Thursday, September 22, 2011

20110922 0927 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures stumble to 6-week lows, fueled by investor selling amid the absence of fresh demand to buoy prices. The combination of seasonal harvest pressure and fears of slumping demand amid a tenuous global economy attracted sellers to the market, says Chad Henderson at Prime Ag Consultants. Traders were also reducing risk exposure ahead of the announcement of Fed action after the FOMC meeting. CBOT November soy dropped 17 1/2c to $13.20 1/2 a bushel.

Soybean Meal/Oil (Source: CME)
Soy-product futures fall in unison with soybeans, with soymeal like beans sliding to a 6-week lows. Meanwhile, traders unwinding long soymeal/short soyoil positions limited losses in soyoil. CBOT December soymeal dropped 1.7% to $344.20/short ton and December soyoil fell 0.5% to 55.34c/pound.

India Minister Favors Higher Import Tax On Refined Edible Oil (Source: CME)
India's food ministry is backing local refiners' demand for a higher import tax on refined edible oil to prevent cheap foreign supplies from flooding the market, and the food minister said he has already taken up the matter with the finance minister. The refiners are particularly worried about supplies from Indonesia, the biggest palm oil producer and exporter that recently cut its export tax on refined, bleached and deodorized palm olein in bulk to 8% from 15%. This has made importing palm olein cheaper than sourcing crude palm oil from abroad and processing it locally. India has an edible oil refining capacity of 20 million metric tons annually and it imports almost 80% of its edible oil requirement as crude oil. Higher imports of refined products will hurt local refiners.
"We are cautious and apprehensive about cheap imports," Food Minister K.V. Thomas told Dow Jones Newswires, two days ahead of an edible oil conference in Mumbai. "I have discussed it with the finance minister as the industry's demand for higher import duty is genuine." India, the world's top edible oil importer, levies a 7.5% tax on refined edible oils, and imports palm oil mostly from Indonesia and Malaysia. Thomas said he also favored the industry's demand for increasing the base value on which import tax is calculated. The base value is currently $484 a ton for refined palm oil, much lower than the market price of about $1,200 a ton. The government will aim to increase the production of oilseeds and the local refining capacity to help the country cut down on imports of refined oil, the minister said.
India's summer-sown oilseed production is set to rise in 2011-12 to 20.89 million tons from 20.84 million tons the previous year, but its edible oil imports is unlikely to fall because of growing consumption. India is expected to import 8.2 million-8.5 million tons this marketing year through October. The minister said his ministry isn't averse to increasing the curbs on oilmeal exports to improve local availability of cattle feed, following complaints by the local dairy and poultry sector. India's animal husbandry department has asked for raising the export tax on oilmeals to 20% from 10%. Thomas, however, ruled out the dairy industry's demand for banning oilmeal exports to help cut down costs for the sector, saying "we are against any ban on oilmeal exports."

Palm oil retreats on bleak global economic outlook
KUALA LUMPUR, Sept 21 (Reuters) - Malaysian palm oil fell as investors grew wary over attempts to resolve Europe's debt crisis and shore up the U.S. economy against a slide back into recession -- factors that can stall global commodity demand.
"When palm oil goes below 3,000 ringgit, there is no follow-through selling. When it goes above 3,000 ringgit there is no follow through buying. The keyword is caution," said a trader with a foreign brokerage in Malaysia.

Cargill to rebuild, expand N.Dakota oilseed plant
Sept 20 (Reuters) - U.S. agribusiness giant Cargill Inc  said on Tuesday it is planning a $50 million-plus project to rebuild and expand its 30-year-old oilseed processing plant in West Fargo, North Dakota.
Construction is set to begin this fall with completion  expected by the 2013 U.S. harvest, Cargill said.

Indian vegetable oils to resume rise -Oil World
HAMBURG, Sept 20 (Reuters) - India will import more vegetable oils in the new 2011/12 season, following an import drop in 2010/11, as domestic output cannot meet booming consumption, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
India's total vegetable oil imports in October 2011/September 2012 are likely to rise by 0.2-0.3 million tonnes on the year to 8.86 million tonnes after falling by 0.5 million tonnes in 2010/11, Oil World said.

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