Soyoil futures ended higher, staging a modest bounce from recent downtrend. Profit-taking on meal/oil spreads, talk of improving soyoil demand internationally at the expense of palm oil and higher crude oil futures helped buoy prices, said Allendale's Joe Victor. July soyoil settled 0.20 cents, or 0.5%, higher at 36.67 cents per pound. Speculative funds were estimated buyers of 2,000 lots in soyoil(Source: CME).
Malaysia May Palm Oil Output Likely Rose 5%-7% -Market Sources(Source: CME)
Malaysia's palm oil output likely rose 5%-7% on month to around 1.37 million-1.40 million metric tons, but end-May palm inventories were probably little changed at 1.62 million-1.63 million tons because exports didn't rise enough to offset the seasonal increase in production, market participants said.
At the end of April, stocks were at 1.62 million tons, according to data from the government-linked Malaysian Palm Oil Board. The MPOB is expected to issue data on Malaysia's May palm oil production, exports and end-month stocks Thursday.
"The rise in production is likely to continue into June but (it) may be gradual as heavy rains may disrupt harvesting activities," said a senior executive of a Malaysia-based plantation company.
Rising production and inventories will likely continue to weigh on market sentiment, trade participants said.
"Prices may remain in a MYR2,400-MYR2,500/ton range," said a senior executive at a Kuala Lumpur-based commodities brokerage.
Output in May probably rose due to better yields at estates in peninsular Malaysia, while production in Sabah and Sarawak region saw only mild increases in yields, growers said.
Though May palm oil exports were higher at 1.32 million-1.33 million tons, many trade participants said market sentiment remained cautious due to rising inventories.
Domestic consumption in May is estimated around 155,000 tons and imports from Indonesia at 70,000 tons, with end-May stocks likely at 1.62 million tons, said a Singapore-based trading executive.
USDA Looking Into Possibility Of US Soyoil Exports To China(Source: CME)
The U.S. Department of Agriculture, at the behest of the U.S. soybean industry, is looking into how to facilitate soyoil exports to China now that the country restricted its purchases from Argentina.
China announced in April that Argentine soyoil did not meet Chinese standards and restricted trade, but the action is believed to be retaliation for Argentina's previous curbs on Chinese goods.
As a result, there appears to be an opening for U.S. suppliers to step in to do business with China, but they will need help from the USDA, according to U.S. soybean industry officials who asked not to be named because negotiations with China are ongoing.
China requires a government phytosanitary certificate to accompany the soyoil it imports. The certificate is to verify that there are no plant pests in the soyoil, but USDA does not traditionally issue certificates for soyoil because the product is processed in a way that would kill any pests.
USDA's Animal and Plant Health Inspection Service, a spokesperson said Monday, is looking into "options" to help U.S. soyoil exporters make sales to China.
"We have discussed things with our Chinese counterparts, which is necessary for any negotiations," the USDA spokesperson said.
China is the world's largest soyoil importer, according to the USDA, which predicted recently that Chinese imports will total 2.15 million metric tons in the 2010-11 marketing year. That's up from the 1.9 million tons USDA estimates that China imported in 2009-10.
China imported 2.7 million tons of soyoil in the 2007-08 marketing year and Argentina provided 1.8 million tons of that total, according to a February report compiled by USDA's Foreign Agriculture Service.
DuPont Receives USDA Approval For New Soybean
DuPont (DD) said Tuesday that the Department of Agriculture approved its Plenish high oleic soybean for cultivation in the U.S.
"This is a significant milestone as we work to develop biotech traits that provide direct consumer benefits and solid results in the fields," DuPont said.
The soybeans contain the highest oleic acid content of any soybean product under commercial development.
Plenish high oleic soybean oil also have 20% less saturated fat than commodity soybean oil, "making it a more attractive ingredient for consumer food products," DuPont said.
Palm oil flat as market eyes key industry data
KUALA LUMPUR, June 8 (Reuters) - Malaysian crude palm oil futures made little headway as investors waited for cues on stocks and production data due this week although concern about Europe's debt crisis sapped sentiment. "The Malaysian market is contained in a tight range, there may be some support if crude oil recovers," said a trader at a foreign brokerage.
Poor weather to curb rapeseed crop in west Europe
PARIS, June 8 (Reuters) - This summer's rapeseed harvest in western Europe is set to bring lower yields after unfavourable conditions at several growth stages, curbing output after bumper crops last year in top producers Germany and France.
The region was still on course for a large crop, while yield results were hard to call ahead of the critical pod-filling phase, analysts and traders said.
Ukraine rapeseed crop, exports to fall -consultant
KIEV, June 8 (Reuters) - Ukraine's 2010 rapeseed crop is likely to fall to 1.6 million tonnes from 1.85 million in 2009 due to a smaller harvesting area, UkrAgroConsult consultancy said on Tuesday.
The consultancy said in a statement a smaller crop would cause rapeseed exports to fall to 1.56 million tonnes in the 2010/11 season from 1.8 million in 2009/10.
Argentina says China soyoil row to be resolved soon
BUENOS AIRES, June 7 (Reuters) - Talks between Argentina and China over the Asian giant's freeze of Argentine soyoil imports are progressing and the dispute could be resolved soon, Argentina's agriculture minister said on Monday.
China, the world's largest buyer of soyoil, halted shipments from Argentina, the top global exporter, in late March in retaliation for anti-dumping measures imposed by the South American country on some Chinese manufactured goods.
