Malaysia: FTA with Australia possible by mid-2011
The free trade agreement (FTA) talks between Australia and Malaysia are likely to be concluded by mid-2011. The eighth round of FTA talks between Australian and Malaysian officials ended last Friday in Canberra. According to Australia Malaysia Business Council national president Larry Gould, both countries are likely to come to an agreement in the middle of next year. (StarBiz)
Japan: Bank of Japan to cut economic forecasts
The Bank of Japan was expected to trim its economic forecast and predict a very slow exit from deflation, signaling it is ready to ease policy further if the strong yen threatens to stunt growth. The central bank would also detail its JPY5trn (USD61.46bn) asset buying programme announced early this month and might say that it would kick off before its next rate review in November, sources familiar with the BOJ’s thinking said. (StarBiz)
Australia: RBA records largest-ever valuation loss on currency
The Reserve Bank of Australia said it recorded a valuation loss of AUD3.8bn (USD3.7bn) in fiscal 2010, its largest ever, as the nation’s currency surged. The RBA said in its annual report released that underlying earnings in the 12 months ended 30 June were AUD866m, leaving a net loss of AUD2.9bn for the year, after an AUD8.8bn profit a year earlier. As a result, no dividend will be payable to the government for the year, it said. A 12% rise in the Australian dollar against other currencies held in its reserves meant that foreign interest earnings were worth less in local dollars, the report showed. Underlying earnings were AUD1.28bn less than the yearearlier period and were the lowest since 1983, the report showed. (Bloomberg)
UK: House prices fell to eight-month low in October
UK house prices fell in October to the lowest level in eight months as the deepest government spending cuts since World War II sapped confidence, a report by Nationwide Building Society showed. The average cost of a home dropped by 0.7% from September to GBP164,381(USD259,000), the lowest since February, Britain’s biggest customer-owned lender said. From a year earlier, prices increased 1.4%, the least since September 2009. (Bloomberg)
EU: Economic confidence improves more than forecast
European confidence in the economic outlook improved more than economists forecast to the highest in almost three years in October, led by manufacturing sentiment. An index of executive and consumer sentiment in the 16 euro nations rose to 104.1 from 103.2 in September, the European Commission in Brussels said. That’s the highest since December 2007 and exceeded economists’ forecast for a reading of 103.5, based on the median of 26 estimates in a Bloomberg News survey. (Bloomberg)
US: Jobless claims fall in sign US job market mending
Claims for jobless benefits unexpectedly dropped last week to a three-month low, a sign the US labor market may be starting to mend. Initial jobless claims decreased by 21,000 to 434,000 in the week ended 23 Oct, the lowest since early July when fewer auto plants than normal closed for retooling, Labor Department figures showed in Washington. The total number of people receiving unemployment insurance dropped to a two-year low, while those getting extended payments also fell. (Bloomberg)
US: Fed asks dealers to estimate size of debt purchases
The Federal Reserve asked bond dealers and investors for projections of central bank asset purchases over the next six months, along with the likely effect on yields, as it seeks to gauge the possible impact of new efforts to spur growth. The New York Fed survey, obtained by Bloomberg News, asks about expectations for the initial size of any new program of debt purchases and the time over which it would be completed. It also asks firms how often they anticipate the Fed will re- evaluate the program, and to estimate its ultimate size. (Bloomberg)
Friday, October 29, 2010
20101029 1318 Malaysia Corporate News.
Mortgage cap decision soon
Bank Negara Malaysia may make it harder for Malaysians to buy more than two houses as it seeks to stem speculative buying that is pushing up property prices. Sources said the central bank would be meeting with banks next week to discuss plans for a mortgage cap whereby loans would be limited to a portion of the property value. "The expectation is a cap of about 70%-80%. We think a directive will be issued to cap," said two sources with knowledge of the meeting. Earlier, Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz said it was prepared to take pre-emptive action and that it has wide-ranging instruments to prevent a property bubble. "We want to promote house ownership, but we want it to be done in an orderly manner and we don't want speculative activities," she told reporters on the sidelines of the Global Islamic Finance Forum in Kuala Lumpur yesterday. (BT)
MAHB signs joint deal on Maldives airport
Malaysia Airports Holdings (MAHB) yesterday signed a joint-venture agreement with GMR Infrastructure Ltd and GMR Male International Airport Ltd (GMIAL) for the rehabilitation, expansion, modernization, operation and maintenance of Male International Airport, Maldives. MAHB told Bursa Malaysia yesterday that it was based on a build-operate-transfer model. The tenure of the concession is 25 years starting from the handover date and may be extended by another 10 years subject to mutual terms and conditions between the relevant parties. Based on the expected construction cost of USD373m, the cost attributable to MAHB (by way of equity contribution and/or contingent liabilities for shareholder’s support and/or corporate guarantees, if required) is about USD86m. MAHB and GMR Infrastructure will subscribe for shares in GMIAL based on the shareholding percentages of 23% and 77%, respectively. (StarBiz)
Bursa unfazed by SGX-ASX merger
Bursa Malaysia does not expect the proposed merger between the Singapore Stock Exchange (SGX) and Australian Stock Exchange (ASX) to affect the local bourse's performance and competitiveness. Chief executive officer Datuk Yusli Mohamed Yusoff said this is due to Bursa Malaysia's unique features, competitive products and new offerings. Yusli did not elaborate on the unique features. He spoke to reporters after delivering a keynote address at the final day of the Global Islamic Finance Forum in Kuala Lumpur yesterday. "We will make sure the products and services we offer are of interest to both foreign and local investors," he said, noting more products will be introduced. (BT)
Southern Acids to unlock value of land in Kota Kemuning
Southern Acids (M) (SAB) is set to unlock its holding of 644.49 acres of land bordering Kota Kemuning, Shah Alam, although its board of directors is still exploring its options. “There are plans to unlock the value but the board has not decided what to do. Nothing is finalized yet,” said SAB chairman Tan Sri Low Boon yesterday. Low said while there is “no shortage of suitors” for the land known as Thangamallay Estate, which is home to its palm oil plantation, he stressed that the board is evaluating all available options before making any decision in the next three to six months. (Financial Daily)
Loh & Loh to be delisted
Javace SB, which has made a mandatory take-over offer to acquire all shares in Loh & Loh Corp, has received valid acceptances resulting in it and the parties acting in concert holding 65.84m shares in Loh & Loh. This represents 96.82% of the issued and paid-up capital of the company, Loh & Loh told Bursa Malaysia yesterday. The offerors do not intend to maintain the listing status of Loh & Loh in the event it holds 90% or more of the issued and paid-up share capital. Hence the shares of the company will be suspended from trading on 8 Nov, and its listing status will be withdrawn from the official list of Bursa Malaysia.(StarBiz)
Petronas to expand Malacca refinery
Petroliam Nasional (Petronas) plans to expand and upgrade its Malacca refinery to produce higher-quality fuel and meet rising demand after recently raising the plant’s capacity to 290,000 barrels per day (bpd), industry sources said. Upgrades would allow Petronas to process more sour crude at the refining complex as the country’s sweet crude production declined, one of the sources said. The study, which would determine the capacity and investment costs, was expected to be completed in first-quarter next year, he said. The expansion would be carried out at the refinery’s Train 1, which has a design capacity of 100,000 bpd but operates at 120,000 bpd, the source said. (StarBiz)
Bank Negara Malaysia may make it harder for Malaysians to buy more than two houses as it seeks to stem speculative buying that is pushing up property prices. Sources said the central bank would be meeting with banks next week to discuss plans for a mortgage cap whereby loans would be limited to a portion of the property value. "The expectation is a cap of about 70%-80%. We think a directive will be issued to cap," said two sources with knowledge of the meeting. Earlier, Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz said it was prepared to take pre-emptive action and that it has wide-ranging instruments to prevent a property bubble. "We want to promote house ownership, but we want it to be done in an orderly manner and we don't want speculative activities," she told reporters on the sidelines of the Global Islamic Finance Forum in Kuala Lumpur yesterday. (BT)
MAHB signs joint deal on Maldives airport
Malaysia Airports Holdings (MAHB) yesterday signed a joint-venture agreement with GMR Infrastructure Ltd and GMR Male International Airport Ltd (GMIAL) for the rehabilitation, expansion, modernization, operation and maintenance of Male International Airport, Maldives. MAHB told Bursa Malaysia yesterday that it was based on a build-operate-transfer model. The tenure of the concession is 25 years starting from the handover date and may be extended by another 10 years subject to mutual terms and conditions between the relevant parties. Based on the expected construction cost of USD373m, the cost attributable to MAHB (by way of equity contribution and/or contingent liabilities for shareholder’s support and/or corporate guarantees, if required) is about USD86m. MAHB and GMR Infrastructure will subscribe for shares in GMIAL based on the shareholding percentages of 23% and 77%, respectively. (StarBiz)
Bursa unfazed by SGX-ASX merger
Bursa Malaysia does not expect the proposed merger between the Singapore Stock Exchange (SGX) and Australian Stock Exchange (ASX) to affect the local bourse's performance and competitiveness. Chief executive officer Datuk Yusli Mohamed Yusoff said this is due to Bursa Malaysia's unique features, competitive products and new offerings. Yusli did not elaborate on the unique features. He spoke to reporters after delivering a keynote address at the final day of the Global Islamic Finance Forum in Kuala Lumpur yesterday. "We will make sure the products and services we offer are of interest to both foreign and local investors," he said, noting more products will be introduced. (BT)
Southern Acids to unlock value of land in Kota Kemuning
Southern Acids (M) (SAB) is set to unlock its holding of 644.49 acres of land bordering Kota Kemuning, Shah Alam, although its board of directors is still exploring its options. “There are plans to unlock the value but the board has not decided what to do. Nothing is finalized yet,” said SAB chairman Tan Sri Low Boon yesterday. Low said while there is “no shortage of suitors” for the land known as Thangamallay Estate, which is home to its palm oil plantation, he stressed that the board is evaluating all available options before making any decision in the next three to six months. (Financial Daily)
Loh & Loh to be delisted
Javace SB, which has made a mandatory take-over offer to acquire all shares in Loh & Loh Corp, has received valid acceptances resulting in it and the parties acting in concert holding 65.84m shares in Loh & Loh. This represents 96.82% of the issued and paid-up capital of the company, Loh & Loh told Bursa Malaysia yesterday. The offerors do not intend to maintain the listing status of Loh & Loh in the event it holds 90% or more of the issued and paid-up share capital. Hence the shares of the company will be suspended from trading on 8 Nov, and its listing status will be withdrawn from the official list of Bursa Malaysia.(StarBiz)
Petronas to expand Malacca refinery
Petroliam Nasional (Petronas) plans to expand and upgrade its Malacca refinery to produce higher-quality fuel and meet rising demand after recently raising the plant’s capacity to 290,000 barrels per day (bpd), industry sources said. Upgrades would allow Petronas to process more sour crude at the refining complex as the country’s sweet crude production declined, one of the sources said. The study, which would determine the capacity and investment costs, was expected to be completed in first-quarter next year, he said. The expansion would be carried out at the refinery’s Train 1, which has a design capacity of 100,000 bpd but operates at 120,000 bpd, the source said. (StarBiz)
20101029 1310 Global Market News.
