Wheat up 0.8 pct as market eyes Egypt unrest, firm oil
SINGAPORE, Jan 31 (Reuters) - U.S. wheat futures bounced back, rising 0.8 percent following a decline of more than 2 percent on Friday as a civil unrest in the world's biggest wheat importer, Egypt, kept investors on tenterhooks.
"We need to find out more before making claims of declining Egyptian imports and we need to remember that unrest which is affecting northern Africa is largely due to food price inflation," said Luke Matthews, a commodity strategist at the Commonwealth Bank of Australia.
Gold firms after rally on Egypt, ETF at 8-mth low
SINGAPORE, Jan 31 (Reuters) - Gold edged up, extending gains seen in the previous session as buying continued on fears the unrest in Egypt will spread across the Middle East, but selling in the physical side and a drop in ETF holdings to an eight-month low capped gains.
"We need to see the holdings in the ETF increase again before we can see gold prices start to head up and make a new high. ETF in itself is a reflection of a longer-term demand for gold," said Ong Yi Ling, investment analyst at Phillip Futures in Singapore.
Asia stocks fall, oil nears $100 on Egypt fears
HONG KONG, Jan 31 (Reuters) - Brent crude futures climbed near $100 a barrel and Asian stocks fell, hit by fears of unrest throughout the Middle East sparked by deadly protests in Egypt.
"To the extent that the instability continues, investor reaction will most likely push oil and Treasury bond prices higher, and global equities lower." Mohamed El-Erian, co-chief investment officer at bond giant PIMCO, told Reuters.
OIL: Brent oil surges to 28-month peak on Egypt unrest
SINGAPORE, Jan 31 (Reuters) - Brent oil surged to a 28-month peak near $100 a barrel on Monday on concerns anti-government protests in Egypt could spread instability across the Middle East and disrupt oil shipments through the Suez Canal.
"The Egyptian situation looks to be the primary factor ... on what this could mean in terms of stability for such a vital region for energy production," said David Land, chief market analyst at CMC Markets.
COMMODITIES: Oil near $100 in London, gold jumps, on Egypt scare
NEW YORK, Jan 28 (Reuters) - Oil closed near $100 a barrel in London and gold ended with its biggest daily gain in two months while wheat slumped on Friday as Egypt's worsening political crisis prompted mixed reaction in commodity markets.
"I think some people are starting to worry about what we call 'normal commercial trade,'" Dan Basse, president at Chicago's AgResource Co, said, commenting on the impact street protests in Egypt could have on movement of wheat through the country.
GLOBAL MARKETS: Asian stocks to fall on Egyptian turmoil
WELLINGTON, Jan 31 (Reuters) - Asian stocks are likely to fall on Monday, with safer assets such as gold and bonds likely to benefit as unrest in Egypt continues to rattle world markets.
"The greater fear is that the turmoil could spread to other Middle East countries, including even Saudi Arabia. If that happens, then all bets on oil prices are off," Zollner said.
UK Agriculture Minister Calls For Cuts To EU Farm Subsidies (Source: CME)
The U.K.'s agriculture minister called for substantial cuts to the European Union's farming subsidies program at a time when many of the bloc's member states are facing economic hardship. In a response to proposed reforms to the EUR55 billion scheme, Caroline Spelman said in a letter to E.U. farm commissioner Dacian Ciolos that the subsidies should face the same "hard choices being made elsewhere in the E.U." E.U. officials have put forward a paper of plans to reform the controversial Common Agricultural Policy from 2014. But the proposals contain no details of any cut to the size of the payments given to farmers.
"There must be a very substantial cut to the CAP budget in the next financial framework," the letter said. "We also want to see reform of trade-distorting elements of the CAP, particularly with respect to subsidies." The letter comes as the E.U. Commission released figures showing that 80% of beneficiaries received around 20% of the direct payments in 2009 in the E.U. group of 12.
Argentina Grain Port Strike Enters Third Day, Affects More Ports (Source: CME)
A strike that has disrupted activity at key river ports that ship a significant portion of Argentina's grain and edible oil exports to global markets entered its third day on Friday, with unionized workers blocking access to additional ports. Walter Cabrera, secretary general of the San Lorenzo chapter of Argentina's powerful Confederacion General de Trabajadores union umbrella group, said workers are currently picketing 17 ports to demand higher wages for its members who work in and around the ports. "We are demanding equal wages for all the workers in the oilseed crushing/port complex," Cabrera said in a telephone interview. The union is allowing security guards and some crushing mill workers to enter the ports to ensure a minimum level of industrial safety, he added.
Spokespersons for the San Lorenzo Chamber of Commerce, whose members include grain exporters, and the industry trade group representing Argentina's edible-oil makers and grain exporters, CIARA-CEC, weren't immediately available for comment. CIARA-CEC called on the federal government through the Labor Ministry to intervene in the conflict. The Labor Ministry can order workers to lift a strike while union leaders and employers negotiate a settlement. Labor Ministry officials weren't available for comment. The conflict started Wednesday at about 10 ports and related crushing plants that produce edible oils largely from soybeans near the city of San Lorenzo, Santa Fe Province. About three quarters of Argentina's agriculture exports are shipped from river ports clustered in and around the city of Rosario. Argentina leads the world in soymeal and soyoil exports, and is the third-largest soybean exporter.
San Lorenzo, located about 20 kilometers north of Rosario, alone is home to a dozen ports operated by major international grain exporters, including Cargill, Noble Argentina SA, Louis Dreyfus SA, and Bunge Ltd. Picketers affiliated with the CGT San Lorenzo are demanding the same minimum wage of 5,000 pesos ($1,256) a month won by the edible-oil-workers union in San Lorenzo last month following a strike. According to Cabrera, his workers earn about half that amount. The strike's impact on grain and edible oil shipments and the prices for those commodities will ultimately depend on the duration of the dispute. January is typically a period of low activity at the grain ports clustered along the Parana River as farmers only recently finished soy planting, while the sunflower harvest is still in its early stages. Cabrera said its to early to say when the conflict will end, adding that the union hasn't had any contact with the San Lorenzo Chamber of Commerce or grain exporters since the strike began.
US, Japan told time running out to deal with debt
TOKYO/WASHINGTON, Jan 28 (Reuters) - Japan and the United States faced new pressure to confront their swollen budget deficits as the IMF and rating agencies demanded more evidence they can bring their public debts under control.
The International Monetary Fund said the G7's two biggest economies needed to spell out credible deficit-cutting plans before the markets lose patience and dump their bonds.
U.S. manufacturing profits suggest stronger economy
NEW YORK/CHICAGO, Jan 27 (Reuters) - U.S. manufacturing companies posted higher-than-expected results, as sharply improved margins boosted profits amid strong industrial demand and growth in emerging markets.
Companies including Caterpillar Inc , Tyco International Ltd and Eaton Corp reported strong sales and earnings, and investors were looking ahead for signs the industrial rebound would begin to affect the wider economy and boost employment.
Mixed U.S. data points to growth momentum
WASHINGTON, Jan 27 (Reuters) - U.S. housing and factory data on Thursday showed the economy still gaining strength in December but at a pace unlikely to cause the Federal Reserve to rethink its stimulus program. Economists said they expected Friday's reading of gross domestic product to show the world's biggest economy picking up speed albeit short of the pace needed to bring down unemployment significantly.
PRECIOUS-Gold up from 4-month lows ahead of U.S. data
LONDON, Jan 28 (Reuters) - Gold edged higher as caution dogged the financial markets ahead of U.S. growth data due later, having earlier hit a near four-month low as a better economic outlook dented safe-haven buying of the metal.
Spot gold was bid at $ an ounce at GMT against $1,312.24 late in New York on Thursday. U.S. gold futures for February delivery fell $ an ounce to $.
FOREX-Yen revives on Japan exporter demand
LONDON, Jan 28 (Reuters) - The yen rose on Friday as demand from Japanese exporters and speculators helped the currency to claw back some losses from a broad sell-off triggered the previous day by a cut to the country's credit rating.
The euro was supported near a two-month high versus the dollar, and analysts said the U.S. currency may struggle if growth data later in the day fails to change the view that Federal Reserve interest rates are set to remain at rock-bottom levels.
Wheat steady near 29-month top, soy eases on LatAm rains
SINGAPORE, Jan 28 (Reuters) - U.S. wheat futures edged higher trading close to 29-month highs as investors awaited news on import tenders from the Middle East and Africa for price direction, while soybeans were under pressure following forecasts of rains in Argentina.
"I think the wheat market is looking forward to a Saudi tender which might provide support to the market but we have to see how much they buy," said Adam Davis, a senior grains trader at Melbourne-based Merricks Capital.
Indonesia suspends rice, soybean duties to combat inflation
JAKARTA, Jan 28 (Reuters) - Indonesia will suspend import duties on rice, soybeans and wheat as part of government efforts to fight inflation and the president warned about the global risks posed by scarce resources, as countries grapple with escalating food costs.
Rising food prices across many parts of the world have been partly responsible for a number of protests in the last week and world leaders warned on Thursday they risked stoking more unrest and even war.
Argentine grains firms ask gov't to resolve strike
BUENOS AIRES, Jan 27 (Reuters) - Grains exporters called on the Argentine government on Thursday to help end a pay strike before it disrupts shipments from one of the world's biggest food suppliers.
Soy-crushing plants in and around the central city of Rosario account for about 80 percent of soybean oil and meal output from the top global exporter, but activity is slow at this time of year because the harvest has yet to begin.
Euro rally falters, stocks eye U.S. GDP
LONDON, Jan 28 (Reuters) -The euro's rally against the dollar faltered and stocks opened weaker ahead of U.S. fourth-quarter GDP numbers on profit taking, although both look set to end the week in the black. "Barring a nasty return of sovereign-debt related concern (still likely at some point), the likelihood of the ECB leading the Fed by some distance in its tightening cycle suggests EUR/USD can rise further," he added.
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