Thursday, October 18, 2012

20121018 1002 Soy Oil & Palm Oil Related News.

Palm Oil Increases on Speculation India Buying Before Festivals (Bloomberg)
Palm oil gained on speculation that India, the largest consumer, is buying before the festival season this month and November. The contract for January delivery, which has the largest open interest and volume, rose 0.2 percent to close at 2,471 ringgit ($815) a metric ton on the Malaysia Derivatives Exchange. The most-active contract has lost 22 percent this year, touching a three-year low this month, as demand slowed and reserves rose. The world’s second-most populous country celebrates several religious festivals in October and Diwali in November. Dorab Mistry, a director of Godrej International Ltd., told a conference in Kuala Lumpur yesterday that futures may drop to 2,200 ringgit, the lowest level since November 2009, in the next six weeks as crude oil drops amid a global slowdown.
“There should be some restocking from India ahead of the festival season,” said James Ratnam, an analyst at TA Securities Holdings Bhd. “However, taking into account yesterday’s bearish views at the conference, I don’t think there will be any sustained interest on the upside for today.” Reserves increased to a record 2.48 million tons last month, data from the Malaysian Palm Oil Board show. Mistry forecast a further increase to 3 million tons or more on Jan. 1. India’s crude palm oil imports climbed 32 percent to 722,754 tons in September, while refined purchases fell 22 percent to 111,163 tons, the Solvent Extractors’ Association of India said Oct. 15. Soybean oil for December delivery advanced 0.4 percent to 50.69 cents a pound on the Chicago Board of Trade. Soybeans for November delivery were little changed at $14.955 a bushel.
Palm oil for January delivery lost 0.6 percent to close at 6,884 yuan ($1,101) a ton on the Dalian Commodity Exchange. Soybean oil for delivery in May dropped 0.3 percent to end at 9,188 yuan a ton.

Pro Farmer: After the Bell Soybean Recap (CME)
Soybean futures strengthened into the close to finish 15 1/2 cents higher in the November through March contracts. Deferred months posted slightly lighter gains. Meal and soyoil saw spillover strength. Price action in the bean pit was rather lackluster much of the day, but late-session buying -- tied to weakness in the U.S. dollar index and recognition of the tight supply situation -- kicked in to produce a strong close.

Soybean Complex Market Recap (CME)
November Soybeans finished up 15 1/2 at 1509 1/4, 2 off the high and 22 up from the low. January Soybeans closed up 15 1/2 at 1508 1/4. This was 22 up from the low and 1 3/4 off the high.
December Soymeal closed up 1.9 at 454.7. This was 4.5 up from the low and 1.2 off the high.
December Soybean Oil finished up 0.56 at 51.03, 0.06 off the high and 0.74 up from the low.
The soybean market traded modestly higher through midday but bids began to pick up in the last hour and November soybeans ended the day with double digit gains. Outside markets were steady to slightly positive for the commodity complex with stocks mixed on the day but the US Dollar was sharply lower. Soybean cash bids were mostly flat across the Midwest with harvest wrapping up in the west but substantial activity remains in the east. Some traders suggest that new farmer sales are slowing as some wait and hope for a $17.00 cash price. Additional support in futures came from consistent demand from China and in anticipation of a positive export sales report tomorrow. A fair amount of pressure was seen early on as traders took profits and on news that South American weather looks favorable this week and next with scattered showers expected to cover areas of Brazil in the next 5 days. Argentina will dry down this week before rainfall returns next week which should also be beneficial to row crop conditions.

EDIBLE OIL: Malaysian palm oil futures slipped after analysts expected the market to fall further on high stocks although traders were betting on the edible oil's big discount to competing soyoil to spur demand. (Reuters)

Wed Oct 17, 2012 6:31am EDT
* Palm oil stuck in rangebound trade
    * Widening discount to soyoil could shift demand to palm
    * Palm oil neutral in 2,361-2,528 ringgit range -technicals

 (Recasts, updates prices)
    By Anuradha Raghu
    KUALA LUMPUR, Oct 17 (Reuters) - Malaysian palm oil futures
ended higher in rangebound trade on Wednesday, as rising exports
offset analyst expectations that the market will fall further on
high stocks.
    Palm oil futures have lost 22 percent so far this year,
prompting top analyst Dorab Mistry to forecast at a conference
on Tuesday that prices could fall to 2,200 ringgit in the next
four to six weeks on a record build-up in Malaysian stocks.

    But exports in the first half of October have climbed as
much as 16.3 percent from a month ago, signalling strong buying
interest from the likes of the European Union and Pakistan, data
from a cargo surveyor showed.
    "The market is digesting all the news and views spoken
yesterday, it will remain rangebound until more is known about
demand," said a trader with a local commodities brokerage in
    The benchmark January contract on the Bursa
Malaysia Derivatives Exchange edged up 0.2 percent to close at
2,471 ringgit ($814) per tonne, after trading in a tight range
of 2,456-2,489 ringgit.
    Total traded volumes stood at 44,600 lots of 25 tonnes each,
higher than the usual 25,000 lots.
    Technical analysis showed that palm oil remained neutral,
trapped in a range of 2,361-2,528 ringgit per tonne, said
Reuters analyst Wang Tao.
    Another trader with a foreign commodities brokerage in
Malaysia said the upcoming U.S. presidential elections have made
global investors more cautious.
    On Tuesday, U.S. President Barack Obama and Republican rival
Mitt Romney clashed repeatedly on jobs and energy.
    While market reaction in Asia has been muted, U.S. investors
are likely to focus on the outcome as it gives an idea on the
kind of economic and financial policies that may come into play
after the polls.
    "The U.S markets are quiet because of the presidential
election next month, so people are watching carefully. That's
why the (palm oil) market can't move," the Malaysian trader
    Palm oil mostly takes its cues from U.S. soyoil and Brent
crude, as it competes with the edible oil for food demand and
the crude oil grade for use in the energy sector.
    Brent crude oil fell on Wednesday as lingering worry about
the global economy overshadowed relief that Spain avoided a
ratings downgrade and optimism prompted by firm U.S. corporate
    U.S. soyoil for December delivery inched up 0.4
percent in late Asian trade after earlier losses on expectations
of higher soybean supplies in the Americas.
   The most active January 2013 soybean oil contract on
the Dalian Commodity Exchange closed 0.1 percent higher.

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