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Gus Trompiz

Chinese buying spree pressures EU grain market

Nov 27 2020

PARIS China's massive appetite for grain is rippling through Europe's markets, fuelling sharp price rallies as traders struggle to meet relentless export demand amid dwindling supplies.

GRAINS-Soybeans at four-year high as demand and weather keep market bubbling

Nov 20 2020

* Soybeans at highest since June 2016, up 12% this month * Strong Chinese demand and dry South American weather support * Corn hits highest since July 2019, wheat steady (Updates with European trading, changes byline/dateline) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, Nov 20 Chicago soybeans rose for a sixth consecutive session on Friday to a four-year high as robust Chinese demand and a dry start to the South American growing season fuelled expectations of dwindling U.S. supplies. Corn rose to another one-year peak, similarly buoyed by brisk exports and weather risks in other exporting countries. The most active soybean contract on the Chicago Board Of Trade (CBOT) was up 1% at $11.89-3/4 a bushel by 1053 GMT, having touched the latest in a series of multi-year highs at $11.92-3/4. The contract has gained more than 12% this month. "There is a scarcity concern in the market this year," said Rabobank commodity analyst Michael Magdovitz. "We're getting into the period when there is a higher moisture requirement for the Brazilian crop and when there is not so much U.S. crop left to be sold." While some rain has reached Brazilian and Argentine grain belts, more moisture was seen as needed to complete soybean and corn planting and boost crop development. Argentine soy planting advanced sharply over the past week after rains in key drought-hit areas, the Buenos Aires Grains Exchange said on Thursday, though much of the country remained dry. Recent dryness in Brazil has also raised doubts over how large a crop the world's biggest soybean exporter can harvest in the coming months. "There are increasing supply concerns and feed demand is really strong as China is rebuilding its pig herd," said Phin Ziebell, an agribusiness economist at National Australia Bank. Weekly U.S. Department of Agriculture (USDA) export data on Thursday showed soybean and corn export sales above trade expectations. CBOT corn was up 1.2% at $4.32-1/2 after earlier touching its highest since July 2019 at $4.33-1/4. Wheat added 0.4% to $6.01-1/4. The arrival of a bumper Australian crop and moisture for parched U.S. wheat crops have curbed wheat prices, though brisk demand was underpinning the market, analysts said. Prices at 1053 GMT Last Change Pct End Ytd Pct Move 2019 Move CBOT wheat 601.25 2.50 0.42 558.75 7.61 CBOT corn 432.50 5.25 1.23 387.75 11.54 CBOT soy 1189.25 11.75 1.00 955.50 24.46 Paris wheat Dec 210.75 0.25 0.12 188.75 11.66 Paris maize Jan 193.25 0.50 0.26 179.00 7.96 Paris rape Feb 416.00 1.50 0.36 391.75 6.19 WTI crude oil 42.01 0.27 0.65 61.06 -31.20 Euro/dlr 1.19 0.00 -0.16 1.1210 5.74 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore Editing by Sherry Jacob-Phillips and David Goodman )

Barley trade routes redrawn as China tariff hits Australian farmers

Nov 16 2020

SYDNEY/PARIS Out in Australia's grain fields, farmers have started harvesting one of their biggest ever barley crops, after drought-relieving rains convinced many to plant to the edges of their paddocks.

Louis Dreyfus to gain first outside investor via deal with Abu Dhabi's ADQ

Nov 11 2020

PARIS Louis Dreyfus Company (LDC) has agreed to sell a 45% stake to Abu Dhabi's ADQ, the companies said on Wednesday, the first outside investment in the family-owned commodity merchant's 169-year-old history.

