Stocks fall as euro crisis saps confidence
SINGAPORE, Sept 14 (Reuters) - Asian stocks, U.S. index futures and the euro fell as investors remained unconvinced that euro zone leaders have a coherent plan to tackle the bloc's sovereign debt problems, which many fear could trigger a new banking crisis.
"Some of the European banks may have to recapitalise their balance sheets with government assistance. It's creating a lot of nervousness and uncertainty," said Simon Bonouvrie, portfolio manager at Platypus Asset Management in Sydney.
World Must Cut Deficits, Not Rely on China: Wen (Bloomberg)
Chinese Premier Wen Jiabao, facing calls to widen support for indebted European countries, signaled that developed nations should cut deficits and create jobs rather than relying on China to bail out the world economy. “Countries must first put their own houses in order,” Wen said today at the World Economic Forum in the Chinese city of Dalian. “Developed countries must take responsible fiscal and monetary policies. What is most important now is to prevent the further spread of the sovereign debt crisis in Europe.” Stocks dropped in Asia as Wen's comments damped optimism that China can help stabilize the euro-region, after Italy this month followed Spain, Portugal and Greece in seeking Chinese investment. Wen said that the sovereign debt crisis in Europe is spreading, and a former adviser to China's central bank said the nation should avoid buying bonds from European countries where leaders and central bankers are in disarray.
European Stocks Gain; U.S. Futures Pare Drop (Bloomberg)
European stocks rose, erasing earlier losses, amid speculation China may still offer support for the region even after Premier Wen Jiabao said countries must not rely on bailouts. U.S. index futures pared their retreat and Asian shares dropped. The Stoxx Europe 600 Index advanced 0.8 percent to 222.56 at 8:54 a.m. in London, having earlier lost as much as 1 percent. The index has still plunged 24 percent from this year’s peak in February as the debt crisis spreads from Greece to the larger economies of Italy, Spain and France.
MSCI Asia Pacific Index fell 1.7 percent today to its lowest since August last year. Standard & Poor’s 500 Index futures declined 0.1 percent, having earlier retreated as much as 1.5 percent. China is still willing to buy bonds of nations hit by the debt crisis, Caijing reported on its website, citing Zhang Xiaoqiang, a vice chairman of the National Development and Reform Commission.
FOREX-Euro clings to gains on short-covering
TOKYO/SYDNEY, Sept 14 (Reuters) - The euro held on to modest gains, as hedge funds trimmed short positions in case EU leaders surprised markets by making progress on Greece's debt crisis in a conference call later in the day, though they said they were not holding their breath on this.
"I wouldn't read too much into today's moves. It's short-covering after the currency has fallen a lot recently. With no solution to Europe's problems in sight, the euro remains vulnerable," said Tsutomu Soma, manager of foreign securities at Okasan Securities.
CoffeeNetwork sees record 2012/13 global crop
ANTWERP, Belgium, Sept 13 (Reuters) - World 2012/13 coffee output is expected to reach a record 142 million 60-kg bags, up from 135 million the previous year, analysis firm CoffeeNetwork said on Tuesday.
Speaking on the sidelines of the World Coffee Outlook Conference, CoffeeNetwork analyst Andrea Thompson said the next crops from top world producers Brazil and Vietnam were expected to be at record levels.
Libya buys more Russian wheat
LONDON, Sept 13 (Reuters) - Libya has bought 100,000 tonnes of Russian milling wheat in recent weeks and will need a further 500,000 tonnes of wheat in the coming months as it recovers from months of war, a trading company involved in Libyan grain deals told Reuters.
Libya was a big importer of food before six months of fighting interrupted supply chains. The ruling interim council is struggling to assert its control over the entire country and capture a handful of stubbornly defended towns that still back ousted leader Muammar Gaddafi.
Australia's wheat exports to Indonesia seen rising
JAKARTA, Sept 13 (Reuters) - Australia's wheat exports to Indonesia are expected to rise around 30 percent in the year to September, with better growing conditions giving suppliers a bigger foothold in vital Asian markets, Wheat Exports Australia (WEA) said on Tuesday.
Indonesia, which relies entirely on icornmports for its wheat, currently gets around 60 percent of its supplies from Australia, with Canada and the United States accounting for about 30 percent.
US corn, wheat tick higher after selloff; soy dips
SINGAPORE, Sept 14 (Reuters) - Chicago grains edged higher with corn recovering from a 4-week low and wheat rising 0.3 percent after sliding to its lowest in more than a month in the last session, amid concerns over declining demand for U.S. supplies.
"Yesterday, we saw a sharp selloff in corn and wheat and in early trading for today there is some bargain hunting as corn supplies are tight," said Lynette Tan, an analyst with Phillip Futures in Singapore.
Argentine 2011/12 soy crop seen at 52-53 mln T
ROSARIO, Argentina, Sept 13 (Reuters) - Argentina's 2011/12 soy harvest is expected at 52 million to 53 million tonnes and this season's corn crop is seen at about 30 million tonnes, Agriculture Secretary Lorenzo Basso told Reuters on Tuesday.
Argentina is the world's No. 1 exporter of soyoil and soymeal, as well as the third-largest global supplier of soybeans. The South American country is also the No. 2 corn exporter after the United States.
Argentina to authorize 11/12 corn exports 7-8 mln T
ROSARIO, Argentina, Sept 13 (Reuters) - Argentina will authorize 2011/12 corn exports of between 7 and 8 million tonnes, Deputy Agriculture Secretary Oscar Solis told Reuters on Tuesday.
The South American country could also approve 2010/11 corn exports of between 1 and 1.5 million tonnes, Solis said.
Argentina is the world's No. 2 corn exporter after the United States.
Canada farm department adjusts crop estimates
WINNIPEG, Manitoba, Sept 13 (Reuters) - Canada's farm department raised its harvest forecast for wheat and lowered it for canola to match Aug. 24 forecasts by Statistics Canada.
Agriculture Canada released its grain and oilseed outlook, which is based on analysis not a farmer survey, on Tuesday.
Brazil 11/12 cotton output seen higher - trade group
SAO PAULO, Sept 13 (Reuters) - Farmers in Brazil may cut area planted to cotton next season due to competition from soy and corn but output could rise as production focuses on choice fields, Brazilian cotton exporters' association Anea said.
Cotton competes for land with soy and corn in Brazil's main summer crop, and persistently high prices for the grains could mean less available area for production of the lint.
Colombia '11 main coffee crop may be hit by rains
BOGOTA, Sept 13 (Reuters) - Colombia's main coffee harvest later this year may be hit by heavier-than-normal rains due to the reappearance of La Nina, throwing into doubt growers' production targets, officials and industry players said.
Colombia's coffee production fell through the first half of 2011 after heavy rains caused by the La Nina weather anomaly hit crops during their vital flowering stage last year, and now farmers fear a return of the weather phenomena.
Brazil coffee crop seen record for off-year--gov't
SAO PAULO, Sept 13 (Reuters) - Brazil's 2011/12 coffee crop forecast was slightly reduced on Tuesday by the Agriculture Ministry's crop supply agency Conab, but the output would still be the highest ever for an off-year harvest.
The crop was estimated at 43.15 million 60-kg bags, down from the 43.5 million bags projected in May, Conab said in its third forecast of the current crop that recently ended harvest.
Russia 2011/12 grain exports may exceed 20 mln T
Sept 13 (Reuters) - Russian grain exports in the current 2011/12 crop year may exceed 20 million tonnes, a senior government official said on Tuesday, roughly in line with estimates from SovEcon analysts who expect the record pace in recent months to tail off after October.
"We believe that 20 million tonnes is not a limit (for exports)," First Deputy Prime Minister Viktor Zubkov told a teleconference with regional officials.
US soy at risk of damage from forecast freeze
CHICAGO, Sept 13 (Reuters) - A crop-damaging freeze was expected in the U.S. Midwest this week, raising more concerns about the harvest potential of crops that have suffered through adverse weather conditions since spring planting.
The immature soybean crop in the Midwest was most at risk to damage from the cold snap, which was forecast to arrive about two to 2-1/2 weeks earlier than usual.
Oil falls as market seen capped by Europe crisis
SINGAPORE, Sept 14 (Reuters) - Oil fell pulling U.S. crude off six-week highs, as the dollar strengthened and investors saw little upside from declining inventories in an environment where the euro zone debacle is overshadowing tightening supply.
