Chart reading : pullback correction range bound downside biased.
Chart reading : pullback correction range bound downside biased.
Chart reading : pullback correction range bound downside biased.
Chart reading : downside biased with potential pullback correction.
U.S. corn, wheat extend rally on exports, oil
SINGAPORE, March 18 (Reuters) - U.S. wheat and corn futures rose more than 3 percent on Friday, adding to the previous session's biggest one day gains in five months, as strong weekly exports and talk of Chinese purchases propelled grains higher.
"U.S. exports sale numbers were very bullish," said Ker Chung Yang, investment analyst at Phillip Futures in Singapore. "We are seeing Asian equity markets are doing quite well at the moment."
Argentine soy outlook steady, corn harvest slow
BUENOS AIRES, March 17 (Reuters) - Rains in Argentine soy areas relieved crops over the last week, but persistent dryness means output is not expected to exceed 48.8 million tonnes, the Buenos Aires Grains Exchange said on Thursday.
Argentina, the world's third-biggest soy supplier, had dry weather earlier this season, but heavy rains from mid-January onward brightened the outlook for the oilseed. Parched conditions have returned over the last two weeks.
Gold extends gains on equities, Mideast in focus
SINGAPORE, March 18 (Reuters) - Gold rose more than half a percent on Friday after equities markets regained strength and crude oil firmed on rising tensions in the Middle East and North Africa, but Japan's nuclear crisis could cap gains.
Investors shifted their attention to Libya after the United Nations authorised military strikes to curb leader Muammar Gaddafi, while a deadly unrest in Bahrain could stir up interest in bullion which has lost more than 2 percent since striking a record.
Stocks rise but uncertainty still looms
NEW YORK, March 17 (Reuters) - European and U.S. stocks rebounded from three days of selling on Thursday despite no resolution to Japan's nuclear plant crisis, while the yen edged off a record high against the U.S. dollar.
Despite the rise in stocks, fear still clouded markets across the globe as Japan's responses to its worsening nuclear disaster looked increasingly desperate. New issues in the stock and loans markets were postponed and equity trading volumes dipped.
Oil : Brent crude rises more than a dollar on Mideast tensions
SINGAPORE, March 18 (Reuters) - ICE Brent crude rose more than a dollar on Friday on fears of further escalation of geopolitical tension in the Middle East and North Africa.
Brent crude for May climbed to an intraday high of $116.50, up $1.60.
The United Nations authorised military strikes to curb Libyan leader Muammar Gaddafi on Thursday, hours after he threatened to storm the rebel bastion of Benghazi overnight, showing "no mercy, no pity".
COMMODITIES: Roar back as Japan fears recede, oil up on MidEast
NEW YORK, March 17 (Reuters) - Commodities roared back on Thursday as fears over the impact of the nuclear crisis in Japan receded and as unrest in the Middle East boosted oil, setting a key index on course for its largest daily gain in 19 months.
"The risk aversion is not as it was. There is this assumption that conditions will revert back to normal reasonably quickly," Deutsche Bank analyst Daniel Brebner said.
GLOBAL MARKETS: Stocks rise but uncertainty still looms
NEW YORK, March 17 (Reuters) - European and U.S. stocks rebounded from three days of selling on Thursday despite no resolution to Japan's nuclear plant crisis, while the yen edged off a record high against the U.S. dollar.
Despite the rise in stocks, fear still clouded markets across the globe as Japan's responses to its worsening nuclear disaster looked increasingly desperate. New issues in the stock and loans markets were postponed and equity trading volumes dipped.
G-7 Sells Yen in First Joint Intervention in More Than Decade (Bloomberg)
The Group of Seven will jointly intervene in the foreign exchange market for the first time in more than a decade after Japan’s currency soared, threatening its recovery from the March 11 earthquake.
Yen Drops as G-7 Agrees to Intervene in Foreign-Exchange Markets (Bloomberg)
The yen slid, halting a five-day rally to a postwar record against the dollar, as Group of Seven nations said they will jointly intervene in foreign-exchange markets for the first time in more than a decade.
Crude Oil Climbs for a Third Day on Concern Middle East Unrest May Spread (Bloomberg)
Oil surged in New York after the United Nations Security Council voted to ground Libyan leader Muammar Qaddafi ’s air force as continuing unrest in the region renewed concerns that the turmoil may spread and disrupt supply.
Japanese Stocks ‘Look Cheap’ After Plunge, Societe Generale’s Grice Says (Bloomberg)
Japan stocks are beginning to “look cheap” after plunging following the biggest earthquake on record for that nation, Dylan Grice, Societe Generale’s global strategist said in a report.
Japanese Stocks in U.S., Australian Shares Advance on Easing Concern, Oil (Bloomberg)
Japanese stocks traded in the U.S. rose as concern eased about nuclear radiation and the effects of last week’s earthquake, and on speculation the government will act to weaken the yen. Australian shares advanced.
Yen hits record high; stocks stabilise
LONDON, March 17 (Reuters) - The yen briefly hit record highs versus the dollar as quake-hit Japan's nuclear crisis unleashed a global risk sell-off, while world stocks ticked higher after Tokyo stocks came off earlier lows.
"Some slightly more positive news from Japan over attempts to avert a full-blown nuclear catastrophe has helped add a degree of stability to shares during the Asian session, but the situation is still very much hanging in the balance," Peter Stanhope, Institutional trader at IG Markets, said.
Corn, wheat rise 1.5 pct after selloff, soy extends gains
SINGAPORE, March 17 (Reuters) - U.S. corn and wheat futures rose around 1.5 percent on bargain hunting after a selloff this week triggered by Japan's devastating earthquake, which raised doubts over the nation's grain imports. "The grain markets are volatile because Japan is a major corn importer and we are not sure about the nuclear situation," said Ker Chung Yang, investment analyst at Phillip Futures in Singapore.
Corn (Source: CME)
US corn futures close up the daily 30c limit as commodity markets rebounded on growing confidence in Japan's ability to recover. Prior to Thursday's rally, corn futures had pulled back 14% from a 32-month high reached March 4 on concerns about tight supplies. Japan's troubles contributed to worries about a potential global economic slowdown and reduced demand for agricultural commodities. Futures felt additional support today from an export sale to unknown destinations, which sparked chatter that China may have entered the market, traders say. CBOT May corn surges 4.9% to $6.46 1/2 a bushel.
Wheat (Source: CME)
US wheat futures finish sharply higher in a rebound from losses fueled by growing optimism about Japan's recovery. Futures had tumbled recently as Japan's troubles added to concerns about a global economic slowdown and reduced demand for commodities. "As long as things are not getting worse, that's a good sign," says Dax Wedemeyer, analyst at US Commodities. Solid weekly export sales and a limit-up rally in corn helped boost wheat. CBOT May jumps 48 1/4c to $7.10 1/4 a bushel, KCBT May climbs 52 3/4c to $8.31 and MGE May wheat jumps 48 3/4c to $8.54 3/4.
Oats (Source: CME)
Oat futures rallied the daily, 20-cent limit as grain markets surged on growing optimism about Japan's recovery. Oats for May delivery gained 20 cents, or 6.3%, to $3.35 a bushel.
IMF Staff: Higher Global Food Prices Here To Stay (Source: CME)
Higher food prices are likely here to stay and the rising costs are likely to impact core inflation for poorer nations, International Monetary Fund staff warned in a report. "The world may need to get used to higher food prices," research department staff Thomas Helbling and Shaun Roache wrote in a new IMF article. "Policymakers--particularly in emerging and developing economies--will likely have to continue confronting the challenges posed by food prices that are both higher and more volatile than the world has been used to," they said. Poor weather amid strong demand has been the primary driver of a spike in food prices, with the IMF's Food Price Index approaching a historic peak seen in 2008. Given that food and energy prices are often volatile, they are generally excluded from core inflation calculations and given less notice by monetary policy-makers. "Nevertheless, the main reasons for rising demand for food reflect structural changes in the global economy that will not be reversed," the two said.
Helbling and Roache say that since a much larger share of income in emerging and developing nations is spent on feeding families, "food price spikes are more likely to unhinge inflation expectations and trigger increases in wage demands," even though international prices may stabilize. That's why the IMF has traditionally advised countries to accommodate the first-round direct effects of rising commodity prices on inflation, but to be prepared to tighten monetary policy to avoid second-round impacts, the staff said. Over time, the IMF staff said the growth in supply can be expected to respond to higher prices, easing pressures on food markets, "but this will take time counted in years rather than months." Production costs, including for energy, water and land, are likely to climb as there's increasing scarcity, even though technology and higher-yield growth could compensate for such limitations, Helbling and Roache said.
Also, the IMF staff said perhaps one of the most important explanations for the trending increase in food prices is that consumers in emerging and developing economies are becoming richer and changing their diets as a result. "In particular, consumers in these economies are eating more high-protein foods such as meat, dairy products, edible oils, fruits and vegetables, and seafood," they said.
NOAA Sees Above-Average Flood Risk In Half US (Source: CME)
Nearly half the continental U.S. has an above-average risk of flooding over the next few weeks as heavy snow melts, the National Oceanic Atmospheric Administration warned. Spring flooding is already underway in some areas, raising concerns about property damage and threats to crops ahead of a key planting season. The highest-risk areas include the Red River, which forms the state line between eastern North Dakota and northwest Minnesota; the Minnesota River; and the upper Mississippi River basin from Minneapolis southward to St. Louis, according to NOAA. "For the third consecutive year, the stage is set for potential widespread, record flooding in the north-central United States," said Jack Hayes, director of NOAA's National Weather Service. Warm temperatures should accelerate flooding in the northern Plains this week, causing much of the snowpack to melt across South Dakota and southern Minnesota, according to NOAA.
That may set off "moderate to major flooding" in eastern South Dakota next week, the agency said in a spring weather outlook. Troubles may persist through next month after minor flooding starts this week on the Mississippi River and its tributaries over southeastern Minnesota and southwestern Wisconsin, NOAA said. More precipitation may exacerbate the problem. A series of storm systems is forecast to move across the northern Plains during the next two weeks, eventually leading to major flooding sometime from the last week of March through early April, NOAA said. The U.S. is at a particularly high risk for flooding this year because heavy, late-summer and fall precipitation left soils saturated and streams running high before the winter freeze. Stable to below-freezing temperatures during the winter prevented heavy snowfall from melting. "All the ingredients are in place for major flooding," Hayes said.
Farmers in the upper Midwest and northern Plains are worried excessive wetness will delay planting of key crops like wheat and corn this spring. Delayed planting can eventually reduce the size of the harvests because it forces crops to develop during the height of summer heat. Users of grain, including livestock producers and foreign buyers, are concerned about the risk of planting problems because large harvests are needed to replenish tight supplies. Corn inventories, in particular, need a boost as they are expected to reach a 15-year low by the end of the crop's marketing year on Aug. 31. However, it's unclear whether wetness will delay planting in Iowa, the country's top corn-producing state, said Edward O'Lenic, a NOAA meteorologist and chief of the operations branch. Soils in the state have roughly average moisture content -- "not real wet and not real dry," he said. "The issue with corn is getting it in the ground. Corn is a rather delicate crop," O'Lenic said.
The weather phenomenon La Nina wreaked havoc on crops around the world last year, helping to send gain prices above two-year highs. La Nina has peaked, will be moderately strong in April and significantly weakened by June, O'Lenic said. Meteorologists said it's too soon to predict summertime threats from hurricanes in the U.S. or whether spring flooding will impede barge traffic on the Mississippi River. A portion of the river from northeastern Missouri to Minnesota does not open to barges until early April, and the river can carry "a certain amount" of traffic even during a flood, hydrologist Scott Dummer said.
China NDRC Warns Against Salt Hoarding To Stabilize Prices (Source: CME)
China's top economic planning agency warned against hoarding and speculation in table salt, saying the country has ample salt stocks. A statement posted by the National Development & Reform Commission on its website came after retailers reported panic buying of salt in China, which appeared to be linked to consumers believing it could ward off potential radioactivity from Japan's crippled nuclear power plant. The commission said it was responding to "rumors," but didn't refer to the Japanese disaster anywhere in its notice. It blamed "unscrupulous dealers" for "price manipulation" of the common household good, and called on local pricing authorities to carry out price inspections to ensure stable markets. "Supply is absolutely guaranteed," it said. Salt sold in China is mostly iodized as part of a national policy to prevent iodine deficiency disorders. Chinese people are now hoping iodine can reduce the impact of possible radioactivity as the crisis at Japan's Fukushima nuclear plant deepens.
"We hope consumers won't believe rumors and won't spread them," the NDRC said. China National Salt Industry Corp., the nation's largest salt supplier, also said Thursday that it will expand production and improve distribution to ensure salt supply.
US inflation pressure bubbles, home building dives
WASHINGTON, March 16 (Reuters) - U.S. producer prices surged in February at their fastest pace in 1-1/2 years, data showed on Wednesday, a day after the Federal Reserve said it had a watchful eye on inflation pressures it expects to subside.
In another reminder on Wednesday of headwinds facing the economy, the government said groundbreaking for new homes posted the biggest drop in 27 years in February and permits for future building reached a record low.
U.S. January brass mill imports, exports up from year ago
NEW YORK, March 16 (Reuters) - U.S. imports of brass mill products increased by 0.4 percent in the first month of the year from the corresponding 2010 period, and exports climbed 2.9 percent, an industry group said late Tuesday.
Imports of all brass mill products into the United States in January grew to 37,088,491 lbs from 36,948,510 lbs in the year-ago period, the Copper and Brass Fabricators Council said in its monthly report.
PRECIOUS-Physical, ETF demand sustain gold
LONDON, March 17 (Reuters) - Gold rose on thursday, sustained by an increase in ETF holdings, stronger physical demand and a weaker dollar, but investor selling to cover losses in other markets limited gains.
"With gold dropping below $1,400 we continue to see good demand in the physical market. At levels above $1,430 we see scrap coming to the market," said Walter de Wet, analyst at Standard Bank. "There's been consistent liquidation ... since last week, following the earthquake."
FOREX-Market on intervention watch, yen near record high
NEW YORK, March 17 (Reuters) - The yen traded near a record high against the U.S. dollar on Thursday, hovering around levels that traders fear could trigger action by the Japan to weaken the currency through direct market intervention.
"We're in unchartered territory at these levels. We lack technical indicators, which makes it hard to establish levels (at which to go long dollars)," said C.J. Gavsie, director of FX sales at BMO Capital Markets in Toronto.
