Reuters logo
GRAINS-Dryness in Argentina, U.S. Plains boosts prices
January 29, 2013 / 4:07 PM / 5 years ago

GRAINS-Dryness in Argentina, U.S. Plains boosts prices

* Dry weather in Argentina underpins corn, soy
    * Chinese demand in focus as soy supply tightens
    * USDA reports further decline in U.S. wheat crop ratings

 (Updates weather forecast, prices)
    By Tom Polansek
    CHICAGO, Jan 29 (Reuters) - U.S. corn and soybean futures
inched higher on Tuesday as dry weather threatened to reduce
production in major exporter Argentina, while wheat rose on
deteriorating crop conditions in the U.S. Plains.
    Traders are zeroing in on unfavourable weather because large
global harvests are needed to replenish tight supplies.  
    Soybeans trimmed gains because updated weather maps looked
wetter than they had earlier in the day, said Steve Georgy,
broker manager for Allendale. Still, uncertainty about the
forecast and a lack of other news were fueling "sloppy, choppy
trade", he said.
    "The weather down in South America is really what's pushing
it back and forth," Georgy said.
    At the Chicago Board of Trade, March soybeans were up
0.1 percent at $14.49-1/4 a bushel by 12:15 p.m. CST (1815 GMT).
    March corn inched up 0.2 percent to $7.30-3/4 a
bushel, and March wheat gained 0.4 percent at $7.82 a
bushel.
    Updated weather forecasts called for a small cluster of
rainstorms over the heart of Argentina's corn-growing area on
Monday next week, said Andy Karst, meteorologist for World
Weather Inc. The models are "probably overdone", he said,
playing down the potential benefit to crops. 
    Widespread rain during the weekend in Argentina is expected
to relieve stress temporarily on corn and soybeans. 
    "It's not enough to fix their situation by any means," Karst
said.
    Excessive rains in some parts of northern Brazil are a
concern, according to Commonwealth Bank of Australia.
    "We're in a weather market right now, with reason," said
Jack Scoville, vice president of Price Futures Group. "There are
certainly plenty of issues going on in South America and the
western Plains are still dry too."

    WHEAT WOES
    Drought in the U.S. Plains continues to fuel worries for
wheat traders.
    In Kansas, the top winter wheat production state in the
country, the crop was rated 20 percent good to excellent as of
Jan. 27, down 4 percentage points from the end of December,
according to National Agricultural Statistics Service data
issued on Monday. 
    Dealers also were watching conditions in the Black Sea
region, a key source of wheat exports.
    Winter weather is favourable for the Ukrainian grain crop,
which could see its yield rise by 20 to 30 percent in 2013, a
senior Ukrainian weather forecaster said. 
    Autumn drought and severe frosts in almost all Ukrainian
regions damaged about 2 million hectares (4.9 million acres) of
winter grains sown for last year's harvest, reducing the wheat
crop to 15.76 million tonnes from 22.3 million tonnes in 2010.
    
    SOY DEMAND
    Demand for soybeans is expected to stay strong, with China,
the world's top buyer of the oilseed, forecast to import more
than 15 million tonnes in the second quarter, according to
traders. That would be up 36 percent from its estimated
purchases in the January to March period. 
    Soybean harvest delays or transport problems in South
America may shift business back to the United States in the next
one to three months, pushing up U.S. soybean futures,
Hamburg-based oilseed analysts Oil World said.
    Brazil is forecast to overtake the United States as the No.1
exporter and producer of soybeans this season, with a 30 percent
increase in its soybean crop. However, the country has added no
new capacity to its ports, and port congestion could delay
shipments. 

 (Additional reporting by Sam Nelson in Chicago, Nigel Hunt in
London and Naveen Thukral in Singapore; Editing by Dale Hudson,
William Hardy and Sofina Mirza-Reid)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below