Overseas markets, demand lift palm oil to 3-week highs
KUALA LUMPUR, May 19 (Reuters) - Malaysian palm oil futures hit more than three-week highs on strong commodity markets and hopes of rising overseas demand although concerns over a build up in stocks may curb prices. "This is the beginning of weather market. Palm oil was supported by overseas grain futures at the time when domestic export data looks good," said a trader with foreign brokerage in Kuala Lumpur.
Dollar down as commodities and stocks rise
SINGAPORE, May 19 (Reuters) - The dollar slipped with funds sensing a rally this month is ending and expectations increasing that commodity prices have resumed an uptrend, pushing up equities in Asia's energy and materials sectors. Investors have been struggling to find a common theme in financial markets after two routs in commodities over the past two weeks led to a reduction of risky assets in portfolios. Economic data out of the United States and China also sent mixed signals.
Wheat dips from 3-week top, corn rises for 6th day
SINGAPORE, May 19(Reuters) - U.S. wheat climbed to a three-week top before giving up gains to fall 1 percent, while corn rose for a 6th straight session as adverse crop weather across top exporters Europe and the United States threatened to curb grain supplies. "The usual time to finish corn planting is over, farmers are trying to speed it up but the weather is not helping," said Ker Chung Yang, investment analyst at Phillip Futures in Singapore.
Russia sows over half targeted spring grain area
MOSCOW, May 19 (Reuters) - Russia sowed 16.4 million hectares with spring grains by May 18, 54.2 percent of the targeted area and up 2 million hectares from a year ago in spite of a delay caused by a late spring, farm ministry data showed.
An Agriculture Ministry statement issued late on Wednesday did not provide data on the sowing area for each of Russia's main cereals, spring wheat and barley.
India struggles to perfect art of monsoon forecasting
NEW DELHI, May 17 (Reuters) - Technological wizardry may have improved forecasting of the crucial monsoon rains in India, but success still remains, at best, patchy, making it tough for farmers to plan crops and meet demand in the trillion-dollar economy.
This year, the country has forecast a normal monsoon. In theory, that should mean higher farm output, which could tame food prices and help persuade the government to ease curbs on rice and wheat exports, benefiting other Asian economies that are struggling with food shortages.
China's 2010 corn harvest at record 177.25 mln T - Stats bureau
BEIJING, May 19 (Reuters) - China's 2010 corn harvest was at a record 177.25 million tonnes, according to figures published by the National Bureau of Statistics on Thursday.
The figure was much higher than earlier estimate by the China National Grain and Oils Information Center (CNGOIC), which put at 172.5 million tonnes.
U.S. Midwest farmland values rise 16 pct in qtr
CHICAGO, May 18 (Reuters) - Farmland values in the heart of the U.S. Midwest jumped 16 percent in quarter, spurred by rising commodity prices prompting farmers to buy land, a Federal Reserve bank survey said on Wednesday.
"At 16 percent, the year-over-year increase in farmland values in the first quarter of 2011 for the Seventh Federal Reserve District was the largest since 2007 and was last surpassed in 1979," the Federal Reserve Bank of Chicago said in its quarterly review.
Strategie Grains cuts French wheat fcast on drought
PARIS, May 18 (Reuters) - French analyst Strategie Grains on Wednesday said it had cut its estimate for the French soft wheat harvest to less than 35 million tonnes, from 36 million seen last week, due to a continued drought in the country.
That compared to 35.6 million tonnes of wheat harvested in 2010/2011.
"This figure could be revised down due to the high temperatures expected for the weekend and further dry weather," the analyst told Reuters, stressing that the 2011 spring was atypical and made forecasts more difficult.
German farmers see smaller 2011 grain crop
HAMBURG, May 18 (Reuters) - Germany's 2011 grain crop of all types is likely to fall to 40.7 million tonnes as recent dry weather has reduced yields, the German Farm Cooperatives Association said on Wednesday in its new harvest forecast.
This was down on its previous estimate of 44.1 million tonnes for grains of all types in April.The rapeseed harvest is likely to fall 22.6 percent on the year to 4.4 million tonnes, it said.
Drought trims European wheat crop forecasts
PARIS, May 18 (Reuters) - Estimates for the European Union's wheat harvest are shrinking by the day, with analysts cutting crop forecasts again on Wednesday as plants wilted in a months-long drought that looks set to continue for a while.
Several months of drier-than-usual weather have parched farmland and cut water reserves in key grain producers France and Germany, stoking worries of a drought similar to that experienced in 1976 and fuelling concern for the final harvests.
Sugar down, supply surplus weighs, coffee eases
LONDON, May 19 (Reuters) - ICE sugar fell in early trade as importers delayed purchases and upward revisions to crop forecasts weighed. Cocoa and coffee edged lower as commodities consolidated following the recent sell-off.
ICE raw sugar futures were lower as an improving supply outlook and expectations that the global market would shift into surplus weighed on prices.
Vietnam revises down April coffee exports to 2.1 mln bags
HANOI, May 19 (Reuters) - Vietnam's actual coffee loadings last month reached 126,000 tonnes, or 2.1 million bags, the customs department said on Thursday, down slightly from a government estimate of 130,000 tonnes.
The export volume, down from 160,600 tonnes shipped in March by the world's top robusta producer, is still a rise of 7.3 percent from April last year. It helped fill in the shortages caused by production declines in rival robusta producer Indonesia.
Guatemala coffee output seen up slightly in 2012-attache
WASHINGTON, May 18 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Guatemala: "Coffee production for MY 2012 is forecast to remain at 3.88 million bags, slightly above the level of 2011 production. Total bean exports are forecast at 3.67 million bags. Guatemala has positioned itself as a marketing leader with worldwide recognition for its specialty coffee.
The United States continues as Guatemala's biggest export market, accounting for 46 percent of its total coffee exports, 3 percent down from previous year. The European Union, as a block, is expanding considerably its purchase of Guatemalan coffee, accounting for 33 percent of Guatemalan exports.
India's cane, sugar output seen up 7-10 pct in 2011/12
NEW YORK, May 18 (Reuters) - India's sugar cane plantings and production in 2011/12 may increase from 7 to 10 percent, the director general of the Indian Sugar Mills Association (ISMA) said Wednesday.
Abinash Verma told delegates at the one-day International Sugar Organization-Datagro conference that Indian cane plantings last year reached 4.97 million hectares.
Colombia holds '11 coffee crop estimate despite rains
BOGOTA, May 18 (Reuters) - Colombia's coffee federation said it would maintain its forecast for 2011 production at between 9 million and 9.5 million 60-kg bags despite torrential rains that have battered coffee farms for months.
Coffee exports fell in April due to the rains. But the federation's head Luis Genaro Munoz said on Wednesday production would rise in the second half of the year when the weather was expected to improve.
Thursday, May 19, 2011
20110519 1832 FCPO EOD Daily Chart Study.
Bollinger band reading : little upside biased.
MACD Histrogram : rising, buyer taking exposure.
Support : 3350, 3300, 3270, 3250 level.
Resistance : 3420, 3450, 3470, 3500 level.
Comment :
FCPO closed recorded bigger gains with lower volume transacted ahead of tomorrow export data while soy oil overnight closed rallied higher and currently trading firmer.
Hopes for higher oversea demand from China plus firmer soy oil price factor driven today crude palm oil futures Aug 2011 contract to trade higher hitting 2 week high.
Daily chart formed an up doji bar candle with long lower shadow closed near upper Bollinger band level after market opened gap up, tested lower support level and surged higher to closed near the high of the day.
Technical chart reading suggesting an overall little upside biased market development potentially testing higher resistant level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20110519 1741 FKLI EOD Daily Chart Study.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : rising, buyer taking small exposure.
Support : 1530, 1515, 1500, 1485 level.
Resistance : 1540, 1550, 1565, 1580 level.
Comment :
FKLI closed recorded gain with decreasing volume changed hand doing 5 points discount compare to cash market that closed recorded small gain while regional markets having mixed development and overnight U.S. market closed higher.
Malaysia 4.6% GDP released yesterday showing some sign of economy slowing pace as inflation accelerate plus higher cost of borrowing after interest rate increased.
Daily chart formed the third doji bar candle position nearer to upper Bollinger band level after market opened higher, moved upwards tested upper Bollinger band resistance level and traded range bound to closed near opening price.
Technical reading turned to suggesting a side way range bound little upside biased market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20110519 1716 Global Commodities Related News.
Oil rises on unexpected drop in U.S. crude stocks, Canada outage
SINGAPORE, May 19 (Reuters) - Oil rose on Thursday for a second session as an unexpected drop in crude inventories in the United States helped prices rebound while wildfires in Alberta threatened Canadian supply. "The EIA data was very unexpected as U.S. crude inventories have been rising. It gave prices a bit of a kick-along," said Ben Le Brun, a Sydney-based markets analyst at CMC Markets.
Wheat dips from 3-week top, corn rises for 6th day
SINGAPORE, May 19(Reuters) - U.S. wheat climbed to a three-week top on Thursday before giving up gains to fall 1 percent, while corn rose for a 6th straight session as adverse crop weather across top exporters Europe and the United States threatened to curb grain supplies. "The usual time to finish corn planting is over, farmers are trying to speed it up but the weather is not helping," said Ker Chung Yang, investment analyst at Phillip Futures in Singapore. "Even for soybeans, the time seems to be running out."
China's 2010 corn harvest at record 177.25 mln T - Stats bureau
BEIJING, May 19 (Reuters) - China's 2010 corn harvest was at a record 177.25 million tonnes, according to figures published by the National Bureau of Statistics on Thursday.
The figure was much higher than earlier estimate by the China National Grain and Oils Information Center (CNGOIC), which put at 172.5 million tonnes.
Argentine grains port set to reopen after protest
BUENOS AIRES, May 18 (Reuters) - Protesters blocked access to Argentina's third-biggest grains port but were expected to lift the demonstration later Wednesday, allowing operations to resume, a Quequen port official said.
Local residents carrying protest signs picketed around the port for a third day, calling for changes to municipal boundaries and autonomy for Quequen.
Brazil's mid cocoa crop gets off to eager start
SAO PAULO, May 18 (Reuters) - Arrivals of cocoa from Brazil's main cocoa state Bahia, rose in the last week as the mid crop gets off to a strong start, while rains hindered deliveries in other states, Bahia Commercial Association data showed.
Total Brazilian cocoa arrivals, totaled 86,793 60-kg bags from May 9-15, 2011 compared with 34,542 bags by one week ago.
Canada to lift wheat monopoly in 2012-minister
OTTAWA, May 18 (Reuters) - Canada's agriculture minister said on Wednesday that the Conservative government will probably introduce legislation this autumn to end the Canadian Wheat Board's marketing monopoly on wheat and barley.
The legislation would take effect in August 2012, the beginning of the 2012-13 crop marketing year, said Gerry Ritz, shortly after Prime Minister Stephen Harper said Ritz would stay as agriculture minister in Harper's new cabinet.
US ethanol production up, near mid-March high
KANSAS CITY, Mo., May 18 (Reuters) - U.S. ethanol production rose 4.4 percent in the latest week, the government said on Wednesday, reversing a downward trend.
Ethanol output totaled 900,000 barrels per day (bpd) for the week ended May 13, up 38,000 bpd from the prior week, the Energy Information Administration said.
Analyst sees 11.5 pct drop in French wheat crop
PARIS, May 18 (Reuters) - A three-month drought that has scorched French wheat crops this year led analyst Agritel to forecast that the country's output could fall by 11.5 percent from last year's total to 31.7 million tonnes.
In its first estimate for the 2011/2012 harvest, the French analyst said on Wednesday France's average wheat crop yield could dip by 13 percent to 6.31 tonnes per hectare, against 7.25 tonnes last year. This would not be compensated by a 2 percent rise in area at just over 5 million hectares.
India's cane, sugar output seen up 7-10 pct in 2011/12
NEW YORK, May 18 (Reuters) - India's sugar cane plantings and production in 2011/12 may increase from 7 to 10 percent, the director general of the Indian Sugar Mills Association (ISMA) said Wednesday.
Abinash Verma told delegates at the one-day International Sugar Organization-Datagro conference that Indian cane plantings last year reached 4.97 million hectares.
German farmers see 8.2 pct fall in 2011 grain crop
HAMBURG, May 18 (Reuters) - Germany's 2011 total grain crop is likely to fall 8.2 percent on the year to 40.7 million tonnes as dry weather has cut yields, the German Farm Cooperatives Association said on Wednesday in its new harvest forecast.
This was down on its previous estimate of 44.1 million tonnes for grains of all types in April.
Colombia holds '11 coffee crop estimate despite rains
BOGOTA, May 18 (Reuters) - Colombia's coffee federation said it would maintain its forecast for 2011 production at between 9 million and 9.5 million 60-kg bags despite torrential rains that have battered coffee farms for months.
Coffee exports fell in April due to the rains. But the federation's head Luis Genaro Munoz said on Wednesday production would rise in the second half of the year when the weather was expected to improve.
London copper extends gains, Shanghai up 1.3 pct
SINGAPORE, May 19 (Reuters) - London copper edged up on Thursday, extending gains from the previous session when it rose the most in two months, aided by a softer dollar ahead of key U.S. economic data due later in the day.
"The base metals market is taking heart from the statements released by the U.S. overnight, which led to Europe and the U.S. closing positively," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.
Silver extends gains, gold steady on weak dollar
SINGAPORE, May 19 (Reuters) - Silver gained for a third straight session on Thursday and gold steadied, as a softer dollar and rising oil prices continued to support sentiment a day after commodities notched up their biggest gain in two months. "We are seeing signs of bottoming-out in gold as the dollar has weakened, but $1,500 remains a very contested level," said Li Ning, an analyst at Shanghai CIFCO Futures.
