BLBG: U.S. Commodities Day Ahead: Raw Materials Rise to Two-Year High
The following are the top stories on metals, agriculture and shipping.
ECONOMIC EVENTS:
Forecast Prior Time
(N.Y.)
Change in Nonfarm Payrolls FEB 196K 36K 8:30
Change in Private Payrolls FEB 200K 50K 8:30
Change in Manufact. Payrolls FEB 25K 49K 8:30
Unemployment Rate FEB 9.1% 9.0% 8:30
Avg Hourly Earning MOM All Emp FEB 0.2% 0.4% 8:30
Factory Orders JAN 2.0% 0.2% 10:00
OTHER MARKETS:
Last % Chg % YTD
U.S. Dollar Index 76.466 0.0 -3.2
Crude Oil $102.52 +0.6 +12
Gold $1,417.2 +0.1 -0.3
MSCI World Index 1,355.85 +0.3 +5.9
TOP STORY:
Commodities Rise to Two-Year High as Cotton Jumps to a Record
Commodities jumped to the highest in more than two years, led by gains in agriculture as cotton increased to a record amid dwindling stockpiles and cocoa advanced to a 32-year high on political unrest in Ivory Coast.
COMMODITY EXCLUSIVES:
Putin’s Arctic Energy Selloff Spurs Novatek Gain: Russia Credit
Prime Minister Vladimir Putin’s drive to bring in foreign companies to develop the Arctic is stoking record gains for dollar bonds of OAO Novatek, the natural-gas producer that’s linking up with Total SA.
Nigeria’s Sanusi Says Oil Making His Job ‘Difficult’ (1)
Nigeria’s central bank Governor Lamido Sanusi said rising oil prices are making his job “more difficult” as the government pays more for subsidies on fuel imports, adding to inflation pressure.
Brent Crude Targets $119 on Moving Averages: Technical Analysis
Brent crude may advance past $119 a barrel as prices continually surge above ranges and moving averages, according to technical analysis by Glen Ward, head of retail derivatives at London Capital Group Holdings Plc.
INDUSTRIAL METALS:
Copper Heads for First Weekly Gain in Four Before Payroll Report
Copper rose in London, heading for the first weekly gain in four weeks, before a report that may show payroll gains accelerated in February in the U.S., the world’s second-biggest consumer of the metal.
China’s Appliance Makers Cut Per-Unit Copper Usage, Group Says
High copper prices are prompting home-appliance makers in China, the world’s largest copper user, to reduce the amount of the metal they use relative to output, according to an industry association.
Tight Copper-Ore Supply to Curb Smelters’ Output, CRU’s Qu Says
A tight global copper-concentrate market may force some smelters to cut output as capacity grows, according to Qu Yi, an analyst at researcher CRU International Ltd. Qu spoke today at a metals conference in Ningbo, China. The country is the largest copper user.
MINING:
Fortescue Cuts March Quarter Iron Ore Forecast Due to Weather
Fortescue Metals Group Ltd. cut its forecast iron ore output for the three months to March 31 to a range of 8.5 million tons to 9 million tons, down 0.5 million tons on previous guidance, it said in a statement to the Australian stock exchange today. Heavy rainfall in Australia’s Pilbara district had cut output, with road closures and air access restrictions disrupting production, it said.
Mongolia is concerned about the destabilizing effect of “hot money” inflows on the economy as it begins to develop large coal and copper mines, said Bold Javkhlan, the first deputy governor of the central bank.
Rusal Rejects Norilsk Offer to Buy $12.8 Billion of Shares (2)
United Co. Rusal rejected OAO GMK Norilsk Nickel’s offer to buy a $12.8 billion stake it holds in the Russian nickel mining company, saying it wouldn’t be in the best interests of its shareholders.
Rio Tinto Says Eddington, Fortier to Retire From Board in 2011
Rio Tinto Group said Rod Eddington and Yves Fortier will retire from the board after the annual meeting on May 5, according to a regulatory filing. Andrew Gould will leave the board after the 2012 meeting, the statement said.
Ferrous Resources Said to Seek Funding for $4 Billion Expansion
Ferrous Resources Ltd., an iron ore producer in Brazil, is in talks with potential strategic investors and lenders to help fund a $4 billion expansion, according to two people with knowledge of the matter.
PRECIOUS METALS:
Gold May Rise, Extending Weekly Gain on Libya, Inflation Concern
Gold may gain in London, extending the longest weekly run since October, as turmoil in Libya and concern inflation will accelerate boost demand for an alternative investment.
AGRICULTURE:
Cocoa Advances to 32-Year High on Ivory Coast Supply Concern
Cocoa rose to the highest price since 1979 in New York on speculation escalating violence will limit supplies from Ivory Coast, the world’s largest producer.
Palm Oil Gains a Fourth Day as Crude Rise Lifts Biofuel Appeal
Palm oil advanced for a fourth day, and had a first weekly gain in three, as rising crude oil prices increased the appeal of vegetable oils used in biofuels.
