20110812 1107 Global Commodities Related News.

Corn (Source: CME)
US corn futures close sharply higher as the USDA makes a deeper-than-expected cut to its output estimate. Supplies are projected to remain tight through the next crop year, which ends Aug. 31, 2012. Yet, it may still be difficult for the market to return to record highs reached in June as high prices are reducing demand for corn, says Sal Gilbertie of the Teucrium Corn Fund. The USDA lowered its estimates for corn exports and domestic use from July. CBOT September corn rises 24 1/2c to $7.02 1/2, 12% below the record high.

Wheat (Source: CME)
US wheat futures finish higher on spillover strength from surging corn prices. The markets should continue to feel support from expectations livestock producers will increasingly feed wheat to animals instead of high-priced corn, Rabobank says. Concerns about tightening supplies of high-quality wheat help lift prices, the bank adds. The USDA, in a monthly report, cut its harvest estimate for the protein-rich spring wheat crop. CBOT September wheat jumps 16 1/4c to $7.01 1/4 a bushel, while KCBT September gains 23c to $8.08 and MGEX September soars 25 1/4c to $8.62 1/2.

Rice (Source: CME)
US rice futures close lower as the USDA raises output expectations in its first survey-based forecast of the year. The agency pegs US production at 188.1M hundredweight, up 0.6% from its July estimate. Global supplies also are projected to increase, with the USDA pegging world inventories at 97.9M tons, up 1.7M from July. Falling rice prices run counter to sharp gains in other grain markets, which rallied on reduced output-and-supply forecasts. CBOT September rice slips 8c to $16.86 1/2 per hundredweight.

Corn, soy rise; wheat steady ahead of USDA report
SINGAPORE, Aug 11 (Reuters) - Chicago corn and soybean futures rose , 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.

Monsanto say Argentine corn crop to surge, helping soy
BUENOS AIRES, Aug 10 (Reuters) - Argentina's corn output will grow strongly over the next five years, helping the grains exporting powerhouse rejuvenate soils depleted by a long boom in soy cultivation, an official at seed giant Monsanto said.
The South American country -- a top provider of soybeans, meal and oil -- needs to expand crop rotation as part of its drive to meet soaring world food demand, said Pablo Ogallar, Monsanto's strategy director for southern Latin America.

Crop outlook improves as India monsoon rains revive sharply
NEW DELHI, Aug 11 (Reuters) - India's monsoon rains were 14 percent above normal in the week to Aug 11, improving sharply from 22 percent below average the week before, the weather office said on Thursday, boosting the outlook for summer crops such cane, cotton and rice.
Rains were well distributed over the oilseed, soybean and rice growing areas of northwest and central India, the sources said, though they were below normal in the cane growing areas of west and north.

French analyst holds EU wheat crop near 130 mln T
PARIS,  Aug 11 (Reuters) - French analyst Strategie Grains on Thursday left little changed its forecast for soft wheat production in the European Union this year, confirming a partial recovery in yields since a spring drought in western countries.
It reduced slightly its wheat crop outlook to 129.9 million tonnes from 130.2 million last month, but as in its previous estimate this showed a 2 percent rise on 2010 output.

USDA to say if big US corn crop shrank in heat wave
WASHINGTON, Aug 11 (Reuters) - Blisteringly hot weather shrank the production potential of the U.S. corn crop from record-setting levels to a size that may barely satisfy red-hot food, feed and fuel demand, analysts said ahead of a key government report.
With the harvest only a few weeks away, analysts expect a corn crop of 13.082 billion bushels, the second-largest on record. Every bushel of it is likely to be consumed by next fall, keeping market prices at near-record levels.

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."  

Czech harvest accelerates, rain still a concern
PRAGUE, Aug 10 (Reuters) - Czech grain harvest has accelerated after delays caused by heavy rain in July, the Agrarian Chamber and the Farm Ministry said on Wednesday.
The Czech Republic was hit by heavy rains in mid July which held up work, and bad weather has continued through the beginning of August although rainfalls have moderated.

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.

Ukraine grain exports fall 30 pct so far 11/12
KIEV, Aug 10 (Reuters) - Ukrainian grain exports were down  by 30 percent to 760,000 tonnes in the first 40 days of the 2011/12 season compared to the same period in 2010/11, Farm Minister Mykola Prysyazhnyuk said on Wednesday.
The exports represent a pick-up from the pace seen in July when shipments were down 81 percent year on year, but were still seen as disappointing by the minister.

