GRAINS-US corn, wheat rise from 3-month low, soy firm
SINGAPORE, April 19 (Reuters) - Chicago corn rose 1.3 percent and wheat gained 0.9 percent as the markets took a breather after sliding to three-month lows in the last session, but improved supply prospects on crop-friendly U.S. weather may keep a lid on prices.
"Influence from the outside markets cannot be underestimated as it continues to be jittery around the prospects out of Europe," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia.
Argentina says OKs 3 mln tonnes of corn exports
BUENOS AIRES, April 18 (Reuters) - Argentina on Wednesday authorized 3 million tonnes of 2011/12 corn for export, the Agriculture Ministry said in a statement.
Argentina's government controls corn exports through a system designed to guarantee affordable local food supplies and help tame high inflation.
German farmers cut 2012 wheat crop forecast
HAMBURG, April 18 (Reuters) - The German Farm Cooperatives Association said on Wednesday it has cut its forecast for the 2012 wheat harvest to 21.5 million tonnes from 24.2 million tonnes estimated in March as damage from the cold winter and dryness is becoming more apparent.
This will be down on the weather-reduced 22.7 million tonnes of wheat Germany harvested in 2011, cooperatives said.
Rain delays quick pace of US corn seedings
Rain of 0.50 to 1.00 inch forecast for Wednesday through Saturday in the U.S. Midwest will slow corn seedings, though plantings were already well ahead of the average pace.
"It will slow down plantings, not a perfect forecast but certainly not a disaster," said John Dee, meteorologist for Global Weather Monitoring. Rains will begin in the north on Wednesday, spread to the western Midwest by Thursday, and move into the eastern Midwest on Friday and Saturday.
Spain feed industry sees flat wheat, barley crops
MADRID, April 18 (Reuters) - Spain's animal feed industry expects the grain-importing country's soft wheat and barley crops to be broadly similar to last year's, based on preliminary data in the light of recent rainfall.
Farmers say April showers may have come in time to relieve the impact of a long drought in the northern grainbelt but that crop damage may be permanent in many parched southern regions, where the crop cycle is more advanced.
Mexico drought loss worth more than $1.3 bln-attache
April 18 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Mexico:
"Mexico is being battered by its worst drought in seven decades, which has devastated agricultural production in most of the country. According to the National Water Commission, the drought is expected to continue until the rainy season begins in summer of 2012. The prolonged drought has affected 70 percent of the country and decimated agriculture in Mexican states of Coahuila, Aguascalientes, San Luis Potosi, Sonora, Tamaulipas, Zacatecas, and Durango (among others). The financial losses of the drought have surpassed 16 billion pesos (1.3 billion USD) including losses of 9 billion pesos (710 million USD) for corn and 6 billion pesos (280 million USD) for beans."
Corn Climbs Most in Two Weeks on Speculation Over Demand (Source: Bloomberg)
Corn rose the most in more than two weeks on speculation demand for U.S. supplies may increase after futures slumped to a four-month low yesterday. Corn for delivery in July advanced as much as 2.8 percent to $6.1075 a bushel on the Chicago Board of Trade, the biggest intraday gain for the most-active contract since March 30, and traded at $6.0625 by 2:34 p.m. Paris time. Futures fell to $5.9175 yesterday, the lowest level since Dec. 19. The Korea Corn Processing Industry Association issued a tender to buy as much as 55,000 metric tons of corn for food. Private buyers in China may seek permits to buy more corn after the price drop, according to Shanghai JC Intelligence Co. “Corn has fallen a lot recently, and the $6 must look pretty attractive to physical buyers as well as some investors,” Park Jong Beom, a senior trader at Tong Yang Securities Inc., said today by phone from Seoul. “The import tenders by Korea today are the evidence and today’s price gain can be explained in that sense.”
