Thursday, May 24, 2012

20120524 1104 Soy Oil & Palm Oil Related News.

Market Recap: Soybean Futures (Source: CME)
Soybean futures posted a downside day of trade and ultimately closed 18 1/2 to 24 1/2 cents lower. This was a mid-range close for most contracts. In "after hours" trade, the market trimmed losses by a few cents. Soymeal ended mixed while soyoil posted losses. Yesterday, rumors hit that Chinese importers were canceling or delaying some soybean cargo deliveries because soy crush margins had turned negative.

Soybean Complex Market Recap (Source: CME)
July Soybeans finished down 16 3/4 at 1365 1/2, 17 1/4 off the high and 14 1/2 up from the low. November Soybeans closed down 23 at 1259 1/4. This was 8 up from the low and 22 3/4 off the high. July Soymeal closed up 0.8 at 405.8. This was 8.5 up from the low and 1.2 off the high. July Soybean Oil finished down 1.44 at 49.02, 1.53 off the high and 0.47 up from the low. July soybeans pushed sharply lower on the session as talk of the hefty net long position of fund traders in soybeans and an aggressive long liquidation selling trend helped to pressure. Futures fell as much as 31 1/4 cents this morning as the outlook for some rains next week along with deteriorating economic views on the global economy helped to spark increased fund trader long liquidation selling. A jump in the US dollar, a sharp break in gold and energy markets and a collapse in equity markets helped to pressure. The market saw a near 15 cent recovery bounce off of the early lows into the mid-session as some strength in corn and only minor losses for meal helped to slow the aggressive selling from fund traders. Palm oil was down 2.9% overnight and is already at a significant discount to soybean oil on the world market so this helped drive soybean oil sharply lower today with July down to the lowest level since October of 2010. For weekly export sales in the morning, traders see soybean sales near 1.15 million tonnes.

VEGOILS-Palm oil slides to five-month low on Europe concerns
SINGAPORE, May 23 (Reuters) - Malaysian palm oil futures slipped to their lowest in more than five months , tracking a downward trend in broader commodities markets as investor caution over the euro zone debt crisis resurfaced.
"The palm oil market was under pressure today from the beginning. External oilseed markets were down so palm oil fell in line with market sentiment," said a trader with a foreign commodities brokerage in Malaysia.

Brazil 12/13 soy seen at 73.6 mln T - Reuters poll
SAO PAULO, May 22 (Reuters) - Brazil's 2012/13 soy harvest should produce 73.6 million tonnes, a Thomson Reuters survey of panelists at a Sao Paulo soy seminar showed on Tuesday, which if achieved would mark a strong rebound from this year's drought-hit crop but fall shy of a record.
The Latin American country is the world's No. 2 producer of the protein-rich oilseed after the United States but output fell sharply in the now-ending 2011/12 harvest due to drought that extended into neighboring No. 3 soy producer Argentina.

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