Corn
US corn futures end higher on worries about the US crop and outside market support. Monday's weekly USDA crop progress report, which showed greater-than-expected crop deterioration, reaffirmed concerns about yields. Some traders and analysts are now talking about national yields below 150 bushels per acre, which would ensure supplies remain uncomfortably tight throughout next year. Outside markets, including stronger equities, added support. Weak demand is limiting gains. CBOT Sept corn ends up 9 3/4 cents to $7.30 1/4 per bushel. Dec corn sets another contract high, ends up 9 cents to $7.43 1/2
Wheat
US wheat futures surge on a variety of crop troubles and optimism about demand. Worries about spring wheat crop in northern Plains, hard red winter crop in southern Plains, as well as a delayed harvest in Europe, boost the market, analysts say. An Egyptian purchase of Russian wheat was seen as negative by some as they bypassed US wheat, but others noted it was at a higher price and ultimately the US could see more demand. "There's a lot of speculation that supplies will get tight enough that (Russia) will start cutting back on their shipments," adds Tom Leffler of Leffler Commodities. CBOT Sep wheat ends up 21 3/4c to $7.57 1/4 a bushel; Sep KCBT wheat surges 19 1/2c to $8.41; Sep MGEX wheat up 7c to $9.50 1/4.
Rice
US rice futures end flat as the market hovers below the 2.5-year highs set earlier this month. September contract is up 18.2% since June 29 due to US crop worries and firm world prices. Sep CBOT rice ends down 1/2c to $16.96 1/2 per bushel. Jan rice ends down 1/2c to $17.60. Sep contract has peaked at $17.36 earlier this month.
US new-crop corn hits contract high as ratings fall
SINGAPORE, Aug 23 (Reuters) - Chicago new-crop corn climbed to a contract high, while soybeans rose to a near one-month top as the condition of the U.S. corn and bean crops continued to slide, raising concerns over supplies.
"It is certainly providing some support for the grains markets led by corn," said Brett Cooper, a senior manager of markets at FCStone Australia. "But it is not a surprise as the crop ratings report has not done more than to confirm weather impact on yields."
US Midwest soy at risk of lower yields, too dry
CHICAGO, Aug 22 (Reuters) - Soybean and corn yield potential across the heart of the U.S. Midwest will likely face further losses if rains fail to come soon, a leading agricultural meteorologist said on Monday.
"The driest areas so far this month have stretched from southeast South Dakota, across southern Minnesota, the northern and eastern half of Iowa into central Illinois and southwest Indiana," John Dee, a private meteorologist closely watched by the U.S. grain trade, told the Reuters Global Ags Forum.
S.Africa maize crop forecast seen down on wet weather
JOHANNESBURG, Aug 23 (Reuters) - South Africa is likely to cut its maize output forecast for the May 2010/April 2011 season as continued wet weather in some parts of the country delay the harvesting process and damage crops, a Reuters survey showed on Tuesday.
The government's Crop Estimates Committee (CEC) seventh maize output forecast for the 2010/11 season would come in at 10.63 million tonnes, compared with a previous government forecast of 10.854 million tonnes, according to the average estimates of seven trading houses polled by Reuters.
From taste to yields, hybrid rice's many hurdles in India
CHENNAI, India, Aug 22 (Reuters) - India needs to boost rice yields by nearly a third by 2025 to feed its growing 1.2 billion population, but hybrid technology that could increase productivity faces challenges -- from sharply varying yield advantages to a fastidious Indian palate.
Although a crop that is grown round-the-year and which helps meet almost half the calorie needs of 70 percent of Indians, rice yields in the world's second-biggest producer remain low at 2.17 tonnes a hectare, less than half the global average.
Ohio corn yield seen falling on late seeding, heat
FISHERS, Indiana, Aug 22 (Reuters) - Corn yield prospects in Ohio were highly variable and generally down from last year as planting delays and periods of sweltering heat that rushed crop development dragged down crop potential, scouts on an annual crop tour said Monday.
Soybean pod counts were up slightly from a year ago, but the crop's lagging maturity and dry soil conditions suggest the crop may struggle to match last season's yields, scouts on the Pro Farmer Midwest Crop Tour said.
US corn ratings fall more than expected
CHICAGO, Aug 22 (Reuters) - U.S. corn condition ratings declined more than expected last week while the soybean crop also deteriorate as dry weather in the U.S. Midwest stressed the crops as they near maturity, U.S. Agriculture Department data showed late on Monday.
