Grain du Coteau :...
Follow
Find
52.3K views | +26 today
 
Scooped by Stéphane Bisaillon
onto Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar)
Scoop.it!

Big Pat's Commodities Blog: Trends+Targets: Corn Soys+Meal Wheat Dollar

* "SETTLEMENTS WEDNESDAY DECEMBER 5/2012" *
* prices=the supply and demand of commercial trading *
* include short side in analysis *
Corn CH-premium to may 13
trend range: convergence flat lows-lower highs-low volatility
trading ranges: up-flat@top of trend range-consolidation=bearish
targets: (777 750)-725-685 653 (trading)

Soybeans SF-inverted
trend range: up-2nd day-new move-moderate volatility
trading ranges: up-suspect short covering-mixed buying-bullish
targets: 1566 (1511-1418)-1344 (trading)

Soybean Meal-SMF-inverted
trend range: up, narrow trading ranges=low volatility
trading ranges: flat@mid trend range, mixed buying=less bearish
targets: 490 468 (450-418) 393 (trading)

Wheat WH-premium to may 14
trend range: down, narrow trading ranges=volatile
trading ranges=flat@test of top of trend=less bearish
targets: (947-853) 815 782 728 684 (trading)

Cdlr CDZ-rolling dec to mar is evident
trend range: flat-consolidation, narrow ranges=low volatility
trading ranges: up@resistance, buying=less bearish
targets 10189 (10113-10046) 9934 9845 (trading)
more...
No comment yet.
Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar)
Your new post is loading...
Your new post is loading...
Scooped by Stéphane Bisaillon
Scoop.it!

E. I. du Pont de Nemours declares $0.38 dividend

E. I. du Pont de Nemours declares $0.38 dividend | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it
E. I. du Pont de Nemours (NYSE:DD) declares $0.38/share quarterly dividend, -22.4% decrease from prior dividend of $0.49.Forward yield 2.68%Payable Sept. 11; for shareholders of record Aug. 14; ex-div Aug. 12.
more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Syngenta says Monsanto's $2 billion break-up fee comes with caveat

Syngenta says Monsanto's $2 billion break-up fee comes with caveat | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

Syngenta (SYNN.VX) has said a $2 billion break-up fee that unwanted U.S. suitor Monsanto (MON.N) has pledged to pay if its proposed $45 billion merger failed would only apply in limited cases, leaving its shareholders exposed to the bulk of regulatory risks.

Swiss Syngenta, the world's largest maker of farming pesticides, told Reuters that based on its legal interpretation of Monsanto's proposal, the payment would only be triggered if so-called horizontal antitrust concerns were to trip up the deal. Monsanto has rejected this interpretation.

Antitrust experts refer to horizontal market power in the context of a merger of companies that have substitutable or directly competing products -- the standard case for regulators to intervene.

Other concerns could be about vertical market power, when a company merges with a supplier or with a company that refines or distributes its products, or conglomerate market power, which applies to a tie-up between companies with complementary but not interchangeable products, which is the case in seeds and pesticides.

Analysts at Bernstein Research and Bank of America Merrill Lynch in separate research notes on Friday cited Syngenta's top management as saying during a dinner with analysts in London that Syngenta shareholders would bear the risk of a deal getting blocked for non-horizontal antitrust reasons.

A Syngenta spokesman confirmed the remarks, saying Syngenta's legal team had concluded that Monsanto's proposal did not cover significant regulatory aspects. 

Bernstein analyst Jeremy Redenius said that if the interpretation is accurate, it would amount to a "huge omission" in the guarantees offered to Syngenta shareholders.

"It's surprising that the break-up fee would not cover that," he added.

Under the merger plan laid out by Monsanto, Syngenta shareholders would retain a stake of about 30 percent of the combined group.

In response, a Monsanto spokeswoman told Reuters the break-up fee would apply to any antitrust concerns, and referred to a June 6 letter sent by Monsanto to Syngenta's board of directors, which had been published by Syngenta.

"Our proposal as outlined in our letter is both clear and unequivocal: the $2 billion reverse break-up fee would bepayable by Monsanto if it is unable to obtain necessary global regulatory approvals – horizontal or vertical. This confusion reinforces the need for the companies to sit down for constructive and direct dialogue to advance these conversations," the spokeswoman said in a written statement.

Monsanto wants to combine its world-leading seeds business with Syngenta's pesticides business, the largest in the industry. Syngenta has rejected the offer as too low and refused to open its books.

It has also argued that regulators would consider the merged group's combined market power in seeds and chemicals, because the two industries were gradually converging, as efforts by firms including Bayer (BAYGn.DE), Monsanto and Syngenta show.

These companies are trying to become more efficient by developing seeds and pesticides in tandem and by developing sales and distribution strategies that integrate the two product categories.

Monsanto has argued that after the proposed sale of Syngenta's seeds business and some overlapping herbicides operations, regulators would not find any loss in head-to-head competition with its rivals.

Syngenta has embarked on a number of meetings with analysts and investors after reporting better-than-expected first-half earnings on Thursday last week.

At the time, it also reaffirmed its profitability targets, viewed as ambitious by some analysts, and highlighted the potential of new products in development, as it continued to argue its case for a strong future alone.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Syngenta says investors are supportive of standalone strategy

Syngenta says investors are supportive of standalone strategy | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

Syngenta’s earnings announcement confirms it still does not have a long-term vision or plan that would create the same value as Monsanto’s very attractive 449 Swiss franc [per share] proposal”, Monsanto Chairman Hugh Grant said in an emailed statement following the Swiss firm’s results on Thursday.


“I think that the Syngenta board was pretty clear that the deal was inadequate from a variety of perspectives, including protecting the Syngenta shareholders”, Leibowitz said.

Monsanto wants to combine its world-leading seeds business with Syngenta’s own seeds and pesticides.

“Monsanto remains ready to discuss with Syngenta a combination that would provide highly attractive returns to shareholders and would represent a transformational opportunity for global agriculture to meet the needs of farmers and broader society”.

“The ball remains in their court”, Grant said.

The Swiss-based group, for which Monsanto has unveiled a $45bn takeover offer, said that the market for GM crops was “slowing”, having reached “saturation levels” in markets where the technology is permitted, and still being restricted in the likes of Europe, Japan and Russian Federation.

Furthermore, Fraley said Monsanto is open to increasing its bid, but that is “dependent on the ability to understand more information about Syngenta than is publicly available…and the only way to do that is through a negotiation”. “They are absolutely supportive of what we are embarking on here”, CEO Michael Mack told Reuters on Thursday. He reiterated that Monsanto’s offer was “woefully short” and failed to do enough measures to give “further serious consideration” to the proposed merger. “And that’s before looking at the underlying offer, which was completely inadequate”, said Mr. Mack.

Baader Bank analyst Markus Mayer said the first-half figures “might be the base for Monsanto to come up with a new offer which has at first only a higher cash proportion to raise pressure and to bring Syngenta management back into negotiations and then come up with a higher offer price”. Revenue fell nearly 10 percent, to $7.63 billion from $8.51 billion, hit by the strong dollar. Its operating income was $1.56 billion, down by 9%.

These products excluded Acuron, a herbicide for clearing weeds from corn fields, for which Syngenta doubled to $500m its estimate for peak sales potential, after a “successful” launch in the US, where it received approval in April.

Syngenta’s sales and EBITDA rose 3% and 21%, respectively at constant exchange rates. Low crop prices have depressed demand for crop-protection products and seeds. Monsanto’s current proposed bid (CHF449/share) implies FY15F EV/EBITDA of 14.8x (at FY15F guidance), a ~30% premium to two year averages.

“We did talk to quite a few more than our top five shareholders, some of which are also shareholders of Monsanto…”

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Chinese businessmen invest in Australian agriculture

Chinese businessmen invest in Australian agriculture | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

BEIJING, July 24 (Xinhuanet) -- Australia is poised to ride a wave of foreign investment in its agricultural sector. Farms and cattle stations are becoming increasingly attractive to overseas investors - especially Chinese buyers looking for beef sources in other countries.

The backdrop for Hailiang’s recently opened Australian office is Sydney’s picturesque harbour - but the focus for Carson Tang and Nathan Gan is much more rural - and with good reason.

"Because of the large population base in China - 1.4 billion people an the population has left us short of supply and that has caused some food issues but Australia only has 24 million people and vast land," said Nathan Gan.

In March, Hailiang took its first investment steps into that vast land - buying almost $30 million (USD) worth of cattle stations in Queensland.

It’s among a growing number of Chinese investors who’ve either bought rural properties here - or are looking to invest.

"Everyone knows Australian beef is known for its good quality, disease free high end - so that’s why we are investing here," Gan said.

And the timing is good.

The Free Trade Agreement between Australia and China is expected to remove some of the barriers for overseas investors. And after years of drought and dropping prices - banks are looking to sell foreclosed properties.

Another factor making Aussie cattle like these even more attractive to overseas buyers is the sinking Aussie dollar which has been hovering around 74 US cents.

"It’s not purely on return of investment - but to look at it from another angle - to have a strategy on how to feed the growing population," said Dominic Ong, from Knight Frank.

But not everyone is happy about Australian farms being snapped up by overseas investors. Australia’s government wants to tighten rules on foreign purchase of agricultural land and create a foreign ownership registry. Hailiang says it has no plans to change its recently purchased properties.

"We want to keep the local operation team - we want to keep it as local as possible," said Tang.

"We will further invest in things like irrigation so we will have more investment and along with that we will probably employ more staff there," Gan said.

At the moment - the majority of overseas buyers are Chinese. But experts expect the low dollar and availability of rural opportunities to attract investors from other countries as well.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Russian bank pumps millions into pig farm project

Russian bank pumps millions into pig farm project | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it
A US$336m pig farm project has begun in Russia, thanks to Russian bank Sberbank CIB’s approval of a major loan for the initiative.
more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Pork production will far surpass beef in 2015

Retail beef prices broke records in June, while pork prices are moving in another direction.

Beef prices averaged $6.11 per pound in June, economists Steve Meyer and Len Steiner said in their Daily Livestock Report July 20.

Choice beef prices reached an average of nearly $6.41/lb. The average price of all beef was 11 percent higher than a year ago.

“Retailers have been steadily increasing retail beef prices given lower beef supplies and record cattle values,” they said.

In June 2011, retail steak prices were selling at a 164 percent premium to the average price of a pork chop. According to Meyer and Steiner, that now stands at 207 percent.

And, what a difference a year makes for retail pork prices. June’s average retail pork price of $3.70/lb. is 10 percent lower than a year ago.

“The spread between pork and beef prices at this point is $2.41/lb., compared to $1.39 a year ago and $1.31 in June 2011,” Meyer and Steiner said. “This is the largest pork/beef spread we could find, and it reflects the divergence in terms of supply availability between the two species.

“Pork production will far surpass beef output in the U.S. in 2015.”

USDA forecasts beef production in 2015 of nearly 23.9 billion lbs., with pork production at 24.59 billion lbs.

“Per capita beef consumption remains larger, however, in part because the U.S. is a much larger importer of beef than pork.”

Meyer and Steiner said retailers have gradually been lowering pork prices, but the rate lags behind wholesale prices.

“Pork margins are in excellent shape for retailers, and we suspect some of those great margins are going towards subsidizing lighter beef margins,” they said.

A good example would be wholesale prices. Those prices were down 49 percent in June compared to a year ago, while retail ham prices remained nearly the same.