Exxon, Shell profits bubble higher with oil prices
LONDON/HOUSTON, Oct 28 (Reuters) - The world's biggest oil companies, Exxon Mobil and Royal Dutch Shell , reported sharply higher third-quarter profits on Thursday, beating analysts' forecasts, as rising energy demand drove up oil and gas prices and fattened refinery margins.
Oil prices climbed 12 percent in the quarter from a year earlier on the back of the global economic recovery and strong demand from China, which became the world's largest energy user this year.
COMMODITY MARKETS: Most markets up modestly as dollar tumbles
NEW YORK, Oct 28 (Reuters) - Commodities rose on Thursday on better-than-expected U.S. job indicators but gains in oil and most raw materials did not match the sharp drop in the dollar due to uncertainties about factors ranging from Fed easing to the outcome of U.S. Congressional elections.
"Are we seeing the inverse relationship between the dollar and commodities beginning to fray somewhat? For sure," said Adam Sarhan, founder of New York's Sarhan Capital, which oversees about $100 million in client assets.
GLOBAL MARKETS: Stocks mixed, dollar falls before elections, Fed
NEW YORK, Oct 28 (Reuters) - Global stocks rose despite Wall Street's mixed finish and the dollar's slide on Thursday as investors pulled back before expected upheaval from next week's U.S. elections and the likelihood of more monetary easing.
"Perhaps this is going to be a 'buy the rumor, sell the news' kind of deal where we have had the rally in anticipation of all these things," said Phil Orlando, chief equity market strategist, at Federated Investors in New York.
OIL: Crude falls before U.S. economic growth data
SINGAPORE, Oct 29 (Reuters) - Oil fell to below $82 ahead of U.S. third-quarter GDP data due later on Friday, the last major economic cue for markets before the Federal Reserve outlines steps to boost recovery in a meeting next week.
The United States is expected to show a 2 percent increase in third-quarter GDP growth, up from 1.7 percent in the second, due to higher consumer spending, a Reuters poll showed.
PRECIOUS-Gold recovers as dollar weakens ahead of Fed meet
LONDON, Oct 28 (Reuters) - Gold rose back towards $1,330 an ounce in Europe on Thursday as fresh dollar weakness arrested the previous session's decline, but trading was cautious ahead of Federal Reserve talks on monetary easing next week.
"Our colleagues on the FX side think the numbers that are circling in the market on QE measures are far too high, we expect some lower numbers, and that will probably help the dollar," said Commerzbank analyst Daniel Briesemann. "That could weigh on precious metals prices."
FOREX-Dollar slides, short-covering rally sputters
LONDON, Oct 28 (Reuters) - The dollar slipped on Thursday, relinquishing some of the gains made earlier this week as a short-covering rally ran out of steam and U.S. Treasury yields fell.
"We'd seen a short squeeze in the dollar in the past few days due to exhaustion in positioning, but when there's no incentive to maintain that, you get some profit taking," said Peter Frank, currency strategist at Societe Generale.
U.S. wheat rises for 5th session on weather concerns
SINGAPORE, Oct 28 (Reuters) - Chicago wheat futures ticked higher, rising for the fifth straight session, as concerns over bad weather in the United States and Australia continued to support the market.
"In the last few days, the market has drawn support from relatively weak U.S. crop conditions," said Luke Mathews, commodity strategist at Commonwealth Bank of Australia.
Asian stocks rebound; yen unmoved by BOJ
SYDNEY, Oct 28 (Reuters) - Asian stocks rebounded after having suffered their biggest one-day fall in four months, while the yen held firm against a broadly weaker dollar, taking details of the Bank of Japan's stimulus plan in its stride.
"What stands out is that the BOJ rescheduled its next meeting, bringing it forward, which suggests the central bank wants to make sure it can take action if needed after the FOMC," said Takeshi Minami, chief economist at Norinchukin Research Institute, referring to the U.S. central bank meeting on Nov. 2-3.
LONDON/HOUSTON, Oct 28 (Reuters) - The world's biggest oil companies, Exxon Mobil and Royal Dutch Shell , reported sharply higher third-quarter profits on Thursday, beating analysts' forecasts, as rising energy demand drove up oil and gas prices and fattened refinery margins.
Oil prices climbed 12 percent in the quarter from a year earlier on the back of the global economic recovery and strong demand from China, which became the world's largest energy user this year.
COMMODITY MARKETS: Most markets up modestly as dollar tumbles
NEW YORK, Oct 28 (Reuters) - Commodities rose on Thursday on better-than-expected U.S. job indicators but gains in oil and most raw materials did not match the sharp drop in the dollar due to uncertainties about factors ranging from Fed easing to the outcome of U.S. Congressional elections.
"Are we seeing the inverse relationship between the dollar and commodities beginning to fray somewhat? For sure," said Adam Sarhan, founder of New York's Sarhan Capital, which oversees about $100 million in client assets.
GLOBAL MARKETS: Stocks mixed, dollar falls before elections, Fed
NEW YORK, Oct 28 (Reuters) - Global stocks rose despite Wall Street's mixed finish and the dollar's slide on Thursday as investors pulled back before expected upheaval from next week's U.S. elections and the likelihood of more monetary easing.
"Perhaps this is going to be a 'buy the rumor, sell the news' kind of deal where we have had the rally in anticipation of all these things," said Phil Orlando, chief equity market strategist, at Federated Investors in New York.
OIL: Crude falls before U.S. economic growth data
SINGAPORE, Oct 29 (Reuters) - Oil fell to below $82 ahead of U.S. third-quarter GDP data due later on Friday, the last major economic cue for markets before the Federal Reserve outlines steps to boost recovery in a meeting next week.
The United States is expected to show a 2 percent increase in third-quarter GDP growth, up from 1.7 percent in the second, due to higher consumer spending, a Reuters poll showed.
PRECIOUS-Gold recovers as dollar weakens ahead of Fed meet
LONDON, Oct 28 (Reuters) - Gold rose back towards $1,330 an ounce in Europe on Thursday as fresh dollar weakness arrested the previous session's decline, but trading was cautious ahead of Federal Reserve talks on monetary easing next week.
"Our colleagues on the FX side think the numbers that are circling in the market on QE measures are far too high, we expect some lower numbers, and that will probably help the dollar," said Commerzbank analyst Daniel Briesemann. "That could weigh on precious metals prices."
FOREX-Dollar slides, short-covering rally sputters
LONDON, Oct 28 (Reuters) - The dollar slipped on Thursday, relinquishing some of the gains made earlier this week as a short-covering rally ran out of steam and U.S. Treasury yields fell.
"We'd seen a short squeeze in the dollar in the past few days due to exhaustion in positioning, but when there's no incentive to maintain that, you get some profit taking," said Peter Frank, currency strategist at Societe Generale.
