Tuesday, May 15, 2012

20120515 1004 Soy Oil & Palm Oil Related News.

ITS CPO export up 0.7% to 599,044 tonnes for the period of 1~15 May 2012.
SGS CPO export down 7% to 564,477 tonnes for the period of 1~15 May 2012.

DJ Asian Crude Palm Oil Falls To 3-Month Low On Europe Worries
(2012/05/14 19:10PM)

KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives exchange slipped to a three-month low Monday, after sharp losses in European markets spurred selling across most asset classes amid worries about Greece and global growth. The benchmark July contract on the Bursa Malaysia Derivatives fell sharply during afternoon trade after Greece's latest attempt to form a coalition government failed, raising fears that the country may exit the euro zone.
The contract ended 3.8% lower at MYR3,150 a metric ton after falling as much as 4% to MYR3,145/ton, the lowest level since Feb. 10. July soyoil on the Chicago Board of Trade was trading 2.1% lower at 51.15 cents a pound by the end of trade on the BMD.
Palm oil prices also eased despite a move by China's central bank to cut its reserve requirement ratio, as "investors are taking [the cut] as a sign that things are not going well in China and its economy is weakening, raising concerns that its appetite for commodities may ease," an analyst at a Singapore-based bank said.
With further worries over Europe, palm oil prices remain vulnerable to further selling in coming sessions, with analysts tipping CPO to slip to MYR3,100/ton, even as export demand for the commodity remains firm. Palm oil exports during the first 15 days of May probably reached 599,000 tons, three trading executives said separately.
The May 1-15 export estimate is up 0.8% compared with the April 1-15 estimate of 594,798 tons by cargo surveyor Intertek Agri Services but down 1.1% when compared with SGS (Malaysia) Bhd.'s estimate of 606,804 tons. Both surveyors are expected to issue May 1-15 export estimates Tuesday.
Separately, Malaysia may find it hard to reach its 2012 palm oil production forecast of 19.3 million tons this year due to a dearth of plantation workers to harvest oil palm fruits in plantation estates, a government official said on the sidelines of an industry seminar.
Any palm production weakness in Southeast Asia may tighten further global vegoil supplies and may limit further price declines.
In the cash market, refined palm olein for May/June shipment was offered $35 lower at $1,060/ton, while cash CPO for prompt shipment was also offered MYR90 lower at MYR3,220/ton.
Open interest on the BMD was 122,887 lots, versus 123,267 lots Friday. One lot is equivalent to 25 tons. A total of 40,345 lots of CPO were traded versus 27,297 lots Friday.

Soybeans Fall to Six-Week Low on Slowing Global Growth (Source: Bloomberg)
Soybeans fell to the lowest in more than six weeks on speculation that Europe’s worsening debt crisis and slowing Chinese economy will curb demand for food, feed and fuel made from the oilseed. Corn rose. The dollar climbed to a three-month high versus the euro, increasing costs for overseas buyers of U.S. grains and reducing investor demand for commodities as a hedge against inflation. JPMorgan Chase & Co. and Citigroup Inc. cut Chinese growth forecasts after government reports last week showed industrial production grew at the slowest pace since 2009 in April. “Soybeans are trading lower on forecasts for slowing global growth,” Chad Henderson, a market analyst for Prime Agricultural Consultants Inc. in Brookfield, Wisconsin, said in a telephone interview. “Speculators are dumping long positions in soybeans.”
Soybean futures for July delivery declined 1.4 percent to close at $13.87 a bushel at 1:15 p.m. on the Chicago Board of Trade, the fifth drop in six sessions. Earlier, the most-active contract touched $13.76, the lowest since March 30. Corn futures for July delivery rose 0.3 percent to $5.83 a bushel in Chicago. On May 11, the grain touched $5.7225, the lowest since Oct. 3. Prices have fallen 9.8 percent this year as U.S. farmers told the government in March they intend to plant the most acres since 1937.

Soybean Complex Market Recap (Source: CME)
July Soybeans finished down 19 at 1387, 19 3/4 off the high and 11 up from the low. November Soybeans closed down 26 1/2 at 1294 3/4. This was 1 1/4 up from the low and 29 1/2 off the high. July Soymeal closed down 5 at 403.5. This was 5.1 up from the low and 6.4 off the high. July Soybean Oil finished down 0.94 at 51.3, 1.13 off the high and 0.33 up from the low. July soybeans closed moderately lower on the session and pushed to the lowest level since March 30th but the low was early in the day and the market closed well up from these early lows. Talk that there will be more planted acres than the March 30th USDA intentions report plus ideas that the winter wheat crop will be harvested earlier than normal which could benefit double-cropped soybeans helped to pressure. Long liquidation selling from fund traders appears to be the key bearish force today. The market saw bearish news from outside markets, good weather and a lack of new export news as reasons for the continued long liquidation selling trend early today. A sharp break in the stock market, a jump in the US dollar and weakness in metal and energy markets helped to pressure early. European financial concerns and a lack of a reaction to news of further easing in China added to the negative tone early today. Traders see planting progress near 42% complete for this afternoon's weekly update and a dry forecast for the week suggests a very active planting week ahead. The NOPA crush report this morning was considered bearish on demand as the April crush came in at just 131.7 million bushels which was about 3 million below trade expectations. Oil stocks were higher than expected at 2.385 billion pounds. Weekly export inspections came in at 20.3 million bushels which was well above trade expectations and compares with 11.9 million bushels per week to reach the USDA projection.

