Thursday, May 17, 2012

20120517 1656 Global Market & Commodities Related News.

Asian shares recovered a bit of the ground lost in the previous day's sell-off, but investors found no reason to bet on risk amid deepening turmoil in Greece and fears of contagion to other stressed euro zone economies. U.S. stocks closed lower on Wednesday, with the S&P 500 logging its fourth straight decline as investors worried about Greece's future as a member of the euro zone.

The euro inched up after plunging to a four-month low the day before, as some Greek banks faced emergency funding needs, compounding fears that the country's exit from the euro may put more pressure on other struggling European nations.

U.S. wheat jumped more than 1 percent, rising for a fourth straight session to its highest since May 1, as concerns over dry weather in top exporters the United States and Russia prompted short covering.

China's corn supply to stay tight in 2012/13 -CNGOIC
China's corn supply is expected to stay tight in 2012/2013 (Oct/Sept), fuelling a continued increase in imports of the grain by the world's second largest consumer and prompting feed millers to boost the use of cheaper wheat, an official think-tank said.

Thai 2012/13 sugar output to surpass record
Thailand, the world's second-biggest exporter of sugar, will produce 10.2 to 10.3 million tonnes of the sweetener in the 2012/13 season, eclipsing the record 10.2 million tonnes it had produced in the 2011/12 season.

Cargill says no change in sugar trading direction
U.S. commodity company Cargill Inc said on Wednesday it has not changed its trading strategy despite its recent absence in the delivery of the sweetener to the raw sugar market, a process it  dominated over more than a decade.

Brent crude slipped to a near four-month low as investors shunned riskier assets following turmoil in Greece and the euro zone, while oil supplies could rise as G8 countries may tap emergency reserves ahead of sanctions on Iran in July.

US Senate to consider new Iran sanctions Thursday
U.S. Senate Democratic leader Harry Reid will ask the chamber to approve a new package of oil and economic sanctions on Thursday aimed at further pressuring Iran to abandon its nuclear program, a Democratic leadership aide told Reuters.

US crude stocks rise for 8th week, products fall-EIA
U.S. crude oil stockpiles jumped for an eighth straight week, while product inventories fell as refineries processed more crude, according to weekly data from the U.S. Energy Information Administration on Wednesday.

Saudis, soaring costs may keep oil above $100
Oil industry executives and bankers are assuming oil prices will stay above $100 a barrel in the year ahead, despite mounting economic worries, as any fall below that level would trigger a cut in Saudi Arabia's output and force closures at high-cost projects around the world.

Commerzbank cuts 2012, 2013 base metals price forecasts
May 16 (Reuters) - Commerzbank cut its 2012 and 2013 price forecasts for base metals on Wednesday on numerous risk factors and high levels of uncertainty in the market.
"We believe the risks currently outweigh the opportunities. In the short term we therefore see further correction potential for all commodities, to which base metals will also not be immune," the bank said in a note to clients.
Indonesia extends export duty to 21 metal ores
JAKARTA, May 16 (Reuters) - Indonesia will apply an export duty of 20 percent to 21 metal ores and concentrates, the finance minister said on Wednesday, extending a list of 14 metals proposed earlier this month to be subject to the duty.
In total 65 mineral categories will be affected by the new regulation, effective immediately, finance minister Agus Martowardojo said. This did not include coal.

London copper edged higher for the first time in five sessions, with a firmer euro aiding its bounce from four-month lows hit in the previous session amid a deepening debt crisis in Europe exacerbated by Greece's political instability.

Gold rose half a percent as bargain hunters resurfaced after prices tumbled to another 4-1/2 month low in the previous session and the euro rebounded, but gains could be limited by fears of a deepening debt crisis in Greece.

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