Asia Commodities Day Ahead: EPA Refuses to Ease Biofuel Rule

Aug. 8 (Bloomberg) -- U.S. officials rejected Texas Governor Rick Perry's request to ease requirements on the use of corn-based ethanol. Corn, soybeans and wheat climbed. U.S. farmers are paying record prices for fertilizer, feed and fuel, which may be reducing profits as crop prices fall. Copper, gold and platinum declined. Cia. Vale do Rio Doce rose in Sao Paulo trading after second-quarter profit increased 22 percent.

AGRICULTURAL COMMODITIES

EPA Rejects Texas Request to Ease U.S. Biofuels Rule

U.S. officials rejected Texas Governor Rick Perry's request to ease requirements on the use of corn-based ethanol in gasoline, saying he didn't prove that the rules are straining grain supplies and causing ``severe economic harm.''

U.S. Farm Costs for Feed, Fertilizer, Fuel Surge

U.S. farmers are paying record prices for fertilizer, feed and fuel, which may be reducing profits as crop prices fall from all-time highs.

Corn, Soybeans Rise After Price Plunge Boosts Export Demand

Corn and soybeans rebounded in Chicago on speculation the price slump in the past five sessions will spur demand for shipments from the U.S., the biggest producer and exporter of both crops. Corn rose 14.25 cents, or 2.7 percent, to $5.42 a bushel. Soybeans gained 17 cents, or 1.4 percent, to $12.39 a bushel.

Wheat Surges Most Since June as U.S. Export Shipments Climb

Wheat soared the most since mid-June on speculation that importers will snap up supplies from the U.S., the world's biggest exporter, after prices plunged 41 percent from a record in February. Wheat rose 56.25 cents, or 7.1 percent, to $8.47 a bushel in Chicago.

Hogs Rise on Signs of Shrinking U.S. Pork Output; Cattle Fall

Hogs rose to a six-week high on speculation that high grain prices might force producers to sell animals to meatpackers at lighter weights. Hogs climbed 0.075 cent, or 0.1 percent, to 76.975 cents a pound in Chicago. Cattle fell 1.35 cents, or 1.2 percent, to $1.072 a pound. Feeder cattle dropped 1.325 cents, or 1.1 percent, to $1.15875 a pound.

PULP & PAPER PRODUCTS

AbitibiBowater May Speed North American Capacity Cuts

AbitibiBowater Inc., the world's largest newsprint maker, may accelerate cuts to North American production capacity if demand continues to contract faster than expected, Chief Executive Officer David J. Paterson said.

INDUSTRIAL METALS, MINING

Lundin Posts Net Loss on Lower Zinc Prices, Writedown

Lundin Mining Corp., owner of the Neves-Corvo deposit in Portugal, posted a second-quarter net loss of $108.4 million after zinc prices fell and the company wrote down the value of its Aljustrel mine.

OM Group Soars Most Since 2003 as Cobalt Prices Rise

OM Group Inc., the world's largest cobalt producer, rose the most in more than five years in New York trading after second-quarter profit topped analysts' estimates because of higher cobalt prices. OM Group climbed $5.46, or 18 percent, to $35.16 at 4:15 p.m. in New York.

FNX Mining Quarterly Profit Falls 68% on Nickel Prices

FNX Mining Co., the Canadian nickel and copper producer that sells ore to Cia. Vale do Rio Doce, said second-quarter profit dropped 68 percent because of lower nickel prices.

Copper Falls in New York, Erasing Gain, as Oil Pares Advance

Copper fell, erasing earlier gains, as crude-oil prices pared an advance and reduced the appeal of commodities as a hedge against inflation. Copper declined 0.55 cent, or 0.2 percent, to $3.418 a pound in New York.

PRECIOUS METALS, GEMS

Gold Extends Slide to 1 Week as Dollar Rebounds; Silver Falls

Gold fell for a fifth straight session, the longest losing streak since June 2007, as a rebound in the dollar eroded the appeal of the precious metal as an alternative investment. Gold declined $5.10, or 0.6 percent, to $877.90 an ounce in New York. Silver tumbled 24.8 cents, or 1.5 percent, to $16.257 an ounce.

Platinum, Palladium Decline on Speculation Demand to Slide

Platinum and palladium fell on speculation that demand for the metals used in emission-control parts for cars will fall as U.S. auto sales decline. Platinum fell $27.40, or 1.7 percent, to $1,582.60 an ounce. Palladium dropped $6.10, or 1.7 percent, to $348 an ounce.

STEEL, IRON ORE, COAL & URANIUM

Vale Rises After Iron-Ore Price Fuels Record Profit

Cia. Vale do Rio Doce, the world's biggest iron-ore producer, rose in Sao Paulo trading after the company said second-quarter profit increased 22 percent to a record, beating analysts' forecasts. Vale increased 0.1 percent to close at 36.75 reais in Sao Paulo, after earlier climbing as much as 2.2 percent.

SOFT COMMODITIES

Nestle First-Half Net Growth Slows on Coffee, Cocoa

Nestle SA, the world's largest food company, reported the slowest profit growth in four years in its first half after higher cocoa and coffee prices and a weaker dollar cut into earnings.

Sugar Falls, Reversing Gain, as Dollar Rises and Crude Slips

Sugar fell in New York, paring an earlier gain, as the dollar's rise increased the cost of commodities in U.S. markets and crude oil dropped. Sugar declined 0.4 cent, or 2.8 percent, to 13.79 cents a pound.

Cotton Rises on Speculation Price Slump to Spur Mill Purchases

Cotton rose the most in more than seven weeks on speculation that a recent price slump will spur textile mills to purchase more from the U.S., the biggest exporter. Cotton gained 1.82 cents, or 2.6 percent, to 71.38 cents a pound in New York.

Coffee Rises as Producers Delay Sales, Expecting Higher Prices

Coffee rose for the second day in three on speculation producers are delaying sales for higher prices. Coffee gained 2.55 cents, or 1.9 percent, to $1.4045 a pound in New York.

Orange Juice Climbs as U.S. Storm Forecast Tops May Estimate

Orange juice rose for the second straight day after the U.S. projection for the number of Atlantic storms this year topped a May estimate, heightening crop concerns in Florida, the world's second-biggest grower. Orange juice climbed 1.2 cents, or 1.2 percent, to 99.9 cents a pound.

Cocoa Rises in New York on Commodities Gain, Supply Speculation

Cocoa rose in New York as commodities rallied and traders speculated that supplies from Ivory Coast and Indonesia may be curtailed. Cocoa climbed $28, or 1 percent, to $2,813 a metric ton.