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, 27 May 2015 03:45:31 +0000SRA Framework 2.0en-gbCopper price hits three-week low as dollar rally overshadows China prospectshttp://www.brecorder.com/markets/commodities/europe/243576-copper-price-hits-three-week-low-as-dollar-rally-overshadows-china-prospects.htmlhttp://www.brecorder.com/markets/commodities/europe/243576-copper-price-hits-three-week-low-as-dollar-rally-overshadows-china-prospects.htmlimageLONDON: Copper hit a three-week low on Tuesday, as a strong dollar spurred profit-taking and overshadowed hopes that demand from top consumer China will recover, thanks in part to government stimulus measures.

China's state planning agency on Monday listed more than 1,000 proposed projects totalling 1.97 trillion yuan ($318 billion) it is inviting private investors to help fund, build and operate. Copper is used extensively in construction.

But weighing on copper, the dollar rose more than 1 percent against a currency basket, helped by upbeat US consumer confidence and durable goods data and by increasing nervousness about Greece.

A stronger dollar makes dollar-priced metals more expensive for holders of other currencies. "Fears are emerging regarding copper's recent strength.

People are saying its done too much too soon. Sellers are emerging to test recent support," a trader said.

Three-month LME copper cut early gains to close down 0.9 pct at $6,106.50 a tonne. Copper has been on a mostly upward trajectory since touching 5-1/2 year lows in January.

London Metal Exchange data showed copper stocks fell to 327,800 tonnes.

The metal was widely tipped to move into significant surplus this year, but this has yet to transpire, with LME stocks having failed to rise for the last two months.

"There was over-optimism about mine supply (this year). Physical demand has been disappointing (but) we expect it to pick up in the second half," said Caroline Bain, senior commodities economist at Capital Economics.

Nickel rallied nearly 2 percent overnight before retreating to end down 0.3 percent at $12,675 a tonne, after LME data showed nickel stocks hit a record of 463,800 tonnes.

The metal hit its lowest in about a month earlier. ANZ said three of its four bullish indicators had turned positive for nickel, including a drawdown in Chinese stores of nickel pig iron (NPI), rising ferrronickel imports and higher NPI prices, but it remained cautious on the outlook.

"If LME nickel stocks start to decline, we would have greater confidence that the market had found a bottom," the bank said. Aluminium ended down 0.9 percent at $1,752 a tonne, having hit its lowest since mid-March earlier, under pressure from rising supplies and worldwide falls in premiums or surcharges for physical metal deliveries.

Zinc ended unchanged at $2,177 a tonne, lead closed down 0.6 percent at $1,936 a tonne, while tin closed down 2.1 percent at $15,490 a tonne, having earlier hit its lowest in a month.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)EuropeTue, 26 May 2015 19:46:05 +0000
European vegoils-Palm oil rises on strong exports, soyoil gains http://www.brecorder.com/markets/commodities/europe/243569-european-vegoils-palm-oil-rises-on-strong-exports-soyoil-gains.htmlhttp://www.brecorder.com/markets/commodities/europe/243569-european-vegoils-palm-oil-rises-on-strong-exports-soyoil-gains.html

imageLONDON: Palm oil prices on Europe's vegetable oils market rose on Tuesday, boosted by the strong pace of Malaysian exports and gains in CBOT soybean oil.

Crude palm oil offers were raised by up to $10.00 per tonne while RBD palm olein asking prices were increased by $10.00 to $15.00 per tonne.

RBD palm olein for July/September shipment last traded at $630 a tonne, up $12.50, while October/December was last $15.00 higher at $627.50 a tonne.

CBOT July soyoil was up 1.3 percent at 32.06 cents a lb at 1722 GMT. Export data released from cargo surveyor Intertek Testing Services reported a 52.9 percent jump in Malaysian palm oil shipments in the first 25 days of May compared to the same period a month ago, with purchases of crude palm oil rising nearly tenfold.

Another cargo surveyor Societe Generale de Surveillance reported a 55 percent increase for the same period to 1.4 million tonnes shipped.

Coconut oil offers were raised by between $10 and $20 a tonne, boosted by gains in other vegetable oil markets, while palmkernel oil was initially offered at higher levels before sellers withdrew from the market leaving it unquoted.

