US soybean futures tumbled to six-month lows, fueled by broad based selling across asset classes. Fears of a global economic recession encouraged investors to reduce risk exposure, a feature that overshadowed fresh export demand and crop uncertainties. Almost 100% of the day's losses are attributable to macro economic factors, said Mike Zuzolo, president Global Commodity Analytics and Consulting. Investors pulled money off the table in risky assets, worried global economic weakness will last longer than expected, he adds. CBOT Nov soy dropped 37 1/2c or 2.8% to $12.83/bushel.
Soybean Meal/Oil (Source: CME)
Soy product futures tumble with soybean futures, driven lower by investors reducing exposure in risky commodity markets. Soyoil and soymeal were consumed with the risk off trade theme, as investors reduced positions across broader markets, analyst said. CBOT Dec soymeal was down 2.6% at $335.10/short ton, and Dec soyoil fell 2.5% to 53.94 cents/pound.
Palm drops to one-week lows on cloudy global outlook
KUALA LUMPUR, Sept 22 (Reuters) - Malaysian palm oil dropped to one-week lows after the U.S. Federal Reserve warned of significant risks to the world's largest economy, building on concerns of a recession stalling commodity demand growth.
"Palm oil is finally reacting to a sell-off. The question we should ask is: once the festival season is over, what happens them?" said a trader with a foreign brokerage in Malaysia.
India buys palm olein after Indonesia tax change -trade
KUALA LUMPUR, Sept 22 (Reuters) - India struck deals for 50,000 tonnes of refined, bleached and deodorised (RBD) palm olein from Indonesia in the last week, traders said on Thursday, in an immediate reaction to Jakarta's tax cut on exports of processed oils from September 15.
The world's largest vegetable oil importer bought the RBD palm olein cargoes at $1,100 to $1,120 CIF per tonne for October delivery to meet festival demand, Indonesian and Indian traders said.
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