CME readies round-the-clock grains trade-sources
CHICAGO, April 30 (Reuters) - CME Group Inc will extend trading hours for its hallmark grain contracts, two sources close to the matter said on Monday, as the Chicago exchange moves to defend its turf against rival ICE's bid for nearly round-the-clock transactions.
The board of the CME, which has a stranglehold on grains trading through the Chicago Board of Trade, the world's largest grain exchange that it acquired in 2007, has agreed to extend trading hours, but has not decided on how many hours to add to its trading day or when to implement them, the sources said.
China demand sets crop markets up for a fall
--Gavin Maguire is a Reuters market analyst. The views expressed are his own.--
CHICAGO, April 30 (Reuters) - China's insatiable appetite for all things crop-related caused a fresh surge in the price of corn Friday, and has been instrumental in steering soybean prices to their highest levels in nearly four years in recent weeks. Traders expect that tight stocks and soaring domestic crop prices will keep Chinese import demand - and crop prices - strong in the months ahead.
But with the delivered price of soybeans in China having just scaled its highest level since 2008 amid emerging economic weakness there, and pork production in China potentially on the verge of declining due to steep price losses and disease outbreaks among piglets, it is possible this latest charge higher in crop prices has set those markets up for a fall.
GRAINS-US corn dips from 3-week top on planting progress
SINGAPORE, May 1 (Reuters) - Chicago corn slid from a three-week top as higher pace of planting in the United States lifted new-crop supply prospects, while soybeans hovered around last week's near four-year peak on strong demand.
"I think we will see corn sell off further tonight as the market's expectation on planting was much lower," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne. "Corn is getting in quickly which means there are less chances for soy to buy back any acres from corn."
Dryness to slow Australia wheat planting, lift canola
SYDNEY/SINGAPORE, May 1 (Reuters) - Australia's grain belt is forecast to stay dry in the coming weeks as farmers gear up to plant the 2012/13 crop, threatening wheat yields after two straight years of record high production.
A dry start to the grain planting season in Australia, which is on track to become the world's second-largest wheat exporter this year, could support global prices after excessive rain in the U.S. and dryness in parts of the Black Sea region underpinned the market.
Corn planting tops expectations, Iowa 50 pct done
CHICAGO, April 30 (Reuters) - U.S. corn planting advanced more than expected last week despite cool weather and rain as a huge seeding effort in top producer Iowa propelled sowing of the total crop past the halfway point, a U.S. Agriculture Department report showed on Monday.
The USDA's weekly crop progress and conditions report revealed that 53 percent of the U.S. corn crop was planted as of April 29, topping the average forecast of 43 percent from a Reuters poll of 18 analysts. A week earlier, seedings were 28 percent.
Heavy rains hit U.S. Plains wheat fields, floods a concern
April 30 (Reuters) - Heavy rains over the weekend in key growing areas of the U.S. Plains may have damaged some of the new wheat crop, leaving growers to hope for sunshine to help the crop dry out.
Flooding was noted Monday in parts of north-central Oklahoma and southeast Kansas after more than 5 inches of rain fell Saturday and Sunday, with most of pouring down on Sunday, meteorologists said.
Zambia maize output drops about 6 pct - minister
LUSAKA, April 30 (Reuters) - Zambia's maize output declined by about 6 percent to 2.8 million tonnes in the 2011/2012 season from 3 million tonnes last year, the agriculture minister said on Monday.
Emmanuel Chenda also said at a media briefing that Zambia still had a huge maize surplus because of carry-over stocks from last year and is planning to export some of the excess. "When the carry-over stocks of 770,931 tonnes from the last season are added to the current production, the country ends up with a maize surplus of 1,035,333," Chenda said.
Market Recap: Wheat Futures (Source: CME)
Wheat futures ended with most contracts seeing losses of roughly 4 to 12 cents. Chicago led losses, while Kansas City saw the lightest pressure. Most contracts finished low range. Traders in the wheat pit had yesterday’s Crop Progress and Condition Report to digest today. It showed spring wheat planting progress well ahead of normal at 74% complete as well as very slight improvement in the winter wheat crop.
Wheat Market Recap Report (Source: CME)
July Wheat finished down 11 1/2 at 643, 12 1/2 off the high and 2 up from the low. December Wheat closed down 8 1/4 at 679 3/4. This was 2 3/4 up from the low and 9 1/4 off the high. July wheat saw late aggressive selling from speculators to drive the market sharply lower on the day to push to new lows for the session into the close. The excellent weather forecast for US producers, less concerns for the crops in Europe and more rain in the forecast for the southern plains were key factors to help pressure. Weakness in the other grains, improving crop conditions and a bearish weather outlook has helped pressure the market to moderately lower on the day into the mid-session. Warm and wet weather for much of the plains and Midwest is seen as good for crop development at this time of the year. Private exporters reported to the USDA the sale of 110,000 tonnes of US hard red winter wheat to Saudi Arabia. This was their first US purchase in eight months. There were 48 deliveries against the May contract. Spring wheat plantings are 74% complete vs. a 5-year average of 32%. July Oats closed down 1/4 at 345 1/4. This was 3 1/2 up from the low and 3/4 off the high.
Healthy Kansas wheat crop on track for early harvest
CHICAGO, April 30 (Reuters) - Kansas farmer Jerry McReynolds' wheat fields have developed a full month early, which has him optimistic for a harvest that should yield better than last year's drought-reduced crop.
Many farmers in Kansas and across southern U.S. Plains states of Texas and Oklahoma seeded their crop at the time of a devastating drought with little hope of a good crop but timely snow and rain brought the wheat back from the brink.
Market Recap: Corn Futures (Source: CME)
May corn futures briefly traded firmer this afternoon, but closed 1/2 cent lower, with the July contract ending 5 1/4 cents and lower September corn down 10 1/2 cents. New-crop futures were under pressure through the day, ending mostly around 4 cents lower. Pressure on new-crop futures was tied to yesterday's stronger-than-expected planting progress report, which showed planting 53% complete -- around 10 percentage points above expectations.
Corn Market Recap for 5/1/2012(Source: CME)
July Corn finished down 5 1/4 at 629, 5 1/4 off the high and 4 up from the low. December Corn closed down 4 1/2 at 538 3/4. This was 5 1/2 up from the low and 2 3/4 off the high. July corn was trading near the highs of the day-session with just ten minutes left in the session before breaking 8 cents rather quickly and closing 5 1/4 lower on the day. A faster than expected start to the planting season and near ideal weather outlook ahead helped to drive the market sharply lower into the mid-session. While the wet forecast may slow plantings, traders view the rain events over the next 10 days as beneficial for a fast start to the growing season for the corn already coming up. The weekly planting report showed that 53% of the crop is planted which is 10% above trade expectations and up from 28% last week and 12% last year. The 10 year average for this time of year is 35%. Iowa is now 50% complete from 9% last week. Illinois is 79% planted and 34% emerged to push emergence to 15% nationwide from 6% on average. A lack of producer selling plus a lack of deliveries continues to provide some underlying support to the market. Given the cash basis levels, end users who need corn are considering ownership of May receipts as an alternative to buying in the cash market and this has helped to support short-covering strength in May and July corn in recent days. Funds were noted sellers late in the day to help pressure. July Rice finished down 0.11 at 15.02, 0.1 off the high and 0.07 up from the low.
SOFTS-Cocoa consolidates after selloff, sugar falls
LONDON, May 1 (Reuters) - Cocoa futures on ICE consolidated in early trading after a selloff late on Monday, while raw sugar eased to touch a fresh 11-month low, pressured by expectations of a big global supply surplus of the sweetener. Cocoa futures were near unchanged, steadying after crumbling in a wave of month-end technical sales on Monday.
