Thursday, March 31, 2011

20110331 0917 Soy Oil & Palm Oil Related News.

Soy Oil chart reading : side way range bound. 

ITS CPO export down 0.5% to 1,105,440 tonnes for the period of 1~31 Mar 2011.
SGS CPO export up 2.3% to 1,117,582 tonnes for the period of 1~31 Mar 2011.

Soybeans (Source: CME)
US soybean futures climb, buoyed by fears farmers anticipate planting less of the oilseed this spring due to an expansion of corn and cotton acres. Soybeans for May delivery ended up 10 1/2 cents, or 0.8%, to $13.72 a bushel at the CBOT. The general opinion in the market anticipates USDA will confirm private forecasts for a decline in soybean acres when it issues its planting estimates Thursday, says Rich Nelson, director of research at Allendale. The reduction in acres is problematic for users of the oilseed because large production is counted on to replenish tight US supplies in the face of burgeoning world demand.

Soybean Meal/Oil (Source: CME)
Soy product futures bounced up with soybean futures in anticipation of smaller U.S. planted soy acres forecasts from federal forecasters Thursday. CBOT May soyoil futures ended 0.30 cents or 0.5% higher at 57.32 cents a pound. Soymeal for May delivery climbed $1.90, or 0.5%, to $360.50 per short ton at the CBOT.

Japan Palm Oil Consumption Unaffected By Quake �Executive (Source: CME)
A leading exporter of palm oil-based products to Japan said the country's consumption of the cooking oil remains steady for now, despite the devastating earthquake and tsunami on March 11, but demand could potentially increase in the longer term. "Demand is still steady for now, although the short supply of electricity may prompt many Japanese companies to reduce production hours and disrupt supply chains," Tsutomu Usui, chief executive of Intercontinental Specialty Fats Sdn. Bhd. said. Looking beyond the potential near-term demand disruptions, however, palm oil may account for a larger share of Japan's edible oil consumption due to an increasing appetite for food that is free of transfats, Tsutomu said. Japan's dominant power supplier, Tokyo Electric Power Co., introduced rolling blackouts that may last until late April after it lost around 40% of its generating capacity.
The March 11 disaster disabled cooling systems at its Fukushima Daiichi power plant, shutting the plants down and triggering a nuclear crisis. ISF, 80%-owned by the Tokyo-listed Nisshin Oillio Group Ltd. and 20%-owned by edible oil firm Lam Soon, is a major producer of premium specialty food fats and oils, exporting around 40,000 tons to Japan last year. The country is the sixth-largest market for Malaysian palm oil, buying close to 600,000 metric tons last year. Japan consumes around 2.3 million-2.5 million tons of vegetable oils include soyoil, rapeseed oil and palm oil. "The future of palm oil is very bright (in Japan). It is still the cheapest oil available and the move by food manufacturers to remove transfats will boost imports," he said. Seven & I Holdings Co., a major Japanese retail conglomerate, decided in December to stop selling food products containing transfats "as much as possible and hoped to eliminate them altogether from the shelves," Kyodo News reported, citing company sources.
The group, which controls Seven-Eleven convenience stores, Ito-Yokado supermarkets, Sogo and Seibu department stores, joined other major companies such as McDonald's Holdings Co. (Japan) Ltd. to reduce offerings of food items containing transfats. The move came after Japan's Consumer Affairs Agency asked food manufacturers to voluntarily label the transfat content of their product earlier this year. While CAA didn't impose a ban on products with transfats, Japanese food makers said transfats labeling may be considered mandatory in the longer term. Transfats are created in liquid vegetable oils that have been undergone a chemical process called partial hydrogenation. Palm oil, a key ingredient in consumer products ranging from instant noodles and cooking oils to margarine and ice cream, is an alternative to oils that have been treated to increase the shelf-life of food products, as it is naturally stable even at room temperatures.
Palm oil is higher in the saturated fats believed to contribute to various health problems than many rival vegetable oils, but transfats have been found to pose far greater risks to consumers' health. Now that regulators and consumer agencies have started to publicize the risks, palm oil is gaining an advantage over rival oils that have been partially hydrogenated to improve stability.

Palm up on smaller soyoil supply view; key data eyed
KUALA LUMPUR, March 30 (Reuters) - Malaysian palm oil futures rose 1.2 percent on Wednesday on market views for a smaller
U.S. soy acreage this year that could lead to less competing soyoil and kick in more demand for the tropical oil.  "Local
sentiment is getting driven by overseas markets. The planting of soybeans is very important to palm oil market," said a
trader with foreign brokerage in Kuala Lumpur.

Brazil soy to shrug off flood losses, hit record
SAO PAULO, March 29 (Reuters) - Brazil looks set to turn out a record soy crop in the 2010/11 season thanks to higher yields
and despite the loss of some produce to floods in the center western soy belt, forecaster Agroconsult said on Tuesday.
The soy crop, now being harvested, should produce around 72.7 million tonnes, the local consultancy said, raising its
previous estimate of 72 million tonnes in February. It also estimated corn output would reach 34.8 million tonnes.

China's 2010/11 soybean imports to surge-Oil World
HAMBURG, March 29 (Reuters) - China's October 2010/September 2011 soybean imports are likely to rise by 5.5 million tonnes on
the year to 55.8 million as its economic growth fuels demand, Hamburg-based oilseeds analysts Oil World said on Tuesday.
This means China will account for 58 percent of forecast 2010/11 world soybean imports, up from 57 percent in 2009/10 and
only 41 percent in 2006/07, Oil World said.

Brazilian soy crop forecasts may be cut- Oil World
HAMBURG, March 29 (Reuters) - Current forecasts for Brazil's 2011 soybean crop could be cut by up to 1 million tonnes if rain
continues there during the next two weeks, Hamburg-based oilseeds analysts Oil World said on Tuesday.
Repeated rain has fallen on Brazilian soybeans at a highly vulnerable time just as they are being harvested, causing intense
concern about crop damage in the world's No. 2 soybean producer.

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