Soy product futures ended mixed, with meal/oil spreading boosting soymeal futures while weighing on soyoil futures. December soyoil settled 0.34 cents, or 0.8%, lower at 39.72 cents per pound. Soymeal ended $2.30, or 0.8%, higher at $292.20 per short ton.(Source: CME)
IOI Chairman: Malaysia 2010 CPO Output May Fall Short Of 17.8M Tons(Source: CME)
Crude palm oil production in Malaysia may fall short of the national target of 17.8 million metric tons in 2010 as the La Nina weather event may slow transportation and disrupt harvesting cycles, Lee Shin Cheng, chairman at IOI Corp., Malaysia's second-largest listed palm oil producer by volume, said Wednesday. Malaysia's commodities ministry in July lowered its palm production forecast to 17.8 million tons from 18.1 million tons, as adverse weather conditions hurt yields. "Production will be adversely affected if the heavier-than-expected rainfall sets in during the fourth quarter," IOI's Lee told Dow Jones Newswires. He didn't give a price forecast. Palm oil usually reaches peak production during the September-November period and coincides with the monsoon season in the country. La Nina episodes are usually associated with above-normal rainfall. Though the presence of a La Nina hampers harvesting activity, heavy rainfall augurs well for future palm yields. "It may be too early to predict but with good rainfall in 2010, production in 2011 is likely to recover," Lee said.
July US Census Soy Crush Seen At 128.5M Bushels (Source: CME)
The U.S. Census Bureau is expected to estimate the July soybean crush at 128.5 million bushels, a modest decline from the prior month, owing to tight availability of supplies for crushing, according to a survey of industry analysts. The Census Bureau's crush report is scheduled for release Thursday at 8 a.m. EDT. In an Aug. 16 report, the National Oilseed Processors Association said the July crush was 124.181 million bushels, down 2.06 million bushels from June. The NOPA report includes figures only from member processors. The daily soybean crush rate slowed in July because seasonal down time in the industry and tight soybean supplies for crushing translated into a smaller month-over-month crush pace, analysts said. Supplies of soybeans from the last harvest dwindled because of strong demand and a lack of selling by farmers. July soymeal stocks are seen increasing to 350,800 short tons in the Census Bureau estimate, up from the 334,921 tons reported for June.
The slowdown in the U.S. soymeal export program is seen building supplies, industry participants said. Soyoil stocks are seen declining to 3.528 billion pounds in the report, down from 3.555 billion the previous month. In the NOPA report, soyoil stocks saw a 9.886 million pound decrease in stocks. A lower processing pace in July and a pickup in soyoil exports led to a drawdown of soyoil supplies, said Dan Basse, president of AgResource Co. in Chicago.
CHICAGO, Aug 24 (Reuters) - Soyoil prices have lagged those of the other major global edible oils for much of 2010, frustrating managed money traders who are currently sitting on their largest long position in that commodity for more than three years. But an improving technical pattern coupled with the fact that soyoil prices have recently established their widest discount to palm oil in more than a year suggests that soy oil futures may be primed for a period of strength in the weeks ahead.
Weak demand drags palm oil to 4-week lows
KUALA LUMPUR, Aug 25 (Reuters) - Malaysian crude palm oil futures dropped to one-month lows as slower overseas demand and concerns over the pace of global economic recovery weakened sentiment.
"Equities are going through a patch of uncertainty and the market is depressed at this level," said a trader with a Kuala Lumpur-based foreign brokerage.
Canadian canola crop outlook improving- Oil World
HAMBURG, Aug 24 (Reuters) - The outlook for Canada's canola (rapeseed) crop is improving but the harvest will still be down on the year, Hamburg-based oilseeds analysts Oil World said on Tuesday. Oil World has raised its forecast of Canada's 2010/11 rapeseed crop for harvesting in summer 2010 to 10.5 million tonnes, up by 0.5 million tonnes from its July estimate but still down from the 11.8 million
US corn, soybean ratings seen down on lack of rain
CHICAGO, Aug 23 (Reuters) - A lack of rain in some areas of the U.S. Midwest and the advancing maturity of the corn and soybean crops should result in a slight drop in weekly crop condition ratings, according to a Reuters poll of 10 analysts. On average, the analysts expected the U.S. Agriculture Department's weekly Crop Progress Report to show 68 percent of the corn crop rated in good to excellent condition, down 1 point from 69 percent last week.
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