Investors sell stocks, buy gold on US debt crisis
SINGAPORE, July 25 (Reuters) - Stocks fell while the Swiss franc rose and gold hit a record high on Monday as hopes for a political deal to avert a U.S. default began to fade, though investors were mostly seeking to protect their portfolios with no signs of panic selling.
"Despite the ever-frustrating horse-wrangling between the Democrats and Republicans, which could result in a downgrade of the U.S. government debt ranking, I still believe that some kind of temporary deal will be struck in the last minute," said Khiem Do, head of Asian Multi-Asset with Baring Asset Management in Hong Kong.
Food inflation in focus amid lofty crop price outlook
CHICAGO, July 25 (Reuters) - Grain prices will likely remain at elevated levels at the end of this year, a Reuters Poll showed, providing little relief to food prices while continuing to challenge policymakers battling to tamp down inflation.
Many analysts contend that the era of cheap food may well be over as rising crop production struggles to keep pace with soaring global demand, particularly from the mushrooming middle class populations of developing nations like China and India.
U.S. corn, wheat post falls on debt talks, forecast rain
SYDNEY, July 25 (Reuters) - U.S. corn futures fell two percent on Monday, while soybean and wheat futures fell around one percent, hurt by forecasts for rain this week in the heat-stricken U.S. Midwest and by concern over a seeming stalemate in U.S. debt talks.
"We're down across most of the risk assets today with oil being lower and that in turn is pushing corn and wheat lower while soybeans are also a bit weaker," said Luke Mathews, an agricultural commodities strategist at Commonwealth Bank of Australia.
Guatemala cuts rates on loans to help coffee farms
GUATEMALA CITY, July 22 (Reuters) - Guatemala is offering low-interest loans to coffee farmers to renew aging coffee trees and cushion farmers from lower coffee prices by promoting investment in plantations.
A special government fund for coffee farmers administered by the national coffee association Anacafe is cutting interest rates to 6.5 percent for small producers and 7.5 percent for large farms, Anacafe's president told a coffee conference in Guatemala this week.
Demand, India to dominate cotton market in 2011/12
NEW YORK, July 22 (Reuters) - Demand for cotton, which tumbled sharply after the market's record rally to over $2/lb this spring, and Indian cotton exports will dictate fiber prices in the 2011/12 season (August/July), the chief executive of the world's biggest cotton merchant said Friday.
Joe Nicosia, president and chief executive of Allenberg Cotton Co, told the Ag Market conference of cotton industry analysts there had been a "large shift" into polyester in Asia, the leading consumer of cotton.
Europe coffee: Robusta trade tough, sales low
HAMBURG, July 22 (Reuters) - A week of low sales by Vietnam and Indonesia hindered robusta trade in Europe's cash coffee market this week, and robusta price differentials remained unusually high, dealers said on Friday.
"Vietnamese sellers ignored the fall in London futures and kept their prices high this week," one trader said. "Roaster demand for Indonesian coffee was unmet because of high prices."
Indonesia importing 500,000T Vietnam rice to bolster stocks
HANOI/JAKARTA, July 22 (Reuters) - Indonesia will sign a major contract to buy 500,000 tonnes of Vietnamese rice and is monitoring domestic output for further imports, state procurement agency Bulog said on Friday, in a move to maintain healthy stockpile and cool food prices.
But the deal has pushed up domestic prices in Vietnam during the peak harvest period, which would keep inflation at a high level, traders in Ho Chi Minh City said.
Oil slips $1 on concerns U.S. default may cut demand
SINGAPORE, July 25 (Reuters) - Crude slipped more than $1 on Monday as investors exited riskier assets on concerns a default by the U.S. may derail growth in the economy and pare oil demand in the world's biggest consumer.
"The most significant influence on the oil market is the concern that failing to raise the debt ceiling would mean the U.S. could either default or have to cut spending on a variety of social services," said Ben Westmore, a commodities economist at the National Australian Bank.
U.S. coal use up 4 pct from previous week-Genscape
HOUSTON, July 22 (Reuters) - U.S. coal consumption rose 4 percent in the past week, Genscape said on Friday, as hot weather drove demand for cooling.
But use of coal for the week ended Thursday fell 1 percent from the same week of 2010, the power industry data monitor said, as coal-to-gas switching increased.
U.S. coal use up 4 pct from previous week-Genscape
HOUSTON, July 22 (Reuters) - U.S. coal consumption rose 4 percent in the past week, Genscape said on Friday, as hot weather drove demand for cooling.
But use of coal for the week ended Thursday fell 1 percent from the same week of 2010, the power industry data monitor said, as coal-to-gas switching increased.
LME copper dips on U.S. debt deadlock; supply risks aid
SINGAPORE, July 25 (Reuters) - London copper edged lower on Monday as investors worried about a looming U.S. debt default with no sign of a deal among lawmakers to avert it, although supply risks due to a strike at the world's top copper mine capped losses.
"Copper is consolidating at current levels. Consumption isn't particularly active," said Zhou Jie, analyst at Shanghai CIFCO Futures.
LME copper dips on U.S. debt deadlock; supply risks aid
SINGAPORE, July 25 (Reuters) - London copper edged lower on Monday as investors worried about a looming U.S. debt default with no sign of a deal among lawmakers to avert it, although supply risks due to a strike at the world's top copper mine capped losses.
"Copper is consolidating at current levels. Consumption isn't particularly active," said Zhou Jie, analyst at Shanghai CIFCO Futures.
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