Weather-related concerns drove crude palm oil (CPO) futures on Bursa Malaysia Derivatives Exchange to their highest in over five weeks yesterday, as traders raced to cover positions in anticipation of heavy rains disrupting production in Malaysia and Indonesia. Contracts for February 2012 delivery rose to RM3,185 per tonne yesterday, the highest level since Nov 18 when they closed at RM3,248 per tonne. Climate-related impact on the production of soyabean, a rival oilseed, in Argentina and Brazil also shored up prices. (Financial Daily)
Soybeans (Source: CME)
US soy futures end lower Wednesday, retreating from sharp recent gains amid profit-taking and farmer selling. The market rallied at mid-day on spillover support from corn but later pulled back. While hot, dry weather is a concern for South American crops generally, it is not yet as much an issue for soybeans, traders say. Traders also question whether demand can stay strong above $12. CBOT Jan. soybeans end down 1 1/2c to $11.98 1/4 a bushel.
Soybean Meal/Oil (Source: CME)
March CBOT soyoil ends down $0.07 to $52.16. March soymeal joins corn and wheat, ending up $2.40 to $314.10 per short ton.
S.American soy crop fear lifts palm oil to 5-week high
KUALA LUMPUR, Dec 28 (Reuters) - Malaysian crude palm oil futures climbed to a near five-week high as dry weather in South America sparked concerns about lower soybean yields, potentially tightening soyoil supplies.
"In the short term, the euro zone debt crisis will fade from palm oil traders' focus," said a trader with a foreign commodities brokerage in Kuala Lumpur.
South Brazil, key Argentina soy critically dry
BRASILIA, Dec 27 (Reuters) - No rain is in sight for thirsty soy-growing areas in southern Brazil and in Argentina, forecasters said, threatening crops already hit by long dry stretches and causing futures prices to jump on Tuesday.
December rainfall in Brazil's southernmost state Rio Grande do Sul has been far below the average, which is bad for newly seeded crops, and the situation is growing critical in neighboring Argentina, the top exporter of soy-derived products.
South Brazil soy to stay dry, mostly wet elsewhere
BRASILIA, Dec 27 (Reuters) - Brazil's southernmost soy state Rio Grande do Sul should be dry for the rest of the year, forecaster Somar said Tuesday, with rainfall in December far below the average, threatening the newly-seeded crop with no rain on the horizon.
The center west and southeast, including Brazil's No. 1 soy state Mato Grosso, will see plentiful rain from now through early January, helping plants mostly at a later stage of development. Mato Grosso harvesting should begin within days.
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