Oil climbs on weather, gasoline demand, tighter crude stocks
SINGAPORE, Dec 21 (Reuters) - Oil prices rose for the third straight session on Tuesday, supported by cold weather in the United States and Europe, seasonal gasoline demand, and an expected drop in U.S. crude stocks.
"Oil prices are being driven by the oil product markets, which have risen on driving demand for the Christmas season and the cold in the north," Emori said.
Wheat dips from 19-wk top, corn firm on Argentine weather
SINGAPORE, Dec 21 (Reuters) - U.S. wheat futures ticked lower as investors moved in to book profit after the market's climb to a 19-week top in the last session on concerns over supplies next year.
"It is not surprising to see a little bit of profit taking. You will see people unwind as Christmas is right around the corner," said Brett Cooper, senior manager for markets at FCStone Australia. "We are going to see some slowdown and the volumes are not enormous."
La Nina may be at its peak, says Australia's weather bureau
SYDNEY, Dec 21 (Reuters) - The strongest La Nina weather event in nearly half a century, resulting in heavy rains and flooding which has damaged crops and flooded mines in Australia and Asia, may be at its peak, the Australian weather bureau said.
"Long-range models surveyed by the bureau suggest that this La Nina event may be at its peak and will persist through the southern hemisphere summer," the Bureau of Meteorology said in its weekly tropical climate note on Tuesday.
Gold gains on Europe debt fears, euro vulnerable
SINGAPORE, Dec 21 (Reuters) - Gold firmed as fears of further ratings downgrades in Europe spurred buying from speculators, but demand from jewelers slowed to a trickle in Asia, with most orders already filled before the year-end holidays.
"The volume is light, so a little of buying will push up gold. There's not too much sale of scrap at these levels. Next year will be a good year again for gold," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.
OIL: Oil steadies above $89, cold snap supports
SINGAPORE, Dec 21 (Reuters) - Oil was steady on Tuesday after rising for two consecutive sessions on seasonal demand and cold weather in the United States and Europe.
U.S. gasoline futures on Monday surged to an intra-day high of $2.3798 a gallon, the highest level since May. Prices, which were little changed on Tuesday, rallied on expectations for higher holiday driving demand and some supply tightness due to a refinery snag.
NATURAL GAS: Natural gas ends up 4 pct, cold outlook backs gains
NEW YORK, Dec 20 (Reuters) - U.S. natural gas futures ended sharply higher on Monday, backed by colder 10-day weather forecasts for the Northeast and Midwest despite concerns about ample supplies.
"There's a lot of gas around, and some people expect the market at some point to be drowning in gas, but the (cold) weather forecasts don't justify lower prices right now," a Houston-based trader said, adding sellers should take back control at the next sign of moderating weather.
COMMODITY MARKETS: Broadly up, defying dollar, cotton jumps 3 pct
NEW YORK, Dec 20 (Reuters) - Commodities bucked a stronger dollar on Monday to rise broadly on book-squaring before the year-end and possible buying by those fearing sharper rallies in coming months.
"People are inclined this time of the year to square off positions they feel they have risk in and want to move away from, and I think that's what we're seeing," Sterling Smith, analyst at Country Hedging Inc. in St. Paul, Minnesota.
GLOBAL MARETS: Euro tumbles but stocks rise in choppy day
NEW YORK, Dec 20 (Reuters) - The euro fell broadly on Monday on fears of fresh credit rating downgrades in Europe but global stocks edged higher and a bond rally fizzled as hopes of future rallies in risky assets sparked choppy trading.
"Credit ratings are eroding across much of the common currency zone as debt continues to increase and economic growth remains anemic," said Karl Schamotta, senior market strategist at Western Union Business Solutions in Victoria, British Columbia.
China money inflows slow but remain big-c.bank data
SHANGHAI, Dec 20 (Reuters) - Capital flows into China slowed in November from a near record high in October, central bank data showed, which is expected to reduce the need for the People's Bank of China to conduct another imminent tightening.
The "Position for Forex Purchases" showed November inflows remained at a historically high level. To cushion the prospect that higher returns for funds will invite more speculative "hot money" into China, the central bank may resort to quantitative tools instead of interest rate increases in the medium term.
China again taps brakes on soaring land prices
BEIJING, Dec 20 (Reuters) - Beijing has again told local authorities to step up efforts to curb excessive land price increases that have contributed to higher housing prices.
The Ministry of Land and Resource has told local governments to "pay a close attention to real estate market movements and to firmly implement regulatory and control measures" as a way to cool down heated bidding for land.
US growth prospects look firmer as year end nears
WASHINGTON, Dec 17 (Reuters) - The U.S. economy is gathering steam as the year draws to a close, boosting optimism about prospects in 2011, according to measures published by two separate economic research firms on Friday.
The Conference Board's measure of leading economic indicators jumped 1.1 percent in November, the biggest rise since March and the fifth straight monthly gain.
PRECIOUS-Gold draws in safe-haven flows, up for second day
LONDON, Dec 20 (Reuters) - Gold rose for a second day on Monday, overcoming the weakness in the euro after a warning from the European Central Bank on the region's finances encouraged light safe-haven flows into the metal.
Tensions on the Korean peninsula also fed the safe-haven bid for gold after an artillery firing drill by the South Korean military on a disputed island near the border with the North.
FOREX-Debt unease slams euro to all-time low vs CHF
LONDON, Dec 20 (Reuters) - The euro hit an all-time low against the Swiss franc and struggled versus the dollar on Monday as investors looked for more aggressive solutions from European leaders to the euro zone's debt problems.
The shared currency fell to 1.2701 Swiss francs according to electronic trading platform EBS, its weakest since the euro's launch in 1999 as investors sought a safe haven in the Swiss currency.
Wheat up 1 pct on supply concerns, corn firm
SINGAPORE, Dec 20 (Reuters) - Chicago wheat futures rose more than 1 percent on Monday, taking the monthly gains to around 18 percent as weather concerns in top exporters United States and Australia continued to underpin the market.
"There is some follow-through buying in the corn market after (analytical firm) Informa pulled their acres estimate...it is really setting the stage for what we are looking over the next 12 months and that is significant focus on fight for acres," said Luke Matthews, a commodity strategist at the Commonwealth Bank of Australia.
China plans $15 bln funding boost for grain output
BEIJING, Dec 18 (Reuters) - China plans to spend more than 100 billion yuan ($15 billion) over the next five years to upgrade farmland and add 50 million tonnes of annual grain production capacity, Xinhua news agency reported on Saturday.
"On one hand, we need to protect the arable land base for grain security; on the other hand, we need to satisfy land use for economic development," Xinhua quoted Minister of Land and Resources Xu Shaoshi as saying. "It is a dilemma."
Mexico sees 2011 corn output up 3.3 pct yr/yr
MEXICO CITY, Dec 17 (Reuters) - Mexico sees its corn output rising 3.3 percent in 2011 compared with the expected production for this year, Agriculture Minister Francisco Mayorga said on Friday.
Mexico is seen producing 25 million tonnes of corn next year, up from an estimated output of 24.2 million for 2010.
Informa cuts US 2011 corn acres f'cast; soy higher
CHICAGO, Dec 17 (Reuters) - Analytical firm Informa Economics lowered its forecast of U.S. corn plantings for 2011 and added acres to its soybean forecast, citing rising projected returns for new-crop soybeans, trade sources said on Friday.
The firm, based in Memphis, Tennessee, estimated that U.S. farmers would plant 90.755 million acres of corn in 2011, down from its November figure of 93.1 million.
World stocks steady; euro hits 2-week low
LONDON, Dec 20 (Reuters) - World stocks held steady below a recent two-year high on Monday while the euro hit a two-week low as concerns over the euro zone debt crisis persisted following last week's Irish rating downgrade. "The ratings change at the end of last week is still keeping the euro under selling pressure," said Carl Hammer, currency strategist at SEB in Stockholm.
