The following are the top stories on metals, agriculture and shipping. ECONOMIC EVENTS, AGRICULTURE REPORTS: Forecast Prior Time (N.Y.) Consumer Price Index MoM MAY 0.1% 0.4% 8:30 CPI ex Food & Energy MoM MAY 0.2% 0.2% 8:30 Consumer Price Index YoY MAY 3.4% 3.2% 8:30 CPI Ex Food & Energy YoY MAY 1.4% 1.3% 8:30 CPI Core Index SA MAY 223.745 8:30 Consumer Price Index NSA MAY 225.550 224.906 8:30 Empire Manufacturing JUNE 12.00 11.88 8:30 Total Net TIC Flows APR $116.0B 9:00 Net Long-Term TIC Flows APR $35.0B $24.0B 9:00 Industrial Production MAY 0.2% 0.0% 9:15 Capacity Utilization MAY 77.0% 76.9% 9:15 NAHB Housing Market Index JUN 16 16 10:00 USDA Broiler Eggs Set JUN 10 206285 15:00 METAL PRICES: ($/ton) Last % Chg RSI Copper 9,176 +0.1 54 Aluminum 2,618 -0.3 50 Zinc 2,269 -0.5 53 Lead 2,572 -0.3 56 Nickel 22,350 +0.2 38 Tin 25,600 -0.2 35 OTHER MARKETS: Last % Chg % YTD U.S. Dollar Index 75.017 +0.8 -5.1 Crude Oil $98.81 -0.6 +8.1 Gold $1,518.7 -0.3 +6.9 MSCI World Index 1,299.50 -0.5 +1.5 TOP STORY: Gas Production at Record as Shale Puzzle Solved: Energy Markets U.S. natural-gas producers are pumping fuel at a record pace as advances in drilling techniques help offset a decline in rigs, signaling no respite for the world’s worst-performing commodity in the past year. COMMODITY EXCLUSIVES: Citigroup Hires Olive for Metals, Mining Corporate Banking Team Citigroup Inc. hired Marie-Christine Olive for its corporate banking metals and mining team in Europe, Middle East and Africa. Pakistan to Boost Cotton Output to Record, Lowering Imports (1) Pakistan, the fourth-largest cotton grower, aims to boost production by 36 percent to a record next year as all-time high prices spur farmers to increase planting, potentially lowering imports. Chevron Bets on $30 Billion Volcanoes Beneath Rainforest (1) Chevron Corp. drilled 84 wells to a depth of two miles beneath the Indonesian rainforest to tap steam, not oil and gas, that’s trapped in the world’s richest store of volcanic energy. Copper Stockpiles in China Halve, Paving Way for Imports (2) Copper stockpiles in China may have halved over the past two months as users in the metal’s largest market drew down reserves in bonded and exchange-monitored warehouses, paving the way for more imports and higher prices. Rural Electrification May Borrow $500 Million From Singapore DBS Rural Electrification Corp., India’s fourth-largest lender to power projects, said it may borrow $500 million from Singapore’s DBS Bank Ltd. as part of an overseas fundraising plan to expand market share. Tornado-Warning System Imperiled as U.S. Satellite Funds Cut A $1 billion budget gap may soon leave a hole in the U.S. weather-data system used to make week-ahead predictions critical to cargo shippers, aviators and farmers. Libyan Rebels Seek $3.5 Billion in Aid as Oil Production Stops Libya’s rebel government is seeking $3.5 billion to cover its budget for six months as sales of crude stopped after oil fields were destroyed, said Mahmoud Badi, the president of foreign investments and sovereign assets. INDUSTRIAL METALS: Zinc Stocks Rise to 16-Year High, Led by Gains in Malaysia, U.S. Zinc inventories in warehouses monitored by the London Metal Exchange rose to a 16-year high, led by increases in Port Klang, Malaysia and Chicago. Copper May Rise on Unexpected Gain in Production, Lower Stocks Copper may rise for a second day in London as an unexpected gain in European industrial production and lower inventories of the metal in China signal steady demand. Copper Stockpiles in China Halve, Paving Way for Imports (1) Copper stockpiles in China may have halved over the past two months as users in the metal’s largest market drew down reserves in bonded and exchange-monitored warehouses, paving the way for more imports and higher prices. Aluminum ETFs ‘Difficult to Sell’ on Warehouse Costs, BofA Says Physically-backed aluminum exchange-traded funds are “difficult to sell” because of warehouse expenses, Michael Widmer, head metal strategist at Bank of America Merrill Lynch, said today. Copper Rally Sustained by Last Market Peak: Technical Analysis Copper’s 2 1/2-year rally remains intact above $8,400 to $8,600 a metric ton because that was the peak of the last bull market, according to technical analysis by Jim Stellakis, an independent analyst. MINING: European Goldfields Prepares for Greek Approval of Mine Permits European Goldfields Ltd., operating mines in southern Europe, is preparing its projects in Greece in “anticipation of approval” of state mining permits in weeks. Glencore Barred From ENRC Bid for Six Months by Takeover Panel Glencore International Plc, the largest listed commodity trader, has been barred by the U.K. Takeover Panel from bidding for Eurasian Natural Resources Corp. for six months after stating it’s not studying an offer. Catalpa, Conquest Agree to Merge, Buy Two Newcrest Gold Mines Catalpa Resources Ltd. agreed to buy Conquest Mining Ltd. for A$297 million ($318 million) in stock and purchase two gold projects from Newcrest Mining Ltd. in return for a stake in the new Australian producer. Tanzania Lawmakers Approve Plan That Includes Proposed Mine Tax Tanzanian lawmakers approved a five-year development plan that includes a proposal for a so-called super-profit tax for mining companies, an official in the presidency said. PRECIOUS METALS: Gold Falls in London as Stronger Dollar Curbs Investment Demand Gold declined in London as a stronger dollar curbed demand for the precious metal as an alternative investment. China 2011 Gold Output May Grow More Than 10%, Caixin Reports China’s gold output in 2011 may grow more than 10 percent from a year earlier, Caixin reported today, citing Cui Jianguo, deputy director of the China Gold Association. Alacer Gold May Seek