U.S. wheat rises for 5th session on weather concerns
SINGAPORE, Oct 28 (Reuters) - Chicago wheat futures ticked higher, rising for the fifth straight session, as concerns over bad weather in the United States and Australia continued to support the market.
"In the last few days, the market has drawn support from relatively weak U.S. crop conditions," said Luke Mathews, commodity strategist at Commonwealth Bank of Australia.
Asian stocks rebound; yen unmoved by BOJ
SYDNEY, Oct 28 (Reuters) - Asian stocks rebounded after having suffered their biggest one-day fall in four months, while the yen held firm against a broadly weaker dollar, taking details of the Bank of Japan's stimulus plan in its stride.
"What stands out is that the BOJ rescheduled its next meeting, bringing it forward, which suggests the central bank wants to make sure it can take action if needed after the FOMC," said Takeshi Minami, chief economist at Norinchukin Research Institute, referring to the U.S. central bank meeting on Nov. 2-3.
20101029 1309 Soy Oil & Palm Oil Related News.
Soy product futures ended mostly higher, up in tandem with advances in soybeans. Soymeal was underpinned by solid domestic demand amid poultry and pork population numbers rising above last year's levels, analysts said. Soyoil futures rose, but larger than expected soyoil stocks reported in the Census Bureau's Sept soy crush report, a healthy soyoil yield and China turning back to Argentina for vegoil supplies limited advances, said Dan Basse, president AgResource Company in Chicago. Dec soyoil settled 0.10c or 0.1% higher at 49.70 cents a pound. Dec soymeal ended $0.40 or 0.1% higher at $336.30 a short ton. (Source: CME)
Fall In Corn Production Weighs On IGC Grain Outlook (Source: CME)
World grains markets are expected to tighten in the 2010-11 season as consumption outpaces supply for the first time in four years, the International Grain Council said. While the IGC said wheat production is expected to hit 644 million metric tons in 2010-11--leaving its previous estimate unchanged--worsening prospects for corn crops in the U.S. and China are expected to lower world production. While still a record crop, the IGC cut its estimates for 2010-11 world corn output to 814 million tons from a previous forecast of 824 million tons. Corn output from the world's largest producer, the U.S., is expected to total 323 million tons this season, said the IGC, cutting its previous forecast by 11 million tons. China is expected to produce 162 million tons this year, 3 million less than the IGC's September estimate. Declining prospects for the U.S. corn crop has triggered a jump in prices in recent weeks.
A sharp downgrade in government yield estimates caused a mid-month surge in futures, with CBOT March corn now trading at around $5.77 1/4 a bushel. Analysts remain bullish on the prospect for corn markets. "Despite the aggressive cut in U.S. corn yields in the last WASDE report, further declines in yield estimates are likely," said Sudakshina Unnikrishnan at Barclays Capital. Still, demand is expected to remain robust. The IGC increased its corn consumption forecast for by 3 million tons to 840 million tons, up 3% from 2009-10, and said it expects this season's ending stocks to fall to a four-year low of 125 million tons.
Palm oil rebounds on soy, weather
KUALA LUMPUR, Oct 27 (Reuters) - Malaysian palm oil futures rebounded, after two straight days of losses, drawing support from a firmer soy complex and weather concerns.
"October exports could be either plus or minus 2 percent because exports data for the first 25 days showed a 4 percent fall," said a trader in Kuala Lumpur. "It is very hard to predict."
China's soy buying spree to curb vegoil imports
KUALA LUMPUR, Oct 28 (Reuters) - China's soybean imports smash records every year but if the country keeps up last week's pace of buying, its processors will have more than enough to crush into cooking oil, reducing imports of edible oil.
The world's No. 1 food buyer may be rewriting its shopping list at a time when a weaker dollar makes bumper soy crops from the Americas cheaper than processed soyoil from Argentina as well as Malaysian and Indonesian palm oil.
Fall In Corn Production Weighs On IGC Grain Outlook (Source: CME)
World grains markets are expected to tighten in the 2010-11 season as consumption outpaces supply for the first time in four years, the International Grain Council said. While the IGC said wheat production is expected to hit 644 million metric tons in 2010-11--leaving its previous estimate unchanged--worsening prospects for corn crops in the U.S. and China are expected to lower world production. While still a record crop, the IGC cut its estimates for 2010-11 world corn output to 814 million tons from a previous forecast of 824 million tons. Corn output from the world's largest producer, the U.S., is expected to total 323 million tons this season, said the IGC, cutting its previous forecast by 11 million tons. China is expected to produce 162 million tons this year, 3 million less than the IGC's September estimate. Declining prospects for the U.S. corn crop has triggered a jump in prices in recent weeks.
A sharp downgrade in government yield estimates caused a mid-month surge in futures, with CBOT March corn now trading at around $5.77 1/4 a bushel. Analysts remain bullish on the prospect for corn markets. "Despite the aggressive cut in U.S. corn yields in the last WASDE report, further declines in yield estimates are likely," said Sudakshina Unnikrishnan at Barclays Capital. Still, demand is expected to remain robust. The IGC increased its corn consumption forecast for by 3 million tons to 840 million tons, up 3% from 2009-10, and said it expects this season's ending stocks to fall to a four-year low of 125 million tons.
Palm oil rebounds on soy, weather
KUALA LUMPUR, Oct 27 (Reuters) - Malaysian palm oil futures rebounded, after two straight days of losses, drawing support from a firmer soy complex and weather concerns.
"October exports could be either plus or minus 2 percent because exports data for the first 25 days showed a 4 percent fall," said a trader in Kuala Lumpur. "It is very hard to predict."
China's soy buying spree to curb vegoil imports
KUALA LUMPUR, Oct 28 (Reuters) - China's soybean imports smash records every year but if the country keeps up last week's pace of buying, its processors will have more than enough to crush into cooking oil, reducing imports of edible oil.
The world's No. 1 food buyer may be rewriting its shopping list at a time when a weaker dollar makes bumper soy crops from the Americas cheaper than processed soyoil from Argentina as well as Malaysian and Indonesian palm oil.
Thursday, October 28, 2010
20101028 1818 FCPO EOD Daily Chart Study.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakening, buyer taking profit.
Support : 3070, 3050, 3020 level.
Resistant : 3100, 3150, 3200 level.
Comment :
Break new high FCPO recorded gained today recovered all last 2 days losses with improving volume changed hand due weaker US Dollar and a resume higher soy oil futures price. Daily chart formed a up bar candle within narrowing Bollinger band width with the reading remained suggesting a correction range bound upside biased market testing support and resistant level.
When to buy : buy at support and weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20101028 1732 FKLI EOD Daily Chart Study.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : recovering, buyer has no intention to leave.
Support : 1500, 1485, 1470 level.
Resistant : 1530, 1550, 1580 level.
Comment :
FKLI finally managed to close above 1500 crucial resistant level recorded marginal gain with lesser volume traded. Daily chart formed the fourth doji bar candle traded within the narrowing Bollinger band indicates that market still in consolidation phase and likely stay range bound upside biased.
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.
20101028 0942 Local & Global Economics News.
