Soy product futures inched lower in choppy trade, as prices consolidated in unison with price action in soybeans. The absence of fresh demand news allowed futures to retreat from initial gains in step with beans. December soyoil settled 0.12 cents or 0.2% lower at 49.63 cents a pound. December soymeal ended $0.10 or 0.03% lower at $337.70 a short ton. (Source: CME)
FAO Food Index Hits 27-Month High On Cereals, Soybeans (Source: CME)
The United Nations Food and Agriculture Organization Tuesday revised up its monthly food price index to a 27-month high due to increases in global cereals, sugar and soybean prices. The index now stands at 197.13, up 4.4% from September and the highest since July 2008. Dry weather in the U.S., lower-than-expected corn yields, China's voracious demand for soybeans and tight sugar inventories have helped to push up prices of agricultural commodities across the board, and they are unlikely to ease this month. The FAO index is a monthly measure of changes in international prices of a basket of commodities and is closely tracked by analysts and investors as a global benchmark for food price trends.
The FAO food price index is inching towards the record high of 213.5, reached in June 2008. Adverse weather, either too dry or too wet, has affected major producers and exporters around the world, from Russia and Ukraine to Canada and the U.S., Germany, Australia, Pakistan and Southeast Asia. The Cereals Price Index rose to a 25-month high of 219, up 5.1% from August, and the Sugar Price Index was up 8.4% to a record 344.6. The Oils and Fats prices index rose 10% to 217.5. The chances of the Food Price Index declining in November aren't very good due to concerns over the dry weather in the U.S. and planting patterns in Russia, said Abdolreza Abbassian, secretary of the FAO's Intergovernmental Group for Grains.
Private forecasters are indicating that U.S. corn production estimate for 2010-11 may be revised lower again as actual yields could be below current projections, he said. In October, the U.S. Department of Agriculture revised the country's corn output estimates down sharply to 321.7 million tons from 334 million tons. The next monthly report is due next week. The U.S. is the world's largest exporter of corn. Another cause of worry is that the farmers in Russia may switch over to planting oilseeds due to government restrictions on exports of grains, Abbassian said. There is strong domestic demand for wheat, but if a switch towards planting oilseeds happens, global wheat prices could go up further, he said.
Palm oil above 3,100 rgt on weather, crude oil
KUALA LUMPUR, Nov 2 (Reuters) - Malaysian palm oil futures hit a new 27-month high on Tuesday and breached a key 3,100 ringgit level on concerns a strong monsoon season will hit yields and on support from higher crude oil.
"Palm oil is continuing its upward trend on market talk that the monsoon season for October to December may be worse than expected because of La Nina," said a trader with a foreign commodities brokerage.
China MofCom ups Oct soy imports to 4.5 mln T
BEIJING, Nov 2 (Reuters) - - China's commerce ministry has revised upwards its estimate for October soy imports to 4.5 million tonnes, from earlier estimate of 4.15 million tonnes.
The ministry said on Tuesday it expects the world's largest soy importer to bring in 4.6 million tonnes of the oilseed in November.
FC Stone lowers estimates of U.S. corn, soy crops
CHICAGO, Nov 1 (Reuters) - Commodity brokerage firm FC Stone said on Monday it cut its estimate of the U.S. 2010 corn crop to 12.523 billion bushels, with an average yield of 154.1 bushels per acre.
The figures were down from Stone's October corn production estimate of 12.891 billion, with a yield of 159.2 bpa.
Brazil planted soy area jumps to 29 pct - Celeres
SAO PAULO, Nov 1 (Reuters) - Planting of Brazil's 2010/11 (Sept/Aug) soybean crop climbed to 29 percent of the expected area by Oct. 29, down from the 35 percent planted a year ago but ahead of historical planting rates for this time of year, grain analysts Celeres said on Monday.
Growers in the world's No.2 soybean producer after the United States have struggled with late rains in the early planting center-west. Overall, the country managed to make a 12 percentage point jump from the 17 percent planted the prior week.
Malaysia's Kulim 2010 profit to grow on palm
KUALA LUMPUR, Nov 2 (Reuters) - Malaysian planter Kulim expects profits for FY 2010 to be "much higher" than last year's 146 million ringgit ($47.17 million), driven by its expansion into Papua New Guinea (PNG) and a rally in palm oil prices.
Profits ending Dec. 31 would also benefit from the sale of an oleochemical plant to Singapore's Wilmar for $140 million, Kulim's Chief Operating Officer Zulkifli Ibrahim told Reuters in an interview on Tuesday.
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