ITS FCPO export down 0.4% to 395,015 tonnes for the period of 1~10 Oct 2010.
SGS FCPO export down 0.2% to 382,828 tonnes for the period of 1~10 Oct 2010.
MPOB Official Data for the month of Sep 2010
Export up 21.16%
Stock up 0.2%
Output down 2.7%
Soy product futures surged to their respective daily trading limits in unison with soybeans. The bullish implications of tighter soybean supplies helped propel both soyoil and soymeal. Soyoil futures garnered support from bullish export forecasts, while soymeal was pulled higher by corn and bullish outlooks for domestic feed demand. December soyoil settled 2.50 cents or 5.7% higher at 46.62 cents per pound. December soymeal ended $20.00 or 6.8% higher at $316.20 per short ton.(Source: CME)
Crop Report 'Shocker' Ripples Through Agriculture Sector (Source: CME)
Government forecasters slashed their estimates for the U.S. corn harvest Friday, with the prospect of tighter supplies triggering a surge in futures prices and a rally in shares across the agribusiness sector. The U.S. Department of Agriculture forecast lower yields from what is still expected to be the third-largest harvest on record, but carry-out stocks are projected to be below the symbolic level of one billion bushels. Futures on corn, soybeans and wheat all rose to their daily trading limits, while shares in tractor makers and fertilizer producers soared on the prospect of higher farm incomes. The food and meat sectors saw sharp slides in share prices because of higher animal feed and raw material costs. USDA shaved a record 6.7 bushels per acre from last month's corn-yield estimate, and now projects 155.8 bushels an acre from the national harvest. The consensus among analysts was for 159.9 bushels an acre.
"Shocker may be an understatement," said Jason Britt, president of Central State Commodities, a Kansas City brokerage. "It's very out of character for the USDA to lower the corn yield so much." The USDA was projecting a record corn crop as recently as August, but farmers have been disappointed as the harvest progressed. The plants suffered from excessive early-season rains that washed away nitrogen, a crucial nutrient. Crops also were stressed by unusually hot overnight temperatures during the summer. Other agricultural commodities followed corn higher. Wheat and soybeans surged in part because both, like corn, serve as an animal feed. Livestock futures also climbed because feed is a major cost for producers. "This is a very tight balance sheet we now have to live with for a long time," said Sal Gilbertie, lead manager of the Teucrium Corn Fund, an exchange-traded fund based on corn futures.
CF Industries Inc. the fertilizer maker, led the rally in agribusiness stocks with Monsanto Co. Deere & Co. surging as well. Meat processors, including Tyson Foods Inc. and Smithfield Foods Inc.. were hit hard, with investors concerned about rising costs and a possible challenge to the supply discipline that has helped the sector return to profitability after being buffeted by the 2008 commodity boom. While many traders and analysts could see this year's corn crop yield drifting down to 155 bushels an acre, few expected the USDA to make such an aggressive revision so soon. The U.S. harvest is roughly 50% complete.
Syngenta Developing Drought-Resistant Corn For Asia (Source: CME)
Global crop protection and seed-making company Syngenta AG is developing new drought-resistant hybrids of corn for the Asian market, in order to boost the region's output, company executives said. At a time when severe drought and floods have affected countries as diverse as Russia, Pakistan and Germany, there is a strong need to grow crop varieties to better tackle weather fluctuations and ensure sufficient output. Syngenta has developed heat-tolerant hybrids of corn for the U.S., and its plant breeders there are working with their Asian counterparts to try to transfer those traits to corn varieties grown in tropical and sub-tropical regions, Alejandro Aruffo, the company's head of global research and development, said. Aruffo was speaking on the sidelines of the company's inauguration of a new research facility in Singapore.
Syngenta has identified naturally-occuring genes that can help resist drought in corn grown in the temperate region, and plans to introduce them into the germoplasm of tropical corn varieties, Manny Logrono, Syngenta's head for field-crop product development for Asia Pacific, said. He said the new corn hybrids for the farmlands of Asia may be developed within the next three years. Logrono said the basic objective of developing the new hybrids is to minimize loss of yields during droughts. He said the company will use molecular-marker technology to develop the new hybrids. This technology helps develop better seeds in a shorter time as laboratories identify DNA markers that are associated with desirable traits. "We will develop the new hybrids in an environment of moisture stress and test them in drought-prone areas such as India," Logrono said.
Syngenta in July released new corn hybrids in the U.S. that are able to utilize available moisture more efficiently, resulting in higher yields in drought-stressed, dry-land and limited-irrigation areas of the corn belt. The company developed the hybrids through several years of molecular breeding to identify genes from the corn genome that are responsible for managing water use in corn.
Palm off 26-mth top on China; tight supplies a concern
KUALA LUMPUR, Oct 8 (Reuters) - Malaysian palm oil ended off a 26-month high and other vegetable oil markets edged higher as traders bet China would start to restock after the long holidays at a time of possible tight global supplies.
But some traders turned cautious later in the session after news that India would probably cut down on some vegetable oil imports as rapeseed output jumped in a key producing state.
Rapeseed output jump in key Indian state may cut vegoil imports
NEW DELHI, Oct 8 (Reuters) - Rapeseed output in India's top producing state is likely to jump 45 percent this year, cutting cooking oil import needs by at least 5 percent for the world's top buyer in 2010/11, farm and trade officials said on Friday.
The area under cultivation for rapeseed, the main winter-sown oilseed, is likely rise as good monsoon rains give the soil moisture, improving output from last year when the worst drought in nearly four decades ravaged farms.
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