The following are the top stories on metals, agriculture and shipping. TOP STORY: 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. COMMODITY EXCLUSIVES: Hedge Funds Bet Gas Will Fall in Warm New Year: Energy Markets Hedge funds raised bearish natural gas bets by the most since October on forecasts that higher- than-normal temperatures in the first weeks of the New Year will reduce demand for the heating fuel. India Onion Prices May Drop as Daily Arrivals Rise, Holkar Says Onion prices in India, the world’s second-biggest grower, may continue a decline as arrivals in wholesale markets increase and after the government asked state companies to sell the vegetable at less than market rates. INDUSTRIAL METALS: Copper Futures Gain to Record 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. China Cuts First-Round Rare Earth Export Quotas by 11% (Update3) China cut its rare earths export quotas by 11 percent in the first round of permits for 2011, threatening to worsen a global shortage of the minerals needed for smartphones, hybrid cars and guided missiles. MINING: Queensland Evacuates People as Floods Cut Coal Output (Update1) Flooding and heavy rainfall in Australia’s Queensland, the nation’s largest sugar and coal producing region, may continue today as the state government declares disaster zones and evacuates residents. PRECIOUS METALS: Gold Rises in New York as Dollar’s Drop Boosts Investor Demand Gold futures advanced in New York on speculation that the dollar’s retreat may boost demand for the precious metal as an alternative investment. Silver also rose. Silver Will Lead 2011 Gains in Commodities Prices, Survey Shows Silver will lead gains in commodities next year, comparing closing prices last week to the high forecasts, based on the median estimate of more than 100 analysts, traders and investors surveyed by Bloomberg News. 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. AGRICULTURE: Soybeans Rise on Latin America Drought; Wheat Climbs on Floods Soybeans rose to the highest level in 28 months in Chicago on concern the dry weather hurting crops in Argentina will spread to Brazil. Wheat rose on forecasts for rain and flooding in parts of eastern Australia. Palm Oil Gains to 33-Month High as Dry Weather Cuts Soy Outlook Palm oil climbed to a 33-month high on concern that a prolonged drought in regions of South America may reduce output of soybeans, boosting the demand outlook for vegetable oils made from other plants. Florida’s Orlando, Tampa Near Freezing Point, Meteorologist Says Orlando and Tampa, in Florida’s orange-growing region, were around freezing point at 3:30 a.m. local time, said Jim Dale, senior meteorologist at British Weather Services, in an e-mailed comment today. Rubber Declines from Record on Yen’s Rally, Chinese Rate Concern 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. ECONOMIES: China May Front-Load Tightening to Fight Inflation (Update2) China’s monetary tightening in 2011 may be mainly in the first half as officials tackle the fastest inflation in more than two years, JPMorgan Chase & Co. and Morgan Stanley said. U.S. Retailers’ Holiday Sales Increase 5.5%, Most Since 2005 U.S. retailers’ 2010 holiday sales jumped 5.5 percent for the best performance in five years as shoppers snapped up clothing and jewelry at Macy’s Inc., Tiffany & Co. and other stores. More H.K. Property Measures Could Hurt ‘Real Buyer,’ HSBC Says Any additional measures by Hong Kong’s government to cool house-price gains would run the risk of crimping demand among “real buyers” as well as speculators, a senior HSBC Holdings Plc executive said. Housing Starts Seen Rising to 3-Year High With Boost for Jobs Federal Reserve Chairman Ben S. Bernanke may be about to get help in his attempt to boost the economy, from an industry at rock-bottom: housing. French Economy Grew Less Than Estimated in 3rd Quarter (Update1) France’s economic expansion slowed more than originally estimated in the third quarter as a drop in output overshadowed rising household spending. OTHER MARKETS: Dollar Weakens Before Housing Data; Stocks Fluctuate, Bonds Rise The dollar weakened and the Swiss franc climbed to a record before a U.S. housing report that may indicate prices fell, while European bonds rose as France’s economy expanded less than initially estimated. Index futures advanced and stocks fluctuated. 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. European Stocks Little Changed Before U.S. Data; Alcatel Rises European stocks were little changed after the Stoxx Europe 600 Index yesterday fell the most in a month, as investors await data from the world’s largest economy. Asian shares and U.S. futures advanced. Euro Pain Turns to 23% Gain for Europeans in S&P 500 (Update1) For all the losses facing Europeans this year, investors from the region who bought U.S. stocks as the euro weakened are getting the best returns in a decade. Oil Trades Near Two-Year High on Bets Weather Will Boost Demand Crude rose to trade near a two-year high in New York on speculation that cold weather in the U.S. and Europe will boost demand in industrialized nations. SPORTS: England Moves Within Four Wickets of Retaining Cricket’s Ashes England needs another four wickets to retain cricket’s Ashes with a match to spare after reducing Australia to 169-6 in its second innings on day three of the fourth Test in Melbourne. 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. Australia Reaches 95-1, Trails England by 320 in 4th Ashes Test Australia reached 95-1 in its second innings at tea on day three of the fourth Ashes cricket Test in Melbourne, still needing another 320 runs to make England bat again after conceding a record first-innings lead. To contact the editor responsible for this story: Stuart Wallace in London at swallace6@bloomberg.net

Source