Oil Is Little Changed, Close to One-Year High, as Demand Outpaces Supplies

(Bloomberg) -- Crude oil fell from the highest in
almost a year amid speculation U.S. fuel stockpiles increased
last week.

Crude oil for September delivery slipped 38 cents, or 0.5
percent, to $76.64 a barrel at 10:05 a.m. on the New York
Mercantile Exchange. Futures reached $77.33 today, the highest
intraday price for a front-month contract since Aug. 9.


Read more at Bloomberg Commodities News

Australian Dollar Set for Record Winning Streak as Commodities Prices Rise

(Bloomberg) -- The Australian dollar headed for a
12th day of gains, the longest winning streak since it was
allowed to trade freely in 1983, as the prices of raw materials
the country exports rose.

The currency traded near an 18-year high as the Westpac
Commodity Futures Index, an export weighted average of exchange-
traded commodity futures prices, advanced 4.5 percent to an all-
time high. The local dollar has surged 17 percent over the past
12 months as demand from China pushed up prices of raw materials,
which add about 14 percent to Australia's economy.


Read more at Bloomberg Currencies News

Gold ticks up on oil, Tokyo futures at 2-week high

(Reuters) - By 0345 GMT, cash gold was trading at $654.40/655.00 an ounce from $653.80/654.60 late in New York on Friday, when it rose more than $4 an ounce.




"Fresh funds are flowing into gold as we're in the early part of the third quarter, although the market is still nervous because of uncertainty over the outlook for global interest rates," said Shuji Sugata, manager at Mitsubishi Corp Futures and Securities.


Read more at Reuters.com Hot Stocks News

Oil Rises Above $72 on Nigerian Supply Concerns, U.S. Gasoline Shortfall

(Bloomberg) -- Crude oil rose above $72 a barrel in
New York, a 10-month high, on concern that unrest in Nigeria may
curb oil shipments and unexpected shutdowns at U.S. refineries
will cut fuel production.

Nigerian gunmen kidnapped a three-year-old daughter of a
British expatriate on her way to school in the southern oil city
of Port Harcourt, a police spokesman said. Five contractors were
seized yesterday from a rig operated by Royal Dutch Shell Plc's
Nigerian venture. Futures pared gains after the Energy Department
reported that U.S. oil and fuel supplies rose last week.


Read more at Bloomberg Commodities News

Canadian Dollar Volatility Surges as Investors Buy Protection Amid Surge

(Bloomberg) -- Volatility on options for the
Canadian dollar is at the highest since January as investors use
the derivatives to protect against the greater-than-anticipated
rally against the U.S. currency.

Futures traders, who speculate on currencies, now hold
record bets Canada's currency will strengthen, a reversal from
record so-called net shorts in January, according to figures from
the Washington-based Commodity Futures Trading Commission.


Read more at Bloomberg Currencies News

JGBs fall on BOJ rate view, short covering stalls

(Reuters) - Futures initially pulled further away from a seven-year low
as the market followed a gain in U.S. Treasuries, only to run
into selling by domestic banks, market participants said.




"A Treasury-led rise in early trade had its limitation as the
market continues to expect the BOJ to boost interest rates in
coming months," a senior trader at a European brokerage said.


Read more at Reuters.com Bonds News

South African Corn Prices Advance on Concern Rain May Delay Planting

(Bloomberg) -- Corn prices in South Africa, the
biggest producer of the grain in Africa, rose on concern that
rain may delay planting.

``The rain is playing a part,'' Gerhard Pfaff, a commodity
trader at Pretoria, South Africa-based Degro Futures Ltd., said
in an interview. ``It's delaying plantings in corn-growing
areas.''


Read more at Bloomberg Commodities News

Treasuries Increase After May Job Growth Is Less Than Forecast in the U.S.

(Bloomberg) -- U.S. Treasuries rose the most in
almost three weeks after a report showed private-sector job
growth was less than forecast this month.

Lehman Brothers Holdings Inc. and Action Economics are among
firms that lowered expectations for job growth two days before
the Labor Department's employment report for May. Futures traders
raised bets the Federal Reserve may lower borrowing costs if
employment growth slows.


Read more at Bloomberg Bonds News

Treasury 10-Year Yield Rises to Highest Since January on New-Home Sales

(Bloomberg) -- Treasuries fell, pushing yields
on benchmark 10-year notes to the highest level since
January, on a sign of housing strength and comments from
Federal Reserve policy makers that inflation remains their
primary concern.

Futures traders pared bets this week that the central
bank will lower interest rates after a government report
showed the biggest rise in new-home sales in 14 years.
Richmond Fed President Jeffrey Lacker said investors may be
underestimating the central bank's resolve to lower
inflation.


Read more at Bloomberg Bonds News

European Government Notes Drop for Third Week as Consumer Confidence Rises

(Bloomberg) -- European two-year government notes
logged a third weekly drop after a report added to evidence of
optimism among consumers in Europe's largest economy.

Benchmark two-year yields held near the highest in five
years after a report showed German consumer confidence rose to a
five-month high in June as households raised their income
expectations due to an improved economic outlook. Futures
trading shows investors are adding to bets the European Central
Bank will increase interest rates at least twice more this year.


Read more at Bloomberg Bonds News

Shanghai Copper Rises From Eight-Week Low As Economic Growth Helps Demand

(Bloomberg) -- Shanghai copper futures rose by as
much as 4 percent from an eight-week low in early trading,
recovering following gains in overseas markets amid speculation
that global economic growth will support demand for the metal.

The contract for August delivery on the Shanghai Futures
Exchange reached 63,800 yuan ($8,325) a ton, up 2,440 yuan from
the previous close. It traded 1,970 yuan, or 3.2 percent higher,
at 63,330 yuan a ton at 9:49 a.m.


Read more at Bloomberg Commodities News