Wednesday, December 1, 2010

20101201 0842 Soy Oil & Palm Oil Related News.

Soy product futures rose in unison with soybeans Tuesday. Soyoil was the upside leader, underpinned by oil/meal spreading, with supportive world vegoil price influences amid strong China demand buoying global prices, analysts said. CBOT Jan soyoil ended 0.78c or 1.6% higher at 51.00c per pound, and Jan soymeal traded $2.10 or 0.6% higher at $340.70 a short ton. (Source: CME)

Argentina Farm Equipment Sales Soar Amid Farm Boom (Source: CME)
Argentine farm machinery makers are expected to see record sales this year as the country's farmers take advantage of a bumper crop and high grain prices to buy new equipment. "This is the best year ever," Jose Alustiza, president of farm machinery chamber CAFMA and manufacturer Maizco SA, said in a telephone interview. Sales of domestically made farm equipment are on track to reach $1.38 billion this year, up from the previous record of $1.35 billion in 2007, he said. Argentina is among the world's top exporters of soybeans, corn and wheat, and record grain harvests last season proved a boon to farmers. Farmers, flush with cash, are splashing out to buy new equipment with the latest technological advances such as precision fertilizer and pesticide dispersers, Alustiza said. Machinery sales have also benefited from subsidized loans provided by Argentina's state-run Banco de la Nacion, he added.
U.S.-based Deere & Co., one of Argentina's leading providers of farm machinery, said last week that it expects sharply higher farm income in Brazil and Argentina next year thanks to higher crop prices. "We've had an incredible year," Carlos Castellani, president of one of the country's largest makers of planting equipment, Apache SA, said in a press release. For privately-held Apache, sales really took off in the second half of the year thanks to record soybean planting and high prices for the grain, Castellani said. But locally-made machinery sales is just the tip of the iceberg. Only 25% of the harvesters sold in Argentina each year are domestically-made, as are about 30% of the tractors, according to Alustiza. Farm machinery imports rose 70% on the year to $622 million during the first eight months of 2010, according to local research firm IES Consultores. About 53% of imports came from Brazil, followed by 17% from U.S. and 7.5% from Germany.
Most of the harvesters and tractors imported by Argentina each year come from Brazil, where both local and international manufactures such as Deere & Co have plants. However, the most powerful machines are still made in the U.S. and Europe.

Wheat up for 4th day on weather concerns;corn, soy steady
SINGAPORE, Nov 30 (Reuters) - Chicago wheat futures  bounced half a percent, rising for a fourth  straight session as adverse weather across the U.S. winter  crop areas and excessive rains in Australia continued to  support the market.
"The headline story for wheat has certainly been in  excessive rains in Australia, also they are also talking about  cold weather and not too much rain for hard red belt in the  U.S.," said Brett Cooper, a senior manager of markets at  FCStone Australia.

Palm oil hits 28-mth high on demand, weather
KUALA LUMPUR, Nov 30 (Reuters) - Malaysian palm oil  rallied to a 28-month high as traders bet on  continued strong export demand amid lingering concerns over  erratic weather in edible oil producing regions.
"The market always gets optimistic ahead of a price  conference like that, but this time, there is some credibility  as demand is strong and production is under pressure," said a  trader with a foreign commodities broker.

Malaysia's Nov palm oil exports up 19.2 pct-SGS
KUALA LUMPUR, Nov 30 (Reuters) - Exports of Malaysian palm oil products for November rose 19.2 percent to 1,569,314 tonnes from 1,316,908 tonnes shipped during November, cargo surveyor Societe Generale de Surveillance said on Thursday.

Argentina soy crushing rises 47 percent in October
BUENOS AIRES, Nov 29 (Reuters) - Argentine soy crushing rose 47 percent year-on-year in October to 3.56 million tonnes, boosted by the record 2009/10 harvest, the government said in its latest report.
Argentina is the world's top supplier of soyoil and soymeal and the third-biggest exporter of unprocessed beans.

Rain to soak Brazil CW soy, No. 3 state still dry
SAO PAULO, Nov 29 (Reuters) - Widespread rain is headed for Brazil's No. 1 soybean producing state of Mato Grosso, which will favor the germination of the newly planted crop in the center-western state, forecasters Somar said on Monday.
Mato Grosso, which accounts for a quarter of Brazil's soy output, saw 37mm (1.5 inches) of rain over the weekend in its central growing region. This will bring November rainfall totals to 184mm, 22 percent shy of the 236mm average that falls for all of November.

China seen importing little corn, more soy in 2011
HONG KONG, Nov 30 (Reuters) - China will import only a small volume of corn in 2011 amid a record domestic harvest, but imports of soybeans will continue growing in coming years, the head of China's top grain trader told Reuters.
Frank Ning, chairman of COFCO Ltd , did not foresee any dramatic food shortages in the world's most populous country, even though food prices helped drive the country's inflation to a 25-month high in October.

Italy biodiesel output to recover 2011, 2012
MILAN, Nov 29 (Reuters) - Domestically produced biodiesel will cover 40 percent of Italy's obligatory sales of green fuel with the rest covered by cheaper imports, a top industry official said on Monday, signalling a fall in output.
Italian biodiesel makers, who use mostly imported raw materials including palm oil and rapeseed, have been hit hard this year by inflows of cheap imported fuel which sometimes costs less than their raw materials, industry experts have said.

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