GRAINS-Wheat ticks up after losses, market eyes crop-weather
SINGAPORE, April 5 (Reuters) - Chicago wheat edged higher as the market took a breather following an almost 3 percent fall in the last session, triggered by crop-friendly weather in the United States and Europe.
"Follow-up rain is expected for France over the Easter weekend and rains are also forecast for Germany and Britain," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia in Sydney in a report.
EU clears 140,600T U.S. wheat imports, exhausts quota
PARIS, April 5 (Reuters) - The European Union awarded licences to import 140,600 tonnes of U.S. wheat under its tariff-rate quota (TRQ) this week, thereby exhausting the annual quota for 572,000 tonnes, official data showed.
U.S. wheat has been very competitive against European origins in recent months with the price advantage currently pegged at around $30 a tonne.
Russia grain export from reserves seen 0.5-1 mln T
MOSCOW, April 4 (Reuters) - Russia may export between 0.5 million and 1 million tonnes of grain from state inventories over an unspecified period of time, and wheat will account for over half, according to a government source, two traders and two analysts.
State intervention sales, which started on Wednesday, are envisaged at 2 million tonnes of grain from the Agriculture Ministry's 7 million tonnes of reserves.
Old-crop corn futures finished well off their daily highs but with slight gains. New-crop futures ended high-range with gains of around 6 to 7 cents. Corn futures ended higher for the week. An early start to spring has many farmers itching to get in the fields, but a crop insurance limit on the earliest planting date has kept many out of the fields. (Source: CME)
US corn stocks seen dropping to 16-year low
April 5 (Reuters) - U.S. corn supplies are expected to fall to a fresh 16-year low before the fall harvest, said analysts polled by Reuters, signaling there will be razor-thin supplies this year that could stoke food inflation and hurt margins for food companies.
Analysts expect USDA next week to cut ending stocks by 10 percent from its March estimate due to increased demand for feed and ethanol in the wake of a severe drought reducing supplies in South America.
Corn Market Recap for 4/5/2012 (Source: CME)
May Corn finished up 1 1/2 at 658 1/4, 5 off the high and 3 1/2 up from the low. July Corn closed up 1 1/2 at 652 1/4. This was 3 3/4 up from the low and 5 1/4 off the high. May corn ranged higher today and in turn spent a lot of time in positive ground. Clearly the market got a boost from better than expected export sales data. In fact, weekly export sales for corn came in at 937,600 metric tonnes for the current marketing year and at 185,100 for the next marketing year for a total of 1,122,700 which was considerably higher than trade expectations. Cumulative corn sales stand at 78.9% of the USDA forecast for 2011/12 (current) marketing year versus a 5 year average of 74.6%. Sales of 409,000 metric tonnes are needed each week to reach the USDA forecast. Outside market forces started out as a potential drag but favorable US scheduled data and a recovery attempt in US equities shifted a possible risk-off day into a partial risk on day. Apparently the corn market wasn't overly impacted because of adverse currency market action today. New crop December corn continued to gain against old crop but a freeze threat in the upper Midwest is something that could offer up a surprise into the Monday opening. At least into the close today, the trade wasn't expressing significant concern toward the cold front due in Thursday night but that could make next weeks cold threat a little more important. May Rice finished up 0.14 at 15.045, equal to the high and 0.095 up from the low.
US farmers resist temptation to rush corn planting (Source: CME)
Many U.S. farmers are waiting for crop insurance coverage to kick in before getting too aggressive in planting corn early, resisting the temptation presented by record warm temperatures this spring, a top agronomist said on W edn esday. "Monday's numbers from USDA certainly showed 'some' early planting but the dam has not broken yet. The short-term weather forecast is favorable in terms of no expected heavy rains, but a cool off in temps may dampen some spirits," Robert Nielsen, a state extension corn specialist with Purdue University in Indiana, told Thomson Reuters online ags forum.
US corn stocks seen dropping to 16-year low (Source: CME)
U.S. corn supplies are expected to fall to a fresh 16-year low before the fall harvest, said analysts polled by Reuters, signaling there will be razor-thin supplies this year that could stoke food inflation and hurt margins for food companies. Analysts expect USDA next week to cut ending stocks by 10 percent from its March estimate due to increased demand for feed and ethanol in the wake of a severe drought reducing supplies in South America.
Wheat futures staged a choppy day of trade at all three exchanges, but market bears gained momentum into the close. Chicago wheat posted slight losses for the week. The winter wheat crop is off to a quick and favorable start. Recent state-by-state crop condition reports have shown improvement over year-ago. (Source: CME)
Wheat Market Recap Report (Source: CME)
May Wheat finished down 3/4 at 638 1/2, 11 1/2 off the high and 2 1/2 up from the low. July Wheat closed down 3 1/2 at 646 1/4. This was 1 1/4 up from the low and 12 3/4 off the high. May wheat opened higher and ended up spending a large amount of time in positive ground. Wheat might have garnered some spillover support from strength in rapeseed prices and perhaps some minor lift from noted gains in energy and metals prices. Outside market forces started out as a potential drag to wheat today but favorable US and Canadian scheduled data flows and a recovery attempt in US equities seemed to shift a possible risk-off day into a partial risk on day and that helped many physical commodity markets. Net weekly export sales for wheat came in at 408,300 metric tonnes for the current marketing year and 103,400 for the next marketing year for a total of 511,700. Cumulative wheat sales stand at 94.9% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 93.0%. Sales of 153,000 metric tonnes are needed each week to reach the USDA forecast. The sales were towards the upper end of trade expectations and may have contributed to the stronger opening. The market has traded either side of unchanged this morning and has remained within the lower 2/3rds of yesterday's range. A modest recovery in the stock market lends some outside market support, but the stronger dollar is a mitigating factor. Egypt bought 115,000 tonnes of US soft red winter wheat for May 21-31st shipment. Private exporters reported sales of 138,900 tonnes of mixed varieties of wheat for the next marketing year to unknown destinations, including 68,050 tonnes of hard red winter wheat, 40,000 tonnes of soft white, 28,450 tonnes of hard red spring wheat and 2,400 tonnes of durum. Tunisia is tendering to buy 75,000 tonnes of soft wheat and 25,000 tons of durum. 04/05/12 May Oats closed up 2 at 337. This was 2 up from the low and 3 off the high.
EU clears 140,600T U.S. wheat imports, exhausts quota (Source: CME)
The European Union awarded licences to import 140,600 tonnes of U.S. wheat under its tariff-rate quota (TRQ) this week, thereby exhausting the annual quota for 572,000 tonnes, official data showed. U.S. wheat has been very competitive against European origins in recent months with the price advantage currently pegged at around $30 a tonne.
Wheat ticks up after losses, market eyes crop-weather (Source: CME)
Chicago wheat edged higher as the market took a breather following an almost 3 percent fall in the last session, triggered by crop-friendly weather in the United States and Europe. "Follow-up rain is expected for France over the Easter weekend and rains are also forecast for Germany and Britain," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia in Sydney in a report.
Indonesian roasters seek Vietnam coffee on supply worry
SINGAPORE, April 5 (Reuters) - International trading houses have started offering higher-grade Vietnamese robusta to Indonesian roasters who are struggling to get beans from the local market despite the current harvest, dealers said on Thursday.
Indonesian robusta was offered at a hefty premium of more than $200 above London futures for prompt delivery.
Brazil cocoa arrivals buoyant as season ebbs
SAO PAULO, April 4 (Reuters) - Higher-than-usual cocoa deliveries to warehouses in Brazil over the past few weeks from local farms and imports are pushing arrivals close to last year's levels as the season draws to a close in April.
Arrivals of all producing regions from Brazil totaled 28,456 tonnes in the last week, up almost 88 percent compared with the 15,123 tonnes in the same period of the last season.
Cotton futures posted sharp losses for the week to bring the market near its March lows. Violation of these March lows in the nearby contracts could trigger sell stops. Traders returned their focus to the plentiful global stocks situation this week, which weighed on prices. Adding to bearish attitudes was this morning's Weekly Export Sales Report, which showed net sales reductions of 143,700 running bales due to cancellations by China and Brazil. (Source: CME)
Oil Rises for First Time in Three Days on Jobless Claims (Source: Bloomberg)
Oil gained for the first time in three days as claims for U.S. unemployment benefits dropped to a four-year low and equities pared losses, raising hopes that demand will grow in the world’s leading user of crude. Futures rose 1.8 percent, completing the first weekly gain since March 9, after the Labor Department said jobless claims fell 6,000 to 357,000 in the week ended March 31 and the Standard & Poor’s 500 Index rebounded from a 0.4 percent decline. Trading is closed tomorrow for Good Friday. “Crude is showing resilience and we have support from the jobs report,” said Tom Bentz, a director with BNP Paribas Prime Brokerage Inc. in New York. “Traders are not willing to be short over the long weekend.” Crude for May delivery gained $1.84 to settle at $103.31 a barrel on the New York Mercantile Exchange. Prices rose 29 cents this week. The price ranged from $101.37 to $103.40.
Brent oil for May settlement rose $1.09, or 0.9 percent, to $123.43 a barrel on the London-based ICE Futures Europe exchange. Brent’s premium to WTI narrowed 75 cents to $20.12 a barrel after widening for six days in a row.
Japan's Hokkaido Gas to get 1st LNG cargo delivery
TOKYO, April 5 (Reuters) - Japanese gas supplier Hokkaido Gas expects to take delivery of a first liquefied natural gas tanker at its new Ishikari LNG terminal on Oct. 7, ahead of the December start of the facility's commercial operations, the company said.
The cargo of LNG from Russia's Sakhalin would be supplied by Tokyo Gas under a term deal.
