Wednesday, March 28, 2012

20120328 1114 Global Market & Commodities Related News.

GLOBAL MARKETS-Shares pause after rally, eye US data for clues
TOKYO, March 28 (Reuters) - Asian shares drifted lower on Wednesday as investors waited for more clues on the state of the U.S. economy, after hopes for further stimulus from the U.S. Federal Reserve strengthened risk appetite and lifted prices the previous session.
"A form of restricted QE remains the most likely outcome, especially as inflationary pressures risk being more than just transitory," he said.

COMMODITIES-Coffee spikes after being oversold; wheat tumbles
NEW YORK, March 27 (Reuters) - Coffee futures jumped on  Tuesday by their most in five months as buyers returned to an oversold market, while wheat fell sharply as investors took profits after last week's run-up.
"I think it was technically oversold and funds came back in," said John Wolthers, trader at Comexim in Santos, a key port town for Brazil's coffee shipments.

OIL-Brent dips; potential oil reserve release weighs
NEW YORK, March 27 (Reuters) - Brent crude prices dipped on Tuesday in tug-of-war trading as market players factored concerns over disrupted supply against the likelihood of a release of U.S. strategic oil reserves to cap rising fuel costs.
"The factors that drove us over $100 are still underpinning the market," said Gene McGillian, analyst for Tradition Energy in Stamford, Connecticut, adding that prices seemed to be consolidating around current levels and could be poised for another move to the upside.

US says working with oil producers to expand production
WASHINGTON, March 27 (Reuters) - The United States is working with Saudi Arabia and other major oil producers to ensure their production is expanded to help mitigate any su pply dis ruptions and tensions cau sed by Western sanctions on Iran, Treasury Secretary Timothy Geithner said on Tuesday.
"The best thing we can do is work with major oil producers to make sure their supply is expanded to meet not just the growing demand from growth but to offset any disruptions," Geithner told a congressional panel.

Iraq's March oil exports target postwar high
LONDON, March 27 (Reuters) - Iraqi oil sales are heading towards a post-war high this month, a senior Iraqi oil official said on Tuesday, as a new Gulf shipping outlet provides a long-awaited boost to export capacity.
"Exports should hit 2.3 million barrels a day this month, and we're doing our best to go beyond that in April," the official said by telephone from Baghdad. The higher rate will be a marked improvement on February's level of 2 million bpd.

NATURAL GAS-US natgas futures end lower, hit 10-year low
NEW YORK, March 27 (Reuters) - U.S. natural gas futures dropped to a new 10-year low on Tuesday as forecasts for mild weather in Northeast and Midwest plus expectations that gas inventories continue to build pressured prices despite signs that the market has tightened.
"The near-term fundamentals continue to point to lackluster demand and production is still strong. That's likely to lead to another injection on Thursday," said Eric Bickel, analyst at Summit Energy in Kentucky.

EURO COAL-Rises with power, gas but outlook bearish
LONDON, March 27 (Reuters) - Prices for prompt physical coal deliveries rose on Tuesday as strengthening power and gas prices lifted coal contracts, but analysts said the coal market remained under downward pressure from ample supply and lower demand at the end of winter.
"U.S. exports of thermal coal more than doubled in 2011 from 15.6 million tonnes (mt) to 31.4 mt as natural gas became more competitive for power generation for virtually all of the year," Deutsche Bank  said in a research note.

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