"Fundamentally, this market should be declining further," Hasegawa said. "We are seeing a decline in inventories, but that is not a serious matter, while the financial markets are a very concerning matter. There is no reason for crude to go higher, so we are seeing profit taking."
EU plans ban on new investment in Syrian oil
BRUSSELS, Sept 13 (Reuters) - European Union governments reached a preliminary agreement on Tuesday to ban European companies from making new investments in Syrian oil exploration, production and refining industries, EU diplomats said.
Pending final approval, the latest round of Europe's economic sanctions against the government of President Bashar al-Assad could go into effect next week, they said.
Miners look to reforms to boost Philippine mining
MANILA, Sept 13 (Reuters) - Investment opportunities in a bullish metals market and reforms to perk up the Philippine mining industry will dominate talks at this week's industry conference, but policy flip-flops are expected to remain a hot issue distracting investors.
The ban on open-pit mining in South Cotabato in the southern Mindanao region and the mining moratorium by local governments in other provinces, despite an investor-friendly national law, continue to worry business groups, analysts say.
China's steel output dip in Aug, Baosteel up Oct prices
SHANGHAI, Sept 13 (Reuters) - China's crude steel output fell 0.9 percent to 58.75 million tonnes in August from the previous month as several steel mills reduced production due to maintenance, official figures showed.
Data released by the National Bureau of Statistics on Tuesday showed that China's daily crude steel output fell below 1.9 million tonnes for the first single month this year, with the mills scheduling maintenance to take advantage of weak consumption season over the summer period.
Guinea launches mining contract review
CONAKRY, Sept 13 (Reuters) - Guinea will launch a nationwide review of mining contracts to root out "unconscionable provisions" granted by previous rulers, and has toned down Chinese involvement in the resource sector, Mines Minister Mohamed Lamine Fofana told Reuters.
The move comes after the West African state, the world's top supplier of the aluminum ore bauxite and whose iron ore reserves have drawn billions of dollars in investments, passed a new mining code that more than doubles the state share in projects.
China refined copper, lead concentrate output at record
SHANGHAI, Sept 13 (Reuters) - China's refined copper and lead concentrate production hit record highs in August due to steady restocking by copper users and a ramp-up in battery output.
Lead concentrates, the raw material for refined lead, saw a massive jump in production in August, up more than 345 percent versus July levels and 407 percent on the year to a record of 953,000 tonnes, data from the National Bureau of Statistics showed on Tuesday.
Copper down as euro zone debt crisis weighs
SHANGHAI, Sept 14 (Reuters) - Copper prices lost their early upward momentum after the euro slipped as investors worried about the slow handling of Europe's sovereign debt problems, which many fear could trigger a new banking crisis.
"China's output data shows that copper users are still stocking up steadily and buying on dips," said Jinrui Futures analyst Zhao Kai.
METALS-Copper down as euro zone debt crisis weighs
SHANGHAI, Sept 14 (Reuters) - Copper prices lost their early upward momentum, after the euro slipped as investors worried about the slow handling of Europe's sovereign debt problems, which many fear could trigger a new banking crisis.
"China's output data shows that copper users are still stocking up steadily and buying on dips," said Jinrui Futures analyst Zhao Kai.
PRECIOUS-Gold steady on euro zone woes; dollar weighs
SINGAPORE, Sept 14 (Reuters) - Spot gold held steady, as investors flocked to bullion for safe haven from fears of crisis contagion in Europe while technical weakness and a strong dollar weighed on prices.
"Technically we are running into a challenging situation over the next 2-3 days, as the uptrend from the beginning of July faces a short-term correction," said Dominic Schnider, head of commodity research of UBS Wealth Management in Singapore.
Gold steady on euro zone woes; dollar weighs
SINGAPORE, Sept 14 (Reuters) - Spot gold held steady as investors flocked to bullion for safe haven from fears of crisis contagion in Europe while technical weakness and a strong dollar weighed on prices.
"Technically we are running into a challenging situation over the next 2-3 days, as the uptrend from the beginning of July faces a short-term correction," said Dominic Schnider, head of commodity research of UBS Wealth Management in Singapore.
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