The following are the top stories on metals, agriculture and shipping. ECONOMIC EVENTS, AGRICULTURE REPORTS: Forecast Prior Time (N.Y.) Current Account Balance 1Q -$130.0B -$113.3B 8:30 Initial Jobless Claims JUN 11 420K 427K 8:30 Continuing Claims JUN 4 3670K 3676K 8:30 Housing Starts MAY 545K 523K 8:30 Housing Starts MoM MAY 4.2% -10.6% 8:30 Building Permits MAY 557K 563K 8:30 Building Permits MoM MAY -1.1% -4.0% 8:30 Bloomberg Eco. Expectations JUN -16 9:45 Bloomberg Consumer Comfort JUN 12 -45.9 9:45 Philadelphia Fed. JUN 7.0 3.9 10:00 Net Export Sales - Cotton JUN 9 -118.6 8:30 Net Export Sales - Corn JUN 9 350.2 8:30 Net Export Sales - Soybeans JUN 9 120.6 8:30 Net Export Sales - Wheat JUN 9 477.7 8:30 METAL PRICES: ($/ton) Last % Chg RSI Copper 9,045 -1.2 49 Aluminum 2,559 -1.2 43 Zinc 2,214 -1.4 45 Lead 2,492 -1.0 49 Nickel 21,900 -0.6 35 Tin 24,800 -1.4 31 OTHER MARKETS: Last % Chg % YTD U.S. Dollar Index 75.804 +0.3 -4.1 Crude Oil $95.29 +0.5 +4.3 Gold $1,526.0 -0.3 +7.4 MSCI World Index 1,270.95 -1.0 -0.7 TOP STORY: Copper Falls on Concern Greece’s Debt Crisis May Erode Demand Copper fell the most in almost a week in London on concern Greece’s debt crisis may slow economic growth, curbing demand for industrial metals. COMMODITY EXCLUSIVES: Slovenia May Delay New Krsko Unit as Nuclear Power Debate Rages The Slovenian government’s plan to build a new reactor at the Krsko atomic plant may be delayed by the debate over the future of nuclear power in Europe after the accident in Japan raised safety concerns. LM Wind to Produce New Blades for China Offshore Wind Market LM Wind Power Group, the world’s biggest independent manufacturer of wind-turbine blades, plans to produce new products with a length of 73.5 meters for offshore turbines in China by the first half of next year. Polish Energy Regulator Says ‘Unlikely’ to Set Gas Prices Today Polskie Gornictwo Naftowe i Gazownictwo SA, Poland’s dominant gas company, may need to wait longer to charge higher prices for the fuel as the market regulator probably won’t approve new tariffs today. Record Oil Premium to Shrink on North Sea Flows: Energy Markets The unprecedented gap between the prices of the world’s two leading oil grades is set to narrow as North Sea wells resume production after summer maintenance. LED Lighting Prices to ‘Plummet’ By 2015, VantagePoint Says (2) VantagePoint Capital Partners, the Silicon Valley investor that helped bring Tesla Motors Inc. public, expects prices for LEDs to “plummet” within three years as competition intensifies to satisfy surging demand for energy-efficient lights. EON ‘Acted Early’ to Buy Back German Power on Nuclear Halts (1) EON AG, Germany’s biggest utility, has bought back lost future electricity production it had already sold from two nuclear plants that were ordered to shut by Chancellor Angela Merkel in March. Food-Safety Fears Grow in Japan on Radiation Test Concern (2) Kimie Nozaki, a mother of three children living 60 kilometers from the crippled Fukushima nuclear reactors, said she doesn’t trust the government’s testing program for radiation-contaminated food. Lead Output Drops in China as Pollution Shuts Battery Firms (1) Lead production in China, the world’s largest, may extend a decline as inventories reach a record and battery makers close plants in response to a government crackdown on pollution. Lower U.S. Cattle Sales Squeezing Beef Supply Means Higher Costs Feedlot operators in the U.S. probably bought fewer young cattle in May, signaling tighter beef supplies at the end of the year and higher prices that may trim meatpacker profit. INDUSTRIAL METALS: Lead Output Drops in China as Pollution Shuts Battery Firms (1) Lead production in China, the world’s largest, may extend a decline as inventories reach a record and battery makers close plants in response to a government crackdown on pollution. MINING: Xstrata Falls to Seven-Month Low in London on Merrill Lynch Note Xstrata Plc, the biggest exporter of thermal coal, fell to a more than seven-month