Tuesday, January 8, 2013

20130108 1059 Soy Oil & Palm Oil Related News.

Soybean Complex Market Recap (CME)
January Soybeans finished up 22 3/4 at 1411 3/4, equal to the high and 30 3/4 up from the low. March Soybeans closed up 19 3/4 at 1387. This was 30 up from the low and 2 1/2 off the high.
January Soymeal closed up 10.3 at 408.5. This was 10.5 up from the low and equal to the high.
January Soybean Oil finished up 0.08 at 49.5, 0.38 off the high and 0.18 up from the low.
March soybeans traded a wide range on the day seeing both sides of the unchanged but ultimately closed sharply higher into the closing bell. Thoughts that demand is beginning to shift to South America from the US favors the bear camp along with the mostly favorable weather conditions. Support was found from technical short covering ahead of Friday's USDA report after sharp losses last week. Brazil will see light showers this week with the exception of Northeast Brazil which is trending too dry at the moment. A local analyst increased their production estimate for Brazil to 83.11 million tonnes vs. 83 in December. The USDA is estimating production at 81 million tonnes. Argentina looks drier to start the week but temperatures are expected to back off to more normal levels. Export Inspections fell in line with market estimates this morning but the shipment pace is certainly beginning to ratchet lower. Shipments were reported at 39.7 million bushels vs. 35.5 last week. Inspections needed each week to reach this crop years USDA export estimate are now 15.4 million bushels, down from 16.1 last week. Cumulative shipments are 60.5% of the USDA estimate vs. the 5 year average of 47%.

EDIBLE OIL: Malaysian palm oil futures dropped to a 2-week low, its third consecutive fall, as investors remained cautious ahead of the release of export data this week which will provide clues about the demand outlook for the edible oil. (Reuters)

VEGOILS-Palm oil falls to 2-week low, demand outlook uncertain BOZ2 DBYF3 FCPOc3 - RTRS
07-Jan-2013 18:23
Traders await MPOB and USDA data due later this week Prices on track for third straight session of loss Palm oil to drop further to 2,407 ringgit -technicals Indonesia palm exports seen up as much as 9 pct in 2013 -industry
(Updates prices, adds detail)
By Chew Yee Kiat
SINGAPORE, Jan 7 (Reuters) - Malaysian palm oil futures dropped to a 2-week low on Monday, its third consecutive fall, as investors remained cautious ahead of the release of export data this week which will provide clues about the demand outlook for the edible oil.
Traders are eyeing shipment data for the first 10 days of January, due out on Thursday, to gauge the impact of Malaysia's zero crude palm oil export tax. The market is also keeping a close watch on any rejected cargoes from China due to its stricter import policy.
Malaysia's inventory levels are expected to edge lower in December due to slower production. Industry regulator, the Malaysian Palm Oil Board (MPOB), will release official stocks and output data also on Thursday.
The U.S. Department of Agriculture (USDA) report on the 2012 U.S. soybean harvest due Friday is also in focus, as a higher soybean production for crushing into soybean oil may shift demand away from palm oil. GRA/
"People are waiting for the MPOB & USDA data releases later this week. Traders are staying on the sideline as palm oil technically faces stress at the 2,500-ringgit mark," said a dealer with a foreign commodities brokerage in Malaysia.
The benchmark March contract FCPOc3 on the Bursa Malaysia Derivatives Exchange closed 1.9 percent down at 2,420 ringgit ($796) per tonne. Prices had earlier fallen to as low as 2,416 ringgit, a level last seen on Dec. 24.
Total traded volume stood at 58,065 lots of 25 tonnes each, more than double the usual 25,000 lots.
Technicals showed that palm oil is expected to fall further to 2,407 ringgit, as a drop from the Jan. 2 high of 2,524 ringgit has yet to end, said Reuters market analyst Wang Tao. (Full Story)
Favourable weather in South America leading to better soybean crop prospects and potentially higher supply of soybean oil could also place further pressure on palm oil prices.
Palm oil exports from Indonesia, the world's biggest producer of the edible oil, may rise by as much as 9 percent this year, a top industry association official said on Monday, as improving global economic conditions boost demand. (Full Story)
In related markets, Brent crude futures slipped towards $111 per barrel on Monday as profit taking and inventory data showing weak fuel demand in the United States offset optimism that the world's biggest economies are on a steady recovery path. O/R
In competing vegetable oil markets, U.S. soyoil for March delivery BOH3 gained 0.2 percent in late Asian trade, lifted by bargain-hunting activities in the soybeans market, which bounced back from a six-week low.
The most active May soybean oil contract DBYcv1 on the Dalian Commodity Exchange closed 0.4 percent lower.

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