Commodities: Page 34

International Trade

Algeria to increase corn, soybean imports

Algeria's animal feed agency, ONAB, will import 100,000 metric tons of corn and 50,000 metric tons of soybeans before the end of October, according to the agency's import arm. By the end of 2011, the numbers will reach 600,000 metric tons of corn and soybeans, compared with 200,000 metric tons in 2010, said Mustapha Zamoum, chief executive officer of ONAB's trading division.

Ukraine wheat, corn exports may double in next year

Ukraine may double its wheat and corn exports in the next marketing year, which began on July 1, according to researcher UkrAgroConsult. Estimates show the country exporting roughly 10 million metric tons of corn and the same amount of wheat, according to Serhiy Feofilov, director of UkrAgroConsult.

US corn, soybean futures hit highs on eroding yields

U.S. corn futures hit an 11-week high and soybeans reached their highest prices since February on continuing speculation of eroding yields due to continued drought, particularly in the Midwest, according to reports. Corn futures for December delivery hit $7.79 on Aug. 29, the highest for the most-active contract since June 9.

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US corn future trading limits to expand

The daily trading limit for corn futures on the Chicago Board of Trade will widen to 40 cents per bushel beginning on August 22, according to Commodity Futures Trading Commission. David Lehman, managing director at CME Group Inc., said historically low levels of supply, growing demand and other factors have significantly increased corn futures prices and volatility.

South America corn, soybean exports may rise

Corn and soybean crops in Argentina and Brazil, the largest exporters of the crops behind the U.S., may rise in response to increased demand from China, according to analysts. Argentina is expected to produce 26 million tons of corn in the 2011-2012 marketing year, up 18%, and 53 million tons of soybeans, up 7%, according to the U.S. Department of Agriculture.

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Feed Mill Management

Cargill joins venture to expand grain elevator

Cargill Inc. and Agrex Inc. have entered a 50-50 joint venture to expand an Indiana grain elevator at a cost of $20 million, according to reports. The expansion will triple the unloading and warehouse capacity for corn, soybeans and wheat being handled by the elevator.

Less corn may be used for animal feed

The latest World Agriculture Supply and Demand Estimates report suggests that more corn may be used for ethanol than for animal feed, bringing forward concerns from groups like the National Chicken Council, who say that such numbers could set a worrying precedent. The WASDE, from the U.S. Department of Agriculture, predict that 5 billion bushels of corn will be used for feed and related purposes in the 2010/2011 crop year, which runs through September, while 5.05 billion bushels will be used for ethanol and byproducts.

US corn harvest may reach 13.759 billion bushels

Analytics firm Informa Economics predicts U.S. farmers will harvest 13.759 billion bushels of corn and 3.203 billion bushels of soybean crop in 2011, according to reports. Informa estimates corn yields at 162.5 bushels per acre, based on harvested acreage of 84.7 million acres.

Feed Mill Management

South Korea to expand overseas corn, wheat farming

South Korea is making plans to secure 380,000 hectares of overseas farmland by 2018 in order to grow crops like corn and wheat and secure a more stable food supply as prices continue to rise, according to the country's agriculture ministry. The government plans to help South Korean companies lease arable land or buy stakes in overseas firms, prioritizing in countries such as the Philippines, Cambodia, Ukraine, Indonesia and Russia.

US ethanol producer uses wheat to battle corn shortage

U.S. ethanol producer The Andersons Inc. is mixing wheat into its corn-based biofuel in an effort to cut costs and diversify its supplier sources while fighting an increasing shortage in corn supplies. Andersons is mixing soft red winter wheat along with corn to produce the biofuel, according to Neill McKinstray, vice president and general manager of the company's ethanol division.

New system identifies ‘excessive volatility’ in corn prices

The Excessive Food Price Variability Early Warning System has been developed to work as a gauge of price swings for corn, wheat and soybeans and can help policy makers identify "excessive volatility," according to the International Food Policy Research Institute. The system determines the statistical probability of a price move on a particular day, based on trading in the prior 60 sessions, according to Carlos Martins Filho, a senior research fellow at the Institute who helped develop the model.

Flooding in US Midwest may threaten corn, soybean land in Corn Belt

Farmers are worried that flooding along the Missouri River may threaten cropland in the western Corn Belt, which they hoped would provide a strong harvest in the fall to make up for expected shortfalls in the eastern U.S. Midwest, according to reports. Analysts estimated that between 300,000 and 800,000 acres of farmland for corn and soybeans in Iowa and Nebraska may be threatened by floods.

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