WASHINGTON, Aug 12 (Reuters) - U.S. farmers will reap their largest soybean crop ever and the second-largest corn crop this year, mammoth harvests that will deflate an ethanol-fueled price boom, the government said on Wednesday.
Along with wheat, corn and soybeans are the foundation of the U.S. food supply. They are mixed into livestock rations, milled and crushed to become food and beverage ingredients, and employed as lubricants and feedstocks for motor fuels.
In its first estimate of the fall harvest, the Agriculture Department estimated the soybean crop would be a record 3.199 billion bushels, up 8 percent from 2008, and corn would total 12.761 billion bushels, up 5 percent from 2008 and the second-largest on record.
Bumper crops and lower grain prices will help constrain food prices, said a USDA forecaster. Prices are forecast to rise by a modest 3 percent this year and 3.5 percent in 2010, compared to a 5.5 percent increase -- largest since 1990 -- in 2008, when grain and oil prices set record highs.
Thursday, August 13, 2009
Trader's Highlight
DJI-NEW YORK, Aug 12 (Reuters) - U.S. stocks powered higher on Wednesday as the Federal Reserve said it saw signs of a more stable economy.
The Federal Reserve said the economy was leveling out, and it left interest rates unchanged at the end of its two-day policy meeting.
The Fed also said it will extend the duration but not the size of a program to buy long-term government debt, which is part of its effort to revive credit and stimulate the economy.
The Dow Jones industrial average <.DJI> gained 120.16 points, or 1.30 percent, to close at 9,361.61. The Standard & Poor's 500 Index <.SPX> rose 11.46 points, or 1.15 percent, to 1,005.81. The Nasdaq Composite Index <.IXIC> added 28.99 points, or 1.47 percent, to 1,998.72.
The S&P is up 48.7 percent from its more than 12-year closing low set on March 9.
NYMEX-NEW YORK, Aug 12 (Reuters) - U.S. crude oil futures ended higher for the first time in four sessions on Wednesday, although Wall Street pared gains after the Federal Reserve kept the benchmark interest rates unchanged and extended Treasury
debt purchases.
On the New York Mercantile Exchange, September crude settled up 71 cents, or 1.02 percent, at $70.16 a barrel, trading from $68.84 to $71.13.
The EIA said that domestic crude stocks rose 2.5 million barrels last week to 352 million barrels, above the forecast for a 700,000 barrel rise in a Reuters poll.
CBOT-SOYBEANS - August down 1/2 cent to $12.16. a bushel. New-crop November up 5-1/2 at $10.44.
Fund buying in deferred months lifted market and thinly traded August weak amid posting of 10 deliveries overnight Tuesday. Market weighed down in early dealings as traders locked in profits after big rally on Tuesday despite USDA crop data that forecast smaller-than-expected soy production and acreage numbers.
USDA pegs 2009 U.S. soybean production 3.199 billion bushels, down from average estimate for 3.225 billion. Soy acreage 77.7 million, up from July estimate by USDA for 77.5 million.
CBOT-SOYOIL - August up 0.45 cent per lb at 38.47. Market support from gains in crude oil.
FCPO-JAKARTA, Aug 12 (Reuters) - Malaysian palm oil futures edged lower on Wednesday as investors locked in gains from a three-day rally in absence of fresh leads, traders said.
The benchmark October contract on Bursa Malaysia's Derivatives Exchange was down 5 ringgit, or 0.2 percent at 2,460 ringgit ($697.28) a tonne. The contract hit the day's high of 2,490 ringgit and a low of 2,410 ringgit. Overall volume was 17,914 lots of 25 tonnes each, bigger than the usual 10,000 lots.
REGIONAL EQUITIES-JAKARTA, Aug 12 (Reuters) - Southeast Asian markets ended mostly lower on Wednesday, led by Jakarta, as investors locked in gains from a recent rally and on caution ahead of assessments from the Federal Reserves on prospects for the U.S. economy.
Singapore <.FTSI> slipped 1 percent, weighed down by a 2.32 percent fall in DBS Group and a 1.55 percent loss in Singapore Telecommunications .
In Kuala Lumpur, the index <.KLSE> eased 0.48 percent. Among the losers, are KNM Group, which dropped 5.36 percent and Maybank with a 3.25 percent fall.
The Federal Reserve said the economy was leveling out, and it left interest rates unchanged at the end of its two-day policy meeting.
The Fed also said it will extend the duration but not the size of a program to buy long-term government debt, which is part of its effort to revive credit and stimulate the economy.
The Dow Jones industrial average <.DJI> gained 120.16 points, or 1.30 percent, to close at 9,361.61. The Standard & Poor's 500 Index <.SPX> rose 11.46 points, or 1.15 percent, to 1,005.81. The Nasdaq Composite Index <.IXIC> added 28.99 points, or 1.47 percent, to 1,998.72.
The S&P is up 48.7 percent from its more than 12-year closing low set on March 9.
NYMEX-NEW YORK, Aug 12 (Reuters) - U.S. crude oil futures ended higher for the first time in four sessions on Wednesday, although Wall Street pared gains after the Federal Reserve kept the benchmark interest rates unchanged and extended Treasury
debt purchases.
On the New York Mercantile Exchange, September crude
The EIA said that domestic crude stocks rose 2.5 million barrels last week to 352 million barrels, above the forecast for a 700,000 barrel rise in a Reuters poll.
CBOT-SOYBEANS - August
Fund buying in deferred months lifted market and thinly traded August weak amid posting of 10 deliveries overnight Tuesday. Market weighed down in early dealings as traders locked in profits after big rally on Tuesday despite USDA crop data that forecast smaller-than-expected soy production and acreage numbers.
USDA pegs 2009 U.S. soybean production 3.199 billion bushels, down from average estimate for 3.225 billion. Soy acreage 77.7 million, up from July estimate by USDA for 77.5 million.
CBOT-SOYOIL - August
FCPO-JAKARTA, Aug 12 (Reuters) - Malaysian palm oil futures edged lower on Wednesday as investors locked in gains from a three-day rally in absence of fresh leads, traders said.
The benchmark October contract
REGIONAL EQUITIES-JAKARTA, Aug 12 (Reuters) - Southeast Asian markets ended mostly lower on Wednesday, led by Jakarta, as investors locked in gains from a recent rally and on caution ahead of assessments from the Federal Reserves on prospects for the U.S. economy.
Singapore <.FTSI> slipped 1 percent, weighed down by a 2.32 percent fall in DBS Group
In Kuala Lumpur, the index <.KLSE> eased 0.48 percent. Among the losers, are KNM Group
FKLI Daily: in Consolidation phase
Market tested the immediate support level at 1175.5 but manage to defend. Hence, market may enter into consolidation phase in near term with uside resistance maintain at 1189.5 followed by 1200. While, downside support is pegged at 1170 followed by 1158.5.
FCPO Daily: Maintain in positive posture
Market still maintain its positive posture despite a negative closing. Thus, we continue to look for the upside resistance at 2500-2530. To the downside, support is remains at 2380 followed by 2354-2345 (gap left over on 10/8/2009).
Ttrader's Comment: Profit taking activities were evident after the recent strong rebound.
Profit taking activities were evident after the recent strong rebound. Benchmark Oct09 initially opened RM25 higher at 2490 but immediately attracted players to book their profit after the previous 2-day rally. Prices fell lower through out most of the sessions and tested intra day low of 2410 few times. Short-covering activities emerged in late trading led Benchmark Oct09 to bounce back strongly and ended RM5 lower at 2460. External markets were rather mix as eCBOT soy oil edged lower while Dalian palm ended higher today. Asian time crude oil clawed back its earlier losses and inched higher in late trading.
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