Market Recap: Wheat Futures (Source: CME)
Chicago and Kansas City wheat futures saw two-sided trade today but settled low-range with Chicago 4 to 8 cents lower and Kansas City narrowly mixed. Minneapolis wheat rallied late to finish fractionally to 4 1/4 cents higher, with the exception of the May contract. Futures took their cue from the corn market today, which also saw a mixed day of trade and softened into the close.
Wheat Market Recap Report (Source: CME)
July Wheat finished down 6 at 626 1/2, 16 1/4 off the high and 2 1/2 up from the low. December Wheat closed down 5 1/2 at 665 3/4. This was 2 1/4 up from the low and 13 1/2 off the high. July wheat pushed from higher to lower on the session to close moderately lower on the day. Less fear of cold weather issues ahead plus ideas that the winter wheat crop yield potential is very high helped to pressure. The surge in soybeans, positive outside market forces and a surge higher in the stock market helped to support the strong opening. However, a lack of new buying interest and a push lower in corn sparked a fairly aggressive selling pace from fund traders and a moderately lower on the day trade in wheat into the mid-session. Less cold weather in the forecast for the eastern Corn Belt plus more rain in the forecast for the plains were seen as negative weather forces which helped to pressure. Libya expected to import near 1 million tonnes in 2012. July Minneapolis wheat was down sharply on the day into the mid-session and down to the lowest level since January 20th. July Oats closed down 3/4 at 341 3/4. This was 6 1/2 up from the low and 3 1/4 off the high.
Corn Market Recap for 4/25/2012 (Source: CME)
July Corn finished down 7 at 601, 16 off the high and 1/4 up from the low. December Corn closed down 3 1/2 at 538. This was 2 up from the low and 8 3/4 off the high. July corn closed moderately lower on the day after first trading moderately higher on the session. Funds were noted as aggressive sellers of near 12,000 contracts on the session. The market followed the soybean rally overnight and then got a boost near the opening due to more active sales announcements from China. However, similar to yesterday, there was buy the rumor, sell the fact type session which pulled the market lower on the day into the mid-session. Slower ethanol demand and weaker wheat prices were also seen as negative forces. Private exporters reported a sale of 420,000 tonnes of US corn to unknown destination for the 2012/13 season. In addition, exporters reported a sale of 262,500 tones of US corn for China. Of the sale, 90,000 was for the 2011/12 season and 172,500 for the 2012/13 season. Ethanol production for the week ending April 20th averaged 865,000 barrels per day. This is down 2.15% vs. last week and down 2.04% vs. last year. Corn used in last week's production is estimated at 92.1 million bushels. Corn use needs to average 94.2 million bushels per week to meet this crop year's USDA estimate. Stocks were 21.852 million barrels. This is down 0.53% vs. last week and up 13.32% vs. last year. The outlook for sharply higher production this summer has continued to spark selling. The May USDA report will be the first look at the 2012/13 ending stocks. Traders see stocks near 1.8 billion bushels for the May report as compared with 801 million bushels for the 2011/12 season. July Rice finished up 0.075 at 16, 0.04 off the high and 0.15 up from the low.
Market Recap: Corn Futures (Source: CME)
Corn futures got off to a firmer start but buying interest quickly dried up and futures drifted lower. Old-crop corn ended 7 to 7 1/4 cents lower, with September down 6 1/2 cents. New-crop corn ended mostly between 2 to 3 cents lower. Funds were active sellers of 12,000 contracts today (60 million bushels). The inability of the market to rally on positive news signals traders' focus is on the potential for a large 2012 crop.
Moroccan Agmin sees cereals harvest at 4.8 mln T (Source: CME)
Morocco's cereals harvest should reach 4.8 million tonnes this year, the agriculture minister said on Tuesday, which is far below last year's level and the crop budget for 2012, but slightly above the most recent forecasts. Aziz Akhannouch made the announcement in remarks carried by the official MAP news agency. He did not give a breakdown per variety.
Canadian farmers to plant more wheat than expected (Source: CME)
Canadian farmers intend to plant nearly a million acres more wheat than the industry expected in the first year of an open grain market, along with a record-large canola crop, Statistics Canada reported Tuesday in its initial forecast of 2012 planting intentions. Drier-than-normal weather in Western Canada, stretching back to last summer, brought millions of previously flooded acres back into production this spring, lifting plantings of most major crops.
Is the bloom off new crop corn's rose? (Source: CME)
Bullish corn traders continue to view the robust tone of spot domestic corn basis levels as a sign that this market has further upside potential in the weeks and months ahead. But a slight cooling in the basis at key export locations as well as the recent downward grind in the price of corn in China raise the prospect that old-crop corn may have had its day as the grain market to watch and is now set for a stretch of low-key range-bound action until we get deeper into the new crop-growing season.
GRAINS-US soy at highest since 2008; wheat, corn rise
SINGAPORE, April 25 (Reuters) - Chicago soybeans rose to their highest in nearly four years, building on the previous session's rally on expectations of strong demand for U.S. beans amid shrinking South American supplies.
"The soybean market is going to go higher as the entire edible oil sector is going to be severely constrained for the rest of the year," said Abah Ofon, a commodities analyst at Standard Chartered in Singapore.
Malawi maize crop seen down, still in surplus
BLANTYRE, April 25 (Reuters) - Malawi's maize crop is forecast to fall this season by around 7 percent to 3.6 million tonnes, the southern African country's agriculture ministry said on Wednesday.
It also said in a statement it projects a surplus of around 567,000 tonnes but a clearer picture will emerge when two more forecasts are made during harvesting. Production was around 3.8 to 3.9 million tonnes last year.
Ethiopia 11/12 grain output high-attache
April 24 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Ethiopia:
"Ethiopia is one of the largest grain producing countries in Africa, although it is still a food insecure country and a net importer of grain. Cereals are predominantly produced by smallholders, and are consumed as food, with only residues and by-products fed to livestock. Due to good rainfall in 2011, production of all grains in Marketing Year (MY) 2011/12 was high.
Canadian farmers to plant more wheat than expected
WINNIPEG, Manitoba, April 24 (Reuters) - Canadian farmers intend to plant nearly a million acres more wheat than the industry expected in the first year of an open grain market, along with a record-large canola crop, Statistics Canada reported Tuesday in its initial forecast of 2012 planting intentions.
Drier-than-normal weather in Western Canada, stretching back to last summer, brought millions of previously flooded acres back into production this spring, lifting plantings of most major crops.
S.Africa further cuts 2012 maize crop f'cast
JOHANNESBURG, April 24 (Reuters) - South Africa cut its 2012 maize output forecast by nearly 2 percent on Tuesday, bang in line with market expectations, citing continued unfavourable weather conditions.
The government's Crop Estimates Committee (CEC) said in its third production forecast for the May 2011-April 2012 season that the country is now expected to harvest 11.12 million tonnes of maize from 11.3 million tonnes in the previous forecast.
Moroccan Agmin sees cereals harvest at 4.8 mln T
RABAT, April 24 (Reuters) - Morocco's cereals harvest should reach 4.8 million tonnes this year, the agriculture minister said on Tuesday, which is far below last year's level and the crop budget for 2012, but slightly above the most recent forecasts.
Aziz Akhannouch made the announcement in remarks carried by the official MAP news agency. He did not give a breakdown per variety.
Vietnam Jan-April rice exports -28.1 pct y/y-govt
HANOI, April 24 (Reuters) - Vietnam's rice exports between January and April are estimated to be down 28.1 percent from the same period last year to 1.96 million tonnes, the government's General Statistics Office said on Tuesday.
Rice export revenues in the first four months fell an estimated 27.8 percent from a year earlier to $969 million, the statistics office said in its monthly report.
SOFTS-Sugar extends bounce, cocoa consolidates
LONDON, April 25 (Reuters) - Raw sugar futures extended their recovery from an 11-month low hit earlier this week, boosted by a weaker dollar. Raw sugar futures were higher, supported by the dollar hitting a three-week low against a basket of currencies, as the market extended its recovery from an 11-month low hit on Monday after funds liquidated long positions.
Costa Rica sees 5 pct drop in coffee crop next season
SAN JOSE, April 24 (Reuters) - Costa Rica coffee production is forecast to drop 5 percent in the upcoming 2012/13 harvest due to the biennial nature of the crop, as coffee trees usually produce less after a boom year.
