Soybeans (Source: CME)
US soybean futures retreated on less threatening longer range weather forecasts and slowing demand. Weather models projecting more rain for the Midwest in August set stage for the declines, with lower than expected crush and export data adding to the lower theme, analysts said. Yet, prices continued to hold within recent trading ranges, as there remain enough crop and debt uncertainties to limit selling, analysts say. A firmer US dollar added further pressure to encourage some end of month profits taking. CBOT Nov soy end down 9c at $13.71 1/2/bushel.
Soybean Meal/Oil (Source: CME)
Soy product futures were mixed, with soymeal managing to withstand selling pressure from soybeans on smaller than expected June inventories. US Census Bureau reported June soymeal supplies shrunk in June, a reflection of lower crush rates and better than expected demand, analysts say. Soyoil fell on traders buying soymeal and selling soyoil on spreads, as ample inventories and lagging demand pressured soyoil values. CBOT Dec soymeal end flat at $363.60/short ton, and Dec soyoil finish down 1.3% at 56.55 cents/pound.
Palm oil drops U.S. debt jitters, improved soy weather
KUALA LUMPUR, July 28 (Reuters) - Malaysian palm oil futures dropped 1.2 percent as concerns over a looming global debt crisis and improved weather for parched U.S. soy crops prompted investors to cut back positions.
"Sentiment is really weak. We could be seeing more profit taking in the days to come but the hot weather has started to hurt soy yields in the U.S.," said a trader with a foreign commodities brokerage.
Friday, July 29, 2011
Thursday, July 28, 2011
20110728 1810 FCPO EOD Daily Chart Study.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : weakening, buyer reducing position.
Support : 3100, 3070, 3050, 3020 level.
Resistance : 3150, 3200, 3250, 3270 level.
Comment :
FCPO closed recorded small loss with little improved volume participation while overnight soy oil closed lower and currently trading little higher parring yesterday loss.
Mixed news on higher Indonesia palm oil export, industry expert Mr. Dorad Mistry view on stock and production level to stayed at high level for the 2nd half of this year and uncertain weather condition over soybean and palm tree planting area resulted FCPO to trade little lower.
Daily chart formed a doji bar candle position nearer to middle Bollinger band level after market opened lower, dive deeper quickly and recover upward through out the remaining of the trading session salvaging partial of intraday loss to closed near opening price.
Chart reading remained suggesting a side way range bound little upside biased market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20110728 1748 FKLI EOD Daily Chart Study.
FKLI closed : 1546 changed : -6 points, volume : lower.
Bollinger band reading : downside biased with possible pullback correction.
MACD Histrogram : falling lower, seller holding on.
Support : 1540, 1530, 1515, 1500 level.
Resistance : 1550, 1565, 1570, 1580 level.
Comment :
FKLI closed recorded loss with decreased volume traded doing about 6 points discount compare to cash market that closed lower while Asia markets closed mostly lower and European markets currently trading weaker with overnight U.S. market closed recorded severe losses.
Still pending deadlock over raising the federal debt limit, declined in durable goods orders in the U.S. and Standard & Poor’s saying that Greece will partially default on its debt once European officials push through a plan that will see bondholders foot part of the bill of a second bailout agreed to last week in Brussels dragged down regional banking stocks prices.
Daily chart formed a doji bar candle closed near lower Bollinger band level after market opened lower, trade range bound tested support and resistance between 1550 and 1540 levels and closed right at opening price.
Technical chart reading suggesting a downside biased market development with possible pullback correction 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.
20110728 1541 Global Market & Commodities Related News.
Asia stocks fall but still outperform other markets
SINGAPORE, July 28 (Reuters) - Asian stocks fell ahead of a long list of corporate results on Thursday that may shed light on the year's earnings outlook, though the region continued to outperform Wall Street in July.
"Buying on dips in companies with good earnings may continue, but exporters may not fare well for the time being as long as there are concerns about the U.S. economy," said Hideyuki Okoshi, general manager at Chibagin Securities in Tokyo.
U.S. wheat falls on export fears, corn eases
SYDNEY, July 28 (Reuters) - U.S. corn and soy futures eased as rain brought relief to stressed crops in the U.S. Midwest, while expectations that weekly USDA export data will show weak wheat sales also dented sentiment.
"It continues to be a soft wheat market supported by corn and corn only, as U.S. exports continue to pencil $20 to $30 per tonne under Russian sales that are coming thick and fast," said Scott Briggs, ANZ Banking Group's London-based commodities director in a market report.
Brazil soy trade cautious on currency measures
SAO PAULO, July 27 (Reuters) - Soybean traders in Brazil were cautiously awaiting further details of the government's decision on Wednesday to tax foreign exchange derivatives to contain the appreciation of the currency, which could complicate hedging operations.
The potentially steep tax on exchange derivatives kicked the Brazilian real off a 12-year high reached on Tuesday, in the government's latest attempt to curb a currency rally that is hampering local and export industries.
Cargill trains Cameroon farmers to boost cocoa output
YAOUNDE, July 27 (Reuters) - U.S. agribusiness firm Cargill Inc [CARG.UL] said on Wednesday it plans to train about 500 cocoa farmers in Cameroon, to help them boost production and quality in the world's fifth cocoa grower.
Wendy Garbutt, communications executive at Cargill, said the programme will mirror a similar project in Ivory Coast, the world's top cocoa producer.
Queue of ships loading Brazil sugar shrinks again
SAO PAULO, July 27 (Reuters) - The number of ships loading sugar at Brazil's ports or preparing to load shortened again to 56 vessels, shipping agency SA Commodities/Unimar said on Wednesday, roughly half the number queuing a year earlier.
The queue of ships has been shrinking steadily after hitting a peak of 86 in early July and stood at 62 vessels a week ago.
US farm cuts may be smaller than expected-Lawmaker
WASHINGTON, July 27 (Reuters) - U.S. agricultural programs face cuts of $10-$11 billion over the next decade as Congress slashes federal spending to reduce the budget deficit, said a senior farm-state Democrat on Wednesday.
While such reductions would be on the lower end of suggestions of as high as $35 billion over 10 years, there would still be less money available when the House and Senate Agriculture committees begin overhauling the U.S. farm policy next year.
Ethiopia coffee exports hit record high
ADDIS ABABA, July 27 (Reuters) - Ethiopia earned a record $841.6 million from the export of nearly 200,000 tonnes of coffee in 2010/2011, trade data showed on Wednesday, thanks to lower output from traditional giants Colombia and Brazil and higher demand from India and China.
Africa's biggest coffee producer intends to boost its agricultural output by 2015, raising coffee to 700,000 tonnes from 300,000 tonnes, under a five-year economic development plan launched last year.
Russia grain harvest surges 58 pct from previous week
MOSCOW, July 27 (Reuters) - Russia's grain crop surged 58 percent week-on-week as the 2011 harvest gathered pace, Agriculture Ministry data released on Wednesday showed.
It said the grain harvest reached 27 million tonnes by bunker weight, with wheat accounting for 21.2 million tonnes of the total.
Brazil sees more ethanol imports this season
SAO PAULO, July 27 (Reuters) - Brazil will expand ethanol imports this year and may also boost gasoline imports to meet booming fuel demand, industry officials said on Wednesday, in another sign of Brazil's growing importance in global fuel markets.
Brazil is likely to import a further 250 million liters of anhydrous ethanol by the end of the 2011/12 sugar cane season, on top of 400 million liters brought in so far this season, Antonio de Padua Rodrigues, technical director of cane industry association Unica told Reuters.
Ivory Coast '11/12 cocoa output down 15 pct-Armajaro
LONDON, July 27 (Reuters) - Ivory Coast and Ghana 2011/12 cocoa production is expected to fall 15 percent on the year, helping switch the global market into a deficit of over 100,000 tonnes, international trade house Armajaro Trading Limited said on Wednesday.
Ideal weather conditions in West Africa led to a bumper crop in 2010/11 and Armajaro expects the coming 2011/12 crop to revert to lower production.
U.S. oil slips for 2nd day as high stocks, debt talks weigh
SINGAPORE, July 28 (Reuters) - U.S. oil fell for a second session as the United States struggled to reach an agreement on raising the debt ceiling to avoid a default, while the first release of crude stocks in the country unexpectedly boosted inventories.
"Despite the negative macroeconomic context, supply side impacts appear to be supporting prices," Natalie Robertson, an analyst at ANZ, said.
Obama to announce new fuel economy standards Friday
WASHINGTON/DETROIT, July 27 (Reuters) - The Obama administration has reached a compromise with automakers on a new fuel economy target for cars and trucks, ending months of negotiations on this pivotal mandate for the auto industry.
Automakers' fleets will now have to average 54.5 miles per gallon by 2025, according to people familiar with the plan.
Cabot Oil Q2 tops Street; Sells assets for $285 mln
BANGALORE, July 27 (Reuters) - Oil and natural gas producer Cabot Oil and Gas Corp posted its eighth estimate beating quarterly profit in at least nine quarters, helped by higher production and agreed to sell acreage in Wyoming, Colorado and Utah for $285 million to an undisclosed buyer.
Separately, BreitBurn Energy Partners L.P. said it would acquire oil and gas producing properties in the same three states for the same amount from an unnamed seller.
Silver to rise but tarnished by May's rout
LONDON, July 27 (Reuters) - Silver prices look set for further gains after rallying more than 15 percent this month on gold's coat-tails, but the metal will struggle to revisit this year's record high near $50 an ounce after investors were burnt by May's heart-stopping price correction.
Silver was one of 2010's best-performing commodities and surged to a record $49.51 an ounce in April as investors favoured precious metals as a safe store of value during the euro zone debt crisis.
Vale's profit seen hitting record on ore prices
RIO DE JANEIRO/SAO PAULO, July 27 (Reuters) - Brazil's Vale, the world's second-largest mining company, is expected to more than double its second-quarter profit on stronger iron ore prices, a Reuters poll of analysts showed on Wednesday.
Analysts expect Vale to post a profit of $7.53 billion in the quarter, compared with $3.71 billion a year earlier, according to the average estimate of five analysts. Net income is expected to rise 10 percent from $6.83 billion in the prior quarter, the poll found.
LME copper nudged down by debt woes in US and Europe
SHANGHAI, July 28 (Reuters) - Copper edged down as concerns over the deadlock in U.S. debt ceiling talks and euro debt contagion overshadowed supply worries following a declaration of force majeure by the world's biggest copper mine, Chile's Escondida.
"News of the strike has been around for a while, which may have removed some of its bite. Also, there is just very little investor interest in copper at the moment for the force majeure news to drive the market," said CRU copper analyst Qu Yi.
Gold pauses after hitting records; US debt in focus
SINGAPORE, July 28 (Reuters) - Spot gold took a breather after hitting record highs for two sessions this week, as sentiment remained supported by the deadlocked U.S. debt ceiling talks, with both parties trying to reach a compromise.
"It looks like a downgrade has been priced in with all the sell-off in the dollar," said a Singapore-based trader. "Gold remains a good trade overall with some people targeting $1,650s or $1,660s."
SINGAPORE, July 28 (Reuters) - Asian stocks fell ahead of a long list of corporate results on Thursday that may shed light on the year's earnings outlook, though the region continued to outperform Wall Street in July.
"Buying on dips in companies with good earnings may continue, but exporters may not fare well for the time being as long as there are concerns about the U.S. economy," said Hideyuki Okoshi, general manager at Chibagin Securities in Tokyo.
U.S. wheat falls on export fears, corn eases
SYDNEY, July 28 (Reuters) - U.S. corn and soy futures eased as rain brought relief to stressed crops in the U.S. Midwest, while expectations that weekly USDA export data will show weak wheat sales also dented sentiment.