Retail bacon prices have come down, they said, adding bacon sells well throughout the summer.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Cargill opens its first Canadian canola refinery in Clavet

Cargill opens its first Canadian canola refinery in Clavet | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it
CLAVET, SK – After testing and optimizing its oil throughout the spring, the largest Cargill refinery in North America celebrated its grand opening Thursday.“The economic contribution from this plant every year will be about $125 million in the province,” explained Saskatchewan Agriculture Minister Lyle Stewart.“This plant could’ve gone other places, and we’re happy Cargill picked Saskatchewan,” he said.Cargill’s Corporate Vice President Scott Portnoy said all production now happens within 100 kilometres of the facility.“It’s unique that you’d have everything right here in the province of Saskatchewan,” Portnoy said.The facility is currently processing about 4,500 tonnes of canola each day, and created 30 new positions in Clavet. Now the refinery hopes to ramp up its output.“We’re at about 65 per cent of its effective capacity,” said Portnoy.“Now it’s just a matter of more volume through the facility, more customers through the facility,” he explained.Cargill produces all of the oil used in McDonald’s restaurants across the U.S. and Canada. The restaurant chain’s strategic supply vice president Mike Butkus said the new refinery will help with the expansion of its products.“Cargill provides a lot of different products for us, different food items: oil, some of our sauces, beef, chicken, eggs, to name a few,” he explained.Cargill’s grain elevator and crush plant opened in Clavet in 1996.
more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

New approach to cattle marketing

New approach to cattle marketing | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

A new service will allow cattle buyers and sellers to trade cattle from their computers, smart phones or tablets. During the recent Cattle Industry Summer Conference in Denver, representatives of AgriClear, a division of the TMX group, demonstrated their service to interested cattle traders and media.

Nevil Speer, who many in the industry know from his years on the animal science faculty at Western Kentucky University, serves as vice president for U.S. operations for the new company. Speer says using the online, attribute-based system costs buyers and sellers $6 per head. There are no listing fees – the transaction fees are paid once the buyer and seller agree on the sale.

The service also has built in a system of payment assurance, in which the buyer places money in a custodial account prior to the cattle shipping. Once the cattle arrive properly, the funds are released to the seller.

Buyers can set up a “watch list” in the AgriClear system to alert them when cattle meeting their specifications are listed. Listings include cattle breed type, number, weight, location, preferred shipping dates and any other attributes the buyer wishes to list, such as details on vaccination programs, weaning practices or past performance history.

Sellers also list their asking price, and potential buyers can either accept that offer or place a counter offer on the cattle. Buyers and sellers can place time limits on their bids. Once the buyer and seller agree upon a price, they enter closed negotiations on contract details. And when the buyer takes delivery of the cattle, the system accommodates post-sale negotiations to account for discrepancies such as lighter-than-expected weights or a different head count.

Sellers who plan to run similar listings over time can save a template containing most of the needed information about their cattle, to save time in entering sale information.

Interested buyers and sellers can register and form an account on the AgriClear website, explore the site and monitor sale activity. They need, however, to enter bank-account information into the secure system prior to bidding on cattle.

 

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Syngenta Says Profit, Pipeline Show Company Can Remain Independent

Syngenta Says Profit, Pipeline Show Company Can Remain Independent | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

Swiss agrochemical maker Syngenta AG used an upbeat earnings report to bolster its case against a $45 billion takeover bid from U.S. rival Monsanto Co., saying the numbers prove it can stand alone with a product pipeline stretching to the end of the decade.

“A lot of the new products are starting to pay off,” Chief Executive Officer Mike Mack said in a phone interview on Thursday, adding that the increase in profit and sales in the first half is the best answer to Monsanto’s unsolicited offer. “And the pipeline in 2016 and beyond is going to steer this company to the end of the decade.”

St. Louis-based Monsanto, the world’s largest seed company, has approached Syngenta, the biggest pesticide maker, about a deal three times since 2011. Its most recent proposal, a cash-and-stock bid, was made in April. Syngenta has argued that Monsanto’s proposal is simplistic, may be blocked by regulators and is too low considering a strong pipeline of innovative crop-protection offerings.

Syngenta’s earnings before interest, tax, depreciation and amortization reached $2 billion in the first half of the year. Analysts had predicted $1.91 billion. The earnings dropped 5 percent on a reported basis, hurt by currency swings such as the stronger dollar, but gained 21 percent at constant exchange rates.

‘Standing Proud’

The stock was down 1.6 percent as of 11:00 a.m. in Swiss trading, valuing the company at 37.1 billion Swiss francs ($40.8 billion). Before today, shares of Syngenta, which also competes with Bayer AG, BASF SE and Dow Chemical Co., gained 26 percent this year.

“The pressure on Syngenta management to accept the offer from Monsanto is now less,” said Bernd Pomrehn, an analyst at MainFirst Schweiz AG who rates the stock outperform. “The improvement in margins strengthens their position in negotiations with Monsanto. The trend is positive. Management has delivered.”

Monsanto CEO Hugh Grant said today he’s remains ready to discuss a combination with the Swiss rival, adding that “Syngenta’s earnings announcement confirms it still does not have a long-term vision or plan that would create the same value as Monsanto’s very attractive 449 francs a share proposal.”

At constant exchange rates, sales in Europe, the Middle East and Africa rose by 13 percent, while climbing 1 percent in Latin America, declining 7 percent in North America and dropping 1 percent in the Asia Pacific region.

Shareholder Meetings

“I think in these six months we can stand proud,” Chief Financial Officer John Ramsay said in a telephone interview. “We can see the results that we’ve been talking about for the last two years start to come through. That determination has started to deliver.”

Monsanto’s Grant this month said that there’s increasing impatience among Syngenta shareholders about the refusal of the Swiss company to engage in takeover negotiation, after he had traveled to Europe to meet with about 75 investors to promote his unsolicited bid.

Syngenta’s Ramsay said shareholders should be encouraged by today’s results.

“These are very difficult market conditions, the worst we’ve experienced for years and we’ve been saying for some time to our shareholders that they need to give us time to come through with our strategy, come through with our operational leverage program,” the CFO said.

The company today confirmed its full-year forecast for sales excluding currency swings and Ebitda including currency moves to be broadly unchanged.

