EuropeStay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder..http://www.brecorder.com/markets/commodities/europe.htmlWed, 01 Apr 2015 00:56:57 +0000SRA Framework 2.0en-gbEU wheat falls in tandem with Chicago after USDA reporthttp://www.brecorder.com/markets/commodities/europe/236057-eu-wheat-falls-in-tandem-with-chicago-after-usda-report.htmlhttp://www.brecorder.com/markets/commodities/europe/236057-eu-wheat-falls-in-tandem-with-chicago-after-usda-report.htmlimagePARIS: European wheat futures tracked US grain markets lower on Tuesday after they were hit by the release of a US government report perceived as bearish for corn.

US farmers were seen cutting corn plantings by less than expected in 2015 even as supplies ballooned to the highest since 1987, US government data showed on Tuesday.

The USDA also pegged corn stocks as of March 1 at 7.745 billion bushels, the second highest ever for that time of year and 136 million bushels above the average of market forecasts.

Corn futures on the Chicago Board of Trade tumbled more than 3 percent after the closely watched report was released and wheat followed, on both US and European markets.

Euronext May milling wheat, on the main No. 2 contract, closed 2 percent lower at 187.50 euros a tonne.

"We are falling in sympathy with corn. The report is neutral for wheat, both for plantings and stocks," one trader said.

German cash wheat premiums in Hamburg were boosted by the euro's weakness in thin morning trade ahead of the USDA report.

Standard wheat with 12 percent protein content for delivery in Hamburg in April was offered for sale at 1 euro over the Paris May contract against level Paris on Monday. Buyers were offering level Paris.

Copyright Reuters, 2015

]]>
s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)EuropeTue, 31 Mar 2015 22:04:18 +0000
Sugar recovers from lowest since 2009, cocoa steadyhttp://www.brecorder.com/markets/commodities/europe/235947-sugar-recovers-from-lowest-since-2009-cocoa-steady.htmlhttp://www.brecorder.com/markets/commodities/europe/235947-sugar-recovers-from-lowest-since-2009-cocoa-steady.htmlimageLONDON: Raw sugar on ICE recovered on Tuesday from the lowest level in more than six years, while cocoa traded around seven-week lows, weighed by favourable weather before the start of West African mid crops.

Activity in the second day of trading of two new euro-based cocoa contracts was again quiet.

Arabica coffee futures corrected higher after a four percent fall on chart-based pressure in the prior session.

Raw sugar futures on ICE fell to 11.91 cents a lb in early trading, the lowest level since January 2009, and later gained ground to trade up 0.09 cents or 0.8 percent at 12.08 cents a lb at 1311 GMT.

Nick Penney, a senior trader with Sucden Financial, said a firmer dollar capped sugar futures prices.

"The macro picture does not favour commodities in general as a strong dollar piles on export pressure and encourages production," Penney said.

May white sugar traded up $0.70, or 0.2 percent, at $358.20 a tonne.

Cocoa dealers said favourable weather in West African growing regions augured well for mid crops, capping prices.

New York May cocoa was up $3, or 0.1 percent, at $2,698 a tonne in volume of 6,770 lots.

London May cocoa was down 6 pounds, or 0.3 percent, at 1,897 pounds a tonne in volume of 4,386 lots.

In the new CME and ICE euro-based cocoa contracts, which launched on Monday, trade of the first 15 lots opened in the ICE contract on Tuesday after no trades the previous day.

In the new CME contract, 40 lots traded on Tuesday, after trading volumes of 240 lots on Monday.

"So far it's 1-0 to the CME, but there is a long way to go," one London-based cocoa futures dealer said.

"CME has to maintain that (Monday's) volume. It's struggling already."

May arabica was up 1.75 cents, or 1.3 percent, at $1.3410 per lb.

"Trading volumes have dropped in recent sessions as the market looks for direction and on the downside, further selling pressure could now test support towards $1.33 (a lb)," said Kash Kamal, senior research analyst with Sucden Financial.

May robusta coffee traded down $3, or 0.2 percent, at $1,719 a tonne.

Copyright Reuters, 2015

]]>
imad_kueconomist@yahoo.com (Imaduddin)EuropeTue, 31 Mar 2015 15:16:01 +0000
Gold rebounds on shares, still set for 2nd monthly fallhttp://www.brecorder.com/markets/commodities/europe/235930-gold-rebounds-on-shares-still-set-for-2nd-monthly-fall.htmlhttp://www.brecorder.com/markets/commodities/europe/235930-gold-rebounds-on-shares-still-set-for-2nd-monthly-fall.htmlimageLONDON: Gold rebounded on Tuesday as global share markets dropped, but bullion was still heading for its second monthly fall, pressured by a strong dollar and expectations the U.S. Federal Reserve will increase interest rates this year.

Gold has fallen 2.5 percent since hitting a three-week high above $1,200 an ounce last week after Federal Reserve Chair Janet Yellen on Friday signalled a rate hike could be likely later this year.

Yellen's remarks on sustained gains in the U.S. economy halted a seven-day rally in bullion -- the longest rising streak since 2012 -- which had been spurred by hopes the Fed would take it slow in raising rates.

"Yellen has managed to do a balancing act at the end of the last Fed meeting, on one hand removing the patience language, on the other giving the impression that rates would rise at a more sedate pace than the market initially expected," Natixis analyst Nic Brown said.

"Our best case scenario is a June rate hike and in the interim there is certainly scope for more weakness in gold."

Spot gold, lower initially, rose 0.2 percent at $1,188.60 an ounce by 1432 GMT, while U.S. gold for April delivery was up 0.3 percent at $1,188.50 an ounce.

Spot prices have lost 2 percent so far in March but Tuesday's rebound helped to snap a quarterly loss - the metal was eyeing its first rise in three quarters by just 0.4 percent.

The dollar was on track for its strongest quarter since 2008 against a basket of major currencies, boosted as the Fed moves towards raising rates while most other major central banks are loosening monetary policy.

Any hike by the Fed, which has kept rates near zero since 2008 to stimulate the U.S. economy, could further reduce demand for assets perceived as safer such as gold. A firmer dollar also makes gold more expensive for holders of other currencies and typically erodes its appeal.

Investors were awaiting U.S. jobs data on Friday, with a robust report likely to increase the chances that policymakers could raise U.S. rates sooner than later.

Economists polled by Reuters forecast a 245,000-gain in U.S. jobs in March. U.S. jobs increased by 295,000 in February, marking the 12th straight month that employment gains have been above 200,000 -- the longest such run since 1994.

In other precious metals, spot palladium fell to a new 13-month low of $721.50 on Tuesday, before rebounding slightly to trade up 0.7 percent at $730.75 an ounce.

Spot silver rose 0.5 percent to $16.76 an ounce, while platinum gained 1.8 percent to $1,135.74 an ounce.

Copyright Reuters, 2015

]]>
imad_kueconomist@yahoo.com (Imaduddin)EuropeTue, 31 Mar 2015 14:57:57 +0000
Gold eyes 3rd quarterly loss as expected US rate hike dragshttp://www.brecorder.com/markets/commodities/europe/235868-gold-eyes-3rd-quarterly-loss-as-expected-us-rate-hike-drags.htmlhttp://www.brecorder.com/markets/commodities/europe/235868-gold-eyes-3rd-quarterly-loss-as-expected-us-rate-hike-drags.htmlimageLONDON: Gold fell on Tuesday and was heading for a third straight quarterly fall, pressured by a strong dollar and expectations the U.S. Federal Reserve will increase interest rates this year.

Bullion has fallen 3 percent since hitting a three-week high above $1,200 an ounce last week after Federal Reserve Chairwoman Janet Yellen on Friday signalled a rate hike could be likely later this year.

Yellen's remarks on sustained gains in the U.S. economy halted a 7-day rally in bullion -- the longest winning streak since 2012 -- which had been spurred by hopes the Fed would take it slow in raising rates.

"We've always said that at some point everyone is going to expect a rate rise, so the impact should start being more and more priced in," Macquarie analyst Matthew Turner said.

"But Yellen has made it quite clear that the rate rises are going to be conditional on economic performance and ... she's kept the guessing game going."

Spot gold was down 0.5 percent at $1,179.61 an ounce by 0904 GMT, while U.S. gold for April delivery edged down 0.4 percent to $1,179.80 an ounce.

Spot prices have lost 2.5 percent so far in March and were heading for a second month of losses.

