Monday, November 21, 2011

20111121 1641 Global Market & Commodities Related News.

FOREX-Euro subdued but stable, Aussie slips
TOKYO Nov 21 (Reuters) - The euro held steady in Asia on Monday after a short-squeeze rally late last week as news of an election victory for Spain's centre-right opposition was greeted with cautious optimism.  
"Essentially the euro needs a stronger European economy so as to reduce fiscal deficits. For that to happen, the euro has to fall," said Minori Uchida, a senior analyst at Bank of Tokyo Mitsubishi UFJ.

Asia Stocks Fall on U.S. Budget Impasse, Weaker Economic Growth (Bloomberg)
Asian stocks fell for a fifth day, the longest streak in almost four months, amid concern economic growth in Asia is slowing and U.S. lawmakers may fail to reduce the nation’s budget deficit. Genting Singapore Plc (GENS) and Capitaland Ltd. (CAPL) fell more than 1.6 percent, leading declines in the Straits Times Index as Singapore’s trade ministry said economic growth may slow next year. Fanuc Corp., which makes industrial robots, lost 2.1 percent after Japanese exports fell for the first time in three months. Elpida Memory Inc. (6665), the world’s third-largest memory- chip maker, sank 7.3 percent after an industry report showed Japan’s chip-equipment orders fell 33 percent from a year ago.
The MSCI Asia Pacific Index retreated 1.1 percent to 112.94 at 3:46 p.m. in Tokyo. The gauge has lost more than 1 percent in three of the last five trading sessions. The Straits Times Index (FSSTI) declined 0.4 percent, poised for the lowest close in a month. Hong Kong’s Hang Seng Index sank 1.4 percent and Japan’s Nikkei 225 Stock Average slipped 0.3 percent. “There’s likely to be a continuing impasse and people will focus on the stability of the U.S. politically,” said Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “People will probably sit on the sideline and wait for clarity.”

Japan Exports Fall as China Sees World Slump (Bloomberg)
Japanese exports dropped more than forecast in October, Singapore said its growth may slow to 1 percent next year and China signaled the global economy faces an extended slide. The reports may raise pressure on policy makers in export- reliant Asia to implement further stimulus measures. A record of the Bank of Japan’s Oct. 27 meeting today showed one board member favored adding 10 trillion yen ($130 billion) in asset purchases, and Chinese Vice Premier Wang Qishan said his nation must adopt more “forward looking” and flexible monetary policy. “Things are going to get worse before they get better,” said Vishnu Varathan, a Mizuho Corporate Bank Ltd. economist in Singapore. “Export growth will slow across Asia and we may see financial shocks coming through. Asian policy makers are going to become stimulatory all over again.”

Asian shares fall, U.S. deficit deadlock weighs
TOKYO, Nov 21 (Reuters) - Asian shares fell as uncertainty remained over how euro zone leaders would respond to mounting funding difficulties for European banks, and an apparent failure by U.S. politicians to agree on deficit reduction hurt sentiment.
"It is a minor negative, there is a few questions to be asked -- do Moody's and Fitch for example move to downgrade the U.S.," said HSBC's head of global equity strategy Garry Evans.

Corn slips as U.S. debt plan, euro zone crisis weigh on market
KUALA LUMPUR, Nov 21 (Reuters) - U.S. corn and wheat slipped in early Asian trade as euro zone debt worries and a potential failure of a U.S. debt reduction plan offset optimism that the U.S. economy may rebound in the fourth quarter.
Wheat for December delivery fell 0.17 percent to $5.97-1/4 per bushel after tumbling 3.3 percent last week because of euro zone concerns and abundant global supplies.

Algeria close to breaking grain import record
ALGIERS, Nov 20 (Reuters) - Algeria is this year close to breaking its all-time record for wheat imports, customs data showed on Sunday, after the government, worried about unrest in the wake of the "Arab Spring" uprisings, embarked on a grain buying spree.
The data seen by Reuters showed total wheat imports were 6.35 million tonnes in the January-October period of this year, up 40.5 percent on the same period in 2010.
 
Argentine soy planting makes fast progress -Gov't
BUENOS AIRES, Nov 18 (Reuters) - Sowing of Argentina's 2011/12 soy advanced at a fast clip over the last week thanks to good soil moisture in the country's main farm areas, the government said in a report on Friday.
Farmers have planted 44 percent of the record 19 million hectares forecasted for soy this season, according to the government's weekly crop progress report. Planting advanced by 14 percentage points in the week through Thursday, outstripping last season's tempo by 2 percentage points.

