Tuesday, September 20, 2011

20110920 1034 Global Commodities Related News.

Commodities Fall on Europe Debt Worries (Source: Bloomberg)
Commodities fell the most in a month as gains in the dollar eroded demand for raw materials amid concern that Greece may fail to qualify for more financial aid needed to avoid default. Greece’s Finance Ministry said it had a “productive and substantive discussion” with international officials who will determine if the country qualifies for further bailout funds. The dollar rose as much as 1.2 percent against a basket of six major currencies, eroding the appeal of raw materials. “Today was more about dollar strength driven by the deteriorating global economy,” James Dailey, who manages $215 million at TEAM Financial Management LLC in Harrisburg, Pennsylvania, said in a telephone interview. “Traders were moving away from riskier assets.”

Corn (Source: CME)
US corn futures end mixed, rallying from sharp early losses on expectations of renewed export demand. Traders noted rumors that China was poised to re-enter the market as a buyer, of either U.S. or Argentina corn. That helped stanch the market's recent bleeding and kept the December contract above the 100-day moving average on a closing basis. Traders add that even with recent anecdotal reports of better-than-expected yields, supplies will remain tight. End-users' reluctance to buy, based on expectations the market could decline further, have weighed on the market recently. Prices also restrained by a stronger dollar, and worries about the economy. Dec corn ends up 1/4c to $6.92 1/4, 15c off the day's low.

Wheat (Source: CME)
U.S. wheat futures end lower, succumbing to outside market pressure and a lack of supportive fundamental news. Wheat and soybeans both under pressure all day, thanks to a stronger U.S. dollar and worries about the economy along with Europe's debt crisis. Meanwhile wheat demand is sluggish, which is also keeping prices under pressure. Worries about the U.S. spring wheat crop in the northern Plains, along with concerns about how farmers will plant a winter wheat crop in drought-parched soils, limited losses. CBOT Dec wheat ends down 15 1/4c, or 2.2%, to $6.73 a bushel. KCBT Dec wheat ends down 16c to $7.68 and MGEX wheat closes down 14 1/2c to $8.41 3/4.

Rice (Source: CME)
U.S. rice futures fall sharply on outside market pressure and a lack of demand. A stronger dollar, which is negative for U.S. exports, and worries about the broader economy weighed on grains markets generally. Traders are still assessing the current U.S. harvest. Meanwhile, demand remains sluggish and world supplies are seen as comfortable. CBOT Nov rice closes down 2.8%, or 50c, the daily trading limit, to $17.39 a bushel.

US Corn Yields Likely 149-150 Bushels/Acre - Executive (Source: CME)
U.S. corn yields may be revised upwards to 149-150 bushels/acre in the next few months due to a better-than-expected crop in many states, a senior industry executive said. The U.S. Department of Agriculture, in a monthly report last week, pegged the average corn yield at 148.1 bushels/acre, down from an earlier forecast of 153 bushels. In many areas, such as North Dakota, South Dakota, northern Iowa and Minnesota, the yields seem to be underestimated and could be revised higher, Frank Kralicek, member of the Asia Advisory Team of the U.S. Grains Council, said on the sidelines of an international agriculture conference here. "It (yields) can't get worse than this because most of crop that was in poor condition due to adverse weather has already been harvested," Kralicek said. Earlier this month, some private analysts had forecast U.S. corn yields as low as 143-147 bushels/acre.

US corn at 5-week low, wheat falls on risk aversion
SINGAPORE, Sept 19 (Reuters) - U.S. corn slid 0.7 percent to its lowest in 5 weeks, while wheat fell for a third straight session, as the euro zone debt crisis triggered a selloff in commodity markets including oil and metals.
"Grains have moved lower following a pretty significant move lower in the crude oil market and a sharp rally in the dollar index. Quite clearly the risk is coming off the table and grains are getting caught in that," said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia.

India to begin soybean imports from 2015
NUSA DUA, Sept 19 (Reuters) - Domestic demand for soybeans in India, fueled by a growing population and economic wealth in the world's fifth-largest producer, will result in the country becoming a net importer by 2015, the United Soybean Board said on Monday.
India is the world's fifth-biggest soybean producer after the United States, Brazil, Argentina and China, and it contributes about 5 percent to global output.

China soybean imports seen up 5 pct in 2012
NUSA DUA, Indonesia, Sept 19 (Reuters) - Chinese soybean imports will rise at least 5 percent next year, boosted by growing demand from pig and poultry farmers coupled with an emphasis on corn self-sufficiency, the American Soybean Association said on Monday.
China, the world's top soybean importer, is expected to buy about 57 million tonnes for the year ending August 31, 2012, versus 53-54 million tonnes the year before, Danny Murphy, treasurer at the American Soybean Association, told Reuters.

Egypt should export niche rice again-specialist
CAIRO, Sept 18 (Reuters) - Egypt, once a major player in the global rice market, should resume exports of the grain which can command premium prices abroad and import cheaper strains for its food subsidy programme, an Egyptian rice expert said
Egyptian rice, now sold for $250 a tonne as part of the government's subsidy programme, could fetch as much as $900 a tonne if exported, Mostafa El Naggari, who is also a member of the country's Agricultural Export Council, told Reuters.

North Australia faces more rain, balanced outlook in grain belt
SYDNEY, Sept 19 (Reuters) - Above-average rainfall is more likely in north Australia in the last quarter of 2011, but the chances of a drier or wetter October to December period are roughly equal across much of the  grain belts, the bureau of meteorology said on Monday.
The chances of receiving above average rainfall in the quarter are between 60 and 75 percent over the Northern Territories, the northern half of Queensland and western and northern parts of Western Australia, the bureau of meteorology said in its latest seasonal outlook.

Cold front may hit crops in China - weather office
SHANGHAI, Sep 17 (Reuters) - Grain producers in North China should take precaution against an oncoming strong cold front in the next three days that could bring frost and heavy rains to certain areas, China's National Meteorological Center (NMC) said in a statement on Saturday.
Temperatures are estimated to drop by four to eight degrees Celsius north of the Yangtze River, and more than 10 degrees in northern North China and southern Northeast China.
Concern grows over thirsty Argentine wheat -gov't  
BUENOS AIRES, Sept 16 (Reuters) - Crops in much of Argentina's No. 1 wheat-growing province are suffering from dry weather and the need for rain is becoming urgent in some districts, the Agriculture Ministry said on Friday.
Argentina, a leading wheat supplier to neighboring Brazil, has yet to forecast 2011/12 output, but the U.S. Department of Agriculture (USDA) sees production dipping to 13.5 million tonnes from 15 million last season.

Britain approves trial for GM wheat in 2012, 2013
LONDON, Sept 16 (Reuters) - Britain's farm ministry said on Friday it has granted approval for a research trial in 2012 and 2013 on genetically modified wheat which is resistant to aphids.
"The research is on wheat that has been genetically modified to resist aphids, which are a pest in wheat crops," the ministry said in a statement.

Competitive wheat to grab feed sales in Europe
Sept 16 (Reuters) - Wheat is on course to claim more of the animal-feed market in western Europe this season versus relatively expensive maize and barley, but this demand picture could be altered by the upcoming maize harvest, analysts and operators said.
Tight maize (corn) supply in the United States, the world's top producer and exporter, has been reinforced by a weather-related decline in production prospects for this year's U.S. crop, leading to the unusual situation in which corn prices have surpassed those of wheat on both sides of the Atlantic.

Ukraine harvests 1.04 mln T maize so far - AgMin
KIEV, Sept 16 (Reuters) - Ukraine, which plans to harvest a record 20 million tonnes of maize in 2011, threshed 1.04 million tonnes of the commodity as of September 16, the Agriculture Ministry said on Friday.
The ministry said farms harvested 206,000 hectares of maize and the yield averaged 5.07 tonne per hectare. At the same date in 2010 farms harvested 2.69 million tonnes of maize with the average yield of 3.9 tonne per hectare.
Bangladesh turns to India for wheat, shifts from Black Sea
DHAKA, Sept 16 (Reuters) - The bulk of India's 2 million tonnes of planned wheat exports are likely to end up in Bangladesh, traders said, as the country shifts away from Black sea supplies on competitive prices for grains from its neighbour.
Last week, India allowed unrestricted exports of two million tonnes each of wheat and common rice, as the unmanageable level of the country's stocks forced the authorities to allow overseas sales.

Sugar consolidates after slide, cocoa slips
LONDON, Sept 19 (Reuters) - ICE raw sugar futures consolidated and arabicas dipped in early trade, weighed by a firmer dollar as dealers focused on prospects for Indian sugar exports, while cocoa eased pressured by the coming West African main crop harvests.
Prospects for large northern hemisphere crops in the fourth quarter, notably in Russia, Ukraine and EU countries, also weighed on sugar futures prices.

Egypt's Alcotexa sells 392 T cotton in new season
CAIRO, Sept 19 (Reuters) - Egypt's Alexandria Cotton Exporters' Association (Alcotexa) committed to sell 392 tonnes of cotton in the new season 2011/2012 which started in September, an Alcotexa official told Reuters on Monday.
The sales comprised 342 tonnes of Giza 88 and 50 tonnes of Giza 86.Alcotexa did not announce the price for the new season yet, the officil said.

Colombia coffee farmers doubt 2011 output target
BOGOTA, Sept 16 (Reuters) - Some Colombian coffee growers and exporters doubt the main harvest in 2011 will be enough to meet the country's output target after torrential rains hurt plantations and led to fungus.
Colombia's coffee output fell for a fifth consecutive month in August and farmers reached by Reuters on Friday were not optimistic about the outlook for the rest of the year.

Brazil sugar vessel line-up shortest of 2011/12
SAO PAULO, Sept 16 (Reuters) - Brazil's current sugar line-up is the smallest of the April-March season, data from shipping agencies showed on Friday, reinforcing market expectations of a drop in exports in September,
September has been a month of record sugar shipments over the past few years, when Brazil's main center-south cane region produced record outputs. This season, however, both production and exports should fall following a steep drop in cane output.

Oil Climbs for First Day in Three in New York Trading; Brent Crude Gains (Source: Bloomberg)
Oil gained for the first day in three in New York. Crude for October delivery rose as much as 35 cents, or 0.4 percent, to $86.05 a barrel in electronic trading on the New York Mercantile Exchange. It earlier dropped as much as 0.7 percent and slid 2.6 percent yesterday to the lowest settlement in almost three weeks. The October contract will expire today. The more actively traded November future climbed 45 cents, or 0.5 percent, to $86.26 a barrel. Brent crude for November settlement climbed 74 cents, or 0.7 percent, to $109.88 a barrel on the London-based ICE Futures Europe Exchange.

Oil falls more than $1 on debt concerns, dollar
LONDON, Sept 19 (Reuters) - Brent crude oil slipped below $112 a barrel on Monday as Europe stumbled over attempts to solve the euro zone debt crisis, strengthening investor fears commodity demand growth may slow.
"Financial markets want a precise and clear plan on how to deal with the European debt crisis, but they are not getting it," said Christophe Barret, global head of oil research at French bank Credit Agricole.

Gulf oil output will fall as Libya recovers-OPEC's Badri
DUBAI, Sept 19 (Reuters) - Gulf OPEC producers that raised oil output to compensate for the shutdown of Libyan oilfields will certainly reduce production as Libya's output recovers, OPEC Secretary General Abdullah al-Badri said on Monday.
Saudi Arabia and its Gulf OPEC allies raised their oil production in June after failing to convince other members to agree an increase in production to make up for the shutdown of Libyan oil fields since February.

Malaysia's Petronas to sell Star Energy to IGas Energy
KUALA LUMPUR, Sept 19 (Reuters) - Malaysia's national oil company Petronas said on Monday it will sell the oil production business of its UK subsidiary Star Energy Group Limited to IGas Energy and focus on optimising the Humbly Grove Gas Storage facility.
This is part of its strategy to focus on growing its European asset returns through marketing and trading, Petronas said in a statement.

Euro Coal-Oct S.African trades at $111.50/T
LONDON, Sept 16 (Reuters) - Prompt physical coal prices dipped on Friday with South African October values coming under the strongest downward pressure.
Chinese importers are paying up to $134.00 a tonne CIF for standard grade prompt imports, up $131.00 from the start of the week, but relatively few deals into China have been done outside of the steady flow of Indonesian low-energy coal.

Ukraine plans to raise steel output in 2011, 2012
KIEV, Sept 16 (Reuters) - Ukraine plans to produce 34.5 million tonnes of crude steel in 2011 and expects to increase the output to 37.5 million in 2012, the government said in its forecast published on Friday.
Ukraine, amongst the ten largest steelmakers in the world, raised steel production to 33.3 million tonnes in 2010 after output fell to 29.8 million in 2009 due to the global economic slowdown.