low in London trading after Bank of America Merrill Lynch cut its earnings estimates because of declining coal volumes and prices. Glasenberg Loses $1.1 Billion in Three Days as Glencore Slumps Glencore International Plc Chief Executive Officer Ivan Glasenberg has had $1.1 billion wiped off the value of his stake in the company in three days as the stock slumps on missed earnings estimates and lower commodity prices. First Quantum, Vedanta Boost Zambia’s Economy, Banda Says (1) A copper-mining boom in Zambia, Africa’s biggest producer of the metal, is helping the country diversify its economy and repair and build infrastructure, President Rupiah Banda said. Korea Resources Says Mexico Copper Production to Begin in 2013 Korea Resources Corp., a state-owned minerals explorer, said its Boleo copper project in Mexico will begin production in 2013. Newcrest Mining Likely to Sell Ivory Coast Mine, RBS Says Newcrest Mining Ltd., Australia’s largest gold mining company, is likely to sell its Ivory Coast project after agreeing yesterday to the sale of two mines in Australia, Royal Bank of Scotland Group Plc said. PRECIOUS METALS: Gold Snaps Two-Day Advance as Commodities Plunge, Dollar Surges Gold weakened, snapping a two-day advance, after commodities plunged and the dollar surged by the most in 10 months, eroding the allure of the precious metal as an alternative investment. AGRICULTURE: Global Demand for Sustainable Palm Oil Doubles in Past Year Demand for palm oil from sustainable sources has doubled in the past year as more consumers chose products made in an environmentally and socially responsible way, an industry group said. Cocoa Falls Most in Two Weeks on African Supplies; Sugar Drops Cocoa fell the most in almost two weeks on signs of plentiful supplies from Africa. Sugar dropped. Wheat Falls For Fourth Day as European Rains Ease Output Concern Wheat fell for the fourth straight day as favorable weather eases production concerns and speeds harvesting of U.S. winter crops. Sarkozy Says Agricultural Markets ‘Least Transparent of All’ French President Nicolas Sarkozy said world agricultural markets are “the least transparent of all,” and require global governance. France as head of the Group of Twenty nations wants to introduce a market-information system for agriculture similar to what exists for oil markets, Sarkozy said at a conference in Paris today. Japan Purchases Most Milling Wheat in Seven Weeks in Tender (1) Japan bought 259,303 metric tons of milling wheat from the U.S., Canada and Australia in a regular tender today, the Ministry of Agriculture, Forestry and Fisheries said. SHIPPING: Europe to Ship About 7.2 Million Barrels of Gasoline to U.S. Oil companies will ship about 7.2 million barrels of gasoline from Europe to the U.S. over the next two weeks, according to a Bloomberg News survey of traders and shipbrokers. Russian Shipper Sovcomflot Plans to Invest $5.5 Billion to 2017 OAO Sovcomflot, Russia’s biggest shipper, plans $5.5 billion of investment in the company until 2017, Chief Executive Officer Sergei Frank told reporters in St. Petersburg today. Coal and Grain Reduction Halting Shipping Rally, Barclays Says A reduction in the amount of coal and grain being shipped in the Atlantic Ocean halted the rally in commodity transportation costs, Barclays Capital said. Freight-Rate Rebound Weakening as Volumes Drop, Barclays Says The rebound in freight rates is weakening, Barclays Capital said in a report today. ECONOMIES: China Bill Yield Climbs, Bond Sale Canceled as Rate Rise Seen China’s central bank raised three-month bill yields for the first time in 10 weeks and China Development Bank Corp. canceled a bond sale, as investors prepared for a possible interest-rate increase. China Leading Indicator Shows ‘More Moderate’ Economic Growth A leading indicator for China points to a likely moderation in the growth of the world’s second-biggest economy after export demand weakened, the Conference Board said. Starwood Expects China to Be Largest Growth Market in 3 Years Starwood Hotels & Resorts Worldwide Inc., which opened China’s first international-branded hotel 26 years ago, expects the nation to be its largest growth market in the next three to four years as it adds more properties. Retailers Double State Gains as X5 Chops Yield: Russia Credit Russia’s retailers, bailed out by state banks during the credit crisis, are slashing borrowing costs by more than 10 percentage points and providing almost double the gains for investors compared with government debt. Europe Faces ‘Lehman Moment’ as Greece Unravels: Euro Credit The European Union’s failure to contain the Greek debt crisis is sending fresh shockwaves through currencies, money markets, equities and derivatives. Papandreou Calls Confidence Vote in Bid to Stay, Pass Cuts (2) Greek Prime Minister George Papandreou will reshuffle his Cabinet today and seek a confidence vote, battling to control a shrinking majority and pass austerity measures demanded by international lenders. U.K. Retail Sales Drop More Than Forecast on Fuel, Job Fears (2) U.K. retail sales dropped more than economists forecast in May as higher fuel costs and concern about employment prospects restrained consumer spending. OTHER MARKETS: Stocks Drop, Euro Weakens on Greek Crisis as Swiss Franc Gains Stocks fell worldwide to a three-month low, the euro weakened and European government default risk climbed to a record on concern the region’s debt crisis is worsening. The Swiss franc strengthened. Euro Falls to Three-Week Low on Concern Greek Crisis Worsening The euro weakened to a three-week low against the dollar and slid versus the yen as speculation the Greek debt crisis is deteriorating damped demand for the region’s assets. Pound Weakens and Gilts Climb After British Retail Sales Slump The pound dropped against the dollar and euro after data showed U.K. retail sales slumped more than economists forecast in May, restrained by higher fuel costs and concern over job losses. European Stocks Decline as Papandreou Calls Confidence Vote European stocks fell to a three- month low as Greek Prime Minister George Papandreou said he will reshuffle his cabinet and seek a confidence vote. U.S. futures and Asian shares dropped. Asian Stocks Slump as Europe Crisis Deepens Amid Greek Rioting Asian stocks tumbled, with the region’s key benchmark index on course for its longest string of weekly losses in seven years, as rioting against planned austerity measures threatened Greece’s government and the global economic recovery. Crude Oil Trades Near Four-Month Low Amid European Debt Concern Oil traded near its lowest in almost four months in New York, paring earlier gains, as European equities declined and the euro weakened against the dollar amid concern that the region’s debt crisis is worsening. Ireland Opens New Front as ECB Battles to Avert Meltdown (1) Ireland opened a new front in the drive to restructure debt on the euro area’s periphery, adding to the European Central Bank’s concerns as it tries to head off another wave of financial turmoil. Al-Qaeda Names Al-Zawahiri as Leader After Bin Laden’s Death Al-Qaeda has named as leader Ayman al-Zawahiri, formerly Osama bin Laden’s top lieutenant, after the mastermind of the Sept. 11, 2001 attacks was killed in a U.S. raid in Pakistan last month. SPORTS: Golfer’s Tax Court Case Tests Principle That Image Is Everything The international golfers at this week’s U.S. Open in Bethesda, Maryland, will be watching for two-time champion Retief Goosen on the leaderboard. Their lawyers will be studying Goosen’s U.S. Tax Court decision. Woods-Less American Golf Seeks to End Major Slump at U.S. Open American golf’s effort to avoid a historic losing streak at the U.S. Open is led by a 44-year-old from Wisconsin who cries on the victory stand and spends winters hitting practice balls out of a heated trailer. To contact the editor responsible for this story: Stuart Wallace in London at swallace6@bloomberg.net

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