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 Sun, 24 Jul 2016 04:52:13 +0000 Joomla! 1.5 - Open Source Content Management en-gb Chinese iron ore futures fall, posting weekly loss http://www.brecorder.com/markets/commodities/asia/310155-chinese-iron-ore-futures-fall-posting-weekly-loss.html http://www.brecorder.com/markets/commodities/asia/310155-chinese-iron-ore-futures-fall-posting-weekly-loss.html imageSHANGHAI: Chinese iron ore futures fell on Friday and posted a weekly loss of 4.5 percent, pressured by rising port inventories and falling steel prices in the world's top producer of the metal.

Dalian Commodity Exchange iron ore for September

lost 1 percent to 428.5 yuan ($64.24) a tonne by close, after earlier rising more than 3 percent on a bump in spot prices on Thursday. The contract declined for the first week after four straight weeks of gains.

"Iron ore futures earlier tried to catch up with spot prices, but growing port inventories and slower demand due to falling steel output dampened prices," said Li Wenjing, an analyst with Industrial Futures in Shanghai.

Li said after taking taxes and port fees into account that iron ore futures were as much as $5 a tonne lower than spot.

Iron ore for immediate delivery to China's Tianjin port <.IO62-CNI=SI> rose 1.8 percent to $56.10 a tonne on Thursday from the previous day, according to The Steel Index.

Iron ore stockpiles at big Chinese ports <CUS-STKTOT-IORE> also climbed further, curtailing demand for inbound cargoes. By Friday, port iron ore inventories were at 107.1 million tonnes, up 1.5 percent on Friday from a week ago and the highest since September 2014, Custeel.com data showed.

Some support for iron ore prices came when Vale SA said it sees its full-year iron ore output coming in at the lower end of forecasts this year and below expectations in 2017.

Vale's iron ore output was 86.8 million tonnes in the second quarter, down 2.8 percent from a year earlier, the miner also said, a sign the No. 1 producer of the raw material is effectively reining in production at low-margin facilities.

For steel futures, October prices for benchmark rebar on the Shanghai Futures Exchange dropped 1.8 percent to 2,310 yuan a tonne. Steel futures fell 6.8 percent for the week after four weeks of gains.

Copyright Reuters, 2016

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parvezjabri@yahoo.com (Parvez Jabri) Asia Fri, 22 Jul 2016 08:27:14 +0000
TOCOM ends down on low oil prices, strong yen http://www.brecorder.com/markets/commodities/asia/310154-tocom-ends-down-on-low-oil-prices-strong-yen.html http://www.brecorder.com/markets/commodities/asia/310154-tocom-ends-down-on-low-oil-prices-strong-yen.html imageTOKYO: Benchmark Tokyo rubber futures ended down 0.9 percent on Friday, coming under pressure from low oil prices and a stronger yen against the dollar.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, slipped from a 1-1/2-month high hit in the previous session.

"Weak oil and a stronger yen hurt market sentiment," said a Japan-based dealer.

The Tokyo Commodity Exchange rubber contract for December delivery <0#2JRU:> finished 1.5 yen lower at 162.8 yen ($1.54) per kg. For the week, the benchmark contract rose 2.3 percent.

Crude oil futures eased on Friday, extending big falls in the previous session as investors reassessed US data underlining the glut in petroleum, while Iraqi crude exports are also on the rise.

The US dollar was quoted around 105.96 yen, compared with around 106.82 yen on Thursday afternoon.

Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 1.3 percent from last Friday, the exchange said on Friday.

The most-active rubber contract on the Shanghai futures exchange for September delivery fell 155 yuan to finish at 11,420 yuan ($1,712) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for August delivery last traded at 132.1 US cents per kg, down 1.5 cent.

Copyright Reuters, 2016

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parvezjabri@yahoo.com (Parvez Jabri) Asia Fri, 22 Jul 2016 08:26:03 +0000
Indian trader PEC gets lone bid for 120,000 tonnes corn import tender http://www.brecorder.com/markets/commodities/asia/310153-indian-trader-pec-gets-lone-bid-for-120000-tonnes-corn-import-tender.html http://www.brecorder.com/markets/commodities/asia/310153-indian-trader-pec-gets-lone-bid-for-120000-tonnes-corn-import-tender.html imageNEW DELHI: India's state-run trader PEC has received only one bid for a tender floated to import 120,000 tonnes of non-genetically modified organisms (GMO) corn, a government source said on Friday.

The sole bidder offered only 25,000 tonnes of corn at $252.3 per tonne, the source said, highlighting difficulties in sourcing non-GMO corn, which is grown by only a few countries in the world.

India has asked a government-backed trader to import an extra half a million tonnes of duty-free, non-GMO corn to keep a lid on domestic prices and overcome any shortage, the trade ministry said earlier this month.

Copyright Reuters, 2016

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parvezjabri@yahoo.com (Parvez Jabri) Asia Fri, 22 Jul 2016 08:25:46 +0000
Spot gold may retest support at $1,313 http://www.brecorder.com/markets/commodities/asia/310138-spot-gold-may-retest-support-at-$1313.html http://www.brecorder.com/markets/commodities/asia/310138-spot-gold-may-retest-support-at-$1313.html imageSINGAPORE: Spot gold may retest a support at $1,313 per ounce, as its bounce caused by this barrier could have more or less completed.

The support is provided by the 50 percent Fibonacci retracement on the rise from the June 24 low of $1,251.16 to the July 11 high of $1,374.91. Gold seems to have lost its bullish momentum after approaching a resistance at $1,335, the 38.2 percent Fibonacci retracement on the fall from $1,374.91 to the July 21 low of $1,310.56.

Chances are the bounce may end around $1,335 and the downtrend could resume, as based on a double-top forming around $1,375, gold is expected to fall to $1,298, the 61.8 percent retracement.

Copyright Reuters, 2016

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parvezjabri@yahoo.com (Parvez Jabri) Asia Fri, 22 Jul 2016 07:30:50 +0000
Shanghai copper biased to break resistance at 38,670 yuan http://www.brecorder.com/markets/commodities/asia/310135-shanghai-copper-biased-to-break-resistance-at-38670-yuan.html http://www.brecorder.com/markets/commodities/asia/310135-shanghai-copper-biased-to-break-resistance-at-38670-yuan.html imageSINGAPORE: Shanghai copper is biased to break a resistance at 38,670 yuan per tonne, and rise more towards the next resistance at 39,590 yuan, as its consolidation in the neutral range of 37,940-38,670 yuan could be ending.

For a chart: http://tmsnrt.rs/29Ptkah

These resistances are identified respectively as the 61.8 percent and the 76.4 percent Fibonacci projection levels of an upward wave C, the third wave of a three-wave cycle from the Nov. 24, 2015 low of 33,150 yuan.

Copper has been hovering around 38,670 yuan for a few days and may end its consolidation soon. A rise above 38,900 yuan may confirm a break above the resistance.

Support will be at 37,940 yuan, the 50 percent level, a break below which could cause a loss to the 38.2 percent level at 37,200 yuan.

Copyright Reuters, 2016

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parvezjabri@yahoo.com (Parvez Jabri) Asia Fri, 22 Jul 2016 07:29:54 +0000
Palm eases from 2-week high, strong demand limits losses http://www.brecorder.com/markets/commodities/asia/310124-palm-eases-from-2-week-high-strong-demand-limits-losses.html http://www.brecorder.com/markets/commodities/asia/310124-palm-eases-from-2-week-high-strong-demand-limits-losses.html imageSINGAPORE: Malaysian palm oil edged lower on Friday, taking a breather after climbing to a two-week high in the last session, although expectations of strong demand for the vegetable oil kept a floor under the market.

The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange lost 0.7 percent to 2,337 ringgit ($574.9) a tonne by the midday break. On Thursday, it climbed to 2,368 ringgit, highest since July 5.

Volumes stood at 14,116 lots at the end of the morning trade.

"We are seeing some chart-related selling at current levels, as bargain hunting and short covering start to fade," said one Kuala Lumpur-based trader, adding though that export sales are expected to remain strong.

