Friday, June 29, 2012

20120629 1001 Soy Oil & Palm Oil Related News.

Palm-Oil Exports From Indonesia Set to Advance on Ramadan (Source: Bloomberg)
Palm-oil shipments from Indonesia, the world’s largest producer, may climb 9.5 percent in June from a month earlier on sustained demand before the Muslim fasting month of Ramadan. Exports are set to climb to 1.5 million metric tons from 1.37 million tons while output will probably be little changed at 2.1 million tons, according to the median of five plantation and refining company executives in a Bloomberg News survey. Inventory will also be little changed at 1.85 million tons, two of the respondents said. Futures lost 17 percent from a 13-month high in April as the debt crisis in Europe and the slowing economy in China, the largest cooking-oil user, cut demand, potentially reducing costs for Nestle SA (NESN), the world’s largest foodmaker, and curbing revenues at PT Astra Agro Lestari and Golden Agri-Resources Ltd. (GGR), the second-biggest grower.
“Global demand, either from India or other countries, will usually increase by 15 percent to 20 percent during the festive seasons,” said Derom Bangun, a deputy chairman at the Indonesian Palm Oil Board, a group of growers and refiners. “This will support prices even as the pressure from the European crisis is still quite strong.” The holy month of Ramadan starting this year in late July is a time when consumption of cooking oil usually climbs as followers break daylong fasts with communal meals. The Eid al- Fitr festival marks the end of fasting.

Pro Farmer: After the Bell Soybean Recap (Source: CME)
As expected, soybean futures saw a choppy day of trade, but bears had momentum into the close. Futures settled mid- to low-range with losses of 5 to 9 3/4 cents. Soyoil and soymeal futures also finished under pressure. At times today, the soybean market took part in corn's weather rally as scorching temps and the limited precip are worrisome.

Soybean Complex Market Recap (Source: CME)
August Soybeans finished down 8 3/4 at 1447 1/4, 17 3/4 off the high and 8 1/2 up from the low. November Soybeans closed down 9 at 1403. This was 10 1/4 up from the low and 19 1/2 off the high. August Soymeal closed down 2.4 at 421.3. This was 0.8 up from the low and 8.1 off the high. August Soybean Oil finished down 0.45 at 51.09, 0.63 off the high and 0.32 up from the low. November soybeans closed lower for the third session in a row. August soybean meal traded moderately higher early and was unchanged coming into the close. August soybean oil was weaker throughout the day to close near it's session lows. Outside markets turned negative midday after President Obama's healthcare package was upheld in the Supreme Court. Considering the long fund position in the soybean market, outside market pressure likely triggered some profit taking in the soybean market. Afternoon weather maps continue to show rainfall in the 1 to 3 day forecast for Iowa, northern Illinois, northern Indiana, and Ohio. Changes vs. the morning maps include showers reaching farther south with heavier rainfall to the north. The USDA reported that private exporters sold 110,000 tonnes of soybeans to an unknown destination for the 2012/13 marketing year. The steady sales pace of new crop soybeans continues to provide a positive market sentiment to the trade going forward. Weekly exports sales were considered neutral with 403,900 metric tonnes for the current marketing year and 389,200 for the next marketing year for a total of 793,100. Cumulative soybean sales stand at 102.8% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 99.2%. Net meal sales came in at 229,600 metric tonnes for the current marketing year and 31,600 for the next marketing year for a total of 261,200. Old crop sales of 61,000 metric tonnes are needed each week to reach the USDA forecast. Net oil sales came in at 8,300 metric tonnes for the current marketing year and 5,200 for the next marketing year for a total of 13,500. Sales of 4,000 metric tonnes are needed each week to reach the USDA forecast. The USDA will release its Grain Stocks and Planting Intentions report tomorrow morning. Heading into the report, traders are keying off the soybean planted acreage report. Many will quickly believe that the USDA will be too high as 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 from the March estimate of 73.9 million acres.

Palm oil hits 2-week low ahead of EU summit, USDA eyed
SINGAPORE, June 28 (Reuters) - Malaysian crude palm oil futures slipped to a more-than-two-week low on Thursday, as investors awaited the outcome of a European leaders' summit that is unlikely to produce concrete measures to solve the region's debt crisis.
"Prices are juxtaposed between the positive vibes of U.S. weather and negative news from Europe. Market players are awaiting Friday's USDA numbers before adding on more exposure," said a trader with a local commodities brokerage in Malaysia.

The government will host a roundtable discussion with the private sector, especially plantation industry players, on the details of a proposal to export excess oil palm seeds, says Minister of Plantation Industries and Commodities Tan Sri Bernard Dompok. He said the private sector plays a huge role in making the proposal a reality, as the government is only the policy maker and the execution has to be done by industry players. "The discussion will begin as soon as the private sector is ready. The government is keen to implement the policy. (Bernama)

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