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Grain, Soybeans May Surge as Russia Halts Exports

Aug. 5 (Bloomberg) -- What follows are opening calls for U.S. grain and oilseed markets.

-- Wheat futures may open up 60 cents a bushel, the maximum allowed, on the Chicago Board of Trade, the Kansas City Board of Trade and the Minneapolis Grain Exchange, after Russia grain exports until Dec. 31 to evaluate drought damage to crops, said Richard Feltes, the director of commodity research at MF Global Holdings Ltd. in Chicago.

-- Corn futures are called to open 20 cents to 25 cents a bushel higher on the CBOT on speculation that declining global wheat production will boost demand for grain supplies from the U.S., Feltes said.

-- Soybean futures may open 15 cents to 25 cents a bushel higher as China’s consumption climbs and hot, dry weather reduces production in Russia and other parts of Europe, Feltes said. Soybean-meal futures may open $5 to $7 higher per 2,000 pounds, and soybean oil is expected to open up 0.5 cent to 0.6 cent a pound, he said.

-- Russia will ban grain exports from Aug. 15 to Dec. 31 after the worst drought in half a century ravaged crops. {NXTW NSN L6OGU90D9L35 <GO>}

-- Russian companies may cancel shipments of about 600,000 metric tons of wheat to Egypt after the government announced an export ban, Valars Group said. {NXTW NSN L6OI3A6SETC1 <GO>}

-- Prime Minister Vladimir Putin ordered the government to distribute grain reserves to the regions without auctions to aid farmers. {NXTW NSN L6OG6E6SETC0 <GO>}

-- Wildfires in Russia have killed 50 people amid record heat and drought. {NXTW L6OG651A74E9 <GO>}

-- A wheat shipment of 45,000 tons to the Philippines from Russia or Ukraine was canceled, according to two grain traders. {NXTW NSN L6OBH10D9L35 <GO>}

-- Hundreds of trucks loaded with grain are lined up outside OAO Novorossiysk Commercial Sea Port, Russia’s main hub for outbound shipments, the regional government said. {NXTW NSN L6OBR10D9L35 <GO>}

-- Premier Foods Plc said higher wheat costs mean an “inevitable increase in pricing from us” for bread. {NXTW NSN L6OBG36NKN0U <GO>}

-- Soybean output in Brazil will rise less than forecast this year, the Agriculture Ministry said. Corn production will rise to 54.4 million tons, up from 53.5 million projected last month. {NXTW NSN L6OGEL1A1I4H <GO>}

-- Palm oil must jump by as much as 24 percent to cool export demand as output declines in Malaysia and weather damages canola crops in Europe and Canada, according to Godrej International Ltd. {NXTW NSN L6OD9M1A74E9 <GO>}

-- China’s imports of soybeans in July may be 5 million tons, higher than the projection of 4.8 million, a state-owned forecaster said. {NXTW NSN L6NRLY0YHQ0X <GO>}

-- U.S. exporters sold 566,000 tons of soybeans and 110,000 tons of wheat, the U.S. Department of Agriculture said. The soybean sale includes 455,000 tons to China for delivery in the year that begins Sept. 1. {NXTW NSN L6OK456VJ6RP <GO>}

-- Pakistan will increase imports of palm oil and rapeseed this year as demand climbs during the Ramadan, a refiner group said. {NXTW NSN L6NPDB0D9L35 <GO>}

-- Wheat futures on the Kansas City Board of Trade lack “convergence” with spot prices and need fixes similar to those made on the Chicago Board of Trade, Commodity Futures Trading Commission Chairman Gary Gensler said. {NXTW NSN L6OJMC1A74E9 <GO>}

-- China’s inflation rate probably rose to 3.4 percent last month as floods caused a “big rally’ in vegetable prices, according to Morgan Stanley. {NXTW NSN L6O78R6TZ01U <GO>}

To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net.

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.

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