Asia Commodity Day Ahead: Copper Surges Most Since March

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

ECONOMIC EVENTS, AGRICULTURE REPORTS:
                                     Forecast   Prior      Time
                                                         (N.Y.)
Advance Retail Sales          JUL       0.5%      0.1%      8:30
Retail Sales Less Autos       JUL       0.3%      0.2%      8:30
Retail Sales Ex Auto & Gas    JUL       0.2%      0.2%      8:30
U. of Michigan Confidence     AUG P     62.0      63.7      9:55
Business Inventories          JUN       0.5%      1.0%     10:00
USDA Cattle Slaughter         AUG 12            126000     14:00
USDA Hog Slaughter            AUG 12            409000     14:00

Metal Prices: ($/ton)
                 Last  % Chg RSI
Copper          8,881   +3.3  36
Aluminum        2,413   +0.7  35
Zinc            2,186   +4.1  37
Lead            2,385   +4.8  39
Nickel         21,600   +3.0  35
Tin            23,605   +3.8  32

Other Markets:
                       Last  % Chg % YTD
U.S. Dollar Index    74.542   -0.4  -5.7
Crude Oil            $85.72   +3.4  -6.2
Gold              $1,751.50   -1.8   +23
MSCI World Index   1,166.54   +3.2  -8.9

TOP STORY:

Copper Surges Most Since March as U.S. Jobless Claims Decline

Copper futures in New York rose the most since March after claims for unemployment-insurance payments unexpectedly fell in the U.S., tempering concern that the economy is faltering.

COMMODITY EXCLUSIVES

MMX Aims to Secure $1.8 Billion Funding Before Year-End (1)

MMX Mineracao & Metalicos SA, the iron-ore producer controlled by Brazilian billionaire Eike Batista, will seek $1.8 billion in loans for its Serra Azul project as soon as late September.

Tata Bonds Beat Steel Companies on Rating Upgrade: India Credit

Tata Steel Ltd. bonds are rallying the most since May 2010, beating competitors’ debt on speculation a rating upgrade will help India’s most-indebted company reduce funding costs.

INDUSTRIAL METALS:

Lithium Use May Triple on Electric-Vehicle Growth, Talison Says

Lithium demand may triple by 2020 as more of the metal is used in batteries for electric vehicles, said Peter Oliver, chief executive officer of Talison Lithium Ltd., the world’s largest producer.

MINING:

Molycorp Raises Rare-Earth Forecast as Profit Beats Estimates

Molycorp Inc., owner of the largest rare-earth deposit outside China, raised its full-year production forecast and posted second-quarter profit that beat analysts’ estimates as mine sales volumes tripled.

Rare-Earth Prices May Move on Chinese ‘Hot Money,’ Neo Says

Chinese speculators stockpiling rare-earth minerals may have more of an effect on the market for the commodities than suppliers or users, said Neo Material Technologies Inc., a Canadian metals processor.

BlackRock Buys ‘Compellingly Cheap’ Miners on Price Outlook (1)

BlackRock Inc., the world’s biggest money manager, is buying mining stocks this week amid a global rout in shares of raw materials producers sparked by concern slowing economic growth will sap demand for commodities.

PRECIOUS METALS:

Gold Falls Most in Seven Weeks as Equities Jump, Margins Raised

Gold futures fell the most in seven weeks in New York as equities rebounded and CME Group Inc. boosted margins to trade Comex contracts, prompting investor sales after a rally to a record topping $1,800 an ounce.

AGRICULTURE:

Potash Corp., Mosaic Rise After USDA Cuts Corn Forecast (1)

Potash Corp. of Saskatchewan Inc., Mosaic Co., and CF Industries Holdings Inc. led fertilizer producers higher after the U.S. Department of Agriculture said the country’s corn harvest will be smaller than expected.

U.S. Cotton-Crop Estimate Raised on California Harvest Gain (2)

The cotton-production forecast in the U.S., the world’s largest exporter, was unexpectedly raised by the government on signs that surging output in California and Georgia will ease crop losses from a drought in Texas.