Oil trader Hall stays long, not worried about SPR
April 4 (Reuters) - Veteran oil trader Andy Hall said he is betting that a release of emergency oil stockpiles by consumer nations will not provide any lasting relief to high prices, with OPEC spare capacity reduced to a "wafer thin" margin by year-end.
Although his $5 billion Astenbeck Capital Management LLC fund trimmed its exposure to commodity markets in March after a run-up in prices earlier in the year, Hall remains confidently bullish and may add to his positions if prices fall much further, he said in a letter to investors this week.
Japan refiners deepen Iran crude import cuts
SINGAPORE/TOKYO April 4 (Reuters) - Japanese refiners will cut Iranian crude imports yet again in April as they shy away from renewing annual contracts, showing continued commitment to U.S.-led sanctions over Tehran's nuclear programme.
Japan, the world's third largest oil consumer, has strongly backed calls to cut Iranian oil imports and earlier reductions were hailed by its top business and military ally, the United States, as an example to other countries.
OIL- Brent rises above $123 on supply disruption fears
SINGAPORE, April 5 (Reuters) - Brent crude rose above $123 a barrel, after sharp falls in the previous session, lifted by growing concerns over Iranian supplies being disrupted due to Western sanctions.
"Oil markets are supported by supply issues and some short covering, because demand fundamentals are not that strong," said Ken Hasegawa, a commodities derivatives manager at Newedge brokerage in Tokyo.
JPMorgan Hedges Silver for Clients, Masters Says on CNBC (Source: Bloomberg)
JPMorgan Chase & Co. (JPM) mostly hedges silver for clients, and large speculative bets aren’t “part of our business model,” Blythe Masters, the bank’s head of global commodities, told CNBC. Market participants “don’t see all our activity,” and bloggers have “a misunderstanding of the nature of our business,” Masters said today in an interview on CNBC. There is “an underlying client position” involved in hedge or forward trades, she said on CNBC. A multiyear investigation into the possibility of unlawful acts in the silver market is continuing after regulators analyzed more than 100,000 documents, the U.S. Commodity Futures Trading Commission said in November. Silver futures for May delivery rose 2.2 percent to close at $31.73 an ounce today. The price has dropped 36 percent from a 31-year high of $49.845 on April 25, 2011.
JPMorgan, based in New York, and HSBC Holdings Plc were sued in October 2010 by investors, including Peter Laskaris, who alleged that starting in March 2008, the banks manipulated silver in futures and options, partly by placing so-called spoof trading orders. The banks reduced their collusive trading and their holdings in futures market after a government investigation began in 2008, according to the complaint by Laskaris.
Copper Advances as Signs of U.S. Growth Point to Higher Demand (Source: Bloomberg)
Copper climbed for the first time in three days as reports showing an improving labor market and rising consumer confidence added to signs of recovery in the U.S., the world’s second-biggest consumer of the metal. Claims for unemployment benefits fell last week to the lowest in four years, Labor Department figures showed today. The Bloomberg Consumer Comfort Index increased last week to the highest in four years as brighter job prospects and an advancing stock market bolstered Americans’ view of the economy. “The outlook for copper is quite constructive,” William O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey, said in a telephone interview. “The U.S. is doing well, and China’s economy may be better than people think.” Copper futures for May delivery rose 0.1 percent to settle at $3.7955 a pound at 1:20 p.m. on the Comex in New York. Yesterday, the metal slid the most since Dec. 14 after the Federal Reserve damped expectations for more economic stimulus.
A report tomorrow may show payrolls in the U.S. increased by more than 200,000 workers for a fourth month, based on the median estimate in a Bloomberg survey of economists.
Gold Traders Bearish for First Time in 2012: Commodities (Source: Bloomberg)
Gold traders are bearish for the first time this year after the Federal Reserve signaled it may refrain from more monetary stimulus and jewelers in India, the world’s biggest bullion market, shut to protest a new tax. Fifteen of 29 analysts surveyed by Bloomberg expect prices to decline next week and five were neutral, the highest proportion since Dec. 30. Imports by India may have plunged as much as 81 percent in March and could drop 40 percent in the second quarter, the Bombay Bullion Association said April 2. Indian jewelers, who sell more gold than Australian and U.S. mines produce in a year, were closed today for a 20th day.
Slumping Indian demand comes as prices already erased more than half of this year’s gains on mounting concern the Fed won’t buy more debt. Gold rose about 70 percent as the central bank bought $2.3 trillion of debt in two rounds of quantitative easing ending in June 2011. Policy makers indicated they won’t increase monetary accommodation unless the economy falters, according to minutes of their March 13 meeting released April 3. “Reduced prospects for quantitative easing, if you read that as a strengthening U.S. economy, then it’s bad for gold,” said Carole Ferguson, an analyst at Fairfax IS in London. “Gold has lost some of its safe-haven shine this year. The Indian jewelry market is still very important. If strikes are a longer- term thing it’s more of a worry.”
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