Commodities: Page 33

US corn, soy post gains on increased demand

U.S. corn continued its longest rally in a year and soybeans jumped the most in 11 weeks on speculation that adverse weather may reduce output in South America, increasing demand for U.S. supplies. Roughly 50% of Argentina crops will be dry through the first week of January 2012 after recent rain stayed north of the main growing regions, said Commodity Weather Group LLC in a report, and as much as a third of Brazil’s crops face a lack of rain.

International Trade

China may increase corn and wheat imports, report predicts

The China National Grain and Oils Information Centre published its latest report, which expects China will increase its corn and wheat imports. According to the report, in the year ending September 30, corn imports reached an estimated 4 million tons, up 3.02 million tons from last year, and wheat imports increased by 700,000 tons to 1.5 million tons in the year ending May 31.

Corn, soybean futures rise on falling prices

Corn futures for March delivery rose 0.9% on December 6, to $5.965 a bushel, up from a two-month low on speculation that prices that have fallen 20% since September 1 will increase demand from meat, food and fuel processors. Similarly, soybean futures for January delivery rose 0.3%, to $11.295 a bushel.

Japan may purchase less corn, more wheat to cut costs

Japan's livestock producers may purchase less corn as feed-wheat imports quadruple to the highest levels since 2001 on prices $50 per ton cheaper than U.S. corn, according to reports. Wheat imports may reach 430,000 metric tons, from 112,000 metric tons in the year ended March 31, according to Ikuho Tomita, deputy director at the agriculture ministry's feed supply and demand planning office.

International Trade

UK corn imports predicted to drop in 2011-2012

U.K. corn imports are forecast to drop 11% in the 2011-2012 season, to 904,000 metric tons from 1.02 million metric tons, as farmers use less corn for animal feed and more locally grown wheat, according to the Home-Grown Cereals Authority. Feed use of wheat will rise 4.9% to 6.45 million metric tons, according to HGCA data.

Commodity Futures Trading Commission limits trading on agriculture commodities

The Commodity Futures Trading Commission has voted to limit speculative trading for agricultural commodities, including corn, wheat and soybeans, according to the American Feed Industry Association. Part of the Dodd-Frank Act, the new rules establish speculative position limits on futures and swaps, and clarify rules for derivative clearing organizations.

International Trade

China unlikely to import US corn

For many, it seems only a matter of time before a global battle for limited corn supplies begins. However, despite these reports, not everyone is in agreement as to what will ultimately happen in regard to China, corn exports and corn prices in 2011.

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Feed Mill Management

Distillers’ grains substituting for more corn, soybeans in feed

On average, between crop years 2006/2007 and 2010/2011, 1 metric ton of distillers' grains (DDGS) produced for animal feed by U.S. ethanol plants substituted for about 1.22 metric tons of corn and soybean meal combined, according to a report by the U.S. Department of Agriculture. These findings may result in a net increase in DDGS in animal feed, as over time the amount in beef cattle feed declines but the share in dairy cattle, swine and poultry feed increases, according to the report.

Pig farmers extending use of wheat in animal feed

Pig farmers are locking in longer-term wheat deals as they shift their feed mixes to compensate for lower corn supplies, according to reports. Producers initially resisted the switch, which is usually a temporary adjustment in the summer months after the U.S. winter wheat harvest.

US corn stocks down, soybeans up from 2010 numbers

Old crop corn stocks on September 1 totaled 1.13 billion bushels, down 34% from the same time in 2010, according to the U.S. Department of Agriculture. Of the total corn stocks, 315 million bushels are stored on farms, down 35% from a year earlier.

International Trade

Taiwan to purchase corn, soybean crops from US over next two years

Members of the Taiwan Agricultural Trade Goodwill Mission have agreed to purchase between $4.1 billion and $5.12 billion worth of crops from six U.S. states over the next two years. The deal calls for Taiwan to buy locally grown corn and soybeans from Wisconsin, Illinois, Indiana, Iowa, Ohio and Virginia, in an effort to strengthen import and export relations between Taiwan and the United States.

American Soybean Association releases farmer risk management proposal

The American Soybean Association has released its proposal for the 2012 Farm Bill, "Risk Management for America’s Farmers," which aims to help farmers manage the risks they face from adverse weather, crop disease and volatile commodity markets. The RMAF program would partially protect revenue losses by farmers of soybeans and other program commodities that result from low prices or reduced yields for their crops.

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