BLBG: U.S. Commodities Day Ahead: UN Sees a Risk of Wheat Hoarding
The following are the top stories on metals, agriculture and shipping.
ECONOMIC EVENTS:
Forecast Prior Time
(N.Y.)
U.S. Corn End Stocks FEB 745M 745M 8:30
Initial Jobless Claims FEB 5 410K 415K 8:30
Continuing Claims JAN 29 3900K 3925K 8:30
Monthly Budget Statement JAN -$55.0B -$42.6B 14:00
Export Sales Cotton-Total FEB 3 241.6 8:30
Export Sales Corn-Total FEB 3 1236.0 8:30
Export Sales Wheat-Total FEB 3 565.4 8:30
Export Sales SoyB-Total FEB 3 4107.9 8:30
METAL PRICES: ($/ton)
Last % Chg RSI
Copper 9,866 -0.6 59
Aluminum 2,531 -0.6 58
Zinc 2,418 -1.6 51
Lead 2,470 -2.0 45
Nickel 28,030 -1.2 69
Tin 31,250 0.0 84
OTHER MARKETS:
Last % Chg % YTD
U.S. Dollar Index 78.024 +0.5 -1.3
Crude Oil $86.50 -0.2 -5.3
Gold $1,357.9 -0.4 -4.4
MSCI World Index 1,335.70 -0.5 +4.3
TOP STORY:
UN Sees Risk of ‘Widespread’ Hoarding, Wheat Gains (Update2)
Global wheat harvests may trail demand for a second year, spurring hoarding and further price gains, said the United Nations.
COMMODITY EXCLUSIVES:
BRIC Bonds Penalized as Swaps Diverge From G7: Credit Markets
Rising food and commodity prices are driving the cost of protecting bonds of Brazil, Russia, India and China to the highest level in four months relative to the world’s largest economies.
Sao Paulo Sugar Producer Leads Junk Bond Rally: Brazil Credit
Grupo Virgolino de Oliveira, a Brazilian sugar and ethanol producer, is rewarding bond investors with returns that are eight times that of similar- rated emerging-market companies because of surging prices for the sweetener.
Vattenfall, Nuon Energy Seek EU Carbon Capture Project Funding
Vattenfall AB, the Swedish state- owned utility, and Amsterdam-based Nuon Energy NV applied for funds from the sale of 4.4 billion euros ($6 billion) of carbon dioxide permits to help projects that capture emissions.
Kumba’s Project Phoenix Is Not Open to ArcelorMittal, CEO Says
Anglo American Plc’s Kumba Iron Ore unit, locked in a supply dispute with ArcelorMittal South Africa Ltd., rejected the steelmaker’s claims to the Thabazimbi mine expansion project, saying it no longer had the right to participate.
INDUSTRIAL METALS:
Copper Falls for a Second Day on Concern About Inflation Curbs
Copper fell for a second day in London on concern demand might wane as countries including China, the world’s biggest consumer of the metal, move to counter inflation.
MINING:
Aquarius Platinum Profit Advances on Output, Prices (Update1)
Aquarius Platinum Ltd., the fourth- largest producer of the metal, said fiscal first-half profit surged on increased production and higher prices.
Rio Boosts Dividend, Starts Buyback After Profit Jump (Update1)
Rio Tinto Group, the world’s third- largest mining company, raised its dividend by 40 percent and announced a $5 billion share buyback after reporting record profit on higher prices for iron ore and copper.
Rio Tinto Extends Riversdale Offer as CSN Lifts Stake (Update3)
Rio Tinto Group extended its A$3.9 billion ($3.9 billion) offer for Riversdale Mining Ltd. as Brazil’s Cia Siderurgica Nacional SA again lifted its stake in the African coal project developer.
Carlos Slim Sees Colombia Ascending as Choice in Commodity Boom
Carlos Slim, named the world’s richest man by Forbes Magazine, said he’s seeking to boost his investments in Colombia because of the country’s open policy on oil exploration, its mineral assets and growing middle class.
PRECIOUS METALS:
Gold Declines in London on Recovery Outlook, Stronger Dollar
Gold declined for a second day in London on speculation an improving economy and stronger dollar will curb demand for the metal as an alternative investment.
Scotiabank Plans to Sell Gold to Consumers in Mexico, Dubai
Bank of Nova Scotia, which sells gold coins and bars to clients in Canada through an online store, plans to establish similar programs in countries such as Mexico and Dubai, Vice Chairman Barry Wainstein said.
Gold Funds in India to Top Equity Funds, Reliance Capital Says
Investments in gold funds in India, the world’s largest consumer of bullion, will top mutual fund equity investments in the next three to four years, according to Reliance Capital Asset Management Ltd.
AGRICULTURE:
Stocks Fall, Dollar Advances as Portugal’s Default Risk Rises
Stocks dropped, dragging Europe’s benchmark index lower for a third day, and the dollar strengthened as accelerating global inflation drives up borrowing costs. Portugal led an increase in the cost of insuring the region’s government debt against default.
