Bloomberg News

Corn, Soy Called Lower on Economic Concern; Wheat May Rise

September 14, 2011

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

Sept. 14 (Bloomberg) -- What follows are opening calls for U.S. grain and oilseed markets.

-- Corn futures are called to open 3 cents to 5 cents a bushel lower on the Chicago Board of Trade on concern that a sagging global economy will reduce demand for food, livestock feed and fuel made from the grain, Jim Gerlach, the president of A/C Trading Inc. in Fowler, Indiana, said in a telephone interview.

-- Soybean futures may open 3 cents to 5 cents a bushel lower in Chicago as worldwide consumption ebbs, Gerlach said. Prices may rebound later on speculation that cold weather tomorrow may damage immature U.S. crops across the northern Midwest, he said. Soybean-oil futures are expected to open steady to down 0.1 cent a pound, and soybean-meal futures may open little changed.

-- Wheat futures may open steady to 3 cents a bushel higher on the CBOT on speculation that an emerging La Nina weather pattern will reduce global production next year, Gerlach said. Prices on the Kansas City Board of Trade and the Minneapolis Grain Exchange may fall 2 cents to 5 cents as rain in the southern U.S. Great Plains in the next week might boost soil moisture for planting winter crops, he said.

-- Stocks rose for a second day in Europe, reversing earlier losses, on speculation China may still offer support for the region’s most-indebted nations. U.S. index futures gained, while Treasuries fell and oil pared declines. {NSN LRIJXL6S972U <GO>}

-- The European Central Bank said it will lend dollars to two euro-area banks tomorrow, a sign they are finding it difficult to borrow the U.S. currency in markets. {NSN LRID9U0YHQ0Z <GO>}

-- Chinese Premier Wen Jiabao, facing calls to widen support for indebted European countries, signaled that developed nations should cut deficits and open markets rather than rely on China to bail out the world economy. {NSN LRIBF86TTDSN <GO>}

-- Retail sales in the U.S. unexpectedly stagnated in August as a lack of jobs restrained shoppers, highlighting the risk the economy will stall. {NSN LRIJNH07SXKX <GO>}

-- U.S. wholesale prices in were little changed in August as energy and automobile costs decreased. {NSN LRIJLI1A1I4H <GO>}

-- International Monetary Fund Deputy Managing Director Zhu Min said emerging markets should continue to tighten monetary policy to fight inflationary pressures. {NSN LRIDZ66KLVR6 <GO>}

-- European banks are losing deposits as savers and money funds spooked by the region’s debt crisis search for havens, a trend that may worsen economic and financial conditions. {NSN LRI7JM1A1I4H <GO>}

-- Divisions on the Federal Open Market Committee about the costs and benefits of more monetary easing may limit Chairman Ben S. Bernanke to incremental policy moves this month that do little to bring down unemployment. {NSN LRHRIN0UQVI9 <GO>}

-- Emerging-market stocks fell, with a benchmark index sliding toward the lowest level in more than 13 months, as commodities dropped on concern Europe’s debt crisis will sap demand and a report will show further signs the U.S. economy is slowing. {NSN LRIFJX6JTSED <GO>}

-- Commodities declined, led by crude oil and copper, on concerns that demand for raw materials may ease as the euro-zone debt crisis remains unresolved and the Asian Development Bank cut its growth forecast for the region. {NSN LRIGGF6TTDTC <GO>}

-- Inflows into commodity-based exchange-traded products fell to $7.8 billion in the year through July, from $11 billion a year earlier, Barclays Capital said today in an e-mailed report. {NSN LRIGT86JIJWC <GO>}

-- U.S. exporters sold 106,000 metric tons of soybeans to China for delivery in the year that began Sept. 1, the U.S. Department of Agriculture said today. {NSN LRIK550YHQ0X <GO>}

-- A La Nina event, which brought floods to Australia’s northeast earlier this year, may return in the fourth quarter, according to the Bureau of Meteorology. {NSN LRI7QX0D9L35 <GO>}

-- Egypt, the world’s biggest wheat importer, probably will pay less to buy food in the year through next June on shipments of cheaper Russian grain, the United Nations’ Food and Agriculture Organization said. {NSN LRIEKE1A74E9 <GO>}

-- Ukrainian grain exports have climbed 9 percent since the current marketing year began July 1, UkrAgroConsult said. {NSN LRIIQJ0YHQ0X <GO>}

-- Ukraine reaped 34.7 million tons of grain as of Sept. 1, up 21 percent from a year earlier, the country’s statistics office said on its website. {NSN LRIHNR6KLVRC <GO>}

-- A wheat cargo from Australia destined for China’s state reserves cleared customs in Zhejiang’s Zhoushan port last month, a government agency said today. {NSN LRI5GH0UQVI9 <GO>}

-- China’s corn crop may reach a record, exceeding 180 million tons, the China Daily reports, citing Xu Xiaoqing, director of the Department for Rural Economic Development at the State Council’s Development Research Center. {NSN LRHI936KLVR9 <GO>}

-- China pork prices rose 0.7% in the week ending Sept. 11 from the previous week, the Ministry of Commerce said in a statement on its website today. {NSN LRI26Q6TTDS4 <GO>}

-- Indian exporters signed contracts to sell 500,000 tons of non-basmati rice to Africa and Bangladesh after the government last week scrapped curbs on shipment by private companies. {NSN LRIJ6O6S972X <GO>}

-- Monsoon-sown crops in India, the world’s second-biggest cotton and rice producer, have escaped “significant” damage from flooding, Agriculture Secretary P.K. Basu said in New Delhi today. {NSN LRI1RD6S972G <GO>}

-- India’s monsoon-sown food grain output may total 123.9 million tons in the year that began on July 1, Farm Minister Sharad Pawar said. {NSN LRIIYQ6S972M <GO>}

-- India’s soybean output may reach 12.57 million tons in the 2011-2012 season, compared with 12.66 million tons in the previous period, Agriculture Minister Sharad Pawar told reporters in New Delhi today. {NSN LRIK9L6TTDSH <GO>}

-- France’s grain industry should add 5 million tons of storage capacity, 10 percent of the current total, to accommodate larger harvests and replace silos shut in the past decade, crops office FranceAgriMer said. {NSN LRI5VB0UQVI9 <GO>}

-- English wheat production will total 13.636 million tons this year, down 1.5 percent from the five-year average, then National Farmers Union said in a report e-mailed today and dated Sept. 8. Wheat area rose about 3 percent to 1.822 million hectares, the NFU said. {NSN LRII4G6JIJUZ <GO>}

-- Palm oil futures traded in Kuala Lumpur gained as the lowest price in more than a week lured some buyers looking for cheaper alternatives to rival soybean oil. {NSN LRIFR76S972D <GO>}

-- The sugar market will be in surplus by 5.3 million tons in the 2011-12 season, about 50 percent below May’s 10.3 million- ton estimate, according to C. Czarnikow Sugar Futures Ltd. {NSN LRI8PJ0YHQ0X <GO>}

--Editors: Daniel Enoch, Millie Munshi.

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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