Wednesday, June 20, 2012

20120620 0937 Global Commodities Related News.

DTN Closing Grain Comments 06/19 14:11 : Weather Rally Continues(Source: CME)
The fire lit under traders at the beginning of the week tied to concerns over U.S. corn and bean production remained strong Tuesday with contracts across the board posting sharp gains. Support came from both commercial and noncommercial traders in the new-crop markets, indicating underlying fundamentals are growing more bullish longer-term.

Pro Farmer: After the Bell Wheat Recap (Source: CME)
Chicago wheat settled mostly 19 1/4 to 21 cents higher while Kansas City wheat finished mostly 17 1/2 to 19 3/4 cents higher, although far-deferred futures at both exchanges posted slightly lesser gains. July Minneapolis wheat posted slight losses, while most other contracts were 11 to 12 cents higher. Futures got plenty of spillover support from strong gains in the corn market and sharp losses in the U.S. dollar index today.

Wheat Market Recap Report (Source: CME)
September Wheat finished up 20 1/4 at 668 3/4, 2 1/4 off the high and 22 1/4 up from the low. December Wheat closed up 20 1/4 at 692 3/4. This was 21 3/4 up from the low and 2 1/2 off the high. July wheat continued its advance today with the July contract trading 19 1/4 higher. European wheat futures extended gains on potentially warm and dry conditions in parts of Russia, which lent support to US markets. The US Dollar traded lower today and stocks rallied. Wheat benefited from a mixture of positive outside markets and spillover support from corn and beans. The market pushed to the highest level since May 31st. September Oats closed up 7 3/4 at 306 3/4. This was 6 1/4 up from the low and 3 3/4 off the high.

Corn Market Recap for 6/19/2012(Source: CME)
September Corn finished up 26 at 563, 5 off the high and 22 1/2 up from the low. December Corn closed up 26 at 560. This was 23 3/4 up from the low and 4 off the high. The corn market continued its rally today with the new crop, December contract trading 27 3/4 higher towards the end of the session. The hot and dry weather forecast for nearly half of the Corn Belt could mean deterioration of yield potential. The US Dollar fell today and stock indices traded higher, helping December corn advance to new, monthly highs. Continued warm and dry weather mixed with positive outside markets could provide further support to the corn market. The market pushed to the highest level since March 21st. September Rice finished up 0.455 at 14.75, equal to the high and equal to the low.

Pro Farmer: After the Bell Corn Recap (Source: CME)
Corn futures closed 13 cents higher in the front-month July contract, with the rest of the market mostly in the upper 20s to 30 1/2 cents higher. Futures slightly trimmed gains in after-hours trade. A combination of weather concerns and dollar weakness bolstered corn futures today. Yesterday's crop condition report showed more deterioration in the corn crop than expected and the near-term forecast is void of any widespread rains to recharge soils.

U.S. corn firms on weather damage, hits one-wk high
SYDNEY, June 19 (Reuters) - U.S. corn rose to a one-week high as the U.S. Department of Agriculture said new-crop quality had been damaged by recent hot, dry weather, prompting concerns that stocks will not be replenished as projected.
"The weather is driving prices today," Lynette Tan, investment analyst at Phillip Futures said. "There has been some weather damage to corn and going into the summer season we will see increasingly dry weather, and this will likely drive up prices."

Australia wheat stocks fall 16 pct as exports climb
SYDNEY, June 19 (Reuters) - Australian wheat stocks at the end of May fell 16 percent from a month earlier to 15.93 million tonnes, the largest monthly draw-down in at least three years, the Australian Bureau of Statistics said on Tuesday,  
The largest draw-down of wheat in bulk storage came from the east coast, dropping 2 million tonnes on the year, while South Australia saw a fall of 1.5 million tonnes.

Canada wins appeal over wheat board monopoly
OTTAWA, June 18 (Reuters) - Canada's Conservative government on Monday won its appeal of a lower court declaration that said it had broken the law in the way it ended the Canadian Wheat Board's grain marketing monopoly, Agriculture Minister Gerry Ritz stated.
The wheat board monopoly is scheduled to end on Aug. 1. Backers of the wheat board are still pursuing a separate court case to try to get the law suspended.

US corn, soybeans keep wilting in hot, dry weather
CHICAGO, June 18 (Reuters) - Hot and dry weather has hurt U.S. corn and soybean crops more than analysts expected, the U.S. Department of Agriculture (USDA) said in its latest weekly report on Mo nday.
The USDA crop progress report said 63 percent of the U.S. corn crop last week was in good-to-excellent condition -- below last week's USDA rating of 66 percent and also below an average of analysts' estimates for 64 percent.

Algeria halts durum, barley imports until year-end
ALGIERS, June 18 (Reuters) - Algeria has halted imports of durum wheat and barley until the end of December this year because of a promising domestic harvest and stock-building, the head of the state grain agency said on Monday.
"We took the decision (to halt imports) in April," Nouredine Kahel, head of the OAIC state grain agency, told reporters on the sidelines of a grain conference.

