Tom's Feed
Oct 30, 2014

Bunge CEO forecasts strong soy U.S. crush margins into 2015

CHICAGO, Oct 30 (Reuters) – Oilseed processors will profit
from strong U.S. soybean crushing margins through the beginning
of next year, as demand from domestic livestock producers and
importers remains strong, the chief executive officer of Bunge
Ltd said on Thursday.

U.S. margins will be “well above historical averages and
probably the best we’ve seen in many years” for another six
months, despite the arrival of a massive U.S. soybean crop at
processors, CEO Soren Schroder said on an earnings call.

Oct 30, 2014

Slow farmer sales to stretch until next year -Bunge CEO

CHICAGO, Oct 30 (Reuters) – The slow pace of crop sales by
farmers that has hurt two of the world’s biggest grain traders
will likely stretch into next year, the head of Bunge Ltd
said on Thursday.

The forecast for sluggish sales from Chief Executive Officer
Soren Schroder may mean that Bunge and agribusiness rivals,
including Archer Daniels Midland Co and Cargill
Inc, will continue to feel economic pressure from
limited supplies despite massive grain harvests in the United
States.

Oct 30, 2014

Bunge Q3 earnings miss estimates as farmer selling slows

CHICAGO, Oct 30 (Reuters) – Bunge Ltd, one of the
world’s largest agricultural trading houses, on Thursday
defended its risk strategies as it reported lower-than-expected
third-quarter earnings and revenue because of hedging losses and
limited farmer selling.

The New-York based company suffered as farmers in North and
South America, dissatisfied with falling commodity prices, held
on to their crops rather than sell them to processors.

Oct 24, 2014

Soybeans retreat after topping $10 a bushel

CHICAGO, Oct 24 (Reuters) – U.S. soybean futures retreated
on Friday after piercing $10 a bushel for the first time in six
weeks as forecasts for favorable weather in the United States
and Brazil pressured prices.
Corn dipped after reaching a two-month high, while wheat
edged up after setting a seven-week high.
Soybeans pulled back on expectations that dry weather will
allow U.S. farmers to advance harvests through next week after
rain delays, and that showers will benefit dry areas of Brazil.
Brazil is the world’s top soybean exporter and the United States
is No. 2.
Scattered rains fell over Brazil’s center-west and southeast
agricultural areas on Friday, and heavier storms were due to
follow next week, meteorologists said.
Since the beginning of the month, the soy market has climbed
nearly 8 percent on concerns about unfavorable crop weather,
tight old-crop U.S. supplies, and strong demand from China, the
world’s top soy importer.
“I can’t argue with most of this rally,” said Rich Nelson,
chief strategist at brokerage Allendale. Rains in Brazil will
“definitely take some of the bite out of the market next week,”
he added.
Chicago Board of Trade front-month November soybeans
were down 0.9 percent at $9.84-1/4 a bushel at 10:10 a.m. CDT
(1510 GMT) after climbing as high as $10.02, the highest price
for a nearby contract since Sept. 12.
December corn lost 1 percent to $3.56 a bushel after
climbing as high as $3.65, the highest price for a front-month
contract since Aug. 22.
December wheat was up 0.3 percent at $5.27-1/4 after
hitting a six-week high of $5.39-1/4 a bushel in earlier trade,
the highest price since Sept. 3.
Soy prices could resume their rally next week as U.S.
farmers are delaying sales of newly harvested crops due to low
prices, analysts said.
Traders’ focus “has shifted from new-crop supply to
restocking depleted old-crop U.S. soybean and meal pipelines,”
said Rich Feltes, vice president of research at RJ O’Brien.
“We’re in midst of rally in bear market fed in part by
farmer refusal to restock pipeline,” he noted.
The wheat market was supported by concerns about dry weather
hurting Russian output, traders said.

Prices at 10:09 a.m. CDT (1509 GMT)

LAST NET PCT YTD
CHG CHG CHG
CBOT corn 356.00 -3.75 -1.0% -15.6%
CBOT soy 984.75 -8.50 -0.9% -25.0%
CBOT meal 348.90 -3.50 -1.0% -20.3%
CBOT soyoil 32.35 -0.32 -1.0% -16.7%
CBOT wheat 528.25 1.50 0.3% -12.7%

Oct 21, 2014

Corn, wheat top one-month highs

CHICAGO, Oct 21 (Reuters) – U.S. corn and wheat futures
climbed on Tuesday to their highest levels in more than a month,
as technical and speculative buying pushed up prices in the face
of advancing U.S. harvests.

Soy futures also traded higher, led by gains in soymeal.

The rallies will likely be short-lived as farmers are
bringing in record-large U.S. corn and soy crops from their
fields, traders said.

