U.S. Senate panel approves CFTC nominee Wetjen
WASHINGTON, Aug 2 (Reuters) - The U.S. Senate Agriculture Committee approved the nomination of a Democratic commissioner to the U.S. futures regulator on Tuesday, an appointment that if confirmed could prove pivotal in the implementation of some far-reaching Wall Street reforms.
The committee approved Mark Wetjen, 37, by a voice vote in a room near the Senate chamber amid the uproar that accompanied voting on the U.S. debt limit. Lawmakers ducked into the room to have their say, before leaving into jam-packed hallways.
Corn
US corn futures end lower in a turnaround from strong gains. Traders book profits after concerns about US crop damage drove most-active December corn to close at a contract high Tuesday. Lingering uncertainty about damage from July heat should prevent a sharp setback. "It's becoming obvious to some people that there are problems with that heat," says Mike Krueger of The Money Farm. CBOT December corn loses 2 3/4c to $7.13 a bushel.
Wheat
US wheat futures finish weaker in a setback from a seven-week high. Traders took money off the table after prices climbed more than 6% at CBOT yesterday on spillover support from surging corn prices. Traders say weakness in corn today allowed wheat to retreat. They worry about lackluster export demand for wheat due to increased competition for business from Russia. USDA will issue weekly export data tomorrow. CBOT September wheat drops 7 1/2c to $7.10 1/2 a bushel; KCBT September wheat loses 10c to $7.98; MGEX September slips 4 3/4c to $8.44 3/4.
Rice
US rice futures close lower with other grains on profit-taking. The markets came under pressure after climbing Tuesday. Global demand for rice also was called into question by a senior research analyst with Standard Chartered Bank, who said Indonesia was undergoing a shift in consumption toward noodles from rice. The trend is significant because Indonesia is typically a major importer of both wheat and rice. CBOT September rice slides 2 1/2c to $16.34 1/2 per hundredweight.
GRAINS-U.S. corn at 8-wk top on crop woes; wheat, soy dip
SINGAPORE, Aug 3 (Reuters) - Chicago corn edged higher on Wednesday, climbing to an 8-week top after rising by its daily limit in the last session as concerns over hot weather threatening to curb U.S. crop yields continued to buoy the market.
"The grain markets are feeling the pressure of that, but if we take a look at the corn market it has popped above last night's close and it reflects expectations that U.S. corn production will be revised lower by the USDA next week," said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia.
Indonesia may export 50,000 T premium rice to S.Korea-govt
JAKARTA, Aug 3 (Reuters) - Indonesia may export 50,000 tonnes of premium quality rice to South Korea, the economic minister of Southeast Asia's largest economy said on Wednesday, making it the first shipment of the grain to the North Asian country if the deal goes through.
Indonesia's agriculture ministry added that an export license had been granted to suppliers in the South Sulawesi province.
Australia wheat crop hit by cold dry weather - CBA
SYDNEY, Aug 3 (Reuters) - Australia's 2011/12 wheat crop is suffering from cold dry weather in the key eastern grain producing state of New South Wales, which may cut output, the Commonwealth Bank of Australia said in a report on Wednesday.
Offsetting the deteriorating outlook in New South Wales is an improved outlook for Western Australia, typically the biggest grain exporting state in the world's fourth-biggest wheat shipper.
German wheat harvest delayed, French pace picks up
LONDON, Aug 2 (Reuters) - Rains have slowed harvesting of wheat in Germany and raised quality concerns but in top European Union producer France the return of warm, dry weather has allowed a stalled harvest to pick up speed, crop analysts said on Tuesday.
Farmers are around halfway through the wheat harvest in Germany, the second largest EU producer, and work in some areas is now running well behind previous expectations.
French wheat harvest to escape rain damage-analysts
PARIS, Aug 2 (Reuters) - Latest harvesting of wheat in France has shown crops are in reasonable condition, analysts said, allaying fears of damage from heavy rain last month in the European Union's top producer and exporter of the grain.
The return of warm, dry weather since the end of last week has allowed a stalled harvest to pick up speed in major northern grain belts, and initial signs were that yields and quality had not suffered significantly from an unusually wet and cool July.
Ukraine grain exports fall 81 pct in July
KIEV, Aug 2 (Reuters) - Grain exports from Ukraine's ports dropped 81 percent in July versus June but the ex-Soviet republic is likely to win back market share from Russia later this year after a bumper harvest, analysts and traders said.
Analyst UkrAgroConsult said on Tuesday exports dropped to 334,000 tonnes in July, the first month of the new 2011/12 season, from 1.786 million tonnes in June, a slide analysts said reflected aggressive pricing by neighbouring Russia.
Corn Drops as U.S. Slowdown May Reduce Commodity Demand; Wheat, Soy Fall (Source: Bloomberg)
Corn fell from a seven-week high on concern that lower spending by U.S. consumers and companies will reduce grain demand. Soybeans and wheat also declined. Service industries expanded in July at the slowest pace since February 2010, the Institute for Supply Management said today. Pacific Investment Management Co. and BlackRock Inc., which oversee a combined $5 trillion, said the U.S. economy is stalling. Corn has rallied 76 percent in the past year on expectations of increased demand for ethanol and animal feed. “More economists are talking about a slowdown, and that may have a negative impact on demand,” Jim Gerlach, the president of A/C Trading Inc. in Fowler, Indiana, said in a telephone interview. “Investor worries about a return of their capital, rather than a return on their capital, is at the forefront, with ‘risk-off’ trading dominating markets.”
Southern Brazil Wheat Crop Could See Frost This Week
A cold front advancing over southern Brazil could bring freezing temperatures to grain-producing areas in coming days, but the likelihood of additional frosts this winter will be very low after that, Somar Meteorologia said. Some of the wheat sown during the past couple of months in the southernmost states of Rio Grande do Sul and Santa Catarina is at a development stage in which it's vulnerable to low temperatures, said Olivia Nunes, a meteorologist at Somar. The two states' combined are expected to produce about 2.31 million metric tons of wheat in the 2011-12 crop, up about 4% from the previous year, according to government forecasting agency Conab's latest report. Frost will be most likely on Thursday and Friday in Santa Catarina and Rio Grande do Sul, Somar said.
The cold front could also bring freezing temperatures to some parts of nearby Parana state, which saw its winter corn crop hampered by frost and untimely rains. But Nunes said that with Parana's corn ready to be harvested, the low temperatures shouldn't do additional damage. Several cold fronts have muscled their way into southern and southeastern Brazil's key agricultural regions this winter, causing isolated damage to corn and sugarcane crops and keeping coffee producers awake at night. But Brazilian farmers were spared from a particularly devastating or widespread freeze. After this week, Nunes said, the next cold front on the horizon should arrive near the end of August. By then, the mostly tropical country's brief winter will be nearing its end, and the chances of frost minimal.
Peru Agriculture Min Against Transgenic Plants -Andina
Peru's new Agriculture Minister, Miguel Caillaux, said that he is in favor of placing a moratorium on the use of transgenic plants in Peru, according to government news agency Andina. "The position of the ministry is very clear in that we are in favor of a moratorium. But it is Congress that will decide," Caillaux said. Caillaux became the minister of agriculture last week after President Ollanta Humala took office for a five year term. A committee of Peru's Congress recently approved a bill that would declare a moratorium on the use of transgenic plants in the Andean nation, but Andina said that ex-President Alan Garcia didn't sign that bill into law. Various companies that specialize in the production and sale of genetically-modified plants want to expand into Peru.
2011 German Grain Harvest Results Below Last Year's-Farmers Assoc
The 2011 German grain harvest results are likely to be significantly below last year's, the farmers association Deutscher Bauernverband, or DBV, said. The winter barley harvest is almost complete, and the results are about 20% below last year's, on around 8% smaller acreage, the DBV said. The summer barley harvest has only just begun, and early results suggest up to a 20% decline, though with higher protein content, the DBV continued. In eastern and southwest Germany, the harvest yield shrank by up to 50%. In southern and central Germany, results are about 10% to 15% below those of 2010. Extended rainy periods in recent weeks forced farmers in many parts of Germany to interrupt harvests since wet soil prevents combine harvesters from operating on the fields. In eastern and northeast Germany, the soil is still too wet for harvests, but combines began operating Tuesday in western and southern Germany.
