Commodities Rise Most in Two Weeks Amid Speculation China May Ease Policy (Source: Bloomberg)
Commodities rose the most in two weeks amid speculation that China may ease monetary policy, boosting prospects for raw-material demand, after its economy expanded at the slowest pace in more than two years. The Standard & Poor’s GSCI Spot Index (SPGSCI) of 24 raw materials climbed 1.2 percent to settle at 659.56 at 3:43 p.m. New York time, the biggest gain since Jan. 3. A gauge of industrial metals rose to an 11-week high, leading the rally. Commodities have advanced 15 percent from a 10-month low on Oct. 4. Copper, crude oil and gold may rally this year as economic growth in China and the U.S. counter the impact of a European recession, Goldman Sachs Group Inc. said last week. “More and more market players believe that China will implement further monetary-easing measures,” Eugen Weinberg, the head of commodity research at Commerzbank AG in Frankfurt, said today in a report. “This is giving considerable buoyancy to metal prices.”
Soybeans, Corn Advance as China May Ease Policy After Slowdown in Growth (Source: Bloomberg)
Soybeans and corn advanced for the first time in a week on speculation that China will ease monetary policy after the economy expanded at its slowest pace in 10 quarters, potentially boosting demand for raw materials. China’s gross domestic product rose 8.9 percent in the fourth quarter from a year earlier, the statistics bureau said today. Analysts surveyed by Bloomberg expected 8.7 percent growth. China may ease lending curbs and increase spending to bolster the world’s second-biggest economy, boosting demand for grains and oilseeds, said Gary Mead, an analyst at VM Group. “This must be a reaction to China’s GDP being about what people thought it would be,” Mead said by phone from London today. “China’s tight monetary policy might be eased and therefore Chinese demand will begin to rise.”
US corn, soy rebound as Argentine drought worsens
SINGAPORE, Jan 17 (Reuters) - U.S. corn and soybeans bounced back, rising around 1 percent from multi-week lows with support from renewed concerns over forecasts of dry weather in Argentina and Brazil in coming days.
"On the fundamental front, we believe there is more upside as we are likely to see some bargain-hunting after last week's selloff," said Lynette Tan, an analyst with Phillip Futures in Singapore.
Drought damages 33 pct of Ukraine winter grain crops
KIEV, Jan 17 (Reuters) - About a third of Ukraine's winter grain crops are in poor condition as of mid-January due to a severe drought that hit the country during sowing, analyst UkrAgroConsult said on Tuesday.
Some 83.3 percent of the sown area had sprouted, the consultancy said in a report. That is down from more than 90 percent at the same date a year earlier.
Little rain this week for parched Argentine corn
BUENOS AIRES, Jan 16 (Reuters) - Argentina's drought will worsen this week, local meteorologists said Monday, dashing hopes that rain in the days ahead might be strong enough to revive parched corn and soy fields.
Weeks of unforgiving Southern Hemisphere summer sun have toasted grains fields in the world's No. 2 corn-exporting country, killing expectations that Argentina might replenish global corn supplies depleted by a lackluster U.S. harvest.
Ukraine grain traders see exports at 2 mln T/mth
KIEV, Jan 16 (Reuters) - Ukraine will export about 2 million tonnes of grain a month for the remainder of the current marketing season, local traders' union UZA said on Monday.
"This means (exports of) 20-21 million tonnes for the whole season," UZA head Volodymyr Klymenko told a news conference.
Black Sea July-Dec grain exports at 30.7 mln T
KIEV, Jan 16 (Reuters) - Leading grain producers of the Black Sea region - Russia, Ukraine and Kazakhstan - exported 30.7 million tonnes of grain in the first half of the 2011/12 season and could export 28.5 million more by the end, an industry analyst said on Monday.
Kiev-based ProAgro consultancy said in a report that the three top grain producers in the region had an exportable surplus of about 67 million tonnes this season.
Asian hunger for U.S. "noodle" wheat may bolster prices
SINGAPORE, Jan 17 (Reuters) - For the second straight year, Asia must rely on the United States and Canada for most of its top-quality wheat, as rains have cut the protein content in grain from traditional supplier Australia.
Asian nations are among the world's biggest buyers of the superior quality, protein-rich wheat that is used to make noodles, a staple food across the region. This hunger could support prices on the Minneapolis Grain Exchange , and widen spreads with the lower-grade soft wheat traded in Chicago.
Barry CEO sees better demand, stable cocoa prices
ZURICH, Jan 17 (Reuters) - Demand for chocolate is improving by the month, even in the more difficult markets of Southern Europe, the chief executive of chocolate-maker Barry Callebaut said in an interview on Tuesday.
The chocolate industry is grappling with slowing consumer demand as consumers in debt-crisis shaken Europe and in North America tighten their belts.
ICE sugar, coffee edge up on softer dollar
LONDON, Jan 17 (Reuters) - Raw sugar and arabica coffee futures on ICE were slightly higher in early trade, boosted by a weaker dollar and increased risk appetite following better-than-expected Chinese economic growth data. Raw sugar futures rose in early trade to the highest level in nearly two weeks.
Indonesia coffee exports up 14 pct in 2012 -industry
JAKARTA, Jan 17 (Reuters) - Coffee exports from Indonesia, the world's third largest producer, will climb 14.3 percent to 400,000 tonnes this year, the Indonesia Coffee Exporters and Industries Association (AEKI) said on Tuesday.
"It is difficult to predict our coffee exports in 2012 because weather conditions now have a big impact on the coffee harvest and output," said Suyanto Husein, AEKI chairman. "We expect we could export 400,000 tonnes of coffee in 2012."
Cameroon cocoa exports at end-Dec down 11 pct yr/yr
YAOUNDE, Jan 17 (Reuters) - Cameroon exported 131,989 tonnes of cocoa by the end of December since the season started in August, according to data from the National Cocoa and Coffee Board (NCCB) sent to Reuters on Tuesday.
That is down about 11 percent from the 148,973 tonnes exported by the world's No. 5 cocoa grower during the same period a year earlier, according to the figures.
The central African state exported 32,541 tonnes in December, down from 39,928 tonnes in December 2010, the NCCB said. It revised its November 2011 figure to 34,511 tonnes from 41,410 tonnes.
Colombia 2011 coffee output lowest in over 30 yrs
BOGOTA, Jan 16 (Reuters) - Colombia's coffee output dropped to 7.8 million 60-kg bags in 2011, down 12 percent versus 2010 and the worst year in more than three decades, the growers' federation said on Monday.
The world's top producer of high-quality Arabica beans posted a third consecutive year of lower-than-expected coffee production in 2011 as bad weather, fungus and a tree renovation program keep output below historic averages of 11 million 60-kg bags.
ICO raises estimate for 2011/12 global coffee crop
LONDON, Jan 16 (Reuters) - The International Coffee Organization on Monday raised its estimate of the global coffee crop in 2011/12 to 132.4 million 60 kg bags as Ethiopia overtook Colombia as the world's number three producer.
The crop was revised up from a previous forecast of 128.6 million, largely reflecting an improved outlook in Ethiopia. It remained, however, shy of the prior season's 134.2 million bags.
Strong harmattan winds damage Ivorian cocoa -farmers
ABIDJAN, Jan 16 (Reuters) - Strong harmattan winds and dry weather in most of Ivory Coast's cocoa growing regions, which have hurt development of the main crop, could also harm its mid crop, farmers in the top producing country said on Monday.
Ivorian farmers are currently harvesting the main seasonal cocoa crop, which runs from October to March. Some moisture and spells of sunshine around this period are necessary for a good size and quality of the crop and to ensure a strong start for the mid crop.
Crude Rises a Second Day in New York as Reports Boost Economic Optimism (Source: Bloomberg)
Oil gained a second day as signs of improvement in the U.S. and German economies boosted speculation demand may rise and Iran advised Saudi Arabia to be ``wise'' in its approach to supplying more crude if sanctions are placed on Iranian supplies. Futures rose as much as 0.6 percent after climbing 2 percent yesterday. A U.S. Federal Reserve report showed manufacturing in the New York region expanded at the fastest pace in nine months, while German investor confidence jumped the most on record. Iran’s Foreign Minister called on Saudi Arabia to be “wise and responsible in their approach” after the kingdom said it could make up any loss of output. Citigroup Inc. raised its forecast for Brent to $110 a barrel this year.
Crude for February delivery increased as much as 57 cents to $101.24 a barrel in electronic trading on the New York Mercantile Exchange. It was at $101.27 at 10:58 a.m. Sydney time. The contract yesterday advanced $2.01 to $100.71, the highest since Jan. 11. Floor trading was closed Jan. 16 for the Martin Luther King Jr. holiday and electronic trades were booked with yesterday’s for settlement purposes.
Oil up above $112 on China data, weak dollar
LONDON, Jan 17 (Reuters) - Oil prices rose above $112 supported by a weaker dollar and on expectations of steady demand growth after China, the world's second-largest oil consumer, posted stronger-than-expected economic growth.
"There is general positive market sentiment today - it's not just oil which is up today, it is almost everything," said Carsten Fritsch, an oil analyst at Commerzbank in Frankfurt.
March Pacific crude exports to rise on higher output
SINGAPORE, Jan 17 (Reuters) - Sweet crude and condensate exports from Australia, Papua New Guinea and East Timor are likely
to rise in March from the previous month although a cyclone season in the region may disrupt supply, traders said on Tuesday.
A total of 22-23 cargoes will be available for loading in March, up from the 20 cargoes seen in the previous month as the
production period is longer while a cargo was rolled over, preliminary estimates show.
BALTIC EXCHANGE FALL EXTENDS, MARKET REMAINS DIM
Dec 23 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, slid on Friday to its lowest in about 14 weeks weighed down by low fixing activity in a quiet period.
The index, which gauges the cost of shipping commodities such as iron ore, cement, grain, coal and fertiliser, dipped 49 points or 2.74 percent to 1738 points.
No comments:
Post a Comment