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International News • As Hugo Chavez fights for his life, Cuba fears for its futur

As Hugo Chavez fights for his life, Cuba fears for its future

http://www.telegraph.co.uk/news/worldne … uture.html

Venezuela is not the only Latin American nation that is monitoring every moment of president Hugo Chavez’s illness. His ally Cuba has relied on him for economic help, and that could soon come to an end.
By Philip Sherwell, and Andrew Hamilton in Havana
5:10PM GMT 12 Jan 2013

Away from the constitutional wrangles and impassioned crowds of Caracas, the future of Venezuela after Hugo Chavez is being plotted this weekend in an elegant pre-revolutionary mansion in Havana’s old playboy quarter.

The firebrand Venezuelan president is fighting for his life in a nearby hospital, stricken by severe respiratory problems and a lung infection after his latest round of surgery for cancer.

His illness left him unable to be sworn in for his fourth term as president last Thursday, having won a close-fought election in October.

But for his Cuban hosts, much more is at risk than simply the loss of a fellow left-wing Latin American radical who has long venerated Fidel Castro. His death would also put at risk the remarkable oil-fuelled largesse that has allowed Cuba to cling to its experiment in tropical communism.

Thanks to the close personal relationship between Mr Chavez and Mr Castro, energy-rich Venezuela supplies more than 100,000 barrels of dirt-cheap oil a day to Cuba – an estimated 50 per cent of the island’s petroleum needs.
Venezuela also hires tens of thousands of Cuban doctors and teachers to work in its barrio slums, propping up the Cuban economy to the tune of some $6 billion a year in total. Without that subsidy, Havana would have long ago been forced to introduce market reforms to its communist regime.

Nothing has been heard or seen of Mr Chavez for more than a month and few expect him to recover – if indeed he is still alive. So it is little wonder that Cuba is desperate to exercise maximum control over his passing – and in particular manoeuvre a handover of power to Nicolas Maduro, his vice-president.

Mr Maduro, who arrived back in Havana on Friday night for fresh talks at the government-owned "protocol villa", shares Mr Chavez’s absolute loyalty to Cuba. But there are others within the Venezuelan elite who are less convinced of the merits of subsidising Cuba with an economic lifeline at a time when inflation and debt are soaring in Venezuela itself, despite the country’s oil wealth.

Also arriving in Havana on Friday to pay what might be their final respects to Mr Chavez were Cristina Kirchner, Argentina’s populist president, and Peru’s left-wing head-of-state Ollanta Humala, For months, Mr Maduro has been commuting in an unmarked government jet between Caracas and Havana, ferrying messages from the ailing president as well as liaising with the Cuban leader, Raul Castro, and his older brother Fidel.

Amid all the intrigue, Mr Chavez is being treated at the jewel in Cuba’s health system, the Medical Surgical Research Centre (known by its Spanish acronym CIMEQ), the same hospital where Fidel Castro was treated for a near-fatal stomach condition after his collapse in 2006.

Chavez aides have given no update on his condition for more than a week, fuelling speculation that he is close to death. Unlike after previous surgeries, there have been no photos or videos since the mid-December operation, not even a phone call to state radio or television.

More than anything, it is this silence of the normally garrulous leader that indicates the seriousness of his condition.

The lack of specifics about Mr Chavez’s health is not surprising for top-level patient in Havana. Mr Castro’s own medical condition is treated as a state secret and and Mr Chavez’s decision to undergo surgery in Havana meant that he could be assured near total privacy. What is known, though, is that he has undergone surgery four times as well as chemotherapy and radiotherapy since his cancer diagnosis in mid-2011. That he chose to entrust his life to Cuba’s medical system rather than his own is also regarded by many Venezuelans as a telling indictment of the state of health service in his own country.

Although President Chavez declared himself to be "cancer free" last year during a hard-fought election battle, it is believed that he was told from the start that the prognosis was grim.

And the Cuban connection may have further harmed his health last year when his Cuban mentors insisted that he return to the electoral fray in Venezuela, even when doctors would have preferred him to rest after previous surgery.

"The key to Cuba’s influence lies in the visits made to Cuba by Chavez on a continuous basis, almost monthly," Gustavo Coronel, a Venezuelan opposition politician and oil industry executive, told The Sunday Telegraph.

"The number of these visits is in the hundreds over the years, starting in 2000 and becoming routine affairs as Chavez became dependent on Castro’s advice.

"Chavez was hooked on Castro.

"It is Castro that convinced him to treat his ailments in Cuba. This would probably cost him his life, as it is now suspected that the procedures he underwent in Cuba did not include the best modern protocols."

Whether Mr Chavez lives or dies, and who succeeds him, matters as much to Cuba as Venezuela itself. Indeed, his health amounts to a vital economic statistic in Havana.

It would be a "disaster" for Venezuelan subsidies to dry up, according to Carmelo Mesa-Lago,a Cuban-born US economist. "If this help stops, industry is paralysed, transportation is paralysed and you’ll see the effects in everything from electricity to sugar mills," he said.

Even as Chavez-directed funds have poured into Havana, Cuban advisors work in the very highest echelons of the Venezuelan executive. The president’s elite security team is trained by Cubans, and the Venezuelan intelligence service is now run under a similar structure to Cuba’s feared G2 Intelligence agency, itself based on former East Germany’s Stasi network.

The mass marches which regularly take place in Venezuela, in which loyal supporters are encouraged to attend political rallies with the promise of free alchohol and transport, are indentkit copies of the revolutionary model perfected in Cuba under Fidel Castro.

It was the Castro brothers, experts in political longevity against the odds, who were instrumental in working out how "21st century socialism" in Venezuela, and in turn Venezuela’s generous handouts to Cuba, could survive without Mr Chavez himself.

The doomsday scenario for Havana would be fresh elections in which the opposition triumphed. In an interview with The Sunday Telegraph before the October vote, Henrique Capriles, the Venezuelan opposition leader who lost the presidential race to Mr Chavez last year, pledged that he would halt the "gifts" of free or heavily-subsidised oil ideological allies on day one in office.

But there is also danger for the Castro brothers within the Chavista camp if a more nationalist-minded faction was to prevail. The Cubans are particularly wary of Diosdado Cabello, a former army comrade of Mr Chavez who is now the head of Venezuela’s National Assembly, who is thought to be rather cooler about the bilateral relationship.

Under the Venezuelan constitution, if Mr Chavez dies or is finally designated too sick to govern, then Mr Cabello would become caretaker president until new elections were called. So it was the Castros who persuaded Mr Chavez to leave his sick bed on Dec 9, travel to Caracas, and very publicly endorse Mr Maduro as his chosen successor.

Mr Chavez has not been seen since his return. It looks increasingly likely that his last public act was also his final political gift to his beloved mentors in Havana.

Statistics: Posted by DIGGER DAN — Tue Jan 15, 2013 8:09 am


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International News • Egypt fears run on its banks as it imposes limit o

Egypt fears run on its banks as it imposes limit on amount people can withdraw

http://www.dailymail.co.uk/news/article … hdraw.html

Egypt has imposed a limit of £6,000 for people wishing to take money out of the country

By Mail Foreign Service

PUBLISHED:23:57 GMT, 26 December 2012| UPDATED: 23:57 GMT, 26 December 2012

Egypt has imposed a limit on the amount of money people can take out of the country, amid fears of an impending run on the banks.

The move to ban leaving with more than £6,000 came as thousands of Egyptians withdrew savings from banks to hoard cash at home.

Anxiety about a deepening political and economic crisis has gripped the country in past weeks, with many people rushing to buy dollars and take out their savings from banks.
Big business: A vendor sells nuts in front of a giant poster of a U.S. dollar outside a currency exchange office in Cairo as the Government announced a £6,000 limit on how much can be taken out of the country

As well as huge political problems, the country also has a faltering economy.

The panic came as the country’s new president, Mohammed Morsi, called for ‘unity’ after a referendum approved a controversial constitution which gave him and islamist allies more powers.

The new charter, which the secularist opposition says betrays Egypt’s 2011 revolution by dangerously mixing religion and politics, has polarised the Arab world’s most populous nation and prompted occasionally violent protest on the streets.

Results announced on Tuesday showed Egyptians had approved the text with about 64 percent of the vote, paving the way for a new parliamentary election in about two months.
Preparing for a fight: Riot policemen are seen on guard as the Shura Council met earlier today in Cairo
Controversial: Egyptian President Mohamed Morsi, seen here voting on the referendum, called for unity after a majority voted in favour for the new constitution

The government has begun a series of meetings with businessmen, trade unions, non-governmental organisations and other groups to persuade them of the need for tax increases and spending cuts to resolve the country’s financial crisis.

Mursi has committed to such austerity measures to receive loans from the International Monetary Fund.

While stressing the importance of political stability to heal the economy, Mursi’s government has sought to play down economic woes and appealed for unity in the face of hardship.

‘The government calls on the people not to worry about the country’s economy,” Parliamentary Affairs Minister Mohamed Mahsoub told the upper house in a speech.

‘We are not facing an economic problem but a political one and it is affecting the economic situation. We therefore urge all groups, opponents and brothers, to achieve wide reconciliation and consensus.’

Read more: http://www.dailymail.co.uk/news/article … z2GNJt8kdV
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Statistics: Posted by DIGGER DAN — Fri Dec 28, 2012 1:13 pm


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Agriculture • German, UK fears stymie revival in EU wheat hopes

German, UK fears stymie revival in EU wheat hopes
The revival in hopes for the European Union wheat harvest went into reverse as German farmers raised doubts over forecasts of increased production, and the UK crop was identified as ripe for downgrades.

Deutscher Bauernverband (DBV), the German farmers’ association, pegged the domestic wheat harvest at 21.9m tonnes, well below last year’s 22.7m-tonne harvest, which many analysts have forecast will be exceeded this year.

Strategie Grains, the influential analysis group, last week lifted its forecast for the German wheat crop, the European Union’s second biggest, to 23.4m tonnes, as it raised its estimate for the bloc’s total harvest, including durum, by 1.9m tonnes to 133.3m tonnes.

The DBV downgrade reflected localised cases of "massive winterkill" in a February cold snap which had prompted large-scale resowings of wheat fields typically with other crops. Spring wheat area expanded by some 50%, but to a relatively small 153,000 hectares.

‘UK downgrades ahead’

The data followed a caution from broker FCStone over the damage to wheat prospects in the UK, the EU’s third-ranked producer, thanks to persistent rains which have cut hopes for a rise in sowings being reflected in extra production.

"Results coming from the field in the UK continue to foster a large degree of variability, with test weights and falling numbers falling and premiums for quality receiving plenty of support," the broker said.

"At least 1m tonnes will be shaved from UK wheat output estimates, taking it down to the mid-to-low 14m-tonnes range," compared with 15.3m tonnes last year.

With prospects for quantity, as well as quality, UK wheat users have been importing from continental European countries such as Denmark, as well as Germany, an important source of harder milling varieties, Agrimoney.com has been told.

Quality factor

Indeed, Deutscher Bauernverband acknowledged the support to crop quality from an improvement in weather towards the end of the growing season.

UK wheat production and (plantings)

2012-13: "mid-to-low 14m tonnes", (2.01m hectares)

2011-12: 15.26m tonnes, (1.97m hectares)

2010-11: 14.88m tonnes, (1.94m hectares)

2009-10: 14.08m tonnes, (1.78m hectares)

2008-09: 17.23m tonnes, (2.08m hectares)

Sources: Agrimoney.com, Defra, HGCA
With recent weather "mostly good, winter wheat could be harvested often with satisfactory moisture content", reducing the need for drying and protecting protein levels in many key growing areas.
At FCStone, Jaime Nolan Miralles said: "The big issue was about quality more than quantity," given earlier fears that the French crop, the EU’s biggest, and largely of soft milling varieties, had suffered significant weather damage too.

"On that score, we got out of jail with France to a large extent," given a late turn drier in the weather. "It looks like something similar happened in Germany too."

Malting barley

The DBV was more upbeat over Germany’s barley production, pegging it at 9.8m tonnes, a rise of 12% year on year, with hopes of substantial amounts of spring crop making malting grade.

Spring barley was of "generally good quality", and largely of lower protein levels, below 11.5%, demanded by brewers.

With France too appearing to have harvested a good-quality spring barley crop, prospects appear good for malting barley supplies outside the UK, where Scotch whisky distillers may be forced to look outside Scotland for supplies.

For rapeseed, the association foresaw a recovery in production to 4.4m tonnes, thanks to a recovery to 3.4 tonnes per hectare in the average yield.

Contract high

On the London futures market, feed wheat for November delivery rose 1.0% to a fresh contract high of £208.60 a tonne as 15:15 UK time (09:15 Chicago time), contrasting with falls in the grain on other markets.

London prices are being given an extra boost by the prospect of the Ensus bioethanol plant in northern England reopening, with capacity for more than 1m tonnes of wheat a year, with the Vivergo plant, of similar size, set for launch in the fourth quarter.

In Paris, soft milling wheat was 0.1% lower at E267.50 a tonne, while Chicago’s December lot was 0.5% lower at $9.17 ½ a bushel.

http://www.agrimoney.com/news/german-uk … -4902.html

Statistics: Posted by yoda — Wed Aug 22, 2012 3:21 pm


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Agriculture • US dryness fears shift south as wheat sowings near

US dryness fears shift south as wheat sowings near
The southern Plains, the seat of drought in the US last year, revived as a centre for this year too, seeing its crops continue to deteriorate even as those in much of the Midwest improved – and ahead of the important wheat sowing period.

The US Department of Agriculture, for a third week, rated domestic corn as 23% in "good" or "excellent" health, showing no further deterioration towards the levels of 1988, the last year drought caused such devastation to US crops.

Soybeans were rated at 31% in good or excellent health as of Sunday, an increase of 1 point on the week, if still the worst figure since 1988, and an improvement at the bottom end of market expectations.

Reports of poor yields, below even USDA expectations, were revealed on Monday on the first day of the ProFarmer tour of major US row crop areas.

‘Continued to deteriorate’

However, the overall USDA crop condition data concealed a difference in experience between states – crops in parts of the southern Plains continued to deteriorate, even as those in much of the Midwest improved.

While some of the Plains state of Oklahoma received rainfall last week, more than half did not and overall the rains "provided no significant improvements to conditions", USDA officials said.

"Concerns about aflatoxin in corn were reported," they added, a reference to a fungal residue commonly found in crops stressed by drought.

In Kansas, "row crop conditions continued to deteriorate last week as the state received only scattered rainfall", they said, cutting their good or excellent ratings of Kansas soybeans by two points to 3%, and of corn by three points to 5%,

"While average temperatures dropped last week, continued lack of precipitation still plagues farmers," the USDA staff said.

‘Greened up considerably’

The comments contrasted with those from Midwest states such as Indiana, where rains allowed soybeans to recover by four points to 20% rated good or excellent.

"Rain showers helped to improve drought conditions with less than half the state still in extreme-to-exceptional drought conditions compared with nearly 70% on July 31," the USDA said.

"Pastures and hay fields have greened up considerably in the last two weeks.

"Later-planted soybeans are benefitting from the recent rainfall with additional growth and pod fill," besides lower spider mite activity and reduced aflatoxin risk in corn.

‘Tight grip of drought’

The concerns over the southern Plains are particularly important since the region is a major winter wheat growing area – Kansas is the top wheat-growing state – and with farmers preparing for sowings, potentially into dry ground.

The USDA warned last week that "prospects in most of the winter wheat area are not good especially in the western winter wheat area of the southern Plains".

At broker RJ O ‘Brien, Richard Feltes highlighted data showing the condition of the US sorghum crop continuing to decline, by two points to 23% good or excellent, "underscoring the tight grip of drought in the southern Plains".

http://www.agrimoney.com/news/us-drynes … -4896.html

Statistics: Posted by yoda — Tue Aug 21, 2012 6:44 am


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Canadian • CIBC Calls For More Stimulus Amid Double Dip Recession Fears

CIBC Calls For More Stimulus Amid Double Dip Recession Fears

http://www.huffingtonpost.ca/2012/07/30 … 19506.html

OTTAWA – The economic clouds gathering beyond Canada’s borders are so ominous that at least two bank economists recommend Canadian governments, and particularly Ottawa, start thinking about a contingency plan should the world be plunged into a second crisis — further stimulus spending.

CIBC chief economist Avery Shenfeld, who cautions that another recession is not in his baseline forecast as yet, believes Canada’s best response to a new crisis should not be for the Bank of Canada to cut interest rates further.

That would merely stimulate an already overheated housing market and lure even more households to take on debt that is already at record levels.

Rather, Shenfeld recommends that the federal government do the borrowing and use the money for a second round of stimulus spending, on needed infrastructure such as roads and power projects that will serve the economy well into the future.

Ottawa is well-placed for a second round of deficit-spending because its books are relatively sound, and could borrow at very low rates. He says the government could actually wind up richer rather than poorer by borrowing now.

"Ten-year rates have been below two per cent, and if you take on inflation, the economy might be growing long term at something like four per cent in nominal terms," he explained.

"So if you can create some additional room for economic activity because you’ve built things the economy needs, it could pay off in future tax revenue flows that pay the interest."

The Canadian economy is broadly expected to keep growing at about two per cent in the current year, and in 2013, a weaker recovery than earlier predicted but still well north of actual contraction.

Canada appears set to print an against-the-grain month of healthy growth for May in fresh data set for release Tuesday. But even on the island that so far has been Canada’s economy, May’s gross domestic product report from Statistics Canada isn’t likely to change economists’ minds about where they economy is headed.

The consensus among analysts is that the data will show a gain of 0.2 per cent, with some analysts thinking it will be as high as 0.3 per cent, matching the strongest monthly tallies since last July.

Shenfeld says May’s performance won’t likely be repeated in June — or the next few months afterwards — given troubling signals from around the world, and especially Europe.

"As Europe struggles through a recession and America’s economy continues to disappoint, markets are focused on the downside risks … so much so, that for some weeks, a small interest rate cut was priced into Canada’s yield curve," he writes in a new paper titled "Canada’s Plan B."

Shenfeld said he is not recommending Ottawa bring in stimulus now, although he thinks it would be a good idea for the United States.

"The U.S. has a huge reservoir of unemployed construction workers, and by putting them back to work, the government would actually generate additional tax revenues and economic growth that could cover the future costs (of borrowing)."

It’s not every day that bank economists argue the benefits of government intervention in the economy, especially on borrowed money. But Shenfeld’s thesis gets some support from Doug Porter of the Bank of Montreal as well.

Like Shenfeld, BMO’s deputy chief economist says Ottawa should not push the panic button on a second round of stimulus until it is needed, although given the lag time in getting useful infrastructure projects going, it would be wise to draw up contingency plans.

Speculation around global recession has mounted as Europe’s problems look more and more intractable.

"I think something did shift for a lot of economists sometime late last year and early this year," Porter explained.

"A lot of people got a lot more concerned about the medium term realizing that Europe had years and years of challenge ahead of it, and the U.S. is also unlikely to break free with strong growth."

In fact, the U.S., which was expected to outperform Canada in growth this year, is being sideswiped by Europe to an ever greater degree than its northern neighbour. It has already reported an anemic 1.5-per-cent annualized growth rate for the second quarter, while Canada is expected to hit near two per cent in the April-June period.

Still, the longer-term prospects for Canada appear to be muted growth at best. Apart from Europe, the domestic economy is being weighed down by heavy consumer debt, which dampens spending, and weak exports.

That leaves business investment to do the heavy lifting.