The rapeseed harvest is between 15% and 30% below that of 2010, depending on the region. In addition, rapeseed acreage of 1.31 million hectare is almost 10% smaller than that in 2010.
About 30% Of China Seed Companies Sell Fake Seeds -Report
About 30% of seed companies in China are producing and selling counterfeit seeds, state-run China Daily said, citing industry reports. The seeds are counterfeits of higher-yield hybrids bred by global producers like Pioneer Hi-Bred International Inc. and Monsanto Co. China's seed industry consists of about 8,700 seed companies, mostly small enterprises, which the government is pushing to consolidate in the hope of improving regulation and producing one or more globally competitive leaders. Last October, the Ministry of Agriculture proposed raising the level of capital that seed-producing small- and medium-sized enterprises need to register with the ministry, which would, if effected, create "no more than 200 companies [that] meet the new requirements and stay in the market," it said, citing Xia Jingyuan, director of the ministry's National Agro-Technical Extension and Service Center.
China's cabinet has also encouraged mergers and acquisitions in the domestic seed industry to "foster companies with international competitiveness," it said.
SOFTS-Sugar, coffee nudge higher, boosted by weaker dollar
LONDON, Aug 3 (Reuters) - ICE sugar and coffee futures were firm supported by a weaker dollar, as investors remained cautious over the outlook for global economic growth.
Arabica coffee futures on ICE were little changed, underpinned by a tight physical market with Brazilian farmers delaying sales in the hope of higher prices.
Vietnam cuts 2011 coffee export forecast to 1.2 mln T
HANOI, Aug 3 (Reuters) - Vietnam, the world's top robusta producer, has cut its annual coffee export projection for calendar 2011 for a second straight month by nearly 5 percent to 1.2 million tonnes, or 20 million bags, the agriculture ministry said.
The lower forecast was based on changes in domestic supply, the ministry said in a monthly report seen on Wednesday.
Guatemala coffee exports jump in July
GUATEMALA CITY, Aug 2 (Reuters) - Coffee exports from Guatemala jumped 10.5 percent in July compared with the same month last year to reach 315,720 60-kg bags, the national coffee producers association Anacafe said on Tuesday.
Nearby Honduras and Costa Rica said on Monday that coffee exports fell last month compared with July 2010.
Brazil sugar shipments to pick up later-shipper
BRASILIA, Aug 2 (Reuters) - Brazil's sugar exports should hasten in the coming months after some importers hesitated to buy due to high prices and the shaky start to Brazil's cane harvest, shipping agent SA Commodities/Unimar said on Tuesday.
Commercial assistant Jessica Frangetto said the flow of sugar to the ports would rise further after a slow initial start to the harvest restricted the flow of the sweetener to the ports in the early stages of the harvest.
Louisiana cane crop recovers from dry spell
STOWE, Vt, Aug 2 (Reuters) - The sugar cane crop in Louisiana, the second biggest sugar cane producer in the United States, recovered from a dry spell after rains came to the region last month, an industry official said Tuesday.
Jim Simon, general manager of the American Sugar Cane League, told Reuters in an interview a dry spell hit the cane crop but that rains from July 1 "saturated" the farms.
Sucden sees Mexico 2011/12 sugar output down 5.45 pct
STOWE, Vt, Aug 2 (Reuters) - Mexico's 2011/12 sugar production is projected to fall around 5.45 percent to 5.2 million tonnes, the director of trading at Sucden Americas Corp said Tuesday.
"We could be down a little bit due to some drought," Francois David-Nehama told reporters at the annual meeting of the American Sugar Alliance.
Sugar market to stay volatile on Brazil, India prospects
STOWE, Vt, Aug 2 (Reuters) - The sugar market will remain volatile through the end of 2011 amid uncertainty how much top grower Brazil will produce and questions about India's exports, a senior official said Tuesday.
