Tuesday, July 19, 2011

20110719 1020 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures end lower, under pressure from crop weather uncertainties and weakness from external financial markets. Weather forecasts limiting the length of time a crop threatening heat wave will linger in the Midwest encouraged traders to reduce risk premium in the market, analysts say. A stronger US dollar amid ongoing global economic fears added to lower theme. However, the uncertainty of a long growing season, with soybean crops still weeks away from its critical developing stage limited losses and helped trim early declines. CBOT Nov soy end down 3/4c at $13.86 1/4/bushel.

Soybean Meal/Oil (Source: CME)
Soy-product futures stumble in unison with soybean futures. Soymeal drift lower as less-threatening weather forecasts for soybeans reduced the risk of smaller soy-production potential, analysts say. Meanwhile, soyoil garnered additional pressure from stumbling crude oil futures. CBOT December soymeal ended down 0.4% at $364.60/short ton while soyoil dropped 0.8% to 57.82c/pound.

Canada's Legumex Walker Inc To Build US Canola Processor (Source: CME)
Western Canadian pulse-processing company Legumex Walker Inc. plans to build a canola-processing plant in the U.S., the company said in a press release. The facility is expected to be completed by late 2012 and be operational in 2013. The facility will be built in Warden, Wash., and will produce expeller-pressed canola oil and high-quality canola meal. The plant will be the first commercial-scale canola-crushing operation west of the Rocky Mountains should be well-positioned to supply the expanding demand for canola products on the west coast of the U.S. the press release said. "Canola-oil demand is growing world-wide, especially in the United States," said Dave Walker, chairman of Legumex Walker, in the release. "Adding canola oil and meal produced in Washington to our current pulse and special-crops product lines diversifies our company both from a product as well as a geographic perspective. This is a very attractive opportunity for us."
The canola-processing facility is being built and operated by Pacific Coast Canola, a Washington state company owned 8% by Legumex Walker and 15% by Glencore Grain Investment LLC. The plant is designed to process 1,100 metric tons of canola per day and has a design output capacity of 142,500 tons of canola oil and 227,000 tons of canola meal per year, the release said. "We're very excited about this project," said Joel Horn, Legumex Walker's president and chief executive, in the release. "We think this will be good for farmers in the Pacific Northwest by providing a local buyer for a new high-margin crop that can be easily added to their existing rotations; it's good for canola-oil and canola-meal buyers who will benefit from a local supplier with significantly lower transportation costs. And, it's good for local consumers." Industrial Construction Group Inc. of Portland, Ore. will build the plant under a guaranteed-maximum-price contract.
Crown Iron Works Co. in Roseville, Minn. will provide process engineering and equipment, the release said. The plant will be located on 52 acres in Warden, in the heart of a region that is ideal for canola production and well-served by rail and surface transportation routes, the release said.

Palm oil falls on overseas markets, high stocks
KUALA LUMPUR, July 18 (Reuters) - Malaysian palm oil futures inched down as weaker overseas soy complex weighed on market sentiment at the time when stocks are growing.
"The export data for the first half of this month didn't excite the market," said a trader in Kuala Lumpur, referring to the report on overseas demand for palm oil released last week.

India's vegoil imports to rise after 2010/11 dip
NEW DELHI, July 18 (Reuters) - Climbing demand from a growing and increasingly wealthy population and small increase in domestic production should mean India once again buys more vegetable oils next year, even though the world's biggest importer eased off this year.
Higher oilseed stocks have boosted local supplies in the year to October 2011 and rising global prices have curbed purchases, with imports down 9 percent in the first eight months.

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