Friday, November 2, 2012

20121102 0918 Soy Oil & Palm Oil Related News.

Soybeans Rise on Improving Demand for U.S. Supplies; Corn Falls (Bloomberg)
Soybeans rose for a third straight day on speculation that planting delays in South America will boost demand for supplies from the U.S., the world’s biggest exporter. Corn declined the most in a week. Much of Argentina, the largest shipper of soy-based animal feed, has received about four times the normal rainfall during the past two months with another storm expected Nov. 7, QT Weather in Chicago said in a report. China, the top soybean consumer, may boost imports after manufacturing growth improved last month. “The planting delays in Argentina are a growing concern and leading to consumers buying ahead in case the situation continues to deteriorate,” Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview. “The Chinese economy is showing signs of improvement and should increase soybean imports.”
Soybean futures for January delivery gained 0.7 percent to close at $15.60 a bushel at 2 p.m. on the Chicago Board of Trade. The oilseed fell 3.3 percent in October, after rains pared yield losses in the U.S. caused by the worst drought since 1956. Corn futures for December delivery slid 0.6 percent to $7.51 a bushel on the CBOT, the biggest drop since Oct. 25. Prices have retreated 12 percent since touching a record $8.49 on Aug. 10 as demand slowed from meat and fuel producers. Corn is the biggest U.S. crop, valued at $76.5 billion in 2011, followed by soybeans at $35.8 billion, government figures show.

Soybean Complex Market Recap (CME)
November Soybeans finished up 11 1/2 at 1558 1/2, 11 3/4 off the high and 11 3/4 up from the low. January Soybeans closed up 11 1/4 at 1560. This was 12 up from the low and 11 1/2 off the high. December Soymeal closed up 2.1 at 484.3. This was 2.0 up from the low and 5.7 off the high. December Soybean Oil finished up 0.27 at 50.43, 0.48 off the high and 0.33 up from the low. January soybeans closed moderately higher on the session but still well down from the highs. The market was trading 17 cents higher into the mid-session which is about 5 cents off of the overnight highs as mixed outside market forces kept trade a bit choppy and the market continued to trend lower into the close which was near 12 cents off of the highs. Strong meal prices in Europe, a strong stock market and firm trade in energy was offset by weakness in gold and a firm US dollar. Continued hefty deliveries against the November contract was seen as a slight negative but this has been offset by firm cash markets and a lack of producer selling at the tail end of harvest. South America weather is considered mixed as current weather is too wet in southern Brazil and Argentina for planting while production areas of central and northern Brazil are still in a stressful period of hot and dry weather. Into next week, however, cooler and wetter weather is expected for central and northern Brazil and drier and warmer weather for the previous wet areas in the south. Traders see Brazil production at a record high 81 million tonnes this coming season (same as the USDA) as compared with 66.5 million this past season. Continued talk of a stronger US economy in China plus talk that China was a more active buyer of US soybeans this week helped to provide underlying support. Traders see weekly export sales for release in the morning near 625,000 tonnes as compared with 207,300 necessary each week to reach the USDA projection and from 522,200 tonnes last week. Brazil exported 906,900 tonnes of soybeans in October as compared with 1.68 million in September and from 1.41 million tonnes last year.

INTERVIEW-Possible removal of EU palm import tax may hurt planters (Reuters)
Small farmers growing oil palms in Papua New Guinea may be less inclined to stick to costlier eco-friendly practices if Europe abolishes an import tax only for green palm oil that has previously lifted prices of such cargoes.

EDIBLE OIL: Malaysian palm oil futures climbed as strong Chinese demand for soybeans fuelled expectations for more edible oil orders in the weeks to come. (Reuters)

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