Wednesday, April 25, 2012

20120425 0955 Global Commodities Related News.

GRAINS-U.S. wheat up for 2nd day on weather; soy rebounds
SINGAPORE, April 24 (Reuters) - U.S. wheat edged up  , while corn was little changed after climbing 1.6 percent in the last session on forecasts for crop-threatening cold weather and talk of Chinese buying.
"U.S. corn plantings were a bit lower than what the market had expected because of the rain and there has been talk of potential cold weather which will not be good for the early planted corn," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne.

Ukraine exports 1.75 mln T grain so far in April
KIEV, April 24 (Reuters) - Ukraine has exported 1.75 million tonnes of grain, mostly corn, so far in April, Interfax Ukraine news agency quoted official data as showing on Tuesday.
The agency said the volume included 1.13 million tonnes of corn, 490,000 tonnes of wheat and 120,000 tonnes of barley.

Ukraine '12 wheat crop could fall to 11-14 mln T
KIEV, April 24 (Reuters) - Ukraine is set for a sharp fall in the 2012 wheat harvest, with the crop expected at 11 million to 14 million tonnes versus 22.3 million in 2011 due to poor weather during sowing and wintering, a senior weather forecaster said on Tuesday.
"If we have rains in May, the harvest could be 14 million tonnes. Otherwise, 11 to 12 million," Tetyana Adamenko, head of the agricultural department of Ukraine's meteorological service, told Reuters.

US corn planting slows; soy seeding off to record start
CHICAGO, April 23 (Reuters) - U.S. farmers east of the Mississippi River made good planting progress, while growers in western areas of the Corn Belt were slowed by rainy weather, a U.S. Agriculture Department report showed on Monday.
The USDA's weekly crop progress and conditions report showed that U.S. corn seeding was 28 percent completed as of April 22, up from 17 percent a week ago and ahead of the five-year average of 15 percent, but down from analysts expectations.

Ukraine 2012 early grain sowing near end
KIEV, April 23 (Reuters) - Ukrainian farms have almost completed the 2012 early spring sowing at 3.6 million hectares as of April 23 or 96 percent of the expected area, the Farm Ministry said on Monday.
The ministry said in a statement farmers had also started the sowing of corn and sunflower, which should replace winter grains in areas hit by poor weather this winter.

EU raises wheat, cuts barley, rapeseed yield outlook
PARIS, April 23 (Reuters) - The European Commission's crop-monitoring unit on Monday raised slightly its forecast for the average yield of this year's soft wheat crop in the European Union but trimmed its outlook for barley and rapeseed yields.
"In general the current prospects for EU 27 yields are on average," the Monitoring Agricultural Resources (MARS) research unit said in a report.

Market Recap: Wheat Futures (Source: CME)
Wheat futures were stronger much of the day, but softened in late trade to end mostly weaker and near session lows. Chicago wheat ended steady to 4 1/4 cents lower, Kansas City was mostly around 2 cents lower and Minneapolis ended mostly 7 to 8 cents lower, although far-deferreds ended mixed. Early support came on spillover from neighboring pits as well as help from positive outside markets.

Wheat Market Recap Report (Source: CME)
July Wheat finished unchanged at 632 1/2, 14 1/2 off the high and 1 3/4 up from the low. December Wheat closed down 3/4 at 671 1/4. This was 1 3/4 up from the low and 14 off the high. May wheat closed slightly lower on the session after trading as much as 14 1/4 cents higher early today. A positive tilt to outside markets and cold weather concerns for the weekend and early next week for crops in Illinois, Indiana and Ohio helped to support active buying and more short-covering in wheat this morning. This pushed the market to the highest level since April 13th with July wheat now up as much as 37 3/4 cents from last weeks lows. A smaller Ukraine crop estimate added to the positive tone. Crop conditions declined slightly and spring wheat progress remains on a record fast pace. July Minneapolis wheat closed down 8 1/2 cents with the fast planting pace for spring wheat helping to pressure. Canadian wheat planted area was pegged at 24.3 million acres, up 13% from last year and about 1 million acres above trade expectations. A private forecaster in Europe pegged German wheat production at 22.2 million tonnes this year from 22.7 million last year. The market is beginning to view the May production report with an eye on big yield and production estimates for the winter wheat crop. July Oats closed up 15 3/4 at 342 1/2. This was 13 1/2 up from the low and 2 1/2 off the high.

