The following are the top stories on metals, agriculture and shipping. ECONOMIC EVENTS, AGRICULTURE EVENTS: Forecast Prior Time (N.Y.) MBA Mortgage Applications OCT 29 3.2% 7:00 Challenger Job Cuts YOY OCT -44.1% 7:30 ADP Employment Change OCT 20K -39K 8:15 ISM Non-Manf. Composite OCT 53.5 53.2 10:00 Factory Orders SEPT 1.6% -0.5% 10:00 FOMC Rate Decision NOV 3 0.25% 0.25% 14:15 Domestic Vehicle Sales OCT 8.9M 8.82M 17:00 Total Vehicle Sales OCT 11.8M 11.73M 17:00 USDA Broiler Eggs Set OCT 29 199012 15:00 Metal Prices: ($/ton) Last %Chg Aluminum 2,335 +0.2 Copper 8,430 -0.1 Lead 2,500 +0.4 Zinc 2,470 +0.7 Nickel 23,599 +0.5 Tin 25,899 +0.4 Other Markets: Last %Chg %YTD U.S. Dollar Index 776.78 +0.1 -1.4 Crude Oil $84.20 +0.4 +6.1 Gold $1,355.35 -0.2 +24 MSCI World Index 1,234.69 +0.1 +5.7 EXCLUSIVE: China Can Use More Copper Than World Has Now With Yang’s Stove China’s worldwide search for copper begins in the gnarled hands of 76-year-old Yang Caiguan, who is fiddling with the cables of his digital television tuner. China’s Drive for Rural Growth Fuels Hunger for Copper: Video Chinese businessmen and citizens in Dao County, Hunan Province, China talk about the government’s drive to emulate coastal growth in rural areas, and the resulting demand for copper. INDUSTRIAL METALS: Copper May Increase on Expectation Fed Measures May Buoy Demand Copper, little changed, may advance for a third consecutive day in London on expectations the Federal Reserve is preparing further stimulus for the U.S. economy that may weaken the dollar and buoy commodities demand. China 2010 Copper Use to Beat Forecast, Antaike Says Copper consumption in China, the largest user, will be higher than expected this year because of strong demand from makers of autos, air-conditioners and electronics, Beijing Antaike Information Development Co. said. China Unlikely to Sell Copper From Reserves Now, Nanhua Says China isn’t likely to sell copper from state reserves under current circumstances, an analyst said today. “The State Reserve Bureau is more likely to sell when the local cash premium is as high as 1,000-2,000 yuan a ton,” said Zhu Bin, president of Nanhua Futures Co.’s research department, at a conference today. Canada Blocks Taseko’s Prosperity Mine on Environment Canada said it won’t allow Taseko Mines Ltd. to proceed with its Prosperity gold and copper project in British Columbia project under its current plan because it would cause too much damage to the environment. MINING: Chinalco Seeks to Take Part in Oyu Tolgoi, Zhao Says Aluminum Corp. of China, the nation’s biggest producer of the metal, is seeking to participate in the Oyu Tolgoi copper and gold project in Mongolia that’s being developed by Ivanhoe Mines Ltd. and Rio Tinto Group. China to Sell 50,000 Tons of Zinc From State Reserves China, the world’s largest zinc producer, will sell 50,000 metric tons of the metal from state stockpiles, boosting domestic supplies as an energy-saving drive curbs output and boosts prices. Metal Producers Rise in Shanghai, Shenzhen on Reserves Report China’s minor metal producers rose in Shanghai and Shenzhen trading after a report saying that China is studying the start of strategic reserves for 10 metals. Xstrata Raises Bid for Sphere by 20% to A$514 Million Xstrata Plc, the biggest exporter of coal used in power plants, raised its cash offer for Sphere Minerals Ltd. 20 percent to A$514 million ($513 million) after the iron ore company’s holders failed to support the agreed deal. PRECIOUS METALS: Gold Drops Amid Speculation Fed’s Easing May Miss Expectations Gold declined amid speculation that a second round of so- called quantitative easing from the Federal Reserve may miss investors’ expectations, boosting the U.S. currency and hurting demand for the precious metal. China Gold Plans HK$1.95 Billion Hong Kong IPO, Sing Tao Reports China Gold International Resources Corp. plans to raise HK$1.95 billion in an initial public offering in Hong Kong, Sing Tao Daily News said, citing people it didn’t identify. The shares are scheduled to start trading on Nov. 26, the newspaper said. China Gold is also listed in Canada. AGRICULTURE: Australia Wheat Output Forecast at 23.19 Million Tons, FAS Says Wheat production in Australia is forecast at 23.19 million metric tons this season, unchanged from a July estimate, the U.S. Foreign Agricultural Service said in a report. Wall Says Province to Sue Canada If BHP Bid Approved Saskatchewan is poised to sue the federal government if Canada approves BHP Billiton Ltd.’s $40 billion hostile takeover offer for Potash Corp. of Saskatchewan Inc., Premier Brad Wall said. Wheat Advances as Dry Weather Threatens U.S. Crop Development Wheat futures advanced as dry weather in the growing regions of the U.S. threatened crop development in the world’s largest exporter. Corn Premiums Steady as U.S. Farmers Curb Sales; Soy Bids Drop