Corn (Source: CME)
US corn futures finish stronger on concerns plantings will fall far short of expectations due to poor weather. Linn Group, a brokerage firm, pegged corn plantings at 87.2M acres, down 2.5% from its May estimate and 5.4% from USDA's March estimate. The forecast indicate inventories would become extremely tight, assuming normal yields. The USDA's weekly crop progress report, issued Tuesday, had already raised red flags of how much corn will be planted. The government said 86% of the crop was in the ground, below the average of 95%. CBOT July corn jumps 11c to $7.58 1/2 a bushel
Wheat (Source: CME)
US wheat futures finish sharply lower for the second consecutive day on projections global supplies will rise as Russia ends its export ban July 1. US exporters are expected to lose business to Russia, which is known for selling low-cost wheat to buyers in Asia and Middle East. Rains in Western Europe add pressure as they ease concerns about crop losses due to drought, analysts say. CBOT July wheat sinks 23c to $7.59 1/4 a bushel; KCBT July loses 16 1/2c to $8.91 1/2; MGEX July drops 19 1/2c to $10.05 1/2.
Rice (Source: CME)
US rice futures close down the daily 50c limit on spillover pressure from steep losses in the wheat market. Wheat drags down rice as both grains are global food staples. "When wheat sneezes, the rice catches a cold," says Bill Nelson, analyst for Doane Advisory Services. Improvements in US rice planting and condition ratings add pressure. Plantings were 94% complete as of Sunday, nearly on par with average, following earlier delays due to poor weather, according to federal data issued late Tuesday. CBOT July rice falls 3.3% to $14.56 per hundredweight. The daily limit expands to 75c Thursday.
Wheat Drops on Russia Exports, Europe Rain; Corn, Soybeans Gain (Source: Bloomberg)
Wheat futures fell to a two-week low as Russia prepared to lift an export ban next month and rains expected this week in Europe eased drought concerns. Corn and soybeans rose. Russia, once the world’s second-biggest wheat exporter, will allow shipments starting on July 1. The ban was imposed in August after drought slashed crops. This year, France, Europe’s top grower, is suffering from the driest spring in 50 years, forecaster France Meteo said. Showers were expected this weekend after rain helped crops in Germany, Telvent DTN said.
Argentina Wheat Area Seen At 5M (Source: CME)
Argentina's 2011-2012 winter wheat planting area is expected to reach five million hectares, up from 4.4 million hectares planted last season, the Agriculture Ministry said in a press release. The forecast represents the first estimate from the government for the 2011-2012 season. The ministry based its estimate on increased phosphorus imports. From January to April, imports of the key fertilizer rose 65% on the year to 348,181 tons, the ministry said. The Buenos Aires Cereals exchange has forecast winter wheat planting at 4.95 million hectares, and said planting conditions are good across the farm belt after recent showers. However, government export limits still have prevented some farmers from selling last season's wheat crop, causing some to have doubts about planting again, according to the exchange. The government tightly controls wheat and corn exports, only clearing shipments once domestic supply has been set aside.
Those limits infuriate farmers, who say that they cause them to lose a huge chunk of the value of their grains. Argentina is a major wheat producer, with last season's crop yielding 15 million metric tons. It is also a leading wheat exporter, with most shipments heading to neighboring Brazil.
US corn planting near average but rain threatens
CHICAGO, May 31 (Reuters) - Rainy weather in the eastern Corn Belt was slowing down farmers as they tried to finish up their corn planting tasks in areas east of the Mississippi River, analysts said on Tuesday.
Farmers were nearly in line with their historical planting averages but the damp field conditions in areas that have yet to be seeded would likely slow the final efforts to get the crop in the ground.
Russian wheat to ease Asia's tight feed supply
SINGAPORE, May 31 (Reuters) - Russia's move to lift a ban on grain exports will ease tight feed supplies in Asia, but concerns over harsh weather in top exporters the United States and Europe will keep buyers worried about high-protein wheat production.
Additional volumes of lower-quality wheat from the Black Sea region flowing into Asia will heat up the competition for Australian and South American suppliers, a relief to animal feed producers suffering from record-high corn prices.
US Crop Progress: Eastern Midwest Plantings Lag, West Near Complete (Source: CME)
Planting of corn and soybeans remain a tale of east versus west in the Midwest, with Iowa and Illinois field work nearly done while farther east, seedings remain well behind historical averages. Corn planting nationwide was 86% complete as of Sunday, up from 79% last week and behind the five-year average of 95% for that time of year, according to U.S. Department of Agriculture data issued Tuesday. The progress fell just shy of traders' expectations. Plantings of spring wheat also advanced from last week but remained behind historical averages. In Illinois and Iowa, the country's top two corn-producing states, planting is nearly done. Planting was 99% complete in Iowa, and 94% complete in Illinois, just above their averages of 98% and 93% respectively. The corn crop also made solid strides in development. Sixty six percent of the crop had emerged as of Sunday, compared to 45% a week earlier and behind the average of 78% for that time of year.
Overall the plantings came in as expected, with traders now looking ahead to what farmers will get planted this week before dialing in the potential for acres shifting to soybeans or lost as farmers take prevent planting insurance, said Dax Wedemeyer, analyst with Iowa based brokerage U.S. Commodities. Farmers in the eastern Midwest continued to struggle to put the crop in the ground due to wetness last week. Nineteen percent of Ohio's corn crop was planted versus the average of 93% for this time of year, and Indiana plantings at 59% lagged the five-year average of 87% for this time of year. The crop progress numbers are critical for setting the table for this year's acreage debate with preventive plant insurance deadlines this week, Bryce Knorr, analyst with Farm Futures publication wrote in a market note. "Traders will try to figure out how many of the unplanted acres will still get planted, how many remain bare and how many are planted to an alternative crop such as soybeans," Knorr said.
Grain users are watching planting progress and crop development closely because corn prices reached record highs last month on concerns about tightening inventories. Soybean planting was 51% complete as of Sunday, up from 41% a week ago and behind the average of 71% for that time of year, according to the USDA. Traders had expected planting to fall in a range of 50% to 59% complete. The crop was 27% emerged, behind the average of 39% for that time of year. Progress in soybean planting mirrored the advances in corn, with western areas of the Midwest accelerating, while eastern areas lagged well behind. Planting was 87% complete in Iowa, in line with the average of 88%, while progress in Indiana and Ohio were only 25% and 7% complete, respectively. Soy plantings progressed well, with traders now focusing on weather conditions for a signal of how many acres will be planted to corn amid drier forecasts for the eastern corn-belt this week, said Wedemeyer.
Traders are eagerly watching the weather conditions to see if it will even allow those acres to be planted in a timely manner, particularly with many river valley acres likely not planted this year after record flooding, Knorr said.
US corn 0.7 pct higher as weather slows plantings
SINGAPORE, June 1 (Reuters) - U.S. corn futures rebounded on Wednesday, rising by 0.7 percent, driven higher by concerns of slow crop planting due to wet weather, but the risk of rising supplies from Russia kept wheat prices under pressure.
"The worrying thing is that we are holding near highs , a nd price ex p ectations remain positive with
a rise of another 10 percent if planting conditions don't improve."
US corn planting slows due to wet eastern fields
CHICAGO, May 31 (Reuters) - U.S. farmers struggled to plant their corn crop last week, with the pace the slowest in three weeks due to wet weather, and the first condition ratings of the crop lagging last year.
For some farmers, the delays mean having to decide soon on whether to push ahead with corn seeding despite reaping lower yields, or claiming insurance, analysts said.
Canada to end wheat, barley monopoly together -CWB
WINNIPEG, Manitoba, May 31 (Reuters) - Ottawa plans to end the Canadian Wheat Board's marketing monopoly on spring wheat, durum and barley crops simultaneously in August 2012, the board's chairman said after meeting with Agriculture Minister Gerry Ritz on Tuesday.
