Tuesday, February 21, 2012

20120221 0943 Global Commodities Related News.

Commodities Extend Rally on Greek Deal Optimism, China’s Bank Reserve Cut (Source: Bloomberg)
Commodities gained for a fourth day after China cut banks’ reserve requirements and speculation increased that euro-area governments are set to agree on a deal to release a second bailout for Greece, hurting the dollar. Oil rose as much as 1.9 percent to $105.21 per barrel in New York, the highest intraday price since May 5, after Iran said it halted some crude exports to Europe. Copper in London advanced as much as 2.7 percent to $8,396.50 per metric ton, rising for the first day in seven as base metals rallied. China cut the amount of cash that banks must set aside as reserves by half a percentage point from Feb. 24, the People’s Bank of China said Feb. 18. European finance ministers meet in Brussels today to try and close in on the 130 billion-euro ($172 billion) Greek bailout. The dollar declined against most of its 16 major counterparts, according to data tracked by Bloomberg.
“There’s a general feeling of optimism ahead of the Greece conclusion,” Jonathan Barratt, chief executive of Barratt’s Bulletin, a commodity-markets newsletter, said from Sydney. “They think they will resolve any outstanding disputes.”

Brazil planning giant Amazon soybean port-paper
RIO DE JANEIRO, Feb 18 (Reuters) - Brazilian port authorities are planning a new grains port in the Amazon region, a terminal designed to become the country's largest soybean export center and to slash transportation costs for farmers, the Folha de S. Paulo newspaper reported Saturday.
The proposed 18 million-tonne-a-year Port of Outeiro would be built near Belem, the largest city in Brazil's Amazon region.

Rains boost Argentina 2011/12 soy but more needed-gov't
BUENOS AIRES, Feb 17 (Reuters) - Rains that soaked parched Argentine 2011/12 soy this week boosted crop growth but some areas are still in need of showers, the Agriculture Ministry said on Friday.
Weeks of dry weather reduced prospects for a record 2011/12 harvest in the world's No. 3 soybean exporter, which is also the top supplier of soyoil and soymeal, though recent showers have improved the outlook, especially for later-seeded crops.

Brazil's top grain terminal resumes partial loading
SAO PAULO, Feb 17 (Reuters) - Brazil's TGG said on Friday it will resume loading soybeans, meal and corn at half capacity, ending a five-day interruption to exports from the main grain terminal in the country that should lead the world in soybean exports this year.
TGG expects to resume loading grain from two of its four grain loaders at 8 p.m. Brasilia time (2300 GMT), the company said in a statement. Each of its loaders can move 1,500 tonnes of dry bulk grains an hour.

China signs deals for record 13.4 mln T US soy
CHICAGO, Feb 17 (Reuters) - A Chinese trade delegation signed deals to buy a record amount of U.S. soybeans during a visit to the United States this week at a time when a harsh drought has slashed crops in rival soy exporters in South America.
The delegation inked agreements for 13.4 million tonnes valued at $6.7 billion, the U.S. Soybean Export Council said on Friday, a quarter of the more than 55 million tonnes the world's largest soybean buyer will import from global suppliers this year.

Brazil's 2012/13 coffee crop 55.0 mln bags-Neumann
HAMBURG, Feb 17 (Reuters) - Brazil's upcoming 2012/13 arabica coffee crop will reach 55.0 million 60-kg bags, giant German coffee trader Neumann Kaffee Gruppe (NKG) said in a report seen by Reuters on Friday.
This is lower than the forecast of 55.8 million bags made by Brazilian exporter Comexim on Feb. 3 and well over official Brazilian government forecasts of 49 million to 52.3 million bags.

Record Rice Harvests Seen Boosting Stockpiles to Decade High: Commodities (Source: Bloomberg)
Rice stockpiles are poised to reach the biggest in almost a decade as record harvests boost supplies and imports decline for the first time in three years. Inventories may gain 3 percent to 100.1 million metric tons, the most since 2003, as global imports contract 7.5 percent, the U.S. Department of Agriculture says. The Thai export price, a global benchmark, may tumble as much as 11 percent to $500 a ton in the first half, the lowest since June last year, the median of 11 trader and exporter estimates compiled by Bloomberg shows.
Rice slumped 15 percent from a three-year high in November as India, the second-biggest grower after China, lifted a three- year ban on exports of non-basmati grain and Thailand, the largest shipper, bought less than expected in the first four months of a government stockpiling program. That’s boosted supplies of the staple for half the world at a time when farmers are planting record wheat and corn crops. Global food costs dropped 10 percent from a record in February 2011, according to the United Nations.

