Oil eases towards $91 on disappointing US data, OPEC
SINGAPORE, Jan 14 (Reuters) - Oil eased, pressured by disappointing U.S. economic data and the prospect OPEC would raise output should prices break above $100 a barrel for an extended period.
U.S. jobless claims hit a 10-week high last week while producer prices shot up in December, pointing to headwinds for an economy that Federal Reserve Chairman Ben Bernanke said was showing fresh vigor.
COMMODITIES: US corn lifted on supply concern; oil, metal fall
NEW YORK, Jan 13 (Reuters) - U.S. corn and soybean futures rallied to 2-1/2-year highs on Thursday as signs of tightening global supplies boosted prices for a second day, while demand concerns hit oil and metals prices.
"USDA's numbers yesterday, in soybeans in particular, but also in the corn, were surprisingly bullish and presented an alarming supply situation that is now fueling these price gains," said Mario Balletto, analyst with Citigroup.
GLOBAL MARKETS: Euro has best day in six months, US stocks fall
NEW YORK, Jan 13 (Reuters) - The euro surged on Thursday, taking on renewed vigor after better-than-forecast debt auctions by Spain and Italy and a hawkish rate view from the ECB but weak U.S. jobless claims data weighed on U.S. stocks.
"He sent a mild warning to markets that the ECB's assessment on interest rates could change," said Commerzbank economist Michael Schubert.
Alaska to shut oil pipe this weekend for bypass
NEW YORK, Jan 13 (Reuters) - Alaska's main oil pipeline will shut for 36 hours over the weekend to install a bypass aimed at restoring oil shipments to full volumes after the line was shut following a leak last week, its operator said on Thursday.
Crude flow was 320,000 barrels per day on Thursday, about half of normal levels, after operator Alyeska partially resumed shipments earlier this week. The rate fell from a previous 400,000 bpd on Wednesday, as the pipeline drew less oil from storage tanks along its trajectory, said spokeswoman Stefani Bell.
Alaska pipeline throughput falls to 320,000 bpd
ANCHORAGE/NEW YORK, Jan 13 (Reuters) - Throughput of crude on the Trans Alaska Pipeline System fell to 320,000 barrels per day on Thursday, down from 400,000 bpd on Wednesday, said Stefani Bell, a member of the Joint Information Command responding to an oil leak last week on the 800-mile (1,287 km) line.
The drop in throughput from Wednesday's levels came as TAPS drew less crude from storage tanks along the line.
India Panel Recommends Steps To Implement Food Security Bill (Source: CME)
An expert panel on India's proposed Food Security Bill recommended delivering subsidized food grains to the poorest of population in a manner that won't derail the government from attaining its broad fiscal goals. A committee headed by C. Rangarajan, chairman of the prime minister's Economic Advisory Council, proposed assured delivery of wheat at INR2 a kilogram and that of rice at INR3 a kilogram to 46% of rural and 28% of urban population. "The total food grain requirement for the entitled population, buffer stocks and other welfare programs which are treated as mandatory will be 50.96 million tons in 2011 and 51.93 million tons in 2014," the panel said. The government is pushing for a law to subsidize grains to partly shield its voter base from surging inflation in a country where about 40% of the 1.2 billion population lives at $2 a day.
India already provides cheap grains and pulses to nearly 180 million poor or low-income families through a public distribution system that will cost nearly $12 billion in the year through March 2011, accounting for about 1% of gross domestic product and 5% of total government spending.
World commodity prices poised to gain on rising yuan
SINGAPORE, Jan 13 (Reuters) - Beijing's moves to control inflation and trim its trade surplus by allowing the yuan to strengthen could boost China's commodity imports and lift global prices, but would likely have little impact on domestic prices.
China is one of the top consumers of many commodities including oil, iron ore, copper and soy, and a rise in the Middle Kingdom's purchasing power would allow it to import more for the same amount of yuan -- if international prices are stable.
Fed sees somewhat brighter outlook for U.S. jobs
WASHINGTON, Jan 12 (Reuters) - The battered U.S. labor market may finally be looking up, according to a report from the Federal Reserve that found modestly better job conditions across the country.
The Fed's Beige Book, based on anecdotal reports from the business contacts of the central bank's regional branches, painted an increasingly bright, if cautious, picture.
Japan Nov core machinery orders fall 3.0 pct mth/mth
TOKYO, Jan 13 (Reuters) - Japan's core machinery orders unexpectedly fell 3.0 percent in November from the previous month, down for the third straight month, Cabinet Office data showed on Thursday, in a sign companies are putting off capital spending due to an uncertain economic outlook.
The fall in core orders, a highly volatile data series regarded as a leading indicator of capital spending, compared with the median estimate for a 2.0 percent increase and follows a 1.4 percent drop in October.
S.Korea steps up inflation battle, raises rates
SEOUL, Jan 13 (Reuters) - South Korea raised interest rates on Thursday, surprising markets, and unveiled a set of measures to contain mounting inflation as policymakers around the world battle a surge in prices of food and other commodities.
Bond prices fell as the rate move prompted traders to price in more tightening by the central back this year than they had earlier expected. A majority of analysts in a Reuters survey had believed the central bank would leave rates unchanged on Thursday but hike them next month.
PRECIOUS-Gold sags as euro zone debt fears recede
LONDON, Jan 13 (Reuters) - Gold fell on Thursday, pulling back from the previous session's one-week highs, as a series of successful euro zone bond auctions erased some safe-haven demand for the metal, although consumer demand remained fairly buoyant.
Palladium nudged at 10-year highs above $800 an ounce, having risen by 8 percent so far this week, driven by expectations of faster global growth, stable investment demand and optimism stemming from the Detroit auto show.
FOREX-Euro edges up after strong Spanish auction
LONDON, Jan 13 (Reuters) - The euro hit a one-month high against the Swiss franc and edged up versus the dollar on Thursday as speculation that measures to tame the euro zone debt crisis may be on their way prompted short covering.
The euro briefly nudged up to the day's high versus the dollar after strong demand at a Spanish government bond auction cooled speculation that debt problems plaguing Greece, Ireland and Portugal will spread to Madrid and beyond.
U.S. corn climbs to 2-½ year high on supply squeeze
SINGAPORE/MADRID, Jan 13 (Reuters) - Chicago corn rose to 2-½ year peaks after a surprisingly sharp cut in U.S. government forecasts for global supply of grains, and soybeans were steady after strong gains in the previous session.
"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.
World stocks at 28-month high, bond sales smooth
LONDON, Jan 13 (Reuters) - World stocks climbed to a new 28-month high despite weakness in Europe while the euro held on to the previous session's gains as bond auctions in Spain and Italy went without a hitch.
"It's been successful, the most positive has been reaching the top end of the objective and the bid-to-cover ratio of 2.1 is higher than the previous auction," said Soledad Pellon, an analyst at IG Markets.
Argentine farmers call strike over export policies
BUENOS AIRES, Jan 12 (Reuters) - Argentine farmers will halt grains sales next week to protest government curbs on wheat and corn exports, reviving a conflict that helped lift global prices to record highs in 2008.
Growers in the South American country, a leading source of grains and beef, have been at odds with center-left President Cristina Fernandez for years over export restrictions that they say drive down prices in the local market.
