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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.
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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 1-Chile volcanic eruption at critical stage - expert
Reuters: [2008-05-09 23:00:00]
(Adds evacuee comment, details from Argentina)
By Antonio de la Jara
PUERTO MONTT, Chile, May 9 (Reuters) - A towering plume of ash from an erupting volcano in Chile's remote Patagonia could rain down on the surrounding area and cause devastating damage, a volcano expert warned on Friday.
Luis Lara, a scientist with the government's geology and mining agency, said the column, which has soared 7.5 miles (12 km) into the air, was at a critical stage.
An abrupt descent would blanket vast areas with deadly hot gas, ash and molten rock, he said.
Authorities have evacuated thousands of people from the immediate vicinity of Chaiten volcano, 760 miles (1,220 km) south of the capital Santiago, and are forcing people within a 30-mile (50-km) radius to leave.
Chaiten began erupting eight days ago for the first time in thousands of years.
"We are at a critical point of this phase given the characteristics (of the eruption) have remained the same for several days," Lara said.
"The volcano is now at its limit and one possibility is that the column could collapse quickly, generating flows of ... material down its ravines," he said.
The column might descend gradually and do little damage. But in the worst-case scenario, the ash and fiery material would engulf the town of Chaiten, just 6 miles (10 km) from the volcano, and the areas around it.
Lara said the volcano could rumble on for years and suggested that the town, which is now deserted, be moved.
SOUTH ARGENTINA ALSO HIT HARD
The cloud has also caked towns on the Argentine side of the border with ash. Satellite images show a white stripe smeared across the southern part of the continent.
Ash that had drifted as far as Buenos Aires dissipated on Friday, and some airlines that had canceled flights overnight resumed service.
But towns in Argentine Patagonia were badly affected, with residents complaining of sore throats due to ash inhalation and being forced to pay exorbitant prices for bottled water because ground water had been contaminated.
Views of dramatic Andean peaks that serve as a natural border between the two countries were obscured by clouds of ash in the Argentine settlement of Trevelin, a popular tourist spot about 60 miles (100 km) from the volcano.
Shop owners put wet cloths and cardboard on the doorsteps as doormats to stop prospective customers from tracking ash into their premises. But they were losing the battle.
Some residents wore masks, but many did not.
"We keep cleaning, but still everything gets dirty at the same time. The dust and ash gets everywhere," said a hotel employee named Alejandra.
Back in Chile, many evacuees had no idea when they might be able to return to their homes and lives, and their frustration was mounting.
"We've been here so many days and no one tells us anything," said Iluminada Ide, who was evacuated to the southern Chilean town of Puerto Montt. "We can't go on like this." (Additional reporting by Jorge Otaloa in Trevelin, Karina Grazina in Buenos Aires) (Writing by Simon Gardner; Editing by Xavier Briand) ((For more facts on Chile's volcanoes, click on [ID:nN06486660])) ((simon.gardner@thomsonreuters.com; +562 370 4250; Reuters Messaging: simon.gardner.reuters.com@reuters.net)) Keywords: CHILE VOLCANO/
UPDATE 3-Mediator Mbeki meets Mugabe on Zimbabwe crisis
Reuters: [2008-05-09 22:23:00]
(Adds information minister comments, paragraphs 6-7)
By MacDonald Dzirutwe
HARARE, May 9 (Reuters) - South African leader Thabo Mbeki and President Robert Mugabe held talks on Friday on Zimbabwe's election crisis ahead of a possible run-off that has raised fears that violence could escalate.
Mbeki, whose softly-softly mediation in Zimbabwe's crisis has drawn criticism at home and abroad, met Mugabe for three hours, a day before the opposition MDC was expected to announce whether it would take part in a second round.
Western powers have called on African states to do more to end the stalemate, which has dashed hopes that the election would usher in a new era of prosperity and more freedoms.
Regional heavyweight South Africa is heading efforts by the regional grouping SADC to defuse the tension in Zimbabwe, which suffers from 80 percent unemployment, chronic food and fuel shortages and the world's highest inflation of 165,000 percent.
But Mbeki has lost credibility as lead mediator.
"He (Mbeki) came to get a briefing as mediator. He has come to get an on the spot understanding of developments on the ground," Zimbabwean Information Minister Sikhanyiso Ndlovu told reporters.
"It is very important for him as a mediator to get to know what is happening personally rather than from outside sources, particularly from the Western press," said the minister. He gave no details of the discussion and Mbeki also made no statement.
The last time Mbeki met Mugabe after the election, he denied there was a crisis, a comment widely attacked by political rivals and the international community. Opposition Movement for Democratic Change (MDC) leader Morgan Tsvangirai has said Mbeki is no longer fit to mediate.
Mbeki was briefed by a South African team he sent to Zimbabwe to investigate post-election violence during the visit.
He did not meet the MDC, party officials said.
Tsvangirai, who left Zimbabwe shortly after the March 29 elections, says he won the presidential poll outright. He has yet to give a final answer on whether he will contest a run-off.
If he does not, the 84-year-old Mugabe, who has ruled since independence in 1980, will automatically win.
The MDC is expected to announce their run-off decision at a news conference in Pretoria on Saturday at 0800 GMT.
U.N. Secretary-General Ban Ki-moon has been talking to African states about how the world body could help make a run-off credible and has expressed concern about the violence.
But Mbeki has said Zimbabwe's problems should find an African solution instead.
Asked in an interview on Al Jazeera television this week whether it would be helpful if U.N. monitors were allowed into Zimbabwe as election observers to help calm the situation and instil trust in the process, Mbeki said:
"I don't like the idea that suggests that as Africans we cannot do the job."
ACCUSATIONS OF ATTACKS
The MDC, rights groups and Western nations have accused the ruling ZANU-PF party of launching a campaign of violence to ensure Mugabe wins a run-off. ZANU-PF denies the charge and accuses the MDC of carrying out political attacks.
The opposition and civic groups have also said soldiers and armed militia groups beat civilians.
The Zimbabwe National Army told the state-run Herald newspaper it was not behind the violence and was trying hard to ensure peace returns.
Mugabe's government has repeatedly called for an end to the violence, in which the opposition says more than 20 people have been killed and thousands displaced. Agricultural groups say 40,000 labourers have been expelled from farms.
It has rejected criticism of the elections and the weeks of delays in confirming winners, saying it was running a free, fair and democratic election process.
Official results show ZANU-PF lost its parliamentary majority to the opposition for the first time since independence. Tsvangirai beat Mugabe in the presidential poll -- but not by enough votes to secure an absolute majority and avoid a run-off. (Additional reporting by Nelson Banya, Writing by Caroline Drees and Michael Georgy; Editing by Charles Dick) ((caroline.drees@reuters.com; +27 11 775 3168; Reuters Messaging: carolined.drees.reuters.com@reuters.net)) (For full Reuters Africa coverage and to have your say on the top issues, visit: http://africa.reuters.com/)
Keywords: ZIMBABWE ELECTION/
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