Venezuela gold output slumps, state co seeks bailout
CARACAS, May 18 (Reuters) - Production at Venezuela's state-run gold miner plummeted last year and the company is seeking a government bailout of $70 million, in the latest example of trouble in the OPEC nation's public sector industry.
Socialist President Hugo Chavez has for years vowed to develop vast gold deposits in jungles south of the Orinoco river, but his plans to use Russian and Chinese capital to expand the industry have so far not come to much.
Dollar falls, commodities clamber up
SINGAPORE, May 19 (Reuters) - The dollar broke lower on Thursday, with funds sensing the rally this month has ended and expectations rising that commodity prices have resumed an uptrend, pushing up equities in Asia's materials sector.
"If you look at the next few months, the euro could fall to around $1.35. But I guess it's difficult to sell the euro beyond $1.40 now, when there's talk that the European Central Bank could raise rates in July," said Minori Uchida, a senior analyst at the Bank of Tokyo-Mitsubishi UFJ in Tokyo.
Commods likely to recover after short correction-MF Global
SINGAPORE, May 18 (Reuters) - Commodity prices are likely to fall further in the next month or two before rebounding towards the end of the year as demand continues to grow, prompting MF Global to expand its presence in the sector, a senior company executive said.
Brokerage MF Global Holdings, with a market value of $1.4 billion, maintained its long-term bullish outlook for commodities and expected prices to rise 10-20 percent over the next 12 months from current levels due to a weaker dollar, rising global demand and gradual inventory tightening.
SINGAPORE, May 19 (Reuters) - Oil rose on Thursday for a second session as an unexpected drop in crude inventories in the United States helped prices rebound while wildfires in Alberta threatened Canadian supply. "The EIA data was very unexpected as U.S. crude inventories have been rising. It gave prices a bit of a kick-along," said Ben Le Brun, a Sydney-based markets analyst at CMC Markets.
Wheat dips from 3-week top, corn rises for 6th day
SINGAPORE, May 19(Reuters) - U.S. wheat climbed to a three-week top on Thursday before giving up gains to fall 1 percent, while corn rose for a 6th straight session as adverse crop weather across top exporters Europe and the United States threatened to curb grain supplies. "The usual time to finish corn planting is over, farmers are trying to speed it up but the weather is not helping," said Ker Chung Yang, investment analyst at Phillip Futures in Singapore. "Even for soybeans, the time seems to be running out."
China's 2010 corn harvest at record 177.25 mln T - Stats bureau
BEIJING, May 19 (Reuters) - China's 2010 corn harvest was at a record 177.25 million tonnes, according to figures published by the National Bureau of Statistics on Thursday.
The figure was much higher than earlier estimate by the China National Grain and Oils Information Center (CNGOIC), which put at 172.5 million tonnes.
Argentine grains port set to reopen after protest
BUENOS AIRES, May 18 (Reuters) - Protesters blocked access to Argentina's third-biggest grains port but were expected to lift the demonstration later Wednesday, allowing operations to resume, a Quequen port official said.
Local residents carrying protest signs picketed around the port for a third day, calling for changes to municipal boundaries and autonomy for Quequen.
Brazil's mid cocoa crop gets off to eager start
SAO PAULO, May 18 (Reuters) - Arrivals of cocoa from Brazil's main cocoa state Bahia, rose in the last week as the mid crop gets off to a strong start, while rains hindered deliveries in other states, Bahia Commercial Association data showed.
Total Brazilian cocoa arrivals, totaled 86,793 60-kg bags from May 9-15, 2011 compared with 34,542 bags by one week ago.
Canada to lift wheat monopoly in 2012-minister
OTTAWA, May 18 (Reuters) - Canada's agriculture minister said on Wednesday that the Conservative government will probably introduce legislation this autumn to end the Canadian Wheat Board's marketing monopoly on wheat and barley.
The legislation would take effect in August 2012, the beginning of the 2012-13 crop marketing year, said Gerry Ritz, shortly after Prime Minister Stephen Harper said Ritz would stay as agriculture minister in Harper's new cabinet.
US ethanol production up, near mid-March high
KANSAS CITY, Mo., May 18 (Reuters) - U.S. ethanol production rose 4.4 percent in the latest week, the government said on Wednesday, reversing a downward trend.
Ethanol output totaled 900,000 barrels per day (bpd) for the week ended May 13, up 38,000 bpd from the prior week, the Energy Information Administration said.
Analyst sees 11.5 pct drop in French wheat crop
PARIS, May 18 (Reuters) - A three-month drought that has scorched French wheat crops this year led analyst Agritel to forecast that the country's output could fall by 11.5 percent from last year's total to 31.7 million tonnes.
In its first estimate for the 2011/2012 harvest, the French analyst said on Wednesday France's average wheat crop yield could dip by 13 percent to 6.31 tonnes per hectare, against 7.25 tonnes last year. This would not be compensated by a 2 percent rise in area at just over 5 million hectares.
India's cane, sugar output seen up 7-10 pct in 2011/12
NEW YORK, May 18 (Reuters) - India's sugar cane plantings and production in 2011/12 may increase from 7 to 10 percent, the director general of the Indian Sugar Mills Association (ISMA) said Wednesday.
Abinash Verma told delegates at the one-day International Sugar Organization-Datagro conference that Indian cane plantings last year reached 4.97 million hectares.
German farmers see 8.2 pct fall in 2011 grain crop
HAMBURG, May 18 (Reuters) - Germany's 2011 total grain crop is likely to fall 8.2 percent on the year to 40.7 million tonnes as dry weather has cut yields, the German Farm Cooperatives Association said on Wednesday in its new harvest forecast.
This was down on its previous estimate of 44.1 million tonnes for grains of all types in April.
Colombia holds '11 coffee crop estimate despite rains
BOGOTA, May 18 (Reuters) - Colombia's coffee federation said it would maintain its forecast for 2011 production at between 9 million and 9.5 million 60-kg bags despite torrential rains that have battered coffee farms for months.
Coffee exports fell in April due to the rains. But the federation's head Luis Genaro Munoz said on Wednesday production would rise in the second half of the year when the weather was expected to improve.
London copper extends gains, Shanghai up 1.3 pct
SINGAPORE, May 19 (Reuters) - London copper edged up on Thursday, extending gains from the previous session when it rose the most in two months, aided by a softer dollar ahead of key U.S. economic data due later in the day.
"The base metals market is taking heart from the statements released by the U.S. overnight, which led to Europe and the U.S. closing positively," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.
Silver extends gains, gold steady on weak dollar
SINGAPORE, May 19 (Reuters) - Silver gained for a third straight session on Thursday and gold steadied, as a softer dollar and rising oil prices continued to support sentiment a day after commodities notched up their biggest gain in two months. "We are seeing signs of bottoming-out in gold as the dollar has weakened, but $1,500 remains a very contested level," said Li Ning, an analyst at Shanghai CIFCO Futures.
Venezuela gold output slumps, state co seeks bailout
CARACAS, May 18 (Reuters) - Production at Venezuela's state-run gold miner plummeted last year and the company is seeking a government bailout of $70 million, in the latest example of trouble in the OPEC nation's public sector industry.
Socialist President Hugo Chavez has for years vowed to develop vast gold deposits in jungles south of the Orinoco river, but his plans to use Russian and Chinese capital to expand the industry have so far not come to much.
Dollar falls, commodities clamber up
SINGAPORE, May 19 (Reuters) - The dollar broke lower on Thursday, with funds sensing the rally this month has ended and expectations rising that commodity prices have resumed an uptrend, pushing up equities in Asia's materials sector.
"If you look at the next few months, the euro could fall to around $1.35. But I guess it's difficult to sell the euro beyond $1.40 now, when there's talk that the European Central Bank could raise rates in July," said Minori Uchida, a senior analyst at the Bank of Tokyo-Mitsubishi UFJ in Tokyo.
Commods likely to recover after short correction-MF Global
SINGAPORE, May 18 (Reuters) - Commodity prices are likely to fall further in the next month or two before rebounding towards the end of the year as demand continues to grow, prompting MF Global to expand its presence in the sector, a senior company executive said.
Brokerage MF Global Holdings, with a market value of $1.4 billion, maintained its long-term bullish outlook for commodities and expected prices to rise 10-20 percent over the next 12 months from current levels due to a weaker dollar, rising global demand and gradual inventory tightening.
20110519 1209 Global Market & Commodities Related News.
GLOBAL MARKETS: Commodities clamber up, giving hope to equity bulls
SINGAPORE, May 19 (Reuters) - - Expectations that commodity prices have resumed an uptrend pushed up equities in Asia's materials sector on Thursday and let off some steam from the dollar's rally this month.
Investors have been struggling to find a common theme in financial markets weeks after a series of routs in the commodities market led to a big reduction of risky assets in portfolios and economic data out of the United States and China flashing mixed signals.
OIL: Crude steady after surging above $100
TOKYO, May 19 (Reuters) - U.S. crude futures stood little changed on Thursday after surging more than 3 percent to above $100 a day earlier on the back of a surge across commodities markets following a recent selling spree.
Wednesday's rise was supported after the U.S. Energy Information Administration reported an unexpected dip in U.S. crude oil inventories and a large drop of 1.6 million barrels in stockpiles at the key Cushing, Oklahoma, delivery point for the U.S. oil futures contract.
NATURAL GAS: Natural gas ends up slightly with crude, technicals
NEW YORK, May 18 (Reuters) - U.S. natural gas futures ended slightly higher on Wednesday, rebounding on a strong rally in crude and some technical buying after Tuesday's sharp sell-off and ahead of a weekly inventory report due out on Thursday.
"I think the crude rally was supportive (for gas), and it looks like some heat comes back (in Texas) which should support cash. I wouldn't want to be short here," a Texas-based trader, noting crude gained more than $3 a barrel on Wednesday.
EUROCOAL: July ARA bids rise by $2/T to nearly $122
LONDON, May 18 (Reuters) - Prompt European coal prices rose by around $2.00 a tonne on Wednesday in line with oil's gains.
"Oil firmed a little and that's given the market some direction but there are still few bids and offers and few trades to show where current value lies," one trader said.
COMMODITIES: Oil, wheat fuel mkt's biggest gain in 2 months
NEW YORK, May 18 (Reuters) - Commodities posted their biggest rise in two months on Wednesday, rebounding from a two-week slump with buyers lured in by lower-than-expected U.S. oil stocks and poor crop weather in the United States and Europe.
"These markets should never had gotten punished in the first place," said Sean McGillivray, vice president and head of asset allocation for Great Pacific Wealth Management in Oregon.
SINGAPORE, May 19 (Reuters) - - Expectations that commodity prices have resumed an uptrend pushed up equities in Asia's materials sector on Thursday and let off some steam from the dollar's rally this month.
Investors have been struggling to find a common theme in financial markets weeks after a series of routs in the commodities market led to a big reduction of risky assets in portfolios and economic data out of the United States and China flashing mixed signals.
OIL: Crude steady after surging above $100
TOKYO, May 19 (Reuters) - U.S. crude futures stood little changed on Thursday after surging more than 3 percent to above $100 a day earlier on the back of a surge across commodities markets following a recent selling spree.
Wednesday's rise was supported after the U.S. Energy Information Administration reported an unexpected dip in U.S. crude oil inventories and a large drop of 1.6 million barrels in stockpiles at the key Cushing, Oklahoma, delivery point for the U.S. oil futures contract.
NATURAL GAS: Natural gas ends up slightly with crude, technicals
NEW YORK, May 18 (Reuters) - U.S. natural gas futures ended slightly higher on Wednesday, rebounding on a strong rally in crude and some technical buying after Tuesday's sharp sell-off and ahead of a weekly inventory report due out on Thursday.
"I think the crude rally was supportive (for gas), and it looks like some heat comes back (in Texas) which should support cash. I wouldn't want to be short here," a Texas-based trader, noting crude gained more than $3 a barrel on Wednesday.
EUROCOAL: July ARA bids rise by $2/T to nearly $122
LONDON, May 18 (Reuters) - Prompt European coal prices rose by around $2.00 a tonne on Wednesday in line with oil's gains.
"Oil firmed a little and that's given the market some direction but there are still few bids and offers and few trades to show where current value lies," one trader said.
COMMODITIES: Oil, wheat fuel mkt's biggest gain in 2 months
NEW YORK, May 18 (Reuters) - Commodities posted their biggest rise in two months on Wednesday, rebounding from a two-week slump with buyers lured in by lower-than-expected U.S. oil stocks and poor crop weather in the United States and Europe.
"These markets should never had gotten punished in the first place," said Sean McGillivray, vice president and head of asset allocation for Great Pacific Wealth Management in Oregon.
20110519 1027 Renewable Energy Related News.
Spain's Gamesa unit gets $2 bln Caparo order in India
MUMBAI, May 17 (Reuters) - Spanish wind turbine maker Gamesa's Indian unit said on Tuesday it has secured an order worth about $2 billion from Caparo Energy's Indian unit to supply and commission 2,000 megawatts of turbine capacity to be set up in the country.
The deal, which will commence in 2012 with about 150 MW during the first phase, will be spread over the next six years, the companies said in a statement.
Trina margin forecast sparks solar sell-off
LOS ANGELES, May 17 (Reuters) - Chinese solar panel maker Trina Solar Ltd said profit margins in the current quarter would be hurt by a rise in global inventories, sending its shares to a five-month low and sparking a broad sell-off in solar stocks.
Trina, which also reported a lower-than-expected first-quarter profit on Tuesday, warned last week that shipments in the January-March period would miss previous estimates by 10 percent because of a cut in solar power subsidies in Italy, which has hampered demand and sent solar panel makers' inventories climbing.
Spanish rain adequate in run-up to grain harvest
MADRID, May 17 (Reuters) - Spanish rainfall was below average last week, according to the latest official data on Tuesday, but farmers say it has been enough to allow the winter wheat and barley harvest to develop.
