Friday, August 19, 2011

20110819 0957 Global Commodities Related News.

Corn (Source: CME)
US corn futures close lower as traders reduce risk across equity and commodity markets. Pressure from losses in stocks and crude oil "put us in a real hole right off the bat," says Jerry Gidel, analyst for North America Risk Management Services, about corn's slide. Commodity funds reduced their bullish bets after the most-active December corn contract reached a contract high yesterday, traders say. The funds sold an estimated 11,000 contracts, a moderate amount. CBOT December corn ends down 12 1/2c at $7.13 a bushel.

Wheat (Source: CME)
US wheat futures finish lower as global economic jitters drag down equity and commodity markets. Wheat feels additional pressure after Egypt, the world's top buyer of the grain, makes purchases from Russia and Romania in a tender, snubbing the US. Exporters in the Black Sea region continue to undercut US prices. Yet, US prices won't pullback too much due to concerns about damage to the spring wheat crop, traded at MGEX, analysts say. CBOT December wheat slumps 18 3/4c to $7.39 1/4 a bushel, while KCBT December loses 27 1/2c to $8.19 1/2 and MGEX December dips 12c $8.92 3/4.

Rice (Source: CME)
US rice futures end weaker, sliding with the rest of the grains under pressure from external markets. Losses in equities and crude oil set a negative tone for rice, wheat, corn and soy, prompting traders to reduce risk. Yet, the setback isn't expected to extend too far due to global supply concerns, analysts say. CBOT September rice loses 29c to $16.88 1/2 per hundredweight.

US wheat falls from 2-month top; corn, soy ease
SINGAPORE, Aug 18 (Reuters) - U.S. wheat slid nearly 1 percent , ending a seven-session rally, while corn lost more ground on a broad-based weakness in financial markets triggered by concerns over global economic growth.
"It is more of a macro economic selloff than anything else," said Adam Davis, a senior analyst at Merricks Capital, a Melbourne-based fund that invests in agriculture. "Crude oil is off this morning and so are corn and beans."

Australia rain boosts wheat crop, some areas still dry
SYDNEY, Aug 17 (Reuters) - Rains in parts of Australia's New South Wales and Victoria are likely to boost prospects for this year's wheat crop, while the region that produces prime hard wheat is still dry, raising concerns for production of high-protein grains.
Analysts and traders said southern areas of New South Wales and Victoria have received widespread showers which are expected to improve yields for Australian prime and standard varieties of wheat.

US Harvest-Poor corn yields in South, eyes on Midwest
CHICAGO, Aug 17 (Reuters) - Corn yields are down sharply  in Arkansas, Louisiana and Tennessee from a year ago as hot, dry weather stressed the plants during pollination, crop specialists and grain merchants said on Wednesday as the southern U.S. harvest gained steam.
Although these are early indications of the harvest, they are raising concerns among food processors, livestock producers, and biofuel makers since a bumper crop is needed to replenish stocks, which the U.S. Agriculture Department forecast to be the lowest in 16 years next summer.

Ukraine Aug grain exports seen at 1.2 mln T-lobby
KIEV, Aug 17 (Reuters) - Ukrainian grain exports are unlikely to exceed 1.2 million tonnes in August, Ukraine's  Grain Confederation (UAC) industrial lobby said on Wednesday, down from exports of 1.3 million tonnes of grain in August 2010.
Ukraine exported 12.7 million tonnes of grain in the 2010/11 season and the government said the ex-Soviet state could export 21-23 million tonnes this season, building after the previous year's crop was depleted by adverse weather.

Dry areas of US Midwest to see rain by weekend
CHICAGO, Aug 17 (Reuters) - Dry areas of the U.S. Midwest corn and soybean growing region should see some rain soon, and temperatures over the next week will remain moderate, an agricultural meteorologist forecast Wednesday.
"The most important thing I've seen is recent models suggest rain in central Illinois of from 0.50 to 1.00 inch Friday through Sunday," said Drew Lerner, meteorologist with World Weather Inc.

Algeria 2011 grain crop estimated at 4.2 mln T: agmin
ALGIERS, Aug 17 (Reuters) - Algeria's grain harvest is expected to be 4.2 million tonnes this year, down from 4.5 million tonnes a year ago because of a drought in some areas, an agriculture ministry official told Reuters on Wednesday.
The final figures for the grain harvest are expected to be released by the end of this month, said the official, who did want to be identified because he is not authorised to speak to the media.

Indian states seek more rice exports-food min
NEW DELHI, Aug 17 (Reuters) - Several Indian states have asked the government to allow more rice exports, Food Minister K.V. Thomas said on Wednesday, as a first round of one million tonnes remains blocked by a court and stocks are still bulging.
Thomas, who took independent charge of the portfolio in July, said on Friday India could consider allowing an extra one million tonnes of rice exports at the next meeting of a panel of ministers, which can act without cabinet approval.

Corn Falls Most in More Than a Week as Rains in U.S. May Ease Crop Stress (Source: Bloomberg)
Corn and wheat fell the most in more than a week in Chicago on speculation rains will boost crop prospects in the U.S., the biggest exporter of the grains. The western Midwest will have increasing showers over the next few days, and that pattern may shift into the eastern Midwest during the weekend, helping support corn and soybeans, Telvent DTN Inc. said in a forecast yesterday. Rain may fall in northern regions of the winter-wheat belt, improving prospects for planting of the crop, the forecaster said. “Rains at this sort of critical crop development are always good,” Victor Thianpiriya, an agricultural commodity analyst at Australia & New Zealand Group Ltd., said by phone from Melbourne today.

Thai H1 2012 sugar premiums drop, output revised up
SINGAPORE, Aug 18 (Reuters) - Thai sugar premiums for next year's delivery fell more than half after Thailand raised its cane output forecast to a record in the next crushing season, giving consumers a chance to grab a bargain, dealers said on Thursday.
Thai Sugar Millers Corporation said the world's second-largest sugar exporter after Brazil could produce 100 million tonnes of sugar cane in 2011/12, which would yield around 10 million tonnes of sugar.

Asia Cocoa-Harvest yields poor beans; powder in demand
SINGAPORE, Aug 18 (Reuters) - The main cocoa harvest was underway in Indonesia's major growing island of Sulawesi but higher bean count indicated poorer quality, while extreme weather could damage the next crop later this year, dealers said on Thursday.
Slow shipments also suggested that grinders were cutting back on purchases to help ease excess stocks of butter, as ratios for the key ingredient for making chocolates were stuck at 9-year lows at 1.10 times London futures.

Thai 2011/12 sugar cane crop may hit 100 mln tonnes-millers
BANGKOK, Aug 18 (Reuters) - Thailand, the world's second-biggest sugar exporter, could produce record cane output of 100 million tonnes in its 2011/12 crop, equal to around 10 million tonnes of sugar, The Thai Sugar Miller Corporation said on Thursday.
That matched a cane forecast from the International Sugar Organization (ISO) early this week but was well above a forecast made by Thailand's Office of Cane and Sugar Board (OCSB) early in August of 92-95 million tonnes of cane, or around 9.2 million tonnes of sugar.

Brazil mid-crop cocoa output could yet surprise
SAO PAULO, Aug 17 (Reuters) - Forecasts for Brazil's mid-crop cocoa harvest may have been too conservative, analyst Thomas Hartmann said, after a dip in output from some regions proved just a blip and as Bahia's output held steady.
"As the weekly data start to accumulate, it becomes increasingly probable that the initial forecasts for the Temporao, both for Bahia and for other producing states, have been exceedingly pessimistic," Hartmann said in a crop update.

Brazil CS sugar output seen down at 32.3 mln T-JOB
SAO PAULO, Aug 17 (Reuters) - Sugar output from Brazil's main center-south cane region is seen at 32.3 million tonnes, revised down from a July forecast of 33.5 million tonnes, consultants JOB Economia said on Wednesday.
JOB's director, Julio Maria Borges, said he lowered his view for cane output in the region that accounts for 90 percent of Brazil's crop to 522 million tonnes, from 540 million in July.

Asia sugar demand growth opens door to small suppliers
LONDON, Aug 17 (Reuters) - Increasing demand for sugar by China, Indonesia and Malaysia in the next few years is likely to lead to a surge in production by small suppliers such as southern African and Latin American countries as the big exporters fail to keep pace.
Demand growth in sugar is being led by Asia, analysts say. Next year will see Russia's import needs surpassed by China, Indonesia, Malaysia and a number of large refineries in the Middle East.

Crude Oil Heads for Fourth Weekly Drop on Growth Downgrades, U.S. Job Cuts (Source: Bloomberg)
Oil declined in New York, heading for a fourth weekly drop, as investors bet fuel demand will falter amid signs of weaker growth in Europe, the U.S. and China, which account for about half of world crude consumption. Futures fell as much as 1.8 percent after Morgan Stanley cut its forecast for global growth in 2011 yesterday, citing an “insufficient” policy response to Europe’s sovereign debt crisis, weakened confidence and the prospect of fiscal tightening. Deutsche Bank AG reduced its growth outlook for China and U.S. jobless claims increased last week. “It doesn’t look good and perhaps there is more pain to come,” said Jonathan Barratt, a managing director of Commodity Broking Services Pty in Sydney, who predicts crude will average $100 a barrel this year. “Volatility will remain. There’s the potential for a double-dip recession in the U.S., the news out there is not good for crude.”

Oil Caps Year’s Third-Biggest Drop as Banks Cut Growth Outlook (Source: Bloomberg)
Crude oil capped the third-largest decline of 2011 as commodities fell around the world after Morgan Stanley and Deutsche Bank AG cut their forecasts for global economic expansion. Futures dropped 5.9 percent and stocks plunged after Morgan Stanley cited an “insufficient” policy response to Europe’s sovereign debt crisis, weakened confidence and the prospect of fiscal tightening. The declines accelerated after U.S. government data showed that jobless claims rose last week. “The most recent economic data is what’s guiding all asset classes,” said Adam Sieminski, chief energy economist at Deutsche Bank in Washington. “This means that just about everything but gold is falling right now.”

Japan July crude oil import volumes drop 11.2 pct
TOKYO, Aug 18 (Reuters) - The volume of Japan's customs-cleared crude oil imports fell 11.2 percent in July from a year earlier in its sharpest decline since April, when some refineries halted imports due to damage from a massive earthquake, Ministry of Finance data showed on Thursday.
The fall marked the first decline in three months, amid signs of recovery after the massive quake and tsunami on March 11 devastated the country's northeast coast, damaging infrastructure, disrupting supply chains and knocking the economy into recession.

Brent crude slips, below $111 on euro zone woes, firm dollar
SINGAPORE, Aug 18 (Reuters) - Brent crude fell, staying below $111 a barrel on Thursday as ongoing concerns over Europe's debt crisis and a firmer dollar drew investors away from riskier assets like oil and into the safe havens of gold and the Swiss franc.
"The market was disappointed when Swiss central bankers didn't propose a euro peg, it sent a signal that they are contented to let the franc appreciate and that led to a flight to safety, away from assets like oil," said Gordon Kwan, head of energy research at Mirae Asset Securities in Hong Kong.

Libyan rebels seize western oil refinery
ZAWIYAH, Libya, Aug 18 (Reuters) - Libyan rebels took control of an oil refinery in the western town of Zawiyah and blocked the main highway north to the capital on Thursday, further isolating Muammar Gaddafi's Tripoli stronghold.
Rebel advances in recent days have cut Gaddafi's forces off from their main supply routes following a months-long stalemate, putting the Libyan leader's 41-year rule under unprecedented pressure.

Global economic gloom to sink tanker market recovery hopes
SINGAPORE/LONDON, Aug 18 (Reuters) - The crude oil tanker market's hopes for a recovery next year could run aground as global economic turmoil stifles oil demand in the United States and Europe, denting prospects for a sector already battling a supply glut and a rate rout.
Strong global oil demand, driven mainly by China, has been the lone bright spot in the depressed dirty tanker market this year, although earnings for ship owners still slipped to record lows this month as supply of new ships outpaces demand growth.

Chile Collahuasi union threatens one-day stoppage
SANTIAGO, Aug 17 (Reuters) - The labor union at the world's No. 3 copper mine, Chile's Collahuasi, threatened on Wednesday to stage a one-day stoppage on Sept. 2 if the mine's operator does not hire back workers fired after a previous disruption.
Collahuasi, jointly owned by global miners Xstrata  and Anglo American , fired six workers after a 24-hour partial stoppage in late July that came amid a rash of labor unrest in the world's top copper producer.
UK Farmland Selling At Record In 1H On High Food Prices - RICS
Surging food prices pushed the cost of U.K. farmland to a record high in the first half 2011, according to a survey by the Royal Institute of Chartered Surveyors, or RICS. The average cost of an acre [0.4 hectares] of bare land across the U.K. jumped to GBP6,115, up 4.6% from GBP5,846 at the end of 2010--the second consecutive six month period of record prices and the fourth straight increase for a six-month period. Yet while land values have already more than doubled in the past five years, the London-based organization said it expects prices to rise even further as farmers look to cash in on high commodity prices. Wheat plantings in England rose 1.6% to 1.82 million hectares and oilseed rape plantings jumped 8% to a record high this year as farmers expanded acreage in response to high prices, according to data from the U.K.'s farm ministry.
"With commodity prices still very high, many commercial farmers appear more keen to expand their businesses rather than sell their land," said RICS spokeswoman Sue Steer. "This can only lead to even higher prices." Arable land appreciated by 4.9% an acre and pastures by 4.2% an acre since the end of last year, RICS said. Prices of farmland that includes housing rose 5.9% in the six months to GBP7,479/acre.

METALS-Copper prices sag, market confidence crumbles
LONDON, Aug 18 (Reuters) - Copper prices sagged on Thursday as the euro zone debt crisis and worries about economic slowdown in top consumer China reinforced gloomy growth and demand prospects, while a higher dollar also undermined sentiment.
Benchmark copper  was trading at $8,872 a tonne at 0941 GMT from $8,970 a tonne at the close on Wednesday. The metal used in power and construction earlier on Thursday hit a session low of $8,854.50 a tonne.

PRECIOUS-Gold rises towards record high, unease deepens
LONDON, Aug 18 (Reuters) - Gold rallied back towards record highs above $1,800 an ounce on Thursday, driven by unease over the lack of a solution to the European debt crisis and sluggish growth in the developed world which has shaken investor confidence in stocks, bonds and hard currencies.
Prices have climbed to within $5 of last week's record high of $1,813.79 an ounce.

Spot Gold, Gold Futures Advance to Records on Global Economic Concern (Source: Bloomberg)
Gold for immediate delivery gained as much as 0.4 percent to a record $1,831.60 an ounce. December- delivery futures rose as much as 0.7 percent to an all-time high of $1,834.40 an ounce.

Gold and platinum tussle for top spot
SINGAPORE/LONDON, Aug 17 (Reuters) - Spot platinum headed for a seventh consecutive session of gains on Wednesday, after buying interest was triggered last week when its value relative to gold dipped to a discount for the first time since the 2008 financial crisis.
The spread between spot platinum and gold prices hit a discount of $31 an ounce last week, its lowest in nearly 26 years, as economic concerns boosted the safe-haven appeal of gold but weighed on industrial metal platinum.

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