Wednesday, October 17, 2012

20121017 0955 Soy Oil & Palm Oil Related News.

Pro Farmer: After The Bell Soybean Recap(CME)
Soybean futures traded as much as 20-plus cents higher this morning, but this encouraged profit-taking that ultimately resulted in a disappointing finish. Futures ended with gains of just 1 to 4 1/2 cents. Soybean futures initially benefited from corrective short-covering encouraged by ideas the downside has been overdone and a weaker U.S. dollar index.

Soybean Complex Market Recap(CME)
November Soybeans finished up 1 1/4 at 1493 3/4, 21 off the high and 3/4 up from the low. January Soybeans closed up 1 at 1492 3/4. This was 3/4 up from the low and 20 3/4 off the high. December Soymeal closed down 3.3 at 452.8. This was 0.5 up from the low and 9.6 off the high. December Soybean Oil finished up 0.46 at 50.47, 0.27 off the high and 0.46 up from the low. November soybeans saw double digit gains early in the session but ultimately closed nearly unchanged on the day. Soybean meal ended the day lower and oil finished higher. Continued rumors of China buying US soybean cargos this week along with a very positive export inspections report yesterday has kept underlying support in the market. Reports surfaced this morning that showed US exporters sold 110,150 tonnes of soybeans to an unknown destination overnight. Most in the market believe the buyer is China. The robust pace of US exports continues to give a long term, positive outlook to prices. Negative market sentiment continues to weigh on futures this week as weather remains quite favorable in the short term for South America and large funds continue to liquidate long positions. Outside markets added a supportive tilt to market early in the day as the US dollar moved lower and US Stocks were higher but profit taking prevailed and soybeans ended well off session highs.

Brazil soy planting picks up with rain (Reuters)
A cold front that moved into southeastern Brazil over the weekend will also likely bring light rainfall to the country's main soy belt this week as farmers step up planting, local forecaster Somar said on Monday.

EDIBLE OIL: Malaysian palm oil futures ended slightly lower after top industry analysts projected weaker prices and as investors digested news that export tax cuts will only take effect next year. (Reuters)

VEGOILS-Palm oil ends lower as analyst comments weigh
Tue Oct 16, 2012 6:17am EDT
* Prices could drop further, help ease record stocks -top analysts
    * Palm oil neutral in 2,361-2,528 ringgit range -technicals
    * Malaysia palm oil exports higher than month ago

 (Updates throughout)
    By Anuradha Raghu
    KUALA LUMPUR, Oct 16 (Reuters) - Malaysian palm oil futures
ended slightly lower on Tuesday after top industry analysts
projected weaker prices and as investors digested news that
export tax cuts will only take effect next year.
    Palm oil prices have fallen by a fifth since the start of
the year, but they could drop further as stockpiles could reach
as much as 3 million tonnes by the start of 2013, swollen by
strong output and slowing exports, analysts said.
    Adding to concerns over rising stocks was the government's
decision to implement palm oil export tax cut only in January.

    "The market is still trying to get a grip on how big stocks
can get in Malaysia, as well as digesting news that the export
taxes are not going to come through until early January," said
ANZ agricultural commodity strategist Victor Thianpiriya.
    "In the short term, this will probably depress prices a
little bit, as consumers would prefer to wait until January and
potentially source from Indonesia to bridge that gap."
    At the close, the benchmark January contract on the
Bursa Malaysia Derivatives Exchange fell 0.2 percent to 2,466
ringgit ($808) per tonne.
    Total traded volumes stood at 40,889 lots of 25 tonnes each,
much higher than the usual 25,000 lots.
    Technical analysis showed palm oil will be neutral until it
gets out of a range of 2,361-2,528 ringgit per tonne, said
Reuters analyst Wang Tao.
    Palm oil stocks in Malaysia hit a record 2.48 million tonnes
in September, but strong export data in the first 15 days of
October could help support prices.
    Exports of Malaysian palm oil products for Oct. 1-15 rose
13.1 percent to 769,534 tonnes from 680,112 tonnes last month,
cargo surveyor Intertek Testing Services said on Monday.

    Another cargo surveyor Societe Generale de Surveillance
showed exports in the same period surged 16.3 percent to 768,550
    In a bullish sign for palm oil, oil steadied above $115 on
Tuesday, underpinned by supply concerns after the European Union
slapped more sanctions on Iran, while ample supplies and hefty
stockpiles in top consumer the United States capped gains.
    In other vegetable oil markets, U.S. soyoil for December
delivery inched up 0.8 percent in late Asian trade. The
most active January 2013 soybean oil contract on the
Dalian Commodity Exchange ended 1.5 percent higher.

UPDATE 1-EU Commission weakens biofuel rule changes -draft
Tue Oct 16, 2012 2:19pm EDT
* Penalties for biofuels' indirect emissions removed
* New limit on use of crop-based biofuels remains
* Commission to formally present draft rules Wednesday (Adds details from draft proposal, reaction)

By Charlie Dunmore
BRUSSELS, Oct 16 (Reuters) - The European Commission has watered down proposals to reduce the indirect climate impact of biofuels, but is sticking to a strict new limit on the amount of food crops that can be used to make fuel, draft legislation showed.
The late changes mean that fuel suppliers will not, as originally planned, be held accountable for the indirect emissions biofuels cause by displacing food production into new areas, resulting in forest clearance and peatland draining known in EU jargon as ILUC.
"The 5 percent limit is still in, but the ILUC factors are now purely for reporting purposes and not part of the sustainability accounting rules for biofuels," one EU source involved in the discussions said.
The plan to limit use of crop-based biofuels to 5 percent of total EU transport energy demand by 2020 represents a virtual halving of the bloc's current goal, which mandates a 10 percent share of renewables in transport by the end of the decade.
"The share of energy from biofuels produced from cereal and other starch rich crops, sugars and oil crops shall be no more than 5 percent... of the final consumption of energy in transport in 2020," said the draft legislation, seen by Reuters.
A Commission source, who also spoke on condition of anonymity, confirmed that the proposed indirect land use change (ILUC) emission factors for biofuels made from cereals, sugars and oilseeds would carry no legal weight.
As a result, fuel suppliers will be free to continue blending biodiesel made from rapeseed, palm oil and soybeans into their fuels and claiming credit for cutting emissions, despite EU scientific studies showing that overall emissions from biodiesel are higher than from fossil fuel.
Figures in the proposals show that ILUC emissions linked to biodiesel from oilseeds are more than four times higher than those for ethanol made from cereals or sugar.

The changes are a victory for European biodiesel producers who said the Commission's original proposal would have wiped out their industry practically overnight, and who have complained that the scientific models underpinning ILUC calculations are too uncertain.
But the move could harm ethanol producers, who had been expected to increase their share of the EU biofuel market from 20 percent currently, at the expense of dominant biodiesel.
"I don't know what the Commission is thinking," said Rob Vierhout, secretary general of EU bioethanol lobby ePURE. "What will happen is people will walk away from Europe and invest their money somewhere else, because there is no future for the biofuel industry in Europe anymore."
Campaigners who blame biofuels for taking food out of people's mouths for little environmental benefit also criticised the much-delayed proposals.
"We've waited two years, and what we've ended up with is an ILUC proposal from the Commission without any ILUC in it," said Laura Sullivan, European Advocacy Coordinator for anti-poverty campaigners Action Aid.
"With this proposal, European citizens will have no guarantee that the biofuels they put in their cars are actually better for the climate," said Nusa Urbancic, fuels campaigner with green transport campaigners T&E.
The Commission will formally present its proposals on Wednesday, after which the rules must be jointly agreed by EU governments and lawmakers in a process that could take up to two years.

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