Asia Stay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder.. http://www.brecorder.com/markets/commodities/asia.html Tue, 22 Jul 2014 23:49:46 +0000 SRA Framework 2.0 en-gb Gold dips as Asian stocks climb; safe-haven bids keep losses in check http://www.brecorder.com/markets/commodities/asia/185189-gold-dips-as-asian-stocks-climb;-safe-haven-bids-keep-losses-in-check.html http://www.brecorder.com/markets/commodities/asia/185189-gold-dips-as-asian-stocks-climb;-safe-haven-bids-keep-losses-in-check.html imageSINGAPORE: Gold eased on Tuesday as Asian shares gained strength but the metal continued to stay above $1,300 an ounce as escalating tensions over conflicts in Ukraine and the Gaza strip burnished the metal's safe-haven appeal.

Spot gold slipped 0.35 percent to $1,307 an ounce by 0554 GMT. It had gained as much as 0.6 percent in intraday trading on Monday, but failed to hold the gains and closed flat.

Asian stocks touched a three-year peak on Tuesday, despite lingering concerns about crises in Ukraine and Gaza, while the yen eased against the dollar and the euro.

"Uncertainty in Eastern Europe and the Middle East should provide support for the metal," Swiss precious metals trader MKS Group said in a note. "Immediate support (is) at $1,310 and a solid break through $1,325-26 (is) required for a continued move higher."

The United States, alarmed by escalating civilian bloodshed in an Israeli offensive in the Gaza Strip, took a direct role in efforts to secure a ceasefire on Monday, as the Palestinian death toll jumped to more than 500.

Despite growing calls for a halt to two weeks of fighting, violence raged on. Israel pounded the coastal strip, killing 28 members of a family in one strike, 11 people in an attack on a high-rise building and four in the shelling of a hospital, medics said.

In Ukraine, tensions continued to run high even as the remains of some of the nearly 300 victims of the Malaysian Airline plane downed over Ukraine were making their way to the Netherlands on Tuesday.

Western governments have threatened Russia with stiffer penalties for what they say is its backing of pro-Russian militia who, their evidence suggests, shot the plane down.

Some traders said sluggish physical demand could keep in check any rally in gold or even result in some near term losses.

Physical demand across Asia has been subdued in the last few months, as buyers take a pause after avid purchases earlier on due to a drop in prices.

On the Shanghai Gold Exchange, local gold prices were on par with London rates on Tuesday, indicating muted buying interest in the top consumer of gold, China.

Investors sold some positions in bullion after the metal snapped a six-week winning streak last week. SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings fell 1.8 tonnes to 803.34 tonnes on Monday.

Markets are also eyeing upcoming data from the United States to gauge the strength of the economy and its impact on the Federal Reserve's monetary policy.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Asia Tue, 22 Jul 2014 11:34:35 +0000
Palm falls for 2nd day on external pressures; tight supplies anticipated http://www.brecorder.com/markets/commodities/asia/185186-palm-falls-for-2nd-day-on-external-pressures;-tight-supplies-anticipated.html http://www.brecorder.com/markets/commodities/asia/185186-palm-falls-for-2nd-day-on-external-pressures;-tight-supplies-anticipated.html imageKUALA LUMPUR: Malaysian palm oil futures fell for a second day on Tuesday, following losses in Chinese soy markets and on worries of bumper soy crops, although anticipation of tighter palm supplies curbed losses and kept prices stuck in a tight range.

By the midday break, the benchmark October contract on the Bursa Malaysia Derivatives Exchange had edged down 0.4 percent to 2,287 ringgit ($720) per tonne, with prices locked between 2,282 and 2,293 ringgit.

While bearish external factors such as forecasts for an excellent soybean harvest and weakness in comparative soyoil markets continue to weigh on palm, market participants said prices were underpinned by prospects of a palm oil supply squeeze in the coming months.

"Prices are drifting sideways now - external conditions are bearish, but palm is friendly," said a trader with a foreign commodities brokerage in Kuala Lumpur.

"At these levels, you can see a lot of buying coming in. We have seen people locking in positions in the forwards, because it is even cheaper than the nearby months."

Palm oil inventories in Malaysia, the world's No.2 producer, slid to a 1-year low of 1.66 million tonnes at end-June.

Traders and analysts say stocks could continue to shrink, due to robust export demand and with output slated to fall as plantation workers go on holiday ahead of a Muslim festival at the end of this month.

"Stocks are currently very tight and this month's stocks will be even tighter. This is providing a strong support base for palm," the trader added.

Total traded volume on Tuesday stood at 11,888 lots of 25 tonnes, below the average 12,500 lots.

