BRAZIL CS 11/12 CANE SEEN UP AT 585 MLN T-LANWORTH
SAO PAULO, April 26 (Reuters) - Brazil's center-south should crush 585 million tonnes of sugar cane in 2011/12, up from 574 million seen in February, U.S. crop forecaster Lanworth Inc said on Tuesday, adding that the revision was due to an increase in soil moisture.
The numbers are at the center of forecast ranges that stretch from 33 million additional tonnes to 33 million fewer tonnes of cane.
EPA STANDS BY BIOFUELS DESPITE HIGH CORN PRICES
WASHINGTON, April 26 (Reuters) - The U.S. Environmental Protection Agency does not plan to change its biofuel mandate despite corn prices that have risen to record levels, said Lisa Jackson, its administrator, on Tuesday.
About 40 percent of the U.S. corn crop is used to make ethanol, and the biofuel is often targeted by critics who say fuel use is driving up food and livestock feed costs.
ADM TO TAKE FULL OWNERSHIP OF BRAZIL ETHANOL PLANT
SAO PAULO, April 26 (Reuters) - U.S. agricultural company Archer Daniels Midland said Tuesday it agreed to buy the remaining 51 percent stake in Brazil's Limeira do Oeste ethanol mill, making it the plant's sole owner.
The value of the purchase will be determined by an arbitration proceeding being carried out between ADM and a local group called Canaa Participacoes that owns the 51 percent stake, an ADM spokeswoman said.
ITALY'S NOVAOL STARTS UP 198,000 T BIODIESEL PLANT
MILAN, April 22 (Reuters) - Novaol, a leading Italian biodiesel maker, has started up a new 198,000 tonne plant in northern Italy, betting on a pick-up in biofuel production in the country, the company said on Friday.
The new plant in the Ravenna province near the Adriatic Sea will also produce 30,000 tonnes of glycerin for pharmaceutical use, the company controlled by French oilseed giant Sofiproteol said in a statement.
US ETHANOL OUTPUT HITS 7-MTH LOW AMID HIGH CORN PRICES
KANSAS CITY, April 20 (Reuters) - U.S. ethanol production fell for the fourth consecutive week, the government said on Wednesday, dropping to the lowest in nearly seven months as high corn prices squeezed margins.
The slowdown comes as market players keep a close eye on competing factors that include strong export demand, signs of slipping domestic demand and tightening supplies of key ingredient corn.
PHYSICAL SUGAR-BRAZIL CANE MILLS MAXIMISE ETHANOL CRUSH
LONDON/SAO PAULO, April 20 (Reuters) - Brazilian cane mills are churning out ethanol to try to keep up with soaring demand, but dealers see ample sugar supplies in the pipeline despite a below-consensus cane forecast from analyst Canaplan.
With sugar prices a third below their three-decade highs, sugar price risk is to the downside due to plentiful supply prospects from Brazil and Thailand, auguring well for physical offtake, dealers said.
Thursday, April 28, 2011
20110428 0940 Global Market Related News.
DJIA chart reading : upside biased with possible pullback correction.
Hang Seng chart reading : correction range bound little upside biased.
Asian Stocks Rise as Federal Reserve Renews Pledge on Low Interest Rates (Source: Bloomberg)
Asian stocks rose, sending the regional benchmark index to an almost two-month high, after the U.S. Federal Reserve renewed its pledge to stimulate growth in the world’s biggest economy with low interest rates. The MSCI Asia Pacific Index gained 0.8 percent to 138.97 as of 9:08 a.m. in Tokyo, heading for its highest close since March 4.
Fed Says Pace of U.S. Recovery Is ‘Moderate,’ Bond Buying Will End in June (Source: Bloomberg)
Federal Reserve policy makers said the economy is recovering at a “moderate pace” and a pickup in inflation is likely to be temporary, as they agreed to finish $600 billion of bond purchases on schedule in June.
Bernanke Says Fed to Keep Stimulus, Further Easing Unlikely (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke signaled the Fed will maintain its record monetary stimulus after ending large-scale bond purchases in June, while the need to contain inflation means further easing is unlikely.
UPS Gain in Overnight Deliveries Shows U.S. Economic Confidence (Source: Bloomberg)
Gains in overnight shipments at United Parcel Service Inc. (UPS) and FedEx Corp. (FDX), the two largest package-delivery companies, show consumers and businesses are willing to pay for faster deliveries as the economy expands. Average daily volume for UPS’s next-day air packages “grew at a mid-single digit rate,” overshadowing a drop in ground delivery for the quarter ended March 31 from a year earlier, data from the Atlanta-based company showed yesterday. Such growth in premium overnight air packages is a sign of economic confidence, according to Chief Financial Officer Kurt Kuehn.
U.S. Durable-Goods Orders Rise for Third Month as Equipment Is Replenished (Source: Bloomberg)
Demand for U.S. durable goods rose in March for a third consecutive month, indicating business investment will pick up. Bookings for equipment meant to last at least three years climbed 2.5 percent after a 0.7 percent gain the prior month that reversed a previously reported drop, the Commerce Department said today in Washington. The increase reflected growing demand for machinery, computers and automobiles.
U.S. Stocks Rally as Federal Reserve Signals Low Interest Rates; GE Gains (Source: Bloomberg)
U.S. stocks rose, giving the Standard & Poor’s 500 Index the fifth gain in six days, as the Federal Reserve renewed its pledge to stimulate growth with low rates and said a pickup in inflation is likely temporary. General Electric Co. (GE) added 2.7 percent after saying it wants to boost its dividend. Moody’s Corp. (MCO), whose founder John Moody created credit ratings more than a century ago, climbed 6.7 percent as profit beat estimates by 25 percent. Amazon.com Inc. (AMZN) gained 7.9 percent as the world’s largest online retailer reported sales that topped predictions and Deutsche Bank AG increased its share-price estimate to $215.
U.S. consumers perk up but home prices fall again
NEW YORK, April 26 (Reuters) - U.S. consumers perked up a bit in April as they lowered their forecasts for inflation and worried less about the jobs market, but yet another fall in house prices underscored the challenges facing the recovery.
The overall confidence level, as measured by the Conference Board, an industry group, was still historically low.
Dollar Hits 16-Month Low Versus Euro After Bernanke Comment; Kiwi Declines (Source: Bloomberg)
The dollar fell to a 16-month low against the euro after the Federal Reserve renewed its pledge to keep interest rates near zero to stimulate economic growth.
S&P cuts Japan sovereign rating outlook on quake costs
TOKYO, April 27 (Reuters) - Standard and Poor's on Wednesday threatened to cut Japan's sovereign rating, warning that the huge cost from last month's devastating earthquake will hurt the country's already weak public finances without tax hikes.
The rating agency said costs related to the March 11 earthquake, tsunami, and nuclear power plant disaster will increase Japan's fiscal deficit above prior estimates by a cumulative 3.7 percent of GDP through 2013.
Japan’s Industrial Output Plunges 15.3% as Record Quake Disrupts Supplies (Source: Bloomberg)
Japan’s industrial production plunged after a record earthquake and a tsunami led to shuttered factories, disruptions in supply chains, and a nuclear crisis.
Japan Housing Starts May Post First Decline in 10 Months After Earthquake (Source: Bloomberg)
Japan’s housing starts may post the first decline in 10 months as the nation’s strongest earthquake on March 11 sapped demand, halting the strongest recovery in the real estate market in almost 15 years. Construction companies broke ground on 1.1 percent fewer homes in March from a year earlier, according to the median estimate of 23 economists in a Bloomberg News survey. The Ministry of Land, Infrastructure, Transport and Tourism is scheduled to release the data at 2 p.m. Tokyo time today.
Japan Rating Threat May Force Higher Taxes to Fund Rebuilding (Source: Bloomberg)
The threat of a cut to Japan’s credit rating adds pressure on Prime Minister Naoto Kan to raise taxes as he wrestles with financing earthquake rebuilding without adding to the world’s biggest public debt burden. Standard & Poor’s lowered its outlook yesterday to “negative” on Japan’s AA- local-currency rating, estimating that costs stemming from the earthquake, tsunami and nuclear crisis may boost budget deficits by 3.7 percent of gross domestic product through 2013.
Japanese Stocks Rise on Fed’s Low-Rate Pledge; Advantest Gains (Source: Bloomberg)
Japanese stocks rose for a second day after the U.S. Federal Reserve renewed its pledge to stimulate growth in the world’s biggest economy with low interest rates, and the yen weakened. Advantest Corp., the world’s biggest maker of tools used to test memory chips, climbed 2.6 percent. Kyocera Corp., an electronics maker that gets 18 percent of its revenue in Europe, increased 1.9 percent, after the yen weakened. Komatsu Ltd., the world’s second-largest maker of construction equipment, advanced 2.2 percent after posting a more than threefold jump in fourth- quarter profit.
Indonesia Raises $2.5 Billion From Its First Dollar Bond Sale of This Year (Source: Bloomberg)
Indonesia sold $2.5 billion in dollar-denominated bonds after attracting bids for almost three times that amount, tapping appetite for assets of developing economies poised to grow faster than advanced nations. Southeast Asia’s largest economy sold the 10-year bonds with a 4.875 percent coupon to yield 5.1 percent yesterday. Bids totaled $6.9 billion, or 2.9 times the notes on offer, said a person familiar with the sale, who asked not to be identified because he wasn’t authorized to speak publicly on the matter. The Philippines sold $1.5 billion of 15-year dollar debt in March, attracting $6.5 billion in bids.
German Consumer Confidence to Decline in May Amid Higher Prices, GfK Says (Source: Bloomberg)
German consumer confidence will decline for a second month in May as households grapple with higher food and energy prices, GfK AG said. The Nuremburg-based market research company today forecast that its consumer sentiment index, based on a survey of about 2,000 people, will fall to 5.7 next month from 5.9 in April. Economists predicted a decline to 5.8, according to the median of 26 estimates in a Bloomberg News survey.
U.K. Economy Grew 0.5% in First Quarter as Services Surged Most Since 2006 (Source: Bloomberg)
Britain’s economy rebounded in the first quarter by enough to erase the contraction of the previous three months on the strongest surge in service-industry growth for four years.
Spain Crisis Exemption Poses Renewed Test for Salgado as Local Votes Loom (Source: Bloomberg)
Spain’s resistance to Europe’s debt crisis may be tested next month as local governments taking power after regional elections threaten to repeat Catalonia’s experience when revealing the state of their finances. Finance Minister Elena Salgado, who is spearheading the nation’s efforts to stave off turmoil, agreed to seven deficit- cutting plans with local finance chiefs late yesterday and left six pending until after May 22 elections for 13 regions and 8,000 municipalities. Catalonia, Spain’s largest region, revealed a budget shortfall 60 percent wider than previously acknowledged after its government won an election in November.
Spain Calls Draghi ‘Excellent’ Choice for ECB President, Isolating Merkel (Source: Bloomberg)
Spanish Finance Minister Elena Salgado called Mario Draghi an “excellent” choice as the next European Central Bank president, leaving Germany as the only one of the four biggest euro countries that has yet to endorse the Bank of Italy governor. “Spain’s position is that we think he is an excellent candidate,” Salgado told reporters late yesterday in Madrid hours after her ministry had declined to comment.
Euro zone Feb new orders rise, Jan revised upwards
BRUSSELS, April 27 (Reuters) - Euro zone industrial new orders rose slightly less than expected in February, but January orders were revised upwards, data showed on Wednesday, pointing to stronger industrial production later this year.
The European Union's statistics office Eurostat said industrial new orders in the 17 countries using the euro rose 0.9 percent month-on-month for a 21.3 percent year-on-year gain.
New Zealand Leaves Key Rate at 2.5% on ‘Uncertain’ Outlook; Currency Drops (Source: Bloomberg)
New Zealand’s central bank kept its benchmark interest rate at a record low as the nation recovers from the most devastating earthquake in 80 years, sending the country’s currency lower. “The outlook for the New Zealand economy remains very uncertain,” Governor Alan Bollard said in a statement today in Wellington after leaving the official cash rate at 2.5 percent. “Given the outlook for core inflation and continued economic disruption from the earthquakes, the current level of the cash rate is likely to remain appropriate for some time.”
Mumbai’s Home Sales Drop to Two-Year Low as Unsold Units Climb to a Record (Source: Bloomberg)
Mumbai home sales dropped to a two- year low in the first quarter as record prices and interest rates at the highest since 2008 crimped demand, increasing the number of unsold units to a record, according to Liases Foras Real Estate Rating & Research Pvt. Sales in Mumbai, India’s most expensive property market, fell to 9.09 million square feet in the three months ended March, 14 percent lower than the December quarter and the lowest since the first quarter of 2009, Mumbai-based Pankaj Kapoor, founder of Liases Foras said. Unsold stock climbed to 105 million square feet, while the weighted average price of homes rose to a record 9,234 rupees ($208) a square foot.
FOREX-Dollar sags, seen staying pressured on Fed stance
LONDON, April 27 (Reuters) - The dollar fell against most currencies on Wednesday and looked set to stay under pressure on expectations the U.S. Federal Reserve will reaffirm its ultra-loose monetary policy for the coming months.
Sterling neared 17-month highs against the greenback after an in-line reading of first quarter UK growth, with investors who had sold the pound on anticipation of a softer figure being forced to buy it back.
Dollar at 3-year low before Fed, stocks steady (Source: Reuters)
The U.S. dollar plumbed a three-year low against other major currencies on Wednesday before a Federal Reserve decision which is expected to reaffirm ultra-easy policy, while European shares inched lower. The dollar skidded to 73.493 against a currency basket, driven by interest rate differentials. The index is now down close to 10 percent from its peak in January and many traders expect it eventually to revisit an all-time low of 70.698 hit in 2008.
20110428 0937 Global Commodities Related News.
Corn (Source: CME)
US corn futures end lower as traders reduced risk ahead of Fed Chairman Bernanke's press conference. "If Bernanke says anything remotely bullish for the dollar, it could lead to a short-covering rally that would put pressure on pretty much everything else," such as the grains, warned MF Global. Predictions for improved weather added pressure to prices after cool, wet conditions delayed early planting. "The latest models are saying it's going to get drier and warmer," says Sid Love, analyst for Kropf & Love Consulting. CBOT July corn slides 13 1/2c to $7.59 1/4 a bushel.
Wheat (Source: CME)
US wheat futures finish sharply lower as traders reduced risk and took profits after recent gains. Traders worried Fed chairman's comments would sway the dollar or other markets that influence commodities. Prices felt additional pressure from beneficial rains in dry parts of the US Plains and Europe. "Obviously we ran prices up too far too fast on the idea that the crop is gone," says Sid Love, analyst for Kropf & Love Consulting. CBOT July wheat sinks 35c to $8.12 a bushel; KCBT July tumbles 37 3/4c to $9.23; MGE July sheds 27 1/4c to $9.54 1/4.
Rice (Source: CME)
US rice futures close weaker on spillover pressure from sinking wheat and corn prices. Traders were reducing risk in the grains and taking profits as concerns eased about poor weather. It seems worries about rains delaying US rice planting have been dialed into the market, an analyst says. CBOT July rice drops 16c to $14.50 1/2 per hundredweight.
Argentina Pres Sends Congress Bill Limiting Foreign Land Ownership (Source: CME)
Argentine President Cristina Fernandez has sent a bill to Congress placing strict limits on the amount of farm and rural land that foreigners can purchase, throwing cold water on a wave of foreign buying of farmland in the agricultural powerhouse. Under the proposed bill, foreigners will be limited to buying 1,000 hectares (2,500 acres) each and a nationwide survey will be conducted to ensure that no more than 20% of the country's total rural area is in the hands of foreigners, Fernandez announced. Existing landholdings held by foreigners will not be affected, Fernandez said.
Russian Domestic Grain Prices Fall This Week On State Intervention Fund (Source: CME)
Russian domestic grain prices continue to fall this week as the government continues to sell grain from the State Intervention Fund amid no fresh news on the Russian grains export ban, the SovEcon agricultural markets analysis body said. The Russian government imposed a ban on the export of grain Aug. 15, to last until June 30 2011 because of severe drought. The drought has resulted in Russia's grain harvest this year falling to 60 million metric tons, according to the agriculture ministry's estimates, from 97.1 million tons last year. SovEcon said domestic prices for fourth-grade milling wheat retreated 1% to 5,200 rubles a metric ton, and third-grade milling wheat declined 2% to RUB5,500/ton. Average corn price this week also fell 2% to RUB7,700 a ton. "Now, Russian domestic prices are lower than U.S. and EU corn price levels. But in January, Russian prices were the same as international corn prices," said Andrey Sizov Jr. Managing Director of SovEcon.
