Soybeans (Source: CME)
US soybean futures slide near 1 year low. The declines were driven by traders continuing to reduce risk exposure amid uncertain global economies and price pressure from the influx of freshly harvested soy supplies, analysts say. The instability of world financial markets are keeping traders, importers and domestic processors on edge, leaving many on the sidelines awaiting a calmer economic client before taking on risk, says John Kleist, analyst with ebottrading.com. Private crop forecasters raising their soy production outlooks aided the lower theme. CBOT Nov soy dropped 17 1/2c at $11.60/bushel.
Soybean Meal/Oil (Source: CME)
US soy product futures tumble with soybeans, succumbing to broad based risk reduction by investors. Uncertain world economic outlooks, increased availability of soybeans for crushing and sluggish demand combined to limit buyer's appetite for soymeal and soyoil, analysts say. CBOT Dec soymeal dropped 1.6% to $302.10/short ton, and Dec soyoil slid 2% to 49.00 cents/pound.
Palm Oil Inventories in Malaysia Climb as Production Recovers (Source: Bloomberg)
Palm oil stockpiles in Malaysia, the second-largest grower, probably advanced to 2 million metric tons for the second time this year in September as harvests rebounded and exports dropped, showed a Bloomberg News survey. Inventories climbed 6.4 percent from 1.88 million tons in August, according to the median estimate in a survey of three analysts and two plantation companies this week. Stockpiles were 1.71 million tons a year earlier and exceeded 2 million tons last time in June, according to the Malaysian Palm Oil Board, which is scheduled to publish the official estimates on Oct. 10. Rising reserves may weigh on futures in Malaysia, which have fallen 29 percent from a 35-month high of 3,967 ringgit ($1,239) a ton on Feb. 10, and potentially curb profits at producers including Sime Darby Bhd. (SIME) and PT Astra Agro Lestari. Futures in Kuala Lumpur may trade between 2,800 ringgit and 3,100 ringgit until the middle of November, Dorab Mistry, director at Godrej International Ltd., said Sept. 25.
‘It’s normal for stocks to build above 2 million tons in the last few months of the year, especially as production peaks around October and November,” said Victor Thianpiriya, an agricultural commodity analyst at Australia & New Zealand Banking Group Ltd. “The strength of exports at the moment, given how cheap palm oil is compared to competing oils, is what’s keeping stocks at close to 2 million tons.”
Output probably gained 6 percent to 1.77 million tons in September from a month earlier, while exports dropped 7.1 percent to 1.57 million tons, the survey showed. Shipments fell 6.3 percent to 1.52 million tons in September compared with 1.62 million tons in August, surveyor Intertek said Sept. 30. Palm oil production probably gained 8.8 percent to 13.8 million tons in the nine months through September from a year earlier, according to the survey. Output may increase to 18.3 million tons in 2011 from 17 million tons last year, Choo Yuen May, director-general of the Palm Oil Board, said Aug. 8. Output typically peaks between July and October. December-delivery futures fell 1.2 percent to end at 2,810 ringgit a ton in Kuala Lumpur yesterday, according to Bloomberg data. The most-active contract has slumped 26 percent this year.
“I don’t see why the major import markets wouldn’t continue to keep buying, because previously, every time the prices got down to 3,000 ringgit per ton, you’ve had a big uplift in purchases from China, India and Pakistan,” said ANZ’s Thianpiriya. “I don’t see why the demand would fall away now with prices at 2,800 ringgit, especially given that the discount to competing oils hasn’t changed substantially.” Palm oil’s discount to soybean oil was $211 per ton today. That compares with an average of $164.03 a ton this year, according to data compiled by Bloomberg. It widened to $289.97 on Aug. 31, the most since 2008.
Palm oil touches new one-year low as economic woes grip markets
KUALA LUMPUR, Oct 4 (Reuters) - Malaysian palm oil futures touched a fresh one-year low as investors fled commodity markets on concerns Greece may be unable to avoid a default that could unleash a financial crisis and drag the world into a recession.
"Nothing looks good around the corner from here. For the palm oil planters they are still making a good profit at these levels," said a trader with a foreign commodities brokerage.
Argentine soy crushing falls 21 percent in August
BUENOS AIRES, Oct 3 (Reuters) - Argentine soy crushing fell 21 percent year-on-year in August to 3 million tonnes, following a record 2009/10 crop and a smaller 2010/11 harvest, the government said in its latest crushing report.
Argentina is the world's largest supplier of soyoil and soymeal and the No. 3 exporter of the unprocessed oilseed.
Brazil new soy crop seen at record 75.2 mln T-Celeres
SAO PAULO, Oct 3 (Reuters) - Brazil's new 2011/12 (September-August) soybean crop is seen at a record 75.2 million tonnes versus 74.9 million tonnes harvested last season, analysts Celeres said on Monday.
Area planted to soybeans is forecast to reach record territory at 25 million hectares (61.8 million acres), up 3.6 percent from last season, Celeres said in its monthly forecast of the crop.
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