20121214 0941 Soy Oil & Palm Oil Related News.

Soybean Complex Market Recap (CME)
January Soybeans finished up 3 at 1476 1/2, 13 1/2 off the high and 11 1/2 up from the low. March Soybeans closed up 2 at 1472 1/2. This was 10 1/4 up from the low and 12 3/4 off the high.
January Soymeal closed up 3.3 at 455.3. This was 6.3 up from the low and 2.9 off the high.
January Soybean Oil finished down 0.54 at 49, 0.91 off the high and 0.1 up from the low.
January soybeans ended the day with modest gains on the heels of another impressive display of export demand. Net weekly export sales came in at 1,319,400 tonnes for the current marketing year which was the second straight reporting week of over 1 million tonnes. This was well above market expectations and outdid last week's sales total by 176,700 tonnes. As of December 6th, cumulative sales stand at 81% of the USDA forecast for the current marketing year vs. a 5 year average of 65%. Sales of 179,000 tonnes are needed each week to reach the USDA forecast. Net meal sales came in at 271,900 tonnes for the current marketing which fell in line with market estimates. Cumulative meal sales stand at 71.5% of the USDA forecast for the current marketing year vs. a 5 year average of 45%. Sales of 50,000 tonnes are needed each week to reach the USDA forecast. Net oil sales came in at 30,500 tonnes and cumulative oil sales stand at 76% of the USDA forecast vs. a 5 year average of 37%. Sales of 5,000 tonnes are needed each week to reach the USDA forecast. Exports and crush demand continue to add a bullish tilt to the market but the favorable weather in Brazil has limited the upside momentum.

EDIBLE OIL: Malaysian palm oil futures fell to their lowest in more than three years, as record stocks and concerns that U.S. fiscal woes might drag on global growth spooked investors. (Reuters)

VEGOILS-Palm oil ends off 3-year low on stocks, U.S. fiscal woes
Thu Dec 13, 2012 5:12am EST
* Investors cautious on record stocks and U.S. fiscal woes
    * Prices hit 2,217 ringgit, lowest since Nov 2009
    * Traders looking out for Malaysia's new crude palm oil tax
for Jan

 (Updates prices, adds detail)
    By Chew Yee Kiat
    SINGAPORE, Dec 13 (Reuters) - Malaysian palm oil futures
fell on Thursday to their lowest in more than three years, as
record stocks and concerns that U.S. fiscal woes might drag on
global growth spooked investors.
    Despite announcements of more monetary stimulus by the U.S.
Federal Reserve, traders remained cautious as sharp differences
on the 2013 budget persisted between Congressional Republicans
and the White House, and negotiators warned the showdown could
drag on past Christmas.
    Record high stocks in Malaysia, the world's No.2 palm
producer, also drove palm oil futures to their third straight
daily loss.
    "The market looks exhausted at current levels, and some
correction is anticipated. But any bounce will be limited with
supply seen at record levels," a trader with a local commodities
brokerage in Malaysia said.      
    At the close, the benchmark February contract on
the Bursa Malaysia Derivatives Exchange lost 0.6 percent to
settle at 2,227 ringgit ($730) per tonne, slightly above its
intraday low of 2,217 ringgit, a level unseen since November
2009.
    Total traded volumes surged to 34,576 lots of 25 tonnes each
after the midday break, compared to the usual 25,000 lots.
    Traders will be counting on Malaysian exporters to use their
tax-free export quota ahead of its year-end expiration and
looking to stronger Chinese demand to bolster export figures for
the first half of December.
    India's monthly imports of cooking oil fell by a third in
November, a trade body said, largely because of a drop in
purchases of palm oil, as cold weather makes the commodity
unusable and volatile prices deterred buyers.  
    Malaysia's new crude palm oil export tax for January is also
in focus as analysts said the tax, likely to be set at zero,
could boost exports of the crude grade and ease record stock
levels.  
    In a bearish sign for palm oil,  Brent crude slipped toward
$109 a barrel on rising U.S. oil stockpiles, while fears the
world's largest economy might miss a deadline for next year's
budget and risk a recession also kept bulls in check.
    In other vegetable oil markets, U.S. soyoil for January
delivery lost 0.1 percent in late Asian trade. The most
active May 2013 soybean oil contract on the Dalian
Commodity Exchange closed 0.6 percent lower.


Palm Oil Falls for Third Day to Three-Year Low as Exports Drop (Bloomberg)
Palm oil slumped to a three-year low on speculation that shipments from Malaysia, the world’s second- largest producer, may decline for a second month.
The contract for February delivery fell 0.5 percent to 2,230 ringgit ($730) a metric ton on the Malaysia Derivatives Exchange, the lowest price at close for the most-active contract since November 2009. Futures are set for a 30 percent drop this year, the worst annual loss since the financial crisis in 2008.
Tariff on crude palm oil exports from Malaysia may be zero next month under a new tax structure, Maybank Investment Bank Bhd. said Dec. 11. The average free-on-board price between Nov. 10 and Dec. 9 that will be taken to set the January levy is estimated to be below the minimum threshold of 2,250 ringgit for the tax to apply, analysts Ong Chee Ting and Chai Li Shin said.
“If the tax next month is going to be zero, some people may take the opportunity to export next month,” said Ivy Ng, an analyst at CIMB Group Holdings Bhd. “Most people will just buy hand-to-mouth. I would expect exports to be better in January.”
Exports from Malaysia fell 2.8 percent to 504,032 tons in the first 10 days of December from 518,688 tons in the same period a month earlier, surveyor Intertek said Dec. 10. Stockpiles climbed 2.3 percent to an all-time high of 2.56 million tons in November from a month earlier, the Malaysian Palm Oil Board said Dec. 10.
“The stocks are still high and they have to keep prices low to get rid of the stocks,” said Ng.
Soybean oil for delivery in January was little changed at 49.51 cents a pound on the Chicago Board of Trade. Soybeans for March lost 0.2 percent to $14.6825 a bushel.
Palm oil for May delivery gained 0.3 percent to close at 6,698 yuan ($1,070) a ton on the Dalian Commodity Exchange. Soybean oil for May was little changed at 8,610 yuan a ton.


Palm Oil Slumps to Three-Year Low as Stockpiles Reach Record (Bloomberg)
Palm, the world’s most consumed cooking oil, tumbled to the lowest level in more than three years amid record inventories in Malaysia and on signs that global supplies will be more than enough to meet demand.
Futures fell as much as 1.1 percent to 2,217 ringgit ($727) a metric ton on the Malaysia Derivatives Exchange, the lowest price since November 2009, and settled at 2,230 ringgit in Kuala Lumpur. Prices are heading for a 30 percent decline this year, the worst annual loss since the 2008 financial crisis.
Palm, used in everything from Nestle SA (NESN)’s Maggi instant noodles to Unilever’s soap bars, has plunged as output in Indonesia and Malaysia, the biggest producers, outpaced demand from China and India. Prices have declined even as soybeans jumped 22 percent this year and wheat advanced 25 percent. Futures will probably drop into a bear market next year, said Dorab Mistry, director at Godrej International Ltd.
“The stocks are still high and they have to keep prices low to get rid of them,” said Ivy Ng, an analyst at CIMB Group Holdings Bhd. in Kuala Lumpur. “Most people will just buy hand- to-mouth. I would expect exports to be better in January.”
Global inventories of soybean oil, an alternative, will reach 3 million tons in the year that began Oct. 1, up from 2.9 million tons forecast a month ago, the U.S. Department of Agriculture said Dec. 11. Palm oil stockpiles in Malaysia reached an all-time high of 2.56 million tons in November, according to the nation’s palm oil board.

Malaysian Tax
The S&P GSCI Agriculture Index of eight commodities has gained 6.9 percent this year, while soybean oil lost 5.4 percent. Futures in Malaysia will trade between 2,300 ringgit and 2,600 ringgit a ton between now and February, and drop below 2,200 ringgit in August or earlier to clear inventories, Godrej’s Mistry said Nov. 30.
Malaysian shipments may slow this month as exporters await a new tax structure from Jan. 1, CIMB’s Ng said. The new system will help create more demand, Bernard Dompok, Malaysia’s Plantation Industries and Commodities Minister, said yesterday.
Tax on crude palm oil exports may be zero next month, Maybank Investment Bank Bhd. said on Dec. 11. The average free- on-board price between Nov. 10 and Dec. 9 that will be taken to set the January levy is estimated to be below the minimum threshold of 2,250 ringgit for the tax to apply, analysts Ong Chee Ting and Chai Li Shin said in a report.