Corn (Source: CME)
US corn futures end lower on outside-market pressure and lackluster demand. Disappointment in the FOMC's decision not to take additional steps at this time to stimulate the economy dampened investor enthusiasm, encouraging traders to take profits following Tuesday's late rally, analysts say. A larger-than-expected crop forecast from Informa Economics added to the pressure, along with a lack of fresh demand. Exports have been weak recently. CBOT December corn ends down 1.4% at $6.45/bushel.
Wheat (Source: CME)
US wheat futures end mostly lower on outside-market pressure and a lack of fundamental support. Prices slumped along with corn as investors were disappointed by lack of stimulus from today's FOMC statement, analysts say. Meanwhile, export demand for US wheat remains weak due to competition from the Black Sea region and rain--and even snow--in the southern Plains should help a winter-wheat crop that is off to a slow start because of this year's drought. CBOT December wheat ends down 6 1/2c at $6.23 1/2 a bushel as KCBT December falls 5 1/2c to $7.13, However, MGEX December ends up 4 1/2c at $9.10 1/4.
Rice (Source: CME)
Losses accelerate in US rice futures, as market ends sharply lower amid lack of export demand for US rice and ample world supplies. Prices have fallen four straight days, most sharply, as prices end at session lows. CBOT Nov. rice ends down 40c, or 2.4%, to $16.14, a three-week low.
US corn, wheat fall on Greek debt woes; soy rebounds
SINGAPORE, Nov 2 (Reuters) - U.S. corn and wheat futures ticked lower, giving up previous session's gains as investors shunned riskier assets following renewed concerns over Greece's debt crisis and a slowdown in China's manufacturing.
"We have such a heavy macro-market influence, but agricultural commodities seem to be supported, particularly corn around these levels," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne.
October rains good for Argentine corn, soy
BUENOS AIRES, Nov 1 (Reuters) - October rains in Argentina's main farming areas helped corn crops develop at a healthy pace while setting the stage for smooth November soy plantings, a meteorologist said on Tuesday.
The showers provided relief after a dry September sparked worries that the La Nina weather disturbance might cause problems for the development of corn plants and the sowing of 2011/12 soy, most of which will be planted this month.
Mixed weather signals for waning U.S. harvest
CHICAGO, Nov 1 (Reuters) - Better harvest weather is moving into the eastern U.S. Midwest this week while wetter weather will slow the remaining harvest in the west, an agricultural meteorologist said on Tuesday.
"Rains by Thursday in the central Midwest will slow down harvest and while there will be some rain late Thursday in the east, after that there is improving weather," said Don Keeney, meteorologist for MDA EarthSat Weather.
Viterra's South Australia Unit Shipped Record Grain In 2010-11 (Source: CME)
Viterra Inc.'s South Australia-based unit said that it shipped record export volumes of grain, mostly wheat, in the last marketing year. Viterra owns and operates a string of ports in South Australia as a result of its purchase of ABB Grain in 2009. The nearly 8 million metric tons of grain shipped out in the year ended Sept. 30 demonstrates strong demand for the state's grain, Dean McQueen, the company's executive manager for grain, said in a statement. Port Adelaide and Outer Harbour combined shipped nearly 3 million tons of grain in 2010-11, Port Lincoln exported 2.65 million tons, up by more than a third from the previous record, while Thevenard's exports reached 479,000 tons, Port Giles's 972,000 tons and Wallaroo's 982,000 tons. Viterra didn't provide year-earlier figures. "We expect widespread harvesting to begin shortly with above-average yields expected," McQueen said, adding that 1.7 million tons of grain are being carried over from the last season in Viterra's storage system.
Soybeans, Corn Called Higher as U.S. Farmers Cut Sales; Wheat May Advance (Source: Bloomberg)
What follows are opening calls for U.S. grain and oilseed markets.
-- Soybean futures may open 10 cents to 12 cents a bushel higher on the Chicago Board of Trade as U.S. farmers withdraw offers after prices fell yesterday to a three-week low, Jim Gerlach, the president of A/C Trading Inc. Fowler, Indiana, said in a telephone interview. Soybean-oil futures are expected to open 0.25 cent to 0.35 cent higher, and soybean-meal futures may open up $3 to $4 per 2,000 pounds.
-- Corn futures are called to open 2 cents to 4 cents a bushel higher on the CBOT amid speculation that the government will reduce its estimate of the U.S. crop in a report on Nov. 9, Gerlach said.
China Record Corn Crop Still Failing to Meet Demand for Feed: Commodities (Source: Bloomberg)
China reaped its seventh record corn crop in eight years in the harvest now ending. That still won’t be enough to meet demand, driving a fivefold gain in imports as prices head for the highest-ever annual average. Production reached 189.2 million metric tons in the harvest that began in September, 6.7 percent more than a year earlier, according to a survey of growers in the seven main producing regions carried out by Geneva-based SGS SA for Bloomberg. Imports in the marketing year that began last month may jump to 5 million tons from 1 million tons, according to the median estimate of 10 analysts and traders surveyed by Bloomberg.
While the supply predicted in the SGS survey would exceed the U.S. Department of Agriculture’s estimate by more than 7 million tons, rising imports show farmers are failing to grow enough grain for livestock feed. The fivefold expansion in China’s economy in the past decade reported by the World Bank spurred a change in diets. The dairy herd almost tripled since 2000, and per capita pork consumption in the nation of 1.34 billion people rose 26 percent, USDA estimates show.
Wheat, Corn Futures Decline on Signs of Increasing Global, U.S. Production (Source: Bloomberg)
Wheat and corn futures fell for the second time this week on signs that grain supplies may be ample as countries around the world step up production. Soybeans were little changed. Global wheat production may be 688.7 million metric tons this year, Informa Economics Inc., an agriculture research company, said today in a note to clients. That was 1.1 percent more than the Department of Agriculture’s forecast last month. Output may climb to 694.2 million tons next year, Informa said. The company raised its forecast for the U.S. corn harvest to 12.5 billion bushels, or 0.9 percent above the USDA projection. “We keep finding more and more wheat, even though we’re using a lot,” Mike Zuzolo, the president of Global Commodity Analytics & Consulting in Lafayette, Indiana, said in a telephone interview. “Corn is likely to follow wheat because of ample supplies.”
China Corn Output Rises 6.7% to Record, Tops Forecast, Farmer Survey Shows (Source: Bloomberg)
Corn production in China, the world’s largest grower and consumer after the U.S., probably rose 6.7 percent to a record this year as farmers planted more and favorable weather boosted yields, a survey showed. Output jumped to 189.18 million metric tons (7.5 billion bushels) from 177.24 million last year, based on a survey of the seven largest corn-growing provinces during the harvest in September and October by Geneva-based SGS SA for Bloomberg. The estimate tops the 182 million tons forecast by the U.S. Department of Agriculture on Oct. 12. Chinese growers may boost acreage 4.6 percent in 2012, SGS said.
Domestic production will reach a record for the seventh time in eight years after farmers planted 6.1 percent more land than in 2010, according to the survey of farmers in the northeast provinces of Jilin, Heilongjiang, Shandong, Henan, Hebei, Liaoning and Inner Mongolia from Sept. 26 to Oct. 20. China is expanding domestic supply as rising meat and dairy consumption boost demand for grain used as livestock feed.
China Key Food Prices Fall On Week; Vegetables Lead -Ministry (Source: CME)
Key food prices fell in the week to Sunday, the Ministry of Commerce said. Food items account for about a third of China's consumer price index, and price movements in the sector are closely watched as the government tries to contain inflation. Vegetable prices were 2.2% lower compared with a week earlier, while pork prices fell 1%. Egg prices slipped 0.6%, though beef and mutton prices rose about 0.5%, it said. Edible oil prices held steady compared with the previous week, the ministry said. 'Food of the Future' Has One Hitch: It's All But Inedible. The breadfruit is a remarkable food: The prickly football-size pod is full of nutrients and energy. Growing on one of the earth's highest-yielding trees, it could even help alleviate world hunger, backers believe. There's just one problem: It tastes remarkably bland. "Like undercooked potatoes," says Diane Ragone, a Kauai horticulturalist.
"You have to kind of fool people to get them to try it," says Jacqueline Lau, corporate chef for Roy's Restaurant chain's Hawaii restaurants. It's time the world learned to eat it anyway, says Ms. Ragone. After hopping around 51 Pacific islands to find different breadfruit types, she has assembled more than 120 varieties in a large grove at a National Tropical Botanical Garden site on Maui. Ms. Ragone and Ms. Lau are part of a movement among breadfruit fans here to teach people to like the tasteless stuff. They have started in Hawaii by pitching it to cooks -- professional and domestic -- and plan outreach campaigns for the fruit. Ms. Ragone suggests sauteing breadfruit slices in butter until golden brown, then sprinkling cheese to make breadfruit nachos.
"Think of sauteed breadfruit as a platform for any kind of cuisine or flavor," she says. The breadfruit's proponents say it has unique qualities that could help feed the world's poor. One tree, a member of the fig family, can produce 450 pounds of fruit per season. The fruit packs 121 calories in a half-cup serving and is rich in fiber, potassium, phosphorous, calcium, copper and other nutrients. Its texture and yeasty odor remind some people of fresh bread. "I feel it's the food of the future," says Olelo pa'a Faith Ogawa, a Hawaii-born private chef. "If I were to speak to the breadfruit spirit, it would tell me: 'Grow me! Eat me!' It can feed villages!" Breadfruit has long been a staple in Pacific islands, from where it spread to the Caribbean and Africa. "It's something we all grew up with -- a comfort food," says Pamela Young, weekend anchor and food editor of KITV, the ABC station in Honolulu. "You steam it and add butter and salt."
But persuading neophytes to eat it has never been easy. The fruit is extremely starchy, hence, bland. It can have a mealy texture and tends to spoil quickly, turning into a gooey mush. Britain's Royal Society dispatched Capt. William Bligh to Tahiti in 1787 to collect breadfruit specimens to help feed colonies in the West Indies. After Capt. Bligh's Bounty crew mutinied, they tossed overboard the hundreds of breadfruit plants he had collected. Capt. Bligh finally delivered breadfruit trees to the Caribbean, but it took almost five decades for locals to develop a taste for it, according to some accounts of his mission. Epicurious, a recipe website, doesn't have an entry for breadfruit. Arnold Hiura, author of the 2010 book, "Kau Kau: Cuisine & Culture in the Hawaiian Islands," mentions it only as a "canoe plant" that Polynesian settlers brought in outriggers to Hawaii. "It's one of those forgotten foods," he says.
Even some Hawaii residents are hard to convince. "You know, it's fattening and it doesn't even taste that good," says Michelle Sewell, who has breadfruit trees outside her home on Maui island but never eats the fruit. Ms. Ragone, the horticulturalist, hadn't heard of breadfruit until she moved to Kauai in 1979 as a gardener. "The first time I ate it, I didn't really like it," she says. "It was really bland."
Sugar Rebounds as Industry Group Cuts Brazil Crop Forecast; Coffee Rises (Source: Bloomberg)
Sugar rose in New York for the first time in four sessions after an industry group cut its production forecast for the main cane-growing region of Brazil, the world’s largest supplier. Coffee also climbed. Brazil’s Center South region will produce 488.5 million metric tons of sugar cane in the 2011-2012 crop year, less than a previous forecast of 510.2 million tons, Unica, an industry group, said yesterday. Yields were hurt by freezing June weather during the Southern Hemisphere winter. Sugar futures fell 5.7 percent in the prior three sessions. “The report out of Brazil is helping support sugar, and I think the market may have gotten a little overdone with all the sell-offs we’ve had in the past 48 hours,” Hector Galvan, a senior trading adviser at RJO Futures in Chicago, said in a telephone interview.
Sugar, coffee rise, eye Fed, G20
LONDON, Nov 2 (Reuters) - ICE sugar, coffee and cocoa futures rose in sympathy with shares in early trade after a rollercoaster week, as investors hoped for comfort on the weak U.S. economy and troubled euro zone from meetings of the U.S. Federal Reserve and Group of Twenty leaders.
Raw sugar futures rose on light technically driven buying, supported by a weaker dollar as markets looked towards meetings of the Fed and G20.
Indonesia cocoa exports slump for 8th month in Oct
JAKARTA, Nov 2 (Reuters) - Cocoa bean exports from Indonesia's main growing island of Sulawesi dived for the eighth consecutive month in October, and analysts said on Wednesday the trend is unlikely to improve as the country enters its rainy season.
The world's third-largest cocoa producer exported 6,877.80 tonnes of cocoa last month, versus 33,897.86 tonnes in the same period last year, industry data showed.
US cotton output seen down due to drought-ICAC
WASHINGTON, Nov 1 (Reuters) - Severe drought in the southwestern United States will hamper domestic cotton production in 2011/12, while global output is expected to rise, an international farm group said on Tuesday.
The International Cotton Advisory Committee secretariat said high prices will drive world cotton production up 8 percent to the largest crop since 2004/05. Production will primarily be driven by China and India, with increases also expected in Pakistan, Australia, parts of Africa and Turkey.
Brazil 2011/12 CS sugar output cut again - Unica
SAO PAULO, Nov 1 (Reuters) - Brazil's main cane-milling association cut its forecast for the current crop again on Tuesday and said next season would show "timid growth" as aging plants and bad weather exact tolls on output.
Sugar production from the main center-south cane region is now forecast at 30.8 million tonnes, down from 31.57 million tonnes projected in August, industry association Unica said in its latest forecast of the 2011/12 crop.
Brazil coffee crop muddles through erratic weather
BRASILIA, Nov 1 (Reuters) - Trees in Brazil's Minas Gerais coffee belt have shed some fruit due to their weakened state following months of dry weather but the crop looks secure for now, the country's biggest cooperative said on Tuesday.
The world's top coffee grower is in a delicate early phase of the 2011/12 season, with tiny coffee beans forming following a wave of flowering, but an extended dry season earlier this year caused leaf loss causing trees to abort some fruit for lack of energy now.
S.Africa cuts 2011/12 sugar output forecast
JOHANNESBURG, Nov 1 (Reuters) - South Africa's 2011/12 sugar output is estimated at 1.855 million tonnes, from a previous forecast of 1.909 million tonnes, the South African Sugar Association (SASA) said.
Sugarcane crush was forecast at 17.029 million tonnes from 17.072 million tonnes, the industry association, which represents producers and millers of the sweetener in Africa's biggest economy, said in a statement on its website seen by Reuters on Tuesday.
Cameroon's lone cocoa grinder buys 3,745 T in Sept
YAOUNDE, Nov 1 (Reuters) - Cameroon's lone local grinder Sic-Cacaos purchased some 3,745 tonnes of cocoa beans in September, up from 2,091 tonnes the previous month, according to data from the National Cocoa and Coffee Board (NCCB) and the company.
The figure showed a slight drop from the 4,034 tonnes the firm bought for the same month last season.
Indonesia Oct Sumatra coffee exports fall 72pct, down fifth mth
BANDAR LAMPUNG, Indonesia, Nov 1 (Reuters) - Indonesia's robusta coffee bean exports from the main growing area in southern Sumatra slid 72 percent in October from the same month last year, marking five straight months of decline as hot weather hit output and stocks, government data showed on Tuesday.
Hot weather conditions had hit crops earlier this year and resulted in current low stock levels, Muchtar Lutfie, research head of the Indonesia Coffee Exporters Association's (AEKI) Lampung branch, said in a statement.
China's 2011/12 sugar output seen up 15 pct-industry official
BEIJING, Nov 1 (Reuters) - China's sugar output in the 2011/2012 crushing year from October is likely to be around 12 million tonnes, up 15 percent from 10.45 million tonnes last year, a senior industry official said on Tuesday.
Meanwhile, China's sugar consumption in 2011/12 is expected to reach 14 million tonnes, showing a shortage of 2 million tonnes, Liu Hande, the chairman of the Guangdong Sugar Association, said at a sugar conference in Haikou. His remarks were made available in a transcript published on Guangxi Sugar Network's.
China's rubber buyers want to renegotiate contracts-trade
SINGAPORE/BANGKOK, Nov 2 (Reuters) - China's rubber buyers want to negotiate new contracts with Thai sellers after tyre grade
dipped below $4 a kg, raising fears of another round of defaults by the world's largest consumer of the commodity, dealers
said on Wednesday.
Buyers in China shocked the market late in 2008 when they refused to pay for their cargoes after prices tumbled by more than
half from their peaks in the wake of a global economic meltdown that drove automakers in Europe, North America and Japan to
their knees.
Euro Coal-Nov S.African trades at $104.75/T
LONDON, Nov 1 (Reuters) - European prompt physical coal prices fell by around $2.00 percent on Tuesday after the Greek decision to call a referendum over its debt bailout revived concerns about the euro zone, pumelling equities, the euro, copper and oil prices.
Oil fell by over 2 percent or just over $3.00 a barrel to $106.93 at 1700 GMT.
Power to use 1 mln tonnes more coal in 2011/12
TOKYO, Oct 31 (Reuters) - Electric Power Development Co (J-Power) expects to consume 22 million tonnes of thermal coal in the year ending in March, up 1 million tonnes from a year earlier in the wake of the nuclear disaster in March.
J-Power, Japan's wholesale power producer and biggest thermal coal user, revised up its coal-fired plant utilisation rate to 80 percent in 2011/12 from its April projection of 72 percent. The run rate compared with 78 percent in the year ended in March.
Russia oil output hits new high after duty cut
MOSCOW, Nov 2 (Reuters) - Cuts in the crude export duty resulted in Russia's oil production, the world's largest, reaching a post-Soviet high of 10.34 million barrels per day (bpd) in October, the Energy Ministry said on Wednesday.
This compared with a previous record high of 10.30 million bpd hit in September.
Strong fuel demand growth to strain supplies
SINGAPORE, Nov 1 (Reuters) - Strong fuel demand growth from emerging economies will strain global supply and keep energy prices high even if demand from developed economies contracts, participants at a Singapore energy conference said on Tuesday.
Demand has grown to 87 million barrels per day from around 84 million bpd in the past five years despite the 2008 financial crisis and ensuing recession, Jose Sergio Gabrielli, CEO of Brazilian state oil firm Petrobras , said.
Libyan oil output hits 567,000 bpd - NOC
TRIPOLI, Nov 1 (Reuters) - Libya's oil production has risen to 567,000 barrels per day, the National Oil Corporation (NOC) chairman Nouri Berrouin told Reuters in an interview on Tuesday.
The Tuesday morning production report showed that output from Spanish oil and gas company Repsol's El Sharara field had risen to 90,000 bpd accounting for the bulk of the latest upturn in flows, he said.
Oil Slides After Europe Witholds Greek Aid, U.S. Crude Stockpiles Increase (Source: Bloomberg)
Oil fell, paring yesterday’s gains, on speculation that Europe’s dispute with Greece over a referendum on a bailout agreement threatens to intensify the debt crisis and derail the region’s economy. Futures slid as much as 58 cents, or 0.6 percent, after European leaders severed aid payments to Greece and warned the country it will surrender all payments if it votes against a rescue package agreed last week. Brent crude’s technical indicators are bearish in the near-term amid “significant” downside risks to demand, according to Standard Chartered Plc. U.S. oil and gasoline supply rose more than forecast last week. “Near-term we are bearish, given precarious growth sentiment, projected euro weakness through the fourth quarter of 2011 and slowly improving supply prospects,” Helen Henton, London-based head energy analyst at Standard Chartered Plc, said in a report e-mailed today.
Iron Ore-Shanghai rebar at one-week low; ore extends gains
SHANGHAI, Nov 2 (Reuters) - Shanghai rebar futures fell again on Wednesday, reaching its lowest level in more than a week, as fears about the viability of a European debt deal re-emerged, despite iron ore prices extending gains amid buying by Chinese steel mills.
Asian stocks wiped out all gains made during the huge relief rally last week after European leaders had agreed a basic framework to help reduce Greece's huge debts, boost the region's bailout fund and strengthen banks.
Short supply to keep lifting metals prices-PDAC chief
HELSINKI, Oct 31 (Reuters) - Key metals like copper, iron ore and manganese may rise further in the long term as emerging countries are using more of them and reserves are decreasing, the head of a Canadian mining industry group said on Monday.
"Iron ore and all the real fundamentals are going to continue to rise, because there is finite amount of those metals," Scott Jobin-Bevans, president of the Prospectors and Developers Association of Canada (PDAC) told Reuters on the sidelines of a Finnish mining seminar.
Iron ore price drop to boost Chinese imports by sea
LONDON, Oct 31 (Reuters) - Weaker international iron ore prices are driving high-cost Chinese domestic suppliers to cut output, which will push the top consumer and steelmaker to rely more on seaborne imports in the coming weeks, supporting the dry freight market.
International iron ore prices have dropped more than 30 percent since September, including a record 18 percent plunge last week, as lower steel prices have forced Chinese steelmakers to cut production.
India's iron ore exports currently minimal-trade body
MUMBAI, Oct 31 (Reuters) - Iron ore exports from India, normally the world's third-biggest exporter, are currently minimal as a slump in prices since early September and high railway freight and export duties have made the business unviable, a trade body official said on Monday.
"(Iron ore exports from) Karnataka (state) is shut, in Orissa (state) railway freight is coming in the way along with export duty," said R.K. Sharma, secretary-general of the Federation of Indian Mineral Industries (FIMI).
Tin Makers From Indonesia to Choke Off Exports Till 2012 to Revive Prices (Source: Bloomberg)
Twenty-five tin smelters in Indonesia, the largest shipper, agreed to extend an export ban until the yearend to boost prices, said Ismiyardi, head of the provincial parliament in Bangka Belitung, the top producing area. PT Timah, the world’s biggest exporting company, and PT Koba Tin back the extension, said Ismiyardi after an industry meeting. Timah is allowed to ship contractual sales, said Bangka Governor Eko Maulana Ali. Two calls to the mobile phone of Wachid Usman, the company’s president director, weren’t answered. Fifteen smelters had agreed to maintain the ban on Oct. 28. Tin plunged 17 percent in September on concern that Europe’s debt crisis may derail the global economy, prompting Indonesian smelters to suspend exports from Oct. 1 to try to drive prices to $25,000 per metric ton. The country represents more than 40 percent of global exports, according to Peter Kettle, research manager at St. Albans, England-based ITRI Ltd.
Top Gold Seers Forecast Record High in March (Source: Bloomberg)
The most accurate forecasters say gold will rebound from its biggest monthly plunge since 2008 and reach a record by March because economic growth is stagnating and Europe’s debt crisis is unresolved. Futures traded in New York may rise 13 percent to $1,950 an ounce by the end of the first quarter, according to the median of estimates compiled by Bloomberg. The predictions are from eight of the top 10 analysts tracked by Bloomberg over the past eight quarters. Two declined to give forecasts. Holdings in exchange-traded products backed by bullion rose the most in three months in October, and the most-widely held option gives owners the right to buy gold at $2,000 by Nov. 22. Demand for the metal accelerated since May as slowing growth and mounting concern that European leaders will fail to contain the region’s debt crisis caused $7.5 trillion to be erased from the value of global equities.
Baltic index at near 1-month low, cargo volumes slow
LONDON, Nov 1 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell to its lowest in nearly a month on Tuesday as a cargo slowdown on the larger capesize market continued to take its toll.
The overall index fell 53 points or 2.7 percent to 1,912 points in a fifth straight drop and was at its lowest since Oct. 5.
Thursday, November 3, 2011
20111103 1042 Soy Oil & Palm Oil Related News.
Soybeans (Source: CME)
US soybean futures end near unchanged, erasing most of the market's early gains, as traders remain cautious in an uncertain global economy. Spillover weakness from lower grain futures and outside markets paring early advances helped temper investor enthusiasm, analysts say. A weaker US dollar and higher crude oil and equities promoted early price strength. However, without fresh fundamentally supportive news and lingering fear of slowing global demand, traders took profits to pare early advances. CBOT Jan soy ended down 1/4c at $12.02 3/4/bushel.
Soybean Meal/Oil (Source: CME)
Soy-product futures end flat, backpedaling from initial gains in the absence of fresh fundamental support to buoy prices. The market mirrored the choppy action in soybeans as traders remained cautious in an uncertain economic climate. CBOT December soymeal ends down 20c at $310.50/short ton as December soyoil fell 0.05c to 50.85c/pound.
India Food Minister: Sought Cut In Indonesia's Crude Palm Oil Export Tax (Source: CME)
India has sought a cut in Indonesia's export tax on crude palm oil in lieu of cheap rice supplies after the Southeast Asian nation altered its tax regime to encourage more exports of higher value refined oil. "The sudden hike in export tax on crude oil by Indonesia will badly hurt the Indian industry, so we have sought a reduction," Indian Food Minister K.V. Thomas told reporters after a meeting with an Indonesian delegation, which sought 500,000 metric tons of low-cost rice from India. Indonesia, the world's biggest palm oil producer and exporter, reduced its export tax on refined, bleached and deodorized palm olein in bulk to 8% from 15% and raised the duty on crude palm oil to 16.5% from 15% effective Sept. 15. The tax change hurts Indian refiners as it has become cheaper to import the refined edible oil rather than process imported crude oil from Indonesia, one of the leading suppliers to the South Asian country.
Palm oil up on weather concerns, euro zone weighs
KUALA LUMPUR, Nov 2 (Reuters) - Malaysian palm oil futures rose 0.2 percent as traders looked to a developing La Nina weather pattern that could curb output, although gains were limited on uncertainty over the euro zone debt crisis.
"External factors are going to dominate palm oil futures, " said a trader with a foreign commodities brokerage.
US soybean futures end near unchanged, erasing most of the market's early gains, as traders remain cautious in an uncertain global economy. Spillover weakness from lower grain futures and outside markets paring early advances helped temper investor enthusiasm, analysts say. A weaker US dollar and higher crude oil and equities promoted early price strength. However, without fresh fundamentally supportive news and lingering fear of slowing global demand, traders took profits to pare early advances. CBOT Jan soy ended down 1/4c at $12.02 3/4/bushel.
Soybean Meal/Oil (Source: CME)
Soy-product futures end flat, backpedaling from initial gains in the absence of fresh fundamental support to buoy prices. The market mirrored the choppy action in soybeans as traders remained cautious in an uncertain economic climate. CBOT December soymeal ends down 20c at $310.50/short ton as December soyoil fell 0.05c to 50.85c/pound.
India Food Minister: Sought Cut In Indonesia's Crude Palm Oil Export Tax (Source: CME)
India has sought a cut in Indonesia's export tax on crude palm oil in lieu of cheap rice supplies after the Southeast Asian nation altered its tax regime to encourage more exports of higher value refined oil. "The sudden hike in export tax on crude oil by Indonesia will badly hurt the Indian industry, so we have sought a reduction," Indian Food Minister K.V. Thomas told reporters after a meeting with an Indonesian delegation, which sought 500,000 metric tons of low-cost rice from India. Indonesia, the world's biggest palm oil producer and exporter, reduced its export tax on refined, bleached and deodorized palm olein in bulk to 8% from 15% and raised the duty on crude palm oil to 16.5% from 15% effective Sept. 15. The tax change hurts Indian refiners as it has become cheaper to import the refined edible oil rather than process imported crude oil from Indonesia, one of the leading suppliers to the South Asian country.
Palm oil up on weather concerns, euro zone weighs
KUALA LUMPUR, Nov 2 (Reuters) - Malaysian palm oil futures rose 0.2 percent as traders looked to a developing La Nina weather pattern that could curb output, although gains were limited on uncertainty over the euro zone debt crisis.
"External factors are going to dominate palm oil futures, " said a trader with a foreign commodities brokerage.
Wednesday, November 2, 2011
20111102 1817 FCPO EOD Daily Chart Study.
Bollinger band reading : pullback correction upside biased.
MACD Histrogram : weakening, buyer taking profit.
Support : 2950, 2920, 2900, 2850 level.
Resistance : 2970, 3020, 3050, 3070 level.
Comment :
FCPO closed recorded gain with accelerating volume particiaption while overnight soy oil closed recorded loss and currently rebounding upward while crude oil price trading between gains and losses.
Both soy oil and FCPO price are having technical rebound after recent fall with focus on weather development and market awaits crude palm oil October 2011 official export, production and stock level.
Daily chart formed an up bar candle with small upper and lower shadow positioned in between middle and upper Bollinger band level after market opened little higher and moved side way within tight 11 points range bound market for the morning session followed by after lunch session opened gap up and climb higher towards the end before eased slightly lower to closed near the high of the day.
Technical study still suggesting a pullback correction 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.
20111102 1731 FKLI EOD Daily Chart Study.
Bollinger band reading : pullback correction upside biased.
MACD Histrogram : weakening, buyer taking profit.
Support : 1458, 1445, 1440, 1435 level.
Resistance : 1470, 1485, 1500, 1515 level.
Comment :
FKLI closed 1 tick higher with improving volume transacted doing about 4 points discount compare to cash market that also closed lower. Overnight U.S. markets continue closed recorded huge losses and today Asia markets traded mixed while European markets currently rebounding higher.
Some of the global markets recovered ahead of U.S. Federal Reserve meeting on latest policy however some markets still closed in negative zone on concern of Europe’s bailout of Greece will unravel and a report showed U.S. manufacturing slowed.
FKLI daily chart formed an up bar candle with upper shadow positioned nearer to middle Bollinger band level after market opened gap down, dipped 1 point lower and recovered upward all the way towards the end before eased little closed to closed off the high of the day.
Technical reading remained suggesting a pullback correction stage within an 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 resistance or strength with quick cut loss and profit target.
20111102 1658 Regional Markets EOD Daily Chart Study.
DJIA chart reading : pullback correction upside biased.
Hang Seng chart reading : pullback correction upside biased.
KLCI chart reading : pullback correction upside biased.
20111102 1613 Global Market & Commodities Related News.
Asia shares, euro fall on debt worries, FOMC eyed
TOKYO, Nov 2 (Reuters) - Asian shares fell and the euro hovered near three-week lows against the dollar, as investors shed riskier assets after Greece's abrupt call for a referendum rekindled fears about the viability of a European debt deal reached just last week.
"Investors don't want to take risks, halting both inflows to and outflows from funds," said Xiao Minjie, chief economist at FuNNeX Asset Management in Tokyo. "Every deal is temporary and there is nothing definite, meaning there is no sense for a market to bottom out.
Asia Stocks Fall for a Third Day as Greek Vote Plan Upsets Bailout Package (Bloomberg)
Asian stocks fell, with the regional benchmark index heading for its biggest three-day slide in a month, as concern heightened that Europe’s bailout of Greece will unravel and a report showed U.S. manufacturing slowed. Macquarie Group Ltd., the Australian investment bank that gets 16 percent of revenue from Europe, dropped 2.8 percent on speculation a default by Greece will threaten bank earnings. Li & Fung Ltd. (494), a supplier of clothes and toys to retailers that counts the U.S. as its largest market, declined 1.5 in Hong Kong. Nomura Holdings Inc. (8604) sank 4.1 percent after Japan’s largest brokerage posted its first quarterly loss in more than two years. The MSCI Asia Pacific Index slipped 0.9 percent to 118.02 as of 3:57 p.m. in Tokyo, extending its three-day decline to 5.3 percent, the most since Oct. 4. The measure pared losses as Chinese infrastructure companies rallied on speculation the government may adopt measures to stimulate the economy.
Japanese Stocks Fall Most in 7 Weeks as Greek Vote Threatens Europe Rescue (Bloomberg)
Nov. 2 (Bloomberg) -- Japanese stocks fell for a third day, with the benchmark Nikkei 225 (NKY) Stock Average dropping the most in seven weeks, amid concern a Greek referendum will derail Europe’s rescue plan. Mitsubishi UFJ Financial Group Inc. (8306) led declines among Japanese lenders after European banks plunged yesterday. Nomura Holdings Inc. (8604) slumped 4.1 percent after the brokerage posted its first quarterly loss in more than two years. Mitsui O.S.K. Lines Ltd. plunged 5.8 percent after shipping rates fell for a fifth day and commodity prices slid. The Nikkei 225 dropped 2.2 percent to 8,640.42 at the 3 p.m. close of trading in Tokyo, the steepest drop since Sept. 12. The gauge has lost 4.5 percent in the last three trading days, erasing most of the gains made last week after Europe appeared to make a breakthrough on a deal to contain the debt crisis. The broader Topix index fell 2.1 percent to 738.58 today. Japan’s markets are closed tomorrow for a public holiday.
FOREX-Euro near 3-week low as Greece rattles investors
TOKYO, Nov 2 (Reuters) - The euro wallowed near a three-week low against the dollar on Wednesday, having suffered its worst two-day beating since May after Greece's shock call for a referendum sparked jitters about the euro zone debt deal and sent riskier assets tumbling.
As traders covered their shorts following the slide, the euro was steady at $1.3695 , leaving a seven-week peak of $1.4248 set last Thursday but a distant memory. That kept the dollar index near a three-week high of 77.400, close to Tuesday's peak of 77.676.
Fed Officials May Prepare Ground for Further Bond Purchases, Survey Shows (Bloomberg)
Federal Reserve officials are probably engineering a third round of large-scale asset purchases, while they are unlikely to announce a decision today, according to economists in a Bloomberg News survey. Sixty-nine percent of those surveyed say Chairman Ben S. Bernanke will embark on a third round of quantitative easing, or QE3, with a plurality of 36 percent predicting the move in the first quarter of next year, according to the poll of 42 economists from Oct. 26-31. “We are becoming increasingly persuaded that QE3 is coming, this time focused on purchases of mortgage-backed securities,” said Dana Saporta, U.S. economist at Credit Suisse in New York. “The best guess is at this meeting they’ll try to build some consensus around the idea and lay the groundwork for eventual purchases.”
Japan Faces $510 Billion Loss From Intervening to Curb Yen, JPMorgan Says (Bloomberg)
Japan’s government faces almost 40 trillion yen ($512 billion) in losses from intervening in the foreign-exchange markets to stem the yen’s advance, according to estimates by JPMorgan Chase & Co. Valuation losses on Japan’s foreign-exchange reserves minus yen liabilities totaled 35.3 trillion yen at the end of 2010, according to Finance Ministry data. The losses may swell further as the yen is projected to climb to 72 versus the dollar by September 2012, said Tohru Sasaki, head of Japan rates and foreign-exchange research at JPMorgan Chase in Tokyo. “It’s difficult to change the trend of the currency market” with intervention, said Sasaki, who used to work in the foreign-exchange division of the Bank of Japan, at a forum in Tokyo yesterday. “Even if the action can stem the currency’s gains temporarily, the yen will eventually appreciate.”
COLUMN-Oilfield jobs boom in U.S. despite recession: John Kemp
--John Kemp is a Reuters market analyst. The views expressed are his own--
LONDON, Nov 1 (Reuters) - Jobs related to oil and gas drilling account for more than one in eight of all net new nonfarm jobs in the United States since 2003, and almost one in five in the private sector, according to an analysis of data from the Bureau of Labor Statistics (BLS).
Oil and gas drilling is one of the fastest growing sectors of employment, as near-record prices spur a massive expansion in activity and employment.
China reshuffle could accelerate capital market reforms
SHANGHAI, Nov 1 (Reuters) - China's reshuffle of key financial regulators a year earlier than normal shows the country is trying to avoid policy paralysis that has plagued its leadership restructuring decisions in the past. The new watchdogs may now press on with much-needed reforms, especially to its stock markets.
With markets stagnant at home and a debt crises overseas, China cannot afford to have its reform calendar come to a standstill, as has often happened in the past in the months leading up to broader leadership reshuffles decided at the Communist Party's five-yearly congresses.
Commodity trading chill lifts, MF Global angst remains
CHICAGO/NEW YORK, Nov 1 (Reuters) - Commodity trading slowly returned to normal on Tuesday as MF Global resumed selling off client positions, although new revelations about missing money sent chills through the markets.
The higher trading volume across all the major U.S. futures markets after Monday's near paralysis belied the deeper angst and frustration among many traders whose collateral funds were still frozen and who now feared that the stricken broker may have failed to separate customer accounts from its own money.
CFTC faces "big problem" with MF Global funds-source
WASHINGTON, Nov 1 (Reuters) - The U.S. Commodity Futures Trading Commission is facing an unprecedented problem as it tries to account for bankrupt MF Global's funds, a source familiar with the CFTC told Reuters.
"We do have a big problem with a hole in the segregation, and that is a serious first-of-a-kind problem that we've ever seen here," the source said. "We're trying to figure out what MF Global did with it and where is it."
COLUMN-Countdown to corn's last hurrah: Gavin Maguire
-- Gavin Maguire is a Reuters market analyst. The views expressed are his own. To get his real-time views on the market, please join the Global Ags Forum. --
CHICAGO, Nov 1 (Reuters) - The corn market has clearly lacked direction for much of the past month as December futures prices treaded water within a tight trading band on either side of the $6.50-a-bushel level.
A lack of fresh fundamental developments coupled with general worries over EU debt contagion accounted for the low-key tone of grains market action of late, but the upcoming U.S. Department of Agriculture crop report could well provide the spark required to lift this market from its recent funk and potentially spur corn's final rally of 2011.
US corn, wheat fall on Greek debt woes; soy rebounds
SINGAPORE, Nov 2 (Reuters) - U.S. corn and wheat futures ticked lower, giving up previous session's gains as investors shunned riskier assets following renewed concerns over Greece's debt crisis and a slowdown in China's manufacturing.
"We have such a heavy macro-market influence, but agricultural commodities seem to be supported, particularly corn around these levels," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne.
Indonesia cocoa exports fall for 8th month in Oct
JAKARTA, Nov 2 (Reuters) - Indonesia's cocoa bean exports from the main growing island of Sulawesi slumped 80 percent in October from a year ago, declining for an eighth consecutive month, industry data showed on Wednesday.
Indonesia, the world's third-largest cocoa producer after the Ivory Coast and Ghana, has suffered a bad harvest this year as wet weather damaged the main crop and triggered an outbreak of a deadly fungal disease.
Mexico's 2011 corn harvest to fall on bad weather
MEXICO CITY, Nov 1 (Reuters) - Mexico will produce less corn than expected this year after the crop was battered first by hard frosts in parts of the country and then by drought, the agriculture ministry said on Tuesday.
Mariano Ruiz, Mexico's deputy Agriculture Minister, said the harvest would fall to 20 million tonnes this year, less than the 23 million tonnes originally forecast. Next year the crop should recover, he said.
ADM hurt by high corn costs; ag services shine
Nov 1 (Reuters) - U.S. agribusiness Archer Daniels Midland Co boosted trading revenue last quarter, navigating choppy markets better than its rivals, but saw its profit slump on soaring corn prices and poor oilseed processing margins.
While volatile markets tripped up competitors Cargill and Bunge in the global grains trade, ADM reported its grain merchandising and handling profits more than doubled as exports from the drought-hit Black Sea region resumed after a year-long hiatus.
Brazil 2011/12 CS sugar output cut again - Unica
SAO PAULO, Nov 1 (Reuters) - Brazil's main cane-milling association cut its forecast for the current crop again on Tuesday and said next season would show "timid growth" as aging plants and bad weather exact tolls on output.
Sugar production from the main center-south cane region is now forecast at 30.8 million tonnes, down from 31.57 million tonnes projected in August, industry association Unica said in its latest forecast of the 2011/12 crop.
Brazil coffee crop muddles through erratic weather
BRASILIA, Nov 1 (Reuters) - Trees in Brazil's Minas Gerais coffee belt have shed some fruit due to their weakened state following months of dry weather but the crop looks secure for now, the country's biggest cooperative said on Tuesday.
The world's top coffee grower is in a delicate early phase of the 2011/12 season, with tiny coffee beans forming following a wave of flowering, but an extended dry season earlier this year caused leaf loss causing trees to abort some fruit for lack of energy now.
Brent crude falls on Greek debt worries, weak data
SINGAPORE, Nov 2 (Reuters) - Brent crude fell for a fourth day, the longest losing streak since September, on worries that renewed euro zone debt woes and weak economic data from China and the United States could hurt the global recovery and reduce oil demand.
"Greece's referendum plan has introduced a new level of uncertainty over the EU debt crisis," said Nader Naeimi, a strategist at AMP Capital Investors Ltd in Sydney.
India's NALCO issues 9,000 T aluminium ingots export tender
BHUBANESWAR, Nov 1 (Reuters) - India's state-run National Aluminium Co (NALCO) on Tuesday issued a tender to export 9,000 tonnes of aluminium ingots, a senior company official said.
The last date for submission of bids is Nov 9. The metal would be shipped in six batches of 1,500 tonnes each from November to April, Ansuman Das, commercial director at NALCO told Reuters.
Most non-Chinese rare earth projects doomed-consultant
LONDON, Nov 1 (Reuters) - The vast majority of non-Chinese rare earth metal (REM) ventures will fail due to a lack of expertise and high ore processing costs, says Jack Lifton, founder of the industry consultancy Technology Metals Research.
Firms were quick to launch new mines and restart mothballed operations as soon as China, which controls about 95 percent of the REM market, started slashing its export quota in 2009.
METALS-London copper rebounds after losses, Fed meeting eyed
SHANGHAI, Nov 2 (Reuters) - London copper edged back up on Wednesday after two days of losses, with investors cautious ahead of the U.S. Federal Reserve meeting later in the day.
Three-month copper on the London Metal Exchange rose 1.2 percent to $7,819.50 a tonne by 0427 GMT, after losing 3.3 percent in the previous session.
London copper rebounds after losses, Fed meeting eyed
SHANGHAI, Nov 2 (Reuters) - London copper edged back up after two days of losses, with investors cautious ahead of the U.S. Federal Reserve meeting later in the day.
"Base metal prices are in a consolidation stage at the moment and volatility is to be expected. In view of where prices have been, I don't think that today's movements are too significant, despite a divergence in the price directions on LME and ShFE," said Minmetals Futures analyst Zhang Ao.
PRECIOUS-Gold firms as Greek debt fear returns
SINGAPORE, Nov 2 (Reuters) - Gold prices firmed on Tuesday, riding on renewed safe-haven demand as fears about Greece's debt crisis returned after its government shocked the markets with a call for a referendum on a European Union aid deal.
Greece's cabinet decided early on Wednesday to back Prime Minister George Papandreou's proposal for a referendum on the EU deal, a government spokesman said.
TOKYO, Nov 2 (Reuters) - Asian shares fell and the euro hovered near three-week lows against the dollar, as investors shed riskier assets after Greece's abrupt call for a referendum rekindled fears about the viability of a European debt deal reached just last week.
"Investors don't want to take risks, halting both inflows to and outflows from funds," said Xiao Minjie, chief economist at FuNNeX Asset Management in Tokyo. "Every deal is temporary and there is nothing definite, meaning there is no sense for a market to bottom out.
Asia Stocks Fall for a Third Day as Greek Vote Plan Upsets Bailout Package (Bloomberg)
Asian stocks fell, with the regional benchmark index heading for its biggest three-day slide in a month, as concern heightened that Europe’s bailout of Greece will unravel and a report showed U.S. manufacturing slowed. Macquarie Group Ltd., the Australian investment bank that gets 16 percent of revenue from Europe, dropped 2.8 percent on speculation a default by Greece will threaten bank earnings. Li & Fung Ltd. (494), a supplier of clothes and toys to retailers that counts the U.S. as its largest market, declined 1.5 in Hong Kong. Nomura Holdings Inc. (8604) sank 4.1 percent after Japan’s largest brokerage posted its first quarterly loss in more than two years. The MSCI Asia Pacific Index slipped 0.9 percent to 118.02 as of 3:57 p.m. in Tokyo, extending its three-day decline to 5.3 percent, the most since Oct. 4. The measure pared losses as Chinese infrastructure companies rallied on speculation the government may adopt measures to stimulate the economy.
Japanese Stocks Fall Most in 7 Weeks as Greek Vote Threatens Europe Rescue (Bloomberg)
Nov. 2 (Bloomberg) -- Japanese stocks fell for a third day, with the benchmark Nikkei 225 (NKY) Stock Average dropping the most in seven weeks, amid concern a Greek referendum will derail Europe’s rescue plan. Mitsubishi UFJ Financial Group Inc. (8306) led declines among Japanese lenders after European banks plunged yesterday. Nomura Holdings Inc. (8604) slumped 4.1 percent after the brokerage posted its first quarterly loss in more than two years. Mitsui O.S.K. Lines Ltd. plunged 5.8 percent after shipping rates fell for a fifth day and commodity prices slid. The Nikkei 225 dropped 2.2 percent to 8,640.42 at the 3 p.m. close of trading in Tokyo, the steepest drop since Sept. 12. The gauge has lost 4.5 percent in the last three trading days, erasing most of the gains made last week after Europe appeared to make a breakthrough on a deal to contain the debt crisis. The broader Topix index fell 2.1 percent to 738.58 today. Japan’s markets are closed tomorrow for a public holiday.
FOREX-Euro near 3-week low as Greece rattles investors
TOKYO, Nov 2 (Reuters) - The euro wallowed near a three-week low against the dollar on Wednesday, having suffered its worst two-day beating since May after Greece's shock call for a referendum sparked jitters about the euro zone debt deal and sent riskier assets tumbling.
As traders covered their shorts following the slide, the euro was steady at $1.3695 , leaving a seven-week peak of $1.4248 set last Thursday but a distant memory. That kept the dollar index near a three-week high of 77.400, close to Tuesday's peak of 77.676.
Fed Officials May Prepare Ground for Further Bond Purchases, Survey Shows (Bloomberg)
Federal Reserve officials are probably engineering a third round of large-scale asset purchases, while they are unlikely to announce a decision today, according to economists in a Bloomberg News survey. Sixty-nine percent of those surveyed say Chairman Ben S. Bernanke will embark on a third round of quantitative easing, or QE3, with a plurality of 36 percent predicting the move in the first quarter of next year, according to the poll of 42 economists from Oct. 26-31. “We are becoming increasingly persuaded that QE3 is coming, this time focused on purchases of mortgage-backed securities,” said Dana Saporta, U.S. economist at Credit Suisse in New York. “The best guess is at this meeting they’ll try to build some consensus around the idea and lay the groundwork for eventual purchases.”
Japan Faces $510 Billion Loss From Intervening to Curb Yen, JPMorgan Says (Bloomberg)
Japan’s government faces almost 40 trillion yen ($512 billion) in losses from intervening in the foreign-exchange markets to stem the yen’s advance, according to estimates by JPMorgan Chase & Co. Valuation losses on Japan’s foreign-exchange reserves minus yen liabilities totaled 35.3 trillion yen at the end of 2010, according to Finance Ministry data. The losses may swell further as the yen is projected to climb to 72 versus the dollar by September 2012, said Tohru Sasaki, head of Japan rates and foreign-exchange research at JPMorgan Chase in Tokyo. “It’s difficult to change the trend of the currency market” with intervention, said Sasaki, who used to work in the foreign-exchange division of the Bank of Japan, at a forum in Tokyo yesterday. “Even if the action can stem the currency’s gains temporarily, the yen will eventually appreciate.”
COLUMN-Oilfield jobs boom in U.S. despite recession: John Kemp
--John Kemp is a Reuters market analyst. The views expressed are his own--
LONDON, Nov 1 (Reuters) - Jobs related to oil and gas drilling account for more than one in eight of all net new nonfarm jobs in the United States since 2003, and almost one in five in the private sector, according to an analysis of data from the Bureau of Labor Statistics (BLS).
Oil and gas drilling is one of the fastest growing sectors of employment, as near-record prices spur a massive expansion in activity and employment.
China reshuffle could accelerate capital market reforms
SHANGHAI, Nov 1 (Reuters) - China's reshuffle of key financial regulators a year earlier than normal shows the country is trying to avoid policy paralysis that has plagued its leadership restructuring decisions in the past. The new watchdogs may now press on with much-needed reforms, especially to its stock markets.
With markets stagnant at home and a debt crises overseas, China cannot afford to have its reform calendar come to a standstill, as has often happened in the past in the months leading up to broader leadership reshuffles decided at the Communist Party's five-yearly congresses.
Commodity trading chill lifts, MF Global angst remains
CHICAGO/NEW YORK, Nov 1 (Reuters) - Commodity trading slowly returned to normal on Tuesday as MF Global resumed selling off client positions, although new revelations about missing money sent chills through the markets.
The higher trading volume across all the major U.S. futures markets after Monday's near paralysis belied the deeper angst and frustration among many traders whose collateral funds were still frozen and who now feared that the stricken broker may have failed to separate customer accounts from its own money.
CFTC faces "big problem" with MF Global funds-source
WASHINGTON, Nov 1 (Reuters) - The U.S. Commodity Futures Trading Commission is facing an unprecedented problem as it tries to account for bankrupt MF Global's funds, a source familiar with the CFTC told Reuters.
"We do have a big problem with a hole in the segregation, and that is a serious first-of-a-kind problem that we've ever seen here," the source said. "We're trying to figure out what MF Global did with it and where is it."
COLUMN-Countdown to corn's last hurrah: Gavin Maguire
-- Gavin Maguire is a Reuters market analyst. The views expressed are his own. To get his real-time views on the market, please join the Global Ags Forum. --
CHICAGO, Nov 1 (Reuters) - The corn market has clearly lacked direction for much of the past month as December futures prices treaded water within a tight trading band on either side of the $6.50-a-bushel level.
A lack of fresh fundamental developments coupled with general worries over EU debt contagion accounted for the low-key tone of grains market action of late, but the upcoming U.S. Department of Agriculture crop report could well provide the spark required to lift this market from its recent funk and potentially spur corn's final rally of 2011.
US corn, wheat fall on Greek debt woes; soy rebounds
SINGAPORE, Nov 2 (Reuters) - U.S. corn and wheat futures ticked lower, giving up previous session's gains as investors shunned riskier assets following renewed concerns over Greece's debt crisis and a slowdown in China's manufacturing.
"We have such a heavy macro-market influence, but agricultural commodities seem to be supported, particularly corn around these levels," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne.
Indonesia cocoa exports fall for 8th month in Oct
JAKARTA, Nov 2 (Reuters) - Indonesia's cocoa bean exports from the main growing island of Sulawesi slumped 80 percent in October from a year ago, declining for an eighth consecutive month, industry data showed on Wednesday.
Indonesia, the world's third-largest cocoa producer after the Ivory Coast and Ghana, has suffered a bad harvest this year as wet weather damaged the main crop and triggered an outbreak of a deadly fungal disease.
Mexico's 2011 corn harvest to fall on bad weather
MEXICO CITY, Nov 1 (Reuters) - Mexico will produce less corn than expected this year after the crop was battered first by hard frosts in parts of the country and then by drought, the agriculture ministry said on Tuesday.
Mariano Ruiz, Mexico's deputy Agriculture Minister, said the harvest would fall to 20 million tonnes this year, less than the 23 million tonnes originally forecast. Next year the crop should recover, he said.
ADM hurt by high corn costs; ag services shine
Nov 1 (Reuters) - U.S. agribusiness Archer Daniels Midland Co boosted trading revenue last quarter, navigating choppy markets better than its rivals, but saw its profit slump on soaring corn prices and poor oilseed processing margins.
While volatile markets tripped up competitors Cargill and Bunge in the global grains trade, ADM reported its grain merchandising and handling profits more than doubled as exports from the drought-hit Black Sea region resumed after a year-long hiatus.
Brazil 2011/12 CS sugar output cut again - Unica
SAO PAULO, Nov 1 (Reuters) - Brazil's main cane-milling association cut its forecast for the current crop again on Tuesday and said next season would show "timid growth" as aging plants and bad weather exact tolls on output.
Sugar production from the main center-south cane region is now forecast at 30.8 million tonnes, down from 31.57 million tonnes projected in August, industry association Unica said in its latest forecast of the 2011/12 crop.
Brazil coffee crop muddles through erratic weather
BRASILIA, Nov 1 (Reuters) - Trees in Brazil's Minas Gerais coffee belt have shed some fruit due to their weakened state following months of dry weather but the crop looks secure for now, the country's biggest cooperative said on Tuesday.
The world's top coffee grower is in a delicate early phase of the 2011/12 season, with tiny coffee beans forming following a wave of flowering, but an extended dry season earlier this year caused leaf loss causing trees to abort some fruit for lack of energy now.
Brent crude falls on Greek debt worries, weak data
SINGAPORE, Nov 2 (Reuters) - Brent crude fell for a fourth day, the longest losing streak since September, on worries that renewed euro zone debt woes and weak economic data from China and the United States could hurt the global recovery and reduce oil demand.
"Greece's referendum plan has introduced a new level of uncertainty over the EU debt crisis," said Nader Naeimi, a strategist at AMP Capital Investors Ltd in Sydney.
India's NALCO issues 9,000 T aluminium ingots export tender
BHUBANESWAR, Nov 1 (Reuters) - India's state-run National Aluminium Co (NALCO) on Tuesday issued a tender to export 9,000 tonnes of aluminium ingots, a senior company official said.
The last date for submission of bids is Nov 9. The metal would be shipped in six batches of 1,500 tonnes each from November to April, Ansuman Das, commercial director at NALCO told Reuters.
Most non-Chinese rare earth projects doomed-consultant
LONDON, Nov 1 (Reuters) - The vast majority of non-Chinese rare earth metal (REM) ventures will fail due to a lack of expertise and high ore processing costs, says Jack Lifton, founder of the industry consultancy Technology Metals Research.
Firms were quick to launch new mines and restart mothballed operations as soon as China, which controls about 95 percent of the REM market, started slashing its export quota in 2009.
METALS-London copper rebounds after losses, Fed meeting eyed
SHANGHAI, Nov 2 (Reuters) - London copper edged back up on Wednesday after two days of losses, with investors cautious ahead of the U.S. Federal Reserve meeting later in the day.
Three-month copper on the London Metal Exchange rose 1.2 percent to $7,819.50 a tonne by 0427 GMT, after losing 3.3 percent in the previous session.
London copper rebounds after losses, Fed meeting eyed
SHANGHAI, Nov 2 (Reuters) - London copper edged back up after two days of losses, with investors cautious ahead of the U.S. Federal Reserve meeting later in the day.
"Base metal prices are in a consolidation stage at the moment and volatility is to be expected. In view of where prices have been, I don't think that today's movements are too significant, despite a divergence in the price directions on LME and ShFE," said Minmetals Futures analyst Zhang Ao.
PRECIOUS-Gold firms as Greek debt fear returns
SINGAPORE, Nov 2 (Reuters) - Gold prices firmed on Tuesday, riding on renewed safe-haven demand as fears about Greece's debt crisis returned after its government shocked the markets with a call for a referendum on a European Union aid deal.
Greece's cabinet decided early on Wednesday to back Prime Minister George Papandreou's proposal for a referendum on the EU deal, a government spokesman said.
20111102 1204 Global Market & Commodities Related News.
GLOBAL MARKETS-Asia shares, euro fall on debt worry, FOMC eyed
TOKYO, Nov 2 (Reuters) - Asian shares fell and the euro hovered near three-week lows against the dollar on Wednesday, as investors shed riskier assets after Greece's abrupt call for a referendum rekindled fears about the viability of a European debt deal reached just last week. "European worries have re-emerged, which put pressure on U.S. stocks and will also pressure the market here," said Yumi Nishimura, senior technical analyst at Daiwa Securities.
Asian Stocks Decline for a Third Day as Greek Vote Threatens Debt Bailout (Bloomberg)
Asian stocks fell, with the regional benchmark index heading for its biggest three-day slide in a month, as concern heightened that Europe’s bailout of Greece will unravel and a report showed U.S. manufacturing slowed. James Hardie Industries SE (JHX), the building materials supplier that counts the U.S. as its biggest market, dropped 4 percent in Sydney. Nomura Holdings Inc. (8604) sank 4.4 percent after Japan’s largest brokerage said it will eliminate jobs part of a plan to cut costs following its first quarterly loss in more than two years. Samsung Heavy Industries Co., South Korea’s second- biggest shipbuilder by market value, tumbled 5.3 percent in Seoul after reporting a 53 percent slump in profit.
The MSCI Asia Pacific Index slipped 1.5 percent to 117.28 as of 10:52 a.m. in Tokyo, extending its three-day decline to 6 percent, the most since Sept. 26. The losses in the past three days are paring back last month’s 7.7 percent advance on concern a referendum pledged by Greek Prime Minister George Papandreou may threaten Europe’s bailout.
Japan Faces $510 Billion Losses From Yen Sales, JPMorgan Says (Bloomberg)
Japan’s government faces almost 40 trillion yen ($512 billion) in losses from intervening in the foreign-exchange markets to stem the yen’s advance, according to estimates by JPMorgan Chase & Co. Valuation losses on Japan’s foreign-exchange reserves minus yen liabilities totaled 35.3 trillion yen at the end of 2010, according to Finance Ministry data. The losses may swell further as the yen is projected to climb to 72 versus the dollar by September 2012, said Tohru Sasaki, head of Japan rates and foreign-exchange research at JPMorgan Chase in Tokyo. “It’s difficult to change the trend of the currency market” with intervention, said Sasaki, who used to work in the foreign-exchange division of the Bank of Japan, at a forum in Tokyo yesterday. “Even if the action can stem the currency’s gains temporarily, the yen will eventually appreciate.”
EU Leaders Hold Pre-G-20 Crisis Talks (Bloomberg)
European leaders racing to prevent their week-old debt crisis strategy from unravelling convene emergency talks today to tell Greece there is no alternative to the budget cuts imposed in the bailout plan. Greek Prime Minister George Papandreou, his hold on power weakening, was summoned to Cannes on the eve of a Group of 20 summit where he will hear from French President Nicolas Sarkozy that the “only way to resolve Greek debt problems” is through a deal hammered out last week in a six-day crisis-management marathon. Papandreou triggered the latest upheaval in the two-year- long crisis by abruptly announcing on Oct. 31 a parliamentary confidence vote and his desire to hold a referendum on the rescue pact. Global stocks, the euro and bonds of debt-strapped countries tumbled yesterday as concern of a disorderly Greek default mounted.
COMMODITIES-Markets tumble on Greek move; MF Global weighs
NEW YORK, Nov 1 (Reuters) - Commodities fell their most in a month on Tuesday as investors sold everything from oil to copper and cocoa after a deal to bail out Greece and the broader euro zone was thrown into disarray. "It was unrealistic to expect someone could suddenly wave a magic wand and expect everything to be alright," said Nic Brown, head of commodities research at Natixis in London, referring to last week's market euphoria after the deal announced for Greece.
Brent oil slips on EU turmoil, weak economic data
NEW YORK, Nov 1 (Reuters) - Brent crude prices edged lower on Thursday in volatile trade as a possible referendum in Greece on its debt bailout revived concerns about the euro zone and weak global economic data pointed to further slowing. "There was a pressure factor earlier this morning from MF Global with the inability to do trades with the local population," said Bill O'Neill, partner at NJ LOGIC Investment.
POLL-US crude stocks seen up on higher imports
Nov 1 (Reuters) - U.S. commercial crude stockpiles rose for a second consecutive week last week as imports continued to rebound, an expanded Reuters poll of analysts showed on Tuesday.
The survey of 12 analysts projected that crude oil stocks rose 1.1 million barrels on average for the week ended Oct. 28 after the U.S. Energy Information Administration reported a 4.74-million-barrel build for the week to Oct. 21 as imports climbed.
Libyan oil output hits 567,000 bpd - NOC
TRIPOLI, Nov 1 (Reuters) - Libya's oil production has risen to 567,000 barrels per day, the National Oil Corporation (NOC) chairman Nouri Berrouin told Reuters in an interview on Tuesday.
The Tuesday morning production report showed that output from Spanish oil and gas company Repsol's El Sharara field had risen to 90,000 bpd accounting for the bulk of the latest upturn in flows, he said.
Strong fuel demand growth to strain supplies
SINGAPORE, Nov 1 (Reuters) - Strong fuel demand growth from emerging economies will strain global supply and keep energy prices high even if demand from developed economies contracts, participants at a Singapore energy conference said on Tuesday. Demand has grown to 87 million barrels per day from around 84 million bpd in the past five years despite the 2008 financial crisis and ensuing recession, Jose Sergio Gabrielli, CEO of Brazilian state oil firm Petrobras , said.
Natural gas ends down 4 pct, milder forecast weighs
NEW YORK, Nov 1 (Reuters) - U.S. natural gas futures ended down sharply on Tuesday, pressured by sinking physical prices as milder Northeast and Midwest weather forecasts dimmed prospects for an early start to the heating season. "We're getting a warm up, so the market is soft and likely to stay that way until we get some sustained cold," a Pennsylvania-based trader said.
Euro Coal-Nov S.African trades at $104.75/
TLONDON, Nov 1 (Reuters) - European prompt physical coal prices fell by around $2.00 percent on Tuesday after the Greek decision to call a referendum over its debt bailout revived concerns about the euro zone, pumelling equities, the euro, copper and oil prices. "There are a few prompt cargoes now which it's not stretching things too much to call distressed - they're about to load and looking for buyers," one European trader said.
TOKYO, Nov 2 (Reuters) - Asian shares fell and the euro hovered near three-week lows against the dollar on Wednesday, as investors shed riskier assets after Greece's abrupt call for a referendum rekindled fears about the viability of a European debt deal reached just last week. "European worries have re-emerged, which put pressure on U.S. stocks and will also pressure the market here," said Yumi Nishimura, senior technical analyst at Daiwa Securities.
Asian Stocks Decline for a Third Day as Greek Vote Threatens Debt Bailout (Bloomberg)
Asian stocks fell, with the regional benchmark index heading for its biggest three-day slide in a month, as concern heightened that Europe’s bailout of Greece will unravel and a report showed U.S. manufacturing slowed. James Hardie Industries SE (JHX), the building materials supplier that counts the U.S. as its biggest market, dropped 4 percent in Sydney. Nomura Holdings Inc. (8604) sank 4.4 percent after Japan’s largest brokerage said it will eliminate jobs part of a plan to cut costs following its first quarterly loss in more than two years. Samsung Heavy Industries Co., South Korea’s second- biggest shipbuilder by market value, tumbled 5.3 percent in Seoul after reporting a 53 percent slump in profit.
The MSCI Asia Pacific Index slipped 1.5 percent to 117.28 as of 10:52 a.m. in Tokyo, extending its three-day decline to 6 percent, the most since Sept. 26. The losses in the past three days are paring back last month’s 7.7 percent advance on concern a referendum pledged by Greek Prime Minister George Papandreou may threaten Europe’s bailout.
Japan Faces $510 Billion Losses From Yen Sales, JPMorgan Says (Bloomberg)
Japan’s government faces almost 40 trillion yen ($512 billion) in losses from intervening in the foreign-exchange markets to stem the yen’s advance, according to estimates by JPMorgan Chase & Co. Valuation losses on Japan’s foreign-exchange reserves minus yen liabilities totaled 35.3 trillion yen at the end of 2010, according to Finance Ministry data. The losses may swell further as the yen is projected to climb to 72 versus the dollar by September 2012, said Tohru Sasaki, head of Japan rates and foreign-exchange research at JPMorgan Chase in Tokyo. “It’s difficult to change the trend of the currency market” with intervention, said Sasaki, who used to work in the foreign-exchange division of the Bank of Japan, at a forum in Tokyo yesterday. “Even if the action can stem the currency’s gains temporarily, the yen will eventually appreciate.”
EU Leaders Hold Pre-G-20 Crisis Talks (Bloomberg)
European leaders racing to prevent their week-old debt crisis strategy from unravelling convene emergency talks today to tell Greece there is no alternative to the budget cuts imposed in the bailout plan. Greek Prime Minister George Papandreou, his hold on power weakening, was summoned to Cannes on the eve of a Group of 20 summit where he will hear from French President Nicolas Sarkozy that the “only way to resolve Greek debt problems” is through a deal hammered out last week in a six-day crisis-management marathon. Papandreou triggered the latest upheaval in the two-year- long crisis by abruptly announcing on Oct. 31 a parliamentary confidence vote and his desire to hold a referendum on the rescue pact. Global stocks, the euro and bonds of debt-strapped countries tumbled yesterday as concern of a disorderly Greek default mounted.
COMMODITIES-Markets tumble on Greek move; MF Global weighs
NEW YORK, Nov 1 (Reuters) - Commodities fell their most in a month on Tuesday as investors sold everything from oil to copper and cocoa after a deal to bail out Greece and the broader euro zone was thrown into disarray. "It was unrealistic to expect someone could suddenly wave a magic wand and expect everything to be alright," said Nic Brown, head of commodities research at Natixis in London, referring to last week's market euphoria after the deal announced for Greece.
Brent oil slips on EU turmoil, weak economic data
NEW YORK, Nov 1 (Reuters) - Brent crude prices edged lower on Thursday in volatile trade as a possible referendum in Greece on its debt bailout revived concerns about the euro zone and weak global economic data pointed to further slowing. "There was a pressure factor earlier this morning from MF Global with the inability to do trades with the local population," said Bill O'Neill, partner at NJ LOGIC Investment.
