Wednesday, February 8, 2012

20120208 1636 Global Market & Commodities Related News.

Shares edge up, euro eases as Greek talks drag
TOKYO, Feb 8 (Reuters) - Asian shares nudged up near their highest in more than five months and the euro hovered close to an 8-week high as investors kept hopes alive for an agreement on details of a new Greek bailout package despite further delays.
"It's really a reaction in terms of the better turn in the U.S. markets," said Guy Stear, head of research with Societe Generale in Hong Kong. U.S. stocks ended up, underlined by  improved sentiment on recent above-forecast economic figures.

FOREX-Euro near 2-month high on hopes for Greece debt deal
SINGAPORE, Feb 8 (Reuters) - The euro eased on Wednesday but still held near a two-month high, supported by hopes that Greece may soon agree to austerity steps needed to secure a second bailout and avoid a disorderly default.    
The dollar rose versus the yen, helped by dollar demand from Japanese importers. Cross/yen pairs were also mostly firmer, their near-term technical outlook having improved after they breached some resistance levels recently.

Malaysian exporters halt palm oil supply to Iran -sources
KUALA LUMPUR, Feb 8 (Reuters) - Malaysian palm oil exporters have stopped supplying most of the 30,000 tonnes of the food staple Iran used to buy each month from the Southeast Asian producer as fresh Western financial curbs on Tehran stymie payment procedures, two trading sources said.
The halt in Malaysia's palm oil exports, which the traders said started late last year, is the latest sign that sanctions aimed at persuading Iran to abandon a suspected nuclear weapons programme have started to bite.

Corn, wheat steady after fall; soy near 3-month top
SINGAPORE, Feb 8 (Reuters) - Chicago wheat and corn were little changed on Wednesday after dropping in the last session on the back of milder Black Sea weather, as investors squared positions ahead of a key U.S. demand and supply report.
"The soy market is slightly bullish at the moment because of the South American crop worry," said analyst Ker Chung Yang at Phillip Futures in Singapore. "There have been beneficial rains for the crop yields to improve but expectations are that USDA will reduce production estimates."

Illinois farmers worried by extremely warm winter
CHICAGO, Feb 7 (Reuters) - Illinois, a key farm state in the heart of the Corn Belt, is basking in its sixth warmest winter in 117 years good news for residents who have not had to shovel snow but a red flag for some of the state's most productive businesses: farms.
Illinois and neighboring Iowa - also in the midst of a balmy winter - produce about a third of all the corn and soybeans grown in the United States, the world's largest exporter of both crops. Farmers in both states feel more comfortable when there is a substantial snow cover to ensure adequate soil moisture that can nurture crops through the region's hot dry summers.

Rains this week may stanch Argentine soy losses
BUENOS AIRES, Feb 7 (Reuters) - Rains this week in Argentina may stanch soy losses after a drought chopped yields by an estimated 20 percent and took as much as 30 percent off the corn crop in the global food supplier, forecasters said on Tuesday.
Storms are expected to sweep the country's Pampas agricultural area on Wednesday. As global grains stocks tighten, Argentine growers as well as government beancounters and sovereign bondholders hope the rain refreshes soy crops baked by what has been an unforgiving Southern Hemisphere summer sun.

Paraguay soy crop seen down 45 pct due to drought
ASUNCION, Feb 7 (Reuters) - Paraguay's soy output is expected to plunge 45 percent from last year due to a drought that hit crops across the region, a bigger loss than previously forecast, a soy farmers group said on Tuesday.
The estimate by the UGP association points to 2011/12 production of 4.6 million tonnes compared with a record 8.4 million tonnes last season in Paraguay, the world's No. 4 soy exporter.

US farmers to plant largest corn area in 68 yrs
Feb 7 (Reuters) - U.S. farmers this spring will seed the largest area with corn since World War Two as a mild and dry winter has raised expectations for a quick planting this spring , a Reuters poll of 24 analysts showed, signaling a boost to razor-thin stocks and lower prices in 2012.
The survey showed that farmers were gearing up to plant 94.2 million acres, which could produce a record crop of 13.8 billion bushels based on a trendline yield of 161.4 bushels per acre. It would surpass the previous record of 13.1 billion in 2009.
 
India allows 1 mln T extra sugar exports-govt source
NEW DELHI, Feb 7 (Reuters) - India has decided to allow unrestricted exports of one million tonnes of sugar, a government source said on Tuesday, in line with industry expectations in the world's second-biggest producer of the sweetener after Brazil.
The biggest consumer of sugar, India had earlier allowed mills to export 1 million tonnes of sugar in the year beginning in October and the fresh exports had been on the cards for some time.

