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06.46
USDA Concern Supply, Future Soybean and Corn Soar
Written By mine on Sabtu, 02 April 2011 | 06.46
Corn futures soared the daily 30-cent limit and soybean prices also rallied sharply after government data exacerbated concern over dwindling U.S. grain stockpiles in Chicago.
The nation?s corn and soybean supplies at the beginning of March fell to unexpectedly low levels, based on a U.S. Department of Agriculture report released earlier March 31. In a separate report, the USDA said it expects American farmers to reduce soybean plantings this spring, though corn acreage will rise to the second-highest total since the end of World War II.
With the spring planting season just beginning and harvest six months away, today?s reports only fueled anxiety over tight corn and soybean supplies, traders and analysts said. Demand from ethanol makers, livestock feeders and exporters remains strong, leaving little margin for error during the upcoming growing season.
Supplies are ?razor-thin,? said Matthew Connelly, a corn options broker on the CME Group trading floor in Chicago. ?If we go from a wet, cool spring to a hot, dry summer, that?s not good. That will get things going? in the grain markets.
If Midwest weather turns unfavorable, ?we could be talking about $10 corn and $20 soybeans,? Connelly said.
In trading March 31, corn futures contracts for delivery from May through July 2012 all rose 30 cents, the maximum daily move allowed by CME. May futures settled at $6.93 ? a bushel and December ended at $6.25 ?. Corn futures reached a 32-month high of $7.35 on March 4.
May soybean futures rose 38 ? cents to $14.10 ? a bushel, while November futures rose 31 ? cents to $13.95.
Farmers favoring corn over soybeans
Corn prices were the top-performer among major U.S. grains last year - rising 52 percent, based on CME futures - and the market continued to soar in 2011. High prices have boosted expected returns from planting corn compared with other crops, encouraging more acreage, the USDA said in its annual Prospective Plantings report March 31.
Farmers will plant an estimated 92.18 million acres to corn, up 4.5 percent from 88.19 million in 2010, the USDA said. The projected acreage for 2011 would trail only 2007 plantings of 93.5 million acres as the highest total since 1944.
Analysts on average expected corn plantings at about 91.8 million acres, based on a Dow Jones Newswires survey.
Much of the increase in corn will come at the expense of soybeans. Iowa, Kansas, Mississippi, Nebraska and Ohio are among states where farmers are expected to plant more ground to corn and less to soybeans. In North and South Dakota, corn acres are projected to surge 22 percent and 19 percent, respectively, according to the USDA.
Nationwide soybean plantings are estimated at 76.61 million acres, down 1 percent from 77.4 million last year but still the third-highest acreage on record, according to the USDA. Based on the Dow Jones survey, soybean plantings were estimated at 76.9 million acres.
While big corn acreage could lead to a record crop this fall, shorter-term supply concerns remain a primary focus for traders and analysts. By the end of the 2010-11 marketing year Aug. 31, U.S. corn stocks are expected to reach the lowest level in 15 years.
Jack Scoville, an analyst with Price Futures Group in Chicago, said lower-than-expected stocks figures for corn and soybeans will keep markets ?more attuned to weather developments? this spring and summer.
?We?re going to need really good weather, even with all these acres being planted to corn,? Scoville said during a March 31 press briefing at CME following the release of the USDA reports.
Recent corn purchases by exporters as well as livestock feeders has stayed firm even at high prices, Scoville said. Livestock buyers ?weren?t too thrilled with $7 (corn), but they paid it,? he said. ?They seem to be able to make those numbers work.?
In its Quarterly Stocks report, the USDA said U.S. corn supplies as of March 1 totaled 6.52 billion bushels, down 15 percent from the same date a year earlier. Soybean stocks totaled 1.25 billion bushels, down 1.6 percent.
March 1 corn and soybean supplies were about 180 million bushels and 46 million bushels, respectively, below analysts? expectations.
The USDA reports signal higher costs for livestock feeders, with many analysts expecting corn futures to climb back above $7 a bushel in coming weeks after tumbling near $6 earlier this month. With expensive feed discouraging herd expansion, cattle and hog prices may rise further.
?Look for livestock markets to advance on prospects for tighter and higher feed supplies, prompting lower weights and more cautious expansion attitude by livestock growers,? Richard Feltes, an analyst with R.J. O?Brien & Associates, said in a March 31 report. ?Today?s report sets stage for highly sensitive, weather-driven markets this summer.?
In late-morning trading, April live cattle futures traded on CME fell 0.175 cent to $1.20375 a pound, after touching a record $1.2165. April lean hog futures fell 0.1 cent to 93.45 cents a pound.
Lower soybean acreage may also push soybean meal prices higher, further raising feed costs for livestock producers.
But some analysts noted that soybean acres could still increase above the USDA?s projection. If a wet spring delays planting, farmers may shift more ground to soybeans, which have a shorter growing season than corn.
The USDA?s soybean plantings estimate, at 76.61 million acres, may be revised higher ?if the weather is indeed cold-wet through the month of April,? Mike Zuzolo, president of Global Commodity Analytics & Consulting, said in a March 31 report. He also sees the projected corn plantings ?as the biggest number we?ll get this spring if the weather doesn?t cooperate.
The nation?s corn and soybean supplies at the beginning of March fell to unexpectedly low levels, based on a U.S. Department of Agriculture report released earlier March 31. In a separate report, the USDA said it expects American farmers to reduce soybean plantings this spring, though corn acreage will rise to the second-highest total since the end of World War II.
With the spring planting season just beginning and harvest six months away, today?s reports only fueled anxiety over tight corn and soybean supplies, traders and analysts said. Demand from ethanol makers, livestock feeders and exporters remains strong, leaving little margin for error during the upcoming growing season.
Supplies are ?razor-thin,? said Matthew Connelly, a corn options broker on the CME Group trading floor in Chicago. ?If we go from a wet, cool spring to a hot, dry summer, that?s not good. That will get things going? in the grain markets.
If Midwest weather turns unfavorable, ?we could be talking about $10 corn and $20 soybeans,? Connelly said.
In trading March 31, corn futures contracts for delivery from May through July 2012 all rose 30 cents, the maximum daily move allowed by CME. May futures settled at $6.93 ? a bushel and December ended at $6.25 ?. Corn futures reached a 32-month high of $7.35 on March 4.
May soybean futures rose 38 ? cents to $14.10 ? a bushel, while November futures rose 31 ? cents to $13.95.
Farmers favoring corn over soybeans
Corn prices were the top-performer among major U.S. grains last year - rising 52 percent, based on CME futures - and the market continued to soar in 2011. High prices have boosted expected returns from planting corn compared with other crops, encouraging more acreage, the USDA said in its annual Prospective Plantings report March 31.
Farmers will plant an estimated 92.18 million acres to corn, up 4.5 percent from 88.19 million in 2010, the USDA said. The projected acreage for 2011 would trail only 2007 plantings of 93.5 million acres as the highest total since 1944.
Analysts on average expected corn plantings at about 91.8 million acres, based on a Dow Jones Newswires survey.
Much of the increase in corn will come at the expense of soybeans. Iowa, Kansas, Mississippi, Nebraska and Ohio are among states where farmers are expected to plant more ground to corn and less to soybeans. In North and South Dakota, corn acres are projected to surge 22 percent and 19 percent, respectively, according to the USDA.
Nationwide soybean plantings are estimated at 76.61 million acres, down 1 percent from 77.4 million last year but still the third-highest acreage on record, according to the USDA. Based on the Dow Jones survey, soybean plantings were estimated at 76.9 million acres.
While big corn acreage could lead to a record crop this fall, shorter-term supply concerns remain a primary focus for traders and analysts. By the end of the 2010-11 marketing year Aug. 31, U.S. corn stocks are expected to reach the lowest level in 15 years.
Jack Scoville, an analyst with Price Futures Group in Chicago, said lower-than-expected stocks figures for corn and soybeans will keep markets ?more attuned to weather developments? this spring and summer.