Market Recap: Soybean Futures  (Source: CME)
Soybean futures finished 19 to 26 3/4 cents lower in the July through March 2013 contracts. Far-deferred futures finished with slightly lesser losses. May soybean futures expired 14 cents lower at $13.90. New-crop futures led losses and closed near session lows. Soybean futures were pressured by outside markets as investors took a broad, risk-off stance amid building concerns in the euro-zone.

VEGOILS-Palm oil drops to 3-month low, Greek turmoil weighs
SINGAPORE, May 14 (Reuters) - Malaysian palm oil futures extended losses to a near 3-month low, as failed talks to form a new Greek government  heightened fears over the euro zone debt crisis.
"Political uncertainty in euro zone and a gloomy global economic outlook weighed on the market. Weakness in Malaysian palm overnight is also a factor," said a trader with a local commodities brokerage in Malaysia, referring to palm oil futures that slipped to a 9-week low on Friday.

China May soy imports seen at 6-mth high - Mofcom
BEIJING, May 14 (Reuters) - China, the world's top soy buyer, is likely to import 5.63 million tonnes of the oilseed in May, the commerce ministry estimated on Monday, up 15 percent from actual arrivals of 4.88 million tonnes in April.
The figure, the highest since last November, is in line with analyst estimates of 5.7-6.0 million tonnes. Chinese crushers have increased imports on encouraging crushing margins.

Rains hold back Argentine soy harvest pace
BUENOS AIRES, May 11 (Reuters) - Argentina's 2011/12 soybean harvest slowed down in the last week because of rain in some areas, the Agriculture Ministry said on Friday in its latest weekly crop progress report.
The South American country is the world's top supplier of soyoil and soymeal. The government predicts soy output of 42.9 million tonnes this season after a drought in December and early January slashed initial expectations for a bumper crop.

On verge of 22-hour grain trading, an era passes
CHICAGO, May 10 (Reuters) - The ka-chunk, ka-chunk of punch clocks echoed across the silent trading floor at the Chicago Board of Trade, as a tiny group of traders gathered at the soybean oil pit for a ritual as routine as the seasons -- the U.S. government's monthly crop report.
But now, for one last time, these traders were allowed a luxury that some had taken for granted: time.

India's April vegoil imports rise; refined palm down
MUMBAI, May 11 (Reuters) - India's vegetable oils imports in April rose 27 percent from a month earlier largely on a surge in crude palm oil and soyoil purchases, but imports of refined palm oil dropped as buyers feared they could face fresh import duties, a trade body said.
India, the world's largest vegetable oil importer, buys mainly palm oils from Indonesia and Malaysia, and a small quantity of soyoil from Brazil and Argentina.

Louis Dreyfus Said to Invest $150 Million in Malaysia’s Felda (Source: Bloomberg)
Louis Dreyfus Holding BV agreed to pay about $150 million for a stake in Felda Global Ventures Holdings Bhd. ahead of the Malaysian company’s initial public offering, said two people with knowledge of the matter. Louis Dreyfus will hold about 2.5 percent of Felda Global after its share sale, the people said, declining to be identified as the details are private. The commodities company will buy shares at the same price as global institutional investors in the IPO, they said. Felda Global may raise as much as $3.3 billion in Asia’s biggest initial public offering since February 2011, people with knowledge of the matter said last month. The palm oil, rubber and cocoa producer may list as early as this month or in June to take advantage of strong palm oil prices, Chairman Mohd Isa Abdul Samad told reporters on April 25.
Louis Dreyfus Chairman told French daily Les Echos in an interview that the firm may take a stake in Felda Global as part of an industrial partnership the two companies have agreed on. Sabri Ahmad, Felda’s group managing director, is traveling overseas and not immediately available for comment, a spokesman said. Felda Global manages oil palm and some rubber estates for the Federal Land Development Authority, a Malaysian government agency. It has about 355,864 hectares (878,984 acres) of plantations in Malaysia in addition to land in Indonesia. The company also has palm oil refining businesses in China, Indonesia, Turkey and South Africa, according to a draft prospectus for the IPO.

Counter-measures for palm oil
A proposal to set up a Consortium of Independent Producers and Refiners of Malaysia (CIPROM) is being deliberated as one of the strategies under the Government‟s palm oil policy reforms, said a source close to the plantation industry. The source said CIPROM could be one way for the Government to counter the Indonesian low palm oil export duty regime which made the Malaysian independent palm oil refiners‟ business uncompetitive following the supply of „cheaper incoming‟ crude palm oil (CPO) and „competitive outgoing‟ refined palm products such as R&D (refined, bleached and deodorized) palm olein from Indonesia. (StarBiz)

Hamzah Zainudin, Malaysia’s deputy plantation industries and commodities minister, said the country needs to attract locals to replace overseas workers in the palm-oil industry, which is facing an “acute” labor shortage. “The acute shortage of skilled and unskilled workers in oil-palm plantations is due, in part, to the demanding nature of the work in estates and the growing number of attractive alternative job opportunities in other industries. These workers are needed for all key activities, such as land preparation, nurseries, planting, fertilizer application, field upkeep and maintenance, harvesting, collection and transportation. According to a survey conducted by the Malaysian Palm Oil Board, there is a shortage of about 35,473 workers for various job categories in oil-palm plantations throughout the country in 2011.” (Bloomberg)

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