Wednesday, November 23, 2011

20111123 0956 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures ended higher, able to stabilize after previous declines on recent export demand and the absence of external financial pressure. Soybeans were able to shake off the mixed signals from outside markets, buoyed by outlooks for strong demand at current price levels and seasonal buying, analysts say. Soybeans have a seasonal tendency to bounce after Thanksgiving as harvest concludes, and some traders are looking to take advantage of lower prices before any rally, say Tim Hannagan, analyst at PFG Best. CBOT Jan soy ended up 5c at $11.53/bushel.

Soybean Meal/Oil (Source: CME)
US soy product futures climbed, rebounding from prior declines in unison with soybeans. Oversold conditions and spillover support from higher crude oil futures added to soyoil's recover, with soymeal rising in step with the rest of the complex, analysts say. CBOT Dec soymeal ended up $2.40 at $292.00/short ton; Dec soyoil finished up 0.89c at 50.78c/lb.

Food Majors Buying More Sustainable Palm Oil (Source: CME)
Major food companies have increased purchases of sustainable palm oil since 2009, following their pledge to source only environment-friendly cooking oil, but figures show that the commitments aren't translating fast enough into increased usage, environmental group WWF said. Availability of certified sustainable palm oil has grown significantly since WWF's first scorecard in 2009, and now stands at 5 million metric tons annually, around 10% of global palm oil output. WWF said the scorecard assessed members and non-members of the Roundtable on Sustainable Palm Oil, and showed that 87 of 132 companies surveyed have committed to source 100% RSPO-certified palm oil by 2015 or earlier, a move that could spur planters to be certified sustainable oil producers. But sale of the environment-friendly oil is only half of current production. The scenario in 2011 "is not so different from the situation we observed in 2009," WWF said in the scorecard.
"It is clear that some manufacturers and retailers have fallen behind on their commitments to 100% sustainable palm oil, while others haven't even started at all," Adam Harrison, senior policy officer at WWF UK, said. "2015 is just around the corner. Companies need to move faster, only then can we ensure the momentum gained by the RSPO is not lost and avoid the negative impacts of irresponsible oil palm plantations on forests, wildlife and communities," said Harrison, who is also WWF's representative on the RSPO executive board. WWF issued the scorecard on the sidelines of RSPO's annual conference in Sabah, the northern region of the island of Borneo. WWF, along with several palm oil producers and consumer firms, helped set up the RSPO in 2004 to promote and develop environment-friendly practices for the palm oil industry following criticism that plantation firms were cutting down forests to cultivate the crop.
Companies that scored well include those dealing in very large volumes of palm oil, such as Nestle and Unilever, Ikea and United Biscuits. WWF also said there's a lack of transparency over the amount of palm oil that companies use. "Unless there is greater transparency, oil palm growers will remain unwilling to commit to certification," Harrison said. "If we want growers to act responsibly, buyers need to show what their future demand for certified sustainable palm oil is going to be," he said.

Palm drops to one-week low on debt woes, rains support
SINGAPORE, Nov 22 (Reuters) - Malaysian palm oil futures fell to their lowest in more than a week on concerns huge debt burdens in the U.S. and Europe may prove to be unmanageable and stall growth and commodity demand.
"Technically the market should do some correction today, after seeing the downward movement yesterday. The lower CBOT also played a part," said a trader with a foreign commodities brokerage in Kuala Lumpur.

Brazil soy planting surges under favorable weather
SAO PAULO, Nov 21 (Reuters) - The planting of Brazil's soybean crop is ahead of schedule after surging over the past week, as producers race to get their crops sown as early as possible this year, grain analysts Celeres said on Monday.
Ample rains since late September in most soy producing regions have allowed producers to sow an early crop this year, unlike last season when spring rains were delayed by a month and a half due to the effects of La Nina.

Palm Oil Declines for Second Day as Investors Seek Safer Assets
Nov. 22 (Bloomberg) -- Palm oil dropped for a second day as investors switched to safer assets amid deepening concerns that the debt problems in the U.S. and Europe may slow global economic growth, hurting demand for food and fuel. The February-delivery contract dropped as much as 1.4 percent to 3,145 ringgit ($990) a metric ton on the Malaysia Derivatives Exchange before trading at 3,182 ringgit at 4:15 p.m. in Kuala Lumpur. The U.S. deficit-cutting congressional supercommittee failed to reach an agreement, setting the stage for automatic cuts in 2013 and fueling concern that economic-stimulus measures that are set to expire will not be renewed. Germany’s Finance Ministry said the country’s expansion has gotten “noticeably slower,” while Moody’s Investors Service said France’s rising financing costs are increasing the nation’s fiscal challenges.    
Investors “are staying out until they can see more clearly,” Abah Ofon, an agricultural analyst at Standard Chartered Bank in Singapore, said by phone today. “There are a lot of risks out there.” As the yearend nears some investors are reducing their holdings of riskier assets including agricultural commodities such as palm oil to limit potential losses, Ofon said. Palm oil may resume its rally early next year as the market begins to focus on potential threats to production, including the impact of the La Nina weather pattern on yields, said Ofon, who forecasts prices may average 3,200 ringgit in the first quarter and 3,400 ringgit in the second quarter.

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