OIL: Oil falls from near $120 on Saudi, Gaddafi rumor
NEW YORK, Feb 24 (Reuters) - Oil sank from 2-1/2-year highs near $120 a barrel on Thursday in strong, late-day profit-taking following an unsubstantiated rumor Muammar Gaddafi had been shot and Saudi Arabia's assurances it can counter Libyan supply disruptions.
"After three days of moving to the upside, the market was prone to profit-taking and then we heard the rumor that Gaddafi was dead," said Peter Beutel, president of Cameron Hanover in New Canaan, Connecticut.
COMMODITIES: Oil gains unravel, roiling other markets
LONDON/NEW YORK, Feb 24 (Reuters) - Oil prices surged more than $8 on Thursday, then collapsed, roiling other commodities, as Saudi Arabia prepared to boost crude exports and oil traders spread a rumor that Libyan leader Muammar Gaddafi had been shot.
"The market cannot accommodate another disruption, in our view, with the problems in Libya potentially absorbing half of OPEC's spare capacity," Goldman analyst Jeffrey Currie said in a research note.
GLOBAL MARKETS: Oil steadies after volatile trade, stocks edgy
HONG KONG, Feb 25 (Reuters) - Oil stabilised on Friday after a sharp reversal from a 2-1/2 year peak overnight, calming concerns that a surge in prices would hurt economic recovery.
"But with many economic indicators out next week from the U.S. and ahead of the weekend, which will probably bring more clues about the Libyan situation, investors won't take too many risks," Takahashi said.
USDA to update projection of large US plantings
WASHINGTON, Feb 24 (Reuters) - Sky-high grain prices will bring the biggest surge in U.S. plantings in 14 years, the Agriculture Department says in projections that it will update at its annual Outlook Forum opening on Thursday.
Traders generally agree with USDA's projections of larger corn and soybean plantings this spring. But they expect a record 5 billion bushels of corn will be used to make fuel ethanol in the new marketing year -- 165 million bushels, or 3 percent more than USDA foresees.
US Food-Price Inflation Expected At 3% To 4% This Year (Source: CME)
U.S. consumers are about to be whipsawed by retail food prices. Food prices, which rose in 2010 by the mildest rate since 1962, will jump between 3% and 4% this year, according to a forecast released Thursday by the U.S. Agriculture Department at its annual outlook conference in Washington D.C. Rising grain, livestock and energy costs are putting intense pressure on food manufacturers, restaurants and supermarkets to pass along their higher costs even though post-recession consumers are still leery about paying more for anything, even food. The USDA raised its 2011 food-inflation forecast Thursday from its previous 2011 forecast for a 2% to 3% rise in the government's Consumer Price Index for all food. The all-food CPI rose just 0.8% in 2010. (This story and related background material will be available on The Wall Street Journal website, WSJ.com.)
A combination of strong foreign demand for U.S. commodities, plus tight U.S. supplies, have pushed prices of many food categories sharply higher in recent months. The USDA said retail prices of ground beef and steak in January were higher by 9.9% and 9.8%, respectively, than a year earlier. Retail pork prices, meanwhile, were 9.9% higher in January from a year earlier. The USDA said it expects to see retail prices of cereal and bakery products to climb between 3.5% and 4.5% in 2011 compared to 2010.
Europe mulls higher higher rates; Fed seen on hold
LONDON/WASHINGTON, Feb 23 (Reuters) - European central banks appear to be edging closer to interest rate increases as inflation runs above targets, although fears of stifling fledgling recoveries may yet give policy makers pause.
Two hawkish Federal Reserve officials on Wednesday expressed some sympathy for concerns about higher prices, though the consensus at the U.S. central bank still appears to favor a continuation of its highly stimulative monetary policy.
PRECIOUS-Gold steadies, inflation fears offer support
LONDON, Feb 24 (Reuters) - Gold steadied near seven-week highs on Thursday, as investor fears over inflation stemming from the spike in crude oil were partially offset by pockets of profit-taking after the market's 6 percent rise this month.
As many as 1,000 people may have been killed in the unrest in Libya, where on Wednesday, thousands celebrated as the east broke free of the control of Mummar Gaddafi, who has vowed to crush the revolt.
FOREX-Swiss franc hits record high, dollar falls broadly
LONDON, Feb 24 (Reuters) - The Swiss franc hit a record high against the dollar on Thursday, boosted by safe-haven demand due to ongoing political turmoil in Libya, while the resulting surge in oil prices stung the U.S. currency across the board.
Brent crude oil leapt to its highest since August 2008 on concern that unrest that has cut more than a quarter of OPEC-member Libya's output could spread to other producers including top exporter Saudi Arabia.
U.S. wheat rises for 2nd day, strong demand supports
SINGAPORE, Feb 24 (Reuters) - U.S. wheat gained around half a percent in its second successive daily rise, driven by strong demand and tenders issued by importers in Africa and the Middle East.
"I think buyers who had been waiting for a correction certainly seem to be jumping on this opportunity which is providing support to the market," said Adam Davis, a senior grains trader at Melbourne-based Merricks Capital.
India eyes grain, sugar exports as global prices gain
NEW DELHI, Feb 23 (Reuters) - India's farm minister called on Wednesday for limited exports of wheat, rice and sugar to resume, in an effort to benefit from high global prices of the commodities.
Sharad Pawar's call for exports came as at least 100,000 trade unionists marched through the Indian capital on Wednesday in a protest against high food prices and unemployment.
India, the world's second-largest producer of wheat and rice, has kept a tight control over grain exports since 2007, allowing only limited sales in diplomatic deals, while the nation's stocks swelled after three straight years of bumper harvests.
Brent oil near $120 on Libya; stocks, copper fall
LONDON, Feb 24 (Reuters) - Oil prices hit 29-month highs to near $120 a barrel on growing fears that the unrest in Libya could spread to other oil producing countries including top exporter Saudi Arabia, threatening to derail global growth.
"The market cannot accommodate another disruption, in our view, with the problems in Libya potentially absorbing half of OPEC's spare capacity," Goldman Sachs' Jeffrey Currie said in a research note.
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