Morgan Stanley Will Pay $6.75M Over Claims

Morgan Stanley Will Pay $6.75M Over Claims - Businessweek

Morgan Stanley will pay $6.75 million to resolve claims that its futures brokerage unlawfully traded positions off exchanges owned by CME Group Inc. (CME) (CME)  The trades during an 18-month period in 2008 and 2009 were non-competitive and constituted “fictitious sales” that violated commodity-market rules, the U.S. Commodity Futures Trading Commission said today in a statement announcing a $5 million fine against New York-based Morgan Stanley. The bank, which was accused of supervisory and record-keeping violations, will pay an additional $1.75 million to resolve related complaints from CME and the Chicago Board of Trade.

Copper rallies on China import data, Spain aid

Copper rallies on China import data, Spain aid | Reuters

Copper posted its biggest one-day gain in nearly two months on Monday, buoyed by encouraging import data from top-consumer China and optimism surrounding a bailout for Spain's troubles banks.  Copper rallied 1.7 percent on the day, defying negative reversals in the euro and in U.S. equities, after a near 12-percent rise in Chinese May copper imports helped red metal prices stay in positive territory while the initial euphoria from the $125 billion Spanish bank bailout faded later in the day.  "The copper market is far more driven at the margin by demand out of China," said Howard Simons, strategist with Bianco Research Group in Chicago.  Three-month copper on the London Metal Exchange ended up $125 or 1.7 percent at $7,420 a ton, its largest daily gain since April 20, when the price surged 1.77 percent.

Gold futures finish higher, hold below $1,600

Gold futures finish higher, hold below $1,600 - Metals Stocks - MarketWatch

Gold futures finished higher Monday, though below $1,600 an ounce, after seesawing between losses and gains as traders gauged the impact of a bailout for Spain’s ailing banks on the prospects for the euro and U.S. dollar.  Copper futures, meanwhile, scored their first gain in three sessions, buoyed by some upbeat economic data from China.  Gold for August delivery GCQ2 +0.52%  rose $5.40, or 0.3%, to settle at $1,596.80 an ounce on the Comex division of the New York Stock Exchange. It tapped an intraday low of $1,582.70 as well as a high of $1,609.30.  July silver SIN2 +0.31%  closed at $28.62 an ounce, up 14.5 cents, or 0.5%...

Corn futures tumble on Euro zone debt, crude oil weakness

Corn futures tumble on Euro zone debt, crude oil weakness Cattle News - Editorial, Grain & Cattle Markets, Current Stories
Corn futures are trading lower at midday. Corn prices turned lower on weakness in the crude oil markets and the ongoing euro zone debt crisis. New crop contracts are trending lower as parts of the U.S. Midwest saw much needed rains over the weekend. Today’s crop progress report is expected to show a decline in new crop corn conditions, which should lend support to prices...

CFTC allows CME to open grain pits early for crop reports

CFTC allows CME to open grain pits early for crop reports Cattle News - Editorial, Grain & Cattle Markets, Current Stories
The Commodity Futures Trading Commission approved the Chicago Board of Trade's plan to start open-outcry grain trading early on days the U.S. government issues major agricultural reports, a commission spokesman said on Monday.  CME Group, owner of the CBOT, told the CFTC it wanted to start pit trading at 7:20 a.m. CDT (1220 GMT), instead of the traditional opening time of 9:30 a.m., when the U.S. Department of Agriculture issues major reports.  The CFTC did not object to the change after a 10-day review of the plan ended on Friday, the spokesman said.  The change will take effect on Tuesday, when the USDA is due to issue crop reports at 7:30 a.m. CDT.

Speculators Fail to Reap Rally in Crops After Wager Cut

Speculators Fail to Reap Rally in Crops After Wager Cut - Bloomberg
Speculators reduced wagers on a rally in agricultural prices to a five-month low just as returns from crops and livestock beat most other commodities on concern that parched fields from Iowa to Russia will curb supply.  Hedge funds and other money managers cut net-long positions across 11 U.S. farm goods by 20 percent to 312,099 futures and options in the week ended June 5, the lowest since Dec. 27, Commodity Futures Trading Commission data show. Corn holdings tumbled to the lowest since June 2010 and traders switched to betting on a decline in wheat prices. Agricultural commodities accounted for nine of the 10 best performers in the Standard & Poor’s GSCI Spot Index of 24 raw materials last week.

Gold-Investment Demand in China to Advance 10%, ICBC Says

Gold-Investment Demand in China to Advance 10%, ICBC Says - Bloomberg
Gold-investment demand in China may gain more than 10 percent this year as buyers seek a haven from Europe’s debt crisis and the prospect of weakening currencies, according to the country’s largest bullion bank.  “Investors here want to hold part of their assets in gold to hedge for the risks, especially now that the financial crisis has evolved into a sovereign crisis,” Zheng Zhiguang, general manager of the precious-metals department at Industrial and Commercial Bank of China Ltd., said in an interview in Shanghai. China will topple India this year as the largest bullion market as rising incomes bolster demand, the World Gold Council forecasts. Gold may gain for a 12th year in 2012 as European policy makers strive to avoid a breakup of the euro zone and the U.S. Federal Reserve weighs more stimulus to aid the recovery.

U.S. Stocks Drop as Optimism About Spain Bailout Fades - Bloomberg

U.S. Stocks Drop as Optimism About Spain Bailout Fades - Bloomberg
U.S. stocks fell, paring gains from the biggest weekly rally in the Standard & Poor’s 500 Index this year, as optimism over Spain’s bailout plan gave way to skepticism it will succeed in halting the debt crisis.   Bank of America Corp. and Morgan Stanley declined at least 1.8 percent. AK Steel Holding Corp. (AKS) tumbled 13 percent as Goldman Sachs Group Inc. said there is “no relief in sight” for a drop in the metal. Apple Inc. (AAPL) advanced 0.1 percent, paring a rally of as much as 1.4 percent, after updating its MacBook line of laptops during an annual developers conference.  The S&P 500 fell 0.3 percent to 1,322.14 at 1:58 p.m. New York time, after rallying as much as 0.7 percent earlier. The benchmark measure climbed 3.7 percent last week. The Dow Jones Industrial Average lost 31.94 points, or 0.3 percent, to 12,522.26 today. Trading in S&P 500 companies was down 14 percent from the 30-day average at this time of day.

OPEC Set to Break 10-Year Habit of Supply Cuts During Routs

OPEC Set to Break 10-Year Habit of Supply Cuts During Routs - Bloomberg
For the first time in a decade, OPEC will maintain oil-output quotas while prices plunge as Europe’s debt crisis and China’s slowing growth curb fuel demand.  The Organization of Petroleum Exporting Countries, which supplies 40 percent of the world’s crude, will keep its official daily production ceiling at 30 million barrels when its 12 members meet in Vienna on June 14, all 20 traders and analysts surveyed by Bloomberg News said. The group has agreed to cuts at every meeting in the past 10 years that coincided with a price drop of more than 10 percent in the preceding three months, data compiled by Bloomberg News show. OPEC will probably keep the limit unchanged, a Middle East member state delegate said today.

Corn, soy drop after early rise; follow equities

GRAINS-Corn, soy drop after early rise; follow equities | Reuters
U.S. corn and soybeans fell on M onday, reversing an early rise while wheat trimmed gains as equities and crude oil slid after traders digested potential fallout from a euro zone deal to shore up Spain's banks. Some traders also said rains overnight in portions of the U.S. Midwest may have weighed on corn and soybean futures. A relief rally after the approval of a rescue package worth up to $125 billion for Spanish banks fizzled as investors worried about details of the deal and the upcoming Greek election.

Treasuries pare loss as Spanish aid seen as short-term solution

Treasuries pare loss as Spanish aid seen as short-term solution
Treasuries pared a decline on speculation a bailout of Spanish banks will provide only a short-term solution the region’s sovereign-debt crisis now in its third year.  U.S. government securities also reversed losses as Spanish and Italian bonds slid on bets the 100 billion euros ($126 billion) of aid for Spain’s banks won’t be enough to stop turmoil from spreading. Treasuries fell earlier as stocks advanced, luring investors to higher-yielding assets. The U.S. will auction $66 billion of notes this week, starting with $32 billion of three-year securities tomorrow.

OIL FUTURES: Crude Oil Little Changed As Dollar Gains Vs Euro

OIL FUTURES: Crude Oil Little Changed As Dollar Gains Vs Euro - WSJ.com
Crude oil futures prices were little changed Monday, down from highs set as news from Spain and China stemmed concerns of deepening economic concerns that recently sank prices to their lowest levels since October.  Spain agreed to a $100 billion euro ($125 million) European Union bailout for its struggling banking sector, while data from China, showed the world's second-biggest oil consumer, imported record volumes of crude oil in May.  Worries over a contagion effect throughout Europe ...

Cocoa Futures Rise to Two-Week High; Cotton, Orange Juice Drop

Cocoa futures rose to a two-week high on speculation that rain may reduce crops in West Africa. Cotton and orange juice fell.  Ivory Coast, the world’s top cocoa producer, and Ghana, the second-biggest, will get rain at least through June 13, the U.S. National Oceanic and Atmospheric Administration said. Prices gained for the fifth time in six sessions.  “Showers have been reported in most parts of West Africa in recent days, and some think the current rains will delay harvest and could hurt quality as drying the beans becomes harder,” Jack Scoville, a vice president at Price Futures Group in Chicago, said in a report.  Cocoa for September delivery climbed 0.9 percent to $2,205 a metric ton at 10:44 a.m. on ICE Futures in New York. Earlier, the price reached $2,230, the highest for a most-active contract since May 22.  In London, cocoa futures gained on NYSE Liffe in London.  Cotton futures for December delivery slid 1.2 percent to 69.03 cents a pound in New York.