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COLUMN: Low-key corn futures belie active options: Maguire CHICAGO, Jan 9 (Reuters) - Corn futures may appear to be lacking conviction lately as both nearby and deferred contracts shuffle mainly sideways in low-key trade ahead of the upcoming U.S. Department of Agriculture production and stocks report due on Jan. 12.
But judging by the steady climb in open interest in both put and call options in recent weeks, traders expect prices to snap their recent bout of sideways trade before long. The problem is, options activity suggests traders are equally split along bullish and bearish lines, so it remains a guessing game as to which way this market will ultimately break. Oil speculators stay cautious on Iran risk: John Kemp --John Kemp is a Reuters market analyst. The views expressed are his own--
LONDON, Jan 9 (Reuters) - Escalating tensions between Iran and the West have so far drawn only a small amount of extra speculative money into oil-linked futures and options contracts.
Far fewer hedge funds and other money managers are wagering on a big price increase than after the Libyan civil war last year, according to position data released by the U.S. Commodity Futures Trading Commission (CFTC) and exchanges.
ENERGY: Brent firm on Iran's threats but mood cautious
SINGAPORE, Jan 10 (Reuters) - Brent crude rose above $112.50 as tension over Iran's nuclear programme ratcheted up and on unrest in Nigeria, but gains are being capped by persistent worries about the strength of European economies after weak German data.
"Despite demand conditions being relatively weak, oil prices are still above $100 because of the geopolitical tensions. There is a floor on prices at the moment," said Natalie Robertson of ANZ.
S.Korea KOGAS says Dec domestic gas sales up 2.1 pct y/y
SEOUL, Jan 10 (Reuters) - South Korea's state-run Korea Gas Corp (KOGAS) said on Tuesday it had sold gas equivalent to 4.177 million tonnes of liquefied natural gas (LNG) domestically in December, up 2.1 percent from a year earlier.
The amount was equivalent to 184.98 billion cubic feet of natural gas.
China's Dec crude imports up 5 pct on yr, off Nov peak
BEIJING, Jan 10 (Reuters) - China's crude oil imports in December rose five percent from a year earlier to 5.16 million barrels per day (bpd), easing off from November when imports hit their second-highest on record, preliminary customs data showed.
For the whole year, China brought in 253.78 million tonnes of crude oil, or about 5.08 million bpd, an increase of 6 percent over 2010.
Nigeria faces second day of strikes over fuel
ABUJA, Jan 10 (Reuters) - Nigerian unions begin a second day of nationwide strikes on Tuesday to protest against the removal of fuel subsidies, as President Goodluck Jonathan and workers remain in deadlock after three people were killed in the first day of demonstrations.
Nigeria's fuel regulator announced on Jan. 1 that subsidies on imports of motor fuel would end immediately, more than doubling the price of petrol to about 150 naira ($0.93) a litre and sparking protests across the country.
UAE delays oil pipeline to bypass Hormuz
ABU DHABI, Jan 9 (Reuters) - The United Arab Emirates has delayed the launch of a crucial oil pipeline to bypass the Straits of Hormuz to mid-2012, which analysts said would add to supply worries at a time when Iran threatens to block the strait for all the Gulf's oil.
Oil prices have remained elevated in recent weeks as Iran has threatened to block the strait should the West impose tougher sanctions on its oil industry as part of a standoff over Tehran's nuclear programme.
AGRICULTURE: U.S. corn up for 2nd day, soy dips after rally
SINGAPORE, Jan 10 (Reuters) - U.S. corn rose for a second straight session and soybeans ticked lower after a 3 percent rally as hotter weather in key exporters Argentina and Brazil raised the spectre of supply shotfall.
"Corn is little firm but we don't expect a lot of action from now until the USDA report," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne.
Mexico coffee exports rise 22.5 pct in Dec yr/yr
Jan 9 (Reuters) - Coffee exports from Mexico reached 163,190 60-kg bags in December, up 22.5 percent from the same month in 2010, Mexico's national coffee association said on Monday.
Guatemala's coffee exports fell 2 percent to 177,303 bags in December, Guatemala's coffee organization Anacafe said in a separate report.
Argentine grains to get rain, but will it be enough?
BUENOS AIRES, Jan 9 (Reuters) - Rain showers are expected in Argentina's main farm areas this week, but climatologists question whether the amount of water to hit the drought-stricken Pampas will be enough to revive key corn and soy crops.
Grain-exporting powerhouse Argentina has been hit by an unforgiving southern hemisphere summer sun, prompting analysts to cut their crop forecasts and fueling farmers' demands for tax cuts to help them get through the season.
Brazil to estimate 2012 coffee crop on Tuesday
BRASILIA, Jan 9 (Reuters) - The government of world top coffee grower Brazil will make its first official estimate of the 2012 harvest on Tuesday, a crop which got off to a shaky start due to harmfully dry weather on top of a rare bout of frost.
The 2012/13 coffee crop comes in a higher-output 'on year' in the biennial production cycle which makes output fairly certain to rise from last year's officially-estimated 43.5 million 60-kg bag harvest.
Rains head for dry Brazil grain, analyst cuts view
BRASILIA, Jan 9 (Reuters) - Scattered showers will reach parts of Brazil's drought-hit southern grain belt over the next 10 days, forecaster Somar said on Monday, though precipitation should be low in areas now losing production due to the lack of moisture.
No. 3 soy state Rio Grande do Sul in the far south
Lack of rain hits Ivorian cocoa crop
ABIDJAN, Jan 9 (Reuters) - Dry and windy weather continued last week in most of Ivory Coast's cocoa growing regions, reinforcing expectations of a weak tail-end of the main crop and a soft start to the mid-crop, farmers said on Monday.
Cocoa arrivals to the top grower nation's two ports have already started slowing down, according to exporters, with cumulative figures since the start of the season in October seen 3.5 percent below a year ago.
BASE METALS: LME copper gains, China data supports; Europe eyed
KUALA LUMPUR, Jan 10 (Reuters) - London copper edged up, rebounding slightly from a drop in the previous session, as data showing a rise in imports by the top consumer China supported prices, but concerns over the euro zone debt crisis kept a lid on gains.
"Easing credit conditions could be driving greater willingness to restock and the arbitrage window opened up in the latter part of 2011," said Nick Trevethan, senior commodities strategist at ANZ Research in Singapore. China Dec iron ore imports down 0.2 pct -customs
BEIJING, Jan 10 (Reuters) - China imported 64.09 million tonnes of iron ore in December, down just 0.2 percent from a 10-month high in November, data from the country's customs authority showed on Tuesday.
Imports remained resilient over the month in the face of declining steel prices and uncertainties about demand in the new year, with traders continuing to rebuild stockpiles.
Alcoa posts loss; gives positive aluminum outlook
Jan 9 (Reuters) - Alcoa Inc posted a fourth quarter loss due to a steep plunge in aluminum prices, but its revenue beat expectations and the company gave a positive outlook for global demand for the metal, especially in the aerospace and automotive markets.
The largest U.S. aluminum producer forecast 7 percent growth in global aluminum demand this year and said cutbacks in production will result in a global supply deficit of 600,000 tonnes in 2012.
Alcoa to cut high-cost European smelter output
NEW YORK, Jan 9 (Reuters) - Alcoa Inc said on Monday it plans to close its Portovesme, Italy, smelter and slash output at two Spanish smelters as the U.S. aluminum producer takes aim at its high-cost European operations.
The measures will throw doubt on the long-term future of the U.S. producer's embattled European operations as they struggle with high energy costs and low aluminum prices.
Heavy rains hit some Vale operations in Brazil
RIO DE JANEIRO, Jan 9 (Reuters) - Heavy rains forced the world's top iron ore exporter Vale to temporarily halt extraction at some mines in Brazil's most important ore-producing state, the company said on Monday.
A Vale spokesperson said the "occasional" shutdowns in the state of Minas Gerais have not affected iron ore exports or the company's production goal for the year.
STEEL NEWS: EU steel lobby files subsidy complaint against China
BRUSSELS, Jan 9 (Reuters) - European steel producers' lobby Eurofer said on Monday it has filed an anti-subsidy complaint against Chinese state support for exports of organic-coated steel (OCS) to Europe, adding to an existing anti-dumping investigation by European authorities. The steel lobby said it had evidence of a wide range of government incentives for Chinese steel production, including preferential loans, tax schemes, interest rates and grants for OCS, which were hurting the EU's already shrinking sector.
PRECIOUS METALS: Gold edges up; euro zone concerns remain
SINGAPORE, Jan 10 (Reuters) - Gold prices edged higher after two straight sessions of losses, supported by a steady euro ahead of key bond auctions in the euro zone this week while sentiment remained fickle over the region's fiscal prospects.
"The sentiment is neutral in the market," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong. "People are waiting on the side waiting for developments out of the euro zone." GLOBAL MARKETS: Shares, euro rise; Europe worries weigh
TOKYO, Jan 10 (Reuters) - Asian shares and the euro rose, but concerns over funding of euro zone sovereigns ahead of key auctions this week and of the debt crisis spilling into the wider financial system kept investors cautious about taking riskier positions.
"It's very hard to make a clear prediction until we start to see the shape of Europe," he said.
CHART OF THE DAY: SHANGHAI COPPER - 24 HRS TECHNICAL OUTLOOK 
BEYOND THE HEADLINES: Eldorado boosts dividend; Goldcorp output steady
TORONTO, Jan 9 (Reuters) - Eldorado Gold said it will raise its dividend by 50 percent this year due to higher gold prices, while larger Canadian rival Goldcorp reported steady gold output and gave the green light to a key copper-gold project in Chile.
Vancouver-based Eldorado, which last month agreed to buy European Goldfields for about C$2.5 billion ($2.44 billion), said it would raise its semi-annual payout to 9 Canadian cents a share from 6 Canadian cents a share.
Higher prices make British tungsten mine possible
LONDON, Jan 9 (Reuters) - Higher strategic metals prices and a desire among end users for alternative suppliers to China have made mining tungsten in Britain a profitable option, the head of explorer Wolf Minerals said on Monday.
Wolf Minerals is developing the Hemerdon tungsten wolframite project in Devon, south-west England, on what - according to the latest available study by the British Geological Survey - is the world's fourth largest tungsten deposit.
EMED sees Spain copper mine permits by Q3
MADRID, Jan 9 (Reuters) - EMED Mining is closer to receiving regulatory approval to restart the historic Rio Tinto copper mine in southern Spain, Managing Director Harry Anagnostaras-Adams told Reuters on Monday.
The mine has been idle since 2000, when copper prices slumped, although the market has risen sharply in recent years, drawing renewed interest from investors in mineral-rich Spain.
INDA sees weak Brazil flat steel orders
SAO PAULO, Jan 9 (Reuters) - Steel distribution companies in Brazil will rein in orders for flat steel products from mills in the first quarter, indicating sales may stay weak and prices remain mostly stable, an industry executive told Reuters on Monday.
Preliminary data show first-quarter orders are faring poorly and below historical averages for January, Carlos Loureiro, president of Brazil's Steel Distributors' Association INDA, said in an interview. Unlike last year, clients are not piling up inventory of flat steel products at a rapid pace.
China to keep copper at $7,000-$9,000-Sucden
SHANGHAI, Jan 9 (Reuters) - The drive to develop China's interior will keep copper prices firm in a $7,000 a tonne to $9,000 range in 2012, offsetting demand damaged by a floundering European economy, a top Sucden Financial executive in Asia told Reuters.
"The most likely scenario is a $7,000 to $9,000 type range, with potential for $500 either side of that quite feasible in short term spikes," said Jeremy Goldwyn, Asian business development chief of the commodities broker.
China's Dec commodity imports to ease from Nov peak
SHANGHAI, Jan 9 (Reuters) - China's imports of crude oil are expected to hover at elevated levels in December, while shipments of key industrial commodities may moderate slightly after surging in the preceding month on lower international prices, traders said on Monday. Preliminary trade data due on Tuesday is expected to show China's annual export growth slowing to 13.5 percent in December, the weakest pace in two years and reinforcing the case for Beijing to launch more pro-active growth policy steps to support the world's No. 2 economy. | |
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