"It continues to be a soft wheat market supported by corn and corn only, as U.S. exports continue to pencil $20 to $30 per tonne under Russian sales that are coming thick and fast," said Scott Briggs, ANZ Banking Group's London-based commodities director in a market report.
Brazil soy trade cautious on currency measures
SAO PAULO, July 27 (Reuters) - Soybean traders in Brazil were cautiously awaiting further details of the government's decision on Wednesday to tax foreign exchange derivatives to contain the appreciation of the currency, which could complicate hedging operations.
The potentially steep tax on exchange derivatives kicked the Brazilian real off a 12-year high reached on Tuesday, in the government's latest attempt to curb a currency rally that is hampering local and export industries.
Cargill trains Cameroon farmers to boost cocoa output
YAOUNDE, July 27 (Reuters) - U.S. agribusiness firm Cargill Inc [CARG.UL] said on Wednesday it plans to train about 500 cocoa farmers in Cameroon, to help them boost production and quality in the world's fifth cocoa grower.
Wendy Garbutt, communications executive at Cargill, said the programme will mirror a similar project in Ivory Coast, the world's top cocoa producer.
Queue of ships loading Brazil sugar shrinks again
SAO PAULO, July 27 (Reuters) - The number of ships loading sugar at Brazil's ports or preparing to load shortened again to 56 vessels, shipping agency SA Commodities/Unimar said on Wednesday, roughly half the number queuing a year earlier.
The queue of ships has been shrinking steadily after hitting a peak of 86 in early July and stood at 62 vessels a week ago.
US farm cuts may be smaller than expected-Lawmaker
WASHINGTON, July 27 (Reuters) - U.S. agricultural programs face cuts of $10-$11 billion over the next decade as Congress slashes federal spending to reduce the budget deficit, said a senior farm-state Democrat on Wednesday.
While such reductions would be on the lower end of suggestions of as high as $35 billion over 10 years, there would still be less money available when the House and Senate Agriculture committees begin overhauling the U.S. farm policy next year.
Ethiopia coffee exports hit record high
ADDIS ABABA, July 27 (Reuters) - Ethiopia earned a record $841.6 million from the export of nearly 200,000 tonnes of coffee in 2010/2011, trade data showed on Wednesday, thanks to lower output from traditional giants Colombia and Brazil and higher demand from India and China.
Africa's biggest coffee producer intends to boost its agricultural output by 2015, raising coffee to 700,000 tonnes from 300,000 tonnes, under a five-year economic development plan launched last year.
Russia grain harvest surges 58 pct from previous week
MOSCOW, July 27 (Reuters) - Russia's grain crop surged 58 percent week-on-week as the 2011 harvest gathered pace, Agriculture Ministry data released on Wednesday showed.
It said the grain harvest reached 27 million tonnes by bunker weight, with wheat accounting for 21.2 million tonnes of the total.
Brazil sees more ethanol imports this season
SAO PAULO, July 27 (Reuters) - Brazil will expand ethanol imports this year and may also boost gasoline imports to meet booming fuel demand, industry officials said on Wednesday, in another sign of Brazil's growing importance in global fuel markets.
Brazil is likely to import a further 250 million liters of anhydrous ethanol by the end of the 2011/12 sugar cane season, on top of 400 million liters brought in so far this season, Antonio de Padua Rodrigues, technical director of cane industry association Unica told Reuters.
Ivory Coast '11/12 cocoa output down 15 pct-Armajaro
LONDON, July 27 (Reuters) - Ivory Coast and Ghana 2011/12 cocoa production is expected to fall 15 percent on the year, helping switch the global market into a deficit of over 100,000 tonnes, international trade house Armajaro Trading Limited said on Wednesday.
Ideal weather conditions in West Africa led to a bumper crop in 2010/11 and Armajaro expects the coming 2011/12 crop to revert to lower production.
U.S. oil slips for 2nd day as high stocks, debt talks weigh
SINGAPORE, July 28 (Reuters) - U.S. oil fell for a second session as the United States struggled to reach an agreement on raising the debt ceiling to avoid a default, while the first release of crude stocks in the country unexpectedly boosted inventories.
"Despite the negative macroeconomic context, supply side impacts appear to be supporting prices," Natalie Robertson, an analyst at ANZ, said.
Obama to announce new fuel economy standards Friday
WASHINGTON/DETROIT, July 27 (Reuters) - The Obama administration has reached a compromise with automakers on a new fuel economy target for cars and trucks, ending months of negotiations on this pivotal mandate for the auto industry.
Automakers' fleets will now have to average 54.5 miles per gallon by 2025, according to people familiar with the plan.
Cabot Oil Q2 tops Street; Sells assets for $285 mln
BANGALORE, July 27 (Reuters) - Oil and natural gas producer Cabot Oil and Gas Corp posted its eighth estimate beating quarterly profit in at least nine quarters, helped by higher production and agreed to sell acreage in Wyoming, Colorado and Utah for $285 million to an undisclosed buyer.
Separately, BreitBurn Energy Partners L.P. said it would acquire oil and gas producing properties in the same three states for the same amount from an unnamed seller.
Silver to rise but tarnished by May's rout
LONDON, July 27 (Reuters) - Silver prices look set for further gains after rallying more than 15 percent this month on gold's coat-tails, but the metal will struggle to revisit this year's record high near $50 an ounce after investors were burnt by May's heart-stopping price correction.
Silver was one of 2010's best-performing commodities and surged to a record $49.51 an ounce in April as investors favoured precious metals as a safe store of value during the euro zone debt crisis.
Vale's profit seen hitting record on ore prices
RIO DE JANEIRO/SAO PAULO, July 27 (Reuters) - Brazil's Vale, the world's second-largest mining company, is expected to more than double its second-quarter profit on stronger iron ore prices, a Reuters poll of analysts showed on Wednesday.
Analysts expect Vale to post a profit of $7.53 billion in the quarter, compared with $3.71 billion a year earlier, according to the average estimate of five analysts. Net income is expected to rise 10 percent from $6.83 billion in the prior quarter, the poll found.
LME copper nudged down by debt woes in US and Europe
SHANGHAI, July 28 (Reuters) - Copper edged down as concerns over the deadlock in U.S. debt ceiling talks and euro debt contagion overshadowed supply worries following a declaration of force majeure by the world's biggest copper mine, Chile's Escondida.
"News of the strike has been around for a while, which may have removed some of its bite. Also, there is just very little investor interest in copper at the moment for the force majeure news to drive the market," said CRU copper analyst Qu Yi.
Gold pauses after hitting records; US debt in focus
SINGAPORE, July 28 (Reuters) - Spot gold took a breather after hitting record highs for two sessions this week, as sentiment remained supported by the deadlocked U.S. debt ceiling talks, with both parties trying to reach a compromise.
"It looks like a downgrade has been priced in with all the sell-off in the dollar," said a Singapore-based trader. "Gold remains a good trade overall with some people targeting $1,650s or $1,660s."
20110728 1417 Local & Global Market Related News.
10:24 28Jul11 Reuters-CHINA DOES NOT PURSUE LARGE HOLDINGS OF FX RESERVES -SAFE
10:25 28Jul11 Reuters-CHINA'S FX RESERVES RISE IS NOT A DIRECT DRIVER OF COUNTRY'S INFLATION -SAFE
10:26 28Jul11 Reuters-CHINA WILL CONTINUE TO DIVERSIFY INVESTMENT OF ITS FX RESERVES -SAFE
10:26 28Jul11 Reuters-CHINA WILL WIDEN CHANNELS FOR CAPITAL OUTFLOWS -SAFE
10:27 28Jul11 Reuters-CHINA WILL GRADUALLY MAKE YUAN CONVERTIBLE ON CAPITAL ACCOUNT
10:36 28Jul11 Reuters-China to press ahead with FX reserves diversification
12:44 28Jul11 Reuters-CHINA'S PREMIER WEN SAYS VISIT TO TRAIN DISASTER SITE DELAYED DUE TO HIS MEDICAL PROBLEMS
12:46 28Jul11 Reuters-CHINA'S PREMIER WEN DID NOT SPECIFY NATURE OF ILLNESS THAT CAUSED HIM TO BE HOSPITALIZED FOR 11 DAYS
12:29 28Jul11 Reuters-CREDIT SUISSE SAYS Q2 NET PROFIT 768 MLN
12:29 28Jul11 Reuters-REUTERS POLL FOR CREDIT SUISSE Q2 NET PROFIT WAS 1.020 BLN
12:29 28Jul11 Reuters-CREDIT SUISSE SAYS END-Q2 TIER 1 RATIO 18.2 PCT VS 18.2 PCT REPORTED END-Q1
12:30 28Jul11 Reuters-CREDIT SUISSE SAYS Q2 GROUP NET NEW ASSETS IN PRIVATE BANKING
12:30 28Jul11 Reuters-CREDIT SUISSE SAYS Q2 GROUP NET NEW ASSETS 14.2 BLN IN REUTERS POLL
12:31 28Jul11 Reuters-CREDIT SUISSE SAYS Q2 INVESTMENT BANK PRETAX INCOME 231 MLN
12:34 28Jul11 Reuters-CREDIT SUISSE SAYS TO CUT 4 PCT OF JOBS
BEIJING, July 28 (Reuters) - China will press ahead with diversification of its $3.2 trillion foreign exchange reserves, and does not pursue large-scale currency holdings, the State Administration of Foreign Exchange said on Thursday. The foreign exchange regulator also pledged to widen the channel for capital outflows and take gradual steps to make the yuan convertible on the capital account.
KUALA LUMPUR, July 28 (Reuters) - Malaysia's Petronas on Thursday said it has made two significant gas discoveries in the shallow water areas offshore the west coast of Sabah state.
10:25 28Jul11 Reuters-CHINA'S FX RESERVES RISE IS NOT A DIRECT DRIVER OF COUNTRY'S INFLATION -SAFE
10:26 28Jul11 Reuters-CHINA WILL CONTINUE TO DIVERSIFY INVESTMENT OF ITS FX RESERVES -SAFE
10:26 28Jul11 Reuters-CHINA WILL WIDEN CHANNELS FOR CAPITAL OUTFLOWS -SAFE
10:27 28Jul11 Reuters-CHINA WILL GRADUALLY MAKE YUAN CONVERTIBLE ON CAPITAL ACCOUNT
10:36 28Jul11 Reuters-China to press ahead with FX reserves diversification
12:44 28Jul11 Reuters-CHINA'S PREMIER WEN SAYS VISIT TO TRAIN DISASTER SITE DELAYED DUE TO HIS MEDICAL PROBLEMS
12:46 28Jul11 Reuters-CHINA'S PREMIER WEN DID NOT SPECIFY NATURE OF ILLNESS THAT CAUSED HIM TO BE HOSPITALIZED FOR 11 DAYS
12:29 28Jul11 Reuters-CREDIT SUISSE
12:29 28Jul11 Reuters-REUTERS POLL FOR CREDIT SUISSE Q2 NET PROFIT WAS 1.020 BLN
12:29 28Jul11 Reuters-CREDIT SUISSE SAYS END-Q2 TIER 1 RATIO 18.2 PCT VS 18.2 PCT REPORTED END-Q1
12:30 28Jul11 Reuters-CREDIT SUISSE SAYS Q2 GROUP NET NEW ASSETS IN PRIVATE BANKING
12:30 28Jul11 Reuters-CREDIT SUISSE SAYS Q2 GROUP NET NEW ASSETS 14.2 BLN IN REUTERS POLL
12:31 28Jul11 Reuters-CREDIT SUISSE SAYS Q2 INVESTMENT BANK PRETAX INCOME 231 MLN
12:34 28Jul11 Reuters-CREDIT SUISSE
BEIJING, July 28 (Reuters) - China will press ahead with diversification of its $3.2 trillion foreign exchange reserves, and does not pursue large-scale currency holdings, the State Administration of Foreign Exchange said on Thursday. The foreign exchange regulator also pledged to widen the channel for capital outflows and take gradual steps to make the yuan convertible on the capital account.
KUALA LUMPUR, July 28 (Reuters) - Malaysia's Petronas on Thursday said it has made two significant gas discoveries in the shallow water areas offshore the west coast of Sabah state.
20110728 1411 Palm Oil Related News.
JAKARTA, July 28 (Reuters) - Indonesia's palm oil exports are seen at 16.5 to 17 million tonnes this year, up as much as 9 percent from 2010, as production is seen rising to 23 million tonnes, said an executive at the nation's palm oil association (GAPKI) on Thursday.
12:56 28Jul11 RTRS-VEGOILS-Palm oil drops U.S. debt jitters, improved soy weather
(Adds details, comments, quotes)
* Palm oil futures could drop as low as 2,800 rgt -Mistry
* U.S. debt talks still deadlocked
* Some rains in the U.S. Midwest spur some profit-taking
By Niluksi Koswanage
KUALA LUMPUR, July 28 (Reuters) - Malaysian palm oil futures dropped 1.2 percent on Thursday as concerns over a looming global debt crisis and improved weather for parched U.S. soy crops prompted investors to cut back positions.
A possible U.S. credit rating downgrade has weighed on financial markets, adding to weak sentiment in palm oil futures that have lost 18 percent so far this year.
A turn to better crop weather in the U.S. as well as bearish estimates for ample palm oil supply from top industry analyst Dorab Mistry further pressured the vegetable oil markets.
"Sentiment is really weak. We could be seeing more profit taking in the days to come but the hot weather has started to hurt soy yields in the U.S.," said a trader with a foreign commodities brokerage.
"Also, stocks are growing in palm oil producers like Malaysia and Indonesia, so we are in for volatile trade," he added.
By midday, the benchmark October contract on the Bursa Malaysia Derivatives Exchange dropped 38 ringgit to 3,092 ringgit ($1,051) per tonne after going as low as 3,085 ringgit.
Traded volumes were light at 7,357 lots of 25 tonnes each, compared to the usual 12,500 lots as investors remained cautious.
Technicals were negative. Reuters analyst Wang Tao said Malaysian palm oil will fall further to 3,064 ringgit per tonne, as it has dropped below a rising channel.
Leading palm oil analyst Dorab Mistry said the market could drop as low as 2,800 ringgit in September as stocks in Malaysia remain stubbornly high.
Crude oil, a barometer for commodities and the global economy, fell further in Asian trade as U.S. inventories rose and debate on raising the U.S. debt ceiling before an Aug. 2 deadline to avoid default went unsettled.
U.S. soyoil for August delivery fell 0.2 percent on Thursday, aided by rain relieving stressed crops in the United States although signs of improved China demand for soybeans limited losses.
China is likely to start importing more soybeans and vegetable oils from July after weak purchases in past months, said a Hamburg-based oilseeds analysts Oil World on Tuesday.
The most active May 2012 soyoil on China's Dalian Commodity Exchange
fell 0.5 percent.
08:15 28Jul11 Reuters-STUBBORNLY HIGH MALAYSIAN PALM OIL STOCKS MAY SEE PRICES FALL TO 2,800 RINGGIT LOW IN SEPT-ANALYST DORAB MISTRY
08:15 28Jul11 Reuters-MALAYSIAN PALM OIL TO FIRST RANGE BETWEEN 3,100 RINGGIT TO 3,300 RGT IN NEXT 6 WEEKS ON U.S. WEATHER CONCERNS - MISTRY
08:15 28Jul11 Reuters-INDONESIA'S 2011 PALM OIL OUTPUT SEEN AT 25.5 MLN TONNES, UP 13.3 PERCENT FROM 2010 - MISTRY
08:15 28Jul11 Reuters-MALAYSIA'S 2011 PALM OIL OUTPUT SEEN AT 19 MLN TONNES, UP 11.8 PERCENT FROM 2010 - MISTRY
08:15 28Jul11 Reuters-GLOBAL VEGOIL SUPPLY GROWTH OUTSTRIPPING DEMAND GROWTH BY 2.7 MLN TONNES, FIRST TIME IN THREE YEARS - MISTRY
KUALA LUMPUR, July 28 (Reuters) - Expectations for rising Southeast Asian palm oil production in the second half of this year have prompted analysts to revise forecasts upwards.
Industry analyst Dorab Ministry revised up estimates for Indonesia and Malaysia, the world top two producers who account of 85 percent of total output.
The market tends to price in Malaysian production data that is issued regularly compared to Indonesia, even though it is the world's largest producer and exporter of the vegetable oil.
Following are estimates for 2011 Indonesian and Malaysian production and new changes:
MALAYSIAN PALM OIL OUTPUT FOR 2011 except for USDA
FORECAST CHANGES
(millions of tonnes)
Official government data 17.6 17.0 in 2010
Dorab Mistry 19.0 earlier forecast 17.3
Oil World 18.6 earlier forecast 17.8 2010 estimate of 16.0
USDA * 17.5 no change previous year 17.8
Ganling 17.5 nil
INDONESIAN PALM OIL OUTPUT FOR 2011 except for USDA
FORECAST CHANGES
(millions of tonnes)
Official government data 24.4 earlier estimate 22-23 2010 forecast of 23.2
Dorab Mistry 25.5 earlier forecast 25.0
Oil World 24.0 earlier forecast 23.7 2010 estimate of 22.2
USDA * 23.6 no change previous year 22.0
Ganling 23.2 nil
07:12 28Jul11 -VEGOILS-U.S. crop developments to drive palm oil futures
KUALA LUMPUR, July 28 (Reuters) - The following factors are likely to influence Malaysian palm oil futures and other vegetable oil markets on Thursday.
FUNDAMENTALS
Malaysia palm oil futures rose 0.4 percent in light trade on Wednesday on strong soy markets as China resumed buying and dry weather in the United States, although gains were limited over concerns of a looming U.S. debt crisis.
U.S. wheat futures rallied more than 1 percent on Wednesday as an annual tour of spring wheat fields in the northern U.S. Plains appeared to verify fears that production would fall short of expectations.
Oil prices fell on Wednesday as data showed the first release of crude from the U.S. petroleum reserve unexpectedly pushed up domestic inventories last week, adding to concerns over weak economic data.
MARKET NEWS
Commodities fell in thin volumes on Wednesday as the dollar rebounded on uncertainties over U.S. debt talks, with oil leading the decline as U.S. crude stockpiles mounted.
U.S. stocks suffered their worst day in eight weeks on Wednesday as lackluster earnings and weak economic data hit investors already nervous about faltering debt talks in Washington, while the U.S. dollar rebounded following a sell-off this week.
08:15 28 Jul11 -Stubbornly high stocks to drag on palm oil futures-Mistry By Niluksi Koswanage
KUALA LUMPUR, July 28 (Reuters) - Palm oil futures could drop as low as 2,800 Malaysian ringgit ($947.55) in September as stocks in No. 2 producer Malaysia remain stubbornly high, a top analyst said on Thursday.
That represents a drop of around 29 percent from 2011 high of 3,967 ringgit in February as Godrej International's Dorab Mistry said a high output cycle remains in force and will lead to record high stocks for Malaysia by early December.
But price declines could be limited as a palm oil discount to competing soyoil would widen to a new 2011 peak of $250 per tonne, kicking in more demand, Mistry said. The narrowest discount stood at $2 per tonne in late February, according to Reuters data.
"The legacy of high stocks will continue to pressure prices for some time," Mistry told an industry conference in Sydney.
"I am expecting prices to touch a low in September and to scrape along that bottom for at least four to six weeks. Then a gradual recovery will ensue," he added.
But before that, palm oil futures will range between 3,100 ringgit and 3,300 ringgit in the next six weeks from now as concerns over hot weather affecting the U.S. soy crop has sparked a rally in grains and vegetable oil markets.
"(Malaysian) August crude palm oil production will be affected somewhat by the Ramadan holidays and export demand in summer will be strong," Mistry said, referring to a Muslim fasting observance when estate workers take extended leave.
"As we go into September, it could be a different story."
18:32 27Jul11 -Indonesia's Astra Agro fails to sell 4,000 T palm oil
JAKARTA, July 27 (Reuters) - Astra Agro Lestari, Indonesia's largest listed plantation firm, failed to sell 4,000 tonnes of crude palm oil (CPO) in an auction on Wednesday due to low bids, the firm said in a statement.
Astra offered the CPO at 8,395 rupiah to 8,645 rupiah per kg.
12:56 28Jul11 RTRS-VEGOILS-Palm oil drops U.S. debt jitters, improved soy weather
(Adds details, comments, quotes)
* Palm oil futures could drop as low as 2,800 rgt -Mistry
* U.S. debt talks still deadlocked
* Some rains in the U.S. Midwest spur some profit-taking
By Niluksi Koswanage
KUALA LUMPUR, July 28 (Reuters) - Malaysian palm oil futures dropped 1.2 percent on Thursday as concerns over a looming global debt crisis and improved weather for parched U.S. soy crops prompted investors to cut back positions.
A possible U.S. credit rating downgrade has weighed on financial markets, adding to weak sentiment in palm oil futures that have lost 18 percent so far this year.
A turn to better crop weather in the U.S. as well as bearish estimates for ample palm oil supply from top industry analyst Dorab Mistry further pressured the vegetable oil markets.
"Sentiment is really weak. We could be seeing more profit taking in the days to come but the hot weather has started to hurt soy yields in the U.S.," said a trader with a foreign commodities brokerage.
"Also, stocks are growing in palm oil producers like Malaysia and Indonesia, so we are in for volatile trade," he added.
By midday, the benchmark October contract
Traded volumes were light at 7,357 lots of 25 tonnes each, compared to the usual 12,500 lots as investors remained cautious.
Technicals were negative. Reuters analyst Wang Tao said Malaysian palm oil will fall further to 3,064 ringgit per tonne, as it has dropped below a rising channel.
Leading palm oil analyst Dorab Mistry said the market could drop as low as 2,800 ringgit in September as stocks in Malaysia remain stubbornly high.
Crude oil, a barometer for commodities and the global economy, fell further in Asian trade as U.S. inventories rose and debate on raising the U.S. debt ceiling before an Aug. 2 deadline to avoid default went unsettled.
U.S. soyoil for August delivery
China is likely to start importing more soybeans and vegetable oils from July after weak purchases in past months, said a Hamburg-based oilseeds analysts Oil World on Tuesday.
The most active May 2012 soyoil on China's Dalian Commodity Exchange
fell 0.5 percent.
08:15 28Jul11 Reuters-STUBBORNLY HIGH MALAYSIAN PALM OIL STOCKS MAY SEE PRICES
08:15 28Jul11 Reuters-MALAYSIAN PALM OIL TO FIRST RANGE BETWEEN 3,100 RINGGIT TO 3,300 RGT IN NEXT 6 WEEKS ON U.S. WEATHER CONCERNS - MISTRY
08:15 28Jul11 Reuters-INDONESIA'S 2011 PALM OIL OUTPUT SEEN AT 25.5 MLN TONNES, UP 13.3 PERCENT FROM 2010 - MISTRY
08:15 28Jul11 Reuters-MALAYSIA'S 2011 PALM OIL OUTPUT SEEN AT 19 MLN TONNES, UP 11.8 PERCENT FROM 2010 - MISTRY
08:15 28Jul11 Reuters-GLOBAL VEGOIL SUPPLY GROWTH OUTSTRIPPING DEMAND GROWTH BY 2.7 MLN TONNES, FIRST TIME IN THREE YEARS - MISTRY
KUALA LUMPUR, July 28 (Reuters) - Expectations for rising Southeast Asian palm oil production in the second half of this year have prompted analysts to revise forecasts upwards.
