Corn (Source: CME)
US corn futures finished stronger on concerns declining condition ratings indicate the USDA will cut its output forecast. Government has lowered its good-to-excellent rating for the corn crop by seven percentage points in the past two weeks. That leads market participants to "believe the yield numbers have nowhere to go but down," says Tim Hannagan, analyst for PFG Best. The good-excellent rating is down 10 percentage points from last year but USDA sees the yield rising almost six bushels/acre from last year. CBOT December corn jumps 12 1/4c to $6.86 3/4 a bushel.
Wheat (Source: CME)
US wheat futures closed higher on spillover support from rising corn and soybean prices. Gains in the other markets lift wheat because the grains are all used for livestock feed. Yet, demand news wasn't supportive for wheat. Egypt, often the world's top wheat importer, booked Russian wheat in a tender and none from the US. Competition for business has increased since Russia resumed grain exports this month. CBOT September wheat rises 5 1/2c to $6.94 a bushel; KCBT September gains 10c to $7.80 1/2; MGE September advances 8 1/4c to $8.39.
Rice (Source: CME)
US rice futures finished higher on spillover support from gains in grain and soybean markets. Additional support comes from ongoing concerns the US crop will fall short of expectations due to poor weather and reduced plantings. The USDA raised its weekly good-excellent rating for the crop by three percentage points to 63%, but that is down 10 percentage points from a year ago. CBOT September rice closes up 5 1/2c at $17.21/hundredweight.
Food inflation in focus amid lofty crop price outlook
CHICAGO, July 25 (Reuters) - Grain prices will likely remain elevated at the end of this year, a Reuters poll showed, providing little relief to food prices while continuing to challenge policymakers battling to tamp down inflation.
Many analysts say the era of cheap food may well be over as rising crop production struggles to keep pace with soaring global demand, particularly from the mushrooming middle-class populations of developing nations such as China and India.
Corn, soy ratings seen down for second week
CHICAGO, July 25 (Reuters) - The condition of U.S. corn and soybean crops declined as the plants withered in the heat last week, particularly in southern and western growing areas, analysts said.
The health of corn and soybean crops deteriorated a week ago and the downtrend was seen continuing as a heatwave settled over much of the country.
US spring wheat tour changes tack to count yields
CHICAGO, July 22 (Reuters) - The annual spring wheat tour that kicks off next week will be different from past years.
With the crop planted late due to rains and floods, volunteer scouts from the grain industry on the expedition this year will have to alter the way they calculate yields.
US Midwest Heatwave Stresses Corn, Beans (Source: CME)
U.S. corn and soybean crops deteriorated last week due to extreme heat and dryness, the U.S. Department of Agriculture confirmed Monday. The USDA, in a weekly crop-progress report, cut its good-to-excellent rating by four percentage points, to 62%, for corn and by two percentage points, to 62%, for soybeans. Both declines were at the high end of what traders expected. "Soaring temperatures and limited precipitation stressed crops and livestock last week," the USDA's Indiana office said in a report. Grain traders are keeping a close eye on the weather and condition ratings because farmers need to harvest a large crop to replenish low inventories. Prior to last week's heat wave, crops had already struggled with persistent rains and flooding that delayed planting. The good-to-excellent rating for Indiana's corn crop dropped seven percentage points, to 46%, and six percentage points for the soybean crop, to 47%, according to the USDA.
The good-to-excellent rating for corn also dropped seven percentage points in Ohio, with the government pegging it at 48% as of Sunday. The ratings could recover if weather conditions improve this week, said Steve Georgy, broker and analyst at Allendale, a brokerage in Illinois. Temperatures are expected to moderate and rain is possible this weekend after heavier-than-expected showers brought relief to the Midwest during the past weekend. "If we don't see these 90- and 100-degree temperatures, I think we could see crop improvement," Georgy said. Late planting has left crops in some areas more susceptible to damage from extreme heat because they didn't have time to develop extensive root systems to access moisture deep in the ground. The USDA noted that Indiana farms suffered because "storms that carried rainfall also knocked down corn in some areas, with shallow-rooted corn especially vulnerable."
Development of the crops is behind schedule due to the late planting, as well. The corn crop was 65% in the silking stage of development as of Sunday, behind the five-year average of 69% for this time of year, and 9% in the dough stage of development, behind the average of 12%, according to the USDA. The soybean crop was 60% in the blooming stage of development, behind the average of 68%, and 16% of the crop was setting pods, behind the average of 27%. As for cotton, a severe drought in the southern U.S. continues to hurt the crop. The USDA increased its good-to-excellent rating for cotton by one percentage point from last week, to 29%, but raised its poor-to-very-poor rating by one percentage point, to 41%. Land used for pasture also continue to struggle. The USDA rated 44% of pasture and range land as good to excellent as of Sunday, down from 46% a week earlier. In the northern Plains, the USDA increased the good-to-excellent rating for the spring wheat crop one percentage point from last week, to 74%.
A year ago, 83% of the crop was rated good to excellent.
U.S. corn up as dlr falls, focus turns to yields
SYDNEY, July 26 (Reuters) - U.S. corn firmed, recouping some of the previous day's losses on a fall in the U.S. dollar and as traders assessed the yield impact of the recent U.S. heat wave and subsequent cool down.
"Much of the focus is on yields as there will be a few private forecasts out next week and there is a pretty wide range of forecasts on corn yields as well as beans," said Brett Cooper, senior manager, markets, for FCStone Australia.
Indonesia sees longer dry season lasting to Nov
JAKARTA, July 26 (Reuters) - Indonesia's state weather agency on Tuesday forecast the country's dry season will last longer than normal until November, a boon for coal miners but potentially hurting rice output.
A prolonged wet season last year hurt crops such as coffee and flooded mines. A longer dry season this year will favour miners, but experts said it could hit efforts to boost rice supply, underlying recent government moves to import the staple.
Japan Importers Start Corn Purchases For 4Q (Source: CME)
Japan has started purchasing corn for October-December shipment, buying at least 300,000 metric tons in the last few days, trading executives said. Japan is the world's largest corn importer and buys around 3.2 million tons of feed-grade corn each quarter. All purchases so far are from the U.S., an executive with a Tokyo-based commodities trading company said. Traders said purchases would have been higher but for the rise in prices earlier this month. They said compound feed manufacturers bought corn for October shipment, basis cost and freight, around 230 cents over the December futures contract on the Chicago Board of Trade. Japan bough November and December corn around 220 cents over the December contract. As the CBOT December corn futures contract is around $6.78 a bushel, the purchases are close to $353-$359/ton, C&F. Japanese importers purchase corn on premium basis over CBOT and lock in the final price at any day of their choice.
"Prices are still quite high, though they have eased from levels well above $400/ton reached last month," a Japanese importer said. He said many importers are still going slow on final pricing due to concerns over high costs. Most traders said almost half of the corn purchases for September shipment have yet to be priced. They said Japanese buyers aren't importing South American corn as it is at least 5% costlier than U.S. corn.
W.Australia wheat output to double, spreads narrow
MELBOURNE, July 26 (Reuters) - Wheat output in Western Australia, which produces high-quality milling grain, is likely to double to around 9 million tonnes this year following ideal crop weather, boosting prospects of wheat exports from the country in the coming marketing season.
This has narrowed the spread between the nation's west and east coast wheat to A$13 a tonne, down from A$28 last month and A$45 last year when a severe drought hit the region, traders told Reuters at a grains industry conference in Melbourne.
New demand for Vietnamese rice lifts prices -paper
HANOI, July 26 (Reuters) - Vietnam, the world's second-largest rice exporter after Thailand, is expected to sign deals for a combined 350,000 tonnes of the grain with Malaysia and East Timor between now and the end of the year, a state-run newspaper reported on Tuesday.
New demand has emerged from Chinese buyers and Philippine private firms which have come to Vietnam to seek rice, the Vietnam Economic Times newspaper said, lifting prices this week.
Thai mill buys Russian milling wheat in year's 1st deal
MELBOURNE, July 26 (Reuters) - A Thai flour mill has bought Russian wheat at $290 per tonne, including cost and freight, for shipment in August in one of this year's first reported deals for milling wheat since the country resumed exports.
More deals are likely as buyers eye cheaper cargoes from the Black Sea region, which is making aggressive offers, grains traders said on the sidelines of an industry meet in Melbourne.
