Wednesday, December 12, 2012

20121212 1009 Soy Oil & Palm Oil Related News.

Soybean Complex Market Recap (CME)
January Soybeans finished down 2 3/4 at 1472, 15 3/4 off the high and 7 3/4 up from the low. March Soybeans closed down 4 1/4 at 1471 1/4. This was 7 1/2 up from the low and 15 off the high.
January Soymeal closed up 3.2 at 448.1. This was 4.6 up from the low and 3.0 off the high.
January Soybean Oil finished down 0.95 at 50.2, 1.06 off the high and 0.05 up from the low.
January soybeans traded modestly lower on the day following a slightly supportive Supply and Demand report. The sharply lower trade in wheat weighed on the grain complex throughout the session. The USDA pegged US soybean ending stocks at 130 million bushels vs. 140 in November and against trade expectations of 130. The USDA managed to increase domestic crush demand by 10 million bushels and exports were left unchanged from last month. World ending stocks for the 2012/13 season came in at 59.93 million tonnes as compared 60.02 million tonnes in last month's estimate and against trade estimates of 59.41. The USDA left Brazil production, Argentina production and China supply/demand numbers unchanged from last month. In addition, the USDA announced a sale of 115,000 tonnes of soybeans to China for 2012/13 delivery just after the report was released. Basis in the Gulf of Mexico held firm on the drop in futures which could mean additional export sales were made today. South American weather remains mostly favorable in Brazil and Argentina is expected to dry down which should improve the soybean planting pace.

EDIBLE OIL: Malaysian palm oil futures ended lower as traders priced in record stocks in the world's second-largest producer of the edible oil. (Reuters)

VEGOILS-Palm oil closes lower as record stocks weigh
Tue Dec 11, 2012 5:15am EST
* Latest Malaysian data pointing to record stocks negative
for prices
    * Traders hoping for higher shipments on quota, Chinese
 (Updates prices)
    By Chew Yee Kiat
    SINGAPORE, Dec 11 (Reuters) - Malaysian palm oil futures
ended lower on Tuesday, as traders priced in record stocks in
the world's second-largest producer of the edible oil.
    Malaysia's palm oil inventory level climbed for the fourth
straight month to a record 2.56 million tonnes in November,
weighing on futures that were headed for the worst annual
performance since the 2008 financial crisis.
    "We view the latest inventory data negatively as high stocks
should keep crude palm oil prices at distressed levels of below
2,500 ringgit per tonne for an extended period well into 2013,"
Alan Lim Seong Chun, research analyst with Malaysia's Kenanga
Investment Bank, said in a note to clients.
    The benchmark February contract on the Bursa
Malaysia Derivatives Exchange lost 0.9 percent to close at 2,292
ringgit ($750) per tonne. Prices traded in a range of 2,283 to
2,324 ringgit.
    Total traded volumes stood at 38,386 lots of 25 tonnes each,
much higher than the usual 25,000 lots.
    On the weather front, an absence of El Nino disrupting
production could lead to even higher palm oil supplies and pile
more pressure on record high stocks, while the latest export
data also failed to lift investor sentiment.
    Malaysian exports fell 2.8 percent for the first 10 days of
December from a month ago, said cargo surveyor Intertek Testing
Services. Another cargo surveyor, Societe Generale de
Surveillance, reported a 0.4 percent rise for the same period.
    But traders are hoping for higher shipments in the next few
weeks as planters rush to finish their annual tax-free export
quota that expires the end of December and as Chinese buyers
stock up before the implementation of a stricter quality
requirement on edible oil from next year.
    In a bullish sign for palm oil, Brent crude oil rose to
around $108 a barrel on Tuesday as a slightly weaker dollar and
Middle East unrest supported prices, but stalled fiscal talks in
the United States capped gains.
    In other vegetable oil markets, U.S. soyoil for January
delivery fell 0.3 percent in late Asian trade. The most
active May 2013 soybean oil contract on the Dalian
Commodity Exchange closed 0.1 percent lower.  

Malaysia crude palm oil export tax seen at zero for Jan
SINGAPORE | Tue Dec 11, 2012 7:05am EST
Dec 11 (Reuters) - Malaysia will set a tax rate for the export of crude palm oil for January by using the average sales price from Nov. 10 to Dec. 9 as the reference price, a government source said, a level that analysts said could result in zero tax.
The new tax rate comes under a plan approved by the world's second-largest palm oil producer in October to cut crude palm oil (CPO) export taxes as it tries to claw back market share from top producer Indonesia.
Under the new structure, January export taxes are likely be set at zero, given that the average CPO price from Nov. 10 to Dec. 9 fell below the lowest reference price of 2,250 ringgit ($740) per tonne, Maybank Investment Bank said in a research note on Tuesday.
This would help Malaysian exporters ship as much CPO as possible to reduce a record stockpile of 2.56 million tonnes in November.
The government will announce the tax levy on the 15th of every month using Malaysian Palm Oil Board prices for reference and will formalise the January tax in a gazette set to be issued on Dec. 17, said the source, who declined to be identified because he is not authorised to speak to the media.
Malaysian exporters have been concerned that the new tax mechanism could spark a tax war with Indonesia, although the world's largest palm oil producer said it was resisting pressure to change its export tax system in response to Malaysia's planned tax cuts, a junior minister said on Tuesday. ($1 = 3.0595 Malaysian ringgit) (Reporting By Chew Yee Kiat; Editing by Jane Baird)

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