Europe Stay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder.. http://www.brecorder.com/markets/commodities/europe.html Sun, 25 Jan 2015 12:12:38 +0000 SRA Framework 2.0 en-gb Gold slips from 5-month high as dollar climbs on ECB move http://www.brecorder.com/markets/commodities/europe/219419-gold-slips-from-5-month-high-as-dollar-climbs-on-ecb-move.html http://www.brecorder.com/markets/commodities/europe/219419-gold-slips-from-5-month-high-as-dollar-climbs-on-ecb-move.html imageLONDON: Gold fell on Friday, shedding part of the previous day's gains as markets digested the mixed implications of a European Central Bank plan to pump out around 1 trillion euros to reflate the economy.

The metal, often seen as a hedge against inflation, jumped more than 1 percent above $1,300 an ounce on Thursday after the announcement.

But with the euro hitting an 11-year low against the dollar, gold prices have since pared some of those gains as investors focused on the impact of the stronger US currency, which makes dollar-denominated assets more expensive for foreign investors.

"Gold was completely dislocated from the dollar yesterday, meaning that euro-gold is the best performing commodity this year, helping dollar gold stay fairly stable around $1,300," Saxo Bank senior manager Ole Hansen said. "But that strength in the dollar is now proving too much."

Spot gold was down 0.3 percent at $1,297.20 an ounce by 1337 GMT. Bullion peaked at $1,306.20 on Thursday, its highest since Aug. 15, and it was still headed for a third straight weekly gain.

US gold futures were down $3.50 at $1,297.30 an ounce. The dollar rose up to 1.1 percent against a basket of currencies, mostly due to euro weakness, while European shares had their biggest two-week rally in five years.

Euro-priced gold hit its highest since April 2013 at 1,167.60 euros an ounce.

Spot gold is up almost 10 percent since the beginning of the year as political uncertainties in the euro zone and worries about global economic growth lifted investment demand.

Traders were now likely to turn to Sunday's election in Greece and next week's Federal Open Market Committee (FOMC) policy meeting for clues about the wider economic environment and when US interest rates might rise.

The Fed is expected to repeat that global risks have yet to throw the US recovery or its rate hike plans off track despite the growing number of central banks cutting rates and ramping up stimulus.

Still, concerns over the global economy and positive chart patterns should support gold in the short term, with $1,320 and $1,350 "achievable upside targets", said INTL FCStone in a note.

Among other precious metals, spot silver was down 0.1 percent at $18.26 an ounce. Palladium lost 0.6 percent at $768.75 an ounce, while platinum fell 0.4 percent to $1,273.40 an ounce.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Fri, 23 Jan 2015 20:37:39 +0000
NY cocoa drops to 1-year low, raw sugar slides http://www.brecorder.com/markets/commodities/europe/219409-ny-cocoa-drops-to-1-year-low-raw-sugar-slides.html http://www.brecorder.com/markets/commodities/europe/219409-ny-cocoa-drops-to-1-year-low-raw-sugar-slides.html imageLONDON: New York cocoa dropped to a one-year low on Friday, under pressure from the weakest Asia grind data in at least three years, while raw sugar tumbled more than 5 percent after automatic sell orders were triggered.

Arabica coffee on ICE Futures US recovered slightly after hitting a six-month low, with dealers eyeing forecasts for rainfall in top grower Brazil. Cocoa extended losses after cocoa processing in Asia dropped to its weakest level in at least three years in the fourth quarter of 2014.

The 17.2 percent year-on-year drop in Asian cocoa grinding outpaced Europe, the world's biggest cocoa processing region, where it fell 7.4 percent over the period.

"The Asian grind was another poor number, on top of the European and North American numbers last week," a senior London-based cocoa futures broker said.

"London cocoa is getting some support from weaker sterling (against the dollar.)" New York March cocoa traded down $28, or 1 percent, at $2,773 per tonne at 1442 GMT, after touching $2,761 per tonne, the lowest for the spot contact since January 2014.

