20121219 1001 Soy Oil & Palm Oil Related News.

SGS CPO export down 3.3% to 734,571 tonnes for the period of 1~15 Dec 2012.

Soybean Futures Tumble as Exports Canceled; Corn Declines (Bloomberg)
Soybean futures tumbled the most in five weeks after China, the world’s largest consumer, canceled purchases from the U.S. Corn also declined.
Exporters said 420,000 metric tons of soybeans registered for delivery before Sept. 1 were canceled, including 300,000 tons to China, the U.S. Department of Agriculture reported today in a statement. The U.S. was the world’s largest grower and shipper last year.
“The Chinese cancellations are driving people out of the market and raising fears of a slowdown in U.S. exports,” Greg Grow, the director of agribusiness at Archer Financial Services Inc. in Chicago, said in a telephone interview.
Soybean futures for March delivery slid 1.9 percent to close at $14.605 a bushel at 2 p.m. on the Chicago Board of Trade, the biggest drop since Nov. 12. Yesterday, the price touched $15.0125, the highest since Nov. 8. Still, the most- active futures have gained 21 percent this year after a drought in the U.S. reduced output and prompted concern that global supplies will fall short of growing demand from China.
Prices also slipped on signs that wet weather will aid crops in South America. As much as 3 inches (7.6 centimeters) of rain will improve soil moisture for plant growth in Paraguay and most of Brazil during the next two weeks, while delaying planting in Argentina, the Commodity Weather Group LLC said in a report.
Corn futures for March delivery declined 0.6 percent to $7.20 a bushel in Chicago. The price has gained 11 percent in 2012 after drought cut U.S. production to a six-year low. The grain reached a record $8.49 on Aug. 10.
Corn is the biggest U.S. crop, valued at $76.5 billion in 2011, followed by soybeans at $35.8 billion, government figures show.

Soybean Complex Market Recap (CME)
January Soybeans finished down 30 1/4 at 1466, 35 3/4 off the high and 3 1/2 up from the low. March Soybeans closed down 27 3/4 at 1460 1/2. This was 3 1/2 up from the low and 33 1/4 off the high.
January Soymeal closed down 10.5 at 444.9. This was 1.4 up from the low and 12.5 off the high.
January Soybean Oil finished down 0.62 at 49.17, 0.9 off the high and 0.07 up from the low.
January soybeans traded sharply lower on the day after the USDA reported that China canceled 300,000 tonnes of US soybeans for 2012/13 and an unknown destination canceled 120,000 tonnes of US soybeans. At the same time, the USDA than reported that US exporters sold 110,000 tonnes of soybeans to an unknown destination for the same marketing year as the cancelations. The sale of soybeans offered very little support as the market found greater importance in the cancelations. Favorable weather conditions for Brazil continue add a negative bias towards price direction long term but an uptick in rainfall for Argentina over the next couple of weeks is raising concerns that additional planting delays may be seen. Most traders feel that any major disruptions to soybean planting or harvest in South America could be a positive for prices in 2013.

EDIBLE OIL: Malaysian palm oil futures edged lower in rangebound trading hurt by a slowdown in exports at a time when inventory levels remain at record highs. (Reuters)

VEGOILS-Palm dips in rangebound trade, weak exports hurt
Tue Dec 18, 2012 5:21am EST
* Prices may recover to 2,750 ringgit in 2013 -analysts
    * Palm oil may retrace to 2,285 ringgit -technicals
    * Malaysia sets Jan crude palm export tax at zero pct

 (Updates prices)
    By Chew Yee Kiat
    SINGAPORE, Dec 18 (Reuters) - Malaysian palm oil futures
edged lower in rangebound trading on Tuesday, hurt by a slowdown
in exports at a time when inventory levels remain at record
highs.  
    Cargo surveyors reported a slight drop in Malaysian palm oil
exports for Dec. 1-15 from a month ago, leaving traders to hope
for slowing production to bring down stock levels that hit 2.56
million tonnes in November.
    Palm oil futures have shed more than a quarter of their
value since the start of the year, set for their biggest annual
drop since 2008, although analysts say prices should recover in
2013 as stocks begin to ease.
    "For next year, we see a rebound in crude palm oil prices
back to 2,750 ringgit per tonne from the current weak position,
with signs only expected to start kicking in when inventories
are back to optimal levels," Malaysia's Public Investment Bank
said in a research note.
    "Although production levels are back to normal, demand from
the major consuming countries remains uncertain due to the
slowdown in economic activity and tightening measures on imports
of vegetable oils."
    China, the world's second largest edible oil buyer, will
impose stricter quality measures on edible oil imports from Jan.
1 onwards.
    The benchmark March contract on the Bursa Malaysia
Derivatives Exchange dropped 0.4 percent to close at 2,341
ringgit ($766) per tonne. Prices traded in a tight range between
2,332 and 2,355 ringgit.
    Total traded volumes stood at 30,911 lots of 25 tonnes each,
higher than the usual 25,000 lots.
    Technical analysis showed palm oil faces resistance at 2,381
ringgit per tonne, and may revisit 2,285 ringgit, a high touched
on Dec. 14, said Reuters market analyst Wang Tao.

