India Rice Procurement Up 21 % On Chhattisgarh and Orissa Year - Dec 26, 2008

The Indian government has procured 143.27 lakh MT of rice so far in this year, which is 21 % more than what it had bought during the corresponding period last season. Though the procurement target for a year is 276 lakh MT, the government is confident of buying more rice in the 2008-09 season (October-September) owing to good remunerative price to farmers.

The Indian government has kept 15 lakh MT of rice in the strategic reserve last year and targets the same quantity this year as well for the reserve. Meanwhile, rice procurement in Punjab and Haryana has nearly completed with very little arrival of paddy in the mandis. But the purchases are in full swing in Andhra Pradesh, Uttar Pradesh, Chhattisgarh and Orissa.

Norilsk Nickel To Suspend Tati Operations In Botswana - Dec 26, 2008

As a result of the recent unforeseen furnace breakdown at the BCL Smelter in Botswana, to which 90% of the concentrate produced at Tati is trucked, the Tati operation in North East Botswana will be shut down for a period of 12 days whilst various options are being assessed.Tati mine is dependent on the BCL Smelter to process its concentrate and the smelter failure coupled

With a steep decline in nickel prices has led to the decision to curtail operations for the period commencing Wednesday 24th December 2008 to 5th January 2009, whilst Tati assesses various options to deal with this matter until such time as the BCL smelter has been repaired and is able to accept concentrate feed from Tati once again.

Tati, which is located 40 kilometres east of Francistown, has been conducting underground and opencast mining operations since the mid 1990's with ore mainly being trucked to and processed at BCL's Smelter operation. Tati has produced approximately 20,000 tons nickel contained in product over the last 12 months. This decision will not affect the company's long term view of operations within Botswana. The company is planning to place its employees on formal paid leave during this time.

Jeera Ncdex January Benchmark Future Was Traded At Plummets - Dec 26, 2008

Prices of jeera have been shaved off by almost 1% in today's trading. Jeera futures are currently trading at 3% discount to spot market.Amidst long liquidations in future's market has mounted the bearish sentiments in both futures and spot market. However, exporter's demand is still robust against waning stock position at physical market. As per market sources, the total stock availability of jeera were at 4-4.5 lakh bags on 26th December.

Long liquidation by arbitragers in spot market (ahead of fresh arrivals of new crop ) as futures were traded below spot has also added bearishness in future market. Selling was also on the back of strong production estimates for the next year as higher sowing acreage is likely during the current rabi season.

In today's trading , Jeera Ncdex January Benchmark Future was traded at Rs 10106 per quintal , down Rs 99 from previous close. On the other side, spot market was at Rs 10574 per quintal at Unjha Mandi.

Indonesia Hopeful Of Rice State Logistics Agency Bulog The Country - Dec 24, 2008

According to Indonesia's State Logistics Agency, Bulog, the country looks set to export rice for the first time since the Suharto era, projecting a surplus of more than five million MT because of higher-quality seeds.Based on estimates made by the Ministry of Agriculture, next year Indonesia will produce 63 million MT of dried unhusked rice.Or GKG, which will be processed into 35.3 million MT of finished rice.

The National Statistic Agency, or BPS, expects the country to produce 60.1 million MT of GKG, or 33.6 million MT of processed rice this year.With domestic rice demand projected to remain at 30 million MT next year, Indonesia may have a surplus of more than five million MT.

African Operations Slowdown As De Beers Retrenches - Dec 24, 2008

In line with De Beers' decision to scale down, the company's African operations are starting to reduce production. In South Africa, Namibia and Botswana staff levels have been reduced, most on early holiday leave some of whom are not expected to return.Botswana - the site of De Beers' most important mines - has been hit hard by the drop in rough diamond sales.

At the last DTC Botswana Sight, many sight holders chose to not take the goods, leaving the company with unwanted diamonds. Work at the Jwaneng, Orapa and Letlhakane diamond mines has also been reduced, with staff going on early holiday vacation. While lay-off plans are not clear, like its sister companies elsewhere in Africa, Debswana is considering its options. As De Beers Consolidated Mines' (DBCM) Tom Tweedy said, it all hinges on holiday sales.

"De Beers has been reviewing the prevailing level of demand for rough diamonds from the DTC clients during the past several weeks, and has been fully prepared to adapt its production plans as necessary," said De Beers Group Media Relations Manager Lynette Gould.

"High inventory levels and low liquidity have combined to impact wholesale clients' ability to purchase new rough diamond supplies, and De Beers will take immediate steps to reduce production for the remainder of 2008, and early into 2009, across its global mining operations, bringing it in line with client demand," Gould adds about the cause of the production decrease.

Inland, mining is slowing down to a single shift a day from the regular double shifts and previously announced maintenance work is taking place. If the US market decides to purchase diamond jewellery, money will run up the pipeline to wholesalers and from them to manufacturers and producers, offering financial relief as well as some peace of mind.

Iranian President Asks For Single Currency Instead Of Dollar - Dec 24, 2008

The Iranian president asked regional economic body to abandon the US dollar in order to reduce the effects of the financial crisis. In a Tuesday speech to a meeting of the Economic Cooperation Organization (ECO), President Mahmoud Ahmadinejad said the 10-member group of Asian nations could adopt a single currency instead of the US dollar to shield their financial systems from the negative impacts of the global economic crisis.

ECO was originally founded by Iran, Pakistan and Turkey, but was later joined by the Central Asian states of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, as well as Azerbaijan and Afghanistan. Member states also agreed during Tuesday's ministerial meeting to establish a body with the aim of improving the financial system of the organization and finding a breakthrough solution to their economic setbacks.

The Iranian president said the underlying principles of capitalism were to blame for the ongoing global financial meltdown. Financial cooperation, banking, fighting corruption and money laundering as well as expanding cooperation in the private sector were on the Tuesday meeting's agenda.

Gas Exporting Countries Forum Becomes Formal Organization - Dec 24, 2008

The world's biggest gas exporters have officially agreed to create a new organization with headquarters in the Qatari capital of Doha. The new charter will transfer the Gas Exporting Countries Forum (GECF) from a loose, consultative body into a formal organization with a permanent secretariat. A new organization has been born today .

The charter has been agreed. The headquarters will be in Qatar," Russian Energy Minister Sergei Shmatko said on Tuesday after a meeting of the forum's ministers in Moscow. Algeria, Bolivia, Brunei, Egypt, Equatorial Guinea, Indonesia, Iran, Malaysia, Nigeria, Qatar, Russia, Trinidad and Tobago, the UAE and Venezuela have regularly attended the forum's meetings while Norway and Kazakhstan have observer status.

Iranian Oil Minister Gholam Hossein Nozari said the group would 'prevent unnecessary harmful competition in the market, which could damage exports'. GECF energy ministers dismissed on Tuesday the Western concerns that they aim to create a gas-OPEC. "The goal of the meeting is to transform it into a more organized format. We expect such a decision to be taken. This is a gas 'Non-OPEC'," said the deputy chairman of Russian energy giant Gazprom, Alexander Medvedev.

Venezuelan Energy Minister Rafael Ramirez said, "It's not a cartel. We are defending the interests of our countries. That's all." He added, "We see in this forum an opportunity to build a solid organization, which has in its foundation the same principles that gave birth to OPEC (the Organization of Petroleum Exporting Countries).

Iran, Qatar and Russia the three countries with the world's largest gas reserves - have already held separate talks in Tehran to create a 'gas troika' to expand trilateral gas cooperation and implement joint projects.

In a keynote speech to the meeting, Russian President Vladimir Putin said higher costs of gas exploration, production and transport meant that 'the era of cheap energy resources, of cheap gas, is of course coming to an end.

India Rice Supply Food Grain Under The Public Distribution Raised - Dec 23, 2008

India's domestic rice availability is likely to rise by 1.6 million MT next year, which would be just sufficient to cater to the domestic demand but the government has ruled out any increase in supply of the food grain under the public distribution system (PDS).According to minister of state for food and public distribution rice supply is projected to rise to 95.5 million MT in 2009-10, compared with 93.9 million MT in 2008-09.However, supply of the food grain under the public distribution system is unlikely to be raised. “At present, there is no proposal to increase the allocation of rice under PDS,” he said.

Serbia Nis Serbian Deputy Energy Minister Dusan Market - Dec 23, 2008

Russia and Serbia will sign an oil and gas deal this week allowing Russia's Gazprom Neft to buy a controlling stake in Serbia's NIS, Serbian Deputy Energy Minister Dusan Mrakic said on Monday. Mrakic said the deal would most likely be signed on Wednesday.

A preliminary agreement signed in Moscow on January 25 includes the acquisition by Gazprom's oil arm Gazprom Neft of a 51% stake in state-owned Naftna Industrija Srbije (NIS) for $400 million, Gazprom's $500 million investment in a gas storage facility in Serbia, and the construction of the Serbian segment of the South Stream pipeline.

Under the South Stream project, a 400-km (248-mile) leg will be built in Serbia for Russian natural gas supplies to and via the Balkans. NIS produces around 1 million metric tons (7.3 million barrels) of crude annually, refines 7 million metric tons (51 million barrels) and has Serbia's largest network of filling stations.

Gazprom Neft, known as Sibneft before it was taken over by Gazprom in September 2005, produced 32.7 million metric tons (240 million barrels) of crude and posted a U.S. GAAP net income of $4.14 billion in 2007

Market Sources The Prices Of Maize Plummets On Bird Flu Fears - Dec 23, 2008

Maize prices have witnessed southwards journey on the account of sluggish demand of poultry industries due to outbreak of bird flu in Nort-east India.As per market sources, the prices of maize at Nizamabad mandi have been shaved off by almost 2% in last three days after the confirmation of bird flu disease in North east region such as West Bengal and Assam. At Nizamabad mandi, prices of maize were quoted at Rs 840 per quintal, down Rs 15 per quintal in last three days.Similar trading was also seen in futures market as well. The January Benchmark contract was quoted at Rs 765 , down Rs 5 per quintal from previous close

Mentha Oil Plunges On Sluggish Demand In Physical Market - Dec 23, 2008

Sturdy fall in mentha oil prices in both spot and futures market have provoked the farmers and stockiest to liquidate their stocks at physical market. As per market sources, the total arrivals of mentha oil have been increased to 340-350 drums against 300 drums reported last month.

This coupled with absence of exporters in domestic markets have plunged the prices of mentha oil have been plunged by more than Rs 15 per kg , trading at Rs 561 per kg in today's trading in Chandausi mandi.

Higher storage cost and steady down trend in mentha oil prices have prompted the stockiest and farmers to sell their stocks at physical market. While strengthening of dollar against rupee has incited the possibility of cheap imports of value added mentha products from China.In today's trading, Mentha Mcx Benchmark December future trading at Rs 558 per kg , down Rs 21 per kg from the previous close.

Russia Harvested 7.3 Mln Tonnes Of Sunflower As The Previous - Dec 22, 2008

As of December 1, Russia harvested grains throughout 96% of planned areas, including maize throughout 89%. Russian agrarians harvested sugar-beet throughout 97% of planned territory as opposed to 93% in the previous year, sunflower – 96% (at the level of the previous year), declared the Federal Service of State Statistics.

All agricultural enterprises harvested 114.4 mln tonnes of grains in bunker weight, an increase of 31.3% compared to the previous year, 7.3 mln tonnes of sunflower, up 28.3%, and 28.6 mln tonnes of sugar-beet (industrial), down 0.7%.As of December 1, agrarians sowed winter grains throughout 12.8 mln ha, up 4.6% compared to 2007.

Zambian Copper Production For The First Nine Months Of The Year - Dec 22, 2008

Global Copper market was in surplus of 30600 tonnes in the period of January to October as per the latest report by the World Bureau of Metal Statistics (WBMS). That figure is compared with a 138,000-tonne deficit in the same period in 2007, the British-based consultancy said in its monthly report. Mine production of copper for the first 10 months of the year was 12.67 million tonnes, down 1.3% from the corresponding period in 2007. Refined production was 15.28 million tonnes, up 2.1%, and output from China rose 294000 tonnes.

In a major news, Zambian copper production for the first nine months of the year rose 9.3 percent from the same period in 2007, but will not hit a full-year target (600000 tonnes) due to problems in the sector, the Reserve Bank said on Friday. Zambia produced 419,905 tonnes of copper in the nine months to September, the central bank said. Cobalt production was 3,353 tonnes for the nine months to September, down from 3,632 tonnes in the same period last year, and cobalt exports fell to 3,423 tonnes from 3,561 tonnes.

MCX Copper which closed the last session (20th Dec 2008) at Rs 144.75 per kg is now trading at Rs 149.50 per kg. Supports are at 141 levels while Resistances for the contract are at 150 levels breaking which the prices can reach 155 levels. Inventory pile up has continued in LME warehouses where stocks have so far reached 324175 tonnes as against 291200 tonnes on 1st Dec 2008, an increase of 11%.

Iraq Buys 110,000 MT Of Rice Has Bought Mostly Vietnamese Origin - Dec 22, 2008

The Iraq's Grain Board has bought a total of 110,000 MT of Vietnamese and Thai long grain rice for March shipment and will speed up purchasing by the end of this month to prevent shortages early next year.Iraq has bought mostly Vietnamese origin rice since mid November when it resumed rice purchases after nearly five months. It bought 60,000 MT of Vietnamese rice at $420 PMT, FOB.

Iraq's last major purchase in early December was 30,000 MT of the long grain 5 percent broken Vietnamese rice for shipment in January and February, bought at $411 PMT, FOB.

Japanese Rubber Futures Certain Major Manufacturers - Dec 20, 2008

Kottyam: On Dec 19, physical rubber prices went up further. Domestic buyers remained under pressure on late trades due to the sharp gains in Japanese rubber futures. Certain major manufacturers were buyers on sheet rubber up to Rs 65 a kg. The grade went up to Rs 66 from Rs 64 a kg, mainly on covering purchases amid low supplies. Rubber futures on the Tokyo Commodity Exchange were mixed on early trades while the most distant contracts were hit by renewed selling after a firm start.

Sentiments turned enormously bullish later as the December contract bounced back towards its expiration. The market maintained the strength during the afternoon session. The December 2008 contract expired at ¥120.4 (Rs 63.92) a kg, up by ¥10.5 from the previous day's close.

The January 2009 futures for RSS 3 improved to ¥118.0 (¥110.3), February to ¥119.9 (¥113.3), March to ¥120.8 (¥115.4), April to ¥121.6 (¥118.0) and May to ¥124.0 (¥120.3) a kg at TOCOM. RSS 3 (spot) flared up to Rs 61.15 from Rs 58.60 a kg at Bangkok.

Spot rubber rates per kg were: RSS-4: 66.00 (64.00); RSS-5: 64.00 (62.00); Ungraded: 62.00 (61.00); ISNR 20: 61.00 (59.00); and Latex 60 per cent: 43.50 (42.50).

Boost Stocks Despite Big Harvest Sri Lanka To Import Rice - Dec 20, 2008

The Sri Lankan government says it wants a large stock of imported rice to boost stocks, days after the country's statistics office announced a bumper harvest for the most recent growing season. Suranjana Vidyaratne, Director General of the Department of Statistics said the bumper harvest came from a 100 per cent increase in output in key rice growing areas compared with the year before, during the Yala cultivation season.

These areas were the north-central Anuradhapura and Kurunegala districts, as well as the eastern Batticaloa district.Government forces freed the eastern region of Tamil Tiger rebel activity last year, allowing normal cultivation to resume in some of the most fertile paddy tracts after years of neglect.

Demand For Gold Coins Exceeds Supply By Huge Margin - Dec 20, 2008

Gold sales from central banks, a major source of supply in recent years, have dried up, Alan Demby, executive chairperson of the SA Gold Coin Exchange said earlier this week. Demby also pointed out that demand for gold coins and bullion now exceeded supply by a huge margin as investors were seeking a safe haven from the prospective fallout in the wake of mammoth money supply creation by the United States government.

Also, demand by exchange traded funds and physical coin investors had surged, he said. The central banks position, however, was particularly interesting, he noted. Demby said the Central Bank Gold Agreement (or the Washington Agreement), which set limits on gold sales in 1999 to stabilise the market after the foundation of the euro, was set to run its course in 2009. However the 2008 limits on CBGA sales (500 tons a year) were not even close to being reached.

The reality was that European central banks might simply be done offloading their excess gold reserves, Demby said. The conclusion therefore arose that if investor demand continued, it would have to rely on other traditional sources of gold – the mines. The only other possible source of gold sales would be the International Monetary Fund – and it could only sell gold if the US Congress agreed to the sale.

Commodities Outshine Equities In 2008 - Dec 19, 2008

New Delhi: During the whole year of 2008, where equity market lost more than 50%, Commodity market substantially outperformed equities in 2008. According to ETF Securities, the equity market fell drastically in the wake of the credit crisis. The DJ All commodities Index remains high at 14% and 107% over 5 and 10 year horizons, the firm told in its Commodities Review 2008 report. On the equity front, the S&P 500 is decline at 7% and 11% over the last 5 and 10 years respectively. The bullion, Gold has capitalized strongly on increasing risk aversion over 2008, up by nearly 37% and 18% in the terms of GBP and Euro respectively over the 12 months to November 2008. Gold is flat in USD over the same period, despite nearly 13% appreciation in the USD value.

Overall, the year 2008 is worst hit by the financial crises across the globe. During the first six month of the year strong emerging market demand, supply bottleneck and significantly rising investor demand pushed the prices of many commodities to historically high levels.

Nearly 31.000 Tonnes Of Cereal Products In November - Dec 19, 2008

In November, Ukrainian enterprises continued to increase cereal production rates. According to live data, in November the country produced nearly 31.000 tonnes of cereal products, an increase of 3% compared to October production level and up 11% compared to November, 2007.

Ukraine Produced Over 215.000 Tonnes Of Vegetable Oils In November - Dec 19, 2008

According to the official data, in November Ukrainian enterprises produced 215.700 tonnes of crude vegetable oil, an increase of 3% compared to October, declared the State Statistics Committee of Ukraine.

Russia Produced 105.5 Mln Tonnes Of Grains In Clean Weight In 2008 - Dec 19, 2008

Russian government plans to purchase nearly 5 mln tonnes of grains to intervention funds till the end of 2008, declared Aleksey Gordeyev, the Minister of Agriculture, on December 17. In 2008, Russia harvested 114.4 mln tonnes of grains in bunker weight, or 105.5 mln tonnes in clean weight, stated the Minister, referring to the official statistics data.

Vietnam Rice Export Prices Likely To Fall In Current Year - Dec 18, 2008

According to a recently released government trade report, Vietnam is likely to export as much as 4.8 million MT of rice next year, similar to this year's shipments but the average export price could fall to almost 30 % from the current year.The average price in 2009 could fall to $420 PMT, FOB, cutting annual rice export revenue to $2 billion from an expected $2.9 billion this year,

The Industry and Trade Ministry said in a report. The value of Vietnam's exports of all agricultural products next year would fall 7.4 percent from 2008 to $12.2 billion, the report released via the Industrial and Trade Information Center said.

Turmeric Augments On Strong Demand In Physical Market - Dec 18, 2008

Turmeric prices have witnessed northwards move in last trading session of the day on the account of bargain buying by traders and stockiest against restricted supply in spot market. Strong demand in spot market has maintained bearish sentiments in turmeric market as trader and stockiest have witnessed active participation at lower levels.

On the other side, current situation is more tilted towards bulls as waning stocks position in the country against upcoming strong demand in domestic market might keep the turmeric prices supportive at lower levels.The total stock position of turmeric was at around 10 lakh bags, where Andhra Pradesh reported 4.25 lakh bags ,Karnataka 5 lakh bags , Maharashtra 1.55 lakh bags and others 0.45 lakh bags.

On the other side , strong demand during the month of December to March might leave the carry over stocks of the country with only 3-4 lakh bags. In today's trading, the Benchmark April Turmeric futures were quoting at Rs 3315 per quintal, up Rs 12 in today's trading after hitting the intraday high of Rs 3355 per quintal.

Rosneft And Lukoil Can Be Fined $ 65.3 Million - Dec 18, 2008

Russian oil companies Rosneft and Lukoil could be fined 1.8 billion rubles ($65.3 million) and 1.5 billion rubles ($54.4 million), respectively, for abusing their dominant market positions in summer 2008, the Russian antitrust service said in a statement Wednesday. The Federal Antimonopoly Service added that the exact amount of fine would be announced on December 24.

The service earlier said Rosneft had "fixed and maintained high monopoly-like prices for gasoline, diesel fuel, jet fuel and fuel oil in the summer of 2008, and also created discriminatory conditions and set different prices for one and the same commodity, which were neither economically nor technologically justified.

According to the service, "LUKoil abused its dominant position on the wholesale market for oil products in the summer of 2008 by fixing monopoly-like high prices for gasoline, diesel fuel, jet fuel and fuel oil." It concluded that the actions by the oil companies "have given rise to social tension and economic problems in the country." The Federal Antimonopoly Service fined Gazprom Neft and TNK-BP tens of millions of dollars each in November for abusing their dominant market positions.

Moecom Indicates Rise In Agricultural Prices Of Industry - Dec 18, 2008

As the monitoring of Ministry of Commerce of China (MOFCOM) indicated, last week (December 8-December 14) the prices of food agricultural products mainly monitored in 36 major and medium-sized cities nationwide increased 0.5% from the same time last week. The breakdown of specific changes is as follows: meat prices fluctuated mildly.

Wholesale pork prices rose by 2.4%, beef prices fell by 0.2% and mutton prices remained unchanged. Cooking oil prices continued to decrease. The retail price of peanut oil, bean oil and rape seed oil went down 1.0%, 0.5% and 0.4% respectively. Last week, the market price of production materials under key monitoring fell by 0.2% from the previous week.

Sorted by category, the prices of nonferrous metals, chemical products, rubber, energy, construction materials and agricultural materials saw decreases. The prices of light industry raw materials remained unchanged. The prices of steel and mineral ores increased. Sorted by product, A00 Aluminum, crude oil and no. 1 steel prices declined 10.0%, 7.4% and 6.6% respectively. Number 1 lead, benzene anhydride and no. 1 tin increased by 14.7%, 4.4% and 2.6% respectively.

Philippines Removes Hybrid Rice Subsidies Says Ngo - Dec 17, 2008

Philippines based Southeast Asia Regional Initiative on Community Empowerment (SEARICE) has asked the government to remove the current subsidy for hybrid rice from the national budget for next year.Eliminating the subsidy should “decisively stop the source of continuous corruption as reported by the Commission on Audit from 2004 to 2007," the Southeast Asia Regional Initiative on Community Empowerment (SEARICE) said in a statement.

Citing its research released recently, SEARICE criticized the government's FIELDS program, as not worth the expense because it continues to subsidize technology, like the use of fertilizers and hybrid rice seeds that has been tried for many years, and with little success to show for it.

Soybeans Planting Moves To 78% In Rio Grande Do In Soil - Dec 17, 2008

Recent scattered thin rains served to soften the lack of soil moisture and allowed the advance of the planting in soybean-growing regions of Rio Grande do Sul. Even with this advance, the percentage reached till December 12 (78%) is still below the historic average. The evaluation was made by the weekly newsletter by Emater/RS.

In the regions most affected by the lack of moisture, such as Noroeste Colonial and Missões, some growers fear they will not be able to finish the seeding in time. That is, maybe they go beyond the most suitable period, that, for some regions, ends by December 20. The development of the already seeded croplands is very irregular, varying in accordance with the moisture available in soil. At the moment, problems with plague outbreak, very common in situations like this, have not been reported yet.

