Thursday, November 1, 2012

20121101 1007 Soy Oil & Palm Oil Related News.

Soybean Complex Market Recap (CME)
November Soybeans finished up 13 1/4 at 1547, 8 off the high and 15 1/2 up from the low. January Soybeans closed up 12 1/4 at 1548 3/4. This was 13 3/4 up from the low and 10 off the high. December Soymeal closed up 6.2 at 482.2. This was 6.9 up from the low and 5.3 off the high. December Soybean Oil finished up 0.07 at 50.16, 0.43 off the high and 0.32 up from the low. November soybeans traded sharply higher on the day after a weaker trade in the morning session due to 500 deliveries overnight. Financial markets re-opened today and this, along with some month end short covering added to the positive tilt of the market. Basis in the Gulf of Mexico was steady to firm midday and US exporters reportedly sold 25,000 tonnes of US soybean oil to China for 2012/13 delivery. Heavy rainfall in Southern Brazil and Argentina have some analysts suggesting that delays to corn planting could shift more acreage to soybeans while others claim the rain is so severe that soybean acreage losses should already be factored in. The Rosario Grain Exchange estimates that farmers are expected to plant 19.5 million hectares of soybeans this season which is up 3.7% from last season. A report overnight from a South American analyst stated that Argentina could lose up to 10% of their overall soybean production due to the violent storms. A substantial cut in South American soybean production could be a supportive factor long term.

EDIBLE OIL: Malaysian palm oil futures inched down as the strongest exports recorded for this year may do little to cut into high stocks at a time when output is surging in the world's second largest producer of the edible oil. (Reuters)

VEGOILS-Palm slips as high exports may do little to cut stocks
Wed Oct 31, 2012 6:25am EDT
* Palm oil prices capped by high production and growing
stockpile -analyst
    * October exports up 9.3 pct -SGS
    * Indonesia will not change its policy tax structure
    * Palm oil's target adjusted to 2,468 ringgit -technicals

 (Updates prices, adds SGS exports data)
    By Anuradha Raghu
    KUALA LUMPUR, Oct 31 (Reuters) - Malaysian palm oil futures
inched down on Wednesday as the strongest exports recorded for
this year may do little to cut into high stocks at a time when
output is surging in the world's second largest producer of the
edible oil.
    Cargo surveyor data showed that Malaysian palm oil shipments
in October climbed to about 1.6 million tonnes -- the highest
this year, although stocks are set to hit another record beyond
2.48 million tonnes.
    "Based on the shipment number, we will still end up with a
higher stockpile because October's production is still very
high," said OSK Research analyst Alvin Tai. "Exports rising
higher month-on-month is not surprising, but the quantum still
needs to be stronger."
    The benchmark January contract on the Bursa
Malaysia Derivatives Exchange closed 0.2 percent lower at 2,496
ringgit ($819) per tonne. Total traded volumes stood at 28,495
lots of 25 tonnes each, slightly higher to the usual 25,000
    Technicals showed that the bearish target of 2,379 ringgit
per tonne for Malaysian palm oil has been adjusted to 2,468
ringgit based on its falling speed, said Reuters market analyst
Wang Tao.
    Palm oil dropped to a two-week low earlier this week after
its biggest rival and top producer Indonesia planned to lower
monthly export taxes in November after international prices fell
this month.
    The lower taxes will lift margins for Indonesians and shift
demand away from competing Malaysian products. Officials in
Jakarta said they will not alter their tax structure which is
aimed at driving its domestic palm oil downstream industry.
    "The export tax structure is progressive and it has been
adjusted to fluctuated palm oil prices in the international
market," director general of agriculture-based industry Benny
Wachjudi said at an industry meeting.
    "It is very different from the Malaysian government's export
tax policy. I am sure Malaysian export tax policy will not last
long because it is not adjusted to the development on palm oil
prices in the international market."
    Brent crude held steady near $109 a barrel on Wednesday
after the huge storm Sandy whiplashed the U.S. East Coast,
reducing fuel demand even as refineries in the region gradually
resumed operations.
    U.S. soyoil for December delivery inched up 0.7
percent in late Asian trade. The most-active May 2013 soybean
oil contract on the Dalian Commodity Exchange rose 0.7

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