Malaysia: To sign FTA with India
An India-Malaysia free trade deal is expected to almost double trade by 2015, allowing them to reduce dependence on traditional growth engines such as China and US. The trade agreement will be signed by 31 Jan 2011 and come into force by 1 July. The two countries said they would work together to develop the hydrocarbons and renewable energy industries and collaborate in banking and information technology. (Financial Daily)
Australia: Less-than-forecast inflation is RBA ‘vindication’
Australian consumer prices rose less than forecast last quarter, driving down the nation’s currency as traders unwound bets the central bank will raise interest rates next week. The consumer price index rose 0.7% from the second quarter, the Bureau of Statistics said. That was less than the 0.8% median estimate in a Bloomberg News survey of 24 economists. The central bank’s measures of core inflation showed annual price increases slowed last quarter. (Bloomberg)
Germany: Inflation held steady in October after Euro appreciated
German inflation held steady in October as a stronger euro helped counter higher energy prices. The inflation rate, calculated using a harmonized European method, stayed at 1.3%, the Federal Statistics Office in Wiesbaden said. That was in line with the median of 21 estimates in a Bloomberg News survey of economists. In the month, prices rose 0.1%. (Bloomberg)
US: Sales of US new homes increase for second month
Sales of new homes rose in September for a second month to a pace that signals the industry is struggling to overcome the effects of a jobless rate hovering near 10%. Purchases increased 6.6% to a 307,000 annual rate that exceeded the median forecast of economists surveyed by Bloomberg News, figures from the Commerce Department showed in Washington. Demand is hovering near the record-low 282,000 reached in May. (Bloomberg)
US: Orders for US durable goods probably climbed, boosting growth
Orders for US durable goods probably climbed in September by the most in five months, a sign business investment is underpinning the recovery, economists said. Bookings for goods meant to last at least three years increased 2%, according to the median forecast of 76 economists surveyed by Bloomberg News. Another report may show sales of new houses rose last month to a 300,000 annual rate, hovering near a record low. (Bloomberg)
An India-Malaysia free trade deal is expected to almost double trade by 2015, allowing them to reduce dependence on traditional growth engines such as China and US. The trade agreement will be signed by 31 Jan 2011 and come into force by 1 July. The two countries said they would work together to develop the hydrocarbons and renewable energy industries and collaborate in banking and information technology. (Financial Daily)
Australia: Less-than-forecast inflation is RBA ‘vindication’
Australian consumer prices rose less than forecast last quarter, driving down the nation’s currency as traders unwound bets the central bank will raise interest rates next week. The consumer price index rose 0.7% from the second quarter, the Bureau of Statistics said. That was less than the 0.8% median estimate in a Bloomberg News survey of 24 economists. The central bank’s measures of core inflation showed annual price increases slowed last quarter. (Bloomberg)
Germany: Inflation held steady in October after Euro appreciated
German inflation held steady in October as a stronger euro helped counter higher energy prices. The inflation rate, calculated using a harmonized European method, stayed at 1.3%, the Federal Statistics Office in Wiesbaden said. That was in line with the median of 21 estimates in a Bloomberg News survey of economists. In the month, prices rose 0.1%. (Bloomberg)
US: Sales of US new homes increase for second month
Sales of new homes rose in September for a second month to a pace that signals the industry is struggling to overcome the effects of a jobless rate hovering near 10%. Purchases increased 6.6% to a 307,000 annual rate that exceeded the median forecast of economists surveyed by Bloomberg News, figures from the Commerce Department showed in Washington. Demand is hovering near the record-low 282,000 reached in May. (Bloomberg)
US: Orders for US durable goods probably climbed, boosting growth
Orders for US durable goods probably climbed in September by the most in five months, a sign business investment is underpinning the recovery, economists said. Bookings for goods meant to last at least three years increased 2%, according to the median forecast of 76 economists surveyed by Bloomberg News. Another report may show sales of new houses rose last month to a 300,000 annual rate, hovering near a record low. (Bloomberg)
20101028 0940 Malaysia Corporate News.
India PM urges Malaysian firms to tap USD1trn infra market
India PM Dr Manmohan Singh is encouraging Malaysian companies to participate in the potential infrastructure investment of about USD1tn under India's 12th Five Year Plan starting 2012. Its 11th Five Year Plan that ends next year has targeted investment in infrastructure of USD500bn but the sum was anticipated to double as inadequate infrastructure was a major constraint to India's performance. (BT)
More investments from India on the way
In line with India PM Dr Manmohan Singh’s visit to Malaysia, a few key investments from Indian companies have been announced. These include Biocon Ltd’s RM500m investment for a biomanufacturing, research and development facility in Iskandar Malaysia due to start operating by 2014 and Manipal Education’s RM650m investment over a 5-year period to build an international university in the vicinity of KL. (BT, Bernama)
Presentations made on KL-Singapore high speed train project
Several companies made presentations to the NKEA about three months ago on the Kuala Lumpur-Singapore high-speed train project, industry sources say. Among them were YTL Corp and Hartasuma SB, which was said to be partnering a Chinese state-owned firm. Some of the companies have proposed to undertake the highspeed rail project for between RM8bn and RM14bn. A Government source said the project could be worth RM10bn to RM12bn, and that it would take five to eight years to complete as it will cover 300km. (BT)
EPF-UEM offer leaves major PLUS investor cold
A major shareholder of PLUS Expressways is "not happy" with the EPF-UEM Group's takeover price for the firm, and may consider other bids, two sources say. KWAP, the civil servants' pension fund which owns a 5.2% stake in PLUS, believes that PLUS deserves a better price, said the sources, who have direct knowledge of the matter. (Reuters)
MK Land clinches RM4bn project in Bangalore
MK Land sealed an agreement with Embassy Group of India to develop a RM4bn “affordable homes” project in North Bangalore, India. The development will comprise 14,400 residential units with 2m square feet of commercial space. It will be carried out by MK Embassy Land, which is a joint venture between MK Land (47.5%), Embassy Group’s subsidiary Star Dreams Pte Ltd (47.5%), and Emkay Group’s subsidiary, MKN Embassy Development (5%). (Financial Daily)
Naim gets RM168m job in Sarawak
Naim Holdings’ wholly owned subsidiary NCSB Engineering SB has been awarded a RM168m contract by Jabatan Kerja Raya, Kuching. The contract is for the design and construction of the Bengoh Resettlement Scheme. (Financial Daily)
Exciting times ahead for Dialog
Dialog Group is gearing up for exciting times ahead with the multi-billion-ringgit independent deepwater petroleum terminal project at Pengerang, Johor, which will turn it into a regional oil storage and trading hub by 2017. “There are tremendous spinoff opportunities from the Pengerang project and it may eventually attract total combined investments of up to another RM95bn from other companies and O&G industries,” MD Ngau Bonn Keat said. (Financial Daily)
Tanjung Offshore gets RM22m vessel contract
Tanjung Offshore has received a RM22m contract from Carigali-PTTEPI Operating Company SB to supply a tug and utility vessel. The contract was for a primary duration of three years. The vessel would be used to support the offshore operations in block B-17 in the Malaysia-Thailand Joint Authority development area. (Financial Daily)
India PM Dr Manmohan Singh is encouraging Malaysian companies to participate in the potential infrastructure investment of about USD1tn under India's 12th Five Year Plan starting 2012. Its 11th Five Year Plan that ends next year has targeted investment in infrastructure of USD500bn but the sum was anticipated to double as inadequate infrastructure was a major constraint to India's performance. (BT)
More investments from India on the way
In line with India PM Dr Manmohan Singh’s visit to Malaysia, a few key investments from Indian companies have been announced. These include Biocon Ltd’s RM500m investment for a biomanufacturing, research and development facility in Iskandar Malaysia due to start operating by 2014 and Manipal Education’s RM650m investment over a 5-year period to build an international university in the vicinity of KL. (BT, Bernama)
Presentations made on KL-Singapore high speed train project
Several companies made presentations to the NKEA about three months ago on the Kuala Lumpur-Singapore high-speed train project, industry sources say. Among them were YTL Corp and Hartasuma SB, which was said to be partnering a Chinese state-owned firm. Some of the companies have proposed to undertake the highspeed rail project for between RM8bn and RM14bn. A Government source said the project could be worth RM10bn to RM12bn, and that it would take five to eight years to complete as it will cover 300km. (BT)
EPF-UEM offer leaves major PLUS investor cold
A major shareholder of PLUS Expressways is "not happy" with the EPF-UEM Group's takeover price for the firm, and may consider other bids, two sources say. KWAP, the civil servants' pension fund which owns a 5.2% stake in PLUS, believes that PLUS deserves a better price, said the sources, who have direct knowledge of the matter. (Reuters)
MK Land clinches RM4bn project in Bangalore
MK Land sealed an agreement with Embassy Group of India to develop a RM4bn “affordable homes” project in North Bangalore, India. The development will comprise 14,400 residential units with 2m square feet of commercial space. It will be carried out by MK Embassy Land, which is a joint venture between MK Land (47.5%), Embassy Group’s subsidiary Star Dreams Pte Ltd (47.5%), and Emkay Group’s subsidiary, MKN Embassy Development (5%). (Financial Daily)
Naim gets RM168m job in Sarawak
Naim Holdings’ wholly owned subsidiary NCSB Engineering SB has been awarded a RM168m contract by Jabatan Kerja Raya, Kuching. The contract is for the design and construction of the Bengoh Resettlement Scheme. (Financial Daily)
Exciting times ahead for Dialog
Dialog Group is gearing up for exciting times ahead with the multi-billion-ringgit independent deepwater petroleum terminal project at Pengerang, Johor, which will turn it into a regional oil storage and trading hub by 2017. “There are tremendous spinoff opportunities from the Pengerang project and it may eventually attract total combined investments of up to another RM95bn from other companies and O&G industries,” MD Ngau Bonn Keat said. (Financial Daily)
Tanjung Offshore gets RM22m vessel contract
Tanjung Offshore has received a RM22m contract from Carigali-PTTEPI Operating Company SB to supply a tug and utility vessel. The contract was for a primary duration of three years. The vessel would be used to support the offshore operations in block B-17 in the Malaysia-Thailand Joint Authority development area. (Financial Daily)
20101028 0911 Renewable Energy Related News.
Despite this is not related to FKLI or FCPO, the below news is just for sharing purpose as I think our country Malaysia possess a high potential in this industry.
CHINESE FIRM EYES NORWAY'S SOLAR FIRM ELKEM-SOURCES
HONG KONG, Oct 26 (Reuters)- China National BlueStar, a state-run specialty chemicals company backed by U.S. private equity firm Blackstone Group , is in talks to acquire part or all of Norwegian solar silicon product maker Elkem AS, according to three sources familiar with the matter.
An Elkem takeover could cost BlueStar around $1 billion based on the Norwegian company's financial figures and analysts notes.
