Funds Adding to Bullish Bets Fueling Biggest Rally Since 2009: Commodities(Source: Bloomberg)
Speculators boosted wagers on higher commodity prices by the most since August as improving prospects for growth in the U.S. and Europe sent prices toward their biggest rally in more than two years. Money managers boosted combined net-long positions across 18 U.S. futures and options by 13 percent to 831,421 contracts in the week ended Oct. 25, Commodity Futures Trading Commission data show. The Standard & Poor’s GSCI Index of 24 raw materials has jumped 10 percent in October, on track for the biggest gain since May 2009. European leaders announced a bailout plan Oct. 27 to help relieve the region’s debt crisis, and the U.S. economy grew by a more-than-expected 2.5 percent in the third quarter. The S&P 500 Index is headed for its largest monthly advance since 1974. The outlook for demand has recovered since September, when the GSCI fell 12 percent, the biggest monthly drop since November 2008, amid concern the global economy was set for another recession.
Corn (Source: CME)
US corn futures end higher on tight farmer selling and technical strength. While the market remains range-bound, technical traders are encouraged by December corn getting above its 200-day moving average. There's little supply-and-demand news, with traders already looking ahead to next month's USDA crop report. Some traders say this year's crop could fall lower than the agency's latest projection. Meanwhile, farmers are flush with cash and see little reason to sell, traders add. "The market is just waiting for another event," says Dave Marshall, an independent broker/advisor. CBOT December corn ends up 3 1/2c at $6.55/bushel.
Wheat (Source: CME)
U.S. wheat futures end mixed after trading both sides of unchanged, as support from corn is offset by lackluster demand. Traders note poor export demand thanks to a flood of competing Black Sea wheat is keeping a lid on the market. World supplies seen as ample, traders add. Corn was the upside leader, and gave support to wheat, as both are used for feed. Lingering worries about the winter wheat crop also supportive, although rain and snow in the southern Plains Thursday expected to help the crop. Dec CBOT wheat ends up 1/2c to $6.44 1/2 per bushel, while Dec. MGEX wheat closes up 2 1/2c to $9.20 1/2. Dec KCBT wheat ends flat at $7.38, while other contracts eke out small gains.
Rice (Source: CME)
US rice futures slump, ending lower as overseas demand for US rice remains weak. The Arkansas Farm Bureau notes that despite small gains Thursday, rice "didn't have the vigor seen in cotton & grains." Adds that the market's upside potential "may be limited by poor milled rice export demand." CBOT Nov rice ends down 20 cents to $16.74 per hundredweight.
US wheat dips after 4 pct rally, corn ticks down
SINGAPORE, Oct 28 (Reuters) - U.S. wheat slid 0.7 percent after last session's biggest jump in two weeks, while corn edged lower as the grain markets took a breather following a rally sparked by Europe's move to resolve its debt crisis.
"At the moment the market is getting a little bit depressed because of economic uncertainties that are still plaguing the world," said Abah Ofon, an analyst with Standard Chartered Bank in Singapore.
Thai 2011/12 paddy crop flood damage seen at 6 mln T
BANGKOK, Oct 28 (Reuters) - Thailand's worst flood in decades is expected to damage around 6 million tonnes of paddy from the current 2011/12 crop, a senior Agriculture Ministry official said on Friday.
"The 6 million tonnes damage is just an initial estimate. We need to conduct a survey again after flood water recedes," Apichart Jongsakul, head of the Office of Agriculture Economy, told Reuters, adding that this is from the major crop.
Argentina's Rosario port gets grains despite strike
BUENOS AIRES, Oct 27 (Reuters) - Grains shipping was normal at Argentina's key port of Rosario on Thursday despite a strike by trucking firms demanding that Buenos Aires province set a guaranteed minimum hauling tariff, an industry official said.
The FETRA group of trucking companies began striking earlier this week in Buenos Aires province and vowed to turn up the pressure by expanding their work stoppage to Rosario, in neighboring Santa Fe province.
Argentina corn area seen at 3.74 mln ha - exchange
BUENOS AIRES, Oct 27 (Reuters) - Argentine farmers will plant 3.74 million hectares with 2011/12 corn for commercial use, the Buenos Aires Grains Exchange said Thursday, down from its week-earlier estimate of 3.50 million hectares.
Recent rains in Argentina's central corn-growing areas have made it easier for growers to plant corn, but the exchange said it changed its area forecast for the world's No. 2 corn exporter for strictly methodological reasons.
EU maize exports outpace wheat this week
PARIS, Oct 27 (Reuters) - The European Union this week granted licences to export 165,000 tonnes of maize, outpacing 163,000 tonnes for soft wheat in a sign of strong demand for European maize.
The EU has now awarded 850,000 tonnes of maize export licences since the beginning of the 2011/12 (July-June) season, compared with just 272,000 tonnes a year ago, official data showed on Thursday.
IGC raises global maize crop to 855 million tonnes
LONDON, Oct 27 (Reuters) - The International Grains Council on Thursday raised its forecast for global maize production in 2011/12 by 10 million tonnes to a record 855 million tonnes accounting for improved prospects in producers including China and Ukraine.
"Improved availabilities are expected to encourage additional feeding in some countries, with forecasts for China and the EU in particular, higher than before," the IGC said in a monthly report. It estimated the 2010/11 maize crop at 826 million.
Egypt extends ban on rice exports - minister
CAIRO, Oct 27 (Reuters) - Egypt has extended the ban on rice exports to ensure there is no shortage of supply, Trade Minister Mahmoud Eisa said on Thursday, adding that it was not clear yet when the ban in place since 2008 would be lifted.
The ban has been extended several times and was due for review in October. Analysts said the government was wary of any move that might hurt domestic supply or prices, stoking public frustration after an uprising that toppled Hosni Mubarak.
Ukraine grain exports still low in Oct 1-24
KIEV, Oct 27 (Reuters) - Ukraine's grain exports totalled about 1.0 million tonnes in October 1-24 against 1.07 million in the same period in September, UkrAgroConsult agriculture consultancy said on Thursday.
The consultancy said in a report the volume had included 173,000 tonnes of wheat, 275,000 of barley and 557,000 of maize.
Philippines sees '12 rice imports still around 500,000T
MANILA, Oct 27 (Reuters) - The Philippines' rice purchases next year may still hover an earlier estimate of 500,000 tonnes despite damages from recent typhoons and will unlikely match imports of the grain in 2011, the Agriculture secretary said on Thursday.
Manila, one of the world's biggest rice buyers, bought a total 860,000 tonnes of the grain this year and remains confident of becoming self-sufficient in the national staple in two years despite strong typhoons that hit the country at least 20 times in a year.-
IGC Ups China 2011-12 Corn Imports, Ukraine Exports Forecast (Source: CME)
The International Grains Council revised up China's corn import forecast for the year from July 1 by 33% to 4.0 million metric tons, which will make the country the six-largest importer by volume. It said China's imports will more than double from last year's 1.7 million tons. A recent price decline has triggered some additional purchases by China, it noted. Despite China's official reports that a record crop is currently being harvested, underlying feed and industrial demand is strong, availabilities appear tight and local prices remain close to all-time highs, particularly when internal transportation costs to southern parts of the country are taken into account, IGC said. China, which in theory aims for self-sufficiency in grains, started to import large quantities of U.S. corn last year and its purchases is one of the reasons for prices hitting a record high in June.
IGC also revised up Ukraine's corn exports forecast by 4.7% to 9.0 million tons. Ukraine exported 5.0 million tons of corn in 2010-11. It revised up Ukraine's corn output projections by 2.0 million tons to 18 million tons, 57% higher. A sharp rise in output and costlier, limited supply from the U.S., the top exporter, has prompted even East Asian buyers to turn to Ukraine to cover requirements, a rare development. IGC revised up Australia's wheat output projections for 2011-12 by 2.7% to 26.2 million tons and its export forecast by 7% to 18.5 million tons. It said Australia was saddled with multi-year high stocks of 8.6 million tons on Oct. 1 and stocks will be little changed a year later despite strong exports. China's wheat imports will likely hit 1.5 million tons, up 50% from an earlier forecast of 1.0 million tons, IGC said.
Bumper Australian Wheat Crop In The Making; Production Could Hit New Record (Source: CME)
Australia looks set to produce another bumper wheat crop with record production a distinct possibility, Brett Cooper, senior manager for markets at INTL FCStone's Sydney office, said. The market consensus is that with harvest slowly gathering pace, the new crop now is estimated in a range of 25 million metric tons to 26 million tons, he said. "But it has more potential to surprise to the upside rather than the downside," particularly with well above average yields seen in the northern wheat belt of Western Australia, he said by phone. Australian wheat production attracts global attention this time of year given the big impact a bumper crop can make to global supply. After domestic demand of around 6 million tons is met, the balance is usually available for export, making Australia one of the top five wheat exporters in the world.
Another market participant said production is broadly expected in a range of 24.5 million to 27.0 million tons. Some are predicting a record crop of 27 million tons as very much possible, exceeding the 26.3 million tons record set last crop year ended March 31. "The reason why you'd be supportive of a number like that is because in the autumn we had pretty good rain" and a strong price signal at planting time in May when benchmark ASX wheat futures for January 2012 delivery were quoting at A$310/ton, he said. This contract peaked in February at A$350/ton. "When you've got those kind of conditions, wheat seems to come out of nowhere," he said. "There's a bigger acreage out there than people think." Many industry participants now expect production in Western Australia to double to 9.5 million tons, making it the second biggest crop on record in Australia's biggest wheat producing state, he said.
In September, the Australian Bureau of Agricultural and Resource Economics and Sciences estimated output this crop year at 26.2 million tons, based on an estimate for Western Australia of 9.0 million tons. While the size of the crop is looking big, a soft finish to the season with good rainfall in September and October and mild temperatures in Western Australia and in the eastern states appear to be producing lower-than-usual protein levels in this year's crop.
Exchange Lifts Argentina 2011-12 Corn View On Good Conditions (Source: CME)
Conditions are good for corn planting in Argentina after recent showers soaked dry fields, leading farmers to increase the area they plan to seed with the grain, the Buenos Aires Cereals Exchange said in its weekly crop report. The exchange raised its forecast for 2011-2012 corn area to 3.7 million hectares, up from the 3.5 million hectares estimated last week. Argentina is the world's third-largest soybean exporter, ranks second in corn, first in soymeal and soyoil, and is a leading exporter of wheat and sunflower seed oil. Corn planting is progressing well after the recent showers. So far, 55.1% of the area expected to go to corn this season has been planted, down about 12 percentage points from the progress made at this point last year. Dry weather through September led many farmers to delay corn planting. So far, sunflower-seed planting is 38.5% complete, with 1.86 million hectares expected by the exchange this season.
Argentina's 2011-2012 wheat crop is developing well after the soaking, and production is expected to total at least 12.6 million tons, according to the exchange. Wheat production during the 2010-2011 season totaled 15 million tons, according to the U.S. Department of Agriculture. The harvest is set to kick off in December. Farmers are expected to plant 18.6 million hectares with soybeans in the upcoming 2011-12 season, up slightly from 18.5 million hectares last season, according to the exchange. Soy planting is just about to start in earnest.
Swiss Re Targets Vietnam As Crop Insurance Picks Up In Asia (Source: CME)
Frequently recurring natural disasters such as droughts and flooding in recent years is opening up a whole new business opportunity for the financial services sector as crop insurance gets increasingly popular in Asia. Swiss Reinsurance Company has helped design a rice insurance scheme in Vietnam and is re-insuring the same and the European insurer is exploring opportunities for similar products across Southeast Asia, a senior company official said. A pilot project for rice insurance has been launched in Vietnam and based on feedback, it may be expanded nationwide and replicated in other countries of the region, Swiss Re's Head of Agriculture for Asia-Pacific, Roman Hohl said in an interview. Southeast Asia which accounts for more than 50% of the global rice trade, is currently reeling under severe flooding. In Thailand, the worst hit by flooding this year, authorities have estimated that at least 14% of the standing crop has already been damaged.
Even though the annual deluge is not entirely new to the region, most of Asia still lacks proper crop insurance schemes. Crop risk management here has mostly involved post-disaster payments from a calamity fund or the national budget rather than a proactive approach in which insurance takes care of the compensation to farmers, Hohl said. Swiss Re will be one of the re-insurers for around 1.0 million hectares, or 13.5% of the annual rice acreage across 7 Vietnamese provinces, for the next three years under a yield-based index insurance. Farmers in a given district will be eligible for compensation if their yield falls below the average yield in the previous years. The entire district, not individual farms, will be taken as a single unit for calculating yields.
Hohl said the product is designed to cover major natural disasters such as typhoons, floods and droughts and there have been discussions with officials of other countries in the region to consider such products but their implementation will depend on the availability of an authentic database on yields. India is the only other country in South and Southeast Asia to have yield-based crop insurance in a big way. In China, it is mostly based on visual inspection of farms and is therefore more subjective and arbitrary, he said. In India, where Swiss Re re-insures agricultural crops, there are more than 20 million farmers, growing as many as 36 crops, insured under various schemes. Hohl said crop insurance has picked up in India in recent years after it has been packaged with agricultural loans and made a mandatory requirement for availing loans. Moreover, the government contributes an average 70% of the premiums, making it affordable to most farmers.
In the Vietnamese experiment, 60% to 100% of the premium will be paid by the government, depending on the income of the insured household. Government support for crop insurance - permissible under World Trade Organization rules - is very high even in developed countries such as the U.S. and Japan, he said.
Trigon Agri Chairman: To Up Harvest Area To 140,000 Hectares In 2012 (Source: CME)
Swedish-listed Trigon Agri A/S is set to post its first full-year profit ever and with plans to increase the harvested area next year the founder and Chairman Joakim Helenius is positive about the future. Estonia-based Trigon Agri, which was established in 2006, is an agricultural company focused on Russia and the Ukraine where the company produces, stores and trades soft commodities with wheat and sunflower seeds its largest crops. After a history of losses, Trigon Agri this summer posted a net profit of EUR16 million for the period January to June and Helenius calls 2011 a break-through for the firm. "We have become a clearly profitable company and it's the first time a company in our peer group has achieved this," Helenius said in an interview. The Chairman said the black figures were achieved through a combination of lower costs and better yield, measured in metric tons/hectare, and sees further improvement ahead.
Next year, Trigon aims at increasing the harvested area to around 140,000 hectares from around 90,000 hectares today. The rise will come from greater use of the around 179,000 hectares the company currently controls and Helenius said the firm's financial situation is now "very, very good", enabling Trigon to finance this plan. "This should affect our result very positively," Helenius said. Trigon is also working on improving efficiency, to attain a higher yield, and aims at having on average seven employees per 1,000 hectares compared with today's 10. Yet, despite efforts to cut costs and increase yields, the firm remains vulnerable on weather conditions. Last year, Russia was hit by a severe drought, slashing its harvest and leading the Kremlin to impose an export ban that wasn't removed until this summer.
This year, Russia had wet weather that brought forward the harvest. Trigon has so far completed around 85% of its harvest. "This is no good year, but it isn't bad either. We can live with a year like this," Helenius said. Trigon Agri also runs a number of dairy farms, in Estonia as well as in the St Petersburg region of Russia, and the firm's chairman said he is planning to expand this business. "There is an enormous opportunity to build up a large commercial milk business in Russia," said Helenius. The average farm in Russia has only three cows while Estonian farms are the most efficient milk producers in the European Union. The company has previously talked about listing its dairy operations. Helenius said that Trigon is now instead looking at taking in a larger co-investor to help finance the dairy expansion and delay a possible listing. "When the business is big enough and the market more promising we will look at a listing," he said.
After Goldman Sachs this summer published an upbeat note on milk, interest for the dairy business has increased. "There are a lot of investors interested in milk. It can be a profitable business and it is a business I really believe in," said Helenius.
Sugar, coffee firm, buoyed by euro deal
LONDON, Oct 28 (Reuters) - ICE sugar, coffee and cocoa futures firmed in early trade, with investors remaining buoyant due to a deal struck by euro zone leaders earlier this week to help end the bloc's debt crisis.
Raw sugar futures edged up on light technical buying, with scope for upside limited by a firmer dollar.
Ruined roads after storms put CentAm coffee at risk
EL PARAISO, Honduras, Oct 27 (Reuters) - After weeks of torrential rains, tractors, trucks and bulldozers are working overtime in El Paraiso in southern Honduras, scrambling to repair washed-out bridges and collapsed roads before the harvest begins in Central America's No. 1 coffee producer.
If they fail, up to 20 percent of the country's crop could be at risk, says the congressional coffee commission.
Russia govt mulls keeping sugar import duty high
MOSCOW, Oct 27 (Reuters) - Russia, which expects a record output of sugar from domestic beets, is considering a proposal to keep its import tariffs on raw sugar high to prevent unnecessary imports, a senior government official said on Thursday.
"There is a proposal not to lower the tariff next summer," Deputy Economy Minister Andrei Slepnyov said.
Promising biodiesel crop needs time to prove itself
LONDON, Oct 27 (Reuters) - Several new companies are betting on the little-known pongamia pinnata tree as a biodiesel feedstock that does not hurt food production, but a decade or more of research and development is still needed to determine its value as a commercial crop.
Pongamia pinnata, also known as millettia pinnata, is native to Australia, India and parts of southeast Asia. Its oil has so far been used in medicines, lubricants and oil lamps.
Crude Oil Heads for Biggest Monthly Increase Since May 2009 in New York(Source: Bloomberg)
Oil in New York headed for the biggest monthly gain in more than two years amid Europe’s efforts to contain its sovereign-debt crisis. Brent crude’s premium to New York futures traded near a four-month low. Futures were little changed after rising as much as 0.5 percent. Prices have surged 18 percent in October, the biggest increase since May 2009. European Central Bank President Jean- Claude Trichet called for “swift implementation” of an agreement last week on measures to stem the region’s debt crisis, Germany’s Bild Zeitung reported. Crude for December delivery was at $93.11 a barrel, down 21 cents, in electronic trading on the New York Mercantile Exchange at 8:11 a.m. Singapore time. Prices dropped 0.7 percent to $93.32 a barrel on Oct. 28, paring the biggest weekly increase since February.
COLUMN-Is Asia heading down the wrong energy path?: Clyde Russell
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
SINGAPORE, Oct 27 (Reuters) - "Securing energy supplies" is a catchphrase that's become incredibly overused in Asia in recent years as virtually every country in the world's fastest-growing region competes to fuel economic expansion.
It's a theme sure to re-emerge at the Singapore International Energy Week, a top-level gathering in the city state from Oct. 31 to Nov. 4 that will address not only supplies, but also efficiencies and abating carbon pollution.
Euro Coal-prices rise on European debt relief
LONDON, Oct 27 (Reuters) - European prompt physical coal prices rose on Thursday as markets reacted with relief to the European Union's agreement to tackle the euro zone's sovereign debt crisis.
