Wednesday, August 8, 2012

20120808 1652 Global Markets @ Commodities Related News.

GLOBAL MARKETS: Asian shares extended gains to a third straight session, reaching a three-month high, as investors continued to bet that policymakers will soon take decisive action to address the euro zone fiscal crisis and declining global growth. European stocks were seen opening lower, pausing after a sharp two-week rally, but the declines could be limited by comments by a top Federal Reserve that are fuelling expectations of a third round of quantitative easing to boost the fragile U.S. economy. U.S. stocks rose for a third straight day on Tuesday, pushing the S&P above 1,400 for the first time since early May, on growing optimism the European Central Bank would act soon to contain the euro zone's debt crisis.

FOREX: The euro held steady against the dollar, supported by persistent hopes for further action by the European Central Bank to lower the borrowing costs of Spain and Italy.

FOREX-Euro steady, supported by hopes of ECB action
The euro held steady against the dollar, supported by persistent hopes for further action by the European Central Bank to lower the borrowing costs of Spain and Italy.    
"Two-year yields have jumped in recent days. I think as long as U.S. yields move higher then of course dollar/yen will be under upward pressure," said Mitul Kotecha, head of global foreign exchange strategy for Credit Agricole in Hong Kong.
Still, the impetus for a further rise in Treasury yields and dollar/yen may be lacking over the next few days, when U.S. economic data releases will be relatively light, he said.
"For bond yields to move higher you need to see some credible signs of U.S. recovery...But the lack of data in the coming days suggests it's not going to happen," Kotecha added.

Fed should buy as many bonds as necessary - Rosengren
A top Federal Reserve official said on Tuesday the Federal Reserve should launch another bond-buying program of whatever size and duration is necessary to get the economy back on its feet, signaling support from some U.S. policymakers for aggressive steps to boost the flagging recovery.

U.S. consumer credit posts tepid growth in June
U.S. consumer credit posted its weakest growth in eight months in June as Americans reduced credit card debt, a potentially negative sign for an economy that has struggled to create jobs.

PREVIEW-China commodities imports seen weakening further in July
SHANGHAI/HONG KONG, Aug 8 (Reuters) - China's imports crude oil, copper, coal and iron ore are expected to drop for the second consecutive month in July as a stuttering economy and high stockpiles keep buyers at bay.
China is the world's biggest consumer of commodities, and last month saw global iron ore prices tumbling 13 percent and thermal coal prices hitting a 30-month low, declines that would normally have encouraged restocking.

Dwindling U.S. crops add to global inflation challenge
The U.S. government is expected this week to slash another 15 percent off its estimate of this year's drought-decimated corn crop, likely adding to growing angst in nations like China and India that are fighting to tamp down inflation.

GRAINS: U.S. soybeans firmed, rebounding after two consecutive session of losses as traders locked in profit after further rains were forecast for the U.S. Midwest, aiding the quality of new crops.

OIL: Brent crude dipped coming off a 12-week top hit in the previous session, although worries about falling North Sea output and hopes for more stimulus measures from both sides of the Atlantic kept prices above $111 per barrel.

Euro Coal-Prices rally to $95/T, highest since April
LONDON, Aug 7 (Reuters) - Physical European prompt coal prices rallied by $1.00 a tonne on Tuesday to $95, the highest level since April 19, boosted by Colombian force majeures, utilities and traders said.
South African FOB prices rose more steeply by $4 to around $92, the highest since late June, but no fresh trades were reported.

China nominates full contract amount of Iran oil in Aug -sources
BEIJING, Aug 7 (Reuters) - China, Iran's top oil customer and trading partner, has nominated full contract volumes of Iranian crude for loading this month, steady with July, trade sources said, after imports from the Middle Eastern country hit an ll-month high in June.
China is expected to load just over 16 million barrels of Iranian oil in August, the second month that it is using the vessels of National Iranian Tanker Co. (NITC) to deliver oil to its ports to get around a European Union insurance ban.

EIA trims U.S. natural gas production, consumption growth outlook
The U.S. Energy Information Administration on Tuesday slightly trimmed its estimate for domestic natural gas production growth in 2012, but still expects output this year to be up 3.8 percent from 2011's record levels.