The dollar was on track for its best quarter since 2008 against a basket of major currencies, boosted as the Fed moves towards raising rates while most other major central banks are loosening monetary policy.

Any hike by the Fed, which has kept rates near zero since 2008 to stimulate the U.S. economy, could further reduce demand for assets perceived as safer such as gold. A stronger dollar also makes gold more expensive for holders of other currencies and typically erodes its appeal.

Investors were awaiting U.S. jobs data on Friday, with a robust report likely to increase chances policymakers could raise U.S. rates sooner than later.

Economists polled by Reuters forecast a 245,000-gain in U.S. jobs in March. U.S. jobs increased by 295,000 in February, marking the 12th straight month that employment gains have been above 200,000 -- the longest such run since 1994.

But outside the labour market, there were still signs that the U.S. economy hit a soft patch in the first quarter.

In other precious metals, spot palladium climbed 1.1 percent to $733.98 an ounce, after dropping to a 13-month low of $721.98 on Monday.

Spot silver fell 0.9 percent to $16.51 an ounce, while platinum rose 0.7 percent to $1,123 an ounce.

Copyright Reuters, 2015

]]>
imad_kueconomist@yahoo.com (Imaduddin)EuropeTue, 31 Mar 2015 12:34:23 +0000
Nickel near 6-year low on doubts supply will tightenhttp://www.brecorder.com/markets/commodities/europe/235850-nickel-near-6-year-low-on-doubts-supply-will-tighten.htmlhttp://www.brecorder.com/markets/commodities/europe/235850-nickel-near-6-year-low-on-doubts-supply-will-tighten.htmlimageLONDON: Nickel plunged to near a six-year low on Tuesday on worries over record stockpiles, weak demand for stainless steel and growing doubts over the fate of Indonesia's ore export ban that many believed would tighten the market.

Nickel prices have nearly halved since hitting two-year highs above $21,000 last May after Indonesia - previously the world's top exporter of nickel ore - last year banned all unprocessed ore exports.

The ban was expected to lead to a supply crunch in top consumer China, and could yet do so, but for now, bullish investors are losing their nerve, especially with nickel stocks at record levels.

"I think there are some players in the market who think Indonesia is going to ease or relax its ban on exports of ore. I'm not at all convinced (but) if there were any relaxation, the whole bull story for nickel collapses," said BNP Paribas strategist Stephen Briggs.

Three-month nickel on the London Metal Exchange extended a selloff to $12,400, its weakest since May 2009. The metal, used widely in stainless steelmaking, later pared losses to trade at $12,635 a tonne by 1051 GMT, down 2 percent for the day and nearly 10 percent for the month.

LME stocks are sitting at a record above 430,000 tonnes, equivalent to almost three months of global use.

Traders said selling by momentum-based CTA (commodity trade advisor) funds had driven the powerful selloff, before some arbitrage opportunities between LME and Shanghai nickel helped prices recover.

In other metals, bellwether LME copper slipped by 1 percent to $6,021.50 a tonne after hitting its lowest in more than a week earlier at $6,007.

The strong dollar, on track for its best quarter since 2008, weighed on copper and other metals in European trading hours by making them costlier for all non-U.S. investors.

Also a concern was weak demand from China, where the government is trying to shore up the ailing property market by announcing on Monday a bigger tax break for home buyers for the second time in six months.

In other metals, aluminium fell 0.6 percent to $1,786 a tonne while tin fell 2 percent to $16,710, having earlier hit $16,680 - its lowest since June 2010, under pressure from concerns about swollen supplies.

Aluminium maker Alcoa Inc said on Monday it will shut its only remaining smelter in Brazil, the latest victim of a mix of weak metal prices and high energy costs.

Copyright Reuters, 2015

]]>
imad_kueconomist@yahoo.com (Imaduddin)EuropeTue, 31 Mar 2015 12:13:54 +0000
Record supply batters nickel to near six-year lowhttp://www.brecorder.com/markets/commodities/europe/235842-record-supply-batters-nickel-to-near-six-year-low.htmlhttp://www.brecorder.com/markets/commodities/europe/235842-record-supply-batters-nickel-to-near-six-year-low.htmlimageLONDON: Nickel extended recent hefty losses on Tuesday, sliding to near six-year lows under $13,000 a tonne and putting the metal on course to end March down almost 10 percent, as record supply and weak stainless steel demand pummelled prices.

Nickel has almost halved in value since hitting two-year highs above $21,000 last May, as an expected supply crunch in China failed to materialise while LME stocks hit record highs.

While the market has concentrated heavily on the supply scenario, Nic Brown, head of commodities research at Natixis, said demand was also a major concern.

"We've looked at what's going on in the Chinese carbon steel market and while steel and stainless steel are fundamentally different, there's a significant concern that what is happening in the steel market in China may have very similar parallels for stainless steel and therefore Chinese demand for nickel."

"If demand was constant (in the nickel market) and supply was being affected in the way that people have analysed, you should have seen the nickel market moving into deficit and that simply hasn't happened," he added.

Three-month nickel on the London Metal Exchange extended a selloff to $12,400, its weakest since May 2009 in Asian trade. It later pared losses to $12,600 by 1031 GMT -- down over nine percent for the month and almost 16 percent for the year to date.

LME stocks are sitting at records above 430,000 tonnes, equivalent to almost three months of global use.

Traders said selling by momentum-based CTA (commodity trade advisor) funds had driven the powerful selloff.

"We haven't seen large activity going on by either local trading house or the funds," said a source in Shanghai.

Russia's Norilsk Nickel, the world's second-largest nickel producer, said its 2014 core earnings rose 35 percent year-on-year to $5.7 billion, beating forecasts. .

In other metals, LME copper lost 1.2 percent to $6,008.50 a tonne after early gains of around half a percent.

A drop off in China's property sector has hurt demand for metals such as for copper and nickel.

China on Monday courted home buyers with a bigger tax break as it cut down payment requirements for the second time in six months, stepping up a fight against sliding house prices.

Aluminium slipped 0.6 percent to $1,786.50, while tin fell 1.7 percent to $16,760. Zinc lost 1.1 percent to $2,086.50, while battery material lead was at $1,800, down 1.4 percent.

Copyright Reuters, 2015

]]>
imad_kueconomist@yahoo.com (Imaduddin)EuropeTue, 31 Mar 2015 12:01:07 +0000
EU wheat rises after Chicago jumps on dry weather concernshttp://www.brecorder.com/markets/commodities/europe/235644-eu-wheat-rises-after-chicago-jumps-on-dry-weather-concerns.htmlhttp://www.brecorder.com/markets/commodities/europe/235644-eu-wheat-rises-after-chicago-jumps-on-dry-weather-concerns.htmlimagePARIS: European wheat futures rose on Monday, supported by a rise on US markets where concern is mounting that dry weather in parts of US grain belt may curb yields of the hard red winter crop.

May milling wheat, the benchmark on Euronext's main No. 2 wheat contract, was 1.5 percent higher at 191.50 euros a tonne by 1557 GMT.

In Chicago May wheat was 3.8 percent higher at $5.27 a bushel.

The market is also eyeing the USDA's prospective plantings report on Tuesday, which is likely to show farmers in the United States boosting soybean sowings at the expense of corn acres this spring, a Reuters poll showed.

"It's clearly the US market that set the tone today with position covering ahead of Tuesday's report and an uncertainty premium due to the lack of rain in some areas of the US Plains," a Euronext trader said.

"This allowed the return of some volatility on Euronext, which has been lacking some for a long time."

The European Commission lowered its forecast for soft wheat stocks at the end of the 2015/2016 season due to higher consumption by animal feed makers who would also use less maize than initially estimated.

In Russia, major grain traders are delaying signing forward deals for new crop wheat, usually set at this time of the season, due to the risk that a wheat export tax could be extended, exporters and analysts said.

GERMANY

German cash wheat premiums in Hamburg were weaker in thin demand despite a brisk German wheat export programme.

Standard wheat with 12 percent protein content for delivery in Hamburg in April was offered for sale at level the Paris May contract against 1 euro over on Friday. Buyers were offering 1 euro under Paris.

"There is a noticeable lack of demand today with market participants holding back ahead of the important USDA sowings forecasts for the United States to be published on Tuesday," one German trader said.

"Concern is growing that the large port wheat export programme could restrict the time window available for new export sales if loading delays drag on into April," he said, pointing to repeated talk of delays to ship loading because of large volumes.

"Low oil prices could also restrict purchasing by the main Middle Eastern importers in coming weeks."

Copyright Reuters, 2015

]]>
imad_kueconomist@yahoo.com (Imaduddin)EuropeMon, 30 Mar 2015 16:21:46 +0000
Gold falls 1pc on strong dollar, Fed's Yellen rate hike commenthttp://www.brecorder.com/markets/commodities/europe/235610-gold-falls-1pc-on-strong-dollar-feds-yellen-rate-hike-comment.htmlhttp://www.brecorder.com/markets/commodities/europe/235610-gold-falls-1pc-on-strong-dollar-feds-yellen-rate-hike-comment.htmlimageLONDON: Gold fell more than one percent on Monday, as the dollar climbed on increasing prospects that the Federal Reserve may start raising interest rates gradually this year.

Chairwoman Janet Yellen said on Friday an increase in the Fed's benchmark rate "may well be warranted later this year" given sustained improvement in U.S. economic conditions.

"It seems the market is once again focusing on the Fed raising rates," Deutsche Boerse's MNI senior analyst Tony Walters said.

Gold, which does not pay any interest, has benefited from a low interest rates environment and central banks' accommodative policies in the years following the 2008-2009 credit crunch.

Spot gold fell as much as 1.4 percent to a one-week low of $1,182.17 an ounce, slightly cutting losses to trade down 1.1 percent at $1,185 by 1233 GMT.

U.S. gold futures for April delivery dropped 1.3 percent to $1,184.20 per ounce.

Any hike by the Fed, which has kept rates near zero since 2008 to stimulate the U.S. economy, could further reduce demand for assets perceived as safer such as gold. A stronger dollar also makes gold more expensive for holders of other currencies and typically erodes its appeal.

"On the downside, the initial support level stands at $1,182 and then nothing stands out until $1,143," Walters added.

The metal had risen for seven consecutive sessions, touching its highest since March 2 at $1,219.40 on Thursday, reacting to a Fed March policy statement that was perceived as more dovish than expected.

It was headed for a second consecutive monthly drop in March.

U.S. jobs data on Friday will be a major event this week and a robust report could see investors position for tighter monetary policy sooner rather than later.

But analysts agree that the Fed will be anything but aggressive in its rate hike path, with many looking at the first rate increase happening in September instead of June as they predicted earlier.

"Given falling oil prices and slowing growth globally they cannot afford to raise rates too early so I think the first rate hike will happen in September," said Lee at Phillip Futures.

Hedge funds and money managers slashed their bullish bet in gold for the eighth straight week, data showed on Friday.

Investors were also keeping an eye on tensions in Yemen, which aided gold's climb last week, and uncertainty over Greece's debt talks.

Gold is usually seen as an insurance against risk.

Spot silver fell 1.5 percent to $16.67 an ounce, while platinum was dropped 1.1 percent to $1,123.49 an ounce and palladium was down 0.4 percent at $734.98 an ounce.

Copyright Reuters, 2015

]]>
imad_kueconomist@yahoo.com (Imaduddin)EuropeMon, 30 Mar 2015 14:46:03 +0000
Sugar hits lowest in more than 6 years on ample supplieshttp://www.brecorder.com/markets/commodities/europe/235603-sugar-hits-lowest-in-more-than-6-years-on-ample-supplies.htmlhttp://www.brecorder.com/markets/commodities/europe/235603-sugar-hits-lowest-in-more-than-6-years-on-ample-supplies.htmlimageLONDON: Raw sugar on ICE steadied after dipping to its lowest in more than six years on Monday on the back of abundant supplies, while cocoa eased with traders noting a quiet start for new euro-based CME and ICE contracts.

Arabica coffee futures edged down, capped by a firmer dollar against a basket of currencies.

ICE raw sugar futures steadied, with upside limited by the firm dollar which makes the sweetener more expensive in other currencies, and by ample supplies.

The weak Brazilian real currency has weighed on sugar futures prices by encouraging producers in No. 1 grower Brazil to lock in returns from dollar-denominated sugar sales in local currency.

"This market seems to be battling a reality that the real is very low, and a perception it could fall further," said Tom McNeill, director of Green Pool Commodities. "At the minute, that seems like the only story in town."