INDIA AIMS TO ADD 35 GW CLEAN ENERGY BY 2015 - OFFICIAL
NEW DELHI, Oct 26 (Reuters) - India aims to add about 35 gigawatts of renewable power generation capacity by 2015, a top official said on Tuesday, at an investment of about $55 billion as the country seeks to cut a power deficit and carbon emissions.
Most of the investment has to come from private firms, said Debashish Majumdar, head of Indian Renewable Energy Development Agency. India's current generation from renewables is 16.5 GW.
U.S. APPROVES WORLD'S BIGGEST SOLAR POWER PROJECT
WASHINGTON, Oct 25 (Reuters) - The world's biggest solar plant that plans to provide power to more than 300,000 homes in southern California was approved by the U.S. Interior Department on Monday.
The $6 billion, 1,000-megawatt project, a joint venture of Solar Millennium AG and Ferrostaal AG, will be located on federal lands near Blythe, in the southern tip of California.
INTERVIEW-SOLAR SEEN KEY TO GULF'S RENEWABLES EFFORT
ABU DHABI, Oct 25 (Reuters) - Promoting solar energy in the Gulf, which has one of the world's biggest carbon footprints, will be a priority for the International Renewable Energy Agency (IRENA), its new interim director-general said.
Securing Saudi Arabia's participation in the intergovernmental organisation will also be a major target, IRENA's Adnan Amin told Reuters in an interview on Monday, adding that he hoped the world's largest crude oil exporter would become a signatory by next April.
SPAIN'S GAMESA SAYS TO BUILD OFFSHORE WIND FACTORY IN UK
LONDON, Oct 25 (Reuters) - Spain's Gamesa will open an offshore wind turbine factory and research centre in Britain, creating more than 1,000 direct jobs, the company said on Monday.
The company will invest 150 million euros until 2014 and base the global headquarters of its offshore division in London, Gamesa said, confirming a report from Reuters earlier this month.
S.AFRICA TO INVEST $115 BLN IN POWER -ZUMA
ERMELO, South Africa, Oct 23 (Reuters) - South Africa plans to spend more than 800 billion rand ($115 billion) on power generation infrastructure in the next few years to encourage more foreign investment, President Jacob Zuma said on Saturday.
"We are poised to spend more than 800 billion rand on infrastructure in the next few years," Zuma said at a ceremony to mark the recommissioning of national power utility Eskom's [ESCJ.UL] Camden power station.
INTERVIEW-KENYA HAS $400 MLN IN PLEDGES FOR GEOTHERMAL
NAIROBI, Oct 22 (Reuters) - Kenya's Geothermal Development Company (GDC) said on Friday it has pledges worth $400 million, 40 percent of the amount it needs for a 10-year plan during which it intends to produce 2,000 megawatts (MW) of steam.
"There is a lot of excitement in terms of the support that we are getting from outside," GDC Managing Director Silas Simiyu told Reuters. "When we came up with our business plan and we talked of 5,000 MW by 2030, it was thought that the plan was very ambitious."
INTERVIEW-LDK SOLAR SEES STRONG 2011 ORDER BOOK
SHANGHAI, Oct 21 (Reuters) - Solar wafer manufacturer LDK Solar has a strong order book for 2011 as global demand remains strong and is likely to revise up its full-year revenue target.
Chairman and chief executive Peng Xiaofeng, 35, one of the world's youngest billionaires, told Reuters in a telephone interview on Thursday that sales to China would reach 50 percent of its total in the next two years from 30 percent.
OFFSHORE WIND MKT SEEN DOUBLING IN 2010-CONSULTANT
COPENHAGEN, Oct 20 (Reuters) - The global offshore wind turbine market is expected to almost double this year after record growth last year and is seen expanding briskly to 2015, Denmark's MAKE Consulting said on Wednesday.
Last year the offshore turbine market grew by 80 percent from 2008, with 620 megawatts of capacity installed and the total installed base rising above 2 gigawatts, the wind energy specialist said in a preview of a new report.
ANALYSIS-INVESTORS LOOK BEYOND SOLAR MODULES
LOS ANGELES, Oct 20 (Reuters) - Rapid growth in the U.S. solar power industry and rising share prices of panel makers have shone a spotlight on consolidation in the sector, but deals are most likely for companies that build renewable power plants or make the panels more efficient.
Large established companies such as First Solar and SunPower Corp will be leading the charge, analysts say.
CHINESE FIRM EYES NORWAY'S SOLAR FIRM ELKEM-SOURCES
HONG KONG, Oct 26 (Reuters)- China National BlueStar, a state-run specialty chemicals company backed by U.S. private equity firm Blackstone Group , is in talks to acquire part or all of Norwegian solar silicon product maker Elkem AS, according to three sources familiar with the matter.
An Elkem takeover could cost BlueStar around $1 billion based on the Norwegian company's financial figures and analysts notes.
INDIA AIMS TO ADD 35 GW CLEAN ENERGY BY 2015 - OFFICIAL
NEW DELHI, Oct 26 (Reuters) - India aims to add about 35 gigawatts of renewable power generation capacity by 2015, a top official said on Tuesday, at an investment of about $55 billion as the country seeks to cut a power deficit and carbon emissions.
Most of the investment has to come from private firms, said Debashish Majumdar, head of Indian Renewable Energy Development Agency. India's current generation from renewables is 16.5 GW.
U.S. APPROVES WORLD'S BIGGEST SOLAR POWER PROJECT
WASHINGTON, Oct 25 (Reuters) - The world's biggest solar plant that plans to provide power to more than 300,000 homes in southern California was approved by the U.S. Interior Department on Monday.
The $6 billion, 1,000-megawatt project, a joint venture of Solar Millennium AG and Ferrostaal AG, will be located on federal lands near Blythe, in the southern tip of California.
INTERVIEW-SOLAR SEEN KEY TO GULF'S RENEWABLES EFFORT
ABU DHABI, Oct 25 (Reuters) - Promoting solar energy in the Gulf, which has one of the world's biggest carbon footprints, will be a priority for the International Renewable Energy Agency (IRENA), its new interim director-general said.
Securing Saudi Arabia's participation in the intergovernmental organisation will also be a major target, IRENA's Adnan Amin told Reuters in an interview on Monday, adding that he hoped the world's largest crude oil exporter would become a signatory by next April.
SPAIN'S GAMESA SAYS TO BUILD OFFSHORE WIND FACTORY IN UK
LONDON, Oct 25 (Reuters) - Spain's Gamesa will open an offshore wind turbine factory and research centre in Britain, creating more than 1,000 direct jobs, the company said on Monday.
The company will invest 150 million euros until 2014 and base the global headquarters of its offshore division in London, Gamesa said, confirming a report from Reuters earlier this month.
S.AFRICA TO INVEST $115 BLN IN POWER -ZUMA
ERMELO, South Africa, Oct 23 (Reuters) - South Africa plans to spend more than 800 billion rand ($115 billion) on power generation infrastructure in the next few years to encourage more foreign investment, President Jacob Zuma said on Saturday.
"We are poised to spend more than 800 billion rand on infrastructure in the next few years," Zuma said at a ceremony to mark the recommissioning of national power utility Eskom's [ESCJ.UL] Camden power station.
INTERVIEW-KENYA HAS $400 MLN IN PLEDGES FOR GEOTHERMAL
NAIROBI, Oct 22 (Reuters) - Kenya's Geothermal Development Company (GDC) said on Friday it has pledges worth $400 million, 40 percent of the amount it needs for a 10-year plan during which it intends to produce 2,000 megawatts (MW) of steam.
"There is a lot of excitement in terms of the support that we are getting from outside," GDC Managing Director Silas Simiyu told Reuters. "When we came up with our business plan and we talked of 5,000 MW by 2030, it was thought that the plan was very ambitious."
INTERVIEW-LDK SOLAR SEES STRONG 2011 ORDER BOOK
SHANGHAI, Oct 21 (Reuters) - Solar wafer manufacturer LDK Solar has a strong order book for 2011 as global demand remains strong and is likely to revise up its full-year revenue target.
Chairman and chief executive Peng Xiaofeng, 35, one of the world's youngest billionaires, told Reuters in a telephone interview on Thursday that sales to China would reach 50 percent of its total in the next two years from 30 percent.
OFFSHORE WIND MKT SEEN DOUBLING IN 2010-CONSULTANT
COPENHAGEN, Oct 20 (Reuters) - The global offshore wind turbine market is expected to almost double this year after record growth last year and is seen expanding briskly to 2015, Denmark's MAKE Consulting said on Wednesday.
Last year the offshore turbine market grew by 80 percent from 2008, with 620 megawatts of capacity installed and the total installed base rising above 2 gigawatts, the wind energy specialist said in a preview of a new report.
ANALYSIS-INVESTORS LOOK BEYOND SOLAR MODULES
LOS ANGELES, Oct 20 (Reuters) - Rapid growth in the U.S. solar power industry and rising share prices of panel makers have shone a spotlight on consolidation in the sector, but deals are most likely for companies that build renewable power plants or make the panels more efficient.
