DJ Argentina Soyoil Producers 'Worried' About China Import Threat

BUENOS AIRES (Dow Jones)--Possible moves by China to block Argentine soyoil imports are a "worry," Argentina's edible oil industry association, Ciara, said Wednesday.

In a statement, the chamber cited press reports Wednesday which suggested China was planning to raise quality standards on soyoil imports from April 1, which would effectively shut off imports from Argentina, currently the largest provider of that product to the Asian giant. "That would mean a pseudo-tariff pubishment just for soyoil from Argentina," the chamber said.

Crude soyoil is the second-most-plentiful product traded between the two countries, it said. The chamber said that, according to Chinese customs data, the Asian giant imported 1.83 million tons of soyoil, or 76% of its total soyoil imports, for a total of $1.41 billion, compared with 1.72 million tons worth $2.21 billion in 2008.

Argentina sells soyoil based on world quality standards and international commercial contracts, the chamber said, adding that in January 2005, China signed an agreement in which it stated that the norms wouldn't affect soyoil purchases.

Soyoil isn't consumed directly by humans and has to be refined before it is consumed, the chamber said, adding that Argentine processing units meet world standards.

Officials from Argentina's agricultural health service, known as Senasa, are traveling to China this  week, Ciara said.

-By Matthew Cowley, Dow Jones Newswires; +54 11 4103 6740;
matthew.cowley@dowjones.com 

DJ China Soybean Futures Settle Up; USDA Report In Focus

BEIJING (Dow Jones)--China's soybean futures traded on the Dalian Commodity Exchange settled higher Wednesday, with traders being cautious ahead of a possible favorable U.S. Department of Agriculture  report to be released tonight. The benchmark September 2010 soybean contract settled CNY19, or 0.5%, higher at CNY3,902 a metric ton.

The contract opened higher along with the gains on Chicago Board of  Trade overnight but failed to get more upward momentum despite market  rumors of China curbing soyoil imports through tighter quality  standard controls.

The market was abuzz with talk that the government  may require all imported soyoil to have a maximum solvent residue level of 100 parts per million, and that cargoes exceeding the level wouldn't be allowed to be unloaded at the ports. But as the market has digested the rumor yesterday, and no formal government document  was released, the focus remained on USDA's planting area report, Galaxy Futures said in its note.

Trading volume of all soybean contracts rose to 336,362 lots from 216,394 lots Tuesday. Open interest rose 6,318 lots to 342,256 lots Wednesday. Corn futures settled lower, while soyoil, soymeal and palm oil futures all  settled higher.

Following are Wednesday's settlement prices in yuan a ton for benchmark contracts and volume for all contracts in lots (one lot is equivalent to 10 tons):

Product  Contract  Settlement Price  Change     Volume 
Soybean  Sep 2010      3,902        Up   19    336,362 
Corn     Sep 2010      1,931      Down    4    106,824 
Soymeal  Sep 2010      2,851        Up    2    802,224 
Palm Oil Sep 2010      6,880        Up   12    368,058 
Soyoil   Sep 2010      7,604        Up   44  1,035,316 
 
 
  -Zheng Xiaolu contributed to this article; Dow Jones Newswires; 8610
8400-7715; tracy.zheng@dowjones.com 

DJ MARKET TALK: India Soybean Futures Steady; Outlook Weak

0751 GMT [Dow Jones] India April NCDEX soybean futures little changed at INR2,060/100 kgs; off intraday high of INR2,073 on news that Vietnam rejects 12,000 metric tons cargo of Indian soymeal citing low quality; soyoil down 0.5% at INR451.40/10 kgs. "It may further damp sentiment as export demand for soymeal is already low," says Indore-based trader; adds that high soybean stocks to also weigh in near-term. India February soymeal exports down 42.6% on year at 218,748 metric tons. Trader expects soybean in INR2,040-INR2,080 range, soyoil in INR448-INR454 band.

(ravi.bhushan@dowjones.com)

Contact us in Singapore. 65 64154 140;
MarketTalk@dowjones.com

DJ Brazil Soy Trade Timid On Prices, Upcoming USDA Report

SAO PAULO (Dow Jones)--Brazil's soy trade tapered off Tuesday as international soybean prices and the exchange rate failed to inspire selling.

"Buyers such as crushers or exporters struggled to buy beans as sellers refused to sell on Tuesday," said a chief trader at a major U.S. exporter.

The trader said slightly higher gains on the Chicago Board of Trade were canceled out by the exchange rate between the dollar and the Brazilian real on Tuesday.

Benchmark May soybean futures on CBOT ended 6.5 cents higher at $9.74 a bushel on Tuesday. Meanwhile, the dollar was at 1.79 Brazilian reals on Tuesday compared with BRL1.80 on Monday.