Total water stocks declined by 0.2 percent since last week, but at 82.4 percent of capacity were still comfortably above a 10-year average of 68 percent.
N.J. opens window for offshore wind power applications
NEW YORK, May 17 (Reuters) - New Jersey opened the window for applications to build what could be the nation's first offshore wind power projects.
There are currently no offshore wind projects in U.S. waters, but several companies in many states have been jockeying for years to be the first to build such a wind farm.
Gamesa gets order from Caparo for wind projects in India
MUMBAI, May 17 (Reuters) - The Indian unit of Spanish wind turbine maker Gamesa said on Tuesday it has received an order from Caparo Energy's Indian unit to supply and commission 2,000 megawatts of turbine capacity for wind power projects to be set up in the country.
The supply contract will commence in 2012, starting with around 150 megawatts in the first phase, and will span over the next six years, it said in a statement.
Green energy, rail freight to drive growth at Stella Jones
BANGALORE, May 13 (Reuters) - Stella Jones , which makes railway ties and treated wood utility poles for electricity and telecom companies, expects green energy, increased rail freight, and mining activity to boost results this year, its CEO said.
The company, which remained profitable while North America was reeling under the recession, expects industry demand for treated wood products to increase about 5 percent this year.
Canadian Solar inks sales deal with Saferay
May 16 (Reuters) - Canadian Solar Inc said it has signed a deal to sell 81 megawatts (MW) of solar modules to Saferay GmbH for projects in Germany, the world's largest solar market.
The solar panel maker said delivery had already commenced and that it expects to complete it before the end of the third quarter.
Solar plane makes maiden international flight
BRUSSELS, May 13 (Reuters) - A solar energy plane began the world's first international flight powered by the sun on Friday to show the potential for pollution-free air travel.
The Solar Impulse took off from an airfield at Payerne in western Switzerland on Friday morning and was due to land at Brussels airport 12 hours later.
First Solar power plants near U.S. loan decision
NEW YORK, May 12 (Reuters) - Three of First Solar Inc's largest solar power plants are moving closer to winning U.S. government loan guarantees under a program that could vastly expand the country's use of the clean energy source.
According to letters issued by the U.S. Energy Department on May 10 and posted on First Solar's website, the company's planned projects, with a total capacity of more than 1,300 megawatts, remain candidates to win the government commitments that would enable them to be constructed.
U.S. ops boost SolarWorld, Q-Cells hurt by Europe
FRANKFURT, May 12 (Reuters) - Sharply contrasting first-quarter results at two of Germany's top solar companies showed the importance of a strong presence in the United States as subsidies decline at home.
German solar company Q-Cells cut its sales outlook after lower subsidies, weak demand, overcapacities and pricing pressure in European markets hurt first-quarter earnings.
Bosnia hydro plants to get 120 mln euro German loan
SARAJEVO, May 11 (Reuters) - Germany and Bosnia on Wednesday signed a deal on a 120 million euro ($172.7 million) loan to fund construction of two hydro-power plants in the Balkan country.
Bosnia's Finance Minister Dragan Vrankic said 70 million euros of the loan from Germany will be used to build a 70 megawatt hydro-power plant on the Cetina river in southwestern Bosnia with an annual output of 95 gigawatt-hours.
China WindPower says seeking solar thermal partners
HONG KONG, May 11 (Reuters) - China WindPower Group Ltd , the largest non-state-owned wind farm developer in the mainland, is looking for partners to build solar thermal power projects in China, its director said on Wednesday, banking on a boom in solar demand as the country looks to strengthen support for clean energy.
Solar thermal energy was still at an early stage of development in China, but the company was working to obtain exclusive rights to develop projects in provinces, eyeing local and foreign companies as potential partners, China WindPower Executive Director Samantha Ko told Reuters.
MUMBAI, May 17 (Reuters) - Spanish wind turbine maker Gamesa's Indian unit said on Tuesday it has secured an order worth about $2 billion from Caparo Energy's Indian unit to supply and commission 2,000 megawatts of turbine capacity to be set up in the country.
The deal, which will commence in 2012 with about 150 MW during the first phase, will be spread over the next six years, the companies said in a statement.
Trina margin forecast sparks solar sell-off
LOS ANGELES, May 17 (Reuters) - Chinese solar panel maker Trina Solar Ltd said profit margins in the current quarter would be hurt by a rise in global inventories, sending its shares to a five-month low and sparking a broad sell-off in solar stocks.
Trina, which also reported a lower-than-expected first-quarter profit on Tuesday, warned last week that shipments in the January-March period would miss previous estimates by 10 percent because of a cut in solar power subsidies in Italy, which has hampered demand and sent solar panel makers' inventories climbing.
Spanish rain adequate in run-up to grain harvest
MADRID, May 17 (Reuters) - Spanish rainfall was below average last week, according to the latest official data on Tuesday, but farmers say it has been enough to allow the winter wheat and barley harvest to develop.
Total water stocks declined by 0.2 percent since last week, but at 82.4 percent of capacity were still comfortably above a 10-year average of 68 percent.
N.J. opens window for offshore wind power applications
NEW YORK, May 17 (Reuters) - New Jersey opened the window for applications to build what could be the nation's first offshore wind power projects.
There are currently no offshore wind projects in U.S. waters, but several companies in many states have been jockeying for years to be the first to build such a wind farm.
Gamesa gets order from Caparo for wind projects in India
MUMBAI, May 17 (Reuters) - The Indian unit of Spanish wind turbine maker Gamesa said on Tuesday it has received an order from Caparo Energy's Indian unit to supply and commission 2,000 megawatts of turbine capacity for wind power projects to be set up in the country.
The supply contract will commence in 2012, starting with around 150 megawatts in the first phase, and will span over the next six years, it said in a statement.
Green energy, rail freight to drive growth at Stella Jones
BANGALORE, May 13 (Reuters) - Stella Jones , which makes railway ties and treated wood utility poles for electricity and telecom companies, expects green energy, increased rail freight, and mining activity to boost results this year, its CEO said.
The company, which remained profitable while North America was reeling under the recession, expects industry demand for treated wood products to increase about 5 percent this year.
Canadian Solar inks sales deal with Saferay
May 16 (Reuters) - Canadian Solar Inc said it has signed a deal to sell 81 megawatts (MW) of solar modules to Saferay GmbH for projects in Germany, the world's largest solar market.
The solar panel maker said delivery had already commenced and that it expects to complete it before the end of the third quarter.
Solar plane makes maiden international flight
BRUSSELS, May 13 (Reuters) - A solar energy plane began the world's first international flight powered by the sun on Friday to show the potential for pollution-free air travel.
The Solar Impulse took off from an airfield at Payerne in western Switzerland on Friday morning and was due to land at Brussels airport 12 hours later.
First Solar power plants near U.S. loan decision
NEW YORK, May 12 (Reuters) - Three of First Solar Inc's largest solar power plants are moving closer to winning U.S. government loan guarantees under a program that could vastly expand the country's use of the clean energy source.
According to letters issued by the U.S. Energy Department on May 10 and posted on First Solar's website, the company's planned projects, with a total capacity of more than 1,300 megawatts, remain candidates to win the government commitments that would enable them to be constructed.
U.S. ops boost SolarWorld, Q-Cells hurt by Europe
FRANKFURT, May 12 (Reuters) - Sharply contrasting first-quarter results at two of Germany's top solar companies showed the importance of a strong presence in the United States as subsidies decline at home.
German solar company Q-Cells cut its sales outlook after lower subsidies, weak demand, overcapacities and pricing pressure in European markets hurt first-quarter earnings.
Bosnia hydro plants to get 120 mln euro German loan
SARAJEVO, May 11 (Reuters) - Germany and Bosnia on Wednesday signed a deal on a 120 million euro ($172.7 million) loan to fund construction of two hydro-power plants in the Balkan country.
Bosnia's Finance Minister Dragan Vrankic said 70 million euros of the loan from Germany will be used to build a 70 megawatt hydro-power plant on the Cetina river in southwestern Bosnia with an annual output of 95 gigawatt-hours.
China WindPower says seeking solar thermal partners
HONG KONG, May 11 (Reuters) - China WindPower Group Ltd , the largest non-state-owned wind farm developer in the mainland, is looking for partners to build solar thermal power projects in China, its director said on Wednesday, banking on a boom in solar demand as the country looks to strengthen support for clean energy.
Solar thermal energy was still at an early stage of development in China, but the company was working to obtain exclusive rights to develop projects in provinces, eyeing local and foreign companies as potential partners, China WindPower Executive Director Samantha Ko told Reuters.
20110519 1026 Biofuels Related News.
Brazil sugar shipments slow but improving
SAO PAULO, May 17 (Reuters) - The number of ships loading, waiting or arriving to export sugar from Brazil's two main ports is growing and should let up in the coming days, shipping agencies said.
The lineup of vessels reached 58 on Tuesday, slightly up from 55 a week ago. Although backlogs to haul sugar from the world's largest producer of the sweetener are not uncommon, these numbers are not normal for this early in the season.
Brazil ethanol prices plunge as supplies hit market
SAO PAULO, May 16 (Reuters) - Ethanol prices plummeted last week on the Brazilian market, data from Cepea/Esalq think tank showed on Monday, as harvesting of the new cane crop advanced and mills favored production of the fuel over sugar.
Prices of ethanol hit record highs earlier this year during interharvest in the country's main center-south cane region, forcing authorities to take measures to boost supplies in the future.
Dutch exchange plans world's first biomass product
LONDON, May 16 (Reuters) - The APX-Endex energy exchange and the Port of Rotterdam will launch an exchange-traded wood fuel product by the end of the year, the first of its kind, the exchange told Reuters on Monday.
The global biomass market is growing as a result of emerging economy demand and European Union targets to replace fossil fuels with renewable sources of energy, but there are still few international pricing benchmarks.
German motorists shun new biofuel blend
HAMBURG, May 13 (Reuters) - German drivers are reluctant to buy a new gasoline blend with a higher biofuel content, the country's oil industry association said on Friday.
Germany this year raised the maximum permitted level of bioethanol blended in gasoline to 10 percent from 5 percent as part of Germany's programme to protect the environment by cutting CO2 emissions.
Ensus to temporarily shut UK bioethanol plant
LONDON, May 13 (Reuters) - Ensus said on Friday it is to temporarily shut down Britain's largest bioethanol plant from the end of this month, citing difficult market conditions.
The company, in a statement, cited slow implementation of a European Union directive on renewable energy and competition from imports, particularly from the United States.
Bioethanol may win in crunch time for EU biofuels
BRUSSELS/SEVILLE, May 13 (Reuters) - A divisive European debate over the green credentials of biofuels has stalled investment, but the stalemate may soon be over for advanced biofuels and some types of bioethanol.
The debate over biodiesel, however, looks set to rage on.
Brazil sugar output down by rains, ethanol priority
SAO PAULO, May 12 (Reuters) - Sugar output in Brazil's center-south in 2011/12 through May 1 fell 69 percent from a year ago, as rains through mid-April hindered cane harvesting and mills prioritized ethanol production.
Sugar production totaled 795,000 tonnes, down from 2.55 million tonnes in the same period last season, when harvesting started exceptionally early, data from the sugar cane industry association Unica showed on Thursday.
Brasil Ecodiesel rejects Vanguarda buy - report
SAO PAULO, May 12 (Reuters) - The board of Brazilian biodiesel producer Brasil Ecodiesel rejected a proposal to buy local farming group Vanguarda Participacoes, a local newspaper reported on Thursday.
The deal would have created one of the country's biggest farming groups, with estimated revenues of 1.6 billion reais ($981 million) in 2011, Valor Economico newspaper reported, citing people connected to Brasil Ecodiesel.
Global sugar surplus to surge, Brazil key to price-Kingsman
SINGAPORE, May 12 (Reuters) - Global sugar prices need to drop below the domestic price of ethanol in Brazil, top producer of the sweetener, to curb output at a time when the surplus on world markets is expected to surge, the Kingsman consultancy said on Thursday.
Kingsman raised its 2011/12 (April/March) global sugar surplus estimate to 10.575 million tonnes, up from a previous forecast of 5.607 million tonnes, after a deficit of 0.1 million a year ago. It also lifted its global sugar output estimate and cut its consumption outlook for the period.
US ethanol exports helped by cheap corn vs sugar
SEVILLE, Spain, May 12 (Reuters) - U.S. ethanol producers expect to dominate the world market in coming years due to high prices for sugar, the feedstock in major producer Brazil, an industry spokesman said on Thursday.
Bon Dinneen, president of the Renewable Fuels Association, said U.S. ethanol was competitive because it was made from maize rather than sugar.
US ethanol production down, corn usage lags outlook
KANSAS CITY, May 11 (Reuters) - U.S. ethanol production fell again in the latest week, the government said on Wednesday, continuing a downward trend.
Ethanol output totaled 862,000 barrels per day (bpd) for the week ended May 6, down 13,000 bpd from the prior week, the Energy Information Administration said.
SAO PAULO, May 17 (Reuters) - The number of ships loading, waiting or arriving to export sugar from Brazil's two main ports is growing and should let up in the coming days, shipping agencies said.
The lineup of vessels reached 58 on Tuesday, slightly up from 55 a week ago. Although backlogs to haul sugar from the world's largest producer of the sweetener are not uncommon, these numbers are not normal for this early in the season.
Brazil ethanol prices plunge as supplies hit market
SAO PAULO, May 16 (Reuters) - Ethanol prices plummeted last week on the Brazilian market, data from Cepea/Esalq think tank showed on Monday, as harvesting of the new cane crop advanced and mills favored production of the fuel over sugar.
Prices of ethanol hit record highs earlier this year during interharvest in the country's main center-south cane region, forcing authorities to take measures to boost supplies in the future.
