BLBG::U.K. Winter Gas Gains as Crude Hits $120 for First Time in Month
ECONOMIC EVENTS, AGRICULTURE REPORTS:
Forecast Prior Time
(N.Y.)
Import Price Index MoM MAY -0.7% 2.2% 8:30
Import Price Index YoY MAY 11.2% 11.1% 8:30
METAL PRICES: ($/ton)
Last % Chg RSI
Copper 9,000 -0.6 47
Aluminum 2,642 -0.7 52
Zinc 2,284 -0.1 56
Lead 2,587 -0.8 58
Nickel 23,030 -0.7 43
Tin 25,850 +0.6 32
OTHER MARKETS:
Last % Chg % YTD
U.S. Dollar Index 74.386 +0.3 -5.9
Crude Oil $100.86 -1.0 +10
Gold $1,541.2 -0.2 +8.5
MSCI World Index 1,305.69 -0.2 +2.0
TOP STORY:
Crop Weather Mayhem Delays Corn, Rice Planting as Prices Rally
When the overflowing Mississippi River breached Arkansas’s levees and flooded Michael Oxner’s farm in May, the waters didn’t just wipe out his hopes of planting 1,400 acres of rice. It destroyed last year’s crop, too.
COMMODITY EXCLUSIVES:
Vedanta Plans $783 Million Expansion to Tap Aluminum Demand (1)
Vedanta Resources Plc, India’s biggest aluminum producer, plans to spend 35 billion rupees ($783 million) to increase capacity by 50 percent this fiscal year to tap rising prices and demand.
Corn Beats Wheat by Most in Half a Century: Chart of the Day
Corn has surged to its costliest level relative to wheat since at least 1959 as ethanol producers drain supply and wet weather hurts U.S. yields. Wheat may rally as livestock and poultry farmers use the grain as a substitute.
India Inflation May Quicken as Crop Prices Raised to Record (1)
Food-price inflation in India, Asia’s third-largest economy, may accelerate after the government raised the prices it pays farmers for rice and oilseeds to records, making crops costlier, economists said.
Fuel Oil Premium to Double on Middle East Demand: Energy Markets
The cost of fuel oil from India is set to double as rising temperatures and use by shippers drive Middle East prices to the highest level in almost three years.
Research Peeks Nothing New With Sino-Forest Shares Below C$6 (1)
The assertion that a short seller offered to sell market- moving research to other traders before making it public is failing to sway investors after the biggest plunge in the history of Sino-Forest Corp.
Posco Land Acquisition in India Halted on Farmer Protest (1)
India’s Orissa state today stopped acquiring land for Posco’s proposed $12 billion steel plant after villagers protested against the project, potentially the largest foreign investment in the country.
Acea Says Water Vote Endangers Plan to Double Investments (1)
Acea SpA’s plans to double investment in water services in Italy are threatened by a referendum asking Italians to stop the privatization of locally controlled utilities.
INDUSTRIAL METALS:
Copper Falls on Reduced Imports Into China, Biggest Consumer
Copper fell in London, heading for a second weekly drop, on a decline in imports of the metal into China, the world’s largest consumer.
China Copper Imports Drop as Users Run Down Local Stockpiles (2)
Copper imports by China, the largest consumer, declined 3 percent in May from the previous month as end users drew down inventories and higher London prices made imports more expensive.
China’s May Ore Imports Little Changed as Mills Use Stockpiles
China’s purchases of iron ore were little changed in May as steelmakers in the nation, the world’s biggest iron ore buyer, used existing stockpiles.
MINING:
Glencore Credit Ratings Raised to BBB by S&P on IPO Funds (1)
Glencore International Plc, the largest listed commodity trader, had its credit ratings raised by Standard & Poor’s as the company’s $10 billion initial public offering last month helps diversify sources of funding.
Vallar to Buy Bumi Minerals for $2.1 Billion to Add Deposits (2)
Vallar Plc, one of two Nathaniel Rothschild investment vehicles, agreed to pay $2.1 billion for 75 percent of PT Bumi Resources Minerals Tbk to add mines and an 18 percent stake in Indonesia’s second-largest copper project.
Norilsk Seeks Iron, Copper to Cut ‘Dangerous’ Nickel Dependence
OAO GMK Norilsk Nickel, Russia’s largest mining company, plans to add copper, coal and iron ore assets in Indonesia and Latin America as it seeks to overcome a reliance on nickel and triple its market value to $150 billion.
PRECIOUS METALS:
Gold May Gain in London on Europe Debt Concern, Slower Growth
Gold may gain for a second day in London as concern about Europe’s sovereign-debt crisis and slowing economic growth spur demand for the metal as an alternative investment.
Gold May Gain on Growth Outlook, Europe’s Debt, Survey Shows
Gold may gain as concern about slowing economic growth and Europe’s debt crisis boost demand for the metal as an alternative investment, a survey found.
AGRICULTURE:
Sugar Climbs in London on Signs of Limited Supplies; Cocoa Rises
Sugar climbed in London as the premium for refined sugar over raw sweetener rebounded near a 22-year high, signaling limited supplies. Cocoa rose.
Palm Oil Drops as Malaysian Inventories Climb to 16-Month High
Palm oil dropped for a fifth day after Malaysia, the second-biggest producer, said stockpiles climbed to the highest level in 16 months on a surge in output.
Brazil’s Sugar Exports to Russia May Advance 60%, Czarnikow Says
Brazil’s sugar exports to Russia may climb 60 percent in the current quarter before a possible jump in the import duty, C. Czarnikow Sugar Futures Ltd. said.
Soybeans Fall as Stocks Estimate May Signal Weaker Import Demand
Soybeans fell for a second day in Chicago on concern a prediction for higher-than-estimated U.S. stockpiles at the end of the marketing year may signal weaker demand from importers.
China Feed Mills Use Wheat as Corn Prices Rise, Researcher Says
Feed mills in China, the biggest grain user, are using more wheat as a raw material to cope with rising costs of corn, the China National Grain & Oils Information Center said.
Rubber Drops to One-Week Low on Demand Concern, Falling Crude
Rubber declined to a one-week low, posting its first weekly loss in more than a month, on concern that slowing economic growth may erode demand for the commodity used in tires and gloves.
SHIPPING:
Russia’s End of Grains Export Ban Sends ‘Coaster’ Rates Higher
The cost of shipping wheat from southern Russia to Turkey on smaller “coaster” vessels has climbed 50 percent in the past two weeks since the government announced the end of the grain export ban, according to the National Association of Agricultural Products’ Exporters.
ECONOMIES:
Best Yield Premium of ‘11 Adds to Pressure on Yuan: China Credit
China’s bonds are offering the biggest yield premiums in six months over comparable U.S. Treasuries, spurring capital inflows that make it harder for the central bank to limit yuan gains and contain inflation.
China Stock Slump May End on Policy Easing, Manulife Asset Says
China’s stocks may rebound from a slump that dragged the Shanghai Composite Index 12 percent from this year’s high on speculation the government will ease measures to curb inflation, Manulife Asset Management said.
Germany Digs In on Greek Debt Extensions Rejected by Trichet (1)
Germany stepped up demands that investors pay some of the cost of a second Greek rescue after Jean-Claude Trichet rejected direct involvement by the European Central Bank.
Ireland Turns Against France as Default Risk Rises: Euro Credit
As the International Monetary Fund urges Europe to help Ireland out of its crisis, politicians in France and Germany are doing the opposite.
China Reports Less-Than-Estimated $13 Billion Trade Surplus (3)
China reported a less-than-estimated $13.1 billion trade surplus in May, as surging imports signaled the nation’s demand may support global growth while adding pressure for higher interest rates.
Fed Said to Consider Expansion of Capital Reviews to More Banks
The Federal Reserve may expand its annual review of bank capital beyond the 19 largest financial institutions to push rigorous risk-management standards into more banks, according to people familiar with the discussions.
Bundesbank Raises 2011 Growth Forecast for Germany to 3.1% (1)
The Bundesbank raised its forecasts for German growth, saying Europe’s largest economy has entered a broad and prolonged upswing.
OTHER MARKETS:
Stocks Fall as Yen Strengthens; Greek, Portuguese Bonds Decline
Stocks declined, dragging benchmark indexes for Asia and Europe to six straight weekly losses, and the yen gained amid concern the global recovery is slowing. The euro weakened while Greek and Portuguese bonds fell.
Euro Falls, Set for Weekly Drop, on Rate Increase Speculation
The euro declined versus the dollar, headed for the first weekly drop in four, amid prospects the European Central Bank will slow the pace of interest-rate increases this year.
Rupee May Decline Most in Asia on No OPEC Relief: India Credit
OPEC’s decision to refrain from increasing crude supplies may hurt the rupee more than any other Asian currency by slowing the economy and fanning inflation for the world’s fourth-largest oil importer.
European Stocks Decline for Seventh Day in Eight; Sulzer Drops
European stocks declined, with the benchmark Stoxx Europe 600 Index falling for the seventh time in eight days, amid concern about the strength of the economy. Asian shares slid and U.S. index futures were little changed.
Asian Stocks Drop on Concern Central Banks Will Raise Rates
Asian stocks dropped, dragging the regional benchmark index to its longest streak of weekly losses since October 2008, on concern the region’s central banks will keep raising interest rates to tame inflation even amid signs the global economic recovery may be faltering.
Oil Falls on Concern Fuel Demand May Slow as Banks Raise Rates
Crude oil declined in New York, trimming the biggest weekly increase in four, amid speculation fuel demand will falter as Asia’s central banks raised interest rates to curb inflation and the U.S. job market weakens.
Biden, Geithner Said to Push Republicans on Higher-Revenue Issue
Vice President Joe Biden and Treasury Secretary Tim Geithner pressed Republicans to accept higher revenue to help curb deficits in talks aimed at achieving a plan to raise the U.S. debt limit before Aug. 2, two congressional aides said.
Erdogan to Win Third Term as Post-IMF Turkey Sets Mideast Model
Recep Tayyip Erdogan is set to win a third term as Turkey’s prime minister and a mandate to reshape the secular constitution, as the country enjoys an economic boom that stands out amid upheaval to the east and west.
Syrian Forces Fire on Protesters in Homs, Al Jazeera Reports
Syrian forces fired on anti- government protesters today in the city of Homs, Al Jazeera reported, citing a witness.
SPORTS:
Manchester Utd. to Bid for Arsenal’s Nasri, Mirror Says: Roundup
The following is a roundup of soccer stories from U.K. newspapers, with clickable links to the Web.
Mexico Suspends Five Soccer Players, Reaches Gold Cup Final 8
Mexico qualified for the quarterfinals of the Gold Cup hours after suspending five national soccer team players for testing positive for the banned stimulant clenbuterol.
To contact the editor responsible for this story: Stuart Wallace in London at swallace6@bloomberg.net
