Oil extends gains to near $92/bbl on lower inventories, cold
SINGAPORE, Jan 13 (Reuters) - Oil extended gains to hold under $92 a barrel, buoyed by signs of higher demand after U.S. crude stockpiles fell more than expected and a cold snap swept through the U.S. Northeast, the region's largest heating oil market.
"We're seeing a very strong market in crude after four consecutive sessions of gains. There are expectations of continued growth in demand after the bigger-than-expected drop in U.S. crude stocks," said Matthew Lewis, an analyst with CMC Markets in Sydney.
US corn, soy climb to 2-1/2 year highs on supply squeeze
SINGAPORE, Jan 13 (Reuters) - Chicago corn rose 1 percent, while soybeans extended gains, with both markets climbing to their highest in almost 2-1/2 years, buoyed by a surprisingly steep reduction in global supply of grains and oilseeds forecast by the U.S. government.
"It is the question of seeing new highs from here as things are tightening in the U.S. and they are going to tighten up supplies across the world," said Adam Davis, a senior commodity analyst at Merricks Capital, a Melbourne-based funds manager that invests in agriculture.
Gold falls from 1-week high, bonds auction watched
SINGAPORE, Jan 13 (Reuters) - Gold eased after rising to its strongest in a week in the previous session as strong demand for Portugal's bond sale eased concern over the debt crisis in Europe.
"The safe haven demand for gold may recede temporarily. I would think that gains in gold for the day ahead may be difficult to sustain," said Ong Yi Ling, investment analyst at Phillip Futures in Singapore.
Euro dips before more debt auctions, oil edges up
HONG KONG, Jan 13 (Reuters) - The euro dipped but could head higher if Spain and Italy, like Portugal, also find decent demand for their debt, while U.S. oil prices crept up to $92 a barrel, potentially straining consumers who are already watching food prices climb.
"The strong bond auction in Portugal has calmed the markets and with no major negative factors in sight, foreign funds continue buying lagging banking and property shares," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management, in Tokyo.
OIL: Oil up after larger-than-expected fall in US crude stocks
SINGAPORE, Jan 13 (Reuters) - U.S. crude oil prices rose above $92 on Thursday after crude stocks in the world's largest oil user fell more than expected and a cold blast stoked demand for heating oil in the U.S. Northeast.
U.S. oil inventories fell for the sixth straight week, slashing supplies by 2.15 million barrels in the week ending Jan. 7, the Energy Information Administration said.
COMMODITIES: Soybeans, corn lead broad commodities rally
NEW YORK, Jan 12 (Reuters) - Soybean and corn futures jumped on Wednesday, helping power a broad rally across commodities as both hit 30-month highs after the U.S. government made surprisingly deep cuts in crop stocks.
The run-up in agricultural prices added to concerns about food inflation around the world, which has stoked political tensions.
GLOBAL MARKETS: Euro steady before more debt auctions, oil advances
HONG KONG, Jan 13 (Reuters) - The euro was stable on Thursday and could head higher if Spain and Italy like Portugal also find decent demand for their debt, while U.S. oil prices marched above $92 a barrel, potentially straining consumers watching food prices climb.
"The strong bond auction in Portugal has calmed the markets and with no major negative factors in sight, foreign funds continue buying lagging banking and property shares," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management, in Tokyo.
Alaska oil pipeline resumes flow at reduced rates
ANCHORAGE/NEW YORK, Jan 12 (Reuters) - Alaska's key oil pipeline has resumed shipments and was pumping 400,000 barrels per day, almost two-thirds of its normal levels, following a four-day shutdown due to a small leak, its operator said on Wednesday.
Since it was shut on Saturday, the closure of the line that normally transports 640,000 bpd shut in almost 12 percent of U.S. oil production and threatened to prompt supply shortages for refiners on the U.S. West Coast.
US crude stocks fall for 6th week, products rise-EIA
NEW YORK, Jan 12 (Reuters) - U.S. crude inventories fell more than expected last week in its sixth consecutive weekly drop, but gains in refined product stocks outpaced expectations, according to the Energy Information Administration on Wednesday.
Domestic crude stocks were off 2.15 million barrels to 333.11 million barrels in the week to Jan. 7, the EIA report showed, compared with expectations for a 1.1 million-barrel draw in a Reuters poll of analysts. Crude imports rose 449,000 barrels per day to 8.86 million bpd.
Argentina Farmers To Strike For One Week Over Export Controls' (Source: CME)
Argentina's farmers will launch a one-week strike starting Monday to protest government limits on grain exports, leaders of the country's four largest farm groups announced. The sale of non-perishable agricultural goods will be blocked during the strike, Rural Society president Hugo Biolcati said in a press conference. Argentina is the world's second-leading corn exporter, is third in soybean exports and is a significant provider of wheat exports. The farm group leaders met with Agriculture Minister Julian Dominguez and labor minister Carlos Tomada earlier Wednesday, but were unable to reach a deal over government intervention in local agricultural markets, Biolcati said. The Government tightly controls wheat and corn exports to keep down local prices, only clearing shipments once enough supply for domestic use has been set aside. Farmers complain that the government regularly stalls grain export approvals despite assurances that it has opened exports.
They say that allows exporters and domestic millers to take advantage of the slow pace of export permits to pay less for grains on the local market. "This is an almost obscene transfer of wealth from the farmer's pockets," Biolcati said. Mario Llambias, leader of the Carbap farm group, said that farmers are receiving offers for their wheat at $60 per ton less than market value based on international prices. Wheat trade at the Rosario Grain Exchange has stalled since the beginning of December, as exporters had enough of the cereal to cover all their export commitments allowed by the government, according to a trader at one of the leading grain exporters. Earlier in the day, the government said it had cleared for export the full 8.2 million metric tons of wheat expected to be available from the 2010-11 crop, but farm groups want the whole system of export permits abolished.
In 2008, farmers launched a series of crippling strikes over a four-month period to protest an increase in grain export duties, eventually forcing a congressional vote which reversed the tax hike.
Grain Prices Soar To Fresh Highs As US Cuts Supply View (Source: CME)
Grain prices soared after the U.S. Department of Agriculture made another deep cut in its outlook for global supplies. The USDA again revised downward its estimate for the size of last fall's corn and soybean harvest in the U.S. End-of-season inventories of corn, already expected to be at a 15-year low, were cut by more than 10%. Harvest estimates were trimmed for key export countries abroad. The closely watched monthly crop reports provided yet more confirmation that world supplies are approaching precariously low levels. The devastating drought and wildfires in Russia last summer was a shock to grain markets followed by a disappointing U.S. harvest. More recently, crops are hurting from a drought in Argentina, dryness in the U.S. Plains and torrential rains in Australia.
A tug-of-war is expected among crops as farmers decide what to plant this spring. High prices for wheat, soybeans and cotton will entice farmers to plant more of those crops, and that could mean corn supplies won't grow back to comfortable levels until 2013 or 2014, JP Morgan analyst Peter Meyer said. "Farmers (need) to think about planting their front yard," said Dan Basse, president of AgResource Co., an advisory and research firm based in Chicago. In its first estimate of how much winter wheat was sown this fall, the USDA said 41 million acres were planted. This was in line with expectations, but still remains below 2008 levels in part because some farmers likely are forgoing wheat to focus on soybeans. At the Chicago Board Of Trade, corn and soybean futures surged the most they're allowed to per exchange limits, before pulling back to settle at more than two-year highs.
Corn for March delivery, the most-active contract, closed up 4% to $6.31 a bushel, while soybean futures for January delivery, settled up 4.3% to $14.09 a bushel. Wheat prices jumped 1.5% to $7.70 1/2 a bushel. Last week, the U.N. Food and Agriculture Organization said its monthly food-price index, a closely watched indicator of international prices, hit a record high in December. The prior record from 2008 was set months after violent food riots in several nations, fueling concerns about the new high.
China c.bank adviser sees Q1 interest rate rise
BEIJING, Jan 12 (Reuters) - Another Chinese interest rate increase in the first quarter is likely, a central bank adviser said on Wednesday, but a vice governor cautioned against raising rates too steeply for fear of luring in hot money.
Li Daokui, an academic adviser to the People's Bank of China, said a rate increase in the first quarter would be reasonable because inflation tends to be elevated for seasonal reasons during the opening months of the year.
PRECIOUS-Gold strengthens as dollar eases, oil firms
LONDON, Jan 12 (Reuters) - Gold rose further above $1,380 an ounce in Europe on Wednesday on a retreat in the dollar, rising oil prices and firm physical interest from Asia.
Spot gold was bid at $1,382.90 an ounce at 1119 GMT, against $1,380.45 late in New York on Tuesday. U.S. gold futures for February delivery eased $1.40 an ounce to $1,382.90.
FOREX-Euro holds gains after strong Portugal auction
LONDON, Jan 12 (Reuters) - The euro held earlier gains on Wednesday after strong demand at a Portuguese government debt auction quelled some immediate concerns about the country's funding problems.
The euro barely moved after Lisbon sold 1.249 billion euros in debt, including 10-year bonds which were sold at a lower average cost that at a previous sale, while three-year bonds went at a significantly higher yield.
U.S. soy up 1 pct, corn steady ahead of key report
SINGAPORE, Jan 12 (Reuters) - Chicago soy futures rose more than 1 percent recovering from a two-week low, while corn was little changed as investors took positions ahead of a key U.S. government report expected to forecast tighter grain and oilseed supplies.
"We are not bullish on soybeans in the longer term but that doesn't mean it will not go higher in the short period," said Ole Houe, a senior manager at FCStone Australia.
