BLBG: Asia Commodity Day Ahead: Gold Monthly Rise Biggest in 9 Years
Dec. 1 (Bloomberg) -- Gold had the biggest monthly increase in nine years, and cocoa had the largest weekly gain in six years. ThyssenKrupp AG said it will cut costs by more than 1 billion euros ($1.3 billion) this fiscal year. Freeport-McMoRan Copper & Gold Inc. may increase production cuts and take a “significant” writedown on its $26 billion acquisition of Phelps Dodge Corp., an analyst said.
PRECIOUS METALS
Gold Has Biggest Monthly Gain in Nine Years on Demand for Haven
Gold prices rose in New York, capping the biggest monthly increase in nine years, on demand for a haven following terrorist attacks in India. Gold rose $7.70, or 0.9 percent, to $819 an ounce on Nov. 28 in New York. This month, the price rose 14 percent, the most since September 1999. Platinum climbed $12.60, or 1.4 percent, to $882.30 an ounce. Silver fell 3.9 cents, or 0.4 percent, to $10.23 an ounce. Palladium gained $2.60, or 1.4 percent, to $194.25 an ounce.
Lonmin May Cut 5,400 Jobs, or 17% of Workforce, as Platinum Falls
Lonmin Plc, the world’s third-largest platinum producer, said it may cut as many as 5,400 jobs, or about 17 percent of its workforce, after prices plunged.
STEEL, COAL, URANIUM AND IRON ORE
ThyssenKrupp Plans to Reduce Costs By More Than $1.3 Billion
ThyssenKrupp AG will cut costs by more than 1 billion euros ($1.3 billion) this fiscal year as a weakening of demand from carmakers and builders leads to a “significant” drop in sales.
Cameco Temporarily Suspends Uranium Processing at Canada Plant
Cameco Corp., the world’s largest uranium producer, is suspending uranium-processing temporarily at a plant in Canada because of a dispute over supplies of hydrofluoric acid used in the production of nuclear fuel.
Metorex Shares Slump After Announcing Capital-Raising Plan
Metorex Ltd., a producer of copper in Africa, lost more than a third of its market value after it announced a plan to borrow money and sell new shares because of cost overruns at a Congolese mine.
INDUSTRIAL METALS, MINING
Freeport May Take ‘Significant’ Writedown, Dahlman Rose Says
Freeport-McMoRan Copper & Gold Inc. may increase production cuts and take a “significant” writedown on its $26 billion acquisition of Phelps Dodge Corp. because of slumping copper prices, Dahlman Rose & Co. said.
Copper Falls for Fifth Straight Month, Longest Slump Since 1999
Copper prices fell, capping the longest stretch of monthly declines since early 1999, as inventories climbed to the highest level in more than four years, signaling waning demand. Copper fell 4.2 cents, or 2.5 percent, to $1.6495 a pound in New York.
Frontera Copper Says Invecture Buys Stake, Seeking Control
Frontera Copper Corp., owner of the Piedras Verdes mine in Mexico, said closely held Invecture Group SA de C.V. has bought 16 percent of its shares and intends to purchase more until it has a controlling stake.
Rio Tinto Pension Plan Was Issue for BHP, Merrill Lynch Says
BHP Billiton Ltd., the world’s largest mining company, took into account Rio Tinto Group’s $16.5 billion pension plan liability when scrapping its hostile takeover this week, Merrill Lynch & Co. said.
Lundin Mining AB, the Canadian copper miner negotiating a takeover by HudBay Minerals Inc., said the deal will help shield it from volatile markets that have slashed the value of both companies by more than 80 percent this year.
Alcoa Doesn’t Plan to Increase Its Stake in Rio Tinto Group
Alcoa Inc., the largest U.S. aluminum producer, said it doesn’t plan to increase its stake in Rio Tinto Group after BHP Billiton Ltd. abandoned a hostile takeover.
Southern African Coal Port Full Up on Lack of Trade Finance
Southern Africa’s second-biggest coal port, Mozambique’s Maputo, is full because a lack of trade finance is causing stockpiles to build up, according to Grindrod Ltd., the continent’s largest shipping company.
AGRICULTURAL COMMODITIES
Pilgrim’s Pride Anticipates $802 Million Loss in Fourth Quarter
Pilgrim’s Pride Corp., the largest U.S. chicken producer, said it expects to report a fiscal fourth-quarter loss of $802 million partly because of an impairment charge from the purchase of Gold Kist Inc.
Corn, Soybeans Decline as Global Economic Slump Reduces Demand
Corn and soybeans fell, capping the fifth straight month of declines, on speculation that a slumping global economy will reduce demand for meat, milk and eggs. Corn fell 5.25 cents, or 1.4 percent, to $3.6575 a bushel in Chicago. Soybeans declined 3 cents, or 0.3 percent, to $8.83 a bushel.
Wheat Gains as Egypt Buys U.S. Supplies, Bans Ukraine Grain
Wheat rose after Egypt, the world’s largest buyer of the grain, bought supplies from the U.S. and on a report that the North African country had suspended imports from Ukraine. Wheat rose 7.25 cents, or 1.3 percent, to $5.6125 a bushel in Chicago.
Hogs Have Biggest Monthly Gain in Six Years; Cattle Decline
Hog futures rose, capping the biggest monthly gain in six years, on signs that the record supply of animals to U.S. slaughterhouses this year is slowing. Hogs rose 1.25 cents, or 1.9 percent, to 67.025 cents a pound in Chicago. Cattle futures fell 0.5 cent, or 0.6 percent, to 87.65 cents a pound.
Kenya Tea Stockpiles Expand as Buyers Struggle to Finance Trade
Warehouses in the Kenyan port city of Mombasa, host to the world’s biggest tea auction, are filling up with the crop as buyers struggle to secure financing for cargoes, Africa Tea Brokers Ltd. said.
SOFT COMMODITIES
Cocoa Climbs, Caps Biggest Weekly Gain Since 2002; Sugar Rises
Cocoa prices rose, capping the biggest weekly gain in six years, on signs that the annual surplus of the commodity is shrinking. Cocoa added $73, or 3.3 percent, to $2,294 a metric ton in New York. Raw-sugar rose 0.09 cent, or 0.8 percent, to 11.90 cents a pound.
Cotton Rises as Demand Increases; Coffee, Orange Juice Decline
Cotton futures rose to the highest in a month on speculation that demand will increase after prices slumped to a six-year low. Cotton rose 1.36 cents, or 2.9 percent, to 47.91 cents a pound in New York. Arabica coffee slid 0.2 cent, or 0.2 percent, to $1.161 a pound. Orange-juice futures declined 2.55 cents, or 3.3 percent, to 74.35 cents a pound.
OTHER COMMODITIES
Aracruz Board Members, Executives, Resign After $2 Billion Loss
Aracruz Celulose SA, the Brazilian pulpmaker posting a $2.13 billion expense on bad currency bets, said three board members and four executives will step down after the resignation of Chief Financial Officer Isac Zagury.
Commodities Near Bottom on Consumer Rebound: Chart of the Day
Commodity prices that plunged from records since the end of June may be “near a bottom” as a return of consumer confidence signals a rebound, said Dale Durchholz, at AgriVisor LLC in Bloomington, Illinois.
For Related News: Top commodity stories: CTOP Top metals stories: METT Top agriculture stories: TOP AGR
