Soy Oil chart reading : downside biased.
Soybeans (Source: CME)
US soybean futures slide to a four-week low as widespread jitters surrounding the global economy encouraged traders to reduce risk exposure in the market. Spillover weakness from a sharp sell-off in corn futures for the third consecutive day, lagging demand and favorable weather form crop development weighed on prices as well, analysts say. However, prices continued to hold within recent ranges, as concerns about potential acres losses in the face of tight supply outlooks, limited declines, analysts add. CBOT July soy down 17 1/2c at $13.50 1/2/bushel.
Soybean Meal/Oil (Source: CME)
Soy product futures tumbled in unison with soybeans, succumbing to widespread selling across commodity markets, analysts said. Debt issues in Europe raised enough concerns to entice traders to reduce risk exposure in riskier asset classes, analysts said. CBOT July soyoil ended down 0.73c at 56.32 cents/pound, and July soymeal finished down $6.30 at $353.70 short ton.
Argentina Government Trims Soy Forecast, Raises Corn Forecast (Source: CME)
Argentina raised its corn forecast and slightly trimmed its soybean forecast in its monthly crop report, as the harvests near completion and the amount of final output becomes clearer. Final production from the 2010-11 corn crop was raised to 21.6 million metric tons, up from 20.9 million tons forecast by the agriculture ministry a month earlier. Argentina is the world's second-largest corn exporter after the U.S. About 84% of the corn crop has been harvested so far. The ministry trimmed its forecast for soybean production to 49.6 million tons, down from 50.4 million tons. Argentina leads soymeal and soyoil exports and ranks third globally for soybean exports. So far, about 97% of the soybean crop has been harvested.
Meanwhile, winter wheat planting is in full swing and the ministry trimmed its forecast for fields planted with the cereal to 4.7 million hectares from five million. Argentina is a leading global wheat exporter, with the bulk of shipments going to neighboring Brazil.
Focus on Australia canola crop as supplies tighten
SYDNEY, June 16 (Reuters) - Australia's official 2011/12 canola crop estimate may be too optimistic as a mice plague is threatening production in the world's second-largest exporter of the oilseed, an industry official said on Thursday.
The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) on Wednesday projected the 2011/12 crop could rise 6 percent to 2.3 million tonnes but farmers saw risks.
Palm oil at 5-wk lows as stocks seen hitting 2 mln T
KUALA LUMPUR, June 16 (Reuters) - Malaysian palm oil futures dropped to more than five-week lows on Thursday as traders cut back on worries that stocks could grow beyond 2 million tonnes this month.
"I think 3,000 ringgit needs to come, sooner or later. We are on track for declines and that is helped by weaker crude oil and soyoil as well," said a trader with a foreign commodities brokerage.
Dry weather a threat to US corn, soy - forecaster
CHICAGO, June 15 (Reuters) - U.S. corn and soybean production could be hampered by drier-than-usual weather this summer at a time when global food supplies already are tight due to crop failures around the world, a top private forecaster said on Wednesday.
"There will be dryness out there," said Drew Lerner, president and senior agricultural meteorologist of World Weather Inc. "There will be some yields that are cut down."
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