20110811 1618 Global Market & Commodities Related News.

US stock futures rise in Asia but Europe will be key
SINGAPORE, Aug 11 (Reuters) - U.S. stock futures rose 1.5 percent on Thursday after a sharp drop in the cash index overnight, limiting Asian share losses, though focus will shift quickly to how European markets hold up to a sovereign debt crisis that has spread to its banking system.
"The market is in a bit of heat-seeking missile mode looking for vulnerabilities around the world, and Europe is obviously in its sights at this point in time," said Grant Turley, senior strategist at ANZ in Sydney.

Corn, soy rise; wheat steady ahead of USDA report
SINGAPORE, Aug 11 (Reuters) - Chicago corn and soybean futures rose on Thursday, while wheat was steady following a 2 percent rally in the last session as the market awaited a key U.S. government report, which is expected to be bullish on grains.
"My view is that we are going to see some corn yield damage which is going to tighten the crop balance even more. That will be supportive for the prices," said Abah Ofon, an analyst at Standard Chartered Bank in Singapore.

World cocoa surplus 325,000 tonnes this season-ICCO
ABIDJAN, Aug 10 (Reuters) - Better than expected cocoa production in West Africa will boost global output to 4.2 million tonnes in the 2010/11 season, creating a surplus of 325,000 tonnes, the International Cocoa Organisation (ICCO) said on Wednesday.
That figure was up from an estimate last month of 187,000 tonnes.
In a Reuters interview during a visit to Ivory Coast, ICCO executive director Jean-Marc Anga also said bad weather in the past weeks would most likely cause global output to fall to 4 million tonnes in the 2011/12 season, bringing the world back into a deficit.

Colombian coffee farmers fret over main harvest
BOGOTA, Aug 10 (Reuters) - Colombia's coffee growers doubt the main harvest later this year will be enough to meet the upper limit of the country's 2011 output target of 9 to 9.5 million bags after heavy rains battered the country.
Bad weather and a tree renovation program have slashed coffee output in 2009 and 2010, and this year looks to come under historical averages for production in Colombia, the No. 1 producer of high-quality Arabica beans.

Cotton trade says focus on demand before USDA data
NEW YORK, Aug 10 (Reuters) - The U.S. Agriculture Department's monthly supply report should show another cut for the drought-stricken U.S. cotton crop, but traders said Wednesday the focus would be fixed firmly on demand in the 2011/12 season.
In a poll by Thomson Reuters, market participants expected domestic cotton production in 2011/12 (August/July) would be reduced to an average of 15.29 million (480-lb) bales, down 15.5 percent from last season's 18.10 million bales.

Brazil cocoa arrivals down 9 pct from last season
SAO PAULO, Aug 10 (Reuters) - Cocoa deliveries from Brazil's main cocoa state Bahia held steady last week, data from Bahia Commercial Association showed, while production from other states showed a decline that may be only temporary.
The Association said it was having problems gathering arrivals data from the northern state of Para, an area whose output has been growing fast, which may be contributing to the drop in deliveries from other states.

Argentine 2011/12 wheat output seen at 12.5 mln T
BUENOS AIRES, Aug 10 (Reuters) - Argentina's 2011/12 wheat harvest is expected to come in at 12.5 million tonnes, the Rosario Grains Exchange said in its first estimate of the crop for the season.
Argentina is global top wheat exporter and Brazil is its biggest market.
In its monthly estimate, the Rosario exchange slightly raised its wheat area to 4.5 million hectares from 4.47 million previously, due to "excellent crop conditions, which help us foresee a good output."  

French farm body ups wheat crop, quality good
PARIS, Aug 10 (Reuters) - French farm office FranceAgriMer on Wednesday raised its estimate of this year's soft wheat crop as yields were better than feared after a spring drought, and also pointed to signs of reasonable quality for flour-making.
The office increased its outlook for the 2011 soft wheat crop to about 33.3 million tonnes, up from 32 million forecast in July, as it raised its average yield projection to 6.6 tonnes a hectare from 6.4 tonnes previously.

China July soy imports climb 24 pct
SHANGHAI, Aug 10 (Reuters) - China's soybean imports rose by nearly a quarter to an eight-month high in July on improving processor margins and higher demand, triggered by measures taken by the world's biggest soy buyer to boost pork supplies.
While China's soybean imports climbed in July, the global market is well supplied on higher output from South America this year and there are expectations of a bumper output in the U.S., the world biggest exporter.

World cocoa surplus 325,000 tonnes this season-ICCO
ABIDJAN, Aug 10 (Reuters) - Better-than-expected cocoa production in West Africa will boost global output to 4.2 million tonnes in the 2010/11 season, creating a surplus of 325,000 tonnes, the International Cocoa Organisation (ICCO) said on Wednesday.
That figure was up from an estimate last month of 187,000 tonnes.
In a Reuters interview during a visit to Ivory Coast, ICCO executive director Jean-Marc Anga also said bad weather in the past weeks would most likely cause global output to fall back below 4 million tonnes in the 2011/12 season, bringing the world back into a deficit.

Brent slips on demand worries as Europe crisis spreads
SINGAPORE, Aug 11 (Reuters) - Brent slipped on Thursday, reversing the previous session's gain of 4 percent, on worries over demand as the European debt crisis  spilled in to France amid a weaker economic outlook for the United States.
"It all appears to be about confidence," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.

EU hits Libyan oil firm al-Sharara with sanctions
BRUSSELS, Aug 10 (Reuters) - The European Union added a Libyan oil firm and government department to a sanctions blacklist on Wednesday, an EU diplomat said, raising pressure on Muammar Gaddafi in his conflict with Western-backed rebels.
The decision approved by the 27 EU member states freezes assets in the European Union of the al-Sharara oil company and Libya's Organisation for Administrative Affairs and bars EU firms from doing business with them. "It's gone through," the diplomat said, speaking on condition of anonymity.

Oil demand growth could stall in 2012 - IEA
LONDON, Aug 10 (Reuters) - Global economic slowdown may stifle oil demand growth next year, the West's energy watchdog said on Wednesday, while warning that tightening supplies could still spur yet more oil price volatility.
The International Energy Agency, adviser to industrialised nations on energy policy, said that although it had not made big changes to its oil demand growth estimates for 2011 or 2012, its predictions were now at the mercy of the global economy's performance in the months to come.

OPEC may meet if price worries members-Iran governor
TEHRAN, Aug 10 (Reuters) - OPEC ministers could hold an emergency meeting if its members start to feel anxious about falling crude prices, Iran's OPEC governor said on Wednesday.
"If oil prices reach a worrying level and members get worried, there is a possibility for negotiation and holding an emergency meeting," Mohammad Ali Khatibi told Iran's official news agency IRNA.

LME copper up on stronger yuan, China trade data
SHANGHAI, Aug 11 (Reuters) - LME copper rose on Wednesday after another equities selloff overnight, as investors picked up commodities, spurred by a stronger yuan and China's strong July trade figures.  
"This move suggests that China feels confident about its economy and about world growth to allow its currency to appreciate and therefore relying less on the export sector and allowing its economy to keep on growing," said Citigroup analyst David Thurtell.

Brazil steel mills' outlook weak, but iron strong
SAO PAULO, Aug 10 (Reuters) - Brazilian steel mills are going through a peculiar and worrying moment: Mining iron ore is making more for them than producing slabs and rods.
And the situation may persist for quite a while longer, causing more stress for investors, who have dumped shares in the sector this year.

Japan July aluminium stocks down 11 pct m/m
TOKYO, Aug 11 (Reuters) - Aluminium stocks held at three major Japanese ports fell 11 percent in July from a month earlier due to slowing imports, trading house Marubeni Corp  said on Thursday.
Marubeni, which collects data from the key ports of Yokohama, Nagoya and Osaka, said aluminium stocks at the ports came to 203,500 at the end of July, down 25,100 tonnes from 228,600 tonnes at the end of June.

India 2010/11 iron ore exports down 17 pct after revision-trade body
NEW DELHI, Aug 10 (Reuters) - Iron ore exports from India fell 17 percent in the year to March 2011 to 97.6 million tonnes, up from an earlier estimate of 95 million tonnes, on rising costs and slow efforts in southern Karnataka state to resume shipments, a trade body said in a statement on Wednesday.
India, the world's third-largest exporter of the steel-making raw material, exported 117.4 million tonnes in 2009/10, the Federation of Indian Minerals and Industry (FIMI) said.

Kalahari says Husab uranium reserves up 37 pct
LONDON, Aug 10 (Reuters) - Reserve estimates for the Husab uranium project in Namibia have risen 37 percent, Kalahari Minerals  said on Wednesday, the day before its potential Chinese suitor is allowed to return with a revised offer.
AIM-listed Kalahari holds a 43-percent stake in Extract Resources  , owner of the Husab project which is potentially the second-largest uranium mine in the world.

China July copper imports up 9.5 pct, August may fall
HONG KONG, Aug 10 (Reuters) - China's copper imports rose 9.5 percent to a six-month high in July as material purchased during a period of lower prices in May and June arrived at ports, but may decline in August.
Imports were still down 22 percent in the first seven months, suggesting that monetary tightening has slowed demand in the world's top copper consumer, adding to concerns that shaky western economies will knock consumption.

Debt crisis won't hurt copper refiner Aurubis -CEO
HAMBURG, Aug 10 (Reuters) - Europe's largest copper refiner Aurubis  expects no short-term impact on its business from the ongoing sovereign debt crisis, its chief executive said, arguing China's growing appetite will continue unabated.
Global copper demand should remain robust in 2012 as a result, Bernd Drouven told Reuters in an interview on Wednesday, with rising consumption in China compensating for any slowdown in other regions.

China metal imports shine but oil falters
SHANGHAI, Aug 10 (Reuters) - China bought substantially more copper and iron ore in July than June, offering a rosy view of the world's second-largest economy, although surprisingly weak crude imports jarred.
Investors are hoping the economic strength of the world's top commodity buyer will help lift prices pummelled by fears the United States may be recession-bound and by a raging debt crisis in Europe.

Gold eases from record high after CME margin hike
SYDNEY/SINGAPORE, Aug 11 (Reuters) - Gold eased on Thursday from record highs struck earlier in the session after the CME Group raised margins on COMEX gold futures, but turmoil in the global financial markets and fears of slower growth will buoy sentiment.
"We've seen some of it now, but it's difficult to see a great deal of selling, because we are in very, very volatile and uncertain times when markets are moving very violently. Gold has proven too much of an attraction as an alternative investment and the margins may not have as much influence."