Euro up on debt deal hopes, China drags on stocks
SINGAPORE, Oct 10 (Reuters) - The euro rose on Monday after the leaders of France and Germany pledged to unveil a plan to solve the euro zone's sovereign debt crisis by the end of the month, but Asian shares struggled to make gains as Hong Kong and China stocks dragged.
"They are looking at sorting out the European debt issue sooner rather than later," said Phillip Weinberg, dealer at Melbourne-based investment management firm Karara Capital.
European Stocks Rise; U.S. Futures Advance (Bloomberg)
European stocks were little changed, halting a two-week rally, as banks fell, following a report that BNP Paribas SA and Societe Generale (GLE) SA plan to raise more capital. U.S. index futures and Asian shares rose. BNP Paribas and Societe Generale both lost more than 2 percent after they denied a newspaper report that they may seek to raise billions of euros. Dexia SA (DEXB) may be active when trading in the shares resumes after Belgium stepped in to shore up the company. Premier Oil Plc (PMO) rose 3.2 percent as analysts increased their recommendations on the shares. The benchmark Stoxx Europe 600 Index rose 0.2 percent to 232.39 at 8:55 a.m. in London as the leaders of Germany and France gave themselves three weeks to create a plan to recapitalize banks. Futures on the Standard & Poor’s 500 Index climbed 1 percent, while the MSCI Asia Pacific Index added 0.4 percent.
FOREX - Euro rises on EU pledge, markets cautious
SINGAPORE/SYDNEY, Oct 10 (Reuters) - The euro edged higher on Monday after leaders of Germany and France promised a new comprehensive plan to recapitalise euro zone banks by the end of the month, though markets remain wary as they have been disappointed many times before.
The meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy offered no details, but drew a pledge to do what is necessary to shore up banks, settle the Greek crisis and help growth in Europe, giving a gentle boost to risk sentiment.
Global growth a worry, China to the rescue
LONDON, Oct 7 (Reuters) - Demand for base metals has softened only slightly, propped up by tight supplies and strong Chinese appetite, even while prices have dropped as investors have retreated from markets in fear of a global economic downturn and Europe's debt crisis.
This is the message that echoed through London Metal Exchange Week, the main fixture in the global metals industry calendar, which drew thousands of professionals this week.
CFTC takes wait-and-see approach on Volcker rule
WASHINGTON, Oct 7 (Reuters) - The U.S. futures regulator may break with other agencies on a much-anticipated plan to ban most proprietary trading by banks, and could opt to put forth a slightly different version of the Volcker rule.
An independent approach from the Commodity Futures Trading Commission could raise questions about coordation and embolden banks to challenge the Volcker rule, although the agency -- which polices futures and derivatives markets -- is not believed to play a central role in implementing it.
Slight drop seen in US corn crop; more stocks
CHICAGO, Oct 7 (Reuters) - The size of the U.S. corn crop should be down less than 1 percent from last month as a drop in harvested acreage will largely be countered by better yields, analysts polled by Reuters said ahead of a government report.
The U.S. Department of Agriculture's supply-demand report on Oct. 12 is likely to peg this year's U.S. corn crop at 12.471 billion bushels on a yield of 148.7 bushels per acre (bpa), according a Reuters survey of 27 analysts.
India could burn fingers with aid to domestic palm refiners
KUALA LUMPUR/NEW DELHI, Oct 7 (Reuters) - India's plan to hike a domestic levy on refined palm oil, designed to protect its refiners from cheaper exports by top palm oil producer Indonesia, will backfire in the absence of rival suppliers to meet the appetite of the south Asian nation.
The world's top edible oil buyer could end up spending more on Indonesian crude palm oil , which has risen as high as $84 over benchmark Malaysian futures after Indonesia raised taxes on the crude in the middle of September.
Kansas wheat acres seen rising despite drought
CHICAGO, Oct 7 (Reuters) - Wheat planting in Kansas this year may rise 1 to 3 percent from a year ago despite more than half of the top U.S. winter wheat state being under a severe drought, the head of a Kansas wheat group said on Friday.
Disappointing corn yields this year, especially in bone-dry southern areas of the state, may have some producers resisting the urge to set aside acres for corn planting next spring and they may instead revert back to wheat, Justin Gilpin, chief executive of the Kansas Wheat Commission, told the Reuters Global Ags Forum.
U.S. soy stocks bolstered by weak exports
CHICAGO, Oct 7 (Reuters) - U.S. soybean stocks are expected to rise 11 percent from a month ago due to high prices denting demand, but a government report next week is likely to keep its estimate of yield unchanged, analysts polled by Reuters said.
Global soybeans stocks are also expected to rise, but by less than 1 percent, the analysts said, ahead of the U.S. Department of Agriculture's supply-demand report on Wednesday.
US soy at 1-week top on Euro zone debt deal hopes
SINGAPORE, Oct 10 (Reuters) - U.S. soybean futures rose to a one-week top on Monday, while wheat recovered after five straight weeks of losses on optimism as Europe's two biggest economies, France and Germany, promised a package by month-end to solve the euro zone's debt crisis.
"There is improved risk appetite with efforts being made in Europe to solve the debt crisis and also there was good news from the U.S.," said Ker Chung Yang, a commodities analyst at Phillip Futures in Singapore. "The harvest of corn and soybeans is progressing well which may add some pressure."
Kazakh 2011 grain crop seen at 22-23 mln T - AgMin
ASTANA, Oct 10 (Reuters) - Kazakhstan expects a post-Soviet record grain crop of 22-23 million tonnes by clean weight this year, Agriculture Minister Asylzhan Mamytbekov said on Monday.
"We are forecasting a grain harvest of 22 million to 23 million tonnes by clean weight," Mamytbekov told a government meeting.
Rain delays Vietnam's coffee maturing, harvesting
HANOI, Oct 10 (Reuters) - Recent rains in Vietnam's Central Highlands coffee belt has delayed cherries from maturing and discouraged farmers' drying, dashing market expectation of the early arrival of fresh beans, traders said on Monday.
Traders fear the rains could overstay late this month, disrupting harvesting in the world's second-largest coffee producing nation after Brazil, given forecasts of late ending of the rainy season and more storms.
China projected to import 14.2 mln T soy in 4Q -CNGOIC
BEIJING, Oct 10 (Reuters) - China will likely import a total of 14.2 million tonnes of soybeans in the last quarter, the China National Grain and Oils Information Center said in its daily report on Monday.
If the projection is confirmed, that would be a 3.0 percent fall from 14.64 million tonnes it imported in the same period last year.
Brazil Sept green coffee exports down 15 pct on yr
BRASILIA, Oct 7 (Reuters) - Brazil exported 2.56 million 60-kg bags of green coffee in September, down from the 2.99 million bags shipped in the same month a year ago, the Council of Green Coffee Exporters, Cecafe, said on Friday.
Brazil's 2011 smaller off-year harvest is now finished and the world's top coffee producer will be running down stocks from that crop until next year's expected larger on-year harvest starts in May.
India wheat exports seen at 1.2 mln tones- attache
Oct 7 (Reuters) - Following are selected highlights from areport issued by a U.S. Department of Agriculture attaché in India:” On September 9, 2011, the Government of India removedits export bans on wheat and no basmati rice.
Consequently, the MY 2011/12 wheat export forecast has been raised to 1.2 million tonnes and the MY 2011/12 rice export forecast has been raised to 4.5 million tones.-
Canada says law to end grain monopoly coming soon
WINNIPEG, Manitoba - Oct 7 (Reuters) - Canada's Conservative government will pass legislation "very soon" to end the Canadian Wheat Board's monopoly on marketing western wheat and barley for milling or export, Prime Minister Stephen Harper said on Friday, strongly warning the board to get out of the way.
Harper, in Regina, Saskatchewan for the announcement for construction of Western Canada's first major durum-processing plant in years, said his government will introduce legislation shortly after next week's House of Commons break and pass it soon after. The monopoly would end as of Aug. 1, 2012.
Brent up near $106 on euro debt steps, U.S. data
SINGAPORE, Oct 10 (Reuters) - Brent rose on Monday to near $106, fuelled by optimism that demand in the world's largest consumer would hold after U.S. data allayed fears of a renewed recession while the euro zone edged closer to a resolution of its debt crisis.
"There is a positive feel to problems being solved at the moment," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.
Saudi to supply full Nov crude to 2 Asia buyers - sources
SINGAPORE, Oct 10 (Reuters) - Saudi Arabia, the world's top crude exporter, will supply full contracted volumes of crude oil in November to at least two Asian term buyers, steady with October, industry sources familiar with the matter said on Monday.
Saudi Arabia made no changes to the operational tolerance in the supply allocation, the sources added, meaning buyers have the option of asking for cargoes to be loaded with up to 10 percent more or less crude than contracted.
Shanghai copper up after week-long holiday
SHANGHAI, Oct 10 (Reuters) - Shanghai copper slipped 0.8 percent by midday on Monday, weighed down by cautious sentiment as the market reopened after a week-long holiday.
"I expect Shanghai copper's upside to be limited today. The upward momentum from London's previous gains is stifled by a lack of open positions in Shanghai," CIFCO Futures analyst Zhou Jie said.
Indonesia's Sept tin exports fall 24 pct y/y
JAKARTA, Oct 10 (Reuters) - Indonesia's refined tin exports in September slipped 24 percent compared to the same month a year ago, a trade ministry official said on Monday. Indonesia, the world's top refined tin exporter, shipped 5,233.06 tonnes in September, compared to 6,904.37 tonnes in September last year, trade ministry data showed.