POLL-US crude stocks seen up on higher imports
Nov 1 (Reuters) - U.S. commercial crude stockpiles rose for a second consecutive week last week as imports continued to rebound, an expanded Reuters poll of analysts showed on Tuesday.
The survey of 12 analysts projected that crude oil stocks rose 1.1 million barrels on average for the week ended Oct. 28 after the U.S. Energy Information Administration reported a 4.74-million-barrel build for the week to Oct. 21 as imports climbed.
Libyan oil output hits 567,000 bpd - NOC
TRIPOLI, Nov 1 (Reuters) - Libya's oil production has risen to 567,000 barrels per day, the National Oil Corporation (NOC) chairman Nouri Berrouin told Reuters in an interview on Tuesday.
The Tuesday morning production report showed that output from Spanish oil and gas company Repsol's El Sharara field had risen to 90,000 bpd accounting for the bulk of the latest upturn in flows, he said.
Strong fuel demand growth to strain supplies
SINGAPORE, Nov 1 (Reuters) - Strong fuel demand growth from emerging economies will strain global supply and keep energy prices high even if demand from developed economies contracts, participants at a Singapore energy conference said on Tuesday. Demand has grown to 87 million barrels per day from around 84 million bpd in the past five years despite the 2008 financial crisis and ensuing recession, Jose Sergio Gabrielli, CEO of Brazilian state oil firm Petrobras , said.
Natural gas ends down 4 pct, milder forecast weighs
NEW YORK, Nov 1 (Reuters) - U.S. natural gas futures ended down sharply on Tuesday, pressured by sinking physical prices as milder Northeast and Midwest weather forecasts dimmed prospects for an early start to the heating season. "We're getting a warm up, so the market is soft and likely to stay that way until we get some sustained cold," a Pennsylvania-based trader said.
Euro Coal-Nov S.African trades at $104.75/
TLONDON, Nov 1 (Reuters) - European prompt physical coal prices fell by around $2.00 percent on Tuesday after the Greek decision to call a referendum over its debt bailout revived concerns about the euro zone, pumelling equities, the euro, copper and oil prices. "There are a few prompt cargoes now which it's not stretching things too much to call distressed - they're about to load and looking for buyers," one European trader said.
20111102 1006 Malaysia Corporate Related News.
Tenaga Nasional Bhd will have to deal with gas shortages for another two to three months, the country's energy minister said. He said for now Tenaga will have to deal with losses caused by having to substitute costly fuel oil for power generation, as electricity prices will remain unchanged. "At the moment, the electricity price stays, that is a government decision," Minister of Energy, Green Technology and Water Peter Chin said on the sidelines of the Singapore International Energy Week conference. "Tenaga as an operating company and Petronas as a gas supplier will have to work within this pricing system at the moment." Chin said the government has received several requests from Tenaga for help to cope with higher fuel costs. "We will look at that and see what we can do to help. Certainly we will not leave Tenaga in the woods," he said. Chin said the cause of the gas shortage was a lack of maintenance on production platforms operated by state oil and gas group Petronas. "We have to grapple with this issue for the next two to three months. It is a maintenance issue rather than a complete lack of gas," he said. (Reuters)
The massive RM11.3bn highspeed broadband (HSBB) project may eventually cost Telekom Malaysia at least RM1bn less than its original costing because of its tough procurement policy, according to sources. They claimed that if TM continued with its tough procurement policy, it could even save up to 20% upon completion of the project. Those in the know claim TM is currently finalising the numbers but it declined to comment on the potential savings of RM1bn. What will TM do with the savings? "Will they give the money back to the government or do they have the buy-in from the government to expand coverage into new areas?" asked a source. TM said: "... whatever savings gained... may be ploughed back into the long-term project to increase the reach and expansion plans, and this will be subject to further discussions with the Government and the public-private project agreement." (StarBiz)
Supermax Corporation Bhd has proposed a one-for-one bonus issue totaling 340,077,440 new shares. The Proposed Bonus Issue will not be implemented in stages over a period of time and is expected to be completed by the 1Q12. The bonus issue is conditional upon approvals being obtained from Bursa Malaysia and the shareholders of Supermax at an EGM of the company to be convened. "We believe in rewarding shareholders, especially those who stayed invested in us long term," said Supermax executive chairman and group managing director Datuk Seri Stanley Thai. "Subject to approval, our one-for-one bonus issue will be a good reward to shareholders while it will further enhance our company's share capital base, better reflect our current scale of operations and assets employed, and promote liquidity of our shares in the market thereby strengthening the equity base of our company," he said. (BMSB, Star Biz)
SapuraCrest's wholly-owned unit TL Offshore has secured a Petrobras contract to charter and operate three pipelay support vessels at a total award value of approximately US$1.4bn. One vessel will be constructed in Brazil while the remaining two will be built outside Brazil. The contract is expected to contribute positively to the company’s earnings effective FY1/15. (BMSB)
DiGi is expected to distribute about RM509m to its shareholders by 1H 2012 under the proposed capital distribution. Its unit DiGi Telecommunications had issued 100,000 redeemable preference shares to DiGi. The RPS will be redeemed by DiGiTel on March 7, 2012. Upon the redemption of the RPS, DiGi will receive about RM509m and is expected to be distributed less expenses to shareholders. (Financial Daily)
The government aims for the use of biodiesel or B5 to reach 500,000 tonnes monthly by the end of 2012, said Deputy Minister of Plantation Industries and Commodities, Datuk Hamzah Zainudin. The B5 programme which has been implemented since last June is widespread in Central region of Peninsular Malaysia, that is Putrajaya, Melaka, Negeri Sembilan, Kuala Lumpur and Selangor. (Bernama)
About 800 delegates from over 15 countries around the world from both palm oil grower and consumer markets have registered to attend the ninth annual Round Table Meeting (RT9) organised by the Roundtable on Sustainable Plam Oil (RSPO). The RT, the world's largest annual meeting on sustainable palm oil, is a platform to exchange views and experiences among various stakeholders in developed and developing countries. (Bernama)
The Competitions Commission will carry out an in-depth study on the collaborative framework between Malaysia Airlines (MAS), its subsidiary Firefly and AirAsia to ensure no anti-competition aspects in the agreement. The study would be carried out once the terms and conditions of the agreement are finalised next month. The Commission has the power to make a final decision and the government will have no power to intervene. (Star Biz)
AirAsia X (AAX) will ramp up its products and services and review its network to defend the airline’s leadership position in the long haul, low cost carrier business in Asia after SIA launched its own similar frills-free service named Scoot. AAX wants to improve its customer service to be at par with that of full service carriers like Cathay Pacific and SIA, and is contemplating investing more money to defend its lead position. AAX has 11 aircraft currently, flying to 14 destinations and will take delivery of two new aircraft in 2012. Scoot would use four B777-4000 aircraft initially to fly to four or more cities in Australia and China. (Star Biz)
AirAsia through its wholly-owned subsidiary, AA international, will take a 49% stake in the new start-up low cost carrier, AirAsia Japan. The new LCC will be in joint venture with All Nippon Airways. (Malaysian Reserve)
Mohd Azha Abdul Jalil will end his tenure as the CFO of Malaysia Airlines (MAS) at year-end. He would remain with the company until Dec 31 to ensure a smooth handover for seamless business continuity. Mohd Azha joined the national carrier in July 2007 as senior general manager – finance, and contributed significantly to the implementation of its Business Transformation Plan from January 2008. He was appointed CFO of MAS in September 2009. (Bernama)
US-based Seagate Technology LLC is very bullish about the growth of hard disk drive (HDD) market in Malaysia. Its senior vice president and managing director (Asia Pacific and Japan sales and marketing) Teh Ban Seng, said Malaysia was one of the emerging markets the company was monitoring closely. "And we expect that it will continue to be growing quite strongly," he told reporters. He said the growth in the country's HDD market was driven by the increasing shipment of computers as well as the growing consumer market. "PC (personal computer) shipments in Malaysia are still growing quite strongly. The consumer market is also growing very fast as well," he said. (Bernama)
Scomi Group Bhd is disposing of its drilling waste management assets and businesses to National Oilwell Varco, Inc.'s subsidiaries for RM107.293m. The business was held by Scomi Oiltools, Inc (Soinc) and Scomi Oiltools De Mexico, S.DE R.L DE C.V (SMEX), both held indirectly via a 76.08% subsidiary, Scomi Oilfield Ltd, Scomi said in a filing to Bursa. The bulk of the proceeds from the disposal would be used to repay borrowings. Scomi said the disposals were in line with its ongoing business strategy to rationalise and streamline existing assets by exiting from volatile markets and to re-focus on Asia, a stable and growing market. Going forward, the company expects the business strategy to bring in stable earnings. (Bernama)
Puncak Niaga Holdings Bhd is selling all its Puncak Niaga (M) Sdn Bhd (PNSB) debt note to Pengurusan Aset Air Bhd (PAAB) for RM328.12m. Puncak Niaga said it had signed a conditional sale and purchase agreement with PAAB’s special purpose vehicle – Acqua SPV Bhd – to sell all its redeemable, unsecured, coupon bearing notes. (Financial Daily)
APM Automotive has inked two JVs with International Automotive Components Group (IACG) to make and market automotive interior plastic components and systems to local and multinational original equipment makers in Malaysia and Thailand. APM will hold a 60% stake in the Malaysian JV company and a 40% stake in the Thai JV company. APM will invest about RM33m into the two ventures. (Malaysian Reserve)
The Public Accounts Committee (PAC) has blamed the lack of proper business planning for under-utilisation of the RM185 million over-the-budget baggage handling system at KL Sentral. The baggage handling system is located at the KL-City Air Terminal at KL Sentral and is linked with the KL International Airport via the Express Rail Link. Chairman and PAC and Padang Besar MP Azmi Khalid referred to the failure of Malaysia Airports Holdings Bhd (MAHB) to fully utilise the system as it is embroiled in deep negotiations with the world governing body on air travel, the International Air Travel Association (IATA) on extra costs for moving baggage on the now derelict outgoing baggage handling system. "The issue here is insurance and extra costs, which must be incurred if the baggage from disembarking passengers are sent directly to KL Sentral," Azmi explained. The issue of insurance and costs requires an agreement signed at the international level with IATA to allow the movement of baggage carried on air carriers under the Global Distribution System, or GDS, from the point of arrival in KLIA to the KL-City Air Terminal at KL Sentral. The system, which can transport 24,000 bags daily, carries only 6,000 in a day, which means only 25 percent of the capacity is being used. The walkabout by the members of the PAC at KL Sentral and KLIA marked the start of their probe into irregularities pointed out in the recently released Auditor-General's Report for 2010. (Malaysiakini)
PayPal, the US-based e-commerce business, today officially opened its new global operations centre in Malaysia, its first in Southeast Asia. The facility provides service and support in English to customers across Asia and provides an additional risk and financial services operations for PayPal's global business. PayPal senior vice president of global operations, John McCabe, said: "People are the most important asset and we are making a significant investment here in terms of hiring local talent, and providing them extensive training to better serve our customers around the world." PayPal plans to hire up to 500 local employees by end of 2013, with 200 staff already on-site. The facility occupies two floors at the strategically-located 1 First Avenue, Dataran Bandar Utama, which is a Multimedia Super Corridor (MSC)-status building. It joins PayPal's other global operations centres in Berlin, Shanghai, Sao Paulo, Dublin, and Chandler and Omaha in the US. (Malaysiakini )
Telekom: Tough procurement policy saves RM1b. The massive RM11.3b high-speed broadband (HSBB) project may eventually cost Telekom Malaysia Bhd (TM) at least RM1b less in expenditure than its original costing because it has implemented a tough procurement policy. (Source: The Star)
Aviation: SIA targets mid-2012 Scoot takeoff. SIA new long-haul budget carrier will be renamed Scoot with takeoff set for mid-2012. The new carrier will fly to cities in China and Australia, operating a fleet of 200 second-hand Boeing 777 jets and charging up to 40% less than full-service airlines. (Source:The Edge Financial Daily)
The massive RM11.3bn highspeed broadband (HSBB) project may eventually cost Telekom Malaysia at least RM1bn less than its original costing because of its tough procurement policy, according to sources. They claimed that if TM continued with its tough procurement policy, it could even save up to 20% upon completion of the project. Those in the know claim TM is currently finalising the numbers but it declined to comment on the potential savings of RM1bn. What will TM do with the savings? "Will they give the money back to the government or do they have the buy-in from the government to expand coverage into new areas?" asked a source. TM said: "... whatever savings gained... may be ploughed back into the long-term project to increase the reach and expansion plans, and this will be subject to further discussions with the Government and the public-private project agreement." (StarBiz)
Supermax Corporation Bhd has proposed a one-for-one bonus issue totaling 340,077,440 new shares. The Proposed Bonus Issue will not be implemented in stages over a period of time and is expected to be completed by the 1Q12. The bonus issue is conditional upon approvals being obtained from Bursa Malaysia and the shareholders of Supermax at an EGM of the company to be convened. "We believe in rewarding shareholders, especially those who stayed invested in us long term," said Supermax executive chairman and group managing director Datuk Seri Stanley Thai. "Subject to approval, our one-for-one bonus issue will be a good reward to shareholders while it will further enhance our company's share capital base, better reflect our current scale of operations and assets employed, and promote liquidity of our shares in the market thereby strengthening the equity base of our company," he said. (BMSB, Star Biz)
SapuraCrest's wholly-owned unit TL Offshore has secured a Petrobras contract to charter and operate three pipelay support vessels at a total award value of approximately US$1.4bn. One vessel will be constructed in Brazil while the remaining two will be built outside Brazil. The contract is expected to contribute positively to the company’s earnings effective FY1/15. (BMSB)
DiGi is expected to distribute about RM509m to its shareholders by 1H 2012 under the proposed capital distribution. Its unit DiGi Telecommunications had issued 100,000 redeemable preference shares to DiGi. The RPS will be redeemed by DiGiTel on March 7, 2012. Upon the redemption of the RPS, DiGi will receive about RM509m and is expected to be distributed less expenses to shareholders. (Financial Daily)
The government aims for the use of biodiesel or B5 to reach 500,000 tonnes monthly by the end of 2012, said Deputy Minister of Plantation Industries and Commodities, Datuk Hamzah Zainudin. The B5 programme which has been implemented since last June is widespread in Central region of Peninsular Malaysia, that is Putrajaya, Melaka, Negeri Sembilan, Kuala Lumpur and Selangor. (Bernama)
About 800 delegates from over 15 countries around the world from both palm oil grower and consumer markets have registered to attend the ninth annual Round Table Meeting (RT9) organised by the Roundtable on Sustainable Plam Oil (RSPO). The RT, the world's largest annual meeting on sustainable palm oil, is a platform to exchange views and experiences among various stakeholders in developed and developing countries. (Bernama)
The Competitions Commission will carry out an in-depth study on the collaborative framework between Malaysia Airlines (MAS), its subsidiary Firefly and AirAsia to ensure no anti-competition aspects in the agreement. The study would be carried out once the terms and conditions of the agreement are finalised next month. The Commission has the power to make a final decision and the government will have no power to intervene. (Star Biz)
AirAsia X (AAX) will ramp up its products and services and review its network to defend the airline’s leadership position in the long haul, low cost carrier business in Asia after SIA launched its own similar frills-free service named Scoot. AAX wants to improve its customer service to be at par with that of full service carriers like Cathay Pacific and SIA, and is contemplating investing more money to defend its lead position. AAX has 11 aircraft currently, flying to 14 destinations and will take delivery of two new aircraft in 2012. Scoot would use four B777-4000 aircraft initially to fly to four or more cities in Australia and China. (Star Biz)
AirAsia through its wholly-owned subsidiary, AA international, will take a 49% stake in the new start-up low cost carrier, AirAsia Japan. The new LCC will be in joint venture with All Nippon Airways. (Malaysian Reserve)
Mohd Azha Abdul Jalil will end his tenure as the CFO of Malaysia Airlines (MAS) at year-end. He would remain with the company until Dec 31 to ensure a smooth handover for seamless business continuity. Mohd Azha joined the national carrier in July 2007 as senior general manager – finance, and contributed significantly to the implementation of its Business Transformation Plan from January 2008. He was appointed CFO of MAS in September 2009. (Bernama)
US-based Seagate Technology LLC is very bullish about the growth of hard disk drive (HDD) market in Malaysia. Its senior vice president and managing director (Asia Pacific and Japan sales and marketing) Teh Ban Seng, said Malaysia was one of the emerging markets the company was monitoring closely. "And we expect that it will continue to be growing quite strongly," he told reporters. He said the growth in the country's HDD market was driven by the increasing shipment of computers as well as the growing consumer market. "PC (personal computer) shipments in Malaysia are still growing quite strongly. The consumer market is also growing very fast as well," he said. (Bernama)
Scomi Group Bhd is disposing of its drilling waste management assets and businesses to National Oilwell Varco, Inc.'s subsidiaries for RM107.293m. The business was held by Scomi Oiltools, Inc (Soinc) and Scomi Oiltools De Mexico, S.DE R.L DE C.V (SMEX), both held indirectly via a 76.08% subsidiary, Scomi Oilfield Ltd, Scomi said in a filing to Bursa. The bulk of the proceeds from the disposal would be used to repay borrowings. Scomi said the disposals were in line with its ongoing business strategy to rationalise and streamline existing assets by exiting from volatile markets and to re-focus on Asia, a stable and growing market. Going forward, the company expects the business strategy to bring in stable earnings. (Bernama)
Puncak Niaga Holdings Bhd is selling all its Puncak Niaga (M) Sdn Bhd (PNSB) debt note to Pengurusan Aset Air Bhd (PAAB) for RM328.12m. Puncak Niaga said it had signed a conditional sale and purchase agreement with PAAB’s special purpose vehicle – Acqua SPV Bhd – to sell all its redeemable, unsecured, coupon bearing notes. (Financial Daily)
APM Automotive has inked two JVs with International Automotive Components Group (IACG) to make and market automotive interior plastic components and systems to local and multinational original equipment makers in Malaysia and Thailand. APM will hold a 60% stake in the Malaysian JV company and a 40% stake in the Thai JV company. APM will invest about RM33m into the two ventures. (Malaysian Reserve)
The Public Accounts Committee (PAC) has blamed the lack of proper business planning for under-utilisation of the RM185 million over-the-budget baggage handling system at KL Sentral. The baggage handling system is located at the KL-City Air Terminal at KL Sentral and is linked with the KL International Airport via the Express Rail Link. Chairman and PAC and Padang Besar MP Azmi Khalid referred to the failure of Malaysia Airports Holdings Bhd (MAHB) to fully utilise the system as it is embroiled in deep negotiations with the world governing body on air travel, the International Air Travel Association (IATA) on extra costs for moving baggage on the now derelict outgoing baggage handling system. "The issue here is insurance and extra costs, which must be incurred if the baggage from disembarking passengers are sent directly to KL Sentral," Azmi explained. The issue of insurance and costs requires an agreement signed at the international level with IATA to allow the movement of baggage carried on air carriers under the Global Distribution System, or GDS, from the point of arrival in KLIA to the KL-City Air Terminal at KL Sentral. The system, which can transport 24,000 bags daily, carries only 6,000 in a day, which means only 25 percent of the capacity is being used. The walkabout by the members of the PAC at KL Sentral and KLIA marked the start of their probe into irregularities pointed out in the recently released Auditor-General's Report for 2010. (Malaysiakini)
PayPal, the US-based e-commerce business, today officially opened its new global operations centre in Malaysia, its first in Southeast Asia. The facility provides service and support in English to customers across Asia and provides an additional risk and financial services operations for PayPal's global business. PayPal senior vice president of global operations, John McCabe, said: "People are the most important asset and we are making a significant investment here in terms of hiring local talent, and providing them extensive training to better serve our customers around the world." PayPal plans to hire up to 500 local employees by end of 2013, with 200 staff already on-site. The facility occupies two floors at the strategically-located 1 First Avenue, Dataran Bandar Utama, which is a Multimedia Super Corridor (MSC)-status building. It joins PayPal's other global operations centres in Berlin, Shanghai, Sao Paulo, Dublin, and Chandler and Omaha in the US. (Malaysiakini )
Telekom: Tough procurement policy saves RM1b. The massive RM11.3b high-speed broadband (HSBB) project may eventually cost Telekom Malaysia Bhd (TM) at least RM1b less in expenditure than its original costing because it has implemented a tough procurement policy. (Source: The Star)
Aviation: SIA targets mid-2012 Scoot takeoff. SIA new long-haul budget carrier will be renamed Scoot with takeoff set for mid-2012. The new carrier will fly to cities in China and Australia, operating a fleet of 200 second-hand Boeing 777 jets and charging up to 40% less than full-service airlines. (Source:The Edge Financial Daily)
20111102 1002 Local & Global Economic Related News.