Dutch exchange plans world's first biomass product
LONDON, May 16 (Reuters) - The APX-Endex energy exchange and the Port of Rotterdam will launch an exchange-traded wood fuel product by the end of the year, the first of its kind, the exchange told Reuters on Monday.
The global biomass market is growing as a result of emerging economy demand and European Union targets to replace fossil fuels with renewable sources of energy, but there are still few international pricing benchmarks.
German motorists shun new biofuel blend
HAMBURG, May 13 (Reuters) - German drivers are reluctant to buy a new gasoline blend with a higher biofuel content, the country's oil industry association said on Friday.
Germany this year raised the maximum permitted level of bioethanol blended in gasoline to 10 percent from 5 percent as part of Germany's programme to protect the environment by cutting CO2 emissions.
Ensus to temporarily shut UK bioethanol plant
LONDON, May 13 (Reuters) - Ensus said on Friday it is to temporarily shut down Britain's largest bioethanol plant from the end of this month, citing difficult market conditions.
The company, in a statement, cited slow implementation of a European Union directive on renewable energy and competition from imports, particularly from the United States.
Bioethanol may win in crunch time for EU biofuels
BRUSSELS/SEVILLE, May 13 (Reuters) - A divisive European debate over the green credentials of biofuels has stalled investment, but the stalemate may soon be over for advanced biofuels and some types of bioethanol.
The debate over biodiesel, however, looks set to rage on.
Brazil sugar output down by rains, ethanol priority
SAO PAULO, May 12 (Reuters) - Sugar output in Brazil's center-south in 2011/12 through May 1 fell 69 percent from a year ago, as rains through mid-April hindered cane harvesting and mills prioritized ethanol production.
Sugar production totaled 795,000 tonnes, down from 2.55 million tonnes in the same period last season, when harvesting started exceptionally early, data from the sugar cane industry association Unica showed on Thursday.
Brasil Ecodiesel rejects Vanguarda buy - report
SAO PAULO, May 12 (Reuters) - The board of Brazilian biodiesel producer Brasil Ecodiesel rejected a proposal to buy local farming group Vanguarda Participacoes, a local newspaper reported on Thursday.
The deal would have created one of the country's biggest farming groups, with estimated revenues of 1.6 billion reais ($981 million) in 2011, Valor Economico newspaper reported, citing people connected to Brasil Ecodiesel.
Global sugar surplus to surge, Brazil key to price-Kingsman
SINGAPORE, May 12 (Reuters) - Global sugar prices need to drop below the domestic price of ethanol in Brazil, top producer of the sweetener, to curb output at a time when the surplus on world markets is expected to surge, the Kingsman consultancy said on Thursday.
Kingsman raised its 2011/12 (April/March) global sugar surplus estimate to 10.575 million tonnes, up from a previous forecast of 5.607 million tonnes, after a deficit of 0.1 million a year ago. It also lifted its global sugar output estimate and cut its consumption outlook for the period.
US ethanol exports helped by cheap corn vs sugar
SEVILLE, Spain, May 12 (Reuters) - U.S. ethanol producers expect to dominate the world market in coming years due to high prices for sugar, the feedstock in major producer Brazil, an industry spokesman said on Thursday.
Bon Dinneen, president of the Renewable Fuels Association, said U.S. ethanol was competitive because it was made from maize rather than sugar.
US ethanol production down, corn usage lags outlook
KANSAS CITY, May 11 (Reuters) - U.S. ethanol production fell again in the latest week, the government said on Wednesday, continuing a downward trend.
Ethanol output totaled 862,000 barrels per day (bpd) for the week ended May 6, down 13,000 bpd from the prior week, the Energy Information Administration said.
20110519 1025 Local & Global Economic Related News.
Malaysia: Growth slows as faster inflation adds rate pressure
Malaysia’s growth unexpectedly eased last quarter as manufacturing and services moderated, a slowing that has yet to pull down inflation and remove pressure on the central bank to keep raising interest rates. Gross domestic product increased 4.6% in the three months through March from a year earlier, after expanding 4.8% in the previous quarter, the central bank said in a statement in Kuala Lumpur today. The median estimate of 21 economists surveyed by Bloomberg News was for a 4.9 percent gain. (Bloomberg)
Malaysia: Falls six notch in global competitive ranking survey
Malaysia fell six notches in a global competitive ranking survey despite attempts to drive home efficiency through various programmes, including the Economics Transformation Programme (ETP). The 2011 World Competitiveness Rankings by Swiss-based International Institute for Management Development (IMD), which presents the year’s overall rankings for 59 economies covered by its World Competitiveness Yearbook, placed Malaysia at the 16th spot against the 10th spot of the year before. (MalaysianReserve)
UK: April unemployment claims rise most since January 2010
UK unemployment claims rose in April at the fastest pace since January 2010, underlining the fragility of the recovery as government spending cuts and accelerating inflation sap consumer confidence. Jobless benefit claims increased by 12,400 from March to 1.47m, the Office for National Statistics said today in London. The median forecast of 24 economists in a Bloomberg News Survey was for no change. Unemployment measured by International Labour Organization methods fell 36,000 to 2.46m people in the quarter through March. (Bloomberg)
UK: BOE voted 6-3 to hold rate on risks to consumer confidence
Bank of England policy makers voted 6-3 to keep interest rates on hold this month as the majority warned that tightening policy now could dampen consumer spending and hamper the recovery. Andrew Sentance maintained his call for a half-point increase in the key rate from a record low of 0.5% while Chief Economist Spencer Dale and Martin Weale continued a push for a quarter-point increase. Governor Mervyn King and the other five members of the Monetary Policy Committee voted for no change. Adam Posen kept up a call for more bond purchases. (Bloomberg)
EU: Europe construction output dropped for second month in March
European construction output dropped for a second month in March as declines in France, Portugal and Slovenia offset increasing production in Germany. Construction in the 17-nation euro region fell 0.3% from February, when it declined a revised 0.8%, the European Union’s statistics office in Luxembourg said today. From a year earlier, output decreased 4.9%. (Bloomberg)
Spain: Export gains drive first-quarter economic growth
Spanish exports continued to drive economic growth in the first quarter, offsetting a slump in domestic demand caused by the deepest austerity measures in three decades. Exports rose 5% from the previous three months, when they expanded 3.9%, and grew 11.2% from a year earlier, the National Statistics Institute in Madrid said today. Household spending was unchanged from the previous three months, when it increased 0.3%. The economy expanded 0.3% from the fourth quarter and 0.8% from a year earlier, INE said, confirming an initial estimate from May 13. (Bloomberg)
Chile: First-Quarter GDP grows at fastest pace since 1995
Chile’s economy expanded the most in 15 years in the first quarter, outpacing other major Latin American economies as consumer spending jumped and manufacturing recovered from the biggest earthquake in half a century. The economy grew 9.8% from a year earlier, the central bank wrote on its website today, matching the median estimate of 14 economists surveyed by Bloomberg. (Bloomberg)
U.S: Fed favors strategy of raising rates before selling assets. Federal Reserve policy makers began to coalesce last month on a strategy to reverse record monetary stimulus by first ending their reinvestment policy and later raising interest rates and selling assets. Almost all officials agreed that the "first step toward normalization" should be ceasing reinvestment of principal payments on mortgage debt that began in August, the Federal Open Market Committee said in records of its April 26-27 session. A majority preferred to sell the Fed's securities after raising short-term interest rates, and most wanted to put asset sales on a preannounced schedule while using federal-funds rate increases as an "active tool." (Source: Bloomberg)
Greece: ECB rejects restructuring in clash with policy makers. European Central Bank officials ruled out a Greek debt restructuring, clashing with political leaders over a solution to the sovereign financial crisis. "A Greek debt restructuring is not the appropriate way forward - it would create a catastrophe" because it would damage the banking system, ECB Executive Board member Juergen Stark said in Lagonissi, Greece. Fellow board member Lorenzo Bini Smaghi said in Milan that "a solution for reducing debt but not paying for it will not work." (Source: Bloomberg)
China: April new home prices rose from a year earlier in 67 of the 70 cities monitored by the government. Housing prices increased at a faster pace in smaller cities and slowed in major ones, data posted on the statistics bureau's website showed. New home prices in Urumqi, capital of far western Xinjiang province, posted the biggest gain, up 9.3% YoY last month, while prices in northern Mu Danjiang climbed 8.7% YoY. In the capital Beijing, prices rose 2.8% YoY in April, compared with 4.9% YoY in March, while those in Shanghai slowed to a 1.3% YoY gain. (Source: Bloomberg)
Australia: Wage growth slowed in the three months through March for a second straight quarter, giving the central bank scope to extend an interest-rate pause. The wage price index, which measures hourly pay rates excluding bonuses, advanced 0.8% QoQ from the fourth quarter, when it rose 1% QoQ, the statistics bureau said in Sydney. (Source: Bloomberg)
Malaysia’s growth unexpectedly eased last quarter as manufacturing and services moderated, a slowing that has yet to pull down inflation and remove pressure on the central bank to keep raising interest rates. Gross domestic product increased 4.6% in the three months through March from a year earlier, after expanding 4.8% in the previous quarter, the central bank said in a statement in Kuala Lumpur today. The median estimate of 21 economists surveyed by Bloomberg News was for a 4.9 percent gain. (Bloomberg)
Malaysia: Falls six notch in global competitive ranking survey
Malaysia fell six notches in a global competitive ranking survey despite attempts to drive home efficiency through various programmes, including the Economics Transformation Programme (ETP). The 2011 World Competitiveness Rankings by Swiss-based International Institute for Management Development (IMD), which presents the year’s overall rankings for 59 economies covered by its World Competitiveness Yearbook, placed Malaysia at the 16th spot against the 10th spot of the year before. (MalaysianReserve)
UK: April unemployment claims rise most since January 2010
UK unemployment claims rose in April at the fastest pace since January 2010, underlining the fragility of the recovery as government spending cuts and accelerating inflation sap consumer confidence. Jobless benefit claims increased by 12,400 from March to 1.47m, the Office for National Statistics said today in London. The median forecast of 24 economists in a Bloomberg News Survey was for no change. Unemployment measured by International Labour Organization methods fell 36,000 to 2.46m people in the quarter through March. (Bloomberg)
UK: BOE voted 6-3 to hold rate on risks to consumer confidence
Bank of England policy makers voted 6-3 to keep interest rates on hold this month as the majority warned that tightening policy now could dampen consumer spending and hamper the recovery. Andrew Sentance maintained his call for a half-point increase in the key rate from a record low of 0.5% while Chief Economist Spencer Dale and Martin Weale continued a push for a quarter-point increase. Governor Mervyn King and the other five members of the Monetary Policy Committee voted for no change. Adam Posen kept up a call for more bond purchases. (Bloomberg)
EU: Europe construction output dropped for second month in March
European construction output dropped for a second month in March as declines in France, Portugal and Slovenia offset increasing production in Germany. Construction in the 17-nation euro region fell 0.3% from February, when it declined a revised 0.8%, the European Union’s statistics office in Luxembourg said today. From a year earlier, output decreased 4.9%. (Bloomberg)
Spain: Export gains drive first-quarter economic growth
Spanish exports continued to drive economic growth in the first quarter, offsetting a slump in domestic demand caused by the deepest austerity measures in three decades. Exports rose 5% from the previous three months, when they expanded 3.9%, and grew 11.2% from a year earlier, the National Statistics Institute in Madrid said today. Household spending was unchanged from the previous three months, when it increased 0.3%. The economy expanded 0.3% from the fourth quarter and 0.8% from a year earlier, INE said, confirming an initial estimate from May 13. (Bloomberg)
Chile: First-Quarter GDP grows at fastest pace since 1995
Chile’s economy expanded the most in 15 years in the first quarter, outpacing other major Latin American economies as consumer spending jumped and manufacturing recovered from the biggest earthquake in half a century. The economy grew 9.8% from a year earlier, the central bank wrote on its website today, matching the median estimate of 14 economists surveyed by Bloomberg. (Bloomberg)
U.S: Fed favors strategy of raising rates before selling assets. Federal Reserve policy makers began to coalesce last month on a strategy to reverse record monetary stimulus by first ending their reinvestment policy and later raising interest rates and selling assets. Almost all officials agreed that the "first step toward normalization" should be ceasing reinvestment of principal payments on mortgage debt that began in August, the Federal Open Market Committee said in records of its April 26-27 session. A majority preferred to sell the Fed's securities after raising short-term interest rates, and most wanted to put asset sales on a preannounced schedule while using federal-funds rate increases as an "active tool." (Source: Bloomberg)
Greece: ECB rejects restructuring in clash with policy makers. European Central Bank officials ruled out a Greek debt restructuring, clashing with political leaders over a solution to the sovereign financial crisis. "A Greek debt restructuring is not the appropriate way forward - it would create a catastrophe" because it would damage the banking system, ECB Executive Board member Juergen Stark said in Lagonissi, Greece. Fellow board member Lorenzo Bini Smaghi said in Milan that "a solution for reducing debt but not paying for it will not work." (Source: Bloomberg)
China: April new home prices rose from a year earlier in 67 of the 70 cities monitored by the government. Housing prices increased at a faster pace in smaller cities and slowed in major ones, data posted on the statistics bureau's website showed. New home prices in Urumqi, capital of far western Xinjiang province, posted the biggest gain, up 9.3% YoY last month, while prices in northern Mu Danjiang climbed 8.7% YoY. In the capital Beijing, prices rose 2.8% YoY in April, compared with 4.9% YoY in March, while those in Shanghai slowed to a 1.3% YoY gain. (Source: Bloomberg)
Australia: Wage growth slowed in the three months through March for a second straight quarter, giving the central bank scope to extend an interest-rate pause. The wage price index, which measures hourly pay rates excluding bonuses, advanced 0.8% QoQ from the fourth quarter, when it rose 1% QoQ, the statistics bureau said in Sydney. (Source: Bloomberg)
20110519 1024 Malaysia Corporate Related News.
