Oil prices under pressure from Euro zone debt concerns
PERTH, Dec 16 (Reuters) - Oil prices were steady to lower as the prospect of a downgrade to Spain's sovereign credit rating sparked euro-zone debt concerns, out weighing positive U.S. economic data.
"Any positive data that comes out of the U.S. is sidetracked by negative data coming out of the Euro zone," David Taylor, an analyst at CMC Markets in Sydney.
Soy ticks higher; wheat steadies after gains
SINGAPORE, Dec 16 (Reuters) - U.S. soybean futures edged up while corn and wheat were little changed in hushed Asian trading on a dearth of fresh leads and a steadier dollar.
"I'm looking for the dollar to remain relatively well bid and hopefully that would be a good thing because that will take some heat out of the grain market," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.
China 2010 corn output revised up to record -CNGOIC
BEIJING, Dec 16 (Reuters) - China's corn output in 2010 was estimated at a record 172.5 million tonnes, a 5.2 percent increase over last year, the latest estimate by the China National Grain and Oils Information Centre (CNGOIC) showed.
The higher output would leave China, the world's second-largest consumer, with a surplus of 7.5 million tonnes next year based on median consumption figure estimated by several institutions which could mean that China may not import large volumes of corn from abroad.
Argentina raises wheat harvest, sowings forecast
BUENOS AIRES, Dec 15 (Reuters) - Argentina's 2010/11 wheat harvest is expected to come in at 13 million tonnes, higher than previously expected due to good yields and a bigger sowing area, the Agriculture Ministry said on Wednesday.
The ministry had previously estimated wheat output at 12.5 million tonnes.
OIL: Oil prices lower as Spain debt concerns weigh
PERTH, Dec 16 (Reuters) - Oil prices dipped on Thursday as concerns about Spain's sovereign debt rating outweighed data showing a much larger than expected drop in U.S. crude inventories.
Ratings agency Moody's put Spain's debt on review for a possible downgrade on Wednesday, highlighting concerns over a funding crunch next year and sending bank shares sliding. The ratings agency said it did not expect Madrid to have to follow
Greece and Ireland into taking a European Union bailout, but added that it could not rule out that scenario.
COMMODITY MARKETS: Oil up on stockpiles; exports, weather drive grains
NEW YORK, Dec 15 (Reuters) - A sharp drop in U.S. crude stockpiles lifted oil prices and strong exports and weather woes boosted wheat and soy markets, but commodities' gains were limited on Wednesday by a stronger dollar.
The dollar's surge against the euro after Moody's said it may downgrade Spain's debt rating led to a selloff in gold and copper, forcing them to retreat from recent record highs. Investors typically like commodities when the dollar is down as hard assets then become a hedge against the currency and inflation.
GLOBAL MARKETS: Euro weak on Spain credit warning, stocks drop
NEW YORK, Dec 15 (Reuters) - Prospects for a credit downgrade in Spain, combined with upbeat U.S. economic data, led to a sharp downturn for the euro versus the U.S. dollar on Wednesday, while Wall Street shed gains in a late sell-off.
"We had a lot of very positive data today, but we still have persistent euro-zone concerns, which is creating this tussle in the market," said Judy Moses, a San Francisco-based portfolio manager at Evercore Wealth Management.
Agrium To Sell Commodity-Management Assets To Cargill (Source: CME)
Agrium Inc. has reached a deal to sell a majority of the AWB Ltd.'s Australian commodity-management business to Cargill Inc., which gains a leading position in one of the world's largest wheat-export markets. Agrium, a Canadian fertilizer and pesticide company, completed a A$1.24 billion purchase of Australian wheat exporter AWB earlier this month. As part of the acquisition, Agrium had said it was looking at options for the AWB's grain-handling and trading business. Agrium estimates it will receive A$870 million from the sale. The purchase price will be the net asset value of the acquired businesses at closing plus a premium. The price will be payable in cash, and Cargill will be assuming debt from the acquired business. The deal is likely to make Cargill, a U.S.-based agribusiness giant and among the world's largest private companies, the top wheat exporter in Australia, according to data from last year.
