Asian shares fall on fears over Europe fund tightness
TOKYO, Nov 18 (Reuters) - Asian shares fell for a fourth day in a row as Europe's funding difficulties intensified, with Spanish borrowing costs hitting an unsustainable level and premiums for dollar funds rising further.
"The euro zone debt crisis is turning into a global liquidity crisis, and leading to a vicious cycle of intensifying funding tightness spurring dumping of risk assets," said Kazuto Uchida, an executive officer and general manager of the global markets division at the Bank of Tokyo-Mitsubishi UFJ.
Economy Growing at Fastest Pace of ’11 in Fourth Quarter in U.S. Forecasts (Bloomberg)
The U.S. economy may end 2011 growing at its fastest clip in 18 months as analysts increase their forecasts for the fourth quarter just a few months after a slowdown raised concern among investors. Economists at JPMorgan Chase & Co. (JPM) in New York now see gross domestic product rising 3 percent in the final quarter, up from a previous prediction of 2.5 percent. Macroeconomic Advisers in St. Louis increased its forecast to 3.2 percent from 2.9 percent at the start of November, while New York-based Morgan Stanley & Co. boosted its outlook to 3.5 percent from 3 percent. “The incoming data on consumption, business spending and residential investment all point to GDP growth in the fourth quarter tracking 3.3 percent,” said John Herrmann, senior fixed-income strategist at State Street Global Markets in Boston.
FOREX-Dollar holds firm as bank funding worries grow
SYDNEY, Nov 18 (Reuters) - The U.S. dollar held firm in Asia on Friday, while the euro was surprisingly resilient with European banks seen repatriating funds back home as signs of funding stress grew amid a deepening euro zone debt crisis.
The spotlight fell on Spain on Thursday, which had to pay the highest rate to sell its 10-year debt since 1997, just shy of the 7 percent mark seen as unsustainable. Even then, it could not raise the full target amount.
Brent heads to below $108 on fears Europe crisis worsening
SINGAPORE, Nov 18 (Reuters) - Brent crude futures extended losses for a second day, heading to below $108 on concerns over demand growth as Europe struggles to contain its debt crisis from spiralling out of control and hurting the global economy.
"The pullback that we have seen shouldn't come as a surprise as the euro zone crisis and ballooning costs are having an impact across the board," said Ben Le Brun, market analyst at OptionsXpress.
US soy, wheat rise after selloff, corn struggles
SINGAPORE, Nov 18 (Reuters) - U.S. soy rose half a percent as the market recovered after two straight days of losses on hopes of strong demand from China, while wheat gained on bargain-hunting following a decline to a four-month low.
"We see bargain hunting taking place because of the sharp drop yesterday as China will take this opportunity to buy more soybeans," said Ker Chung Yang, an analyst at Phillip Futures in Singapore.
Argentina govt sees soy area at 19 mln hectares
BUENOS AIRES, Nov 17 (Reuters) - Argentina's 2011/12 soybean area is seen at 19.0 million hectares, up a touch from 18.9 million hectares last season, the Agriculture Ministry said on Thursday in its first forecast for the crop.
The government forecast came just after the Buenos Aires Grains Exchange said it expected that 18.85 million hectares would be planted with 2011/12 soy, up from its week-earlier view of 18.60 million hectares.
Ivorian cocoa prices steady on port, grinders-farmers
ABIDJAN, Nov 17 (Reuters) - Cocoa farmgate prices in Ivory Coast's cocoa regions were steady last week, as local grinders were rushes to collect good quality beans, while firm ports prices and concerns over futures shortages added some support, farmers said on Thursday.
In the western region of Gagnoa, farmers said the average price was at between 750 CFA francs per kg and 800 CFA, from between 700-750 the previous week as beans were increasingly attracting buyers.
Russia harvests 97.5 mln T grain so far-AgMin
MOSCOW, Nov 17 (Reuters) - Russia has harvested 97.5 million tonnes of grain by bunker weight from 98.1 percent of the harvesting area of 42.98 million hectares by Nov. 16, Agriculture Ministry data showed on Thursday.
The grain crop was up from 63.7 million tonnes a year ago, but down from the 101.9 million harvested by the same date in 2009.
India's Maharashtra so far produces 20 pct less sugar in 2011/12
MUMBAI, Nov 17 (Reuters) - India's top sugar producer Maharashtra has so far produced 20 percent less sugar than at the same point last year as cane crushing faced delays over a cane price dispute, an industry official said.
Crushing momentum has now picked up, however, after farmers and millers agreed on cane pricing, said the official at the Maharashtra State Cooperative Sugar Factories Foundation, who declined to be named.
Pakistan's palm oil import from Indonesia seen tripling in 2012
ISLAMABAD, Nov 17 (Reuters) - Pakistan is expected to at least triple palm oil purchases from Indonesia next year after a trade agreement between the two countries reduced import duties for the edible oil by about 15 percent, senior industry officials said on Thursday.
Pakistan, the world's fourth largest buyer of palm oil, purchases more than 90 percent of its needs from Malaysia, as its crude palm oil and products have enjoyed lower import duties since 2007.
Metal output cuts back on the menu
Nov 17 (Reuters) - Sharp falls in industrial metals prices from August have sparked talk of production cutbacks, particularly in aluminium, nickel and zinc, and although markets have since steadied, some high-cost producers are still feeling the pain.
Steel producers in Europe have made a flurry of cutback announcements, but so far there have been only a handful in base metals.
Freeport sees robust copper demand by China
NEW YORK, Nov 17 (Reuters) - Freeport-McMoRan Copper & Gold Inc , the world's largest publicly traded copper firm, is betting on robust Chinese copper demand to drive its industry, even as slower growth in Europe and the United States impacts some lines of business, the company's CEO said on Thursday.
"The fact that Europe will be in a period of no growth, or maybe even slightly negative contraction, and the U.S. is in slow growth; Asia continues to do well ... we're going to be all right," Richard Adkerson, the company's chief executive, said during a meeting with Reuters reporters on Thursday.
Copper down on high bond yields for Spain, France
SHANGHAI, Nov 18 (Reuters) - Copper fell, dragged by rising fears of a euro zone debt contagion after borrowing costs for Spain and France spiked.
"Copper prices have been pushed around by euro zone woes with Spain's borrowing costs up. Equities last night also set a bearish tone for base metals today," said a Sydney-based trader.
METALS-Copper down on high bond yields for Spain, France
SHANGHAI, Nov 18 (Reuters) - Copper fell on Friday, dragged by rising fears of a euro zone debt contagion after borrowing costs for Spain and France spiked.
Three-month copper on the London Metal Exchange fell 0.3 percent to $7,524.75 a tonne by 0404 GMT, after falling 2.5 percent previously. It is on track to post a weekly drop of 2.5 percent, which would be the the third straight week of weaker prices.
PRECIOUS-Gold steady; dollar, euro zone weigh
SINGAPORE, Nov 18 (Reuters) - Gold prices traded steady on Friday, on course for their biggest weekly fall in nearly two months, pressured by a firm dollar while investors stay nervous about the deepening euro zone debt crisis.
Spot silver fell as much as 2.2 percent to a one-month low of $30.98 an ounce amid a broad retreat in both precious and industrial metals, as the dollar held steady near a five-week peak against a basket of currencies.
Gold steady; dollar, euro zone weigh
SINGAPORE, Nov 18 (Reuters) - Gold prices traded steady, on course for their biggest weekly fall in nearly two months, pressured by a firm dollar while investors stay nervous about the deepening euro zone debt crisis.
"Near-term gold looks a little weak as the resilience of the dollar is not being helpful to commodities," said Nick Trevethan, a senior commodities strategist at ANZ in Singapore.
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