Thursday, February 2, 2012

20120202 1018 Soy Oil & Palm Oil Related News.

Soybeans (Source CME)
US soybean futures rallied, continuing to retrace losses from earlier in the week. Commodity friendly external market influences and confirmation of fresh export business with China fueled the price gains, analysts say. Buyers were also encouraged by continued uncertainty about South American crop potential, as private forecasters continue to lower their crop estimates, analysts say. Soybeans remain firmly planted within a month long wide trading range, with traders awaiting lasting fundamental direction. CBOT March soy ended up 16 1/4c at $12.15 1/4 a bushel.

Soybean Meal/Oil (Source CME)
Soy product futures finished higher, rising in step with advances in soybeans. The combination of a weaker US dollar, fresh Chinese demand for soybeans and lingering uncertainty about South American crop damage, buoyed soymeal and soyoil futures, analysts say. CBOT March soymeal ended up $3.00 at $322.30/short ton, and March soyoil finished up 0.31c to 51.18 cents/pound.

China To Add More Than 12 Mln Tons Soybean Crushing Capacity In 2012 (Source CME)
China, the world's largest soybean importer and consumer, will likely add more than 12 million metric tons of soybean crushing capacity this year, the state-backed China National Grain & Oils Information Center said.  The nation's rapeseed oil crushing capacity is expected to increase by 3 million tons in 2012, it said in an email. China added more than 15 million tons of oilseed crushing capacity in 2011, marking the biggest expansion since 2004, the CNGOIC said. China's oilseed crushing sector is facing serious overcapacity.

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