USDA rated the corn crop at 57 percent good to excellent, down 3 percentage points from the previous week and down 13 points from a year ago. A Reuters Poll of analysts early on Monday forecast corn ratings to fall by 1-2 percentage points after ratings for each crop stabilized during the previous week.
Fears grow of rain damage to German wheat crop
HAMBURG, Aug 22 (Reuters) - Rain is raising concerns about damage to the quality of this year's wheat crop in Germany, the European Union's second-largest producer, although parts of the country have achieved a satisfactory harvest, traders and analysts said on Monday.
Repeated rainfall for weeks has been disrupting Germany's wheat harvest, which would normally be approaching completion by now.
Ukraine '11 grain crop at 34.2 mln T as of Aug 22
KIEV, Aug 22 (Reuters) - Ukraine's farms have completed the 2011 early grain harvesting, threshing 34.2 million tonnes with the average yield of 3.06 tonne per hectare, the Agriculture Ministry said on Monday.
The ministry said in a statement farms had threshed 11.2 million hectares of early grains mostly wheat and barley. It said farms harvested a total of 23.2 million tonnes of wheat bunker weight and 9.5 million tonnes of barley.
Australia 2010/11 wheat exports may jump about 28 pct
SYDNEY, Aug 22 (Reuters) - Australian wheat exports may rise about 28 percent to hit 19 million tonnes in the marketing year to Sept. 30, analysts said on Monday, adding shipments from what is typically the world's fourth-biggest exporter could approach record levels.
"We expect exports of about 19 million tonnes because of demand for feed wheat in Southeast Asia," said Luke Mathews, an agricultural commodities strategist at Commonwealth Bank of Australia.Wheat exports in 2009/2010 were 14.790 million tonnes.
Russia Harvests 57.9 Mln Tons Grain To August 23
Russia harvested 57.9 million metric tons of grain to Aug. 23 on 22 million hectares, or 50% of the total area to be harvested, the Agriculture Ministry reported. The average yield was 2.64 tons a hectare, compared with 2.07 tons a hectare a year ago. The ministry said grain exports since the beginning of the current marketing year July 1 to date totaled 4.4 million tons, 11% more than in the corresponding period in the previous marketing year. Wheat harvest to date was 37.3 million tons on 12.6 million hectares, or 49% of the total area to be harvested. The average yield was 2.97 tons a hectare compared with 2.32 tons a hectare a year ago and 2.89 tons a hectare in 2009. Barley harvest to date was 12.2 million tons on 5.1 million hectares, or 64% of the total area to be harvested, with the average yield of 2.38 tons a hectare. The government expects this year's grain harvest at 90 million tons. Last year's harvest fell to 60.9 million tons from 97.1 million tons in 2009 due to the summer drought.
Crop Tour Sees Lower Ohio, South Dakota Corn Yield Than 2010
Ohio is expected to produce a lower corn yield than last year, following serious delays in planting, while the outlook for the soybean crop is brighter, according to the early results of a U.S. crop tour. The Pro Farmer Midwest Crop Tour pegged the average corn yield in Ohio at 156.3 bushels an acre. Last year, the tour estimated the yield at 165.6 bushels an acre. The tour estimated Ohio will have an average of 1,253.2 soybean pods per three-foot-by-three-foot square. Last year, the estimate was 1,201 soybean pods. Crop conditions deteriorated as the tour progressed west from its starting point in Columbus, Ohio. Fields in western Ohio had corn ears with missing kernels due to excessive heat and dryness. Western Ohio seemed to miss out on rains that benefited crops in the center of the state, they said. "The corn crop might not be as big as a lot of people are hoping," said Richard Guse, a tour participant and farmer from Minnesota. The scouts in Ohio were on the eastern portion of the tour.
Several groups departed from Columbus on Monday morning to survey different routes and met up in Fishers, Ind., on Monday night to compare their results. The western portion of the tour began in South Dakota. The Pro Farmer Midwest Crop Tour pegged the average yield for South Dakota from the corn fields toured Monday across the three key cropping districts at 141.10 bushels per acre. That's a 1.8% decline from the 143.59 state average from last year's tour. The U.S. Department of Agriculture's August crop report estimated South Dakota's corn yield at 141 bushels an acre. The three-year tour average is 146.06. The South Dakota corn crop is looking similar to the USDA's August projection, said Chip Flory, editor of the Pro Farmer Newsletter and director of the western portion of the tour.
