Wednesday, January 2, 2013

20130102 1007 Soy Oil & Palm Oil Related News.

Soybean Complex Market Recap
January Soybeans finished down 5 1/4 at 1418 3/4, 15 off the high and 9 1/4 up from the low. March Soybeans closed down 9 at 1409. This was 8 1/4 up from the low and 16 1/2 off the high.
January Soymeal closed down 7.1 at 420.6. This was 0.6 up from the low and 9.2 off the high.
January Soybean Oil finished up 0.22 at 49.16, 0.01 off the high and 0.82 up from the low.
March soybeans traded 14 cents lower midday but managed to climb off session lows late in the session but still closed in negative territory. Early weakness was linked to speculative profit taking but buying support showed up in the corn and wheat markets midday which helped to lift soybeans prices. The market saw mixed demand side data this morning with the USDA reporting new soybean sales but export inspections were hardly inspiring. The USDA announced this morning that US exporters sold 140,000 tonnes of US soybeans to an unknown destination for the 2012/13 marketing year. Demand for US soybeans remains robust but the pace of shipments is beginning to slow which is helping to offset. Inspections for the week ending December 27th totaled 35.5 million bushels vs. 44.5 last week. This was the lowest weekly inspection estimate since September 20th of this year. Shipments needed each week to reach this crop years USDA export estimate are only 16.2 million bushels, down from 16.6 last week. South American weather remains favorable for most areas. Central and Southern Brazil continues to see light showers while the northeastern region is trending slightly drier. Argentina was dry over the weekend and the pattern is set to remain in place for most of this week.

EDIBLE OIL: Malaysian palm oil futures fell weighed by lower exports although losses were limited by expectations that heavy rains in the world's No.2 producer may disrupt production and bring down record high stocks. (Reuters)

VEGOILS-Palm slips, set to post worst annual loss since 2008
Mon Dec 31, 2012 12:34am EST
* Futures down 22 pct since start of year, steepest loss
since 2008
    * Malaysia's December exports down 5.7 pct -ITS
    * Malaysia's new tax structure in focus for 2013 -trader
    * Malaysia's weather office upgrades heavy rain warning from
yellow to orange stage

 (Updates prices, adds details)
    By Chew Yee Kiat
    SINGAPORE, Dec 31 (Reuters) - Malaysian palm oil futures
fell on Monday, weighed by lower exports although losses were
limited by expectations that heavy rains in the world's No.2
producer may disrupt production and bring down record high
    Palm oil is on track to notch its worst annual performance
since the financial crisis in 2008, losing more than one-fifth
thanks to high stocks and a sluggish global growth that has
dented edible oil demand.
    For the coming year, traders are watching the impact of
Malaysia's zero export tax for crude palm oil in January and a
stricter import rule for edible oil to be enforced by China, the
world's second-largest edible oil buyer.
    "Malaysia's new export duty will be tested. There are more
concerns on the tax structure because it is now an even
playground for both countries (Malaysia and Indonesia)," said a
dealer with a foreign commodities brokerage in Malaysia.
    "I foresee an even fiercer price competition."
    Malaysian cargoes are still likely to be cheaper as it set
the January export tax rate at zero compared to Indonesia's 7.5
    By the midday break, the benchmark March contract
on the Bursa Malaysia Derivatives Exchange had lost 1 percent
percent to 2,471 ringgit ($808) per tonne.
    Prices hit a high of 2,515 ringgit per tonne on Friday -- a
level last seen on Nov. 2, prompted some traders to book profits
soon after.
    Total traded volumes stood at 18,786 lots of 25 tonnes each,
higher than the usual 12,500 lots.
    Malaysian palm exports during December fell 5.7 percent to
1,568,510 tonnes from 1,663,092 tonnes a month ago, said cargo
surveyor Intertek Testing Services on Monday.  
    Another cargo surveyor Societe Generale de Surveillance will
issue exports data for the same period later in the day.

    Concerns of heavy rains in Malaysia disrupting supply
persisted after the weather office upgraded its warning on
Monday from yellow to orange stage for key producing states such
as Pahang and Johor.    
    Brent crude was steady above $110 per barrel on Monday on
concerns over the U.S. fiscal crisis that could erode fuel
    In competing vegetable oil markets, U.S. soyoil for March
delivery rose 0.2 percent in early Asian trade. The most
active May soybean oil contract on the Dalian Commodity
Exchange had gained 0.4 percent by the midday break.  

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