Monsoon rains pick up, cover almost half of India
NEW DELHI, June 18 (Reuters) - India's annual monsoon rains have covered almost half of the country, showing signs of a pick-up after falling short in the first 15 days of the season, weather officials said on Monday.
The rebound eases concerns about the planting of summer-sown crops such as rice, corn, cane, cotton and soybean in a country that is a leading producer and consumer.

Ivory Coast Cocoa Growers Risk Attacks in Return to Farms (Source: Bloomberg)
Cocoa farmers in western Ivory Coast who fled recent attacks on their villages are beginning to return to the plantations, fearing their beans may be stolen or damaged, according to growers in the area. “I’m afraid of the attacks but I had no choice but to come back to take care of my farm,” said Salam Zongo, a farmer with a four-hectare (9.9-acre) plantation in Saho, a village attacked on June 8. Seven United Nations peacekeepers, one Ivorian soldier and at least 10 civilians were killed in the ambushes. The fighting near Ivory Coast’s border with Liberia is extending a decade of conflict in the world’s top cocoa producer, which started with a mutinous uprising of soldiers in 2002 that left the country divided between a rebel-held north and a government-controlled south. At least 3,000 people were killed in five months of violence that followed a disputed election in November 2010.
The armed group behind this month’s attacks has a base on the Liberian side of the Cavally River that serves as a border between the two countries, according to Losseni Fofana, the army commander in charge of security in western Ivory Coast. The group comprises Ivorian militia members and Liberian mercenaries, he said this week, following a June 17 clash between Ivorian soldiers and Liberian gunmen.

ICE coffee, sugar dip, Spain worries weigh
LONDON, June 19 (Reuters) - Arabica coffee and raw sugar futures on ICE eased, as concerns over Spain eclipsed investors' relief following Greece's vote for pro-bailout parties.
"A bearish target at $1.4630 per lb remains unchanged for New York July coffee , as indicated by its wave pattern and a Fibonacci projection analysis, according to Reuters market analyst Wang Tao."

Vietnam Coffee-Thin domestic supply limits new deals
HANOI, June 19 (Reuters) - Trading on Vietnam's coffee markets slowed this week as exporters failed to secure beans from domestic markets while farmers held back sales as rising prices have not met their expectations, traders said on Tuesday.
Due to difficulties in buying Vietnamese beans in recent weeks, some foreign buyers have shifted their purchase to rival robusta producer Indonesia, where the harvest has been peaking.

El Salvador sees 2012/13 coffee harvest up 14 pct
SAN SALVADOR, June 18 (Reuters) - El Salvador's coffee harvest next season will increase 14 percent over the current season, reaching 1.44 million 60-kg bags, the country's coffee institute, Procafe, said on Monday.
The institute said higher production for the 2012/13 season would be due to next season's higher biennial cycle, favorable working conditions on farms, and rainfall that has contributed to the healthy flowering of coffee trees.

Rain to return to Brazil's sugarcane belt
SAO PAULO, June 18 (Reuters) - A week of rainy weather is headed for Brazil's main cane belt, which will interrupt crushing in the world's largest producer of sugar, local forecaster Somar said on Monday.
Although the moisture will favor young cane that will mature late this year or early next year, the moisture will drag down the level of recoverable sugars, known as ATR, in the crop that is now being harvested.

I.Coast cocoa arrivals seen down, eyes on 2012/13
ABIDJAN/DALOA, June 18 (Reuters) - Cocoa arrivals at ports in Ivory Coast are slightly lagging last year's levels, exporters estimated on Monday, with the quality of beans and prospects of a slow start to next year's crop also hanging over the sector in the world's top grower.
Heavy rains in key growing areas has led to moist beans and the spread of black pod disease, exporters said.

OIL-Brent off 17 month low, euro concerns linger
LONDON, June 19 (Reuters) - Brent crude fell to a near 17 month low below $95 a barrel , hit by the latest twist in the euro zone crisis, but steadied because Spain managed to sell debt, even though its costs soared to their highest since 1997.
"Stop loss liquidation of some long positions was triggered when Brent broke $95.00, compounded by pervading gloominess towards the eurozone," said Mark Thomas, head of Energy Europe at brokerage Marex Spectron.
Spain's short-term borrowing costs soared as investors worried the country, the euro zone's fourth largest economy, will soon be forced to ask for international aid.

Iran to add 1.1 bln litre oil prods storage by 2013
DUBAI, June 19 (Reuters) - Iran plans to increase its oil products storage capacity by 1.1 billion litres (6.9 million barrels) by next March, oil ministry news service Shana said .
Speaking at the opening of a new oil storage facility in Ahwaz in southern Iran, the managing director of the National Iranian Oil Products Distribution Company (NIOPDC) told Shana that new facilities would boost storage for oil products from around 50 days' consumption to 80 days.

Big powers seek progress on day two of Iran talks
MOSCOW, June 19 (Reuters) - Russia said it expected a "reasonable outcome"  from talks between world powers and Iran on Tehran's nuclear programme, after a first day of "intense and tough" talks failed to make headway towards ending a decade-long dispute.  
If the talks in Moscow collapse, financial markets could grow increasingly nervous over the threats of higher oil prices and new conflict in the Middle East.

