Asia Commodities Day Ahead: Nitrogen Trims Fertilizer Profits

Sept. 29 (Bloomberg) -- Terra Industries Inc. plummeted to the lowest in almost a year after Citigroup Inc. said prices for nitrogen-based crop nutrients may extend declines. Corn, soybeans and wheat dropped. U.S. hog farmers cut their breeding herds 2.6 percent in the three months ended Aug. 31. Gold and silver rose, while platinum fell. Celanese Corp. said the shutdown of Texas factories for Hurricane Ike reduced third-quarter profit by as much as $15 million.

AGRICULTURAL COMMODITIES

Terra, CF Drop After Citigroup Says Nitrogen Prices May Fall

Terra Industries Inc. plummeted the most in almost nine years after an analyst at Citigroup Inc. said prices for nitrogen-based crop nutrients may extend declines. Terra dropped $7.48, or 20 percent, to $30.42 in New York.

U.S. Hog Farmers Reduce Breeding Herd on Corn Cost, USDA Says

U.S. hog farmers cut their breeding herds 2.6 percent in the three months ended Aug. 31 as record feed costs led to losses in nine of the past 11 months. It was the second straight quarter of breeding-herd reductions.

Hogs Fall on Signs of Reduced U.S. Pork Demand; Cattle Rise

Hog futures fell to a one-week low on speculation that pork demand will slow as the U.S. economy falters. Hogs dropped 0.075 cent, or 0.1 percent, to 66.05 cents a pound in Chicago. Cattle rose 0.175 cent, or 0.2 percent, to $1.028 a pound. Feeder cattle declined 0.8 cent, or 0.8 percent, to $1.05575 a pound.

Corn, Soybeans Decline on Rescue-Plan Delay, Sagging Economy

Corn and soybeans tumbled the most in a week after the U.S. government's $700 billion financial rescue plan stalled and the economy slowed, signaling reduced demand for grain and oilseeds. Corn fell 15.25 cents, or 2.7 percent, to $5.43 a bushel in Chicago. Soybeans dropped 19 cents, or 1.6 percent, to $11.64 a bushel.

Wheat Falls as Credit Crisis Spurs Commodity, Stock Sell-Off

Wheat fell, marking the fifth-straight weekly decline, on speculation that the deepening U.S. financial crisis will spur investors to shift money to Treasuries from commodity and equity markets. Wheat dropped 20.25 cents, or 2.8 percent, to $7.16 a bushel in Chicago.

Smithfield, Workers Reach Agreement, Averting Strike in Iowa

Smithfield Foods Inc.'s Farmland Foods unit reached an agreement with a United Food and Commercial Workers local, averting a strike at a pork plant in Denison, Iowa, the union said.

CHEMICALS

Celanese Says Hurricane Shutdowns Cost as Much as $15 Million

Celanese Corp., the world's largest maker of acetyls used in textiles and plastics, said the shutdown of Texas factories for Hurricane Ike reduced third-quarter profit by as much as $15 million.

PRECIOUS METALS, GEMS

Gold, Silver Rally in N.Y. as Talks to Ease Credit Crunch Stall

Gold rose, extending gains to a second straight week, as talks on the $700 billion U.S. plan to ease the credit crunch stalled. Gold gained $6.50, or 0.7 percent, to $888.50 an ounce in New York. Silver climbed 22.8 cents, or 1.7 percent, to $13.503 an ounce.

Platinum, Palladium Fall on Signs of Slumping U.S. Economy

Platinum and palladium tumbled, capping the fourth-straight weekly slide, as the sagging U.S. economy signaled declining demand for the metals used in car and truck parts. Platinum futures fell $68.10, or 5.7 percent, to $1,123.10 an ounce in New York. Palladium dropped $16.95, or 7 percent, to $225.50 an ounce.

INDUSTRIAL METALS, MINING

Norilsk Says Units Spent $1.7 Billion to Buy Shares

OAO GMK Norilsk Nickel said three of its units bought as many as 16.5 million shares, tightening billionaire Vladimir Potanin's grip on Russia's biggest mining company in a battle for control with United Co. Rusal.

Sinosteel Says Murchison Purchase to Depend on Market Prices

Sinosteel Corp., China's second-biggest iron-ore trading company, said its decision to buy a stake in Australia's Murchison Metals Ltd. depends on ``market conditions,'' according to president Huang Tianwen.

Copper Drops to One-Week Low in New York as Bailout Plan Stalls

Copper fell to a one-week low after the U.S. government's $700 billion plan to bail out the finance industry faltered and regulators seized lender Washington Mutual Inc., raising concerns that economic growth will stall. Copper dropped 6 cents, or 1.9 percent, to $3.0745 a pound in New York.

SOFT COMMODITIES

Cotton Falls on Concern Demand Will Slide as Bailout Stalls

Cotton fell, capping the fourth-straight weekly slide, as U.S. lawmakers stalled a $700 billion financial-rescue plan, adding to concern that credit-market turmoil may depress demand for the fiber. Cotton dropped 1.28 cents, or 2.1 percent, to 60.38 cents a pound in New York.

Coffee Falls Most in Week as U.S. Financial Rescue Plan Stalls

Coffee fell the most in more than a week in New York amid concern the global economy will keep slowing if the U.S. Congress doesn't pass the proposed $700 billion financial bailout plan. Arabica coffee declined 3.45 cents, or 2.5 percent, to $1.3415 a pound. Robusta coffee fell $42, or 1.9 percent, to $2,137 a metric ton.

Orange Juice Falls to Weekly Low Amid Concern Demand Will Drop

Orange juice fell to the lowest this week amid speculation that a stalemate in the U.S. Congress over a $700 billion bank- rescue plan will weaken the economy, further reducing demand for the beverage. Orange juice dropped 0.8 cent, or 0.9 percent, to 90.5 cents a pound in New York.

Sugar Slips in N.Y. After Surge to 6-Month High Damped Demand

Sugar slid in New York for the first time in three days on speculation that demand will slow after the price reached a six- month high. Raw sugar dropped 0.07 cent, or 0.5 percent, to 14.48 cents a pound.

Cocoa Rises, Gaining a Second Week, on Risk of Crop Disease

Cocoa rose in New York, gaining a second straight week, amid concern that rain is increasing the chances black pod disease will spread in the Ivory Coast, the world's biggest grower of the beans. Cocoa gained $3, or 0.1 percent, to $2,743 a metric ton in New York.