Industry analyst Dorab Ministry revised up estimates for Indonesia and Malaysia, the world top two producers who account of 85 percent of total output.
The market tends to price in Malaysian production data that is issued regularly compared to Indonesia, even though it is the world's largest producer and exporter of the vegetable oil.
Following are estimates for 2011 Indonesian and Malaysian production and new changes:
MALAYSIAN PALM OIL OUTPUT FOR 2011 except for USDA
FORECAST CHANGES
(millions of tonnes)
Official government data 17.6 17.0 in 2010
Dorab Mistry 19.0 earlier forecast 17.3
Oil World 18.6 earlier forecast 17.8 2010 estimate of 16.0
USDA * 17.5 no change previous year 17.8
Ganling 17.5 nil
INDONESIAN PALM OIL OUTPUT FOR 2011 except for USDA
FORECAST CHANGES
(millions of tonnes)
Official government data 24.4 earlier estimate 22-23 2010 forecast of 23.2
Dorab Mistry 25.5 earlier forecast 25.0
Oil World 24.0 earlier forecast 23.7 2010 estimate of 22.2
USDA * 23.6 no change previous year 22.0
Ganling 23.2 nil
07:12 28Jul11 -VEGOILS-U.S. crop developments to drive palm oil futures
KUALA LUMPUR, July 28 (Reuters) - The following factors are likely to influence Malaysian palm oil futures and other vegetable oil markets on Thursday.
FUNDAMENTALS
Malaysia palm oil futures rose 0.4 percent in light trade on Wednesday on strong soy markets as China resumed buying and dry weather in the United States, although gains were limited over concerns of a looming U.S. debt crisis.
U.S. wheat futures rallied more than 1 percent on Wednesday as an annual tour of spring wheat fields in the northern U.S. Plains appeared to verify fears that production would fall short of expectations.
Oil prices fell on Wednesday as data showed the first release of crude from the U.S. petroleum reserve unexpectedly pushed up domestic inventories last week, adding to concerns over weak economic data.
MARKET NEWS
Commodities fell in thin volumes on Wednesday as the dollar rebounded on uncertainties over U.S. debt talks, with oil leading the decline as U.S. crude stockpiles mounted.
U.S. stocks suffered their worst day in eight weeks on Wednesday as lackluster earnings and weak economic data hit investors already nervous about faltering debt talks in Washington, while the U.S. dollar rebounded following a sell-off this week.
08:15 28 Jul11 -Stubbornly high stocks to drag on palm oil futures-Mistry By Niluksi Koswanage
KUALA LUMPUR, July 28 (Reuters) - Palm oil futures
That represents a drop of around 29 percent from 2011 high of 3,967 ringgit in February as Godrej International's Dorab Mistry said a high output cycle remains in force and will lead to record high stocks for Malaysia by early December.
But price declines could be limited as a palm oil discount to competing soyoil would widen to a new 2011 peak of $250 per tonne, kicking in more demand, Mistry said. The narrowest discount stood at $2 per tonne in late February, according to Reuters data.
"The legacy of high stocks will continue to pressure prices for some time," Mistry told an industry conference in Sydney.
"I am expecting prices to touch a low in September and to scrape along that bottom for at least four to six weeks. Then a gradual recovery will ensue," he added.
But before that, palm oil futures will range between 3,100 ringgit and 3,300 ringgit in the next six weeks from now as concerns over hot weather affecting the U.S. soy crop has sparked a rally in grains and vegetable oil markets.
"(Malaysian) August crude palm oil production will be affected somewhat by the Ramadan holidays and export demand in summer will be strong," Mistry said, referring to a Muslim fasting observance when estate workers take extended leave.
"As we go into September, it could be a different story."
18:32 27Jul11 -Indonesia's Astra Agro fails to sell 4,000 T palm oil
JAKARTA, July 27 (Reuters) - Astra Agro Lestari
Astra offered the CPO at 8,395 rupiah to 8,645 rupiah per kg.
20110728 1220 Soybeans Related News.
Timing is key to watering soybeans (Source: www.agriculture.com)
Dave Mowitz 07/27/2011 @ 11:04am
Building on years of field research, University of Nebraska agronomists are rewriting the rules on how to irrigate soybeans. Their approach is to delay irrigation on beans until early pod formation. The crop, instead, relies on stored soil moisture and early-season rainfalls to get by until that point.
“We've learned a lot about how to irrigate soybeans that is quite remarkable compared to how most farmers now irrigate,” points out University of Nebraska agronomist Ken Cassman. His observations build on years of research by Cassman's colleague, soybean geneticist Jim Specht, into soybeans' drought resistance and the best methods of irrigation.
Too much too soon
Typically, farmers plant soybeans in early May and begin irrigating in June. In years with average or above-average early-season rainfall, that can result in too much water being applied to plants. Too much moisture can result in taller and leafier soybean plants that are more susceptible to disease and lodging at harvest.
Avoiding too much early irrigation, on the other hand, encourages plants to develop stronger, healthier root systems that grow deeper. “You defer irrigation because there's typically enough stored moisture and enough rainfall even in dry years to create a plant that can achieve high yields,” Specht explains.
Soybeans need about 19 inches of water from planting in early May through harvest to yield about 85 bushels. If soybeans don't get any of that from early-season rains, producers will have to catch up with watering once deferred irrigation begins in early July. But if early-season rains are normal, the deferred approach could reduce the amount of irrigation water applied throughout the season.
Specht and Cassman's research has been incorporated into an online irrigation scheduling program called SoyWater. Developed by Specht and Jessica Torrion at the University of Nebraska, it is available online at www.soywater.unl.edu. This online spreadsheet offers producers access to the two most popular irrigation strategies in practice.
Soil water balance method
With the first approach, called the Soil Water Balance Method, the user chooses an irrigation trigger, which represents a percentage depletion of the maximum water (field capacity) in the crop root zone. This depletion is caused by crop withdrawal of soil water.
Water balance method
The Water Balance Method, based on Specht's research, is advisable for fields with soils that have a high water-holding capacity (such as silty clay loam soils) and in years when the field water content is at full capacity at planting or emergence. In this strategy, the producer allows the soybean crop to extract the water it needs for vegetative growth and early reproductive development from the stored soil water present at emergence and any postemergence rainfall stored in the root zone prior to the R3 stage.
Dave Mowitz 07/27/2011 @ 11:04am
Building on years of field research, University of Nebraska agronomists are rewriting the rules on how to irrigate soybeans. Their approach is to delay irrigation on beans until early pod formation. The crop, instead, relies on stored soil moisture and early-season rainfalls to get by until that point.
“We've learned a lot about how to irrigate soybeans that is quite remarkable compared to how most farmers now irrigate,” points out University of Nebraska agronomist Ken Cassman. His observations build on years of research by Cassman's colleague, soybean geneticist Jim Specht, into soybeans' drought resistance and the best methods of irrigation.
Too much too soon
Typically, farmers plant soybeans in early May and begin irrigating in June. In years with average or above-average early-season rainfall, that can result in too much water being applied to plants. Too much moisture can result in taller and leafier soybean plants that are more susceptible to disease and lodging at harvest.
Avoiding too much early irrigation, on the other hand, encourages plants to develop stronger, healthier root systems that grow deeper. “You defer irrigation because there's typically enough stored moisture and enough rainfall even in dry years to create a plant that can achieve high yields,” Specht explains.
Soybeans need about 19 inches of water from planting in early May through harvest to yield about 85 bushels. If soybeans don't get any of that from early-season rains, producers will have to catch up with watering once deferred irrigation begins in early July. But if early-season rains are normal, the deferred approach could reduce the amount of irrigation water applied throughout the season.
Specht and Cassman's research has been incorporated into an online irrigation scheduling program called SoyWater. Developed by Specht and Jessica Torrion at the University of Nebraska, it is available online at www.soywater.unl.edu. This online spreadsheet offers producers access to the two most popular irrigation strategies in practice.
Soil water balance method
With the first approach, called the Soil Water Balance Method, the user chooses an irrigation trigger, which represents a percentage depletion of the maximum water (field capacity) in the crop root zone. This depletion is caused by crop withdrawal of soil water.
Water balance method
The Water Balance Method, based on Specht's research, is advisable for fields with soils that have a high water-holding capacity (such as silty clay loam soils) and in years when the field water content is at full capacity at planting or emergence. In this strategy, the producer allows the soybean crop to extract the water it needs for vegetative growth and early reproductive development from the stored soil water present at emergence and any postemergence rainfall stored in the root zone prior to the R3 stage.
20110728 1118 Global Market & Commodities Related News.
GLOBAL MARKETS: Asia stocks fall but still outperform other markets
SINGAPORE, July 28 (Reuters) - Asian stocks fell ahead of a long list of corporate results on Thursday that may shed light on the year's earnings outlook, though the region continued to outperform Wall Street in July.
"Buying on dips in companies with good earnings may continue, but exporters may not fare well for the time being as long as there are concerns about the U.S. economy," said Hideyuki Okoshi, general manager at Chibagin Securities in Tokyo.
Obama to announce new fuel economy standards Friday
WASHINGTON/DETROIT, July 27 (Reuters) - The Obama administration has reached a compromise with automakers on a new fuel economy target for cars and trucks, ending months of negotiations on this pivotal mandate for the auto industry.
Automakers' fleets will now have to average 54.5 miles per gallon by 2025, according to people familiar with the plan.
OIL: Oil falls as US inventories rise, debt talks falter
NEW YORK, July 27 (Reuters) - Oil prices fell on Wednesday as data showed the first release of crude from the U.S. petroleum reserve unexpectedly pushed up domestic inventories last week, adding to concerns over weak economic data.
"(The inventory report) was clearly a disappointment ... although we are trading much more off of the problems of the broader financial market and debt ceiling", said Bill O'Grady, chief investment strategist at Confluence Investment Management in St. Louis, Missouri.
Japan oil sales seen up 2.2 pct if reactors shut
TOKYO, July 27 (Reuters) - Japan's total oil product sales are expected to rise 2.2 percent in the financial year to next March if local authorities keep nuclear reactors shut after routine maintenance due to safety concerns after Fukushima, the nation's top energy forecaster said on Wednesday.
Under that scenario, sales of thermal fuel to utilities would be expected to rise 138.1 percent to 14.7 million kilolitres (92.5 million barrels) in 2011/12 from 6.2 million kl a year earlier, the Institute of Energy Economics for Japan (IEEJ) said in its latest report.
Ivory Coast oil refinery to boost capacity by 25 pct
July 26 (Reuters) - Ivory Coast's 80,000 barrel-per-day (bpd) refinery plans to boost its capacity by 25 percent in the next decade to 5 million tonnes a year, from 4 million now, its director general Joel Dervain told Reuters on Tuesday.
The SIR refinery, one of the biggest in sub-Saharan Africa, supplies fuel domestically and exports to several West African countries.
Iran may cope with India oil money loss, but no more
DUBAI, July 27 (Reuters) - International sanctions designed to stop Iran's disputed nuclear programme would only really bite if its other big Asian buyers follow India's lead and bow to U.S. pressure to cut the flow of oil money to Tehran.
The Islamic Republic will forego around $45 million a day or a total of $1.4 billion in August -- if it halts around 400,000 barrels per day (bpd) of crude exports to India -- where refiners have run up a $5 billion debt since India's central bank blocked payments to Iran after pressure from Washington.
NATURAL GAS: August natural gas settles flat at expiration
NEW YORK, July 27 (Reuters) - Most U.S. natural gas futures ended slightly lower on Wednesday for a third day, but the front month August contract expired unchanged, underpinned by warmer late week forecasts for the Northeast and Midwest.
"Futures ended (expired) right near cash. It's still hot and tropical activity is picking up, but there's no shortage of gas," said Ed Kennedy, senior vice president at INTL Hencorp Futures in Miami.
EURO COAL: Sep DES trades at $125/T
LONDON, July 27 (Reuters) - Prompt physical coal prices were stable on Wednesday after creeping higher by $1.50 a tonne during the previous three days on the South African strike and firmer oil.
"There are more of the usual players active in the market this week than last week but few trades are going through, liquidity's still very low," one European trader said.
COMMODITIES: Oil tumble, dollar rebound leads broad decline
NEW YORK, July 27 (Reuters) - Commodities fell in thin volumes on Wednesday as the dollar rebounded on uncertainties over U.S. debt talks, with oil leading the decline as U.S. crude stockpiles mounted.
"We think a sharper sell-off in the US equity markets will likely materialize by week's end and climax on Monday if no (debt) agreement is reached, in which case we could see the divergence we are seeing between various markets snap, leading to broad-based declines in all complexes, except perhaps in precious metals and foreign currencies," said Edward Meir, analyst at MF Global in New York.
SINGAPORE, July 28 (Reuters) - Asian stocks fell ahead of a long list of corporate results on Thursday that may shed light on the year's earnings outlook, though the region continued to outperform Wall Street in July.
"Buying on dips in companies with good earnings may continue, but exporters may not fare well for the time being as long as there are concerns about the U.S. economy," said Hideyuki Okoshi, general manager at Chibagin Securities in Tokyo.
Obama to announce new fuel economy standards Friday
WASHINGTON/DETROIT, July 27 (Reuters) - The Obama administration has reached a compromise with automakers on a new fuel economy target for cars and trucks, ending months of negotiations on this pivotal mandate for the auto industry.
Automakers' fleets will now have to average 54.5 miles per gallon by 2025, according to people familiar with the plan.
OIL: Oil falls as US inventories rise, debt talks falter
NEW YORK, July 27 (Reuters) - Oil prices fell on Wednesday as data showed the first release of crude from the U.S. petroleum reserve unexpectedly pushed up domestic inventories last week, adding to concerns over weak economic data.
"(The inventory report) was clearly a disappointment ... although we are trading much more off of the problems of the broader financial market and debt ceiling", said Bill O'Grady, chief investment strategist at Confluence Investment Management in St. Louis, Missouri.
Japan oil sales seen up 2.2 pct if reactors shut
TOKYO, July 27 (Reuters) - Japan's total oil product sales are expected to rise 2.2 percent in the financial year to next March if local authorities keep nuclear reactors shut after routine maintenance due to safety concerns after Fukushima, the nation's top energy forecaster said on Wednesday.
Under that scenario, sales of thermal fuel to utilities would be expected to rise 138.1 percent to 14.7 million kilolitres (92.5 million barrels) in 2011/12 from 6.2 million kl a year earlier, the Institute of Energy Economics for Japan (IEEJ) said in its latest report.
Ivory Coast oil refinery to boost capacity by 25 pct
July 26 (Reuters) - Ivory Coast's 80,000 barrel-per-day (bpd) refinery plans to boost its capacity by 25 percent in the next decade to 5 million tonnes a year, from 4 million now, its director general Joel Dervain told Reuters on Tuesday.
The SIR refinery, one of the biggest in sub-Saharan Africa, supplies fuel domestically and exports to several West African countries.
Iran may cope with India oil money loss, but no more
DUBAI, July 27 (Reuters) - International sanctions designed to stop Iran's disputed nuclear programme would only really bite if its other big Asian buyers follow India's lead and bow to U.S. pressure to cut the flow of oil money to Tehran.
The Islamic Republic will forego around $45 million a day or a total of $1.4 billion in August -- if it halts around 400,000 barrels per day (bpd) of crude exports to India -- where refiners have run up a $5 billion debt since India's central bank blocked payments to Iran after pressure from Washington.
NATURAL GAS: August natural gas settles flat at expiration
NEW YORK, July 27 (Reuters) - Most U.S. natural gas futures ended slightly lower on Wednesday for a third day, but the front month August contract expired unchanged, underpinned by warmer late week forecasts for the Northeast and Midwest.
"Futures ended (expired) right near cash. It's still hot and tropical activity is picking up, but there's no shortage of gas," said Ed Kennedy, senior vice president at INTL Hencorp Futures in Miami.
EURO COAL: Sep DES trades at $125/T
LONDON, July 27 (Reuters) - Prompt physical coal prices were stable on Wednesday after creeping higher by $1.50 a tonne during the previous three days on the South African strike and firmer oil.
"There are more of the usual players active in the market this week than last week but few trades are going through, liquidity's still very low," one European trader said.
COMMODITIES: Oil tumble, dollar rebound leads broad decline
NEW YORK, July 27 (Reuters) - Commodities fell in thin volumes on Wednesday as the dollar rebounded on uncertainties over U.S. debt talks, with oil leading the decline as U.S. crude stockpiles mounted.
"We think a sharper sell-off in the US equity markets will likely materialize by week's end and climax on Monday if no (debt) agreement is reached, in which case we could see the divergence we are seeing between various markets snap, leading to broad-based declines in all complexes, except perhaps in precious metals and foreign currencies," said Edward Meir, analyst at MF Global in New York.
20110728 1115 Local & Global Economic Related News.
Malaysia’s local-currency credit rating was lowered one step by Standard & Poor’s after the company revised its methodology for grading sovereign debt. The long-term localcurrency rating was cut to A from A+, with a stable outlook. That is the fifth-lowest investment grade.
Malaysians' fear of crime has improved overall, from 52.0% in a survey conducted from Nov 2010 to Jan 2011, to 48.9% in a survey in Mar-May 2011, said TNS Research International Malaysia (TNS RI). It had measured indexes in three areas, namely fear of crime related to robbery and burglary, vehicle- and violence-related crime. (Bernama)
The cabinet decided to add another National Key Result Area (NKRA) to the list of six to make it seven altogether. PM Datuk Seri Najib Tun Razak said the new NKRA dealt with the rising cost of living. The effort covers the main issues that affect the rakyat and not exclusively food, but also other things that have direct bearing on the people’s well-being.
Malaysian companies have registered a potential sales of more than RM22m at the threeday global semiconductor show, SEMICON West 2011, exceeding expectations and beating the 2008 show figures (RM6.4m). Products and services on display included precision machine parts and components, test probes, test contactor solutions, Automatic Test Equipment (ATE) for semiconductor and electronic components and Test & Measurement Instrument (T&MI) that is used in integrated circuit (IC) design and manufacturing. (Bernama)
Six Bumiputera companies, with a combined market capitalisation of close to RM1bn, have been listed on Bursa Malaysia under the government's Skim Jejak Jaya Bumiputera (SJJB), said Deputy Finance Minister Datuk Dr Awang Adek Hussin. "We have 20 companies in the pipeline to be listed over the next two years. We can get about 10 companies by this year and next year," he noted. The remaining companies to be listed under the scheme were involved in various sectors including information technology (IT), biotech, manufacturing as well as oil and gas, he added. (Bernama)
The Bank of Thailand said inflation risks exceed threats to economic expansion and signaled planned spending by the nation’s incoming leader, Yingluck Shinawatra, may add to price pressures. The monetary policy committee “judged that the risks to inflation outweighed the risk to growth especially in light of continued fiscal stimulus, which may add to inflationary pressure,” according to the minutes of the July 13 meeting released on the central bank’s website. (Bloomberg)
South Korea’s economy expanded at a slower pace of 0.8% qoq in 2Q (+1.3% in 1Q) as a stronger won and Europe’s fiscal crisis weighed on exports. That matched the median estimate. The economy grew 3.4% yoy, below estimates of a 3.5% expansion.(Bloomberg)
China: Industrial profits jump 29% in first half on year
Chinese industrial companies’ profits grew at a faster pace even after the government raised interest rates and tightened credit to counter inflation. Net income climbed 28.7 percent in the first six months to CNY 2.41trn (USD 374bn) from a year earlier, the National Bureau of Statistics said on its website today. That compares with a 27.9% gain in January through May. Climbing profits for companies such as Anhui Conch Cement Co, the nation’s biggest cement producer, fuel investment that is underpinning the economy’s expansion. The International Monetary Fund forecasts that China’s gross domestic product will rise 9.6% this year, also bolstered by a government plan to build millions of low-cost homes. (Bloomberg)
Japan: Targets JPY10trn for third post-quake package
Japan will spend about JPY 10trn (USD129bn) in a third disaster recovery package to be put together after Prime Minister Naoto Kan fulfills a pledge to resign, the ruling party’s No. 2 official said. The government will fund the extra budget with deficit bonds that will be repaid over a period of five to 10 years with tax increases, Katsuya Okada, secretary-general of the Democratic Party of Japan, told reporters in Tokyo. “The responsibility for compiling the third supplementary budget and getting it passed through parliament will belong to the next prime minister,” Okada said. While the timing of the decision is up to Kan, it “won’t be too long” before he resigns, Okada added. (Bloomberg)
Australia: Consumer-price advance sends currency to record
Australian consumer prices gained more than economists forecast last quarter on higher costs for food, clothing and health care, sending the nation’s currency to a record-high against the USD. The consumer price index rose 0.9% from the previous three months, the Bureau of Statistics said in Sydney. That was more than the 0.7% median estimate in a Bloomberg News survey of 25 economists. Prices were 3.6% higher than a year earlier, compared with the median forecast of 3.4%. The report reflects lingering effects of floods in the nation’s northeast that shut mines and wiped out crops and were followed by a cyclone that tore through sugar- and banana- producing areas. Reserve Bank of Australia Governor Glenn Stevens, who has paused interest-rate increases for the longest stretch since 2007 to gauge fallout from Europe’s debt crisis and weaker local data, this week said the inflation data will help determine the trajectory of monetary policy. (Bloomberg)
EU: Rating companies find spines to savage sovereigns: Euro credit
Rating companies, lambasted by policy makers for exacerbating the credit crisis with lax grades, are slashing their assessments of government creditworthiness even as they face increased regulation. Greece, Ireland and Portugal have all had at least one rating cut to junk in recent months. Now, Moody’s Investors Service, Standard & Poor’s and Fitch Ratings are poised to remove the US’s top grade as lawmakers bicker over budget cuts before raising the nation’s debt ceiling to avert default. Moody’s four-level downgrade of Portugal on 5 July prompted calls from German Finance Minister Wolfgang Schaeuble to “curb the influence of the rating companies.” Ireland’s descent to junk on 12 July was “incomprehensible,” said European Commission President Jose Barroso. (Bloomberg)
US: Mortgage applications fell 5% last week on refinancing
Mortgage applications in the US dropped last week, led by a decrease in refinancing as borrowing costs rose. The Mortgage Bankers Association’s index declined 5% in the period ended 22 July from the prior week, the Washington- based group reported. The group’s refinancing measure decreased 5.5% from the prior week, while the purchase gauge fell 3.8%, taking it to the lowest level since February. An excess of distressed properties may be driving down home prices, restraining improvements in the housing market. Unemployment above 9% could also be preventing a sustained recovery. (Bloomberg)
US: Orders for US durable goods fall in sign investment to cool
Orders for US durable goods unexpectedly dropped in June, raising the risk that a slowdown in business investment will weigh on the world’s largest economy in the second half of the year. Bookings for goods meant to last at least three years fell 2.1% after a 1.9% gain the prior month that was smaller than last reported, the Commerce Department said. Demand for business equipment, including machinery and computers, also dropped. Manufacturers face a slowdown in consumer spending just as they are poised to rebound from the parts shortages caused by Japan’s earthquake, indicating production may keep cooling. Companies are also cutting back on hiring, which may further temper household demand. (Bloomberg)
US stocks fall on debt concern, drop in durable goods orders
US stocks fell, dragging the Standard & Poor’s 500 Index down the most in almost two months, as lawmakers indicated they were no closer to reaching a compromise on the federal debt limit. Technology and industrial stocks led declines among 10 S&P 500 groups. Caterpillar Inc. and General Electric Co. decreased more than 2.4% after a government report showed orders for durable goods unexpectedly decreased. Corning Inc. dropped 7.2% after reducing its forecast for glass demand amid lower television-sales projections. Amazon.com Inc. rallied 3.9% after its Kindle e-reader and digital-media services helped second-quarter results beat analysts’ estimates. The S&P 500 slipped 2%, its biggest decline since 1 June, to 1,304.89 at 4pm in New York. The Dow Jones Industrial Average retreated 198.75 points, or 1.6%, to 12,302.55. Treasury yields, which dropped yesterday on speculation lawmakers would reach an accord on the nation’s debt ceiling, rose today as the political stalemate continued. (Bloomberg)
New orders for big-ticket US manufactured goods fell sharply in Jun as demand weakened for aircraft and defense items, the Commerce Department said. Durable goods orders dropped 2.1% mom in Jun (+1.9% in May), to their lowest level since Feb, according to the department's seasonally adjusted data. Economists expected a 0.5% rise in orders in Jun. (AFP)
- The foreign-currency rating was affirmed at A-, one step below the local debt.
- Malaysia’s credit rating is constrained by a “moderately weak fiscal and debt profile” for its category. The country’s increasing subsidies have led to a “slow pace of fiscal consolidation” and the government’s plans to change the system and introduce a goods and service tax may be gradual given the political implications, S&P said. (BT)
Malaysians' fear of crime has improved overall, from 52.0% in a survey conducted from Nov 2010 to Jan 2011, to 48.9% in a survey in Mar-May 2011, said TNS Research International Malaysia (TNS RI). It had measured indexes in three areas, namely fear of crime related to robbery and burglary, vehicle- and violence-related crime. (Bernama)
The cabinet decided to add another National Key Result Area (NKRA) to the list of six to make it seven altogether. PM Datuk Seri Najib Tun Razak said the new NKRA dealt with the rising cost of living. The effort covers the main issues that affect the rakyat and not exclusively food, but also other things that have direct bearing on the people’s well-being.
- “We may also look at the supply chain to see how we can liberalise it to allow more food imports. Another possible plan was to use idle land for food production,” he said.
- The existing measures such as price control mechanisms and subsidies for most essential items would continue. Initiatives such as the 1Malaysia Clinic and 1Malaysia Shop would be expanded. (Bernama, The Star)
Malaysian companies have registered a potential sales of more than RM22m at the threeday global semiconductor show, SEMICON West 2011, exceeding expectations and beating the 2008 show figures (RM6.4m). Products and services on display included precision machine parts and components, test probes, test contactor solutions, Automatic Test Equipment (ATE) for semiconductor and electronic components and Test & Measurement Instrument (T&MI) that is used in integrated circuit (IC) design and manufacturing. (Bernama)
Six Bumiputera companies, with a combined market capitalisation of close to RM1bn, have been listed on Bursa Malaysia under the government's Skim Jejak Jaya Bumiputera (SJJB), said Deputy Finance Minister Datuk Dr Awang Adek Hussin. "We have 20 companies in the pipeline to be listed over the next two years. We can get about 10 companies by this year and next year," he noted. The remaining companies to be listed under the scheme were involved in various sectors including information technology (IT), biotech, manufacturing as well as oil and gas, he added. (Bernama)
The Bank of Thailand said inflation risks exceed threats to economic expansion and signaled planned spending by the nation’s incoming leader, Yingluck Shinawatra, may add to price pressures. The monetary policy committee “judged that the risks to inflation outweighed the risk to growth especially in light of continued fiscal stimulus, which may add to inflationary pressure,” according to the minutes of the July 13 meeting released on the central bank’s website. (Bloomberg)
South Korea’s economy expanded at a slower pace of 0.8% qoq in 2Q (+1.3% in 1Q) as a stronger won and Europe’s fiscal crisis weighed on exports. That matched the median estimate. The economy grew 3.4% yoy, below estimates of a 3.5% expansion.(Bloomberg)
China: Industrial profits jump 29% in first half on year
Chinese industrial companies’ profits grew at a faster pace even after the government raised interest rates and tightened credit to counter inflation. Net income climbed 28.7 percent in the first six months to CNY 2.41trn (USD 374bn) from a year earlier, the National Bureau of Statistics said on its website today. That compares with a 27.9% gain in January through May. Climbing profits for companies such as Anhui Conch Cement Co, the nation’s biggest cement producer, fuel investment that is underpinning the economy’s expansion. The International Monetary Fund forecasts that China’s gross domestic product will rise 9.6% this year, also bolstered by a government plan to build millions of low-cost homes. (Bloomberg)
Japan: Targets JPY10trn for third post-quake package
Japan will spend about JPY 10trn (USD129bn) in a third disaster recovery package to be put together after Prime Minister Naoto Kan fulfills a pledge to resign, the ruling party’s No. 2 official said. The government will fund the extra budget with deficit bonds that will be repaid over a period of five to 10 years with tax increases, Katsuya Okada, secretary-general of the Democratic Party of Japan, told reporters in Tokyo. “The responsibility for compiling the third supplementary budget and getting it passed through parliament will belong to the next prime minister,” Okada said. While the timing of the decision is up to Kan, it “won’t be too long” before he resigns, Okada added. (Bloomberg)
Australia: Consumer-price advance sends currency to record
Australian consumer prices gained more than economists forecast last quarter on higher costs for food, clothing and health care, sending the nation’s currency to a record-high against the USD. The consumer price index rose 0.9% from the previous three months, the Bureau of Statistics said in Sydney. That was more than the 0.7% median estimate in a Bloomberg News survey of 25 economists. Prices were 3.6% higher than a year earlier, compared with the median forecast of 3.4%. The report reflects lingering effects of floods in the nation’s northeast that shut mines and wiped out crops and were followed by a cyclone that tore through sugar- and banana- producing areas. Reserve Bank of Australia Governor Glenn Stevens, who has paused interest-rate increases for the longest stretch since 2007 to gauge fallout from Europe’s debt crisis and weaker local data, this week said the inflation data will help determine the trajectory of monetary policy. (Bloomberg)
EU: Rating companies find spines to savage sovereigns: Euro credit
Rating companies, lambasted by policy makers for exacerbating the credit crisis with lax grades, are slashing their assessments of government creditworthiness even as they face increased regulation. Greece, Ireland and Portugal have all had at least one rating cut to junk in recent months. Now, Moody’s Investors Service, Standard & Poor’s and Fitch Ratings are poised to remove the US’s top grade as lawmakers bicker over budget cuts before raising the nation’s debt ceiling to avert default. Moody’s four-level downgrade of Portugal on 5 July prompted calls from German Finance Minister Wolfgang Schaeuble to “curb the influence of the rating companies.” Ireland’s descent to junk on 12 July was “incomprehensible,” said European Commission President Jose Barroso. (Bloomberg)
US: Mortgage applications fell 5% last week on refinancing
Mortgage applications in the US dropped last week, led by a decrease in refinancing as borrowing costs rose. The Mortgage Bankers Association’s index declined 5% in the period ended 22 July from the prior week, the Washington- based group reported. The group’s refinancing measure decreased 5.5% from the prior week, while the purchase gauge fell 3.8%, taking it to the lowest level since February. An excess of distressed properties may be driving down home prices, restraining improvements in the housing market. Unemployment above 9% could also be preventing a sustained recovery. (Bloomberg)
US: Orders for US durable goods fall in sign investment to cool
Orders for US durable goods unexpectedly dropped in June, raising the risk that a slowdown in business investment will weigh on the world’s largest economy in the second half of the year. Bookings for goods meant to last at least three years fell 2.1% after a 1.9% gain the prior month that was smaller than last reported, the Commerce Department said. Demand for business equipment, including machinery and computers, also dropped. Manufacturers face a slowdown in consumer spending just as they are poised to rebound from the parts shortages caused by Japan’s earthquake, indicating production may keep cooling. Companies are also cutting back on hiring, which may further temper household demand. (Bloomberg)
US stocks fall on debt concern, drop in durable goods orders
US stocks fell, dragging the Standard & Poor’s 500 Index down the most in almost two months, as lawmakers indicated they were no closer to reaching a compromise on the federal debt limit. Technology and industrial stocks led declines among 10 S&P 500 groups. Caterpillar Inc. and General Electric Co. decreased more than 2.4% after a government report showed orders for durable goods unexpectedly decreased. Corning Inc. dropped 7.2% after reducing its forecast for glass demand amid lower television-sales projections. Amazon.com Inc. rallied 3.9% after its Kindle e-reader and digital-media services helped second-quarter results beat analysts’ estimates. The S&P 500 slipped 2%, its biggest decline since 1 June, to 1,304.89 at 4pm in New York. The Dow Jones Industrial Average retreated 198.75 points, or 1.6%, to 12,302.55. Treasury yields, which dropped yesterday on speculation lawmakers would reach an accord on the nation’s debt ceiling, rose today as the political stalemate continued. (Bloomberg)
New orders for big-ticket US manufactured goods fell sharply in Jun as demand weakened for aircraft and defense items, the Commerce Department said. Durable goods orders dropped 2.1% mom in Jun (+1.9% in May), to their lowest level since Feb, according to the department's seasonally adjusted data. Economists expected a 0.5% rise in orders in Jun. (AFP)
20110728 1113 Malaysia Corporate Related News.
KLCI chart reading : downside biased.