Technicals show Malaysian palm oil is expected to fall into a range of 2,250-2,268 ringgit per tonne, driven by a wave 3, said Reuters market analyst Wang Tao.

"This is the third wave of a five-wave cycle that developed from the June 25 high of 2,511 ringgit. It has a fierce character and may eventually travel to 2,220 ringgit, its 161.8 percent projection level," Tao added.

Better harvesting conditions for the US soybean crop have paved the way for a bumper supply of the competing oilseed, which would weaken soyoil prices and potentially channel food and fuel demand away from palm.

The US Department of Agriculture reported that soybean conditions improved during the past week to the best level in 20 years, surprising several analysts who expected steady to lower soy ratings.

Firm export data in July, however, signalled a recovery in demand for the tropical oil.

Cargo surveyors reported that exports of Malaysian palm oil products during July 1-20 rose between 8 and 10 percent from a month ago, with exports to China nearly doubling compared with the same period in June.

Indonesia, the world's biggest palm grower, said it expects to export between 19 million and 20 million tonnes of palm oil in 2014, a decline of up to 9.5 percent from the 21 million tonnes sold last year.

Its leading industry body, Indonesian Palm Oil Association (GAPKI), cited higher costs of logistics and shipping, as well as a "black campaign" against Indonesian palm oil that continues to impact its sales in the global market.

Indonesian exports in the first half of 2014 amounted to 9.75 million tonnes, down from around 11 million tonnes in the first half of 2013, according to GAPKI.

Malaysia exported 8.1 million tonnes in the same period, compared with 8.8 million tonnes last year, according to data from industry regulator the Malaysian Palm Oil Board.

In competing vegetable oil markets, the US soyoil contract rose 0.4 percent in early Asian trade, while the most active soybean oil contract on the Dalian Commodities Exchange fell 0.4 percent.

In other markets, Brent crude edged up towards $108 a barrel on Tuesday, pushed higher by escalating geopolitical tension over Ukraine and expectations of large draws in US oil stockpiles.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Asia Tue, 22 Jul 2014 11:28:03 +0000
Tokyo futures recover to end little changed http://www.brecorder.com/markets/commodities/asia/185181-tokyo-futures-recover-to-end-little-changed.html http://www.brecorder.com/markets/commodities/asia/185181-tokyo-futures-recover-to-end-little-changed.html imageTOKYO: Benchmark Tokyo rubber futures ended little changed on Tuesday, erasing earlier losses helped by a weaker yen and the strength in Shanghai futures, dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for December delivery rose 0.1 yen to settle at 202.3 yen ($1.99) per kg. TOCOM markets were closed on Monday due to a national holiday.

The contract touched an intraday low of 199.7 yen, the lowest since last Thursday.

"It started lower in the morning, dragged down from Monday's lower close in Shanghai futures, but a weaker yen helped the market recover some ground amid thin trading," said Kaname Gokon, general manager of research at brokerage Okato Shoji in Tokyo.

The dollar crept up 0.1 percent to 101.48 yen on a slight reduction in geopolitically-inspired risk aversion that lifted equities across Asia.

Starting Tuesday, TOCOM's day session is between 0000 GMT and 0615 GMT, ending 15 minutes earlier than before. Rubber night session is between 1630 and 1000 GMT, with trading beginning 30 minutes earlier. The total trading time is expanded by 15 minutes overall to increase trading opportunities.

The most-active rubber contract on the Shanghai futures exchange for January delivery rose 170 yuan to finish at 15,390 yuan ($2,500) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for August delivery last traded at 166.80 U.S. cents per kg, down 1.0 cent.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Asia Tue, 22 Jul 2014 11:20:01 +0000
NY cocoa may test resistance at $3,142 http://www.brecorder.com/markets/commodities/asia/185170-ny-cocoa-may-test-resistance-at-$3142.html http://www.brecorder.com/markets/commodities/asia/185170-ny-cocoa-may-test-resistance-at-$3142.html imageSINGAPORE: New York September cocoa may test a resistance at $3,142 per tonne, a break above which will lead to a further gain to $3,174.

The resistance has been formed around the 38.2 percent Fibonacci projection level of a presumed wave c starting at the June 25 low of $3,040. The big gain on July 21 signals a resumption of the wave c. A rise above the July 3 high of $3,149 will confirm the break above the resistance.

A correction from the current level may be limited to $3,107, but a deeper fall below this level could indicate bulls have not prepared themselves for testing the resistance.

Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Asia Tue, 22 Jul 2014 11:04:11 +0000
China iron ore, steel extend losses to hit 1-month lows http://www.brecorder.com/markets/commodities/asia/184915-china-iron-ore-steel-extend-losses-to-hit-1-month-lows.html http://www.brecorder.com/markets/commodities/asia/184915-china-iron-ore-steel-extend-losses-to-hit-1-month-lows.html imageSINGAPORE: Steel and iron ore futures in China fell to one-month lows on Monday, stretching steep losses from the prior session, weighed down by slow demand that has kept steel traders from replenishing inventories and iron ore stocks at ports high.

Stocks of five major steel products held by Chinese traders fell to 13.13 million tonnes on Friday, according to industry consultancy Mysteel. That is the lowest inventory level since December 2012, said Helen Lau, analyst at UOB-Kay Han Securities in Hong Kong.

"Because the inventory is so low, I expect some restocking by traders and end-users, but maybe only towards late August because seasonal demand is slowing down as the weather gets hotter," said Lau. Construction activity thins during summer in China.

Rebar for January delivery on the Shanghai Futures Exchange touched a session low of 3,043 yuan ($490), its weakest since June 20. It was down 1 percent at 3,054 yuan by midday.

Rebar, or reinforcing bar which is used in construction, dropped 2.5 percent on Friday.

China's commitment to spur economic growth via measures including infrastructure spending has helped lift prices of both steel and iron ore to their highest since late May before Friday's slide.

But traders said supply continued to outstrip demand for iron ore in the spot market, with Chinese steel mills still unloading excess cargoes back into the spot market.

Stocks of iron ore among Chinese mills rose to 33 days of use last week from 30 days in late June, said Lau, reflecting recent restocking after benchmark spot prices fell to a 21-month low of $89 a tonne last month.

At China's ports, the inventory of imported iron ore stood at 113.6 million tonnes on Friday, just slightly off the record high of 113.7 million tonnes reached earlier this month, according to SteelHome, which tracks the data at 44 Chinese ports.

The most-active iron ore contract for September delivery on the Dalian Commodity Exchange fell to 683 yuan a tonne, its lowest since June 24, before paring losses to trade at 688 yuan by midday, down 1.2 percent. The contract fell by its daily downside limit of 4 percent on Friday.

Iron ore for immediate delivery to China dropped nearly 1 percent to $96.60 a tonne on Friday, according to data compiled by Steel Index, falling marginally for all of last week after a four-week rally.

Worries over Chinese steel mills going under have also weighed on sentiment towards the sector.

"We assume the market is concerned by the domino effect of these collapses and the potential for banks to further tighten credit conditions," Standard Bank said in a note.

Zheng Boping, vice-general manager of Hunan Valin Steel , one of China's biggest steel producers, is being investigated for accepting bribes, state prosecutors said on Thursday.

Earlier this month, the semi-official China Business News reported that Xilin Iron and Steel Group, the biggest producer in the northeast province of Heilongjiang, was struggling with mounting debts that have left it unable to pay workers.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Asia Mon, 21 Jul 2014 04:52:11 +0000
Palm falls as weak soy, strong ringgit drag; exports support http://www.brecorder.com/markets/commodities/asia/184914-palm-falls-as-weak-soy-strong-ringgit-drag;-exports-support.html http://www.brecorder.com/markets/commodities/asia/184914-palm-falls-as-weak-soy-strong-ringgit-drag;-exports-support.html imageKUALA LUMPUR: Malaysian palm oil futures edged down on Monday, adding to losses after three straight weeks of declines, as weakness in comparative soyoil markets and a firm ringgit weighed, although an uptick in export data curbed the fall.

Cargo surveyor Intertek Testing Services reported that exports of Malaysian palm oil products during July 1-20 rose 7.8 percent to 868,843 tonnes from a month ago, due to bigger shipments to Europe and China. Exports to China nearly doubled compared to the same period in June.

While the firm export data signalled robust demand for the tropical oil, weakness in soyoil markets commonly tracked by palm, as well as a strenthening local currency, continued to drag.

The Malaysian ringgit rose 0.2 percent to 3.1780 against the greenback on Monday, making the feedstock more expensive for overseas investors and refiners.

"Our exports are okay, but the market is still very depressed over external factors, including the strength of the ringgit compared to last week," said a trader with a foreign commodities brokerage in Kuala Lumpur.

By the midday break, the benchmark October contract on the Bursa Malaysia Derivatives Exchange edged down 0.7 percent to 2,292 ringgit ($722) per tonne, with prices trading from 2,288 to 2,299 ringgit.

Prices fell 1.6 percent last week to post their third straight week of falls, adding to losses of nearly 6 percent so far in July.

