20120307 1013 Soy Oil & Palm Oil Related News.

Two speakers at the Palm and Lauric Oils Conference and Exhibition (POC 2012), Carotino Sdn Bhd executive director U.R. Unnithan and Nutrition GmBH vice-president Harald Sauthoff have forecast this year's CPO price would trade between RM3,100 and RM3,440 per tonne. Unnithan pointed out that if the Malaysian Government did not address the current local duty disadvantage compared with Indonesia's low palm oil export duty scheme, Malaysia's closing palm oil stocks could increase to 2.6m tonnes, thus putting pressure on CPO price to drop to possibly RM2,500 per tonne. He added that the local biodiesel industry could only be revived through government intervention to boost domestic consumption and create a level playing field with Indonesia. (StarBiz)

Malaysia is looking at constructive ways to assist palm oil downstream players counter Indonesia's new lower tax structure, which has affected 40% of local smallholders. Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said both Malaysia and Indonesia are still in talks to address the issues. (Bernama)

Soybeans (Source: CME)
US soybean prices end higher, rebounding after opening lower as optimism about export demand outweighs macro issues including a stronger US dollar and concerns about slower Chinese economic growth. Those concerns sparked a broader commodities sell-off. Markets still optimistic about Chinese soybean purchases from the US, with expectations for a smaller South American crop due to drought in Brazil. Price rise comes after a fall in soybean prices yesterday ended a two-week rally. CBOT May soybeans end up 10 1/4c at $13.35 1/4 a bushel.

Soybean Meal/Oil (Source: CME)
May soybean oil ends down 0.45c to 53.28c/lb. May soybean meal ends up $7.70 to $365.90 a short ton.

Palm oil slips for 3rd day; market seen overbought
KUALA LUMPUR, March 6 (Reuters) - Malaysian crude palm oil futures fell for a third day on Tuesday, on signs of a wider correction in the market that traders say went up too high last month, although losses were curbed ahead of a key price outlook meeting in Kuala Lumpur.
"The palm oil market is overbought and there should be a greater correction coming in," a trader with a foreign commodities brokerage said at the sidelines of the conference.

India's Feb oilmeal exports down 33 pct y/y-trade body
MUMBAI, March 6 (Reuters) - India's oilmeal exports fell 33 percent to 470,504 tonnes in February compared to a year ago, a leading trade body said on Tuesday, dragged down by a ban on the country's oilmeal imports by China.
Soymeal exports, which account for the bulk of India's oilmeal sales, were at 329,180 tonnes in February, down 39 percent from a year ago, the Solvent Extractors' Association of India said in a statement.

Brazil's soy crop slashed as drought weighs on data
SAO PAULO, March 5 (Reuters) - Drought over Brazil's main southern grain states this season pushed down harvest and export estimates on Monday for the world's second biggest soybean crop.
The fresh downgrades in the leading South American soy crop may give further support to Chicago soybean futures  which have been on a three-month tear, rising 21 percent since hitting a 14-month low mid-December.

Singapore's Olam sees crude support for palm
KUALA LUMPUR, March 6 (Reuters) - Firm crude oil may support benchmark palm oil prices this year, Singapore commodities firm Olam International Ltd  said on Tuesday, while the demand outlook in top buyers China and India is uncertain.
Prices of the edible oil, used in products such as food, cosmetics and biofuels, will trade in a range of 3,000 to 3,300 ringgit ($990-$1,100) a tonne in 2012, Vasanth Subramanian, senior vice president and head of the company's palm division, told Reuters.


Oil World sees firmer soyoil, palm oil prices
HAMBURG, March 6 (Reuters) - Global soyoil and palm oil prices are expected to firm in coming months partly because of poor South American soybean harvests coupled with high soyoil-based biodiesel output in Brazil and Argentina, Hamburg-based oilseeds analysts Oil World said on Tuesday.
"The further increase in South American biodiesel production despite the sharply reduced soybean production will erode South American soyoil exports," it said. "This will further raise the global dependence on palm oil and contribute to appreciating prices of soyoil, palm oil and other oils and fats."
South American drought is expected to cut global soybean supplies while there will be a smaller year-on-year increase in world palm oil production in April/September 2012 than in the same period in 2011, it said.
Argentina is forecast by Oil World to raise Jan/Dec 2012 biodiesel production using soyoil as feedstock to 3.0 million tonnes from 2.4 million tonnes in 2011.
Brazil will also raise biodiesel output, it said, so restraining soyoil exports and transferring more demand to palm oil.
For Jan./June 2012 it forecasts average prices for refined, bleached and deodorised (RBD) palm oil will approach $1,200 a tonne against $1,105 on Tuesday.
Soyoil prices fob Argentina may rise to or above $1,260 a tonne against current levels of around $1,205 a tonne, it said.