Indonesia's April Sumatra coffee bean exports fall 57 pct
BANDAR LAMPUNG, May 1 (Reuters) - Robusta coffee bean exports from Indonesia's main growing area in Sumatra fell 57 percent in April from a year earlier, as falling prices and dwindling stocks caused many producers to hold onto supplies.
Indonesia, the world's third-largest coffee producer after Brazil and Vietnam, shipped 10,096.7 tonnes of robusta in April, although shipments doubled from March as some farmers began early harvesting.
Australia cotton crop seen at record 4.4-4.5 mln bales-industry
SYDNEY, May 1 (Reuters) - Australia, the world's No.3 cotton exporter, will harvest a record 4.4-4.5 million bales this season thanks to good growing conditions and increased acreage encouraged by firm global prices, industry body Cotton Australia said on Tuesday.
"As an industry, we are about 40 percent complete with picking. We think the size of the crop is going to be around 4.4-4.5 million bales, breaking last year's record of 4.1 million bales," Adam Kay, chief executive officer of Cotton Australia said.
Indonesia Sulawesi cocoa bean exports soar in April
JAKARTA, May 1 (Reuters) - Cocoa bean exports from Indonesia's main growing island more than quadrupled in April as producers shipped more beans to take advantage of lower export taxes and domestic grinding demand eased.
Cocoa exports from Sulawesi grew to 7,912.02 tonnes in April from 1,570 tonnes a year earlier, Indonesia Cocoa Association (Askindo) data showed on Tuesday. March exports were at 3,505.66 tonnes.
Brazil coffee notches up another overly-dry month
BRASILIA, April 30 (Reuters) - Brazil's key coffee areas suffered another dry month in important areas in April, data from forecaster Somar showed on Monday, dryness that is likely to limit the potential for beans to swell out in the final weeks before the harvest begins.
Rainfall in top coffee state Minas Gerais, which grows about half the coffee in the world's top producer, was 13 to 39 percent less than usual, Somar data showed, after three prior months of below average rains in southwestern parts of the state.
Mexico 12/13 cotton output seen down 17 pct-attache
April 30 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Mexico:
"The 2012/13 total Mexican cotton production is forecast to decrease approximately 17 percent due to an expected decrease in planted area resulting from continued volatility in international cotton prices and a contraction in domestic consumption. Total domestic cotton consumption in MY 2012/13 is forecast to decrease to 2,209,000 bales (each bale weighs 480 pounds) - down approximately 10 percent compared to the previous years' revised estimate. This decrease is expected to be driven by a big jump in imports from China as protective duties were recently eliminated."
Venezuela 2012 sugar output seen up slightly-attache
April 30 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Venezuela:
"The Venezuelan sugar industry foresees domestic production only slightly increasing in 2012, constrained by low profitability and the absence of government incentives to support cane output. Total imports are expected to be about 800,000 tonnes. The government recently increased the regulated consumer price to Bs. 6.11 per kilogram, an amount that may cover production costs but not large enough to stimulate further investment or expansion."
Ivory Coast rains brighten cocoa mid-crop
ABIDJAN, April 30 (Reuters) - Rainfall last week across most of Ivory Coast's cocoa-growing regions has improved the outlook for the April-to-September cocoa mid-crop, with abundant volumes expected from June, farmers and analysts said on Monday.
Buyers and exporters have complained of low quantities and poor quality beans in recent weeks due to a dry spell from November 2011 to March 2012. Marketing of the mid-crop in the world's top cocoa producer usually begins in early April but is running late.
