Crop Prices Trade Near Four-Year Lows on Output Prospects

Corn and soybeans traded near the lowest levels since 2010 in Chicago before a government report later today that may predict U.S. farmers will harvest the biggest crops on record.

U.S. production may total 13.93 billion bushels of corn and 3.79 billion bushels of soybeans, the most ever, according to a Bloomberg News survey before the U.S. Department of Agricultureupdates its outlook at noon today in Washington. Most crops are in good or excellent conditionafter ample rain, USDA data show. Cool weather in the Midwest will prevent heat stress on crops through next week, according to MDA Weather Services.

Corn for December delivery was unchanged at $3.9275 a bushel at 4:20 a.m. on the Chicago Board of Trade. The price touched $3.915 yesterday, the lowest since July 2010. Soybeans for November delivery were little changed at $10.925 a bushel, after earlier touching $10.92, the lowest since October 2010.

Global inventories of corn may rise to 184.47 million metric tons by the end of the 2014-15 season, the most since 2000, the Bloomberg survey showed. Soybean reserves at 84.69 million tons may be the highest ever.

Citigroup Inc. said soybeans may drop to $10.50 in the fourth quarter, while corn was seen at $3.70 a bushel, according to a report e-mailed yesterday.

Wheat for September delivery rose 0.2 percent to $5.495 a bushel, near yesterday’s four-year low of $5.4625. In Paris, milling wheat for November delivery was 0.1 percent higher at 182 euros ($247.74) a ton on Euronext.

Gold price dips 3.2 per cent to Rs 29,190/10 gm in 2013-14.

The average price of gold has eased by 3.2 per cent on an annual basis to Rs 29,190 per 10 gm in 2013-14, Parliament was informed today.

In the current fiscal, gold price has come down to Rs 28,738/10 gm in May from Rs 29,329/10 gm in April, said Minister of State for Finance Nirmala Sitharaman in a written reply to the Lok Sabha.

Silver prices too fell by 19 per cent from Rs 57,602/kg in 2012-13 to Rs 46,637/kg in 2013-14.co

"The yearly average price of gold in India decline by 3.2 per cent from Rs 30,164/10 gm in 2012-13 to Rs 29,190/10 gm in 2013-14," she said.

Besides, silver prices in May stood at Rs 42,116/kg, down from Rs 43,606/kg in April.

"The movements in the domestic price of gold and silver are broadly in tandem with movements in international markets," Sitharaman said.

In order to curb gold imports the government had hiked customs duty on it to 10 per cent and imposed certain restrictions on its imports.

Infosys Q1 net falls 3.5%, FY15 $ revenue to grow 7-9%

Infosys , the second largest software services exporter in India, has reported a consolidated net profit of Rs 2,886 crore in April-June quarter, degrowth of 3.5 percent compared to Rs 2,992 crore in previous quarter. Year-on-year growth in profit was 21.6 percent. Bottomline as well as operating performance were better-than-expectations while revenue was inline. According to CNBC-TV18 poll estimates, analysts had expected the company to report net profit oRs 2,667 crore on revenue of Rs 12,814 crore for the quarter. Consolidated revenue fell 0.8 percent (up 13.3 percent on yearly basis) to Rs 12,770 crore during April-June quarter from Rs 12,875 crore in previous quarter and dollar revenue stood at USD 2,133 million, up 1.95 percent on sequential basis. Analysts had estimated dollar revenue at USD 2140 million for the quarter.

European markets settle after Portugal-led rout

 European stocks opened firmer and lower-rated government bond prices edged up on Friday, as markets settled after a broad pullback overnight on concerns about Portugal's banking sector that highlighted contagion risk in the euro zone.

European shares were still on track to post a sharp weekly loss as investors reassess stretched valuations for global equities amid a slower-than-expected pace of economic recovery in the euro zone.

The pan-European FTSEurofirst 300 index opened 0.4 percent higher, buoyed by gains across the region. Portugal's PSI 20 index was up 1.5 percent after its biggest lender Banco Espirito Santo reassured investors overnight over financial troubles at its biggest shareholder.

Espirito Santo had plunged 19 percent on Thursday before trading was halted, sending ripples across Europe, U.S. and Asia trading and bucking a months-long trend of low volatility and positive sentiment for stock markets driven by steady monetary support from major central banks.

"The market is very confused at the moment with people not sure about the strength of the economic recovery and worries about structural issues that have not been resolved," Lex Van Dam, a hedge fund manager at Hampstead Capital, said.

Fixed income markets were cautious, with German bund futures trading flat. Peripheral euro zone bonds, a recent winner for return-hungry investors, saw yields track lower after a sharp rise on Thursday, with Portuguese 10-year yields dropping 10 basis points to 3.91 percent.

In the U.K., shares were buoyed by merger hopes, with Imperial Tobacco up 2.9 percent after saying it was in talks with Reynolds and Lorillard to acquire certain assets and brands that could be sold by the two companies.

Moves in Asia had been generally modest with share markets mixed. Hong Kong, South Korea, Taiwan and the Philippines lost ground but China, Singapore and Australia eked out gains.

The MSCI Emerging Market index was down 0.4 percent, with emerging stocks set for the biggest weekly loss since the end of May and Indian shares headed for their biggest weekly loss since the end of January.

Tata-SIA Airlines moves step closer

DGCA said that Tata-SIA is registered in India, with two-thirds of its directors being citizens of India, stated reports. Director General of Civil Aviation has reportedly said that there is no reason why the Tata-SIA Airlines application for an Air Operator Permit should not be considered. The regulator has rejected the objections raised by domestic carriers and other entities, which are likely to be affected by Tata-SIA’s foray into the domestic aviation space. DGCA said that Tata-SIA is registered in India, with two-thirds of its directors being citizens of India, stated reports. While the Tata Group owns 51 per cent, Singapore Airlines has a 49 per cent stake in the joint venture, which is to be based in New Delhi.

Crude Steel production at 3.10 million tons for Q1 2014-15

JSW Steel Ltd., belonging to the JSW group, part of the O P Jindal Group,  is one of the lowest cost steel producers in the world JSW Steel Limited reports quarterly Crude Steel production at 3.10 million tons for Q1 FY 2014-15 showing a growth of 8% over corresponding quarter of previous year. JSW Steel Ltd., belonging to the JSW group, part of the OP Jindal Group, is one of the lowest cost steel producers in the world. The group has diversified interest in mining, carbon steel, power, industrial gases, ports and cement. JSW Steel Limited is engaged in manufacture of flat and long products viz. HR Coils, CR Coils, Galvanised products, Galvalume products, Colour coated products, auto grade / white goods grade CRCA Steel, Bars and Rods. Incorporated in 1994, it has grown to about US$11bn. JSW Steel Limited is one of the largest producers and exporters of coated flat products in the country with presence in over 100 countries across five continents.

Europe Stocks Rise After Five-Day Drop, Pare Weekly Loss

European stocks advanced, as the Stoxx Europe 600 Index pared its weekly drop, rebounding from concern the region’s so-called peripheral countries are slipping back into trouble. U.S. index futures were little changed, while Asian shares fell.

Imperial Tobacco Group Plc advanced 2.9 percent after saying it is in talks with Reynolds American Inc. and Lorillard Inc. to buy some assets and brands. Symrise AG gained 4.2 percent after a report that Japan’s Ajinomoto Co. is interested in buying the German chemical manufacturer. Indesit Co. added 2.9 percent after Whirlpool Corp. agreed to pay $1 billion for a controlling stake in Italian appliance maker.

The Stoxx 600 rose 0.4 percent to 337.6 at 8:19 a.m. in London. The benchmark gauge has declined 3 percent this week as investors weigh valuations near the highest levels since 2009 amid concern the euro-area recovery remains fragile. Standard & Poor’s 500 Index futures climbed less than 0.1 percent today, while the MSCI Asia Pacific Index slipped 0.4 percent.

The Stoxx 600 fell 1.1 percent yesterday, falling for a fifth day, amid concern over the affairs of Banco Espirito Santo SA. Portugal’s central bank said the lender is protected after its parent didn’t make the payments on short-term paper.

Trading in Banco Espirito Santo SA was suspended yesterday. The lender has now disclosed an exposure of 1.18 billion euros ($1.6 billion) to companies of Grupo Espirito Santo after a group company missed some debt payments.

Banks in Portugal, Italy and Spain sank yesterday, sending an industry gauge to the fourth slump in five days. The value of equities in those countries and Greece is falling after rising 13 percent in the first six months of 2014, compared with a 2 percent gain for the market capitalization of stocks in the U.K., Germany and France.

In the U.K., house-price growth slowed in June as new mortgage regulations damped activity, a survey showed. Values in England and Wales rose 0.7 percent from May, when they had increased 1 percent, according to data complied by Acadata Ltd. Prices gained 9.6 percent from a year earlier to 268,637 pounds ($459,900), the real-estate research firm and LSL Property Services Plc said in a report.

IL&FS Engg up 5%, gets LOA for EPC pipeline laying contract

Shares of  IL&FS Engineering and Construction Company rallied 5 percent intraday Friday on getting LOA (letter of award) for EPC pipeline laying contract worth Rs 213 crore. "IL&FS has bagged an EPC contract from Indian Strategic Petroleum Reserves, Ministry of Petroleum and Natural Gas, Government of India, for laying of pipeline from land fall point, Mangalore port to Mangalore/Padur Cavern via intermediate valve station for storage of crude oil project," says the company in its filing. The total length of project is 50 Km and the project is to be completed within 15 months from the date of issue of LOA. The company is currently executing pipeline projects of Gujarat State Petronet on EPC basis and two oil & gas projects.

Gold set for sixth weekly gain, Portugal bank woes bring safe-haven bids

Gold added to sharp overnight gains to trade near its highest in almost four months on Friday and was on track for a sixth straight weekly gain as troubles at a Portuguese bank hammered equities and stoked safe-haven demand for bullion.

Spot gold inched up 0.3 percent to $1,338.20 an ounce by 0335 GMT, after closing up 0.7 percent on Thursday, when it rose to a peak of $1,345 - the metal's highest since March 19.

Gold has gained more than 1 percent this week. The sixth weekly gain would be gold's longest winning streak since Feb-March when it had a similar run.

Gold is getting a boost along with other safe-havens such as the Japanese yen and bonds, as European and U.S. stock markets fell on Thursday on investor fears over financial troubles at the family-owned holding companies behind Banco Espirito Santo.

Thursday's contagion across borders and markets is a vivid reminder of the crippling debt and economic crisis from which Portugal and other countries on Europe's southern rim are only just emerging.

Geopolitical tensions in the Middle East and Ukraine also continued to support gold, seen as an alternative investment to riskier assets such as equities.

In the physical markets, India surprised bullion markets by keeping the import duty on gold and silver unchanged at 10 percent in its fiscal budget, a move likely to limit overseas purchases by the second-biggest bullion consumer and further encourage smuggling.

Physical demand in other Asian countries was also weak due the recent jump in prices. In No. 1 buyer China, local prices have been on par with the global benchmark or at a discount, underscoring sluggish demand.

Among other precious metals, platinum and palladium were both headed for their fourth straight weekly gain, while silver was set for a sixth weekly rise as it tracked gains in gold.

Yuan set to fall slightly this week, underperforms midpoint

China's yuan fell against the dollar on Friday, with traders saying there was little evidence of strong dollar supply even after Beijing posted a second month of trade surpluses in June. 

The yuan slipped for a second day in a row and has mostly underperformed the official midpoint fixing during the week. 

Spot yuan eased to 6.2078 per dollar by midday, 0.08 per cent weaker than Thursday's close. 

In comparison, the People's Bank of China (PBOC) fixed its official midpoint at 6.1469, down 0.04 per cent from Thursday's fixing. 

China's trade performance improved in May and June, leaving a trade surplus of $31.6 billion in June alone.

However, the PBOC's foreign exchange assets, which mainly reflect its dollar purchases and sales on the yuan market, rose a mere 361 million yuan ($58.21 million) in May, the lowest growth since July last year, central bank data published this week showed. 

"The big difference between the PBOC's foreign exchange asset data and the trade surplus data means banks and their clients are holding a large amount of dollars on hand, resulting in much less dollar supply of late," said a trader from a Chinese commercial bank in Shanghai. . 

Dollar Heads for Worst Week Since April Versus Yen; Won Declines

The dollar headed for its biggest weekly decline versus the yen since April before Federal Reserve Chair Janet Yellen testifies to lawmakers next week and as traders trimmed bets the central bank will raise interest rates.

A gauge of the dollar was poised for its fourth weekly loss in five weeks as minutes of the Fed’s June meeting failed to provide additional insight on the pace of rate increases and record-lowvolatility encouraged demand for higher-yielding assets. The yen approached a five-month high versus the euro after a Portuguese banking company missed debt payments, boosting haven assets. South Korea’s won fell for a sixth day amid speculation the central bank will cut interest rates.

“The Fed is on the cautionary side despite data improving,” said Roy Teo, a currency strategist at ABN Amro Bank NV in Singapore. “With the current environment, where volatility remains low, the trend of carry trades remains in vogue and therefore you can see, to a certain extent, the dollar is underperforming.”

The dollar was little changed at 101.27 yen at 6:55 a.m. in London, having declined 0.8 percent this week, the most since the period ended April 11. The U.S. currency traded at $1.3599 per euro from $1.3609 yesterday. The yen appreciated 0.1 percent to 137.72 per euro after advancing to 137.50 yesterday, the strongest since Feb. 6.

Infosys Q1 profit up 21.6% at Rs 2886 crore, beats estimates.

Infosys, India's second largest software exporter, surprised the street with better-than-expected net profit while revenues were in line.

The company reported a net profit of Rs 2,886 crore for quarter ended June 2014, down 3.5 per cent, compared to Rs 2,992 crore in the previous quarter. ET expected Q1 PAT to be at Rs 2,653 crore.

Sales in remained stagnant at Rs 12,770 crore, down 0.8 per cent, as compared to Rs 12,875 crore.

The Bangalore-based IT major sees its dollar revenue for 2014-2015 growing at 7-9%.

Rupee down 6 paise against US dollar.

The rupee lost six paise to 60.25 against the US dollar in early trade today at the Interbank Foreign Exchange market due to appreciation of the American currency against other currencies overseas. 

Sustained demand for the dollar from importers also weighed on the local currency but a higher opening in the domestic equity market limited the rupee's losses, forex dealers said. 


Moving in tandem with equities, the rupee yesterday tumbled 44 paise, posting its biggest drop in nearly a month, to end at 60.19 against the dollar. 

Meanwhile, the benchmark BSE Sensex was up by 167.57 points, or 0.66 per cent, at 25,540.32 in early trade today.