Soybean Complex Market Recap (CME)
January Soybeans finished up 24 1/2 at 1449 1/4, 1 3/4 off the high and 26 1/4 up from the low. March Soybeans closed up 25 1/4 at 1437 1/2. This was 25 3/4 up from the low and 1 1/2 off the high. December Soymeal closed up 7.3 at 439.0. This was 7.7 up from the low and 0.9 off the high. December Soybean Oil finished up 0.85 at 50.12, 0.04 off the high and 0.99 up from the low.
January soybeans saw double digit gains on the day and support was linked to concern over the South American weather forecast and on solid demand for soybeans, meal, and oil. Soybean oil has been the leader for the complex recently and yesterday's sale of 20,000 tonnes brought the sales total for the last two weeks over 200,000 tonnes. Some analysts even suggest that total commitments now exceed the November USDA export estimate of 1.2 billion pounds. Traders noted strength in soybean calendar spreads and a firm tone to the basis in the Gulf of Mexico which added support to the trade. The overall weather outlook for South America remains mostly favorable. Central and northern Brazil continues to see steady precipitation which has improved conditions while Southern Brazil is trending drier. Heavier and more consistent rainfall patterns will be needed to alleviate soil moisture deficits. Argentina will see another shot of precipitation at the end of this week followed by a drier weather pattern. Most analysts are neutral on the Brazilian soybean crop with most estimates falling near the current USDA estimate of 81 million tonnes.
EDIBLE OIL: Malaysian palm oil futures edged down as traders booked profits from a near one-week high after Greece's international lenders agreed on a financial aid deal that boosted market optimism. (Reuters)
BRUSSELS | Tue Nov 27, 2012 3:10pm EST
(Reuters) - The European Commission has approved a scheme that would certify as sustainable transport fuel made from palm oil, condemned by environmental groups as one of the most damaging sources of biodiesel.
The Commission made public on Tuesday a decision taken last week to endorse the Roundtable on Sustainable Palm Oil scheme, which means the palm oil producers it licenses can qualify for subsidies.
"Palm oil is driving deforestation, wildlife loss, community conflicts, and accelerating climate change. Instead of greenwashing palm oil, the EU should outright ban its use as a biofuel," said Robbie Blake, biofuels campaigner at Friends of the Earth Europe.
Concern that some biofuels create more problems than they solve led to a major policy shift in September when the EU executive announced a proposal to limit how much biodiesel and bioethanol could be made from food crops.
Last month, it announced new rules to encourage a shift away from first-generation biofuels, blamed for stoking food price inflation, forcing forest clearance and draining of peat land. The aim is to move towards a second generation of fuels made from waste or algae, for instance.
The Commission's own research has shown palm oil has the highest emissions of any biofuel when so-called ILUC factors - the indirect land use change caused by using it for fuel - are considered.
"Emissions from peat conversion have a larger impact on the overall emissions attributed to oil crops, particularly for palm oil, than for bioethanol crops," a Commission document released in October said.
The roundtable is an association of hundreds of palm oil growers, processors, traders and distributors, as well as some non-governmental organizations working in palm-oil producing nations, such as Indonesia and Malaysia.
Commission spokeswoman Marlene Holzner said the Roundtable on Sustainable Palm Oil scheme had been judged "suitable."
She added that the EU's Renewable Energy Directive already prohibits the destruction of forests to grow palm oil or other biofuel crops.
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