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Gus Trompiz

GRAINS-Soybeans slips back towards six-week lows on lack of China buys

24 Jan 2020

* Soybean market waiting for Chinese sales after trade deal * Corn, wheat consolidate after demand-fuelled rally * Grain markets await weekly U.S. export data (Updates with European trading, changes byline/dateline) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, Jan 24 Chicago soybean futures fell on Friday to hold near a six-week low, as a lack of Chinese purchases since last week's trade deal between Washington and Beijing cooled demand sentiment. Corn ticked down after climbing to a three-month high on Thursday, while wheat also eased after rallying to an 1-1/2 year high earlier this week. Both cereal markets have been buoyed by brisk overseas demand, although traders were awaiting weekly U.S. export data at 1330 GMT for a fresh indication. The most-active Chicago Board of Trade soybean contract was down 0.3% at $9.06-1/2 a bushel by 1045 GMT. In the previous session, it had touched its lowest since Dec. 13 at $9.04 a bushel, but held above the key $9 threshold. The U.S. Department of Agriculture (USDA) has not confirmed agricultural sales to China since the countries signed last week an first-stage trade agreement in which Beijing pledged to increase imports of American farm products. Soybeans are the biggest U.S. crop export to China and the oilseed market has been sensitive to developments in a trade dispute between Washington and Beijing since 2018. "Soybeans are still waiting for confirmation of purchases from China, while Brazilian harvest pressure will soon be felt," consultancy Agritel said of the soybean market. Traders see the Brazilian harvest, which is underway and expected to be record large, providing stiff competition for sales to China, particularly after Beijing turned extensively to Brazil for supplies during its tariff stand-off with Washington. Traders have also been waiting to see if China buys U.S. corn and wheat under the trade agreement, and the USDA's announcement on Thursday that private exporters sold 141,000 tonnes of U.S. corn to unknown destinations fuelled more speculation about potential Chinese demand. Corn and wheat prices, however, have already been boosted by signs of healthy demand elsewhere. CBOT wheat was down 0.6% at $5.77-1/4 a bushel, while corn was off 0.4% at $3.92. The recent rally in wheat, as well as firm corn prices in Brazil, have boosted demand prospects for U.S. corn. "Perhaps now with wheat prices more firmly established at higher levels, the relative feed costs can support higher corn prices," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. The International Grains Council on Thursday raised its forecast for global corn production in the 2019-20 season, driven mainly by upward revisions for China and the United States. The market's focus for corn and soybean production is on South America. Recent rains in Argentina have helped corn and soybean development during summer heat, the Buenos Aires grains exchange said on Thursday. (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore, Editing by Sherry Jacob-Phillips, Shailesh Kuber and Shinjini Ganguli)

Louis Dreyfus owner pledged stake to raise $1 billion Credit Suisse loan

06 Jan 2020

PARIS Margarita Louis-Dreyfus borrowed $1 billion from Credit Suisse last year to buy out minority shareholders of Louis Dreyfus Company (LDC), pledging her majority stake in the commodities trader as collateral, a company filing showed.

U.S. grain futures set for yearly rise on U.S.-China demand hopes

31 Dec 2019

PARIS/SHANGHAI Chicago wheat, corn and soybean futures were set to post annual gains after an outline U.S.-Chinese trade deal that could boost crop exports helped prices rally towards the end of the year.