"I think we will see high volatility because of the uncertainty about the final outcome of the Brazil (cane) crop as well as the upcoming crop in India," Francois David-Nehama, the director of trading of Sucden Americas Corp, told reporters in an interview at the annual meeting here of industry group American Sugar Alliance.
India's 2011/12 rubber imports to hit record 200,000 tonnes
MUMBAI, Aug 2 (Reuters) - India, the world's second-biggest rubber consumer, is likely to import a record 200,000 tonnes of natural rubber in the year ending March 31, 2012 as tyre makers cash in on lower customs duties, the head of a trade body said on Tuesday.
"Considering the lower imports duty and price parity, I think imports of at least 200,000 tonnes would be there," George Valy, president of the Indian Rubber Dealers' Federation, told Reuters in an interview.
As Higher Prices Fuel A Rising Middle Class, Multinationals Are Finding New Markets From Indonesia To Brazil
High food and commodity prices have hobbled poor consumers and triggered riots in emerging markets this year. But in commodity-driven economies like Indonesia, the rising prices are lifting millions of farmers and miners out of poverty -- and creating opportunities for global companies. Zulfan Effendi, a 36-year-old palm-oil farmer from the western island of Sumatra, says he used to struggle to make ends meet. But in the last two years, prices have doubled for palm oil, which is used in everything from chocolate to ethanol. That has let him add rooms to his house and fill them with luxuries he once couldn't afford, like a Samsung flat-screen television set. The money he spends on groceries has tripled.
"My life is much better," he says. "I used to just have a small plantation and big debt. But now the debt is gone, and I've been able to double the size of my fields." Rubber tappers, cocoa pickers, coal miners and other rural laborers have in some cases seen their incomes more than triple in the last three years, making the workers' wealthier than some city residents and putting them on the radar of such multinational consumer-goods makers as Honda Motor Co. and Unilever. Brazil, Thailand, Malaysia and other lower- and middle-income countries also are seeing spending power rise in rural areas. Although commodity prices are off their peaks this year, they remain high and aren't expected to crash.
Of course, many of Asia's poorest people are hurt by food inflation if they aren't involved in commodities-related businesses. The Asian Development Bank projects that 64 million people in Asia could be pushed below the poverty line as food prices take a bigger bite. In Indonesia, food and fuel subsidies have helped offset some of the pain. But Indonesia's economy has been expanding at an average of close to 6% a year for the last four years, helped by soaring prices for its natural resources. That growth has spread beyond the urban centers of Java and Bali to far-flung spots across the 17,000-island archipelago, including the coal mines of Kalimantan, the palm-oil and rubber plantations of Sumatra and the clove, cocoa and coconut farms of Sulawesi. In the 10 years to 2009, the size of Indonesia's middle class more than doubled to 93 million people, according to the Asian Development Bank.
The trend is causing companies to change how they price, produce and promote their products, reaching further outside of the companies' traditional strongholds. Honda now bases its Indonesia sales projections in part on prices for products such as palm oil and cocoa. The Japanese company is pitching to miners and plantation workers by using promotional caravans that put on festivals in rural areas, complete with dancers, folk singers and the company's latest motorcycles and scooters. Honda motorcycle sales in the first half were up more than 25% from a year earlier, says Johannes Loman, executive vice president and director of PT Astra Honda Motor, which manufactures and markets Honda motorcycles and scooters in Indonesia. "Sales move with the prices of palm oil, cocoa, rubber and coal," he says. "The prices are higher than they were a year ago, so we are expecting growth will increase."
Anglo-Dutch consumer-goods maker Unilever says that while Java has accounted for the vast majority of the company's Indonesia sales for decades, the other islands soon will constitute about half. "Rural areas are getting richer from plantations and natural resources," says Maurits Lalisang, president director of PT Unilever Indonesia. "The money is spreading." Indonesia's second-largest supermarket chain, PT Matahari Putra Prima, plans to quintuple its number of stores, setting up on the eastern islands of Ambon and Irian Jaya. Sales have jumped at new stores in small cities as farm families arrived in trucks to buy TV sets, clothes and cellphones. The company's army of sales assistants have to explain the differences in hair conditioners and cosmetics to rural consumers used to the limited selection at mom-and-pop stores in villages.
