China keeps hold on commodities reins

(MarketWatch) -- Oil and metals mining shares traded on a mixed note in the Asian markets Thursday, as analysts stressed that China remained a key force that will ultimately decide the fate of demand for most major global commodities.
And while economic growth in China appears to be improving, the outlook remains uncertain.

On Thursday, government data showed that the nation's economy grew a slightly better-than-expected 6.1% in the first quarter from a year earlier, after expanding 6.8% in the fourth quarter.

Overall, "China continues to walk a very thin tightrope" and growth remains "below the optimal level to avoid major civil unrest," said Kevin Kerr, editor of Global Commodities Alert.
But that also means that "demand for key commodities such as energy and agriculture, industrial metals and soft commodities will continue to be brisk in China as they try to stave off a major collapse by continuing to use every means possible to stimulate the economy and create infrastructure projects," he said.
"China will clearly be the driving force in commodities during this cycle and perhaps for decades to come," he said.

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Commodity markets mostly hold their own vs stocks

(Reuters) - Commodities were mostly firm on Friday despite the risk aversion sweeping through stock and financial markets, with metals, energy and agricultural products trading largely on their own fundamentals.

Platinum fell sharply and gold prices wallowed on concerns about the U.S. subprime mortgage crisis and other credit market problems. But copper rose on the strength of second-quarter U.S. economic growth that was stronger than expected.


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Canadian Dollar Drops From 30-Year High as Prices of Commodities Decline

(Bloomberg) -- The Canadian dollar fell from a 30-
year high as the U.S. counterpart gained and prices of the
nation's commodity exports declined.

Commodities account for about half of Canada's exports. The
U.S. dollar rose against 12 of 16 major currencies.


Read more at Bloomberg Currencies News

Japanese Exporter Stocks May Drop, Led by Sony, on U.S. Housing Concern

(Bloomberg) -- Japanese exporter stocks may drop,
extending the Nikkei 225 Stock Average's longest streak of
declines since early March. Sony Corp. may pace losses amid
signs the U.S. housing market is worsening, curbing demand.

Commodities-related shares such as Mitsubishi Corp. may
fall after prices of oil, copper, gold and other raw materials
slumped.


Read more at Bloomberg Stocks News

Pan-Africa Commodities proposes Africa-wide exchange

(Reuters) - Pan-African Commodities Platform, a Botswana-based company, plans to open Africa's first regional physical and derivatives exchange for commodities trading by mid-2008, its chief executive told Reuters on Thursday.

The exchange plans to establish contracts for metals, agricultural products, energy and commodity price indexes for each sector, Anthony Adendorff said.


Read more at Reuters Africa