Soy Oil chart reading : side way range bound little downside biased.
Soybeans (Source: CME)
U.S. soy futures settled higher Tuesday, climbing to the upper end of a recent trading range on anticipation USDA will project 2011 U.S. soy acres below levels that would allow the market to rebuild supplies. The market is factoring the market's greater need to entice farmers to plant more soybean acres since the USDA conducted its March plantings survey, said Dave Marshall, independent broker. Concerns that rainfall in northern Brazil will further delay harvests and potentially produce yield losses from wet conditions in northern areas are buoyed prices as well. CBOT May soybeans settled up 13c or 1% at $13.61 1/2 a bushels, and Nov soy ended up 12 1/4c or 0.9% at $13.54 1/4.
Soybean Meal/Oil (Source: CME)
Soy product futures rallied in unison with soybean futures. The threat of lower available soy supplies for crushing due to lower plantings in 2011 served as support for both soymeal and soyoil futures, analysts said, CBOT May soyoil ended 0.49c or 0.9% higher at 57.02 cents per pound, and May soymeal settled $5.00 or 1.4% higher at $358.60 per short ton.
China Demand To Push Global Soybean Trade To Record High �IGC (Source: CME)
Demand from China and the European Union is likely to boost global soybean trade this year by 5.4% to a record high of 97.6 million metric tons, the International Grains Council said. The IGC raised its forecast for global soybean trade in the year ending Sept. 30 by 200,000 tons in a monthly report for March. It forecast China's soybean imports to rise 6% to 56 million tons, or nearly three fifths of global trade, boosted by rapid expansion in the vegetable oil and feed meal sectors. It said E.U. soybean imports will likely rise 17% to 13.5 million tons, due to tighter availability and higher prices of other alternatives such as rapeseed. The IGC also raised its estimate for 2010-11 global soybean production to 259.1 million tons due to improved prospects in South America. Brazil's soybean harvest may hit a record high of 70.3 million tons, it said.
Higher exports from Brazil and Paraguay will more than offset a marginal fall in exports from Argentina, it said. It forecast Brazil's soybean exports to rise 12% to 32 million tons. It said global soymeal trade will likely rise 7% to 58.3 million tons, boosted by strong import demand in both Asia and the E.U. It forecast Soymeal imports by the E.U. to rise 8.6% to 23.9 million tons, and raised its projections for Brazil's soymeal exports by 3% to 13.2 million tons. It forecast global rapeseed trade to decline 10% to a three-year low of 10 million tons, due to weaker demand in North America and Asia, as prices are high compared with soybeans.
Palm oil falls on ample soyoil supply prospects
KUALA LUMPUR, March 29 (Reuters) - Malaysian crude palm oil futures fell as traders expect soyoil supplies to swell on the incoming South American soy harvest. "Palm oil has followed the declines in Chicago soyoil as ample supply becomes more apparent. This has prompted the technical players to sell down, probably to 3,200 ringgit," said a trader with foreign commodities brokerage in Kuala Lumpur.
US soy acres seen losing ground, stocks expanding
CHICAGO, March 28 (Reuters) - U.S. farmers will plant fewer acres to soybeans this year than they did last year, but seedings could be the third largest ever and might grow even larger if seeding delays force farmers to switch out of other crops, a Reuters Poll showed.
An estimated 76.870 million acres are expected to be planted to soybeans in 2011, down 534,000 acres from 2010.
European rapeseed crop outlook uncertain on frosts
HAMBURG, March 28 (Reuters) - The outlook for Europe's summer 2011 rapeseed crop is uncertain as late winter frost damage is suspected in leading producers Germany and Poland, despite good crops seen elsewhere, observers said on Monday.
"Some German and east European rapeseed has not come through the winter well and (those countries) may be facing lower crops on the year," one trader said. "This could remove the benefits of a more positive outlook in France and Britain."
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