Russia to keep agricultural subsidies after WTO entry
MICHURINSK, Russia, July 25 (Reuters) - President Dmitry Medvedev said on Monday that Russia will not withdraw state subsidies for farmers if it joins the WTO, which Moscow hopes for later this year after 18 years of accession talks.
Russia is the biggest economy outside the World Trade Organisation and Medvedev's comments underlined its robust stand on free trade rules.
Polish 2011 grain harvest seen down 1-5 pct-stats
WARSAW, Jul 26 (Reuters) - Poland's grain harvest is expected to fall by 1-5 percent this year to 24.3-25.2 million tonnes due to poor weather conditions in autumn and spring, stats office GUS said on Tuesday.
Intensive rains in autumn of last year delayed sowings and alternating periods of drought and rains in spring and summer 2011 also took their toll, the office said.
Thailand may release some of 2 mln tonnes rice stocks
BANGKOK, July 26 (Reuters) - The Thai state may release some of its rice stocks into the domestic market if it sees any shortage, a government official said on Tuesday, after speculators were reported to be hoarding grain, expecting prices to rise under an incoming government.
"We have around 2 million tonnes of milled rice in stocks, ready to be sold at any time if there is any tightness in the domestic market. However, we don't see any shortage at this moment," said Anukul Tamprasit, president of the Public Warehouse Organisation (PWO).
Indian Monsoon Seen Near Normal (Source: CME)
Monsoon rain in India this year is likely to be close to normal, and there is no change in the rainfall forecast of 95% of the 50-year average, the country's weather chief said, giving some cheer policymakers who are battling high inflation. "The distribution of rains is very good, and it is one of the best [monsoons] in recent years," Ajit Tyagi told reporters on the sidelines of a conference. He said that the monsoon rain is lagging only in the states of Gujarat, Haryana, Assam and some parts of Andhra Pradesh. Gujarat is the country's largest cotton and groundnut producer, while Assam is a key tea-growing region. Andhra Pradesh is one of India's leading rice producers.
Sugar edges higher on Brazil crop prospects
LONDON, July 26 (Reuters) - Sugar futures edged higher, underpinned by uncertainty over top producer Brazil's crop size, while coffee futures consolidated, as concern of a potential U.S. debt default weighed on investor sentiment. ICE Cocoa was steady, supported by the weaker dollar.
India is not in a hurry to allow additional sugar exports, Food Minister K.V. Thomas said on Tuesday, responding to a demand made by an industry body to allow half a million tonnes more for overseas sales to cash in on high global prices.
India to consider sugar exports after Sept
NEW DELHI, July 26 (Reuters) - India is not in a hurry to allow additional sugar exports, Food Minister K.V. Thomas said on Tuesday, responding to a demand made by an industry body to allow half a million tonnes more for overseas sales to cash in on high global prices.
On Monday, a leading industry body had sought permission from the government for an extra 500,000 tonnes of sugar exports in the current year.
Indian sugar body seeks govt nod for extra exports
NEW DELHI, July 25 (Reuters) - A top industry body in India has sought the government's nod for an additional 500,000 tonnes of sugar exports in the year to September, a demand if met could help ease global prices that are creeping up on supply worries from top exporter Brazil.
"We have written to the food ministry for permission of additional sugar exports as we've got surplus stocks and global prices are good," said Vinay Kumar, managing director of the National Federation of Cooperative Sugar Factories, a producers' body of 250 mills.
Illegal mining blamed for floods in Ghana cocoa region
ACCRA, July 25 (Reuters) - Ghana President John Atta Mills pledged on Monday to fight illegal mining which has been blamed for floods that swept the West African nation's cocoa growing Eastern region last week, killing at least five people.
More than 100,000 people were also displaced by the floodwater which destroyed houses, roads and farms, emergency officials said on Monday.
Oil Falls in New York After Industry Report Shows U.S. Stockpile Increase (Source: Bloomberg)
Oil fell in New York as investors bet that rising U.S. crude stockpiles indicated fuel demand may falter in the world’s biggest consumer of the commodity. Futures slipped as much as 0.5 percent today after the industry-funded American Petroleum Institute said inventories climbed 3.96 million barrels to 358.2 million last week. An Energy Department report today may show supplies slipped 2 million barrels, according to a Bloomberg News survey of analysts. It would be the eighth week of declines. “Oil prices weakened after the regular trading session in the wake of this week’s API report,” Peter Beutel, president of Cameron Hanover Inc., an energy adviser in New Canaan, Connecticut, said in an e-mailed note today. Crude stockpiles “showed an unexpected build,” he said.
Trader to pay $1 mln in metals futures case-US CFTC
WASHINGTON, July 25 (Reuters) - A former portfolio manager for Moore Capital Management agreed on Monday to pay the U.S. futures regulator $1 million to settle charges that he attempted to manipulate prices of palladium and platinum futures contracts on the New York Mercantile Exchange.
Christopher Louis Pia attempted to manipulate the settlement prices of palladium and platinum futures contracts from at least November 2007 until May 2008 while working for Moore Capital, the Commodity Futures Trading Commission said.
Kenya titanium cargoes to start 2013-Base Resources
NAIROBI, July 25 (Reuters) - Australia's Base Resources Ltd said on Monday it expected the first shipment of products from its Kenyan titanium mining project by mid-2013.
The project near the east Africa nation's port city of Mombasa is scheduled to begin in September after lengthy delays due to demonstrations by environmental groups, disputes with farmers over land compensation and talks with the government.
Sinosteel Zimasco sees 2012 ferrochrome output up 27 pct
HARARE, July 25 (Reuters) - Sinosteel Corp's Zimbabwean unit will increase its ferrochrome output by more than a quarter by 2012 following the repair and upgrade of one of its six furnaces, an official said on Monday.
Sinosteel, which owns 73 percent of Zimbabwe Mining and Smelting, or Zimasco, has announced plans to invest $300 million into the firm to build a new smelter and ramp up production in Zimbabwe's largest ferrochrome producer.
Great Western, China firm to build rare earth plant
TORONTO, July 25 (Reuters) - Great Western Minerals is teaming up with a Chinese rare earth producer to build a rare earth processing plant in South Africa, the company said on Monday.
The separation plant, a joint venture with Ganzhou Qiandong Rare Earth Group Ltd, will be built close to Great Western's Steenkampskraal mine in Western Cape province.
Unwrought aluminium stocks 1.474 mln T in Jun - IAI
LONDON, Jul 26 (Reuters) - Western world unwrought aluminium stocks dropped to 1.474 million tonnes in June compared with a revised 1.573 million in May, industry data showed on Tuesday.
Unwrought stocks stood at 1.190 million tonnes in June 2010, provisional data from International Aluminium Institute (IAI) figures showed.
U.S. Steel profit, revenue miss Street
NEW YORK, July 25 (Reuters) - U.S. Steel Corp posted lower-than-expected quarterly profit and revenue on Monday, although the company did rebound from three consecutive quarterly losses, helped in part by higher selling prices and stable supply costs.
John Surma, U.S. Steel's chief executive officer, warned that United States and Europe "continue to face an uneven economic recovery."
China aims to diversify iron ore import sources
SHANGHAI, July 26 (Reuters) - China aims to boost iron ore imports from its own overseas mines in the next decade and slash supplies from dominant supplier countries, Australia, India and Brazil and the three biggest mining firms, Brazil's Vale and Australia's Rio Tinto and BHP Billiton .
The deputy secretary general of the China Iron and Steel Association, Li Xinchuang, told China Daily on Tuesday that currently, only 10 percent of China's imports are sourced from Chinese-owned overseas mines.
Japan rolled copper output down on weak auto, chip demand
TOKYO, July 26 (Reuters) - Japan's output of rolled copper product fell 3.2 percent in June from May as strong demand from air-conditioner makers failed to offset weak demand in the auto and chip sectors, preliminary data showed on Tuesday.
The Japan Copper and Brass Association said rolled copper output totalled 70,019 tonnes in June on a seasonally adjusted basis, down 4.2 percent from a year earlier.
