Monday, June 27, 2011

20110627 1311 Soy Oil & Palm Oil Related News.

Soy Oil chart reading : downside biased.

ITS CPO export up 17.3% to 1,252,780 tonnes for the period of 1~25 Jun 2011.
SGS CPO export up 15.1% to 1,270,888 tonnes for the period of 1~25 Jun 2011.

Soybeans (Source: CME)
US soy futures finished mostly lower, stumbling on favorable near-term crop weather, a firm US dollar and sagging demand. Market managed to stabilize despite drifting lower, finding strength after a steep break in prices, analysts said. Futures also drew support from traders' unwillingness to extract risk premium amid uncertainties of growing-season weather and acreage. However, with domestic and export demand slumping and corn prices sliding, buyers weren't willing to add risk exposure ahead of the weekend, analysts say. CBOT Nov soy dropped 0.6% to $13.09 1/4.

Soybean Meal/Oil (Source: CME)
Soy product futures were little changed, hovering in a range in unison with soybeans. The market lacked fresh news to provide guidance, leaving traders in a cautious mood, unwilling to take on added risk ahead of the weekend, analysts said. CBOT July soymeal finished down 0.2% at $339.90/short ton; Dec soyoil dropped 0.04% to 56.36 cents/pound.

Argentina Soy Export Tax Seen Surging Amid Steep Price Gains (Source: CME)
The Argentine government is expecting export taxes on soybeans and derivative products to jump to more than $8 billion this year, providing a revenue windfall to help balance high government spending in the run-up to presidential elections in October. Soybeans are Argentina's top crop and largest export product and carry a 35% export tax. The expected $8 billion in revenue is up sharply from the $6.3 billion in taxes on soybean, soyoil and soymeal exports collected last year, according to state news agency Telam, which cited a report from the agriculture ministry. A ministry spokesman didn't respond to a request for a copy of the report. Argentina is the world's third-largest soybean exporter and leads soymeal and soyoil shipments. The soy harvest is virtually complete, with production estimated at 49.6 million metric tons by the agriculture ministry. That is the second-largest crop on record.
Last season, farmers set the new high mark with 54.5 million tons, but now prices are up an average of 60% from a year ago, Telam said. In addition to boosting state coffers, that has provided a big boost to the farm sector and the rural economies. The total value of this season's soy crop is estimated at $24.6 billion, Telam said. Tax revenue has soared so far this year led by steep gains in sales taxes amid a consumer spending boom. May tax revenue hit a new record, climbing almost 30% on the year to 51 billion pesos ($12 billion).

Canada farmers plan record canola, more wheat area
June 23 (Reuters) - Canadian farmers may plant 17.7 percent more canola this year than the record area planted in 2010, while they expect to plant 11.9 percent more wheat in 2011, according to a Statistics Canada survey released on Thursday.   
Statscan surveyed farmers between March 24 and March 31 so the survey does not reflect the heavy rains and worsening flood conditions since then and likely overestimates plantings, traders and analysts said this week. Floods will leave 6 to 8 million acres unplanted -- the second highest fallow area due to excessive moisture in 50 years -- according to the Canadian Wheat Board.

Palm oil hits new 7-mth low as stocks grow
KUALA LUMPUR, June 24 (Reuters) - Malaysian palm oil dropped to a seven-month low on Friday as expectations that a higher output cycle will lift stocks offset broad gains in agriculture markets.
"We are looking for better export data next week to give some support but it will not be much," said a trader with a foreign commodities brokerage.

No comments: