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REUTERS & AGENCIES
Euro cotton prices rise on thin volume: Prices for European raw cotton have increased due to the recent firmness of the New York futures market, reported Cotlook Ltd, a Liverpool-based cotton information company, on Monday. The report said trading activity in Europe was limited Monday also in response to the situation in New York. Most mills are still on holiday and no significant new enquiry has been noted. Reports from China, where there is still significant rainfall, confirmed that between 3 per cent and 5 per cent of the area that is flooded is planted with cotton.
Euro cotton prices rise on thin volume: Prices for European raw cotton have increased due to the recent firmness of the New York futures market, reported Cotlook Ltd, a Liverpool-based cotton information company, on Monday. The report said trading activity in Europe was limited Monday also in response to the situation in New York. Most mills are still on holiday and no significant new enquiry has been noted. Reports from China, where there is still significant rainfall, confirmed that between 3 per cent and 5 per cent of the area that is flooded is planted with cotton.
NYCE cotton settles higher: Cotton futures on the New York Cotton Exchange (NYCE) settled mostly higher Monday day due to short-cover buying, analysts said. Commodity funds "got a technical buy sign" when the December contract opened above support at 73.85 cents per pound, said Ann Prendergast, analyst with Refco, Inc, in New York. The funds "had been very short" as of last week, she said, and they covered after the higher opening Monday. The market moved higher because the falling US dollar Monday implied higher US industrial exports, she said. The market also "took courage" from a rising US stock market, which implied higher consumer spending.
Dutch sugar beet yield down: The second Dutch sugar beet forecast for 1998 showed a yield of 9.1 tonnes per hectare white value, down from 9.6 tonnes at the same time in 1997, the Institute for Sugar Research (IRS) said on Tuesday. This compares to an average yield during 1988-1997 of 9.4 tonnes per hectare, the IRS added. Beet weight per hectare was forecast at 56.4 tonnes versus 60.1 tonnes in the second 1997 forecast and an average weight during 1988-1997 of 59.4 tonnes. This is the second of the computer-based forecasts to be issued this season. The next forecast is due on Tuesday, September 1, the IRS said.
Slowdown in exports of Indonesian corn: A scarcity of corn in Indonesia's markets has slowed exports, but local prices were slightly down on Tuesday, traders said. "I don't think anyone can purchase a tender for export these days because it would take some time to accumulate tonnes of corn," said one trader in Surabaya. Last week Malaysia bought 15,000 tonnes of corn from Indonesia for August/September shipment, but traders said they did not see any indication of interest in a fresh deal this week. The domestic cornfeed market has been hit by a fall in meat consumption in Indonesia, another victim of the currency crisis in which the rupiah has plunged more than 80 per cent against the dollar. The poultry and livestock industry has been squeezed by falling meat consumption on the one hand and soaring costs of feed ingredients on the other. Indonesia used to import corn from Argentina and the United States, but the trend reversed in February with the country starting to export corn because of the amplesupply. But traders said corn consumption has risen again because some people in Indonesia have substituted corn as their food staple due to the rising price of rice.
Dalian soybean futures end up: Dalian soybean futures firmed on Tuesday as floods in the northeast province of Heilongjiang, China's major soybean producing areas, triggered concerns over this year's crops, traders said. The key November 1998 contract ended at 2,591 yuan ($312) per tonne, rising 35 yuan from Monday's close. It opened at 2,560, hitting an intraday high of 2,595 and a low of 2,554. "Floods had become a dominant factor," a trader said. "Many investors believed this year's crops would be severely affected." The September 1998 contract rose four to 2,694, the January contract 1999 29 to 2,478, March 18 to 2,478, May 34 to 2,585 and July 30 at 2,596. Combined volume jumped to 130,208 lots from 80,862 lots. Traders said overnight gains on the Chicago Board of Trade (CBOT) also contributed to Tuesday's gains in Dalian.
