Asia Commodities Day Ahead: Barrick Says Bullion Will Climb

Sept. 25 (Bloomberg) -- Barrick Gold Corp. said bullion prices will climb, driven by fears about how the U.S. government's bailout plan will affect the nation's currency. Gold, silver and platinum gained. Morgan Stanley will seek U.S. regulatory approval to retain its metals-dealing and raw- materials businesses after becoming a commercial bank. Corn rose, wheat fell and soybeans were unchanged. PPG Industries Inc. will shut factories in North America and Europe.

PRECIOUS METALS, GEMS

Barrick Sees `Large-Scale' Gold Buying on Credit Bailout

Barrick Gold Corp. Chairman Peter Munk said bullion prices will go higher, driven by large-scale buying by ``major, major'' holders of dollars who fear the effects of the U.S. government's bailout plan on the currency.

Barrick to Use Cash in Buying Smaller, Inexpensive Gold Miners

Barrick Gold Corp., the world's largest gold producer, said it will use cash rather than stock to make acquisitions after the credit crisis reduced the value of smaller gold companies, making them more affordable targets.

Gold, Silver Gain on Concern U.S. Bank Plan Will Weaken Dollar

Gold rose on speculation a proposed $700 billion plan to stabilize U.S. financial markets would weaken the dollar and boost demand for the precious metal as an alternative investment. Gold gained $3.80, or 0.4 percent, to $895 an ounce in New York. Silver climbed 27 cents, or 2.1 percent, to $13.44 an ounce.

Platinum, Palladium Rise as Dollar Declines, Commodities Gain

Platinum and palladium gained as the dollar fell against the euro, boosting demand for the precious metals as an alternative investment. Platinum rose $13, or 1.1 percent, to $1,225 an ounce in New York. Palladium climbed $2.10, or 0.8 percent, to $252.85 an ounce.

COMMODITIES INVESTMENT

Morgan Stanley Will Seek Further Fed Exemption in Commodities

Morgan Stanley, the second-largest bank in commodities trading, will seek U.S. regulatory approval to retain its oil tankers, metals dealing and raw-materials businesses after becoming a commercial bank this week.

STEEL, IRON ORE, COAL & URANIUM

Votorantim, Acesco to Build $1.5 Billion Steel Mill

Votorantim Group's steelmaking unit plans to build a $1.5 billion mill in Colombia with Acerias de Colombia SA.

INDUSTRIAL METALS, MINING

Copper Drops in N.Y. as Falling Home Sales Signal Slower Demand

Copper fell for a second day on speculation that the depressed U.S. housing market will continue to stifle economic growth and reduce metals demand. Copper dropped 4.55 cents, or 1.4 percent, to $3.1065 a pound in New York.

CHEMICALS

PPG Shuts Plants as Storms, Lower Demand Trim Profit

PPG Industries Inc., the world's second-largest paintmaker, will shut factories in North America and Europe as U.S. hurricanes, a strike at Boeing Co. and lower auto-parts demand reduced third-quarter earnings.

AGRICULTURAL COMMODITIES

Pilgrim's Pride Trading Halted After Plunging a Record 38%

Pilgrim's Pride Corp., the biggest U.S. chicken producer, plunged 38 percent, the most ever, before trading was halted on the New York Stock Exchange.

Corn Rises as Buffett Buys Stake in Goldman; Soybeans Unchanged

Corn rose on speculation that Warren Buffett's purchase of a $5 billion stake in Goldman Sachs Group Inc. will revive confidence in the U.S. banking system, preserving economic growth and demand for food. Corn climbed 2.75 cents, or 0.5 percent, to $5.63 a bushel in Chicago. Soybeans were unchanged at $11.87 a bushel.

Wheat Falls on U.S. Planting Progress, Global Production Gains

Wheat futures fell for the first time in four sessions as planting in the U.S. progresses and global production is expected to increase to a record. Wheat dropped 20.25 cents, or 2.7 percent, to $7.3025 a bushel in Chicago.

Cattle Futures Rise on Inflation Concerns; Hog Prices Drop

Cattle rose for the third time in four sessions on speculation that the U.S.'s $700 billion plan to end the credit crisis will increase the inflation rate, boosting demand for commodities as a hedge. Cattle gained 0.75 cent, or 0.7 percent, to $1.042 a pound in Chicago. Feeder cattle climbed 1.5 cents, or 1.4 percent, to $1.0745 a pound. Hogs fell 0.075 cent, or 0.1 percent, to 66.225 cents a pound.

SOFT COMMODITIES

Cocoa Climbs as Weakening Dollar Lifts Demand for Commodities

Cocoa rose to a three-week high as the dollar's decline against the euro lifted demand for commodities as alternative assets. Cocoa rose $55, or 2 percent, to $2,757 a metric ton in New York.

Cotton Falls as Mills May Shun Purchases Amid Financial Turmoil

Cotton fell for a second day on concern that overseas mills are postponing new purchases as U.S credit-market turbulence may curb demand for the fiber used in furniture and clothing. Cotton declined 0.95 cents, or 1.5 percent, to 61.35 cents a pound in New York.

Sugar Rises on Prospects of Tighter Supplies, More Ethanol Use

Sugar rose for a second day this week on speculation that supplies of the sweetener will tighten as mills in Brazil turn more cane into ethanol. Raw sugar gained 0.16 cent, or 1.1 percent, to 14.1 cents a pound in New York.

Coffee Rises on Speculation Demand Will Rise as Supply Dwindles

Coffee rose on speculation that colder Northern Hemisphere weather will boost hot-drink sales as production in Brazil and Colombia slows. Arabica coffee gained 0.75 cent, or 0.6 percent, to $1.3565 a pound in New York. Robusta climbed $10, or 0.5 percent, to $2,160 a metric ton in London.

Orange Juice Falls on Receding Storm Threats to Florida Groves

Orange juice fell for a fourth time in five sessions on speculation that storms brewing over the western Atlantic Ocean may not harm citrus groves in Florida. Orange juice dropped 0.15 cent or 0.2 percent, to 92.6 cents a pound in New York.