U.S. Commodities Day Ahead: Copper Falls on Credit-Rating Cuts

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

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

Producer Price Index MoM      AUG      0.0%       0.2%      8:30
PPI Ex Food & Energy MoM      AUG      0.2%       0.4%      8:30
Producer Price Index YoY      AUG      6.5%       7.2%      8:30
PPI Ex Food & Energy YoY      AUG      2.6%       2.5%      8:30
Advance Retail Sales          AUG      0.2%       0.5%      8:30
Retail Sales Less Autos       AUG      0.2%       0.5%      8:30
Retail Sales Ex Auto & Gas    AUG      0.3%       0.3%      8:30
NOPA Monthly Oil Stocks       AUG               2530010     8:30
NOPA Soybean Capacity Crush   AUG               122952      8:30
NOPA Monthly Oil Yield        AUG               11.68       8:30

Metal Prices: ($/ton)
                Last  % Chg RSI
Copper          8,736   -0.4  39
Aluminum        2,365   -0.2  42
Zinc            2,181   -0.6  44
Lead            2,366   -1.0  43
Nickel         21,200   -0.5  45
Tin            23,282   -1.6  40

Other Markets:
                       Last  % Chg % YTD
U.S. Dollar Index    76.945   -0.2  -2.6
Crude Oil            $89.70   -0.6  -1.8
Gold               $1,834.3   +0.0   +29
MSCI World Index   1,138.05   +0.3   -11

TOP STORY:

Copper Falls as Credit-Rating Cuts Stoke Debt-Crisis Concern

Copper fell in London on concern about Europe’s sovereign- debt crisis after Moody’s Investors Service lowered credit ratings for two of France’s three largest banks by assets.

COMMODITY EXCLUSIVES:

Indian Steel Ministry Recommends Raising Iron Ore Export Tax (1)

India, the world’s third-largest iron-ore exporter, should increase the tax on overseas sales of the raw material to 30 percent to curb shipments and boost local supplies, Steel Minister Beni Prasad Verma said.

Ghana Economy May Grow 20% on Oil, Gold, Cocoa, World Bank Says

Ghana’s economy may expand by 20 percent this year as the start of oil production for export, along with high prices for cocoa and gold, boost revenue, according to the World Bank.

Korean Offshore Wind Farm Helps Shipyards Challenge Siemens (2)

South Korea’s investment in a 9.2 trillion won ($8.4 billion) offshore wind farm may help domestic shipbuilders challenge Siemens AG and Vestas Wind Systems A/S in the global turbine market.

Fuel-Oil Loss Set for Two-Year Low on Supplies: Energy Markets

Refining losses from producing fuel oil in Asia are headed toward the lowest level in almost two years as Russian and Indian producers cut output while Japanese and Chinese demand increases.

Romanian Utilities May Get 75 Million Free 2013-2020 CO2 Permits

Romania may give about 75 million free carbon permits to energy producers in the seven years starting in 2013, with oil company OMV Petrom SA and two state-owned power plants poised to get almost half of the allowances.

Gold Shares to Beat Market, Push Nearer Record: Chart of the Day

Gold shares will extend gains that have seen them beat the stock market by 25 percentage points in the past two months and push them closer to a record against a gauge of global equities, according to RBC Capital Markets Ltd.

INDUSTRIAL METALS:

Nippon Steel Said to Be in Talks to Acquire Usiminas Stake (1)

Nippon Steel Corp., Japan’s largest steelmaker, and Brazil’s Gerdau SA are in talks to stave off a rival $2.9 billion bid for a stake in Usinas Siderurgicas de Minas Gerais SA, or Usiminas, said two people familiar with the negotiations.

MINING:

Metalloinvest’s Iron-Ore Output Climbs 7% on ‘Mining Efficiency’

Metalloinvest Holding Co., Russian billionaire Alisher Usmanov’s mining company, said iron-ore output rose 7 percent in the first half from the previous half following gains in “mining efficiency.”

Jastrzebska, Bogdanka Advance After Polish Court Rules on Taxes

Jastrzebska Spolka Weglowa SA and Lubelski Wegiel Bogdanka SA, Poland’s only publicly traded coal producers, climbed after a Polish Constitutional Tribunal ruling on mining taxes.

Philippines Seeks to Boost Earnings From Mining, Paje Says

The Philippines is seeking to boost earnings from mining by declaring more areas exclusively for that purpose, Environment Secretary Ramon Paje told reporters in Manila today.

Freeport Miners in Peru, Indonesia Will Go on Strike Over Wages

Freeport-McMoRan Copper & Gold Inc.’s copper miners in Peru and Indonesia will go on strike today after pay-increase talks broke down, union officials said.

PRECIOUS METALS:

Gold May Climb to $2,500 by 2013, Newmont’s O’Brien Says (1)

Newmont Mining Corp., the largest U.S. gold producer, said the price of bullion may jump 36 percent to $2,500 an ounce by 2013.

Gold May Fall in London as Europe’s Debt Woes Bolster Dollar

Gold may decline in London as concerns about Europe’s debt crisis bolster the dollar and cut demand for the metal as an alternative asset.

AGRICULTURE:

India Signs Deals to Ship 500,000 Tons Rice After Ban Lifted

Indian traders have signed contracts to export about 500,000 metric tons of non-basmati rice since the government scrapped a ban on shipments by private companies last week, an exporter said.

Sugar Falls to 10-Week Low on Supply Outlook; Coffee Declines

Sugar fell to a 10-week low in London on prospects for higher European production. Robusta coffee dropped to the lowest price in five weeks.

Pakistan Lost 3 Million Bales of Cotton to Flooding, Akhtar Says

Flooding in Sindh province in Pakistan, the world’s fourth- biggest cotton grower, damaged an estimated 3 million bales of fiber, a government official said.

Corn Futures Extend Losses as U.S. Crop Improves, Soybeans Drop

Corn fell, extending its biggest slump in a week, as the condition of the U.S. crop improves and soybeans dropped after the Department of Agriculture’s global supply-and-demand report showed rising inventories.

Sugar Surplus Estimate Is Cut 50% at Czarnikow on Brazilian Cane

The sugar market will be in surplus by 5.3 million metric tons in the 2011-12 season, about 50 percent below May’s 10.3 million-ton estimate, according to C. Czarnikow Sugar Futures Ltd.

Japan Purchases 1,000 Tons of Feed Wheat in Tender (1)

Japan bought 1,000 metric tons of feed wheat today through a tender system introduced to loosen government grain-import controls, the Ministry of Agriculture, Forestry and Fisheries said.

SHIPPING:

Maersk Lured by $1.5 Trillion Asia-Africa Trade: Freight Markets

A record surge in trade between Asia and Africa to as much as $1.5 trillion by 2020 is prompting companies including AP Moeller-Maersk A/S and Deutsche Post AG to expand shipping links between the continents.

Exports of 12 Main North Sea Crudes to Increase 4.4% in October

Daily exports of 12 main grades of North Sea crude oil will increase by 4.4 percent next month, loading programs obtained by Bloomberg News showed.

Container-Ship Glut Clips Peak Season Asia-EU Rates, Maersk Says

A.P. Moeller-Maersk A/S, the No. 1 container line, said it’s struggling to raise peak-season rates on the Asia-Europe shipping route, the world’s second-busiest, as an influx of new vessels leads to a glut in capacity.

ECONOMIES:

Wen Says World Must Get ‘Houses in Order,’ Not Rely on China (1)

Chinese Premier Wen Jiabao, facing calls to widen support for indebted European countries, signaled that developed nations should cut deficits and create jobs rather than relying on China to bail out the world economy.

ADB Says Asia Inflation Risk Persists Even as Growth Outlook Cut

The Asian Development Bank said inflation will put pressure on regional policy makers to manage price increases even as a faltering global recovery reduces economic growth.

Greece Should ‘Default Big’ to Address Crisis, Blejer Says (1)

Mario Blejer, who managed Argentina’s central bank in the aftermath of the world’s biggest sovereign default, said Greece should halt payments on its debt to stop a deterioration of the economy that threatens the European Union.

Geithner Takes Tougher Tone as European Crisis Roils Markets (1)

Treasury Secretary Timothy F. Geithner will urge European governments to step up their crisis- fighting efforts amid Obama administration concerns that the region’s woes may hurt the U.S. economy.

Pessimism Surges as 72% See U.S. Economy on Wrong Course in Poll

Americans’ pessimism about the economy has deepened and confidence in both political parties has fallen with only 20 percent saying the country is on the right course even as they remain divided over solutions.

OTHER MARKETS:

European Stocks Advance on China Support Bets; Treasuries Fall

Stocks rose for a second day in Europe and U.S. index futures gained, reversing earlier losses, on speculation China may still offer support for the region. Treasuries fell, while oil and copper pared declines.

Euro Advances Versus Dollar; Strengthens 0.3 Percent to $1.3724

The euro strengthened versus the dollar, trading 0.3 percent higher at $1.3724 as of 11:39 a.m. in London.

Asia Currencies Drop on Europe Crisis, ADB Growth-Outlook Cut

Asian currencies weakened, led by South Korea’s won, as concern the region’s economic growth is slowing and Europe’s debt crisis is worsening sapped demand for emerging-market assets.

U.S. Stock Futures Advance; Dell Gains as Goldman Sachs Slides

U.S. stock futures climbed, erasing earlier losses, after a report that China may offer support for the most-indebted euro- area economies.

Oil Drops From Six-Week High as Europe Crisis Threatens Demand

Oil declined from a six-week high on concern that Europe’s debt crisis and the faltering U.S. economic recovery will temper fuel demand.

Obama Approval Plummets Among Americans Skeptical of Jobs Plan

A majority of Americans don’t believe President Barack Obama’s $447 billion jobs plan will help lower the unemployment rate, skepticism he must overcome as he presses Congress for action and positions himself for re- election.

SPORTS:

Birmingham City’s Yeung Loses Court Permission to Travel (2)

Hong Kong’s High Court overruled a lower court decision allowing Birmingham International Holdings Ltd. Chairman Carson Yeung to leave Hong Kong while on bail, according to Yeung’s lawyer Clive Grossman.

Bolton Chasing Chilean Star Magnasco, Mirror Says: Roundup

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

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

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