Sugar Rises as Brazil Output May Shrink; Coffee, Cocoa Advance

Sugar rose to the highest price in more than a week as an industry group in Brazil, the world’s largest producer, cut its cane-crop forecast. Coffee and cocoa also gained.

Cattle, Hogs Gain on Tightening Supplies Amid Rising Feed Costs

Cattle futures jumped to a five-week high on speculation that rising feed costs will force U.S. beef producers to curb output. Hog prices also climbed.

Orange Juice Rises on Atlantic Storm Concern; Cotton Declines

Orange-juice futures gained the most in seven weeks on signs of increased storm activity in the Atlantic Ocean, spurring concern that crops may face damage in Florida, the world’s second-biggest producer. Cotton fell.

Grains, Soybeans Surge After Adverse Weather Cuts U.S. Crops

Corn, soybean and wheat prices surged, signaling higher costs for food and biofuels, after the government said U.S. farmers will harvest smaller crops than forecast last month following a damaging heat wave.

Cargill Restarts Turkey Production After Salmonella Outbreak (1)

Cargill Inc. said the Department of Agriculture allowed the restart of all ground-turkey production at an Arkansas plant a week after the company recalled almost 36 million pounds of the meat because of a salmonella outbreak.

Commodities Rise as U.S. Jobs Report Boosts Optimism on Economy

Commodities rose, capping the biggest two-day gain in three months, after an unexpected drop in U.S. jobless claims spurred optimism for the U.S. economy, bolstering prospects for crop and industrial-metal demand.

SHIPPING:

Baltic Dry Index Reaches Two-Week High as Capesize Rents Climb

The Baltic Dry Index, a measure of commodity-shipping costs, rose to the highest level in two weeks on stronger rents for capesize vessels that haul coal and iron ore.

ECONOMIES:

Yield Curve Flattest Since ‘08 on Rate Outlook: China Credit

Five interest-rate increases since September are driving the spread between yields on China’s short-term debt and long- term bonds to the least since 2008, amid speculation inflation will slow from a three-year high.

U.S. Economy: Jobless Claims Unexpectedly Fell Last Week (1)

Claims for U.S. unemployment benefits unexpectedly dropped last week to a four-month low, signaling the job market is being hampered by a lack of hiring rather than more firings.

Singapore Miracle Dimming as Income Gap Widens Squeeze by Rich

Economic miracles sometimes need course corrections, even in Singapore, which last year was home to more U.S. dollar- millionaire households per capita than any other country, according to Boston Consulting Group Inc.

Mortgage Rates for 30-Year U.S. Loans Decline to Nine-Month Low

Mortgage rates for 30-year loans in the U.S. declined to a nine-month low as concern grew that the nation’s economy is slowing.

OTHER MARKETS:

U.S. Stocks Rally as Jobless Claims, Profits Offset Europe Woes

U.S. stocks rallied, reversing yesterday’s drop for the Standard & Poor’s 500 Index, as a decline in jobless claims and better-than-estimated corporate earnings tempered concern Europe’s debt crisis is worsening.

Swiss Franc Drops Most Since 1999 on Possible Peg; Kiwi Climbs

The franc tumbled the most against the euro since the shared currency’s 1999 debut after Swiss National Bank Vice President Thomas Jordan said a temporary peg to the euro would be legal as policy makers try to stem the franc’s gains.

Canada’s Dollar Rises From Almost Six-Month Low as Stocks Surge

Canada’s dollar advanced from almost its lowest level since February as a rally in stocks reduced demand for the greenback as a refuge.

European Stocks Rally the Most Since May 2010; Salzgitter Surges

European stocks rose, with the Stoxx Europe 600 Index surging the most since May 2010, as investors speculated that recent losses have overestimated the slowdown in the pace of economic growth.

Crude Oil Advances on Lower Jobless Claims, Increase in Equities

Crude oil advanced as declining U.S. jobless claims sent equities higher, adding to optimism that U.S. economy is strengthening.

SPORTS:

Woods Shoots His Worst Opening Round Ever in Major at PGA

Through the opening hour of the U.S. PGA Championship, Tiger Woods was in a familiar position: tied for the lead.

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