Physical demand remained thin because some players with long positions lack the capacity to burn coal and as many utilities are burning down their stockpiles before ordering new deliveries, traders said.
China Coal-Prices climb, but appetite for imports anemic
SHANGHAI, Oct 27 (Reuters) - China's thermal coal prices climbed for a seventh week to more than 850 yuan ($133.80) a tonne as a cold snap in parts of the country aided demand, but traders said appetite for imports was anemic with most power plants in the southern coasts well stocked.
Most power plants have fairly full inventories with close to three weeks worth of consumption, while some Chinese buyers said they were also unwilling to bet that prices would march significantly higher in the coming winter months due to the murky economic outlook.
Bangladesh crude oil import seen up in 2012 -BPC official
DHAKA, Oct 28 (Reuters) - Bangladesh's crude oil import will rise by 17 percent to 1.4 million tonnes in 2012, with spending likely to go up by 18 percent to $1.3 billion, a senior Bangladesh Petroleum Corporation (BPC) official said on Friday.
Of the total, 700,000 tonnes of Murban crude will be imported from Abu Dhabi National oil Company and another 700,000 tonnes of Arab Light crude will be sourced from Saudi Aramco, the official told Reuters.
PetroChina runs at full pace, boosts imports amid diesel shortage
BEIJING, Oct 28 (Reuters) - PetroChina Co Ltd , China's second-largest refiner, has asked its refineries to run at full rates to boost fuel production and has raised diesel imports since July to overcome domestic diesel shortages.
PetroChina has imported 280,000 tonnes of diesel since July, 122 percent more than its whole diesel imports in 2010. Diesel imports so far in October stood at 120,000 tonnes, according to a report posted on the website of its parent company, China National Petroleum Corp (www.cnpc.com.cn).
Petronas: policy to award licences to oil/gas firms stands
KUALA LUMPUR, Oct 28 (Reuters) - Malaysia's state oil firm Petronas said on Friday it has not changed its policy of awarding licences to companies involved in its oil and gas production areas.
Petronas denied a local media report that said it would abolish its licensing system as part of a move to encourage greater competition in the oil and gas industry.
Tin Producers in Indonesia to Extend Export Ban to Yearend to Boost Prices(Source: Bloomberg)
Fifteen tin producers in Indonesia, the world’s largest shipper, agreed to extend a self-imposed ban on exports until the end of the year to help boost prices. They will seek to widen support for the halt at a meeting this week. The companies took the decision at a meeting in Pangkalpinang, Bangka Belitung province on Oct. 28, said Johan Murod, director at PT Bangka Belitung Timah Sejahtera, a group of six smelters. The producers are seeking to hold a bigger gathering involving all miners on Nov. 2, said Rudy Irawan, deputy chairman of the Indonesian Tin Industry Association. Indonesian companies suspended exports from Oct. 1 after the metal lost 17 percent in September on concern Europe’s debt crisis may derail the global economy. Producers have said that shipments won’t resume until prices rebound to $25,000 per metric ton, from $22,100 on Oct. 28. The country represents more than 40 percent of global exports, according to Peter Kettle, research manager at St. Albans, England-based ITRI Ltd.
Iron Ore-Spot price on course for worst week ever
SINGAPORE, Oct 28 (Reuters) - Spot iron ore prices are headed for their worst week ever as miners continued to ship cargoes even as demand from top consumer China remained slack.
But stabilising prices of forward swaps and growing inquiries from Chinese steel mills suggest the freefall in iron ore -- which has lost 34 percent of its value since early September -- may soon hit a bottom.
Iron ore extends losses as China demand slows
SINGAPORE, Oct 26 (Reuters) - Iron ore extended losses on Wednesday and was on course for its steepest ever weekly price slide as slowing growth in top consumer China curbed steel prices and hit demand for the steel-making raw material.
China's appetite for iron ore has weakened along with slowing demand for steel from its construction sector, pushing down prices for iron ore by about 30 percent since early September.
China imported iron ore stocks rise in wk ending Oct 28
BEIJING, Oct 28 (Reuters) - Inventories of imported iron ore at major Chinese ports ended this week at 92.74 million tonnes, up 520,000 tonnes from the end of last week, figures from industry consultancy Mysteel showed on Friday.
Stockpiles of ore from all three major exporting nations, Australia, Brazil and India, inched up over the week, with shipments still arriving despite a collapse in prices.
Vale keeping iron output strong despite price drop
RIO DE JANEIRO, Oct 27 (Reuters) - Brazilian mining giant Vale joined its rivals in pledging on Thursday no let up in iron ore production, even as prices slump, European buyers cancel cargoes and Chinese steelmakers clamor for price relief.
Signaling a firm belief that the nearly 30 percent slump in spot market prices this month is a temporary blip, executives of the world's biggest iron ore producer said Chinese monetary policy easing should help bolster demand from its top consumer.
China spot nickel demand falls as steel mills slow buying
HONG KONG, Oct 27 (Reuters) - China's demand for refined nickel is weakening as stainless steel mills, its top end-users, cut purchases of spot metal, driving up stocks and squeezing prices, traders said on Thursday.
Stainless steel mills' purchases of spot refined nickel to replace nickel pig iron (NPI), a low grade ferro-nickel with high iron content, have been falling this month, after a rise in August and September, when NPI prices were steady, traders said.
Copper Traders See End to Record Rally as China Demand Slows: Commodities(Source: Bloomberg)
Copper traders and analysts are forecasting an end to the biggest weekly rally since at least 1986 on concern demand will slow in China while Europe’s lingering financial crisis limits growth. Eleven of 23 people surveyed by Bloomberg say copper will drop next week, eight predicted a gain, and four said prices will be little changed. The last time respondents were mostly bearish, on Sept. 23, the metal slumped 4.6 percent in the following week. Traders also predicted lower sugar prices next week, and gains in gold, corn and soybeans.
While copper surged 14 percent this week as European leaders agreed to expand the region’s bailout fund, the metal is down 20 percent from a record on Feb. 15, the common definition of a bear market. Global output exceeded demand in the eight months through August, the World Bureau of Metal Statistics said on Oct. 19. Goldman Sachs Group Inc. and UBS AG cut their copper forecasts for 2012 this month, and economists surveyed by Bloomberg predict slower growth next year in Europe and China, the world’s largest metal user.
Gold Declines From Five-Week High in N.Y. Amid Renewed Europe Debt Concern(Source: Bloomberg)
Gold declined from a five-week high on renewed concerns that Europe’s debt crisis will hamper global growth, damping prospects for commodity demand. Italy’s borrowing costs rose to a euro-era record at a sale of three-year bonds. The Standard & Poor’s GSCI Index of 24 raw materials slumped as much as 1.3 percent. A rebound in the dollar also reduced demand for gold as an alternative asset. “Fresh fears about Italy are pushing all commodities, including gold, lower,” Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said in a telephone interview. “We are also witnessing some profit taking.”
Baltic index falls, rising congestion eyed
LONDON, Oct 26 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, turned negative on Wednesday although cargo bookings to China and growing port congestion were supporting the larger capesizes.
Brokers said they were watching iron ore price developments, which remained a major market factor.
Dry ship deliveries to reach highest ever in 2011
LONDON, Oct 26 (Reuters) - Deliveries of new dry bulk ships are on course to reach their highest level ever this year and fleet expansion is expected to remain strong in 2012, ship broker SSY said on Wednesday.
Despite a recent rally on the larger capesize market, brokers and analysts expect vessel supply, which has outpaced commodity demand, to cap dry bulk freight rate gains in coming months with economic uncertainty adding to headwinds.
