BLBG: U.S. Commodities Day Ahead: Thailand Planning Fewer Rice Crops
The following are the top stories on metals, agriculture and shipping.
ECONOMIC EVENTS:
Thailand Planning Fewer Rice Crops in Pest Fight May Cut Supply
Thailand, the world’s largest rice exporter, plans to reduce planting to curb pests and improve quality, an official from the Thai Rice Mills Association said.
COMMODITY EXCLUSIVES:
‘Ocean’ of Money to Drive Gold’s Record Rally, Phoenix Says (1)
Gold may rally to a record as investors from China, Japan and the Middle East buy the metal on expectations of “hyper inflation” created by central banks, according to Phoenix Gold Fund Ltd.
China May Match India as Top Gold User on Investment Demand (1)
Chinese consumption of gold may climb to rival that of India, the top user, as investors buy the metal as a store of value, said GFMS Ltd. and INTL FCStone.
Vietnam’s Coffee-Belt Drought May Ease in May, Forecaster Says
Drought in the main coffee-growing regions in Vietnam, the second-biggest producer after Brazil, may ease in May as more rains are set to arrive after some fell in recent days, according to a government forecaster.
European Nuclear Costs to Rise After Japan’s Fukushima Disaster
European nuclear operators may face higher costs for maintaining and extending the lives of reactors because of the accident at the Fukushima Dai-Ichi plant in Japan, according to industry representatives.
India Plans to Extend Bid Deadline for 4,000-MW Orissa Project
India plans to extend the deadline for submission of bids to build a 4,000-megawatt power plant in Orissa state by an additional two months as environmental approval is awaited to mine the project’s coal blocks.
Soco Advances New Oil Exploration Ventures in Vietnam, Congo
Soco International Plc, a U.K. energy explorer in Africa and Southeast Asia, is pressing ahead with plans to secure new oil-exploration ventures in the Republic of Congo and Vietnam.
INDUSTRIAL METALS:
Copper Advances for a Second Day on Surge in Stockpile Orders
Copper rose for a second day in London as orders to draw metal from inventories jumped the most in 11 months, feeding speculation that demand will outpace supply in 2011.
Lead in Shanghai Priced at Discount to London for First Day (1)
Lead contracts on the Shanghai Futures Exchange will start trading at 18,350 yuan ($2,797) per metric ton tomorrow, the bourse said today.
MINING:
Yara Asks Tecnicas to Build $700 Million Explosives Plant (1)
Yara International ASA, the largest publicly traded nitrogen fertilizer maker, asked Tecnicas Reunidas SA to build a $700 million ammonium nitrate factory to supply the explosives ingredient to mines in Pilbara, Australia.
Patagonia Gold Agrees With Barrick to Amend Acquisition Accord
Patagonia Gold Plc agreed with Barrick Exploraciones Argentina SA and Minera Rodeo SA to amend an acquisition agreement for assets in Santa Cruz, Argentina. The change eliminates the “Back in Right” in exchange for a 2.5 percent net smelter return royalty, Patagonia Gold said.
Ferrexpo Says Its Full-Year Net Income Jumped to $422.9 Million
Ferrexpo Plc, a mining company with operations in Ukraine, said net income for the 12 months through December increased to $422.9 million from $70.6 million a year earlier.
PRECIOUS METALS:
Gold Advances on Libya, Middle East Unrest, Europe Debt Concern
Gold gained near a record in London as unrest in Libya and the Middle East and concern about Europe’s debt crisis spurred demand for an alternative investment.
AGRICULTURE:
Oil, Grains Will Be Top Commodity Gainers in 2011, BarCap Says
Crude oil and grains will be the top commodity performers this year as investors bet on supply disruptions, a Barclays Capital survey showed.
Wheat Gains on Dry Weather in U.S. Plains, Japan Demand Outlook
Wheat rose for a second day in Chicago on concern dry weather in growing regions in the U.S., the world’s biggest exporter, may hurt crops and on signs Japanese demand may be unaffected by the March 11 earthquake.
Cocoa Rises as Ivory Coast Conflict Escalates; Coffee Advances
Cocoa climbed for a third day in London on concerns supplies of the beans may be further disrupted as conflict escalates in Ivory Coast, the world’s largest producer. Coffee advanced.
Wheat Output Will Rise on Increased Planting, Yield, UN Says (1)
World wheat production will rise on increased planting after prices gained last year and as yields improve after adverse weather hurt crops, the United Nations said in a report.
Palm Oil Output in Malaysia to Climb in 2011, Central Bank Says
Palm oil output in Malaysia, the second-largest grower, will increase this year as normal weather returns to growing regions, and higher prices may spur rubber production, according to the nation’s central bank.
Vietnam’s Coffee-Belt Drought May Ease in May, Forecaster Says
Drought in the main coffee-growing regions in Vietnam, the second-biggest producer after Brazil, may ease in May as more rains are set to arrive after some fell in recent days, according to a government forecaster.
Rubber Little Changed in Tokyo After Rally on Tight Supplies
Rubber futures in Tokyo were little changed after an early rally on tightening supplies during the low-production season in Southeast Asia and falling stockpiles in China, the largest consumer.
SHIPPING:
Tokyo Bay Ports Safe for Shipping, Largest Officers Union Says
Tokyo Bay ports are safe and do not pose a safety threat for captains who sail vessels there after a nuclear power plant in the north of Japan was damaged, Europe’s largest union for shipping officers said.
