Argentina - World record grain harvest
04 Jun 2013
In its opening World Agricultural Supply and Demand Estimates report for this
season, the US Department of Agriculture has forecast global wheat production
at 701.1 million tonnes.
If the prediction eventuates by the end of the year, it will be the first time global
grain producers have harvested a wheat crop of more than 700 million tonnes.
Global corn production was estimated by the USDA at 965.9 million tonnes, much
higher than the previous best of 881.8 million tonnes harvested in 2011-12.
Chicago Board of Trade wheat futures prices fell by 2.7 per cent on Friday to end
the day at US704c a bushel, or $A259 a tonne, after the release of the WASDE
report.
CBOT corn prices ended 1.9 per cent lower at US636c/bu, or $A251 a tonne.
The USDA forecast Australian wheat production at 24.5 million tonnes.
"Production for 2013-14 is projected higher in all of the world's major exporting
countries, with the largest increases expected in the FSU-12 (former Soviet
Union countries) and EU-27 (European Union), up 29.9 million tonnes and 6.7
million tonnes, respectively," the USDA said.
"Production is projected higher for Australia, Argentina and Canada, up a
collective 6.2 million tonnes from the current year.
"Also affecting global trade prospects in 2013-14 are year-to-year production
increases for major importers, the Middle East and North Africa, where weather
has been favourable for winter crops since seeding last fall."
The USDA has factored in falls in US wheat production, reflecting the drought
and April freezes in the southern and central plains region. Cool weather swept
across much of the US at the weekend.
The department forecast an opening US wheat crop of almost 56 million tonnes,
well below last year's 61.8 million-tonne harvest but slightly higher than the
2011-12 crop of 54.4 million tonnes.
Global wheat stocks are expected to end the season at 186.4 million tonnes,
leaving the stocks-to-use ratio at a healthy 26.8 per cent.
Australia - Pre-harvest grain contracts
04 Jun 2013
EMERALD Group, via affiliates SQP Grain and Southern Ag Grain, has launched a new
pre-harvest grain contract.
The contract is designed to offer a strong forward price for grain while helping growers
manage on-farm production risk.
The contract, named “3 Windows Flexi,” lets growers lock in a price before harvest and
receive payment in one of two initial windows: during harvest, or in July next year.
“If growers experience production issues this season, they can renegotiate the contract
and deliver in the third window – harvest 2014,” Southern Ag Grain general manager
Chris Kochanski said
Japan - US corn imports suspended
04 Jun 2013
Japan has suspended some imports of grain from the US after the discovery in an Oregon
field of gene-altered crops developed by Monsanto that never won approval for
consumption.
Japan has halted imports of western-white wheat and feed wheat from the US, and
cancelled a plan to buy 24,926 metric tons of western-white wheat in an import tender,
said Hiromi Iwahama, director for grain trade and operation at the Ministry of
Agriculture, Forestry and Fisheries.
The action is aimed at preventing unapproved crops from entering the food chain, he said.
Scientists said the rogue wheat was a strain tested from 1998 to 2005 by Monsanto, the
world’s largest seedmaker, which withdrew its application for approval amid concern
buyers would avoid crops from the US, the world’s biggest wheat exporter.
“We have suspended imports of wheat produced in Oregon and surrounding areas, as we
cannot rule out the possibility that supplies containing unapproved crops may enter
Japan,” Mr Iwahama said.
“We can resume purchases after US authorities establish testing methods to identify the
unapproved variety.”
Wheat on the Chicago Board of Trade fell, extending the biggest monthly loss since
February.
Futures for July delivery dropped as much as 0.9% to $6.9625 (€5.35) a bushel and were
$7.0025 at one stage, extending this year’s losses to 10%.
The ministry controls overseas purchases and domestic sales of wheat to stabilise supply
in Japan, which depends on imports for 60% of its food.
About 90% of wheat produced in Oregon is said to be soft-white wheat, which Japan also
bought for livestock feed, he said.
Japan will continue importing hard-red winter wheat and dark-northern spring wheat
from the US, as they are sourced from Montana, Washington, North Dakota and
Minnesota states, he said.
“Japan is a key importer of wheat from multiple destinations, but they are renowned
purchasers of US wheat, Australian wheat and Canadian wheat,” said Luke Mathews, a
commodity strategist at Commonwealth Bank of Australia.
“Any disruption that occurs to US-Japan trade flows, for whatever reason, has the
potential to be supportive for Australian exporters.”
Japan has stockpiles of wheat equivalent to 2.3 months of consumption. The ministry
expects imports from the US to resume before the inventories are depleted, as the US
government is acting to contain the problem.
The US Department of Agriculture said it is investigating how the unapproved seeds
slipped out and were growing nine years after Monsanto ended its wheat programme.
The discovery may prompt foreign buyers uneasy with gene-altered crops to stop buying
wheat from the US, according to critics.
If Japan discovers supplies containing modified crops that have not been confirmed safe
by the health ministry, it orders importers to ship them back to exporting countries, or
dispose of them.
Japan imported 5.62m tons of milling wheat last fiscal year, of which 3.26m tons or 58%
was from the US.
Canada was the second-largest supplier to Japan, with 1.32m tons, while Australia was
the third with 1.03m.
Japan imported 867,000 tons of western-white wheat from the US in the year ended Mar
31, data showed.
ASA's Wilkins Testifies Before USTR Staff on Soy Aspects of
European Trade Agreement
Targeted News Service -- ST. LOUIS, MO -- May 30, 2013 -- Richard Wilkins, a
soybean farmer from Greenwood, Del., and Executive Committee member of the
American Soybean Association (ASA), testified today before the Trade Policy Staff
Committee of the Office of the U.S. Trade Representative (USTR) on agricultural and
soybean-specific aspects of the proposed Transatlantic Trade and Investment Partnership
(TTIP) between the United States and the 27 member states of the European Union (EU).
In his remarks, Wilkins highlighted the importance of the EU marketplace for American
soy, but noted the sharp decline in soy exports to the EU as a result of certain EU
policies, including the labeling of products containing biotechnology and discriminatory
policies on biofuel feedstocks under the Renewable Energy Directive (RED).
Wilkins specifically addressed the complications presented by the RED, which uses
foreign data to impose greenhouse gas emission benchmark reduction requirements on
American soy imports. "The greenhouse gas formula for soy-biodiesel is based on
production and transportation data for Brazil," he explained. "This significantly
understates the emissions reduction of U.S. biodiesel and thus limits the amount of
biodiesel derived from U.S. soybeans that can qualify under RED."
Wilkins also addressed the EU's conservation requirements; regulation of pesticides; the
subsidizing of soybean production in new Ecological-Focus Areas, or EFAs; and
obstacles to exports of U.S. meat products, the largest consumers of U.S. soybeans.
Asia Curbs US Imports of Wheat after Genetically Modified
Sample Found
Guardian Web -- June 3, 2013 -- The discovery of rogue genetically modified wheat in a
farmer's field in Oregon shook global confidence in the safety of America's food supply
on Friday.
Billions in food exports were potentially at stake following the disclosure by the US
Department of Agriculture of the existence of the GM wheat plants.
The GM variant, developed by the agricultural giant Monsanto, has never been approved
for human consumption.
The discovery in Oregon, about a decade after field trials ended in that state, raised
concerns among the main buyers of America's wheat abroad, as well as an increasingly
active GM movement at home.
The European Union advised member states on Friday to test some wheat shipments from
the US. The EU imports more than 1.1m tonnes of wheat a year.
Asia was also shutting its doors to American wheat imports. South Korea, which last year
imported half of its wheat from the US, cancelled imports, following Japan's lead.
Thailand puts its ports on alert. China and the Philippines said they were closely
watching the USDA's investigations into the GM escape.
"It's going to be a pretty serious blow to all wheat farmers. I would imagine probably the
price of wheat is already going down some," said Fred Kirschenmann, a senior fellow at
the Leopold Centre for Sustainable Agriculture at Iowa State University, who himself
farms 2,600 acres of organic wheat.
"It is definitely going to have an impact because it is right at the time when there is
increasing concern about GM and food so this is not going to be good news for the wheat
farmers."
Food safety and environmental groups have grown increasingly active campaigning for
greater disclosure of GM ingredients over the last several months.
Vermont, Connecticut and New York are all pursuing laws to require GM labelling – a
move furiously resisted by Monsanto and the other big biotech firms.
Kirschenmann said the outbreak could play into public concerns about being given a
greater say over whether they choose to eat GM foods, or avoid them.
Others argued the escape in Oregon offered a reminder – yet again – of the enormous
difficulties of truly isolating GM products from the food chain.
"This is potentially the tip of the iceberg," said Doug Gurian-Sherman, a senior scientist
at the food and environment programme for the Union of Concerned Scientists.
"Where people have looked, they have found contamination occurring. But a lot of the
time no one is looking," he said.
The Government Accountability Office in a 2008 report described six outbreaks of GM
crops into the US food and feed supply.
Gurian-Sherman noted a few more since then. In almost all of those instances, there were
only trace amounts of contamination.
But he said the recurrence of such incidents suggested that the standards, which were
below those in Europe, were too lax. "The contamination is very low, considerable less
than 1%," he said. "But even with that caveat, I don't think people should have a lot of
confidence that there hasn't been contamination events."
Agricultural companies, such as Monsanto, carry out about 1,000 trials of GM crops
every year, often at multiple sites across the country. In any year, companies can be
testing GM cotton and feed crop, as well as food, including fruits and vegetables such as
tomatoes.
Monsanto in 2011 applied for new permits to test another variant of GM wheat in Hawaii
and North Dakota.
"When you add all that together I wouldn't be surprised it there hadn't been some other
experimental gene that leaked out of some other crops and had been carried along with
nobody testing for them," said Gurian-Sherman.
The government is investigating how the GM wheat plants arrived in that Oregon field.
Monsanto in a statement on its website said it would with the authorities, and that there
was no health risk from the outbreak.
"Monsanto will work with the US Department of Agriculture to get to the bottom of the
reported genetically modified wheat detection, there are no food, feed or environmental
safety concerns associated with the presence of the Roundup Ready gene if it is found to
be present in wheat," the company said.
GM variants are now the norm in US corn, cotton and soybeans, making up virtually all
of the soybean crop last year. By some estimates, about two-thirds of US processed foods
contain some GM ingredients.
But GM wheat never gained a foothold because of widespread public resistance, and
Monsanto did not pursue efforts for its commercial development.
However, the company conducted widespread testing of GM wheat in 16 states between
1998 and 2005. The last such test fields in Oregon were planted a decade ago in 2001, the
USDA said.
Those decisions could now return to haunt the US, said Danielle Nierenberg, founder of
The Food Tank. "We have spent a lot of time in the last few years putting China and
other countries down for food safety issues, but we are messing with people's faith in the
food system here," she said. "The US has a long history of claiming we have the safest
and most abundant food system in the world and this undermines that."
Merkley: USDA Must Give Guidance to Oregon Wheat Growers
Within 10 Days
Congressional Documents & Publications -- May 31, 2013 -- Washington, DC -- Today,
Oregon's Senator Jeff Merkley called on Agriculture Secretary Tom Vilsack to give
guidance to Oregon wheat growers on how ensure their product is marketable and meets
the needs of their customers, following the discovery of genetically modified wheat
engineered by Monsanto found in eastern Oregon. Merkley says their guidance must be
given within 10 days, before the Oregon wheat harvest starts. Yesterday, Japan
announced it had halted their purchase of Oregon wheat, illustrating need for quick action
by USDA.
"USDA must move forward quickly with its investigation to determine how genetically
engineered wheat arrived in this farmer's field, and provide clear guidance to the wheat
farmers throughout the Northwest to ensure that their product is marketable and meets the
specifications of their customers. In order to put the appropriate measures in place before
the upcoming wheat harvest, USDA must provide this guidance within the next 10 days."
Merkley also noted that "this incident underscores the need for an agency review of fieldtesting practices to determine how to avoid this situation in the future."
Merkley led an effort last week to repeal the "Monsanto Protection Act," a rider quietly
and anonymously dropped into a must-pass spending bill in March that stripped federal
courts of their ability to require more thorough safety review for some genetically
modified seeds.
The text of the letter is below.
Dear Secretary Vilsack,
As you know, genetically modified "Roundup Ready" wheat engineered by Monsanto
was recently found in a wheat field in eastern Oregon. Because there are no genetically
engineered strains of wheat approved for sale in the United States, and there are countries
that specifically restrict the import of genetically engineered foods, this incident has the
potential to cause significant market disruptions if swift action is not taken to address the
situation.
In Oregon, 85-90% of the wheat grown is exported, most of which goes to Asian markets.
In 2011, this exported wheat was valued at over half a billion dollars. Yesterday, Japan
announced it would temporarily suspend imports of western white wheat and feed wheat
from the U.S., and cancel a purchase of 24,936 metric tons of white wheat.
Within the next two weeks, farmers in Oregon will begin harvesting their wheat crops.
These wheat growers need to know what they can do to ensure that their product is
marketable and will meet the needs of their customers in the Asian markets.
USDA must move forward quickly with its investigation to determine how genetically
engineered wheat arrived in this farmer's field, and provide clear guidance to the wheat
farmers throughout the Northwest to ensure that their product is marketable and meets the
specifications of their customers. In order to put the appropriate measures in place before
the upcoming wheat harvest, USDA must provide this guidance within the next 10 days.
While it is still unclear how this wheat arrived in this farmer's field, this incident
underscores the need for an agency review of field-testing practices to determine how to
avoid this situation in the future.
CME Group Unveils USD-Denominated Palm Oil Swap
Manufacturing Close - Up -- June 3, 2013 -- CME Group, a derivatives marketplace,
announced it has expanded its centrally cleared, over-the-counter agricultural swap
offering through the introduction of a new U.S. dollar-denominated palm oil swap.
In a release dated May 19, the Company said that pending CFTC review, the new USD
Malaysian Crude Palm Oil Calendar Swap will be available for clearing on CME
ClearPort on June 3, and will be listed with and subject to the rules and regulations of the
CBOT.
"Unlike other agricultural commodities that are harvested once a year, palm oil and its
associated refined products are produced continuously here in Asia, ensuring the need for
ongoing risk management against price swings associated with demand and supply
fundamentals," said Nelson Low, Executive Director, Commodity Products, CME Group.
"We're introducing these calendar swaps in response to customers in Singapore, Malaysia
and around the world, who are looking for additional tools to manage counterparty risk in
their underlying cash positions in crude palm oil."
The USD Malaysian Crude Palm Oil Calendar Swap is based on prices from Bursa
Malaysia Derivatives' Crude Palm Oil futures contract.
"BMD's FCPO is the global price benchmark for palm oil, and together with crude palm
oil options contract listed last year, BMD has provided a comprehensive suite of
exchange-traded crude palm oil products. The OTC clearing for the new USD Malaysian
Crude Palm Oil Calendar Swap contract complements the palm products offered by BMD
and we expect greater palm liquidity for both exchanges arising from this CME Group
initiative," said Jeffrey Tan, Product and Market Development General Manager, BMD.
Consuming Canola Oil Can Improve Health and Reduce Chronic
Disease Risk
PR Newswire -- WINNIPEG, MB -- June 3, 2013 -- A comprehensive review of
scientific evidence shows that consuming canola oil instead of other fat sources enhances
health and can help consumers comply with expert dietary fat recommendations. Studies
conducted over the past 25 years about the health effects of canola oil, analyzed in the
June 2013 peer-reviewed journal Nutrition Reviews, confirm canola oil reduces the risk
of heart disease* and suggest that it may also protect against other chronic diseases.
"The objective of this review was to examine the health benefits of canola oil as a dietary
component itself, rather than focus on the effects of individual types of fat in the oil,"
says Peter Jones, Ph.D., lead researcher and director of the Richardson Centre for
Functional Foods and Nutraceuticals at the University of Manitoba. "This approach
results in practical advice to consumers about including canola oil in the diet."
The review, entitled "Evidence of Health Benefits of Canola Oil," looked at the effects of
canola oil consumption on cholesterol, heart disease, inflammation, insulin sensitivity,
oxidation of LDL ("bad") cholesterol, energy metabolism and cancer. A total of 270
studies were evaluated of which 40 were considered directly relevant to the review. All
40 papers described human studies with the exception of those related to cancer
conditions where only cell culture and animal studies exist to date.
Data revealed that canola oil consumption substantially reduces total and LDL
cholesterol levels and improves insulin sensitivity when used in place of saturated fat as
well as increases levels of tocopherol (vitamin E) compared with other dietary fat
sources. Moreover, studies show that:
Canola oil can help consumers meet dietary fat recommendations (less than 10 percent
saturated fat from total daily calories, minimal trans fat and no more than 300 mg of
cholesterol per day) and can be included in a diet designed to reduce cholesterol.
Compared with high-saturated fat or typical Western diets, canola oil-based diets can
reduce total and LDL cholesterol in healthy people and those with high cholesterol,
reducing the risk of heart disease.
With 61 percent monounsaturated fat, canola oil may prevent the oxidation of LDL
cholesterol. Oxidized LDL may contribute to inflammation in the arteries and heart
disease risk.
Canola oil may promote immune and cardiovascular health through its anti-blood clotting
and antioxidative effects.
Early research indicates the potential for canola oil to protect against breast and colon
cancers.
"Canola oil can now be regarded as one of the healthiest edible vegetable oils in terms of
its biological functions and its ability to improve health and aid in reducing diseaserelated risk factors," says Jones. "Current research is expected to provide more complete
evidence to support the health-promoting effects of canola oil when consumed at levels
consistent with dietary guidelines."
Nigerian Trade Team Surveys U.S. HRW Wheat Crop
Targeted News Service -- ARLINGTON, VA -- May 30, 2013 -- Nine representatives
from the top milling and food companies in Nigeria will travel to four states to survey the
new wheat crop from June 2 to 12 as part of an annual trade team visit. On average,
Nigeria is the second largest buyer of U.S. wheat.
For a firsthand look at this year's hard red winter (HRW) and hard white (HW) crops, the
team will meet with university researchers and tour grain and wheat foods facilities in
Oklahoma, Colorado, Nebraska and Kansas. Trade team members will also talk with
wheat farmers in the field, including a stop at the farm of USW Vice Chairman Dan
Hughes in Venango, NE.
"Trade teams bring together both the beginning and end of the grain chain," said Gerald
Theus, assistant regional director for the U.S. Wheat Associates (USW) Sub-Sahara
African Office in Cape Town, South Africa. "Visits like this one allow our Nigerian
customers to make a personal connection with U.S. wheat farmers - who consistently
produce the high quality wheat Nigeria's industry needs."
Theus and Muyiwa Talabi, USW's marketing consultant based in Lagos, Nigeria, will
accompany this year's team. The Nigerian team was sponsored in part by the Oklahoma
Wheat Commission and funding from the U.S. Department of Agriculture's market
development programs. USW also collaborated with the Colorado Wheat Administrative
Committee, Nebraska Wheat Board and Kansas Wheat to organize this year's Nigerian
team. Trade teams like this one reinforce the reliability, quality and value of the U.S.
wheat crop to wheat buyers from around the world.
This team includes representatives from the Nigeria's leading flour mills. One of the
companies, Flour Mills of Nigeria, is the world's largest importer of HW wheat, shipped
from its own export elevator in Corpus Christi, TX. This company and other Nigerian
flour mills also import significant amounts of HRW, hard red spring (HRS), soft red
winter (SRW) and durum.
Turmeric may take a fortnight to gain
colour
Erode, June 3:
Turmeric prices continue to rule flat despite arrivals dwindling to 2,800 bags a day.
Despite lower arrivals, buying was also low.
“Prices are almost static for the last 15 days. Of the 2,800 bags that arrived on Monday,
only 1,250 bags were sold. This is due to the non-receipt of new orders from North
India,” said R.K.V. Ravishankar, President, Erode Turmeric Merchants Association.
He said all traders were waiting for upcountry orders.
He said that before the end of the third week of June, more orders would come from
North India.
Meanwhile, on Monday, prices decreased by two per cent.
He said that some traders in North India are buying stocks from Andhra Pradesh, Assam
and two other places in North India, so the orders have decreased. Last week, fine variety
hybrid turmeric fetched Rs 9,000, but the prices came down to Rs 7,500, due to quality.
At the Erode Turmeric Merchants Association sales yard, the finger variety was sold at
Rs 4,411-7,161 a quintal, the root variety at Rs 4,099-6,100.
Slack demand keeps sugar subdued
Mumbai, June 3:
Sugar prices at the Vashi wholesale market ruled steady on Monday. Spot prices dropped
by Rs 10-Rs 15 for selected varieties as local demand was less than expected. Naka and
mill tender rates were unchanged on routine volume. Prices on domestic futures markets
jumped by Rs 28 for July on expectation of higher festival demand in the coming days.
Moral was positive ahead of the monsoon.
A Vashi-based wholesaler said, “despite the start of the new month, local demand
remained less than expected. Prices in other main production centres continued to rule on
par with Maharashtra, forcing upcountry buyers to source the commodity from nearby
States. Buying from neighbouring States has been missing in Maharashtra since Diwali.
Higher production this year made State-level mills offload sugar in local markets, which
resulted in ample supply, while local demand remained the same.”
May spot prices had dropped by Rs 30 a quintal. The Vashi market continuously carries
100-110 truckloads of inventory, sources said. In Vashi, market arrivals were about 63-64
truck loads (each of 100 bags) and local dispatches were around 61-62 truck loads. On
Saturday evening, 10-12 mills offered tenders and sold 34,000-35,000 bags to local
traders at Rs 2,920- Rs 2,990 (Rs.2,920-Rs 2,990) for S-grade and Rs 3,000-Rs 3,090 (Rs
3,010- Rs 3,090) for M-grade.
On the National Commodities and Derivatives Exchange, sugar July -13 futures was
higher at Rs 3,088 (Rs 3,060), August closed at Rs 3,126 (Rs 3,111) and September
closed at Rs 3,167 (Rs 3,158).
Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,046– Rs 3,151 (Rs
3,070– Rs 3,151) and M-grade Rs 3,162 - 3,341 (Rs 3,172- 3,351). Naka delivery rates:
S-grade Rs 3,020 -3,060 (Rs 3,020-3,060) and M-grade Rs 3,100-3,200 (Rs 3,100-3,200).
Soya futures gain on global cues
Indore, June 3:
Soya oil traded low on weak global cues and demand in the physical market. On Monday,
soya refined fell to Rs 670-75 for 10 kg (Rs 675-80), while soya solvent to Rs 635-40 for
10 kg. Compared to last week, soya refined is down by Rs 10, while soya solvent is
ruling lower by Rs 20. With cotton oil fetching lower prices (Rs 587-Rs 635) compared
to soya oil, bearish sentiment in soya oil will likely to continue in the coming days, said a
soy oil trader Mr Mukesh PurohitSoya oil’s June and July contracts on the NCEDX
closed higher at Rs 709.50 for 10 kg (up Rs 2.20) and Rs 694.50 for 10 kg (up Rs 4.80).
Soyabean prices ruled firm at Rs 3650-Rs 3750 a quintal amid arrival of 35,000 bags.
Plant deliveries in soyabean also ruled firm at Rs 3,750-Rs 3,850 a quintal amid subdued
demand from crushers. In futures, however, soyabean traded higher on strong buying
support at lower rate. On the NCEDX, soyabean’s June and July contracts on Monday
closed at Rs 3,789 a quintal (up Rs 76) and Rs 3,746 a quintal (up Rs 90.50)
Hand-to-mouth buying likely in rice
market
Karnal, June 3:
Rice market may see only need-based buying and rice varieties may rule with marginal
fluctuation in the coming days, said trade sources.
Sluggish demand coupled with easy availability of stocks pulled aromatic and nonbasmati rice down by anything between Rs 50 and Rs 300 a quintal on Monday.
Amit Chandna, proprietor of Hanuman Rice Trading Company, said that the lack of
buying at all levels pulled rice down.
A fall in prices at this time of the year was unexpected, but traders now believe the
market may continue to rule around current levels with marginal fluctuation, Chandna
said.
In the physical market, Pusa-1121 (steam) went further down by Rs 200 and sold at Rs
7,900 a quintal while Pusa-1121 (sela) quoted at Rs 7,250 a quintal, down by Rs 150.
Pure basmati (raw) managed to maintain its previous levels and quoted at Rs 9,000 a
quintal. Duplicate basmati (steam) traded lower by Rs 100 and was at Rs 6,900 a quintal.
Pepper on its way up on limited supplies
Kochi, June 3:
The pepper market on Monday moved up on good demand amid limited supply and all
the active contracts ended much above the previous day’s closing.
Arrivals continued to fall because of the rains in many growing areas in Kerala.
Dispatches from Karnataka have also shown a decline, market sources told Business Line.
Domestic demand has slowed down due to heat wave conditions prevailing in the
Northern India, they said. On the spot, around 15 tonnes of pepper arrived and that were
all traded afloat. Due to the summer showers in the pepper growing regions of Kerala, the
pepper arriving at present has high moisture content of up to 13.5 per cent, traders
claimed.
According to traders, leading exporters doing value addition were said to be buying lower
grade pepper, de-oiled and spent pepper for allegedly mixing with crushed and cracked
pepper. June contracts closed at Rs 35,700 a quintal, up by Rs 300 a quintal. July
contracts increased by Rs 401 a quintal to close at Rs 35,900 and August went up by Rs
310 a quintal to close at Rs 36,000 a quintal.
Total open interest moved up by a tonne to 30 tonnes. Total turnover decreased by 48
tonnes to 69 tonnes. Spot prices remained unchanged at Rs 33,700 (ungarbled) and Rs
35,200 (MG 1) a quintal on matching demand and supply.
Indian parity in the international market was at $6,450 a tonne (c&f) for June shipments
for Europe and $6,650 a tonne (c&f) for the US. Malabar prices are in line with those in
Vietnam now, export sources said. The Indian parity has declined despite increase in
futures prices due to weakening of the rupee against the dollar, they added.
Groundnut oil rebounds on festival
demand
Mumbai, June 3:
Groundnut oil and cotton refined oil extended gains further by Rs 30 and Rs 2 each for 10
kg on Monday, tracking firm reports from Saurashtra, the main production centre. In
Rajkot, the bullish trend in groundnut oil continued on expectations of higher festival
demand in the coming days. It rose by Rs 30 on Monday, taking the total rise to Rs 70 for
10 kg in the last two working days. Palmolein rose by Re 1 and soyabean refined oil
increase by Rs 2, on the weak Indian currency.
Sources said that despite the start of new month, local demand remained slack. Resale
selling pressure and a weak Indian rupee continued to weigh on sentiment.
During the day, about 150-200 tonnes of palmolein were traded in resale at Rs 507-Rs
508 for ready-weekly delivery. Ruchi sold some quantity of palmolein at Rs 510 exJNPT. Barring this, there was no activity. The futures market was firm as monsoon can
set in any time in production centres, leading to supply disturbance. Soyabean arrivals
were 64,000-65,000 bags, including 35,000 bags in Madhya Pradesh. Prices were Rs
3,700 ex-mandi and Rs 3,750-3,800 for plant delivery. Mustard seed arrivals were 2.102.15 lakh bags and the prices were Rs 3,080-Rs 3,550. At the close of the day, Liberty
was quoting palmolein at Rs 515-517, super palmolein at Rs 553, Super deluxe at Rs 573
and sunflower refined oil at Rs 780. Ruchi was quoting Palmolein at Rs 515 till June 10,
soyabean refined oil at Rs 668, and sunflower refined oil at Rs 765. Gokul quoted
palmolein at Rs 515 for June.
In Gujarat, Palmolein ex-Kandla was quoted in the range of Rs 510-Rs 515. In Saurashtra
– Rajkot groundnut oil extended gains by Rs 30 to Rs 1,700 (Rs 1,670) for telia tin and
by Rs 25 to Rs 1,100 (Rs 1,075) for loose (10 kg). On the National Commodities and
Derivatives Exchange, soyabean refined oil’s July futures was up by Rs 4.80 to Rs
694.05 (Rs 689.25), August was higher by Rs 5.45 at Rs 688.20 (Rs 682.75) and
September was Rs 678.00 (Rs 672.55). Malaysia crude palm oil July futures settled at
MYR 2,390 (MYR 2,391), August at MYR 2,396 (MYR 2,397) and September at MYR
2,397 (MYR 2,396) a tonne.
The Bombay Commodity Exchange spot rates (Rs/10 kg) were: Groundnut oil 1,100
(1,070), soya refined oil 668 (666), sunflower exp. ref. 675 (675), sunflower ref. 765
(765), rapeseed ref. oil 695 (695), rapeseed expeller ref. 665 (665) cottonseed ref. oil 643
(641) and palmolein 510(509).
Cotton could stay flat as demand wilts
Rajkot, June 3:
Cotton ruled steady on Monday on restricted selling and normal buying by domestic
mills. According to traders, cotton prices may not gain further as demand has come down
in some centres.
Gujarat Sankar-6 cotton traded at Rs 38,100-38,200 for a candy of 356 kg. V 797 cotton
A grade went for Rs 27,300-27,800 a candy.
Cotton ready delivery quoted at Rs 4,050-4,130 for a quintal in Punjab, Rs 3,940-3,970 in
Haryana and Rs 3,960-3,980 in Rajasthan. Kapas, or raw cotton, traded at Rs 950-1,000
for a maund of 20 kg at Rajkot and Saurashtra.
About 10,000 bales arrived in Gujarat and 28,000-30,000 bales in total across the
country. Traders said that demand weakened at higher levels. Besides, the timely arrival
of the monsoon also weighed in on the sentiment. However, overall outlook remains
positive due to the tight immediate supply position.
Meanwhile, cotton yarn exports are estimated to rise 7.7 per cent to 1,150 million kg in
the current fiscal on higher outputs and rising demand from traditional markets. The
Cotton Yarn Advisory Board has projected a 14.2 per cent increase in cotton yarn
production to 4,000 million kg in 2013-14.
Wheat trade sees output below 85 mt on
lower yield
Chennai, June 3:
Last year, Kapoor Singh of Riwasa village in Haryana’s Bhiwani district had reaped 2.5
tonnes of wheat from every hectare of his10-acre farm. This year, he has got only 1.5
tonnes.
“The crop faced adverse weather conditions in December and again in March. We have
also faced pest (yellow rust) problems, resulting in a lower harvest,” Singh said over
phone from his village.
Kapoor Singh is among many farmers in Haryana, Punjab and Uttar Pradesh who are
reporting lower wheat yield this year.
“Compared with last year, the crop is 25 per cent down in Punjab. But, last year was an
exceptional one, where everything went right with the crop,” said Raj Sud, a trader at
Khanna market in Punjab.
“The crop is similarly lower in Haryana and Uttar Pradesh too,” he said.
procurement
“In Uttar Pradesh, the Food Corporation of India has been able to procure just 5 lakh
tonnes-6 lakh tonnes for buffer stocks,” he said.
Though the Government cut its wheat production estimate to 93.62 million tonnes (mt)
from initial estimates of nearly 95 mt, traders, exporters and the milling industry say that
the output could be far lower.
Last year, production was a record 94.88 mt.
Punjab, Haryana and Uttar Pradesh contribute nearly 60 per cent to the total wheat output
in the country.
Punjab’s production this year is estimated at 11.1 mt against 14.82 mt.
“Industry estimates put the production below 85 mt. There are others who have pegged it
at 81 mt,” said a trade source, not wishing to be identified.
“We have heard farmers from Punjab telling us that their yield is at least 25 per cent
lower this year,” said M.K. Dattaraj, former president of the Roller Flour Mills
Federation of India.
Though the Food Corporation had initially fixed a target to procure 44 mt of wheat, it
then cut to 33 mt.
However, with procurement almost coming to an end, it could end up procuring around
25 mt only.
“People are saying that farmers are holding on to wheat. Have our farmers become so
resourceful to hold back wheat? Then, we need to review the Food Security Bill,” said
the trade source.
According to Tejinder Narang, a consultant with a exporting firm, if procurement has
dropped to around 25 mt, it only means a lower crop.
“The Centre should clear the air about wheat production,” he said. “The Government has
been blaming the private trade and millers for the low procurement. But our procurement
has been the usual quantity,” said Pramod Kumar, Director of Bangalore-based Sunil
Agro Foods.
“For us, it is a hand-to-mouth situation since we have not procured over 60 per cent of
requirement, thinking prices will drop. But things have taken a different turn,” said
Pramod Kumar.
Currently, wheat for milling is quoting at Rs 1,590 a quintal in New Delhi’s Lawrence
Road market, a benchmark for the country.
On the NCDEX, July contracts ruled at Rs 1,624.
“At Khanna, there is no arrival of wheat at all. No grower seems to have stock,” said Sud.
Though the Government had allowed export of an additional three million tonnes in
April, hardly three lakh tonnes have been exported so far.
“That is because our prices are higher than global prices,” said Narang.
Though the highest bid for wheat at the tender floated by MMTC to sell 50,000 tonnes
was $304 a tonne, it is considered high compared with wheat from the Black Sea region.
“Our wheat can become competitive if the rupee falls to Rs 60 against the dollar,” Narang
said. The rupee slipped to Rs 56.76/77 against the dollar on Monday, a 11-month low.
Despite fears of lower production, the country could still be left with wheat stocks well
above the buffer stock norms fixed by the Government. As on May 1, wheat stocks were
over 12 mt against a buffer stock norm of four mt and a strategic reserve norm of 2.12 mt.
These stocks are kept for distribution through ration shops and various welfare measures
of the Centre besides meeting any food emergency.
“We think the Government could soon come up with a lower production figure on wheat.
But the sooner, it will be better,” said the trade source.
84% tea sold at Coonoor auctions
Coonoor, June 3:
Some 84 per cent of the five-week low offer of 13.46 lakh kg was sold at Sale No: 22 of
Coonoor Tea Trade Association auctions.
Homedale Estate tea, auctioned by Global Tea Brokers, topped the CTC market when
Kajah Tea Co Pvt Ltd, Tirunelveli, bought it for Rs 173 a kg.
Crosshill Estate topped CTC dust market. “Our Red Dust topped at Rs 172. In all, our
three marks have got Rs 161 and more,” Crosshill Operations Head Dinesh Raju told
Business Line.
Vigneshwar Estate got Rs 165, Hittakkal Estate Rs 162 and Kannavarai Estate Rs 159. In
all, 43 CTC marks got Rs 125 and more per kg.
Among orthodox teas, Chamraj got Rs 250, Kodanad Rs 202, Kairbetta Rs 180, Havukal
Rs 176 and Highfield estate Rs 171. In all, 43 marks got Rs 125 and more for a kg.
“Orthodox leaf gained Rs 2-3 a kg. Medium and plainer CTC leaf eased up to Re 1-Rs 3.
Primary orthodox dusts gained Rs 2-5 while others eased Re 1-Rs 2. Better liquoring
CTC dusts gained Rs 2-3 while mediums and plainers lost Re 1-Rs 3”, an auctioneer said.
On the export front, Pakistan gave selective support for dust grades at Rs 78-85. The CIS
chose some grades for Rs 84-96.
Quotations held by brokers indicated bids ranging Rs 72-82 for plain leaf grades and Rs
110-150 for brighter liquoring sorts. They ranged Rs 78-84 for plain dusts and Rs 120160 for brighter liquoring dusts.
Soya prices drop on hopes of good rains
KOLKATA: Soya oil consumers can afford to smile a bit this summer. Wholesale
soyabean prices have fallen 5%-10% over the last fortnight after the met department
predicted a normal monsoon. International prices too have dropped by $110 per tonne,
leaving a bearish impact on local prices.
Sandeep Bajoria, CEO of Sunvin group, an oil consultancy firm, told ET, "A number of
factors are responsible for the declining price trend. The soyabean price is now hovering
around Rs 3,800 per quintal as compared to Rs 4,250 per quintal a fortnight ago.
Soyabean prices surged after Iran started lifting soyameal from India in good quantities.
But buying by Iran has dried down now and prices have dropped in India as well."
Two major soyabean producing countries - Argentina and Brazil - have cut the bean
prices. At present, the imported price is hovering around $1,040 per tonne compared to
$1,150 per tonne fortnight ago. India has also removed the 15% import duty on soyameal
which has further put a pressure on domestic prices. "The prediction of a normal
monsoon has also acted as a catalyst to bring down the prices," added Bajoria.
Last year, kharif soyabean production was at 126 lakh tonne covering an area of 106.5
lakh hectare. If the monsoon is normal, acreage is likely to increase by 5%-7% this year.
Sowing will begin in late June or early July. Madhya Pradesh is the leading state in
soyabean cultivation, followed by Maharashtra, Rajasthan and Uttar Pradesh.
Rajesh Agarwal, spokesperson of Soyabean Processors Association, said, "Farmers are
holding back their stocks as prices have fallen. They are keeping a close watch on the
monsoon. If the monsoon is not well, farmers will unload their stocks in the market so
that they can get good prices.
Oil prices rise on weaker dollar, North
Sea outage
Brent crude oil futures rose on Monday, supported by a weak dollar and a supply outage
in North Sea crude oil.
Oil producer Nexen confirmed its North Sea Buzzard oilfield, which supplies Forties, the
leading stream behind the Brent benchmark, was shut, supporting prices. The oilfield was
expected to return to normal by mid-week.
"I see the Buzzard field issue as leading the way with Brent pushing higher," said New
York analyst Dominick Chirichella.
Brent crude futures were $1.82 higher at $102.21 per barrel at 1:50 p.m. EDT (1950
GMT), rebounding from a slip below $100 to $99.66 earlier in the session on weak
Chinese data. That was the lowest price for Brent in one month.
The HSBC/Markit Purchasing Managers' Index (PMI) for China, the world's second
largest oil consumer, fell to 49.2 in May, showing a contraction in manufacturing for the
first time in seven months.
Weak U.S. manufacturing data that showed activity contracted in May for the first time in
six months crushed the U.S. dollar and supported higher oil prices.
U.S. crude oil futures were trading $1.50 higher at $93.47 per barrel.
The dollar index against a basket of currencies was trading 1 percent lower.
Oil is priced in dollars and when the dollar sinks, oil becomes less expensive for holders
of other currencies. The weak dollar also boosted gold, which jumped 2 percent.
Weak data served a dual supportive role. It pushed the dollar lower and reinforced the
idea that the U.S. Federal Reserve would keep its quantitative easing policy.
"People are no longer rooting for good data, they're rooting for bad data. It's this idea that
if the data is bad enough that the Fed will still be there. It distorts the whole field of
investing," said Walter Zimmermann, chief technical analyst with brokerage United
ICAP.
Analysts said slow demand growth with robust supplies would cap gains in oil prices.
Record high U.S. supplies and a weak global economic outlook has kept a lid on prices.
Brent crude was rising off of three previous sessions of losses, but was still only able to
touch the 10-day moving average on the high end of the session. Brent has fallen for four
straight months from a high of $119.17 in February.
U.S. crude maintained itself above the 200-day moving average and was on track for its
biggest one-day percentage gain in one month.
But prices are still rangebound and all the market was doing was giving back Friday's
losses, Zimmermann said.
"It's not as if it's breaking new ground to the upside."
Oil was also supported by flooding across Europe, which halted barges along the river
Rhine, and by supply worries after reports that Iran aimed next year to start a nuclear
reactor, which the West fears could arm an atomic bomb.
Markit's Eurozone Manufacturing Purchasing Managers' Index showed on Monday a
downturn in manufacturing eased last month but remained widespread as falling prices
for factories' goods failed to drum up new business.
Oil bounces back from $100 on North Sea
outage
Brent crude oil dipped briefly on Monday below $100 a barrel for the first time in a
month on demand worries after Chinese factory data pointed to slowing momentum in
the world's second-biggest oil consumer.
But the losses were later outweighed by a problem with the North Sea Buzzard oilfield,
which supplies Forties, the leading stream behind the Brent benchmark.
Oil was also supported by flooding across Europe, which halted barges along the river
Rhine, and by supply worries after reports that Iran aimed next year to start a nuclear
reactor, which the West fears could arm an atomic bomb.
Brent crude futures fell 73 cents to a low of $99.66, its lowest since May 2, before
recovering sharply to trade around $101.69 by 1225 GMT, up $1.30. Brent has fallen for
four straight months from a high of $119.17 in February.
U.S. oil rose 80 cents to $92.77.
"I see the Buzzard field issue as leading the way with Brent pushing higher," said New
York analyst Dominick Chirichella, but added he was "cautiously bearish" on oil:
"Global demand growth is still looking like it is turning to the downside."
The HSBC/Markit Purchasing Managers' Index (PMI) for China fell to 49.2 in May,
showing a contraction in manufacturing for the first time in seven months as both
domestic and external demand softened.
"There is plenty of oil in the market and no sign of more demand," said Carsten Fritsch,
senior oil analyst at Commerzbank in Frankfurt.
The China figures are more evidence economic growth there is slowing. The official PMI
for the non-manufacturing sector fell to 54.3 in May, the lowest since September last
year. The government's official manufacturing PMI, released on Saturday, remained close
to 50.
Markit's Eurozone Manufacturing Purchasing Managers' Index showed on Monday a
downturn in manufacturing eased last month but remained widespread as falling prices
for factories' goods failed to drum up new business.
But the economic news was balanced by some supply worries.
The U.N. nuclear agency chief said on Monday no progress had been made towards
clarifying concerns about Iran's nuclear programme, and that talks with Tehran had for
some time been "going around in circles".
Israel, which has bombed such sites before, may try to stop Iran's nuclear plant being
completed, a move that could trigger a wider conflict and jeopardise the security of
Middle East oil supplies.
Corn planting advances ahead of another
Midwest deluge
Farmers continue to struggle to finish corn planting, epitomizing what has been a season
already plagued with excessive rain, snow and cold. With 91 percent of corn and 57
percent of soybeans planted as of Sunday and more rain in the forecast, the progress at
the tail-end of planting will likely continue to inch along.
Corn: 91 percent planted, 74 percent emerged
Storms drenched fields across the Midwest last week, and few states were able to make
substantial progress in planting corn as a result.
In Iowa, the nation’s top corn-producing state, corn planting crept ahead by 3 percentage
points to 88 percent. This is one of the lower percentages reported by this week’s Crop
Progress report. Reuters reports that Iowa has received the most spring rainfall in 141
years. From March through May, more than 17 inches of rain fell across the state.
Corn conditions show just how much of an impact the wet weather has made. With 11
percent of its corn in poor to very poor condition, Iowa has tied Colorado with having the
worst corn conditions in the country.
Overall, 63 percent of the nation’s corn is in good to excellent condition. This is 9
percentage points lower than the corn conditions reported this time in 2012.
Soybeans: 57 percent planted, 31 percent emerged
Consequently, like corn, soybean planting has been dramatically slowed by spring
storms. Iowa corn planting crawled to 44 percent, compared to 40 percent last week.
Planting in Missouri, another state inundated by precipitation last week, inched ahead by
6 percentage points to 36 percent.
Thirty-one percent of soybeans are now emerged, which is down from the five-year
average of 49 percent. This is the slowest planting rate for soybeans since 1996, when
farmers had seeded 35 percent of their crop by the end of May.
Check out the Crop Progress report here.
Meteorologists expect occasional showers over the next 10 days, with two more rounds
of rain forecast in this active weather pattern.
Reuters reports that the “slow seeding of both corn and soybeans this spring has raised
concerns about reduced yields at the autumn harvest as key phases of crop development
will probably be delayed until the heat of the summer. A late planting also increases the
possibility that an early frost this fall would inflict further damage on the crops.”
Farmers advised to timely prepare fields
for Kharif crops
The Met Office has advised the farmers of upper parts of the country to ensure timely
preparation of their fields for the next Kharif crops. In its 10-day farmers' advisory, the
office says that harvesting and threshing of wheat crop in most agricultural areas of the
country have been completed.
It said that keeping in view the prevailing dry weather spell with soaring daytime
temperature, the farmers of cotton and sugarcane areas should irrigate their crops as per
need. "Expected rise in day time temperature and heat waves during most of the days in
the decade may increase water discharge in the river and canals of the country, which
may ultimately rise canal water for standing Kharif crops in the coming days," the office
said.
The office urged the farmers of rain-fed areas obtaining crop water through tube-wells to
schedule the irrigation in line with the forecast weather. In Punjab and Khyber
Pakhtunkhwa weather is expected to remain mainly very hot and dry in most parts till
June 10. However, rainfall/thunderstorm is likely at isolated places in upper parts during
June 3 and 4, it added.
In Sindh and Balochistan, mainly very hot and dry weather has been forecast for the next
10 days. For Gilgit-Baltistan and Kashmir, the office forecast mainly dry weather.
However, rainfall/thunderstorm is expected at isolate places during the period.
Khyber Pakhtunkhwa government urged
to take steps for wheat procurement
Chairman, Qaumi Watan Party (QWP), Aftab Ahmad Khan Sherpao has asked the
Khyber Pakhtunkhwa government to take drastic measures for the procurement of wheat
in order to prevent wheat floor (Atta) crisis in the province. In a statement here on
Saturday, he said that imminent danger of wheat crisis was brewing owing to the
negligence of the previous government, adding that corrective and timely efforts were
required to save the province from this situation.
He said wheat requirement of the province was approximately 400,000 maunds but the
erstwhile government procured only 250,000 maunds, which was shorter than the needs
of the province. He said Punjab had procured more stock of the wheat than its
requirements.
He resented that if the early steps were not taken the people would greatly suffer in near
future, adding the people would run from pillar to post for the flour. QWP Chief
contended that if the previous provincial government had ensured the necessary
procurement of the wheat in time, it had not only met the demands of the people but also
earned valuable worth Rs 5 billion. He said the province was already bearing the burden
of Afghan refugees whose basic needs had also been on the shoulder of the province. He
called upon the KPK government to utilise the resources for the procurement of the wheat
from local, national and international market, adding that in case of non-availability of
funds, it should arrange resources from commercial banks.
Oryza U.S. Rough Rice Recap – Thin Trading as Price Ideas Hold Steady; New
Crop Planting Nearly Complete
Jun 03, 2013
The U.S. cash rice market saw thin trade activity today after a few buyers and sellers
came off of their price ideas to make some trades. However, most bids and offers remain
roughly $0.50 per cwt (about $11 per ton) apart.
As of today, offers from farmers could still be found around $16.25-$16.50 per cwt fob
farm (about $358-$364 per ton) for 50 pounds of whole rice or better for June shipment
while offers from resellers were unchanged as similar levels.
Bids from some mills increased to around $15.15 per cwt (about $334 per ton) for June
delivery which continues to generate near zero selling interest while bids from smaller
mills and exporters could still be seen around $16.00 per cwt (about $353 per ton) for
June delivery although there were more reports of rice trading around $16.10 per cwt
(about $356 per ton) for June delivery.
In the meantime, the USDA estimated that as of June 2nd, 97% of the U.S. rice crop had
been planted compared to 90% a week ago and 100% this week last year. As of now, rice
plantings are 95% complete in Arkansas, 99% in California, 100% in Louisiana, 92% in
Mississippi, 9% in Missouri, and 100% in Texas.
The USDA also estimated that 88% of the U.S. rice crop had emerged compared to 76%
a week ago and 94% this week last year. As of now, rice has emerged on 86% of the crop
in Arkansas, 85% in California, 97% in Louisiana, 72% in Mississippi, 96% in Missouri,
and 94% in Texas.
So far, the USDA considers 39% of the US crop in very poor to fair condition, including
49% of the crop in Arkansas, 5% in California, 43% in Louisiana, 36% in Mississippi,
49% in Missouri, and 60% in Texas.
Barge traffic on the Arkansas River has been suspended due to high water levels and
analysts note that rice exporters should expect major delays. The towing vendor on the
Arkansas River expects that navigation should resume on June 8th.
Oryza Rice Currency Analysis for Today – U.S. Dollar Slides on Disappointing
Economic Data; Brazil Real Up 0.7%
Jun 03, 2013
U.S. dollar index was down -0.87% from the open today, when it traded at 82.666 at the
close.
Euro was +0.56% stronger today by the close, trading around 1.3070 by end of day,
mostly due to a weak dollar on disappointing U.S. manufacturing data.
Thai baht closed the day -0.05% weaker, trading at 30.35 at the close of business today.
Indian rupee was -0.46% weaker at the close today when it traded at 56.7650.
Brazilian real was +0.68% stronger than the open at today’s close, when it ended at
2.1267 reais per dollar.
Pakistan rupee was +0.01% stronger at the close today, when it traded at 98.5070.
Vietnamese dong was +0.04% stronger from the 21,013 dong per dollar open, at the close
of business today when it traded at 21,005.
Mexican peso was +0.44% stronger, when it traded at 12.7533 pesos per dollar by the
close of business today.
Chinese yuan was +0.05% stronger today, when it traded by close at 6.1313.
Argentine peso was -0.06% weaker from the open today at the close, when it traded at
5.2875 pesos per dollar.
Oryza Afternoon Recap – Chicago Rough Rice Futures Shoot Higher as
Grains Provide Supportive Backdrop
Jun 03, 2013
Chicago rough rice futures for July delivery settled 16.5 cents per cwt (about $4 per ton)
higher at $15.460 per cwt (about $341 per ton). Rough rice futures shot higher in early
trading but later pulled back from session highs to close just above a point that had acted
as nearby technical resistance - the closely watched 50-day moving average, which was
noted at $15.419 per cwt (about $340 per ton) today. Some traders expect that today’s
close could trigger additional technical buying interest tomorrow, as well as cause
speculative short covering; the latest CFTC commitment of traders report were net short
3,000 contracts. Oher grains were mostly supportive today, with corn being the exception
falling almost 1% on weak export demand and steady interior basis levels. U.S. grains
finished mostly higher today; soybeans finished the day about 1.5% higher at $15.3250
per bushel; wheat finished about 0.5% higher at $7.0975 per bushel; and corn finished the
day about 0.9% lower at $6.5675 per bushel.
U.S. stocks were mixed in choppy trading Monday as investors digested a pair of weakerthan-expected economic reports that suggested the Fed's bond-buying program would
remain intact. The Dow Jones Industrial Average held modest gains after plunging more
than 200 points in the previous session. The S&P 500 struggled for direction, while the
Nasdaq declined. Among key S&P sectors, utilities led the gainers, while banks lagged.
Stocks ended the May with big losses on Friday, but major averages still logged monthly
gains. Traders cited month-end rebalancing as one of the reasons for Friday's selloff,
investors had been nervous over fears that the Federal Reserve would start curtailing its
bond-buying program. U.S. stock markets are currently trading up about 0.5%, gold is
trading up about 1.4%, crude oil is currently trading up about 1.6%, and the U.S. dollar is
trading about 1% lower at about 1:30pm Chicago time.
Turning to the daily continuation chart of Chicago rough rice futures for July delivery,
prices shot higher immediately upon the open of floor trading in Chicago this morning.
The market quickly broke through nearby technical resistance, seen around $15.410 per
cwt (about $340 per ton), provided by the 50-day moving average. Although prices
pulled back from session highs nearing $15.650 per cwt (about $345 per ton) they did
manage to close above the previously mentioned point of resistance. This fact may trigger
additional technical buying interest tomorrow, which could trigger buy stops as specs
look to exit losing short positions. Today’s action is seen as a bullish development for the
market and provides a positive forecast for tomorrow’s trade direction. Prices have now
broken into bullish territory, between the 20-day moving average and the upper Bollinger
band. Today’s trading range is noted as $15.280-$15.640 per cwt (about $337-$345 per
ton).
Friday, there were 1,472 contracts traded, down from 1,795 contracts traded on Thursday.
Open interest – the number of contracts outstanding – on Friday fell by 86 contracts to
11,460.
Oryza Afternoon Recap – Chicago Rough Rice Futures Shoot Higher as Grains
Provide Supportive Backdrop
Jun 03, 2013
Chicago rough rice futures for July delivery settled 16.5 cents per cwt (about $4 per ton)
higher at $15.460 per cwt (about $341 per ton). Rough rice futures shot higher in early
trading but later pulled back from session highs to close just above a point that had acted
as nearby technical resistance - the closely watched 50-day moving average, which was
noted at $15.419 per cwt (about $340 per ton) today. Some traders expect that today’s
close could trigger additional technical buying interest tomorrow, as well as cause
speculative short covering; the latest CFTC commitment of traders report were net short
3,000 contracts. Oher grains were mostly supportive today, with corn being the exception
falling almost 1% on weak export demand and steady interior basis levels. U.S. grains
finished mostly higher today; soybeans finished the day about 1.5% higher at $15.3250
per bushel; wheat finished about 0.5% higher at $7.0975 per bushel; and corn finished the
day about 0.9% lower at $6.5675 per bushel.
U.S. stocks were mixed in choppy trading Monday as investors digested a pair of weakerthan-expected economic reports that suggested the Fed's bond-buying program would
remain intact. The Dow Jones Industrial Average held modest gains after plunging more
than 200 points in the previous session. The S&P 500 struggled for direction, while the
Nasdaq declined. Among key S&P sectors, utilities led the gainers, while banks lagged.
Stocks ended the May with big losses on Friday, but major averages still logged monthly
gains. Traders cited month-end rebalancing as one of the reasons for Friday's selloff,
investors had been nervous over fears that the Federal Reserve would start curtailing its
bond-buying program. U.S. stock markets are currently trading up about 0.5%, gold is
trading up about 1.4%, crude oil is currently trading up about 1.6%, and the U.S. dollar is
trading about 1% lower at about 1:30pm Chicago time.
Turning to the daily continuation chart of Chicago rough rice futures for July delivery,
prices shot higher immediately upon the open of floor trading in Chicago this morning.
The market quickly broke through nearby technical resistance, seen around $15.410 per
cwt (about $340 per ton), provided by the 50-day moving average. Although prices
pulled back from session highs nearing $15.650 per cwt (about $345 per ton) they did
manage to close above the previously mentioned point of resistance. This fact may trigger
additional technical buying interest tomorrow, which could trigger buy stops as specs
look to exit losing short positions. Today’s action is seen as a bullish development for the
market and provides a positive forecast for tomorrow’s trade direction. Prices have now
broken into bullish territory, between the 20-day moving average and the upper Bollinger
band. Today’s trading range is noted as $15.280-$15.640 per cwt (about $337-$345 per
ton).
Friday, there were 1,472 contracts traded, down from 1,795 contracts traded on Thursday.
Open interest – the number of contracts outstanding – on Friday fell by 86 contracts to
11,460.
Bangladesh Planning to Grow, Export Fragrant Rice
Jun 03, 2013
Bangladesh is keen to grow fancy rice such as Thailand’s jasmine rice for exports.
Bangladesh's Agriculture Minister told local sources that the government is planning to
expand the collaboration with a Philippines-based seed company for the supply of fancy
rice seeds.
According to a representative of the seed company, the Bangladesh government is
looking for rice with high amylase content. Rice with high amylase content is usually
long grain, less sticky and is among the least harmful rice for diabetics. Bangladesh is
also planning to grow fragrant rice such as Thailand’s jasmine rice for exports, the seed
company representative told local sources.
Bangladesh is nearing rice sufficiency due to bumper harvests in the last three years. The
country produces about 34.2 million tons, against a consumption of around 34.7 million
tons. Last year, Bangladesh lifted a four-year-ban on exports of fragrant rice to help
farmers get better returns. However, the export of non-fragrant rice remains banned due
to price fluctuations.
Thailand NAAC to Probe Alleged Irregularities in Government Rice Sales
Jun 03, 2013
The National Anti-Corruption Commission (NAAC) of Thailand will conduct a probe
over allegations that the government sold rice from its stockpile to a private trader at
prices of around 5,700 baht (about $187 per ton), almost a third of the purchase price of
up to 15,000 baht per ton (about $492 per ton).
The opposition leader has claimed that the alleged sales were made to a private trader
close to the former Prime Minister Thaksin Shinawatra, and the rice was soon sold-off to
another trader at around 12,000 baht per ton (about $394 per ton). The opposition leader
claimed that the sales took place with the knowledge of the Commerce Minister, and told
local sources that a probe will either kill the rice mortgage program or bring down the
current government headed by Yingluck Shinawatra.
Under the rice mortgage program, the Thai government purchases rice from farmers at up
to 15,000 baht per ton (about $492 per ton) for white paddy rice and up to 20,000 baht
per ton (about $656 per ton) for jasmine paddy rice, which are much above market prices,
say local traders.
Vietnam January - May 2013 Rice Exports Reach 2.79 Million Tons; Up 9% from
Last Year
Vietnam has exported around 2.79 million tons of rice in the first five months of 2013,
which is up about 9% from around 2.55 million tons of rice exported in same period last
year, according to the Vietnam food Association (VFA). However, average rice export
prices continued to decline for the sixth month in a row in May, and average prices in
January – May 2013 of around $435 per ton (FoB) are down about 9% from around $476
per ton (using historical exchange rates) recorded in during January – May 2012.
Month-on-month, Vietnam’s rice exports in May 2013 stood at around 648,359 tons,
down about 7% from around 700,710 tons exported in April 2013, and about 18% lower
than around 788,269 tons exported in May 2012. The average export price in May 2013
stood at around $422 per ton, down about 2% from aorund $429 per ton in April 2013,
and down about 4% from around $438 per ton (using historical exchange rates) seen in
May 2012.
Vietnam was the second largest rice exporter in 2012, with around 7.7 million tons of rice
exports. This year, Vietnam is targeting to increase rice exports by around 4% to around
8 million tons.
Vietnam Rice Sellers Increase Some of Their Quotes Today
Jun 03, 2013
Vietnam rice sellers increased their quotes for 5% broken rice by about $5 per ton to
about $375 - $385 per ton today. Other Asia rice sellers kept their quotes mostly
unchanged.
5% Broken Rice
Thai 5% rice is quoted around $510 - $520 per ton, about a $135 per ton premium over
Viet 5% rice shown around $375 - $385 per ton, up about $5 per ton from Friday.
Indian 5% rice is quoted around $440 - $450 per ton, about a $5 per ton premium to Pak
5% rice shown around $435 - $445 per ton.
25% Broken Rice
Thai 25% rice is quoted about $495 - $505 per ton, about a $145 per ton premium over
Viet 25% rice shown around $350 - $360 per ton.
Indian 25% rice is quoted about $390 - $400 per ton, about a $10 per ton premium over
Pak 25% rice shown around $380 - $390 per ton.
Parboiled Rice
Thai parboiled rice is quoted around $540 - $550 per ton.
Indian parboiled rice is quoted around $425 - $435 per ton, about $20 per ton discount to
Pak parboiled rice shown around $445 - $455 per ton.
100% Broken Rice
Thai broken rice, A1 Super, is quoted around $485 - $495 per ton, about a $145 per ton
premium over Viet broken rice shown around $340 - $350 per ton.
Indian broken sortexed rice is quoted about $315 - $325 per ton, about $25 per ton
discount to Pak broken sortexed rice indicated around $340- $350 per ton.
Oryza Overnight Recap – Chicago Rough Rice Futures Seen Higher as Grains Show
Strength Overnight
Jun 03, 2013
Chicago rough rice futures for July delivery were paused 7 cents per cwt (about $2 per
ton) higher at $15.365 per cwt (about $339 per ton) as of 8:15 a.m. Chicago time. The
other grains are seen higher during this morning break ahead of floor trading in Chicago:
soybeans are currently trading about 1.8% higher, wheat is up about 0.9%, and corn is
seen about 1% higher.
U.S. stock index futures pointed to a higher open on Wall Street on Monday as investors
look ahead to key economic data due to be unveiled throughout the week, culminating in
the release of non-farm payrolls data on Friday. The week starts with ISM manufacturing
data on Monday, along with truck sales and construction spending. April trade data is due
on Tuesday, followed on by non-manufacturing ISM for May on Wednesday, as well as
factory order figures for April and the ADP employment report. Friday brings the
closely-watched monthly employment report, expected to show that non-farm payrolls
were up almost 165,000 in May, according to a Reuters poll, with the unemployment rate
unchanged at 7.5%. Stocks ended May with big losses on Friday, with the Dow and S&P
500 posting their worst one-day drops since mid-April, but major averages still logged
monthly gains. U.S. stock index futures are currently trading up about 0.4%, gold is
currently trading up about 0.2%, crude oil is seen 0.5% higher, and the U.S. dollar is
currently trading about 0.2% lower at 8:15 a.m. Chicago time.
Brazil Researchers Find High Arsenic Content in Rice
Jun 03, 2013
Researchers from Brazil’s University of São Paulo have found excessive arsenic content
in some samples of rice grown in Brazil. According to the university scientist leading the
study, Bruno Lemos Batista, arsenic levels of up to 0.222 micrograms per gram of rice
was found in some samples of Brazilian rice, which could potentially cause a health
hazard.
Bruno Lemos Batista says that the government should develop standards for arsenic in
rice as there is very little awareness of the dangers to health due to arsenic in rice and
other food items in Brazil. He adds that soil contamination with unrestricted use of
pesticides may cause higher arsenic content in rice.
Long-term exposure to high levels of arsenic may affect lungs, skin, heart and bladder.
High arsenic content is also found in several other food items including chicken and
meat. However, rice tends to absorb more arsenic from soil and water compared to other
crops. The USFDA is studying over 1,200 rice samples in its attempt to develop
standards of arsenic in rice, but says that available data about arsenic in rice does not
show any potential risk to human health. The USFDA had initially targeted to complete
the study by the end of 2012.
Rice is a staple of the Brazilian diet, and the per capita consumption of rice in Brazil
stands at around 45 kilograms per person per year, according to the International Rice
Research Institute (IRRI).
Philippines NFA Asks Import Surveyors to Screen China Rice for Cadmium
Jun 03, 2013
The Philippines National Food Authority (NFA) has asked import surveyors to equip
themselves to screen rice imports for excessive cadmium, and prevent the entry of
cadmium-laced rice in to the Philippines. The advisory comes after some government
officials said last week that they do not have the technology or equipment to test rice for
cadmium, according to local sources.
The USDA says that up to 600,000 tons of rice is shipped illegally into the Philippines
each year due to the high imports tariffs levied by the government under the 2013 ricesufficiency target. This raises the possibility of cadmium laced rice entering the
Philippines as the country is close to the Guangzhou province in China where excessive
cadmium was detected in around 44% of food samples last month.
According to the NFA, China can export around 25,000 tons of rice to the Philippines
this year under trade agreements, but so far no rice imports from China have taken place
and no importer has applied for rice imports from China as well. Last week, the
Philippines Department of Agriculture (DA) said that it will help the Customs screen rice
imported from China for cadmium content at the entry points.
Iran Seeks Rice Processing Technology from India
Jun 03, 2013
A trade delegation from Iran is in talks with experts from India’s rice industry over
supply of rice processing machinery from India. According to sources, the Consulate
General of Iran and All India Association of Industries are holding a trade event at
India’s commercial capital Mumbai, in which businessmen from Iran evinced interest in
importing rice machinery from India.
Iran is a major importer of rice from India. Iran produces about 1.5 million tons of rice
annually, but imports almost the same amount to meet domestic demand of around 2.8
million tons. In 2012-13, Iran imported about 1.3 million tons of rice, with India
accounting for over 67% of all rice imports. Iran failed to meet its rice-sufficiency goal in
2012-13 and is now targeting to achieve rice sufficiency by 2016.
Separately, India is planning to invest around $100 million in developing infrastructure in
Iran's southeastern Chabahar port. India’s External Affairs Minister says that the move is
expected to help India goods reach other markets such as Afghanistan and countries in
Central Asia.
Corn Drops as Seeding Nears Completion
in U.S., Boosting Outlook
Corn tumbled for a second day as planting neared completion in the U.S., the world’s
largest grower, easing concern that acreage would be smaller than predicted by the
government. Wheat and soybeans fell.
Corn for delivery in December lost as much as 1.3 percent to $5.53 a bushel on the
Chicago Board of Trade, and was at $5.5375 at 12:04 p.m. Singapore time. Soybeans for
July fell 0.7 percent to $15.2175 a bushel.
About 91 percent of the corn crop was planted as of June 2, up from 86 percent a week
earlier, the U.S. Department of Agriculture said in a report yesterday. The nation will
harvest a record 359.2 million metric tons, the USDA said May 10.
“When we see an improvement in the planting progress, prices do come down,” Joyce
Liu, an analyst at Phillip Futures Pte., said from Singapore. “If the crop didn’t get planted
soon enough, we would have expected a reduction in acreage.”
Wheat for July delivery lost 0.9 percent to $7.025 a bushel in Chicago. Prices of U.S.
wheat may fall should more countries delay or cancel purchases after an unauthorized,
genetically modified strain was found in Oregon, Abdolreza Abbassian, a senior
economist at the United Nations’ Food & Agriculture Organization, said in an interview
yesterday.
DJ Soybean Futures Rise on Tight Supplies, Planting Concerns
--Tight near-term supply situation is boosting soybean prices
--Outlooks for soy supplies to remain tight through the summer
--Planting delays stoke concerns about the crop
By Andrew Johnson Jr.
CHICAGO--U.S. soybean futures are trading higher Monday, extending Friday's rally as
traders focus on tight domestic stockpiles of the oilseed and concerns about plantings
delays.
Chicago Board of Trade soybeans for July delivery, the mostly actively traded contract,
gained 21 3/4 cents, or 1.4%, to $15.31 3/4. November soybeans gained 16 3/4 cents, or
1.3%, to $13.21.
A tight near-term supply situation is boosting soybean prices, with a behind-schedule
planting pace adding support to push prices higher as well.
"The mindset of the market is to buy futures," said Rich Nelson, director of research at
brokerage Allendale Inc. in McHenry, Ill.
Outlooks for soy supplies to remain tight through the summer, with planting delays
pushing back the availability of new supplies from domestic harvests until later in
autumn are buoying prices, Mr. Nelson said.
The market has shown signs that through high futures prices and strong basis levels it can
accomplish the task of cooling demand or encouraging buyers to purchase cheaper
supplies that will be more readily available later in the year.
However, a planting pace that started well behind schedule due to wet and unseasonably
cold weather across much of the Farm Belt is offering price support. The delays are
stoking concerns about the crop, as a later-planted crop is considered at greater risk of
suffering damage from extreme summer heat, or from an early frost in the fall.
"Despite the potential for increased soybean acres due to corn planting delays, we would
argue that speculative traders are securing the soy complex based on it having the greatest
acres yet to plant," analysts at advisory firm AgResource Company wrote in a note to
subscribers.
Private weather forecaster Telvent DTN forecast wet conditions will continue to delay
soybean planting and any remaining corn planting in the Midwest. Some replanting may
be needed in areas of excessive rainfall, Telvent added in the forecast.
On tap for Monday, the U.S. Department of Agriculture is scheduled to release its weekly
export inspections report at 11 a.m. EDT, and its weekly crop progress reports at 4 p.m.
EDT.
DJ U.S. Corn Futures Fall, Reverse Gains on Technical Selling
CHICAGO--U.S. corn futures are trading lower Monday, reversing early price gains on
signs of chart based technical weakness.
"The market is having a technical reaction to the July contract's inability to push above
prior highs on technical charts," said Joe Vaclavik, president of brokerage Standard Grain
Inc. in Chicago.
The inability of the market to attract buying once futures traded up against highs from
March was viewed as a negative signal for chart based traders.
"A lot of traders holding weaker bets that prices would push higher are getting out of the
market," Mr. Vaclavik said. There is nothing new that is impacting market fundamentals,
but traders are cautious ahead of the first glimpse of condition rating from the U.S.
Department of Agriculture this afternoon, he added.
Market watchers said large speculative funds rolling out of July contracts added to the
selling pressure.
"The fund roll helped defuse buying in the market," said Art Liming, futures specialist
with Citigroup Global Markets Inc. in Chicago.
Wheat futures dropped in unison with corn, with traders taking profits on recent gains.
Corn and wheat often trade in unison, as both are used as feed in livestock rations.
Chicago Board of Trade July corn is down 16 1/2 cents, or 2.5% at $6.45 1/2 a bushel,
and July wheat was down 8 1/4 cents, or 1.2%, at $6.97 1/4.
DJ U.S. Cash Corn, Soy Basis Stabilize; Processors Acquire Supplies
CHICAGO--Grain elevators across the U.S. heartland aren't reporting any major change
in cash basis levels for both corn and soybeans.
Cash basis levels are off the peak in prices witnessed previously, but haven't displayed
much deterioration in recent days.
The firm prices are a signal that grain processors want to make sure they have adequate
supply coverage through the summer, said Dave Marshall, a grain marketing adviser with
TCFG LLC in Nashville, Ill.
Corn and soybean processors still want to buy available supplies for sale, but are buying
just enough supply to meet current demand, as the potential for a record crop opens the
door for lower prices down the road.
The uncertainty of 2013 corn and soybean production due to adverse spring weather has
made grain traders a little nervous as buyers brace for tight supplies to linger further into
the fall harvest season, Mr. Marshall said.
In Decatur, Ill., a major grain processing area, cash basis for corn was quoted at 57 cents
over July Chicago Board of Trade futures Monday, while the soy basis was quoted at 65
cents over July futures.
DJ U.S. Grain, Soy Stay Mixed; Soybeans Rise on Tight Supplies
CHICAGO--U.S. grain and soybean futures ended mixed, with soybean prices staying
firm on tight supplies and worries about planting delays.
Soybeans were boosted to one-week highs as a tight near-term supply situation coupled
with a behind-schedule planting pace provided enough support to keep prices
underpinned, analysts said.
Corn futures fell Monday, reversing early gains as traders shed bullish bets on prices
rising higher amid negative chart-based price signals and hedge-related selling. Wheat
futures finished at a three-week high Monday, with uncertainty about U.S. production
and planting delays buoying prices.
With futures yet to settle, Chicago Board of Trade July soybeans were up 22 1/2 cents, or
1.5%, at $15.32 1/2 a bushel, July corn was down 6 1/4 cents, or 0.9%, at $6.55 3/4, and
July wheat was up 3 1/4 cents, or 0.5%, at $7.08 3/4.
DJ Soybean Futures Boosted by Tight Supplies, Planting Delays
--Soybean futures climb to more than one-week highs
--Heavy selling pressure seen in corn futures
--Wheat futures settle at three-week high
CHICAGO--U.S. soybean futures climbed to more than one-week highs Monday,
rallying on tight domestic stockpiles of the oilseed and concerns about plantings delays
across the Farm Belt.
Chicago Board of Trade soybeans for July delivery, the most actively traded contract,
finished up 22 1/2 cents, or 1.5%, at $15.32 1/2 a bushel. The November soybean
contract settled up 21 1/4 cents, or 1.6%, to $13.25 1/2.
A tight near-term supply situation gave soybean prices a lift, with a behind-schedule
planting pace adding support to push prices higher as well.
Grain elevators across the U.S. heartland aren't reporting any major change in cash prices
for physical supplies of soybeans, but firm prices continue to signal that grain processors
want to make sure they have adequate supply coverage through the summer, said Dave
Marshall, grain marketing adviser at advisory firm TCFG LLC in Nashville, Ill.
A planting pace that started well behind schedule due to wet and unseasonably cold
weather across much of the Farm Belt continues to offer price support. The delays are
stoking concerns about the crop, as later-planted soybeans are considered at greater risk
of suffering damage from extreme summer heat, or from an early frost in the fall.
Rains over the weekend slowed planting in the southern and eastern Midwest, and rains
should quickly return to the western Midwest Tuesday and Wednesday, which will
prevent any significant drying or a notable increase in planting, private weather forecaster
MDA Weather Service said in a midday weather forecast.
"When you see weather keeping farmers out of the fields, everyone gets a little nervous,"
Mr. Marshall said.
U.S. corn futures settled lower Monday, reversing early gains as traders shed bullish bets
on prices rising higher amid negative technical signals.
Heavy selling pressure was seen in corn futures, with the inability of the spot contract to
push through recent highs attracting hedge-related selling and speculative chart-based
weakness spurring profit-taking.
Corn also was pressured by traders' views that Midwest rains have evolved from delaying
plantings to being a benefit for soils stressed by a historic drought last year, said John
Kleist, senior analyst with Ebottrading.com in Lakemoor, Ill.
CBOT corn for July delivery, the most actively traded contract, finished down 6 1/4
cents, or 0.9%, at $6.55 3/4 a bushel. The December contract settled down 7 1/4 cents, or
1.3%, to $5.60.
U.S. wheat futures settled at a three-week high Monday, with uncertainty about U.S.
production and planting delays overshadowing concerns about the discovery of a
genetically modified wheat strain in Oregon.
Wheat prices were supported by concerns about the health of wheat crops in the southern
U.S. Plains and planting delays for spring wheat crops in the northern Plains. The crop
concerns took on significance in the market, as traders are taking a wait-and-see approach
on the impact of the detection of GMO wheat on U.S. export potential.
July wheat futures ended up 3 1/4 cents, or 0.5%, at $7.08 3/4 a bushel at the Chicago
Board of Trade. Kansas City Board of Trade July wheat climbed 1/2 cent, or 0.07%, to
$7.51 1/2 a bushel. MGEX July wheat finished up 3 cents, or 0.4%, at $8.23 a bushel.
DJ Rains Hinder Progress of U.S. Corn, Soybean Plantings--USDA Report
CHICAGO--U.S. farmers made small strides in planting corn and soybeans last week as
storms across the Farm Belt kept fields soggy and provided little opportunity to get seeds
in the ground.
The planting of the U.S. corn crop was 91% complete as of Sunday, up from 86% a week
earlier and below the five-year average of 95% for that time of year, according to a report
Monday by the U.S. Department of Agriculture.
The soybean crop was 57% planted as of Sunday, up from 44% a week earlier and behind
the average of 74% for that time of year, according to the USDA.
The slower-than-normal pace of plantings has fueled concerns that U.S. farmers will
plant less corn than the USDA had estimated earlier, reducing the size of this year's crop.
Some farmers will switch to planting soybeans, which have a later growing season, while
others will accept insurance payments that compensate them when they are unable to
plant their crops on schedule.
The most progress in the past week in corn plantings came in states in the eastern Corn
Belt like Ohio and Indiana, where farmers had a few more days of dry conditions than in
the western Corn Belt, according to the USDA report.
Planting was 98% complete in Ohio as of Sunday, up from 89% a week earlier and ahead
of the average of 95% for that time of year.
The USDA also provided its first ratings of the condition of this year's corn crop. The
agency said 63% of the crop was in good-to-excellent condition as of Sunday, compared
with 72% at the same time last year.
DJ UPDATE: Rains Hinder Progress of U.S. Corn, Soybean Plantings -- USDA
Report
--The planting of the U.S. corn crop was 91% complete
--63% of the corn crop was in good-to-excellent condition
--The soybean crop was 57% planted as of Sunday
(Adds analyst quotes and details throughout.)
By Andrew Johnson Jr.
CHICAGO--U.S. farmers made small strides in planting corn and soybeans last week as
storms across the Farm Belt kept fields soggy and provided little opportunity to get seeds
in the ground.
The planting of the U.S. corn crop was 91% complete as of Sunday, up from 86% a week
earlier and below the five-year average of 95% for that time of year, according to a report
Monday by the U.S. Department of Agriculture.
The soybean crop was 57% planted as of Sunday, up from 44% a week earlier and behind
the average of 74% for that time of year, according to the USDA.
There are 8.55 million acres of corn still unplanted as of Sunday, said Jerry Gidel, analyst
with advisory firm Rice Dairy in Chicago. "The problem is over 50% of that unplanted
acreage is in northern areas of Iowa, North Dakota, Minnesota and Wisconsin that are
vulnerable to shorter growing seasons," Mr. Gidel said.
The slower-than-normal pace of plantings has fueled concerns that U.S farmers will plant
less corn than the USDA had estimated earlier, reducing the size of this year's crop. Some
farmers will switch to planting soybeans, which have a later growing season, while others
will accept insurance payments that compensate them when they are unable to plant their
crops on schedule.
The most progress in the past week in corn plantings came in states in the eastern Corn
Belt like Ohio and Indiana, where farmers had a few more days of dry conditions than in
the western Corn Belt, according to the USDA report.
Planting was 98% complete in Ohio as of Sunday, up from 89% a week earlier and ahead
of the average of 95% for that time of year.
The USDA also provided its first ratings of the condition of this year's corn crop. The
agency said 63% of the crop was in good-to-excellent condition as of Sunday, compared
with 72% at the same time last year. The percentage of crop that had emerged from the
ground was 74%, up from 54% a week earlier and behind the average of 82% for that
time of year.
Soybean planting continues to lag in the western Corn belt, especially in Iowa, were 44%
of the crop was in the ground, up only four percentage points from last week's 40% and
well behind the average of 91%.
In Ohio, however, 89% of the crop was planted, up from 70% a week earlier and ahead of
the average of 70% for that time of year.
The lingering delays in soybean planting aren't surprising, as farmers were expected to
focus their energy on planting corn before soybeans, analysts said. Soybeans can be
planted later than corn without losing as much yield potential.
"The problem is persistent rains will continue to drag out soybean plantings, as rains
return to the Midwest early next week, not allowing fields to dry out for planters to roll
back into the fields," Mr. Gidel said.
Of the soybean crop, 31% had emerged as of Sunday, up from 14% a week earlier but
behind the average of 49%, according to the USDA.
In the northern Plains, spring wheat was just 61% emerged as of Sunday, up from 42% a
week earlier and well behind the average of 80% for that time of year. "Persistent rains
have kept farmers out of their fields, indicating they may not plant as many acres as
they'd intended," Mr. Gidel said.
Spring wheat was 80% planted, up from 79% a week earlier and behind the average of
92%. In North Dakota, the country's top spring wheat-producing state, the crop was 64%
planted, behind the average of 89%, and 42% emerged, behind the average of 73%.
Winter wheat crop conditions improved slightly, with 32% of the crop rated in good to
excellent condition, up one percentage point from last week. The crop, which was
damaged by a severe drought in the southern Plains, was 73% headed as of Sunday,
below the average of 80% for that time of year.
U.S. cotton plantings surged to 82% complete during the week ended June 2, nipping at
the heels of the five-year average of 83% planted at this point in the season.
But "that doesn't change the percentage that went in very late," said Chris Kramedjian,
risk management consultant at INTL FCStone in Nashville, Tenn. Late plantings put
more of the crop at risk toward the end of the season, when the cotton bolls are open and
vulnerable to wet winter weather.
DJ e/cbot Grains/Oilseeds Futures Hourly Price Update
DJ - Mon Jun 03, 9:15PM CDT
Last
Change
High
Settlement
Corn (cents/bu.)
Jul 13
655.75
Sep 13
588.75
Dec 13
560
Soybeans (cents/bu.)
Jul 13
1532.5
Aug 13
1458.25
Sep 13
1367
Soybean Oil (cents/lb.)
Jul13
48.66
Aug13
48.65
Sep13
48.51
Soybean Meal ($/ton)
Jul13
454.4
Aug13
432.3
Sep13
411.8
Wheat (cents/bu.)
Jul 13
708.75
(CBOT) Sep 2013
718.5
(CBOT) Dec 2013
732.75
Low
Previous
653.25
-2.50
655.75
651.00
583.50
-5.25
589.00
582.75
554.75
-5.25
558.50
553.00
1523.75
-8.75
1533.00
1520.25
1451.75
-6.50
1460.00
1449.25
1361.50
-5.50
1368.00
1358.75
48.45
-0.21
48.61
48.35
48.43
-0.22
48.59
48.35
48.29
-0.22
48.40
48.21
451.80
-2.60
455.20
451.20
430.40
-1.90
433.50
430.00
409.90
-1.90
413.30
409.90
703.00
-5.75
708.75
701.75
712.75
-5.75
718.25
712.75
726.75
-6.00
732.75
726.75
DJ e/cbot Grains/Oilseeds Futures Hourly Price Update
DJ - Mon Jun 03, 10:15PM CDT
Last
Change
Settlement
Corn (cents/bu.)
High
Low
Previous
Jul 13
655.75
Sep 13
588.75
Dec 13
560
Soybeans (cents/bu.)
Jul 13
1532.5
Aug 13
1458.25
Sep 13
1367
Soybean Oil (cents/lb.)
Jul13
48.66
Aug13
48.65
Sep13
48.51
Soybean Meal ($/ton)
Jul13
454.4
Aug13
432.3
Sep13
411.8
Wheat (cents/bu.)
Jul 13
708.75
(CBOT) Sep 2013
718.5
(CBOT) Dec 2013
732.75
652.25
-3.50
655.75
651.00
582.50
-6.25
589.00
582.25
554.00
-6.00
558.50
553.00
1522.25
-10.25
1533.00
1520.25
1448.25
-10.00
1460.00
1448.00
1357.25
-9.75
1368.00
1357.00
48.39
-0.27
48.61
48.35
48.37
-0.28
48.59
48.35
48.24
-0.27
48.40
48.22
451.40
-3.00
455.20
451.20
429.50
-2.80
433.50
429.50
409.00
-2.80
413.30
409.00
701.25
-7.50
708.75
701.00
711.25
-7.25
718.25
711.25
725.50
-7.25
732.75
724.75
DJ Malaysian AM Cash Market Prices for Palm Oil -June 4
DJ - 1 hr 18 mins ago
KUALA LUMPUR, Malaysia--The following are prices for Malaysian palm oil in the
cash market at 0430 GMT Tuesday supplied by commodity broker Matthes & Porton
Bhd.
Prices are quoted in U.S. dollars a metric ton except for crude palm oil and palm kernel
oil which are in ringgit a ton. Palm kernel oil prices are in ringgit a pikul--a Malaysian
measurement equivalent to 60 kilograms.
Refined, bleached and deodorized palm
Month
Offer
Change
Jun
802.50
-02.50
Jul/Aug/Sep
802.50
-02.50
oil, FOB, Malaysian ports
Bid
Change
Traded
Unquoted
Unquoted
-
Oct/Nov/Dec
Jan/Feb/Mar
792.50
797.50
-02.50
-02.50
RBD palm olein,
Month
Jun
Jul/Aug/Sep
Oct/Nov/Dec
Jan/Feb/Mar
FOB, Malaysian ports
Offer
Change
812.50
-02.50
812.50
-02.50
802.50
-02.50
807.50
-02.50
Unquoted
Unquoted
-
-
Bid
Unquoted
Unquoted
Unquoted
Unquoted
Change
-
Traded
-
RBD palm stearin, FOB, Malaysian ports
Month
Offer
Change
Bid
Jun
750.00
00.00
Unquoted
Change
-
Traded
-
Palm fatty acid distillate, FOB Malaysian ports
Offer
Change
Bid
Change
Jun
645.00
00.00
Unquoted
-
Traded
-
Crude palm oil, Delivered Basis, South Malaysia
Offer
Change
Bid
Change
Jun
2,360
-20.00
Unquoted
-
Traded
-
Palm kernel oil, Delivered Basis, South Malaysia
Offer
Change
Bid
Change
Jun
141.00
00.00
Unquoted
-
Traded
-
($1 = MYR3.0910)
DJ U.S. Southern Plains HRW Wheat Weather - Jun 4
DJ - 1 hr 12 mins ago
USA CENTRAL AND SOUTHERN PLAINS
SUMMARY- Showers and thunderstorms of 0.10-0.60 inch (3-15 mm),
locally
heavier across northwest and western areas with dry weather elsewhere
during
the past 24 hours. Temperatures 75-94F (24-34C).
FORECASTTODAY... Mostly dry west with strong thunderstorms developing across
the
eastern half, amounts 0.20-1.25 inch (5-32 mm), locally heavier.
Temperatures
73-91F (23-33C).
TONIGHT...Episodes of scattered showers and thundershowers.
Temperatures
50-67F (10-19C).
TOMORROW... Periods of rain and a few thunderstorms, amounts 0.201.25 inch
(5-32 mm), locally heavier. Temperatures 67-88F (19-31C).
OUTLOOK... Mostly dry north with showers continuing south Thursday, a
few
showers and thundershowers west with mostly dry weather east Friday,
showers
and thunderstorms expanding across the region again Saturday.
Temperatures
mostly below normal Thursday through Saturday.
CENTRAL AND SOUTHERN PLAINS WHEAT PROSPECTS...
Above to well above normal temperatures and limited rainfall across
the dry
western winter wheat belt will put further stress on the developing
crop.
Significant crop losses are expected. More favorable conditions across
the east
where more adequate soil moisture conditions exist.
DJ U.S. Northern Plains Spring Wheat Weather - Jun 4
DJ - 1 hr 12 mins ago
USA NORTHERN PLAINS
SUMMARY- Rain and showers of 0.20-1.00 inch (5-25 mm), locally heavier
during
the past 24 hours with lighter amounts south and southeast.
Temperatures 50-72F
(10-22C).
FORECASTTODAY... Dry conditions or a few light showers west with a few
showers and
thunderstorms east. Temperatures 58-66F (14-19C).
TONIGHT...Mostly dry or a few lingering showers east. Temperatures
40-49F
(4-9C).
TOMORROW... Dry conditions or a few light showers east. Temperatures
64-71F
(18-22C).
OUTLOOK... Dry conditions Thursday, mostly dry or a few light showers
across
the west Friday, scattered showers and thundershowers Saturday.
Temperatures
near to below normal east and near to above normal west Thursday and
Friday,
near to below normal Saturday.
NORTHERN PLAINS WHEAT PROSPECTS...
Heavy rains across some areas during the past week have slowed
planting
progress. More wet weather during the next few days with drier
conditions
expected later this week. Temperatures near to below normal.
DJ Argentina Winter Wheat Weather - Jun 4
DJ - 1 hr 12 mins ago
CORDOBA, SANTA FE, NORTHERN BUENOS AIRES
SUMMARY- Dry conditions during the past 24 hours. Temperatures 64-72F
(18-22C).
FORECASTTODAY...Dry conditions. Temperatures 67-75F (19-24C).
TONIGHT...Dry conditions. Temperatures 38-46F (3-8C).
TOMORROW...Dry conditions. Temperatures 65-72F (18-22C).
OUTLOOK...Mostly dry Thursday through Saturday. Temperatures near to
above
normal during this period.
LA PAMPA AND SOUTHERN BUENOS AIRES
SUMMARY- Dry conditions during the past 24 hours. Temperatures 59-66F
(15-19C).
FORECASTTODAY...Dry conditions. Temperatures 61-68F (16-20C).
TONIGHT...Dry conditions. Temperatures 35-43F (2 to 6C).
TOMORROW...Dry conditions. Temperatures 57-63F (14-17C).
OUTLOOK...Mostly dry Thursday through Saturday. Temperatures near to
above
normal Thursday, near to below normal Friday, near to above normal
Saturday.
ARGENTINA WHEAT PROSPECTS...
Wheat planting is underway under favorable conditions.
DJ Argentina Corn Weather - Jun 4
DJ - 1 hr 12 mins ago
CORDOBA, SANTA FE, NORTHERN BUENOS AIRES
SUMMARY- Dry conditions during the past 24 hours. Temperatures 64-72F
(18-22C).
FORECASTTODAY...Dry conditions. Temperatures 67-75F (19-24C).
TONIGHT...Dry conditions. Temperatures 38-46F (3-8C).
TOMORROW...Dry conditions. Temperatures 65-72F (18-22C).
OUTLOOK...Mostly dry Thursday through Saturday. Temperatures near to
above
normal during this period.
LA PAMPA AND SOUTHERN BUENOS AIRES
SUMMARY- Dry conditions during the past 24 hours. Temperatures 59-66F
(15-19C).
FORECASTTODAY...Dry conditions. Temperatures 61-68F (16-20C).
TONIGHT...Dry conditions. Temperatures 35-43F (2 to 6C).
TOMORROW...Dry conditions. Temperatures 57-63F (14-17C).
OUTLOOK...Mostly dry Thursday through Saturday. Temperatures near to
above
normal Thursday, near to below normal Friday, near to above normal
Saturday.
ARGENTINA CORN PROSPECTS...
Favorable harvest conditions continue during the next 5 days.
DJ Former Soviet Union Corn Weather - Jun 4
DJ - 1 hr 19 mins ago
FSU WEST
SUMMARY- Numerous showers and scattered thundershowers in southern,
western
and interior-central areas yesterday, 0.10-1.25+ inches (3-32+ mm).
Mostly dry
elsewhere. Temperatures 58 to 88F (14 to 31C).
FORECASTTODAY...Scattered showers and thundershowers in southern and western
locales,
0.10-0.60+ inch (3-15+ mm). Generally dry elsewhere. Temperatures 59 to
87F (15
to 31C).
TONIGHT...Diminishing showers in said areas overnight.
TOMORROW...Additional showers and thundershowers in southern and
western
areas, with a few spotty light showers also possible in the northeast,
0.10-0.60+ inch (3-15+ mm). Temperatures 63 to 87F (17 to 31C).
OUTLOOK...Widely scattered showers and a few thundershowers Thursday
through
Saturday, mainly in northwest and southeastern locales. Temperatures
trending
warmer in western areas.
FSU GRAINS
CROP IMPACT- Showers and cooler temperatures will favor winter grains
through
western Ukraine, Belarus and the Central Region of Russia. A recent
drying
trend is of some concern in the eastern Ukraine. Dryness is of more
concern
through the Volga valley and in south Russia with only a few light
showers in
the area.
A drying trend from the Volga valley through the Urals region of
Russia and
in western Kazakh bears watching for its possible impact on spring
grains.
Favorable conditions through eastern Kazakh and southern Siberia spring
grain
areas at this time.
DJ e/cbot Grains/Oilseeds Futures Hourly Price Update
DJ - 1 hr 14 mins ago
Last
Change
High
Settlement
Corn (cents/bu.)
Jul 13
655.75
Sep 13
588.75
Dec 13
560
Soybeans (cents/bu.)
Jul 13
1532.5
Aug 13
1458.25
Sep 13
1367
Soybean Oil (cents/lb.)
Jul13
48.66
Aug13
48.65
Sep13
48.51
Soybean Meal ($/ton)
Jul13
454.4
Aug13
432.3
Sep13
411.8
Wheat (cents/bu.)
Jul 13
708.75
(CBOT) Sep 2013
718.5
(CBOT) Dec 2013
732.75
Low
Previous
652.00
-3.75
655.75
651.00
582.50
-6.25
589.00
581.75
553.75
-6.25
558.50
553.00
1521.75
-10.75
1533.00
1520.00
1447.50
-10.75
1460.00
1445.00
1355.50
-11.50
1368.00
1352.75
48.39
-0.27
48.61
48.35
48.33
-0.32
48.59
48.33
48.20
-0.31
48.40
48.20
450.60
-3.80
455.20
449.70
428.40
-3.90
433.50
428.10
407.70
-4.10
413.30
407.50
703.00
-5.75
708.75
701.00
712.50
-6.00
718.25
711.00
726.50
-6.25
732.75
724.75
DJ Northern Europe Grains Weather - Jun 4
DJ - 1 hr 14 mins ago
SCANDINAVIA
SUMMARY- Scattered showers in northern and eastern areas yesterday,
0.10-0.50
inch (3-13 mm). Mostly dry elsewhere. Temperatures 46 to 87F (8 to
31C).
FORECAST-
TODAY...Scattered showers in central and northern areas, 0.10-0.60+
inch
(3-15+ mm). However, Denmark and southern Sweden are expected to be
mostly dry.
Temperatures 46 to 86F (8 to 30C).
TONIGHT...A few showers in said areas overnight.
TOMORROW...Periodic showers in Norway and northern Sweden, 0.10-0.60+
inch
(3-15+ mm). Mainly dry elsewhere. Temperatures 48 to 84F (8 to 29C).
OUTLOOK...Mostly dry in southern Sweden and in Denmark. Widely
scattered
showers elsewhere Thursday through Saturday. Temperatures trending a
bit cooler
east, milder west.
NORTH EUROPE GRAINS
CROP IMPACT- Cool to very cool weather and wet conditions will favor
winter
grains in west and central Europe. However the cold conditions of last
week has
further delayed development of this part of the crop. Soil moisture and
temperatures favor winter grain areas in most of east Europe at this
time.
Spring grain areas to the north and east have mostly favorable soil
moisture at
this time but the cold weather will slow early growth.
DJ U.S. Midwest SRW Wheat Weather - Jun 4
DJ - 1 hr 4 mins ago
MIDWEST
SUMMARY- Mostly dry conditions except for a few showers across far
western
areas during the past 24 hours. Temperatures 67-76F (19-24C).
FORECASTTODAY... Dry conditions but with showers and thunderstorms developing
west
later in the day, amounts 0.20-0.75 inch (5-19 mm), locally heavier.
Temperatures 63-82F (17-28C).
TONIGHT... Dry conditions east with scattered showers and
thunderstorms west.
Temperatures 50-63F (10-17C).
TOMORROW... Dry conditions east with scattered showers and
thunderstorms
central and west, amounts 0.20-0.75 inch (5-19 mm). Temperatures 66-84F
(19-29C).
OUTLOOK.... Mainly cloudy with showers and thundershowers east and a
little
rain or showers west Thursday, showers or some rain lingering east with
partly
cloudy skies central and west Friday, a few showers through far eastern
areas
with dry weather central and west Saturday. Temperatures near to below
normal
during this period.
MIDWEST WHEAT PROSPECTS...
Mostly favorable conditions for the wheat crop at this time with
less
concern about disease.
DJ Europe Rapeseed Weather - Jun 4
DJ - 59 mins ago
EUROPE
SUMMARY- Periods of rain, showers and thundershowers in central and
eastern
areas yesterday, 0.10-1.50+ inches (3-38 mm) with some additional
flooding.
Mostly dry west, save for a few showers in west-central locales.
Temperatures
46 to 94F (8 to 34C).
***NOTE: Periods of heavy rain and showers in
Europe
triggering severe flooding the past few days.
particularly in the Czech Republic being hard
lighter in
central Europe the next few days allowing for
portions interior-central
With Austria, Germany and
hit. Showers generally
improved conditions.
FORECASTTODAY...Scattered showers and thundershowers in south-central and
eastern
Europe, 0.10-0.75 inch (3-25 mm). Mainly dry elsewhere. Temperatures 53
to 95F
(12 to 35C).
TONIGHT...Patchy precipitation in portions of said areas overnight.
TOMORROW...Periodic showers and a few thundershowers in southern and
eastern
portions of the region, with a few showers in west-central and far
northwest
locales as well, 0.10-0.75 inch (3-25 mm). Mainly dry elsewhere.
Temperatures
55 to 94F (13 to 34C).
OUTLOOK...Daily episodes of scattered showers and thundershowers in
eastern,
south-central and west-central Europe. Mostly dry elsewhere, with just
a few
isolated showers possible. Temperatures warmer most areas, save for
cooler
conditions expected in the southwest.
EUROPE RAPESEED
CROP IMPACT- Mostly favorable conditions for winter rapeseed across
Europe.
Recent rainfall has helped ease concerns in parts of Germany that were
dry
during April and March.
DJ Europe Wheat Weather - Jun 4
DJ - 54 mins ago
EUROPE
SUMMARY- Periods of rain, showers and thundershowers in central and
eastern
areas yesterday, 0.10-1.50+ inches (3-38 mm) with some additional
flooding.
Mostly dry west, save for a few showers in west-central locales.
Temperatures
46 to 94F (8 to 34C).
***NOTE: Periods of heavy rain and showers in
Europe
triggering severe flooding the past few days.
particularly in the Czech Republic being hard
lighter in
central Europe the next few days allowing for
portions interior-central
With Austria, Germany and
hit. Showers generally
improved conditions.
FORECASTTODAY...Scattered showers and thundershowers in south-central and
eastern
Europe, 0.10-0.75 inch (3-25 mm). Mainly dry elsewhere. Temperatures 53
to 95F
(12 to 35C).
TONIGHT...Patchy precipitation in portions of said areas overnight.
TOMORROW...Periodic showers and a few thundershowers in southern and
eastern
portions of the region, with a few showers in west-central and far
northwest
locales as well, 0.10-0.75 inch (3-25 mm). Mainly dry elsewhere.
Temperatures
55 to 94F (13 to 34C).
OUTLOOK...Daily episodes of scattered showers and thundershowers in
eastern,
south-central and west-central Europe. Mostly dry elsewhere, with just
a few
isolated showers possible. Temperatures warmer most areas, save for
cooler
conditions expected in the southwest.
EUROPE WHEAT
CROP IMPACT- Cool to very cool weather and wet conditions will favor
winter
wheat in west and central Europe. However the cold conditions of last
week has
further delayed development of this part of the crop. Soil moisture and
temperatures favor wheat areas in most of east Europe at this time.
Spring
wheat areas to the north and northwest have mostly favorable conditions
at this
time.
DJ Europe Corn Weather - Jun 4
DJ - 54 mins ago
EUROPE
SUMMARY- Periods of rain, showers and thundershowers in central and
eastern
areas yesterday, 0.10-1.50+ inches (3-38 mm) with some additional
flooding.
Mostly dry west, save for a few showers in west-central locales.
Temperatures
46 to 94F (8 to 34C).
***NOTE: Periods of heavy rain and showers in
Europe
triggering severe flooding the past few days.
particularly in the Czech Republic being hard
lighter in
central Europe the next few days allowing for
portions interior-central
With Austria, Germany and
hit. Showers generally
improved conditions.
FORECASTTODAY...Scattered showers and thundershowers in south-central and
eastern
Europe, 0.10-0.75 inch (3-25 mm). Mainly dry elsewhere. Temperatures 53
to 95F
(12 to 35C).
TONIGHT...Patchy precipitation in portions of said areas overnight.
TOMORROW...Periodic showers and a few thundershowers in southern and
eastern
portions of the region, with a few showers in west-central and far
northwest
locales as well, 0.10-0.75 inch (3-25 mm). Mainly dry elsewhere.
Temperatures
55 to 94F (13 to 34C).
OUTLOOK...Daily episodes of scattered showers and thundershowers in
eastern,
south-central and west-central Europe. Mostly dry elsewhere, with just
a few
isolated showers possible. Temperatures warmer most areas, save for
cooler
conditions expected in the southwest.
