Soy product futures stage a recovery in unison with soybeans. Soyoil futures led the advances, hitched to the rally in energies, particularly with margins for biodiesel turning profitable, says AgResources' Dan Basse. Crude oil influences soyoil due to its use in making renewable fuels. CBOT May soyoil ended 2% higher at 55.70c/pound and May soymeal rose 1.5% at $356.10/short ton. (Source: CME)
KL Kepong CEO Sees Palm Oil Prices Easing (Source: CME)
Malaysian palm oil producer Kuala Lumpur Kepong Bhd. expects crude palm oil futures to extend a recent downward correction, falling as much as 6% from current levels as output gradually rises in Malaysia and Indonesia, the company's chief executive said. "While palm oil's fundamentals are still good, the market has risen too high," Lee Oi Hian told Dow Jones Newswires. "The rally may be running out of steam." He said prices may ease to between MYR3,300 and MYR3,500 a metric ton in the next few months. Crude palm oil futures on Malaysia's derivatives exchange rose to a 35-month high of MYR3,967/ton earlier this month amid concerns about tight global vegetable oil supply. Lee said the company's output may rise in the fiscal year ending Sept. 30, as some plantations are bearing more fruit and weather conditions are improving.
He didn't provide specific numbers, but said output "will show a single digit rise" from last year. He said the company will carry out new planting on 8,000 hectares of land in the current fiscal year. KLK, Malaysia's third-largest listed plantation company by land bank size, produced 3.18 million tons of oil palm fruit last year.
Slide as risk aversion grows over Libyan unrest
KUALA LUMPUR, Feb 23 (Reuters) - Vegetable oil markets tumbled as spreading Libyan unrest spurred investors to flee agriculture assets to the safe haven plays, although traders said the sell-off was a knee-jerk reaction and prices will recover. "The palm oil market will have to go up as February is a much shorter month and production will be much lower," said a Malaysian trader with a foreign commodities brokerage.
China changes edible oil import quarantine rules to boost import
BEIJING, Feb 23 (Reuters) - China adjusted the quarantine rules for imported edible oils to increase imports, the General Administration of Quality Supervision, Inspection and Quarantine said on Wednesday.
The country scrapped the quarantine certificate for refined edible oil packed for retail from Jan 1 this year, the administration said in a statement published on its website.
Palm to go into a discount to soyoil as output recovers
KUALA LUMPUR, Feb 23 (Reuters) - Malaysian palm oil will reverse its current premium to competing soyoil and trade at a discount as output recovers in the second half of this year, a leading analyst said on Wednesday.
Palm olein currently trades at a $70 premium to a tonne of Argentine soyoil, triggering fears that demand will slow and weigh on benchmark palm oil futures that is set to post its worst monthly loss in February in more than a year.
Malaysia's Sime hunts for land as palm price rises
KUALA LUMPUR, Feb 23 (Reuters) - Malaysia's Sime Darby , the world's biggest listed palm oil firm, is on the lookout for more land, its chief executive said on Tuesday, in a move sure to fuel the global grab for arable land as food prices remain high. During the 2007-2008 food price surge, resource companies from Saudi Arabia to South Korea scoured the world for agricultural land to increase supplies and profit from growing food demand.
Nestle to buy slightly less palm oil in 2011
JAKARTA, Feb 22 (Reuters) - Nestle will buy slightly less palm oil in 2011 due to changes in its products, and is confident of hitting its year-end target of buying 50 percent of supplies from sustainable producers, the the world's biggest food maker said on Tuesday.
"It's mostly because of the way our receipes are evolving. It is not the result of a strategy," Jose Lopez, chief operating officer, told Reuters in an interview on Tuesday, adding it was also because of changes in demand for the firm's product mix.
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