Tuesday, August 23, 2011

20110823 1530 Global Market & Commodities Related News.


Stocks, U.S. Futures Rise as Commodities Rally; Treasuries, Dollar Weaken (Source: Bloomberg)
Stocks and U.S. equity-index futures jumped, while commodities rallied for a third day on speculation the Federal Reserve will take steps to bolster the economy and after a gauge showed China’s manufacturing may have contracted at a slower pace. Treasuries and the dollar declined. The MSCI All-Country World Index increased 0.8 percent at 4:12 p.m. in Tokyo, halting a three-day retreat. Standard & Poor’s 500 Index futures added 1.5 percent. S&P’s GSCI Index of 24 raw materials headed for its first three-day rally since June 9, with oil jumping 1.3 percent in New York and copper gaining 1.4 percent. Treasury 10-year yields rose four basis points, while the dollar weakened against 15 of its 16 major peers.
The MSCI gauge of global equities is rebounding from the lowest level since September before central bankers meet this week in Jackson Hole, Wyoming. Last year, Fed Chairman Ben S. Bernanke’s hint of a second round of asset purchases spurred a 28 percent jump in the S&P 500. Preliminary data showed an index of Chinese output may have climbed to 49.8 in August from 49.3 in July. Separate reports will probably show German manufacturing grew at a slower pace and U.S. home sales fell.

Asian shares edge up; gold rises again
SINGAPORE, Aug 23 (Reuters) - Asian shares rose  after modest gains on Wall Street, but remained deep in negative territory for the month, while gold hit another record above $1,910 an ounce as investors continued to fret about the health of the global economy.
"It suggests there's still plenty going on and it's business as usual," said Martin Angel, a dealer at Patersons Securities in Australia.

US new-crop corn hits contract high as ratings fall
SINGAPORE, Aug 23 (Reuters) - Chicago new-crop corn climbed to a contract high , while soybeans rose to a near one-month top as the condition of the U.S. corn and bean crops continued to slide, raising concerns over supplies.
"It is certainly providing some support for the grains markets led by corn," said Brett Cooper, a senior manager of markets at FCStone Australia. "But it is not a surprise as the crop ratings report has not done more than to confirm weather impact on yields."

US Midwest soy at risk of lower yields, too dry
CHICAGO, Aug 22 (Reuters) - Soybean and corn yield potential across the heart of the U.S. Midwest will likely face further losses if rains fail to come soon, a leading agricultural meteorologist said on Monday.
"The driest areas so far this month have stretched from southeast South Dakota, across southern Minnesota, the northern and eastern half of Iowa into central Illinois and southwest Indiana," John Dee, a private meteorologist closely watched by the U.S. grain trade, told the Reuters Global Ags Forum.

Scouts see South Dakota corn potential below 2010
GRAND ISLAND, Nebraska, Aug 22 (Reuters) - Corn yield projections in South Dakota fell 1.7 percent below 2010 forecasts due to a combination of late planting and scorching summer temperatures, scouts on an annual tour found on Monday.
Soybeans also were facing problems but fields in the northern areas of the state that were spared from some of the extreme July heat were faring better than ones in the southern portions of the state.

Mexico's sugar exports to fall from record high
MEXICO CITY, Aug 22 (Reuters) - Mexico's sugar exports to the United States reached a record this season but next year's harvest is expected to shrink due to drought, cutting exports by 14 percent, the head of the national sugar industry chamber said on Monday.
Exports will fall to 1.2 million tonnes in the 2011/12 cycle that begins in November after exporting 1.45 million tonnes in 2010/11, the chamber's director Juan Cortina told Reuters in an interview.

M&A in Brazil sugar cane sector passes peak
SAO PAULO, Aug 22 (Reuters) - Consolidation in Brazil's cane sector has crested, after the 2008 global financial crisis unleashed a wave of mergers and acquisitions in the world's largest sugar industry.
Despite a slowdown after the big deals of 2009 and 2010, milling groups have not announced new investments in greenfield projects. Analysts say new mill investments have to start now to be ready by 2014-15, when the current excess crushing capacity will be exhausted by expansion in the cane crop.

W.Canada harvest 7 pct done - Wheat Board
WINNIPEG, Manitoba, Aug 22 (Reuters) - The harvest of all crops on the Canadian Prairies rose to 7 percent complete in the past week, but remains behind schedule, the Canadian Wheat Board said on Monday.
The harvest is normally 12 percent finished at this time of year, the Wheat Board said. Late planting and cool spring weather has delayed plant development this year.

Ohio corn potential seen variable; soy up from 2010
DEFIANCE, Ohio, Aug 22 (Reuters) - Corn yield prospects in northwest Ohio were highly variable and generally down from last year as planting delays and periods of sweltering heat that rushed crop development dragged down crop potential, scouts on an annual crop tour said on Monday.
But corn in west-central Ohio looked above-average.

Sun, rain mix to boost Ivorian cocoa crop hopes
ABIDJAN, Aug 22 (Reuters) - Ivorian cocoa farmers reported a healthy mix of rain and sun across most of the world's top grower last week, boding well for the 2011/12 main crop after this year's bumper harvest.
Farmers said they were happy as sunshine improved after several weeks of cloudy and cooler weather that had threatened the good growth of the crops during a key period for development ahead of the new season starting in October.

Canaplan takes lowest view yet of Brazil cane crop
BRASILIA, Aug 22 (Reuters) - Brazil's main cane growing region, the center-south, will produce 476 million tonnes of cane this season, the head of analyst Canaplan said Monday, the lowest estimate among any of the main local consultants.
The forecast for the now well-advanced harvest also represents a drop of 30 million tonnes from the analyst's previous estimate of 506 million tonnes, as yields from cane plants overdue renewal tail off sharply.

Brent rises toward $109 as fighting continues in Libya
SINGAPORE, Aug 23 (Reuters) - Brent crude rose toward $109  as fighting in Libya continued and in anticipation of a fall in U.S. crude stockpiles.
"It could take months before oil can start to flow again from Libya," said John Vautrain, a director at energy consulting firm Purvin & Gurtz.

Malaysia's Petronas to start $5.1 bln upstream gas project
KUALA LUMPUR, Aug 23 (Reuters) - Malaysian state oil firm Petronas said on Tuesday it will develop the 15 billion ringgit ($5.1 billion) North Malay Basin project to develop gas and build a pipeline to transport it.
The project comprises nine discovered gas fields about 300 kilometers off the coast of the peninsula. Petronas will also develop a new 200 km pipeline to transport the gas.

Rails, not pipes, may balance distorted oil market
NEW YORK, Aug 23 (Reuters) - U.S. crude oil shipments by railroad could help to end gaping price distortions in world oil markets faster than most traders have been expecting. Rail shipments of crude from the landlocked and oversupplied Midwest to refiners in the Gulf Coast appear set to surge next year, to nearly double the volume now flowing in congested pipelines between the regions.

LONDON, Aug 22 (Reuters) - China's aluminium production dropped a gear in July, a development likely to exacerbate an evolving tightness in the domestic market.
Today's figures from the China Nonferrous Metals Industry Association (CNMIA) showed Chinese production slipping by an annualised 320,000 tonnes from June's record run-rate of 19.03 million tonnes.

Copper up on China Flash PMI, equities
SHANGHAI, Aug 23 (Reuters) - Copper rose , bolstered by gains in equities and by data showing China's factory output remains robust, but worries about global growth prospects continue to weigh on investor sentiment.
"I think base metals are mostly affected by today's HSBC Flash PMI, which is low but still better than many expected. This eases some fears of China's economy slowing down too fast," Jinrui Futures analyst Zhao Kai said.

Brazil mining investment jumps on metals demand
BRASILIA, Aug 22 (Reuters) - Surging investment in Brazil's mining sector will help the country to double iron ore output by 2015 and triple copper production in the same period, the head of Brazil's mining institute, Ibram, said on Monday.
Ibram expects Brazil's iron ore output to more than double to 772 million tonnes by 2015, from 372 million tonnes of the steel ingredient produced in 2010. That is well above the mining ministry's estimate for 585 million tonnes by 2015.

China July refined copper imports rise 8.8 pct on-month
HONG KONG, Aug 22 (Reuters) - China's imports of refined copper rose 8.8 percent to a six-month high in July on spot shipments booked in May and June.
Arrivals at the world's top copper consumer rose to 194,280 tonnes of refined copper in July, extending a 19.7 percent gain to 178,638 tonnes in June, a breakdown of the July data by the General Administration of Customs showed on Monday.

China, global steel output near record in July
LONDON, Aug 22 (Reuters) - Chinese and global steel production fell slightly from the previous month but remained near record levels in July, in what is usually a seasonally slower quarter and despite concerns that oversupply and the economic slowdown may weigh on prices.
Global crude steel production grew by 11.5 percent to  127.477 million tonnes in July, compared to the same month last year. That was not far off a record level of 129.865 million tonnes hit in April.

Gold climbs to record above $1,910 on growth fears
SINGAPORE, Aug 23 (Reuters) - Spot gold soared to an all-time high above $1,910 , scoring a record top for a fourth consecutive session, as persistent worries about global economic growth burnished bullion's safe-haven appeal.
"We are not hearing much good news out of Europe or the United States," said Darren Heathcote, head of trading at Investec Australia.

Record price to pinch India's festive gold demand
MUMBAI, Aug 22 (Reuters) - Record high prices could pinch gold demand in India, the world's biggest consumer, during the key festival buying season in September and October, but investment demand will help ensure record imports in 2011, the head of India's leading trade body told Reuters.    
"If prices stay at current levels, demand will be lower during the festival season. But if prices fall to 25,000 rupees (per 10 grams), then it will rise," Prithviraj Kothari, president of the Bombay Bullion Association, said in an interview on Monday.

Gold shines as Swiss franc's haven appeal dims
LONDON, Aug 22 (Reuters) - Moves by the Swiss National Bank to curb strength of the Swiss franc will fuel investors' insatiable demand for gold, adding to its relentless rise to new record highs as confidence in the franc as a safe store of value dwindles.
Analysts say this could help gold vault $2,000 an ounce within the coming weeks, with the potential for very large spikes if risk aversion on financial markets gains momentum.

Gold Tops $1,910 for First Time (Source: Bloomberg)
Gold advanced to an all-time high above $1,910 as investors sought to protect their wealth against financial turmoil amid speculation that the global economy is slowing. Platinum gained to the highest in more than three years. Bullion for immediate delivery rose as much as 0.8 percent to $1,913.50 an ounce before trading at $1,901.23 an ounce at 2:06 p.m. in Singapore. The metal is up 16.8 percent in August, heading for its best monthly performance since September 1999. Silver gained to the most expensive in more than three months. “Gold has continued to blast ahead even with a relatively strengthening U.S. dollar, strongly performing treasuries and other safe havens,” Peter Richardson, chief metals economist at Morgan Stanley Australia Ltd., said by phone from Melbourne. “All of that tells me that this is really all about preserving real purchasing-power.”

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