Thursday, May 10, 2012

20120510 0941 Soy Oil & Palm Oil Related News.

MPOB Official Data for the month of Apr 2012 vs Mar 2012
Exports up 0.1% to 1.33 million tonnes
Stocks down 5.4% to 1.85, million tonnes
Output up 5.1% to 1.27 million tonnes

SGS CPO export down 14.2% to 419,364 tonnes for the period of 1~10 May 2012.
ITS CPO export down 6% to 450,269 tonnes for the period of 1~10 May 2012.

Market Recap: Soybean Futures  (Source: CME)
Soybean futures closed 7 to 11 3/4 cents lower, which was in the middle of today's trading range. Meal futures finished mixed, while soyoil was solidly lower. Soybean futures faced heavy pressure from outside markets today as traders reacted to building euro-zone concerns with broad-based risk aversion. But the soybean market was able to brush aside some of this strong spillover pressure as the market recovered well off session lows. Futures were also pressured by position squaring ahead of tomorrow morning's Supply & Demand Report from USDA.

Soybean Complex Market Recap  (Source: CME)
July Soybeans finished down 8 at 1430 1/4, 11 1/2 off the high and 17 up from the low. November Soybeans closed down 7 at 1333 1/2. This was 15 up from the low and 12 3/4 off the high. July Soymeal closed down 1.3 at 416.0. This was 7.6 up from the low and 3.1 off the high. July Soybean Oil finished down 0.45 at 52.82, 0.73 off the high and 0.02 up from the low. July soybeans closed moderately lower on the session but the market saw a very strong recovery from the early lows. Funds were noted as massive sellers; especially early today. Eurozone debt concerns were a key negative force for the market early today as a sharp break in global equity markets and a surge higher in the US dollar helped spark a continued long liquidation selling trend early today. The selling left July soybeans down as much as 99 1/4 cents in just six trading sessions. Outside markets turned much less negative into the mid-session which helped support the very strong recovery off of the lows into the mid-session with July down just a few cents on the day. Soybean oil was slightly higher on the day into the mid-session but closed sharply lower while meal saw the lows early and closed slightly lower on the session but near the highs of the day. For the report, traders see Argentina production down to near 42 million tonnes from 45 million last month and Brazil production near 64.5 million tonnes from 66 million last month. As a result, world ending stocks for the 2011/12 season are expected to drop to near 53.3 million tonnes from 55.52 million last month. Stocks for the new crop season are expected to recovery to near 59.3 million tonnes. US ending stocks for the 11/12 season are seen near 215 million bushels as compared with 250 million posted in the April update. For 2012/13 season, traders see ending stocks near 165 million bushels but with a range of near 90 to as high as 250 million bushels. For the weekly export sales, traders see soybean sales near 1.32 million tonnes as compared with 1.732 million last week.

GRAINS-U.S. soy drops for 3rd day on euro zone concerns
SYDNEY, May 9 (Reuters) - U.S. soybeans fell for a third consecutive session, while corn and wheat ticked lower, amid a broad-based weakness in financial markets which was triggered by escalating fears about Greece's political crisis.
"There was obviously a heavy selloff last night, particularly in soybeans, and we are seeing a continued selloff in Asia on macroeconomic sentiment," said one commodity analyst, who declined to be named. "There is also a slightly strong U.S. dollar which is driving down commodity prices."

VEGOILS-Palm slips as Europe political concerns weigh; data eyed
SINGAPORE, May 9 (Reuters) - Malaysian palm oil futures edged lower, as political uncertainty in Europe and a slew of industry data due the following day deterred traders from taking risky positions.
"Currently it's more like a positioning ahead of the MPOB (Malaysian Palm Oil Board) data and USDA (U.S. Department of Agriculture) report," said Ker Chung Yang, an analyst with Phillip Futures in Singapore.

Oil World cuts Argentine soybean crop forecast
HAMBURG, May 8 (Reuters) - Hamburg-based oilseeds analyst Oil World has cut its forecast of Argentina's 2012 soybean crop for the second time in two weeks by 1.5 million tonnes because of drought damage.  Oil World now forecasts Argentina's 2012 soybean crop at 41.0 million tonnes, down from 49.2 million harvested in 2011, the analyst said on Tuesday.
The latest reduction follows a series of cuts in Oil World's Argentine crop forecasts in April totalling 4.0 million tonnes because of bad weather in the country. Oil World had only on April 24 cut its forecast by 1.5 million tonnes.

The long overdue revision of Malaysia's crude palm oil (CPO) export tax policy which has been unchanged since the 1960s will likely take place by year-end or early next year, according to sources close to the industry. Sources said Plantation Industries and Commodities Ministry had last month submitted to the Cabinet several proposals including a fall-back plan to abolish the duty-free CPO export quota while seeking lower CPO export duty. (StarBiz)

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