Wednesday, October 12, 2011

20111012 0942 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures rallied to highest point in two weeks as traders covered short positions ahead of tomorrow's USDA crop reports. Traders are cautious of a surprise in government crop forecasts, particularly after experiencing steep losses during the past month, analysts say. Firm cash basis levels, with farmers storing grain in hopes of higher prices; rising end-user and importer demand helped buoy prices. Spillover support from corn prices climbing the maximum daily amount attracted buying across the entire grain sector. CBOT Nov soy ended up 58c (4.9%) at $12.35 1/2/bushel.

Soybean Meal/Oil (Source: CME)
CBOT Dec soymeal ended up $12.10 higher at $320.60/short ton; Dec soyoil up 2.07c at 52.18c/lb.

US CASH GRAIN: Soy Basis Firms On Demand, Slow Farmer Sales (Source: CME)
U.S. cash soybean basis levels are rising, fueled by limited farmer selling and increased end-user demand. Industry analysts say buyers continue to push prices as farmers choose to store early harvested supplies, awaiting higher prices after futures experienced steep declines in the past month. Solid commercial grain buying is supporting prices, producing dramatic firming in domestic cash soybean bids, according to analysts at AgResource Company in Chicago. "Interior Midwest cash soybean basis bids are up 20-25 cents in just the past few days as processors and exporters compete for limited harvest supplies," AgResource Company reported in a market note. Many farmers have adequate space to store grain and soybeans this fall, and are not feeling pressured to sell much grain out of the field. Given the combination of adequate storage and previous sales at elevated values, marketing any additional inventory at this time is not a concern for farmers, a cash-connected CBOT broker said.
Meanwhile, signs of building export demand are aiding the basis appreciation, as talk of fresh demand from China is increasing the need to move fresh harvest from Midwest to ports at the Louisiana Gulf. The vessel lineup for soybeans at ports for shipment to China now exceeds 1.2 million metric tons, with new sales to China rumored to be concluded in recent days, AgResource added in a market note. U.S. Department of Agriculture on Tuesday reported 23.387 million bushels of soybeans were inspected for export in the week ended Oct. 6, with 15.665 million bushels booked for China. Meanwhile, midday barge basis levels for October shipment of soybeans to the Louisiana Gulf ranged from 22 cents to 60 cents over November futures, up 5 cents from Monday, according to data from the USDA. The rise in barge basis is up 10 cents in the past week and up 26 cents in the past 2 weeks, according to the USDA. Basis is the difference between cash prices and futures market prices.
The corn basis is firm as well, especially true from ethanol plants who are trying to capture as much of the current profit margin as possible. The premiums are all for immediate shipment. Processors and ethanol plants in the eastern Midwest continue to report price premiums for corn supplies. The basis ranged from 10 cents under December futures to 55 cents over December futures, according to data from USDA.

Palm futures up on strong exports; investors eye U.S. soy stocks
SINGAPORE, Oct 11 (Reuters) - Malaysian palm oil futures edged up 0.4 percent on strong exports, but gains were limited by caution ahead of a key U.S. report this week that could show a rise in soybean stocks, which could mean larger supplies of a competing edible oil.
"The market is all friendlier on the exports data. Also, the U.S Department of Agriculture report will set the tone for the rest of the week," said a Malaysian trader in Kuala Lumpur.

Brazil soy planting spreads with early rains
SAO PAULO, Oct 10 (Reuters) - Planting has gained early traction across the grain belt in Brazil, the world's No. 2 soybean grower, after weekend rains marked the end of the dry season, crop analysts said on Monday.
The return of disruptive La Nina weather conditions looms, however, which could spell drier weather over Brazil's southern grain growing states, keeping Brazil from matching its record soy output and yields of last season, forecaster Somar said.

Brazil soybean output seen down in 2011/12-attache
Oct 10 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Brazil:
"Post now forecasts soybean production in 2011/12 at 75 million tonnes, a slight decrease from the record 75.3 million tonnes produced in 2010/11. Post forecasts a record 25 million hectares will be planted to soybeans in 2011/12, a 3 percent increase over 2010/11 planted area of 24.2 million hectares.

Rain reaches Brazil's Mato Grosso soy planting
SAO PAULO, Oct 10 (Reuters) - A second round of rains in October fell on Brazil's No. 1 soybean producing state of Mato Grosso over the weekend and more rain is expected toward the end of the week, local forecasters Somar said Monday.
Although showers are still hitting some regions of the state and not others, a large swath of the growing areas is getting enough moisture to start planting the new crop. -

India Sept vegoil imports may rise on lower prices
NEW DELHI, Oct 11 (Reuters) - India probably imported more palm oils in September as traders built stocks on lower global prices to meet festive demand, a Reuters survey showed on Tuesday.
Importing crude palm, which forms the bulk of Indian vegoil purchases, has become costlier from this month after Indonesia, the world's top palm oil producer, tweaked its tax structure last month that has made the refined variant less expensive.

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