EIA sees 2012 US gas production up 2.3 pct from 2011
NEW YORK, Feb 7 (Reuters) - The U.S. Energy Information Administration on Tuesday slightly raised its estimate for domestic natural gas production growth in 2012, expecting output this year to be up 2.3 percent from 2011's record levels.
In its February Short-Term Energy Outlook, the EIA said it expected marketed natural gas production in 2012 to rise by 1.5 billion cubic feet per day (bcfd) to a record 67.64 bcfd, up from its January outlook that had output this year at 67.34 bcf daily.

Brent holds above $116 on U.S. stocks draw; Greece risk weighs
SINGAPORE, Feb 8 (Reuters) - Brent crude futures were steady above $116 a barrel, as a lift in sentiment from an unexpected fall in U.S. crude inventories was dampened by uncertainty over Greece's ability to resolve its debt problems.
"There is little doubt that should Greece come to an agreement with private debt holders and agree to tough austerity measures this would be viewed favorably in risk asset markets," said Ben Le Brun, market analyst with OptionXpress in Sydney.

LME copper steady; Greek debt talks eyed
SHANGHAI, Feb 8 (Reuters) - Copper prices steadied in London, after two straight days of losses, while investors focused on the euro zone debt situation after Greece delayed yet again its decision on a bailout deal.
"Greece is still the major focus of the market, so any negative news out of Greece could put pressure on metals prices," said analyst Judy Zhu of Standard Chartered in Shanghai.

Australia's Century zinc mine output slips in 2011
SYDNEY, Feb 8 (Reuters) - Output from Australia's Century zinc mine, the world's second largest, slipped 2.6 percent in 2011 versus the previous year, the mine's Chinese owner Minmetals  said on Wednesday.  
Century, which is expected to roughly maintain production levels until it runs out of ore in about four years, produced 497,251 tonnes of contained zinc over the year, down from 510,590 tonnes in 2010.

China's steelmakers next in line for debt stress
SHANGHAI, Feb 8 (Reuters) - China's steelmakers have racked up $400 billion in debt, which some may struggle to repay, making them a potential drag on a banking sector already facing rising bad loans from the property sector and local governments.
Steel firms that already have soaring debt-to-equity ratios and a shortage of liquid assets in relation to their short-term debts face sliding profit margins, rising raw materials costs, overcapacity and slower growth in the world's top steel market.

Alcoa reviewing future of Australian aluminium smelter
SYDNEY, Feb 8 (Reuters) - Alcoa Australia  said it was reviewing the future of its 190,000 tonne Point Henry aluminium smelter as tough global economic conditions have rendered the operation unprofitable.
Alcoa said the aluminium industry had been severely impacted by difficult macro economic conditions, with the higher Australian dollar placing increasing pressure on the market.

World copper mine capacity 26.2 mln T by 2015-ICSG
LONDON, Feb 7 (Reuters) - Annual copper mine production capacity is expected to reach 26.2 million tonnes in 2015 after rising at an average rate of 6.6 percent a year from 2012 through 2015, the International Copper Study Group (ICSG) said.
"Owing to project postponements following the 2008 economic crisis and to technical, financial and permitting delays, 74 percent of this growth (4.3 million tonnes) is expected to
only occur in 2014/2015," the Lisbon-based ICSG said in a press release on Tuesday.  

Port Hedland iron ore exports to China slow in January
SYDNEY, Feb 8 (Reuters) - Iron ore shipments to China through Australia's Port Hedland, one of the world's biggest export terminals, fell 15 percent in January compared to December, according to data released by the port authority on Wednesday.                
A cloudy outlook for steel demand in China has restrained  the appetite of steel mills for iron ore since late last year, according to commodities traders.

Gold holds near $1,745 as Greece buys more time
SINGAPORE, Feb 8 (Reuters) - Gold prices held steady around $1,745 an ounce, as investors waited with caution for Greece to grind towards a deal on a rescue package that it urgently needs after missing a string of deadlines.
"If Greece were to agree on everything right away, I don't think it would solve everything because they will still have to implement the measures," said Jeremy Friesen, commodity strategist at Societe Generale in Hong Kong.

METALS-LME copper steady; Greek debt talks eyed
SHANGHAI, Feb 8 (Reuters) - Copper prices steadied in London on Wednesday, after two straight days of losses, while investors focused on the euro zone debt situation after Greece delayed yet again its decision on a bailout deal.
Three-month copper on the London Metal Exchange  traded at $8,509 a tonne, up 0.3 percent, at 0255 GMT. Copper has notched up four consecutive weeks of gains, and has rallied almost 12 percent so far this year.  

PRECIOUS-Gold holds near $1,745 as Greece buys more time
SINGAPORE, Feb 8 (Reuters) - Gold prices held steady around $1,745 an ounce on Wednesday, as investors waited with caution for Greece to grind towards a deal on a rescue package that it urgently needs after missing a string of deadlines.
Athens tested investor's patience yet again on Tuesday by postponing a decision on whether to accept austerity and reform measures in exchange for a 130 billion euro ($172 billion) bailout from the IMF and EU.

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