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, 01 Feb 2015 10:00:10 +0000 SRA Framework 2.0 en-gb Iron ore set for worst month since May as rout extends http://www.brecorder.com/markets/commodities/asia/220983-iron-ore-set-for-worst-month-since-may-as-rout-extends.html http://www.brecorder.com/markets/commodities/asia/220983-iron-ore-set-for-worst-month-since-may-as-rout-extends.html imageSHANGHAI/SINGAPORE: Spot iron ore prices were heading for their biggest monthly fall since May last year as a glut kept the steelmaking commodity at its weakest since 2009.

Iron ore futures in China and Singapore extended recent losses on Friday with investors waiting for stronger signals that would point to a pick-up in Chinese steel demand.

"Some investors switched to long positions in the past two days as they expected investment in infrastructure projects could pick up this year, but the gains could not be sustained," said Li Yajing, a Guangzhou-based analyst at Guangyong Futures.

China plans to spend a further 800 billion yuan ($128 billion) on building railway tracks this year after exceeding its 2014 investment target, local media reported on Thursday.

Steel demand in China's northern regions slows down during winter along with construction activity and some analysts warn the weakness could persist throughout the year as the economy slows further.

China plans to cut its growth target to around 7 percent in 2015, its lowest goal in 11 years, sources said.

Benchmark 62 percent grade iron ore for immediate delivery to China fell 0.6 percent to $62.30 a tonne on Thursday, its lowest since May 2009, according to data compiled by The Steel Index.

Iron ore has lost 12.5 percent so far in January, stretching a 47 percent drop in all of 2014.

The most-active iron ore contract for May delivery on the Dalian Commodity Exchange was down 0.2 percent at 473 yuan a tonne by the midday break. It was heading for a third weekly loss in a row.

The March iron ore contract on the Singapore Exchange fell 1.2 percent to $61.80 a tonne.

Copyright Reuters, 2015

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nasir_only4u@hotmail.com (Nasir Ahmed) Asia Fri, 30 Jan 2015 07:22:17 +0000
Iron ore prices at new 5-1/2 year low as rout takes hold http://www.brecorder.com/markets/commodities/asia/220743-iron-ore-prices-at-new-5-12-year-low-as-rout-takes-hold.html http://www.brecorder.com/markets/commodities/asia/220743-iron-ore-prices-at-new-5-12-year-low-as-rout-takes-hold.html imageSHANGHAI/LONDON: Spot iron ore prices hit a new 5-1/2 year low on Thursday as more signs emerged of slowing Chinese economic growth, although iron ore and steel futures in China edged higher on interest from bargain hunters.

A deepening iron ore glut and worries over a sharper economic slowdown in top buyer China will drive the average 2015 price for the steelmaking ingredient to a record low of $68 a tonne, a Reuters poll showed.

China plans to cut its growth target to around 7 percent this year, its lowest goal in 11 years.

"We see weakness going into the Chinese New Year and probably a bit of a lift afterwards. The Chinese steel mills and iron ore traders we just surveyed are looking to restock a bit," said Bart Jaworski, analyst at Davy Research.

He added, however, the firm's survey found a "resounding bearishness" for iron ore prices over the next 12 months.

Benchmark 62 percent grade iron ore for immediate delivery to China fell 0.6 percent to $62.30 a tonne, its lowest since May 2009, data compiled by the Steel Index showed.

Iron ore futures for May delivery on the Dalian Commodity Exchange closed up 1.3 percent at 476 yuan ($76) a tonne, while the most traded May rebar contract on the Shanghai Futures Exchange closed up 1.7 percent at 2,507 yuan a tonne. Both contracts had their biggest daily gains since Jan.6.

Analysts said the futures rebound was a short-term technical bounce as fundamentals would continue to be weak this year.

"Steel demand will improve only slightly after the Chinese New Year given the government has approved a lot of infrastructure projects recently. But it won't offset sluggish demand amid the property downturn," said Yu Yang, a Shanghai-based analyst at Shenyin & Wanguo Futures.

Baosteel, China's biggest listed steelmaker, will cut hot-rolled coil prices for March bookings. And industry data showed output from China's large steel mills fell 5.1 percent over Jan. 11-20 as producers responded to weak demand.

The cuts have weighed heavily on iron ore prices, forcing many high-cost miners to suspend production or shut permanently.

"There's more evidence higher cost miners are exiting the market," Fortescue's head of sales and marketing, David Liu, told reporters on a conference call after the company delivered a strong quarterly report.

Liu said if prices stay low and there is no further Chinese stimulus, a total of 50 million-70 million tonnes of Chinese production is expected to exit this year. Outside China, about 80 million-100 million tonnes of high cost output was in the process of exiting the market, Liu said.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Asia Thu, 29 Jan 2015 15:59:11 +0000
CBOT wheat to fall more to $4.80 http://www.brecorder.com/markets/commodities/asia/220696-cbot-wheat-to-fall-more-to-$480.html http://www.brecorder.com/markets/commodities/asia/220696-cbot-wheat-to-fall-more-to-$480.html imageSINGAPORE: CBOT March wheat is expected to fall further to $4.80 per bushel, as it has broken a support at $5.06-3/4.

The support was provided by the 86.4 percent Fibonacci retracement on the uptrend from the Sept. 25, 2014 low of $4.80 to the Dec. 18, 2014 high $6.77. It is the last barrier towards $4.80. The lower channel line of a falling channel points a similar target.

A rise above $5.06-3/4 could signal the break below this level was false, and the target at $4.80 has to be temporarily aborted.

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, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Asia Thu, 29 Jan 2015 13:21:48 +0000
TOCOM pulls back from 2-week high on weaker oil prices http://www.brecorder.com/markets/commodities/asia/220685-tocom-pulls-back-from-2-week-high-on-weaker-oil-prices.html http://www.brecorder.com/markets/commodities/asia/220685-tocom-pulls-back-from-2-week-high-on-weaker-oil-prices.html imageTOKYO: Benchmark Tokyo rubber futures dropped on Thursday, pulling back from a two-week high hit the previous day, due to weaker oil prices and a higher yen as well as nagging worries about global oversupply.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, have been hovering between 190 and 220 yen so far this year amid concerns about a glut of supply and weak demand in top consumer China.

The TOCOM rubber contract for July delivery finished 2.9 yen lower at 199.3 yen ($2) per kg, after declining to as low as 198.1 yen.

"In early trade, the market reacted to a decline in oil and a climb in yen overnight, but some bargain-hunting buys kicked in once the benchmark came near 198 yen," a Tokyo-based trader said.

Oil remained weak in Asia on Thursday after data showing record U.S. stockpiles sent prices tumbling to the lowest level in nearly six years in the previous session and analysts said a global glut would continue to keep the market under pressure.

The U.S. dollar was quoted around 117.65 in late Asia trade, staying within the prevailing 117.00-119.00 yen range seen over the past week or so.

"Although there are concerns over supply glut, we may see an upward trend in rubber prices soon as we get closer to the wintering season," the trader said.

Thailand, Malaysia, Vietnam and several other rubber-producing countries will see the onset of the wintering season, when trees shed leaves, from February through April. In Indonesia, wintering lasts from February to May before it starts again in July and runs through September.

The most-active rubber contract on the Shanghai futures exchange for May delivery fell 160 yuan to finish at 13,145 yuan ($2,104) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 138.2 U.S. cents per kg, down 2.6 cents.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Asia Thu, 29 Jan 2015 13:01:55 +0000
NY cocoa to drop more to $2,664 http://www.brecorder.com/markets/commodities/asia/220683-ny-cocoa-to-drop-more-to-$2664.html http://www.brecorder.com/markets/commodities/asia/220683-ny-cocoa-to-drop-more-to-$2664.html imageSINGAPORE: New York March cocoa is expected to drop to $2,664 per tonne, as it has broken a support at $2,732.

The support was provided by the 50 percent Fibonacci projection level of a downward wave C, the third wave of a three-wave cycle that developed from the Sept. 25, 2014 high of $3,349.

The next support will be at $2,664, the 61.8 percent level, a break below which will open the way towards $2,581, the 76.4 percent level.

