Corn(Source: CME)
US corn futures close higher as wet weather is expected to continue delaying planting. Rains will fall in western Illinois Saturday and start proceeding eastward, according to meteorologists at Freese-Notis Weather, a private forecaster. "We're going to have seven days of rain," predicts Bill Wiebold, extension specialist at the University of Missouri. Grain users, nervous about tight inventories, are snapping up supplies left over from last year's harvest because they worry this fall's will start late. CBOT July corn rises 11 1/4c to $7.59 1/2 a bushel.
Wheat(Source: CME)
US wheat futures finish lower as traders book profits following recent rallies. CBOT wheat pulled back for the second day after gaining more than 17% for the week as of Wednesday's close. Yet, concerns persist about harsh weather reducing global output. Excessive rains in the US northern Plains and dryness in France are unfavorable for crops. Grain users worry supplies of high-quality wheat are tightening. CBOT July wheat drops 5 1/2c to $8.06 1/2 a bushel; KCBT July loses 11 1/2c to $9.33 1/4; MGE July slides 6 1/2c to $9.99 3/4.
Rice(Source: CME)
US rice futures finish stronger as the market continues to rebound from a nearly 1-month low hit last week, climbing almost 10% since May 11. Concerns about rains delaying US planting and hurting early crop development add support, an analyst says. CBOT July rice rises 8 1/2c to $15.10/hundredweight.
Corn in Chicago Gains as Much as 1.9% to $7.7375 a Bushel; Wheat Climbs(Source: Bloomberg)
Corn for July delivery increased as much as 1.9 percent to $7.7375 a bushel on the Chicago Board of Trade before trading at $7.7325 by 8:37 a.m. Singapore time, while wheat advanced as much as 1.7 percent to $8.20 a bushel and last traded at $8.175. July-delivery soybeans rose 0.6 percent to $13.88 a bushel.
US corn up on exports, wheat headed for biggest weekly gain
SINGAPORE, May 20 (Reuters) - Chicago corn rose around half a percent, trading close to a three-week top as strong U.S. exports supported the market, while wheat dipped for a second day after climbing to a three-month high in the previous session. "We did see demand return quite significantly as U.S. export sales were particularly strong and what that signals to us is that significant pent up demand remains in the global feed grain market," said Luke Mathews, an agricultural commodities strategist at Commonwealth Bank of Australia.
S.Africa maize output f'cast seen steady
JOHANNESBURG, May 20 (Reuters) - South Africa's May 2010-April 2011 season maize estimates are likely to remain steady from last month's forecast, a Reuters survey showed on Friday, but late and heavy rains could affect the crop quality.
The average estimates of seven trading houses polled by Reuters showed that Africa biggest economy's maize output for the 2010/11 season is likely to be 10.85 million tonnes, slightly more than the 10.8 million tonnes in the previous traders' forecast.
Rain lifts West Australia wheat crop prospects
SYDNEY, May 20 (Reuters) - Rain has fallen across Western Australia this week, improving crop prospects for what is typically the country's top wheat exporting state, where hopes had been fading for pick-up in production following a prolonged drought.
More wet weather is forecast for the next 24-hours, according to the country's weather bureau, providing a window of opportunity for the state's farmers to start seeding crops in the hope of recovering from one of the worst harvests on record in 2010/11.
Vietnam rice exports rise 20.6 pct in year to date
HANOI, May 20 (Reuters) - Vietnam's rice exports so far this year have reached 2.87 million tonnes, a rise of 20.6 percent from a year ago, the Vietnam Food Association said.
That reflects deals Vietnam signed earlier this year with the Philippines, Indonesia and several African countries. However, rice prices in Vietnam and elsewhere in Asia may ease in coming weeks as demand has now slowed and supply is rising.
Farm states suffer expanded drought, wheat suffers
KANSAS CITY, Mo., May 19 (Reuters) - A dire drought that has plagued Texas and parts of Oklahoma expanded across the key farming state of Kansas over the last week, adding to struggles of wheat farmers already dealing with weather-ravaged fields.
Harvest in Kansas, the top U.S. wheat-growing state, is set to begin within weeks. But a report issued Thursday by a consortium of climatologists said the three most severe levels of drought spread across the state over the last week, with the most dire conditions concentrated in the key wheat-growing south-central and southwest parts.
Heavy rains loom over eastern U.S. Corn Belt
CHICAGO, May 19 (Reuters) - Heavy rains will move through the U.S. Corn Belt beginning Thursday in the west and continuing until next week in the east, slowing crop planting especially in eastern Midwest, a forecaster said on Thursday.
"The biggest concerns are still Indiana, Ohio and North Dakota. That area is in tough shape and it's going to get very wet as we go into the weekend and the first part of next week," said Mike Palmerino, Telvent DTN forecaster.
China Unlikely To Start Government Wheat Purchase Program This Year(Source: CME)
China is unlikely to start a program to buy wheat from farmers at government-set minimum prices for state reserves this year, as market wheat prices are well above the protective level, the State Administration of Grain said. In October of last year, the government set this year's wheat purchase prices for state reserves at CNY1,860-CNY1,900/ton, up to 8% higher than a year earlier, to protect farmers' interests. Market wheat prices are now around CNY2,150/ton. The administration expected good harvests of wheat and rapeseed this year, but prices of wheat and rapeseed oil will likely be stable and remain at high levels after the current harvest is completed, it said in a statement, without mentioning the highly-anticipated government purchase prices for rapeseed. Market talk that China Grain Reserves Corp.
will buy rapeseed at CNY4,500-CNY4,600/ton, up sharply from last year's CNY3,900/ton, drove benchmark January rapeseed oil futures up on Zhengzhou Commodity Exchange to settle at CNY10,506/ton, a three-week high.
Mexico Sees 2011 Food Export Value At $20 Billion, Up 10%(Source: CME)
Mexico's food exports will reach a value of $20 billion in 2011, up from roughly $18 billion last year, an official with the Agriculture Ministry said. A low inflation rate and macroeconomic factors are favorable for the agriculture sector this year, said Ernesto Fernandez-Arias, deputy minister for the ministry's agricultural aid unit. The production of sorghum, wheat, cotton and other crops is expected to go up as favorable prices motivate producers to increase the amount of land cultivated. Officials with the ministry said earlier today that the country plans to increase the presence of its agricultural products in the U.S. as well as to branch out from its northern neighbor's market.
Argentina Minister: More Food Output Needed To Address High Prices(Source: CME)
Argentina reiterated its position that high global prices for foodstuffs like grain need to be addressed by increasing production, rather than regulating prices. Speaking at a gathering of agriculture ministers from Group of 20 nations, Agriculture Minister Julian Dominguez said the use of technology like genetic engineering and the cultivation of semi arable lands are key if food production is to keep pace with the World's growing population. "The solution to the problem of hunger is more food and not looking for mechanisms to artificially reduce international prices," he said during the opening address. Argentina aims to increase its output of grain and oil seeds to 160 million metric tons by the end of the decade, up from an estimated 100 million tons this year, he said. Argentina leads the world in soymeal and soyoil exports and is the third-largest soybean exporter. Argentina is also the world's No. 2 corn exporter.
Though prices for many agricultural commodities have backed off record highs in recent weeks, they remain elevated due in part to fears about tight supplies. U.S. corn inventories are projected to reach a 15-year low this year, while global wheat supplies face adverse weather conditions in the U.S. Plains, Canada, and France. In February, the World Bank warned that soaring food prices had pushed tens of millions of people into poverty across the globe. Argentina and Brazil--two of the world's largest commodity producers and G-20 members--have opposed efforts to regulate the trading and prices of commodities. France, which holds the presidency of the G-20 this year, has pushed for greater oversight of the financial markets that deal in commodities. Argentine officials have shown some willingness to discuss greater regulation and transparency of derivatives markets.
"The elevated volatility for these products which worries the presidency of the G-20, is without a doubt related to financial speculation," Argentina's Economy Minister Amado Boudou said at the event. While the administration of Argentina's President Cristina Fernandez has resisted attempts to lower international prices for agricultural products, at home she has taken a number of measures to keep domestic food prices low. Her government tightly controls wheat and corn exports, only clearing shipments once domestic supply has been set aside. Those limits irritate farmers, who say that it forces them to sell their harvest at less attractive prices on the local market. Taxes on grain exports, namely soybeans, are an important source of revenue for the Fernandez administration. Those exports also underpinn the country's hefty trade surplus, which totaled $12.06 billion last year.
European Wheat Prices To Revisit 3-Year Highs On Drought-Analysts(Source: CME)
Forecasters and traders said wheat prices could hit the three-year highs touched in February if drought in Europe and the U.S. continues to stress next year's wheat crop. New-crop wheat prices have gained sharply this week, hitting three-month peaks of EUR251.50 a metric ton on the November Paris milling wheat contract on Thursday, driven by concerns next season's harvest could be irreparably damaged. But now analysts say the current bull run may continue, taking futures above the near-record highs of EUR281/ton touched in February as the worst drought in decades tightens its grip on Europe's fecund farmland. "I think there are still significant risks that wheat prices could push back to the highs we saw in February if weather doesn't improve in the coming weeks," said Erin Fitzpatrick, an analyst at Rabobank.
