Monday, April 18, 2011

20110418 1747 Global Market & Commodities Related News.

Stocks take China tightening in stride, euro falls
HONG KONG, April 18 (Reuters) - Asian stocks rose on Monday as investors bet that China's latest round of policy tightening won't dent prospects of a global economic recovery while the euro weakened on a broad wave of profit-taking.
China on Sunday raised banks' reserve requirements for the fourth time this year. The move was not a surprise as market players had predicted more tightening after last week's data showed an acceleration in inflation.

U.S. crude slips below $109,shrugs off Saudi output cut
SINGAPORE, April 18 (Reuters) - U.S. crude futures slipped below $109 a barrel on Monday after three days of gains, as fears that high prices would dampen demand overrode concerns over a cut in Saudi oil output.
"The market had a great run on Friday, but oil continues to underpin inflationary fears as people start to worry how high it's going to get," said Ben Le Brun, market analyst with CMC Markets in Sydney.

LNG long-term prices seen rising on Qatar-Japan deal
TOKYO, April 18 (Reuters) - Long-term gas prices are likely to rise after top liquefied natural gas exporter Qatar announced at the weekend it would supply an extra 4 million tonnes, or more than 60 cargoes, to Japan over the next 12 months, traders said on Monday, possibly diverting supplies from Europe.
Japan is battling to minimise power shortages in the aftermath of a devastating earthquake and subsequent tsunami in March that knocked out more than 9 gigawatts of nuclear power supply.

Saudi slashes oil output, says market oversupplied
KUWAIT, April 17 (Reuters) - Saudi Arabia's oil minister said on Sunday the kingdom had slashed output by 800,000 barrels per day in March due to oversupply, sending the strongest signal yet that OPEC will not act to quell soaring prices.
Consumers have urged the exporters' group to pump more crude to put a cap on oil, which surged to more than $127 a barrel this month, its highest level in 2 1/2 years amid unrest in North Africa and the Middle East.

Iran oil supply stable, payment talks ongoing: India
KUWAIT, April 17 (Reuters) - India continues to receive normal shipments of oil from Iran and discussions between the two countries are ongoing over how India will pay for its crude imports, the country's oil minister said on Sunday.
India has been searching for a permanent method to make payments to Iran for crude oil imports since its central bank scrapped a clearinghouse system in December.

Gold hits record on inflation fear; silver at 31-yr high
SINGAPORE, April 18 (Reuters) - Spot gold hit a record high and silver rose to a 31-year high on Monday, fuelled by concerns of rising inflation globally, and as a lingering euro zone sovereign debt crisis continued to boost safe-haven demand in precious metals. 
"It wouldn't be a surprise to see gold push higher in the   current environment," said Darren Heathcote, head of trading at   Investec Australia, adding that investors were concerned about   inflation, especially when oil prices remain high.

Copper ticks up; China policy eyed, technicals point higher
SINGAPORE, April 18 (Reuters) - Copper prices reversed early losses on Monday, focusing on a more positive technical outlook, with some in the market viewing Sunday's reserve ratio hike as a step closer to the end of the monetary tightening cycle in China.
"Each time China raises rates, the market reacts less and less. The level of inflation is still of great concern, but each increases in interest rates and ratios takes us closer to the end of the tightening cycle," said a trader in Hong Kong.

Tokyo Steel leaves all prices unchanged in May
TOKYO, April 18 (Reuters) - Tokyo Steel Manufacturing Co , Japan's biggest construction steel maker, said on Monday it would leave its steel prices for May shipments unchanged from April, the second month in a row that prices have been kept steady.
Last month's devastating earthquake and tsunami in northeastern Japan crippled production for many manufacturers,  disrupted supply chains, delayed public works and other construction projects and resulted in less capital spending.

U.S. corn falls half pct on Goldman view, wheat steady
SINGAPORE, April 18 (Reuters) - U.S. corn futures slid around half a percent on Monday, losing more ground after last week's selloff as downbeat outlook from Goldman Sachs and substitution of corn in favour of wheat weighed on the market.
"In the corn market, we expect profit-taking to go on and also there is speculation that animal feed makers are using feed wheat as a substitute for corn," Ker Chung Yang, an analyst at Phillip Futures in Singapore.

La Nina to bring rains to Vietnam early this year
HANOI, April 18 (Reuters) - The rainy season will arrive in Vietnam's Central Highlands coffee belt and in the southern region that includes the Mekong Delta food basket later this month, which is earlier than usual, a state-run newspaper reported on Monday.
Early rains could help ease extensive dry conditions now facing the Central Highlands, which produces 80 percent of the coffee output in the world's second-largest producer of the commodity after Brazil.

Tight corn stocks boost prices for early cut crops
CHICAGO, April 15 (Reuters) - U.S. grain exporters are scrambling to book corn for August and September shipment to ensure they don't run out of the grain at a time when stocks are fall to their tightest level since the 1930s.
Trade sources said exporters are bidding to buy corn at the highest basis values in at least 15 years for August shipment, the end of the 2010/11 season when stocks are expected to be at 675 million bushels -- an 18 day supply -- in top corn exporter, the United States.

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