Friday, March 2, 2012

20120302 1600 Global Market & Commodities Related News.

Shares firm as ECB liquidity boost lifts sentiment
TOKYO, March 2 (Reuters) - Asian shares and the euro inched up after a flood of cheap European Central Bank funds this week eased fears of a meltdown in the euro zone financial sector, overriding some weak data and concerns about surging oil prices.
"Central banks around the world keeping the global financial system awash with funds is prompting investors to keep the recent risk-on momentum," said Tetsuro Ii, the president of Commons Asset Management in Tokyo.

FOREX-Euro suffers post-ECB blues; downside seen
SINGAPORE, March 2 (Reuters) - The euro held steady versus the dollar and edged up against the Australian dollar on Friday but was seen likely to stay on the defensive after this week's massive cash injection by the European Central Bank.
The single currency held steady at $1.3308 , not far from a one-week low near $1.3280 hit the previous day.      

Indonesia refining advantage to dominate palm oil meeting
KUALA LUMPUR, March 2 (Reuters) - Top palm producer Indonesia's growing refining advantage over No. 2 supplier Malaysia will dominate an annual gathering of the world's palm oil business in Kuala Lumpur next week as traders examine shifts in demand.
Planters, refiners and bankers gather for the Bursa Malaysia Palm Oil Conference from Monday to Wednesday as the market for the tropical oil grows this year at the expense of soyoil, with the South American soy crop damaged by drought.

Wheat falls for 2nd day, soy dips after 9-session rally
SINGAPORE, March 2 (Reuters) - U.S. wheat and corn lost more ground as investors booked profit from recent gains, although the fall in wheat is being cushioned by Iran's first purchase of U.S. wheat in three years.  
"Grain markets are overbought and we are seeing a little bit of correction as there is not much fundamental support at the moment," said Lynette Tan, an analyst with Phillip Futures in Singapore.

Rains help Argentina's soy, corn crops recover
BUENOS AIRES, March 1 (Reuters) - A leading Argentine grains exchange held its soy and corn harvest estimates steady on Thursday, saying the rains that soaked fields over the past week have improved the outlook for soybeans.
Buenos Aires Grains Exchange forecast soy production at 46.2 million tonnes and expects a corn harvest of 21.3 million tonnes. Argentina is the world's no. 3 supplier of soybeans and the second-biggest corn supplier after the United States.

Argentine grains ports hit by dock workers' strike
BUENOS AIRES, March 1 (Reuters) - Argentine dock workers went on strike for better conditions on  Thursday, slowing the country's ports just ahead of corn and soybean harvests key to world grains markets and the local economy.
"At this time we are not mooring ships, and this will continue until we reach a deal with the port authorities," Omar Suarez, spokesman for the SOMU harbor workers' union, told Reuters.

Russia 2011/12 sugar export seen at record 250,000 t
MOSCOW, March 1(Reuters) - Russia could export a record 250,000 tonnes of sugar in the 2011/12 season thanks to a record harvest which resulted in a surplus on the domestic market, a leading sugar market analyst said.
The Institute for Agricultural Market Studies estimated 180,000 tonnes had already been exported by the end of February.

ICO cuts forecast for 2011/12 global coffee crop
LONDON, March 1 (Reuters) - The International Coffee Organization on Thursday cut its forecast for the global coffee crop in 2011/12 to 128.5 million 60-kg bags, down from a previous estimate of 130.9 million.
The downward revision partly reflected diminished crop outlooks in Vietnam and India where heavy rains are likely to affect output, the ICO said in a monthly update.

Kenya 2012 sugar production forecast to rise 13 pct
NAIROBI, March 1 (Reuters) - Kenya's 2012 sugar production is forecast to rise 13 percent to a potential record high buoyed by expected good weather and bigger factory crushing capacity, the industry regulator said.
The east African nation of 39 million people has an annual sugar deficit of around 200,000 tonnes, which is usually filled by imports from other producers in the region.

Dryness a mixed blessing for Brazil coffee
BRASILIA, March 1 (Reuters) - Brazil's key coffee zones were much drier than usual in  February, helping stop bacterial halo blight disease in its tracks but causing concern that developing coffee beans may not have enough water to swell out to an optimal size.
The larger arabica coffee crop in the world's top grower will begin to be picked from May, and several weeks earlier in robusta regions. It is expected to turn out a large crop, despite weather problems that blighted it early on.

Brent slips to $126 as Saudi supply fears ease
SINGAPORE, March 2 (Reuters) - Brent crude futures slipped to $126, coming off an 11-month high, as fears of a supply disruption from Saudi Arabia eased and the market focused on lower seasonal demand for oil in the coming months.  
"Oil prices have overshot in the short-term, and with warmer temperatures as we move from winter to spring, oil demand could start to fall, starting in March," said Gordon Kwan, head of energy research at Mirae Asset Management in Hong Kong. "Brent could fall back below $120 if Iran doesn't flare up."        

World can replace oil lost to Iran sanctions -US
WASHINGTON, March 1 (Reuters) - Global oil producers appear to have enough spare capacity to make up for Iranian exports curtailed by tough new sanctions, U.S. Energy Secretary Steven Chu said on Thursday.
Chu said it was important that sanctions be used to crimp Iranian oil sales to ensure Tehran does not develop nuclear weapons, despite the release of an Energy Information Administration report this week that showed

Oil highest since 2008 on Saudi pipeline report
NEW YORK, March 1 (Reuters) - Oil surged nearly 5 percent in heavy trading on Thursday, and to its highest since the record run in 2008, as a late report out of Iran of a pipeline fire in top exporter Saudi Arabia triggered a rush of buying.
Iranian media reported an explosion on an unknown oil pipeline in the oil-rich Eastern Province of Saudi Arabia, although it was not possible to verify the report immediately.

