Tuesday, March 27, 2012

20120327 1007 Soy Oil & Palm Oil Related News.

Soybean futures ended mid-range (including overnight trade), but still posted solid gains with old-crop futures 10 1/4 to 13 3/4 cents higher. The rest of the market ended mostly 5 to 8 cents higher. Soybeans were supported by ongoing concerns with the Brazilian soybean crop and Chinese demand prospects. (Source: CME)

Soybean Complex Market Recap (Source: CME)
Mon 26 Mar 2012 14:27:00 CT
May Soybeans finished up 13 3/4 at 1379 1/2, 9 off the high and 15 1/2 up from the low. July Soybeans closed up 12 1/2 at 1384 1/4. This was 14 3/4 up from the low and 9 1/4 off the high. May Soymeal closed up 4.9 at 377.9. This was 5.5 up from the low and 1.0 off the high. May Soybean Oil finished up 0.55 at 55.43, 0.39 off the high and 0.77 up from the low. May soybeans closed off of the early highs but still sharply higher on the day. Weakness in the US dollar and a surge higher in equity and metal markets helped to drive the market to the highest level since September 16th early in the session. More talk of a smaller South America crop and the potential impact on US demand plus a positive tilt to outside market forces helped to support strong gains early in the session today. Another private forecast from Brazil for a crop of 66.7 million tonnes helped to support the market overnight as this estimate compares with the USDA March estimate of 68.5 million tonnes. Weekly export inspections came in at 24.9 million bushels which was in the range of estimates and compared with just 12.5 million necessary each week to reach the USDA forecast for the season. China is expected to auction 300,000 tonnes of reserve soybeans tomorrow. Traders indicated that the market is in an overbought condition with the non-commercial (fund) traders holding a record high net long position of 211,428 contracts in the last COT report. Funds were noted buyers in soybeans and active sellers in corn today.

U.S. Soy Acreage To Rise After Futures Rally (Source: CME)
By Thomson Reuters - Mon 26 Mar 2012 12:29:47 CT
U.S. farmers will devote the fifth largest area ever to soybeans this spring as a futures market rally over the winter boosted enthusiasm for the crop.
The average of analysts' estimates for U.S. 2012 soybean plantings was 75.393 million acres, according to a Reuters survey of 25 market watchers. A year ago, soybean acreage was 74.976 million acres.

Soy Exends Gains on Poor Crop Outlook. Corn and Wheat Ease (Source: CME)
By Thomson Reuters - Mon 26 Mar 2012 12:25:44 CT
U.S. soybeans inched up after rising more than 1 percent in the previous session due to lingering concerns about the drought-induced cut in South American crops and signs U.S. farmers may plant more corn at the expense of the oilseed. "The USDA is likely to lower its forecast for soy production in South America and that is the biggest support to prices in Chicago," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia.

VEGOILS-Palm oil at new 9-mth high on exports, U.S. plantings eyed
SINGAPORE, March 26 (Reuters) - Malaysian palm oil futures extended gains to a new nine-month high as strong exports data and drought woes in soy-producing South America boosted investor sentiment.
"A higher price is expected as the commodity closed higher for the third consecutive week after breaking a high of 3,270 ringgit," said a trader with a local commodities brokerage in Kuala Lumpur.


FELDA's revenue from the export of palm oil will not be affected, should the government stop importing crude oil from Iran. FELDA chairman Tan Sri Mohd Isa Abdul Samad said this was because the export of palm oil from FELDA to Iran was worth only RM1m a year. (Bernama)

Palm oil prices hit a year high on Monday amid a broader rally in oilseeds triggered by concerns about the soyabean crop in South America. A drought in South America, which grows half the world’s soyabeans, has been pushing up the price of vegetable oil and the commodities they are made from. Rabobank said that the extent of the damage was becoming evident as the harvest in the southern states of Brazil progressed. “We are seeing more and more evidence of yield loss in South America.” Although palm oil stocks remain high, global oilseed production is expected this year to fall by about 9m tonnes while demand is forecast to rise by about 12m tonnes, according to the US Department of Agriculture. Corn and soyabeans usually compete for acreage in the US, and while some agriculture experts had predicted that the rally in oilseeds would upset the acreage forecasts, analysts said that the price increases in soyabeans were not enough to encourage a switch into that commodity as grain prices also remained high. Demand for grains remains high and analysts said farmers in North America, who have started to plant their crops, were still biased towards corn. That would mean that soyabean supply in the new 2012-13 crop year would remain tight as stocks would not be replenished. (Financial Times)

Malaysia’s palm oil exports rose 7.7% in the first 25 days of March from the same period in February, independent market surveyor Intertek said. (Bloomberg)

No comments: