Tuesday, June 26, 2012

20120626 1609 Global Market & Commodities Related News.

Asian shares fell as investors remained sceptical that a summit of European leaders would yield any substantive measures to solve the region's protracted debt crisis, now in its third year. European stock index futures pointed to a slightly higher, but doubts about whether this week's EU summit will lead to significant measures to shore up the region's most indebted countries could limit the rebound. U.S. stocks fell sharply on Monday, putting the S&P 500 near break-even for June so far, as investors saw little reason to be optimistic about a European Union summit this week.

The euro was on the defensive near a two-week low against the dollar on growing worries that an upcoming European summit would produce nothing to solve the region's debt crisis.

FOREX-Euro near 2-week low as EU summit hopes fade
TOKYO, June 26 (Reuters) - The euro was on the defensive near a two-week low against the dollar on Tuesday on growing worries that an upcoming European summit would produce nothing to solve the region's debt crisis.
"Yesterday in Asia, people were saying they would wait for the summit. But it's becoming almost pointless to wait for it," said Daisuke Uno, chief strategist at Sumitomo Mitsui Banking Corp.

U.S. new-crop corn rose more than 2 percent to the highest since early November, building on last session's limit-up gains, while wheat rose to an about nine-month top as a worsening U.S. drought threatens to curb supplies.

USDA slashes corn, soy ratings as heat withers crops
The U.S. Agriculture Department on Monday cut its condition ratings for both corn and soybeans to their lowest late-June levels since 1988, following a week of hot and dry weather in key growing areas.

U.S. crops bake, raising fears of smaller yields
U.S. corn and soybeans are baking as a scorching dome of heat  covers the center of the country, with little relief in sight until the weekend at the earliest, agricultural meteorologists said on Monday.

China's Wen signs accords, eyes Argentina's corn
Chinese Premier Wen Jiabao said China is interested in buying more corn from Argentina, the world's second-biggest supplier after the United States, a senior Argentine Agriculture Ministry official told Reuters on Monday.

Liffe backs planned softs, wheat delivery limits
Major commodity exchange NYSE Liffe  is sticking with a plan to introduce delivery limits on its cocoa, robusta coffee, white sugar and feed wheat contracts although it has added a new exemption, the exchange said in a market notice.

Brent crude held steady near $91 per barrel as short-covering and forecasts of a drop in U.S. crude inventories offset worries that a European summit would be unable to produce a concrete solution to the region's debt crisis.

POLL-US crude stocks seen down on lower imports
U.S. crude oil stockpiles were forecast to have fallen last week due to a drop in imports, a preliminary Reuters poll showed on Monday.

Gulf of Mexico energy ops resume after storm misses
Some of the Gulf of Mexico's biggest oil and gas producers began to restart production and restaff evacuated platforms on Mo nday as Tropical Storm Debby slowly headed for the Florida panhandle, away from energy infrastructure in the basin.

Top Argentine oil field hit by protests
Labor protests are still disrupting operations at Argentina's biggest oil field, Cerro Dragon, after four days, owner Pan American Energy said on Monday.

S.Korea replaces Iran oil with other Middle East sources
South Korea's economy ministry said on Tuesday most of its Iranian oil imports had already been replaced by supplies from other producers such as Iraq, Kuwait, Qatar and the United Arab Emirates, and by spot purchases, although some still needed to be covered.

London copper rose for a second session, supported by promising U.S. housing data that calmed worries about the state of the world's top economy, although thin volumes suggest caution ahead of the European Union Summit later this week.

Gold held steady above $1,580 an ounce after rising in the previous session on growing uncertainty on whether a key European Union summit this week will be able to resolve the region's debt crisis.

Metals sector scrambles for funds as squeeze bites
Europe's producers and users of industrial metals are scrambling to find alternate sources of funding as regional banks, hurt by the debt crisis and tougher global capital rules, become increasingly reluctant to lend.

Sumatra Copper & Gold to sell 20 pct Indonesia stake
JAKARTA, June 26 (Reuters) - Australia's Sumatra Copper & Gold  is to sell a stake of up to 20 percent to meet Indonesian foreign ownership requirements introduced this year, a senior executive said on Tuesday.
Indonesia, the seventh largest gold producer last year, is looking to limit foreign ownership in mines to no more than 49 percent after 10 years of production.

Morgan Stanley seeks 1.9 pct stake in Fortescue - dealers
MELBOURNE, June 26 (Reuters) - Fortescue Metals Group  founder Twiggy Forrest is seeking to buy 60 million shares or 1.9 percent in the iron-ore miner for about A$294 million ($294 million), dealers said adding the book build by Morgan Stanley is yet to be completed.
Morgan Stanley was bidding for 60 million shares at around A$4.90 a share on an all-or-nothing basis, meaning if the full order was not met, no shares would be bought.

Asian gold bugs eye price weakness, c.bank buying
JAKARTA, June 25 (Reuters) - Weak bullion prices and prospects for bargain buying by central banks will take centre stage at a gold industry gathering in Indonesia this week, along with the country's plans for a raft of new mining regulations that could be worrying for investors.
Gold has lost some of its safe-haven appeal in recent weeks, as investors cash in despite market turmoil partly due to the euro zone debt crisis, but there are expectations that lower prices could attract buyers.

METALS-Copper gains on U.S. data, China restocking
SHANGHAI, June 26 (Reuters) - London copper rose for a second session on a weaker dollar and short-covering on Tuesday, as traders bought back their positions ahead of the upcoming European Union Summit and took advantage of low prices following a 2.7 percent fall last week.
"The euro edged up against the dollar today, which means it is cheaper for Europeans to buy copper today and some of them have done so," said a LME trader.

PRECIOUS-Gold holds above $1,580 on EU summit uncertainty
SINGAPORE, June 26 (Reuters) - Gold held steady above $1,580 an ounce on Tuesday after rising in the previous session on growing uncertainty on whether a key European Union summit this week will be able to resolve the region's debt crisis.
"If the U.S. dollar remains strong, then gold may easily move down a little bit. We have to see if people are losing confidence in gold. One thing is for sure, the world's economy is slumping," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

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