Thursday, October 7, 2010

20101007 1002 Soy Oil & Palm Oil Related News.

Reuters Malaysia Crude Palm Oil Poll for the month of Sep 2010  :
Stocks seen up 2.5%
Output seen up 0.02%
Export seen up 23.8%

Soy product futures drifted lower in unison with soybeans. Soyoil futures were lower, but emerged as the strongest link in the soycomplex, garnering support from former crude oil futures, underlying supportive export demand outlooks, analysts said. Soymeal futures followed soybeans lower, with oil/meal spreading weighing on prices as well. December soyoil settled 0.04 cents or 0.1% lower at 43.78 cents per pound. December soymeal ended $3.50 or 1.2% lower at $295.80 per short ton. (Source: CME)

China Corn Demand Seen Higher Than Expected - Experts (Source: CME)
China's voracious appetite for corn may be bigger than originally thought as the Asian giant builds up stocks in a bid to ensure security of food supply, experts said Wednesday. Reports that China's crop may not reach the record levels hoped, forcing it to rely on imports from the U.S. and Argentina, have boosted prices to highs of over $5 a bushel in Chicago in recent weeks. Despite U.S. Department of Agriculture figures pegging China's corn stocks at record levels this year, a surge in grain imports in recent weeks has created skepticism in the market. China's corn imports in the first eight months reached 714,041 metric tons, according to government figures. But observers say actual exports could easily exceed 1 million tons and analysts predict they could reach between 3 million and 5 million tons this year if the country suffers a poor harvest.
"China is the wild card in the corn market," said Alex Bos, a commodities analyst at Macquarie. "If China does import 5 million tons of primarily U.S. corn in the year ahead, it will be bullish for the market. "That's a fairly large amount of corn the U.S. doesn't necessarily have," Bos said. Estimates for the size of China's corn harvest also vary widely. While the USDA has so far predicted a 7% year-on-year growth in production to 166 million tons, the U.S. Grains Council expects only a small increase of 2% to 158 million tons after its recent tour of the growing areas. China's government has already released 15 million tons of corn from the country's stocks, but growing meat demand from the country's rapidly expanding, wealthy middle class may force the country to up its corn purchases even more as the government negotiates politically sensitive fears around food security.
"Politically they see the need to have bigger strategic stocks to help manage internal inflation," said Steve Jesse, director of Barclays Capital. "We might be underestimating consumption in China."

Wheat up, corn steady on stimulus hope; soy falls
SINGAPORE, Oct 6 (Reuters) - U.S. wheat gained , while corn was largely unchanged as grains held on to advances made in the previous session amid a broad-based rally in financial markets, underpinned by hopes of monetary easing.
"Fundamentally it may not be right, but it is the optimism which is leading everyone to buy some these commodities," said Jonathan Barratt, managing director of Commodity Broking Services in Sydney.

Palm at 1-wk top on easing hopes; U.S soy crop drags
KUALA LUMPUR, Oct 6 (Reuters) - Palm oil prices hit a near one-week high  on expectations of a new round of central bank action to ginger up weakening economies although a record U.S. soy crop dragged on sentiment.
"Palm oil is treading higher again after the recent sell-off and on the domestic side, many are predicting that the seasonal rise in Malaysian production will be overwhelmed by solid exports," said a trader in Kuala Lumpur.

Analysts indicate smaller Brazil soy crop this year
SAO PAULO, Oct 5 (Reuters) - Brazil's 2010/2011 soybean crop is expected to come in slightly smaller than the record harvest last season, despite an expansion of the planted area, an average of eight outlooks indicated.
Brazil's new soy crop that producers began planting in the past days is seen at 67.9 million tonnes, the average of forecasts ranging from 65 million to 69.8 million tonnes. Last season, output reached a record 68.6 million tonnes, according to the same eight sources.

Brazil's newly moistened soy belt awaits new rains
SAO PAULO, Oct 5 (Reuters) - After the first spring rains fell on Brazil's soybean belt over the past week and triggered planting of the new crop, producers are awaiting new rains that are essential for the success of the newly planted fields.
Early planting has started in No.2 soy state Parana and No.5 producer Mato Grosso do Sul that have been favored by initial rains in late September and early October. Producers will likely step up planting as a new wave of rain is forecast for Thursday over the region.

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