Petronas said no deal with joint venture
Petroliam Nasional Bhd (Petronas) has disputed claims by a Malaysian-Iranian-Chinese (MIC) joint venture that they are poised to be awarded a contract to develop a marginal oil field. Earlier this week, it was reported that China's largest petroleum refiner Sinopec Petroleum Services (Sinopec) was poised to take a major stake in a planned RM2.06bn venture to help develop a Petronas marginal oil field located off the coast of Terengganu. At a press conference held on Monday, it was disclosed that under the deal, Sinopec will hold a 40% stake in the consortium, while Sabio Oil & Gas SB (SOG), a unit of Sabio Technology Bhd (STB), and Iranian group International Oil and Design and Construction SB (IODC) will have 30% stakes, respectively. (BT)
Japan's Proto buys MTM Multimedia for RM110m
Japan's Proto Corp is buying MTM Multimedia SB, publisher of Motor Trader and Autocar Asean magazines, for RM109.67m. Proto announced on the Tokyo Stock Exchange yesterday that it is acquiring all 500,000 MTM shares from two individuals. MTM had set a new trend in the Malaysian new and used car classifieds market through Motor Trader, when it started in 1998. The magazine offered the placement of a colour photo of the vehicle that is being put up for sale alongside its relevant details. This opened up a whole new approach to selling new and used cars. (BT)
Lion Forest eyes plantation land
Lion Forest Industries (LFIB) intends to grow its plantation business by acquiring land in Southeast Asian countries to undertake the cultivation of oil palm, rubber and other industrial crops. In a statement to Bursa Malaysia yesterday, LFIB said it was eyeing assets in Indonesia, Cambodia, Thailand, Vietnam, Myanmar and Laos. For a start, LFIB is acquiring close to 10,000ha of plantation land in Cambodia for USD3.9m (RM11.5m) cash from Cambodian government. The purchase will grant LFIB the concession rights for these assets for a period of more than 70 years. (Financial Daily)
Insas provides Ho Hup with RM75m loans
Insas Bhd unit Insas Credit & Leasing SB has extended a RM75m financing facility to Ho Hup construction Bhd subsidiary that will help to lift the property developer out of its financial stress. Interestingly, Insas, which is controlled by Datuk Thong Kok Khee, has emerged as substantial shareholder in IT-based firm Formis Resources, which recently acquired a 20.59% stake in Ho Hup. In an announcement to Bursa Malaysia yesterday, Ho Hup said the company and its 70%-owned unit Bukit Jalil Development SB had accepted the RM75m term loan facility from Insas Credit. The funds will be utilized to redeem and /or refinance a loan from CIMB Bank. (Financial Daily)
AIC, Jotech and AutoV set to merge via share swap
The proposed merger of AIC Corp Bhd, Jotech Holdings Bhd and AutoV Corp Bhd will be done via a share swap that would be priced at a slight premium over the last traded market prices of all three companies, a source close to the deal said. “Shareholders of all three companies will receive shares in a new company that will assume the listed status of one of the three companies, in exchange for their existing shares,” the source explained. Another key aspect of the deal is that Datuk Goh Tian Chuan, who has stakes in all the three companies, will not be selling out but will emerge as a major shareholder of the new company, named Temasek Formation Holdings Bhd (which is not related to Singapore's Temasek Holdings). (StarBiz)
SP Setia unit ends China deal
SP Setia’s subsidiary, Setia (Hangzhou) Development Co Ltd, and Hangzhou Ju Shen Construction Engineering Ltd have terminated their joint-venture (JV) contract for the development of a mixed property project on 25 acres in Zhejiang, China. SP Setia said in a statement to Bursa Malaysia that the conditions precedent set out in the JV contract had not been met as at Wednesday. It was announced earlier that the JV contract was conditional on getting the approval from China's Ministry of Commerce or the approval authority that it entrusted. The first phase of the project, comprising commercial and residential units over five acres, was said to have a gross development value of RM500m. The signing of the contract with Hangzhou Ju Shen to form a limited liability JV company to develop and operate the mixed property development in the growth corridor of XiaoShan, Hangzhou, took place in October 2009. (StarBiz)
CIMB Group Holdings will next week open a representative office in Mumbai, India, and form a working partnership with the Kotak Mahindra Group, one of the country's top banking and financial services group, according to a source. It is also expected to form an alliance with some partners in Sri Lanka to tap on the burgeoning investment banking opportunities in the island state.
- Group CEO Datuk Seri Nazir Razak said recently that CIMB's strategy for the India, China and Middle East regions would be to form working partnerhips with established players there, rather than acquire equity stakes. (BT)
Property prices in Nusajaya in Iskandar Malaysia, Johor, are expected to rise further as UEM Land Holdings and Iskandar Investment Bhd (IIB) plan to transform the area into a "smart+connected" community. In the last five years, property prices had increased by 10- 30% in East Ledang, Nusa Idaman and Horizon Hills in Nusajaya, said UEM GM Zamri Ibrahim.
- He said houses sold at RM300,000-plus in Nusa Idaman in 2008 are now selling at more than RM400,000 each. Those launched in East Ledang around the same year have seen price increases of RM500,000 to above RM600,000.
- UEM and IIB yesterday signed a collaboration agreement with network system provider Cisco to develop an information and communications technology (ICT) and services smart city masterplan for Nusajaya. (BT)
Two leading mobile operators, Vodafone Essar and Axiata’s Indian associate, Idea Cellular, are understood to have increased pre-paid tariffs by up to 20 per cent, in line with the recent move by SingTel’s Indian associate Bharti. According to industry sources, the tariffs were increased few days ago but the details of new tariff could not be obtained. (Economic Times of India)
Ingress Corporation has secured contracts worth RM388m, its executive vice-chairman Datuk Rameli Musa announced. The contracts, secured by the group's power engineering and projects division, are expected to contribute to a better performance anticipated by the group for its current financial year ending Jan 31, 2012. (Bernama, Financial Daily)
Ingress Corp has high hopes of participating in the manufacture of components for Proton Holdings' global small car. "We are interested and I think we have high chance of being invited to participate. But we have not been informed of anything yet," said executive vice chairman, Datuk Rameli Musa. (Malaysian Reserve)
Ingress Corp has submitted tender for several projects including the Ampang line light rail transit (MRT) extension and RM1.5bn worth of jobs from Keretapi Tanah Melayu (KTM). Executive vice-chairman cum CEO Datuk Rameli Musa said Ingress had submitted the tender for KTMB works in March and the results would be announced in September. (Starbiz)
Syarikat Prasarana Negara Bhd has successfully priced its RM2bn 10-year and 15-year Islamic medium term notes or sukuk issued yesterday, under its RM4bn nominal value sukuk programme guaranteed by the Government.
- The sukuk programme is mainly to part-finance the Kelana Jaya and Ampang LRT Line Extension Project (LEP) and other infrastructure improvement initiatives by Prasarana. The sukuk carries a semi-annual profit rate of 4.15% per annum for the RM800m 10-year tranche and 4.35% per annum for the RM1.2bn 15-year tranche.
- Due to the overwhelming response from investors, the sukuk was priced at the tightest end of the final price guidance which demonstrates strong investor appetite and ample liquidity in the market for high grade papers, reflected primarily by the strength of the government guarantee for it. (Bernama)
Japanese steel mills in Malaysia could shift their operations elsewhere if Megasteel Sdn Bhd gets it way in petitioning to impose additional safeguard measures for imports of certain hot-rolled coils (HRC). The Ministry of International Trade and Industry (Miti) is expected to decide on the issue by 29 July but has the right to delay its decision by one more month. • It is understood that foreign owned steel players are far from happy about the situation and are prepared to refer the matter to the World Trade Organisation.
- Sumiputeh Steel Centre Sdn Bhd MD H Hank Yoshioka said, “Internationally, steel import duties are 0-5%. The current 25% imposed in Malaysia is already higher than normal and if we need to pay the additional safeguard duty of 35% we will be out of business.”
- The Malaysian Iron and Steel Industry Federation (Misif) president Chow Chong Long said the additional 35% duty will affect a wide range of industries including the electrical and electronics, automotive as well as other export based manufactures. (Malaysian Reserve, Financial Daily)
Deputy Transport Minister Datuk Abdul Rahim Bakri is confident that the ongoing Transport Ministers meeting of the Brunei-Indonesia-Malaysia-Filipina-East Asean Growth Area (BIMP-EAGA), at Cagayan De Oro in the Philippines, will result in some form of regional cooperation in the area of transportation and communications. He said cooperation in the sector would be necessary and timely as it would be in line with present efforts to create an Asean community by 2015.
- Abdul Rahim said the growth triangle could become a driving force to establish cooperation and facilitating the venture into the various economic areas of BIMP EAGA which has a market potential of 60m people where transportation and communications were the major drivers. Abdul Rahim also announced that Kota Kinabalu, Sabah has been elected as the host for next year's BIMP EAGA Transport Ministers meeting. (Bernama)
Malaysia Airlines (MAS) has restructured its sales unit following the departure of its senior general manager of sales and marketing Datuk Bernard Francis. MAS has relocated all heads of regional sales to its headquarters in Subang to ensure better coordination and quicker response in terms of strategising. “We have restructured (the sales department) and that position does not exist (anymore),” Tengku Datuk Azmil Zahruddin said.
- He added that “we have a strategy in place (for sales)” but he did not elaborate. Azmil is also the commercial director for the airline, a position he said he had held for the past year. (Star Biz)
Chery Alado, which holds the rights to import and sell Chery cars, plans to invest up to RM300m over the next five years on a new assembly plant in the country. "Should everything go according to plan, the plant would make Malaysia the Southeast Asian hub for Chery's right hand drive models," said CEO Paul Ng.
- Currently, the company sells three Chery models - Eastar, Tiggo and A5. The company, which sold 3,200 units of vehicles last year, aims to grow its sales by at least 20% to 3,800-3,900 units this year. (BT)
Favelle Favco Bhd received letters of intent worth RM79.3m for the supply of offshore cranes and winches. The purchase orders were given to Favco’s units, namely Favelle Favco Cranes (M) Sdn Bhd, Favelle Favco Cranes Pty Ltd, Favelle Favco Cranes Pte Ltd and Favelle Favco Winches Pte Ltd. (BT)
Vale officially opened the HQ of its subsidiary Vale Malaysia Manufacturing in Perak where the company intends to create an industrial hub comprising of a major iron ore distribution centre and other related industries in Teluk Rubiah. The project will take three years to complete. Once the distribution centre is operational, iron ore from Brazil will be transported in Valemax vessels of 400k deadweight tonnage to Teluk Rubiah. From there the blended ore will be distributed to customers in the Asia-Pacific region such as China, Japan, Australia and also Malaysia. (Malaysian Reserve)
Admuda Sdn Bhd has signed an MOU with CGS International (Chongqing) Co Ltd to build a RM160m sugar refinery plant in Kuching. Admuda director Datuk Raja Sulaiman Raja Sharif said the new plant would be the first sugar refinery in Sarawak to cater to sugar demand in Sabah and Sarawak. He said, “The refinery shall have a minimum production capacity of 300 mt per day with the anticipatory expansion capability. The refinery should be completed and delivered to us within 18-24 months and we expect to generate revenue of RM260-270m in the first year of operation.” (Star Biz)
Deputy Transport Minister Datuk Abdul Rahim Bakri is confident that the ongoing Transport Ministers meeting of the Brunei-Indonesia-Malaysia-Filipina-East Asean Growth Area (BIMP-EAGA), at Cagayan De Oro in the Philippines, will result in some form of regional cooperation in the area of transportation and communications. He said cooperation in the sector would be necessary and timely as it would be in line with present efforts to create an Asean community by 2015.
- Abdul Rahim said the growth triangle could become a driving force to establish cooperation and facilitating the venture into the various economic areas of BIMP EAGA which has a market potential of 60m people where transportation and communications were the major drivers. Abdul Rahim also announced that Kota Kinabalu, Sabah has been elected as the host for next year's BIMP EAGA Transport Ministers meeting. (Bernama)
20110728 1054 Renewable Energy Related News.
EDP RENEWABLES H1 NET PROFIT MORE THAN DOUBLES
LISBON, July 27 (Reuters) - Portugal's wind power generator EDP Renewables on Wednesday posted a 109 percent rise in first-half net profit, to beat market expectations, after an increase in output and smaller amortisations.
EDPR, the world's fourth-largest wind power company and a unit of Energias de Portugal , said its net profit in January-June totaled 90 million euros ($130.3 million).
ACCIONA H1 BENEFITS FROM STRONG ENERGY BUSINESS
MADRID, July 27 (Reuters) - Spanish energy and construction conglomerate Acciona reported firm growth in first half core profit on Wednesday as strength at the group's renewable energy business offset weak real estate and services.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 19.4 percent to 631 million euros ($913 million), beating a forecast for 610 million euros from a Reuters poll of eight analysts.
Q+A-HOW IS JAPAN'S RECONSTRUCTION PLAN SHAPING UP?
TOKYO, July 27 (Reuters) - Japan plans additional spending of 13 trillion yen ($166 billion) for rebuilding from the world's costliest natural disaster, hoping to spread the spending over five to 10 years to build roads and seawalls and to boost the use of renewable energy.
But analysts worry there may be a substantial delay before reconstruction shifts into high gear as a political deadlock heightens four months after the devastating March 11 earthquake and tsunami, which also triggered a nuclear crisis.
CALIFORNIA'S BROWN SEEKS COOKIE CUTTER SOLAR PERMITS
LOS ANGELES, July 25 (Reuters) - California Governor Jerry Brown on Monday said he wants to push the state's localities to adopt a uniform solar panel ordinance, providing a standard model that would ease the process by which homeowners install solar panels on their rooftops.
"Any time you do something with your house over a certain minor dollar amount, you're supposed to get a permit," Brown said. "So that could take a cookie cutter ordinance."