Dryness fears ease as rain soaks Brazil coffee
BRASILIA, Nov 18 (Reuters) - Concerns about overly-dry weather in the early stages of the development of Brazil's coffee crop have eased after good showers this week that look set to continue, a forecaster and agronomist said.
Trees had begun shedding some delicate blossoms due to dryness in the last few weeks after a burst of flowering that will essentially fix the size of the harvest in the 2012 crop in the world's No. 1 coffee grower.

Colombia '11 coffee output to miss goal but value up
BOGOTA, Nov 18 (Reuters) - Colombia's coffee growers federation said on Friday that bean production would be 8 million 60-kg bags this year, worse than earlier predictions about the impact of heavy rains on output.
This is the third consecutive year that coffee production in the world's top producer of high-quality Arabica beans will fall below the federation's target as bad weather, fungus and a tree renovation program cut output.

Brazil sugar losing competitiveness-Kingsman
SAO PAULO, Nov 20 (Reuters) - Brazil is losing its competitive advantage as a sugar producer because of rising costs, creating opportunities for beet growers like Russia and reducing world sugar trade, a senior analyst said on Sunday.
Jonathan Kingsman, managing director of consultancy Kingsman SA, told Reuters that Brazil, the world's No. 1 sugar producer and exporter, now produced sugar at a cost of 18-22 cents a lb, up from around 4 cents a lb in the 1990s.

US gov't a tenuous beachhead for biofuel firms
SAN FRANCISCO, Nov 20 (Reuters) - The U.S. military has emerged as a key ally for fledgling producers of non-food-based biofuels, who find themselves threatened by looming budget cuts and growing political hostility to renewable energy funding.
A U.S. Navy plan to cut its fossil fuel use in half by 2020 is only part of the story.

Italy 2011 biodiesel output seen down 32 pct
MILAN, Nov 18 (Reuters) - Biodiesel output in Italy, a major producer in the European Union, is set to fall to 500,000 tonnes at best this year, a 32 percent drop from 2010, hit by soaring inflows of cheaper imports, a senior industry official said on Friday.
The Italian industry produced 211,234 tonnes of biodiesel in the first six months of this year and second-half output is expected to be broadly similar, Maria Rosaria Di Somma, director general of the industry body Assocostieri-Unione Produttori Biocarburanti, told Reuters.

Gasoil shortage a ray of hope for Europe refiners
LONDON, Nov 18 (Reuters) - Embattled European refiners are heading for a rare season of decent profits this winter, despite loss-making gasoline, thanks to a roaring gasoil market.
The refining margin for making gasoil, or crack, is near 3-year highs as Russian exports are crippled by domestic regulations, U.S. exports are hitting their limit and the Asian market is struggling to source its own supplies.
 
Brent above $107, Mideast tension heightens supply concerns
KUALA LUMPUR, Nov 21 (Reuters) - Brent crude futures edged above $107 a barrel on fears that tensions over Iran's nuclear programme, and clashes in Egypt and Syria, may disrupt Middle Eastern output as demand for fuel rises ahead of the Northern
Hemisphere winter.
"At this point, the geopolitics is more important to the market because it's happening at a time when fundamentals show it's a tight market amid the peak demand season," said Gordon Kwan, head of energy research at Mirae Asset Securities Ltd. in Hong Kong.

Japan Oct crude oil import volume up 1.1 pct
TOKYO, Nov 21 (Reuters) - Japan's crude oil imports rose 1.1 percent in October from the same month a year earlier, while liquefied natural gas imports climbed more than 10 percent for the sixth straight month as gas-fired power generation continued to surge following the March earthquake, Ministry of Finance data showed on Monday.
Japan, the world's biggest LNG buyer, imported 17.9 percent more LNG from a year earlier at 6.16 million tonnes last month, marking the highest year-on-year increase since August, when the country imported 18.2 percent more LNG at a record 7.55 million tonnes.

Saudi sees balanced oil market as OPEC meeting nears
RIYADH, Nov 20 (Reuters) - The global oil market looks balanced, Saudi oil minister Ali al-Naimi indicated on Sunday, while the secretary general of the Organization of the Petroleum Exporting Countries said some producers need to cut back as Libyan output rebounds.
Speaking at the same conference in the Saudi capital with less than a month to go before OPEC meets, the head of the International Energy Agency (IEA) reiterated the major consumer group's concern that stubbornly high oil prices and tight supplies could harm fragile global economic growth.