EU rapeseed oil prices were increased by between 9 and 11 euros a tonne with the weakness of the European currency also contributing to the advance.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)EuropeTue, 26 May 2015 19:35:23 +0000
Sugar falls, arabicas hit lowest point since Feb 2014http://www.brecorder.com/markets/commodities/europe/243528-sugar-falls-arabicas-hit-lowest-point-since-feb-2014.htmlhttp://www.brecorder.com/markets/commodities/europe/243528-sugar-falls-arabicas-hit-lowest-point-since-feb-2014.htmlimageLONDON: Raw sugar futures hit an 8-week low on Tuesday, pressured by huge stocks and a weak Brazilian currency, while arabica coffee futures fell to the lowest level in more than a year and New York cocoa eased.

Raw sugar futures edged down due to a combination of vast inventories in some leading Asian origins, and the weak Brazilian currency which encouraged Brazilian producers to sell dollar-based sugar to lock in local currency returns.

"Technically the market would still look rather weak, which may therefore indicate that the spot July position may eventually test the previous contract lows at 12.03 cents a lb," a senior London-based broker said.

James Kirkup, head of sugar at ABN AMRO Markets, said heavy sugar stocks in India and Thailand, combined with the weak real currency, weighed on the market.

July raw sugar futures eased 0.2 cent, or 1.6 percent, to 12.11 cents a lb at 1354 GMT, after touching an eight-week low of 12.09 cents a lb.

"It seems as though, weather notwithstanding, sugar is set to test contract lows in the not too distant future," said Nick Penney, senior trader with Sucden Financial Sugar.

August white sugar traded down $4.10, or 1.2 percent, at $347.20 a tonne, after touching a contract low at $346.60.

July arabica coffee futures were down 0.95 cents, or 0.8 percent, at $1.2600 per lb, after falling to $1.251, the lowest for the spot contract since February 2014.

"On the upside, futures will look to target fresh resistance towards $1.31 a lb, while protracted moves could see gains test levels towards $1.36," said Kash Kamal, senior research analyst with Sucden Financial.

July robusta coffee was down $2, or 0.1 percent, at $1,624 a tonne.

New York cocoa eased, pressured by the stronger dollar which made dollar positions more expensive in terms of other currencies.

New York July cocoa was down $22, or 0.7 percent, at $3,131 a tonne, tumbling from Thursday's seven-month peak at $3,181. London July futures declined 5 pounds, or 0.2 percent, at 2,107 pounds per tonne.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin)EuropeTue, 26 May 2015 15:09:02 +0000
Gold drops more than 1 percent as dollar rally continueshttp://www.brecorder.com/markets/commodities/europe/243503-gold-drops-more-than-1-percent-as-dollar-rally-continues.htmlhttp://www.brecorder.com/markets/commodities/europe/243503-gold-drops-more-than-1-percent-as-dollar-rally-continues.htmlimageLONDON: Gold fell more than 1 percent on Tuesday as the dollar extended gains following stronger U.S. inflation data and comments from Federal Reserve Chair Janet Yellen that reinforced the central bank's tightening bias on monetary policy.

Spot gold dropped to a two-week low of $1,192.60 an ounce earlier and was down 1 percent at $1,193.73 by 1003 GMT.

U.S. gold futures for June delivery were down $10.40 at $1,193.60 an ounce.

The dollar continued its strong run, up 1 percent against a basket of leading currencies, after Fed Yellen said on Friday that interest rates will be raised this year as the U.S. economy was set to bounce back from an early-year slump.

"The dollar is back in vogue, it's turned after last week's strong CPI data, Yellen comments, and there should be more strong data this week," Societe Generale analyst Robin Bhar said.

"For the dollar to weaken again, you're going to need some pretty dire U.S. data and the risk is that data is going to get stronger because we are out of the winter season."

A stronger dollar makes gold more expensive for holders of other currencies, while higher U.S. interest rates would dent demand for the non-interest-paying metal, increasing the opportunity cost of holding it.

Gold's inverse correlation with the dollar has started to strengthen again, and weaken against yields, Barclays said in a note.

"We maintain the view that the third quarter is likely to be the weakest quarter for gold, given that we expect the Fed to start increasing rates in September, but the potential downside is likely to be limited," it said.

Bullion traders will be keenly eyeing U.S. economic data due later in the day, including durable goods for May and consumer confidence for April, for clues on the strength of the economy and how it would impact the Fed's monetary policy.

