Bloomberg News

Wheat Called Higher on Dry Weather; Corn Seen Up on Exports

September 29, 2011

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

Sept. 29 (Bloomberg) -- What follows are opening calls for U.S. grain and oilseed markets.

-- Wheat futures may open 2 cents to 4 cents a bushel higher on the Chicago Board of Trade, the Kansas City Board of Trade and the Minneapolis Grain Exchange on concern that dry weather in the southern U.S. Great Plains may delay planting and hamper development of the winter crop, Mike Zuzolo, the president of Global Commodity Analytics & Consulting LLC in Lafayette, Indiana, said in a telephone interview.

-- Corn futures are called to open steady to 2 cents a bushel higher after a U.S. report today indicated rising import demand in China and other Asian countries, Zuzolo said. A decline by the dollar and positive signs for the U.S. economy may bolster consumer and investor sentiment, he said.

-- Soybean futures may open down 3 cents a bushel to 3 cents a bushel higher in Chicago as China’s import demand increases amid prospects for rain to improve soil conditions for planting in South America, Zuzolo said. Soybean-oil futures are expected to open down 0.05 cent to 0.1 cent a pound, and soybean-meal futures may open 50 cents to $1 lower for 2,000 pounds.

-- Stocks rallied after reports showed the U.S. economy grew faster than estimated and jobless claims declined more than forecast, while the euro strengthened and Greek bonds surged as German lawmakers backed expansion of a European bailout fund. {NSN LSADKB6K50YY <GO>}

-- The U.S. economy grew at a 1.3 percent pace in the second quarter, faster than estimated last month and helped by exports and spending on services. {NSN LSAC0M0UQVI9 <GO>}

-- Claims for U.S. unemployment benefits fell more than forecast last week as an atypical calendar alignment made it more difficult for the government to adjust the data for seasonal changes. {NSN LSABX00YHQ0X <GO>}

-- The U.S. economy probably created more jobs in the year ended March than estimated, the Labor Department said. {NSN LSAB3Z0YHQ0X <GO>}

-- Global investors anticipate Europe’s debt crisis leading to an economic slump, a financial meltdown and social unrest in the next year with 72 percent predicting a country abandoning the euro as a shared currency within five years, a Bloomberg survey found. {NSN LS99LS07SXKX <GO>}

-- The euro approached a one-week high against the dollar as Germany’s lower house of parliament approved the expansion of a bailout fund for debt-stricken euro-area nations to help contain the sovereign-debt crisis. {NSN LSA7LV6TTDSB <GO>}

-- Most global investors predict Chinese growth will slow to less than half the pace sustained since the government began dismantling Mao Zedong’s communist economy three decades ago, a Bloomberg poll indicated. {NSN LS9YIL0UQVI9 <GO>}

-- European confidence in the economic outlook dropped more than economists forecast in September to the lowest in almost two years, reflecting growing concern that the worsening debt crisis could push the euro region into a recession. {NSN LSA4LV07SXKX <GO>}

-- U.S. meat and poultry production may drop as much as 5 percent next year, sending beef and pork prices to a record amid climbing feed costs and shrinking herds, according to Rabobank International. {NSN LS96ZT6JTSGN <GO>}

-- U.S. exporters sold 105,000 metric tons of soybeans to Mexico, the U.S. Department of Agriculture said. Of the total, 65,000 tons are for delivery in the year that began Sept. 1, and 40,000 tons are to be delivered in the year starting Sept. 1, 2012. {NSN LSABVV0YHQ0Z <GO>}

-- India’s food inflation accelerated for the first time in four weeks, maintaining pressure on the central bank to raise borrowing costs to tame price gains. {NSN LS9UYK1A1I4H <GO>}

-- China will need a “huge effort” to meet growing corn demand as consumers eat more meat products, the Ministry of Agriculture said. {NSN LS9UAF0D9L35 <GO>}

-- China’s hog herds are “firmly bouncing back,” with the total number of pigs rising for six months and the number of breeding sows gaining for four months, the Ministry of Agriculture. {NSN LS9HVZ6TTDSY <GO>}

-- Syria bought 100,000 tons of soft wheat and will negotiate to buy an additional 100,000 tons from Ukraine. {NSN LSA3IH1A74E9 <GO>}

-- Tunisia agreed to buy 125,000 tons of soft and durum wheat in a tender that closed yesterday. {NSN LSA5HO6JTSEA <GO>}

-- Russian farmers harvested 86.4 million tons of grains and pulses as of yesterday, 46 percent more than a year earlier, the Agriculture Ministry said. {NSN LS9ZF76S9728 <GO>}

-- Razgulay Group, a Russian producer of sugar and grain, plans to increase its winter sowing area by more than 16 percent to 120,000 hectares (296,500 acres) this year. {NSN LSA6Z10UQVI9 <GO>}

-- Palm-oil futures in Kuala Lumpur dropped to the lowest in almost a year on concern that Europe’s sovereign-debt crisis will hurt global growth and reduce demand for commodities. {NSN LSA47K1A1I4H <GO>}

-- The USDA is giving researchers and companies $136 million in grants to produce transportation fuels from trees and grass. {NSN LS91ZL6K50XY <GO>}

-- Denmark’s farming council is planning to set up a fund to prevent the country’s agricultural industry from collapsing as bank credit dries up. {NSN LSA0L80UQVI9 <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.


Toyota's Hydrogen Man
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus