Soy Oil chart reading : upward correction range bound downside biased
US soybean futures finish higher, reversing a sharp selloff spurred by Japan-related demand concerns. Soybeans for May delivery settled 1.3% higher at $12.87/bushel. Soybeans were able to strengthen as the rebound in Japanese equities helped open the door for gains in agricultural commodities. Beans also benefited from an official estimate reducing China's 2011 soy acres plantings by 11%, says Rich Nelson at Allendale. Also, "reports of rains in Brazil disrupting harvests and delaying loadings of soybean supplies for export provided further support." (Source: CME)
Soyoil futures stabilize after facing sharp declines Tuesday, with the byproduct of soybeans also supported by higher crude oil futures. Ended up 0.08c higher at 52.96c/pound after giving up nearly all the day's gains. Soymeal for May delivery rose 1.1% to $344.50/short ton at the CBOT. (Source: CME)
Toepfer: German Rapeseed Winterkill To Pressure EU Biofuels (Source: CME)
Europe's biofuels market looks set to tighten this year after winterkill damaged much of Germany's rapeseed crop in recent weeks, the country's largest grain tradehouse Toepfer International said. Northern and eastern parts of Germany have suffered from severe temperature swings of between -12 and +15 degrees Celsius, leaving plants vulnerable to frost damage and hurting yields. "It is doubtful whether the winter rapeseed plants can still catch up completely the lag in development," said Toepfer. "After the delayed seeding last year in late summer the rapeseed plants are still extremely behind in development."
The U.S. Department of Agriculture forecasts a 6% drop in rapeseed output from the European Union in 2010-11, at 20.3 million metric tons. With between 60%-65% of Europe's biodiesel based on the grain and a raft of new EU regulations mandating an increase in biofuels use this year, markets look set to tighten. Output from Ukraine, the bloc's largest supplier, has also been halved by winterkill, meaning imports are expected to remain low. Ending stocks are therefore expected to fall to 1 million tons, leaving a stocks-to-use ratio at 4.1%, its lowest level in eight years. "After the 2010 harvest, which was at best 'average,' dependence on imports is particularly high this marketing year," said Toepfer. "Rapeseed supply is particularly tight in the EU market."
Palm oil falls more than 3 pct on Japan worries
JAKARTA, March 16 (Reuters) - Malaysian palm oil futures shed as much as 3 percent tracking other commodity prices lower as the nuclear crisis in Japan sent investors scrambling for perceived safe haven assets. "It's a sad scenario," said one trader. "There have been two attempts to recover since Friday, but the market has succumbed to selling pressure. Overnight, Chicago collapsed. It is time to form a bottom -- 3,250 should be a temporary bottom."
Rain dogs harvesting in Brazil's top soy state
PRIMAVERA DO LESTE, Brazil, March 15 (Reuters) - Soy farmers in Brazil's top soy-growing state Mato Grosso are struggling to harvest in heavy rains that have left fields soggy and cut the price of grains which are too damp.
Unusually heavy rains for the time of year have blighted what had been shaping up to be a good quality harvest in the state which grows 25 percent of Brazil's soy, after overcoming overly dry weather at its sowing stage late last year.
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