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

TAKE A LOOK-Food price inflation

Reuters: [2008-05-09 22:50:00]

    Concerns about rising food costs in developing nations are 
growing as protests flare around the globe. 
    For latest stories click on codes in brackets: 
 
LATEST STORIES 
> U.S. sees record world food crops easing crisis    [nSP136885] 
> Hungry world to get record wheat, rice crops      [nN09493590] 
> Top U.N. human rights forum to examine food crisis[nL09680383] 
> U.S. rice prices soar as supply worries linger    [nL09610424] 
> Togo to sell cheap maize, subsidise fertiliser    [nL08784852] 
> Egypt expands food ration cards to extra 17 mln[ID:nL08590245] 
> US Congress expected to spurn aid reform call  [ID:nN08383281] 
> CentAmerica hands out cash to stall food crisis[ID:nN08362836] 
 
CAUSE 
> Food crisis due to greed, says development bank [ID:nL0697279] 
> Dealers blamed for rice price jump in Iran     [ID:nDAH738179] 
> Food export barriers could worsen shortages-EU [ID:nL17797794] 
> Bad policy, not biofuel, push food price-Merkel[ID:nL17211135] 
  
EFFECT 
> Bangladesh trade deficit swells as imports soar   [nDHA248379] 
> In food price crunch, more Americans seek help [ID:nN25422740] 
> Prices change life for Ivorian cocoa farmers   [ID:nL07201647] 
> Many Haitians work to secure one meal a day    [ID:nN05376826] 
> SE Asian rice cartel plan "going nowhere"       [ID:nSP245411] 
> Food crisis still playing out on world trade-US[ID:nJAK228926] 
> Food crisis may fuel malnutrition, not famine  [ID:nL30195271] 
 
 RESPONSE 
> INTERVIEW-Go easy on biofuels until more clarity  [nL09833115] 
> Abolish wasteful world food body-Senegal's Wade[ID:nN05398705] 
> S.Africa weighs moves to curb food price impact[ID:nL05236755] 
> Central bankers doubt can act on food prices   ID:[nL05129983] 
> Manila says imported enough rice to meet demand   [ID:nSP3132] 
> Biofuels halt would ease food prices - group   [ID:nN29326737] 
> UN, World Bank tackle food crisis               [ID:nSP192236] 
> India acts to quash inflation, guard supplies   [ID:nBOM95495] 
> Concentrate on making 08 harvest a success-FAO   [ID:nSP94899] 
 
 ANALYSIS/FEATURES/BACKGROUND 
> China overseas food push not realistic            [nPEK123785] 
> Kenya's nomads feel pain of food price rises      [nL04843407] 
> Big business muddies EU's biofuels debate      [ID:nL29123749] 
> Farmers face climate test in quest for more food[ID:nSP284721] 
> Rice,wheat prices diverge as fundamentals clash[ID:nKLR229596] 
> China wary of importing food inflation           [ID:nPEK3877] 
> Japan pushes rice as solution to food fears       [ID:nT22380] 
  
 FACTBOXES 
> Food price rises spark protests, hoarding      [ID:nL05374891] 
> TAKE A LOOK-Rice prices surge                   [ID:nSP156418] 
> Why have rice prices surged to record highs?     [ID:nSP90048] 
> The ABD's plan to fight Asian food inflation   [ID:nL03417096] 
> World's main exporters and importers of food   [ID:nL18356077] 
 ((Chicago commodities desk, + 1 312 408-8144)) 
  Keywords: FOOD PRICES/LOOK  
    

Dry weather speeds Argentine soy harvest - exchange

Reuters: [2008-05-09 22:42:00]

BUENOS AIRES, May 9 (Reuters) - Dry weather in Argentina's soy-growing region helped farmers make good progress in harvesting the 2007/08 crop, the Buenos Aires Grains Exchange said on Friday.

Argentina is the world's No. 3 soybean exporter and its top supplier of soyoil and soymeal. On Thursday, thousands of farmers went on strike for the second time in as many months over a government tax hike on soy exports.

In its weekly crop progress report, the exchange said the weather had helped harvesting progress.

"The lack of rain in a large part of the main and outlying productive areas has allowed for steady harvesting," it said.

But the exchange added that recent frosts were expected to lower average yields in some late-seeded plants.

By Friday, farmers had gathered 81.9 percent of harvestable lands on the 16.9 million hectares seeded with 2007/08 soy. This represented a gain of 10.9 percentage points from a week earlier and surpassed last season's tempo by 3.1 points.

The exchange upheld its forecast for production of 48 million tonnes, with average yields running at 2.86 tonnes per hectare.

The government estimates this season's crop at 47.2 million tonnes, just below last season's record output, while the U.S. Department of Agriculture (USDA) forecasts an Argentine harvest of 47 million tonnes. (Reporting by Maximilian Heath; Writing by Kevin Gray; Editing by Marguerita Choy) ((kevin.gray@thomsonreuters.com; + 5411-4510-2505; Reuters Messaging: kevin.gray@reuters.net))

Keywords: SOY ARGENTINA/REPORT