Monday, August 23, 2010

20100823 1015 Soy Oil & Palm Oil Related News.

U.S. soy product futures finished lower on projections that the upcoming soybean harvest will be larger than previously expected. Yield reports from participants on the annual Pro Farmer Midwest Crop Tour were up from last year, and the group Friday pegged soybean production 100,000 bushels above USDA's latest estimate. Losses in crude oil added spillover pressure to soyoil, a trader said. Commodity funds sold an estimated 1,000 soymeal contracts and 3,000 soyoil contracts. CBOT December soymeal ended down $2 to $293.10 per short ton, and December soyoil lost 0.39 cent at 40.09 cents per pound. (sOURCE: CME)

Top Soy Companies Double Soy Area In Brazil's Mato Grosso(Source: CME)
Mato Grosso's Agricultural Economy Institute, or Imea, said that top soy producers have doubled the size of their soy areas in the last five years in Mato Grosso state, Brazil's No.1 soy producing state. "This is part of a natural trend for concentration by the biggest players and we expect this trend to continue for the coming years," Otavio Celidonio, CEO at Imea, told Dow Jones Newswires on Friday. Celidonio said that the top 20 biggest international and Brazilian agricultural companies in Mato Grosso planted 1.2 million hectares in 2009-10 versus 533,700 hectares in 2004-05. These companies account for 20% of the soy grown in Mato Grosso on 6.2 million hectares, as often indebted small- and mid-size farmers sell their land, he said. Big companies have economies of scale and can often get better prices for their beans. They also pay less for their inputs such as fertilizer, Celidonio said. Mato Grosso has for a long time seen companies such as Grupo Andre Maggi running giant agribusiness operations.
This compared to Parana, the No.2 soy producing state, where farmers are more often smaller in size and linked to cooperatives. Mato Grosso has also recently seen the arrival of large-scale international players such as Argentina's Los Grobo and El Tejar. The 2009-10 soybean harvest ended in May and planting for the new 2010-11 crop will begin in September in Mato Grosso. Brazil is the world's No.2 soybean producer after the U.S.

Markets tumble as supply outlook outweighs weather woes
KUALA LUMPUR, Aug 20 (Reuters) - Malaysian crude palm oil futures notched their biggest weekly fall since last October as traders took profits from a recent weather rally in global soyoil markets and lower palm oil exports.
"External markets dropped in expectations of bumper soy crops in the United States as well as rumours that China would auction rapeseed and soyoil stocks from the state reserves," said an oil analyst in northern city of Heilongjiang.

China's top soy area sees bumper harvest -CNGOIC
BEIJING, Aug 20 (Reuters) - Heilongjiang province, China's top soy area, is expecting a bumper harvest in October despite plantings being delayed by about 10 days, said the China National Grain and Oils Information Centre (CNGOIC).
The centre cited the Heilongjiang Soybean Association as saying yields could increase by 10 percent if the weather was favourable in the later growing period. It did not give any figures.

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