Union pessimistic as Freeport Peru strike drags on
LIMA, Oct 7 (Reuters) - Union leaders said they were pessimistic on Friday after failing to reach an accord with officials from Freeport-McMoRan to end an indefinite strike at the Cerro Verde mine.
Workers at the mine that produces 2 percent of the world's copper put down their tools on Sept. 29 demanding higher wages.
Iron ore, coal to move to shorter index-based pricing-ENRC
LONDON, Oct 7 (Reuters) - Pricing for steel ingredients iron ore and coking coal is likely to move to shorter-term index-based mechanisms, Jim Cochrane, chief commercial officer of Kazakh miner ENRC , said.
The top three iron ore miners Vale , Rio Tinto and BHP Billiton dumped a decades-old annual scheme last year in favour of quarterly pricing.
Zambia strikes spread at China-owned copper mines
LUSAKA, Oct 7 (Reuters) - Strikes spread in Zambia's copper industry on Friday, with more than 500 workers at a Chinese plant demanding higher pay, just two weeks after a new president took office on the promise of improving mining conditions.
"The strike today spread to Sino Metals where workers want higher salaries," National Union of Mine and Allied Workers general secretary Goodwell Kaluba told Reuters on Friday.
China Nickel to buy $266 mln stake in Indonesian mining firm
HONG KONG, Oct 10 (Reuters) - China Nickel Resources Holdings Co Ltd said on Sunday it would buy an 80 percent equity stake in Indonesian iron-nickel ore firm PT Yiwan Mining for HK$2.067 billion ($266 million) in a bid to secure supply of nickel-iron ores and mineral resources.
The Chinese integrated mineral resources, nickel and special steel maker said in a statement that HK$1.907 billion of the acquisition costs would be settled by the issue of convertible notes.
Indonesia's Sept tin exports fall 24 pct y/y
JAKARTA, Oct 10 (Reuters) - Indonesia's refined tin exports in September slipped 24 percent compared to the same month a year ago, a trade ministry official said on Monday.
Indonesia, the world's top refined tin exporter, shipped 5,233.06 tonnes in September, compared to 6,904.37 tonnes in September last year, trade ministry data showed.
Australia's Extract shares jump on Chinese bid speculation
MELBOURNE, Oct 10 (Reuters) - Shares in Extract Resources surged over 10 percent on Monday on expectations it may get a takeover offer from a Chinese company that is lining up a $1 billion bid for Extract's biggest shareholder, Kalahari Minerals .
Extract, which is developing the Husab uranium project in Namibia, potentially the second-largest uranium mine in the world, halted trading in its shares pending an announcement by Oct 12.
Congo copper output up, power a worry
LUBUMBASHI, Democratic Republic of Congo, Oct 7 (Reuters) - Democratic Republic of Congo's Katanga province is expected to produce 500,000 tonnes of copper this year, up 13 percent from 2010 despite power cuts that may threaten future investment and output in the mining sector, a government official said.
Katanga has some of the largest copper and cobalt deposits in the world, and it has enjoyed a post-war flood in investment, but a lack of infrastructure following decades of dictatorship and mismanagement continues to dog mining companies.
METALS - Euro rises on EU pledge, markets cautious
SINGAPORE/SYDNEY, Oct 10 (Reuters) - The euro edged higher on Monday after leaders of Germany and France promised a new comprehensive plan to recapitalise euro zone banks by the end of the month, though markets remain wary as they have been disappointed many times before.
The meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy offered no details, but drew a pledge to do what is necessary to shore up banks, settle the Greek crisis and help growth in Europe, giving a gentle boost to risk sentiment.
PRECIOUS - Gold up 1 pct as hopes rise on Europe debt
SINGAPORE, Oct 10 (Reuters) - Gold prices rose 1 percent on Monday, reversing a decline in the previous session, after the leaders of France and Germany promised to unveil new steps by the end of the month to resolve the euro zone's debt crisis, spurring commodities and equities.
The announcement by leaders of the bloc's top two economies followed the downgrade of credit ratings of Italy and Spain last week, which depressed the price of bullion.
Gold up 1 pct as hopes rise on Europe debt
SINGAPORE, Oct 10 (Reuters) - Gold prices rose 1 percent on Monday, reversing a decline in the previous session, after the leaders of France and Germany promised to unveil new steps by the end of the month to resolve the euro zone's debt crisis, spurring commodities and equities.
"For now, gold seems to follow the movement in the commodities market," said Ong Yi Ling, an analyst at Phillip Futures, adding that the safe-haven appeal of gold had faded after unprecedented huge volatility in recent months.
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