Speculators Lift Bullish Raw-Material Bets to Seven-Week High: Commodities (Source: Bloomberg)
Speculators increased wagers on rising commodity prices to a seven-week high as signs of resilient U.S. growth boosted prospects for demand. Money managers increased combined net-long positions across 18 U.S. futures and options by 5.3 percent to 840,972 contracts in the week ended Nov. 8, Commodity Futures Trading Commission data show. That’s the highest since Sept. 20. The Standard & Poor’s GSCI Index of 24 raw materials has jumped 12 percent since Sept. 30, rebounding from two straight quarters of losses. U.S. consumer confidence topped forecasts this month, data showed on Nov. 11. Reports this week may signal retail sales rose in October and manufacturing accelerated. The Standard & Poor’s 500 Index gained in five of the past six weeks. The outlook for commodity demand has recovered since September, when the GSCI tumbled 12 percent, the biggest monthly drop since November 2008, on concern that Europe’s debt crisis would send the global economy into another recession.
Goldman Lowers 12-Month Forecast for Commodity Gains to 15%, Led by Metals (Source: Bloomberg)
Goldman Sachs Group Inc. lowered its forecast for commodity gains in the next year to 15 percent after correctly predicting the climb in prices since the beginning of last month. The S&P GSCI Enhanced Commodity Index will be led by gains in industrial metals in the next year, Jeffrey Currie, a Goldman analyst in London, wrote in a report today. The bank, which lowered its commodities forecast from 20 percent last month, says copper will gain 22 percent and London oil 10 percent. Goldman correctly advised investors to sell oil and copper in April and turned more bullish the following month before prices rebounded. It lowered its commodities outlook after the GSCI Enhanced gauge jumped 15 percent since Oct. 4. Raw materials have gained as European leaders attempted to contain the region’s debt crisis and the Federal Reserve signaled more stimulus may be available to spur growth.
Farmers Less Productive, Competitive If EU Plan Goes Ahead - Lobby (Source: CME)
European farmers will be less productive and competitive due to increased costs related to the Common Agricultural Policy if new European Commission proposals go ahead, farming lobby group Copa-Cogeca said. Copa President Gerd Sonnleitner said the proposals, which were discussed in Brussels, will simply increase red tape for farmers and national authorities. The European Commission last month presented plans to limit payments to big farms and set aside more land, as part of changes to its $75 billion-a-year farm subsidy program. The aid makes up two-fifths of the European Union's annual budget and is hotly debated when the EU writes its budget every seven years. Sonnleitner said the obligation to set aside at least 7% of arable land to "ecological focus areas," such as forests or buffer strips, will increase farmer's costs further and makes no sense in the wake of growing world food demand.
"Proposals to cap or put an upper ceiling on direct payments received by bigger individual farmers also penalizes competitivity," he said. However, the EU has come under criticism over the large amount of subsidies allocated to corporate mega-farms. Currently, a quarter of the largest farms receive 74% of the money. Officials now face more than a year of wrangling to shape the final proposals into reforms that will be implemented after 2013, with the Commission's new proposal forming the basis for discussions. Cogeca President Paolo Bruni said the CAP must focus on improving the economic performance of farming families and agri-cooperatives to enable them to get a better return from the market. "What is needed is a CAP which ensures a dynamic, innovative, competitive and more profitable EU agriculture and agri-food sector," he said.
Canadian Farmland Value Rising At Accelerated Pace (Source: CME)
Canadian farmland gained in value at an accelerated pace this year as crop prices rose and interest rates fell. According to Farm Credit Canada, farmland values rose by 7.4% in the first six months of 2011, the fastest rate since 2008 and more than triple the pace seen in the first half of 2010, when farmland rose by 2.1%. Values rose by 3.0% in the last half of 2010. The increase was led by Saskatchewan, where farmland rose by an average of 11.6% in the first half of this year. FCC noted that land values in Saskatchewan had lagged other provinces until recently. As well, ongoing strength in commodity prices has added support. The average national price of farmland has increased by about 8% annually since the commodity prices began to rise in 2006. The last time the average value decreased was in 2000, when it dropped by 0.6%
Corn (Source: CME)
US corn futures end lower, with the December contract hitting a 1-month low amid weak export demand and outside pressures. Worries about Italy's debt, reflected in weaker equities and a stronger dollar, weighed on commodities generally while lackluster export demand added to corn's weakness. But losses were limited by domestic cash prices, which have been strong, with basis at record levels in some areas, the University of Illinois reports. December CBOT corn ends down 5c at $6.33 1/2 per bushel.