The trader said at Paranagua port, Brazil's main grain port, buyers were offering a premium of 15-16 cents over the CBOT May contract, while sellers wanted 20 cents. Only small volumes of physical soy were sold, he said.

Andre Pessoa, director of consultancy Agroconsult, said soy trade in Mato Grosso state, the top soy producer, has edged forward to 63% of the 2009-10 soy crop sold as of March. Sales in Parana, Brazil's No. 2 soy producing state, were at 19% sold as of March.

Most Brazilian farmers can still break even, but they are kicking themselves for not selling more earlier in the crop season, Pessoa said. Prices and the exchange rate were more favorable in previous months and could be pressured further by Brazil's big crop, which is seen at 68 million tons, he said.

For instance, in March the average profit margin in Parana was BRL500 per hectare, down from BRL650 per hectare in February, BRL688 per hectare in January and BRL732 in December, he said.

David Goncalves, a soy analyst at FC Stone in Campinas, said most eyes are on the U.S. Department of Agriculture's planting-intentions and quarterly grain stocks reports, scheduled to be released Wednesday.

Steve Cachia, an analyst at Cerealpar in Parana, said prices were around BRL38.30 and BRL38.40 per 60-kilogram bag on Tuesday at Paranagua.

Many sellers are speculating the USDA report might lead to a small increase in prices, he said.

Brazil is the world's No. 2 soy producer after the U.S.


- By Tony Danby, Dow Jones Newswires; 55-11-2847-4523;
Anthony.Danby@dowjones.com

DJ UPDATE: Brazil's Soy Crop Seen At 68 Mln Tons -Agroconsult

(Adds further details of key states and yields from press conference)


SAO PAULO (Dow Jones)--Brazil will harvest 68 million metric tons of soybeans from the 2009-10 crop, agronomists from consulting firm Agroconsult said Tuesday.

The number is based on a 12-state crop tour that Agroconsult finished this month.

The official estimates, made by the National Commodities Supply Corp., or Conab, this month put the crop at 67.5 million tons, up 18% from last year.

The crop is expected to be a record compared to the previous high mark in 2007-08, when Brazilian farmers harvested 60 million tons of soybeans.

Brazil's record 2009-10 soybean crop is up from the consultant's earlier estimate of 65 million tons in January, Andre Pessoa, director of consultancy Agroconsult, told reporters at a press conference in Sao Paulo.

Mato Grosso, Brazil's No. 1 soy-producing state, should produce 19.12 million tons of soy this season against 17.7 million tons last season, he said.

Parana state, the No. 2 soy producer, should produce a record 14.14 million tons this year compared to 9.4 million tons last year, when drought hampered the crop.

Rio Grande do Sul state, the third-largest producer, should also see 9.9 million tons this season versus 7.9 million tons from the last crop season, Pessoa said.

Brazil's yield for soybeans averaged at 48.8 60-kilogram bags per hectare for the 2009-10 crop compared to 43.6 kilograms per hectare last season, he said.

Brazil is currently harvesting soybeans and is the world's No. 2 producer behind the U.S.


-By Tony Danby, Dow Jones Newswires; 55-11-2847-4523;
anthony.danby@dowjones.com

DJ MARKET TALK: India Soyoil Futures End Up 0.5% On Firm Palm

1139 GMT [Dow Jones] India April NCDEX soyoil futures provisionally settle up 0.5% at INR454.30/10 kg, tracking 1% rise in BMD palm oil; soybean ends up 0.4% at INR2,061.50/100 kg. "But, high rapeseed arrivals will weigh on prices in near term," says Indore-based trader; India's rapeseed output for crop year through September likely at 6.32 million metric tons versus 6.20 million tons year earlier. Trader tips soybean in INR2,040-INR2,080 range, soyoil in INR451-INR458 band tomorrow.
 

(ravi.bhushan@dowjones.com)  
 
Contact us in Singapore. 65 64154 140; 
MarketTalk@dowjones.com 
 
 

DJ China Soybean Futures Settle Up, Following Gains On CBOT

BEIJING (Dow Jones)--Soybean futures traded on the Dalian Commodity Exchange settled higher Monday, following gains Friday on the Chicago Board of Trade.

The benchmark September 2010 soybean contract settled up CNY22, or 0.6%, at CNY3,867 a metric ton.

The dollar's weakness Friday and a strike by port workers in Argentina, which will slow soybean exports, both helped to support futures prices, analysts said.

Relatively strong performances Monday in other markets, such as metals, also helped to support sentiment towards agricultural products.

However, trading remained cautious in a tight CNY23/ton range ahead of a U.S. Department of Agriculture report to be issued Wednesday, which will give initial forecasts for acreage of major crops.

Cash soybean prices were slightly lower in very light trading, providing little trading guidance for futures.

Trading volume of all soybean contracts declined to 119,370 lots from 152,900 lots Friday.

Open interest fell 4,270 lots to 341,862 lots Monday.  Futures for corn, soyoil, soymeal and palm oil all settled higher.

Following are Monday's settlement prices in yuan a metric ton for benchmark contracts and volume for all contracts in lots (One lot is equivalent to 10 tons):

Contract  Settlement Price  Change     Volume 
Soybean  Sep 2010      3,867        Up   22    119,370 
Corn     Sep 2010      1,930        Up   15    113,450 
Soymeal  Sep 2010      2,828        Up   23    572,742 
Palm Oil Sep 2010      6,886        Up   28    223,370 
Soyoil   Sep 2010      7,498        Up   22    250,110 

-Zheng Xiaolu contributed to this article; Dow Jones Newswires; 8610 8400-7715; tracy.zheng@dowjones.com

DJ MARKET TALK: India Soyoil Futures Down 0.5% At Two-Week Low

0540 GMT [Dow Jones] India April NCDEX soyoil futures down 0.5% at two-week low of INR452.45/10 kg as rapeseed arrivals pick up; soybean little changed at INR2,050/100 kg. India's rapeseed output for crop year through September likely 6.32 million metric tons vs 6.20 million tons year earlier. "Farmers are releasing more rapeseed stocks in the markets after a rally in prices," says Indore-based trader; rapeseed prices up around 12% in last 10 days. Firm BMD palm oil, eCBOT soybean futures limiting soyoil losses. Trader expects soyoil in INR450-INR456 band, soybean in INR2,035-INR2,065 range.

(ravi.bhushan@dowjones.com)

Contact us in Singapore. 65 64154 140;
MarketTalk@dowjones.com

DJ MARKET TALK: India Soybean Futures Likely Up On Global Cues

0345 GMT [Dow Jones] India April NCDEX soybean futures likely to extend gains, tracking firm global markets; eCBOT soybean up 0.5%, BMD palm oil futures 0.4% higher. "But a record South American soybean crop and a pickup in local rapeseed arrivals will limit the upside," says Indore-based trader;
Brazil, Argentina soybean harvest in progress; India's rapeseed output for crop year through September likely 6.32 million tons vs 6.20 million tons year earlier. Trader expects soybean in INR2,028-INR2,070/100 kg range, soyoil in INR452-INR458/10 kg band; soybean last closed 0.9% higher at INR2,048.50,
soyoil down 0.4% at INR454.75.

(ravi.bhushan@dowjones.com)
Contact us in Singapore. 65 64154 140;  MarketTalk@dowjones.com

DJ MARKET TALK: India Soybean Futures Likely Down On CBOT Decline

0330 GMT [Dow Jones] India April NCDEX soybean futures likely lower, tracking overnight 0.8% decline in CBOT, weak soymeal export demand; India February soymeal exports down 42.6% on year to 218,748 metric tons. "High temperature in most parts of India has led to a decline in the vegetable oil demand," says Indore-based trader; edible oil consumption drops in summer owing to less demand for fried food. Trader expects soybean in INR2,000-INR2,044/100 kg range, soyoil in INR455-INR461/10 kg band; soybean last closed 2% lower at INR2,015, soyoil down 1.1% at INR458. (ravi.bhushan@dowjones.com)


Contact us in Singapore. 65 64154 140;
MarketTalk@dowjones.com

Soyoil Subsidies Create Artificial Price, Says MPOC

Soyoil is sold at a premium to palm oil owing to market-distorting agricultural subsidies given to US and European farmers by their governments, according to the Malaysian Palm Oil Council (MPOC).

It is not due to any inability of the Malaysian commodity to compete on the world stage, said MPOC chief executive officer Tan Sri Dr Yusof Basiron.

Yusof said it was difficult for palm oil to be at par with soyoil or other oils as these were being highly supported through their countries’ subsidy systems.

“So it’s not because soyoil is good that the price is high, but because of the subsidy system,” he told reporters after a roundtable discussion on the palm oil industry organised by Bernama on Thursday.

The discussion was moderated by Bernama editor-in-chief Datuk Yong Soo Heong, deputy editor-in-chief Salbiah Said and assistant editor Siti Hawa Othman.

Yusof said the subsidy system was artificially causing the price of soyoil to be higher.

On Wednesday, the US Senate passed a tax bill that included a one-year extension of the US$1 per gallon biodiesel tax credit, retroactive to Jan 1.

As reported, biodiesel production came to a virtual stop after the credit expired Dec 31 when senators could not agree on legislation that would have kept it alive.

Yusof also said the soyoil industry was crying for support in order to create good demand and high price needed by soybean farmers.

However, oil palm cannot have such a support system as there is no subsidy for palm oil in the country, he said.