Ritz made his first-ever visit as minister to the Wheat Board's Winnipeg head office for a brisk 30-minute meeting to directly inform the marketing agency of the government's plans to scrap its monopoly on western Canadian grain.
Thai prices gain on fresh demand; rising supply weighs
BANGKOK, June 1 (Reuters) - Fresh demand from Africa and the Middle East helped support Thai rice prices this week, but rising supply capped gains, traders said on Wednesday.
The benchmark 100 percent B grade Thai white rice was offered at $500 per tonne, up from $490 last week, they said.
Brazil mid crop cocoa arrivals stutter early on
BRASILIA, May 31 (Reuters) - Deliveries of Brazil's mid-crop cocoa to warehouses in the last week continued to rise as the harvest gathers speed, but it only slightly bettered the previous week which raised doubts about its performance ahead.
Arrivals from top cocoa state Bahia rose to 64,115 60-kg bags in the week through May 29 compared with 61,774 bags in the previous week, a meager jump given the harvest is still in its first weeks, data from Bahia Commercial Association showed.
Cameroon cocoa exports up 18 pct y/y by end-April
YAOUNDE, May 31 (Reuters) - Cocoa exports this season from Cameroon, the world's No.5 grower, reached 188,587 tonnes by the end of April, up 18 percent year-on-year, figures from the National Cocoa and Coffee Board (NCCB) showed on Tuesday.
About 2,282 tonnes were shipped in April, down from 5,591 tonnes for the same month of the previous season, the official data showed.
Ivorian cocoa export tax to remain at current level
ABIDJAN, MAY 31 (Reuters) - The Ivorian government will maintain the current level of export tax on cocoa at 210 CFA francs ($0.46) per kilogram next season and would continue discussions to reform the sector, the World Bank said on Tuesday.
The bank had been putting pressure on the Ivory Coast to cut taxes, which it partly blames for low investments in the sector and lower prices paid to farmers.
Colombia growers raise 2011 coffee crop view
SAO PAULO, May 31 (Reuters) - Colombia's coffee crop this year is seen at 9.5 million to 10 million bags, up from 8.9 million bags in 2010, the technical manager of the National Federation of Growers, Ricardo Villaveces Pardo, said on Tuesday.
Pardo speaking with reporters at the Fourth Coffee Dinner and Forum in Sao Paulo, said that good weather and the replanting of trees was helping to improve yields.
Indonesia's Sumatra coffee bean exports in May rise 12 pct y/y
BANDAR LAMPUNG, Indonesia, June 1 (Reuters) - Indonesia's robusta coffee bean exports from the main growing area in southern Sumatra rose 12 percent to 20,363.25 tonnes from the same month a year ago, data from the government's trade office showed on Wednesday.
Indonesia is the world's fourth largest coffee producer after Brazil, Colombia and Vietnam, and the world's number two robusta coffee producer after Vietnam.
Vietnam coffee prices to rise on tight supply
HANOI, June 1 (Reuters) - Domestic coffee prices in Vietnam, the world's second-largest producer after Brazil, could rise more than 6 percent in the second half of this year due to tight global supplies, the Agriculture Ministry said on Wednesday. Rising prices may prompt Vietnamese growers to further expand their planting area or invest more to raise yields on the current trees in coming years, while roasters may have to pass on additional costs to coffee drinkers worldwide.
Heavy rain could hurt Ivory Coast cocoa quality
ABIDJAN, June 1 (Reuters) - Good rains fell in Ivory Coast's cocoa regions last week boosting the mid-crop crop but the weather could also weigh on the quality of beans in other parts of the world's top grower, farmers and analysts said on Tuesday.
Heavy rains are expected to continue in the first weeks of June, starting around the coastal region of the country and moving inward towards the centre and north.
French watchdog sees G20 commodities deal this year
PARIS, May 31 (Reuters) - The world's top economies will agree a framework this year to help dampen commodity speculation and price swings by identifying who is behind large positions that influence markets, France's market regulator said.
France, as president of the world's 20 leading economies (G20), steps up a gear in June with its push to shine a light on commodities where surging food and oil prices have triggered social unrest, bumped up inflation and cooled economic growth.
Oil Drops a Second Day as Global Manufacturing Slows; U.S. Supplies Rise (Source: Bloomberg)
Oil declined for a second day in New York after reports showed U.S. crude supplies rose, companies added fewer jobs than forecast and global manufacturing slowed, stoking speculation fuel demand may falter. Futures fell as much as 0.7 percent after the biggest drop in three weeks yesterday. Crude stockpiles climbed the most in more than a month, according to the American Petroleum Institute. Employment rose by 38,000 in May, the smallest gain since September, ADP Employer Services said. A 175,000 increase was forecast, according to a Bloomberg News survey. Manufacturing in China, Europe and the U.S. slowed in May.
Crude Oil Declines the Most in Three Weeks as U.S. Employers Curb Hiring (Source: Bloomberg)
Crude oil dropped the most in three weeks after data showed that U.S. companies added fewer jobs than forecast last month and the expansion of manufacturing slowed, bolstering concern fuel demand growth will weaken. Oil fell 2.4 percent after ADP Employer Services said employment rose by 38,000 in May, the smallest gain since September. A 175,000 increase was forecast, according to a Bloomberg News survey. The Institute for Supply Management’s factory index decreased to the lowest level since September 2009, the Tempe, Arizona-based group said today.
Gold Declines on Speculation Greece to Get Funds, Avoid Sovereign Default (Source: Bloomberg)
Gold may decline for a second day in New York as speculation that Greece’s debt crisis is closer to being resolved curbs demand for the metal as a protection of wealth. Greece’s next aid package may include incentives for bondholders to roll over maturing debt without triggering a credit-rating downgrade that would roil Europe’s banking system, two people with knowledge of the talks said. The dollar was little changed against six major currencies after dropping to a three-week low. Bullion typically moves inversely to the greenback.
PRECIOUS-Gold eases as Greek debt worries recede
LONDON, June 1 (Reuters) - Gold eased on Wednesday after receding worries about Greece's debt crisis suppressed some of the appetite among investors for safe havens, while the rise in the single European currency dented the euro price of bullion.
Gold came off a four-week high of $1,540.50 hit in the previous session, as European officials met to sketch out options for a second bailout package for Greece.
Global miners may cut Q3 iron ore prices as spot drops
SINGAPORE, June 1 (Reuters) - Global miners may trim iron ore contract prices by around 1 percent in the third quarter following a drop in the average index price from a record high in the second quarter, Reuters calculations showed.
Based on Platts index prices for March to May, to which top iron ore miners Vale and Rio Tinto peg third-quarter contract prices, the 62-percent grade averaged $176.96 a tonne, cost and freight, down 1.3 percent from a record $179.24 in December-February.
Vale sees strong China iron demand, shares rising
RIO DE JANEIRO, May 31 (Reuters) - Demand for iron ore from China, the world's largest consumer, has not slackened despite a slowdown in other parts of that economy, an executive with Brazilian mining company Vale said on Tuesday.
Although the Chinese government has clamped down on credit to fight inflationary pressures, infrastructure and major construction works appeared to be unaffected, said Vale's chief financial officer, Guilherme Cavalcanti.
METALS-Copper steady after China data, soft dollar supports
LONDON, June 1 (Reuters) - Copper was steady on Wednesday as signs of slowing factory activity in China and Europe constrained prices and attention turned to pending U.S. figures, while a weak dollar against the euro cushioned prices.
Three-month copper on the London Metal Exchange traded at 9,210.25 at 0959 GMT from a close of $9,220 a tonne on Tuesday.
