Europe Commodity Day Ahead: Aluminum Wait Triggers LME Review

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

ECONOMIC EVENTS, AGRICULTURE REPORTS:
                                      Forecast  Prior       Time
                                                         (N.Y.)


Euro zone industrial output   MAY       4.8%      5.3%      5:00
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

Metal Prices: ($/ton)
                 Last     %Chg   RSI
Copper         $9,736.25  +0.9   66
Aluminum       $2,506     +0.6   44
Zinc           $2,390     +1.8   59
Lead           $2,770     +1.4   68
Nickel        $23,752     +0.5   58
Tin           $27,300     +0.6   58

Other Markets:
                       Last     %Chg    %YTD
U.S. Dollar Index      75.914   +0.1    -3.9
Crude Oil             $97.39    -0.04   +6.6
Gold                $1,568.05   +0.02  +10.4
MSCI World Index    $1,309.40   +0.2    +2.3

TOP STORY:

Seven-Month Wait for Aluminum Drives LME to Review Rules (1)

When the London Metal Exchange was founded in the days of steamships, contracts were priced three months out to reflect the time it took to get tin from Southeast Asia or copper from Chile. These days, it can take twice as long to get aluminum out of an LME-approved warehouse in Detroit.

COMMODITY EXCLUSIVES:

Gecamines Sale of Congo Copper Assets May Undermine Share Offer

The undisclosed sale of assets by Gecamines, the Democratic Republic of Congo’s state-owned copper and cobalt miner, may undermine its plans to offer shares to investors, analysts and lawmakers said.

Heatstroke Deaths Quadruple as Japan Shuns Air Conditioners (1)

Deaths from heatstroke in Japan quadrupled in the early part of summer as temperatures rose and air conditioners were switched off in line with government appeals to curb electricity usage to avoid power blackouts.

Orange-Juice Breakfast Heads for Record Cost: Chart of the Day

U.S. consumers are poised to pay the most ever for their breakfast orange juice as inventories dwindle.

Aluminum 2-Year Rally ‘Intact’ Above $2,300: Technical Analysis

Aluminum’s almost 2-1/2 year rally is “intact” as long as the metal stays above $2,300 a metric ton, according to technical analysis by Barclays Capital.

INDUSTRIAL METALS:

China’s Copper, Aluminum Production Gain to Records in June (1)

Copper and aluminum production in China climbed to records in June as high prices, ample raw materials and power supplies prompted smelters to raise output.

Copper Gains for Second Day as China Growth Data Beat Estimates

Copper advanced in London for a second day as stronger- than-expected economic data from China, the world’s largest consumer, boosted the demand outlook. Aluminum and zinc also advanced.

MINING:

EPA Funds Cut as House Panel Approves Bill Delaying Carbon Rules

Legislation that would slash funding for the Environmental Protection Agency, delay greenhouse-gas regulations and repeal a ban on uranium mining near the Grand Canyon was approved by a U.S. House panel.

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, company chairman.

PRECIOUS METALS:

Indian Gold Investment Seen Extending to Record on Incomes (1)

Record investment demand for gold in India will keep climbing as higher incomes spur buying even with the metal trading near an all-time high, according to Reliance Capital Asset Management Ltd.

Gold May Extend Rally, Near Record, as Debt Crisis Escalates

Gold, trading within 1 percent of an all-time high, may advance for an eighth day on concern that the escalating debt crisis in Europe may trigger a global slowdown, boosting investment demand. Bullion in Shanghai reached a record.

AGRICULTURE:

Indonesia to Import Rice to Maintain Stocks, Pangestu Says

Indonesia will import rice to maintain stocks, Trade Minister Mari Pangestu told reporters in Jakarta today. The necessary volume and the timing of the imports are being calculated, she said.

Palm Oil Gains as Lower U.S. Soybean Inventory May Boost Demand

Palm oil advanced for the first time in three days on speculation that a decline in U.S. soybean stockpiles may boost demand for the tropical cooking oil.

Corn Trades at Two-Week High; Rice Jumps to Highest Since 2008

Corn traded at a two-week high after the U.S. government said stockpiles will be smaller than expected, stoking concern about higher food and fuel costs. Rice climbed to the highest since 2008.

India’s Monsoon Deficit Widens to 4% Since June 1, Agency Says

India’s monsoon, the main source of water for the nation’s 235 million farmers, was 4 percent below a 50-year average, the weather office said.

Rubber Rebounds From Two-Week Low as Yen’s Retreat Spurs Buying

Rubber increased, snapping a four- day losing streak, as investors bought back yen-based contracts after the Japanese currency retreated from a four-month high against the dollar amid speculation over intervention.

Rice Climbs to Highest Level Since November 2008 in Chicago

Rice for September delivery advanced as much as 2.2 percent to $16.54 per 100 pounds on the Chicago Board of Trade, the most expensive level for the most active contract since November 2008, and traded at $16.42 at 8:25 a.m. in Singapore.

SHIPPING:

International Container Says It’s ‘Studying’ Options for Portek

International Container Terminal Services Inc. is studying its options over its bid for Singapore’s Portek International Ltd. following a plan by Mitsui & Co. to make a higher offer.

Russia Recovers 100th Body After Sinking of Tour Boat Bulgaria

Russian rescue workers recovered the 100th body from the July 10 sinking of an unlicensed tourist boat in the Volga River, the Emergency Ministry said.

ECONOMIES:

China Economy Grows 9.5%, Exceeding Economists’ Estimates (1)

China’s economy and industrial output expanded more than analysts predicted, driving up stocks across Asia as the nation maintains momentum after monetary tightening to cool inflation.

Ireland’s Rating Cut to Junk as EU Seeks to Contain Debt Crisis

Ireland joined Portugal and Greece as the third euro-area nation to have its credit rating reduced to below investment grade as European Union finance ministers struggle to contain the region’s sovereign debt crisis.

Spain May Need Even Deeper Spending Cuts in 2012, Salgado Says

Spanish Finance Minister Elena Salgado said the nation might need to endure even deeper spending cuts next year than those approved by Parliament yesterday as it battles to stave off Europe’s debt crisis.

OTHER MARKETS:

Asia Stocks, Metals Gain After China Economic Data; Yen Weakens

Asian stocks halted a two-day slump while metals and the New Zealand dollar climbed after economic data indicated China is maintaining its momentum and as investors weighed efforts to stem Europe’s debt crisis. The yen slid on speculation Japan will intervene to weaken its currency.

Oil Falls From Three-Day High on Rising Stockpiles, Europe Debt

Oil declined from a three-day high in New York as investors bet that increasing U.S. crude supplies and Europe’s spreading debt crisis signaled demand for raw materials may falter.

To contact the reporter on this story: Chanyaporn Chanjaroen in London at cchanjaroen@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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