Monday, May 21, 2012

20120521 1144 Soy Oil & Palm Oil Related News.

ITS CPO export up 2.1% to 862,337 tonnes for the period of 1~20 May 2012.
SGS CPO export up 3.1% to 865,570 tonnes for the period of 1~20 May 2012.

Market Recap: Soybean Futures (Source: Bloomberg)
Soybean futures got off to a firmer start, but late, heavy selling sent the market plummeting 16 to 33 cents on the close. Today’s losses brought the market to a steady to lower close for the week. Given favorable weather this week, traders expect Monday’s Crop Progress Report to reflect bean planting surged ahead. This will limit the market’s upside. Fresh demand news will be needed to prevent further selling in beans as it appears money is flowing out of beans and into corn and wheat.

Soybean Complex Market Recap (Source: Bloomberg)
July Soybeans finished down 33 at 1405, 33 3/4 off the high and equal to the low. November Soybeans closed down 18 1/2 at 1288. This was equal to the low and 29 1/2 off the high. July Soymeal closed down 10.1 at 417.9. This was 0.9 up from the low and 12.9 off the high. July Soybean Oil finished down 0.4 at 50.32, 0.52 off the high and 0.29 up from the low. July soybeans sold off sharply today but still managed to close 1cent higher on the week. Funds were noted as unwinding long soybean short wheat and short corn spreads, and this helped support the other grains and pressure soybeans. November soybeans stayed in a choppy range into mid-session, as the market seemed to find support from the dry weather forecast, but a new round of selling emerged this afternoon, which send the market sharply lower. The jump in wheat provided some early support, but the market drifted lower to trade moderately lower on the session into the mid-session. Further weakness in China and ideas that the China economy may suffer short-term with so much uncertainty coming out of Europe has helped to spark some long liquidation selling recently, and news that China plans to offer 600,000 tonnes of soybeans from state reserves next week which could help to slow the short-term import demand helped to limit the advance. Ideas that the rally yesterday was a bit overdone added to the negative tone. July meal pushed sharply lower after surging to its highest level since May 2nd yesterday, while July oil pushed moderately lower, to its lowest level since December 16th to 50.03 before a bounce off of the lows. Traders believe there needs to be some progress in Europe over the weekend and early next week, otherwise macroeconomic weakness could continue to pressure the market next week as well.

China to sell 600,000 T domestic soy reserves next week  (Source: Bloomberg)
China, the world's top soy importer, will sell 600,000 tonnes of domestic soy from state reserves next week to draw down old government stocks, and analysts expect the sales could pressure crushing margins and slow down imports.
The government will offer the soy for public bidding on May 24, said an official announcement posted on the web site www.cereal.com.cn. It did not publish any prices.

Large specs eye move out of soy into wheat
(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, May 17 (Reuters) - Large speculative traders in the grains and oilseeds arenas look to be on the verge of rotating some of their record-high long exposure in soybeans to winter wheat, given that soybean values are backing away from four-year highs while wheat prices remain close to the lower third of their trading range seen since 2008 and potentially primed for strength on concerns over global crop supplies.
Worries about global soy supply tightness continues to draw speculator interest to that arena, but judging by recent price action many large traders appear to be paring back that exposure while building positions in wheat.

VEGOILS-Palm oil ends off 5-month low on Europe fears
SINGAPORE, May 18 (Reuters) - Malaysian palm oil futures ended almost flat  after hitting a near 5-month low, as lingering worries over Greece's potential exit from the euro zone dampened investors' risk appetite.
"The sell down has not happened only to palm oil, it also happened to gold, crude oil and the equities market. Sentiment is very bad," said Alan Lim, research analyst with Malaysia's Kenanga Investment Bank.

Argentine govt cuts soy view, eyes new wheat area
BUENOS AIRES, May 17 (Reuters) - Argentina cut its 2011/12 soy forecast to 41.5 million tonnes from 42.9 million last month and predicted 2012/13 wheat area would shrink nearly 14 percent from last season, the government said on Thursday.
A six-week drought in December and January took a toll on both soy and corn yields. The South American country is the world's No. 2 corn exporter and top soyoil and soymeal supplier.

China to sell 600,000 T domestic soy reserves next week
BEIJING, May 17 (Reuters) - China, the world's top soy importer, will sell 600,000 tonnes of domestic soy from state reserves next week to draw down old government stocks, and analysts expect the sales could pressure crushing margins and slow down imports.
The government will offer the soy for public bidding on May 24, said an official announcement posted on the web site www.cereal.com.cn. It did not publish any prices.

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