Wednesday, January 12, 2011

20110112 0857 Soy Oil & Palm Oil Related News.

Soy product future backpedaled with soybeans, as traders reduced risk exposure ahead of Wednesday's crop reports. The threat of crop improving rains emerging in Argentina added to the declines, analysts said. Argentina is the world's leading exporter of soy products, and weather that may improve soybean availability for crushing in Argentina could reduce demand for U.S. supplies, analysts said. CBOT March soyoil ended 0.52c or 0.9% lower at 56.61 cents per pound, and March soymeal traded $7.70 or 2.1% lower at $362.90 a short ton.  (Source: CME)

Buyers Start To Switch To Certified Palm Oil; Sales Up In 2010 (Source: CME)
Sales of certified sustainable palm oil more than tripled last year, signaling growing consumer preference for environmentally friendly oil, recent data from the Roundtable on Sustainable Palm Oil showed. Sales of certified palm oil--meeting environmental sustainability standards in production processes--rose to around 1.62 million metric tons in 2010 from less than 500,000 tons in 2009. Production under the standards has reached 3.8 million tons annually, up 65% from a year earlier, as more planters in Southeast Asia comply with rules set by the industry group. Certified palm oil may account from more than half of all palm oil sales by 2015, as more companies are pledging to use only environmentally friendly palm oil, a Europe-based executive at a food company said. Last year, the Netherlands--Europe's major hub for the import and distribution of palm oil--said it would only buy certified palm oil by 2015.
Global palm oil consumption has reached close to 50 million tons a year. The oil is used widely in a wide range of consumer products ranging from processed foods like margarine and biscuits to lipsticks and soap. It is also used as a feedstock to produce biofuels. While palm oil is a highly efficient crop--yielding up to ten times more oil per hectare than oilseed crops including soybeans, rapeseed and sunflower--environmental groups have alleged that companies have been clearing irreplaceable rainforest and peat lands to plant palm oil trees and increase production. The RSPO was formed in response to these concerns as a multi-stakeholder group of planters.

Palm oil eases ahead of key USDA report
KUALA LUMPUR, Jan 11 (Reuters) - Malaysian crude palm oil  eased , ahead of a key U.S. Department of  Agriculture report that will likely trim the agency's forecast  for South American soy output due to a lingering dry spell.
"Palm oil is retracing a little but it could start  rallying in line with soyoil if the USDA shows a significant  drawdown in soy stocks and a weaker soy crop in Argentina,"  said a trader with a foreign commodities brokerage.Indonesia sees 2011 palm oil output at 22 mln T-industry

Indonesia sees 2011 palm oil output at 22 mln T-industry
JAKARTA, Jan 11 (Reuters) - Indonesia expects crude palm  oil output to increase by a marginal 1 million tonnes to 22  million this year, an official at the Indonesian Palm Oil  Association said on Tuesday.
An unusually long rainy season has wreaked havoc on most  of the country's plantation crops, tightening supply to global  markets and driving up palm oil prices to near three-year highs.

Brazil soy crop heads for near repeat of record
SAO PAULO, Jan 10 (Reuters) - Crop forecasters see a bumper soybean crop for Brazil again this year, with two of the latest independent estimates zeroing in on a harvest that is just shy of last year's record.
Despite dry weather that worried local producers early in the planting season, rains have since normalized and favored the new crop.

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