Market Recap: Wheat Futures (Source: CME)
Wheat futures were the downside leader in the grain markets today, ending 20-plus cents lower at all three exchanges. Futures closed near session lows. Strength in the U.S. dollar index weighed on wheat futures, with investors' concerns heightened about the euro-zone slipping deeper into recession due to disappointing manufacturing data.
Wheat Market Recap Report (Source: CME)
July Wheat finished down 28 1/2 at 614 1/2, 27 1/4 off the high and 2 3/4 up from the low. December Wheat closed down 26 at 653 3/4. This was 2 1/2 up from the low and 24 off the high. July wheat opened slightly lower and closed sharply lower on the day with aggressive fund selling noted late in the day. The market experienced the lowest close since September 14th of 2009. Traders see very high yield potential for the winter wheat crop and the weather outlook suggests improving crop conditions ahead. A strong US dollar and weakness in energy, metal and equity markets added to the bearish tone. Crop tour participants in Kansas see record yield potential and the spring wheat crop is off to an excellent start. July KC wheat took out the April lows to move to a new low for the move. Minneapolis July wheat fell sharply and pushed to the lowest level since November 26th of 2010. Iran bought 60,000 tonnes of wheat from Australia and Lebanon is tendering for 50,000 tonnes of milling wheat. July Oats closed down 8 at 337 1/4. This was 1/2 up from the low and 9 1/4 off the high.
Record yield potential forecast on Kansas wheat tour
COLBY, Kansas, May 1 (Reuters) - Wheat yields in northern and central Kansas showed potential for record yields after a mild winter pushed the crops out of dormancy early, which should bring forward the harvest by as much as three weeks, crop scouts on an annual tour found on Tuesday.
But the areas scouted on the first of three days of the tour are not in the biggest production regions in Kansas, the top wheat growing state, and scouts expect to see signs of drought and crop stress when the tour turns into southern and western Kansas.
U.S. wheat sale to Saudi Arabia first in 8 months
By Thomson Reuters - Wed 02 May 2012 09:34:12 CT
The U.S. government on Tuesday confirmed the sale of 110,000 tonnes of hard red winter wheat to Saudi Arabia, its first U.S. wheat purchase in eight months. The sale was part of a 440,000-tonne purchase announced on Sunday by the kingdom's Grain Silos & Flour Mills Organization from numerous origins for shipment from July to September.
Market Recap: Corn Futures (Source: CME)
May and July corn futures ended 17 1/2 cents lower, the September contract was 11 cents lower and new-crop contracts were around 7 cents lower. Corn futures closed low-range, but off session lows. Funds were active sellers today, dumping an estimated 18,000 contracts (90 million bu.) of corn. Corn futures were pressured throughout the day by a combination of corrective trade, strong planting progress, favorable weather and outside markets.
Corn Market Recap for 5/2/2012 (Source: CME)
July Corn finished down 17 1/2 at 611 1/2, 17 1/2 off the high and 1 1/2 up from the low. December Corn closed down 7 3/4 at 531. This was 2 3/4 up from the low and 9 off the high. July corn closed sharply lower on the session as fund traders selling intensified late in the day. A bearish weather outlook, continued talk of higher yield potential for the new season and a sharp set-back in wheat were all factors to spark long liquidation selling in corn again today. Once again, traders are indicating that US corn is expensive to wheat, Argentina corn and Brazil corn. In addition, there is talk that the Brazil corn crop could be higher than expected for next week's USDA update. Extra corn was planted after the first soybean crop came in below expectations and early. Private exporters reported the sale of 130,000 tonnes of US corn to unknown destination for the 2012/13 season. South Korea bought 58,000 tonnes of corn. Ethanol production for the week ending April 27th averaged 894,000 barrels per day. This is up 3.3% vs. last week and up 2.17% vs. last year. Total Ethanol production for the week was 6.258 million barrels. Corn used in last week's production is estimated at 95.2 million bushels. Corn use needs to average 94.2 million bushels per week to meet the USDA projection. Stocks were 22.2 million barrels. This is up 1.7% vs. last week and up 12.4% vs. last year. July Rice finished down 0.165 at 14.855, 0.155 off the high and equal to the low.
Corn Products 1st-qtr profit beats Street estimates
By Thomson Reuters - Wed 02 May 2012 09:41:13 CT
Corn Products International Inc posted a first-quarter profit that beat analysts' estimates, helped by higher sales in North America and Asia Pacific.
Corn falls for 2nd day on crop prospects
By Thomson Reuters - Wed 02 May 2012 09:31:41 CT
Chicago corn futures fell for a second day, weighed down by speedy U.S. planting which has boosted prospects of above-average yields and early crop output replenishing tight old-crop supplies. "Crop conditions across the United States are certainly favourable at this stage," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia.
Philippines to finalise 120,000T rice import deal in May
MANILA, May 2 (Reuters) - The Philippines will in the next three weeks choose Cambodia, Thailand or Vietnam to supply up to 120,000 tonnes of rice it needs to boost its buffer stocks, a senior government official said on Wednesday.
The country's state grains procurement agency said last month it would import the rice to deepen its reserves before the lean harvest season begins in July, with rice producers in its Southeast Asian neighbours eagerly awaiting a decision.
SOFTS-Cocoa near 5-week high, sugar above 11-month low
LONDON, May 2 (Reuters) - ICE cocoa futures consolidated in early trade after a rally on Tuesday, while raw sugar eased to stand above an 11-1/2-month low, pressured by a firmer dollar and expectations of a big global supply surplus. Cocoa futures firmed, and stood below Tuesday's five-week high, basis second month, after soaring due to short covering on Tuesday. Cocoa futures have moved higher in a corrective bounce from Monday's 7.1 percent tumble on month-end technical sales.
Ghana's Cocobod probes 70,000 t discrepancy-official
LONDON/ACCRA, May 1 (Reuters) - Ghana's cocoa regulator Cocobod is investigating a shortfall of around 70,000 tonnes of beans between official cocoa purchases and its inventory after buyers reported inflated volumes, a Cocobod official told Reuters.
A fall in cocoa output in the world's second largest producer, combined with tight credit conditions, could have contributed to local buyers overstating cocoa purchases in order to gain advance funding - bruising Cocobod's reputation for being a low risk loan recipient.
India's Oct-April sugar output up 11 pct y/y-industry
NEW DELHI, May 2 (Reuters) - India produced 25.1 million tonnes of sugar between October and April, up 11 percent from the year-ago period, a sugar producers' body said in a statement on Wednesday.
The Indian Sugar Mills Association (ISMA) said the western state of Maharashtra produced 8.8 million tonnes, northern state of Uttar Pradesh 6.9 million tonnes, and southern Karnataka state 3.7 million tonnes.
China imports to drive world cotton trade-ICAC
May 1 (Reuters) - China will account for more than half of global cotton imports in 2011/12, driving world cotton trade up 13 percent for the year, an international farm group said on Tuesday.
The International Cotton Advisory Committee secretariat said in a monthly report that the boost in Chinese imports will more than double its cotton stocks to 5 million tonnes in 2011/12, and shipments from India, Brazil and Australia could reach record levels.
Egypt 2012/13 sugar imports seen down - US attache
May 1 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Egypt:
"In 2012/2013 total sugar imports are forecast at 1.15 million tonnes compared to 1.43 million tonnes in MY 2011/2012. The decrease in imports is due to relatively high 2011/2012 ending stocks totaling 350,000 tonnes. Consumption is expected to increase to 2.95 million tonnes based largely on population growth."
Euro Coal-DES hits fresh 2-yr low at $90.50/T
LONDON, April 30 (Reuters) - European prompt physical coal prices slid $2.50 a tonne to a new two-year low of $90.50 a tonne on Monday, pushed down by weak fundamentals.
A June DES ARA cargo traded at $90.50 early on Monday, down from the previous trade last week at $93.15.
Supply glut drives Europe coal prices to 2-year lows
LONDON, May 1 (Reuters) - European coal prices slumped to a two-year low on Tuesday with market players citing growing oversupply as large shipments from the United States and Colombia aggravated a glut in the region after an unusually warm winter.
Prices fell despite healthy use by power generators in countries including Germany, where profitability of power generation from coal now stands at the highest levels since 2008 compared with more expensive natural gas.
Asia fuel oil market may be too relaxed
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
LAUNCESTON, Australia, May 2 (Reuters) - While the potential loss of Iranian crude is keeping the oil market on its toes, traders seem to be relaxed about the impact on other parts of the barrel, with Asian fuel oil particularly at risk.
The discount of benchmark 180 centistoke fuel oil in Singapore to Dubai crude has widened 21 percent in the past week to $4.68 a barrel.
The reason cited by traders is the build up in onshore inventories in the city state to a two-week high of 19.231 million barrels, as well as expected heavier imports from Europe in coming months.
OIL-Oil slips on European manufacturing data
LONDON, May 2 (Reuters) - Oil eased on Wednesday, as weak economic data in Europe hit the demand outlook, countering more positive figures from China and the United States.
"It does feel a bit like we are in a negative death spiral," said Bjarne Schieldrop, chief commodity strategist at SEB in Oslo. "Austerity
Taiwan CPC offers first 1 pct sulphur gasoil vols -trade
SINGAPORE, May 2 (Reuters) - Taiwan's CPC has offered gasoil with one percent sulphur content for the first time, ahead of a refinery unit maintenance, traders said on Wednesday.
The refiner has offered 250,000-300,000 barrels of the high sulphur gasoil grade for June lifting in a tender closing on May 3. Bids will be valid until May 4.
Russia's April oil output edges down 0.3 pct
MOSCOW, May 2 (Reuters) - Russian oil output declined 0.3 percent to 10.33 million barrels per day (bpd) in April from 10.36 million bpd in March, falling to its lowest monthly output this year, Energy Ministry data showed on Wednesday.
In each of previous months this year, oil output reached a post-Soviet monthly high.
Myanmar eyes oil, gas tender in August
SINGAPORE, May 2 (Reuters) - Myanmar may launch a global tender for onshore oil and gas blocks in August, a senior government official told Reuters on Wednesday, inviting foreign firms to invest millions of dollars for access to untapped resources in the fast-changing Southeast Asian nation.
Myanmar, one of the world's oldest oil producers, has opened up to the outside world with astonishing speed since a civilian government took office a little over a year ago. The prospect of the end of Western sanctions has prompted a surge of interest from investors.
Brazil won't weaken oil regs for foreign investors
HOUSTON, May 1 (Reuters) - Brazil has the world's best safety record for oil company operations, despite recent offshore spills, and will enforce its rules even at the risk of diminished foreign investment, the country's energy agency director said on T ues day.
"Brazil has the lowest incidence of accidents in the whole world. Brazil has a very strong regulator," Magda Chambriard, director of Brazil's energy agency, ANP, said in an interview on the sidelines of the Offshore Technology Conference.
Oil Fluctuates After Biggest Drop in Two Weeks on Stockpile Gain (Source: Bloomberg)
Oil traded little changed after sliding the most in two weeks in New York as crude stockpiles surged to the highest level in more than 21 years in the U.S., the world’s biggest consumer of the commodity. Futures fluctuated after slipping 0.9 percent yesterday. Crude inventories increased 2.8 million barrels last week to 375.9 million, the most since September 1990, according to the Energy Department. Prices also dropped as U.S. employers added fewer jobs than forecast and factory orders fell. Crude for June delivery was at $105.39 a barrel, up 17 cents, on the New York Mercantile Exchange at 9:03 a.m. Sydney time. The contract yesterday slid 94 cents to $105.22, the lowest close since April 30. Front-month prices are 6.7 percent higher this year. Brent oil for June settlement decreased $1.46, or 1.2 percent, to $118.20 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark contract’s premium to West Texas Intermediate closed at $12.98.
Barrick Leads Miners Spending Faster Than Earnings Rise (Source: Bloomberg)
Capital spending by the largest gold producers is increasing at a faster pace than earnings for a second straight year as the industry’s biggest mining projects are beset by delays and surging labor costs. Barrick Gold Corp. (ABX) said yesterday it’s reviewing cost estimates for its $5 billion Pascua-Lama gold and silver project on the Chile-Argentina border because of wage and raw-materials inflation. Newmont Mining Corp. (NEM) may have to raise the $4.8 billion budget for its Conga mine in Chile after political opposition. The two gold miners are building the multibillion-dollar mines to arrest a decline in production and end the underperformance of their shares relative to the commodity they produce. Escalating costs may mean producers reassess other proposed projects, according to Jorge Beristain, an analyst at Deutsche Bank AG.
“The growth-at-any-cost route, I think, is the wrong way to go,” George Topping, a Toronto-based analyst at Stifel Nicolaus & Co., said in an interview. “The only people that are making money off building these new mines are the employees, the government, contractors. The shareholders aren’t actually getting any of the rewards here.”
Iron Ore-Spot steady as China weighs demand outlook
SINGAPORE, May 2 (Reuters) - Spot iron ore prices were mostly steady on Wednesday as Chinese markets reopened after a long holiday weekend with buyers opting for caution amid a still shaky outlook for steel demand.
Shanghai rebar steel futures also hovered at levels where they closed last week, giving Chinese producers less impetus to pick up fresh iron ore cargoes.
India to supply 2 mln T of iron ore to Japan annually-min
NEW DELHI, April 30 (Reuters) - India has agreed to supply 2 million tonnes of iron ore per year to Japan under an extension of an earlier agreement, Trade Minister Anand Sharma said on Monday.
India, once the world's third-biggest supplier of iron ore, has lost its pricing advantage due to high export taxes and freight costs, making the steel-making ingredient from Australia and Brazil cheaper.
Gold Falls a 3rd Day on Speculation Stimulus Not Needed (Source: Bloomberg)
Gold declined the most in a week after three voting members of the Federal Open Market Committee said they don’t see a need for more economic stimulus and as physical demand slumped in India, the world’s biggest importer. John Williams, president of the San Francisco Fed, joined his counterparts from Richmond, Philadelphia and Atlanta in casting doubt on the need for additional purchases of bonds to push down longer-term interest rates even as American employers added fewer jobs than forecast. India imported 30 to 35 metric tons of gold in April, down from 90 tons a year earlier, the Bombay Bullion Association said today. “The market is clearly worried,” Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said in a telephone interview. “The physical demand has also been very weak.”
Gold futures for June delivery fell 0.5 percent to settle at $1,654 an ounce at 1:41 p.m. on the Comex in New York, the biggest drop for a most active contract since April 23. Prices declined for the past three months, the longest losing streak since 2001. Companies in the U.S. added 119,000 workers in April, according to figures from Roseland, New Jersey-based ADP Employer Services. The median forecast of economists surveyed by Bloomberg News called for a 170,000 advance.
Baltic sea index drops on tepid trade
May 1 (Reuters) - The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry commodities, fell on Tuesday for a second straight day as labour holidays led to a subdued market and analysts expected rates to be flat over this week.
The overall index, which reflects the daily freight market prices for capesize, panamax, supramax and handysize dry bulk transport vessels, fell three points or 0.26 percent to 1,152 points.
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