Raw sugar fell to a session low of 12.00 cents a lb, the lowest since January 2009, and then recovered a little ground to trade at 12.19 cents, up 0.06 cent or 0.5 percent at 1318 GMT.

May white sugar was up $1.70 or 0.5 percent at $361.70 a tonne, after hitting a contract low of $358.50.

Speculators boosted a net short position in raw sugar contracts on ICE Futures U.S. in the week ended March 24 to a near two-year high, as they again upped a bearish bet in arabica coffee, U.S. Commodity Futures Trading Commission data showed on Friday.

Cocoa futures held steady in light volumes, with a quiet start to the new CME and ICE contracts.

Eighty seven lots were traded in the CME contract, in July, December and March 2016 months, as of 1312 GMT, and zero in the ICE euro-based contract.

"The new contracts have been a distraction in trading today. It will be interesting to see if that distraction grows or diminishes," said Jonathan Parkman, joint head of agriculture at Marex Financial.

New York May cocoa was down $12 or 0.4 percent at $2,732 a tonne.

London May cocoa edged down 2 pounds, or 0.1 percent, to 1,919 pounds a tonne.

Arabica coffee futures inched down, pressured by the firmer dollar.

May arabica was down 1.05 cents, or 0.8 percent, at $1.3710 per lb.

May robusta coffee traded down $16, or 0.9 percent, at $1,772 a tonne.

Copyright Reuters, 2015

]]>
imad_kueconomist@yahoo.com (Imaduddin)EuropeMon, 30 Mar 2015 14:35:27 +0000
Gold drops on strong dollar, Fed's Yellen rate hike commenthttp://www.brecorder.com/markets/commodities/europe/235591-gold-drops-on-strong-dollar-feds-yellen-rate-hike-comment.htmlhttp://www.brecorder.com/markets/commodities/europe/235591-gold-drops-on-strong-dollar-feds-yellen-rate-hike-comment.htmlimageLONDON: Gold fell more than 1 percent on Monday as the dollar climbed on increasing prospects that the Federal Reserve may start raising interest rates this year.

Chairwoman Janet Yellen said on Friday an increase in the Fed's benchmark rate "may well be warranted later this year" given sustained improvement in U.S. economic conditions.

Gold, which does not pay any interest, has benefited from a low interest rates environment and central banks' accommodative policies in the years following the 2008-2009 credit crunch.

Spot gold fell as much as 1.4 percent to a one-week low of $1,182.05 an ounce, slightly cutting losses to trade down 1 percent at $1,187 by 1410 GMT.

U.S. gold futures for April delivery dropped 1.1 percent to $1,186.50 per ounce.

Any hike by the Fed, which has kept rates near zero since 2008 to stimulate the U.S. economy, could further reduce demand for assets perceived as safer such as gold. A stronger dollar also makes gold more expensive for holders of other currencies and typically erodes its appeal.

"On the downside, the initial support level stands at $1,182 and then nothing stands out until $1,143," Deutsche Boerse's MNI senior analyst Tony Walters said.

The metal had risen for seven consecutive sessions, touching its highest since March 2 at $1,219.40 on Thursday, reacting to a Fed March policy statement that was perceived as more dovish than expected.

It was headed for a second consecutive monthly drop in March.

U.S. jobs data on Friday will be a major event this week and a robust report could see investors position for tighter monetary policy sooner rather than later.

But analysts agree that the Fed will be anything but aggressive in its rate hike path, with many looking at the first rate increase happening in September instead of June as they predicted earlier.

Hedge funds and money managers slashed their bullish bet in gold for the eighth straight week, data showed on Friday.

Investors were also keeping an eye on tensions in Yemen, which aided gold's climb last week, and uncertainty over Greece's debt talks.

Gold is usually seen as an insurance against risk.

"There has been a turnaround in sentiment from last week, when you had the Yemen story, some dollar weakness and lower yields but as soon as that sentiment improved, you saw pressure on precious metals," ABN Amro analyst Georgette Boele said.

Spot silver fell 1.1 percent to $16.74 an ounce, while platinum dropped 1.5 percent to $1,118.88 an ounce and palladium was down 0.8 percent at $733.50 an ounce.

Copyright Reuters, 2015

]]>
imad_kueconomist@yahoo.com (Imaduddin)EuropeMon, 30 Mar 2015 14:21:15 +0000