Wednesday, November 16, 2011

20111116 1634 Global Market & Commodities Related News.

FOREX-Euro hits 1-month low, crisis threatens more EU members
TOKYO, Nov 16 (Reuters) - The euro slipped to a fresh one-month low against the dollar and the yen on Wednesday as the euro zone debt crisis threatened to engulf top-rated members such as France, as government bonds of core countries came under pressure.
The common currency fell as far as $1.3460 , its lowest level in more than a month, after the French bond yield spread over benchmark German bunds hit euro-era highs.

Asian shares fall on euro zone contagion fears
TOKYO, Nov 16 (Reuters) - Asian shares and the euro fell  as signs that rising borrowing costs were affecting AAA-rated France stirred fears that even core euro zone members may not escape contagion from the region's debt crisis.
"Markets are clearly expecting a circuit breaker to alleviate pressure on periphery bond yields," said David Scutt, a trader at Arab Bank Australia in Sydney. "If no announcement is forthcoming in the days ahead, one suspects that situation could unravel fairly quickly."

U.S. economy shows signs of momentum in 4th qtr
WASHINGTON, Nov 15 (Reuters) - The U.S. economy showed signs it maintained speed into the fourth quarter as retail sales increased in October and a gauge of manufacturing in New York state rose this month for the first time since May.
Other data on Tuesday showed muted price pressures at the wholesale level. That should provide the Federal Reserve scope to give more aid to the economy in the face of an increased threat to the recovery from Europe's debt crisis.

Soy drops from 1-wk top on euro zone fears, wheat down
SINGAPORE, Nov 16 (Reuters) - U.S. soybeans slid from a one-week top, while corn lost ground as fears of the euro zone crisis spreading to top-rated members such as France weighed on the agricultural markets.
"Soybeans have been reasonably well supported but they are down today and everything is a little bit weaker, which is not surprising, given the stronger dollar," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne.

Indonesia buys 250,000 tonnes Indian rice-sources
NEW DELHI/JAKARTA, Nov 16 (Reuters) - Indonesia has bought 250,000 tonnes of rice from Indian suppliers at $483 per tonne on a delivered basis, an Indian trade source with direct knowledge of one of the deals and a rice trader in Indonesia said on Tuesday.
The deals, from three suppliers, follow talks earlier in November between Indonesia's state procurement agency Bulog and India's food ministry where government-to-government arrangements were also discussed.

Philippines cuts 2011 farm growth forecast to 3-3.5 pct
MANILA, Nov 16 (Reuters) - Philippine farm output in 2011 is now seen rising between 3.0 and 3.5 percent from last year, Agriculture Secretary Proceso Alcala said on Wednesday, revising down his growth forecast from 4 percent to 5 percent, due to typhoon damage to crops.
The agriculture sector, which accounts for a fifth of the southeast Asian country's overall domestic output, posted annual growth of 4.28 percent in January to September, reversing a contraction of nearly 3.0 percent a year earlier.
 
Mexico coffee exports increase 71.5 percent in Oct
MEXICO CITY, Nov 15 (Reuters) - Mexico coffee exports jumped 71.5 percent last month amid high international prices, the producer group Amecafe said on Tuesday.
The country exported 177,792 60-kilo bags in October, the first month of the 2011/12 season, compared to 103,641 bags last October, the association said in a notice on Monday evening.

Wheat Board urges Canada lawmakers to keep monopoly
Nov 15 (Reuters) - Supporters of the Canadian Wheat Board took their protest to Parliament Hill in Ottawa on Tuesday, in a last-ditch effort to sway legislators to keep the world's last major agricultural monopoly.
Several Wheat Board directors, as well as a few Prairie grain farmers, urged the Conservative government to drop plans to end the CWB's marketing monopoly on Western Canadian wheat and barley destined for milling or export.

EU biodiesel plants fear closure as imports surge
HAMBURG, Nov 15 (Reuters) - A number of European biodiesel refiners are likely to go under, and the EU will be under pressure to erect barriers to imports in the coming year as low demand in Europe for the green fuel combines with stiff competition from abroad.
"Many biodiesel companies are already in a critical situation, and there is a risk that this will be transformed into companies closing in the next months," said Raffaello Garofalo, secretary general of the European biodiesel industry association EBB.

Brent slips below $112 on EU contagion worry, higher stocks
SINGAPORE, Nov 16 (Reuters) - Brent crude slipped below $112, reversing some of the previous session's gains on worries that new governments in Greece and Italy may fail to muster political clout to impose unpopular reforms and contain the region's debt crisis.
"It is true that concerns over Iran have been around for some time, but you cannot ignore the fact that Iran is a major supplier," said Le Brun.

Europe stainless steel industry faces big cuts-SMR
LONDON, Nov 15 (Reuters) - Europe's stainless steel industry will see major curtailment of production between this year and next as private equity and other new investors get involved, the managing director of steel consultancy SMR told Reuters.
The European stainless steel industry has been suffering due to overcapacity and stiffer competition from Asia in the past few years, but production cuts and shutdowns have been slow to come.

London copper up on arb trades, U.S. data
SHANGHAI, Nov 16 (Reuters) - London copper drifted up , boosted by arbitrage trading and positive economic data from the United States, but prices are expected to be reined in by lingering worries about the euro zone debt crisis.  
"There are fresh short positions in Shanghai copper today, with sentiment dragged down by the performance of the euro and equities. Chinese investors feel that Shanghai copper is at the right technical point for selling and are bearish about prices going forward," the trader added.

Indonesia tin smelters must plug export leaks-analysts
JAKARTA, Nov 15 (Reuters) - Indonesia's monthly tin exports increased in October to meet contractual sales agreed before smelters imposed a shipment ban,   but analysts say production shutdowns and stricter enforcement to plug the leaks will be needed to achieve higher prices.
Data last week surprised tin investors, showing Indonesia's refined tin exports rose 4 percent last month to 5,441.58 tonnes, versus September's 5,233.06 tonnes, though shipments fell 38 percent versus a year ago.

Gold tracks euro down on contagion fear
SINGAPORE, Nov 16 (Reuters) - Gold prices fell more than half a percent, tracking a lower euro on fears the euro zone debt crisis could spread to France, the bloc's second-largest economy, while Greece and Italy struggle to save their economies.
"The dollar strength has weakened local currencies, which has tempered buying interest," said a physical dealer in Singapore.

METALS-London copper up on arb trades, U.S. data
SHANGHAI, Nov 16 (Reuters) - London copper drifted up on Wednesday, boosted by arbitrage trading and positive economic data from the United States, but prices are expected to be reined in by lingering worries about the euro zone debt crisis.  
Three-month copper on the London Metal Exchange  edged up 0.2 percent to $7,698.50 a tonne by 0357 GMT, after rising 1 percent previously.

PRECIOUS-Gold tracks euro down on contagion fear
SINGAPORE, Nov 16 (Reuters) - Gold prices fell more than half a percent on Wednesday, tracking a lower euro on fears the euro zone debt crisis could spread to France, the bloc's second-largest economy, while Greece and Italy struggle to save their economies.
Gold is a popular buy in times of economic and political turmoil because of its safe haven allure, although bullion has moved in close correlation with riskier assets, as harried investors at times liquidate gold positions to cover losses elsewhere.

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