ECONOMIC EVENTS, AGRICULTURE REPORTS: Forecast Prior Time (N.Y.) S&P/CS Home Price Index OCT 147.49 09:00 Consumer Confidence DEC 56.4 54.1 10:00 Richmond Fed Mfg. Index DEC 11 9 10:00 ABC Consumer Confidence DEC 26 -41 17:00 Metal Prices: ($/ton) Last % Chg RSI Copper 9,346 +0.5 67 Aluminum 2,412 -0.8 57 Zinc 2,308 +0.4 53 Lead 2,430 -0.8 54 Nickel 24,145 +2.3 54 Tin 26,800 -0.3 63 (Prices are from Dec. 23 close as LME was closed yesterday.) Other Markets: Last % Chg % YTD U.S. Dollar Index 79.921 -0.6 +2.7 Crude Oil $90.99 -0.01 +15 Gold $1,390.15 +0.5 +27 MSCI World Index 1,276.09 +0.3 +9.2 TOP STORY: Copper Tops Record in New York on Currency Alternative, Demand Copper gained to a record in New York for a second day as investors sought alternatives to depreciating currencies and on expectation demand will outpace supply as consumption improves. COMMODITY EXCLUSIVES: Commodities Beat Financial Assets Making Silver, Zinc Top Picks At a time when money managers’ concerns have swung between record government stimulus and the potential for a new recession, investors remain bullish on commodities that beat stocks and bonds for a second year. Gold’s Best Forecaster Says Prices to Reach $1,630: Chart of Day Gold may climb as high as $1,630 an ounce next year as investors seek protection from financial turmoil in Europe and the U.S. and as Chinese demand rises, according to Tom Kendall, the most accurate forecaster for 2010. MINING: Norilsk May Offer Investors Buyback on Rusal Rejection (Update1) OAO GMK Norilsk Nickel’s board may discuss whether to buy back stock from all shareholders tomorrow as a $12 billion bid to acquire United Co. Rusal’s stake in the Russian mining company failed to spark negotiations. PRECIOUS METALS: Gold Climbs for Third Day as Dollar Drop Boosts Investor Demand Gold advanced for a third day on speculation that the dollar’s retreat may boost demand for the precious metal as an alternative investment. AGRICULTURE: Soybeans at 28-Month High on Concern Dry Weather to Curb Crops Soybeans advanced to a 28-month high on concern that dry weather in Argentina will spread to parts of Brazil, hurting crops in the biggest exporters after the U.S. China’s January Soybean Imports May Decline, Ministry Forecasts China’s soybean imports in January may decline to 3.4 million metric tons from about 5.4 million tons this month, the Ministry of Commerce said on its website yesterday, citing estimates based on importers’ reports. Rubber Declines From Record as Stronger Yen Weakens Appeal Rubber declined as investors sold the commodity to lock-in gains after it climbed to a record for a sixth day and as a stronger Japanese currency weakened the appeal of yen- denominated contracts. Cotton Falls as China Boosts Rates; Orange Juice Advances Cotton tumbled for the third straight session after China raised interest rates, signaling commodity demand may ease. Orange juice jumped the most in two weeks on concern that a frost in Florida may hurt citrus crops. U.S. Hog-Breeding Herd Shrinks as Corn Costs Rise (Update1) The U.S. hog-breeding herd was 1.2 percent smaller on Dec. 1 than a year earlier, signaling that producers were reluctant to expand as feed costs climbed. Cattle Gain on Signs of Rising U.S. Beef Demand; Hogs Climb Cattle futures rose for the sixth straight session on signs that U.S. beef demand is climbing. Hogs also gained. Florida ‘Hard Freeze’ May Damage Orange Crop, MDA Says (Update1) Florida’s orange crop, the world’s largest after Brazil, may be damaged by an overnight frost, said Anthony Chipriano, a meteorologist at MDA Information Systems Inc. Sugar Declines on China Rate Increase; Coffee, Cocoa Advance Sugar had the biggest drop in three weeks after China increased interest rates, raising concern that demand for commodities may decline. Coffee and cocoa gained. ECONOMIES: Home Prices Probably Fell, Showing U.S. Economy’s Weak Link Home prices probably dropped in October, a sign housing will remain a weak link as the U.S. recovery accelerates into the new year, economists said before reports today. Japan’s Production Rises for First Time in Six Months (Update2) Japan’s industrial production increased for the first time in six months in November, signaling the nation’s export-led recovery will regain traction. China’s Record Interest-Rate Premium to Spur Yuan: Chart of Day The interest-rate premium investors obtain from yuan deposits over dollar accounts, at the highest in at least 14 years, will lure more capital into China and quicken gains in the Chinese currency, UBS AG said. OTHER MARKETS: Most Asian Stocks Decline, Dollar Slides on China Rate Concerns Most Asian stocks declined and the dollar fell on concern China will further raise interest rates and before the release of U.S. data that may show that housing remains a weak link amid a strengthening economic recovery. Dollar Falls Most in Two Weeks Versus Euro Before U.S. Home Data The dollar fell by the most in two weeks against the euro on concern a U.S. report today will show home prices declined, backing the case for the Federal Reserve to keep interest rates near zero. Oil Trades Near Two-Year High on Bets U.S. Stockpiles Declined Crude traded near a two-year high in New York on speculation stockpiles declined in the U.S., the world’s biggest oil consumer, and as the dollar extended losses. Asian Currencies Rise as Japan Output Boosts Recovery Optimism Asian currencies rose, led by the Philippine peso and South Korea’s won, after Japan’s industrial production increased for the first time in six months in November, bolstering confidence in the global economic recovery. Treasuries Lead Global Bond Losses Before Confidence Report Treasuries headed for the biggest loss among the world’s bond markets this month as economists said reports over the next three days will show improvement in consumer confidence, employment and home sales. SPORTS: England Needs Four Australian Wickets to Retain Cricket’s Ashes England needs another four wickets to retain cricket’s Ashes after reducing Australia to 169-6 in its second innings on day three of the fourth Test in Melbourne. To contact the reporter on this story: Luzi Ann Javier in Manila at ljavier@bloomberg.net To contact the editor responsible for this story: Richard Dobson at rdobson4@bloomberg.net

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