Vietnam Aug coal output may dip, to hike export tax-reports
HANOI, Aug 3 (Reuters) - Vietnam will raise its coal export tax to 20 percent next month from 15 percent, as the country moves to save the fossil fuel for domestic consumption while coal production in August would fall from previous months, state-run newspapers reported.
Coal will take over from hydro power as the leading fuel for new electricity generation in Vietnam, so far a net coal exporter, in the next five years, state utility Vietnam Electricity group has said.
Euro Coal-Weak dollar gives coal a 75c boost
LONDON, Aug 2 (Reuters) - Prompt physical DES ARA coal prices rose by around 75 cents a tonne on Tuesday in thin trading, bolstered by the dollar's weakness, a rise in oil prices and the emergence of limited buying after a hiatus of a few weeks.
Brent crude oil futures shed earlier losses and rose on Tuesday afternoon as the dollar index turned negative ahead of an imminent deal to avert a U.S. debt default.
Oil-Oil slips on U.S. deficit, ratings worries
LONDON, Aug 3 (Reuters) - Crude oil prices fell after ratings agency Moody's assigned a negative outlook to the United States, inflaming worries of falling demand as the world's top oil user and the euro zone continue to face long-term economic challenges.
"Fears for demand destruction are ever-present, while weak manufacturing PMI numbers from across the globe this week only add fuel to economic concerns," VTB Capital's Andrey Kryuchenkov said. "The market is starting to look weak technically and persistent risk aversion on the broader market could drive crude lower in the short run. No one is prepared to go long just yet."
Oil Climbs as Stimulus Speculation Counters Economy, Gain in U.S. Supplies (Source: Bloomberg)
Oil rose from a five-week low in New York as speculation that the Federal Reserve may start another stimulus program countered signs of a slowing economy in the world’s biggest crude-consuming nation. Futures climbed as much as 0.7 percent for the first gain in five days. U.S. equities rebounded after the Wall Street Journal reported three former top officials at the Fed said the central bank should consider a new round of securities purchases to bolster economic growth. Oil slid yesterday after reports showed U.S. service industries expanded in July at the slowest pace in 17 months and crude stockpiles climbed a second week. Crude for September delivery gained as much as 62 cents to $92.55 a barrel in electronic trading on the New York Mercantile Exchange and was at $92.42 at 10 a.m. Sydney time. The contract yesterday dropped $1.86 to $91.93, the lowest since June 27. Prices are 12 percent higher the past year.
Commerzbank expects oil prices to continue falling
Aug 3 (Reuters) - Commerzbank said Wednesday it expects oil prices to continue falling, as another drop in strategic oil reserves could reflect a rise in commercial oil stocks, putting pressure on its prices in the current market climate.
"It will be interesting to see whether there has been another drop in strategic oil reserves," Commerzbank said as it awaits the official inventory data to be published by the U.S. Department of Energy Wednesday afternoon.
Russia oil output stays ahead of Saudi in July
MOSCOW, Aug 2 (Reuters) - Russia matched a post-Soviet record by pumping 10.26 million barrels of crude oil per day in July, retaining its title of top producer despite closest rival Saudi Arabia rapidly closing the gap.
Russia also pumped 10.26 million bpd in May this year and in October 2010. In June the rate was 10.2 million bpd.
China cracks down on lead-acid battery industry, 1,598 plants shut
HONG KONG, Aug 2 (Reuters) - China had phased out 583 lead-acid battery producers, processor and recyclers as of end-July as Beijing cracks down on polluting operations, the Ministry of Environmental Protection said on Tuesday.
The nationwide crackdown covered 1,930 plants, of which 1,015 plants also closed temporarily for checks or upgrading, making the total 1,598 plants, or 82.8 percent shutting down, according to a statement on the ministry's website.
