Soy product futures ended mixed, with meal following beans lower on profit taking while soyoil rallied on outside market support. Soyoil futures managed to divorce itself from the negative price theme in the Ag futures, underpinned by spillover strength from crude oil futures and supportive global vegoil demand, analysts said. CBOT Dec soyoil ended 0.55 cents of 1% higher at 53.95 cents a pound, while December soymeal traded $6.90 or 1.9% lower at $355.40 a short ton.(Source: CME)
Brazil's 2010-11 Soy Crop Seen At 67.7M To 69M Tons (Source: CME)
Brazil's second official 2010-11 soybean crop estimate on Wednesday was close to analysts' expectations, and the data is unlikely to spark any aggressive trade in the local market. Brazil's upcoming 2010-11 soy crop was pegged at between 67.7 million metric tons and 69 million tons, which compares with 68.7 million tons last season and is virtually unchanged from its prior estimate, the National Commodities Supply Corp., or Conab, said.
"Conab's soy crop estimate brought no surprise," Steve Cachia, an analyst at consultancy Cerealpar, said. Most analysts are banking on a Brazil soybean crop of between 68 million tons and 69 million tons, so there was no major impact on world soy prices that rose to 26-month highs this week. Conab's estimate was also close to the U.S. Department of Agriculture's estimate published on Tuesday for the Brazilian soybean crop of 67.5 million tons. "A million tons more or less won't make a difference to prices," Cachia said.
Wilmar Posts 60% Drop In Net On Squeezed Margins (Source: CME)
Wilmar International Ltd. (F34.SG), the world's biggest palm oil trader by volume, reported a worse-than-expected 60% drop in its third quarter net profit after an increase in raw material prices squeezed margins in its oilseeds and grains business, but the company sounded a cautiously optimistic note about its prospects. Net profit for the quarter ended Sept. 30 fell to US$259.5 million from US$652.9 million a year earlier. The median estimate of six analysts polled by Dow Jones Newswires was for a net profit of US$416 million. The net profit was also lower because of comparison with a high base last year when the company reported a US$167 million exceptional gain from the sale of its new shares in Wilmar China Ltd. to members of the Kuok Group, a Wilmar shareholder.
Revenue in the third quarter rose 23.3% to US$7.76 billion from US$6.3 billion because of increased sales volume and higher prices of agricultural commodities, Wilmar said in a statement to the Singapore exchange. Weaker crush margins and more expensive raw materials resulted in a quarterly pre-tax loss of US$37.1 million in the oilseeds and grains merchandising and processing segment. For the nine months, pre-tax profit fell 37% to US$ 290.7 million.
Palm oil rally snaps on strong dollar, weak demand
KUALA LUMPUR, Nov 10 (Reuters) - Malaysian crude palm oil futures snapped a four-day rally on concerns over weak overseas demand and a firmer dollar after hitting a fresh two-year high early in the session.
"Local sentiments were pressured by weak exports data and high palm oil stocks in October," said a trader with a foreign brokerage in Kuala Lumpur.
Brazil soy crop seen roughly unchanged from Oct
SAO PAULO, Nov 10 (Reuters) - Brazil's 2010/11 soybean crop was forecast at between 67.7 million and 69 million tonnes, roughly unaltered from the 67.6 million to 68.9 million tonne range seen in October, the government's crop supply agency Conab said Wednesday.
In the agency's second estimate for the crop, Conab said Brazil's total corn output for the season would reach between 51.8 million and 52.7 million tonnes, compared with a range of 51.8 million to 52.4 million tonnes seen in October's forecast.
Rains may cut Malaysian palm output, boost prices
JAKARTA, Nov 10 (Reuters) - Malaysia's palm oil production may fall 5 to 10 percent each month for November and December as heavy rains curb yields and floods make transportation of the vegetable oil difficult, three planters said on Wednesday.
Rains in northern mainland Malaysia have led to floods and planters are concerned the northeast monsoon season in the third quarter of this year will bring heavier than normal showers to key palm oil growing areas in the south.
China Oct soy imports lowest since March
BEIJING, Nov 10 (Reuters) - China, the world's largest soy buyer, imported 3.73 million tonnes of the oilseed in October, the lowest since March and down 19.6 percent from September, official customs figures showed on Wednesday.
The low imports, which were still 48 percent higher than the year-ago period, have helped domestic crushers digest a record level of stocks since the largest-ever monthly imports in June at 6.2 million tonnes.
Brazil to support endangered GMO-free soy seed
BRASILIA, Nov 9 (Reuters) - World No. 2 soy grower Brazil launched a program on Tuesday to produce more GMO-free seed as modified varieties marketed by multinational biotech firms are squeezing out the conventional type.
The program will focus on Brazil's top soy state, Mato Grosso, and comes in response to growers' increasing difficulty in finding sufficient conventional soy seed to supply a market offering them a premium for non-GMO produce.
USDA tightens soy supply view with surprise yield cut
WASHINGTON, Nov 9 (Reuters) - The government unexpectedly cut its estimate of the record-large U.S. soybean crop by 1 percent on Tuesday due to lower yields, and said red-hot exports will reduce the stockpile to a bare-bones three-week supply by next fall, one-third thinner than forecast.
In a monthly update, the Agriculture Department also pared its forecasts for U.S. wheat and corn crops by 1 percent, but traders said the focus was squarely on soybeans, which have lagged the rally in other grain prices this year.
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