EUROPE CORN
CROP IMPACT- Wet, cool weather slows corn planting and early
development in
France, northern Italy and the former Yugoslavia region. Showers and
warmer
temperatures will favor corn areas of Hungary, Romania and Bulgaria.
DJ Argentina Soybeans Weather - Jun 4
DJ - 29 mins ago
CORDOBA, SANTA FE, NORTHERN BUENOS AIRES
SUMMARY- Dry conditions during the past 24 hours. Temperatures 64-72F
(18-22C).
FORECASTTODAY...Dry conditions. Temperatures 67-75F (19-24C).
TONIGHT...Dry conditions. Temperatures 38-46F (3-8C).
TOMORROW...Dry conditions. Temperatures 65-72F (18-22C).
OUTLOOK...Mostly dry Thursday through Saturday. Temperatures near to
above
normal during this period.
ARGENTINA SOYBEAN PROSPECTS...
Favorable harvest conditions continue during the next 5 days.
DJ U.S. Midwest Corn Weather - Jun 4
DJ - 24 mins ago
MIDWEST
SUMMARY- Mostly dry conditions except for a few showers across far
western
areas during the past 24 hours. Temperatures 67-76F (19-24C).
FORECASTTODAY... Dry conditions but with showers and thunderstorms developing
west
later in the day, amounts 0.20-0.75 inch (5-19 mm), locally heavier.
Temperatures 63-82F (17-28C).
TONIGHT... Dry conditions east with scattered showers and
thunderstorms west.
Temperatures 50-63F (10-17C).
TOMORROW... Dry conditions east with scattered showers and
thunderstorms
central and west, amounts 0.20-0.75 inch (5-19 mm). Temperatures 66-84F
(19-29C).
OUTLOOK.... Mainly cloudy with showers and thundershowers east and a
little
rain or showers west Thursday, showers or some rain lingering east with
partly
cloudy skies central and west Friday, a few showers through far eastern
areas
with dry weather central and west Saturday. Temperatures near to below
normal
during this period.
MIDWEST CORN PROSPECTS...
Heavy rains across central and western areas disrupted remaining
corn
planting and may have impacted planted crop due to flooding during the
past
week. Some replanting is possible. Favorable conditions for the
developing crop
through areas without flooding. Showers and rains are expected to
return mid to
late week.
DJ e/cbot Grains/Oilseeds Futures Hourly Price Update
DJ - 14 mins ago
Last
Change
High
Settlement
Corn (cents/bu.)
Jul 13
655.75
Sep 13
588.75
Dec 13
560
Soybeans (cents/bu.)
Jul 13
1532.5
Aug 13
1458.25
Sep 13
1367
Soybean Oil (cents/lb.)
Jul13
48.66
Aug13
48.65
Sep13
48.51
Soybean Meal ($/ton)
Jul13
454.4
Aug13
432.3
Sep13
411.8
Wheat (cents/bu.)
Jul 13
708.75
(CBOT) Sep 2013
718.5
(CBOT) Dec 2013
732.75
Low
Previous
653.25
-2.50
655.75
651.00
583.00
-5.75
589.00
581.75
554.00
-6.00
558.50
553.00
1519.50
-13.00
1533.00
1518.00
1445.25
-13.00
1460.00
1444.00
1351.75
-15.25
1368.00
1351.50
48.40
-0.26
48.61
48.35
48.34
-0.31
48.59
48.33
48.18
-0.33
48.40
48.18
450.00
-4.40
455.20
449.40
427.80
-4.50
433.50
427.70
406.80
-5.00
413.30
406.80
702.75
-6.00
708.75
701.00
712.50
-6.00
718.25
711.00
726.50
-6.25
732.75
724.75
DJ Timely Monsoon Arrival to Boost India's Foodgrain Output -Govt
Debiprasad Nayak - DJ - 13 mins ago
MUMBAI--India's foodgrain output will likely rise in the crop year beginning July as
monsoon rains have arrived as expected, the farm ministry said in a statement late
Monday.
Rains reached the mainland through the southern Kerala state over the weekend. The
monsoon is progressing well and is expected to advance to most of south India in two to
three days, the weather department said.
The timely arrival and distribution of monsoon rains are crucial to crop sowing in the
main summer season as a majority of the country's farmlands are rain-dependent. The
rainy season starts in the first week of June and ends mid-September.
India's food production is estimated to have fallen to 255.36 million metric tons in the
year ending June due to late arrival and erratic distribution of monsoon rains last year. It
hit a record 259.32 million tons the previous year.
DJ South Africa Corn Weather - Jun 4
DJ - 29 mins ago
SOUTH AFRICA
SUMMARY- A few spotty showers/t-showers across far southwestern areas
yesterday, 0.10-0.25 inch (3-6 mm). Dry elsewhere. Temperatures 46 to
92F (8 to
33C).
FORECASTTODAY...A few isolated light showers in the far south, otherwise
mostly dry.
Temperatures 48 to 87F (9 to 31C).
TONIGHT...Dry overnight.
TOMORROW...Mainly dry weather expected. Temperatures 50 to 88F (10 to
31C).
OUTLOOK...Generally dry Thursday through Saturday, save for a few
isolated
showers in the far south late this period. Temperatures cooler in the
east this
period.
SOUTH AFRICA CORN
CROP IMPACT- A mainly dry pattern in South Africa will favor the
harvest.
Palm Oil Drops as Demand From India
Seen Slowing on Weak Rupee
Palm oil fell on speculation that demand may slow from India, the world’s biggest buyer,
and as Malaysia’s currency advanced the most in almost a month against the dollar,
reducing the appeal of ringgit-denominated futures.
The contract for August delivery dropped as much as 0.8 percent to 2,376 ringgit ($768)
a metric ton on the Bursa Malaysia Derivatives, and ended the morning session at 2,378
ringgit. Palm for physical delivery in June was at 2,360 ringgit yesterday, according to
data compiled by Bloomberg.
India’s rupee touched an 11-month low yesterday on concern that the U.S. Federal
Reserve will scale back asset purchases that have spurred fund flows into emerging
markets. Shipments from Malaysia, the second-largest producer, to India dropped 14
percent to 163,650 tons in May from a month earlier, Societe Generale de Surveillance
said on May 31.
“Demand from India is slightly low due to the rupee,” Vijay Mehta, a director of
Commodity Links Pte., said from Singapore. “The buying momentum is slightly
missing.”
The ringgit strengthened today after an unexpected decline in U.S. manufacturing
reduced speculation that the government will roll back its stimulus. The ringgit gained as
much as 0.5 percent to 3.0831 per dollar, the most since May 8, according to data
compiled by Bloomberg.
“When you have a stronger ringgit, this means that exports will be pricier and this will
affect the demand,” said Sim Han Qiang, an analyst at Phillip Futures Pte. in Singapore.
Soybean oil for July dropped 0.6 percent to 48.37 cents a pound on the Chicago Board of
Trade, while soybeans fell 0.7 percent to $15.2125 a bushel. Refined palm oil for
September delivery retreated 1.6 percent to 6,096 yuan ($995) a ton on the Dalian
Commodity Exchange, while soybean oil lost 1.4 percent to 7,414 yuan.
NCDEX Guar Seed, Guar Gum bearish; short covering expected
MUMBAI (Commodity Online): The trend in guar seed and guar gum futures for July
delivery on India's National Commodity and Derivatives Exchange (NCDEX) looks
bearish and short covering is expected at current levels. Traders are advised to sell on
rise.
“Support for guar seed is seen at 7480 level while 8500 is the resistance. Traders may sell
around 8250 with the stop loss of 8500 for the target of 7480,” said Milan Shah, Research
Analyst at Commodity Online.
“Support for guar gum is seen at 23000 while 25700 is the resistance. One can sell
around 24800 with the stop loss of 25700 for the target of 23000,” he added.
NCDEX guar seed futures for July delivery was seen trading up by 1.57% at Rs.7780 per
100 kgs as of 11.59 AM IST on Tuesday.
NCDEX guar gum futures for July delivery was seen trading up by 2.3% at Rs.23990 per
100 kgs as of 11.49 AM IST on Tuesday.
A rise in arrivals as a result of bumper summer guar crop in Gujarat caused to fall spot
guar prices by around 16% in the last two-three weeks.
Good guar crop in Gujarat, Rajasthan and Haryana amid reports on favourable monsoon
rain fall has been putting pressure on guar prices in both spot and futures market.
Generally guar price movement is depend on monsoon.
India's guar sowing is expected to rise by 5 to 10% this year.
The summer guar seed production in Gujarat rose to 20,000 tons, when compared to
15,000 tons in the last year, according to the sources.
Meanwhile, farmers have started releasing their guar stocks ahead of sowing process.
Gur gum exports from India rose more than doubled to $4.78 billion from January to
April period when compared to the last year.
Guar seed arrivals across the country rose to 1728 tons during June 3 - 13 period when
compared to 408 tons during the same period last year.
MCX Cardamom hit record low on Monsoon forecast
Cardamom prices at India’s Multi Commodities Exchange (MCX) was down by 1.34%.
Cardamom June is now trading around Rs 693.90-708.80 per kg levels.
The ongoing arrivals in the physical market are likely to pressurize the prices. Favourable
weather and good crop prospects are likely to weigh on the prices.
On Tuesday trade, cardamom rose to a high of 708.80 Rs/kg at 01.20 pm IST and is
expected to trade negative in the near term. Support is at 690, 682 levels and resistance at
717 & 726, analyst said.
On daily charts, indicators were showing a sluggish phenomenon. RSI at 27.50 is bearish
and stochastic level is at oversold levels. The commodity is trading above the 20 day
SMA at 734 levels.
Short covering and bulk buying has reflected prices. Monsoon forecast over Kerala coast
may pressurize future prices. We expect MCX Cardamom to trade on bearish note.
NCDEX Turmeric positive on short covering
By John Godson
Turmeric prices at India’s National Commodities and Derivative Exchange (NCDEX)
witnessed a bullish phenomenon. Turmeric June is now trading around Rs 5750-5832 per
qtl levels.
Reports of quality concerns too kept the overall demand subdued. On Monday, turmeric
arrivals in Nizamabad were around 3500 bags (1bag=70kg) with the spot price for finger
variety quoted as Rs.5400 per 100kg.
On Tuesday trade, turmeric rose to a high of 5832 Rs/qtl at 12.26 pm IST and is expected
to trade positive in the near term. Support is at 5693, 5633 levels and resistance at 5817
& 5881, analyst said.
On daily charts, indicators were showing a positive phenomenon. RSI at 36.11 is bearish
and stochastic level is at lower levels. The commodity is trading below the 20 day SMA
at 5904 levels.
Short covering and bulk buying has reflected prices. Monsoon forecast over Kerala coast
may pressurize future prices. We expect NCDEX Turmeric to trade on bullish note.
Turmeric To trade on bearish zone; Jeera may remain stable
MUMBAI: Turmeric futures are expected to remain in bearish zone. At the spot market,
turmeric prices continue to rule flat despite arrivals dwindling to 2,800 bags a day.
Despite lower arrivals, buying was also low. The traders in North India are buying stocks
from Andhra Pradesh, Assam and two other places in North India, so the orders have
decreased.
Cardamom futures may fall further as export buying also slowed down due to lower
quality material. Consequently, the average auction price continued to rule below Rs 600
a kg at Rs 510-580. Total arrivals and sales during the current season from Aug 1, 2012
to June 2, 2013 were at around 13,769 tonnes (last year 18,511 tonnes)and 13,158 tonnes
(17,807 tonnes) respectively.
Jeera futures (July) will possibly remain stable above 13100 levels. A weaker rupee may
boost the export sentiments of the counter.
Oilseeds: Edible oil complex are likely to remain in positive zone supported by a weaker
rupee. CPO futures (June) is expected to trade in the range of 480-487 levels. Refined soy
oil futures (July) is likely to remain in range of 690-697 levels. Soybean futures (July)
will possibly manage to take support above 3650 levels.
At the spot market, soyabean prices ruled firm at Rs 3650-Rs 3750 a quintal amid arrival
of 35,000 bags. Plant deliveries in soyabean also ruled firm at Rs 3,750-Rs 3,850 a
quintal amid subdued demand from crushers.
Other commodities: Cotton futures are expected to maintain its upside bias on restricted
selling and normal buying by domestic mills. About 10,000 bales arrived in Gujarat and
28,000-30,000 bales in total across the country. Meanwhile, cotton yarn exports are
estimated to rise 7.7 per cent to 1,150 million kg in the current fiscal.
Sugar futures (July) will possibly manage to remain above 3040 levels. However, the
counter may face resistance near 3110 levels. The Vashi market continuously carries 100110 truckloads of inventory. Spot prices dropped by Rs 10-Rs 15 for selected varieties as
local demand was less than expected.
Chana futures (June) is expected to face resistance near 3250 levels. At the spot markets,
chana offered down Rs 25-50 a quintal on weak demand in the interior markets of
Maharashtra.
DJ U.S. Northern Plains Grains Weather - Jun 4
DJ - Tue Jun 04, 2:05AM CDT
USA NORTHERN PLAINS
SUMMARY- Rain and showers of 0.20-1.00 inch (5-25 mm), locally heavier
during
the past 24 hours with lighter amounts south and southeast.
Temperatures 50-72F
(10-22C).
FORECASTTODAY... Dry conditions or a few light showers west with a few
showers and
thunderstorms east. Temperatures 58-66F (14-19C).
TONIGHT...Mostly dry or a few lingering showers east. Temperatures
40-49F
(4-9C).
TOMORROW... Dry conditions or a few light showers east. Temperatures
64-71F
(18-22C).
OUTLOOK... Dry conditions Thursday, mostly dry or a few light showers
across
the west Friday, scattered showers and thundershowers Saturday.
Temperatures
near to below normal east and near to above normal west Thursday and
Friday,
near to below normal Saturday.
NORTHERN PLAINS GRAINS PROSPECTS...
Heavy rains across some areas during the past week have slowed
planting
progress. More wet weather during the next few days with drier
conditions
expected later this week. Temperatures near to below normal.
DJ Canadian Prairies Wheat Weather - Jun 4
DJ - Tue Jun 04, 2:05AM CDT
CANADIAN PRAIRIES
Summary: Rains of 0.20-1.00 inch (5-25 mm) across Alberta and most of
Saskatchewan with generally dry weather elsewhere during the past 24
hours.
Temperatures near to below normal.
FORECAST-
Forecast...
Days 1-3: Mainly dry today and Wednesday. Mostly dry or a few light
showers
Thursday. Temperatures average near to below normal today, near to
above normal
Wednesday and Thursday.
Days 4-5: Mostly dry or a few light showers across the west Friday.
Showers
and thundershowers east with drier weather across the west Saturday.
Temperatures average near to above normal, near to above normal west
and near
to below normal east Saturday.
6-10 Day Outlook: Temperatures are expected to average near to above
normal.
Precipitation should average near to below normal north and near to
above
normal south.
CANADIAN WHEAT PROSPECTS...
Spring wheat is typically sown during May into early June depending
on
weather conditions. Wheat normally will head during July and early
August with
harvest beginning by early September. Harvest continues through
September and
usually wraps up by mid October.
Crop Impact: Areas of heavy rains have slowed seeding during the past
10 days
in some areas. Drier weather is expected during the next few days
favoring
remaining planting and early germination.
DJ e/cbot Grains/Oilseeds Futures Hourly Price Update
DJ - Tue Jun 04, 2:15AM CDT
Last
Change
Settlement
Corn (cents/bu.)
Jul 13
655.75
Sep 13
588.75
Dec 13
560
Soybeans (cents/bu.)
Jul 13
1532.5
Aug 13
1458.25
High
Low
Previous
651.75
-4.00
655.75
651.00
580.75
-8.00
589.00
580.75
552.25
-7.75
558.50
552.25
1521.00
-11.50
1533.00
1518.00
1446.50
-11.75
1460.00
1444.00
Sep 13
1367
1352.50
-14.50
1368.00
1351.50
48.31
-0.35
48.61
48.29
48.28
-0.37
48.59
48.26
48.12
-0.39
48.40
48.12
450.20
-4.20
455.20
449.40
428.80
-3.50
433.50
427.70
408.00
-3.80
413.30
406.90
703.00
-5.75
708.75
701.00
712.75
-5.75
718.25
711.00
726.50
-6.25
732.75
724.75
Soybean Oil (cents/lb.)
Jul13
48.66
Aug13
48.65
Sep13
48.51
Soybean Meal ($/ton)
Jul13
454.4
Aug13
432.3
Sep13
411.8
Wheat (cents/bu.)
Jul 13
708.75
(CBOT) Sep 2013
718.5
(CBOT) Dec 2013
732.75
DJ China Dalian Grain Futures Closing Prices, Volume
DJ - Tue Jun 04, 2:16AM CDT
Soybean No. 1
Turnover: 51,844 lots, or 2.46 billion yuan
Open
High
Low
Close
Prev.
Settle
Ch.
Vol
Open
Settle
Interest
Jul-13 4,826
776
Sep-13 4,837
130,390
Nov-13 4,816
196
Jan-14 4,726
124,714
Mar-14 4
May-14 4,688
34,062
Jul-14 4,695
6
Sep-14 4,690
1,372
Nov-14 4
4,829
4,810
4,810
4,820
4,822
2
222
4,838
4,821
4,828
4,825
4,827
2
12,980
4,816
4,783
4,805
4,786
4,796
10
32
4,729
4,702
4,708
4,711
4,713
2
30,826
-
-
4,675
4,675
4,675
0
0
4,688
4,662
4,665
4,667
4,670
3
7,742
4,695
4,669
4,669
4,674
4,682
8
4
4,701
4,687
4,688
4,695
4,691
-4
38
-
-
4,626
4,600
4,626
26
0
Soybean No. 2
Turnover: 188 lots, or 7.76 million yuan
Open
Jul-13
Sep-13
Nov-13
Jan-14
Mar-14
May-14
4,329
4,160
4,180
4,085
4,150
High
Low
Close
4,329
4,177
4,180
4,148
4,150
4,329
4,058
4,117
4,085
4,150
4,329
4,127
4,117
4,148
4,081
4,150
Prev.
Settle
4,256
4,098
4,083
4,084
4,070
4,130
Settle
Ch.
Vol
Open
Interest
6
404
6
12
6
28
4,329
4,125
4,148
4,116
4,081
4,150
73
27
65
32
11
20
2
176
4
4
0
2
Settle
Ch.
Vol
Corn
Turnover: 146,120 lots, or 3.54 billion yuan
Open
High
Low
Close
Prev.
Open
Settle
Interest
Jul-13 2,411
568
Sep-13 2,446
520,296
Nov-13 2,389
84
Jan-14 2,370
269,216
Mar-14 2,367
146
May-14 2,411
20,392
2,437
2,411
2,413
2,407
2,421
14
22
2,447
2,433
2,435
2,448
2,438
-10
106,218
2,389
2,389
2,389
2,397
2,389
-8
2
2,375
2,366
2,370
2,377
2,370
-7
35,486
2,375
2,365
2,365
2,379
2,371
-8
30
2,417
2,406
2,408
2,416
2,411
-5
4,362
Soymeal
Turnover: 4,238,670 lots, or 142.53 billion yuan
Open
High
Low
Close
Prev.
Settle
Ch.
Vol
Open
Settle
Interest
Jul-13 3,716
1,356
Aug-13 3,617
578
Sep-13 3,548
1,285,696
Nov-13 3,427
650
Dec-13 3,371
162
Jan-14 3,296
1,265,324
Mar-14 3,275
788
3,746
3,713
3,719
3,709
3,724
15
270
3,634
3,605
3,614
3,608
3,617
9
50
3,548
3,504
3,527
3,506
3,524
18
1,790,312
3,427
3,381
3,382
3,398
3,408
10
142
3,377
3,343
3,343
3,365
3,362
-3
96
3,296
3,221
3,236
3,281
3,251
-30
2,296,978
3,275
3,215
3,223
3,277
3,235
-42
270
May-14 3,155
230,240
3,161
3,103
3,114
3,160
3,128
-32
150,552
Palm Oil
Turnover: 743,388 lots, or 45.75 billion yuan
Open
High
Low
Close
Prev.