The small Central American country, known for its high-quality arabica beans, sees next season's production down nearly 90,000 bags, reaching a total of 1.71 million bags, the national coffee institute ICAFE said on Tuesday.
India seen net sugar exporter again in 12/13-attache
April 24 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in India:
"Indian sugar production is poised to increase to 29.8 million tonnes (raw value basis) in marketing year (MY) 2012/13 (October-September) due to an expected increase in sugarcane production. Anticipating surplus sugar production and strong export demand for 2012/13, India will continue to be a net exporter of sugar for second consecutive year, with exports likely to reach as much as 2.5 million tonnes. Continued strong demand from bulk consumers will push sugar consumption to 26.5 million tonnes."
Dry weather to prevent record Argentina sugar crop-attache
April 24 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Argentina:
"Argentine sugar production in marketing year 2012/13 is projected at 2.04 million tonnes (raw value). Everything was set for a record crop, primarily as result of additional planted area, but dry weather in most part of the growing season negatively affected most plantations without irrigation. Domestic consumption is forecast to increase marginally, while exports could expand to 260,000 tonnes (raw value)."
Rain to help young Brazil cane but slow the harvest
SAO PAULO, April 24 (Reuters) - Brazil's world-leading sugarcane belt will get widespread rain later this week that will help to speed growth in much of the main center-south crop that dry weather in February and March had stunted, local weather forecaster Somar said.
The new, heavy rainfall expected over all of Sao Paulo and Parana states in the second half of this week will likely push back the start of harvesting until next week, meteorologist Marco Antonio dos Santos said in a bulletin released late on Monday.
Vietnam April coffee exports up 18.8 pct on yr
HANOI, April 24 (Reuters) - Vietnam's coffee exports this month are estimated to jump 18.8 percent from a year ago to 150,000 tonnes, or 2.5 million bags, the government's General Statistics Office said on Tuesday, in line with market expectations.
Coffee loading between October 2011 and April, the first seven months of the 2011/2012 coffee crop year, dropped an estimated 2.8 percent from a year earlier to 909,700 tonnes, or 15.2 million 60-kg bags, the statistics office said.
Rubber Futures Gain 0.1% to 306.7 Yen/Kg in Tokyo (Source: Bloomberg)
Rubber futures gained 0.1 percent in Tokyo. The October-delivery contract rose to 306.7 yen a kilogram at 9:00 a.m. local time.
Euro Coal-May S.African trades at $99.70/T
LONDON, April 24 (Reuters) - European prompt physical coal prices softened again on Tuesday but few trades were reported.
A May loading South African capesize cargo traded at $99.70 a tonne, falling below $100 once more, but the price reflects the discount which a very prompt cargo would have, traders said.
Coal India mulls 15 mln T imports -suppliers
LONDON, April 24 (Reuters) - The world's largest coal miner, Coal India (CIL) , has been discussing importing up to 15 million tonnes of thermal coal with suppliers, but there are numerous obstacles to overcome before a tender can be issued, supplier sources said.
"Coal India is clearly under a lot of pressure to make up the shortfall in its own output but a lot needs to be covered before they can import," one Delhi-based source said.
U.S. coal exports to China may double in 2012-Xcoal
BEIJING, April 19 (Reuters) - U.S. coal exports to China could more than double to over 12 million tonnes in 2012 thanks to depressed freight rates and a fall in domestic demand in the United States, the chief of top U.S. coal exporter Xcoal Energy & Resources said.
The expected increase in coal shipments could further push down coal prices in Asia where a supply glut following a deluge from the United States and Colombia has forced prices to slump recently.
Oil Trades Near Weekly High on Demand Outlook After Fed (Source: Bloomberg)
Oil traded near the highest level in more than a week in New York after Federal Reserve policy makers said they expect growth to accelerate, boosting speculation that fuel demand will rise. Futures were little changed after gaining 0.6 percent yesterday. Economic growth is expected to “remain moderate over coming quarters and then to pick up gradually,” the Federal Open Market Committee said in a statement. Prices declined earlier as U.S. supplies gained and Iran’s envoy in Moscow said his country is considering a proposal to halt the expansion of its nuclear program. Crude for June delivery was at $104.05 a barrel, down 7 cents, in electronic trading on the New York Mercantile Exchange at 9:46 a.m. Sydney time. The contract yesterday rose 57 cents to $104.12, the highest close since April 17. Prices are 5.3 percent higher this year.
