Corn (Source: CME)
US corn futures end lower as worries about South America's crop move to the background amid weak demand. Traders say significant Argentina crop damage has already been priced into the market, and heat damage at this point is more of a worry for soybeans. Speculative funds were heavy sellers of an estimated 13,000 contracts, as the market resumed a downtrend started after last Thursday's bearish USDA report. Many traders expect the market to drift lower until early spring, when US spring planting comes into focus. CBOT March corn ends down 10 1/2c to $5.93 1/2 a bushel, its lowest level in a month.
Wheat (Source: CME)
U.S. wheat futures end lower, falling sharply on pressure from corn and weak demand. Slumping corn, which has led wheat recently, weighed on prices. Traders add that demand remains poor, and is unlikely to improve soon thanks to an abundance of wheat globally. CBOT March wheat ends down 12 1/2c to $5.92 1/4 a bushel while KCBT wheat closes down 20c, or 3%, to $6.53. MGEX March spring wheat, underpinned by improved demand for higher-protein wheat, closes down 7 3/4c to $8.00 3/4.
Rice (Source: CME)
US rice futures end lower, retreating from recent gains on spillover pressure from other grains. Rice joined corn and wheat in heading lower as speculative funds were sellers amid weak demand for grains generally. Demand for rice in particular has been weak for months, and the USDA last week cut demand projections for both domestic use and exports. CBOT March rice ends down 22 1/2c to $14.58.
Corn rises for 2nd day, soy dips on LatAm rain f'cast
SINGAPORE, Jan 18 (Reuters) - U.S. corn rose for a second straight session, with support from improved risk sentiment and tight global supplies, while soy slid on forecasts of rain in parts of the drought-hit South American grain belt.
"The weather is looking a little bit wetter over the next five days, especially over some of the most stressed areas in Argentina and southern Brazil," said Victor Thianpiriya, an agricultural commodity strategist at ANZ.
India allows rice exports beyond two million tonnes-govt
NEW DELHI, Jan 17 (Reuters) - India has allowed overseas sale of common rice beyond two million tonnes, officials said on Tuesday, removing a previous cap announced by Food Minister K. V. Thomas in September 2011.
"Our stocks are comfortable on a bumper harvest. So, we can continue with exports of rice and wheat," Thomas said on Tuesday. Ministry officials confirmed this removed the limit of two million tonnes.
Argentina's drought to keep punishing corn, soy
BUENOS AIRES, Jan 17 (Reuters) - Argentine corn and soy farms will suffer from hot weather and scant rains for the rest of this week, forecasters said on Tuesday, increasing worries that crop losses will eat into global supplies.
Argentina, which supplies about 20 percent of the world's corn exports and 12 percent of its soybeans, has been pounded for weeks by an unrelenting Southern Hemisphere summer sun.
Tajikistan plans bigger grain harvest in 2012
DUSHANBE, Jan 17 (Reuters) - Tajikistan plans to increase grain production by about one-third this year as farmers revert to growing wheat after a switch to other crops last year resulted in the Central Asian country's biggest cotton harvest since 2007.
Deputy Agriculture Minister Sidzhouddin Isroilov said on Tuesday that Tajikistan, which aims to produce all the grain it consumes by 2015, would grow around 1.5 million tonnes in 2012.
UK wheat exports gather pace during November
LONDON, Jan 17 (Reuters) - UK wheat exports picked up in November as customs data confirmed the sale of a cargo to the United States, although shipments remained below year-earlier levels.
Shipments during November totalled 442,797 tonnes, up from the prior month's 272,968 tonnes and the highest monthly total so far in the 2011/12 season, which started on July 1, 2011.
S.Africa's weekly maize exports jump
JOHANNESBURG, Jan 17 (Reuters) - South Africa exported 38,486 tonnes of white maize last week compared with 7,954 tonnes in the previous week, the South African Grain Information Service (SAGIS) said on Tuesday.
