Friday, July 20, 2012

20120720 1017 Soy Oil & Palm Oil Related News.

ITS CPO export down 23% to 764,273 tonnes for the period of 1~20 Jul 2012.
SGS CPO export down 22.5% to 768,555 tonnes for the period of 1~20 Jul 2012.

Pro Farmer: After the Bell Soybean Recap (Source:CME)
Soybean futures traded in a wide-range stretching from the teens to the 60s today. Futures ended with gains in the 20s to 40s through the January contract, while farther deferred months ended with double-digit losses. The National Weather Service's forecast for heat and dryness through October in the Midwest points to stress during the crucial pod fill stage for the soybean crop. Soybean supplies were expected to be tight even without production troubles.

Soybean Complex Market Recap (Source:CME)
August Soybeans finished up 45 3/4 at 1729 1/4, 19 3/4 off the high and 51 3/4 up from the low. November Soybeans closed up 31 at 1651. This was 37 1/2 up from the low and 22 3/4 off the high. August Soymeal closed up 18 at 532.0. This was 17.7 up from the low and 2.0 off the high. August Soybean Oil finished up 0.39 at 54.4, 0.3 off the high and 0.59 up from the low. August soybeans soared to new contract highs today after weather services reported a 30 day forecast calling for above normal temperatures and below normal rainfall this morning which sent soybeans to new contract highs. If the forecast develops, the high heat and below normal rainfall would occur during the middle of soybean pod-setting in the Midwest and likely cause further yield destruction. Temperatures will reach 95-105 degrees for the central and western Midwest this week causing further stress to soybean crops. India continues to see the effects of an underperforming monsoon season. Nearly a third of the Indian soybean crop could be experiencing significant moisture deficits due to the lack of rainfall. Soybeans also saw a boost from a positive soybean export sales report. Net weekly export sales for the week ending July 12th came in at 135,300 tonnes for the current marketing year and 272,300 for 2012/13 marketing year, for a total of 407,600. This was in line with market forecasts. As of July 12, cumulative soybean sales stand at 104.5% of the USDA forecast for 2011/2012 (current) marketing year as compared with 100.8% as normal for this time of the year. Net meal sales came in at 168,000 tonnes for the current marketing year and 108,900 for the 2012/13 marketing year for a total of 276,900 which was much higher than expected; especially for old crop. Net oil sales came in at 14,300 metric tonnes for the current marketing year and 6,000 for the 2012/13 marketing year for a total of 20,300. Bull spreading was active in soybeans and soybean meal, offering further evidence of the increased demand that is expected in the oilseed market. Outside markets were also supportive with crude oil surging and the US dollar lower on the day.

Bets build on soybeans hitting $20
--Gavin Maguire is a Reuters market analyst. The views expressed are his own--
CHICAGO, July 18 (Reuters) - November soybean futures have just surpassed their previous record high of $16.10 per bushel, set in the midst of the chaotic run-up in crop values in the summer of 2008.
But traders seem to be banking on the soybean market having much more upside room this year as sweltering heat and a lack of rain slash the yield potential of this year's crop to further deplete already tight inventories.

Soybeans Jump to Record as Drought Seen Eroding Harvests in U.S.(Source:Bloomberg)
Soybean futures rose to a record as the worst drought in more than 50 years threatens to damage crops in the U.S., the world’s biggest grower. Severe to exceptional drought expanded to 48 percent of the Midwest as of July 17 from 33 percent a week earlier, the government said today. The U.S. Department of Agriculture has declared almost 1,300 counties in 29 states as natural-disaster areas. Fields are in the worst condition since 1988, when drought reduced soybean production by 20 percent from a year earlier. “Soybeans are going downhill fast, and there are few signs for relief,” Gregg Hunt, a market analyst at Archer Financial Services Inc. in Chicago, said in a telephone interview. “Expanding drought will lead very tight U.S. supplies and higher prices to slow demand.”
Soybean futures for November delivery rose 2 percent to settle at $16.5225 a bushel at 2 p.m. on the Chicago Board of Trade, after reaching a record $16.7375. The previous all-time high for the most-active contract was $16.3675 on July 3, 2008. The December futures contract for soybean meal, a livestock feed, rose 1.7 percent to $487.30 for 2,000 pounds on the CBOT, after advancing by the exchange limit of $20 to a record $499. The price is up 18 percent this month. Soybeans are the second-largest U.S. crop, behind corn, valued at $35.8 billion in 2011, government figures show.

Soybeans Surge to Record as Midwest Drought Scorches Crop(Source:Bloomberg)
Crop prices surged in Chicago, lifting soybeans to a record, as the worst U.S. drought since 1956 scorched fields and raised chances of higher food prices. Soybeans reached $16.5125 a bushel today on the Chicago Board of Trade, surpassing the previous peak of $16.3675 on July 3, 2008. Corn rallied to the highest since 2008 and came within 1 percent of its all-time record, while wheat surged above $9 a bushel to the highest in almost four years. The U.S. has declared almost 1,300 counties in 29 states as natural-disaster areas because of drought. Corn and soybean fields are in the worst shape since 1988, when drought slashed U.S. corn output by 31 percent, Department of Agriculture data show. The USDA cut its estimate for this year’s corn crop by 12 percent on July 11, saying production may reach 12.97 billion bushels. The agency had projected record output of 14.79 billion bushels in June.
“There is not going to be enough supply to go around,” said Richard Feltes, vice president of research at R.J. O’Brien & Associates in Chicago. “The U.S. drought is laying the groundwork for higher food inflation into 2013.” Soybeans for November delivery rose 1.7 percent to $16.48 a bushel by 7 a.m. on the CBOT. The oilseed jumped 36 percent this year as U.S. harvest concerns followed a drought that slashed the past season’s production in Brazil and Argentina.

VEGOILS-Palm oil bounces back on U.S. drought fears
SINGAPORE, July 19 (Reuters) - Malaysian crude palm oil futures rebounded from a 3-week low as the worst drought in the United States since 1956 threatened to squeeze global oilseed supplies further and offset slower exports and better output in Malaysia.
"The market is staged for a rebound as drought concerns are revived. Also, palm oil is now at a discount of over $260 to soyoil, and that will attract arbitrage activity to narrow the spread," said a dealer with a foreign commodities brokerage in Malaysia.  

Dry weather to keep Cargill palm output flat in 2012
JAKARTA, July 18 (Reuters) - Crude palm oil output at Cargill  will be unchanged at 300,000 tonnes this year, the U.S. agribusiness company said on Wednesday, as dry weather in Indonesia hurts production.
Crude palm oil shipments from the world's top producer have been hit by dry weather this year. For most of the archipelago, the rainy season is from October until April, although this can fluctuate.

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