England Challenges China by Reviving Strategic Mine: Commodities (Source: Bloomberg)
An English mine last used to make armaments to defeat Hitler’s forces will be revived to challenge China’s grip on tungsten, among strategic metals at the heart of a deepening trade dispute with Europe and the U.S. Wolf Minerals Ltd. (WLF) is developing a tungsten mine in Devon, southwest England, 70 years after it was last extracted there. The Hemerdon site is the world’s fourth-largest deposit and can produce about 3.5 percent of global demand for the metal, used to harden steel in ballistic missiles and in drill bits. China provides about 85 percent of worldwide supplies. Tungsten was one of the metals cited when U.S. President Barack Obama filed a complaint to the World Trade Organization on March 13 against Chinese supply curbs. Tungsten is a “critical” raw material, according to the European Union, and the British Geological Survey places it at the top of its supply-risk list of materials needed to maintain the U.K.’s economy and lifestyle.
“A big element of what we are doing is providing a strategic supply to companies outside of China,” Wolf Managing Director Humphrey Hale said in an interview in London. “We’re answering a requirement from the market, which is strategic supply, and prices are at a position where we can make money from that.”
Corn futures were choppy today and closed mid-range to finish with losses of 3/4 to 3 3/4 cents. After several days of aggressively adding long contracts, funds reevaluated positions today and began to move to the sidelines ahead of the extended Easter weekend. The markets are closed on Friday, meaning traders will put their finishing touches on positions tomorrow. (Source: CME)
Corn Market Recap for 4/4/2012 (Source: CME)
Wed 04 Apr 2012 14:21:01 CT
May Corn finished down 1 1/2 at 656 3/4, 7 off the high and 6 up from the low. July Corn closed down 2 1/4 at 650 3/4. This was 5 3/4 up from the low and 7 1/4 off the high. May corn closed slightly lower on the session but still managed to gain on July corn and the move under yesterday's lows failed to attract new selling interest. Outside market forces were clearly negative this morning but talk of strong cash basis levels and the continued lack of producer selling has helped to support the market early today. Active producer fieldwork is keeping producers who have held old crop corn this far away from new cash sales in spite of the recent strong gains and the strong cash basis. South Korea bought a cargo of 59,000 tonnes of US corn and passed on tenders for an additional 140,000 tonnes. Ethanol production for the week ending March 30th averaged 873,000 barrels per day. This is down 1.8% vs. last week and down 3.2% vs. last year. Total Ethanol production for the week was 6.111 million barrels. Corn used in last week's production is estimated at 92.99 million bushels. Corn use needs to average 94.18 million bushels per week to meet this crop year's USDA estimate of 5 billion bushels. Stocks were 22.55 million barrels. This is down 0.3% vs. last week and up 12.4% vs. last year. May Rice finished down 0.025 at 14.905, 0.015 off the high and 0.225 up from the low.
GRAINS-Corn rises for 4th day on shrinking supply; wheat down (Source: CME)
By Thomson Reuters - Wed 04 Apr 2012 11:15:03 CT
U.S. old-crop corn rose for a fourth straight session as tightening global supplies continued to underpin the market, while soybeans lost more ground, easing from seven-month highs. "Right now the situation is pretty much classified as consolidation after some of the strong gains we saw post USDA report," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia in Sydney.
Wheat futures posted a downside day of trade. Chicago wheat settled with losses ranging from 15 1/4 cents to 19 3/4 cents and Kansas City wheat closed mostly around 20 cents lower. Minneapolis wheat saw lighter losses of 4 1/2 to 11 cents in most contracts. Rains in the Central and Southern Plains are beneficial for early-developing winter wheat, which weighed on wheat futures and encouraged fund liquidation. (Source: CME)
Wheat Market Recap Report (Source: CME)
Wed 04 Apr 2012 14:21:01 CT
May Wheat finished down 18 3/4 at 639 1/4, 19 1/2 off the high and 3 3/4 up from the low. July Wheat closed down 19 1/4 at 649 3/4. This was 4 up from the low and 19 3/4 off the high. May wheat closed sharply lower on the session and has given back near half of the gains from the past week as weather and outside market forces helped to spark fairly aggressive selling on the day. July KC wheat was down more than 20 cents by the close. The sharp break in gold and equity markets along with a jump in the US dollar and continued talk of good weather to see improving crops ahead helped to pressure the market early. Rain in the forecast for parts of Europe which have been dry and ideas that the late rally yesterday was overdone and included active fund short-covering from fund traders helped to pressure the market today as well. There are some concerns for the soft red crop in parts of the eastern Corn Belt into the middle of next week with freezing temperatures possible but many traders see little damage and/or the need for the forecast to get colder in order to cause much damage. Spain producers are hoping for good rains in April and May to avoid crop damage from the driest winter in 65 years. May Oats closed down 1 at 335. This was 2 3/4 up from the low and 3 off the high.