Corn Market Recap for 4/19/2012 (Source: CME)
July Corn finished up 18 at 612, 2 1/2 off the high and 16 3/4 up from the low. December Corn closed up 13 at 541 3/4. This was 12 3/4 up from the low and 2 3/4 off the high. May corn closed sharply higher on the session as rumors of China buying old crop corn was enough to spark aggressive buying from fund traders. Talk of the oversold condition of the market and some light weather concerns helped to support the market early in the session. The weekly export sales report showed 300,400 metric tonnes for the current marketing year and cancellations of 2,400 for the next marketing year for a total of 298,000. This was well below trade expectations. Cumulative corn sales stand at 81.8% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 78.4%. Sales of 387,000 metric tonnes are needed each week to reach the USDA forecast. Dryness concerns for the northeastern China growing region plus talk that temperatures could dip into the 30's into early next week into Illinois are weather factors which helped to provide underlying support. After some additional rain into early next week, the Midwest looks to turn warmer and drier and planting weather looks near ideal into next weekend. Argentina cut its production estimate for the 2011/12 season to just 20.3 million tonnes as compared with 21.1 million as their previous estimate and compared with 21.5 million as the last USDA forecast. July Rice finished down 0.145 at 15.595, 0.055 off the high and equal to the low.
U.S. corn rises from 3-month low (Source: CME)
Chicago corn rose 1.3 percent and wheat gained 0.9 percent as the markets took a breather after sliding to three-month lows in the last session, but improved supply prospects on crop-friendly U.S. weather may keep a lid on prices. "Influence from the outside markets cannot be underestimated as it continues to be jittery around the prospects out of Europe," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia.
Rain delays quick pace of US corn seedings (Source: CME)
Rain of 0.50 to 1.00 inch forecast for Wednesday through Saturday in the U.S. Midwest will slow corn seedings, though plantings were already well ahead of the average pace. "It will slow down plantings, not a perfect forecast but certainly not a disaster," said John Dee, meteorologist for Global Weather Monitoring. Rains will begin in the north on Wednesday, spread to the western Midwest by Thursday, and move into the eastern Midwest on Friday and Saturday.
Recap: Wheat Futures (Source: CME)
Wheat benefited from short-covering and spillover from corn futures to post double-digit gains in most contracts at all three exchanges. Outside of corrective price action, there was little reason for wheat traders to return as buyers today. More rains are in the forecast for dry areas of Europe this weekend, with crop watchers talking about the potential for yields to return to more normal levels.
Wheat Market Recap Report (Source: CME)
July Wheat finished up 14 1/4 at 630, 2 1/2 off the high and 14 up from the low. December Wheat closed up 12 3/4 at 667 1/4. This was 11 up from the low and 2 3/4 off the high. July wheat closed sharply higher on the session and is already up as much as 23 1/4 cents from yesterday's lows. The surge higher in the other grains plus talk that funds hold a near record net short position in wheat helped to spark aggressive short-covering and sharply higher trade into the mid-session. A little colder forecast for the Midwest into the weekend may have helped provide some support as well but it still does not look cold enough far enough south in the central and eastern corn belt to cause damage. Net weekly export sales for wheat, came in at 365,900 metric tonnes for the current marketing year and 76,300 for the next marketing year for a total of 442,200 which was a bit below the range of estimates. As of April 12th, cumulative wheat sales stand at 97.9% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 95.0%. Sales of just 81,000 metric tonnes are needed each week to reach the USDA forecast. The European Union granted export licenses this week for 279,000 tonnes which pushed the total for the marketing year to 11.1 million tonnes as compared with 16.2 million last year. Traders remain a bit nervous with the weather in parts of eastern Europe into the Urals and northern Kazakhstan. Temperatures in the region were near 35 degrees above normal. July Oats closed up 3 at 325 3/4. This was 3 up from the low and 4 1/4 off the high.
