RTRS- US farmers to trim corn plantings next year - Farm Futures

CHICAGO, Aug 28 (Reuters) - U.S. farmers plan to cut their corn plantings in 2013 to 93.06 million acres and boost their soybean seedings, according to a survey by Farm Futures Magazine.

The survey of around 1,800 farmers pegged next year's soybean plantings at 78.05 million acres.

"Ironically, this shift from corn to soybeans mirrors a similar shift taking place in South America as well, casting doubts on the world’s ability to rebuild tight global feed grain stocks without a significant shift in global weather patterns to boost yields in 2013,” Farm Futures market analyst Arlan Suderman said in a statement.

U.S. wheat acreage was forecast at 57.05 million, largely due to expectations for increased seedings of soft red winter wheat in the eastern Midwest and South.

"These results tell us that growers would like to get their rotations back in balance after pushing corn in recent years," said Bryce Knorr, senior editor at Farm Futures.

Expenses for next year's crop do not look like they will increase much, Knorr added.

U.S. farmers planted 96.4 million acres of corn in 2012, according to the U.S. Agriculture Department. Expectations of a huge crop followed an early planting, which allowed growers to seed the biggest corn acreage since 1937, but a drought ravaged the crop throughout the summer and cut back harvest expectations.

USDA reported soybean plantings at 76.1 million acres and wheat plantings at 56 million acres this year.

RTRS- China faces soybean import squeeze -Oil World

HAMBURG, Aug 28 (Reuters) - China will have to cut its giant soybean imports in coming months because of tighter supplies after drought reduced crops in the United States and South America, Hamburg-based oilseeds analysts Oil World said on Tuesday.

“For Sept. 2012/Feb. 2013 we estimate that Chinese soybean imports will have to be reduced by 4 to 5 million tonnes from the 27.5 million tonnes imported in the same six months of a year earlier,” Oil World said.

U.S. corn and soybean prices hit record highs this summer as scorching temperatures and a relentless drought ravaged crops in the United States, while drought also caused large drops in Argentine and Brazilian soybean harvests. GRA/

China accounted for 61 percent of global soybean imports in the first half of 2012, Oil World said.

The Chinese government is likely to increase sales of state soybean reserves to compensate for lower imports, Oil World said.

“In addition, China is likely to raise imports of Canadian canola (rapeseed) above its year-ago level in the next six months,” it said.

It added: “The prospective steep decline in soybean imports will result in a massive reduction of total Chinese soybean stocks below last year’s level as of end-February 2013, enforcing considerably higher imports in the second half of the 2012/13 season.”

This means the big South American crops looming in early 2013 will face major pent-up demand from China, it said.

Oil World forecasts Brazil’s soybean crop in early 2013 will rise to 82.0 million tonnes from 66.40 million tonnes in early 2012.

Argentina’s 2013 crop is likely to rise to 56.0 million tonnes from 40.50 million tonnes, it said.

RTRS- Surge in soybean prices not yet over -Oil World

HAMBURG, Aug 28 (Reuters) - Global soybean prices have still not exhausted their upward potential following new highs because supply shortages mean demand will be squeezed in coming months, Hamburg-based oilseeds analysts Oil World said on Tuesday.

U.S. soybeans hit new contract highs this week after key tour of experts in the Pro Farmer team concluded the drought damage to the U.S. soybean crop is worse than U.S. government forecasts. GRA/

“They (soybeans) have further upward potential in the near to medium term on bullish fundamentals,” Oil World said. “Futures prices are vulnerable to temporary setbacks on profit-taking. But these setbacks are likely to be limited, particularly as long as demand has not been sufficiently rationed.”

U.S. soybean and corn futures hit record highs this summer as scorching temperatures and drought ravaged crops in the U.S., while drought also cut soybean harvests in giant exporters Brazil and Argentina.

“The global supply tightness of soybeans is unprecedented and will result in a decline in world exports by approximately 8-9 million tonnes in Sept. 2012/Feb. 2013 as well as in unusually small world stocks of soybeans in early 2013,” Oil World said.

“However, relief will come from a bumper South American soybean crop which under favourable weather conditions could be boosted to 152 million tonnes in early 2013 from the drought-reduced 116 million tonnes in early 2012.”

But in the meantime, supplies are shrinking.

Soybean stocks in Brazil, usually the second largest exporter after the United States, are forecast by Oil World to fall to 15.59 million tonnes on Sept. 1 from 26.15 million tonnes on Sept. 1, 2011.

Sept. 1 soybean stocks in the second largest exporter Argentina will fall to 18.50 million tonnes from 26.10 million tonnes this time last year, it estimates.

Demand will have to adjust in the time before the new South American harvests arrive in early 2013, Oil World said.

Trader's Highlight

DJI- NEW YORK, Aug 28 (Reuters) - U.S. stocks ended little changed in another day of scarce activity on Tuesday after mixed economic data gave investors little reason to shift their focus from Federal Reserve Chairman Ben Bernanke's speech on Friday.

The Fed chief is scheduled to address a conference of central bankers in Jackson Hole, Wyoming, and could announce new measures to boost growth. While Bernanke is expected to keep alive expectations for a third round of major bond buying by the Fed, or quantitative easing, he could keep markets guessing about the actual timing.

Volume was among the lightest of the year after Monday's lightest trading in 2012. August is a slow season, and investors mostly stayed on the sidelines, anticipating Bernanke's speech.

