More and more talk now about the energy subsistence crisis, but hardly a peep about the one in food?
Palmer drought map:
weather.tradingcharts.com
Argentina, Brazil:
weather.tradingcharts.com
Reuters
Still no rain on Argentina's soy-growing plains
Tuesday March 23, 2:33 pm ET
BUENOS AIRES, Argentina, March 23 (Reuters) - Argentina's soy belt should receive hardly any rain in the coming days as output forecasts fall in the world's third biggest producer, the state-run National Meteorological Service said on Tuesday.
"The situation (of the crops) is irregular in all the producing region because rainfall has also been irregular. The state of crops depends on whether there is rainfall or dry spells," weather specialist Liliana Nunez told Reuters.
Nunez added that there was no rainfall forecast for the provinces of Santa Fe and Cordoba -- the biggest and second-biggest provincial producers, which have not seen any rain in the last 10 days.
Cordoba, the province hit hardest by the dry spell, received some rain at the start of March, but not enough to help crops.
"In the north of Cordoba we had some rain 12 days ago that allowed soy (late seedings) to improve, but in the case of the first (seedings) the conditions are unstable," said soy producer Alberto Costamagna.
The critical state of crops has led the government to estimate a crop of 34.7 million tonnes, under the 34.8 million tonnes of last year and the 36.5 million tonnes predicted by the U.S. Department of Agriculture.
Despite the problems, Nunez said crop output "could reach 36 million tonnes."
In the south of Buenos Aires province and La Pampa, there could be rains on Thursday and Friday.
Nunez warned that reserves of water were very low in Cordoba and south of Buenos Aires and even less north of Buenos Aires and Santa Fe.
Reuters
Warm weather to deplete US Plains soil moisture
Tuesday March 23, 9:10 am ET
CHICAGO, March 23 (Reuters) - Warm and dry weather over the next several weeks will further deplete soil moisture reserves in the drier areas of the U.S. Great Plains hard red winter wheat growing region, a private forecaster said on Tuesday.
"The warmer temperatures with little rainfall will continue to deplete soil moisture," said Meteorlogix meteorologist Joel Burgio.
Crop weather improved in early March amid significant rainfall in the driest areas of western Kansas, eastern Colorado and western Nebraska. But more rain is needed to ensure a healthy start for the crop which is well into its rapid growth stage of development.
But there isn't much rain in sight.
Burgio said the Plains remained dry on Monday and temperatures were well above normal, with the readings peaking at 79 degrees Fahrenheit in Denver, Colorado. "There will be some light showers in the north and east today and Wednesday but nothing important," he said.
Temperatures will remain above normal through the week, with a few scattered showers in the north and east on Saturday.
The Kansas Agricultural Statistics Service late on Monday said that for the week ended March 21, topsoil moisture was 5 percent very short, 18 percent short, 71 percent adequate and 6 percent surplus. Subsoil moisture was 17 percent very short, 28 percent short, 51 percent adequate and 4 percent surplus.
The state's wheat crop improved a little last week, with the crop now rated at 11 percent very poor, 17 percent poor, 30 percent fair, 36 percent good and 6 percent excellent.
Kansas is the largest producer of hard red winter wheat in the United States.
Meteorlogix's six- to 10-day forecast for the Plains from Sunday through Thursday is for above-normal temperatures. Rainfall will be normal to below-normal.
Reuters
CSCE sugar surges to 7-1/2 month high on funds
Tuesday March 23, 12:55 pm ET
NEW YORK, March 23 (Reuters) - CSCE raw sugar futures ended
Tuesday at a 7-1/2 month high on relentless speculative fund
buying, with the sweetener seen edging higher in the days
ahead, brokers said.
CSCE May sugar (SBK4) jumped 0.14 cent, or by 2.04 percent,
to conclude at 7.01 cents a lb, moving from 6.91 to 7.04
cents. It was the highest close for sugar since trading above
7.25 cents in early August 2003. July (SBN4) gained the same to
6.93 cents. The rest increased 0.09 to 0.12 cent.
"It looks very good," said James Cordier of Liberty Trading
Group. "We hit our target (of 7.00 cents, basis May) so we'll
see what happens next."
Sugar popped higher from the opening bell as fund buying
ate through scale-up trade selling to finally breach the
psychological target of 7.00 cents, floor sources said.
"I don't think we're done. The funds keep buying the sugar
and the trade keeps selling it," one said.
Fundamentally, the market looks friendlier due to expected
lower output in key producers India and Thailand. Top grower
Brazil, which is expecting another record cane crop in 2004/05,
may get its production trimmed due to drought.
Analysts said, however, that they are concerned that the
funds, who are net long in the last Commitment of Traders'
report by nearly 40,000 lots, may be primed for a setback.
"If this thing stalls, we could see it drop from some of
the weak longs liquidating their positions," one explained,
adding the total hefty open interest in the No. 11 sugar
contract of 294,335 lots is also worrisome because the rally
may be overdone.
Technicians said resistance in May was at 7.10 cents,
followed by the region around 7.25/32 cents. Support was at
6.85 and then 6.75 cents.
Estimated volume just before the market closed for the day
hit 46,592 lots, against the previous tally of 40,413 lots.
Call volume stood at 13,516 lots while puts hit 4,723 lots.
U.S. domestic sugar futures ended higher Tuesday.
May sugar (SEK4) added 0.04 to 20.93 cents a lb while July
(SEN4) rose 0.03 to 20.95 cents. Except for one contract, the
rest went up 0.01-0.04 cent. Estimated volume prior to the
market's close touched 442 lots, from 882 lots previously.
The CSCE is a subsidiary of the New York Board of Trade. |
