In The News - 11/08/2005

Malaysian exports of oil palm products for Aug 1 to 10 could rise 18.5 percent to 391,214 tonnes from the 330,050 tonnes tracked for July 1 to 10, Societe Generale de Surveillance, a cargo surveyor, said on Wednesday.

The figure could be 23 percent higher if compared with SGS's estimate of 317,681 tonnes for Aug 1 to 10, 2004.

SGS said its latest estimate comprised 338,373 tonnes of palm oils and 52,841 tonnes of oleochemicals and lauric oils.

In the palm oil category, 34,075 tonnes were made up of RBD palm oil, 169,010 tonnes of RBD palm olein, 28,215 tonnes of RBD palm stearin and 29,597 tonnes of crude palm oil.

China was the biggest buyer of Malaysian oil palm products for Aug 1-10, taking 69,155 tonnes, followed by Egypt with 52,340 tonnes, and the United States with 32,524 tonnes.

European Union countries, another major destination, accounted for 83,523 tonnes of the export total.

Soybean futures at the Chicago Board of Trade closed mixed on Wednesday after a choppy, consolidation-type session as traders evened positions before Friday's USDA crop reports, traders said.

"Everyone is just biding time until Friday," said one CBOT floor trader.

August soy <SQ5> settled 1/2 cent higher at $6.43-1/2 per bushel, while new-crop November <SX5> was steady at $6.52-3/4 -- continuing to trade below its 100-day moving average of $6.60-1/2.

Funds were close to even in soybeans. The options pit featured Refco buying 3,000 November $8.40 soy calls, likely liquidation ahead of the report.

Traders were waiting to see how much the government will trim its 2005 U.S. soybean crop estimate after this summer's drought in the eastern Midwest in its August crop report released on Friday.

"The issue is how much does USDA try to reflect the decline in crop conditions now versus waiting for the next two weeks to see if we get any kind of rains," said Randy Mittelstaedt, analyst with R.J. O'Brien, a trade house in Chicago.

Rain during August is critical to yields as the crop sets and fills pods this month.

Analysts surveyed by Reuters estimated, on average, a U.S. 2005 soy crop of 2.804 billion bushels, down from USDA's July estimate of 2.89 billion and below last year's record crop of 3.141 billion.

Soybeans opened lower amid forecasts for rains and cooler temperatures in the very dry areas of Missouri, southeast Iowa and Illinois, traders said. Some updated midday forecasts were also wetter.

But market recovered some during the midsession, rebounding from Tuesday's big sell-off when commodity funds liquidated long positions.

Deliveries on the August soybean contract totaled 74 lots. The Bunge house account delivered all of the soy and there was scattered stopping.

Registrations with the CBOT dropped to 1,124 lots from the previous 1,477.

Exports were quiet overnight.

Midwest basis bids for soy were mixed early Wednesday and country sales were mostly quiet as farmers awaited higher prices.

The soy-products markets followed the up-and-down moves in soybeans. August soymeal <SMQ5> closed 60 cents up at $208 per ton and August soyoil <BOQ5> was down 0.08 cent per lb at 22.72 cents.

Softer U.S. cash soymeal markets amid weak demand added pressure. But there were no soymeal deliveries on the August contract as commercials kept a tight hand on supplies. Soymeal registrations with the CBOT remained nil.

Deliveries on the August soyoil contract totaled 169 lots with a Prudential customer issuing 100. The key stopper was an LBS customer taking 157 lots.

Soyoil registrations with the CBOT were unchanged at 2,934 lots.

Malaysian palm oil futures closed firm overnight. Traders in Kuala Lumpur said palm gained after a pickup in exports drove players to continue with short-covering activity from a day earlier.

Commodity funds were even to light net buyers in soymeal but sold about 2,000 soyoil contracts, traders said.

Volume was light to moderate across the soy complex, but soy options volume was heavy. Estimated soybean trade was 51,816 futures and 42,729 options. Soymeal volume was seen at 26,356 futures and 1,201 options. Soyoil trade was put at 25,588 futures and 1,906 options.

(Note: all prices in Canadian dollars unless noted.)

Winnipeg Commodity Exchange canola futures ended lower on Wednesday amid hedge pressure as farmers sold old-crop stocks ahead of the harvest.

November canola <RSX5> settled 70 cents per tonne lower at $278.80. January <RSF6> was down 80 cents at $291.90.

"There was some hedge pressure," a trader said. "Farmers were dumping their old crop because they need to make storage space before the harvest," he added.

Traders said commercials were active buyers early, setting off talk of fresh export sales, possibly to China.

In spread trading, November/January was traded at $7.70.

Traders said volume was light ahead of Friday's corn and soybean crop report from the U.S. Agriculture Department. 

Chicago Board of Trade soybeans ended the day mixed, with players positioning themselves ahead of the USDA report.

October barley <ABV5> settled 20 cents higher at $119.20 per tonne, with December <ABZ5> down 30 cents at $121.70.

October feed wheat <WWV5> ended 10 cents higher at $102.80.

($1=$1.21 Canadian)

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