Cash premiums for corn shipped to export terminals near New Orleans this month were unchanged after futures touched a two- year high yesterday, encouraging farmers to hold supply. Soybean premiums fell for a second day. Vietnam Plans Warehouses to Stockpile Rice, Nong Nghiep Reports Vietnam’s government wants more warehouses for rice stockpiling, Nong Nghiep newspaper reported, citing Ho Xuan Hung, deputy minister of agricultural and rural development. Fonterra Says Milk Powder Prices Gain on China Demand Whole milk powder auction prices rose for the first time in six weeks as strong demand in China and emerging economies outpaced an increase in supply. Sinograin Halts Grain Trade to Stabilize Prices, CBN Says China Grain Reserves Corp., also known as Sinograin, has temporarily halted grain trading operations with the aim of stabilizing prices, China Business News reported today, citing an unidentified person. Sinograin stopped grain purchases when market prices are higher than the minimum purchasing price, the report said, citing the company. Palm Oil Supported by Stronger Crude Oil, Weak Dollar: Glenealy Palm oil prices will be supported by stronger crude oil and a weaker dollar, Glenealy Plantations (Malaya) Bhd. Managing Director Yaw Chee Ming said in a statement in Kuala Lumpur today. Palm Oil Futures Climb as Much as 0.5% to 3,106 Ringgit a Ton Palm oil futures in Malaysia climbed as much as 0.5 percent to 3,106 ringgit a metric ton. January-delivery futures traded at 3,104 ringgit a ton on the Malaysia Derivatives Exchange at 10:34 a.m in Kuala Lumpur. SOFT COMMODITIES: Cotton Jumps to Records in New York, Zhengzhou on China Supply Cotton futures in New York and Zhengzhou advanced to records on lingering concerns that a production deficit in China, the world’s biggest buyer, may be wider than estimated, boosting the nation’s import needs. Record Cotton Prices ‘Endanger’ China Textile Makers, CFLP Says Textile makers in China, which uses more than 40 percent of the world’s cotton, face a supply shortage that has sent prices to a record and is “endangering” their survival, an industry group said. India May Resume Sugar Exports Next Month, Economic Times Says India may resume sugar exports next month and the government is likely to expedite applications from mills for shipment of about 500,000 metric tons, the Economic Times reported, citing an official it didn’t identify. Indonesia’s Sulawesi Oct. Cocoa Bean Exports Jump 80% on Month Cocoa bean exports from Sulawesi, Indonesia’s main growing region, rose 80 percent from a month earlier to 33,898 tons in October, the nation’s cocoa association said in a faxed statement in Jakarta today. Bahia Cocoa Arrivals in Brazil Climb 39%, Analyst Hartmann Says Cocoa arrivals from Bahia, Brazil’s biggest growing region, advanced 39 percent in the latest week, according to analyst Thomas Hartmann. ECONOMIES: World Bank Says China Needs to Raise Interest Rates Further The World Bank said China should raise interest rates and allow a stronger yuan to damp inflation, along with guarding against a surfeit of capital inflows. Subbarao Says India May Not Raise Rates Until 2011 India’s central bank said it probably won’t raise interest rates in the next three months after tightening monetary policy the most in Asia this year. Bernanke Bond Buying May Risk Rise in Prices Similar to 2004 The Federal Reserve may be underestimating the inflation outlook for the second time in less than a decade as it prepares to pump more money into the U.S. economy. Goldman Sachs Says Hong Kong to Benefit Most From QE2 Goldman Sachs Group Inc. raised its 12-month target for Hong Kong’s Hang Seng Index to 29,000, saying the city has the most to gain from extra liquidity released by quantitative easing programs and China’s growth. OTHER MARKETS: Oil Trades at a Six-Month High on Inventory Drop, Fed Stimulus Oil rose to a six-month high after an industry report showed U.S. crude inventories declined and on expectations the dollar will drop following Federal Reserve economic stimulus measures. China’s Record Oil Surplus Points to Stockpiling: Chart of Day China’s surplus crude oil reached a record in September stoking speculation that the world’s biggest energy user may be stockpiling commercial or strategic reserves. Yen Retreats From Near 15-Year High on Global Recovery Signs The yen retreated from near a 15-year high against the dollar as signs the worldwide economic recovery is gathering momentum boosted regional shares, sapping demand for the Japanese currency as a refuge. Aussie Dollar Near Parity on Outlook for Federal Reserve Easing The Australian dollar traded just short of parity with the U.S. currency, near its highest since exchange controls ended in 1983, on prospects further monetary easing by the Federal Reserve will debase the greenback.

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