GLOBAL MARKETS-Stocks, euro recover after slide; outlook wary
SINGAPORE, Sept 13 (Reuters) - Asian stocks rose and the euro edged off a seven-month low after a report that Italy may get financial support from China sparked a bout of short-covering but did nothing to ease fears that Europe is sliding into another banking crisis.
"There are still enormous challenges facing the European system at this point and fears around a default in Greece are very high and it's hard to see that changing any time soon," said Greg Gibbs, a strategist at RBS in Sydney
European Stocks Extend Two-Year Low (Bloomberg)
European stocks declined, with the Stoxx Europe 600 Index extending a two-year low, as French banks tumbled amid mounting concern that Greece will default. U.S. futures dropped, while Asian shares were little changed. The Stoxx 600 slipped 1.2 percent to 216.22 at 9:17 a.m. in London. The gauge has fallen 26 percent from this year’s peak on Feb. 17 as European and U.S. economic reports trailed forecasts, adding to concern that the global economic recovery is at risk. The retreat has left the gauge trading at 9 percent the estimated earnings of its companies, the lowest valuation since March 2009, according to data compiled by Bloomberg. The MSCI Asia Pacific Index gained 0.1 percent today, while Standard & Poor’s 500 Index futures expiring in December slipped 1.4 percent.
FOREX-Euro firm after short-covering rally, downtrend intact
TOKYO, Sept 13 (Reuters) - The euro held firm after a choppy session overnight saw a wave of short-covering lift it by more than two cents on hopes that China will bolster Italy by buying its bonds, but traders found few reasons to stay upbeat about the currency.
"All eyes are squarely on that seven-month low around $1.35 hit overnight," said Koji Fukaya, director of global foreign exchange research at Credit Suisse Securities in Tokyo.
GRAINS-US corn firm on tightening supplies, wheat up
SINGAPORE, Sept 13 (Reuters) - Chicago corn rose for a third straight session as a government forecast of a lower U.S. crop this year continued to buoy the market, while wheat rose around half a percent, recovering from a one-month low on bargain hunting.
"We saw wheat lose ground to corn last night as a result of the USDA report; today it is probably profit taking on the wheat-corn spread," said Brett Cooper, a senior manager of markets at FCStone Australia.
Australia sees record wheat exports, may pressure prices
SYDNEY, Sept 13 (Reuters) - Australian wheat exports could reach a record high in 2011/12, with the harvest also seen close to a new peak, helped by better growing conditions in some key crop areas, the government's chief commodities forecaster said on Tuesday.
The forecast of more wheat supplies from Australia is bearish for the market as it comes against the backdrop of higher-than-expected global production and stockpiles estimated by the U.S. Department of Agriculture.
Western Canada harvest well ahead of normal
WINNIPEG, Manitoba, Sept 12 (Reuters) - The harvest of all crops in Western Canada is well ahead of normal, due to ideal dry, warm weather, the Canadian Wheat Board said on Monday.
Sixty percent of the crop has been harvested, compared to 49 percent normally and 23 percent last year, the board said.
Brazil CS sugar output down 9.4 pct - Unica
SAO PAULO, Sept 12 (Reuters) - Sugar production in Brazil's center-south totaled 20.4 million tonnes from the start of the season to Sept. 1, down 9.4 percent from the same date a year earlier, cane industry association Unica said in a statement on Monday.
Cane crush since the beginning of the season in April reached 338.1 million tonnes, down 11 percent from a year earlier. Ethanol production lagged last year's output by 18.6 percent at 13.8 billion liters, Unica said.
US corn crop shrinks on heat; high prices curb demand
WASHINGTON, Sept 12 (Reuters) - A 3 percent reduction in the U.S. corn crop after a scorching summer will be largely offset by an abrupt fall in demand from both domestic and export consumers, the government forecast on Monday.
In a report that painted a marginally brighter outlook for world grain supplies thanks to larger wheat and rice crops, the Agriculture Department said U.S. corn yields had deteriorated even more than analysts had forecast, falling 4.9 bushels per acre to 148.1 bushels, lowest in six years.
W.Canada farmers back grain monopoly in nonbinding vote
WINNIPEG, Manitoba, Sept 12 (Reuters) - Nearly two-thirds of Western Canada's farmers want to keep a decades-old monopoly system for selling their grain, according to a non-binding vote that is unlikely to derail plans to open the market.
The mail-in vote, which Ottawa said was flawed, appears to entrench both sides in their adversarial positions with less than 11 months to design any new model for the Canadian Wheat Board if it is to continue operating once the monopoly ends in August 2012.
Ivorian cocoa output to slip in upcoming crop -BCC
ABIDJAN, Sept 12 (Reuters) - Ivory Coast's cocoa production during the forthcoming 2011-12 main crop will fall short of last year's record, the head of industry regulator BCC told Reuters on Monday.
"We have not yet finished our work to come up with a specific projection, but we are expecting much less this year," Eric Koffi told Reuters by telephone.
India's August rubber imports slump 42 pct on year
MUMBAI, Sept 12 (Reuters) - India's natural rubber imports in August slumped 42 percent to 14,060 tonnes from a year ago as prices in the local market fell below international levels, erasing the incentive for tyre companies to buy overseas, the state-run Rubber Board said.
In August, domestic prices were over 2 rupees per kg lower than the international market. On Aug. 31, the local market price was 214 rupees per kg compared with 216.6 rupees in Thailand.
Oil rises on weak dollar after Wall St. rally
SINGAPORE, Sept 13 (Reuters) - Oil rose by as much as $1 as a weaker dollar rekindled some of the appeal of commodities and concern about Europe's deteriorating debt crisis eased temporarily.
"This is a shallow bounce because of Wall Street ending higher, so there is some confidence returning, but I don't think anybody would be putting any big positions given the global situation," said Victor Say, an analyst at Informa Global Markets in Singapore.
North Dakota oil up 40,000 bpd in July, hits record
NEW YORK, Sept 12 (Reuters) - North Dakota's oil production surged nearly 40,000 barrels per day (bpd) in July to a record 423,600 bpd, as drillers worked at a breakneck pace to add new wells and ramp up output in the prolific Bakken shale prospect.
The bonanza month surprised analysts and industry operators, and came as oil companies caught up on activities that had been stalled due to harsh winter weather and spring floods, according to said Lynn Helms, director of the Industrial Commission for North Dakota.
Total says to prospect for shale gas in France
PARIS, Sept 12 (Reuters) - Total said on Monday it wants to prospect for shale gas in France's southeast region but stressed it would not use the banned hydraulic fracturing drilling technique.
The French oil major wants to develop production of natural gas from shale rock formations as part of a strategy to boost unconventional oil and gas production to offset dwindling reserves.
Japan Aug aluminium stocks up 18.5 pct m/m
TOKYO, Sept 12 (Reuters) - Aluminium stocks held at three major Japanese ports came to 241,200 tonnes at the end of August, up 37,700 tonnes or 18.5 percent from a month earlier, trading house Marubeni Corp said on Monday.
Marubeni collects data from the key ports of Yokohama, Nagoya and Osaka.
China copper imports up but for how long?: Andy Home
-Andy Home is a Reuters columnist. The opinions expressed are his own-
LONDON, Sept 12 (Reuters) - Copper bulls have finally got something to cheer about in terms of Chinese imports of the red metal.
Having spent the first part of this year in de-stocking mode, the world's biggest buyer of copper registered a marked pick-up in imports last month.
Southern Copper advancing $1.3 bln Peru mine
AREQUIPA, Peru, Sept 12 (Reuters) - Southern Copper expects to complete the feasibility study for its $1.3 billion Los Chancas project in Peru this year and is preparing to resume talks with the government over its planned Tia Maria mine, the company's chief executive told Reuters.
