Friday, October 21, 2011

20111021 0940 Soy Oil & Palm Oil Related News.

Reuters: Indonesia sets crude palm oil export tax for Nov 2011 @ 15%, down from Oct 2011 16.5%.


Reuters : Malaysia, Indonesia agree to review crude palm oil export tax for "mutual benefit" - Malaysia government source. 


Reuters : Malaysia exploring options that include cutting crude palm oil export tax to be on par with Indonesia. - Malaysia industry source. 


Soybeans (Source: CME)
US soybean futures close unchanging, ending a three-day slide. The market recovered from sharp losses earlier in the session as broad-based buying emerged, paring losses in the soy market and pushing grain futures higher, analysts say. Soybeans were due for a recovery after dropping 3.5% in the first three days of the week, they add. Still, market participants remain jittery about demand after weekly export sales fell short of expectations. CBOT November soybeans finish flat at $12.25/bushel.

Soybean Meal/Oil (Source: CME)
Soymeal futures close higher on stronger export demand. USDA reports sales of 348,900 tons for the week ended Oct. 13, up from 221,600 tons the previous week. Mexico was the biggest buyer, snapping up 169,000 tons. The strengthening US soymeal sales pace will help boost the US soy crush rate, say analysts at AgResource. CBOT December soymeal rises $1 to $320.30 per short ton. Yet, soyoil slips slightly, with the December contract dropping 0.09c to 51.39c/pound.

Argentina Soy Area Seen 18.6M Hectares Vs 18.5M Last Season-Exchange (Source: CME)
Argentina's farmers are set to plant 18.6 million hectares with soybeans in the upcoming 2011-12 season, little changed from a year earlier, the Buenos Aires Cereals Exchange said in its weekly crop report. Farmers are expected to shift some fields to corn at the expense of soybeans in the central farm belt, while more soybeans will be planted in newly cleared fields in the north of the country and other marginal areas, Buenos Aires Cereals Exchange analyst Esteban Copati said in an interview. Soy area could increase if corn prices drop or planting conditions are too dry for corn toward the end of the year, leading farmers to turn to soybeans, Copati said. Last season farmers planted 18.5 million hectares with soybeans, the nation's top crop, the exchange said. Argentina is the world's third largest soybean exporter, ranks second in corn, first in soymeal and soyoil, and is a leading exporter of wheat and sunflower seed oil.
Planting conditions are good after recent showers soaked Argentina's fields, but farmers are concerned that a developing La Nina weather system could bring drought this season as it did in 2008-09. Local specialists say this season is likely to be milder and that those fears are likely overblown. The pattern should be similar to the recently finished 2010-11 season that was also affected by La Nina, according to the Buenos Aires Cereals Exchange's chief climatologist, Eduardo Sierra. La Nina is seen bringing relatively wet conditions from October through the first half of November. A long dry stretch is expected from November through the first two weeks of January, when rain levels should return to normal and bring relief to crops. La Nina refers to cooling of the equatorial Pacific Ocean that usually brings dry weather to the farm belts of Argentina, Uruguay, Paraguay and the south of Brazil. El Nino is the opposite, with warming ocean temperatures and heavier-than-normal rainfall in those areas.
Meanwhile, Argentina's 2011-12 wheat crop is developing well after the soaking and production is expected to total at least 12.6 million tons, according to the exchange. Wheat production during the 2010-11 season totaled 15 million tons, according to the U.S. Department of Agriculture. Corn planting is also progressing well after the showers. So far, 42.8% of the 3.5 million hectares seen going to corn this season has been planted, down about 20 percentage points from the progress made at this point last year. Dry weather through September led many farmers to put off corn planting, Copati said. So far sunflower seed planting is 31% complete, with 1.86 million hectares expected by the exchange this season.

Palm oil drops as euro zone crisis festers
KUALA LUMPUR, Oct 20 (Reuters) - Malaysian palm oil futures dropped sharply on Thursday as investors' avoided risky assets on concerns that a key European leaders' summit may not reach a consensus on the debt crisis in the region.
"Palm oil's fundamentals are slightly bullish but that has been stamped out by the greater macro bear called the euro zone," said a trader with a foreign commodities brokerage.

Palm oil output at 300,000 T in 2011- Bakrie Sumatera
JAKARTA, Oct 20 (Reuters) - Palm oil output at Indonesia's Bakrie Sumatera  will rise by more than 35 percent this year to 300,000 tonnes, Ambono Janurianto, chief executive at the planter, said on Thursday.
Earlier this year, the Bakrie Group's agricultural unit  forecast 2011 output at 280,000 tonnes compared with 220,000/230,000 tonnes last year.

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