Thursday, April 28, 2011

20110428 1539 Global Market & Commodities Related News.

Dollar depressed, stocks cheer easy Fed
SYDNEY, April 28 (Reuters) - The dollar slumped to three-year lows on Thursday, pushing U.S. crude Oil to a 2-1/2 year high, while Asian stocks rose as investors bet that the easy U.S. monetary policy will continue to drive money to riskier assets.
"The reason for the dollar's broad weakness is that market players think it makes sense to use the dollar to fund investment in various assets, since U.S. interest rates are likely to stay low for a while," said Daisuke Karakama, market economist at Mizuho Corporate Bank in Tokyo.

Corn rises on Bernanke comments, wheat extends losses
SINGAPORE, April 28 (Reuters) - U.S. corn futures rose 0.7 percent on Thursday, while soybeans firmed as the dollar tumbled after U.S. Federal Reserve Chief Ben Bernanke gave no sign the central bank was about to tighten monetary policy.
"We are getting planting delays and the balance sheet even for the next season looks pretty tight," said Abah Ofon, an analyst with Standard Chartered Bank in Singapore.

U.S. grain exports face hurdle if floods worsen
CHICAGO, April 27 (Reuters) - High water on the Mississippi River has slashed grain shipments by about 40 percent and could pose a threat to exports from the U.S. Gulf, the main exit for agricultural products to world markets, industry sources said Wednesday.
Grain exporters have for the moment been able to continue loading vessels at Gulf terminals, drawing from supplies they have on hand and from river elevators not yet hit by flooding, which in some areas of the Midwest was the worst in more than 70 years.

Indonesia scraps soybean oil import tax in duty overhaul
JAKARTA, April 27 (Reuters) - Indonesia has scrapped import duties on a number of raw materials and goods, including soybean oil, in a drive to boost domestic manufacturing industries, a government official said.
Soybean oil, chemical feedstocks such as ethylene for plastics, and various machines for the textile and electronics industries were among 182 products that saw import duty scrapped from 5 percent previously, said Bambang Brodjonegoro, acting head of the fiscal office.

No beneficial rain seen in key French grain areas
PARIS, April 27 (Reuters) - The key grain-growing regions in northern France will receive virtually no rainfall that could relieve drought-hit grain plants, weather forecaster Meteo France said on Wednesday.
"For the northern regions there will be no beneficial rain in the coming seven days," Meteo France forecaster Dominique Raspaud told Reuters.

Indonesian cocoa industry calls for sustainability system
JAKARTA, April 27 (Reuters) - The Indonesian Cocoa Association (Askindo) has called for government backing to regulate and promote sustainable cocoa in the world's No.3 producer, the group's chairman said on Wednesday.
A sustainable cocoa system would look at cultivation, land use practices and include traceability certificates, Zulhefi Sikumbang, chairman of Askindo, told a news conference.

China seeks Vietnam pepper, coffee growers cut trees
HANOI, April 27 (Reuters) - Chinese buyers have been in Vietnam seeking to buy black pepper at high prices, raising expectations of good gains that have prompted some coffee farmers to switch to growing pepper instead, a state-run newspaper and traders said on Wednesday.
Pepper prices in Vietnam, the world's largest producer and exporter of the spice, have more than doubled to as high as 120 million dong ($5,825) a tonne this week from 52 million dong a year ago due to production falls in many producing nations.

Copper buying resumes on LME and ShFE on Fed meeting
SINGAPORE, April 28 (Reuters) - Copper rose on London and Shanghai on Thursday, as traders resumed buying the metal ahead of a long weekend, after the Federal Reserve signalled it would not raise interest rates any time soon.
"For me the main reason for this morning's rally is that a rebound is due after copper prices had fallen so much in the past few sessions," said Great Wall Futures analyst Li Rong.  

Brazil aluminum use seen rising 13 pct in 2011
BRASILIA, April 27 (Reuters) - Brazilian consumption of aluminum products should rise around 13 percent from 2010's 1.3 million tonne total, the Brazilian Aluminum Association, ABAL, said on Wednesday.
Production of aluminum cables and wires alone should rise 58.4 percent, the association said.

Crude rises on weak dollar; U.S. gasoline inventory slides
SINGAPORE, April 28 (Reuters) - U.S. crude futures rose to their highest in 2-1/2 years on Thursday as the Federal Reserve appeared in no rush to tighten its monetary policy, weakening the dollar, and as gasoline stockpiles fell more than double the forecast.
"The main factor is that the U.S. monetary policy will remain accomodative for quite a long time," said Ben Westmore, commodities economist at the National Australia Bank. "For the oil market in particular, the decline in gasoline inventories in the U.S. is a positive for prices."

US gold hits record, silver jumps on weak dollar
SINGAPORE, April 28 (Reuters) - U.S. silver futures leapt as much as 6 percent and gold futures reached a record high on Thursday, underpinned by a weakened dollar after the U.S. Federal Reserve signalled no rush to reverse its accommodative monetary policy.
"Gold has followed the misfortunes of the dollar," said Darren Heathcote, head of trading at Investec Australia.

Oil firm tax breaks must end quickly-US Sen. Reid
WASHINGTON, April 27 (Reuters) - U.S. Senate Majority Leader Harry Reid said he would move quickly to pass legislation ending tax breaks for major U.S. oil companies, as President Barack Obama requested this week.
"We need to take away the subisidies of these five major oil companies," Reid told reporters, adding that the companies have "broken all records" for profits.

Republicans turn up heat on Obama over oil prices
WASHINGTON, April 27 (Reuters) - With Americans upset about rising gasoline prices, Republicans in the U.S. Congress aim to fix the blame on one person when they return next week from recess: President Barack Obama.
Congress wrapped up its last work session on April 15 with Democrats and Republicans in a blistering debate about budget deficits and the size of the federal government.

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