Copper concentrate supply to China seen up on Oyu Tolgoi
HONG KONG, July 26 (Reuters) - Chinese smelters expect supplies of copper concentrate to rise as early as late 2012, paving the way for higher charges, as neighbouring Mongolia's Oyu Tolgoi copper and gold mine starts to come onstream, industry sources said on Tuesday.
That may prompt Chinese smelters to raise term treatment and refining charges (TC/RCs) requirements for 2012 after they won a more than 50 percent on-year increase to $72 a tonne and 7.2 U.S. cents a pound for the first half of 2011 and $90 and 9 cents for the second half.
Copper Gains as Strike Enters Fifth Day at Escondida, World’s Biggest Mine (Source: Bloomberg)
Copper rose the most in more than two weeks on speculation that a strike at the world’s biggest mine may worsen a global supply shortage. A strike at BHP Billiton Ltd.’s Escondida mine entered a fifth day as Chilean labor authorities prepared to mediate talks between union and company officials. The stoppage has cost about 12,000 metric tons in lost output, said Roberto Arriagada, a union director. World consumption is set to exceed production by 377,000 tons this year, the International Copper Study Group has forecast. The strike “just adds to people’s preconceived idea that there is a tightness in supply,” Jaspar Crawley, a broker at Triland Metals Ltd., one of the 12 companies on the floor of the London Metal Exchange, said today in a telephone interview.
Xstrata copper output climbs in Q2, coal sees recovery
LONDON, July 26 (Reuters) - Miner Xstrata posted a 6 percent increase in copper output during the second quarter, broadly in line with forecasts, as volumes in Chile and Australia helped offset the impact of a weather-battered start to the year.
Xstrata, the fourth-largest global diversified miner, had reported a drop in copper output in the first quarter, when it was hit by severe weather conditions at its Collahuasi mine in Chile and across the southern hemisphere. But it said on Tuesday that mined copper production in the first half totalled 434,046 tonnes, broadly in line with a year ago.
METALS-Copper hits 1-week high on weak dollar, fund buys
LONDON, July 26 (Reuters) - Copper rallied to its highest in a week on Tuesday, lifted by a sagging dollar, fund buying and a strike at the world's biggest copper mine, which focused investors on supply.
LME copper rose 1.4 percent to $9,789.25 at 0945 GMT, up from a close of $9,655 a tonne on Monday.
The metal used in power and construction last week rallied to $9,873.50, its highest since mid-April.
PRECIOUS-Gold eases but support from U.S. debt talks firmkeeps investors jittery
LONDON, July 26 (Reuters) - Gold eased on Tuesday as investors cashed in some gains after the previous session's record high, but the political impasse in the United States over raising the debt ceiling kept prices firmly supported above $1,600 an ounce.
Spot gold edged down 0.3 percent to $1,609.79 by 0939 GMT. It hit a record $1,622.49 on Monday as U.S. President Barack Obama warned that failure to reach an agreement to avert default could cause a deep economic crisis and urged Republican and Democratic leaders to reach a compromise.
Gold Surges Toward Record as ‘Go-to Asset’ (Source: Bloomberg)
Gold approached an all-time high as investors sought to protect their wealth against the possibility of a U.S. default that may come as soon as next week amid a standoff over the country’s $14.3 trillion debt limit. Spot bullion gained as much as 0.3 percent to $1,623.38 an ounce, compared to the record $1,624.07 reached on July 25, and traded at $1,622.65 at 9:18 a.m. in Singapore. Futures climbed as much as 0.4 percent to $1,625.60 in New York. The House of Representatives is set to vote July 28 on a two-step plan backed by Speaker John Boehner that would raise the ceiling before an Aug. 2 deadline while paring the deficit, with the lawmakers’ planned voting delayed by a day. President Barack Obama has threatened a veto. The impasse sent the dollar to a record low against the Swiss Franc yesterday, while pushing the cost of insuring U.S. debt to a 17-month high.
Can Goldman, Morgan Stanley recover commodities moxie?
NEW YORK, July 25 (Reuters) - At the once-feared commodity trading arms of Goldman Sachs and Morgan Stanley , the pressure to do better in the second half of this year has never been more intense.
Long admired for their scale, savvy and unrivalled expertise that lifted them leagues above rivals, the two investment banking titans on Wall Street reported last week a significant drop in commodity revenue in the second quarter.
