Bloomberg News

Grains, Soy Called Lower on Beneficial Weather, Lower Demand

February 22, 2012

(Updates with news and links after fourth paragraph.)

Feb. 22 (Bloomberg) -- What follows are opening calls for U.S. grain and oilseed markets.

-- Wheat futures may open 2 cents to 4 cents a bushel lower on the Chicago Board of Trade, the Kansas City Board of Trade and the Minneapolis Grain Exchange on speculation that rising global supplies will damp demand for U.S. exports, Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, said in a telephone interview. Precipitation in the next two weeks may boost prospects for U.S. yields, he said.

-- Corn futures are called to open 2 cents to 3 cents a bushel lower in Chicago as rain in South America aids developing crops, while two U.S. Midwest snowstorms in the next week increase soil-moisture reserves before the planting season that begins in April, Roose said.

-- Soybean futures may open 1 cent to 3 cents a bushel lower on the CBOT on speculation that rain will boost crops in Brazil and Argentina, reducing demand for U.S. supplies, Roose said. Soybean-oil futures are expected to open 0.15 cent to 0.2 cent a pound lower, and soybean-meal futures may open down 50 cents to $1 per 2,000 pounds.

--Editors: Millie Munshi, Thomas Galatola

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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