Iron Ore-Shanghai rebar at 6-week lows, weak outlook
MANILA, Sept 19 (Reuters) - China rebar steel futures fell more than 2 percent to their lowest in nearly six weeks on Monday, weighed by a hazy outlook for demand in the world's largest consumer and thinning appetite for key raw material iron ore.
September and October are normally strong consumption periods for steel in China but Beijing's credit tightening campaign has hurt demand and the boost from the government's cheap housing project is waning, traders said.

Copper Tumbles Most in 10 Months on Mounting European-Debt Woes (Source: Bloomberg)
Copper futures tumbled the most in 10 months on speculation that Europe’s escalating debt woes will hinder the global economy, eroding demand for industrial metals. European manufacturing contracted in September for the second straight month, economists said before a report on a purchasing-managers index this week. Europe’s economy is cooling as governments extend spending cuts to narrow budget deficits. In China, home prices in all 70 cities monitored rose for the first time this year, the statistics bureau said yesterday. “China property-price news over the weekend possibly sparked fears of more Beijing tightening, or no loosening, as some may have been factoring in,” said David Thurtell, an analyst at Citigroup Inc. in Singapore. “Poor euro-zone manufacturing PMI’s would obviously be a bad look” for industrial metals, he said.

Japan's copper refining capacity to fully recover by end Sept-analyst
SHANGHAI, Sept 16 (Reuters) - Japan's copper refining capacity is expected to recover to its full capacity of 1.7 million tonnes by the end of September after being hit by an earthquake and tsunami in March, a senior industry analyst said on Friday.
Ryuji Ida of the Metal Economics Research Institute of Japan said the recovery was largely due to the Mitsubishi Materials Onahama Smelting and Refining company in the northeast returning to full capacity. The firm has a smelting capacity of 324,000 tonnes per year and a refining capacity of 300,000 tonnes per year.

Japan's JX says copper demand in China solid
TOKYO, Sept 15 (Reuters) - JX Nippon Mining and Metals Corp , the parent of Japan's top copper smelter, said appetite for copper in China remains solid, helping ally concerns that a global economic downturn could dampen demand in the country and drive down the price of the industrial metal.  
Masanori Okada, president of JX Nippon Mining, said in an interview with Reuters on Thursday that the group's 2012 export offers of refined copper at premiums of about $100, the same as in 2011, are being accepted by Chinese buyers.

METALS-Copper slides on global slowdown fears
SHANGHAI, Sept 19 (Reuters) - Copper prices fell as investors focused on a possible slowdown in the global economy, with major developed nations mired in sovereign debt issues while developing economies combat inflationary pressures.
"Copper is down today as investors are feeling insecure about future global demand given the bad news out there. The euro zone crisis is unsettling while there is still no news on whether the U.S. will be rolling out a QE3," said CIFCO Futures analyst Zhou Jie.

PRECIOUS-Gold rises on euro zone woes; eyes on Fed
SINGAPORE, Sept 19 (Reuters) - Spot gold gained 0.8 percent, extending a 1.2-percent rise in the previous session, as worries about a worsening debt crisis in the euro zone and the bloc's future drove investors to seek safety in bullion.
"Gold and the dollar will remain the outperformers as equities and base metals look weak today," said a Singapore-based trader.

Gold May Rally as Italy Credit-Rating Cut Boosts Demand for Haven Assets (Source: Bloomberg)
Gold may rally from its biggest drop in a week on concern that the European debt crisis is worsening, spurring demand for haven assets including bullion. Gold for immediate delivery gained as much as 0.3 percent to $1,784.43 an ounce, and traded little changed at $1,779.67 at 7:36 a.m. in Singapore. It shed 1.8 percent yesterday as concern about a potential Greek default drove up the dollar. December- delivery bullion in New York rose 0.2 percent to $1,781.50. Standard & Poor’s Ratings Services cut Italy’s credit rating by one level late yesterday on mounting government debt and weakening growth prospects, sending the euro and U.S. stock futures lower. The Dollar Index rose for a second day yesterday as investors sought to diversify away from declining equities and commodities.

Baltic Exchange slides as cargo activity fades
LONDON, Sept 16 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell for a second day on Friday as cargo activity dried up and freight futures contract selling added to the market's weaker tone.  
The overall index fell 4.88 percent or 93 points to 1,814 points. Earlier this week the index had risen to its highest level in nearly nine months.

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