The increased pace of arrivals at top grower Ivory Coast and improved weather in West Africa also attracted selling, traders said.

London May cocoa was down 9 pounds, or 0.5 percent, at 1,930 pounds per tonne.

"Continued selling pressure could then see losses test support towards 1,900 pounds," said Kash Kamal, research analyst with Sucden Financial.

March raw sugar was down 0.12 cent, or 0.8 percent, at 15.79 cents a lb, paring losses after sinking to 15.08 cents a lb.

Traders said sell-stops were triggered at 15.60 cents. "I would have thought for now the 15 cent area should hold," a senior London-based broker said. He said the recent rally had been overdone and that Thai sugar supplies were plentiful.

March white sugar traded down $1.1, or 0.3 percent, at $406.80 a tonne.

March arabica coffee firmed slightly on chart-based buying in choppy technically driven dealings.

ICE March arabica futures were up 0.2 cents, or 0.1 percent, at $1.6015 per lb, after touching a six-month low of $1.5940.

March robusta coffee was down $8, or 0.4 percent, at $1,933 a tonne.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Fri, 23 Jan 2015 20:27:45 +0000
Gold slips 1.2pc as dollar climbs on ECB move http://www.brecorder.com/markets/commodities/europe/219398-gold-slips-12pc-as-dollar-climbs-on-ecb-move.html http://www.brecorder.com/markets/commodities/europe/219398-gold-slips-12pc-as-dollar-climbs-on-ecb-move.html imageLONDON: Gold fell as much as 1.2 percent on Friday as the dollar rose and markets digested the mixed implications of a European Central Bank plan to pump out about 1 trillion euros to reflate the euro zone's flagging economy.

The metal, often seen as a hedge against inflation, jumped more than 1 percent above $1,300 an ounce on Thursday after the ECB announcement.

But with the euro hitting an 11-year low against the dollar, gold prices have since pared some of those gains as investors focused on the impact of the stronger US currency, which makes dollar-denominated assets more expensive for foreign investors.

"Gold was completely dislocated from the dollar yesterday, meaning that euro-gold is the best performing commodity this year, helping dollar gold stay fairly stable around $1,300," Saxo Bank's Ole Hansen said. "But that strength in the dollar is now proving too much."

Spot gold dropped to a session low of $1,284.26 an ounce and was down 0.9 percent at $1,289.40 by 1536 GMT. Bullion peaked at $1,306.20 on Thursday, its highest since Aug. 15, and it was still headed for a third straight weekly gain. US gold futures were down $11.40 at $1,289.20 an ounce.

The dollar rose by up to 1.1 percent against a basket of currencies, mostly due to euro weakness, while European shares had their biggest two-week rally in five years.

Euro-priced gold hit its highest since April 2013 at 1,167.60 euros an ounce.

Spot gold has risen by about 9 percent since the beginning of the year as political uncertainties in the euro zone and worries about global economic growth lifted investment demand.

Traders are now likely to turn to Sunday's election in Greece and next week's Federal Open Market Committee (FOMC) policy meeting for clues on the wider economic environment and when US interest rates might rise.

The Fed is expected to repeat that global risks have yet to throw the US recovery or its rate-hike plans off track despite the growing number of central banks cutting rates and ramping up stimulus.

"People are coming to the conclusion that while the ECB is getting more expansionary, the Fed may be forced to be less restrictive because of the headwinds to inflation from the drop in oil prices, which can trigger some delay in interest rate hikes and would be positive for gold," Julius Baer analyst Carsten Menke said.

Among other precious metals, spot silver was down 0.8 percent at $18.16 an ounce.

Palladium lost 1 percent to $763.98 an ounce, while platinum fell 0.5 percent to $1,271.50 an ounce.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Fri, 23 Jan 2015 20:10:59 +0000
India to open coal to commercial mining firms soon, minister says http://www.brecorder.com/markets/commodities/europe/219383-india-to-open-coal-to-commercial-mining-firms-soon-minister-says.html http://www.brecorder.com/markets/commodities/europe/219383-india-to-open-coal-to-commercial-mining-firms-soon-minister-says.html

imageDAVOS: India expects to hold auctions for private firms to mine and sell coal in the near future, the country's coal and power minister Piyush Goyal said but first wants to deal with mines that are directly linked to plants that use the fuel.

To boost output and cut imports, Prime Minister Narendra Modi passed an executive decree in December to open up India's nationalised coal industry. Bids have been invited from firms that use coal for their own power, steel or cement plants.

"Once my actual user requirements are broadly met, I'm hoping to start opening up to private miners," Goyal told Reuters on the sidelines of the World Economic Forum in Davos.

"I've not applied my mind entirely to it, but I don't know whether the entire process for all the actual users could be done within this year. But somewhere in the near future I do see that happening." Indian conglomerates such as the Adani Group, controlled by billionaire Gautam Adani, and GVK are likely to bid for commercial coal blocks to cash in on fast-rising demand from the power industry.

Goyal also said the decks were clear for a 10 percent sale of the government's stake in Coal India Ltd, which could help raise about $4 billion towards meeting the asset sale target of $10 billion for the fiscal year to March-end.

"If the timing is right and it is in the interests of the government and the people of India that it should be this year, we'll do it," Goyal said at the "Make in India" lounge set up to attract investment to Asia's third largest economy. "But I'm not privy to timing exactly as we speak."

In a major victory for Modi, Coal India workers unions earlier this month called off a five-day strike on its second day. The five powerful unions of the world's largest coal company were opposed Modi's move to sell a stake and open up the industry, but cancelled the strike after Goyal assured them a committee would be formed to address their concerns.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Fri, 23 Jan 2015 19:49:17 +0000
EU wheat futures at two-week high on weak euro http://www.brecorder.com/markets/commodities/europe/219376-eu-wheat-futures-at-two-week-high-on-weak-euro.html http://www.brecorder.com/markets/commodities/europe/219376-eu-wheat-futures-at-two-week-high-on-weak-euro.html

imageLONDON: Euronext wheat futures rose on Friday to a two-week high as a tumbling euro made Paris prices more attractive to investors and underlined upbeat export prospects for European wheat.

Gains on Euronext were curbed however by a subdued US market, ample global supplies and psychological resistance around the 200 euro threshold. March milling wheat on Euronext was up 0.75 euros or 0.4 percent at 198.75 euros a tonne by 1640 GMT, having earlier hit 199.50 euros, its highest level since Jan. 8.

But the contract struggled to break technical resistance at 199 euros or test the 200-euro mark that is seen as a level discouraging buyers, dealers said, adding that volumes were very light.

"The ECB's quantative easing is a positive factor," one dealer said. "But I think the market has scope to fall as stocks remain high including in France." In the UK, however, the weakness of the euro has curtailed demand from traditional buyers in the eurozone, prompting traders to look at markets outside the region.

Sterling has strenghtened recently against the euro but failed to keep pace with a surging US dollar. "Sterling weakness against the US dollar is making UK wheat more competitive to non-EU destinations out of the deep water ports," UK grain marketer Openfield said in a market note on Friday.

May feed wheat futures in London were off 0.65 pounds or 0.5 percent at 130.60 pounds a tonne.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Fri, 23 Jan 2015 19:43:16 +0000
Copper drops for sixth week on dollar rally, China worries http://www.brecorder.com/markets/commodities/europe/219359-copper-drops-for-sixth-week-on-dollar-rally-china-worries.html http://www.brecorder.com/markets/commodities/europe/219359-copper-drops-for-sixth-week-on-dollar-rally-china-worries.html imageLONDON: Copper fell on Friday, posting its sixth straight weekly loss as it moved back towards a recent 5-1/2-year low, weighed down by a stronger dollar and concerns about the outlook for demand from top consumer China.

Three-month copper on the London Metal Exchange (LME) ended 2.74 percent lower at $5,510 a tonne. Prices hit a 5-1/2-year-low of $5,353.25 last week and are down more than 12 percent so far this year.

The metal used in power and construction posted a 3.5 percent weekly fall. The last time copper had a six-week losing streak was in mid-2012.

"We think the fall is too much. But there probably isn't any hurry (from consumers in China) to buy copper at the moment as no-one is going to be accumulating metal ahead of Chinese New Year. So that's a short-term negative for copper," said Natixis head of commodities research Nic Brown.

In China, data showed manufacturing growth stalled for the second straight month in January and companies had to cut prices at a faster clip to win new business, adding to worries about growing deflationary pressures in the economy.

The US manufacturing sector continued to expand in January but at a slightly slower pace than the month before, matching the lowest reading in a year, an industry report showed on Friday.

The dollar hit its highest since September 2003 against the euro. A strong dollar makes commodities priced in the currency more expensive for holders of other currencies.

The euro has come under strong pressure since the European Central Bank's announcement on Thursday that it would pump around 1 trillion euros into the sagging euro zone economy.

"There's a strong possibility that ECB QE (quantitative easing) could put a floor under some of these commodity prices ... when the dust settles," said analyst Joel Crane of Morgan Stanley in Melbourne.

But the copper market also has to contend with rising supplies.

Copper stocks in LME warehouses have surged by more than a quarter since the start of the year to more than 235,150 tonnes.

In other metals, nickel closed down 3.37 percent at $14,350 a tonne, lead ended at $1,846, down 2.33 percent, aluminium closed at $1,828, down 2.04 percent, zinc at $2,095, down 2.19 percent, and tin down 0.15 percent at $19,475.

Moody's Investors Service changed its outlook for the global base metals industry to negative from stable due to weaker economic growth, a drop in investor sentiment and falling copper prices.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Fri, 23 Jan 2015 19:22:15 +0000
Russia's gold reserves rise to 38.8mn troy ounces as of Jan. 1 http://www.brecorder.com/markets/commodities/europe/219071-russias-gold-reserves-rise-to-388mn-troy-ounces-as-of-jan-1.html http://www.brecorder.com/markets/commodities/europe/219071-russias-gold-reserves-rise-to-388mn-troy-ounces-as-of-jan-1.html imageMOSCOW: Russia's gold reserves rose to 38.8 million troy ounces as of Jan. 1 from 38.2 million troy ounces a month earlier, the central bank said on Thursday.

The value of its holdings rose to $46.09 billion as of Jan. 1 from $45.22 billion a month earlier, it said in a statement on its website.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Thu, 22 Jan 2015 20:23:34 +0000
EU wheat hesitant as ECB plan fuels forex swings http://www.brecorder.com/markets/commodities/europe/219052-eu-wheat-hesitant-as-ecb-plan-fuels-forex-swings.html http://www.brecorder.com/markets/commodities/europe/219052-eu-wheat-hesitant-as-ecb-plan-fuels-forex-swings.html

imagePARIS: European wheat futures were little changed on Thursday as a sharp drop in the euro after the European Central Bank unveiled a bond-buying programme boosted export prospects in Europe but dented sentiment in the US market. European futures were also facing resistance on price charts after climbing to a two-week high on Wednesday.

March milling wheat on Euronext was unchanged on the day at 197.75 euros a tonne by 1644 GMT, consolidating below its high of 199.00 euros in the previous session that was also a technical resistance level.

"A strong US dollar is bearish for commodities and a weak euro is bullish for Matif (Euronext), so they almost equal each other out," one trader said. The euro fell to an 11-year low against the dollar after the European Central Bank announced a widely expected bond-buying programme. Weekly data confirmed robust demand for EU wheat, with the bloc awarding 728,000 tonnes of soft wheat export licences, keeping the volume in 2014/15 close to last season's record pace.