Indonesia seeks sweet crude for Aug delivery, limits suppliers
SINGAPORE, June 19 (Reuters) - Indonesia is seeking sweet crude for delivery in early August, but has limited its suppliers to national oil companies after a recent presidential decree, trade sources said .
Last month, President Susilo Bambang Yudhoyono ordered state-owned oil firm Pertamina to buy crude and oil products directly from primary sources.

UN sees natural gas a key to forests, helping poor
RIO DE JANEIRO, June 18 (Reuters) - Natural gas, including non-traditional shale gas, should play a major role in cutting greenhouse gases, protecting forests and improving the health and living standards of the world's poor, the co-head of a U.N. sustainable energy program said on Monday.
Without it, the U.N.'s Sustainable Energy for All Initiative will have difficulty meeting goals of ensuring universal energy access, doubling the world's share of renewable energy and doubling the rate of improvement in energy efficiency by 2030, Kandeh Yumkella, co-head of the initiative, told Reuters.

Oil Trades Near Two-Day High on Stimulus Speculation, Iran Talks (Source: Bloomberg)
Oil traded near the highest close in two days amid speculation the Federal Reserve may do more to boost the U.S. economy and after talks with Iran on the Persian Gulf nation’s nuclear program ended without an agreement. Futures were little changed in New York after climbing 0.9 percent yesterday. The Fed is scheduled to release its statement on interest rates and the economy at 12:30 p.m. in Washington after a two-day meeting. Iran and world powers failed to reach a breakthrough after two days of talks in Moscow aimed at alleviating the threat of military strikes on OPEC’s second- biggest oil producer. U.S. crude supplies fell while gasoline stockpiles rose, American Petroleum Institute data showed. Oil for July delivery, which expires today, dropped 5 cents to $83.98 a barrel in electronic trading on the New York Mercantile Exchange at 9:35 a.m. Sydney time. It rose 0.9 percent yesterday to $84.03, the highest close since June 15. The more-actively traded August contract gained 1 cent to $84.36.
Front-month  prices are down 15 percent this year. Brent oil for August settlement decreased 29 cents, or 0.3 percent, to $95.76 a barrel on the London-based ICE Futures Europe exchange yesterday. The front-month price for the European benchmark contract closed at a premium to West Texas Intermediate of $11.41. U.S. crude inventories fell 550,000 barrels last week, according to the API data. An Energy Department report today may show they dropped 1.3 million barrels, according to the median estimate of 11 analysts in a Bloomberg News survey. Gasoline supplies rose 1.1 million compared with a projected gain in the government report of 1 million barrels.

IPad Boom Strains Lithium Supplies After Prices Triple (Source: Bloomberg)
Investors from JPMorgan Chase & Co. to BlackRock Inc. are trying to make money from the exploding popularity of iPads and increasing sales of hybrid cars by investing in producers of lithium for batteries. Prices for the conductive metal, the lightest in the periodic table, have tripled since 2000 in a market now worth $1 billion a year as uses expand in vehicles, ceramics, electronics and lubricants. Apple Inc. (AAPL) and Toyota Motor Corp. (7203), maker of the Prius electric-gasoline car, have few alternatives as they pursue higher performance and mobility, leading Dahlman Rose & Co. analysts to forecast lithium demand will double by 2020. Talison Lithium Ltd. (TLH), whose shares have gained 26 percent in the last month, together with Soc. Quimica & Minera de Chile SA, Rockwood Holdings Inc. and FMC Corp. (FMC), produce almost 95 percent of world supply.
Rio Tinto Group (RIO), the third-biggest mining company, may join the largest suppliers if it goes ahead with a mine in Serbia it says is capable of producing 20 percent of global output of the metal. “There are some companies now that we think are attractive to get a hold of lithium exposure,” Evy Hambro, who manages about $13 billion in mining stocks for BlackRock in London, said in an interview. “We’ve got a small exposure today and we’re looking for some more,” he said without naming any companies.

Mittal Doesn’t See Return to Pre-Crisis Usage ‘Anytime Soon’ (Source: Bloomberg)
ArcelorMittal (MT) Chairman and Chief Executive Officer Lakshmi Mittal said steel demand won’t recover “soon” to levels seen before the financial crisis. ArcelorMittal, the world’s largest steelmaker, is adjusting output to meet customer requirements, he said today in an interview. Mittal, 62, declined to comment on possible closures. “I don’t believe we’ll return to pre-crisis level of demand anytime soon,” he said in New York after speaking at the Steel Success Strategies conference. ArcelorMittal has slumped 43 percent in the past year after steel prices declined and demand dropped in Europe amid the region’s debt crisis. The Luxembourg-based company has shuttered or idled plants in the country and in Belgium, Spain, France in the past nine months. European steel-plant shutdowns are inevitable as the region’s demand in a “normal market” is as much as 160 million metric tons while it has a production capacity of 210 million tons, industry lobby group Eurofer said last week.

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