Wheat (Source: CME)
U.S. wheat futures end lower on outside market pressure and weak export demand. Worries about Europe's debt crisis, which has spread to Italy, weighed on commodities including corn, as equities fell and the dollar climbed. Meanwhile wheat is being pressured by poor export demand and talk of U.S. imports, which traders say is a sign prices are too high. But near-term U.S. cash prices have remained relatively firm, and nearby Dec. CBOT wheat gained several cents versus deferred contracts. Dec. CBOT wheat ends down 1c to $6.15 3/4, while KCBT Dec. wheat ends down 12c to $6.92. MGEX Dec. wheat ends down 6 3/4c to $9.27 1/2.
Rice (Source: CME)
U.S. rice futures halt their free-fall, ending mixed after falling more than $2 in recent weeks. Poor export demand has pressured prices, outweighing worries about Asian crops damaged by floods. Jan. CBOT rice ends flat at $15.22 per hundredweight.
Soy rises for 2nd day, wheat rebounds on euro zone hopes
SINGAPORE, Nov 14 (Reuters) - U.S. soy rose for a second straight session, while wheat recovered from a one-month low on hopes that new leaders in Italy and Greece will take steps to rescue their nations from bankruptcy.
"It is the macro economic sentiment which is supporting grains and soybeans," said Ker Chung Yang, an analyst at Phillip Futures in Singapore. "Prices are getting attractive for buyers like China to stock up. Lunar new year is just two months away and they have to buy now."
Australia wheat crop faces quality risks -Cargill
SYDNEY, Nov 14 (Reuters) - Australia's 2011/12 wheat harvest, now gathering pace, runs the risk of quality downgrades following wet weather although overall quality is expected to be an improvement on last year, according to Cargill Inc's Australian grain marketing chief.
"We've still got a fair way to go so at this stage there doesn't seem to be too many problems in eastern Australia although in Western Australia there's been a few issues," Mitch Morison, commercial general manager of Cargill's Australian grain trading arm, said in a telephone interview.
Cargill boosts Australia capacity ahead of harvest
SYDNEY, Nov 14 (Reuters) - Cargill Inc is boosting its grain handling capacity in Australia ahead of an expected bumper harvest in the country, the world's third-biggest wheat exporter, the U.S. head-quartered commodities giant said on Monday.
Cargill, one of Australia's largest wheat exporters following its recent purchase of the grain trading arm of AWB Ltd, said it would spend more than A$10 million ($10.3 million) on its "Grainflow" receival sites in eastern and southern Australia.
Cuba seeks Brazil aid to boost farm production
SAO PAULO, Nov 11 (Reuters) - Cuba is seeking a credit of $200 million from Brazil to import agricultural machinery and technology in hopes of increasing food output and reducing its reliance on imports, a Brazilian official said on Friday.
The communist island thinks the aid will allow it to double its production of grains, which would enable it to meet its domestic demand, said Francesco Pierri, chief international advisor in Brazil's Ministry of Agrarian Development.
Informa ups US 2012 corn seeding forecast, cuts soy
CHICAGO, Nov 11 (Reuters) - Analytical firm Informa Economics raised its forecast of U.S. 2012 corn plantings to 94.0 million acres from its previous forecast last month of 93.1 million, trade sources said Friday.
Informa trimmed its forecast of U.S. 2012 soybean seedings to 76.1 million acres from its previous projection of 77.0 million.
Rains early next week to slow final U.S. harvest
CHICAGO, Nov 11 (Reuters) - Rainfall early next week will slow the final harvest of U.S. corn and soybeans while the Plains wheat crop enters winter dormancy in better shape due to recent rains, an agricultural meteorologist said on Friday.
"Showers will expand from the far southeastern Plains into the Delta and Ohio Valley from Sunday into Tuesday and again at the middle of the six- to 10-day and 11- to 15-day periods," said Joel Widenor, meteorologist for Commodity Weather Group.
Ukraine exports 363,000 T maize Nov 1-9
KIEV, Nov 11 (Reuters) - Ukraine exported 363,000 tonnes of maize in Nov. 1-9, mostly to Egypt, analyst ProAgro said on Friday.
The consultancy said Ukraine exported 157,300 tonnes of maize to Egypt, 76,600 to Algeria, 61,000 to Syria. It also sent maize to Spain and Jordan.
Plentiful Grains Supply To Weigh On Prices Into Early 2012 (Source: CME)
Global grains prices are likely to face further downward pressure in the coming months as many producers are harvesting record crops, giving importers enough origins to choose from. The strong recovery in production has been a response to prices that hit 30-month highs around February, encouraging farmers to increase acreage. "Grains production has turned out to be much better than we thought earlier this season. Farmers wouldn't have produced the large volumes if prices weren't attractive," said Abdolreza Abbassian, secretary of the Intergovernmental Group for Grains under the United Nations' Food and Agriculture Organization. FAO's Food Price Index hit an 11-month low in October with the organization now estimating 2011 global cereals output at a record 2.325 billion tons. Abbassian said Russia, China, Ukraine and South America have produced more grains in response to higher prices.
Global wheat prices will remain depressed due to the large crops in Australia and the Black Sea region and prices are likely to move in the $6.00/bushel-$6.50/bushel range, said Karl Setzer an Iowa-based analyst with MaxYield Cooperative. Many traditional buyers of U.S. corn are buying feed grade wheat from Australia and the Black Sea region, said Setzer. Due to high prices, Ukraine is growing corn like never before, not only switching from other crops but also bringing in additional land, Abbassian said. The International Grains Council expects Ukraine's corn production in the crop year started July 1 to rise 57% to 18 million tons. Abbassian said it may even touch 20 million tons. "Farmers have responded to high prices and they will do the same next year, so we could be looking at a more bearish picture in the second half of 2012 when the next crop arrives," Senior Agriculture Economist at Kansas State University, Jay O' Neil, said.
It is an excellent situation to stay in business because even though grains prices have declined from their peaks, they are still remunerative and higher than last year, said Abbassian. The impact of a record Brazilian soybean crop is continuing to be felt in the international market, said Victor Thianpiriya, a Melbourne-based agricultural analyst with ANZ Banking Group.
New Zealand: Put Rice In Talks (Source: CME)
Japan must put its main staple, rice, on the table if it wishes to join talks over the Trans-Pacific Partnership free-trade agreement, New Zealand Trade Minister Tim Groser said. "The negotiation must include rice," he said in an interview on Sunday, if the TPP is to set a comprehensive market-opening example for the rest of the region. Mr. Groser was speaking on the sidelines of the Asia-Pacific Economic Cooperation summit in Hawaii after a disagreement over TPP talks arose between Tokyo and Washington. Japan objected to a White House news release's assertion that Prime Minister Yoshihiko Noda had committed to "put all goods, as well as services, on the negotiating table for trade liberalization." Japan said this overstated the commitment made by Mr. Noda, whose decision Friday to participate in TPP negotiations was expected to expose him to a political backlash when he returned to Japan.
Rice is one of the few crops in which Japan is self-sufficient, and opponents of the TPP argue it would destroy the country's agricultural sector and reduce food self-sufficiency to 13% from the current 39%. Emphasizing that the TPP is seeking a "comprehensive" market opening, without exceptions, Mr. Groser said he supports the White House statement -- though he added that other countries recognize the agricultural sector, especially rice, is sensitive for Japan. For such sensitive items, he said, rapid liberalization is impossible. "It's a question of gradual, progressive liberalization over a period of many years," Mr. Groser said. "A period of 10 years is not out of the question." The vigorous debate in Japan over participation in the TPP is encouraging, Mr. Groser said: "I am optimistic that we will find a way in which the Japanese government in the future will be able to confirm a formal decision to start formal negotiations. Politically, I am extremely optimistic."
The nine TPP member countries agreed Saturday on the broad outline of a market-opening framework. U.S. President Barack Obama said that the TPP is aimed at establishing "a comprehensive, next-generation regional agreement that liberalizes trade and investment, and addresses new and traditional trade issues and 21st-century challenges." Success with the TPP, Mr. Groser said, requires finding a balance: Upholding high standards of market opening while still attracting other Asia-Pacific countries to become members. "You don't want to establish a model inside the TPP that is so ridiculously difficult that the rest of the world says: 'We can't join this. This is too difficult,'" he said. At the same time, the group wants to avoid sending a false signal to prospective TPP participants that "we are prepared to dumb this agreement down just to get wider participation," he said.
Global Food Crops Need Urgent Protection From Climate Change - FAO (Source: CME)
Traditional food crops across the globe are in urgent need of protection from climate change and other environmental stresses, the United Nations' food body said, adding that countries need to conserve plant varieties for generations to come. "The conservation and sustainable use of plant genetic resources for food and agriculture are key to ensuring that the world will produce enough food to feed its growing population," said the Food and Agriculture Organization Director-General Jacques Diouf. Diouf added that the FAO's gene pool of more than 1.5 million samples of plant genetic material "is possibly our most important tool for adapting agriculture to climate change in the years to come." The International Treaty on Plant Genetic Resources for Food and Agriculture is supporting farmers and breeders in 21 developing countries adapt key crops to new conditions brought on by climate change, floods, droughts, pests and diseases.
"The effects of climate change on agriculture do not respect national borders, they cover entire agro-ecological zones," said Shakeel Bhatti, Secretary of the International Treaty. "For this reason, this portfolio of projects is taking a pioneering approach in generating a global knowledge base. Some of these projects will help us to establish clear priorities and action plans across borders for future actions," he added. Diouf welcomed the $6 million project and called on countries to develop specific policies to make wider use of plant varieties.
Wheat Shippers Battle for Sales as Global Grain Glut Expands: Commodities (Source: Bloomberg)
France may lose its place as the second-biggest wheat exporter after failing to win more than a dozen tenders in Egypt, the world’s biggest buyer, as shipments from Russia, Ukraine and Kazakhstan overwhelm markets. Egypt favored cheaper supply from the Black Sea region in the past 17 tenders and cargoes to northern Africa from France’s Rouen, Europe’s biggest grain-export hub, fell to a four-month low in the week ended Nov. 2, port data show. France’s crop office expects a 23 percent drop in shipments in the 12 months ending in June, the most in at least a decade.
That’s reversing last season’s trend, when French cargoes jumped 16 percent to a record as Russia and Ukraine cut sales to ensure domestic supply. Prices that reached a three-year high in February are plunging after both countries eased restrictions. Output is also expanding elsewhere and the United Nations expects the biggest-ever global harvest. Wheat may drop another 20 percent in Paris by May, said Greg Grow, director of agribusiness at Archer Financial Services Inc. in Chicago.
Archer Daniels Midland Plans Biodiesel Plant In Alberta, Canada (Source: CME)
Archer Daniels Midland Co. said it plans to build a 70-million gallon biodiesel plant in Lloydminster, in Alberta, Canada, increasing the grain processor's North American biodiesel production capacity by 50%. The new plant will be located adjacent to the company's existing canola-crushing facility, which the company is also expanding. The biodiesel plant also will be used to fulfill renewable diesel requirements in Canada, which mandates that all diesel fuel and heating oil sold in the country must contain at least 2% biodiesel. Construction is expected to start in the spring of 2012, with completion slated for the end of 2013. Company Vice President Mike Livergood said the new facility will help support canola-crush margins and capacity utilization.
The Decatur, Ill., company is one of the world's largest grain traders and processors. Earlier this month, Archer Daniels Midland said its fiscal first-quarter earnings rose on strong grain exports from the Black Sea region, even as high corn prices limited profits in its sweetener business. Shares were trading up 6 cents at $29.75. The stock is down 1.1% year to date.
India cautious as its mills seek big sugar exports
MUMBAI/LONDON, Nov 4 (Reuters) - Sugar market heavyweight India is likely to delay half of this year's expected one million tonnes of unrestricted exports until early 2012 due to output delays, a decision that would protect Indian consumers and limit the country's impact on world prices.
India, the world's top sugar consumer and biggest producer after Brazil, can cause big gyrations in international sugar futures prices because of its clout as either an exporter or an importer, depending on the progress of its crop.
India's Oct oilmeal exports down 29 pct y/y
NEW DELHI, Nov 4 (Reuters) - India's oilmeal exports fell 29 percent in October, its first fall in a year, a leading trade body said on Friday, on lower local supplies of soybean and a temporary fall in demand from its traditional buyers in Southeast Asia.
Oilmeal sale from India, Asia's top supplier of the animal feedstocks, was at 353,300 tonnes in October as against 498,159 tonnes a year earlier.
Cane pricing dispute may delay India sugar exports
MUMBAI, Nov 3 (Reuters) - A second tranche of sugar exports from India could be delayed because of a dispute over cane pricing that is preventing the government from getting clarity on final production figures needed to decide how much overseas sales to allow.
The dispute may not affect a first decision on exports that is likely next week given high inventory and an ample summer-sown crop, but further sales will depend on how fast farmers and millers agree on cane prices and high food inflation easing.
ICE markets firmer as euro stress pauses
LONDON, Nov 14 (Reuters) - ICE cocoa, sugar and coffee futures rose in sympathy with financial markets in early trading as investors greeted the appointments of technocatic leaders in euro zone debt hot spots Italy and Greece with cautious optimism.