Oil Trades Near Five-Week High on U.S. Manufacturing (Source: Bloomberg)
Oil traded near the highest close in five weeks after U.S. manufacturing increased at the fastest pace in 10 months, signaling that economic growth will accelerate in the world’s biggest crude consumer. Futures were little changed in New York after climbing 1.2 percent yesterday. The Institute for Supply Management’s factory index last month exceeded the most optimistic forecast in a Bloomberg News survey and rose to the highest reading since June. U.S. oil supplies gained 2.04 million barrels last week, industry data showed after the settlement. The Energy Department today may say they climbed 2.5 million barrels. “There is a chance that we’ll push on to new highs from here based on an improving demand outlook,” Ric Spooner, a chief market analyst at CMC Markets in Sydney, said by telephone today. “We’ve seen a bit of a consistent build with inventories. Markets are tending to look beyond that.”
Oil for June delivery was at $105.86 a barrel, down 30 cents, on the New York Mercantile Exchange at 10:26 a.m. Sydney time. The contract yesterday advanced $1.29 to $106.16, the highest close since March 27. Front-month prices are 7.1 percent higher this year. Brent oil for June settlement was at $119.62 a barrel, down 4 cents, on the London-based ICE Futures Europe exchange. The European benchmark contract’s premium to West Texas Intermediate was at $13.76, from $13.31 yesterday, the least since Jan. 31.
Hedgers' net short position vanishes in US oil
--John Kemp is a Reuters market analyst. The views expressed are his own--
LONDON, April 30 (Reuters) - Oil hedgers held the smallest net short position in WTI-linked futures and options for at least six years in the week ended April 24, according to commitments of traders data published by the U.S. Commodity Futures Trading Commission (CFTC).
This physical hedgers category, which the CFTC identifies as "producers, merchants, processors and users" (who use futures predominantly to manage or hedge risks), typically runs an overall short position in U.S. crude futures and options , according to CFTC records.
OIL-Oil holds above $119; China offsets U.S., Europe
LONDON, May 1 (Reuters) - Oil held above $119 a barrel on Tuesday as economic expansion in China helped counter a sluggish U.S. economy and bubbling euro zone debt crisis that could depress demand for fuel.
"China is still in an expansionary phase and we saw a slight tick-up on the month," said Ben Le Brun, a Sydney-based market analyst at OptionXpress. "That will offset that negativity we saw filtered through from Europe last night."
Colder weather boosts UK prompt gas prices
LONDON, May 1 (Reuters) - British prompt gas prices rose on Tuesday morning as the market was more than 6 million cubic metres (mcm) undersupplied due to cool and rainy weather, with temperatures forecast to drop further.
Gas for day-ahead delivery was up 1.10 pence a therm to 62.10 pence at 0845 GMT and within-day gas was trading around 61.90 pence per therm, up 1.40 pence.
India's exports fall for the first time since 2009
NEW DELHI, May 1 (Reuters) - India's exports in March fell for the first time since the 2009 global financial crisis as demand weakened in the United States and Europe, further clouding the outlook for the country's balance of payments.
Exports fell 5.7 percent to $28.7 billion from the same period a year earlier, continuing a sharp slowdown in shipments in recent months that, combined with high imports of oil and gold, has sparked concern over the country's swelling trade deficit.
Gold Seen Advancing on Central Banks Stimulus Speculation (Source: Bloomberg)
Gold fell for a second straight day as signs of stronger U.S. industrial growth boosted prospects for the economy and eroded the appeal of the precious metal as a haven. The Standard & Poor’s 500 Index of equities rose as much as 1.2 percent after the Institute for Supply Management’s factory index rose to 54.8 in April from 53.4 in March. Economists had forecast a reading of 53, according to the median estimate in a Bloomberg survey. The precious metal has gained 6.1 percent this year as Europe’s intensifying debt crisis threatened global growth. “The ISM numbers gave investors a good reason to jump back into equities,” Adam Klopfenstein, a market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “People are favoring equities over gold.” Gold futures for June delivery slid 0.1 percent to settle at $1,662.40 an ounce at 1:49 p.m. on the Comex in New York. Prices earlier reached $1,672.30, the highest since April 13.
Asian markets including Hong Kong, South Korea, China, India and Singapore are closed for public holidays. Most western European markets, including Germany, France and Spain, are closed for the May Day holiday.
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