Oil tops $82 ahead of Bernanke speech as dollar weakens
SINGAPORE, Oct 25 (Reuters) - Oil rose past $82 as the dollar weakened ahead of a speech by Federal Reserve Chairman Ben Bernanke, where he may outline details of an expected new round of U.S. monetary stimulus.
"People are still focused on QE and the fact that they are going to be printing more money."
Japan Sept crude oil import volume down 0.8 pct y/y
TOKYO, Oct 25 (Reuters) - The volume of Japan's customs-cleared crude oil imports fell 0.8 percent in September from the same month a year earlier, the Ministry of Finance said on Monday.
Japan, the world's third-biggest oil consumer, imported 17.758 million kilolitres (3.72 million barrels per day) of crude oil last month, the preliminary data showed.
U.S. corn jumps 2 pct on weak dollar, soy up 1.5 pct
SINGAPORE, Oct 25 (Reuters) - U.S. corn futures rose more than 2 percent, edging closer to a two-year high reached earlier this month as a weakening dollar supported commodities amid prospects of strong global demand for the grain.
"The dollar index is down around half a percent from Friday's close, which is providing overwhelming support to the entire commodity complex."
Soy, corn sowing bound ahead in Argentina - gov't
BUENOS AIRES, Oct 22 (Reuters) - Argentine farmers made swift progress to plant corn and soybeans this week, with some growers starting early to take advantage of moist soils, the Agriculture Ministry said on Friday.
Argentina is the world's No. 3 soybean supplier and growers gathered a record 52.7 million tonnes last season, although there are concerns that dry weather linked to the La Nina weather phenomenon could affect the oilseed during this campaign.
ITS CPO export down 4.7% to 1,108,384 tonnes for the period of 1~25 Oct 2010.
SGS CPO export up 1% to 1,091,158 tonnes for the period of 1~25 Oct 2010.
Soy product futures ended mixed, with soyoil rising against soymeal on spreads. Soyoil was buoyed by spillover strength from crude oil and supportive demand outlooks for world vegoils, analysts said. Soymeal futures drifted lower, succumbing to oil/meal spreading and end-of week profit taking. December soyoil settled 0.06 cents or 0.1% higher at 48.30 cents a pound. December soymeal ended $2.50 or 0.7% lower at $330.90 a short ton. (Source : CME)
Chinese Buying of US Soybeans On Record Pace (Source : CME)
Chinese buyers are scooping up U.S. soybeans at a record pace this fall as changing diets and concerns of a supply shock drive a fundamental shift in export demand. The robust appetite for beans from an ocean away is behind a rally in U.S. soybeans futures, which hit a 14-month high this week. The surge is expected to trickle down to supermarket shelves eventually. The strong buying comes as China looks to keep up with a growing appetite among its middle class for pork and chicken, which are fattened with feed made from soybeans. The country is stockpiling beans to steady food prices and protect against any hiccups in global supplies, particularly from South America. Domestically, China isn't increasing the size of its soybean crop, instead finding it easier to rely on imports, analysts said. Chinese buyers have booked 15.3 million metric tons in soybean sales so far in the current marketing year, which started Sept. 1.
That's 14% more than the same period a year ago and more than double the sales levels in 2007 and 2008. China's domestic soybean production is stuck around 15 million to 16 million tons, while per-capita meat and vegetable-oil consumption grow. That leaves the country more vulnerable to potential supply problems in South America. Demand from China typically shifts to South American in January, but any disruptions force buyers to return to the U.S. market. The volatility of prices seen in the last few years may be factoring into China's move to build soybean stocks, said Bill Nelson, analyst with Doane Advisory Service in St. Louis, Mo. Strong sales into China are driven in part by fears recent drought conditions will continue in Brazil, the world's second-largest soybean exporter after the U.S, said Tim Hannagan, analyst with PFG Best in Chicago. "That has led to building stocks, particularly after price volatility seen with wheat after a devastating drought in Russia earlier this year," Nelson said.
China significantly increased its inventories of soybeans in the last decade, raising stocks from an average of 3 million to 4 million tons to 15.6 million projected for 2011 by U.S. Department of Agriculture. Overall export sales from the U.S. into China have surged in just a few years. In the last marketing year, the value of soybean exports totaled $9.139 billion, up 28% from the prior year, and up from $2.693 billion from five years ago, according to data from Department of Commerce, U.S. Census Bureau, and Foreign Trade Statistics. China is the biggest U.S. customer by far, dwarfing Mexico --the second-largest export location--at $3.268 billion last year. U.S. soybean futures have rallied 21% since Sept. 1, as export demand overshadowed seasonal pressures from a record projected 2010 U.S. soybean harvest. Futures, which traded around $12 a bushel Friday at the Chicago Board of Trade, remain below all-time highs reached in 2008.
Yet analysts expected prices to post further gains this year since a pullback in Chinese demand isn't likely. The price strength is an advantage for farmers worldwide. Yet for those in the U.S., the strong export demand won't necessarily mean they'll plant additional acres of soybeans. Corn prices are strong as well, and farmers face less global competition for that crop. Processors, however, are likely to suffer under strong bean prices as they absorb increased commodity costs or try to increase their selling price and risk losing market share.
U.S. corn, soy rise 0.7 pct on firm equities, oil
SINGAPORE, Oct 22 (Reuters) - U.S. corn and soybeans rose around 0.7 percent on Friday as gains in Asian equity markets and crude oil supported grain futures amid technical signals indicating higher corn prices.
"Really what is driving the grain markets is the outside influence," said Paul Deane, agricultural commodity strategist at ANZ. "We are seeing a bit of bounce in equities...it is sort of global attitude to risk."
Gain on China demand hopes, palm around 3,000 rgt
KUALA LUMPUR, Oct 22 (Reuters) - Global vegetable oils hovered on Friday below their highest in more than two years as traders waited for more signs of continued Chinese demand for agriculture commodities and stronger crude oil markets.
"We believe an underlying U.S. dollar weakness over the next few years would sustain an upward shift in soft commodity price movements," said Hwang DBS in a research note.
Oil palm expansion to slow in Indonesia-DBS Bank
KUALA LUMPUR, Oct 22 (Reuters) - Planters in Indonesia are likely to slow oil palm estate expansion thanks to a looming two-year ban on clearing forests and growing scrutiny by green groups and consumers, DBS Bank said on Friday.
As a result, Malaysian and Indonesian planters will hold back on aggressive planting in 2010 and the years to come despite capital raising exercises last year to exploit low interest rates.
Indonesia to produce 22 mln T of palm oil in 2010-assoc
JAKARTA, Oct 22 (Reuters) - Indonesia is expected to produce 22 million tonnes of crude palm oil this year, down slightly from earlier expectations for 22.5 million tonnes because of prolonged rains, an industry association official said on Friday.
The Indonesia Palm Oil Association official said exports would be 16 million tonnes in 2010.
Argentina ahead with 2010/11 soy seeding-exchange
BUENOS AIRES, Oct 21 (Reuters) - Argentine farmers progressed swiftly with soy sowing last week due to damp soils in top farming regions and are well ahead of last year's seeding pace, the Buenos Aires Grains exchange said on Thursday.
Planting for the 2010/11 soy season started recently in the South American country, the world's No. 3 exporter, amid strong demand for soybeans from China, the top importer of the oilseed.
Argentine soy stocks seen ample to meet demand
BUENOS AIRES, Oct 21 (Reuters) - Argentina has sufficient stocks of the bumper 2009/10 soy crop to meet a surge in global demand until the start of the new season harvest in March, industry analysts said on Thursday.
Argentina is the world's No. 3 supplier of soybeans, much of which are shipped to China. Chinese crushers are snapping up South American beans, including new season soy, driving spot U.S. soybean futures to a fresh 14-month high.
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