Domestic Market Of Seeds Ukraine Imposed The Rgulation - Dec 17, 2008

The government of Ukraine put sunflower to the list of the governmental price regulated objects for the term from August 1, 2008, till July 31, 2009. The corresponding decree of the Ministry Cabinet was promulgated on the official site of the Verkhovna Rada.According to the announcement, the Ministry of Agrarian Policy imposed of the governmental price control for sunflower due to the unfavorable price situation on the domestic market of seeds.

Especially the sudden decrease of purchasing prices for the product below the level of prime cost.The Ministry expects that inclusion of the product in the list will allow the Agrarian fund to purchase nearly 160.000 tonnes of the product and support agrarians in that way.The government determined wheat, barley, maize, rye and sugar as the objects of the state price control in 2008/09 MY.

According to the legislation, the government provides the regulation through purchase or sales of the products to the Agrarian Fund that is why the ministry of Agrarian Policy fixes the minimum and maximum purchasing prices.In the current year, sunflower harvest totals 6.2-6.3 mln tonnes in clean weight, according to the Ministry.

Market May Drift Lower Merrill Lynch JP Morgan - Dec 16, 2008

Reports that top companies and leading private sector lenders have reported a dip in advance tax payments in Q3 December 2008 may trigger profit taking after a recent solid surge in share prices. A subdued trend in Asian stocks may be another trigger for profit taking. A fiscal stimulus package by the government, rate cuts by the central bank and buying by foreign funds have boosted the bourses in the past few days.

A recent low of 8,739.24 on 2 December 2008, the BSE Sensex jumped 1,093.15 points or 12.5% in the eight trading sessions to 9,832.39 on Monday, 15 December 2008.Barring mainly government-owned banks, private sector lenders and some of India’s largest companies have reported dips in advance tax payments for the October to December 2008 quarter. India's biggest private sector bank by net profit ICICI Bank's advance tax payment declined 0.6% to Rs 470 crore in Q3 December 2008 over Q3 December 2007. India's second biggest private sector bank HDFC Bank's advance tax payment declined 10.7% to Rs 250 crore in Q3 December 2008 over Q3 December 2007.

India's biggest private sector firm and oil refiner, Reliance Industries (RIL) advance tax outgo declined 15.2% in Q3 December 2008 over Q3 December 2007. However, the figures are not comparable because of a huge minimum alternate tax payment of over Rs 400 crore that had boosted the Q3 December 2007 advance tax figure.Asian stocks fell on Tuesday, 16 December 2008, led by raw- materials companies and consumer-electronics makers, as the deepening global recession stifles the outlook for earnings.

US stocks fell on Monday, 15 December 2008, as New York state manufacturing data pointed to tumbling demand and more signs of economic weakness. The Dow Jones industrial average shed 65.15 points, or 0.75%, to end at 8,564.53. The Standard & Poor's 500 Index fell 11.16 points, or 1.27%, to 868.57. The Nasdaq Composite Index dropped 32.38 points, or 2% to 1,508.34.Investors worried about potential heavy losses ahead of results from Goldman Sachs and Morgan Stanley after Merrill Lynch downgraded JPMorgan and forecast a fourth-quarter loss for the bank.

Global Cotton Million Tonnes It Said Adding That There Would - Dec 16, 2008

The global cotton trade is likely to fall by 12 per cent to 7.3 million tonnes in 2008-09, following uncertainty about the global financial crisis and tightening credit availability for spinning mills, the International Cotton Advisory Committee (ICAC) said.A decline in world cotton imports is mainly driven by an expected 24 per cent drop in imports by China (Mainland) to 1.9 million tonnes, ICAC said in a statement.

Imports by the rest of the world are also expected to decline by seven per cent to 5.4 million tonnes, it said, adding that there would be a six per cent fall in global cotton mill use to 24.9 million tonnes in the next year.

ICAC said lowered global economic growth for 2009, projected decline in developed economies' income, tightening credit availability for spinning mills and uncertainty regarding the consequences of the global financial crisis, are severely affecting cotton consumption worldwide. Meanwhile, global cotton production is also expected to decrease by six per cent to 24.6 million tonnes, driven by a decline in cotton area cause by increased competition from grains and oilseeds and unfavourable fluctuations in the exchange rates of many producing countries during 2007-08, it said.

In particular, production is expected to fall in the US by 30 per cent to 2.9 million tonnes, while it could increase in India, Pakistan and Australia, it added. ICAC is an association of governments of cotton producing and consuming countries

Bosch Has Auto Parts Plants In A Host - Dec 15, 2008

Bosch, the largest auto parts maker in the world, will have to slash jobs in Germany and abroad in the face of the global financial crisis. Management board member Bernd Bohr told Auto Motor and Sport magazine in an interview that several hundred jobs would be affected in Bosch's foreign plants and "structural adjustment" would be carried out in Germany.

"It could be more depending on how deep the economic falloff will be," Bohr added. He also said that temporary contracts would not be renewed.

Bosch has auto parts plants in a host of countries in Asia and the Americas, including major installations in the United States, China and India. In October the group predicted a 'really tough year' in 2009 after results in 2008 fell below expectations, with rising costs and weaker sales growth. Bosch spokeswoman Uta Michaela Duerig confirmed the report, adding that the company would first try to cut costs by reducing work hours.

Last month, Bosch announced it would reduce working hours for some of its 66,000 workers at German plants as the car industry cuts costs and braces for economic recession. The company, which also manufactures power tools and household appliances, has already shut down some production lines, eliminated hundreds of temporary jobs and cut working hours. Bosch has a 272,000-strong workforce. In recent weeks, German automakers including BMW, Daimler and Opel, among others carmakers in Europe, have announced production cuts.

India Oil Imports Up Nearly 50% In November - Dec 15, 2008

India's vegetable oils (edible and non-edible) in the first month of the new oil year 2008-09 stood at 555,342 tons compared to 427,912 tons in November 2007, consisting of 519,032 tons of edible oil and 36,310 tons of non-edible oil according to the Solvent Extractors' Association of India. India didn't import soybean oil last month as the government imposed a 20 percent tax to shield domestic oilseed growers from duty-free purchases.

The edible oil imports are up nearly 50% in November 2008 compared with 347320 in November 2007. During November 2008, Import of RBD Palmolein is stood at 137, 959 tons compared to 30,014 tons in November 2007 which is up almost 360%. Share of Refined Oil has increased to 27% from 25% in October 2008 and Crude Oil is reported at 381,073 tons compared to 317,306 tons.

Whereas imports of Non-edible oils during November stood at 36,310 tons compared to 80,592 tons in November 2007 i.e. down by 55%. P.F.A.D., C.P.S. and C.P.K.O. are the major import of Non-edible oils.

India relies on overseas purchases to meet almost half its edible-oil demand. It buys palm oil from Indonesia and Malaysia, and soybean oil from Argentina and Brazil.

India 2009 Edible Oil Demand Likely To Rise 4% - Min - Dec 15, 2008

India's edible oil demand could rise by 4% to 13.3 million metric tons in the marketing year to September 2009, Akhilesh Prasad Singh, the junior food minister, said Monday.India's edible oil production was 8.5 million tons in 2007-08, and it imported 4.9 million tons during the same period.

Oilseeds production in 2007-08 rose 19% on year to 28.8 million tons.India, the world's second-largest edible oil importer after China, imports palm oil from Indonesia and Malaysia and buys soybean oil from Argentina and Brazil.

The federal government plans to spend INR3.2 billion for boosting domestic oilseeds production in 2008-09.India is a net importer and sells edible oil in the local market through its public distribution network at a subsidized rate to the poor.

Brazil Soyabeans Planting Hits 93% From Area Safras - Dec 13, 2008

The soybean planting of the 2008/09 season is 93% complete. The work pace is delayed in comparison with the same period last year, when 96% from the area were seeded, and also below the average of the period, of 96%. The data are part of SAFRAS & Mercado report through December 12. Last week, the planting lay at 86%.

