Soy product futures finished mixed, with soyoil rising to a 3 1/2 week high before paring gains. Soyoil was buoyed by strength in world vegoil markets amid strong global demand. Furthering gains were optimistic outlooks for a pick up in domestic use from the biodiesel industry following industry talk that the $1.00 biodiesel blenders tax credit would be rolled into law makers' agreements on preserving U.S. tax cuts, analysts said. CBOT Jan soyoil ended 0.26 cents or 0.5% higher at 53.80 cents per pound, and Jan soymeal traded $2.20 or 0.6% lower at $344.30 a short ton. (Source: CME)
China Self-Sufficiency In Edible Oils Below Govt Threshold (Source: CME)
China's self-sufficiency in edible oils has fallen below a government threshold for national food security policy, the head of an agricultural research arm of the state-backed Chinese Academy of Agricultural Sciences said. As the world's largest consumer of vegetable oils confronts two-year-high inflation levels, Beijing has sought to roll back sharp increases in cooking oil prices, releasing half a million metric tons of edible oil reserves and telling producers to hold down price hikes until the Lunar New Year. "China's self-sufficiency in edible oils is now 34%, lower than the government's aim of 40%," said Wang Hanzhong, director of the academy's Oil Crops Research Institute. "This is considered quite dangerous," he told an industry conference. "It's not safe, and it's a matter that is getting attention from the government." The academy is China's national agricultural research body, affiliated to the Ministry of Agriculture.
Cooking oil, widely used by most households, is a poster child for the government's campaign to curb inflation. Officials from the National Development and Reform Commission, the country's top economic planning agency, told food producers to refrain from raising cooking oil prices until the Lunar New Year is over, an industry official familiar with the situation said last week. Companies would have to apply to the commission if they want to raise prices during this period, local media said. Cooking oil prices jumped 13% in October. However, prices have weakened with China last week announcing its seventh annual record harvest, which rose 2.9% on 2009 to reach 546.4 million metric tons.
Brazil soy planting reaches 91 pct area-Celeres
SAO PAULO, Dec 6 (Reuters) - The planting of Brazil's 2010/11 (Sept/Aug) soybean crop climbed to 91 percent of the expected area by Dec. 3, ahead of the 86 percent planted a year ago, grain analysts Celeres said on Monday. The analysts also lowered their expectation of the current crop output to 68.1 million tonnes from 69.1 million forecast last month due to lower yields out of Brazil's center-west soy states.
Argentine soy-crushing workers end brief strike
BUENOS AIRES, Dec 6 (Reuters) - Soy-crushing workers in key Argentine grain ports started to resume normal duties on Monday following a brief protest over safety conditions that brought plants to a virtual halt, a union leader said. The protest, which started at midnight (0300 GMT), affected soy-crushing plants and ports in Puerto San Martin and San Lorenzo, although workers agreed to undertake some maintenance tasks.
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