Large established companies such as First Solar and SunPower Corp will be leading the charge, analysts say.
20101028 0906 Biofuel Related News.
GERMANY TO RAISE BIOETHANOL BLENDING IN GASOLINE
HAMBURG, Oct 25 (Reuters) - The German cabinet will vote on Wednesday on a proposal to raise the maximum level of bioethanol allowed in blended gasoline to 10 percent in January 2011 from 5 percent now, the country's environment ministry said on Monday.
The move is part of Germany's efforts to meet European Union plans to raise biofuel use to protect the environment, it said.
PETROBRAS SIGNS $1.2 BLN ETHANOL DEAL WITH TEREOS
SAO PAULO, Oct 25 (Reuters) - Brazil's state-run oil giant Petrobras said on Monday it signed a 2.1 billion-real ($1.23 billion) agreement with Tereos International to secure the supply of ethanol.
The deal will bring Petrobras a step closer to reaching its goal of becoming a leading player in the global biofuels sector.
SPAIN TO UP BIOFUEL MIX IN FUELS TO 6.1 PCT BY 2013
MADRID, Oct 22 (Reuters) - Spain's industry ministry said on Friday it planned to increase the minimum proportions of biofuels to be mixed with conventional fuels to 6.1 percent in 2013 from 5.83 percent in 2010.
The increase in requirements to mix biofuels with conventional fuels -- known as minimum blend -- will take place gradually, reaching 5.9 percent in 2011, and 6.0 percent in 2012, the ministry said in a statement.
US OFFERS $1.5 BLN AID FOR BIOFUEL PRODUCTION
WASHINGTON, Oct 21 (Reuters) - The government is offering more than $1.5 billion in assistance, from field to filling station, to bring next-generation biofuels to market, Agriculture Secretary Tom Vilsack said on Thursday.
Vilsack said the aid would assure renewable fuel consumption reaches 36 billion gallons by 2022, with the bulk of it coming from non-food sources such as grass, algae or woody plants.
US TO SUBSIDIZE FARMERS TO GROW NEW BIOFUEL CROPS
WASHINGTON, Oct 20 (Reuters) - The U.S. government plans a half billion dollars in subsidies to help farmers grow the next generation of biomass crops -- switchgrass and woody plants instead of corn, farm lobbyists and congressional staff workers told Reuters.
Agriculture Secretary Tom Vilsack will announce the subsidy program on Thursday, they said. An estimated $525 million would be paid over 15 years to defray farmers' costs.
U.S. ETHANOL MAKERS SEEK RENEWAL OF TAX BREAKS
WASHINGTON, Oct 19 (Reuters) - Attacked as subsidy addicts, U.S. ethanol makers may need help from friends in high places, including the White House, to hold on to lucrative tax breaks set to expire at the end of the year.
The industry says it is ready to discuss revisions in the incentives, worth $6 billion a year. An amalgam of foodmakers, livestock producers, environmentalists and deficit hawks say there is no need for subsidies because biofuels are guaranteed by law a share of the motor fuel market.
BIOFUELS ONLY PARTLY TO BLAME FOR HIGH FOOD PRICES
CHICAGO, Oct 19 (Reuters) - Rising biofuel demand is among multiple factors fueling food inflation around the globe, but markets today are more able to manage that impact than in 2007, when an aggressive U.S. government mandate sent prices soaring, an agriculture industry executive said on Tuesday.
U.S. corn prices this month revisited levels not seen since the months after the amended Renewable Fuels Standard was signed into law, rekindling the debate about whether food products should be used to make fuel.
HAMBURG, Oct 25 (Reuters) - The German cabinet will vote on Wednesday on a proposal to raise the maximum level of bioethanol allowed in blended gasoline to 10 percent in January 2011 from 5 percent now, the country's environment ministry said on Monday.
The move is part of Germany's efforts to meet European Union plans to raise biofuel use to protect the environment, it said.
PETROBRAS SIGNS $1.2 BLN ETHANOL DEAL WITH TEREOS
SAO PAULO, Oct 25 (Reuters) - Brazil's state-run oil giant Petrobras said on Monday it signed a 2.1 billion-real ($1.23 billion) agreement with Tereos International to secure the supply of ethanol.
The deal will bring Petrobras a step closer to reaching its goal of becoming a leading player in the global biofuels sector.
SPAIN TO UP BIOFUEL MIX IN FUELS TO 6.1 PCT BY 2013
MADRID, Oct 22 (Reuters) - Spain's industry ministry said on Friday it planned to increase the minimum proportions of biofuels to be mixed with conventional fuels to 6.1 percent in 2013 from 5.83 percent in 2010.
The increase in requirements to mix biofuels with conventional fuels -- known as minimum blend -- will take place gradually, reaching 5.9 percent in 2011, and 6.0 percent in 2012, the ministry said in a statement.
US OFFERS $1.5 BLN AID FOR BIOFUEL PRODUCTION
WASHINGTON, Oct 21 (Reuters) - The government is offering more than $1.5 billion in assistance, from field to filling station, to bring next-generation biofuels to market, Agriculture Secretary Tom Vilsack said on Thursday.
Vilsack said the aid would assure renewable fuel consumption reaches 36 billion gallons by 2022, with the bulk of it coming from non-food sources such as grass, algae or woody plants.
US TO SUBSIDIZE FARMERS TO GROW NEW BIOFUEL CROPS
WASHINGTON, Oct 20 (Reuters) - The U.S. government plans a half billion dollars in subsidies to help farmers grow the next generation of biomass crops -- switchgrass and woody plants instead of corn, farm lobbyists and congressional staff workers told Reuters.
Agriculture Secretary Tom Vilsack will announce the subsidy program on Thursday, they said. An estimated $525 million would be paid over 15 years to defray farmers' costs.
U.S. ETHANOL MAKERS SEEK RENEWAL OF TAX BREAKS
WASHINGTON, Oct 19 (Reuters) - Attacked as subsidy addicts, U.S. ethanol makers may need help from friends in high places, including the White House, to hold on to lucrative tax breaks set to expire at the end of the year.
The industry says it is ready to discuss revisions in the incentives, worth $6 billion a year. An amalgam of foodmakers, livestock producers, environmentalists and deficit hawks say there is no need for subsidies because biofuels are guaranteed by law a share of the motor fuel market.
BIOFUELS ONLY PARTLY TO BLAME FOR HIGH FOOD PRICES
CHICAGO, Oct 19 (Reuters) - Rising biofuel demand is among multiple factors fueling food inflation around the globe, but markets today are more able to manage that impact than in 2007, when an aggressive U.S. government mandate sent prices soaring, an agriculture industry executive said on Tuesday.
U.S. corn prices this month revisited levels not seen since the months after the amended Renewable Fuels Standard was signed into law, rekindling the debate about whether food products should be used to make fuel.
20101028 0905 Global Market News.
Oil edges higher as dollar weakens, U.S. gasoline stocks drop
SINGAPORE, Oct 28 (Reuters) - Oil gained as the dollar weakened and U.S. gasoline stockpiles posted a surprise drop, while doubts lingered about the size of expected monetary stimulus by the Federal Reserve.
"I see the decline in gasoline stocks as quite positive for the oil market, especially because we don't usually see these drops this time of year," said Ben Westmore, a commodities analyst at National Australia Bank.
Gold inches higher as markets eye Fed move
SINGAPORE, Oct 28 (Reuters) - Gold prices inched higher, and the dollar edged lower, as investors reassessed expectations of the Federal Reserve's decision next week on monetary easing.
"Gold prices are likely to be rangebound in the short term, as investors wait for the Fed's decision next week. We've seen different opinions on what the Fed would do and how the dollar would move," said Zhu Yilin, general manager of the research and development department of Jingyi Futures in Shanghai.
OIL: Crude steady, capped by sagging U.S. demand
SINGAPORE, Oct 28 (Reuters) - Oil edged higher as the dollar weakened on Thursday, but gains were limited by government data showing U.S. demand receded last week, raising questions about how much expected monetary stimulus would lift consumption.
Total U.S. product demand fell 0.3 percent in the four weeks to Oct. 22 from a year earlier, the Energy InformationAdministration reported on Wednesday, with gasoline use down 0.8 percent in the period.
COMMODITY MARKETS: Ends down as dlr up on Fed stimulus rethink
NEW YORK, Oct 27 (Reuters) - Most commodities fell on Wednesday, hurt by a strong dollar and risk reduction by those fearing the U.S. Federal Reserve may be less aggressive than previously thought in efforts to stimulate the economy.
"Given the price action, we can assume they (investors) are trimming those short dollar bets," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange.
GLOBAL MARKETS: Dollar up; stocks, commodities down, eyes on Fed
NEW YORK, Oct 27 (Reuters) - The dollar rose while stocks and commodities fell on Wednesday on doubts over how aggressively the Federal Reserve is going to attempt to stimulate the flagging U.S. economy.
