ITS CPO export down 10.5% to 1,177,262 tonnes for the period of 1~29 Feb 2012.
SGS CPO export down 9.5% to 1,170,698 tonnes for the period of 1~29 Feb 2012.
Soybeans (Source: CME)
US soybean futures ended higher, continuing a trend of setting new near-term highs on declining South American crop forecasts and strong export demand. Soybeans rallied to fresh five-month highs, buoyed by trader's thoughts that a smaller Brazilian crop will spur additional export demand for US soybeans, analysts say. Backlog of supplies at Brazilian ports is encouraging importers, particularly China, to book US supplies for near-term needs. Additional support spurred by need to push soy prices in an effort to entice farmers to not plant more corn at the expense of soybeans, analysts add. CBOT May soybeans ended up 10c at $13.12 1/2/bushel.
Soybean Meal/Oil (Source: CME)
Soy product futures ended mixed, with soymeal rising to 5-month highs in unison with soybeans. Soymeal is following soy on the threat of smaller South American crops spurring fresh demand, analysts say. Soyoil stumbled, succumbing to weakness in crude oil and end-of-month profit-taking on oil/meal spreads. CBOT May soymeal ended up $5.70 to $349.30/short ton, while soyoil dropped 0.06c at 54.80 cents/pound.
Soybean Reserves Shrinking Most Since ’96 Amid Brazil Drought: Commodities (Source: Bloomberg)
Global reserves of soybeans are shrinking the most in 16 years as demand for food, feed and fuel rises, creating the biggest-ever exports for U.S. farmers. Inventories (US38ESWR) at the start of the next season on Oct. 1 will be 20 percent lower than a year earlier, Jefferies Bache LLC predicts. Prices that rose 8.7 percent since Dec. 30 will gain another 6.7 percent to $14 a bushel by June, the New York-based commodities trader estimates. China signed deals in the week ended Feb. 17 to buy 13.4 million metric tons from the U.S., about what its own farmers grow in a year. The U.S. Department of Agriculture anticipates record global exports in 2012. The oilseed’s gains contrast with outlooks for wheat and corn, with the United Nations forecasting record supplies of cereals this year in response to prices that more than doubled since 2005.
Soybean futures in Chicago fell to a 14-month low in December, spurring U.S. farmers, the world’s top growers, to consider switching more land to grains just as drought curbed harvests in South America, the largest producing region. “Tight supplies will continue until the end of next year,” said Dan Cekander, the director of grain research at Newedge USA LLC, the biggest broker on the Chicago Board of Trade, where contracts for about 24.4 million tons of soybeans traded daily last year. “The smaller crop in South America means China will buy record quantities of U.S. soybeans.”
Soybeans Climb to Highest in Five Months as Rains Come Too Late for Brazil (Source: Bloomberg)
Soybeans advanced to the highest level in more than five months after rainfall in Brazil, poised to be the largest shipper, came too late to aid parched crops and global stockpiles may shrink the most in 16 years. Soybean and corn-growing areas in Brazil will get rain this week, slowing the harvest, forecaster Somar Meteorologia said yesterday. Hot, dry weather damaged Brazil’s crops during the growing season, Telvent DTN Inc. said in a report yesterday. Rabobank International said on Feb. 20 prices will average $12.81 a bushel in the first quarter. So far, the average is about $12.30 a bushel. “South America’s production shortfall and strong U.S. export demand” are driving prices higher, said Erin FitzPatrick, a London-based analyst at Rabobank. The bank’s price forecasts “are a bit higher on the outlook for China’s imports. That latest forecast implied higher prices.”
Soybean futures for May delivery gained 0.3 percent to $13.06 a bushel by 10:16 a.m. London time on the Chicago Board of Trade, after earlier touching $13.1175 a bushel, the highest price since Sept. 22. A close higher would be the seventh straight gain, the longest winning streak this year.
Mewah Shifts Focus To Indonesia (Source: CME)
Mewah International, one of the world's largest palm oil refiners by capacity, said that it was putting its upcoming palm oil refinery project in Sabah Malaysia on hold while shifting focus to Indonesia. "We feel it is more important to have Indonesia in our portfolio," Rajesh Chopra, chief financial officer, said at a post-earnings briefing. Earlier Tuesday the company said that its fourth-quarter net profit fell 74% from a year earlier, to $10.7 million. The performance reflects weakening global economic growth, tightening financial markets and uncertainty in the palm oil industry due to changes in export duties by the Indonesian government, Chopra said. Indonesia in August cut the maximum export duty on refined, bleached and deodorized palm products to 13% from 25%, and the top rate for CPO exports to 22.5% from 25%. The moves helped boost growth in Indonesia's palm oil refining industry, by encouraging producers to sell to Indonesian refiners instead of exporting.
To benefit from the new tax structure, Mewah plans to invest $145 million in refinery, packing and logistics facilities in East Java Indonesia. The project is expected to be completed by end-2013, Chopra said. Meanwhile, Mewah expects growth in the first quarter to remain slow due to seasonal factors, Chief Executive Michelle Cheo said at the same briefing. But sales will likely pick up in the second quarter of this year due to Ramadan-related festival buying, she said. The company is optimistic about the long term industry outlook for the palm oil industry, she said. "We expect midstream and downstream players in palm oil industry to benefit from slowing production growth for palm oil, expected drop in soybean production in 2012, rising demand for cooking oils particularly from India, China and improvement in end demand as economic conditions improve," she said.