GRAINS-Soy firm at 4-year top on Chinese demand, vaccine optimism

Nov 10 2020

* Soybeans touch highest since July 2016 * Robust Chinese demand, COVID-19 vaccine hopes support * Corn, wheat also firm ahead of USDA world grain report (Updates with European trading, changes byline/dateline) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, Nov 10 Chicago soybean futures edged up to a fresh four-year high on Tuesday, underpinned by strong Chinese demand and wider market enthusiasm over a potential COVID-19 vaccine. Corn and wheat ticked up, steadying after declining a day earlier, as grain markets waited for the U.S. Department of Agriculture's (USDA) monthly world crop report at 1700 GMT that is expected to trim U.S. and world supplies. Soybeans, already buoyed by brisk export demand and doubts over U.S. and South American harvest prospects, drew extra support from a surge in share and oil prices since Monday as financial markets hailed progress in trials of a coronavirus vaccine developed by Pfizer and BioNTech. "Early days, of course, but this breakthrough is truly a reason to become more optimistic," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. "Soybean prices clearly gained in the wake of COVID-19 vaccine hopes. Also helping was more evidence of a post-election pickup in U.S. soybean sales to China." The most-active soybean contract on the Chicago Board Of Trade was up 0.6% at $11.16-3/4 a bushel by 1302 GMT. It earlier reached $11.19, its highest since July 2016 and just above Monday's four-year peak of $11.18. The USDA on Monday reported that exporters had sold 123,000 tonnes of U.S. soybeans to unknown destinations, often seen by traders as denoting China. The soy market was also monitoring a strike by grain port workers in major exporter Argentina. CBOT wheat added 0.4% to $6.00 a bushel and corn was up 0.7% at $4.10-1/2 a bushel. The USDA's monthly supply and demand report is being watched to see if it raises projected Chinese corn imports in line with other forecasters. The wheat market was focusing on any USDA revisions to Australian supply, with the southern hemisphere exporter's big expected harvest already weighing on export markets. Prices at 1302 GMT Last Change Pct End Ytd Pct Move 2019 Move CBOT wheat 600.00 2.50 0.42 558.75 7.38 CBOT corn 410.50 3.00 0.74 387.75 5.87 CBOT soy 1116.75 6.25 0.56 955.50 16.88 Paris wheat Dec 210.00 0.75 0.36 188.75 11.26 Paris maize Jan 189.50 0.00 0.00 179.00 5.87 Paris rape Feb 401.00 -0.25 -0.06 391.75 2.36 WTI crude oil 40.68 0.39 0.97 61.06 -33.38 Euro/dlr 1.18 0.00 -0.03 1.1210 5.34 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore, Editing by Kirsten Donovan)

GRAINS-Soybeans set new 4-year top in spillover from rally on Pfizer vaccine

Nov 09 2020

* Pfizer update on coronavirus vaccine sends shares, oil soaring * Soybeans already supported by strong demand, S. America dryness * Chicago corn, wheat turn higher after earlier fall * Grain market awaits USDA supply/demand update on Tuesday (Recasts with soybean high, wheat/corn turning higher in broad markets rally) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, Nov 9 Chicago soybean futures extended gains on Monday to a new four-year high as a broad rally triggered by an update by Pfizer Inc on its COVID-19 vaccine trials added to further support to a soybean market already buoyed by strong Chinese demand and weather risks in South America. Corn and wheat turned higher after trading lower earlier in the day. U.S. drugmaker Pfizer said on Monday its experimental COVID-19 vaccine was more than 90% effective, news hailed by investors as hope in tackling a health crisis that has killed more than a million people and battered the global economy. Futures tracking the S&P 500 stocks index hit a record high following the announcement while crude oil added to earlier gains to trade up by over 8%. Moves in grain markets were relatively moderate as traders remained focused on Tuesday's world supply-and-demand outlook from the U.S. Department of Agriculture (USDA) for a gauge of resurgent Chinese demand and tightening supplies, amid weather concerns in several production zones. The most-active soybean contract on the Chicago Board Of Trade (CBOT) was up 1.2% at $11.14-1/2 a bushel by 1258 GMT. It earlier rose to $11.18, its highest since July 2016 and surpassing a previous four-year high of $11.12-3/4 struck last week. Prices at 1258 GMT Last Change Pct End Ytd Pct Move 2019 Move CBOT wheat 606.00 4.00 0.66 558.75 8.46 CBOT corn 407.75 1.00 0.25 387.75 5.16 CBOT soy 1114.50 13.00 1.18 955.50 16.64 Paris wheat Dec 210.00 1.25 0.60 188.75 11.26 Paris maize Jan 189.00 0.50 0.27 179.00 5.59 Paris rape Feb 400.50 2.50 0.63 391.75 2.23 WTI crude oil 40.37 3.23 8.70 61.06 -33.88 Euro/dlr 1.19 0.00 0.20 1.1210 6.12 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Barbara Lewis and David Evans)