There was some variability reported for the crop from field to field, with signs of stress from a lack of rain in recent weeks, said Terry Johnston, a tour consultant from Parkersburg, Iowa. There was also evidence of some storm and hail damage from heavy storms that hit crops in early July, he added. Tour observations revealed an average pod count in three-foot by three-foot squares of 1,106.66 from the 39 samples. Last year's pod count was 1,262.28, when 52 samples were taken. The three-year tour average is 1,034.93. "The bean crop did not display anything spectacular and nothing really bad either," said Ken Eckhardt, a tour participant and farmer from Minnesota Lake, Minn. The common theme among tour participants was soybeans were generally healthy and weather during the next few weeks will determine what bean yields will be for the state. The soybean crop could still be strong if it gets decent rain soon.
Scouts from the eastern and western groups will converge on Austin, Minn., on Thursday. Pro Farmer will issue corn and soybean crop estimates Friday, based partly on results from the tours.
China Food Prices Post Gains As Holiday Demand Rises
Prices across key food categories have risen ahead of China's consumption-heavy Mid-Autumn Festival next month, the Ministry of Commerce said. Food prices are closely watched as they were the leading culprit behind high inflation last month. Inflation began climbing again in the last two weeks despite government efforts to contain prices. Bellwether wholesale pork prices rose 0.1% in the week to Sunday, compared with a week earlier, the ministry said. "These food price increases will definitely impact inflation, as food has been a key factor in the rising consumer price index," said Chenjun Pan, an agriculture analyst for Rabobank Group. Pork wasn't the sole food item that saw price increases in recent weeks, as demand from the Mid-Autumn Festival in September contributed to larger consumption pressures, the ministry said. The average price for 18 types of vegetables rose by 2.1% in the period, after falling 0.4% the previous week, it said.
This is the second straight week that pork prices have inched up. Last week, wholesale prices rose by 0.1%, snapping three consecutive weeks of flat or lower prices. Food prices account for about a third of the inflation index. Chen warned that inflation in August is likely to stay at "high levels," after reaching their highest point in three years last month. Pork prices surged 57% on year in June, prompting the government to release frozen meat stockpile and enact fiscal measures to raise China's hog population. The price increase spilled over to a surge in U.S. lean-hog futures last month. China will likely start importing more pork if prices continue to rise, a senior state academic told state media last week. "The country will continue to see high pork prices in the next few months," said Wang Jimin, a deputy director of the agricultural economics and development institute at the Chinese Academy of Agricultural Sciences, in a China Daily report.
The U.S. exported 56,325 metric tons of pork to China in the first six months this year, 16 times higher on year, according to U.S. Meat Export Federation data.
Bunge: Accepting Syngenta's Modified Corn Could Hurt Its China Sales
Bunge Ltd.'s North American unit said it is surprised and disappointed that Syngenta AG has sued to force the grain company to accept its Agrisure Viptera modified corn seed because it could hurt its supply chain to China. Bunge North America said it has told Syngenta that it won't accept the corn until the seeds obtain approval from China, which it considers a major export market. Syngenta expects to obtain approval in early 2012. "Until this approval occurs, we must protect the integrity of our export supply chain by not accepting Agrisure Viptera and other varieties that do not have major export market approval," said Soren Schroder, Bunge North America's president and chief executive. According to press reports, Syngenta filed suit last week to block Bunge from banning a variety of its biotech corn because only 1% of the U.S. corn crop will be exported to China this year.
"Bunge's decision not to accept Agrisure Viptera is consistent with the North American Export Grain Association's policy to advocate that technology providers receive all major international approvals for a trait prior to seed sales," Schroder said.
New Brazil Forest Code 'Step Backward' -Ex-Environment Minister
The possible passage of a new environmental code in Brazil that creates "amnesty" for deforestation and encourages encroachment upon forested areas would be a "step backward," former environment minister and presidential candidate Marina Silva said. Brazil's Senate may vote as soon as this month on a revision of its so-called forest code, a set of laws created in 1965 that obliges farmers to preserve native vegetation along rivers and hillsides and on as much as 80% of their land. The legislation that passed in the lower house would allow farmers to continue production on part of the land they cleared in violation of the law, as well as permitting states to define what, if any, kind of economic activity can be practiced in the protected areas. Silva, an environment minister under President Luiz Inacio Lula da Silva who ran against Lula's hand-picked successor Dilma Rousseff in the 2010 presidential elections, said that the bill that passed the lower house ran counter to the Brazilian public's wishes.
"The Senate may surprise us" and vote against the existing bill, Silva told reporters in Sao Paulo. "The lower house was out of step with society, 80% of which opposes the proposed changes." A June public opinion poll carried out by the Datafolha group showed 80% of Brazilians against the bill passed in the lower house at the end of May. The bill passed with 410 votes in favor and 63 against. Environment Minister Izabella Teixeira said in June that, should the existing bill be approved by the Senate, she would recommend Rousseff strike portions of it because they encourage further deforestation. But Rousseff needs to hold together her governing coalition, which has strongly supported the bill, at a time of great stress due to recent corruption scandals that have forced out dozens of members of allied parties from high-ranking government offices.
Silva said she hopes Rousseff will count on "the allied base that is the Brazilian population" to remove parts of the bill that Silva says will encourage deforestation and soil erosion. The current code is generally flouted, with about 95% of Brazilian farmers in violation of the law, according to supporters of the bill. According to estimates, farmers would have to abandon 80 million hectares of cultivated land to let the forest reclaim the land. Brazil currently cultivates about 280 million hectares of its 845 million hectares (8.45 million square kilometers) in total area. But opponents of the proposed changes in the forest code say the bill would encourage deforestation, which last year wiped out more than 6,400 square kilometers of Brazilian rainforest, and benefit soybean farmers and cattle ranchers who have traditionally led the encroachment into the country's Amazon region.
Voracious China Plays Sugar Daddy
Sugar's scorching rally may be far from over, as expectations of a surge in imports by China are keeping markets sweet. Ageing cane and poor weather in Brazil, the world's largest sugar grower, had already reduced hopes for a large global surplus in 2011-12 and sent front-month New York raw sugar futures surging more than 40% from May lows on the Intercontinental Exchange. The front-month contract for October delivery jumped as much as 6% Friday, to 31.18 cents a pound, after influential Brazilian consultancy Canaplan slashed its estimate for the sugar cane harvest in the country's main producing area by 8.5% to 476 million tons. That would be the first yearly drop in production there in a decade. Traders and analysts say prices could get another push, and possibly revisit this year's high of 36 cents, thanks to the sweet tooth of China's growing middle class.
Several analysts forecast Chinese imports could rise as much as 50% in the 2011-2012 season to three million metric tons--exceeding its World Trade Organization limit of 1.9 million tons for the first time and making it the world's second-largest importer after Europe. "China will most probably become the new strategic player in the world market" next season, said Sergey Gudoshnikow, senior economist at the London-based International Sugar Organization. "If there's a sudden dearth of Brazil's crop and China comes in, there's no knowing how high prices could go." To be sure, Asia has long been a significant influence on world sugar markets. Analysts credit Asian demand with doubling the size of world sugar trade over the past 20 years.
China's imports have increased rapidly, from 600,000 tons in 2007-08 to an estimated two million tons in 2010-2011. That trend should continue, given that the consumption should rise 2% to 15.25 million tons in 2011-2012, outstripping production of 12.5 million tons, said Jonathan Kingsman, who runs a Switzerland-based sugar consultancy.
Wheat, Corn Futures Decline in Chicago, Snapping Three-Day Advance of 6.1% (Source: Bloomberg)
Wheat and corn futures dropped in Chicago, snapping three days of gains. Wheat for December delivery slid as much as 0.5 percent to $7.81 a bushel and traded at $7.82 at 8:07 a.m. Singapore time, after advancing 6.1 percent in three days and reaching a two- month high. Corn fell 0.1 percent to $7.425 a bushel after gaining 4.3 percent in three days and posting a 10-week high. Futures had gained on speculation that dry weather in the U.S. will hurt yields. About 100 farmers, analysts and grain buyers are traveling across the Midwest this week, taking field samples to gauge the size of the corn and soybean crops. Preliminary reports in central Indiana and Nebraska indicated that corn yields and soybean-pod counts may be lower than last year. The tour estimated lower corn yields in Ohio and South Dakota. Soybean-pod counts may be larger in Ohio and smaller in South Dakota than in 2010.
Australian Wheat Shipments at 2004 High Easing Shortages: Freight Markets (Source: Bloomberg)
Australia may displace the European Union as the world’s second-biggest wheat shipper as cargoes jump to an eight-year high, easing a shortage that drove global food costs to a record. The country may export about 18 million metric tons in the 12 months from October, according to the median estimate in a Bloomberg survey of eight analysts and traders. That’s 1 million tons more than predicted by the U.S. Department of Agriculture, and the most since 2004 based on that data. Prices may decline to $6.90 a bushel by the end of December from $7.7175 now, the median of the estimates showed. Wheat declined 16 percent since February as farmers planted more crops in response to prices that rose 47 percent last year. Extra supply is also coming from Russia, once the fourth-biggest shipper, which resumed sales last month after an almost year- long ban imposed as drought ruined crops. Australia’s harvest, which starts in October, is being closely watched because the USDA is still forecasting a supply shortage globally.
Wheat Rallies to Two-Month High as U.S. Spring-Crop Conditions Deteriorate (Source: Bloomberg)
Wheat rose to a two-month high after a government report showed adverse weather in the northern U.S. has deteriorated spring crops. About 62 percent of spring wheat, grown in northern states, was in good or excellent condition as of Aug. 21, less than a week earlier and below the year-earlier rating of 82 percent, the U.S. Department of Agriculture said yesterday after the close of trading in Chicago. Excess rains during planting, hot weather and disease have pressured yields, the North Dakota Wheat Commission has said. “The spring-wheat crop has really struggled all year long,” said Louise Gartner, the owner of Spectrum Commodities in Beavercreek, Ohio. “Yields are coming in light. Although quality is decent, you’re seeing a drop in total spring production.”
Sugar, coffee rise early as commodities advance
LONDON, Aug 23 (Reuters) - ICE sugar, coffee and cocoa futures rose in early trade, swept up in a broad-based advance in world equity and commodity markets linked to stronger-than-expected Chinese and German economic data.
Raw sugar futures were firmer with the market moving within striking distance of contract highs.
Vietnam Coffee-New beans on offer but demand thin
HANOI, Aug 23 (Reuters) - Coffee beans from the next harvest due in October are being offered in Vietnam, but demand remains thin as buyers are waiting for prices to stabilise, traders said on Tuesday.
Coffee prices in Vietnam, the world's second-largest producer after Brazil, vary widely at the moment as stocks have almost run out, leading to delays involving at least 70,000 tonnes.
Mexico's sugar exports to fall from record high
MEXICO CITY, Aug 22 (Reuters) - Mexico's sugar exports will fall from a record high next season after drought hit the country's crop and demand for high fructose corn syrup imports started leveling out, the industry's chamber said on Monday.
Mexico ships nearly all of its sugar to the United States under a free trade deal. Shortages have helped keep prices high and demand for Mexican sugar strong, with exports reaching a record 1.45 million tonnes last year.
M&A in Brazil sugar cane sector passes peak
SAO PAULO, Aug 22 (Reuters) - Consolidation in Brazil's cane sector has crested, after the 2008 global financial crisis unleashed a wave of mergers and acquisitions in the world's largest sugar industry.
Despite a slowdown after the big deals of 2009 and 2010, milling groups have not announced new investments in greenfield projects. Analysts say new mill investments have to start now to be ready by 2014-15, when the current excess crushing capacity will be exhausted by expansion in the cane crop.
Sun, rain mix to boost Ivorian cocoa crop hopes
ABIDJAN, Aug 22 (Reuters) - Ivorian cocoa farmers reported a healthy mix of rain and sun across most of the world's top grower last week, boding well for the 2011/12 main crop after this year's bumper harvest.
Farmers said they were happy as sunshine improved after several weeks of cloudy and cooler weather that had threatened the good growth of the crops during a key period for development ahead of the new season starting in October.
China gas tax rebate may nudge spot LNG imports up
PERTH/SHANGHAI, Aug 23 (Reuters) - A tax rebate on natural gas imports may accelerate China's purchases of liquefied natural gas, but only marginally given high prices for spot supplies and the nation's policy of using long-term contracts.
Spot LNG prices in the Pacific have risen over 50 percent since March to more than $15 per million British thermal units (mmBtu), well in excess of the $8.28/mmBtu average price China paid for LNG imports in July.
Oil Rises a Third Day as Industry Report Shows Decline in Crude Stockpiles (Source: Bloomberg)
Oil advanced for a third day in New York as investors bet that shrinking U.S. crude supplies indicate that fuel demand may recover in the world’s biggest consumer of the commodity. Futures rose as much as 0.5 percent after the industry- funded American Petroleum Institute said supplies fell 3.34 million barrels to 347 million last week. An Energy Information Administration report today may show inventories climbed for a second week, according to a Bloomberg News survey. Prices gained yesterday amid speculation the Federal Reserve will bolster efforts to stimulate the U.S. economy. “If we see a draw in the EIA numbers then that could provide some support to the oil price,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne, who predicts U.S. futures will average $93 a barrel in the third quarter. “Anytime there’s a tightening in the market, people start to get excited.”
Oil gains on Libya fighting, manufacturing data
LONDON, Aug 23 (Reuters) - Crude oil prices rose on Tuesday, supported by better than expected manufacturing data in Germany and China and by uncertainty in Libya where government loyalists staged a fight back.
"There's light at the end of the tunnel in Libya and any signs that the conflict is ending will push Brent down as there will be more oil into the Atlantic basin," Helen Henton, analyst at Standard Chartered said.
Malaysia's Petronas to start $5.1 bln upstream gas project
KUALA LUMPUR, Aug 23 (Reuters) - Malaysian state oil firm Petronas said on Tuesday it will develop the 15 billion ringgit ($5.1 billion) North Malay Basin project to develop gas and build a pipeline to transport it.
The project comprises nine discovered gas fields about 300 kilometers off the coast of the peninsula. Petronas will also develop a new 200 km pipeline to transport the gas.
China says oil stake in Libya benefits both countries
BEIJING, Aug 23 (Reuters) - China's oil stake in Libya benefited both countries, a Chinese commerce official said on Tuesday, answering a question about a Libyan rebel official's warning that Chinese oil companies could lose out under a new government.
"China's investment in Libya, especially its oil investment, is one aspect of mutual economic cooperation between China and Libya, and this cooperation is in the mutal interest of both the people of China and Libya," the deputy head of the Chinese Ministry of Commerce trade department, Wen Zhongliang, told a news conference.
ENI leads Libya oil race; Russia, China may lose out
MILAN/LONDON, Aug 22 (Reuters) - Italian oil company Eni led the charge back into Libya on Monday as rebels hailing the end of Muammar Gaddafi's rule warned Russian and Chinese firms that they may lose out on lucrative oil contracts for failing to support the rebellion.
Gaddafi's fall will reopen the doors to Africa's largest oil reserves and give new players such as Qatar's national oil company and trading house Vitol the chance to compete with established European and U.S. oil majors.
Copper Futures Climb as Report on China Manufacturing Eases Growth Concern (Source: Bloomberg)
Copper rose the most in more than a week in New York after a report on Chinese manufacturing eased concerns that the economic slowdown is deepening. A Chinese manufacturing index released by HSBC Holdings Plc and Markit Economics showed a preliminary reading for August of 49.8, compared with the final 49.3 for July. Imports of refined copper by China, the world’s largest user, rose for a second month in July, customs data showed yesterday. Inbound shipments of scrap copper jumped 14 percent from a year earlier. “We’re higher across the board in metals, mainly on account of a weaker dollar as well as the release of the Chinese manufacturing number overnight,” Edward Meir, a senior analyst at MF Global Holdings Ltd. in Darien, Connecticut, said in a report.
Copper Climbs on Speculation Fed Will Take Steps to Bolster U.S. Economy (Source: Bloomberg)
Copper rose in New York on speculation the Federal Reserve will act to bolster the economy in the U.S., the world’s second-biggest consumer of the metal. The Fed holds its annual symposium this weekend in Jackson Hole, Wyoming. Last year Chairman Ben S. Bernanke hinted that the central bank might embark on a second round of asset purchases. Prices also gained as figures indicated that manufacturing in China, the largest copper user, may contract at a slower pace. “The important news this week will be obviously Bernanke’s speech in Jackson Hole,” said Andrey Kryuchenkov, an analyst at VTB Capital in London. “That’s what people are waiting for.”
LONDON, Aug 22 (Reuters) - China's aluminium production dropped a gear in July, a development likely to exacerbate an evolving tightness in the domestic market.
Today's figures from the China Nonferrous Metals Industry Association (CNMIA) showed Chinese production slipping by an annualised 320,000 tonnes from June's record run-rate of 19.03 million tonnes.
Brazil mining investment jumps on metals demand
BRASILIA, Aug 22 (Reuters) - Surging investment in Brazil's mining sector will help the country to double iron ore output by 2015 and triple copper production in the same period, the head of Brazil's mining institute, Ibram, said on Monday.
Ibram expects Brazil's iron ore output to more than double to 772 million tonnes by 2015, from 372 million tonnes of the steel ingredient produced in 2010. That is well above the mining ministry's estimate for 585 million tonnes by 2015.
Brazil eyes flexibility in mine royalties-sources
RIO DE JANEIRO, Aug 22 (Reuters) - Brazil's government is considering a proposal that would make it easier to raise or lower mining royalties depending on economic conditions and minerals prices, government sources familiar with the issue told Reuters on Monday.
The move would come as part of a broad overhaul in Brazil's mining sector that would revamp the licensing process and boost state income from mining companies such as top world iron producer Vale that are posting record profits.
China July refined copper imports rise 8.8 pct on-month
HONG KONG, Aug 22 (Reuters) - China's imports of refined copper rose 8.8 percent to a six-month high in July on spot shipments booked in May and June.
Arrivals at the world's top copper consumer rose to 194,280 tonnes of refined copper in July, extending a 19.7 percent gain to 178,638 tonnes in June, a breakdown of the July data by the General Administration of Customs showed on Monday.
China, global steel output near record in July
LONDON, Aug 22 (Reuters) - Chinese and global steel production fell slightly from the previous month but remained near record levels in July, in what is usually a seasonally slower quarter and despite concerns that oversupply and the economic slowdown may weigh on prices.
Global crude steel production grew by 11.5 percent to 127.477 million tonnes in July, compared to the same month last year. That was not far off a record level of 129.865 million tonnes hit in April.
Iran starts moving uranium centrifuges to bunker
TEHRAN, Aug 22 (Reuters) - Iran has begun moving machines that enrich uranium to an underground bunker near the holy city of Qom, a senior official said, a move likely to fan Western fears of an Iranian advance towards nuclear weapons capability.
His announcement was a further sign of the Islamic state's determination to press ahead with enrichment in defiance of international demands that it desist from such activity, which Tehran says will be for peaceful applications only.
METALS-Copper up on China Flash PMI, equities
SHANGHAI, Aug 23 (Reuters) - Copper rose on Tuesday, bolstered by gains in equities and by data showing China's factory output remains robust, but worries about global growth prospects continue to weigh on investor sentiment.
The market will be eyeing European purchasing manager surveys due later in the day, and a speech by U.S. Federal Reserve chairman Ben Bernanke on Friday, for trading cues.
PRECIOUS-Gold climbs to record above $1,910 on growth fears
SINGAPORE, Aug 23 (Reuters) - Spot gold soared to an all-time high above $1,910 on Tuesday, scoring a record top for a fourth consecutive session, as persistent worries about global economic growth burnished bullion's safe-haven appeal.
The precious metal was headed for a seventh straight session of rise and a monthly gain of more than 16 percent, highest since September 1999.
Gold Tumbles in Biggest Decline in a Year (Source: Bloomberg)
Gold dropped the most in a year as some investors sold the metal after signs of slowing growth spurred a rally to a record $1,917.90 an ounce. The relative-strength index of futures in New York has topped 70 since Aug. 8, a signal to some investors that prices were poised to decline. Bullion has jumped 14 percent in August amid speculation that Federal Reserve Chairman Ben S. Bernanke will signal further measures to stimulate the U.S. economy later this week and as debt crises spurred demand for haven assets. “Gold looks very bubbly,” Matt Zeman, a strategist at Kingsview Financial in Chicago, said in a telephone interview. “Gold’s going to continue to suck everybody in. There’s too much risk of a wicked correction lurking around the corner to enter the trade right now.”
Cash Gold Rallies After Declining Most in More Than a Year on Share Gains (Source: Bloomberg)
Gold for immediate delivery rallied after dropping the most in more than a year yesterday. Bullion increased as much as 0.5 percent to $1,837.85 an ounce and traded at $1,836.18 an ounce at 7:47 a.m. Singapore time. The metal jumped to a record $1,913.50 yesterday on speculation that Federal Reserve Chairman Ben S. Bernanke will signal further measures to stimulate the U.S. economy later this week and as debt crises spurred demand for haven assets. “Gold looks very bubbly,” Matt Zeman, a strategist at Kingsview Financial in Chicago, said in a telephone interview yesterday. “Gold’s going to continue to suck everybody in. There’s too much risk of a wicked correction lurking around the corner to enter the trade right now.”