In Mato Grosso, the planting is over. In Mato Grosso do Sul and Paraná, the already planted area hits 96%. In Rio Grande do Sul, the planting occupies 81%, while in Goiás it does 88%.

Commodity Jeera Futures Gains Plunged In The Market - Dec 13, 2008

The Jeera futures pared the last session gains today on profit taking tracking the weak physical market cues. The NCDEX Jeera futures benchmark January contract ended the session higher Rs 66 at Rs 10,560 per 100 kg. The January Jeera futures traded as low as Rs 10,430 on Friday morning trading session and the open interest dropped 0.12%, indicating profit taking. Technically the next resistance would be at Rs 10,580 and Rs 10,650 and support at Rs 10,350 per 100 kg.The jeera price plunged in the local cash market on yetserday. The commodity ended the session lower nearly Rs 83.95 to Rs 10,578.85 per 100 kg.

Delhi Chana Extends Drop From Two Month Lows - Dec 13, 2008

Chana prices slipped further in the early trading in Delhi market today, extending a drop from the two month highs earlier this week as thin demand curbed the price frenzy that ruled the market place for much of the week. The commodity currently trades at Rs 2258, down Rs 10 per quintal from the previous close. The prices rallied to a high of Rs 2293 on Thursday – the highest level for the commodity since the middle of October.

World Bank To Lend India Infrastructure Aid Funds - Dec 12, 2008

The World Bank said on Friday it will lend India $14 billion by 2012 to help the country overhaul its creaking infrastructure and increase living standards in its poor states. The government has estimated it needs $500 billion over the five years to 2012 to upgrade infrastructure such as roads, ports, power and railways.

Under the strategy, the bank will use lending, dialogue, analytical work, engagement with the private sector, and capacity building to help India achieve its goals," the World Bank said on its website. The International Bank for Reconstruction and Development would lend $9.6 billion and the International Development Association would make available $4.4 billion of funding.

Only 30 percent of India's state highways have two lanes or more, and the majority are in poor condition, the bank said. Electricity generation capacity has grown at less than 5 percent in the past five years, much slower than overall economic growth of about 8 percent over the same period.

The funds would also be used to help reduce poverty in seven low-income states; Bihar, Chhatisgarh, Jharkand, Madhya Pradesh, Orissa, Rajasthan and Uttar Pradesh, the World Bank said.

Sakhalin Energy Launches Oil Export By New Terminal - Dec 12, 2008

Sakhalin Energy launched year-round oil export deliveries on Friday via a new oil terminal as part of the Sakhalin II oil and gas project off Russia's Pacific Coast, the company said in a statement. "This first cargo is a key milestone in the commissioning of the facilities," the statement quoted Sakhalin Energy CEO Ian Craig as saying.

The construction phase is nearing completion. We are now focused on commissioning the full production system, with LNG processing starting in the next few weeks," he said. Located on Aniva Bay in the southern part of Sakhalin Island, the new oil export terminal has a total storage capacity of 1.2 million barrels of oil. An underwater pipeline to a tanker-loading unit (TLU), which is located about 4.5 kilometers (3.1 miles) offshore, is able to pump oil at a rate of 50,000 barrels per hour.

The $20 billion Sakhalin II project includes the Piltun-Astokhskoye and Lunskoye oil and gas fields on Sakhalin Island's northeastern shelf, with recoverable reserves estimated at 150 million tons (1.1 billion bbl) of oil and 500 billion cubic meters of natural gas. The minority partners in the project, Royal Dutch Shell, Mitsui and Mitsubishi, currently hold 27.5%, 12.5% and 10% stakes in the project respectively. Gazprom acquired a controlling stake (50% plus one share) in the project in December 2006.

Sakhalin Energy has produced over 100 million barrels of crude since 1999. "Year-round production and export of Sakhalin II oil will significantly enhance energy security in the Asia Pacific region and strengthen Russia's position in the world markets," the company said.

Spot Gold Eases A Bit In Asia Firm Ahead Of Fed Next Week - Dec 12, 2008

Spot Gold drifted slightly lower in Asia, easing from day's highs as the commodity market participants booked some profits ahead of the weekends. The commodity raced away to a two month high of 835 per ounce in the last session as continued stress on the global economic front and a recovery in the Euro pushed the yellow metal up.

Yesterday, the South African Gold Coin Exchange said that demand for gold coins has been so strong during the financial crisis that coin dealers around the world are starting to run out of coins.

This is likely to keep the yellow metal well supported in the near term as some strong technical levels have breached for spot gold in the sweeping run this week. The commodity broke above the 100 day EMA on Tuesday and though some profit sales have emerged after the buoyancy in the early Asian trades, the $800 levels, being hold on a closing basis would spur a lot of positive sentiment in the commodity next week as the US Fed gets ready to deliver yet another of its interest rate cuts.

The Fed has already slashed the benchmark rates by 375 basis points in the current year, pushing the borrowing cost at a four year low of 1%.

Discovery Metals Boseto Copper Project Likely To Be Delayed - Dec 11, 2008

Discovery Metals' Boseto Copper Project, which was to be commissioned in 2010, is likely to be delayed as the effects of the global financial crisis begin to trickle down to Botswana. Speaking at the Australia Day mining conference in London on Monday, Managing Director Brad Sampson said the timeline for the approximately $200 million project is to be extended because of the economic downturn.

"The firm is revising a feasibility study after metals markets and share markets tumbled," Sampson said. "We think there may be some value in slowing down a little bit. "The Botswana, Australia and London-listed firm had been hoping to commission its Maun-based Boseto project, which has a resource of 50 million tonnes of ore at 1.3 percent copper, in late 2010 Sampson said a slowing down of the project would also allow the firm to expand its resource base.

The firm has 10,100 square kilometres of prospecting licenses in an area that is a little-explored extension of the central African copper belt in Zambia and the Democratic Republic of the Congo. Discovery has A$8.6 million ($5.5 million) of cash, which is enough to last through the middle of next year when a final feasibility study is due to be completed, Sampson said.

News of Discovery's timeline extension comes at a time when the company has just announced the results of a recent soil geochemistry programme conducted along the south west strike extension of the Petra prospect at the Boseto Copper Project in it identified a new 3.6-kilometre long surface copper anomaly immediately south west of the current Petra prospect.

Tajikistan Prepared 45.000 Tonnes Of Wheat Winter Crops - Dec 11, 2008

In the current year, Tajikistan plans to increase own sowing areas by 50% compared to the previous year and use 170.000 ha of irrigated area for winter crops, informed IA "Asia-plus.According to Saidmurod Bahriddinov, the head of plant growing department of the Ministry of Agriculture of Tajikistan, the country has already sowed winter crops throughout 87.000 ha, including 80.000 ha of irrigated lands.

According to him, the country increased sowing areas of winter crops due to high yield of winter wheat compared to spring crops. Tajikistan prepared 45.000 tonnes of wheat seed for sowing of winter crops.Last year, Tajikistan sowed winter and spring grains throughout 295.000 ha, including 135.000 ha of winter crops, but harvesting areas totaled 240.000 ha only due to droughts.

According to calculations, the sowing areas of 170.000 ha of irrigated lands with average yield of 30 c/ha will produce nearly 510.000 tonnes of grains. The country also has 200.000 ha of dry lands.The country plans to produce nearly 1 mln tonnes of wheat and cover 70-80% of the domestic consumption of the product.If the country completes sowing operations on dry lands, the average yield in the territory will total 10-15 c/ha.

Ukraine Grain Exports To Decrease By 17% In Association - Dec 11, 2008

The Ukrainian Grain Association forecasts the decrease of grain exports from Ukraine in December by 17% compared to the previous month – to the level of 1.5 mln tonnes, declared Vladimir Klimenko, the president of the Association. According to him, in November, 2008, Ukraine exported 1.8 mln tonnes of grains, in October – 2 mln tonnes.

