Asia Commodities Day Ahead: Financial Distress May Boost Gold

Sept. 22 (Bloomberg) -- A drop in global equities may be a boon for precious metals and a curse for industrial materials, a Deutsche Bank AG report said. Brazil's biosafety committee approved genetically engineered corn and cotton seeds produced by Monsanto Co. Soybeans, corn and wheat rose. Hexion Specialty Chemicals Inc. agreed to sell epoxy-resin assets in Germany and the U.S. to resolve antitrust concerns raised by its pending acquisition of Huntsman Corp. Gold fell, and copper climbed.

COMMODITIES INVESTMENT

Financial Distress May Help Gold, Hurt Copper, Deutsche Says

A drop in global equities may be a boon for precious metals and a curse for industrial materials while physical demand rather than financial distress will drive agriculture prices, according to a Deutsche Bank AG report.

AGRICULTURAL COMMODITIES

Monsanto, Syngenta Seeds Approved by Brazilian Biosafety Panel

Brazil's biosafety committee approved genetically engineered corn and cotton seeds produced by Monsanto Co. and modified corn made by Syngenta AG, the first endorsements needed before farmers may grow the crops.

Soybeans, Corn Rebound as Bank Bailout Boosts Stocks, Optimism

Soybeans rose the most in four weeks and corn gained, following crude oil and global equities higher, as government plans to resolve the credit crisis revived prospects for improved worldwide demand. Soybeans gained 27.5 cents, or 2.5 percent, to $11.435 a bushel in Chicago. Corn advanced 15 cents, or 2.8 percent, to $5.4225 a bushel.

Wheat Futures Gain on U.S. Government Plan to Shore Up Economy

Wheat rose on speculation investors moved money into commodities from Treasuries after the U.S. government announced a plan aimed at shoring up the economy. Wheat gained 25.25 cents, or 3.6 percent, to $7.18 a bushel in Chicago.

Cattle Rise as Bank Bailout Plan Boosts Markets; Hogs Gain

Cattle rose the most in a week after a U.S. plan to end the credit crisis triggered a rally in global equity markets, reviving optimism that commodity demand will improve. Cattle gained 1.525 cents, or 1.5 percent, to $1.0325 a pound in Chicago. Feeder cattle gained 1.475 cents, or 1.4 percent, to $1.053 a pound. Hogs rose 1 cent, or 1.5 percent, to 66.05 cents a pound.

CHEMICALS

Hexion to Sell Assets to Spolchemie If Huntsman Merger Closes

Hexion Specialty Chemicals Inc. agreed to sell epoxy-resin assets in Germany and the U.S. to Spolchemie to resolve antitrust concerns raised by the pending acquisition of Huntsman Corp.

PRECIOUS METALS, GEMS

Gold Futures Drop as Equities Surge on U.S. Bank, Credit Plans

Gold futures dropped the most in a week as equities worldwide surged on the U.S. government's plan to ease the credit crunch and curb bets against financial stocks. Gold fell $32.30, or 3.6 percent, to $864.70 an ounce in New York.

Platinum Rises in New York on Plan to End Credit-Market Freeze

Platinum rose on speculation that demand will climb after the Bush administration proposed a plan to resolve the credit crisis and American and U.K. regulators limited investor betting on share declines. Platinum gained $9.40, or 0.8 percent, to $1,147 an ounce in New York. Palladium climbed $2.50, or 1 percent, to $236.95 an ounce.

INDUSTRIAL METALS, MINING

Sinosteel Wins Approval to Buy Stake in Australia's Murchison

Sinosteel Corp., China's second-biggest iron-ore trading company, won Australian government approval to buy as much as 49.9 percent of Murchison Metals Ltd.

Copper Gains as Bank Plan Boosts Shares, Eases Growth Concerns

Copper jumped the most in a month as U.S. government plans to resolve the credit crisis sparked rallies in global equity markets and eased economic concerns. Copper rose 11.05 cents, or 3.6 percent, to $3.1765 a pound in New York.

SOFT COMMODITIES

Cotton Rises as Dollar Falls, Confidence Surges on Credit Plan

Cotton rose the most in three months as the dollar weakened and the U.S. government's plan to resolve the credit-market crisis boosted confidence that demand for commodities will improve. Cotton climbed 1.76 cents, or 2.9 percent, to 62.52 cents a pound in New York.

Coffee Rises Most in Two Weeks as Brazilian Real Strengthens

Coffee rose the most in two weeks in New York on speculation a jump in the Brazilian real will boost the price of supplies from the country and reduce exports. Arabica coffee gained 2.65 cents, or 2 percent, to $1.331 a pound in New York. Robusta coffee climbed $37, or 1.8 percent, to $2,129 a metric ton in London.

Sugar Gains as Commodities, Equities Jump on U.S. Debt Plan

Sugar rose in New York as a U.S. government plan to end the worst credit crisis since the 1930s sent global equities higher, boosting commodity prices. Raw sugar gained 0.18 cent, or 1.3 percent, to 13.64 cents a pound in New York.

Cocoa Rises as Commodities, Equities Rally on U.S. Credit Plan

Cocoa rose for a second straight day as agricultural and energy commodities rallied in tandem with soaring global stocks on a Bush administration plan to halt the credit-market meltdown. Cocoa climbed $34, or 1.3 percent, to $2,690 a metric ton in New York.

Orange Juice Falls a Second Straight Week as Storm Threats Ease

Orange juice fell, dropping for a second week, as concern eased that storms may harm citrus groves in Florida, the biggest orange producer after Brazil. Orange juice slipped 0.4 cent, or 0.4 percent, to 89.90 cents a pound in New York.