"The dollar's slide since September has been pricing in aggressive price action by the Fed to around $1 trillion," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange.
U.S. consumer confidence, home prices remain weak
NEW YORK, Oct 26 (Reuters) - Data on Tuesday underscored the fragility of the U.S. economic recovery, with consumer confidence rising but still weak and home prices falling again after gaining earlier in the year.
The reports reinforced the belief the U.S. Federal Reserve will embark on another round of monetary policy stimulus to support the economic recovery, possibly as soon as next week.
PRECIOUS-Gold eases as dollar firms, WSJ predicts gradual QE
LONDON, Oct 27 (Reuters) - Gold eased towards $1,330 an ounce in Europe on Wednesday as the dollar firmed versus the euro after a report said the Federal Reserve would likely adopt a gradual approach to further U.S. monetary easing.
"I think the Fed won't go as big on QE2 as people have been expecting, and i think the dollar (will) firm into year-end," said Simon Weeks, head of precious metals at the Bank of Nova Scotia. "It's just a question of time before we are lower."
FOREX-Dollar gains as short positions cut before Fed
LONDON, Oct 27 (Reuters) - The dollar rose broadly on Wednesday as signs the U.S. Federal Reserve would take a more gradualist approach than expected to new quantitative easing next week prompted players to liquidate some short dollar positions.
"There is a sense that the Fed might go for QE light, rather than a second round of shock and awe," said Michael Derks, currency strategist at FXPro.
Doubts on Fed lift dollar, hurt stocks
LONDON, Oct 27 (Reuters) - Doubts over how aggressively the U.S. Federal Reserve is going to stimulate a flagging recovery with another round of money-printing weighed on world equities and commodities while boosting the dollar.
"Underlying sentiment has clearly deteriorated ... the market is moving away from the expectation of a huge initial increase in QE to this rather incremental approach," said Nick Stamenkovic, rate strategist at RIA Capital Markets in Edinburgh.
SINGAPORE, Oct 28 (Reuters) - Oil gained as the dollar weakened and U.S. gasoline stockpiles posted a surprise drop, while doubts lingered about the size of expected monetary stimulus by the Federal Reserve.
"I see the decline in gasoline stocks as quite positive for the oil market, especially because we don't usually see these drops this time of year," said Ben Westmore, a commodities analyst at National Australia Bank.
Gold inches higher as markets eye Fed move
SINGAPORE, Oct 28 (Reuters) - Gold prices inched higher, and the dollar edged lower, as investors reassessed expectations of the Federal Reserve's decision next week on monetary easing.
"Gold prices are likely to be rangebound in the short term, as investors wait for the Fed's decision next week. We've seen different opinions on what the Fed would do and how the dollar would move," said Zhu Yilin, general manager of the research and development department of Jingyi Futures in Shanghai.
OIL: Crude steady, capped by sagging U.S. demand
SINGAPORE, Oct 28 (Reuters) - Oil edged higher as the dollar weakened on Thursday, but gains were limited by government data showing U.S. demand receded last week, raising questions about how much expected monetary stimulus would lift consumption.
Total U.S. product demand fell 0.3 percent in the four weeks to Oct. 22 from a year earlier, the Energy InformationAdministration reported on Wednesday, with gasoline use down 0.8 percent in the period.
COMMODITY MARKETS: Ends down as dlr up on Fed stimulus rethink
NEW YORK, Oct 27 (Reuters) - Most commodities fell on Wednesday, hurt by a strong dollar and risk reduction by those fearing the U.S. Federal Reserve may be less aggressive than previously thought in efforts to stimulate the economy.
"Given the price action, we can assume they (investors) are trimming those short dollar bets," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange.
GLOBAL MARKETS: Dollar up; stocks, commodities down, eyes on Fed
NEW YORK, Oct 27 (Reuters) - The dollar rose while stocks and commodities fell on Wednesday on doubts over how aggressively the Federal Reserve is going to attempt to stimulate the flagging U.S. economy.
"The dollar's slide since September has been pricing in aggressive price action by the Fed to around $1 trillion," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange.
U.S. consumer confidence, home prices remain weak
NEW YORK, Oct 26 (Reuters) - Data on Tuesday underscored the fragility of the U.S. economic recovery, with consumer confidence rising but still weak and home prices falling again after gaining earlier in the year.
The reports reinforced the belief the U.S. Federal Reserve will embark on another round of monetary policy stimulus to support the economic recovery, possibly as soon as next week.
PRECIOUS-Gold eases as dollar firms, WSJ predicts gradual QE
LONDON, Oct 27 (Reuters) - Gold eased towards $1,330 an ounce in Europe on Wednesday as the dollar firmed versus the euro after a report said the Federal Reserve would likely adopt a gradual approach to further U.S. monetary easing.
"I think the Fed won't go as big on QE2 as people have been expecting, and i think the dollar (will) firm into year-end," said Simon Weeks, head of precious metals at the Bank of Nova Scotia. "It's just a question of time before we are lower."
FOREX-Dollar gains as short positions cut before Fed
LONDON, Oct 27 (Reuters) - The dollar rose broadly on Wednesday as signs the U.S. Federal Reserve would take a more gradualist approach than expected to new quantitative easing next week prompted players to liquidate some short dollar positions.
"There is a sense that the Fed might go for QE light, rather than a second round of shock and awe," said Michael Derks, currency strategist at FXPro.
Doubts on Fed lift dollar, hurt stocks
LONDON, Oct 27 (Reuters) - Doubts over how aggressively the U.S. Federal Reserve is going to stimulate a flagging recovery with another round of money-printing weighed on world equities and commodities while boosting the dollar.
"Underlying sentiment has clearly deteriorated ... the market is moving away from the expectation of a huge initial increase in QE to this rather incremental approach," said Nick Stamenkovic, rate strategist at RIA Capital Markets in Edinburgh.
20101028 0902 Soy Oil & Palm Oil Related News.
Soy product futures ended higher, rising in unison with soybean futures. The markets managed to bounce back from initial setbacks, as strength in beans amid strong underlying export demand supported prices throughout the soy complex, analysts said. Dec soyoil settled 0.07c or 0.1% higher at 49.60 cents a pound. Dec soymeal ended $0.40 or 0.1% higher at $335.90 a short ton. (Source : CME)
Argentina Seen Setting New Crop Records - Official (Source : CME)
Argentina' farmers are on track to break the record grain output seen last season, with production topping 100 million tons, the country's Vice Minister of Agriculture, Lorenzo Basso, said in an interview. With soybean planting just kicking off, conditions are ideal after recent showers and prices are sky-high right now. Basso estimated that production would set a new record of 55 million metric tons this season. Virtually all of that will be exported as either beans, meal or oil, he said. Argentina is the world's third largest soybean exporter after the U.S. and Brazil. Argentina leads the world in soymeal and soyoil exports. Basso also said that China had resumed heavy soyoil buying after lifting a block on the trade earlier this month. The Chinese are likely to end the year with purchases similar to those in 2009, he added. China is the largest importer of soyoil and dealt Argentine exporters a stinging blow earlier this year when it blocked soyoil imports from Argentina, citing sanitary reasons.
However, the move was widely seen as retaliation for barriers imposed on Chinese goods by Argentina amid a host of anti-dumping investigations. Argentina, the world's third-largest corn exporter, is also set to smash last year's corn record, with between 26 million and 27 million tons grown, Basso said. That would be up sharply from the 22.5 million tons grown last year, according to the U.S. Department of Agriculture. About two-thirds of the corn crop has been planted to date and conditions are good after recent showers. Basso said that about 70% of the corn crop would likely be cleared for export after about 8 million tons are set aside for domestic consumption. Argentina tightly regulates corn and wheat exports, only granting export permits once it has confirmed sufficient stocks for local residents. While farmers worry that dry weather towards the end of the year due to the La Nina weather phenomenon may affect the crops, for now soil moisture levels are excellent across much of the farm belt.
That has boosted prospects for the developing wheat crop, with Basso estimating production of about 13 million tons. That's up a million tons from the Agriculture Ministry's current forecast. Of that crop, Argentina, one of the world's leading wheat exporters, will likely ship almost 7 million tons, with most going to Brazil. Basso estimated domestic consumption next year at 5.5 million to 6 million tons.
Rising Food Costs: Hot Potato In China (Source : CME)
China's hunger is pushing prices of food commodities sharply higher lately. Back home, this boom is becoming a source of worry. Over the next decade, China's annual grain demand is likely to reach 573 million tons, which is above its current production levels. Beijing may swiftly become more reliant than ever on global markets for a class of commodities it is desperate to keep mostly home-grown. Soybeans traded in Chicago are at the highest price in 14 months, largely because of the strength of Chinese demand. Palm oil on the Malaysia Derivatives Exchange breached a 27-month peak this week. Thai rice prices are nearing a six-month high. Inside China, this already has gone from just market play to a matter of public interest. In October, the price of staples such as cooking oil and sugar sold in China's supermarkets jumped 10% to 13%. News of food shortages -- in corn, wheat, garlic, mung beans and sugar -- have dominated local headlines this year.
