Asia Commodities Day Ahead: Strike May Affect Potash Shipments

Sept. 1 (Bloomberg) -- Potash Corp. of Saskatchewan Inc. may not be able to meet delivery commitments if a strike continues, JPMorgan Chase & Co. said. Wheat and corn declined. Gold fell, and platinum and palladium gained. Agnico-Eagle Mines Ltd. Chief Executive Officer Sean Boyd said gold prices may rise to about $1,250 an ounce as the metal's appeal as a store of value increases. Orange juice rose on speculation more storms will threaten groves in Florida.

AGRICULTURAL COMMODITIES

Potash Strike May Force Shipment Cuts, JPMorgan Analyst Says

Potash Corp. of Saskatchewan Inc., the world's largest producer of the crop nutrient, may not be able to meet its delivery commitments if a strike at three Canadian mines continues, said an analyst at JPMorgan Chase & Co.

Wheat, Corn Futures Fall as Global Production Expected to Rise

Wheat fell, marking the biggest weekly drop in five months, and corn declined on expectations that world production of both grains will be higher than previously forecast. Wheat futures for December delivery dropped 9.75 cents, or 1.2 percent, to $8.0125 a bushel in Chicago. Corn lost 2.75 cents, or 0.5 percent, to $5.85 a bushel. Soybeans settled unchanged at $13.24 a bushel.

Hogs Fall as Slaughter Rates May Outpace Demand; Cattle Gain

Hogs fell to a four-month low on speculation that pork supplies will outpace consumption and the dollar's rally will erode the appeal of shipments from the U.S. Hogs dropped 0.1 cent, or 0.2 percent, to 68.425 cents a pound in Chicago. Cattle rose 0.225 cent, or 0.2 percent, to $1.0405 a pound. Feeder cattle climbed 0.525 cent, or 0.5 percent, to $1.1095 a pound.

PRECIOUS METALS, GEMS

Agnico-Eagle Mines Plans to Double Credit Line to $600 Million

Agnico-Eagle Mines Ltd., owner of the LaRonde gold mine in Quebec, plans to double a revolving loan facility to $600 million after the cost of digging four new mines rose, Chief Executive Officer Sean Boyd said.


Agnico's Boyd Expects Gold to Rise to $1,250 on Credit Crisis

Agnico-Eagle Mines Ltd. Chief Executive Officer Sean Boyd said gold prices may rise to about $1,250 an ounce as the metal gains increasing allure as a buffer against tough economic conditions and a worsening credit crisis.

Gold Has Biggest Monthly Drop Since April 2004 on Dollar Rally

Gold fell, capping the biggest monthly decline since April 2004, as the dollar climbed against the euro, eroding the appeal of the metal as an alternative investment. Gold dropped $2, or 0.2 percent, to $835.20 an ounce on the Comex division of the New York Mercantile Exchange. Silver was little changed at $13.707 an ounce.

Platinum Gains as Storm Pushes Up Crude Oil; Palladium Rises

Platinum and palladium gained in New York as a rise in the price of crude oil boosted demand for the metals as a hedge against inflation. Platinum rose $5.60, or 0.4 percent, to $1,489.80 an ounce in New York. Palladium jumped $10.70, or 3.6 percent, to $306.80 an ounce.

INDUSTRIAL METALS, MINING

ArcelorMittal, U.S. Steelworkers Reach Four-Year Pact

ArcelorMittal, the world's biggest steelmaker, and the union representing steelworkers at the company's U.S. plants reached a tentative four-year agreement after four months of talks.

Copper Falls for Second Straight Month as Inventories Climb

Copper fell, capping the second straight monthly drop, as rising inventories signal slowing demand for the metal used in wire and pipe. Copper dropped 1.35 cents, or 0.4 percent, to $3.387 a pound in New York.

SOFT COMMODITIES

Sugar Caps Biggest Weekly Drop in a Month as Demand May Slow

Sugar dropped, capping the biggest weekly decline in more than a month, on speculation that a slowing U.S. economy will reduce oil prices and trim the value of alternative fuel made from cane. Sugar declined 0.47 cent, or 3.6 percent, to 12.76 cents a pound in New York.

Coffee Falls in New York as Brazil Exports Rise, Demand Slows

Coffee fell, wiping out earlier gains, as shipments accelerated from Brazil, the largest producer, and demand from roasters slowed. Arabica fell 2.05 cents, or 1.4 percent, to $1.4575 a pound in New York. Robusta gained $25, or 1.1 percent, to $2,336 a metric ton in London.

Cocoa Rises on Speculation Ivory Coast Rains Spreading Fungus

Cocoa rose on speculation wet weather is spreading a crop- damaging fungus in Ivory Coast and Ghana, the world's biggest producers. Cocoa gained $24, or 0.8 percent, to $2,884 a metric ton in New York.

Orange Juice Rises on Bets More Storms to Threaten Florida Crop

Orange juice gained on speculation more storms will threaten groves in Florida, the world's second-biggest grower. Orange juice climbed 0.75 cent, or 0.7 percent, to $1.1215 a pound in New York.

Cotton Rises on Concern Storms May Hurt Fiber Quality in Delta

Cotton rose, capping the second straight weekly gain, on speculation Tropical Storms Gustav and Hanna may diminish the quality of fiber from farms in the Mississippi Delta region already drenched by Tropical Storm Fay. Cotton gained 0.42 cent, or 0.6 percent, to 69.78 cents a pound in New York.