Total traded volume stood at only 5,328 lots of 25 tonnes, less than half the average 12,500 lots.

"There's no clear direction as all the external bearish and domestic supportive news is well priced in," said a second Kuala Lumpur-based trader. "Slow trading in thin volumes is very much expected.

Technicals that showed a bearish target range of 2,250-2,268 ringgit per tonne remains unchanged for Malaysian palm oil, as indicated by its wave pattern and a Fibonacci projection analysis, said Reuters market analyst Wang Tao.

Another cargo surveyor Societe Generale de Surveillance will release export data for the same period later Monday.

In competing vegetable oil markets, the US soyoil contract shed 0.9 percent in early Asian trade, while the most active soybean oil contract on the Dalian Commodities Exchange slipped 0.3 percent.

In other markets, Brent crude held steady above $107 a barrel on Monday with investors eyeing an intensifying geopolitical crisis between Moscow and the West over the downing of a civilian jet in Ukraine last week.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Asia Mon, 21 Jul 2014 04:49:45 +0000
LME copper to fall to $6,891 http://www.brecorder.com/markets/commodities/asia/184906-lme-copper-to-fall-to-$6891.html http://www.brecorder.com/markets/commodities/asia/184906-lme-copper-to-fall-to-$6891.html imageSINGAPORE: LME copper is expected to fall to $6,891 per tonne, as it has broken below a support at $7,025.

The support was provided by the 61.8 percent Fibonacci retracement on the fall from the Jan. 2 high of $7,460 to the March 19 low of $6,321.

The next support will be at $6,891, the 50 percent retracement.

The fall seems to have accelerated, as indicated by the big loss on July 18, as a result, a bounce from the current level could be capped at $7,025, which has become a resistance.

The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice.

Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Asia Mon, 21 Jul 2014 03:41:30 +0000
Spot gold to hover above $1,305 http://www.brecorder.com/markets/commodities/asia/184905-spot-gold-to-hover-above-$1305.html http://www.brecorder.com/markets/commodities/asia/184905-spot-gold-to-hover-above-$1305.html imageSINGAPORE: Spot gold has found a support at $1,305 per ounce, and may hover above this level for half or one trading session before falling more.

The support has been identified as the 38.2 Fibonacci retracement on the rise from the June 3 low of $1,240.61 to the July 10 high of $1,345. Wave pattern indicates gold is riding on a powerful wave (3), the third wave of a big bearish five-wave cycle.

A drop to $1,300 will confirm the break below the support and the next support will be at $1,293, the 50 percent level, which is expected to be weak, unable to hold the fall towards the 61.8 percent retracement at $1,280.

The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice.

Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Asia Mon, 21 Jul 2014 03:40:49 +0000
LME aluminium neutral in $1,961-$1,999 range http://www.brecorder.com/markets/commodities/asia/184904-lme-aluminium-neutral-in-$1961-$1999-range.html http://www.brecorder.com/markets/commodities/asia/184904-lme-aluminium-neutral-in-$1961-$1999-range.html imageSINGAPORE: LME aluminium looks neutral in a range of $1,961-$1,999 per tonne and an escape will point a direction.

The range has been formed by the 76.4 percent and the 100 percent Fibonacci projection levels of an upward wave c, which developed from the June 12 low of $1,836.

A drop below $1,961 may signal a reversal of the uptrend and a bearish target at $1,937, the 61.8 percent retracement, will be established.

A rise above $1,999 will confirm the extension of the uptrend towards $2,038, the 123.6 percent projection level.

The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice.

Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Asia Mon, 21 Jul 2014 03:39:42 +0000
Shanghai copper to retest support at 49,260 yuan http://www.brecorder.com/markets/commodities/asia/184901-shanghai-copper-to-retest-support-at-49260-yuan.html http://www.brecorder.com/markets/commodities/asia/184901-shanghai-copper-to-retest-support-at-49260-yuan.html imageSINGAPORE: Shanghai copper is expected to retest support at 49,260 yuan per tonne, a break below which will lead to a further loss to 48,710 yuan.

The support is provided by the 50 percent Fibonacci retracement on the rise from the June 9 low of 46,940 yuan to the July 4 high of 51,580 yuan.

The next support will be at 48,710 yuan, the 61.8 percent retracement.

The depth of the fall from 51,580 yuan signals a reversal of the uptrend, as a result, copper may not hover above the current support very long.

A further bounce from the current level may be limited to 49,810 yuan, the 38.2 percent retracement.

The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice.

Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Asia Mon, 21 Jul 2014 03:36:36 +0000