Monday, November 19, 2012

20121119 1042 Soy Oil & Palm Oil Related News.

ITS CPO export down 0.1% to 769,087 tonnes for the period of 1~15 Nov 2012.

Soybeans Drop on Slower Chinese Demand; Corn Gains; Wheat Falls (Bloomberg)
Soybeans fell to the lowest in almost five months on reports that China canceled previous purchases as improved planting progress in South America boosted potential for record crops. Corn rose and wheat declined. China, the world’s biggest soybean consumer, canceled 10 cargoes totaling 600,000 metric tons, Commerzbank AG said today in an e-mailed report, citing the country’s National Grain and Oils Information Center. Rain followed by dry, warm weather will aid planting and early crop development the next two weeks in parts of Brazil as dry weather eases flooding in Argentina for sowing, World Weather Inc. said in a report. “Reports of China canceling soybean imports put the market on the defensive,” Chad Henderson, the president of Prime Agricultural Commodities Inc. in Brookfield, Wisconsin, said in a telephone interview. “Right now, there are fewer worries about the potential for record crops in South America.”
Soybean futures for January delivery dropped 1.3 percent to close at $13.8325 a bushel at 2 p.m. on the Chicago Board of Trade, after touching $13.7225, the lowest since June 22. Prices, which reached a record $17.89 in September, fell 4.7 percent this week. Corn futures for March delivery jumped 0.8 percent to $7.31 a bushel on the CBOT. Still, the grain slid 1.5 percent this week, the first drop in three weeks. Wheat futures for March delivery retreated 0.9 percent to $8.5375 a bushel in Chicago. It was the sixth straight decline, the longest slump since September 2011. The U.S. was the leading shipper of all three commodities last year. Corn is the biggest crop, valued at $76.5 billion in 2011, followed by soybeans at $35.8 billion, government figures show. Wheat is the fourth-largest at $14.4 billion, behind hay.

Soybean Complex Market Recap (CME)
January Soybeans finished down 35 3/4 at 1383 1/4, 44 1/2 off the high and -17 3/4 up from the low. March Soybeans closed down 16 at 1368. This was 12 up from the low and 22 1/4 off the high. December Soymeal closed down 5.9 at 424.6. This was 3.7 up from the low and 7.7 off the high. December Soybean Oil finished down 0.41 at 47.05, 0.65 off the high and 0.44 up from the low.
January soybeans closed 18 3/4 cents lower on the day and down 68 cents for the week. The market was down as much as 29 3/4 cents into the pit opening with futures moving down to the lowest level since June 22nd which was about the time that the mid-west turned dry. Weakness in outside market forces, news from China that crushers had cancelled 600,000 tonnes of soybean purchases for December and January delivery and a non-threatening weather outlook for South America into early next week were seen as bearish forces. Impressive demand news has not been enough in recent weeks to slow the active fund selling and the market stayed under pressure even with better than expected weekly sales news. Sales for soybeans came in well above expectations at 559,700 metric tonnes for the current marketing year and 25,500 for the next marketing year for a total of 585,200. As of November 8th, cumulative soybean sales stand at 77.0% of the USDA forecast for 2012/2013 (current) marketing year versus a 5 year average of 56.7%. Sales of 187,000 metric tonnes are needed each week to reach the USDA forecast. Net meal sales came in at 234,600 metric tonnes for the current marketing year and none for the next marketing year for a total of 234,600 which also exceeded expectations. Cumulative meal sales stand at 59.2% of the USDA forecast for 2012/2013 (current) marketing year versus a 5 year average of 38.7%. Sales of 59,000 metric tonnes are needed each week to reach the USDA forecast. Oil sales came in at 21,000 metric tonnes. Sales of 4,600 tonnes are needed each week to reach the USDA forecast. The market saw solid gains off of the early lows as corn prices pushed higher on the day, wheat recovered from the lows and the stock market managed to push higher on the day. December meal closed moderately lower on the day as well and managed to push to the lowest level since July 3rd while December oil closed moderately lower after first challenging Monday's 26 month low.