Rubber Soars to Record as Climbing Tire Sales Boost Demand
Rubber advanced to an all-time high amid speculation record prices will not deter tiremakers from purchasing the raw material used in tires as auto sales climb.
Brazil’s Sugar Producers Locking in Prices, ICAP Brasil Says
Sugar producers in Brazil, the world’s biggest producer, are locking in prices by selling more of the sweetener for delivery in the next eight months, according to Marcos Mine, head of sugar and ethanol trading at ICAP Brasil.
China Wheat Drought May Last to Spring, Minister Says (Update1)
China, the largest wheat consumer, says the drought in the country’s main growing region may be prolonged, as prices surge to a record.
Cotton Rises to Record as USDA Cuts Global Production Forecast
Cotton rose to a record in New York after a U.S. government report showed global production will be smaller than previously forecast on lower output in Uzbekistan, the third-largest exporter.
Sugar Shortage May Drive Prices Higher, Kingsman Says (Update3)
A global sugar shortage will be exacerbated this year as cold weather in China and flooding in Australia cuts harvests, likely fueling a rally in prices from the highest level in 30 years, according to Kingsman SA.
Palm Oil Drops as Rally to Almost Three-Year High Deters Buyers
Palm oil declined after an advance to the highest level in almost three years deterred buyers and prompted investors to lock in gains.
Wheat Declines on Concern Rally to 29-Month High May Damp Demand
Wheat futures fell for the first time in four sessions on speculation a rally to the highest price in more than 29 months may damp interest from investors.
Egypt’s Suez Canal is open and operating normally today, Ahmed El Manakhly, head of traffic for the Suez Canal Authority, said by phone.
Russia’s Sovcomflot Buys Six Ice-Proof Tankers From Primorsk
OAO Sovcomflot, Russia’s biggest shipping company, purchased six ice-class tankers for transporting oil and gas from OAO Primorsk Shipping Co., according to an e-mailed statement.
ECONOMIES:
Asia Stocks, Won, Aussie Decline on China, U.S. Growth Outlook
Asian stocks fell while the won and Australian dollar slid, on concern that rising interest rates in China and unemployment in the U.S. will hamper the global economic recovery.
Chinese Developers Move Beyond Shanghai, Beijing, Defying Curbs
Chinese developers are building more homes in cities across the nation away from the financial hub of Shanghai and the capital Beijing, which may be the hardest hit by government measures to curb property prices.
King Faces Ticking Clock on Rates as Inflation Soars (Update1)
The clock is ticking for Bank of England Governor Mervyn King as the weakness in the economy forces policy makers to endure soaring inflation and refrain from raising interest rates.
The campaign for the top job at the European Central Bank was thrown open as the sudden and unexplained withdrawal of German front-runner Axel Weber cleared the way for a slew of candidates to replace Jean-Claude Trichet.
OTHER MARKETS:
Stocks Fall, Dollar Advances as Portugal’s Bonds Erase Losses
Stocks dropped, dragging Europe’s benchmark index lower for a third day, and the dollar strengthened as accelerating global inflation drives up borrowing costs. Portuguese yields erased gains after increasing to a euro-era record.
Dollar Advances Amid Stock Decline, European Inflation Concern
The dollar strengthened against all its major counterparts as stock markets declined, boosting demand for the U.S. currency.
Asian Currencies Drop After Global Funds Trim Stock Holdings
Asian currencies declined for a second day, led by South Korea’s won and Malaysia’s ringgit, after overseas investors trimmed holdings of regional assets on concern inflation will accelerate.
Europe Stocks Fall for Third Day; Air France, Credit Suisse Drop
European stocks declined for a third day amid growing concern that accelerating global inflation will lead to higher borrowing costs. Asian shares and U.S. index futures retreated.
NYSE Death as Dominant Exchange Presaged Deutsche Boerse Deal
The New York Stock Exchange, the symbol of American capitalism for more than a century, may merge with a German rival after losing ground to smaller competitors.
Egypt Says New Constitution Months Off as U.S. Slams Response
Egypt’s foreign minister said it will take four months to change the country’s constitution after the Obama administration criticized President Hosni Mubarak’s government for not sufficiently addressing the demands of protesters seeking an end to his three-decade rule.
Japan Budget Impasse May Mean Early Election for Kan (Update2)
Japanese Prime Minister Naoto Kan’s inability to break a stalemate over budget legislation threatens to make him the fifth straight premier to last no more than a year and end efforts to rein in the world’s largest public debt.
Crude Oil Rises in London on Mideast Supply Disruption Concern
Oil in London advanced a third day amid renewed concern that unrest in Egypt may lead to a disruption of supplies from the Middle East.
SPORTS:
Bale to Miss Milan Game With Back Injury, Guardian Says: 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
