Soy product futures ended mostly higher, up in tandem with advances in soybeans. Soymeal was underpinned by solid domestic demand amid poultry and pork population numbers rising above last year's levels, analysts said. Soyoil futures rose, but larger than expected soyoil stocks reported in the Census Bureau's Sept soy crush report, a healthy soyoil yield and China turning back to Argentina for vegoil supplies limited advances, said Dan Basse, president AgResource Company in Chicago. Dec soyoil settled 0.10c or 0.1% higher at 49.70 cents a pound. Dec soymeal ended $0.40 or 0.1% higher at $336.30 a short ton. (Source: CME)
Fall In Corn Production Weighs On IGC Grain Outlook (Source: CME)
World grains markets are expected to tighten in the 2010-11 season as consumption outpaces supply for the first time in four years, the International Grain Council said. While the IGC said wheat production is expected to hit 644 million metric tons in 2010-11--leaving its previous estimate unchanged--worsening prospects for corn crops in the U.S. and China are expected to lower world production. While still a record crop, the IGC cut its estimates for 2010-11 world corn output to 814 million tons from a previous forecast of 824 million tons. Corn output from the world's largest producer, the U.S., is expected to total 323 million tons this season, said the IGC, cutting its previous forecast by 11 million tons. China is expected to produce 162 million tons this year, 3 million less than the IGC's September estimate. Declining prospects for the U.S. corn crop has triggered a jump in prices in recent weeks.
A sharp downgrade in government yield estimates caused a mid-month surge in futures, with CBOT March corn now trading at around $5.77 1/4 a bushel. Analysts remain bullish on the prospect for corn markets. "Despite the aggressive cut in U.S. corn yields in the last WASDE report, further declines in yield estimates are likely," said Sudakshina Unnikrishnan at Barclays Capital. Still, demand is expected to remain robust. The IGC increased its corn consumption forecast for by 3 million tons to 840 million tons, up 3% from 2009-10, and said it expects this season's ending stocks to fall to a four-year low of 125 million tons.
Palm oil rebounds on soy, weather
KUALA LUMPUR, Oct 27 (Reuters) - Malaysian palm oil futures rebounded, after two straight days of losses, drawing support from a firmer soy complex and weather concerns.
"October exports could be either plus or minus 2 percent because exports data for the first 25 days showed a 4 percent fall," said a trader in Kuala Lumpur. "It is very hard to predict."
China's soy buying spree to curb vegoil imports
KUALA LUMPUR, Oct 28 (Reuters) - China's soybean imports smash records every year but if the country keeps up last week's pace of buying, its processors will have more than enough to crush into cooking oil, reducing imports of edible oil.
The world's No. 1 food buyer may be rewriting its shopping list at a time when a weaker dollar makes bumper soy crops from the Americas cheaper than processed soyoil from Argentina as well as Malaysian and Indonesian palm oil.
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