Bloomberg News

Grains, Soy May Open Lower on Rising Supplies, Weak Demand

By Jeff Wilson and Whitney McFerron
December 12, 2011

(Updates with news and links after fourth paragraph.)

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

-- Wheat futures may open 4 cents to 7 cents a bushel lower on the Chicago Board of Trade, the Kansas City Board of Trade and the Minneapolis Grain Exchange as rising global production reduces demand for U.S. supplies, Chad Henderson, a market analyst for Prime Agricultural Consultants Inc. in Brookfield, Wisconsin, said in a telephone interview.

-- Corn futures are called to open 5 cents to 7 cents a bushel lower in Chicago on speculation that Europe’s debt crisis will expand as rising world supplies slow demand for U.S. grain, Henderson said.

-- Soybean futures may open 5 cents to 7 cents a bushel lower on the CBOT on speculation that a stronger dollar and falling prices for crude oil and global equities will reduce consumer and speculative demand for agricultural commodities, Henderson said. Soybean-oil futures are expected to open 0.5 cent to 0.6 cent a pound lower, and soybean-meal futures may open steady to 50 cents lower per 2,000 pounds.

--Editors: Millie Munshi, Patrick McKiernan

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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