Friday, September 7, 2012

20120907 1043 Soy Oil & Palm Oil Related News.

Palm-Oil Exports From Indonesia May Climb for Third Month (Bloomberg)
Palm-oil exports from Indonesia, the largest producer, will probably increase for a third month in September as rising output and a lower tax boost purchases of the commodity used in everything from candy to biofuel. Shipments may advance to 1.6 million metric tons this month after gaining an estimated 1.4 percent to 1.4 million tons in August from July, according to the median estimates of five plantation executives in a Bloomberg News survey. While output may have dropped to 1.9 million tons last month from an estimated 2 million tons in July, it will rise to 2.1 million in September, four of the respondents said. The executives didn’t provide forecasts for inventories.
Palm oil in Malaysia, the benchmark price in the second- largest producer, has lost 7.2 percent this year even as soybeans in Chicago rallied to an all-time high on damage from a drought in the U.S. Stockpiles in Indonesia may total 4 million tons, twice as much typically estimated, according to Godrej International Ltd., which forecast a rise in Malaysian reserves to a record. That may cut prices and hurt profits at companies such as Golden Agri-Resources Ltd. (GGR), the second-biggest planter. “September exports will gain because of lower duty,” said Joko Supriyono, secretary-general of the Indonesian Palm Oil Association. “Output will pick up as activities resume after the Eid al-Fitr holidays in August,” said Supriyono, who’s also a director at PT Astra Agro Lestari. (AALI) The association, which doesn’t issue stockpile and production figures, will release export data for August in the last week of this month.

Export Tax
Palm-oil futures closed 1.4 percent lower at 2,948 ringgit ($946) a ton on the Malaysia Derivatives Exchange yesterday. Soybeans, which can be crushed to produce a rival oil, reached a record $16.89 a bushel on the Chicago Board of Trade on Sept. 4. Soybean oil was $324.21 a ton more costly than palm, the biggest premium since 2008, data tracked by Bloomberg showed. Indonesia cut its tax on exports to 13.5 percent this month, the lowest rate this year, from 15 percent in August, Deddy Saleh, director general of foreign trade at the trade ministry, said Aug. 29. The base price was lowered to $918 a ton from $950. The country’s exports rose 21 percent to 1.38 million tons in July, the highest level since April, the palm oil association said Aug. 28. That compared with the median estimate of 1.4 million tons in a Bloomberg survey on July 31.
Stockpiles in Malaysia probably climbed 7 percent to 2.14 million tons in August, the highest in 11 months, according to a Bloomberg survey published Sept. 5. Output rose 0.5 percent to 1.7 million tons and exports climbed 9.5 percent to 1.42 million tons, the survey of two analysts and three plantation companies showed. The Palm Oil Board releases the data on Sept. 10. Gains in prices will be curbed because of the reserves, slower economic growth and rising output, Dorab Mistry, a director at Godrej International, told a conference in Singapore yesterday. The tropical oil may trade between 2,900 ringgit and 3,300 ringgit a ton this month and next, he said.

Pro Farmer: After the Bell Soybean Recap (CME)
Soybean futures ventured into positive territory at times today, but bears had control most of the session. Futures ended high-range with fractional to 3 1/2-cent losses in most contracts. Soymeal ended mostly slightly higher while soyoil closed moderately lower. A lack of fresh fundamental news led to additional profit-taking in the soybean market today. Traders expect harvest will soon weigh on the bean market, regardless of the pitiful state of the crop.

Soybean Complex Market Recap(CME)
November Soybeans finished down 1/2 at 1747, 6 3/4 off the high and 21 1/2 up from the low. January Soybeans closed down 1/2 at 1745 3/4. This was 21 1/2 up from the low and 5 1/2 off the high. December Soymeal closed up 3.1 at 528.1. This was 8.6 up from the low and 1.7 off the high. December Soybean Oil finished down 0.59 at 57.38, 0.78 off the high and 0.24 up from the low.
November soybeans struggled to find support throughout the day and settled slightly lower into the close. Soybeans found marginal support midday after the US Dollar turned lower and wheat surged to new session highs. However, a better than expected private estimate for the 2012/13 soybean yield and production triggered profit taking last night, and the pressure leaked over to today's session. Basis remains weak in domestic markets and steady to weaker in the Gulf of Mexico. Some traders are expecting farmers to sell new crop bushels right away due to the historically high futures levels. Underlying support continues to come from thoughts that current price levels have not rationed demand and on the assumption that while soybean plants look good from the road, recent crop tours have suggested that pod counts are very low.

U.S. soy at 1-week low on harvest pressure; wheat firms (Reuters)
Chicago soybeans lost more ground on Thursday, sliding to a one-week low as the start of the U.S. harvest weighed on prices amid reports of rains improving yields of the late planted crop.

U.S. soybean futures eased further from record highs as harvesting got underway amid hopes rain may salvage some drought-hit soy crops in the United States. (Reuters)

Malaysian crude palm oil futures fell to a 3-week low as traders booked profits after U.S. soybeans dropped from a record high and a leading industry analyst warned of a looming supply glut of the tropical oil. (Reuters)

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