Syngenta said Thursday that its expanded pipeline of new products has a sales potential of more than $3.6 billion. A new herbicide called Acuron that the Swiss company introduced in April could reach revenue of as much as $500 million, double what the company had budgeted for.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Fertilizer maker CF Industries in merger talks with OCI

Fertilizer maker CF Industries in merger talks with OCI | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it
U.S. fertilizer maker CF Industries Holdings Inc. is in advanced merger talks with Amsterdam-listed chemical company OCI NV, the Wall Street Journal reported.The tie-up could be reached as early as this month, the Journal reported, citing people familiar with the matter.Shares of CF Industries, which has a market value of about $14.8 billion, were up 7.4 percent at $67.22 after the report.Both CF Industries and OCI were not immediately available to comment on the report.(on.wsj.com/1REe7bJ).The terms of the deal the two companies are discussing are unclear, and a transaction may not materialize, the WSJ said.The deal may be structured as a so-called inversion -- a type of combination in which CF Industries moves its tax headquarters abroad, the Journal said.OCI's market capitalization was $5.5 billion euros ($5.5 billion) based on the company's outstanding shares as of Dec. 30.
more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Syngenta spars with suitor Monsanto over takeover

Syngenta spars with suitor Monsanto over takeover | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it
Syngenta (SYNN.VX) and unwanted U.S. suitor Monsanto (MON.N) squabbled over an earnings report from the Swiss pesticides maker on Thursday, with both sides claiming it strengthened their case in a $45 billion takeover battle.Monsanto wants to combine its world-leading seeds business with Syngenta's own seeds and pesticides. Syngenta has rejected the proposal and refused to open its books, despite the offer of a $2 billion cash payment should the transaction fail to win regulatory approval.Adjusted earnings per share from Syngenta fell 6 percent and sales fell 10 percent in the first six months of the year but still exceeded average estimates in a Reuters poll. Adjusted for currency swings, sales rose 3 percent.Syngenta also said it was sticking with profitability targets viewed as ambitious by some analysts, and highlighted the potential of new products in development, such as fungicides for vegetable and cereals farmers, which it believes give it a strong future alone, despite Monsanto’s repeated approaches."We said no in 2011, we said no in 2012, we said no in 2015. What part of no don't they understand?" Chief Executive Michael Mack told a press conference at the group's Basel headquarters.Baader Bank analyst Markus Mayer said the first-half figures "might be the base for Monsanto to come up with a new offer which has at first only a higher cash proportion to raise pressure and to bring Syngenta management back into negotiations and then come up with a higher offer price".For now, though, Monsanto is standing firm."Syngenta's earnings announcement confirms it still does not have a long-term vision or plan that would create the same value as Monsanto's very attractive 449 Swiss franc (per share)proposal," Monsanto Chairman Hugh Grant said in a statement.RELATED COVERAGE› Syngenta says investors are supportive of standalone strategy"Monsanto remains ready to discuss with Syngenta a combination that would provide highly attractive returns to shareholders ... The ball remains in their court."Syngenta shares were down 2 percent at 395.40 francs at 0815 EDT.UNDER PRESSURELast week, Monsanto said it was a long way off a hostile bid for Syngenta and focused on a negotiated deal.Syngenta is under pressure from some shareholders. Hedge fund Paulson & Co has taken a stake in the Swiss company and could push for it to accept an offer form Monsanto, people familiar with the matter have said, while Henderson, one of Syngenta's top-20 investors has criticized it for limiting communication with all but the biggest investors to a YouTube video.Mack said on Thursday Syngenta's stance was backed by a broad base of important investors.The company also said it was sticking with its target for a 24-26 percent margin on earnings before interest, taxes, depreciation and amortization (EBITDA) over sales for 2018. That is seen by many analyst as a challenge, coming from a 19.3 percent margin in 2014 and a projected 20 percent for this year.Syngenta is trying to catch up with key rivals, mainly through cost cuts in its underperforming seeds business. Its closest peer in pesticides, Bayer's (BAYGn.DE) CropScience unit, had an EBITDA margin of 24.8 percent last year while Monsanto had 29 percent.The Swiss group, the result of Novartis and AstraZeneca pairing up their agribusinesses in 2000, also drew attention to its development effort, predicting $3.6 billion in peak sales from products to be launched by 2022.It even pointed to $3 billion in annual sales potential as far in the future as 2032 from new hybrid wheat seeds it is working on."I completely reject any suggestion that the company is incomplete in any way," Mack told Reuters in a phone interview.MainFirst bank analyst Bernd Pomrehn said the Swiss firm had options. "These results certainly put Syngenta in a strong position for negotiations on a combination with any other player in the industry. We consequently confirm our "Outperform" rating," he said.
more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Cargill must sell German plant to finalize ADM chocolate deal

Cargill must sell German plant to finalize ADM chocolate deal | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it
The European Commission has approved Cargill’s acquisitions of ADM’s chocolate business on the proviso it sells a plant in Manheim, Germany.
more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

K+S rejects PotashCorp’s new attempt at takeover talks

K+S rejects PotashCorp’s new attempt at takeover talks | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

FRANKFURT, Germany (Reuters) — Salt and fertilizer group K+S has rejected a new attempt by Canada’s PotashCorp to entice the German company into takeover talks, a K+S spokesperson said today.

K+S earlier this month rebuffed PotashCorp’s 7.9 billion euros ($8.65 billion) proposed bid of 41 euros per share as too low and suggested the suitor was planning to shrink the company.

A K+S spokesperson said PotashCorp chief executive officer Jochen Tilk had met the state premier of the German regional state of Hesse, where K+S is headquartered, and had handed over documents about PotashCorp’s plans to preserve jobs after a takeover. K+S was also given the documents.

“We’ve looked into these statements and concluded that they contain nothing substantial beyond what we had already been given in writing. That’s why we still see no basis for talks,” the spokesperson said.

A Hesse government spokesperson confirmed the meeting had taken place at the request of PotashCorp but declined to comment further. State premier Volker Bouffier has said he would fight to preserve K+S’s German sites.


