Oil Trades Below $106 as Europe Debt Concerns Outweigh Middle East Unrest (Source: Bloomberg)
Oil traded below $106 a barrel in New York after failing to breach technical resistance at its 30- month high, while concerns that European nations’ debt may cut demand overshadowed turmoil in Libya and the Middle East.
Corn (Source: CME)
US corn futures close lower on profit-taking ahead of the weekend. Traders took money off the table following a recent rally fueled by talk China had re-entered the market and bought US corn. The USDA seemed to validate the chatter Friday by reporting sales of 1.25M tons to "unknown destinations." Morgan Stanley says, "We believe that today's announcement provides confirmation." Meanwhile, demand could provide renewed support next week as traders say the USDA may announce more export business Monday. CBOT May corn slides 13c to $6.89 1/2 a bushel.
Wheat (Source: CME)
US wheat futures finish mostly lower on pre-weekend profit-taking and spillover pressure from losses in corn. Market participants booked profits after wheat prices surged 3.5% Thursday. Corn's weakness added pressure, as both grains are used for livestock feed, traders say. Wheat had previously felt spillover support from corn, which rallied during the past week on talk on sales to China. CBOT May wheat drops 6 1/4c to $7.33 1/4 a bushel, KCBT May rises 2c to $8.65 3/4, MGE May slips 2 1/4c to $8.81 a bushel.
Cargill To Buy Marico's Sweekar Sunflower Oil Brand (Source: CME)
Food and agricultural products company Cargill said it has agreed to buy Indian consumer goods maker Marico Ltd.'s refined sunflower oil brand, Sweekar, for an undisclosed amount. U.S.-based Cargill said the acquisition strengthens its existing portfolio of edible oil consumer brands. It already sells sunflower oil locally under the NatureFresh and Gemini brands. Cargill's acquisition of the Sweekar brand comes at a time when foreign consumer goods makers are looking to increase their exposure to India, one of the fastest growing economies in the world. The government estimates economic growth will rise to 8.6% this fiscal year ending March 31 from 8.0% last year. U.K.-listed Reckitt Benckiser Group PLC--which sells brands such as Dettol, Durex and Disprin in India--last December agreed to buy privately held Indian company Paras Pharmaceuticals Ltd. Paras sells over-the-counter products such as cold-and-flu remedy D'Cold and Moov pain relief ointment.
Cargill said the acquisition is limited to the Sweekar brand. While Marico has positioned Sweekar as a low-cost edible oil aimed at the mass market, its flagship Saffola brand is targeted at the premium edible oil segment. Gautam Duggad, an analyst at Mumbai-based brokerage Prabhudas Lilladher, said Marico seems to have finally found a buyer for the low-margin Sweekar brand that it has been looking to exit for some time. Marico was not immediately available for comment. "Acquiring the Sweekar brand underscores Cargill's long-term commitment to growing our consumer food business in India," Cargill India Chairman Siraj Chaudhry said in a statement. Lazard India acted as the sole financial advisor for Cargill in the acquisition, the statement added. In 2008 Marico sold its processed foods business under the Sil brand to Denmark's Good Food Group.
Metals demand skewed to downside on Japan -Goldman
LONDON, March 24 (Reuters) - Demand and price risk for industrial metals has now skewed to the downside due to recent developments including Japan's earthquake disaster, and as tighter monetary policy is priced in, Goldman Sachs said on Thursday.
The bank did not revise any of its metals prices from a report released in December.However, it said in a note that a cyclical breakout for copper and zinc, initially seen late this year, may be deferred.
China's LME-linked alumina imports seen down on high prices
HONG KONG, March 25 (Reuters) - Rising LME-linked alumina prices are prompting Chinese smelters to accelerate a shift to cheaper domestic supplies and delay, divert or resell term arrivals, which are expected to decline further after hitting eight-month low in February, traders said on Friday.
LME aluminium prices rose 11 percent last year and touched their highest level since September 2008 at $2,651 on Thursday, supported by brisk demand growth and soaring energy costs. The price stayed at $2,625 a tonne at 0607 GMT on Friday.
Europe copper premiums claw back from 2-year lows
LONDON, March 24 (Reuters) - European premiums for physical copper rose this week, clawing back from two-year lows as traders said demand was perking up and that gains looked set to increase in the traditionally stronger second quarter.
Traders quoted the premium for grade A copper in Rotterdam at $50-60 a tonne.
This premium, paid above the London Metal Exchange (LME) cash contract price , was at $40-70 a tonne last week, its lowest level since the first quarter of 2009 and compared with $95-105 in mid-January.
Asia Steel - China prices dip 1.3 pct but Q2 revival eyed
March 25 (Reuters) - Chinese steel prices fell again this week with most buyers still unwilling to return to the market, but a retreat in stockpile levels could suggest an upturn is around the corner.
"Activity remains relatively low but the stockpile figures are encouraging -- actually it is normal for demand to pick up in the second quarter," said a steel trader based in Beijing.
METALS-Copper steadies, investors eye EU debt crisis
LONDON, March 25 (Reuters) - Copper steadied on Friday as concerns over sovereign debt in Europe and the worsening nuclear crisis in Japan undermined sentiment, but expectations of a supply deficit this year lent support.
"One of the key concerns is the ongoing sovereign debt crisis in Europe. We have already seen some downgrades, and there is speculation that Portugal is going to ask for a bailout," said Credit Agricole analyst Robin Bhar.
PRECIOUS-Gold firms as euro zone debt concerns simmer
LONDON, March 25 (Reuters) - Gold prices firmed on Friday as resurgent worries over euro zone sovereign debt levels and violence in the Middle East and North Africa underpinned the metal's safe-haven appeal.
"There are various macro supports for gold, like (concerns over) euro zone debt levels, which have resurfaced with Portugal, (and) continuing problems in the Middle East, North Africa region," said VM Group analyst Carl Firman.
US wheat, corn bullish on expectations of strong demand
SINGAPORE, March 25 (Reuters) - U.S. wheat and corn , on track for weekly gains of around 3 percent, rose in Asia, while soy also gained but was heading for a slight loss on the week as traders said demand, especially from China, remains strong. "Given strong demand for grains, particularly from China, the buying (is likely) to carry through next week," said Garry Booth, a trader with MF Global Australia.
Indonesia steps up corn imports from India
NEW DELHI, March 25 (Reuters) - Indonesia has stepped up corn imports from India after snapping up a major deal with New Delhi early this week, while Sri Lanka and Nepal are likely to place orders for Indian cargoes.
Traders said Indonesia, trying to secure supplies of some essential food products, has bought an additional 200,000 tonnes of Indian corn after striking a deal to buy 100,000 tonnes in its biggest import contracts with New Delhi in at least two years.
Russia to consider lifting grain export ban Sept-Oct
MOSCOW, March 25 (Reuters) - Russian officials will consider lifting the grain export ban after the size of this year's harvest is known in late September or October, Agriculture Minister Yelena Skrynnik told journalists on Friday.
"We will have to wait for the results of the spring sowing and to have an understanding of the new crop," she said.
Sugar eases as market eyes Brazil crop outlook
ICE raw sugar futures prices lost some ground in early trade following the prior session's strong advance as the market eyed harvest conditions in top grower Brazil. Coffee prices rose early as bullish sentiment on fundamentals began to reassert itself after the recent technically-driven setback.
Indonesia cocoa output seen at 600,000 T in 2011 -assoc
JAKARTA, March 25 (Reuters) - Cocoa output in Indonesia, the world's third-largest cocoa producer, will be flat this year as increased output from new planting offsets the impact of heavy rains, the Indonesian Cocoa Association said on Friday.
Indonesia produced around 600,000 tonnes of cocoa last year, as extreme weather and heavy rain caused by La Nina hit the archipelago, Zulhefi Sikumbang, chairman of an association known as Askindo, told Reuters.
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