    Traders are hoping for Malaysia's crude palm oil export tax,
set at zero percent for January, to spur shipments of the grade
and bring down record stocks.  
    In a bullish sign for palm oil, Brent crude rose above $108
a barrel on Tuesday as the outlook for demand improved on signs
of progress in U.S. talks to resolve a budget crisis that
threatens to dip the world's top oil consumer into recession
again.
    In other vegetable oil markets, U.S. soyoil for January
delivery was almost flat in late Asian trade. The most
active May 2013 soybean oil contract on the Dalian
Commodity Exchange edged up 0.1 percent.


India Bought 24,000 tonnes of RBD palmolein (The Star)
NEW DELHI: India's MMTC Ltd has bought 24,000 tonnes of RBD palmolein at US$809 per tonne, trade sources said on Tuesday, lower than the last known price paid by the state-run trading company.
India, the world's top vegetable oil importer, buys mainly palm oils from Malaysia and Indonesia, and a small quantity of soyoil from Brazil and Argentina.
The price includes cost, insurance and freight.
The cargoes will be delivered on the east coast by Jan. 11. The quantities have been purchased on behalf of the government of the southern state of Andhra Pradesh for subsidised sale.
MMTC's tender, issued on Nov. 21, sought 36,000 tonnes of refined, bleached and deodorised (RBD) palmolein.
Earlier this month, MMTC bought 22,500 tonnes of RBD palmolein at $821 per tonne on behalf of the southern state government.
Meanwhile Malaysian palm oil futures edged lower in rangebound trading on Tuesday, hurt by a slowdown in exports at a time when inventory levels remain at record highs.
Cargo surveyors reported a slight drop in Malaysian palm oil exports for Dec. 1-15 from a month ago, leaving traders to hope for slowing production to bring down stock levels that hit 2.56 million tonnes in November.
Palm oil futures have shed more than a quarter of their value since the start of the year, set for their biggest annual drop since 2008, although analysts say prices should recover in 2013 as stocks begin to ease.
"For next year, we see a rebound in crude palm oil prices back to 2,750 ringgit per tonne from the current weak position, with signs only expected to start kicking in when inventories are back to optimal levels," Malaysia's Public Investment Bank said in a research note.
"Although production levels are back to normal, demand from the major consuming countries remains uncertain due to the slowdown in economic activity and tightening measures on imports of vegetable oils."
China, the world's second largest edible oil buyer, will impose stricter quality measures on edible oil imports from Jan. 1 onwards.
The benchmark March contract on the Bursa Malaysia Derivatives Exchange dropped 0.4 percent to close at 2,341 ringgit ($766) per tonne. Prices traded in a tight range between 2,332 and 2,355 ringgit.
Total traded volumes stood at 30,911 lots of 25 tonnes each, higher than the usual 25,000 lots.
Technical analysis showed palm oil faces resistance at 2,381 ringgit per tonne, and may revisit 2,285 ringgit, a high touched on Dec. 14, said Reuters market analyst Wang Tao.
Traders are hoping for Malaysia's crude palm oil export tax, set at zero percent for January, to spur shipments of the grade and bring down record stocks.
In a bullish sign for palm oil, Brent crude rose above $108 a barrel on Tuesday as the outlook for demand improved on signs of progress in U.S. talks to resolve a budget crisis that threatens to dip the world's top oil consumer into recession again.
In other vegetable oil markets, U.S. soyoil for January delivery was almost flat in late Asian trade. The most active May 2013 soybean oil contract on the Dalian Commodity Exchange edged up 0.1 percent. - Reuters