Soy jumps on China rate cut; oil, gold down on Fed

COMMODITIES-Soy jumps on China rate cut; oil, gold down on Fed | Reuters
Soybeans had their largest rally in two months o n Thursday after China cut interest rates, but oil returned to below $100 a barrel and metals mostly fell as U.S. Federal Reserve Chairman Ben Bernanke disappointed investors expecting a stimulus. The 19-commodity Thomson Reuters-Jefferies CRB index settled a touch higher after the dollar's weakness against the euro for a second day made it advantageous for those using the single currency to buy raw materials priced in dollars...

Sugar hit by profittaking after two-day rise

SOFTS-Sugar hit by profittaking after two-day rise | Reuters
The sugar market closed lower on Thursday after two days of gains as investors took profits as deepening despair over a global surplus and weak demand offset support from a possible rain-delayed harvest in Brazil.  Cocoa raced higher for a fourth day in a technical correction after prices hit five-month lows late last week.  The short covering briefly propelled sugar higher on Thursday for a third straight day, taking it further above 20 cents per lb to fresh two-week highs, before prices fell into negative territory as concerns about a production surplus returned.

Emerging Market Currencies, Debt Endure Volatile Day

Emerging Market Currencies, Debt Endure Volatile Day - WSJ.com
Emerging market currencies and debt trade was volatile after hopes of a rally were dashed Thursday.
With most developed central banks staying pat, there was little momentum in currency markets and higher-yielding currencies were expected to come under pressure again.  Earlier in the day, after an unexpected rate cut from China's central bank, emerging market assets were poised for a rally. But testimony by Federal Reserve Chairman Ben Bernanke dragged down sentiment as there was no indication of stimulus or easing, even though he said that the country...

Germany’s Merkel Calls for European ‘Political Union’

Germany’s Merkel Calls for European ‘Political Union’ « VOA Breaking News

German Chancellor Angela Merkel says Europe needs to move beyond its common euro currency to create a “political union” in order to resolve the continent's governmental debt crisis.  The German leader says individual governments in the 17-nation eurozone gradually need to cede powers to European control, a contentious proposition on the continent. She told German public television that a currency union is not enough, and the eurozone countries need to adopt common budget policies, as well as create a fiscal union and “above all a political union.”

Top 10 rogue traders plus 2

Top 10 rogue traders plus 2

Former Société Générale trader Jérôme Kerviel is back in court this week, appealing his three-year prison sentence on charges that he lost more than €4.9 billion ($6.4 billion) through unauthorized trading. Kerviel, whose sentence is suspended pending his appeal, claims that the bank had full knowledge of his risky trades.  Unfortunately, Kerviel isn’t the only trader to defraud his company—and its clients—of major cash.  In his honor, here are 10 traders (plus a couple of special categories) who went rogue and paid the price. Be sure to click through to our Bonus Selections.

Stocks rise as China offsets Bernanke, gold falls

Stocks rise as China offsets Bernanke, gold falls | Reuters

Global stocks rose on Thursday after China unexpectedly cut interest rates to shore up growth, but optimism was tempered by Federal Reserve Chairman Ben Bernanke, who disappointed investors looking for further stimulus for the U.S. economy.   Gold tumbled nearly 2 percent as investors unwound bullish bets built on expectations of Fed easing. Bullion was hit particularly hard compared with equities and other commodities, as it has been heavily used by institutional investors to hedge against economic uncertainties.  Bernanke, in testimony to Congress, said the Fed was ready to shield the U.S. economy if financial troubles mount, but offered few hints that further monetary stimulus was imminent.ž  He said the central bank was closely monitoring "significant risks" to the U.S. recovery from Europe's debt and banking crisis, but struck a decidedly different tone from the central bank's No. 2 official, who argued in favor of monetary support on Wednesday.

Great day for soybeans: Futures settle 37 to 42 cents higher

Great day for soybeans: Futures settle 37 to 42 cents higher Cattle News - Editorial, Grain & Cattle Markets, Current Stories
Corn futures settled 11 to 17 cents higher on Thursday. Several key factors attributed to today’s higher corn prices. The market was supported by forecasts for dry weather across the U.S. Corn Belt and tightening corn stocks. News that China plans to increase imports of corn and soybeans for the 2012/13 crop year to cover demand needs encouraged deferred contacts. Lastly, China’s cut to interest rates spurred a round of investment buying across commodities.  Soybean futures settled 37 to 42 cents higher on Thursday. Great day in the soybean market. Prices closed their highest level in three weeks...

GRAINS-Corn hits 2-wk high, soy up for 3rd day on risk appetite

GRAINS-Corn hits 2-wk high, soy up for 3rd day on risk appetite | Reuters
U.S. corn edged up to a two-week high on Thursday, gaining for three out of four sessions, while soy rose for a third consecutive day as growing hopes for monetary easing and the rescue of Spain's troubled banks boosted risk sentiment. Wheat ticked higher, mirroring strength in broader commodities markets, although gains were capped by improved crop conditions in Russia and harvest pressure in the United States.

Thai Sugar Output, Exports May Climb to Records, Millers Say

Thai Sugar Output, Exports May Climb to Records, Millers Say - Bloomberg
Sugar production in Thailand, the second-largest exporter, may reach a record for a third year in the season from November as millers expand capacity to meet rising regional demand, according to an industry group.  The cane harvest may total 103 million to 105 million metric tons, bringing sugar output to about 10.5 million to 10.7 million tons, said Vibul Panitvong, executive chairman of the Thai Sugar Millers Corp, which represents the country’s 47 mills. Exports may exceed 8 million tons next calendar year, he said in an interview today.  Increased output will enable the country to boost supplies to Asia, where demand remains strong, Vibul said in Bangkok. The region faces a long-term sugar deficit as economic growth raises demand, with supply set to trail usage by about 3 million tons this year, Green Pool Commodity Specialists forecast in February.  “We will see sugar production and exports break a new record due to attractive cane prices and a startup of five new mills next year,” Vibul said. Cane production may climb further, reaching 130 million tons in three to five years, he said.  Raw sugar on ICE Futures U.S. has lost 17 percent over the past year on prospects for another global glut. The July- delivery contract traded at 20.31 cents a pound at 6:50 p.m. in Singapore after rising 2.1 percent as rains hit Brazil’s harvest.

Soybeans Head for Longest Winning Streak in a Month on China Buy

Soybeans Head for Longest Winning Streak in a Month on China Buy - Bloomberg
Soybeans advanced for a fourth day, the longest winning streak since April, as U.S. exporters sold more oilseeds to China and on signs policy makers around the world may take steps to revive the slowing economy.  November-delivery soybeans gained as much as 2.1 percent to $13.2625 a bushel on the Chicago Board of Trade and were at $13.24 at 1:39 p.m. in London.  Exporters in the U.S., the world’s largest grower and shipper, sold 120,000 metric tons of soybeans to China for delivery in the year ending Aug. 31, the Department of Agriculture said yesterday. The Group of Seven nations agreed to coordinate their response to Europe’s debt crisis. Federal Reserve Vice-Chairman Janet Yellen said the U.S. economy may need additional monetary stimulus.

Gold rises after China rate cut, ahead of Fed

PRECIOUS-Gold rises after China rate cut, ahead of Fed | Reuters
Gold rose back towards $1,625 an ounce on Thursday after a Chinese rate cut hurt the dollar, and as investors geared up for a Federal Reserve statement later which will be closely watched for clues as to the future direction of U.S. monetary policy.  China's central bank cut benchmark interest rates by 25 basis points in a surprise move to shore up slackening economic growth, its first rate reduction since the depths of the 2008/09 financial crisis. The dollar fell in response.

Copper turns positive after China cuts rates

METALS-Copper turns positive after China cuts rates | Reuters
Copper shook off earlier losses in volatile trade on Thursday, rallying sharply after China's government agreed to cut benchmark lending and deposit rates for the first time since the global financial crisis. While the rate cut was seen as the most aggressive move yet to shore up growth in the face of rapidly-slowing economic activity, metals traders and analysts said the positive impact on prices would be fleeting.

Sugar extends gains, rain delays Brazil harvest

SOFTS-Sugar extends gains, rain delays Brazil harvest | Agricultural Commodities | Reuters
Raw sugar held above 20 cents on Thursday, as wet weather in top producer Brazil was expected to cause harvest delays. Arabica coffee and cocoa futures on ICE were also higher, inline with the firm commodities complex, after the 19-commodity Thomson Reuters-Jefferies CRB index posted its biggest rebound in more than three months the previous session, supported by growing hopes for a solution to the euro zone crisis...