7 percent to $43.7 billion, the lowest since December. A separate report showed jobless claims unexpectedly rose. The Organization of Petroleum Exporting Countries on June 8 failed to agree quotas for the first time in at least 20 years.

Rising mining costs may trigger sector correction
LONDON, June 8 (Reuters) - Consensus forecasts for miners' earnings are failing to price in the full impact of rising costs, a gap that could trigger a correction in the sector's shares after the summer results season.
Rises in both capital and operating costs have become a growing problem for the booming industry, which faces ever higher price tags for everything from skilled labour to power, maintenance and even explosives and prefabricated buildings.

Gold Futures Rise as Higher Energy Costs Boost Demand for Inflation Hedge (Source: Bloomberg)
Gold rose for the first time in three days on speculation that higher energy costs will boost demand for the precious metal as a hedge against inflation. Palladium futures jumped to a three-month high. Crude oil topped $102 a barrel in New York after the Organization of Petroleum Exporting Countries failed to reach an agreement on production targets. Federal Reserve Chairman Ben S. Bernanke signaled this week that there won’t be a third round of so-called quantitative easing and U.S. interest rates will remain low.

METALS-Copper slips, China helps shore up sentiment
LONDON, June 9 (Reuters) - Copper was softer on Thursday as traders fretted about further signs of U.S. economic weakness, but prices were buttressed by expectations of higher demand from top consumer China.
Benchmark copper  on the London Metal Exchange was trading at $8,960 a tonne at 1010 GMT from $9,045 a tonne at the close on Wednesday.
The metal used widely in power and construction slid to near $8,500 a tonne last month on fears of dwindling consumption.

PRECIOUS-Gold steady; palladium firms on auto recovery
SINGAPORE, June 9 (Reuters) - Spot gold held steady on Thursday as a wait-and-see sentiment prevailed on future U.S. monetary policy moves, while palladium strengthened as the automobile sector recovers from the Japan earthquake in March.
The dollar index edged lower, as the euro was underpinned by expectations that the European Central Bank will likely flag a July rate hike at a meeting later in the day.

Copper Falls to One-Week Low as Rising Global Interest Rates May Curb Use (Source: Bloomberg)
Copper fell to a one-week low on speculation that demand will wane as central banks worldwide raise borrowing costs to curb inflation. European Central Bank President Jean-Claude Trichet signaled an interest-rate increase next month, saying “strong vigilance” is warranted to contain consumer prices. Last month, nations from Norway to India boosted borrowing costs. Inflation risks in the U.S. are “clearly to the upside,” Philadelphia Federal Reserve Bank President Charles Plosser said today.

Chile copper mine protest drags on, no end in sight
SANTIAGO, June 8 (Reuters) - A strike by contract workers that has halved output at the world's No. 5 copper mine, El Teniente in Chile, entered its 15th day on Wednesday with no end in sight as wage talks stalled, protest leaders said.
Mine owner Codelco slowed output at the world's top underground copper operation over the weekend after protests by contractors turned violent and forced staff workers to stay home.

Baosteel cuts July steel product prices by 100-200 yuan/tonne
BEIJING, June 9 (Reuters) - Leading Chinese steelmaker Baoshan Iron and Steel  will cut prices for July delivery of its major products by 100-200 yuan ($15-30) per tonne, it said on Thursday.
It said in an announcement on its website that prices of hot-rolled products would be cut by 200 yuan compared with June, while cold-rolled steel prices would fall by 100 yuan

Africa may turn major iron ore exporter after 2020
CAPE TOWN, June 8 (Reuters) - Africa, regarded as the next iron ore frontier, is only likely to boost global supply from 2020 and only if countries overcome infrastructure and political hurdles, analysts and producers said this week.
The market for iron ore, used in stainless steel production, is the second biggest commodity trading market in the world, valued at some $150 billion, said Phillip Killicoat, iron ore manager at Credit Suisse commodities.

20110610 0949 Soy Oil & Palm Oil Related News.

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

MPOB Official Data for the month of May 2011 vs Apr 2011
Export up 4.3% at 1.4 million tonnes.
Stock up 14.8% at 1.92 milion tonnes.
Output up 13.7% at 1.74 million tonnes.

ITS CPO export up 22% to 395,041 tonnes for the period of 1~10 Jun 2011.
SGS CPO export up 27.2% to 411,852 tonnes for the period of 1~10 Jun 2011.

Soybeans (Source: CME)
US soybean futures ended lower, driven by government data showing less threatening year-end supplies. Larger projected inventories reported by U.S. Department of Agriculture generated price pressure, with increased South American production and lower export forecasts painting a bearish supply picture. The report encouraged traders to trim premium from the market, after rallying prices on thoughts of lower supplies, said Mike Zuzolo, president Global Commodity Analytics and Consulting in Lafayette, Ind.

Soybean Meal/Oil (Source: CME)
Soy product futures ended mixed. Soymeal managed to withstand weakness from soybeans on lingering concerns about tighter meal supplies in the western Midwest on the potential for supply disruptions from Missouri River flooding, analysts said. Soyoil drifted lower, succumbing to pressure from increased supply forecasts from USDA. CBOT July soymeal ended up 0.03% at $372.90/short ton, and July soyoil settled down 0.9% at 57.40 cents/pound.

Palm oil gains ahead of USDA; crude supports
JAKARTA, June 9 (Reuters) - Malaysian palm oil climbed more than 1 percent on Thursday as investors positioned themselves ahead of the release of a U.S. government agriculture report later, with additional support from strong crude prices.
"We've been down a couple of days but there is a strong showing in crude," said one trader. "People are taking this as an opportunity to cover positions because it offers protection against the USDA tonight.

Missouri River floods stricken agribusiness in Midwest
CHICAGO, June 8 (Reuters) - From stranded shipments of soymeal feed to the potential for vast swaths of crop land to be flooded, high water on the Missouri River is disrupting trade and could cost millions of dollars in lost revenue for agribusinesses in the U.S. Midwest, industry sources said.
The situation is unfolding on the heels of massive flooding by the Mississippi River last month that submerged large areas of crops in the South at a time of tight grain supplies.

Brazil soy crop raised again to record high -gov't
SAO PAULO, June 8 (Reuters) - Helped by favorable weather, Brazil harvested a record soy crop in the 2010/11 season, about 1.4 million tonnes bigger than that forecast a month ago, government crop supply agency Conab said on Wednesday.
Output reached an unprecedented 75 million tonnes, up from the 73.6 million tonnes projected in May, Conab said in its ninth estimate of the crop, whose harvest finished last month.

20110609 1921 FCPO EOD Daily Chart Study.

FCPO closed : 3287, changed : -29 points, volume : higher.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : fall lower, seller taking small exposure.
Support : 3270, 3250, 3200, 3150 level.
Resistance : 3300, 3350, 3420, 3450 level.
Comment :
142 points range FCPO market closed recorded loss 4 days in a row with better volume transacted while soy oil overnight closed about the same and currently trading weaker.
Factor to watch will be tomorrow official MPOB May 2011 data and tonight U.S.Department of Agriculture reports.
Daily chart formed a huge down doji bar candle with longer lower shadow closed near lower Bollinger band level after market opened higher, tested above resistance level and slide down slowly followed by last hour sell down activities triggered lots of long covering stops order and recovered upwards to closed off the low of the day.
Technical reading suggesting a side way range bound little upside 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.

20110609 1854 FKLI EOD Daily Chart Study.

FKLI closed : 1552 changed : +3 points, volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakening, buyer closing position.
Support : 1550, 1540, 1530, 1515 level.
Resistance : 1565, 1580, 1590, 1600 level.
Comment :
FKLI closed recorded small gain with lower volume changed hand doing 1 point premium compare to cash market that closed recorded minor loss and Asia region closed mostly lower, European currently trading little higher while overnight U.S. market continue to test lower.
Unsolved U.S. debt issue, no immediate stimulus plan to counter economy slowdown and ECB interest rate decision seems to be the factor to watch. Having said that, trader should anticipate an U.S. market technical rebound t take place soon after recent fall.
Daily chart formed an up doji bar candle with longer upper shadow closed near middle Bollinger band level after market opened 1 point above yesterday close, edge up higher slowly, and fall off lower surrender more than half of the intraday gain but still managed to closed back to above crucial support level.
Again(hate to repeat this but well that's the fact), chart reading still showing a correction range bound upside 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.

20110609 1811 Global Market & Commodities Related News.

Asia stocks dip, euro pushes higher before ECB
HONG KONG, June 9 (Reuters) - Asian stocks slipped for a sixth straight day on Thursday as investors cut exposure to risky assets on signs the global economy is losing steam, with higher oil prices casting a shadow after OPEC failed to reach a deal to boost output.
"U.S. growth may be softer than we thought at the start of the year," said Goldman's economists in a note to clients. "However, it is less clear that the same is true elsewhere around the world."

Brent oil rises to $118 on OPEC, US crude stocks
SINGAPORE, June 9 (Reuters) - Brent crude rose to $118 on Thursday after Saudi Arabia failed to convince OPEC to raise output targets, and data showed U.S. crude stocks fell sharply last week.
"What this means is that there will be less spare capacity to handle another unforeseen outage," said Tony Nunan, a risk manager with Tokyo-based Mitsubishi Corp. 

US corn adds to gains ahead of USDA report
SYDNEY, June 9 (Reuters) - U.S. corn futures edged up on Thursday, adding to nearly 4 percent gains in the previous session ahead of a U.S. government report likely to forecast reduced corn output and a sharp reduction in old-crop stocks.
"Corn consumption in the U.S. has been quite high, particularly for use in ethanol production where demand has been quite sticky and has shown little sign of abating despite high prices," said Luke Mathews, an agricultural commodities strategist at Commonwealth Bank of Australia.

Brazil cocoa arrivals pick up after shaky start
SAO PAULO, June 8 (Reuters) - Deliveries of Brazil's mid-crop cocoa to local warehouses in the last week improved after appearing to stagnate in the previous fortnight, data from Bahia Commercial Association showed.
Arrivals from top cocoa state Bahia rose to 76,321 60-kg bags in the week to June 1 from 64,115 bags in the previous week, resuming their upward trajectory as the mid-crop advances.

Russian wheat offered in port, export outlook up
GELENDZHIK, Russia, June 8 (Reuters) - The Russian grain industry expects to make strong return to the export market in the coming crop season, with sentiment lifted by the prospects for a large harvest and sizeable stocks from earlier years.
While forecasts vary, several experts at the Russian Grain Union's XII International Grain Round said they expected wheat exports of 10 million tonnes, and that resistance from disgruntled North African and Middle Eastern clients who lost deliveries to last year's grain export ban will be limited.

Gap cutting cotton vendors to save money
SAN FRANCISCO , June 8 (Reuters) - Gap Inc  will cut back on the number of cotton vendors it deals with and develop more direct relationships with mills as it tries to rein in soaring yarn and fabric costs, Chief Executive Glenn Murphy said on Wednesday.
Murphy also admitted at an investor conference that the clothing retailer made mistakes recently and said its flagship brand needs significant changes in North America.

Brazil soy crop raised again to record high -gov't
SAO PAULO, June 8 (Reuters) - Helped by favorable weather, Brazil harvested a record soy crop in the 2010/11 season, about 1.4 million tonnes bigger than that forecast a month ago, government crop supply agency Conab said on Wednesday.
Output reached an unprecedented 75 million tonnes, up from the 73.6 million tonnes projected in May, Conab said in its ninth estimate of the crop, whose harvest finished last month.

French farm body sees plunge in wheat crop, exports
PARIS, June 8 (Reuters) - French soft wheat production is expected to fall 13 percent in 2011 to a four-year low after a drought-affected growing season, the country's farm office said on Wednesday in its first forecasts for the upcoming harvest.
FranceAgriMer estimated this year's French wheat crop would drop to 31 million tonnes from 35.6 million in 2010, with the average yield seen down 15 percent at 6.15 tonnes per hectare.

Copper steadies on weak dollar ahead of ECB meeting
SINGAPORE, June 9 (Reuters) - London copper steadied on Thursday after the previous session's 1 percent loss, while Shanghai rose 0.3 percent, supported by a weaker dollar ahead of a European Central Bank rate decision.
"There is not much life or excitement left in copper. Trade recently has been about jobbing in ranges. I don't like to talk about summer doldrums, but that's exactly where we are stuck," a trader in Singapore said.

Australia says Fukushima disaster won't curb uranium demand
SYDNEY, June 9 (Reuters) - Australia said the Fukushima nuclear disaster in Japan would not curb the world's appetite for uranium and predicted its exports will continue to rise as its develops more mines.
Spending on exploration in Australia to find more uranium is expected to rise by more than third this year, Australia's minister for mines, Martin Ferguson, said in a speech to geologists on Thursday.

Miners scour Australia for iron ore finds far from BHP, Rio
SYDNEY, June 9 (Reuters) - Australian prospectors are scouring remote outback locations for new sources of iron ore to rival the big western lodes dominated by Rio Tinto   and BHP Billiton  , spurred on by China's swelling appetite.
Analysts expect most of Australia's iron ore to keep coming from Western Australia's Pilbara region, the world's single largest deposit, which is seen producing about 400 million tonnes this year.

Gold flat; palladium firms on auto recovery
SINGAPORE, June 9 (Reuters) - Spot gold was flat on Thursday as a wait-and-see sentiment prevailed on future U.S. monetary policy moves, while palladium strengthened as the automobile sector recovers from the Japan earthquake in March.
"The market is at a loss. We need to wait for the verdict on whether there will be further quantitative easing from the Fed to get a clear sense of the future direction," said a Tokyo-based trader.

20110609 1802 Global Economic Related News.

Global: World Bank sees overheating risks with growth of 3.2% this year. 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. The Washington-based institution lowered its growth forecast for the world economy this year to 3.2% from a January estimate of 3.3%, to reflect Japan's earthquake and political unrest in the Middle East and North Africa. The World Bank left unchanged a prediction for a global rebound to 3.6% in 2012. (Source: Bloomberg)

U.S: Fed says growth was 'steady' in most areas, slowed in some as consumers contended with higher food and fuel prices while shortages of parts reduced auto production. Four of the 12 regions reported slower growth. (Source: Bloomberg)

Germany: Industrial production unexpectedly declined in April, led by a drop in construction output. Production fell 0.6% MoM from March, when it rose a revised 1.2% MoM. In the year, production rose 9.6% YoY when adjusted for working days. (Source: Bloomberg)

U.K: Moody's Investors Service said the outlook on the U.K's Aaa rating is "stable," according to a spokesman for the ratings company. "Our central scenario is that the U.K. rating remains Aaa and the outlook is stable," Francesco Meucci, Moody's deputy head of media relations in Europe, Middle East and Africa, said in a phone interview from Paris. "However, slower growth combined with weaker-than-expected fiscal consolidation efforts could cause the U.K's debt metrics to deteriorate to a point where we would reconsider our stance." (Source: Bloomberg)

Greece: Jobless rate breached 16% for first time in March, extending a record high as the nation's economy remained mired in the third year of a recession. The jobless rate rose to 16.2% from 15.9% in February. (Source: Bloomberg)

Brazil: Raises rate to 12.25% after CPI exceeds target range. Brazil's central bank raised its benchmark interest rate for a fourth straight meeting after consumer prices exceeded the upper limit of its target range for the first time since 2005. Policy makers, led by central bank President Alexandre Tombini, raised the Selic rate by a quarter point to 12.25%. (Source: Bloomberg)

Japan: 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 JPY 1.33tr (USD 16.6b) in Japanese long-term bonds in April, the biggest amount since records began in January 2005, according to data released in Tokyo by Japan's Ministry of Finance. The nation sold a net JPY 1.47tr of short-term debt, the data shows. (Source: Bloomberg)

Japan: Current account surplus narrowed in April as supply-chain disruptions after a record earthquake curbed exports. The gap shrank 70% YoY to JPY 406b (USD 5.1b), the Finance Ministry said in Tokyo. (Source: Bloomberg)

Taiwan: Exports rose at the slowest pace in 19 months in May after the earthquake in Japan disrupted trade flows in Asia and demand from China eased. Shipments abroad increased 9.5% YoY, compared with 24.6% YoY in April. Imports rose 19.3% YoY for a trade surplus of USD1.22b. (Source: Bloomberg)

Australia: Home loan approvals rose in April by the most since March 2009. The number of loans granted to build or buy houses and apartments gained 4.8% MoM from March, when they fell a revised 1.1% MoM, the statistics bureau said in Sydney. (Source: Bloomberg)   

20110609 1758 Malaysia Corporate Related News.

KLCI chart reading :

correction range bound upside biased.

TNB: Buys power from Singapore to ensure supply security. Tenaga Nasional Bhd (TNB) is buying power from Singapore-based PowerSeraya Ltd, a unit of YTL Power International Bhd, due to a shutdown of Petroliam Nasional Bhd-owned gas production platforms for maintenance and dwindling gas supply. (Source: The Star)

BJTOTO: May roll out new game on this weekend. Berjaya Sports Toto Berhad is expected to introduce a new game which is believed to be something similar to the 4D Jackpot introduced by Magnum 4D in September 2009. It is likely to help the company to grow its sales and expand its market share. (Source: Business Times)

Latexx: Accepts revised offer from YTY. Rubber gloves maker Latexx Partners Bhd's board has accepted a revised offer of RM1.25b (initially RM1.35b) on its proposed merger with YTY Industry Sdn Bhd. (Source: Bursa Malaysia)

Dijaya: Buys land for RM385m. Dijaya Corp Bhd has acquired 88.5 acres of freehold land in Pekan Country Heights, Selangor, from Chunghwa Picture Tubes (Malaysia) Sdn Bhd for RM385.5m. The land would be transformed into a mixed development comprising residential and commercial elements with an expected gross development value (GDV) of RM2.5b. (Source: The Edge Financial Daily)

MYEG: Set for Kazakh e-services venture. MY E.G. Services Bhd (MYEG) is set to collaborate with Kazakhstan company National Information Technologies JSC (NIT) to introduce e-government services to the republic this year in its first overseas venture. (Source: The Star)

AmFirst: To buy 2 Cyberjaya buildings. AmFirst Real Estate Investment Trust is expected to sign a deal to buy two commercial buildings in Cyberjaya with a combined estimated value of over RM130m. It currently has 6 assets worth RM1.02b. The properties, which are a couple of years old, were identified as Prima 9 and Prima 10. They are both located within the Prima Avenue II development in Cyberjaya. (Source: Business Times)  

20110609 1408 Global Market Related News.

GLOBAL MARKETS: Asia stocks dip, euro pushes higher before ECB
HONG KONG, June 9 (Reuters) - Asian stocks slipped for a sixth straight day on Thursday as investors cut exposure to risky assets on signs the global economy is losing steam, even as oil prices and the high-yielding Australian dollar pushed higher.
The Federal Reserve's beige book summary of economic conditions confirmed that the economy slowed in May due to higher gasoline prices and the supply chain disruptions following Japan's earthquake and tsunami in March.

OIL: Oil jumps as OPEC talks fail, eyes Saudi solo hike
NEW YORK, June 8 (Reuters) - Oil prices jumped on Wednesday after OPEC failed to reach a deal to increase output, raising fears of supply shortages later this year that could fuel a further price rally, imperiling the economic recovery.
"Oil prices rising over $120 per barrel will have a severe impact on the world economy, and we would continue to see sluggish numbers coming out of the US and other countries," said Thorbjorn Bak Jensen, oil market analyst at A/S Global Risk Management Ltd.

NATURAL GAS: Natural gas ends up, front hits 4-1/2-mth high
NEW YORK, June 8 (Reuters) - U.S. natural gas futures ended with modest gains on Wednesday, with strong heat stretching from Texas to New York driving the front month to its highest level since late January despite milder weather forecasts for next week that should slow demand.
"Heat continues to support the contract, but the surge at the end was due to light expectations for storage (build) on Thursday relative to the norms," Gelber & Associates analyst Pax Saunders said.

EURO COAL: S.Africa discount deepens on lack of buying
LONDON, June 8 (Reuters) - Fixed coal prices remained robust on Wednesday, bolstered by a $2 rise in oil but South African FOB coal values are starting to feel downward pressure because of a lack of buying interest in the Atlantic and Pacific.
"It makes no sense to be shipping contracted South African coal to Europe, the contango is too small to be worth the stockpiling costs," one European utility source said.

COMMODITIES: OPEC twist lifts oil; corn jumps ahead of USDA
NEW YORK, June 8 (Reuters) - Commodities gained broadly on Wednesday, with oil rising as much as 2 percent before closing off its peak after other OPEC members resisted top producer Saudi Arabia's plan to hike output and moderate prices.
"This is one of the worst meetings we have ever had," said Ali al-Naimi, oil minister of Saudi Arabia, the most influential member in OPEC.

20110609 0946 Renewable Energy Related News.

OERLIKON WINS LANDMARK ASIAN SOLAR ORDER
ZURICH, June 1 (Reuters) - Swiss engineer Oerlikon  has won a first 100 million euro ($143.7 million) order for its new solar production line and may have more in the pipeline, a boost for its recovery from near bankruptcy last year.
This is the first order to install Oerlikon's new 120 megawatt line producing thin film silicon modules and comes from a new customer in Asia, Oerlikon said on Wednesday.

CANADIAN SOLAR TO BUILD 600 MW SOLAR CELL PLANT IN CHINA
June 1 (Reuters) - Canadian Solar Inc  said it would build a 600 megawatt photovoltaic cell production factory in Suzhou in Eastern China, a day after the solar panel maker announced plans to set up a wafer plant in the same area.
The company said it would build the factory with state-owned enterprise Suzhou New District Economic Development Group Corp [SNDED.UL] and Suzhou Science and Technology City Development Co Ltd.

IBERIA SPOT POWER DOWN, WIND STRONGER THAN FORECAST
MADRID, June 1 (Reuters) - Stronger winds than expected hauled down benchmark Iberian wholesale power prices for the second day in a row on Wednesday by forcing costlier gas-burning generators off line.
National grid operator REE  estimated that Spanish wind parks -- Europe's most productive in 2010 -- were producing 10,339 megawatts by mid-afternoon, above a peak of 9,000 MW forecast on Tuesday.

JAPAN TAKES CANADA TO WTO OVER GREEN-POWER RULES
GENEVA, June 1 (Reuters) - Japan asked the World Trade Organization on Wednesday to form a legal panel to decide whether
Canadian provincial backing for solar and wind energy projects gives an unfair advantage to domestic equipment makers.
Japan has given up direct attempts to resolve a spat over an Ontario scheme that guarantees prices for renewable energy as long as it is generated with Canadian-made equipment, Japan's ambassador to the WTO said in a letter to the chairman of the WTO's disputes division.

TIANJIN GRID OPERATOR WARNS OF POWER SHORTAGE, SAYS UHV LINES A SOLUTION
BEIJING, June 2 (Reuters) - Electricity shortfalls in Tianjin, an industrial city near Beijing, may reach 1.5 gigawatts this summer, or 13 percent of the expected maximum power load, local grid operator warned on Thursday.
Tianjin Electrical Power Corp, a unit of State Grid Corp of China (SGCC), the country's dominant power distributor, forecast the maximum power load in Tianjin of 11.4 GW to emerge in late July or early August.

WORLD SHOULD DOUBLE RENEWABLE ENERGY BY 2030-UN
OSLO, June 2 (Reuters) - The world should more than double reliance on renewable energy by 2030 as part of goals to slow climate change in a drive that will need strong backing from the private sector, a senior U.N. official said on Thursday.
"The new goal is to have 30 percent of energy supplies from renewable sources by 2030," Kandeh Yumkella, head of the U.N. Industrial Development Organization (UNIDO), told Reuters in a telephone interview.

ISRAEL UNVEILS FIRST OF 50 SOLAR POWER FIELDS
JERUSAELM, June 5 (Reuters) - Israel's Arava Power unveiled the country's first commercial solar power plant on Sunday, showing it off to government ministers and dignitaries, and announced plans to erect dozens of other solar array fields, whose total cost could reach $2 billion.
The 100 million-shekel ($30 million), 4.95 megawatt plant in the agricultural community Kibbutz Keturah which is due to be hooked up to the national grid in the next few weeks, is the first of about 50 photovoltaic power fields that Arava said it will build throughout the southern Negev desert by the end of 2014.

ITALY SOLAR CAPACITY 9,000-10,000 MW END-2011
MILAN, June 6 (Reuters) - Italy's total grid-connected solar capacity is expected to rise to 9,000-10,000 megawatts at the end of 2011, the head of the European Photovoltaic Industry Association told Reuters on Monday.
Ingmar Wilhelm said that 2011 would be an exceptional peak year for solar capacity development in Italy, which should see an additional 6,500 megawatts of capacity.

20110609 0945 Biofuels Related News.

COLUMN-US ETHANOL RIGHT TO WORRY OVER DDG EXPORT PACE: MAGUIRE
CHICAGO, June 8 Reuters) - After climbing from less than 100,000 tonnes in January 2006 to more than 1 million tonnes in July 2010, U.S. exports of distiller's dried grains (DDGs) -- a byproduct of corn-based ethanol production -- were widely considered a major boon for the U.S. ethanol industry that alleviated pressure on the U.S. corn market by offering global animal feeders with a high-protein alternative to corn.
But DDG exports have fallen sharply since, with the latest month's shipments down on the same period a year ago. Part of the slowdown can be attributed to top export market China's anti-dumping probe into U.S. DDGs launched in December. But a surge in DDG prices to record highs is also hurting demand, and highlights the frailty of this burgeoning sector that less than a year ago was being heralded as a dependable source of long-term revenue for U.S. ethanol makers.

A GOLDEN AGE FOR BRAZIL ETHANOL? NOT QUITE
SAO PAULO, June 6 (Reuters) - By most measures, this should be a golden age for sugarcane ethanol in Brazil. Yet, despite high prices for the biofuel and a massive expansion in the domestic fleet of cars that use it, Brazil's ethanol industry is struggling with stagnant investment, insufficient supply growth and a government that can't seem to figure out whether to treat it as a friend or a foe.
Efforts to resolve the impasse will be front and center at a major Brazil ethanol summit that starts on Monday. The event brings together government officials including Energy Minister Edison Lobao, global energy executives, and members of the Unica ethanol industry group, which is hosting the event.

BRAZIL SEEKS TO BOOST STAGNANT ETHANOL INDUSTRY
SAO PAULO, June 6 (Reuters) - Brazil's government unveiled new financing and other incentives for sugar cane ethanol production on Monday, vowing to work closely with the private sector to boost production in an industry that has struggled recently despite its immense promise.
The state-run development bank BNDES announced that it would provide 30 billion to 35 billion reais ($19 billion to $22 billion) to finance expansion in the sugar cane sector through 2014, a major bet equivalent to about two-thirds of the industry's annual output. 

DREYFUS TO INVEST IN ARGENTINE BIOFUEL PLANT-SOURCE
BUENOS AIRES, June 7 (Reuters) - Global commodities firm Louis Dreyfus will invest $40 million to build a biodiesel plant in Argentina's Rosario area, one of the world's biggest grains hubs, a company source said on Tuesday.
The South American country is one of the biggest global exporters of biodiesel, made using soyoil. Argentina is also the world's No.1 soyoil and soymeal supplier.

KHOSLA CHIDES BIG OIL FOR LACK OF BIOFUELS APPETITE
SAO PAULO, June 6 (Reuters) - Billionaire Vinod Khosla took Big Oil to task on Monday for taking more risk on a long-odds deepwater oil well than on the future of biomass energy that he says will change the world within decades.
Speaking the 2011 Brazilian Ethanol Summit in Sao Paulo, the co-founder of Sun Microsystems said that the world is on the verge of a technological breakthrough in cost-effectively converting crops like sugarcane into most of the fuels and consumer products that petroleum now provides.

BRAZIL GIVES FIRST DETAILS OF ETHANOL REGULATION
SAO PAULO, June 7 (Reuters) - Brazil's government will begin implementing fresh regulations to its ethanol market next month by requiring producers and distributors to fix one-year supply contracts, in a bid to curb shortages and price spikes, a top industry official said on Tuesday.
The regulations being implemented featured no plans for more onerous rules such as production targets, Allan Kardec, supply director for Brazil's National Oil and Biofuels agency or ANP.

BRAZIL ETHANOL MILLS SEE COSTS AS KEY TO SURVIVAL
SAO PAULO, June 7 (Reuters) - Cut costs, or fade away.
That was the challenge facing Brazilian sugarcane ethanol producers as they gathered on Tuesday for the second day of a major industry conference and debated ways to ensure that the biofuel lives up to its enormous hype in the coming decade.
Ethanol production costs have soared in recent years, but the rise cannot be fully passed along to Brazilian consumers because prices for gasoline at the pump have been essentially held down by the government since 2002. When ethanol prices rise too much, drivers tend to switch to gasoline.

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.
After being forced to import gasoline in early 2010 and again earlier this year, a concerned Brazilian government set into motion a reform of regulation for the ethanol industry with the hope of boosting supply of the biofuel.

CARGILL, BRAZIL'S USJ CREATE JV FOR SUGAR, ETHANOL
SAO PAULO, June 2 (Reuters) - U.S. agribusiness giant Cargill said on Thursday it has created a joint venture with Brazilian cane group Usina Sao Joao (USJ) to operate in sugar, ethanol and bioelectricity.
Each company will have 50 percent of the venture, according to Cargill, which did not disclose financial details of the transaction.