FOB Gulf Grain - Lack of demand pressures corn, soy steady

Reuters: [2008-05-09 23:59:00]

    CHICAGO, May 9 (Reuters) - U.S. FOB Gulf corn and soybean basis 
offers were mostly steady on Friday, with corn under pressure from a 
lack of fresh export demand, traders said. 
    * Corn prices also weighed by ample supplies at Gulf export 
elevators, and importers having good cargoes in advance. 
    * Traders said the surge in corn prices to record highs above $6 
a bushel also dampened export demand. 
    * Farmer selling of corn improved as cash prices passed the 
$6-a-bushel level this week. 
    * USDA export sales report Thursday showed corn sales in the 
week ended May 1 totaled 337,200 tonnes, down 39 percent from the 
previous week. 
    * Expected bumper wheat harvest in Europe could lead to more of 
the grain being used for feed instead of U.S. corn. 
    * Soybean basis offers were mostly steady; exporters were 
hopeful for fresh demand due to farm strike in Argentina. 
    * Hard and soft red winter wheat basis offers were steady. 
    ---- 
    To check displays of FOB basis, click on following: 
    U.S. FOB Gulf soybeans <GRZD> 
    U.S. FOB Gulf corn <GRZC> 
    U.S. FOB Gulf SRW wheat <GRZE> 
    U.S. FOB Gulf HRW wheat <GRZF> 
    
    LINKS 
    * FOB U.S. Gulf Grain                   [GRA/F] 
    * U.S. grain export summary             [GRA/U] 
    * Brazil soybean export prices          <SYBS> 
    * Brazil corn export prices             <SYBX> 
    * U.S. barge freight                    [BG/US] 
    * Americas Freight                      [FRE/] 
    * Asia Freight                          [FRE/AS\] 
    
 (Reporting by K.T. Arasu; Editing by Marguerita Choy) 
 ((ktarasu@thomsonreuters.com; + 1 312 408 8749; Reuters Messaging 
kumarasamy.thennarasu.reuters.com@reuters.net)) 
Keywords: MARKETS GRAINS FOB 
    

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

UPDATE 2-Libya, Italy patch up Mohammad T-shirt row

Reuters: [2008-05-09 23:26:00]

(Recasts after Libya accepts apology)

By Gavin Jones

ROME, May 9 (Reuters) - Libya accepted on Friday an apology from an Italian minister whose T-shirt offended Muslims in 2006, and withdrew threats of "repercussions" against Italy over the anti-immigrant party politician's inclusion in a new government.

Roberto Calderoli of the Northern League was named this week as a member of the new administration of Silvio Berlusconi, who was installed as prime minister for a third term.

A statement from the Libyan embassy in Rome said Libya noted "with satisfaction" the "public statement of regret" by Calderoli and, after further contacts with the Italian authorities, considered that "the case is closed".

Berlusconi, facing a diplomatic clash -- and possible energy sanctions -- after Libya made clear its anger at his choice of minister, said earlier he was "confident we will be able to clarify and calm down the situation with Libyan authorities".

Calderoli quit Berlusconi's last government in 2006 after wearing a T-shirt with a Danish cartoon of the Prophet Mohammad that angered Muslims worldwide. He was blamed for rioting that broke out at Italy's consulate in the Libyan city of Benghazi.

Libya had warned of "catastrophic consequences" if Calderoli became a minister again and reacted to his swearing-in on Thursday by saying it would no longer cooperate on preventing illegal immigrants from Africa landing on Italian shores.

The Libyan government was reported to be preparing sanctions against Italy such as shelving an agreement to extend the activities of Italian energy company ENI in Libya.

ANGRY RESPONSE

Returning as minister for "simplification" -- a new post without a full ministerial portfolio -- Calderoli was asked by Italian television about Libya's angry response to his appointment, and whether he regretted the T-shirt incident.

"Mine was a message of peace and rapprochement between the monotheistic religions but was misunderstood," he said. "I hope there aren't any problems today linked to something in the past that should be considered water under the bridge."

The Libyan embassy's statement said Calderoli had had further talks with the ambassador "during which he clarified the sense of the declarations he had already made to the media of the two countries."

