Wheat, Soy May Rise as Demand Gains; Corn Seen Lower

Dec. 6 (Bloomberg) -- What follows are opening calls for U.S. grain and oilseed markets.

-- Wheat futures may open 8 cents to 10 cents a bushel higher on the Chicago Board of Trade, the Kansas City Board of Trade and the Minneapolis Grain Exchange after rain damaged crops in Australia, boosting demand for U.S. exports, said Jim Gerlach, the president of A/C Trading Inc. in Fowler, Indiana.

-- Soybean futures may open steady to 1 cent a bushel higher on the CBOT as falling inventories of palm oil and adverse weather in South America reduce prospects for global supplies, Gerlach said. Soybean-meal futures may open $1 to $1.50 lower per 2,000 pounds, and soybean oil is expected to open up 0.3 cent to 0.4 cent a pound.

-- Corn futures are called to open 3 cents to 5 cents a bushel lower in Chicago on concern that demand for grain-based ethanol will decline, Gerlach said.

-- U.S. exporters sold 20,000 metric tons of soybean oil, 160,000 tons of hard-red winter wheat and 116,000 tons of corn to unknown buyers, the U.S. Department of Agriculture said. Exporters also sold 171,000 tons of soybeans to China. {NXTW NSN LD0F4C6S972V <GO>}

-- The most-accurate foreign-exchange strategists say the euro’s worst annual performance since 2005 will extend into next year as the region’s sovereign-debt crisis saps economic growth. {NXTW NSN LCZPLG1A74E9 <GO>}

-- Treasuries rose and the dollar snapped a three-session decline after Federal Reserve Chairman Ben S. Bernanke said the central bank may boost purchases of U.S. securities. The euro weakened amid divisions over steps to halt the debt crisis and U.S. stocks fell. {NXTW NSN LD0GV21A1I4H <GO>}

-- Bernanke said the economy is barely expanding at a sustainable pace and that it’s possible the Fed may increase bond purchases beyond the $600 billion announced last month to spur growth. {NXTW NSN LD01OA0D9L35 <GO>}

-- President Barack Obama called Chinese counterpart Hu Jintao to urge his help in communicating to North Korea that its uranium-enrichment program and recent artillery attack on a South Korean island are “unacceptable.” {NXTW NSN LD00DM6K50XS <GO>}

-- Brazilian soybean crops will benefit from rains in the country’s Southern states this month after dry weather in November, Somar Metereologia said. {NXTW NSN LD0EXD07SXKX <GO>}

-- France’s winter soft-wheat plantings are expected to rise 1.5 percent to the highest in three years, the agriculture ministry’s statistics office said. {NXTW NSN LD0EZ06JTSEI <GO>}

-- Russian feed-barley prices jumped 4.6 percent to 7,975 rubles ($255) a metric ton last week, leading gains among grains in the domestic market, as shortages in drought-damaged regions worsened, Moscow-based researcher SovEcon said. {NXTW NSN LD007C6JTSEF <GO>}

-- Milling-wheat exports from Australia may drop to the lowest in three years because of drought in the west and rain damage in eastern states. {NXTW NSN LCZX7W6TTDS2 <GO>}

-- Flooding and heavy rainfall in Australia damaged wheat crops, disrupted coal production and caused communities to be evacuated as eastern states prepared for more wet weather this week. {NXTW NSN LCZR7D6TTDS2 <GO>}

-- Ukrainian winter grains sprouted on almost all planted areas as of Dec. 2, the Agriculture Ministry said. {NXTW NSN LD0B8D1A1I4L <GO>}

-- China’s Ministry of Agriculture said it hasn’t held talks with Argentina on importing corn, Yicai.com reported, citing a press statement from the ministry. {NXTW NSN LCZMMJ6K50XT <GO>}

-- The southwestern Chinese city of Kunming, where Wal-Mart Stores Inc. and Carrefour SA have stores, imposed temporary price ceilings on daily necessities to counter inflation. {NXTW NSN LCWYOS1A1I4H <GO>}

-- The average price of major Chinese vegetables fell 10 percent in the week ended Dec. 1 from a week earlier, the National Development and Reform Commission said. {NXTW NSN LD02BG6JIJV5 <GO>}

-- Yunnan Yuntianhua Co. halted production of fertilizers on Oct. 30 because of a broken natural-gas pipeline in Sichuan province. {NXTW NSN LCW5TQ6TTDS5 <GO>}

-- Palm-oil futures in China climbed to the highest in 29 months on concern that a seasonal drop in production and smaller soybean harvests in South America may strain cooking-oil supplies. {NXTW NSN LD070K0YHQ0X <GO>}

-- Oilseed-meal exports from India surged 42 percent last month after farmers boosted sales to benefit from a rally in prices, a processor group said. {NXTW NSN LCZYNP6TTDS6 <GO>}

To contact the reporters on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net; Whitney McFerron in Chicago at wmcferron1@bloomberg.net.

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