Friday, November 18, 2011

20111118 0959 Global Commodities Related News.

Corn (Source : CME)
US corn futures tumble on weak demand and a wave of technical selling. The market, initially pressured by poor exports and macro pressure due to Europe's crisis, saw losses accelerate as prices fell below technical-support levels. Prices hit a 5-week low as weak export demand was highlighted by a disappointing weekly report and as traders were also concerned by Japan's purchase this week of cheaper Ukrainian corn. Commodities were pressured broadly by Europe's debt crisis, which has generated worries of contagion and broad economic woes. December corn ends down 4.4% at $6.14 1/2 per bushel.

Wheat (Source : CME)
US wheat futures sank to four-month lows at CBOT, driven by poor demand and spillover pressure from falling corn values. Corn and wheat are both feed grain, and wheat must stay competitive with corn to build domestic demand, says Shawn McCambridge, senior grains analyst with Jefferies Bache. Broader-based commodity selling coupled with US wheat being priced out of the world market by cheaper supplies from Australia and the Black Sea region force traders to lower wheat values. CBOT Dec wheat ended down 24 1/4c at $5.92 1/2 per bushel; December KCBT wheat ended 20 1/2c lower at $6.66 1/2; Dec MGEX wheat dropped 8 1/2c to $9.25.

Rice (Source : CME)
US rice futures fall sharply amid widespread commodity selling. Rice had already been tumbling, thanks to poor export demand and technical selling, and the Jan contract is down 15% since Oct 25. Worries about Europe's debt crisis weighed on commodities generally, adding to rice's slump. CBOT Jan rice ends down 24c, or 1.6%, to $14.71 1/2.

Tight supplies take centre stage in grain markets
GENEVA, Nov 16 (Reuters) - Tight supplies remain a central concern for grain and oilseed markets as demand expands, leaving markets vulnerable to any supply shocks, Bruce Tozer of Credit Agricole Corporate and Investment Bank said in an interview on Wednesday.
"I think the market is generally nervous about tightness. Demand now is growing at such a rate there is very  little slippage on the supply side," he told Reuters on the sidelines of the Global Grain 2011 conference.

French analyst sees EU 2012 soft wheat crop up 5 pct
GENEVA, Nov 16 (Reuters) - The European Union's soft wheat harvest is expected to rise nearly five percent in 2012 to 135.8 million tonnes, against 129.5 million this year, French analyst Strategie Grains said on Wednesday in its first estimate for next year's crop.
The increase was mainly due to a jump in the EU's average yield to 5.8 tonnes per hectare, up from 5.6 tonnes this year, Strategie Grains' head analyst Andree Defois told Reuters on the sidelines of the Global Grain conference in Geneva.

Corn, wheat drop for 2nd day on poor demand, EU worries
SINGAPORE, Nov 17 (Reuters) - Chicago wheat and corn slid for a second straight session, weighed down by slowing demand for U.S. grains and concerns over Europe's debt crisis spinning out of control.
"It was expected that a one-day rally would not be sustained because there are no demand fundamentals supporting corn and wheat," said Lynette Tan, an analyst with Phillip Futures in Singapore, referring to a rally on Tuesday.

Indonesia secures Vietnam rice, suspends imports
JAKARTA, Nov 17 (Reuters) - Indonesia has suspended all rice imports for the year after securing a deal for 300,000 tonnes of the grain from Vietnam, which replaces a government-to-government pact reportedly cancelled by Thailand, an official said on Thursday.
With this deal, and purchases from India and Thailand, state procurement agency Bulog has filled its 1.6 million-tonne quota for 2011, said Bulog CEO Sutarto Alimoeso.

Philippines may buy more 2012 rice, starting Dec
MANILA, Nov 17 (Reuters) - The Philippines, among the world's biggest rice buyers, plans to buy more of the grain in 2012 than earlier forecast after typhoons damaged crops, and may start its purchases as early as next month, the Agriculture secretary said on Thursday.
Manila may buy 500,000 to 800,000 tonnes of rice for next year's needs, most likely from Vietnam, as the Southeast Asian country seeks to boost supply after strong typhoons damaged crops in late September to early October, Proceso Alcala said.

UK wheat output seen rising 3 pct in 2011/12
LONDON, Nov 16 (Reuters) - The U.K.'s 2011 wheat harvest is estimated at 15.4 million tonnes, in line with October's provisional estimates and up 3 percent on the year, the farm ministry reported on Wednesday.
Stocks at the start of the 2011/12 season were seen at 1.54 million tonnes, down 490,000 tonnes from a year earlier.

Rains slow final US harvest, cold snap arriving
CHICAGO, Nov 16 (Reuters) - Showers early this week slowed the final corn harvest, especially in Ohio, and a widespread cold snap is on tap after mid-week, an agricultural meteorologist said on Wednesday.
"Harvest is mostly complete. Still some corn to harvest in Ohio and they were slowed by rains early this week," said Andy Karst, meteorologist for World Weather Inc.

Ukraine raises grain harvest f'cast to 55 mln T
KIEV, Nov 16 (Reuters) - Ukraine will harvest about 55 million tonnes of grain this year, up from 39.2 million tonnes in 2010, Serhiy Kvasha, the head of markets department at the Agriculture Ministry, told a conference on Wednesday.
Previously, the government saw the harvest at 53-54 million tonnes.

AgResource sees 2012 wheat crop flat, corn up
GENEVA, Nov 16 (Reuters) - Global wheat output should stay nearly flat in 2012 while the world's corn harvest will rise 1.5 percent, due notably to a 14 percent jump in U.S. corn production, analyst AgResource said on Wednesday.  
In its first estimates for world wheat supply and balance in 2012/2013 given at the Global Grain conference in Geneva, the U.S analyst put the world's wheat output at 682.6 million tonnes against 683.3 million this year.

ICE sugar eases, eyes on debt crisis contagion
LONDON, Nov 17 (Reuters) - ICE sugar futures eased in early trading, as concerns over the extent to which the euro zone debt crisis could damage U.S. banks weighed on global markets.
Raw sugar futures edged lower, with the recent dip in prices expected to stimulate further physical offtake following Malaysia's purchase and Egypt's tende.

Colombian farmers fret over 2012 coffee harvest
SAN ISIDRO, Colombia, Nov 16 (Reuters) - Jose Ramon Collazos, a rotund 56-year-old Colombian coffee grower, is tired of the rains inundating his farm in the hills of Huila, the Andean country's second largest bean producing province.
Collazos has watched his harvest fall up to 40 percent in the last three years due to downpours triggered by the La Nina weather phenomenon and damage from a fungus -- two of the key reasons why Colombia has missed its coffee output targets for three years running.

Brazil cocoa arrivals nudge up as harvest kicks in
BRASILIA, Nov 16 (Reuters) - Cocoa deliveries to warehouses in Brazil's main producing states rose slightly in the last week as the main crop harvest gathered pace, data from Bahia Commercial Association showed.
Cocoa arrivals in the No. 1 cocoa producing state Bahia totaled 52,138 60-kg bags, up from 48,582 bags in the prior week. Deliveries from other producing states, whose production is staggered with that of Bahia, began to rise as harvesting got under way.

Colombia bets on genetics to up coffee output-group  
BOGOTA, Nov 16 (Reuters) - Colombia is betting on genetic research to adapt coffee crops to climate change and has invented eight varietals resistant to roya to boost production, the head of Colombia's National Coffee Research Center said.
Colombia, the world's top producer of high-quality Arabica beans, is increasingly relying on genetics to recover coffee output to historical levels of 11 million bags after three years of lower-than-expected production, experts said.

India delays sugar meet likely until Nov 21-sources
NEW DELHI, Nov 16 (Reuters) - India has put off a meeting of a panel of ministers to decide on allowing more sugar exports, possibly to Nov. 21, two government sources said on Wednesday.
Industry and analysts now say India could decide to allow up to one million tonnes of exports in a first tranche but hold off further quantities until early 2012 due to output delays.

Indonesia eyes top two coffee producer spot -assoc
JAKARTA, Nov 16 (Reuters) - Indonesia, now struggling with slumping coffee output due to hot and wet weather, has set an ambitious goal to be the world's No.2 producer within five years, an executive at an industry association said on Wednesday.
Indonesia is the world's fourth-largest coffee producer after Brazil, Colombia and Vietnam, and the world's second-biggest robusta coffee producer after Vietnam.

Oil Heads for First Weekly Drop Since September on European Debt Concern (Source: Bloomberg)
Oil headed for the first weekly decline since September in New York as signs Europe’s debt crisis is spreading countered speculation economic recovery in the U.S. will boost demand in the biggest crude consumer. Futures slipped as much as 0.8 percent, heading for the first weekly drop in seven weeks. Prices fell below $100 a barrel yesterday as European bond yields rose, signaling leaders are struggling to stem the crisis that threatens economic growth and demand for commodities. Claims for U.S. unemployment benefits decreased to the lowest level in seven months, the Labor Department said. “Oil benchmarks plunged on fears of contagion from Europe’s debt crisis,” Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd. in Melbourne, said in a note today. “Bearish sentiment in Europe outweighed solid U.S. data.”

Copper Traders Most Bearish in Two Months on European Crisis: Commodities (Source: Bloomberg)
Copper traders and analysts are the most bearish in almost two months because of mounting concern that Europe’s debt crisis will curb demand in the region that accounts for about 19 percent of global consumption. Eleven of 23 surveyed by Bloomberg expect the metal to decline, the second consecutive week that their outlook worsened and the highest proportion since Sept. 23. The last time so many were bearish, prices dropped 4.6 percent the following week. The commodity fell more than 20 percent into a bear market since reaching a record in February on signs that economic growth is slowing. European industrial production fell the most in 2 1/2 years in September as governments grappled with sovereign debt crises that have toppled governments in Greece and Italy. Copper demand contracted 0.9 percent in 2008 as economies contended with the worst recession since World War II.

Gold Falls Most in Seven Weeks as Equities, Commodities Slump on Euro Debt (Source: Bloomberg)
Gold fell the most in more than seven weeks as commodities and equities slumped after Fitch Rating said U.S. banks face a “serious risk” from Europe’s debt woes. Silver, palladium and platinum also tumbled. The MSCI World Index of equities dropped for a fourth day, and the Standard & Poor’s GSCI index of 24 raw materials fell the most in eight weeks. Fitch said yesterday that “the broad credit outlook for the U.S. banking industry could worsen,” unless Europe’s woes are resolved soon. Gold has risen 21 percent this year on demand for a store of value. “Apparent liquidation from fear of possible contagion from the European crisis has commodities, including gold, under continued pressure,” Miguel Perez-Santalla, a sales vice president at Heraeus Precious Metals Management in New York, said in telephone interview. “This is a big collapse.”

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