Market Recap: Corn Futures (Source: CME)
Corn futures closed 2 1/2 to 4 1/2 cents lower in all but the September contract, which settled 3/4 cent higher. Corn futures finished in the lower end of today's range. Corn futures were initially supported by news of a daily corn sale totaling 480,000 metric tons to an unknown destination. Traders assumed this was confirmation of the rumored Chinese purchases.

Corn Market Recap for 4/24/2012 (Source: CME)
July Corn finished down 4 1/2 at 608, 13 3/4 off the high and 3 up from the low. December Corn closed down 4 at 541 1/2. This was 3 3/4 up from the low and 8 1/2 off the high. May corn moved from sharply higher on the day early in the session to close moderately lower on the day. The market saw confirmation of China demand from the USDA sales news this morning and the market surged higher early in the day to post the early high. However, "buy the rumor, sell the fact selling helped to spark a sell-off from the highs with the market trading just slightly higher on the day into the mid-session and December corn moving down on the day. December corn closed 4 cents lower after trading as much as 5 1/2 higher early. The early rally pushed the market to the highest level since April 13th. Private exporters reported a sale of 480,000 tonnes of US corn to unknown destination for the 2011/12 season. Traders believe this sale is to China. The slower than expected plantings pace and a cold weather outlook for the next week helped to support the market as well. September corn gained 4 3/4 cents on the December corn as traders see "less" chances of early harvested corn due to the slower plantings pace and a cool outlook for the next 10 days. Taiwan bought 60,000 tonnes of corn from Brazil. July Rice finished down 0.005 at 15.925, 0.005 off the high and 0.055 up from the low.

Dow's new corn: "time bomb" or farmers' dream? (Source: CME)
A new biotech corn developed by Dow AgroSciences could answer the prayers of U.S. farmers plagued by a fierce epidemic of super-weeds. Or it could trigger a flood of dangerous chemicals that may make weeds even more resistant and damage other important U.S. crops.
Or, it could do both."Enlist," entering the final stages of regulatory approval, has become the latest flashpoint in the debate about the risks and rewards about farm technology. With a deadline to submit public comments on Dow's proposal at the end of this week, more than 5,000 individuals and groups have already weighed in. Dow Agrosciences, a unit of Dow Chemical Co ,  hopes to have the product approved this year and released by the 2013 crop.

Algeria's Q1 grain imports down 12.7 pct y/y (Source: CME)
Algeria's wheat imports in the first quarter of this year were down 12.7 percent on the same period in 2011, customs data showed, after an easing off in social unrest and a more promising domestic harvest softened demand.

US corn planting slows; soy seeding off to record start (Source: CME)
U.S. farmers east of the Mississippi River made good planting progress, while growers in western areas of the Corn Belt were slowed by rainy weather, a U.S. Agriculture Department report showed on Monday.
The USDA's weekly crop progress and conditions report showed that U.S. corn seeding was 28 percent completed as of April 22, up from 17 percent a week ago and ahead of the five-year average of 15 percent, but down from analysts expectations.

SOFTS-Sugar, coffee steady above multi-month lows
LONDON, April 24 (Reuters) - Raw sugar futures on ICE steadied in early trading, hovering above the previous session's 11-month low, while arabica coffee also firmed, consolidating above an 18-month low hit on April 16.
Raw sugar futures consolidated, with the lower price range expected to stimulate further interest on the physical market, following recent purchases by Egypt and Tunisia.

Vietnam Coffee-New crop may rise, trade moderate
HANOI, April 24 (Reuters) - Vietnamese coffee trading has been moderate as prices held near a key level in the past week even as stock levels were good and the next harvest may show a gain over the previous period, traders and an industry official said on Tuesday.
Output from the next 2012/2013 coffee crop in Daklak, Vietnam's top growing province, is forecast to rise around 10 percent to 430,000-450,000 tonnes, or 7.2 million to 7.5 million bags, thanks to good weather, an industry official said.

India could export 3 mln tonnes sugar in 2012/13 - industry
NEW DELHI, April 24 (Reuters) - India could export 3 million tonnes of sugar in 2012/13 -- the same as approved so far this year -- with output of at least 25 million tonnes, a senior industry official said, keeping the world's second-biggest producer exporting for a third straight year.
India, which is the world's biggest consumer of sugar, returned to exports in 2010 after a severe drought in 2009 forced it to import about 2.5 million tonnes, sending global prices sharply higher.

Brazil cotton exports seen record large -producers
SAO PAULO, April 23 (Reuters) - Brazil's 2011/12 cotton exports should jump by more than half from last season to a record 1.3 million tonnes, the national producers' association said, as cooling domestic demand shifts the sector's focus to foreign markets.
Increasing demand by China was providing a new outlet for the fiber at a time when imports of synthetic fiber from their depressed demand at home, said Sergio De Marco, president of the Brazilian Cotton Producers' Association, Abrapa.

Good weather spell lifts Ivorian mid-crop cocoa hopes
ABIDJAN, April 23 (Reuters) - Adequate rains mixed with sunny spells last week in most of Ivory Coast's cocoa growing regions provided adequate growth conditions for the top producer's April to September mid-crop cocoa, farmers and analysts said on Monday.
In western, southern and eastern cocoa regions, farmers said rainfall during past week offered ideal conditions to boost the development of cocoa pods, however, continued dry conditions in the coastal regions raised some concerns.

China seen importing 3 mln T sugar in 2011/12-ISO
NEW DELHI, April 23 (Reuters) - China is likely to import 3 million tonnes of sugar in 2011/12, a top official of the International Sugar Organisation (ISO) said at a conference in India, the world's second biggest producer after Brazil.
"China will remain a big importer. They produce around 11 million tonnes but they need 14.0-14.5 million tonnes," ISO Executive Director Peter Baron told reporters.

China sandstorm hits cotton crops, small impact on output
BEIJING/SHANGHAI, April 23 (Reuters) - Cotton crops just planted in China's northwestern province of Xinjiang have been damaged by a heavy sandstorm over the past week, but there will be limited impact on this year's harvest, analysts said on Monday.
China is the world's largest producer and consumer of cotton. A fall in its domestic supply, which rose 11 percent last year to 6.6 million tonnes, could hoist imports higher and roil world prices.

India to produce surplus sugar in 2012-13, extend exports
NEW DELHI, April 23 (Reuters) - Top sugar consumer India is expected to produce enough of the sweetener in the coming 2012-2013 productions season to allow exports for the third consecutive year, the head of its sugar mill body said on Monday.
India, the world's second-largest producer of sugar after Brazil, was hit by a severe drought in 2009 and had to import about 2.5 million tonnes, sending global prices on a rally. India returned to exports in 2010/11.

Coal Seen Rebounding as China Sets Steel Output Record (Source: Bloomberg)
Coking coal prices are set to rebound as early as July from four straight quarterly declines as China and India seek raw material overseas to fire new steel production in the world’s fastest-growing major economies. Contract prices that fell to $206 a metric ton for the quarter ending June 30 may rebound to average $225 a ton this financial year, based on the mean estimate of 10 analysts, steelmakers and mining companies surveyed by Bloomberg. Contracts of coking coal, a key ingredient used to make steel, peaked at $330 in the June quarter last year. China, the largest steel producer, is leading demand growth forecast at almost 10 percent this year. It started about 10 new blast furnaces in the past six months, lifting output to a record in March, according to market researcher Custeel.com. India, the third-biggest steelmaker, is set to boost capacity a third to more than 100 million tons by March in a five-year $1 trillion plan to build roads, bridges and railway networks.
“Rising Indian imports will have a positive impact on coking coal,” said Natalie Robertson, an analyst at ANZ Banking Group Ltd. in Melbourne. “The near-term prices will more closely track development in China.” China may surpass Japan as the biggest coking coal importer by 2015, a position it may eventually relinquish to India, Robertson said.

Oil Trades Near One-Week High as U.S. Stockpiles Decline (Source: Bloomberg)
Oil traded near the highest level in a week in New York after the American Petroleum Institute said crude inventories fell in the U.S., the world’s biggest consumer of the commodity. Futures were little changed after rising 0.4 percent yesterday. U.S. stockpiles decreased by 985,000 barrels last week, the industry-funded API said. An Energy Department report today is forecast to show a gain of 2.8 million barrels. The Arabian Gulf Oil Co., Libya’s largest crude producer, warned that it may have to cease production because of protests, according to the state-run Libya News Agency. Crude for June delivery was at $103.74 a barrel, up 19 cents, in electronic trading on the New York Mercantile Exchange at 8:47 a.m. Tokyo time. The contract rose 44 cents to $103.55 yesterday, the highest close since April 17. Front-month prices are 5 percent higher this year.
Brent oil for June settlement declined 55 cents, or 0.5 percent, to $118.16 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark contract closed at a premium of $14.61 to New York futures. The spread between the contracts surged to a record $27.88 on Oct. 14.

OIL-Brent steady under $119, supply worries aid; Europe eyed
SINGAPORE, April 24 (Reuters) - Brent oil steadied near $119 a barrel on Tuesday, as a production stoppage in the North Sea and potential supply disruptions from Iran kept prices off lows hit in the previous session amid concerns about a euro zone crisis.
"The whole macro picture at the moment just doesn't look good for crude. It's looking pretty bearish," said Jim Ritterbusch, president of oil trading consultant Ritterbusch & Associates in Galena, Illinois.

China cuts Iran oil imports in March most this year
BEIJING/SEOUL, April 23 (Reuters) - China halved its Iranian crude imports in March compared with a year earlier due to disputes over contract terms, its deepest cut so far this year as Western sanctions complicate Tehran's oil exports.
South Korea cut its imports by 40 percent in March from a year earlier, official data showed, as it sought to secure an exemption from U.S. sanctions. Japan, which has secured a waiver, made steep cuts in April imports.

Iran squeezed by Asia oil import cutbacks
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
SINGAPORE, April 24 (Reuters) - Virtually every day there is news on how Iran's oil exports to Asia are being squeezed by Western sanctions, but the question that still remains unresolved is just how much pain is Tehran feeling.
The latest sign that Iran may be starting to feel the pinch is that half of the Islamic Republic's tanker fleet is being used for floating storage, presumably because buyers for cargoes can't be found.

Gold May Decline on Concern Over Slack Physical Demand (Source: Bloomberg)
Gold rose for the third time in four sessions as a weaker dollar increased the appeal of the precious metal as an alternative investment. The dollar declined as much as 0.4 percent against a basket of currencies as lower yields of Spanish and Italian bonds eased concerns that Europe’s debt crisis is worsening. The pound reached an almost six-month high against the dollar after the Debt Management Office said Britain’s net-financing requirements had fallen. “News of some stability in Europe is pushing the dollar lower,” Sterling Smith, a market analyst at Country Hedging in St. Paul, Minnesota, said in a telephone interview. “People are willing to consider riskier assets today.” Gold futures for June delivery climbed 0.7 percent to settle at $1,643.80 an ounce at 1:42 p.m. on the Comex in New York. Prices have gained 4.9 percent this year.
Mexico boosted its gold reserves by 16.8 metric tons to 122.6 tons last month, according to data on the International Monetary Fund’s website. Nations including Turkey, Russia and Kazakhstan also increased bullion holdings in March, the data show.

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