ICE March cocoa was up $23 or 0.9 percent at $2,582 a tonne at 0938 GMT, just above last week's 2-1/2-year trough. The contract had dipped to $2,544 on Friday, the lowest level for the second month since July 2009. Ample supplies from West Africa limited upside price potential.
China 2011 cotton output seen up 21 pct at 7.55 mln T -think tank
BEIJING, Nov 14 (Reuters) - China's cotton output in 2011 is expected to increase 21 percent from a year earlier to 7.55 million tonnes, a government think tank said on Monday.
The estimate by the information center under the China National Cotton Reserves Corp, given in a report published on www.cncotton.cn, is both higher than an earlier government estimate of 7.2 million tonnes and an industry survey of 7.4 million tonnes.
Brazil's coffee consumption seen overtaking US
PLAYA HERRADURA, Costa Rica , Nov 11 (Reuters) - Brazil could overtake the United States in overall coffee consumption in the next few years as increasing wealth in Brazil is driving a rise in locals' thirst for espressos and cappuccinos, according to the country's coffee association head.
Brazil, the world's top coffee grower, could consume more coffee than the United States in "two to three years," Nathan Herszkowicz, executive director of Brazil's coffee industry association Abic told Reuters on Thursday.
Europe coffee buyers upset at Liffe delivery delays
LONDON, Nov 11 (Reuters) - Coffee trade houses and roasters in Europe are fuming over delays of several months in getting supplies out of warehouses in Antwerp and say the Liffe exchange is failing to meet its mandate as supplier of last resort.
Some two thirds of global stocks of robusta coffee certified by NYSE Liffe are concentrated in a few warehouses in Antwerp, creating a bottleneck that is forcing some coffee firms to wait until January to get deliveries.
Bumper Brazil crop to ease arabica price -analyst
PLAYA HERRADURA, Costa Rica, Nov 12 (Reuters) - Brazil could produce up to 59 million 60-kg (132-pound) bags of coffee in the 2012 harvest, helping ease the international price of arabicas from multi-year highs, a global commodities analyst said on Saturday.
The estimate would be a nearly 40 percent increase from the 43.15 million bags Brazil produced last year, as the world's top coffee producer enters an up year in its up-and-down harvest cycle.
Colombia coffee output falls for 7th straight month
PITALITO, Colombia, Nov 11 (Reuters) - Colombia's coffee output fell for the seventh straight month in October, dropping 19 percent due to heavy rains and the roya fungus, the growers federation said on Friday.
The world's top producer of high-quality Arabica beans has seen output drop since 2009 and struggled to regain historical production levels because of bad weather and a renovation program to replace aging trees.
Coal India Q2 net lower than forecast
Nov 13 (Reuters) - State-run Coal India , the world's largest coal miner, posted a lower-than-expected quarterly net profit of 25.93 billion rupees ($517.3 million) as a price increase in February failed to boost profitability despite higher-than-expected sales.
Coal India, which produces nearly 80 percent of the coal in India, has been unable to meet growing power demand in Asia's third-largest economy from power and steel projects.
Colombia coal output soars 27.8 pct in Q3-regulator
BOGOTA, Nov 11 (Reuters) - Coal production in Colombia, the world's No. 4 coal exporter, jumped in the third quarter to 23 million tonnes, up nearly 28 percent from the same period last year, the country's mining regulator said on Friday.
Colombia's coal industry is dominated by big thermal producers with their own port and rail facilities such as Glencore, Drummond and Cerrejon, which is owned equally by BHP Billiton , Anglo American and Xstrata .
Euro Coal-Prices rise 50 c/T with oil, euro gains
LONDON, Nov 11 (Reuters) - Prompt physical coal prices moved higher by a marginal 50 cents a tonne on Friday although few trades were reported, in line with gains in oil and the euro after Italy's Senate approved economic reforms aimed at restoring investor confidence .
"Generally it is looking more bearish, very little happening in Europe, India's not buying and Chinese interest is limited," one utility trader said.
Asia Coal-Prices fall as buyers remain aloof
SHANGHAI, Nov 11 (Reuters) - Australia's thermal coal prices, a benchmark for Asia, fell to $116 a tonne on a lack of spot purchases from major buyers in North Asia, while poor interest from China cast a pall on near-term prices.
Thermal coal on the global COAL Newcastle index for the week to date closed at $116 per tonne on Friday, down from $116.95 a week earlier. China's benchmark steam coal prices stayed flat at the second week at 853 yuan ($134.40).
China crude imports may finally head higher: Clyde Russell
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
SINGAPORE, Nov 14 (Reuters) - China's imports of crude oil have defied predictions of an imminent increase for several months, but it finally seems the stars are aligned for a gain in coming months.
Data last week showed October imports at 4.9 million barrels a day, down 1.6 percent from September and the fifth consecutive month below the five million-barrel mark.
Brent climbs over $114 on euro debt progress hopes
LONDON, Nov 14 (Reuters) - Brent crude oil rose above $114 per barrel on hopes new governments in Italy and Greece would prevent their economies from collapsing and help avoid financial meltdown in the euro zone, offering the chance of renewed growth.
"Markets are optimistic that the critical deadlock is over and that something will be done to solve the euro zone debt crisis," said Carsten Fritsch, commodities analyst at Commerzbank in Frankfurt.
Oil Trades Near Two-Day Low on Europe Debt Concern as U.S. Supplies Shrink (Source: Bloomberg)
Oil traded near the lowest level in two days as speculation that Europe will struggle to contain its debt crisis countered signs of declining fuel stockpiles in the U.S., the world’s largest crude consumer. Futures were little changed after falling 0.9 percent yesterday. Italy’s borrowing costs rose to the highest level since June 1997, deepening concern that Europe’s crisis is worsening. U.S. crude and fuel inventories probably shrank for a second week, according to a Bloomberg News survey. Hedge funds boosted bullish bets on Brent oil last week, data from London- based ICE Futures Europe showed. “There is still a lot of uncertainty over Europe,” said Ken Hasegawa, a commodity-derivatives trading manager at Newedge Group in Tokyo, who forecasts futures will trade between $95 and $100 a barrel in the near term. “Last night’s decline was a correction but I think the downside will be limited from a technical point of view.”
Aluminum Production Worldwide May Drop as 15% of Capacity Shut, Rusal Says (Source: Bloomberg)
Aluminum output may drop in the first half of next year as producers increase idled plants to as much as 15 percent of global capacity, said United Co. Rusal, the world’s largest supplier. China, Europe and the U.S. may shut down plants, Rusal First Deputy Chief Executive Officer Vladislav Soloviev told reporters in Moscow. Unless prices rise from current levels, 10 percent to 15 percent of capacity may be shut, Soloviev said after Rusal reported earnings. A 22 percent slump in prices from their 2011 peak of $2,797 a metric ton means 30 percent of producers aren’t profitable, Rusal said yesterday. When demand and prices weakened in 2009, smelters curbed supply by about 5 percent in the first half of the year, according to the International Aluminium Institute. Futures rallied 37 percent the following six months.
Iron Ore-Spot eyeing further gains on fewer cargoes
SINGAPORE, Nov 14 (Reuters) - Iron ore may stretch its winning streak to a third week, supported by Chinese buying interest and tight supply in the spot market as traders withhold some cargoes, waiting for prices to rise further.
The steelmaking raw material has gained nearly 18 percent in the past 10 trading days as steel mills in China, the world's biggest iron ore buyer, replenished inventories after prices fell more than 30 percent in October.
China imported iron ore stocks up 1.5 pct in week ending Nov 11
SHANGHAI, Nov 11 (Reuters) - Inventories of imported iron ore at major Chinese ports rose 1.5 percent this week to end at 96.3 million tonnes, up for the fourth consecutive week, data from industry consultancy Mysteel showed on Friday.
Shipments from India, which has imposed a ban on large-scale mining and exports from the world's third-largest iron ore producer, fell around 2 percent from last week, as the higher freight rates and export duties also discouraged exports.
Baltic index falls, ship supply pressure weighs
LONDON, Nov 11 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, turned negative on Friday with a growing surplus of available vessels hitting sentiment.
The overall index fell 5 points or 0.27 percent to 1,835 points having risen for two sessions previously. Prior to the move higher on Wednesday, it had fallen for ten consecutive sessions and dropped to its lowest in two months earlier this week.
Shipping slump to deepen in 2012 -Citi
LONDON, Nov 11 (Reuters) - Prospects for dry shipping are set to remain poor for two to three years as the sector struggles with a glut of vessels, while crude tankers face more pain in 2012 as economic problems add to supply pressures, Citigroup's shipping chief said.
China's transportation minister said last week the global shipping sector was in a downturn even worse than during the 2008 financial crisis, with the outlook for the industry made increasingly uncertain by euro zone debt turmoil.
