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5 years ago
GRAINS-Soybeans recover to close higher after Fed decision
September 13, 2012 / 6:51 PM / 5 years ago

GRAINS-Soybeans recover to close higher after Fed decision

* Soy turns higher after falling on profit-taking
    * Federal Reserve decision boosts markets
    * Wheat traders eyes Egyptian purchases
    * Corn recovers following slide on Wednesday

 (Recasts, adds closing prices)
    By Tom Polansek
    CHICAGO, Sept 13 (Reuters) - U.S. soybean futures edged
higher on Thursday, shaking off early losses tied to
profit-taking, after the Federal Reserve announced an aggressive
new economic stimulus program. 
    Soybeans added to Wednesday's gains, when the market notched
its biggest one-day rally in almost two weeks after the U.S.
Department of Agriculture issued a tighter-than-expected supply
outlook.
    At Thursday's close soybeans were down almost 3 percent form
the record high set last week.
    The Fed's move also supported corn and wheat futures, which
traded higher throughout the day. Corn futures were recovering
from a two-month low set on Wednesday after USDA reported a
larger-than-expected harvest forecast.
    U.S. stocks added to gains on the Fed's move, while the
dollar fell broadly, oil prices rose and gold hit a six-month
high.
    "I certainly think the Fed decision and the rising stock
market helped the grains out," said Brian Hoops, president of
Midwest Market Solutions.
    Chicago Board of Trade new-crop November soy closed up
0.1 percent to $17.47-1/4 a bushel. December wheat rose
1.4 percent to $9.02 a bushel, and December corn was 0.6
percent higher at $7.73-3/4 a bushel.
    
    DIGESTING USDA DATA
    The closely watched USDA crop report on Wednesday gave an
updated view on how the worst drought in the United States in
more than half a century hurt Midwest crops.
    USDA estimated this year's U.S. soybean harvest at 2.634
billion bushels, down from last month's estimate of 2.692
billion and below analysts' average estimate of 2.657 billion. 
    Ending soybean stocks next summer were forecast to be the
lowest in nine years at 115 million bushels, unchanged from the
August estimate. 
    The U.S. corn harvest was forecast at 10.727 billion
bushels, down slightly from last month's estimate of 10.779
billion but above analysts' average estimate of 10.38 billion.  
   It would be the smallest corn crop in six years, and the
lowest yield in 17 years at 122.8 bushels per acre.
    Hoops predicted corn and soybean futures would extend gains
on Friday due to supply fears.

    EGYPT BUYS MORE WHEAT
    Egypt, the world's top importer of the grain, bought 235,000
tonnes of Russian, French and Ukrainian wheat for Nov. 21-30
shipment. Egypt initially said it had bought 120,000 tonnes, but
later revised to the deal to 235,000. 
    It was the seventh tender in about a month by Egypt, which
has been snapping up supplies as a drought reduces the Russian
harvest and dry weather trims the crop in Australia. 
    "The Egyptian purchase underlined the export shift to France
as Russian supplies are selling out," a German trader said.
 
    Russian Deputy Prime Minister Arkady Dvorkovich on Thursday
accused speculators of spreading false rumors that the country
would ban grain exports this year. He repeated a promise that
Moscow would not impose export restrictions. 
    Russia roiled global grain markets in 2010 when it suspended
wheat exports due to a savage drought.
    Syria's state-run General Establishment for Cereal
Processing and Trade also entered the market, buying 50,000
tonnes of Russian or Ukrainian wheat in a tender. An official
said Syria will soon issue a tender for 100,000 tonnes of wheat.
 
    
 Prices at 3:16 p.m. CDT (2016 GMT)      
                              LAST      NET    PCT     YTD
                                        CHG    CHG     CHG
 CBOT corn                  776.75     5.75   0.8%   20.1%
 CBOT soy                  1743.50     2.75   0.2%   45.5%
 CBOT meal                  533.50    -1.90  -0.4%   72.4%
 CBOT soyoil                 56.46     0.55   1.0%    8.4%
 CBOT wheat                 879.00    12.00   1.4%   34.7%
 CBOT rice                 1487.00    15.00   1.0%    1.8%
 EU wheat                   264.50     3.75   1.4%   30.6%
 
 US crude                    98.03     1.02   1.1%   -0.8%
 Dow Jones                  13,540      207   1.6%   10.8%
 Gold                      1765.46    34.30   2.0%   12.9%
 Euro/dollar                1.2987   0.0086   0.7%    0.3%
 Dollar Index              79.2650  -0.4720  -0.6%   -1.1%
 Baltic Freight                663        2   0.3%  -61.9%
 
 (Additional reporting by Naveen Thukral in Singapore and
Sybille de La Hamaide in Paris; Editing by Jim Marshall, Maureen
Bavdek and Bob Burgdorfer)

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