Settle
Ch.
Vol
Open
Settle
Interest
Jun-13 0
Jul-13 28
Aug-13 6,012
50
Sep-13 6,196
528,122
Oct-13 6,106
2,056
Nov-13 12
Dec-13 6,206
16
Jan-14 6,288
389,200
Feb-14 14
Mar-14 6,300
8
Apr-14 6,374
6
May-14 6,408
20,278
-
-
5,946
5,946
5,946
0
0
-
-
5,982
5,982
5,982
0
0
6,012
6,012
6,012
6,062
6,012
-50
6
6,202
6,090
6,102
6,186
6,122
-64
420,472
6,112
6,092
6,092
6,146
6,104
-42
38
-
-
6,250
6,274
6,250
-24
0
6,206
6,206
6,206
6,284
6,206
-78
2
6,288
6,150
6,158
6,260
6,194
-66
319,424
-
-
6,220
6,220
6,220
0
0
6,306
6,248
6,306
6,400
6,278
-122
126
6,374
6,316
6,316
6,390
6,350
-40
10
6,408
6,290
6,298
6,398
6,304
-94
3,310
Soybean oil
Turnover: 1,336,396 lots, or 100.09 billion yuan
Open
High
Low
Close
Prev.
Settle
Ch.
Vol
Open
Settle
Interest
Jul-13 7,174
24
Aug-13 7,456
152
Sep-13 7,530
653,894
Nov-13 7,472
104
Dec-13 7,670
26
Jan-14 7,780
332,798
7,436
7,174
7,436
7,292
7,304
12
4
7,466
7,350
7,396
7,432
7,454
22
114
7,540
7,380
7,414
7,530
7,428
-102
1,004,222
7,564
7,436
7,532
7,612
7,504
-108
38
7,670
7,572
7,572
7,704
7,630
-74
16
7,780
7,630
7,658
7,766
7,674
-92
328,074
Mar-14
8
May-14
22,240
7,780
-
-
7,728
7,820
7,728
-92
0
7,788
7,648
7,682
7,772
7,676
-96
3,928
Notes:
1) Unit is Chinese yuan a metric ton;
2) Ch. is day's settlement minus previous settlement;
3) Volume and open interest are in lots;
4) One lot is equivalent to 10 metric tons.
DJ North Africa Winter Wheat Weather - Jun 4
DJ - Tue Jun 04, 2:20AM CDT
NORTH AFRICA
SUMMARY- Mainly dry yesterday. Temperatures 68 to 99F (20 to 37C).
FORECASTTODAY...Generally dry weather expected. Temperatures 70 to 103F (21
to 39C).
TONIGHT...Dry overnight.
TOMORROW...Mostly dry. Temperatures 68 to 104F (20 to 40C).
OUTLOOK...A mostly dry weather pattern Thursday through Saturday.
Temperatures hotter east, variable west.
NORTH AFRICA WHEAT
CROP IMPACT- Drier weather at this time in northwest Africa will favor
mature
winter wheat, after last week's unusual thunderstorm activity.
DJ China Zhengzhou Rice Futures Closing Prices, Volume
DJ - Tue Jun 04, 2:21AM CDT
Product
Settle
PrevSettle
Change
Open
High
Low
Volume
Open Int
Notes:
1) Unit is Chinese yuan a metric ton;
2) Change is the day's settlement minus previous settlement;
3) Volume and open interest are in lots;
4) One lot is equivalent to 10 metric tons.
DJ China Dalian Commodity Exchange Grain Stocks, Jun 04
DJ - 2 hrs 20 mins ago
The following are the Dalian Commodity Exchange soybean, soybean No. 2 or GMO
soybean, corn, soybean meal, soybean oil and palm oil stocks in lots as of Tuesday, Jun
04.
Total Stock
Soybeans
GMO Soybeans
Daily
On Warrants
3,951
0
Change
+18
0
Corn
Soy Meal
Palm Oil
Soy Oil
10,699
4,168
0
3,056
0
-2,000
0
0
Note: One lot is 10 metric tons.
DJ e/cbot Grains/Oilseeds Futures Hourly Price Update
DJ - 2 hrs 6 mins ago
Last
Change
High
Settlement
Corn (cents/bu.)
Jul 13
655.75
Sep 13
588.75
Dec 13
560
Soybeans (cents/bu.)
Jul 13
1532.5
Aug 13
1458.25
Sep 13
1367
Soybean Oil (cents/lb.)
Jul13
48.66
Aug13
48.65
Sep13
48.51
Soybean Meal ($/ton)
Jul13
454.4
Aug13
432.3
Sep13
411.8
Wheat (cents/bu.)
Jul 13
708.75
(CBOT) Sep 2013
718.5
(CBOT) Dec 2013
732.75
Low
Previous
650.50
-5.25
655.75
648.00
579.50
-9.25
589.00
577.00
550.25
-9.75
558.50
547.75
1520.75
-11.75
1533.00
1518.00
1446.75
-11.50
1460.00
1444.00
1353.50
-13.50
1368.00
1351.50
48.31
-0.35
48.61
48.29
48.28
-0.37
48.59
48.26
48.14
-0.37
48.40
48.09
450.30
-4.10
455.20
449.40
428.10
-4.20
433.50
427.70
407.30
-4.50
413.30
406.90
701.00
-7.75
708.75
700.00
710.50
-8.00
718.25
709.75
724.25
-8.50
732.75
723.25
DJ South Korea Kocopia Buys South African Corn at $300/Ton, C&F
Sameer C. Mohindru - DJ - 1 hr 17 mins ago
South Korea's Korea Corn Processing Industry Association Tuesday bought a 50,000
metric-ton cargo of South African food-grade corn from Noble Resources at $300/ton,
basis cost and freight for arrival by Sept. 30, trading executives said.
The cost of unloading part of the cargo at a second port is included in the price, they said.
South Korea is the world's third-largest importer of corn after Japan and Mexico and
sources most of its needs from the U.S. and South America. Due to tight supply from a
drought-hit U.S. and severe port congestion at Brazilian ports, it is now looking for
alternative sources.
Recently, Japan and Taiwan also bought corn from South Africa, traders said.
DJ e/cbot Grains/Oilseeds Futures Hourly Price Update
DJ - 1 hr 6 mins ago
Last
Change
High
Settlement
Corn (cents/bu.)
Jul 13
655.75
Sep 13
588.75
Dec 13
560
Soybeans (cents/bu.)
Jul 13
1532.5
Aug 13
1458.25
Sep 13
1367
Soybean Oil (cents/lb.)
Jul13
48.66
Aug13
48.65
Sep13
48.51
Soybean Meal ($/ton)
Jul13
454.4
Aug13
432.3
Sep13
411.8
Low
Previous
652.50
-3.25
655.75
648.00
580.00
-8.75
589.00
577.00
550.75
-9.25
558.50
547.75
1521.75
-10.75
1533.00
1518.00
1447.50
-10.75
1460.00
1444.00
1354.50
-12.50
1368.00
1351.50
48.37
-0.29
48.61
48.29
48.31
-0.34
48.59
48.26
48.15
-0.36
48.40
48.12
450.40
-4.00
455.20
449.40
428.80
-3.50
433.50
427.70
408.00
-3.80
413.30
406.90
Wheat (cents/bu.)
Jul 13
708.75
(CBOT) Sep 2013
718.5
(CBOT) Dec 2013
732.75
701.50
-7.25
708.75
700.00
711.00
-7.50
718.25
709.75
724.50
-8.25
732.75
723.25
DJ Japan Seeks 163,605 Tons Milling Wheat in Tender - Official
Sameer C. Mohindru - DJ - 32 mins ago
SINGAPORE--Japan on Tuesday issued a tender seeking 163,605 metric tons of milling
wheat in four grades for bulk shipment, including 61,140 tons of U.S. wheat, an official
with the Ministry of Agriculture, Forestry and Fisheries said.
He said Japan has temporarily suspended imports of U.S. Western White wheat following
the discovery of unapproved genetically modified wheat at a farm in Oregon, a major
producer of white wheat grades.
"The suspension will continue until the U.S. completes its investigation and informs us of
the results," the official said.
Japan won't need to import other grades of wheat to make up for the suspension as
processors are currently holding some 200,000 tons of Western White wheat, the official
said.
This is the seventh milling wheat tender to be held in the current financial year that
started on April 1. The tender closes Thursday.
The ministry is seeking one cargo each of U.S. Dark Northern Spring wheat and
Canadian Western Red Spring wheat for arrival by Sept. 30. It is seeking another Western
Red Spring cargo and one cargo of Hard Red Winter for shipment between July 21 and
Aug. 20, he said. Japan is seeking two cargoes of Australian wheat for shipment in
August.
Japan, one of the world's largest wheat importers by volume, bought 386,877 tons of
wheat in three tenders last month. It purchases milling wheat from the U.S., Canada and
Australia.
Details of the latest tender follow:
Quantity
Grade
Origin
35,335
25,805
22,900
26,100
24,935
28,530
Hard Red Winter
Dark Northern Spring
Western Red Spring
Western Red Spring
Australian Standard White
Australian Standard White
U.S.
U.S.
Canada
Canada
Australia
Australia
Details of Japan's wheat imports in previous months follow :Quantity*
2013
Month
Shipment
386,877
321,154
396,367
288,713
358,721
May
April
March
February
January
June/July/August
May/June/July
April/May/June
March/April/May
February/March/April
December
November
October
September
August
July
June
May
April
March
February
January
January/February/March
December/January/February
November/December/January
October/November/December
September/October/November
August/September/October
July/August/September
June/July/August
May/June
April/May
April
March
2012
451,566
479,182
273,425
338,550
318,838
401,164
436,160
463,045
390,560
365,577
331,900
474,705
* in metric tons
DJ e/cbot Grains/Oilseeds Futures Hourly Price Update
DJ - 6 mins ago
Last
Change
High
Settlement
Corn (cents/bu.)
Jul 13
655.75
Sep 13
588.75
Dec 13
560
Soybeans (cents/bu.)
Jul 13
1532.5
Aug 13
1458.25
Sep 13
1367
Soybean Oil (cents/lb.)
Jul13
48.66
Aug13
48.65
Sep13
48.51
Low
Previous
653.25
-2.50
655.75
648.00
581.25
-7.50
589.00
577.00
552.00
-8.00
558.50
547.75
1521.50
-11.00
1533.00
1518.00
1449.25
-9.00
1460.00
1444.00
1357.50
-9.50
1368.00
1351.50
48.39
-0.27
48.61
48.29
48.37
-0.28
48.59
48.26
48.23
-0.28
48.40
48.12
Soybean Meal ($/ton)
Jul13
454.4
Aug13
432.3
Sep13
411.8
Wheat (cents/bu.)
Jul 13
708.75
(CBOT) Sep 2013
718.5
(CBOT) Dec 2013
732.75
450.50
-3.90
455.20
449.40
429.10
-3.20
433.50
427.70
408.10
-3.70
413.30
406.90
702.25
-6.50
708.75
700.00
711.75
-6.75
718.25
709.75
725.25
-7.50
732.75
723.25
DJ MARKET COMMENT: Asian CPO Retreats on Profit-Taking
DJ - 4 mins ago
1017 GMT [Dow Jones] Palm oil futures on Malaysia's derivatives exchange end down,
weighed by lower CBOT soyoil futures in the Asian session and profit-taking after
Monday's gain, a Kuala Lumpur-based broker says. "Palm oil prices are currently in a
very important resistance zone MYR2,390-MYR2,425/ton and prices are unable to
sustain above MYR2,400/ton, which hints at weakness," says Mumbai-based
Commtrendz Research in a note. It tips near-term support at MYR2,365/ton. Benchmark
August CPO ends down 0.9% at MYR2,375/ton. CBOT July soyoil is down 0.6% at
48.39 cents/lb in screen trade.
Cookie Maker Margin to Improve on
Cheaper Wheat Prices
M. Dias Branco SA (MDIA3), the cookie- and pasta-maker providing the top return
among Brazilian food producers, is counting on falling wheat prices to help boost profit
margins in 2013.
Harvests are set to rebound after the U.S. drought sent wheat to a four-year high in 2012,
Chief Financial Officer Geraldo Luciano Mattos Jr. said. M Dias Branco responded to
that pinch by passing on costs to shoppers, fueling a 66 percent rally in the 12 months
through yesterday.
Now, with inflation squeezing consumer buying power, cheaper ingredients for Adriabrand macaroni and Zabet crackers would ease pressure on profits at the Eusebio, Brazilbased company. The margin on earnings before interest, taxes, depreciation and
amortization fell for four straight quarters to a low of 15.8 percent in the three months
ended March 31.
“Our biggest cost has been wheat,” Mattos said in a May 29 telephone interview. “We
had this cost pressure in the first quarter, it has passed now. Wheat should go down in
price and in the second half of the year, we are working to maintain, if not surpass, Ebitda
margins.”
M. Dias Branco has been buoyed by acquisitions in 2011 and 2012 that allowed the
company to branch into making instant noodles and cakes. Its shares were helped by
inclusion yesterday in the MSCI Brazil Index, a benchmark for equities in Latin
America’s largest economy.
Food Leaders
The past year’s gain was the most among Brazilian food companies, based on data
compiled by Bloomberg, and trounced a 1 percent advance for the Ibovespa index. The
stock fell 3.1 percent to 91.12 reais yesterday.
That left the shares trading at 19.2 times estimated 2013 earnings, compared with food
processors BRF SA (BRFS3) at 23 and Marfrig Alimentos SA (MRFG3) at 24, according
to data compiled by Bloomberg.
M. Dias Branco said that it had a 26.6 percent share of the cookie/cracker and pasta
markets in the northeast of Brazil earlier this year. It’s a region where crackers are eaten
daily at breakfast and pasta with both lunch and dinner, alongside the rice and beans that
are staples of diets elsewhere.
Raw materials such as grain, vegetable oil and sugar accounted for 69 percent of firstquarter expenses, according to the company. Wheat made up more than half the total.
Expenses surged 26 percent in the three months through March 31, outpacing a 17
percent gain in sales, M. Dias Branco said.
2012 Surge
That was a hangover from wheat prices reaching $9.4725 a bushel last year on the
Chicago Board of Trade as the U.S., the world’s leading exporter, endured one of its
worst droughts on record. The cost has been decreasing in 2013 and should keep
dropping as the harvest gets under way, said Mattos. Wheat futures for July delivery
closed at $7.0875 a bushel yesterday.
High-priced grain in stock was used in the first quarter to make crackers and pizza dough,
hurting margins, according to the company. While wages and operating expenses also
rose, M. Dias Branco was able to mute the effect by getting shoppers to pay more -- an
average of 11 percent for all products, led by 25 percent increases for wheat flour and
bran.
M. Dias Branco’s lineup is broad enough, and the company big enough, that it can adapt
to an economy with less growth and faster-rising prices than Brazil has had in recent
years, said Chuk Wong, vice president and portfolio manager at Toronto-based GCIC
Ltd., which has owned shares for more than a year.
Pasta, Biscuits
“Unless we’re talking about galloping inflation, it does have a strong ability to manage
margins by passing on a lot of the costs,” Wong said in a telephone interview. “Next
quarter it may have to absorb some costs. But at the end of the day, pasta and biscuits are
much less price sensitive than other products like beer.”
The challenge will be extending that pricing power as shoppers feel the pinch of annual
inflation nearing the central bank’s 6.5 percent ceiling. An index of Brazilians’ consumer
confidence has fallen in five of the past seven months.
“Inflation is corroding consumer income, and this could affect sales volume, even if the
products are a basic necessity,” said Sandra Peres, a Sao Paulo-based analyst at
Coinvalores in Sao Paulo. She rates the company a hold.
Acquisitions have been part of the growth strategy at M. Dias Branco, which may report
sales of 3.94 billion reais in 2013, based on analysts’ estimates compiled by Bloomberg.
That would be a 61 percent increase over 2010’s total. The company’s market value has
doubled in the past two years to 10.3 billion reais ($4.86 billion).
Buying Companies
M. Dias Branco bought food companies Pelagio Participacoes SA and J. Brandao
Comercio e Industria Ltda. in 2011 for as much as 240 million reais, a year before buying
wheat grinder and cookie-maker Moinho Santa Lucia Ltda. for a maximum of 90 million
reais, according to regulatory filings.
“We want to grow in all segments,” Mattos said. “We will look for areas that have
synergies with what we produce today.”
M. Dias Branco’s low debt of 485 million reais and cash flow of 131 million reais open
up the possibility for acquisitions, said Henrique Augusto Koch, an analyst at Banco do
Brasil SA (BBAS3) in Sao Paulo, who is reviewing his rating.
“The company has a good history of passing on costs,” Koch said in a telephone
interview. “Given that history, I’m optimistic that it can continue to pass on a little bit
more unless inflation loses control.”
China COFCO Said to Buy First
Argentine Corn Cargo After Accord
COFCO Corp., China’s largest grain trader, bought the nation’s first cargo of Argentine
corn since the two countries signed an import agreement in February 2012, according to
two people with direct knowledge of the deal.
The 60,000-metric-ton Panamax-ship order will be filled from the recently harvested crop
and shipped by the end of July, said an Argentine agricultural official and an executive
from a Chinese trading company, who declined to be identified because the transaction is
private.
The start of commercial shipments from Argentina to China will increase competition for
the U.S., the chief supplier of corn shipments to the Asian nation. China’s imports in the
year that will begin on Oct. 1 may reach 7 million tons, beating a record of 5.23 million
tons in the period through Sept. 30, 2012, the U.S. Department of Agriculture said May
11.
December-delivery corn, the most-active contract for the grain on the Chicago Board of
Trade, fell 1.4 percent to $5.52 a bushel at 5:50 p.m. in Beijing, adding to a 21 percent
slump this year. In China, futures settled at 2,435 yuan a ton, or $10.08 per bushel.
China buys almost all of its corn from the U.S., according to customs data. Imports,
which the government controls through quotas, may drop to 3 million tons this year,
according to the USDA.
While quarantine authorities officially began to certify Argentine companies in April this
year, buyers have so far only made one small trial purchase from the South American
nation.
New Hope Liuhe Co. bought about 50 tons of Argentine corn in the first transaction to
clear quarantine, the embassy of Argentina in Beijing said Dec. 20.
Ukraine was also approved as a supplier in November by China’s General Administration
of Quality Supervision, Inspection and Quarantine, while no shipments have been made.
Crop Progress: Weather Slows Corn
Planting In Late May
Planting progress in the top 18 corn producing states progressed by a leisurely 5% as wet
weather continued to prevent farmers from finishing the planting of the 2013 corn crop. If
further delays continue, soybeans and preventative planting will take the place of corn
acres.
As of June 2, 2013 91% of the U.S. corn crop has been planted. Corn that has emerged
was at 74%, down 8% from the five year average and down 22% from the previous year.
Corn conditions were 7% of the crop in poor or very poor conditions, compared to 5%
last year. And corn in good or excellent conditions was 63%, compared to 72% last year.
Soybeans planted were at 57%, behind the five year average of 74%. Last year at this
time, 76% of soybeans had emerged, but only 31% have emerged as of June 2, 2013.
Winter wheat conditions were 43% of the crop in poor or very poor condition compared
to only 18% at the same time last year. Winter wheat in good or excellent condition was
32%, compared to 52% last year. Last year at this time, 88% of winter wheat had headed,
but only 73% has headed this year.
As of June 2, 2013 80% of the spring wheat has been planted, lagging the 100% planted
last year. Of the spring wheat crop, 61% has emerged compared to the five year average
of 80%.
The July corn contract decreased 1.6% over the past week ending at $6.55 per bushel,
soybean prices increased by 1.5% over the past week ending at $15.32 per bushel, and
wheat prices ended the week at $7.08 per bushel, a 2.2% increase from last week. Year to
year corn prices are up 18.9%, soybeans are up 14% and wheat is up 15.7%.
GRAINS-Corn falls as planting activity
eases yield worries
SYDNEY, June 4 (Reuters) - U.S. corn slid almost 1 percent
on Tuesday to post their sharpest two-day loss in more than two
weeks as a U.S. government report allayed concerns that yields
would be curbed after recent wet weather.
Soybeans fell for the first time in three sessions as
traders banked profits, while wheat also edged lower, tracking
corn's weakness.
Chicago Board of Trade December corn, the most actively
traded contract, fell 0.94 percent to $5.54-3/4 a bushel by
0311 GMT, having closed down 1.28 percent on Monday.
Two-day losses for corn topped 2.2 percent, the biggest
since May 17.
Market concerns that wet weather last week across much of
the Midwest would severely delay planting were soothed by the
U.S. Department of Agriculture's (UDSA) latest report, despite
the government pegging planting pace at a 17-year low.
"It was not the disaster that the market was perhaps
expecting after the wet weather last week," Luke Matthews,
commodities strategist at Commonwealth Bank of Australia (CBA),
said of the planting progress of corn.
USDA said the corn crop was 91 percent planted as of Sunday,
up from 86 percent a week earlier but behind the five-year
average of 95 percent.
Further, in its first corn condition ratings of the season,
the USDA said 63 percent of the crop was rated good to
excellent, though this was tied with 2008 for the lowest rating
at this time of year since 2002.
"The ratings of the crop signal that there are very strong
yield potentials in the U.S. corn market this year, and all
things being equal, this points to a very significant increase
in production," said CBA's Matthews.
July soybeans fell 0.62 percent to $15.23 a bushel,
having closed up 1.49 percent on Monday.
Soybean planting was 57 percent complete, the USDA said,
while 31 percent of the soybean crop had emerged, below the
five-year average of 49 percent for this point in the season.
July wheat fell 0.99 percent to $7.01-3/4 a bushel
after closing up 0.46 percent in the previous session.
Wheat fell on pressure from corn, though analysts also noted
the impact of aggressive competition from Black Sea sellers,
which are being offered a discount to U.S. stocks.
Wheat appeared to shrug off pressure from the discovery of a
rogue strain of genetically modified crop in Oregon.
The United States has expanded its search team in Oregon as
it hunts for the source of unapproved genetically modified wheat
found growing wild on a farm there in April.
Grains prices at 0311 GMT
Contract
Last
Change Pct chg Two-day chg MA 30
RSI
CBOT wheat
701.75
-7.00 -0.99%
-0.53%
703.29
53
CBOT corn
554.75
-5.25 -0.94%
-2.20%
552.79
44
CBOT soy
1523.00
-9.50 -0.62%
+0.86%
1431.83
62
CBOT rice
$15.53
$0.07 +0.45%
+2.41%
$15.30
59
WTI crude
$92.92
-$0.53 -0.57%
+1.03%
$94.24
44
Currencies
Euro/dlr
$1.306 -$0.001 -0.08%
+0.53%
USD/AUD
0.971
-0.006 -0.64%
+1.44%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
Morning markets: China soymeal sell-off undermines oilseeds
Will this Tuesday prove a turnaround one?
The idea among Chicago traders that a strong trend in the first day of the week is
reversed on the second certainly gained traction in the soybean pit.
After strong gains in the last session, Chicago's July contract fell 0.8% to $15.20 ¾ a
bushel as of 09:55 UK time (03:55 Chicago time) while the new crop November lot eased
1.4% to $13.06 ¾ a bushel.
And this despite the US Department of Agriculture overnight revealing continued
planting hiccups in many states thanks to persistent rains, containing soybean sowings to
57% completion, up 13 points in a week, but behind the 74% of the crop typically in the
ground by now.
That's equivalent to a delay of about 13m acres.
China signal
Certainly, there was some caution abroad in many financial markets, as investors ponder
the significance, and mechanics, of the withdrawal of ultra-easy monetary policy which
seems to be in the wings.
While Tokyo stocks soared 2.1%, that was largely down to a reversal in the yen, with
Shanghai stocks closing down 1.2%, and Wall Street shares seen opening flat later on,
nearly 3% below their record high set two weeks ago.
But, signally for Chicago soybeans, Chinese investors were negative too on soymeal, the
feed ingredient from soybean processing, which has to a large extent bee leading the soy
complex higher.
"US soymeal export sales are running above the pace needed to meet the USDA forecast
for 2012-13," Kim Rugel at Benson Quinn Commodities noted.
"This has some analysts revising US crush usage of soybeans, and tightening US soybean
ending stocks despite slowing of soybean export sales and shipments."
Dalian dip
On the Dalian exchange, soymeal for January, now the best-traded contract, after soaring
nearly 8% in four sessions, reversed 1.4% to 3,236 yuan a tonne.
As the top importer, Chinese soy markets are closely watched, but particularly when bird
flu remains in the background as a threat to the poultry industry, and therefore to feed
demand.
The impact in Chicago was to send July soymeal down 0.9% to $450.40 a short ton, with
the December contract down 1.5% to $386.50 a short ton.
And that hurt soybeans too, which felt only light support from a US planting progress
figure which, while behind the average pace, was within the realms of traders'
expectations.
Profit-taking was in vogue instead, taking soybean prices down.
Selling was only encouraged by data late on Monday showing soybean exports from
Brazil, America's main trade rival in the oilseed, soaring in May to a record 7.95m
tonnes.
'Cautiously bearish'
The selling was felt in soyoil too, which dropped 0.7% to 48.34 cents a pound in Chicago
for July delivery.
And in Kuala Lumpur, rival vegetable oil palm oil dropped 0.8% to 2,376 ringgit a
tonne, with some lingering disappointment at data from cargo surveyors indicating a drop
of more than 3% in Malaysian palm exports last month.
Furthermore, technically "this current rally is a relief rally", Phillip Futures proposed,
forecasting that "crude palm oil prices will fall back towards 2,200 ringgit a tonne in time
to come, unless the level 2,500 ringgit a tonne is broken on the upside".
"We remain cautiously bearish on crude palm oil," the Singapore-based broker said.
Spring wheat hiccups
With soybeans, which have been Chicago's rock of late, crumbling, there was little hope
for gains in other Chicago crops, although Minneapolis spring wheat limited its losses to
0.1%, to $8.11 ½ a bushel, for the September contract, helped by USDA data showing
slow planting progress.
Indeed, farmers sowed only 1% of their spring wheat crop last week, taking the total to
80% completion, well behind the average of 90%.
In the top spring wheat state of North Dakota, only 64% of the crop was in the ground,
behind the average of 89%.
Furthermore, the first condition rating of the season for the national crop came in at 64%
seen as in "good" or "excellent" health, behind the 78% a year ago.
'Aggressive offers'
But for winter wheat, the condition rating improved one notch to 32% seen in good or
excellent health (albeit well below the 52% a year ago) after rains boosted some droughthit crops in the southern Plains.
Not that all the rainfall in the US has been welcome, with talk of some soft red winter
wheat, as grown in the Midwest, suffering disease pressures.
The proportion of Illinois wheat rated good or excellent sank by 6 points, to 66%.
Furthermore, in parts of Europe, rain is proving excessive too, causing heavy flooding in
the likes of the Czech Republic, although impact in terms of crop losses has yet to
become clear.
As a comfort for bears, "aggressive offers from Black Sea exporters, at prices
significantly cheaper than Australian and US origin, remains a headwind for prices",
Luke Mathews at Commonwealth Bank of Australia noted.
Chicago wheat for July fell 1.1% to $7.01 ½ a bushel.
'Driest-looking rainfall map'
In the corn pit, meanwhile, the July contract fell 0.8% to $6.50 ¾ a bushel, dragged
lower by the weakness in the new crop December lot, which shed 1.7% to $5.50 a bushel.
While the USDA crop progress data showed farmers remaining behind in seedings after
Midwest inundations last week, with 86% seeded as of Sunday compared with a typical
90%, there is the prospect of drier weather, particularly towards the end of the week.
The outlook for June 7-9 "may be that driest-looking rainfall map from the European
model and we have seen over the past several weeks", WxRisk.com said.
And this when farmers appear willing to sow corn late, even after insurance deadlines,
rather than switch to soybeans, because of what Benson Quinn Commodities called
"economics favouring late corn planting".
Mixed cotton
In New York, the rally in cotton, which closed limit up for July delivery in the last
session on bargain hunting, lost some steam as USDA data showed huge progress in
sowing the fibre, with 23% of the crop seeded in a week.
That took total seedings to 82%, just 1 point behind average.
In the top growing state of Texas, farmers planted 29% of their crop, helped by the arrival
of rains in eastern and southern areas, although what has emerged is not in great
condition, with 28% rated in good or excellent health.
A year ago, the figure was more than 50%.
Cotton for July stood 1.4% higher at 83.48 cents a pound, recovering more ground lost in
a nine-day losing streak, but the December lot eased 0.7% to 83.73 cents a pound.
India soybean, soyoil drop on weak
demand, monsoon
Indian soybean futures fell on Tuesday due to weak exports demand for soymeal and on
an early arrival of monsoon rains in southern states, while soyoil eased on subdued spot
demand.
* Rapeseed futures were treading water as a drop in overseas edible oil prices offset
dwindling supplies in local spot markets amid good demand.
* At 0822 GMT, the benchmark Malaysian palm oil contract was down 1.04 percent at
2,371 ringgit per tonne, while U.S. soybeans were 0.82 percent lower at $15.20-1/4 per
bushel.
* "Soymeal exports demand is subdued for last few weeks. That's why oil mills are not
actively buying soybeans in spot markets," said Faiyaz Hudani, a senior research analyst
at Kotak Commodity Services Ltd.
* "Monsoon has advanced in some states ahead of time. This is good news for soybean
farmers. They can plant the crop early."
* The monsoon has covered most southern states and some parts of western Maharashtra
state as on June 4, the weather department said.
* India's soymeal exports in April sank 67 percent from a month earlier to 99,451 tonnes,
dropping for a third straight month as farmers held back stocks in a move that tightened
supply and boosted prices of the animal feed.
* The key July soyoil contract on the National Commodity and Derivatives Exchange fell
0.53 percent to 690.70 rupees per 10 kg.
* The key July soybean contract dropped 0.65 percent to 3,718 rupees per 100 kg, while
the rapeseed contract for July was up 0.17 percent at 3,537 rupees per 100 kg.
* Indian farmers are expected to increase soybean planting in 2013/14, encouraged by a
rally in prices and the need to cultivate a sturdy crop to prepare for the possibility of an
unhelpful monsoon season.
* At the Indore spot market in Madhya Pradesh, soyoil eased 2.60 rupees to 712.40
rupees per 10 kg, while soybeans rose 14 rupees to 3,838 rupees per 100 kg. At Jaipur in
Rajasthan, rapeseed edged up 12 rupees to 3,512 rupees.
VEGOILS-Palm oil eases, tracks weak
soybean oil
SINGAPORE, June 4 (Reuters) - Malaysian palm oil futures
fell on Tuesday, tracking weaker soybean oil markets, although
losses were contained by expectations that inventories would
drop further in the world's second largest palm producer.
Soybeans fell for the first time in three sessions as
traders banked profits, pulling down prices for both soybean oil
and competing palm oil.
Stagnant production growth and demand recovery hopes that
have rallied the palm oil market since early May could still
provide support, although analysts were cautious against being
too bullish on near-term prices.
"We remain cautiously bearish on crude palm oil," said
Singapore-based Phillip Futures in a note to clients.
"Unless the 2,500 ringgit level is broken on the upside, we
believed that this current rally is a relief rally and crude
palm oil prices will fall back towards 2,200 in time to come."
By the midday break, the benchmark August contract
on the Bursa Malaysia Derivatives Exchange has lost 0.8 percent
to 2,378 ($769) ringgit per tonne, after trading between 2,376
ringgit to 2,388 ringgit.
Total traded volumes stood at 12,414 lots of 25 tonnes each,
a tad lower than the usual 12,500 lots.
Technicals showed palm oil may slide further to 2,365
ringgit per tonne, as a correction from the May 29 high of 2,420
ringgit has expanded, said Reuters market analyst Wang Tao.
Traders are pinning hopes on a demand recovery and weak
production to ease Malaysian palm oil stocks in May. The stocks
fell to a 10-month low of 1.93 million tonnes in April.
Exports fell over 3 percent in May compared to a month ago,
as shipments to Europe and China slowed and offset stronger
demand from India and Pakistan ahead of the Muslim festival of
Ramadan.
The holy month, which starts in July this year, typically
sees higher edible oil consumption as Muslims gather for
communal meals to break fast together.
U.S. soyoil for July fell 0.5 percent in early Asian
trade, while the most-active September soybean oil contract
on the Dalian Commodities Exchange lost 1.5 percent.
In other markets, Brent crude futures slipped below $102 a
barrel on Tuesday as weak U.S. manufacturing data stoked worries
about demand growth in the world's biggest oil consumer.
Palm, soy and crude oil prices at 0527 GMT
Contract
Month
MY PALM OIL
JUN3
MY PALM OIL
JUL3
MY PALM OIL
AUG3
CHINA PALM OLEIN SEP3
CHINA SOYOIL
SEP3
CBOT SOY OIL
JUL3
NYMEX CRUDE
JUL3
Last
0
2370
2378
6096
7414
48.40
93.05
Change
+0.00
-20.00
-18.00
-90.00
-116.00
-0.26
-0.40
Low
2350
2370
2376
6090
7380
48.35
92.91
High
0
2381
2388
6202
7540
48.61
93.39
Volume
0
2309
6719
341564
781092
2784
4472
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
Crude in U.S. dollars per barrel
($1=3.093 ringgit)
India sugar futures steady; monsoon
progress weighs
Indian sugar futures were treading water on Tuesday as ample supplies and an early
arrival of the monsoon in the South offset hopes of an improvement in demand from
stockists.
* The key July contract on the National Commodity and Derivatives Exchange was up
0.03 percent at 3,089 rupees ($54.38) per 100 kg at 0912 GMT, after rising to 3,104
rupees in the previous session, the highest level since May 23.
* "The early arrival of monsoon rains in Karnataka and some parts of Maharashtra can
limit the damage caused by a drought," said a Mumbai-based dealer.
* "Today demand was weak, but it should improve. Stockists will increase purchases in
the coming days."
* The monsoon has covered most southern states and some parts of western Maharashtra
state as on June 4, the weather department said.
* Spot sugar nudged down 3 rupees to 3,053 rupees per 100 kg at the Kolhapur market in
Maharashtra state.
* Demand for sugar from ice cream and beverage makers typically rises during the
summer, although this year it was lower than expected, dealers said.
* Sugar cane is a perennial, water-intensive crop and is usually harvested 10 to 16 months
after planting. Cane for the crushing season starting Oct. 1 has been planted, but half the
total acreage was short of water during the summer season.
* India is likely to produce 24.6 million tonnes of sugar in 2012-13, an industry body has
said, against an annual demand of about 23 million tonnes.
* New York raw sugar futures eased to a three-year low on Monday as selling on the
options market added pressure. ($1 = 56.8000 Indian rupees)
Yellow Syndrome Found in Australian
Sugar Cane as Harvest Starts
Australia’s sugar industry is investigating a new condition that causes cane leaves to turn
yellow amid concern it may curb production as the harvest begins in the world’s thirdbiggest exporter.
Yellow canopy syndrome has been found in fields in the Burdekin, Herbert, Tully and
Mulgrave regions in north Queensland, said Andrew Ward, professional extension and
communications unit manager at BSES Ltd. The Brisbane-based group, funded mainly by
a voluntary levy paid by sugar cane farmers and millers, is the principal provider of
research and development to the industry, according to its website.
The country’s sugar cane crush starts this week, according to the Australian Sugar
Milling Council. The harvest will total about 30.5 million tons, down from expectations
of 33 million tons, because of the yellowing condition and flooding in southern growing
regions, it said May 30. Global sugar prices have slumped 53 percent since reaching a
three-decade high in 2011 on increasing global production. The cause of the syndrome
has not been identified, according to Ward.
“In some fields that are exhibiting stress from other causes, it seems to really exaggerate
that stress and leads to stalled growth and poor production,” Ward said by phone from
Brisbane today. “But there’s also fields that are exhibiting symptoms that have very high
yield potential and appear to be in all other senses unaffected by it.”
Sugar Output
Australian farmers harvested about 30.4 million tons of cane last year, according to
producers’ group Canegrowers. Sugar output may total 4.5 million tons in the year
starting July 1 from 4.3 million tons a year earlier, the Australian Bureau of Agricultural
and Resource Economics and Sciences said in March.
Yellow canopy syndrome was first found in a couple of fields in the Mulgrave region
around Cairns early last year, Ward said. “This year, the scale of the problem has grown
very significantly,” he said.
Sugar for July delivery lost 0.7 percent to 16.43 cents a pound on ICE Futures U.S. in
New York yesterday. Sugar is the fourth-worst performer on the Standard & Poor’s GSCI
gauge of 24 commodities this year. Australia will be the third-largest exporter in 20122013, the U.S. Department of Agriculture said.
DJ Robusta Coffee Extends Declines; Cocoa, Wheat, Sugar Steady
Neena Rai - DJ - 1 hr 2 mins ago
Robusta coffee futures extended their declines in early trade Tuesday, as speculative
selling weighed on market sentiment, but London cocoa, sugar and European wheat
futures remained steady.
At 1015 GMT, robusta coffee futures for July delivery were trading 0.1% lower than
Monday's close of $1,881 a metric ton, as a combination of speculative selling and
lukewarm roaster interest weighed.
Geoffrey Williams, research director at Dublin-based Coffee Insights & Analysis, said
the 2013-14 Vietnamese crop will likely be substantial with between 26-29 million 60
kilogram bags.
"In the past 2 seasons the market has been repeatedly told there will not be enough
robusta to meet demand, but supply from Vietnam has continued to grow to meet
consumption," Mr. Williams said in a note. "Robusta prices remain higher than historic
averages in London encouraging investment in output and area."
At 1015 GMT, Liffe cocoa futures for July delivery were trading flat at GBP 1,507
($2,260) a ton after the prior session's gains.
According to The Public Ledger, the global cocoa market will register a deficit of 74,000
metric tons during the 2012-13 crop year and an even larger deficit of 178,000 metric
tons in the 2013-14 year, as increases in production fail to keep up with cocoa grinding
levels.
"The cocoa sector has seen a surplus for the last two seasons, which has helped prices on
the terminal market cool from a 33-year high of over GBP2,700 ($4,080) a ton reached in
2010. But a recovery in demand as Europe and the U.S. emerge from recession will help
keep futures - which have traded at around GBP 1,400 to GBP1,600 over the last year-supported over the coming two seasons," said a research note by The Public Ledger.
Meanwhile, European Union wheat futures were steady, with November Paris milling
wheat trading 0.6% lower at EUR204 a ton.
According to MDA Weather Services, rainfall over the past weekend eased dryness in the
northern Caucasus and western Kazakhstan.
"Rains should build into southeastern Ukraine and western North Caucasus this week,
which will finally begin to ease dryness and crop stress there as well. However, some
dryness will likely continue across central Volga Valley," the weather body said.
Risk manager Agritel says the market continues to be torn in price direction between
damages caused by floods in central Europe and beneficial rains expected over the Black
Sea region.
London sugar futures for August delivery were flat at $477.10 a ton as harvest pressure
from top producer Brazil keeps the market rangebound for now, dealers said.