Some RM10bn in investments under the Economic Transformation Programme (ETP) over the past one year have been realised, constituting 64% of the RM15bn investments committed for the year, Pemandu CEO Datuk Seri Idris Jala said. Entry Point projects (EPPs) were progressing well with 70 out of 131 EPPs or 53% have taken off. In 1H11, private sector investment was up 23.4% to RM51.2bn, outstripping public investment for the same period, he said. The first six months also saw the GNI standing at RM288bn, investment of RM51.2bn and some 344,000 jobs created by 2020. (Bernama)
Bank Negara Malaysia (BNM) Governor Tan Sri Dr Zeti Akhtar Aziz said there were improvements in the country's 3Q11 GDP figures, supported by strong consumption demand, implementation of various government projects and strong financing patterns. "But we will see to what extent the improvements are - whether it is more than 4.5% or whether it is closer to 5%," she said. BNM is scheduled to release 3Q11 GDP figure on 18 Nov. To a question on whether Malaysia was more concerned with inflation or growth, Zeti said both were looked at. "The conditions are highly dynamic, we have to make very careful assessment. We do not want to undermine our future prospect of growth because if we have high inflation, it would undermine future growth," she noted. So the policies cannot just be for the moment, they would have to be sustainable over the medium term, she added. Across Asia, regional economies are still resilient and the region would still post economic expansion, albeit at a slower rate. She expects Asia’s GDP growth this year to come in less than the average of 6-7%. (Bernama, Financial Daily)
Malaysia will face serious traffic congestion if the Mass Rapid Transit (MRT) is not in place by 2020, said Datuk Seri Idris Jala, CEO of the Performance Management and Delivery Unit (PEMANDU). He said no number of buses will solve the city's traffic problem, and Malaysia needs a different modus operandi as a solution. To reduce cost overruns, Idris said Malaysia has learned lessons in drafting the MRT development including from South Korea, Japan and Singapore. (Bernama)
Come 2020, the country needs an additional 8,600 five-star and 31,300 four-star hotel rooms to achieve the target of 36m tourist for that year. Tourism Minister Datuk Seri Dr Ng Yen Yen said that even currently, there were insufficient five-star and four-star hotels as the ministry often received complaints, especially during peak season. The location to build these types of hotels however, depends on the operators, and by looking at the government tourism direction. On next year's tourist projection, she said it was still under review as the tourist arrivals for this year, which was forecasted at 25m visitors, had to be re-adjusted, in view of certain reasons. It included the regional development in Thailand, as well as the European and American developments. (Bernama)
The government has spent RM1.97bn to implement 1,089 water supply projects in rural areas nationwide, which are expected to be fully completed by year-end, the Dewan Rakyat was told. Deputy Rural and Regional Development Minister Datuk Hasan Malek said the allocation was an increase from RM413.4m spent to implement 554 projects last year and RM297.4m to implement 671 projects in 2009. Hasan said the government had also spent RM1.36bn to implement 582 electricity supply projects in the rural areas this year (RM703.1m in 2010 and RM410.4m in 2009), which also expected to be fully completed by year-end. Between 2009 and last month, 54,374 houses had been built in rural areas under the Housing Aid programme, involving an allocation of RM1.36bn (vs. RM431.6m to build 16,926 houses last year and RM551.1m to build 19,467 houses in 2009), he added. (Bernama)
The government has allocated RM15.9bn for petrol and diesel subsidies this year to control the price and reduce burden on the people. Deputy Finance Minister Datuk Donald Lim Siang Chai told Dewan Rakyat yesterday that government spending on petrol and diesel subsidies last year amounted RM9.6bn. (Bernama)
The Inland Revenue Board (IRB) will issue the forms for the one-off cash handout of RM500 to households with income of less than RM3,000 in Dec, said its CEO Datuk Dr. Mohd Shukor Mahfar. Payment are expected to be made in Jan 12. He noted that the payment would be disbursed by the Accountant-General through banks, including Bank Simpanan Nasional. (The Star)
US construction spending rose in Sep for a second month as gains in private projects outpaced a drop in government outlays. Building outlays increased 0.2% in Sep after jumping 1.6% in Aug, Commerce Department figures showed. Economists called for a 0.3% gain. (Bloomberg)
The US Institute for Supply Management’s factory index fell to 50.8 in Oct (51.6 in Sep), the group said. Economists projected the gauge would climb to 52. (Bloomberg)
A failure by a Congressional super committee to reach agreement on deficit reduction wouldn’t on its own cause the US to lose its top credit ranking, Moody’s Investors Service said. (Bloomberg)
Japanese wage earners' total cash earnings were unchanged on a yoy basis in Sep (-0.4% in Aug), labour ministry data showed. (Reuters) Japan’s automobile sales, excluding 660cc minivehicles, rose 28.3% yoy in Oct (+1.7% in Sep), due to a low year-ago base when auto sales tanked on the first full month after government subsidies to replace cars older than 13 years expired. (Reuters)
Thailand’s inflation held above 4% for the seventh straight month in Oct as the worst floods in almost 70 years destroyed crops and stoked food costs. Inflation climbed to 4.19% yoy, compared with a 4.03% pace in Sep. The median was for a 4.5% gain. (Bloomberg)
Thailand’s government said it may take 45 days to pump water from inundated industrial estates north of Bangkok once flooding recedes. ―After that we will send technicians to check out damage to machinery,‖ Industry Minister Wannarat Charnnukul said. ―For the remaining estates that are not flooded, we have already prepared measures to protect them and we believe they won’t be flooded.‖ (Bloomberg)
China's official purchasing managers' index (PMI) fell to 50.4 in Oct from 51.2 in Sep. HSBC’s China PMI rose in Oct to 51.0 from 49.9 in Sep, the index's first rise above 50 since June. (Reuters)
Indonesia’s headline CPI rose 4.42% yoy in Oct (+4.61% in Sep), while core inflation was 4.43% yoy in Oct, easing from 4.93% in Sep. Economists had expected inflation to rise 4.76%. (Wall Street Journal)
Trade data that showed Indonesia’s exports rose 46.3% yoy in Sep to US$17.82bn, while imports climbed 56.4% yoy to US$15.1bn. The trade surplus narrowed to US$2.72bn in Sep from Aug's US$3.76bn. Economists had expected exports and imports to rise 40.7% and 47.2% respectively. (Wall Street Journal)
South Korea's Oct exports growth slumped to 9.3% yoy from 18.8% in Sep. Imports rose 16.4% yoy in Oct (+29.3% in Sep). Economists were expecting exports and imports to rise 10.9% and 22.3% respectively in Oct. (Wall Street Journal, Bloomberg)
Vietnam’s industrial production rose 5.3% yoy in Oct (+12.0% in Sep). (Bloomberg)
Vietnam’s retail sales in YTD rose 23.1% yoy in Oct (+22.8% in Sep). (Bloomberg)
In India, exports in Sep climbed 36.3% yoy (+44.3% in Aug) to US$24.8bn, while imports grew 17.2% yoy (41.8% in Aug) to US$34.6bn, helping narrow the trade deficit to US$9.8bn from US$14.0bn in Aug. (Wall Street Journal).
In Singapore, the Electronics Index rose to 52.1 in Oct (47.2 in Sep). Economists were expecting an index reading of 47.0. (Bloomberg) Singapore purchasing manager’s index rose to 49.5 in Oct from 48.3 in Sep. Economists had forecasted an unchanged reading of 48.3 for Oct. (Bloomberg)
Bank Negara Malaysia (BNM) Governor Tan Sri Dr Zeti Akhtar Aziz said there were improvements in the country's 3Q11 GDP figures, supported by strong consumption demand, implementation of various government projects and strong financing patterns. "But we will see to what extent the improvements are - whether it is more than 4.5% or whether it is closer to 5%," she said. BNM is scheduled to release 3Q11 GDP figure on 18 Nov. To a question on whether Malaysia was more concerned with inflation or growth, Zeti said both were looked at. "The conditions are highly dynamic, we have to make very careful assessment. We do not want to undermine our future prospect of growth because if we have high inflation, it would undermine future growth," she noted. So the policies cannot just be for the moment, they would have to be sustainable over the medium term, she added. Across Asia, regional economies are still resilient and the region would still post economic expansion, albeit at a slower rate. She expects Asia’s GDP growth this year to come in less than the average of 6-7%. (Bernama, Financial Daily)
Malaysia will face serious traffic congestion if the Mass Rapid Transit (MRT) is not in place by 2020, said Datuk Seri Idris Jala, CEO of the Performance Management and Delivery Unit (PEMANDU). He said no number of buses will solve the city's traffic problem, and Malaysia needs a different modus operandi as a solution. To reduce cost overruns, Idris said Malaysia has learned lessons in drafting the MRT development including from South Korea, Japan and Singapore. (Bernama)
Come 2020, the country needs an additional 8,600 five-star and 31,300 four-star hotel rooms to achieve the target of 36m tourist for that year. Tourism Minister Datuk Seri Dr Ng Yen Yen said that even currently, there were insufficient five-star and four-star hotels as the ministry often received complaints, especially during peak season. The location to build these types of hotels however, depends on the operators, and by looking at the government tourism direction. On next year's tourist projection, she said it was still under review as the tourist arrivals for this year, which was forecasted at 25m visitors, had to be re-adjusted, in view of certain reasons. It included the regional development in Thailand, as well as the European and American developments. (Bernama)
The government has spent RM1.97bn to implement 1,089 water supply projects in rural areas nationwide, which are expected to be fully completed by year-end, the Dewan Rakyat was told. Deputy Rural and Regional Development Minister Datuk Hasan Malek said the allocation was an increase from RM413.4m spent to implement 554 projects last year and RM297.4m to implement 671 projects in 2009. Hasan said the government had also spent RM1.36bn to implement 582 electricity supply projects in the rural areas this year (RM703.1m in 2010 and RM410.4m in 2009), which also expected to be fully completed by year-end. Between 2009 and last month, 54,374 houses had been built in rural areas under the Housing Aid programme, involving an allocation of RM1.36bn (vs. RM431.6m to build 16,926 houses last year and RM551.1m to build 19,467 houses in 2009), he added. (Bernama)
The government has allocated RM15.9bn for petrol and diesel subsidies this year to control the price and reduce burden on the people. Deputy Finance Minister Datuk Donald Lim Siang Chai told Dewan Rakyat yesterday that government spending on petrol and diesel subsidies last year amounted RM9.6bn. (Bernama)
The Inland Revenue Board (IRB) will issue the forms for the one-off cash handout of RM500 to households with income of less than RM3,000 in Dec, said its CEO Datuk Dr. Mohd Shukor Mahfar. Payment are expected to be made in Jan 12. He noted that the payment would be disbursed by the Accountant-General through banks, including Bank Simpanan Nasional. (The Star)
US construction spending rose in Sep for a second month as gains in private projects outpaced a drop in government outlays. Building outlays increased 0.2% in Sep after jumping 1.6% in Aug, Commerce Department figures showed. Economists called for a 0.3% gain. (Bloomberg)
The US Institute for Supply Management’s factory index fell to 50.8 in Oct (51.6 in Sep), the group said. Economists projected the gauge would climb to 52. (Bloomberg)
A failure by a Congressional super committee to reach agreement on deficit reduction wouldn’t on its own cause the US to lose its top credit ranking, Moody’s Investors Service said. (Bloomberg)
Japanese wage earners' total cash earnings were unchanged on a yoy basis in Sep (-0.4% in Aug), labour ministry data showed. (Reuters) Japan’s automobile sales, excluding 660cc minivehicles, rose 28.3% yoy in Oct (+1.7% in Sep), due to a low year-ago base when auto sales tanked on the first full month after government subsidies to replace cars older than 13 years expired. (Reuters)
Thailand’s inflation held above 4% for the seventh straight month in Oct as the worst floods in almost 70 years destroyed crops and stoked food costs. Inflation climbed to 4.19% yoy, compared with a 4.03% pace in Sep. The median was for a 4.5% gain. (Bloomberg)
Thailand’s government said it may take 45 days to pump water from inundated industrial estates north of Bangkok once flooding recedes. ―After that we will send technicians to check out damage to machinery,‖ Industry Minister Wannarat Charnnukul said. ―For the remaining estates that are not flooded, we have already prepared measures to protect them and we believe they won’t be flooded.‖ (Bloomberg)
China's official purchasing managers' index (PMI) fell to 50.4 in Oct from 51.2 in Sep. HSBC’s China PMI rose in Oct to 51.0 from 49.9 in Sep, the index's first rise above 50 since June. (Reuters)
Indonesia’s headline CPI rose 4.42% yoy in Oct (+4.61% in Sep), while core inflation was 4.43% yoy in Oct, easing from 4.93% in Sep. Economists had expected inflation to rise 4.76%. (Wall Street Journal)
Trade data that showed Indonesia’s exports rose 46.3% yoy in Sep to US$17.82bn, while imports climbed 56.4% yoy to US$15.1bn. The trade surplus narrowed to US$2.72bn in Sep from Aug's US$3.76bn. Economists had expected exports and imports to rise 40.7% and 47.2% respectively. (Wall Street Journal)
South Korea's Oct exports growth slumped to 9.3% yoy from 18.8% in Sep. Imports rose 16.4% yoy in Oct (+29.3% in Sep). Economists were expecting exports and imports to rise 10.9% and 22.3% respectively in Oct. (Wall Street Journal, Bloomberg)
Vietnam’s industrial production rose 5.3% yoy in Oct (+12.0% in Sep). (Bloomberg)
Vietnam’s retail sales in YTD rose 23.1% yoy in Oct (+22.8% in Sep). (Bloomberg)
In India, exports in Sep climbed 36.3% yoy (+44.3% in Aug) to US$24.8bn, while imports grew 17.2% yoy (41.8% in Aug) to US$34.6bn, helping narrow the trade deficit to US$9.8bn from US$14.0bn in Aug. (Wall Street Journal).
In Singapore, the Electronics Index rose to 52.1 in Oct (47.2 in Sep). Economists were expecting an index reading of 47.0. (Bloomberg) Singapore purchasing manager’s index rose to 49.5 in Oct from 48.3 in Sep. Economists had forecasted an unchanged reading of 48.3 for Oct. (Bloomberg)
20111102 0948 Global Market Related News.
Asian Stocks Decline for a Third Day as Greek Vote Threatens Debt Bailout (Source: Bloomberg)
Asian stocks fell for a third day as concern heightened that Europe’s bailout of debt-ridden Greece will unravel and a report showed U.S. manufacturing slowed, damping the earnings outlook for Asian exporters. James Hardie Industries SE (JHX), the building materials supplier that counts the U.S. as its biggest market, dropped 4.8 percent in Sydney. Nomura Holdings Inc. (8604) sank 4.4 percent after Japan’s largest brokerage said it will eliminate jobs part of a plan to cut costs following its first quarterly loss in more than two years. Samsung Heavy Industries Co., South Korea’s second- biggest shipbuilder by market value, slumped 5.5 percent in Seoul after reporting a 53 percent slump in profit. The MSCI Asia Pacific Index slipped 1.5 percent to 117.25 as of 9:35 a.m. in Tokyo. The measure gained 7.7 percent last month, the most since Sept. 2010, as Europe appeared close to a deal to contain its debt crisis, reports showed the U.S. economy grew faster and China hinted at easier monetary policy.
IMF May Create 6-Month Credit Line for Countries Facing Shocks (Source: Bloomberg)
The International Monetary Fund may create a six-month credit line for countries facing shocks, officials from Group of 20 governments and IMF said, as the European debt crisis rocks global financial markets. The amount would be capped at five times a nation’s contribution to the Washington-based IMF, known as a quota, making the credit line best suited for smaller countries, the people said. It is likely to be endorsed at a meeting of G-20 leaders this week in Cannes, France, where European nations will seek financial support from other members, said the three officials, who declined to be identified because the plan hasn’t been made public.
The instrument would be the latest in a set of IMF tools intended to increase liquidity as Europe’s crisis threatens to spread beyond Greece. It could be used as part of a broader international package to aid larger economies such as Spain, with IMF participation serving to reassure other creditors, said Bessma Momani, a political science professor at the University of Waterloo in Canada.
Volatility Indexes Surge as Greek Bailout Vote Roils Markets (Source: Bloomberg)
Volatility indexes surged, giving the benchmark European measure the biggest two-day jump since May 2010, after Greece’s decision to schedule a vote on the region’s bailout spurred concern the nation will default. The VStoxx Index (V2X), which measures the cost of Euro Stoxx 50 Index options, rose 22 percent to 42.96, extending its two-day increase to 37 percent. The Chicago Board Options Exchange Volatility Index, or VIX, soared 16 percent to 34.77 today, bringing its two-day gain to 42 percent. Gauges of market fear are jumping as speculation about Europe’s debt crisis drowns out earnings and economic news. Germany’s DAX Index rose or fell 3.4 percent on average during the past four days while the Dow Jones Industrial Average’s average intraday move has exceeded 250 points since Oct. 26.
U.S. Stocks Slump Amid Concern Bailout for Greece in Jeopardy (Source: Bloomberg)
U.S. stocks dropped, driving the Standard & Poor’s 500 Index to the biggest two-day slump in a month, on concern that a Greece referendum pledged by Prime Minister George Papandreou may threaten Europe’s bailout. All 10 groups in the S&P 500 fell as gauges of financial, energy and industrial shares lost at least 3 percent. Citigroup Inc. (C) and Morgan Stanley retreated more than 7.6 percent, following a 6.2 percent tumble in European lenders. Exchange operators slumped after U.S. lawmakers said they will propose a tax on financial transactions such as stock and bond trades. The S&P 500 decreased 2.8 percent to 1,218.28 as of 4 p.m. New York time, extending its two-day retreat to 5.2 percent, the biggest drop since Oct. 3. The Dow Jones Industrial Average declined 297.05 points, or 2.5 percent, to 11,657.96 today.
U.S. 30-Year Bonds Hold Biggest Three-Day Gain Since 2008 on Europe Crisis (Source: Bloomberg)
Treasury 30-year bonds held their biggest rally since 2008 on speculation a European plan to solve the region’s debt crisis is faltering. “The core problems still exist in Europe,” said Zeal Yin, a money manager at Taipei-based Shin Kong Life Insurance Co., Taiwan’s second-largest life insurer with the equivalent of $39.9 billion in assets. “The global economy is starting to cool. If the problems persist, record low yields are possible by year-end.” The 30-year rate was little changed at 3 percent as of 9:45 a.m. in Tokyo, according to Bloomberg Bond Trader prices. The 3.75 percent security due in August 2041 changed hands at 114 23/32. The yield has fallen 46 basis points from Oct. 28 through yesterday, the biggest three-day slide since November 2008, according to data compiled by Bloomberg.
U.S. Construction Spending Rose in September for Second Consecutive Month (Source: Bloomberg)
Construction spending in the U.S. rose in September for a second month as gains in private projects outpaced a drop in government outlays. Building outlays increased 0.2 percent after jumping 1.6 percent in August, Commerce Department figures showed today in Washington. The median estimate of economists in a Bloomberg survey called for a 0.3 percent gain. Spending on multifamily housing is helping to lift activity from decade lows as more families opt to rent rather than purchase a new home. While lower interest rates may also help drive investment in commercial projects, overall weakness in the housing market coupled with a reduction in government spending will weigh on the construction industry.
U.S. Manufacturing Probably Grew Faster in October (Source: Bloomberg)
Manufacturing in the U.S. probably expanded at a faster pace in October, driven by gains in exports and consumer spending that are keeping the recovery intact, economists said before a report today. The Institute for Supply Management’s factory index rose to 52 from 51.6 a month earlier, according to the median forecast in a Bloomberg News survey. A level of 50 is the dividing line between growth and contraction. Construction spending rose in September, another report may show. American factories may keep leading the economy as growing demand from emerging economies drives orders and production. The industry is also benefiting from increasing business investment as companies take advantage of tax depreciation allowances on equipment purchased before the end of the year.
Manufacturing in U.S. Comes Close to Stagnating as Global Demand Weakens (Source: Bloomberg)
Manufacturing in the U.S. was close to stagnating in October as cooling global demand prompted factories to pare production and reduce inventories. The Institute for Supply Management’s factory index dropped to 50.8 last month from 51.6 in September, the Tempe, Arizona- based group’s data showed today. A reading of 52 was the median forecast in a Bloomberg News survey of economists. Fifty is the dividing line between growth and contraction. Manufacturing weakened from China to the U.K., partly a reflection of Beijing’s efforts to cool its economy and Europe’s debt crisis. Signs the industry that spearheaded the U.S. recovery is stumbling highlight the risks to growth as Federal Reserve policy makers meet to determine if more monetary easing is needed to spur demand.
“There are concerns that manufacturing in Europe and China are showing signs of softening, and that could potentially feed into the U.S.,” said Ryan Sweet, a senior economist at Moody’s Analytics Inc. in New York. “The markets seem to be more worried about the European sovereign-debt crisis. We’ll likely struggle to surpass third-quarter GDP growth.”
Bernanke Reviving Housing May Rely on Wider Access to Mortgage Refinancing (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke can’t go it alone when it comes to reviving the U.S. housing market. Fed policy makers, who started a two-day meeting today, are considering buying mortgage-backed securities to push down borrowing costs and help homeowners refinance their debt. That would reduce monthly payments, freeing up cash for other purchases that could spur the economy and reduce unemployment, Fed Governor Daniel Tarullo said Oct. 20. Such an effort would save homeowners $60 billion to $80 billion a year, or about 0.5 percent of gross domestic product, so long as the Obama administration succeeds in helping homeowners through a stepped-up refinancing aid plan, said Joseph Gagnon, a former Fed economist. Should the program fail, Fed asset-buying would probably provide homeowners less than half its potential savings, said Gagnon, a senior fellow at the Peterson Institute for International Economics in Washington.
China Inflation Cooling; Wen May Loosen Policies (Source: Bloomberg)
China’s inflation is showing signs of easing further, giving Premier Wen Jiabaomore room to loosen fiscal and monetary policies as Europe’s sovereign-debt crisis threatens exports. An index of manufacturers’ input costs fell the most in 17 months in October, China’s logistics federation and the statistics bureau said yesterday. A separate survey by HSBC Holdings Plc and Markit Economics also showed a decline. China’s central bank has paused in raising interest rates and bank reserve requirements as officials assess the risk that European leaders meeting in Cannes, France, this week will fail to contain the crisis. Inflation may moderate to below 5 percent in November and December, compared with a three-year high of 6.5 percent in July, said Zhu Jianfang, the most accurate forecaster of the number in Bloomberg News surveys over the past two years.
Japan Stocks Decline on Greek Rescue Concern, Slower U.S. Manufacturing (Source: Bloomberg)
Nov. 2 (Bloomberg) -- Japanese stocks fell for a third day, the longest losing streak in a month, as concern heightened that Europe’s bailout of debt-ridden Greece will unravel and a report showed U.S. manufacturing slowed, damping the earnings outlook for Asian exporters. Honda Motor Co., a carmaker that gets 83 percent of its sales abroad, slid 2.7 percent. Mitsui O.S.K. Lines Ltd. led shippers lower after a measure of cargo rates fell yesterday for a fifth day and commodity prices slid. Nomura Holdings Inc. (8604) slumped 3.6 percent after Japan’s largest brokerage said it will consider layoffs as part of a plan to triple cost cuts to $1.2 billion after its first quarterly loss in more than two years. The Nikkei 225 (NKY) Stock Average dropped 1.9 percent to 8,668.40 as of 9:19 a.m. in Tokyo. The broader Topix index fell 2.1 percent to 738.78.
Nomura May Cut Japan Jobs After Quarterly Loss (Source: Bloomberg)
Nomura Holdings Inc. (8604), Japan’s largest brokerage, said it will consider eliminating jobs at home as part of a plan to triple cost cuts to $1.2 billion following its first quarterly loss in more than two years. While most of the expense reductions will be in Europe, “we’ll also target Japan, focusing on the wholesale business,” Chief Financial Officer Junko Nakagawa told reporters yesterday in Tokyo. The company posted a 46.1 billion yen ($590 million) loss for the three months ended Sept. 30, wider than the 35 billion yen average estimate among analysts surveyed. Nakagawa’s remarks indicate Nomura may trim domestic payrolls to revive profit that has eroded since the purchase of Lehman Brothers Holdings Inc.’s Asian and European operations in 2008. Staffing costs will account for about 70 percent of the additional $800 million of curtailed expenses, Deputy President Takumi Shibata said on a conference call yesterday.
European Stocks Sink Most in Five Weeks on Greece Bailout Vote; Banks Drop (Source: Bloomberg)
European stocks sank the most in five weeks, as Greece’s government called a referendum on its latest bailout package, spurring concern that the country may default. Credit Suisse Group AG (CSGN) and Danske Bank A/S led a selloff in lenders, both sliding more than 6.5 percent, after posting earnings that fell short of analysts’ estimates. National Bank of Greece SA (ETE) sank 15 percent to its lowest price since 1992 in Athens. Mining companies tumbled after a gauge of Chinese manufacturing dropped to the lowest level since February 2009. The Stoxx Europe 600 Index slid 3.5 percent to 235.06 at the close in London, for the biggest plunge since Sept. 22, extending yesterday’s 2.2 percent selloff and paring last month’s biggest advance since 2009. The VStoxx Index (V2X), which measures the cost of protecting against a decline in shares on the Euro Stoxx 50 Index, jumped 22 percent to 42.96, its biggest gain since Aug. 18.
Italian Stocks Slump Most Since 2008 as Europe Debt Crisis Concern Returns (Source: Bloomberg)
Italian stocks slumped the most in three years as Greek Prime Minister George Papandreou’s call for a referendum on the European Union’s rescue agreement raised concern that efforts to avoid a default will be derailed. The benchmark FTSE MIB Index (FTSEMIB) lost 1,089.49, or 6.8 percent, to 14,928.24 at the close of trading in Milan, the largest decline since October 2008. The gauge has retreated 26 percent this year. Intesa Sanpaolo tumbled 16 percent to 1.09 euros and UniCredit SpA (UCG) sank 12 percent to 74.3 euro cents as banks paced the selloff. “The move by the Greek prime minster to hold a referendum on the EU bailout deal was a real surprise,” said Joshua Raymond, a London-based market strategist at City Index Ltd. “Given the public antipathy towards the austerity plans and the fact that the government has such a low approval rating, one questions where the public support for the package will come from and where that will leave Greece.”
Greek Referendum to Hinder IMF, EU Aid (Source: Bloomberg)
A Greek referendum on its latest bailout package will hinder the next installment of aid funds by the International Monetary Fund and the European Union, Dutch Finance Minister Jan Kees de Jager said. “This hinders the planning of the IMF and the euro zone. It creates a problem for the whole sixth tranche,” De Jager told parliament in The Hague late last night. “I can imagine that it will be very difficult for the IMF if there is uncertainty about the sustainability.” The new round of political turmoil throws into doubt Greece’s ability to access the emergency funding that’s keeping its finances afloat. The IMF’s executive board was due to meet in mid-November to decide on paying its part of the sixth bailout tranche, which is worth a total of 8 billion euros ($11 billion). The Netherlands and euro-zone countries including Germany and France seek to minimize the damage from a “very unfortunate” referendum called by Greek Prime Minister George Papandreou, Dutch Prime Minister Mark Rutte told parliament.
Draghi’s First Day as Head of ECB Blighted as Papandreou Seeks Referendum (Source: Bloomberg)
Mario Draghi’s first day as head of the European Central Bank was blighted by George Papandreou. Italian bonds slid and the risk premium between German debt and the rest of the euro area increased after the Greek prime minister announced late yesterday he will hold a referendum on the terms of his country’s bailout. Papandreou’s gambit, hours before Draghi succeeded Jean- Claude Trichet, exposed the political pitfalls in the fight to keep the euro from blowing apart and adds to the pressure on the ECB to keep buying distressed bonds. An ultimate rejection of the rescue deal by the Greek electorate would threaten a default in Athens and a plunge in Italian and Spanish debt that may require the central bank to consider an unlimited guarantee of all euro-region bonds.
“Mr. Draghi, welcome to your new job,” said Holger Schmieding, London-based chief economist at Joh. Berenberg Gossler & Co. “The Greek move makes it all the more important that Italian and euro-zone policy makers, including those from the ECB, build a reliable firewall around Greece to prevent more serious contagion to Italy.”
U.K. Third Quarter Growth Rebounds (Source: Bloomberg)
The U.K. economy grew faster than economists forecast in the third quarter as it rebounded from one-off factors before an escalation of Europe’s debt crisis that threatens to push Britain back into recession. Gross domestic product rose 0.5 percent from the second quarter, when it increased 0.1 percent, the Office for National Statistics in London said today. Economists forecast 0.3 percent, based on the median of 36 estimates in a Bloomberg News survey. A separate report showed manufacturing unexpectedly shrank the most in 28 months in October, pointing to weakness at the start of the fourth quarter.
The Bank of England expanded stimulus for the first time in two years last month and the government is working on a plan to boost lending as Europe’s debt crisis raises the risk of another U.K. recession. With the increase in third-quarter GDP partly due to a rebound from one-time factors, Bank of England Markets Director Paul Fisher has said the pace may not be sustained and there’s a chance of stagnation in the current quarter.
Referendum Will Confirm Greece in Euro: Papandreou (Source: Bloomberg)
Greek Prime Minister George Papandreou said a referendum on Europe’s rescue package will confirm the nation’s membership of the euro as he stuck to plans to hold the vote amid domestic political turmoil. “The referendum will be a clear mandate and strong message within and outside Greece on our European course and our participation in the euro,” Papandreou told his ministers in Athens early today, according to an e-mailed transcript. It will “ensure this course in the most decisive way.” Papandreou will fly to Cannes today to face European leaders surprised by his decision to put the bailout plan to a referendum and call a confidence vote in parliament. His grip on power has weakened after one lawmaker from his socialist Pasok party defected, leaving him with 152 deputies in the 300-seat chamber, while another, Vasso Papandreou, called on the Greek president to move toward forming a national unity government.
U.K. Economy May Struggle to Grow as Recession Risk Mounts (Source: Bloomberg)
Britain’s economic recovery will continue to falter in the current quarter after it struggled to build momentum in the previous three months, economists said. Gross domestic product rose 0.3 percent in third quarter compared with a 0.1 percent increase in the second quarter, according to the median of 36 forecasts in a Bloomberg News survey. The Office for National Statistics will publish the data at 9:30 a.m. in London. Manufacturing probably stagnated in October and services growth slowed, according to separate surveys of economists before reports this week. The Bank of England expanded stimulus for the first time in two years last month and the government is working on a plan to boost lending as Europe’s debt crisis raises the risk of another U.K. recession. With the increase in third-quarter GDP partly due to a rebound from one-off factors, Bank of England Markets Director Paul Fisher said the pace may not be sustained and there’s a chance of stagnation in the current quarter.
EU Leaders Hold Pre-Group of 20 Crisis Talks to Push Greece on Bailout Aid (Source: Bloomberg)
European leaders racing to prevent their week-old debt crisis strategy from unravelling convene emergency talks today to tell Greece there is no alternative to the budget cuts imposed in the bailout plan. Greek Prime Minister George Papandreou, his hold on power weakening, was summoned to Cannes on the eve of a Group of 20 summit where he will hear from French President Nicolas Sarkozy that the “only way to resolve Greek debt problems” is through a deal hammered out last week in a six-day crisis-management marathon. Papandreou triggered the latest upheaval in the two-year- long crisis by abruptly announcing on Oct. 31 a parliamentary confidence vote and his desire to hold a referendum on the rescue pact. Global stocks, the euro and bonds of debt-strapped countries tumbled yesterday as concern of a disorderly Greek default mounted.
RBA Christmas Interest-Rate Cut Signaled by Debt Markets: Australia Credit (Source: Bloomberg)
Australia’s debt market shows investors expect Reserve Bank Governor Glenn Stevens to follow his first rate cut in 2 1/2 years by lowering borrowing costs next month to spur spending in the Christmas holiday season. The implied yield on December interbank cash rate futures was 4.25 percent, indicating a 100 percent chance of a quarter- percentage point drop at the RBA’s Dec. 6 meeting. Australia’s bonds rallied after Stevens reduced the overnight cash-rate target to 4.5 percent yesterday. Three-year bond yields tumbled 12 basis points, or 0.12 percentage points, to 3.65 percent as of 8:43 a.m. in Sydney, which was 338 basis points more than similar Treasuries.
Stevens joined policy makers across the Asia-Pacific region in lowering interest rates as Europe’s debt crisis dims prospects for the world economy and after Australia’s core inflation rate dropped to the weakest in 14 years. The RBA retains the developed world’s highest benchmark borrowing costs as exports to China and India and a A$430 billion ($444 billion) pipeline of resource projects drive growth.
Euro Falls Against Dollar, Yen on Concern Greek Rescue Plan Will Crumble (Source: Bloomberg)
The euro declined against the dollar and yen on concern Greek Prime Minister George Papandreou’s pledge to put the European Union’s financing package to a referendum risks a disorderly default if voters reject it. The 17-nation currency extended a drop from yesterday after Papandreou told ministers his plans for a referendum would send a clear message. A vote of confidence in Parliament is also scheduled to begin today and to conclude at the end of this week. The dollar and yen rose versus most of their 16 major counterparts as Asian stocks extended a global equity slump after renewed speculation that Europe’s debt crisis is worsening boosted appetite for safer assets. “While the majority of the European nations may have the desire to resolve and try to fix things, this is not going to be a quick fix,” said Alex Sinton, a senior dealer at ANZ National Bank Ltd. in Auckland, New Zealand. “The ability of the euro to weaken further is clearly there.”
Asian stocks fell for a third day as concern heightened that Europe’s bailout of debt-ridden Greece will unravel and a report showed U.S. manufacturing slowed, damping the earnings outlook for Asian exporters. James Hardie Industries SE (JHX), the building materials supplier that counts the U.S. as its biggest market, dropped 4.8 percent in Sydney. Nomura Holdings Inc. (8604) sank 4.4 percent after Japan’s largest brokerage said it will eliminate jobs part of a plan to cut costs following its first quarterly loss in more than two years. Samsung Heavy Industries Co., South Korea’s second- biggest shipbuilder by market value, slumped 5.5 percent in Seoul after reporting a 53 percent slump in profit. The MSCI Asia Pacific Index slipped 1.5 percent to 117.25 as of 9:35 a.m. in Tokyo. The measure gained 7.7 percent last month, the most since Sept. 2010, as Europe appeared close to a deal to contain its debt crisis, reports showed the U.S. economy grew faster and China hinted at easier monetary policy.
IMF May Create 6-Month Credit Line for Countries Facing Shocks (Source: Bloomberg)
The International Monetary Fund may create a six-month credit line for countries facing shocks, officials from Group of 20 governments and IMF said, as the European debt crisis rocks global financial markets. The amount would be capped at five times a nation’s contribution to the Washington-based IMF, known as a quota, making the credit line best suited for smaller countries, the people said. It is likely to be endorsed at a meeting of G-20 leaders this week in Cannes, France, where European nations will seek financial support from other members, said the three officials, who declined to be identified because the plan hasn’t been made public.
The instrument would be the latest in a set of IMF tools intended to increase liquidity as Europe’s crisis threatens to spread beyond Greece. It could be used as part of a broader international package to aid larger economies such as Spain, with IMF participation serving to reassure other creditors, said Bessma Momani, a political science professor at the University of Waterloo in Canada.
Volatility Indexes Surge as Greek Bailout Vote Roils Markets (Source: Bloomberg)
Volatility indexes surged, giving the benchmark European measure the biggest two-day jump since May 2010, after Greece’s decision to schedule a vote on the region’s bailout spurred concern the nation will default. The VStoxx Index (V2X), which measures the cost of Euro Stoxx 50 Index options, rose 22 percent to 42.96, extending its two-day increase to 37 percent. The Chicago Board Options Exchange Volatility Index, or VIX, soared 16 percent to 34.77 today, bringing its two-day gain to 42 percent. Gauges of market fear are jumping as speculation about Europe’s debt crisis drowns out earnings and economic news. Germany’s DAX Index rose or fell 3.4 percent on average during the past four days while the Dow Jones Industrial Average’s average intraday move has exceeded 250 points since Oct. 26.
U.S. Stocks Slump Amid Concern Bailout for Greece in Jeopardy (Source: Bloomberg)
U.S. stocks dropped, driving the Standard & Poor’s 500 Index to the biggest two-day slump in a month, on concern that a Greece referendum pledged by Prime Minister George Papandreou may threaten Europe’s bailout. All 10 groups in the S&P 500 fell as gauges of financial, energy and industrial shares lost at least 3 percent. Citigroup Inc. (C) and Morgan Stanley retreated more than 7.6 percent, following a 6.2 percent tumble in European lenders. Exchange operators slumped after U.S. lawmakers said they will propose a tax on financial transactions such as stock and bond trades. The S&P 500 decreased 2.8 percent to 1,218.28 as of 4 p.m. New York time, extending its two-day retreat to 5.2 percent, the biggest drop since Oct. 3. The Dow Jones Industrial Average declined 297.05 points, or 2.5 percent, to 11,657.96 today.
U.S. 30-Year Bonds Hold Biggest Three-Day Gain Since 2008 on Europe Crisis (Source: Bloomberg)
Treasury 30-year bonds held their biggest rally since 2008 on speculation a European plan to solve the region’s debt crisis is faltering. “The core problems still exist in Europe,” said Zeal Yin, a money manager at Taipei-based Shin Kong Life Insurance Co., Taiwan’s second-largest life insurer with the equivalent of $39.9 billion in assets. “The global economy is starting to cool. If the problems persist, record low yields are possible by year-end.” The 30-year rate was little changed at 3 percent as of 9:45 a.m. in Tokyo, according to Bloomberg Bond Trader prices. The 3.75 percent security due in August 2041 changed hands at 114 23/32. The yield has fallen 46 basis points from Oct. 28 through yesterday, the biggest three-day slide since November 2008, according to data compiled by Bloomberg.
U.S. Construction Spending Rose in September for Second Consecutive Month (Source: Bloomberg)
Construction spending in the U.S. rose in September for a second month as gains in private projects outpaced a drop in government outlays. Building outlays increased 0.2 percent after jumping 1.6 percent in August, Commerce Department figures showed today in Washington. The median estimate of economists in a Bloomberg survey called for a 0.3 percent gain. Spending on multifamily housing is helping to lift activity from decade lows as more families opt to rent rather than purchase a new home. While lower interest rates may also help drive investment in commercial projects, overall weakness in the housing market coupled with a reduction in government spending will weigh on the construction industry.
U.S. Manufacturing Probably Grew Faster in October (Source: Bloomberg)
Manufacturing in the U.S. probably expanded at a faster pace in October, driven by gains in exports and consumer spending that are keeping the recovery intact, economists said before a report today. The Institute for Supply Management’s factory index rose to 52 from 51.6 a month earlier, according to the median forecast in a Bloomberg News survey. A level of 50 is the dividing line between growth and contraction. Construction spending rose in September, another report may show. American factories may keep leading the economy as growing demand from emerging economies drives orders and production. The industry is also benefiting from increasing business investment as companies take advantage of tax depreciation allowances on equipment purchased before the end of the year.
Manufacturing in U.S. Comes Close to Stagnating as Global Demand Weakens (Source: Bloomberg)
Manufacturing in the U.S. was close to stagnating in October as cooling global demand prompted factories to pare production and reduce inventories. The Institute for Supply Management’s factory index dropped to 50.8 last month from 51.6 in September, the Tempe, Arizona- based group’s data showed today. A reading of 52 was the median forecast in a Bloomberg News survey of economists. Fifty is the dividing line between growth and contraction. Manufacturing weakened from China to the U.K., partly a reflection of Beijing’s efforts to cool its economy and Europe’s debt crisis. Signs the industry that spearheaded the U.S. recovery is stumbling highlight the risks to growth as Federal Reserve policy makers meet to determine if more monetary easing is needed to spur demand.
“There are concerns that manufacturing in Europe and China are showing signs of softening, and that could potentially feed into the U.S.,” said Ryan Sweet, a senior economist at Moody’s Analytics Inc. in New York. “The markets seem to be more worried about the European sovereign-debt crisis. We’ll likely struggle to surpass third-quarter GDP growth.”
Bernanke Reviving Housing May Rely on Wider Access to Mortgage Refinancing (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke can’t go it alone when it comes to reviving the U.S. housing market. Fed policy makers, who started a two-day meeting today, are considering buying mortgage-backed securities to push down borrowing costs and help homeowners refinance their debt. That would reduce monthly payments, freeing up cash for other purchases that could spur the economy and reduce unemployment, Fed Governor Daniel Tarullo said Oct. 20. Such an effort would save homeowners $60 billion to $80 billion a year, or about 0.5 percent of gross domestic product, so long as the Obama administration succeeds in helping homeowners through a stepped-up refinancing aid plan, said Joseph Gagnon, a former Fed economist. Should the program fail, Fed asset-buying would probably provide homeowners less than half its potential savings, said Gagnon, a senior fellow at the Peterson Institute for International Economics in Washington.
China Inflation Cooling; Wen May Loosen Policies (Source: Bloomberg)
China’s inflation is showing signs of easing further, giving Premier Wen Jiabaomore room to loosen fiscal and monetary policies as Europe’s sovereign-debt crisis threatens exports. An index of manufacturers’ input costs fell the most in 17 months in October, China’s logistics federation and the statistics bureau said yesterday. A separate survey by HSBC Holdings Plc and Markit Economics also showed a decline. China’s central bank has paused in raising interest rates and bank reserve requirements as officials assess the risk that European leaders meeting in Cannes, France, this week will fail to contain the crisis. Inflation may moderate to below 5 percent in November and December, compared with a three-year high of 6.5 percent in July, said Zhu Jianfang, the most accurate forecaster of the number in Bloomberg News surveys over the past two years.
Japan Stocks Decline on Greek Rescue Concern, Slower U.S. Manufacturing (Source: Bloomberg)
Nov. 2 (Bloomberg) -- Japanese stocks fell for a third day, the longest losing streak in a month, as concern heightened that Europe’s bailout of debt-ridden Greece will unravel and a report showed U.S. manufacturing slowed, damping the earnings outlook for Asian exporters. Honda Motor Co., a carmaker that gets 83 percent of its sales abroad, slid 2.7 percent. Mitsui O.S.K. Lines Ltd. led shippers lower after a measure of cargo rates fell yesterday for a fifth day and commodity prices slid. Nomura Holdings Inc. (8604) slumped 3.6 percent after Japan’s largest brokerage said it will consider layoffs as part of a plan to triple cost cuts to $1.2 billion after its first quarterly loss in more than two years. The Nikkei 225 (NKY) Stock Average dropped 1.9 percent to 8,668.40 as of 9:19 a.m. in Tokyo. The broader Topix index fell 2.1 percent to 738.78.
Nomura May Cut Japan Jobs After Quarterly Loss (Source: Bloomberg)
Nomura Holdings Inc. (8604), Japan’s largest brokerage, said it will consider eliminating jobs at home as part of a plan to triple cost cuts to $1.2 billion following its first quarterly loss in more than two years. While most of the expense reductions will be in Europe, “we’ll also target Japan, focusing on the wholesale business,” Chief Financial Officer Junko Nakagawa told reporters yesterday in Tokyo. The company posted a 46.1 billion yen ($590 million) loss for the three months ended Sept. 30, wider than the 35 billion yen average estimate among analysts surveyed. Nakagawa’s remarks indicate Nomura may trim domestic payrolls to revive profit that has eroded since the purchase of Lehman Brothers Holdings Inc.’s Asian and European operations in 2008. Staffing costs will account for about 70 percent of the additional $800 million of curtailed expenses, Deputy President Takumi Shibata said on a conference call yesterday.
