Thursday, September 13, 2012

20120913 1022 Soy Oil & Palm Oil Related News.

U.S. Soybean Crop Seen Falling to Nine-Year Low on Drought(Bloomberg)
U.S. soybean farmers will harvest the smallest crop in nine years after June and July were the hottest and driest since 1936, the government said. Prices rose the most in three weeks. Production will drop to 2.634 billion bushels (71.69 million metric tons), down 14 percent from 3.056 billion in 2011 and the lowest since 2003, the U.S. Department of Agriculture said today. The average estimate of 34 analysts polled by Bloomberg News was 2.659 billion bushels. A month ago, the USDA predicted 2.692 billion. Soybean prices are up 45 percent this year, reaching an all-time high last week, as crop conditions deteriorated to the worst since 1988. Output is dropping for a third straight year in the U.S., the largest grower, as demand increases for soy- based livestock feed and vegetable oil in China, where imports are forecast to reach a record for a ninth year.
“We have a huge shortage that is unprecedented and will require higher prices to slow demand,” Jerry Gidel, the chief feed-grain analyst for Rice Dairy LLC in Chicago, said in a telephone interview. “The U.S. beef and dairy industry will have to use less soybean feed to leave enough for the hog and poultry producers the remainder of this year.” Soybeans for November delivery jumped 2.6 percent to close at $17.4575 a bushel at 2 p.m. on the Chicago Board of Trade, the biggest gain since Aug. 21. Prices reached a record $17.89 on Sept. 4.

Pro Farmer: After the Bell Soybean Recap(CME)
Soybean futures rallied sharply today, ending with gains of 43 3/4 to 45 cents in the September through March contracts. Farther deferred contracts posted slightly lesser gains in the mid-20 to mid-30-cent range. USDA's report data was mostly neutral this morning as the 2012 crop estimate and the old- and new-crop ending stocks forecasts were in line with the pre-report guesses.

Soybean Complex Market Recap(CME)
November Soybeans finished up 44 1/4 at 1745 3/4, 4 1/4 off the high and 52 1/4 up from the low. January Soybeans closed up 43 3/4 at 1744 1/2. This was 51 1/4 up from the low and 4 1/4 off the high. December Soymeal closed up 16.2 at 532.1. This was 20.9 up from the low and 1.5 off the high. December Soybean Oil finished up 0.6 at 56.48, 0.36 off the high and 0.8 up from the low.
November soybeans traded sharply higher today and settled near the high end of today's trading range. Soybean meal and oil traded higher as well. The USDA cut the new crop soybean yield to 35.3 bushels per acre, which was down from 36.1 in August and vs. trade estimates of 35.8. Production was revised lower to 2.634 billion bushels vs. trader estimates of 2.657. Total usage was cut by 72 million bushels which put the 2012/13 ending stocks at 115 million bushels which was unchanged from the August estimate. The soybean market surged higher following the report on thoughts that demand will remain robust to finish out this year and higher prices will be needed to slow the pace of exports. Reports that dry weather in northern and central Brazil could delay soybean planting next week added to the positive tone of the market today. Soybean spot basis dropped 15-20 cents per bushel at a processor in Indiana after futures surged and harvest advanced across the Midwest. The US Dollar traded lower for most of the day which offered underlying support to soybeans.

India vegoil imports to rise to 10 mln T for in 2012/13 (Reuters)
India's edible oil imports are likely to rise more than 4 percent to 10 million tonnes in the 2012/13 marketing year as domestic output in the world's top buyer lags rising demand, an industry official said.

EDIBLES: Malaysia crude palm oil futures dipped on expectations of higher production this month could lead to a stock build up although agriculture markets were waiting for a key U.S. report on soybean supply later in the day. (Reuters)

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