20130104 0932 Soy Oil & Palm Oil Related News.

Soybeans Drop to 6-Week Low as China Cancels Import; Corn Steady (Bloomberg)
Soybean futures tumbled to a six-week low after China, the world’s biggest importer, canceled its third U.S. purchase in two weeks, while prospects improved for Brazil’s crop. Corn was little changed.
China canceled 315,000 million metric tons of previous soybean purchases for delivery before Aug. 31, bringing the total to 1.155 million since Dec. 18, the U.S. Department of Agriculture said in a report today. Yesterday, the USDA’s Foreign Agriculture Service said Brazil’s harvest this year will jump 25 percent to a record 83 million tons, boosting exports 21 percent and overtaking the U.S. as the top shipper.
“The mindset is for bigger crops in Brazil to reduce Chinese demand for U.S. soybeans,” Jerry Gidel, the chief feed- grain analyst for Rice Dairy LLC in Chicago, said in a telephone interview. “The market is adjusting to slowing demand.”
Soybean futures for March delivery dropped 0.5 percent to $13.8475 a bushel at 10:12 a.m. on the Chicago Board of Trade, after touching $13.725, the lowest since Nov. 16. Soybeans rose 17 percent in 2012, after drought cut production to a four-year low in the U.S.
Corn futures for March delivery rose 0.1 percent to $6.9175 bushel in Chicago, after touching $6.85, the lowest for a most- active contract since July 3. Last year, the price gained 8 percent, the fourth straight increase, after a drought cut U.S. production.
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 2 1/2 at 1403, 4 1/2 off the high and 16 3/4 up from the low. March Soybeans closed down 4 3/4 at 1387 1/2. This was 15 up from the low and 9 1/4 off the high.
January Soymeal closed down 1.5 at 405.6. This was 5.9 up from the low and 2.3 off the high.
January Soybean Oil finished down 0.31 at 50.21, 0.38 off the high and 0.11 up from the low.
March soybeans are trading 5 cents lower into the closing bell but settled well off the session lows of the day. The sentiment favored the bear camp for most of the day after wires reported that China canceled another 315,000 tonnes of US soybean purchases for the 2012/13 marketing year this morning. Harvest has begun in Brazil and yields so far have been favorable. Some are now even suggesting that demand is slowly being shifted to South America due to cheaper prices and expectations that new crop soybeans will be available for export very soon. A dry period will extend into the end of this week for Argentina but rainfall is set to return early next week. Brazil conditions remain in good shape with the exception of northeastern Brazil but weather maps suggest a slightly better chance of rainfall for the region in the 6-10 day outlook. Early harvest has begun in Mato Grosso and conditions are exceptional at the moment. Additional sell pressure was due to the negative technical outlook for soybeans at the moment.

EDIBLE OIL: Malaysian palm oil futures edged lower after prices climbed to a two-month high the previous day, although hopes of a new export tax structure boosting demand had curbed losses. (Reuters)