BLBG: U.S. Commodities Day Ahead: China Rare-Earth Exports Plunge 77%
The following are the top stories on metals, agriculture and shipping.
ECONOMIC EVENTS:
Forecast Prior Time
(N.Y.)
GDP QoQ 3QS 2.4% 2.0% 8:30
Personal Consumption 3Q S 2.5% 2.6% 8:30
Existing Home Sales OCT 4.48M 4.53M 10:00
Richmond Fed Mfg. Index NOV 6 5 10:00
Fed Minutes Released from Nov. 2-3 FOMC Meeting
OTHER MARKETS:
Last % Chg % YTD
U.S. Dollar Index 78.939 +0.3 +5.1
Crude Oil $81.25 -0.6 +4.8
Gold $1,362.0 -0.3 +17
MSCI World Index 1,226.23 -0.4 +5.2
TOP STORY:
China’s Rare-Earth Exports Plunge 77% After Quota Cut (Update2)
Rare-earth exports from China, the world’s biggest supplier, declined 77 percent in October from a month earlier after the government reduced shipment quotas for the second half.
COMMODITY EXCLUSIVES:
Cotton Exports From India May Fall Short of Quota, Olam Says
Cotton shipments from India, the biggest grower after China, may not fill the quota set by the government as some exporters fail to secure supplies amid lower arrivals and record prices, according to Olam International Ltd.
BP to Shut Down Indonesian LNG Plant, Regulator Says (Update1)
BP Plc, Europe’s second-largest oil company, will perform maintenance at its liquefied natural gas plant in Tangguh, Indonesia, from December to March, the country’s regulator said today.
Statoil May Sell U.S. Gulf Assets After Canada Oil Sands Stake
Statoil ASA, Norway’s biggest energy company, said it may divest holdings in the Gulf of Mexico after selling a stake in its oil sands project in Canada for $2.28 billion to PTT Exploration & Production Pcl.
GVK Group Will Bid to Build Mumbai’s Second Airport (Update2)
GVK Power & Infrastructure Ltd. said its venture running Mumbai’s airport will bid to manage a planned second airfield in India’s financial capital as economic growth spurs travel demand.
Codelco Said to Raise Copper Fee 35% for Chinese Users (Update1)
Codelco, the world’s biggest copper producer, agreed with two Chinese buyers to raise the surcharge on sales by 35 percent next year, according to two industry officials involved in the negotiations.
N.Z. Crisis Minister Grapples With Trapped Miners, Earthquakes
Gerry Brownlee, the New Zealand minister charged with cleaning up the country’s worst earthquake in 80 years, is now grappling with a mining disaster just three months later.
Countries in southern Europe face “Herculean” economic problems, making merger and acquisition opportunities in those nations problematic, said Centrica Plc Chairman Roger Carr.
INDUSTRIAL METALS:
Copper Drops as Demand May Slow Down on China Inflation Curbs
Copper fell for a third day in London on concern demand may weaken as China, the world’s biggest consumer of the metal, moves to cool inflation.
Codelco Said to Raise Copper Premium 35% for Chinese Consumers
Codelco, the world’s biggest copper producer, agreed with two Chinese buyers to raise the surcharge on sales by 35 percent next year, according to two industry officials involved in the negotiations.
Inco Indonesia Drops Most in Five Months as Nickel Futures Fall
PT International Nickel Indonesia declined the most in more than five months in Jakarta trading as nickel futures in London fell for a second day, reducing the revenue outlook for the Indonesian producer of the metal.
MINING:
Norilsk Wants Laws Changed to Limit Hostile Takeovers (Update1)
OAO GMK Norilsk Nickel, Russia’s largest mining company, wants legislation introduced to curb hostile takeovers of companies in the country, according to President Andrey Klishas.
Russia Needs Legislation to Curb Hostile Takeovers, Norilsk Says
OAO GMK Norilsk Nickel, Russia’s largest mining company, wants legislation introduced to curb hostile takeovers of companies in the country, according to President Andrey Klishas.
Coking Coal Prices May Rise 5.3%, Gujarat NRE Says (Update1)
Coking coal prices may rise 5.3 percent next quarter because of demand in Asia, said Gujarat NRE Coke Ltd., an Indian producer of the fuel.
N.Z. Mine Rescuers Release Video of 50-Second Blast (Update2)
The blast that ripped through New Zealand’s Pike River Coal Co. mine last week lasted more than 50 seconds, officials said as they warned that chances of finding the 29 men missing underground are fading.
South African Miners Seek to Reduce Liability for Lung Patients
A South African court will today consider whether mining companies should cover a 610-million rand ($87 million) shortfall in a fund which compensates miners suffering from lung diseases due to their work.
PRECIOUS METALS:
Gold Fluctuates in London on Korean Shelling, Dollar’s Advance
Gold fluctuated in London as North and South Korea exchanged artillery fire and as other commodities declined after the dollar strengthened.
Vietnam’s Net Gold Imports Total 71 Tons Since 1998, Giau Says
Net gold imports by Vietnam, whose citizens may lead the world in holdings of the precious metal, totaled 71 metric tons between 1998 and September 2010, according to the head of the central bank.
China Gold International Raises HK$2.4 Billion in IPO (Update1)
China Gold International Resources Corp., controlled by the nation’s biggest gold company, raised HK$2.4 billion ($309 million) selling shares in a Hong Kong initial public offering, according to two people familiar with the transaction.
AGRICULTURE:
Soybeans Advance as Dry Weather Threatens South American Crop
Soybeans rose for a second day in Chicago as dry weather threatened South American crops, stoking concern Brazil may face a repeat of a 2005 drought that reduced its grain and oilseed harvests.
Cocoa Fluctuates Before Ivory Coast Election; Coffee Declines
Cocoa fluctuated in London and New York amid concerns that supplies from Ivory Coast, the world’s largest producer, may be disrupted during the presidential runoff vote set for Nov. 28.
Palm, Soybean Oils Decline on Concern China May Reduce Imports
Palm oil fell for a second day to the lowest level in three weeks on concern that China may reduce imports as the world’s biggest cooking oils user takes steps to cool food prices.
China May Impose 110% Export Duty on Urea, Phosphate, Site Says
China may restrict fertilizer exports by levying peak- season duties of 110 percent on urea and diammonium phosphate shipments starting Dec. 1, the industry website Jcce.cn said, citing the China Nitrogen Fertilizer Industry Association.
Russia to Boost Spring Grain Plantings by 25%, Interfax Reports
Russia will boost spring grain plantings by 25 percent next year after cutting winter sowing, Interfax reported, citing First Deputy Prime Minister Viktor Zubkov.
Canadian Wheat Board Grain Export Target at 16.6 Million Tons
Following are comments and export targets from Ward Weisensel, chief operating officer of the Canadian Wheat Board. The remarks were posted on the Winnipeg, Manitoba-based board’s website.
SHIPPING:
Persian Gulf Supertanker Surplus Grows for a Third Straight Week
A surplus of supertankers competing for 2 million-barrel cargoes of Middle East crude oil expanded for a third straight week, potentially slowing a rally in freight costs.
ECONOMIES:
China’s Biggest Banks Said to Near Loan Quotas, Halt Growth
China’s biggest banks are close to reaching annual lending quotas and plan to stop expanding their loan books to avoid exceeding the limits, according to four people with knowledge of the matter.
China Inflation May Prove Too Hot for Price Controls (Update1)
Standing near his 12-table noodle shop on Beijing’s Yonghegong Avenue, owner Liu Heliang says meat and vegetable prices have climbed 10 percent in a year and staff wages are up 40 percent.
China’s Stocks Decline to Six-Week Low on Inflation Concern
China’s stocks fell, with the benchmark index dropping to a six-week low, on concern the government will intensify steps to tame inflation.
China Money Rate Climbs to Seven-Week High on PBOC Speculation
China’s benchmark money-market rate rose to the highest level in almost seven weeks on speculation policy makers will lift borrowing costs again after raising lenders’ reserve requirements last week to tame inflation.
Corporate Bond Yield Gap Widens Most Since Lehman: China Credit
The premium investors demand to hold China’s corporate bonds rather than sovereign debt widened the most in two years last week on concern that central bank curbs on lending will cause trading in the securities to slow.
Irish Rescue Plan Shifts Focus to Portugal, Spain: Euro Credit
Ireland’s plan to seek a European rescue risks escalating, rather than alleviating, the sovereign debt crisis as investors turn their focus to the high budget- deficit nations of southern Europe, led by Portugal.
OTHER MARKETS:
Stocks, Futures Drop on Korean Clash, Europe Debt; Dollar Gains
Stocks and U.S. futures fell while the dollar and the Swiss franc strengthened after North Korea shelled a South Korean island and concern grew that Europe’s debt crisis will spread. Metals declined as China’s banks approached lending limits.
Dollar, Swiss Franc Rise as Korea Shelling Spurs Safety Demand
The dollar and the Swiss franc strengthened after North and South Korea exchanged artillery fire, boosting demand for the currencies as a refuge.
Dollar Bears Pare Bets as QE2 Attacks Prove Unfounded (Update3)
At a time when foreign officials and U.S. lawmakers are criticizing the Federal Reserve’s plan to buy Treasury bonds, the currency market is voting in favor of Ben S. Bernanke’s quantitative easing.
European Stocks, U.S. Futures Drop on Debt Concern, Korea Clash
European stocks fell, extending a global selloff, as concern escalated that the region’s debt crisis will spread and North Korea fired artillery shells into South Korea. U.S. futures and Asian equities also retreated.
U.S. Stock-Index Futures Fall After North Korea Fires on South
U.S. stock-index futures dropped, indicating the Standard & Poor’s 500 Index may fall for a second day, after Yonhap News reported North Korea fired artillery shells into South Korea, injuring four soldiers.
Oil Supply Drops in Survey as Demand Climbs: Energy Markets
U.S. crude-oil supplies probably dropped to their lowest level in three months as refinery demand increased with the end of seasonal maintenance, a Bloomberg News survey showed.
North Korea Attack on South Kills Two, Setting Homes Ablaze
North Korea lobbed shells at a South Korean island near their border, killing two soldiers and setting houses ablaze in the worst attack on its neighbor in at least eight months.
SPORTS:
Juventus May Bid for Manchester United’s Berbatov: Roundup
The following is a roundup of soccer stories from U.K. newspapers, with clickable links to the Web.
India Beats New Zealand in 3rd Cricket Test to Take Series 1-0
Top-ranked India beat New Zealand by an innings and 198 runs in the series-deciding third cricket Test at Nagpur.
To contact the reporter on this story: Stuart Wallace in London at swallace6@bloomberg.net
