Bloomberg News

Soy Called to Open Higher on Smaller Crop; Grains May Rise

March 23, 2012

What follows are opening calls for U.S. grain and oilseed markets.

-- Soybean futures may open 10 cents to 15 cents a bushel higher on the Chicago Board of Trade on speculation that a smaller crop in South America and reduced palm-oil output in Malaysia will increase demand for supplies from the U.S., Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview. Soybean-oil futures are expected to open 0.7 cent to 0.8 cent a pound higher, and soybean-meal futures may open $1 to $2 higher per 2,000 pounds.

-- Wheat futures may open 2 cents to 4 cents a bushel higher on the CBOT, the Kansas City Board of Trade and the Minneapolis Grain Exchange as dry weather will reduce production in Spain, Italy and France and may move north and west in April, increasing demand for U.S. wheat supplies, Schultz said.

-- Corn futures are called to open up 4 cents to 5 cents a bushel in Chicago on speculation that China, the biggest grower after the U.S., will boost imports to cool inflation after domestic grain prices surged, Schultz said.

WHAT TO WATCH: (ALL TIMES NEW YORK)
1:45 p.m. Bernanke Gives Opening Remarks at Fed Conference
2 p.m.    USDA Daily Cattle & Hog Slaughter
3 p.m.    Cattle on Feed-Feedlots, Marketing and Placements

TOP COMMODITY STORIES:
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-Return to Seasonal Weather May Chill U.S. Northeast Next Week
-China’s Appetite for U.S. Farm Goods Target of USDA Mission
-Russia’s Winter Grains Loss ‘No More’ Than 6%, Center Says
-Cargill Says Gavilon May Likely Be Acquired by ‘New Player’
-Viterra Sale May Raise Competition Concerns, Premier Wall Says
-Yara Corruption Probe Deepens on ‘Unacceptable’ Swiss Fees
-Morocco Tendering for 180,000 Tons of Wheat, Document Shows
-Tunisia Has Favorable Prospects for Winter Grain, UN’s FAO Says
-Southern England Drought ‘Inevitable’ After Dry March, NFU Says
-Palm Oil Jumps to 10-Month High on Malaysia Production Concerns
-Copper Bear Trend Extends as Manufacturing Shrinks: Commodities
-Commodity Brokers Get Shelter From Europe’s Shift to Exchanges

TOP ECONOMIC AND GOVERNMENT NEWS:
-European Stocks Fall as U.S. Treasuries Gain; Commodities Climb
-China Banks Said to Underestimate Local Government Lending Risk
-Bernanke Sees Need for Higher Household Spending to Fuel Growth
-Fed’s Bullard Sees Price Threat From Delaying Tighter Policy
-China’s Stocks Drop, Capping Biggest Weekly Drop in 3 Months
-Bo Downfall Escalates China’s Chongqing-Guangdong Model Divide
-AgriBank Profit Unexpectedly Declines on China Lending Curbs
-French Sentiment Rises as Sarkozy Lifts Growth Forecast
-Obama Nominee to World Bank Said to Be Dartmouth’s Jim Yong Kim



MARKETS (AS OF 9:36 A.M. NEW YORK TIME):
                              Last      %Chg
Corn                         $6.495      0.8
CBOT Wheat                   $6.49       0.4
Soybeans                     $13.63      1.0
Soybean Oil                  $0.5467     1.3
Soybean Meal                 $372.40     0.6
WTI Crude Oil                $105.45     0.1
N.Y. Gasoline                $3.3504     0.3
U.S. Dollar Index            79.452     -0.4
S&P 500                      1,391.52   -0.1

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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