Thursday, September 15, 2011

20110915 1616 Global Market & Commodities Related News.

European Stocks Gain on Backing for Greece (Bloomberg)
European stocks climbed for a third day as assurance from Germany and France that Greece will remain a member of the euro outweighed a $2 billion trading loss at UBS AG. (UBSN) Asian shares gained and U.S. futures fluctuated. Kingfisher Plc (KGF) gained 5.1 percent after Europe’s largest home-improvement retailer posted earnings that topped analyst estimates. UBS tumbled 5.6 percent after Switzerland’s biggest bank reported a trading loss of about $2 billion because of unauthorized deals at its investment bank. The benchmark Stoxx Europe 600 Index advanced 0.9 percent to 226.24 at 8:38 a.m. in London, extending yesterday’s 1.5 percent gain. The gauge has still fallen 22 percent from this year’s peak on Feb. 17 as European and U.S. economic reports trailed forecasts, adding to concern that the global economic recovery is at risk.

Asian Stocks Rise as Germany, France Say Greece’s Future is in Euro Area (Bloomberg)
Asian stocks climbed, with the regional benchmark index rebounding from its lowest level in more than a year, after French President Nicolas Sarkozy and German Chancellor Angela Merkel said Greece will stay in the euro zone. Westpac Banking Corp. (WBC) gained 2.6 percent in Sydney. Samsung Electronics Co., which receives 20 percent of its revenue from Europe, rose 2.4 percent in Seoul. S-Oil Corp. (010950), which refines and sells petroleum, surged 12 percent. Taiwan Semiconductor Manufacturing Co. advanced 2.8 percent on higher chip prices. Esprit Holdings Ltd. (330), the biggest Hong Kong-listed clothier, tumbled 9.7 percent after reporting profit plunged 98 percent.
“Germany and France’s commitment to continue supporting Greece’s European Union membership diminishes the likelihood that it will be allowed to default,” said Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “If Greece avoids default, it lessens any flow-on impact through the global banking system, which in turn is positive for Asian stocks.”

Asian stocks rebound on Europe debt hopes
HONG KONG/SINGAPORE, Sept 15 (Reuters) - Asian stocks bounced on Thursday after tentative steps by euro zone policymakers to tackle a crippling debt crisis, but investors remained wary that obstacles the bloc's leaders face could weigh on the euro and Asian currencies in the medium term.
"I'm a bit surprised by the move today. I was not expecting this and I don't expect it to stay here for the whole day," said Simon Burge, a portfolio manager at ATI Asset Management.

FOREX-Euro wobbles as relief over Greece fades
TOKYO/SYDNEY, Sept 15 (Reuters) - The euro slipped in Asia on Thursday, as initial relief over assurances from Germany and France about keeping Greece in the euro bloc wore off amid scepticism over whether euro zone policymakers can help Athens avoid default.
"It eased concern following the departure of key German officials from the ECB that the Germans' commitment to the euro may be weakening. That triggered a bit of short-covering," said Masafumi Yamamoto, chief FX strategist at Barclays Capital in Tokyo, referring to the resignations of Juergen Stark last week and Axel Weber earlier this year from the European Central Bank.

US corn near 4-week low on slowing demand; soy up
SINGAPORE, Sept 15 (Reuters) - Chicago corn fell around half a percent trading close to a four-week low as the market was pressured by prospects of weakening demand for U.S. supplies, while wheat edged lower on outlook for bigger global crops.
"At this stage the bad news that was being whispered has been priced in the market," said Abah Ofon, an analyst with Standard
Chartered Bank in Singapore.

Drought could hit Ukraine '12 grain crop  
KIEV, Sept 14 (Reuters) - Lack of moisture in soil across Ukraine could affect the yield of the next year's winter grain crops and reduce the harvest, a senior weather forecaster said on Wednesday as farms started the 2012 winter grain sowing.
"The situation is not critical but we have enough ground for concerns," Tetyana Adamenko, the head of the agricultural department of Ukraine's meteorological centre, told Reuters in an interview.

India's 2011 tea exports seen down 6.7 pct, output record
MUMBAI, Sept 14 (Reuters) - Tea exports by India, the world's second-biggest producer, could fall nearly 7 percent in 2011 to 180-185 million kilograms partly due to payments problems with Iran which also hurt oil trade, a senior industry official said.
"Unrest in the Middle East and payment problems with Iran affected exports. Now exports demand is improving, but total exports in 2011 will be lower," Deepak Atal, managing director of Amalgamated Plantations, told Reuters in an interview late on Tuesday.

China sees record 2011 grain harvest
BEIJING, Sept 15 (Reuters) - China is likely to reap another bumper grain harvest this year, with output rising 3 percent from a year ago to a record of more than 560 million tonnes, a senior government official said.
"The country's total grain output may hit a record again, the eighth year with a bumper harvest," Zhang Xiaoqiang, deputy head of the National Development and Reform Commission (NDRC), told reporters on Wednesday at the World Economic Forum in Dalian.

Indonesia govt says Sept palm export tax at 15 pct
JAKARTA, Sept 15 (Reuters) - Indonesia, the world's largest palm oil producer, will keep its crude palm oil export tax rate at 15 percent, Yamanah, a director of agricultural and forestry products at the trade ministry, said on Thursday.
Indonesia announced new palm oil export tax rules last month, which include setting the minimum for the CPO export tax at 7.5 percent versus 1.5 pct previously.

Argentina to approve 7.5 mln T of new corn exports -group
BUENOS AIRES, Sept 14 (Reuters) - Argentina's government will authorize 7.5 million tonnes of corn exports in 2011/2012 and up to 500,000 tonnes for 2010/11, an official at the Maizar corn industry group said on Wednesday.
Argentina is the world's No. 2 corn supplier after the United States. The government has an export quota system in place to ensure sufficient corn supplies for the domestic market as the country struggles with double-digit inflation.

Paraguay 2011/12 soy output seen at new record
ROSARIO, Argentina, Sept 14 (Reuters) - Paraguay's 2011/12 soy output should rise 7 percent to a record 9 million tonnes, a representative of the country's grain exporters chamber said Wednesday.
Paraguay is the world's No. 4 soybean exporter, though it ships far less of the oilseed than its giant neighbors Brazil and Argentina.

La Nina return spells bad news for coal, palm oil: Clyde Russell
-Clyde Russell is a Reuters market analyst. The views expressed are his own-
SINGAPORE, Sept 15 (Reuters) - The possible return of La Nina weather conditions spells bad news for Australian coal miners still recovering from once in a century floods that struck at the start of the year.
And higher-than-normal rainfall across Southeast Asia may hurt palm oil production as well, making for a potential third year of weather-related disruptions.

Ethanol industry to stay hungry for U.S. corn
KANSAS CITY, Mo., Sept 14 (Reuters) - The U.S. ethanol industry is keeping its foot on the gas pedal at production plants and if the trend continues it could defy a government forecast that the industry will have its first drop in corn use since the turn of the century.
The government forecast, which was issued on Monday, was based on expected weaker gasoline use and higher corn prices. Ethanol is blended with gasoline. In addition, some analysts said the expiration of an industry tax credit at the end of the year could also eat into profits.

The great European sweet crude crunch: Campbell
-Robert Campbell is a Reuters market analyst. The views expressed are his own-
NEW YORK, Sept 14 (Reuters) - Looking back at the impact of the Libyan civil war on the oil market the most remarkable fact is that the situation did not lead to an oil super-spike.
After all, a scramble for sweet crude in 2007 is widely seen as the trigger for the spiral in oil prices until they hit nearly $150 a barrel.

Oil slips on U.S. demand concerns, Europe debt woes
SINGAPORE, Sept 15 (Reuters) - Oil fell as rising fuel stocks and falling demand in top consumer the United States reinforced views that slowing economic growth and Europe's debt crisis will dent energy use, while a stronger dollar also kept prices under pressure.
"The concern is that what starts as a financial crisis will drive the cost of borrowing to levels where it is difficult for the corporate world to invest, depressing economic activity and putting pressure on oil," said Michael McCarthy, chief markets strategist at CMC markets in Sydney.

S.Korea's Aug LNG imports nearly flat yr/yr
SEOUL, Sept 15 (Reuters) - South Korea's imports of liquefied natural gas (LNG) were almost unchanged in August from a year earlier, customs data showed on Thursday.
South Korea, the world's second-largest LNG buyer after Japan, imported 2.02 million tonnes of LNG last month, compared to 2.04 million tonnes the year before, Korea Customs Service data showed.
 
Americas Petrogas finds oil in Argentina property
Sept 14 (Reuters) - Americas Petrogas  said it found oil in its asset in Argentina and intends to build test production facilities in the fourth quarter.
The company said the first test well on the Neuquen Basin in Argentina flowed at about 1,023 barrels of oil equivalent per day. Petrogas estimates an oil column thickness of about 197 feet from the zones tested, it said in a statement.

EU wants rare earth clarity from China -trade chief
WINDHOEK, Sept 14 (Reuters) - The European Union wants more clarity from Beijing on increased export quotas for rare earth minerals from dominant producer China in meetings next month and December, Europe's trade chief said.
EU Trade Commissioner Karel De Gucht told Reuters late on Tuesday that Brussels was insisting on higher quotas of the minerals that are needed in new technologies ranging
from electric cars to military surveillance.

LME copper up 1 pct on Europe debt hopes, mine strikes
SINGAPORE, Sept 15 (Reuters) - LME copper rose 1 percent on hopes for a resolution of the euro zone's debt crisis while sentiment was supported by strikes at two large copper mines, but the gloomy global economic outlook is likely to keep gains in check.
"Because these countries have a very subdued growth outlook, people are probably not too concerned by copper supply and strike action in places like South America and Indonesia, like they were two or three years ago," said Tom Price, global commodity analyst at UBS.

China copper demand to reach 8.5 mln T by 2015 - assn
SHANGHAI, Sept 15 (Reuters) - China's apparent consumption of refined copper will rise by nearly 40 percent to 8.5 million tonnes per year by 2015, an official from the China Non-Ferrous Metals Industry Association said on Thursday.
"Despite the prospect of a slowdown for major economies around the world, we believe real demand for copper in China will remain strong as the domestic economy continues to develop," Zhao Bo, director of the association's copper department, said on the sidelines of the Metal

METALS-LME copper up 1 pct on Europe debt hopes, mine strikes
SINGAPORE, Sept 15 (Reuters) - LME copper rose 1 percent on Thursday on hopes for a resolution of the euro zone's debt crisis while sentiment was supported by strikes at two large copper mines, but the gloomy global economic outlook is likely to keep gains in check.
"Because these countries have a very subdued growth outlook, people are probably not too concerned by copper supply and strike action in places like South America and Indonesia, like they were two or three years ago," said Tom Price, global commodity analyst at UBS.

PRECIOUS-Gold extends losses on eurozone debt hopes
SINGAPORE, Sept 15 (Reuters) - Gold slipped more than half a percent on Thursday after equities rose and the euro ticked up on optimism over tentative steps by European policy makers to resolve and limit the region's debt crisis.  
"We've seen in the last few days that gold has struggled to make any headway," said Darren Heathcote, head of Investec Australia in Sydney. "That is a sign of the market really waiting for something more substantial, either coming out of Europe or coming out of the United States."

Gold extends losses on eurozone debt hopes
SINGAPORE, Sept 15 (Reuters) - Gold slipped more than half a percent  after equities rose and the euro ticked up on optimism over tentative steps by European policy makers to resolve and limit the region's debt crisis.  
"We've seen in the last few days that gold has struggled to make any headway," said Darren Heathcote, head of Investec Australia in Sydney. "That is a sign of the market really waiting for something more substantial, either coming out of Europe or coming out of the United States."

Newmont to double Peru gold production by 2017
AREQUIPA, Peru, Sept 14 (Reuters) - Newmont Mining Corp's Peruvian subsidiary Yanacocha will produce 2.5 million ounces of gold per year by 2017, nearly doubling its current output once key projects are up and running, the company's regional vice president said on Wednesday.
Yanacocha, a joint venture between Newmont  and Peru's Buenaventura , is developing the $4.8 billion Minas Conga. It will be the largest investment in a Peruvian mine ever.

Gold Fields to produce 1 mln oz gold in S. America
AREQUIPA, Peru, Sept 14 (Reuters) - Gold Fields , the world's fourth-largest gold producer, aims to produce 1 million ounces of the precious metal per year in South America by 2015, the company's regional chief said on Wednesday.
Currently, just 10 percent of South African miner Gold Fields' output comes from South America, but it is moving ahead with key projects in the region.

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