Recap: Corn Futures (Source: CME)
Corn futures strengthened as the day progressed to finish 19 1/4 and 18 cents higher in May and July futures, respectively, with September up 15 1/4 cents. New-crop futures were mostly up 12 to 13 cents. Corn started off today’s session as a follower to soybeans, but as the day progressed, it surpassed beans and took over the leadership role. Today funds bought 15,000 corn contracts (75 million bu.).
SOFTS-ICE Sugar bounces off 11-mth low, coffee up
LONDON, April 19 (Reuters) - Raw sugar futures on ICE rose, bouncing off an 11-month low hit the previous session, as dealers noted the market might have become oversold after falling around 7 percent over the past week.
Raw sugar futures were higher in early trading, steadying after falling around 3 percent in the previous session as dealers eyed potential additional exports from India.
India 2011/12 cotton exports hit 11.5 mln bales
MUMBAI, April 18 (Reuters) - India has exported a record 11.5 million bales of cotton this year, a senior government official said on Wednesday, clearing product left in limbo after it banned fresh overseas sales last month on worries about domestic supplies.
India has a ban on fresh exports and no further bales awaited clearance. Exports raced ahead of initial government estimates of 8.4 million bales of 170 kg each on higher buying by China to replish its stocks.
USDA approves more sugar imports for U.S.
April 18 (Reuters) - The U.S. Agriculture Department said Wednesday it has approved an increase in raw sugar imports of 450,000 short tons (408,233 tonnes) to meet a supply crunch in the country.
The government said in a statement the increase in imports "is not currently expected to increase FY (fiscal year) 2012 domestic sugar supplies sufficiently to attain a level USDA considers adequate."
Cameroon arabica coffee exports rise 50 pct
YAOUNDE, April 18 (Reuters) - Cameroon arabica coffee exports rose 50 percent to 541 tonnes from October to March 31 compared with the previous year on increased production boosted by higher coffee prices, regulator National Cocoa and Coffee Board (NCCB) said on Tuesday.
"Arabica coffee prices on the world market have been very good, which was reflected on the local market," said NCCB General Manager Michael Ndoping.
Ecuador 12/13 sugar output seen up 7 pct-attache
April 18 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Ecuador:
"Ecuador's sugar production will increase in MY2012/13 by 7 percent to 605,000 tonnes raw sugar value. This is due mainly to increased area under production and the adoption of higher-yield varieties. Ecuador will likely decrease its current import and export levels of refined sugars in MY2012/13. Ecuadorian producers expect exports of raw sugar to the United States to increase."
Ghana may miss cocoa target -Cocobod
ACCRA, April 18 (Reuters) - Ghana may fall short of its 950,000-tonne cocoa output target this season due to dry weather that has hampered growing, the head of regulator Cocobod said, adding to concerns of a global supply deficit this year.
The uncertainty in the world's No. 2 cocoa grower follows months of dry, windy weather that has cut production across West Africa, a region that last season supplied nearly three-quarters of the global crop.
Oil Trades Near Seven-Day Low as Economic Data Misses Targets (Source: Bloomberg)
Oil traded near the lowest close in seven days in New York, heading for a second weekly decline, after weaker-than-expected economic data tempered optimism in U.S. growth. Futures were little changed after slipping a second day yesterday. Jobless claims dropped by 2,000 to 386,000 last week, according to the Labor Department yesterday. The median forecast of 47 economists surveyed by Bloomberg called for 370,000. Home purchases declined 2.6 percent to a 4.48 million annual rate from 4.6 million in February, the National Association of Realtors reported in Washington. Crude for May delivery was at $102.57 a barrel, up 30 cents, in electronic trading on the New York Mercantile Exchange at 8:50 a.m. Sydney time. It fell 0.4 percent yesterday to $102.27, the lowest close since April 10. The more-actively traded June contract rose 27 cents to $102.99 a barrel today. Front-month prices are down 0.3 percent this week.
Brent oil for June settlement gained 3 cents to $118 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark contract’s front month premium to West Texas Intermediate closed at $15.28.
