Corn (Source: CME)
US corn futures close sharply lower on profit-taking and spillover selling from a steep slide in crude oil. Losses in crude impact grains because ethanol is made from corn and funds often trade in a basket of commodities. "Crude oil, I think, is the No. 1 market that is hammering the grains right now," says Citigroup analyst Terry Reilly. Watchers remain bullish as high prices have not yet taken a significant bit out of corn demand. CBOT May corn falls 23 1/2c to $7.52 1/2 a bushel after reaching a record high above $7.80 Monday.
Wheat (Source: CME)
US wheat futures sink on profit-taking and spillover selling from other markets. Wheat felt pressure from losses in corn and crude oil as commodity funds sold an estimated 10,000 contracts at the CBOT, a relatively heavy amount, traders say. Wheat briefly traded below corn for the first time since 1996, but the product is expected to rebuild its premium as the relationship will encourage more feeding to livestock, analyst say. Drought also continues to threaten Plains output. CBOT May wheat falls 38 3/4c to $7.59 1/2 a bushel, KCBT May loses 25c to $8.94 and MGE May drops 24c to $9.11 3/4.
Oats (Source: CME)
US oat futures fell, keeping pace with broader based losses in neighboring grain futures. Widespread commodity losses overshadowed support from planting issues due to drought concerns in Texas and cool, wet weather in the northern Plains and Canada. Oats for May delivery dropped 10 1/2 cents or 2.6% to $3.91 a bushel.
Rice (Source: CME)
US rice futures finish deep in negative territory as broad-based selling engulfs commodity markets. Concerns about the health of the global economy rattled the markets as Goldman Sachs warned clients of "demand destruction" for oil, analysts say. CBOT May rice closes down 35c at $13.37/hundredweight.
U.S. wheat, corn slide amid commodities selloff
SINGAPORE, April 12 (Reuters) - U.S. wheat fell around 2 percent, while corn lost more than 1 percent as grains took a breather following a report from Goldman Sachs advising investors to lock-in profits before oil and other markets reverse.
"Energy prices and the dollar are having an impact on the agricultural commodities," said Abah Ofon, an analyst with Standard Chartered Bank in Singapore.
China sells 131,720 T feed wheat, weekly corn offer lower
BEIJING, April 12 (Reuters) - The central government sold 131,720 tonnes of state reserves of low quality wheat for animal feed production to ease tight corn supplies, while reducing the volume of corn offered at weekly auctions by as much as 64 percent.
The feed wheat, from a total of 306,098 tonnes offered on Tuesday, was sold at an average of 1,823 yuan ($278.828) per tonne, 2 percent higher than last week's price, reflecting interest from feed mills.
US corn planting pace seen as fastest on record
CHICAGO, April 11 (Reuters) - U.S. farmers planting corn appear to be off to their fastest start on record due to dry weather in southern areas, motivated by the tightest stocks since the 1930s which have pushed prices to record highs.
The U.S. Agriculture Department's weekly crop progress report on Monday afternoon, the first of the year, is likely to show that farmers had planted 4.5 percent of their anticipated corn acreage as of April 10, based on an average of estimates given by nine analysts.
Corn Declines 0.3% to $7.55 Per Bushel in Chicago as Soybean Futures Climb (Source: Bloomberg)
Corn declined as much as 0.3 percent to $7.55 a bushel in Chicago and traded at $7.5675 a bushel, while wheat fell 0.2 percent to $7.905 a bushel and soybeans increased 0.1 percent to $13.425 a bushel.
Philippines sees strong Q1 farm output, bigger rice crop
April 12 (Reuters) - Philippine farm output was stronger in the first quarter than in the last three months of 2010, and the country is expected to surpass its rice production forecast for the first half of the year, the agriculture secretary said on Tuesday.
An increase in rice and corn production helped the overall farm output in the March quarter grow at least 7 percent from a year earlier, stronger than the previous quarter's 6.35 percent, Proceso Alcala told a media conference.