Miners face cold reception from lenders at key Australian meet
Small mining and exploration companies are facing a less-than-receptive contingent of lenders and financiers at an annual gathering in the Australian outback designed to bring the two sides together.

COLUMN-Indonesia tries to control the tin price (again)
--- Andy Home is a Reuters columnist. The opinions expressed are his own---
LONDON, Aug 7 (Reuters) - Indonesia's largest tin producer PT Timah  is limiting spot sales of the soldering metal in response to a price  that is currently floundering around one-year lows.
And if you're experiencing a certain sense of déjà vu with that statement, that's perfectly understandable because it did the same almost a year ago, the last time benchmark London Metal Exchange (LME) prices lurched down to the $17,000 per tonne level.

Chinese banks sue more than 20 steel traders for loan defaults
SHANGHAI, Aug 7 (Reuters) - Chinese banks are suing more than 20 small and medium-sized steel traders based in Shanghai for defaulting on their loans, in the latest sign that the sector is buckling under slumping prices and poor demand.
China Construction Bank  , China Minsheng Banking Corp  , Bank of Communications Co Ltd  and China Everbright Bank  are among the banks that have taken their debtors to court as they sought to recover the millions owed, according to court documents.

Iron Ore-Shanghai rebar falls for 4th day in 6, ore near 2012 low
SINGAPORE, Aug 8 (Reuters) - China's steel futures slipped for a fourth day in six, dogged by sluggish demand that is keeping pressure on spot prices of raw material iron ore, with both commodities likely to see more weakness before any recovery begins.
Down more than 16 percent this year, iron ore is wallowing near its cheapest in 2-1/2 years as Chinese steel mills, the world's biggest buyers of iron ore, limit spot purchases until steel prices rebound significantly.

Chile July copper export revenue falls to $3.281 bln
SANTIAGO, Aug 7 (Reuters) - Chile's copper export revenue  totaled $3.281 billion in July, down compared to $3.827 billion in June, the central bank reported on Tuesday. In July 2011, copper export revenue totaled $3.394 billion.

BASE METALS: London copper slipped after a three-day rally that pushed prices to a one-week high the session before, although hopes of more action to combat Europe's debt crisis continued to buttress the outlook for metal demand.

PRECIOUS METALS: Gold was little changed, after advancing for three straight days on hopes that central banks in Europe and the United States will launch more stimulus measures to help shore up their faltering economies.

METALS-LME copper slips from 1-week high but euro zone hopes support
London copper slipped after a three-day rally that pushed prices to a one-week high the session before, although hopes of more action to combat Europe's debt crisis continued to buttress the outlook for metal demand.
"People are feeling that the U.S. is starting to recover, we're hearing positive talk out of the ECB about long term debt financing, and if they can convince people it's the right action then we'll see some support coming in for commodities," said Jonathan Barratt, chief executive of BarrattBulletin, a Sydney-based commodity research firm.

PRECIOUS-Gold steady, stimulus hopes support
Gold was little changed after climbing for three days, supported by hopes that Europe and the United States would launch more stimulus measures to help shore up their faltering economies.
"Gold is still looking promising in the second half, with the peak physical consumption season on the horizon and more quantitative easing from the U.S. Fed still on the cards," said Li Ning, an analyst at Shanghai CIFCO Futures.

Baltic index falls on sliding panamax rates
Aug 7 (Reuters) - The Baltic Exchange's main sea freight index, used to track rates for ships carrying dry commodities, fell on Tuesday for the 21st straight day, on falling panamax rates.
The main index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, dropped 7 points or 0.83 percent to 836 points.

Asia Tankers-Rates to hover near 2012 lows on ample supplies
SINGAPORE, Aug 7 (Reuters) - Rates for dirty tankers on key Asian freight routes are expected to hover near this year's lows, pressured by the abundant supply of vessels competing for limited Middle East crude cargoes, ship brokers said on Tuesday.
Rates on the benchmark very large crude carrier (VLCC) export route from the Middle East to Japan held steady at W34.34 on Monday, unchanged from a week ago. Rates have struggled to rebound since hitting this year's low of W33.58 on July 19.

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