Thursday, October 6, 2011

20111006 1622 Global Market & Commodities Related News.

Asian stocks up on Europe optimism, credit tightens
TOKYO, Oct 6 (Reuters) - Asian shares rose on Thursday, as optimism over Europe's efforts to aid the euro zone's financial sector and U.S. data suggesting the economy could avoid recession spurred short-covering and value-hunting.
"The U.S. data supported a view that despite the recent deterioration in sentiment, the financial turmoil so far has not had a serious material damage to the economy, at least in the United States," said Hiroki Shimazu, senior market economist at SMBC Nikko Securities.

FOREX - Euro steady, market holds breath before ECB
TOKYO, Oct 6 (Reuters) - The euro held steady against the dollar on Thursday as uncertainty gripped markets before an ECB meeting that could see rates cut or the rebirth of long-term lending to banks, while Europe's efforts to resolve its debt crisis and solid U.S. data provided tentative support for riskier assets.
The euro, last at $1.3331 , maintained most of its overnight gains made after Germany said it would help its own banks if necessary and opened the possibility of using a regional bailout fund to strengthen the euro zone banking system.

U.S. service sector growth slows, employment mixed
NEW YORK/WASHINGTON, Oct 5 (Reuters) - Growth in the U.S. service sector was steady in September and private hiring picked up, suggesting the economy was not yet slipping into recession.
Optimism over Wednesday's data, however, was soured somewhat by news that employers last month planned to lay off the most workers in more than two years. The bulk of the intended cutbacks, however, are in the U.S. military and at Bank of America  and are not directly related to recent weakness in the economy.

US corn steady after 3 pct rally, harvest caps gains
SINGAPORE, Oct 6 (Reuters) - U.S. corn futures steadied on Thursday, after their biggest rally in two months a day earlier, as investors scooped up the grain, optimistic that European leaders will succeed in averting a financial crisis that could trigger a global recession.
"Yesterday we saw a sharp rally in corn and wheat but there is still uncertainty in the market as one day of recovery doesn't change the situation much," said Ker Chung Yang, a commodities analyst at Phillip Futures in Singapore.

Argentina may sign deal soon to sell corn to China
BUENOS AIRES, Oct 5 (Reuters) - Argentina hopes to sign a deal with China in November that would clear the way for corn exports to the Asian country -- the world's No. 2 corn consumer, Agriculture Secretary Lorenzo Basso said on Wednesday.
China does not currently buy Argentine corn due to curbs on the genetically modified varieties that account for about 80 percent of the South American country's corn production.

Vietnam 2012 rice for export may reach 7.2 mln T-report
HANOI, Oct 6 (Reuters) - Vietnam, the world's second-largest rice exporter after Thailand, could have 7.2 million tonnes of the grain available for export next year after deducting domestic consumption, up from 7 million in 2011, a state-run newspaper said on Thursday.
Output in 2012 could drop to 41.52 million tonnes of unmilled rice from 41.57 million this year, but consumption could fall to 27.33 million tonnes from 27.52 million in 2011, the Nhan Dan daily cited Agriculture Ministry projections as showing.

Informa lowers US 2011 corn yield forecast
CHICAGO, Oct 5 (Reuters) - Analytical firm Informa Economics on Wednesday cut its estimate of the U.S. 2011 corn yield to 149.5 bushels per acre (bpa), from 151.0 previously, and projected U.S. corn production at 12.519 billion bushels, trade sources said.
Informa raised its U.S. 2011 soybean yield forecast. The firm also cut its corn and soybean production forecasts for Argentina, citing adverse crop weather associated with the La Nina phenomenon.

I.Coast intensifies fight against cocoa smuggling
ABIDJAN, Oct 5 (Reuters) - Top world cocoa grower Ivory Coast has ramped up border security and warned cocoa dealers they could be prosecuted if they are caught smuggling beans to neighbouring countries, farmers and a government source said on Wednesday.
The move comes after a 2010-11 cocoa season in which as much as 200,000 tonnes of the West African nation's crop was transported to Ghana, Liberia and elsewhere as dealers sought higher prices and other export outlets than Ivorian ports, which were shut off for months by a post-election civil war and cocoa export ban.

Russia to harvest 95 mln t grain this year-Putin
MOSCOW, Oct 5 (Reuters) - Russia will harvest 95 million tonnes of grain this year, Prime Minister Vladimir Putin said on Wednesday, giving a figure above the official forecast of 90 million tonnes.
"As of today, or Oct. 5, 90 million tonnes of grain have been harvested," Putin told a government meeting.
Brazil mid-crop ends above forecast but down on year
BRASILIA, Oct 5 (Reuters) - Brazil's May-September cocoa mid-crop has ended well above initial forecasts but lagged last year's output by nearly 2 percent, data from Bahia Commercial Association showed.
The mid-crop ended having produced 1,680,592 60-kg bags (100,836 tonnes) in both Bahia and outlying cocoa producing states. By comparison, the 2010 mid crop produced 1,711,358 (102,681 tonnes).

Duties to quash Ukrainian hopes of record exports
KIEV, Oct 5 (Reuters) - Ukrainian grain exports in the 2011/12 season may reach just half the previously expected record volume of 24-25 million tonnes if export duties on grains remain in place, Agriculture Minister Mykola Prysyazhnyuk told Reuters on Wednesday.
"We need to export 25 million tonnes but if export duties remain in place, we will export about 13 million tonnes, maybe a little bit more," he said.

Brent above $102; Libyan oilfield may be in ruins
SINGAPORE, Oct 6 (Reuters) - Brent crude held above $102 after surging in the previous session as pessimism about weaker demand was outweighed by a surprise drawdown of U.S. inventories and concerns that Libya's largest oilfield could be damaged.
"We went from about $76.00 to around $79.70 for WTI (this week) and prices holding on to those highs shows the market is pretty much doing alright," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.

Antofagasta sees Chinese restocking move soon
LONDON, Oct 5 (Reuters) - Chinese buyers are close to coming back into the market for copper re-stocking if prices stay at or below current levels, Antofagasta  Chief Executive Marcelo Awad said.
"I think we are getting close. They (Chinese buyers) are opportunistic and the copper price now is good ... if you compare with all the forecasting for the coming months, years," Awad said, adding he expected the price to rise in the short term as a result, up from current levels of around $6,900.

Supply woes will hold up copper price-First Quantum
LONDON, Oct 5 (Reuters) - Miner First Quantum Minerals  does not expect copper prices, down almost 27 percent since the start of September, to reach lows hit in 2008 as constrained supply and healthier mining companies underpin the price.
"I don't see that happening this time around. The world is very different, and the mining sector is in a very different place in terms of gearing and availability of cash ... it is in a much stronger (position)," First Quantum President Clive Newall said in an interview.

Copper rises for a second day on Europe steps
KUALA LUMPUR, Oct 6 (Reuters) - Copper on the London Metal Exchange rose for a second day as Europe's steps to help its financial sector and U.S. economic data point to an improved outlook for industrial metal demand.

Pan Pacific agrees unchanged 2012 copper premium -source
TOKYO, Oct 6 (Reuters) - Pan Pacific Copper , Japan's biggest copper smelter, has signed 2012 annual refined copper supply contracts with Chinese and Taiwanese buyers at a premium of $100 per tonne, unchanged from 2011, for a total of 110,000 tonnes, a company source told Reuters.  
"Real demand for copper in China remains solid," the source said, adding that the contract volume was bigger than the 100,000 tonnes deal signed by the company at this time last year.

METALS - Copper rises for a second day on Europe steps
KUALA LUMPUR, Oct 6 (Reuters) - London Metal Exchange copper rose for a second day on Thursday as Europe's steps to help its financial sector and U.S. economic data point to an improved outlook for industrial metal demand.
Three-month copper on the London Metal Exchange  climbed 1.3 percent to $6,910.25 a tonne by 0453 GMT after edging up $20 to end at $6,820 a tonne in the previous session. Futures are headed for a fifth week of declines.

PRECIOUS - Gold tracks equities higher ahead of ECB meet
SINGAPORE, Oct 6 (Reuters) - Gold ticked up in volatile trade on Thursday due to a steadier euro, gains in equities, purchases from jewellers, and hopes that Europe's moves to prop up its ailing banking sector could cushion the fall.  
Investors will turn their attention to a meeting of the European Central Bank policy meeting on Thursday, when President Jean-Claude Trichet is likely to prepare the ground for a pre-Christmas interest rate cut and offer banks further protection against the euro zone's worsening debt crisis.

Gold tracks equities higher ahead of ECB meet
SINGAPORE, Oct 6 (Reuters) - Gold ticked up in volatile trade on Thursday due to a steadier euro, gains in equities, purchases from jewellers, and hopes that Europe's moves to prop up its ailing banking sector could cushion the fall.  
"There's a little bit of (physical) buying. But if the market continues moving up, then of course the demand will be a bit less. The market is very choppy and thin," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

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