Oct 21, 2014

Cargill loses bid to stop ex-manager from working for rival

Oct 21 (Reuters) – A federal judge has denied Cargill Inc’s
attempt to block a former executive of its
meat-packing unit from working for rival JBS SA to
prevent the potential loss of trade secrets.

U.S. Judge Raymond Moore in Denver ruled on Monday that
although Jason Kuan “did once have specific knowledge of
Cargill’s trade secrets, his knowledge now is generalized.”

Oct 20, 2014

Syngenta lawsuit against Bunge over GMO corn revived on appeal

CHICAGO (Reuters) – A federal appeals court has opened the door for Syngenta Seeds to revive a lawsuit it brought against Bunge North America in 2011 over the agribusiness company’s refusal of a type of genetically modified corn.

An opinion in the case came on Monday as Syngenta and its parent company, Swiss-based Syngenta AG, have become the target of lawsuits over the same variety of corn, Agrisure Viptera.

Oct 20, 2014

Markets hit 1-week lows on improved U.S. harvest weather

CHICAGO, Oct 20 (Reuters) – U.S. corn and soybean futures
fell to one-week lows on Monday as drier weather in the U.S.
Midwest was set to allow harvesting to accelerate after rain
delays.
Forecasts for mostly dry conditions across the Corn Belt
drove down prices after markets rallied in recent weeks on
concerns about wet weather slowing the harvest of record-large
U.S. crops.
“Corn harvest should get underway in a big way this week,”
said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage
in Iowa, the top corn and soy producing state.
Weather conditions look “excellent” over the next week to 10
days, he added.
At the Chicago Board of Trade, December corn fell 1.5
percent to $3.42-3/4 a bushel by 10:30 a.m. CDT (1530 GMT) after
trading to a one-week low of $3.42. November soybeans
dropped 1.3 percent to $9.39-1/4 a bushel after touching a
one-week low of $9.36.
The U.S. Department of Agriculture, in a weekly report on
Monday, will issue an update on harvest progress for corn and
soybeans. The soybean harvest may be 50 percent to 55 percent
complete, Pfitzenmaier said.
A week ago, the soybean harvest was 40 percent complete,
compared with an average of 53 percent for that date, while the
corn harvest was 24 percent complete, compared with the average
of 43 percent.
“With today’s harvest equipment, once the fields are fit
farmers can catch up in a hurry,” Pfitzenmaier said.
Futures International estimated the soybean harvest at 56
percent complete and the corn harvest at 27 percent complete.
Wheat prices also were lower, with the CBOT December
contract down 0.8 percent at $5.11-3/4 a bushel.
The market came under pressure from concerns that abundant
supplies of lower-priced corn will hurt demand for wheat from
the feed sector, traders said. Both grains can be used for
animal feed.
Gains in wheat will be limited by “continued global feed
substitution back to corn,” Morgan Stanley said, adding that
there were adequate supplies in Europe and the former Soviet
Union.

Prices at 10:27 a.m. CDT (1526 GMT)

LAST NET PCT YTD
CHG CHG CHG
CBOT corn 343.00 -5.00 -1.4% -18.7%
CBOT soy 939.50 -12.25 -1.3% -28.4%
CBOT meal 328.10 -2.40 -0.7% -25.0%
CBOT soyoil 31.62 -0.40 -1.3% -18.5%
CBOT wheat 512.00 -4.00 -0.8% -15.4%
CBOT rice 1253.50 -1.00 -0.1% -19.2%
EU wheat 159.50 -0.50 -0.3% -23.7%

Oct 16, 2014

Ex-Cargill manager fights attempt to keep him from rival

CHICAGO, Oct 16 (Reuters) – Valuable trade secrets that
Cargill Inc claims were stolen by a longtime manager
in its meatpacking division who quit for rival JBS SA
are nothing more than basic butchery, lawyers for the employee
said in court documents.

Privately held Cargill, one of the top U.S. meat producers,
is asking a federal judge in Denver to forbid Jason Kuan from
working for a competitor for one year to prevent damages
stemming from the loss of confidential information.

Oct 14, 2014

CME to cut 5 percent of global workforce to reduce costs

CHICAGO (Reuters) – CME Group Inc (CME.O: Quote, Profile, Research, Stock Buzz) plans to cut 5 percent of its global workforce, or about 150 jobs, to reduce costs with most cuts hitting its technology operations, the world’s largest futures exchange operator said on Tuesday.

CME’s Chicago headquarters will suffer the majority of the layoffs, although they will affect global offices, a spokeswoman said. Corporate and administrative jobs will be among those eliminated.