Bloomberg News

Soybeans, Corn, Wheat May Decline on Beneficial Crop Weather

June 16, 2011

(Updates with news and links starting in fifth paragraph.)

June 16 (Bloomberg) -- What follows are opening calls for U.S. grain and oilseed markets.

-- Soybean futures may open 12 cents to 14 cents a bushel lower on the Chicago Board of Trade as warm, wet weather aids early U.S. crop development, said Mark Schultz, the chief analyst at Northstar Commodity Investment Co. in Minneapolis. Soybean-oil futures are expected to open 0.6 cent to 0.7 cent a pound lower, and soybean-meal futures may open down $3 to $4 for 2,000 pounds.

-- Corn futures are called to open 5 cents to 8 cents a bushel lower in Chicago on speculation that beneficial weather forecast for the next two weeks in the Midwest will boost crop prospects, Schultz said.

-- Wheat futures may open 3 cents to 6 cents a bushel lower on the CBOT, the Kansas City Board of Trade and the Minneapolis Grain Exchange as dry weather aids U.S. harvesting of winter grain and rain boosts development of spring crops in Russia, Ukraine and other parts of Europe, Schultz said.

-- U.S. stocks rebounded, a day after benchmark gauges fell to three-month lows, as a decrease in jobless claims overshadowed concern about Greece’s debt crisis. European shares slid while Treasuries, the dollar and Swiss franc rose amid demand for safe assets. NSN LMVXWM0YHQ0X <GO>

-- Fewer Americans than forecast filed applications for unemployment benefits last week, indicating the pickup in firings that began in April is abating. NSN LMVVVW1A1I4H <GO>

-- Housing starts in the U.S. increased more than forecast in May, led by a jump in the West as other parts of the country languished. NSN LMVVJ50D9L35 <GO>

-- Cracks are widening in global credit markets as Europe heads closer to a possible sovereign default and the U.S. economy slows, prompting investors to shun all but the safest government debt. NSN LMVM3J1A74E9 <GO>

-- The European Union’s failure to contain the Greek debt crisis is sending fresh shockwaves through currencies, money markets, equities and derivatives. NSN LMVMD80D9L35 <GO>

-- Ireland opened a new front in the drive to restructure debt on the euro area’s periphery, adding to the European Central Bank’s concerns as it tries to head off another wave of financial turmoil. NSN LMVQBB07SXKX <GO>

-- Crude oil fluctuated after fewer Americans filed applications for unemployment benefits and as speculation grew that Greece may default on its debts. NSN LMVYJJ07SXKX <GO>

-- French President Nicolas Sarkozy said world agricultural markets are “the least transparent of all,” and require global governance. NSN LMVK0A6JIJVP <GO>

-- The U.S. Senate will vote today on another bid to end a tax break that supports ethanol production. NSN LMV0JP07SXKX <GO>

-- Heat will grip the U.S. East Coast next week, while forecasters are split on whether parched Texas will cool as wetter weather moves up from the south. NSN LMVWCA1A1I4H <GO>

-- Rain since last month in Germany wasn’t enough to improve the outlook for wheat, the Deutscher Raiffeisenverband e.V. Group said in a statement today, maintaining its production estimate at 22.3 million metric tons. NSN LMVMOW6S972K <GO>

-- Ukrainian grains were in improved condition after weekend rains across most of the country bolstered the harvest outlook, according to the national Hydrometeorology Center. NSN LMVPOS1A1I4H <GO>

-- Japan bought 259,303 tons of milling wheat from the U.S., Canada and Australia in a regular tender today, the Ministry of Agriculture, Forestry and Fisheries said. NSN LMVITF0D9L37 <GO>

-- Weather threats to commodity markets have passed for the rest of 2011 as more neutral conditions are expected, with the exception of possible extended dryness affecting grain in the U.S., said Drew Lerner, the president at World Weather Inc. NSN LMUOLG1A1I4H <GO>

-- Feedlot operators in the U.S. probably bought fewer young cattle in May, signaling tighter beef supplies at the end of the year and higher prices that may trim meatpacker profit. NSN LMV2DO0D9L35<GO>

-- Smithfield Foods Inc., the world’s largest pork processor, had fiscal fourth-quarter profit of 85 cents a share on an adjusted basis. Analysts surveyed by Bloomberg had estimated profit of 82 cents on average. NSN LMVNU96JTSEB <GO>

-- China urged U.S. lawmakers not to damage relations between the two countries by seeking “excuses to start trade protection,” following moves to reintroduce legislation aimed at forcing an appreciation in the yuan. NSN LMVK3L6S9729 <GO>

-- China’s central bank raised three-month bill yields for the first time in 10 weeks and China Development Bank Corp. canceled a bond sale, as investors prepared for a possible interest-rate increase. NSN LMV4LH6S972D <GO>

-- China has completed 75 percent of the harvest of winter wheat in the major growing regions, the Ministry of Agriculture said on the central government’s website today. NSN LMVGHP6JIJUO <GO>

-- China’s wheat demand in the year beginning June 1 may rise 4.3 percent, or 4.7 million tons, from a year ago to 115.2 million tons, as higher corn prices prompt feed mills to switch to wheat as substitute, the China National Grain & Oils Information Center said in e-mailed monthly report today. NSN LMVJJ86JTSEB <GO>

-- China’s inbound shipments of soybeans in June may be 5.57 million tons, while soybean oil and palm oil may be 181,100 tons and 245,300 tons, respectively, the Ministry of Commerce said on its website, citing estimates based on importers’ reports. NSN LMVHMY6JIJUR <GO>

-- China sold 140,146 tons of rice, or 12 percent of the total 1.13 million tons offered at auction from the country’s temporary state reserves today, auction site Cereal.com.cn said in a statement today. NSN LMVEB96JIJUO <GO>

-- The pace of gains in China’s pork prices is accelerating, the official Xinhua News Agency said citing its nation-wide monitoring. Average prices today gained 2 percent from a week earlier, Xinhua said. NSN LMVUU36S972F <GO>

-- Palm-oil futures declined the most in almost three months in Kuala Lumpur on speculation that China’s central bank will step up measures to control inflation, and as soybeans and corn dropped on prospects of favorable weather boosting harvests. NSN LMVRXB0D9L35 <GO>

-- Tractor sales in India, the world’s second-largest wheat and rice producer, may reach a record for a second year as rising farm output and all-time high commodity prices drive demand, according to an industry group. NSN LMVFRV1A1I4H <GO>

-- A reduction in the amount of coal and grain being shipped in the Atlantic Ocean halted the rally in commodity-transportation costs, Barclays Capital said. NSN LMVDCQ07SXKX <GO>

-- Glencore International Plc Chief Executive Officer Ivan Glasenberg has had $1.1 billion wiped off the value of his stake in the company in three days as the stock slumps on missed earnings estimates and lower commodity prices. NSN LMVW836JTSEE <GO>

--Editors: Millie Munshi, Patrick McKiernan

To contact the reporter 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: Steve Stroth at sstroth@bloomberg.net.


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