Wednesday, November 7, 2012

20121107 0952 Soy Oil & Palm Oil Related News.

Soybean Complex Market Recap (CME)
November Soybeans finished up 12 1/2 at 1516 3/4, 9 off the high and 11 up from the low. January Soybeans closed up 12 1/4 at 1515 1/2. This was 13 up from the low and 7 1/2 off the high. December Soymeal closed up 3.7 at 472.7. This was 3.7 up from the low and 1.5 off the high. December Soybean Oil finished up 0.36 at 48.68, 0.3 off the high and 0.33 up from the low. January soybeans saw double digit gains into the closing bell as traders positioned ahead of this Friday's USDA report. Outside markets were positive on the day which added to the risk on tone of the market. Traders noted that volume was light as most investors were waiting for the results of the election today. Expectations for a bearish USDA report this Friday along with thoughts that weather in South America was trending more favorable triggered another round of long liquidation yesterday but the market continues to deal with strong demand from China and a tightening world balance sheet before South America harvest begins in 2013. The trade believes the average US soybean yield may increase to 38.15 bushels per acre vs. the current USDA estimate of 37.8. Production is expected to increase by close to 30 million bushels although many traders feel demand may offset the entire rise in production due to the staggering pace of exports. This could be supportive to soybean prices in the long term.

EDIBLE OIL: Malaysian palm oil futures fell to the lowest in almost one month dropping for a third straight session, as concerns over rising stockpiles and uncertainty ahead of the U.S. elections weighed on prices. (Reuters)

VEGOILS-Palm oil extends losses, drops to 1-mth low; US elections eyed
Tue Nov 6, 2012 5:45am EST
* Prices fall to 2,370 ringgit, weakest since Oct. 8
    * Market weighed by stockpile concerns, U.S. elections
    * Palm oil to rebound to 2,470 ringgit -technicals

 (Updates throughout)
    By Chew Yee Kiat
    SINGAPORE, Nov 6 (Reuters) - Malaysian palm oil futures fell
to the lowest in almost one month on Tuesday, dropping for a
third straight session, as concerns over rising stockpiles and
uncertainty ahead of the U.S. elections weighed on prices.
    Inventory levels in Malaysia - the world's No.2 palm oil
producer - may climb to 2.67 million tonnes in October,
surpassing previous month's record at 2.48 million tonnes, a
Reuters survey showed on Tuesday.
    Industry regulator the Malaysian Palm Oil Board (MPOB) will
issue October stocks data on the coming Monday.
    "Everybody is looking at the MPOB number that is expected to
reach 2.7 million tonnes, and the market is reacting badly to
that," said James Ratnam, an analyst with Malaysia's TA
    The benchmark January contract on the Bursa
Malaysia Derivatives Exchange fell 1.6 percent to close at 2,372
ringgit ($775) per tonne, just off its intraday low at 2,370
ringgit, the weakest since Oct. 8.
    Total traded volumes stood at 34,020 lots of 25 tonnes each,
higher than the usual 25,000 lots.
    Prices had edged up briefly before the midday break as an
almost 5 percent drop over the last two trading sessions lured
buyers. Worries that year-end floods in Malaysia could hit
supplies also checked losses.
    "So far I have not heard of any big impact from floods. This
is still a very early stage. The flood usually happens at the
end of the year, and depending on the strength, it could disrupt
supply and support prices."
    Traders also remained cautious ahead of the U.S. elections.
    President Barack Obama and Republican challenger Mitt Romney
were essentially deadlocked on election eve, polls show, raising
concerns of a cliffhanger delaying the outcome and roiling
markets, as it did during the extended presidential battle in
    Technicals showed palm oil could stage a rebound to 2,470
ringgit as a fall from the Oct. 25 high of 2,615 ringgit has
temporarily ended, said Reuters market analyst Wang Tao.

    In related markets, Brent crude held over $107 per barrel on
Tuesday, as uncertainty ahead of the U.S. elections and renewed
worries about Greece and the euro zone crisis headed traders'
    Other vegetable oil markets recovered from the previous
day's losses. U.S. soyoil for December delivery edged up
0.9 percent in late Asian trade, while the most active May 2013
soybean oil contract on the Dalian Commodity Exchange
inched up 0.1 percent.    

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