> Finance & Stock Exchange > Raw materials > Non ferrous metals
COMMODITIES-Oil breaks $122; corn at new record too
Reuters: [2008-05-06 23:29:00]
By Barani Krishnan
NEW YORK, May 6 (Reuters) - The bull run in U.S. energy
markets showed little signs of slowing on Tuesday, with crude,
gasoline and heating oil all hitting record highs before ending
off their peaks, fueling a rally in other commodities too.
U.S. corn futures hit new peaks as well, leading wheat to a
higher close. [GRA/] Precious metals such as gold and silver
rose but modestly. [GOL/] Copper bucked the trend with a lower
close after Monday's record high in New York. [MET/L]
"I think oil is just pulling everything higher and because
of that, all these commodities have turned around again," said
Edward Meir, energy and metals analyst at commodities brokerage
MF Global in New York.
Another positive factor was the dollar's weakening for a
second straight day after being up in two previous sessions on
speculation that the U.S. Federal Reserve may be ready to stop
interest rate cuts which began in September. [USD/]
"The dollar was giving the bears some hope last week when
it rallied. That seems to have stalled and we seem to be back
to the original kind of trading strategy, which is go short the
dollar and long the commodities," Meir said.
Crude <CLc1> on the New York Mercantile Exchange, or NYMEX,
settled up $1.87 at $121.84 a barrel after touching a record
$122.73, extending a rally that has doubled prices over the
past year. [O/R]
Analysts attributed the run-up mainly to Iran's refusal to
accept inspections of its nuclear program which the West fears
could be linked to weapons. Iran is also the world's fourth
largest oil exporter. [ID:nL05474341]
Nigerian disruptions from militant attacks and a strike
have also underpinned prices since late April, along with the
weaker dollar and growing demand from emerging markets like
China and India.
The mounting supply problems and strong demand prompted
Goldman Sachs to forecast oil could reach $200 a barrel within
the next two years.[ID:nL06914488]
NYMEX heating oil for June ended up 4.70 cents, or 1.42
percent, at $3.3535 after an intraday record of $3.3712.
RBOB gasoline for June, settled up 5.26 cents, or 1.72
percent, at $3.1055 on NYMEX, after an all-time high of
$3.1260.
U.S. corn surged 3 percent as the pace of seeding in the
United States, the world's top producer and exporter of the
grain used in feed and ethanol, was the slowest in a decade.
Spring rains across wide swaths of the Midwest grain belt,
which is home to the bulk of corn grown in the United States,
have delayed planting. As a rule of thumb, farmers need to seed
the crop by May 15 to avoid yield loss.
Benchmark corn for May delivery <CK8> on the Chicago Board
of Trade closed up 12-3/4 cents at $5.94-3/4 per bushel. The
July <CN9> 2009 contract reached a record high of $6.60-3/4 per
bushel during Tuesday's session before ending up 10 cents at
$6.49.
CBOT wheat for May <WK8> closed up 13-1/2 cents at $8.06
per bushel.
The Reuters-Jefferies CRB index <.CRB>, which tracks 19
commodity futures, was up 1.13 percent at 418.54.
(Editing by Marguerita Choy)
((barani.krishnan@thomsonreuters.com; +1 646 223 6192; Reuters
Messaging: barani.krishnan.reuters.com@reuters.net))
For the latest news and prices, click on the codes in
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<0#W:> <0#C:> <0#S:> <0#SM:> <0#BO:>
COMEX gold futures <0#GC:>
COMEX copper futures <0#HG:>
CME livestock futures <0#LC:> <0#FC:>
CME lumber futures <0#LB:>
NYBOT softs, cotton and juice futures
<0#KC:> <0#SB:> <0#CC:> <0#CT:> <0#OJ:>
NYMEX crude oil <0#CL:>
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NYBOT RJ/CRB futures <0#CR:> <0#CI:>
RELATED NEWS AND OTHER TOPICS All commodities news [C]
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Precious metals news GOL All metals news [MTL]
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SPEED GUIDES COMMODS REUTERS
Keywords: MARKETS COMMODITIES
UPDATE 4-High-flying crude gives boost to Toronto stocks
Reuters: [2008-05-06 23:10:00]
(Adds details, quotes)
By Leah Schnurr
TORONTO, May 6 (Reuters) - Oil and gas companies led the way higher for the Toronto Stock Exchange on Tuesday, helping the main index climb nearly 1 percent as crude oil prices notched another record high.
Suncor Energy <SU.TO> was among the biggest gainers, up C$4.62, or 4 percent, at C$121.12 as the price of oil flew up over $122 a barrel on a weaker U.S. dollar and concerns over supply.
The Toronto market's heavily weighted energy sector jumped 3.3 percent. Canadian Natural Resources <CNQ.TO> was up C$4.05, or 4.6 percent, at C$92.00, and Canadian Oil Sands Trust <COS_u.TO> added C$3.68, or 8.3 percent, to C$48.18.
Crude settled up $1.87 at $121.84 a barrel, easing back from a record $122.73 reached earlier in the day. However, Goldman Sachs forecast oil could hit $200 a barrel within the next two years.
"How high can it go? Who knows," said Andrew Martyn, portfolio manager at Davis-Rea.
The S&P/TSX composite index <.GSPTSE> closed up 139.96 points, or 0.98 percent, at 14,414.30 with half its 10 main sectors higher.
The materials sector, home to resource issues, rallied 1.2 percent, while the base metals mining subindex gained 2.4 percent, pulled up by oil's momentum. Teck Cominco <TCKb.TO> rose C$1.48, or 3.2 percent, to C$48.18.
"The mining sector, the gold sector also got boosted, meaning that the whole commodities game seems to be back for who knows how long," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.
"We keep saying it's a fad, but (the oil price) comes down and starts to move back up," said Nakamoto, noting that ultimately it's underlying supply and demand that will make a price level sustainable.
Methanex <MX.TO> shares jumped C$3.02, or 12.4 percent, to C$27.40 after the methanol supplier upped its quarterly dividend by 11 percent and said it will buy back up to 10 percent of its common stock.
Fertilizer company Potash Corp of Saskatchewan <POT.TO> was up C$3.03, or 1.5 percent, at C$199.39, and competitor Agrium <AGU.TO> rose C$2.52, or 3 percent, to C$86.75.
Sun Life Financial <SLF.TO> weighed on the index after the insurer warned of a difficult year ahead as it reported that credit market troubles and a strong Canadian dollar stung its operating earnings.
Sun Life finished down C$1.76, or 3.6 percent, at C$47.44, while the financial sector overall gave up 0.5 percent.
Also on the downside, BlackBerry maker Research In Motion <RIM.TO> slid C$2.37, or 1.8 percent, to C$132.25.
Market volume was 393 million shares worth C$7.6 billion. Advancers outpaced decliners 890 to 693. The blue chip S&P/TSX 60 index <.TSE60> closed up 8.71 points, or 1.03 percent, at 855.12.
On Wall Street, stocks rallied after U.S. home finance company Fannie Mae <FNM.N> sought to reassure investors over the outlook for the credit and housing markets.
The Dow Jones industrial average <.DJI> rose 51.29 points, or 0.4 percent, to 13,020.83, while the Nasdaq composite index <.IXIC> was up 19.19 points, or 0.78 percent, at 2,483.31. ($1=$1.00 Canadian) (Editing by Rob Wilson) ((leah.schnurr@thomsonreuters.com; +1 416 941 8056; Reuters Messaging: leah.schnurr.reuters.net@reuters.com))
Keywords: MARKETS CANADA STOCKS
Keywords: MARKETS CANADA STOCKS
UPDATE 3-Toronto stocks boosted by soaring crude price
Reuters: [2008-05-06 22:39:00]
(Updates closing numbers, adds details)
TORONTO, May 6 (Reuters) - Oil and gas companies led the way up for the Toronto Stock Exchange on Tuesday, helping the main index climb nearly 1 percent as crude oil prices notched another record high.
Suncor Energy <SU.TO> was among the biggest gainers, up C$4.62, or 4 percent, at C$121.12 as the price of oil flew up over $122 a barrel due to a weaker U.S. dollar and concerns over supply.
The Toronto market's heavily weighted energy sector jumped 3.3 percent. Canadian Natural Resources <CNQ.TO> was up C$4.05, or 4.6 percent, at C$92.00, and Canadian Oil Sands Trust <COS_u.TO> added C$3.68, or 8.3 percent, to C$48.18.
Crude settled up $1.87 at $121.84 a barrel, easing back from the record $122.73 it reached earlier in the day.
The S&P/TSX composite index <.GSPTSE> closed up 139.96 points, or 0.98 percent, at 14,414.30 with half of its 10 main sectors higher.
The materials sector, which houses resource shares, rallied 1.2 percent, while the base metals mining subindex gained 2.4 percent, pulled up by oil's momentum. Teck Cominco <TCKb.TO> rose C$1.48, or 3.2 percent, to C$48.18.
Methanex <MX.TO> shares jumped C$3.02, or 12.4 percent, to C$27.40 after the Methanol supplier upped its quarterly dividend by 11 percent and said it will buy back up to 10 percent of its common stock.
