Bloomberg News

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

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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