EU and U.S. inch toward talks on free trade area

EU and U.S. inch toward talks on free trade area Latest News - Editorial, Grain & Cattle Markets, Current Stories
The United States and the European Union on Wednesday inched closer to starting negotiations on a long-desired free trade deal, with the release of a report calling for wide-ranging market opening and mutual acceptance of product standards.  U.S. President Barack Obama, whose administration is already pursuing a free trade agreement between the United States and 10 countries in the Asia Pacific region, referred to the US-EU initiative at a closing press conference on Tuesday at the Group of 20 leading economies summit in Las Cabos, Mexico.  "Today, the United States and the European Union agreed to take the next step in our work towards the possible launching of negotiations on an agreement to strengthen our already very deep trade and investment partnership," Obama said.
Obama and EU leaders urged the working group to "complete its work as quickly as possible" so a formal decision on whether to launch negotiations could be made later this year.  "A strong outcome can enhance not only transatlantic economic ties, but also address shared market access challenges in third countries and encourage a forward-looking multilateral trade liberalization agenda," said Obama, European Commission President Jose Manuel Barroso and EU Council President Herman Van Rompuy in a joint statement.

Soybeans extend rally on tight US stocks; wheat up

GRAINS-Soybeans extend rally on tight US stocks; wheat up | Reuters
Soybean futures rose for a third straight day on Wednesday, supported by good export prospects for U.S. supplies and by dry weather in the U.S. Midwest that may hurt the developing crop. Wheat rallied from early weakness on short-covering and firm cash markets, especially in the thinly traded Minneapolis spring wheat market, and corn futures rallied toward the close to erase early losses...

Japan Futures Little Changed as Fed Cuts Outlook

Japan Futures Little Changed as Fed Cuts Outlook - Businessweek
Japanese stock futures were little changed after the Federal Reserve cut its estimates for U.S. economic growth and expanded its Operation Twist stimulus program amid a slowdown in hiring.  American Depositary Receipts of Komatsu Ltd. (6301), a Japanese construction machinery maker, slid 0.6 percent. Olympus Corp. (7733) may be active after President Hiroyuki Sasa said the company is considering raising about 50 billion yen ($633 million) to boost capital that declined by more than half after the Japanese camera maker admitted to a 13-year accounting fraud. ADRs of Woodside Petroleum Ltd. (WPL), Australia’s second-biggest oil and gas producer, declined 0.7 percent as crude fell to an eight-month low.

Beef export volumes lag 2011 record levels

Beef export volumes lag 2011 record levels
U.S. beef exports set record highs in 2011 for both volume and value. The U.S. exported 2.8 billion pounds of beef in 2011, 21% more than in 2010 and almost 11% above the previous record set in 2003. The value of beef exports at $4.6 B was up $1.2 B (34%) compared to last year...

Relevant trading-focused information authored by key players in the futures, options and forex industries

Inside Futures: Relevant trading-focused information authored by key players in the futures, options and forex industries
July sugar closed up 61 points at 21.47 cents yesterday. Prices closed near the session high yesterday, hit a fresh seven-week high and scored a bullish "outside day" up on the daily bar chart. The key "outside markets" were bullish for sugar yesterday as the U.S. dollar index was sharply lower and crude oil prices were higher. The recent big gains have given the bulls good upside near-term technical momentum. Bulls' next upside price breakout objective is to push and close prices above solid technical resistance at 22.50 cents. Bears' next downside price breakout objective is to push and close prices below solid technical support at 19.75 cents. First resistance is seen at yesterday's high of 21.60 cents and then at 22.00 cents. First support is seen at 21.00 cents and then at yesterday's low of 20.63 cents.

U.S. Grain Exports Seen Highest in Five Years by SSY

U.S. Grain Exports Seen Highest in Five Years by SSY - Bloomberg
Combined U.S. exports of wheat, coarse grains and soybeans are poised to reach the highest level since 2007 in the fourth quarter after ample harvests, said Simpson, Spence & Young Ltd.  Shipments will come to 42.6 million metric tons, the London-based shipbroker said in a report e-mailed today. Bumper crops of corn, wheat and soybeans will lift exports by 12 percent from the prior period to 131.2 million tons for the 2012-13 marketing year through next June, it said, citing figures from the U.S. Department of Agriculture. That would still fall short of the 134.5 million tons shipped in 2010-11, the report showed.

