Wednesday, August 18, 2010

20100818 1010 Soy Oil & Palm Oil Related News.

Soy product futures bounced in unison with soybeans, with soymeal climbing on concerns of tighter soybean supplies amid lingering yield uncertainties. December soymeal ended $4.40 or 1.5% higher at $299.80 per short ton. December soyoil settled 0.14 cents or 0.3% higher at 42.21 cents per pound.(Source: CME)

Sudden Death Syndrome 'Toasts' Iowa Soybean Crop.(Source: CME)
Most soybean fields in Iowa--a state normally ranked as one of the nation's top-two producers of that important oilseed--are currently under siege from Sudden Death Syndrome, a dramatically named plant disease that often slashes harvest yields by 20% to 60%.
"Over 50% of soybean fields are affected in Iowa, based on the survey we did," said Iowa State University plant pathologist X.B. Yang, widely considered one of the world's leading experts on soybean disease. "Illinois, southern Minnesota, eastern Nebraska [soybean fields] will be affected with less degree."
Although SDS is caused by a soil fungus, [Fusarium virguliforme] that infects soybean roots early in the growing season, symptoms do not become apparent until July/August, first appearing as yellowish spots on foliage. All infected leaves eventually wither and die, killing the plant outright.
"The worst infestations appear to be in central/eastern Iowa, extending into northern/central Illinois. One observer near Peoria said this was the first case of SDS that he had ever witnessed in his vicinity," said Marion, Iowa-based market consultant Rich Balvanz of AMS Commodities. "Unlike some years, when SDS is limited to minor spots within a field, whole fields are being affected by the condition, which results in premature death of plants at the same time that pods are in the critical filling stage."
Yang said in an interview Tuesday that 2010 is, "easily one of the top 1 or 2 worst years for SDS since it was first discovered in 1994. Some fields are toasted [completely dead]."
Growers with fields infected by SDS have little recourse, apart from rotating to a different crop, as no fungicides exist to battle the disease and no soybean varieties exhibit complete resistance to SDS. The disease is exacerbated by exceptionally early plantings in wet soil, exactly the type of field conditions which prevailed across the Midwestern grain belt this spring.
"Losses vary from field to field ... depending at what growth-stage the disease shows up and how large of an area is affected," Yang said. "I have seen losses as high as 30 bushels per acre. Generally severe premature defoliation can lead to 10 bushel losses."
The U.S. Department of Agriculture last week predicted that Iowa soybean farmers would harvest average yields of 51 bushels an acre, equal to last year, and the second-highest for any state in 2010, trailing only Nebraska. Total bean production in Iowa was penciled in at nearly 518 million bushels, equaling 15% of the entire U.S. crop of 3.43 billion bushels.
Although national soy crop scores published Monday by the USDA remained unchanged from a week previous, the amount of Iowa bean acreage deemed worthy of classification as 'good' or 'excellent' tumbled 4 percentage points, to 69%.
"State-by-state [soybean yield] projections showed a decline of about three-tenths of a bushel [in national soybean yields], with significant set backs noted, due to too much rain in Iowa," said Farm Futures analyst Bryce Knorr.

Weaker soy, exports drag palm oil to one-week lows
KUALA LUMPUR, Aug 17 (Reuters) - Malaysian crude palm oil futures fell to more than one-week lows along with other vegetable oil markets although prospects of lower production reined in losses.
"Palm oil fell in unison with the broader market, however, a lack of millers selling in the cash market kept the underlying (sentiment) strong," said another trader in Kuala Lumpur.

China says working to resolve Argentina soyoil dispute
BEIJING, Aug 17 (Reuters) - China's commerce ministry said it was working with Argentina on a mechanism to help resolve a trade dispute over soyoil, but gave no time frame for the resumption of soyoil imports from the world's largest exporter.
"Last month, our ministry had deep discussions over the issue with the Argentina side," said Yao Jian, the ministry's spokesman at a regular news conference.

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