Brent oil for June settlement increased 0.8 percent to $119.12 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. Iran is considering a Russian proposal to halt the expansion of its nuclear program in order to avert new sanctions, Iranian Ambassador Mahmoud-Reza Sajjadi said in Moscow yesterday. Oil prices have climbed this year amid speculation that tension with Iran may disrupt global supplies.
OIL-Brent hovers above $118, waiting for Fed
SINGAPORE, April 25 (Reuters) - Brent crude hovered above $118 a barrel on Wednesday as investors marked time ahead of the outcome of the U.S. Federal Reserve's policy meeting, with some investors hoping to hear hints of further monetary easing in the world's top oil user.
"We are not expecting drastic changes from the Fed, but we are hoping to hear hints about QE3," said Ken Hasegawa, a commodity derivatives manager at Newedge Brokerage.
Mine Setbacks Mean ‘Disappointing’ Copper Output, Barclays Says (Source: Bloomberg)
Copper supplies relative to demand will fall to a four-year low as operating glitches, labor shortages and declining ore-grade quality cut mine supplies, boosting prospects for a price rebound, Barclays Capital said. Stockpiles will be sufficient to last for 2.7 weeks by the end of the year at projected demand, down from 3.2 weeks at the end of 2011 and 3.6 weeks at the end of 2010, Gayle Berry and Nicholas Snowdon, analysts at Barclays Capital, said in a telephone interview. Copper will average $9,300 a metric ton in the fourth quarter, the bank said in a report on April 12. The commodity has averaged $8,300 so far this year.
Prices have more than doubled since the end of 2008 as miners struggled to keep pace with rising demand. Freeport- McMoRan Copper & Gold Inc., the world’s top publicly traded copper producer, cut its 2012 sales forecasts last week after violence among employees halted output at its Grasberg mine in Indonesia for more than two weeks in February and March. Rio Tinto Group said on April 17 that production of the metal dropped 18 percent in the first quarter because of lower ore grades at its Kennecott Utah operation. “All of these issues are going to keep the level of disruptions elevated,” Snowdon said. “There are new projects hitting the market, but it’s a relatively disappointing outlook” for supply, he said.
Iron Ore-Spot falls on slow demand, Shanghai steel at 7-wk lows
SINGAPORE, April 24 (Reuters) - Prices of imported iron ore in top consumer China fell on Tuesday as buying interest for the steel-making raw material weakened along with slow demand for steel, with Shanghai rebar futures hitting near seven-week lows.
A slower pace of decline in inventories of steel products held by Chinese traders has raised concern about demand going forward, but some analysts say the continued drop in stockpiles since mid-February suggests demand is picking up, albeit modestly.
Vale Q1 net seen falling 45 pct on prices, volumes
RIO DE JANEIRO, April 24 (Reuters) - First-quarter profit at Vale , the world's biggest iron-ore producer, likely fell by nearly half from a year earlier due to lower prices for its main products, heavy rain and spending on new mines, analysts surveyed by Reuters said.
The Rio de Janeiro-based company is expected to announce late Wednesday net income of $3.8 billion for the quarter ending March 31, according to the average estimate of six analysts surveyed by Reuters. That's 45 percent less than the same quarter in 2011 and 19 percent less than in the previous quarter.
Indian state to resume iron ore mining in July-minister
NEW DELHI, April 24 (Reuters) - Iron ore production by privately owned miners in India's Karnataka state will likely resume in July, the country's mines minister said on Tuesday, after what will have been a year's hiatus due to a government and judicial crackdown on illegal operations.
Dinsha Patel said initial production from the southern state would go to local steel mills, but a resumption of mining means the world's third-biggest supplier of iron ore could hope to regain its $6 billion, 100 million tonnes average annual exports, mainly to China, in 2012/13.
Baltic sea index up, panamax rates rise 4.9 pct
April 24 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, rose for a 10th straight session on Tuesday on higher rates for smaller vessels.
The overall index, a gauge of the cost of shipping commodities such as iron ore, cement, grain, coal and fertiliser, rose 26 points or 2.39 percent to 1,116 points.
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