In The News - 08/07/2005
Malaysian crude palm oil futures dropped on Thursday on losses in rival U.S. soyoil and on selling ahead of official crop and export data next week.
The government-run Malaysian Palm Oil Board releases June production, export and stock numbers on Monday.
Two independent surveyors of Malaysian oil palm cargoes, Intertek Testing Services and Societe Generale de Surveillance, will release export estimates for July 1 to 10 on the same day.
A Reuters survey released on Thursday showed Malaysian palm oil output could fall 5 percent in June over May, reversing earlier expectations of a rise.
At the close, the benchmark third-month crude palm oil contract on Bursa Malaysia, September <KPOU5>, was down 18 ringgit at 1,411 ringgit a tonne. Its low was 1,408.
Overall market volume was 4,712 lots of 25 tonnes each.
Soybean
futures at the Chicago Board of Trade closed lower on Thursday with the market
pressed by potential rainfall early next week in the dry eastern U.S. Midwest,
traders said.
CBOT
soy closed unchanged to 4-1/4 cents per bushel lower. July <SN5> was down
4-1/4 at $6.92 per bushel. New-crop November <SX5> was down 2 at
$7.07-1/2.
Volume
was estimated by the exchange at 84,676 futures and 28,976 options.
The
market was volatile and soy closed above the day's lows, with prices shifting on
both sides of Wednesday's settlement levels because of the uncertainty about
weather forecasts.
"At
this point the market has come to the realization that the overall weather
pattern has not made a significant change so there's more logic in the market
right now than you might think sometimes," said Jerry Gidel, analyst for
North America Risk Management Inc.
Some
selling also may have evolved after bomb blasts in London's transport system
unnerved the financial and other markets, the traders said.
However,
CBOT soy traders said most of the pressure on soy stemmed from the possibility
of showers early next week in the dry eastern Midwest crop region, especially in
top producer Illinois.
There
is the potential for rains early next week in the dry areas of the eastern
Midwest after Hurricane Dennis reaches landfall, a private forecaster said on
Thursday.
"There
is the possibility of showers in the eastern Midwest late Monday or early
Tuesday but there is a lot of uncertainty in this forecast," said
Meteorlogix forecaster Joel Burgio.
Burgio
said it would remain dry in the eastern crop region through the weekend and
after early next week another dry spell was likely.
Recent
volatility in the soy complex caused the CBOT to raise the initial margin to
trade soy from $1,823 to $2,295 effective with the close of business on
Thursday.
Exports
were quiet overnight and deliveries on the July contract were heavy at 898 lots
and there was scattered stopping of the soy. Registrations with the CBOT
increased to 1,634 lots from the previous 1,202.
There
was floor talk on Thursday that China may have bought a cargo of soy from South
America.
Cash
basis bids for soy in the Midwest on Thursday were firm amid an almost complete
halt in farmer selling, cash dealers said.
Soymeal
closed 40 cents to $4.10 per ton lower. July <SMN5> was down $1.60 at
$214.60 per ton.
The
CBOT raised the initial margin to trade soymeal from $1,114 to $1,485 effective
with the close of business on Thursday.
There
were no deliveries on the July contract on Thursday and registrations with the
CBOT unchanged at 170 lots.
The
export hopper included news from traders in New Delhi that Vietnam and Thailand
have bought 18,000 tonnes of soymeal from India.
Soyoil
futures closed 0.10 to 0.65 cent per lb higher on fund buying. July <BON5>
was up 0.15 at 25.15 cents per lb.
The
CBOT raised the initial margin to trade soyoil from $979 to $1,080 effective
with the close of business on July 7.
There
were no deliveries on the July contract on Thursday and registrations with the
CBOT unchanged at 1,092 lots.
Malaysian
palm oil futures closed lower overnight. Traders in Kuala Lumpur said palm
dropped amid losses in rival U.S. soyoil and on selling ahead of official crop
and export data next week.
Soymeal
volume was estimated at 27,144 futures and 1,570 options. Soyoil volume was
estimated at 22,730 futures and 2,606 options.
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