U.S. Commodities: Soybeans Soar on Less-Than-Expected Plantings
2002-06-28 13:01 (New York)
U.S. Commodities: Soybeans Soar on Less-Than-Expected Plantings
Chicago, June 28 (Bloomberg) -- Soybeans surged more than 4
percent, their biggest gain in a year, after a government report
showed U.S. farmers planted fewer acres of the oilseed than
analysts expected.
The lower-than-expected acreage estimate from the U.S.
Department of Agriculture spurred concern about reduced supplies
from the world's biggest bean exporter. Prices have gained 20
percent this year amid rising demand for soybeans to make animal
feed and vegetable oil.
``New crop production is likely to be below last year and old
crop supplies are already tight,'' said Anne Frick, an analyst at
Prudential Securities Inc. in New York. The acreage figure ``was
surprisingly low and that's quite bullish'' for bean prices.
In other markets, crude oil fell 2 percent on expectations
that the Organization of Petroleum Exporting Countries will
increase production to satisfy any strengthening in demand later
this year, and copper prices had their biggest gain in a month.
The energy-weighted Goldman Sachs Commodity Index gained 0.09 to
202.50.
Soybeans for delivery in November, after the harvest, rose as
much as 20.5 cents, or 4.2 percent, to $5.12 a bushel on the
Chicago Board of Trade, the biggest one-day gain since June 29,
2001. Soybean prices were up 8.7 percent this week as a heat wave
threatened to damage Midwest crops.
Farmers planted soybeans on 72.993 million acres this season,
the Agriculture Department said today, less than the 74.091
million analysts expected. The report was released before trading
opened.
In a March survey, farmers told the Agriculture Department
they intended to sow beans on 72.966 million acres, a 1.5 percent
decrease from 2001, and plant more corn, which has been delivering
higher yields and bigger profits than soy in recent years.
Excessive rain that caused flooding in April and May forced
farmers in Illinois, Indiana, Ohio and Missouri to postpone corn
planting, which is usually finished by mid-May. Growers had been
expected to switch some fields to soybeans once the ground dried
because beans can be sown later than corn without suffering yield
losses.
Crude Oil
Crude oil fell 2 percent on expectations that the
Organization of Petroleum Exporting Countries will increase
production to satisfy any strengthening in demand later this year.
Oil prices have risen by one-third this year, boosted partly
by OPEC production cuts. The departing secretary-general of the
producer group, Ali Rodriguez, yesterday said OPEC would ``without
any doubt'' increase supply if demand rises by 1 million barrels a
day in the fourth quarter.
``The statements regarding OPEC's willingness to increase
output later this year are pushing prices lower,'' said John
Kilduff, senior vice president of energy risk management at Fimat
USA Inc. in New York.
Crude oil for August delivery fell as much as 53 cents to
$26.33 a barrel on the New York Mercantile Exchange. Prices have
risen 2 percent this week and were up 0.8 percent for the quarter.
World oil consumption in the fourth quarter will rise by 1.6
million barrels a day, or 2 percent, from the third quarter to
77.9 million barrels a day, according to the International Energy
Agency, which forecasts energy trends for industrialized
countries.
OPEC members on Wednesday agreed to maintain production
quotas at the lowest level in 11 years. A committee composed of
ministers and officials from Iran, Kuwait and Nigeria reiterated
the need for full compliance with the limits.
Copper
Copper prices had their biggest gain in a month on strong
demand from U.S. builders and signs that consumers are more
confident about the economy than analysts expected.
Robust demand from builders, the biggest users of copper, has
contributed to a 19 percent rise in futures prices this year. New
homes sold at a record pace in May with U.S. mortgage rates at a
seven-month low. An index of consumer confidence published today
was higher than economists expected.
``The copper market is encouraged by good U.S. home sales and
the maintenance of low interest rates,'' said Tony Nappi, a copper
trader at Triland USA Inc. in New York. ``The consumer is really
holding up the economy.''
Copper for September delivery rose as much as 1.85 cents, or
2.4 percent, to 77.85 cents a pound on the Comex division of the
New York Mercantile Exchange, the biggest one-day gain since May
28. Prices have risen 3.8 percent this week and were up 2 percent
for the quarter.
U.S. new homes sales soared 8.1 percent in May to a record
annual rate of 1.03 million units following a 3.9 percent rise in
April, the Commerce Department said on Wednesday.
The reading of 92.4 in the University of Michigan's index of
consumer sentiment, while down from May, was higher than the 90.8
that economists had forecast.
--Joe Carroll in the Chicago newsroom (312) 692-3745, or at
jcarroll8@bloomberg.net, with reporting by Mark Shenk and Claudia
Carpenter in New York. Editor: Enoch. |
