Corn, Wheat, Soybeans Called to Open Lower on Signs of Rising World Output

(Bloomberg) – What follows are opening calls for U.S. grain and oilseed markets.

— Wheat futures may open 8 cents to 10 cents a bushel lower on the Chicago Board of Trade, the Kansas City Board of Trade and the Minneapolis Grain Exchange on speculation that demand for U.S. exports will slow as Australian farmers harvest a record crop and Canada reported an output gain of 9 percent, Chad Henderson, a market analyst for Prime Agricultural Consultants Inc. in Brookfield, Wisconsin, said in a telephone interview.

— Corn futures are called to open 8 cents to 10 cents a bushel lower on the CBOT on speculation that rising world wheat production will reduce overseas demand for U.S. grain, Henderson said.

— Soybean futures may open 4 cents to 7 cents a bushel lower in Chicago on speculation that rising oilseed production in Canada and India and beneficial rains in South America’s biggest growing regions will curtail demand for U.S. supplies, Henderson said. Soybean-oil futures are expected to open 0.25 cent to 0.35 cent a pound lower, and soybean-meal futures may open $1.50 to $2.50 lower per 2,000 pounds.

WHAT TO WATCH: (ALL TIMES NEW YORK)
10 a.m.   U.S. IBD/TIPP Economic Optimism Index
12 p.m.   DOE Short-Term Petroleum and Natural Gas Outlooks
2 p.m.    USDA Cattle and Hog Slaughters
4:30 p.m. API Crude, Gasoline and Distillate Inventory Reports

TOP COMMODITY STORIES:
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-Weather Extremes Causing More Variable USDA Data, Analysts Say
-Wheat Crop in Australia Set for Record, Swelling Supplies
-Canadian Wheat Production Increases 9% in 2011 on Durum Gains
-Egypt Buys 240,000 Tons of Argentinean, Russian Wheat in Tender
-China Local Soy Quality Worse Than Last Year, Cnyouzhi Says
-China Grain Companies Buy 10.4 Million Tons of Domestic Corn
-Bunge May Expand Palm Business Into China Next Year, White Says
-Russia Buys 100,575 Tons of Wheat to Support Prices
-Palm-Oil Output in Malaysia May Drop as Peak Season Closes
-Iraq Buys 120,000 Metric Tons of Rice From India, Pakistan
-Meiji Holdings Slumps After Finding Radiation in Milk Powder
-Taylor Said to Lock Commodity Fund as Assets Top $1 Billion
-Christmas-Tree Spending Rises to Highest Since Before Recession
-Oil Declines on Concern That European Debt Will Be Downgraded

TOP ECONOMIC AND GOVERNMENT NEWS:
-S&P Says EFSF May Lose AAA If Any AAA Euro Member Downgraded
-French Bonds, Euro Fall on Rating Risk; U.S. Stocks Fluctuate
-Merkel, Sarkozy Unite on EU Revamp as S&P Warns on Ratings
-Euro-Region Economy Stalls as Exports Offset Construction Drop
-Emerging Stocks Snap Six-Day Advance on Europe, Growth Concerns
-Euro May Drop 7% as ECB Buys More Bonds, ING Investment Says
-Asia Faces ‘Much Greater’ Risks on Global Slowdown, ADB Says
-S&P Affirms China Rating, Sees ’Exceptional’ Growth Outlook
-Brazil Economy Stagnates as Rousseff Aims to Revive Growth

MARKETS (AS OF 9:45 A.M. NEW YORK TIME):
                              Last      %Chg
Corn                         $5.82      -1.5
CBOT Wheat                   $6.045     -1.1
Soybeans                     $11.2225   -0.4
Soybean Oil                  $0.5004    -0.5
Soybean Meal                 $281.60    -0.5
WTI Crude Oil                $100.45    -0.5
N.Y. Gasoline                $2.6212     0.3
U.S. Dollar Index            78.699      0.2
S&P 500                      1,253.28   -0.3

To contact the reporters on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net; Whitney McFerron in Chicago at wmcferron1@bloomberg.net.

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