Exports of yellow maize were recorded at 3,045 tonnes, compared with 1,748 tonnes in the week before, SAGIS said on its website www.sagis.org.za.
Canada Pulse, Special Crop Production To Rise In 2012-13: Ag Canada (Source: CME)
Production of Canada's major pulse and special crops is expected to rise by 10% in 2012/13 (August/July), with acres on all crops, except lentils, also increasing, according to the first new crop supply/demand projections from Agriculture and Agri-Food Canada's Market Analysis Division, released late Jan. 17. Production of the major pulse and special crops in Canada was estimated at 4.560 million tons in 2012/13, up from 4.130 million tons in 2011/12. The production compares with the 2010/11 level of 5.755 million tons. Total planted area was forecast to rise by 9%, with the largest increase in dry peas where seeded area is forecast at 2.9 million acres, from 2.3 million. Total area seeded to pulse and special crops was forecast at 6.3 million in 2012/13, from 5.8 million the previous year. The seven major specialty and pulse crops include: dry peas, lentils, dry beans, chick peas, mustard seed, canary seed and sunflower seed.
Exports of Canada's special and pulse crops for 2012/13 were forecast at 3.925 million tons, which would be up slightly from the 3.815 million tons expected in 2011/12, but still down from 4.791 million tons in 2010/11. Domestic usage in 2012/13 was expected to come in at 753,000 tons, down from the 2011/12 estimate of 793,000 tons and the 2010/11 level of 766,000 tons. Ending stocks of the seven major special and pulse crops for 2012/13 were pegged by Agriculture Canada at 1.230 million tons, which compares with a forecast of 1.200 million tons for 2011/12 and the 2010/11 carryout of 1.530 million tons. Jan. 17 estimates for Canadian 2012/13 (August/July), 2011/12 and 2010/11 pulse and special crop supply and demand.
Iraq Tightens Rice Import Norms; Asian Origins May Not Qualify (Source: CME)
Iraq has raised the quality standards for rice import tenders, making it very difficult for Asian origins to qualify, trading executives said. In its latest tender, which opens later Wednesday, Iraq has increased the minimum length of grain and reduced the stipulated amount of broken and chalky grain, said a Singapore-based trading executive who offers rice at tenders issued by Iraq's state-run grain board. The minimum length of the grain has been revised to 6.8 millimeters from 6.0 millimeters. "With stipulation for such long grain, we can only offer the premium basmati grades and not ordinary rice," an exporter in New Delhi said.
Iraq is also seeking cargoes with a maximum broken content of 3% instead of the usual 5% and has reduced the permissible amount of chalky or inferior grain to 2% from 4%. Even in Thailand and Vietnam, two of the top exporters, chalky grain content is usually more than 5%. The latest quality norms are aimed at eliminating Asian origins and there is a strong possibility that only rice from the U.S. and South America will qualify, an executive with a global commodities trading company said. Since end-September, Iraq has purchased around 300,000 metric tons from India and Pakistan in a series of tenders, subject to pre-shipment clearance of samples.
However, it rejected most of the samples on the grounds that the cooked grain wasn't in line with local tastes. Iraq is one of the top importers, buying around 1.3 million tons annually, mostly from the Americas and Southeast Asia. In recent months, India and Pakistan have tried to make inroads into the market with competitive prices. Indian and Pakistani grades are $100-$150/ton cheaper than Thailand and Uruguay. "Indian and Pakistani rice was the cheapest offered in the tenders, so Iraq awarded the contracts but subsequently rejected most samples. And to avoid a repeat of such a situation, it has altered the quality norms," an exporter in Karachi said.
He said Iraq wants to discourage trading companies from offering rice whose taste is unacceptable, even if it is cheaper. Iraqi grain board officials couldn't be immediately reached for comment.
