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

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

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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]

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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

Toronto stocks end lower despite record oil price

Reuters: [2008-05-09 22:04:00]

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 74.22 points, or 0.51 percent, to unofficially close at 14,533.77. (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

US copper closes near 9-day low as stocks soar

Reuters: [2008-05-09 22:03:00]

NEW YORK, May 9 (Reuters) - U.S. copper futures finished sharply lower on Friday, sliding to a nine-day low after a surge in London Metal Exchange and weekly Shanghai Exchange warehouse stocks spooked investors, many of whom had already begun exiting positions this week, traders said.

NOTE: For detailed report, click on [MET/L].

* Copper for July delivery <HGN8> ended with losses of 7.10 cent at $3.7165 a lb on the COMEX metals division of the New York Mercantile Exchange.

* July futures slid to a 9-day low at $3.6775 a lb, leaving support at the May 1 low of $3.6675 a lb intact.

* London Metal Exchange copper warehouse stocks surged 11,150 tonnes on Friday to 121,275 tonnes. COMEX warehouse copper stocks stood even at 10,827 short tons on Thursday.

* Shanghai Futures Exchange copper inventories jumped 10 percent to 51,119 tonnes in the week to Thursday.

* Talk circulated the Shanghai market that South Korean LME warehouses would also soon see around 10,000 tonnes of copper deliveries from China.

* Analysts said much of the material causing the stock surge came from China, and is often followed by additional rises in copper stocks.

* Traders said Chinese buyers have been absent from the market of late.

* Some players were already in the process this week of unwinding long copper positions hastily taken out in Monday's unusual spike up to the $4.2605 a lb record high.

* A breach of July copper's March low at $3.6070 per lb would open up the downside to a much steeper decline.

* COMEX estimated final copper volume at 16,299 lots compared with Thursday's total volume of 14,749 lots.

* Open interest was down 783 lots at 98,360 contracts as of May 8.

* LME copper for delivery in three months <MCU3> finished Friday at $8,100 per tonne, down from $8,300 per tonne on Thursday.

(Reporting by Carole Vaporean; Editing by David Gregorio) ((carole.vaporean@reuters.com; 1-646-223-6044; Reuters Messaging: carole.vaporean.reuters.com@reuters.net; nyc.commods.newsroom@reuters.com))

For the latest news and prices, click on the codes in brackets:

LME overview <RING>

LME Warehouse stocks <LME/STX1>

Spot gold/silver <XAU=><XAG=>

COMEX copper futures <0#HG:>

COMEX metals warehouse stocks <CMWST>-<CMWSV>

N.Y. metals hourly volumes <IZQI>

Vols/open interest <MTXM>

RELATED NEWS AND OTHER TOPICS Precious metals news [GOL] All metals news [MTL] All commodities news [C] Metals diary [MTL/DIARY] Ldn Bullion Mkt Assoc <LBMA01> Foreign exchange rates <FX=S> Keywords: MARKETS COPPER/COMEX

US cattle set contract highs on cash, fund buying

Reuters: [2008-05-09 21:43:00]

By Jerry Bieszk

CHICAGO, May 9 (Reuters) - Cattle futures set contract highs in most months for a second day on Friday amid fund buying sparked by higher prices in the cash market, which reversed early losses from profit taking.

Expectations had been for both cash cattle and wholesale beef to be under pressure this week. Instead cash cattle gained $2 per cwt on Friday and the wholesale choice beef price reached its highest level in nearly a year.

"Seasonal weakness in the cattle market means nothing with the bullish incentives the market is sending producers," said Dan Vaught, livestock analyst with Wachovia Securities.

June live cattle <2LCM8> closed up 0.875 cent at 94.525 cents per lb and August <2LCQ8> was up 0.900 at 100.200. All but June set contract highs and June set a 10-week high.

Vaught noted that consumers have cut back on other items during the recession and eat in more which tends to lead to more purchases of steaks.

"The old theory is that red meat demand holds up under recessionary times. People will tend to avoid major durable purchases and tend to eat better by rewarding themselves for their frugality," said Vaught.

"Another idea is instead of going to restaurants and spending big bucks on a single steak, they will go to the grocery store instead and maybe spend the same amount of money and actually buy more product," he said.

USDA early on Friday put choice beef up 90 cents at $156.90 per cwt, the highest since May 25, 2007. Select was off 63 cents at $151.47.

Adding to support in the product is the possibility beef shipments to South Korea will be starting next week.

South Korea last month relaxed import restrictions on U.S. beef that were imposed after the first case of mad cow disease in the United States in 2003.

"I think that has certainly changed the psychology in the wholesale beef market," Dennis Smith, broker with Archer Financial, said of the upcoming South Korea business. While there have been protests in South Korea in opposition to U.S. beef, Smith believes it is a small faction.

"I am sure when our beef becomes widely available, at a reasonable price it will be gobbled up," he said.

The run-up in futures following higher cash also brought in fund buying as futures moved up to contract highs. Funds were buyers much of the week, traders said.

"I'd say most of the strength this week is from the funds having a renewed interest in the commodities," said Jim Robb, economist with Livestock Marketing Information Center.

Feeder cattle followed, erasing early profit taking and pressure from record higher CBOT corn futures overnight.

May feeder cattle <2FCK8> ended up 0.575 cent at 107.350 cents per lb and August <2FCQ8> was up 0.450 at 109.925.

Profit taking also pressured lean hog futures at times, but prices ended mostly up on support from continued strong cash markets and apparent active exports. All but July advanced as buying June and August and selling July kept the latter contract lower, traders said.

USDA on Thursday put pork cutout value up 39 cents $78.71 per cwt, highest since June 20, 2007. USDA also raised it 2008 pork export estimate to 4.310 billion lbs from 3.735 billion and lowered it production estimate to 23.502 billion lbs from 23.554 billion lbs.

June lean hogs <2LHM8> finished up 0.400 cent at 76.875 cents and July <2LHN8> was off 0.150 cent at 76.950 cents. June set a two-week high while May, and April 2009 through June 2009 set contract highs.

May pork bellies <2PBK8> closed up 1.750 cents at 80.450 cents per lb and July <2LHN8> was up 0.300 cent at 80.075. February and March 2009 set contract highs.

Gains in cash pork belly prices and forecasts for fewer hogs later this year supported pork bellies. (Reporting by Jerry Bieszk; Editing by Marguerita Choy) ((jerry.bieszk@thomsonreuters.com; 312-408-8725; Reuters Messaging: jerry.bieszk.reuters.com@reuters.net)) Keywords: MARKETS LIVESTOCK/