Loans to Fund Turkey Mine Expansion Alacer Gold Corp., the second-biggest producer by market value traded in Australia, may extend loans to help pay for a $410 million project in Turkey. Gold to Extend Gains as Investors Seek Haven, Indian Fund Says Gold prices, rallying for an eleventh year, will extend gains as investors add bullion seeking a haven against currency debasement and inflation, according to India’s Quantum Asset Management Co. UOB’s China Unit Approved as Member of Shanghai Gold Exchange United Overseas Bank Ltd.’s China unit has been approved to become a foreign member of the Shanghai Gold Exchange, the bourse said today in a statement on its website. AGRICULTURE: Palm Oil Advances on Widening Discount to Soybean Oil, Exports Palm oil advanced after a recent slump in prices widened the discount to soybean oil to the biggest in almost three years, increasing the appeal of the tropical oil for food uses. Livestock Output Faces ‘Massive’ Cut on Corn Cost, Gartman Says Livestock production will be “massively reduced” in the coming year as farmers shrink their herds in response to rising costs of corn used as feed, according to economist Dennis Gartman. Sugar Gains on Port Delays in Brazil, Thailand; Cocoa Advances Sugar rose in London as ships waited to take on cargoes of sweetener at ports in Brazil and Thailand, the world’s two biggest exporters. Cocoa gained. Cooking Oil Imports by India to Gain as Domestic Supplies Slow Vegetable oil imports by India, the biggest user after China, may accelerate in the next three to four months as domestic supplies slow, a processors’ group said. Cotton Has Limited Downside in the Short Term, Allenberg Says Cotton prices in the short term have “limited downside” as data from the U.S. Department of Agiculture show the market is just as tight as last year, Anthony Tancredi, president of Allenberg Cotton Co., said today. Cotton Shortage in China May Worsen, Increasing Imports (2) Cotton imports by China, the largest consumer, may increase on an expanding supply deficit as the country struggles to boost output, the National Development and Reform Commission said. SHIPPING: Pirates May Target Hormuz Tankers in Monsoons, Risk Adviser Says Somali pirates may focus attacks on oil tankers near the Strait of Hormuz during monsoon season to secure higher ransoms, said an adviser to insurers and shipowners. ECONOMIES: China Property Developers’ Outlook Cut to ‘Negative’ by S&P (2) Chinese developers’ outlook was cut to “negative” from “stable” by Standard & Poor’s, which said tighter credit and further government curbs may lead to rating downgrades in the next year. Roach Sees Years of Growth Scares as Weak Recovery Grinds On (1) The world faces years of “growth scares” as a weak recovery grinds on with little to cushion against periodic shocks, Morgan Stanley’s Stephen Roach said. Sino-Forest Freezes Mainland Junk Sales in U.S.: China Credit Sales of speculative-grade bonds in the U.S. by Chinese companies have ground to a halt as scrutiny of Sino-Forest Corp. and concern that global economy is slowing prompt investors to avoid the nation’s riskiest debt. China Inflation Heading for 6% Shows Danger of Rate Pause (1) China’s inflation pressures have yet to be contained by four interest-rate increases since September, underscoring the danger of any extended policy pause as bad weather threatens to further drive up food costs. Greek Rescue May Be Delayed by Divisions on Investors’ Role (1) Euro-area finance chiefs struggling to break a deadlock on how to enroll investors in a second Greek rescue without triggering a default said they may need more time to reach a deal. Fed Officials Said to Discuss Adopting Explicit Inflation Target Federal Reserve officials are discussing whether to adopt an explicit target for inflation, a strategy long advocated by Chairman Ben S. Bernanke and practiced by central banks from New Zealand to Canada, according to people familiar with the discussions. Goldman Cools on Economy Ignoring ‘China Years’: William Pesek Just when we thought we’d seen everything from Thaksin Shinawatra, the former Thai prime minister has managed to clone himself. OTHER MARKETS: Euro Weakens on Greek Aid Deadlock as Stocks, Commodities Fall The euro weakened and the cost of insuring Greek and Portuguese debt rose to records as European officials failed to agree on a rescue plan for Greece. Stocks, U.S. index futures and commodities fell. Euro Falls Amid Concerns Over EU Deadlock on Greek Rescue Plan The euro fell, snapping a two-day advance against the dollar, as European Union officials struggled to break a deadlock on a second Greek rescue plan. Swiss Franc’s New Surge May Force SNB to Keep Rates on Hold (1) The Swiss franc’s surge to a record may force central bank President Philipp Hildebrand to keep borrowing costs near zero for another quarter. Most European Stocks Drop Amid Greek Aid Deadlock; Banks Retreat Most European stocks retreated amid concern that divisions between the region’s officials may delay a second rescue plan for Greece. U.S. index futures and Asian shares slid. Oil Extends Losses on Concern Europe Crisis May Stall Recovery Oil extended losses, dropping from a three-day high in New York, on that concern Europe’s debt crisis will threaten the region’s economic recovery and curb demand. Greek Unions Strike Against Austerity Measures, Asset Sales (2) Greece’s ports, banks, hospitals and state-run companies ground to a halt today as the two biggest unions went on strike to oppose Prime Minister George Papandreou’s additional budget cuts and asset sales. SPORTS: Manchester United Set to Sign Sanchez for $44 Million: 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

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