Monday, December 10, 2012

20121210 1109 Soy Oil & Palm Oil Related News.

ITS CPO export down 2.8% to 504,302 tonnes for the period of 1~10 Dec 2012.

Soybean Complex Market Recap (CME)
January Soybeans finished down 19 at 1472 1/4, 26 off the high and 2 1/4 up from the low. March Soybeans closed down 14 at 1472. This was 2 1/2 up from the low and 21 3/4 off the high.
January Soymeal closed down 7.8 at 442.9. This was 0.9 up from the low and 10.0 off the high.
January Soybean Oil finished down 0.07 at 51.13, 0.25 off the high and 0.37 up from the low.
January soybeans traded sharply lower on the day on weaker outside markets, profit taking, and pressure that spilled over from a sharply lower corn market. Demand from China continues to add a bullish tilt to the market place and the USDA announced this morning that exporters sold 115,000 tonnes of soybeans to China for this crop year. Cash markets are firm in the Midwest and basis has surged in the PNW this week on rumors that up to 6 cargos of soybeans have been sold to China. The market is looking ahead to a large South American crop at the moment which could provide pressure long term. Rainfall in Argentina will back off today and a drier pattern will persist into next week. This should help move the soybean planting pace which is currently estimated at 54% vs. 69% last year. Weather in Brazil remains favorable with a good mixture of light rainfall and sunshine. The USDA currently has Brazil soybean production at 81 million tonnes but some believe the USDA may increase production on next week's report to 81.50 or 82 million tonnes.

EDIBLE OIL: Malaysian palm oil futures closed flat but notched their biggest weekly loss in almost a month amid an uncertain outlook where record high stocks are weighing on prices at the same time as expectations are rising for a pick up in demand. (Reuters)

VEGOILS-Palm oil flat, posts biggest weekly loss in nearly a month
Fri Dec 7, 2012 5:23am EST
(Updates prices, adds details on Commodities Ministry briefing)
    * Benchmark prices set for 3 percent weekly loss
    * Stocks weigh on sentiment, but traders looking at strong
demand as well
    * Biofuel margins on the rise, supporting market

    By Niluksi Koswanage
    KUALA LUMPUR, Dec 7 (Reuters) - Malaysian palm oil futures
closed flat on Friday, but notched their biggest weekly loss in
almost a month amid an uncertain outlook where record high
stocks are weighing on prices at the same time as expectations
are rising for a pick up in demand.
    Palm oil futures have fallen almost 28 percent so far this
year on record stocks and concerns that the euro zone debt
crisis would reining in global growth.
    "Palm oil is stuck," said a trader with a commodities
brokerage in Kuala Lumpur. "It is undervalued as biodiesel
demand has kicked in because of the high margins, but it also
cannot go higher because of high stocks."
    The benchmark February contract on the Bursa
Malaysia Derivatives Exchange settled up 0.04 percent to 2,296
ringgit ($750) per tonne in see-saw trade. The contract
recorded a decline of about 3 percent for the week, its third
straight weekly loss and the steepest fall since Nov. 11.
    Total traded volumes stood at 34,886 lots of 25 tonnes each,
compared to the usual 25,000 lots.
    Malaysian palm oil stocks probably hit a record 2.58 million
tonnes in November, a Reuters survey showed ahead of official
data on Monday, helping the tropical oil widen its discount to
competing Argentine soyoil to $360 per tonne.
    The discount remains unsustainable and will narrow as more
demand shifts to palm oil in the next few months, especially
with wet weather delaying soy plantings and curbing yields in
the world's biggest soyoil exporter Argentina.
    Traders are watching for cargo surveyor data on Malaysia's
Dec. 1-10 palm oil exports on Monday to confirm strong demand as
No.2 edible oil buyer China stocks up before stricter quality
controls on the refined grades come into effect on Jan. 1.
    In addition, export data may be even stronger as Malaysian
planters scramble to exhaust an annual tax-free export quota
totalling 3.5 million tonnes that is set to expire at the end of
    Malaysia's Commodities Ministry will hold a briefing for
refiners on Monday to get feedback on the government's plan to
cut crude palm oil export taxes and completely dismantle the tax
free export quota for the grade, traders said.
    Some planters are asking for the quota to continue until
stocks fall below 2 million tonnes.
    Brent crude steadied above $107 per barrel on Friday, but
prices were headed for their biggest weekly loss in more than a
month on worries about the euro zone economy and a looming
fiscal crisis in the U.S., the world's top oil consumer.
    Despite the decline in oil markets, Singapore gas oil
GO-SIN sells at about $931 per tonne -- a 37 percent premium
to Indonesian crude palm oil used in biofuel.
    In palm oil's competing markets, U.S. soyoil for December
delivery edged up 0.2 percent in Asian trade. The most
active May 2013 soybean oil contract on the Dalian
Commodity Exchange ended almost flat.

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