Wednesday, May 16, 2012

20120516 1622 Global Market & Commodities Related News.

Asian shares fell after efforts to form a new government in Greece collapsed, fuelling fears that a second election in June could precipitate Athens' exit from the euro zone and deepen the bloc's debt crisis. U.S. stocks closed down as uncertainty stemming from the political stalemate in Greece gave investors another reason to be cautious and sellers came out in force late in the session.

U.S. soybeans edged lower, falling for three out of four sessions, while corn lost ground amid a broadbased weakness in financial markets triggered by fears of Greece's exit from the euro zone.

US farmland stays hot at record high prices-Fed surveys
U.S. farmland prices soared to record highs in the first quarter of 2012 fueled by strong crop prices and buoyant farm income, with the pace of sales strongest in the Plains but firm also in the Midwest Corn Belt, according to two Federal Reserve bank surveys released on Tuesday.

FOREX-Greek worries push euro to 4-mth low; more losses eyed
TOKYO, May 16 (Reuters) - The euro hit another four-month low against the dollar on Wednesday and was likely to extend hefty losses sustained so far this month after Greece said it would hold new elections, boosting the risk Athens could exit the euro.
"An entry to the euro zone was supposed to be irrevocable. They tore down the bridge so people wouldn't be able to go back to the other side of river. But the Greeks seem to be starting to try to swim across," said a Japanese bank trader.

ICE defends 22-hour grain cycle, pleased with trade so far
IntercontinentalExchange on Tuesday hit back against critics of its new 22-hour grain trading cycle and said traders will benefit from having futures and options markets open during key U.S. crop reports.

China 2012 corn output seen at record 197.5 mln T, soy down -CNGOIC
China, the world's second largest corn consumer, will reap another record harvest of the grain this year as it planted more acres to meet surging demand at home, while soy output is set to drop again, according to estimates from an official think-tank.

Oil World cuts forecast of EU 2012 rapeseed crop
Hamburg-based oilseeds analysts Oil World said on Tuesday it has again cut its forecast of the European Union's 2012 rapeseed crop because of bad weather, this time by 0.1 million tonnes.

The euro hit a four-month low, coming under renewed pressure a day after Greece called a new election that may hand victory to leftists opposed to the terms of an EU bailout, and raise the risk of the country exiting the euro zone.

U.S. crude stocks seen up, Cushing stocks rise
U.S. commercial crude oil stocks likely rose for the eighth straight time last week as stockpiles at Cushing, Oklahoma, were expected to climb to a new record, an expanded Reuters poll ahead of weekly industry and government reports showed on Tuesday.

Oil was down as a rise in crude stocks in top consumer United States and fears of Greece's exit from the euro zone muddied the outlook for demand growth.

Iron Ore-Shanghai steel falls 4th day, some mills stop buying ore
SINGAPORE, May 16 (Reuters) - China steel futures fell for a fourth day running on Wednesday with a slowing economy denting the demand outlook from the world's biggest consumer and halting producers' buying interest for raw material iron ore.
Spot iron ore dropped to its weakest level since late February and has given up this year's gains to trade down nearly 2 percent year to date, as a slowing Chinese economy threatens to curb steel output further.

London copper fell to a four-month low, extending losses to a fourth consecutive session, as investors continued to shy away from riskier assets with the Greek political malaise threatening to plunge Europe into a deeper financial mess.

Freeport sees Chinese demand boosting copper
May 15 (Reuters) - The head of Freeport-McMoRan Copper & Gold  said on Tuesday that although copper markets were weaker than last year, an expected jump in Chinese consumption should boost investment to find new reserves.
President and Chief Executive Officer Richard Adkerson also told a metals and mining conference that he was concerned about violence around Freeport's vast Grasberg mine in Indonesia. But he was confident the company could resolve issues with Jakarta over moves to limit foreign miners' operations and profits.

METALS-London copper slips to 4-mth low on Greece woes
SINGAPORE, May 16 (Reuters) - London copper fell to a four-month low on Wednesday, extending losses to a fourth consecutive session, as investors continued to shy away from riskier assets with the Greek political malaise threatening to plunge Europe into a deeper financial mess.
"There is more room on the downside for copper in the next few weeks, while we wait for China data to be released in mid-June and any consequential easing acts from the central bank," said Judy Zhu, an analyst at Standard Chartered in Shanghai.

Copper miner Freeport concerned about Indonesia
The head of Freeport-McMoRan Copper & Gold said he was concerned about violence around its vast mine in Indonesia but was confident the company could resolve issues with the Jakarta government over moves to limit foreign miners' operations and profits.

German steelmakers give gloomy outlook
Germany's two biggest steelmakers, ThyssenKrupp and Salzgitter, gave a grim outlook for the rest of the year on Tuesday as the euro zone crisis crimps spending on factories and new equipment.

Gold extended losses to slip to its weakest level since late December after efforts to form a new government in Greece collapsed, prompting investors to cut their exposure to the precious metal.

PRECIOUS-Gold hits 4-1/2 month low on Greece turmoil
SINGAPORE, May 16 (Reuters) - Gold extended losses on Wednesday to slip to its weakest level since late December after efforts to form a new government in Greece collapsed, prompting investors to cut their exposure to the precious metal.
"Everybody is rushing to buy the U.S dollar. A strong dollar is negative for gold for the time being," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong, adding that demand from jewellers was limited due to volatile prices.

Baltic sea index drops on low activity
May 15 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, fell on Tuesday for a fifth day on a lack of activity in both the Atlantic and Pacific basins.
The overall index, which reflects the daily freight market prices for capesize, panamax, supramax and handysize dry bulk transport vessels, fell 2 points to 1,130 points.

No comments: