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Daily Commodities Brief This Daily Newsletter Is Available to Reuters Customers on Their Desktop Terminals Using the Code [COM/BRIEF] Or Via Email Compiled on Tuesday, May 11, 2010 Daily Commodities Brief This daily newsletter is available to Reuters customers on their desktop terminals using the code [COM/BRIEF] or via email. If you would like to receive it directly, please register at http://online.thomsonreuters.com/commodities%5Fpreference/ Index (Total Return) Close10May Change YTD Change Contract (AS OF 0719GMT) Price Change Net Change YTD Reuters/Jefferies CRB 261.09 1.58% -6.29% NYMEX light crude $76.23 -0.74% -$0.57 -3.23% S&P GSCI 4288.078 1.82% -5.43% NYMEX RBOB gasoline $2.17 -0.25% -$0.04 5.85% Rogers International 3076.78 -0.63% -6.04% ICE gas oil $670.25 -0.22% -$671.75 5.70% NYMEX natural gas $4.16 -0.29% -$0.01 -25.16% Dow Jones - UBS 128.6608 1.22% -6.43% Spot Gold $1,206.40 0.37% $4.50 9.69% Cont Commod Indx 466.45 0.95% -2.79% LME Copper $7,010 -1.61% -$115.00 -3.46% Other Market Performance LME Aluminium $2,115 -1.17% -$25.00 -3.72% US STOCKS (DJI) 10380.43 3.90% 3.42% CBOT Corn $3.61 -0.55% -$0.02 -12.42% US DOLLAR INDEX 84.156 -0.35% 8.09% CBOT Wheat $4.82 -0.05% $0.00 -10.90% US BOND INDEX (DJ) 255.05 -0.18% 3.41% Malaysia Palm Oil (3M) R2,510 -0.75% -R19 -5.03% CHART OF THE DAY (Click on the chart for full-size image) Join Reuters Editorial Live on 11 May to Discuss USDA Crop Report The Global Ags Forum, Thomson Reuters online chatroom for grain traders and analysts, will host a chat with columnist Gavin Maguire starting at 7:45 am CDT (1245 GMT) Tuesday 11 May after USDA issues its May crop report. This will be USDA's first estimates of the U.S. winter wheat crop and new-crop 2010/11 ending stocks forecasts. To find out more and join the Global Ags Forum click here TODAY’S MARKETS (Click below to read the full report if you are a 3000 Xtra or RTC user) OIL: Oil fell below $77 as a stronger dollar signalled lingering doubts about a resolution to Europe's debt crisis, while Chinese inflation data raised concern about potential monetary tightening measures. MARKET NEWS (Click on the headlines below to jump to the story) "The euro rallied and then has come back down as the initial relief ENERGY was over," said Stefan Graber, a commodities analyst with Credit • China April refinery runs at a record 8.37 mln bpd Suisse in Singapore. • Valero says Texas refinery unit shut due to fire BASE METALS: Base metals prices fell, as euphoria about a trillion • Ecuador to pay 'fair' price if seizes oil assets dollar plan to prevent a European sovereign debt meltdown, gave • POLL-US crude inventories seen up on imports, way to longer term worries about the outlook for the euro zone and lower runs China. "The markets are still digesting. It soothed some of the fear but it's a band rather than a cure. In the short term it should halt the • Swiss firms easily replaced on Libya projects- panic and give people time to try to solve the problem," said Joel official Crane, analyst at Morgan Stanley. AGRICULTURE PRECIOUS METALS: Gold edged down after a volatile session the • USDA expected to project large corn, soy previous day, but a rise in ETF holdings to another record suggested surpluses that investors remained faithful to the metal. "I think people don't • U.S. soybean plantings double in latest week really buy this rescue package. I think most of the countries' Con- • China corn sales squeezing US top quality supplies gress have yet to approve it before they can release the fund," a bul- • Colombia seen missing its mid-year coffee target lion dealer in Hong Kong said. BASE METALS GRAINS: U.S. corn futures eased ahead of a U.S. government report • Rio Tinto clears Australia environment step, eyes that is expected to show corn supplies at their highest level in five tax years. "We did see a very strong rally in crude oil overnight, a key inflation hedge, and a commodity against which ags/softs have often • China steel output hits new record in April played catch up," said Briggs. • China April refined copper output up 6.1 pct GLOBAL MARKET: A massive relief rally in world stocks on news of a BEYOND THE HEADLINES $1 trillion deal to resolve Europe's debt crisis slowed down in Asia • COLUMN-What's in a word? Senate battle on on nagging doubts about how Greece and other debt-laden euro derivatives: John Kemp zone countries will reduce their budget deficits. • COLUMN: Upcoming USDA Report Preview: EVENTS TO WATCH TODAY (GMT) Gavin Maguire GERMAN APRIL FINAL CPI, WHOLESALE PRICES (0600) • Australia wheat quality woes to shrink market UK MARCH INDUSTRIAL PRODUCTION (0830) share ICSC/GOLDMAN SACHS WEEKLY U.S. CHAIN STORE SALES (1145) • OPEC sees oil price boost on euro zone bailout REDBOOK WEEKLY U.S. RETAIL SALES (1255) • Peabody, Xstrata lead fallout from Australia U.S. WHOLESALE INVENTORIES FOR MARCH (1400) mining tax ABC U.S. WEEKLY CONSUMER COMFORT INDEX (2100) • US SEC, exchanges agree to boost market safeguards CLICK HERE TO SEE UPCOMING EVENTS AND CONFERENCES Daily Commodities Brief Tuesday, 11 May 2010 MARKET NEWS Rio Tinto clears Australia environment step, eyes tax China April refined copper output up 6.1 pct SYDNEY, May 11 (Reuters) - Rio Tinto has cleared a key HONG KONG, May 11 (Reuters) - China's production of environmental hurdle in its plan to boost capacity at its refined copper rose 6.1 per- Cape Lambert iron ore port, but the project faced uncer- cent in April on the month, tainty due to the new mining tax, the firm said on Tuesday. while output of primary alu- The Western Australian state Environmental Protection minium inched up 0.1 percent Authority has given the Pilbara district project, estimated to rack up its second-highest monthly output on improved by analysts to cost more than $10 billion, approval to boost capacity by 62 percent to 130 million tonnes from 80 mil- power supplies. lion now. The country, the world's top The authority's clearance, subject to a two week appeal consumer of most base metals and producer of aluminium, process, was a "very important step" in meeting its produc- lead and zinc, produced 380,000 tonnes of refined copper and 1.365 million tonnes of primary aluminium in April, tion target of 330 million tonnes in 2015, a Rio spokesman said. data from the National Bureau of Statistics showed on Tuesday. The project faces further environmental scrutiny before construction could start and Rio's board has yet to give its Strong copper prices had encouraged Chinese copper final investment approval for the work. smelters to maintain high production, said Heng Kun, an analyst at Essence Securities. "Smelters were expecting copper prices to stay strong," he said. China steel output hits new record in April SHANGHAI/BEIJING, May 11 (Reuters) - Chinese crude China April refinery runs at a record 8.37 mln bpd steel production hit a fresh all-time high of 55.4 million tonnes in April thanks to strong prices, although high in- BEIJING, May 11 (Reuters) - China's refinery crude ventories and lower prices may curb further production throughput increased 17.1 percent from a year earlier to a rises in coming months. record high of 8.37 million barrels per day (bpd) in April, official data showed on Tuesday. Output grew by 27 percent year-on-year, taking the Janu- The throughput was in line with an earlier Reuters poll that ary-April total to 213.9 million tonnes, according to data from the National Bureau of Statistics. showed top refineries in the world's second-largest con- suming nation would raise April runs to record highs as The enthusiasm of Chinese steel mills has fuelled a surge in plants returned from shutdowns to meet improving domes- steel prices lasting into mid-April, with demand from down- tic fuel sales while awaiting the first fuel increase since No- stream industries still strong as a result of a government vember. stimulus package. These leading refineries would process crude oil in May at "This was expected. Steel prices reached a peak in mid- the second-highest rate on record after Beijing raised fuel April, so definitely, steel mills have been keen to produce as prices last month amid rising seasonal demand, another much as possible," said Zhang Ping, an analyst with the Reuters survey indicated. information consultancy Umetal.com. Beijing raised retail gasoline and diesel prices by around 4 percent and ex-refinery jet fuel by about 10 percent on USDA expected to project large corn, soy surpluses April 14 -- the first such move in five months -- to track higher crude oil costs and take prices to new highs. WASHINGTON, May 11 (Reuters) - U.S. corn and soybean stockpiles will swell to their largest size in recent years as the result of record-large crops this year, the government Valero says Texas refinery unit shut due to fire was expected to project on Tuesday. NEW YORK, May 10 (Reuters) - Valero Energy Corp had an Surpluses would rise as crop production outpaces heavy emergency shutdown on Monday of a unit at its 315,000 feed, export and biofuel usage in the marketing year that barrel-per-day Corpus Christi, Texas, refinery due to a starts on Sept 1, said a survey of traders.
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