ECONOMIC EVENTS, AGRICULTURE REPORTS: Forecast Prior Time (N.Y.) Initial Jobless Claims JUL 16 410K 405K 8:30 Continuing Claims JUL 9 3705K 3727K 8:30 Bloomberg Eco. Expectations JUL -31 9:45 Bloomberg Consumer Comfort JUL 17 -43.9 9:45 House Price Index MoM MAY 0.1% 0.8% 10:00 Leading Indicators JUN 0.2% 0.8% 10:00 Philadelphia Fed. JUL 2.0 -7.7 10:00 Net Export Sales-Cotton JUL 14 -48.2 8:30 Net Export Sales-Corn JUL 14 1680.4 8:30 Net Export Sales-Soybeans JUL 14 656.2 8:30 Net Export Sales-Wheat JUL 14 519.1 8:30 USDA Cattle Slaughter JUL 21 129000 14:00 USDA Hog Slaughter JUL 21 409000 14:00 Metal Prices: ($/ton) Last %Chg RSI Copper 9,729.75 -0.3 64 Aluminum 2,530 -0.2 49 Zinc 2,432.25 -0.9 63 Lead 2,690 -0.2 55 Nickel 23,850 -0.8 58 Tin 28,000 -1.1 65 Other Markets: Last %Chg %YTD U.S. Dollar Index 74.659 -0.3 -5.5 Crude Oil $98.33 -0.1 +7.6 Gold $1,599.50 -0.1 +12.6 MSCI World Index 1,325.52 +0.1 +2.9 TOP STORY: Rice Seen at Three-Year High on Acreage Slump: Chart of the Day Rice, the staple food for half the world, may jump to a three-year high after U.S. farmers slashed the amount of land sown with the grain by the most in more than a quarter century. EXCLUSIVES: Newedge Sees Gold at $1,800 This Year, Silver at $70 by March Gold will surge to $1,800 an ounce by the yearend, and silver will soar to $70 an ounce by March as physical demand climbs in Asia and investors seek a haven, Newedge USA LLC said. Ghana to Raise $1.75 Billion for Cocoa Purchases in 2011/2012 Ghana’s Cocoa Board said it will raise $1.75 billion for cocoa purchases in the 2011/2012 crop season, $250 million more than a year earlier. Severstal Lowest Bond Yield Signals Profit Jump: Russia Credit OAO Severstal, Russia’s second-biggest steelmaker, is borrowing at its lowest ever yield as rising metal prices drive analyst expectations for the best earnings in three years. INDUSTRIAL METALS: Copper Declines on China Manufacturing Data, Lending Controls Copper declined in London as data showed manufacturing in China, the largest consumer, may have fallen for the first time in a year. Zhu Says Rare Earth Prices Not Result of China Manipulation It is a “misunderstanding” to believe that rising prices of rare earths are manipulated by China’s government, Zhu Hongren, a spokesman for the Ministry of Industry and Information Technology, said in Beijing today. Hyundai Steel Expects 10,000 Tons in Monthly Orders From Japan Hyundai Steel Co. said it expects to receive monthly orders for at least 10,000 metric tons of steel plates used for ships from Japanese shipbuilders in the second half of this year. MINING: Posco to Buy Canadian Coal Mine Stake From Fortune Minerals Posco, the world’s third-biggest steelmaker by output, signed a contract to buy a 20 percent stake in the Mount Klappan coal mine in Canada from Fortune Minerals Ltd. to add raw material supply. Sundance Resources Rises on Report of Potential Rival Bid Sundance Resources Ltd., subject of a A$1.2 billion ($1.3 billion) cash takeover offer from its biggest shareholder Sichuan Hanlong Group, rose to the highest in more than six months in Sydney trading after the Australian Financial Review reported a possible rival suitor was studying its accounts. Anglo, Exxaro Coal Miners in South Africa Plan Strike Over Pay Anglo American Plc, Exxaro Resources Ltd. and Optimum Coal Holdings Ltd. face a strike over pay at their coal mines in South Africa, the National Union of Mineworkers said. BHP Billiton FY2011 EPS Estimate Raised 3.9% at Merrill Lynch BHP Billiton Ltd. had its earnings per share estimate raised by 3.9 percent for the year ended June 30 at Bank of America Merrill Lynch after “higher than expected production numbers” in the fourth quarter. Northern Iron Says Power Outage Disrupts Sydvaranger Production Northern Iron Ltd. said production has been disrupted at its Sydvaranger Project due a power outage aggravating a minor existing fault with the primary mill. PRECIOUS METALS: Gold May Drop as Europe, U.S. Leaders Work to Ease Debt Concern Gold, trading within 0.6 percent of an all-time high, may drop after policy makers in Europe and U.S. made progress tackling sovereign-debt challenges, trimming demand. AGRICULTURE: Corn Declines on Speculation Demand for U.S. Exports May Weaken Corn dropped for a second day on speculation that increased competition among exporters may hurt demand for U.S. shipments. Wheat also fell while soybeans gained. Rubber Falls From Six-Week High as Stronger Yen May Hurt Demand Rubber fell from a six-week high after the Japanese currency gained, making the yen-denominated commodity more expensive, and a lack of progress toward a U.S. debt deal clouded the outlook for Asian exports. Paris Wheat May Rise 5.4% to Fibonacci Level: Technical Analysis Milling wheat futures are nearing short-term resistance levels and may climb to 210 euros ($299) a metric ton in Paris, implying a 5.4 percent increase, according to technical analysis by Paris-based farm adviser Agritel. China Pork Demand Means ‘Massive’ Imports From U.S., Stuart Says U.S. pork exports will jump 23 percent or more this year because of surging demand and prices in China, the world’s top consumer, according to Brett Stuart, the co-founder of farm- industry researcher Global AgriTrends. Japan Says Number of Cows Fed Radioactive Hay Doubles to 1,256 Japan’s government said the number of beef cattle fed with hay contaminated by radiation doubled. The number rose to 1,256 cows by yesterday, said Kazutoshi Nobuto, a spokesman for the Ministry of Agriculture, Forestry and Fisheries. China Sugar Imports at 110,000 Tons in June, Xinhua Says China imported 110,000 tons of sugar in June, the official Xinhua News Agency reported today, citing the Hong Kong-based China Customs Statistics Information Center. South Korean Importers Said to Buy 30,000 Tons of Milling Wheat Five Korean flour producers including CJ CheilJedang Corp. and Daehan Flour Mills Co. bought a total of 30,000 metric tons of Australian milling wheat in a tender yesterday, according to two industry executives who took part in the bidding. Fonterra Says Milk Volumes Since June 1 Rise From Year Ago Fonterra Cooperative Group Ltd. said milk volumes so far this season, which began June 1, are higher than the year- earlier period because of favorable weather conditions in most dairying regions in New Zealand. SHIPPING: China International Marine Shares Gain on Profit Estimate China International Marine Containers (Group) Co. gained the most in one month in Shenzhen intraday trading after the world’s largest maker of shipping containers said first-half profit may more than triple. ECONOMIES: Merkel, Sarkozy Find Joint Position on Greece for EU Summit German Chancellor Angela Merkel and French President Nicolas Sarkozy agreed on a joint position to solve Greece’s debt crisis on the eve of a summit convened to stamp out contagion in European bond markets. China’s Manufacturing May Contract for First Time in a Year China’s manufacturing may contract for the first time in a year as output and new orders drop, preliminary data for a purchasing managers’ index indicated. China CBRC Steps Up Risk Controls on Local Government Loans China’s banking regulator said it will step up oversight of property loans to the nation’s smaller cities and local government financing vehicle loans in the second half of this year. Asia Inflation Tough to Digest as Pork-to-Onion Costs Climb Asian cuisine may be too much of a good thing for some of the region’s central banks as policy makers grapple with the challenge of responding to spikes in the cost of staples from rice and pork to onions and chilies. Singapore Raises Inflation Forecast, Vigilant on Growth Risks Singapore’s central bank raised its inflation estimate and pledged to remain vigilant against risks to growth, saying the economy may expand in the lower half of its forecast range. Japan Exports Drop Less Than Estimated as Auto Decline Slows Japan’s exports fell less than economists expected as the decline in auto shipments slowed, underscoring the recovery of the world’s third-largest economy from the March 11 earthquake and tsunami. OTHER MARKETS: Oil Little Changed as China Report Counters U.S. Inventory Drop Oil traded near the highest close in a week in New York, swinging between gains and losses, as shrinking U.S. stockpiles countered signs manufacturing may have contracted in China, the world’s biggest energy user. Asian Stocks Drop on Concern China Manufacturing Will Contract Asian stocks dropped, with the regional benchmark index falling for the first time in three days, on concern factory output in China may have contracted in July and as companies from Hynix Semiconductor Inc. and Hyundai Heavy Industries Co. posted lower earnings. Euro Rises for Third Day on German-French Agreement on Greece The euro rose for a third day against the greenback after Germany and France reached an agreement on addressing Greece’s debt crisis before a summit convened to prevent contagion in Europe’s bond markets. Treasuries Fall a 2nd Day as Greece Accord Curbs Safety Demand Treasuries fell as talks between German Chancellor Angela Merkel and French President Nicolas Sarkozy raised optimism the European Union will help Greece avoid a default. To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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