GRAINS-U.S. grain futures set for yearly rise on U.S.-China demand hopes

31 Dec 2019

(Updates with European trading, changes byline/dateline) By Gus Trompiz and Emily Chow PARIS/SHANGHAI, Dec 31 Chicago wheat, corn and soybean futures were set to post annual gains after an outline U.S.-Chinese trade deal that could boost crop exports helped prices rally towards the end of the year. The crop futures were little changed on Tuesday as markets wound down during the last session of 2019 and awaited further details on the agreement between Washington and Beijing that may be signed in the week ahead. The most active soybean futures contract on the Chicago Board of Trade had ticked down a quarter of a cent on the day by 1317 GMT to $9.52-1/4 a bushel, just off Monday's 18-month high of $9.53. That put the benchmark up 6.4% over the year, in line for its first annual gain in three years. The most active CBOT wheat contract inched up 0.3% to $5.57-3/4 a bushel, near Monday's 16-month peak of $5.64-1/2. Wheat was on course for a 10.8% increase over 2019 and a third straight annual rise. CBOT corn was unchanged on the day at $3.88-1/4, leaving it up 3.5% on the year so far. "Consolidation is the word today, particularly on oilseed markets that have been strong," Arthur Portier of consultancy Agritel said. "Now we're going have to see what the U.S.-Chinese deal means in reality and if we see shipments flowing between the two countries." China, the world's largest consumer of soybeans, and the United States struck a "Phase 1" trade deal earlier in December that includes a commitment by Beijing to increase purchases of American agricultural products. The agreement helped revive soybean prices which had fallen to a 10-year low in May due to demand worries caused by the trade dispute between Washington and Beijing. Optimism surrounding the planned accord increased on Monday after the South China Morning Post reported Chinese Vice Premier Liu He will visit Washington this week to sign a Phase 1 trade deal, while the White House trade advisor said the agreement would be signed "within the next week or so". Oilseed markets, like soybeans, have also drawn support from a rally in palm oil to three-year highs, linked to expectations of lower production and a rise in biofuel demand. Malaysian palm oil futures closed slightly lower on Tuesday to show a 44% gain for the year. The planned U.S.-China deal has added to healthy demand prospects for wheat, which along with global harvest concerns have supported higher global cash prices. Export prices for Russian wheat rose for a seventh straight week. Corn, meanwhile, has been buffeted this year by uncertainty over the U.S. harvest. Chicago futures climbed to a five-year high after massive rain delays to U.S. planting, before losing some ground due to tepid demand and ample global supplies. Prices at 1317 GMT Last Change Pct End Ytd Pct Move 2018 Move CBOT wheat 557.75 1.75 0.31 503.25 10.83 CBOT corn 388.25 0.00 0.00 375.00 3.53 CBOT soy 952.25 -0.25 -0.03 895.00 6.40 Paris wheat Mar 188.50 -0.50 -0.26 194.50 -3.08 Paris maize Jan 168.50 0.00 0.00 175.00 -3.71 Paris rape Feb 411.75 -1.00 -0.24 366.00 12.50 WTI crude oil 61.20 -0.48 -0.78 45.41 34.77 Euro/dlr 1.12 0.00 0.29 1.1469 -2.08 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Gus Trompiz in Paris and Emily Chow in Shanghai; Editing by Shailesh Kuber/David Evans)

GRAINS-U.S. wheat, soybeans hold firm around 1-year highs on China demand hopes

30 Dec 2019

(Updates with European trading, changes byline/dateline) By Gus Trompiz and Emily Chow PARIS/SHANGHAI, Dec 30 Chicago wheat and soybean prices rose on Monday to stay near their highest levels in over a year as traders anticipated China will expand purchases of U.S. crops under a planned trade deal with Washington. Firm physical markets for wheat around the world, supported by steady export demand, a rally in palm oil prices and dry weather in South America also lent support to Chicago futures. However, volumes were light in year-end holiday trade and traders were cautious about the strength of the price rally. The most active soybeans futures on the Chicago Board Of Trade were up 0.7% at $9.48-1/2 a bushel by 1235 GMT, close to Friday's peak of $9.50-1/2 that marked an 18-month high. CBOT wheat futures were up 1.2% at $5.62-3/4 a bushel, after earlier setting a new high since August 2018 at $5.63-1/4. Corn was unchanged on the day at $3.90 a bushel, consolidating below a near two-month top of $3.91 struck on Friday. "Grain markets remain steady to higher as traders hold out hope of a China trade deal which will boost U.S. grain exports," U.S. brokerage Allendale said in a note. China, the world's largest consumer of soybeans, and the United States struck a "phase one" trade deal this month to defuse a dispute that has disrupted massive U.S. soybean exports. The agreement includes a commitment by Beijing to increase purchases of U.S. agricultural products, although a formal text has yet to be signed. The initial agreement has also raised expectations of Chinese imports of U.S. corn and wheat, which could add to brisk international demand for wheat. Iran has in recent weeks bought around 1 million tonnes of wheat, mainly Russian, according to traders, while Chinese purchases of European Union wheat this season are also expected to reach about 1 million tonnes. Export prices in Russia, the world's biggest wheat supplier, rose for a seventh straight week last week. Grain markets were also being supported by recent dry weather in Brazil, the world's biggest soybean exporter. "After a week of widespread dryness, mixed weather (is) expected for Brazil first-crop corn and soybean areas through Jan. 8," Refinitiv Agriculture Research analysts said, noting above-average rainfall expected in the Center West, Southeast and Northeast, and below-average rainfall in Mato Grosso do Sul and the South. A near three-year high for Malaysian palm oil futures also lent support to wider oilseed markets including soybeans. Prices at 1235 GMT Last Change Pct End Ytd Pct Move 2018 Move CBOT wheat 562.75 6.50 1.17 503.25 11.82 CBOT corn 390.00 0.00 0.00 375.00 4.00 CBOT soy 948.50 7.00 0.74 895.00 5.98 Paris wheat Mar 189.50 0.50 0.26 194.50 -2.57 Paris maize Jan 168.00 2.50 1.51 175.00 -4.00 Paris rape Feb 413.50 0.75 0.18 366.00 12.98 WTI crude oil 62.10 0.38 0.62 45.41 36.75 Euro/dlr 1.12 0.00 0.12 1.1469 -2.45 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Gus Trompiz in Paris and Emily Chow in Shanghai; Editing by Subhranshu Sahu and Jason Neely)

