Economic Buzz: UK Annual Nationwide Housing Prices Grow 1.9% In June

On an annual basis UK Nationwide Housing Prices increased 1.9% in June, after rising 1.1% previous month, Nationwide revealed on Friday. This result is almost in line with projections of +2%. Month-over-month Nationwide Housing Prices increased 0.3% in June, following a 0.4% rise in May, as expected.
Source by Commodity Insights

Economic Buzz: Germany Annualized May Retail Sales Up 0.40%

Statistisches Bundesamt Deutschland informed on Friday that German Retail Sales rose 0.8% in May, compared with the 0.1% drop in April and above forecasts of +0.2%. On an annual basis German Retail Sales rose 0.4% in May, after growing 2.7% in April and below expectations of increasing 0.6%.
Source by Commodity Insights

Commodities Buzz: Sugar Crushing Activity Losing Pace In Brazil

Brazilian Sugar industry officials highlighted some worries over the cane output in the country's main producing region and helped provide a floor under the sugar prices. Mills in Brazil's Centre South region, responsible for some 90% of the country's sugar output, produced 1.78m tonnes of sugar in the first half of this month, cane industry group Unica said. The output is easing due to rain delays, and highlighted the growing appeal of turning cane into ethanol instead.
While a 30% jump on output in the first half of June 2012, when crushers suffered severe rain delays, the figure was below the 1.85m tonnes produced in the second half of May, and the 2.07m tonnes produced in the first half of May, the strongest period for manufacturing the sweetener so far in 2013-14.
Besides slowing cane volumes - which came in at 35.1m tonnes, some 5m tonnes less than mills achieved when running at full tilt in the first half of May - the rains also lowered the concentrations of sugars in cane. Sugar levels fell to 125.3 kilogrammes per tonne of cane, from 132.81 kilogrammes per tonne in late May, according to Unica.
New York Benchmark raw sugar futures had slipped to a three-year low of 16.48 cents per pound in the middle of June but have witnessed some bargain buying thereafter. The latest updates from Unica could help it find a floor and pare some of the excessive losses seen in last few moths.
Source by Commodity Insights

Economic Buzz: German Unemployment Rate Eases In May

According to results of the labour force survey, the number of unemployedamounted to 2.25 million in May 2013. It was down by 106,000 persons or 4.7 % onMay 2012. Compared with April 2013, the number of unemployed decreased by 24,000people or 0.9%. When adjusted for seasonal and irregular effects, the number ofunemployed amounted to 2.27 million. The adjusted unemployment rate was 5.3% against5.40% last month.
Source by Commodity Insights

Commodities Buzz: Mining Giant Cuts Jobs On Falling Coal Prices, Weak Demand Outlook

Glencore Xstrata has unleashed a massive job cuts in its coal mining operations in Australia as falling coal prices, higher costs, oversupply and subdued demand take their toll. The mining giant said today that it was cutting back coal production at its Newlands and Oaky Creek mines, which would lead to a loss of about 450 jobs by the end of the year. Against a backdrop of lower coal prices, high input costs and the strong Australian dollar, the decision to cut production at the mining operations has been taken to maintain viability in a challenging market, Glencore Xstrata said in a statement. This is a difficult decision, but one that needs to be taken in the current challenging economic conditions,'' Glencore Xstrata said. A lot of jobs have been lost across the country in past weeks as resource companies respond to weaker commodity prices and high costs. Australian Thermal coal prices have slipped sharply in last few months and currently linger around $90 per tonne, down around 9% on the year. Source by Commodity Insights

Indian Copper Opened Lower, China Demand Uncertainty Continues

Copper......

Copper opened lower on MCX as was expected. The markets continued to remain trading in disparity from its foreign counterpart LME. The LME three month prices were trading at $ 6727 per tonne, up from $ 6715 per tonne. Meanwhile, MCX Copper June contract was seen trading at Rs 407.7 per kg, down 0.27 percent. The rise of Rupee is the cause of decline in Copper. Indian Rupee was last seen exchanging hands at 60.53 against the Dollar, up from 60.72 on Wednesday. Dollar was at 1.3022 against the Euro. Excessive credit growth in China has made markets nervous and calls of reassurances from Peoples Bank of China have been taken lightly by the traders. Chinese premier bank said this week that it was providing short term assistance to institutions that were facing cash crisis. Source by Commodity Insights