Australia is one of the world's top wheat exporters, with the U.S. Department of Agriculture projecting the country will account for 12% of global wheat exports in the current marketing year. AWB, which is the former Australian Wheat Board, had monopoly control over the nation's wheat exports until the government abolished the system in 2008. Cargill's purchase should push the company's share of the wheat export market well past competitor GrainCorp Ltd., one of Australia's last surviving major agribusinesses. GrainCorp had made what appeared to be a winning bid to purchase AWB in July, but was trumped in August by Agrium. An Australian government report found that AWB accounted for 27% of the bulk wheat exported in 2009. Cargill Australia was the third largest exporter at 12%, followed by GrainCorp at 11%.
Soybeans rise on Argentina crop outlook, wheat flat
SINGAPORE, Dec 15 (Reuters) - U.S. soybean futures rose on Wednesday as dry weather in major producer Argentina raised concern about its crop, while wheat prices steadied after sharp losses in the previous session.
"Higher exports out of the U.S. and some lingering concern about the South American crop are enough to keep the soybean market well supported," said Brett Cooper, senior manager for markets at FCStone Australia.
Moody's warning on Spain hits euro, Fed weighs
LONDON, Dec 15 (Reuters) - A downbeat assessment of the U.S. recovery from the Federal Reserve weighed on global equities on Wednesday while European shares and the euro came under pressure from a threat to downgrade Spain's debt.
"This just focuses attention back on Spain," he said, referring to the rolling euro zone debt crisis.
Droughts, floods, snow and cold hit global commodities
SYDNEY, Dec 15 (Reuters) - Droughts and deluges in Australia, snow in Europe and cold snaps in the United States are pushing up prices of a range of commodities from sugar to heating oil and soybeans.
Australia typically ranks as second in the league of global sugar exporters after Brazil, but rains have forced its top sugar exporter Queensland Sugar Ltd (QSL) to consider buying raw sugar from its South American rival and from Thailand to keep up with its export commitments to sugar buyers.
Japan business mood worsens, BOJ seen holding fire
TOKYO, Dec 15 (Reuters) - Japanese manufacturers' business sentiment worsened for the first time in nearly two years this quarter but the gloom was not as severe as expected, giving the Bank of Japan breathing room before pondering its next move.
But big manufacturers expect conditions to deteriorate over the next three months, the BOJ's closely watched tankan survey showed on Wednesday, keeping up pressure on the central bank to support the fragile economy with its ultra-easy monetary policy.
Fed cautious on recovery, sticks to bond plan
WASHINGTON, Dec 14 (Reuters) - The U.S. Federal Reserve on Tuesday offered only a cautious nod to the economy's improving prospects as it put a spotlight on lofty unemployment and reaffirmed its commitment to buy $600 billion in bonds.
The Fed noted household spending was increasing moderately and characterized the U.S. expansion as "continuing," a modest upgrade from its November description of the recovery as "slow."
China warns of power and energy shortages this winter
SHANGHAI, Dec 15 (Reuters) - Some parts of China could face an intermittent shortage of crucial coal, oil, power or gas supplies crucial for heating during the winter months, China's top economic planning body said in a statement on Wednesday.
Most of China's resource production bases, including coal and and oil, are either concentrated in the northern or western provinces, away from the key demand areas located in the southern and eastern region, such as Shanghai and Guangdong.
PRECIOUS-Gold slides below $1,390/oz as dollar firms
LONDON, Dec 15 (Reuters) - Gold eased below $1,390 an ounce in Europe on Wednesday as the dollar rose broadly, with the euro coming under selling pressure as ratings agency Moody's put Spain's AA1 rating on review for a possible downgrade.
Underlying demand for the metal as a haven from risk was, however, preventing a larger correction, analysts said.
FOREX-Spain rating warning hits euro, buoys Swiss franc
LONDON, Dec 15 (Reuters) - The euro fell against the dollar and hit a record low versus the Swiss franc on Wednesday after Moody's said it may downgrade Spain's debt rating, refocusing attention on contagion risks from the euro zone crisis.
The Swiss currency gained as worries about debt problems in some European countries encouraged investors to reduce exposure to riskier euro zone assets and seek safer alternatives.
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