Better weather for US corn, some relief for Plains
CHICAGO, Aug 10 (Reuters) - Showers and moderate temperatures will be welcomed by corn and soybean crops in the U.S. for nearly two weeks, and some relief from drought is occurring in the southern Plains, an agricultural meteorlogist said Wednesday.
"We're looking at non-threatening weather for the next week to 10 days, with rains on Friday and Saturday in the Midwest from 0.50 to 0.75 inch and isolated larger amounts," said John Dee, meteorlogist for Global Weather Monitoring.

India Food Ministry Proposes 2 Mln Tons Grain Exports On Diplomatic Basis (Source: CME)
India's food ministry is looking to export up to one million tons of rice and wheat each on a government-to-government basis in an attempt to free up space in overflowing granaries, three government officials said. "We have written to the ministry of external affairs to ascertain the demand for wheat and rice from friendly countries," a food ministry official, who didn't want to be identified, told Dow Jones Newswires. He said grains will be exported from government stocks as and when the Indian government receives a request from any country. The shipments won't be made below the government's cost of procurement and the importer would also have to bear shipment and other transport charges. Each proposal for grain exports on a diplomatic basis will need the approval of a ministerial panel, said another food ministry official, who also asked not to be named.
India has banned the export of wheat and rice for the past three years, but it has allowed small quantities of grain exports for diplomatic considerations. Last month, the government also allowed the export of one million tons of common-grade rice to private traders for the first time since the ban was imposed. India harvested a record wheat output of 85.93 million tons in the crop year ended July as against 80.8 million tons last year. The country's rice production also jumped to 95.32 million tons from 89.09 million tons. The pressure on government stocks is expected to increase in the next two months when the country starts harvesting its summer-sown rice crop, which is expected to top last season's output.

USDA Cuts Forecasts For Corn, Wheat And Soy Production (Source: CME)
Federal forecasts show U.S. farmers will harvest dramatically less grain and soybeans than expected this year, failing to ease high prices and rebuild low global supplies. The U.S. Department of Agriculture in its monthly crop report slashed its outlook for the autumn harvests after damaging heat and dryness took its toll on corn and soybean fields in July, while excessive rains hampered spring wheat plantings. Crop futures surged on the report as U.S. farmers are poised for another boom year. Yet consumers aren't likely to see relief in food prices as the harvest now isn't expected to ease tight supplies and historically high prices. The agency now forecast farmers will produce 12.914 billion bushels of corn this year, down 4.1% from its estimate last month. Although just below record levels, the harvest comes as booming global demand for corn has left supplies historically low.
The USDA cut its forecasts for the soybean harvest by 5.2% to 3.056 billion bushels and reduced its outlook for U.S. wheat production by 1.4% to 2.077 billion bushels. "The long-awaited crop report came out and it was dramatic," wrote analysts at INTL FCStone in a note to clients. This month's crop report for corn and soybean production is closely watched because it is the first for the upcoming crop based on field surveys rather than just statistical trends. The surveys revealed damage from hot, dry weather in July. For the corn crop, the USDA estimated the average U.S. yield for corn at 153 bushels per acre, down 5.7 bushels per acre from last month's projection. The department also lowered its inventory forecast for corn harvested this year to a 16-year low of 714 million bushels, down from last month's prediction of 870 million bushels.
The USDA did say it expects the tight supplies to trim domestic demand and exports, lowering its forecasts for total use by 2.5% to 13.16 billion bushels for the upcoming crop year, which runs from September 2011 to August 2012. Still, the usage number out paces the agency's production estimate. The reduced outlook for corn output leaves supplies as a percentage of usage next year at just 5.4%, close to a record low. Morgan Stanley said even that outlook could be optimistic, as it presumes 150-million bushel reductions in both feed and export demand. "Prices will need to move higher to achieve the USDA's envisioned demand rationing," Morgan Stanley said. The department was criticized heavily last year for overestimating the corn crop in August and then slashing its outlook repeatedly in the fall. The cuts made in the forecast look "proactive" in adjusting its expectations for the crop, said Bill Gentry, analyst for Risk Management Commodities, a brokerage in Indiana.

