In The News - 18/07/2005
Malaysian
exports of oil palm products for July 1 to 15 could fall 27 percent to 488,066
tonnes from the 669,259 tonnes tracked for June 1 to 15, Societe Generale de
Surveillance, a cargo surveyor, said on Friday.
Year-on-year,
the figure should be down 6.4 percent from SGS's estimate of 521,655 tonnes for
July 1 to 15, 2004.
SGS
said its latest estimate comprised 433,123 tonnes of palm oils and 54,943 tonnes
of oleochemicals and lauric oils.
In
the palm oil category, 46,012 tonnes were made up of RBD palm oil, 244,647
tonnes of RBD palm olein, 54,609 tonnes of RBD palm stearin and 23,350 tonnes of
crude palm oil.
China
was the biggest buyer of Malaysian oil palm products for July 1-15, taking
114,786 tonnes, followed by the United States with 42,901 tonnes and Japan with
36,959 tonnes.
European
Union countries, another major destination, accounted for 84,295 tonnes of the
export total.
The
Chicago Board of Trade soybean futures market closed mixed on Friday, coming off
its highs late as traders took profits after this week's run-up tied to U.S.
crop jitters, traders said.
New-crop
November <SX5> climbed 43-1/2 cents in the past week. On Friday it closed
1/2 cent higher at $7.31-1/2 per bushel on prospects that the U.S. soybean crop
was shrinking due to heat and dryness in the Midwest crop belt.
There
was also a shift in traders' opinions that there was still time to save the
soybean crop. August is the critical time for soybean yields when the crop sets
and fills pods. However, concerns continue about corn as yields are determined
during July pollination.
"The
perception is that you can save the (soy) crop in August. That's not the case
with corn -- we're making yields this month," said Dale Gustafson, analyst
with Citigroup.
"With
maybe some promise of rain out there at some point there's not quite the
willingness to be as aggressive on that market (soybeans)," Gustafson said.
A
drier and hotter weather pattern was settling into the U.S. western Midwest,
said Meteorlogix weather service early Friday. Central and northern Illinois
also will remain mostly hot and dry but there is a better chance for cooler
temperatures and some rains in the rest of the eastern Midwest.
Midwest
afternoon radar maps showed scattered rains moving through parts of eastern
Illinois and western Indiana.
The
export market remains quiet as importers turn to South America for cheaper
supplies. Also bearish were reminders that poor crushing margins in China were
slowing demand for soybeans. That, along with intense competition from cheaper
palm oil, prompted many Chinese soy crushers to shut down. This could limit
import demand later this summer, traders in Beijing said on Friday.
Midwest
cash basis bids for soybeans were steady to weak, with values softer in the
western belt where processors were planning to take downtime.
There
were 271 deliveries on Friday against the expired July contract. They were met
by commercial stopping, with the house account of Term Commodities taking 105
lots.
Soybean
registrations with the CBOT dropped to 1,238 lots late Thursday from the
previous 1,240.
The
soymeal market was strong. Technical buying by commodity funds was supportive,
with soymeal gaining on both soybeans and soyoil.
August
meal <SMQ5> closed $3.40 higher at $226.70 per ton, with deferreds $1 to
$2.80 higher.
CBOT
soyoil futures were underpinned early by the rise in soybeans, but ended
range-bound and mixed. August soyoil <BOQ5> was down 0.02 at 25.48 cents
per lb, with month through May 2006 up 0.03 cent to down 0.05 cent.
The
National Oilseed Processors Association said on Friday it revised its monthly
U.S. crush data for January through April 2005. The revised numbers show larger
U.S. soymeal exports than previously reported along with rising soyoil stocks.
Malaysian
palm oil futures closed weak overnight on data showing weak palm oil exports for
the July 1-15 period.
There
were no soymeal or soyoil deliveries on Friday against the expired July
contracts.
Soymeal
registrations with the CBOT dropped to 52 lots from the previous 92 late
Thursday.
Soyoil
registrations with the CBOT were unchanged at 1,092 lots.
Commodity
funds were net buyers of roughly 500 to 1,000 lots, while commercials were net
sellers.
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