Soybean Complex Market Recap (CME)
January Soybeans finished down 5 1/2 at 1431, 17 off the high and 8 3/4 up from the low. November Soybeans closed down 11 3/4 at 1285 1/4. This was 2 1/2 up from the low and 15 3/4 off the high.
January Soymeal closed up 2.1 at 414.0. This was 3.3 up from the low and -2.1 off the high.
January Soybean Oil finished up 0.18 at 51.49, 0.17 off the high and 0.57 up from the low.
March soybeans traded lower on the day despite explosive export sales data this morning. Net weekly export sales for soybeans came in at 1,608,800 tonnes for the current marketing year and 180,000 for the next marketing year for a total of 1,788,800. The USDA also reported that US exporters sold 240,000 tonnes of soybeans to an unknown destination for the 2013/14 crop year. Sales of only 117,000 tonnes are needed each week to reach the USDA forecast. Net meal sales came in at 236,100 tonnes for the current marketing year and 9,000 for the next marketing year for a total of 245,100 tonnes. Sales of 45,000 tonnes are needed each week to reach the USDA forecast. Net oil sales came in at 12,900 tonnes for the current marketing year and sales of 8,000 tonnes are needed each week to reach the USDA forecast. Strong demand from international buyers continues to add support to the market but an expected record crop in Brazil could limit gains long term. A private analyst in Brazil raised their production forecast for Brazil to 84 million tonnes, up 900,000 tonnes from their prior estimate and vs. the USDA forecast of 82.5 million tonnes.
Palm oil inventories in Indonesia will probably rise to almost 90%of capacity as exports from the largest grower drop after Malaysia set its tariff at zero and as China imposed more stringent rules on shipments. Stockpiles may gain to 3.5m metric tons in January from 3.25m tons in December, according to the median of estimates from two plantation companies, a refiner and an analyst compiled by Bloomberg. Shipments may decline 0.6% to 1.54m tons, while production is seen stable at 2.5 million tons, the medians of estimates from the same four respondents and a third plantation company showed. (Bloomberg)
India Taxes Palm Oil for First Time Since 2008 to Shield Growers (Bloomberg)
India, the world’s biggest cooking oil consumer after China, will tax crude palm oil imports for the first time since 2008 after a slump in prices spurred record shipments, hurting domestic oilseed growers.
Crude palm and soybean oil imports will be taxed at 2.5 percent, while the tariff on purchases of refined cooking oils will be maintained at 7.5 percent, the Agriculture Ministry said in a statement yesterday. The benchmark price for calculating the tariff will be changed for the first time since 2006 on all cooking oils on a fortnightly basis, the government said in another statement on its website.
The taxes may cut Indian imports, boosting palm oil inventories in Indonesia and Malaysia, the world’s largest producers, and pressure futures in Kuala Lumpur. Futures will trade between 2,300 ringgit ($763) and 2,600 ringgit a metric ton until February, keeping inventories high, Dorab Mistry, director at Godrej International Ltd., said Nov. 30.
“Crude palm oil demand from Indian refiners are probably going to decline and the extent may not be significant because palm oil is still far cheaper than alternatives,” said Ben Santoso, an analyst at DBS Group Holdings Ltd. in Singapore. “We expect prices to remain range-bound until at least May, when demand normally picks up again.”
Futures for delivery in April fell 2.1 percent to 2,379 ringgit ($792) a ton yesterday on the Malaysia Derivatives Exchange, the most at close in more than a week. The most-active contract has rebounded 7.3 percent after slumping to a three- year low of 2,217 ringgit on Dec. 13.
EDIBLE OIL: Malaysian palm oil futures fell after India imposed an import duty on crude palm oil imports, a move that could hurt demand and leave stocks near record highs. (Reuters)