China Minmetals calls for rare earth production suspension
BEIJING, Aug 3 (Reuters) - State-owned trader Minmetals has called on all firms in the rare earth sector to adhere to a national output quota by suspending production starting from the beginning of August.
"We propose that production should be proactively halted with immediate effect at the beginning of August 2011 in order to guarantee the stable operation of the rare earth market," the company said on Tuesday.
Australia's Lynas Corp: rare earths recoveries exceed plan
KALGOORLIE, Aug 3 (Reuters) - Australian miner Lynas Corp , looking to break China's grip on the global market for rare-earths, is running ahead of plan for metal recoveries from its recently commissioned Mount
Weld concentrator, the firm said on Wednesday.
Lynas aims to meet 20 percent of world demand for rare earths from its operations in west Australia. Currently, China produces about 97 percent of world supply of rare earths, which are used to make high-tech
electronics, magnets and batteries.
Northern Minerals targets rare earths production in 5 years
KALGOORLIE, Australia, Aug 2 (Reuters) - In the race to produce rare earths outside China, which supplies most of the world's output of the metal elements used in high-tech, Australian explorer Northern Minerals could be the next hot play.
Northern Minerals unveiled encouraging drilling results from its Browns Range project in Western Australia last week, where it said it found a high proportion of two of the heavy rare earths elements that are in tightest supply.
Australia's Fortescue sees iron ore profit margin rising
KALGOORLIE, Australia, Aug 3 (Reuters) - Fortescue Metals , Australia's third biggest iron ore miner, expects profit margins to improve as it expands operations and ramps up production, Chief Executive Nev Power said on Wednesday.
Power said margins were currently holding at around $100 per tonne, but were set to rise once the company's Solomon deposit is brought into production, and Fortescue benefits from economies of scale and more accessible ore.
Ukraine's Metinvest boosts steel output in Jan-Jul
KIEV, Aug 2 (Reuters) - Steel output at Ukraine's plants owned by Metinvest Holding rose by 8 percent year-on-year in January-July 2011 to 8.5 million tonnes, local specialist news agency UGMK said on Tuesday.
Metinvest, Ukraine's largest mining and metals group, which is owned by the country's richest man Rinat Akhmetov, operates three steel plants located in eastern Ukraine.
NMDC 2011/12 iron ore output seen at 28-29 mln T
NEW DELHI, Aug 2 (Reuters) - India's state-run miner NMDC expects to produce 28-29 million tonnes of iron ore in 2011/12, its chairman said on Tuesday, slightly down from an earlier estimate because of mining hurdles such as stricter green laws.
NMDC, which produces about 15 percent of India's iron ore and mainly supplies the domestic market, had in March set an output target of 31 million tonnes. In 2010/11, NMDC's production was 25 million tonnes.
Xstrata boosts interim dividend, sees stronger H2
LONDON, Aug 2 (Reuters) - Anglo-Swiss miner Xstrata more than doubled its interim dividend on Tuesday and pointed to a stronger second half, as ongoing tightness in the copper market helps the group recover from a flood-hit start to 2011.
The fourth-largest UK-listed diversified miner lifted its interim dividend to $0.13 on the back of a 30 percent rise in headline profits, and said it would use a progressive dividend policy to return cash to shareholders.
Brazil's Usiminas see steady prices, cost pressures
SAO PAULO, Aug 2 (Reuters) - Steady steel prices and raw materials costs may bolster Brazilian steelmaker Usiminas' results through year-end, executives said on Tuesday, while offering little hope for a substantial improvement in earnings.
The price of iron ore and coking coal, two key steel ingredients, will remain stable, ending a round of cost increases that cut into profit in five of the last seven quarters, they said. But Usiminas cut its outlook for steel sales, undermining the chance to gain from better cost conditions.
Ferrexpo H1 profit up 86 pct, sees strong iron ore demand
LONDON, Aug 3 (Reuters) - Ukrainian iron ore producer Ferrexpo posted an 86 percent jump in core profit in the first half, in line with expectations, and said demand for the key steelmaking ingredient is expected to remain strong in the medium term.