KLCI chart reading :
side way range bound little upside biased.
WCT bids for RM10bn projects to expand business
Construction and property outfit WCT Bhd has bid for projects worth more than RM10bn to expand its business and improve earnings. Chairman Datuk Ahmad Sufian said it has tendered for building and infrastructure projects in Malaysia, the Middle East and Vietnam. (BT)
WCT: Bids for RM2b construction projects. WCT Bhd hopes to secure at least RM2b worth of construction projects this year to replenish its current orderbook of RM3.7b. (Source: The Malaysian Reserve)
BCorp starts ops on region's largest sanitary landfill
Berjaya Corp (BCorp), through wholly-owned Berjaya Environmental Engineering (Foshan) Co Ltd, yesterday started operations on the Sanshui Bainikeng district sanitary landfill project, the largest in the region. The concession agreement for the RMB264m (RM123m) project was signed between Berjaya Environment Engineering and Construction Bureau of Sanshui district on 6 Feb 2009. Initial waste tipping fee or revenue is estimated at RMB123.50 (RM58) per tonne. Berjaya Environmental won the rights to build, operate, and maintain the landfill for 28 years and thereafter transfer the business to its China partner at no cost. (BT)
Latexx gets YTY merger proposal
Latexx Partners Bhd announced yesterday that it has received a letter from YTY Industry Holdings SB (YTY) which made an offer to merge its four wholly-owned subsidiaries with the former for RM1.37bn. In a filing to Bursa Malaysia, Latexx said the proposed merger would be carried out via the sale of YTY's entire equity interests in the subsidiaries to Latexx with 30% of the purchase price payable in cash. The balance is to be satisfied by the issuance of 382.2m new ordinary shares of 50 sen in Latexx, at an issue price of RM2.50 per share. On Monday, the company announced that a proposed buyout plan by Navis Asia VI management Company was aborted as both parties were unable to agree on definitive terms for the proposal. Earlier in January this year, Latexx had said that it had accepted an offer from Navis Asia to buy its entire business for RM852m or RM3.10 per share. (BT)
Genting Bhd: Genting Sg investing in natural resources ventures, Resorts World at Sentosa fined. Genting Singapores wholly owned Northspring Global Ltd would be paying USD60m for 68.63% of Goldnature Investments Ltd, an investment holding company with a 51% interest in British Virgin Island-incorporated (BVI)Montbella Ltd. BVI has a portfolio of interests in natural resource ventures. Separately, the Casino Regulatory Authority of Singapore (CRA) has imposed financial penalties totaling SGD 530,000 (RM1.3m) on Resorts World at Sentosa Pte Ltd for four breaches of the Casino Control Act and its regulations. (Source: The Edge Financial Daily, The Malaysian Reserve)
GenP: Buys GBD Holdings for RM40m. Genting Plantation Bhds (GENP) wholly owned subsidiary GP Overseas Ltd has acquired the entire stake of GBD Holdings Ltd for RM40m to venture into downstream activities related to palm oil. (Source: Bursa Malaysia)
F&N: Disposes creameries division. Fraser & Neave Holdings Bhd ( F&N) has disposed its entire ice-cream business for RM11.5m to further consolidate and grow its core canned milk business, generating a profit of RM2.9m. (Source: Bursa Malaysia)
Economics: BNM announced further liberalisation of the foreign exchange administration rules with regards to direct investment abroad, inter-company loans and trade financing effective 1 June 2011. The measures are:
Construction and property outfit WCT Bhd has bid for projects worth more than RM10bn to expand its business and improve earnings. Chairman Datuk Ahmad Sufian said it has tendered for building and infrastructure projects in Malaysia, the Middle East and Vietnam. (BT)
WCT: Bids for RM2b construction projects. WCT Bhd hopes to secure at least RM2b worth of construction projects this year to replenish its current orderbook of RM3.7b. (Source: The Malaysian Reserve)
BCorp starts ops on region's largest sanitary landfill
Berjaya Corp (BCorp), through wholly-owned Berjaya Environmental Engineering (Foshan) Co Ltd, yesterday started operations on the Sanshui Bainikeng district sanitary landfill project, the largest in the region. The concession agreement for the RMB264m (RM123m) project was signed between Berjaya Environment Engineering and Construction Bureau of Sanshui district on 6 Feb 2009. Initial waste tipping fee or revenue is estimated at RMB123.50 (RM58) per tonne. Berjaya Environmental won the rights to build, operate, and maintain the landfill for 28 years and thereafter transfer the business to its China partner at no cost. (BT)
Latexx gets YTY merger proposal
Latexx Partners Bhd announced yesterday that it has received a letter from YTY Industry Holdings SB (YTY) which made an offer to merge its four wholly-owned subsidiaries with the former for RM1.37bn. In a filing to Bursa Malaysia, Latexx said the proposed merger would be carried out via the sale of YTY's entire equity interests in the subsidiaries to Latexx with 30% of the purchase price payable in cash. The balance is to be satisfied by the issuance of 382.2m new ordinary shares of 50 sen in Latexx, at an issue price of RM2.50 per share. On Monday, the company announced that a proposed buyout plan by Navis Asia VI management Company was aborted as both parties were unable to agree on definitive terms for the proposal. Earlier in January this year, Latexx had said that it had accepted an offer from Navis Asia to buy its entire business for RM852m or RM3.10 per share. (BT)
Genting Bhd: Genting Sg investing in natural resources ventures, Resorts World at Sentosa fined. Genting Singapores wholly owned Northspring Global Ltd would be paying USD60m for 68.63% of Goldnature Investments Ltd, an investment holding company with a 51% interest in British Virgin Island-incorporated (BVI)Montbella Ltd. BVI has a portfolio of interests in natural resource ventures. Separately, the Casino Regulatory Authority of Singapore (CRA) has imposed financial penalties totaling SGD 530,000 (RM1.3m) on Resorts World at Sentosa Pte Ltd for four breaches of the Casino Control Act and its regulations. (Source: The Edge Financial Daily, The Malaysian Reserve)
GenP: Buys GBD Holdings for RM40m. Genting Plantation Bhds (GENP) wholly owned subsidiary GP Overseas Ltd has acquired the entire stake of GBD Holdings Ltd for RM40m to venture into downstream activities related to palm oil. (Source: Bursa Malaysia)
F&N: Disposes creameries division. Fraser & Neave Holdings Bhd ( F&N) has disposed its entire ice-cream business for RM11.5m to further consolidate and grow its core canned milk business, generating a profit of RM2.9m. (Source: Bursa Malaysia)
Economics: BNM announced further liberalisation of the foreign exchange administration rules with regards to direct investment abroad, inter-company loans and trade financing effective 1 June 2011. The measures are:
- Removal of the RM50m limit on investment in foreign currency assets by resident companies that meet the prudential requirements. The move basically frees up direct investment abroad (DIA) by Malaysian companies.
- Allowing resident companies to borrow any amount in Ringgit or foreign currency from their resident and non-resident non-bank related companies. This enables Malaysian companies to further enhance the efficient management of financial resources within a corporate group and provides greater flexibility on sources of competitive financing.
- Abolish the RM5m limit currently imposed on foreign currency trade financing obtained by residents from non-residents. In this regard, residents may obtain foreign currency borrowing, including foreign currency trade financing, up to the prevailing aggregate limit of RM100m for companies on a corporate group basis and RM10m for individuals. (Source: BNM)
20110519 1019 Global Market Related News.
DJIA chart reading : side way range bound little upside biased.
Hang Seng chart reading : correction range bound downside biased.
Asian Stocks Rise as Fed Signals Low Rates (Source: Bloomberg)
Asian stocks rose for a second straight day after the U.S. Federal Reserve signaled interest rates will remain low, and metals advanced on bets Chinese demand will escalate, boosting confidence in a global economic recovery. LG Electronics Inc. (066570), the world’s third-largest mobile phone maker, climbed 1.8 percent in Seoul. Canon Inc. (7751), the biggest manufacturer of cameras, gained 0.5 percent in Tokyo. BHP Billiton Ltd. (BHP), the No.1 global mining company and an Australian oil producer, rose 0.9 percent in Sydney as crude prices also jumped in New York. Rival Rio Tinto Group advanced 1.3 percent.
Fed Favors Exit Strategy of Higher Rates Before Asset Sales, Minutes Show (Source: Bloomberg)
Federal Reserve policy makers began to coalesce last month on a strategy to reverse record monetary stimulus by first ending their reinvestment policy and later raising interest rates and selling assets. Almost all officials agreed that the “first step toward normalization” should be ceasing reinvestment of principal payments on mortgage debt that began in August, the Federal Open Market Committee said in records of its April 26-27 session, released today in Washington. A majority preferred to sell the Fed’s securities after raising short-term interest rates, and most wanted to put asset sales on a preannounced schedule while using federal-funds rate increases as an “active tool.”
U.S. economic data suggests soft patch continues
WASHINGTON, May 17 (Reuters) - U.S. factory output slipped for the first time in 10 months in April as a shortage of parts from Japan crimped activity and home building slumped, showing the economy got off to a weak start in the second quarter.
Signs of lackluster economic activity were also evident in declining sales at Wal-Mart Stores , which said its customers were still living from paycheck to paycheck. Home Depot also reported a drop in sales while Hewlett-Packard cut its 2011 profit forecast.
U.S. factory, services revenue to rise in 2011 -ISM
NEW YORK, May 17 (Reuters) - The U.S. manufacturing and services sectors will continue to grow this year as revenues rise, but prices for materials are seen climbing further, according to an industry forecast released on Tuesday.
The Institute for Supply Management in its semi-annual forecast found purchasing and supply executives expect manufacturing revenue will rise 7.5 percent this year. That is modestly slower than the 7.9 percent rise seen last year.
Policy curbs ease China property inflation in April
BEIJING, May 18 (Reuters) - China's annual housing inflation slowed slightly in April with prices rising 4.3 percent, data showed on Wednesday, a further sign that forceful policy tightening is helping to cool exuberant price rises.
The gains in April compares with an annual 5.2 percent rise in March, and should assuage worries that the world's second-biggest economy faces an imminent collapse in its property market.
China Unlikely to Allow ’Jump’ in Yuan, Former Central Bank Adviser Says (Source: Bloomberg)
China is unlikely to allow a “jump” in the value of the yuan because it needs to protect jobs, said Fan Gang, a former adviser to the country’s central bank. There is also still “very strong” opposition in China for even a small revaluation, he said at a forum in Beijing today. “Big fluctuations in the exchange rate regime and big volatility will really kill China’s industries,” said Fan, who now heads the National Economic Research Institute of the China Reform Foundation. “A gradual approach will give Chinese companies some room, some time for adjustment.”
China Winning Big-Ship Deal May Threaten South Korea Grip: Freight Markets (Source: Bloomberg)
Yangzijiang Shipbuilding Holdings Ltd. (YZJ) may become the first Chinese yard to win an overseas order for 10,000-container vessels as the Asian nation challenges South Korea’s dominance in building more profitable types of ships. The shipbuilder is in discussions with Seaspan Corp. (SSW) on an order, it said by e-mail yesterday without elaboration. Hong Kong-based lessor Seaspan said in a filing earlier this month that it had signed a letter of intent for a “significant number” of 10,000-box ships with a Chinese yard it didn’t name.
Japan’s Economy Shrinks More Than Forecast (Source: Bloomberg)
Japan’s economy shrank more than estimated in the first quarter after the March 11 earthquake and tsunami disrupted production and prompted consumers to cut back spending, sending the nation to its third recession in a decade.
Japanese Stocks Rise as U.S. Fed Signals Continued Low Rates; Inpex Climbs (Source: Bloomberg)
Japan’s Nikkei 225 (NKY) Stock Average rose for a third day after the Federal Reserve signaled U.S. interest rates will remain low and commodities advanced, boosting confidence in the global economic recovery. Fanuc Corp. (6954), Japan’s biggest maker of industrial robots that gets 75 percent of its sales abroad, climbed 1.2 percent. Inpex Corp. (1605), Japan’s largest energy exploration company, increased 2 percent. Tokyo Tatemono Co., a property developer, jumped 5.2 percent after JPMorgan Chase & Co. raised its rating on the company.
Greek Restructuring Rejected by ECB Officials in Clash With EU Politicians (Source: Bloomberg)
European Central Bank officials ruled out a Greek debt restructuring, clashing with political leaders over a solution to the sovereign financial crisis. “A Greek debt restructuring is not the appropriate way forward -- it would create a catastrophe” because it would damage the banking system, ECB Executive Board member Juergen Stark said today in Lagonissi, Greece. Fellow board member Lorenzo Bini Smaghi said in Milan that “a solution for reducing debt but not paying for it will not work.”
U.K. Consumer Confidence Falls as Economic Concerns Damp Spending Plans (Source: Bloomberg)
U.K. consumer confidence fell in April as Britons grew more pessimistic about the outlook for the economy and spending, Nationwide Building Society said. An index of sentiment slipped to 43 from a revised 45 in March, when it rebounded from a record low, the customer-owned lender said in an e-mailed report today. A gauge of whether now is a good time to make major purchases dropped 5 points to 62.
Unemployment Claims Rise Most Since January 2010 as Recovery Stays Fragile (Source: Bloomberg)
U.K. unemployment claims rose in April at the fastest pace since January 2010, underlining the fragility of the recovery as government spending cuts and accelerating inflation sap consumer confidence. Jobless benefit claims increased by 12,400 from March to 1.47 million, the Office for National Statistics said today in London. The median forecast of 24 economists in a Bloomberg News Survey was for no change. Unemployment measured by International Labour Organization methods fell 36,000 to 2.46 million people in the quarter through March.