European Stocks Sink Most in Five Weeks on Greece Bailout Vote; Banks Drop (Source: Bloomberg)
European stocks sank the most in five weeks, as Greece’s government called a referendum on its latest bailout package, spurring concern that the country may default. Credit Suisse Group AG (CSGN) and Danske Bank A/S led a selloff in lenders, both sliding more than 6.5 percent, after posting earnings that fell short of analysts’ estimates. National Bank of Greece SA (ETE) sank 15 percent to its lowest price since 1992 in Athens. Mining companies tumbled after a gauge of Chinese manufacturing dropped to the lowest level since February 2009. The Stoxx Europe 600 Index slid 3.5 percent to 235.06 at the close in London, for the biggest plunge since Sept. 22, extending yesterday’s 2.2 percent selloff and paring last month’s biggest advance since 2009. The VStoxx Index (V2X), which measures the cost of protecting against a decline in shares on the Euro Stoxx 50 Index, jumped 22 percent to 42.96, its biggest gain since Aug. 18.
Italian Stocks Slump Most Since 2008 as Europe Debt Crisis Concern Returns (Source: Bloomberg)
Italian stocks slumped the most in three years as Greek Prime Minister George Papandreou’s call for a referendum on the European Union’s rescue agreement raised concern that efforts to avoid a default will be derailed. The benchmark FTSE MIB Index (FTSEMIB) lost 1,089.49, or 6.8 percent, to 14,928.24 at the close of trading in Milan, the largest decline since October 2008. The gauge has retreated 26 percent this year. Intesa Sanpaolo tumbled 16 percent to 1.09 euros and UniCredit SpA (UCG) sank 12 percent to 74.3 euro cents as banks paced the selloff. “The move by the Greek prime minster to hold a referendum on the EU bailout deal was a real surprise,” said Joshua Raymond, a London-based market strategist at City Index Ltd. “Given the public antipathy towards the austerity plans and the fact that the government has such a low approval rating, one questions where the public support for the package will come from and where that will leave Greece.”
Greek Referendum to Hinder IMF, EU Aid (Source: Bloomberg)
A Greek referendum on its latest bailout package will hinder the next installment of aid funds by the International Monetary Fund and the European Union, Dutch Finance Minister Jan Kees de Jager said. “This hinders the planning of the IMF and the euro zone. It creates a problem for the whole sixth tranche,” De Jager told parliament in The Hague late last night. “I can imagine that it will be very difficult for the IMF if there is uncertainty about the sustainability.” The new round of political turmoil throws into doubt Greece’s ability to access the emergency funding that’s keeping its finances afloat. The IMF’s executive board was due to meet in mid-November to decide on paying its part of the sixth bailout tranche, which is worth a total of 8 billion euros ($11 billion). The Netherlands and euro-zone countries including Germany and France seek to minimize the damage from a “very unfortunate” referendum called by Greek Prime Minister George Papandreou, Dutch Prime Minister Mark Rutte told parliament.
Draghi’s First Day as Head of ECB Blighted as Papandreou Seeks Referendum (Source: Bloomberg)
Mario Draghi’s first day as head of the European Central Bank was blighted by George Papandreou. Italian bonds slid and the risk premium between German debt and the rest of the euro area increased after the Greek prime minister announced late yesterday he will hold a referendum on the terms of his country’s bailout. Papandreou’s gambit, hours before Draghi succeeded Jean- Claude Trichet, exposed the political pitfalls in the fight to keep the euro from blowing apart and adds to the pressure on the ECB to keep buying distressed bonds. An ultimate rejection of the rescue deal by the Greek electorate would threaten a default in Athens and a plunge in Italian and Spanish debt that may require the central bank to consider an unlimited guarantee of all euro-region bonds.
“Mr. Draghi, welcome to your new job,” said Holger Schmieding, London-based chief economist at Joh. Berenberg Gossler & Co. “The Greek move makes it all the more important that Italian and euro-zone policy makers, including those from the ECB, build a reliable firewall around Greece to prevent more serious contagion to Italy.”
U.K. Third Quarter Growth Rebounds (Source: Bloomberg)
The U.K. economy grew faster than economists forecast in the third quarter as it rebounded from one-off factors before an escalation of Europe’s debt crisis that threatens to push Britain back into recession. Gross domestic product rose 0.5 percent from the second quarter, when it increased 0.1 percent, the Office for National Statistics in London said today. Economists forecast 0.3 percent, based on the median of 36 estimates in a Bloomberg News survey. A separate report showed manufacturing unexpectedly shrank the most in 28 months in October, pointing to weakness at the start of the fourth quarter.
The Bank of England expanded stimulus for the first time in two years last month and the government is working on a plan to boost lending as Europe’s debt crisis raises the risk of another U.K. recession. With the increase in third-quarter GDP partly due to a rebound from one-time factors, Bank of England Markets Director Paul Fisher has said the pace may not be sustained and there’s a chance of stagnation in the current quarter.
Referendum Will Confirm Greece in Euro: Papandreou (Source: Bloomberg)
Greek Prime Minister George Papandreou said a referendum on Europe’s rescue package will confirm the nation’s membership of the euro as he stuck to plans to hold the vote amid domestic political turmoil. “The referendum will be a clear mandate and strong message within and outside Greece on our European course and our participation in the euro,” Papandreou told his ministers in Athens early today, according to an e-mailed transcript. It will “ensure this course in the most decisive way.” Papandreou will fly to Cannes today to face European leaders surprised by his decision to put the bailout plan to a referendum and call a confidence vote in parliament. His grip on power has weakened after one lawmaker from his socialist Pasok party defected, leaving him with 152 deputies in the 300-seat chamber, while another, Vasso Papandreou, called on the Greek president to move toward forming a national unity government.
U.K. Economy May Struggle to Grow as Recession Risk Mounts (Source: Bloomberg)
Britain’s economic recovery will continue to falter in the current quarter after it struggled to build momentum in the previous three months, economists said. Gross domestic product rose 0.3 percent in third quarter compared with a 0.1 percent increase in the second quarter, according to the median of 36 forecasts in a Bloomberg News survey. The Office for National Statistics will publish the data at 9:30 a.m. in London. Manufacturing probably stagnated in October and services growth slowed, according to separate surveys of economists before reports this week. The Bank of England expanded stimulus for the first time in two years last month and the government is working on a plan to boost lending as Europe’s debt crisis raises the risk of another U.K. recession. With the increase in third-quarter GDP partly due to a rebound from one-off factors, Bank of England Markets Director Paul Fisher said the pace may not be sustained and there’s a chance of stagnation in the current quarter.
EU Leaders Hold Pre-Group of 20 Crisis Talks to Push Greece on Bailout Aid (Source: Bloomberg)
European leaders racing to prevent their week-old debt crisis strategy from unravelling convene emergency talks today to tell Greece there is no alternative to the budget cuts imposed in the bailout plan. Greek Prime Minister George Papandreou, his hold on power weakening, was summoned to Cannes on the eve of a Group of 20 summit where he will hear from French President Nicolas Sarkozy that the “only way to resolve Greek debt problems” is through a deal hammered out last week in a six-day crisis-management marathon. Papandreou triggered the latest upheaval in the two-year- long crisis by abruptly announcing on Oct. 31 a parliamentary confidence vote and his desire to hold a referendum on the rescue pact. Global stocks, the euro and bonds of debt-strapped countries tumbled yesterday as concern of a disorderly Greek default mounted.
RBA Christmas Interest-Rate Cut Signaled by Debt Markets: Australia Credit (Source: Bloomberg)
Australia’s debt market shows investors expect Reserve Bank Governor Glenn Stevens to follow his first rate cut in 2 1/2 years by lowering borrowing costs next month to spur spending in the Christmas holiday season. The implied yield on December interbank cash rate futures was 4.25 percent, indicating a 100 percent chance of a quarter- percentage point drop at the RBA’s Dec. 6 meeting. Australia’s bonds rallied after Stevens reduced the overnight cash-rate target to 4.5 percent yesterday. Three-year bond yields tumbled 12 basis points, or 0.12 percentage points, to 3.65 percent as of 8:43 a.m. in Sydney, which was 338 basis points more than similar Treasuries.
Stevens joined policy makers across the Asia-Pacific region in lowering interest rates as Europe’s debt crisis dims prospects for the world economy and after Australia’s core inflation rate dropped to the weakest in 14 years. The RBA retains the developed world’s highest benchmark borrowing costs as exports to China and India and a A$430 billion ($444 billion) pipeline of resource projects drive growth.
Euro Falls Against Dollar, Yen on Concern Greek Rescue Plan Will Crumble (Source: Bloomberg)
The euro declined against the dollar and yen on concern Greek Prime Minister George Papandreou’s pledge to put the European Union’s financing package to a referendum risks a disorderly default if voters reject it. The 17-nation currency extended a drop from yesterday after Papandreou told ministers his plans for a referendum would send a clear message. A vote of confidence in Parliament is also scheduled to begin today and to conclude at the end of this week. The dollar and yen rose versus most of their 16 major counterparts as Asian stocks extended a global equity slump after renewed speculation that Europe’s debt crisis is worsening boosted appetite for safer assets. “While the majority of the European nations may have the desire to resolve and try to fix things, this is not going to be a quick fix,” said Alex Sinton, a senior dealer at ANZ National Bank Ltd. in Auckland, New Zealand. “The ability of the euro to weaken further is clearly there.”
20111102 0947 Global Commodities Related News.
Commodities Fall to One-Week Low on Greece Concerns, China Manufacturing (Source: Bloomberg)
Commodities fell to a one-week low, led by industrial metals, amid concern that Europe’s bailout of Greece will be derailed, while manufacturing in China slowed. The Standard & Poor’s GSCI index of 24 raw materials slumped 1 percent to settle at 641.69 at 3:46 p.m. New York time. Earlier, the gauge touched 627.96, the lowest since Oct. 21. In London, nickel tumbled 5 percent, while aluminum, lead and zinc fell more than 4 percent. European leaders pressed Greece to uphold the terms of a bailout in a bid to stop the deal from unraveling on the eve of a global summit. Greek Prime Minister George Papandreou said he would put the plan to a referendum. A manufacturing index fell to the lowest since February 2009 in China, the world’s leading user of industrial metals.
Corn (Source: CME)
US corn futures stage a surprising late rally, ending higher despite outside-market pressure, as end-user buying come in. Traders say bargain-hunters convinced prices were poised to climb boosted corn, although the extent of the rally, which occurred in the last 30 minutes of trade, suggested something else at play. Linn Group's Jim Riley says perhaps the rally stemmed from MF's liquidation, which "could mean liquidating shorts, too." He also notes traders were awaiting new crop estimates from FCStone due after the close. CBOT December corn ended up 7 1/4c at $6.54 1/4 per bushel, up 22c from its intraday low.
Wheat (Source: CME)
CBOT wheat futures end slightly higher, shrugging off outside market pressure and rebounding late on a rally in corn. Market ended well off its daily lows, as did corn, thanks to gains in the last 30 minutes of trade. Stronger US dollar and slumping equities had kept the market under pressure most of the day. Some analysts say that with lackluster demand, wheat will continue to depend on corn for price strength. Worries about hard red winter wheat crop because of drought in the Southern Plains limiting the market's downside. CBOT Dec wheat ends up 1 3/4c to $6.30, 16c off intraday low. MGEX Dec wheat ends down 3c to $9.05 3/4; KCBT Dec wheat closes down 6 1/2c to $7.18 1/2.
Rice (Source: CME)
US rice futures end lower on outside-market pressure and weak demand as analysts note weak export demand for US rice and comfortable world supplies. But traders are also watching Asian supplies as recent floods in the region have prompted worries. Closer to home, weaker equities and a stronger dollar hurt rice, with the CBOT November contract falling 10c to $16.54/hundredweight.
US corn drops for 2nd day, spooked by MF Global
SINGAPORE, Nov 1 (Reuters) - U.S. corn slid for a second straight day, while soybeans and wheat came under pressure as the collapse of broker-dealer MF Global prompted liquidation amid renewed concerns over Europe's debt crisis.
"The market is looking at continued uncertainty regarding the state of the European economy," said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia.
Indonesia cuts 2011 rice output outlook to 65.4 mln T
JAKARTA, Nov 1 (Reuters) - Indonesia sees unmilled rice production at 65.4 million tonnes this year, down 3.9 percent from an earlier forecast and nearly 1 percent below last year's output, the statistics bureau said on Tuesday.
Hot weather and disease will push output below the July forecast of 68.06 million tonnes, and also down from the 66 million tonnes last year, it said.
Argentine truckers reach deal, end Rosario strike
BUENOS AIRES, Oct 31 (Reuters) - Argentine trucking companies reached a deal on Monday to lift a strike that they had called at the country's main grains hub Rosario.
The work stoppage was called last week but had not been in force long enough to reduce exports from agricultural powerhouse Argentina, which is the world's No. 1 supplier of soyoil and soymeal and its No. 2 supplier of corn.
U.S. harvest in eastern Midwest to stay slow
CHICAGO, Oct 31 (Reuters) - Some rainstorms on Wednesday and Thursday could further delay the U.S. corn and soybean harvests in areas east of the Mississippi River this week, an agricultural meteorologist said on Monday.
Western areas of the Corn Belt should remain dry during the next few days, but rain was forecast for the middle of the week which will cause farmers to slow their combines, Telvent DTN meteorologist Joel Burgio said.
Ukraine Wheat Supplies Emerge More Competitive Than Russian
Ukrainian origin wheat has emerged as more competitive than Russian supplies, the country's traditional competitor, after supplying the world's largest importer of wheat, Egypt, in a tender. Egypt's state-owned wheat buyer, the General Authority for Supply Commodities, or GASC, said it bought a total of 180,000 metric tons of Ukrainian and Russian wheat for shipment Jan. 21-31. GASC bought 60,000 tons of Ukrainian wheat from Toepfer for $247.92 a ton and 60,000 tons of Russian wheat from Aston for $252.50/ton, according to GASC officials. The wheat buyer also purchased 60,000 tons of Russian wheat from Nidera for $252.50/ton. GASC's purchase marks the second time the wheat-buyer has bought Ukrainian wheat since Egyptian authorities suspended wheat imports from Ukraine in 2008 over quality concerns. According to analysts, a lack of rail cars to transport wheat in Russia has been responsible for higher prices for the grain.
"A lack of rail cars has reduced trading and purchasing activity on the Russian grains market," Svetlana Sinkovskaya, marketing manager at Ukrainian agricultural analysis body APK-Inform said. "According to Russian market participants, because of the transportation issues, most trading companies cannot deliver timely grains to the destination place," Sinkovskaya added.
ASX Suspends Wool, Grain Trade Due To MF Global
Australia's bourse operator joined the list of global exchanges to limit MF Global Holdings Ltd's ability to trade, temporarily prohibiting not just the U.S. brokerage's trading of agricultural commodity contracts but suspending the entire nation's wool and grain derivatives trade. Analysts now warn the global wool market could face a long period of instability, because Australia is the largest exporter of the commodity. The Australian Securities Exchange, or ASX Ltd. took the decision to suspend trade in Australian wool and grains futures and options due to outstanding contracts held by the brokerage, a spokesman for the exchange told Dow Jones Newswires.
"Given the significant percentage of open interest held by MF Global U.K. Ltd. in grain and wool futures and options, these markets have been suspended in order to maintain a fair, orderly and transparent market, and to provide an opportunity for parties to consider the specific implications of the default of MF Global U.K. Ltd.," a spokesman for the ASX said. Exchanges CME Group Inc. and IntercontinentalExchange Inc. halted trading by MF Global employees in Chicago, New York, and Europe. Firms that used MF Global to clear their trades were limited to only liquidating existing positions. MF Global is one of the largest participants on Australia's agricultural bourse contracts by market share, with the brokerage executing over 80% of turnover for the country's wool contracts, the ASX said on its website.
The exchange said the wool futures and options market will reopen at 1030 local time Wednesday, while the grains market will reopen Wednesday at 1100. Benchmark wool futures in the world's biggest producer hit a high of $14.85 a kilo in June, double their price from a year ago, following devastating floods in Australia. The ASX offers futures contracts for western Australian wheat, canola, sorghum, Australian milling wheat and feed barley.
Sao Martinho takes stake in Brazil cane mill
RIO DE JANEIRO, Oct 31 (Reuters) - Brazilian sugar and ethanol producer Sao Martinho said it bought a 32 percent stake in cane mill Santa Cruz Acucar and an 18 percent stake in its agricultural management company Agropequaria Boa Vista for a combined 187.4 million reais ($110 million).
This is that latest in a long series of mergers and acquisitions that has swept through Brazil's cane industry since the financial crisis in 2008 weakened many over-leveraged mills to the point that they became soft takeover targets for deep-pocketed milling groups like Sao Martinho.
Brazil CS sugar output trimmed to 31.1 mln T-JOB
SAO PAULO, Oct 31 (Reuters) - Sugar production in Brazil's main center-south cane region should total 31.1 million tonnes, JOB Economia analysts said on Monday, down from its 32.3 million tonnes view from August but still closer to the high-end of most industry estimates.
Cane output in the center-south was put at 502 million tonnes, 20 million tonnes lower than JOB's forecast in August.
Ivorian cocoa arrivals pick up, quality a concern
ABIDJAN, Oct 31 (Reuters) - Ivorian cocoa arrivals picked up last week, and exporters said farmers had begun to sell some hoarded beans in order to pay school fees and prepare for an upcoming Muslim holiday, but bean quality was a concern.
Meanwhile, there were mixed weather reports from across the West African nation. Farmers in some areas complained that too much rain was causing disease to spread, while others said the balance of rain and sun was perfect.
World 2010/11 coffee exports hit record 103.1M bags-ICO
LONDON, Oct 31 (Reuters) - World coffee exports rose 9.4 percent in 2010/11 (October to September) to 103.1 million 60-kg bags, the International Coffee Organization said on Monday.
This compares with 94.3 million bags in 2009/10.
Ghana cocoa purchases 70 pct up after first week
ACCRA, Oct 31 (Reuters) - Ghana's cocoa purchases were 151,976 tonnes in the first week of the 2011/12 season, 70 percent higher than figures for the same stage last year, data from industry regulator Cocobod showed on Monday.
A top official at Cocobod said the high volume was "not surprising" and it was due to farmers and licensed buyers holding on to beans from the end of last season in the hope prices set by the government would be higher this year.
India ministers agree on sugar output, may allow exports soon
NEW DELHI, Oct 31 (Reuters) - India could produce 24.7 million to 25.0 million tonnes of sugar in the new season that began this month, Food Minister K.V. Thomas said on Monday, a figure agreed with the farm ministry which had previously forecast 26 million tonnes.
The agreement between the farm and food ministries over the 2011/12 output paves the way for the first tranche of sugar exports in the new season.
Oil Drops a Fourth Day Amid Concern Greek Referendum Raises Default Risk (Source: Bloomberg)
Oil fell for a fourth day amid concern that Greece will reject Europe’s bailout plan in a referendum, pushing the nation closer to default and worsening a debt crisis that threatens economic growth. Crude for December delivery slid as much as 75 cents, or 0.8 percent, to $91.44 a barrel in electronic trading on the New York Mercantile Exchange and was at $91.45 at 6:29 a.m. Singapore time. The contract yesterday declined 1.1 percent to $92.19. Prices are up 9 percent the past year. Brent oil dropped 2 cents to $109.54 a barrel on the London-based ICE Futures Europe exchange yesterday. The premium to Nymex crude widened to $17.35. The European benchmark traded at a $16.37 premium on Oct. 31, the narrowest since June 28.
Drilling boom heralds big oil output rise: John Kemp
--John Kemp is a Reuters market analyst. The views expressed are his own--
LONDON, Oct 31 (Reuters) - Soaring oil prices have spurred a worldwide drilling boom that should result in much-faster growth in oil production over the next 2-3 years, helping meet strong growth in consumption, and tempering upward pressure on prices.
The number of rotary rigs drilling for oil and gas stands at the highest level for over two decades, according to oilfield services company Baker Hughes.
Brent spreads point to easing oil market: John Kemp
LONDON, Oct 31 (Reuters) - Global oil markets have softened significantly in the last two weeks as mounting evidence of slowing consumption and the resumption of Libyan oil exports eases fears about near-term shortages.
While tightening of U.S. oil markets and WTI's shift into a small backwardation has captured the headlines, the Brent market, which is more representative of global supply and demand trends, has moved briskly in the other direction
Oil prices slip; FOMC, G20 meetings eyed
PERTH, Nov 1 (Reuters) - Oil prices slipped more than $1 on Tuesday on a stronger U.S. dollar, continuing uncertainty about the resolution of the euro zone's debt crisis and the collapse of MF Global Holdings.
"As cooler heads prevail and look around and actually start analysing the euro zone situation, they realise we still got a ways to go," said Tony Nunan, a risk manager with Tokyo-based Mitsubishi Corp.
Iraq oil exports 2.088 mln bpd in October-SOMO
BAGHDAD, Nov 1 (Reuters) - Iraq's oil exports were 2.088 million barrels per day in October versus 2.101 million bpd in September, the head of the State Oil Marketing Organisation said on Tuesday.
Exports included 1.628 million bpd from the southern oil hub of Basra and 460,000 bpd from the northern fields around Kirkuk, which included 8,000 bpd sent by truck to Jordan, SOMO chief Falah Alamri said.
Brazil crude exports to triple to 1.5-1.6 mln bpd by 2020-Petrobras
SINGAPORE, Nov 1 (Reuters) - Brazil's crude exports will triple to 1.5-1.6 million barrels per day (bpd) by 2020, from 520,000 bpd now, Petrobras chief executive officer Jose Sergio Gabrielli said on Tuesday.
He said crude exports to the United States and China will double to 400,000-450,000 bpd by 2020.
S.Korea Oct crude imports up 8.3 pct y/y -prelim data
SEOUL, Nov 1 (Reuters) - South Korea's crude oil imports in October rose 8.3 percent from a year earlier, tentative customs figures released by the economy ministry on Tuesday showed.
Final import figures will be available later in the month from state-run Korea National Oil Corp (KNOC). The country's crude imports in September rose 7.5 percent from a year earlier thanks to bullish regional demand for oil products.
Asia to reap rewards of Brazil's crude export boost
SINGAPORE, Nov 1 (Reuters) - Asian refiners look set to be big winners as Brazil boosts sweet crude production from its bountiful deepwater pre-salt region in the second half of the decade.
Exports from Brazil, home to four of the world's largest oil finds in the past 10 years, will have to look for buyers in fast-growing Asia as the United States will use more of its own shale oil output towards the end of the decade, pushing West African imports back to Europe.
IEA not looking at another oil stocks release
SINGAPORE, Nov 1 (Reuters) - The International Energy Agency is not looking at another release of emergency oil stocks as the global supply situation has changed from that prevailing when inventories were released earlier this year, Richard Jones, deputy director of the agency, said.
The release decision was taken with the supply situation in mind, and not oil prices, Jones said. The supply outlook is set to change with Libyan fields coming back on line and Iraq raising production.
Top Gold Forecasters See Bullion Rallying to Record by March: Commodities (Source: Bloomberg)
The most accurate forecasters say gold will rebound from its biggest monthly plunge since 2008 and reach a record by March because economic growth is stagnating and Europe’s debt crisis is unresolved. Futures traded in New York may rise 14 percent to $1,950 an ounce by the end of the first quarter, according to the median of estimates compiled by Bloomberg. The predictions are from eight of the top 10 analysts tracked by Bloomberg over the past eight quarters. Two declined to give forecasts. Holdings in exchange-traded products backed by bullion rose the most in three months in October, and the most-widely held option gives owners the right to buy gold at $2,000 by Nov. 22. Demand for the metal accelerated since May as slowing growth and mounting concern that European leaders will fail to contain the region’s debt crisis caused $7.5 trillion to be erased from the value of global equities.
Einhorn Bets Gold Mining Companies Will Beat Bullion (Source: Bloomberg)
Hedge-fund manager David Einhorn is betting that gold-mining companies will outperform bullion, reversing the trend from the past six months. “A substantial disconnect has developed between the price of gold and the mining companies,” Einhorn said today in a conference call discussing results at Greenlight Capital Re Ltd. (GLRE), the reinsurer where he is chairman. The reinsurer cut holdings of the commodity in the third quarter and moved funds into the Market Vectors Gold Miners ETF, Einhorn said. The exchange-traded fund lost 5.4 percent in the six months ended yesterday, while bullion gained 11 percent.
Commodities fell to a one-week low, led by industrial metals, amid concern that Europe’s bailout of Greece will be derailed, while manufacturing in China slowed. The Standard & Poor’s GSCI index of 24 raw materials slumped 1 percent to settle at 641.69 at 3:46 p.m. New York time. Earlier, the gauge touched 627.96, the lowest since Oct. 21. In London, nickel tumbled 5 percent, while aluminum, lead and zinc fell more than 4 percent. European leaders pressed Greece to uphold the terms of a bailout in a bid to stop the deal from unraveling on the eve of a global summit. Greek Prime Minister George Papandreou said he would put the plan to a referendum. A manufacturing index fell to the lowest since February 2009 in China, the world’s leading user of industrial metals.
Corn (Source: CME)
US corn futures stage a surprising late rally, ending higher despite outside-market pressure, as end-user buying come in. Traders say bargain-hunters convinced prices were poised to climb boosted corn, although the extent of the rally, which occurred in the last 30 minutes of trade, suggested something else at play. Linn Group's Jim Riley says perhaps the rally stemmed from MF's liquidation, which "could mean liquidating shorts, too." He also notes traders were awaiting new crop estimates from FCStone due after the close. CBOT December corn ended up 7 1/4c at $6.54 1/4 per bushel, up 22c from its intraday low.
Wheat (Source: CME)
CBOT wheat futures end slightly higher, shrugging off outside market pressure and rebounding late on a rally in corn. Market ended well off its daily lows, as did corn, thanks to gains in the last 30 minutes of trade. Stronger US dollar and slumping equities had kept the market under pressure most of the day. Some analysts say that with lackluster demand, wheat will continue to depend on corn for price strength. Worries about hard red winter wheat crop because of drought in the Southern Plains limiting the market's downside. CBOT Dec wheat ends up 1 3/4c to $6.30, 16c off intraday low. MGEX Dec wheat ends down 3c to $9.05 3/4; KCBT Dec wheat closes down 6 1/2c to $7.18 1/2.
Rice (Source: CME)
US rice futures end lower on outside-market pressure and weak demand as analysts note weak export demand for US rice and comfortable world supplies. But traders are also watching Asian supplies as recent floods in the region have prompted worries. Closer to home, weaker equities and a stronger dollar hurt rice, with the CBOT November contract falling 10c to $16.54/hundredweight.
US corn drops for 2nd day, spooked by MF Global
SINGAPORE, Nov 1 (Reuters) - U.S. corn slid for a second straight day, while soybeans and wheat came under pressure as the collapse of broker-dealer MF Global prompted liquidation amid renewed concerns over Europe's debt crisis.
"The market is looking at continued uncertainty regarding the state of the European economy," said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia.
Indonesia cuts 2011 rice output outlook to 65.4 mln T
JAKARTA, Nov 1 (Reuters) - Indonesia sees unmilled rice production at 65.4 million tonnes this year, down 3.9 percent from an earlier forecast and nearly 1 percent below last year's output, the statistics bureau said on Tuesday.
Hot weather and disease will push output below the July forecast of 68.06 million tonnes, and also down from the 66 million tonnes last year, it said.
Argentine truckers reach deal, end Rosario strike
BUENOS AIRES, Oct 31 (Reuters) - Argentine trucking companies reached a deal on Monday to lift a strike that they had called at the country's main grains hub Rosario.
The work stoppage was called last week but had not been in force long enough to reduce exports from agricultural powerhouse Argentina, which is the world's No. 1 supplier of soyoil and soymeal and its No. 2 supplier of corn.
U.S. harvest in eastern Midwest to stay slow
CHICAGO, Oct 31 (Reuters) - Some rainstorms on Wednesday and Thursday could further delay the U.S. corn and soybean harvests in areas east of the Mississippi River this week, an agricultural meteorologist said on Monday.
Western areas of the Corn Belt should remain dry during the next few days, but rain was forecast for the middle of the week which will cause farmers to slow their combines, Telvent DTN meteorologist Joel Burgio said.
Ukraine Wheat Supplies Emerge More Competitive Than Russian
Ukrainian origin wheat has emerged as more competitive than Russian supplies, the country's traditional competitor, after supplying the world's largest importer of wheat, Egypt, in a tender. Egypt's state-owned wheat buyer, the General Authority for Supply Commodities, or GASC, said it bought a total of 180,000 metric tons of Ukrainian and Russian wheat for shipment Jan. 21-31. GASC bought 60,000 tons of Ukrainian wheat from Toepfer for $247.92 a ton and 60,000 tons of Russian wheat from Aston for $252.50/ton, according to GASC officials. The wheat buyer also purchased 60,000 tons of Russian wheat from Nidera for $252.50/ton. GASC's purchase marks the second time the wheat-buyer has bought Ukrainian wheat since Egyptian authorities suspended wheat imports from Ukraine in 2008 over quality concerns. According to analysts, a lack of rail cars to transport wheat in Russia has been responsible for higher prices for the grain.
"A lack of rail cars has reduced trading and purchasing activity on the Russian grains market," Svetlana Sinkovskaya, marketing manager at Ukrainian agricultural analysis body APK-Inform said. "According to Russian market participants, because of the transportation issues, most trading companies cannot deliver timely grains to the destination place," Sinkovskaya added.
ASX Suspends Wool, Grain Trade Due To MF Global
Australia's bourse operator joined the list of global exchanges to limit MF Global Holdings Ltd's ability to trade, temporarily prohibiting not just the U.S. brokerage's trading of agricultural commodity contracts but suspending the entire nation's wool and grain derivatives trade. Analysts now warn the global wool market could face a long period of instability, because Australia is the largest exporter of the commodity. The Australian Securities Exchange, or ASX Ltd. took the decision to suspend trade in Australian wool and grains futures and options due to outstanding contracts held by the brokerage, a spokesman for the exchange told Dow Jones Newswires.
"Given the significant percentage of open interest held by MF Global U.K. Ltd. in grain and wool futures and options, these markets have been suspended in order to maintain a fair, orderly and transparent market, and to provide an opportunity for parties to consider the specific implications of the default of MF Global U.K. Ltd.," a spokesman for the ASX said. Exchanges CME Group Inc. and IntercontinentalExchange Inc. halted trading by MF Global employees in Chicago, New York, and Europe. Firms that used MF Global to clear their trades were limited to only liquidating existing positions. MF Global is one of the largest participants on Australia's agricultural bourse contracts by market share, with the brokerage executing over 80% of turnover for the country's wool contracts, the ASX said on its website.
The exchange said the wool futures and options market will reopen at 1030 local time Wednesday, while the grains market will reopen Wednesday at 1100. Benchmark wool futures in the world's biggest producer hit a high of $14.85 a kilo in June, double their price from a year ago, following devastating floods in Australia. The ASX offers futures contracts for western Australian wheat, canola, sorghum, Australian milling wheat and feed barley.
Sao Martinho takes stake in Brazil cane mill
RIO DE JANEIRO, Oct 31 (Reuters) - Brazilian sugar and ethanol producer Sao Martinho said it bought a 32 percent stake in cane mill Santa Cruz Acucar and an 18 percent stake in its agricultural management company Agropequaria Boa Vista for a combined 187.4 million reais ($110 million).
This is that latest in a long series of mergers and acquisitions that has swept through Brazil's cane industry since the financial crisis in 2008 weakened many over-leveraged mills to the point that they became soft takeover targets for deep-pocketed milling groups like Sao Martinho.
Brazil CS sugar output trimmed to 31.1 mln T-JOB
SAO PAULO, Oct 31 (Reuters) - Sugar production in Brazil's main center-south cane region should total 31.1 million tonnes, JOB Economia analysts said on Monday, down from its 32.3 million tonnes view from August but still closer to the high-end of most industry estimates.
Cane output in the center-south was put at 502 million tonnes, 20 million tonnes lower than JOB's forecast in August.
Ivorian cocoa arrivals pick up, quality a concern
ABIDJAN, Oct 31 (Reuters) - Ivorian cocoa arrivals picked up last week, and exporters said farmers had begun to sell some hoarded beans in order to pay school fees and prepare for an upcoming Muslim holiday, but bean quality was a concern.
Meanwhile, there were mixed weather reports from across the West African nation. Farmers in some areas complained that too much rain was causing disease to spread, while others said the balance of rain and sun was perfect.
World 2010/11 coffee exports hit record 103.1M bags-ICO
LONDON, Oct 31 (Reuters) - World coffee exports rose 9.4 percent in 2010/11 (October to September) to 103.1 million 60-kg bags, the International Coffee Organization said on Monday.
This compares with 94.3 million bags in 2009/10.
Ghana cocoa purchases 70 pct up after first week
ACCRA, Oct 31 (Reuters) - Ghana's cocoa purchases were 151,976 tonnes in the first week of the 2011/12 season, 70 percent higher than figures for the same stage last year, data from industry regulator Cocobod showed on Monday.
A top official at Cocobod said the high volume was "not surprising" and it was due to farmers and licensed buyers holding on to beans from the end of last season in the hope prices set by the government would be higher this year.
India ministers agree on sugar output, may allow exports soon
NEW DELHI, Oct 31 (Reuters) - India could produce 24.7 million to 25.0 million tonnes of sugar in the new season that began this month, Food Minister K.V. Thomas said on Monday, a figure agreed with the farm ministry which had previously forecast 26 million tonnes.
The agreement between the farm and food ministries over the 2011/12 output paves the way for the first tranche of sugar exports in the new season.
Oil Drops a Fourth Day Amid Concern Greek Referendum Raises Default Risk (Source: Bloomberg)
Oil fell for a fourth day amid concern that Greece will reject Europe’s bailout plan in a referendum, pushing the nation closer to default and worsening a debt crisis that threatens economic growth. Crude for December delivery slid as much as 75 cents, or 0.8 percent, to $91.44 a barrel in electronic trading on the New York Mercantile Exchange and was at $91.45 at 6:29 a.m. Singapore time. The contract yesterday declined 1.1 percent to $92.19. Prices are up 9 percent the past year. Brent oil dropped 2 cents to $109.54 a barrel on the London-based ICE Futures Europe exchange yesterday. The premium to Nymex crude widened to $17.35. The European benchmark traded at a $16.37 premium on Oct. 31, the narrowest since June 28.
Drilling boom heralds big oil output rise: John Kemp
--John Kemp is a Reuters market analyst. The views expressed are his own--
LONDON, Oct 31 (Reuters) - Soaring oil prices have spurred a worldwide drilling boom that should result in much-faster growth in oil production over the next 2-3 years, helping meet strong growth in consumption, and tempering upward pressure on prices.
The number of rotary rigs drilling for oil and gas stands at the highest level for over two decades, according to oilfield services company Baker Hughes.
Brent spreads point to easing oil market: John Kemp
LONDON, Oct 31 (Reuters) - Global oil markets have softened significantly in the last two weeks as mounting evidence of slowing consumption and the resumption of Libyan oil exports eases fears about near-term shortages.
While tightening of U.S. oil markets and WTI's shift into a small backwardation has captured the headlines, the Brent market, which is more representative of global supply and demand trends, has moved briskly in the other direction
Oil prices slip; FOMC, G20 meetings eyed
PERTH, Nov 1 (Reuters) - Oil prices slipped more than $1 on Tuesday on a stronger U.S. dollar, continuing uncertainty about the resolution of the euro zone's debt crisis and the collapse of MF Global Holdings.
"As cooler heads prevail and look around and actually start analysing the euro zone situation, they realise we still got a ways to go," said Tony Nunan, a risk manager with Tokyo-based Mitsubishi Corp.
Iraq oil exports 2.088 mln bpd in October-SOMO
BAGHDAD, Nov 1 (Reuters) - Iraq's oil exports were 2.088 million barrels per day in October versus 2.101 million bpd in September, the head of the State Oil Marketing Organisation said on Tuesday.
Exports included 1.628 million bpd from the southern oil hub of Basra and 460,000 bpd from the northern fields around Kirkuk, which included 8,000 bpd sent by truck to Jordan, SOMO chief Falah Alamri said.
Brazil crude exports to triple to 1.5-1.6 mln bpd by 2020-Petrobras
SINGAPORE, Nov 1 (Reuters) - Brazil's crude exports will triple to 1.5-1.6 million barrels per day (bpd) by 2020, from 520,000 bpd now, Petrobras chief executive officer Jose Sergio Gabrielli said on Tuesday.
He said crude exports to the United States and China will double to 400,000-450,000 bpd by 2020.
S.Korea Oct crude imports up 8.3 pct y/y -prelim data
SEOUL, Nov 1 (Reuters) - South Korea's crude oil imports in October rose 8.3 percent from a year earlier, tentative customs figures released by the economy ministry on Tuesday showed.
Final import figures will be available later in the month from state-run Korea National Oil Corp (KNOC). The country's crude imports in September rose 7.5 percent from a year earlier thanks to bullish regional demand for oil products.
Asia to reap rewards of Brazil's crude export boost
SINGAPORE, Nov 1 (Reuters) - Asian refiners look set to be big winners as Brazil boosts sweet crude production from its bountiful deepwater pre-salt region in the second half of the decade.
Exports from Brazil, home to four of the world's largest oil finds in the past 10 years, will have to look for buyers in fast-growing Asia as the United States will use more of its own shale oil output towards the end of the decade, pushing West African imports back to Europe.
IEA not looking at another oil stocks release
SINGAPORE, Nov 1 (Reuters) - The International Energy Agency is not looking at another release of emergency oil stocks as the global supply situation has changed from that prevailing when inventories were released earlier this year, Richard Jones, deputy director of the agency, said.
The release decision was taken with the supply situation in mind, and not oil prices, Jones said. The supply outlook is set to change with Libyan fields coming back on line and Iraq raising production.
Top Gold Forecasters See Bullion Rallying to Record by March: Commodities (Source: Bloomberg)
The most accurate forecasters say gold will rebound from its biggest monthly plunge since 2008 and reach a record by March because economic growth is stagnating and Europe’s debt crisis is unresolved. Futures traded in New York may rise 14 percent to $1,950 an ounce by the end of the first quarter, according to the median of estimates compiled by Bloomberg. The predictions are from eight of the top 10 analysts tracked by Bloomberg over the past eight quarters. Two declined to give forecasts. Holdings in exchange-traded products backed by bullion rose the most in three months in October, and the most-widely held option gives owners the right to buy gold at $2,000 by Nov. 22. Demand for the metal accelerated since May as slowing growth and mounting concern that European leaders will fail to contain the region’s debt crisis caused $7.5 trillion to be erased from the value of global equities.
Einhorn Bets Gold Mining Companies Will Beat Bullion (Source: Bloomberg)
Hedge-fund manager David Einhorn is betting that gold-mining companies will outperform bullion, reversing the trend from the past six months. “A substantial disconnect has developed between the price of gold and the mining companies,” Einhorn said today in a conference call discussing results at Greenlight Capital Re Ltd. (GLRE), the reinsurer where he is chairman. The reinsurer cut holdings of the commodity in the third quarter and moved funds into the Market Vectors Gold Miners ETF, Einhorn said. The exchange-traded fund lost 5.4 percent in the six months ended yesterday, while bullion gained 11 percent.
20111102 0946 Soy Oil & Palm Oil Related News.
Soybeans (Source: CME)
US soybean futures end lower for third consecutive day, falling on a host of negative influences. Pressure from external financial markets fueled the declines, with slower export demand, cautious end user buying and favorable weather conditions for South American crops keeping buyers sidelined, analysts say. Soybean prices slid to three week lows, as renewed concerns about the European debt crisis sparked worry of slower global demand, analysts add. Soy traders were focused on macroeconomic factors in the absence of fresh demand news to underpin prices. CBOT Jan soy ended down 14 3/4c at $12.02 1/2/bushel.
Soybean Meal/Oil (Source: CME)
Soy product futures end lower in unison with soybean futures. Prices were driven lower by broad investor selling across asset classes in the absence of market specific news to buoy prices, analysts say. CBOT Dec soymeal ended down $1.40 at $316.10/short ton, and Dec soyoil was ended down 0.60c at 51.17 cents/pound.
New weather fears support palm oil futures
KUALA LUMPUR, Nov 1 (Reuters) - Malaysian palm oil futures edged up on concerns that heavy rains at the end of the year could stall harvesting and inundate estates just as export demand remains robust.
"Better exports and concerns that the weather will affect palm oil production are giving some support to the futures market," said a trader with a foreign commodities brokerage.
China weekly soy crushing at high level -CNGOIC
BEIJING, Nov 1 (Reuters) - Chinese crushers processed 1.3 million tonnes of soybean into soymeal and soyoil last week, with crushers running at a higher capacity in the coastal areas due to improved crushing margins, the China National Grain and Oils Information Centre (CNGOIC) said on Tuesday.
The centre expected the country's soy imports in November would hit 5.2 million tonnes, in line with its earlier estimate, but higher than 4.13 million tonnes in September, and 4.8 million tonnes for October estimated by the commerce ministry.
Brazil soy planting to accelerate as skies clear
SAO PAULO, Oct 31 (Reuters) - The planting of Brazil's soybean crop is already well ahead of schedule due to strong October rains, and drier weather over the next two weeks will likely speed up field work.
Grain analysts Celeres said on Monday that planting of the forecast record 75.2 million tonne crop has covered 35 percent of the expected area, ahead of the 25 percent planted last year and over the past five years on average at this time.
US soybean futures end lower for third consecutive day, falling on a host of negative influences. Pressure from external financial markets fueled the declines, with slower export demand, cautious end user buying and favorable weather conditions for South American crops keeping buyers sidelined, analysts say. Soybean prices slid to three week lows, as renewed concerns about the European debt crisis sparked worry of slower global demand, analysts add. Soy traders were focused on macroeconomic factors in the absence of fresh demand news to underpin prices. CBOT Jan soy ended down 14 3/4c at $12.02 1/2/bushel.
Soybean Meal/Oil (Source: CME)
Soy product futures end lower in unison with soybean futures. Prices were driven lower by broad investor selling across asset classes in the absence of market specific news to buoy prices, analysts say. CBOT Dec soymeal ended down $1.40 at $316.10/short ton, and Dec soyoil was ended down 0.60c at 51.17 cents/pound.
New weather fears support palm oil futures
KUALA LUMPUR, Nov 1 (Reuters) - Malaysian palm oil futures edged up on concerns that heavy rains at the end of the year could stall harvesting and inundate estates just as export demand remains robust.
"Better exports and concerns that the weather will affect palm oil production are giving some support to the futures market," said a trader with a foreign commodities brokerage.
China weekly soy crushing at high level -CNGOIC
BEIJING, Nov 1 (Reuters) - Chinese crushers processed 1.3 million tonnes of soybean into soymeal and soyoil last week, with crushers running at a higher capacity in the coastal areas due to improved crushing margins, the China National Grain and Oils Information Centre (CNGOIC) said on Tuesday.
The centre expected the country's soy imports in November would hit 5.2 million tonnes, in line with its earlier estimate, but higher than 4.13 million tonnes in September, and 4.8 million tonnes for October estimated by the commerce ministry.
Brazil soy planting to accelerate as skies clear
SAO PAULO, Oct 31 (Reuters) - The planting of Brazil's soybean crop is already well ahead of schedule due to strong October rains, and drier weather over the next two weeks will likely speed up field work.
Grain analysts Celeres said on Monday that planting of the forecast record 75.2 million tonne crop has covered 35 percent of the expected area, ahead of the 25 percent planted last year and over the past five years on average at this time.
Subscribe to:
Posts (Atom)