Wednesday, December 28, 2011

20111228 1602 Global Market & Commodities Related News.

Shares slip in thin trade, oil stays firm on Iran
TOKYO, Dec 28 (Reuters) - Asian shares eased in low volume with many market players away for year-end holidays, while oil kept gains from  the previous day on concerns about possible supply disruptions after Iran threatened to stop the flow of oil from the Gulf.
"More people want to bring their positions to neutral ahead of the new year's holidays than look for bargain hunting, and that's keeping prices depressed in low volumes," said Tetsuro Ii, the president of Commons Asset Management in Tokyo.

US soy, corn drop from 6-wk tops, farmer selling weighs
SINGAPORE, Dec 28 (Reuters) - U.S. soybeans slid 1 percent, after climbing to a six-week top in the last session, while corn eased as higher farmer selling and a broad-based weakness in the global markets prompted investors to book profit.
"The farmers had kept the supply in the physical market very tight until they saw the rally," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney. "Now they are cashing in on the rally, that is the move which has motivated some selling."

South Brazil, key Argentina soy critically dry
BRASILIA, Dec 27 (Reuters) - No rain is in sight for thirsty soy-growing areas in southern Brazil and in Argentina, forecasters said, threatening crops already hit by long dry stretches and causing futures prices to jump on Tuesday.
December rainfall in Brazil's southernmost state Rio Grande do Sul has been far below the average, which is bad for newly seeded crops, and the situation is growing critical in neighboring Argentina, the top exporter of soy-derived products.

Crop scout Cordonnier cuts S. America crop size
CHICAGO , Dec 27 (Reuters) - Widely followed crop scout Michael Cordonnier has cut his estimates for South American corn and soybean production for 2011/12 and indicated further reductions may be necessary.
"Certainly this is an ominous forecast and if it verifies it would cause more harm to the crops and begin to stress soybeans when they're flowering and setting pods," Cordonnier said.

Dry spell still a concern in Ivorian cocoa regions
DAKAR, Dec 27 (Reuters) - Prolonged drought conditions mixed with the dry harmattan wind last week in most of Ivory Coast's cocoa regions could reduce the size and hamper the quality of Ivorian main cocoa crop, farmers said on Tuesday.
The harmattan, which blows south from the Sahara from December to March, is sweeping through most of Ivory Coast's cocoa regions, reducing air moisture needed for the development of cocoa pods.

China asks major energy users to save 250 mln T coal
BEIJING, Dec 28 (Reuters) - The Chinese government has called on the country's biggest energy users to save 250 million tonnes of standard coal in the five years ending 2015, the National Development and Reform Commission said in a release published on Wednesday.
The 17,000 companies, which annually consume more than 10,000 tonnes of standard coal each, or above 5,000 tonnes for certain stipulated companies, accounted for more than 60 percent of total energy consumption in 2010, the commission said.

Brent steadies above $109, Iran threat supports
SINGAPORE, Dec 28 (Reuters) - Brent crude oil steadied above $109 a barrel after rallying for six straight sessions, supported by Iran's threat to halt oil shipments through the Strait of Hormuz.
"I'm a long term bull and what we are seeing is justification as to why you want to be in for the long term," said Greg Smith, executive director of Global Commodities Ltd.

London copper falls as U.S. housing prices sag
KUALA LUMPUR, Dec 28 (Reuters) - London copper dropped, snapping four days of gains, on concerns that demand for the metal used in pipes and electrical wires will wane after a report showed weak house prices in the United States, the world's largest economy.
"There's no safe haven except for cash," said Tan Teng Boo, who helps manage about $350 million at Capital Dynamics in Kuala Lumpur.

Peru approves independent review of $4.8 bln Newmont mine
LIMA, Dec 27 (Reuters) - Peru will give independent scientists 40 days to review Newmont Mining's $4.8 billion Conga project, the prime minister said on Tuesday, trying to break a bitter political deadlock that has challenged President Ollanta Humala's young administration.
Prime Minister Oscar Valdes agreed with representatives from 32 towns near the proposed gold mine to have an international team of scientists review the environmental impact study for the project, which would replace a string of alpine lakes with reservoirs.

Freeport Indonesia union says halts return to work after strike
JAKARTA, Dec 27 (Reuters) - Workers at Freeport McMoran Copper & Gold Inc's  mine in Indonesia halted on Tuesday their return to work after a three-month strike, pending the resolution of a labour dispute, senior union officials said.
The delay in the return to work will push back the resumption of full operations of the world's second biggest copper mine. The Arizona-based company had earlier said it expected full operations at the mine to resume in early 2012.

Japan Nov zinc exports up 64 pct, led by China
TOKYO, Dec 27 (Reuters) - Japan's exports of refined zinc surged to 11,712 tonnes in November, up 64 percent from a year earlier, driven by a three-fold jump in exports to China, customs-cleared data showed on Tuesday.  
Exports to China increased to 3,578 tonnes, up from 1,191 tonnes a year before, replacing Taiwan as the top importer of Japan's refined zinc and accounting for about 30 percent of total exports.

China steel products demand to reach 646 mln T in 2012 - report
SHANGHAI, Dec 28 (Reuters) - China's consumption of steel products is expected to reach 646 million tonnes in 2012, marginally higher than this year's level, the state-owned China Securities Journal reported on Wednesday.
The report said the China Metallurgical Industry Planning and Research Institute had estimated consumption of finished steel products in the world's top steel producer and consumer at 610 million tonnes this year.

Iron Ore-China market quiet as traders stay on sidelines
BEIJING, Dec 28 (Reuters) - Spot iron ore prices in China remained steady on Wednesday with buyers and sellers in the world's biggest market staying on the sidelines as they await the new year.
"It has been quite crazy this year but this is a normal tailing-off and activities will certainly resume after the Chinese new year," said a trader based in Beijing.

China's daily steel output dips in mid-Dec -CISA data
SHANGHAI, Dec 27 (Reuters) - China's daily crude steel output fell to 1.666 million tonnes in the second ten days of December, down 0.44 percent from the preceding ten days, data from the China Iron & Steel Association showed on Tuesday.
Steel mills in the world's top steel-producing country have continued to reduce production to cope with declining steel demand in the winter season, when construction activity is suspended in northern regions.

Japan Q1 crude steel demand seen at near 2-yr low
TOKYO, Dec 27 (Reuters) - Japanese demand for crude steel is expected to fall 6.2 percent from a year earlier to an almost two-year low of 26 million tonnes in the January-March quarter, as a plunge in steel exports outweighs strong demand from the domestic auto sector, the trade ministry said on Tuesday.
The ministry estimates Japan's annual crude steel output for the year to March 2012 at 105.92 million tonnes, 4.87 million tonne, or 4.4 percent, less than a year ago.

Vale giant ore ship makes maiden arrival in China
SHANGHAI/SINGAPORE, Dec 28 (Reuters) - China has received the first of Vale's  giant iron ore vessels, industry sources said on Wednesday, a major breakthrough for the Brazilian miner after months of uncertainty over the fleet's access to the world's top steelmaker.
Top iron ore exporter Vale is spending billions of dollars to build the world's biggest dry bulk ships to cut the cost of shipping the steelmaking ingredient to China, but until now had failed to gain Beijing's approval for the six vessels already on the water to even stop at a Chinese port.

Gold inches down as growth concerns weigh
SINGAPORE, Dec 28 (Reuters) - Gold edged lower tracking falls in industrial metals and equities, as concerns about global economic growth weighed on market sentiment amid thin year-end trading volumes.
"There have been a couple of positive signs on the U.S. economy, but it's hard to be hung up on them too much," said a Singapore-based trader.

Russian 11-mo gold output up 4.5 pct at 193.8 T-lobby
MOSCOW, Dec 27 (Reuters) - Russian gold companies produced 193.8 tonnes of gold in the first 11 months of 2011, 4.5 percent more than in the same period of 2010, the Gold Industrialists' Union industry lobby said on Tuesday.
The lobby expects Russia to produce 211 tonnes of gold this year, of which 185 tonnes will be mined.

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