Riskier assets retreated broadly as hopes for fresh measures to tackle the euro zone debt crisis faded and caution set in ahead of a meeting of European leaders, with renewed fears that Greece would leave the bloc dampening investor sentiment. U.S. stocks closed mostly flat after volatilility late in the session, with weakness in materials and energy shares offsetting strength in financials.
The euro edged ever closer to hitting a 21-month low while the safe haven dollar reached a 20-month peak against a basket of currencies on fears of a messy Greek exit from the euro zone.
FOREX-Dollar hits 20-mth high, Greece exit fears dent euro
SINGAPORE, May 23 (Reuters) - The safe haven dollar climbed to a 20-month high against a basket of currencies on Wednesday as fears of a messy Greek exit from the euro zone weighed on the euro and kept the single currency pinned near a recent four-month low.
"The (Papademos) comments were like very strong poison, and the market got flung around by them," said Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui Banking Corporation in Singapore.
Chicago soy lost more ground sliding to its lowest since March 30, while wheat dropped for a second straight session on forecasts of rain in parts of Russian and U.S. grain producing regions.
US corn, soy farmers plant in record time
U.S. farmers planted corn and soybeans in record time last week as they took advantage of the warm, dry weather throughout the U.S. Midwest, Monday's weekly U.S. Agriculture Department planting data showed.
Brazil's coffee crop seen 52.2 mln bags -Reuters poll
World top coffee grower Brazil will produce 52.2 million bags in the 2012/13 crop, a Thomson Reuters survey of participants at a Sao Paulo coffee seminar showed on Tuesday, below most analyst estimates but higher than the government's official estimate.
Rubber industry hopes China demand will offset Europe woes
China's strong appetite for rubber could help the market stave off pressure from a worsening debt crisis in Europe that threatens commodities demand while Thailand's move to prop up prices will aid the tyre industry, industry officials said.
Indonesia group downgrades 2012 rubber output forecast on rains
Rubber output this year in Indonesia, the world's second-biggest producer, is likely to be around 5 percent below a forecast in January to stand flat with 2011 after heavy rains, a senior official at the Indonesian Rubber Association said on Wednesday.
Indonesia may scrap import duties on soybean
Indonesia may scrap its 5 percent tariff on soybean imports as it seeks to combat higher global prices and boost domestic processing, an industry ministry official said on Tuesday.
Brent crude slipped around 0.4 percent as a potential deal between Iran and the U.N. nuclear watchdog eased fears of oil supply disruptions, while concerns over the debt crisis in the euro zone and a slowing Chinese economy weighed on demand.
Europe awash with quality oil as U.S. imports fall
Europe is facing a glut of high quality crude oil grades, only a year after war in Libya created a serious shortage, as the continent's demand falls and the United States cuts imports due to greater availability of domestic supply.
Japan April LNG imports climb over year after Fukushima
Japan, the world's top importer of liquefied natural gas, imported 6.9 million tonnes of LNG in April, up 14.9 p e rcent from the previous year, reflecting a rise in gas-fired power generation after the Fukushima nuclear crisis
Iran's oil exports halt decline in May
Iranian oil exports have not dropped further in May after falling sharply since March, industry sources said on Tuesday, because core customers in Europe and Asia continue to buy ahead of European sanctions aimed at slowing Tehran's nuclear programme.
India, China, Taiwan lead S.Africa Apr coal imports
LONDON, May 21 (Reuters) - Asia absorbed most of South Africa's 5.2 million tonnes of coal exports in April, led by India, China and Taiwan, exporters said.
Almost all of South Africa's thermal coal is exported from the private Richards Bay Coal Terminal (RBCT) in Kwazulu Natal, which is owned by mining majors Anglo Coal, BHP Billiton, Xstrata, Glencore, Exxaro, Total and Optimum Coal Holdings.
Euro Coal-ARA dips $1, China cargoes depress prices
LONDON, May 22 (Reuters) - Prices for European delivered DES ARA thermal coal fell by $1.00 on Tuesday to yet another fresh two-year low with a bid of $78.00 for June as distressed cargoes as a result of Chinese defaults dragged the market lower.
"We've heard of at least 10 cargoes either defaulted on or deferred, of Colombian, South African and Indonesian origin rather than U.S.," one European trader said.
Consumers swoop on Malaysian tin after price plunge
LONDON/HONG KONG, May 22 (Reuters) - Consumers pounced on inventories of tin in Malaysia as prices of the metal plunged this month, making it more attractive to Chinese importers, and as they sought to avert any developing bottlenecks at warehouse gates, trade and industry sources said.
Orders for tin from London Metal Exchange (LME) warehouses in Johor have surged more than five-fold or 4,660 tonnes so far in May, tying up 43 percent of stocks in sheds monitored by the LME, the market of last resort.
Chinese buyers default on coal, iron ore shipments-trade
SHANGHAI/SINGAPORE, May 21 (Reuters) - Chinese buyers are deferring or have defaulted on coal and iron ore deliveries following a drop in prices, traders said, providing more evidence that a slowdown in the world's second-largest economy is hitting its appetite for commodities.
China is the world's biggest consumer of iron ore, coal and other base metals, but recent data has shown the economy cooling more quickly than expected, with industrial output growth slowing sharply in April and fixed asset investment, a key driver of the economy, hitting its lowest in nearly a decade.
Iron Ore-China steel at 6-mth low, demand weak
SHANGHAI, May 23 (Reuters) - Shanghai steel futures fell more than 1 percent to a six-month low on Wednesday, hit by a shaky demand outlook in the world's top steel producer, while risk aversion ahead of a meeting of European leaders to tackle the mounting euro zone debt crisis also kept traders at bay.
Although a state-backed newspaper has said that China would fast track approvals for infrastructure, investors are wondering if that move alone would help counter falling demand from the property slowdown.
Copper retreated from a one-week high hit in the previous session ahead of a meeting of European leaders, with investors wary that a failure to tackle the region's debt crisis will hit global demand for industrial metals just as China is slowing and a U.S. recovery is fragile.
Gold eased extending sharp losses made in the previous session as investors were sceptical that an informal European Union meeting later in the day would yield steps to help solve the region's debt crisis.
METALS-Copper comes off one-week high on Europe caution
SHANGHAI, May 23 (Reuters) - Copper retreated on Wednesday from a one-week high hit in the previous session ahead of a meeting of European leaders, with investors wary that a failure to tackle the region's debt crisis will hit global demand for industrial metals just as China is slowing and a U.S. recovery is fragile.
"There are more reasons to stay wary than to cheer. All signs point to Chinese copper demand being sluggish, with downstream orders still weak. China's economy is slowing, the euro zone crisis remains an issue while a U.S. recovery is still uncertain," said CIFCO analyst Zhou Jie.
PRECIOUS-Gold slumps on scepticism of EU meeting
SINGAPORE, May 23 (Reuters) - Gold eased on Wednesday extending sharp losses made in the previous session as investors were sceptical that an informal European Union meeting later in the day would yield steps to help solve the region's debt crisis.
"Can it solve the debt crisis? No," said Dick Poon, manager of precious metals at Heraeus in Hong Kong, "Everyone is worried about Greece withdrawing from the euro zone and the global economy, and would rather keep cash on hand than buying anything."
Dry bulk shipping rates to rebound in 2013-Global Hunter
May 22 (Reuters) - Daily rates for dry bulk vessels could rebound by the middle of next year due to an easing of oversupply as companies scrap older ships and cut back on new orders, Global Hunter Securities said.
Rates for dry bulk vessels, which transport commodities such as coal, iron ore and grain, crashed in the last four years as the delivery of a large number of new ships coincided with a global economic downturn.
Baltic sea index drops on weak freight demand
May 22 (Reuters) - The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry commodities, fell on Tuesday due to weaker freight demand in both capesize and panamax segments.
The overall index, a gauge of the cost of shipping commodities such as iron ore, cement, grain, coal and fertiliser, fell 14 points or 1.23 percent to 1,127 points.
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