Sizov added that Russian grain price levels are falling because the government continues to sell grain from the State Intervention Fund and has not advised further on the grain export ban. The State Intervention Fund refers to the quantities of grain purchased in previous years by the government to support price levels and to curb inflation when necessary. "At the start of the year, we estimate the government had 9.6 million tons of grain in the state intervention fund. Now, we believe this has fallen to seven million tons as the government continues to sell from this fund," said Sizov. Russia's domestic grain prices have also slumped in recent weeks due to a growing consensus the market may have more supplies than previously thought. The Russian Grain Union estimates the country may have up to eight million tons more grain than originally thought as farmers have stockpiled supplies and several million tons sitting in elevators in the south has not been sold.
Sizov said grain supplies in Russia are not as abundant as some observers believe and the country has still resorted to 10,000-20,000 tons of corn and 20,000-30,000 tons of barley imports.
Midwest Storms Delay Crucial Planting Season (Source: CME)
Unusually rainy and cool weather is delaying many Midwest farmers from launching the planting boon that food executives are banking on to replenish tight grain supplies. According to the U.S. Agriculture Department, farmers in the 18 biggest corn-producing states had planted just 9% of their corn acres by Sunday, compared with the five-year average of 23% of their corn acres by this time of the year. In Iowa, the biggest corn producing state, farmers had managed to plant just 3% of their intended corn acres compared with 61% at this time in the spring of 2010, when the planting season started unusually early. The planting season is also running behind average in Minnesota, the Dakotas and Montana. Only 6% of the spring wheat grown on the Northern Plains and Pacific Northwest had been planted by Sunday compared with 39% last year. Likewise, only 10% of U.S. sugar beet acreage had been planted by Sunday compared with 80% by that time last year.
Agricultural analysts said Midwest farmers still have weeks to get their seeds in the ground in order to reap bumper harvests. Indeed, U.S. corn farmers were even further behind in the spring of 2008, yet managed to produce what was then their second-biggest corn harvest ever. Dan Basse, president of AgResource Co., a Chicago commodity forecasting concern, said Tuesday that Midwest planting delays wouldn't prompt him to cut his harvest forecasts unless they continue for a few more weeks. "Corn won't lose its yield potential until it's planted after May 15," said Mr. Basse, who continues to expect U.S. corn farmers to produce a record 13.8 billion bushels this year. Food and textile executives are paying close attention to weather across the Farm Belt this planting season because strong demand and tight supplies of key crops are pushing their ingredient costs to high levels. Prices of Midwest corn, Southern Plains wheat and cotton have doubled from a year ago; soybean prices are up 40%.
Food makers and meatpackers are counting on a planting boon to replenish supplies and push down crop prices. Meteorologists say the stormy Midwest spring is being fueled by the same La Nina weather phenomenon that is behind the drought gripping Southern Plains states such as Texas and Oklahoma, where the wheat crop planted last fall is shriveling from thirst even as Minnesota fields are too muddy and cold to plant with seed. According to the USDA, 72% of the Texas wheat crop is in very poor to poor condition. La Nina is a cooling of the surface of the eastern Pacific Ocean along the equator. The cooler-than-normal water temperature is thought to trigger dry weather in the southern U.S. by reducing the amount of moisture that is picked up by the subtropical jet stream, a high-altitude air flow that serves as a highway for storms.
U.S. wheat extends losses, corn dips on Fed uncertainty
U.S. wheat futures lost more ground on Wednesday, dropping almost 1 percent, while corn fell half a percent, ending a three-day rising streak on uncertainty ahead of a Federal Reserve news conference later in the day. "There is uncertainty before the Fed press conference which is likely to affect the entire commodities complex," said Ker Chung Yang, an analyst at Phillip Futures in Singapore.
Kazakhstan wheat output seen 14.5 mln T - attache
WASHINGTON, April 26 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Kazakhstan: "Assuming normal weather, FAS Astana forecasts that Kazakhstan's wheat crop in MY 2011 will rebound to 14.5 million tonnes from the drought affected 9.7 million tonnes in MY 2010. Wheat exports are forecast at 7 million tonnes, an increase by 2 million tonnes from MY 2010, and most wheat and flour
will be exported to Asian countries, while exports to Russia will not exceed 1 million tonnes.
Vietnam rice export prices up as paddy prices rise-attache
WASHINGTON, April 26 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Vietnam: "Export rice prices went up last week due to the pressure of higher local paddy prices. The harvest of the spring crop in the Mekong River Delta is coming to an end; thus farmers are trying to hold their newly harvested paddy, anticipating a higher selling price later in the year."
Morocco ends soft wheat imports as local crop surges
MEKNES, Morocco, April 26 (Reuters) - The Moroccan government has wrapped up its soft wheat imports a month ahead of schedule and will rely on a local cereals harvest it expects to rise by 18 percent, its top farming official said on Tuesday.
Speaking on the sidelines of a farming conference in the central city of Meknes, Agriculture Minister Aziz Akhennouch also told Reuters the agriculture-reliant economy "could add a few points of extra growth", after the announcement of a cereals harvest forecast of 8.8 million tonnes this year.
Weekend rain not enough to help parched EU wheat
HAMBURG, April 26 (Reuters) - Easter rain in parts of west Europe was not enough to significantly help parched wheat crops in key producers France and Germany, and fears of crop damage are growing, analysts and traders said on Tuesday.
Weather forecasts for both countries are for only scattered rain this week. Dryness could start to cut wheat yields in the 2011 harvest in France and Germany, analysts said. Concern is also growing in Britain, but the outlook in Italy and Spain is better.
Russian wheat exports loom, may pressure prices
SINGAPORE, April 26 (Reuters) - Russia is likely to resume wheat exports later this year which will add to the global surplus of the grain, putting pressure on international prices, a U.S.-based agriculture consultant said on Tuesday.
Russia, typically the world's third largest wheat exporter, banned overseas grain sales last year after a devastating drought ravaged the Black Sea region, pushing wheat prices higher on the benchmark Chicago Board of Trade.
U.S. corn planting seen 13 pct done, behind schedule
CHICAGO, April 25 (Reuters) - Damp soil and cold weather around the U.S. Midwest have likely put farmers well behind their ideal corn planting schedule and left them hoping for a quick warm-up as the deadline for optimal seeding approaches.
The U.S. Agriculture Department's weekly crop progress report on Monday afternoon is expected to show that farmers had planted 13 percent of their anticipated corn acreage as of April 24, based on an average of estimates given by nine analysts.
Arabica coffee edges up early as uptrend resumes
Arabica coffee futures on ICE were higher in early trade on Wednesday with the market heading back up towards last week's 34-year peak while sugar fell as the market eyed Friday's expiry of May raws. Arabica coffee futures on ICE edged up with the market back on an upward track, supported both by constructive technicals and tight supplies.
Italians keep drinking coffee despite price rises
MILAN, April 26 (Reuters) - Italians keep drinking coffee, despite rising prices, and this year they are consuming as much or even slightly more than in 2010 although they have more at home to save money, a senior industry official said.
Italy is one of Europe's major coffee markets, using about 5.7-5.8 kg per head and with total consumption of 5.8 million 60-kg coffee bags in 2009, according to data from the International Coffee Organisation (ICO).
Indonesia 2011 cocoa exports seen down as much as 12.5 pct
JAKARTA, April 27 (Reuters) - Cocoa exports from Indonesia, the world's third-largest cocoa producer, may fall by as much as 12.5 percent this year, the Indonesian Cocoa Association said on Wednesday.
Cocoa exports from Southeast Asia's largest economy will be between 280,000 tonnes and 300,000 tonnes this year, down from 320,000 tonnes in 2010, Zulhefi Sikumbang, chairman of an association known as Askindo, said at a news conference.
Russia 11/12 sugar beet output seen up 40 pct-attache
WASHINGTON, April 26 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Russia: "Russian sugar beet production is expected to rebound strongly in 2011 and ffectively displace a significant portion of raw sugar imports in 2011/12. GOR subsidies and normal weather conditions should allow industry to ultimately increase harvested area and production to 1.2 million hectares (24 percent over 2010) and 30 million tonnes (40 percent over 2010), respectively.
Ivory Coast cocoa trade, banking poised to restart
ABIDJAN, April 26 (Reuters) - Ivory Coast's cocoa and banking sectors are set to resume operations within days, officials said on Tuesday, signalling big steps toward restoring normality in the conflict-torn West African state.
A violent post-election power struggle paralyzed the economy of the world's top cocoa grower for months, leaving Ivorians to scramble for daily survival in the midst of heavy combat and sending shockwaves through global cocoa markets.
Brazil cocoa arrivals up 12 pct from year ago
BRASILIA, April 26 (Reuters) - Deliveries of cocoa to warehouses from the main growing regions in Brazil were up 12 percent from a year ago, with just one week left before the 2010/11 season ends, Bahia Commercial Association data showed on Tuesday.
Cocoa deliveries have slowed to a trickle in the lull between the end of the main crop and the start of the forthcoming mid crop which should begin harvesting in May or June depending on the region.
Ivorian cocoa mid-crop boosted by fine weather
ABIDJAN, April 26 (Reuters) - Patchy rains and sun in Ivory Coast's cocoa growing regions last week was good news for the development of the April-to-September mid-crop, farmers and analysts said on Tuesday.
Traders are eyeing the mid-crop in the world's top cocoa producer, with several exporters forecasting between 250,000 and 300,000 tonnes reaching port -- where warehouses are already brimming with tonnage delayed by a violent political struggle.
Russia metals exporters face rail constraints
MOSCOW, April 27 (Reuters) - Russian metals firms seeking to increase exports to China and other Asian buyers face an uphill struggle as they grapple with infrastructure constraints on Soviet-era rail lines in Siberia and the Far East.
Russia's two main rail lines in the region, the Trans-Siberian and the Baikal Amur Mainline (BAM) are becoming overburdened as freight shipments increase.
China April power shortages hit aluminium, lead demand-industry
HONG KONG, April 27 (Reuters) - An unexpected coal shortage for power plants in key Chinese industrial provinces in April has caused a drop in aluminium and lead demand by end users that threatens to shut some small smelters, while larger ones face lower prices, industry sources said on Wednesday.
China, the world's biggest market and maker for the two metals, normally hits peak electricity demand in the summer and can often face shortages, leading provincial officials to cut supplies to intensive energy users.
Europe aluminium premiums hit all-time peak
LONDON, April 26 (Reuters) - Premiums for duty-paid physical aluminium in Europe hit a record high this week, due to material being locked up in financing deals in London Metal Exchange (LME) warehouses or being in Detroit where it is hard to access.
Premiums for duty-paid metal in Rotterdam this week were at $210-235 a tonne over London Metal Exchange (LME) cash prices , traders said, the highest since Reuters records began in 1998.
Japan March aluminium shipments fall 8.5 pct yr/yr
TOKYO, April 27 (Reuters) - - Japanese shipments of aluminium products fell 8.5 percent in March from a year earlier, logging the first year-on-year decline in 16 months as last month's devastating earthquake took a toll on demand from industries across the board.
Shipments for the month fell to 170,878 tonnes as the March 11 earthquake and tsunami in northeastern Japan forced manufacturers to halt or slash production due to infrastructure damage, power cuts and shortages of parts, data provided by the Japan Aluminium Association showed on Wednesday.
Japan March copper exports fall 16 pct yr/yr
TOKYO, April 27 (Reuters) - - Japan's refined copper exports fell 16 percent in March from a year earlier to 50,258 tonnes for a sixth straight month of year-on-year declines, although the pace was slowing, Ministry of Finance data showed on Wednesday.
Demand for copper, used in utensils, construction materials and computer chips, is often seen as a gauge of economic activity.
Russia to peg nickel export duty to LME prices
MOSCOW, April 26 (Reuters) - Russia will peg its export tariff for nickel, currently fixed at 10 percent, to metal prices on the London Metals Exchange, an order published on a government web site showed on Tuesday.
At the current price of $26,450 per tonne, the new formula would mean a tariff increase of nearly 30 percent, or nearly $800 per tonne.
U.S. steelmakers see improved second quarter
NEW YORK, April 26 (Reuters) - Two major U.S. steelmakers reported contrasting quarterly results on Tuesday, but both gave positive outlooks for the industry as improving economic conditions boost demand and prices.
U.S. Steel Corp stock fell 4 percent to close at $49.72 as it reported a wider-than-expected loss in the first quarter, while AK Steel's shares rose 6.3 percent to $16.96 as its results beat Wall Street estimates.
Glencore holds up to 80 pct LME lead stocks -sources
LONDON, April 26 (Reuters) - Commodity trader Glencore has moved lead stocks to London Metal Exchange monitored warehouses to make evident the value of the holdings before its flotation, senior metal trading sources said.
LME data shows that one entity controls between 50 and 80 percent of inventories. While the exchange does not release the identity of the holder, traders say it is Glencore.
Japan March zinc exports fall 35 pct yr/yr
TOKYO, April 27 (Reuters) - Japan's refined zinc exports for March fell 34.6 percent from a year earlier to 7,444 tonnes, widening from February's year-on-year decrease of 9 percent, Ministry of Finance data showed on Wednesday.
The wider year-on-year drop in March reflected the impact from a March 11 earthquake which devastated northeast Japan and shut nearly 65 percent of the country's production capacity of zinc, used in automotive steel sheet and construction materials.
Japan rare earths imports from China jump 40 pct in March
TOKYO, April 27 (Reuters) - Japan's imports of rare earths from China rose 40 percent in March from the previous month, Ministry of Finance data showed, with some observers saying demand is so far unaffected by last month's devastating quake though the outlook remains murky.
Imports of rare earths from China stood at 1,603.6 tonnes in March, the data showed on Wednesday. That was up from 1,138 tonnes in February and close to January's 1,783 tonnes, indicating that inflows of the metals continued after Beijing's de-facto ban on shipments was lifted in November.
METALS-Copper falls on inventory rise, caution on Fed
LONDON, April 27 (Reuters) - Copper fell on Wednesday as inventories of the metal continued to build and as investors tread carefully ahead of a U.S. Federal Reserve decision on monetary policy, but a weaker dollar kept further losses in check.
Benchmark copper on the London Metal Exchange traded at $9,406 at 0921 GMT, from a close of $9,545 a tonne on Tuesday.
PRECIOUS-Silver steadies, gold perky ahead of Fed decision
LONDON, April 27 (Reuters) - Silver steadied on Wednesday, after its largest one-day slide in over a month the previous day, while gold profited from a weaker dollar which came under pressure ahead of a U.S. Federal Reserve interest rate decision.
The Fed is not expected to signal any rush to scale back its multi-billion dollar support mechanisms for the economy, so investors are waiting to hear more on the outlook for monetary policy from chairman Ben Bernanke when he gives the central bank's first post-decision news conference later in the day.
Gold Futures Surge to Record on Outlook for Sagging Dollar, Low U.S. Rates (Source: Bloomberg)
Gold futures rose to a record $1,530.30 an ounce on speculation that the Federal Reserve will be slow to raise U.S. borrowing costs, weakening the dollar and boosting the appeal of the metal as an alternative asset. The dollar fell to the lowest since December 2009 against the euro after the Fed kept borrowing costs at a record low and said it would continue $600 billion in bond purchases through June. The European Central Bank this month began raising rates to stem inflation.
Oil Rises a Second Day After U.S. Fuel Stockpiles Fall More Than Forecast (Source: Bloomberg)
Oil climbed for a second day in New York after a government report showed gasoline stockpiles in the U.S. declined more than analysts estimated to the lowest since August 2009. Futures advanced from the highest settlement in more than two weeks after the Energy Department said gasoline inventories fell 2.51 million barrels to 205.6 million, declining for the 10th week. Supplies were projected to drop 1 million barrels last week, according to analysts surveyed by Bloomberg News.
US corn futures end lower as traders reduced risk ahead of Fed Chairman Bernanke's press conference. "If Bernanke says anything remotely bullish for the dollar, it could lead to a short-covering rally that would put pressure on pretty much everything else," such as the grains, warned MF Global. Predictions for improved weather added pressure to prices after cool, wet conditions delayed early planting. "The latest models are saying it's going to get drier and warmer," says Sid Love, analyst for Kropf & Love Consulting. CBOT July corn slides 13 1/2c to $7.59 1/4 a bushel.
Wheat (Source: CME)
US wheat futures finish sharply lower as traders reduced risk and took profits after recent gains. Traders worried Fed chairman's comments would sway the dollar or other markets that influence commodities. Prices felt additional pressure from beneficial rains in dry parts of the US Plains and Europe. "Obviously we ran prices up too far too fast on the idea that the crop is gone," says Sid Love, analyst for Kropf & Love Consulting. CBOT July wheat sinks 35c to $8.12 a bushel; KCBT July tumbles 37 3/4c to $9.23; MGE July sheds 27 1/4c to $9.54 1/4.
Rice (Source: CME)
US rice futures close weaker on spillover pressure from sinking wheat and corn prices. Traders were reducing risk in the grains and taking profits as concerns eased about poor weather. It seems worries about rains delaying US rice planting have been dialed into the market, an analyst says. CBOT July rice drops 16c to $14.50 1/2 per hundredweight.
Argentina Pres Sends Congress Bill Limiting Foreign Land Ownership (Source: CME)
Argentine President Cristina Fernandez has sent a bill to Congress placing strict limits on the amount of farm and rural land that foreigners can purchase, throwing cold water on a wave of foreign buying of farmland in the agricultural powerhouse. Under the proposed bill, foreigners will be limited to buying 1,000 hectares (2,500 acres) each and a nationwide survey will be conducted to ensure that no more than 20% of the country's total rural area is in the hands of foreigners, Fernandez announced. Existing landholdings held by foreigners will not be affected, Fernandez said.
Russian Domestic Grain Prices Fall This Week On State Intervention Fund (Source: CME)
Russian domestic grain prices continue to fall this week as the government continues to sell grain from the State Intervention Fund amid no fresh news on the Russian grains export ban, the SovEcon agricultural markets analysis body said. The Russian government imposed a ban on the export of grain Aug. 15, to last until June 30 2011 because of severe drought. The drought has resulted in Russia's grain harvest this year falling to 60 million metric tons, according to the agriculture ministry's estimates, from 97.1 million tons last year. SovEcon said domestic prices for fourth-grade milling wheat retreated 1% to 5,200 rubles a metric ton, and third-grade milling wheat declined 2% to RUB5,500/ton. Average corn price this week also fell 2% to RUB7,700 a ton. "Now, Russian domestic prices are lower than U.S. and EU corn price levels. But in January, Russian prices were the same as international corn prices," said Andrey Sizov Jr. Managing Director of SovEcon.
Sizov added that Russian grain price levels are falling because the government continues to sell grain from the State Intervention Fund and has not advised further on the grain export ban. The State Intervention Fund refers to the quantities of grain purchased in previous years by the government to support price levels and to curb inflation when necessary. "At the start of the year, we estimate the government had 9.6 million tons of grain in the state intervention fund. Now, we believe this has fallen to seven million tons as the government continues to sell from this fund," said Sizov. Russia's domestic grain prices have also slumped in recent weeks due to a growing consensus the market may have more supplies than previously thought. The Russian Grain Union estimates the country may have up to eight million tons more grain than originally thought as farmers have stockpiled supplies and several million tons sitting in elevators in the south has not been sold.
Sizov said grain supplies in Russia are not as abundant as some observers believe and the country has still resorted to 10,000-20,000 tons of corn and 20,000-30,000 tons of barley imports.
Midwest Storms Delay Crucial Planting Season (Source: CME)
Unusually rainy and cool weather is delaying many Midwest farmers from launching the planting boon that food executives are banking on to replenish tight grain supplies. According to the U.S. Agriculture Department, farmers in the 18 biggest corn-producing states had planted just 9% of their corn acres by Sunday, compared with the five-year average of 23% of their corn acres by this time of the year. In Iowa, the biggest corn producing state, farmers had managed to plant just 3% of their intended corn acres compared with 61% at this time in the spring of 2010, when the planting season started unusually early. The planting season is also running behind average in Minnesota, the Dakotas and Montana. Only 6% of the spring wheat grown on the Northern Plains and Pacific Northwest had been planted by Sunday compared with 39% last year. Likewise, only 10% of U.S. sugar beet acreage had been planted by Sunday compared with 80% by that time last year.
Agricultural analysts said Midwest farmers still have weeks to get their seeds in the ground in order to reap bumper harvests. Indeed, U.S. corn farmers were even further behind in the spring of 2008, yet managed to produce what was then their second-biggest corn harvest ever. Dan Basse, president of AgResource Co., a Chicago commodity forecasting concern, said Tuesday that Midwest planting delays wouldn't prompt him to cut his harvest forecasts unless they continue for a few more weeks. "Corn won't lose its yield potential until it's planted after May 15," said Mr. Basse, who continues to expect U.S. corn farmers to produce a record 13.8 billion bushels this year. Food and textile executives are paying close attention to weather across the Farm Belt this planting season because strong demand and tight supplies of key crops are pushing their ingredient costs to high levels. Prices of Midwest corn, Southern Plains wheat and cotton have doubled from a year ago; soybean prices are up 40%.
Food makers and meatpackers are counting on a planting boon to replenish supplies and push down crop prices. Meteorologists say the stormy Midwest spring is being fueled by the same La Nina weather phenomenon that is behind the drought gripping Southern Plains states such as Texas and Oklahoma, where the wheat crop planted last fall is shriveling from thirst even as Minnesota fields are too muddy and cold to plant with seed. According to the USDA, 72% of the Texas wheat crop is in very poor to poor condition. La Nina is a cooling of the surface of the eastern Pacific Ocean along the equator. The cooler-than-normal water temperature is thought to trigger dry weather in the southern U.S. by reducing the amount of moisture that is picked up by the subtropical jet stream, a high-altitude air flow that serves as a highway for storms.
U.S. wheat extends losses, corn dips on Fed uncertainty
U.S. wheat futures lost more ground on Wednesday, dropping almost 1 percent, while corn fell half a percent, ending a three-day rising streak on uncertainty ahead of a Federal Reserve news conference later in the day. "There is uncertainty before the Fed press conference which is likely to affect the entire commodities complex," said Ker Chung Yang, an analyst at Phillip Futures in Singapore.
Kazakhstan wheat output seen 14.5 mln T - attache
WASHINGTON, April 26 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Kazakhstan: "Assuming normal weather, FAS Astana forecasts that Kazakhstan's wheat crop in MY 2011 will rebound to 14.5 million tonnes from the drought affected 9.7 million tonnes in MY 2010. Wheat exports are forecast at 7 million tonnes, an increase by 2 million tonnes from MY 2010, and most wheat and flour
will be exported to Asian countries, while exports to Russia will not exceed 1 million tonnes.
Vietnam rice export prices up as paddy prices rise-attache
WASHINGTON, April 26 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Vietnam: "Export rice prices went up last week due to the pressure of higher local paddy prices. The harvest of the spring crop in the Mekong River Delta is coming to an end; thus farmers are trying to hold their newly harvested paddy, anticipating a higher selling price later in the year."
Morocco ends soft wheat imports as local crop surges
MEKNES, Morocco, April 26 (Reuters) - The Moroccan government has wrapped up its soft wheat imports a month ahead of schedule and will rely on a local cereals harvest it expects to rise by 18 percent, its top farming official said on Tuesday.
Speaking on the sidelines of a farming conference in the central city of Meknes, Agriculture Minister Aziz Akhennouch also told Reuters the agriculture-reliant economy "could add a few points of extra growth", after the announcement of a cereals harvest forecast of 8.8 million tonnes this year.
Weekend rain not enough to help parched EU wheat
HAMBURG, April 26 (Reuters) - Easter rain in parts of west Europe was not enough to significantly help parched wheat crops in key producers France and Germany, and fears of crop damage are growing, analysts and traders said on Tuesday.
Weather forecasts for both countries are for only scattered rain this week. Dryness could start to cut wheat yields in the 2011 harvest in France and Germany, analysts said. Concern is also growing in Britain, but the outlook in Italy and Spain is better.
Russian wheat exports loom, may pressure prices
SINGAPORE, April 26 (Reuters) - Russia is likely to resume wheat exports later this year which will add to the global surplus of the grain, putting pressure on international prices, a U.S.-based agriculture consultant said on Tuesday.
Russia, typically the world's third largest wheat exporter, banned overseas grain sales last year after a devastating drought ravaged the Black Sea region, pushing wheat prices higher on the benchmark Chicago Board of Trade.
U.S. corn planting seen 13 pct done, behind schedule
CHICAGO, April 25 (Reuters) - Damp soil and cold weather around the U.S. Midwest have likely put farmers well behind their ideal corn planting schedule and left them hoping for a quick warm-up as the deadline for optimal seeding approaches.
The U.S. Agriculture Department's weekly crop progress report on Monday afternoon is expected to show that farmers had planted 13 percent of their anticipated corn acreage as of April 24, based on an average of estimates given by nine analysts.
Arabica coffee edges up early as uptrend resumes
Arabica coffee futures on ICE were higher in early trade on Wednesday with the market heading back up towards last week's 34-year peak while sugar fell as the market eyed Friday's expiry of May raws. Arabica coffee futures on ICE edged up with the market back on an upward track, supported both by constructive technicals and tight supplies.
Italians keep drinking coffee despite price rises
MILAN, April 26 (Reuters) - Italians keep drinking coffee, despite rising prices, and this year they are consuming as much or even slightly more than in 2010 although they have more at home to save money, a senior industry official said.
Italy is one of Europe's major coffee markets, using about 5.7-5.8 kg per head and with total consumption of 5.8 million 60-kg coffee bags in 2009, according to data from the International Coffee Organisation (ICO).
Indonesia 2011 cocoa exports seen down as much as 12.5 pct
JAKARTA, April 27 (Reuters) - Cocoa exports from Indonesia, the world's third-largest cocoa producer, may fall by as much as 12.5 percent this year, the Indonesian Cocoa Association said on Wednesday.
Cocoa exports from Southeast Asia's largest economy will be between 280,000 tonnes and 300,000 tonnes this year, down from 320,000 tonnes in 2010, Zulhefi Sikumbang, chairman of an association known as Askindo, said at a news conference.
Russia 11/12 sugar beet output seen up 40 pct-attache
WASHINGTON, April 26 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Russia: "Russian sugar beet production is expected to rebound strongly in 2011 and ffectively displace a significant portion of raw sugar imports in 2011/12. GOR subsidies and normal weather conditions should allow industry to ultimately increase harvested area and production to 1.2 million hectares (24 percent over 2010) and 30 million tonnes (40 percent over 2010), respectively.
Ivory Coast cocoa trade, banking poised to restart
ABIDJAN, April 26 (Reuters) - Ivory Coast's cocoa and banking sectors are set to resume operations within days, officials said on Tuesday, signalling big steps toward restoring normality in the conflict-torn West African state.
A violent post-election power struggle paralyzed the economy of the world's top cocoa grower for months, leaving Ivorians to scramble for daily survival in the midst of heavy combat and sending shockwaves through global cocoa markets.
Brazil cocoa arrivals up 12 pct from year ago
BRASILIA, April 26 (Reuters) - Deliveries of cocoa to warehouses from the main growing regions in Brazil were up 12 percent from a year ago, with just one week left before the 2010/11 season ends, Bahia Commercial Association data showed on Tuesday.
Cocoa deliveries have slowed to a trickle in the lull between the end of the main crop and the start of the forthcoming mid crop which should begin harvesting in May or June depending on the region.
Ivorian cocoa mid-crop boosted by fine weather
ABIDJAN, April 26 (Reuters) - Patchy rains and sun in Ivory Coast's cocoa growing regions last week was good news for the development of the April-to-September mid-crop, farmers and analysts said on Tuesday.
Traders are eyeing the mid-crop in the world's top cocoa producer, with several exporters forecasting between 250,000 and 300,000 tonnes reaching port -- where warehouses are already brimming with tonnage delayed by a violent political struggle.
Russia metals exporters face rail constraints
MOSCOW, April 27 (Reuters) - Russian metals firms seeking to increase exports to China and other Asian buyers face an uphill struggle as they grapple with infrastructure constraints on Soviet-era rail lines in Siberia and the Far East.
Russia's two main rail lines in the region, the Trans-Siberian and the Baikal Amur Mainline (BAM) are becoming overburdened as freight shipments increase.
China April power shortages hit aluminium, lead demand-industry
HONG KONG, April 27 (Reuters) - An unexpected coal shortage for power plants in key Chinese industrial provinces in April has caused a drop in aluminium and lead demand by end users that threatens to shut some small smelters, while larger ones face lower prices, industry sources said on Wednesday.
China, the world's biggest market and maker for the two metals, normally hits peak electricity demand in the summer and can often face shortages, leading provincial officials to cut supplies to intensive energy users.
Europe aluminium premiums hit all-time peak
LONDON, April 26 (Reuters) - Premiums for duty-paid physical aluminium in Europe hit a record high this week, due to material being locked up in financing deals in London Metal Exchange (LME) warehouses or being in Detroit where it is hard to access.
Premiums for duty-paid metal in Rotterdam this week were at $210-235 a tonne over London Metal Exchange (LME) cash prices , traders said, the highest since Reuters records began in 1998.
Japan March aluminium shipments fall 8.5 pct yr/yr
TOKYO, April 27 (Reuters) - - Japanese shipments of aluminium products fell 8.5 percent in March from a year earlier, logging the first year-on-year decline in 16 months as last month's devastating earthquake took a toll on demand from industries across the board.
Shipments for the month fell to 170,878 tonnes as the March 11 earthquake and tsunami in northeastern Japan forced manufacturers to halt or slash production due to infrastructure damage, power cuts and shortages of parts, data provided by the Japan Aluminium Association showed on Wednesday.
Japan March copper exports fall 16 pct yr/yr
TOKYO, April 27 (Reuters) - - Japan's refined copper exports fell 16 percent in March from a year earlier to 50,258 tonnes for a sixth straight month of year-on-year declines, although the pace was slowing, Ministry of Finance data showed on Wednesday.
Demand for copper, used in utensils, construction materials and computer chips, is often seen as a gauge of economic activity.
Russia to peg nickel export duty to LME prices
MOSCOW, April 26 (Reuters) - Russia will peg its export tariff for nickel, currently fixed at 10 percent, to metal prices on the London Metals Exchange, an order published on a government web site showed on Tuesday.
At the current price of $26,450 per tonne, the new formula would mean a tariff increase of nearly 30 percent, or nearly $800 per tonne.
U.S. steelmakers see improved second quarter
NEW YORK, April 26 (Reuters) - Two major U.S. steelmakers reported contrasting quarterly results on Tuesday, but both gave positive outlooks for the industry as improving economic conditions boost demand and prices.
U.S. Steel Corp stock fell 4 percent to close at $49.72 as it reported a wider-than-expected loss in the first quarter, while AK Steel's shares rose 6.3 percent to $16.96 as its results beat Wall Street estimates.
Glencore holds up to 80 pct LME lead stocks -sources
LONDON, April 26 (Reuters) - Commodity trader Glencore has moved lead stocks to London Metal Exchange monitored warehouses to make evident the value of the holdings before its flotation, senior metal trading sources said.
LME data shows that one entity controls between 50 and 80 percent of inventories. While the exchange does not release the identity of the holder, traders say it is Glencore.
Japan March zinc exports fall 35 pct yr/yr
TOKYO, April 27 (Reuters) - Japan's refined zinc exports for March fell 34.6 percent from a year earlier to 7,444 tonnes, widening from February's year-on-year decrease of 9 percent, Ministry of Finance data showed on Wednesday.
The wider year-on-year drop in March reflected the impact from a March 11 earthquake which devastated northeast Japan and shut nearly 65 percent of the country's production capacity of zinc, used in automotive steel sheet and construction materials.
Japan rare earths imports from China jump 40 pct in March
TOKYO, April 27 (Reuters) - Japan's imports of rare earths from China rose 40 percent in March from the previous month, Ministry of Finance data showed, with some observers saying demand is so far unaffected by last month's devastating quake though the outlook remains murky.