The focus was also on Greece, which said on Monday it needed aid urgently to be able to pay a loan instalment due next week.

Any worsening of the Greek debt crisis could potentially trigger demand for gold coins and bars. The metal is usually seen as a hedge against political and financial risk, although the impact on demand for metals from wider political worries is usually short lived.

Silver fell 2.1 percent to a two-week low of $16.70 an ounce. Platinum dropped 1.7 percent to $1,128.50 an ounce and palladium slipped 0.6 percent to $781 an ounce.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin)EuropeTue, 26 May 2015 12:14:46 +0000
Copper steady as strong dollar offsets China demand prospectshttp://www.brecorder.com/markets/commodities/europe/243498-copper-steady-as-strong-dollar-offsets-china-demand-prospects.htmlhttp://www.brecorder.com/markets/commodities/europe/243498-copper-steady-as-strong-dollar-offsets-china-demand-prospects.htmlimageLONDON: Copper steadied on Tuesday as investors weighed the negative impact of a stronger dollar against expectations that demand from top consumer China will recover in the second half, thanks in part to government stimulus measures.

China's state planning agency on Monday released a list of more than 1,000 proposed projects totalling 1.97 trillion yuan ($318 billion) it is inviting private investors to help fund, build and operate.

Also, London Metal Exchange data showed copper stocks fell to 327,800 tonnes. Copper was widely tipped to move into significant surplus this year, but this has yet to transpire, with LME stocks having failed to rise for the last two months.

"There was over-optimism about (copper) mine supply, but physical demand has been disappointing," said Caroline Bain, senior commodities economist at Capital Economics.

She added, however: "We've been looking at announcements on (China) stimulus and we expect demand to pick up in the second half. That gives us a bullish outlook. There are signs of demand picking up now."

Three-month LME copper cut early gains to trade little changed at $6,160 a tonne by 0929 GMT, partly recouping losses of more than 1.5 percent on Friday, when it plumbed its lowest since late April at $6,143.

Weighing on copper, the dollar rose 1 percent against a currency basket after U.S. Federal Reserve chair Janet Yellen on Friday quashed doubts over whether the central bank can raise rates this year.

A strong dollar makes dollar-priced metals costly for non-U.S. investors.

Elsewhere, nickel rallied nearly 2 percent before retreating after LME data showed nickel stocks hit a record of 463,800 tonnes.

ANZ said three of its four bullish indicators had turned positive for nickel, including a drawdown in Chinese stores of nickel pig iron (NPI), rising ferrronickel imports and higher NPI prices, but it remained cautious on the outlook.

"If LME nickel stocks start to decline, we would have greater confidence that the market had found a bottom, but until this occurs, the upside to nickel prices is likely to remain limited," said the bank.

Aluminium fell 0.4 percent to $1,761 a tonne, the strongest losses on the LME complex, under pressure from rising supplies and worldwide falls in premiums or surcharges for physical metal deliveries.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin)EuropeTue, 26 May 2015 12:11:05 +0000
Russian wheat prices follow global benchmarks higher http://www.brecorder.com/markets/commodities/europe/243400-russian-wheat-prices-follow-global-benchmarks-higher.htmlhttp://www.brecorder.com/markets/commodities/europe/243400-russian-wheat-prices-follow-global-benchmarks-higher.htmlimageTIKHORETSK: Russian wheat export prices rose last week following an increase in global benchmarks and concerns over dry and hot weather in the European part of Russia, analysts said.

Russia, one of the world's big wheat exporters, competes with other global suppliers, including France, where Western European wheat prices hit the highest level since mid-April last week before turning lower in holiday-quietened trade.

Black Sea forward prices for Russian new crop wheat with 12.5 percent protein content stood at $194 per tonne on a free-on-board (FOB) basis at the end of last week, up $5 from a week earlier, the IKAR agriculture consultancy said.

It quoted prices for the old wheat crop at $195 per tonne, while SovEcon consultancy quoted them at $192, up $2 from the previous week. IKAR also pegged prices for new crop maize (corn) at $165 per tonne.

"The rise of the European wheat market will likely cause the further strengthening of Russian wheat," SovEcon said in a note. Russia, a major wheat supplier to North Africa and the Middle East, exported less than 500,000 tonnes of grains, including 200,000 tonnes of wheat, in the first 20 days of May, according to IKAR.

Domestic prices for third-class wheat were up 75 roubles compared with a week earlier, at 9,250 roubles ($186) per tonne in the European part of Russia on an ex-works basis, SovEcon added.

In the domestic sunflower seed market, SovEcon said prices fell 75 roubles to 20,475 roubles per tonne, while FOB Black Sea prices for crude sunflower oil were flat at $820-840 per tonne.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)EuropeMon, 25 May 2015 19:42:42 +0000
EU wheat unchanged to slightly lower in holiday markethttp://www.brecorder.com/markets/commodities/europe/243375-eu-wheat-unchanged-to-slightly-lower-in-holiday-market.htmlhttp://www.brecorder.com/markets/commodities/europe/243375-eu-wheat-unchanged-to-slightly-lower-in-holiday-market.htmlimagePARIS: European wheat prices were unchanged to slightly lower on Monday, pressured by a broad commodities sell-off on US markets on Friday, but trade remained very light with many European countries on holiday and US markets closed.

Paris December milling wheat, the new-crop benchmark on Euronext, was unchanged by 1340 GMT at 184.00 euros a tonne in a volume of just 1,039 lots.

Front-month September was 0.25 euro, or 0.1 percent, lower.

The fall of the euro against the dollar prevented EU grain prices from following the more than 1 percent slump on US wheat futures in Chicago on Friday.

The euro fell to a one-month low of $1.0959 in European trade, with some traders citing heavy losses by Spain's ruling party in local elections as a factor. Worries that Greece cannot service debt repayments next month amid a cash crunch also weighed on the currency.

A lower euro makes euro-denominated products more attractive for export at a time when competition on international grain markets is fierce.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin)EuropeMon, 25 May 2015 14:43:03 +0000
Gold dips as Yellen comments shore up dollarhttp://www.brecorder.com/markets/commodities/europe/243358-gold-dips-as-yellen-comments-shore-up-dollar.htmlhttp://www.brecorder.com/markets/commodities/europe/243358-gold-dips-as-yellen-comments-shore-up-dollar.htmlimageLONDON: Gold prices fell slightly on Monday, as the dollar gained traction against major currency rivals, on signs the Federal Reserve is preparing to tighten monetary policy for the first time in six years in 2015.

Fed Chair Janet Yellen indicated on Friday that the U.S. central bank was poised to raise rates this year, with the world's largest economy set to bounce back from an early-2015 slump.

Higher U.S. interest rates increases the opportunity cost of holding non-yielding bullion.

Spot gold was down 0.2 percent at $1,203.46 an ounce by 1127 GMT, just above a near-two-week low of $1,201.20 hit in the previous session. It posted its biggest weekly drop in a month last week, down 1.4 percent.

Liquidity was thin with British and U.S. markets shut for holidays.

"The Fed raising the rates is certainly not electrifying news for the precious metal, which is on track to extend its biggest weekly decline since April," AvaTrade chief market analyst Naeem Aslam said.

"Yellen last week has confirmed that she is still confident that the rates will rise this year and (gold) traders are not fond of this news at all."

The prospect of higher rates later in 2015 boosted the dollar to its highest in a month against a basket of major currencies on Monday. Stronger-than-expected underlying U.S. inflation and persisting Greek debt worries also supported the greenback.

A stronger dollar makes gold more expensive for holders of other currencies, while diminishing the metal's appeal as an hedge against risk.

In the physical markets, gold demand across Asia was soft as investors channel their money towards higher-yielding stock markets.

Indian gold jewellery demand in the second half of the year could take a hit as the Hindu calendar shows the number of dates seen as being auspicious for weddings will drop 40 percent in the second half from a year earlier.

In other Asia-related news, China has established a fund that is expected to raise about $16 billion for gold-backed investment as part of its "Silk Road" initiative to develop trade and transport infrastructure across Asia and beyond, official media reported.

Silver was down 0.7 percent at $16.99 an ounce, after falling 2.2 percent last week. Platinum dropped 0.1 percent to $1,143.88 an ounce and palladium fell 0.7 percent to $774.98 an ounce.

