Monday, August 27, 2012

20120827 1017 Soy Oil & Palm Oil Related News.

ITS CPO export up 5.7% to 1,084,343 tonnes for the period of 1~25 Aug 2012.

Brazil may overtake U.S. as top soybean producer - IGC (Reuters)
Brazil could emerge as the world's top soybean producer in 2012/13 as high prices encourage plantings while the worst drought in 56 years devastates crops in the U.S. Midwest, the International Grains Council said on Thursday.

Pro Farmer: After the Bell Soybean Recap  (Source:CME)
Soybean futures ended the day stronger on crop concerns and posted strong gains for the week. Meal and soyoil followed suit. Soybean futures posted contract highs this week in reaction to disappointing Pro Farmer Midwest Crop Tour results, reminding the market that small crops get smaller. The market is now searching for a price that slows demand and as long as China comes in on the weekly buyers' sheet, there is more upside price potential for futures.

Soybean Complex Market Recap  (Source:CME)
November Soybeans finished up 16 1/2 at 1731 1/2, 5 3/4 off the high and 20 3/4 up from the low. January Soybeans closed up 18 1/4 at 1724 1/4. This was 20 1/2 up from the low and 4 1/4 off the high. December Soymeal closed up 7.5 at 522.8. This was 8.5 up from the low and 0.9 off the high. December Soybean Oil finished up 0.13 at 56.9, 0.41 off the high and 0.29 up from the low. November soybeans closed sharply higher on the day. Soybean meal and oil traded higher as well. Soybeans were dragged lower midsession by sharply lower corn and wheat action, but managed to hold onto sizeable gains into the closing bell. Traders continued to unwind calendar spreads after basis levels in the central Midwest and Gulf of Mexico slide lower on better farmer sales as new crop harvest approaches. Newswires reported that Taiwan has purchased 173,000 tonnes of US and Brazilian soybeans for November, March, and July shipment. The time period for the shipment reflects the concern major importers have in regards to the tightness in the global oilseed supply. This week's crop tour estimated the US soybean yield at 34.8 bushels/acre, plus or minus 2% vs. the USDA estimate of 36.1. Total production was estimated to be 2.6 billion bushels. The US Dollar traded sharply higher on the day which offered minimal resistance to price gains.

Wilmar Takeovers Looming After Stock’s Decline: Real M&A (Source:Bloomberg)
Wilmar International Ltd. (WIL) needs an acquisition to reduce its dependence on a money-losing, oilseed- crushing business in China as the company trades at a 65 percent discount to sales. Profit at the largest importer of soybeans into China fell 52 percent in the first half of the year as the unit that turns the beans into oil and animal feed reported a loss. The most severe U.S. drought in half a century now threatens the business further by driving up soybean prices. Down 36 percent this year, the Singapore-based company’s stock is the worst performer in the city-state’s benchmark index and is trading at its lowest price-to-sales multiple since 2008, according to data compiled by Bloomberg.
After it attempted to buy Goodman Fielder Ltd. (GFF) and considered a bid for Gavilon Group LLC this year, Wilmar could reverse its stock decline by acquiring a company that lessens its reliance on China, according to PhillipCapital. Australia’s GrainCorp Ltd. (GNC) would give Wilmar a business in food commodity trading, said Emerald Group Australia Pty, while purchasing Brazilian sugar operations would give it a foothold in the largest sugar-producing country, said Nomura Holdings Inc. “They should be making acquisitions,” James Koh, a Singapore-based analyst at Maybank Kim Eng Holdings, said in a telephone interview. “It’s better for them to diversify their portfolio in terms of their product offering. Any sort of diversification should be good for them.” Wilmar rose 0.6 percent to S$3.20 apiece at 9:34 a.m. in Singapore. GrainCorp added 0.8 percent to A$9.91 apiece.

EDIBLES: Malaysian crude palm oil futures edged higher, rising 3.6 percent in a second straight weekly gain as global oilseed supply fears and rising export demand supported prices. (Reuters)

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