Asia Commodity Day Ahead: Gold Prices Climb to Record Settlement

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

ECONOMIC EVENTS, AGRICULTURE REPORTS:
                                     Forecast   Prior       Time
                                                          (N.Y.)
MBA Mortgage Applications     JUL       8         -5.2%     7:00
Import Price Index (MoM)      JUN       -0.6%     0.2%      8:30
Import Price Index (YoY)      JUN       13.2%     12.5%     8:30
Monthly Budget Statement      JUN       -$45.4B   -$57.6B  14:00
USDA Cattle Slaughter         JUL 13              129000
USDA Hog Slaughter            JUL 13              412000
USDA Broiler Eggs Set         JUL 8               198530


Metal Prices: ($/ton)
                 Last  % Chg RSI
Copper          9,650   +0.8  64
Aluminum        2,492   +0.6  42
Zinc            2,349   +1.6  56
Lead            2,733   +2.1  66
Nickel         23,645   +1.8  57
Tin            27,150   +2.1  57

Other Markets:
                       Last  % Chg % YTD
U.S. Dollar Index    75.938   -0.1  -3.9
Crude Oil            $97.43   +2.4  +6.6
Gold               $1,562.30  +0.9  +9.9
MSCI World Index   1,307.28   -0.6  +2.1

TOP STORY:

Gold Futures Rise to Record Settlement on European Debt Crisis

Gold futures rose to a record settlement as Europe’s escalating debt crisis boosted demand for the metal as a haven investment.

COMMODITY EXCLUSIVES:

Sri Lanka Seeking to Catch Singapore With China: Freight Markets

Sri Lanka aims to create an Asian shipping hub capable of competing against Singapore and Dubai by pouring $3.4 billion into expanding ports with Chinese help, after the island’s container volumes surged to a record.

INDUSTRIAL METALS:

Copper Futures Advance in New York as Chinese Imports Rebound

Copper rose for the first time in three sessions on signs that demand is rebounding in China, the world’s biggest consumer.

MINING:

Fresnillo Silver Mine to Produce 10 Million Ounces in 2015 (1)

Fresnillo Plc, the world’s largest primary silver miner, will produce 10 million ounces of silver and 50,000 ounces of gold in 2015 at its Saucito mine in north-central Mexico, said Alberto Bailleres, the company’s chairman.

PRECIOUS METALS:

Buy Gold ETF Options Amid Distrust of Currencies, Jefferies Says

Investors should trade options on a fund tracking gold because distrust of currencies will drive up the metal’s price, Jefferies Group Inc. said.

Economist Gartman Cutting Gold Held in Euros at Record Price (1)

Dennis Gartman, the economist and editor of the Gartman Letter who correctly forecast 2008’s commodities slump, said he’s cutting his euro-denominated gold holdings as “too many people have joined the trade.”

AGRICULTURE:

Corn Futures Rally as USDA Reports Inventory Drop; Soybeans Gain

Corn rose to the highest price this month after the government said U.S. stockpiles will be smaller than expected, heightening concern that costs for food and fuel will climb. Soybean prices also gained.

Cotton Tumbles as USDA Cuts Demand Outlook; Orange Juice Gains

Cotton dropped to a nine-month low on signs of slowing demand for supplies from the U.S., the world’s biggest exporter. Orange juice advanced.

Wheat Rises on Signs U.S. Exports Will Erode Domestic Supplies

Wheat futures surged the most in almost eight weeks after a government report showed demand for U.S. exports will outpace gains in production.

Sugar Jumps to Highest Since March as Brazil Output May Tumble

Sugar prices rose to a four-month high on speculation that supplies will be lower than forecast in Brazil, the world’s biggest grower and exporter.

Hog Futures Decline on Signs of Slowing Demand; Cattle Drop

Hog futures fell the most this month on signs of slowing U.S. demand. Cattle also declined.

Argentina Frost Damages Sugar-Cane Crop, Forecaster Markert Says

The sugar-cane crop in Argentina, the second-largest producer in South America, was damaged by frost last week, according to Paul Markert, a meteorologist at MDA Information Systems Inc.

SHIPPING:

Panamax Ship Rents Will Drop Through 2012, DVB Bank Forecasts

Rents for panamax commodity-hauling ships will fall through the end of next year because too many of the vessels are being built, according to German transportation lender DVB Bank SE.

ECONOMIES:

U.S. Trade Deficit Unexpectedly Surges as Oil Prices Climb (2)

The trade deficit in the U.S. widened in May to the highest level in almost three years, reflecting a surge in the cost of imported crude oil.

Ivory Coast Unable to Pay Debt, Seeks Complete Reassessment (3)

Ivory Coast, the world’s biggest cocoa producer, said it’s seeking “a complete reassessment” of $2.3 billion of Eurobonds after ruling out payments this year because of damage to the economy from post-election fighting.

OTHER MARKETS:

Stocks, Euro Retreat, Treasuries Gain as Europe Concern Grows

Global stocks extended the biggest three-day slump since March and the euro weakened as Ireland’s debt rating was cut to junk, adding to signs Europe’s crisis is spreading. Treasury 10- year yields touched a 2011 low.

Euro Drops on Ireland Cut, Concern Debt Crisis Will Reach Italy

The euro weakened against the dollar after Moody’s Investors Service reduced Ireland’s sovereign debt rating, adding to concern the European debt crisis is deepening.

Crude Oil Rises Most in Two Weeks as Europe Tackles Debt Crisis

Oil climbed the most in two weeks in New York as European governments worked to halt the region’s credit crisis.

SPORTS:

Mickelson Making Fresh Start in Quest for British Open Title

Four-time major winner Phil Mickelson said he’s taking a new approach into this year’s British Open after just one top-10 finish in 17 appearances.

Watson Concerned for Tiger Woods’s Future After Knee Injuries

Eight-time major champion Tom Watson said he’s concerned about Tiger Woods’s playing future because of the former top- ranked golfer’s long-running knee problems.

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.