Monday, December 20, 2010

20101220 1057 Soy Oil & Palm Oil Related News.

ITS CPO export down 26.3% to 776,910 tonnes for the period of 1~20 Dec 2010.
SGS CPO export down 27.3% to 799,071 tonnes for the period of 1~20 Dec 2010.  

Soy product futures ended higher, with soymeal taking a leadership role in the advances. The strength in soymeal prices was a pure weather play, as cold, icy conditions force feeders to increase protein intact in livestock ward off freezing temperatures, said Jack Scoville analyst with Price Futures Group. Livestock generate internal warmth by eating increased amounts of corn and soymeal, Scoville said. Soyoil edged higher on outlooks for increased usage for biodiesel, but advances were limited by traders taking profits on long soyoil/short soymeal spreads, analysts said. CBOT January soyoil ended 0.06 cents or 0.1% higher at 54.13 cents per pound, and January soymeal traded $4.00 or 1.2% higher at $347.80 a short ton. (Source: CME)

World Food Markets Face Long-Term Price Rises-FAO (Source: CME)
World food markets face an unprecedented long-term rise in prices and may reach record peaks by the end of the year, a senior executive for the United Nation's Food and Agriculture Organization said. The FAO's food price index, which monitors the monthly change in international prices of a basket of commodities, climbed to within seven points of its June 2008 record high in November at 205 points, data released this week showed. A surge in food prices in 2007-8 caused widespread riots in many developing countries. Boosted by a surge across other commodities, such as oil, the spike was sharp but short-lived, with prices pulling back by the following season as the world economy tumbled and farmers increased grain plantings on a vast scale.
But Abdolreza Abbassian, Secretary of FAO's Intergovernmental Group on Foodgrains, said that while the rise in agricultural markets this year may not lead to a similar "food crisis," it may herald the beginning of a long-term increase in food costs after a century of deflation. "We have to see what December gives us but I would be very surprised if we don't see more rises," he said. "The firm prices of the sort that we're seeing today and its continuation is a departure from the past. Gradually we've been learning that food will not be as cheap as it has been." Most agricultural markets have seen bull runs this year as weather patterns damaged output from many key producing regions. Grain markets have soared to near record peaks while sugar futures have hit their highest point since the early 80s, and many observers predict further increases ahead.
For many soft commodities--cocoa, coffee and sugar--this year's increases have been accentuated by perilously low stock levels. Several deficit seasons in a row for sugar in particular have left global inventories even more run-down than in 2007-8, leaving markets vulnerable to supply shocks. Abbassian said many markets could face even higher and more volatile prices ahead. "Unlike the previous episode where we had high prices for 2007-8 which peaked and then came down very quickly, the likelihood of prices coming down in 2011-12 is almost non-existent," he said. "Almost all commodities are in a tight supply-demand situation and so we would need to see high production in all commodities, which is unlikely." And while most forecasters expect a significant increase in plantings next season (the International Grain Council recently predicted a 4% global rise in wheat acreage) he said that a rise in world production is not a given.
"So far I would say that on balance it looks like we will get bigger plantings," he said. "But whether we get good yields or bigger outputs is another question."

Palm at over 2-wk lows on weak demand outlook
KUALA LUMPUR, Dec 17 (Reuters) - Malaysian crude palm oil  futures dropped to a two-week low on Friday as market players  squared positions on worries over weak overseas demand ahead  of export data early next week.  "The market was down on long-liquidation on anticipation  that overseas demand for December 1-20 will fall further,"  said a trader with foreign brokerage in Kuala Lumpur. 

La Nina fuels price rally across commodities
SINGAPORE, Dec 17 (Reuters) - La Nina-driven weather from  South America to Australia and southern Asia will extend into  early next year, disrupting seasonal crop output and  supporting long bets on grains and soft commodities that have  gained sharply since the phenomenon began in mid 2010.
Normal seasonal output patterns for wheat, rubber, coffee,  soy and palm oil, among others, have been upended in these  countries and regions directly affected by La Nina, caused by  temperature changes in the Pacific Ocean and linked to  heavier-than-normal rains in the Australia and southern Asia,  and drier conditions in South America.

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