Exports of Malaysian palm oil products for July 1-20 rose 14 percent from a month earlier, data from cargo surveyor Intertek Testing Services showed, while Societe General de Surveillance reported export growth of 15.3 percent.

The market is awaiting the next update on export demand from cargo surveyors due on Monday.

"Bullish fundamentals and a weaker ringgit will cushion any attempt to sell," the Kuala Lumpur trader said.

For the week so far, palm oil futures are up 2.6 percent - the second straight week of gains - with a decline in soybean prices failing to dent the bullish sentiment in palm oil.

"Palm is still the cheapest edible oil in the market," the trader said, adding that palm olein is being quoted $80 a tonne below soybean oil in Argentina for August shipment.

While Chicago soybeans have lost more than five percent this week, soyoil is set to end the week little changed.

Palm oil may drop to a support at 2,302 ringgit per tonne, as it failed to break a resistance at 2,374 ringgit, according to Wang Tao, a Reuters analyst for commodities and energy technicals.

The most-actively traded contract for palm olein on the Dalian Commodity Exchange gave up 2.4 percent, while Dalian soybean oil dropped 1.5 percent.

Copyright Reuters, 2016

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parvezjabri@yahoo.com (Parvez Jabri) Asia Fri, 22 Jul 2016 07:14:14 +0000
Palm oil hits two-week top, further gains seen on strong demand http://www.brecorder.com/markets/commodities/asia/309991-palm-oil-hits-two-week-top-further-gains-seen-on-strong-demand.html http://www.brecorder.com/markets/commodities/asia/309991-palm-oil-hits-two-week-top-further-gains-seen-on-strong-demand.html imageSINGAPORE: Malaysian palm oil futures extended gains on Thursday, climbing to the highest in more than two weeks with prices underpinned by strong demand of the vegetable oil.

A weaker Malaysian ringgit, which makes palm oil cheaper for importers holding other currencies, also fuelled gains in prices of the tropical oil, traders said.

The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange closed up 0.3 percent at 2,353 ringgit ($582.70) a tonne.

Earlier in the session, it climbed to 2,368 ringgit, highest since July 5. Traded volumes stood at 38,766 lots.

"With better demand seen in July and August, prices will continue to rise," said one Kuala Lumpur-based trader.

"We anticipate prices to surge, with 2,500 ringgit as the near-term target," the trader added.

Indicating firmer demand, exports of Malaysian palm oil products for July 1-20 rose 14 percent from a month earlier, data from cargo surveyor Intertek Testing Services showed, while Societe General de Surveillance reported export growth at 15.3 percent.

Palm oil prices have risen this week after plumbing a 10-month low last week. The weak Malaysian ringgit, in which palm oil is priced and which helped to lift the market, lost more ground on Thursday and hit its lowest in three weeks.

Still, there could be some headwinds for palm oil from the weakness in Chicago soybean futures, which have lost more than 10 percent over the last three weeks.

Palm oil and soybean oil compete for a share of the global vegetable oil market.

On the technical front, palm oil may end its current bounce around a resistance at 2,374 ringgit, according to Wang Tao is a Reuters analyst.

The most-actively traded contract for palm olein on the Dalian Commodity Exchange finished almost unchanged, while Dalian soybean oil added 0.6 percent.

Copyright Reuters, 2016

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imad_kueconomist@yahoo.com (Imaduddin) Asia Thu, 21 Jul 2016 12:39:18 +0000
China June sugar imports up 54pc on lower prices http://www.brecorder.com/markets/commodities/asia/309928-china-june-sugar-imports-up-54pc-on-lower-prices.html http://www.brecorder.com/markets/commodities/asia/309928-china-june-sugar-imports-up-54pc-on-lower-prices.html imageBEIJING: China, the world's top sugar buyers, imported 369,189 tonnes of raw sugar in June, up 54 from the same period a year earlier and much more than prior months as low global prices attracted customers.

Imports for the first six months, however, were down 43 percent to 1.3 million tonnes year-on-year, customs data showed on Thursday.

China's sugar imports hit a record in 2015 but have slowed this year as global prices climbed. Strong inflows last year have also led to ample stockpiles.

But a dip in global prices to around 15 cents per pound in April triggered renewed buying, said one trader, pushing up arrivals in June.

Imports in July could be as high as 700,000 tonnes, he added, declining to be identified as he is not allowed to talk to media.

Domestic prices are also rising, which will also help spur more imports during the peak summer consumption period, said analysts.

However, full-year imports are set to be well below last year's 4.85 million tonnes, with one trader estimating they could decline to 4 million tonnes.

"Fundamentally the pressure (on domestic prices) is still there, with smuggling and big stockpiles," he said.

The mismatch between domestic and international sugar prices and Chinese government restrictions on imports through import permits has spurred smuggling of white sugar along China's southern borders, curbing purchases of raw sugar.

And while China's 2016 crop was lower than expected at 8.7 million tonnes, leaving a sizeable deficit to plug, recent heavy rain across much of China has not impacted key sugar regions in the south, he added.

Copyright Reuters, 2016

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parvezjabri@yahoo.com (Parvez Jabri) Asia Thu, 21 Jul 2016 08:11:56 +0000
Shanghai rebar, iron ore futures rally after heavy losses http://www.brecorder.com/markets/commodities/asia/309925-shanghai-rebar-iron-ore-futures-rally-after-heavy-losses.html http://www.brecorder.com/markets/commodities/asia/309925-shanghai-rebar-iron-ore-futures-rally-after-heavy-losses.html imageSHANGHAI: Chinese steel futures surged more than 5 percent on Thursday after three straight days of losses, lifted by a spike in spot prices and supported by a technical correction.

Spot prices of some steel products in a key producing region of Tangshan in northern China rose by 80 yuan ($11.98) a tonne, traders said, lifting the futures markets.

October prices for benchmark construction material rebar on the Shanghai Futures Exchange surged 5.5 percent to a session high of 2,432 yuan a tonne before closing 3.9 percent higher at 2,396 yuan a tonne.

The October contract had lost more than 8 percent over the first three days of this week on profit-taking after hitting a 2-1/2-month high on July 13.

"Steel products inventories started to edge up, but they remain much lower from a year ago, and the government's campaign for overcapacity cuts is working," said a fund researcher in Beijing.

Steel product inventories owned by big mills rose 4.3 percent to 13.80 million tonnes by July 10, the latest data from the China Iron & Steel Association showed.

Steel output in the world's top producer is expected to slow in July but remain at a high level, after the average daily rate hit a record in June.

Some analysts warned the rebound, driven in part by a technical correction after the previous slump, will be curbed as China's slower property market will keep weighing on demand in the world's top consumer.

"It's a technical recovery after the previous slump, and I don't see big upward momentum in the short term as demand slows, hit by the rainy season, a weaker property market and fading stimulus hopes," said Tian Xinyuan, an analyst with Founder CIFCO Futures in Beijing.

A big spike in steel futures lifted steelmaking raw materials.

On the Dalian Commodity Exchange, iron ore rose by a daily limit to 448 yuan a tonne and closed up 5.7 percent at 447 yuan a tonne.

Coke futures surged 5.3 percent and coal gained 2.6 percent, respectively, by close.

Iron ore for immediate delivery to China's Tianjin port steadied at $55.10 a tonne on Wednesday, according to The Steel Index, the same as Tuesday's close, which was the lowest since July 1.

Copyright Reuters, 2016

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parvezjabri@yahoo.com (Parvez Jabri) Asia Thu, 21 Jul 2016 08:07:41 +0000
Palm oil rises to two-week high on exports data, fall in ringgit http://www.brecorder.com/markets/commodities/asia/309769-palm-oil-rises-to-two-week-high-on-exports-data-fall-in-ringgit.html http://www.brecorder.com/markets/commodities/asia/309769-palm-oil-rises-to-two-week-high-on-exports-data-fall-in-ringgit.html imageJAKARTA: Malaysian palm oil futures extended gains, touching a two-week high on Wednesday on improving demand amid expectations of further weakness in the ringgit.

