European Stock Futures Rise Amid ECB Hope (Bloomberg)
European stocks rose amid speculation the European Central Bank will announce measures to boost the economy as the region’s leaders meet to lay the foundations for a fiscal union. U.S. futures fluctuated and Asian shares fell. The benchmark Stoxx Europe 600 Index advanced 0.5 percent to 242.52 at 8:10 a.m. in London, halting a two-day decline. The gauge posted its biggest rally since November 2008 last week as central banks lowered the interest rate on dollar funding and China reduced its reserve ratio for banks. “A rate cut of at least 25 basis points is expected from the ECB, but what may be more important is what will be said at the press conference,” said Robert Talbut, who helps oversee about $70 billion as chief investment officer at Royal London Asset Management Ltd. “We’re looking for words that the summit will bring forward early and significant additional policy from the ECB on bond buying. People will be hanging onto the words of any policy makers in the next 48 hours.”
FOREX - Euro holds breath before ECB, EU meetings
TOKYO, Dec 8 (Reuters) - The euro struggled to make much headway in Asia on Thursday and consolidated further ahead of an expected European Central Bank interest rate cut and a crucial EU leader summit that is to address the euro zone's two-year-old debt crisis.
The euro hovered at $1.3401 , roughly in the middle of its tight $1.3332-3486 range from the past week. It nudged as high as $1.3428 after the Nikkei business daily said the G20 was preparing a $600 billion lending facility for the IMF to help Europe, but the effect faded after it was denied by G20 and IMF officials.
China Nov commodities imports to rise; outlook uncertain
SHANGHAI, Dec 8 (Reuters) - China's import appetite for commodities ranging from crude oil to copper and soy likely improved in November because of lower prices, but global uncertainty and a slowdown in the world's second-largest economy could dampen demand in the months ahead.
Demand for power and a raft of raw materials such as oil products, cotton and aluminium is set to take a hit in the face of softer exports, particularly for textiles and electronics.
Malaysia's Nov palm oil stocks likey to fall for second month
KUALA LUMPUR, Dec 7 (Reuters) - Malaysian palm oil stocks likely fell for a second consecutive month in November, with the decline in production outpacing the drop in exports, a Reuters survey of seven plantation houses showed.
Stocks in the world's No.2 producer of the edible oil probably dropped 6.7 percent to 1.96 million tonnes from 2.1 million tonnes in October, the survey showed, with the pace of the decline rising but staying well below double-digits thanks to strong imports.
US wheat, corn extend losses; EU summit eyed
SINGAPORE, Dec 8 (Reuters) - U.S. wheat and corn futures extended losses as concerns about weakening demand resurfaced and speculators turned cautious ahead of a make-or-break European Union leaders summit to resolve the region's deteriorating debt crisis.
"It seems that for the past week, wheat is the one that has been more volatile. It's more prone to huge swings, more than corn. I think corn is supported at $5.80 level," said Lynette Tan, an analyst with Phillip Futures.
Vietnam 2012 coffee export to fall to 1 mln T-Vicofa
HO CHI MINH CITY, Dec 8 (Reuters) - Vietnam's coffee exports next year is forecast to fall 16.7 percent to 1 million tonnes, as more coffee is used at home to serve drinkers of the beverage and for more processing of instant coffee, a senior industry official said on Thursday.
"The export volume will fall because of rising domestic consumption and production of instant coffee," Chairman Luong Van Tu of the Vietnam Coffee and Cocoa Association said. He was referring to the calendar year ending December.
Vietnam coffee production hits peak, downtrend ahead-Vicofa
HO CHI MINH CITY, Dec 8 (Reuters) - Coffee production in Vietnam, the world's top robusta producer, has reached its peak, yielding around 1.2 million tonnes under the current 2011/2012 crop, and output would be declining in coming years, a senior industry official said on Thursday.
The Southeast Asian country is forecast to consume 100,000 tonnes in the current crop year, or 8.3 percent of the output, up from 7 percent in the previous season, Chairman Luong Van Tu of the Vietnam Coffee and Cocoa Association said.
Indonesia 2011/12 coffee output revised up, Colombia's cut-ICO
HO CHI MINH CITY, Dec 8 (Reuters) - The International Coffee Organization (ICO) has revised up coffee output from Indonesia, the world's third-biggest producer, under the current 2011/2012 crop to 8.75 million bags from 6.67 million bags estimated earlier.
Output from Colombia, the fourth-largest producer, is cut to 8.5 million bags under the current crop year, from 9.2 million bags in an earlier estimate, ICO Executive Director Roberio Oliveira Silva said in his slides to an international coffee conference on Thursday.
Argentina wheat crop estimate raised - Rosario
BUENOS AIRES, Dec 7 (Reuters) - Argentina's 2011/2012 wheat crop is expected to come in at 12.8 million tonnes, higher than an earlier forecast of 12.4 million tonnes due to improved weather conditions in a major wheat-producing region, the Rosario grains exchange said on Wednesday.
The exchange did not change its 2011/12 soy output forecast of 49.5 million tonnes and kept the corn output estimate for this season at 26 million tonnes.
Weather helping Brazil's next cane crop -CTC
SAO PAULO, Dec 7 (Reuters) - Favorable weather and a near 5 percent increase in planted area should lead to an increase in cane output in Brazil's center-south next season, sugar cane research center CTC said Wednesday.
Cane yields will rise after falling to their lowest level in 24 years this season, due to adverse weather since 2009 and the lack of investment in the replanting of cane fields with fresh, more productive stalks.
Brazil Nov green coffee exports down 8 pct vs yr ago
BRASILIA, Dec 7 (Reuters) - Brazil exported 2.7 million 60-kg bags of green coffee in November, nearly 8 percent less than in the same month of 2010, the Council of Green Coffee Exporters, Cecafe, said on Wednesday.
Brazil's 2011 harvest was smaller than last year's on account of a biennial cycle that causes output to rise and fall from one year to the next.
Ivorian Sifca to invest 56.5 mln euros to boost sugar
ABIDJAN, Dec 7 (Reuters) - Ivory Coast agro-industry group Sifca will invest 56.5 million euros ($75.6 million) in sugar planting and plantations to boost production by nearly a third from 2014 in order to satisfy local demand, the company's chairman said on Wednesday.
The project is aimed at reaching a maximum annual sugar cane production capacity of about 1 million tonnes, producing 115,000 tonnes of sugar, Jean Louis Billon told a news conference in Abidjan. Current production is about 87,000 tonnes.
Brent steady above $109 ahead of EU summit
SINGAPORE, Dec 8 (Reuters) - Brent crude was steady above $109, after a sharp fall in the previous session, as the market stayed cautious ahead of a summit to deal with Europe's sovereign debt crisis.
"Fundamentals are better than expected and the U.S. and Chinese economies seem to be stabilising, but trading will be cautious before Friday's Europe meeting," said Tetsu Emori, a fund manager with Astramax Co. in Tokyo.
Sinopec Guangzhou to run at least 250,000 bpd of crude in 2012
BEIJING, Dec 8 (Reuters) - Sinopec Corp's Guangzhou refinery plans to process a record 250,000 to 253,000 barrels per day of crude oil and produce 220,000-223,000 tonnes of ethylene in 2012.
The plant formulated the plan during a company conference on Dec 2-4, according to a report posted on a Sinopec website.
German sugar crop going well, big output seen
HAMBURG, Dec 7 (Reuters) - Germany's sugar beet harvest is progressing very well in favourable weather and the country is likely to achieve the forecasts of a sharp rise in sugar output, the head of German sugar industry association WVZ told Reuters on Wednesday.
"Harvest progress is excellent and weather is favourable," said WVZ chief executive Dieter Langendorf. "Confidence is growing that we will achieve our production targets."
Vietnam's 2011/12 coffee output seen up, costs a concern
HO CHI MINH CITY, Dec 7 (Reuters) - Vietnam's coffee output from the 2011/2012 harvest due to end next month is likely to be 9 percent higher than the previous harvest, a senior industry executive said on Wednesday, as farmers invest more in improving yields.
Output is expected to rise to 1.25 million tonnes, equivalent to 20.83 million bags, beating a previous forecast by Vietnam's coffee industry body. This could put pressure on global prices if supplies are released into the market quickly, though farmers are trying to hold on to stocks to avoid a glut.
LME copper treads water ahead of EU summit
SINGAPORE, Dec 8 (Reuters) - London copper futures were little changed, reflecting caution among investors ahead of a high-stakes European Union summit aimed at resolving a crippling euro zone debt crisis that has weighed on the outlook for global demand.
