London Feed Wheat Hits Fresh Lows
London feed wheat futures recorded new lows with November hitting 128.00 pounds a tonne, the lowest level for the contract since late November 2007.
The contract is set to close the week lower for the 5th time in a row as pressure from this year's large harvest continues to hang over the market
Benchmark November on Euronext milling wheat futures was down 1.25 euro or 0.65 percent at 190 euros a tonne, offsetting Thursday's thin rise.
The contract was also influenced by the 1.3 percent fall in November maize at 187.00 euros a tonne on the outlook of high feed wheat supplies.
The spread between the two contracts was around 10 euros, in favour of maize, at the start of the month.
Oil prices fell more than 2 percent on Thursday, capping the market's worst month in more than three years, as weak U.S. economic data reinforced worries about shrinking demand in the world's top energy consumer. Crude stands almost a dollar easier at $123.10/barrel at 13.30BST.
eCBOT Close/Early Call
eCBOT closed with corn 1-3 cents easier, beans mostly down 10-12 cents and wheat up 3 1/2 cents.
It's all about Midwest weather and Meterlogix are forecasting Midwestern states may get as much as 1 inch (25 millimeters) of rain next week.
"There just isn't any bullish news from the supply side, the prospect of a bigger-than-expected soybean crop is gaining," said one trader.
There are also signs that China will step away from the import market as the Olympics approach.
China may ask edible oil refiners including Wilmar International Ltd. to process and package 100,000 tons to 200,000 tons of reserve soybean oil for sales during the Beijing Olympic Games this month, said Tommy Xiao, analyst at Shanghai JC Intelligence Co.
"Domestic vegetable oil supply is very sufficient, and demand stays depressed," the China National Grain and Oils Information Center said in a daily report. Weak demand and the expected arrival of previously ordered soybeans have prompted traders to limit purchases of the commodity to only one or two cargoes this week, Shanghai JC said in a separate report.
Earliest calls are for corn futures to open 1 to 2 lower; soybeans 7 to 9 lower; wheat 1 to 3 higher.
Bank's Profits Drop 99 Percent As Slump Bites
Alliance & Leicester today reported a 99 per cent plunge in half-year profits after huge losses at its investment arm due to the credit crunch.
The bank, which is set to be bought for £1.3 billion by Spanish giant Santander, said that the pre-tax profits for the six months with June 30 were £2 million, compared to £290 million in the same period last year.
A &L said its treasury division made an operating loss of £272 million after the value of a range of complex investments plummeted due to the turmoil in the financial markets.
Chief executive David Bennett said that with worsening economic conditions threatening to impact further on the bank's value a takeover by Santander was the best option for the business.
"The proposal from Santander provides both greater stability and greater certainty in uncertain times," he said.
Mobile pelletiser makes fuel-from-straw feasible
FWi -- A mobile pelletising unit being developed by a Staffordshire company could finally make smaller-scale pellet production feasible for farmers. That means they could produce fuel for their own use from rape or cereal straw by burning it in a biomass boiler and also sell the pellets locally.
So far the unit is still in prototype form, but Christopher Scott from maker Pelheat says that the first production machines should be on sale before the end of the year.
Existing pelletisers tend to be large, static, semi-industrial units costing from £50,000 upwards, he says. The Pelheat version, on the other hand, is mounted on a small trailer and can be towed behind a car or pick-up.
The process involved is fairly simple, too, with material passing through a hammer mill, then into a hopper from where it is augered into a pellet mill that makes either 6mm or 8mm diameter pellets. Water or oils can be added at this stage to make the pellets bind.
The smallest model will be powered by a 24hp Perkins engine and has a typical throughput of 200kg of pellets an hour. Cost is expected to be about £20,000. Larger units, involving a 50hp engine and 600kg/hour throughput are also in the pipeline. Getting the straw into the machine simply involves unrolling a round bale and feeding it in by hand, says Mr Scott. Almost anything with a moisture content below 15% can be pelletised, including wheat and barley straw, oilseed rape cake (what's left after the oil has been extracted), dry woodchips, sawdust, miscanthus, canary or switch grass.
There are a number of biomass boilers on the market that could burn the pellets and the unit wouldn't take long to produce the 10t or so that would typically be needed to heat a farmhouse for six hours a day and four months of the year with a 50kW burner. But the real benefit will come from selling the fuel locally to other biomass boiler users.
UK: Wheat harvest well under way on early land
FWi -- Combines are rolling again across parts of the country, with wheat harvest getting underway on the early land.
In Kent, Martin Boulden had finished his oilseed rape and winter barley, and was cutting Gerald winter oats today (30 July). Rape yields had been variable, and the barley and oats had averaged 7.4t/ha (3t/acre). We'll be doing some Claire winter wheat later today, he said.
Bill Harbour was also ready to start on his Xi19 wheat, having finished some disappointing rape near Faversham, Kent,
However, three varieties of rape produced a similar, average, yield, at Adrian Dixons Northbrook Farm, Micheldever, Hants, coming in at 3.7t/ha (1.5t/acre). Oil contents were high at 44-45.5%.
In Wiltshire James Dean was combining his rape today, having finished the winter barley. His Flagon winter barley suffered from poor screenings but the Cassata did better, with both varieties yielding 7.4t/ha (3t/acre).
Suzuka winter barley had yielded very well at Jonathan Booths Ranby Hall, Market Rasen, Lincs, averaging 10.2t/ha (4.1t/acre). His winter wheat was still about a week away, he said. Its looking very promising.
USDA Weekly Export Sales Report
The USDA's Weekly Export Sales Report for w/e 24th July 2008 was released at 13.30BST today. Here's a note of what they had to say (expectations in brackets):
Wheat 726,400 MT (350-550,000 MT)
Corn 07/08 63,100 MT; 08/09 825,800 MT (550-950,000 MT)
Beans 07/08 271,600 MT; 08/09 436,000 MT (250-450,000 MT)
Meal 07/08 20,500 MT; 08/09 83,400 MT (50-100,000 MT)
Oil 12,400 MT (5-20,000 MT)
Ukraine Ups Grain Output Estimate Again
Despite recent flooding on some southern parts of the Ukraine the Agriculture Ministry there has increased it's 2008 total grain output estimate to 44-47 million tonnes. Up from last week's revised estimate of 43 million tonnes.
Prime Minister Yulia Tymoshenko stated today while opening the Government's meeting. "Despite bad weather conditions observed recently in Ukraine's western regions, Ukraine will receive the forecasted grain yield", the Head of Government emphasized.
She said that 23.4 million tonnes of grain have already been gathered in Ukraine, i.e. 50 percent of the expected yield. "These figures are very encouraging", the Prime Minister noted. According to the Premier, ten regions have already got past the one million tonne boundary as to grain harvesting; the Luhansk and Cherkasy regions are approaching it.
As UKRINFORM reported, earlier the Agricultural Policy Ministry had forecasted the grain yield for 2008 at the level of 40 million tonnes, and later increased it to 44 and 47 million tonnes.
The 2007 grain harvest in Ukraine produced 29.3 million tonnes.
eCBOT Close/Early Call
Having traded either side of unchanged for most of the morning eCBOT session a late sell-off ensued in the last half hour to send most products to close at or near session lows.
August beans closed 4c lower, but other active months ended with losses of around 9c. Wheat dipped late to close around 2c easier and corn around 5c lower.
Crude has dipped just under the $126/barrel mark, around 80c under last night's close.
Early calls on this afternoon's session are: Corn futures are expected to open 3 to 5 lower; soybeans 7 to 9 lower; wheat 1 to 2 lower.
