20101014 0912 Soy Oil & Palm Oil Related News.

Soy product futures ended mixed, with soyoil rising on the unwinding of meal/oil spreads. Strength in world vegoil markets and strong export demand are underpinning features for soyoil, analysts said. Soymeal was pressured by spillover weakness from corn futures. Corn and soymeal are linked, as both are feed ingredients for the livestock industry. December soyoil settled 0.63 cents or 1.3% higher at 47.58 cents per pound. December soymeal ended $4.10 or 1.2% lower at $329.00 per short ton. Speculative fund buying was estimated at 4,000 lots in soyoil, while fund selling was pegged at 2,000 lots in soymeal.(Source: CME)

Rain Seen Returning To Brazil's Top Soy Region (Source: CME)
Heavy rain in Brazil's top soy-producing region next week is expected to give a boost to delayed planting of the new 2010-11 crop. Planting has been delayed in many areas of Brazil's center-west soy belt that includes Mato Grosso, the country's top soy-producing state, due to insufficient rainfall in recent months caused by the La Nina weather phenomenon, which typically brings drier weather than usual. News of the pending rain in Mato Grosso and neighboring soy-producing states, such as Goias, comes as soybean prices on the Chicago Board of Trade have been propelled to reach around 14-month highs this week on concerns of smaller U.S. supplies and strong export demand.
Uncertainties about supplies in South America's output also helped to spark recent rising prices as traders factored in the possibility of weak harvests due to dry weather in top producers such as Brazil, the world's No. 2 soy producer after the U.S. Soybean futures for November delivery, the most active contact, were trading down 0.04% to $11.78 a bushel on Wednesday. "Although light rain was insufficient for planting in September and early October, Mato Grosso should see seven days of widespread rain from Oct. 20 for seven days," Celso Oliveira, a meteorologist at private weather service Somar said. The rainfall in Mato Grosso and north Goias state will reach an accumulation of around 80 millimeters Oct. 20-27, he said.
This would be adequate for planting as farmers typically need some 60 to 80 millimeters to provide adequate soil moisture for their beans to grow. Farmers in Mato Grosso are typically the first to begin planting in mid-September, which means they can harvest and sell their beans ahead of rival neighboring states. This year, however, farmers in Parana--the country's second-largest soy-producing state--have managed to plant earlier than farmers in Mato Grosso. Local agricultural consultancy Celeres on Monday said farmers in Mato Grosso had planted only 3% of their soy area as of Oct. 8 compared to 12% a year earlier, while farmers had planted 9% of the Parana soy area, versus 10% a year earlier.
Oliveira said that a slight decrease of 10% to 20% lower rainfall will douse Mato Grosso in November. "As this level of rainfall is only slightly lower than historic levels, it isn't a problem for agriculture," Oliveira said, noting that the months ahead are typically wet. In Parana, farmers have seen good rainfall since September, he said. "Rain so far isn't a problem in the south," he said.

CBOT Corn Futures May Rise To $6/Bushel Next Few Days - Executives (Source: CMe)
Corn futures on the Chicago Board of Trade may rise to $6 a bushel within the next few days due to large-scale covering of short positions, but will likely pull back around that level, trading executives and analysts said. "There is still upside potential in corn futures because investors continue to buy back short positions," Koname Gokon, deputy general manager at commodity brokerage Okato Shoji Co.'s research division, said. He said immediate resistance for CBOT December corn futures is at $5.90/bushel, then $6/bushel. At 0843 GMT, December corn contract traded at $5.88/bushel.

U.S corn hits new 2-yr high, wheat gains
MILAN, Oct 13 (Reuters) - Chicago corn futures hit fresh  two year highs and helped push wheat prices higher on continued support from last week's bullish U.S. government report and bolstered by weakness in the U.S. dollar.
"The corn situation remains at the centre of concerns and speculation," a European trader said. "There exists the will to go and test the $6 threshold."

China soyoil off 25-mth high on reserve sale plans
KUALA LUMPUR, Oct 13 (Reuters) - Soyoil futures in China ended off 25-month highs hit earlier on news that the government will release vegetable oil reserves next week to rein in the recent run-up in prices.
"Above 9,000 yuan is a ceiling for soyoil as the government will release state reserves to control prices, and vegetable oils buyers may purchase rapeseed instead of soyoil," said an oil analyst in China's major soy producing province, Heilongjiang.

China to sell 300,000 T rapeseed oil reserves next week
BEIJING, Oct 13 (Reuters) - China is going to release 300,000 tonnes of rapeseed oil from state reserves next week as part of efforts to tame rising vegetable oil prices in the runup to national holiday early next year, according to an official announcement issued on Wednesday.
The sales will be held on Oct 20, according to the notice posted on the National Grain & Oil Trade Centre ( www.grainmarket.com.cn ), but it did not mention the sales of soyoil reserves.

China Sept soy imports at 4.64 mln T-Customs
BEIJING, Oct 13 (Reuters) - China, the world's largest soy buyer, imported 4.63 million tonnes of the oilseed in September, down 2.7 percent from August, but a rise of 68.5 percent from a year-ago period, official Customs figures showed on Wednesday.
The September figure brings China's total imports in 2009/2010 (Oct/Sept) marketing year exceeding 50 million tonnes, a record volume or a rise of 22 percent from the previous year following an ongoing expansion of the crushing industry.

Argentina says to resume soyoil exports to China
BUENOS AIRES/BEIJING, Oct 12 (Reuters) - Exporters in Argentina are set to resume shipments of soyoil to China after the Asian giant lifted a six-month de facto ban on soyoil imports from the South American country, the Argentine government said on Tuesday.
China effectively barred imports from the world's top supplier of the edible oil at the end of March amid a wider trade dispute, restating quality standards that traders described as impossible to meet in practice.