Copyright Reuters, 2015

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imad_kueconomist@yahoo.com (Imaduddin)EuropeMon, 25 May 2015 13:03:12 +0000
Copper heads for biggest weekly drop since January, record stocks hit nickelhttp://www.brecorder.com/markets/commodities/europe/243134-copper-heads-for-biggest-weekly-drop-since-january-record-stocks-hit-nickel.htmlhttp://www.brecorder.com/markets/commodities/europe/243134-copper-heads-for-biggest-weekly-drop-since-january-record-stocks-hit-nickel.htmlimageLONDON: Copper prices fell on Friday on worries about demand in top consumer China, while nickel hit a four-week low after stocks in LME-registered warehouses climbed to a record high.

Three-month copper was untraded at the close but bid at $6,161 a tonne from $6,260 on Thursday. Earlier in the day, it touched a three-week low of $6,143.

The metal used in power and construction is down more than 3 percent so far this week, heading for its biggest weekly loss since January.

"Demand could prove to be somewhat better if the global economy recovers," said Daniel Briesemann, analyst at Commerzbank in Frankfurt.

China's imports of unwrought copper and copper alloy reached 380,000 tonnes in April, taking imports in the first four months of the year to 1.35 million tonnes, down 14.7 percent from a year ago. But the monthly import figure has increased since February.

"If Chinese consumers become comfortable with the outlook in the second half of the year, they'll move beyond restocking activity to actually (boosting) production of finished products, which would be the real kicker for demand and push prices higher," Daniel Hynes, analyst at ANZ said.

Nickel slipped 2.2 percent to $12,710 a tonne, having hit a one-month low of $12,680 earlier in the day. Nickel stocks rose 8,922 tonnes to a record 446,868 tonnes. Prices of the metal, used in stainless steel, are down more than 8 percent for the week, heading for their biggest weekly fall since September 2011.

"Stocks and spreads are telling a similar story. There is no shortage of nickel, not yet anyway, and unlikely to be for a long time," a nickel trader said. The discount for the cash contract over the three-month future at around $43 a tonne is up from near $30 late April. Aluminium edged 0.3 percent lower to $1,768 a tonne.

The metal used in transport and packaging has come under pressure from oversupply and earlier fell to $1,757, its lowest since mid-April.

Lead dropped 1.3 percent to $1,947 and zinc 0.6 percent to $2,177.

Tin remained unchanged from Thursday's close at $15,825 a tonne.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)EuropeFri, 22 May 2015 16:26:32 +0000
First copper from Congo-China deal due by year endhttp://www.brecorder.com/markets/commodities/europe/243044-first-copper-from-congo-china-deal-due-by-year-end.htmlhttp://www.brecorder.com/markets/commodities/europe/243044-first-copper-from-congo-china-deal-due-by-year-end.html

imageKINSHASA: A joint venture between Democratic Republic of Congo's state miner and two Chinese companies, signed under a 2009 "minerals for infrastructure" deal, will begin producing copper before the end of 2015, Congo's government said on Thursday.

Under the deal Chinese companies pledged to build $3 billion worth of roads, railways, schools, and hospitals in return for a 68 percent stake in a joint venture operating copper plants with state miner Gecamines in the southern Katanga province.

The Chinese firms involved in the Sicomines joint venture are Sinohydro Corp and China Railway Group Limited.

The Congolese government office charged with overseeing implementation of the deal said copper output would begin "in the fall of 2015" at a rate of 50,000 tonnes per year, rising to an expected 400,000 tonnes per year over the next two decades.

"This mutually beneficial cooperation with our Chinese partners is a strong example for others interested in investment opportunities in (Congo)," Mo?se Ekanga, executive secretary of the office, said in a statement.

An original $9 billion deal signed in 2007 was reduced to about $6 billion after the International Monetary Fund (IMF) objected to the amount of debt Congo was taking on. Ekanga led a tour of the Sicomines plants taken last weekend by the IMF's resident representative in Congo, the World Bank's country director and several foreign diplomats.

Congo, which vies with Zambia to be Africa's top copper producer, extracted more than 1 million tonnes of the metal for the first time in 2014.

The mining sector helped power economic growth of 9.5 percent in 2014, according to the government.

However, after two decades of armed conflict, Congo still ranks 186 out of 187 countries in the UN Human Development Index.

The government has predicted 10.3 percent growth for 2015.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)EuropeThu, 21 May 2015 19:35:53 +0000