The decrease of export volumes was caused by fall of grain prices on the world market. Thus, at the end of 2008, beginning from July 1, 2008, Ukrainian grain exports will total nearly 12 mln tonnes, stated V.Klimenko.

China Soybean Imports 3.32 Mln Tons Down 0.6% On Year - Dec 10, 2008

China imported 3.32 million metric tons of soybeans in November, according to preliminary data issued by the General Administration of Customs Wednesday, down 0.6% from a year earlier. The on-year fall was much more moderate than October's 25% decline, probably because of global soybean prices were lower than domestic ones. Soybean imports in the first eleven months totaled 34.14 million tons, up 22% on year, said the customs.

Hot Commodities Near Month Futures In Short Covering - Dec 10, 2008

The MCX Cardamom futures near month contract is trading with hefty gains today on short covering ahead of the expiry. The near month December futures contract on MCX is expiring on 15th December, the tender period for the delivery started today. The market participants are covering their earlier short positions ahead of the expiry, it helped the future to trade with hefty gains today.

The December contract spurted more than 3% in today's trading session to the session high of Rs 626.25 a kg. The counter currently trades at Rs 619, up 2.15% and the open interest dropped 15.28% to 122 lots from 144 lots as on last day, indicating short covering ahead of expiry.The January contract currently trades with loss of Rs 3 at Rs 565 and the far month February futures contract currently trades with gain of Rs 9.25 at Rs 576.50 a kg.

Novolipetsk Steel Agreed To Sell Its Cargo Logistics - Dec 10, 2008

Russia's Novolipetsk Steel said on Tuesday it had agreed to sell its 69.4% stake in the Black Sea port of Tuapse to Netherlands-based Universal Cargo Logistics Holding B.V. for around $254 million. Novolipetsk Steel, one of Russia's top steel producers, said the divestiture was in line with the company's previously announced internal restructuring program aimed at streamlining its asset structure.

The Tuapse seaport in southern Russia was classified as a non-core asset by the Novolipetsk board of directors in February 2006. Cash generated from the disposal of the Tuapse port will go to repay the company's short-term liabilities and help fund the steel giant's current investment projects, Novolipetsk Steel said in a statement. The transaction is subject to antitrust regulatory approval and is expected to be closed within two months, the statement said.

Commodities Russia Decreased Wheat Exports By 20% - Dec 10, 2008

During January-October of 2008, the export share of food goods from Russia totaled 1.1% as opposed to 1.7% in January-October, 2007. The supply volumes of wheat decreased by 20.2%, barley - by 40.3%, sun oil - by 55%., according to the announcement of the Federal Customs Service of Russia, published on December 8.

During 10 months of 2008, Russia exported 8.8 mln tonnes of wheat to the sum of 2.3 bln USD, including 898.400 tonnes tot he CIS countries and 7.9 mln tonnes to other foreign countries.

Rubber Prices Steady In Low-Key Market - Dec 09, 2008

Kottayam: The physical rubber prices were stable on Dec 8. The market activities were in an extremely low key as most of the traders were in a holiday mood because of Bakrid. Sheet rubber closed steady at Rs 59 a kg as on Saturday last. Meanwhile RSS 4 improved at its January futures to Rs 60.06 from Rs 58.45 a kg on NMCE. The current fall in rubber prices has shattered the farming sector as a whole creating much hardship to the rubber growing community.

Both the Centre and the State Governments are bound to rescue them from this difficult situation, Mr Joy Nadukkara, Ex MP and President, Meenachil Rubber Marketing and Processing Cooperative Society Ltd have informed media.In the global scene, the December futures for RSS 3 improved to Yen 104.8 (Rs 55.67) from Yen 95, January to Yen 106.5 (97), February to Yen 109.9 (100.7), March to Yen113.3 (103), April to Yen 115.1 (105.2) and May to Yen 117.7 (108.6) a kg at TOCOM. Spot rates (Rs/kg) were: RSS-4: 59 (59); RSS-5: 57 (57); Ungraded: 54 (54); ISNR 20: 56.50 (56.50) and Latex 60%: 44 (44).

Crude Producer Russneft Loses Three Oil Licenses - Dec 09, 2008

Russian crude producer RussNeft will have its licenses for three West Siberian oil fields revoked from December 10, a business daily said on Tuesday citing a Rosnedra spokesman. Vedomosti said the mineral resources regulator had revoked the licenses after the company failed to comply with the terms of its license. RussNeft had also failed to meet deadlines on oil volumes; Rosnedra has declined to provide further details.

The three licenses were held by a RussNeft subsidiary, Benodet Investments Ltd. Recoverable oil and gas condensate reserves at the fields amounted to 6.1 million metric tons, or 4.1% of the company's reserves. The company produced 227,485 metric tons of liquid hydrocarbons (1.6% of its output) at the fields in 2007.

Neither the RussNeft vice-president, Eduard Sarkisov, nor a spokesman for En+, which is seeking to acquire RussNeft, has made any comment on the withdrawal of the licenses, the paper said. RussNeft Holding produced 14.2 million metric tons (104.37 million bbl) of oil in 2007. Its income calculated to Russian Accounting Standards totaled 119.5 billion rubles ($4.3 billion) in the first nine months of 2008, with net profits of 8.8 billion rubles ($314.3 million).

Cbot Corn Review Corn Futures Plunge Further - Dec 08, 2008

The bearish outlook for the U.S. economy on Friday continued to batter corn futures, with the December contract closing below $3 for the first time since October 2006. Weak demand, and little hope that it will rebound soon, is driving corn lower. Corn was pressured by a higher dollar, lower crude oil and U.S. stocks that were sharply lower for most of the day following the morning's November jobs report. After dropping almost by the 30-cent daily trading limit, corn rebounded slightly late in the day, when equities turned higher. December corn ended down 24 3/4 cents to $2.93 1/2 per bushel, March corn ended down 24 ¾ cents to $3.09 1/4, and May corn ended down 25 3/4 cents to $3.19 1/4.

Jeera Will Be Supportive At Lower Levels - Dec 08, 2008

Spate of news related with crop damage in Gujarat coupled with resurgence of buying interest amongst exporters might keep the jeera prices supportive at lower levels.As per market sources, heavy rainfall in major jeera growing areas of Saurashtra might cause some damage to the jeera crop .However, the total sowing acreage of Guajrat has been spurted by almost 10% from the previous year and the sowing practices are already under progress in Rajasthan.

Prices were also well supported by receding stocks in domestic market as total stocks were stood at 5-6 lakh bags as on 6th December 2008 and some buying activity was also seen in export market as the prices of export quality of Jeera have been augmented by Rs 100-150 per quintal , quoted at Rs 9750 per quintal.Therefore, we expect jeera prices are likely trade in the range of Rs 10650 – 10880 per quintal in the coming days.

Doha Round Modalities May Reach Resolution This Month - Dec 08, 2008

The Doha Round of World Trade Organization talks may reach a resolution this month as the US policymakers try to break the deadlock between the developed and developing nations in the last few weeks of the Bush presidency. The WTO has released revised draft negotiating text reflecting the most recent adjustments in the negotiating positions of the key players on two key topics, that of trade-distorting agricultural tariffs and subsidies, and non-agricultural market access (NAMA).

According to the WTO, member nations now intend to move to a new phase where these areas of the Doha Round can be negotiated in comparison with each other with the hope that agreement can be reached later this month, when a representative group of ministers could meet be in Geneva.Director-General Pascal Lamy said the new drafts should move the Doha round of global trade negotiations closer to completion.

"With these revised texts we are closer to our goal of clinching modalities in agriculture and industry, a stepping stone towards the conclusion of the Doha Round," Mr Lamy said recenlty. "We still have a long way to go before the Round is concluded and all members are asked to cast their ballot on the final package."However, the modalities step would send a signal that all WTO members stand united to face the challenges of the current economic crisis", he quoted further. WTO members are expected to show negotiating flexibility necessary to translate the strong political commitment, into real progress in these negotiations.

Black Pepper January Futures Contract Traded In The Week - Dec 06, 2008

The Black Pepper futures extended the last session loss on weak demand. The NCDEX Black Pepper futures benchmark January contract ended the last session with loss of Rs 136 over the last close at Rs 10,899 per 100 kg after plunged nearly Rs 210 during the yesterday's trading session and the open interest added 0.41% to 4,916 lots from 4,896 lots as on last day, indicating short selling.

The NCDEX Black Pepper January futures contract traded in the ranges of Rs 10,883-Rs 10,750 per 100 kg on today's opening trading session. The counter currently trades at Rs 10800, down Rs 99 and the open interest added 3.72% to 5,098 lots from 4,916 lots a son last day, indicating short selling. The volume traded as of now stood at 600 lots.

The Black Pepper extended the last session loss in the local cash market on yesterday. The Black Pepper Malabar Garbled Grade-1 ended yesterday's session lower Rs 27.40 at Rs 11,278.96 per 100 kg. The commodity ended the last session with loss of Rs 15.05 at Rs 11,306.35 in the benchmark Kochi Mandi. The commodity lost nearly Rs 122.75 over the last week.

Area Under Whea Oilseeds Up Sharply As Rabi Sowing - Dec 06, 2008

The latest updates from the Ministry Of Agriculture suggest that as per the data received from States, there is significant rise in area under major foodgrain and oilseed crops this rabi as compared to last year. Wheat has been sown in over 173-lakh hectare so far, as compared to 154-lakh hectare by this time last year, up 12.33%. The area under oilseeds is also up 10% at 82.02-lakh hectare. The cropped areas this year and last year for major rabi crops are as follows.

Markets Fresh Arrivals Drags Guarseed In Red Quintal - Dec 05, 2008

Owing to fresh arrivals of guarseed in major mandies of Haryana and Punjab against waning demand of millers have plunged the guarseed in both spot and future markets.As per market sources, fresh arrivals of around 75000-85000 bags have been seen in mandies of Rajasthan and Punjab, while prices were trading at around Rs 1565 per quintal (inclusive of all taxes ). Moreover, Arrivals are likely to be increase in the coming days on the heels of fresh arrivals from eastern Rajasthan. .

This has also mounted the selling pressure in futures markets as Guarseed January Benchmark futures have been plummeted by more than Rs28 per quintal in today's trading and are currently trading at Rs 1561 per quintal.

Brazil Companhia Vale To Shut Copper Cliff South Mine - Dec 05, 2008

Brazil's Companhia Vale do Rio Doce will shut its Copper Cliff South mine, in Sudbury, Ontario, in January, because of weak nickel prices and slumping demand, the firm announced on Thursday morning. The mine, which produces 8 000 t/y of finished nickel, will be closed “for an undetermined period of time”, while a $814-million capital project, to replace the shafts in the mine and the neighbouring Copper Cliff North operation with a single shaft, has also been deferred for a year.

However, Vale Inco communications and public affairs director Cory McPhee said in a that all of the 365 people employed at Copper Cliff South will be redeployed to other Vale Inco operations in Sudbury. The company has six mines, a mill, a smelter and a refinery in the region and employs around 4 700 people.

A task team is being set up, which will include union representation, to oversee the redeployment process, McPhee said. The company will also roll out a voluntary retirement programme for eligible staff at all its nickel operations around the world.

Nickel traded above $22/lb in 2007 but has since fallen sharply, to around $4/lb, as slowing global economic activity dampens demand for the metal, which is used to make stainless steel. Vale, which acquired Canadian nickel group Inco last year, also announced plans on Thursday to shut its Voisey Bay operations, in Canada's Newfoundland and Labrador province, during the entire month of July next year.

Commodity Exchanges Remove The Ban On Four Bullish - Dec 05, 2008

New Delhi: After nearly 6 months ban of 4 items, futures trading in soya oil, chana, potato and rubber resumed on 4 Dec on the MCX, NCDEX, NMCE and NBOT platforms. Soya oil, which has been re-launched on NCDEX, MCX and NBOT, opened weak, taking cues from the international market. Soya oil for Jan 2009 delivery fell 2.71% at Rs 447.55 per 10 kg on NCDEX, while it slipped by 4% at Rs 451.20 on the MCX. Soya oil on the regional bourses also began on a modest note.

Chana on NCDEX and MCX were trading on negative territory. The most-active January contract fell 0.8% at Rs 2,231 per quintal on NCDEX and 1.54% at Rs 2,240 on MCX. Interestingly, potato futures, re-launched on the MCX, started on a bullish note. Both the Agra and Tarkeshwar (West Bengal) varieties for March 2009 delivery were up by 4% at Rs 447 per quintal and Rs 270 per quintal, respectively. Rubber both on MCX and NMCE were trading firm. The January contract rose by 3% at Rs 6,180 a tone, while there was no trading in February and March contracts.

Rubber on NMCE was trading at Rs 6,378 per tone. Market analysts said that traders' participation was seen firm in these re-launched contracts. According to Karvy Comtrade analyst Veeresh Hiremath, traders were happy trading in these commodities have resumed, but they are expected take some time for active participation. Earlier, the government had suspended futures trading in the four items for four months on 6 May under pressure from the Left, which blamed futures markets for price rise. The ban was later extended till 30 November.

Russia Mainly Products In The Oil And Gas Industry - Dec 04, 2008

Russia and India plan to increase trade to $10 billion by 2010 from this year's expected level of $7 billion, and diversify market , a Russian deputy prime minister said on Wednesday. Speaking at a session of the bilateral commission on trade, Alexander Zhukov said: "We are not only aiming to boost the figures measuring cooperation, raising trade to $10 billion by 2010, but we also want our cooperation to reach a modern level, by expanding science and research ties.

Zhukov said bilateral trade in January-September 2008 grew 54.7% year-on-year to $4.7 billion, with Russian exports growing 62.6% to $3.5 billion and Indian exports by 36.5% to $1.2 billion.Russia sells to India power plant and other equipment, fertilizers, chemical products, copper, nickel, plastic goods and wheat. India has exported machinery and pharmaceutical goods to Russia. India's investment in Russia - mainly direct investment in the oil and gas industry, banking and information technology - reached more than $820 million in the first half of this year, Zhukov said.

Gold Continued To Turn Lower In The Asian Trades - Dec 04, 2008

Gold continued to turn lower in the Asian trades as the dollar strength extended ahead of the crude Central banking decision in Europe today. COMEX Gold trades lower by $2.70 an ounce to $767.80 an ounce, lingering around its days lows. The commodity ended down $ 12.80, at $ 770.50 an ounce on Comex division yesterday, the lowest since 20th Nov 2008. It dropped to $ 764.10 earlier.

Gold inventories held by the Comex for futures delivery stood at 2,908,224 ounces as of Monday, down 7,202 ounces from a day ago, according to latest data from the exchange.
Meanwhile, Beige Book from the Federal Reserve said yesterday that economic activity weakened across all Federal Reserve Districts since the last report." The news was not a surprise, but it was sobering that the report showed no signs of improvement in any sector.

The U.S. Labor Department said that non-farm productivity was up an annual rate of 1.1% in the third quarter, down from last month's estimate of a 1.3% annual pace. Unit labor costs were up an annual rate of 2.8% in the third quarter. The Institute of Supply Managements' index of services fell from 44.4 to a new record low of 37.3 in November, much weaker than expected.
A further drop in COMEX futures would bring $761 in the frame while MCX Gold futures, lingering around Rs 12416, may touch Rs 12280 on a break below Rs 12400.

Consumption Of Primary Market In China Rise - Dec 03, 2008

Consumption of primary aluminium in China, the world's top consumer, may rise 8.5 percent this year and just 3 percent next year due to the global financial crisis, a senior analyst at Antaike, a state-owned research group, said. The expected growth rates would be the lowest in years and mark a sharp fall from a more than 30 percent rise in 2007.

