Wednesday, October 31, 2012

20121031 1001 Soy Oil & Palm Oil Related News.

ITS CPO export up 10.9% to 1,600,545 tonnes for the period of 1~31 Oct 2012.
SGS CPO export up 9.3% to 1,567,112 tonnes for the period of 1~31 Oct 2012.

Pro Farmer: After the Bell Soybean Recap (CME)
Soybean futures closed 5 to 6 3/4 cents higher through the September contract. That was in the lower portion of today's range. Soybean futures were supported by short-covering today amid ideas Monday's sharp losses were overdone. Additionally, talk of Chinese demand sifted through the market on a light news day.

Soybean Complex Market Recap (CME)
November Soybeans finished up 6 1/2 at 1533 3/4, 14 1/2 off the high and 8 up from the low. January Soybeans closed up 6 3/4 at 1536 1/2. This was 8 1/4 up from the low and 14 1/2 off the high. December Soymeal closed up 3.5 at 476.0. This was 4.2 up from the low and 6.7 off the high. December Soybean Oil finished down 0.09 at 50.09, 0.46 off the high and 0.03 up from the low.
November and January soybeans were as much as 19 cents higher midday but fell off session highs and ended the day with single digit gains. Strong international demand, firm cash markets, and a lower US Dollar all helped to support. December soybean meal surged just nearly 2% in the early trade which led soybeans and oil higher. Outside markets were relatively stable today following yesterday weather developments in the northeast but US trading desks were still closed for many big banks and funds which left the trade rather choppy and thin. Gulf of Mexico bids were steady on the day after a stronger tone yesterday which offset some of the sharply lower trade in futures. Offsetting the higher trade was a weather forecast for South America that was more favorable. Weather watchers are hopeful that a drier pattern will begin to develop this week in Argentina while showers are set to move into parched areas of Northern Brazil later this week and into the weekend.

EDIBLE OIL: Palm oil futures fell to a near 2-week low as lower November export taxes in top producer Indonesia may shift demand away from competitor Malaysia and investors fret over a slowing global economy. (Reuters)

VEGOILS-Palm oil drops to 2-wk low on Indonesia tax, U.S. storm
Tue Oct 30, 2012 6:12am EDT
* Futures market falls again on Indonesia's export tax cut
    * Investors wary of macroeconomic uncertainties, raging U.S.
    * Prices stay choppy in a range of 2,430-2,600 ringgit
    * Palm oil's target of 2,379 ringgit unchanged -technicals

 (Updates prices)
    By Anuradha Raghu
    KUALA LUMPUR, Oct 30 (Reuters) - Palm oil futures fell to a
near 2-week low on Tuesday as investors feared lower November
export taxes in top producer Indonesia could shift demand away
from competitor Malaysia while  fretting over a slowing global
    Prices of the edible oil also came under pressure from
weaker Brent crude as Sandy, one of the worst storms to hit the
United States in years, shuttered U.S. refineries, curbing
energy demand in the world's largest economy and weighing on
other commodity markets.
    "At the moment, we don't see any supportive news for palm
oil. Prices are likely to stay choppy in a range of 2,430 to
2,600 ringgit," said Phillip Futures analyst Ker Chung Yang in
    "The tax cut will hurt Malaysia's palm oil prices as
Indonesia's palm oil becomes more competitive in the near
future. Malaysian players will certainly hope that the
government will do more to counter such an act from Indonesia."
    The benchmark January contract on the Bursa
Malaysia Derivatives Exchange slid 1.8 percent to 2,501 ringgit
($820) per tonne after dropping as low as 2,491 ringgit, a level
unseen since Oct. 18.
    Total traded volumes stood at 33,602 lots of 25 tonnes each,
higher than the usual 25,000 lots.
    Palm oil prices may still target 2,379 ringgit per tonne, as
a rebound from the Oct. 3 low of 2,230 ringgit has been
completed and a preceding downtrend has resumed, said Reuters
market analyst Wang Tao.
    Brent crude hovered above $109 a barrel on Tuesday due to
the storm, and analysts expect weaker crude oil to weigh on the
whole commodities asset class.
    In other vegetable oil markets, U.S. soyoil for December
delivery inched up 0.2 percent in early Asian trade. The
most-active May 2013 soybean oil contract on the Dalian
Commodity Exchange fell 0.3 percent.

China, India should cut tariff to boost green palm oil demand-RSPO
By Chew Yee Kiat
SINGAPORE | Tue Oct 30, 2012 6:26am EDT
Oct 30 (Reuters) - The world's largest edible oil buyers China and India should reduce import tariff to spur demand for eco-friendly palm oil, industry body Roundtable on Sustainable Palm Oil (RSPO) said on Tuesday.
Formed in 2004, the RSPO brings together plantation firms, consumers and green groups to promote the supply of palm oil produced from estates that do not harm wildlife or cut forests to expand.
Take up of more expensive green palm oil has been dominated by the European Union, with price-sensitive India and China with their billion-plus populations slow to order cargoes, said RSPO President Jan-Kees Vis.
"You would only need to shave a tiny proportion from the import tariff in order to make CSPO (certified sustainable palm oil) competitive with non-certified palm oil," Vis told reporters at the sidelines of the RSPO meeting in Singapore.
India and China account for almost 30 percent of global palm oil consumption in 2011, according to the U.S. Department of Agriculture data, making them key in RSPO's campaign to get more plantations to produce eco-friendly cargoes.
"Both markets are very price sensitive, and even though the sustainability premium is not high, any premium is a problem," Vis said.
A lower import tariff for green palm oil could attract producers to grow more sustainable palm oil, which currently has an annual output capacity of about 6 million tonnes -- roughly 12 percent of global palm oil production.
Chinese import duty for edible vegetable oils is at 9 percent, and 2 percent for industrial palm oil use. For India, there is no duty on CPO imports, while the refined palm oil attracts a duty of 7.5 percent.
But Vis, who is also the global director of sustainable sourcing development at Anglo-Dutch consumer goods giant Unilever , said the RSPO had to work with local industry players to push for these tariff cuts.
"If we as the RSPO board walk into the government office in New Delhi, I don't even think they will grant us an interview. So we have to work with the local players," Vis said.
Talks are in progress to convince the Chinese government to consider the proposal, but Vis said that the process could be a long one.
"We are working with the Chinese chamber of commerce for food and agricultural products. They are supporting the sustainable palm oil network in China," Vis said. "We're trying to get it into the next five-year plan."

VEGOILS-Palm oil ends lower, Indonesia tax cut weighs
Mon Oct 29, 2012 6:18am EDT
* Traders book profits from 1-month high after Eid al-Adha
    * Indonesia to cut crude palm oil export tax to 9 pct in Nov
    * Palm oil to fall to 2,379 ringgit -technicals
    * Coming Up: Malaysia Oct. palm oil exports; Wednesday

 (Updates throughout)
    By Chew Yee Kiat
    SINGAPORE, Oct 29 (Reuters) - Malaysian palm oil futures
dropped on Monday after a long weekend break, as losses in other
vegetable oil markets during the holiday and an export tax cut
by Indonesia prompted traders to book profit.
    Last Friday, U.S. soyoil lost 1 percent while the
China soyoil contract edged down 1.4 percent. Malaysian
financial markets were closed for the Eid al-Adha holiday.
    Selling pressure also mounted after the midday break on news
that Indonesia, the world's top palm oil producer, would cut its
palm export tax for November, a move that could hamper demand
for Malaysian products.
    Indonesia will cut the export tax to 9 percent, down from
13.5 percent in October, and lower the export tax for refined
palm olein to 3 percent in November from 6 percent in October.
    "Part of the fall is due to the market catching up after the
holiday. The significantly lower export duty by Indonesia also
put some pressure on prices," said a trader with a foreign
commodities brokerage in Malaysia.
    The benchmark January contract on the Bursa
Malaysia Derivatives Exchange slid 2.4 percent to close at 2,540
ringgit ($831) per tonne.
    Total traded volumes stood at 36,345 lots of 25 tonnes each,
higher than the usual 25,000 lots.  
    Palm oil prices rose to a near 1-month high at 2,615 ringgit
last Thursday, after cargo surveyors reported higher Malaysia's
palm exports for Oct. 1-25 compared to a month ago.
    Traders will be looking for more trading cues from the
full-month exports figure for October on Wednesday.
    Technicals were bearish as a bullish target at 2,676 ringgit
per tonne has been aborted, and a target at 2,379 ringgit has
been established, said Reuters market analyst Wang Tao.
    Brent crude oil fell below $109 a barrel on Monday as
refineries along the U.S. East Coast wound down operations ahead
of the approach of Hurricane Sandy, reducing crude use in the
world's largest oil consumer.
    In other vegetable oil markets, U.S. soyoil for December
delivery edged down 0.7 percent in late Asian trade. The
most-active May 2013 soybean oil contract on the Dalian
Commodity Exchange closed 1.4 percent lower.

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