Yemen LNG Says Operations Are Normal Amid Protests and Unrest
Yemen LNG, the Arab country’s liquefied natural gas exporter, is operating normally amid unrest sweeping the country, a company official said.
Maersk Creates 140-Mile Exclusion Zone Around Fukushima Plant
A.P. Moeller-Maersk A/S, operator of the world’s largest container shipping fleet, created a 140-mile exclusion zone around the damaged Fukushima nuclear plant in Japan, Copenhagen- based spokesman Michael Storgaard said by phone today.
ECONOMIES:
China Can Grow 8% for 20 Years to Top U.S., World Bank Says
China can grow 8 percent annually for the next two decades to become twice the size of the U.S. economy, World Bank Chief Economist Justin Lin said.
Beijing Bans Outdoor Ads That Promote ‘Hedonism, Lavishness’
Beijing’s Communist government, faced with a widening gap between rich and poor, moved to make the issue less visible by banning outdoor advertising in the Chinese capital that promotes lavish lifestyles.
Mizuho Sees Inflation Leaving ‘No Choice’ on Rates: China Credit
China may increase its benchmark interest rates within weeks as unrest in the Middle East drives up oil prices and reconstruction in Japan threatens to boost raw-material costs.
Banks Bring Jobs to London as Finance Pays Most Tax in Britain
Goldman Sachs Group Inc. employs almost as many people in London today as it did in 2007, before Lehman Brothers Holdings Inc. filed for the biggest bankruptcy in history, sparking a global recession.
Japan Forecasts Earthquake Damage May Swell to $309 Billion (1)
Japan’s government estimated the damage from this month’s record earthquake and tsunami at as much as 25 trillion yen ($309 billion), an amount almost four times the hit imposed by Hurricane Katrina on the U.S.
BOE Voted 6-3 to Hold Rate, Saw ‘Merit in Waiting’ on Policy (2)
Bank of England policy makers voted 6-3 to keep interest rates on hold this month and saw “merit in waiting” to assess the impact of rising oil prices on inflation, which they forecast may exceed 5 percent.
Socrates Faces Vote Threatening to Push Portugal to Polls (1)
Portuguese Prime Minister Jose Socrates faces a vote in parliament today against his deficit-cutting plan that threatens to push the country toward early elections and the need for a European Union bailout.
Berlusconi Hedges Bets on Libya Outcome Through NATO Push (1)
Prime Minister Silvio Berlusconi’s push for NATO to take command of the Libyan no-fly zone shows how Muammar Qaddafi’s former friend is trying to hedge his bets over the civil war in Italy’s one-time colony.
OTHER MARKETS:
Portugal, Ireland Bonds Drop on Vote Concern; Swiss Franc Gains
Bonds of Europe’s most-indebted countries fell and the Swiss franc strengthened as Portugal faced a budget vote that may trigger a bailout. Commodities rose for a sixth day, while U.S. index futures fluctuated.
Franc Appreciates on Portugal Vote; Euro Slumps on EFSF Outlook
The franc appreciated against all its major counterparts before a Portuguese vote that may push the nation to an early election and European bailout, boosting demand for the safest assets.
One BRIC Boosts Treasuries While Criticizing QE2: Brazil Credit
Brazil’s criticism of the Federal Reserve’s effort to keep U.S. borrowing costs low by purchasing Treasuries isn’t stopping the country from buying the debt at the fastest pace in 15 months.
European Stocks Climb as Rio Rallies; Inditex, UniCredit Advance
European stocks rose as higher metal prices boosted raw- material shares and companies from Inditex SA to UniCredit SpA reported earnings that topped estimates. U.S. index futures climbed, while Asian shares fell.
Germany Tops Europe on Profits After Worst Loss Since May (1)
Profits at German companies are headed for the highest level on record, keeping stock valuations below the rest of Europe even after the DAX Index surged at twice the region’s rate.
Oil Rises to Two-Week High as Alliance Prepares Libya Attacks
Oil rose to its highest price in two weeks as the alliance enforcing a no-fly zone over Libya prepared to attack Muammar Qaddafi’s ground forces, raising concern that exports from the nation will remain disrupted.
The U.S. and its allies are preparing to direct more attacks against Libyan leader Muammar Qaddafi’s ground forces, as the coalition tries to resolve disputes over who will take over command.
U.S. Stock Futures Are Little Changed Before Home Sales Report
U.S. stock-index futures were little changed as investors awaited a report that may show new home sales increased in February.
SPORTS:
Portugal’s Queiroz Wins Appeal on ‘Sexually Descriptive’ Remark
Former Portugal soccer coach Carlos Queiroz had a six-month ban for making “sexually descriptive” comments about an anti- doping official’s mother overturned, the top sports tribunal said.
Roma’s De Rossi Seeks $29 Million Manchester Utd. Move: Roundup
The following is a roundup of soccer stories from U.K. newspapers, with clickable links to the Web.
Ponting Says He Wants to Play On After Cricket World Cup (1)
Australia captain Ricky Ponting said he wants to play on following a report that he planned to quit international cricket after the World Cup and finish his career by leading an English county team.
To contact the editor responsible for this story: Stuart Wallace in London at swallace6@bloomberg.net
