BLBG: Soybeans, Corn, Wheat Called Lower as Dollar Rallies
Oct. 27 (Bloomberg) -- What follows are opening calls for U.S. grain and oilseed markets.
-- Soybean futures may open 12 cents to 15 cents a bushel lower on the Chicago Board of Trade as the dollar’s rally reduces the allure of commodity investments, said Jeff Thompson a grain broker at ABN Amro Clearing LLC in Chicago. Soybean-meal futures may open $3 to $5 lower per 2,000 pounds, and soybean oil is expected to open down 0.6 cent to 0.7 cent a pound.
-- Corn futures are called 4 cents to 6 cents a bushel lower as the dollar gained for the fourth time in five sessions against a basket of major currencies, Thompson said.
-- Wheat futures may open steady to 2 cents a bushel lower on the CBOT, the Kansas City Board of Trade and the Minneapolis Grain Exchange as the dollar’s rebound erodes the appeal of U.S. exports, Thompson said.
-- The dollar rose against all of its major counterparts as stocks and Treasuries fell on speculation signs of growth will allow the Federal Reserve to buy less debt than some traders estimated under quantitative easing. {NXTW NSN LAY7OF1A1I4H }
-- U.S. companies are hoarding almost $1 trillion of cash, an amount Moody’s Investors Service says shows borrowers are still concerned the economy may tip back into recession. {NXTW NSN LAY1V307SXKX }
-- Gold declined for a second day in New York as a stronger dollar curbed demand for the metal as an alternative investment. Palladium fell after reaching a nine-year high. {NXTW NSN LAY7ND0YHQ0X }
-- Orders for U.S. non-military capital equipment excluding airplanes dropped in September, indicating gains in business investment will cool. {NXTW NSN LAY93O1A1I4H }
-- Soybean-oil imports by India, the second-biggest user of cooking oils, will slump at least 19 percent next year as a record local harvest of soybeans brings cheaper domestic supplies, GG Patel & Nikhil Research Co. said. {NXTW NSN LAXMWQ07SXKX }
-- China will “severely” punish those who hoard commodities and collude to manipulate prices, the State Council said in a statement on the government website today, citing a meeting chaired by Premier Wen Jiabao. {NXTW NSN LAXX3F6K50XS }
-- China may sell more vegetable oil from state stockpiles if price gains threaten market stability, Cnyouzhi.com said, citing Lu Jingbo, director of macro-control and adjustment at the State Administration of Grain. {NXTW NSN LAXYXS0UQVI9 }
-- Commodities in China snapped a rally, led by rice, zinc, soybean oil and rubber, on growing concerns that security regulators may tighten trading rules to curb excessive speculation. {NXTW NSN LAXSBP0D9L35 }
-- Soybean-crushing capacity in China may increase 11 million metric tons to more than 95 million tons in the 2010-2011 marketing year from a year earlier, industry watcher Grain.gov.cn said. {NXTW NSN LAXRKA0YHQ0X }
-- China bought 250,000 tons of soybean oil from South America this week after profits from importing the commodity rose, industry information website Grain.gov.cn said. {NXTW NSN LAXPQO6JIJUO }
-- Ukraine exported more than 5 million tons of grain since July 1, Prime Minister Mykola Azarov said. {NXTW NSN LAXTEV6JTSED }
-- Russian farmers will need at least 130 billion rubles ($4.3 billion) of loans for spring grain planting next year, Interfax reported, citing Agriculture Minister Yelena Skrynnik. {NXTW NSN LAXVJO1A1I4H}
-- Russia’s government won’t sell stockpiled grain before March, Interfax reported, citing Agriculture Minister Yelena Skrynnik. {NXTW NSN LAXTGG6S972C }
-- Sugar and coffee exports from Brazil, the largest producer of the commodities, will slow as workers in the country’s biggest port protest to seek a wage increase, a union leader said. {NXTW NSN LAY7WJ6S9728 }
-- The La Nina in the Pacific Ocean remained a moderate-to- strong event and was likely to persist into at least early 2011, Australia’s Bureau of Meteorology said. {NXTW NSN LAXKUJ6TTDS0 }
-- Palm oil dropped for a second day on the Malaysia Derivatives Exchange as a rebound in the dollar dented the appeal of commodities and on speculation China may take further steps to curb inflation. {NXTW NSN LAY33M0UQVI9 }
-- Yarn output in China, the world’s largest textile maker, soared 13.9 percent in September from a year earlier, fueling demand for cotton during the peak consumption season, the China Cotton Association said. {NXTW NSN LAXKU70D9L35 }
-- Rice prices are likely to extend a rally as flooding that’s killed at least 162 people across Southeast Asia ravages crops in Thailand and Vietnam, the world’s two biggest exporters. {NXTW NSN LAXQC16JIJV7 }
-- Japan’s rice imports may jump 11-fold from the 770,000 tons a year bought now should it remove tariffs on overseas supplies under a free-trade agreement with exporters proposed by Prime Minister Naoto Kan. {NXTW NSN LAXMLV0D9L35 }
-- Thai-rice prices, the benchmark for Asia, declined 1.4 percent as import demand subsided, according to the Thai Rice Exporters Association. {NXTW NSN LAXWTN6JIJUP }
-- The Philippines, the world’s biggest rice importer, will buy no more than 2 million tons of the grain for next year’s supply even after Typhoon Megi damaged crops, Agriculture Secretary Proceso Alcala said. {NXTW NSN LAXKJE6JIJUV }
-- Archer Daniels Midland Co. may sell its 49 percent stake in a Brazilian ethanol plant for about $360 million, Valor `Economico reported, citing unnamed people familiar with the deal. {NXTW NSN LAY68B0UQVI9 }
--Editors: Millie Munshi, Patrick McKiernan
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
