Thursday, May 5, 2011

20110505 1533 Global Commodities Related News.

Malaysia's April palm oil stocks seen at 6-month high
KUALA LUMPUR, May 5 (Reuters) - Malaysian palm oil stocks probably hit a six-month high in April from a month earlier as strong production outpaced modest growth in exports, a Reuters survey showed on Thursday.
Stocks in the world's No.2 producer likely rose nine percent to 1.76 million tonnes, marking the highest level since October but moderating the growth pace from March, a median survey of five plantation houses showed.

GRAINS-U.S. corn extend gains on tight supply, forecast rain
SYDNEY, May 5 (Reuters) - U.S. corn futures rallied for a third straight day on Thursday, supported by tight old crop supplies in the United States and forecast rain likely to slow planting which is already running late in the Midwest corn belt.
"Corn will continue to hold out on its own while there's no surprise there's some recovery in soybeans and wheat futures," said Brett Cooper, senior manager, markets, for FCStone

Mexico cotton output seen up on high price-attache
WASHINGTON, May 4 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Mexico:
"Mexican cotton production in marketing year 2011/12 is forecast to increase to 1.14 million bales as high international prices are supporting expanded production on planted areas that had been abandoned or directed to other commodities.

US WEATHER WATCH-Cool rain stalls Midwest corn and soy
Continued rains and cool temperatures in the Midwest are stalling corn seedings and delaying spring fieldwork ahead of the soybean planting season. The corn planting pace continues to fall far behind average levels, leading to concern about potential production declines.
Dryness plagues the Plains hard red winter wheat region as the crop begins jointing an heading in the south. Some chance of rain over the next week in the east and north, away from the large acreage areas of the southwest.

Greece 2011/12 sugar output to remain steady-attache
WASHINGTON, May 4 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Greece:
"According to unofficial estimates, 2011/2012 sugar production, consumption and trade is forecast to remain steady from the previous year. The Hellenic Sugar Industry is the only sugar producer in Greece and one of the most significant agricultural industries of the country.

US biodiesel production set to ramp up
CHICAGO, May 4 (Reuters) - The U.S. biodiesel industry is on track to rev up production after the renewal of a tax credit, with analysts expecting a big increase in soyoil usage to produce the biofuel in a government report on Thursday.
The tax credit, which expired at the end of 2009, was renewed by Congress in December 2010. The industry took about two months to get back in gear.

Brent falls below $121 on US crude build, economic concerns
SINGAPORE, May 5 (Reuters) - Brent crude dipped below $121 a barrel on Thursday, pressured by a sharp rise in U.S. crude stocks, disappointing economic data from the world's biggest energy consumer and concerns over Chinese inflation.
"The inventory numbers and concern over the U.S. economy are the main factors driving the markets lower today," said Michael Lo, a Hong Kong-based analyst with Nomura International.

China may introduce oil, gas resource tax of up to 10 pct-paper
SHANGHAI, May 5 (Reuters) - China may introduce a resource tax of between five to 10 percent on the domestic sales of crude oil and natural gas as part of the country's overall tax reform, the Shanghai Securities News said on Thursday.
Citing a revised draft of the proposed regulation, the paper said the coal levy would continue to be based on total tonnage sold instead of revenue collected. The coal tax may be raised to between 0.30 to eight yuan per tonne from the current 0.30 to five yuan.

U.S. ethanol production down slightly in latest week
KANSAS CITY, May 4 (Reuters) - U.S. ethanol production fell slightly in the latest week, the government said on Wednesday, resuming a series of output reductions after a jump the previous week.
U.S. production of the alternative fuel totaled 875,000 barrels per day (bpd) for the week ending April 29, down from 883,000 the prior week, the Energy Information Administration said.

Shanghai copper hits 5-mth low, LME extends losses
SINGAPORE, May 5 (Reuters) - Shanghai copper dropped to five-month lows and London futures hit their lowest since mid-March in a broad decline across commodities spurred by worries over the U.S. economy and further monetary tightening in China.
"We've seen an easing in crude oil and gold prices in this broad commodity selloff, so it's only logical that base metals, which are fundamentally weaker, should fall as well," Shanghai CIFCO Futures analyst Zhou Jie said.

Silver slips to one-month low after margin hike; gold steady
SINGAPORE, May 5 (Reuters) - Spot silver prices slid for the fifth straight day on Thursday to the lowest in a month, down by a fifth since hitting a record high a week ago, after another hike in margin requirements for U.S. silver futures squeezed some of the speculative froth out of the market.
"There is liquidation going on in silver after prices rose too much and too fast. Nobody knows where the bottom is, but I don't think there is much room below $35," Ronald Leung, a dealer at Lee Cheong Gold Dealers in Hong Kong, said.

Silver triggers broad decline in commodities
HONG KONG, May 5 (Reuters) - Silver nursed losses on Thursday after suffering its biggest three-day drop in five years on heavy profit taking while the euro consolidated gains against the dollar before the European Central Bank meeting where it is expected to reinforce its hawkish outlook.
"This is more of a consolidation phase and we are likely to see low double digit returns this year after a recent nice run up," said Binay Chandgothia, portfolio manager at Principal Global Investors in Hong Kong. The firm manages more than $200 billion in assets worldwide.

S.African gold miners to report lower output in Q1
JOHANNESBURG, May 4 (Reuters) - South Africa's big three gold miners will report drops in production in the first three months of 2011 but earnings will be lifted for at least two of the companies because of other factors.
And as the gold price scales to lofty new peaks analysts say the miners are set to deliver better results as the year goes on, though seasonal challenges still loom, such as higher power supply tariffs in the South African winter.

Copper demand, price to remain high-Aurubis
PIRDOP, Bulgaria, May 4 (Reuters) - Europe's biggest copper maker, Aurubis , expects overall demand for copper to remain strong this year with prices picking up at times again to $10,000 a tonne, a senior manager of the company said.
Peter Willbrandt, member of the executive board in charge of primary copper production said late on Tuesday that a recovering economy in emerging markets and Europe, and the need for reconstruction of Japan was increasing demand for copper.

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