“It should not be regarded that we are the discount. We are the natural price, they are the inflated price because of their subsidies,” he added.

Oil palm planters in Peninsular Malaysia have to pay windfall tax when palm oil prices go beyond RM2,500 per tonne in the cash market. Planters in Sabah and Sarawak, however, only need to pay the windfall tax if the price crosses RM3,000 per tonne.

Yusof said even with palm oil prices between RM2,600 and RM3,000, the industry was still getting the necessary income.

“We are not complaining about the price and I think everybody will be happy getting their necessary income from this industry,” he said.

According to him, oil palm is the best crop and is also competitive as it yields 10 times more oil per hectares a year compared to soybean.

“This high yield is contributing to our competitive pricing, meaning that we can compete with those costly oils in the world market,” he said.

Yusof said that due to its competitiveness, palm oil could not be replaced by soyoil or rapeseed oil.

Currently, he said, palm oil was competing with soyoil as the prices were narrowing with palm oil having a discount of about US$100 per tonne to soyoil.

The discount was likely to narrow further and palm oil could even trade at a slight premium soon, Oilworld’s editor-in-chief Thomas Mielke said recently at the Palm & Lauric Oils Conference held here.

A record soybean harvest this year may have some dampening effect on soyoil prices as palm oil prices strengthened on bullish supply fundamentals, he said.

- BERNAMA

DJ Argentina Soy Harvest Starting, But Wetness Delaying Progress

BUENOS AIRES (Dow Jones)--Argentina's farmers have started to harvest the
bumper 2009-10 soy crop, although wet conditions in many areas are slowing
things down, the Agriculture Ministry said in its weekly crop report Friday.

While conditions are mixed in some fields that received too much rainfall,
the crop is generally in good shape.

In the Pergamino district of Buenos Aires Province, yields are in line with
expectations. "Prospects are good as the crop passed all stages with optimal
temperatures and humidity," the ministry said.

The ministry hasn't forecast soy production yet, but the Buenos Aires Cereals
Exchange is predicting a record 53.5 million metric tons of soybeans this
season. The exchange raised its forecast by 1.5 million tons this week due to
the good conditions.

Corn planting is progressing, with 11% of the crop harvested to date,
according to the Agriculture Ministry. Conditions are good in most areas.

The ministry pegs output at between 19 million and 21 million tons, up
sharply from 12.6 million tons last season.

Farmers have harvested 40% of the sunflower seed crop to date, with
production forecast by the ministry at 2.2 million to 2.7 million tons.



Estimates for Argentina's 2009-10 crop production in millions of hectares
(HA) or millions of metric tons (MT).


                  Wheat    Soy       Corn      Sunseed
Ag Ministry       7.5MT    18.2HA    19-21MT   2.2-2.7MT
B.A. Cereals Exch 7.44MT   53.5MT    20.2MT    2.1MT
USDA              9MT      53MT      21MT      2.3MT
Rosario Exchange   --      52.5MT    19.7MT    --
Agritrend         8MT      53MT      19.5MT    2.2MT
Granar             --      53.4MT    19.6MT    --
Lartirigoyen       --      55.3MT    19.2MT    1.95MT
Panagricola        --      51MT      20MT      2.1MT


Argentina's historical production estimates in millions of metric tons,
according to the USDA:


                  Wheat     Soy      Corn      Sunseed
2008-09             8.4       32       12.6      2.9
2007-08             18        46.2     22        4.65
2006-07             16.1      48.8     22.5      --
2005-06             14.6      40.5     15.8      --



-By Shane Romig, Dow Jones Newswires; 54-11-4103-6738;
shane.romig@dowjones.com

DJ WSJ(3/12) Commodities Report: Soybeans Sink Thursday

DJ WSJ(3/12) Commodities Report: Soybeans Sink Thursday

(From THE WALL STREET JOURNAL)
By Andrew Johnson Jr.

Soybean futures tumbled to one-month lows, dragged lower in part by
disappointing U.S. government export-sales data that showed China had canceled
orders.

Concerns about tightening monetary policy in China and potentially record
soybean crops in South America also contributed to the declines.

The nearby March soybeans contract fell 26.5 cents, or 2.8%, to $9.255 a
bushel on the Chicago Board of Trade. May, the most-actively traded contract,
settled 27.5 cents, or 2.9%, lower at $9.305.

Soybean export sales for the week ended March 4 were a net reduction of
115,800 metric tons, the U.S. Department of Agriculture reported on Thursday.
China canceled 192,400 tons of previous purchases for the current 2009-2010
crop year, and that was more than enough to offset small sales to other
countries such as Mexico and Japan. Analysts said the net reduction in export
sales was a signal that soybean buyers are moving away from U.S. supplies and
are instead buying soybeans from South America.

In addition to the Chinese cancellations, traders also worried about monetary
policy in the country, which is the top global importer of soybeans.

China's February consumer-price index accelerated from the year-earlier
month, to a greater-than-expected pace of 2.7%, driven by a jump in food
prices.

Prices were pressured by the combination of net export-sales reductions and
fears that China's efforts to curb inflation through credit tightening will
slow the nation's buying of soybeans, said Bill Nelson, analyst with Doane
Advisory Service.

And then there is export competition from South American soybeans.

The soybean harvest is currently ongoing in Brazil, the world's No. 2
producer behind the U.S. Earlier this week, Brazil's National Commodities
Supply Corp. estimated the current soybean crop at 67.5 million tons, which if
realized, would be a record harvest.

Conab, which is part of Brazil's Ministry of Agriculture, said good yields
and favorable rains in Brazil's main soy-producing regions helped to lift
production.

However, traders said despite the losses, the market remains within a wide
near-term trading range. Concerns about two-week delays in loading supplies at
Brazilian ports and a tight U.S. balance sheet provide underlying support.

Earlier this week, the USDA reduced its estimate of U.S. soybean ending
stocks -- essentially the surplus -- to 190 million bushels, down from 210
million estimated last month.

---

Anthony Danby in Sao Paulo contributed to this article.

In other commodities-markets trading on Thursday:

NATURAL GAS: Futures slid after U.S. government data showed a normal-sized
withdrawal from storage last week that left inventories of the fuel slightly
above average as warmer spring weather approaches. Gas for April delivery on
the New York Mercantile Exchange settled 11.9 cents, or 2.6%, lower at $4.44 a
million British thermal units.

COPPER: Futures ended near steady as investor bargain-hunting and some
support from a series of earthquakes in the world's largest producing nation
were offset by concerns that China will move to curtail inflation by limiting
growth. The thinly traded nearby Comex March copper contract rose 1.1 cents, or
0.3%, to settle at $3.3660 a pound.

DJ Argentina Soy Prices Ease As Record Crop Nears Harvest

BUENOS AIRES (Dow Jones)--Argentine soy prices lost further ground this week
as a bumper crop moved closer to market.

Spot soybeans traded at ARS820 ($212) a metric ton at the Rosario Grain
Exchange Thursday, down from ARS830 a week earlier.

Local and international prices came under pressure due to lower demand for
U.S. soybeans ahead of the upcoming harvest of record crops in South America,
the Rosario exchange said.

Brazil, Argentina and Paraguay are set to smash previous soybean output
records this season, as favorable weather conditions boosted crops.

On Thursday, the Buenos Aires Cereals Exchange increased its forecast for
Argentina's 2009-10 soy production to 53.5 million metric tons, up 1.5 million
tons from last week's estimate. Output is expected to be up more than 20
million tons from last season's drought-battered crop.

"Conditions couldn't be better for the developing crops," as soaked fields in
the central farm belt dried out this week and parched fields up north saw
showers, the exchange said.

Farmers had been worrying that excess rainfall through the harvest season may
damage the crops, but the exchange said the latest weather models predicted
relatively dry weather through the harvest season.

The first early soy fields were harvested over the past week, according to
the exchange.

May 2010 soy futures traded at $213 and $215 a ton, down from $215 and $216 a
week ago.

Meanwhile, May corn contracts traded at $108 a ton in Rosario Thursday. Spot
corn wasn't traded.

Exporters are leading corn buying with the government issuing export permits
at a brisk pace, the Rosario exchange said.

Wheat trade remained stalled as farmers wait for buyers to come out with the
higher prices agreed with the government.



-By Shane Romig, Dow Jones Newswires; 54-11-4103-6738;
shane.romig@dowjones.com

GRAINS-U.S. soybeans, grains lower ahead of WASDE

* Markets on edge ahead of USDA supply/demand report

* USDA report to determine fundamental trading strategies

* Brazil soybeans 2010 estimates grow to record high

* Coming Up: WASDE report release; 1330 GMT (Adds information, commment)

By Bruce Hextall

SYDNEY, March 10 (Reuters) - U.S. soybeans, corn and wheat futures eased on Wednesday in expectation of a bearish U.S. government report on world supplies and demand for agricultural products.

The U.S. Department of Agriculture's March World Agricultural Supply and Demand Estimates (WASDE) report is due for release at 1330 GMT.

"Most of the trade seem happy to sit on their hands and wait for the WASDE reports," said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia.

"The real moves are likely to come after the WASDE, as it will help traders formulate their fundamental trading perspectives but, on the other hand, things outside markets are still a big influence. Movements in the U.S. dollar have had a pretty marked effect on prices of late."

The dollar was trading largely steady against a basket of major currencies.

The USDA is expected to trim U.S. soy stocks but leave corn unchanged.

