Thursday, October 21, 2010

20101021 0858 Soy Oil & Palm Oil Related News.

US soy product futures rallied with soybeans. Soyoil set a new two-year high, propelled by broad-based commodity gains including crude oil and supportive outlooks for world vegoil demand, analysts said. Soymeal hit a one-year high, rallying with the broader-based gains in commodities. December soyoil settled 1.37 cents, or 2.9%, higher at 48.47 cents per pound. December soymeal ended $9.60, or 2.9% higher, at $337.80 per short ton. (Source: CME)

Weather Hinders Planting In Brazil's Top Soy-Growing State (Source: CME)
In Mato Grosso, Brazil's No. 1 soy-producing state, main farmers are still nervously waiting for rains to trigger widespread planting, according to private weather service Somar. Planting has been delayed in many areas of Brazil's center-west soy belt that includes Mato Grosso, the country's top soy-producing state, due to insufficient rainfall in recent months caused by the La Nina weather phenomenon, which typically brings drier weather than usual. "While Mato Grosso's northern region has been getting regular rains, the southern region in particular is seeing insufficient rain [to plant]," Celso Oliveira, a meteorologist at Somar told.
Although rain doused soy-growing regions in north Mato Grosso in recent weeks, Mato Grosso's southern soy region--near the border of Bolivia--needs heavy rain to help planting, Oliveira said. Soybeans typically need a moisture accumulation of 60 millimeters or more to provide adequate humidity in the soil to help planting and germination. Although more intense rain is likely to lash the south from Oct. 25 through Oct. 29, the situation will remain precarious for many farmers who need more rainfall to begin planting or to help the seeds germinate, Oliveira said. Unfavorable weather in Mato Grosso comes as soybean prices on the Chicago Board of Trade have been propelled to reach recent 14-month highs on concerns of tighter U.S. supplies and strong export demand.
Farmers in Mato Grosso are typically the first to begin planting in mid-September, which means they can harvest and sell their beans ahead of rival neighboring states. This year, however, farmers in Parana--the country's second-largest soy-producing state--have managed to plant earlier than farmers in Mato Grosso due to ample rain.

Corn up 1 pct on dollar weakness, demand prospects
SINGAPORE, Oct 20 (Reuters) - U.S. corn futures rose more than one percent, aided by a weakening dollar and strong global demand for the grain as the market recovered from over a one-week low reached in the previous session.
"In terms of the future direction, we are going to be looking at what is happening to outside markets as they remain the most significant influence on the grains complex," said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia.

Palm oil at 27-mth peak on demand, 3,000 rgt in sight
KUALA LUMPUR, Oct 20 (Reuters) - Palm oil futures hit a new 27-month high and other vegetable markets gained as traders banked on strong export demand from China despite the country's central bank raising interest rates.
"The Chinese government didn't raise the interest rate by much, and the thing that they are worrying now is the overheating of domestic inflation," said LMC International chairman James Fry at an industry conference in Kuala Lumpur.

China sells rapeseed oil reserves, prices up
BEIJING, Oct 20 (Reuters) - China sold 299,000 tonnes, nearly all its rapeseed oil reserves offered for sale at a state auction on Wednesday, as part of efforts to dampen the rise in edible oil prices  at two-year highs.
The authorities had put up 299,800 tonnes of reserves for sale on Wednesday.

Western rains boost Argentine soy, corn sowing
BUENOS AIRES, Oct 19 (Reuters) - Rains in Argentina's western farming belt in recent days have brightened the outlook for corn and soy planting, but concern over the La Nina weather anomaly lingers, a climate specialist said on Tuesday.
The South American country is the No. 1 global supplier of soyoil and soymeal and the third-biggest exporter of uncrushed beans, so markets are closely watching for any signs of dry conditions that could harm crops.

Malaysia's Oct 1-20 palm oil exports up 5.4pct-SGS
KUALA LUMPUR, Oct 20 (Reuters) - Exports of Malaysian palm oil products for Oct. 1-20 rose 5.4 percent to 929,473 tonnes from 881,812 tonnes shipped from Sept.1-20, cargo surveyor Societe Generale de Surveillance said on Wednesday.

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