Wednesday, September 14, 2011

20110914 1022 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures settled lower, continuing to react to higher-than-expected government crop estimates reported Monday, along with seasonal pressure as the autumn harvest approaches. Traders reduced risk exposure in the absence of fresh export demand to offset the higher forecasts. Soybeans held up well in the face of sharp declines in corn and wheat futures as concerns about the potential for crop damage from a frost in the northern Midwest this week limited losses. CBOT Nov soybeans dropped 4 1/4c to $13.91 3/4 a bushel.

Soybean Meal/Oil (Source: CME)
Products ended lower, with crop estimates seen reducing the risk of tight supplies for crushing. December soyoil fell 0.2% to 57.63c/pound and December soymeal dropped 0.8% to $362.70/short ton.

Palm oil retreats on better U.S soy outlook
KUALA LUMPUR, Sept 13 (Reuters) - Malaysian palm oil futures retreated from near one-month highs hit the previous day as a better-than-expected production outlook for the U.S. soy crop signalled improving vegetable oil supplies.
"The question is whether palm oil futures will drop and stay below 3,000 ringgit for an extended time period," said a trader with a foreign commodities brokerage.

Frost may harm some of U.S. soybean crop in northern Midwest
CHICAGO, Sept 12 (Reuters) - Frost late this week in the northern U.S. Midwest may harm some of the soybean crop, but harm to the corn crop is less likely because it is more mature, an agricultural meteorologist said Monday.
"There may be some harm to soybeans but probably not corn, it's more of an issue for soybeans," said Kyle Tapley, meteorologist for MDA EarthSat Weather.

India's August vegoil imports likely to fall on month
NEW DELHI, Sept 12 (Reuters) - Capitalising on an export tax cut by Indonesia, India is likely to have bought more palm oil in August at the cost of soyoil imports which may have halved compared to the previous month, a Reuters survey showed on Monday.
Indonesia reduced export tax cap on palmolein products (downstream) to 13 percent from 25 percent in August, making import of refined products cheaper and crude products costlier for countries like India.

Crude palm oil (CPO) prices are likely to remain at  RM3,100 per tonne till year-end on  expectations of an increase in palm oil production  and a healthy growth in demand, said IOI group ED Datuk Lee Yeow Chor.  
• “New emerging countries like Pakistan and India are importing more Malaysian palm oil  and our revenue target this year would be achievable looking at trends in the last four  months,” he added. He said demand was coming from African countries, while China  remained the largest CPO consuming country.  
• Lee said the RM200 per tonne export discount versus soyoil was quite high, benefiting  the latter.  
• He also said although Indonesia’s move to impose a  higher export tax for CPO,  compared with processed palm oil products, might encourage development in its  downstream palm oil industry, the disparity of its export tax might hurt its smallholders.  (Starbiz)    

Bursa Malaysia Derivatives' (BMD)  crude palm oil  futures contracts (FCPO) stood at a  record 4,072,384 contracts as of midday close today, surpassing 4,064,361 contracts  traded in 2010. "This is the highest ever number of contracts traded annually since FCPO  contracts started trading in 1980," Bursa Malaysia said. Its CEO/chairman, Datuk Tajudin  Atan, said the record-breaking achievement would strengthen the position of the FCPO  contracts as the global pricing benchmark for palm oil and palm oil-based products. "The  uncertainty in global financial markets has resulted in a shift of funds from equities to other  asset classes and this trend is expected to continue over the next few months," he added.  (Starbiz)

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