Wednesday, July 13, 2011

20110713 1010 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures bounce, climbing on the tailwinds of soaring corn and wheat futures. Soy market played the role of follower, said Rich Nelson, research director at Allendale Inc. A mostly neutral USDA crop report, and assumptions that it's too early to be concerned about soy yields until August, left futures without any fresh directives to stand on, Nelson says. Uncertainties of a long growing season limited downside potential, allowing soybeans garner support from neighboring grain futures. CBOT Nov soy end up 11 1/4c at $13.58 1/4.

Soybean Meal/Oil (Source: CME)
Soy product futures climbed in unison with soybeans. Soymeal futures led the advances, rising in step with other livestock feed, analysts say. Soyoil was higher but lagged the gains in meal and soy, as higher supply forecasts from USDA limited advances, traders say. CBOT Dec soyoil end up 0.06c at 57.32 cents/pound, and Dec soymeal rose $3.20 to $354.90/short ton.

Canada Expected To Set New Canola-Oil Export Record (Source: CME)
Canada is on schedule to report another record for canola-oil exports in the current crop year, breaking last year's record and representing a more-than-doubling in exports over the past six years. In the 2010/11 crop year, Canada is expected to report canola-oil exports of 2.340 million tons, a new record, exceeding the 2009/10 crop year's then-record exports of 1.819 million tons. In the 2004/05 crop year, Canada exported 900,000 tons of canola oil. The records come as Canada's domestic crush processors have increased and demand continues to grow. Chris Beckman, an oilseed analyst with the Market Analysis Group of Agriculture and Agri-Food Canada in Winnipeg, said the increase was primarily due to the U.S., which will import 56% of Canada's canola-oil exports.
"They [the U.S.] are diverting so much of their soyoil, and canola oil is known as a healthier oil because of lower saturated fats, so it is filling that niche in the market," Beckman said. The U.S. is pegged to import 1.3 million tons of Canadian canola oil in 2010/11. The other major purchaser of Canadian canola oil in the current crop year is China, with the Asian nation projected to purchase 800,000 tons of product. While canola-oil exports in the 2011/12 crop year are projected to come in at the same number as the current year, Beckman said the figure has the potential to be higher. "A lot of the exports will depend on the crush volumes," he said. "If we get good production and have enough that the crushers can buy and process it, then we could see exports continue to rise."

Ample SE Asian palm oil lifts S.American biofuel hopes
KUALA LUMPUR/NEW DELHI, July 7  (Reuters) - Likely record Asian palm oil stocks this year can comfortably bridge gaps in global cooking oil output, giving South America more leeway to pump competing soyoil into the biodiesel sector and cut dependence on crude.
Higher biodiesel use would support U.S. soyoil futures  and help to prop up benchmark palm oil prices  that have fallen 20 percent this year on growing stocks in top producers Indonesia and Malaysia.

Palm oil futures down on Euro debt woes
KUALA LUMPUR, July 12 (Reuters) - Malaysian palm oil futures fell 1.2 percent , trailing weaker overseas equity and commodity markets, as worries over euro zone debt's crisis triggered a sell-off.
"The Malaysian market was tracking overseas soyoil and soybean markets as well as the equity markets," said a trader in Kuala Lumpur.

India's June vegoil imports to hit highest level since Nov-survey
NEW DELHI, July 12 (Reuters) - India's vegetable oil imports may have risen 28 percent in June to their highest level since November as local supplies remain poor, with expectations buying will be buoyant again next month ahead of key festival feasts, a Reuters survey showed.
Domestic oilseed stocks are declining and the new crop is only just being planted, while buyers are looking ahead to India's festival season which runs from August to October and usually includes celebratory meals.

Brazil consultant sees record 2011/12 soy planting
SAO PAULO, July 11 (Reuters) - Brazil will expand the planted area of the 2011/12 soy crop by about 3 percent to a record 24.9 million hectares, consultancy Agencia Rural said on Monday, but it expected production to fall nonetheless.
Brazil is the world's No. 2 soy producer and exporter after the United States and would notch its fifth consecutive year of expansion in area if it plants more hectares again this year once the sowing period begins around September.

India May vegoil imports up 40 pct m/m
NEW DELHI, June 15 (Reuters) - India's vegetable oil imports in May rose to 664,133 tonnes from 475,123 tonnes in the previous month, a leading trade body said on Wednesday, the second straight monthly rise which was slightly higher than an average Reuters poll forecast.
Traders had been expecting the rise because local supply of oilseeds had dropped. The rising trend is expected to continue, helping the benchmark Malaysian palm prices  stay firm.

India's May vegoil imports seen up as local supply falls
NEW DELHI, June 10 (Reuters) - India's vegetable oil imports may have risen by 37 percent in May, the second straight monthly rise, as local supply dropped on depleting oilseeds stocks ahead of the summer planting season, a trend that is likely to continue next month, a Reuters survey showed on Friday.
Palm oil imports, which account for the bulk of India's cooking purchases, are expected to have risen 50 percent in May over the previous month, according to a survey of eight traders.

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