?We?re going to need really good weather, even with all these acres being planted to corn,? Scoville said during a March 31 press briefing at CME following the release of the USDA reports.
Recent corn purchases by exporters as well as livestock feeders has stayed firm even at high prices, Scoville said. Livestock buyers ?weren?t too thrilled with $7 (corn), but they paid it,? he said. ?They seem to be able to make those numbers work.?
In its Quarterly Stocks report, the USDA said U.S. corn supplies as of March 1 totaled 6.52 billion bushels, down 15 percent from the same date a year earlier. Soybean stocks totaled 1.25 billion bushels, down 1.6 percent.
March 1 corn and soybean supplies were about 180 million bushels and 46 million bushels, respectively, below analysts? expectations.
The USDA reports signal higher costs for livestock feeders, with many analysts expecting corn futures to climb back above $7 a bushel in coming weeks after tumbling near $6 earlier this month. With expensive feed discouraging herd expansion, cattle and hog prices may rise further.
?Look for livestock markets to advance on prospects for tighter and higher feed supplies, prompting lower weights and more cautious expansion attitude by livestock growers,? Richard Feltes, an analyst with R.J. O?Brien & Associates, said in a March 31 report. ?Today?s report sets stage for highly sensitive, weather-driven markets this summer.?
In late-morning trading, April live cattle futures traded on CME fell 0.175 cent to $1.20375 a pound, after touching a record $1.2165. April lean hog futures fell 0.1 cent to 93.45 cents a pound.
Lower soybean acreage may also push soybean meal prices higher, further raising feed costs for livestock producers.
But some analysts noted that soybean acres could still increase above the USDA?s projection. If a wet spring delays planting, farmers may shift more ground to soybeans, which have a shorter growing season than corn.
The USDA?s soybean plantings estimate, at 76.61 million acres, may be revised higher ?if the weather is indeed cold-wet through the month of April,? Mike Zuzolo, president of Global Commodity Analytics & Consulting, said in a March 31 report. He also sees the projected corn plantings ?as the biggest number we?ll get this spring if the weather doesn?t cooperate.
00.41
Corn and Grains prices Rise October 2010 Minnesota Farm Happy
Written By mine on Kamis, 28 Oktober 2010 | 00.41
Corn Prices October, On an October weekend, combines rumbled through fields and the grain elevators were overflowing as I drove along the highways of southwestern Minnesota farm country. The soybeans were picked and the corn was close behind.
Here in Lyon County, farmers were dancing with anticipation to get at the last of the corn in fields, fields that still held standing water from late summer flooding even though it hadn't rained in three weeks.
"And if you've got good corn, you've got good yields ? 180 or 190 bushels per acre," according to my friend Rodney Stensrud, whose farm is near here.
All in all, 2010 is a good year for farmers lucky enough not to be flooded out. October cash grain prices are at record highs, pulled along by new ethanol requirements for fuel and generally crummy weather in key growing areas around the country and the world. Future prices are even higher.
Prices vary around the region, but $5 or more will get you a bushel of corn and $11 will buy the same volume of beans. According to Bloomberg, corn prices reached a two-year high of $5.88 a bushel on Oct. 13 and soybeans touched $12.145 on Oct. 15, the highest levels in 16 months.
Corn is up about 60 percent and soybeans are nearly 30 percent higher since June. Farmers usually sell some grain ahead of time, the rest on the cash market and hold some for later, so not every bushel will fetch $5 or $11. But the average will be solid. And farmers saved more money this year because the grain was dry when picked, so they could skip the propane-fueled corn drier.
That's good news for rural communities, where many farmers will plow their profits back into their operations in order to avoid a big tax bill. A JP Morgan analyst recently predicted cash receipts from growers will rise 24 percent.
Meanwhile, Germany became the latest country to consider raising the percentage of ethanol in its gasoline, from 5 percent to 10 percent. Germany uses both grain and sugar to make ethanol, whereas in the United States most of the production is from corn.