SFE wheat rises further: Sydney Futures Exchange (SFE) wheat rose slightly again on Tuesday on the feeling that the market had been oversold. January 1999 traded up by 75 cents to A$155.50 a tonne on 23 lots. March 1999 sold steady on A$156.00. Settlement prices generally rose by less than A$1.00. Phil Lindsay of Ord Minnett Jardine Fleming Futures said the general sentiment was that the market had been too pessimistic on grain prices and could have been over-sold. Factors such as the China flood also washed through market talk, he said. "This market is still going to go up to about A$162.00," he said. Around that level there would be a stronger end-user buying focus on China and on drought in some areas of the former USSR, he said. End-users were presently in a complacent mood, he said.
Tokyo corn futures end mostly lower: Tokyo yen-based corn futures ended a tad lower except for the benchmark September contract after light trade on Tuesday, as the yen's firmer tendency against the dollar undermined sentiment, traders said. "Despite slight gains in the Chicago market overnight, the weaker dollar dented prices from the outset," said a trader at a commodity broker. "But most market players retreated to the sidelines," he added. Traders believed that the Chicago market has appeared to find a near-term floor, but most traders said it lacked energy to rise strongly due to overall good crop weather in the US midwest. Traders said they were closely watching developments over the floods in China, and some said there could be a spillover effect, with corn prices climbing in line with soybeans if the floods spread into soybean areas.
India releases additional sugar The Indian government has released 50,000 tonnes of sugar as an additional quota for domestic sale in September to keep prices under check during the festival season, the food ministry said on Tuesday. "With this additional release, the total quantity of sugar available for internal consumption during September would be 850,000 tonnes," a ministry statement said. It said further releases, if necessary, would also be made to keep sugar prices stable during the festival season. Prices of essential commodities, including sugar, tend to rise in India during the festival season between August and October.
CBOT corn, wheat close higher: Corn and wheat futures closed slightly higher Monday at the Chicago Board of Trade (CBOT), but couldn't hold all the significant gains posted early in the session. Corn and wheat posted strong opening gains, then treaded water most of the session to close slightly higher. Early buying came as traders contemplated possible flood damage to China's crops and new US Forecasts for hotter weather in the midwest. Though the floods in China appeared to pose a significant problem, most market watchers said it's too early to estimate their true potential for damage, and the flood-based buying was mostly psychological at the CBOT. Some analysts said short-covering played a larger role, with many market participants judging both corn and wheat to be oversold. The midwest heat forecast, while definitely an influence on the markets' higher close, probably got a lot more attention than it deserved, said Dave Maher, analyst with Securities Corp of Iowa in Cedar Rapids. Though the sessionbegan with some enthusiasm, the floor quieted by midday, with volume quite light, traders said. Maher predicted that Monday's gains would be short-lived, forecasting a lower close Tuesday.
Liffe grains close higher: Liffe wheat futures closed between 65 pence and 1.00 sterling higher Monday, after a lack of sellers in the market forced short-coverers to pay up at higher prices, said brokers "Anyone who wanted to cover their position today had to pay up a bit due to the lack of sellers and that saw prices rise," said one Liffe broker. However, brokers warned that the lack of sellers in the market at present did not indicate a lack of supply, with many believing prices are artificially high. After November, the second largest gains were by January and March wheat, both up 85 pence on the day to trade at 76.00 sterling and 78.00 sterling a metric ton, respectively. Brokers also said better-than-expected quality of the UK harvest, and a weakening in the value of the pound also helped boost prices.
MECL to explore for coal bed methane: Public sector undertaking, Mineral Exploration Corporation Limited (MECL) has expressed its readiness to explore an estimated 150 billion cubic meter coal bed methane (CBM) worth nearly Rs 50,000 crore in western part of Vidarbha. At a meeting convened by Sicom here on Monday and presided over by Maharashtra minister for public works Nitin Gadkari, the director technical of MECL, Dr MG Deshmukh agreed to initiate the exploratory study of Pulgaon, Wardha, Yavatmal and Murtizapu (Akola) areas in the region. These areas appears to have substantial CBM gas reserves. The meeting was told that union petroleum ministry has been requested to conduct the study and the Oil and Natural Gas Commission (ONGC) was too sounded. Maharashtra government has sought services of former deputy general manager (geology) ONGC, Mumbai, SV Kunte for the proposed exploratory study.
US west coast gasoline flat: Prices for US west coast refined products were flat Monday, with markets idle while traders attended an industry conference. Discussion was thin all day, with no deals reported, according to traders reached at an all-day golf tournament. West Coast spot gasoline in Los Angeles traded 49/50 cents, equal to Friday levels. Spot prices for West Coast distillates were also flat, with no new refinery problems reported. Markets fell slightly in New York. September unleaded gasoline eased 0.01 cent a gallon to 42.42 cents on the New York Mercantile Exchange (Nymex). World producers continued to say inadequate production cuts keep world inventories too high, weakening prices. Nymex front-month crude prices fell 15 cents a barrel in response Monday, wiping out slight gains made Friday.
Mitsui Mining cuts zinc price: Mitsui Mining and Smelting Co Ltd said on Tuesday it had reduced its selling price for zinc by 4,000 yen to 192,000 yen per tonne, effective immediately. Major Japanese smelters periodically review their selling prices, changing them in line with market prices and currency rates.
Glencore joins World Coal Institute: Glencore International AG, which has been building up coal assets in Australia, has joined the London-based World Coal Institute (WCI). WCI also announced that Celtic Energy Ltd had also become a member. Glencore, a Switzerland-based international commodities group, has investments in coal mines around the world which export 17 million tonnes of coal a year. Celtic Energy is Britain's second largest coal producer. Formed in 1995 following the privatisation of British Coal, Celtic Energy currently produces just under two million tonnes of high quality coal a year from its operations in South Wales. WCI chairman David Klinger, who represents Rio Tinto plc in the organisation, said the institute now had the two main British coal producers as members, "emphasising the UK coal industry is still very much alive and competing on an international basis".
James Hardie to upgrade gypsum plant: James Hardie Industries Ltd's gypsum unit said on Tuesday that it will spend $3 million to upgrade its gypsum plant in Seattle. The company said the upgrade would increase the Seattle plant's total production capacity by 13 per cent to 700 million square feet a year. Peter Macdonald, president of James Hardie USA, said in a statement the plant upgrade was due to be completed in the first half of 1999. Macdonald said the latest upgrade followed a $28.4million upgrade of the Seattle plant which increased capacity 125 per cent through a second production line and the upgrade and modernisation of the first line.
Furukawa smelter start delayed: Furukawa Co Ltd said on Tuesday that the start-up of its Port Kembla copper smelter has been delayed until June next year due to weather problems and a labour shortage in Australia. Confirming an industry newspaper report, a Furukawa spokesman said the company planned to start operating the 120,000 tonne-per-year copper smelter in New South Wales in June 1999, instead of in late 1998 as initially planned. The spokesman said the delay was caused by excessive rains and a labour shortage amid a construction boom ahead of the Summer Olympic Games in 2000 in Sydney, and not by an oversupply of the metal in Asia. He said Furukawa planned to produce about 60,000 tonnes of copper cathode at Port Kembla next year, with 80 percent of the output to be sold locally. Some of the output may be sold in Japan, depending on market conditions. Asked where Furukawa would acquire copper concentrate for the Port Kembla smelter, he said the company had not yet decided if it would get the rawmaterial from Australia or from other countries such as Chile or Papua New Guinea.
Furukawa mulls copper production cuts: Furukawa Co said on Tuesday it was considering cutting production of refined copper due to slack domestic demand and high prices of copper concentrate. Confirming a report in an industry newspaper, a company spokesman said Furukawa was looking into possible production cuts. The company will draft a production plan by the end of next month for the second half of its business year starting in October. The daily Materials & Industry News quoted Furukawa vice-chairman Ichiro Fujimura as saying: "In addition to poor (domestic) copper sales, tough raw materials conditions make it necessary for us to consider production cuts. Referring to the concentrate market, he said: "Treatment charges and refining charges (TCRCs) have dropped. Recently that became obvious in the spot market, which will have an impact on term contracts as well.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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