U.S. Commodities Day Ahead: Corn Extends Losses on Acreage Rise
The following are the top stories on metals, agriculture and shipping.
ECONOMIC EVENTS, AGRICULTURE REPORTS:
Forecast Prior Time
(N.Y.)
U. of Michigan Confidence JUN F 72.0 71.8 9:55
Construction Spending MoM MAY 0.1% 0.4% 10:00
ISM Manufacturing JUN 52.0 53.5 10:00
ISM Prices Paid JUN 70.9 76.5 10:00
Total Vehicle Sales JUN 12.08M 11.76M 17:00
Domestic Vehicle Sales JUN 9.40M 9.22M 17:00
USDA Cattle Slaughter JUL 1 129000 14:00
USDA Hog Slaughter JUL 1 401000 14:00
METAL PRICES: ($/ton)
Last % Chg RSI
Copper 9,441 +0.1 63
Aluminum 2,527 -0.2 43
Zinc 2,370 +0.2 66
Lead 2,657 -1.0 62
Nickel 23,355 -0.3 57
Tin 26,000 -0.2 48
OTHER MARKETS:
Last % Chg % YTD
U.S. Dollar Index 74.470 +0.1 -5.8
Crude Oil $94.59 -0.9 +3.5
Gold $1,488.9 -0.8 +4.8
MSCI World Index 1,332.28 +0.1 +4.1
TOP STORY:
Corn Extends Worst Monthly Loss Since 2008 on Acreage Increase
Corn fell for a third day in Chicago, extending the biggest monthly drop since October 2008, after the U.S. reported acreage and inventories that topped analyst’s estimates. Wheat reached an 11-month low.
COMMODITY EXCLUSIVES:
Bright Food Said to Consider Bid for Treasury Wine Estates (1)
Bright Food Group Co., Shanghai’s biggest food and dairy producer, is considering making an offer for Australia’s Treasury Wine Estates Ltd., according to two people familiar with the matter.
China May Purchase U.S. Corn as Price Slumps: Chart of the Day
China may buy more U.S. corn to replenish its stockpiles as the commodity plunged as much as 11 percent in two days in Chicago after the U.S. government reported acreage and inventories that topped analyst estimates.
BHP May Add to $23 Billion in Share Buybacks as Profit Surges
BHP Billiton Ltd. may add to almost $23 billion spent since 2004 buying back stock as the world’s largest mining company seeks to deploy cash generated by record profit, analysts and investors said.
Japan Spot LNG Purchases Rise to 32-Month High After Earthquake
Japan, which suffered damage to its nuclear and coal-fired power plants in the March 11 earthquake and tsunami, boosted Atlantic spot purchases of liquefied natural gas to a 32-month high in May to replace lost electricity generation.
Brent to Recover as Supply Boost Seen Failing: Energy Markets
Oil is poised to recover from its first quarterly decline in a year as speculation grows that the use of emergency reserves by consuming nations will fail to make up for supplies lost amid the conflict in Libya.
California Carbon Cuts Seen Separate From Cap-and-Trade Plan
California requirements for cleaner-burning transportation fuel and mandates for the use of renewable energy will do more than a cap-and-trade program to help the state reach greenhouse- gas pollution targets in 2020.
Emirates Meets Oil Squeeze With Fare Cuts, Turning Screw on BA
Emirates, the biggest international airline, said it will combat a profit squeeze from higher fuel costs by slashing fares to fill its 500-seat Airbus A380s, heightening competition for Air France-KLM and British Airways.
INDUSTRIAL METALS:
Copper May Rise on Reduced Concern About Chinese Rate Increases
Copper may rise for a fourth day in London after manufacturing growth slowed in China, easing concern the world’s biggest consumer of the metal might increase interest rates again.
MINING:
South African Quarterly Gold Production Falls 9.3%, Chamber Says
South African gold production fell 9.3 percent in the first quarter compared with the previous three months, the Chamber of Mines of South Africa said in an e-mailed statement today.
Lynas Drops After New Conditions Imposed on Rare Earth Plant (2)
Lynas Corp., an Australian rare earth developer, dropped the most in 21 months in Sydney trading after Malaysia imposed extra safety conditions that have delayed work on the refinery it’s building there.
PRECIOUS METALS:
Gold Declines to a Six-Week Low as Greek Default Concerns Ease
Gold declined to a six-week low in London as Greece progressed in staving off a default, curbing demand for the metal as a protection of wealth.
U.S. Mint American Eagle Gold Coin Sales Lowest Since December
The U.S. Mint sold 61,500 ounces of American Eagle gold coins last month, the least since December. Silver coin sales declined 6.9 percent.
Gold-Vending Machine Opens in London, Ex Oriente Lux AG Says (1)
Ex Oriente Lux AG, the maker of “Gold to Go” bullion vending machines, opened its first U.K. dispenser at the Westfield shopping center in London.
Gold Buying in India Continues to Grow Driven by Jewelry Sales
Gold demand in India, at a record last year, is growing as high prices fail to deter jewelry sales in the world’s biggest consumer, the World Gold Council said.
Gold May Gain on Concern About Slowing Economy, Survey Shows
Gold may gain as concern about a slowing economy spurs demand for the metal as an alternative investment, a survey found.
AGRICULTURE:
Palm Oil Drops to Eight-Month Low as U.S. Soybean Supplies Grow
Palm oil slumped to the lowest level in more than eight months after a U.S. report showed larger- than-expected soybean inventories, and as a decline in crude oil prices cut the appeal of vegetable oils as biofuels.
