Indian Oil Corp (IOC) has issued a tender to buy high sulphur fuel oil for mid-October delivery, traders said on Wednesday. The tender invited offers for 25,000 tonnes of 3.5-per cent sulphur 180-centistoke (CST) fuel oil for October 10-12 delivery into Mumbai and Goa. The closing date is September 22 and validity is for two days, traders said. IOC, meanwhile has yet to award another fuel oil buy tender, which closed on Tuesday, but for September 30-October 2 delivery into Bombay and Kandla, traders said.

MTBE Malaysia restarts plant

MTBE Malaysia has restarted its 300,000 tonne per year methyl tertiary butyl ether (MTBE)/propylene plant, a company source said on Wednesday. The source said the plant was not running at full capacity,but did not disclose the actual operating rate. The plant is expected to operate at full capacity in early-October, but production will be geared towards maximum propylene production in order to replace inventory drawn down during theplant's prolonged shutdown. The source said gearing the plant towards maximum propylene production would still result in an MTBE production rate of about 1,000 tonne per day. The plant had been shut down in May following technical problems and a scheduled maintenance was brought forward by one week as a result of this closure.

Bangchak postpones MTBE tender

Thailand's Bangchak Petroleum Plc plans to discuss offers submitted in response to a methyl tertiary butyl ether (MTBE) buy tender with sellers next week, a company source said on Wednesday. In the tender, which closed September 10 and carried aone-day validity, Bangchak sought 1,500 tonnes for delivery to Bangkok on a cost-and-freight (C-and-F) basis. The tender had not been cancelled, said the source, but the lowest offer received, $225 per tonne was above Bangchak's target price. "We will talk with sellers next week about the price", the source said. He added that Bangchak would like to see offers reduced to below $220 per tonne C-and-FBangkok.

NWE fuel oil barges steady

NWE oil product barges stood near flat in early Wednesday action, with fuel oil trading at levels comparable to the previous day. Prompt high sulphur fuel oil barges traded twice at $65.50 a tonne and once at $66 out of Rotterdam, dealers said. Gas oil activity began quietly, although near term sentiment in the barge market appeared slightly bearish following the recent run up in prices. Offers for prompt heating oil out of Rotterdam running refinery were seen unchanged at $1.00 over the Screen, with bids sitting well below that mark, one trader said. At 0850 GMT, IPE October gas oil futures were up 50 cents at$122.50 a tonne.

Tokyo naphtha up

Tokyo naphtha was notionally firmer on Wednesday, buoyed by moderate overnight crude gains, while Hyundai Oil Refinery Co was likely to issue its low sulphur waxy residue (LSWR) tender as early as later this week, traders said. The South Korean oil firm, which issues tenders to buy 200,000 barrels of cracked LSWR tobe delivered to Daesan several times a month, was expected to float its next tender later this week or early next week, traders said. The delivery dates were likely to be mid-October, they added. Activity remained extremely quiet on the naphtha market,with many market players away for an industry meeting in Singapore. "I haven't heard any deals concluded so far this week," one naphtha trader said. Trading is expected to pick up on Thursday with the three-day industry function ending on Wednesday.

Euro cash grain prices flat

European cash grain prices are flat to lower Tuesday, weighed down by oversupply, said traders. In its latest report, Strategie Grains pegged European Union grain output this year at 208.4 million metric tons, down from its August forecast due to expectations of a smaller corn crop, but still 4.6 million up on the year. The company painted a bearish picture for EU wheat and barley prices in the season ahead, citing export competition and soaring stock levels for its forecasts.For corn, however, the company said at this early stage supply and demand in the EU look to be balanced. French wheat and barley prices continue to edge lower. The approaching corn harvest is forcing producers to clear space and rainy weather is prompting co-operatives to sell their grain, often stored outside due to limited storage capacity, pressuring prices.

Maize import tender for Spain

The European Union added 50,000 tonnes to the amount available under a tender for the preferential import of non-EU maize to Spain, EU officials said. The EU's grain panel took the decision at its weekly meeting last Thursday, they said. The extra tonnage should be open for bidding this Thursday following publication of the regulation in the EU Official Journal on Wednesday, they said. Last Thursday the European Union sold 142,000 tonnes of non-EU maize to Spain with tariff cuts of up to 78.70 Ecus per tonne from an initial tranche of 200,000 tonnes. Of the total 112,000 tonnes came from the United States and30,000 tonnes from Argentina.

