Chart reading : pullback correction range bound downside biased.
Chart reading : pullback correction range bound downside biased.
Chart reading : pullback correction range bound downside biased.
Chart reading : pullback correction range bound downside biased.
Brent up 1.5pct near $116; Libya action stokes MEast fears
SINGAPORE, March 21 (Reuters) - Brent climbed 1.5 percent on Monday towards $116 after western forces launched a military campaign against Libya, stoking fears that violence will intensify in North Africa and the Middle East, source of more than a third of the world's oil.
"At this stage, it looks like Libya has further to play. Gaddafi still seems very defiant. We'll see further spikes and shocks in the oil market this week," Lewis said.
Nigeria sees oil price easing in coming months
ABUJA, March 20 (Reuters) - Nigeria's oil minister said on Sunday global oil prices were expected to ease slightly in the coming months and that OPEC members did not consider their current level damaging to the world economy.
Oil prices surged above $110 a barrel last month after political unrest in Libya more than halved the North African producer's oil output. Top oil exporter Saudi Arabia has promised to meet any supply gap but prices have remained close to the two-and-a-half-year high hit last month.
U.S. corn, wheat extend gains on higher oil, fund buying
BEIJING, March 21 (Reuters) - U.S. corn and wheat futures extended a rally during Asian trading early on Monday as investors picked up positions in grains following at least a temporary easing of the crisis in Japan and talk of China buying U.S. corn.
U.S. corn traded up 1.9 percent as oil prices leapt on supply concerns after Western powers pressed ahead on Sunday with a campaign of air attacks in Libya.
Argentine rain helps soy crops, slow corn harvest
BUENOS AIRES, March 18 (Reuters) - Rains over the past week in Argentina have boosted the condition of 2010/11 soybeans, but they arrived late for some crops and yields will reflect the renewed dryness, the Agriculture Ministry said on Friday.
Argentina, the world's third-biggest soybean supplier, had dry weather earlier this season, limiting production forecasts. Heavy rains from mid-January brightened the outlook, but parched conditions have caused problems again in recent weeks.
Informa raises US 2011 corn area f'cast, cuts soy
CHICAGO, March 18 (Reuters) - Analytical firm Informa Economics projected that U.S. farmers will plant 75.269 million acres (30.46 million hectares) of soybeans this spring, a drop from its January estimate of 76.654 million, trade sources said Friday.
The firm raised its estimate of 2011 U.S. corn plantings to 91.758 million acres (37.13 million hectares), which was up from 90.9 million in January -- but below the U.S. Department of Agriculture's preliminary forecast of 92 million.
Gold rises on growing Middle East tensions, weak dollar
SINGAPORE, March 21 (Reuters) - Gold prices edged higher on Monday on the escalating tension in the Middle East and North Africa after western forces launched air attacks in Libya, as a weaker dollar also lent support.
"Obviously the tensions in the Middle East, coupled with the significantly weak dollar against the euro, help give gold the current boost," said Darren Heathcote, head of trading at Investec Australia.
Stocks rise as selloff seen overdone, oil jumps
HONG KONG, March 21 (Reuters) - Asian shares advanced on Monday as market players scooped up beaten-down stocks after heavy losses last week, while oil prices jumped more than $2 as Western forces struck targets in Libya.
"From a technical perspective, Asia-ex Japan is very oversold. Much of the bad news is in the price of Asian equities and monetary policy is not hugely restrictive," said Rosgen, who predicts the MSCI ex Japan at 675 points by the end of the year, a gain of nearly 50 percent from current levels.
Oil : Oil rises more than $2 on military action against Libya
SINGAPORE, March 21 (Reuters) - Oil jumped by more than $2 on Monday, sending Brent to $116 after western forces launched a military campaign against Libya, raising the stakes in a civil war that has nearly paralysed crude exports from the north African nation.
"I can see uncertainty and fear driving the price of oil higher in the short term," said Matthew Lewis, an analyst at CMC Markets in Sydney.
COMMODITIES: Oil slips on Libyan ceasefire, grains surge
NEW YORK, March 18 (Reuters) - Oil prices slipped on Friday after Libya said it would halt all military action, while grains surged as a rise in investors' risk appetite lifted corn to its biggest two-day gain in eight months.
Global uncertainty still played into trading, as safe-haven gold held most of its gains and investors pared U.S. crude's losses late as U.S. President Barack Obama warned of military action if Libya does not comply with the international community's demands.
GLOBAL MARKETS: Libya ceasefire prompts stock rally, G7 caps yen
NEW YORK, March 18 (Reuters) - Global stocks rose on Friday as traders took on riskier investments following a Libya ceasefire that reduced tension in the region, and after several central banks intervened to stabilize the yen.
Trading capped a week of extreme volatility marked by Wall Street's gauge of anxiety, the VIX, which on Thursday soared to its highest level since July. Stock market volumes surged on down days and fell on up days.
OPEC credibility at risk if members act alone-Iran
DUBAI, March 20 (Reuters)- OPEC's credibility is at risk and oil prices may collapse if members of the group unilaterally decide to increase output, Iran's OPEC governor warned.
"Given the market situation, if every OPEC member decides to act of their own this would damage the credibility of OPEC and their own interest," Mohammad Ali Khatibi said in a telephone interview on Sunday.
Oil Rises After U.S., U.K., France Begin Military Strikes Against Qaddafi (Source: Bloomberg)
Oil climbed in New York after the U.S., U.K. and France launched cruise missiles and airstrikes at targets in Libya and as continuing unrest in the region renewed concerns the turmoil may spread and disrupt supplies.
Bank of England’s Dale Says U.K.’s Economic Recovery is ‘Set to Continue’ (Source: Bloomberg)
Bank of England Chief Economist Spencer Dale said the U.K. recovery is likely to be sustained and investors expect global interest rates to increase faster than they forecast late last year.
Sony, Nissan to Resume Operations at Plants Idled by Quake (Source: Bloomberg)
Sony Corp. and Nissan Motor Co. said they’re preparing to resume production at some factories as Japanese manufacturers seek to recover from the strongest earthquake on record to jolt the world’s third-largest economy.
Japan May Take Five Years to Rebuild After Quake, World Bank Says (Source: Bloomberg)
The World Bank said it may take five years for Japan to rebuild after this month’s earthquake and tsunami, which killed at least 8,450 and destroyed thousands of buildings.
BOJ Reluctance to Finance Japan’s Borrowing Set to Be Tested (Source: Bloomberg)
The Bank of Japan’s reluctance to fund government borrowing is set to be tested by the economy’s need for stimulus in the aftermath of the March 11 earthquake.
Corn (Source: CME)
US corn futures close sharply higher as strong demand renews concerns about low supplies. China purchased corn from the US following a price break and may make further purchases this year, according to an employee of an international trade service agency. South Korea contracted purchases for at least eight cargoes of corn totaling 455,000 tons this week, a Seoul-based grains broker says. "The end users, whether they're domestic or international, said, 'I've got to start buying this stuff,'" says Alan Brugler, president of Brugler Marketing & Management. CBOT May corn climbs 37c to $6.83 1/2 a bushel.
Wheat (Source: CME)
US wheat futures finish firmer on spillover support from rallying corn, which has rebounded 11% the past two sessions, fueled by strong demand. Its gains lift wheat because both grains are used for livestock feed. Improving demand for wheat from foreign buyers and livestock producers added support to prices, one analyst noted. CBOT May wheat rose 12 3/4c to $7.23/bushel while KCBT May gained 14c to $8.45 and MGE May jumped 12 3/4c to $8.67 1/2.
Oats (Source: CME)
Oat futures finished higher as the market recovered from a seven-month low reached. Oats for May delivery gained 17 cents, or 5.1%, to $3.52 a bushel.
China Made Purchase Of US Corn On Thursday - Trade Source (Source: CME)
China purchased corn from the U.S. on Thursday and may make further purchases this year, according to a person with knowledge of the situation. The person employed by an international trade service agency did not disclose the size of the purchase, yet said China may continue to import U.S. corn this year and could expand buying next year to ensure sufficient supplies. Commodity traders have been closely watching Chinese imports of U.S. corn, with supplies projected to drop to a 15-year low this year. Traders and analysts had been talking about the potential for significant sales to China for months, but expectations for business decreased as corn prices climbed. Yet speculation on Chinese buying picked Thursday after the U.S. Department of Agriculture reported private exporters struck deals to sell 116,000 metric tons of corn for delivery to unknown destinations during the 2010-2011 marketing year.
China's corn stocks are at a historically low level that suggests the country may have to import large volumes, Standard Chartered wrote in a research note last month. China hasn't be a large importer of U.S. corn in recent years, yet some analysts predict its buying will pick up, potentially reshaping the global grain trade in coming years.
US Grains Council: Quake Affects 30% Of Feed Production In Japan (Source: CME)
Major grain import facilities in northern Japan suffered severe damage in last week's earthquake and tsunami, with roughly 30% of the country's feed production capacity affected, the U.S. Grains Council said. Much of the capacity of the damaged feed mills is being covered by mills in other areas of the country and mills restarting after the disaster, the trade group said. "There are current plans to increase production at unaffected mills and ports and transport the products to the affected areas," said Mike Callahan, the council's senior director of international operations in a statement. Japan has a total compound feed production capacity of 25 million metric tons. The council warned it's still awaiting official reports on the earthquake's total impact on the grain trade. Immediate challenges to getting feed to livestock and chicken production operations include a lack of available boats, damage to roads and a lack of reliable fuel supplies.
Because farmers tend to have only a limited supply of feed on site, the council said feed deliveries need to be made to ensure the welfare of animals. Damage from the earthquake has made it difficult to transport animals, and some processing plants and dairy facilities cannot operate at full capacity, the council said. "Feed mills are collaborating and coordinating feed production to cover all critical animal sectors," said Hiroko Sakashita, the council's associate director in Japan in a statement. The council said earlier this week grain shipments to Japan are continuing with southern ports, which receive the bulk of U.S. shipments, relatively unharmed in comparison to northern ports. Japan is the largest export market for U.S. corn.
No Farmland Bubble, But Correction Likely -US Ag Bank Regulator (Source: CME)
There is no bubble in U.S. farmland prices, although there is likely to be a downward correction in prices, a top regulator overseeing the nation's largest network of agricultural lenders said. Tight global grain supplies and sharply higher prices have created a robust farm economy, justifying higher land values, said Leland Strom, chairman and chief executive of the Farm Credit Administration. "You've got farmers with strong balance sheets, probably the strongest balance sheets you've had in the agriculture sector in the last 30, 40 years," Strom said in an interview on the sidelines of an expo on local and organic food production. Still, Strom said that in some cases high prices can't be justified in the long term. Farmland values in Iowa and other key agricultural states jumped 12% in 2010, the second-biggest increase in the past 30 years, according to the Federal Reserve Bank of Chicago.
Eventually, Strom said, U.S. farmer fortunes will shift, perhaps through a change in ethanol policy or adoption of improved technologies that lift crop yields elsewhere in the world. That gives prices some downward potential, he said. Strom also said the increase has been driven in part by investors who have noted the strong returns in farmland investment in recent years. But regulators are closely watching loan-to-asset ratios among its banks, which remain "at a very reasonable level," Strom said. The FCA oversees the federally chartered Farm Credit System, a network of five banks that accounts for more than a third of lending in the rural U.S. It also oversees the Federal Agricultural Mortgage Corp., or Farmer Mac. Some officials are voicing increasing concern about a bubble, including the chair of the Federal Deposit Insurance Corp. and the president of the Federal Reserve Bank of Kansas City.
Agricultural economists with the University of Tennessee issued a paper this week calling the rising values "scary." While they acknowledged stable loan-to-value ratios, they said much of that asset value is in land. "If land prices drop, the loan-to-asset ratio deteriorates quickly," they said. The economists added that if crop prices fall, rising input prices could put farmer balance sheets in the red, making it harder for them to repay loans. The rising values pose a challenge for farmers trying to figure out how to take advantage of their increased cash flow. "When land comes up for sale next to you, it may be a once-in-a-lifetime opportunity," Strom said on the sidelines of the FamilyFarmed Expo.
Central banks move to weaken yen, calm markets
LONDON/SYDNEY, March 18 (Reuters) - Japan bought billions of dollars to restrain a soaring yen on Friday, backed up by action by European central banks as the world's richest nations moved to calm financial markets made nervous by Japan's nuclear crisis.
The moves are the first joint intervention in currency markets by the Group of Seven leading powers since they came to the aid of the newly-launched euro in 2000, and signal the weight of concern about the wider impact of events in Japan.
China raises banks' required reserves again
BEIJING, March 18 (Reuters) - China's central bank said on Friday that it would raise lenders' required reserves by 50 basis points, the third time this year and the sixth since November.
The move increases the required reserve ratio for the country's biggest banks to a record 20.0 percent, another step in the government's campaign to control inflation.
US consumer prices turn higher, economy gains steam
WASHINGTON, March 17 (Reuters) - U.S. consumer prices increased at their fastest pace in more than 1-1/2 years in February as fresh data showed growth was accelerating, but underlying inflation pressures remained generally contained.
Some economists expressed concern that the deepening crisis in Japan could hurt U.S. growth in the weeks and months ahead but they cautioned it was too soon to know for sure.
Commodity fund in-flows surge to $4 bln in Feb-Lipper
NEW YORK, March 18 (Reuters) - Investors plowed more than $4 billion into commodity-based products and mutual funds in February, the most in nine months, favoring agricultural markets, silver and broad index funds, Lipper data showed on Thursday.
Inflows to U.S.-regulated "commodity products" rebounded to $4.05 billion last month, up from just $38 million in January, according to data tracking funds that invest directly physical commodities or derivatives, not corporate securities. It's the highest since 6.3 billion in May of 2010.
PRECIOUS-Gold gains on Libya unrest, eyes yen
LONDON, March 18 (Reuters) - Gold rose 1 percent on Friday, as the United Nations authorisation of military attacks in Libya boosted gold's status as a shelter from risk, while investors eyed whether intervention in the yen could calm markets jitters.
"The uncertainty across the different global centres is still there and that should support precious metals," said Saxo Bank analyst Ole Hansen.
FOREX-Yen falls on G7 intervention, more selling seen
LONDON, March 18 (Reuters) - The yen fell broadly on Friday as European authorities sold the Japanese currency in the first co-ordinated Group of Seven intervention since 2000, but traders said impact in European time appeared to be limited.
"It will be interesting to see whether any speculators will be brave enough to try and push the dollar down through 80 yen again," said Adam Myers, senior currency strategist at Credit Agricole CIB.
U.S. corn, wheat extend rally on exports, oil
SINGAPORE, March 18 (Reuters) - U.S. wheat and corn futures rose more than 3 percent adding to the previous session's biggest one day gains in five months, as strong weekly exports and talk of Chinese purchases propelled grains higher.
"U.S. exports sale numbers were very bullish," said Ker Chung Yang, investment analyst at Phillip Futures in Singapore. "We are seeing Asian equity markets are doing quite well at the moment."
Argentine corn crop seen at 20.5 mln T - gov't
BUENOS AIRES, March 17 (Reuters) - Argentina's 2010/11 corn crop is seen at 20.5 million tonnes, down 9.6 percent from last year due to dryness early in the season, the Agriculture Ministry said on Thursday in its first official forecast.
The government, which did not estimate 2010/11 soy output, held its forecast for 2010/11 wheat production at 14.7 million tonnes.
US Grain Exports-Corn sales at 3-wk high as prices fall
CHICAGO, March 17 (Reuters) - U.S. corn export sales jumped 72 percent to a three-week high last week as a six-day price slide, the longest in four months, lured buyers and lifted sales above 1 million tonnes for the seventh time in nine weeks, analysts said on Thursday.
Net U.S. wheat export sales climbed 31 percent to a three-week high as prices slid to the lowest point since December, when crop woes in major exporter Australia shifted more buying to U.S. shores, they said after the release of U.S. Agriculture Department weekly export sales data.
Yen slides after intervention; oil up on UN vote
LONDON, March 18 (Reuters) - Global stocks rose and the yen tumbled after the Group of Seven agreed on joint intervention to weaken the Japanese currency and calm markets worried about Japan's nuclear crisis.
"The G7 intervention is calming the markets, but we still need a few days of consolidation to think we are over the worst of it," Giles Watts, head of equities at City Index in London, said.