Production expectations for next season are falling by the day as drought across key growing regions of France, Germany, the U.K. and Poland--which account for 65% of EU-27 output--wilts the young crops in the fields. Parts of Europe received less than 40% of their average rainfall between February and April and analysts now say up to 12% of France and Germany's crop will be lost even if rain does arrive. "If we do not get the right mix of rain and sun in the coming 8-10 weeks, then later this year we will see record price levels," said Charles Robertson of Renaissance Capital. Concerns about crops in the U.S., Australia, Canada and Russia are also keeping the market nervous. Last year's rally was sparked when an historic drought in Russia prompted the Kremlin to ban exports and take tens of millions of tons of the world's cheapest wheat out of the international market.
Although initially delayed by poor weather, at the end of last week Russian farmers had planted spring crops on 18.921 million hectares, only 4.5% less than on the same date last year, the Agriculture Ministry reported. In forecast generally regarded as over-optimistic by the trade, the U.S. Department of Agriculture last week forecast that wheat exports from the Black Sea region, including Russia, Ukraine and Kazakhstan could double to more than 26 million tons in 2011-12. But Eugen Weinberg, analyst at Commerzbank, said with weather so unpredictable at this stage, any production estimates are very much uncertain until the grain is in the storage bins. "We're still in the development stage," he said. "The troubles last year only came in June to July. "EUR280/ton is definitely on the cards at the moment."
Spain Asks For Early EU CAP Payments As Weather Hurts Farmers(Source: CME)
Spain has become the latest country to apply for early European farming support subsidies this year as poor weather continues to threaten harvests across the region, a spokesman for the European Commission said. The European Union's executive arm has already approved in principal France's request for an advance on the Common Agricultural Policy, which would pay farmers around $4 billion on Oct. 16, rather than in December. But Roger Waite told Dow Jones Newswires Spain had also applied for early support for its producers, which could total up to $2.6 billion, while "Belgium, Italy and Luxembourg are expressing an interest, and Hungary too." Europe is in the grip of the worst drought to hit the region for decades, with some parts receiving only around 40% of their average rainfall between February and April. France's Ecology Minister has declared "a state of crisis" and imposed restrictions on the use of water in 28 out of 96 of its administrative regions due to the lack of rainfall.
In Spain, however, unseasonably heavy downfalls have stopped farmers planting this year's tomato crop, delaying the start of the season. Analysts forecast output from the key producing region of Extremadura could fall 22% compared with 2010 to 1.38 million metric tons, while Andalusia could lose 35% of its crop compared with last year. Waite said the Commission is likely to decide on the early payments in June or July. The Oct. 16 deadline is imposed because it is the start of the new budget year and so advances couldn't be made before then, he said. But he added that under the EU's state aid scheme, farmers could be paid up to EUR7,500 in extra support over a three year period. "It's not possible for things to be advanced before 16 October but if farmers were to go to a bank and ask for banks to advance the statement the member costs could cover the cost of interest under state aid," he said.
France Expands Restrictions on Use of Water as Dry Conditions, Heat Endure(Source: Bloomberg)
French authorities widened water-use restrictions to 42 of France’s 96 mainland departments as drought conditions persisted in the country, the European Union’s largest agricultural producer. The number of departments in France with limits and bans on water use as of yesterday had increased from 28 on May 16, according to a statement by the Environmental Ministry published on its website today.
Sugar, coffee firm, NY sugar week wraps up
LONDON, May 20 (Reuters) - ICE sugar and coffee futures firmed in early trading in modest volumes, with many dealers travelling back to their desks as New York sugar industry week wrapped up. ICE raw sugar futures edged up in light volumes with upside capped by forecasts for a wider global surplus of the sweetener in 2011/12 as New York sugar industry week wrapped up. A European broker noted that the Brazilian crop size was being talked down at the New York sugar week, which was attended by many Brazilian producers.
Peru coffee output seen up 5 pct-attache
WASHINGTON, May 19 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Peru: "Peru's coffee production for Marketing Year 2012 is forecast at 4.4 million 60-kilogram bags, an increase of 5 percent compared to the previous year. Coffee exports in CY 2010 were 229,524 tonnes valued at a record of $887 million. Coffee exports in MY 2012 are forecast at 4.2 million 60-kilogram bags."
Brazil begins harvesting high-quality coffee crop
BRASILIA/SAO PAULO, May 19 (Reuters) - Brazil's coffee pickers are heading back to the fields to gather the world's largest coffee crop now turning ripe and showing high quality, signaling relief for a coffee trade juggling low stocks.
Agronomists and traders at three cooperatives and one broker contacted by Reuters were much more optimistic about the crop's prospects than at the outset of the previous two crops, dogged by weather-related quality problems early on.
Oil Declines Amid Concerns Over U.S. Economic Growth, Greek Debt Default(Source: Bloomberg)
Oil declined in New York amid signs the economy is slowing in the world’s biggest crude-consuming nation and on concern Greece may default on its debt, stoking speculation fuel demand may slow. Futures slid as much as 0.7 percent today after U.S. stocks fell for a third week and Staples Inc. and Gap Inc. cut profit projections. A U.S. Commerce Department report on May 27 may show consumer spending cooled in April, according to economists surveyed by Bloomberg News. Greek Prime Minister George Papandreou is scheduled to brief his Cabinet today on added budget cuts and asset sales to keep European aid flowing.
April daily average aluminium output 70,400 T -IAI
LONDON, May 20 (Reuters) - Daily average primary aluminium output in April rose to 70,400 tonnes from 69,800 tonnes in March, provisional figures from the International Aluminium Institute (IAI) showed on Friday.
Total production in April was 2.112 million tonnes, compared with 2.163 million tonnes in March and 1.983 million in April 2010.
Russian Copper eyes $1.2 bln London IPO-paper
MOSCOW, May 20 (Reuters) - Russian Copper Co (RCC) plans to offer 20-25 percent of shares in a London float this year, anticipating a recovery in copper prices, business newspaper Kommersant said on Friday.
Russia's third-biggest copper producer could raise between $900 million and $1.2 billion through the IPO scheduled for the third quarter of the year, Kommersant said, citing sources close to the situation and RCC's shareholders.
U.S. brass mill imports, exports up in March yr/yr
NEW YORK, May 19 (Reuters) - U.S. imports of brass mill products rose 4.9 percent in March compared with March 2010, and exports increased by 10.4 percent from the year ago period, an industry group said this week.
Imports of all brass mill products into the United States in March firmed to 43,933,141 lbs from 41,895,716 lbs in the year-ago period, the Copper and Brass Fabricators Council said in its monthly report.
S.Korea buys 1,500 T copper; reissues tin tender
SEOUL, May 20 (Reuters) - South Korea bought 1,500 tonnes of copper cathode for shipment by July 15 to the port of Incheon via a tender closed on May 13, while passing on a tin tender that will now close on May 26, the state-run Public Procurement Service said on Friday.
The agency bought copper from domestic refiner LS Nikko at a premium of $88 per tonne over London Metal Exchange (LME) cash prices on a cost, insurance and freight (CIF) basis, it said on its website (www.g2b.go.kr).
China daily crude steel output at record high early May
BEIJING/SHANGHAI, May 20 (Reuters) - Daily output of crude steel in China reached 1.9467 million tonnes in the first 10 days of May, with production at record levels despite worries about power shortages and the impact of Beijing's monetary tightening policies.
Industry consultancy Mysteel, citing data from the China Iron and Steel Association, said output was up 0.29 percent from May 1-10 compared with the previous 10 days.
Quality issues threaten India iron ore sales to China
MUMBAI/BEIJING, May 19 (Reuters) - India's iron ore exports and prices could be hit by quality issues on $2.2 billion of shipments raised by top buyer China, an Indian industry official said on Thursday.
India is the world's third-largest iron ore supplier and sends almost all its exports to China, trade worth around $1.5 billion per month.
METALS-Copper up, investors look to China signals
LONDON, May 20 (Reuters) - Copper rose on Friday, regaining ground after losses in the previous session, as a weaker dollar lent support and investors looked to positive signals from top consumer China.
Three-month copper on the London Metal Exchange traded at $9,046 a tonne by 0934 GMT from $8,950 at Thursday's close. The metal used in power and construction has seen some choppy trade this week, rising some 3 percent on Wednesday before falling again on Thursday.
PRECIOUS-Gold up on loose U.S. monetary policy prospects
LONDON, May 20 (Reuters) - Gold rose on Friday, helped by a soft dollar after poor U.S. economic data this week raised prospects the Federal Reserve will keep monetary policy loose for some time to come.
Bullion has dropped about 5 percent since rallying to a lifetime high near $1,575 an ounce in early May, but expectations the Fed will keep monetary policy ultra-loose for a while longer could polish gold's safe haven appeal.