The China factor
One note that has farmers worried is the Chinese government's raising interest rates, making U.S. grain more expensive. The Chinese are the world's largest consumers of grain and soybeans but are worried about inflation.
And consumers everywhere will pay more for cereal grain products. Golden Valley-based General Mills announced last week a 25 percent rise in prices on some foods, but it did not disclose which brands would be affected. "Increasing input costs necessitated this change," the company said in a statement.
In early October, the U.S. Department of Agriculture estimated Minnesota's corn crop at a record 1.26 billion bushels, up nearly 16 million bushels from last year's record. The USDA is forecasting soybean production at 329 million bushels, up 16 percent from last year and breaking the 2006 record of 319 million.
Here in Lyon County, farmers were dancing with anticipation to get at the last of the corn in fields, fields that still held standing water from late summer flooding even though it hadn't rained in three weeks.
"And if you've got good corn, you've got good yields ? 180 or 190 bushels per acre," according to my friend Rodney Stensrud, whose farm is near here.
All in all, 2010 is a good year for farmers lucky enough not to be flooded out. October cash grain prices are at record highs, pulled along by new ethanol requirements for fuel and generally crummy weather in key growing areas around the country and the world. Future prices are even higher.
Prices vary around the region, but $5 or more will get you a bushel of corn and $11 will buy the same volume of beans. According to Bloomberg, corn prices reached a two-year high of $5.88 a bushel on Oct. 13 and soybeans touched $12.145 on Oct. 15, the highest levels in 16 months.
Corn is up about 60 percent and soybeans are nearly 30 percent higher since June. Farmers usually sell some grain ahead of time, the rest on the cash market and hold some for later, so not every bushel will fetch $5 or $11. But the average will be solid. And farmers saved more money this year because the grain was dry when picked, so they could skip the propane-fueled corn drier.
That's good news for rural communities, where many farmers will plow their profits back into their operations in order to avoid a big tax bill. A JP Morgan analyst recently predicted cash receipts from growers will rise 24 percent.
Meanwhile, Germany became the latest country to consider raising the percentage of ethanol in its gasoline, from 5 percent to 10 percent. Germany uses both grain and sugar to make ethanol, whereas in the United States most of the production is from corn.
The China factor
One note that has farmers worried is the Chinese government's raising interest rates, making U.S. grain more expensive. The Chinese are the world's largest consumers of grain and soybeans but are worried about inflation.
And consumers everywhere will pay more for cereal grain products. Golden Valley-based General Mills announced last week a 25 percent rise in prices on some foods, but it did not disclose which brands would be affected. "Increasing input costs necessitated this change," the company said in a statement.
In early October, the U.S. Department of Agriculture estimated Minnesota's corn crop at a record 1.26 billion bushels, up nearly 16 million bushels from last year's record. The USDA is forecasting soybean production at 329 million bushels, up 16 percent from last year and breaking the 2006 record of 319 million.
00.48
South Africa Corn Commodity Dropped
Written By mine on Rabu, 15 September 2010 | 00.48
White and Yellow Corn commodities in South Africa tracking a decline in Chicago prices, a global benchmark. South Africa is the largest producer of the grain. Corn for December delivery eased 0.5 percent to $4.81 a bushel on the Chicago Board of Trade.
White corn for December delivery, the most active contract on the South African Futures Exchange, dropped 11 rand, or 0.8 percent, to close at 1,340 rand ($187) a metric ton. Meal made from the grain is the country?s staple food.
Yellow corn for December delivery fell 9 rand, or 0.6 percent, to 1,419 rand a ton. The grain is used mainly as animal feed in South Africa. The U.S. and Argentina are the world?s biggest exporters of the grain.
White corn for December delivery, the most active contract on the South African Futures Exchange, dropped 11 rand, or 0.8 percent, to close at 1,340 rand ($187) a metric ton. Meal made from the grain is the country?s staple food.
Yellow corn for December delivery fell 9 rand, or 0.6 percent, to 1,419 rand a ton. The grain is used mainly as animal feed in South Africa. The U.S. and Argentina are the world?s biggest exporters of the grain.
