Soy product futures ended mixed with soyoil climbing at the expense of soymeal on strong export demand. The market is garnering strong demand from China, with firm crude oil prices and fears of tightening world vegoil supplies buoying prices as well, analysts said. Soymeal slipped lower on oil/meal spreading. December soyoil settled 0.64 cents or 1.5% higher at 43.90 cents per pound. December soymeal ended $0.90 or 0.3% lower at $309.50 per short ton.(Source:CME)
Informa Cuts 2010 US Corn, Soy Output Estimates-Traders(Source:CME)
Private analytical firm Informa Economics cut its forecasts for U.S. corn and soybean production as the harvests advance. Informa pegged 2010 corn output at 12.88 billion bushels, below its early September estimate for a final crop of 13 billion, traders said. The firm estimated 2010 soybean output at 3.412 billion bushels, compared with an earlier projection of 3.437 billion, they said. Results from the early corn harvest have been disappointing and encouraged talk of a smaller-than-expected crop. The U.S. Department of Agriculture on Sept. 10 estimated corn production at 13.16 billion bushels. Early soybean harvest results have been strong, but Informa said Thursday that it was lowering its estimate for 2010 soybean acres, according to traders. The USDA on Sept. 10 pegged the soybean crop at 3.483 billion bushels.
The USDA is set to update its production estimates in a crop report due Oct. 8. As of Sunday, 18% of corn was harvested, above the five-year average of 10%, and 8% of soybeans were harvested, above the five-year average of 6%, according to the government. Informa estimated 2010 all-wheat production at 2.224 billion bushels, compared to USDA's September estimate of 2.265 billion, traders said. The government is expected to update its wheat production estimate in a small grains report Sept. 30. Informa also issued estimates for 2011 crop plantings, traders said. Reduced corn output expectations recently sparked a rally in corn prices and encouraged talk about the need for soybean prices to rise to compete for acreage. The firm projected 2011 corn plantings at 90.4 million acres and soybean plantings at 77.4 million acres, traders said. Informa estimated 2011 all-wheat plantings at 57 million acres and cotton plantings at 11.05 million acres, they said.
The USDA in June estimated 2010 corn plantings at 87.9 million acres and soybean acres at 78.9 million. The government pegged 2010 all-wheat plantings at 54.3 million and cotton plantings at 10.9
Palm Oil Body RSPO: Indonesia's Smart Has Breached Policies(Source:CME)
The Roundtable On Sustainable Palm Oil, an industry organization that groups palm producers, environmental groups and food companies, said that Indonesia-based Sinar Mas Agro Resources & Technology (SMAR.JK) has breached its policies and that the firm's membership in the group is at risk. "Members who have been found to not be in compliance and who continue to be in noncompliance with the RSPO regulations could ultimately face sanctions, including the suspension and, eventually, the termination of their membership of the RSPO," it said. The comments by RSPO could diminish Smart's hopes that global conglomerates could resume purchases of palm oil products from the company. Global food giants Nestle SA (NESN.VX) and Unilever NV (UN), as well as U.S.-based fast food chain Burger King Holdings Inc. (BKC), are on the long list of food companies that has suspended sourcing of palm oil from Smart in response to claims by Greenpeace that the producer is involved in deforestation.
Responding to RSPO's comments, Daud Dharsono, president director at Smart, said the company was committed to sustainable palm production and "will work towards RSPO's requirements." In August, Smart issued results from an independent audit--carried out by the Control Union Certification and the British Standard Institute--refuting charges by environmental group Greenpeace that it had cleared large swathes of land with high conservation value and drained peat lands to cultivate palm crop. Smart said the audit provided evidence that "the firm had operated responsibly and within the laws and regulations set out by the Indonesian government," but BSI said subsequently that some aspects of its report were misreported, and that Smart had set up plantations on deep peat in two estates. RSPO said on its website that its grievance panel had written to Smart and its parent firm, the Singapore-listed Golden Agri Resources Ltd (E5H.SG), about the breaches revealed by the auditors. Golden Agri is not a member of the RSPO.
RSPO also urged Golden Agri to stop announcing publicly it was in the process of obtaining RSPO certification for its estates or that it planned to become a RSPO member. "Golden Agri is not a member of the RSPO, nor has the RSPO yet received a membership application from the company. The panel encourages Golden Agri to submit a full and complete application for membership (and) documentation RSPO would need in order to review the application," the agency said.
Boosted by adverse weather; eye industry meet
KUALA LUMPUR, Sept 23 (Reuters) - Global vegetable oil markets made a little headway on concerns over erratic weather curbing grain harvests across the globe.
"Weather problems in Canada, South Americas, China and Ukraine giving support to grain complex, especially corn and soy," said a trader in Kuala Lumpur. "Indirectly, soyoil is rallying."
Adani Wilmar to more than double soymeal exports
MUMBAI, Sept 23 (Reuters) - India's Adani Wilmar, the second-biggest edible oil importer in the country, aims to double its soymeal exports to 1.2 million tonnes in 2010/11 on higher availability of seeds.
"Certainly, we will export more soymeal in 2010/11, last year we had exported 500,000 tonnes. This year we will export 1.2 million tonnes," Pranav Adani, managing director told reporters on Thursday.
Brazil's southern soy states to see rain - Somar
SAO PAULO, Sept 22 (Reuters) - Heavy rainfall is beginning to roll through Brazil's southern soybean producing states, but widespread moisture is not seen in Brazil's early planting center-west region until early October, Somar meteorologists said Wednesday.
Brazil's official soy planting season began on Sept. 15 but dry weather as a result of La Nina has pushed back the planting date for two to three weeks in the No. 1 soybean growing state of Mato Grosso, according to present Somar forecasts.
Weather, festive demand stoke China's soyoil appetite
KUALA LUMPUR, Sept 23 (Reuters) - China's recent big buy of U.S. soyoil heralds a scramble for even more cargoes as domestic supplies shrink on strong festive demand and crops are hit by erratic weather.
The world's second-largest consumer of vegetable oil could buy 5 to 10 percent more soyoil in 2010 than the 2.4 million tonnes it bought last year, with purchases picking up in the second half as traders fret that cold weather may shrivel the domestic soy crop.
Argentine crops seen threatened by La Nina
CHICAGO, Sept 22 (Reuters) - The strengthening weather formation known as La Nina is causing concerns about the upcoming South American growing season for wheat, corn and soybeans, a U.S. agricultural meteorologist said on Wednesday.
"I would be very concerned about Argentina. They did pick up some significant rains this month which benefited the winter wheat crop. However, La Nina correlates quite well with drought in central Argentina," Mike Palmerino, agricultural meteorologist for Telvent DTN, told the Reuters Global Ags Forum, an online chatroom for grain traders.
