U.S. Commodities Day Ahead: Raw Materials Fall on European Debt
The following are the top stories on metals, agriculture and shipping.
ECONOMIC EVENTS, AGRICULTURE REPORTS:
Forecast Prior Time
(N.Y.)
WASDE Corn End Stocks Sep 656 M 714 M 8:30 a.m.
WASDE Corn Production Sep 12,575 M 12,914 8:30 a.m.
WASDE Soybean Production Sep 3,045 M 3,056 M 8:30 a.m.
WASDE Cotton Production Sep 16.13 M 16.55 M 8:30 a.m.
WASDE Total Wheat Production Sep 2.077 M 8:30 a.m.
METAL PRICES: ($/ton)
Last % Chg RSI
Copper 8,665 -1.8 37
Aluminum 2,353 -0.6 40
Zinc 2,159 -1.2 42
Lead 2,395 -2.2 46
Nickel 21,017 -0.6 43
Tin 22,881 -2.7 37
OTHER MARKETS:
Last % Chg % YTD
U.S. Dollar Index 77.352 +0.2 -2.1
Crude Oil $85.62 -1.9 -6.3
Gold $1,835.6 -1.1 +29
MSCI World Index 1,118.00 -1.5 -13
TOP STORY:
Commodities Fall to Two-Week Low on Greek Default Speculation
Commodities fell to the lowest in more than two weeks, extending losses for a third day, as a potential Greek debt default raised concern that global economic growth is slowing and may limit demand for raw materials.
COMMODITY EXCLUSIVES:
ANC Mulls Law to Supersede Mining Contracts, Godongwana Says (1)
South Africa’s national needs should take precedence over mining companies’ desire to export and a law to overrule mine contracts may be considered, the head of the ruling party’s task team formed to study a proposal to nationalize mines said.
Indonesia’s Stock Market Value to Lure Investors, Panin Says (3)
Indonesian stocks have become more attractive to overseas investors after the world’s fourth-most populous nation overtook Malaysia as Southeast Asia’s second-largest equities market by value, PT Panin Sekuritas said.
Rio’s Murowa Eclipsed by Mbada as Zimbabwe’s Biggest Gem Miner
Rio Tinto Plc’s Murowa diamond mine has been eclipsed as Zimbabwe’s largest gem producer by Mbada Mines (Pvt) Ltd. after the closely held miner increased output, according to Robert Mhlanga, its chairman.
INDUSTRIAL METALS:
Funds Boost Bullish Commodity Bets on Stimulus Plans Outlook (2)
Funds increased bullish bets on raw materials for a fourth straight week, the longest series of gains this year, on speculation that economic-stimulus programs will lift demand for metals, grains and energy.
Copper Drops to One-Month Low as European Debt Crisis May Worsen
Copper fell to a one-month low in London on concern Europe’s sovereign-debt crisis may worsen, reducing demand.
MINING:
Impala’s Zimbabwe Unit Proposes New Plan to Sell Majority Stake
Impala Platinum Holdings Ltd.’s Zimbabwean unit, in a dispute with the government over a law to increase black ownership of the nation’s mining industry, said it will submit a new proposal to sell a majority stake in the company by November.
Sasol Profit Advances 25% on Cost Controls, Oil-Price Gains (1)
Sasol Ltd., the largest producer of motor fuels from coal, said fiscal full-year profit climbed 25 percent as oil prices rose and cost savings increased.
BHP Billiton Coal Miners Resume Strike After Pay Talks Fail (1)
BHP Billiton Ltd.’s coking coal miners in Australia went back on strike after failing to agree on pay and work conditions with management, further disrupting operations at the largest exporter of the steelmaking material.
Tin Shipments From Indonesia Fall for Second Month in August (1)
Refined-tin shipments from Indonesia, the largest exporter, fell for a second month in August as the Muslim fasting month of Ramadan slowed mining and prices of the metal declined.
BHP Billiton Coal Miners Resume Strike After Pay Talks Fail (1)
BHP Billiton Ltd.’s coking coal miners in Australia went back on strike after failing to agree on pay and work conditions with management, further disrupting operations at the largest exporter of the steelmaking material.
Banpu Agrees to Acquire Hunnu Coal in A$477 Million Deal (1)
Banpu Plc, Thailand’s biggest coal producer, agreed to buy the shares it doesn’t already own in Hunnu Coal Ltd., valuing the Australian explorer at A$477 million ($495 million).
PRECIOUS METALS:
Gold Drops for Second Day as Europe Concern Sends Dollar Higher
Gold fell for a second day as concern about a potential Greek default drove the dollar higher and some investors sold the metal to cover losses in other markets on speculation the European debt contagion is worsening.
Gold to ‘Grind’ Above $2,000 on Growth Stimulus, Barings Says
Gold will “grind” to a record above $2,000 an ounce as countries seek to curb the value of their currencies and stimulate economic growth by printing money, according to Barings Asset Management Ltd.
Gold Glitters Less After IRS Takes Its Share: Chart of the Day
Investors considering gold rather than stocks may face a larger tax bill than they expected, because the U.S. taxes long- term capital gains on precious metals at 28 percent rather than the maximum 15 percent for stocks.
Gold Bets Help Hedge Funds Weather August Market Rout (1)
Hedge funds run by Orix Investment Corp., Superfund and Four Elements Capital Management Pte benefited from the surge in gold last month, weathering the U.S. sovereign downgrade and Europe’s deepening debt crisis.
AGRICULTURE:
Soybean Output in India to Rise 5% Next Year, Ruchi Says (1)
Soybean production in India, Asia’s biggest supplier of the oilseed meal, may increase more than 5 percent next year as adequate rainfall spurs planting, according to the nation’s largest edible oil importer.
Corn May Rise on Speculation U.S. Will Lower Harvest Forecast
Corn may rise in Chicago on speculation the U.S. government will today cut its production estimate for a second month, curbing supplies from the biggest exporter of the grain.
Sugar Retreats Before Northern Hemisphere Harvest; Coffee Slides
Sugar fell to a two-month low on speculation of a surplus when Northern Hemisphere harvesting starts next month. Coffee and cocoa slid as most commodities dropped.
Russia Wheat-Export Surge Failing to Curb Drought-Fueled Rally
This year’s surge in Russian wheat exports, big enough to feed Japan for more than two years, may fail to stop a rally as global demand overwhelms supply curbed by droughts from the U.S. to Australia.
Rubber Declines for Second Day as Debt Crisis May Hurt Demand
Rubber dropped for a second day as the sovereign-debt crisis in Europe raised concern that demand for the commodity used for tires may weaken.
Soybeans Gain on Speculation of Smaller Grain Harvest in U.S.
Soybean prices in Chicago advanced amid speculation production estimates in the U.S., the biggest grower and exporter, will be cut for a second straight month on dry, hot weather.
Palm Oil Stockpiles, Output in Malaysia Drop During Ramadan (1)
Palm oil stockpiles in Malaysia, the second-biggest grower, dropped for a second month in August as output declined during the Muslim fasting month of Ramadan.
SHIPPING:
OPEC Sees Most Libya Oil Back in Six Months, Cuts Demand Outlook
Libya will be able to restore in six months most of its oil production halted in fighting against Muammar Qaddafi and resume full output in 18 months, according to the Organization of Petroleum Exporting Countries.
North Sea BFOE Crude Oil Loadings Unchanged in October (1)
Exports of the North Sea Brent, Forties, Oseberg and Ekofisk crude blends, which make up the benchmark Dated Brent, will be little changed in October, loading programs obtained by Bloomberg News showed.
North Sea October Ekofisk Oil Loadings to Decline to 14 Cargoes
Exports of the North Sea Ekofisk crude for October will drop to 14 cargoes, one less than September, a loading program obtained by Bloomberg News showed.
Oil Tanker Sails to Libya as Nation Seeks to Resume Exports (2)
An oil tanker is sailing to the Libyan port of Mellitah, a sign the nation may be resuming energy exports after months of fighting that led to the ouster of Muammar Qaddafi, ship- tracking data show.
Shipping Rally to ‘Lose Steam’ by Fourth Quarter, Barclays Says
A rally in iron-ore shipping costs is likely to “lose steam” by the fourth quarter because of a surplus of vessels seeking cargoes, Barclays Capital said.
ECONOMIES:
China Hard Landing ‘Distant Scenario’ as Demand Sustained (2)
China’s record imports and a rebound in lending signaled strength in demand that offers a bright spot in a global economy contending with Europe’s debt crisis and weakening U.S. job gains.
Germany Readies Surrender in Fight to Save Greece: Euro Credit
Germany may be getting ready to give up on Greece, as measures in the credit markets signal growing concern about the smaller nation’s ability to repay investors.
Papandreou Sets New Taxes, Cuts for Greece to Skirt Default (2)
Prime Minister George Papandreou, vowing to avoid a default and keep Greece in the euro, approved new measures to help plug a budget gap as resistance builds at home and in Europe to extending more aid to the European Union’s most-indebted nation.
Europe Stress Seen in Rates on Commercial Paper: Credit Markets
Societe Generale SA, BNP Paribas SA and Credit Agricole SA are being quoted higher rates than their competitors in the commercial paper market as the crisis in the euro zone spreads beyond Greece, Portugal and Italy.
Europe Banks at Post-Lehman Lows Show Sovereign Risk Rising (1)
Investors are valuing European banks at levels not seen since the depths of the credit crunch that followed the collapse of Lehman Brothers Holdings Inc. as concern over a Greek default and debt contagion escalates.
Draghi’s Hands May Be Tied on ECB Stimulus After Stark Resigns
Mario Draghi may find it harder to keep the European Central Bank in the vanguard of the battle against the euro region’s debt crisis after Juergen Stark resigned in protest at the bank’s bond purchases.
OTHER MARKETS:
Stocks Tumble as French Banks Drop on Greek Concern; Euro Falls
European stocks slumped as France’s three largest banks dropped as much as 13 percent, U.S. equity futures declined and the euro weakened amid speculation Germany is preparing for default by Greece. Treasuries and bunds rose.
Euro Drops to 2001 Low Versus Yen on Concern Greece May Default
The euro dropped to its lowest level since 2001 against the yen as speculation German Chancellor Angela Merkel is preparing for a Greek default curbed demand for the 17-nation currency.
Russia’s Ruble Headed for 8-Month Low Versus Dollar as Oil Dips
The ruble headed for its lowest level against the dollar in more than eight months as oil, Russia’s chief export, declined for a third day.
U.S. Stock Futures Decline Amid Concern About Greek Debt Crisis
U.S. stock futures fell, indicating the Standard & Poor’s 500 Index will extend last week’s loss, as speculation Germany is preparing for a Greek default spurred turmoil in global financial markets.
Oil Drops a Third Day on European Debt Crisis; Gulf Storms Ease
Oil fell for a third day in New York, the longest losing streak in a month, as investors bet that Europe’s debt crisis will limit economic growth. Production resumed in the Gulf of Mexico as the threat of storms eased.
Libyan Opposition Pushes Toward Qaddafi Birthplace of Sirte (1)
Libyan opposition forces pushed toward Sirte, Muammar Qaddafi’s birthplace and the last coastal town controlled by his supporters. A son of the deposed leader fled to Niger.
Cameron Urges Fresh Start With Russia After Litvinenko Killing
U.K. Prime Minister David Cameron, the first British leader to visit Russia since the 2006 murder in London of dissident Russian agent Alexander Litvinenko, urged the two countries to cooperate over shared economic interests.
Egypt Default Risk Jumps to Seven-Month High After Protests (1)
Egypt’s default risk climbed to the highest level in more than seven months as the credit default swaps traded for the first time since violent protests against the Israeli embassy in Cairo.
Kuwait Says Oil Output 2.9 Million Barrels/Day for Last 2 Weeks
Mohammad al- Busairy, Kuwait’s oil minister, said his country has been producing 2.9 million barrels a day of crude a day over the past two weeks. Al-Busairy was speaking to reporters in Kuwait.
Dubai Stocks Fall Most in 3 Weeks on Greek Debt Concern, Oil
Persian Gulf shares fell, sending Dubai’s index down the most in more than three weeks, on concern Greece may default on its debt and as crude oil dropped.
Saudi Aramco Raises Most October Crude Prices: Persian Gulf Oil
Saudi Arabia, the world’s largest oil exporter, raised official selling prices for all crude grades to customers in Asia and Europe for October and cut all costs to buyers in the U.S.
OPEC August Oil Output Rises as Saudi Arabia Boosts Production
OPEC crude oil production rose last month as Saudi Arabia, the world’s largest crude exporter, and Nigeria pumped more, according to the group’s secretariat.
Emerging Stocks Head for Two-Week Low on Greek Default Concerns
Emerging-market stocks fell, driving the benchmark index toward its lowest level in more than two weeks, amid speculation Germany is preparing for a default by Greece.
SPORTS:
Fernando Torres Faces More Time on Bench, Sun Says: Roundup
The following is a roundup of soccer stories from U.K. newspapers, with clickable links to the Web.
Wallabies Wing Breaks Thumb, Lawes Is Cited: World Cup Roundup
The following is a roundup of stories from the 2011 Rugby World Cup in New Zealand.
To contact the editor responsible for this story: Stuart Wallace in London at swallace6@bloomberg.net
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