Food is a political hot potato, and accounts for a third of the basket of goods used to calculate inflation. So far, the government has chosen to respond within markets. It has auctioned millions of tons in reserves of grain, cooking oil, sugar and cotton, and publicly threatened to punish "speculators." Last week, the central bank raised interest rates, in part to slow price gains. Nonetheless, the gains have been accelerating. True, the last reported inflation rate -- 3.6% in September -- was still well below the 12-year high of 8.7%, touched in early 2008, but food-price increase are back at those high rates. Back then, Beijing imposed price caps on grains, edible oils, meat, milk and eggs to bring inflation back to an even keel. It took a year and a global financial crisis before the caps were lifted. Certainly, that is bitter medicine, which limits efficiency and risks hurting product quality.
But with the world betting on a richer, hungrier giant, the government knows the danger of inflation -- and the difficult job of controlling it -- is back.
Palm extends losses on dollar; China soyoil off 2-yr top
KUALA LUMPUR, Oct 27 (Reuters) - Malaysian palm oil extended losses and China's soyoil market tumbled from two-year highs as a stronger dollar made commodities priced in the currency expensive and unattractive as an inflation hedge.
"Palm oil followed a correction of China's soyoil and profit taking on a stronger dollar," said a trader in Kuala Lumpur.
China buys more Argentina soyoil as price rises-CNGOIC
BEIJING, Oct 27 (Reuters) - Chinese companies booked about 250,000 tonnes of soyoil this week, mainly from Argentina, for March-to-May shipment after Beijing lifted a ban on imports from the world's largest exporter, an official think tank said.
Some of the shipments could come from Brazil as an alternative supplier, the China National Grain and Oils Information Centre (CNGOIC) said in a report on its website (www.grain.gov.cn) on Wednesday.
China soy crush output to top 95 mln T 2010/2011-CNGOIC
BEIJING, Oct 27 (Reuters) - China will add 11 million tonnes of new soy crush capacity in 2010/2011 (Oct/Sept), with total crushing capacity to top 95 million tonnes annually, said the China National Grain and Oils Information Centre (CNGOIC).
The capacity expansion has boosted China's increase of soy imports,the centre said in a report on its website (www.grain.gov.cn).
Renewed rains seen replenishing Argentine soils
BUENOS AIRES, Oct 26 (Reuters) - Rains in Argentine corn and soy-farming regions over the last week should replenish soil moisture levels and help crops withstand drier conditions caused by the La Nina weather anomaly, a metrologist said onTuesday.
The South American country is the No. 1 global supplier of soyoil and soymeal and the third-biggest exporter of uncrushed beans, so markets are closely watching for any signs of dry conditions that could harm crops.
Siat's Ghana palm oil to go green in 2011
LONDON, Oct 26 (Reuters) - African palm oil producer Siat Group is set to get its Ghanaian output certified as sustainable by early next year, the Brussels based firm said on Tuesday.
The Roundtable on Sustainable Palm Oil (RSPO), an industry body of consumers, green groups and plantation companies, was formed in 2004 and aims to promote growth and use of sustainable oil palm products.
Argentina Seen Setting New Crop Records - Official (Source : CME)
Argentina' farmers are on track to break the record grain output seen last season, with production topping 100 million tons, the country's Vice Minister of Agriculture, Lorenzo Basso, said in an interview. With soybean planting just kicking off, conditions are ideal after recent showers and prices are sky-high right now. Basso estimated that production would set a new record of 55 million metric tons this season. Virtually all of that will be exported as either beans, meal or oil, he said. Argentina is the world's third largest soybean exporter after the U.S. and Brazil. Argentina leads the world in soymeal and soyoil exports. Basso also said that China had resumed heavy soyoil buying after lifting a block on the trade earlier this month. The Chinese are likely to end the year with purchases similar to those in 2009, he added. China is the largest importer of soyoil and dealt Argentine exporters a stinging blow earlier this year when it blocked soyoil imports from Argentina, citing sanitary reasons.
However, the move was widely seen as retaliation for barriers imposed on Chinese goods by Argentina amid a host of anti-dumping investigations. Argentina, the world's third-largest corn exporter, is also set to smash last year's corn record, with between 26 million and 27 million tons grown, Basso said. That would be up sharply from the 22.5 million tons grown last year, according to the U.S. Department of Agriculture. About two-thirds of the corn crop has been planted to date and conditions are good after recent showers. Basso said that about 70% of the corn crop would likely be cleared for export after about 8 million tons are set aside for domestic consumption. Argentina tightly regulates corn and wheat exports, only granting export permits once it has confirmed sufficient stocks for local residents. While farmers worry that dry weather towards the end of the year due to the La Nina weather phenomenon may affect the crops, for now soil moisture levels are excellent across much of the farm belt.
That has boosted prospects for the developing wheat crop, with Basso estimating production of about 13 million tons. That's up a million tons from the Agriculture Ministry's current forecast. Of that crop, Argentina, one of the world's leading wheat exporters, will likely ship almost 7 million tons, with most going to Brazil. Basso estimated domestic consumption next year at 5.5 million to 6 million tons.
Rising Food Costs: Hot Potato In China (Source : CME)
China's hunger is pushing prices of food commodities sharply higher lately. Back home, this boom is becoming a source of worry. Over the next decade, China's annual grain demand is likely to reach 573 million tons, which is above its current production levels. Beijing may swiftly become more reliant than ever on global markets for a class of commodities it is desperate to keep mostly home-grown. Soybeans traded in Chicago are at the highest price in 14 months, largely because of the strength of Chinese demand. Palm oil on the Malaysia Derivatives Exchange breached a 27-month peak this week. Thai rice prices are nearing a six-month high. Inside China, this already has gone from just market play to a matter of public interest. In October, the price of staples such as cooking oil and sugar sold in China's supermarkets jumped 10% to 13%. News of food shortages -- in corn, wheat, garlic, mung beans and sugar -- have dominated local headlines this year.
Food is a political hot potato, and accounts for a third of the basket of goods used to calculate inflation. So far, the government has chosen to respond within markets. It has auctioned millions of tons in reserves of grain, cooking oil, sugar and cotton, and publicly threatened to punish "speculators." Last week, the central bank raised interest rates, in part to slow price gains. Nonetheless, the gains have been accelerating. True, the last reported inflation rate -- 3.6% in September -- was still well below the 12-year high of 8.7%, touched in early 2008, but food-price increase are back at those high rates. Back then, Beijing imposed price caps on grains, edible oils, meat, milk and eggs to bring inflation back to an even keel. It took a year and a global financial crisis before the caps were lifted. Certainly, that is bitter medicine, which limits efficiency and risks hurting product quality.
But with the world betting on a richer, hungrier giant, the government knows the danger of inflation -- and the difficult job of controlling it -- is back.
Palm extends losses on dollar; China soyoil off 2-yr top
KUALA LUMPUR, Oct 27 (Reuters) - Malaysian palm oil extended losses and China's soyoil market tumbled from two-year highs as a stronger dollar made commodities priced in the currency expensive and unattractive as an inflation hedge.
"Palm oil followed a correction of China's soyoil and profit taking on a stronger dollar," said a trader in Kuala Lumpur.
China buys more Argentina soyoil as price rises-CNGOIC
BEIJING, Oct 27 (Reuters) - Chinese companies booked about 250,000 tonnes of soyoil this week, mainly from Argentina, for March-to-May shipment after Beijing lifted a ban on imports from the world's largest exporter, an official think tank said.
Some of the shipments could come from Brazil as an alternative supplier, the China National Grain and Oils Information Centre (CNGOIC) said in a report on its website (www.grain.gov.cn) on Wednesday.
China soy crush output to top 95 mln T 2010/2011-CNGOIC
BEIJING, Oct 27 (Reuters) - China will add 11 million tonnes of new soy crush capacity in 2010/2011 (Oct/Sept), with total crushing capacity to top 95 million tonnes annually, said the China National Grain and Oils Information Centre (CNGOIC).
The capacity expansion has boosted China's increase of soy imports,the centre said in a report on its website (www.grain.gov.cn).
Renewed rains seen replenishing Argentine soils
BUENOS AIRES, Oct 26 (Reuters) - Rains in Argentine corn and soy-farming regions over the last week should replenish soil moisture levels and help crops withstand drier conditions caused by the La Nina weather anomaly, a metrologist said onTuesday.
The South American country is the No. 1 global supplier of soyoil and soymeal and the third-biggest exporter of uncrushed beans, so markets are closely watching for any signs of dry conditions that could harm crops.
Siat's Ghana palm oil to go green in 2011
LONDON, Oct 26 (Reuters) - African palm oil producer Siat Group is set to get its Ghanaian output certified as sustainable by early next year, the Brussels based firm said on Tuesday.
The Roundtable on Sustainable Palm Oil (RSPO), an industry body of consumers, green groups and plantation companies, was formed in 2004 and aims to promote growth and use of sustainable oil palm products.
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