Fierce Drought Hurts Farmers In The Southwest (Source: CME)
A scorching drought in much of the Southwest is hurting farmers across several states and potentially crimping supplies of crops and cattle. In Texas, where the past six months has been the driest such period on record since 1967, more than half of the state is parched by extreme drought, according to the Drought Monitor, a compendium of government and academic estimates. New Mexico, too, is drying out, with almost 75% of the state in a severe drought, the monitor shows. In Oklahoma, the period between January and March was the driest since 1921, including the 1930s Dust Bowl years, said the state's associate climatologist, Greg McManus. Parts of the southern U.S. have battled drought on and off since 2006, but this year is shaping up to be particularly bad, because of an exceptionally dry winter and spring, when the region usually receives more rain. The drought is hitting the Southwest at a time of rising commodity prices that have attracted the attention of policy makers in the U.S. and elsewhere.
Because of the sizable agricultural industry in the Southwest, a decline in production could exacerbate an already tight supply situation. Forecasts call for less-than-average rains in Texas and New Mexico in the next three months, and at least for the next month in Oklahoma, according to climatologists in those states. In response, at some of the country's most productive farms and ranches, farmers are destroying unsalvageable wheat crops and selling cows earlier than usual. Bill Hyman, a cattle rancher in Gonzales County, Texas, about 70 miles south of Austin, said he auctioned off some of his animals earlier this year. With scant grass on the fields, he is feeding supplemental hay to the rest of his herd, but is keeping other expenses down to a minimum. "We're not buying tractors; we're not buying equipment; we're not buying anything," said Mr. Hyman, who is also executive director of Texas' Independent Cattlemen's Association.
The U.S. Agriculture Department said 66% of wheat fields in Texas and 60% of those in Oklahoma were in poor to very poor condition as of Sunday. The two states accounted for 17% of the nation's production last year. Much of the nation's winter wheat crop -- which is planted in the fall and harvested in early summer -- is grown on the Southern Plains. Because of the drought there, 36% of the U.S. winter wheat crop is in poor to very poor condition, compared to just 6% this time last year. In a March report, the U.S. government said it expected farmers to devote 8% more acres to planting all types of wheat than last year. Wheat from other states could compensate for the lower-than-average yields in the south, but heavy rains in some areas, including North Dakota, have delayed the spring planting, said Kim Anderson, a crop marketing specialist with Oklahoma State University.
With wheat prices high, it's also possible that countries in the southern hemisphere such as Australia and Argentina will plant more wheat, he added. Until recently, this growing season promised to be a profitable one for farmers, as the budding world economy raised demand for food. For many farmers, it's not just the immediate harvest that is in danger. Terry McAlister, a farmer in Wichita County, Texas, 160 miles northwest of Dallas, said he decided not to spread fertilizer or prepare his fields for such summer crops as cotton and grain sorghum. "We're not going to be able to plant anything until we get rain," he said. Craig Sanders, a farmer near Boise City in the Oklahoma panhandle, is more optimistic. Although he's expecting his wheat crop to start turning brown any day, he's going ahead with summer planting and hoping for rain. "I've seen it happening in this country," he said. "It'll turn around and get wet and raise a hell of a crop."
The drought is also likely to further shrink herd sizes, which are already down some 500,000 beef cows from last year, according to USDA data. "When it comes to enjoying a steak or hamburger, what happens with the drought in Texas eventually affects everybody," said David Anderson, a livestock economist at Texas AgriLife. The state is the biggest producer of beef in the country.
Ship Owners Charging Premiums To Lease Vessels For Japan Delivery (Source: CME)
Ship owners are charging premiums to provide their vessels for delivery of cargoes to some of the ports close to the nuclear radiation zone in Japan, industry executives said. charter had to pay a huge premium for a vessel to deliver cargo to Japan's Chiba port in a recent case, Kyuho Whang, Chief Executive of Seoul-based SK Shipping, said on the sidelines of an international shipping conference. He said premiums vary depending on the cargo and the vessel, while more importantly, some shipping crews are also reluctant to call at the Japanese ports. "The master of the ship has the full authority to decide on going to these ports. We aren't boycotting Japan, but [we] want it to be on safe terms," said Morten Arntzen, Chief Executive of Overseas Shipholding Group Inc. He said that shipping companies haven't previously had to deliver cargoes close to an area affected by nuclear radiation, so it is a "steep learning curve."
Oil Falls for a Third Day as Higher Prices Are Forecast to Curtail Growth (Source: Bloomberg)
Oil declined for a third day in New York after the International Energy Agency said that prices above $100 a barrel are starting to hurt the global economy, and as U.S. stockpiles of crude increased.
