20120412 1109 Soy Oil & Palm Oil Related News.

Local palm oil inventory eased to below 2m tonnes in March after staying above the mark for the past seven months, thanks to export-led demand from major consuming nations. Crude palm oil (CPO) production for the month under review stood at 1.21m tonnes, up 2.13% from 1.19m tonnes in the previous month. CPO imports shrank significantly by 78.4% to 27,908 tonnes in March from 129,344 tonnes in February. A trader said this was due to the limitation as a result of the Indonesian lower refined palm oil export duty structure imposed in October last year which encouraged more CPO to be refined by its own downstream refineries. (StarBiz)

Soybean futures drifted lower with old-crop contracts ending 3 to 6 cents lower. September ended 5 1/4 cents lower, with November down 5 3/4 cents. The rest of the market ended mixed. A lack of fresh news was uninspiring for market bulls, who are used to getting a dose of daily news. (Source: CME)

Soybean Complex Market Recap (Source: CME)
Wed 11 Apr 2012 14:30:02 CT
May Soybeans finished down 4 at 1422, 9 1/4 off the high and 7 up from the low. July Soybeans closed down 3 at 1424 1/4. This was 7 1/2 up from the low and 8 1/4 off the high. May Soymeal closed down 3 at 386.8. This was 0.7 up from the low and 3.0 off the high. May Soybean Oil finished down 0.52 at 56.45, 0.5 off the high and 0.23 up from the low. May soybeans closed lower for the third session in a row as long liquidation selling emerged to pressure. A supportive tilt to outside market forces such as the weaker US dollar and an early surge in the US stock market helped support the higher opening but sellers were active early and the market was quickly showing moderate losses on the day. Talk of the extreme overbought technical condition of the market and follow-through technical selling from the weak technical action yesterday helped to spark long liquidation selling. The COT report from Friday showed a record high net long position from fund traders in meal and soybeans and the open interest for soybeans for preliminary data from the CBOT showed a new record high 787,472 contracts and this has traders nervous over the possibility of a corrective break. Traders see weekly export sales for release tomorrow morning near 800,000 tonnes as compared with 1.113 million tonnes last week.

Soy market bulls should beware commercial shorts (Source: CME)
By Thomson Reuters - Wed 11 Apr 2012 09:28:01 CT
Soybean market bulls have gotten excited lately about the recent surge to record levels in large speculator positions, arguing that expanding non-commercial interest is a sign of growing confidence that soybean prices will gain further ground in the months ahead. The problem is, commercial traders -- actual end-users of the commodity concerned -- are taking an equally aggressive stance on the short side of the market, suggesting an interesting standoff may be developing between two of the largest categories of trader in the soybean market.

US cuts Latam soy estimate due drought, prices rise
WASHINGTON, April 10 (Reuters) - Drought in major soybean producers Brazil and Argentina cut their crops more deeply than expected, the U.S. government said Tuesday in a report that could keep food prices on the rise.
While a more than 20 percent rally in soybean prices this year has reignited concerns over food inflation, the outlook for corn supplies appeared upbeat after the Agriculture Department said end-season U.S. stockpiles would be higher than traders had estimated as ranchers use more wheat in livestock rations.

Canada canola oil shipments to U.S. surge
WINNIPEG, Manitoba, April 10 (Reuters) - Canada's canola crushers are processing the oilseed at a record-brisk pace, as demand for canola oil heats up among U.S. makers of biodiesel and food products like potato chips.
The United States has long been a key export market for canola, Canada's second-biggest crop after spring wheat, but its appetite has spiked in the past year.

Drought punishes Brazil soy crop; corn crop surges
SAO PAULO, April 10 (Reuters) - Drought blighting Brazil's soybean crop sliced more than 3 million tonnes off the government's 2011/12 estimate on Tuesday and will buoy futures prices for the key source of protein and livestock feed by trimming exports.
Soy output from the No. 2 producer after the United States will fall to 65.6 million tonnes this season, which is weeks away from finishing harvest, despite the 3.4 percent expansion in area to a record 25 million hectares (62 million acres).