Imports of rare earths from China stood at 1,603.6 tonnes in March, the data showed on Wednesday. That was up from 1,138 tonnes in February and close to January's 1,783 tonnes, indicating that inflows of the metals continued after Beijing's de-facto ban on shipments was lifted in November.
METALS-Copper falls on inventory rise, caution on Fed
LONDON, April 27 (Reuters) - Copper fell on Wednesday as inventories of the metal continued to build and as investors tread carefully ahead of a U.S. Federal Reserve decision on monetary policy, but a weaker dollar kept further losses in check.
Benchmark copper on the London Metal Exchange traded at $9,406 at 0921 GMT, from a close of $9,545 a tonne on Tuesday.
PRECIOUS-Silver steadies, gold perky ahead of Fed decision
LONDON, April 27 (Reuters) - Silver steadied on Wednesday, after its largest one-day slide in over a month the previous day, while gold profited from a weaker dollar which came under pressure ahead of a U.S. Federal Reserve interest rate decision.
The Fed is not expected to signal any rush to scale back its multi-billion dollar support mechanisms for the economy, so investors are waiting to hear more on the outlook for monetary policy from chairman Ben Bernanke when he gives the central bank's first post-decision news conference later in the day.
Gold Futures Surge to Record on Outlook for Sagging Dollar, Low U.S. Rates (Source: Bloomberg)
Gold futures rose to a record $1,530.30 an ounce on speculation that the Federal Reserve will be slow to raise U.S. borrowing costs, weakening the dollar and boosting the appeal of the metal as an alternative asset. The dollar fell to the lowest since December 2009 against the euro after the Fed kept borrowing costs at a record low and said it would continue $600 billion in bond purchases through June. The European Central Bank this month began raising rates to stem inflation.
Oil Rises a Second Day After U.S. Fuel Stockpiles Fall More Than Forecast (Source: Bloomberg)
Oil climbed for a second day in New York after a government report showed gasoline stockpiles in the U.S. declined more than analysts estimated to the lowest since August 2009. Futures advanced from the highest settlement in more than two weeks after the Energy Department said gasoline inventories fell 2.51 million barrels to 205.6 million, declining for the 10th week. Supplies were projected to drop 1 million barrels last week, according to analysts surveyed by Bloomberg News.
20110428 0935 Soy Oil & Palm Oil Related News.
Soy Oil chart reading : side way range bound.
Soybeans (Source: CME)
US soybean futures ended lower, in step with neighboring grain futures, succumbing to broader-based investor selling across the grain complex at CBOT. Further pressure was derived from demand, with traders looking for a continued pattern of slowing exports and soy crushing, as South America pumps fresh supplies onto the world market, analysts said. Trade was also focused on planting weather, with wet conditions in the eastern Midwest remaining a threat to early corn seedings, which could possibly shift some corn acreage to soybeans. Soybeans for July delivery dropped 4 3/4 cents to $13.84 1/2 a bushel.
Soybean Meal/Oil (Source: CME)
Soy product futures retreated in unison with soybeans, succumbing to the broader based weakness seen across the grain complex at CBOT. The lower theme was consistent, but soyoil garnered mild support from a rebound in crude oil to limit losses, analysts said. July soymeal finished down 0.7% at $361.80 per short ton, while July soyoil dropped 0.4% to 58.41 cents a pound.
Palm oil hits one-week low on technical selling
Malaysian palm oil futures touched a one-week low on Wednesday, tracking comparative oils and crude prices lower, with technical selling also weighing on prices. Benchmark July crude palm oil on Bursa Malaysia Derivatives Exchange closed at 3,277 Malaysian ringgit ($1,096) a tonne, its low for the day and the weakest since April 20.
Bad weather to cut EU 2011 rapeseed crop-Oil World
HAMBURG, April 26 (Reuters) - Poor weather may cut the European Union's 2011 rapeseed crop to a three-year low of 20.13 million tonnes from 20.59 million tonnes in 2010, Hamburg-based oilseeds analysts Oil World said on Tuesday.
A hard winter and a dry spring in several countries are pressuring yields, especially in Germany, which may lose its position as the EU's top rapeseed producer to France, the firm said.
Argentine soy crop forecasts too big -Oil World
HAMBURG, April 26 (Reuters) - Official forecasts of Argentina's 2011 soybean harvest are too large and do not pay enough attention to unfavourable weather damaging crops, Hamburg-based oilseeds analysts Oil World said on Tuesday.
Argentina's Agriculture Ministry last week raised its forecast of the country's 2011 soybean crop by 0.4 million tonnes to 50.4 million tonnes, still down from 53.9 million tonnes harvested in 2010.
Wednesday, April 27, 2011
20110427 1824 FCPO EOD Daily Chart Study.
FCPO closed : 3277, changed : -53 points, volume : lower.
Bollinger band reading : side way range bound little downside biased.
MACD Histrogram : weakening, buyer reducing position.
Support : 3270, 3250, 3200, 3150 level.
Resistance : 3300, 3350, 3420, 3450 level.
Comment :
FCPO closed recorded losses with improving volume participation while soy oil overnight closed little lower and currently trading weaker. Most commodities traded in small price movement as investors avoiding having large position ahead of U.S. Federal Reserve Chairman Ben Bernanke news conference.
Daily chart formed a down bar candle positioned below Bollinger band level after market opened little lower, moved downwards slowly to closed right at the the low of the day.
Chart reading suggesting a side way range bound little downside biased market development possibly testing lower support level with Federal Reserve holding the wild card.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20110427 1724 FKLI EOD Daily Chart Study.
Bollinger band reading : side way range bound.
MACD Histrogram : recovering, buyer and seller rolling over to next month.
Support : 1515, 1500, 1485, 1470 level.
Resistance : 1530, 1540, 1550, 1565 level.
Comment :
FKLI closed recorded loss with slightly lower volume transacted partially due to roll over activities doing 3 points discount compare to cash market that closed recorded small gain while regional markets traded mixed ahead of crucial U.S. federal reserve meeting.
Daily chart formed a down doji bar candle closed below middle Bollinger band level after market gap up, tested higher near resistance level and retreated lower surrendered all gains before closed rebounding slightly to closed off the low of the day.
Technical reading still suggesting a side way range bound market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20110427 1632 Global Market & Commodities Related News.
Dollar near 3-year lows on Fed view, stocks rise
HONG KONG, April 27 (Reuters) - The U.S. dollar plumbed a near 3-year low against other major currencies on Wednesday before a Federal Reserve decision that is expected to reinforce an ultra-easy policy stance and drive more capital to buoyant emerging Asian stock markets.
"Focus will be on the inaugural press conference and whether Bernanke is shifting along the dove-hawk scale," said Michael Sneyd, analyst at Societe Generale.
U.S. wheat extends losses, corn dips on Fed uncertainty
SINGAPORE, April 27 (Reuters) - U.S. wheat futures lost more ground on Wednesday, dropping almost 1 percent, while corn fell half a percent, ending a three-day rising streak on uncertainty ahead of a Federal Reserve news conference later in the day.
"There is uncertainty before the Fed press conference which is likely to affect the entire commodities complex," said Ker Chung Yang, an analyst at Phillip Futures in Singapore.
Russian wheat exports loom, may pressure prices
SINGAPORE, April 26 (Reuters) - Russia is likely to resume wheat exports later this year which will add to the global surplus of the grain, putting pressure on international prices, a U.S.-based agriculture consultant said on Tuesday.
Russia, typically the world's third largest wheat exporter, banned overseas grain sales last year after a devastating drought ravaged the Black Sea region, pushing wheat prices higher on the benchmark Chicago Board of Trade.
Brazil cocoa arrivals up 12 pct from year ago
BRASILIA, April 26 (Reuters) - Deliveries of cocoa to warehouses from the main growing regions in Brazil were up 12 percent from a year ago, with just one week left before the 2010/11 season ends, Bahia Commercial Association data showed on Tuesday.
Cocoa deliveries have slowed to a trickle in the lull between the end of the main crop and the start of the forthcoming mid crop which should begin harvesting in May or June depending on the region.
Morocco ends soft wheat imports as local crop surges
MEKNES, Morocco, April 26 (Reuters) - The Moroccan government has wrapped up its soft wheat imports a month ahead of schedule and will rely on a local cereals harvest it expects to rise by 18 percent, its top farming official said on Tuesday.
Speaking on the sidelines of a farming conference in the central city of Meknes, Agriculture Minister Aziz Akhennouch also told Reuters the agriculture-reliant economy "could add a few points of extra growth", after the announcement of a cereals harvest forecast of 8.8 million tonnes this year.
Ivory Coast cocoa trade, banking poised to restart
ABIDJAN, April 26 (Reuters) - Ivory Coast's cocoa and banking sectors are set to resume operations within days, officials said on Tuesday, signalling big steps toward restoring normality in the conflict-torn West African state.
A violent post-election power struggle paralyzed the economy of the world's top cocoa grower for months, leaving Ivorians to scramble for daily survival in the midst of heavy combat and sending shockwaves through global cocoa markets.
Crude futures fall ahead of Fed meet; dollar supports
SINGAPORE, April 27 (Reuters) - Crude futures fell on Wednesday as investors waited for details of the U.S. Federal Reserve's assessment of the economy and its monetary policy stance, while a weak dollar provided support.
"Investors are being very cautious ahead of the Fed meeting and prices are drawing support from a weak dollar," said Serene Lim, an analyst at ANZ. "Oil will continue to trade in this range till the outcome of the Fed meeting is known at least."
Obama adviser: Oil subsidies could go to trim deficit
WASHINGTON, April 26 (Reuters) - White House economic adviser Gene Sperling on Tuesday said subsidies to the oil and gas industry could be used for deficit reduction, and he said high fuel prices were not derailing U.S. economic recovery.
Sperling's comments were part of a broad push by the Obama administration to show it is tackling high gasoline prices that are weighing on consumers and threatening President Barack Obama's chances of re-election in 2012.
Obama urges oil producers to increase output
WASHINGTON, April 26 (Reuters) - President Barack Obama on Tuesday urged world oil producers to lift crude output, as he sought to deflect public anger over high gasoline prices that has hurt his popularity among voters.
U.S. motor fuel prices have become a heated political issue after pushing toward $4 a gallon. Gasoline futures hit 33-month highs on Tuesday.
Obama urges repeal of oil, gas tax breaks
WASHINGTON, April 26 (Reuters) - President Barack Obama, acknowledging high gasoline prices could sap the U.S. economy, on Tuesday urged Congress to end tax breaks for oil and gas companies and called on Republicans to back his plan.
But Republicans said the plan would "raise taxes and increase the price at the pump," indicating they opposed such action.
U.S. steelmakers see improved second quarter
NEW YORK, April 26 (Reuters) - Two major U.S. steelmakers reported contrasting quarterly results on Tuesday, but both gave positive outlooks for the industry as improving economic conditions boost demand and prices.
U.S. Steel Corp stock fell 4 percent to close at $49.72 as it reported a wider-than-expected loss in the first quarter, while AK Steel's shares rose 6.3 percent to $16.96 as its results beat Wall Street estimates.
Silver's versatility to help sustain rally
SINGAPORE, April 26 (Reuters) - Silver's near record high has done little to deter investors' interest in the metal, while demand from the industrial sector should ensure the rally isn't a temporary phenomenon.
A rush to buy physical silver this week, as prices came within cents of a record fix of $49.48 an ounce seen in 1980, shows that the metal's bright outlook could offset fears about a possible surplus this year.
LME copper eases, shrugs off weak dlr but Fed worries
SINGAPORE, April 27 (Reuters) - London copper extended losses on Wednesday, under pressure from a softer technical outlook, uncertainty ahead of a Federal Reserve news conference and weak data on the Japanese economy.
"I think the price direction of copper at the moment is driven by risk aversion in the market, which supports precious metals but compresses base metals and other riskier assets," Chen Xin Yi, Associate vice president at Barclays Capital said.
Japan March copper exports fall 16 pct yr/yr
TOKYO, April 27 (Reuters) - - Japan's refined copper exports fell 16 percent in March from a year earlier to 50,258 tonnes for a sixth straight month of year-on-year declines, although the pace was slowing, Ministry of Finance data showed on Wednesday.
Demand for copper, used in utensils, construction materials and computer chips, is often seen as a gauge of economic activity.
Indonesia's Timah says tin output may rise 5 pct this year
PANGKAL PINANG, Indonesia, April 26 (Reuters) - Production at Indonesia's state-owned Timah , the world's largest integrated tin miner, may rise 5 percent this year as the firm prepares to use a new dredging boat, the CEO said on Tuesday.
Timah said its current production forecast was 40,000 to 50,000 tonnes, Chief Executive Wachid Usman said at a tin conference.
Gold inches up, silver rebounds as Fed decision looms
SINGAPORE, April 27 (Reuters) - - Silver rebounded on Wednesday from sharp falls in the previous session and gold inched upwards as investors cautiously awaited the conclusion of the U.S. Federal Reserve's policy meeting while feeble sentiment in the dollar lent support.
"The market is a bit mixed ahead of the Fed meeting, which will influence the move of the dollar and precious metals," said Peter Fung, head of dealing at Wing Fung Precious Metals based in Hong Kong.
HONG KONG, April 27 (Reuters) - The U.S. dollar plumbed a near 3-year low against other major currencies on Wednesday before a Federal Reserve decision that is expected to reinforce an ultra-easy policy stance and drive more capital to buoyant emerging Asian stock markets.
"Focus will be on the inaugural press conference and whether Bernanke is shifting along the dove-hawk scale," said Michael Sneyd, analyst at Societe Generale.
U.S. wheat extends losses, corn dips on Fed uncertainty
SINGAPORE, April 27 (Reuters) - U.S. wheat futures lost more ground on Wednesday, dropping almost 1 percent, while corn fell half a percent, ending a three-day rising streak on uncertainty ahead of a Federal Reserve news conference later in the day.
"There is uncertainty before the Fed press conference which is likely to affect the entire commodities complex," said Ker Chung Yang, an analyst at Phillip Futures in Singapore.
Russian wheat exports loom, may pressure prices
SINGAPORE, April 26 (Reuters) - Russia is likely to resume wheat exports later this year which will add to the global surplus of the grain, putting pressure on international prices, a U.S.-based agriculture consultant said on Tuesday.
Russia, typically the world's third largest wheat exporter, banned overseas grain sales last year after a devastating drought ravaged the Black Sea region, pushing wheat prices higher on the benchmark Chicago Board of Trade.
Brazil cocoa arrivals up 12 pct from year ago
BRASILIA, April 26 (Reuters) - Deliveries of cocoa to warehouses from the main growing regions in Brazil were up 12 percent from a year ago, with just one week left before the 2010/11 season ends, Bahia Commercial Association data showed on Tuesday.
Cocoa deliveries have slowed to a trickle in the lull between the end of the main crop and the start of the forthcoming mid crop which should begin harvesting in May or June depending on the region.
Morocco ends soft wheat imports as local crop surges
MEKNES, Morocco, April 26 (Reuters) - The Moroccan government has wrapped up its soft wheat imports a month ahead of schedule and will rely on a local cereals harvest it expects to rise by 18 percent, its top farming official said on Tuesday.
Speaking on the sidelines of a farming conference in the central city of Meknes, Agriculture Minister Aziz Akhennouch also told Reuters the agriculture-reliant economy "could add a few points of extra growth", after the announcement of a cereals harvest forecast of 8.8 million tonnes this year.
Ivory Coast cocoa trade, banking poised to restart
ABIDJAN, April 26 (Reuters) - Ivory Coast's cocoa and banking sectors are set to resume operations within days, officials said on Tuesday, signalling big steps toward restoring normality in the conflict-torn West African state.
A violent post-election power struggle paralyzed the economy of the world's top cocoa grower for months, leaving Ivorians to scramble for daily survival in the midst of heavy combat and sending shockwaves through global cocoa markets.
Crude futures fall ahead of Fed meet; dollar supports
SINGAPORE, April 27 (Reuters) - Crude futures fell on Wednesday as investors waited for details of the U.S. Federal Reserve's assessment of the economy and its monetary policy stance, while a weak dollar provided support.
"Investors are being very cautious ahead of the Fed meeting and prices are drawing support from a weak dollar," said Serene Lim, an analyst at ANZ. "Oil will continue to trade in this range till the outcome of the Fed meeting is known at least."
Obama adviser: Oil subsidies could go to trim deficit
WASHINGTON, April 26 (Reuters) - White House economic adviser Gene Sperling on Tuesday said subsidies to the oil and gas industry could be used for deficit reduction, and he said high fuel prices were not derailing U.S. economic recovery.
Sperling's comments were part of a broad push by the Obama administration to show it is tackling high gasoline prices that are weighing on consumers and threatening President Barack Obama's chances of re-election in 2012.
Obama urges oil producers to increase output
WASHINGTON, April 26 (Reuters) - President Barack Obama on Tuesday urged world oil producers to lift crude output, as he sought to deflect public anger over high gasoline prices that has hurt his popularity among voters.
U.S. motor fuel prices have become a heated political issue after pushing toward $4 a gallon. Gasoline futures hit 33-month highs on Tuesday.
Obama urges repeal of oil, gas tax breaks
WASHINGTON, April 26 (Reuters) - President Barack Obama, acknowledging high gasoline prices could sap the U.S. economy, on Tuesday urged Congress to end tax breaks for oil and gas companies and called on Republicans to back his plan.
But Republicans said the plan would "raise taxes and increase the price at the pump," indicating they opposed such action.
U.S. steelmakers see improved second quarter
NEW YORK, April 26 (Reuters) - Two major U.S. steelmakers reported contrasting quarterly results on Tuesday, but both gave positive outlooks for the industry as improving economic conditions boost demand and prices.
U.S. Steel Corp stock fell 4 percent to close at $49.72 as it reported a wider-than-expected loss in the first quarter, while AK Steel's shares rose 6.3 percent to $16.96 as its results beat Wall Street estimates.
Silver's versatility to help sustain rally
SINGAPORE, April 26 (Reuters) - Silver's near record high has done little to deter investors' interest in the metal, while demand from the industrial sector should ensure the rally isn't a temporary phenomenon.
A rush to buy physical silver this week, as prices came within cents of a record fix of $49.48 an ounce seen in 1980, shows that the metal's bright outlook could offset fears about a possible surplus this year.
LME copper eases, shrugs off weak dlr but Fed worries
SINGAPORE, April 27 (Reuters) - London copper extended losses on Wednesday, under pressure from a softer technical outlook, uncertainty ahead of a Federal Reserve news conference and weak data on the Japanese economy.
"I think the price direction of copper at the moment is driven by risk aversion in the market, which supports precious metals but compresses base metals and other riskier assets," Chen Xin Yi, Associate vice president at Barclays Capital said.
Japan March copper exports fall 16 pct yr/yr
TOKYO, April 27 (Reuters) - - Japan's refined copper exports fell 16 percent in March from a year earlier to 50,258 tonnes for a sixth straight month of year-on-year declines, although the pace was slowing, Ministry of Finance data showed on Wednesday.
Demand for copper, used in utensils, construction materials and computer chips, is often seen as a gauge of economic activity.
Indonesia's Timah says tin output may rise 5 pct this year
PANGKAL PINANG, Indonesia, April 26 (Reuters) - Production at Indonesia's state-owned Timah , the world's largest integrated tin miner, may rise 5 percent this year as the firm prepares to use a new dredging boat, the CEO said on Tuesday.
Timah said its current production forecast was 40,000 to 50,000 tonnes, Chief Executive Wachid Usman said at a tin conference.
Gold inches up, silver rebounds as Fed decision looms
SINGAPORE, April 27 (Reuters) - - Silver rebounded on Wednesday from sharp falls in the previous session and gold inched upwards as investors cautiously awaited the conclusion of the U.S. Federal Reserve's policy meeting while feeble sentiment in the dollar lent support.
"The market is a bit mixed ahead of the Fed meeting, which will influence the move of the dollar and precious metals," said Peter Fung, head of dealing at Wing Fung Precious Metals based in Hong Kong.
20110427 1134 Global Market & Commodities Related News.
GLOBAL MARKETS: Dollar hits 3-year low before Fed, Asia stocks up
HONG KONG, April 27 (Reuters) - The U.S. dollar plumbed a near 3-year low against other major currencies on Wednesday before a Federal Reserve decision where it is expected to reinforce its ultra-easy policy stance while stocks in Asia's developed markets rose, tracking a strong close on Wall Street.
"Focus will be on the inaugural press conference and whether Bernanke is shifting along the dove-hawk scale," said Michael Sneyd, analyst at Societe Generale.
OIL: Brent edges up eyeing Fed meeting, weak dollar
NEW YORK, April 26 (Reuters) - Brent crude edged up in volatile trading while U.S. crude ended little changed on Tuesday as investors eyed a U.S. Federal Reserve two-day policy meeting for any signal of a change in monetary policy.
"This week, it will be all about the Fed meeting. Volume and volatility will come back after the meeting," said Olivier Jakob of Petromatrix in Switzerland.
U.S. crude stocks seen up on higher imports
BANGALORE/NEW YORK, April 26 (Reuters) - U.S. crude oil stockpiles are expected to have risen last week, with crude imports exceeding demand from refineries, an expanded Reuters poll ahead of weekly inventory reports showed on Tuesday.
The increase follows an unexpected drawdown the week before, which was the first decline in domestic crude stocks in seven weeks, according to the poll of 13 analysts.
Obama urges oil producers to increase output
WASHINGTON, April 26 (Reuters) - President Barack Obama on Tuesday urged world oil producers to lift crude output, as he sought to deflect public anger over high gasoline prices that has hurt his popularity among voters.
U.S. motor fuel prices have become a heated political issue after pushing toward $4 a gallon. Gasoline futures hit 33-month highs on Tuesday.
NATURAL GAS: Natural gas ends down slightly on profit taking
NEW YORK, April 26 (Reuters) - U.S. natural gas futures ended slightly lower on Tuesday, lightly pressured by milder Northeast and Midwest weather this week and profit taking ahead of the May contract expiration on Wednesday.
"We came off a little ahead of (options and futures) expiration. Injections (into storage) are starting to pick up, and it's been hot in Texas, but the current 15-day (forecast) doesn't look as hot," a Texas-based trader said, noting recent heat in the South has boosted cooling demand.
EURO COAL: June ARA trades at $127/T, China prices rise
LONDON, April 26 (Reuters) - Prompt European delivered physical coal values fell by around $2.00 a tonne on Tuesday in illiquid trading.
"The dollar's coming under pressure again, which can only help prices but fundamentally not a lot has changed in the past week," one European trader said.
COMMODITIES: Silver, wheat tumble, but most markets await Fed
NEW YORK, April 26 (Reuters) - Silver and wheat tumbled on Tuesday after rallying a day ago but most commodities saw small price moves as investors avoided big bets ahead of a news conference by U.S. Federal Reserve Chairman Ben Bernanke.
"I think there's plenty of nervousness in the market and any upside activity is going to be tempered," said Sterling Smith, who follows a wide range of commodities for Country Hedging Inc. in St. Paul, Minnesota.
HONG KONG, April 27 (Reuters) - The U.S. dollar plumbed a near 3-year low against other major currencies on Wednesday before a Federal Reserve decision where it is expected to reinforce its ultra-easy policy stance while stocks in Asia's developed markets rose, tracking a strong close on Wall Street.
"Focus will be on the inaugural press conference and whether Bernanke is shifting along the dove-hawk scale," said Michael Sneyd, analyst at Societe Generale.
OIL: Brent edges up eyeing Fed meeting, weak dollar
NEW YORK, April 26 (Reuters) - Brent crude edged up in volatile trading while U.S. crude ended little changed on Tuesday as investors eyed a U.S. Federal Reserve two-day policy meeting for any signal of a change in monetary policy.
"This week, it will be all about the Fed meeting. Volume and volatility will come back after the meeting," said Olivier Jakob of Petromatrix in Switzerland.
U.S. crude stocks seen up on higher imports
BANGALORE/NEW YORK, April 26 (Reuters) - U.S. crude oil stockpiles are expected to have risen last week, with crude imports exceeding demand from refineries, an expanded Reuters poll ahead of weekly inventory reports showed on Tuesday.
The increase follows an unexpected drawdown the week before, which was the first decline in domestic crude stocks in seven weeks, according to the poll of 13 analysts.
Obama urges oil producers to increase output
WASHINGTON, April 26 (Reuters) - President Barack Obama on Tuesday urged world oil producers to lift crude output, as he sought to deflect public anger over high gasoline prices that has hurt his popularity among voters.
U.S. motor fuel prices have become a heated political issue after pushing toward $4 a gallon. Gasoline futures hit 33-month highs on Tuesday.
NATURAL GAS: Natural gas ends down slightly on profit taking
NEW YORK, April 26 (Reuters) - U.S. natural gas futures ended slightly lower on Tuesday, lightly pressured by milder Northeast and Midwest weather this week and profit taking ahead of the May contract expiration on Wednesday.
"We came off a little ahead of (options and futures) expiration. Injections (into storage) are starting to pick up, and it's been hot in Texas, but the current 15-day (forecast) doesn't look as hot," a Texas-based trader said, noting recent heat in the South has boosted cooling demand.
EURO COAL: June ARA trades at $127/T, China prices rise
LONDON, April 26 (Reuters) - Prompt European delivered physical coal values fell by around $2.00 a tonne on Tuesday in illiquid trading.
"The dollar's coming under pressure again, which can only help prices but fundamentally not a lot has changed in the past week," one European trader said.
COMMODITIES: Silver, wheat tumble, but most markets await Fed
NEW YORK, April 26 (Reuters) - Silver and wheat tumbled on Tuesday after rallying a day ago but most commodities saw small price moves as investors avoided big bets ahead of a news conference by U.S. Federal Reserve Chairman Ben Bernanke.
"I think there's plenty of nervousness in the market and any upside activity is going to be tempered," said Sterling Smith, who follows a wide range of commodities for Country Hedging Inc. in St. Paul, Minnesota.
20110427 1025 Global Economic Related News.
Singapore: Production surges on drug, electronics output
Singapore’s industrial output grew at the fastest pace in four months as manufacturers produced more pharmaceuticals and computer parts, bolstering an economic expansion that has allowed the central bank to tighten policy. Manufacturing which accounts for about a quarter of the economy, climbed 22% in March from a year earlier after a revised 4.7% increase in February, the economic development board said. (Starbiz)
China: Denies raising capital requirement
China has denied tightening capital rules for its five biggest banks following media reports that it had lifted the capital requirement above a minimum mark. The denial came after Bloomberg said China had increased the capital adequacy ratio for its top banks to as high as 11.8% for the year, above an initial minimum level of 11.5% to guard against risks in the banking sector. (Starbiz)
S. Korea: Growth accelerates in 1Q11, adding price pressure. Gross domestic product rose 1.4% QoQ from the previous quarter, when it advanced 0.5% QoQ, the Bank of Korea said. The economy grew 4.2% YoY in 1Q11. (Source: Bloomberg)
Euro: Debt reaches record 85.1% of GDP as crisis festers
Euro-area debt reached a record in 2010, making it harder for the bloc’s better-off countries to bear the costs of the fiscal crisis triggered by Greece. Debt rose in all 16 countries that were using the euro last year, lifting the bloc’s average to 85.1% of gross domestic product from 79.3% in 2009, the European Union’s statistics office in Luxembourg said today. Greece’s deficit topped expectations and debt ballooned to 142.8% of GDP, the highest in the euro’s 12-year history. Ireland’s debt surged the most, by 30.6% pts to 96.2% of GDP. (Bloomberg)
US: Home prices decrease, approach recession low
Residential real-estate prices dropped in the 12 months to February by the most in more than a year, putting the market on the verge of eclipsing the nadir reached during the U.S. recession. The S&P/Case-Shiller index of property values in 20 cities fell 3.3% from February 2010, the biggest year-over-year decline since November 2009, the group said today in New York. At 139.27, the gauge was just shy of the six-year low of 139.26 in April 2009, two months before the economic slump ended. Values will probably keep falling as foreclosures swell the supply of unsold homes, which means the construction industry will take time to recover. Another report showed consumer confidence climbed more than forecast this month, making it more likely that spending will keep growing as the economic expansion creates jobs and stock prices advance. (Bloomberg)
U.S: Consumer confidence in April increases more than forecast. The Conference Board's confidence index rose to 65.4 from a revised 63.8 reading in March, figures from the New York-based private research group showed. (Source: Bloomberg)
Singapore’s industrial output grew at the fastest pace in four months as manufacturers produced more pharmaceuticals and computer parts, bolstering an economic expansion that has allowed the central bank to tighten policy. Manufacturing which accounts for about a quarter of the economy, climbed 22% in March from a year earlier after a revised 4.7% increase in February, the economic development board said. (Starbiz)
China: Denies raising capital requirement
China has denied tightening capital rules for its five biggest banks following media reports that it had lifted the capital requirement above a minimum mark. The denial came after Bloomberg said China had increased the capital adequacy ratio for its top banks to as high as 11.8% for the year, above an initial minimum level of 11.5% to guard against risks in the banking sector. (Starbiz)
S. Korea: Growth accelerates in 1Q11, adding price pressure. Gross domestic product rose 1.4% QoQ from the previous quarter, when it advanced 0.5% QoQ, the Bank of Korea said. The economy grew 4.2% YoY in 1Q11. (Source: Bloomberg)
Euro: Debt reaches record 85.1% of GDP as crisis festers
Euro-area debt reached a record in 2010, making it harder for the bloc’s better-off countries to bear the costs of the fiscal crisis triggered by Greece. Debt rose in all 16 countries that were using the euro last year, lifting the bloc’s average to 85.1% of gross domestic product from 79.3% in 2009, the European Union’s statistics office in Luxembourg said today. Greece’s deficit topped expectations and debt ballooned to 142.8% of GDP, the highest in the euro’s 12-year history. Ireland’s debt surged the most, by 30.6% pts to 96.2% of GDP. (Bloomberg)
US: Home prices decrease, approach recession low
Residential real-estate prices dropped in the 12 months to February by the most in more than a year, putting the market on the verge of eclipsing the nadir reached during the U.S. recession. The S&P/Case-Shiller index of property values in 20 cities fell 3.3% from February 2010, the biggest year-over-year decline since November 2009, the group said today in New York. At 139.27, the gauge was just shy of the six-year low of 139.26 in April 2009, two months before the economic slump ended. Values will probably keep falling as foreclosures swell the supply of unsold homes, which means the construction industry will take time to recover. Another report showed consumer confidence climbed more than forecast this month, making it more likely that spending will keep growing as the economic expansion creates jobs and stock prices advance. (Bloomberg)
U.S: Consumer confidence in April increases more than forecast. The Conference Board's confidence index rose to 65.4 from a revised 63.8 reading in March, figures from the New York-based private research group showed. (Source: Bloomberg)
20110427 1024 Malaysia Corporate Related News.
KLCI chart reading : side way range bound.
Cash call for email project
Tricubes Bhd is going to make a cash call to fund the controversial myemail project that will require a RM50m investment over 10 years. The Edge Financial Daily learnt that Tricubes will propose a rights issue to raise between RM5m and RM10m from existing shareholders. The much publicized project has to date attracted RM5.3m from Malaysian Venture Capital Management Bhd (Mavcap) for its initial investment. The funding from Mavcap will be used towards infrastructure cost, marketing and creating awareness. (Financial Daily)
CIMB Niaga assets surge 30%
CIMB Group’s Indonesian subsidiary PT Bank CIMB Niaga’s total net assets as at 31 March 2011, were up 30% to Rp149.05trn (RM51.6bn) from Rp114.59trn in the same period last year. CIMB said in a statement yesterday the increase would strengthen its position as the fifth largest bank in Indonesia by assets. The bank also reported that its consolidated net profit for the period jumped to Rp727.53bn from Rp524.18bn in the same period last year, representing an increase of 39%. (Financial Daily)
Kencana wins RM208m Kebabangan contract
Kencana Petroleum Bhd has secured a RM208m contract for the fabrication of a substructure for the Kebabangan northern hub development project off the coast of Sabah. Under the contract, Kencana HL Sdn Bhd is to undertake the construction engineering, procurement, fabrication, inspection testing and commissioning, loadouut and seafastening (EPC), according to an announcement to Bursa Malaysia yesterday.(Financial Daily)
Carlsberg to raise prices slightly
Carlsberg Brewery Malaysia Bhd is planning to slightly increase the price of its beer products in May. Managing director Soren Ravn said the company would increase prices by an average of less than 3% across its beer product range due to rising raw material and operating cost. “The increase in price is not huge, and is in line with inflation, and this reflects our higher input costs. In the next three to six months, we will appropriately hedge raw material prices”, Ravn said after the company’s AGM yesterday. (StarBiz)
Yeo Hiap Seng Q1 net profit up 35.7%
Yeo Hiap Seng (M) Bhd’s, net profit for its quarter ended 31 March 2011 was up 35.7% to RM7.6m y-o-y, supported by higher sales from Yeo’s core products. The company in a filing with Bursa Malaysia yesterday said it recorded a marginal increase in revenue to RM151.6m for the quarter under review from RM151.2m previously.(StarBiz)
YHS: To consolidate plants. Yeo Hiap Seng (M) Bhd (YHS) will consolidate its factories in Shah Alam and Petaling Jaya to improve efficiencies and partially mitigate the effects of rising raw material prices. YHS also wants to introduce a new and less sweetened range of beverages to response to sugar price spikes. (Source: The Edge Financial Daily)
AirAsia Q1 traffic up 19.3%
AirAsia Bhd, South-East Asia’s biggest budge carrier, said it carried 19.3% more passengers in the first quarter of 2011 compared with a year earlier. Its load factor rose to 81% in the January to March period from 75% in the previous corresponding period, AirAsia said in an e-mailed statement yesterday. (StarBiz)
Proton Edar foresees delivery delay of cars
Proton Edar SB expects a delay in the delivery of Proton cars to buyers due to the snowball effect of the double disasters of earthquake and tsunami that hit Japan last month. Its general manage for marketing, Sidik Abdul Hamid, however, was not at liberty to disclose the actual timeframe of delay, saying that it all depends on the delivery timing of certain raw materials and parts from Japan. (Malaysan Reseve)
Proton: Banks on Saga and Persona. Proton Holdings Bhd is banking on Saga and Persona to drive up sales this year as it seeks to topple rival Perusahaan Otomobil Kedua Sdn Bhd (Perodua) as the biggest carmaker in the country. Proton hopes to sell 85,000 units of Saga and 40,000 units of Persona while the total sales was targeted at close to 170,000 units this year. (Source: The Sun)
Construction: Chinese companies may bid for MRT job. Chinese Premier Wen Jiabaos visit is expected to pave the way for them to participate in the RM40b MRT project as they have the financial muscle to go up against the Gamuda/MMC Corp joint venture and China is home to some of the most advanced railway systems in the world. (Source: The Edge Financial Daily)
Infrastructure: Sarawak to build 500km roads by end-2012. Under the National Key Result Area (NKRA) for a three-year period beginning last year, Manyin said Sarawak was allocated RM2b to build roads. Sarawak managed to complete 240km of new roads last year. (Source: The Edge)
20110427 1018 Global Market Related News.
DJIA chart reading : upside biased with possible pullback correction.
Hang Seng chart reading : correction range bound little upside biased.
U.S. Stocks Extend Gains After Consumer Confidence Data Tops Estimates (Source: Bloomberg)
U.S. stocks extended gains after a gauge of consumer confidence exceeded economists’ forecasts, building on an earlier rally triggered by higher-than-estimated earnings. The Standard & Poor’s 500 Index rose 0.5 percent to 1,341.54 at 10:03 a.m. in New York. The Dow Jones Industrial Average advanced 52.07 points, or 0.4 percent, to 12,531.95 . The Conference Board’s confidence index rose to 65.4 from a revised 63.8 reading in March, figures from the New York-based private research group showed today. The median forecast of economists surveyed by Bloomberg News called projected an advance to 64.5.
Asian Stocks Rise as U.S. Consumer Confidence Gains; Canon Jumps (Source: Bloomberg)
Asian stocks rose, with the regional benchmark index heading for its highest close in almost two months, after a report showed U.S. consumer confidence increased, boosting the outlook for Asian exporters. Samsung Electronics Co., Asia’s largest maker of chips, flat screens and mobile phones, gained 3 percent in Seoul. Canon Inc., the world’s biggest maker of cameras, climbed 5.4 percent in Tokyo. Origin Energy Ltd., Australia’s No. 1 energy retailer, increased 4.3 percent in Sydney after it and partner ConocoPhillips signed an agreement last week to supply liquefied natural gas to China Petrochemical Corp. Australia resumed trading today following holidays.
Treasuries Snap Three-Day Gain Before Durable Goods Data, Five-Year Sale (Source: Bloomberg)
Treasuries snapped a three-day gain before data that may show durable goods orders rose and as the government prepares to sell $35 billion in five-year notes. Federal Reserve Chairman Ben S. Bernanke is scheduled to speak to reporters at the conclusion of a policy meeting today as the end of the central bank’s second round of bond buying, known as quantitative easing or QE2, approaches in June. The Fed has kept demand for government bonds “deceptively” high, Pacific Investment Management Co., which runs the world’s biggest bond fund, said in a report.
Geithner Says U.S. Needs ‘Credible Strategy’ for Reducing Budget Deficits (Source: Bloomberg)
Treasury Secretary Timothy F. Geithner said the U.S. needs a “credible strategy” to reduce its budget deficits over time, without moving too quickly and choking off economic recovery. “You have to commit to bring the budget deficit down to a level that will put our overall debt burden on a declining path as a share of the economy,” Geithner said today in remarks at the Council on Foreign Relations in New York. The Obama administration wants to move onto that path by about 2015, he said.
Consumer Confidence in U.S. Increases More Than Estimated Amid Job Gains (Source: Bloomberg)
Confidence among U.S. consumers increased more than forecast in April, signaling the improving labor market is helping Americans weather rising fuel costs. The Conference Board’s confidence index rose to 65.4 from a revised 63.8 reading in March, figures from the New York-based private research group showed today. The median forecast of economists surveyed by Bloomberg News called projected an advance to 64.5.
Geithner Says U.S. Will Never Weaken Dollar to Gain an Advantage in Trade (Source: Bloomberg)
Treasury Secretary Timothy F. Geithner today reaffirmed the U.S. commitment to a “strong dollar” and said the country won’t weaken the currency to gain an advantage over its trading partners. “Our policy has been and will always be, as long as at least I’m in this job, that a strong dollar is in our interest as a country,” Geithner said in remarks at the Council on Foreign Relations in New York. “We will never embrace a strategy of trying to weaken our currency to try to gain economic advantage.”
Home Prices in 20 U.S. Cities Drop Most in More Than Year on Foreclosures (Source: Bloomberg)
Residential real-estate prices dropped in the 12 months to February by the most in more than a year, putting the market on the verge of eclipsing the nadir reached during the U.S. recession.
Dollar Declines to Lowest Versus Euro Since December 2009 on Rate Outlook (Source: Bloomberg)
The dollar fell to its lowest level against the euro since December 2009 on speculation the Federal Reserve will keep interest rates low. The U.S. currency dropped to as low as $1.4702 per euro before trading at $1.4681 as of 7:26 a.m. in Tokyo.
Dollar Falls to 16-Month Low Against Euro Amid Fed Speculation (Source: Bloomberg)
The dollar fell to a 16-month low versus the euro on speculation the Federal Reserve will consider further easing measures to support the U.S. economy after its bond-buying program expires in June. The euro advanced for a fourth day against the yen before a report that economists say will show the region’s industrial orders increased, adding to evidence that the European Central Bank may raise interest rates. The Australian dollar climbed to a record before a government report forecast to show inflation quickened in the first quarter.
S&P 500 Index Rises to Highest Level Since June 2008 on Improving Earnings (Source: Bloomberg)
U.S. stocks rose, sending the Standard & Poor’s 500 Index to its highest level since June 2008, as earnings at companies from 3M Co. (MMM) to United Parcel Service Inc. (UPS) and Ford Motor Co. (F) topped analysts’ estimates. 3M, the maker of products including Scotch tape, rose 1.9 percent. UPS, the world’s largest package-delivery company and considered a proxy for economic growth, added 0.9 percent after also raising its earnings forecast. Ford, the second-largest U.S. automaker, gained 0.8 percent after reporting a 22 percent jump in profit as vehicle prices increased. Delta Air Lines Inc. (DAL) soared 11 percent as the second-biggest carrier reported a smaller loss than analysts estimated amid higher fares.
US new home sales rebound, market still seen weak
WASHINGTON, April 25 (Reuters) - Sales of new U.S. homes rose in March and the number of new properties on the market was its lowest since the 1960s, but
further gains will be hampered by the broader property glut.
Single-family home sales rose 11.1 percent to a seasonally adjusted annual rate of 300,000, the Commerce Department said on Monday, up from a near record low
pace of 270,000 in February when harsh winter weather hit the economy.
China unveils new wanted, not-wanted industry list
BEIJING, April 25 (Reuters) - China's economic planning agency on Monday published a new list of industries that it would encourage, restrict or ban, a
blueprint that could have a far-reaching impact on investment activity China over the coming years.
The list will serve as a guideline for Chinese regulators in making policies on tax, bank credit, land and trade, and will also be a reference for Beijing to
decide which foreign investors are welcomed.
China Said to Raise Biggest Banks’ Capital Adequacy Targets (Source: Bloomberg)
China’s banking regulator set capital targets for the nation’s five biggest lenders above the minimum 11.5 percent ratio amid concern that credit risks may rise, three people with knowledge of the matter said. Industrial & Commercial Bank of China (601398) Ltd., the world’s largest lender, and three rivals were told last month to maintain capital adequacy ratios of at least 11.8 percent in 2011, one of the people said, declining to be identified as the plan isn’t public. Agricultural Bank of China Ltd. (1288), the nation’s fourth biggest, should target 11.7 percent, two of them said.
Japanese Stocks Rise on U.S. Confidence, Quake Recovery Outlook (Source: Bloomberg)
The Nikkei 225 Stock Average rose for the first time in four days after U.S. consumer confidence gained and Japan’s government said 90 percent of the country’s earthquake-stricken factories will resume production by July. Advantest Corp., the world’s biggest maker of tools used to test memory chips, climbed 1.6 percent. Canon Inc., which has lost 13 percent this year, jumped after Nomura Holdings Inc. said the company’s mid-term growth prospects are “positive.” Kao Corp., Japan’s biggest maker of household products, advanced 1.9 percent after the company forecast a 13 percent gain in profit this fiscal year.
Japan’s Retail Sales Slump Most in 13 Years After Earthquake (Source: Bloomberg)
Japan’s retail sales tumbled the most in 13 years last month as the nation’s record earthquake shut stores and discouraged households from spending money.
South Korea’s Growth Accelerates, Adding Price Pressure (Source: Bloomberg)
South Korea’s economic growth accelerated in the first quarter on exports, bolstering the case for the central bank to raise interest rates to damp inflation.
Euro-Area Governments' Debt Reaches Record 85.1% of GDP as Crisis Festers (Source: Bloomberg)
Euro-area debt reached a record in 2010, making it harder for the bloc’s better-off countries to bear the costs of the fiscal crisis triggered by Greece. Debt rose in all 16 countries that were using the euro last year, lifting the bloc’s average to 85.1 percent of gross domestic product from 79.3 percent in 2009, the European Union’s statistics office in Luxembourg said today.
Greek Deficit Tops Forecasts as Merkel Aide Says Debt Must Be Restructured (Source: Bloomberg)
Greece’s budget deficit exceeded goverment estimates and the euro area’s overall debt reached a record, narrowing Europe’s options for putting an end to the fiscal crisis. Greece’s shortfall was 10.5 percent of gross domestic product in 2010, higher than a 9.4 percent estimate made by the Greek government in February, official European Union figures showed today.
Greek 2010 Budget Gap Wider Than Estimated as Euro-Area Debt Hits Record (Source: Bloomberg)
Greece’s 2010 budget gap was more than a percentage point wider than the government estimated after a review by Europe’s statistics agency, the latest blow to the nation’s finances as it seeks to avoid a debt restructuring. Last year’s shortfall was 10.5 percent of gross domestic product, compared with 15.4 percent of GDP in 2009, Eurostat said in a statement today from Luxembourg. In February, the Greek government had said it met its revised target for a 9.4 percent deficit in 2010.
Bollard May Keep New Zealand Rate at Record Low to Revive Growth (Source: Bloomberg)
New Zealand will probably keep interest rates at a record low until at least the second half of the year to spur an economic recovery from the nation’s deadliest earthquake in 80 years.
Auto production faces bigger hit after Japan quake
TOKYO, April 25 (Reuters) - Toyota Motor Co may slip to No. 3 in the automaker production rankings behind General Motors and Volkswagen due to Japan's
earthquake and nuclear crisis, which slashed local output by almost two-thirds in March alone.
A shortage of parts in the wake of the March 11 earthquake and tsunami has savaged Japan's auto sector supply chain, while damage to a major nuclear plant
has disrupted power supplies.
FOREX-Euro hits 16-mo high; no respite in sight for dollar
NEW YORK, April 26 (Reuters) - The euro hit a 16-month high against the dollar on Tuesday, with no respite in sight seen for the greenback if the U.S.
Federal Reserve keeps monetary policy accommodative.
The Federal Open Market Committee, the Fed's policy making arm, starts its two-day meeting on Tuesday. The post-meeting news conference by Fed Chairman Ben
Bernanke on Wednesday -- the first regularly scheduled news briefing by a Fed chief in the U.S. central bank's 97-year history -- will be closely watched to see how the Fed plans to exit from its ultra-loose policy.
Euro up before Fed, silver slide ripples out
The euro jumped ahead of a U.S. Federal Reserve meeting expected to give no hint of looming policy tightening while silver tumbled after soaring to near record highs, dragging gold and oil with it. The eurorose to a 16-month high against an under-pressure dollar, climbing around half a percent to $1.4653, with expectations the Fed will keep policy loose likely to see it hover near recent peaks.
20110427 1015 Global Commodities Related News.
Corn (Source: CME)
US corn futures finish mixed, with deferred contracts slipping on profit-taking after climbing recently on worries about planting delays. Weather conditions continue to look unfavorable for planting, as the Midwest is expected to remain cool and wet. The USDA on Monday confirmed planting was behind schedule. "Even though the news was kind of bullish overnight, you don't go up every day," says Jack Scoville of Price Futures Group. CBOT July corn rises 4 1/4c to $7.72 3/4 a bushel; December corn, which represents the crop that is being sown for harvest next fall, lost 5 3/4c to $6.75 3/4.
Wheat (Source: CME)
US wheat futures finish lower on profit-taking as markets pull back after climbing more than 3% yesterday. Prices retreated even though forecasts show dry weather will continue to stress winter wheat in southern US Plains and precipitation will delay planting of spring wheat in northern Plains. USDA yesterday lowered its crop rating for winter wheat and confirmed planting progress was lagging. CBOT July wheat falls 14 1/4c to $8.47 a bushel; KCBT July drops 10 1/4c to $9.60 3/4; MGE July loses 7 3/4c to $9.81 1/2.
Oats (Source: CME)
Oat futures ended lower, succumbing to profit taking pressure following recent advances. However, losses were limited by the ongoing threat of wet, cold weather in the northern plains and Canada causing planting delays. Oats for July delivery dropped 1.8% to $4.00 a bushel.
Rice (Source: CME)
US rice futures finish lower, giving back some recent gains. It seems as though worries about rains delaying planting in the US, which supported the market recently, have "run out steam," says Jack Scoville at Price Futures Group. Planting was 46% complete as of Sunday, below the average of 53% for that time of year, according to government data. CBOT July rice slides 14 1/2c to $14.66 1/2 per hundredweight.
U.S. corn planting seen 13 pct done, behind schedule
CHICAGO, April 25 (Reuters) - Damp soil and cold weather around the U.S. Midwest have likely put farmers well behind their ideal corn planting schedule and left them hoping for a quick warm-up as the deadline for optimal seeding approaches.
The U.S. Agriculture Department's weekly crop progress report on Monday afternoon is expected to show that farmers had planted 13 percent of their anticipated corn acreage as of April 24, based on an average of estimates given by nine analysts.
China To Limit Corn Use In Biofuel, Other Non-Feed Projects (Source: CME)
China will limit alcohol, biofuel and other non-animal-feed projects that use grain and edible oils as raw materials in an effort to secure grain supplies, China's top economic planner said. Corn is used to make non-feed products ranging from ethanol to starch and sweeteners, which consume about one-third of China's corn output. This consumption diverts supply from animal feed millers in the world's most populous country, raising the prospect of corn shortages, as consumption is expected to grow much faster than output. The government will also limit corn starch projects with processing capacity of less than 300,000 metric tons a year, and eliminate those projects with annual capacity of less than 100,000 tons, the National Development & Reform Commission said in industrial guidelines published on its website.
Beijing has failed to halt an unprecedented expansion of corn processing industries, whose combined annual capacity has risen to almost 70 million tons in the marketing year ending Sept.30, Shang Qiangmin, director of the state-backed China National Grain & Oil Information Center, told an industry forum last week. These industries are expected to consume about 50 million tons of corn in the current marketing year, or about 29% of total corn output in the 2010 calendar year, the CNGOIC said. Beijing recently ordered banks to stop lending to corn purchasers, and it has cancelled tax breaks for corn processors to limit their expansion. The NDRC said China will also limit soybean-crushing projects outside of major producing areas, which include the northeastern provinces of Heilongjiang and Jilin and the Inner Mongolia Autonomous Region.
Soybean crushers' capacity utilization rates averaged about 50% last year, analysts said. Total soybean crushing capacity is expected to exceed 100 million tons this year, Luan Richeng, president of Chinatex Corp., the nation's third-largest soybean crusher in terms of capacity, said last week.
India 2010-11 Basmati Exports Rebound Despite First Half Fall (Source: CME)
India's basmati rice exports likely rose by up to 15% in the fiscal year which ended March 31 after recovering from a fall in the initial six months, the head of the state-run farm exports body said. "Basmati exports were in negative territory until October...[but] the basmati trade has been very active in the last three months," Asit Tripathy, chairman of the Agricultural and Processed Food Products Export Development Authority, said. India, the world's largest basmati supplier, exported 2 million metric tons in the 2009-10 fiscal year. "Considering that we had nearly 30% growth in [basmati] volume in the 2009-10 fiscal year, this time it was expected that the growth would plateau in the sense that it was a huge base," Tripathy said. "Even so, there seems to be growth." India is the world's top producer and exporter of aromatic, premium basmati rice, and neighboring Pakistan is its main rival.
Tripathy said that basmati exports were able to maintain their growth due to increased domestic production of a variety called Pusa 1121 and brisk demand from traditional buyers in the Middle East as well as new markets such as the U.S. and Europe. India allows basmati shipments with a floor price of $900 a ton, while the export of non-basmati rice is banned. The country produced 4.0 million to 4.5 million tons of basmati rice in 2009-10. The harvest is likely to be 4.5 million-5 million tons in the year through June. Tripathy added also that the state-run agency would intervene if there are prolonged payment problems with Iran, one of the key buyers of Indian basmati. "Up to now, we have not intervened. But if the exporters are facing a problem in getting payments from Iran, then that's a legitimate concern, and we will address that," Tripathy said, without elaborating.
Indian traders say they have been finding it difficult to receive payments for exports after India's central bank in December stopped Iran-related payments going through a regional clearing house that the U.S. says Tehran is using to evade international sanctions. Tripathy said that the export growth of all farm products, led by basmati rice, likely crossed INR400 billion in 2010-11, from INR360 billion in the previous year. Exports of groundnuts, beverages, buffalo meat and processed food items were all showing buoyant growth. He said that contract farming of everything from fruits to vegetables has picked up across several regions, improving the quality and supply chain for exports.
Russian wheat exports loom, may pressure prices
SINGAPORE, April 26 (Reuters) - Russia is likely to resume wheat exports later this year which will add to the global surplus of the grain, putting pressure on international prices, a U.S.-based agriculture consultant said on Tuesday.
Russia, typically the world's third largest wheat exporter, banned overseas grain sales last year after a devastating drought ravaged the Black Sea region, pushing wheat prices higher on the benchmark Chicago Board of Trade.
Although it is difficult to quantify the volumes that are expected to hit the market from Russia, the nation will take small steps in easing export curbs, said Emily French, managing director of ConsiliAgra, a U.S.-based consultancy and brokerage.
Poor Black Sea Wheat Exports To Keep Markets Tight In 2011-12-Rabobank (Source: CME)
World wheat markets are expected to stay tight this season as Russia and Ukraine are unlikely to fill a predicted shortfall in supplies in other key growers, Rabobank said. Exports from Black Sea producers, which also include Kazakhstan, are expected to total 22 million metric tons in 2011-12, said the bank, up 9 million tons on year but still down 15 million tons from the high of 2008-09. Yet this rise in exports is unlikely to make up for the impact of poor weather in the U.S. and Europe. Rabobank predicts wheat production in major exporting countries will rebound more than 30 million tons in 2011-12, hampering the rebuilding of world inventories and keeping the combined stock-to-use ratio in exporting countries around 16%. World markets soared to near-record highs this year after a ban on grain exports from Russia last summer sparked a price rally.
High prices look set to continue, "supported by ongoing weather concerns and only a muted recovery in exportable surpluses from the Black Sea region," said the bank. Russia, the Black Sea region's largest exporter, is forecast to produce its second-smallest crop since 2007-08 at 51.5 million tons due to poor plantings. That would be 10 million more than last year but down 20% on 2008-09. Fear of rising food prices and the need to rebuild inventories after drought slashed the harvest last year mean the Kremlin is likely to keep a ban on grain exports in place until the fourth quarter of the year, said Rabobank, limiting exports to 5 million tons in 2011-12--13.5 million tons lower than 2009-10. Ukraine, therefore is likely to be the region's largest exporter, with production expected to rise more than 25% on year to 21 million tons and pushing exports to their second-highest level in 25 years at 11 million tons.
Still, with "already tight world grain inventory levels," Rabobank said "this on-going production uncertainty will continue to support wheat prices until new crop supplies are assured."
China's Cheap Vegetables Problem (Source: CME)
When China suffers inflation, food prices are always a significant part of the problem. But the conundrum China's leaders face with this latest round of inflation is somewhat bizarre: While the country's consumer price index is running at a near three-year high, vegetables are so cheap that tons and tons of them are being left to rot away in the fields. Of course, vegetables are still expensive in the cities, and only in the cities, and that's exactly where the problem is. According to the official Xinhua News Agency (in Chinese), fat, juicy Chinese cabbages are selling at one yuan per 500 grams in city markets -- ten times the price the cabbage growers can fetch in the countryside. Why, with urbanites paying such princely sums, are farmers leaving their cabbages on the ground? Because middlemen, transportation companies and the government itself are pocketing the bulk of the price differential.
Logistics-induced costs accounts for two thirds of the total cost for vegetables nationwide, Zhou Wangjun, vice director of the National Development and Reform Commission's price section, is quoted by Xinhua saying. It turns out the problem isn't limited to produce. Referring to official statistics, Xinhua also said logistics-related costs constitute as much as 21.3% of China's gross domestic product, compared with just around 10% in developed countries. In a rather baffling example, Xinhua said it costs between 6 and 8 yuan to move one kilogram of goods via land transport from Shanghai to Guizhou, a province in the southwest, while it costs only 1.5 yuan to fly the same amount from Shanghai to New York. According to estimates by Wang Tongsan (in Chinese), a researcher at the Chinese Academy of Social Sciences, 82% of the world's toll-charging highways are in China, with road tolls accounting for as much as 50%-70% of logistics costs nationwide.
In the current climate, the logistics squeeze has had dire effects on more than just urban grocery budgets. Earlier this month, according to a report in the China Economic Times (in Chinese), the recent plunge in vegetable prices triggered the decision of a farmer in Shandong province to end his own life. Transport-related charges, some of which are a result of arbitrary decisions by local governments, also were at the heart of a trucker strike that gummed up Shanghai's large container handling ports last week. The strikes fizzled out yesterday as authorities pledged to cut some of the fees and offered new relief to the truckers. Economic officials and central bankers in Beijing have repeatedly stressed the importance of managing inflation expectations in the country's fight against rising consumer prices, but the vegetable price dilemma is a stark reminder that taming the China's inflation tiger won't be so easy.
Food Costs Seen Reaching a Record High This Year as Inflation Accelerates (Source: Bloomberg)
Global food prices may rise 4.4 percent to a record by the end of the year, driven by demand for meat, oilseeds and grains used to make ethanol, adding to costs that mean inflation is accelerating from the U.S. to China. The United Nations’ Food Price Index may climb to 240 points from 229.84 last month, said William Adams, a fund manager at Zurich-based Resilience AG, which has $22.2 million of assets. Global corn stockpiles are shrinking the most in seven years, inventories of nine edible oils will drop to the lowest since 1974 and U.S. beef stocks will be the smallest since 1999, the U.S. Department of Agriculture estimates.
Arabicas drift from near 34-year high, sugar dips
ICE arabica coffee futures eased in early trade, after touching a 34-year high on April 20, while sugar eased in a range, pressured by ample supplies from Brazil and Thailand. Arabica coffee futures on ICE eased, having touched a 34-year peak above the psychological $3 a lb level on April 20, with losses limited by tight supplies of mild washed arabicas.
India may consider more sugar exports-official
NEW DELHI, April 26 (Reuters) - India may consider additional unrestricted sugar exports after receiving final output figures for the current season from October, Food Secretary B.C. Gupta said on Tuesday.
"Let the final output come, we will review it," Gupta told reporters responding to a query on whether the government will allow more sugar exports.
China "imported enough sugar to ensure 2011 supply"
BEIJING, April 25 (Reuters) - China's 2010/2011 sugar output is expected to slip this year to 10.5 million tonnes, down from 10.74 million tonnes last year, but the government has already stocked enough imports to cover any deficit, an industry website quoted government officials as saying on Monday.
"We have already imported quite a volume to replenish reserves, far more than needed to cover the deficit in producing areas, and also enough to ensure the supply for the current year," said Liu Xiaonan from the National Development and Reform Commission, the government's top economic planning body.
Vietnam to cut coffee area but keep output stable by 2020
HANOI, April 24 (Reuters) - Vietnam, the world's second-largest coffee producer after Brazil, planned to cut its total coffee acreage by 13.5 percent to 480,000 hectares (1.19 million acres) while keeping output stable by the end of this decade, state-run media reported. The area would be trimmed from 555,000 hectares, while Vietnam will aim to produce about 1.1 million tonnes, or 18.33 million 60-kg bags, of coffee a year, similar to the output of the 2010/2011 crop, the official Vietnam News Agency said.
Japan rolled copper output logs biggest drop in 17 months
TOKYO, April 26 (Reuters) - Japan's output of rolled copper product slid 3.7 percent in March from the same month last year, its biggest fall in 17 months,
after the devastating March 11 earthquake and tsunami disrupted supply chains at automakers -- big consumers of copper parts.
Seasonally adjusted output totaled 68,620 tonnes in March, down 2 percent from February, preliminary data from the Japan Copper and Brass Association showed
on Tuesday.
US brass mill imports, exports fall in Feb yr/yr
NEW YORK, April 25 (Reuters) - U.S. imports of brass mill products declined by 2.2 percent in February compared with February 2010, and exports slid 13.3
percent from the year ago period, an industry group said on Monday.
Imports of all brass mill products into the United States in February fell to 33,583,095 lbs from 34,333,993 lbs in the year-ago period, the Copper and Brass
Fabricators Council said in its monthly report.
Zinc market has 52,000 T surplus Jan-Feb'11- ILZSG
LONDON, April 26 (Reuters) - The global zinc market was in surplus by 52,000 tonnes in the first two months of 2011, a monthly bulletin from Lisbon-based
International Lead and Zinc Study Group (ILZSG) showed.
Global refined zinc use was 2.037 million tonnes, compared with 1.880 million in January-February 2010.
Lead market has 17,000 T surplus Jan-Feb - ILZSG
LONDON, April 26 (Reuters) - The global lead market was in surplus by 17,000 tonnes in the first two months of the year, a monthly bulletin from the
Lisbon-based International Lead and Zinc Study Group (ILZSG) showed.
Global refined lead use was 1.591 million tonnes, up from 1.423 million in January to February 2010.
Indonesia's Timah says tin output may rise 5 pct this year
PANGKAL PINANG, Indonesia, April 26 (Reuters) - Production at Indonesia's state-owned Timah , the world's largest integrated tin miner, may rise 5 percent
this year as the firm prepares to use a new dredging boat, the CEO said on Tuesday.
Timah said its current production forecast was 40,000 to 50,000 tonnes, Chief Executive Wachid Usman said at a tin conference.
China raises 2011 minor metals output quotas
BEIJING, April 25 (Reuters) - China has set 2011 mining quotas for several minor metals, the Ministry of Industry and
Information Technology said on Monday, increasing the permitted output of tungsten, tin, antimony, molybdenum and rare earths.
The quotas limit output of tungsten ores to 87,000 tonnes, tin ores to 73,000 tonnes, antimony ores to 105,000 tonnes, molybdenum ores to 200,000 tonnes. The
limits refer to metal content of the ores for tin and antimony, or 65 percent tungsten trioxide and 45 percent molybdenum content.
METALS-Copper falls on China data, rising inventories
LONDON, April 26 (Reuters) - Copper fell on Tuesday as investors returned from the Easter long weekend digested data showing a plunge in China's imports of
refined copper and rising inventories of the metal used in construction and power.
Three-month copper on the London Metal Exchange was $9,491 a tonne in official rings from $9,700 when the market closed on Thursday before the long weekend
started on Friday. The metal has fallen around 7 percent from a record high $10,190 hit in February.
PRECIOUS-Gold, silver retreat from records, eyes on Fed
LONDON, April 26 (Reuters) - Silver and gold tumbled on Tuesday as investors sold on uncertainty about the direction of monetary policy in the United States,
but a softer dollar helped support prices and sentiment.
Spot silver ceded nearly 5 percent to $44.61 an ounce after touching $49.31 an ounce on Monday, within reach of $49.48 hit in January 1980
Oil Trades Near One-Week Low on Demand Concern as U.S. Home Prices Slide (Source: Bloomberg)
Oil traded near the lowest in almost a week on speculation fuel demand in the world’s biggest crude-consuming nation may falter after U.S. residential real- estate prices dropped the most in more than a year. Futures slipped today as the S&P/Case-Shiller index of property values in 20 cities fell 3.3 percent from February 2010, outweighing a gain in the Conference Board’s confidence index. An industry-funded report showed crude supplies increased the most in four weeks and U.S. Treasury Secretary Timothy Geithner said oil prices are an obstacle to economic growth.
Crude falls more than $1 on uncertainty ahead of Fed meet
SINGAPORE, April 26 (Reuters) - U.S. crude futures fell more than $1 as investors reduced risk ahead of a meeting of the U.S. Federal Reserve and after Saudi Aramco's chief executive said the kingdom was not comfortable with current oil prices. "We are not comfortable with oil prices where they are today...I am concerned about the impact it could have on the global economy," Khalid al-Falih, Aramco's chief executive, told an industry gathering in Seoul.
US corn futures finish mixed, with deferred contracts slipping on profit-taking after climbing recently on worries about planting delays. Weather conditions continue to look unfavorable for planting, as the Midwest is expected to remain cool and wet. The USDA on Monday confirmed planting was behind schedule. "Even though the news was kind of bullish overnight, you don't go up every day," says Jack Scoville of Price Futures Group. CBOT July corn rises 4 1/4c to $7.72 3/4 a bushel; December corn, which represents the crop that is being sown for harvest next fall, lost 5 3/4c to $6.75 3/4.
Wheat (Source: CME)
US wheat futures finish lower on profit-taking as markets pull back after climbing more than 3% yesterday. Prices retreated even though forecasts show dry weather will continue to stress winter wheat in southern US Plains and precipitation will delay planting of spring wheat in northern Plains. USDA yesterday lowered its crop rating for winter wheat and confirmed planting progress was lagging. CBOT July wheat falls 14 1/4c to $8.47 a bushel; KCBT July drops 10 1/4c to $9.60 3/4; MGE July loses 7 3/4c to $9.81 1/2.
