ECONOMIC EVENTS, AGRICULTURE REPORTS: Forecast Prior Time (N.Y.) Crop Condition-Corn JUN 19 69% 16:00 Crop Condition-Cotton JUN 19 28% 16:00 Crop Condition-Soybeans JUN 19 67% 16:00 Crop Condition-Winter Wheat JUN 19 35% 16:00 Crop Progress-Soy Planting JUN 19 87% 16:00 METAL PRICES: ($/ton) Last % Chg RSI Copper 9,000 -1.0 47 Aluminum 2,537 -0.3 41 Zinc 2,171 -0.8 40 Lead 2,421 -1.2 43 Nickel 21,470 -0.7 32 Tin 24,625 -1.5 31 OTHER MARKETS: Last % Chg % YTD U.S. Dollar Index 75.303 +0.4 -4.7 Crude Oil $91.79 -1.3 +0.4 Gold $1,537.5 -0.1 +8.2 MSCI World Index 1,274.06 -0.5 -0.5 TOP STORY: Commodities Drop to Six-Week Low on Europe Sovereign-Debt Woes Commodities declined to the lowest level in six weeks led by losses in crude oil and copper after European governments failed to agree on a loan payment to spare Greece from default, increasing concern over economic growth. COMMODITY EXCLUSIVES: Fukushima Failures Kept Behind Closed Doors at IAEA Meeting (2) The United Nations nuclear agency’s decision to hold talks about the Fukushima disaster behind closed doors this week ignores the “blindingly obvious” need for greater transparency, said a former official in the U.K. atomic industry. Shorts Sell ‘Solarcoaster’ as China Glut Sinks Panel Prices (2) Short sellers are flocking to solar power, dumping record levels of stock in First Solar Inc. of the U.S. and competing equipment makers in a bet that profit will be hurt by a glut of Chinese panels and shrinking demand in Europe. Ruble Loses Lead Among BRICs as Oil Dents Allure: Russia Credit Russia, where the currency has posted the biggest gain among the largest developing countries in the first quarter, is losing its lead as a drop in oil prices and the European debt crisis deter investors. Saudi Aramco Said to Find Asian Buyers for Extra Oil Supplies Saudi Arabian Oil Co., the world’s largest crude exporter, found buyers in India, China and Japan for extra supplies it’s offering in an effort to meet global demand, three people with knowledge of the sales said. Corn Stocks Plunge as China Adds Brazil-Sized Crop to Usage (1) Even a fifth consecutive year of record global corn harvests will fail to meet demand for food, fuel and livestock feed, reducing world stockpiles to the lowest in two generations. INDUSTRIAL METALS: Copper Falls as Failure to Agree on Greek Aid Bolsters Dollar Copper fell in London, declining with other commodities as the dollar advanced after euro-area governments faltered in their race to save Greece from a debt default. Lead Orders to Remove Metal From Warehouses Advance Eightfold Orders to remove lead from warehouses monitored by the London Metal Exchange climbed more than eightfold. MINING: Woodside’s Drop May Renew BHP Interest, Credit Suisse Says (1) Woodside Petroleum Ltd. may become a more attractive target for BHP Billiton Ltd. if its shares remain “depressed” in Sydney after announcing a cost increase and delay at its Pluto gas venture, Credit Suisse Group AG said. Teck Sees Lower Coal Sales as Japan Mills Defer Shipments (1) Teck Resources Ltd., the world’s second largest exporter of steelmaking coal, said second-quarter sales will be at the low end of guidance after customers in Japan deferred shipments due to the earthquake and tsunami. Eramet, Australia’s Mineral Deposits Form $1 Billion Venture Eramet SA, operator of the world’s largest ferronickel smelter, agreed to form a $1 billion mineral sands joint venture with Australian producer Mineral Deposits Ltd. to tap rising global demand driven by China. PRECIOUS METALS: Gold May Advance in London as Greek Debt Crisis Spurs Demand Gold may gain for a second day in London as concern about Greece’s debt crisis spurs demand for the metal as an alternative investment. HSBC Asset Management Cuts Gold Holding In Favor of Gold Shares HSBC Global Asset Management (U.K.) Ltd. reduced its position in gold and put the money into gold mining shares. AGRICULTURE: Corn, Wheat Fall as Weather Boosts Spring Crops, Dollar Advances Corn and wheat fell on speculation rainfall in parts of Europe will