Rising Cost of Commodities This Year Could Hit Store Shelves In 2012 (Source: CME)
American consumers can expect bigger grocery bills in 2012, even as commodity prices are forecast to fall. The U.S. is expected to churn out more staples like corn, wheat and soy, which would drive commodity prices lower in 2012. However, it takes several months for a commodity such as corn to make its way down the production line and into a box of cereal, so consumers next year will be buying food made from raw materials bought this year, when crop prices reached multiyear highs. Weather problems including frosts, floods and droughts have driven commodity prices this year. Corn futures in Chicago reached a record high near $8 a bushel in June, while wheat almost touched $9 a bushel in February, and arabica coffee futures in New York topped $3 a pound, a 14-year high, in May.
Major food companies like Kraft Foods Inc., Corn Flakes maker Kellogg Co. and General Mills, producer of Yoplait yogurt and Cheerios, already have taken steps such as raising prices or shrinking products to offset higher raw-material costs and are likely to continue doing so next year. In a recent report, the U.S. Department of Agriculture said grocery-store prices will likely rise 3% to 4% in 2012, on par with this year, even though ingredient costs may fall. The biggest increases would likely be in the first half of next year, but prices would most likely ease later in 2012, said USDA economist Richard Volpe. "We're seeing that retailers really have no choice but to start increasing prices in order to restore their profit margins, so we're expecting food prices to continue rising in 2012," he said.
Companies are taking a cautious stance on how consumers will respond to higher prices. Food executives have found it easier to raise prices on items geared toward high-end consumers, who are less price-sensitive than lower-income shoppers.

Asean Plus Three To Finalize Rice Reserve Program By October (Source: CME)
The Association of Southeast Asian Nations expects to finalize a plan to set up emergency rice reserves in coordination with China, Japan and South Korea by October, an official working on the plan said. Transnational grain stockpiles have previously been proposed, but failed to take off due to lack of coordination and conflicting regulatory regimes. Asean first established a rice reserve in 1979, but it was too small to be effective at meeting emergency needs or stabilizing regional prices. Asean Plus Three agriculture ministers will meet in Cambodia in October, where plans for the reserves will finalized, the official said. The official didn't specify the size of the combined stockpiles, collectively called the Asean Plus Three Emergency Rice Reserve, or APTERR, but earlier reports have put it at 700,000-900,000 tons.
Speaking at a food security conference here Wednesday, the director general of the Washington-based International Food Policy Research Institute, Fan Shenggen, said there is a strong need to create such strategic regional grain reserves to control food prices. Regional emergency reserves should be created with contributions from large exporters and located within these countries as well as in importing countries such as Bangladesh, Fan said. Corn prices have doubled and wheat prices are up 70% from an year ago, while rice prices have also risen by $50 to $100 a ton in a month in major exporting countries, Thailand and Vietnam. Consumers in developing economies are hit relatively harder when the prices of staple grains rise sharply, as share of food expenses in their total expenditure is quite high, underscoring the significance of setting up emergency reserves. In developed economies, percentage of income spent on food is comparatively lower.
Santitarn Sathirathai, an analyst with Credit Suisse, said APTERR won't be as effective as it would be with the inclusion of all major rice exporters, given that the U.S., India and Pakistan aren't part of Asean Plus Three. Santitarn said any such strategic reserve should have stringent criteria to determine under what conditions rice can be borrowed--during weather shocks, for instance--and to stipulate how borrowing countries must compensate suppliers for maintenance and storage charges. Traders have expressed skepticism about such initatives, pointing out that in the past, similar efforts for rubber and coffee, though aimed at preventing a declines rather than rise in prices, weren't successful. Recognizing the many obstacles to arrive at a consensus among all ASEAN Plus Three countries, implementation plan of the pilot project is not too ambitious, APTERR said in its website.

Corn, Soybean Futures May Open Higher on U.S. Inventory Cuts, Schultz Says (Source: Bloomberg)
Corn futures may open 20 cents to 25 cents a bushel higher in Chicago after the government said U.S. production will be smaller than expected, reducing reserve inventories, said Mark Schultz, the chief analyst at Northstar Commodity Investment Co. in Minneapolis. Soybean futures may open 25 cents to 30 cents a bushel higher on the Chicago Board of Trade after the government said U.S. farmers will harvest a smaller crop this year, reducing domestic and world inventories, Schultz said in a telephone interview. Wheat futures may open 8 cents to 10 cents a bushel higher as demand for the grain in livestock feed climbs amid shrinking corn production, he said.

Commodities Record Biggest Two-Day Rally Since May on U.S. Jobless Claims (Source: Bloomberg)
Commodities rose, capping the biggest two-day gain in three months, after an unexpected drop in U.S. jobless claims spurred optimism for the U.S. economy, bolstering prospects for crop and industrial-metal demand. The Standard & Poor’s GSCI Index of 24 raw materials rose 2.1 percent to settle at 643.41 at 3:45 p.m. in New York. Metals including lead and zinc led the rally. Corn, wheat and soybeans jumped after the U.S. government forecast smaller crops. Gold tumbled the most in seven weeks. “Things may not be as bad as some people were predicting,” Tom Mangan, who helps oversee $2.8 billion at James Investment Research Inc. in Xenia, Ohio, said in a telephone interview. “The chances of a recession might seem somewhat less today as reflected by stock prices, and, of course, if the economy is going to grow, then demand for commodities will grow.”

Grains Surge as U.S. Cuts Crop Forecasts After Damaging Midwest Heat Wave (Source: Bloomberg)
Corn, soybean and wheat prices surged, signaling higher costs for food and biofuels, after the government said U.S. farmers will harvest smaller crops than forecast last month following a damaging heat wave. The U.S. Department of Agriculture cut its corn-crop estimate by 4.1 percent, reduced the soybean forecast by 5.2 percent, and said spring-wheat production will be 5.2 percent below what it predicted in July. The harvests for all three crops would be less than expected by analysts surveyed by Bloomberg. The U.S. is the biggest exporter of the crops. Parts of the Midwest, the main growing region, were the hottest since 1955 last month. Smaller supplies of corn may increase costs for ethanol refiners such as Poet LLC, Archer Daniels Midland Co. and Valero Energy Corp. (VLO) and meat producers Tyson Foods Inc. (TSN) and Smithfield Foods Inc. (SFD), which buy the grain for feed. The price of corn, the biggest U.S. crop, has jumped 74 percent in the past year.

Sugar, coffee steady as financial markets firm
LONDON, Aug 11 (Reuters) - ICE sugar and coffee futures consolidated in early trade on Thursday, bolstered by a softer dollar as firmer financial markets calmed investor nerves and risk appetite returned, while cocoa dipped as the market struggled to absorb supplies
Cocoa futures on ICE  edged lower in early trading as the market continued to struggle to absorb a large global surplus in 2010/11.
China July cotton imports up 30.9 pct from June -assn
BEIJING, Aug 11 (Reuters) - China imported 157,100 tonnes of cotton in July, up 30.89 percent from the previous month, the China Cotton Association said on Thursday, citing customs data.
The figure was 7 percent lower than the same period of 2010, the association said.

Honduras readies for record coffee harvest, exports
TEGUCIGALPA, Aug 10 (Reuters) - Honduras will cement its place as Central America's biggest coffee producer next year, surpassing neighboring Guatemala for the region's top spot with record exports, as farmers encouraged by high prices plant more.
The national coffee institutive IHCAFE raised its forecast for exports during the 2011/12 harvesting season -- which begins in November -- by 12 percent to 4.6 million 60-kg bags, the institute's president Asterio Reyes told Reuters on Wednesday.

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.

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.

New cold front called harmless to Brazil coffee
BRASILIA, Aug 10 (Reuters) - A cold front brushing past Brazil's southeastern coffee belt could bring some rain but no frost, forecaster Somar predicted Wednesday, and no further cold spells are expected until late August.
The minimum temperature in the coolest coffee area the forecaster monitors in top coffee state Minas Gerais would be around 8 Celsius early Thursday and Friday but warm up again over the weekend -- ruling out any chance of frost.

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.  Traders and analysts said American cotton was hit badly by the worst drought in a century in Texas, the country's top cotton growing state.

Brent above $107 as dollar weakens; econ worry caps gains
SINGAPORE, Aug 11 (Reuters) - Brent crude rose past $107 a barrel on Thursday as the dollar weakened, reversing losses earlier in the day over demand worries as the European debt crisis spilled over to France amid a weaker economic outlook for the United States.   "A lot will depend on how Europe reacts to the debt crisis. The slide in crude stocks and the probability of tropical storms in the U.S. are two fundamental factors supporting the market."

Taiwan Jan crude imports down 15 pct vs. Dec
SINGAPORE, April 7 (Reuters) - Taiwan's January crude imports slipped 15.4 percent to 21.7 million barrels from December 2010 as the country imported less Middle Eastern and African grades, government data showed on Thursday.
Taiwan imported only 965,000 barrels of Iranian crude for January, a sharp fall from December's 2.95 million barrels and below the 2010 monthly average of 1.79 million barrels.

Oil Heads for Third Weekly Drop on Concern Volatility Threatens Recovery (Source: Bloomberg)
Oil fell in New York, heading for a third weekly decline, as concerns that market volatility will derail the economic recovery countered an unexpected drop in jobless claims in the world’s biggest crude-consuming nation. Futures slipped as much as 0.7 percent today, the first decrease in three days. Prices rose yesterday after the number of applications for U.S. unemployment payments slid to a four- month low. Other reports showed consumer confidence fell last week and the trade gap widened in June to the highest since October 2008.
Crude has dropped as low as $75.71 a barrel and climbed as high as $85.97 this week. “The biggest downside risk is that all this volatility cripples confidence,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne, who predicts oil in New York will average $98 a barrel in the third quarter. “There are continued concerns around Europe and sovereign debt and when you overlay that on weaker than expected macro data it can cause people to fear for the worst.”

