GLOBAL MARKETS-Shares recover on earnings; focus shifts to Fed
TOKYO, April 25 (Reuters) - Asian shares rose on Wednesday as firm U.S. corporate earnings, signs of an improving U.S. housing market, and healthy demand for euro zone sovereign debt stoked risk appetite, while focus shifted to the Federal Reserve's meeting.
"The latest round of housing data releases seems to support our view that further easing is not needed. In the short term, equities could struggle if QE3 appears off the table," Barclays Capital analysts said in a research note.
COMMODITIES-Soy near 4-year highs; copper jumps
NEW YORK, April 24 (Reuters) - U.S. soybean prices settled up near four-year highs on Tuesday on strong exports and concern about rival crops in South America, while upbeat home sales in the United States boosted prices of copper which relies on construction.
"The strong demand base for soybeans is leading the charge higher," said Brian Hoops, analyst for Midwest Market Solutions.
OIL-Brent slips, narrows spread vs stronger US oil
NEW YORK, April 24 (Reuters) - Brent crude prices fell and U.S. crude edged up o n T uesday, narrowing the spread between the two benchmarks, while weak gasoline futures weighed on the complex as market participants rotated positions ahead of weekly inventory reports.
"(A)n expected upswing in imports during the coming weeks, soft Gulf coast and Midwest cash markets and possible sale of Sunoco's Philadelphia refinery all tilt in favor of renewed gasoline futures weakness," Jim Ritterbusch, president at Ritterbusch & Associates, said in a report.
NATURAL GAS-US natgas futures end down, first loss in 3 sessions
NEW YORK, April 24 (Reuters) - U.S. natural gas futures ended lower on Tuesday for the first time in three sessions as mild extended forecasts and record-high supplies pressured prices despite cooler weather this week and some technical buying after last week's 10-year low.
"The fundamentals look a little flat here from the weather side, so we're chalking up the early move (up) to technical momentum that has since sputtered out," Gelber & Associates analyst Pax Saunders said in a report.
EURO COAL-May S.African trades at $99.70/T
LONDON, April 24 (Reuters) - European prompt physical coal prices softened again on Tuesday but few trades were reported.
A May loading South African capesize cargo traded at $99.70 a tonne, falling below $100 once more, but the price reflects the discount which a very prompt cargo would have, traders said.
Wednesday, April 25, 2012
20120425 0958 Global Economy Related News.
South Korea: Consumer confidence rises to 11-month high
South Korean consumer confidence rose to the highest level in almost a year as improving signs for the US economy and European debt crisis offset worries over North Korea. The sentiment index was at 104 in April, the strongest since May 2011, rising from 101 in March, the Bank of Korea said. A reading above 100 indicates optimists outnumber pessimists. (Bloomberg)
Japan: Bank of Japan seen anteing up on stimulus as yen impact fades
Japan‟s central bank is set to ante up on stimulus measures as a rebound in the yen shows that the impact of a JPY10trn (USD123bn) expansion in asset purchases in February is fading. All 14 economists in a Bloomberg News survey predict additional easing when the Bank of Japan releases new inflation forecasts on 27 April. Most expect an increase ranging from JPY5trn to JPY10trn. (Bloomberg)
UK: March deficit larger than forecast
Britain posted a larger budget deficit than economists forecast in March, underscoring the challenge facing Chancellor of the Exchequer George Osborne as he tries to cut borrowing. Net borrowing excluding support for banks was GBP18.2bn (USD29.4bn), compared with GBP18bn a year earlier, the Office for National Statistics said. (Bloomberg)
US: Sales of new US homes exceeded estimates in March
Demand for new US homes was stronger than projected in March, showing more jobs and cheaper borrowing costs are helping stabilize the market. Houses sold at a 328,000 annual rate, down from an upwardly revised 353,000 pace in February that was the highest in two years, according to Commerce Department data. The median estimate in a Bloomberg News survey forecast a rate of 319,000. (Bloomberg)
US: Consumer confidence in US little changed as outlook cools
Confidence among US consumers was little changed in April as expectations over the outlook tempered increased optimism about the present. The Conference Board‟s confidence index was at 69.2 compared to a revised 69.5 in the prior month, figures from the New York-based private research group showed. The median forecast of economists surveyed by Bloomberg News called for a reading of 69.6. (Bloomberg)
South Korean consumer confidence rose to the highest level in almost a year as improving signs for the US economy and European debt crisis offset worries over North Korea. The sentiment index was at 104 in April, the strongest since May 2011, rising from 101 in March, the Bank of Korea said. A reading above 100 indicates optimists outnumber pessimists. (Bloomberg)
Japan: Bank of Japan seen anteing up on stimulus as yen impact fades
Japan‟s central bank is set to ante up on stimulus measures as a rebound in the yen shows that the impact of a JPY10trn (USD123bn) expansion in asset purchases in February is fading. All 14 economists in a Bloomberg News survey predict additional easing when the Bank of Japan releases new inflation forecasts on 27 April. Most expect an increase ranging from JPY5trn to JPY10trn. (Bloomberg)
UK: March deficit larger than forecast
Britain posted a larger budget deficit than economists forecast in March, underscoring the challenge facing Chancellor of the Exchequer George Osborne as he tries to cut borrowing. Net borrowing excluding support for banks was GBP18.2bn (USD29.4bn), compared with GBP18bn a year earlier, the Office for National Statistics said. (Bloomberg)
US: Sales of new US homes exceeded estimates in March
Demand for new US homes was stronger than projected in March, showing more jobs and cheaper borrowing costs are helping stabilize the market. Houses sold at a 328,000 annual rate, down from an upwardly revised 353,000 pace in February that was the highest in two years, according to Commerce Department data. The median estimate in a Bloomberg News survey forecast a rate of 319,000. (Bloomberg)
US: Consumer confidence in US little changed as outlook cools
Confidence among US consumers was little changed in April as expectations over the outlook tempered increased optimism about the present. The Conference Board‟s confidence index was at 69.2 compared to a revised 69.5 in the prior month, figures from the New York-based private research group showed. The median forecast of economists surveyed by Bloomberg News called for a reading of 69.6. (Bloomberg)
20120425 0957 Malaysia Corporate Related News.
Malakoff Corp to venture into Pakistan’s power industry
Malakoff Corp is looking to energy hungry Pakistan to find new investment opportunities and has proposed to its government the setting up two power plants including a 1,200MW imported coal-fired project and a 250MW wind power project. Pakistan is currently processing wind power projects on a fast-track basis to stem an energy crisis from occurring in the country. (Malaysian Reserve)
MRCB invests RM40m to build linking bridges at KL Sentral
Malaysian Resources Corp (MRCB) has invested about RM40m to build several linking bridges to facilitate smooth movement between buildings at KL Sentral. CEO Datuk Mohamed Razeek Hussain said the connection to Lot E, a green platinum building, has been completed, with escalators and elevators for the handicapped. He said the linking bridges would be completed by end-July or in August. (Malaysian Reserve)
No intention to review lending guidelines, says Zeti
Bank Negara Malaysia (BNM) has no intention to review its new guidelines on responsible lending for the time being, said governor Tan Sri Dr Zeti Akhtar Aziz. “Whatever needs to be resolved will be through bilateral discussion. Right now we have no intention,” she said yesterday when commenting on reports that the guidelines would be reviewed. (Financial Daily)
DRB-Hicom assures it will not cut Proton vendors
Conglomerate DRB-Hicom, which has extensive interests in auto component manufacturing, will not overhaul the auto parts supply network that supports Proton Holdings following its takeover of the national carmaker. Proton‟s parts suppliers said they received assurances that no group will be “cut out” from the vendor programme during a meeting with top level DRB-Hicom representative earlier this month. (Financial Daily)
Pestech to raise RM13m via IPO
Pestech International, an integrated electric power technology company aims to raise RM12.88m via an IPO of 12.88m new ordinary shares of RM0.50 each at an issue price of RM1 apiece. Pestech said the IPO would also involve an offer for sale of 8.58m existing shares. It said a portion of the proceeds from the IPO would be used for product development and business expansion in existing and developing markets. (Financial Daily)
Malakoff Corp is looking to energy hungry Pakistan to find new investment opportunities and has proposed to its government the setting up two power plants including a 1,200MW imported coal-fired project and a 250MW wind power project. Pakistan is currently processing wind power projects on a fast-track basis to stem an energy crisis from occurring in the country. (Malaysian Reserve)
MRCB invests RM40m to build linking bridges at KL Sentral
Malaysian Resources Corp (MRCB) has invested about RM40m to build several linking bridges to facilitate smooth movement between buildings at KL Sentral. CEO Datuk Mohamed Razeek Hussain said the connection to Lot E, a green platinum building, has been completed, with escalators and elevators for the handicapped. He said the linking bridges would be completed by end-July or in August. (Malaysian Reserve)
No intention to review lending guidelines, says Zeti
Bank Negara Malaysia (BNM) has no intention to review its new guidelines on responsible lending for the time being, said governor Tan Sri Dr Zeti Akhtar Aziz. “Whatever needs to be resolved will be through bilateral discussion. Right now we have no intention,” she said yesterday when commenting on reports that the guidelines would be reviewed. (Financial Daily)
DRB-Hicom assures it will not cut Proton vendors
Conglomerate DRB-Hicom, which has extensive interests in auto component manufacturing, will not overhaul the auto parts supply network that supports Proton Holdings following its takeover of the national carmaker. Proton‟s parts suppliers said they received assurances that no group will be “cut out” from the vendor programme during a meeting with top level DRB-Hicom representative earlier this month. (Financial Daily)
Pestech to raise RM13m via IPO
Pestech International, an integrated electric power technology company aims to raise RM12.88m via an IPO of 12.88m new ordinary shares of RM0.50 each at an issue price of RM1 apiece. Pestech said the IPO would also involve an offer for sale of 8.58m existing shares. It said a portion of the proceeds from the IPO would be used for product development and business expansion in existing and developing markets. (Financial Daily)
20120425 0956 Malaysia Market Related News.
Malaysia’s Top Fund to Buy More Consumer, Plantation Stocks (Source: Bloomberg)
Malaysia’s best-performing fund in the past year is buying consumer and plantation stocks that are benefiting from government efforts to bolster domestic growth and a rally in palm oil prices. Kenanga Growth Fund, with assets of 59 million ringgit ($19 million) as of March 31, favors companies including Dutch Lady Milk Industries Bhd. (DLM) and Nestle (Malaysia) Bhd., Chen Fan Fai, investment director at Kenanga Investors Bhd., said in an interview in Kuala Lumpur on April 23. The fund beat 370 other Malaysian equity mutual funds in the past year with an 18 percent return, according to data compiled by Bloomberg. Dutch Lady has doubled in the past year, outpacing the FTSE Bursa Malaysia KLCI Index’s (FBMKLCI) 3.9 percent gain.
Gauges of consumer and plantation stocks are the best performers of 10 industry groups on the Malaysian bourse in the past year on optimism Prime Minister Najib Razak’s 2012 budget plan to distribute cash to low-income families, raise wages for civil servants and boost spending on transportation will bolster growth and consumption. Palm-oil futures have surged 9.2 percent this year and hit a 13-month high on April 10. “Consumer stocks have done well because they are more resilient in any downturn and the government’s drive to boost income levels will also be positive for consumption,” Chen said. “We have always liked plantation stocks because demand for crude palm oil is ever on the rise.”
Election Concerns
The Kenanga Growth Fund (KUTNETF) beat 97 percent of its peers in the past three years and 98 percent of them over five years, according to data compiled by Bloomberg. It was named Malaysia’s best equity fund in 2011 by Morningstar Inc. Chen said he’s willing to buy stocks even before an election that Najib may call as early as June, according to four government officials who spoke on condition of anonymity last month. Concern a poor election result for Najib would disrupt the government’s spending plans has limited the KLCI index’s gain to 3.4 percent this year, the second-worst performance among Asia- Pacific benchmark indexes after Sri Lanka, according to data compiled by Bloomberg. The MSCI Emerging-Markets Index (MXEF) has risen 10 percent in 2012. Investors will probably be wary of the stock market before the polls, Tan Ting Min, an analyst at the Malaysian unit of Credit Suisse Group AG, wrote in a report dated March 7.
“Investors don’t like uncertainties,” said Kenanga’s Chen. “Uncertainties can be positive or negative. The outcome is not certain so nobody knows which way it’s going to go. We take a view that there is not going to be a change in the government.”
Higher Valuations
Gains by Malaysian consumer stocks pushed valuations relative to the Bloomberg World Consumer Non Cyclical Index (BWCNCY) to a four-month high on April 13. The Bursa Malaysia Consumer (KLCSU) Index of 136 stocks, which includes carmakers Tan Chong Motor Holdings Bhd. and Proton Holdings Bhd., has rallied 11 percent in the past 12 months, outpacing a 3.9 percent gain in the KLCI index. The Selangor state-based Nestle Malaysia (NESZ), the local unit of the world’s biggest food company, has advanced 16 percent. “We focus more on consumption,” Chen said. “Sector-wise, that’s probably our biggest bet.” Southeast Asia’s third-biggest economy may expand 4.2 percent in 2012 on domestic demand, thanks to increased private investment and state spending, the Malaysian Institute of Economic Research, a partly government-funded institute, said in a statement on April 17. The body earlier estimated 3.7 percent growth. This is in line with the central bank’s revised forecast of 4 percent to 5 percent on March 22.
Plantation Rally
Najib unveiled economic and government transformation plans in 2010 and identified $444 billion of private sector-led projects this decade to bolster growth and achieve high-income status by 2020. The Bursa Malaysia Plantation Index (KLPLN) of 43 members including IOI Corp. and Kuala Lumpur Kepong Bhd. (KLK) has surged 15 percent in the past year. The plantation measure trades at 13.9 times estimated profit, compared with a record-low 6.25 times in October 2008, weekly data compiled by Bloomberg shows. Palm oil will advance to 3,800 ringgit a metric ton in Kuala Lumpur by Dec. 31, the highest level since February 2011, according to the median of 11 analyst and trader estimates compiled by Bloomberg. Palm oil futures fell as much as 0.8 percent to 3,448 ringgit a metric ton yesterday. “Palm oil prices have been firmer than expected,” Chen said. “The offshoot of this will be higher income for families in the rural area who are involved in agriculture. This will also give a boost to consumption.”
Malaysia’s best-performing fund in the past year is buying consumer and plantation stocks that are benefiting from government efforts to bolster domestic growth and a rally in palm oil prices. Kenanga Growth Fund, with assets of 59 million ringgit ($19 million) as of March 31, favors companies including Dutch Lady Milk Industries Bhd. (DLM) and Nestle (Malaysia) Bhd., Chen Fan Fai, investment director at Kenanga Investors Bhd., said in an interview in Kuala Lumpur on April 23. The fund beat 370 other Malaysian equity mutual funds in the past year with an 18 percent return, according to data compiled by Bloomberg. Dutch Lady has doubled in the past year, outpacing the FTSE Bursa Malaysia KLCI Index’s (FBMKLCI) 3.9 percent gain.
Gauges of consumer and plantation stocks are the best performers of 10 industry groups on the Malaysian bourse in the past year on optimism Prime Minister Najib Razak’s 2012 budget plan to distribute cash to low-income families, raise wages for civil servants and boost spending on transportation will bolster growth and consumption. Palm-oil futures have surged 9.2 percent this year and hit a 13-month high on April 10. “Consumer stocks have done well because they are more resilient in any downturn and the government’s drive to boost income levels will also be positive for consumption,” Chen said. “We have always liked plantation stocks because demand for crude palm oil is ever on the rise.”
Election Concerns
The Kenanga Growth Fund (KUTNETF) beat 97 percent of its peers in the past three years and 98 percent of them over five years, according to data compiled by Bloomberg. It was named Malaysia’s best equity fund in 2011 by Morningstar Inc. Chen said he’s willing to buy stocks even before an election that Najib may call as early as June, according to four government officials who spoke on condition of anonymity last month. Concern a poor election result for Najib would disrupt the government’s spending plans has limited the KLCI index’s gain to 3.4 percent this year, the second-worst performance among Asia- Pacific benchmark indexes after Sri Lanka, according to data compiled by Bloomberg. The MSCI Emerging-Markets Index (MXEF) has risen 10 percent in 2012. Investors will probably be wary of the stock market before the polls, Tan Ting Min, an analyst at the Malaysian unit of Credit Suisse Group AG, wrote in a report dated March 7.
“Investors don’t like uncertainties,” said Kenanga’s Chen. “Uncertainties can be positive or negative. The outcome is not certain so nobody knows which way it’s going to go. We take a view that there is not going to be a change in the government.”
Higher Valuations
Gains by Malaysian consumer stocks pushed valuations relative to the Bloomberg World Consumer Non Cyclical Index (BWCNCY) to a four-month high on April 13. The Bursa Malaysia Consumer (KLCSU) Index of 136 stocks, which includes carmakers Tan Chong Motor Holdings Bhd. and Proton Holdings Bhd., has rallied 11 percent in the past 12 months, outpacing a 3.9 percent gain in the KLCI index. The Selangor state-based Nestle Malaysia (NESZ), the local unit of the world’s biggest food company, has advanced 16 percent. “We focus more on consumption,” Chen said. “Sector-wise, that’s probably our biggest bet.” Southeast Asia’s third-biggest economy may expand 4.2 percent in 2012 on domestic demand, thanks to increased private investment and state spending, the Malaysian Institute of Economic Research, a partly government-funded institute, said in a statement on April 17. The body earlier estimated 3.7 percent growth. This is in line with the central bank’s revised forecast of 4 percent to 5 percent on March 22.
Plantation Rally
Najib unveiled economic and government transformation plans in 2010 and identified $444 billion of private sector-led projects this decade to bolster growth and achieve high-income status by 2020. The Bursa Malaysia Plantation Index (KLPLN) of 43 members including IOI Corp. and Kuala Lumpur Kepong Bhd. (KLK) has surged 15 percent in the past year. The plantation measure trades at 13.9 times estimated profit, compared with a record-low 6.25 times in October 2008, weekly data compiled by Bloomberg shows. Palm oil will advance to 3,800 ringgit a metric ton in Kuala Lumpur by Dec. 31, the highest level since February 2011, according to the median of 11 analyst and trader estimates compiled by Bloomberg. Palm oil futures fell as much as 0.8 percent to 3,448 ringgit a metric ton yesterday. “Palm oil prices have been firmer than expected,” Chen said. “The offshoot of this will be higher income for families in the rural area who are involved in agriculture. This will also give a boost to consumption.”
20120425 0955 Global Market Related News.
Asian Stocks Snap Four-Day Loss on U.S. Homes Sales (Source: Bloomberg)
Asian stocks rose, with the regional benchmark index heading for its first advance in five days, as better-than-estimated company earnings and signs the U.S. housing market is stabilizing boosted the outlook for Asian exporters. Sony Corp., Japan’s biggest exporter of consumer electronics, gained 1 percent. Samsung Electronics Co. (005930), a supplier and competitor of Apple Inc., rose 1.3 percent in Seoul after the maker of iPhones and iPads reported profit almost doubled in the three months ended March. LG Display Co. climbed 3.2 percent after the world’s second-largest maker of liquid- crystal displays said it may return to profit this quarter. “A recovery trend on earnings is being seen both in Japan and the U.S. at the moment, boosting markets,” said Hiroichi Nishi, an equities manager in Tokyo at SMBC Nikko Securities Inc. “The U.S. economy is still in mild recovery.”
The MSCI Asia Pacific Index (MXAP) gained 0.4 percent to 123.70 as of 9:32 a.m. in Tokyo, with about five shares rising for each that fell. The gauge has fallen 1.4 percent in the past four days as political uncertainties in Europe deepened concern governments in the region will struggled to contain the sovereign-debt crisis and amid signs China’s economy is slowing.
Japanese Stock Futures Gain on U.S. Home Sales, Earnings (Source: Bloomberg)
Japanese stocks headed for their first advance in five days as better-than-estimated earnings at companies from Shimano Inc. to Apple Inc. and signs the U.S. housing market is stabilizing boosted the outlook for exporters. Shimano Inc. jumped 3.6 percent after the bicycle parts maker’s quarterly profit more than tripled. Sharp Corp. (6753), which supplies components for Apple’s iPhone, rose 1.5 percent after the U.S. company’s net income almost doubled last quarter. Sony Corp., Japan’s biggest exporter of consumer electronics, gained 1.4 percent as the yen weakened. “In addition to a weakening yen, a recovery trend on earnings is being seen both in Japan and the U.S. at the moment, boosting markets,” said Hiroichi Nishi, an equities manager in Tokyo at SMBC Nikko Securities Inc. “The U.S. economy is still in mild recovery.”
The Nikkei 225 Stock Average (NKY) gained 1.1 percent to 9,575.83 as of 9:12 a.m. in Tokyo, with volume a third lower than the 30- day average. The broader Topix Index rose 1 percent to 812.19, with more than seven times as many shares advancing as falling.
U.S. Stocks Rise Amid Better-Than-Forecast Earnings (Source: Bloomberg)
U.S. stocks advanced, following yesterday’s decline in the Standard & Poor’s 500 Index, amid better-than-estimated earnings at companies from AT&T Inc. to 3M (MMM) Co. and as data indicated the housing market is stabilizing. AT&T, the largest U.S. telephone company, and 3M, the maker of Post-it Notes, rose at least 1.5 percent. International Business Machines Corp. added 0.7 percent after the company boosted its buyback plan by $7 billion and raised its dividend. Juniper Networks Inc. increased 7.2 percent as revenue beat analysts’ projections. Apple Inc. (AAPL) jumped 7.5 percent at 5 p.m. New York time as profit almost doubled last quarter. The S&P 500 rose 0.4 percent to 1,371.97 at 4 p.m. New York time. The Dow Jones Industrial Average added 74.39 points, or 0.6 percent, to 13,001.56. The Nasdaq Composite Index lost 0.3 percent to 2,961.60. About 6.2 billion shares changed hands on U.S. exchanges, or 7.8 percent below the three-month average.
“Stocks have room to move higher,” said David Kelly, who helps oversee about $394 billion as chief market strategist at JPMorgan Funds in New York. “Earnings are healthy. The bar has been lowered so far that you can just walk over it. Housing is on the mend. A sign of a market top is when people are exuberant. There’s no exuberance as witnessed yesterday.”
Europe Stocks Rebound From Three-Month Low; Nordea Gains (Source: Bloomberg)
European stocks rebounded from a three-month low as earnings from Nordea Bank AB (NDA) to Kone Oyj (KNEBV) topped analyst estimates and sales of new homes in the U.S. exceeded forecasts. Nordea, the Nordic region’s biggest lender, rose 3.8 percent and Kone, a Finnish maker of elevators and escalators, surged 8.2 percent. TeliaSonera AB (TLSN) rallied 6.6 percent after saying it will receive 22 billion kronor ($3.3 billion) in dividends and proceeds from the sale of a stake in OAO MegaFon. Michelin & Cie. climbed 6.1 percent on increased revenue. The benchmark Stoxx Europe 600 Index (SXXP) gained 1 percent to 254.37 in London. The measure has advanced 4 percent this year as the European Central Bank disbursed 1 trillion euros ($1.3 trillion) to the region’s lenders to spur the availability of credit and boost the economy.
“Equities are stronger than in the fall, as central banks have moved to support the market with liquidity and removing the structural risks to banks, so markets should weather the recent turmoil better than last year,” said Hans Peterson, the chief investment officer of SEB Private Bank in Stockholm. “Investors are concerned about growth prospects, which may turn into a drag on the market, but that’s not the case yet.”
Yen Drops Versus Peers on Prospects BOJ to Add Stimulus (Source: Bloomberg)
The yen fell versus all of its 16 most-traded counterparts on speculation Bank of Japan (8301) officials will add to stimulus measures at a policy meeting this week. The yen remained lower after a one-day decline against the euro on expectations Asian stocks will climb after shares overseas rose, damping demand for haven assets. The greenback held a drop from yesterday versus the 17-nation euro before Federal Reserve policy makers conclude a two-day gathering today. The so-called Aussie dollar advanced after the first U.S. case of mad cow disease in six years increased prospects that demand for Australian beef will rise. “The yen is likely to remain weak heading into the BOJ meeting,” said Marito Ueda, senior managing director in Tokyo at FX Prime Corp. (8711), a currency margin company. “Gains in stocks are also negative for the yen.”
The yen traded at 107.41 per euro at 9:03 a.m. in Tokyo after declining 0.5 percent to 107.32 yesterday. Japan’s currency fetched 81.39 per dollar from 81.32. The greenback was little changed at $1.3196 per euro.
FOREX-Euro subdued ahead of Dutch auction; Aussie falls
LONDON, April 24 (Reuters) - The euro steadied against the dollar on Tuesday but further gains looked unlikely ahead of a debt sale in the Netherlands that will be watched for any sign of lacklustre demand after the country's governing coalition collapsed.
"If we do not see a disaster in the bond auction the euro will be driven by this sideways movement in a range-trading environment. But the euro zone is running out of safe haven assets," said Ulrich Leuchtmann, head of FX research at Commerzbank.
Sales of New U.S. Homes Exceeded Estimates in March: Economy (Source: Bloomberg)
Demand for new U.S. homes was stronger than projected in March, showing more jobs and cheaper borrowing costs are helping stabilize the market. Houses sold at a 328,000 annual rate, down from an upwardly revised 353,000 pace in February that was the highest in two years, according to Commerce Department data issued today in Washington. The median estimate in a Bloomberg News survey forecast a rate of 319,000. Other reports showed home prices are stabilizing and consumer confidence was little changed. Job gains, mortgage rates close to all-time lows and cheaper properties are underpinning residential real estate, which has been the economy’s weak spot. At the same time, immediate progress will be limited by distressed properties that will continue to hold down property values.
“Housing is going to gradually dig out of this deep hole because the job market is going to be firming,” said Ryan Sweet, a senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, the only analyst to correctly forecast the sales pace. “The one thing is the foreclosure pipeline,” Sweet said. Home values “may still have a little more room to fall, but this will probably be the year that prices find a bottom.”
Consumer Confidence in U.S. Little Changed as Outlook Cools (Source: Bloomberg)
Confidence among U.S. consumers was little changed in April as expectations over the outlook tempered increased optimism about the present. The Conference Board’s confidence index was at 69.2 com- pared to a revised 69.5 in the prior month, figures from the New York-based private research group showed today. The median forecast of economists surveyed by Bloomberg News called for a reading of 69.6. The smallest increase in employment in five months may have raised concern that growth is not fast enough to reduce unemployment. The report also showed households trimmed buying plans for automobiles, homes and vacations, showing that more jobs will be needed to boost consumer spending, which accounts for about 70 percent of the economy. “Overall, consumers are more upbeat about the state of the economy, but they remain cautiously optimistic,” Lynn Franco, director of the Conference Board Consumer Research Center, said in a statement.
Home Prices in U.S. Cities Fell at Slower Pace in February (Source: Bloomberg)
Home prices in 20 U.S. cities dropped at a slower pace in the year ended February, pointing to stabilization in the real-estate market. The S&P/Case-Shiller index of property values fell 3.5 percent from a year earlier, the smallest 12-month drop since February 2011, a report from the group showed today in New York. The median forecast of economists surveyed by Bloomberg News projected a 3.4 percent fall. The index climbed from the prior month on a seasonally adjusted basis for the first time since April of last year. Steadying home values are needed to lay the groundwork for a sustained rebound in the housing industry by giving prospective buyers confidence. Near record-low borrowing costs and more hiring may help the market absorb the foreclosures still in the pipeline, which may mean housing will no longer hinder economic growth. “Mortgage rates are very, very low, but you really need to see strong job growth,” said Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida. “It’s still a very long way to go before we get a full recovery.” Stock-index futures were little changed after the report. The contract on the Standard & Poor’s 500 Index maturing in June was at 1,363.4 at 9:21 a.m. in New York, up less that 0.1 percent from yesterday’s close.
Gundlach Says Fed Won’t Preemptively Raise Rates (Source: Bloomberg)
The Federal Reserve won’t preemptively raise interest rates to suppress inflation, said Jeffrey Gundlach, chief executive officer of DoubleLine Capital LP. “That is just not going to happen as long as we’re in this debt morass,” Gundlach said today at a conference in National Harbor, Maryland, held by the Investment Management Consultants Association, a membership group for brokers and investment advisers. “With all of this debt building up, one thing that’s been saving us is the interest rate on the debt has been collapsing,” Gundlach said. U.S. federal debt has risen to more than $15 trillion in 2011 from about $863 billion in 1980, according to the Federal Reserve. The Fed has held the federal funds rate at near zero since December 2008. In January the Federal Open Market Committee said economic conditions will probably warrant holding rates “exceptionally low” through 2014.
Raising rates would be “like shooting yourself in the head,” Gundlach said. Los Angeles-based DoubleLine manages more than $32 billion, primarily in fixed income. Treasury 10-year yields fell to 1.93 percent yesterday from about 4.64 percent five years ago, according to data compiled by Bloomberg.
Apple Profit Rises 94% on Growing Global IPhone Demand (Source: Bloomberg)
Apple Inc. (AAPL) profit almost doubled last quarter, reflecting robust demand for the iPhone in China and purchases of a new version of the iPad, allaying the growth concerns that sliced shares 12 percent in two weeks. Net income in the fiscal second quarter climbed 94 percent to $11.6 billion, or $12.30 a share, as sales rose 59 percent to $39.2 billion, Cupertino, California-based Apple said today in a statement. Analysts had predicted profit of $10.02 a share on revenue of $36.9 billion, data compiled by Bloomberg show. Chief Executive Officer Tim Cook is relying more on regions outside the U.S. for sales growth. Apple sold 35.1 million iPhones in the period after releasing the latest model in China and 21 other countries in January. That helped make up for sales declines from the previous quarter at the top U.S. mobile-phone carriers, Verizon Wireless and AT&T Inc. It also quelled speculation that Apple’s growth pace may slacken.
“This report should erase any doubt in investors’ minds that this company can’t continue to deliver,” said Jack Ablin, chief investment officer of Harris Private Bank in Chicago, which oversees about $60 billion, including Apple shares. “It’s astounding.”
Bank of Japan Seen Anteing Up on Stimulus as Yen Impact Fades (Source: Bloomberg)
Japan’s central bank is set to ante up on stimulus measures as a rebound in the yen shows that the impact of a 10 trillion yen ($123 billion) expansion in asset purchases in February is fading. All 14 economists in a Bloomberg News survey predict additional easing when the Bank of Japan releases new inflation forecasts on April 27. Most expect an increase ranging from 5 trillion yen to 10 trillion yen. One dynamic that may undermine stimulus efforts is Governor Masaaki Shirakawa’s own comments, repeated in the U.S. last week, that monetary policy has only a limited role in ending deflation and supporting growth. Former Bank of Japan (8301) board member Atsushi Mizuno says investors are confused on where the central bank stands, while JPMorgan Chase & Co. says failing to ease could see the yen strengthen further.
“The BOJ will have to clearly show powerful easing amid high market expecations and elevated political pressure,” said Hideo Kumano, chief economist at Dai-Ichi Life Research Institute in Tokyo and a former BOJ official. “Otherwise, investors will be more confused and the view will become more widespread that there is no change in the BOJ’s passive stance.” The yen traded around 81.1 per dollar in Tokyo yesterday after sinking to an 11-month low of 84.18 on March 15. Yields for benchmark 10-year bonds fell to the lowest since October 2010 this week on easing speculation.
BOJ Should Boost Monthly Bond Buys by 20%, Ex-Board Member Says (Source: Bloomberg)
The Bank of Japan (8301) should bolster its monthly purchases of government bonds by a fifth and double its inflation target at its April 27 policy meeting, a former board member said. Governor Masaaki Shirakawa and his board should also commit to pursuing monetary easing through 2014, mirroring the U.S. Federal Reserve’s pledge to keep rates near zero, Nobuyuki Nakahara, who served on the BOJ board from 1998 to 2002, said in a statement e-mailed to Bloomberg News today. The BOJ currently buys 1.8 trillion yen ($22 billion) in government debt each month. Some ruling Democratic Party of Japan lawmakers have called on the BOJ to do more to end deflation after it pledged to buy more government debt and introduced a 1 percent inflation target in February. Simply bolstering the size of the bank’s asset- purchase fund, its main policy tool, won’t translate into meaningful increases in monetary base or the central bank’s balance sheet, Nakahara said.
BOE’s Miles Says April Vote for More Stimulus Vindicated (Source: Bloomberg)
Bank of England policy maker David Miles said his vote for more so-called quantitative easing this month still looks vindicated as the economy is weak and data today might even show it contracted in the first quarter. “The weakness of demand, given the amount of spare capacity in the economy, still made a strategy of having monetary policy even more expansionary the right one,” Miles said in an interview in London yesterday. “On reflection that seems to me still the right strategy.” Miles was the sole official seeking more stimulus, after his colleague Adam Posen switched his vote and policy makers said inflation may turn out faster than forecast even though the U.K. economy might be in a recession. First-quarter gross domestic product data will be released at 9:30 a.m. in London. “It seems pretty likely that right now, growth in the economy is pretty weak, probably marginally positive, but pretty weak,” Miles said. “It wouldn’t be a great surprise if the GDP number was a small negative number.”
U.K. 10-year gilts rose to an intraday high after the comments yesterday, with the yield dropping three basis points to 2.10 percent.
French Bond Yields Test Hollande’s Economic Fealty (Source: Bloomberg)
Investors are steering away from French bonds as they cast a wary eye on election frontrunner Francois Hollande’s calls to ease austerity. French government debt ranked as the third-worst performer in Europe this month after Spanish and Italian securities as of yesterday, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. The decline in French bonds occurred in an anticipation of Hollande winning the first round of balloting against President Nicolas Sarkozy on April 22, which he did. “It’s not time to buy French bonds,” said Tom Elliott, a global strategist at JPMorgan Asset Management in London. “The bond market is still uncertain just how Socialist Hollande will turn out to be, or whether he will turn out to be a fairly centrist president.”
For Hollande, who leads in the polls for the decisive May 6 final round against Sarkozy, the jittery markets show investors want to be reassured of his commitment to economic rigor in the face of signs of crisis fatigue in Europe and at home. Hollande plans to reverse Sarkozy’s plan to raise the sales tax and cut labor costs. He also wants to renegotiate the euro area’s so- called fiscal pact to include a commitment to growth.
Asian stocks rose, with the regional benchmark index heading for its first advance in five days, as better-than-estimated company earnings and signs the U.S. housing market is stabilizing boosted the outlook for Asian exporters. Sony Corp., Japan’s biggest exporter of consumer electronics, gained 1 percent. Samsung Electronics Co. (005930), a supplier and competitor of Apple Inc., rose 1.3 percent in Seoul after the maker of iPhones and iPads reported profit almost doubled in the three months ended March. LG Display Co. climbed 3.2 percent after the world’s second-largest maker of liquid- crystal displays said it may return to profit this quarter. “A recovery trend on earnings is being seen both in Japan and the U.S. at the moment, boosting markets,” said Hiroichi Nishi, an equities manager in Tokyo at SMBC Nikko Securities Inc. “The U.S. economy is still in mild recovery.”
The MSCI Asia Pacific Index (MXAP) gained 0.4 percent to 123.70 as of 9:32 a.m. in Tokyo, with about five shares rising for each that fell. The gauge has fallen 1.4 percent in the past four days as political uncertainties in Europe deepened concern governments in the region will struggled to contain the sovereign-debt crisis and amid signs China’s economy is slowing.
Japanese Stock Futures Gain on U.S. Home Sales, Earnings (Source: Bloomberg)
Japanese stocks headed for their first advance in five days as better-than-estimated earnings at companies from Shimano Inc. to Apple Inc. and signs the U.S. housing market is stabilizing boosted the outlook for exporters. Shimano Inc. jumped 3.6 percent after the bicycle parts maker’s quarterly profit more than tripled. Sharp Corp. (6753), which supplies components for Apple’s iPhone, rose 1.5 percent after the U.S. company’s net income almost doubled last quarter. Sony Corp., Japan’s biggest exporter of consumer electronics, gained 1.4 percent as the yen weakened. “In addition to a weakening yen, a recovery trend on earnings is being seen both in Japan and the U.S. at the moment, boosting markets,” said Hiroichi Nishi, an equities manager in Tokyo at SMBC Nikko Securities Inc. “The U.S. economy is still in mild recovery.”
The Nikkei 225 Stock Average (NKY) gained 1.1 percent to 9,575.83 as of 9:12 a.m. in Tokyo, with volume a third lower than the 30- day average. The broader Topix Index rose 1 percent to 812.19, with more than seven times as many shares advancing as falling.
U.S. Stocks Rise Amid Better-Than-Forecast Earnings (Source: Bloomberg)
U.S. stocks advanced, following yesterday’s decline in the Standard & Poor’s 500 Index, amid better-than-estimated earnings at companies from AT&T Inc. to 3M (MMM) Co. and as data indicated the housing market is stabilizing. AT&T, the largest U.S. telephone company, and 3M, the maker of Post-it Notes, rose at least 1.5 percent. International Business Machines Corp. added 0.7 percent after the company boosted its buyback plan by $7 billion and raised its dividend. Juniper Networks Inc. increased 7.2 percent as revenue beat analysts’ projections. Apple Inc. (AAPL) jumped 7.5 percent at 5 p.m. New York time as profit almost doubled last quarter. The S&P 500 rose 0.4 percent to 1,371.97 at 4 p.m. New York time. The Dow Jones Industrial Average added 74.39 points, or 0.6 percent, to 13,001.56. The Nasdaq Composite Index lost 0.3 percent to 2,961.60. About 6.2 billion shares changed hands on U.S. exchanges, or 7.8 percent below the three-month average.
“Stocks have room to move higher,” said David Kelly, who helps oversee about $394 billion as chief market strategist at JPMorgan Funds in New York. “Earnings are healthy. The bar has been lowered so far that you can just walk over it. Housing is on the mend. A sign of a market top is when people are exuberant. There’s no exuberance as witnessed yesterday.”
Europe Stocks Rebound From Three-Month Low; Nordea Gains (Source: Bloomberg)
European stocks rebounded from a three-month low as earnings from Nordea Bank AB (NDA) to Kone Oyj (KNEBV) topped analyst estimates and sales of new homes in the U.S. exceeded forecasts. Nordea, the Nordic region’s biggest lender, rose 3.8 percent and Kone, a Finnish maker of elevators and escalators, surged 8.2 percent. TeliaSonera AB (TLSN) rallied 6.6 percent after saying it will receive 22 billion kronor ($3.3 billion) in dividends and proceeds from the sale of a stake in OAO MegaFon. Michelin & Cie. climbed 6.1 percent on increased revenue. The benchmark Stoxx Europe 600 Index (SXXP) gained 1 percent to 254.37 in London. The measure has advanced 4 percent this year as the European Central Bank disbursed 1 trillion euros ($1.3 trillion) to the region’s lenders to spur the availability of credit and boost the economy.
“Equities are stronger than in the fall, as central banks have moved to support the market with liquidity and removing the structural risks to banks, so markets should weather the recent turmoil better than last year,” said Hans Peterson, the chief investment officer of SEB Private Bank in Stockholm. “Investors are concerned about growth prospects, which may turn into a drag on the market, but that’s not the case yet.”
Yen Drops Versus Peers on Prospects BOJ to Add Stimulus (Source: Bloomberg)
The yen fell versus all of its 16 most-traded counterparts on speculation Bank of Japan (8301) officials will add to stimulus measures at a policy meeting this week. The yen remained lower after a one-day decline against the euro on expectations Asian stocks will climb after shares overseas rose, damping demand for haven assets. The greenback held a drop from yesterday versus the 17-nation euro before Federal Reserve policy makers conclude a two-day gathering today. The so-called Aussie dollar advanced after the first U.S. case of mad cow disease in six years increased prospects that demand for Australian beef will rise. “The yen is likely to remain weak heading into the BOJ meeting,” said Marito Ueda, senior managing director in Tokyo at FX Prime Corp. (8711), a currency margin company. “Gains in stocks are also negative for the yen.”
The yen traded at 107.41 per euro at 9:03 a.m. in Tokyo after declining 0.5 percent to 107.32 yesterday. Japan’s currency fetched 81.39 per dollar from 81.32. The greenback was little changed at $1.3196 per euro.
FOREX-Euro subdued ahead of Dutch auction; Aussie falls
LONDON, April 24 (Reuters) - The euro steadied against the dollar on Tuesday but further gains looked unlikely ahead of a debt sale in the Netherlands that will be watched for any sign of lacklustre demand after the country's governing coalition collapsed.
"If we do not see a disaster in the bond auction the euro will be driven by this sideways movement in a range-trading environment. But the euro zone is running out of safe haven assets," said Ulrich Leuchtmann, head of FX research at Commerzbank.
Sales of New U.S. Homes Exceeded Estimates in March: Economy (Source: Bloomberg)
Demand for new U.S. homes was stronger than projected in March, showing more jobs and cheaper borrowing costs are helping stabilize the market. Houses sold at a 328,000 annual rate, down from an upwardly revised 353,000 pace in February that was the highest in two years, according to Commerce Department data issued today in Washington. The median estimate in a Bloomberg News survey forecast a rate of 319,000. Other reports showed home prices are stabilizing and consumer confidence was little changed. Job gains, mortgage rates close to all-time lows and cheaper properties are underpinning residential real estate, which has been the economy’s weak spot. At the same time, immediate progress will be limited by distressed properties that will continue to hold down property values.
“Housing is going to gradually dig out of this deep hole because the job market is going to be firming,” said Ryan Sweet, a senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, the only analyst to correctly forecast the sales pace. “The one thing is the foreclosure pipeline,” Sweet said. Home values “may still have a little more room to fall, but this will probably be the year that prices find a bottom.”
Consumer Confidence in U.S. Little Changed as Outlook Cools (Source: Bloomberg)
Confidence among U.S. consumers was little changed in April as expectations over the outlook tempered increased optimism about the present. The Conference Board’s confidence index was at 69.2 com- pared to a revised 69.5 in the prior month, figures from the New York-based private research group showed today. The median forecast of economists surveyed by Bloomberg News called for a reading of 69.6. The smallest increase in employment in five months may have raised concern that growth is not fast enough to reduce unemployment. The report also showed households trimmed buying plans for automobiles, homes and vacations, showing that more jobs will be needed to boost consumer spending, which accounts for about 70 percent of the economy. “Overall, consumers are more upbeat about the state of the economy, but they remain cautiously optimistic,” Lynn Franco, director of the Conference Board Consumer Research Center, said in a statement.
Home Prices in U.S. Cities Fell at Slower Pace in February (Source: Bloomberg)
Home prices in 20 U.S. cities dropped at a slower pace in the year ended February, pointing to stabilization in the real-estate market. The S&P/Case-Shiller index of property values fell 3.5 percent from a year earlier, the smallest 12-month drop since February 2011, a report from the group showed today in New York. The median forecast of economists surveyed by Bloomberg News projected a 3.4 percent fall. The index climbed from the prior month on a seasonally adjusted basis for the first time since April of last year. Steadying home values are needed to lay the groundwork for a sustained rebound in the housing industry by giving prospective buyers confidence. Near record-low borrowing costs and more hiring may help the market absorb the foreclosures still in the pipeline, which may mean housing will no longer hinder economic growth. “Mortgage rates are very, very low, but you really need to see strong job growth,” said Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida. “It’s still a very long way to go before we get a full recovery.” Stock-index futures were little changed after the report. The contract on the Standard & Poor’s 500 Index maturing in June was at 1,363.4 at 9:21 a.m. in New York, up less that 0.1 percent from yesterday’s close.
Gundlach Says Fed Won’t Preemptively Raise Rates (Source: Bloomberg)
The Federal Reserve won’t preemptively raise interest rates to suppress inflation, said Jeffrey Gundlach, chief executive officer of DoubleLine Capital LP. “That is just not going to happen as long as we’re in this debt morass,” Gundlach said today at a conference in National Harbor, Maryland, held by the Investment Management Consultants Association, a membership group for brokers and investment advisers. “With all of this debt building up, one thing that’s been saving us is the interest rate on the debt has been collapsing,” Gundlach said. U.S. federal debt has risen to more than $15 trillion in 2011 from about $863 billion in 1980, according to the Federal Reserve. The Fed has held the federal funds rate at near zero since December 2008. In January the Federal Open Market Committee said economic conditions will probably warrant holding rates “exceptionally low” through 2014.
Raising rates would be “like shooting yourself in the head,” Gundlach said. Los Angeles-based DoubleLine manages more than $32 billion, primarily in fixed income. Treasury 10-year yields fell to 1.93 percent yesterday from about 4.64 percent five years ago, according to data compiled by Bloomberg.
Apple Profit Rises 94% on Growing Global IPhone Demand (Source: Bloomberg)
Apple Inc. (AAPL) profit almost doubled last quarter, reflecting robust demand for the iPhone in China and purchases of a new version of the iPad, allaying the growth concerns that sliced shares 12 percent in two weeks. Net income in the fiscal second quarter climbed 94 percent to $11.6 billion, or $12.30 a share, as sales rose 59 percent to $39.2 billion, Cupertino, California-based Apple said today in a statement. Analysts had predicted profit of $10.02 a share on revenue of $36.9 billion, data compiled by Bloomberg show. Chief Executive Officer Tim Cook is relying more on regions outside the U.S. for sales growth. Apple sold 35.1 million iPhones in the period after releasing the latest model in China and 21 other countries in January. That helped make up for sales declines from the previous quarter at the top U.S. mobile-phone carriers, Verizon Wireless and AT&T Inc. It also quelled speculation that Apple’s growth pace may slacken.
“This report should erase any doubt in investors’ minds that this company can’t continue to deliver,” said Jack Ablin, chief investment officer of Harris Private Bank in Chicago, which oversees about $60 billion, including Apple shares. “It’s astounding.”
Bank of Japan Seen Anteing Up on Stimulus as Yen Impact Fades (Source: Bloomberg)
Japan’s central bank is set to ante up on stimulus measures as a rebound in the yen shows that the impact of a 10 trillion yen ($123 billion) expansion in asset purchases in February is fading. All 14 economists in a Bloomberg News survey predict additional easing when the Bank of Japan releases new inflation forecasts on April 27. Most expect an increase ranging from 5 trillion yen to 10 trillion yen. One dynamic that may undermine stimulus efforts is Governor Masaaki Shirakawa’s own comments, repeated in the U.S. last week, that monetary policy has only a limited role in ending deflation and supporting growth. Former Bank of Japan (8301) board member Atsushi Mizuno says investors are confused on where the central bank stands, while JPMorgan Chase & Co. says failing to ease could see the yen strengthen further.
“The BOJ will have to clearly show powerful easing amid high market expecations and elevated political pressure,” said Hideo Kumano, chief economist at Dai-Ichi Life Research Institute in Tokyo and a former BOJ official. “Otherwise, investors will be more confused and the view will become more widespread that there is no change in the BOJ’s passive stance.” The yen traded around 81.1 per dollar in Tokyo yesterday after sinking to an 11-month low of 84.18 on March 15. Yields for benchmark 10-year bonds fell to the lowest since October 2010 this week on easing speculation.
BOJ Should Boost Monthly Bond Buys by 20%, Ex-Board Member Says (Source: Bloomberg)
The Bank of Japan (8301) should bolster its monthly purchases of government bonds by a fifth and double its inflation target at its April 27 policy meeting, a former board member said. Governor Masaaki Shirakawa and his board should also commit to pursuing monetary easing through 2014, mirroring the U.S. Federal Reserve’s pledge to keep rates near zero, Nobuyuki Nakahara, who served on the BOJ board from 1998 to 2002, said in a statement e-mailed to Bloomberg News today. The BOJ currently buys 1.8 trillion yen ($22 billion) in government debt each month. Some ruling Democratic Party of Japan lawmakers have called on the BOJ to do more to end deflation after it pledged to buy more government debt and introduced a 1 percent inflation target in February. Simply bolstering the size of the bank’s asset- purchase fund, its main policy tool, won’t translate into meaningful increases in monetary base or the central bank’s balance sheet, Nakahara said.
BOE’s Miles Says April Vote for More Stimulus Vindicated (Source: Bloomberg)
Bank of England policy maker David Miles said his vote for more so-called quantitative easing this month still looks vindicated as the economy is weak and data today might even show it contracted in the first quarter. “The weakness of demand, given the amount of spare capacity in the economy, still made a strategy of having monetary policy even more expansionary the right one,” Miles said in an interview in London yesterday. “On reflection that seems to me still the right strategy.” Miles was the sole official seeking more stimulus, after his colleague Adam Posen switched his vote and policy makers said inflation may turn out faster than forecast even though the U.K. economy might be in a recession. First-quarter gross domestic product data will be released at 9:30 a.m. in London. “It seems pretty likely that right now, growth in the economy is pretty weak, probably marginally positive, but pretty weak,” Miles said. “It wouldn’t be a great surprise if the GDP number was a small negative number.”
U.K. 10-year gilts rose to an intraday high after the comments yesterday, with the yield dropping three basis points to 2.10 percent.
French Bond Yields Test Hollande’s Economic Fealty (Source: Bloomberg)
Investors are steering away from French bonds as they cast a wary eye on election frontrunner Francois Hollande’s calls to ease austerity. French government debt ranked as the third-worst performer in Europe this month after Spanish and Italian securities as of yesterday, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. The decline in French bonds occurred in an anticipation of Hollande winning the first round of balloting against President Nicolas Sarkozy on April 22, which he did. “It’s not time to buy French bonds,” said Tom Elliott, a global strategist at JPMorgan Asset Management in London. “The bond market is still uncertain just how Socialist Hollande will turn out to be, or whether he will turn out to be a fairly centrist president.”
For Hollande, who leads in the polls for the decisive May 6 final round against Sarkozy, the jittery markets show investors want to be reassured of his commitment to economic rigor in the face of signs of crisis fatigue in Europe and at home. Hollande plans to reverse Sarkozy’s plan to raise the sales tax and cut labor costs. He also wants to renegotiate the euro area’s so- called fiscal pact to include a commitment to growth.
20120425 0955 Global Commodities Related News.
GRAINS-U.S. wheat up for 2nd day on weather; soy rebounds
SINGAPORE, April 24 (Reuters) - U.S. wheat edged up , while corn was little changed after climbing 1.6 percent in the last session on forecasts for crop-threatening cold weather and talk of Chinese buying.
"U.S. corn plantings were a bit lower than what the market had expected because of the rain and there has been talk of potential cold weather which will not be good for the early planted corn," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne.
Ukraine exports 1.75 mln T grain so far in April
KIEV, April 24 (Reuters) - Ukraine has exported 1.75 million tonnes of grain, mostly corn, so far in April, Interfax Ukraine news agency quoted official data as showing on Tuesday.
The agency said the volume included 1.13 million tonnes of corn, 490,000 tonnes of wheat and 120,000 tonnes of barley.
Ukraine '12 wheat crop could fall to 11-14 mln T
KIEV, April 24 (Reuters) - Ukraine is set for a sharp fall in the 2012 wheat harvest, with the crop expected at 11 million to 14 million tonnes versus 22.3 million in 2011 due to poor weather during sowing and wintering, a senior weather forecaster said on Tuesday.
"If we have rains in May, the harvest could be 14 million tonnes. Otherwise, 11 to 12 million," Tetyana Adamenko, head of the agricultural department of Ukraine's meteorological service, told Reuters.
US corn planting slows; soy seeding off to record start
CHICAGO, April 23 (Reuters) - U.S. farmers east of the Mississippi River made good planting progress, while growers in western areas of the Corn Belt were slowed by rainy weather, a U.S. Agriculture Department report showed on Monday.
The USDA's weekly crop progress and conditions report showed that U.S. corn seeding was 28 percent completed as of April 22, up from 17 percent a week ago and ahead of the five-year average of 15 percent, but down from analysts expectations.
Ukraine 2012 early grain sowing near end
KIEV, April 23 (Reuters) - Ukrainian farms have almost completed the 2012 early spring sowing at 3.6 million hectares as of April 23 or 96 percent of the expected area, the Farm Ministry said on Monday.
The ministry said in a statement farmers had also started the sowing of corn and sunflower, which should replace winter grains in areas hit by poor weather this winter.
EU raises wheat, cuts barley, rapeseed yield outlook
PARIS, April 23 (Reuters) - The European Commission's crop-monitoring unit on Monday raised slightly its forecast for the average yield of this year's soft wheat crop in the European Union but trimmed its outlook for barley and rapeseed yields.
"In general the current prospects for EU 27 yields are on average," the Monitoring Agricultural Resources (MARS) research unit said in a report.
Market Recap: Wheat Futures (Source: CME)
Wheat futures were stronger much of the day, but softened in late trade to end mostly weaker and near session lows. Chicago wheat ended steady to 4 1/4 cents lower, Kansas City was mostly around 2 cents lower and Minneapolis ended mostly 7 to 8 cents lower, although far-deferreds ended mixed. Early support came on spillover from neighboring pits as well as help from positive outside markets.
Wheat Market Recap Report (Source: CME)
July Wheat finished unchanged at 632 1/2, 14 1/2 off the high and 1 3/4 up from the low. December Wheat closed down 3/4 at 671 1/4. This was 1 3/4 up from the low and 14 off the high. May wheat closed slightly lower on the session after trading as much as 14 1/4 cents higher early today. A positive tilt to outside markets and cold weather concerns for the weekend and early next week for crops in Illinois, Indiana and Ohio helped to support active buying and more short-covering in wheat this morning. This pushed the market to the highest level since April 13th with July wheat now up as much as 37 3/4 cents from last weeks lows. A smaller Ukraine crop estimate added to the positive tone. Crop conditions declined slightly and spring wheat progress remains on a record fast pace. July Minneapolis wheat closed down 8 1/2 cents with the fast planting pace for spring wheat helping to pressure. Canadian wheat planted area was pegged at 24.3 million acres, up 13% from last year and about 1 million acres above trade expectations. A private forecaster in Europe pegged German wheat production at 22.2 million tonnes this year from 22.7 million last year. The market is beginning to view the May production report with an eye on big yield and production estimates for the winter wheat crop. July Oats closed up 15 3/4 at 342 1/2. This was 13 1/2 up from the low and 2 1/2 off the high.
Market Recap: Corn Futures (Source: CME)
Corn futures closed 2 1/2 to 4 1/2 cents lower in all but the September contract, which settled 3/4 cent higher. Corn futures finished in the lower end of today's range. Corn futures were initially supported by news of a daily corn sale totaling 480,000 metric tons to an unknown destination. Traders assumed this was confirmation of the rumored Chinese purchases.
Corn Market Recap for 4/24/2012 (Source: CME)
July Corn finished down 4 1/2 at 608, 13 3/4 off the high and 3 up from the low. December Corn closed down 4 at 541 1/2. This was 3 3/4 up from the low and 8 1/2 off the high. May corn moved from sharply higher on the day early in the session to close moderately lower on the day. The market saw confirmation of China demand from the USDA sales news this morning and the market surged higher early in the day to post the early high. However, "buy the rumor, sell the fact selling helped to spark a sell-off from the highs with the market trading just slightly higher on the day into the mid-session and December corn moving down on the day. December corn closed 4 cents lower after trading as much as 5 1/2 higher early. The early rally pushed the market to the highest level since April 13th. Private exporters reported a sale of 480,000 tonnes of US corn to unknown destination for the 2011/12 season. Traders believe this sale is to China. The slower than expected plantings pace and a cold weather outlook for the next week helped to support the market as well. September corn gained 4 3/4 cents on the December corn as traders see "less" chances of early harvested corn due to the slower plantings pace and a cool outlook for the next 10 days. Taiwan bought 60,000 tonnes of corn from Brazil. July Rice finished down 0.005 at 15.925, 0.005 off the high and 0.055 up from the low.
Dow's new corn: "time bomb" or farmers' dream? (Source: CME)
A new biotech corn developed by Dow AgroSciences could answer the prayers of U.S. farmers plagued by a fierce epidemic of super-weeds. Or it could trigger a flood of dangerous chemicals that may make weeds even more resistant and damage other important U.S. crops.
Or, it could do both."Enlist," entering the final stages of regulatory approval, has become the latest flashpoint in the debate about the risks and rewards about farm technology. With a deadline to submit public comments on Dow's proposal at the end of this week, more than 5,000 individuals and groups have already weighed in. Dow Agrosciences, a unit of Dow Chemical Co , hopes to have the product approved this year and released by the 2013 crop.
Algeria's Q1 grain imports down 12.7 pct y/y (Source: CME)
Algeria's wheat imports in the first quarter of this year were down 12.7 percent on the same period in 2011, customs data showed, after an easing off in social unrest and a more promising domestic harvest softened demand.
US corn planting slows; soy seeding off to record start (Source: CME)
U.S. farmers east of the Mississippi River made good planting progress, while growers in western areas of the Corn Belt were slowed by rainy weather, a U.S. Agriculture Department report showed on Monday.
The USDA's weekly crop progress and conditions report showed that U.S. corn seeding was 28 percent completed as of April 22, up from 17 percent a week ago and ahead of the five-year average of 15 percent, but down from analysts expectations.
SOFTS-Sugar, coffee steady above multi-month lows
LONDON, April 24 (Reuters) - Raw sugar futures on ICE steadied in early trading, hovering above the previous session's 11-month low, while arabica coffee also firmed, consolidating above an 18-month low hit on April 16.
Raw sugar futures consolidated, with the lower price range expected to stimulate further interest on the physical market, following recent purchases by Egypt and Tunisia.
Vietnam Coffee-New crop may rise, trade moderate
HANOI, April 24 (Reuters) - Vietnamese coffee trading has been moderate as prices held near a key level in the past week even as stock levels were good and the next harvest may show a gain over the previous period, traders and an industry official said on Tuesday.
Output from the next 2012/2013 coffee crop in Daklak, Vietnam's top growing province, is forecast to rise around 10 percent to 430,000-450,000 tonnes, or 7.2 million to 7.5 million bags, thanks to good weather, an industry official said.
India could export 3 mln tonnes sugar in 2012/13 - industry
NEW DELHI, April 24 (Reuters) - India could export 3 million tonnes of sugar in 2012/13 -- the same as approved so far this year -- with output of at least 25 million tonnes, a senior industry official said, keeping the world's second-biggest producer exporting for a third straight year.
India, which is the world's biggest consumer of sugar, returned to exports in 2010 after a severe drought in 2009 forced it to import about 2.5 million tonnes, sending global prices sharply higher.
Brazil cotton exports seen record large -producers
SAO PAULO, April 23 (Reuters) - Brazil's 2011/12 cotton exports should jump by more than half from last season to a record 1.3 million tonnes, the national producers' association said, as cooling domestic demand shifts the sector's focus to foreign markets.
Increasing demand by China was providing a new outlet for the fiber at a time when imports of synthetic fiber from their depressed demand at home, said Sergio De Marco, president of the Brazilian Cotton Producers' Association, Abrapa.
Good weather spell lifts Ivorian mid-crop cocoa hopes
ABIDJAN, April 23 (Reuters) - Adequate rains mixed with sunny spells last week in most of Ivory Coast's cocoa growing regions provided adequate growth conditions for the top producer's April to September mid-crop cocoa, farmers and analysts said on Monday.
In western, southern and eastern cocoa regions, farmers said rainfall during past week offered ideal conditions to boost the development of cocoa pods, however, continued dry conditions in the coastal regions raised some concerns.
China seen importing 3 mln T sugar in 2011/12-ISO
NEW DELHI, April 23 (Reuters) - China is likely to import 3 million tonnes of sugar in 2011/12, a top official of the International Sugar Organisation (ISO) said at a conference in India, the world's second biggest producer after Brazil.
"China will remain a big importer. They produce around 11 million tonnes but they need 14.0-14.5 million tonnes," ISO Executive Director Peter Baron told reporters.
China sandstorm hits cotton crops, small impact on output
BEIJING/SHANGHAI, April 23 (Reuters) - Cotton crops just planted in China's northwestern province of Xinjiang have been damaged by a heavy sandstorm over the past week, but there will be limited impact on this year's harvest, analysts said on Monday.
China is the world's largest producer and consumer of cotton. A fall in its domestic supply, which rose 11 percent last year to 6.6 million tonnes, could hoist imports higher and roil world prices.
India to produce surplus sugar in 2012-13, extend exports
NEW DELHI, April 23 (Reuters) - Top sugar consumer India is expected to produce enough of the sweetener in the coming 2012-2013 productions season to allow exports for the third consecutive year, the head of its sugar mill body said on Monday.
India, the world's second-largest producer of sugar after Brazil, was hit by a severe drought in 2009 and had to import about 2.5 million tonnes, sending global prices on a rally. India returned to exports in 2010/11.
Coal Seen Rebounding as China Sets Steel Output Record (Source: Bloomberg)
Coking coal prices are set to rebound as early as July from four straight quarterly declines as China and India seek raw material overseas to fire new steel production in the world’s fastest-growing major economies. Contract prices that fell to $206 a metric ton for the quarter ending June 30 may rebound to average $225 a ton this financial year, based on the mean estimate of 10 analysts, steelmakers and mining companies surveyed by Bloomberg. Contracts of coking coal, a key ingredient used to make steel, peaked at $330 in the June quarter last year. China, the largest steel producer, is leading demand growth forecast at almost 10 percent this year. It started about 10 new blast furnaces in the past six months, lifting output to a record in March, according to market researcher Custeel.com. India, the third-biggest steelmaker, is set to boost capacity a third to more than 100 million tons by March in a five-year $1 trillion plan to build roads, bridges and railway networks.
“Rising Indian imports will have a positive impact on coking coal,” said Natalie Robertson, an analyst at ANZ Banking Group Ltd. in Melbourne. “The near-term prices will more closely track development in China.” China may surpass Japan as the biggest coking coal importer by 2015, a position it may eventually relinquish to India, Robertson said.
Oil Trades Near One-Week High as U.S. Stockpiles Decline (Source: Bloomberg)
Oil traded near the highest level in a week in New York after the American Petroleum Institute said crude inventories fell in the U.S., the world’s biggest consumer of the commodity. Futures were little changed after rising 0.4 percent yesterday. U.S. stockpiles decreased by 985,000 barrels last week, the industry-funded API said. An Energy Department report today is forecast to show a gain of 2.8 million barrels. The Arabian Gulf Oil Co., Libya’s largest crude producer, warned that it may have to cease production because of protests, according to the state-run Libya News Agency. Crude for June delivery was at $103.74 a barrel, up 19 cents, in electronic trading on the New York Mercantile Exchange at 8:47 a.m. Tokyo time. The contract rose 44 cents to $103.55 yesterday, the highest close since April 17. Front-month prices are 5 percent higher this year.
Brent oil for June settlement declined 55 cents, or 0.5 percent, to $118.16 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark contract closed at a premium of $14.61 to New York futures. The spread between the contracts surged to a record $27.88 on Oct. 14.
OIL-Brent steady under $119, supply worries aid; Europe eyed
SINGAPORE, April 24 (Reuters) - Brent oil steadied near $119 a barrel on Tuesday, as a production stoppage in the North Sea and potential supply disruptions from Iran kept prices off lows hit in the previous session amid concerns about a euro zone crisis.
"The whole macro picture at the moment just doesn't look good for crude. It's looking pretty bearish," said Jim Ritterbusch, president of oil trading consultant Ritterbusch & Associates in Galena, Illinois.
China cuts Iran oil imports in March most this year
BEIJING/SEOUL, April 23 (Reuters) - China halved its Iranian crude imports in March compared with a year earlier due to disputes over contract terms, its deepest cut so far this year as Western sanctions complicate Tehran's oil exports.
South Korea cut its imports by 40 percent in March from a year earlier, official data showed, as it sought to secure an exemption from U.S. sanctions. Japan, which has secured a waiver, made steep cuts in April imports.
Iran squeezed by Asia oil import cutbacks
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
SINGAPORE, April 24 (Reuters) - Virtually every day there is news on how Iran's oil exports to Asia are being squeezed by Western sanctions, but the question that still remains unresolved is just how much pain is Tehran feeling.
The latest sign that Iran may be starting to feel the pinch is that half of the Islamic Republic's tanker fleet is being used for floating storage, presumably because buyers for cargoes can't be found.
Gold May Decline on Concern Over Slack Physical Demand (Source: Bloomberg)
Gold rose for the third time in four sessions as a weaker dollar increased the appeal of the precious metal as an alternative investment. The dollar declined as much as 0.4 percent against a basket of currencies as lower yields of Spanish and Italian bonds eased concerns that Europe’s debt crisis is worsening. The pound reached an almost six-month high against the dollar after the Debt Management Office said Britain’s net-financing requirements had fallen. “News of some stability in Europe is pushing the dollar lower,” Sterling Smith, a market analyst at Country Hedging in St. Paul, Minnesota, said in a telephone interview. “People are willing to consider riskier assets today.” Gold futures for June delivery climbed 0.7 percent to settle at $1,643.80 an ounce at 1:42 p.m. on the Comex in New York. Prices have gained 4.9 percent this year.
Mexico boosted its gold reserves by 16.8 metric tons to 122.6 tons last month, according to data on the International Monetary Fund’s website. Nations including Turkey, Russia and Kazakhstan also increased bullion holdings in March, the data show.
SINGAPORE, April 24 (Reuters) - U.S. wheat edged up , while corn was little changed after climbing 1.6 percent in the last session on forecasts for crop-threatening cold weather and talk of Chinese buying.
"U.S. corn plantings were a bit lower than what the market had expected because of the rain and there has been talk of potential cold weather which will not be good for the early planted corn," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne.
Ukraine exports 1.75 mln T grain so far in April
KIEV, April 24 (Reuters) - Ukraine has exported 1.75 million tonnes of grain, mostly corn, so far in April, Interfax Ukraine news agency quoted official data as showing on Tuesday.
The agency said the volume included 1.13 million tonnes of corn, 490,000 tonnes of wheat and 120,000 tonnes of barley.
Ukraine '12 wheat crop could fall to 11-14 mln T
KIEV, April 24 (Reuters) - Ukraine is set for a sharp fall in the 2012 wheat harvest, with the crop expected at 11 million to 14 million tonnes versus 22.3 million in 2011 due to poor weather during sowing and wintering, a senior weather forecaster said on Tuesday.
"If we have rains in May, the harvest could be 14 million tonnes. Otherwise, 11 to 12 million," Tetyana Adamenko, head of the agricultural department of Ukraine's meteorological service, told Reuters.
US corn planting slows; soy seeding off to record start
CHICAGO, April 23 (Reuters) - U.S. farmers east of the Mississippi River made good planting progress, while growers in western areas of the Corn Belt were slowed by rainy weather, a U.S. Agriculture Department report showed on Monday.
The USDA's weekly crop progress and conditions report showed that U.S. corn seeding was 28 percent completed as of April 22, up from 17 percent a week ago and ahead of the five-year average of 15 percent, but down from analysts expectations.
Ukraine 2012 early grain sowing near end
KIEV, April 23 (Reuters) - Ukrainian farms have almost completed the 2012 early spring sowing at 3.6 million hectares as of April 23 or 96 percent of the expected area, the Farm Ministry said on Monday.
The ministry said in a statement farmers had also started the sowing of corn and sunflower, which should replace winter grains in areas hit by poor weather this winter.
EU raises wheat, cuts barley, rapeseed yield outlook
PARIS, April 23 (Reuters) - The European Commission's crop-monitoring unit on Monday raised slightly its forecast for the average yield of this year's soft wheat crop in the European Union but trimmed its outlook for barley and rapeseed yields.
"In general the current prospects for EU 27 yields are on average," the Monitoring Agricultural Resources (MARS) research unit said in a report.
Market Recap: Wheat Futures (Source: CME)
Wheat futures were stronger much of the day, but softened in late trade to end mostly weaker and near session lows. Chicago wheat ended steady to 4 1/4 cents lower, Kansas City was mostly around 2 cents lower and Minneapolis ended mostly 7 to 8 cents lower, although far-deferreds ended mixed. Early support came on spillover from neighboring pits as well as help from positive outside markets.
Wheat Market Recap Report (Source: CME)
July Wheat finished unchanged at 632 1/2, 14 1/2 off the high and 1 3/4 up from the low. December Wheat closed down 3/4 at 671 1/4. This was 1 3/4 up from the low and 14 off the high. May wheat closed slightly lower on the session after trading as much as 14 1/4 cents higher early today. A positive tilt to outside markets and cold weather concerns for the weekend and early next week for crops in Illinois, Indiana and Ohio helped to support active buying and more short-covering in wheat this morning. This pushed the market to the highest level since April 13th with July wheat now up as much as 37 3/4 cents from last weeks lows. A smaller Ukraine crop estimate added to the positive tone. Crop conditions declined slightly and spring wheat progress remains on a record fast pace. July Minneapolis wheat closed down 8 1/2 cents with the fast planting pace for spring wheat helping to pressure. Canadian wheat planted area was pegged at 24.3 million acres, up 13% from last year and about 1 million acres above trade expectations. A private forecaster in Europe pegged German wheat production at 22.2 million tonnes this year from 22.7 million last year. The market is beginning to view the May production report with an eye on big yield and production estimates for the winter wheat crop. July Oats closed up 15 3/4 at 342 1/2. This was 13 1/2 up from the low and 2 1/2 off the high.
Market Recap: Corn Futures (Source: CME)
Corn futures closed 2 1/2 to 4 1/2 cents lower in all but the September contract, which settled 3/4 cent higher. Corn futures finished in the lower end of today's range. Corn futures were initially supported by news of a daily corn sale totaling 480,000 metric tons to an unknown destination. Traders assumed this was confirmation of the rumored Chinese purchases.
Corn Market Recap for 4/24/2012 (Source: CME)
July Corn finished down 4 1/2 at 608, 13 3/4 off the high and 3 up from the low. December Corn closed down 4 at 541 1/2. This was 3 3/4 up from the low and 8 1/2 off the high. May corn moved from sharply higher on the day early in the session to close moderately lower on the day. The market saw confirmation of China demand from the USDA sales news this morning and the market surged higher early in the day to post the early high. However, "buy the rumor, sell the fact selling helped to spark a sell-off from the highs with the market trading just slightly higher on the day into the mid-session and December corn moving down on the day. December corn closed 4 cents lower after trading as much as 5 1/2 higher early. The early rally pushed the market to the highest level since April 13th. Private exporters reported a sale of 480,000 tonnes of US corn to unknown destination for the 2011/12 season. Traders believe this sale is to China. The slower than expected plantings pace and a cold weather outlook for the next week helped to support the market as well. September corn gained 4 3/4 cents on the December corn as traders see "less" chances of early harvested corn due to the slower plantings pace and a cool outlook for the next 10 days. Taiwan bought 60,000 tonnes of corn from Brazil. July Rice finished down 0.005 at 15.925, 0.005 off the high and 0.055 up from the low.
Dow's new corn: "time bomb" or farmers' dream? (Source: CME)
A new biotech corn developed by Dow AgroSciences could answer the prayers of U.S. farmers plagued by a fierce epidemic of super-weeds. Or it could trigger a flood of dangerous chemicals that may make weeds even more resistant and damage other important U.S. crops.
Or, it could do both."Enlist," entering the final stages of regulatory approval, has become the latest flashpoint in the debate about the risks and rewards about farm technology. With a deadline to submit public comments on Dow's proposal at the end of this week, more than 5,000 individuals and groups have already weighed in. Dow Agrosciences, a unit of Dow Chemical Co , hopes to have the product approved this year and released by the 2013 crop.
Algeria's Q1 grain imports down 12.7 pct y/y (Source: CME)
Algeria's wheat imports in the first quarter of this year were down 12.7 percent on the same period in 2011, customs data showed, after an easing off in social unrest and a more promising domestic harvest softened demand.
US corn planting slows; soy seeding off to record start (Source: CME)
U.S. farmers east of the Mississippi River made good planting progress, while growers in western areas of the Corn Belt were slowed by rainy weather, a U.S. Agriculture Department report showed on Monday.
The USDA's weekly crop progress and conditions report showed that U.S. corn seeding was 28 percent completed as of April 22, up from 17 percent a week ago and ahead of the five-year average of 15 percent, but down from analysts expectations.
SOFTS-Sugar, coffee steady above multi-month lows
LONDON, April 24 (Reuters) - Raw sugar futures on ICE steadied in early trading, hovering above the previous session's 11-month low, while arabica coffee also firmed, consolidating above an 18-month low hit on April 16.
Raw sugar futures consolidated, with the lower price range expected to stimulate further interest on the physical market, following recent purchases by Egypt and Tunisia.
Vietnam Coffee-New crop may rise, trade moderate
HANOI, April 24 (Reuters) - Vietnamese coffee trading has been moderate as prices held near a key level in the past week even as stock levels were good and the next harvest may show a gain over the previous period, traders and an industry official said on Tuesday.
Output from the next 2012/2013 coffee crop in Daklak, Vietnam's top growing province, is forecast to rise around 10 percent to 430,000-450,000 tonnes, or 7.2 million to 7.5 million bags, thanks to good weather, an industry official said.
India could export 3 mln tonnes sugar in 2012/13 - industry
NEW DELHI, April 24 (Reuters) - India could export 3 million tonnes of sugar in 2012/13 -- the same as approved so far this year -- with output of at least 25 million tonnes, a senior industry official said, keeping the world's second-biggest producer exporting for a third straight year.
India, which is the world's biggest consumer of sugar, returned to exports in 2010 after a severe drought in 2009 forced it to import about 2.5 million tonnes, sending global prices sharply higher.
Brazil cotton exports seen record large -producers
SAO PAULO, April 23 (Reuters) - Brazil's 2011/12 cotton exports should jump by more than half from last season to a record 1.3 million tonnes, the national producers' association said, as cooling domestic demand shifts the sector's focus to foreign markets.
Increasing demand by China was providing a new outlet for the fiber at a time when imports of synthetic fiber from their depressed demand at home, said Sergio De Marco, president of the Brazilian Cotton Producers' Association, Abrapa.
Good weather spell lifts Ivorian mid-crop cocoa hopes
ABIDJAN, April 23 (Reuters) - Adequate rains mixed with sunny spells last week in most of Ivory Coast's cocoa growing regions provided adequate growth conditions for the top producer's April to September mid-crop cocoa, farmers and analysts said on Monday.
In western, southern and eastern cocoa regions, farmers said rainfall during past week offered ideal conditions to boost the development of cocoa pods, however, continued dry conditions in the coastal regions raised some concerns.
China seen importing 3 mln T sugar in 2011/12-ISO
NEW DELHI, April 23 (Reuters) - China is likely to import 3 million tonnes of sugar in 2011/12, a top official of the International Sugar Organisation (ISO) said at a conference in India, the world's second biggest producer after Brazil.
"China will remain a big importer. They produce around 11 million tonnes but they need 14.0-14.5 million tonnes," ISO Executive Director Peter Baron told reporters.
China sandstorm hits cotton crops, small impact on output
BEIJING/SHANGHAI, April 23 (Reuters) - Cotton crops just planted in China's northwestern province of Xinjiang have been damaged by a heavy sandstorm over the past week, but there will be limited impact on this year's harvest, analysts said on Monday.
China is the world's largest producer and consumer of cotton. A fall in its domestic supply, which rose 11 percent last year to 6.6 million tonnes, could hoist imports higher and roil world prices.
India to produce surplus sugar in 2012-13, extend exports
NEW DELHI, April 23 (Reuters) - Top sugar consumer India is expected to produce enough of the sweetener in the coming 2012-2013 productions season to allow exports for the third consecutive year, the head of its sugar mill body said on Monday.
India, the world's second-largest producer of sugar after Brazil, was hit by a severe drought in 2009 and had to import about 2.5 million tonnes, sending global prices on a rally. India returned to exports in 2010/11.
Coal Seen Rebounding as China Sets Steel Output Record (Source: Bloomberg)
Coking coal prices are set to rebound as early as July from four straight quarterly declines as China and India seek raw material overseas to fire new steel production in the world’s fastest-growing major economies. Contract prices that fell to $206 a metric ton for the quarter ending June 30 may rebound to average $225 a ton this financial year, based on the mean estimate of 10 analysts, steelmakers and mining companies surveyed by Bloomberg. Contracts of coking coal, a key ingredient used to make steel, peaked at $330 in the June quarter last year. China, the largest steel producer, is leading demand growth forecast at almost 10 percent this year. It started about 10 new blast furnaces in the past six months, lifting output to a record in March, according to market researcher Custeel.com. India, the third-biggest steelmaker, is set to boost capacity a third to more than 100 million tons by March in a five-year $1 trillion plan to build roads, bridges and railway networks.
“Rising Indian imports will have a positive impact on coking coal,” said Natalie Robertson, an analyst at ANZ Banking Group Ltd. in Melbourne. “The near-term prices will more closely track development in China.” China may surpass Japan as the biggest coking coal importer by 2015, a position it may eventually relinquish to India, Robertson said.
Oil Trades Near One-Week High as U.S. Stockpiles Decline (Source: Bloomberg)
Oil traded near the highest level in a week in New York after the American Petroleum Institute said crude inventories fell in the U.S., the world’s biggest consumer of the commodity. Futures were little changed after rising 0.4 percent yesterday. U.S. stockpiles decreased by 985,000 barrels last week, the industry-funded API said. An Energy Department report today is forecast to show a gain of 2.8 million barrels. The Arabian Gulf Oil Co., Libya’s largest crude producer, warned that it may have to cease production because of protests, according to the state-run Libya News Agency. Crude for June delivery was at $103.74 a barrel, up 19 cents, in electronic trading on the New York Mercantile Exchange at 8:47 a.m. Tokyo time. The contract rose 44 cents to $103.55 yesterday, the highest close since April 17. Front-month prices are 5 percent higher this year.
Brent oil for June settlement declined 55 cents, or 0.5 percent, to $118.16 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark contract closed at a premium of $14.61 to New York futures. The spread between the contracts surged to a record $27.88 on Oct. 14.
OIL-Brent steady under $119, supply worries aid; Europe eyed
SINGAPORE, April 24 (Reuters) - Brent oil steadied near $119 a barrel on Tuesday, as a production stoppage in the North Sea and potential supply disruptions from Iran kept prices off lows hit in the previous session amid concerns about a euro zone crisis.
"The whole macro picture at the moment just doesn't look good for crude. It's looking pretty bearish," said Jim Ritterbusch, president of oil trading consultant Ritterbusch & Associates in Galena, Illinois.
China cuts Iran oil imports in March most this year
BEIJING/SEOUL, April 23 (Reuters) - China halved its Iranian crude imports in March compared with a year earlier due to disputes over contract terms, its deepest cut so far this year as Western sanctions complicate Tehran's oil exports.
South Korea cut its imports by 40 percent in March from a year earlier, official data showed, as it sought to secure an exemption from U.S. sanctions. Japan, which has secured a waiver, made steep cuts in April imports.
Iran squeezed by Asia oil import cutbacks
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
SINGAPORE, April 24 (Reuters) - Virtually every day there is news on how Iran's oil exports to Asia are being squeezed by Western sanctions, but the question that still remains unresolved is just how much pain is Tehran feeling.
The latest sign that Iran may be starting to feel the pinch is that half of the Islamic Republic's tanker fleet is being used for floating storage, presumably because buyers for cargoes can't be found.
Gold May Decline on Concern Over Slack Physical Demand (Source: Bloomberg)
Gold rose for the third time in four sessions as a weaker dollar increased the appeal of the precious metal as an alternative investment. The dollar declined as much as 0.4 percent against a basket of currencies as lower yields of Spanish and Italian bonds eased concerns that Europe’s debt crisis is worsening. The pound reached an almost six-month high against the dollar after the Debt Management Office said Britain’s net-financing requirements had fallen. “News of some stability in Europe is pushing the dollar lower,” Sterling Smith, a market analyst at Country Hedging in St. Paul, Minnesota, said in a telephone interview. “People are willing to consider riskier assets today.” Gold futures for June delivery climbed 0.7 percent to settle at $1,643.80 an ounce at 1:42 p.m. on the Comex in New York. Prices have gained 4.9 percent this year.
Mexico boosted its gold reserves by 16.8 metric tons to 122.6 tons last month, according to data on the International Monetary Fund’s website. Nations including Turkey, Russia and Kazakhstan also increased bullion holdings in March, the data show.
20120425 0954 Soy Oil & Palm Oil Related News.
SGS CPO export down 1.9% to 1,034,849 tonnes for the period of 1~25 Apr 2012.
ITS CPO export down 2.9% to 1,037,083 tonnes for the period of 1~25 Apr 2012.
Palm oil weighed by euro zone woes; exports eyed (Source: CME)
Malaysian palm oil futures extended losses, as investors feared that the euro zone debt woes could hurt global growth, although losses were limited by a healthy demand outlook for the edible oil on the back of lower soybean supply. "I think the main reason the market's down is the Europe economic situation. The Dow Jones Indices also dropped about 100 points, and that should affect the overall sentiment," said Alan Lim, research analyst with Malaysia's Kenanga Investment Bank.
VEGOILS-Palm oil weighed by euro zone woes; exports eyed
SINGAPORE, April 24 (Reuters) - Malaysian palm oil futures extended losses, as investors feared that the euro zone debt woes could hurt global growth, although losses were limited by a healthy demand outlook for the edible oil on the back of lower soybean supply.
"I think the main reason the market's down is the Europe economic situation. The Dow Jones Indices also dropped about 100 points, and that should affect the overall sentiment," said Alan Lim, research analyst with Malaysia's Kenanga Investment Bank.
Brazil's April soy exports seen topping March's
SAO PAULO, April 23 (Reuters) - Brazil's soybean exports are likely to climb in April from March, with harvesting of the oilseed in the world's No. 2 grower now nearing completion, according to port shipping schedules and comments from analysts.
Exports are likely to reach around 5 million tonnes this month, an increase of about 1 million tonnes over March, according to the shipping line-up detailing quantities of soy vessels will load. That is roughly the same as in April 2011.
Market Recap: Soybean Futures (Source: CME)
Soybean futures settled in the upper region of today’s trading range with May through August futures 24 cents higher, September up 17 cents and new-crop futures 7 to 9 1/4 cents higher. Traders viewed yesterday’s price break as a bargain buying opportunity today as euro-zone concerns quieted and the dollar softened. Also helping to propel bean’s run higher was concern about a frost/freeze event in Argentina, which could further diminish the region’s soybean crop.
Soybean Complex Market Recap (Source: CME)
July Soybeans finished up 24 at 1465, 6 1/4 off the high and 27 1/4 up from the low. November Soybeans closed up 10 1/2 at 1352. This was 12 up from the low and 4 off the high. July Soymeal closed up 12.3 at 415.7. This was 12.3 up from the low and 1.2 off the high. July Soybean Oil finished up 0.2 at 55.69, 0.26 off the high and 0.15 up from the low. July soybeans closed sharply higher on the session and managed to push to a new contract high. July soybeans are now up as much as 61 3/4 cents from last week's lows. More talk of a smaller South America crop due to lower production estimates from key forecasters and concerns that Argentina could slow the crush pace ahead helped support strong gains in soybeans and meal early in the session today. News of potential frost damage to the Buenos Aires region in Argentina last night with lows down to 26 degrees added to the positive tone. Talk that meal offers from Argentina for August and beyond are difficult to come by helped to support. May meal surged higher and led the rally in the complex with nearby meal pushing to the highest level since July of 2009. Stats Canada pegged canola planted area at 20.4 million acres which was slightly below trade expectations but up 8% from last year. Late weakness in the other grain helped pull the market off of the highs into the close.
Brazil gov't says not halting or slowing soy exports (Source: CME)
Brazil's government has no plans to either halt or slow exports of soy, its single most valuable agricultural export, the agriculture ministry said on Friday after such rumors sent Chicago soybean futures to a 7-1/2 month high.
Brazil's April soy exports seen topping March's (Source: CME)
Brazil's soybean exports are likely to climb in April from March, with harvesting of the oilseed in the world's No. 2 grower now nearing completion, according to port shipping schedules and comments from analysts.
Exports are likely to reach around 5 million tonnes this month, an increase of about 1 million tonnes over March, according to the shipping line-up detailing quantities of soy vessels will load. That is roughly the same as in April 2011.
ITS CPO export down 2.9% to 1,037,083 tonnes for the period of 1~25 Apr 2012.
Palm oil weighed by euro zone woes; exports eyed (Source: CME)
Malaysian palm oil futures extended losses, as investors feared that the euro zone debt woes could hurt global growth, although losses were limited by a healthy demand outlook for the edible oil on the back of lower soybean supply. "I think the main reason the market's down is the Europe economic situation. The Dow Jones Indices also dropped about 100 points, and that should affect the overall sentiment," said Alan Lim, research analyst with Malaysia's Kenanga Investment Bank.
VEGOILS-Palm oil weighed by euro zone woes; exports eyed
SINGAPORE, April 24 (Reuters) - Malaysian palm oil futures extended losses, as investors feared that the euro zone debt woes could hurt global growth, although losses were limited by a healthy demand outlook for the edible oil on the back of lower soybean supply.
"I think the main reason the market's down is the Europe economic situation. The Dow Jones Indices also dropped about 100 points, and that should affect the overall sentiment," said Alan Lim, research analyst with Malaysia's Kenanga Investment Bank.
Brazil's April soy exports seen topping March's
SAO PAULO, April 23 (Reuters) - Brazil's soybean exports are likely to climb in April from March, with harvesting of the oilseed in the world's No. 2 grower now nearing completion, according to port shipping schedules and comments from analysts.
Exports are likely to reach around 5 million tonnes this month, an increase of about 1 million tonnes over March, according to the shipping line-up detailing quantities of soy vessels will load. That is roughly the same as in April 2011.
Market Recap: Soybean Futures (Source: CME)
Soybean futures settled in the upper region of today’s trading range with May through August futures 24 cents higher, September up 17 cents and new-crop futures 7 to 9 1/4 cents higher. Traders viewed yesterday’s price break as a bargain buying opportunity today as euro-zone concerns quieted and the dollar softened. Also helping to propel bean’s run higher was concern about a frost/freeze event in Argentina, which could further diminish the region’s soybean crop.
Soybean Complex Market Recap (Source: CME)
July Soybeans finished up 24 at 1465, 6 1/4 off the high and 27 1/4 up from the low. November Soybeans closed up 10 1/2 at 1352. This was 12 up from the low and 4 off the high. July Soymeal closed up 12.3 at 415.7. This was 12.3 up from the low and 1.2 off the high. July Soybean Oil finished up 0.2 at 55.69, 0.26 off the high and 0.15 up from the low. July soybeans closed sharply higher on the session and managed to push to a new contract high. July soybeans are now up as much as 61 3/4 cents from last week's lows. More talk of a smaller South America crop due to lower production estimates from key forecasters and concerns that Argentina could slow the crush pace ahead helped support strong gains in soybeans and meal early in the session today. News of potential frost damage to the Buenos Aires region in Argentina last night with lows down to 26 degrees added to the positive tone. Talk that meal offers from Argentina for August and beyond are difficult to come by helped to support. May meal surged higher and led the rally in the complex with nearby meal pushing to the highest level since July of 2009. Stats Canada pegged canola planted area at 20.4 million acres which was slightly below trade expectations but up 8% from last year. Late weakness in the other grain helped pull the market off of the highs into the close.
Brazil gov't says not halting or slowing soy exports (Source: CME)
Brazil's government has no plans to either halt or slow exports of soy, its single most valuable agricultural export, the agriculture ministry said on Friday after such rumors sent Chicago soybean futures to a 7-1/2 month high.
Brazil's April soy exports seen topping March's (Source: CME)
Brazil's soybean exports are likely to climb in April from March, with harvesting of the oilseed in the world's No. 2 grower now nearing completion, according to port shipping schedules and comments from analysts.
Exports are likely to reach around 5 million tonnes this month, an increase of about 1 million tonnes over March, according to the shipping line-up detailing quantities of soy vessels will load. That is roughly the same as in April 2011.
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