Thursday, November 29, 2012

20121129 1010 Soy Oil & Palm Oil Related News.

Soybean Complex Market Recap (CME)
January Soybeans finished down 3 at 1446 1/4, 10 1/2 off the high and 6 1/4 up from the low. March Soybeans closed down 2 1/2 at 1435. This was 7 up from the low and 10 1/2 off the high. December Soymeal closed up 0.6 at 439.9. This was 1.6 up from the low and 3.0 off the high. December Soybean Oil finished down 0.01 at 50.11, 0.09 off the high and 0.45 up from the low.
January soybeans traded slightly lower to finish the day. Oil saw modest losses while meal finished lower on market on close sell pressure. The soybean market traded mostly negative throughout the day after failing to see follow through momentum overnight to the upside. Losses were limited due to strength in the corn and wheat market and also after the USDA reported that US exporters sold 290,000 tonnes of soybeans to China for the current marketing year. The demand picture continues to be robust but the overall weather outlook for South America remains mostly favorable which is adding resistance. Central and northern Brazil continue to see steady precipitation which has improved conditions while Southern Brazil is trending drier but is expected to see an uptick in rainfall. Argentina will see another shot of precipitation at the end of this week followed by a drier weather pattern. Basis in the Gulf of Mexico was steady to slightly weaker nearby but still well above historical levels. Concern that low water levels on the Mississippi River south of St. Louis may slow supply to the Gulf of Mexico is adding support to cash markets.

EDIBLE OIL: Malaysian palm oil futures eased dropping for a second straight session on concerns that U.S. fiscal woes could hamper global economic growth and commodity demand. (Reuters)

European vegoils: Palm oil easier on follow-through selling - RTRS
29-Nov-2012 02:39
ROTTERDAM, Nov 28 (Reuters) - Palm oil on the European vegetable oil market slipped further on Wednesday because of follow-through technical selling on worries over the global economy and prospects for further growth of palm oil stocks. OILS/E
* “The worries over the U.S. economy and therefore the growth of the global economy pressured prices in various markets. Markets closed a touch off the lows on some bargain hunting,” one broker said.
Palm oil was offered between $5 and $12.50 a tonne down from Tuesday after Malaysian palm oil futures closed between 15 and 29 ringgit per tonne down on concerns over the U.S. budget woes that could hamper global economic growth and therefore demand for commodities. 0#FCPO: Jan/March RBD palm olein traded $10 down from Tuesday between $825 and $817.50 a tonne fob Malaysia, April/June changed hands between $850 and $845, also down $10 also. At 1700 GMT CBOT soyoil futures were 0.05 and 0.43 cents per lb down in a technical correction on Tuesday’s gains of more than half a cent. Liquid oils – soyoil, rapeoil and sunoil, were offered between two euros down and seven euros per tonne up from Tuesday following Wednesday’s strong close in CBOT soyoil futures and stronger rapeseed futures. EU rapeoil traded three euros up from Tuesday at 925 euros per tonne fob exmill for Feb/April, May/July fetched between 927 euros, up two euros, Aug/Oct changed hands at 914 and 912 euros and 920 euros was paid for Nov/Jan 2013. Lauric oils were offered between $5 per tonne down and $25 up from Tuesday after Feb/March coconut oil changed hands at $840 a tonne per tonne cif Rotterdam. No deals were reported in palmkernel oil.

Indonesia Poised to Top India as World’s Largest Palm Oil User (Bloomberg)
Indonesia, the world’s biggest producer of palm oil, is set to surpass India as the largest user next year as economic growth boosts demand. Consumption may climb 13 percent to 8.5 million metric tons from 7.5 million tons this year, Indonesia’s Deputy Trade Minister Bayu Krisnamurthi said by text message. That exceeds U.S. government estimates of 7.95 million tons for India and 7.87 million tons for Indonesia in the 2012-2013 year. Rising demand for palm used in everything from instant noodles to candy and fuel may curb exports that rose 2.9 percent in October from a month earlier. The economy expanded at more than 6 percent in the past eight quarters as President Susilo Bambang Yudhoyono raised spending, luring investors such as Unilever (UNA) and L’Oreal SA. Palm use in the world’s fourth most populous country jumped 51 percent in the past four years as wheat climbed about 21 percent and sugar rose about 15 percent, U.S. Department of Agriculture estimates show.
“We’ve seen very strong demand growth from Indonesia,” said Erin Fitzpatrick, a London-based analyst at Rabobank International. “You certainly can see that story continuing,” she said by phone Nov. 27. The country may surpass Germany and the U.K. by 2030 to be the world’s seventh-largest economy, generating $1.8 trillion in sales for agriculture, consumer and energy companies by that year, McKinsey & Co. said in September. McKinsey estimates consumer spending in urban areas will rise 7.7 percent a year to $1.1 trillion by 2030, according to the report.

L’Oreal, Unilever
L’Oreal (OR), the world’s largest cosmetic maker, expects to boost sales in Indonesia by as much as 35 percent in the next five years, Vismay Sharma, the company’s country head, said Oct. 29. The Paris-based company is investing $128 million to build its largest factory globally in West Java province. Unilever plans to spend $150 million building a factory in Sei Mangkei, North Sumatra, that will produce ingredients for soaps and shampoos, said Sancoyo Antarikso, a Jakarta-based director at the unit of the second-largest consumer-goods maker. Consumer-product companies like Unilever and noodle-maker PT Indofood CBP Sukses Makmur (ICBP) will benefit from a government plan to raise minimum wages, according to John Rachmat, an analyst at PT Mandiri Sekuritas, in a Nov. 22 report.
The Jakarta province will increase the minimum by 44 percent to 2.2 million rupiah ($229) a month in 2013 from this year, said Mandiri Sekuritas. East Kalimantan will boost the wage by 49 percent to 1.75 million rupiah, while Papua, the eastern most province, will raise it by 8 percent to 1.71 million rupiah, according to the report.

Blending Rate
Consumption will increase as Indonesia raises the blending rate of palm-based biofuel in petroleum diesel to 7.5 percent from 5 percent, said Sahat Sinaga, executive director of the Indonesian Vegetable Oil Industry Association, said by phone Nov. 27. Demand from oleochemicals is also increasing, he said. Palm-oil refining capacity may climb to more than 30 million tons next year, exceeding output, as companies step up investments following tax changes, Andreas Bokkenheuser, a Singapore-based analyst at UBS AG said last month. Investors are planning $1 billion of investments following the duty reduction, Sinaga said then. Capacity has gained “significantly” this year, said Krisnamurthi on Nov. 27, without specifying the increase.
The government cut taxes in October last year to boost processed exports as it seeks to raise the value of commodity shipments to spur growth and create jobs. Indonesia, which is rich in minerals such as nickel, bauxite and copper, also started a ban on ore exports by some miners in May, with exemption for companies planning smelters. Those shipments are subject to a 20 percent tax.

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