Fertilizer Markets and Finance

Soaring corn prices have, in the beef market, put southern hemisphere producers in the driving seat by favouring the economics of pasture-fed cattle over those fattened on grains, Rabobank said.

Producers in Argentina, Australia and Brazil “may already be benefiting” from the market dynamics which have left many peers in the northern hemisphere, and notably the US, facing squeezed margins as high grain prices raise feed bills while soft economic growth keeps demand in check.

Some US protein producers have, unusually, turned to Brazil for corn supplies because of the expense of domestic supplies.

“Record grain prices will shift importers’ focus to the southern hemisphere as grain-based beef production in the northern hemisphere becomes less competitive,” the bank said.

“Countries whose beef production systems are mostly based on pasture will be better-positioned to supply the world at lower prices.”

Read more at Agrimoney

MP Evans forecast a bright outlook for Australian cattle prices, even after falls this year, as the feedlot-to-palm oil group unveiled a 62% jump in earnings, prompting a broker upgrade.

The performance of the group, which is listed in London, depends in the main on its Indonesian palm oil operations, which raised gross profit by 19.1% to $25.8m in calendar 2011, lifted by a rise in both prices and production.

MP Evans’ output of oil palm fresh fruit bunches hit 249,000 tonnes, leaving the company “on track” to produce 300,000 tonnes this year, and 500,000 tonnes in 2015 as new plantations mature.

Prospects for palm oil prices “in the short-term appear to be encouraging”, Peter Hadsley-Chaplin, the MP Evans chairman, added, noting forecasts for poor production of rival vegetable oil soyoil in South America, following disappointing harvests.

Read more at Agrimoney

The European Union joined the US in forecasting higher beef, and cattle, prices as it estimated that it too would see a drop in output of the meat both in 2012 and 2013 amid signs of farmers rebuilding herds.

Beef output in the European Union, the world’s third-largest producer, will fall by 3.7% to 8.06m tonnes this year, and by a further 0.7% in 2013, the European Commission said.

The declines, the first since 2009, will be driven by “sustained” demand for live animals, of which Russia and Turkey are big buyers, and the impact of lower slaughter rates for heifers - future breeding stock, signalling potential return to herd increases.

“Domestic [beef] production is expected to decrease noticeably in 2012,” the EC said in a thrice-yearly agriculture briefing.

Read more at Agrimoney

Cargill May Use Some Proceeds From Mosaic Stake Sale to Expand

Cargill Inc., the largest closely held company in the U.S., said it may use some of the proceeds from the sale of a majority stake in fertilizer maker Mosaic Co. to fund an expansion that may include further acquisitions.

AGRICULTURE:

Cattle Rise on Speculation Beef Demand Will Gain; Hogs Decline

Cattle futures rose as the Federal Reserve expanded steps to revive the faltering U.S. economy, bolstering prospects for beef demand. Hog prices declined.

Soybeans Slump to Lowest Price Since March as U.S. Crop Improves

Soybean futures fell to the lowest price since March on speculation that rain and cooler Midwest weather will boost the yield potential of the crop in the U.S., the biggest producer and exporter.

Corn Climbs as Midwest Heat Wave Reduces U.S. Yield Potential

Corn futures rose for the second time in three sessions after the U.S. said crop conditions deteriorated following a July heat wave, signaling tightening supplies in 2012.

Orange-Juice Futures Post Biggest Five-Day Slump in 12 Years

Orange juice fell, capping the biggest five-session slump in 12 years, on mounting speculation that supplies will outpace demand in the U.S. Cotton declined.

Wheat Gains as Livestock-Feed Demand May Rise on Low Corn Supply

Wheat futures gained for the first time in a week on speculation that livestock producers may demand more of the grain for a feed alternative as the condition of the U.S. corn crop worsens under a Midwest heat wave.

Raw Sugar Falls on Concern Demand May Ease; Cocoa, Coffee Drop

Raw sugar fell to a five-week low on concern that commodity demand will ease because of a global slowdown and as worldwide supplies increase. Cocoa and coffee also declined.

Colombian, Indonesian Coffee Crops May Be Smaller, ICO Says (1)

Coffee output in Colombia and in Indonesia may be smaller in the 2010-11 season than initially estimated after rainfall hurt crops, according to the London-based International Coffee Organization.