help later-planted crops and demand for U.S. supplies will decline on a stronger dollar. Cocoa Falls as Ivory Coast Bean Deliveries Soar; Coffee Retreats Cocoa fell in London, extending last week’s drop, on signs beans are flowing normally from Ivory Coast, the world’s largest producer. Coffee slid. Palm Oil Advances as Exports Climb on Chinese Seasonal Buying Palm oil gained for a second day as exports from Malaysia, the second-biggest producer, climbed on increased demand from China and as buyers replenished stockpiles ahead of the Muslim fasting month of Ramadan. Rubber Decreases to Four-Week Low as Oil’s Drop Reduces Appeal Rubber slipped to a four-week low as crude oil slumped amid concerns that a slowing U.S. economy and Greece’s debt crisis will lead to lower demand, cutting the appeal of the commodity as an alternative to synthetic products. Thai Rice-Buying Plan Threatens Shipment Target, Exporters Say Rice shipments from Thailand, the largest exporter, may miss a target by more than 50 percent if the biggest opposition party wins the July 3 election and implements a campaign-pledge to buy grain directly from growers, an industry group said. More Heavy Rains Predicted for China After Floods Kill Dozens More rains are predicted for parts of China in the next several days after flooding killed dozens and forced thousands to flee their homes. Corn Stocks Plunge as China Adds Brazil-Sized Crop to Usage (1) Even a fifth consecutive year of record global corn harvests will fail to meet demand for food, fuel and livestock feed, reducing world stockpiles to the lowest in two generations. SHIPPING: Croatia’s Luka Ploce Port Raises Funds by Issuing New Shares Croatian port operator Luka Ploce d.d. offered 200,353 new shares in an effort to raise 80 million kuna ($15 million) to boost the capacity of the port and its terminals. Pirate, Navy Clashes Cause Almost Half Crew Deaths, Compass Says Ships’ crews snatched by pirates off Somalia are almost as likely to be killed in fighting between hijackers and naval forces seeking to prevent hostage-taking as they are to die in captivity, Compass Risk Management Ltd. said. Azeri Light Exports From Supsa Will Decline to One Cargo in July Exports of Azeri Light crude from Georgia’s Black Sea port will drop to one cargo in July from five this month, according to a loading schedule obtained by Bloomberg News. China Coal at 32-Month High to Spur Import Cargoes, Arctic Says Rising power-station coal prices in China may bolster imports of the fuel from Australia, causing shipping costs to strengthen, Arctic Securities ASA said. Ship Construction Exceeds Its Forecast, Clarkson Research Says The number of container ships and iron ore carriers joining the fleet this year is expanding faster than Clarkson Research Services Ltd., a unit of the world’s largest shipbroker, previously estimated. ECONOMIES: Yuan Options Most Bearish Since ’09 on Slump: China Credit Options traders are the most bearish on China’s yuan in almost two years, reflecting speculation higher interest rates and Europe’s debt crisis will slam the brakes on economic growth. Ma Picks Wu for Running Mate as Taiwan Opponents Add Support (1) Taiwan President Ma Ying-jeou named Wu Den-yih as running mate for his re-election bid, betting the more-popular incumbent premier will help him stave off growing support for the opposition in next year’s election. China May Raise Rates Within Next 10 Days on Prices, Nomura Says China is likely to raise interest rates within the next 10 days as price pressures encourage the government to end the longest pause since increases began in October, Nomura Holdings Inc. says. China Existing Housing Market Cools in May Amid Measures (1) China’s effort to cool home prices is damping the market for existing homes, with prices in May falling from the previous month in 23 of 70 cities measured. Europe Falters in Bid to Rescue Greece, Pressures Papandreou (1) Europe faltered in its race to save Greece from default as finance chiefs said further aid hinged on embattled Prime Minister George Papandreou delivering budget cuts in the face of domestic opposition. Greek Default Spells ‘Havoc’ for Banks a Year After Bailout (1) A year after European officials bailed out Greece, investors say the region’s banks haven’t raised sufficient capital or cut loans enough to withstand the contagion that may follow a default. Greek Bills Withstand Crisis as Banks Roll Debt: Euro Credit Greece’s remaining channel to tap private investors is resisting the turmoil that has engulfed the nation’s bond market, with auctions of the shortest-term Treasury bills continuing unabated. Professor Bernanke’s Paralysis Warning Meets Fed Facing Same (1) As a Princeton University professor, Ben Bernanke castigated the Bank of Japan in 2000 for a “case of self- induced paralysis” that led to a decade of stagnation. Now, the Federal Reserve chairman may be allowing the U.S. central bank to fall into the same trap after its second round of quantitative easing ends this month. London House Prices Reach Record as Buyers Move to Suburbs (1) London home sellers raised asking prices to a record in June as demand from overseas buyers for luxury properties in the capital’s center began to “spill over” into some suburbs, Rightmove Plc said. OTHER MARKETS: Stocks, Euro Drop on Greek Aid Delay; Oil Approaches Bear Market Stocks fell, with European shares extending seven weeks of losses, while the euro weakened and default risk climbed after officials failed to agree on a Greek loan payout. Oil all but wiped out its gain for the year. Euro Weakens on Delayed Agreement on Greek Loan, Growth Concern The euro fell against the dollar for the first time in three days after European governments failed to agree on releasing a loan payment to spare Greece from default on its debts. Pound Weakens Against Dollar as Equities Slide on Greek Concern The pound weakened against the dollar and gilts rose as falling stock markets sapped demand for riskier assets after European governments failed to agree on releasing a loan payment to Greece. Asian Stocks Drop as Oil Slides; Japanese Utility Shares Rally Asian stocks fell, extending a seventh straight weekly decline, as oil traded at a four-month low after European governments failed to agree a loan payout to spare Greece from default. Japanese nuclear-power generators advanced. European Stocks Decline as EU Fails to Agree on Greece Loan European stocks fell, with the Stoxx Europe 600 Index extending losses into an eighth week, as governments failed to agree on a payment to spare Greece from default. Asian stocks and U.S. futures dropped. Oil Falls in N.Y., Approaching Bear Market as 2011 Gain Erased Oil fell to the lowest in four months in New York, bringing its decline from this year’s peak to 20 percent, on speculation a weakening global economy and Greece’s debt crisis will lead to reduced fuel demand. NATO Acknowledges Possible Civilian Casualties in Tripoli Strike NATO warplanes didn’t all hit intended targets in Tripoli and may have killed civilians, the alliance said in an e-mailed statement after Libyan Foreign Minister Abdul Ati Al-Obeidi said yesterday that a private house in Tripoli had been hit, causing several deaths. U.S. Confirms Afghan Taliban Talks as Karzai Criticizes Motives The U.S. has made “very preliminary” contacts with Afghan Taliban guerrillas, Defense Secretary Robert Gates said, after Afghanistan’s president said he is looking to Pakistan to mediate peace talks. SPORTS: England Names Matt Stevens in Rugby World Cup Training Squad Saracens prop Matt Stevens, who returned to rugby following a two-year drug ban, has been named in England’s 45-man World Cup training squad. Chelsea Agrees to Hire Porto Coach Andre Villas-Boas, Lusa Says Chelsea agreed to pay 15 million euros ($21.4 million) to Porto to sign its coach Andre Villas-Boas, the Lusa news agency reported, citing a person familiar with the negotiation it didn’t identify. Barcelona Beats Manchester Clubs to Sign Sanchez: 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

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