Brent hits 8-mth top above $121 after Iran, China moves
SINGAPORE, Feb 20 (Reuters) - Brent crude futures rose  to above $121 a barrel, the highest in eight months, as Iran cut its exports to Britain and France months ahead of a European Union embargo and as a policy easing by China and hopes for a Greek bailout supported prices.
"This is supply related so it had a psychological impact on the oil market," Ken Hasegawa, a Tokyo-based commodity sales manager at Newedge Japan, said.

Japan Jan crude imports fall 2.1 pct yr/yr
TOKYO, Feb 20 (Reuters) - The volume of Japan's customs-cleared crude oil imports fell 2.1 percent in January from a year earlier, government data showed on Monday, extending the downtrend into a third month, while  imports of liquefied natural gas (LNG) hit a record high.
LNG demand in Japan, the world's third-biggest oil user and the top LNG importer, has been strong, reflecting the need for power generation to offset record low nuclear plant utilisation rates in the wake of the Fukushima crisis.

Iran stops oil sales to British and French firms
TEHRAN, Feb 19 (Reuters) - Iran has stopped selling crude to British and French companies, the oil ministry said on Sunday, in a retaliatory measure against fresh EU sanctions on the Islamic state's lifeblood, oil.
"Exporting crude to British and French companies has been stopped ... we will sell our oil to new customers," spokesman Alireza Nikzad was quoted as saying by the Ministry of Petroleum website.


US coal consumption rose 8 pct last week – Genscape
U.S. coal consumption rose 8 percent last week from the previous week but was down 4 percent from the same week a year ago, power industry data monitor Genscape said Friday.  
Coal use swings up and down seasonally, and varies from week  to week and region to region, depending on electricity demand to  run air-conditioners or power heaters.

Euro Coal-Prices rise 50 cents-$1.50 in quiet trade
LONDON, Feb 17 (Reuters) - Prompt European physical coal prices ticked higher again by 50 cents to $1.50 on Friday as less coal was offered.
No fresh trades were reported and activity was quiet, utilities and traders said.


Oil Rises to Nine-Month High on Iran Export Halt, Europe Bailout Meeting (Source: Bloomberg)
Oil traded near the highest price in nine months in New York amid speculation supplies may be disrupted after Iran said it halted some crude exports, while European finance ministers met to discuss a bailout of Greece. Futures climbed as much as 2.1 percent for a fourth day of gains, the longest rising streak since December. Iran will supply crude to “new customers” instead of companies in the U.K. and France, the oil ministry’s news website Shana reported Feb. 19, citing spokesman Alireza Nikzad Rahbar. European finance ministers haggled into the night in Brussels over the terms of a second rescue for Greece in less than two years as they aimed to prevent a default that could shatter the euro area and prompt a fresh round of market tumult.
Futures for March delivery, which expire today, advanced as much as $2.20 to $105.44 in intra-day trading, the highest since May 5. The contract was at $104.61 at 11:24 a.m. in Sydney, while the more actively traded April future gained $1.32 to $104.92. Floor trading was shut Feb. 20 for the U.S. Presidents’ Day holiday. Today’s trades will be booked with yesterday’s electronic transactions for settlement. Prices are 21 percent higher the past year.

Japan January crude steel output falls 10.60 pct yr/yr
TOKYO, Feb 20 (Reuters) - Japan's crude steel output fell 10.60 percent in January from a year earlier to 8.63 million tonnes, the Japan Iron and Steel Federation said. Output, which is not seasonally-adjusted, increased 2.70 percent from December.

Copper Gains as Top Consumer China Eases Policy Further to Stoke Lending (Source: Bloomberg)
Copper rose in London, rebounding from the longest losing streak since September, after China eased reserve requirements to stoke lending in the world’s biggest consumer of the metal. The proportion of cash that Chinese lenders must set aside will fall half a percentage point as of Feb. 24, the People’s Bank of China said Feb. 18. The reduction was the second in three months. Copper also climbed after money managers increased bets on price gains to the highest level since August. “The cut is certainly a step in the right direction,” Nic Brown, head of commodities research at Natixis Commodity Markets Ltd. in London, said by e-mail. Copper for three-month delivery settled 0.7 percent higher at $8,235.50 a metric ton on the London Metal Exchange. Prices slid 6.7 percent over six sessions before today. Copper for May delivery rose 1.1 percent to $3.7565 a pound by 1:06 p.m. on the Comex in New York, where floor trading was closed today for the Presidents’ Day holiday.

LME copper rallies after China policy easing
SHANGHAI, Feb 20 (Reuters) - London copper rallied  as a policy easing in China, the top consumer of most metals, and hopes that a bailout fund would be signed off for Greece buoyed riskier assets.
"It is a positive reaction (to China's policy easing), but we still have to see how sustainable these gains can be - we would need to see more signs of improving demand from the physical market," Singapore-based analyst Stefan Graber of Credit Suisse Private Banking said.


Iron Ore-Shanghai rebar ends 7-day slide on China easing
SINGAPORE, Feb 20 (Reuters) - China's efforts to boost lending boosted Shanghai steel futures rose half a percent on Monday after seven straight days of losses, but the modest gain suggests steel demand will remain weak until Beijing eases property market curbs.
China on Saturday said that it would cut the amount of cash banks need to keep with the central bank, joining global counterparts in stimulating economic growth.

China imported iron ore stocks dip in wk ending Feb 17
BEIJING, Feb 17 (Reuters) - Stockpiles of imported iron ore at major Chinese ports fell 1 percent this week to end Friday at 99.25 million tonnes, according to data from industry consultancy Mysteel.
Shipments from India rose slightly from last week, but there was a decline in deliveries from both Australia and Brazil.

China raises mining taxes on iron, tin, other minerals -paper
SHANGHAI, Feb 17 (Reuters) - China has increased mining taxes on iron ore, tin and a range of minerals in a bid to conserve resources, a newspaper reported on Friday, a move analysts said was aimed at regulating the industry by hiking costs for smaller producers.
The increase was effective Feb. 1, the Shanghai Securities News said. In addition to iron ore and tin, the levy also covers mining for molybdenum, magnesium, talc and boron, but officials at three major mining companies said they had not been notified of any levy changes.


Gold Imports by India May Drop From Record, Making China Biggest Consumer (Source: Bloomberg)
Gold imports by India will decline for the first time in three years in 2012 as rising prices deter jewelry buyers and investors, potentially allowing China to overtake the nation as the world’s largest consumer. Imports may drop 7.1 percent to 900 metric tons this year, according to the median estimate in a Bloomberg News survey of eight analysts, brokers and jewelers including Rajesh Exports Ltd. (RJEX), the biggest gold-jewelry exporter. India bought a record 969 tons in 2011, according to the World Gold Council. Falling imports may help to halt a rally in global prices that's set for a 12th year. Gold has surged as investors seek to protect their wealth from volatility in stock markets, depreciating currencies and the threat of inflation.

Gold advances on Greece optimism, China easing
SINGAPORE, Feb 20 (Reuters) - Gold prices climbed more than half a percent, as investors buoyed by easing moves by China's central bank and hopes for Greece to seal a bailout deal at a meeting with euro zone officials later in the day.
"There is the expectation that everyone is going to relax monetary policy, which will be good for stocks and commodities," said Ronald Leung, a physical dealer with Lee Cheong Precious Metals in Hong Kong.

China central bank may be behind surge in gold imports
SINGAPORE, Feb 17 (Reuters) - China's central bank, flush with foreign reserves, may be behind the surge in the country's gold imports late last year, but industry sources said the bank usually favours sourcing gold domestically over direct buying from overseas.
China's gold production, combined with imports from Hong Kong, exceeded consumer demand by 140 tonnes in the last quarter of
2011, according to Reuters calculations based on data from the World Gold Council (WGC) and Hong Kong trade numbers.

LME copper upbeat after China policy easing
London copper rallied as riskier assets were buoyed by a policy easing in China, the top consumer of most metals, and hopes that a bailout fund would be signed off for Greece.
"It is a positive reaction (to China's policy easing), but we still have to see how sustainable these gains can be -- we would need to see more signs of improving demand from the physical market," said Singapore-based analyst Stefan Graber of Credit Suisse Private Banking.

Gold advances on Greece optimism, China easing
SINGAPORE, Feb 20 (Reuters) - Gold prices climbed more than half a percent as investors buoyed by easing moves by China's central bank and hopes for Greece to seal a bailout deal at a meeting with euro zone officials later in the day.
"There is the expectation that everyone is going to relax monetary policy, which will be good for stocks and commodities," said Ronald Leung, a physical dealer with Lee Cheong Precious Metals in Hong Kong.


Baltic index dips 3rd day, big ships sour sentiment
Feb 17 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell for a third day on Friday as weak cargo business on the capesize and panamax markets battered sentiment.
The overall index, which gauges the cost of shipping commodities such as iron ore, cement, grain, coal and fertiliser, fell 6 points or 0.83 percent to 717 points.

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