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
(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
(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
(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/
(Adds additional quotes)
WASHINGTON, May 9 (Reuters) - Venezuelan President Hugo Chavez's ties to Colombian rebels are deeper than previously thought, U.S. officials said on Friday, following an analysis of files on a dead guerrilla leader's laptops.
The files appear to be authentic and underscore U.S. concerns about Chavez's quest for more influence in the region, an intelligence official said. Their discovery in March raised speculation the United States would put Venezuela on its list of state sponsors of terrorism.
"It (the analysis) reinforces the U.S. government's strong position that Chavez is attempting in various ways to project his influence throughout the region and that influence in some ways could be construed as destabilizing," the intelligence official said.
Another U.S. official, who spoke on condition of anonymity because the issue involves classified information, described the files as a huge public relations win for Colombia, which is battling the guerrillas of the leftist Revolutionary Armed Forces of Colombia, or FARC.
"The involvement does seem to extend fairly high up in the Venezuelan government. This isn't a bunch of local yokels on the border doing their own thing," the official said.
Chavez contends the Colombian government faked the files.
Although Chavez's sympathies for the FARC are well known, Colombia has said the files seized in a March attack show Chavez offered financial support to the group.
The Wall Street Journal reported on Friday that the files also indicate Venezuela offered to arm the rebel group, possibly with rocket-propelled grenades and ground-to-air missiles. It said Venezuela offered FARC the use of a port to receive arms shipments.
The files document discussions between the rebels and Chavez about closer ties and portray a "deeper relationship than previously known," the intelligence official said.
The March attack by Colombia on a rebel camp in Ecuador killed a senior FARC leader and inflamed regional tensions. That and other recent attacks are seen as having weakened the rebel group that has been fighting a four-decade civil war in Colombia, to the point where FARC is "on its heels," the intelligence official said.
"However, they have shown an ability in the past to regroup and to regenerate leadership."
Bernardo Alvarez, Venezuela's ambassador to the United States, told the Journal in an interview on Wednesday, that the computer files were "false and an attempt to discredit the Venezuelan government."
The files indicate Venezuela has raised the prospect of drawing up a joint security plan with FARC and has sought basic training in guerrilla-warfare techniques, the Journal said, suggesting Chavez was preparing for a possible U.S. invasion of Venezuela.
(Reporting by Randall Mikkelsen at Guantanamo Bay U.S. Naval Base, Cuba, and David Morgan in Washington; Editing by Eric Beech)
((Reuters messaging: randall.mikkelsen@reuters.com; 1 202 898 8300)) Keywords: COLOMBIA CHAVEZ/REBELS
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