May 11
10
International Report 10th May 2011
Less than a year after the worst drought in a generation destroyed one-third of Russia’s wheat crop and sent global food prices surging, more adverse weather is damaging fields from North America to Europe to Asia. Corn planting in the U.S., the world’s largest grower, is advancing at half of last year’s pace because of excess rain, government data show. The Canadian Wheat Board said fields are so muddy that only 3 percent of grain has been sown, compared with 40 percent normally. At the same time, drought left the Kansas wheat crop in the worst shape since 1996, and dry spells are threatening crops in France, Western Australia and China. Japanese stocks gained as better earnings outlook among Japanese companies overshadowed concerns about the Europe’s debt crisis and the weaker euro. Sumitomo Heavy Industries Ltd. (6302), a maker of heavy electric machinery, surged 12 percent after forecasting profit will rise. Denki Kagaku Kogyo K.K., a chemical products maker, soared 8 percent after saying it expects higher profit this fiscal year. Toyota Motor Corp. (7203), the world’s biggest carmaker, led gains in carmakers after the Nikkei newspaper reported its output may return to normal earlier than expected. Nintendo Co., a video- game console maker that gets a third of its revenue from Europe, retreated 1.6 percent. “Earnings are gradually improving day by day, and that’s being reflected in the stock market,” said Seiichiro Iwamoto, who helps oversee about $35 billion in Tokyo at Mizuho Asset Management Co.