A Germany-based spokesperson for Potash Corp said the company had in the meetings laid out the advantages of a tie-up for K+S and PotashCorp, while trying to allay the state of Hesse’s concerns.

K+S has suggested that about 40 percent of its German operations were at risk because PotashCorp has more cost effective idle capacity in Canada.

Analysts and investors say this is an exaggeration, citing prohibitive shipping costs from PotashCorp’s main hub in Saskatchewan to Europe.

PotashCorp previously committed funds to boost its annual capacity to more than 17 million tonnes over the next few years, up from almost 11 million tonnes in 2015, but it is now reining in production amid a boost in supply from major rivals Uralkali and Belaruskali, who stopped collaborating two years ago.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

DuPont Cuts 2015 Profit Forecast Amid Weaker Agriculture Demand

DuPont Cuts 2015 Profit Forecast Amid Weaker Agriculture Demand | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

DuPont Co. cut its full-year profit forecast more than analysts expected amid lower crop prices that is causing farmers to spend less on its pesticides and seeds.

Profit in 2015 will be $3.10 a share, DuPont said Tuesday in a statement. That compares with the $3.56 average estimate of 12 analysts in a Bloomberg survey. DuPont said it also lowered its forecast from $4 previously to account for the July 1 spin off the performance chemicals unit and a stronger dollar.

Net income dropped to $1.03 a share from $1.15 a year earlier, Wilmington, Delaware-based DuPont said. Profit excluding some items was $1.18 a share, trailing the $1.21 average of 15 analysts. Sales fell to $8.6 billion from $9.71 billion, missing the $8.98 billion average estimate.

The spinoff of the chemicals unit, renamed Chemours Co., allows Chairman and Chief Executive Officer Ellen Kullman to increase focus on more profitable businesses such as seeds and pesticides. Earnings in the agriculture unit fell 6.9 percent as low corn and soybean prices eroded farmer finances.

“This reliance on ag looks to us to be a negative over the near term and potentially the longer term as well, as we see an extended bear market in ag as possible,” Chris Shaw, a New York-based analyst at Monness, Crespi, Hardt & Co. who rates the shares neutral, said in a July 23 note.

The earnings report is the first since Kullman defeated activist investor Trian Fund Management’s four board nominees, including CEO Nelson Peltz, in a May proxy contest. Trian, DuPont’s fifth-biggest shareholder, hasn’t ruled out another fight for board seats.

Kullman, meanwhile, plans to cut $1 billion of expenses this year and she intends to use a $4 billion dividend from Chemours to buy back shares over 18 months.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Russia exported 1.172 MMT of wheat in June 2015

Russia exported 1.172 MMT of wheat in June 2015 | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it
25.07.2015

This is almost twice as much as shipped in May (an export duty was still valid until May 15) and 2.8 times more than in June 2014.

The top destination was its traditional buyer: Egypt (24%). It was trailed by Turkey with 14% and Iran with 12%.
In addition, Russian exported 306.86 KMT of corn in June 2015. This is up 10.4% from May and 2.3 times more than in June 2014.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

China Culled 20% of Hog Herd : Reduced Supply Opens Door to Higher Imports

China Culled 20% of Hog Herd : Reduced Supply Opens Door to Higher Imports | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

MAHA (DTN) -- China has culled 20% of its hog herd in the last 18 months, forcing prices higher and boosting hog producers' profit margins. 

That could lead Chinese producers to begin expanding herds. But with consumption declining far less than production, more imports are needed to fill the gap, according to the third-quarter pork report from Rabobank Food and Agribusiness Research and Advisory.

That may be good news for U.S. pork producers in the last half of 2015 and into 2016. 

"After a challenging start to 2015, U.S. hog prices and producer profitability have improved immensely during Q2, helping to bring the outlook for the year much closer to the 'black' than three months ago," the report stated. Rebounding supplies may be able to fill a portion of China's anticipated demand. 

The size of China's sow herd imploded by close to 22% between October of 2013 and March of 2015, DTN Livestock Analyst John Harrington said. Total liquidation over those six quarters equaled 11 million head, nearly twice the size of the entire U.S. breeding herd as of June 1, he said.

The combination of China's cut in domestic production and projections for surging growth in China's per capita pork consumption over the next decade could be a great opportunity for global exporters, the report stated. ... 

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

China's rising commodity exports changing nature of trade: Russell

The world is used to seeing China as an importer of raw materials and an exporter of manufactured goods, but a change is occurring that has global implications for commodities.While China is stil
more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

U.S. pork, ham stocks hit record high in June; turkey shy 10-year average

U.S. pork, ham stocks hit record high in June; turkey shy 10-year average | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

CHICAGO (Reuters) - U.S. pork held in freezers marked a record high in the month of June, bolstered by increased hog production following industry efforts to control the deadly pig virus, experts said after the government’s monthly cold storage report on Wednesday. 


The U.S. Department of Agriculture (USDA) cold storage report for June showed total pork inventories at 632.2 million lbs, a record for the month that topped the 2012 June high of 592.9 million.


"Pork stocks have been high all year. And, usually big production creates big stocks," said independent industry analyst Bob Brown in Edmond, Oklahoma.


Lower feed costs along with the less-severe Porcine Epidemic Diarrhea virus (PEDv) fueled hog herd growth, resulting in a 7.2 percent rise in hog slaughter and 6.8 percent bump in pork production from January to the week ending July 18.


Total hams, the largest single number in the pork category, were at 180.7 million lbs, a record last month that surpassed June 2013's 161.6 million top, according to Missouri-based Doane Advisory Services economist Dan Vaught. 


The ham comparison appears larger when made to last year's PEDv-stricken supply, said analysts. Furthermore, end-users typically stash hams into storage as early as April for Thanksgiving and Christmas holiday use, they said.


"To some extent, certainly the idea that we're going to run short on turkeys is probably encouraging ham storage as well," said Vaught. 


The amount of frozen whole turkeys, including toms and hens, in June 2015 totaled 262.0 million lbs. That was up 18.7 million lbs from May, but down 6.9 million from June 2014.


Based on the 10-year average of 273.2 million lbs, the industry is down from the normal amount for this time of year due to the avian influenza outbreak that primarily hurt turkey flocks in Minnesota, Vaught said.


"We're looking at relatively short numbers, but the industry will probably aggressively work to limit any reductions by funneling more turkeys into the whole-bird category," he said. 


Beef inventories in June were at 467.1 million lbs, down 9.2 million lbs from the month before but up 108.9 million lbs compared to a year earlier.


The government's beef June beef stocks belies the respective 7.0 percent and 4.7 percent year-to-date decline in slaughter and product output.


"Beef's increase versus last year appears to be in the boneless category, likely due to the huge influx of beef imports from Australia and New Zealand," Brown said.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Alberta : Cargill expands canola crush capacity


Alberta’s canola growers have a new processing plant, but the fate of another planned project is uncertain.

Cargill officially opened its second crush facility in Canada in Camrose last week.

“It is the first major investment in 30 years here in Alberta, so it’s a significant step forward,” said Jeff Vassart, president of Cargill Canada.

“It makes us the largest canola processor in Canada now.”

The grain industry giant has the capacity to crush 2.5 million tonnes of canola annually, with one million tonnes in Camrose and another 1.5 million tonnes at its plant in Clavet, Sask., which opened in 1996.

To put that in perspective, Canada shipped 2.4 million tonnes of canola to Japan last year. The Asian country is one of Canada’s oldest and largest export markets.

However, even as Cargill celebrated the grand opening of its new plant, the fate of a planned expansion of Bunge’s facility in Fort Saskatchewan, Alta., is unknown.

Bunge refused to provide an update on the project, which was announced in September 2011.

A similar expansion project at Bunge’s facility in Altona, Man., that was announced in October 2010 was completed in the fall of 2014.

If there is an expansion taking place in Fort Saskatchewan, it is not obvious from the outside.

Phil Deobald, an agronomist with UFA Farm and Ranch Supply in Fort Saskatchewan, has driven by the plant numerous times.

“I haven’t seen anything going on there yet, and I haven’t heard any rumours or anything that they’re expanding,” he said.

Ward Toma, general manager of the Alberta Canola Producers Commission, has heard there have been some upgrades at Bunge’s Fort Saskatchewan plant but he has no idea whether that entailed a doubling of capacity.

He said Cargill’s Camrose facility is a real boon for the province’s canola growers.


“You’ve got another bidder. That’s always a good thing,” said Toma.

“You have another strong delivery point that’s not necessarily tied up by rail issues running into the Rockies.”

He said Camrose is a good location for the plant because it is in the middle of central Alberta where 40 percent of the canola crop is produced.

Toma said growers in east-central Alberta did not have a lot of delivery points for their canola.

“This will really help them with their options for delivery rather than being held captive to one point or maybe two points,” he said.

Patti Miller, president of the Canola Council of Canada, said Cargill’s Camrose investment helps move the industry toward its goal of crushing 14 million tonnes of canola domestically by 2025, up from 6.9 million tonnes so far this year with two weeks left in the 2014-15 crop year.

“It really is positioning the Canadian industry to be extremely competitive in the international market,” she said.

“I mean, we’ve got new, modern, efficient, sustainable plants. That’s going to stand us in really good stead.”

Most of the investment in canola processing over the last decade has occurred in Saskatchewan, where Cargill, Richardson International and Louis Dreyfus have spent hundreds of millions of dollars.

With the addition of Cargill’s Cam-rose plant, it won’t be long before Canada is crushing more canola than it exports.

Vassart said the Camrose facility has been buying canola since May, and the plant is already operating near full capacity.

It will produce 430,000 tonnes of oil and 570,000 tonnes of meal a year.

The unrefined oil will be shipped to export markets with an emphasis on meeting growing demand in Asia.


Vassart said the company has already developed a good customer base for the meal through its Clavet operation.

“We see consistently strong de-mand from a core group of customers that have increasing needs, and we’ll be able to meet them.”

Cargill chose Camrose for its crush facility because it is a good canola growing area and the company has experience working with farmers in the region with its seed export business.

“They do an excellent job of growing a significant amount of canola in this geography, and so for us it gives us a lot of confidence with the experience we’ve had with farmers here over the years,” said Vassart.

He expects growers will be pleased with unload times.

“It’s very efficient for farmers who are hauling here to be able to get on site, unload and leave within literally minutes.”

The facility will employ 60 permanent employees, many of them locals.

Vassart has concerns about this year’s canola crop, but he said it is a long way from being in the bin and recent rain has improved crop condition.

“It’s not going to be the bin buster we’ve had the last couple of years, but we feel that there still will be an adequate supply to be able to run the new facility here and maintain the export programs we’ve had historically,” he said.

The plant may be forced to extend its normal drawing radius of 200 to 250 kilometers to acquire enough feedstock to fuel its operations in 2015-16.

Vassart said there is potential for expansion at the Camrose facility.

He also said it may not be the last new plant Cargill builds in Canada, given the growing demand for canola oil and the canola council’s goal of growing 26 million tonnes by 2025.

“To say that it will be our final investment, I would say no,” he said.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Look to crop insurance first: Ritz

While many crops across Western Canada are withering under intensifying drought, Agriculture Minister Gerry Ritz says ad hoc programs are not the answer should producers require assistance.
However, tax deferral will be available for affected ranchers.

“We don’t need ad hoc (assistance), we’ve got a very comprehensive system of business risk management,” said Gerry Ritz, speaking in Winnipeg last week. “There’s four different pillars in that, and of course crop insurance is first and foremost the first line of defence.”

AgriStability will also be able to assist producers, said Ritz, noting that the five-year incoming averaging period the program relies on is designed to stabilize farm returns in years where production or profit fall due to poor weather or other factors beyond producers’ control.

“The closest thing that I would consider along with the ministers that are affected — we’ve had this discussion in Charlottetown as late as late week — would be AgriRecovery,” he said.

Tax deferral

Ritz noted that crop insurance has also been expanded to include pastureland and forages, both of which have been affected by a lack of rainfall in many areas of Western Canada.

Southern Manitoba has largely been spared from dry conditions, with many areas receiving relatively normal precipitation. However, farther north and in areas like Dauphin, Gilbert Plains, Alonsa, Mossey River, Roblin and Ochre River the situation has been severe.

Ranchers in those regions will eligible to apply the Livestock Tax Deferral Provision, announced by Minister Ritz on July 23.
The designation allows livestock producers facing feed shortages in prescribed drought regions to defer a portion of their 2015 sale proceeds of breeding livestock for one year in order to help them replenish stock the following year. Proceeds from deferred sales will be included as part of the producer’s income in the next tax year.

To defer income, the breeding herd must have been reduced by at least 15 per cent. If this is the case, 30 per cent of income from net sales can then be deferred. In cases where the herd declines by 30 per cent or more, 90 per cent of income from net sales can be deferred, according to Agriculture and Agri-food Canada.

“This tax deferral will provide producers with the flexibility they need to make decisions in the best interest of their individual operations,” said Ritz. “We want to assure producers that are caught in this, that what they need will be delivered in a timely manner.”

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Cattle producers ask Ottawa for drought help

Cattle producers ask Ottawa for drought help | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

Saskatchewan cattle producers are the latest group to call for government help to deal with a drought that has withered crops in parts of the Prairies.

The Saskatchewan Stock Growers Association has asked Ottawa for tax deferrals for those forced to sell cattle due to dry conditions.

President Doug Gillespie says hay yields in some parts of Saskatchewan are as much as 70 per cent below normal. Producers may be forced to sell part of their breeding herds because they don't have enough to feed them.

Gillespie said the Saskatchewan government has helped by opening up more Crown land for grazing and by changing some crop insurance rules.

The federal government could help as well, he suggested.

"We believe that implementing the livestock tax deferral provision will help ease the financial pain for producers that are selling into a depressed market for bred cows." 

Things are also bad in Alberta, where counties have been declaring a state of agricultural disaster. On Tuesday, Leduc and Cypress joined Sturgeon, McKenzie and Parkland counties in seeking government help for ruined crops.

The drought in Alberta is affecting cereal and oilseeds crops and hay for livestock.

Leduc Mayor John Whaley said producers are dealing with extremely low soil moisture and in some cases with grasshopper infestations.

"By making this declaration, we are focusing attention on this issue and are encouraging other levels of government to provide support where possible," he said in a release.

Government help could include reduced rental rates for dugout water pumping, drought disaster loan programs and federal livestock tax deferrals, he suggested.

Alberta Agriculture Minister Oneil Carlier said much of any financial help would come through insurance, so farmers and ranchers should consult their coverage providers. He said he has instructed the province's Agriculture Financial Services Corp. to be ready with extra staff to deal with an expected spike in claims.

"It's still too early to tell if anything else needs to be done. There has been some scattered moisture throughout the province," Carlier said.

"The programs in place with AFSC and with the federal government are there and available when needed."

Federal Agriculture Minister Gerry Ritz said Ottawa will do what it can to help producers in parts of the Prairies that are dealing with drought.

He said the federal government will consult with the provinces before taking action.

"Of course the first and foremost line of defence in any drought or flood situation is crop insurance," he said.

Ritz said the federal government will consider allowing cattle producers to defer taxes if they have to sell off animals due to the price and availability of hay, but he said it is early yet.

Recent rain could actually serve to complicate the harvest.

Harry Brook, a crop specialist with Alberta Agriculture, told the Red Deer Advocate that the precipitation will spur fresh growth in fields from seeds that have been dormant in dry soil.

"You're going to have crop that's mature and ripe. Then you're going to have this stuff that's as green as grass," Brook said. "Trying to harvest it is going to make it difficult because it invites a storage problem. You have quality issues as well."

Carlier said he doesn't foresee a need to declare a provincewide state of agricultural emergency yet.

"It's hard to believe, talking to the ones that are hardest hit, that there are counties and districts that are doing OK — at least close to normal, maybe a little below normal, but are doing all right. They've had the moisture. It's a little bit spotty."

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Caterpillar resists calls for deeper spending cuts in

Caterpillar resists calls for deeper spending cuts in | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it
  • Caterpillar (NYSE:CAT) fell 3.5% in today's trade after cutting revenue guidance for the year during its Q2 earnings report while noting a "relatively stagnant" global economy.
  • With sales running at ~25% below the level of three years ago, analysts in today's earnings call asked CEO Doug Oberhelman if he thought deeper cost cuts are needed; while the CEO promised to slash spending if the global economy gets much worse, he said CAT wants to retain enough capacity so it can be ready to take advantage of an eventual recovery.
  • Oberhelman tries to see the bright side of things: Companies continue to reduce spending on equipment, maintenance and even spare parts, so CAT's mining "trucks and ancillary equipment are being used longer and longer and longer," meaning the miners will have to buy new trucks at some point.
  • Sales will heavily depend on what happens to the global economy, but CFO Brad Halverson says if  CAT's forecast of lower H2 sales proves accurate, it would be the first time since the 1930s the company has suffered three straight years of decline.
  • Wells Fargo keeps its Market Perform rating on CAT while saying the demand trends indicated by the company may have a negative implications for Cummins (NYSE:CMI), Terex (NYSE:TEX) and Deere (NYSE:DE).
more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Torch River short-line rail facility full steam ahead

Torch River short-line rail facility full steam ahead | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it
Setting up a short-line railway takes a good deal of patience and determination, but Saskatchewan farmers are finding it’s a worthwhile endeavour.“I think at the end of the day this is definitely going to be well worth it to our farmers,” said Wayne Bacon, farmer and president of Northern Lights Rail. Northern Lights Rail is on track to becoming the 14th short-line in Saskatchewan. The 37-mile track connects Melfort and Birch Hills.At interview time in early June, Bacon hoped to be running cars by July, but he had to tie up a few loose ends. The short-line’s locomotive needed to be transported from Humboldt, and then certified. The short-line was also waiting on paperwork before its track could be certified. Bacon expected to have the locomotive and outstanding paperwork in place shortly.“So I think things are getting put together here right now,” he said.Bacon said the paperwork had been the biggest challenge to setting up the short-line. Other communities interested in purchasing a short-line should find a good consultant to wrangle paperwork, he said. They should also talk to someone who’s been through the process, he added. Northern Lights Rail worked closely with Ron Shymanski, chair of Torch River Rail, Bacon said.Torch River Rail ran its first train in July 2008. But getting the short-line up and running wasn’t easily done. The RM of Torch River was tasked with buying the line from Canadian Pacific (CP). Under the Canada Transport Act, CP would have to sell the line at net salvage value to the RM.
more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Singapore Freezes Two Bank Accounts in Connection With 1MDB Probe

Singapore Freezes Two Bank Accounts in Connection With 1MDB Probe | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it
Singapore police froze two bank accounts as part of an investigation into 1Malaysia Development Bhd., the troubled state-investment fund with direct links to Malaysia’s Prime Minister Najib Razak.
more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Canada data help oilseeds beat sagging grains

Canada data help oilseeds beat sagging grains | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

The dollar eased a little further in early deals on Wednesday, but still crop futures struggled to exploit it, in terms of making price gains.

The ideas around at the end of a, more positive, last session that headway would prove difficult to extend were being realised, at least as of 08:30 UK time (02:30 Chicago time), with the improved US row crop-growing weather a depressant on prices.

July is a key month in particular for US corn, bringing the heat-sensitive pollination process.

'Risk-off tone'

Corn Belt weather forecasts "are supporting a risk-off tone, as temperatures are expected to be above normal but remain unthreatening while additional moisture has been added to the northern and western growing areas", said Benson Quinn Commodities.

"If confirmed this will be a health mix for the corn crop over the next week."

CHS Hedging said that "the forecast is for above-normal temperatures for everywhere east of the Rockies which should be beneficial to the crops.

"Excessive temperatures are not foreseen, with the 10-14 day [outlook] returning to normal temperatures."

Historical comparatives

At RJ O'Brien, Richard Feltes said that the "unfolding of a more stable Midwest weather pattern including the absence of severe heat, the prospects for steady-to-higher crop ratings into early August, when nominal slippage is the norm… suggest further price erosion into early August".

Factors such as the prospect of increased producer selling, as decent crops become more of a likelihood than a hope, will also contribute to price pressure.

And strong, if not record, yields, are looking more likely than they were during last month's inundations.

Commodity Weather Group said years when the Corn Belt "had the most similar recent condition ratings saw final corn yields range from 0-9% above trend. 

"Soybean yields were 4-6% above trend in analogues that saw steadier ratings for the rest of the season and 4% below trend to 2% above trend in the years that declined in the balance of the year."

Futures ease

CHS Hedging reckoned that a yield downgrade, from current levels being expected by the US Department of Agriculture, was still in the offing.

"With the current crop conditions, many of the models are estimating a yield around 163 bushels per acre," below the USDA's estimate of 166.8 bushels per acre, the broker said.

Nonetheless, corn for September fell by 0.4% to $4.05 a bushel, while the best-traded new crop December lot shed 0.4% to $4.15 ¾ a bushel.

'Setting up for sideways trade'

Soybean futures in fact did better, adding 0.2% to $10.20 ½ a bushel for August, and 0.1% to $10.06 a bushel for the best-traded November contract.

In part, that is because August is more of key month for the US crop, in weather terms, bringing the sensitive pod-setting phase, while chart factors are broadly more supportive too, with contracts faring better at finding support from moving average lines.

"We may be setting up for sideways trade as market considers August weather, yield and acres," Benson Quinn Commodities said.

Canola downgrade

But the oilseeds market also received support from a downgrade by Canada to its official forecast for its canola crop, with the estimate cut by 625,000 tonnes to 14.3m tonnes, thanks to a yield downgrade.

"Growing conditions are extremely challenging across the western half of the Prairies, as the weather remains hot and dry," the AAFC farm ministry said.

Canola futures themselves gained 0.5% to Can$522.50 a tonne in Winnipeg for November delivery.

That said, elsewhere in the oilseeds complex, palm oil for October eased 0.4% to 2,209 ringgit a tonne in Kuala Lumpur, with investors cautious about whether a theme might have played out of likely soft production of the vegetable oil in Malaysia this month.

Ministry vs tour

AAFC cut its forecast for the domestic wheat crop too, by 2.6m tonnes to 27.1m tonnes.

However, this was well within the range of market expectations for the mainly-spring-wheat crop after the Prairies heat.

Besides, the market is taking cues largely too from a CWB wheat tour of the Prairies.

"CWB's tour of western Canada through the end of this week should confirm the concerns related to that crop as they move west," said Brian Henry at Benson Quinn Commodities.

"However, there wasn't anything wrong with the wheat in the pictures I saw from that tour on Tuesday."

'Not competitively priced'

In fact, Minneapolis spring wheat futures for September dropped by 0.6% to $5.53 ¼ a bushel, falling a little more precipitously than Chicago soft red winter wheat, which lost 0.5% to $5.22 a bushel for September.

US wheat prices overall remained under something of a cloud after results on Tuesday of an Egyptian tender highlighted their lack of competitiveness compared with Russian supplies, of which Egypt's Gasc bought 175,000 tonnes.

"Not only was US wheat not competitively priced, but neither was French or other origins" compared with Russian wheat, CHS Hedging said.

Mr Henry said: "The Gasc purchase, while not unexpected, points to the steep premium US soft wheat is being offered at."

more...
No comment yet.