"Sentiment for industrial commodities appears to be a bit weaker ahead of these two key events," Robertson said.
China's annual iron ore demand 1.13 bln T by 2015
SHANGHAI, Dec 8 (Reuters) - China's annual iron ore demand is expected to rise more than 20 percent to 1.13 billion tonnes by 2015 due to strong steel production, media reported on Thursday, citing the Ministry of Industry and Information Technology.
Despite Beijing's efforts to restructure its economy to rely less on infrastructure spending, it will take time for the new economic model to take shape, which means domestic steel consumption would continue to grow at robust rates, the ministry said in a briefing on the steel sector's outlook.
China late Nov daily crude steel output 1.685 Mln T -CISA
SHANGHAI, Dec 8 (Reuters) - China's average daily crude steel output rose to 1.685 million tonnes in late November, rebounding for the first time in over a month, but doubts remain about underlying steel demand as the government's clampdown on the property sector remains firmly in place.
Chinese steelmakers are struggling with lower orders and swollen inventories and have conducted overhauls well as production cuts at their facilities.
China's annual iron ore demand 1.13 bln T by 2015
SHANGHAI, Dec 8 (Reuters) - China's annual iron ore demand is expected to rise more than 20 percent to 1.13 billion tonnes by 2015 due to strong steel production, media reported on Thursday, citing the Ministry of Industry and Information Technology.
Despite Beijing's efforts to restructure its economy to rely less on infrastructure spending, it will take time for the new economic model to take shape, which means domestic steel consumption would continue to grow at robust rates, the ministry said in a briefing on the steel sector's outlook.
Copper miners face higher smelting fees in 2012-CRU
LONDON, Dec 7 (Reuters) - Recent agreements by Freeport McMoRan Copper & Gold to pay higher processing fees have paved the way for higher benchmark prices next year by eroding the bargaining power of other global miners, a CRU Group consultant said on Wednesday.
Freeport agreed to a 12.4 percent increase in the fees it pays smelters to process its ore.
Copper miners face higher smelting fees in 2012-CRU
LONDON, Dec 7 (Reuters) - Recent agreements by Freeport McMoRan Copper & Gold to pay higher processing fees have paved the way for higher benchmark prices next year by eroding the bargaining power of other global miners, a CRU Group consultant said on Wednesday.
Freeport agreed to a 12.4 percent increase in the fees it pays smelters to process its ore.
Colombia minister opposes mining, oil tax
BOGOTA, Dec 7 (Reuters) - Colombia's Energy Minister Mauricio Cardenas said he would oppose an effort in Congress to levy a tax on mining and crude exports that would ensure environmental standards are met.
Cardenas in an interview late on Tuesday said he was unaware that lawmakers planned to seek the tax as part of a wider tax reform bill but that he would be "completely" against changing the "rules of the game" for oil and mining companies in Colombia.
METALS - LME copper treads water ahead of EU summit
SINGAPORE, Dec 8 (Reuters) - London copper futures were little changed on Thursday, reflecting caution among investors ahead of a high-stakes European Union summit aimed at resolving a crippling euro zone debt crisis that has weighed on the outlook for global demand.
Trading was also tepid ahead of a slew of Chinese data, including inflation and industrial output, to be released on Friday, although analysts say weaker numbers may prompt Beijing to cut bank reserve requirement further, which could boost commodity prices.
PRECIOUS - Gold edges down as investors fret over Europe
SINGAPORE, Dec 8 (Reuters) - Gold inched lower on Thursday, along with equities, as concerns set in about whether European leaders would be able to come up with a concrete plan to contain the region's crippling debt crisis at a crucial summit on Friday.
Hopes for a definitive plan to tackle the two-year-old euro zone debt crisis were feeble a day before the key EU summit, echoed by comments from a senior German official and new figures exposing deepening stress among Europe's banks.
Gold edges down as investors fret over Europe
SINGAPORE, Dec 8 (Reuters) - Gold inched lower, along with equities, as concerns set in about whether European leaders would be able to come up with a concrete plan to contain the region's crippling debt crisis at a crucial summit on Friday.
"A final solution out of Europe is highly unlikely," Jeremy Friesen, Commodity Strategist at Societe Generale in Hong Kong, said, but added that a serious misstep also looked unlikely as central banks and finance ministries have shown the will to cooperate to fight the crisis, which is threatening to split up the euro zone and sink the global economy into recession.
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