Corn, soy fall on dollar strength, LatAm weather
SINGAPORE, Oct 18 (Reuters) - U.S. corn fell more than one percent to a near 1-week low, while soy and wheat slipped as a stronger dollar and an improved weather outlook in South America weighed on the grain markets.
"It's a soft start to the week as there is an outlook for improved weather in South America," said Adam Davis, a senior commodity analyst at Merricks Capital, a Melbourne-based funds manager that invests in agriculture.
Belated seeding quickens in No.1 Brazil soy state
SAO PAULO, Oct 15 (Reuters) - The planting of the 2010/2011 soybean crop in Brazil's No. 1 producing state Mato Grosso reached 6.7 percent by Oct. 14, well behind the 22.4 percent planted at this time last year, the state farm economy institute Imea said on Friday.
Planting is up 5 percentage points from the previous week as producers plant in isolated areas that saw sufficient rain in the past weeks to start the new crop. Last year's crop had near perfect rainfall and produced a record 18.8 million tonnes of soybeans in the state.
U.S. soy product futures settled lower, retreating from earlier advances in unison with soybeans. Traders taking profit taking on the week's gains overshadowed supportive demand outlooks in both soymeal and soyoil, analysts said. December soyoil settled 0.25 cents or 0.5% lower at 47.77 cents per pound. December soymeal ended $3.50 or 1.1% lower at $328.20 per short ton.(Source: CME)
India September Vegetable Oil Imports Up 6% At 960,752 Tons (Source : CME)
India's vegetable oil imports in September rose 6% from a year earlier because of a surge in soyoil purchases, the Solvent Extractors' Association of India said. Vegetable oil imports during the month increased to 960,752 metric tons from 905,192 tons, the trade body said. Total imports in the first 11 months of the marketing year that began November 2009 increased 5% to 8.41 million tons from 7.98 million tons, it said. India is the world's second-largest vegetable oil importer after China and meets more than half its requirements through imports as local production lags consumption.
The trade body also said that edible oil imports in September increased 8.9% to 942,257 tons. Crude palm oil imports grew 8% to 588,618 tons, but imports of refined, bleached and deodorized palm olein fell 36.6% to 93,158 tons. Soyoil imports surged 72% to 189,930 tons from 110,205 tons. The country imports palm oil mainly from Indonesia and Malaysia, and soyoil mostly from Brazil and Argentina. Soyoil imports have been rising for the past few months as its price gap with palm oil has narrowed to less than $100/ton. That makes soyoil attractive to import as it is considered a healthier oil.
Cargill CEO: Commodity Prices Not Sign Of Crisis; Concerns Remain (Source : CME)
Agricultural commodity prices aren't signaling a supply crisis, but increased government intervention and a rise in crude oil prices remain vulnerabilities for global food supplies, Cargill Inc. chief executive Greg Page said. Page, in an interview, said global agriculture is in a "constant state of disequilibrium," and while commodity prices remain well below 2008 record highs, grain stocks as a percentage of usage are "less stable than one would have expected." A key factor preventing a repeat of two years ago are crude oil prices, which soared close to $150 a barrel in 2008 but now trade around $80 a barrel. A surge in oil prices can drag corn futures higher, while increasing production costs across the agriculture supply chain. Cargill is the largest U.S. private company by sales and among the world's largest agribusiness companies.
"The biggest element is the absolute price of oil," Page said on the sidelines of the World Food Price conference in Iowa. "I think if we had the same oil price that we had before, we might have a different set of price signals." Page sees government intervention in global trade as an additional concern. The 2008 food crisis, which resulted in riots in some poor countries, was exacerbated by trade restrictions, with 20 countries enacting barriers at some point, he said. More recently, Cargill has been critical of Russia's ongoing grain export ban announced in the summer, even though analysts say Cargill and other large global grain merchandisers benefited as Russia's customers looked elsewhere for supplies. Other countries so far haven't added their own bans, but "people have their anxiety meter dialed up" over tight grain supplies, Page said.
Government ethanol policy remains a concern of Page, who reiterated his opposition to mandates for the corn-based fuel. He said such policies lock in demand even when crop production is disappointing, such as this year. That results in the livestock sector, which depends on corn to feed its animals, cutting back production because of prices, Page said. Cargill's businesses include meat processing. "Everyone would be better off if all the elements participated in the adjustment," he said. This week the U.S. government announced it was increasing the amount of ethanol that could be blended into gasoline for many cars to 15%, up from 10%. Another key U.S. policy decision remains over whether to extend the 45-cent tax credit to ethanol blenders. The credit expires at the end of the year and the tight time frame lawmakers have left to decide is "anxiety-inducing," Page said.
Page said that agricultural development in Africa, a focus of the Thursday's conference, is dependent on better government institutions that give confidence to private investors. Cargill can contribute to food security through its price-setting, transportation, processing and farmer education, he said.
U.S. soybeans hit 14-month high on strong demand
SYDNEY, Oct 15 (Reuters) - U.S. soybean futures broke through $12 per bushel for the first time in 14 months, boosted by strong demand from U.S. domestic processors and exporters as well as fund buying.
"Soybean and soy oil demand from China remains high while prices are also being supported by the weak U.S. dollar," said Garry Booth, a senior advisor at MF Global Australia.
Two-year highs for most oils; palm near 3,000 ringgit
KUALA LUMPUR, Oct 15 (Reuters) - Global vegetable oil markets hit fresh two-year highs with palm oil hovering near a key resistance level as markets continued to price in a possible supply shortfall and a weaker dollar.
"Soyoil prices might climb to 9,150 yuan with the additional effects from firmer U.S. soy that increased on strong demand."
China to buy domestic new soy at higher price-traders
BEIJING, Oct 15 (Reuters) - The central government will continue to buy soy from the new domestic harvest for state reserves at 3,800 yuan per tonne, 1.6 percent higher than last year's price, trading sources said on Friday.
"The related document will be issued to local governments soon," said one industry source.
China soyoil demand could boost Argentine soy crop
BUENOS AIRES, Oct 14 (Reuters) - The end to China's six-month boycott of Argentine soyoil shipments could spur farmers to plant more soybeans in the South American country, as prices for soyoil rise.
China, the world's largest soyoil buyer, halted shipments from No. 1 global exporter Argentina in late March in apparent retaliation for Argentine anti-dumping measures applied to some Chinese manufactured goods.