But although firms are flush with cash, capital investment on such things as machinery and equipment is not a big enough part of the economy to sustain a strong recovery, noted David Madani, chief economist with Capital Economics.

"All things considered, we forecast business investment growth of about 4.5 per cent in 2012 and close to four per cent in 2013," he said. "Unfortunately, this growth is only enough to buffer the anticipated slowdown."

The enthusiasm over the May report being released in Ottawa at 8:30 a.m. Tuesday is based on previously reported indicators, including positive readings for sales, manufacturing and wholesale trade. As well, hours worked grew during the month, a strong signal of increased output.

The possible wild card in the expectation, said Scotiabank economist Derek Holt, is the possibility of soft energy sector activity due to ongoing production disruptions.

Statistics: Posted by DIGGER DAN — Wed Aug 01, 2012 2:17 am


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Agriculture • Quality fears cloud upgrade to French wheat hopes

Quality fears cloud upgrade to French wheat hopes
Fears for quality took some of the shine off an estimate by FranceAgriMer that the French wheat crop will come in well above previous expectations, and up 1.9m tonnes year on year.

The French farm bureau, in its first official forecast for the crop, pegged it at 35.9m tonnes, above a preliminary estimate of 34.4m tonnes besides projections from other commentators.

Strategie Grains estimates the crop at 35.1m tonnes, industry group Coceral 35.2m tonnes and the AGPB growers group at 33.9m tonnes.

The FranceAgriMer estimate, adding in a durum crop pegged at 2.1m tonnes, is also 1.0m tonnes above the US Department of Agriculture latest forecast for the total French wheat harvest, the European Union’s biggest.

‘People are getting concerned’

The upgrade reflects the impact of rains in refreshing crops threatened by dryness earlier in the year, following an earlier setback to winterkill during a February cold snap.

However, in some areas the extent of the rains, so close to harvest, has raised concerns that a crop, while better on quantity than initially feared, may fall short on quality in a country which is a major supplier of softer milling wheat.

"It is nowhere near panic stations, but people are getting concerned," Jaime Nolan Miralles, commodity risk manager at FCStone’s European operations, told Agrimoney.com.

"We will have to see how the harvest goes when it reaches the north," and French regions such as Lorraine and Normandy where concerns are particularly high.

Price impact

With Spain, a major grain importer, set for a small, drought-hit harvest, the fears were beginning to feed through into prices, Mr Nolan Miralles added.

In Germany, milling wheat premiums this week reached E13 a tonne, up from E8 a tonne a week before.

Paris milling wheat futures for November delivery have risen by some 16.5% over the last month, compared with 14.2% rise, in euro terms, in London feed wheat for November.

Fungal residues

In the cash market in the UK, where rains are also proving heavy and persistent, milling wheat premiums in the north west of England have risen some £7-8 a tonne to about £40 a tonne since mid-June, Jonathan Lane, trading manager at merchant Gleadell, said.

"Historically, a premium of about £40-45 a tonne I have always seen as a sell. But today would I sell? I’m not so sure," given the quality concerns.

While it was still too early to call damage to wheat quality being compromised on some criteria, such as the hagberg falling number, more rain could mean diseases "starting to be an issue", and the risk of elevated levels of toxic fungal residues.

http://www.agrimoney.com/news/quality-f … -4728.html

Statistics: Posted by yoda — Fri Jul 06, 2012 7:44 am


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Agriculture • Wheat prices extend rally as crop fears ratchet up

Wheat prices extend rally as crop fears ratchet up
Wheat prices extended their rally on both sides of the Atlantic, closing in London at their highest in nearly three months, as reports on crops from Argentina to Russia chipped away at production hopes.

Wheat for July stood 2.0% higher in late deals in Chicago, taking gains this week above 10%, while in London the best-traded November lot ended up 1.0% at £161.25 a tonne, the highest finish since late March.

The gains came amid a fresh round of downbeat reports on world crops, including the tumbling condition of spring grains in the major Canadian producing province of Saskatchewan, where some parts received four inches of rain in a week.

In Argentina, where farmers are being deterred from the grain by export restrictions, the government overnight forecast wheat sowings at 3.82m hectares, the lowest area for decades.

The country, even on a harvested basis, has not seen a lower area since 1970-71, when farmers reaped 3.70m hectares, according to US Department of Agriculture data.

‘Low yields’

Meanwhile, a string of reports from the former Soviet Union reported disappointing yields from early harvest of winter grains.

In Russia’s drought-hit Rostov region, local farm officials reported grain yields of 1-1.3 tonnes per hectare in eastern areas, although on southern farms, where heat has had less of an impact, results were coming in at 3.2-3.4 tonnes per hectare.

In Ukraine, initial harvest had shown "low yields" of about 2 tonnes per hectare, Agritel said, adding that the national crop looked like coming "lower than 8m tonnes, close to 7.7m tonnes" compared with 9m tonnes last year.

A European commodities house with significant Black Sea agricultural interests noted an unnamed Ukrainian company reporting a yield of "1.6 tonnes per hectare rather than the 4.3 tonnes of last year".

"Quality is also disappointing with low specific weights and talk of disease and insect damaged grains."

German upgrade

The European Union offered some better production news, with grain trader Toepfer International raising to 22.71m tonnes, from 21.49m tonnes, its forecast for the German crop.

That put a small rise in production from last year’s 22.70m-tonne crop on the cards, besides topping a 22.5m-tonne estimate from Strategie Grains last week, and a 21.3m-tonne forecast from farmers.

In France, FranceAgriMer kept at 73% its estimate of the domestic soft wheat crop, the EU’s biggest, rated in "good" or "excellent" condition, up from 27% a year ago, when the country suffered an unusually dry spring.

"That’s not going to tip the needle much against everything else going on," a UK grain trader told Agrimoney.com.

"There’s not a panic on. But buyers are being made to work that bit harder."

http://www.agrimoney.com/news/wheat-pri … -4675.html

Statistics: Posted by yoda — Fri Jun 22, 2012 1:31 pm


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Agriculture • Fears for US dryness spread to livestock industry

Fears for US dryness spread to livestock industry
Concerns about the impact of US dryness on crops have spread to livestock, with a warning that, with pasture conditions deteriorating, there is "plenty of room for worry" among cattle ranchers.

One of the major drivers in Chicago feeder cattle futures to record a high, on a spot lot basis, close to 160 cents a pound has been the switch to buying by southern US ranchers, who last year sold-down herds as a long-running drought dried up paddocks.

The proportion of Texas pasture rated "good" or "excellent" by the US Department of Agriculture stood at 27% as of Sunday, up from 9% in early June last year, and in Oklahoma at 50%, compared with 29% a year before.

Ranchers’ increasing willingness to rebuild herds is also evident in a reduced slaughter rate, which fell 16.5% last month, with a particular drop in beef cow liquidation in the south, a sign of producers keeping hold of breeding stock.

Nationwide decline

However, the improvement in southern grass condition, even to relatively weak levels in Texas, has not been mirrored elsewhere, with pastures nationwide rated 47% in good or excellent health, down from 53% a year before.

Missouri now shows as one of the states with the worst pasture condition, of 28%, compared with 64% a year ago.

"Pasture conditions are worse than a year ago and the 10-year average despite a significant improvement in the situation in Texas and Oklahoma," a report by Paragon Economics and Steiner Consulting said.

"The dividends of a warm winter and improved moisture conditions have largely been had," the briefing said, adding that the question now was whether dryness would force a revival in cow slaughter rates.

"Some early indications show that despite improvements in areas hit by drought last year, there is plenty of room for worry."

Drought conditions

The comments come amid broader concerns over dryness in the Midwest which have led many analysts to question US Department of Agriculture forecasts for a record corn yield, of 166 bushels per acre, although USDA chief economist Joseph Glauber on Thursday urged caution over reduced estimates.

Official data on Tuesday rated more than half the Midwest as suffering abormally dry or drought conditions, compared with 1.2% a year before, besides 71% of the High Plains, up from 21%.

