Commodity Blog

Posts Tagged ‘Japan’

Wheat prices fell today as Canada’s government report predicted that production would decline less than previously estimated. Canadian wheat output will decrease 15 percent, compared to previous estimates of a 17 percent decline. Wheat prices surged earlier after Russia banned exports because of worst drought in about half-a-century. December futures for wheat delivery slid $0.06 (0.8 percent) to $7.0825 per bushel as of 10:21 on CBoT.

Gold slipped together with other commodities today as signs slower global economic growth caused investors to sell commodities and equities. Stronger dollar also pushed gold prices lower. Reports this week increased concerns that US economy may experience double-dip recession. Next week can also bring news, as reports expected to show that sales of existing homes in the US decreased, growth of exports from Japan slowed and German business confidence weakened. December futures for gold delivery went down $7.10 (0.6 percent) to $1,228.30 per ounce by 11:19 COMEX.

Copper advanced on speculation that the demand for metals will increase as the global economic recovery expanding. The demand surge mainly originates from Asia, particularly China. The Japan’s shipments of wire and cable, made from copper, rose 13 percent in March from the previous year. July futures for copper delivery advanced $0.0175 (0.5 percent) to $3.5355 per pound on NYMEX.

Sugar futures dropped on the outlook for the recovering output in India, the largest consumer and second-biggest producer in the world. Previously sugar rose as the falling production of the sweetener in India resulted in the global deficit, but now the sugar production predicted to rise 24 percent to 23 million metric tons in the season starting October 1st. Analysts say that sugar will trade in a range $0.15-$0.18, yet in a worse case the price may drop to $0.13. July delivery for raw sugar dropped $0.0045 (2.6 percent) to $0.166 per pound on ICE Futures U.S. in New York.

Aluminum producers lowered the fee for Japanese buyers after China resumed halted capacity and supply in Asia rose as smelters began production. Premiums for the three months ending June 30 fell to $122 per metric ton down from $125 to $130 this quarter (the highest level in 14 years). The premium for Good Western-grade aluminum ingot more than doubled in 2009 as record purchases by China and decreased supplies from Russia caused shortage of the metal in Asia.

China, the largest buyer of copper in the world, decreased import after record purchases in 2009 as local smelters restarted production. Aluminum smelters in China, the largest producer of the industrial metal, resumed 5 million tons per annum of idled capacity in past year as profit margins improved with increasing prices. China’s purchases of refined aluminum dropped to 40,059 metric tons in January from 42,106 tons in December as the nation have ample inventories after it have bought more metal than necessary on outlook for a demand recovery.

Delivery for aluminum in three months rose 0.3 percent to $2,225 per ton by 15:57 on the London Metal Exchange. The price has reached previously a 15-month high.

Copper rose in London on outlook for increasing demand in Japan, the fourth biggest buyer of the metal in the world. Japan’s gross domestic product grew 4.6 percent in the fourth quarter. Imports of the metal in China declined as much as 546,000 metric tons. Yet analysts say that this decline can be more than offset by rising global demand. Three-month delivery for copper rose $70 (1 percent) to $6,880 per ton by 16:52 on the London Metal Exchange.

Wheat futures fell in Paris on speculation that rising global stockpiles will decrease prices. The U.S. Department of Agriculture reported that global wheat stockpiles will increase from 164 million metric tons a year earlier to 195.9 million tons by the end of May as supply exceeds demand for a second year. Prices may yet go up with farmers’ reluctance to sell at current prices and good European Union exports. March delivery for milling wheat fell 0.4 percent to 125.25 euros ($170.35) per metric ton today on NYSE Liffe.

Sugar falls for the third session in London on sales by investors after it rallied to a record last week. Sugar was spurred by expectations of drought in India (the second biggest producer and largest consumer) and heavy rainfalls in Brazil (the world’s biggest producer). Now Brazil and India are attempting to boost cane crop. October delivery for raw sugar declined to $0.2155 per pound (1.3 percent) on ICE Futures U.S. in New York.

Coffee prices experience the longest decline since December because of concerns for slow economic recovery. Worries rises as worldwide economic recovery are going slower than hoped for: house construction in the U.S. unexpectedly fell in July, Japan’s economy grew less than expected, foreign investment in China fell a 10th straight month. December futures for Arabica-coffee delivery fell $0.0095 (0.7 percent) to $1.28 per pound as of 10:49 on ICE Futures U.S. in New York.

Gold gained for the first time in three sessions as weaker dollar may spur demand for the metal as an alternative investment. Gold investors are hoping for inflation to boost demand for the metal. December futures for gold delivery rose $2.30 (0.2 percent) to $938.10 per ounce by 11 on the New York Mercantile Exchange’s Comex division.

Japan plans to offer loans to power producers in the U.S. and Australia that buy so-called clean coal generators from Japanese manufacturers, according to a government document obtained by Bloomberg News.

Funding from state-owned Japan Bank for International Cooperation would help drive sales of the plants that cost about $3.1 billion apiece, said a senior trade ministry official involved in producing the 113-page draft plan, due to be released today. The ministry said in an e-mail it will brief the media on a report about clean coal at 4:30 p.m. in Tokyo.

Mitsubishi Heavy Industries Ltd. and Hitachi Ltd. compete with General Electric Co. and Germany’s Siemens AG to supply plants that convert coal into gas before generating power, making it easier to trap carbon-dioxide emissions. Japan wants to benefit from new demand for clean energy after world leaders including U.S. President Barack Obama pledged to back technologies that reduce gases blamed for global warming.

“The government’s marketing campaign will be a big plus for Mitsubishi Heavy in the competition to capture the market for ‘green technology,’” said Futoshi Usui, a Tokyo-based analyst at Credit Suisse, who rates the stock “outperform”.