Thursday, December 23, 2010

20101223 0916 Soy Oil & Palm Oil Related News.

Soy product futures ended higher, with soyoil futures rallying to their highest levels since August 2008. Soyoil futures are buoyed by a bullish global oilseed picture, with falling palm oil production outlooks in Malaysia and Indonesia putting soyoil in a good demand position, said AgResource's Dan Basse. Soymeal lost value to soyoil in the crush spread amid greater demand for soyoil. CBOT Jan soyoil ended 0.41c or 0.7% higher at 55.97 cents per pound, and Jan soymeal traded $0.10 or 0.02% higher at $352.70 a short ton. (Source: CME)

Brazil's Rio Grande Do Sul Soy May Face March Drought - Somar (Source: CME)
The soy crop in the Brazilian state of Rio Grande do Sul, Brazil's third-largest producer of the oilseed, may face drought in March because of the La Nina weather phenomenon, according to private weather service Somar. The state, Brazil's southernmost, may have from 50 millimeters to 60 millimeters of rainfall in March, Celso Oliveira, a meteorologist at private weather service Somar told Dow Jones Newswires on Wednesday. "This is about half the normal rainfall for the month" in the state. Farmers in Rio Grande do Sul who planted their beans earlier may suffer less from drought in the state in March, according to Oliveria. The La Nina weather phenomenon, which typically brings weather that is drier than usual, affects each Brazilian state differently, Oliveira said. "We do not see a lot of risk for other areas in Brazil," he said, noting that other areas may suffer excessive rains.
"At the moment we are doing very well, though we had very dry weather in November," said David Brew, a broker at Basoja Corretora de Cereais in Rio Grande do Sul. Brazil, the world's second-largest soy producer after the United States, recently has finished planting the 2010-11 soy crop that will be harvested between January and May of next year. Brazil's 2010-11 soy crop is forecast to reach 68.6 million tons, the country's Ministry of Agriculture Conab unit announced earlier this month. Celeres, a Brazilian agricultural consultancy, forecast early this month that the 2010-11 Brazilian soy crop would reach 68.1 million tons.

Weather, inflation concerns lift palm oil to 1-week high
KUALA LUMPUR, Dec 22 (Reuters) - Malaysian crude palm oil  futures hit a one-week high as traders priced in  heavy rains cutting into this month's output.  "The palm oil market is getting stronger on weather and  inflation concerns, demand has been rather resilient in  December," said a trader with a foreign commodities brokerage.

China rapeseed acreage in 4 top areas down 20 pct -report
BEIJING, Dec 22 (Reuters) - Chinese farmers may have planted 20 percent less rapeseed in the country's top four growing provinces because of a lower return compared with wheat, according to a survey by several futures companies.
Acreage of the oilseed in certain areas in Hubei, the top producing area, could fall by more than 30 percent, said the report in the Futures Daily.

U.S. analyst cuts Argentine soy production forecast
CHICAGO, Dec 21 (Reuters) - Private U.S. crop analyst Michael Cordonnier said Tuesday he cut his forecast for 2010/11 Argentine soybean production due to hot and dry weather in key production areas of the No. 3 soybean exporter.
Cordonnier pegged the Argentine soy crop at 49 million tonnes, down from his previous estimate of 50 million.

Argentine soy-crushing workers start pay strike
BUENOS AIRES, Dec 21 (Reuters) - Workers at Argentine soy-crushing plants in the area around the main grains port of Rosario started an indefinite strike on Tuesday to press demands for a year-end bonus, a union leader said.
"The strike is due to the lack of answers we've got from the companies," Pablo Reguera, secretary general of the San Lorenzo soy crushing workers' union, told Reuters. Argentina is the world's top supplier of soyoil and soymeal.

Brazil soy planting now all but finished - Celeres
BRASILIA, Dec 21 (Reuters) - Planting of Brazil's 2010/11 (Sept/Aug) soybean crop is now complete in the top two soy states, but dry weather that slowed sowing this year could delay some of the harvest, grain analysts Celeres said.
In the past week, the total area planted rose to 97 percent. Though the largest soy grower, Mato Grosso, and No. 2 Parana were finished planting, Rio Grande do Sul lagged behind with 91 percent of the crop planted.

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