FKLI and FCPO Futures Corner - Bursa Malaysia

20120202 1816 FCPO EOD Daily Chart Study.

2012-02-02T18:16:00.000+08:00

FCPO closed : 3056, changed : -22 points, volume : higher.
Bollinger band reading : downside biased with possible pullback correction.
MACD Histrogram : falling, seller in charge.
Support : 3050, 3020, 2970, 2950 level.
Resistance : 3070, 3100, 3150, 3200 level.
Comment :
FCPO closed recorded loss with increasing volume exchanged. Soy oil price currently trading lower after last 2 days rebounded higher while crude oil price currently trading lower.
Market reacted poorly to yesterday news on government delayed tax free crude palm oil export quotas.
Technical reading revised to suggesting a downside biased market development with possible pullback correction.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with larger cut loss and profit target.

20120202 1805 FKLI EOD Daily Chart Study.

2012-02-02T18:05:00.000+08:00

FKLI closed : 1523.5, changed : +10 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : recovering, buyer seller battling.
Support : 1515, 1505, 1500, 1494 level.
Resistance : 1530, 1540, 1550, 1565 level.
Comment :
FKLI closed recorded gains with improving volume transacted doing 13.5 points discount compare to cash market that also closed higher. Overnight U.S. market closed recorded small gain and today Asia markets traded ended mostly higher while European markets trading between gain and losses.
Global markets traded higher after Japan, U.S. and Europe recorded improved manufacturing data.
Daily chart study remained suggesting a side way range bound market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

20120202 1741 Regional Markets EOD Daily Chart Study.

2012-02-02T17:41:00.000+08:00

DJIA chart reading : pullback correction upside biased.

Hang Seng chart reading : upside biased.

KLCI chart reading : upside biased with possible pullback correction.

20120202 1727 Global Market & Commodities Related News.

2012-02-02T17:27:00.001+08:00

FOREX-Dollar pressured as risk appetite improves
SINGAPORE, Feb 2 (Reuters) - The euro edged higher and the Australian dollar hit a five-month high on Thursday as risk sentiment improved after global manufacturing data allayed the market's worst fears about global growth.
Underscoring its broad retreat, the dollar hovered near a three-month low hit against the yen the previous day, and the U.S. currency also fell against emerging Asian currencies such as the Singapore dollar .

Euro, stocks firm on easing global growth concerns
TOKYO, Feb 2 (Reuters) - Asian shares, the euro and crude oil rose as encouraging manufacturing data soothed fears about the global economic fallout from the euro zone debt crisis, with a drop in European government debt yields also supporting sentiment.
"PMIs in the U.S., China, Germany are more resilient than expected, encouraging heavy money to finally step in as the holy combination of PMIs above 50 and loose monetary policy means buying risk," said Sebastien Galy, strategist at Societe Generale.

High demand whittled record canola crop-trade
WINNIPEG, Manitoba, Feb 1 (Reuters) - Strong export demand for canola chewed through much of Canada's record-large harvest of the oilseed last autumn, leaving year-end stocks slightly smaller than they were a year earlier, according to traders and analysts.
In a Reuters poll, eight traders and analysts estimate, on average, there were 9.1 million tonnes of canola in farm bins and grain elevators on Dec. 31 - down 3.5 percent from a year earlier.

US grains pull back after rally on Russia, cold snap
SYDNEY, Feb 2 (Reuters) - U.S. grain futures dipped onprofit taking in early Asian trade, retreating following a surge in the previous session as icy conditions in Europe threatened the winter wheat crop and Russia weighs up export curbs.
Chinese demand for U.S. soybeans increased this week for shipments through March. Brazilian soybeans were cheaper for shipment in April and beyond. Nearby Brazilian prices supported by strong demand and slow harvest pace and quality concerns due to rain in the north.

Brazil 11/12 soybean crop seen 71.9 mln T-Abiove
SAO PAULO, Feb 1 (Reuters) - Brazil's 2011/12 soybean crop that is now being harvested is seen at 71.9 million tonnes, down from a previous view earlier in the month of 74.6 million tonnes, the grain crushing industry association Abiove said on Wednesday.
Abiove said exports would also fall over the February-January commercial to 33 million tonnes from 34 million tonnes previously forecast.

Brazil CS sugar output slows as harvest ends
BRASILIA, Feb 1 (Reuters) - Sugar production in Brazil's center-south region slowed to a trickle during the first half of January, data from cane industry association Unica showed on Wednesday, as a disappointing harvest draws to a close.
The cane crush from the outset of the season on April 1 until Jan. 16 stood at 492.7 million tonnes, up from 492.2 million tonnes by Jan. 1, Unica said. Sugar production was barely changed from early January at 31.2 million tonnes.

Ukraine 2012 winter grain harvest may fall by 42-58 pct
KIEV, Feb 1 (Reuters) - Ukraine's harvest of winter grains could fall by 42-58 percent to between 10 and 14 million tonnes due to poor weather during sowing and wintering, the state weather forecaster said on Wednesday.
Tetyana Adamenko, head of the agricultural department of Ukraine's meteorological service, told Reuters that Ukrainian winter grains, which had suffered from a severe drought in July-November, now were hit by record frosts of minus 33 degrees Celsius (minus 27 Fahrenheit).

India vegoil imports seen rising as plantings fall
NEW DELHI, Feb 1 (Reuters) - India's rapeseed output is likely to drop by a quarter in the crop year ending June 30, meaning that vegetable oil imports by the world's top buyer could rise by about half a million tonnes in the import year ending Oct. 31, trade officials said.
The expected drop in rapeseed production reflects a likely decline in output in Rajasthan, the north Indian state that produces about half of the country's output.

India coffee exports fall 7.5 pct in Oct-Jan
MUMBAI, Feb 1 (Reuters) - Coffee exports from India fell 7.5 percent to 79,021 tonnes in October-January on lower stocks and rising local demand. Arrivals from the new crop in coming months are expected to stem the fall, though.
In value terms, the exports rose to $243.05 million from $218.91 million a year ago, the Coffee Board said in a statement.

Brent rises toward $112 on Iran, promising economic data
SINGAPORE, Feb 2 (Reuters) - Brent crude rose toward $112 a barrel, extending gains for a third day on persistent worries over supply from Iran, while upbeat global manufacturing data also boosted appetite for riskier assets.
"We've got a bullish bias and the Chinese PMI data was supportive of that," said Jonathan Barratt, chief executive of Barrattsbulletin.com.

China CNOOC aims to triple oil, gas production by 2030
BEIJING, Feb 2 (Reuters) - China National Offshore Oil Corp (CNOOC), parent of CNOOC Ltd , aims to double its oil and gas production by 2020 and triple it by 2030 against the level in 2010, Chairman Wang Yilin said.
CNOOC's oil and gas production from domestic fields in 2010 topped 50 million tonnes of oil equivalent. The company did not give overseas output figures for 2010.

LME copper slips on slow China demand, EU debt woes
SHANGHAI, Feb 2 (Reuters) - London copper slipped as gains in the past month kept Chinese buyers at bay and the euro zone debt crisis continued to weigh on sentiment, but upbeat global manufacturing data is expected to keep a floor under prices. "The market is digesting the supportive PMI numbers, which have confirmed that industrial activity looks considerably better compared to Q4 last year, but there's some uncertainty, especially over the funding stress in Europe," said Stefan Graber, a Credit Suisse Private Banking analyst based in Singapore.

Gold rises to 8-week high, firm euro supports
SINGAPORE, Feb 2 (Reuters) - Gold extended gains,rising to its highest level in nearly two months, as the euro firmed on upbeat global manufacturing data and expectations that a Greek debt deal to avoid a messy default was close at hand.
"Our near-term upside target is $1,780. We think that's going to be taken out within the next six weeks or so," said Nick Trevethan, a senior commodity strategist at ANZ in Singapore.

Russia's 2011 gold output misses forecast
MOSCOW, Feb 1 (Reuters) - Russian firms produced 209.0 tonnes of gold in 2011, 3.6 percent more than in 2010, but below an earlier forecast, data published on Wednesday by the Gold Industrialists' Union industry lobby showed.
The union expected Russia to produce 211 tonnes of gold last year, up from 202 tonnes in 2010, of which 185 tonnes was expected to be mined.

METALS-LME copper slips on slow China demand, EU debt woes
SHANGHAI, Feb 2 (Reuters) - London copper slipped on Thursday as gains in the past month kept Chinese buyers at bay and the euro zone debt crisis continued to weigh on sentiment, but upbeat global manufacturing data is expected to keep a floor under prices.
Three-month copper on the London Metal Exchange inched down 0.38 percent to $8,408 a tonne by 0436 GMT, partly reversing gains from the previous session. The metal rose 9.5 percent in January, its biggest monthly increase in three.

PRECIOUS-Gold rises to 8-week high, firm euro supports
SINGAPORE, Feb 2 (Reuters) - Gold extended gains on Thursday, rising to its highest level in nearly two months, as the euro firmed on upbeat global manufacturing data and expectations that a Greek debt deal to avoid a messy default was close at hand.
Investors are now eyeing the release of U.S. weekly jobless claims data to gauge the health of the world's largest economy, after higher January factory activity was reported for China, the United States and Germany.

20120202 1143 Global Market & Commodities Related News.

2012-02-02T11:43:00.001+08:00

GLOBAL MARKET-Euro, stocks firm on easing global growth concerns
TOKYO, Feb 2 (Reuters) - Asian shares and the euro gained on Thursday as global manufacturing data soothed fears about global economies deteriorating on the back of the ongoing euro zone debt crisis, while falling European debt yields also improved sentiment.
"PMIs in the U.S., China, Germany are more resilient than expected, encouraging heavy money to finally step in as the holy combination of PMIs above 50 and loose monetary policy means buying risk," said Sebastien Galy, strategist at Societe Generale.

COMMODITIES-CRB dips as grains surge, US oil weak
NEW YORK, Feb 1 (Reuters) - Surging grain futures were offset by a decline in U.S. oil and cocoa prices on Wednesday, keeping a lid on commodity markets for a third straight day.
"It's not a question of if they will, it's only a matter of when," Dennis Gartman, a veteran commodities investor, said, referring to the possibility of Beijing launching stimulus measures once its economic growth engine shows signs of fatigue.

Brent crude up as China, Iran outweigh US stockbuild
NEW YORK, Feb 1 (Reuters) - Brent crude rose on Wednesday as upbeat Chinese manufacturing data and concerns about the standoff between Iran and the West outweighed data showing a large build in U.S. oil inventories.
"We feel that an additional expansion of a couple more dollars is likely given the growing contrast between a supply re-build at Cushing and an attempt by European refiners to obtain alternative supply sources ahead of an Iranian embargo," said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois.

Europe meets rising gas demand during cold spell
LONDON, Feb 1 (Reuters) - A cold front blamed for more than 40 deaths in Ukraine alone tested Europe's gas supply on Wednesday, but industry officials said stored supply and imports from Russia and Norway were meeting the spike in demand for heating.
Western and northwest Europe are expected to see some reprieve from freezing temperatures by the weekend, putting the focus regarding possible gas shortfalls on parts of Eastern Europe.

Oil in equilibrium at $100 - Mercuria
DAVOS, Feb 1 (Reuters) - Oil prices are comfortable around $100 a barrel and are unlikely to spike much higher for long even if Iranian oil supply is disrupted, the head of energy trading house Mercuria says.
Marco Dunand, chairman of Mercuria Energy Group, told Reuters the oil market had steadied despite turbulence in the Middle East and North Africa over the last year and tension between Iran and the West over Tehran's nuclear programme.

US natgas ends down 5 pct, pressured by weather, supplies
NEW YORK, Feb 1 (Reuters) - U.S. natural gas futures ended lower on Wednesday for a third day as record-high supply levels and mild weather forecasts through mid-February continued to weigh on the market.
"This is a more persistent overhang and will need much more than some token announcements (by producers) to shut in a few molecules here and there to break the back of the glut," Gelber & Associates analyst Pax Saunders said in a report.

Euro Coal-Physical prices drop on ample offers
LONDON, Feb 1 (Reuters) - A rise in offers for coal deliveries clashed with a lack of bids on Wednesday, pulling down European physical coal prices, traders said.
"The offers available are still at too high a price to be taken, so many coal users are still burning stock before taking on new orders," one coal trader said.

20120202 1026 Local & Global Economic Related News.

2012-02-02T10:26:00.002+08:00

Economy: Malaysia, Australia to sign trade pact in May
Minister of International Trade and Industry Datuk Seri Mustapa Mohamed said the Malaysia-Australia Free Trade Agreement (MAFTA) will be signed this May after the conclusion of the talks on the agreement, slated in March, He said the much-delayed agreement, which was mooted in 2005, would be concluded this year as per aspirations of Prime Minister Datuk Seri Najib Tun Razak and his Australian counterpart, Julia Gillard, when the latter paid an official visit to Canberra. (Bernama)

Economy: Bank Negara keeps key rate at 3%
Bank Negara Malaysia has maintained the Overnight Policy Rate (OPR) at 3%. The central bank said in the recent months, global economic and financial conditions had deteriorated following the escalation of the sovereign debt crisis in Europe, the ongoing fiscal consolidation and the significant policy uncertainties. In the domestic economy, it said, the latest indicators pointed towards continued expansion in 4Q 2011. The central bank said growth was driven by sustained domestic consumption and investment activities, while the external sector showed signs of moderation. It added that the economy is expected to continue to expand, underpinned by sustained private sector economic activity and further reinforced by public sector spending. (Business Times)

Indonesia: Inflation eases, providing scope to keep rates low
Indonesia’s inflation slowed for a fifth straight month in January, bolstering the case for the central bank to keep interest rates low as global growth falters. Consumer prices rose 3.65% last month from a year earlier after climbing 3.79% in December. (Bloomberg)

South Korea: Exports decline on Europe as inflation cools
South Korea’s exports unexpectedly fell for the first time in more than two years and inflation moderated to the slowest pace in 12 months, boosting the case for holding off on interest-rate increases. Overseas shipments dropped 6.6% in January from a year earlier after a revised 10.8% rise in December while consumer prices rose 3.4% from a year earlier, the slowest since Jan 2011 when they gained at the same speed. (Bloomberg)

China: Manufacturing holds up against global slowdown
Chinese manufacturing indexes rose in January as the world's second-biggest economy withstood weaker exports driven by Europe's debt crisis and a government-induced property slowdown. The official purchasing managers' index increased to 50.5 from 50.3 in December. (Bloomberg)

India: Manufacturing up at fastest clip in 8 months
India's manufacturing sector in January hummed along at its fastest clip in eight months, fuelled by new order growth. The HSBC India Manufacturing Purchasing Managers' Index, a key measure of factory production, registered 57.5 in January, up from 54.2 in December accelerating for the second straight month. (Bloomberg)

EU: ECB loan collateral plan said to be avoided by some Euro members
The ECB’s plan to accept more bank loans as collateral may not be used by all euro-region nations, threatening to fragment the rules applying to bank funding operations, said 2 euroarea officials with knowledge of the discussions. The initiative is likely to be implemented on a voluntary basis by national central banks and several of them may opt out, said the officials, who declined to be identified because the information is confidential. Germany’s Bundesbank has indicated it may be among those to shun the measure, arguing the country’s banks don’t need to borrow more from the ECB. An ECB spokesman declined to comment. (Bloomberg)

EU: Leaders sign stricter fiscal pact
EU leaders endorsed a treaty aimed at strengthening accountability and keeping a closer eye on member nations’ efforts to rein in overspending and resolve the region’s debt crisis. European Council President Herman Van Rompuy said the treaty is all about more responsibility and better surveillance. Every country that signs it commits to bringing in a ‘debt brake’ or ‘golden rule’ into its own legislation, and will do so at constitutional or equivalent level. He added that the new voting rules and an automatic correction mechanism will enforce compliance more effectively. 25 member states, including 17 euro-zone countries, are expected to sign the fiscal compact when the leaders next gather in Mac. Only UK and Czech Republic will not be signatories. The treaty will take effect once at least 12 euro nations have ratified it. (MarketWatch)

EU: Draghi stuck with Trichet’s bond plan
The ECB’s bond program, dubbed “temporary” by Jean-Claude Trichet, shows no signs of ending even after 219bn euros ($289bn) of purchases augmented by twice as much in 3 year loans. The ECB, led by Mario Draghi since he replaced Trichet on Nov 1, has bought bonds for its Securities Market Program every week since Aug. (Bloomberg)

UK: Factory gauge rose to 8 month high in Jan
A UK manufacturing index jumped to an 8 month high in Jan and unexpectedly returned to growth after a quarter of contraction as production rebounded. The factory gauge, based on a survey by Markit Economics and the Chartered Institute of Purchasing and Supply, rose to 52.1 from a revised 49.7 in Dec. The median forecast of 28 economists in a Bloomberg News survey was for a reading of 50, the level that divides expansion from contraction. (Bloomberg)

Germany: Unemployment fell in Jan German unemployment dropped more than economists forecast to a 2 decade low in Jan, bolstering economic growth as the euro region’s fiscal crisis prompted companies from Spain to Greece to cut jobs. The Nuremberg-based Federal Labor Agency said that the number of people out of work fell a seasonally adjusted 34,000 to 2.85m. Economists predicted a decline of 10,000, the median of 32 forecasts in a Bloomberg News survey showed. (Bloomberg)

France: Consumer spending falls as jobless claims surge
French consumer spending fell in Dec as surging joblessness and concern about looming tax increases prompted households to cut back. National statistics office Insee said that spending fell 0.7% from Nov, when it fell 0.1%. Economists expected an increase of 0.2%, according to the median of 18 estimates gathered by Bloomberg News. Household purchases have hovered around zero since Augand were down 3.1% in Dec from a year earlier, underlining consumer pessimism as Europe’s second-largest economy tips into recession. Jobless claims jumped to as 12-year high of 29,700 in Dec as President Nicolas Sarkozy prepared to implement the second-round of tax increases and spending cuts in less than half a year. (Bloomberg)

Greece: Bondholders said set to get GDP sweetener in debt swap
Greek bondholders may get a sweetener tied to a revival in economic growth to ease the impact of accepting a lower interest rate on the new bonds, sources said. In discussions late last week, creditors lowered their demands for an average coupon on the new 30-year securities they would receive to as little as 3.6% from 4.25% after European officials demanded they take steeper losses. While the move would lead to an estimated loss of 70% or more for investors, adding a GDP warrant – which would pay bondholders more if the Greek economy rebounds – would trim the loss in net present value terms by an estimated 0.5 to 3ppts. (Bloomberg)

Portugal: Borrowing costs fall after ECB action
Portugal’s borrowing costs declined at a successful auction of EUR1.5bn of shorter-term government debt, after the ECB intervened in the country’s sovereign debt market earlier this week to subdue soaring bond yields. The six-month notes due in July 2012 were issued at an average yield of 4.463%, compared with an average yield of 4.74% at a previous auction on 18 Jan. (Bloomberg)

US: Construction spending climbs most in 4 months
Construction spending in US rose in December at the fastest pace in 4 months, reflecting broad-based gains that signal the industry is stabilizing. Building outlays increased 1.5%, the biggest gain since August. (Bloomberg)

US: Treasury plans USD72bn debt as negative yield sale seen
The US Treasury Department said it plans to sell USD72bn in notes and bonds at next week’s quarterly refunding, while a Wall Street advisory panel urged the government to allow negative yields at bill auctions. “In the coming weeks there will be a seasonal increase in borrowing needs ahead of the April 2012 tax season,” the Treasury said in a statement today. “Treasury plans to address this seasonal borrowing need through increases in regular bill auction sizes and cash management bills.” (Bloomberg)

US: Manufacturing bolsters global expansion
Manufacturing in US grew in January at the fastest pace in seven months, adding to signs of a global pickup from Germany to China. The Institute for Supply Management’s index climbed to 54.1, from 53.1 in December. (Bloomberg)

US: Regulators weigh Volcker exemption for sovereign debt
U.S. banking regulators are exploring whether they can exempt sovereign debt from the Dodd-Frank ban on proprietary trading after foreign governments complained that the rule could raise borrowing costs and impede the flow of capital. 5 regulatory agencies are taking public comments on a proposed version of the so-called Volcker rule, which was included in the 2010 financial regulatory overhaul to ban deposit-taking banks from trading with their own money. While foreign government bonds would fall under the rule as proposed, U.S. government debt would be exempt. Officials from Canada, Japan, and UK have sent letters to the Treasury Department and regulators saying the measure would harm their ability to raise money. (Bloomberg)

US: Home prices fall for third straight month
U.S. home prices fell for a third straight month in nearly all cities tracked by a major index. The declines show that most homeowners are not reaping the benefits from some signs of an improving housing market. The S&P/Case-Shiller home-price index shows prices dropped in Nov from Octin 19 of the 20 cities tracked. The biggest declines were in Atlanta, Chicago and Detroit. Phoenix was the only city to show an increase. Prices declined in 18 of the 20 cities in Nov compared to the same month in 2010. Only Washington and Detroit posted year-over-year increases. The decline partly reflects the typical fall slowdown after the peak buying season. Still, prices have fallen 33% nationwide to 2003 levels. (Associated Press)

20120202 1025 Malaysia Corporate Related News.

