ITS CPO export up 26.6% to 747,431 tonnes for the period of 1~15 Nov 2010.
SGS CPO export up 28.3% to 777,761 tonnes for the period of 1~15 Nov 2010.
Soyoil futures fell the daily trading limit Friday, succumbing to the broader based liquidation phase in the commodity sector. Fears of China raising interest rates, a feature seen as a negative for Chinese imports, sent buyers running for cover, with sharp declines in Asian vegoil markets setting the stage for the selloff, analysts said. Soymeal followed the lead of beans and soyoil, falling sharply on speculative selling pressure. CBOT Dec soyoil ended 2.5 cents or 4.5% lower at 52.53 cents a pound, while December soymeal traded $18.40 or 5.1% lower at $339.70 a short ton. (Source: CME)
Commodities Retreat On Worries Of China Rate Hike (Source: CME)
Commodities tumbled across the board, part of a wider market selloff as worries grow that China will take additional actions to slow its surging economy. Data from China released Thursday showed inflation rising faster than anticipated, which could force China's central bank to raise interest rates or take other steps to slow growth. Grains and metals had risen on the report Thursday but they backtracked Friday along with crude oil and equities markets. Cotton and sugar, which fell from multi-year highs earlier this week, saw additional declines. Official data from the Chinese government Thursday showed consumer prices rose by 4.4% in October. Average inflation this year has now reached 3% and will likely rise unless readings slow sharply in the next two months. The reports left traders fearful that China's central bank could soon raise interest rates further, curbing commodity demand in one of the world's fastest-growing regions.
A rate hike in China could also reduce the amount of money available to invest in commodities, even as the U.S. Federal Reserve's decision last week to purchase $600 billion in Treasurys will increase the money supply. The Fed's action, which stoked the possibility of inflation, sparked the rally. Commodities have been focused intently on policy decisions related to managing inflation. The Fed's action sent investors looking for hard assets as a hedge against inflation, pushing gold futures to record highs. But a rate hike in China is designed to limit rising prices. "It counteracts the impact of quantitative easing in the U.S.," said Jim Steel, senior vice president and metals analyst with HSBC in New York. "It's anti-inflationary in China." Commodity markets have been on a tear in recent months, helped by the weakening dollar, while supplies of agricultural products and metals tightened.
The U.S. central bank's stimulus measures led to additional declines in the greenback, which often forces commodity prices higher. Meanwhile, emerging markets are rebounding quickly from the economic downturn and soaking up raw materials, with China leading the way. China is the biggest single source of demand growth in many commodities markets, including oil, copper and soybeans. But commodity prices have factored in much of those gains, and fears that this growth could slow has pushed traders to try and lock in profits. "Some of these markets have gotten ahead of themselves," amid the recent rally, said Zachary Oxman, a managing director at TrendMax Futures. "We've got a weak dollar and we've still got commodities failing. It's got to be a lot of profit-taking." Cotton and sugar, which had seen some of the strongest gains in recent months, posted large declines Friday. Other U.S. agriculture commodities sold off as well.
Soybean and corn futures fell at the Chicago Board of Trade on concerns the tightening of Chinese monetary policy would dilute the strength of export demand for U.S. crops. China is the leading importer of U.S. soybeans and off to a record pace for the current crop. Analysts also expect China to reemerge as a big buyer of U.S. corn this year. The declines also spilled over into wheat and live cattle futures. Yet even amid concerns over Chinese monetary policy, analysts expect the strong global demand that has driven agriculture commodity prices higher this year to continue.
Soy falls 3 pct, corn at 3-week low on China rate talk
SINGAPORE, Nov 12 (Reuters) - U.S. soy slid more than 3 percent , dropping from a 26-month top, while corn fell to a three-week low as talk of a possible Chinese interest rate hike this weekend sparked a broad-based selloff in commodities.
"There is bearish tone through all the agricultural markets, it is general risk aversion flowing through commodities at this present stage," said Luke Mathews, commodity strategist at Commonwealth Bank of Australia.
Down on China inflation, broader commods selloff
KUALA LUMPUR, Nov 12 (Reuters) - Malaysian crude palm oil futures eased from more than two year-highs hit the previous day, on concerns of higher China inflation and a broader selloff in commodities linked in part to Irish debt woes.
"China and Europe are giving very good excuses for players to take profit after the strong rally," said a Malaysian trader with a foreign brokerage.
Argentine soy, corn crops need more rain - exchange
BUENOS AIRES, Nov 11 (Reuters) - Light rains in Argentine farming regions allowed limited progress with soy sowing over the last week, and plantings are on hold in many areas, Buenos Aires Grains Exchange said on Thursday.
Argentina is the world's third-largest exporter and farmers are planting 2010/11 soybeans at a time of strong demand from China, the top importer of the oilseed.
RSPO asks palm oil buyers to plan green palm demand
JAKARTA, Nov 12 (Reuters) - An industry body that set up standards for green palm oil output said that in order to boost sales, buyers should specify end uses for the product.
The Roundtable on Sustainable Palm Oil (RSPO), an industry body of consumers, green groups and plantation companies that aims to promote use of sustainable oil palm products, is trying to balanced increased pressure on growers by giving them clearer forecasts from potential buyers.
Malaysia's IOI says palm prices to stay strong
PUTRAJAYA, Malaysia, Nov 12 (Reuters) - Palm oil prices will extend their rally into mid-2011 after touching their highest level in over two years, the world's third largest listed producer of the vegetable oil said.
"We are optimistic that the strong price trend (of 3,000 ringgit per tonne) will continue up to the middle of 2011," Lee Yeow Chor, executive director of Malaysia's IOI Corp said in an interview.
India's Oct vegoil imports boosted by stock build-up
NEW DELHI, Nov 11 (Reuters) - India's vegetable oil imports in October fell from September as local output started, but were still up 22 percent on a year ago as buyers built stocks to avoid possible price hikes on global output problems, a Reuters survey showed.
In addition, the festival of Diwali -- a period of family gatherings and feasting -- fell in November this year compared with last year's October date, affecting year ago comparisons.
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