OIL: Oil up slightly on dollar weakness
SINGAPORE, Dec 17 (Reuters)- U.S. oil prices edged higher on Friday as the dollar fell against the euro following an agreement by European Union leaders to set up a permanent crisis management mechanism.
Brent's premium against U.S. benchmark West Texas Intermediate rose further to a fresh seven-month high at $4.01 at the close on Thursday, from $3.58 the previous session, the highest since May 14.
COMMODITY MARKETS: Markets down broadly as currencies gyrate
NEW YORK, Dec 16 (Reuters) - Commodities ended broadly lower on Thursday as gyrating currency markets prodded investors to take profits in thin volume before the year-end.
"It's also near month-end, quarter-end and year-end and people are looking to take profit as the euro continues to weaken," said Bruce Dunn, vice-president for trading at Auramet Trading in Fort Lee, New Jersey.
GLOBAL MARKETS: EU progress, US growth prospects lifts stocks
NEW YORK, Dec 16 (Reuters) - World stocks ended slightly higher, U.S. bond yields slipped, and the euro was firmer on Thursday after European leaders agreed to change the EU treaty to create a permanent financial safety net.
"Recent events do bode well for positive economic sentiment, said James Barnes, portfolio manager at National Penn Investors Trust Co in Wyomissing, Pennsylvania.
China Professors: China Grain Prices To Rise 4%-5% A Year (Source: CME)
China's grain prices are likely to increase 4% to 5% annually in the next few years, with soaring labor costs as the major reason, while domestic soybean output needs to be improved, China Academy of Science professors said. Grain demand will also rise more quickly than supply, helping push prices higher, Chen Xikang of the CAS's Center for Forecasting Science, said in a recent webcast on China Economy, the news portal of the state-owned Economic Daily newspaper. Chinese are consuming more and more meat and fish as living standards improve, resulting in a huge demand for animal feed, but China's grain output growth is limited by shrinking arable land, he said. "China can increase planted areas of some crops, but the (scope for) farmland expansion is very limited," he said. China had 121.7 million hectares of farmland at the end of 2008, down from 127.1 million in 2001, amid fast urbanization, according to official data.
Yields can be increased with technology such as new crop varieties and chemical fertilizers, but large enough increases to counteract rising demand and shrinking farmland will take time, he said. Development of biofuels globally may add to upward pressure on global grain prices, Wang Shouyang, director of the forecasting center, said during the webcast. He cited a surge in corn prices on the international market due to the fast development of corn-based ethanol sector in recent years. Chen said he expects China's grain output next year to reach 550 million tons, up from this year's 546.4 million tons. He said next year's grain demand will be about 540 million tons. China should do expand soybean planting areas and improve the quality of domestic soybeans by introducing genetically-modified technology, in an effort to reverse a heavy dependence on imports, he said. China's soybean output is estimated at only 15.2 million tons for crop year that ended on Sept. 30, the state-backed China National Grain and Oil Information Center said Thursday. In the January-November period, China imported 49.37 million tons of soybeans, up 31%.
PRECIOUS-Gold supported by physical buying, EU summit eyed
SINGAPORE, Dec 16 (Reuters) - Spot gold edged up on Thursday as physical buying lent support amid a steady dollar after upbeat U.S. data, while investors looked towards a European Union summit that is expected to find solutions for the region's debt crisis for trading cues.
U.S. industrial production rose at its fastest pace in four months in November, implying a self-sustaining recovery is now entrenched, but a mild gain in consumer prices indicated still abundant slack in the economy.
FOREX-Euro edges up before EU summit, dollar pauses
LONDON, Dec 16 (Reuters) - The euro edged higher on Thursday ahead of an EU summit but remained vulnerable on euro zone debt concerns, while the dollar slipped back after a surge in U.S. Treasury yields ebbed.
EU leaders meet in Brussels on Thursday and Friday to try to agree on further action to tackle a year-long debt crisis that has consumed Greece and Ireland and threatens to spread to Portugal and Spain.
Soy ticks higher; wheat slips after gains
SINGAPORE, Dec 16 (Reuters) - U.S. soybean futures edged up on Thursday while wheat retreated after racing to four-month highs in the previous session as investors kept a close tab on the dollar and weather outlook. "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
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 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.But still the surplus may not be enough given that state reserves are at a very low level after more than 44 million tonnes have been sold to the market since last year.
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.
Indonesia sees rubber exports up 7-8 pct in 2011
JAKARTA, Dec 16 (Reuters) - Indonesia's rubber association said on Thursday it saw rubber exports rising 7-8 percent in 2011, in line with its forecast for production growth next year.Indonesia is the world's second largest rubber producer.
Mkts tread water ahead of EU meet, Spain in focus
LONDON, Dec 16 (Reuters) - European markets were little changed in thin trade on Thursday as investors digested a key Spanish debt auction ahead of a summit at which they hope EU leaders will agree fresh steps to tackle the region's debt crisis.
"We don't want Spain to get bailed out. If it does, it sends a big message to investors that if an economy as big as Spain is fragile, then the euro-zone may be a risky place to do business."
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