SUNPOWER TO POST 2ND-QUARTER LOSS, SHARES DIVE
LOS ANGELES, July 25 (Reuters) - SunPower Corp warned on Monday that it lost money in the second quarter because of subsidy cuts in Italy and one-time charges for an inventory writedown, contract cancellations and its strategy of shifting panel sales to areas of greater demand.
The company's shares fell 7.1 percent following the announcement.
DUPONT BUYS SOLAR TECH COMPANY INNOVALIGHT
LOS ANGELES, July 25 (Reuters) - Chemical company DuPont said on Monday it bought solar technology start-up Innovalight Inc in a move to help double sales to the solar industry to $2 billion by 2014.
Financial terms of the deal were not disclosed.
BP SOLAR TO STOP PANEL SALES, FOCUS ON PROJECTS
LOS ANGELES, July 21 (Reuters) - BP Solar is closing its U.S. manufacturing facility and will refocus is business on developing solar power projects rather than making panels for them, a company spokesman said on Thursday.
The Frederick, Maryland, facility had not been producing solar modules since last year, yet 80 employees remained at the office. Some of those employees will be offered positions in Houston, where BP Solar's headquarters moved less than a year ago from San Francisco.
FOTOWATIO SELLS 30 MW ITALY SOLAR FARMS TO MUNICH RE
MILAN, July 20 (Reuters) - Spain's Fotowatio Renewable Ventures has sold four solar power generation plants in Italy with a total capacity of 30 megawatts to insurance group Munich Re , the Spanish company said on Wednesday.
Munich Re, through its asset management arm MEAG, has agreed to buy 100 percent of the assets which would still be managed by Fotowatio's Italian unit, the company said in a statement. It did not disclose financial details of the deal.
LISBON, July 27 (Reuters) - Portugal's wind power generator EDP Renewables on Wednesday posted a 109 percent rise in first-half net profit, to beat market expectations, after an increase in output and smaller amortisations.
EDPR, the world's fourth-largest wind power company and a unit of Energias de Portugal , said its net profit in January-June totaled 90 million euros ($130.3 million).
ACCIONA H1 BENEFITS FROM STRONG ENERGY BUSINESS
MADRID, July 27 (Reuters) - Spanish energy and construction conglomerate Acciona reported firm growth in first half core profit on Wednesday as strength at the group's renewable energy business offset weak real estate and services.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 19.4 percent to 631 million euros ($913 million), beating a forecast for 610 million euros from a Reuters poll of eight analysts.
Q+A-HOW IS JAPAN'S RECONSTRUCTION PLAN SHAPING UP?
TOKYO, July 27 (Reuters) - Japan plans additional spending of 13 trillion yen ($166 billion) for rebuilding from the world's costliest natural disaster, hoping to spread the spending over five to 10 years to build roads and seawalls and to boost the use of renewable energy.
But analysts worry there may be a substantial delay before reconstruction shifts into high gear as a political deadlock heightens four months after the devastating March 11 earthquake and tsunami, which also triggered a nuclear crisis.
CALIFORNIA'S BROWN SEEKS COOKIE CUTTER SOLAR PERMITS
LOS ANGELES, July 25 (Reuters) - California Governor Jerry Brown on Monday said he wants to push the state's localities to adopt a uniform solar panel ordinance, providing a standard model that would ease the process by which homeowners install solar panels on their rooftops.
"Any time you do something with your house over a certain minor dollar amount, you're supposed to get a permit," Brown said. "So that could take a cookie cutter ordinance."
SUNPOWER TO POST 2ND-QUARTER LOSS, SHARES DIVE
LOS ANGELES, July 25 (Reuters) - SunPower Corp warned on Monday that it lost money in the second quarter because of subsidy cuts in Italy and one-time charges for an inventory writedown, contract cancellations and its strategy of shifting panel sales to areas of greater demand.
The company's shares fell 7.1 percent following the announcement.
DUPONT BUYS SOLAR TECH COMPANY INNOVALIGHT
LOS ANGELES, July 25 (Reuters) - Chemical company DuPont said on Monday it bought solar technology start-up Innovalight Inc in a move to help double sales to the solar industry to $2 billion by 2014.
Financial terms of the deal were not disclosed.
BP SOLAR TO STOP PANEL SALES, FOCUS ON PROJECTS
LOS ANGELES, July 21 (Reuters) - BP Solar is closing its U.S. manufacturing facility and will refocus is business on developing solar power projects rather than making panels for them, a company spokesman said on Thursday.
The Frederick, Maryland, facility had not been producing solar modules since last year, yet 80 employees remained at the office. Some of those employees will be offered positions in Houston, where BP Solar's headquarters moved less than a year ago from San Francisco.
FOTOWATIO SELLS 30 MW ITALY SOLAR FARMS TO MUNICH RE
MILAN, July 20 (Reuters) - Spain's Fotowatio Renewable Ventures has sold four solar power generation plants in Italy with a total capacity of 30 megawatts to insurance group Munich Re , the Spanish company said on Wednesday.
Munich Re, through its asset management arm MEAG, has agreed to buy 100 percent of the assets which would still be managed by Fotowatio's Italian unit, the company said in a statement. It did not disclose financial details of the deal.
20110728 1052 Biofuels Related News.
BRAZIL CANE CRUSH GAINS ON LAST SEASON, OUTLOOK DIM
BRASILIA, July 26 (Reuters) - Crushing of cane in Brazil and production of sugar and ethanol made from it are catching up with the 2010 season, data from cane industry association Unica showed on Tuesday, but the crop may soon run out of puff.
The crush totaled 217.4 million tonnes from the start of the season through July 16. That was 15 percent less than by the same time last season but the gap had narrowed from a lag of 18 percent at the start of July.
U.S. CELLULOSIC ETHANOL INDUSTRY STRUGGLES TO TAKE OFF
WASHINGTON, July 25 (Reuters) - The great promise of a car fuel made from cheap, clean-burning prairie grass or wood chips -- and not from expensive corn that feeds the world -- is more mirage than reality.
Despite years of research, testing and some hype, the next-generation ethanol industry is far from the commercial success envisioned by President George W. Bush in 2006, when he pledged so-called cellulosic biofuels would be "practical and competitive" by 2012.
US ETHANOL PRODUCTION CLIMBS MODESTLY, STOCKS GAIN
CHICAGO, July 20 (Reuters) - U.S. ethanol production posted a modest gain in the latest reporting week, rebounding from more than a two-month low during the previous period, the Energy Information Administration said in its weekly petroleum report on Wednesday.
Ethanol output rose to 873,000 barrels per day (bpd) for the week ended July 15, which was up 1,000 bpd from the previous week and 4.4 percent higher than the 836,000 bpd produced in the same week last year, EIA said.
IDLE GERMAN BIODIESEL PLANT RESTARTS UNDER NEW OWNERS
HAMBURG, July 22 (Reuters) - The German biodiesel plant previously operated by insolvent green fuels producer EOP Biodiesel AG will restart production on Monday, its new owners said on Friday.
The company German Biofuels GmbH in March bought EOP's 132,000 tonnes annual capacity biodiesel plant in Pritzwalk in eastern Germany which has been idle since October 2010.
COPERSUCAR DELAYS BRAZIL IPO AS CONDITIONS WORSEN
SAO PAULO, July 19 (Reuters) - Copersucar, Brazil's largest sugar and ethanol trader, on Tuesday delayed a plan to sell shares for the first time, a source told Reuters, signaling that debt woes abroad are spoiling appetite for equity offerings in Latin America's biggest economy.
The source, who has knowledge of the situation but declined to be identified because the transaction is still in the works, did not specify when the initial public offering plans would be resumed. Under Brazilian law, companies can resume IPO plans within 60 days if basic terms of the deals are not modified.
CATHAY INDUSTRIAL BIOTECH FILES FOR IPO OF UP TO $200 MLN
July 19 (Reuters) - China's Cathay Industrial Biotech Ltd filed with U.S. regulators on Tuesday to raise up to $200 million in an initial public offering of American Depositary Shares.
In a filing with the U.S. Securities and Exchange Commission, the company said Morgan Stanley, Deutsche Bank Securities and Jefferies would be underwriting the offering.
EU GETS TOUGH ON DIRTY BIOFUEL, PLEDGES MORE ACTION
BRUSSELS, July 19 (Reuters) - Europe's energy chief announced seven green certification schemes for biofuels on Tuesday and promised in future to tackle the unwanted side-effects of turning food into fuel.
Guenther Oettinger said biofuels' indirect impacts were dangerous for the planet's carbon balance and food supply.
BRASILIA, July 26 (Reuters) - Crushing of cane in Brazil and production of sugar and ethanol made from it are catching up with the 2010 season, data from cane industry association Unica showed on Tuesday, but the crop may soon run out of puff.
The crush totaled 217.4 million tonnes from the start of the season through July 16. That was 15 percent less than by the same time last season but the gap had narrowed from a lag of 18 percent at the start of July.
U.S. CELLULOSIC ETHANOL INDUSTRY STRUGGLES TO TAKE OFF
WASHINGTON, July 25 (Reuters) - The great promise of a car fuel made from cheap, clean-burning prairie grass or wood chips -- and not from expensive corn that feeds the world -- is more mirage than reality.
Despite years of research, testing and some hype, the next-generation ethanol industry is far from the commercial success envisioned by President George W. Bush in 2006, when he pledged so-called cellulosic biofuels would be "practical and competitive" by 2012.
US ETHANOL PRODUCTION CLIMBS MODESTLY, STOCKS GAIN
CHICAGO, July 20 (Reuters) - U.S. ethanol production posted a modest gain in the latest reporting week, rebounding from more than a two-month low during the previous period, the Energy Information Administration said in its weekly petroleum report on Wednesday.
Ethanol output rose to 873,000 barrels per day (bpd) for the week ended July 15, which was up 1,000 bpd from the previous week and 4.4 percent higher than the 836,000 bpd produced in the same week last year, EIA said.
IDLE GERMAN BIODIESEL PLANT RESTARTS UNDER NEW OWNERS
HAMBURG, July 22 (Reuters) - The German biodiesel plant previously operated by insolvent green fuels producer EOP Biodiesel AG will restart production on Monday, its new owners said on Friday.
The company German Biofuels GmbH in March bought EOP's 132,000 tonnes annual capacity biodiesel plant in Pritzwalk in eastern Germany which has been idle since October 2010.
COPERSUCAR DELAYS BRAZIL IPO AS CONDITIONS WORSEN
SAO PAULO, July 19 (Reuters) - Copersucar, Brazil's largest sugar and ethanol trader, on Tuesday delayed a plan to sell shares for the first time, a source told Reuters, signaling that debt woes abroad are spoiling appetite for equity offerings in Latin America's biggest economy.
The source, who has knowledge of the situation but declined to be identified because the transaction is still in the works, did not specify when the initial public offering plans would be resumed. Under Brazilian law, companies can resume IPO plans within 60 days if basic terms of the deals are not modified.
CATHAY INDUSTRIAL BIOTECH FILES FOR IPO OF UP TO $200 MLN
July 19 (Reuters) - China's Cathay Industrial Biotech Ltd filed with U.S. regulators on Tuesday to raise up to $200 million in an initial public offering of American Depositary Shares.
In a filing with the U.S. Securities and Exchange Commission, the company said Morgan Stanley, Deutsche Bank Securities and Jefferies would be underwriting the offering.
EU GETS TOUGH ON DIRTY BIOFUEL, PLEDGES MORE ACTION
BRUSSELS, July 19 (Reuters) - Europe's energy chief announced seven green certification schemes for biofuels on Tuesday and promised in future to tackle the unwanted side-effects of turning food into fuel.
Guenther Oettinger said biofuels' indirect impacts were dangerous for the planet's carbon balance and food supply.
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