EDIBLES: Malaysian palm oil futures slipped despite posting a weekly gain of close to 5 percent, as traders booked profits from a large increase in the previous session, and slowing exports squeezed prices. (Reuters)

Golden-Agri issues 1.5 bln rgt Islamic bond in Malaysia
Nov 19 (Reuters) - Singapore-listed Golden Agri-Resources Ltd, the world's second largest palm oil plantation company, has issued its first Islamic bond, or sukuk, in Malaysia worth 1.5 billion ringgit ($488 million).
"The company considers Malaysia the ideal location for the issue given the country's well-established and advanced sukuk market, which is abundant with liquidity, coupled with its familiarity with the palm oil industry," Golden Agri said in a statement to the Singapore stock exchange on Monday.
The Islamic medium-term notes, part of a 5 billion ringgit program established earlier this month, will have a tenor of five years and mature in Nov 2017. The notes were priced at 4.35 percent.
Golden Agri said proceeds would go towards general corporate purposes, while the issuance would boost financial flexibility by readying the company for future growth.
Golden Agri, which has yet to achieve its internal target for hectarage expansion this year, may use some of the funds raised to buy new land, a company director told Reuters on Nov. 9 (Full Story:nL3E8M83DW).
Shares in Golden Agri added 1.7 percent to S$0.61 as of 0124 GMT. ($1 = 3.0715 Malaysian ringgits) (Reporting By Al-Zaquan Amer Hamzah; Editing by Richard Pullin)

VEGOILS-Palm oil edges down as slowing exports weigh
Fri Nov 16, 2012 5:27am EST
* Malaysia's Nov. 1-15 exports down 0.1 pct on month -ITS
    * Prices post weekly gain, snap two weeks of losses
    * Palm oil faces resistance at 2,447 ringgit -technicals

 (Updates prices)
    By Chew Yee Kiat
    SINGAPORE, Nov 16 (Reuters) - Malaysian palm oil futures
slipped on Friday, despite posting a weekly gain of close to 5
percent, as traders booked profits from a large increase in the
previous session, and slowing exports squeezed prices.
    Futures posted on Wednesday their sharpest daily gain since
October 2010, moving off a near 3-year low struck on Monday.
Malaysian financial markets were closed on Tuesday and Thursday
for the Hindu festival of Diwali and the Islamic New Year.
    "The market came down a bit as there was some
profit-taking," a trader with a foreign commodities brokerage in
Malaysia said, adding that prices seemed to be trading in a
broad range of 2,300 to 2,500 ringgit. "Exports were also down
and that could be another reason."
    The benchmark February contract on the Bursa
Malaysia Derivatives Exchange fell 1.3 percent to close at 2,429
ringgit ($791) per tonne. For the week, prices posted a gain of
4.9 percent, snapping two straight weeks of losses.
    Total traded volumes stood at 31,623 lots of 25 tonnes each,
higher than the usual 25,000 lots.  
    Palm oil faces a resistance at 2,447 ringgit per tonne, a
break above which will lead to a further gain to 2,588 ringgit,
Reuters market analyst Wang Tao said.
    Exports of Malaysian palm oil products for Nov. 1 to 15 fell
0.1 percent to 769,087 tonnes from 769,534 tonnes for the Oct.
1-15 period, cargo surveyor Intertek Testing Services said on
    That came as a disappointment after exports rose as much as
22 percent for the Nov. 1-10 period from a month ago, although
some traders traced the slowdown to a slew of holidays this
    Slowing exports may put pressure on Malaysia's record
stocks, which hit 2.51 million tonnes in October, missing
expectations for 2.67 million.
    Market players are also closely monitoring a French proposal
of a fourfold tax increase on palm oil in food, which stirred
opposition from foodmakers and industry groups in top producers
Indonesia and Malaysia.    
    Brent futures hovered around $108 a barrel on Friday, as
uncertainties surrounding the global economic outlook weighed on
prices, and a showdown between Israel and the Palestinians
stoked worries about supply.  
    In other vegetable oil markets, U.S. soyoil for December
delivery fell 1 percent in late Asian trade. The most
active May 2013 soybean oil contract on the Dalian
Commodity Exchange closed down 1.6 percent.    

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