Monday, October 24, 2011

20111024 1619 Global Market & Commodities Related News.

Asian stocks up on EU summit hopes
HONG KONG, Oct 24 (Reuters) - Asian stocks rose on Monday and the euro gave back some of the gains it made last week after euro zone leaders made some progress towards a strategy to tackle the region's debt crisis.
"It doesn't feel to me like we're going to see a big risk rally, but we could easily see this deal done, risk remains relatively well supported, especially if we start thinking of things like another Fed quantitative easing, that'll help keep market focused on a weaker U.S. dollar," said Greg Gibbs, strategist at RBS in Sydney.

Berlusconi Pressed by Europe Leaders on Budget Deficit, ECB’s Bini Smaghi (Bloomberg)
Italian Prime Minister Silvio Berlusconi was put on the defensive at a crisis summit over the nation’s finances and appointments at the European Central Bank. Before the leaders convened yesterday in Brussels, Berlusconi held face-to-face talks with European Union President Herman Van Rompuy and European Commission President Jose Barroso and then with German Chancellor Angela Merkel and French President Nicolas Sarkozy. “I never flunked” an exam in my life, Berlusconi told reporters when asked if he was concerned over the push to cut Italy’s debt load, the biggest in the world after the U.S. and Japan. The premier added that he is thinking about a reform of the pension system and that new measures will be discussed at a meeting today.

China Stocks Rise First Time in Week on Manufacturing Outlook; Banks Rally (Bloomberg)
China’s stocks rallied for the first time in five days after a report showed the nation’s manufacturing may expand for the first time in four months and on easing concerns over the European debt crisis. China Minsheng Banking Corp. and China Citic Bank Corp. led gains for lenders as Barclays Plc forecast “strong” third- quarter industry profit growth and European leaders outlined plans to aid banks. Jiangxi Copper Co. and coal producer China Shenhua Energy Co. climbed at least 3.3 percent after a preliminary index of purchasing managers signaled expansion. “The preliminary manufacturing data and positive progress in tackling the European debt crisis have eased concerns about a severe growth slowdown and recouped some confidence,” said Dai Ming, fund manager at Shanghai Kingsun Investment Management & Consulting Co.

FOREX-Euro resilient, pins hopes on EU deal
TOKYO, Oct 24 (Reuters) - The euro edged lower against the dollar on Monday on light profit-taking from macro players, but stayed supported as markets clung to hopes that European policymakers were moving a step closer to stemming the region's debt crisis.
The euro changed hands at $1.3864 , off Friday's high of $1.3902 after a weekend summit, as expected, produced no concrete plan for Europe. It was seen moving sideways above $1.3800 ahead of another meeting on Wednesday.

U.S. futures firm as harvests wrap up
SYDNEY, Oct 24 (Reuters) - U.S. grains and soybeans futures prices rose, supported by U.S. farmers holding back sales of freshly harvested crops in the hope of higher prices after recent weakness.
Commodities and financial markets were, however, cautious as they awaited the outcome of fresh talks about a plan to solve the European debt crisis.

Wheat Board can thrive in open market - Viterra CEO
WINNIPEG, Manitoba, Oct 21 (Reuters) - Canada's biggest grain handler, Viterra Inc , is willing to work with the Canadian Wheat Board in an open market system and thinks the board can thrive without its marketing monopoly, Chief Executive Mayo Schmidt said on Friday.
Ottawa intends to pass legislation by the end of 2011 to end the Wheat Board's 69-year-old grain monopoly as of August 2012, allowing Western Canada's farmers to sell wheat and barley for milling or export directly to grain handlers.
Algeria Jan-Sept wheat imports up 36 percent
ALGIERS, Oct 23 (Reuters) - Algeria's soft and durum wheat imports reached 5.72 million tonnes in the first nine months of 2011, customs data showed, a 35.9 percent increase on the same period last year.
Soft wheat imports rose to 4.43 million tonnes from 2.97 million tonnes in the January-September period of 2010, while durum wheat purchases were 1.28 million tonnes, up from 1.23 million tonnes.

Egypt's GASC says will include Ukraine wheat in tenders
CAIRO, Oct 22 (Reuters) - Egypt's main state wheat buyer, the General Authority for Supply Commodities (GASC), said it will include wheat of Ukrainian origin in its next wheat tender.
Nomani Nomani, the firm's vice chairman, said on Saturday that the decision was to "boost competition amongst Black Sea origin states." Egypt is the world's largest wheat importer.

Funds boost bullish bets in CBOT soybeans - CFTC
CHICAGO, Oct 21 (Reuters) - Large speculators increased their net long position in Chicago Board of Trade soybean futures and options last week for the first time in seven weeks, according to regulatory data released on Friday.
Meanwhile, noncommercial traders, a category which includes hedge funds, increased their net short holdings to a near record high in CBOT wheat and cut their net long position in corn for the seventh straight week, the weekly Commodity Futures Trading Commission's Commitment of Traders report released on Friday showed.

EU to be net sugar importer despite reform
BRUSSELS/LONDON, Oct 21 (Reuters) - A plan to abolish European Union sugar production limits would lead to a modest increase in output and softer EU beet sugar prices, but the bloc would still remain a net importer for three years or longer.
The latest reform plan announced on Oct. 12 would end the EU's system of national sugar production quotas and minimum beet prices from 2015, not in 2016 as had been suggested in earlier drafts of the reform plans.

Oil mixed ahead of EU meetings on debt woes
NEW YORK, Oct 21 (Reuters) - Oil futures were mixed in thin volume trade, with Brent pulling back late as investors exercised caution ahead of meetings starting Sunday where European leaders will try to hammer out a plan to address the region's debt crisis.
"The market has given as much benefit of the doubt as it can regarding the solution for the euro zone debt crisis. Some selling is to be expected ahead of the weekend and the uncertainty of a plan being concluded next week," said John Kilduff,
partner at hedge fund Again Capital LLC in New York.

Mexico's oil output, exports fall in Sept from Aug
MEXICO CITY, Oct 21 (Reuters) - Mexico's state oil company Pemex said on Friday oil production fell to 2.489 million barrels per day in September from 2.552 million bpd in August.
Exports also slipped to 1.242 million bpd from 1.440 million in August.

Europe steel output growth to slow in 2012 -Eurofer
LONDON, Oct 21 (Reuters) - Growth of Europe's steel production will slow in 2012 along with activity in the steel-using sectors, Eurofer, the European steel producers association, said on Friday.
Steel production in Europe will rise by almost 6 percent in 2011, and then growth will slow to 2.6 percent in 2012, Eurofer forecast.

Major steel output cuts in Europe
LONDON, Oct 21 (Reuters) - European steelmakers have announced several production cuts in the face of weaker demand, and more furnaces are likely to be idled in coming months.    
Some producers have announced restarts but curtailments are likely to dominate as consumers prefer to run down their stocks in an uncertain economic environment.

China Sept steel output at 2011 low -Worldsteel data
LONDON, Oct 21 (Reuters) - Annualised global steel output fell in September to its lowest this year in top producer China as a gloomier economic growth outlook made buyers cautious and weakened demand, according to a Reuters calculation based on World Steel Association data.  
Annualised global steel production however, rose in September as many steel mills boosted activity after the summer slowdown in the northern hemisphere.

China daily average aluminium output rises in Sept
LONDON, Oct 21 (Reuters) - Daily average primary aluminium output in China rose to 52,700 tonnes in September from 51,600 tonnes in August, provisional figures from the International Aluminium Institute (IAI) showed on Friday.  
Total primary aluminium production in China fell to 1.581 million tonnes in September from 1.599 million tonnes in August and 1.309 million tonnes in September last year.

Cautious on copper, China waits for prices to halve
SINGAPORE, Oct 21 (Reuters) - Copper will not recover any lustre soon after losing a quarter of its value since July, as China, the metal's top user and last hope in the face of crumbling Western demand, waits for prices to halve before it begins to rebuild stocks.
Supply worries stemming from a lengthy strike at the world's second-largest copper mine in Indonesia are being offset by bulging stocks and signs of slowdown in China, which saw its lowest growth in two years in the third quarter amid weakness in its two biggest markets, Europe and the United States.

China copper smelters slow output on shortage of raw material
HONG KONG, Oct 21 (Reuters) - China's copper smelters are slowing their rate of refined copper production as supplies of raw material concentrate and scrap fall, smelter sources said on Friday.
The slowing came after a fall of roughly 20 percent this month in the treatment and refining charges (TC/RCs) Chinese smelters receive for converting copper concentrate imports into refined metal and domestic scrap suppliers cut their sales on low copper prices.

Copper gains on hopes for Europe debt deal
SHANGHAI, Oct 24 (Reuters) - Copper prices rose as investors were hopeful that European leaders were moving closer to resolving the region's debt crisis.
"Some extra confidence in Europe is helping copper prices rise, while the euro is steady.  The news on Sarkozy backing down from his stance is good news, even if it is not a solution yet," said a Sydney-based trader.

Shanghai copper surges on bet of euro zone bailout solution
SHANGHAI, Oct 24 (Reuters) - Shanghai copper  and lead  surged more than 3 percent at the open on Monday, catching up with gains in London on Friday, as investors bet that European leaders over the next few days will move forward in resolving the euro zone's two-year-old debt crisis.
Three-month copper on the London Metal Exchange  rallied 6 percent on Friday in its largest one-day advance since early 2010, as opportunistic buyers stepped up purchases on the eve of a European Union debt-crisis summit.

METALS-Copper gains on EU debt deal hopes, China data
SHANGHAI, Oct 24 (Reuters) - Copper prices rose on Monday, gaining for a second straight session, as European leaders moved closer to resolving the region's debt crisis, while data from top consumer China also supported sentiment.
European Union leaders made some progress towards a strategy to fight the euro zone's sovereign debt crisis on Sunday, but the final decision was deferred until a second summit on Wednesday.

PRECIOUS-Gold steady, Europe debt deal eyed
SINGAPORE, Oct 24 (Reuters) - Spot gold prices held steady on Monday, after European leaders moved closer to a concrete plan to solve euro zone's debt crisis during a weekend meeting, lifting sentiment in commodities and equities.
Gold prices have followed moves in riskier assets in recent weeks, with its safe-haven appeal diminishing after wild price swings in the past two months.

Gold steady, Europe debt deal eyed
SINGAPORE, Oct 24 (Reuters) - Spot gold prices held steady , after European leaders moved closer to a concrete plan to solve euro zone's debt crisis during a weekend meeting, lifting sentiment in commodities and equities.
"There is cautious optimism over the euro zone debt issue and some hope that policymakers will be able to contain it," said Ong Yi Ling, an analyst at Phillip Futures in Singapore.

Managed money cuts gold long position
NEW YORK, Oct 21 (Reuters) - Money managers, including hedge funds and other large speculators, slashed their bullish bets in gold futures and options, as the price of bullion fell on a lack of safe-haven buying.
Conversely, the key speculator group became less bearish on copper. In the previous week, speculators held their largest net short position in the economically sensitive industrial metal since late June 2009, as macro pressures continued to dog sentiment.

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