Strength in the U.S. dollar index weighed on cotton futures today, with sell stops triggered to extend losses. Cotton closed 228 to 344 points lower in the 2012 contracts, with 2013 contracts down 222 to 242 points. Otherwise, there was little fresh news for the cotton market to digest, which returned focus to the plentiful supply situation. (Source: CME)
Monsanto Raises Forecast as Profit Tops Estimates on Corn (Source: Bloomberg)
Monsanto Co. (MON), the world’s largest seed company, raised its full-year earnings forecast and reported second-quarter profit that exceeded analysts’ estimates as an early U.S. spring boosted corn plantings. Net income rose 19 percent to a $1.21 billion, or $2.24 a share, in the three months through February, from $1.02 billion, or $1.88, a year earlier, St. Louis-based Monsanto said today in a statement. Earnings excluding legal costs were a record $2.28, topping the $2.12 average of 17 analysts’ estimates compiled by Bloomberg. Monsanto said it will earn $3.49 to $3.54 a share in the 12 months through August, a 10-cent increase from the company’s January forecast. The average estimate of 19 analysts was $3.52. Second-quarter revenue rose 15 percent to $4.75 billion.
Chief Executive Officer Hugh Grant said on a conference call that he expects to gain market share in U.S. corn seed for a second year as farmers buy more SmartStax, which has eight genetic changes enabling it to tolerate herbicides and kill bugs. Sales in the quarter benefited from warm U.S. weather that is leading to early orders, Monsanto said. “They have a lot of things going right for them: corn acreage, weather, strong crop prices,” Chris Shaw, an analyst at Monness Crespi Hardt & Co. who recommends selling the shares, said today in a telephone interview. “The largest beat in my model was corn seed.”
GRAINS-Corn rises for 4th day on shrinking supply; wheat down
SINGAPORE, April 4 (Reuters) - U.S. old-crop corn rose for a fourth straight session as tightening global supplies continued to underpin the market, while soybeans lost more ground, easing from seven-month highs.
"Right now the situation is pretty much classified as consolidation after some of the strong gains we saw post USDA report," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia in Sydney.
Australian wheat exports face slowdown after 9-yr peak in Feb
SYDNEY, April 4 (Reuters) - Australian wheat exports hit a nine-year high in February on the back of a record grains crop, data on Wednesday showed, but heavy rains are likely to have weighed on shipments in March.
Australia is the world's fourth largest wheat exporter and is enjoying a bumper 2011/2012 harvest after soaking rains boosted yields.
Vietnam 2012 rice exports may fall to 6.1 mln T
HANOI, April 4 (Reuters) - Vietnam's rice exports this year could drop nearly 14 percent from last year to 6.1 million tonnes as a result of lower demand from key buyers, and rising competition from cheaper grain, the Agriculture Ministry said.
Forecasts of higher output in Indonesia and the Philippines, Vietnam's key rice buyers, and India and Pakistan offering cheaper rice for export, could lead to a drop in Vietnam's rice exports, said a ministry report seen by Reuters on Wednesday.
Canada wheat monopoly backers to appeal court ruling
April 3 (Reuters) - Former directors of the Canadian Wheat Board said on Tuesday they will appeal a Manitoba court ruling that dismissed their motion to suspend the law that ended the CWB's grain monopoly.
The former directors, whom the Canadian government removed from the CWB board after taking control of it in December, want the law suspended until a court can review the law's validity. But Manitoba Judge Shane Perlmutter ruled on Feb. 24 that the directors had not convinced him that there is a serious question to be tried.
Informa raises US corn seedings forecast, trims soy
CHICAGO, April 3 (Reuters) - Informa Economics chief executive Bruce Scherr said on Tuesday that the firm has raised its forecast of U.S. 2012 corn plantings to 96.4 million acres, from 95.5 million in its previous estimate from March 9.
Speaking at a conference in Chicago, Scherr said the firm lowered its forecast of U.S. 2012 soybean plantings to 74.2 million acres, from 75.1 million previously.
Argentine soy, corn output seen lower - Rosario
BUENOS AIRES, April 3 (Reuters) - Argentina's biggest grains exchange slashed its forecast for 2011/12 soy production to 43.1 million tonnes on Tuesday as the extent of drought damage becomes clearer, especially in northern provinces.
Rosario grains exchange said acute damage to crops in Tucuman, Salta, Chaco and Santiago del Estero had led it to cut its previous forecast for production of 44.5 million tonnes.
Cocoa Nears Three-Month Low on Supply Outlook (Source: Bloomberg)
Cocoa fell to the lowest since January on signs of improved crop prospects in Ivory Coast, the world’s top producer. Coffee dropped, and sugar gained. Rainfall in Ivory Coast was “pretty much normal for late March and early April,” and the region will have more showers this week, bolstering the production potential, Paul Markert, a meteorologist at MDA Information Systems Inc. in Gaithersburg, Maryland, said in an e-mail yesterday. The commodity rose 5.2 percent in the first quarter on speculation that dry weather would trim the country’s yields. There’s a “better outlook for Ivory Coast’s mid-crop,” that will be collected from April to September, Judy Ganes- Chase, the president of J. Ganes Consulting in Katonah, New York, said today in an e-mail. “Rains are spreading.”
Cocoa futures for May delivery dropped 2.8 percent to settle at $2,083 a metric ton at 12:05 p.m. on ICE Futures U.S. in New York. Prices have fallen for six straight sessions, the longest slide since Dec. 9. Earlier, the commodity touched $2,060, the lowest since Jan. 9.
S.Africa's 2011/12 sugar output falls to 1.82 mln T
JOHANNESBURG, April 3 (Reuters) - South Africa's 2011/12 sugar output fell to 1.82 million tonnes from 1.91 million tonnes in the previous season, the South African Sugar Association (SASA) said on Tuesday.
Sugarcane crush rose to 16.8 million tonnes from 16.02 million tonnes, the industry association, which represents producers and millers in Africa's biggest economy, said in a statement on its website.
Prices key to Mexico sugar import decision-minister
WASHINGTON, April 3 (Reuters) - The Mexican government is closely watching domestic sugar prices and could allow sugar imports if prices do not fall closer to world levels, Mexico's economy minister said on Tuesday.
"We don't want our consumers to pay a higher price in Mexico," Mexican Economy Minister Bruno Ferrari told Reuters in an interview. "If we don't see the price going down as it is going down around the world, then we will import the sugar."
Vietnam sees 2012 coffee export fall, Indonesia crop shaky
HANOI/SINGAPORE, April 3 (Reuters) - Exports from main robusta producer Vietnam are expected to slip more than 7 percent this year due to limited supplies, while a plunge in last month's exports from rival Indonesia highlights the slow progress of the current harvest.
Falling exports from Vietnam and Indonesia, which account for about 20 percent of global coffee output, could help London robusta futures resist pressure from New York arabica, which has plunged more than 40 percent from the highs hit in May 2011.
Oil Rebounds From Lowest in Seven Weeks on U.S. Economic Outlook (Source: Bloomberg)
Oil rebounded from a seven-week low in New York as investors bet that fuel demand may increase amid signs of a strengthening economy in the U.S., the world’s biggest crude-consuming nation. Futures advanced as much as 0.7 percent for the first gain in three days. Applications for initial jobless benefits probably fell by 4,000 last week to 355,000, according to a Bloomberg News survey before a Labor Department report today. Data tomorrow may show nonfarm payrolls rose in March for a fourth month. Prices slipped yesterday after government figures showed U.S. crude supplies climbed the most since 2008. Oil for May delivery gained as much as 67 cents to $102.14 a barrel in electronic trading on the New York Mercantile Exchange and was at $102.03 at 10:04 a.m. Sydney time. The contract yesterday fell 2.4 percent to $101.47, the lowest close since Feb. 14. Prices are down 1 percent this week, heading for a fourth weekly decline.
Brent oil for May settlement advanced 17 cents, or 0.1 percent, to $122.51 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark contract’s premium to New York-traded West Texas Intermediate slid 40 cents to $20.47 after closing yesterday at the most since Oct. 21.
OIL- Brent slips toward $124 on Fed comments, Saudi supply
SINGAPORE, April 4 (Reuters) - Brent crude extended losses toward $124 a barrel after the U.S. central bank dashed hopes of further economic stimulus, while news that Saudi Arabia is likely to keep output high in the event of a strategic stocks release also weighed.
"The Fed comments had an influence on oil prices, more for the U.S. market than Brent and that's why we saw the Brent/WTI spread widening," said Natalie Robertson, a commodities strategist with ANZ Bank in Melbourne. "Brent was supported by supply side disruptions in the North Sea."
Gold Traders Bearish for First Time in 2012: Commodities (Source: Bloomberg)
Gold traders are bearish for the first time this year after the Federal Reserve signaled it may refrain from more monetary stimulus and jewelers in India, the world’s biggest bullion market, shut to protest a new tax. Fifteen of 29 analysts surveyed by Bloomberg expect prices to decline next week and five were neutral, the highest proportion since Dec. 30. Imports by India may have plunged as much as 81 percent in March and could drop 40 percent in the second quarter, the Bombay Bullion Association said April 2. Indian jewelers, who sell more gold than Australian and U.S. mines produce in a year, were closed yesterday for a 19th day.
Slumping Indian demand comes as prices already erased more than half of this year’s gains on mounting concern the Fed won’t buy more debt. Gold rose about 70 percent as the central bank bought $2.3 trillion of debt in two rounds of quantitative easing ending in June 2011. Policy makers indicated they won’t increase monetary accommodation unless the economy falters, according to minutes of their March 13 meeting released April 3. “Reduced prospects for quantitative easing, if you read that as a strengthening U.S. economy, then it’s bad for gold,” said Carole Ferguson, an analyst at Fairfax IS in London. “Gold has lost some of its safe-haven shine this year. The Indian jewelry market is still very important. If strikes are a longer- term thing it’s more of a worry.”
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