Copper eyeing smallest weekly gain in a month
SINGAPORE, March 2 (Reuters) - Copper steadied  , and is headed for its smallest weekly gain in a month, as concerns about slow demand from top consumer China persisted despite data showing its economy is regaining  momentum.
"Copper is a flat story at the moment. Chinese demand used to be the driver, but now it looks like it's a dragger," said Henry Liu, head of commodity research at Mirae Asset Securities in Hong Kong.

China refined copper importers delay shipments - trade
HONG KONG, March 1 (Reuters) - Chinese refined copper importers have delayed some February-March shipments and diverted some arriving shipments to South Korea due to weak demand in top copper consumer China, raising availability in the global market, traders said on Thursday.
Chinese demand has been a source of concern for the global market in recent weeks as it has failed to pick up after the week-long Lunar New Year holiday in late January, making some analysts question the sustainability of copper prices , which have risen above 10 percent so far this year.

China's iron ore imports seen at 730 mln T in 2012-industry ministry
SHANGHAI, March 1 (Reuters) - China, the world's top iron ore buyer, is expected to see import growth for the steelmaking raw material ease this year on weaker steel demand and slower economic growth, the Ministry of Industry and Information Technology (MIIT) said.
But iron ore imports are expected to hit a fresh record in terms of volume, reaching 730 million tonnes this year, after rising 8.2 percent to 686 million tonnes in 2011, the ministry said in a statement on Wednesday.

China daily crude steel output stays low in mid-February
SHANGHAI, March 1 (Reuters) - China's daily crude steel output stood at 1.699 million tonnes from Feb. 11-20, flat from 1.696 million tonnes during the preceding period, the latest data from the China Iron & Steel Association (CISA) showed.  
Daily production rates in the world's largest steel-producing country have been hovering below 1.7 million tonnes since November, after reaching some 2 million tonnes in June amid a construction boom. CISA revised its figures for early-February from 1.705 million tonnes.

COLUMN-China oil, copper imports decouple from PMIs
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
SINGAPORE, March 1 (Reuters) - The health of China's giant manufacturing sector is often cited when talking about the nation's commodity demand, but it appears that imports of crude oil and copper have decoupled from the industrial data.
The release of the two monthly Purchasing Managers' Indexes, one by the government's statistics office and the other by HSBC, is invariably accompanied by lots of talk on whether China's economy is cooling too fast or at just the right pace.

Two Japan aluminium buyers agree $115 Q2 premium-sources
TOKYO, March 1 (Reuters) - Two aluminium buyers in Japan have agreed second-quarter premiums to be paid to producers of $115 per tonne, slightly higher than for the current quarter, while most other Japanese firms are still negotiating for lower premiums, two sources directly involved in the matter said.
The agreed figure is sharply below Rio Tinto Alcan's  initial request for $132, and suggests there is not yet a recovery in Japanese demand that Australian and U.S. aluminium producers have been hoping for to drive a rise in the premium.  

China refined copper importers delay shipments - trade
HONG KONG, March 1 (Reuters) - Chinese refined copper importers have delayed some February-March shipments and diverted some arriving shipments to South Korea due to weak demand in top copper consumer China, raising availability in the global market, traders said on Thursday.
Chinese demand has been a source of concern for the global market in recent weeks as it has failed to pick up after the week-long Lunar New Year holiday in late January, making some analysts question the sustainability of copper prices , which have risen above 10 percent so far this year.

China's iron ore imports seen at 730 mln T in 2012-industry ministry
SHANGHAI, March 1 (Reuters) - China, the world's top iron ore buyer, is expected to see import growth for the steelmaking raw material ease this year on weaker steel demand and slower economic growth, the Ministry of Industry and Information Technology (MIIT) said.
But iron ore imports are expected to hit a fresh record in terms of volume, reaching 730 million tonnes this year, after rising 8.2 percent to 686 million tonnes in 2011, the ministry said in a statement on Wednesday.

Gold inches up as buyers trickle back after selloff
SINGAPORE, March 2 (Reuters) - Gold edged higher as buyers slowly returned to the market, lured by Wednesday's plunge of 5 percent, although bullion is still looking at its worst week since December.
"The broader macro backdrop remains gold-favourable, given the negative interest rate environment, longer-term inflationary concerns and lingering sovereign debt uncertainties," Barclays Capital said in a research note.

METALS-Copper eyeing smallest weekly gain in a month
SINGAPORE, March 2 (Reuters) - Copper steadied on Friday, and is headed for its smallest weekly gain in a month, as concerns about slow demand from top consumer China persisted despite data showing its economy is regaining  momentum.
The industrial metal has gained nearly 14 percent so far this year benefitting, like other risk assets, from increased liquidity across markets as countries ease credit conditions to spur economic growth.

PRECIOUS-Gold inches up as buyers trickle back after selloff
SINGAPORE, March 2 (Reuters) - Gold edged higher on Friday as buyers slowly returned to the market, lured by Wednesday's plunge of 5 percent, although bullion is still looking at its worst week since December.
U.S. Federal Reserve Chairman Ben Bernanke's lack of a reference to further quantitative easing at congressional testimony on Wednesday sparked a heavy sell-off in bullion, sending the metal to a one-month low short of $1,700.

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