GRAINS-Soybeans steady near 18-month high on China hopes, wheat also firm

27 Dec 2019

* Market sees more soy purchases in planned U.S.-China trade deal

Commodity trader Louis Dreyfus changes finance chief in latest reshuffle

18 Dec 2019

PARIS Agricultural commodity giant Louis Dreyfus Company (LDC) named a new head of finance on Wednesday, the latest management change in the midst of a cost-cutting drive at the 168-year-old privately held firm.

UPDATE 1-FranceAgriMer raises wheat export forecast for third month in a row

11 Dec 2019

PARIS, Dec 11 Farm office FranceAgriMer on Wednesday increased its forecast of French soft wheat exports outside the European Union this season for the third month in a row, in another sign of favourable overseas demand for the EU's biggest wheat exporter.

UPDATE 2-France to ban dozens of glyphosate weedkillers amid health risk debate

09 Dec 2019

* Regulator says lacks evidence to exclude potential health risks

GRAINS-Soybeans at 2-week high as China tariff waivers add to trade hopes

09 Dec 2019

* Soybeans up for 5th session on hopes of U.S.-China deal * China to exempt some U.S. soybeans, pork from tariffs * Wheat eases, corn little changed ahead of USDA data (Updates with European trading, changes byline/dateline) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, Dec 9 Chicago soybean futures rose for a fifth straight session on Monday to their highest in almost two weeks, after China's announcement last week about tariff waivers for U.S. soybean and pork encouraged hopes of a trade agreement. The rally in soybean prices remained capped by underlying caution regarding the protracted U.S.-Chinese trade negotiations, as well as expectations for a record soybean harvest in Brazil in the coming months. Chicago corn and wheat eased. Grain markets were awaiting further clues about supply from weekly U.S. Department of Agriculture (USDA) crop progress data later on Monday, followed by the USDA's monthly world crop forecasts on Tuesday. The most-active soybean contract on the Chicago Board Of Trade was up 0.3% at $8.92 a bushel at 1238 GMT. It earlier climbed to its highest since Nov. 26 at $8.94-1/4 a bushel as it extended a recovery from last Monday's near three-month low of $8.67-1/2. "The market is being helped by China granting further tariff waivers on imports of U.S. soybeans," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. "The better tone on U.S.-China trade sentiment also helped – but only so much." The tariff waivers on U.S. soybeans and pork were based on applications by individual companies, China's finance ministry said in a statement on Friday without specifying quantities. The tariff waivers are "good mood music," White House economic adviser Larry Kudlow said, although he said a Dec. 15 deadline for Washington to introduce further tariffs on Chinese goods remained in place. China's November soybean imports jumped from a year ago as shipments from the United States booked during a truce in the Sino-U.S. trade war cleared customs, customs data showed. In Canada, an official estimate on Friday pegging Canada's canola crop at a four-year low after wet harvest weather also lent support to oilseed markets. CBOT wheat was down 0.6% at $5.21-1/2 a bushel, while corn was 0.3% lower at $3.75-3/4 a bushel. The USDA's weekly crop progress report on Monday will give an update on a late-running U.S. corn harvest as well as conditions for young winter wheat plants. The agency's monthly world crop outlook on Tuesday will notably be watched for updates on southern hemisphere wheat production, including in drought-hit Australia. Commodity brokerage INTL FCStone on Monday projected this year's Australian wheat crop at 14.97 million tonnes, below last week's official estimate of 15.85 million. Prices at 1238 GMT Last Change Pct End Ytd Pct Move 2018 Move CBOT wheat 521.50 -3.00 -0.57 503.25 3.63 CBOT corn 375.75 -1.00 -0.27 375.00 0.20 CBOT soy 892.00 2.50 0.28 895.00 -0.34 Paris wheat Dec 185.75 0.00 0.00 191.25 -2.88 Paris maize Jan 164.75 0.00 0.00 175.00 -5.86 Paris rape Feb 397.75 0.75 0.19 366.00 8.67 WTI crude oil 58.60 -0.60 -1.01 45.41 29.05 Euro/dlr 1.11 0.00 0.14 1.1469 -3.46 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 Uttaresh.V and Mark Potter)

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