BS: Corn, Soybeans, Wheat Called Higher as Supplies Drop
By Jeff Wilson and Whitney McFerron
(Updates with news and links starting in fifth paragraph.)
Oct. 11 (Bloomberg) -- What follows are opening calls for U.S. grain and oilseed markets.
-- Corn futures are called to open 40 cents to 45 cents a bushel higher on the Chicago Board of Trade after the government said U.S. production will be less than forecast a month ago, said Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago.
-- Soybean futures may open 40 cents to 50 cents a bushel higher in Chicago after the U.S. government reduced its crop forecast and dry weather threatens yields in South America, Grow said. Soybean-meal futures may open $15 to $17 higher per 2,000 pounds, and soybean oil is expected to open up 0.75 cent to 0.85 cent a pound.
-- Wheat futures may open 6 cents to 8 cents a bushel higher on the CBOT, the Kansas City Board of Trade and the Minneapolis Grain Exchange as surging corn prices increase demand for wheat in feed rations and dry weather may curtail acreage in the southern Great Plains in the U.S., Grow said.
-- Ukraine’s economy ministry wants to cap exports of barley at 200,000 metric tons. The ministry said wheat shipments should be limited to 500,000 tons with corn at 2 million tons. {NXTW NSN LA4NHX6JTSED }
-- U.S. stocks climbed, building on last week’s rally in the Standard & Poor’s 500 Index, amid growing speculation that the Federal Reserve will act to protect the economic recovery. {NXTW NSN LA4OOZ1A74E9 }
-- Leaders of the world economy failed to narrow differences over currencies as they turned to the International Monetary Fund to calm frictions that are already sparking protectionism. {NXTW NSN LA4F6Y0D9L35 }
-- China is moving to add more emerging-market currencies to its foreign-exchange reserves, a strategy that central banks around the world are following to diversify their $8.7 trillion in holdings. {NXTW NSN LA48MU0YHQ0X }
-- China’s foreign-exchange reserves, the world’s largest, may have climbed to a record $2.5 trillion, adding fuel to complaints that the nation’s currency intervention is undermining the global economic recovery. {NXTW NSN LA3XND0D9L36}
-- The dollar’s biggest quarterly decline in eight years may be setting the stage for a rally, if some of Wall Street’s top strategists are to be believed. {NXTW NSN LA3W2707SXKX }
-- Meat prices are poised to extend a 14 percent rally this year that drove U.S. retail costs to the highest levels since the 1980s as surging corn futures prevent livestock producers from expanding their herds. {NXTW NSN LA4E8A1A74E9 }
-- China will allow the two largest state-owned grain- and oilseed- trading companies to import soybean oil from Argentina, easing restrictions imposed in April, two traders said. {NXTW NSN LA4HFN1A1I4I }
-- Corn, soybean and cotton futures in China surged by exchange limits today, tracking gains in U.S. markets. {NXTW NSN LA48C11A1I4H }
-- Russia, which banned grain exports this year following the country’s worst drought in 50 years, will return to global markets as a leading exporter in the “foreseeable future,” Prime Minister Vladimir Putin said. {NXTW NSN LA2UJE1A74E9 }
-- Two executives with Cargill Inc.’s Argentina unit, the country’s biggest exporter, have been charged by a court with tax evasion and face as many as nine years in prison, the government’s tax agency said. {NXTW NSN LA03L20UQVI9 }
-- Ukraine harvested 7.5 million tons of corn as of Oct. 8, UkrAgroConsult said. Yields are rising, and the harvest probably will total 11 million tons, the Kiev-based researcher. {NXTW NSN LA4I5207SXKX }
-- Plans to cut irrigation by as much as 37 percent in Australia’s Murray-Darling Basin, home to almost half of the nation’s farms, will raise fresh-food prices, the country’s main farming organization said. {NXTW NSN LA043N0UQVI9 }
-- Confidence in U.S. government crop estimates has been “shaken to the core” after the country’s Department of Agriculture cut its outlook for corn production, economist Dennis Gartman said. {NXTW NSN LA4J6U1A1I4H }
-- Palm-oil futures in Malaysia surged to the highest level in more than 26 months, tracking gains in soybeans. {NXTW NSN LA3XER6JIJUP }
-- Rice may peak at $18 per 100 pounds in Chicago on concerns that U.S. supplies will decline, according to Milo Hamilton, president of Firstgrain.com. {NXTW NSN LA406C6JIJUO }
-- Indonesia, the Philippines and Bangladesh will dominate the rice-import market in the fourth quarter, said Tom Slayton, the former publisher of the Rice Trader. {NXTW NSN LA3UPF6JIJUO }
-- Sugar rose to the highest price in more than seven months on concern that adverse weather may limit supplies from Brazil, the world’s largest producer. {NXTW NSN LA4J8M0UQVI9 }
-- India stopped registering cotton-export contracts after Cargill Inc., Louis Dreyfus Commodities and other trading companies filled the quota within 10 days after bookings opened amid a global shortage. {NXTW NSN LA46LO07SXKX }
--Editors: Patrick McKiernan, Daniel Enoch
To contact the reporters on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net; Whitney McFerron in Chicago at wmcferron1@bloomberg.net.
To contact the editor responsible for this story: Patrick McKiernan at pmckiernan@bloomberg.net
