20120912 1016 Soy Oil & Palm Oil Related News.

Soybeans Extend Slide on Speculation Rain Aids Crop; Corn Falls(Bloomberg)
Soybean futures fell, capping the longest slump in 10 months, on speculation that rain in the past three weeks boosted U.S. crops as demand eases in China, the world’s biggest consumer. Corn declined to a six-week low. About 32 percent of U.S. soybeans were rated good or excellent as Sept. 9, up from 30 percent a week earlier, government data showed yesterday. In August, China’s imports posted the biggest drop since February 2011. Futures have surged 27 percent since the end of May as drought scorched U.S. crops. “The rains probably helped to marginally boost soybean yields,” Jack Scoville, a vice president at Price Futures Group in Chicago, said in a telephone interview. “There are some signs of slowing Chinese demand for U.S. soybeans because of the elevated price levels.”
Soybean futures for November delivery declined 1 percent to close at $17.015 a bushel at 2 p.m. on the Chicago Board of Trade, dropping for a fifth straight session, the longest slide since late October. Earlier, the price touched $16.9875, the lowest since Aug. 21. Macquarie Group Ltd. cut its 2012 economic growth estimate for China to 7.7 percent from 8.1 percent. Banks and brokerages including Barclays Plc and Nomura Holdings Inc. also have reduced their forecasts, partly because of a decline in industrial production. Corn futures for December delivery fell 0.7 percent to settle at $7.7775 a bushel. Earlier, the most-active contract touched $7.7525, the lowest since July 27. In the U.S., corn is the biggest crop, valued at $76.5 billion in 2011, followed by soybeans at $35.8 billion, government figures show.

Soybean Reserves Smallest in Four Decades After Drought(Bloomberg)
The smallest U.S. soybean harvest in nine years will leave inventories in the world’s largest exporting nation at the lowest in four decades. U.S. farmers will reap 13 percent less than a year earlier after the worst Midwest drought in 76 years, according to the average of 34 analyst estimates compiled by Bloomberg. Reserves will be the lowest since 1973 by March, estimates INTL FCStone Inc., which handled $75 billion of physical commodities in 2011. Futures will advance 18 percent to an all-time high of $20 a bushel in three months, Goldman Sachs Group Inc. predicts.
Crop prices surged to records this year as drought parched fields across the U.S., South America and Russia. The U.S. Department of Agriculture cut its forecasts the past two months and the Bloomberg survey indicates the agency will do so again tomorrow, leaving Brazil as the top soybean supplier for the first time. Feed costs are rising for meat producers including Tyson Foods Inc. (TSN), the largest in the U.S., and three United Nations agencies said Sept. 4 that swift action is needed to avert a food crisis. “The U.S. will simply run out of soybeans” for exports on March 1, said Doug Jackson, an FCStone vice president in West Des Moines, Iowa, who has been a grain-industry analyst since 1974. “The supply situation is unprecedented. The theoretical maximum South American shipping capacity may fall short, leaving world buyers wanting.”

Pro Farmer: After the Bell Soybean Recap(CME)
Pressure on soybeans built as the day progressed and futures ultimately finished with losses of 13 3/4 to 17 1/2 cents. Soymeal and soyoil also ended with losses for the day. Traders focused on removing risk ahead of what in the past has been "surprising" September USDA reports. Pre-report expectations are for USDA to trim its national average yield projection to 35.5 bu. per acre for a crop of 2.638 billion bushels.

Soybean Complex Market Recap(CME)
November Soybeans finished down 17 1/4 at 1701 1/2, 27 1/2 off the high and 2 3/4 up from the low. January Soybeans closed down 17 1/2 at 1700 3/4. This was 2 3/4 up from the low and 27 1/2 off the high. December Soymeal closed down 3.5 at 515.9. This was 0.9 up from the low and 6.4 off the high. December Soybean Oil finished down 0.68 at 55.88, 1.15 off the high and 0.08 up from the low. November soybeans traded sharply lower on the day and traded under $17.00 for the first time since August 21st. Thoughts that the USDA could revise soybean yields higher, along with profit taking, forced soybeans sharply lower for the second day in a row. The market is expecting an average US soybean yield near 35.7 bushels per acre and production near 2.66 billion bushels in tomorrow's USDA report. Better rainfall in August for the eastern Corn Belt has benefited soybean conditions however some of this is being offset by the a continued pattern of warm and dry conditions in the western Corn Belt. Some traders suggest soybeans look good from afar but low pod counts and plants that have aborted pods could mean this year's production is lower than the August USDA estimate of 2.69 billion bushels. Furthermore, open interest and long positions held by funds remains historically high which added to the downside momentum as traders headed to the sidelines. The US Dollar traded sharply lower today but offered minimal support to prices.

Forward sales of Brazil soy advance as farmers await rain (Reuters)
Forward sales of Brazilian soybeans advanced one percentage point last week while farmers waited for rain to be able to start planting what is expected to be a record crop, local analyst Celeres said on Monday.

EDIBLES: Malaysian crude palm oil futures slipped to their lowest in nearly a month, as traders turned cautious about high stocks and ahead of key reports by the U.S. Department of Agriculture due this week.(Reuters)