Goldman Lowers Dollar Forecasts Versus Euro on Weak U.S. Growth Prospects (Source: Bloomberg)
Goldman Sachs Group Inc. lowered its forecasts for the U.S. dollar, citing poor growth prospects for the world’s largest economy. The greenback will fall to $1.45 per euro over three months from an earlier projection for it to trade at $1.40, the bank said. It will decline to $1.50 in six months and $1.55 in 12 months, analysts led by London-based Thomas Stolper wrote in an e-mailed note dated yesterday. The dollar will trade at 82 yen in three months and 86 over a year compared with an earlier prediction for it to buy 84 and 90 yen respectively, they wrote.
Dollar drop? You ain't seen nothin' yet if yuan jumps
NEW YORK, May 17 (Reuters) - Americans worried about a weaker dollar may want to get used to it. Whatever Treasury Secretary Timothy Geithner may say about a strong dollar being in U.S. interests, the likelihood is that the currency will fall sharply in the next few years. And you don't have to go much further than the pressure Washington is putting on China to revalue the yuan to explain why.
If the yuan appreciates between an annual 5-7 percent against the dollar over the next five years, as some analysts and traders expect, then the dollar is likely to slide anywhere between 20 to 30 percent on trade weighted and other indexes based on baskets of currencies.
FOREX-Euro clings to gains, USD risks FOMC selling
LONDON, May 18 (Reuters) - The euro struggled to hold gains against the dollar on Wednesday after early demand ran into technical resistance but the single currency may catch fresh bids if Federal Reserve meeting minutes suggest U.S. interest rates will stay low.
The euro traded at $1.4245, little changed on the day. Traders said early sovereign demand took the single currency to a session high of $1.4287, but additional gains were blocked by its 55-day moving average around $1.4290.
Stock, euro price falls prompt investors to buy
LONDON, May 18 (Reuters) - World stocks climbed off four-week lows and the euro recovered some ground against the dollar as investors sought bargains in recently hard-hit markets.
The hunt for cheaper assets, however, was tempered by disappointing U.S. economic data and continuing concerns about the euro zone's struggle to control debt in its peripheral economies, particularly Greece.
20110519 1017 Global Commodities Related News.
Corn (Source: CME)
US corn futures finish sharply higher on concerns that wet weather which is delaying planting will reduce output. Linn Group predicts plantings will fall short of the USDA's March estimate by 3% due to persistent rains keeping farmers out of their fields. Some farmers will shift corn acres to other crops or cash in on crop insurance because they were unable to plant in a timely manner. "Most states have final planting deadlines fast approaching," says John Roach, president of Roach Ag Marketing. CBOT July corn climbs 29 1/2c to $7.49 3/4 a bushel after hitting the 30c limit earlier in the session.
Wheat (Source: CME)
US wheat futures finish up sharply as harsh weather reduces output forecasts. Strategie Grains ditches expectations of a rise in French wheat production, saying drought has cut the country's crop to less than 35M tons from 35.6M in 2010. "We're getting confirmation in Europe now that the small crop is getting smaller," says Mike Zuzolo, president of Global Commodity Analytics & Consulting. Rains slow US spring wheat planting, boosting MGE prices. CBOT July wheat rises 53c to $8.17/bushel, KCBT July gains 43 1/2c to $9.38 and MGE July soars the 60c daily limit to $9.96 1/4.
Investors less upbeat on stocks, commodities - BofA poll
LONDON, May 17 (Reuters) - Investors turned less upbeat on stocks in May as uncertainty grew over global growth, while they also became less positive about commodities after a sharp selloff, a closely watched survey showed on Tuesday.
The monthly global fund managers' survey from Bank of America-Merrill Lynch showed a net 41 percent of respondents were overweight equities in May, down from 50 percent last month.
Commodities in long-term growth trend-Investec
LONDON, May 18 (Reuters) - Commodities are in a long-term trend of solid demand growth, and a recent sell-off in natural resources markets is likely to prove a technical downswing, Investec fund manager George Cheveley said.
"I believe in the long-term story," said Cheveley, who co-manages Investec's 326.5 million pound ($531 million) Enhanced Natural Resources Fund, a broad commodities resource equity fund.
Commodities Gain Most in a Week as Drought, Low Stockpiles May Curb Supply (Source: Bloomberg)
Commodities gained the most in a week as drought in Europe and the U.S., lower energy stockpiles and crop delays in Brazil revived speculation that supplies of food and raw materials will tighten. The Standard & Poor’s GSCI Index of 24 raw materials gained 2.7 percent to settle at 691.04 at 3:47 p.m. in New York, the biggest advance since May 9. Wheat led the rally, jumping 6.9 percent, while sugar surged 4.2 percent, crude oil climbed 3.3 percent and copper rose 3 percent.
Argentina To Host G20 Commodities Conference (Source: CME)
Argentina will host a meeting of agriculture ministers from the Group of 20 nations this week to discuss commodity prices. Delegates are expected to address concerns about high food prices and the volatility of global commodity prices. Representatives from the World Bank and International Monetary Fund, among other international organizations, have been invited to attend the conference. The run-up in prices of grains and other food staples earlier this year prompted the World Bank to warn in February that tens of millions of people had been pushed into poverty across the globe. Brazil and Argentina--two of the world's largest commodity producers and G-20 members--have opposed international efforts to regulate the trading and prices of commodities. France has been especially keen to push for greater regulation of commodities markets and prices. Argentina on the other hand has argued that the high prices for agriculture commodities are the result of sustained demand from China and India.
Last month, Argentina's Economy Minister Amado Boudou said the solution to high prices is to lift farm output. However, Argentine officials have shown some willingness to discuss greater regulation and transparency of derivatives markets. Argentina leads the world in soymeal and soyoil exports and is the third-largest soybean exporter. Argentina is also the world's No. 2 corn exporter. Taxes on grain exports are an important source of revenue for the government and underpinned the country's $12.06 billion trade surplus last year.
US corn rallies to 2-wk top as weather threatens crop
SINGAPORE, May 18 (Reuters) - Chicago corn rose to its highest in nearly two weeks, while wheat hit a one-week top as adverse crop weather in the United States and Europe continued to threaten output.
"There are certainly a lot of concerns around the European weather as minimal rains are expected in the next two weeks," said Adam Davis, a senior commodity analyst at Merricks Capital in a Melbourne.
Argentine wheat area seen up 25 pct -gov't
BUENOS AIRES, May 17 (Reuters) - Argentine farmers are expected to plant 25 percent more wheat in the 2011/12 season, a senior Agriculture Ministry official said on Tuesday as early sowing gets under way.
Growers in the South American country, one of the world's leading wheat exporters and a key supplier to neighboring Brazil, produced a healthy 14.7 million tonnes of the grain in the last harvest thanks to favorable weather.
Western U.S. Corn Belt sees freeze 2 straight days
CHICAGO, May 17 (Reuters) - The U.S. western Corn Belt saw frost for the second straight day as morning lows dipped to freezing, raising concerns about the condition of newly emerged corn plants, a forecaster said on Tuesday.
"There was a lot of scattered frost across the western Corn Belt," said Mike Palmerino, forecaster with Telvent DTN. "Most vulnerable to damage is Iowa and Nebraska where more corn is emerged."
EU wheat suffers drought, some rain for Germany
HAMBURG, May 17 (Reuters) - A drought in much of west Europe now looks certain to cut wheat harvest yields this summer but rain this week gave last-minute relief to German crops, analysts and traders said on Tuesday.
Parts of central Europe had less than 40 percent of their long-term average rainfall from February to April, said the Global Precipitation Climatology Centre.
Spanish rain adequate in run-up to grain harvest
MADRID, May 17 (Reuters) - Spanish rainfall was below average last week, according to the latest official data on Tuesday, but farmers say it has been enough to allow the winter wheat and barley harvest to develop.
Total water stocks declined by 0.2 percent since last week, but at 82.4 percent of capacity were still comfortably above a 10-year average of 68 percent.
Zambia's 2010/2011 maize ouput seen over 3 mln T
LUSAKA, May 17 (Reuters) - Zambia's maize production in the 2010/2011 season will rise to over 3 million tonnes from the 2.8 million produced last year, a crop forecast showed on Tuesday.
The forecast of another bumper harvest is a good sign for Zambia's economy, which is heavily dependent on mining and agriculture, and comes at a time when food inflation and security are major concerns on the world's poorest continent.
Drought damage to French wheat irreversible-expert
PARIS, May 17 (Reuters) - A drought in France has become so severe that there can be no recovery from crop losses, and this year's wheat output is likely to fall by far more than 5 percent in the European Union's largest grain producer, an expert said.
"Taking into account the weather, there is no possibility anymore to catch up on yields at a national scale after the long hydric stress of the past weeks," said Jean-Charles Deswartes, an engineer at France's grains technical institute Arvalis.
Corn plantings seen 60 pct done, soybeans 20 pct
KANSAS CITY, Mo., May 16 (Reuters) - U.S. farmers made good progress on closely watched corn plantings over the last week, but more rain in the forecast and a rapidly closing window for optimal seeding kept some industry players on edge.
The pace of both corn and soybean planting remains well behind schedule but picked up dramatically over the last week as farmers raced to take advantage of a break from incessantly wet spring weather, analysts surveyed by Reuters said on Monday morning.
Keeping Russia's Grain Ban This Year "Unjustified" - USDA Attache (Source: CME)
Keeping Russia's grain ban in place is unnecessary as the country is expected to post a 6 to 7 million metric ton surplus in the 2011-12 season, the U.S. Department of Agriculture's Moscow attache said. The attache said in a report that political considerations, including the lobbying of powerful livestock producers, means the Kremlin may keep the embargo in order to cap domestic grain prices. "From an economist's point of view the continuation of the grain ban is unjustified," said the report. "Unfortunately, Russian grain policy does not always follow the logic of economics." Russia's government imposed a ban on grain exports last year after the worst drought to hit the country in more than a century slashed the country's harvest by a third to around 63 million tons. But now the prospects of a larger crop in 2011-12 and plummeting internal prices have buoyed hopes that the Black Sea producer will reenter the markets again this year.
The USDA gave an optimistic estimate last week that Russia will export 10 million tons during the season. Russian officials are due to meet at the end of this month to debate whether to keep or lift the ban. The issue has become particularly pressing as sustained dryness in Europe and the U.S. is already damaging crop development and some forecasters fear supplies may not be enough to replenish low exporter stocks. Producer agencies are also urging the Kremlin to release supplies as up to 8 million tons of grain is estimated to be sitting in elevators in the south, taking up valuable storage space for the coming harvest. "If the ban remains in place some grain may rot in the fields as silos are already near capacity," said the report.
EU Wheat At 3-Month High On Worst Drought For Decades (Source: CME)
European wheat futures jumped to three-month highs as the worst drought for decades dimmed hopes for a rebound in output in the world's largest grain-producing region next season. Europe is in the grip of a drought which forecasters warn could have devastating effects on yields. Conditions are worsening daily in France, Germany, the U.K. and Poland--which account for around 65% of the 27-nation bloc's wheat crop--and more heat and dryness are expected in May. Influential analyst Strategie Grains ditched earlier expectations of a rise in French wheat production this year, saying the drought has cut the production potential of Western Europe's largest producer to less than 35 million tons, compared with 35.6 million tons in 2010. France has imposed limits on water restrictions in 28 out of 96 of its administrative regions because of the lack of rainfall, while the U.K. farm ministry is preparing contingency plans should conditions worsen.
"We are now in a state of crisis," French Ecology Minister Nathalie Kosciusko-Morizet said this week. Meanwhile, French risk manager Agritel gave an even more pessimistic estimate, forecasting that France's 2011-12 wheat crop will fall by 11.5% compared with 31.7 million tons in the 2010-11 season due to damage caused by the months-long drought in the country. In its first estimate for the 2011-2012 harvest, the risk manager said France's average wheat crop yield could fall by 13% to 6.31 tons a hectare, cancelling out a 2% rise in acreage to just over 5 million hectares. "This drop in expected yields is the direct consequence of a lack of rain during the past three months," Agritel said. In Germany, farming body Deutsche Raiffeisenberband said it expects the No. 2 European producer's grain harvest to fall to 40.7 million tons, down 8% from 2010 as "the drought of the past weeks has hit crops, particularly in the northeastern regions, and will cause considerable loss."
Across the Atlantic in the U.S., the world's largest exporter, weather is causing more problems. States in the northern Plains, such as North Dakota and Minnesota, have been too wet to sow spring wheat, while weather issues have caused a slump in quality expectations for the harvest. "Combine French drought with U.S. planting issues and you have higher wheat markets," said Kayla Hoffman, a grain merchandiser in North Dakota, the top U.S. producer of spring wheat. Wheat markets are particularly jittery after a poor world harvest last year cut global supplies. Although all major forecasting agencies are predicting an expansion in plantings in 2011-12, doubts remain about whether that will be enough to replenish poor stock levels with the estimated decline in yields. The U.S. Department of Agriculture's Brussels attache forecasts that European Union wheat stocks will fall to a record low of 10.7 million tons this season due to the rapid pace of exports from the bloc this season.
Wheat Threatened Across Europe as Driest Weather in Decades Withers Crops (Source: Bloomberg)
Europe’s wheat crop, making up a fifth of global output, is under threat in the U.K., France and Germany from the driest growing conditions in at least 36 years. France’s soft-wheat crop, the European Union’s largest, will drop 12 percent, and German output will slide 7.2 percent, local forecasters said today. Wheat jumped 4.5 percent to the highest level since Feb. 14.