"A number of areas in the Midwest have experienced below-normal precipitation in the last month, negatively affecting pastures," Paragon and Steiner said.

In the South 85% was still unusually dry, although the severity of the moisture shortages were generally lower than a year before.

"If current conditions continue, then we will likely see more pressure around the country. Herd rebuilding will have to wait for another year."

http://www.agrimoney.com/news/fears-for … -4615.html

Statistics: Posted by yoda — Mon Jun 11, 2012 5:39 am


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International News • China to cut bank reserves as ‘hard landing’ fears continue

The People’s Bank of China, the central bank, said it would cut banks’ reserve requirements by 0.50 percentage points effective from May 18, according to a statement posted on its website.
The move was widely expected after China reported growth in industrial production slumped to a three-year low of 9.3pc in April, adding pressure on Beijing to ease monetary policy.
Sebastien Galy, senior currency strategist at Societe Generale, said: "This is a reaction to signs of a deeper slowdown than expected so that its positive impact outside of Chinese equities will be contained. Nonetheless policy makers are steadily starting to react the crisis (ECB, Fed still to come) which is encouraging."
China’s economy grew an annual 8.1pc in the first quarter of 2012, its slowest pace in nearly three years.
The government is targeting economic growth of just 7.5pc for the whole year, down from actual growth of 9.2pc last year and 10.4pc in 2010.

Beijing has already cut bank reserve requirements twice since December as it seeks to boost lending to spur growth, but economists have called for more policy support as economic figures continue to disappoint.
After the latest move takes effect, China’s reserve requirement for most large banks will fall to 20pc.
China also said on Friday that the consumer price index, the main gauge of inflation, rose 3.4pc year on year in April, compared with 3.6pc in March.

http://www.telegraph.co.uk/finance/chin … tinue.html

Statistics: Posted by yoda — Sat May 12, 2012 8:13 am


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Gold and Silver • Gold ‘to hit $2,000′ on Spain fears

By Emma Rowley1:00PM BST 11 Apr 201217 Comments
Rising fears about the region’s fourth largest economy will send a fresh flood of investment towards the “safe haven” metal, according to the annual report from Thomson Reuters GFMS.
Philip Klapwijk, global head of metals analytics at the consultancy, said: “We could easily see last September’s record high [a closing high of $1,900.23 on September 5] being taken out.
“A push on towards $2,000 is definitely on the cards before the year is out, although a clear breach of that mark is arguably a more likely event for the first half of next year.”
Demand for gold often sees a boost when fears about the situation in Europe intensify. The metal can likewise benefit from the prospect of more quantitative easing (QE), as investors seek to protect their wealth from the inflationary effects of central bankers’ actions.
In the shorter term, GFMS thinks the apparent abatement of the eurozone crisis and reduced expectations for a third round of quantitative easing or “QE3” in the US could drive the gold price lower, perhaps below $1,550 in the next couple of months.

However, GFMS expects any softening in the price to prove temporary as “acute” fears over eurozone sovereign debt, focused on Spain, resume.
Meanwhile it will become clear that the faltering US recovery will force the Federal Reserve into extra monetary stimulus, GFMS believes, while the newer economic powerhouses of China, India and Brazil will also become obliged to loosen their monetary policy.
“A corollary of all this monetary largess is fears about resurgent inflation, and that becomes all the more likely if oil prices motor higher, should tensions get any worse between Iran and the US,” said Mr Klapwijk.
The report found that total investment in gold actually dipped last year in tonnage terms, as selling in the futures and OTC (over the counter) derivatives markets – due to profit-taking and liquidity squeezes, which meant people cashed in on their gold holdings – outweighed a bumper year for physical investment.
None the less the strength of this buying meant that in value terms, net world investment rose in gold by 15pc to a record level of just over $80bn.
Gold was trading at around $1,660 an ounce in London on Wednesday morning.

http://www.telegraph.co.uk/finance/pers … fears.html

Statistics: Posted by yoda — Wed Apr 11, 2012 8:09 am


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