Thursday, June 28, 2012

20120628 1000 Soy Oil & Palm Oil Related News.

Pro Farmer: After the Bell Soybean Recap (Source: CME)
Soybean futures softened into the close to finish mixed. Nearbys closed fractionally higher, with new-crop futures ending roughly 1 to 5 cents lower on light profit-taking pressure. Meal also ended mostly lower, while soyoil closed higher. Early strength was tied to weather concerns, as a heat dome is building across the Corn Belt -- increasing stress on the crop. But in late trade, strength in the dollar and nervousness ahead of USDA's key Friday reports triggered a round of profit-taking.

Soybean Complex Market Recap (Source: CME)
August Soybeans finished up 1/2 at 1456, 25 1/2 off the high and 4 up from the low. November Soybeans closed down 1 1/4 at 1412. This was 3 1/4 up from the low and 27 3/4 off the high. August Soymeal closed down 0.5 at 423.7. This was 1.9 up from the low and 6.3 off the high. August Soybean Oil finished up 0.48 at 51.54, 0.39 off the high and 0.72 up from the low. Soybeans were trading slightly lower towards the end of the day. November soybeans posted new highs for the move and new contract highs before retreating to the bottom end of today's range. August soybean oil traded 44 cents higher while August soybean meal traded 20 cents lower. Speculative profit taking and producer selling was noted, ahead of the USDA reports for Friday. Soybean futures pushed higher this morning on a scorching heat forecast and support from the corn market. Weather forecasts call for 100 degree temperatures for the central and southern Midwest today and tomorrow. The two week weather forecast calls for above normal temperature and below normal rainfall for most of the Soybean Belt. The trade continues to monitor crop and weather conditions but expect further deterioration in the new crop soybean yield if weather patterns in July reflect those of June. The U.S. Dollar and stocks are trading higher midday ahead of the European Summit on Thursday. The USDA will release its Grain Stocks and Planting Intentions on Friday. Traders will key off the soybean planted acreage report but will likely believe that the acreage estimate from the USDA will be too high as many parts of the Midwest will not be able to double crop soybeans over harvested wheat due to topsoil dryness. Traders are penciling in an increase of 1.6 million acres. The March report estimated planted acreage at 73.9 million acres.

U.S. Farmers Facing Reality Check as Drought Hits Corn, Soybeans (Source: CME)
Springtime optimism has devolved into summertime angst for farmers such as Chris Barron, who’ve been forced to scale back once-lofty expectations for their corn and soybean crops as drought expanded across much of the U.S. Midwest.  Barron said his cropland, near Cedar Rapids in northeastern Iowa, received about 0.94 inch of rainfall so far in June, or about 20 percent of the 30-year average for the month. He’s trimmed his harvest outlook accordingly, with his corn and soybean plots likely generating yields 7 percent to 10 percent below what he estimated a few months ago. “We’ve got the potential for an average crop,” said Barron, a member of a farmer partnership that raises crops on about 7,000 acres. “The opportunity to have an above-average crop is gone. That’s just the reality.”
As farmers and grain traders await updated U.S. Department of Agriculture acreage data June 29, extreme heat and dryness has shifted squarely into market focus. Intensifying weather concern ignited a rally in CME Group grain markets, sending corn futures up over 20 percent since mid-June, and analysts say the market may have further upside if dryness continues. Drought threatens to undercut the benefits of an unusually warm and dry spring that likely led to the largest combined corn and soybean planted acreage on record.

VEGOILS-Palm eases ahead of EU meet, U.S. weather in focus
SINGAPORE, June 27 (Reuters) - Malaysian crude palm oil futures edged down as investors bet a summit of European leaders later this week is unlikely to resolve the region's lingering debt crisis soon.
"There's no new lead in terms of local sentiment, that's why the market is locked in a range of 3,000 to 3,050 ringgit. Immediate support is at 3,000 ringgit," said a trader with a foreign commodities brokerage in Malaysia.

Argentine soy crushing down 6.4 percent in May
BUENOS AIRES, June 26 (Reuters) - Argentina crushed 3.8 million tonnes of soybeans in May, down 6.4 percent from a year ago, marking the third straight month of declines, the Agriculture Ministry said in its latest crushing report.
The South American country is the world's top exporter of soyoil and soymeal, as well at its No. 3 supplier of soybeans. This season's yields have suffered from a six-week drought that parched the Pampas grains belt in December and January.

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