Malaysia is assessing the feasibility of implementing its own sustainable palm oil certification even as efforts are stepped up to raise the competitiveness of the country's palm oil and related downstream products globally. The Malaysian Sustainable Palm Oil (MSPO) is under consideration, Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said. Dompok also said Malaysian and Indonesia policymakers would soon meet to resolve issues on the differences in export tax structures for palm oil products. (Financial daily)
Soybeans (Source: CME)
U.S. soybean futures rallied, continuing a three day a correction from prior losses on technical buying and market perception of fresh export demand. There is speculation of China buying U.S. or South American soybeans, a fundamental feature helping to underpin soybeans' rally. Traders viewed most of the gains as technical in nature, with buyers encouraged that prices were oversold after traders were unable to press prices through early October lows. The combination of light new buying on the lows, backed by renewed speculation of China's buying, opened the door for a strong correction in soybean prices, said John Kleist, senior analyst with ebottrading.com. CBOT Jan soybeans ended up 22 cents, or 1.9%, at $12.00 1/4/bushel.
Soybean Meal/Oil (Source: CME)
Soy product futures ended higher, with soyoil futures soaring near a one-month high. Advances in soyoil were driven by supportive demand outlooks, with crude oil rising near $100 a barrel making margins on biodiesel produced from soyoil more attractive, says Jack Scoville, analyst with Price Futures Group. Soyoil also drew support from fundamentally bullish inventory data from Monday's NOPA October soy-crush report. CBOT Dec soyoil ended up 2.7% or 1.38c at 52.60 cents/lb, and Dec soymeal end up $2.20 at $301.40/short ton.
Malaysia In Talks With Indonesia On Reviewing CPO Export Taxes - Minister (Source: CME)
Top palm oil producers Malaysia and Indonesia are reviewing export taxes on palm oil and may announce new measures by the year-end that will benefit downstream palm oil processing industries in both countries, Malaysia's Commodities Minister Bernard Dompok said. "Both countries are cooperating to develop downstream palm oil industries," he said on the sidelines of an industry conference. Officials from Malaysia's Commodity Ministry have held several meetings with Indonesian counterparts in the past few weeks following a bilateral meeting late last month between Prime Minister Najib Razak and Indonesian President Susilo Bambang Yudhoyono on the Indonesian island of Lombok. Dompok declined to elaborate on the proposals suggested by both parties.
An industry executive, who didn't wish to be named, told Dow Jones Newswires that Malaysian officials have proposed a revision of Indonesia's duties on refined palm product exports, lowering of Malaysia's high export tax on CPO as well as a duty-free quota on Indonesian-origin CPO bound for Malaysian ports. "These are just some of the suggestions that Malaysia is proposing to the Indonesians. We hope both governments will come to an agreement. Otherwise, some independent palm oil refiners will be out of business when Indonesia's [fresh] refining capacity comes on stream in the next 6-12 months," the executive said. Malaysia imposes a tax of 27% on crude palm oil exports to boost its downstream refining industry, which helped ramp up capacity in the past few years. Its refiners were also buying 80,000-100,000 tons monthly from Indonesia, whose annual production is usually around 23 million tons, compared with Malaysia's 17 million tons.
However, Indonesia raised export taxes mid-August to boost its refining capacity, which limited the availability of oil for exports and made it more expensive for Malaysian refiners to import Indonesian CPO. The maximum tax now is 13% for refined palm olein 22.5% for CPO.
Palm rises near 5-mth high, retreats on euro zone fears
JAKARTA, Nov 15 (Reuters) - Malaysian palm oil futures eased slightly after rising to their highest level in nearly five months as lingering concerns about the euro zone's debt offset robust demand and expectations of falling output.
"Europe is on everyone's mind -- what will eventually happen is anybody's guess," said a Kuala Lumpur-based palm trader. "But we have China's insatiable demand and supply constraints ... November and Dec are low production months."
Australia harvesting record canola crop
SYDNEY, Nov 15 (Reuters) - Australia farmers are busy harvesting an expected record canola crop of around 2.62 million tonnes, up more than 20 percent from the previous season's bumper crop, the Australian Oilseeds Federation (AOF) said on Tuesday.
Benign weather ahead of the harvest, which is now well advanced across most areas of Australia where the oilseed, also known as rapeseed, is grown, had boosted yields, AOF said.
Brazil soy planting picks up pace, passes halfway
SAO PAULO, Nov 14 (Reuters) - The planting of Brazil's soybean crop is well ahead of schedule and has surpassed the halfway mark for planting of a record area this year, grain analysts Celeres said on Monday.
Ample rains since late September in most soy producing regions have allowed producers to sow an early crop this year, unlike last season when spring rains were delayed by a month and a half due to the effects of La Nina.
Fresh rains forecast for Brazil soy belt - Somar
SAO PAULO, Nov 14 (Reuters) - Rains were forecast to return to Brazil's southern grain belt and push into the center-west region, as producers rush to plant the remaining half of the soy crop, weather forecaster Somar said Monday.
A slow moving cold front should begin to break up over the main grain producing areas after Tuesday and move into Brazil's northeastern farms and then, finally, out to sea.
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