Bloomberg News

Corn Called Higher as U.S. Crop Shrinks; Soybeans May Gain

September 21, 2011

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

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

-- Corn futures are called to open 2 cents to 3 cents a bushel higher on the Chicago Board of Trade on speculation that adverse weather in the past three months damaged U.S. crops, Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, said in a telephone interview today.

-- Soybean futures may open 1 cent to 3 cents a bushel higher on speculation that export demand will increase after cash prices at terminals near New Orleans dropped to a six-month low this week, Roose said. Soybean-oil futures are expected to open up 0.05 cent to 0.15 cent a pound, and soybean-meal futures may open 30 cents to 80 cents higher per 2,000 pounds.

-- Wheat futures may open down 1 cent to up 1 cent a bushel on the CBOT, the Kansas City Board of Trade and the Minneapolis Grain Exchange as traders weigh rising inventories against concern that dry weather will damage harvests in the U.S., Ukraine, Argentina and Australia, Roose said.

-- U.S. stocks rose, following a two- day decline for the Standard & Poor’s 500 Index, amid a larger-than-forecast increase in home sales and speculation the Federal Reserve will signal more stimulus for the economy. {NSN LRVLXB6VDKHU <GO>}

-- The European debt crisis has generated as much as 300 billion euros ($410 billion) in credit risk for European banks, the International Monetary Fund said, calling for capital injections to reassure investors and support lending. {NSN LRVIMN1A1I4H <GO>}

-- Crude oil dropped as European officials said they plan to return to Greece next week to complete a review of the economy, bolstering the dollar and sending equities lower. {NSN LRVK950D9L35 <GO>}

-- Farmers in the 34 OECD countries got record low-income support from subsidies and payments last year after prices for agricultural commodities increased. {NSN LRUXXZ07SXKX <GO>}

-- China said the nation’s duties on American poultry are “in line” with rules by the World Trade Organization after the U.S. filed a complaint with the trade arbiter. {NSN LRV3YY6JTSED <GO>}

-- Norway’s Foreign Minister Jonas Gahr Stoere said he will consider reporting China to the WTO for hindering exports of Norwegian salmon, TV2 said. {NSN LRV30Y07SXKZ <GO>}

-- Corn prices may advance to a record as “nervousness” mounts on global supply and yields in the U.S., Newedge USA LLC said. {NSN LRUXW11A1I4H <GO>}

-- China’s corn imports rose to 244,550 metric tons in August from 172,624 tons in July, customs data showed. {NSN LRV0Q36JTSEI <GO>}

-- Corn at $7 a bushel is “too expensive” for China to buy, said Li Xigui, the deputy department head of grains at the China National Grains & Oils Information Center. {NSN LRUOSH6TTDTB <GO>}

-- European Union wheat production will fall 2.9 percent from a year ago on declining yields in France, the bloc’s biggest producer, the Monitoring Agricultural Resources Unit said. {NSN LRVHD36KLVRL <GO>}

-- China’s palm-oil imports were 594,862 tons in August, according to data released by the customs agency today. Shipments were 511,794 tons in July and 277,655 tons in August 2010. {NSN LRV0S26JTSE8 <GO>}

-- Wheat production in India may climb to a record for a fifth year as favorable monsoon rains boost planting prospects, a unit of state-trader MMTC Ltd. said. {NSN LRVB126S9729 <GO>}

-- Sowing of winter wheat in Ukraine was delayed by dryness that caused average soil humidity to drop to the lowest since 2000 for this month, the national weather center said. {NSN LRVJAP0D9L37 <GO>}

-- Weather conditions for winter crops will be “good and satisfactory” in Russia’s European part and “predominantly good” in West Siberia and Ural federal district, the Federal Hydrometeorological Center said. {NSN LRVDVO6KLVR9 <GO>}

-- Rice prices may drop as India restarts non-basmati exports after lifting a ban, buyers including Indonesia purchase less than expected and global harvests gain to a record. {NSN LRV6DF07SXKX <GO>}

-- Three South Korean feed groups bought a combined 250,000 tons of corn in tenders for arrival in December, according to two industry executives. {NSN LRUUQX0D9L36 <GO>}

-- The Korea Feed Association, South Korea’s biggest grain- buying group, purchased 55,000 tons of corn for arrival in December in a tender, according to two industry executives. {NSN LRV8NV6JTSEX <GO>}

-- Japan bought 49,600 tons of feed wheat and 50,340 tons of feed barley in a tender system introduced to loosen government grain-import controls. {NSN LRV8DS6JTSEF <GO>}

-- Typhoon Roke is moving across central Japan, flooding streets and disrupting travel on a path toward the nuclear power plant in Fukushima hit by the tsunami in March. The storm has killed at least three people. {NSN LRVHLV1A1I4H <GO>}

-- U.S. feedlots probably increased cattle purchases in August as a drought in the Southern Plains scorched pastures, forcing ranchers to sell more animals, analysts said. {NSN LRU5IU6VDKHW <GO>}

-- Argentina’s government declared a state of alert after an outbreak of foot-and-mouth disease in cattle in central San Pedro in neighboring Paraguay. {NSN LRVCRF6JTSEB <GO>}

-- Brazil has temporarily suspended imports of animals and unprocessed meat from Paraguay after a confirmed outbreak of foot-and-mouth disease in the country, the Agriculture Ministry said in a statement on its website yesterday. {NSN LRVA8U6JIJVS <GO>}

-- The global sugar market will be in a surplus in the year beginning Oct. 1 as production expands, said Stefan Uhlenbrock, a senior commodity analyst at F.O. Licht. {NSN LRURSU6S9728 <GO>}

-- SABMiller Plc agreed to buy Foster’s Group Ltd. for a sweetened A$9.9 billion ($10.2 billion) bid, ending a three- month pursuit. {NSN LRVFT21A1I4H <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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