ECONOMIC EVENTS, AGRICULTURE REPORTS: Forecast Prior Time (N.Y.) U.S. Existing Home Sales AUG 4.75M 4.67M 10:00 U.S. Existing Home Sales MoM AUG 1.7% -3.5% 10:00 FOMC Rate Decision SEP 21 0.25% 0.25% 14:15 USDA Broiler Eggs Set SEP 16 187294 15:00 METAL PRICES: ($/ton) Last % Chg RSI Copper 8,293 -0.1 30 Aluminum 2,328 +0.1 38 Zinc 2,096 +0.6 38 Lead 2,277 -1.8 39 Nickel 21,218 0.0 46 Tin 22,750 +0.4 37 OTHER MARKETS: Last % Chg % YTD U.S. Dollar Index 77.204 +0.3 -2.3 Crude Oil $86.40 -0.6 -5.4 Gold $1,809.0 +0.3 +27 MSCI World Index 1,159.42 -0.2 -9.4 TOP STORY: Bullion Vaults Run Out of Space as Gold Rallies: Commodities Deep in the 7.4-acre Singapore FreePort next to Changi International Airport’s runways is the bullion vault of Swiss Precious Metals, behind seven-metric-ton steel doors built to survive a plane crash or earthquake. COMMODITY EXCLUSIVES: India Said to Lift Curbs on Coal Mining in Dense Forests (2) A group of Indian ministers agreed to allow companies to seek approval to mine coal in some dense forest areas, overturning an environment ministry ban, according to two government officials. Rice to Drop as Indian Exports Intensify Export Competition (2) Rice, which has beaten corn and soybeans in the past year, may drop as India restarts non-basmati exports after lifting a ban, buyers including Indonesia purchase less than expected and global harvests gain to a record. European Naphtha Exports Sinking to Year’s Low: Energy Markets Production cuts at refineries in Europe may reduce naphtha exports bound for Asia to the lowest level in almost a year, lifting benchmark prices in Japan. Parrilla Hires Ex-CastleBay Manager for Commodity Hedge Fund Diego Parrilla hired Belgacem Zerguine, formerly at CastleBay Capital Management Pte, for his commodity hedge fund that will start in the fourth quarter. Cheapest Gas Buoys Kirby Shipping Dow Chemicals: Freight Markets The world’s cheapest natural gas means Kirby Corp. barges are making more trips along the Mississippi River and Quality Distribution Inc. tanker trucks are rolling along America’s highways more frequently. INDUSTRIAL METALS: Copper Climbs in New York on Speculation Fed Will Support Growth Copper rose in New York on speculation Federal Reserve policy makers will take steps to boost U.S. growth, supporting demand for industrial metals. LME Lead Stockpiles Rise to Highest Since at Least 1970 (1) Lead stockpiles in warehouses monitored by the London Metal Exchange climbed the most in eight months to the highest level in at least 41 years. Copper Imports by China Climb for Third Month on Low Stocks (1) Refined-copper imports by China, the largest user, gained for a third month in August on increasing arbitrage trade between London and Shanghai amid low domestic stockpiles. MINING: Anglo American Faces Miners’ Silicosis Claims in U.K. Court (1) Anglo American Plc faces claims for “hundreds of millions of pounds” from former miners suffering deadly lung diseases after working in South African gold mines, according to the law firm that filed suit in a London Court. Zambia’s Banda Takes Early Lead in Presidential Vote Count Zambian incumbent President Rupiah Banda took an early lead in the vote count after yesterday’s election in Africa’s biggest copper producer, the country’s electoral commission said. BHP Says Global Imbalances, High Debt Creating Uncertainty (2) BHP Billiton Ltd., the world’s largest mining company, said short-term global imbalances and high levels of debt in Europe and the United States are creating economic uncertainty. India Said to Lift Curbs on Coal Mining in Dense Forests (1) A group of Indian ministers agreed to allow companies to seek approval to mine coal in some dense forest areas, overturning an environment ministry ban, according to two government officials. PRECIOUS METALS: Gold May Gain for Second Day on Growth Concerns, Fed Speculation Gold may gain for a second day in London as concerns about economic growth and speculation the Federal Reserve may announce further stimulus measures boost demand for bullion as an alternative investment. India’s Gold Imports to Slump on Prices This Month, Group Says Gold imports by India, the world’s largest bullion consumer, may decline 50 percent this month as higher prices cool demand, according to the Bombay Bullion Association. Iridium Climbs to $1,085 an Ounce, Highest Since at Least 2001 Iridium for immediate delivery climbed 0.9 percent to $1,085 an ounce by 8:02 a.m. in London, the highest price since at least 2001, according to Johnson Matthey Plc data on Bloomberg. AGRICULTURE: India’s Sugar Output May Total 24.6 Million Tons, Minister Says Sugar output in India, the world’s second-biggest producer, may total 24.6 million metric tons in the 2011-2012 crop season, Food Minister K.V. Thomas told reporters in New Delhi today. India’s Wheat Harvest May Advance to a Record for Fifth Year (1) Wheat production in India, the world’s second-largest grower, may climb to a record for a fifth year in the 2011-2012 season, as favorable monsoon rains boost planting prospects, a unit of state-trader MMTC Ltd. said. Wheat Advances for a Second Day on Unfavorable Crop Conditions Wheat rose for a second day in Chicago on speculation that adverse weather in the U.S., the biggest exporter, may hurt yields for the grain as well as corn and soybeans. Coffee Falls as Supply May Improve as Crops Start; Cocoa Steady