LME trades hit daily record above 100,000 on Monday
LONDON, Aug 10 (Reuters) - The London Metal Exchange (LME) notched up a record daily number of trades on Monday of more than 100,000, an LME spokeswoman said, when markets reacted after ratings agency Standard and Poor's downgraded the U.S. credit rating.
The spokeswoman said it was the first time in the exchange's history that the number of trades in one day had exceeded five figures.

Stop crackdown on small tin miners -Indonesia industry
JAKARTA, Aug 11 (Reuters) - Indonesian police carrying out an environmental crackdown in the main tin producing region of Bangka island, should stop targeting small-scale miners as it is hindering domestic smelters' supplies, the Indonesian Tin Industry Association said.
Small-scale traditional tin miners in Indonesia, the world's top tin exporter, have slowed mining activity because they fear  being raided by the police, who have been intensifying a crackdown on illegal miners for the past few months.

LME aluminium stocks jump in Vlissingen
LONDON, Aug 10 (Reuters) - The Dutch port of Vlissingen registered the biggest single-day influx of aluminium into London Metal Exchange warehouses ever, data showed on Wednesday, and traders suggested Glencore  was delivering metal partly to free up capital as a storage rent deal ends.
Banks and trading houses have used the metal and its storage as a financial tool to boost profits since the global financial crisis sent interest rates to historic lows, muddying inventory trends that no longer reflect just consumer demand.

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.

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.

China cuts building target for public homes-sources
BEIJING, Aug 10 (Reuters) - China has cut its target for the construction of public homes by 20 percent to 8 million units for next year, two sources said on Wednesday, tempering expectations for builders to support economic growth in coming months.
The roll-back in public housing plans may disappoint investors counting on massive spending in the ambitious building project to power China's economy in the coming months, when softening U.S. and European demand are expected to drag on Chinese exports.

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.

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.

Spending delays wilt Japan's reconstruction steel demand hopes
TOKYO, Aug 11 (Reuters) - Steel demand in Japan will fall short of expectations as political wrangling holds up cash injections after a devastating March 11 earthquake and tsunami, while the construction sector is battling a deep slump, hobbled by a strengthening yen.
Japan's construction steel sector has shrunk nearly in half over the past two decades, and the absence of large additional demand amid weak prices will further dent prospects, speeding a revamp of giants such as Nippon Steel Corp  and JFE .

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.

Lower copper demand growth likely in 2011 -CRU
LONDON, Aug 10 (Reuters) - Lower copper demand growth this year is likely to be the result of consumers sitting on the sidelines waiting to see price stability, Jon Barnes, a principal consultant at UK-based CRU Group told Reuters on Wednesday.
An escalating debt crisis in the United States, the world's largest economy, and the euro zone, is expected to jeopardise global economic growth and demand for industrial metals such as copper used widely in power and construction.

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.

Copper in London Advances For a Second Day After U.S. Jobless Claims Drop (Source: Bloomberg)
Copper in London gained as much as 0.9 percent to $8,963 a metric ton, climbing for the second day, after claims for unemployment-insurance payments unexpectedly fell in the U.S., easing concern that a recovery in the world’s second-largest user of the metal is faltering.

METALS-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.

PRECIOUS-Gold eases from record high after CME margin hike
SYDNEY/SINGAPORE, Aug 11 (Reuters) - Gold eased from the session's record highs after the CME Group raised margins on COMEX gold futures, but turmoil in the global financial markets and fears of slower growth buoyed sentiment.
"Historically when margins are raised significantly it tends to cause a bit of sell-off," said Darren Heathcote, head of trading at Investec Australia.

Gold Falls Most in 7 Weeks on Stocks, Margins (Source: Bloomberg)
Gold futures fell the most in seven weeks in New York as equities rebounded and CME Group Inc. (CME) boosted margins to trade Comex contracts, prompting investor sales after a rally to a record topping $1,800 an ounce. The Standard & Poor’s 500 Index rose as much as 4.5 percent after a drop in U.S. jobless claims. CME Group, owner of the world’s largest futures market, raised margins on gold by 22 percent. The minimum amount of cash that speculators must keep on deposit for an initial account increased to $7,425 on a 100- ounce contract from $6,075. “The strength in equities, coupled with the increase in margins, is pushing gold down,” Matthew Zeman, a strategist at Kingsview Financial in Chicago, said in a telephone interview. “Investors are waiting for a deeper correction before they start buying again.”