Asia Commodity Day Ahead: Gold Dips First Week Since July on Equity Gain

The following are the top stories on metals, agriculture and shipping.

ECONOMIC EVENTS, AGRICULTURE REPORTS:

                                   Forecast  Prior     Time

                                                       （N.Y.）

U.S. Monthly Budget Statement AUG  -$96.0B -$103.6B     14:00

U.S. Export Inspections - Corn               38.05      11:00

U.S. Export Inspections - Soybeans           13.92      11:00

U.S. Export Inspections - Wheat              22.07      11:00

U.S. Crop Progress Report                               16:00

Metal Prices: （$/ton）

                 Last  % Chg RSI

Copper          7,486   -0.9  54

Aluminum        2,100   -0.2  49

Zinc            2,110   -2.0  52

Lead            2,185   -0.7  59

Nickel         22,500   -1.1  61

Tin            21,875   +0.8  63

Other Markets:

                      Last   % Chg % YTD

U.S. Dollar Index    82.776   +0.1  +6.3

Crude Oil            $76.45   +3.0  -3.7

Gold              $1,246.50   -0.4  +14

MSCI World Index   1,139.02   +0.2  -2.5

TOP STORY

Gold Has First Weekly Decline Since July After Equities Rally

Gold futures fell, capping the first weekly drop since late July, as a rebound in equities cut demand for the precious metal as a haven.

COMMODITY EXCLUSIVES:

Europe Herds May Shrink on Higher Feed Costs, Trade Groups Say

Europe’s swine and cattle herds may shrink next year if grain prices remain at current levels and continue to push up feed costs, farm-trade groups said.

Petropavlovsk’s IPO to Raise $370 Million, Terms Show （Update1）

Petropavlovsk Plc, Russia’s third-largest gold producer, is seeking to raise as much as $370 million by selling new shares in its iron-ore division in a Hong Kong initial public offering.

INDUSTRIAL METALS:

Copper Has First Weekly Drop in a Month on Signs of Waning Use

Copper fell, capping the first weekly drop in a month, on signs of slowing demand.

MINING:

BHP Potash Loan Syndication Draws More Than $45 Billion Sought

BHP Billiton Ltd.’s loan underwriters attracted demand in excess of the $45 billion sought to fund the miner’s bid for Potash Corp. of Saskatchewan Inc., a person familiar with the situation said.

Congo May Suspend Sales From Richest Tin Region, Official Says

Joseph Kabila, president of the Democratic Republic of Congo, is considering suspending sales from the country’s richest tin mining region, a provincial mines ministry official said today.

Vale Borrows $1.23 Billion in China to Buy 12 Ships （Update1）

Vale SA, the world’s largest iron-ore producer, will borrow $1.23 billion to buy ships from a Chinese shipyard as Asian demand for the steelmaking material increases.

Rwanda to Track Tin Exports to Curb ‘Conflict Minerals’ Trade

Rwanda will start tracking the sources of its tin-ore exports in response to international pressure to stop the trade in “conflict minerals” from central Africa, a mining official said.

PRECIOUS METALS:

Hochschild Rises in London on Peru Silver Mine Plan （Update1）

Hochschild Mining Plc, Peru’s second-largest silver producer, climbed to the highest in more than two years in London trading after saying a new mine may produce the equivalent of 11 million ounces of the metal a year.

International Monetary Fund Sells 10 Tons of Gold to Bangladesh

The International Monetary Fund, which set out a year ago to sell about 13 percent of its gold holdings, sold 10 metric tons to Bangladesh for $403 million.

AGRICULTURE:

World Wheat-Inventory Estimate Raised on Bigger Canada Crop

World wheat stockpiles will be 1.7 percent larger than forecast in August because of increased production in Canada and lower global use, the U.S. Department of Agriculture said.

Lumber Has Biggest Weekly Gain in Two Months on Economy Outlook

Lumber prices climbed, capping the biggest weekly gain in two months, on signs of optimism in the U.S. economy.

Cotton Closes at Highest Price Since 1995; Orange Juice Falls

Cotton futures rose, closing at the highest level since 1995, after the government said unsold supplies as of July 31 will be the smallest in 15 years in the U.S., the world’s biggest exporter. Orange juice declined.

Wheat Falls as U.S. Government Raises World Stockpiles Estimate

Wheat prices fell for the third time this week after the U.S. government unexpectedly raised its forecast for global stockpiles and boosted Canada’s production outlook.

Corn Extends Rally to 23-Month High on U.S. Supply Concerns

Corn futures rose, extending a rally to a 23-month high on speculation that the U.S. crop will be smaller than the government forecast after hot, dry weather reduced yields.

Soybean Futures Fall After USDA Raises U.S. Production Estimate

Soybeans fell the most in three weeks after the government said the U.S. crop will be 1.5 percent bigger than forecast a month ago and the largest ever.

SHIPPING:

Middle East Supertanker Rents Decline for Fourth Day （Update1）

Rental income from shipping Middle East crude oil to Asia, the world’s busiest route for supertankers, dropped for a fourth day as owners awaited the start of demand for vessels to load in October.

Baltic Index Climbs for Second Week on Grain-Demand Speculation

The Baltic Dry Index, a measure of shipping costs for commodities, rose for a second week on speculation that demand for iron ore and grains will strengthen in the fourth quarter.

ECONOMIES:

China $20 Billion Trade Surplus May Add Yuan Pressure （Update2）

China posted a third straight trade surplus of more than $20 billion in August even as imports leaped, highlighting friction with the U.S. over claims that the nation’s currency is undervalued.

Wholesale Inventories in U.S. Rose More Than Forecast （Update1）

Inventories at U.S. wholesalers rose in July by the most in two years as a rebound in demand prompted companies to add to stockpiles.

Labor-Market Woes in U.S. Prompt Reductions in Growth Forecasts

The U.S. economy will slow more than previously estimated through next year as elevated unemployment tempers consumer spending and companies trim investment plans, economists surveyed by Bloomberg News said.

OTHER MARKETS:

Treasuries Drop, U.S. Stocks, Oil Advance on Economic Optimism

Treasuries fell, sending 10-year yields to a one-month high, while U.S. and Asian stocks rose as an increase in American wholesale inventories and growth in Japan’s economy bolstered optimism in the global recovery.

Yen Falls as Higher U.S. Treasury Yields Fuel Demand for Dollar

The yen dropped against the dollar as the highest yields on 10-year U.S. Treasury notes in a month renewed international demand for U.S. assets as investors’ risk aversion declined.

Oil Rises the Most in Six Weeks as U.S. Midwest Pipeline Shuts

Oil rose the most in six weeks after a pipeline that carries Canadian crude to refineries in the U.S. Midwest was closed because of a leak.