Europe Commodity Day Ahead: Coffee Supplies May Decline on India, Vietnam

The following are the top stories on metals, agriculture and shipping.

ECONOMIC EVENTS, AGRICULTURE EVENTS:

                                     Forecast  Prior     Time
                                                        (N.Y.)
GDP QoQ (Annualized) 3Q A               2.0%    1.7%      8:30
Personal Consumption 3Q A               2.5%    2.8%      8:30
GDP Price Index 3Q A                    1.8%    1.9%      8:30
Employment Cost Index 3Q                0.5%    0.5%      8:30
Chicago Purchasing Manager OCT          58.0    60.4      9:45
U of Michigan Confidence OCT F          68.0    67.9      9:55
NAPM-Milwaukee OCT                              50.0     10:00
Bloomberg FCI Monthly OCT                                16:15
Agriculture Prices Received OCT                19.0%     15:00

Metal Prices: ($/ton)

Last % Chg Aluminum 2,22 -1.1 Copper 8,243 -1.2 Lead 2,455 -2.0 Zinc 2,442 -2.1 Nickel 22,833 -1.2 Tin 26,100 -0.6

Other Markets:

Last %Chg %YTD U.S. Dollar Index 77.412 +0.1 -0.6 Crude Oil $81.70 -0.6 +3.0 Gold

$1,340.50 -0.3 +22 MSCI World Index 1,220.55 - 0.1 +4.5 *T

EXCLUSIVE:

Coffee Supply May Tighten on Indian Delay, Lower Vietnam Output

Global coffee supplies may tighten after an Indian exporters’ group forecast a delay in harvesting because of extended rains and an industry association in Vietnam said that production may decline, potentially boosting prices.

INDUSTRIAL METALS:

Copper Drops From London to Shanghai, Paring Fourth Monthly Gain

Copper declined from London to Shanghai, paring a fourth monthly gain, on concern that the recent rally in prices slowed purchases in China, the world’s largest consumer.

MINING:

Potash Corp.’s Doyle Urges Patience on Alternatives to BHP’s Bid

Potash Corp. of Saskatchewan Inc. Chief Executive Officer Bill Doyle said anyone who thinks BHP Billiton Ltd. will be the only qualified bidder for the Canadian fertilizer maker should “be patient.”

China May Identify Molybdenum as National Resource, Journal Says

China is preparing to classify molybdenum as a so called national mining resource to limit the mining of the minor metal starting next year, the China Securities Journal reported today, citing an unidentified person.

China’s Major Steelmakers Nine-Month Profit Gains 98%, Cisa Says

China’s 77 large-and-medium-sized steel makers recorded a combined profit of 64 billion yuan in the first nine months, an increase of 98 percent over the previous year, the China Iron & Steel Association said on its website today. Sales revenues gained 39.5 percent to 2.25 trillion yuan, the association said.

China’s Steel Exports to Decline, Association Says

China’s steel exports will drop “significantly” in the fourth quarter from the first half because of the removal of a tax rebate, yuan appreciation and lower demand, the China Iron and Steel Association said.

China Says Iron Ore Price Talks for Next Year Have Started

Iron ore price talks for 2011 have started, Luo Bingsheng, the vice president of the China Iron and Steel Association, told reporters in Beijing today. He declined to comment further on price negotiations or iron ore pricing.

Rio Tinto Sells $2 Billion of Debt to Fund 2013 Notes Buyback

Rio Tinto Group, the world’s third-largest mining company, sold $2 billion of bonds in a three-part offering to fund a buyback of existing notes.

Southern Copper Hedged 11% of 2011 Copper Output at $3.73/LB

Southern Copper Corp., the largest metal producer in Peru and Mexico, hedged 11 percent of its 2011 copper output at $3.73 per pound, according to a filing with Mexico’s stock exchange by its parent company, Grupo Mexico SAB.

CSN Says Third-Quarter Profit Falls 37% on Price Cuts

Cia. Siderurgica Nacional SA, Brazil’s third-largest steelmaker, said third-quarter profit fell 37 percent as increasing steel imports prompted the company to reduce prices.

BHP Wins Order Sealing Part of Revamped Potash Suit

BHP Billiton Ltd. won an interim court order sealing parts of a revised complaint Potash Corp. of Saskatchewan Inc. filed in an effort to block a $40 billion hostile takeover.

PRECIOUS METALS:

Gold Drops as Biggest Rally in Two Weeks Prompts Investor Sales

Gold declined as the biggest rally in more than two weeks prompted some investors to sell the precious metal to lock in gains.

Silver, Palladium Flows Show Swing to Recovery: Chart of Day

Accelerating purchases of palladium, platinum and silver at the expense of gold signals investors may be increasing bets on an economic recovery.

Gold May Decline on Concern Prices Rose Too High, Survey Shows

Gold may decline on concern that prices rose too high amid speculation about Federal Reserve asset purchases, a survey found.

Gold Will Outlive Dollar Once Slaughter Comes: John Hathaway

The world’s monetary system is in the process of melting down. We have entered the endgame for the dollar as the dominant reserve currency, but most investors and policy makers are unaware of the implications.

AGRICULTURE:

Corn, Rice Head for Biggest Monthly Gains in More Than Two Years

Corn headed for its biggest monthly advance since June 2008 on concern that global demand will outpace falling U.S. output. Rice was set for its best monthly gain in more than two years as floods damaged Asian crops.

Palm Oil Drops as Discount to Soybean Oil Narrows to 3-Week Low

Palm oil declined from a 27-month high after the discount at which it trades to rival soybean oil narrowed to a three-week low.

Corn’s 2-Year High Fails to Curb Ethanol Profit: Energy Markets

The highest corn costs in two years are failing to dent profits for U.S. ethanol producers as demand grows and prices for the biofuel and a byproduct used for animal feed increase.

China Agricultural Price Gains ‘Are Expected,’ New Hope Says

Most of China’s agricultural product prices are still lower than global levels, so gains are expected, Liu Yonghao, chairman of New Hope Group Co., said in Beijing today. New Hope is the biggest maker of livestock feed in China.

Vietnam’s Rice Shipments May Decline Next Year, Thoi Bao Says

Vietnam’s rice exports may decline to 6 million metric tons in 2011, the Thoi Bao Kinh Te Vietnam newspaper reported, citing a forecast from the Ministry of Trade and Industry.

SOFT COMMODITIES:

Rubber Drops, Paring Monthly Gain as China May Curb Prices

Rubber declined, paring a monthly gain, as futures in Shanghai slumped amid concern that China may tighten trading rules to curb excessive speculation and data showed Japan’s industrial production dropped at a faster pace.

Sugar Rises to Eight-Month High on Thailand Flood; Cotton Falls

Sugar prices rose to an eight-month high after floods hurt crops in Thailand, the world’s second-biggest exporter. Cotton fell for the second straight day.

DAIRY

Global Dairy IPO Soured by Melamine Scandal Memories

Global Dairy Holdings Ltd. fell for a second day in Hong Kong after yesterday enduring the city’s fifth-worst trading debut of 2010 as skepticism about China’s dairy industry lingers two years after about 300,000 children were sickened by tainted milk.

ECONOMIES:

Australia Wealth Fund to Swell Property, Infrastructure Assets

Australia’s sovereign wealth fund plans to increase property and infrastructure investments and cut debt holdings this fiscal year to diversify A$69.3 billion ($68 billion) of assets.

Japan ‘Behind’ in Fighting Deflation as Fed Gears Up

The Bank of Japan’s inflation forecast shows it won’t meet its own guidelines for price stability, a prediction that signals policy makers haven’t pumped enough cash into the economy.

China May Clamp Down on Yuan as Exports Tumble: Chart of Day

China’s exports may slide from year-earlier levels in coming months, providing justification for the government to rein in gains by the yuan against the dollar, according to Royal Bank of Scotland Plc.

Singapore Employers Boost Payrolls, Jobless Rate Drops to 2.1%

Singapore employers expanded payrolls for a fifth consecutive quarter, pushing the jobless rate to the lowest in 2 1/2 years.

OTHER MARKETS:

Crude Oil Drops Below $82 a Barrel After U.S. Equities Decline

Oil declined in New York after most U.S. equities fell, signaling a recovery in fuel demand in the world’s biggest crude consuming nation may falter.

Junk Sets October Record, Mortgage Bonds Rally: Credit Markets

Sales of junk bonds in the U.S. set a record for October as returns topped investment-grade debt and more borrowers were raised than cut. Government-backed mortgage bonds may beat Treasuries by the most in at least 10 years.

Dollar May Be Nearing Bottom, Rise to 82 Yen: Technical Analysis

The dollar may rebound toward 82 yen as technical charts indicate the currency is nearing a bottom, according to Bank of Tokyo-Mitsubishi UFJ Ltd.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.