Most China rare earth prices down on weak demand
SHANGHAI, Nov 18 (Reuters) - Prices of most Chinese rare earth slipped from a week ago on weak demand.
"A lack of confidence in the government's efforts to consolidate the rare earth mining industry is also stirring doubts that demand can be stimulated," said research firm Shanghai Metal Markets in a recent note.

U.S. deficit deadlock, euro zone weigh on copper
SHANGHAI, Nov 21 (Reuters) - Copper fell, weighed down by technical factors and the apparent failure of U.S. politicians to agree on trimming the country's deficit, while Spain's election of an austerity-minded government failed to ally fears about the euro zone's health.
"Copper will go through a period of consolidation within a bear market, which means more downside risks ahead in the longer term.  The Moving Average Convergence-Divergence (MACD) technical chart for LME copper shows a bearish trend developing, which is not helped by the absence of positive news out of the euro zone and United States," said CIFCO Futures analyst Zhou Jie.

Halt in Indonesian tin exports hitting U.S. markets
NEW YORK, Nov 18 (Reuters) - The suspension of tin ingot export shipments from Indonesian smelters last month is already creating a supply crunch for U.S. consumers, lifting premiums for higher-quality metal, which is expected to become harder to find.
Nearly in its seventh week, the shipping ban from the world's largest exporter is expected to last until the end of the year, leaving many U.S. buyers with few other reliable supply lines and mounting concerns about next year's supply contracts, market participants said.

Taiwan's China Steel to ask for iron ore delivery delays
TAIPEI, Nov 18 (Reuters) - China Steel , Taiwan's top steelmaker, plans to ask miners BHP Billiton   and Rio Tinto   to delay iron ore and coking coal deliveries as a slower global economy prompts it to cut output, a senior company official said.
Sluggish demand has forced steelmakers across Asia to curb production, although China Steel may be among the first to have sought a delay in raw material shipments.

Japan Oct copper cable shipments rise 3 pct yr/yr
TOKYO, Nov 18 (Reuters) - Japanese copper wire and cable shipments rose 3 percent in October from a year earlier to an estimated 60,700 tonnes, an industry body said on Friday.
Japan's appetite for copper, often seen as a gauge of economic activity and already weak in the wake of the global financial crisis, took a fresh beating after the March earthquake prompted user industries to reduce domestic production.  

Australian govt wins key support for mine tax
CANBERRA, Nov 21 (Reuters) - Australia's minority government won support from two key independents for its controversial 30 percent tax on iron ore and coal mines on Monday, meaning the laws should have the numbers to pass through parliament.
Independents Tony Windsor and Rob Oakeshott said they would support the mining tax laws in a vote in return for government guarantees to protect the environment against coal seam gas exploration and safeguard rural water resources.

METALS-U.S. deficit deadlock, euro zone weigh on copper
SHANGHAI, Nov 21 (Reuters) - Copper fell on Monday, weighed down by technical factors and the apparent failure of U.S. politicians to agree on trimming the country's deficit, while Spain's election of an austerity-minded government failed to ally fears about the euro zone's health.
"Copper will go through a period of consolidation within a bear market, which means more downside risks ahead in the longer term.  The Moving Average Convergence-Divergence (MACD) technical chart for LME copper shows a bearish trend developing, which is not helped by the absence of positive news out of the euro zone and United States," said CIFCO Futures analyst Zhou Jie.

PRECIOUS-Gold steady; caution prevails after Spain election
SINGAPORE, Nov 21 (Reuters) - Gold traded steady on Monday after its biggest weekly loss since September, as investors remained cautious even after Spain's centre-right opposition won a landslide victory in the election and is expected to launch drastic austerity measures.
"We still have not seen the light at the end of the tunnel yet," said Ong Yi Ling, an analyst at Phillip Futures. "We will continue to have headlines from Europe to dominate the sentiment in the market."

Gold steady; caution prevails after Spain election
SINGAPORE, Nov 21 (Reuters) - Gold traded steady after its biggest weekly loss since September, as investors remained cautious even after Spain's centre-right opposition won a landslide victory in the election and is expected to launch drastic austerit measures.
"We still have not seen the light at the end of the tunnel yet," said Ong Yi Ling, an analyst at Phillip Futures.

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