CBOT wheat closes firm on K.C. HRW strength - Reuters News
20-Apr-2018 02:33:47 AM
CHICAGO, April 19 (Reuters) - U.S. winter wheat futures rose on Thursday, with K.C. hard red winter wheat contracts gaining the most, on concerns that expected rains will not be widespread enough to improve harvest prospects for the crop in key growing areas of the U.S. Plains.
Gains in Chicago Board of Trade soft red winter wheat were kept in check by technical selling when the most-active contract matched its April high of $4.94 a bushel.
· MGEX spring wheat futures sagged, weighed down by forecasts for warmer weather that will allow farmers to start planting in the northern Plains in the coming weeks.
· The U.S. Agriculture Department said on Thursday morning that wheat export sales in the latest week were 173,500 tonnes, near the low end of market forecasts that ranged from 100,000 to 550,000 tonnes.
| Last | Net chng | Pct chng | Low | High | Volume | |
| WHEAT SRW MAY8 | 476.75 | 1.50 | 0.3 | 471.75 | 480.00 | 40016 |
| WHEAT SRW JUL8 | 490.75 | 1.50 | 0.3 | 485.00 | 494.00 | 60471 |
| WHEAT HRW MAY8 | 495.25 | 6.50 | 1.3 | 489.50 | 496.75 | 11865 |
| WHEAT HRW JUL8 | 514.25 | 6.50 | 1.3 | 508.50 | 516.00 | 25274 |
| SPG WHT MAY8 | 613.50 | -4.50 | -0.7 | 608.25 | 619.75 | 3851 |
| SPG WHT JUL8 | 618.75 | -6.00 | -1.0 | 614.25 | 626.00 | 5940 |
(Reporting by Mark Weinraub)
CBOT corn weakens as planting forecast improves - Reuters News
20-Apr-2018 02:32:48 AM
CHICAGO, April 19 (Reuters) - Chicago Board of Trade corn futures ended slightly weaker on Thursday on forecasts for warmer weather that will allow farmers in the U.S. Midwest to pick up their pace of planting, traders said.
· CBOT May corn has fallen for four of the last five trading sessions.
· Technical support for May corn was noted near its five-day moving averages.
· The U.S. Agriculture Department on Thursday reported weekly corn export sales of 1.204 million tonnes, near the high end of analysts' forecasts that ranged from 700,000 to 1.4 million tonnes.
| Last | Net chng | Pct chng | Low | High | Volume | |
| CORN MAY8 | 381.50 | -1.50 | -0.4 | 380.75 | 383.50 | 91650 |
| CORN JUL8 | 390.50 | -1.25 | -0.3 | 389.75 | 392.50 | 103210 |
| ETHANOL MAY8 | 1.507 | 0.005 | 0.3 | 1.496 | 1.510 | 160 |
| ETHANOL JUN8 | 1.500 | 0.009 | 0.6 | 1.486 | 1.500 | 69 |
(Reporting by Mark Weinraub; Editing by Lisa Shumaker)
CBOT soybeans weaken on export concerns - Reuters News
20-Apr-2018 02:25:57 AM
CHICAGO, April 19 (Reuters) - Chicago Board of Trade soybean futures fell on Thursday, with investors worried about buying demand from China despite a strong export report, traders said.
· Consolidation trade was noted around the CBOT July soybean futures contract's 20-day moving average.
· Strength in the cash market limited the weakness in soybeans.
· The U.S. Agriculture Department on Thursday morning said soybean export sales in the week ended April 12 totaled 2.132 million tonnes, near the high end of market forecasts for 1.4 million to 2.2 million tonnes.
· But the USDA has not reported any spot soybean sales this week.
· Soymeal and soyoil futures also were weaker.
· The most-active soyoil futures contract attracted some bargain buyers after prices hit their lowest since June 17 but prices still closed in negative territory.
| Last | Net chng | Pct chng | Low | High | Volume | |
| SOYBEANS MAY8 | 1037.00 | -4.75 | -0.5 | 1032.75 | 1044.75 | 77910 |
| SOYBEANS JUL8 | 1048.75 | -4.50 | -0.4 | 1044.25 | 1056.25 | 108777 |
| SOY MEAL MAY8 | 372.90 | -3.70 | -1.0 | 372.80 | 377.90 | 36733 |
| SOY MEAL JUL8 | 377.50 | -3.70 | -1.0 | 377.40 | 382.40 | 46561 |
| SOYBEAN OIL MAY8 | 31.40 | -0.03 | -0.1 | 31.33 | 31.57 | 31192 |
| SOYBEAN OIL JUL8 | 31.68 | -0.01 | 0.0 | 31.60 | 31.83 | 38583 |
(Reporting by Mark Weinraub Editing by Tom Brown)
Argentina 2017-18 soy harvest seen falling to 37.6 mln T -government - Reuters
20-Apr-2018 01:21:34 AM
BUENOS AIRES, April 19 (Reuters) - Argentine farmers are expected to harvest 37.6 million tonnes of soybeans in the 2017-18 crop cycle, the country's Agriculture Ministry said on Thursday, down from 55 million tonnes last year due to the impact of a prolonged drought.
Agriculture Minister Luis Miguel Etchevehere said in a press conference that the 2017-18 corn harvest was seen at 42 million tonnes, down from 49.5 million tonnes last year.
(Reporting by Maximilian Heath
Writing by Luc Cohen; Editing by Dan Grebler)
PRECIOUS-Gold breaks string of gains as global tensions ease - Reuters News
20-Apr-2018 01:58:45 AM
- Silver hits 2-1/2-month high
- Spot gold faces resistance at $1,356/oz -technicals
- Higher base metal prices could boost inflation -analysts
(Updates prices; adds comment, second byline, NEW YORK dateline)
By Renita D. Young and Eric Onstad
NEW YORK/LONDON, April 19 (Reuters) - Gold prices dipped on Thursday, breaking a string of gains for four successive sessions, in response to a decline in global political tensions.
Spot gold lost 0.2 percent at $1,346.20 per ounce by 1:38 p.m. EDT (1738 GMT), while June U.S. gold futures settled down $4.70, or 0.4 percent, at $1,348.80 per ounce.
"Uncertainty has decreased somewhat. Geopolitical worries, trade risk have moved to the background," said ABN AMRO commodity strategist Georgette Boele.
U.S. President Donald Trump said on Wednesday he hoped a summit with North Korean leader Kim Jong Un would be successful while Western missile strikes in Syria were less extensive than some had feared.
Earlier in the week, a senior administration official said Trump delayed imposing additional sanctions on Russia.
Boele said she expected gold to decline to around $1,330 after failing to break above resistance.
"There was a bit of upward momentum, but you are still in the $1,300-$1,365 range. It's more of a technical trade at the moment - it tries the upside again and if that doesn't succeed then it falls back."
"Rates are up and dollar-supportive. The Fed still seems to be on the path for tightening. The Fed and cryptocurrencies, a bit, have been hampering (gold)," said Dan Denbow, USAA senior portfolio manager.
Rising yields make gold a less attractive investment because it does not draw interest.
Meanwhile, spot silver prices rose 0.6 percent to $17.25 per ounce after touching their highest since Feb. 1 of $17.35.
"A bounce in silver is not a surprise to me because you have lower liquidity and it's more sensitive to sentiment," Boele said, adding that she expected silver to follow gold lower in coming days or weeks.
"The precious metals fought through some headwinds yesterday. Everything except silver is succumbing to those headwinds today," said Chris Gaffney, president of world markets at EverBank.
Silver also is used for industrial purposes, so it has been lifted by a rally in base metals.
"The downside is relatively limited in silver because it was the one that was pushed too low. Also there are no positions to be squeezed."
Silver has been the worst performing precious metal over the past six months, little changed versus a rise of 4.5 percent for gold and 7.7 percent for palladium.
Platinum lost 0.2 percent at $933.24 per ounce. It touched more than a three-week high of $953.50 earlier in the day.
Palladium fell 0.3 percent to $1,032.40 per ounce, after marking its highest since Feb. 27 of $1,057.20.
(Additional reporting by Eileen Soreng in Bengaluru; Editing by Jane Merriman and Richard Chang)
UPDATE 1-OPEC, non-OPEC panel finds oil glut virtually eliminated - Reuters News
19-Apr-2018 11:30:19 PM
Adds details, background
By Rania El Gamal
JEDDAH, Saudi Arabia, April 19 (Reuters) - A global oil glut has been virtually eliminated, according to a joint OPEC and non-OPEC technical panel, two sources familiar with the matter said, thanks in part to an OPEC-led supply cut deal in place since January 2017.
The meeting of the Joint Technical Committee (JTC) earlier on Thursday found that oil inventories in developed nations in March stood at 12 million barrels above the five-year average, one of the sources said. That's down from 340 million barrels above the average in January 2017.
The stated goal of the supply cut is to reduce the excess in oil stocks to that of the five-year average, although oil ministers have said other metrics should also be considered.
Although OPEC is closing in on the original target of the pact, there is no indication yet that top exporter Saudi Arabia or its allies want to wind down the supply cut.
Saudi Arabia would be happy to see crude rise to $80 or even $100 a barrel, three industry sources said, a sign Riyadh will seek no changes to the supply-cutting deal even though its original target is within sight.
The Organization of the Petroleum Exporting Countries, Russia and several other producers began to reduce supply in January 2017 in an attempt to erase a glut. They have extended the pact until December 2018 and meet in June to review policy.
Few OPEC sources call for an exit strategy. Most officials are talking of introducing additional inventory metrics to assess the success of the deal, and of a need to support investment in new production to avert any supply crunch.
The impression is that oil prices are seen as not yet high enough to encourage sufficient oil investment. Oil was trading above $74 on Thursday, having reached its highest since November 2014.
After the technical meeting, a ministerial panel of OPEC and non-OPEC producers called the JMMC gathers in Jeddah on Friday.
The ministers are expected to discuss the five-year average inventory metric on Friday, though the JTC has made no recommendations on this, the sources said.
OPEC's Secretariat in Vienna will be tasked to prepare a study with different scenarios on inventories, market fundamentals and the risks which might impact market stability such as possible U.S. sanctions on Iran, one of the source said.
(Reporting by Rania El Gamal, writing by Alex Lawler, editing by David Evans)
UPDATE 9-Oil pulls back from gains; OPEC says glut nearly gone - Reuters News
20-Apr-2018 01:43:19 AM
- Saudi Arabia seen seeking oil price of $80-$100 a barrel
- Global crude glut largely eliminated - OPEC sources
- Buyers look for more upside based on demand, supply disruptions
- U.S. demand strong, gasoline, distillate stocks fall - EIA
Updates prices
By David Gaffen
NEW YORK, April 19 (Reuters) - Oil prices hit highs not seen since 2014, but later gave back gains following a swift rally over the last week, built on the ongoing drawdowns in global supply and as Saudi Arabia looks to push prices higher.
OPEC producers told Reuters on Thursday the inventory overhang has largely disappeared, even as production in the United States increases.
Traders said speculators continue to bet on further upside, expecting potential supply disruptions and further drawdowns, driven by strong demand. Investors are eyeing the $70 level, but said that would likely face resistance, particularly as the speed and magnitude of the recent rally would augur for selling pressure before long.
"I do think we could see $70 pretty quick, but I want to caution that maybe we'll see the market level out a little bit in a few weeks," said Phil Flynn, analyst at Price Futures Group in Chicago.
U.S. West Texas Intermediate (WTI) crude futures were down 15 cents at $68.33 as of 1:27 p.m. EDT (1727 GMT), after earlier hitting $69.56, the highest since Nov. 28, 2014. WTI has gained nearly 8 percent in the last eight days of trading.
More than 700,000 contracts changed hands on CME Group's New York Mercantile Exchange on Thursday, compared with a daily average of about 615,000 contracts.
Brent crude futures were up 96 cents at $74.44. The global benchmark touched $74.74 a barrel, the highest since Nov. 27, 2014 - the day OPEC decided to pump as much as it could to defend market share.
OPEC's Joint Technical Committee, meeting this week in Jeddah, found that inventories in developed nations in March were at just 12 million barrels above the five-year average, according to a source familiar with the matter.
Since the outset of the late 2016 agreement to reduce supply, reached by the Organization of the Petroleum Exporting Countries and non-members including Russia, the inventory glut has largely been eliminated, OPEC sources said in Saudi Arabia on Thursday.
However, Oman's oil minister, Mohammed bin Hamad Al Rumhi, on Thursday said he still thinks the oil market is oversupplied.
Reuters reported on Wednesday that Saudi Arabia would be happy for crude to reach $80 or even $100 a barrel, viewed as a sign that Riyadh will not seek changes to the supply pact.
In the United States, commercial crude stocks fell close to the five-year average of about 424 million barrels. Gasoline and distillate stocks also fell, and refinery usage has been at highs not seen for this time of year in 13 years, according to the U.S. Energy Information Administration.
"Product demand was strong, products (inventories) were lower, crude was lower - it was really across the board supportive," said Robert Yawger, director of energy futures at Mizuho.
Also supporting prices is the possibility that the United States might reimpose sanctions on Iran, OPEC's third-largest producer, which could result in further supply reductions from the Middle East.
(Additional reporting by Shadia Nasralla in London, Koustav Samanta and Henning Gloystein in Singapore, Nina Chestney in London; editing by Marguerita Choy and David Evans)
FOREX-Dollar rises with higher U.S. yields, sterling slumps - Reuters News
20-Apr-2018 03:00:29 AM
- Pound falls to near two-week low after BOE Carney's remarks
- U.S. 2-year yield climbs to highest level since Sept 2008
- Euro stalls as traders worry about euro zone growth
Updates market action, adds quote
By Richard Leong
NEW YORK, April 19 (Reuters) - The dollar gained against a basket of currencies on Thursday on higher U.S. bond yields and expectations of more rate increases from the Federal Reserve, while sterling fell to a near two-week low on perceived dovish remarks from the head of the Bank of England.
Recent economic data suggested business activities overseas may have peaked. This has reduced the appeal of the euro, yen, pound and other currencies which have strengthened against the dollar since 2017 based on the view economies outside the United States had been faring better until recent weeks.
The relatively optimistic backdrop in the United States should support the Fed to raise short-term rates at least twice more in 2018, traders and analysts said.
"People are looking at the next potential rate hike whether we get two or three more this year," said Minh Trang, senior foreign exchange trader at Silicon Valley Bank in Santa Clara, California.
An index that tracks the greenback versus the euro, yen, sterling and three other currencies rose 0.28 percent, to 89.877 after touching a one-week peak.
The euro was last down 0.21 percent, at $1.2346, while the dollar was 0.10 percent higher at 107.34 yen.
The U.S. economy, while not firing on all cylinders, has remained on a steady growth path which has assured the Fed to stick with its current pace of rate increases.
This has propelled the two-year Treasury yield to 2.436 percent, its highest level since September 2008. Its yield gap over two-year German Bunds has reached its widest level in over three decades. The hefty 3 percentage point yield premium has supported some overseas demand for the dollar, analysts said.
On the other hand, the dollar faces headwinds from the uncertainty stemming from U.S. President Donald Trump's trade and economic policies, as well as political events in the Middle East and elsewhere.
"There is a little bit of fatigue with the trade war issue and the global economic cycle is losing momentum, especially in the euro zone whereas the U.S. is holding up," said Christin Tuxen, an FX strategist at Danske Bank in Copenhagen.
Investors are growing nervous that the euro zone economy's rebound is nearing the top and the European Central Bank may move more slowly to tighten monetary policy.
Bank of England Governor Mark Carney on Thursday acknowledged the recent mixed domestic economic readings, which reinforced the view the BOE would raise rates gradual over next few years. His comments knocked the pound to near two-week low against the dollar.
Sterling was last down 0.85 percent at $1.4085.
