U.S. Commodities Day Ahead: Cattle Seen at Record After Cull

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

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

U.S. Housing Starts           AUG     590K     604K         8:30
U.S. Housing Starts MoM       AUG     -2.3%    -1.5%        8:30
U.S. Building Permits         AUG     590K     601K         8:30

METAL PRICES: ($/ton)
                 Last  % Chg RSI
Copper          8,415   +0.6  34
Aluminum        2,344   +0.1  40
Zinc            2,118   +0.9  40
Lead            2,318   +0.7  41
Nickel         21,300   +1.5  47
Tin            23,150   +1.9  42

OTHER MARKETS:
                       Last  % Chg % YTD
U.S. Dollar Index    77.057   -0.1  -2.5
Crude Oil            $86.65   +1.1  -5.2
Gold               $1,786.1   +0.4   +26
MSCI World Index   1,160.06   +0.3  -9.4

TOP STORY:

Cattle Seen at Record $1.36 a Pound After Cull: Commodities (1)

Texas cattle ranchers, the biggest suppliers in the world’s top beef-producing nation, will cull the most breeding cows ever this year as drought increases feed costs, driving livestock prices to a record.

COMMODITY EXCLUSIVES:

Libya Seeks Oil-Tanker Charters Following Seven-Month Stoppage

Libya’s state oil-tanker company is seeking to resume international chartering of its fleet after a seven-month halt caused by an uprising that led to the ousting of Muammar Qaddafi as national leader.

Mechel Said to Delay Plan to Sell Shares in Coal-Mining Unit

OAO Mechel, Russia’s largest producer of coking coal, has delayed a plan to sell shares in a mining unit because of unfavorable market conditions, said three people with knowledge of the matter.

China BAK Plans to List Electric-Vehicle Battery Unit to Expand

China BAK Battery Inc., a lithium- ion battery maker, plans to list electric-vehicle battery unit BAK International (Tianjin) Ltd. to fund expansion and research.

OPEC’s $1 Trillion Cash Quiets Poor on Longest Ever $100 Oil (1)

Saudi Arabia will spend $43 billion on its poorer citizens and religious institutions. Kuwaitis are getting free food for a year. Civil servants in Algeria received a 34 percent pay rise. Desert cities in the United Arab Emirates may soon enjoy uninterrupted electricity.

ArcelorMittal’s First Indian Steel Mill May Beat Posco Plant (1)

ArcelorMittal may beat South Korea’s Posco to become the first overseas steelmaker to build a plant in India, with Karnataka state authorities set to hand over land for the $6.3 billion project in the next six months.

Qaddafi Wheat Cargo Helped Sustain Libyan Rebellion’s Stronghold

Wheat paid for by Muammar Qaddafi’s government ended up helping to sustain the rebellion that overthrew his 42-year rule of Libya after it was diverted to his rivals’ stronghold.

Armajaro Hires Ex-Barclays Capital Analyst Yu for Singapore

Armajaro Asset Management, the hedge-fund company run by Anthony Ward , hired ex-Barclays Capital analyst Yingxi Yu to work in Singapore, according to an e-mail from a spokesman, who declined to be identified.

Teekay Profit Booms on LNG Shipping Demand: Freight Markets

In a year when commodity carriers, oil tankers and container ships have lost money on the biggest trade routes, owners of vessels hauling liquefied natural gas are poised for the best rates ever.

INDUSTRIAL METALS:

Copper Rises From Nine-Month Low as Rio Sticks to Demand Outlook

Copper rose in London, rebounding from a nine-month low, as producer Rio Tinto Group left its forecast for demand unchanged and said supply of the metal remains hampered.

Copper Fees May Decline on Japan’s Return, Strikes, ANZ Says

Copper-processing fees may drop for annual 2012 contracts as Japanese smelters return to full capacity after an earthquake and strikes at mines cut supplies of ore, according to Australia & New Zealand Banking Group Ltd.

Rio Tinto CEO Says Markets Are ‘Softer’ Than Six Months Ago (2)

Rio Tinto Group, the world’s second-largest mining company, said commodities markets are “softer” than six months ago due to concerns over the health of developed economies.

MINING:

Zambians Vote in Election as Candidates Differ on Copper Policy

Zambians voted today in the second election in three years in a contest that may define how the country spends the proceeds of a rapidly expanding copper industry.

Rio Boosts Copper Mineral Resources at Kennecott to 106 Mln Tons

Rio Tinto has increased its copper mineral resources by 20 million tons to 106 million tons at its wholly-owned Kennecott Utah Copper Bingham Canyon Mine. The company released the information in a regulatory filing.

PRECIOUS METALS:

Gold Gains in London as European Debt Concern Spurs Demand

Gold rebounded from its biggest drop in a week in London as concern about Europe’s debt crisis spurred demand for the metal as a protection of wealth.

Swiss Monthly Imports, Exports of Platinum-Group Metals (Table)

The following is a table of monthly Swiss imports and exports of platinum, palladium and rhodium. The figures include raw form or powder and half-processed material, and were sent in an e-mail by the Swiss Federal Customs Administration. Amounts are in kilograms. One kilogram equals 2.2 pounds.

Gold Price May Reach $2,300 in 2012, Newmont CEO O’Brien Says

Gold may rise to $2,000 an ounce by the end of this year and $2,300 an ounce by the close of 2012 as investors buy the metal as a haven amid turmoil in financial markets, Newmont Mining Corp. Chief Executive Officer Richard O’Brien said.

AGRICULTURE:

Egypt to Boost Wheat Imports to Avert Unrest, El Attal Says (1)

Egypt, the world’s biggest wheat buyer, plans to boost imports this year to build domestic stockpiles and prevent future political unrests fueled by high food prices, the nation’s Agricultural Export Council said.

Palm Oil Advances on Speculation Malaysian Exports May Rebound

Palm oil gained on speculation that exports from Malaysia, the second-biggest producer, may rebound as worsening U.S. soybean crop conditions threaten to reduce global vegetable oil supplies.

Corn, Soybeans Advance as Adverse U.S. Weather May Hurt Crops

Corn, soybeans and wheat rose in Chicago on speculation adverse weather may damage crops in the U.S., the biggest exporter, and on increasing demand from China.

Rubber Drops to Two-Month Low as Debt Crisis May Hurt Demand

Rubber slumped to the lowest level in more than two months after Italy’s credit rating was cut, deepening concern that Europe’s debt crisis is spreading, stalling the economic recovery and curbing raw-materials demand.

Coffee Climbs on Speculation La Nina May Hurt Crops; Cocoa Rises

Coffee climbed in London and New York on concerns the return of La Nina, a weather pattern associated with cooler than normal temperatures in the Equatorial Pacific Ocean, may hurt crops. Cocoa advanced.

China’s Wheat Imports May Rise, Canadian Wheat Board Forecasts

China’s wheat imports may rise to 1.3 million metric tons in 2010-2011 from 1 million tons a year earlier, the Canadian Wheat Board said. China is a net importer, with exports estimated at 500,000 tons, Shi Haiguang, vice president, said at a conference in Singapore today.

SHIPPING:

Credit Suisse Does First Brokered Coking Coal Swap, FIS Says

Credit Suisse Group AG concluded the world’s first brokered coking coal swaps trade, London-based Freight Investor Services Ltd. said.

ECONOMIES:

Italy Credit Rating Cut by S&P as Debt-Crisis Contagion Spreads

Italy’s credit rating was cut by Standard & Poor’s, the country’s first downgrade in five years, as Greece’s worsening fiscal crisis fans concern that contagion will engulf countries such as Spain and Italy.

Greek Default Specter Leaves Germans Facing Bad-Bank Bill

Germany’s bad banks, backed by the state to prevent the collapse of Hypo Real Estate Holding AG and WestLB AG during the credit crisis, would be the hardest hit in the event of a Greek default, leaving taxpayers to shoulder the bill a second time.

Fed Likely to Announce ‘Operation Twist’ Easing, Economists Say

Federal Reserve officials tomorrow will probably announce a program for monetary easing that will do little to help 14 million unemployed Americans find work, according to economists in a Bloomberg News survey.

German Investor Confidence Declines After Outlook Worsened (2)

German investor confidence fell to the lowest in more than 2 1/2 years in September as Europe’s debt crisis and a global slowdown damped the outlook for growth.

OTHER MARKETS:

European Stocks Gain on Greek Debt Talks; Italy CDS at Record

European stocks rallied after the biggest drop in a week as Greece described its debt talks as “productive” and investors speculated the Federal Reserve will provide more stimulus. The cost of insuring Italy’s debt rose to a record after Standard & Poor’s cut the nation’s credit rating.

Euro Snaps Two-Day Decline Versus Dollar as European Stocks Gain

The euro snapped a two-day decline against the dollar as gains in European stocks boosted sentiment toward the currency while Greece said talks aimed at staving off a default were “productive.”

Asian Currencies at Six-Month Low on Europe Woes, Growth Concern

Asian currencies weakened, with South Korea’s won and Malaysia’s ringgit reaching 2011 lows, on concern Europe’s worsening debt crisis will spur an exodus from emerging-market assets.

US Airways Puts Highest Since 2007 Show Most Pessimism: Options

US Airways Group Inc. options traders are skeptical the nation’s fifth-largest carrier will avoid a global economic slowdown, driving up insurance against declines to the highest levels since 2007.

SPORTS:

Italy Scores 9 Tries in 53-17 Win Over Russia at Rugby World Cup

Italy scored nine tries in beating Russia 53-17 in a Rugby World Cup Pool C match in Nelson, New Zealand.

Man. United Pays Out Record Bonuses to Staff, Mail 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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