Vietnam Coffee Premium Rose 25% in Week on Demand, Volcafe Says
Premiums for coffee beans from Vietnam, the world’s largest producer of the robusta variety, climbed 25 percent this week on increased demand, according to trader Volcafe.
U.K. Crop Losses Narrow as Rain Follows Driest-Ever Spring (1)
The U.K., the European Union’s third- biggest wheat producer, will lose fewer crops than previously expected this year as rain followed the driest spring on record.
Coffee Falls as Brazil Frost Damage Is Limited; Cocoa Retreats
Coffee fell in London and New York on signs that frosts in some growing areas in top producer Brazil didn’t damage the crop severely. Sugar and cocoa also slid.
Rice Output in Indonesia May Rise 2.4% on Increased Planting (1)
Unhusked rice production in Indonesia, the world’s third- largest grower, may rise 2.4 percent this year after farmers expanded planting amid favorable weather, potentially reducing the nation’s reliance on imports.
SHIPPING:
Spanish Tax Benefit for Ship Purchases Faces EU State-Aid Probe
Spanish tax benefits for ship purchases through a financing structure involving leasing companies may distort competition and constitute illegal state aid, the European Commission said.
ECONOMIES:
Asia Manufacturing Slows, Posing Rates Dilemma as Prices Rise
Manufacturing growth is slowing in Asian economies from China to South Korea, creating a dilemma for central bankers considering higher interest rates to combat inflation.
Flattest Bond Curve Since ‘08 Shows Hawkish PBOC: China Credit
China’s worst credit crunch on record will last long enough to slow the world’s fastest-growing economy judging by government bond prices.
China’s June Home Prices Slow in Biggest Cities, SouFun Says
China’s June home prices eased in eight of the country’s 10 biggest cities as the government expanded efforts to curb the risk of asset bubbles in its housing market, according to SouFun Holdings Ltd.
China’s Manufacturing Growth Cools on Monetary Tightening (3)
A Chinese manufacturing index fell to the lowest level since February 2009, signaling that the world’s second-biggest economy is cooling as export demand weakens and the government reins in credit to control inflation.
Global Manufacturing Slows, Posing Rates Dilemma as Prices Rise
Manufacturing growth is slowing in from China to Europe, creating a dilemma for central bankers considering higher interest rates to combat inflation.
Japan Tankan Survey Shows Economic Rebound Gathering Steam (1)
Japanese companies forecast increased hiring and investment as demand picks up this year after the March earthquake that triggered the biggest plunge in the Tankan survey of sentiment since 2009.
OTHER MARKETS:
Stocks Little Changed Before U.S. Data; Oil Declines on China
European stocks and U.S. index futures were little changed before a report that will provide evidence about the pace of America’s recovery. Commodities fell after manufacturing growth slowed in China, while the Swiss franc weakened and Greek two- year bonds advanced.
Franc Depreciates as Haven Bets Unwind; Euro Set for Weekly Gain
The Swiss franc weakened against 16 of its major peers as investors sought higher-yielding currencies amid confidence policy makers and bankers have staved off a Greek default.
Dollar’s Share of Global Currency Reserves Declines, IMF Says
The dollar’s share of global currency reserves dropped in the first quarter to the lowest level in at least a dozen years as the greenback weakened against currencies of its major trading partners, International Monetary Fund data showed.
European Stocks Little Changed; Stoxx 600 Heads for Weekly Rally
European stocks were little changed as the benchmark Stoxx Europe 600 Index headed for the biggest weekly rally in 10 months. Asian shares advanced and U.S. index futures fluctuated.
Nothing Works in June as Greece Sends Stocks, Bonds Lower (1)
Stocks, bonds and commodities posted monthly declines for the first time since the end of the financial crisis in February 2009, dragged down by concern Greece will default and signs economies are slowing.
Crude Oil Declines on China, U.S. Slowdown as IEA Sales Begin
Oil declined, trimming the biggest weekly gain in almost three months, as signs of slowing manufacturing growth in China and the U.S., the world’s biggest energy users, stoked speculation fuel demand may falter.
Geithner’s Possible Departure Would Make Obama Rebuild Team (1)
Treasury Secretary Timothy F. Geithner’s potential departure from the administration would force President Barack Obama to assemble a new economic team as he enters a re-election campaign that’s likely to be dominated by voter concern over jobs.
Ex-IMF Chief Strauss-Kahn’s Accuser Said to Lack Credibility
Questions about the credibility of the woman who accused former International Monetary Fund chief Dominique Strauss-Kahn of a sexual attack have placed the case in jeopardy, a person familiar with the matter said.
SPORTS:
Arsenal Gets Striker Gervinho for $17.6 Million: Soccer Roundup
The following is a roundup of soccer stories from U.K. newspapers, with clickable links to the Web.
India Builds 34-Run Lead in Test as Sharma Gets to 100 Wickets
India ended day three of the second cricket Test 34 runs ahead of the West Indies after Ishant Sharma became the fifth- youngest bowler to take 100 wickets.
Germany, France Reach Quarterfinals at Women’s World Cup Soccer
Germany, the two-time defending champion and host nation, beat Nigeria 1-0 to join France in the quarterfinals of soccer’s Women’s World Cup.
To contact the editor responsible for this story: Stuart Wallace in London at swallace6@bloomberg.net
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