Plantation: Assistance for downstream players affected by Indonesia export palm oil duty
Sources said Malaysia is drawing up an action plan, which will likely include reforms in its crude palm oil (CPO) export duty policy and a new fund estimated at over RM1bn, to assist local downstream players badly affected by Indonesia's palm oil export duty structure. While the local CPO export duty has remained unchanged at 23% since the 1970s, Indonesia's CPO refined products export duties have been drastically slashed by more than half since October last year, and currently range from 3% to 20%. Under the new duty structure, Indonesian palm oil refiners are expected to reap 5% to 8% higher profit margins compared with the traditional operating profit margins among Malaysian at 3% to 6%. The Government is in the final stage of putting together appropriate measures for a rescue plan to help the RM6bn local palm oil downstream industry. (Starbiz)
Indonesia plans US$5.6bil company to compete with Sime Darby, Wilmar
Indonesia's government plans to create one of the world's largest palm oil and rubber firms in March by combining state planters with total assets of US$5.6bil, a government minister told Reuters. A planned listing of the firm will tap investor interest in a country with a recently acquired “investment grade” rating and create a rival to top regional planters such as Malaysia's Sime Darby and Singapore's Wilmar. The government will consolidate the assets of 15 state firms, whose revenues last year stood at around 40 trillion rupiah (US$4.45bil), under parent company PT Perkebunan Nusantara III. (Source: The Star)
Soybeans (Source: CME)
US soybean futures ended modestly higher, trading in tandem with movement in the US dollar. Prices traded in both negative and positive territory, with USD fluctuations in focus as uncertainty about South American output offset fundamental pressure from sluggish export demand, analysts say. Without a fundamental event to direct prices, traders eyed outside markets, playing more of a waiting game in the absence of directives to break futures out of their recent trading range, analysts add. CBOT March soybeans ended up 1 3/4c to $12.17/bushel.
Soybean Meal/Oil (Source: CME)
Soy product futures edge higher, mimicking the up and down price movements of soybeans. The markets lacked fresh fundamental directives to push prices, leaving traders focused on outside markets for guidance, analysts say. Two-sided price action in the US dollar index produced mixed action in soymeal and soyoil. CBOT March soymeal ended up $1.10 to $323.40/short ton; March soyoil finished up 0.01c to 51.19c/pound.
Argentine Farmers Celebrate Soy-Saving Series Of Showers (Source: CME)
A steady series of showers over the past week came just in the nick of time for Argentina's thirsty soybeans, setting them on course for a relatively healthy crop. The rain "was a significant relief, that will allow for very good growth of the late soy planted in January," the Buenos Aires Cereals Exchange said in its weekly crop report. "In general, the rain helped boost soil moisture levels ... helping the late soy the most," said brokerage Panagricola vice president Ricardo Baccarin. In the central farm belt, "most of the early-planted soy was also favored by solid rainfall, guaranteeing the water needed for the advanced reproductive phases those crops are currently going through," the exchange said. However, analysts warned that the crop has already suffered damage and that more rain will be needed through February. About 10% of the soybean crop's potential output has been lost already, said Francisco Mariani, analyst with farm-services company Lartirigoyen.
Analysts forecast 2011-12 soybean production between 45 million and 49.5 million metric tons -- well short of the record 54.5 million tons harvested in the 2009-10 season. Argentina is the world's second-largest corn exporter, leads soyoil and soymeal exports and ranks third in global soybean exports. Global grain traders have been closely watching weather conditions in both Argentina and Brazil for signs of a snap in the drought which would stem crop losses. The corn crop has already suffered major losses with potential production down by over a third. Early in the season, many had expected production to top 30 million tons. Now, the Buenos Aires exchange predicts corn output of just 22 million tons. After the severe drought in December, recent showers brought relief to the late-planted corn, but were too late for the fields planted early, the Buenos Aires Exchange said. Recent showers are a boon, but below-average rainfall is expected to continue in the coming months due to the La Nina weather phenomenon.
La Nina involves the periodic cooling of the equatorial Pacific Ocean that usually brings dry weather to the farm belts of Argentina, Uruguay, Paraguay and the south of Brazil. La Nina is expected to fade in March or April, but its effects will linger through the southern hemisphere winter with dryness continuing until October or November, according to Eduardo Sierra, chief climatologist for the Buenos Aires Cereals Exchange.
VEGOILS-Palm oil dips on ringgit; upbeat global data caps losses
SINGAPORE, Feb 2 (Reuters) - Malaysian crude palm oil inched down as the ringgit currency strengthened against the U.S. dollar, making it expensive for refiners to buy feedstock to process at a time when demand has slowed.
"Market volume is on the low side as we are heading towards another long weekend, so these two days the market will not be too active," said a trader with a foreign commodities brokerage in Kuala Lumpur.
Brazil 11/12 soybean crop seen 71.9 mln T-Abiove
SAO PAULO, Feb 1 (Reuters) - Brazil's 2011/12 soybean crop that is now being harvested is seen at 71.9 million tonnes, down from a previous view earlier in the month of 74.6 million tonnes, the grain crushing industry association Abiove said on Wednesday.
Abiove said exports would also fall over the February-January commercial to 33 million tonnes from 34 million tonnes previously forecast.
High demand whittled record canola crop-trade
WINNIPEG, Manitoba, Feb 1 (Reuters) - Strong export demand for canola chewed through much of Canada's record-large harvest of
the oilseed last autumn, leaving year-end stocks slightly smaller than they were a year earlier, according to traders and
analysts.
In a Reuters poll, eight traders and analysts estimate, on average, there were 9.1 million tonnes of canola in farm bins and
grain elevators on Dec. 31 - down 3.5 percent from a year earlier.
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