Oil Falls After U.S. Supplies Climb to Most Since 1990

Oil Falls After U.S. Supplies Climb to Most Since 1990 - Bloomberg
Oil dropped to an eight-month low after the Energy Department reported that U.S. crude inventories climbed to the highest level in 22 years.  Brent crude in London tumbled to an 18-month low. Futures in New York declined 2.7 percent after the department said supplies rose 2.86 million barrels to 387.3 million last week, the highest level since July 1990. The decline accelerated after Federal Reserve policy makers lowered their outlook for growth and employment.

Indiana corn crop is at a crisis

Indiana corn crop is at a crisis Latest News - Editorial, Grain & Cattle Markets, Current Stories
Impacts of drought in Indiana are getting serious for crop producers.  All crops are suffering, but corn is nearing its pollination phase when dry weather can quickly reduce yield potential. A few southern Indiana cornfields have started pollinating, with the U.S. Department of Agriculture indicating that 2 percent of the state’s corn was silking as of June 17.  Yield potential is likely wilting along with the parched crops. At the start of the growing season, Purdue estimated Indiana corn yields to average 166 bushels per acre. There is no precise way to determine actual yield potential while the crop is still this early in the growing season. But the USDA’s evaluation of crop conditions three weeks ago showed that only 8 percent of Indiana corn was in “very poor” and “poor” condition, the lowest two of five categories. In the most recent report, released June 18, that had grown to 24 percent. The decline in Indiana corn conditions in the past week are among the largest in the last decade.

Softs futures dip ahead of Fed; cotton mixed on short covering

Softs futures dip ahead of Fed; cotton mixed on short covering By Forexpros
U.S. soft futures were lower during early U.S. morning trade on Wednesday, pausing after Tuesday’s sharp gains, as investors awaited the outcome of a policy-setting meeting by the Federal Reserve later in the day before pushing prices higher. Cotton prices were mixed, with the front-month contract rising to a six-week high, while the December contract slumped 2% amid ongoing short-covering.  Meanwhile, sugar and coffee futures consolidated the previous day’s large gains...

Hong Kong Exchanges' Bid For LME Will Give China More Power In Global Commodity Trading

Hong Kong Exchanges' Bid For LME Will Give China More Power In Global Commodity Trading - Forbes
Last week’s bid by the Hong Kong Exchanges (HKE) for the London Metal Exchange (LME) flew under the radar, but its underlying importance is paramount.  In the most expensive bid ever for an exchange, HKE is looking to acquire the world’s largest metals market place for more than $2 billion, shifting the global hub for metals trading to the East.Furthermore, as China gradually becomes the world’s most important player in the gold and commodities markets, it will strengthen its grasp on the global gold trade, which it set out to do in its latest Five Year Plan.  As the world economy muddles through, China is consolidating its international position in the world of financial markets.
In what Morgan Stanley has called an “extremely expensive” bid, HKE reached an agreement to buy all of LME’s shares for 1.39 billion pounds (about $2.15 billion), or 107.6 pounds per share.  Hong Kong outbid major players like NYSE Euronext, the CME Group, and especially the ICE to buy the LME, one of the last member-owned exchanges, founded in 1877; the transaction still requires the approval of the U.K.’s financial regulator, the FSA.  Why would the Hong Kong Exchanges pay so much, about 160 times net income (compared with 66 times for the CME’s bid for CBOT) for the LME?..

Gold takes cautious tone ahead of Fed announcement

Gold takes cautious tone ahead of Fed announcement
After climbing 2.3% last week, gold futures traded down by 0.3% this week as of Tuesday. The initial market rally fizzled out quickly despite the fact that the Greek re-elections produced a pro-bailout and pro-Euro outcome, as investors turned their attention to the rising borrowing costs in Spain and Italy. The Spanish banking woes caused the 10-year Spanish Government Bond yield to rise 28bp to 7.16%, the EUD/USD to fall 0.5%, and the Stoxx to drop 1.17% on Monday. The yield on the one-year Spanish T-bill yield surged to 5.074% at the Tuesday auction, a rise of 210 bp since the last auction on May 14.

Euro, growth currencies supported by Fed easing bets

FOREX-Euro, growth currencies supported by Fed easing bets | Reuters
The euro rose against the dollar on Wednesday, along with growth-linked currencies on speculation the U.S. Federal Reserve will adopt further monetary stimulus, although any disappointment would leave them vulnerable to a selloff.  The euro also gained some support from signs that Greek parties may be close to forming a coalition government and expectations that euro zone policymakers could take quick steps to lower borrowing costs for Spain and Italy.  Strategists said the Fed's policy decision due later on Wednesday would take centre stage and the common currency could be rangebound between $1.26 and $1.2750 in the run up to it.