ICE sugar, coffee rise, buoyed by soft dollar
LONDON, May 18 (Reuters) - ICE sugar bounced higher in early trade, buoyed by a weaker dollar, and were above an 8-month low, while arabicas firmed in sight of a 34-year peak, as softs consolidated after a recent slide in commodity markets. ICE raw sugar futures bounced higher, above the 8-month trough of 20.40 cents a lb touched on May 6, supported by a slow start to the new centre-south Brazilian harvest. Brazilian mills have focused on ethanol production early in the harvest period.
Brazil sugar shipments slow but improving
SAO PAULO, May 17 (Reuters) - The number of ships loading, waiting or arriving to export sugar from Brazil's two main ports is growing and should let up in the coming days, shipping agencies said.
The lineup of vessels reached 58 on Tuesday, slightly up from 55 a week ago. Although backlogs to haul sugar from the world's largest producer of the sweetener are not uncommon, these numbers are not normal for this early in the season.
Farmers threaten to boycott Morocco sugar refiner
RABAT, May 17 (Reuters) - Thousands of Moroccan sugar beet farmers are threatening to boycott the delivery of next year's crop to Cosumar to press the country's sole sugar refiner for better terms, farmers said.
If the farmers carry through with their threat, Cosumar -- which has an annual refined sugar output of 1.2 million tonnes -- could be forced to increase the amount of raw sugar it imports, with Brazil its main supplier.
ICO sees 2012/13 coffee output up
LONDON, May 17 (Reuters) - World 2012/13 coffee output is expected to rise almost 8 percent to around 140 million 60-kg bags due to an on-year in top producer Brazil's biennial production cycle, the International Coffee Organization said on Tuesday.
The ICO expects world 2011/12 coffee output at around 130 million bags.
Copper Trades at $9,060, May Decline After Gaining the Most in Two Months (Source: Bloomberg)
Copper in London may decline as some investors sell the metal to lock in gains after it rallied the most in two months. Three-month delivery copper on the London Metal Exchange fell fell as much as 0.2 percent to $9,046 a metric ton, and traded at $9,060 by 8:04 a.m. Singapore time. It climbed 3 percent yesterday, the most since March 17.
Copper surplus to pressure prices in 2013 - CRU
AMSTERDAM, May 17 (Reuters) - Global copper production is set to rise in the next two years, leading to a surplus which will put pressure on prices in 2013, said an analyst with industry consultants CRU Group on Tuesday.
Christine Meilton, chief consultant at CRU, said new copper production capacity would come onstream in North America and Australia in 2012 and 2013.
Zambia copper growth likely to ride out power costs
LUSAKA/LONDON, May 17 (Reuters) - A recent sharp increase in power costs for Zambian miners will dent their profitability, but not stop them developing the projects needed to feed the world's voracious appetite for copper.
Zambia, Africa's top copper producer, has huge potential with its vast high-grade reserves of the metal used in power and construction. Its output is already expected to more than double to around 2.0 million tonnes by 2015.
LME aluminium stocks hit record above 4.71 mln T
LONDON, May 18 (Reuters) - Stocks of aluminium in London Metal Exchange warehouses rose by 1,325 tonnes to hit a record high of 4,711,875 million tonnes, data showed on Wednesday.
A backwardation, or premium for the cash contract against the three-month contract, earlier this week has attracted metal to LME warehouses.
Zinc market has 111,000 T surplus in Q1'11-ILZSG
LONDON, May 18 (Reuters) - The global zinc market was in surplus by 111,000 tonnes in the first quarter of 2011, the latest monthly bulletin from Lisbon-based International Lead and Zinc Study Group (ILZSG) showed on Wednesday.
Global refined zinc use was 3.083 million tonnes, compared with 2.909 million in January-March 2011.
Lead market has 24,000 T surplus Jan-March-ILZSG
LONDON, May 18 (Reuters) - The global lead market was in surplus by 24,000 tonnes in the first quarter of the year, the latest monthly bulletin from the Lisbon-based International Lead and Zinc Study Group (ILZSG) showed on Wednesday.
Global refined lead use was 2.435 million tonnes, up from 2.156 million in January to March 2011.
World refined lead output was 2.459 million tonnes, up from 2.166 million tonnes a year earlier.
Gold Futures Jump Most This Month on Inflation Concerns; Silver Rebounds (Source: Bloomberg)
Gold futures rose the most this month as grain and energy prices surged, boosting the appeal of the precious metal as a hedge against inflation. Silver jumped almost 4 percent. The Thomson Reuters/Jefferies CRB Index of 19 raw materials gained as much as 2.6 percent. Global food costs are close to the highest ever, according to the United Nations, and crude oil topped $100 a barrel today. Analysts surveyed by Germany’s Ifo research institute raised their 2010 global inflation forecast to 3.8 percent from 3.4 percent.
METALS-Soft dollar fuels copper's rally to 1-week high
LONDON, May 18 (Reuters) - Copper rallied to a one-week high on Wednesday as the dollar slipped and investors returned to commodity markets, but doubts about short-term fundamentals are expected to cap prices.
Benchmark copper on the London Metal Exchange was trading at $8,926 a tonne at 0944 GMT from $8,799 at the close on Tuesday. The metal used in power and construction earlier touched $8,955 a tonne, its highest since May 11.
PRECIOUS-Gold breaks 3-day losing streak as dollar retreats
LONDON, May 18 (Reuters) - Gold prices rose back above $1,490 an ounce in Europe on Wednesday as a retreat in the dollar encouraged buyers to hunt bargains after the metal's three-day decline, and as oil prices rebounded.
Prices are down nearly 5 percent so far this week, with investor sentiment towards the precious metal turning more cautious as gold holders worried it may struggle to rise significantly after hitting record highs this month.
US corn futures finish sharply higher on concerns that wet weather which is delaying planting will reduce output. Linn Group predicts plantings will fall short of the USDA's March estimate by 3% due to persistent rains keeping farmers out of their fields. Some farmers will shift corn acres to other crops or cash in on crop insurance because they were unable to plant in a timely manner. "Most states have final planting deadlines fast approaching," says John Roach, president of Roach Ag Marketing. CBOT July corn climbs 29 1/2c to $7.49 3/4 a bushel after hitting the 30c limit earlier in the session.
Wheat (Source: CME)
US wheat futures finish up sharply as harsh weather reduces output forecasts. Strategie Grains ditches expectations of a rise in French wheat production, saying drought has cut the country's crop to less than 35M tons from 35.6M in 2010. "We're getting confirmation in Europe now that the small crop is getting smaller," says Mike Zuzolo, president of Global Commodity Analytics & Consulting. Rains slow US spring wheat planting, boosting MGE prices. CBOT July wheat rises 53c to $8.17/bushel, KCBT July gains 43 1/2c to $9.38 and MGE July soars the 60c daily limit to $9.96 1/4.
Investors less upbeat on stocks, commodities - BofA poll
LONDON, May 17 (Reuters) - Investors turned less upbeat on stocks in May as uncertainty grew over global growth, while they also became less positive about commodities after a sharp selloff, a closely watched survey showed on Tuesday.
The monthly global fund managers' survey from Bank of America-Merrill Lynch showed a net 41 percent of respondents were overweight equities in May, down from 50 percent last month.
Commodities in long-term growth trend-Investec
LONDON, May 18 (Reuters) - Commodities are in a long-term trend of solid demand growth, and a recent sell-off in natural resources markets is likely to prove a technical downswing, Investec fund manager George Cheveley said.
"I believe in the long-term story," said Cheveley, who co-manages Investec's 326.5 million pound ($531 million) Enhanced Natural Resources Fund, a broad commodities resource equity fund.
Commodities Gain Most in a Week as Drought, Low Stockpiles May Curb Supply (Source: Bloomberg)
Commodities gained the most in a week as drought in Europe and the U.S., lower energy stockpiles and crop delays in Brazil revived speculation that supplies of food and raw materials will tighten. The Standard & Poor’s GSCI Index of 24 raw materials gained 2.7 percent to settle at 691.04 at 3:47 p.m. in New York, the biggest advance since May 9. Wheat led the rally, jumping 6.9 percent, while sugar surged 4.2 percent, crude oil climbed 3.3 percent and copper rose 3 percent.
Argentina To Host G20 Commodities Conference (Source: CME)
Argentina will host a meeting of agriculture ministers from the Group of 20 nations this week to discuss commodity prices. Delegates are expected to address concerns about high food prices and the volatility of global commodity prices. Representatives from the World Bank and International Monetary Fund, among other international organizations, have been invited to attend the conference. The run-up in prices of grains and other food staples earlier this year prompted the World Bank to warn in February that tens of millions of people had been pushed into poverty across the globe. Brazil and Argentina--two of the world's largest commodity producers and G-20 members--have opposed international efforts to regulate the trading and prices of commodities. France has been especially keen to push for greater regulation of commodities markets and prices. Argentina on the other hand has argued that the high prices for agriculture commodities are the result of sustained demand from China and India.
Last month, Argentina's Economy Minister Amado Boudou said the solution to high prices is to lift farm output. However, Argentine officials have shown some willingness to discuss greater regulation and transparency of derivatives markets. Argentina leads the world in soymeal and soyoil exports and is the third-largest soybean exporter. Argentina is also the world's No. 2 corn exporter. Taxes on grain exports are an important source of revenue for the government and underpinned the country's $12.06 billion trade surplus last year.
US corn rallies to 2-wk top as weather threatens crop
SINGAPORE, May 18 (Reuters) - Chicago corn rose to its highest in nearly two weeks, while wheat hit a one-week top as adverse crop weather in the United States and Europe continued to threaten output.
"There are certainly a lot of concerns around the European weather as minimal rains are expected in the next two weeks," said Adam Davis, a senior commodity analyst at Merricks Capital in a Melbourne.
Argentine wheat area seen up 25 pct -gov't
BUENOS AIRES, May 17 (Reuters) - Argentine farmers are expected to plant 25 percent more wheat in the 2011/12 season, a senior Agriculture Ministry official said on Tuesday as early sowing gets under way.
Growers in the South American country, one of the world's leading wheat exporters and a key supplier to neighboring Brazil, produced a healthy 14.7 million tonnes of the grain in the last harvest thanks to favorable weather.
Western U.S. Corn Belt sees freeze 2 straight days
CHICAGO, May 17 (Reuters) - The U.S. western Corn Belt saw frost for the second straight day as morning lows dipped to freezing, raising concerns about the condition of newly emerged corn plants, a forecaster said on Tuesday.
"There was a lot of scattered frost across the western Corn Belt," said Mike Palmerino, forecaster with Telvent DTN. "Most vulnerable to damage is Iowa and Nebraska where more corn is emerged."
EU wheat suffers drought, some rain for Germany
HAMBURG, May 17 (Reuters) - A drought in much of west Europe now looks certain to cut wheat harvest yields this summer but rain this week gave last-minute relief to German crops, analysts and traders said on Tuesday.
Parts of central Europe had less than 40 percent of their long-term average rainfall from February to April, said the Global Precipitation Climatology Centre.
Spanish rain adequate in run-up to grain harvest
MADRID, May 17 (Reuters) - Spanish rainfall was below average last week, according to the latest official data on Tuesday, but farmers say it has been enough to allow the winter wheat and barley harvest to develop.
Total water stocks declined by 0.2 percent since last week, but at 82.4 percent of capacity were still comfortably above a 10-year average of 68 percent.
Zambia's 2010/2011 maize ouput seen over 3 mln T
LUSAKA, May 17 (Reuters) - Zambia's maize production in the 2010/2011 season will rise to over 3 million tonnes from the 2.8 million produced last year, a crop forecast showed on Tuesday.
The forecast of another bumper harvest is a good sign for Zambia's economy, which is heavily dependent on mining and agriculture, and comes at a time when food inflation and security are major concerns on the world's poorest continent.
Drought damage to French wheat irreversible-expert
PARIS, May 17 (Reuters) - A drought in France has become so severe that there can be no recovery from crop losses, and this year's wheat output is likely to fall by far more than 5 percent in the European Union's largest grain producer, an expert said.
"Taking into account the weather, there is no possibility anymore to catch up on yields at a national scale after the long hydric stress of the past weeks," said Jean-Charles Deswartes, an engineer at France's grains technical institute Arvalis.
Corn plantings seen 60 pct done, soybeans 20 pct
KANSAS CITY, Mo., May 16 (Reuters) - U.S. farmers made good progress on closely watched corn plantings over the last week, but more rain in the forecast and a rapidly closing window for optimal seeding kept some industry players on edge.
The pace of both corn and soybean planting remains well behind schedule but picked up dramatically over the last week as farmers raced to take advantage of a break from incessantly wet spring weather, analysts surveyed by Reuters said on Monday morning.
Keeping Russia's Grain Ban This Year "Unjustified" - USDA Attache (Source: CME)
Keeping Russia's grain ban in place is unnecessary as the country is expected to post a 6 to 7 million metric ton surplus in the 2011-12 season, the U.S. Department of Agriculture's Moscow attache said. The attache said in a report that political considerations, including the lobbying of powerful livestock producers, means the Kremlin may keep the embargo in order to cap domestic grain prices. "From an economist's point of view the continuation of the grain ban is unjustified," said the report. "Unfortunately, Russian grain policy does not always follow the logic of economics." Russia's government imposed a ban on grain exports last year after the worst drought to hit the country in more than a century slashed the country's harvest by a third to around 63 million tons. But now the prospects of a larger crop in 2011-12 and plummeting internal prices have buoyed hopes that the Black Sea producer will reenter the markets again this year.
The USDA gave an optimistic estimate last week that Russia will export 10 million tons during the season. Russian officials are due to meet at the end of this month to debate whether to keep or lift the ban. The issue has become particularly pressing as sustained dryness in Europe and the U.S. is already damaging crop development and some forecasters fear supplies may not be enough to replenish low exporter stocks. Producer agencies are also urging the Kremlin to release supplies as up to 8 million tons of grain is estimated to be sitting in elevators in the south, taking up valuable storage space for the coming harvest. "If the ban remains in place some grain may rot in the fields as silos are already near capacity," said the report.
