Bloomberg News

Corn May Rise on Smaller U.S. Crop; Soybeans, Wheat May Decline

September 12, 2011

Sept. 12 (Bloomberg) -- What follows are opening calls for U.S. grain and oilseed markets.

-- Corn futures are called to open 5 cents to 10 cents a bushel higher on the Chicago Board of Trade on speculation that the U.S. Department of Agriculture will estimate in October that harvested acreage declined, sending production below a year earlier, Roy Huckabay, an executive vice president for the Chicago-based Linn Group, said in a telephone interview

-- Soybean futures may open 5 cents to 10 cents a bushel lower after the government unexpectedly raised its estimates of U.S. and world crops, Huckabay said. Soybean-meal futures may open $1 to $3 lower per 2,000 pounds, and soybean oil is expected to open 0.1 cent to 0.15 cent a pound lower.

-- Wheat futures may open 5 cents to 10 cents a bushel lower on the CBOT, the Kansas City Board of Trade and the Minneapolis Grain Exchange after the USDA said global stockpiles will climb to a two-year high before the 2012 harvests.

-- The corn crop in the U.S., the world’s largest grower and exporter, will be 3.2 percent smaller than forecast a month ago after unusually hot, dry weather in the Midwest, the government said. {NSN LRETE63T6SR1 <GO>}

-- The U.S. soybean crop will be 7.3 percent smaller than last year after hot, dry weather in July and August reduced yields, the government said. {NSN LRETE63T6SR2 <GO>}

-- World wheat stockpiles will be 3 percent larger than forecast in August, more than analysts expected, as prospects improved for crops in Europe and the former Soviet Union, the USDA said. {NSN LRETE63T6SQZ <GO>}

-- U.S. exporters sold 114,300 metric tons of corn to unknown destinations for delivery in the year that began Sept. 1, the USDA said. {NSN LREUS06VDKHZ <GO>}

-- Prime Minister George Papandreou approved new measures to help plug a yawning budget gap as resistance builds at home and in Europe to extending more aid to the European Union’s most- indebted nation. {NSN LREOJY07SXKX <GO>}

-- U.S. stocks erased losses as a $3.7 billion acquisition by Broadcom Corp. lifted chipmakers and valuations on the Standard & Poor’s 500 Index approached a 30-month low, tempering concern on Europe’s debt crisis. {NSN LREXMW6TTDT8 <GO>}

-- China’s record imports and a rebound in lending signaled strength in demand that offers a bright spot in a global economy contending with Europe’s debt crisis and weakening U.S. job gains. {NSN LRE65M0YHQ0X <GO>}

-- Crude Oil headed for the longest slump in a month in New York as investors bet that Europe’s debt crisis will limit economic growth. Production resumed in the Gulf of Mexico as the threat of storms eased. {NSN LRESHE6K50Z8 <GO>}

-- Funds increased bullish bets on raw materials for a fourth straight week, the longest series of gains this year, on speculation that economic-stimulus programs will lift demand for metals, grains and energy. {NSN LREN5P6TTDSI <GO>}

-- This year’s surge in Russian wheat exports, big enough to feed Japan for more than two years, may fail to stop a rally as global demand overwhelms supply curbed by droughts from the U.S. to Australia. {NSN LREQIZ6JIJUS <GO>}

-- Soybean production in India may increase more than 5 percent next year as adequate rainfall spurs planting, according to the nation’s largest edible-oil importer. {NSN LREOX66JTSED <GO>}

-- Corn in Argentina is trading at close to a 50 percent discount relative to U.S. benchmark prices as farmers struggle to sell inventories after meeting government export quotas. {NSN LRETWI0YHQ0X <GO>}

-- Brazil’s government may retake control of almost 1,700 kilometers (1,060 miles) of railways as other rail lines undergo renovation, O Estado de S. Paulo reported. {NSN LRD2ZR0YHQ0X <GO>}

-- Ukraine exported 283,600 metric tons of grain in this month’s first nine days, ProAgro said, citing preliminary information from local ports. {NSN LREOI50YHQ0Z <GO>}

-- The cheapest restaurants in America are luring activist investors who are betting companies from Ruby Tuesday Inc. to Cracker Barrel Old Country Store Inc. can make more money selling their own real estate than food. {NSN LRCYZ51A74E9 <GO>}

-- Elstar Oils SA, a Polish producer of edible oils and biofuels, fell the most in a month after its majority owner agreed to sell the stake to Archer Daniels Midland Co., ending a battle for control over the company. {NSN LREPPR6JTSE8 <GO>}

--Editors: Patrick McKiernan, Steve Stroth

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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