Liffe coffee seen consolidating

Liffe coffee looks like consolidating after its fall from the peak of seven days ago and may even test resistance, technical analysts said on Wednesday. Traders called it to open $10 higher. Maeve Purcell, technical analyst at Sucden, noted that coffee recovered on Tuesday to close near its highs after touching a low of $1,596 a tonne. "The market closed above the 40-day MA (Moving Average) and is now in a position to consolidate and may even test resistance at $1,633, followed by $1,733," Purcell said. New York posted broad gains overnight in a market consolidation after four straight sessions of losses. Some traders said prices might have been underpinned by expectations of a draw down in US consumer coffee stocks during August. The Green Coffee Association of New York is due to release its monthly stock report on Wednesday.

Indian gold tracks weak global trend

Indian gold reversed its previous gains and opened with losseson Wednesday, dealers said. "A drop in the world trend and dull demand dragged gold prices lower," said dealer Mahavir Shah. Standard gold 24 carat opened Rs 30 lower at Rs 4,220 per 10 grams. Gold was up Rs 25 on Tuesday. In Europe, gold opened weaker at $289.40/$289.90 per ounce compared to the previous close of $289.70/$290.20. Gold biscuits (116.64 grams) lost Rs 300 to Rs 49,900 per piece. Silver (.999) however held steady at Rs 7,500 per kg amid dull demand and limited trades. Silver was priced lower at $4.93/$4.96 in early European trades, against $4.95/$4.98 the previous New York close. "Precious metal prices may drop further due to the weakness in the overseas market," Shah said.

Copper, aluminium make pre-market gains

Copper and aluminium are technically stronger after pushing higher in late Tuesday London Metal Exchange (LME) business, traders said on Wednesday.Copper moved through the 10-day moving average early on Wednesday, and was set to test $1,690 a tonne and then $1,700 in thering sessions. Aluminium was holding its ground and a bounce to $1,380/85 was possible, they added.

CBOT wheat ends up

Wheat futures closed moderately higher Tuesday at the Chicago Board of Trade with some help from the White House and from weather worries, traders and analysts said. The wheat market got a slight lift Tuesday from US president Bill Clinton, who spoke for 15 minutes to the National Farmers Union at midday about the need to help US agricultural producers cope with low commodity prices. Some of the strength in wheat came ahead of the speech on hopes that Clinton would announce further wheat credits to struggling countries - perhaps Bangladesh or Russia. Though the president didn't announce any new credits, traders saw it as bullish that he gave the farm sector so much attention.

European cotton unchanged

European raw cotton prices are unchanged to higher Tuesday tracking overnight gains on the New York Cotton Exchange, said traders. The New York December cotton contractsettled up 0.91 at 74 .85 cents a pound Monday, while the March contract closed higher a 74.36 cents a pound, up 1.14 cents a pound. European traders report an absence of new business activity in the European market and a mood of pessimism regarding the outlook for prices, said Cotlook, the Liverpool-based information company. All recent inquiries have merely been requirements for gaps in stocks and rarely for shipments beyond the end of the year, said Cotlook. Cotlook reported a little price testing with the West African and central Asian descriptions with Spanish cotton being offered below that of the central Asian cotton in Belgium. Cotlook report the following price changes Tuesday. The prices shown are in cents per pound.

NYCE cotton ends down

Cotton futures on the New York Cotton Exchange settled lower Tuesday on speculator selling, prompted by expectations of weak demand for delivery against the October contract, which expires October 8, traders said. "There was some spec selling today(Tuesday)," said Ray Streker, a trader for LFG Inc, a commission house in New York. "But the volume was not big." He estimated Tuesday's volume at about 7,000 lots. "There was talk about the possibility that the upcoming October delivery period won't show any strong takers," said Rich Mollitor, senior broker at Fox Investments, a commission house in Chicago. "And (that) should keep the market well contained for the next few days or weeks." Still, other fundamentals for the cotton market remain bullish in the short term - the next two to three months - said Mollitor. The potential for a reduced 1998/99 US crop - by some estimates at a 10-year low - is providing the market with some support, he said.