2012-02-02T10:25:00.005+08:00

Tebrau Teguh picked to develop Johor land, IWH buys Tebrau Teguh Stake
Property developer Tebrau Teguh, which will see the involvement of construction tycoon Datuk Lim Kang Hoo of Ekovest in the company, has been chosen by the Johor government to develop 161 hectares of land in the southern state. The land, located in Pengerang, Kota TInggi, within the oil and gas industry hub, is to be comprehensive mixed development that complements Petroliam Nasional’s USD20bn (RM60.8bn) refinery and petrochemicals integrated development. (BT)
Tebrau Teguh’s major shareholder Kumpulan Prasarana Rakyat Johor SB (KPRJ) is selling a 33.15% stake in Tebrau Teguh to Iskandar Waterfront Holdings SB (IWH) for RM0.76 per share. The offer is for 222m ordinary shares of RM0.50 each in Tebrau Teguh, which works out to a price tag of RM168.7m. (StarBiz)

IJM, Ahmad Zaki receive letters of acceptance from MRT
IJM Corp and Ahmad Zaki Resources (ARZB) have received the letters of acceptance from MRT Corp that confirm their appointments as the main contractors for the two elevated packages of the My Rapid Transit (MRT) Sungai Buloh-Kajang line. ARZB said the date for the practical completion for the works was 30 June 2016 and the date for line completion for the whole of the works was 31 July 2017. (StarBiz)

Bank Negara maintains OPR at 3%
Bank Negara has maintained the Overnight Policy Rate (OPR) at 3%, after the Monetary Policy Committee meeting. In a statement, the central bank said the global environment would be more challenging and it would continue to assess the risks to domestic growth and inflation. (StarBiz)

BLand sells RM35m worth of BToto shares
Berjaya Land (Bland) has disposed 8.25m Berjaya Sports Toto (BToto) shares worth RM35.16m on 30 Jan 2012, according to a filing to Bursa Malaysia yesterday. Bland said the shares were sold at an average selling price of RM4.26 per share and the money raised would be used as working capital and to repay bank borrowings. (Malaysian Reserve)

Hua Yang to launch affordable houses in Klang Valley
Hua Yang plans to launch affordable housing projects with a total gross development value (GDV) of about RM500m in the Klang Valley in its 2014 financial year. Chief Executive officer Ho Wen Yan said: “We are in the midst of securing landbank for these mixed development projects. The first launch will be in the next financial year”. (Malaysian Reserve)

TNB and Petronas make gas investments in Sabah
Tenaga Nasional Berhad (TNB) and Petroliam Nasional (Petronas) are investing RM2bn in a 300 MW gas plant and liquefied natural gas (LNG) terminal in Sabah. The two projects – the gas plant to be majority owned by TNB with Petronas taking the lead to set up the LNG Terminal – are targeted for completion in 2015. “Before this, it was just approval in principle,” TNB CEO Datuk Seri Che Khalib Mohd Noh told StarBiz. “We are now starting to the environmental impact assessment (EIA) and coming up with the engineering design for the plant soon.” (StarBiz)

UMLand: To start mixed project in downtown Johor Baru
United Malayan Land (UMLand) plans to start its multi-million ringgit mixed development project in Jalan Wong Ah Fook in downtown Johor Baru this year. Group Chief Pee Tong Lim said the project was now in the planning stage which included the GDV, land utilisation and other related development details. He said the company is looking at building a hotel block, a serviced apartment tower and a retail podium on the site. Pee said he hoped the project would start concurrently with the RM1.8bn Johor Baru City Centre transformation plan which is expected to start either in 2Q or 3Q 2012. The land is situated opposite Kompleks Tun Abdul Razak and just a short distance from JB City Square shopping mall. Separately, Pee said the company's joint venture project with UEM Land Bhd, the master developer of Nusajaya at Puteri Harbour, would start early next month. (Starbiz)

MAHB: KLIA2 on track and within budget
MAHB’s chairman Tan Sri Aris Othman said that the development of the new low cost terminal at KLIA2 is on track for completion in Apr 2013. He added that the new terminal was 42% completed as of end-2011 and the cost is still within the RM3.9bn cap. (SunBiz)

MAS: Announced new short haul management structure
MAS announced the management structure of its new short haul airline which is expected to start operations by 2Q 2012. The new airline will be led by Mohammed Rashdan Yusof as CEO, short haul while the overall operations will be managed by Ignatius Ong Ming Choy as COO, short haul. The airline’s operations will be divided into three core functional areas, namely commercial, operations and support services. It will operate the entire narrow-body fleet and short haul routes of MAS, as well as the Firefly ATR turboprop business. (Business Times)

MAS: Joins oneworld's Global explorer fare
The world’s premier global airline alliance, oneworld, will include MAS full global schedule involving around 60 destinations worldwide in its Global Explorer fare starting from Wednesday. MAS said, with the inclusion, the national carrier will be one of the most attractive networks in Southeast Asia for round-the-world fares offered by all members of the alliance and selected other airlines. (Business Times)

DRB-Hicom: To assemble Roadster locally
USF-HICOM (Malaysia) Sdn Bhd’s COO, Mohd Iqbal Shaharom said the wholly-owned subsidiary of DRB-HICOM will assemble 3 wheeler superbike, BRP CAN-AM Spyder roadster locally with an initial investment of RM2m. He said the company will use the Modenas facilities in Gurun, Kedah for the assembling of the superbike. He added that USF-HICOM has targeted to sell 120 units of the superbike by end-Mac. Currently, the company has 45 bookings for the roadster and 96 unit in stocks. (SunBiz)

Proton: GM open to collaboration
General Motors Company (GM), the world’s largest automotive group, is open to any future collaboration with Proton and its new owner DRB-HICOM. GM international operations communications manager Jonathan Rose said in order to strengthen its business, the group is constantly in talks and discussions with possible partners and original equipment manufacturers including Proton. However, he declined to comment further. Rose was representing GM Southeast Asia operations president Stephen K. Carlisle. (Business Times)

Leader Universal: Delisting gets nod
Southeast Asia's largest cable and wire producer Leader Universal Holdings (LUH) is poised to be delisted by the middle of the year. The company on Tuesday received shareholders' approval for its privatisation and will now forward its application to the authorities for its delisting. LUH MD and CEO Datuk Sean H'ng Chun Hsiang said that the delisting is subject to the High Court approval and the company hope to go private by July. (Business Times)

Melewar Industrial: Proposes share capital reduction, rights issue
Melewar Industrial Group (MIG) has proposed a corporate exercise involving a share capital reduction and a renounceable rights issue of up to 150.348m new shares. MIG said at an indicative price of 40 sen per rights share, the rights share would enable it to raise between RM21.97m and RM60.14m. As for the share capital reduction, this would involve cancelling 75 sen of the par value of every existing RM1 share. The share capital reduction would not result in any adjustment to the share price and existing number of shares issued in the company. (Financial Daily)

Automotive: Perodua to develop own model
Perusahaan Otomobil Kedua Sdn Bhd’s (Perodua) management said the company is working towards launching its first model in a few years. This moves beyond the current stage where the second national carmaker manufactures Daihatsu models with minimal customizations and rebadge as its own. According to the management, though own model will still be using the platform and engine sourced from Daihatsu, it will look and feel different as Perodua will design the upper body and interior for its target market preference to differentiate its future offerings from those of its partner, Daihatsu Motor Co Ltd. (Financial Daily)

Automotive: Bank Negara asked to ease loan conditions
Second national car manufacturer Perodua, which produces affordable compact cars for the masses, has asked Bank Negara Malaysia to ease up on tight loan conditions for hire purchase of cars imposed effective this year, saying they are affecting car sales. Its MD Datuk Aminar Rashid Salleh said that registration of news cars in Jan dipped by 15%-20% while new orders fell 5% owing to the tighter conditions. Previously, processing for car loans was based on a buyer's gross income, but since Jan, the central bank has directed banks to base loan approvals on net income, in efforts to curb household debt. Processing hire purchase loans also takes longer, between 7-8 days. (Business Times)

Media: Adex up 12% in 2011
Market research firm Nielsen Malaysia said advertisers spent RM10.76bn on media expenditure last year, up 11.9% from 2010. The surprisingly tepid advertising expenditure (adex) growth in 4Q 2011 at 8.3% y-o-y dragged down total adex growth for the year. Adex had soared 15% in 1H 2011, and it continued to expand by double-digit percentage (11.3%) in 3Q 2011. Adex growth for last year came at the bottom end of the 12% to 15% range forecast by media specialists contacted by StarBiz in Nov. (Starbiz)

Plantation: Malaysia Jan palm oil exports fall 12%
Independent market surveyor Intertek said Malaysia’s palm oil exports fell 12% in Jan. A total of 1.32m metric tons of the commodity were tracked on Jan 1 to Jan 31, versus 1.49m tons in the same period in Dec. (Business Times)

Power: Energy panel shortlist by middle of this month
The Energy Commission Malaysia will shortlist by middle of this month candidates from 47 companies, consortium and joint ventures, including 10 foreign firms, which have submitted bids under the competitive bidding process for new combined-cycle power plants. CEO Datuk Ahmad Fauzi Hasan said the commission sent the request for quotation (RFQ) to these prospective bidders on Tuesday. The tender is for 4,500MW of new capacity for 2016 and 2017. About 3,500MW will be needed to replace retiring capacity, while the remaining 1,000MW is additional capacity for the future. The new competitive bidding will replace the expiring agreement of the first-generation independent power producers or the power purchase agreement. (Business Times)

20120202 1019 Global Market Related News.

2012-02-02T10:19:00.001+08:00

Asian Stocks Rise for Third Day on Global Outlook; Glitch Hits Tokyo Trade (Source: Bloomberg)
Asian stocks advanced for a third day, with the regional benchmark index heading for its highest close in three months, as manufacturing gained in the U.S. and Europe, boosting confidence the global economy is recovering. LG Electronics Inc. (066570), the world’s third-largest maker of mobile phones, climbed 5.9 percent in Seoul. James Hardie Industries SE, the building materials supplier that counts the U.S. as its top market, jumped 4.9 percent in Sydney as construction spending in America rose in December at the fastest pace in four months. Trading in 241 stocks including Sony Corp and Hitachi Ltd. was halted on the Tokyo Stock Exchange due to a technical glitch, bourse spokeswoman Yukari Hozumi said by phone.
“We got more confirmation that business confidence in the U.S. and Europe is improving” said Mitsushige Akino, who oversees about $600 million at Ichiyoshi Investment Management Co. in Tokyo. “The European debt crisis is in a temporary lull, so stocks sensitive to the economy will have a chance to gain.”

Japan Stocks Rise as Manufacturing Gains in U.S., Europe Boost Confidence (Source: Bloomberg)
Japanese stocks rose, pushing the Nikkei 225 Stock Average toward a three-day gain, as expanding manufacturing in the U.S. and Europe boosted confidence in the global economic recovery. Canon Inc. (7751), a camera maker that gets 80 percent of its sales overseas, rose 0.8 percent. Honda Motor Co., Japan’s second-largest carmaker by revenue, gained 2.9 percent after a jump in U.S. sales following an eight-month slump. Nomura Holdings Inc. (8604) soared 6.8 percent after the brokerage posted an unexpected quarterly profit on asset sales even as trading commissions fell. “We have more confirmation that business confidence in the U.S. and Europe is improving,” said Mitsushige Akino, who oversees about $600 million at Ichiyoshi Investment Management Co. in Tokyo. “The European debt crisis is in a temporary lull, so stocks sensitive to the global economy will have a chance to gain.”

U.S. Stocks Advance Amid Optimism About Global Manufacturing (Source: Bloomberg)
U.S. stocks advanced, snapping a four-day decline in the Standard & Poor’s 500 Index, amid signs that manufacturing across the world is strengthening. Financial (S5FINL) and industrial shares in the S&P 500 rose at least 1.1 percent to lead gains among 10 groups. Morgan Stanley and Bank of America Corp. added more than 3.2 percent. Whirlpool (WHR) Corp. surged 13 percent as the appliance maker projected earnings that beat forecasts. Technology companies in the benchmark index rallied to an 11 year-high. Broadcom (BRCM) Corp. jumped 8.1 percent as it forecast sales that may top estimates. The S&P 500 increased 0.9 percent to 1,324.09 at 4 p.m. New York time, following the biggest January advance in 15 years. The Dow Jones Industrial Average rallied 83.55 points, or 0.7 percent, to 12,716.46, trimming an earlier 152-point gain that sent it above its highest close since May. The Russell 2000 Index of small companies jumped 2.1 percent to 809.66.

European Stocks Rise to a Six-Month High as Manufacturing Gauges Increase (Source: Bloomberg)
European (SXXP) stocks advanced to a six- month high, with the Stoxx Europe 600 Index extending its best start to a year since 1998, as gauges of manufacturing increased from America to the euro area to China. Banks and carmakers led gains. ICAP Plc (IAP) jumped 7.7 percent after saying annual pretax profit will be at the “upper end” of the range of analysts’ estimates. RWE AG (RWE) climbed 4.9 percent after Morgan Stanley added the stock to its best ideas list. The Stoxx 600 rose 2 percent to 259.51 at the close in London, its highest level since August. The benchmark gauge rallied 4 percent last month, the biggest January gain since 1998, as the U.S. economy maintained its recovery and speculation grew that European (SXXP) policy makers will contain the region’s debt crisis.

Global Strategists Abandoning Bearish Views After Missing Rally (Source: Bloomberg)
Strategists at the biggest banks are capitulating on their bearish forecasts after the best start to a year for global stocks since 1994 and gains of more than 7 percent in emerging-market currencies. Just two weeks after saying that investors should “remain cautious,” Larry Hatheway, the chief economist at UBS AG (UBSN), raised his recommendations on global shares and high-yield bonds in a Jan. 23 note to customers entitled, “Wrong, but not too late.” Royal Bank of Scotland Group Plc (RBS), and Benoit Anne, the global head of emerging-markets strategy at Societe Generale (GLE) SA, said their estimates for developing nations were proven wrong.
The MSCI All-Country World Index (MXWD) climbed 5.7 percent in January, surprising strategists at Bank of America Corp. (BAC), Goldman Sachs Group Inc. (GS) and Barclays Plc (BARC) who had forecast first-half losses because of Europe’s debt crisis. JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C), which predicted the rally in stocks, say it will continue as the U.S. housing market rebounds and China eases lending restrictions to bolster economic growth.

Dollar at 3-mth lows on yen, euro under pressure
TOKYO, Feb 1 (Reuters) - The dollar hovered at three-month lows against the yen and looked poised to lose ground for a fifth straight day, pressured by the Federal Reserve's pledge last week that it would keep interest rates near zero at least until late 2014.
"The Fed's decision is being slowly priced in the market, and it seems the dollar may stay pressured around the current levels at least until Friday's U.S. jobs data," said Koji Fukaya, chief currency analyst at Credit Suisse in Tokyo.

Manufacturing Gains in U.S. Bolster Outlook for Global Expansion: Economy (Source: Bloomberg)
Manufacturing in the U.S. grew in January at the fastest pace in seven months, adding to signs of a global pickup from Germany to China. The Institute for Supply Management’s index climbed to 54.1, from 53.1 in December, the Tempe, Arizona-based group’s report showed today. Figures greater than 50 signal expansion. Other reports showed U.S. construction spending increased at the fastest pace in four months and companies added 170,000 workers to payrolls in January. Stocks rose on optimism the factory reports show the world economy is withstanding fallout from Europe’s debt crisis. Production, led by inventory rebuilding at the end of 2011, is poised to keep expanding in the U.S. as the need to update equipment drives orders at companies like Caterpillar Inc. (CAT) and demand for cars rises.

Fed Bank Presidents Reveal Assets From Ranchland to Inflation-Linked Bonds (Source: Bloomberg)
Federal Reserve regional bank presidents revealed unprecedented details about their personal wealth, disclosing Citigroup Inc. (C) shares bought by accident and ownership of a Missouri farm and Texas ranchland. The regional bank chiefs, who manage Fed operations across the country ranging from bank supervision to emergency lending, disclosed the documents yesterday in response to requests from Bloomberg News under the Freedom of Information Act. The Fed banks said they weren’t subject to the terms of the act, even as they responded to the requests. The 12 regional banks and their presidents aren’t held to the same level of public scrutiny as the Washington-based Federal Reserve Board and its governors. While Chairman Ben S. Bernanke and Fed governors disclose information about their finances and are subject to the FOIA, the regional banks don’t routinely make personal financial information public.

Companies in U.S. Added 170,000 Workers to Payrolls in January, ADP Says (Source: Bloomberg)
Companies added 170,000 workers in January, reflecting job gains in services and at small businesses, according to a private report based on payrolls. The increase was less than forecast and followed a revised 292,000 rise the prior month that was smaller than previously reported, the report from the Roseland, New Jersey-based ADP Employer Services showed today. The median estimate in a Bloomberg News survey of economists called for an advance of 182,000. “The job market continues to grow at a moderate pace,” Jonathan Basile, a senior economist at Credit Suisse in New York, said before the report. “We’re on a gradually improving path for the labor market.”

Negative Treasury Bill Auction Yields Would Avoid ‘Grab-a-Thon,’ CRT Says (Source: Bloomberg)
Letting investors buy short-term bills with negative yields at auction would make the market more efficient, according to CRT Capital Group LLC. The Treasury Borrowing Advisory Committee of the Securities Industry and Financial Markets Association unanimously recommended that the government allow for its auctions of bills to price at negative yields “as soon as logistically practical,” according to the group’s report yesterday to Treasury Secretary Timothy F. Geithner, released today. Investors bid a record 9.07 times the $30 billion in four-week bills sold by the Treasury Department on Dec. 20 at zero yield in one of 12 auctions since the beginning of September at which investors paid the full face value to own the shortest-maturity U.S. government debt. The average ratio of bids to debt sold, known as the bid-to-cover ratio, was 6.01 at the past 10 offerings, with the yield averaging 0.011 percent.

Treasuries Decline on Speculation U.S. Reports Will Show Jobs Improvement (Source: Bloomberg)
Treasuries fell for a second day before reports today and tomorrow that economist said will show U.S. employment grew in January. Government securities extended losses from yesterday in New York when industry figures showed manufacturing expanded in January at the fastest pace since June, crimping demand for the safety of sovereign debt. Ten-year yields rose two basis points to 1.85 percent as of 9:34 a.m. in Tokyo, according to Bloomberg Bond Trader prices. The 2 percent security due in November 2021 fell 5/32, or $1.56 per $1,000 face amount, to 101 3/8. The yield increased three basis points, or 0.03 percentage point, yesterday. It is 18 basis points away from the record low set in September.

Obama Plans Assistance for Refinancing (Source: Bloomberg)
President Barack Obama announced a package of proposals designed to jolt the housing market, his latest effort to reignite the economy after four years of foreclosures and falling home prices. “This housing crisis struck right at the heart of what it means to be middle class in America: our homes,” Obama said in a speech in the Washington suburb of Falls Church, Virginia. “We need to do everything in our power to repair the damage and make responsible families whole.” The president said his plan would make it easier for homeowners to refinance their mortgages into current low interest rates, which are now below 4 percent. Borrowers, even those who owe more than their homes are worth, would be able to refinance into loans guaranteed by the Federal Housing Administration.

Construction Spending in U.S. Climbs Most in Four Months in Stability Sign (Source: Bloomberg)
Construction spending in the U.S. rose in December at the fastest pace in four months, reflecting broad- based gains that signal the industry is stabilizing. Building outlays increased 1.5 percent, the biggest gain since August, Commerce Department figures showed today in Washington. The median estimate of 51 economists in a Bloomberg survey called for a 0.5 percent rise. A housing market that is gaining some steam as builders begin apartment projects may breathe life into the industry that’s struggled since triggering the recession in 2007. At the same time, decreased spending by the government may temper progress in construction as a whole.

Dollar Falls for Second Day Versus Euro on Stocks Rally, Before Jobs Data (Source: Bloomberg)
The dollar fell against the euro the euro for a second day as Asian stocks extended a global rally, damping demand for haven currencies. The yen maintained a decline from yesterday versus the 17- nation currency before U.S. data that economists said will show fewer Americans filed for jobless benefits, adding to evidence that the world’s largest economy is picking up. A gauge of volatility for the yen climbed to the highest this year amid speculation Japan’s government will intervene in the foreign- exchange market. “Risk appetite is fairly positive at the moment, and this could continue for a couple of weeks,” said Derek Mumford, a director in Sydney at Rochford Capital, a currency-risk management company. “Typical safe-haven currencies have taken a step back now,” he said, referring to the dollar and yen.

Facebook Files to Raise $5B in Biggest Internet IPO (Source: Bloomberg)
Facebook Inc. (FB), the social-networking website that in eight years changed the way the world communicates, filed to raise $5 billion in the largest Internet initial public offering on record. Facebook, whose meteoric rise spawned an Oscar-winning film and captivated Wall Street, today named Morgan Stanley as the lead underwriter on the IPO, while reporting a 24-fold increase in sales over the past four years to $3.71 billion in 2011. The planned IPO dwarfs Google Inc. (GOOG)’s 2004 offering and tests whether social-networking providers deserve valuations that surpass such established companies as International Business Machines Corp. (IBM) and Procter & Gamble Co. The Menlo Park, California-based company is considering a valuation of $75 billion to $100 billion, two people with knowledge of the matter said last week.

China’s Manufacturing Industry Holds Up Against Global Slowdown: Economy (Source: Bloomberg)
Chinese manufacturing indexes rose in January as the world’s second-biggest economy withstood weaker exports driven by Europe’s debt crisis and a government-induced property slowdown. The official purchasing managers’ index increased to 50.5 from 50.3 in December, exceeding the median estimate in a Bloomberg News survey for a reading below the 50 level that divides expansion from contraction. The data may have been distorted by a weeklong holiday. A separate gauge from HSBC Holdings Plc and Markit Economics rose to 48.8. India’s manufacturing grew at the fastest pace in eight months. Premier Wen Jiabao yesterday reiterated his government will “fine-tune” economic policies as needed after the central bank held off on a reduction in bank-reserve requirements that some analysts had forecast for January.
Indexes for export orders, imports and employment in the official PMI showed a deeper decline, underscoring an International Monetary Fund warning last week that the euro area’s crisis could trigger another global recession.

Hong Kong Homes Face 25% Drop in Year of the Dragon: Mortgages (Source: Bloomberg)
The Year of the Dragon, representing wealth and power in China, is shaping up to be the opposite for the world’s costliest housing market, Hong Kong. Mortgages (HKMGLEND) that need to be insured by the government because of risk experienced the steepest plunge in six years in 2011, a sign the biggest home price decline since the global credit crisis is accelerating. Property prices that have slid 6 percent since June may fall as much as 25 percent by 2013, estimates Andrew Lawrence of Barclays Capital, who predicted the initial slide in April. Asian real estate markets from Singapore to Beijing to Mumbai are stalling or have started declining as governments seek to curb the type of housing bubble that brought down the U.S. economy. In Hong Kong, rising borrowing costs, extra transaction taxes and higher down-payment requirements imposed by the government have fueled the slump.

ECB Plan for Loans as Collateral Said to Be Avoided by Some Euro Members (Source: Bloomberg)
The European Central Bank’s plan to accept more bank loans as collateral may not be used by all euro-region nations, threatening to fragment the rules applying to bank funding operations, said two euro-area officials with knowledge of the discussions. The initiative is likely to be implemented on a voluntary basis by national central banks and several of them may opt out, said the officials, who declined to be identified because the information is confidential. Germany’s Bundesbank has indicated it may be among those to shun the measure, arguing the country’s banks don’t need to borrow more from the ECB. An ECB spokesman declined to comment. “It contradicts the idea that all banks are treated equally in the euro area,” said Klaus Baader, co-head of economic research at Societe Generale SA in London. “It creates a two-class society. Central banks that take part are therefore identifying themselves as ones that are dealing with a weak banking system.”

Manufacturing Output in U.K. Unexpectedly Returns to Growth After Declines (Source: Bloomberg)
A U.K. manufacturing index jumped to an eight-month high in January and unexpectedly returned to growth after a quarter of contraction as production rebounded. The factory gauge, based on a survey by Markit Economics and the Chartered Institute of Purchasing and Supply, rose to 52.1 from a revised 49.7 in December, Markit said in a report on its website today. The median forecast of 28 economists in a Bloomberg News survey was for a reading of 50, the level that divides expansion from contraction. Separate reports today showed manufacturing indexes for Europe, China and India also rose in January. Still, the debt crisis in the euro area, the U.K.’s biggest export market, has dimmed the outlook for manufacturers, and Bank of England Governor Mervyn King said last week that policy makers can increase stimulus again if needed to aid the economy.

Spain Said to Plan to Buy CoCo Bonds From Banks as Part of Industry Revamp (Source: Bloomberg)
Spain will offer to inject funds into lenders that agree to merge as part of the government’s plan to overhaul the industry and shepherd weaker banks into tie-ups, said a person familiar with the process. The state will buy contingent convertible bonds, or CoCos, which convert to equity when banks’ capital ratio slips below a certain level, yielding 8 percent, said the person, who declined to be named because the plan hasn’t been made public. Spain, which pays about 5 percent to borrow for 10 years, will issue debt to buy the securities, even though the plan will have no impact on the budget deficit, the person said. Lenders that agree to merge will also have longer to apply new provisioning rules that the government will announce on Feb. 3 as part of the overhaul, the person said.

Fernandez Curbing Imports Leaves Argentines Searching in Vain for Fridges (Source: Bloomberg)
Retiree Teresa Teffer searched branches of Argentina’s leading appliance retailers for a fridge and oven she’d seen on display less than two months earlier. She gave up after finding neither. “They have nothing to offer me,” the 71-year-old said as she left an SACI Falabella (FALAB) store in Buenos Aires’s Alto Avellaneda shopping mall. “There are only a couple of lesser- known brands. The government is forcing me to buy what it wants and not what I want.” Consumers face fewer choices in everything from blenders to computer parts as President Cristina Fernandez de Kirchner curbs imports to shore up a dwindling trade surplus and protect manufacturers whose competitiveness is suffering from a peso that’s not weakening fast enough to offset inflation. The restrictions forced automaker Fiat SpA (F)’s local unit to suspend production this month and prompted Brazil’s Trade Minister Fernando Pimentel to say that neighboring Argentina is a “permanent problem.”

20120202 1018 Global Commodities Related News.

2012-02-02T10:18:00.003+08:00

Corn (Source CME)
US corn futures ended higher, buoyed by spillover support from wheat futures. Corn was also buoyed by broader based buying associated with weakness in the U.S. dollar, analysts say. Uncertainty surrounding the amount of damage South American crops incurred from hot, dry conditions are keeping prices underpinned with firm cash prices aiding the positive theme as well, analyst add. CBOT March corn ended up 3c at $6.42/bushel.

Wheat (Source CME)
US wheat futures ended higher, rallying to an over 4 month high for the second consecutive day on worries about freeze damage to European wheat and Russia curbing exports. Investors continued to favor buying wheat, as the uncertainty about lost production from winterkill in the Black Sea region and Europe as well the potential increased export demand from reduced Russian exports sparked buying, analyst say. Added support was drawn from weakness in the U.S. dollar, a feature generating broader based commodity gains. CBOT March wheat ended up 8 1/4c to $6.74 1/4/bushel, March KCBT wheat ended up 7c at $7.22 1/2, and March MGEX wheat ended up 9c at $8.36 3/4.

Rice (Source CME)
US rice futures tumbled for the second straight day, succumbing to speculative selling. The market is under pressure from lagging export demand, with chart based selling accelerating losses once futures dipped below recent lows, analysts say CBOT March rice ended down 26c at $13.74/hundredweight.

GRAINS-U.S. wheat at 4-1/2 month top on Russia export worries
NEW DELHI, Feb 1 (Reuters) - U.S. wheat climbed to a four-and-half month top rising for a second straight session on expectations that Russia, the world's third-largest supplier, was likely to curb exports.
"Prices have gone up because Russia has said that there could be restrictions on wheat exports," said Lynette Tan, analyst with Phillip Futures in Singapore.

Russia govt to determine grain export cap Feb 2
MOSCOW/TAMBOV, Russia, Jan 31 (Reuters) - Russia's government will determine on Thursday how much grain can be exported during this crop year before it considers imposing a protective duty to keep grain in the country, Deputy Prime Minister Viktor Zubkov told Reuters.
"The day after tomorrow I will hold a meeting. We will decide and I will give some signals," Zubkov said in response to a question about the level of export which could trigger the duty.

Mexico lowers corn harvest forecast due to drought
MEXICO CITY, Jan 31 (Reuters) - Mexico's corn harvest will likely be smaller than expected this year, after coming in below expectations last year, due to a devastating drought, Agriculture Minister Francisco Mayorga said on Tuesday.
The corn harvest is now expected to total 20 million tonnes of white corn and 1.8 million tonnes of yellow corn in 2012, compared with the 25 million tonnes estimated before the effects of the dry weather were fully known.

Tight Farmer Holding Pushes Cash Corn Basis (Source CME)
Farmer sales of U.S. corn are not keeping up with relative needs of the spot market, pushing basis levels to record levels for this time of year. Strong prices for corn futures are not loosening the tight grip farmers have on their stored supplies, as they remain reluctant sellers of inventories. "The spot cash market for corn is artificially tight, as we know there is plenty of corn out there in the middle of the marketing year in January," said Darrel Good, agricultural economist at the University of Illinois. Farmers believe the big break in price since August has left corn undervalued, and with a decent price available for storing corn, farmers are not motivated sellers at this point, Good said. Only a trickle is coming out of on-farm storage bins keeping available nearby supplies tight as farmers are optimistic prices have further to rise. Farmers are also disappointed with cash prices not improving since the harvest.
The average cash price for corn from Sept. 1 to the end of November in St. Louis was $6.61 1/4 a bushel. Current St. Louis prices are trading near $6.60, still cheaper than the average bid at harvest. "Farmers not pressed for cash are not inspired to sell at a price below what they passed up in the fall," said Dave Marshall, an independent marketing advisor for farmers in southern Illinois. Most producers have plenty of cash from lucrative sales last fall and during the early winter, so there is generally no urgent need for cash flow at this point. With the low interest returns available from bank deposits, its a better investment for farmers to hold onto supplies, said Kim Craig, a merchandiser for Bell Enterprises, a privately owned group of grain elevators in Illinois.

Indonesia To Review India Rice Contracts On Delivery Delay (Source CME)
Indonesia will review contracts with Indian rice exporters who are seeking more time to deliver cargoes citing congestion at ports and bottlenecks in procuring grain from millers, trading executives and a Jakarta-based official said. "We will be reviewing the delivery schedule for cargoes from India, to decide whether any additional time needs to be given or impose a penalty for delayed shipments," state-run procurement agency Bulog's chief executive Sutarto Alimoeso told Dow Jones Newswires. Indonesia, which was the top importer in 2011, traditionally buys from Thailand and Vietnam. For the first time in several years, Bulog locked in a deal for 250,000 metric tons of Indian rice on Nov. 15 for delivery by mid-February. However, with two weeks to go, less than 100,000 tons have been shipped out and around 31,000 tons delivered, according to estimates of traders, port officials and cargo surveyors. Another 36,700 tons are being loaded and ships for loading 35,000 tons are waiting for berth at Indian ports.
"Due to infrastructural bottlenecks, we have sought two more weeks to complete deliveries," said Prem Garg, managing director of Shri Lal Mahal Ltd., which has a 100,000-ton contract with Bulog. Indonesia has also bought 100,000 tons from Amira Foods and 50,000 tons from Emmsons International. "Apart from a small cargo of 5,000 tons, all our orders from Bulog have been shipped out or are under loading and will be completed soon," an Emmsons executive said. An executive at Amira Foods didn't give details of shipments but Bulog officials said they haven't received any cargo from the company and only a ship with 6,000 tons is on high seas. Many Indonesian ports are difficult to access and arrangements had to be made for smaller vessels to deliver cargoes to Bulog, an Indian trading executive involved in the deals said. He added that Indian millers have also hiked the prices of 15% brokens due to the large Indonesian order.
Alimoeso said the government had given Bulog licenses to complete all imports by end-February and the agency had asked Indian exporters to deliver shipments by Feb. 15. Some shipments from Thailand are also pending but they will likely be completed this month, he said. Bulog has signed a memorandum of understanding with Myanmar Rice Industry Association to import up to 200,000 tons annually, if needed. Alimoeso said so far there are no plans to offset delay in deliveries from India by buying Myanmarese rice.

Indonesia's Sulawesi Jan cocoa bean exports fall -industry
JAKARTA, Feb 1 (Reuters) - Indonesia's cocoa bean exports from its main growing island of Sulawesi slipped 23 percent in January from the same month a year ago, and was down 26 percent from the previous month, industry data showed on Wednesday.
Sulawesi cocoa exports were at 8,904.25 tonnes in January from 11,634.66 tonnes a year ago, data from the Indonesia Cocoa Association showed. December exports were at 12,051.72 tonnes.

India coffee exports fall 7.5 pct in Oct-Jan
MUMBAI, Feb 1 (Reuters) - Coffee exports from India fell 7.5 percent to 79,021 tonnes in October-January on lower stocks and rising local demand. Arrivals from the new crop in coming months are expected to stem the fall, though.
In value terms, the exports rose to $243.05 million from $218.91 million a year ago, the Coffee Board said in a statement.

India releases 1.4 mln T sugar for Feb-sources
MUMBAI, Feb 1 (Reuters) - India has allowed millers to sell 1.4 million tonnes of sugar in the open market in February, 100,000 tonnes less than in January, government and industry sources said on Wednesday.
The government sets the quantity of sugar that millers can sell each month to control sharp swings in prices and ensure adequate supplies for the country's 1.2 billion people.

Global rubber output seen up 3.2 pct in 2012 -ANRPC
SINGAPORE, Feb 1 (Reuters) - Global natural rubber output is forecast to rise 3.2 percent in 2012 because of higher production in Vietnam, the Association of Natural Rubber Producing Countries (ANRPC) said on Wednesday.
The ANRPC pegged 2012 production at 10.450 million tonnes, up from 10.127 million tonnes last year and slightly higher than an earlier estimate of 10.415 million tonnes.

Exporters say boycott landmark I.Coast cocoa auction
ABIDJAN, Jan 31 (Reuters) - Ivory Coast's reform of its cocoa sector, vital for the country to obtain further debt relief, began in confusion on Tuesday as the regulator hailed the first two forward-sales auctions as a success while exporters said they had boycotted them.
Ivory Coast held as scheduled two auctions of the 2012-13 crop which is the first step in a move by the top grower away from a decade of liberalisation back to a price-regulated sector aimed at guaranteeing its farmers a price floor.

Al Khaleej Dubai refinery buys Indian sugar
LONDON, Jan 31 (Reuters) - The Dubai Al Khaleej sugar refinery, typically supplied by raw sugar from top producer Brazil, has recently bought more than 100,000 tonnes of Indian sugar, general manager Cyrus Raja said on Tuesday.
"The Indian raw sugar is refined and sold to the regular customers of Al Khaleej Sugar in the Middle East and North Africa region and other parts of the world," Raja told Reuters in an emailed interview before the Feb. 4-7 Kingsman Dubai sugar conference.

Brent rises above $111, Iran supply worries support
SINGAPORE, Feb 1 (Reuters) - Brent crude rose above $111 a barrel, gaining for a second straight session on fears that tensions between Iran and the West may escalate with U.S. lawmakers mulling more sanctions on Tehran, while promising China data also supported sentiment.
"There's the positive factor of supply worries from Iran and South Sudan while on the other side, we have a bearish factor from a weaker economy in Europe that will reduce oil demand," Ken Hasegawa, a commodity sales manager at Newedge Japan, said.

Oil Futures Decline a Fifth Day as U.S. Stockpiles Rise, Fuel Demand Slips (Source: Bloomberg)
Oil declined for a fifth day in New York, matching the longest losing streak since August, as U.S. crude stockpiles increased more-than-estimated and gasoline consumption fell to a 10-year low. Futures were down as much as 0.6 percent after settling yesterday at the lowest close in six weeks. Crude supplies rose by 4.2 million barrels last week, figures from the Energy Department showed. They were projected to increase 2.6 million barrels, according to a Bloomberg News survey. Oil rose earlier yesterday after manufacturing indexes from Germany to the U.S. increased. “It appears to be driven by U.S. domestic factors, the larger-than-expected increase in crude stockpiles and fall in gasoline demand,” said Ric Spooner, chief analyst at CMC Markets in Sydney. “In the short-term, it flies in the face of the run of reasonably positive data from the U.S.”

Indonesian Bourse Starts Trading Physical Tin Contract in Challenge to LME (Source: Bloomberg)
An exchange in Indonesia, the world’s largest tin exporter, started trading a physical contract today to create an alternative to the benchmark on the London Metal Exchange after twice delaying the initiative. The Indonesia Commodity & Derivatives Exchange, which offers palm oil and gold, had two lots of 5 metric tons each traded before the contract settled at $24,500 a ton. The introduction was delayed from Dec. 15 and Jan. 12 to allow potential users more time to prepare. Tin rallied 27 percent last month, the biggest gain since at least July 1989, as stockpiles fell. Indonesia represents about 40 percent of global exports, and the move to set up the new benchmark was supported by the government through the Commodity Futures Trading Regulatory Agency and PT Timah (TINS), the country’s biggest producer. At present, the LME, the world’s largest metals bourse, offers cash and futures trading in tin.

Steel Demand Slowing With Europe in Setback to ArcelorMittal: Commodities (Source: Bloomberg)
Steel demand worldwide is growing slower than forecast, eroding profit at producers including ArcelorMittal and Tata Steel Ltd. (TATA) and forcing investors to revise their 2012 outlook for the $430 billion industry. Global use of the alloy will rise 4.5 percent this year, less than the 5.4 percent forecast in October by the World Steel Association, according to the median estimate of 14 steelmakers, analysts and traders surveyed by Bloomberg. Growth may be as low as 1.2 percent, according to Bloomberg Industries analysts. The gain, the lowest in three years, is tempered by cooling economies in China and Europe, where orders for steel products for houses, cars and machinery are stagnating and will keep the alloy’s prices and overseas shipments muted, analysts said.

Iron Ore-Spot prices respond to China demand signals
BEIJING, Feb 1 (Reuters) - Chinese spot iron ore prices rose on Wednesday as traders drifted back to the market following the new year break amid signs that demand could start to pick up in the coming weeks.
Industry consultancy Umetal said Pilbara fines with 61.5 percent iron content were being offered at $141-143 per tonne cost and freight on Wednesday, up $2 from Tuesday.

US Steel offers improved outlook for 1st quarter
Jan 31 (Reuters) - U.S. Steel Corp posted a wider-than-expected quarterly loss on Tuesday but said it expects a better first quarter as it sold off its money-losing Serbian operations, European prices appear to have bottomed-out and end-user demand is ticking up.
The positive outlook in an industry that has been struggling to rebound from the recession sent the steelmaker's stock up nearly 5 percent to $30.19 on the New York Stock Exchange.

Gold Climbs to Eight-Week High as Dollar Drop, Europe Debt Fueling Demand (Source: Bloomberg)
Gold futures in New York climbed to the highest price in almost eight weeks as Europe’s lingering debt crisis and a weaker dollar spurred demand for the precious metal as an alternative asset. The dollar fell as much as 0.8 percent against a basket of six currencies. Gold jumped 11 percent last month, the biggest January gain since 1983, on mounting concern that Europe’s debt woes may lead to a recession, and after the Federal Reserve pledged to keep its benchmark U.S. interest rate low until at least late 2014 to spur growth. “Gold is trading like a hard currency,” James Dailey, who manages $215 million at TEAM Financial Management LLC in Harrisburg, Pennsylvania, said in an e-mail. “People are worried about currency debasement because of the credit easing by several countries.”

METALS-Copper steady, supported by firmer China PMI
SHANGHAI, Feb 1 (Reuters) - London copper traded steady on Wednesday, underpinned by Chinese data that reinforced Beijing's commitment to economic growth, but gains were capped ahead of data expected to show European and U.S. economies got off to a slow start in 2012.
Two separate surveys of Chinese manufacturing activity showed stuttering growth in the world's second largest economy. A government survey indicated a slight upturn in production in January, but a private sector report suggested factory activity shrank for a third month.

PRECIOUS-Gold steady; U.S., Europe data eyed
SINGAPORE, Feb 1 (Reuters) - Gold was steady on Wednesday after ending January with its biggest monthly rise since August, while investors eyed more data from the world's key economies for trading cues after China released a better-than-expected manufacturing survey number.
China's official Purchasing Managers' Index showed the manufacturing sector expanded modestly in January, with the index reading inching up to 50.5 from 50.3 in December, above a 49.5 reading forecast.

Global Shipping Prices Face More Choppy Waters (Source CME)
Times are tough for the shipping market. Freight rates hit a record low on weak demand for iron ore, poor weather conditions in mining regions and a glut of shipping capacity. The Baltic Dry Index, a composite of commodity shipping costs around the world, fell for a 32nd consecutive session to 662. The previous low, of 663, came in December 2008, during the depths of the credit crunch. But unlike the one three years ago, this slump reflects more than a sluggish global economy. A conflation of seasonal, environmental and demand-side factors accelerated the index's decline in recent months and could tip it further into the red. The index has plunged 59% this year alone and is down 94% from the peak reached just before the crisis hit. More than anything, this collapse "is due to excessive supply of ships and shipping capacity," said Beethowen Nepomuceno, who is responsible for ocean transport at commodities-trading company Cargill Inc.'s Sao Paulo's office.
Analysts and industry players expect the glut in shipping capacity to last for several years given that vessels often operate for around 25 years. But increased scrapping and the possibility that unprofitable shipping firms could be forced out of business should eventually lend some stability to prices, they said. "If old ships exit, that could start to correct the market," Nepomuceno said. "It's an eternal game of push and shove." A big factor depressing rates is the delivery of vessels ordered when the global economy was booming in the early-to-mid-2000s and credit was freely flowing, said Mark Williams, research manager at global shipbroking firm Braemar Seascope. "Companies saw China as a never-ending story and wanted to invest their profits in new shipping capacity," he said. Now those vessels are being delivered, yet the need for all of them is no longer as obvious. The order book currently stretches to 2015, according to industry analysts, with the majority of vessels due for delivery this year.
Other, more-recent factors have aggravated the situation. Unusually heavy rains in Brazil prompted mining giant Vale SA (VALE, VALE5.BR), which produces around 25% of the world's iron ore, to invoke a clause known as "force majeure" on Jan. 11 in some contracts to free itself from penalties on delayed shipments of ore, which is primarily used to make steel. That was lifted on Jan. 23, and mining and transportation resumed. In addition, demand for iron ore in China, which consumes more than half the world's iron-ore output, has been waning in recent months; inventories at Chinese ports are near record levels. China's crude-steel output climbed 8.9% in 2011 to 695.5 million metric tons, but growth should slow to 5% this year as Beijing's efforts to cool the economy continue to bite, according to market estimates compiled by London-based The Steel Index. In addition, the Lunar New Year holiday, which essentially shut down the country for a week in January, was a temporary brake on demand.
"The shipping market has been hit by a triple whammy of bad weather, weaker Chinese iron-ore demand and public holidays," Williams of Braemar Seascope said. A longer-lasting source of pressure is Vale's order for a fleet of 35 so-called Valemax vessels that can carry 400,000 deadweight tons, making them more than twice as large as Capesizes, the next-largest carrier, which typically carry up to 180,000 deadweight tons. The super-sized ships will be used on the company's Brazil-Asia route to compete more efficiently with nearer Australia shippers. Vale docked the first of the fleet, the Berge Everest, at China's Port of Dalian in late December, with a delivery of 350,000 tons of iron ore. China's shipping industry has lobbied against such ships, fearing they may strengthen Vale's dominance on the dry bulk market and China's Ministry of Transport has restricted access of the vessels into its ports.
"The vessels have been built, so the tonnage will be there," said an analyst at a shipping firm who declined to be named. "It's going to be a tough couple of years for the shipping market."

China ministry says to bar giant ships from ports
SHANGHAI, Jan 31 (Reuters) - China will no longer allow large ships exceeding approved capacities to dock at its ports, the Ministry of Transport said, effectively snuffing Brazilian miner Vale SA's hopes of sending its mega-ships to China.
Ships exceeding approved capacities were previously assessed on a case-by-case basis, but the ministry said in a statement on its website on Tuesday that giant dry bulk vessels and oil tankers were prohibited with immediate effect.

20120202 1018 Soy Oil & Palm Oil Related News.

2012-02-02T10:18:00.001+08:00

Soybeans (Source CME)
US soybean futures rallied, continuing to retrace losses from earlier in the week. Commodity friendly external market influences and confirmation of fresh export business with China fueled the price gains, analysts say. Buyers were also encouraged by continued uncertainty about South American crop potential, as private forecasters continue to lower their crop estimates, analysts say. Soybeans remain firmly planted within a month long wide trading range, with traders awaiting lasting fundamental direction. CBOT March soy ended up 16 1/4c at $12.15 1/4 a bushel.

Soybean Meal/Oil (Source CME)
Soy product futures finished higher, rising in step with advances in soybeans. The combination of a weaker US dollar, fresh Chinese demand for soybeans and lingering uncertainty about South American crop damage, buoyed soymeal and soyoil futures, analysts say. CBOT March soymeal ended up $3.00 at $322.30/short ton, and March soyoil finished up 0.31c to 51.18 cents/pound.

China To Add More Than 12 Mln Tons Soybean Crushing Capacity In 2012 (Source CME)
China, the world's largest soybean importer and consumer, will likely add more than 12 million metric tons of soybean crushing capacity this year, the state-backed China National Grain & Oils Information Center said. The nation's rapeseed oil crushing capacity is expected to increase by 3 million tons in 2012, it said in an email. China added more than 15 million tons of oilseed crushing capacity in 2011, marking the biggest expansion since 2004, the CNGOIC said. China's oilseed crushing sector is facing serious overcapacity.

20120131 1815 FCPO EOD Daily Chart Study.

2012-01-31T18:15:00.000+08:00

FCPO closed : 3078, changed : -4 points, volume : higher.
Bollinger band reading : little downside biased with possible pullback correction.
MACD Histrogram : falling, seller taking exposure.
Support : 3070, 3050, 3020, 2970 level.
Resistance : 3100, 3150, 3200, 3250 level.
Comment :
FCPO closed recorded tiny loss with rising volume participation. Soy oil price currently rebounding higher after overnight fall severely lower while crude oil price currently trading higher testing 100 resistance level.
Both ITS and SGS cargo surveyor reported improved but still declined month to month export data.
Daily chart reading remained suggesting a little downside biased market development with possible pullback correction.
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.

20120131 1747 FKLI EOD Daily Chart Study.

2012-01-31T17:47:00.002+08:00

FKLI closed : 1518, changed : +16 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : turned upward, buyer seller battling.
Support : 1505, 1500, 1494, 1485 level.
Resistance : 1515, 1530, 1540, 1550 level.
Comment :
FKLI closed rebounded higher after yesterday slump with lower volume changed hand with Feb 2012 contract doing 7.5 points discount compare to cash market that closed higher. Overnight U.S. market closed recorded marginal loss and today Asia markets traded higher while European markets current trading little higher.
Most European leader agreed on fiscal policy. progress over Greece debt deal and increased in Japan industrial production resulted global markets to rebound higher.
Technical reading suggesting a side way range bound market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

20120131 1717 Regional Markets EOD Daily Chart Study.

2012-01-31T17:17:00.000+08:00

DJIA chart reading : pullback correction upside biased.

Hang Seng chart reading : pullback correction upside biased.

KLCI chart reading : side way range bound little downside biased.

20120131 1655 Global Market & Commodities Related News.

2012-01-31T16:55:00.001+08:00

Shares, euro recover on Greek debt hope, Portugal weighs
TOKYO, Jan 31 (Reuters) - Asian shares and the euro recovered earlier losses after Greek Prime Minister Lucas Papademos raised hopes for a deal to be reached this week to avoid a default, but markets were starting to worry that Portugal might need a second rescue.
"After the rally, most Asian assets are undergoing some kind of consolidation, but there is still hope for some kind of an agreement reached and investors are delaying expectations about this talk," said Frances Cheung, senior strategist for Asia ex-Japan at Credit Agricole CIB in Hong Kong.

FOREX-Euro firms on Greek debt hopes; dollar at 3-mth low vs yen
SINGAPORE, Jan 31 (Reuters) - The euro rose on Tuesday, supported by hopes for a Greek debt restructuring deal that would help the country avoid a disorderly default, possibly setting itself up for a test of a key chart level.
The dollar extended its recent losses versus the yen and hit a three-month low, remaining under pressure after the U.S. Federal Reserve said last week it was likely to keep interest rates near zero at least until late 2014.

Relief in US food prices seen as crop supplies grow
CHICAGO, Jan 30 (Reuters) - After being hammered by record high food prices in 2011, which helped ignite the Arab Spring uprisings, consumers worldwide may find some relief in 2012 if U.S. farmers, induced by last year's high crop prices, plant more fields to grain this year.
Analysts polled by Reuters expect prices of corn, soybeans and wheat to tumble as much as 15 percent from a year ago, which will benefit companies that produce meat like Pilgrim's Pride Corp , Sanderson Farms and Tyson Foods Inc in terms of lower feed costs.

U.S. grains steady, nursing falls on Latam rains
SYDNEY, Jan 31 (Reuters) - U.S. grain futures were steady to firmer in early Asian trade, stabilising after heavy losses in the previous session when soy fell nearly 3 percent as the dollar gained on the euro zone debt crisis and on better-than-expected South American rainfall.
Crop-friendly rainfall of 0.50 to 1.5 inches is expected this week through all areas of Argentina which will benefit the soy crop in its key pod-setting phase and CORN.

China ban on Indian meal to benefit Canadian canola
BEIJING, Jan 30 (Reuters) - China will boost imports of rapeseed and rapeseed meal from Canada, traders said on Monday, after Beijing banned Indian meal after tests showed it contained a toxic chemical.
If China buys more rapeseed, or canola, from Canada, the world's top exporter, it could firm ICE canola prices , which have been rising for the past two weeks in anticipation of larger imports.

Brazil to breathe life into faded Cuban sugar sector
SAO PAULO, Jan 30 (Reuters) - Brazilian builder Odebrecht plans to produce sugar in Cuba, the company said on Monday, as looser restrictions on foreign investment in the communist island raise hopes of a recovery in the once-booming sector after decades of decline.
News of the project came on the day Brazil's President Dilma Rousseff begins a mostly ceremonial official visit to the country, which has been under communist rule since the Fidel
Castro-led revolution and an ensuing U.S. trade embargo.

Brazil soy harvest to speedup as rains shift south
SAO PAULO, Jan 30 (Reuters) - The soybean harvest is due to pickup speed in the coming weeks in the early maturing center-west states of Brazil, the world's No. 2 producer of the oilseed, as rains shift to the parched south where moisture is still needed.
The center-west is forecast to harvest a near-record crop this season due to excellent rain over the past weeks. States in the region such as No. 1 soy grower Mato Grosso and No. 4 Goias, are typically earliest to plant and harvest in Brazil.

Argentine grains shipping normal after boat dislodged
BUENOS AIRES, Jan 30 (Reuters) - Port authorities in Argentina's Rosario grains hub have dislodged a vessel that ran aground earlier this month, and all delayed ships have been able to set sail, an industry official said on Monday.
Argentina is one of the world's top suppliers of corn, soybeans and byproducts, and most its grains are shipped from the constellation of terminals around the city of Rosario.

ICCO pegs rise in global cocoa stocks
LONDON, Jan 30 (Reuters) - World cocoa stocks rose to 1.723 million tonnes as of Sept. 30 after bumper crops in West Africa helped produce a record surplus, according to the International Cocoa Organization's annual assessment.
Stocks were up by 295,000 tonnes on the year, with the majority held in importing countries, ICCO statistician Laurent Pipitone told Reuters.

OPEC says EU ban on Iran oil to boost prices
LONDON, Jan 30 (Reuters) - The EU's embargo on Iranian oil exports will add upward pressure to oil prices, OPEC's secretary general said on Monday, even though there is no shortage of oil on the market.
Abdullah al-Badri also said he was not concerned about too much oil in the market, even though the Organization of the Petroleum Exporting Countries is pumping about 600,000 barrels per day (bpd) more than its new target of 30 million bpd.

Brent rises above $111/bbl as supply trumps economy
SINGAPORE, Jan 31 (Reuters) - Brent crude inched above $111 a barrel, on track for its first rise in two months, as concerns over supply from Iran and South Sudan trumped worries about a global economic slowdown that could hit oil demand.
"Iran will make sure we see more upside than downside," Jeremy Friesen, a commodity strategist at Societe Generale said, although strong downside forces from the deteriorating economy capped gains.

London copper gains on outlook for long-term demand
KUALA LUMPUR, Jan 31 (Reuters) - London copper inched up, heading for its biggest gain in three months, on cautious optimism that demand for the industrial metal will rebound this year with Asian economies generally resilient in the face of global financial turmoil.
Asian economies remain "generally resilient" in the face of global financial turmoil and a growing debt crisis in the euro zone, the IMF's top official for Asia and the Pacific said on Monday.

Chile December copper output up but 2011 total output falls
SANTIAGO, Jan 30 (Reuters) - Chile's copper output jumped in December from the same month a year earlier but clocked a 3.2 percent drop in 2011 from a year earlier as falling ore grades, labor woes and weather problems hammered the world's top producer, the government said on Monday.
Chile, which provides around one-third of the world's copper, produced 509,407 tonnes of the red metal in December , up 2.2 percent from the same month of 2010, the government statistics agency INE said. Chile produced 5.24 million tonnes of the red metal in 2011, down 3.2 percent from the previous year, according to the INE.

Japan Dec zinc exports up 44 pct yr/yr on China
TOKYO, Jan 30 (Reuters) - Japan's exports of refined zinc surged 44 percent from a year earlier to 12,273 tonnes in December as exports to China more than doubled, customs-cleared data showed on Monday.
Exports to China increased to 4,504 tonnes, up from 1,753 tonnes a year before, accounting for a third of Japan's total exports.

Italy's steel exports up, lag import volumes
MILAN, Jan 30 (Reuters) - Steel exports from Italy, the European Union's second-biggest producer after Germany, rose 12.5 percent year on year to 15.882 million tonnes in the first 11 months of 2011, but lagged behind import volumes, industry body Federacciai data showed on Monday.
Italy's export-focused steel industry has come under growing pressure from non-EU rivals in the past few years and, facing modest demand on core markets, needs to rethink its product range and consolidate, analysts say.

Silver coin sales hit record pace, outshine gold
NEW YORK, Jan 30 (Reuters) - Less than one year after silver's breathtaking collapse from its record-setting rally, investors are again snapping up coins at an unprecedented pace, suggesting the white metal could leave gold in the dust.
Even before the U.S. Federal Reserve's promise of further stimulus rejuvenated interest in precious metals last week, U.S. retail investors were already buying up freshly minted coins in droves, undaunted by last year's painful volatility. Gold coin sales, while rising, have been far less robust.

Gold edges up; heads for biggest monthly gain since Aug
SINGAPORE, Jan 31 (Reuters) - Gold ticked up after the euro recouped some losses, while bullion prices headed for their biggest monthly rise since August as lingering concerns about growth in the United States prompted buying from investors.
"Sentiment seems to have improved quite tremendously, I would say. We are now into more bullish territory, more than ever, with the Fed providing enough fundamental support," said Dominic Schnider, head of commodity research at UBS Wealth Management.

METALS-London copper gains on outlook for long-term demand
KUALA LUMPUR, Jan 31 (Reuters) - London copper inched up on Tuesday, heading for its biggest gain in three months, on cautious optimism that demand for the industrial metal will rebound this year with Asian economies generally resilient in the face of global financial turmoil.
Three-month copper on the London Metal Exchange climbed 0.22 percent to $8,447.75 a tonne by 0117 GMT, after its biggest decline in more than a week in the previous session.

PRECIOUS-Gold edges up; heads for biggest monthly gain since Aug
SINGAPORE, Jan 31 (Reuters) - Gold ticked up on Tuesday after the euro recouped some losses, while bullion prices headed for their biggest monthly rise since August as lingering concerns about growth in the United States prompted buying from investors.
Gold jumped nearly 5 percent last week, its fourth consecutive weekly gain, after the U.S. Federal Reserve pledged to keep interest rates near zero until at least late 2014, which could put pressure on the dollar.

20120131 1050 Global Market & Commodities Related News.

2012-01-31T10:50:00.001+08:00

GLOBAL MARKETS-Shares, euro capped by Greek deal, Portugal
TOKYO, Jan 31 (Reuters) - Asian shares and the euro struggled on Tuesday as stumbling talks on Greek debt restructuring reignited concerns over funding in other highly indebted countries, with markets starting to worry that Portugal might need a second bailout.
"Even if the Greece secures a Private Sector Initiative deal and meets its 14.5 billion euro payment on March 20, the fiscal and growth objectives of the austerity efforts in Athens and Rome have yet to be mulled by IMF monitors, not to mention the liquidity difficulties encountered by Portuguese sovereign bonds," he said.

Oil falls on euro zone worry, eyeing Iran
NEW YORK, Jan 30 (Reuters) - Oil prices fell on Monday as stalled negotiations on a deal to restructure Greece's debt revived concerns about the economy while the risk that Iran might quickly halt crude exports to Europe limited losses.
"Today's downdraft was largely explained by a renewed risk-off trade that saw both the euro and the equities slide," Jim Ritterbusch, president at Ritterbusch & Associates, said in a note.

POLL-U.S. crude stocks seen up as imports rise
Jan 30 (Reuters) - U.S. crude oil inventories were expected to have risen last week for the second straight time due to a further recovery in imports, a preliminary Reuters poll of analysts showed on Monday.
Ahead of the weekly inventory reports, four of the six analysts polled expected a build in crude stockpiles for the week to Jan. 27, with the average forecast coming to 1.5 million barrels.

OPEC says EU ban on Iran oil to boost prices
LONDON, Jan 30 (Reuters) - The EU's embargo on Iranian oil exports will add upward pressure to oil prices, OPEC's secretary general said on Monday, even though there is no shortage of oil on the market.
Abdullah al-Badri also said he was not concerned about too much oil in the market, even though the Organization of the Petroleum Exporting Countries is pumping about 600,000 barrels per day (bpd) more than its new target of 30 million bpd.

China, Japan scramble for oil as Sudan shuts fields
SINGAPORE, Jan 30 (Reuters) - The shutdown in Sudanese oil supply could drive up already record premiums on spot crude markets as top Sudan customers China and Japan scramble for alternatives even as they weigh the impact on oil flows of international sanctions on Iran.
South Sudan has shut down its oil output, estimated at around 350,000 barrels per day (bpd), as it and neighbour Sudan row over how to disentangle their oil industries, borders and debt.

US natgas finishes lower on mild weather forecasts
NEW YORK, Jan 30 (Reuters) - U.S. natural gas futures reversed course and ended down slightly on Monday, as mild midweek weather forecasts offset some early follow-through buying and short covering after last week's strong gains.
"I think we saw a little short-covering after last week, but there's still a lot of doubt about how quickly producers will cut and how much of an impact that will have," said Steve Platt, analyst at Archer Financial in Chicago.

Euro Coal-Cold weather boosts coal, power, gas
LONDON, Jan 30 (Reuters) - Freezing weather across much of Europe boosted gas, coal and power futures prices on Monday while technical indicators suggest that the downtrend of the past few months may be over, utilities and traders said.
"It's all anticipation of what this cold weather could do to demand and prices across the markets, it's self-reinforcing," said Emmanuel Fages, analyst with Societe Generale in Paris.

COMMODITIES-Markets sink on dollar rally; soy, cocoa tumble
NEW YORK, Jan 30 (Reuters) - Most commodities closed lower on Monday as a strong dollar crushed raw materials priced in the currency, while crops such as soybeans and cocoa were further hurt by potential oversupplies and by demand concerns.
"It's difficult to see how this rally can continue," Jesper Dannesboe, a senior commodities strategist for Societe Generale, said, referring to copper.

20120131 1006 Global Economic Related News.

2012-01-31T10:06:00.004+08:00

With effect from 31 Jan 2012, Bank Negara Malaysia (BNM) further liberalised its foreign exchange rules, in a move to develop the domestic financial markets. The liberalisation measures are: Licensed onshore banks are permitted to trade foreign currency against another foreign currency with a resident. A licensed onshore bank is allowed to offer ringgit-denominated interest rate derivatives to a non-bank non-resident. Flexibility is permitted for a resident to convert their existing ringgit or foreign currency debt obligation into a debt obligation of another foreign currency. (BNM)

Malaysia will remain the key destination for Singaporeans to spend their holidays due to its close geographical proximity and cordial bilateral ties with the country, said Tourism Malaysia director for Singapore, Zalizam Zakaria. In 2010, Malaysia received 24.6m tourists, who spent RM56.5bn. Of the total, Singaporeans accounted for RM28.4bn, with 13m arrivals, he said. (Bernama)

Japan: Industrial production increases more than expected

Japan’s industrial production increased more than analysts forecast in Dec, as manufacturers bolstered production to make up for disruptions caused by Thailand’s worst floods in 70 years. Factory output rose 4% from Nov, when production slid because of supply disruptions, the trade ministry said in Tokyo. Manufacturers from Honda Motor to Toyota Motor are optimistic about demand as they recover from a year of natural disasters at home and in Thailand. The report indicates companies are resilient to the stronger currency and a slowing global economy. [Bloomberg]

China's Premier Wen Jiabao said government debt is at an "overall safe and controllable" level, that funding for key projects would be ensured and that applying the brakes to the economy would be done in a way to avoid systemic risks. (Reuters)

Chinese banks extended a total of Rmb1.26tr (US$199.4bn) in new loans to property developers and home buyers in 2011, down 38% from 2010, the central bank said. (Reuters)

The International Monetary Fund is reviewing whether China's currency should still be considered "substantially undervalued," in light of its rapid rise in the past year. The IMF has called China's currency "substantially undervalued" for the past half-decade. (WSJ)

The People’s Bank of China postponed the much-anticipated cut in lenders’ reserve requirements, but instead injected Rmb353bn (US$55.9bn) into the financial system using 14-day reverse-repurchase contracts, the most since Bloomberg began collecting such data in 2008. (Bloomberg)

The State Bank of India said the Indian government has agreed to inject up to 79bn rupees (US$1.6bn) into it via preferential shares, but did not mention when that would take place. The government currently owns 59.4% of SBI, but is making this decision as rising bad loans and a surge in provisions weigh on the bank's profitability, and have raised concerns on whether the lender has sufficient capital. (WSJ)

South Korea: Output declines as Europe crisis saps demand
South Korea’s industrial production fell for a third month in December as Europe’s sovereign-debt crisis hurt exports and business confidence. Output declined 0.9% from Nov, when it dropped a revised 0.3%, Statistics Korea said. South Korea, which grew the least in two years in the fourth quarter, is facing increased uncertainty from Europe’s debt crisis, Finance Minister Bahk Jae Wan said. The Bank of Korea refrained from raising interest rates for a seventh month on 13 Jan to support growth amid faltering global expansion and signs of easing inflation. [Bloomberg]

S. Korean finance minister Bahk Jae-Wan called for early negotiations on a free trade pact with China so Seoul can compete against Taiwan in the lucrative Chinese market, saying that a sweeping China-Taiwan free trade agreement signed last year will put South Korean firms, which compete against Taiwanese firms in many sectors and most notably information technology, at "a great disadvantage." (AFP)

The Philippines grew 3.7% yoy in 4Q (3.6% in 3Q). GDP growth increased 0.9% qoq (0.8% in 3Q). The median estimates were for a 3.8% yoy and 0.1% qoq. For 2011, the Philippine economy expanded 3.7% compared with a 7.6% increase in 2010, missing the government‟s official 12-month target of 4.5-5.5%. (Bloomberg, Philippine Daily Inquirer)

Indonesia’s government clarified that the option of raising the subsidized fuel oil price is still being discussed. Armida S Alisjahbana, National Development Planning Minister, said that the government is studying the drafting of a more accurate subsidy policy. (Indonesia Finance Today)

Thailand is looking to assist companies in the seven industrial estates inundated late last year by revising the terms of THB15bn in soft loans, with two-thirds of the money given away and the rest offered as soft loans carrying interest of 0.01% and a maximum 15-year repayment period. (Bangkok Post)

The Thai government will work with the private sector on forging a four-year tourism strategy to restore confidence in Thailand and prepare the country for the Asean Economic Community in 2015. (The Nation)

Thailand’s growth should stand at -5% in 4Q11 and 1.1% for 2011, Fiscal Policy Office director general Somchai Sujjapongse said. (Bangkok Post)

A poll by Bangkok University found that the economic confidence level in Thailand stood at 28.41, pressured by uncertainties in exports, private investment and tourism in the aftermath of floods. Outlook for the next three and six months should increase, as the expectation confidence was 63.41 and 72.19, respectively. (The Nation)

EU: Sarkozy transaction tax may drive investors from French stocks
The French stock market, Europe’s second-biggest by value, may fall out of favor with investors after President Nicolas Sarkozy unveiled plans to unilaterally impose a 0.1% tax on financial transactions. Sarkozy, who faces elections in a two-round vote in Apr and May, wants to make good on a pledge he made to impose such a tax when France last year held the presidency of both the G-8 and G-20 group of countries. He said on 29 Jan that France will impose the levy starting in Aug in spite of opposition from banks. The tax will apply to share purchases, including high frequency trading, and credit default swap transactions. [Bloomberg]

EU: Stumbles on Greek plan as Merkel signals debt deal delay
European leaders sparred with Greece over a second rescue program, clouding progress toward a permanent aid fund and tougher budget rules designed to stabilize the Euro. Greece faced criticism that its economic makeover is faltering, and it fended off German-led calls for a European overseer to take command of its budget after its deficits surpassed targets for two years. Bargaining with Greece over a debt writedown and its economic management threatened to overshadow a summit meant to point the way out of the financial crisis by speeding the set-up of a full-time EUR500bn (USD654bn) rescue fund. [Bloomberg]

European leaders have agreed to back a fiscal discipline treaty, whereby Euro zone countries would be legally bound to balance national budgets over time. The treaty aims to force Euro zone countries with high debt levels to bring budget deficits down to 0.5% of GDP. The treaty, which will be formally signed in Mar, is the first move in a carefully orchestrated strategy to win back market confidence. The treaty will come into force on 1 Jan 2013 provided 12 countries have ratified it by then. The second step is likely to come in mid-Feb, when EU officials hope to resolve the gap in Greece‟s budget. (FT)

The EU Summit is expected to announce up to €20bn (US$26.4bn) of unused funds from the EU's 2007-2013 budget will be redirected toward job creation and free up bank lending to small- and medium-sized companies. (Reuters)

A draft of the EU summit communiqué calls for "growth-friendly" consolidation and job-friendly growth,‟‟ an indication that EU leaders have come to realize that austerity measures, like those being put in countries like Greece and Italy, risk stoking a recession and plunging fragile economies into a downward spiral. (NY Times)

The European Commission's economic sentiment indicator rose by 0.6 pts to 93.4, the first improvement in sentiment since Mar 2011 as some confidence returned to services, consumers and construction. (Reuters)

US: Consumer spending stalls as Americans lift savings
Consumer spending stalled in December as Americans took advantage of a jump in incomes to restore depleted savings, indicating households remain focused on repairing finances. Purchases were little changed after rising 0.1% the prior month, Commerce Department figures showed in Washington. The median estimate of 77 economists surveyed by Bloomberg News called for a 0.1% increase in sales. Incomes climbed by the most in almost a year, pushing the savings rate to a four-month high. [Bloomberg]

US: Treasury cuts quarterly borrowing estimate 18% to USD444bn
The US Treasury Department lowered its borrowing estimate for the current quarter by 18% to USD444bn, reflecting higher receipts and lower spending. The Treasury reduced its net borrowing estimate for January through March by USD97bn from a projection of USD541bn three months ago. US Treasury officials also see net borrowing of USD200bn in the second quarter. The estimates set the stage for the Treasury’s quarterly refunding announcement on 1 Feb. [Bloomberg]

The US Architecture Billings Index held at 52 last month, a sign of expansion. The commercial and industrial component, a proxy for private building activity, climbed to 54.1 in Dec. (Bloomberg)

More than two-thirds of US banks in a Federal Reserve survey of senior loan officers said they had tightened credit to European financial firms in Jan, underscoring the continent's severe banking crisis. Domestic lending standards were largely unchanged this month, while loan demand picked up somewhat. (Reuters)

20120131 1006 Malaysia Corporate Related News.

2012-01-31T10:06:00.003+08:00

Tenaga Nasional Bhd (TNB) CEO Datuk Seri Che Khalib Mohd Noh will be calling it quits when his contract expires in June this year after heading the national utility for the past seven years. “In any organisation, you need new faces,” he told StarBiz. “I am recommending a new face ... the organisation needs a fresh face. It is like that in any organisation. If a person stays on for too long, people tend to get bored with him.” The board has accepted Che Khalib's request for his contract not to be renewed and has begun finding a replacement. “It is entirely up to the board to decide. It is getting consultants to identify the candidates; the process started last month (when Che Khalib indicated his request not to be renewed). “The priority would probably be internal candidates; naturally, the most suitable person would be the current chief operating officer/executive director Datuk Azman Mohd. But ultimately, it is up to the board whether it is an internal or external candidate,” he said. (Star Biz)

DRB-HICOM Bhd is understood to have hosted two Volkswagen AG Group directors last Thursday. Business Times understands that the two met key stakeholders of DRB-HICOM, including its top management. “They also reviewed all Proton Holdings Bhd‟s models,” said a source. It is understood that the Volkswagen directors were here to evaluate the possibility of having a collaborative technical agreement on technology transfer with Proton. “This is the first step and I think that there will be many more such meetings before a deal could be struck,” said the source. (BT)

Malaysia is prepared to submit comments to the US Environmental Protection Agency (EPA), criticising its recent actions which could lead to a trade war of commodities. EPA analysis shows that biodiesel and renewable diesel produced from palm oil from Malaysia and Indonesia do not meet the minimum 20% lifecycle Greenhouse-gases reduction threshold needed to qualify as renewable fuel under the Renewable Fuel Standard (RFS) programme. (BT)

CIMB Group Holdings Bhd is optimistic new regulations under consideration in Indonesia won't force it to dump its controlling stake in its Indonesian banking subsidiary. The group's chief executive Nazir Razak said CIMB is hoping it will be able to hold on to its 97% stake in Indonesia's fifth-largest bank, CIMB Niaga. (WSJ)

Transparency International Malaysia (TI-M) has expressed concern over the apparent lack of transparency and proper procedure in the awarding of the RM7.07bn West Coast Expressway concession project. Its president, Datuk Paul Low said this mega project would involve massive public financing of a soft loan of RM2.24bn and payment of RM980m for land acquisition, and an unprecedented 60-year toll concession. “TI-M views with concern the apparent lack of transparency and proper procedure in the award. Given the public funding and long concession period, there could have been proper governance and transparency in the award through an open, transparent and competitive procurement process and public disclosure of the terms and conditions of the contract,” he said in a statement. (Financial Daily)

AirAsia Bhd flew 29.86m passengers in 2011, up 16.27% from 25.68m the previous year. The carrier carried 7.93m passengers, a 12.3% increase in 4QFY11. Its capacity also rose 13.5% to 37.5m while load factor increased to 80%, up 2%. Reuters reported that Southeast Asian carriers are expected to cash in on the increasing interest from both business and leisure travelers in Myanmar, which in recent months has announced some democratic reforms. Thai AirAsia is looking to add new routes into Mandalay and Bagan, Myanmar‟s inland cultural centres. (Financial Daily)

Wah Seong is confident of securing at least RM1.5bn of its current tenderbook of RM4.9bn, mostly in international oil and gas service projects. Managing director Giancarlo Maccagno said based on its track record, the company has a 20%-30% success rate on tenders. The company‟s current order book stands at RM1.3bn. Maccagno said the company is keen on merger & acquisition (M&A) to grow the company and is always in the process of reviewing possible opportunities. He said Wah Seong is currently in discussion with a potential company for a M&A. (Malaysian Reserve)

Ekovest will soon add Duta-Ulu Kelang Expressway (Duke) into its books under a RM325m share swap deal. Ekovest will issue 126.7m new shares at an issue price of RM2.75 each in return for a 100% stake in Wira Kristal Sdn Bhd. Wira Kristal owns 70% of Nuzen Corp Sdn Bhd, which has a 34-year concession of Duke. The new Ekovest shares will be issued to Wira kristal owners Datuk Lim Kang Hoo and Datuk Haris Onn Tun Hussein. Currently, the Duke is revenuegenerating and cash flow-positive, Ekovest said. (BT)

Bank Muamalat Malaysia Bhd will focus on increasing the number of non-Muslim customers to enhance the market of various Islamic banking products and services. Chairman Tan Sri Dr Mohd Munir Abdul Majid said that presently, the percentage of non-Muslims using Bank Muamalat's services was 20% for the deposits segment and 40% for the financing segment. (Bernama)

Soon-to-be-listed Sentoria Group Bhd is in talks with state-owned investment fund Permodalan Nasional Bhd (PNB) to develop an integrated resort (IR) city in Morib, Selangor. Sentoria is the developer and operator of the Bukit Gambang Resort City (BGRC) in Kuantan, Pahang. The company is slated to be listed on the Main Market of Bursa Malaysia on Feb 23. A source familiar with the matter said an agreement between Sentoria and PNB is expected to be sealed soon. "The discussions are in an advanced stage to develop recreational and supporting elements such as theme parks and MICE (meeting, incentive, convention and exhibition) facilities there on a joint venture (JV) basis. The project will involve developing at least 80ha of land owned by PNB," the source told SunBiz. "Under the JV, Sentoria will emulate the integrated property development concept of BGRC and bring it to Morib." It is understood that the proposed project is part of Morib Beach Resort, a 320ha development project of which PNB Deve
lopment Sdn Bhd, a unit of PNB, is the master developer. (Sun)

MASkargo Sdn Bhd, which received its third Airbus A330-200F yesterday, is targeting RM2.4bn in revenue for the financial year ending Dec 31, 2012, driven by increased trade in intra-Asian markets, said its acting CEO Mohd Yunus Idris. For last year, MASkargo is expected to achieve a revenue of over RM2bn. "We are still in the closing period and will be announcing our results for financial year 2011 soon. We are expecting revenue to exceed RM2bn," he said, adding that in 2010, MASkargo posted RM2.4bn in revenue. (Sun)

Datuk Goh Tian Chuan‟s special purpose vehicle Temasek Formation Bhd (TFB) has received the Securities Commission‟s approval to merge Jotech Holdings Bhd, and AIC Corporation Bhd and AutoV Corporation Bhd. The proposed merger of the three companies for a total consideration of about RM696m would be satisfied via the issuance of new Temasek Formation shares. Goh, who is the group executive chairman of Jotech and AIC, described the SC approval as “an important milestone for the three PLCs and will leverage the groups plans to achieve greater heights”. When completed, the merger would create a larger group in terms of market capitalisation, streamline the multi-tiered shareholding structure and unlock potential intrinsic values. “The full value of the business potential of Jotech, AIC and AutoV is expected to be accurately reflected at TFB level,” he said. (Financial Daily)

QSR Brands Bhd has acquired 1.6m units of Al-Aqar Healthcare REIT from the open market for a total purchase consideration of RM1.9m. The purchase was funded by internally-generated funds. Rationale for the purchase was the opportunity for capital appreciation given Al-Aqar‟s future acquisition plans and its stable income stream from tenants. (BMSB)

Malaysia and Singapore are combining efforts and resources in a strategic entertainment and media industry alliance to penetrate the global market. To jumpstart the initiative, Singapore's Media Development Authority (MDA) will be leading 33 entertainment and media companies to Kuala Lumpur from Jan 30 to Feb 1, and they will be hosted and facilitated by Malaysia’s National Film Development Corporation (FINAS). In a statement, Global Creative and Media Agency (GCMA) said FINAS and MDA have been in talks towards concretising a co-production agreement since October last year. (BT)

IJM Corp to raise stake in KEuro
The potentially huge contracts spin-off from the RM7.07bn West Coast Expressway (WCE) project has spearheaded IJM Corp into the spotlight. But not to be forgotten is Kumpulan Europlus (KEuro), which could see more corporate exercises. “For a bigger exposure to the WCE concession, IJM Corp is likely to increase its stake in KEuro, which is now only 22.7%. It may not want to privatise KEuro, but certainly it may want to have a bigger shareholding in the company,” said a market observer. (Financial Daily)

New management team for Proton likely following takeover
Speculation over the future of the top management at Proton Holdings has surfaced with reports indicating that DRB-Hicom is keen to get its own people in the top posts of the national carmaker. News reports quoting sources said DRB-Hicom was keen to reshuffle Proton's management in the next two to three weeks. Current Proton chairman Datuk Seri Mohd Nadzmi Mohd Salleh and managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir are said to be on top of the list of those to be replaced. (StarBiz)

MAHB plans share placement to raise RM598.4m
Malaysia Airports Holdings (MAHB) plans to raise RM598.40m from a proposed share placement to finance the new low cost carrier terminal at Kuala Lumpur International Airport (KLIA2). MAHB said it planned to issue 110m new shares, which was up to 10% of its issued and paid-up share capital, to investors to be identified via a book building exercise. RM590m would be used to part finance the additional capex for KLIA2 while the remaining RM8.4m would be used to defray expenses relating to the proposed private placement. (Financial Daily) Please see accompanying report

SC committee shot down general offer for E&O
SC task force and its senior management had recommended that Sime Darby triggered the mandatory offer obligation for the remaining shares in E&O, but the recommendation was not agreed upon by the takeovers and mergers committee. The task force recommended that a new party acting in concert be formed between Sime Darby’s wholly-owned Sime Darby Nominees SB (SDN) and Datuk Terry Tham. Both collectively held more than 33% of the voting shares in E&O. (Financial Daily)

USD330m BDSN loan boosts Maybank's reach
The Maybank Group has concluded the syndication of a USD330.6m (RM1bn) term facility for Indonesia's PT Bajradaya Sentranusa (BDSN). The 10-year facility is segregated into dual-currency conventional tranches of USD187.5m (RM570m) and IDR400bn (RM126m) as well as USD100m (RM304m) in an Islamic tranche. Proceeds will be used to take over the entire existing project loans for the construction of the 2x90 megawatt Asahan 1 Hydroelectric Power Plant (Asahan 1 Hydroplant) located in North Sumatra, Indonesia, said Maybank in a statement. (BT)

20120131 1002 Global Market Related News.

2012-01-31T10:02:00.001+08:00

Asian Stocks Swing Between Gains, Losses on Europe, Japan Production Data (Source: Bloomberg)
Asian stocks swung between gains and losses as European leaders failed to complete a Greek rescue program, U.S. consumer spending stalled and Japan’s industrial production grew faster than estimated last month. Canon Inc., the world’s biggest camera maker, sank 4.5 percent after its president resigned amid forecasts for slowing net income growth to miss estimates. Daewoo Shipbuilding & Marine Engineering Co., a South Korean shipbuilder, gained 4.2 percent after winning a $556 million contract to supply tankers to Kuwait Oil Tanker Co. The MSCI Asia Pacific Index (MXAP) added 0.2 percent to 122.39 as of 9:41 a.m. in Tokyo, having swung between gains and losses at least eight times. The measure has risen the past six weeks, the longest streak since a seven-week stretch that ended Oct. 15, 2010, amid bets China will ease lending curb, the U.S. economy is improving and Europe is containing its debts crisis.

Japanese Stocks Snap Three-Day Drop as Greece Makes Progress in Debt Talks (Source: Bloomberg)
Japanese stocks rose, snapping a three-day losing streak, after Greece’s Prime Minister said major progress had been made in debt talks with bondholders. Mazda Motor Corp. (7261), a carmaker that gets almost a fifth of its sales from Europe, climbed 1.6 percent. Advantest Corp. (6857), the world’s biggest maker of memory-chip testers, jumped 5 percent after Daiwa Securities Group Inc. raised the stock’s rating. Fanuc Corp. (6954), Japan’s top manufacturer of factory robots, rose 1.4 percent after the nation’s industrial production increased more than expected. The Nikkei 225 Stock Average rose 0.3 percent to 8,820.29 as of 10:07 a.m. in Tokyo. The broader Topix Index added 0.1 percent to 757.80, after falling as much as 0.3 percent earlier as European leaders yesterday struggled to complete a Greek rescue package.

U.S. Stocks Decline Amid Concern About Greek Debt Negotiations (Source: Bloomberg)
U.S. stocks fell, sending the Standard & Poor’s 500 Index lower for a third day, as European leaders sparred with Greece over a second rescue program. Equities pared declines as some of the biggest technology companies rallied. Apple Inc. (AAPL) and Microsoft Corp. (MSFT) added at least 1.2 percent. Bank of America Corp. (BAC) fell 3 percent after Goldman Sachs Group Inc. cut its recommendation. Halliburton Co. (HAL) and Chesapeake Energy Corp. dropped more than 1.1 percent as oil slumped. Gannett Co. (GCI), the owner of 82 newspapers including USA Today, tumbled 6.9 percent as its profit plunged 33 percent. The S&P 500 decreased 0.3 percent to 1,313.01 at 4 p.m. New York time. The benchmark index for American equities trimmed a decline of as much as 1.2 percent. The Dow Jones Industrial Average retreated 6.74 points, or 0.1 percent, to 12,653.72.

European Stocks Fall Most in Six Weeks; BNP Paribas Tumbles on French Tax (Source: Bloomberg)
European stocks dropped the most in six weeks as Portuguese bonds sank amid concern a meeting of the region’s leaders will fail to draw a line under the sovereign- debt crisis. BNP Paribas SA (BNP) tumbled 7.1 percent, leading French banks lower, as President Nicolas Sarkozy said he will unilaterally impose a financial-transaction tax. Royal Philips Electronics NV (PHIA) fell 2.2 percent after reporting a larger-than-estimated loss. Hochtief AG (HOT) slid 5.8 percent after saying it will post a wider annual loss than previously anticipated. The Stoxx Europe 600 Index retreated 1.1 percent to 252.52 at the close of trading, the largest slide since Dec. 14. The benchmark gauge has still rallied 18 percent from its Sept. 22 low as the U.S. economy maintained its recovery and speculation grew that the euro area will contain the sovereign-debt crisis.

U.S. Lowers First-Quarter Borrowing Estimate (Source: Bloomberg)
The U.S. Treasury Department lowered its borrowing estimate for the current quarter by 18 percent to $444 billion, reflecting higher receipts and lower spending. The Treasury reduced its net borrowing estimate for January through March by $97 billion from a projection of $541 billion three months ago. U.S. Treasury officials also see net borrowing of $200 billion in the second quarter. The estimates set the stage for the Treasury’s quarterly refunding announcement on Feb. 1. An accelerating economy is boosting tax revenue, helping the administration of President Barack Obama control a budget deficit it forecasts will narrow to $956 billion this fiscal year. Gross domestic product expanded at a 2.8 percent annual pace in the fourth quarter of last year, the most since the second quarter of 2010.

U.S. Consumer Spending Stalls as Savings Rise (Source: Bloomberg)
Consumer spending stalled in December as Americans took advantage of a jump in incomes to restore depleted savings, indicating households remain focused on repairing finances. Purchases were little changed after rising 0.1 percent the prior month, Commerce Department figures showed today in Washington. The median estimate of 77 economists surveyed by Bloomberg News called for a 0.1 percent increase in sales. Incomes climbed by the most in almost a year, pushing the savings rate to a four-month high. The data illustrate the importance of sustained gains in jobs and wages to ensuring the growth of household purchases, the biggest part of the economy. The weak end to the quarter makes it more likely that consumer spending will cool early this year, underscoring the Federal Reserve’s decision to leave interest rates low until 2014.

Longest S&P 500 Valuation Slump Since Nixon Discounts Profit (Source: Bloomberg)
Valuations for U.S. equities have been stuck below the five-decade average for the longest period since Richard Nixon’s presidency, a sign investors don’t trust earnings even after a three-year bull market. Analysts estimate profits in the Standard & Poor’s 500 Index will reach a record $104.78 this year after increasing 125 percent since the end of 2009, the fastest expansion in a quarter century, according to data compiled by Bloomberg. American companies are boosting income so much that even after stocks doubled, the S&P 500 hasn’t traded above its 16.4 mean ratio for 446 days, the longest stretch since the 13 years beginning in 1973.
Battered by the 14 percent decline in the S&P 500 since 2000, the worst financial crisis since the Great Depression and the so-called flash crash 21 months ago, investors are staying away from stocks, even after record profits, 10 quarters of U.S. economic growth and promises by the Federal Reserve to keep interest rates near zero through 2014. Of the $37 trillion erased from global equities in the credit crisis, $24 trillion has been restored.

Fed Says Business-Loan Demand Climbed Last Quarter as Economy Accelerated (Source: Bloomberg)
Demand for business loans increased in the fourth quarter as economic growth accelerated, according to a Federal Reserve survey of senior loan officers at banks. Seventeen of 56 banks reported stronger demand among companies with $50 million in annual sales or more, according to the survey released today in Washington, while six reported weaker demand. Demand among small businesses for loans increased by the most in any quarter since 2005. Economic growth accelerated last quarter to a 2.8 percent annual rate, the fastest pace since the second quarter of 2010. The expansion still isn’t strong enough to push down an unemployment rate that has been at 8.5 percent or higher for 34 consecutive months, prompting the Fed last week to say its benchmark interest rate will be kept near zero until at least the end of 2014.

WTO Rejects Chinese Appeal of Ruling Against Mineral Curbs (Source: Bloomberg)
World Trade Organization judges rejected China’s appeal of a ruling that found restrictions on exports of nine raw materials break global rules and give the country’s manufacturers an unfair edge over competitors. The WTO concluded on July 5 that Chinese quotas, export duties and license requirements on overseas shipments of industrial ingredients including coke, zinc and bauxite are discriminatory. The restrictions have stoked tensions between China and its trading partners, which accuse the Chinese government of having unfair commerce and currency policies. U.S. Trade Representative Ron Kirk called the Appellate Body report a “tremendous victory,” particularly for manufacturers and workers. The decision “ensures that core manufacturing industries in this country can get the materials they need to produce and compete on a level playing field,” Kirk said in an e-mailed statement from Washington.

South Korea’s Industrial Output Declines as Europe’s Crisis Saps Demand (Source: Bloomberg)
South Korea’s industrial production fell for a third month in December as Europe’s sovereign-debt crisis hurt exports and business confidence. Output (KOIPIMOM) declined 0.9 percent from November, when it dropped a revised 0.3 percent, Statistics Korea said today, missing all 11 economist forecasts in a Bloomberg News survey. The median estimate was a 1.1 percent gain. Production rose 2.8 percent from a year ago after gaining a revised 5.8 percent in November, compared with a 4.1 percent rise estimated by economists. South Korea, which grew the least in two years in the fourth quarter, is facing increased uncertainty from Europe’s debt crisis, Finance Minister Bahk Jae Wan said yesterday. The Bank of Korea refrained from raising interest rates for a seventh month on Jan. 13 to support growth amid faltering global expansion and signs of easing inflation.

Japan Jobless Rate Rises on Strong Yen (Source: Bloomberg)
Japan’s unemployment rate unexpectedly rose last month as the strong yen continues to squeeze manufacturers. The jobless rate was 4.6 percent in December, the statistics bureau said in Tokyo today. The median forecast of 30 economists surveyed by Bloomberg News was for the rate to remain at 4.5 percent. The government has approved four supplementary budgets worth about 20 trillion yen ($262 billion) to stoke demand and rebuild after the March 11 earthquake and tsunami. Those funds are helping support the labor market, offsetting planned job reductions at manufacturers including NEC Corp. (6701)
“Labor offers in the devastated areas have been quite strong, and this will continue to support the labor market.” Kiichi Murashima, chief economist at Citigroup Global Markets Japan Inc. in Tokyo, said before the report. “Manufacturers have become cautious about hiring people in the context of global growth, the yen’s appreciation and uncertainty surrounding electricity supply” stemming from the shutdown of nuclear reactors since the disaster, he said.

Japan Industrial Output Increases Most in 7 Months (Source: Bloomberg)
Japan’s industrial output increased the most in seven months in December as manufacturers made up for disruptions caused by Thailand’s worst floods in 70 years. Factory production rose 4 percent from November, when production slid because of supply disruptions, the trade ministry said in Tokyo today. The median estimate of 30 economists surveyed by Bloomberg News was for a 3 percent gain. Manufacturers from Honda Motor Co. to Toyota Motor Corp. are optimistic about demand as they recover from a year of natural disasters at home and in Thailand. A stronger currency and a slowing global economy weighed down by Europe’s fiscal woes are risks for growth in Japan.

Confidence in Euro Area Increases at Slower Pace Than Estimated: Economy (Source: Bloomberg)
Euro-area confidence in the economic outlook improved less than forecast in January as the region’s leaders struggled to stamp out a two-year-old financial crisis and revive growth. An index of executive and consumer sentiment in the 17- nation euro area rose to 93.4 from a revised 92.8 in December, the European Commission in Brussels said today. That’s the first increase since February 2011, though it’s less than the median prediction of 93.8 in a Bloomberg survey of 30 economists. European Union leaders convene for their first summit of 2012 in Brussels today as a deteriorating economy and the struggle to complete a Greek debt swap risk undermining their crisis-fighting efforts. European Central Bank (EURR002W) President Mario Draghi said on Jan. 19 that 2012 will be a “much better” year for the single-currency area, though the International Monetary Fund forecast a recession.

Sarkozy Transaction Tax May Drive Investors Away From French Stock Market (Source: Bloomberg)
The French stock market, Europe’s second-biggest by value, may fall out of favor with investors after President Nicolas Sarkozy unveiled plans to unilaterally impose a 0.1 percent tax on financial transactions. “Even if the tax isn’t high, market participants who have a choice of stocks trading in Paris or elsewhere will go elsewhere,” said Yves Maillot, the Paris-based head of investments at Robeco Gestions SA, which oversees $6.8 billion. “That’s what we can fear.” Sarkozy, 57, who faces elections in a two-round vote in April and May, wants to make good on a pledge he made to impose such a tax when France last year held the presidency of both the G-8 and G-20 group of countries. He said Jan. 29 that France will impose the levy starting in August in spite of opposition from banks. The tax will apply to share purchases, including high frequency trading, and credit default swap transactions.

