BS: Corn, Soybeans, Wheat May Rise as Demand Rebounds (Update1)
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By Jeff Wilson and Tony C. Dreibus
May 18 (Bloomberg) -- What follows are opening calls for U.S. grain and oilseed markets.
-- Corn futures are called to open 4 cents to 5 cents a bushel higher on the Chicago Board of Trade as the euro’s rebound and higher fuel prices may trigger buying, said Greg Grow, the director of agribusiness at Archer Financial Services in Chicago.
-- Soybean futures may open 7 cents to 9 cents a bushel higher on speculation that demand for U.S. supplies will increase after prices slumped to a six-week low yesterday, Grow said. Soybean- meal futures may open $1.50 to $2.50 higher per 2,000 pounds, and soybean oil is expected to open 0.3 cent to 0.4 cent a pound higher, he said.
-- Wheat futures may open 2 cents to 3 cents a bushel higher on the CBOT, the Kansas City Board of Trade and the Minneapolis Grain Exchange on speculation that U.S. crops have been hurt by recent heavy rain, Grow said.
-- U.S. equities rose, continuing yesterday’s late rebound, after housing starts and earnings at Wal-Mart Stores Inc. topped forecasts and concern over Europe’s debt crisis eased. {NXTW NSN L2MB4I1A74E9 }
-- Europe’s banks are facing déjà vu. Less than two years after the collapse of Lehman Brothers Holdings Inc., fresh tremors in the debt markets are threatening to shake the financial system. {NXTW NSN L2M4P30D9L36 }
-- European finance ministers said Greece’s debt crisis won’t unleash a continent-wide austerity drive with the potential to tip the economy back into a recession and further undercut the euro. {NXTW NSN L2LUK40D9L35 }
-- China sold 799,500 metric tons of corn from state reserves in auctions today, the National Grain & Oil Trade Center said. The corn was sold for an average price of 1,751 yuan a ton. {NXTW NSN L2LUI86TZ01T }
-- China imported rice made in Taiwan for the first time, Xinhua News Agency reported, citing the working committee of the Cross- Straits Conference. About 300 tons were shipped. {NXTW NSN L2LW826SETC1 }
-- A plague of rats in the northern Chinese province of Inner Mongolia is threatening more than 9 million hectares of grassland, Xinhua reported, citing the local government. {NXTW NSN L2L9L86N9EDD }
-- Corn demand in South Korea may climb as much as 6 percent after a surge in sugar prices earlier this year spurred a shift to the grain as a sweetener. {NXTW NSN L2LX711A74E9 }
-- Japan is seeking 147,000 tons of wheat for flour milling at a regular tender on May 20, the government said today. The volume sought for July shipment was the largest amount since April 22. {NXTW NSN L2LU031A74E9 }
-- Corn prices in South Africa rose for the first time in four sessions, tracking prices in the U.S., which competes for African exports. {NXTW NSN L2M2WO1A1I4H }
-- Rising imports may increase palm-oil inventories at Chinese ports, curbing domestic cooking-oil prices, the China National Grain & Oils Information Center said. Port stockpiles were estimated at 600,000 metric tons, with 281,500 tons of imports to arrive in May. {NXTW NSN L2LEX86SETC1 }
-- Palm oil on the Malaysia Derivatives Exchange rallied from the lowest level in three months as crude-oil futures gained. {NXTW NSN L2M3UN0D9L35 }
-- Gold fell to a one-week low as equities and the euro rallied, curbing demand for the metal as a haven. {NXTW NSN L2M8IG0UQVI9 }
-- Crude oil rose from a five-month low on forecasts that demand is picking up in the U.S. {NXTW NSN L2M1PY0UQVI9 }
--Editors: Patrick McKiernan, Steve Stroth
To contact the reporters on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net; Tony Dreibus in Chicago at tdreibus@bloomberg.net.
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.
