Sydney Futures Exchange wheat firm: Sydney Futures Exchange (SFE) wheat traded steady on Tuesday after theAustralian Wheat Board (AWB) announced a steady pool price the night before. The steady to slightly firmer wheat futures market continued to defy Chicago's downturn, with strong export sales by the AWB and continuing dry Australian weather supporting local prices. Two wheat futures contracts traded on Tuesday in a slightly more active market. July 1998 traded steady on A$184.00 a tonne on five lots while January 1999 sold up by 25 cents to A$179.50 on 11 lots. Settlement prices of untraded contracts firmed marginally.

Tokyo corn futures end lower: Tokyo corn futures ended lower across the board on Tuesday, following the lower Chicago market overnight and the yen's rebound against the dollar, traders said. Prices ranged from 130 yen to 190 yen lower. Benchmark March finished down 190 yen at 15,890 yen. Estimated volume remained thin at 20,714 lots. "Selling emerged from the outset as the yen's rebound added bearishness to the market following a fall in the Chicago market," one trader said. The Maycontract on the Chicago Board of Trade corn futures hit a fresh nine-month low on slow exports on Monday. Selling pressure lost momentum later and Tokyo prices drifted within narrow ranges, the traders said. "The downside was limited on expectations that the yen will stay weak against the dollar, along with the firm prices at the CBOT Project A trading system," the trader said.

Tokyo rubber futures end mixed: Tokyo rubber futures ended narrowly mixed on Tuesday after drifting in a tight range in directionless trade, traders said. Prices ranged from 0.8 yen per kg lower to 0.8 yen up. Benchmark September was off 0.8 yen at 98.7 yen. "Most private investors retreated to the sidelines amid a lack of fresh incentives," an analyst at a commodity broker said. Although concern over bearish fundamentals capped the gains, the downside was supported by sporadic technical buying amid expectations that the yen will remain weak, the traders said.

Finerwool plans to list in June: A new-technology woolcompany, Finerwool Ltd, said on Tuesday it plans to list in June on the Australian Stock Exchange. Finerwool said in a statement it would raise funds to establish a A$30 million wool cleaning and topmaking facility at Picton, South of Perth, in Western Australia state. The size and terms of its proposed public share offer were not given. Finerwool said the plant would use a new technology, Woolclean, to produce wool solely for the high value-adding apparel market. The Woolclean processing system, developed at a cost of A$60 million over the past eight years by Kerry Packer's private company Consolidated Press Holdings Ltd, produced a superior quality, value-added wool product ready for the international apparel market, it said. The process also used an environmentally friendly cleaning system which produced no effluent. Finerwool said it had several years of forward sales contracts in place for up to 65 percent of the expected 3,600 tonnes of wool which would initially be processed at its plant eachyear.

Magnesium alloy enjoys demand: The Japanese magnesium alloy industry looks healthy despite the country's ailing economy, with the domestic electronics industry set to increase use of the metal, traders said. "Magnesium alloy is faring well," said a trader. "There's demand from the home electronics industry. Matsushita Electric Industrial Company is also going to start using the metal for television sets." Another trader agreed, adding that thixo-molding technology -- an alternative to diecasting that allows magnesium to be shaped without using strong heat to melt the metal -- was gaining popularity in Japan. Difficulties in handling magnesium, which is also used in fireworks to produce white-coloured sparks, has been one of the main reasons behind reluctance by Japanese industries to expand the use of the metal that shields magnetic waves. Traders said, however, demand for pure magnesium has remained weak in line with a downturn in the beverage can, car and construction sectors. While Chinacontinued to offer the metal for around $2,200 per tonne, there was little buying interest, they added.

Gold consolidates amid sales: Gold absorbed a bout of Australian producer selling on Tuesday, recapturing European opening levels after a wobble lower during early trade, as dealers foresaw prices rising gently. Gold fixed at $309.15 an ounce early, down on Monday afternoon's $310.60, with spot metal last at $308.90/$309.40 as against New York's $308.80/$309.30 close. "There's been some Australian producer selling overnight which I think is continuing in Europe," said one London dealer, echoing comments made by dealers in Hong Kong. Silver held steady at $6.39/$6.43, unchanged from its New York close, as dealers expressed doubts about Monday's reports that US investor Warren Buffett had sold a third or more of his 130 million ounce physical position. Platinum group metals (PGMs) were steady, with palladium last trading above its session lows having dropped some $10 during trade in New York onMonday.

Itochu in talks with Russia firm: Major Japanese trading house Itochu Corp said on Tuesday that it was negotiating with Russian energy firm Techsnabexport to import uranium for nuclear power generation. "Yes, we are talking with the Russian company (on possible uranium imports), but it's by no means serious negotiations," an Itochu spokesman said. Japan currently does not import uranium from Russia, TradeMinistry officials said. The Itochu spokesman declined to comment on whether there was a possibility a supply contract could be signed with Techsnabexport when Russian President Boris Yeltsin visits Japan later this month, but said the talks had nothing to do with the presidential visit. Japan relies totally on imports for uranium supplies for nuclear power generation, which accounts for one third of its electricity supply, officials of the Ministry of International Trade and Industry said.

Azeri exporters grab Urals loadings: This month's Urals crude export schedule at Russia's mainBlack Sea Port of Novorossiisk has at last been finalised after severe delays from a row over loadings, traders said on Tuesday. The April schedule, out around two weeks late, has now been cut back to 2.8 million tonnes, or 660,000 barrels per day (bpd). This is nearly 400,000 tonnes lower than an initialprogramme which swelled well beyond Novorossiisk's capacity because of weather-delayed volumes from March. Russian exporters have borne the brunt of the cuts to make way for extra barrels from Azerbaijan, as production rises from foreign joint ventures there. Azeri foreign consortium AIOC, which started to export oil via Chechnya in November, says it is currently sending 30,000 bpd through Novorossiisk. Azeri exporters have received a total allocation of 45,000bpd in the new programme, traders said.

Oil quota for Japan's AOC cut by 9%: Saudi Arabia and Kuwait have reduced Japan's Arabian Oil Co Ltd's (AOC) output quota in the neutral zone by about nine per cent following a pact by oil-producingcountries to cut output, an AOC spokesman said. "We have been informed of a cut of about nine per cent," the spokesman said. He said the company's production quota had been 310,000 barrels per day (bpd) prior to the cut. The cut, in effect from April 1, will be valid until there is further communication from Saudi Arabia and Kuwait, he said. AOC produces crude oil from offshore fields in the neutral zone. The zone is shared by Saudi Arabia and Kuwait.