CBOT corn ends mixed, new-crop up on seeding woes

Reuters: [2008-05-09 23:55:00]

(Adds volume)

CHICAGO, May 9 (Reuters) - U.S. corn futures closed mixed on Friday with new-crop months up on wet and cold weather that is slowing seedings of the 2008 U.S. corn crop and threatening to trim production, traders said.

CBOT May corn <CK8> closed down 1/4 cent at $6.18-1/2 per bushel, while July <CN8> down 1 at $6.29-1/4.

Bear spreading of December/July and September/July added pressure on nearby contracts while buoying the deferred months.

USDA's May supply/demand report released on Friday was a little bearish for corn prices, but traders said crop weather was a major market factor on Friday and tended to override the influence of the USDA report.

* Volume was large estimated at 299,215 futures and 92,012 options.

* Funds bought 2,000 lots.

* USDA pegs 2008/09 corn ending stocks 763 mln bushels. [ID:nDAT001063]

* Rains and cold temperatures continue to slow U.S. corn planting and corn emergence. [ID:nDTN241]

* Rainy weekend for U.S. Corn Belt, more next week. [ID:nN09501315]

* Enough corn in U.S. for food and ethanol, for now. [ID:nN09215996]

* U.S. cash corn steady, light farmer booking of new crop. [ID:nN08488938]

* Deliveries on May 517 lots. [ID:nN09233517]

* Oats closed 1/2 higher to 1-1/2 lower, with May <OK8> up 1/2 at $4.05 per bushel.

* Fund buying supported oat prices while commercial hedge selling weighed on the market.

* Oat futures volume was moderate estimated 1,422 contracts.

* Dollar falls, stung by oil surge, weak stocks. [USD/]

* NYMEX gold <GC:> higher; crude oil <CL:> at new record.

* U.S. stock market drops.

(Reporting by Sam Nelson) ((sam.nelson@thomsonreuters.com; +1 312 408 8720; Reuters Messaging: sam.nelson.reuters.com@reuters.net)) Keywords: MARKETS CORN CBOT

US soy futures hit 2-wk top on USDA supply outlook

Reuters: [2008-05-09 23:51:00]

(Adds volume)

CHICAGO, May 9 (Reuters) - Chicago Board of Trade soybean futures surged to a two-week high on Friday, climbing about 4 percent on USDA's smaller-than-expected U.S. soy supply forecast for the 2007/08 and 2008/09 marketing years, traders said.

* USDA pegged 2007/08 soybean ending stocks at 145 million bushels, down 15 million bushels from its April forecast. USDA estimated 2008/09 end stocks at 185 million bushels.

* "The only surprise is to see the beans as tight as they are, at 185 million bushels, given that ... production is up 20 percent," said Joe Victor, analyst with Allendale Inc.

* USDA put 2008/09 U.S. soymeal end stocks at 300,000 tons, even with its 2007/08 forecast. U.S. 2008/09 soybean oil end stocks were seen at 2.679 billion lbs, down from its 2007/08 forecast of 2.792 billion.

* May soybeans <SK8> ended 51-1/4 cents higher at $13.49-1/2 per bushel, July <SN8> up 48 at $13.58. New-crop November soy <SX8> was up 58 at $13.03-3/4.

* May soymeal <SMK8> closed $3.30 per ton higher at $333.10.

* May soyoil <BOK8> ended 2.45 cent per lb up at 61.53 cents. The contracts of October 2008 forward closed up the 2.5-cent limit, getting an extra boost for the rally in crude oil to an-all time high above $126 per barrel.

* CME Group said on its web site that soyoil limits stay at 2.5 cent per lb for Monday trade.

* Volume was moderate. In soybeans, an estimated 110,256 futures and 23,698 options. Estimated soymeal trade was 43,073 futures and 2,039 options. Soyoil volume was pegged at 49,731 futures and 1,290.

* Commodity funds bought 3,000 soybean contracts, 1,000 soymeal and 3,500 soyoil, traders said.

* A new wave of Argentine protests was supportive. But the strike was expected to be short-lived and there were reports that processors had adequate soybean supplies to meet nearby crushing demands. [ID:nN09500426]

* U.S. Midwest spot soybean basis bids were steady to weaker late Friday as new-crop sales picked up sparked by the rally in CBOT markets, dealers said. [ID:nN09467891]

* In the overnight delivery market, there were no May soybean postings, 409 soymeal and 426 soyoil.

* Malaysian palm oil futures closed higher. Dalian soybeans, soymeal and soyoil were mostly higher overnight.

For a detailed market report click on [GRA/].

(Reporting by Christine Stebbins) ((christine.stebbins@thomsonreuters.com; +1 312 408 8720; Reuters Messaging:christine.stebbins.reuters.com@reuters.net)) Keywords: MARKETS SOYBEANS CBOT

DIARY-Federal Reserve Events

Reuters: [2008-05-09 22:34:00]

    TO HAVE EVENTS INCLUDED, PLEASE CONTACT THE WASHINGTON 
NEWSROOM AT 202-898-8370/202-898-8318, OR BY FAX AT 
202-898-8383 OR 202-842-2527 
    THIS DIARY IS FILED DAILY. 
 
    ***Denotes a new entry. 
    -------------------------------------------------------- 
    MEETINGS 
 
    FOMC MEETING DATES (one-day meetings on Tuesday; two-day 
meetings Tuesday-Wednesday, except where noted. Decision 
released on second day of two-day meetings) 
    2008 
    June 24-25 (Decision expected at 1415 EDT/1815 GMT) 
    August 5 (Decision expected at 1415 EDT/1815 GMT) 
    September 16 (Decision expected at 1415 EDT/1815 GMT) 
    October 28-29 (Decision expected at 1415 EDT/1815 GMT) 
    December 16 (Decision expected at 1415 EST/1915 GMT) 
    2009 
    January 27-28 (Decision expected at 1415 EST/1915 GMT) 
 
---------------------------------------------------------- 
    FEDERAL RESERVE CHAIRMAN BEN BERNANKE 
 
    Tuesday, May 13 
    WASHINGTON -  Federal Reserve Chairman Ben Bernanke speaks 
VIA SATELLITE on "Federal Reserve Liquidity Measures" before 
the Federal Reserve Bank of Atlanta's "Financial Market 
Reforms: Taking Stock" 2008 Financial Markets Conference in Sea 
Island, Ga., 0820 EDT/1220 GMT. No Q&A. Contact: Pierce Nelson, 
404 498 8748 or pierce.nelson@atl.frb.org; or Jean Tate, 404 
498 8035 or jean.tate@atl.frb.org. Coordinates: Satellite: 
Horizons 2; Band KU; Transponder 15; Slot E, 9MHz; Downlink 
Freq. 11922.5000 (V) 
    
    Thursday, May 15 
    CHICAGO - Federal Reseve Chairman Ben Bernanke speaks on 
"Risk Management and Banking Operations" before the Federal 
Reserve Bank of Chicago's "Bank Structure and Competition 
Credit Market Turmoil: Causes, Consequences and Cures" 
conference, 0830 CDT/0930 EDT/1330 GMT. Audience Q&A expected. 
Hotel Intercontinental, 505 N. Michigan Ave. Contact: Laura 
LaBarbera, 312 322-2387 or Laura.LaBarbera@chi.frb.org. 
Information:   
http://www.chicagofed.org/news_and_conferences/conferences_and_events/2008_bsc_agenda.cfm 
 
    Thursday-Friday, May 29-30 
    BASEL, Switzerland - Bank for International Settlements' 
Basel Committee on Banking Supervision hosts "Risk Transfer 
Mechanisms and Financial Stability" conference. Speakers 
include (INVITED) Federal Reserve Chairman Ben Bernanke. 
Details TBA. Information:  
http://www.bis.org/bcbs/events/rtf08rtmfs.htm 
 
    Wednesday, June 4 
    CAMBRIDGE, Mass. - (INVITED) Federal Reserve Chairman Ben 
Bernanke speaks at Harvard University, 1400 EDT/1800 GMT. 
Speech topic, Q&A, other details TBA. Harvard Yard, 
Tercentenary Theater. Contact: 617 495-1585. Information: 
http://www.news.harvard.edu/gazette/2008/04.10/99-classday.html 
  
    Tuesday, June 10 
    CHATHAM, Mass. - (INVITED) Federal Reserve Chairman Ben 
Bernanke gives dinner speech before the Federal Reserve Bank of 
Boston "Understanding Inflation and the Implications for 
Monetary Policy: A Phillips Curve Retrospective" conference,  
1800 EDT/2200 GMT. Other details TBA. Wequassett Inn, Pleasant 
Bay Road. Contact: Tom Lavelle, 617 973 3647 or 
Thomas.L.Lavelle@bos.frb.org; or Donna Dulski, 617 973-3029 or 
Donna.Dulski@bosfrb.org; hotel 800 225 7125. Information: 
http://www.bos.frb.org/phillips2008 
 
---------------------------------------------------------- 
    OTHER FED OFFICIALS 
 
    Monday, May 12 
    PALATINE, Ill. - Federal Reserve Bank of Chicago President 
Charles Evans speaks on the economic outlook before the Harper 
College Economic Forum, 0815 CDT/0915 EDT/1315 GMT. Audience 
and media Q&As expected. Harper College, Wojcik Conference 
Center, 1200 W. Algonquin Road. RSVP: Maria Coons, 847 925 
6143 
    
    Tuesday-Wednesday, May 13-14 
    SEA ISLAND, Ga. - Federal Reserve Bank of Atlanta 
"Financial Market Reforms: Taking Stock" 2008 Financial Markets 
Conference. The Cloister, 100 Cloister Drive. Contacts: Pierce 
Nelson, 404 498 8748 or pierce.nelson@atl.frb.org; or Jean 
Tate, 404 498 8035 or jean.tate@atl.frb.org 
 

US business loans fell $700 mln in latest week-Fed

Reuters: [2008-05-09 22:15:00]

    WASHINGTON, May 9 (Reuters) - Commercial and industrial 
loans on the books at U.S. commercial banks fell in the latest 
week, the Federal Reserve said on Friday. 
 
 WEEK ENDED April 30 (Seasonally adjusted, billions of 
dollars) 
 Business loans..........1,490.4 down..........0.7 
 Govt, agency securities.1,109.9 up............4.6 
 Large time deposits.....2,072.0 down.........31.8 
    
 ((To access stories on Fed policy click on [FED/AHEAD])) 
 (Reporting by Glenn Somerville) 
 ((glenn.somerville@thomsonreuters.com; +1-202-898-8377; 
Reuters Messaging: glenn.somerville.reuters.com@reuters.net)) 
Keywords: USA LOANS/  
    

GLOBAL MARKETS-Record oil, AIG loss drag down global stocks

Reuters: [2008-05-09 22:12:00]

(Adds close of U.S. markets)

By Herbert Lash

NEW YORK, May 9 (Reuters) - Oil's relentless surge to a fresh high on Friday stoked worries about the economy and pressured stock markets in the United States and Europe, while a $7.8 billion loss at AIG, the world's largest insurer, rekindled fears that the credit crisis is not over.

Oil rose to over $126 a barrel, extending gains to more than 11 percent since the start of May and fueling fears that the high prices will spark inflation throughout the global economy. Oil set a record high every day this week.

Banking shares led stock markets lower in both the United States and Europe after U.S. insurer American International Group <AIG.N> reported its record quarterly loss late on Thursday.

AIG wrote down assets linked to subprime mortgages and also said it would raise $12.5 billion in new capital to strengthen its balance sheet.

News on Friday that Citigroup <C.N>, the top U.S. bank, plans to shed $400 billion in assets also pressured the financial sector.

"Over the past weeks, investors got the feeling that the credit crisis was easing, but a piece of news like that is sort of a wake-up call that reminds us that the storm is far from over," said Marie-Pierre Peillon, head of equity and credit research at Groupama Asset Management in Paris.

"This Citigroup move might just be the beginning."

Paul Nolte, director of investments at Hinsdale Associates in Hinsdale, Illinois, voiced a similar sentiment: "Many more financial institutions will be needing to raise capital to shore up balance sheets."

The Dow Jones industrial average <.DJI> fell 120.90 points, or 0.94 percent, at 12,745.88. The Standard & Poor's 500 Index <.SPX> declined 9.40 points, or 0.67 percent, at 1,388.28. The Nasdaq Composite Index <.IXIC> fell 5.72 points, or 0.23 percent, at 2,445.52.

For the week, the Dow fell 2.4 percent, the S&P 500 dropped 1.8 percent and the Nasdaq fell 1.3 percent.

Shares of AIG fell 8.8 percent to $40.28 on Friday, while Citigroup lost 2.8 percent to $23.63. Citigroup was the second most actively traded share on the New York Stock Exchange, and AIG was the third.

