Friday, September 9, 2011

20110909 1025 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures stumbled, pressured by traders reducing risk ahead of Monday's update on crop production from government forecasters. Investors were nervous about the buildup of long positions in the market in the face of an uncertain crop size and sluggish export demand, says Sterling Smith, analyst with brokerage Country Hedging. A rising US dollar also spurred on losses. A firmer USD makes US farm products less attractive to foreign buyers, and high prices are already showing signs of curbing demand, analysts add. CBOT Nov soy dropped 7 1/2c to $14.18 1/4.

Soybean Meal/Oil (Source: CME)
Soy product futures backpedaled in unison with soybeans, succumbing to profit taking from prior gains as traders gear up for Monday's outlooks for US soybean production. The uncertainty of soy supplies in 2012 are keeping traders on edge, limiting their willingness to take on risk, particularly with a firmer US dollar helping to limit export demand, analysts say. CBOT Dec soymeal dropped 0.5% to $372.10/short ton; Dec soyoil end down 0.6% at 58.33c/lb.

Palm oil up as discount to soyoil deepens
KUALA LUMPUR, Sept 8 (Reuters) - Malaysian palm oil futures extended gains for a second day, as the tropical oil's discount to competing soyoil has widened due to dry weather curbing U.S soybean yields.  
"The market driving support purely from the fact that crude palm oil is at a $220 discount to soyoil," said a trader with a foreign commodities brokerage. "That spells an opportunity for palm oil to grab some share as stocks are still ample despite the a recent draw down."

China 2011/12 soy imports seen higher - Chinatex
SHANGHAI, Sept 8 (Reuters) - China is expected to import 58 million tonnes of soybeans in  2011/12 (October-September), supported by expectations of a recovery in domestic pig production, according to estimates from a senior industry official with a state-owned trading house.
Guo Feng, deputy general manager of Chinatex Grains and Oils Import and Export Co, said imports in the marketing year could even hit 60 million tonnes if increases in pig production exceed expectations.

Castor seed area rises 62 pct in key Indian state
AHMEDABAD, India, Sept 7 (Reuters) - Negligible rainfall in June and a price rally have prompted farmers to raise area under castor seed in Gujarat, India's top producer, by about 62 percent in 2011/12, data with the state farm department showed.
Castor seed is normally sown in July and August in the western state and requires less water than pulses and groundnut, the other main summer-sown crops.

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