China regional banks told to hike reserves: report
China's central bank has ordered some small and medium-sized banks to raise their reserves in the latest in a series of such hikes aimed at reining in inflation, according to state media.
Crude oil gains after Mubarak speech
PERTH, Feb 11 (Reuters) - U.S. crude futures rose after Egypt's President Hosni Mubarak said he would transfer the reins of power to his vice president, but would not step down.
The speech sparked more worries that Egypt's unrest would spread across the Middle East and disrupt oil supply movement, pushing March crude oil futures up by more than a dollar in early trading.
U.S. wheat up after sharp decline; soy, corn steady
SINGAPORE, Feb 11 (Reuters) - Chicago wheat futures rose around half a percent ,while soybeans were little changed after sliding from 2-1/2 year highs in the previous session on disappointing U.S. weekly export sales.
"For corn, there is more strength coming in as there was impressive exports report from USDA yesterday and buyers are worried about lower stocks," said Ker Chung Yang, commodities analyst at Singapore-based Phillip Futures.
Argentine corn, soy output seen steady - exchange
BUENOS AIRES, Feb 10 (Reuters) - Plentiful rains in January improved Argentina's 2010/11 soy crop and the output outlook is stable at 47 million tonnes, Buenos Aires Grains Exchange said Thursday.
Argentina is the world's third-largest exporte
US govt hands may be tied on ethanol-USDA official
PALM BEACH, Florida, Feb 10 (Reuters) - The U.S. government has few options to slow down the ethanol boom that has played a big role in drawing down corn supplies to their lowest level in 15 years, a top U.S. Agriculture Department official said on Thursday.
"The fact is the industry has pretty much been built," USDA Chief Economist Joe Glauber told reporters on the sidelines of a Commodity Markets Council conference. "This isn't a question of just saying 'cut it off.' It's much more complicated than that."
Canada proposes July 1 start for biodiesel rule
OTTAWA, Feb 10 (Reuters) - Canada is proposing a July 1 start date for requiring 2 percent renewable content in all diesel fuel and heating oil, the government said on Thursday.
Canada's renewable fuels regulations, published in September 2010, already require an average of 5 percent renewable content in gasoline.
Gold regains strength, physical buyers scarce
SINGAPORE, Feb 11 (Reuters) - Gold regained strength after easing in the previous session, but a drop in ETF holdings to their lowest since late January, a firm U.S. dollar and a lacklustre physical market could cap its gains.
"There's not much going on in terms of demand in the physical market. That's why there are some stocks kept here. (People) try to sell them immediately," said Dick Poon, manager of precious metals at Heraus in Hong Kong, referring to physical supply.
Asia shares set for worst weekly drop in 9 months
HONG KONG, Feb 11 (Reuters) - Asian stocks fell and were on course for their biggest weekly loss in nine months, as investors shunned risk on concerns about the pace of policy tightening within the region and escalating tensions in Egypt.
Pressure on emerging market equities may well, therefore, continue while uncertainties about the intensity, duration and effect of the ongoing tightening cycle remain alive," Barclays strategists said in a weekly note.
OIL:Crude oil gains after Mubarak speech
PERTH, Feb 11 (Reuters) - U.S. crude futures rose on Friday after Egypt's President Hosni Mubarak said he would transfer the reins of power to his vice president, but would not step down.
The speech sparked more worries that Egypt's unrest would spread across the Middle East and disrupt oil supply movement, pushing March crude oil futures up by more than a dollar in early trading.
COMMODITIES:Up despite firmer dollar, Egypt uncertainty
NEW YORK, Feb 10 (Reuters) - Commodities rose on Thursday, as metals and some crops defied a firmer dollar, but oil gave back gains after unfounded reports that President Hosni Mubarak may quit led to speculation that unrest might ease in Egypt.
"Inflationary pressure stemming from stronger demand for commodities may pick up," it said.
GLOBAL MARKETS:Asian shares ease to 2-month lows, euro weakens
HONG KONG, Feb 11 (Reuters) - Asian shares slipped to two-month lows on Friday as investors were wary of adding risk due to rising uncertainty in Egypt while the euro came under pressure due to renewed concerns on the euro zone's debt crisis.
"Any easy gains in the EUR are susceptible to rapid reversal," said David Watt, senior currency strategist at RBC Dominion Securities.
China Seeks To Ease Fears Over Food
Chinese Premier Wen Jiabao sought to calm global concerns about the impact of severe droughts on China's grain output and inflation, saying the country's supply of grain is basically in balance with demand and reiterating the government's confidence that it can keep prices under control. Mr. Wen's public assurances, reported on state television Thursday, come ahead of next week's release of official January inflation data by the National Bureau of Statistics, expected to show that consumer prices rose at their fastest pace in over two years. Mr. Wen told a meeting Thursday of the State Council, China's highest administrative body, that stabilizing the production of grain and other crops is key to maintaining price stability and even social stability in China.
"We are confident that we have the ability to promote the stable development of agricultural products, to ensure the effective supply of agricultural products, especially grain, and to maintain the overall basic stability of goods prices," Mr. Wen was quoted as saying. On Tuesday, a United Nations agency warned that severe drought conditions are putting this year's wheat crop at risk in at least five Chinese provinces -- five provinces that account for about two-thirds of the country's total wheat production. The U.S. Department of Agriculture's current forecast, which isn't scheduled to be updated until May, puts China's wheat reserves this year at 60 million metric tons. Drought is adding to the already serious problem of inflation in China, which has been primarily driven by rising food prices for the past several months. According to the median forecast of economists polled earlier by Dow Jones Newswires, the consumer-price index for January will show a rise of 5.4% from a year earlier.
That would be the fastest pace of inflation since the 6.3% CPI of July 2008. Nonfood-price rises also likely accelerated in January, economists said, indicating that inflation pressures are spreading through the economy. On Tuesday, China's central bank, the People's Bank of China, raised benchmark lending and interest rates for the third time since October in a bid to get inflation pressures under control. The central government recently arranged 12.9 billion yuan ($1.96 billion) in funds to fight drought and support grain production, Mr. Wen said. On Wednesday the State Council issued a 10-point plan pledging small amounts of cash to irrigate wheat fields, plant wheat and corn and treat crop disease, as well as a $180 million fund to buy equipment and more than $1 billion for drought alleviation. In hitting major wheat-producing areas, the developing drought is posing a "direct" threat to China's summer grain production, Mr. Wen said.
He added that the government should give irrigation subsidies to farmers as soon as possible. Rare snowfall was seen this week in northern China. Beijing had its first snow of the winter, ending a string of 108 days without precipitation. It was the latest snowfall seen in the season in 60 years. But the National Meteorological Center was cited by the state-run Xinhua news agency as saying that the snow was unlikely to relieve the parched wheat-growing regions.
PRECIOUS-Gold dips below $1,360/oz as dollar strengthens
LONDON, Feb 10 (Reuters) - Gold eased below $1,360 an ounce in Europe on Thursday as the rising dollar pressured prices, and with Asian buying still light after the Lunar New Year holidays.
The metal has fluctuated between $1,340 and $1,370 this week, awaiting fresh direction. While there are currently few incentives to buy gold, given improving appetite for higher risk assets, few investors seem prepared to sell heavily.
FOREX-Euro hit by doubts over policy measures
LONDON, Feb 10 (Reuters) - The euro slipped against the dollar on Thursday as nagging doubts over a lack of concrete policy measures to tackle the euro zone debt crisis hit sentiment and pushed peripheral debt yields up.
Traders said an Asian sovereign account sold euros persistently from the European open. An east-European sovereign name was also seen selling.