Legal Aftermath Of Cotton's Wild Ride Continues Into 2012 (Source: CME)
Legal trouble sparked by wild swings in the price of cotton during 2011 is bleeding over into this year. The International Cotton Association, which sets the rules for most of the world's cotton trade, said that it has received 16 requests for arbitration so far this year. Between 2000 and 2010, requests averaged 45 annually. Last March, cotton prices on ICE Futures U.S. surged to a record high of $2.27 a pound but the prices nearly extinguished global demand for the fiber and drove futures prices down 37% in 2011. Many mills cancelled orders for cotton, sparking a wave of cancellations for fiber that had been purchased at the higher prices for delivery later in the year. The effects reverberated throughout the industry, crushing margins at apparel companies, commodity firms and textile mills. The Liverpool-based ICA received a record 242 requests in 2011. Cotton mills and merchants prefer ICA arbitration over courts in each country because the process is often faster, more uniform and less expensive.
Last week, the ICA's president, Antonio Esteve, said a volatile market could severely damage the industry. "It is easy to succumb to the attraction of short-term gains, but history shows that this will create irreparable damage that will affect the long-term economic sustainability of the cotton supply chain," he said in a statement. The ICA said it has developed a training course for spinners and cotton brokers to promote "responsible contracting." Cotton for March delivery on ICE Futures U.S. was recently trading at 97.70c a pound, down 0.5% on the day.
Sugar Traders Wager That Biggest Glut in Five Years Is Ending: Commodities (Source: Bloomberg)
Traders are betting that the biggest sugar glut since 2007 will shrink in the next harvest, reversing expectations from six months ago and ending the largest decline in prices in a decade. Raw sugar for March 2013 is trading at a premium of 3.9 percent to the July 2012 contract on ICE Futures U.S. in New York, compared with a 6.6 percent discount six months ago. The switch is reflecting a change in outlook even before forecasts for the next season from the International Sugar Organization or U.S. Department of Agriculture. Prices may rise as much as 12 percent to 27 cents a pound by Dec. 31, according to the median of 21 analyst and trader estimates compiled by Bloomberg.
Futures fell 27 percent last year, the most since 2001, as a glut emerged after three consecutive annual shortages. Traders are now focused on the prospect for crops in India and Brazil, which account for 38 percent of output. The predicted rally may curb a drop in global food prices tracked by the United Nations that drove costs to a 14-month low in December.
Nicaragua coffee exports fall by near 50 pct in Dec
MANAGUA, Jan 17 (Reuters) - Coffee exports from Nicaragua dropped to 52,120 60-kg bags in December, 45.7 percent less than was exported in the same month last year, the country's export board said on Tuesday.
The harvesting season in Central America and Mexico, which together produce more than one-fifth of the world's arabica coffee, begins in October and comes to a close in September.
Ivorian cocoa exports hit 444,174 T by Jan. 8 -BCC
ABIDJAN, Jan 17 (Reuters) - Exports of cocoa beans and cocoa products from Ivory Coast hit 444,174 tonnes by Jan. 8 since the start of the season in October, down about 3 percent from a year earlier, data from industry regulator BCC obtained by Reuters showed on Tuesday.
During the same period of the 2010-11 season, the top cocoa grower nation exported 458,889 tonnes of cocoa beans and products, according to BCC figures.
Indonesia coffee exports up 14 pct in 2012 -industry
JAKARTA, Jan 17 (Reuters) - Coffee exports from Indonesia, the world's third-largest producer, are likely to climb 14.3 percent to 400,000 tonnes this year, the Indonesia Coffee Exporters and Industries Association (AEKI) said on Tuesday.
"It is difficult to predict our coffee exports in 2012 because weather conditions now have a big impact on the coffee harvest and output," said Suyanto Husein, AEKI chairman. "We expect we could export 400,000 tonnes of coffee in 2012."
Euro Coal-S.Africa prices rise $3/T
LONDON, Jan 17 (Reuters) - Prompt South African coal prices rallied by around $3 a tonne on Tuesday as players covered short positions, but this strength was unlikely to last unless China resumes heavy buying in February, traders and utilities said.
Chinese importers have been out of the market for the past few weeks and are not expected to return until after the New Year holidays, but a few have been quietly re-selling cargoes since last week.
