Bloomberg News

Corn, Soy Called Higher on Midwest Heat; Wheat May Advance

June 21, 2011

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

June 21 (Bloomberg) -- What follows are opening calls for U.S. grain and oilseed markets.

-- Corn futures are called to open 12 cents to 15 cents a bushel higher on the Chicago Board of Trade as the U.S. forecast that above-average temperatures may move north from the southern Great Plains into the Midwest by the middle of next week, eroding crop prospects, said Gregg Hunt, a broker at Archer Financial Services Inc. in Chicago.

-- Soybean futures may open 10 cents to 13 cents a bushel higher in Chicago on speculation that high Midwest temperatures may damage crops, Hunt said. Soybean-oil futures are expected to open 0.4 cent to 0.5 cent a pound higher, and soybean-meal futures may open up $2 to $3 for 2,000 pounds.

-- Wheat futures may open 8 cents to 12 cents a bushel higher on the CBOT, the Kansas City Board of Trade and the Minneapolis Grain Exchange on speculation that a Canadian government report on June 23 will show flooding and excessive rains in the past month reduced planting, Hunt said.

-- Stocks gained, with U.S. equities rising for a fourth day and European shares rebounding from a three-month low, and the euro strengthened as the Greek government prepared to face a confidence vote that may determine whether it avoids a default. Oil and palladium rose. {NSN LN57890D9L35 <GO>}

-- Federal Reserve Chairman Ben S. Bernanke will probably delay the central bank’s exit from record stimulus, economists said in a survey, giving the flagging economy a boost without resorting to additional asset purchases. {NSN LN4Y6D0UQVI9 <GO>}

-- Crude oil advanced for the second straight day in New York as concern eased that Greece will default on its debt and investors bet that a report will show U.S. crude stockpiles dropped for the third consecutive week. {NSN LN51XG1A1I4H <GO>}

-- Heat will grip the U.S. West and the Atlantic Coast from New Jersey to Florida for the rest of the week before concentrating over Texas by week’s end, said Matt Rogers, the president of Commodity Weather Group LLC. {NSN LN52NE1A1I4H <GO>}

-- Monsoon rain in India will be below normal for the second time in three years, the weather office said, potentially lowering farm output and accelerating inflation which is the highest among Asia’s major economies. {NSN LN54I007SXL4 <GO>}

-- China is set to reap a larger summer-grain harvest this year, the Xinhua News Agency reported, citing the Ministry of Agriculture. {NSN LN4QK76JTSEE <GO>}

-- Pork prices in China may stay at the highest in more than three years as a shortage persists, said Wang Xiaoyue, an analyst at Beijing Orient Agribusiness Consultant Ltd. {NSN LN4SE907SXKX <GO>}

-- China’s palm-oil imports fell 5.8 percent to 443,202 tons in May from a year earlier, according to customs-agency data. {NSN LN4MYF0D9L35 <GO>}

-- An inspection of Chinese wheat reserves purchased in Jiangsu, Anhui, Hubei and Henan provinces last summer found that 30 percent of the samples contained an excessive amount of mycotoxins, Xinhua News Agency said, citing the State Administration of Grain. {NSN LN3P3O6K50Y2 <GO>}

-- Egypt, the world’s biggest wheat buyer, said it will exclude Russian grain from its tenders for now, a sign that the exporter is failing to win back some customers after imposing a 10-month ban on shipments. {NSN LN4T9007SXKX <GO>}

-- Weather will be “satisfactory” for growing crops in Russia’s European regions and “predominantly satisfactory” in Asian regions during the last 10 days of June, according to the country’s forecasting center. {NSN LN4ZZL1A74E9 <GO>}

-- Mironovskiy Hleboproduct SA, a Ukrainian agriculture company, plans to expand land holdings in the next few years to boost grain exports, Chief Executive Officer Yuriy Kosyuk said. {NSN LN4Z4A1A74E9 <GO>}

-- Mriya Agro Holding Plc, a Ukrainian agriculture company, said its winter crops are in good condition and forecast a “rich” harvest. {NSN LN3I5P6KLVRA <GO>}

-- Ukrainian corn exports reached 1.05 million metric tons in May, the second-highest on record, UkrAgroConsult said. {NSN LN4YSK0D9L35 <GO>}

-- Morocco is seeking to buy 187,000 tons of soft wheat in a tender that closes June 30, the country’s grains office said. {NSN LN4WNT6JIJUY <GO>}

-- Japan is seeking to buy 103,252 tons of milling wheat from Canada and Australia in a regular tender on June 23. The volume sought is the smallest since March 24. {NSN LN4QYH0D9L39 <GO>}

-- More of the U.S. corn crop will be used to fuel cars than feed animals for the first time in the year that starts in September, the Agriculture Department projects. {NSN LN41D56KLVRU <GO>}

-- U.S. ethanol subsidies may have increased corn prices by as much as 17 percent this year, said Bruce Babcock, a professor of economics at Iowa State University. {NSN LN4ZXS6TTDS2 <GO>}

-- Agriculture ministers from the Group of 20 nations should tackle food-price volatility by getting rid of biofuel subsidies and boosting efforts to increase food reserves when they meet this week, Oxfam said. {NSN LN3LNS6JIJUT <GO>}

-- Petroleo Brasileiro SA, Brazil’s state-controlled oil company, will build ethanol mills to boost production and guarantee stable supplies, Energy Minister Edison Lobao told the O Globo newspaper. {NSN LN53YT0YHQ0X <GO>}

-- The Korea Corn Processing Industry Association bought 55,000 tons of the grain for food use from Cargill Inc. in a tender, two industry executives who took part in the bidding said. {NSN LN4ULS6KLVRA <GO>}

-- Palm-oil futures in Kuala Lumpur climbed, tracking gains in soybeans, after a U.S. report showed muddy fields delayed sowing of the oilseed used to produce an alternative to cooking oil. {NSN LN4Y4D07SXKX <GO>}

-- SABMiller Plc will pursue Foster’s Group Ltd. after a A$9.5 billion ($10 billion) cash offer was rejected by Australia’s biggest beer company. {NSN LN4ZMY0UQVI9 <GO>}

-- Grains output needs to climb 1.5 billion tons by 2050 to meet demand, said Carl Hausmann, the managing director of global government and corporate affairs at Bunge Ltd. {NSN LN4YFG6JIJVN <GO>}

--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: Steve Stroth at sstroth@bloomberg.net.


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