Euro-Area Debt Sales Top $43 Billion in Week as Fitch Threatens Sentiment (Source: Bloomberg)
European nations including Italy, Belgium and Spain may sell more than 33 billion euros ($43.3 billion) of securities this week as credit-rating cuts risk upending optimism the region’s debt crisis is being contained. Italy sold 5.574 billion euros out of a target of 6 billion euros of five- and 10-year debt today, and issued 1.9 billion euros out of a maximum goal of 2 billion euros of securities due in April 2016 and March 2021. Belgium sells as much as 3 billion euros of bills tomorrow, with Spain, Portugal, Germany and France issuing 13 different maturities in the five days.
While Italian and Spanish 10-year yields have fallen more than 1 percentage point from November highs as the European Central Bank offered banks unlimited three-year loans and Greek debt-swap talks pressed on, Fitch Ratings joined Standard & Poor’s this month in downgrading the nations’ credit. European Union leaders are meeting today in Brussels in a bid to wrap up a deficit-control treaty aimed at stemming the crisis, now in its third year.

Merkel Signals Greece Debt Deal Delay (Source: Bloomberg)
European leaders sparred with Greece over a second rescue program, clouding progress toward a permanent aid fund and tougher budget rules designed to stabilize the euro. Greece faced criticism that its economic makeover is faltering, and it fended off German-led calls for a European overseer to take command of its budget after its deficits surpassed targets for two years. “What the Greeks have to do is show they are ready to implement the package,” Dutch Prime Minister Mark Rutte told reporters as he arrived for a European Union summit in Brussels today. “We can help Greece through this difficult phase, but then Greece has to execute all agreements they made with us.”

EU Nears Confrontation Over Greek Rescue (Source: Bloomberg)
European governments moved toward a confrontation over a second rescue package for Greece, just as a dimming fiscal outlook in Portugal opened a new front in the debt crisis. Euro leaders left a Brussels summit late yesterday with no accord over how to plug Greece’s widening budget hole and German Chancellor Angela Merkel voicing frustration with the Athens government’s failure to carry out an economic makeover. “Greece’s debt sustainability is especially bad,” Merkel told reporters. “You have to find a way through more action by the Greek government, more contributions by private creditors, for example, in order to close this gap.”

20120131 1001 Global Commodities Related News.

2012-01-31T10:01:00.000+08:00

Australia Selling the Farm as Prices Lure Global Funds (Source: Bloomberg)
Winston Heywood ended a 200-year family history when he sold his parched wheat fields to a fund managed by U.S. investor Westchester Group Investment Management Inc. for more than A$6 million ($6.4 million). “They offered me the money I could live off for the rest of my life,” said the 62-year-old, who in August left for the New South Wales coastal town of Coffs Harbour after enduring his driest season since 2000. “My kids didn’t want to go through the ups and downs I went through.” At least four other funds are seeking A$1.6 billion to buy similar assets in Australia, lured by fresh rain, the prospect of bumper crops, and land prices that have dropped 20 percent nationwide, and in some areas have fallen by half, since the end of 2007. Now, three years after billionaire James Packer sold off cattle ranches larger than the Netherlands, rural land prices may have bottomed, according to Colliers International.

Corn (Source: CME)
US corn futures retreat, ending lower on profit-taking and outside macro pressures. The market was primed for a pullback after sharp gains last week, traders say, and a stronger dollar--along with weaker equities thanks to Europe's debt crisis--sent buyers to the sidelines Monday. Analysts add that cash-market prices, which propelled futures last week, have since weakened, with Gulf basis sliding sharply. Traders also note there were beneficial South America rains over the weekend, though that is more of help for soy than corn at this stage of the growing season. CBOT March corn ends down 10c at $6.31 3/4 per bushel.

Wheat (Source: CME)
US wheat futures decline on pressure from corn and macroeconomic markets. Wheat was the strongest market in the grains complex but succumbed to outside pressure as corn sank and commodities generally fell amid a stronger dollar and European worries. Still, traders are nervous about a cold snap in Europe that could threaten wheat crops there, although it will be weeks before any damage is confirmed. Analysts add that speculative funds' large net-short position in wheat leaves it open to short-covering rallies. CBOT March wheat ends down 2 1/2c at $6.44 3/4 a bushel, KCBT March fell 2 1/2c to $6.97 and MGEX March declined 7 1/4c to $8.19.

Rice (Source: CME)
U.S. rice futures end lower on outside market pressure and weak demand. Worries about Europe's debt crisis drove the dollar higher and equities lower, weighing on commodities generally. Rice is suffering from weak demand, both domestically and internationally, but remains in a range established Jan. 12. CBOT March rice ends down 18c to $14.45 1/2 per hundredweight.

U.S. wheat firm on output concerns; corn, soy dip
NEW DELHI, Jan 30 (Reuters) - Chicago wheat futures were a touch higher, driven by concerns over output in the Black Sea region and talk that Russia, which has emerged as a major global supplier of the grain, may curb exports to bolster domestic supplies.
"Yes, there has been some speculation about Russia applying brakes on wheat exports, but the market will have to wait for some clear signal," said Lynette Tan, analyst with Phillip Futures in Singapore.

Vietnam Q1 rice exports seen down 39 pct y/y -newspaper
HANOI, Jan 30 (Reuters) - Vietnam's rice exports in the first quarter of 2012 are expected to fall 39 percent from a year ago to around 1.1 million tonnes due to fierce competition from Indian and other Asian grains in its major markets, a state-run newspaper said on Monday.
Exporters of 25 percent broken grain have been losing market share in Africa to India, Myanmar and Pakistan, the Vietnam Economic Times quoted Truong Thanh Phong, chairman of the Vietnam Food Association (VFA), as saying.

Extreme heat hurts wheat yields as world warms-study
SINGAPORE, Jan 30 (Reuters) - Extreme heat can cause wheat crops to age faster and reduce yields, a U.S.-led study shows, underscoring the challenge of feeding a rapidly growing population as the world warms.
Scientists and farmers have long known that high heat can hurt some crops and the Stanford University-led study, released on Monday, revealed how the damage is done by tracking rates of wheat ageing, or senescence.

Myanmar to sell Indonesia 200,000 tonnes rice a year
YANGON, Jan 28 (Reuters) - Myanmar will sell Indonesia about 200,000 tonnes of rice a year under an agreement signed on Saturday with Indonesia's state procurement agency, Bulog, Myanmar industry officials said.
Bulog imported 1.9 million tonnes of rice last year from Thailand, Vietnam and India but said on Jan. 5 it wanted to avoid imports this year. Indonesia aims to be self-sufficient, as it was in the early 1980s.

Argentina says rain came too late for some corn
BUENOS AIRES, Jan 27 (Reuters) - The dryness that blighted Argentine farm areas in December and early January will cut yields of early-planted corn while later-seeded fields have been revived by recent rains, the government said on Friday.
A scorching Southern Hemisphere summer sun has dried up hope that Argentina might replenish global corn supplies after a lacklustre U.S. harvest. The South American country is the No. 2 exporter of corn and the No. 3 supplier of soybeans, which serve as a major source of protein for the world.

Ohio ethanol makers reject vomitoxin corn
CHICAGO, Jan 27 (Reuters) - Ohio ethanol makers have rejected corn from that state containing vomitoxin, the byproduct of a fungal disease usually found in wheat, and corn prices rose further on the hot U.S. cash market, merchants and farmers said.
Vomitoxin, which sickens livestock if consumed in large amounts, thrived under cool, wet weather this past autumn in Ohio.

EU wheat now competitive for export -Toepfer
HAMBURG, Jan 27 (Reuters) - European Union milling wheat is now competitively priced in global export markets and is likely to gain sales as rival Black Sea supplies become tighter, Germany's largest grain trading house Toepfer International said on Friday.
"(EU) milling wheat has become competitive internationally and in January export sales were made to Algeria, Tunisia and Egypt," Toepfer said in a market report.

Rains lift Brazil's cane crop, sunny days ahead
SAO PAULO, Jan 27 (Reuters) - Rains in Brazil's main center-south cane region are helping the development of plants; sunny and dry weather was forecast for the next 10 days, meteorologists Somar said Friday.
Brazil is the world's largest sugar exporter, and the center-south accounts for around 90 percent of the national cane crop.

Rain Boosts Argentina's Parched Fields, But Much More Needed (Source: CME)
Argentina's parched fields got a moderate soaking from showers across much of the farm belt over the weekend, but much more is needed to replenish depleted soil moisture levels and fuel a recovery of the developing soy crop. "It helped, but didn't reverse the dryness," said agricultural weather specialist Tomas Parenti of the Rosario Grain Exchange. More showers are hoped for Monday night and Tuesday, and farmers will be watching closely for sufficient rain to boost water reserves enough to get the crops through the summer season, Parenti said. As of midday Monday, up to 25 millimeters of rain had fallen across the southern areas of the central farm belt, according to the exchange's climate report, known as the GEA. Argentina is the world's second-largest corn exporter, leads soyoil and soymeal exports and ranks third in global soybean exports. Global grain traders have been watching weather conditions in both Argentina and Brazil closely for signs of a break in the drought, which would stem crop losses.
However, the corn crop has already suffered major losses with potential production down by over a quarter. Early in the season, many had expected production to top 30 million tons. Now, the Rosario exchange is predicting corn output of just 21.4 metric tons. "This is going to be an average-to-bad season for corn," Parenti said. While there is still time for the soybean crop to rebound, some yield losses are irreversible and many fields have low soybean pod counts, he added. Analysts are predicting 2011-12 soybean production of between 45 million and 49.5 million tons--well short of the record 54.5 million tons harvested in the 2009-10 season. While recent showers are a boon, below-average rainfall is expected to continue in the coming months due to the La Nina weather phenomenon. La Nina involves the periodic cooling of the equatorial Pacific Ocean that usually brings dry weather to the farm belts of Argentina, Uruguay, Paraguay and the south of Brazil.
La Nina is expected to fade in March or April, but its effects will linger through the southern hemisphere winter with dryness continuing until October or November, according to Eduardo Sierra, chief climatologist for the Buenos Aires Cereals Exchange.

Thailand May Lose World's Top Rice Exporter Title; Over 40% Fall Likely In 2012 (Source: CME)
Thai rice exports could fall by more than 40% to multiyear lows, on the back of uncompetitive prices and government buying above market rates, a top industry official said Monday, potentially putting Thailand below Vietnam and India as the world's top exporter of rice. Thai rice exports reached a record 10.6 million metric tons in 2011, but are likely to fall to 6 million tons this year, Korbsook Iamsuri, president of the Thai Rice Exporters' Association told Dow Jones Newswires in an interview. Korbsook said that in recent months, Thailand has lost most of its share in global trade of parboiled grades to India, whose offers are cheaper by up to $100/ton. India resumed exporting non-Basmati rice in September after a gap of more than three years when they were banned to curb domestic inflation. Before India lifted its ban on exports, Thailand was exporting up to 400,000 tons of parboiled rice each month but shipments are now less than 100,000 tons, Korbsook said.
She said Thailand's exports of white raw rice, too, have slowed because of a lack of supply. Thailand lost close to 20% of the main rice crop that was harvested between October and December due to last year's floods while another 25% of its harvest last year was procured by the government to boost growers' earnings. The next harvest will only begin at the end of March, Korbsook said, and government procurement may be even higher because of rise in output and localized surpluses. The fall in exports is likely even as Thailand is set to reap a bumper crop of almost 8 million tons of unmilled rice in the secondary harvest, up from the usual 5 million-6 million tons. Close to 5 million tons may be procured by the government this year, she said. The bulk of the secondary harvest is in central Thailand, where farmers produce large surpluses, whereas production in northeast is dominated by small growers who cultivate mostly for self consumption, Korbsook said.
One consequence of government procurement is that the stockpile of rice will rise sharply at the expense of exports to more than 8.5 million tons. This is equivalent to exports of over eight months. She said the government already has 1.5 million tons rice in milled terms from previous years, has procured 3.5 million tons from the latest harvest and likely to buy a similar volume from the next harvest. The Thai government's policy of disposing of its stockpile isn't clear but exports may be higher than expected if the government sells to other governments overseas, Korbsook said.

Croatia Wheat 12-13 Production Forecast At 832,000 Tons - USDA (Source: CME)
Croatia's wheat production during the 2012-13 crop year will likely hit 832,000 metric tons, leaving the country with around 280,000 tons of grain for export, according to the U..S Department of Agriculture's Zagreb attache. Croatia's 2012-13 corn production is forecast to hit 2 million metric tons, creating a surplus of around 300,000 tons for potential exports, the attache said. Croatian barley production in 2012-13 is forecast at 190,000 metric tons, which won't meet domestic demand needs, so imports of around 30,000 metric tons are expected, the USDA said.

Sucden sees Brazil cane output modest recovery in 2012/13
LONDON, Jan 30 (Reuters) - Trade house Sucden Brazil anticipates a modest recovery in sugarcane production in centre-south Brazil to around 520 million tonnes in 2012/13.
Jeremy Austin, director of Sucden Brazil, said aging cane plants would make it hard for farmers to boost production, and that it could take some three years to bring down the average age of the cane to more reasonable levels.

ICE extends raw sugar trading hours, eyes Asia
SINGAPORE/NEW YORK, Jan 26 (Reuters) - Extended trading hours for New York sugar futures will offer Asian consumers a chance to hedge on the exchange which sets the tone for global prices, but liquidity may take some time to pick up.
China's interest also remains to be seen, with the expansion of the trading hours at the ICE FUTURES U.S. from next week designed to overlap with the end of trading in the Zhengzhou Commodity Exchange by 30 minutes.

BASF sees crop science expansion in move to U.S.
Jan 27 (Reuters) - German chemical company BASF is honing in on the Americas in the profitable biotech crop arena and giving up on the European market, where it has been frustrated by opposition to crops with genetically modified organisms, a top executive said on Friday.
BASF, one of the world's largest chemical companies, said last week it was transferring the headquarters of BASF Plant Science from Limburgerhof in Germany, to Raleigh, North Carolina. Development and commercialization of all products targeted solely at cultivation in the European market will be halted, the company said.

Brazil to sell 2009 arabica coffee stocks
BRASILIA, Jan 27 (Reuters) - Brazil will start selling arabica coffee stocks it bought to bolster prices in 2009, the agriculture ministry's coffee director told Reuters on Friday, with coffee prices now roughly $1 higher than when the stocks were first acquired.
The 1.4 million 60-kg bags of arabica (84,000 tonnes) should begin to be sold from February now that almost all the older public coffee stocks, some more than 30 years old, have been almost completely sold off, Edilson Alcantara said.

Coal-Carrier Rates Seen Dropping to Decade-Low on Capacity Glut: Freight (Source: Bloomberg)
The greatest number of coal cargoes in history still won’t be enough to eliminate a glut of Panamax vessels, driving charter rates to the lowest in a decade. Shipments will rise 3.6 percent to 956 million metric tons this year, according to London-based Clarkson Plc, the world’s biggest shipbroker. Rates for Panamaxes, each about 750-feet long, will average $12,744 a day in 2012, the lowest since 2002, the median of 10 analyst estimates compiled by Bloomberg shows. While that implies losses for ship owners, investors may profit by buying forward freight agreements, traded by brokers and used to bet on future costs, which anticipate $10,107.
Panamax charter costs already tumbled 53 percent since Jan. 1, the worst start to a year since at least 1999, as the fleet expanded for a 35th consecutive month. The slump is masking growth in economic activity, with Clarkson predicting record cargoes of everything from iron ore to oil to manufactured goods. The International Monetary Fund expects a third consecutive annual gain in world trade as economies recover from the worst global recession since World War II.

Euro Coal-Prices tick higher with oil, power
LONDON, Jan 27 (Reuters) - A rise in oil, European power values and tight prompt supply of South African coal pushed coal swaps and physical prices higher by around 50 cents to $1.00 U.S. a tonne on Friday.
But prices could start to sag again and dip towards $100 if China stays out of the spot market for another few weeks after the end of the Lunar New Year holidays, traders and utilities said.

Oil Increases as Much as 0.5% in New York to $99.28 on Economic Reports (Source: Bloomberg)
Oil rose in New York, gaining as much as 0.5 percent, on signs of better-than-expected increases in Japanese industrial production during December. Crude for March delivery climbed 50 cents to $99.28 a barrel in electronic trading on the New York Mercantile Exchange. It was at $99.26 at 8:48 a.m. Singapore time.

Oil dips below $111, EU and Iran eyed
LONDON, Jan 30 (Reuters) - Oil prices retreated, dipping below $111 a barrel after an expected Iranian vote to suspend crude exports to Europe was postponed and markets continued to wait for a deal on Greek debt.
"The newsflow regarding Iran will continue to drive prices. If there are further comments about stopping oil exports to Europe, prices will rise, but I rather doubt this will happen. It is just jawboning," said Carsten Fritsch, an energy analyst at Commerzbank in Frankfurt.

Russia oil export to rise 100kbpd in '12-dep oilmin
MOSCOW, Jan 30 (Reuters) - Russia, which lacks spare capacity to step in with extra oil if Iranian crude supplies are cut, can increase exports by about 100,000 barrels per day this year, its deputy energy minister said, roughly in line with expected output growth.
"This year we are planning (export) growth of 5 million tonnes (100,000 barrels per day) due to increased output," Deputy Energy Minister Sergei Kudryashov said on Monday after a meeting with oil companies on production sharing agreements.

S.Korea's Lee to visit Middle East to secure crude
SEOUL, Jan 30 (Reuters) - South Korean President Lee Myung-bak will visit major oil producing countries in the Middle East next month amid growing pressure from key ally the United States to join sanctions against Tehran by cutting crude oil imports from Iran.
Lee will visit Saudi Arabia, Qatar and the United Arab Emirates over four days starting Feb. 7 to secure "stable sources of energy," his office said in a statement.

Myanmar has no plans to export new gas finds
NAYPYITAW, Myanmar, Jan 27 (Reuters) - Myanmar will keep natural gas from new projects beyond 2013 for domestic consumption, a shift of policy aimed at powering its development, the country's energy minister said on Friday.
Myanmar has opened up to the outside world with astonishing speed since a civilian government took office last March after five decades of army rule. The prospect of the end of Western sanctions has prompted a surge of interest from investors.

Silver Powering 20 Million Homes as Supply Surplus Subsides: Commodities (Source: Bloomberg)
Record industrial demand for silver and resurging investor interest is diminishing a supply surplus, driving the metal used in everything from solar panels to batteries into its best start to a year in almost three decades. Manufacturers will use 15,415 metric tons, 2.5 percent more than in 2011 and reducing the glut by 41 percent to 3,297 tons, Barclays Capital estimates. Investors may buy 2,000 tons through exchange-traded products, after selling 1,300 tons last year, Morgan Stanley predicts. Prices will average $37.50 an ounce in the fourth quarter, 12 percent more than now, the median estimate in a Bloomberg survey of 13 analysts shows. The metal rallied 23 percent since closing at an 11-month low in December, entering a bull market on mounting confidence that another global recession will be avoided even as the World Bank and International Monetary Fund cut their growth forecasts.
Prices had plunged 44 percent in eight months, making it the most volatile of any metal tracked by Bloomberg, as expansion slowed from Europe to China, crimping demand for commodities.

Iron Ore-Shanghai rebar hits 3-1/2-month top as China returns
SINGAPORE, Jan 30 (Reuters) - Shanghai steel futures rose to their highest level in 3-1/2 months on Monday as the Chinese returned from a week-long Lunar New Year break, boosting expectations steel producers may replenish iron ore stockpiles.
But the modest gain in steel futures, sizeable imported iron ore stocks at Chinese ports and the likelihood that most buyers may only return to the market later this month, suggest iron ore may be in for a limited price rise.

China's steel output up 3.9 pct in early Jan-CISA
BEIJING, Jan 29 (Reuters) - China's daily crude steel output rose 3.94 percent in the first 10 days of January to 1.691 million tonnes, according to data issued by the China Iron and Steel Association (CISA) on Sunday.
Daily runs over the period were at their highest level since late October, with mills boosting production ahead of the week-long Chinese new year holiday beginning on Jan. 22.

Asia Dry Bulk-Rates to rise from 3-yr low after China break
SINGAPORE, Jan 26 (Reuters) - Rates for panamax carriers on key Asian routes could recover slightly from three-year lows over the next week as Chinese traders return from holiday, ship brokers said on Thursday.
PANAMAX/SUPRAMAX
The rate for panamax vessels travelling via the transpacific route tumbled to a three-year low of $5,915 a day on Wednesday from $6,717 last week as a flood of new vessels continued to weigh on an already oversupplied market.

20120131 0959 Soy Oil & Palm Oil Related News.

2012-01-31T09:59:00.003+08:00

ITS CPO export down 11.9% to 1,315,323 tonnes for the period of 1~31 Jan 2012.
SGS CPO export down 13% to 1,293,078 tonnes for the period of 1~31 Jan 2012.

Soybeans (Source: CME)
US soybean futures tumbled, driven lower by traders reducing weather premium from prices and broad-based selling across asset classes. Rains forecast to move through Argentina for the next week raise hope of improved crop yields, particularly with rains coming as crops move into their critical reproductive stage, analysts say. Strength in the US dollar amid renewed worries about EU debt produced general weakness in commodities, aiding the defensive theme as well. CBOT March soybeans ended down 33 3/4c or 2.8% to $11.85 1/4.

Soybean Meal/Oil (Source: CME)
Soy product futures end lower, plunging in unison with sharp declines in soybeans. Improved crop outlooks for South American soybeans and broader based selling across commodity markets combined to pin both soymeal and soyoil in negative territory, analysts say. CBOT March soymeal ended down $9.50 at $312.70/short ton, March soyoil dropped 1.34c to 50.25 cents/pound.

China ban on Indian meal to benefit Canadian canola
BEIJING, Jan 30 (Reuters) - China will boost imports of rapeseed and rapeseed meal from Canada to maintain supplies of the feed ingredient, traders said on Monday, after Beijing imposed a ban on Indian meal found to have been tainted with a toxic chemical.
Traders said cargoes of Indian rapeseed meal loaded after Jan 1 would be denied entry while both countries work to resolve the quality issue.

'Tax free CPO export quotas delayed'
KUALA LUMPUR (Jan 31, 2012): Malaysia has delayed issuing tax free crude palm oil (CPO) export quotas for 2012 as it drafts a policy response to top supplier Indonesia's move to change its tariffs and revive its own refineries, industry and government sources told Reuters. The delay by Malaysia, the world's No 2 producer, leaves more supply for local processors but comes at a time when some refined edible oil demand has already shifted to Indonesia which last year slashed export taxes for processed oils. For plantation firms holding export quota licences, the delay has hampered their ability to supply their overseas refiners with cheap feedstock and meet existing export contracts for CPO. "The Malaysian government usually issues the quotas in the last week of December but until now, nothing has been given out," one of the sources with a local plantation firm with a licence for the quotas said yesterday.
"We had been asking since December and the lack of action is affecting our business. This is why Malaysia's exports are falling this month," added the source who could not be identified as he is not authorised to speak to the media. Cargo surveyor Societe Generale de Surveillance reported close to a 20% decline in Jan 1-25 Malaysia palm oil export from the same period a month ago. Crude shipments alone slumped 75% to 74,640 tonnes. — Reuters (The Sun Daily)

20120130 1815 FCPO EOD Daily Chart Study.

2012-01-30T18:15:00.000+08:00

FCPO closed : 3082, changed : -53 points, volume : higher.
Bollinger band reading : little downside biased with possible pullback correction.
MACD Histrogram : falling, seller taking exposure.
Support : 3070, 3050, 3020, 2970 level.
Resistance : 3100, 3150, 3200, 3250 level.
Comment :
FCPO closed recorded substantial loss with increasing volume transacted. Soy oil price currently trading weaker after last Friday closed recorded loss while crude oil price also registering loss.
Price traded lower ahead on tomorrow export data as market anticipate a weaker demand with the previous export figure by cargo surveyors (25th Jan) still showing decline by nearly 20% after demand season peaked while soy oil price trade lower result of over speculation on lower crop in South America due to dry weather.
Chart study suggesting a little downside biased market development with possible pullback correction.
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.

20120130 1745 FKLI EOD Daily Chart Study.

2012-01-30T17:45:00.000+08:00

FKLI closed : 1502, changed : -21 points, volume : lower.
Bollinger band reading : side way range bound with possible pullback correction.
MACD Histrogram : falling lower, seller taking exposure.
Support : 1500, 1494, 1485, 1470 level.
Resistance : 1505, 1515, 1530, 1540 level.
Comment :
FKLI closed recorded huge loss with lower volume changed hand doing 11.5 points discount compare to cash market that closed lower. Last Friday U.S. market closed recorded loss and today Asia markets also ended in negative zone while European markets registering loss.
Concern on European summit meeting will fail to reach agreement on sovereign debt issue, Phllips Electronics 4th quarter larger than estimates loss and slower than forecast U.S. economy growth send global markets to trade lower.
Daily chart technical reading suggesting a side way range bound market development with possible pullback correction.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

20120130 1719 Regional Markets EOD Daily Chart Study.

2012-01-30T17:19:00.000+08:00

DJIA chart reading : pullback correction upside biased.

Hang Seng chart reading : pullback correction upside biased.

KLCI chart reading : side way range bound little downside biased.

20120130 1552 Global Market & Commodities Related News.

2012-01-30T15:52:00.001+08:00

Shares, euro guarded over likely Greek debt deal
TOKYO, Jan 30 (Reuters) - Asian shares inched down and the euro fell from its highest in more than six weeks, as markets cautiously tuned in to a likely debt swap deal for Greece that is crucial to avoiding a messy default and eyed yet another European summit meeting.
"As focus shifts to the second Greek bailout fund from the debt swap deal, it's likely that sentiment will revert to risk aversion, given that talks are expected to face hurdles before reaching an agreement," said Masafumi Yamamoto, chief currency strategist at Barclays Bank in Tokyo.

FOREX-Euro off recent peaks on profit-taking; Greece talks eyed
TOKYO, Jan 30 (Reuters) - The euro came off six-week highs against the dollar on Monday, as investors took profits made on its strongest weekly rally in more than a quarter and awaited a debt deal between Greece and its private creditors.
Further tension concerning Greece after suggestions that the country should give up control of its budget policy to European institutions sparked an angry reaction from Greece's Finance Minister Evangelos Venizelos, also weighed on the sentiment, traders said.

U.S. wheat firm on output concerns; corn, soy dip
NEW DELHI, Jan 30 (Reuters) - Chicago wheat futures were a touch higher, driven by concerns over output in the Black Sea region and talk that Russia, which has emerged as a major global supplier of the grain, may curb exports to bolster domestic supplies.
"Yes, there has been some speculation about Russia applying brakes on wheat exports, but the market will have to wait for some clear signal," said Lynette Tan, analyst with Phillip Futures in Singapore.

Vietnam Q1 rice exports seen down 39 pct y/y -newspaper
HANOI, Jan 30 (Reuters) - Vietnam's rice exports in the first quarter of 2012 are expected to fall 39 percent from a year ago to around 1.1 million tonnes due to fierce competition from Indian and other Asian grains in its major markets, a state-run newspaper said on Monday.
Exporters of 25 percent broken grain have been losing market share in Africa to India, Myanmar and Pakistan, the Vietnam Economic Times quoted Truong Thanh Phong, chairman of the Vietnam Food Association (VFA), as saying.

Extreme heat hurts wheat yields as world warms-study
SINGAPORE, Jan 30 (Reuters) - Extreme heat can cause wheat crops to age faster and reduce yields, a U.S.-led study shows, underscoring the challenge of feeding a rapidly growing population as the world warms.
Scientists and farmers have long known that high heat can hurt some crops and the Stanford University-led study, released on Monday, revealed how the damage is done by tracking rates of wheat ageing, or senescence.

Argentina says rain came too late for some corn
BUENOS AIRES, Jan 27 (Reuters) - The dryness that blighted Argentine farm areas in December and early January will cut yields of early-planted corn while later-seeded fields have been revived by recent rains, the government said on Friday.
A scorching Southern Hemisphere summer sun has dried up hope that Argentina might replenish global corn supplies after a lacklustre U.S. harvest. The South American country is the No. 2 exporter of corn and the No. 3 supplier of soybeans, which serve as a major source of protein for the world.

Rains lift Brazil's cane crop, sunny days ahead
SAO PAULO, Jan 27 (Reuters) - Rains in Brazil's main center-south cane region are helping the development of plants; sunny and dry weather was forecast for the next 10 days, meteorologists Somar said Friday.
Brazil is the world's largest sugar exporter, and the center-south accounts for around 90 percent of the national cane crop.

ICE extends raw sugar trading hours, eyes Asia
SINGAPORE/NEW YORK, Jan 26 (Reuters) - Extended trading hours for New York sugar futures will offer Asian consumers a chance to hedge on the exchange which sets the tone for global prices, but liquidity may take some time to pick up.
China's interest also remains to be seen, with the expansion of the trading hours at the ICE FUTURES U.S. from next week designed to overlap with the end of trading in the Zhengzhou Commodity Exchange by 30 minutes.

Brazil to sell 2009 arabica coffee stocks
BRASILIA, Jan 27 (Reuters) - Brazil will start selling arabica coffee stocks it bought to bolster prices in 2009, the agriculture ministry's coffee director told Reuters on Friday, with coffee prices now roughly $1 higher than when the stocks were first acquired.
The 1.4 million 60-kg bags of arabica (84,000 tonnes) should begin to be sold from February now that almost all the older public coffee stocks, some more than 30 years old, have been almost completely sold off, Edilson Alcantara said.

Bad weather shuts one oil port in Mexico's Gulf
MEXICO CITY, Jan 29 (Reuters) - Cayo Arcas, one of Mexico's three biggest oil exporting ports in the Gulf, was closed on Sunday due to bad weather, the transport ministry said.
Almost all of Mexico's crude oil exports are shipped to refineries on the Gulf Coast of the United States from the Cayo Arcas, Dos Bocas and Coatzacoalcos facilities.

India won't cut Iranian oil imports-finance minister
CHICAGO, Jan 29 (Reuters) - India, the world's fourth-largest oil consumer, will not take steps to cut petroleum imports from Iran despite U.S. and European sanctions against Tehran, its finance minister said on Sunday during a visit to Chicago.
The United States wants buyers in Asia, Iran's biggest oil market, to cut imports to put further pressure on Tehran to rein in its nuclear ambitions. Washington suspects Iran of trying to make nuclear weapons, but Tehran says its nuclear program is for peaceful means.

China's steel output up 3.9 pct in early Jan-CISA
BEIJING, Jan 29 (Reuters) - China's daily crude steel output rose 3.94 percent in the first 10 days of January to 1.691 million tonnes, according to data issued by the China Iron and Steel Association (CISA) on Sunday.
Daily runs over the period were at their highest level since late October, with mills boosting production ahead of the week-long Chinese new year holiday beginning on Jan. 22.

Swedish iron ore can give Europe's importers choice
LONDON, Jan 27 (Reuters) - Additional Swedish iron ore supply may replace a small part of Europe's imports from Brazil and Canada, as steelmakers try to diversify their supply base and rely more on local material, executives at Swedish mine developer Nordic Iron Ore said.
Nordic Iron Ore, a junior iron ore miner developing projects in Sweden, will not necessarily compete with other Swedish miners such as Northland, Christer Lindqvist, the company CEO, and Paul Marsden, the technical sales and marketing director, told Reuters in an interview.

Copper edges down ahead of expected Greek debt agreement
KUALA LUMPUR, Jan 30 (Reuters) - Copper recoiled
from a four-month high on investor caution ahead of expected details on a debt swap agreement for Greece that's seen as key to avoiding a disorderly default. Three-month copper on the London Metal Exchange inched down to $8,508.50 a tonne by 0112 GMT, after reaching $8,679.50 on Friday, the highest since Sept. 16. Prices are headed for the biggest monthly gain since October, with an increase of 12 percent.

Wet weather hampers Indonesia tin output
PANGKAL PINANG, Indonesia, Jan 27 (Reuters) - Wet weather is seriously hampering tin output in top refined exporter Indonesia, a smelter official based in the main producing region of Bangka Belitung said on Friday.
The rainy season in Southeast Asia's largest economy began around November last year and is expected to peak in January or February.

Gold off 7-week high; Greek debt talks eyed
SINGAPORE, Jan 30 (Reuters) - Gold ticked lower after earlier rising to its highest in more than seven weeks as investors awaited the outcome of Greece's debt deal talks, but a slower-than-expected growth in the United States underpinned sentiment.
"If the retreat-rally pattern seen in the past two quarters continues, gold could well rise to $1,780 an ounce by early March," said Nick Trevethan, a senior commodity strategist at ANZ in Singapore.

METALS-Copper falls ahead of EU summit, Greek debt agreement
KUALA LUMPUR, Jan 30 (Reuters) - Copper pulled back on Monday from a four-month high on investor caution ahead of expected details on a debt swap agreement for Greece that's seen as key to avoiding a disorderly default.
Three-month copper on the London Metal Exchange fell 0.9 percent to $8,455 a tonne by 0436 GMT, after reaching $8,679.50 on Friday, the highest since Sept. 16.

RECIOUS-Gold off 7-week high; Greek debt talks eyed
SINGAPORE, Jan 30 (Reuters) - Gold ticked lower on Monday after earlier rising to its highest in more than seven weeks as investors awaited the outcome of Greece's debt deal talks, but a slower-than-expected growth in the United States underpinned sentiment.
EU leaders, which will sign off on a permanent rescue fund for the euro zone on Monday, are expected to agree on a balanced budget rule in national legislation, but unresolved problems in Greece cast a shadow on the discussions.

20120130 1129 Global Market & Commodities Related News.

2012-01-30T11:29:00.000+08:00

Shares, euro guarded over likely Greek debt deal
TOKYO, Jan 30 (Reuters) - Asian shares inched lower and the euro eased from its highest in more than six weeks on Monday, as markets cautiously tuned in to a likely debt swap deal for Greece that is crucial to avoiding a messy default and eyed another a European summit meeting.
"As focus shifts to the second Greek bailout fund from the debt swap deal, it's likely that sentiment will revert to risk aversion given that talks are expected to face hurdles before reaching an agreement," said Masafumi Yamamoto, chief currency strategist at Barclays Bank in Tokyo.

Brent up on Iran; refinery work lifts U.S. gasoline
NEW YORK, Jan 27 (Reuters) - Brent crude prices rose a second straight day on Friday as Iran's upcoming parliamentary vote on halting exports to the European Union kept supply uncertainty in focus and another U.S. refinery problem helped send gasoline futures surging.
"(U.S.) crude oil prices are under pressure due to the disappointing Q4 GDP reading, and would likely be much lower except for the support given to the complex by gasoline from the Bayway outage," John Kilduff, partner at Again Capital LLC in New York, said.

Japan's 2011 crude imports from Iran fall 13 pct -MOF
TOKYO, Jan 30 (Reuters) - Japan's customs-cleared crude imports from Iran in 2011 fell to 18.23 million kiloliters (314,000 barrels per day), down 13.2 percent from the previous year, Ministry of Finance data showed on Monday.
In December, imports from Iran fell 14.7 percent from a year earlier to 1.56 million kl (317,000 bpd), the data showed.

Bad weather shuts one oil port in Mexico's Gulf
MEXICO CITY, Jan 29 (Reuters) - Cayo Arcas, one of Mexico's three biggest oil exporting ports in the Gulf, was closed on Sunday due to bad weather, the transport ministry said.
Almost all of Mexico's crude oil exports are shipped to refineries on the Gulf Coast of the United States from the Cayo Arcas, Dos Bocas and Coatzacoalcos facilities.

India won't cut Iranian oil imports-finance minister
CHICAGO, Jan 29 (Reuters) - India, the world's fourth-largest oil consumer, will not take steps to cut petroleum imports from Iran despite U.S. and European sanctions against Tehran, its finance minister said on Sunday during a visit to Chicago.
The United States wants buyers in Asia, Iran's biggest oil market, to cut imports to put further pressure on Tehran to rein in its nuclear ambitions. Washington suspects Iran of trying to make nuclear weapons, but Tehran says its nuclear program is for peaceful means.

Euro Coal-Prices tick higher with oil, power
LONDON, Jan 27 (Reuters) - A rise in oil, European power values and tight prompt supply of South African coal pushed coal swaps and physical prices higher by around 50 cents to $1.00 U.S. a tonne on Friday.
"Europe is extremely quiet but we're sold out for February and March and still getting calls from buyers outside Europe who are nothing to do with China," one European trader said.

Gold glimmers, others dim as US growth disappoints
Jan 27 (Reuters) - Gold shone amid a not-so-bright commodities complex on Friday, riding to its best week in three months as disappointing U.S. economic growth added fuel to a rally ignited by the promise of interest rates staying lower for longer.
"With the softer-than-expected GDP reading it means that at a minimum we are going to have a highly accommodative monetary posture," said Mark Luschini, chief investment strategist of Janney Montgomery Scott, a broker-dealer with about $54 billion in assets under management.