Wednesday, December 7, 2011

20111207 1630 Global Market & Commodities Related News.

Stocks, euro gain before summit, ECB decision
TOKYO, Dec 7 (Reuters) - Asian shares and the euro gained on hopes that the threat of mass credit rating downgrades will pressure European leaders to come up with a convincing framework for resolving the euro zone debt crisis at a crucial summit later this week.
"People are more optimistic that the news out of the Dec. 9 meeting would be more upbeat, so it's a bit of a reaction to that," said Guy Stear, head of research with Societe Generale in Hong Kong, adding that the markets were in a technical bounce from yesterday's moves.

Euro inches higher; much rides on EU events
SINGAPORE, Dec 7 (Reuters) - The euro clawed higher on Wednesday and stayed above a one-week low hit the previous day, with markets cautiously optimistic that European leaders will take decisive action to contain the region's debt crisis at a summit later this week.
The euro rose 0.3 percent to $1.3435 , hovering above Tuesday's low near $1.3334. There was talk of light stop-loss bids in the euro at $1.3470 and also near $1.3500.

European Stocks Advance on Summit Optimism (Bloomberg)
European stocks rose on speculation that euro-area leaders will agree on a bigger bailout package for indebted nations and stricter rules for budget control at a summit this week. U.S. index futures and Asian shares also climbed. Banks led gains with Deutsche Bank AG (DBK) and BNP Paribas (BNP) SA increasing at least 2.5 percent. Verbund AG (VER), Austria’s biggest utility, added 2.3 percent after Morgan Stanley raised its recommendation on the stock. The benchmark Stoxx Europe 600 Index advanced 0.9 percent to 244.16 at 8:02 a.m. in London. The index slipped 0.3 percent yesterday after Standard & Poor’s put 15 euro-area nations on credit-rating review. The December contract the S&P 500 Index added 0.8 percent, while the MSCI Asia Pacific Index increased 1.4 percent.

Palm investors could be burnt by fretting over La Nina
NUSA DUA, Indonesia Dec 6 (Reuters) - Malaysian palm oil prices have risen too far too fast and a dramatic fall awaits as traders focus on expectations of stellar output after the first quarter of 2012, while milder than expected La Nina weather promises fewer disruptions than usual.    
Malaysian palm futures  jumped almost 20 percent over the two months to early November as markets quickly priced in a weather premium over fears that yields could be hurt by the arrival of a La Nina as Southeast Asian producers enter the monsoon season in the fourth quarter.

USDA to trim corn stocks, boost soy supplies
CHICAGO, Dec 6 (Reuters) - The U.S. Agriculture Department is expected to lower its forecast of U.S. corn stocks slightly due to rising feed use and a lackluster harvest while raising soy supplies by nearly 10 percent because of poor export demand, according to analysts surveyed by Reuters.
Corn stocks are expected to again come in at a 16-year low when the government releases its monthly crop production report Friday morning. The drawdown will likely be limited by light demand from overseas buyers as they look elsewhere to fill their supply needs.

US grains inch up on Europe hopes, bargain hunting
SINGAPORE, Dec 7 (Reuters) - U.S. grains were mostly higher after recent declines in prices spurred bargain hunting, although trading was cautious ahead of a EU summit later this week, when European leaders could take bold measures to end a crippling debt crisis.  
"The market continues to be influenced by the macro economic concerns out of Europe. The corn market has also been heavy over the past couple of weeks as a result of increased supplies," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia.

Canada bets on India's middle class to boost canola oil exports
BANGALORE, Dec 6 (Reuters) - Canada's canola oil exports to India are expected to double in the next 4-5 years as the country's burgeoning middle class opts for healthier edible oil options, said an executive of the Canola Council of Canada.
"A big piece of India that has changed in the last few years has been the growing middle class that has both the means and health awareness to purchase a product like canola oil," Cory McArthur, vice president of market development for the Canola Council of Canada, told Reuters.

Canada canola, wheat crops bigger than expected
Dec 6 (Reuters) - Hot summer weather helped Canadian farmers reap a record canola harvest and higher-than-forecast production of wheat in 2011, according to a Statistics Canada survey released on Tuesday.
After spring flooding hampered planting in parts of Saskatchewan and Manitoba, hot, dry weather helped slow-developing crops recover in the top exporting country of spring wheat, durum, canola and oats.

US corn product exports to EU at stop- Oil World
HAMBURG, Dec 6 (Reuters) - Exports of U.S. corn products to the European Union have been virtually stopped because of concern they might contain unapproved genetically modified organisms (GMOs), Hamburg-based oilseeds analysts Oil World said on Tuesday.
Europe's biotechnology industry warned in October that agricultural imports are increasingly put at risk by the slowness of the bloc's approval system for new strains of GMO crops.

China's soy imports may rise near term- Oil World
HAMBURG, Dec 6 (Reuters) - China may raise soybean purchases in coming weeks as Chinese inventories remain low, Hamburg-based oilseeds analysts Oil World said on Tuesday.
U.S. soybean prices firmed last week following trade talk of new Chinese purchases.

Minor harm to US Plains wheat from cold snap
CHICAGO, Dec 6 (Reuters) - A cold snap overnight in the U.S. Plains hard red winter wheat region caused minor, if any, harm to some of the crop, an agricultural meteorologist said Tuesday.
"There was only light snowcover in northeastern Colorado, western Nebraska and northwestern Kansas, so there might have been some winterkill there but probably not much," said Don Keeney, meteorologist for MDA EarthSat Weather.

Naimi says Saudi pumps 10 mln bpd oil in Nov -report
SINGAPORE, Dec 7 (Reuters) - Top oil exporter Saudi Arabia produced 10 million barrels per day of oil in November, Bloomberg reported, citing Oil Minister Ali al-Naimi.
It was unclear if the figure included both crude oil and condensate or just crude. Naimi, in a speech read out by his adviser Ibrahim Muhanna on Sunday, said the country is producing more than 10 million barrels per day of crude oil and gas condensates.

Brent steady above $110; eyes EU summit, China econ data
SINGAPORE, Dec 7 (Reuters) - Brent crude was steady above $110, as investors turned cautious ahead of a European summit to deal with the region's debt crisis and the release of key Chinese economic data later this week.
"The market is likely to stay cautious before the ECB rate decision and the EU summit on Friday. Investors have priced in a positive outcome at the summit, so we might see a sell-off if the meeting disappoints," said Natalie Robertson, a commodities analyst with ANZ Bank in Melbourne.

Australia's Port Hedland iron ore shipments near-flat in November
SYDNEY, Dec 7 (Reuters) - Iron ore shipments from Australia's Port Hedland, one of the world's largest export terminals, eased to 19.8 million tonnes in November from 19.9 million in October, data released by the port authority showed on Monday.  Shipments to China, the port's biggest destination were steady at 14.7 million tonnes in November, according to the data.      

Ukraine's Metinvest plans to boost steel output
KIEV, Dec 6 (Reuters) - Ukraine's biggest steel producer Metinvest  plans to invest about $1 billion in its Yenakiyeve Iron and Steel Works to boost the plant's annual output to 4.5 million tonnes from the current level of 2.7 million, it said on Tuesday.
Metinvest also said it had opened a new blast furnace at Yenakiyeve in eastern Ukraine, which would increase pig iron production to 3.0 million tonnes per year from 1.8 million.

China Steel, Vale agree 23 pct iron ore price cut-source
TAIPEI/SINGAPORE, Dec 6 (Reuters) - China Steel , Taiwan's top steelmaker, has agreed a 23 percent cut in iron ore prices for October-December with Brazilian miner Vale , as mills seek better contract terms after ore prices slumped and steel demand thinned.
A 31 percent plunge in spot iron ore prices in October prompted China Steel and steel producers in mainland China, the world's top iron ore buyer, to scour for adjustments in pricing the steelmaking ingredient to more closely reflect spot rates.

India's Goa port iron ore exports recover on Chinese demand
MUMBAI, Dec 6 (Reuters) - November shipments from India's largest iron ore exporting port, Mormugao in Goa state, recovered from last month but still down 6 percent at 3.19 million tonnes on year, as firmer prices made  shipments feasible from the western state with lower freight.
"Feasibility is there from Goa port... there is good demand for low grade in China and Orissa ores are unavailable," said Dhruv Goel, managing director, with SteelMint, an iron ore trader in eastern Orissa state.

Indonesia to export 7,500 T tin ingots this wk - source
JAKARTA, Dec 6 (Reuters) - Indonesia's tin smelters plan to export a total of 7,500 tonnes of tin ingots this week, an industry source told Reuters on Tuesday, showing an industry export ban that was meant to last until the end of this month has been broken.
Members of Indonesia's tin association (ITA) shipped 7,000 tonnes of tin ingot overseas last week after PT Koba Tin shipped 400 tonnes of tin ingots on Dec 26, to break a self-imposed industry ban aimed at propping up tin prices.

LME copper ticks up, lean volumes ahead of EU summit
SINGAPORE, Dec 7 (Reuters) - London copper futures edged higher, spurred by hopes that more aggressive measures to end the euro zone debt crisis will be reached at this week's EU summit, but thin volumes suggest the optimism is not widespread.
"There is a lot riding on the outcome of this week's upcoming EU meeting," INTL FCStone analyst Edward Meir said in a note.

LME copper ticks up, lean volumes ahead of EU summit
SINGAPORE, Dec 7 (Reuters) - London copper futures edged higher on Wednesday, spurred by hopes that more aggressive measures to end the euro zone debt crisis will be reached at this week's EU summit, but thin volumes suggest the optimism is not widespread.
The euro zone debt crisis has been the biggest pain for copper and other commodities this year because it clouded the outlook for global demand. So investors have huge expectations about Friday's summit which may be Europe's last chance to resolve a crippling two-year-old sovereign debt crisis.

Gold steady as Europe looks for debt crisis cure
SINGAPORE, Dec 7 (Reuters) - Gold traded steady on Wednesday with many investors moving to the sidelines ahead of a key European Union summit this week where policymakers are expected to find a way to end the region's two-year-old debt crisis.
Investors were also cautious after ratings agency Standard & Poor's fired a second warning shot at the euro zone in 24 hours, threatening to cut the credit rating of its financial rescue fund.

Gold flat as Europe looks for debt crisis cure
SINGAPORE, Dec 7 (Reuters) - Gold traded little changed with many investors moving to the sidelines ahead of a key European Union summit this week where policymakers are expected to find a way to end the region's two-year-old debt crisis.
"No one wants to hold stockpiles ahead of the year end and the market is extremely quiet," said Dick Poon, manager of precious metals at Heraeus in Hong Kong.

No comments: