Asian shares rose while Europe looked set to open higher on Tuesday as a recent raft of weak U.S. and European macro data raised investors' expectation that central banks will soon take fresh policy action to kick-start their economies. U.S. stocks edged higher on Monday, shaking off a surprise contraction in U.S. manufacturing, which some investors interpreted as a signal the Federal Reserve will take more forceful actions to boost the economy.
GLOBAL MARKETS-Shares inch up as weak factory data boost Fed hopes
TOKYO, July 3 (Reuters) - Asian shares inched up as manufacturing data around the world highlighted the drag on growth from the protracted euro zone debt crisis, raising expectations for the Federal Reserve to take further steps to underpin the fragile economy.
"The pressure to do something will grow on the Fed. For now, the market is digesting the hit, but hopes of a sustained rally may be too early with some of the negative news regarding the global business cycle yet to be priced in," said Sebastian Galy, strategist at Societe General.
The euro and U.S. dollar climbed off early lows but remained under pressure after dismal factory data from Europe to the United States raised expectations for more action from central banks in both regions.
FOREX-Euro, USD slip on weak U.S. data; Aussie awaits RBA
TOKYO, July 3 (Reuters) - The euro and U.S. dollar slipped on Tuesday after dismal data from Europe to the United States raised expectations for more action from central banks in both regions.
Investor hopes for the European Union's plan to support debt-laden countries turned to scepticism, which was further fanned by Monday's report showing U.S. manufacturing contracted for the first time in nearly three years.
VEGOILS-Palm hits 1-mth top on US weather woes, Ramadan demand
SINGAPORE, July 2 (Reuters) - Malaysian crude palm oil futures rose to a one-month high driven by a stronger demand outlook for palm oil as a worsening U.S. drought could further tighten global oilseed supplies.
"Palm oil is up in line with the higher external markets on Friday thanks to the European summit. The persistent hot and dry weather in the U.S. also pushed prices up," said a trader with a foreign commodities brokerage in Malaysia.
Coffee exports from Honduras, Costa Rica rise in June
Coffee exports from Honduras, Central America's top producer, nearly doubled in June compared with the same month a year ago, reaching 788,129 60-kg bags for the month.
USDA slashes US corn, soybean condition ratings
Extreme hot and dry weather has taken a toll on the U.S. corn and soybean crops with the U.S. Department of Agriculture (USDA) on Monday slashing its condition rating for U.S. corn to 48 percent good-to-excellent, down 8 percentage points from a week earlier.
Ivorian rains boost 2012/13 main crop, sun needed
More sun is needed to strengthen the development of Ivory Coast's 2012/13 main cocoa crop, which was helped by abundant rainfall last week in most regions, farmers and analysts said on Monday.
IGC cuts 2012/13 wheat crop outlook, raises maize
The International Grains Council on Monday cut its forecast for global wheat production in 2012/13 as the outlook for the crop in key exporter Russia deteriorated.
Ukraine boosts grain exports 83 pct in 11/12
Ukraine, which harvested a record 56.7 million tonnes of grain in 2011, raised its exports to 22.5 million tonnes in the 2011/12 July-June season from 12.3 million tonnes in 2010/11, Ukrainian Agrarian Confederation grain lobby said on Monday.
India's 2012/13 sugar output seen at 25 mln T-industry
India may produce 25 million tonnes of sugar in the next marketing year starting Oct. 1, the main producers' body said on Monday, down by 1 million tonnes from the likely output in the year to September.
COMMODITIES-Oil, metals down on cautious Q3 start; grains surge
NEW YORK, July 2 (Reuters) - Commodities began the third quarter on a mixed note on Monday, with energy and metals prices closing down on economic concerns while agricultural markets extended their rally on worries about U.S. crop weather.
"After all the excitement on Friday, and the improvement in technicals, we are still rangebound and are still in the same broad range that we've been in since the beginning of May," said Stanley Dash, a technical analyst at TradeStation who watches the gold market.
Chicago corn rose to a 10-month top, stretching gains into a third straight session, while soybeans surged to their highest in almost four years as a U.S. report cut crop condition ratings in a fresh blow to world corn and soy supplies.
US corn jumps to 9-1/2 month top, soy hits contract high
SYDNEY/SINGAPORE, July 2 (Reuters) - Chicago new-crop corn jumped more than 3 percent to its highest since early September, with a worsening U.S. drought hurting the crop in its crucial pollination phase, while soybeans hit a contract high.
"Hot, dry weather across the U.S. and the declining yield potential is driving the increase in corn today," said Luke Mathews, a commodities strategist at the Commonwealth Bank of Australia. "Wheat is being dragged along by the strength in corn, like soybeans too."
Little wetter for northwest Midwest next week
CHICAGO, June 29 (Reuters) - Midday weather updates indicate a little more rain for next week in the northwest U.S. Midwest crop region than earlier outlooks indicated but forecasts for the following week were drier than previous forecasts, an agricultural meteorologist said on Friday.
"Midday updates showed a little wetter in the six- to 10-day for northwest areas such as Iowa and southern Minnesota but the 11- to 15-day was notably drier but also cooler (11-15 day)," said Steve Silver, meteorologist for MDA EarthSat Weather.
Ukraine 2012 barley harvest seen at 6 mln T
KIEV, July 2 (Reuters) - Ukraine, one of the world's leading barley exporters, is likely to harvest 6 million tonnes of barley this year, down from 9 million in 2011, Mykola Kulbida, the head of state weather forecasting centre, said on Monday.
"The harvest of spring barley is likely to total 5 million tonnes and winter barley gives us an additional one million tonnes," he told reporters.
Indonesia sees 2012 rice output up 4 pct on better weather
JAKARTA, July 2 (Reuters) - Indonesia's unmilled rice production is forecast to rise 4.3 percent this year on improved weather conditions, the statistics bureau said on Monday, slightly ahead of a government estimate in May and potentially helping to curb the need for imports.
Rice production in Southeast Asia's largest economy is seen at 68.59 million tonnes in 2012, versus 65.76 million last year, statistics bureau chief Suryamin said.
ICE sugar rises, coffee at one-month high
LONDON, July 2 (Reuters) - Sugar futures on ICE firmed underpinned by news that speculators had raised their net long position, while coffee touched a one-month high, buoyed by concerns over the impact of rains in Brazil on the crop.
Cocoa futures were little changed, supported by a slow start to the mid crop in West Africa, the world's top cocoa growing region.
Indonesia's June Sumatra coffee bean exports fall 18 pct
BANDAR LAMPUNG, Indonesia, July 2 (Reuters) - Robusta coffee bean exports in June from Indonesia's main growing area in Sumatra slipped 18 percent from a year earlier, government trade data showed on Monday, as wet weather hindered output ahead of the main harvest period next month.
Indonesia shipped 14,718.7 tonnes of robusta in June, versus 17,905.76 tonnes a year earlier, while last month's shipments rose 57 percent from May's export number of 9,355.3 tonnes.
Ivorian cocoa arrivals seen at 1,238,000 T by July 1.
ABIDJAN, July 2 (Reuters) - Cocoa arrivals at ports in top grower Ivory Coast reached around 1,238,000 tonnes by July 1, exporters estimated on Monday, compared with 1,285,716 tonnes in the same period of the previous season.
Exporters estimated around 19,000 tonnes of beans were delivered to the West African state's two ports of Abidjan and San Pedro between June 25 to July 1, down from 24,217 tonnes in the same week a year ago.
OIL-Oil slips on more signs of slowing economy
NEW YORK, July 2 (Reuters) - Oil prices edged lower on Monday as weak manufacturing data from the United States, Europe and China reinforced concerns about slowing economic growth and its threat to demand for petroleum.
"The market is jittery, with U.S. crude falling to (an initial intraday) low after the ISM data (U.S. factory activity)
added to the concerns about manufacturing slowing down, but the news from Iran showed how much uncertainty there is about that situation," said Gene McGillian, an analyst at Tradition Energy in Stamford, Connecticut.
Brent crude climbed above $98 per barrel as escalating tensions between Iran and the West offset concerns that gloomy manufacturing data from China, the United States and Europe will hurt oil demand.
POLL-US crude stocks seen falling on storm outages
July 2 (Reuters) - U.S. commercial crude oil stockpiles were forecast to have fallen last week on production cuts in the Gulf of Mexico because of Tropical Storm Debby, a preliminary Reuters poll showed on Monday.
The survey of six analysts, ahead of weekly inventory reports from industry group American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA), forecast on average that crude stocks would drop 2.2 million barrels for the week ended June 29.
Russia's H1 oil output up despite June slip
Top oil producer Russia is on course for its highest output in the post-Soviet era this year helped by new fields after a 1.1 percent rise in the first half, Energy Ministry data showed on Monday.
NATURAL GAS-US gas futures end flat despite more heat
NEW YORK, July 2 (Reuters) - U.S. natural gas futures trimmed early losses to end flat on Monday, with prices hovering near a key technical level but well under last week's 5-1/2-month spot chart high.
The Schork Group's Stephen Schork noted bulls have "run into resistance around the 200-day moving average" near $2.83 per million British thermal units.
Euro Coal-S.African rebounds above $90/T FOB
LONDON, June 29 (Reuters) - Prompt South African FOB physical coal prices continued the rally begun last week to trade at $90.00 a tonne FOB Richards Bay on Friday, over $10.00 higher than prices seen a few weeks ago amid the panic over widespread Chinese cargo defaults.
"The market does seem to have bottomed-out - for now - $90 is the number for Richards Bay and DES," one trader said.
Iron Ore-Shanghai rebar hits 1-month low, ore extends fall
SINGAPORE, July 2 (Reuters) - China steel futures touched one-month lows, reflecting a sluggish market that has cut the appetite for raw material iron ore and prompted mills in the world's top steel producer to curb output.
"We haven't bought anything over the last week and probably we'll only consider buying if the 62-percent grade falls to around $130," said a Shanghai-based trader.
EU steel industry in terminal decline - sector chief
BRUSSELS, June 28 (Reuters) - The European Union's steel industry may need to shut three quarters of its capacity in the next two decades because of declining demand, rising costs and cheap imports, a European sector chief said on Thursday.
"It is foreseeable in the next 10, 15, 20 years, at least for normal grade steel, that production in Europe will not be competitive any more," Wolfgang Eder, president of European steel industry body EUROFER told Reuters in an interview.
Iron ore developers turn to unconventional backers
LONDON, June 28 (Reuters) - Iron ore mine developers are turning to unconventional finance providers as many banks withdraw support on likely medium-term price weakness, according to an executive at Sweden-based Nordic Iron Ore.
Benchmark iron ore rose to almost $200 per tonne in early 2011, supported by tight supply and booming demand in top consumer China.
Copper surged as hopes of further monetary easing by major central banks helped offset worries stoked by grim macroeconomic data and nagging concerns over the festering debt crisis in Europe.
Gold edged higher, after weak manufacturing data across the globe rekindled hopes for more easing from central banks to support recovery.
METALS-LME copper hit 6-wk high on stimulus hopes
SHANGHAI, July 3 (Reuters) - Copper surged on Tuesday as hopes of further monetary easing by major central banks helped offset worries stoked by grim macroeconomic data and nagging concerns over the festering debt crisis in Europe.
A surprise rise in China's services sector Purchasing Managers' Index (PMI), which snapped two months of decline to expand at its fastest pace in three months in June, also buoyed market sentiment and boosted prices.
PRECIOUS-Gold gains, easing eyed after bleak data
SINGAPORE, July 3 (Reuters) - Gold edged higher on Tuesday, after weak manufacturing data across the globe rekindled hopes for more easing from central banks to support recovery.
Gold thrives on abundant money supply and low interest rates, which increases inflation outlook and benefits bullion which is seen as a hedge against rising prices.
Baltic index up on panamax, capesize rates
June 29 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, rose on Friday, buoyed by higher panamax and capesize vessel rates.
"Steady enquiry in the Atlantic basin created some optimism in the market, however rates remain unchanged despite this," ship broker Braemar Seascope Ltd said in its weekly report.