EU Wheat At 3-Month High On Worst Drought For Decades (Source: CME)
European wheat futures jumped to three-month highs as the worst drought for decades dimmed hopes for a rebound in output in the world's largest grain-producing region next season. Europe is in the grip of a drought which forecasters warn could have devastating effects on yields. Conditions are worsening daily in France, Germany, the U.K. and Poland--which account for around 65% of the 27-nation bloc's wheat crop--and more heat and dryness are expected in May. Influential analyst Strategie Grains ditched earlier expectations of a rise in French wheat production this year, saying the drought has cut the production potential of Western Europe's largest producer to less than 35 million tons, compared with 35.6 million tons in 2010. France has imposed limits on water restrictions in 28 out of 96 of its administrative regions because of the lack of rainfall, while the U.K. farm ministry is preparing contingency plans should conditions worsen.
"We are now in a state of crisis," French Ecology Minister Nathalie Kosciusko-Morizet said this week. Meanwhile, French risk manager Agritel gave an even more pessimistic estimate, forecasting that France's 2011-12 wheat crop will fall by 11.5% compared with 31.7 million tons in the 2010-11 season due to damage caused by the months-long drought in the country. In its first estimate for the 2011-2012 harvest, the risk manager said France's average wheat crop yield could fall by 13% to 6.31 tons a hectare, cancelling out a 2% rise in acreage to just over 5 million hectares. "This drop in expected yields is the direct consequence of a lack of rain during the past three months," Agritel said. In Germany, farming body Deutsche Raiffeisenberband said it expects the No. 2 European producer's grain harvest to fall to 40.7 million tons, down 8% from 2010 as "the drought of the past weeks has hit crops, particularly in the northeastern regions, and will cause considerable loss."
Across the Atlantic in the U.S., the world's largest exporter, weather is causing more problems. States in the northern Plains, such as North Dakota and Minnesota, have been too wet to sow spring wheat, while weather issues have caused a slump in quality expectations for the harvest. "Combine French drought with U.S. planting issues and you have higher wheat markets," said Kayla Hoffman, a grain merchandiser in North Dakota, the top U.S. producer of spring wheat. Wheat markets are particularly jittery after a poor world harvest last year cut global supplies. Although all major forecasting agencies are predicting an expansion in plantings in 2011-12, doubts remain about whether that will be enough to replenish poor stock levels with the estimated decline in yields. The U.S. Department of Agriculture's Brussels attache forecasts that European Union wheat stocks will fall to a record low of 10.7 million tons this season due to the rapid pace of exports from the bloc this season.
Wheat Threatened Across Europe as Driest Weather in Decades Withers Crops (Source: Bloomberg)
Europe’s wheat crop, making up a fifth of global output, is under threat in the U.K., France and Germany from the driest growing conditions in at least 36 years. France’s soft-wheat crop, the European Union’s largest, will drop 12 percent, and German output will slide 7.2 percent, local forecasters said today. Wheat jumped 4.5 percent to the highest level since Feb. 14.
ICE sugar, coffee rise, buoyed by soft dollar
LONDON, May 18 (Reuters) - ICE sugar bounced higher in early trade, buoyed by a weaker dollar, and were above an 8-month low, while arabicas firmed in sight of a 34-year peak, as softs consolidated after a recent slide in commodity markets. ICE raw sugar futures bounced higher, above the 8-month trough of 20.40 cents a lb touched on May 6, supported by a slow start to the new centre-south Brazilian harvest. Brazilian mills have focused on ethanol production early in the harvest period.
Brazil sugar shipments slow but improving
SAO PAULO, May 17 (Reuters) - The number of ships loading, waiting or arriving to export sugar from Brazil's two main ports is growing and should let up in the coming days, shipping agencies said.
The lineup of vessels reached 58 on Tuesday, slightly up from 55 a week ago. Although backlogs to haul sugar from the world's largest producer of the sweetener are not uncommon, these numbers are not normal for this early in the season.
Farmers threaten to boycott Morocco sugar refiner
RABAT, May 17 (Reuters) - Thousands of Moroccan sugar beet farmers are threatening to boycott the delivery of next year's crop to Cosumar to press the country's sole sugar refiner for better terms, farmers said.
If the farmers carry through with their threat, Cosumar -- which has an annual refined sugar output of 1.2 million tonnes -- could be forced to increase the amount of raw sugar it imports, with Brazil its main supplier.
ICO sees 2012/13 coffee output up
LONDON, May 17 (Reuters) - World 2012/13 coffee output is expected to rise almost 8 percent to around 140 million 60-kg bags due to an on-year in top producer Brazil's biennial production cycle, the International Coffee Organization said on Tuesday.
The ICO expects world 2011/12 coffee output at around 130 million bags.
Copper Trades at $9,060, May Decline After Gaining the Most in Two Months (Source: Bloomberg)
Copper in London may decline as some investors sell the metal to lock in gains after it rallied the most in two months. Three-month delivery copper on the London Metal Exchange fell fell as much as 0.2 percent to $9,046 a metric ton, and traded at $9,060 by 8:04 a.m. Singapore time. It climbed 3 percent yesterday, the most since March 17.
Copper surplus to pressure prices in 2013 - CRU
AMSTERDAM, May 17 (Reuters) - Global copper production is set to rise in the next two years, leading to a surplus which will put pressure on prices in 2013, said an analyst with industry consultants CRU Group on Tuesday.
Christine Meilton, chief consultant at CRU, said new copper production capacity would come onstream in North America and Australia in 2012 and 2013.
Zambia copper growth likely to ride out power costs
LUSAKA/LONDON, May 17 (Reuters) - A recent sharp increase in power costs for Zambian miners will dent their profitability, but not stop them developing the projects needed to feed the world's voracious appetite for copper.
Zambia, Africa's top copper producer, has huge potential with its vast high-grade reserves of the metal used in power and construction. Its output is already expected to more than double to around 2.0 million tonnes by 2015.
LME aluminium stocks hit record above 4.71 mln T
LONDON, May 18 (Reuters) - Stocks of aluminium in London Metal Exchange warehouses rose by 1,325 tonnes to hit a record high of 4,711,875 million tonnes, data showed on Wednesday.
A backwardation, or premium for the cash contract against the three-month contract, earlier this week has attracted metal to LME warehouses.
Zinc market has 111,000 T surplus in Q1'11-ILZSG
LONDON, May 18 (Reuters) - The global zinc market was in surplus by 111,000 tonnes in the first quarter of 2011, the latest monthly bulletin from Lisbon-based International Lead and Zinc Study Group (ILZSG) showed on Wednesday.
Global refined zinc use was 3.083 million tonnes, compared with 2.909 million in January-March 2011.
Lead market has 24,000 T surplus Jan-March-ILZSG
LONDON, May 18 (Reuters) - The global lead market was in surplus by 24,000 tonnes in the first quarter of the year, the latest monthly bulletin from the Lisbon-based International Lead and Zinc Study Group (ILZSG) showed on Wednesday.
Global refined lead use was 2.435 million tonnes, up from 2.156 million in January to March 2011.
World refined lead output was 2.459 million tonnes, up from 2.166 million tonnes a year earlier.
Gold Futures Jump Most This Month on Inflation Concerns; Silver Rebounds (Source: Bloomberg)
Gold futures rose the most this month as grain and energy prices surged, boosting the appeal of the precious metal as a hedge against inflation. Silver jumped almost 4 percent. The Thomson Reuters/Jefferies CRB Index of 19 raw materials gained as much as 2.6 percent. Global food costs are close to the highest ever, according to the United Nations, and crude oil topped $100 a barrel today. Analysts surveyed by Germany’s Ifo research institute raised their 2010 global inflation forecast to 3.8 percent from 3.4 percent.
METALS-Soft dollar fuels copper's rally to 1-week high
LONDON, May 18 (Reuters) - Copper rallied to a one-week high on Wednesday as the dollar slipped and investors returned to commodity markets, but doubts about short-term fundamentals are expected to cap prices.
Benchmark copper on the London Metal Exchange was trading at $8,926 a tonne at 0944 GMT from $8,799 at the close on Tuesday. The metal used in power and construction earlier touched $8,955 a tonne, its highest since May 11.
PRECIOUS-Gold breaks 3-day losing streak as dollar retreats
LONDON, May 18 (Reuters) - Gold prices rose back above $1,490 an ounce in Europe on Wednesday as a retreat in the dollar encouraged buyers to hunt bargains after the metal's three-day decline, and as oil prices rebounded.
Prices are down nearly 5 percent so far this week, with investor sentiment towards the precious metal turning more cautious as gold holders worried it may struggle to rise significantly after hitting record highs this month.
20110519 1016 Soy Oil & Palm Oil Related News.
Soy Oil chart reading : correction range bound little downside biased.
Soybeans (Source: CME)
US soybean futures climb amid widespread buying of commodities. Spillover support from surging grain and crude oil prices lifted the market, traders say. Crop concerns added support, as wet weather delaying corn planting "could also trim soybean yield potential if delays continue," according to Doane Advisory Services. Soy is planted later in the spring than corn. CBOT July soybeans rise 38 1/2c to $13.79 1/2 a bushel.
Soybean Meal/Oil (Source: CME)
US soy product futures finish with strong gains amid broad buying of commodities. Soymeal and soyoil rally with soybeans, grains, crude oil and gold. The soy complex feels additional support from early concerns rains delaying corn planting may slow soybean planting if they continue. Forecasts for persistent wetness indicate "soy planting delays will be [the] next topical concern," according to brokerage firm RJ O'Brien. CBOT July soymeal bolts $10.60 higher to $361 per short ton, while July soyoil gains 1.26c to $57.30c per pound.
China Faces Soyoil Glut As Import From Argentina Looms (Source: CME)
A quick resumption of soyoil imports from Argentina may help bring down domestic prices in China, but this may further complicate the environment for the domestic soy crushing industry which is already reeling under the pressure of government price controls, record high soybean stocks and negative crushing margins. Argentina expects to resume soyoil shipments to China "soon" as well as start exporting meat and barley, stepping up trade ties at a time when the Chinese soy industry has signaled concerns that further edible-oil shipments would weigh on domestic prices. The South American nation, the world's largest soyoil exporter, is on a quest to mend its commercial relationship with the world's largest consumer, marred by disputes over protection. Argentine soyoil exports to China had virtually stopped during most of 2010 in what was seen as Chinese retaliation for anti-dumping action against its exports of manufactured goods.
"The soyoil shipments will start pretty soon... (and) we now have the green light for meat exports to China and also for barley," Argentine Undersecretary for International Trade Ariel Schale told Dow Jones Newswires Tuesday. He said discussions were underway to expand exports of corn, apples, pears, and bovine semen and embryo to China. Last Friday, Argentina won a deal to export at least 500,000 metric tons of soyoil to China, resuming a trade interrupted by accusations of Argentina's restrictions against Chinese manufactured goods. While the development removes an irritant in bilateral trade, it could create new problems in the Chinese market, industry participants said. In the wake of the soyoil deal, a Chinese state agricultural research agency noted this week that the domestic market was still swamped with soy stocks. Prospects of further Argentine shipments took soybean and soyoil futures on the Dalian Commodity Exchange down nearly 1% Tuesday.
Chinese imports of soybeans reached record levels last year, and have continued to stay robust this year as some importers use the trade as a source of short-term financing for other projects including construction. This has kept soybean imports high despite demand being lukewarm at best. Despite stock levels at China's ports at near-record levels in excess of 6 million tons, much of the country's soy crushing capacity is idling as price caps on cooking oils have eroded margins for soy crushers. The arrival of Argentinean soyoil is likely to make this worse, Nanhua Futures analyst He Lin said. "Right now, China's soyoil consumption level isn't rosy," the state-backed China National Grains & Oils Information Center said in a note Tuesday. Schale didn't provide a more specific timeframe for Argentine soyoil shipments to begin, but said the deal was struck after three Chinese companies visited Buenos Aires along with Commerce Minister Chen Deming last week to place the orders.
Chinese demand for corn, however, is projected to be higher, with private-sector analysts indicating earlier this year that the country's corn stocks-to-use ratio, an indicator comparing grain reserves with consumption levels, had fallen to around 37%, well below an average of 93% between 1993 and 2003. But China has been keen to portray an image of having sufficient domestic corn stocks, in part due to its need to maintain price stability.
Ruchi Soya sees India's 2010/11 edible oil imports down 9 pct
NEW DELHI, May 17 (Reuters) - India's edible oil imports could drop 9 percent in the year to October due to higher domestic oilseed output, the managing director of Ruchi Soya Industries , the country's top importer of cooking oils, said on Tuesday.
India, the world's biggest edible oil importer, bought 3.5 million tonnes of edible oils in the first half of 2010/11, down from 4.1 million tonnes in the year ago period.
Palm oil hits two-week high on stronger demand to come
KUALA LUMPUR, May 18 (Reuters) - Malaysian crude palm oil futures climbed to a two-week high as traders bet on strong demand in the weeks to come as top vegetable oil buyers India and China restock.
"Palm oil is not about to go down anytime soon. Demand in Asia is picking up and the crop scares in the U.S. And Europe will support prices," said a trader with a foreign commodities broker in the Malaysian capital.
Dry weather to cut EU 2011 rapeseed crop-Oil World
HAMBURG, May 17 (Reuters) - Dry weather may cut the European Union's 2011 rapeseed crop to a three-year low of 19.5 million tonnes from 20.59 million tonnes in 2010, Hamburg-based oilseeds analysts Oil World said on Tuesday.
"The deterioration of rapeseed production prospects is about to reach alarming proportions," Oil World said.
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