Coffee fell in London on speculation supplies may improve as the harvest in Colombia, Central America and Vietnam starts on Oct. 1. Cocoa and sugar were little changed. India’s Rice Output May Advance to as Much as 100 Million Tons India’s rice production this year may gain to between 99 million metric tons and 100 million tons, while wheat output may advance to as high as 90 million tons, Asheesh Majumdar, chief general manager at MMTC Transnational Pte., said at a conference in Singapore today. Rubber Gains From Six-Week Low as Stimulus Outlook Spurs Demand Rubber rebounded from a six-week low on speculation that the Federal Reserve may take additional steps to bolster the U.S. economy, supporting demand for the commodity used in tires and gloves. SHIPPING: Russia to Maintain Urals Exports From Primorsk Oct. 1 to Oct. 11 Russia, the world’s largest oil producer, will maintain exports of Urals crude from its Baltic Sea port of Primorsk from Oct. 1 to Oct. 11 at 23 cargoes, according to a preliminary loading schedule obtained by Bloomberg News. Surgutneftegas Said to Sell Urals Crude Oil to BP for October OAO Surgutneftegas, a Russian oil producer, sold 100,000 metric tons of Urals crude for loading in October from the Baltic Sea port of Primorsk to BP Plc through a tender, said two traders who participate in the market. ECONOMIES: China Faces ‘Hot-Money’ Surge on Financial Market Turmoil (1) Turmoil in global financial markets may be spurring a surge in flows of speculative capital into China as investors bet on the nation’s growth and prospects for gains in the yuan. China Endorsing Tobacco in Schools Adds to $10 Trillion GDP Cost In dozens of rural villages in China’s western provinces, one of the first things primary school kids learn is what made their education possible: tobacco. Loan Curbs Help Push Short-Term Yields to Record: China Credit Companies in China face record interest rates on short-term debt as curbs on lending force them to rely on commercial paper to pay back loans. China-Like Growth Fails to Stem Warrant Slide: Argentina Credit Argentine warrants tied to gross domestic product are falling to a six-month low on concern the global economic slowdown will curb output in a country growing faster than all major developing nations outside China. BOE Says Most Officials See More QE as Increasingly Probable (2) Bank of England officials said they may need to buy more bonds to bolster a faltering recovery after holding off adding stimulus this month in a decision that was “finely balanced.” Papandreou Convenes Cabinet on Accelerating Cuts to Get Aid Greek Prime Minister George Papandreou convenes his Cabinet to press for accelerating budget cuts to ensure the next tranche of an international rescue package is delivered next month to stave off default. Barroso Says Euro Bonds Should Be Preserved as an Option (2) Policy makers battling a European debt crisis shouldn’t rule out issuing joint euro-area bonds and must develop integration tools to make that possible, even if German opposition means it can’t be done immediately, European Commission President Jose Barroso said. Fed Has Few Tools to Heal Economy Weakened by Housing Market U.S. mortgage rates are the lowest in at least four decades, with a 30-year fixed loan available at 4.09 percent. That didn’t help Alexis Wolf buy a townhome in Beaverton, Oregon. OTHER MARKETS: European Stocks Retreat on Greek Debt Talks; U.S. Futures Gain European stocks retreated as officials said they plan to return to Athens next week to complete a review of the Greek economy. Asian shares and U.S. index futures gained. Most Asian Stocks Rise on China Optimism; Hong Kong Shares Drop Most Asian stocks rose after a gauge of economic indicators signaled growth in China is withstanding Europe’s debt crisis and a faltering U.S. economy. The MSCI Asia Pacific Index trimmed advances in late trading as European markets opened lower. Oil Drops in New York on Bets of Lower Demand, Higher Supplies Oil fell in New York as investors bet that fuel demand in the U.S. is waning as stockpiles rise, while supplies from the Middle East and Africa grow. Brent crude in London widened its premium over U.S. futures. Libya Forming Cabinet Amid Struggle to Take Holdout Towns (1) Libya’s new rulers extended talks to form a government while their troops fought to oust Muammar Qaddafi’s loyalists from Bani Walid and Sirte. U.S. Nationals Held in Iran to Be Freed Today, Lawyer Says (2) Two U.S. nationals held in Iran on charges of espionage and illegal entry into the country will be released today, the state-run Fars news agency said, citing Masoud Shafiei, their lawyer. SPORTS: Tonga Defeats Japan 31-18 to Break Rugby World Cup Losing Streak Tonga defeated Japan 31-18 in their Rugby World Cup Pool A match to end its four-match losing streak at the tournament. Nottingham Forest to Sign QPR Defender Clint Hill: Roundup The following is a roundup of soccer stories from U.K. newspapers, with clickable links to the Web. No Men as 50,000 Women, Children Watch Fenerbahce, Hurriyet Says A full stadium of almost 50,000 women and children watched Fenerbahce draw 1-1 with Manisaspor yesterday after Turkish soccer authorities banned men from the match as a punishment for bad behavior, Hurriyet newspaper reported. To contact the editor responsible for this story: Stuart Wallace in London at swallace6@bloomberg.net

Source