A sudden surge above $2,732 could signal the break below this level was false, and the 38.2 percent level at $2,799 may be approached.

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, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Asia Thu, 29 Jan 2015 12:59:27 +0000
Palm oil at 6-week low on slowing demand, weaker energy http://www.brecorder.com/markets/commodities/asia/220657-palm-oil-at-6-week-low-on-slowing-demand-weaker-energy.html http://www.brecorder.com/markets/commodities/asia/220657-palm-oil-at-6-week-low-on-slowing-demand-weaker-energy.html imageSINGAPORE: Malaysian palm oil slid more than 3 percent on Thursday as the market snapped two sessions of gains to drop to its lowest in almost six weeks, under pressure from plentiful global edible oil supplies and slowing demand.

Crude oil prices at six-year lows have reduced the appeal of vegetable oils in making renewable fuels, while local palm oil yields are expected to improve later in the year.

"Palm oil has been unable to hold on to gains in the face of persistent weakness in soy complexes and lower energy prices," said one Kuala Lumpur-based trader. "The bearish scenario in commodity markets will keep pressure on palm oil."

The benchmark April contract finished down 3.5 percent, or 77 ringgit, at 2,133 ringgit ($588) per tonne after dropping to 2,128 ringgit a tonne, its lowest since Dec. 19.

Traded volumes stood at 56,385 lots of 25 tonnes each, well above the typical 35,000 lots.

Oil remained weak in Asia on Thursday after data showing record U.S. stockpiles sent prices tumbling to the lowest level in nearly six years in the previous session and analysts said a global glut would continue to keep the market under pressure.

On the technical front signals will be mixed for palm oil until it gets out of a neutral range of 2,154-2,211 ringgit per tonne, Wang Tao, a Reuters market analyst for commodities and energy said.

Recent flooding in Malaysia is expected to dent palm oil output in the first quarter but should lead to higher yields for the rest of the year, putting pressure on prices in a well supplied market.

The demand remains weak. Exports of Malaysian palm oil products during Jan. 1-25 fell 17.7 percent from a month earlier, cargo surveyor Intertek Testing Services said on Monday.

In other vegetable oil markets, U.S. soyoil fell 1.4 percent in Asian trade and the most active soybean oil contract on the Dalian Commodity Exchange lost 1 percent.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Asia Thu, 29 Jan 2015 12:24:56 +0000
Palm climbs more on weakening ringgit, traders wary http://www.brecorder.com/markets/commodities/asia/220517-palm-climbs-more-on-weakening-ringgit-traders-wary.html http://www.brecorder.com/markets/commodities/asia/220517-palm-climbs-more-on-weakening-ringgit-traders-wary.html imageJAKARTA: Malaysian palm oil rose for a second day on Wednesday, recouping some of its recent losses, but traders were wary and questioned how far the recovery could go since demand remained weak.

"Today is a technical retracement," said a trader at a foreign commodities brokerage in Kuala Lumpur, adding that a weakening in the ringgit on Wednesday had provided support.

The improvement in palm prices on Wednesday was a reaction to the decline of more than 10 percent seen since mid-January, a second trader said.

"The drop was a bit on the sharp side. It was overdone," he said. "Nothing is going on. The FOB prices are basically unchanged. In the cash market there is nothing."

By the Wednesday's close, the benchmark April contract had gained 1.47 percent to 2,207 ringgit ($610) per tonne, after opening lower at 2,164 ringgit. Traded volume stood at 55,607 lots of 25 tonnes, well above the typical 35,000 lots.

Despite that high volume, demand for palm oil remained weak, traders said, partly as a result of oil prices that have subsided around 60 percent since mid-2014, limiting demand for biodiesel.

Malaysia's Sime Darby Bhd, the world's top oil palm planter by land size, said on Wednesday it had obtained the European Commission's approval to buy New Britain Palm Oil Ltd for about $1.74 billion.

Oil slipped to $49 a barrel on Wednesday after an industry report said US crude stocks rose by the most in two decades last week, and as a firmer dollar added to pressure on prices.

The US soyoil contract for March fell 0.23 percent in Asian trade. The most active May soybean oil contract on the Dalian Commodity Exchange shed 0.5 percent.

The Malaysian ringgit weakened by 0.48 percent to 3.6165 per dollar and has now lost almost 15 percent since September. A weaker ringgit normally leads to increased demand for palm, since it makes the oil cheaper for foreign buyers.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Asia Wed, 28 Jan 2015 15:01:06 +0000
TOCOM rises to 2-week high amid lacklustre trade http://www.brecorder.com/markets/commodities/asia/220471-tocom-rises-to-2-week-high-amid-lacklustre-trade.html http://www.brecorder.com/markets/commodities/asia/220471-tocom-rises-to-2-week-high-amid-lacklustre-trade.html imageTOKYO: Benchmark Tokyo rubber futures rose to a 2-week high on Wednesday, following a mid-day gain in Shanghai futures, but trade was lacklustre and further gains were capped on profit-taking, dealers said.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, started on a weak note in early trade, but a sudden gain in mid-day trade in Shanghai prompted fresh buys, said Jiong Gu, analyst at Yutaka Shoji Co.

The TOCOM rubber contract for July delivery finished 1.2 yen higher at 202.2 yen per kg. It earlier climbed to as much as 203.9 yen, the highest since Jan. 13.

"Shanghai market was choppy. I heard buy orders from hedge funds boosted Shanghai futures for a short while, but the prices came off later as most of other investors are still bearish about the market due to weak demand in China," Gu said.

The most-active rubber contract on the Shanghai futures exchange for May delivery rose to as high as 13,455 yuan per tonne before retreating to finish at 13,280 yuan per tonne, down 25 yuan.

"TOCOM trade was very light, with most of investors doing only day-trades as it is not clear which direction the market is heading," Gu said.

The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 139.50 U.S. cents per kg, down 0.90 cent.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin) Asia Wed, 28 Jan 2015 12:13:50 +0000
Japan receives no offers for regular feed-wheat, barley tender http://www.brecorder.com/markets/commodities/asia/220445-japan-receives-no-offers-for-regular-feed-wheat-barley-tender.html http://www.brecorder.com/markets/commodities/asia/220445-japan-receives-no-offers-for-regular-feed-wheat-barley-tender.html imageTOKYO: Japan's Ministry of Agriculture said it received no offers for feed-quality wheat or barley in a simultaneous buy and sell (SBS) auction that closed late on Wednesday.

The ministry had sought 120,000 tonnes of feed wheat and 200,000 tonnes of feed barley to be loaded by Feb. 13 and arrive in Japan by March 13 in the tender that is usually conducted weekly.

It is seeking the same amounts for each grain to be loaded by May 31 and arrive in Japan by July 31 in a similar tender that will be held on Feb. 4.

Japan buys a small portion of feed wheat and barley via so-called SBS auctions, in which end-users and importers specify the origin, price and quantity of grain, allowing millers to meet their varied needs for the feed grain.

Copyright Reuters, 2015

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nasir_only4u@hotmail.com (Nasir Ahmed) Asia Wed, 28 Jan 2015 10:30:22 +0000
CBOT wheat still targets $5.06-3/4 http://www.brecorder.com/markets/commodities/asia/220410-cbot-wheat-still-targets-$506-34.html http://www.brecorder.com/markets/commodities/asia/220410-cbot-wheat-still-targets-$506-34.html imageSINGAPORE: CBOT March wheat still targets $5.06-3/4 per bushel, as indicated by a Fibonacci retracement analysis and a falling channel.

A former support has been broken, which was provided by the 76.4 percent Fibonacci retracement on the uptrend from the Sept. 25, 2014 low of $4.80 to the Dec. 18, 2014 high of $6.77. The next support will be at $5.06-3/4, the 86.4 percent retracement.

The lower channel line of a falling channel even points a much lower level, which is close to $4.80. A rebound from the current level may be limited to $5.26-1/2, now a resistance.

Copyright Reuters, 2015

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nasir_only4u@hotmail.com (Nasir Ahmed) Asia Wed, 28 Jan 2015 08:25:11 +0000