Monday, November 5, 2012

20121105 0957 Soy Oil & Palm Oil Related News.

Soybean Complex Market Recap (CME)
November Soybeans finished down 31 1/2 at 1527, 31 off the high and 2 1/4 up from the low. January Soybeans closed down 33 1/4 at 1526 3/4. This was 2 1/2 up from the low and 33 1/4 off the high. December Soymeal closed down 8.4 at 475.9. This was 0.4 up from the low and 8.3 off the high. December Soybean Oil finished down 1.17 at 49.26, 1.37 off the high and 0.15 up from the low. January soybeans closed 33 1/4 cents lower on the session and down 37 cents for the week. The market turned sharply lower into the pit opening as a bearish and "risk off" tone emerged from hedge funds with the market down 22 cents into the mid-session. After bullish and "risk on" news over employment, very few commodity markets saw much is the way of support. The surge in the US dollar continued after the news was release but gold and crude oil turned sharply lower on the day and a general long liquidation selling trend emerged from fund traders. Talk that China crush margins are sluggish and ideas that the South America weather is shifting from threatening weather of the past week to improving crop condition weather for the next week helped to pressure. Central and Northern Brazil weather is cooling with more rain for the region and southern Brazil and Argentina looks to receive relief from the wet pattern over the next week which could boost planting progress. Weekly export sales for soybeans came in at 741,200 metric tonnes for the current marketing year and 19,400 for the next marketing year for a total of 760,600 which was higher than expected. Cumulative soybean sales stand at 74.8% of the USDA forecast for 2012/2013 (current) marketing year versus a 5 year average of 51.7%. Sales of just 195,000 metric tonnes are needed each week to reach the USDA forecast. Meal sales came in at 73,200 metric tonnes which was below trade expectations. Cumulative soybean meal sales stand at 52.8% of the USDA forecast for 2012/2013 (current) marketing year versus a 5 year average of 33.6%. Sales of 66,000 metric tonnes are needed each week to reach the USDA forecast. Oil sales came in at 28,500 metric tonnes. Sales of 6,000 metric tonnes are needed each week to reach the USDA forecast. Aggressive long liquidation selling in a wide range of commodity markets appears to be the key negative force today. Talk of the potential for higher yields for next week's report helped to pressure the market as well.

EDIBLE OIL: Malaysian palm oil futures edged down and were on track to post a weekly loss, as investors remained cautious on market expectations of record-high stocks in October. (Reuters)

India Must Tax Palm Oil Imports to Aid Farmers, Godrej Says (Bloomberg)
India, the biggest palm oil buyer, needs to impose a duty on imports to protect oilseed growers from cheaper overseas supplies as a surge in inventories in Southeast Asia lowers prices. India should levy a tax of 10 percent on crude palm oil, Dorab Mistry, director at Godrej International Ltd., said in New Delhi today. Palm oil comprises almost 80 percent of India’s cooking-oil imports. Palm oil, used in everything from biofuels to candy to noodles, has fallen 21 percent this year as inventories surge in Indonesia and Malaysia, which account for 87 percent of world supply, and a global economic slowdown curbs demand. The plunge may cut revenues for producers including Sime Darby Bhd. (SIME) and IOI Corp. (IOI) and cap increases in food costs.
“The government should impose a duty on imports of crude palm oil to protect farmers and use the money in long-term development of oilseed cultivation,” said Davish Jain, managing director of Prestige Group of Industries, one of India’s biggest processors of soybean and exporters of soybean meal. “Unbridled imports would be counter-productive for the growth of indigenous oilseed production.” Palm oil for January delivery dropped 1.6 percent to 2,496 ringgit ($817) a metric ton on the Malaysia Derivatives Exchange in Kuala Lumpur on Nov. 2. Inventories jumped to an all-time high of 2.48 million tons in September, while output gained to 2 million tons, according to the Malaysian Palm Oil Board.

Optimistic Scenario
Cooking-oil imports by India, the second-largest buyer, are set to surpass 10 million tons for the first time after dry weather damaged India’s oilseed crops and as demand climbs, GG Patel & Nikhil Research Co. Managing Partner Govindlal G. Patel said in September. Purchases may gain 5.4 percent to 10.3 million tons in the year ending Oct. 31 from about 9.78 million tons a year earlier, said Patel, who’s traded cooking oils for more than three decades. Mistry outlined what he described as an optimistic scenario for an importing nation in 2013. Indonesia and Malaysia will have record stockpiles of palm oil at the beginning of next year, while production of soybeans will climb in the first quarter of 2013 in South America along with excellent harvests of sunflower in Argentina and mustard in India, said Mistry, who has traded palm oil for 35 years. This may be followed by a switch in some plantings from corn to soybeans in the U.S., he said.

No comments: