Soybeans (Source: CME)
US soybean futures end lower, backpedaling after setting a 5-month high, falling in sympathy with slumping corn and wheat futures. Sharp declines there sparked broader selling across grain and oilseed markets, with traders taking profits on recent gains ahead of Friday's USDA supply-and-demand report. Overbought technical indicators and the absence of fresh demand news to sustain bullish momentum encouraged traders to reduce some risk exposure. Traders say the bullish features of exports demand and smaller South American crop sizes were adequately factored into prices. CBOT May soy ended down 8 1/2c at $13.26 3/4 a bushel.
Soybean Meal/Oil (Source: CME)
May soymeal fell $1.40 to $364.50/short ton and May soyoil dropped 0.30c to 52.98c/pound.
India's refined palm oil imports to double
NEW DELHI, March 7 (Reuters) - India's refined palm oil imports could more than double in the year to Oct. 31, 2012 and rise to 2.4 million tonnes as a result of an export tax change by leading producer Indonesia, a leading trader and edible oils industry expert said on Wednesday.
Total edible oil imports will increase 13.1 percent to 9.5 million tonnes in 2011/12, as rapeseed output drops while demand rises, Govindbhai G. Patel, managing partner of GG Patel & Nikhil Research Co., told Reuters.
Palm oil gains on upbeat price outlook
Malaysian crude palm oil futures edged up on Wednesday, as bullish price outlook from leading analysts at a key conference lifted investor sentiment and reversed earlier losses.
"Markets were pathetically quiet ahead of the analysts' price forecasts, and prices were stuck within tight range. However, bullish views are expected and that will likely put sellers on hold," said a dealer with a foreign commodities brokerage in Kuala Lumpur.
Malaysia's response to Indonesia tax to drive palm oil-official
KUALA LUMPUR, March 6 (Reuters) - Malaysia, the word's No.2 palm oil producer, needs to address Indonesia's export tax changes to win back orders from the world's top supplier or stocks will rise and bring prices below 2,500 ringgit ($830), an industry official said on Tuesday.
Malaysia has been struggling to come up with a response to Indonesia's move to slash export tariffs for refined palm oil, which has boosted margins for its domestic processors and allowed them to offer discounts to overseas buyers.
Palm-Oil Stockpiles in Malaysia May Drop to Lowest in Six Months
2012-03-07 22:00:00.0 GMT
By Ranjeetha Pakiam
March 8 (Bloomberg) -- Palm-oil reserves in Malaysia, the second-biggest supplier after Indonesia, declined to a six-month low in February after production slumped for a fourth straight month, according to a Bloomberg News survey.
Stockpiles fell 5.4 percent to 1.9 million metric tons, dropping below the 2 million-mark for the first time since August, according to the median estimate in the survey of three analysts and two plantation companies. Inventories are still expected to be 28 percent higher than a year earlier, according to the survey. Official estimates are due for release March 12.
Declining reserves may highlight tighter global edible-oil supplies as soybean output drops in South America after a drought. Lower palm-oil stockpiles may help boost prices in Malaysia that gained 2.9 percent this year, while potentially raising profits for companies including Sime Darby Bhd.
“It’s a lean season for palm oil production” Vimala Reddy, an analyst at Karvy Comtrade Ltd., said by phone from the Indian city of Hyderabad. “Export demand has been better in terms of comparison to January.”
Output fell 8.3 percent to 1.18 million tons last month, the lowest since February last year, from 1.29 million tons in January, according to the survey. Exports dropped 7.3 percent to 1.28 million tons, the survey showed. Shipments fell 10.5 percent to 1.18 million tons in February from a month earlier after 12 percent drop in January, according to surveyor Intertek.
The May-delivery contract gained 0.7 percent to 3,266 ringgit ($1,079) a ton on the Malaysia Derivatives Exchange yesterday. Futures advanced 6.2 percent last month, the best monthly performance since December 2010, after reaching an eight-month high of 3,321 ringgit on Feb. 28.
Mistry’s Forecast
Palm oil may gain to 4,000 ringgit on declining global vegetable-oil stockpiles, Dorab Mistry, director of Godrej International Ltd., said yesterday. The global soybean harvest may drop by 19 million tons in 2011-2012, the most ever, Hamburg-based researcher Oil World said on Feb. 28.
Exports may pick up as India and China, the biggest consumers, buy more of the tropical oil because of the reduced soybean-oil supply from Argentina and Brazil, Reddy said. Palm oil and soybean oil are substitutes in food and fuels.
Palm-oil production would take time to rebound from the seasonally-low output months of January and February, with a recovery is expected only in June or July, Karvy’s Reddy said. The low-output cycle may end in November, Godrej’s Mistry said.
Output in Malaysia, will reach 19 million tons this year as more plantations mature, Plantation Industries and Commodities Minister Bernard Dompok said Jan. 19. Production gained 11 percent to 18.9 million tons in 2011, according to data from the Malaysian Palm Oil Board, which releases the monthly figures.
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