Economic Buzz: German Consumer Confidence Forecasts Higher For July

German consumers continued to be in an optimistic mood at the onset of  summer.Economic and income expectations increased further, but willingness to buy fellslightly at an extremely high level. Following a value of 6.5 points in June,the overall indicator is forecasting 6.8 points for July. Optimism appears to beunbroken. The income outlook of Germans has improved further from an alreadyhigh level on account of the stable employment situation and good collectivebargaining agreements, which have also benefited economic expectations . Incontrast, willingness to buy dropped slightly this month, but still remained atan extremely good level. The upward trend in the consumer climate is alsoenhanced by the continually falling propensity to save, which has reached arecord low.
Source by Commodity Insights

Oil Slippery Ahead Of EIA Report

Oil......
Crude oil futures were trading on a slippery note ahead of the Energy Information Administration report to be released later today. The sentiments were also weakened after the strong US data yesterday increased the chances of early windup of the US monetary stimulus program.
Crude for August delivery is trading down 66 cents at $94.65 a barrel on New York Mercantile Exchange. Oil futures finished Tuesday’s regular session higher by 14 cents, or 0.1%, to settle at $95.32 a barrel, after better-than-expected reports on the housing sector. Also, durable-goods orders in May rose 3.6%.
The contract lost ground after the American Petroleum Institute, in its weekly report on U.S. commercial crude-oil inventories, said supplies were unchanged in the week ended June 21. A Platts survey of analysts had forecast a decline of 2 million barrels.
A more widely watched report from the Energy Information Administration is slated for release at 10:30 a.m. U.S. Eastern time. Last week, the EIA reported an unexpected increase of 300,000 barrels in oil stockpiles to 394.1 million barrels. At that level, the EIA said, inventories were above the upper limit of the average range for this time of year.
The U.S. dollar rose against rivals on Tuesday after a string of strong economic data reinforced expectations the Federal Reserve will move to slow its program of asset purchases later this year.
Strength in the US dollar also pressurized oil futures. The ICE dollar index which measures the U.S. unit against six other major currencies, rose to 82.553 from 82.412 late Monday in North America.
MCX July crude oil futures may open today’s session near Rs 5650 levels with support around Rs 5600 levels. The U.S. Commerce Department is due to release its third estimate of gross domestic product for the first quarter today.
Source by Commodity Insights

Gold Gets Hammered On Strong US Data

Gold.........

Gold futures got hammered further in the Asia electronic session today on strong US economic data which strengthened the US dollar and also supported the early tapering of U.S. monetary stimulus measures.
The U.S. dollar rose against rivals on Tuesday after a string of strong economic data reinforced expectations the Federal Reserve will move to slow its program of asset purchases later this year.
Several housing reports flowed in on Tuesday. U.S. home prices rose 2.5% in April, the biggest monthly increase ever, according to S&P/Case-Shiller data. A home-price report by the Federal Housing Finance Agency showed a gain, albeit more modest, of 0.7% in April adjusted for seasonality. New-home sales rose 2.1% in May to an annual rate of 476,000, their highest rate since mid-2008.
Additionally, durable-goods orders increased in May for the second month in a row, rising 3.6% to a seasonally adjusted $231 billion. Consumer confidence in June surged to a reading of 81.4, its highest level in more than five years.
The ICE dollar index which measures the U.S. unit against six other major currencies, rose to 82.553 from 82.412 late Monday in North America. The euro— which makes up more than half of the comparative basket used for the ICE dollar index by weighting — fell to $1.3095 from $1.3122.
Gold for August delivery slipped to as low as $1242.6 an ounce so far in the session today. Yesterday, it ended lower by $2 to close at $1,275.10 an ounce.
MCX Gold futures have however been cushioned by the extra soft Rupee. The August bullion futures may open today’s session near Rs 26200 levels with support around Rs 26000 levels. So far in the month of June the Indian Rupee has tumbled by more than 5% whereas the gold futures have shed just 3%.
Source by Commodity Insights

Economic Buzz: Core U.S Durable Good Orders Rise 0.70%

New orders for manufactured durable goods in May increased $8.0 billion or 3.6 percent to $231.0 billion, the U.S. Census Bureau announced today. This increase, up three of the last four months, followed a 3.6 percent April increase. Excluding transportation, new orders increased 0.7 percent, after surging 1.50% in the previous month. Excluding defense, new orders increased 3.5 percent.
Source by Commodity Insights