Soybeans (Source:CME)
US soybean futures extend their recent rally, climbing to fresh five-month highs on strong export demand and declining South American crop forecasts. Soybeans grabbed the spotlight in the grain and oilseed complex, due in large part to an increase in export demand. Soybeans rallied to new near-term highs for the sixth consecutive day, as traders remain relentless buyers amid worries government forecasters are underestimating export demand. Smaller South American production forecasts continue to support soybeans, reflected by China, the world's leading importer of soybeans buying large amounts of beans from US last week, analysts say. CBOT May soybeans end up 15 3/4c at $13.02 1/2/bushel.
Soybean Meal/Oil (Source:CME)
Soy product futures rallied to multi-month highs in unison with soybeans. Ongoing worries about smaller South American crop potential and the positive impact that may have of US soy product demand attracted speculative buyers, analysts say. CBOT May soymeal ended up $7.40 to $343.50/short ton, May soyoil climbed 0.21c to 54.86 cent/pound.
Global Soybean Output To Hit 3-Year Low (Source:CME)
The International Grains Council has lowered its forecast for global soybean output in 2012-13 by almost 4%, as dry weather has affected yield potential in many areas of South America. Production is forecast at a three-year low of 246.5 million tons, down 7.6% from 2011-12 because of lower output in all major producing regions. The IGC tabulates its data over an aggregate marketing year covering all major producing and trading countries. "Adversely dry conditions during the growing season have negatively affected yields in many areas, particularly northern Argentina, southern Brazil and Paraguay," it said in a recent report. In southern Brazil states including Parana and Rio Grande do Sul, low soil moisture has significantly hampered crop development, it said. Brazil's soybean output may fall 8% to 69.4 million tons from the record reached in 2011-12; down 3.3% from the IGC's earlier forecast, it said.
The IGC lowered its forecast for Argentina's soybean output in 2012-13 by almost 10% to 46 million tons, down 6% from last year's actual production. "Prolonged dryness has resulted in irreversible yield reduction in some areas of Argentina," it said. Paraguay's production may fall by 40% to just 5 million tons, it said. Meanwhile, demand is strong. Although the IGC lowered its forecast for China's soybean imports by 1 million tons, at 56 million tons, it would be a record, up 7% from last year. The pace of South America's soybean exports from last year's harvest have been exceptionally strong, and shipments from Brazil and Argentina were almost three times higher during October-December than year earlier, IGC said.
However, shipments from South America will likely slow in the next few months due to reduced output, it said. The IGC lowered its forecasts for Brazil and Argentina's soybean exports in 2012-13 by 2.2% and 17%, respectively, while raising it forecast for U.S. soybean exports by almost 3% due to a shift in demand from South America. The global soymeal trade will likely reach a record 58.4 million tons, up 2.6% on year, the IGC said, citing rising demand in East Asia and the European Union.
Palm hits near 9-mth high on exports, firm crude
SINGAPORE, Feb 27 (Reuters) - Malaysian crude palm oil futures rose to an eight-and-a-half month high with export data pointing to improved demand prospects and high oil prices also providing support.
"The export trend is positive for crude palm oil prices. High oil prices will also be supportive because about 11 percent of global vegetable oil is used for biodiesel," said Alan Lim, research analyst with Malaysia's Kenanga Investment Bank.
India's rapeseed output in 2012 seen down-trade body
NEW DELHI, Feb 27 (Reuters) - India's rapeseed output is expected to fall 8.5 percent to 6.3 million tonnes in 2012 on lower acreage of the oilseed crop, a trade body survey showed on Monday.
Reuters reported on Feb. 1 that the county could see a drop in the rapeseed crop, meaning that vegetable oil imports by the world's top buyer could rise by about a half a million tonnes in the import year ending Oct. 31.
Malaysia IOI to build Indonesian palm oil refinery in 3 yrs
PUTRAJAYA, Malaysia, Feb 27 (Reuters) - Malaysia's second largest listed palm planter IOI Corp will build a palm oil refinery in Indonesia once it generates enough feedstock from its plantations in Borneo island in the next three years, a top official said on Monday.
Foreign firms have been scrambling to set up processors in the world's top producer of the tropical oil to tap higher margins after Jakarta last year slashed export taxes of the refined grade to half of that of the crude variety.
New Britain Palm Oil 2012 output seen flat
JAKARTA, Feb 24 (Reuters) - Output from New Britain Palm Oil's Asia operations will be flat at 591,000 tonnes this year after soaring 21 percent in 2011, an executive said on Friday, adding that plantation expansion may rise by between 2,000-5,000 hectares per year.
Last year, palm oil output by NBPO, which is headquartered in Papua New Guinea and Singapore, rose 21 percent with the help of an acquisition the previous year and favourable weather, Executive Director Alan Chaytor told Reuters on Friday.
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