Fertilizer company Potash Corp of Saskatchewan <POT.TO> was up C$3.03, or 1.5 percent, at C$199.39, and competitor Agrium <AGU.TO> rose C$2.52, or 3 percent, to C$86.75.
Sun Life Financial <SLF.TO> dragged on the index after the insurer warned of a challenging year ahead as it reported credit market troubles and a strong Canadian dollar stung its operating earnings. Sun Life finished down C$1.76, or 3.6 percent, at C$47.44, while the financial sector overall gave up 0.5 percent. ($1=$1.00 Canadian) (Reporting by Leah Schnurr; Editing by Peter Galloway) ((leah.schnurr@thomsonreuters.com; +1 416 941 8056; Reuters Messaging: leah.schnurr.reuters.net@reuters.com))
Keywords: MARKETS CANADA STOCKS
. Keywords: MARKETS CANADA STOCKS
PRESS DIGEST-Australian Business News - May 7
Reuters: [2008-05-06 22:26:00]
Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
Gavin O'Reilly has taken over as the new chairman of media group APN News & Media <APN.AX>. Mr O'Reilly is chief operating officer of Irish media group Independent News & Media <INWS.I> which is 26.7 percent owned by his father, Sir Anthony O'Reilly. Independent News has a 40.7 percent stake in APN. 'We are long-term, strategic shareholders [in APN],' Mr OReilly said yesterday at APN's annual meeting, where he formally took the reins from outgoing chairman James Parkinson. Page 60.
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Wine and beer group Foster's <FGL.AX> saw profit at its North American business drop 32 percent to A$98 million in the first half of 2007-08, according to data compiled by marketing information firm ACNielsen. Among the company's worst-performing brands in the United States were Rosemount and the California-made Beringer. Foster's blamed slackening consumer spending in the US, which caused a 1.1 percent fall in broader wine market growth in that country in the four weeks ended April 19. Page 61.
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Fine paper merchant PaperlinX <PPX.AX> yesterday shut down a key pulp mill in Victoria for six weeks for maintenance and development work. The Maryvale mill is due for a planned A$310 million upgrade early next year. According to a PaperlinX spokesman, the outcome of the shutdown will determine if the upgrade will be completed on time, and whether projected savings will be achieved. Broker JPMorgan says successful completion of the Maryvale project will 'create a powerful step change in earnings for PaperlinX.' Page 61.
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Diversified industrial group Futuris Corp <FCL.AX> has abandoned its plans to offload its 43 percent stake in Australian Agricultural Company (AACo) <AAC.AX>. 'None of the proposals arising from the sale process have certainty of execution or timing,' said Futuris chief executive Les Wozniczka. It is understood that potential private buyers of AACo were held back by the rising cost of debt in the wake of the global credit crunch. Futuris shares fell 5 cents to A$2.11 yesterday, while AACo shares dropped 6 cents to A$3.13. Page 61.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Banking and insurance group Suncorp Metway <SUN.AX> has announced a A$400 million raising in a convertible preference share (CPS) offer. Suncorp chairman John Story said yesterday the raising would help finance asset growth and reduce existing debt. The CPS securities, priced at A$100 each, will pay investors floating rate, quarterly, non-cumulative dividends. Suncorp expects the securities to receive investment-grade credit ratings of A- from Standard & Poors and A2 from Moodys. Page 37.
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IBM Australia <IBM.N> yesterday announced a 222 percent rise in profit for calendar 2007 to A$196.7 million on revenue of A$3.96 billion. IBM said a new executive team and strong performances by its services and software divisions helped pull the company out of a lacklustre patch in the previous two years. 'With the [new] leadership team in 2006, we came together and said if we represent ourselves to clients as one IBM, all the internal stuff will work itself out,' managing director Glenn Boreham said. Page 37.
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The ACP Magazines division of PBL Media will launch an Australian version of the successful British title Good Food in partnership with BBC Magazines. 'This will be a unique addition to the Australian food magazine market, fusing the strength of an internationally respected UK brand with Australian flair, expertise and individuality,' said ACP senior publishing executive Phil Scott said yesterday. The magazine will be launched next month at the Sydney Good Food Show. Page 37.
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Former Formula One Minardi team owner Paul Stoddart has sold his stake in charter airline OzJet to airfreight operator HeavyLift Cargo Airlines. OzJet chief executive Willie ONeill said the 'multimillion-dollar deal' would help improve the carrier's financial situation and enable it to boost investment. OzJet operates services to Norfolk Island, between Perth and Derby and between Perth and Bali in Indonesia. Page 37.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Troubled shopping centre group Centro Properties <CNP.AX> is today expected to seek what could be the last extension to its A$4.2 billion debt deadline. Chief executive Glenn Rufrano was last night understood to be in talks with bankers to secure a deal. One of the lenders, St George Bank <SGB.AX>, said it was confident Centro would get an extension despite the reluctance of problem-hit German bank WestLB to give Centro more time. Centro's main lenders include ANZ Bank <ANZ.AX>, Commonwealth Bank <CBA.AX>, National Australia Bank <NAB.AX> and JPMorgan <JPM.N>. Page 22.
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Insurer QBE <QBE.AX> extended for the second time its A$8 billion takeover offer for troubled rival Insurance Australia Group (IAG). The new deadline was set at 5 pm on May 19. QBE is offering IAG shareholders 0.142 of its shares in addition to 70 cents cash for every IAG share. 'The proposal has been extended to allow stakeholders more time to consider the impact of IAG's profit downgrade last week and the value of [QBE's] shares,' said QBE chief executive Frank O'Halloran. Page 23.
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One of the Commonwealth Banks listed office and retail trusts, Commonwealth Property Office Fund <CPA.AX>, announced a 4.6 percent rise in overall asset values for the three months to March 31. 'Although we expect to see a softening in demand, supply generally remains well in check to at least 2010,' said fund manager Charles Moore. He said the rising cost of debt finance and stricter lending policies being adopted by lenders may cause several development projects to be postponed. Page 23.
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A veteran Singapore Airlines executive, Chin Sak Hin, has been appointed chief financial officer of Singapore-based Tiger Airways, which launched domestic services in Australia in November. Tiger rejected speculation that the appointment signals greater control by Singapore Airlines <SIAL.SI>, which has a 49 percent stake in the low-cost carrier. '[Mr Chin] will no longer have a position with Singapore Airlines Group,' said a Tiger spokesman. Mr Chin is considered a close confidant of Singapore Airlines chief executive Chew Choon Seng. Page 23.
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THE AGE (www.theage.com.au)
Monash University management expert Peter Gahan warned that the skills shortage meant Australian companies could lose their competitive edge if they failed to invest in staff training. Professor Gahan said yesterday that some companies 'see the skills shortage as endemic and at a critical point [but] if it is so important why is it so costly for them to invest in this kind of thing?' His comments came in the wake of an Australian Industry Group report, which showed 60 percent of chief executives thought the skills shortage was serious. Page B2.
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Australias trade deficit narrowed in March with a 4 percent rise in exports to A$19.2 billion, Australian Bureau of Statistics figures show. The trade gap shrank to A$2.91 billion from a record A$3.46 billion in February as more iron ore, coal and wheat was shipped overseas. Exports make up about 20 percent of the nations gross domestic product. Page B2.
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The National Australia Bank May farm outlook report has predicted a 69 percent jump in Victoria's wheat production in 2008-09 to 3.1 million tonnes, despite continuing water shortages in some regions. NAB agribusiness economist Frank Drum forecast a 72 percent increase in winter crop output to 38.8 million tonnes, with wheat output expected to touch 25 million tonnes. Page B3.
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BHP Billiton <BHP.AX><BLT.L> said yesterday that structural problems at its A$1.16 billion Neptune oil project in the Gulf of Mexico would cause further delays and cost increases. The company has a 35 percent stake in the project, which it operates for a consortium including Woodside Petroleum <WPL.AX> and Marathon Oil Company <MRO.N>. BHP said it hoped to bring Neptune on-stream by the second quarter of the year, but the platform would require 'remediation to reinforce certain structural components in the hull's pontoons.' Page B7. -- ((Sydney Newsroom +61-2 9373 1800; sydney.newsroom@reuters.com)) Keywords: DIGEST AUSTRALIA BUSINESS
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Toronto stocks yanked higher by record oil price
Reuters: [2008-05-06 22:05:00]
TORONTO, May 6 (Reuters) - Oil and gas companies led the way up for the Toronto Stock Exchange on Tuesday, helping the main index climb more than 100 points as crude spiked to another record high.
The S&P/TSX composite index <.GSPTSE> unofficially closed up 142.75 points, or 1 percent, at 14,417.09. (Reporting by Leah Schnurr; Editing by Peter Galloway) ((leah.schnurr@thomsonreuters.com; +1 416 941 8056; Reuters Messaging: leah.schnurr.reuters.net@reuters.com))
Keywords: MARKETS CANADA STOCKS
Next: UPDATE 2-Subcontractors start resuming Codelco operations