Bloomberg News

Soybeans May Open Lower as Brazil Rain Seen; Wheat May Fall

December 29, 2011

(Updates with news and links after fourth paragraph.)

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

-- Soybean futures may open 7 cents to 10 cents a bushel lower on the Chicago Board of Trade on speculation that rain in southern Brazil and Paraguay will revive yield prospects, Jim Gerlach, the president of A/C Trading Co. in Fowler Indiana, said in a telephone interview. Soybean-oil futures are expected to open 0.3 cent to 0.5 cent a pound lower, and soybean-meal futures may open $2 to $3 lower per 2,000 pounds.

-- Wheat futures may open 2 cents to 4 cents a bushel lower on the CBOT, the Kansas City Board of Trade and the Minneapolis Grain Exchange on speculation that U.S. exports will slow after the grain posted the longest rally since October 2007 and the dollar rose to a 15-month high against the euro, making American supplies more expensive on world markets, Gerlach said.

-- Corn futures are called to open 1 cent a bushel lower to 1 cent higher on speculation that an eight-session rally to five- week highs will reduce demand even as hot, dry weather threatens to cut yields in Argentina, Gerlach said.

--Editors: Steve Stroth, Millie Munshi

To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net


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