Wheat Heading for Biggest Weekly Drop Since March on Output Gain

May 17 (Bloomberg) — Wheat slid, heading for the biggest weekly drop since March, on signs that global production will rise to a record as exports lag behind last year’s pace in the U.S., the world’s top shipper. Corn rose, while soybeans fell.

World output will surge to 701.1 million metric tons in the year that starts June 1, with gains of 48 percent in Russia and 40 percent in Ukraine, the U.S. Department of Agriculture said May 10. U.S. exporters through May 9 shipped 24.6 million tons since the start of the marketing year on June 1, down 2 percent from a year earlier, government data show. Prices have tumbled 28 percent since reaching a four-year high in July.

“When you look around the world, there aren’t many problems with production,” Larry Glenn, an analyst at Frontier Ag in Quinter, Kansas, said in a telephone interview. “We don’t have the exports. They’ve been slow because we’ve lost some business to other countries.”

Wheat futures for July delivery fell 0.7 percent to $6.83 a bushel at 11:45 a.m. on the Chicago Board of Trade. A close at that price would leave the grain down 3 percent for the week, the biggest decline since March 29. The commodity through yesterday dropped 12 percent this year.

–Editors: Steve Stroth, Millie Munshi

To contact the reporter on this story: Tony C. Dreibus in Chicago at tdreibus.

To contact the editor responsible for this story: Steve Stroth at sstroth.

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Felix (Kyung) Seo

Soybeans Set for Biggest Weekly Gain Since January as China Buys

Soybeans Set for Biggest Weekly Gain Since January as China Buys

Soybeans rose in Chicago, set for the biggest weekly gain since January, on signs of sustained Chinese demand and on speculation a pickup in U.S. corn planting may leave fewer acres for sowing the oilseed.

China, the biggest soybean importer, purchased 79 percent of 346,634 metric tons sold by U.S. exporters in the week ended May 9 for delivery in the year beginning Sept. 1, the Department of Agriculture reported yesterday. That takes total U.S. sales for the next marketing year to 8.86 million tons before most farmers even planted their crops, USDA data show.

“Sustained U.S. soybean export sales to China supported soybean values,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a report today.

Soybeans for delivery in July added 0.4 percent to $14.33 a bushel at 7:41 a.m. on the Chicago Board of Trade. The weekly increase of 2.4 percent would be the biggest since the week ended Jan. 18.

Corn for delivery in July was little changed at $6.4125 a bushel on volume that was 49 percent below the 100-day average for that time of day. Prices are up 0.8 percent this week.

U.S. corn is now estimated to be about 60 percent planted, Paris-based farm adviser Agritel wrote in an online report today. As sowing of the grain progresses, there’s less risk of acres being shifted to soybeans, the company said.

“U.S. farmers may plant more corn and fewer soybeans than was previously expected,” Arnaud Saulais, a broker at Starsupply Commodity Brokers in Nyon, Switzerland, wrote in a note to clients today.

About 6 percent of the U.S. soybean crop was planted as of May 12, behind last year’s pace of 43 percent and an average of 24 percent in the previous five years, according to the USDA.

Wheat for delivery in July slipped 0.7 percent to $6.8275 a bushel, set for a 3.1 percent loss this week. Milling wheat for delivery in November traded on NYSE Liffe in Paris was unchanged at 208.50 euros ($267.46) a ton.

To contact the reporters on this story: Luzi Ann Javier in Singapore at ljavier; Rudy Ruitenberg in Paris at rruitenberg

To contact the editor responsible for this story: James Poole at jpoole4

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Felix (Kyung) Seo

Grains Decline on Rapid U.S. Planting Progress; Soybeans Rise

Grains Decline on Rapid U.S. Planting Progress; Soybeans Rise

Corn capped the longest slump in more than a month and wheat fell to a six-week low on signs that warm, dry weather will allow U.S. farmers to accelerate planting delayed by a cold, wet April. Soybeans rose.

More than 75 percent of the Midwest, the main growing region, avoided light showers that fell in the past 24 hours, World Weather Inc. said in a report today. While rain will be more widespread May 18 to May 21, the region will be mostly dry from May 24 to May 30, allowing active planting, the forecaster said. Corn sowing was 28 percent complete on May 12, more than double a week earlier, the government reported. The U.S. is the world’s largest grain exporter.

“Most farmers have made very good progress planting corn and spring wheat this week, and rain this weekend will aid early development and yield potential,” Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis, said by telephone. “The grain markets are adjusting to the idea that corn and wheat planting may jump to more than 60 percent to 65 percent completed by May 20.”

Corn futures for delivery in July fell 1.4 percent to close at $6.415 a bushel at 1:15 p.m. on the Chicago Board of Trade, capping for the first three-day drop since April 2.

Wheat futures for July delivery slipped 0.9 percent to $6.8775 a bushel on the CBOT, after touching $6.815, the lowest for a most-active contract since April 3.

Spring-wheat planting was 43 percent completed as of May 12, up from 23 percent a week earlier, the U.S. Department of Agriculture said on May 13.

Soybeans Rally

Soybeans advanced to a seven-week high on signs of sustained demand for U.S. supplies from China, the world’s largest importer.

Rising demand for soy-based animal feed and cooking oil will boost the China’s imports to 66 million metric tons from 59 million forecast in the year that ends Sept. 30, China National Grain and Oils Information Center said in an e-mailed report today.

Soybean futures for delivery in July rose 1 percent to $14.275 a bushel in Chicago, after touching $14.31, the highest for a most-active contract since March 28.

B. regards

Felix (Kyung) Seo