Consumption is slowing due to the global financial crisis and weak performance of the local property market," Wang Feihong told an aluminium conference. "The Chinese market will have a surplus and prices will fall," he added.

Antaike sees China's aluminium consumption rising to 13 million tonnes this year and 13.4 million tonnes in 2009. The country will still have a surplus, even though aluminium smelters have cut production. Wang said about 1.5 million tonnes of aluminium smelting capacity might halt production by the end of this year, given weak domestic demand and low prices. He added start-ups of about 2.2 million tonnes of new capacity would be delayed.

Production cuts and output disruptions by the weather and electricity issues earlier in 2008 would trim the country's metal output by at least 1 million tonnes this year, he said. Antaike expects China's primary aluminium production to rise 10.6 percent this year versus a third last year, to 13.9 million tonnes, although capacity is still likely to rise nearly 20 percent to 18.2 million tonnes.

Wang said the production cuts and weak demand would extend to 2009 and that would discourage smelter production, which could keep the metal output flat in 2009, for the first time in years. With production of aluminium having slowed, the output of alumina, the main input for the metal's production, is also falling, Antaike analyst Zhu Yan told.

Antaike predicts China's alumina production would rise 21 percent on the year to 24.6 million tonnes this year, and inching up just 1.8 percent to 25 million tonnes next year. Output surged by a half in 2007. Capacity of alumina is expected to rise 24 percent on the year to 33 million tonnes this year after having surged nearly 40 percent last year. But the capacity is unlikely to rise much in 2009 as demand falls.

Price Spurt At South Indian Green Ltd Company - Dec 03, 2008

In the Cardamom auction conducted at South Indian Green Cardamom Company Ltd, Kochi, as on Tuesday. The average price spurted Rs 12 to Rs 464.50 from Rs 452.50 a kg in the last week maximum price spurted Rs 28 to Rs 605.50 from Rs 577.50 a kg in the last week. The minimum price stood at Rs 320.60 as against Rs 360.50 per 1 kg in the last week. The traded quantity plunged to 31.65 tonnes from 35.76 tonnes in the last week. The sources reported that the prices improved slightly on yesterday's auction on falling arrivals and improved demand.

Large Gold Deposits Discovered In Russia - Dec 03, 2008

Russia's National Geological Prospecting Company announced on Tuesday the discovery of a large gold deposit in the Republic of Buryatia in East Siberia.The gold field with estimated reserves of up to 100 metric tons of gold (3 million troy ounces) was discovered at the licensed Perevalny block owned by Geomin Management, the company said. Geomin Management plans to invest up to 500 million rubles ($18 million) in 2009 in additional prospecting and survey works at the field with NGPC to act as the general geological contractor, the statement said.

NGPC, which was established in 2007 and carries out prospecting using venture capital funds, is also involved in prospecting for precious metals at other fields in Siberia, the statement said.

Jeera Price Showed Some Of Yesterday - Dec 02, 2008

The NCDEX Jeera futures ended the last session lower, the January, February and March futures ended the last session with loss of Rs 101, Rs 123 and Rs 79 at Rs 10414, Rs 10045 and Rs 9937 per 100 kg respectively on Monday.The Jeera futures traded with mixed note on Tuesday morning trading session. The NCDEX Jeera futures January contract traded in the ranges of Rs 10470-Rs 10315 and the counter.Currently trades at Rs 10434, up Rs 20 from the last close.

The open interest in the contract added 0.094% to 6,387 lots from 6,381 lots as on last day, indicating short selling. The volume traded as of now stood at 1,119 lots. Technically the next resistance at Rs 10,480 and Rs 10,600 and support at Rs 10,250 per 100 kg.The Jeera price showed some recovery on yesterday in the local cash market. The Jeera price in the benchmark Unjha mandi ended the session with profit of Rs 22.55 at Rs 10602.80 per 100 kg as on Monday. The commodity ended the last session with loss of Rs 19.75 per 100 kg and the commodity gained nearly Rs 29.25 over the last week.

Spot Rubber Prices Witnessed Mixed Reaction - Dec 02, 2008

Physical rubber prices witnessed a varied reaction on Dec 1. Sheet rubber firmed up on covering purchases on extremely low arrivals. Another sharp decline in global futures failed to influence the domestic rates as it is rumoured that most of the growers have started holding their produce. However, RSS 4 rose to Rs 67 from Rs 66 a kg but latex 60 per cent slipped further against the general trend on low demand.

The futures on the Tokyo Commodity Exchange surrendered stridently on heavy long liquidation at the opening followed by declines in oil products futures. Prices fell deeper into minus territory on late trading as fresh selling and repositioning became dominant.

Sentiments remained extremely bearish from midmorning to afternoon. RSS 3 declined at its December contract to �114 (Rs 61.19) from �125.8, January to �115.6 (127), February to �117.7 (128), March to �119.7 (130.7), April to �121.7 (134.1) and May to �124.2 (137.6) a kg at TOCOM. Spot rates were (Rs/kg): RSS-4: 67 (66); RSS-5: 64 (63.50); ungraded: 63 (63); ISNR 20: 63.50 (63) and latex 60 per cent: 48 (49.50).

Maize Rules Steady At Domestic Prices - Dec 01, 2008

The domestic Maize prices are trading steady in the major cash markets today with sufficient supplies keeping the possibility of a massive upturn in the commodity very much limited. The spot quotes at Nizamabad were hovering around Rs 861 a quintal today, down Rs 1 on the day. The commodity has been hovering around Rs 860-870 since the start of last week.

Buoyancy Continued In Market On Stockiest - Dec 01, 2008

Buoyancy continued in mustard seed market in the wake of sturdy buying by traders and millers to meet upcoming festive demand against waning stock position in domestic market.As per market sources, weak arrivals in major mandies (around 4000-5000 bags) against strong demand of stockiest have maintained the steady sentiments in physical market. Sharp decline in mustard seed prices from last two weeks, resulted to strong offtake by oil millers in physical markets. The current stock position of the market was at around 5 lakh bags against 10 lakh bags reported last year in the same period.

futures market, Mustard seed November Benchmark future has been swelled by more than Rs 6per 20 kg in today's trading and were quoting at Rs 586 per 20 kg. However, some selling has been witnessed in February due to anticipation of strong arrivals of fresh crop from Rajasthan. Ncdex February contract was at Rs 479 per 20 kg, down Rs 5 from previous trade.

Japan Aluminium Demand Registers First Crisis - Dec 01, 2008

Japanese demand of aluminium ingot and rolled products increased by 0.5% to 2.207 million tonnes in the first half year to September from same period of 2007, which represents the first increase in 2 years, announced by Japan Aluminium Association on Friday. The output increased due to firm demand for transport and automobile and export. However, the full year demand could decrease from fiscal 2007 due to slower worldwide economy after US financial crisis.

Kochi Tea Prices Fall On Higher Arrivals - Dec 01, 2008

There was improvement in arrivals at the Kochi tea auction that led the prices continued to fall. At the leaf auction, exporters were active in both the orthodox and CTC grades. Interstate buyers operated with less strength. In the meantime, at the dust tea auction, exporters were less active. CTC dust witnessed a fair demand from blenders who were pursuing quality. Domestic buyers were also subdued participants at the market. There was 12,74,000 kg of dust tea on offer where good medium CTC prices eased. Popular CTC grades, especially the finer grades remained steady. Plain CTC and medium orthodox prices tended to ease. Best CTC grades fetched Rs 82-108, medium CTC was at Rs 70-80 and below medium quoted Rs 59-63. Medium BOPD was at Rs 53-54.

There was 4,74,000 kg of leaf tea on offer at the auction where high grown and medium orthodox grades quoted lower. There was less general demand for CTC grades. Prices of CTC broken grades and fannings eased. Best Nilgiri varieties quoted Rs 70-82, medium orthodox was at Rs 55-65 and plain orthodox was at Rs 50-53. Best CTC leaf fetched Rs 67-72 while medium CTC leaf quoted Rs 62-65.