Asian stocks inch lower, euro extends drop
SINGAPORE, Dec 29 (Reuters) - Asian stocks fell, taking cues from weak U.S. and European shares, as players cut positions heading into the year end with an Italian debt auction later in the day keeping markets nervous.
"Everyone is holding onto their cash and people are not willing to invest in risk assets. With this kind of market sentiment, there's nowhere for the cash to go," said Hajime Nakajima, a sales trader at Cosmo Securities.
Corn, wheat snap 8-day rally; soy falls for 2nd day
SINGAPORE, Dec 29 (Reuters) - Chicago wheat slid 1 percent, while corn lost 0.8 percent as the grain markets snapped eight straight sessions of gains on risk aversion which weighed on equities and buoyed the U.S. dollar.
"Right now it seems like a bit of risk off environment as we are seeing that across the equity markets," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne.
La Nina dryness cuts Argentine corn forecasts
BUENOS AIRES, Dec 28 (Reuters) - Argentina's 2011/12 corn crop will be smaller than initial forecasts due to dry weather linked to La Nina, but production should still reach a record, analysts say.
The lowest estimates, figuring in losses caused by the La Nina climate phenomenon, remain higher than the record 23 million tonnes of corn harvested in the 2010/11 season.
Ivorian cocoa buyers seek end to grinders tax break
ABIDJAN, Dec 28 (Reuters) - Major buyers of Ivorian cocoa have urged the government of the world's top producing nation to cut a 20-year old tax break given to local grinders, arguing the incentive handed grinders an unfair market advantage.
Members of an international and local buyers association, which includes France-based commodities firm Sucden and leading cocoa trader Armajaro, said in a letter to Ivorian authorities the tax benefit distorted the market.
Outlook still dry for south Brazil, Argentina soy
BRASILIA, Dec 28 (Reuters) - Brazil's southernmost soy state Rio Grande do Sul will have little rain in the next fortnight, forecaster Somar said on Wednesday, putting the newly sown crop there at greater peril of losses while Argentina's soy regions also remain dry.
Drought fears in South America have been a key driver behind a rise in Chicago soybean futures, which surged 3 percent to a six-week high on Tuesday. On Wednesday, January soybean futures slid 7-3/4 cents to $11.92 a bushel by 9:33 a.m. CST (1533 GMT), hit by profit-taking.
Brazil's Bahia cocoa main crop now past peak
BRASILIA, Dec 28 - Warehouse deliveries in Brazil's top cocoa-producing state Bahia slowed in the week to Dec. 25 from the previous week, data from Bahia Commercial Association showed, marking the start of the harvest's declining phase.
"Arrivals from Bahia have started to diminish but still maintained a volume that is the highest for the Christmas week of the last 15 years," said Bahia-based cocoa analyst Thomas Hartmann.
Russian 2011 grain crop seen at 93.8 mln T - AgMin
MOSCOW, Dec 28 (Reuters) - Russian 2011 grain crop is preliminarily estimated at 93.8 million tonnes, up from 61 million tonnes in the drought-hit 2010, but down from 97 million in 2009, the Agriculture Ministry said on Wednesday.
This volume will allow Russia to cover all domestic needs and to export 25 million tonnes of grain in the 2011/12 crop year, the ministry said in a statement.
Vietnam's coffee supply squeeze to perk up global prices
SINGAPORE/HANOI, Dec 28 (Reuters) - Global coffee prices may surge early next year as tighter bank lending in top robusta producer Vietnam chokes off cash to exporters, cutting supply and pushing up premiums even as the harvest rolls in.
London robusta prices could rise by about 10-20 percent, leaving roasters with no choice but to pay up until farmers in Vietnam decide to release stocks and beans from other key coffee growers resurface in the second quarter of 2012.
Brent oil eases towards $107, dollar weighs
SINGAPORE, Dec 29 (Reuters) - Brent crude oil edged lower towards $107 a barrel, as a stronger dollar and rising U.S. crude stocks offset Iranian threats to halt a vital oil trade route.
"A big increase in U.S. crude oil stocks and the falling euro against the dollar are the main pressure points for the market at the moment," said Ken Hasegawa, a derivatives manager with brokerage Newedge in Tokyo.
Vietnam 2011 crude oil output rises 1.1 pct y/y -govt
HANOI, Dec 29 (Reuters) - Vietnam produced an estimated 15.18 million tonnes, or 305,000 barrels per day (bpd), of crude oil this year, a rise of 1.1 percent from 2010, the government said on Thursday.
December's output reached an estimated 1.42 million tonnes, up 4.0 percent from the same month last year, the General Statistics Office said in its monthly report.
EU starts antidumping probe on some Chinese steel
LONDON, Dec 28 (Reuters) - The European Commission has opened an anti-dumping investigation on some Chinese organic coated steel products and imposed definitive antidumping duty on imports of Chinese stainless steel seamless pipes and tubes.
The EU body started the investigation after the European steel producers association, EUROFER, filed a complaint earlier this year alleging China was selling pre-painted sheet and plastic-coated sheet metal at extra low prices, threatening the domestic industry, it was reported in the Official Journal of the European Union last week.
Copper drops as firm dollar weighs; Italy bond sale eyed
KUALA LUMPUR, Dec 29 (Reuters) - London copper fell, dropping for a second straight session as a firm dollar weighed, while investors eyed an important Italian bond auction later in the day for further trading cues.
LME copper has dropped about 23 percent this year, coming after a 30 percent gain in 2010 and a 140 percent jump in 2009.
Gold wallows near 3-month low; Italy bond sale eyed
SINGAPORE, Dec 29 (Reuters) - Gold wallowed near a three-month low, remaining under pressure due to a firm dollar, while investors fretted over an important Italian bond auction later in the day.
"Gold is still up on the year and there are relatively few markets moving in the positive territory," said Nick Trevethan, Senior Commodity Strategist at ANZ. "People close their profitable positions to cash out before the year-end."
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