Tom's Feed
Apr 16, 2014

China rejections of GMO U.S. corn cost up to $2.9 billion: group

CHICAGO (Reuters) – China’s rejections of a banned variety of genetically modified U.S. corn have cost the U.S. agriculture industry up to $2.9 billion, a grain group said on Wednesday in the first estimate on losses from the trade disruptions.

The National Grain and Feed Association (NGFA) estimated in a report that rejections of shipments containing Syngenta AG’s Agrisure Viptera corn resulted in losses of at least $1 billion, based on an economic analysis that included data supplied by top global grain exporters.

Apr 16, 2014

CME trading outage showed that man can still match the machine

NEW YORK/CHICAGO (Reuters) – Just over a week ago, CME Group Inc suffered the worst-ever trading outage on the world’s most important agricultural markets, plunging electronic screens into darkness and sending dozens of traders scrambling for Chicago’s famous but now often deserted trading “pits”.

It seemed like an impossible task: replace the seamless efficiency of an electronic trading screen with hand signals and guttural shouts to execute clients’ orders to trade corn, wheat or cattle during the “close”, often the busiest time of the day.

Apr 16, 2014

CME trading outage showed that man can still match the machine

NEW YORK/CHICAGO (Reuters) – Just over a week ago, CME Group Inc suffered the worst-ever trading outage on the world’s most important agricultural markets, plunging electronic screens into darkness and sending dozens of traders scrambling for Chicago’s famous but now often deserted trading “pits”.

It seemed like an impossible task: replace the seamless efficiency of an electronic trading screen with hand signals and guttural shouts to execute clients’ orders to trade corn, wheat or cattle during the “close”, often the busiest time of the day.

Apr 15, 2014

ADM to keep its cocoa presses but to sell chocolate business

NEW YORK/CHICAGO (Reuters) – Archer Daniels Midland Co (ADM.N: Quote, Profile, Research, Stock Buzz) on Tuesday said it will keep its cocoa presses but still wants to sell its chocolate business after long-running negotiations to sell the money-losing operations to a buyer collapsed.

Global agribusiness ADM said in a statement that extensive negotiations with a potential buyer did not reach an “outcome that met ADM’s objectives.” It did not name any suitors.

Apr 14, 2014

USDA considers mandatory reports of deadly pig virus outbreaks: industry group

CHICAGO (Reuters) – The United States is considering rules that would require outbreaks of a deadly pig virus to be reported to the government in an effort to improve tracking of the disease, which has already spread to 30 states, an industry group said on Monday.

Porcine Epidemic Diarrhea virus (PEDv) has killed millions of baby pigs since it was first detected in the United States a year ago. PEDv has crimped hog supplies in the United States and sent prices to record highs. It remains unclear how the virus entered the country, and farmers have struggled to find ways to contain it.

Apr 9, 2014

CME Group trading outage exposes weakened trading floor

CHICAGO, April 9 (Reuters) – Open-outcry traders sprang into
action during an electronic trading halt in CME Group Inc
agricultural markets on Tuesday, but a better solution
to the outage would have been to close the pits down too,
traders and investors said a day later.

In chaos following the outage on CME’s electronic Globex
platform, some orders sent to open-outcry grain pits went
unfilled because there were not enough traders to handle the
influx. And brokers said trades in the corn pit distorted the
market for a key contract, which settled at a price out of line
with where it traded before and after the outage.

Apr 8, 2014

CME trading outage sends business back to the pits

CHICAGO, April 8 (Reuters) – The world’s largest futures
markets operator had to shut electronic trade for leading
agricultural contracts on Tuesday, just a day before key U.S.
crop data, as rare technical problems hit and sent traders
scrambling to get back on the floor.

CME Group, which has just won a court case giving it
the right to use electronic trades as well as open outcry
business in calculating end-of-day prices, had to rely solely on
the centuries-old floor trading for these on Tuesday.

Apr 8, 2014

Cargill earnings drop, hurt by U.S. energy trading loss

CHICAGO (Reuters) – Cargill Inc CARG.UL, a top global commodities trader, said on Tuesday its quarterly earnings fell 28 percent due to a trading loss in U.S. power markets, China’s rejection of U.S. corn shipments, and rail disruptions.

Minneapolis-based Cargill reported net earnings of $319 million for the third quarter ended February 28, down from $445 million a year earlier. Revenue was $32 billion, nearly even with a year earlier.

Apr 7, 2014

Wheat bounces from 3-week low; crop ratings eyed

CHICAGO, April 7 (Reuters) – U.S. wheat futures edged higher
on Monday after touching a three-week low in the previous
session as traders worried that key growing areas of the U.S.
Plains will remain unfavorably dry.
Weekend rains in the U.S. Plains breadbasket were lighter
than expected, and there were doubts that an upcoming storm
system would bring significant relief to the crops.

Traders were waiting for the U.S. Department of Agriculture
to issue its first weekly crop-progress report of 2014, which is
expected to show a decline in U.S. winter wheat condition
ratings due to persistent dryness. The report is due at 3 p.m.
CDT (2000 GMT).
“We started into the winter in much better condition, and it
has deteriorated quite a bit,” said Art Liming, futures
specialist with Citigroup.
Chicago Board of Trade May wheat futures were up 3/4
cent, or 0.1 percent, at $6.70-1/2 a bushel by 10 a.m. CDT (1500
GMT). They had lost 3.7 percent last week, falling 0.9 percent
to a three-week low on Friday as rain forecasts eased crop
concerns.
Technical buying helped underpin the wheat market ahead of a
monthly USDA supply/demand report on Wednesday that is expected
to tighten the government’s outlooks for U.S. supplies of wheat,
corn and soybeans.
“Wednesday’s report certainly has the potential to surprise,
but pales in comparison to weather and production information,”
said Joseph Vaclavik, president of Standard Grain.
May soybeans were up 1-1/4 cents, or 0.1 percent, at
$14.75 a bushel. May corn dipped 3-1/2 cents, or 0.7
percent, to $4.98-1/4.
Corn had recently drawn some support from strong export
demand and fears that cold weather across the United States
could delay plantings. However, analysts said the concerns might
have been overblown because modern farm machinery allows growers
to catch up quickly on planting when conditions improve.
“Without widespread delays, it may be hard to get a market
reaction,” said Karl Setzer, grain solutions team leader for
MaxYield Cooperative.
Demand for U.S. soybeans remained strong, as private
exporters struck deals to sell 120,000 tonnes of the U.S. crop
to China for delivery in the 2014/15 marketing year, which will
start on Sept. 1. China is the world’s top soy importer.

Apr 4, 2014

Exclusive: Merck wants to test Zilmax on 240,000 cattle but beef industry resists

CHICAGO (Reuters) – Merck & Co Inc wants to feed its controversial feed additive Zilmax to 240,000 U.S. cattle to prove it is safe. But there is a problem: giant meat processors like Cargill Inc don’t want to touch animals fed with the drug.

Merck plans to conduct the biggest ever test of its kind in an effort to reintroduce the weight-adding drug into the United States and Canada after suspending sales last August. A test herd of this size is currently worth up to $500 million.