New Foreign Minister Franco Frattini earlier on Friday called Libya "a friend" and said Italy "is committed to helping to develop those initiatives of strong collaboration with Europe that Libya wants."

Italy is Libya's main trading partner in Europe and ENI's Libyan assets are the subject of negotiations in the company's landmark cooperation deal with Russia's Gazprom.

Earlier on Friday Libya had demanded that Calderoli either step down or apologise for the 2006 episode.

"If the Italian government does not adopt one of these two options, it has to prepare itself for confronting the repercussions from its choice," the Gaddafi International Foundation said in a statement posted on its Web site.

The Foundation is chaired by Libyan leader Muammar Gaddafi's son Saif al-Islam, widely thought to play a major role in Libya's diplomacy with Western states.

Since the T-shirt incident, Calderoli has continued to offend Muslims in Italy by protesting at the construction of new mosques and threatening "pig day" protests to defile them. He once walked his own pet pig over a site intended for a mosque.

The Northern League, a long-standing ally of Berlusconi, is know for its vehement anti-immigrant rhetoric. The party made surprise gains in mid-April's election and was rewarded with four cabinet posts, including the Interior Ministry.

(Additional reporting by Stephen Brown and Lamine Ghanmi; Editing by Charles Dick) ((gavin.jones@reuters.com; +39 06 8522 4351; Reuters Messaging: stephen.brown.reuters.com@reuters.net))

Keywords: ITALY LIBYA/

UPDATE 3-Toronto stocks hit by profit-taking despite oil

Reuters: [2008-05-09 23:08:00]

(Adds details)

By Wojtek Dabrowski

TORONTO, May 9 (Reuters) - The Toronto Stock Exchange's main index finished in the red on Friday as profit-taking cooled the energy sector even though oil prices hit another record high.

The S&P/TSX composite index <.GSPTSE> dropped 86.80 points, or 0.59 percent, to close at 14,521.19.

"We had such a very good day yesterday and this market is still a very tricky market, so we probably ran into some profit-taking today," said John Kinsey, portfolio manager at Caldwell Securities Ltd. The index rose more than 200 points on Thursday.

Eight of the 10 main subgroups on the benchmark ended lower, including the key energy and materials sectors, which dropped 0.52 percent and 1.83 percent, respectively. Financials inched 0.06 percent lower.

The S&P/TSX 60 index of Canadian large-cap stocks lost 5.99 points, or 0.69 percent, to end at 863.46.

Oil shares fell even though crude jumped to a record high above $126 a barrel, extending its gains on fuel supply concerns and speculator buying.

Canadian Natural Resources Ltd <CNQ.TO> was among the energy companies that fell, losing C$1.85, or 1.9 percent, to C$94.15 a day after it reported a surge in quarterly profit because of rocketing oil prices.

Oil and gas powerhouse EnCana Corp <ECA.TO> fell 96 Canadian cents, or 1.1 percent, to end at C$86.52.

"The stocks are down for a change, they're not following their commodity," Kinsey said.

Gold prices moved higher on the back of oil on Friday -- an increase not reflected in the shares of gold producers such as Barrick Gold <ABX.TO>, which fell C$1.49, or 3.6 percent, to finish at C$39.51.

Among companies reporting results, ACE Aviation Holdings <ACEa.TO>, parent of airline Air Canada <ACa.TO>, posted a first-quarter loss on Friday because of one-time charges and said it would buy back about 42 percent of its stock. Its shares spiked C$1.41, or 7 percent, to C$21.46.

In the United States, the Dow Jones industrial average shed 120.90 points, or 0.94 percent, to close at 12,745.88. There, a dismal set of results from insurance behemoth American International Group <AIG.N> raised doubts that the end of the credit crisis was near. The tech-heavy Nasdaq moved lower by 5.72 points, or 0.23 percent, to 2,445.52.

($1=$1.02 Canadian) (Reporting by Wojtek Dabrowski; editing by Peter Galloway) ((wojtek.dabrowski@reuters.com; +1-416-941-8009; Reuters Messaging: wojtek.dabrowski.reuters.com@reuters.net)) Keywords: MARKETS CANADA STOCKS