U.S. Commodities Day Ahead: Gold Gains on European Debt Concerns

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

ECONOMIC EVENTS, AGRICULTURE REPORTS:
                                  Forecast   Prior   Time (N.Y.)
Import Price Index (MoM)   Aug    -0.8%      0.3%    8:30 a.m.
Import Price Index (YoY)   Aug    12.5%      14%     8:30 a.m.
IBD/TIPP Economic Optimism Sep    38         35.8    10 a.m.
Monthly Budget Statement   Aug    -$132 B    -90.5 B 2 p.m.
USDA Cattle Slaughter      Sep 13            132,000 2 p.m.
USDA Hog Slaughter         Sep 13            425,000 2 p.m.

METAL PRICES: ($/ton)
                 Last  % Chg RSI
Copper          8,746   -0.1  39
Aluminum        2,376   +0.2  43
Zinc            2,195   -0.8  45
Lead            2,395   -1.2  45
Nickel         21,252   -1.6  46
Tin            23,450   +0.0  41

OTHER MARKETS:
                       Last  % Chg % YTD
U.S. Dollar Index    77.247   +0.2  -2.3
Crude Oil            $88.82   +0.7  -2.8
Gold               $1,813.2   -0.1   +28
MSCI World Index   1,122.50    0.0   -12

TOP STORY:

Gold Gains in New York as European Debt Concerns Spur Demand

Gold gained in New York as concern that the European debt crisis is escalating spurred demand for the metal as a protection of wealth.

COMMODITY EXCLUSIVES:

Goldwind May Build U.S. Turbine Plant as China Demand Slows (1)

Xinjiang Goldwind Science & Technology Co., China’s second biggest wind-turbine maker, may build a factory in the U.S. as a way of increasing sales to make up for slowing demand in its domestic market.

Buses for Planes Would Save $89 Million in Subsidized Air Cities

Taxpayers would save up to $89 million a year if buses rather than planes served 38 cities where the U.S. subsidizes flights, the American Bus Association said in a study.

Ubbink Starts First East Africa Solar-Panel Factory; Will Expand

Ubbink Group, a Dutch maker of energy-saving products, started East Africa’s first solar-panel factory in Kenya, where only a fifth of families are linked to the national power grid, and will raise output fivefold by 2014.

Ethiopia Building 10 New Sugar Plants to Become Leading Exporter

Sugar Corp., Ethiopia’s state-owned producer, said it started building 10 new factories and is inviting private investment as part of a plan to become one of the world’s 10 biggest exporters of the crop.

Thailand May Cede No. 1 Rice Ranking to Raise Rural Incomes (2)

Thailand is willing to relinquish its role as the world’s biggest rice exporter as the government prepares to buy grain directly from farmers to boost prices and rural incomes, Deputy Prime Minister Kittiratt Na-Ranong said.

Record Ruble Bond Sale Curtailed as Yields Climb: Russia Credit

Russia curtailed its biggest ever auction of longer-dated bonds as concern the debt crisis in Europe will cut demand for oil pushes up the cost of borrowing for the world’s biggest energy exporter.

INDUSTRIAL METALS:

Copper May Rise on Reduced Debt-Crisis Concern, Freeport Strike

Copper may rise for the first session in three in London on reduced concern about Europe’s sovereign-debt crisis amid reports that China may invest in Italy and on a mine strike in Peru.

Copper Stocks at China Bonded Warehouses to Advance, ANZ Says

Copper held at bonded warehouses in China, the biggest user, will increase as tightened credit results in more metal held locally by international traders, possibly boosting imports and prices, according to Australia and New Zealand Banking Group Ltd.

Glencore’s Kazakhstan Zinc Unit Starts 70,000 Ton Copper Smelter

Glencore International Plc-controlled AO Kazzinc, Kazakhstan’s largest zinc producer, started operating a smelter with annual capacity of 70,000 metric tons of copper cathodes.

MINING:

Aluminum, Zinc ETPs Are Unviable on Elevated Costs, Norilsk Says

Exchange-traded products backed by physical aluminum and zinc are unviable because of relatively high storage and management costs, according to OAO GMK Norilsk Nickel, the biggest Russian mining company.

China August Copper Output Gains to Record; Aluminum Steady (2)

Copper production in China rose to a record in August as ample raw-material supplies and expectation of a rise in demand in fall prompted smelters to raise output. Aluminum output was little changed.

BHP Coal Miners Plan More Strikes in Australia Before Vote (1)

BHP Billiton Ltd.’s coking coal miners in Australia will hold more strikes before they vote on a new employment contract by the end of the month, a union leader said today.

PRECIOUS METALS:

Gold May Reach $2,000-$2,500 in the Next Year, Citigroup Says

Gold may “briefly spike” into the $2,000-$2,500 an ounce range in the next 12 months if sovereign debt concerns escalate, Citigroup Inc. said today in an e-mailed report.

Morgan Stanley Positive on Gold as ‘Perfect Storm’ Continues (1)

Gold’s “perfect storm” is expected to continue on renewed investor demand for haven assets, potentially driving the metal to its 1980 inflation-adjusted record, according to Morgan Stanley.

AGRICULTURE:

Corn Falls as U.S. Cuts Demand Outlook, Crop Conditions Improve

Corn fell for the first day in three in Chicago after the U.S. government cut its outlook for demand and said crop conditions improved. Wheat dropped as Australia forecast record exports.

Coffee Drops as Robusta Crop May Rise to Record; Sugar Declines

Coffee fell in London on speculation supply may be abundant in the season starting next month. Sugar declined.

Coffee Stocks in Importers May Have Risen in 2011, ICO Says (1)

Coffee inventories in importing countries may have increased in 2011 due to the fast pace of global exports, said Jose Sette, executive director of the International Coffee Organization.

Rubber Gains From One-Week Low as Oil Rises, Debt Concern Eases

Rubber increased from almost a one-week low as higher oil prices boosted the appeal of the commodity and concerns about Europe’s debt crisis eased after a report that China may invest in Italy.

Palm Oil Falls Most in Two Weeks After Higher Soybean Forecast

Palm oil dropped the most in more than two weeks after soybeans fell yesterday on a government report that showed world stockpiles and U.S. production will be higher than previous estimates.

Japan Seeks to Buy Most Milling Wheat in 5 Weeks in Tender (1)

Japan is seeking to buy 109,356 metric tons of milling wheat from the U.S., Canada and Australia in a regular tender on Sept. 15, the biggest volume in five weeks, the Ministry of Agriculture, Forestry and Fisheries said.

Australia Seen Shipping Record Wheat Cargoes on Bumper Harvest

Australia may ship a record amount of wheat in the coming year, displacing the European Union as the world’s second- biggest supplier, and helping cap gains in global prices.

SHIPPING:

IEA Cuts Oil Demand Forecast, Sees ‘Difficult’ Libya Restart (1)

The International Energy Agency cut global oil demand forecasts for this year and next as the economic recovery falters.

ECONOMIES:

Italy Seeks to Sell China ‘Significant’ Amount of Bonds, FT Says

The Italian government is making approaches to China with the aim of selling the cash-rich Asian country “significant” quantities of Italian bonds and investments in strategic companies, the Financial Times reported.

Inflation Fight May Double Sinopec Financing Costs: China Credit

China Petroleum & Chemical Corp., the non-financial Chinese company with the most bonds maturing next year, may have to pay twice as much to refinance debt because of Premier Wen Jiabao’s fight against inflation.

Italy Seeks $10 Billion as Contagion Slams Demand: Euro Credit

Italy is auctioning as much as 7 billion euros ($10 billion) of bonds one day after borrowing costs surged at a bill auction, as Greece’s slide toward default roils global markets.

‘Market Gods’ Awaiting Obama Temper Refi Losses: Credit Markets

Mortgage bond investors, who suffered the biggest relative losses in almost three years last month on concern that the U.S. government would accelerate refinancing, are finding relief on speculation that any plan will be limited.

U.K. Inflation Accelerates to 4.5% as Clothes Prices Jump (2)

U.K. inflation accelerated in August as the end of seasonal discounts boosted prices for items such as clothes and furniture.

OTHER MARKETS:

Stocks, Euro Fall as Sale Hurts Italian Bonds; U.S. Futures Drop

European stocks fell for a third day and the euro weakened, while Italian bonds dropped as the government sold debt. U.S. index futures declined and German bund yields slid to a record low.

European Stocks Fluctuate, U.S. Futures Drop; BNP Paribas Falls

European stocks swung between gains and losses, with the Stoxx Europe 600 Index traded near a two-year low, as bank shares reversed their earlier losses. U.S. futures dropped, while Asian shares were little changed.

Euro Falls Toward Lowest in Decade Versus Yen on Italy Debt Woes

The euro fell toward its weakest in a decade versus the yen on speculation Greece is nearing default and as Italy sold 3.9 billion euros ($5.3 billion) of bonds amid signs the region’s debt crisis is worsening.

British Pound Falls as More Surveyors See House-Price Declines

The pound dropped against the dollar for a fourth day as a report showed house-price declines accelerated last month, adding to evidence that the economic recovery is faltering.

Most Asia Stocks Rise, Rebounding From Year-Low, as Oil Advances

Most Asian stocks rose, with the benchmark regional index trading near a one-year low, as raw material and energy producers advanced on increased oil and copper prices.

Oil Rises a Second Day in New York on Forecast of Supply Drop

Oil rose for a second day in New York before data forecast to show that crude supplies declined a second week in the U.S., the largest consumer of the commodity.

Merkel Says ‘Uncontrolled Greek Insolvency’ Must Be Avoided (1)

German Chancellor Angela Merkel said she won’t let Greece go into “uncontrolled insolvency” because of the risk of contagion for other euro-area countries.

Greece Has 98% Chance of Default on Euro-Region Sovereign Woes

Greece has a 98 percent chance of defaulting on its debt in the next five years as Prime Minister George Papandreou fails to reassure investors his country can survive the euro-region crisis.

Israeli Inflation-Linked Bonds Drop on Bets Prices to Decline

Israeli inflation-linked bonds dropped, pushing yields to the highest level in a month, on speculation a report this week will show consumer prices fell.

Palestinians to Go to UN Security Council, Shtayyeh Says

Palestinians will seek full membership at the United Nations and will request approval from the UN Security Council, risking a U.S. veto, negotiator Mohammad Shtayyeh said at a press conference in Ramallah today. Palestinians will also ask the General Assembly to back their membership, Shtayyeh said.

SPORTS:

Meireles Joins Chelsea After Broken Pledges, Mail Says: Roundup

The following is a roundup of soccer stories from U.K. newspapers, with clickable links to the Web.

England’s Lawes Gets 2-Game Ban at Rugby World Cup for Striking

England forward Courtney Lawes was banned for two games at the 2011 Rugby World Cup after being found guilty of recklessly striking Argentina’s Mario Ledesma with his knee, tournament organizers said.

U.K. Soccer Clubs Rein in Wages, Freeze Squads, Survey Finds

Most U.K. soccer clubs are freezing player wages as a sluggish economy hurts ticket and jersey sales, accountancy firm PKF (U.K.) LLP said, citing a survey of the financial directors of 41 teams.

To contact the editor responsible for this story: Stuart Wallace in London at swallace6@bloomberg.net

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