Oats (Source: CME)
Oat futures ended lower, succumbing to profit taking pressure following recent advances. However, losses were limited by the ongoing threat of wet, cold weather in the northern plains and Canada causing planting delays. Oats for July delivery dropped 1.8% to $4.00 a bushel.
Rice (Source: CME)
US rice futures finish lower, giving back some recent gains. It seems as though worries about rains delaying planting in the US, which supported the market recently, have "run out steam," says Jack Scoville at Price Futures Group. Planting was 46% complete as of Sunday, below the average of 53% for that time of year, according to government data. CBOT July rice slides 14 1/2c to $14.66 1/2 per hundredweight.
U.S. corn planting seen 13 pct done, behind schedule
CHICAGO, April 25 (Reuters) - Damp soil and cold weather around the U.S. Midwest have likely put farmers well behind their ideal corn planting schedule and left them hoping for a quick warm-up as the deadline for optimal seeding approaches.
The U.S. Agriculture Department's weekly crop progress report on Monday afternoon is expected to show that farmers had planted 13 percent of their anticipated corn acreage as of April 24, based on an average of estimates given by nine analysts.
China To Limit Corn Use In Biofuel, Other Non-Feed Projects (Source: CME)
China will limit alcohol, biofuel and other non-animal-feed projects that use grain and edible oils as raw materials in an effort to secure grain supplies, China's top economic planner said. Corn is used to make non-feed products ranging from ethanol to starch and sweeteners, which consume about one-third of China's corn output. This consumption diverts supply from animal feed millers in the world's most populous country, raising the prospect of corn shortages, as consumption is expected to grow much faster than output. The government will also limit corn starch projects with processing capacity of less than 300,000 metric tons a year, and eliminate those projects with annual capacity of less than 100,000 tons, the National Development & Reform Commission said in industrial guidelines published on its website.
Beijing has failed to halt an unprecedented expansion of corn processing industries, whose combined annual capacity has risen to almost 70 million tons in the marketing year ending Sept.30, Shang Qiangmin, director of the state-backed China National Grain & Oil Information Center, told an industry forum last week. These industries are expected to consume about 50 million tons of corn in the current marketing year, or about 29% of total corn output in the 2010 calendar year, the CNGOIC said. Beijing recently ordered banks to stop lending to corn purchasers, and it has cancelled tax breaks for corn processors to limit their expansion. The NDRC said China will also limit soybean-crushing projects outside of major producing areas, which include the northeastern provinces of Heilongjiang and Jilin and the Inner Mongolia Autonomous Region.
Soybean crushers' capacity utilization rates averaged about 50% last year, analysts said. Total soybean crushing capacity is expected to exceed 100 million tons this year, Luan Richeng, president of Chinatex Corp., the nation's third-largest soybean crusher in terms of capacity, said last week.
India 2010-11 Basmati Exports Rebound Despite First Half Fall (Source: CME)
India's basmati rice exports likely rose by up to 15% in the fiscal year which ended March 31 after recovering from a fall in the initial six months, the head of the state-run farm exports body said. "Basmati exports were in negative territory until October...[but] the basmati trade has been very active in the last three months," Asit Tripathy, chairman of the Agricultural and Processed Food Products Export Development Authority, said. India, the world's largest basmati supplier, exported 2 million metric tons in the 2009-10 fiscal year. "Considering that we had nearly 30% growth in [basmati] volume in the 2009-10 fiscal year, this time it was expected that the growth would plateau in the sense that it was a huge base," Tripathy said. "Even so, there seems to be growth." India is the world's top producer and exporter of aromatic, premium basmati rice, and neighboring Pakistan is its main rival.
Tripathy said that basmati exports were able to maintain their growth due to increased domestic production of a variety called Pusa 1121 and brisk demand from traditional buyers in the Middle East as well as new markets such as the U.S. and Europe. India allows basmati shipments with a floor price of $900 a ton, while the export of non-basmati rice is banned. The country produced 4.0 million to 4.5 million tons of basmati rice in 2009-10. The harvest is likely to be 4.5 million-5 million tons in the year through June. Tripathy added also that the state-run agency would intervene if there are prolonged payment problems with Iran, one of the key buyers of Indian basmati. "Up to now, we have not intervened. But if the exporters are facing a problem in getting payments from Iran, then that's a legitimate concern, and we will address that," Tripathy said, without elaborating.
Indian traders say they have been finding it difficult to receive payments for exports after India's central bank in December stopped Iran-related payments going through a regional clearing house that the U.S. says Tehran is using to evade international sanctions. Tripathy said that the export growth of all farm products, led by basmati rice, likely crossed INR400 billion in 2010-11, from INR360 billion in the previous year. Exports of groundnuts, beverages, buffalo meat and processed food items were all showing buoyant growth. He said that contract farming of everything from fruits to vegetables has picked up across several regions, improving the quality and supply chain for exports.
Russian wheat exports loom, may pressure prices
SINGAPORE, April 26 (Reuters) - Russia is likely to resume wheat exports later this year which will add to the global surplus of the grain, putting pressure on international prices, a U.S.-based agriculture consultant said on Tuesday.
Russia, typically the world's third largest wheat exporter, banned overseas grain sales last year after a devastating drought ravaged the Black Sea region, pushing wheat prices higher on the benchmark Chicago Board of Trade.
Although it is difficult to quantify the volumes that are expected to hit the market from Russia, the nation will take small steps in easing export curbs, said Emily French, managing director of ConsiliAgra, a U.S.-based consultancy and brokerage.
Poor Black Sea Wheat Exports To Keep Markets Tight In 2011-12-Rabobank (Source: CME)
World wheat markets are expected to stay tight this season as Russia and Ukraine are unlikely to fill a predicted shortfall in supplies in other key growers, Rabobank said. Exports from Black Sea producers, which also include Kazakhstan, are expected to total 22 million metric tons in 2011-12, said the bank, up 9 million tons on year but still down 15 million tons from the high of 2008-09. Yet this rise in exports is unlikely to make up for the impact of poor weather in the U.S. and Europe. Rabobank predicts wheat production in major exporting countries will rebound more than 30 million tons in 2011-12, hampering the rebuilding of world inventories and keeping the combined stock-to-use ratio in exporting countries around 16%. World markets soared to near-record highs this year after a ban on grain exports from Russia last summer sparked a price rally.
High prices look set to continue, "supported by ongoing weather concerns and only a muted recovery in exportable surpluses from the Black Sea region," said the bank. Russia, the Black Sea region's largest exporter, is forecast to produce its second-smallest crop since 2007-08 at 51.5 million tons due to poor plantings. That would be 10 million more than last year but down 20% on 2008-09. Fear of rising food prices and the need to rebuild inventories after drought slashed the harvest last year mean the Kremlin is likely to keep a ban on grain exports in place until the fourth quarter of the year, said Rabobank, limiting exports to 5 million tons in 2011-12--13.5 million tons lower than 2009-10. Ukraine, therefore is likely to be the region's largest exporter, with production expected to rise more than 25% on year to 21 million tons and pushing exports to their second-highest level in 25 years at 11 million tons.
Still, with "already tight world grain inventory levels," Rabobank said "this on-going production uncertainty will continue to support wheat prices until new crop supplies are assured."
China's Cheap Vegetables Problem (Source: CME)
When China suffers inflation, food prices are always a significant part of the problem. But the conundrum China's leaders face with this latest round of inflation is somewhat bizarre: While the country's consumer price index is running at a near three-year high, vegetables are so cheap that tons and tons of them are being left to rot away in the fields. Of course, vegetables are still expensive in the cities, and only in the cities, and that's exactly where the problem is. According to the official Xinhua News Agency (in Chinese), fat, juicy Chinese cabbages are selling at one yuan per 500 grams in city markets -- ten times the price the cabbage growers can fetch in the countryside. Why, with urbanites paying such princely sums, are farmers leaving their cabbages on the ground? Because middlemen, transportation companies and the government itself are pocketing the bulk of the price differential.
Logistics-induced costs accounts for two thirds of the total cost for vegetables nationwide, Zhou Wangjun, vice director of the National Development and Reform Commission's price section, is quoted by Xinhua saying. It turns out the problem isn't limited to produce. Referring to official statistics, Xinhua also said logistics-related costs constitute as much as 21.3% of China's gross domestic product, compared with just around 10% in developed countries. In a rather baffling example, Xinhua said it costs between 6 and 8 yuan to move one kilogram of goods via land transport from Shanghai to Guizhou, a province in the southwest, while it costs only 1.5 yuan to fly the same amount from Shanghai to New York. According to estimates by Wang Tongsan (in Chinese), a researcher at the Chinese Academy of Social Sciences, 82% of the world's toll-charging highways are in China, with road tolls accounting for as much as 50%-70% of logistics costs nationwide.
In the current climate, the logistics squeeze has had dire effects on more than just urban grocery budgets. Earlier this month, according to a report in the China Economic Times (in Chinese), the recent plunge in vegetable prices triggered the decision of a farmer in Shandong province to end his own life. Transport-related charges, some of which are a result of arbitrary decisions by local governments, also were at the heart of a trucker strike that gummed up Shanghai's large container handling ports last week. The strikes fizzled out yesterday as authorities pledged to cut some of the fees and offered new relief to the truckers. Economic officials and central bankers in Beijing have repeatedly stressed the importance of managing inflation expectations in the country's fight against rising consumer prices, but the vegetable price dilemma is a stark reminder that taming the China's inflation tiger won't be so easy.
Food Costs Seen Reaching a Record High This Year as Inflation Accelerates (Source: Bloomberg)
Global food prices may rise 4.4 percent to a record by the end of the year, driven by demand for meat, oilseeds and grains used to make ethanol, adding to costs that mean inflation is accelerating from the U.S. to China. The United Nations’ Food Price Index may climb to 240 points from 229.84 last month, said William Adams, a fund manager at Zurich-based Resilience AG, which has $22.2 million of assets. Global corn stockpiles are shrinking the most in seven years, inventories of nine edible oils will drop to the lowest since 1974 and U.S. beef stocks will be the smallest since 1999, the U.S. Department of Agriculture estimates.
Arabicas drift from near 34-year high, sugar dips
ICE arabica coffee futures eased in early trade, after touching a 34-year high on April 20, while sugar eased in a range, pressured by ample supplies from Brazil and Thailand. Arabica coffee futures on ICE eased, having touched a 34-year peak above the psychological $3 a lb level on April 20, with losses limited by tight supplies of mild washed arabicas.
India may consider more sugar exports-official
NEW DELHI, April 26 (Reuters) - India may consider additional unrestricted sugar exports after receiving final output figures for the current season from October, Food Secretary B.C. Gupta said on Tuesday.
"Let the final output come, we will review it," Gupta told reporters responding to a query on whether the government will allow more sugar exports.
China "imported enough sugar to ensure 2011 supply"
BEIJING, April 25 (Reuters) - China's 2010/2011 sugar output is expected to slip this year to 10.5 million tonnes, down from 10.74 million tonnes last year, but the government has already stocked enough imports to cover any deficit, an industry website quoted government officials as saying on Monday.
"We have already imported quite a volume to replenish reserves, far more than needed to cover the deficit in producing areas, and also enough to ensure the supply for the current year," said Liu Xiaonan from the National Development and Reform Commission, the government's top economic planning body.
Vietnam to cut coffee area but keep output stable by 2020
HANOI, April 24 (Reuters) - Vietnam, the world's second-largest coffee producer after Brazil, planned to cut its total coffee acreage by 13.5 percent to 480,000 hectares (1.19 million acres) while keeping output stable by the end of this decade, state-run media reported. The area would be trimmed from 555,000 hectares, while Vietnam will aim to produce about 1.1 million tonnes, or 18.33 million 60-kg bags, of coffee a year, similar to the output of the 2010/2011 crop, the official Vietnam News Agency said.
Japan rolled copper output logs biggest drop in 17 months
TOKYO, April 26 (Reuters) - Japan's output of rolled copper product slid 3.7 percent in March from the same month last year, its biggest fall in 17 months,
after the devastating March 11 earthquake and tsunami disrupted supply chains at automakers -- big consumers of copper parts.
Seasonally adjusted output totaled 68,620 tonnes in March, down 2 percent from February, preliminary data from the Japan Copper and Brass Association showed
on Tuesday.
US brass mill imports, exports fall in Feb yr/yr
NEW YORK, April 25 (Reuters) - U.S. imports of brass mill products declined by 2.2 percent in February compared with February 2010, and exports slid 13.3
percent from the year ago period, an industry group said on Monday.
Imports of all brass mill products into the United States in February fell to 33,583,095 lbs from 34,333,993 lbs in the year-ago period, the Copper and Brass
Fabricators Council said in its monthly report.
Zinc market has 52,000 T surplus Jan-Feb'11- ILZSG
LONDON, April 26 (Reuters) - The global zinc market was in surplus by 52,000 tonnes in the first two months of 2011, a monthly bulletin from Lisbon-based
International Lead and Zinc Study Group (ILZSG) showed.
Global refined zinc use was 2.037 million tonnes, compared with 1.880 million in January-February 2010.
Lead market has 17,000 T surplus Jan-Feb - ILZSG
LONDON, April 26 (Reuters) - The global lead market was in surplus by 17,000 tonnes in the first two months of the year, a monthly bulletin from the
Lisbon-based International Lead and Zinc Study Group (ILZSG) showed.
Global refined lead use was 1.591 million tonnes, up from 1.423 million in January to February 2010.
Indonesia's Timah says tin output may rise 5 pct this year
PANGKAL PINANG, Indonesia, April 26 (Reuters) - Production at Indonesia's state-owned Timah , the world's largest integrated tin miner, may rise 5 percent
this year as the firm prepares to use a new dredging boat, the CEO said on Tuesday.
Timah said its current production forecast was 40,000 to 50,000 tonnes, Chief Executive Wachid Usman said at a tin conference.
China raises 2011 minor metals output quotas
BEIJING, April 25 (Reuters) - China has set 2011 mining quotas for several minor metals, the Ministry of Industry and
Information Technology said on Monday, increasing the permitted output of tungsten, tin, antimony, molybdenum and rare earths.
The quotas limit output of tungsten ores to 87,000 tonnes, tin ores to 73,000 tonnes, antimony ores to 105,000 tonnes, molybdenum ores to 200,000 tonnes. The
limits refer to metal content of the ores for tin and antimony, or 65 percent tungsten trioxide and 45 percent molybdenum content.
METALS-Copper falls on China data, rising inventories
LONDON, April 26 (Reuters) - Copper fell on Tuesday as investors returned from the Easter long weekend digested data showing a plunge in China's imports of
refined copper and rising inventories of the metal used in construction and power.
Three-month copper on the London Metal Exchange was $9,491 a tonne in official rings from $9,700 when the market closed on Thursday before the long weekend
started on Friday. The metal has fallen around 7 percent from a record high $10,190 hit in February.
PRECIOUS-Gold, silver retreat from records, eyes on Fed
LONDON, April 26 (Reuters) - Silver and gold tumbled on Tuesday as investors sold on uncertainty about the direction of monetary policy in the United States,
but a softer dollar helped support prices and sentiment.
Spot silver ceded nearly 5 percent to $44.61 an ounce after touching $49.31 an ounce on Monday, within reach of $49.48 hit in January 1980
Oil Trades Near One-Week Low on Demand Concern as U.S. Home Prices Slide (Source: Bloomberg)
Oil traded near the lowest in almost a week on speculation fuel demand in the world’s biggest crude-consuming nation may falter after U.S. residential real- estate prices dropped the most in more than a year. Futures slipped today as the S&P/Case-Shiller index of property values in 20 cities fell 3.3 percent from February 2010, outweighing a gain in the Conference Board’s confidence index. An industry-funded report showed crude supplies increased the most in four weeks and U.S. Treasury Secretary Timothy Geithner said oil prices are an obstacle to economic growth.
Crude falls more than $1 on uncertainty ahead of Fed meet
SINGAPORE, April 26 (Reuters) - U.S. crude futures fell more than $1 as investors reduced risk ahead of a meeting of the U.S. Federal Reserve and after Saudi Aramco's chief executive said the kingdom was not comfortable with current oil prices. "We are not comfortable with oil prices where they are today...I am concerned about the impact it could have on the global economy," Khalid al-Falih, Aramco's chief executive, told an industry gathering in Seoul.
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