Tuesday, October 9, 2012

20121009 0939 Soy Oil & Palm Oil Related News.

Palm Oil Exports From Indonesia to Sink Most in Four Months (Bloomberg)
Palm oil shipments from Indonesia, the world’s largest producer, are poised to tumble the most in four months in October because of weak demand from importers. Exports may slump 12 percent to 1.41 million metric tons from 1.6 million tons in September, according to the median of estimates from four plantation executives, a refiner and an analyst compiled by Bloomberg. That’s the biggest drop since June when shipments fell 13 percent. Output may climb to 2.43 million tons from 2.05 million, the survey showed. Stockpiles are about 2.6 million tons, according to three respondents. Palm oil has plunged 21 percent since the end of August as the global slowdown hurt demand for the oil used in everything from candy to biofuel amid an increase in production in Indonesia and Malaysia. Buyers are monitoring prices to see what the export tax will be in November, said Sahat Sinaga, executive director at the Indonesian Vegetable Oil Industry Association.
“The tax will probably decline if the price direction stays the same, by how much we will have to see,” Sinaga said on Oct. 4. Indonesia kept the tax for crude palm oil exports at 13.5 percent in October and will decide the November rate at the end of this month, using average prices in Rotterdam, Kuala Lumpur and Jakarta from Sept. 20 to Oct. 19. For now, the price decline may prompt buyers to renegotiate contracts or defer fresh orders, Sinaga said last week. Some buyers in India, the biggest importer, may default or review contracts as purchases are unprofitable, according to Atul Chaturvedi, chief executive officer of Adani Wilmar Ltd.

Higher Inventories
Stockpiles in Indonesia may be higher than estimated in the survey. Inventories have hovered between 3.5 million tons and 4 million tons since 2010 compared with popular estimates in the range of 1.5 million tons to 2 million tons, said Dorab Mistry, director at Godrej International Ltd., on Sept. 6. Overseas buyers have yet to take about 600,000 tons of crude palm oil piled up in storage tanks at Belawan port and at mills in North Sumatra province, Bisnis Indonesia reported last week, citing Timbas Prasad Ginting, secretary at the local branch of the Indonesian Palm Oil Association. Reserves in Malaysia, the second-largest producer, probably climbed 15 percent in September to a record as production surged and demand slowed. Inventories increased to 2.43 million tons from 2.12 million tons in August, according to the median of estimates from five analysts and two plantation companies compiled by Bloomberg. The previous record was 2.27 million tons in 2008, Palm Oil Board data show.
The contract for December delivery on the Malaysia Derivatives Exchange traded at 2,396 ringgit a ton at 5:18 p.m. today. Futures fell 8.5 percent to close at 2,255 ringgit on Oct. 2, the lowest settlement in almost three years.

Pro Farmer: After The Bell Soybean Recap (CME)
Soybean futures faced pressure throughout the day and ended mid- to low-range with losses of 1/4 to 11 cents through the September 2013 contract; farther deferred months were firmer. Soymeal closed mixed while soyoil ended with slight losses for the day. Today was a quiet news day. Thus, dollar strength allowed bears to take control of the soybean market.

Soybean Complex Market Recap (CME)
November Soybeans finished down 1/2 at 1551, 10 off the high and 13 1/2 up from the low. January Soybeans closed down 3 at 1548. This was 12 3/4 up from the low and 11 off the high. December Soymeal closed up 1.4 at 472.6. This was 6.8 up from the low and 1.5 off the high. December Soybean Oil finished down 0.26 at 50.93, 0.62 off the high and 0.08 up from the low.
November soybeans traded slightly lower into the close while the March 2013 contract saw double digit losses. Soybean oil ended the day lower but soybean meal was able to rally at the closing bell to close in positive territory. Profit taking added a negative tilt to today's price action as outside markets slid lower and the US Dollar moved higher on the day. Underlying support continues to come from a steady appetite of US soybeans from China and the fact that new farmer sales continue to be slow as many await higher prices later this quarter. Many in the market feel harvest was close to 60% complete as of Sunday. Traders reported that bull spreading was active throughout today's session and basis was steady to firm as processors attempt to drum up movement of cash soybeans in the country. Weekend weather in South America was favorable with rainfall in areas of Argentina and Brazil. More precipitation is expected to spread to Brazil soybean growing regions later this week which should benefit early planted crops and ease stress.

EDIBLE OIL: Malaysian palm oil futures closed down 2 percent as traders braced for rising inventory levels, offseting bargain-hunting seen earlier in the market after steep declines last week to a near three-year low. (Reuters)

It was reported that Indonesia and Malaysia had agreed to set up a supply mechanism to stabilise the prices of CPO. Citing Indonesia's Agriculture Minister Suswono, Bloomberg reported that the agreement came following a meeting between him and Plantation Industries and Commodities Minister Tan Sri Bernard Dompok. In a separate report by Reuters, Dompok was quoted as saying that there were two possibilities in Malaysia's cooperation with Indonesia. "First, reducing oil palm plantation expansion. The other possibility is to increase palm oil use (and) consumption in Malaysia by promoting biodiesel usage," Dompok said. Replanting of oil palm that were more than 25 years old in Malaysia, was one way of doing this, Dompok added.It was also reported that Malaysia will consider possible changes to its CPO export tax regime to support falling prices. (StarBiz)

No comments: