Thursday, June 7, 2012

20120607 1041 Soy Oil & Palm Oil Related News.

Palm-oil inventories in Malaysia probably dropped to lowest level in more than a year in May, potentially curbing a slump in prices. Stockpiles fell 3.8% to 1.78m tonnes, the lowest since April 2011, from 1.85m tonnes a month earlier, according to the median in a Bloomberg survey of three plantation companies and two analysts. (Bloomberg)

Pro Farmer: After the Bell Soybean Recap (Source: CME)
By Pro Farmer - Wed 06 Jun 2012 15:14:38 CT
Soybean futures posted strong gains today, settling 9 to 36 3/4 cents higher with old-crop contracts leading gains. Gains were mildly trimmed in after-hours trade. Funds bought an estimated 8,000 contracts (40 million bu.) of soybeans today. Outside markets were supportive as were weather concerns and news of a daily bean sale to China for 2011-12.

Soybean Complex Market Recap (Source: CME)
July Soybeans finished up 36 3/4 at 1386 1/4, 5 3/4 off the high and 33 1/2 up from the low. November Soybeans closed up 22 1/4 at 1299 1/4. This was 23 3/4 up from the low and 7 1/4 off the high. July Soymeal closed up 14.6 at 414.6. This was 14.7 up from the low and 1.9 off the high. July Soybean Oil finished up 0.75 at 49.25, 0.4 off the high and 0.65 up from the low. July soybeans were trading near 36 1/2 cents higher late in the day and off just 6 cents from the mid-session peak. A major shift in risk attitudes from global money managers, increased demand signs, a strong cash market and questionable weather for the next two weeks are factors which encouraged short-covering and new buying early in the session. Private exporters reported a sale of 120,000 tonnes of US soybeans to China for the 2011/12 season and this helped to support the July contract. Cash markets are already pushing higher in the past couple of days as exporters attempt to fill previous export orders with slow producer selling. Initial crop conditions are favorable for the US crop but mostly dry weather in May leaves topsoil conditions exceptionally dry and this increases the need for better rains next week and the following week to expect favorable early growth. Rain events late in May missed southern Illinois, southern Indiana, Missouri and Arkansas and these areas could see a significant drop in crop condition ratings if timely rains do not emerge. Short to very short topsoil conditions (upper 6 inches of soil) exist for 56% of Indiana, 54% of Illinois, 82% for Missouri and 74% of Arkansas as of June 3rd. These four states represented 31.7% of the US soybean crop production last year. Ideas that the market is oversold after recent losses added to the positive tone into the mid-session with a surge higher in the stock market and weakness in the dollar helping to support. Some traders see several rain events next week which could push rain totals to 1/2 to 1 1/2 inches and the high end estimates would ease dryness concerns which 1/2 inch or less in some areas may not be enough to avoid a quick return to stress "if" temperatures heat up the following week. Argentina producers will halt grain sales for the next week in protest of higher taxes.

VEGOILS-Palm gains on firm demand; euro zone fears linger
SINGAPORE, June 6 (Reuters) - Malaysian palm oil futures extended gains, as investors bet on rising Asian demand for the edible oil although caution prevailed due to concerns the euro zone crisis will crimp economic growth and commodity demand.  
"After the shock on Monday, for the past two days prices have recovered lost ground. But on the backdrop, the euro zone problem is still not solved," said Ker Chung Yang, commodities analyst with Phillip Futures in Singapore.

Brazil gov't cuts soy estimate, raises corn view
SAO PAULO, June 5 (Reuters) - Brazil's government trimmed its 2011/12 soybean crop estimate on Tuesday after drought ravaged output in the world's second biggest producer this season, but raised its forecast of corn output to a record.
U.S. soybean futures  rose after Brazil's food supply agency Conab cut its production forecast and U.S. crop ratings disappointed.

Oil World sees US soy exports up 40 pct in 2012/13
AMSTERDAM, June 5 (Reuters) - US soybean exports will increase by nearly 40 percent from September 2012 to February 2013 to compensate for the shortfall in the South American crop which has been hit by drought, German-based analyst Oil World said on Tuesday.
"Insufficient South American export supplies of soybean, soymeal and oil will shift world demand to US origin in Sept-Feb 2012/2013," Oil World said.

ITS CPO export up 2.4% to 1,382,091 tonnes for the period of 1~31 May 2012.
SGS CPO export down 0.25% to 1,333,869 tonnes for the period of 1~31 May 2012.

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