Soyoil futures rallied Tuesday, climbing on a combination of meal/oil spread unwinding and the bullish influence of soaring crude oil futures, analysts said. Crude oil influences soyoil due to its use in making renewable fuels. December soyoil settled 0.45 cent, or 1.2%, higher at 38.81 cents per pound.(Source: CME)
Palm Prices To Remain Under Pressure As Output Rises -Analysts(Source: CME)
Palm oil prices will remain under pressure over the next few months despite a bullish crop report by the Malaysian Palm Oil Board as production is expected to recover, rising to a peak in the September-November period, analysts said Tuesday.
The MPOB Monday said end-June palm oil inventories fell 7.1% compared with end-May to 1.45 million metric tons, the lowest level since August last year, as exports rose 5.5% on month to 1.44 million tons.
"We believe the shortfall in palm production could be a reflection of the general shortage of foreign workers in Malaysia, which resulted in lower-than-expected yields. Output should recover seasonally in the next few months," Tan Ting Min, an analyst at Credit Suisse Malaysia, said in a note to clients.
Malaysia's labor-intensive palm oil sector faces a dearth of foreign workers after the government introduced stricter regulations to curb rising social and security problems and reduce dependence on foreign labor.
Also, most of the Indonesian workers, who comprise a large percentage of the plantation labour force, have opted to return home due to improved work prospects and higher wages.
CPO output in June rose only 2.5% to 1.42 million tons, as production in Sabah, the top palm oil producing state, fell 23% on month, data from MPOB showed.
Despite the weak growth in June production, a double-digit rise in output this month would probably mean inventory levels may reach higher levels at end-July, analysts and plantation company executives said.
Much of the palm crop development will also hinge on the developing La Nina condition, which brings increased rainfall to Southeast Asia, improving soil conditions for the rain-fed palm trees and boosting future yields.
"The La Nina impact on CPO is likely to be positive in the third quarter, as harvesting activities in some flood-prone palm oil estates in Southeast Asia may be affected by the heavier rainfall," CIMB Research said in a note.
Palm steady as soft oil, soybeans limit gains
JAKARTA, July 13 (Reuters) - Malaysian crude palm fell slightly by the end of morning trade as softer crude oil and soybean prices erased earlier gains.
"Prices consolidated on the absence of fresh bullish news. Lower crude oil also failed to enthuse players," a trader at a local brokerage firm said.
China shows no sign of deal on Argentine soyoil
BEIJING, July 13 (Reuters) - Chinese officials showed no hint of striking a deal on Argentine soyoil imports on Tuesday, despite President Cristina Fernandez saying she expected to resolve the trade dispute within days.
Fenandez, who is visiting Beijing and will travel to Shanghai later in the week, said on Monday a deal would come within two or three days.
Rains to boost India's soybean harvest, meal export
NEW DELHI, July 13 (Reuters) - Revival in India's monsoon rains will help soybean output rise 9.7 percent this year, boosting oilmeal exports, industry officials said on Tuesday.
Farmers in India, the world's biggest edible oil importer and Asia's leading oilmeal exporter, plant soybean in the rainy months of July and August, with harvests starting from October.
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