The new Los Chancas mine could produce an estimated 80,000 tonnes of copper per year starting in 2015, CEO Oscar Gonzalez said late on Sunday before the opening of the biannual Perumin convention in Arequipa.
China commodity imports impress, with caveats: Clyde Russell
-Clyde Russell is a Reuters market analyst. The views expressed are his own-
SINGAPORE, Sept 12 (Reuters) - China's robust commodity imports in August show why Asia-focused investors remain considerably more upbeat than their European and U.S. counterparts.
Strong gains in imports of crude oil, copper and iron ore, coupled with still solid industrial production and signs that inflation is finally slowing, have combined to ease concerns that the world's largest commodity user is heading for a hard economic landing.
METALS-LME copper up on hopes of China buying Italian bonds
SHANGHAI, Sept 13 (Reuters) - London copper prices rose 0.8 pct on reports that China could bolster Italy's flagging economy by buying its bonds, adding a lift to negative investor sentiment over Europe's sovereign debt crisis.
"If China supports euro zone countries by buying up their bonds, it will lend support to the euro and cause the dollar to weaken, which will be good for commodities as a whole," said Great Wall Futures analyst Li Rong.
Australia's Sundance says remains in talks with Hanlong
SYDNEY, Sept 13 (Reuters) - Australian miner Sundance Resources remains in advanced talks with Hanlong Mining over the development of an iron ore project in Africa despite an insider trading probe into one of the private Chinese firm's executives, the firm said.
"Sundance continues to progress its advanced negotiations with Hanlong Mining, as well as with a number of other interested parties, in regards to the development of the Mbalam Iron Ore Project in the Republics of Cameroon and Congo," Sundance said in a statement on Monday
Philippines doubles fcast for 2011 mining investments
MANILA, Sept 13 (Reuters) - New investments in Philippine mining projects this year could easily reach $2.8 billion, double an earlier forecast, with more projects to be funded by Chinese firms, a senior government official said on Tuesday.
Investments in five major mining projects were expected to hit around $8 billion from 2012 to 2016, Leo Jasareno, chief of the Mines and Geosciences Bureau, told reporters.
Tajik Jan-Aug aluminium output off 20 pct y/y-source
DUSHANBE, Sept 12 (Reuters) - Central Asia's largest producer of primary aluminium, Tajikistan Aluminium Company (TALCO), cut output of the metal to 189,838 tonnes in the January-August period, down 20 percent year on year, a company source said on Monday.
Output in August was 18,771 tonnes, down 8.9 percent from July and off 33.1 percent from a year earlier, said the company official, who declined to be identified.
PRECIOUS-Gold rebounds 1 pct on persistent euro zone worries
SINGAPORE, Sept 13 (Reuters) - Gold prices rebounded 1 percent from a sell-off in the previous session, as heightened worries about the sovereign debt crisis in Europe remain supportive of safe-haven demand for bullion.
"There is a slow-motion train wreck going on in Europe at the moment, which is going to be relatively supportive of gold," said Nick Trevethan, senior commodities strategist at ANZ.
METALS-LME copper up on hopes of China buying Italian bonds
SHANGHAI, Sept 13 (Reuters) - London copper prices rose 0.8 pct on reports that China could bolster Italy's flagging economy by buying its bonds, adding a lift to negative investor sentiment over Europe's sovereign debt crisis.
"If China supports euro zone countries by buying up their bonds, it will lend support to the euro and cause the dollar to weaken, which will be good for commodities as a whole," said Great Wall Futures analyst Li Rong.
PRECIOUS-Gold rebounds 1 pct on persistent euro zone worries
SINGAPORE, Sept 13 (Reuters) - Gold prices rebounded 1 percent from a sell-off in the previous session, as heightened worries about the sovereign debt crisis in Europe remain supportive of safe-haven demand for bullion.
"There is a slow-motion train wreck going on in Europe at the moment, which is going to be relatively supportive of gold," said Nick Trevethan, senior commodities strategist at ANZ.
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