Posts Tagged ‘market’
Corn, Soybean Rise as Dollar Fall; Beef Decline as Demand Drop
Corn price surged to the highest level since June and soybeans gained, continuing the
Cattle futures dropped after the report that export demand for U.S. beef fell. Exports declined 20 percent to 162.4 million pounds in September from a year earlier. There is no demand for beef priced at current level, partly because of the global recession. February futures for cattle settlement dropped $0.005 (0.6 percent) to $0.8515 per pound as of 10:13 on CME.
Coffee & Copper Rises as Dollar Falls
Coffee rose as speculation that world supply will wane and a dollar will drop makes investor buy commodities to preserve their purchasing power. The dollar dropper to a lowest in 15 months versus a basket of major currencies. Global stockpiles of coffee producers may reach 16 million bags, a record low, as a bad weather in Brazil and Vietnam had negative impact on crops. December futures for
Copper prices gained the first time in three sessions as the dollar slid boosting demand for the industrial metal. The group of 20 industrial nations agreed to maintain stimulus programs to pull the world out of its great slump. These economic stimulus measures help to support the market and show that G-20 are not concerned about the dollar and will let it to fall even further. December futures for copper delivery gained increased $0.015 (0.5 percent) to $2.9675 per pound on NYMEX.
Market Near Bottom, Says Fortescue Chief
Someone had to do it. Call the bottom of the market that is. Given he was briefly Australia’s richest man with a $12 billion fortune in Fortescue shares, it was fitting it was Andrew Forrest who has made the call.
The Fortescue chief told 620 mining types at a Melbourne Mining Club lunch at the Town Hall that while 2009 was set to be quiet in terms of growth, he was prepared to call that we are “at or around the bottom of the stockmarket”.
And on the more mundane issue of Fortescue’s iron ore business, Mr Forrest disclosed that Fortescue would today issue a clarifying statement on its exposure to freight contracts that it cancelled when freight rates collapsed. Analysts estimate the group’s exposure at more than $200 million.
It would be tempting to think that Mr Forrest’s call that the market has bottomed would be his hope given his personal stake in Fortescue is now worth a little less than $2 billion. But Mr Forrest has continued faith in the urbanisation and industrialisation of China to once again fuel good times.
While it might take a few more fiscal stimulus packages to get things moving — Fortescue reckons China has another another six in the pipeline if needed — the ”fundamental factors of the boom have not changed”. “The stockmarket is bumping along the bottom and financial crises come and go,” Mr Forrest said.
What’s more, it could take 12–18 months for the pessimism to pass. As a result, there will be “fabulous opportunities out there” in the time being.
Fresh from news that Rio was in talks with Chinese
“So if you think everything is crook in Tallarook and nobody is investing, I would say think again,” he said.
He said that as a result of the global financial crisis, there was now an understanding in China that “assets that really weren’t for sale at any price just might be for sale”. “So they have crossed the first Rubicon that perhaps they can get in to these industries. That doesn’t mean that people are going to sell them cheaply,” Mr Forrest said.
His comments came as Rio is understood to be planning to sell Chinalco a minority stake in its prized Pilbara iron ore business to overcome its debt woes. Fortescue itself “would never say never” to a
“We would always look at opportunities, but at this point of time we are well capitalised. If an opportunity comes across out table which really locks in
He said talk of Chinalco’s possible deal with Rio has been around for months. “All of us have received very strong interest,” he said of the iron ore producers.