========================================================
Currency bid prices at 1443 EDT (1843 GMT):
| Description | Last | U.S. Close | Pct Change | YTD Pct | High Bid | Low Bid |
| Euro/Dollar | $1.2344 | $1.2372 | -0.23 | +2.90 | +1.2400 | +1.2330 |
| Dollar/Yen | 107.3800 | 107.2300 | +0.14 | -4.70 | +107.5100 | +107.1900 |
| Euro/Yen | 132.55 | 132.68 | -0.10 | -1.95 | +133.0700 | +132.3600 |
| Dollar/Swiss | 0.9716 | 0.9685 | +0.32 | -0.28 | +0.9724 | +0.9668 |
| Sterling/Dollar | 1.4082 | 1.4201 | -0.84 | +4.22 | +1.4245 | +1.4079 |
| Dollar/Canadian | 1.2671 | 1.2626 | +0.36 | +0.75 | +1.2675 | +1.2585 |
| Australian/Dollar | 0.7719 | 0.7782 | -0.81 | -1.05 | +0.7812 | +0.7720 |
| Euro/Swiss | 1.1993 | 1.1985 | +0.07 | +2.60 | +1.2001 | +1.1963 |
| Euro/Sterling | 0.8763 | 0.8712 | +0.59 | -1.35 | +0.8770 | +0.8689 |
| NZ Dollar/Dolar | 0.7262 | 0.7317 | -0.75 | +2.48 | +0.7342 | +0.7262 |
| Dollar/Norway | 7.7970 | 7.7601 | +0.48 | -5.00 | +7.8039 | +7.7340 |
| Euro/Norway | 9.6281 | 9.6008 | +0.28 | -2.24 | +9.6385 | +9.5718 |
| Dollar/Sweden | 8.4093 | 8.4027 | -0.17 | +2.53 | +8.4181 | +8.3712 |
| Euro/Sweden | 10.3810 | 10.3989 | -0.17 | +5.51 | +10.4051 | +10.3593 |
(Additional reporting by Tommy Wilkes in LONDON, Shinichi Saoshiro in TOKYO;
Editing by Susan Thomas and Tom Brown)
US STOCKS-Apple, Philip Morris, chips lead slide on Wall Street - Reuters News
20-Apr-2018 01:16:29 AM
- Chip stocks tumble on TSMC's weak industry outlook
- P&G, Philip Morris weigh on consumer staples sector
- AmEx jumps after strong results
- Financials gain as bond yields rise
- Indexes down: Dow 0.5 pct, S&P 0.79 pct, Nasdaq 0.87 pct
Updates to early afternoon
By Sruthi Shankar
April 19 (Reuters) - U.S. stocks fell on Thursday, as technology stocks from Apple to chipmakers declined following a weak forecast on smartphone demand, while a sharp drop in Philip Morris's shares after results weighed on the consumer staples sector.
A warning from Taiwan Semiconductor (TSMC), the world's largest contract chipmaker and Apple supplier, on soft demand for smartphones and on the semiconductor industry's growth this year sparked a tumble in chip stocks.
Apple's shares also fell 2.4 percent, with analysts telling Reuters that TSMC's warning was related to the iPhone maker. Apple was the biggest drag on the Dow Jones Industrial Average and the Nasdaq.
TSMC's U.S.-listed shares fell 5.8 percent. Intel declined 3.1 percent, falling the most on the Dow. All the stocks on the Philadelphia SE semiconductor index were in the red, with the index itself tumbling 3.9 percent.
"The broader tech weakness that you're seeing is out of out weak guidance that's impacting Apple and the semi-conductor space," said Michael Hans, chief investment officer at New York City-based Clarfeld Financial Advisors.
The only bright spot was the financial sector, which was up 1.2 percent, supported by American Express shares and a rise in 10-year Treasury yields to a near two-month high.
"Given that we've seen considerable rise in rates and a steeper curve, by one of the largest margins that we've seen in the several weeks, and that's been really benefiting the financials," Hans said.
The S&P consumer staples sector declined 3.5 percent as Philip Morris plunged 16.5 percent after the tobacco company's weak results and forecast.
Philip Morris was the biggest drag on the S&P 500 and also dragged rival Altria down 7.8 percent.
Procter & Gamble also dropped 3.2 percent after the Dow component said shrinking retailer inventories and higher commodities and transportation costs squeezed its margins.
At 12:42 p.m. ET, the Dow was down 0.50 percent, at 24,623.67. The S&P 500 fell 0.79 percent to 2,687.12 and the Nasdaq Composite dropped 0.87 percent to 7,231.51.
AmEx jumped 6.2 percent after the credit card issuer topped Wall Street profit estimates.
"What's happening in this season is even if you meet (profit expectations), that's not good enough, you've got to beat convincingly," said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago.
Of the 52 companies among the S&P 500 that have reported first-quarter earnings through Wednesday, 78.8 percent topped profit expectations, according to Thomson Reuters data.
Declining issues outnumbered advancers by a 2.56-to-1 ratio on the NYSE and by a 1.70-to-1 ratio on the Nasdaq.
The S&P index recorded 23 new 52-week highs and 14 new lows, while the Nasdaq recorded 82 new highs and 40 new lows.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)
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