IEA Says Oil Prices Above $100 Hurt Economy, Keeps Demand Outlook Stable (Source: Bloomberg)
The International Energy Agency maintained its outlook for global oil demand in 2011, while warning that prices above $100 a barrel are starting to hurt the global economy. Worldwide oil consumption will increase by 1.4 million barrels a day, or 1.6 percent, this year to average 89.4 million a day, the Paris-based adviser said today in its monthly Oil Market Report. Still, preliminary data “already show signs of oil demand slowdown,” and global supplies are starting to look “thin” as the conflict in Libya strains OPEC members’ spare production capacity, the IEA said.
Copper in London Rebounds from Biggest Drop in a Month on Demand Outlook (Source: Bloomberg)
Copper in London gained for the first time in three days, rebounding from its biggest drop in a month, as some investors remained positive on the outlook for demand this year.
Goldman sees risk oil, commodity prices could slide
NEW YORK, April 11 (Reuters) - Long-term commodity bull Goldman Sachs warned clients on Monday to lock-in trading profits before oil and other markets reverse, with the bank's estimates suggesting speculators are boosting crude prices as much as $27 a barrel.
Traders said the call from one of the biggest banks in commodities contributed to a near 3 percent slide in U.S. oil futures , on expectations the bank's numerous clients could close out positions with U.S. crude prices up 20 percent for the year so far.
China March daily steel output up 4.6 pct vs Feb -industry website
SHANGHAI, April 12 (Reuters) - China's daily crude steel output rose 4.6 percent to 1.914 million tonnes in March from February, industry website Custeel.com said on Tuesday, citing data from the China Iron & Steel Association (CISA).
The revised daily output for February was 1.829 million tonnes.
METALS-Copper falls as Japan crisis hits sentiment
LONDON, April 12 (Reuters) - Copper fell on Tuesday as Japan's worsening nuclear crisis and aftershocks hit market confidence and weakened prospects for economic recovery and metals demand growth in the world's third-largest economy.
Three-month copper on the London Metal Exchange fell about 1 percent and was at $9,775.75 a tonne by 0946 GMT from $9,855 at the close on Monday, extending losses from the previous session.
PRECIOUS-Gold eases as dollar steadies; silver gathers pace
LONDON, April 12 (Reuters) - Gold fell for a second day on Tuesday, under pressure from a steadier dollar after having hit record highs on Monday, while a warning from Japan about the severity of its nuclear crisis fed modest safe-haven demand.
Goldman Sachs' decision on Monday to book profits on its positions in crude oil, copper, platinum and some agricultural commodities weighed on the raw materials sector, including gold.
Cocoa steady, focus on Ivorian mid crop; sugar rises
ICE cocoa futures were little changed in early trading on Tuesday as dealers focused on an expected resumption of exports from top producer Ivory Coast after the capture of defeated leader Laurent Gbagbo. Ivory Coast accounts for about 40 percent of world supplies. Raw sugar futures on ICE firmed in early trade, after the U.S. Agriculture Department authorised the import of nearly 295,000 tonnes in fiscal 2011.
Uganda cuts 2010/11 coffee export fcast-UCDA
KAMPALA, April 12 (Reuters) - Uganda has cut its 2010/11 (Oct-Sept) coffee export forecasts to 2.67 million 60 kg bags from 3.1 million bag previously due to drought, the Uganda Coffee Development Authority said on Tuesday.
"There was a prolonged dry spell which lasted about four months and left insufficient moisture in the soil and caused trees to shed some cherries, which ultimately impacted output," a source at UCDA said.
India 2010/11 cotton arrivals up 1.1 pct to 27.3 mln bales
MUMBAI, April 12 (Reuters) - Domestic cotton arrivals in Indian spot markets till April 10 in the 2010/11 season edged up 1.1 percent on year, the state-run Cotton Corp of India said on Tuesday.
Arrivals as on April 10 stood at 27.3 million bales of 170 kg each, compared with 27 million bales a year ago, the government body said on its website.
China March cotton imports 276,400 T, down 15 pct on yr -industry website
BEIJING, April 12 (Reuters) - China imported 276,400 tonnes of cotton in March, down 15 percent from the same period last year, an industry website said on Tuesday, citing Customs data.
The March imports were up 50 percent, or 92,200 tonnes more from February, according to a report on a website under China National Cotton Reserves Corp.
