EHedger

Sorghum:

Net sales of 117,800 MT–a marketing-year high–were for Mexico (90,300 MT), Japan (14,200 MT), and unknown destinations (13,300 MT). Exports of 28,100 MT were for Mexico.

: Net sales of 293,000 MT–a marketing-year high–were up noticeably from the previous week and from the prior 4-week average. Increases were reported for unknown destinations (70,400 MT), the Philippines (65,000 MT), Japan (35,900 MT, including 6,000 MT switched from unknown destinations), the Dominican Republic (21,300 MT), Mexico (17,900 MT), and Egypt (16,000 MT).

Decreases were reported for Guatemala (2,200 MT). Exports of 149,100 MT were down 13 percent from the previous week and 1 percent from the prior 4-week average. The primary destinations were Mexico (26,600 MT), Venezuela (25,000 MT), Canada (17,400 MT), Japan (11,000 MT), the Dominican Republic (10,900 MT), Honduras (10,500 MT), and Libya (10,200 MT).

Net Upland sales of 212,300 running bales were down 18 percent from the previous week and 30 percent from the prior 4-week average. Increases were reported for China (68,200 RB, including 2,100 RB switched from South Korea), Turkey (36,300 RB), Pakistan (23,500 RB), Mexico (22,000 RB), Vietnam (17,500 RB), India (14,800 RB), Taiwan (14,200 RB), Thailand (11,500 RB), and Bangladesh (4,800 RB). Net sales of 53,900 RB for delivery in 2009/10 were for Mexico (48,100 RB) and South Korea (5,800 RB). Exports of 289,700 RB were up 22 percent from the previous week and 10 percent from the prior 4-week average.  The primary destinations were China (79,800 RB), Turkey (52,000 RB), Pakistan (26,100 RB), Indonesia (24,700 RB), Mexico (20,000 RB), and Taiwan (15,900 RB). Net American Pima sales of 3,100 RB were mainly for Hong Kong (2,000 RB), Thailand (400 RB), and Bangladesh (300 RB). Exports of 1,600 RB were mainly to Bangladesh (600 RB), Taiwan (500 RB), and Hong Kong (300 RB).

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DJ WHO Dir-Gen Chan Hikes Pandemic Alert To Phase 5 Vs Phase 4

Wednesday, April 29th, 2009

ZURICH (Dow Jones)–The World Health Organization late Wednesday raised its level of pandemic alert to Phase 5, from 4 previously, as cases of swine flu mount. 
 
“The biggest question now is this: How severe will the pandemic be?” WHO Director-General Dr. Margaret Chan said on a media call.
 
  

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China cancelling soy cargoes as margins fall-trade

Wednesday, April 29th, 2009

BEIJING/SINGAPORE, April 29 (Reuters) - Chinese soybean buyers have cancelled up to five U.S. soybean cargoes in the past few days because plentiful imports are squeezing crushing margins, traders said on Wednesday.

“We heard some 4-5 cargoes for June, July and August shipment were cancelled. Crushing margins have fallen a lot recently,” said one Beijing-based trading manager with an international trading house.

Some of the traders contacted by Reuters said they had no direct knowledge of the actual cancellations, and gave varying estimates of the number of cargoes that had been cancelled. Another trading manager said he had also heard of similar amount of cancellations but could not confirm the details, while several sources put the number of shipments at two or three.

Buyers have booked U.S. soybean cargoes on fears of reduced supplies from Argentina, but the heavy flow of imports has pressured crushing margins, pushing them to break-even or even negative.

The trading manager at the international trading house said some operators’ crushing margins had fallen by as much as $25 per tonne from this year’s highs because of falling Chinese prices for soymeal and soyoil.

Margins could worsen further in May and June because of cargoes that were too late to cancel, he said. “We are hearing of 3 cargoes being cancelled for May and June shipment. These are full panamax size cargoes,” said a manager with an international trading house in Singapore which has direct sales to China.

A panamax cargo would be about 65,000 tonnes.

On Tuesday, the biggest drop in Chicago Board of Trade soy markets came in front-month May <SK9>, down 15- cents at $9.89- a bushel.

But the popular July/November soy spread — the price difference between the two contracts — gained more attention as it weakened 9- cents. July soy <SN9> has been trading a $1 or more premium to November <SX9> given the strong demand for old-crop beans. On Tuesday, the spread closed at 83 cents, premium July, as traders took profits.

In addition, export inspection figures issued by the U.S. Agriculture Department on Monday underscored a cooling of demand by China for U.S. soybeans, with 7 million bushels inspected last week, one-third the previous week’s tally and below trade estimates.

China’s Commerce Ministry warned last week about potential risks as China’s soybean and rapeseed imports in April approach record levels, which may cause oversupply in the country because harvesting is about to begin for the domestic rapeseed crop.

The ministry estimated April imports of soybeans at 3.83 million tonnes, the third highest monthly figure ever.

The ministry’s forecasts have often undershot the actual figure and traders said they expected April imports to top 4 million tonnes.

“The crushing margins have come down, demand for feed has fallen. More importantly April and May projected shipments seem to be on the higher side.”

He also added that some of the large buyers might be renegotiating to wash out their cargoes.

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World animal health body says swine flu wrong name

Monday, April 27th, 2009

PARIS, April 27 (Reuters) - The flu virus spreading around the world should not be called “swine flu” as it also contains avian and human components and no pig was found ill with the disease so far, the World Animal Health body said on Monday.

A more logical name for it would be “North-American influenza”, a name based on its geographic origin just like the Spanish influenza, another human flu pandemic with animal origin that killed more than 50 million people in 1918-1919.

“The virus has not been isolated in animals to date. Therefore it is not justified to name this disease swine influenza,” the Paris-based organisation said in a statement.

Fears of a global flu pandemic are growing around the world after 103 people were killed in Mexico and new infections were found in the United States and Canada and possible cases as far afield as Europe, Israel and New Zealand. [ID:nN26482522]

The OIE warned that if the virus was shown to cause disease in animals virus circulation could worsen the regional and global situation for public health.

Fears there could be a global flu pandemic which would hurt fragile world economices has led to a broad-based decline in stocks, oil and other commodity markets on Monday.

Grain and oilseed markets fells harply on concern that the outbreak could reduce feed demand for grain-hungry pigs. [ID:nLR350048]

For a Take a Look on the latest flu outbreak double-click on [ID:nFLU]

For a factbox of past flu pandemics double-click on [ID:nN24440477]

(Reporting by Sybille de La Hamaide, Editing by Peter Blackburn)

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WSJ: Pork Industry Moves to Quell Flu Fears

Monday, April 27th, 2009

The U.S. pork industry shifted into rapid-response mode following the news of an outbreak of swine flu in humans, trying to quell disease fears and protect an already weak pork market. Although there appears to be no evidence yet tying the flu to human contact with pigs, Russia banned meat imports from Mexico, several U.S. states and nine Latin American nations.

In a news release Sunday, the National Pork Producers Council said, “Pork is safe to eat.” The producers council, citing the Centers for Disease Control, said “preliminary investigations have determined that none of the people infected with the hybrid flu had contact with hogs.” The association also said people generally don’t contract swine flu through eating pork or pork products, especially if the meat is “properly handled and cooked.” But the council urged producers to tighten their protocols to protect pigs from the virus, including restricting public access to barns.

The flu threatens to pose a challenge for an industry that has already seen exports decline as the recession has hurt global meat demand. In February, pork exports were down about 13% versus February 2008, said the U.S. Agriculture Department.

High feed costs also are hurting the industry, with many pork producers barely profitable. Smithfield Foods Inc., one of the world’s largest pork producers, Smithfield, Va., reported a $103.1 million net loss in its most recent quarter.

The industry has been “looking for any signs of strength,” said Joseph Kerns, purchasing director at pork producer Iowa Select Farms, Iowa Falls, Iowa. The flu “is potentially another dagger in the back,” he said, but “it’s not time to push the panic button yet.”

The World Health Organization said Sunday there is no evidence swine flu is spread by exposure to pork or pigs. A preliminary investigation by the CDC did not show that any of the 11 people in the U.S. who contracted the virus had been in contact with pigs.

“Based on the CDC’s analysis, there does not seem to be any reason to restrict pork imports or consumption, but this situation is so new that it undoubtedly will take a few days for the correct information to reach all parties,” Jim Herlihy, vice president of information services for the U.S. Meat Export Federation, an industry group.

According to the group’s Web site, in 2008 Russia was this nation’s fourth-largest international customer for pork and pork variety meats, with 217,767 metric tons worth $476 million. For January and February 2009, exports to Russia were down 49% from year ago, at 13,721 tons valued at $24.8 million.

Write to Lauren Etter at lauren.etter@wsj.com, Debbie Carlson at debbie.carlson@dowjones.com and Curt Thacker at curt.thacker@osterdowjones.com

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