OIL-Brent holds above $118 ahead of Spain auction
SINGAPORE, April 19 (Reuters) - Brent crude futures held above $118 on Thursday as investors remained cautious ahead of a key Spanish bond auction, with renewed fears of a euro zone debt crisis keeping a lid on oil demand.
"Everyone's waiting for the Federal Open Market Committee meeting next week on monetary policy, and the Spain auction later today, with the outcome potentially having an impact on the oil market," said Ken Hasegawa, a commodity derivatives manager at Newedge Brokerage in Tokyo.
Japan cuts April Iran oil purchases 77 pct - trade
TOKYO, April 18 (Reuters) - Japan will slash its crude purchases from Iran by almost 80 percent in April compared to the first two months of the year as buyers comply with Western sanctions, trade sources said.
The cuts, amounting to 250,000 barrels per day, are the steepest yet by the four Asian nations who buy most of Iran's 2.2 million bpd of exports, as tightening sanctions make it tough to pay, ship and insure the oil.
Iraq to lower oil target to more prudent level
LONDON, April 18 (Reuters) - Iraq plans to "slightly lower" an official 12 million barrel per day (bpd) capacity target so that its oilfields can pump more for decades to come, its top energy official said on Wednesday.
Deputy Prime Minister for Energy Hussain al-Shahristani said the new production plateau level, to be set by the end of the year, will be "significantly higher" than a previous 8-8.5 million bpd figure suggested by Iraq's oil minister last year.
Copper Traders Turn Bullish for First Time in Six Weeks (Source: Bloomberg)
Copper traders are bullish for the first time in six weeks on mounting confidence that demand will accelerate in line with economies at a time when mining companies are already failing to keep up with consumption. Eleven of 29 analysts surveyed by Bloomberg expect the metal to climb next week and 10 were neutral. Rio Tinto Group (RIO), based in London, said April 17 that its first-quarter copper output slid 18 percent because the ore mined contained less metal. Codelco, the largest copper producer, said the following day that it sees no weakening in Chinese buying. Barclays Capital is predicting a third consecutive year of shortages.
The International Monetary Fund raised its global growth forecast for the first time in more than a year on April 17. Industrial production in China, the biggest copper consumer, expanded 11.9 percent in March, exceeding economists’ forecasts, the government said April 13. The Bank of Japan is “committed” to monetary easing to shore up the economy, Governor Masaaki Shirakawa said April 18. “You’re beginning to see an improvement in global growth,” said Nic Brown, the head of research at Natixis Commodity Markets Ltd. in London. “China has a slightly slower growth rate, but the economy itself is growing so rapidly that it represents a very substantial increase in demand. You’re going to have a very substantial copper deficit this year.”
Anglo’s Platinum Output Falls 24%, Iron Ore Gains 17% (Source: Bloomberg)
Anglo American Plc (AAL), the biggest platinum producer, said output of the metal fell 24 percent in the first quarter from a year earlier after it shut a plant for maintenance, with fewer safety stoppages stemming the drop. Refined platinum production retreated to 402,800 ounces because of planned annual maintenance at a converting plant in Rustenburg, which was completed last month, Johannesburg-based Anglo American Platinum Ltd., in which Anglo has a 79.9 percent stake, said in a statement today. Safety stops fell to 13 in the quarter from 21 a year earlier and 32 in the prior three months. “Amplats delivered a decent operational first quarter,” Dominic O’Kane and Richard Knights, London-based analysts at Liberum Capital Ltd., wrote in an e-mailed note. Output was 35 percent lower than BMO Capital Markets Ltd.’s estimate of 621,000 ounces, analyst Edward Sterck said in a note.
Anglo American, which also reported a 17 percent increase in iron-ore production and a 21 percent advance in copper output for the quarter, is reviewing the platinum unit as it isn’t delivering the returns the company expects, Anglo Chief Executive Officer Cynthia Carroll said Feb. 17.
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