Benchmark palm oil futures on the Bursa Malaysia Derivatives Exchange finished 1.9 percent higher at 2,347 ringgit ($583), after touching a two-week high of 2,354 ringgits earlier in the session.

Palm has seen consistent gains in the past week after hitting a 10-month low early last week.

"We are seeing good buying interest both in cash and futures, the expectation of further weakness in the ringgit and return of major buyers are adding cadence," said a Kuala Lumpur-based trader.

"Prices are expected to remain bullish and a minor rally will resume until the end of July."

Exports of Malaysian palm oil products for July 1-20 rose 14 percent from a month earlier, cargo surveyor Intertek Testing Services said on Wednesday, while Societe General de Surveillance reported 15.3 percent export growth.

Meanwhile, the Malaysian ringgit, in which the benchmark is priced, eased for a third day, touching its weakest in nearly two weeks.

On a technical basis, palm may rise towards the next resistance at 2,374 ringgit, as suggested by a Fibonacci retracement analysis, Reuters technical analyst Wang Tao said.

The most actively traded September contract for palm olein on the Dalian Commodity Exchange rose 0.7 percent while Dalian soybean oil, a substitute for palm oil, gained 1.6 percent.

Copyright Reuters, 2016

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parvezjabri@yahoo.com (Parvez Jabri) Asia Wed, 20 Jul 2016 12:26:37 +0000
Asia Rice-Prices up in India, near 5-mnth low in Vietnam http://www.brecorder.com/markets/commodities/asia/309747-asia-rice-prices-up-in-india-near-5-mnth-low-in-vietnam.html http://www.brecorder.com/markets/commodities/asia/309747-asia-rice-prices-up-in-india-near-5-mnth-low-in-vietnam.html imageHANOI: Asian rice export prices were mixed on Wednesday, with prices in top exporter India edging up on higher demand and lower supplies, while Vietnamese prices fell to near the lowest in five months on a lack of buying interest, traders said.

India's 5 percent broken parboiled rice rose by $4 a tonne this week to $382-$392 a tonne, free on board (FOB), on higher demand and dwindling supplies.

"Demand is improving. Prices could rise by another $15 (per tonne) in the next few weeks," said M. Adishankar, executive director at Sri Lalitha, a leading rice exporter based in the southern Indian state of Andhra Pradesh.

India's rice exports this year are forecast to fall 9.7 percent from 2015 to 10 million tonnes, the UN Food and Agriculture Organization (FAO) said in a report on Monday.

Overall, the FAO forecast world rice trade to drop 1.5 percent from 2015 to 43.9 million tonnes, revising down from 44.9 million tonnes in its April forecast.

The lower projection reflected import reductions by buyers such as Bangladesh, China, the Philippines and Sri Lanka due to ample stocks or tightened border protection, the FAO said.

Rice imports this year by China, the world's top importer of the grain, are forecast to ease 4 percent from 2015 to 6.8 million tonnes, as "heightened border surveillance has slowed inflows from Myanmar and Vietnam", the FAO said.

In Vietnam, the world's third-largest exporter after India and Thailand, prices for its 5 percent broken rice for summer-autumn grain widened to $357-$365 a tonne on Wednesday, FOB basis, from $360-$365 a week ago, traders said.

The variety stood at $355 a tonne on Monday, on par with prices on Feb. 24, 2016, based on Thomson Reuters data.

"Rice quality is not good so nobody is buying," a Vietnamese trader in Ho Chi Minh City said, referring to newly harvested grain from Mekong Delta's summer-autumn crop.

Traders said most African buyers have now turned to Thailand, while top importer China has not returned for new purchases.

The Thai rice market is closed on Wednesday for a holiday.

Its 5-percent broken rice stood unchanged at $420-$435 a tonne, FOB basis, for all of last week.

India, Thailand and Vietnam together account for around 60 percent of global rice trade.

Copyright Reuters, 2016

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parvezjabri@yahoo.com (Parvez Jabri) Asia Wed, 20 Jul 2016 10:44:41 +0000