Soy Oil chart reading : side way range bound little downside biased.
Soybeans (Source: CME)
US soybean futures end higher, managing to break away from a broader-based selloff in commodities. Traders weren't comfortable taking risk premium out of the soybean market with uncertainty still surrounding the end of the US soy planting season, said John Kleist, analyst with ebottrading.com. Traders unwinding long corn/short soy spreads added support, helping futures withstand the negative on prices of a surging US dollar and tumbling crude oil. CBOT July soy end unchanged at $13.68/bushel; Nov soy finish up 3c at $13.66.
Soybean Meal/Oil (Source: CME)
Soy product futures ended higher, bounce with soybeans. Soymeal and soyoil futures climbed in the face of broader based losses, as lingering uncertainty about the size of the 2011 soybean crop limited selling pressure in the markets, analysts said. CBOT July soymeal end up $1.30 at $360.00/short ton, and July soyoil end up 0.20 cents at 57.05 cents/pound.
China To Extend Cooking Oil Price Caps To Mid-August -Report (Source: CME)
China will extend price caps on cooking oil sales to Aug. 15 to keep the market stable ahead of heavy consumption during the Mid-Autumn Festival, the China Business News daily reported, quoting a soy crushing company executive. The price controls were imposed around November and extended in April as an informal government requirement for major producers, including Singapore-based Wilmar International Ltd. and domestic companies Cofco Ltd. and Chinatex Corp., to support Beijing's efforts to contain inflation. Wilmar last week confirmed that China hasn't lifted cooking oil price caps, which were technically expiring in early June, contradicting a foreign news report. Wilmar, which accounts for half of China's cooking oil retail market, operates in the country as the Yihai Kerry Group.
While the National Development and Reform Commission, which is in charge of market order, has declined to comment on the issue, its deputy chairman Xu Xianping said last week that inflationary pressure in China remained high, especially for oil and grain prices. China's inflation last month accelerated to 5.5% from a year earlier, the highest level since July 2008, the National Statistics Bureau said. The bureau warned that drought- and flood-affected vegetable prices may rise further, adding to inflationary pressures. The government has also put in place informal price ceilings on other consumer essentials, including flour, instant noodles and other common household products. This year's price caps were issued by verbal request from commission officials to selected companies, unlike in 2008, when a legal fiat was issued nationwide on all companies to cap a broad range of prices.
So far this year, the government hasn't punished any company for raising prices against the state's will, though it has fined one company--Unilever PLC --for making comments to the media on contemplated price hikes. The government held back from punishing Unilever when the company actually raised prices later.
Dupont Delays Seed In Soybean Spat (Source: CME)
DuPont Co. said it is indefinitely delaying the commercial launch of the genetically-modified soybean seed at the center of a long-running court battle with archrival Monsanto Co. DuPont's Pioneer Hi-Bred seed unit had been telling Wall Street that it would launch the Optimum GAT soybean line in 2013 or 2014. The seed, the launch of which has been delayed before, is controversial because DuPont, a Wilmington, Del., chemicals concern, is using a Monsanto gene in the soybean plant against the wishes of Monsanto, a crop-biotechnology giant based in St. Louis. DuPont's Pioneer unit said Tuesday that the soybean plant is in limbo because Monsanto refuses to give foreign regulators access to data necessary for the genetically modified crop to win import approvals. The interest of U.S. farmers in growing Optimum GAT soybeans would be severely limited if foreign countries don't accept them: about half of U.S. soybeans are exported.
Scott Partridge, a Monsanto vice president, said Tuesday that Monsanto offered more than a year ago to give DuPont permission to use the Monsanto gene in Optimum GAT soybean seed, as well as access to regulatory data, in exchange for compensation. "That offer is still on the table, and we remain open to dialogue with DuPont," Mr. Partridge said. Monsanto filed a patent-infringement suit over Optimum GAT in 2009 against DuPont, which then made anticompetitive allegations against Monsanto in the same St. Louis federal courthouse. The court fight, which is still under way, attracted the attention of the Obama administration's Justice Department, which in January 2010 opened a formal antitrust investigation into Monsanto's handling of the most widely planted genetically modified crop in the U.S., herbicide-tolerant soybeans. DuPont's Optimum GAT seeds are genetically modified to grow into soybean plants able to survive exposure to glyphosate-based weedkiller as well as another herbicide called acetolate synthase.
DuPont initially touted Optimum GAT to farmers as an alternative to them buying seeds equipped with Monsanto's gene for surviving glyphosate, the active ingredient in Monsanto's Roundup weedkiller. But Pioneer scientists ended up stacking Monsanto's Roundup Ready gene with their own glyphosate-tolerate gene. Monsanto argues in its lawsuit that the 2002 licensing agreement giving Pioneer access to Monsanto's Roundup Ready gene prohibits Pioneer from stacking it with any other company's glyphostate-tolerant gene in the same plant. DuPont interprets the 2002 contract differently and argues that any such gene-stacking prohibition would be illegal. "Monsanto has never made a good-faith offer to settle this case," said Doyle Karr, a spokesman for DuPont's Pioneer Hi-Bred unit. "Pioneer negotiated for, and received, broad stacking rights in 2002. There is no reason to pay twice for rights Pioneer has already acquired."
Palm oil edge up on demand; stock buildup seen
KUALA LUMPUR, June 15 (Reuters) - Malaysian palm oil futures edged up on Wednesday on robust export growth although traders bet expected stronger production of overall vegetable oil supplies in the coming months could still keep stocks growing and prices weak.
"Given the ample supply, the current prices are a bit too high. The export demand is there but that is not enough to lift the market much higher," said a trader with a foreign commodities brokerage.
Brazil says to grow quarter more soy, corn by 2021
BRASILIA, June 14 (Reuters) - Brazilian production of soy and corn is forecast to rise by around a quarter in a decade, the government of the agricultural giant said in a long-term forecast issued by on Tuesday.
The econometric forecast, updated annually, is based on historic increases and consultations with individual farming sectors in the world's top producer of coffee, sugar, orange juice and beef.
Drought to cut EU 2011/12 rapeseed crop- Oil World
HAMBURG, June 14 (Reuters) - Drought is likely to cut the European Union's 2011/12 rapeseed crop to 18.91 million tonnes from 20.56 million tonnes in 2010/11, Hamburg-based oilseeds analysts Oil World said on Tuesday.
"The deterioration of rapeseed production prospects is reaching alarming proportions," Oil World said. "The damage is most severe in Germany and France, the two major producers in the community. But sizeable crop losses also occurred in Poland as well as parts of the UK and Denmark."
Global 2011/12 soybean use above output- Oil World
HAMBURG, June 14 (Reuters) - Global 2011/12 soybean consumption is likely to exceed production by about 4 million tonnes with a smaller U.S. crop raising dependence on South American supplies, Hamburg-based oilseeds analysts Oil World said on Tuesday.
Global 2011/12 soybean production is likely to reach 265.50 million tonnes, below estimated season consumption of 269.7 million tonnes, Oil World forecast.
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