Argentina JV Aims To Break Soy Grip (Source: CME)
Argentine biotech firm Bioceres is teaming up with U.S.-based Arcadia Biosciences to bring a host of new transgenic soybean seeds to a market dominated by global biotech giants such as Monsanto Co.. The country is a potentially lucrative market for genetically modified seed makers. The South American farming powerhouse is the world's third-largest soybean exporter and ranks No.2 in corn exports. The 50-50 venture between Bioceres and Arcadia, dubbed Verdeca, hopes to have its soybean seeds on sale in 2015 or 2016, Arcadia Biosciences CEO Eric Rey said in an interview. The two companies have already invested about $120 million to develop seeds that will combine transgenic traits for resistance to the herbicide glyphosate with drought tolerance and increased nitrogen and water use efficiency. Another $20 million to $40 million will be spent over the next four or five years to gain regulatory approval for the seeds in key markets, including other South American nations, the U.S., China and India, Rey said.
The U.S., Brazil and Argentina dominate global soybean sales, while China is the world's top importer. Demand for soybeans has surged in recent years for use as animal feed to sate the world's growing hunger for meat. Argentina already ranks No.3 in the world behind Brazil in the area planted with genetically modified seeds, according to the International Service for the Acquisition of Agri-Biotech Applications. In its annual report, the trade group, whose backers include Monsanto and the U.S. Department of Agriculture, said that Argentina planted about 23.7 million hectares with genetically modified soybean, corn and cotton in 2011. Bioceres is owned by over 230 of Argentina's biggest farmers, who together plant about 2.5 million hectares of soybeans each year in South America. The firm has developed its seed technology with the federal government's science and technology promotion institute, Conicet.
Verdeca's strategy involves building on a platform of established genetic traits and to take advantage of the expiration of Monsanto's U.S. patent for glyphosate-resistant soybeans in 2014, said Bioceres CEO Federico Trucco. Privately held Arcadia has so far focused on developing new agricultural biotechnology and licensing it to other companies who go through the costly process of obtaining regulatory approval. But as a partner in Verdeca, Arcadia wants to take it's new seeds through the regulatory approval process, after which "value goes up dramatically," Rey said. Verdeca plans to sell its products through conventional seed channels under licensing agreements with major distribution companies, he said. But local farmers are notorious for using pirated transgenic seeds and ducking attempts by companies to collect royalties.
Monsanto failed to obtain a local patent for the genetically modified soybean seeds it introduced into Argentina 15 years ago and its efforts to collect royalties have been foiled by local regulations. Last May, Monsanto said that it hoped to reach an agreement with growers before introducing a new, improved strain of soybean seeds. Monsanto has a patent for the new seeds in Argentina, but under local law farmers aren't required to pay royalties on the seeds they hold back for the next planting season. A Monsanto spokeswoman said the company didn't have an immediate comment. Verdeca is aware of the risk of introducing new soy seeds into Argentina, but Rey is confident that the company's ownership structure will allow it to generate sales as many of its potential customers are also shareholders. "We have a built-in customer base," he said. Grupo Los Grobo, one of the largest soybean producers in the world with fields in Argentina, Brazil, Paraguay and Uruguay, owns 3% of Bioceres.
The small number of biotechnology companies in the transgenic seed market is a problem for growers and more competition is needed, Los Grobo President and Bioceres board member Gustavo Grobocopatel said in an interview. "There should be 20 Monsantos and 10 Bioceres," he said.
Palm oil gains on prospect of higher demand
SINGAPORE, Feb 28 (Reuters) - Malaysian crude palm oil futures inched up buoyed by improving demand prospects, but gains were limited as investors worried about the risks to global growth from high oil prices.
Malaysian export numbers on Monday pointed to strengthening demand, helping to lift palm oil prices which have gained 7 percent so far this year.
Canada farmers seen planting record-large canola area
WINNIPEG, Manitoba, Feb 27 (Reuters) - Canadian farmers will plant a record-large area to canola this year as they take advantage of attractive prices and dry conditions, the annual Wild Oats Grainworld outlook conference heard on Monday.
Oilseed crusher Louis Dreyfus Canada pegged canola area at 21 million acres (8.5 million hectares), while FarmLink Marketing Solutions forecast plantings of 19.4 million acres, up from 18.65 million acres last year.
W.Canada canola area seen at record 21 mln acres-Louis Dreyfus
Feb 27 (Reuters) - Western Canadian farmers look to plant a record-high 21 million acres of canola, Louis Dreyfus Canada forecast on Monday.
Strong canola prices versus spring wheat values, as well as brisk canola exports and domestic crushing will lead to a bigger canola area, said Tracy Lussier, manager of canola trading for Louis Dreyfus Canada, which operates a canola crushing plant and grain elevators in Western Canada.
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