Despite the higher crude oil prices, Exxon Mobil <XOM.N> was among the top drags on the S&P 500 and Dow, with its shares down 0.8 percent at $88.82. Analysts said investors may be locking in profits after strong gains in recent weeks. In addition, others said that when energy prices reach a certain level it becomes more difficult for energy companies to pass on their higher costs to consumers.

In Europe, shares fell and capped their first weekly loss in a month on renewed concern over the outlook for the financial sector and the drag from the record high oil.

The FTSEurofirst 300 index <.FTEU3> of top European shares fell 1.3 percent to close at 1,342.68 points. Declining shares outnumbered advancers by about five to one.

The DJ Stoxx index of European banks <.SX7P> fell 1.7 percent, bringing this week's decline to 3.7 percent.

Societe Generale <SOGN.PA>, BNP Paribas <BNPP.PA> and Barclays <BARC.L> each lost between 2 percent and 2.5 percent.

French drugmaker Sanofi-Aventis <SASY.PA> was the biggest individual negative weight after the threat of generic competition for its blockbuster blood-thinner Plavix surfaced in Europe. Sanofi shares fell nearly 6 percent.

WORRIES BOOST GOVERNMENT DEBT

The renewed credit worries, prompted by the loss at AIG, boosted the appeal of safe-haven government debt on both sides of the Atlantic. The sagging stock markets helped bolster low-yielding currencies such as the yen and led the dollar to fall against most currencies on a rise in risk aversion and heightened concern about the health of the U.S. economy.

Benchmark 10-year U.S. Treasury notes posted their best week in nearly two months while the yield on 10-year Bunds fell to their lowest in three weeks to below the key psychological 4 percent level.

"The rise in risk aversion is mostly AIG," said Ron Simpson, director of FX research at Action Economics in Tampa, Florida. "It's brought credit market nervousness back."

French industrial production fell 0.8 percent in March from the previous month, a sharper drop than expected, according to data which highlighted slowing growth in the euro zone.

"You get the feeling from the corporate sector that the international credit crisis is taking its toll and this will change the entire landscape of earnings forecasts, which for the time being are still quite upbeat," said Heino Ruland, a strategist for FrankfurtFinanz.

In commodities markets, U.S. crude <CLc1> settled up $2.27 at $125.96 a barrel before rising to a record $126.25 in late post-settlement trade. London Brent crude <LCOc1> gained $2.56 to settle at $124.40 a barrel, off the earlier high of $125.90.

"Lingering geopolitical fears and high heating oil prices are helping the market, but the speed of the rise is too fast," said Tatsuo Kageyama, an analyst at Kanetsu Asset Management in Tokyo.

The dollar fell against major currencies, with the U.S. Dollar Index <.DXY> down 0.57 percent at 73.048.

The euro <EUR=> rose 0.47 percent at $1.5478, and against the yen, the dollar <JPY=> fell 0.72 percent at 102.98.

U.S. Treasury debt prices rose.

U.S. Treasury debt prices were mixed, with longer-dated securities rising and short-maturity notes falling.

The benchmark 10-year U.S. Treasury note <US10YT=RR> rose 1/32 to yield 3.78 percent. The 2-year U.S. Treasury note <US2YT=RR> fell 2/32 to yield 2.25 percent. The 30-year U.S. Treasury bond <US30YT=RR> gained 8/32 to yield at 4.53.

Gold also finished up on the back of record crude oil, as the surge boosted gold's appeal as a hedge against inflation.

Gold has traded in lock-step with movement in the energy market, which it has dramatically underperformed.

The June contract <GCM8> for gold in New York settled up 3.70 at $885.80 an ounce.

Resurgent oil surge weighed on Asian shares and earnings worries highlighted by Toyota comments pressured Japanese exporters, sending Tokyo's Nikkei average <.N225> down 2 percent.

Shares across the rest of Asia <.MIAPJ0000PUS> fell 0.5 percent. (Reported by Jennifer Coogan, Richard Leong, Nick Olivari in New York and Amanda Cooper, Atul Prakash, Santosh Menon and Kirsten Donovan in London; Editing by Leslie Adler)

((herb.lash@thomsonreuters.com; +1 646 223 6019; Reuters Messaging: herb.lash.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available

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