Soybean Complex Market Recap (CME)
January Soybeans finished up 1 3/4 at 1448, 12 off the high and 6 3/4 up from the low. March Soybeans closed up 6 at 1441. This was 9 1/4 up from the low and 9 1/4 off the high. December Soymeal closed up 2.8 at 442.7. This was 3.7 up from the low and 2.9 off the high. December Soybean Oil finished down 0.34 at 49.77, 0.69 off the high and 0.03 up from the low.
January soybeans ended the day near the unchanged. Early gains eroded near 11 am cst after outside markets lost momentum due to negative comments in regards to the Fiscal Cliff by a Republican leader. Early strength was linked speculation that China will be in the market for 3-4 million tonnes of soybeans in the coming weeks after canceling cargos earlier this month. Net weekly export sales for soybeans came in at 319,100 tonnes for the current marketing year and as of November 22nd, cumulative sales stand at 75% of the USDA forecast for the current marketing year vs. a 5 year average of 61%. Net meal sales came in at 365,100 tonnes for the current marketing year and cumulative meal sales stand at 64% of the USDA forecast vs. a 5 year average of 42%. Net oil sales came in at a whopping 121,500 tonnes for the current marketing year and 1,000 for the next marketing year for a total of 122,500. As of November 22nd, cumulative soybean oil sales stand at 105% of the USDA forecast vs. a 5 year average of 32%. At this point, sales exceed the current USDA export estimate for the current crop year.
EDIBLE OIL: Malaysian palm oil futures fell to a 2-week low extending losses for a third straight session as weak sentiment dominated the market with investors worrying about record high stocks. (Reuters)
Refinery growth to boost Indonesia's palm oil output next year
By Michael Taylor
NUSA DUA, Indonesia | Thu Nov 29, 2012 6:05am EST
Nov 29 (Reuters) - An expansion in the edible oil processing industry in top palm oil producer Indonesia is expected to boost its consumption to about 7.5 million tonnes next year, which may reduce the amount available for export, industry officials said on Thursday.
After years of increasing the acreage devoted to palm oil, Indonesia is now rapidly expanding its downstream and processing industries. Last year, it slashed export duties for refined oil in a bid to boost investment in the sector.
Palm oil consumption this year is expected to rise to 7 million tonnes from the 5 million-6 million tonnes used up in 2011, and is set to increase further in 2013, delegates at the 8th Annual Indonesian Palm Oil Conference told Reuters.
"The increase will mostly be in olein chemical and food," said Derom Bangun, chairman of the Indonesian Palm Oil Board.
An increase in domestic consumption will benefit palm oil producers who do not sell overseas such as BW Plantation .
Sebastian Sharp, BW Plantation's head of investor relations, expects Indonesia to soon overtake India as the world's biggest palm oil consumer. He also forecast the company's output to rise by up to 25 percent next year from 130,000 tonnes this year.
"Indonesia is the fastest growing consumer and overtook China last year," said Sharp. "It will eventually overtake India."
According to industry estimates, Indian palm oil consumption will be about 7.8 million tonnes in 2013, rising from 7.3 million tonnes this year.
EUROPEAN ASSAULT?
Palm oil is used mainly as an ingredient in food such as biscuits and ice cream, or as a biofuel.
Producers are seeking new ways to generate demand after benchmark prices fell by about a quarter this year, but their efforts to drum up sales to their traditional European customers may be hampered by renewed attacks by Western governments on the oil's green credentials.
Environmental groups have been critical of the expansion in the palm sector, which they blame for deforestation, speeding up climate change and killing wildlife.
The U.S. Environmental Protection Agency recently visited Indonesia to review the environmental aspects of its palm oil industry, while France has proposed an increase in duties on foods using palm oil, which has been dubbed the "Nutella tax".
Bangun of the Indonesian Palm Oil Board said attempts by European countries to curb the use of palm oil were simply protectionism masked as green and health concerns.
"In France's case, maybe they also need additional funds for their budget," he added.
It hasn't all been bad news from Europe for palm oil. This week, the European Commission said it had approved a scheme that would certify as sustainable transport fuel made from palm oil.
"It is one access to the European biodiesel (market)," said Bangun. "It will give more opportunity for producers to get into this industry, which is very important."
Malaysia will announce details of its proposed cut to crude palm oil export taxes by the end of December, a government official said. "We will make an announcement on the exact pricing in the last few days of December," said the official who declined to be named due to sensitivity of the issue. The tax, due to take effect on Jan. 1, is aimed at making crude exports more competitive in the face of a tax cut for refined grades by top producer Indonesia last year. The Malaysian government has proposed pegging the tax at between 4.5 and 8.5% depending on the market prices, a cut from the current 23%. (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. (Reuters)
An expansion in the edible oil processing industry in Indonesia is expected to boost its consumption to about 7.5m tonnes next year, which may reduce the amount available for export, industry officials said. Palm oil consumption this year is expected to rise to 7m tonnes from 5-6m tonnes used in 2011. (Reuters)
Indonesia is discussing changes to its export tax structure to counter competition from Malaysia which will cut tariffs from Jan. 1 to boost shipments and pare record inventories. “We want the taxes to be similar if not exactly the same as Malaysia,” Joko Supriyono, secretary-general of the Indonesian Palm Oil Association said. (Bloomberg)
No comments:
Post a Comment