Wednesday, May 23, 2012

20120523 1029 Soy Oil & Palm Oil Related News.

Market Recap: Soybean Futures (Source: CME)
Soybean futures settled 30 1/4 to 31 cents lower in the July through September contracts. November soybeans settled 24 cents lower, with slightly lesser declines in far-deferred contracts. Losses were mildly extended from those levels in "after-hour" trading. Futures were initially pressured by the fast start to the growing season after USDA reported 76% of the crop was planted and 35% had emerged as of Sunday.

Soybean Complex Market Recap (Source: CME)
July Soybeans finished down 31 1/2 at 1381, 36 3/4 off the high and 6 up from the low. November Soybeans closed down 25 at 1281 1/4. This was 10 1/4 up from the low and 29 3/4 off the high. July Soymeal closed down 10.5 at 406.0. This was 2.0 up from the low and 13.0 off the high. July Soybean Oil finished down 0.49 at 50.43, 0.85 off the high and 0.08 up from the low. July soybeans pushed sharply lower on the session and pushed to the lowest level since March 30th and was trading 32 cents lower on the day late in the trading session. Traders believed that the warm and dry weather for the Midwest into next week is already priced but that the ridge may break down and allow more widespread rains into next week. Mid-day weather models helped confirm this idea with rain events in the 6-10 day and the 11-15 day models for the central and southern Midwest and the eastern Corn Belt; areas which have been dry. This, along with a negative tilt to outside markets due to a strong US dollar and weakness in gold and crude may have helped spark the long liquidation selling seen from fund traders. The sharp drop in corn and wheat plus news of record fast soybean planting pace added to the negative tone early. As of May 20th, a record 76% of the soybean crop was planted. Some traders remain concerned with uneven emergence and crusting issues for parts of the Midwest which have not seen rain in the past week or more. The wetter forecast might reduce these concerns. December meal closed sharply lower on the session as well and pushed under last weeks lows to move to the lowest level since March 30th.

VEGOILS-Palm oil rises in thin trades on Europe hopes
SINGAPORE, May 22 (Reuters) - Malaysian palm oil futures edged up in thin trades , as hopes grew that Europe would take steps to tackle its debt crisis that has triggered a massive sell-off in the global financial markets.
"Market is stil stuck within yesterday range, it's a continuation of the consolidation phase. No one wants to do anything as market sentiment is still rather mixed," said a dealer with a foreign commodities brokerage in Malaysia.

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