Soy product futures rose in unison with soybeans. The market traded on both sides of unchanged levels, but strong underlying global demand for soybeans and products kept floor beneath prices until late outside market support attracted fresh buying down the stretch, analysts said. December soyoil settled 0.27 cent or 0.5% higher at 49.90 cents a pound. December soymeal ended $1.20 or 0.04% higher at $338.90 a short ton. (Source : CME)
Global Demand For Crops Forces King Corn Into US Land Fight (Source : CMe)
King corn faces a land fight with other crops as U.S. farmers plan to sow more acres next year to meet strong global demand. Analysts expect growers will have to plant significantly more corn to prevent world supplies from becoming precariously tight. Yet similar strength in global demand for soybeans, cotton and wheat is setting up a competition for those extra acres. Livestock producers and ethanol makers are willing to pay more for corn, with futures climbing to 26-month highs. That will drive farmers to plant more acres next spring, especially since the fall harvest is coming in below expectations. Yet corn isn't likely to be the default crop for farmers looking to expand their plantings to take advantage of higher prices. Growers are only now starting to plan for next year, yet some could be tempted to add acres of cotton, wheat and soybean as prices for those commodities surge as well.
Soybean futures have reached 14-month highs on record buying by China, while cotton prices climbed to their highest level since the post-Civil War period of Reconstruction. Wheat futures have also rallied this year. It's becoming "more and more difficult" to guarantee a large increase in corn plantings, said Marty Foreman, analyst at Doane Advisory Services, an agricultural advisory firm in St. Louis. Analysts say farmers must increase corn plantings by 3 million to 6 million acres, or 3.5% to 7% over this year's level, to meet demand in 2011. The U.S. is the world's largest producer of corn, relied on to keep global markets adequately supplied. The number of acres that farmers plant rises and falls from year to year as they weigh futures prices against expected costs for seed, fertilizer and labor. Growers planted about 319 million acres with the country's principal 15 crops in 2010, compared to 325 million when corn and soybean futures reached record highs two years earlier.
A combined increase of 9 million acres in corn, soybean and wheat is needed in 2011 to keep supplies from running short, said Rich Feltes, vice president of research for commodity brokerage firm RJ O'Brien. Some acres can be counted twice if farmers plant wheat in the fall and then sow soybeans after the wheat is harvested in early summer. Farmers in the fertile Midwest often stick to a rotation of corn and soybeans, with little variation from year to year. Fringe crop areas, such as those in the Mississippi Delta, are expected to be the main battleground for acreage. Texas is likely to be an important swing state since corn, soybeans and cotton are grown there. States in the northern Plains, like North Dakota, will likely plant more corn at the expense of soybeans and possibly spring wheat.
Palm oil barely moves, investors eye Fed decision
KUALA LUMPUR, Nov 3 (Reuters) - Palm oil futures made little headway as some traders felt supply concerns were overdone even as strong monsoons hit certain estates in Malaysia.
"We are looking for more cues on the impact of the monsoon weather on palm oil production," said a trader with a foreign commodities brokerage.
China to stockpile new domestic soy from Nov-April
BEIJING, Nov 3 (Reuters) - Chines government will continue to stockpile the new soy harvest in the four major growing provinces in the northeast from November to April 2011 as part of efforts to help boost farmers' income, said the State Grain Administration on Wednesday.
The purchase price was set at 3,800 yuan ($569.7) per tonne, confirming earlier Reuters report, the body said.
ADM says late Brazil soy crop to boost US exports
CHICAGO, Nov 2 (Reuters) - Late soybean seeding in Brazil due to adverse planting weather will delay the harvest in the key soybean exporting country and bolster U.S. exports of the oilseed, the vice chairman of U.S. agricultural processor Archer Daniels Midland said on Tuesday.
"We're seeing very strong export interest business out of the United States starting with the last month and we expect that to keep going forward," said John Rice, ADM's vice chairman and executive vice president of commercial and production.
ADM to build second biodiesel plant in Brazil
CHICAGO, Nov 2 (Reuters) - U.S. agricultural processor Archer Daniels Midland will begin construction of its second Brazilian biodiesel plant in 2011 and the facility should be completed in 2012, CEO Patricia Woertz said on Tuesday.
The facility will be built adjacent to ADM's soybean crush plant and oil refinery in Joacaba, Santa Catarina, and will have an annual capacity of 164,000 tonnes, Woertz said.
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