Friday, October 12, 2012

20121012 1120 Soy Oil & Palm Oil Related News.

Soybean Complex Market Recap (CME)
November Soybeans finished up 25 1/4 at 1548 1/2, 19 1/2 off the high and 27 1/4 up from the low. January Soybeans closed up 24 3/4 at 1548 1/2. This was 26 3/4 up from the low and 18 1/4 off the high. December Soymeal closed up 9.6 at 472.2. This was 10.4 up from the low and 7.3 off the high. December Soybean Oil finished up 0.7 at 51.33, 0.96 off the high and 0.74 up from the low.
November soybeans traded sharply higher throughout the day and the positive trade followed a USDA report that was considered slightly bullish against traded expectations. The USDA pegged US soybean production at 2.86 billion bushels which was 101 million bushels above trade expectations and compares with the September estimate of 2.634. The initial increase in production was considered bearish but the report also showed an increase in domestic crush demand by 40 million bushels and exports by 210 million bushels to offset the increase in overall supply. This left ending stocks at 130 million bushels vs. traded expectations of 130 million bushels. The average US soybean yield rose to 37.8 bushels per acre vs. trade estimates of 37. Long term support in soybeans comes from consistent demand from China and an explosive export sales pace so far this year. China soybean imports were increased to 61 million tonnes vs. 59.50 in September.

Pro Farmer: After The Bell Soybean Recap (CME)
Soybean futures traded as much as 40-plus cents higher at times today, and the market ended mid- to high-range with gains ranging from the upper teens to the high 30s, with November and January futures around 25 cents higher. After trending lower ahead of this morning's USDA reports, soybeans benefited from corrective short-covering as USDA data confirmed that supplies are very tight and more rationing is needed.

Malaysia OKs plan to cut crude palm oil export tax-govt official (Reuters)
Malaysia has approved a plan to cut crude palm oil export taxes from 23 percent per tonne, a government official said on Thursday, as the world's No.2 producer tries to grab market share from top producer Indonesia.

EDIBLE OIL: Malaysian palm futures rose to their highest in more than a week, as a government plan to cut an export tax on crude palm oil offset record stockpiles and weak exports, while traders took positions ahead of a key U.S. report on demand and supply. (Reuters)

VEGOILS-Palm oil at 1-week high as tax cut trumps high stocks
Thu Oct 11, 2012 6:17am EDT
    By Chew Yee Kiat
    SINGAPORE, Oct 11 (Reuters) - Malaysian palm futures rose on
Thursday to their highest in more than a week, as a government
plan to cut an export tax on crude palm oil offset record
stockpiles and weak exports, while traders took positions ahead
of a key U.S. report on demand and supply.
    Malaysia has approved a plan to slash export taxes from the
current level of 23 percent per tonne and will discuss the size
of the cut on Friday, a government source said.
    The move could boost Malaysia's crude exports and help ease
stockpiles from a record of 2.48 million tonnes in September.
    "We believe that most of the negative news from the high
inventory level has been priced in as crude palm oil prices are
currently at a high discount of $350 per tonne against soybean
oil," said Alan Lim Seong Chun, research analyst with Malaysia's
Kenanga Investment Bank, in a note.    
    The benchmark December contract on the Bursa
Malaysia Derivatives Exchange gained 2.7 percent to close at
2,523 ringgit ($822) per tonne, just off an earlier high of
2,525 ringgit, a level last seen on Oct. 1.
    Total traded volumes stood at 41,253 lots of 25 tonnes each,
far higher than the usual 25,000 lots.
    Technicals showed palm oil faces resistance at 2,503 ringgit
per tonne, a break above which will open the way towards 2,588
ringgit, according to Reuters market analyst Wang Tao.

    Traders are taking positions ahead of the October supply and
demand report by the U.S. Department of Agriculture due at 1230
GMT, which is likely to show a larger U.S. soybean crop than
initially expected.
    A bigger crop of soybeans to be crushed into soybean oil
could shift demand away from palm oil.
    Palm oil stocks hit an all-time high in September, thanks to
record production, but prices are heading for their first weekly
gain after three weeks of losses, further suggesting the sharp
rise in inventory may already have been factored in.
    "The worst may be over, with palm oil production starting on
a seasonal downcycle, which should ease the high stockpile,"
Alvin Tai, an analyst with Malaysia's OSK Investment Bank, said
in a research note.
    "We note that Q4 tends to be the best quarter for both the
palm oil price and plantation stocks."    
    In a bullish sign for palm oil, Brent crude oil headed on
Thursday for its highest close in a month, lifted by escalating
tension between Syria and Turkey, maintenance in the North Sea
and a supply crunch in oil products.
    In other vegetable oil markets, U.S. soyoil for December
delivery was up 1.4 percent. The most active January 2013
soybean oil contract on the Dalian Commodity Exchange
closed 0.2 percent higher.

No comments: