August 1st, 2012

Corn futures gained, extending the biggest monthly rally in more than two decades as the worst U.S. drought in half a century persists, threatening global supply.

Corn futures for December-delivery gained as much as 1.4 percent to $8.1675 a bushel on the Chicago Board of Trade after jumping to a record $8.205 yesterday. Futures, which surged 27 percent last month, the biggest monthly gain since 1988, traded at $8.15 at 12:31 p.m. Singapore time.

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July 25th, 2012

Corn futures rose in Chicago on speculation rains forecast for parts of the U.S. may fail to reverse crop losses caused by the worst Midwest drought in at least a generation. Soybeans also gained.

Areas of Indiana and Ohio had as much as 0.75 inch of rain yesterday, and parts of the eastern Corn Belt may receive an inch tomorrow, Telvent DTN said. While rain may ease crop stress, “this will not be a drought-breaking situation,” the forecaster said. As of July 22, 86 percent of the corn crop already entered the silking stage, critical for determining yields, Department of Agriculture data show.

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June 27th, 2012

Corn Futures – Corn supplies in the U.S., the world’s biggest exporter, are declining at the fastest pace since 1996 just as a Midwest heat wave damages the world’s largest harvest for a third consecutive year.

Stockpiles were probably 3.168 billion bushels (80.47 million metric tons) on June 1, 47 percent less than on March 1, the average of 22 analyst estimates compiled by Bloomberg shows. The worst Midwest drought in more than a decade is wilting a harvest that the U.S. Department of Agriculture says will be the biggest ever. The agency updates its inventory estimate June 29 and its production forecast two weeks later.

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Soybean fundamentals remain strong

On June 26, 2012, in Soybean futures news report, by Infinity Trading

June 26th, 2012

Soybean futures prices began moving higher in July 2010, starting from about $9.50. July 2012 soybean futures reached a high of about $14.70 in late August 2011, declined to a low near $11.25 in mid-December 2011, and reached a high of $15.12 in early May 2012. Prices have been very choppy the past two months, but the July futures contract is now trading within about $.30 of the early May high. November 2012 futures prices have been lower than July futures, but have followed a similar pattern and are now trading at a contract high near $14.30.

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June 25th, 2012

Wheat Futures – European wheat futures soared Monday to trade at their highest point for more than 12 months, as concerns about dry weather in a key grain-growing area of the U.S. boosted sentiment on the continent.

At 1023 GMT, November Paris milling wheat futures traded up EUR4.50, or 2.1%, at EUR221.00 a metric ton, the new crop contract’s highest level since June 3 2011, having earlier hit an intra-day high of EUR222.75/ton.

FCStone Europe had placed initial resistance at EUR217/ton and EUR218.75/ton, with a successful breach of these levels opening the way for resistance at the June 2011 high of EUR220.50/ton, followed by EUR225.25/ton.

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June 25th, 2012

Ethanol futures increased the most since March as corn used to make the fuel rose to the highest level since November.

The biofuel gained as the most-active December corn contract surged on forecasts that dry weather will continue to the end of June for most of the Midwest, reducing yields and raising the cost of ethanol production.

About 32 percent of the domestic corn crop is under stress, and temperatures will rise as the plants begin to pollinate, Chicago-based T-Storm Weather LLC said in a report. At least 50 percent of subsoil has been rated below normal since May 31, the forecaster said.

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June 22nd, 2012

Soybean and corn traders are bullish for a ninth week on mounting concern that dry weather will cut U.S. crop yields at a time when hedge funds are adding to wagers on higher prices.

Twenty-three analysts surveyed by Bloomberg said they expect soybeans to climb next week and three were bearish. A further four were neutral. Twenty expect gains in corn, four predicted a decline and five were neutral. Speculators raised bets on costlier soybeans for the first time in six weeks and increased net-long positions for corn from the lowest level in almost two years in the week ended June 12, U.S. Commodity Futures Trading Commission data show.

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June 15th, 2012

Corn futures and soybean rose on speculation that warm, dry weather in parts of the Midwest next week will stress crops in the U.S., the world’s biggest grower and exporter. Wheat declined.

Most fields from Missouri to Ohio will get less than 0.5 inch (1.3 centimeters) of rain over the next five days, said Kyle Tapley, an agricultural meteorologist for MDA Information Systems Inc. in Gaithersburg, Maryland. Temperatures will average about 10 degrees Fahrenheit above normal during the next seven days, making soils drier, he said.

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November 16th, 2011

Japan, the world’s largest corn importer, made its biggest purchase of European grain in at least a decade, seeking a cheaper alternative to U.S. supply.

The country bought about 800,000 metric tons from Ukraine after it removed a tax on exports last month. The purchase, made by five Japanese trading companies, was for shipments in November to March at prices that were about $20 a ton cheaper than U.S. corn, Nobuyuki Chino, president of Continental Rice Corp. in Tokyo, said in an interview today.

Japan, which sourced almost 90 percent of its corn last year from the U.S., the biggest exporter, is seeking different options after a drought hurt the U.S. crop, driving annual prices to an all-time high and curbing global food supplies.

“Japan joined other Asian buyers in finding cheaper alternatives to U.S. corn in feed as the American supply became too expensive,” Takaki Shigemoto, a commodity analyst at research company JSC Corp. in Tokyo, said today by phone. “A shift in demand will drag Chicago futures toward $6.”

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November 8th, 2011

The U.S. is reaping its smallest corn harvest in three years after a drought damaged what was a record crop as recently as July, driving annual prices to an all-time high and curbing an expansion in global food supplies.

The government will forecast production of 314.7 million metric tons tomorrow, 27.4 million tons less than four months ago, the average estimate of 30 analysts surveyed by Bloomberg showed. The cut is equal to output in Argentina, the second- biggest exporter. The U.S. Department of Agriculture already expected a third annual drop in global corn stockpiles and the first in soybean inventories in three years, offset by an expansion in wheat reserves to the largest in a decade.

Corn, used mostly to make livestock feed and ethanol, is the only one of eight members of the Standard & Poor’s GSCI Agriculture Index to gain this year. At a time when global food prices tracked by the United Nations fell 9.1 percent from a record in February, U.S. consumers are paying the most ever for pork chops, ground beef, flour and cheese. World food costs are 68 percent higher than five years ago and combined corn, wheat and soybean stockpiles are dropping to a three-year low, data compiled by Bloomberg show.

“The situation has improved, but it remains tight,” said Michel Portier, the head of Agritel, a Paris-based adviser to about 2,000 farmers. “The smallest weather problems could cause a price jump. For now all goes well, but it’s clear that on a global level, we still need a good harvest in 2012.”

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