The report will include fresh figures for South American soybean production as well as revised estimates of the 2009 soybean and corn harvests, which were delayed by wet weather.

"U.S. corn and soybean production estimates are expected to be lowered slightly this month, mainly due to wet harvest weather," said Mathews.

Chinese customs data showed the world's top soybean buyer imported 28 percent less of the oilseed in February as many crushers shut down during the New Year holidays.

Despite the fall China is still expected to be a big buyer of soybeans this year but in recent weeks has been switching to buying supplies from Brazil, the world's second largest soy exporter, where harvesting is gathering momentum.

Mathews said the 2009 U.S. corn and soybean harvests would still be at record highs.

He noted the May Chicago Board of Trade corn contract tumbled for the fourth straight session on Tuesday as the market responded poorly to the thought the USDA would raise South Amercian corn production estimates.

Traders were expecting the USDA to trim its estimate of soybean ending stocks for the 2009/10 marketing year to 194 million bushels from February's forecast of 210 million.

Corn stocks were seen mostly flat at 1.720 billion verses 1.719 billion estimated in February.

The USDA is likely to raise its estimates for Argentine and Brazilian production of corn and soybeans because of largely favorable crop weather there.

Brazil's government crop supply agency Conab said on Tuesday the country's 2009/10 soy crop would be a record large 67.57 million tonnes, above the USDA's February forecast for 66.0 million.

U.S farmers are also expected to plant big crops of corn and soybeans this year provided spring seeding in the U.S. Midwest is not unduly delayed by wet weather.

Chicago Board of Trade soybeans for March delivery were flat at $9.41-½ per bushel by 0529 GMT but the May contract fell 0.11 percent to $9.46-½ per bushel.

Corn for March delivery fell 0.42 percent to $3.57-¼ per bushel and the May contract dropped 0.41 percent to $3.67-½ per bushel. Wheat for March delivery last traded at $4.78-½ per bushel while the May contract slipped 0.51 percent to $4.87 per bushel.

A University of Missouri think-tank on Tuesday estimated U.S. farmers would grow the second-largest corn and soybean crops on record this year -- 13.134 billion bushels of corn and 3.213 billion of soybean, just missing 2009 records.

GRAIN PRICES AS OF 0410 GMT Product Last Change Pct Move End 2009 Ytd Pct RSI

move CBOT corn Mar0 357.25 -1.50 -0.42 414.50 -13.81 41 CBOT soy Mar0 941.50 0.00 0.00 1039.75 -9.45 47 CBOT wheat Mar0 478.50 0.00 0.00 541.50 -11.63 43 CBOT rice Mar0 12.77 0.00 0.00 14.57 -12.36 30 US crude Mar0 81.51 Euro/dollar 1.3600 (Corn, soybean, wheat U.S. cents per bushel) (Rice U.S. cents per hundredweight) (Crude $ per barrel) (Editing by Clarence Fernandez)

GRAINS-CBOT soy, grains firm ahead of US jobs data

* Steady dollar supports in subdued trade

* Grains stay forex-sensitive, bearish fundamentals cap

* Corn may find support in planting hitches, ethanol demand

* Coming up: U.S. February non-farm payrolls at 1330 GMT

(Updates with quotes, European trading, previous SYDNEY)

By Bruce Hextall and Gus Trompiz

PARIS/SYDNEY, March 5 (Reuters) - Chicago soybean and grain futures clawed back ground on Friday as a steady dollar supported soft commodities after a day of heavy losses.

Gains were modest as the market awaited the release later on Friday of the U.S. employment report for February, seen as a key indicator of the pace of economic recovery.

Grain markets were also waiting for direction from next Wednesday's closely watched World Agricultural Supply and Demand Estimates report from the U.S. Department of Agriculture.

"Currrency and grains markets will be choppy in front of those U.S. employment numbers tonight and if the numbers point to an improving U.S. economy you will see a rally in global equities markets and the dollar but grains could fall," said Garry Booth, an adviser at MF Global Australia.

A rising dollar makes U.S. priced commodities more expensive for buyers holding other currencies and tends to push prices of those commodities lower, as happened in Chicago on Wednesday.

Bearish fundamentals continued to cap gains, including upgrades to projected Argentine soybean and corn crops by Informa Economics on Thursday.

The respected analytical firm raised its estimate of Argentina's 2009/10 soybean production to 55.0 million tonnes and its corn production to 21.0 million tonnes, trade sources said..

In Brazil, meanwhile, the soybean harvest is gathering pace, encouraging China, the world's largest soy importer, to switch to buying supplies from the South American nation, the No. 2 soybean exporter, rather than from the United States.

China made no purchases of U.S. soybeans in the latest week.