Wheat Advances as Dry Weather Persists in U.S. Growing Areas
Wheat rose in Chicago, set for the first weekly advance in three, as lingering dry weather in parts of the U.S. sparked concern about possible crop damage in the world’s largest exporter of the grain.
Consumers Should Get Used to Higher Food Prices, IMF Says (2)
Consumers should get used to paying more for food, after prices rose to a record, because farmers will take years to expand production enough to meet demand and drive down costs, the International Monetary Fund said.
Coffee Climbs on Speculation Supplies to Run Short; Cocoa Gains
Coffee rose for a second day in London, heading for a fifth straight weekly advance, on speculation global supplies will fall short of demand. Cocoa gained to a 32-year high in New York.
Cotton at Record, Heads for the Biggest Weekly Gain in 3 Months
Cotton futures advanced by the daily maximum, heading for the biggest weekly gain in three months, on signs global supplies will remain subdued amid increased demand from China, the world’s biggest consumer.
SHIPPING:
Strike at Suez Canal Container Terminal Ends, Inchcape Says
A strike at the Suez Canal Container Terminal at east port has ended and the terminal is operating normally, Inchcape Shipping Services said in a report on its website today.
DnB May Look at ‘Bits and Pieces’ of Distressed Shipping Loans
DnB NOR ASA, Norway’s largest lender, said it is only interested in buying “bits and pieces” of portfolios of distressed shipping loans because it would rather use capital to fund projects for its biggest clients.
ECONOMIES:
Wen Sees Billionaires in Congress as Gap in Wealth Widens (1)
As Chinese Premier Wen Jiabao this week opens the annual gathering of the National People’s Congress with a pledge to shrink China’s wealth gap, his challenge will be reflected in the makeup of the assembly itself.
China’s Defense Budget to Rise 12.7% From 2010 TO 601 Bln Yuan
China aims to boost defense spending 12.7 percent to 601 billion yuan ($91 billion) this year, Chinese legislature spokesman Li Zhaoxing said today at a press conference in Beijing for the National People’s Congress, which starts tomorrow.
China’s Feb. New Loans Decline to Less Than 600 Billion Yuan (1)
China’s banks extended less than 600 billion yuan ($91 billion) of local-currency new loans last month, compared with 1.04 trillion yuan in January, the China Securities Journal reported today, citing an unidentified person.
Trichet Rate Sign Pressures Leaders to End Crisis: Euro Credit
European Central Bank President Jean-Claude Trichet’s signal that higher interest rates are on the way suggests he’s run out of patience with political leaders.
Fed Policy Makers Signal Abrupt End to Bond Purchases in June
Federal Reserve policy makers are signaling they favor an abrupt end to $600 billion in Treasury purchases in June, jettisoning their prior strategy of gradually pulling back on intervention in bond markets.
U.K. House Prices Declined Last Month, Erasing January Gain (1)
U.K. house prices fell in February, erasing a gain the previous month, according to Halifax, which said the economic outlook may damp property demand this year.
Payrolls Probably Rebounded as U.S. Economy, Weather Improved
Payroll gains in the U.S. probably accelerated in February, spurred on by an improving economy and more seasonable temperatures, economists said ahead of a government report today.
OTHER MARKETS:
Stocks, Commodities Rise on Economic Growth; Dollar Fluctuates
Stocks rose for a second day and the benchmark index of commodities climbed to a two-year high on evidence of economic growth. U.S. index futures and the dollar fluctuated before America’s payrolls report.
Dollar Weakens to Four-Month Low Versus Euro Before Jobs Data
The dollar fell to its weakest level in four months against the euro as stock markets rose before a report that may show U.S. employers added the most jobs since May, curbing demand for the currency as a haven.
Euro May Extend Advance to 13-Month High: Technical Analysis
The euro may climb to the strongest level in 13 months against the dollar if it closes above so-called resistance at $1.40, according to BNP Paribas SA, citing trading patterns.
European Stocks, U.S. Futures Advance; Hermes, SBM Offshore Rise
European stocks gained before a report that may show U.S. payrolls increased last month, adding to signs that the economy is improving. Asian stocks and U.S. index futures rose.
Asian Stocks Advance for Fourth Day This Week on U.S. Jobs, Oil
Asian stocks rose for the fourth day this week after fewer Americans filed unemployment claims, boosting confidence in the world’s largest economy and easing concern about oil prices and Middle East unrest.
LIbya Battle Lines Harden as Obama Says U.S. Will Aid Civilians
Libya’s rebels prepared to fight off fresh attacks from forces loyal to Muammar Qaddafi as President Barack Obama said the U.S. military is ready to protect civilians caught up in the conflict.
Crude Oil Advances as Violence in Libya Threatens to Escalate
Oil advanced, headed for its sixth weekly gain in London, as civil unrest in Libya fueled concern that supply disruptions will be prolonged while economic data from the U.S. showed signs of growing demand.
EU Considering Widening Sanctions Against Libya, Official Says
The European Union is considering widening sanctions against Libya to include more individuals as well as possibly extending them to organizations, an EU official said.
SPORTS:
Chelsea’s Ancelotti Has Roma Talks, Mail Says: Soccer 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