EBITDA surged to a record $401 million on higher iron ore prices and a 1.2 percent growth in higher grade pellet production. The company had been expected to post EBITDA of around $400 million, according to a consensus of eight analysts provided by the company.
Iron Ore-Spot prices at 2-1/2-month top on brisk China demand
SINGAPORE, Aug 3 (Reuters) - Spot iron ore prices rose to 2-1/2-month highs and offers remained strong on Wednesday, buoyed by firm steel demand in top consumer China and limited cargoes in the physical market.
The price of iron ore with 62-percent iron content rose 50 cents to $179 a tonne on Tuesday, according to the Platts index.
China industry ministry sees 2011 steel exports up 5.7 pct
BEIJING, Aug 2 (Reuters) - China is likely to export 45 million tonnes of steel products in 2011, up 5.7 percent compared with last year, the industry ministry said on Tuesday.
In a statement published on its website (www.miit.gov.cn), the Ministry of Industry and Information Technology also said that imports were likely to be 16 million tonnes compared with 16.43 million tonnes in 2010.
China to launch own iron ore price index in Aug -CISA
BEIJING, Aug 2 (Reuters) - China plans to launch its own iron ore price index in August this year, the China Iron & Steel Association (CISA) said on Tuesday, in a move designed to improve the country's pricing power over the key steelmaking ingredient.
The index will be published on a weekly basis and will include both domestic and import prices, CISA said in a statement released before a press conference in Beijing.
Italy steel exports rise but lag imports -industry
MILAN, Aug 1 (Reuters) - Italy's steel exports rose 13.8 percent year-on-year in the first five months of 2011, powered by sales on the European Union markets, but lagged behind rising imports, according to industry body Federacciai.
The EU's second-biggest steel producer after Germany exported 7.475 million tonnes in the January-May period, while its steel imports jumped 20.9 percent to 8.441 million tonnes, Federacciai data showed.
METALS-LME copper down on weak U.S., euro zone economies
SHANGHAI, Aug 3 (Reuters) - LME copper edged down on Wednesday as a last-minute deal to raise the U.S. debt ceiling failed to dispel longer-term worries about growth in the world's largest economy, while financial market pressure on Italy stepped up.
The United States still faces a possible credit rating downgrade by Standard & Poor's in the near term and by Moody's Investor Services in 12 to 18 months.
PRECIOUS-Gold hits record on global growth worries, Europe debt
SINGAPORE, Aug 3 (Reuters) - Gold hit a record high on Wednesday, as investors made a beeline for bullion to shelter from the impact of a deteriorating global economic outlook and Europe's worsening debt crisis.
Spot gold rose to an all-time high of $1,671.39 an ounce, hitting its ninth record in 16 trading sessions and up 17 percent so far this year. It was trading at $1,661.89 by 0632 GMT, up 0.2 percent from the previous close.
Gold Rallies to Record for Second Day as Signs of Slowdown Fire Up Demand (Source: Bloomberg)
Gold futures rose to a record $1,675.90 an ounce on signs that the U.S. economy is faltering amid debt woes, boosting demand for the precious metal as an investment haven. Moody’s Investors Service said the U.S. credit rating may be downgraded and yesterday placed the country on negative outlook after President Barack Obama signed into law a plan to lift the nation’s borrowing limit and cut spending. Gold priced in euros also reached a record on concern that slowing growth will hamper efforts by Spain and Italy to trim debt. “People want gold for safety,” Frank Lesh, a trader at FuturePath Trading LLC in Chicago, said in a telephone interview. “People are running away from currency volatility, economic weakness and political instability. Gold is an international currency, and no government can print any of it.”
Baltic index falls, growth worries watched
LONDON, Aug 2 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell to its lowest in more than three months on Tuesday as a continued slowdown in cargo trade took its toll.
Brokers said the market was watching for further signs of slowing economic growth, which would hit demand for commodities, after weak global manufacturing and consumer spending data was published this week.