CORN UPSIDE

Chicago Board of Trade soybeans for March delivery rose 0.70 percent to $9.39 per bushel by 1222 GMT. The contract expires on March 12.

Corn fared a little better with the March contract, which expires on March 12, rising 0.87 percent to $3.75-1/4, helped by a rising oil price.

Quality issues with the U.S. crop, strong ethanol demand and the potential planting problems could all boost corn prices in the coming weeks, Morgan Stanley analysts said in a note.

"We believe the historical tendency of prices to move higher from March to June will be even more pronounced this year," they said, seeing corn breaking through current resistance at $3.80.

Corn is a key feedstock for U.S. biofuel production.

Morgan Stanley said the USDA could raise its estimate for the 2009/10 U.S. corn crop in its March 10 report, contrary to previous expectations of a cut, but this would not necessarily weigh on the market.

"Despite large corn stocks, we reiterate the need to see an increase of almost 3 million acres of corn to be planted YoY to keep balances steady for 10/11."

On wheat markets, wheat for March delivery added 0.65 percent to $5.05-1/4 after plunging 2.6 percent on Thursday.

On Euronext, milling wheat futures were virtually unchanged to stay near contract lows. March, which expires on Wednesday, was off 0.21 percent at 119.25 euros a tonne and May flat at 123.50 euros.

With low prices and hefty grain supplies continuing to draw offers to public stores under Europe's intervention scheme, operators said any market rebound would depend on a weather incident or spillover support from corn or soy. * Prices as of 1222 GMT Product Last Change Percent Move End 2009 Ytd Percent CBOT wheat 493.25 2.75 +0.56 541.50 -8.91 CBOT corn 375.25 3.25 +0.87 414.50 -9.47 CBOT soybeans 939.00 6.50 +0.70 1039.75 -9.69 CBOT rice 12.92 -0.08 -0.62 14.57 -11.32 Paris wheat 119.25 -0.25 -0.21 131.25 -9.14 Paris maize 127.50 0.25 +0.20 135.00 -5.56 Paris rapeseed 295.50 1.00 +0.34 287.50 2.78 Crude oil 80.67 0.46 +0.57 79.36 1.65 Euro/dlr 1.36 0.00 +0.02 1.43 -5.13 *Front month contracts. CBOT contracts in cents per bushel except rice which is in dollars per hundredweight. Paris wheat in euros a tonne. (Editing by James Jukwey)

COMMODITIES-Markets hit by dollar; soy, wheat down over 2 pct

* Strong dollar pressures commodities across board

* Soybeans, wheat down more than 2 percent each

* Copper down more than 1 percent, oil nearly 1 percent

* Coming Up - U.S. non-farm payroll data, due on Friday

By Barani Krishnan

NEW YORK, March 4 (Reuters) - U.S. agricultural commodities tumbled on Thursday and metals and oil declined too as a rebounding dollar fed concern about weak raw materials demand.

Weaker U.S. home sales also cast a shadow on recovery prospects for the world's largest economy.

Soybean and wheat prices fell about 2 percent each in U.S. futures trading. Copper lost more than 1 percent and crude oil nearly 1 percent.

Even cotton, a market that had traded near two-year highs in recent sessions, ended down more than 1 percent.

The 19-commodity Reuters-Jefferies CRB index, dominated by oil, settled down 1 percent.

Soybean futures posted their biggest drop in more than seven weeks, closing below a key support level at the 20-day moving average as a firm dollar weighed on prices.

The dollar rose against the euro on comments by the European Central Bank that reinforced the view that eurozone interest rates will remain low for now.

Chicago-traded soybean futures for May fell 21-1/2 cents to close at $9.42 a bushel, a drop of 2.2 percent. The contract closed at its lowest level since Feb. 9.

"The dollar is higher and that's bearish for everything," said Vic Lespinasse, analyst for GrainAnalyst.com.

The dollar's value often decides the direction for commodity prices as a stronger U.S. currency means more costs for buyers using money like the euro. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Dollar vs commodities:

http://graphics.thomsonreuters.com/310/US_CRBVUSD0310.gif ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Chicago's soft red winter wheat for May delivery was down 13-1/2 cents, or 2.6 percent, at $5.02-1/4 a bushel, also was below its 20-day moving average.

"All of the news is bearish and there is quite a list. Exports are dropping and now India is talking about exporting wheat and corn, ethanol margins are getting hit ... there is just too much grain in the world," said Paul Haugens, veteran grains trader and a vice president for Newedge USA.

U.S. crude settled down 66 cents at $80.21 a barrel. Aside from the stronger dollar, another dampener for oil was data showing pending sales of existing U.S. homes down more than expected in January.

"The market was not responding well to the positive economic reports," said Tom Bentz, broker at BNP Paribas Commodity Futures Inc in New York.

"Once again the market is in $80/$81 range and can't sustain a rally," Bentz said.

Oil's next biggest lead will come from U.S. non-farm payroll report, due on Friday.

Economists polled by Reuters said the report was expected to show a loss of 50,000 jobs in February, compared with 20,000 job cuts in January. But some market watchers said an even greater number of job losses may have been priced into oil.

New York's most active copper contract for May. per lb.

On the London Metal Exchange, copper's benchmark contract for three-month delivery ended sharply lower at $7,370 a tonne, from $7,580 on Wednesday. (Editing by David Gregorio)

DJ USDA Export Sales Soy Complex

GX_GR211
Springfield, IL Thu, Mar 04, 2010 USDA-IL Dept of Ag Market News

The USDAs weekly export sales for soybeans totaled at 370,400 metric tons.
This is a combination of 182,400 tons for the current marketing year and
188,000 for next year. Trade guesses were between 200,000 to 350,000 tons.
Soybean meal sales came in at 88,900 metric tons and soybean oil sales
totaled 15,900 metric tons.

Soybean prices compared with value of oil and meal
                                     This week     Last week    Last year
                             Unit   Mar 4, 2010  Feb 25, 2010  Mar 5, 2009
Soybean oil, crude
tank cars & trucks
Central IL.                   /lb     36.38        35.28        27.68

Oil yield per
bushel crushed                 lb      10.96        10.99        11.30

Value from bushel
of soybeans                    $        3.99         3.88         3.13

48% Soybean Meal
unrestricted, bulk
Central IL.                 $/ton     270.90       289.60       274.80

Meal yield per
bushel crushed                lbs      43.72        43.83        43.89

Value from bushel
of soybeans                    $        5.92         6.35         6.03

Value of oil and
meal from bushel
of soybeans                    $        9.91        10.22         9.16

No. 1 Yellow Soybeans
truck price Central
IL. points                    $/bu      9.40         9.49         8.71

Difference between
soybean price & value
of oil & meal                  $        0.51         0.74         0.45

Estimated Processing
value from Univ. of Ill.
Stratsoy calculator           $/bu     10.01        10.28         9.09 

Based on crushings and production of soybean meal & oil at plants reported
by Bureau of the Census for December 2009 and March 2009

This table is presented for statistical comparison and is not intended to
indicate operating margins.

Source: USDA-Illinois Dept of Ag Market News Springfield, IL
Cordell Givens, Market Reporter 217-782-4925
www.ams.usda.gov/mnreports/gx_gr211.txt

Soybeans, Corn Rise on Argentina Crop Damage, Improved Demand

March 3 (Bloomberg) -- Soybeans gained for a fourth session and corn rose on concern that unusually heavy rain will damage crops in Argentina as the global recovery improves demand for food, animal feed and biofuel.

Some fields in Argentina received more than 5 inches (13 centimeters) of rain in the past 24 hours, causing localized flooding and reducing yield prospects, T-Storm Weather said today in a note to clients. The dollar fell the most in two weeks and the MSCI World Index rose for a fourth session on speculation that measures in Greece to curb a budget deficit will bolster confidence in the global recovery.

“It’s a combination of unfavorable weather, a weaker dollar and improving world stock markets,” said Doug Bergman, a grain broker for Advantage Traders Group in Chicago. “There are a lot of end-users hoping to get corn and soybeans bought at lower prices and are now chasing the market.”

Soybean futures for May delivery rose 5.75 cents, or 0.6 percent, to $9.6925 a bushel at 10:40 a.m. on the Chicago Board of Trade. Before today, the most-active futures fell 8.1 percent this year on U.S. government forecasts for a 34 percent jump in combined output this year from Brazil and Argentina.

Corn futures for May delivery rose 5.75 cents, or 1.5 percent, to $3.8725 a bushel in Chicago, snapping a two-day slide. Before today, the most-active futures had dropped 8 percent this year on expectations for a jump in South American production.

Corn is the biggest U.S. crop, valued at $48.6 billion in 2009, followed by soybeans at a record $31.8 billion, government figures show.

--Editors: Steve Stroth, Daniel Enoch.

To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.

DJ: MALAYSIA MAY BUY 80,000-100,000 TONS SOYBEANS; MAY-JUNE SHIPPMENT

SINGAPORE (Dow Jones)--Malaysian crushers want to buy between 80,000 and
100,000 tons of soybeans for shipment in May and June, likely from South
America, trading executives said Tuesday.

"Only part of the requirements for May are covered, and buying is yet to take
place for June," a trader in Malaysia said.

Traders said Malaysia is seeking delivered cargoes at a $1.50 premium to
Chicago Board of Trade soybean prices.

CBOT May soybean futures rose 1 1/2 cents, or 0.2%, Monday to $9.62 1/2 a
bushel.

- DJ NEWSWIRE