The European market had already drawn support on Wednesday from news that Algeria bought up to 350,000 tonnes of milling wheat for May shipment last week in a deal expected to be sourced from France and Germany. US wheat was mixed, giving up earlier gains as the stronger dollar weighed on commodities priced in the US currency and underlined sluggish export demand.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Thu, 22 Jan 2015 19:56:36 +0000
Copper down as consumers stand back, inventories rise http://www.brecorder.com/markets/commodities/europe/219047-copper-down-as-consumers-stand-back-inventories-rise.html http://www.brecorder.com/markets/commodities/europe/219047-copper-down-as-consumers-stand-back-inventories-rise.html imageLONDON: Copper fell on Thursday as climbing inventories highlighted oversupply in the market and consumers waited for weaker prices.

Three-month copper on the London Metal Exchange (LME) closed 1.8 percent lower at $5,665 a tonne, reversing gains from the previous session when it broke above $5,800 for the first time since Jan. 13

Industrial consumers were largely standing back, waiting for prices to fall further, Robin Bhar, head of metals research at Societe Generale, said.

"We haven't really seen huge physical buying and there's been no call on inventory in terms of copper deliveries. There's still been arrivals in warehouses," he said.

LME copper inventories rose 5,925 tonnes on Thursday to 225,375 tonnes, bringing the increase this month to 27 percent.

Although prices have rebounded from the 5-1/2-year low of $5,353.25 hit last week, they are still down by around 10 percent in the year to date.

"Some players are talking of maybe $4,500 as a bottom or $5,000, but certainly a move below $5,000 is when you might see speculators, investors and consumers looking to buy," Bhar said.

Also weighing on the market was profit-taking on long positions built up ahead of Thursday's European Central Bank (ECB) quantitative easing (QE) programme.

The euro fell to an 11-year low against the dollar following the ECB announcement. A strong dollar makes commodities priced in the currency more expensive for holders of other currencies.

Copper was also under pressure from news that investment this year by the Chinese State Grid will rise 9 percent, not the 24 percent previously expected, after last year's investment figure was released on Thursday and was higher than originally reported.

Goldman Sachs said in a note on Wednesday that the impact of grid investment was overblown. Instead, copper's fortunes are far more closely tied to the country's ailing property sector, the investment bank said.

Aluminium ended 0.1 percent down at $1,866 a tonne, having earlier touched its highest level in nearly a month at $1,882.50, while zinc ended 0.1 percent higher at $2,124, having earlier touched its highest level since Jan. 12 at $2,158.50.

Lead shed 1.3 percent to close at $1,890, nickel lost 1.5 percent to end at $14,850 and tin closed 0.8 percent higher at $19,505.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Thu, 22 Jan 2015 19:50:38 +0000
European vegoils-Palm oil weakens, hurt by poor demand http://www.brecorder.com/markets/commodities/europe/219038-european-vegoils-palm-oil-weakens-hurt-by-poor-demand.html http://www.brecorder.com/markets/commodities/europe/219038-european-vegoils-palm-oil-weakens-hurt-by-poor-demand.html imageLONDON: Palm oil prices on the European vegetable oils market were lower on Thursday, weighed by poor demand and weakness in the crude oil market.

The drop in crude oil prices has helped to reduce demand from the biofuels sector while dealers also cited slow demand from key buyers such as China and India.

"The crude oil discount to palm oil is hovering around $300 a tonne, curtailing any discretionary demand for biodiesel and posing a challenge for governments looking to implement biodiesel mandates," Rabobank said in a report on Thursday.

Rabobank also said a favourable outlook for soybean crops in Latin America also continued to weigh on palm oil prices.

RBD palm olein for April/June shipment last traded at $637.50 a tonne, down $15 from Wednesday.

Other vegetable oil prices were also lower as CBOT soyoil fell by around 1.5 percent, weakened by the prospect of bumper soybean harvests in South America.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Thu, 22 Jan 2015 19:32:24 +0000