Soy Oil chart reading : upside biased with possible pullback correction.
ITS CPO export down 21.5% to 277,698 tonnes for the period of 1~10 Apr 2011.
SGS CPO export down 8% to 327,062 tonnes for the period of 1~10 Apr 2011.
MPOB Official Data for the month of Mar 2011 vs Feb 2011
Export up 10.8%
Stock up 8.95%
Output up 29.4%
Soybeans (Source: CME)
U.S. soybeans rally, managing to shake off the effects of bearish government crop data on tight supply outlooks. Futures garner strength from traders unwinding long corn/short soybean spreads made after March 1 inventory reports, with weakness in U.S. dollar and surging crude oil futures attracting investor buying, says John Kleist of ebottrading.com. A firmer cash basis in Brazil provides further strength, but fails to challenge recent highs as South American supplies are poised to relieve the strain on tight U.S. supplies, Kleist says. CBOT May soy ends 28 3/4c or 2.1% higher at $13.92 1/4.
Soybean Meal/Oil (Source: CME)
Soy product futures soared Friday, with soyoil futures leaping to an 8-week high on spillover support from crude oil futures. The surge in crude oil above the $112 a barrel dragged soyoil futures to its high, analysts said. Crude oil influences soyoil due to their use in making renewable fuels. Soymeal followed soybeans higher, in a recovery from recent declines. CBOT May soyoil finished up 1.45c or 2.5% at 59.77 cents per pound, and May soymeal settled $6.30 or 1.8% higher at $357.20 per short ton.
China Extends Cooking Oil Price Caps; CPI Fears - Wilmar (Source: CME)
Chinese government officials have asked Singapore-based agribusiness giant Wilmar International Ltd. to hold off increasing prices of cooking oil, a Wilmar spokesman said. The policy, which also affects Chinese producers of the household essential including Cofco Ltd. and Chinatex Corp., effectively extends a price cap first imposed in November that the companies at the time had believed would expire around March. The government's move is a sign that Beijing is ramping up efforts to check soaring inflation that has fanned widespread public discontent, even as economists widely anticipate March inflation to top two-year-high levels reached in February. "The Chinese government has requested that we hold off on price increases," a spokesman for Wilmar, which operates in China as Yihai Kerry Group, said. Still, Beijing has also indicated it is mindful of the need to accommodate companies' thinning margins even as it seeks to contain sharply rising food inflation.
The government has been working with affected companies and has tried to accommodate producers' needs, said the spokesman, who didn't wish to be named. In the past, Beijing has released subsidized edible oil to refiners to help producers tide over such periods. Last week, Beijing asked major downstream food producers including instant noodles maker Tingyi (Cayman Islands) Holding Corp. and snack producer Want Want China Holdings Ltd. to hold off on similar price hikes. Anglo-Dutch consumer goods producer Unilever PLC had also planned to raise the prices of detergent and shampoo late last week, but a company spokesman said it was dissuaded by officials from the National Development & Reform Commission, China's economic planning agency. "We were asked, and we chose to comply," the spokesman said. In December, the commission requested major flour producers put a lid on prices. The duration of the caps isn't clear.
Company executives generally believe they would have to reapply to the commission for permission to raise prices. China's price caps are an informal reintroduction of a controversial year-long policy that went into effect in January 2008. The policy was broadly applied, hitting pork, cooking oil, eggs, flour and liquefied petroleum gas among other products. Companies were instructed on how and when to report price increases. The policy also allowed the government to reset prices as it deemed necessary. Cofco and Chinatex officials couldn't be reached Friday. The move will almost certainly hurt corporate margins. In December, as soyoil prices rose 13% from October levels, crushers were still able to rely on a margin of around $20-$50 a metric ton.
Global soybean prices, which feed into imports that are largely used to manufacture cooking oil, have surged since, reaching two-and-a-half-year highs this year, with upward pressure still present as U.S. soybean acreage appears set to decline in the current crop year.
Argentina Soy Harvest Pace Increases (Source: CME)
The pace of Argentina's soy harvest picked up over the last week, with conditions mixed, but surprisingly good in many areas, the Buenos Aires Cereals Exchange said in its weekly crop report. To date, over 14% of the soy crop has been harvested, with final production estimated at 48.8 million metric tons, according to the exchange. Argentina is the world's third largest soybean exporter and leads soymeal and soyoil exports. Meanwhile, the corn harvest has slowed, as farmer focus on bringing in soybeans and due to early planting delays due to drought, the exchange said. The harvest pace is about 20 percentage points behind what it was at this point last year, according to the exchange. About 30% of the corn crop has been harvested so far, with production seen at 19.5 million tons. Argentina is the world's second largest corn exporter. The exchange also slightly raised its forecast for sunflower seed production to 3.4 million tons from 3.3 million, with almost 96% of the crop harvested so far.
The country ranks among the world's leading sunflower seed oil exporters.
Rosy demand outlook boosts palm oil futures
KUALA LUMPUR, April 8 (Reuters) - Malaysian palm oil futures rose 0.7 percent on hopes of higher exports this month as consumers shift to the tropical oil since competing soyoil prices rise in tandem with soaring grains markets. "Technically, the market is trading sideways. So long as the spread is wide we won't see drastic movement," said another trader in Kuala Lumpur.
Robust demand lifts India 2010/11 oilmeal exports
NEW DELHI, April 8 (Reuters) - India's oilmeal exports in 2010/11 rose by more than half to 5.1 million tonnes as higher output helped meet growing demand from traditional buyers such as Japan and Vietnam where improving economic conditions led to more purchases.
Soymeal exports rose in the year despite rejection of some cargoes by Vietnam in the last few weeks over quality issues. Vietnam has since started taking deliveries.
Dry weather speeds Argentine soy harvest-exchange
BUENOS AIRES, April 7 (Reuters) - The harvesting of Argentina's 2010/11 soy crop advanced quickly over the last week thanks to the lack of heavy rains, the Buenos Aires Grains Exchange said in a weekly report issued on Thursday.
Dry conditions facilitated a faster harvest in the South American country, the world's No. 1 soymeal and soyoil exporter as well as its third-biggest soybean supplier.
China's Soybean Imports Soar 51% on Month, Fall 13% on Year on Low Margins
Soybean imports by China, the world’s biggest, climbed 51 percent in March from the lowest level in more than two years. Shipments fell 13 percent from the same month last year. Inbound movements were 3.51 million metric tons compared with 2.32 million tons in February and 4.01 million tons in March last year, according to customs data released today. The February total was the least since October 2008.
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