20120827 1625 Global Markets & Commodities Related News.

GLOBAL MARKETS: Most Asian shares traded lower while European shares were expected to open flat to lower, with investor sentiment likely to be dominated once again by speculation as to whether key central banks would launch new stimulus measures. U.S. stocks climbed on Friday on news the European Central Bank is considering setting targets in a new bond-buying program that could help contain euro-zone borrowing costs and on hopes of more stimulus from the Federal Reserve.  (Reuters)

FOREX-Euro eases, upside seen capped by euro zone risks
SINGAPORE, Aug 27 (Reuters) - The euro inched lower against the dollar on Monday, taking a breather after last week's rally, with its upside seen capped ahead of major euro zone events in the next few weeks.
"There's a lot of event risk, and I think this event risk will keep the euro capped," said Mitul Kotecha, head of global foreign exchange strategy for Credit Agricole in Hong Kong. He predicted the euro "will struggle to get above $1.26 this week."

FOREX:The euro inched lower against the dollar, taking a breather after last week's rally, with its upside seen capped ahead of major euro zone events in the next few weeks. (Reuters)

Merkel tries to calm storms over Greece, ECB policy (Reuters)
Angela Merkel tried to calm a growing storm over euro zone crisis strategy on Sunday after the Bundesbank likened ECB bond-buying plans to a dangerous drug and a conservative ally of the German leader said Greece should leave the currency bloc by next year.

China industrial profit slide puts stimulus in focus (Reuters)
China's industrial sector posted a sharp profit drop in July, offering a fresh sign that slackening domestic and external demand has further weighed on corporate earnings and reinforcing calls for more policy easing to underpin the slowing economy.

Isaac heads for U.S. Gulf Coast after drenching south Florida (Reuters)
Tropical Storm Isaac lashed south Florida with winds and heavy rain on Sunday after battering the Caribbean, threatening to interrupt most U.S. offshore oil production in the Gulf of Mexico and disrupting plans for the Republican National Convention in Tampa.

GRAINS: U.S. new-crop soybeans hit a contract high, extending gains from the previous session, after farm newsletter Pro Farmer estimated drought-stricken U.S. soybean production would be worse than forecasts by the U.S. Department of Agriculture. (Reuters)

Corn, soy harvest seen below USDA due to drought-Pro Farmer (Reuters)
This summer's historic drought ravaged corn and soybean production around the U.S. Midwest more than the government is predicting, Pro Farmer said on Friday.

OIL: Oil futures rose more than a dollar, with Brent climbing above $115 per barrel, on supply worries as Tropical Storm Isaac threatened to interrupt most U.S. offshore oil production in the Gulf of Mexico. (Reuters)

BASE METALS: Shanghai copper edged up, supported by hopes of Chinese stimulus after a state-backed paper called for plans to tackle economic risks, while the U.S. Federal Reserve also raised expectations for further easing. LME is closed for a Bank Holiday in the UK. (Reuters)

PRECIOUS METALS: Gold rose to the loftiest level since mid-April, extending strong gains from last week as expectations for further monetary easing from the U.S. Federal Reserve kept sentiment buoyant. (Reuters)

Indonesia tin smelters halt output, exports halved
JAKARTA, Aug 24 (Reuters) - A stoppage by Indonesian tin miners because of weak global prices has increased to encompass over 90 percent of smelters, leading shipments to decline by more than half from the world's top exporter of the metal, tin executives said on Friday.
All but one or two of the 28 licensed smelters in the main tin producing region of Bangka-Belitung have now stopped operating, said the Indonesian Tin Association, an increase from around six being shut earlier this month.

Gold options show investors bracing for Fed let-down
LONDON, Aug 24 (Reuters) - A surge in bearish gold options positions this week shows that numbers of investors are braced for a blow to expectations the Federal Reserve will act to foster growth - prospects that have set gold on course for its biggest weekly rise since early June.
Until the release of U.S. Fed minutes on Wednesday, the gold price had traded in its narrowest range in August in 2-1/2 years, strait-jacketed by uncertainty among investors over what the U.S. central bank would do to aid a patchy economic recovery.

Managed money ups gold length, reduces copper shorts
Aug 24 (Reuters) - Money managers, including hedge funds and other large speculators, boosted their bullish bets in U.S. gold futures and options to the largest amount since early May on growing speculation central banks are set to launch more bullion-friendly stimulus measures.
They raised their net long positions in the precious metal by 28,567 contracts to 110,623 lots during the week ended Aug. 21, data from the Commodity Futures Trading Commission's (CFTC) Commitments of Traders showed on Friday.

India's STC sees gold imports 20 pct down in FY13
HYDERABAD, India, Aug 25 (Reuters) - The State Trading Corporation's (STC) gold imports are likely to decline by 20 percent to 80 tonnes in the 12 months to March 2013 as higher prices curb demand, the head of the operation run by the Indian government said on Saturday.
High inflation has hit consumers' disposable income and a 4 percent import duty has increased gold prices, triggering a sharp decline in gold imports into India, the world's biggest buyer of bullion.

METALS-Shanghai copper up on stimulus hopes, spot sales
SHANGHAI, Aug 27 (Reuters) - Shanghai copper edged up, supported by hopes of Chinese stimulus after a state-backed paper called for plans to tackle economic risks, while the U.S. Federal Reserve also raised expectations for further easing.
"Hopes of stimulus in the U.S. and China have boosted Shanghai copper. But upward momentum is capped by low trading interest today with the LME closed," said CIFCO Futures analyst Zhou Jie, adding that he expected Shanghai copper to be stuck within a tight range of 55,500 - 56,500 yuan.

PRECIOUS-Gold hits 4-1/2 month high on Fed stimulus hopes
SINGAPORE, Aug 27 (Reuters) - Gold rose to the loftiest level since mid-April on Monday, extending strong gains from last week as expectations for further monetary easing from the U.S. Federal Reserve kept sentiment buoyant.
"There are very strong expectations for the Fed's action, and the technical breakthrough last week will continue to boost prices," said Li Ning, an analyst at Shanghai CIFCO Futures.  Investors will closely watch the central bank symposium due to take place in Jackson Hole, Wyoming, later this week for clues on the next steps central banks will take to curb the euro zone debt crisis and stimulate global growth.


Euro Coal-prices subdued as Atlantic supplies improve
LONDON, Aug 24 (Reuters) - Physical prompt coal prices saw little movement in Europe on Friday, ahead of a long weekend in Britain, and the market remained subdued as a result of rising Colombian output and weak demand from the region's sluggish economy.
Traders said production in Colombia, where a rail strike led to a supply squeeze in earlier in August, was continuing to rise and was expected to reach normal output again by the end of next week, resulting the seaborne Atlantic coal market returning into surplus.

Asia Coal-Prices down on sluggish sales, low Chinese offers
SHANGHAI, Aug 24 (Reuters) - Australian thermal coal prices fell toward $91 a tonne this week on sluggish sales as buyers from China, the world's top consumer, remained on the sidelines while slowly digesting stocks at home, trade sources said.
Stocks at major Chinese ports continued to fall and coal prices in China steadied for a third week - suggesting that the market has stabilised after nearly three straight months of decline that rattled global markets.

Iron Ore-Spot prices near 3-yr trough, Shanghai rebar at record low
SINGAPORE, Aug 27 (Reuters) - Shanghai rebar futures hit a record contract low on Monday and sellers slashed iron ore price offers further, hoping to lure back buyers as benchmark rates languished at the lowest level in nearly three years.
Iron ore prices have fallen more than 33 percent from this year's peak, but traders said Chinese steel mills, the world's biggest buyers, were waiting for prices to decline further with no signs that China's steel demand will recover anytime soon.

Baltic index pushed by rising capesize rates
Aug 24 (Reuters) - The Baltic Exchange's main sea freight index, which is used to track rates for ships carrying dry commodities, rose marginally on Friday due to increased activity in the capesize segment.
The main index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, was up 2 points to 717 points.