"I don't think you can read a lot from what's going on in the market right now," said John Fox, co-manager of the FAM Value Fund, in Cobleskill, New York. "Because there's nothing going on, everyone is waiting for the speech on Friday."

The latest sign of slowing in the global economy added to expectations for more central bank stimulus. Japan cut its assessment of economic growth, citing a deceleration in U.S. and Chinese demand for Japanese exports.

U.S. consumer confidence unexpectedly weakened in August to its lowest in nine months as Americans turned more pessimistic about the short-term outlook, according to the Conference Board.

But in another report, the S&P/Case Shiller composite index of 20 metropolitan areas showed U.S. home prices rose for a fifth consecutive month, a sign of slow improvement in the housing sector. (Full Story)

Among the day's biggest gainers, Lexmark International Inc LXK.N jumped 13.7 percent to $21.62 after it said it would stop making inkjet printers, cut about 1,700 jobs, and focus on its more profitable imaging and software businesses.

The NYSEArca computer hardware index .HWI rose 1.2 percent. Shares of Hewlett Packard HPQ.N, which has a substantial portion of inkjet sales, were down 1.8 percent at $16.90.

The Dow Jones industrial average .DJI was down 21.68 points, or 0.17 percent, at 13,102.99. The Standard & Poor's 500 Index .SPX slipped 1.14 points, or 0.08 percent, at 1,409.30. The Nasdaq Composite Index .IXIC edged down 3.95 points, or 0.13 percent, at 3,077.14.

NYMEX- NEW YORK, Aug 28 (Reuters) - U.S. crude futures rose on Tuesday as Hurricane Isaac approached the U.S. Gulf Coast, forcing companies in the region to close down oil production platforms and refineries.

 

CBOT SOYBEAN- Aug 28 (Reuters) - Soybean futures on the Chicago Board of Trade ended higher on Tuesday, erasing early losses on news of fresh sales of U.S. soybeans to China and expectations of continued export demand, traders said.

• Soybean futures turned lower at times on long liquidation and profit-taking after Monday's contract highs.

• CBOT soymeal futures followed soybeans higher on concerns about U.S. and global supplies of the high-protein animal feed, while soyoil fell for a second day.

• USDA confirmed sales of 110,000 tonnes of U.S. soybeans to China for delivery in 2012/13. (Full Story)

• Global soybean prices have still not exhausted their upward potential following new highs because supply shortages mean demand will be squeezed in coming months - analysts Oil World. (Full Story)

• China will have to cut its giant soybean imports in coming months because of tighter supplies after drought reduced crops in the United States and South America - Oil World. (Full Story)

• Torrential rain and flooding from Hurricane Isaac will bring relief to a large chunk of drought-stricken cropland but will stall early harvest of corn, soybeans and rice - meteorologist. (Full Story) (Full Story)

• A Farm Futures Magazine survey indicated U.S. farmers would plant less corn and more soybeans in 2013. The survey projected 2013 soybean plantings at 78.05 million acres, up from 76.1 million in 2012. (Full Story)

• USDA late Monday said 8 percent of the U.S. soybean crop was dropping leaves, a sign of maturity, ahead of the five-year average of 4 percent.

 

FCPO- KUALA LUMPUR, Aug 28 (Reuters) - Malaysian crude palm oil futures slid on Tuesday as investors took profit after the market hit a six-week high the previous session, with traders watching for a big stocks build-up to weigh on prices.

Palm oil, which has lost more than 4 percent this year, is moving in tandem with the U.S. soy complex, where investors have unwound bullspreads after the market recently hit a record as the worst drought in 56 years ravaged crops.

A smaller supply of soybeans to be crushed into edible oil and strong palm oil production in coming months has widened palm's discount to soyoil to more than $250 per tonne.

But palm oil stocks in Malaysia, the world's second-largest producer, are set to rise to more than 2.3 million tonnes, traders said, as production outpaces export growth in the second half of the year.

"I sold off this morning. Palm oil is surviving on borrowed strength of soyoil markets," said a trader with a foreign commodities brokerage.

The benchmark November 2012 contract FCPOc3 on the Bursa Malaysia Derivatives Exchange dropped 2.1 percent to 3,029 ringgit ($970). The previous day, the contract hit 3,122 ringgit, a level last seen on July 17.

Total traded volume stood at 22,029 lots of 25 tonnes each, slightly lower than the usual 25,000 lots.

REGIONAL EQUITY- BANGKOK, Aug 28 (Reuters) - Most Southeast Asian stock markets fell slightly in a lacklustre session on Tuesday as investors trimmed positions in risky assets amid worries about global growth, with Vietnam coming off the day's low as beaten-down bank stocks rebounded after recent sell offs.

The Ho Chi Minh Stock Exchange's VN Index .VNI eased 0.11 percent, falling 1.7 percent at one point, as concerns over banking risks appeared subdued. Military Bank MBB.HM, which was among the actively traded, gained 1.5 percent after a 10.2 percent drop since last Monday.

Vietnamese shares lost a net 12.24 percent over the past six sessions following the arrests of Asia Commercial Bank's ACB.HN top executives that have kept retail investors bearish.

The Philippines .PSI edged up 0.63 percent, reopening after a market holiday. Indonesia .JKSE was down 0.07 percent. Jakarta resumed trading after being halted by technical problems on Monday.