Soybean Complex Market Recap (Source: CME)
August Soybeans finished up 1 at 1572 1/2, 16 1/2 off the high and 13 1/4 up from the low. November Soybeans closed up 6 1/2 at 1529. This was 18 1/2 up from the low and 13 1/2 off the high. August Soymeal closed up 3.4 at 466.7. This was 5.7 up from the low and 3.3 off the high. August Soybean Oil finished down 0.48 at 53.34, 0.7 off the high and 0.26 up from the low. November soybeans closed moderately higher on the day but had a quiet inside trading session. Strong gains in corn and meal helped to support the market while oil recovered from sharp losses early to close just slightly lower on the day. A steep sell-off in palm oil overnight helped to pressure soybeans oil. The soybean market had "less" support than corn as traders see improved chances for a decent rain event for the second half of next week for Ill, Indiana and Ohio which could help stabilize soybean crops but may not help corn much. While outside market forces were extremely negative early in the day (weakness in stocks, energies, metals and a deflationary fear for the global economy), traders remain concerned with a threatening forecast for Iowa into next week. Some models show 1/4 to 1/2 inch of rain for Iowa into the weekend but temperatures are on the rise with mid-90's to low 100's for much of the state into the middle of next week. Traders see a continued rapid drop in crop conditions into next week for the western Corn Belt. Weekly export sales for soybeans came in at 332,100 metric tonnes for the current marketing year and 427,100 for the next marketing year for a total of 759,200 which was well above expectations. As of July 5th, cumulative soybean sales stand at 104.1% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 100.1%. Meal sales came in at 95,700 metric tonnes for the current marketing year and 74,000 for the next marketing year for a total of 169,700. Sales of 58,000 metric tonnes are needed each week to reach the USDA forecast. Net oil sales came in at 33,900 tonnes. Open interest was up 15,615 contracts for soybeans yesterday. Taiwan passed on a combo tender for soybeans and corn.
Cooking-Oil Imports by India Fall as Rupee Drop Deter Buyers (Source: Bloomberg)
Cooking-oil purchases by India, the world’s biggest consumer after China, probably dropped for the first time in five months in June after a plunge in the rupee to a record low deterred importers. Futures in Malaysia tumbled. Shipments slid to 850,000 metric tons last month from 862,550 tons a year earlier, according to the median estimate in a Bloomberg survey of five processors and brokers. Imports of crude and refined palm oil declined 16 percent to 600,000 tons from 712,356 tons, the survey showed. The Solvent Extractors’ Association of India will publish shipment data next week. Palm oil, used in candy and fuel, has slumped 17 percent from a 13-month high in April on concerns that a slowdown in China and the European debt crisis may curb demand. Lower Indian imports may boost inventories in Malaysia, second-largest palm oil supplier, as production enters the peak period. The rupee sank to a low of 57.3275 to a dollar on June 22, raising the cost of commodities priced in the U.S. currency.
“The rupee depreciation made imports expensive and kept importers away,” said Sandeep Bajoria, chief executive officer of Mumbai-based brokerage Sunvin Group. “Buyers were also holding back purchases to take advantage of the lower Indonesian export tax in July.” Indonesia cut the tax rate for exports of crude palm oil in July to 15 percent, a level last seen in January, from 19.5 percent in June, Deddy Saleh, director general of foreign trade at the Trade Ministry, said June 25. The base price to calculate the levy was cut to $944 a ton from $1,098, he said.
VEGOILS-Palm oil falls on U.S. wet weather forecast
SINGAPORE, July 12 (Reuters) - Malaysian crude palm oil futures tumbled as traders took profit partly on an updated weather forecast for rain in the drought-hit, soy-producing U.S. Midwest over the weekend that could ease concerns of tight oilseed supply.
"All the bullish factors have already been laid on the table, so traders just have to take profit and decide on what to do next," said a trader with a foreign commodities brokerage in Malaysia.
India's June refined palm oil imports seen down
NEW DELHI, July 11 (Reuters) - India's refined palm oil imports fell in June as the world's biggest vegetable oil importer looked likely to raise taxes to cut cheap supplies from Indonesia, traders surveyed by Reuters said.
India's refined vegetable oil imports have been rising since October 2011 when Indonesia, the world's No. 1 palm oil producer, tweaked its export duties to make refined oils more attractive than crude palm oil to promote its own refineries.
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