Speculators switch net long sugar on rally

UPDATE 1-Speculators switch net long sugar on rally - CFTC | Reuters
Speculators switched to a net long position in ICE raw sugar contracts in the week to June 19 for the first time in seven weeks, as the futures market soared to a one-month high, U.S. Commodity Futures Trading Commission data showed on Friday.  The noncommercial traders added 3,217 lots, moving to a net long position of 1,988 lots in raw sugar futures and options trading on ICE Futures U.S., the data showed.
They also turned net long in cotton, after holding a net short position for the past five weeks, adding 9,956 contracts to be net long 7,900 contracts, the CFTC said.  The switch took place as the benchmark December cotton futures contract jumped 8 percent to a four-week high.

Dollar Set for Weekly Gain on Signs Global Growth Slowing

Dollar Set for Weekly Gain on Signs Global Growth Slowing - Businessweek
The dollar headed for its first advance in three weeks versus the euro after a report showed German business confidence dropped to the lowest in more than two years, fueling demand for the safety of the U.S. currency.  The yen weakened against most of its 16 major peers as Japanese lawmakers in the lower house prepared to vote on a bill to double sales tax. Higher-yielding currencies rebounded against the dollar as equities advanced, led by financial shares even as Moody’s Investor Service downgraded 15 global banks. Canada’s dollar gained as stocks rose...

Gold posts 3.5 pct weekly drop on deflation fear

PRECIOUS-Gold posts 3.5 pct weekly drop on deflation fear | Reuters
Gold rebounded on Friday after the last session's sell-off, but the precious metal was virtually flat for the year to date and posted a weekly drop of nearly 4 percent on deflation worries and a lack of aggressive Federal Reserve stimulus. In early trade, gold briefly crossed into negative territory for 2012, extending Thursday's 2.5 percent drop. Investors were frustrated by the Fed's decision this week to lengthen its "Operation Twist" program aimed at lowering long-term interest rates instead of a new outright bond purchase program. Inflation fears have helped fuel several years of strong gains for gold, but investors are starting to worry about deflation after reports this week showed signs of slowing economic activity around the world.

Swiss haven chagrined as commodities traders look East

Swiss haven chagrined as commodities traders look East | Reuters

Switzerland's low corporate taxes, business-friendly regulations and reputation for discretion have attracted multinational commodities trading firms "as a dunghill attracts flies".   This is how The Berne Declaration - a Swiss NGO which campaigns to ensure local companies act responsibly - describes Switzerland's appeal in a new book that aims to shed light on the methods of an industry that traditionally prefers to conduct its business away from the gaze of regulators and journalists.

Crude at Lowest in 8 Months as Inventories Rise

OIL FUTURES: Crude at Lowest in 8 Months as Inventories Rise - WSJ.com
U.S. oil futures sank to their lowest level in eight months Wednesday after the government said oil inventories rose to their highest level since 1990, while gasoline demand in the U.S. fell sharply.
Crude also was weighed down by the Federal Reserve's decision to extend "Operation Twist" while stopping short of more aggressive measures.  Light, sweet crude for July delivery expired $2.23, or 2.7%, lower at $81.80 a barrel on the New York Mercantile Exchange, the lowest finish for the ...

Long bonds fall a point in price

Long bonds fall a point in price | Reuters

U.S. 30-year Treasuries bond prices fell a full point on Friday as a stronger stock market and $99 billion in supply scheduled for next week reduced demand for the bonds.  The bonds' yields increased to 2.74 percent, up from 2.69 percent late on Thursday.

Oil, U.S. stocks recover from Thursday's losses

Oil, U.S. stocks recover from Thursday's losses | Reuters

Oil bounced from 18-month lows on Friday as investors shifted their focus to efforts to resolve Europe's debt crisis, while U.S. stocks rebounded from the second-worst decline of the year.  The euro firmed against the yen after the European Central Bank said it would accept lower-quality assets as collateral in a move to aid the region's shaky banks.  Investors worry that Europe's debt crisis is adding to the slowdown in global economic growth. European stocks fell after data showed a drop in German business sentiment.  The leaders of Germany, France, Italy and Spain agreed on Friday on a 130 billion euro ($156 billion) package to revive economic growth in Europe but split over issuing joint bonds to combat the euro zone's debt crisis.

U.S. Stock Futures Bounce, But Overseas Weakness Keeps Mood Cautious

U.S. Stock Futures Bounce, But Overseas Weakness Keeps Mood Cautious - WSJ.com
U.S. stock futures treaded higher, bouncing from the sharp losses in the previous session, but weakness in overseas markets in the wake of continued weak euro-zone data kept investors in a cautious mood.
Meanwhile, investors seemed to shrug off long-expected credit downgrades of many major global banks.
Dow Jones Industrial Average futures edged up 38 points, or 0.3%, to 12540. The Dow fell 250.82 points, or 2%, to 12573.57 ...

Commodities Extend Losses as Sentiment Continues to Sour

Commodities Extend Losses as Sentiment Continues to Sour - WSJ.com
Most commodity markets extended their downward march Friday as concerns over the global economy continued to weigh on market sentiment.  A downgrade of 15 banks by Moody's Investors Service late Thursday compounded the bearish mood that pervaded the previous session, tipping risk-related assets like copper and oil deeper into negative territory.  The London Metal Exchange's three-month copper contract hit a six-month low at $7,219.50 a metric ton early Friday, while the front-month August Brent contract on London's ICE Futures exchange fell 0.8% to $88.49 a barrel. European spot gold also hit a two-week low at $1,559.20 a troy ounce, before ...

SOFTS-Arabicas jump and raw sugar sinks, eyes on economy

SOFTS-Arabicas jump and raw sugar sinks, eyes on economy | Agricultural Commodities | Reuters
Arabica coffee sprang higher and raw sugar futures were hit by late speculative sales on Thursday in a mixed softs complex as investors mulled the glum economic outlook for the rest of this year.
The selling spree in sugar touched off possible sell stops while speculators in arabica coffee hit buy stops in their advance. Raw sugar investors were also bracing for next week's expiry of the spot July contract.

Copper hits 6-month low on shaky economic outlook

Copper hits 6-month low on shaky economic outlook | Reuters

Copper hovered near six-month lows on Friday as a firm dollar, weak German and U.S. data and a downgrade to some of the world's leading banks deepened concerns about the global economy and demand for raw materials.  Three-month copper on the London Metal Exchange extended losses into a third straight session, trading at $7,281 a tonne in official rings and touched a session low of $7,219.50, its weakest since December 19, 2011.  Investors have been retreating from riskier assets after China's factory sector shrank for an eighth straight month, business activity in the euro area contracted for a fifth month and U.S. manufacturing grew at its slowest pace in 11 months.

Gold Seen Cutting Weekly Drop as Europe Woes Spur Demand

Gold Seen Cutting Weekly Drop as Europe Woes Spur Demand - Bloomberg
Gold rose for the first time in this week in New York, paring this week’s loss, as Europe’s worsening debt crisis spurs demand for the metal as a hedge.  German business confidence fell to a two-year low in June, data today showed, while Spain’s 10-year borrowing costs rose above 7 percent this week for the first time in 15 years. Gold erased its gains for the year yesterday after the Federal Reserve on June 20 cut its forecast for 2012 U.S. growth and extended Operation Twist, an economic stimulus plan to buy longer-maturing debt.