GRAINS-Wheat firm near 6-year top as weather worries persist

Oct 23 2020

* Dry weather effects seen in Russian, U.S., Argentine wheat belts * Egypt wheat tender adds to flurry of international demand * Corn steady near 14-month top on strong export demand * Soybeans also consolidate after 4-year high; Brazil rain eyed (Updates with European trading, changes byline/dateline) By Gus Trompiz and Colin Packham PARIS/SYDNEY, Oct 23 Chicago wheat rose on Friday as traders worried about persisting effects of drought in major production belts worldwide and importers continued to grab available supply. Corn edged higher to hold near Thursday's 14-month high as strong export demand and doubts over harvest prospects in Ukraine and South America underpinned the market. Soybeans were little changed after rallying to a four-year peak in the previous session, as investors assessed improving rainfall in Brazil that could boost the planting campaign. The most active wheat futures on the Chicago Board of Trade were up 0.9% at $6.28-1/2 a bushel by 1046 GMT. The contract had fallen earlier to a one-week low as it eased from Tuesday's near six-year high, before turning upwards to trade back close to that peak. "The weather remains a really important factor for wheat," Nathan Cordier of consultancy Agritel said. "You've got a lot of rain in Australia, Argentina has suffered from dryness and frost, conditions aren't good in U.S. states like Kansas, while in Russia there is still a lot of uncertainty." The Buenos Aires Grains Exchange on Thursday cut again its forecast of the Argentine wheat harvest, citing the impact of drought despite the recent return of rain. Fellow southern hemisphere exporter Australia is set for a rebound in production this year, but rain in the southeast has raised concern about crop quality. In Russia, virtually no rain was expected in the week ahead in dry southern belts, although some forecasts projected showers in early November. Egypt is holding a tender on Friday, following purchases this week by Algeria, Tunisia and Turkey. CBOT soybeans inched up a quarter of a cent to $10.74 a bushel, after hitting on Thursday a more than four-year high of $10.85-1/4. CBOT corn was up 0.4% at 4.17-3/4 a bushel, near Thursday's peak of $4.19 that marked a highest since August 2019. U.S. Department of Agriculture weekly export data on Thursday confirmed strong demand for corn and soybeans, including large sales to China. Prices at 1046 GMT Last Change Pct End Ytd Pct Move 2019 Move CBOT wheat 628.50 5.75 0.92 558.75 12.48 CBOT corn 417.75 1.50 0.36 387.75 7.74 CBOT soy 1074.00 0.25 0.02 955.50 12.40 Paris wheat December 210.25 1.25 0.60 188.75 11.39 Paris maize Nov 194.50 3.25 1.70 174.75 11.30 Paris rape Nov 393.25 -1.50 -0.38 391.50 0.45 WTI crude oil 40.86 0.22 0.54 61.06 -33.08 Euro/dlr 1.18 0.00 0.22 1.1210 5.64 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Gus Trompiz in Paris and Colin Packham in Sydney; Editing by Amy Caren Daniel and Tomasz Janowski)

Louis Dreyfus gets profit boost in pandemic but equity shrinks

Sep 28 2020

PARIS Agricultural commodity merchant Louis Dreyfus Company (LDC) said its first-half profits rose as it adjusted to price volatility and shifts in food demand during the coronavirus pandemic.

GRAINS-Soybeans hover around $10 after pullback on harvest pressure

Sep 25 2020

* Soybeans down 4% this week in retreat from 2-year high * U.S. harvest curbs soy, corn prices while exports underpin (Updates with European trading, changes byline/dateline) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, Sept 25 Chicago soybean futures were little changed on Friday, consolidating around the $10 threshold after a sharp pullback this week fuelled by an advancing U.S. harvest. Corn was firm after also falling this week, with strong exports continuing to underpin the market. Wheat ticked lower. "The U.S. harvest is progressing well," said one Singapore-based trader at an international trading company. "I wouldn't say yields are fantastic, but they are pretty decent." The most-active soybean contract on the Chicago Board Of Trade was 0.1% lower at $9.98-3/4 a bushel at 1110 GMT, putting it on course for a 4.3% drop this week. Last Friday, the contract reached its highest since late May 2018. "The contract seems to be consolidating a bit, but it will have to be watched closely to see if it can hold the symbolic $10 level," a European trader said. A U.S. Department of Agriculture (USDA) report showed export sales of corn at 2.139 million tonnes and soybeans at 3.195 million tonnes, both topping the higher end of market expectations. However, the USDA did not report a fresh deal for soybeans to China in its daily reporting system, snapping a stretch of 14 straight trading days after a so-called flash sale has been announced. CBOT corn was up 0.5% at $3.65-1/4 a bushel and wheat was down 0.5% at $5.47. Wheat markets had rallied with support from purchases by importing countries and a surge in Russian export prices, but forecasts calling for rain in parched wheat belts in Ukraine and Argentina in the coming days helped curb the upward trend. Prices at 1110 GMT Last Change Pct End Ytd Pct Move 2019 Move CBOT wheat 547.00 -2.75 -0.50 558.75 -2.10 CBOT corn 365.25 1.75 0.48 387.75 -5.80 CBOT soy 998.75 -1.25 -0.12 955.50 4.53 Paris wheat December 192.50 0.25 0.13 188.75 1.99 Paris maize Nov 171.75 -0.25 -0.15 174.75 -1.72 Paris rape Nov 383.25 2.50 0.66 391.50 -2.11 WTI crude oil 39.94 -0.37 -0.92 61.06 -34.59 Euro/dlr 1.16 0.00 -0.32 1.1210 3.79 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Rashmi Aich and Mark Potter)

GRAINS-Prices slip to one-week lows on firm dollar, advancing U.S. harvest

Sep 24 2020

* U.S. corn, soybean harvest counters support from China demand * Two-month top for dollar also clouds U.S. export outlook * Traders assess coronavirus fallout, South America crops (Updates with European trading, changes byline/dateline) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, Sept 24 Chicago grain futures eased to one-week lows on Thursday as strength in the dollar and advancing U.S. corn and soybean harvests pushed prices away from recent highs fuelled by Chinese demand. "A stronger U.S. dollar is not helping, but we also suspect the market is fatigued after such a strong rally from mid-August," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. A flurry of export sales to China, together with concern over weather damage to U.S. corn and soybean crops, had fanned a rally in Chicago prices, with soybeans reaching a two-year high, corn a six-month peak and wheat a five-month top. But the start of U.S. corn and soybean harvesting, with favourable weather expected for field work in the coming days, encouraged prices to ease. The dollar, which hit a two-month high against a basket of currencies on Thursday, also weighed on U.S. grains, particularly U.S. wheat, which has struggled to compete overseas against Russian supplies. The dollar's strength was linked to worries about further economic fallout from a coronavirus epidemic that has accelerated again in Europe. "Soybeans are reflecting the concerns that demand could suffer again from the pandemic," a European trader said. The most-active soybean contract on the Chicago Board Of Trade (CBOT) was down 1.2% at $10.02 a bushel by 0958 GMT, as it approached the psychological $10 chart level. CBOT corn fell 1.49% to $3.63-1/4 a bushel and wheat was down 1.1% at $5.43-1/4 a bushel. All three crops struck one-week lows earlier in the session. However, strong demand from China helped limit declines. The U.S. Department of Agriculture (USDA) has reported soybean sales to China in each of the past 14 trading days. Traders are also turning their attention to South American harvest prospects. Argentina's upcoming soybean and corn crops will be smaller than last season's due to dry weather and capital controls, the Buenos Aires Grains Exchange said. Prices at 0958 GMT Last Change Pct End Ytd Pct Move 2019 Move CBOT wheat 543.25 -5.75 -1.05 558.75 -2.77 CBOT corn 363.25 -5.25 -1.42 387.75 -6.32 CBOT soy 1002.00 -12.50 -1.23 955.50 4.87 Paris wheat December 192.50 -1.50 -0.77 188.75 1.99 Paris maize Nov 171.75 -0.25 -0.15 174.75 -1.72 Paris rape Nov 383.75 -2.50 -0.65 391.50 -1.98 WTI crude oil 39.82 -0.11 -0.28 61.06 -34.79 Euro/dlr 1.16 0.00 -0.18 1.1210 3.82 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Gus Trompiz; Editing by Mark Potter)

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