Beyond oil a gloomier 2012 economy seen in coal, freight
LONDON, Jan 17 (Reuters) - Oil prices may still be riding high but for a more accurate picture of the state of the global economy in 2012, look at recent developments in the non-oil energy, freight and metals sectors.
Coal and power benchmark futures prices have fallen to their lowest levels since late 2010, while the Baltic Dry Freight Index, a barometer of demand for shipping, is languishing at a three-year low.
Brent rises above $112 on weak dollar, demand growth hopes
SINGAPORE, Jan 18 (Reuters) - Brent crude rose above $112 as the dollar weakened and a slew of positive economic indicators,
from China to the United States, eased demand concerns triggered by the debt crisis in Europe.
"Oil markets are still rallying on positive data, particularly from China, and expectations of more easing by the country to ensure steady growth," said Natalie Robertson, an analyst at ANZ. "Eyes are also on Europe as talks of a Greek default return. That's a factor weighing on markets."
Oil Moves Lower as U.S. Rejects Permit for Keystone XL Pipeline (Source: Bloomberg)
Oil declined in New York as the Obama administration denied a permit for TransCanada Corp. (TRP)’s Keystone XL pipeline, which would have carried crude to U.S. Gulf Coast refineries from Alberta’s oil sands. West Texas Intermediate oil, the U.S. benchmark, retreated after two people familiar with the matter said the rejection was imminent. The announcement came after the close of floor trading. Oil climbed earlier after the Federal Reserve figures showed that U.S. industrial output rose 0.4 percent in December. “Inventories are going to increase because of this,” said Stephen Schork, president of the Schork Group in Villanova, Pennsylvania. “There was a bet that WTI would move closer to the world price this year” and the Keystone rejection will end that prospect, he said. Crude oil for February delivery fell 12 cents to settle at $100.59 a barrel on the New York Mercantile Exchange. It dropped to $99.84 from $100.98 on the Keystone news before rebounding.
Iron Ore-Spot slips as physical buying thins
SINGAPORE, Jan 18 (Reuters) - Spot iron ore prices edged lower in thin trading as buyers in top importer China became even more scarce ahead of next week's Lunar New Year holiday.
Offer prices for imported ore in China were steady on Wednesday, although index reference prices which are based on actual transactions fell for a second day on Tuesday.
Copper Rises to 17-Week High on Bullish U.S. Manufacturing, Housing Data (Source: Bloomberg)
Copper futures rose to a 17-week high as reports showing gains in U.S. manufacturing and homebuilder sentiment bolstered prospects for metal demand. Factory output rebounded in December, climbing the most in a year as production of business equipment, automobiles and construction materials rose, figures from the Federal Reserve showed today. A National Association of Home Builders/Wells Fargo gauge showed homebuilder confidence rose in January to the highest in more than four years. Stocks rose, driving the Standard & Poor’s 500 Index to a five-month high. “The U.S. economic data is supporting equities, and copper is moving with that,” Adam Klopfenstein, a market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “Any time you see positive news out of the housing sector, that’s bullish for copper.”
Gold Futures Rally as Slumping Dollar May Boost Demand for Precious Metal (Source: Bloomberg)
Gold futures climbed to the highest settlement price in five weeks as a slumping dollar boosted the appeal of the precious metal as an alternative asset. The greenback declined for the second day against a basket of major currencies after U.S. factory output in December climbed the most in a year as production of business equipment, automobiles and construction materials rose, figures from the Federal Reserve showed today. The International Monetary Fund proposed boosting its resources by as much as $500 billion to safeguard the global economy. “The dollar’s weakness is supporting gold,” David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview.
Baltic index at near 3-year low, seen pressured
LONDON, Jan 17 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell to its lowest in nearly three years on Tuesday as weak cargo demand, worsening economic prospects and a vessel glut weighed on sentiment.
The shipping sector in coming months is expected to face a supply glut and economic gloom, including concerns over the outlook for Chinese demand for raw materials, which will pressure earnings.
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