Wednesday, April 18, 2012

20120418 0942 Soy Oil & Palm Oil Related News.

Recap: Soybean Futures  (Source: CME)
Soybean futures closed 5 1/2 to 7 1/2 cents higher, which was near the middle of today's range. Meal futures were mostly $2.40 to $3.40 higher, while soyoil posted gains of 9 to 12 points. Buyers returned to the soybean market today after consecutive days of corrective price declines. Fundamental support came from fresh demand news as USDA announced daily sales of 225,000 metric tons (MT) of soybeans to unknown destinations, split between this and the upcoming marketing year.

Soybean Complex Market Recap (Source: CME)
May Soybeans finished up 5 3/4 at 1425 3/4, 8 3/4 off the high and 7 1/2 up from the low. July Soybeans closed up 7 1/4 at 1431 1/2. This was 8 3/4 up from the low and 7 3/4 off the high. May Soymeal closed up 2.4 at 393.8. This was 2.7 up from the low and 1.5 off the high. May Soybean Oil finished up 0.1 at 55.76, 0.62 off the high and 0.15 up from the low. May soybeans closed slightly higher on the session but well off the early highs as long liquidation selling in corn emerged to drive corn moderately lower on the session. May soybeans were up 14 1/2 cents higher on the day early in the session but traded down to less than 3 higher late in the day before a bounce. A much stronger tone regarding the global growth outlook and the surge in the US stock market plus news of further strong export demand for US soybeans helped spark the solid gains early in the session today. The USDA confirmed sales of 225,000 tonnes of US soybeans to unknown destination with 110,000 tonnes for the 2011/12 season and 115,000 for the 12/13 season. Taiwan bought 60,000 tonnes of Brazil soybeans in their tender for US or Brazil soybeans which was expected. More estimates for a smaller South America crop than the April USDA estimate added to the positive tone. However, the market lacked new buying interest on the rally and weakness in old crop corn seemed to entice some late in the day, long liquidation selling.

Soybean bulls shouldn't get too cocky
--Gavin Maguire is a Reuters market analyst. The views expressed are his own. To get his real-time views on the market, please join the Global Ags Forum--
CHICAGO, April 16 (Reuters) - Roughly 600 million bushels and counting... That's the extent of soybean production cuts made by the U.S. Department of Agriculture (USDA) to South American soy crop projections since the beginning of the year.
Considering that total equates to roughly 20 percent of last year's U.S. crop - and that most traders are looking to U.S. producers to make up any 2012 supply shortfall - it's not that surprising that soybean prices have been able to muster their 20 percent price advance since the beginning of the year. But with demand rationing already taking place in response to the higher soybean costs, have prices already done enough to bring this market back into balance?

VEGOILS-Palm gains on tight supply; Europe woes weigh
SINGAPORE, April 17 (Reuters) - Malaysian palm oil futures inched up on tightening global oilseed supply, although gains were limited as weaker exports and soaring Spanish borrowing costs weighed on sentiment.    
"Negative macroeconomic factors coupled with weaker export numbers may force traders to take profits. But fundamentally supply for crude palm oil and other vegetable oil is still very tight, so that should be supportive throughout the second quarter," said Alan Lim, research analyst with Kenanga Investment Bank in Malaysia.

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