In The News - 15/09/2005
The
European vegetable oil market [OILS/E] saw covering in palm and lauric oil on
Wednesday while little changed CBOT soyoil futures and a volatile dollar
dampened demand for liquid oils, market sources said.
"Chicago
soyoil started the day almost unchanged but picked up a little while the rest of
the soycomplex is down. The dollar was moving up and down today and that did not
help liquids. Palm and laurics saw some technical buying," one broker said.
At
1650 GMT CBOT soyoil futures <0#3BO:> were 0.01 to 0.19 cents per lb up
from Tuesday.
Palm
oil was offered flat to $2.50 up following steadier Malaysian palm oil futures
<0#KPO:> on the back of physical buying, but many operators were waiting
for fresh export data and holding back.
Sept+Oct
delivery palm olein traded at $402.50 a tonne fob Malaysia and Oct/Dec traded at
$400 a tonne fob.
Crude
palm oil changed hands at $427.50 and $430 a tonne cif Europe for April/June.
Lauric
oils recovered from earlier losses and were offered up to $15 a tonne up from
Tuesday after Oct/Nov coconut oil traded $5 up at $550 a tonne cif Rotterdam,
Nov/Dec traded $10 up at $555 and Dec/Jan fetched $560 and $555 a tonne cif.
Oct/Nov
palmkernel oil traded at $557.50 a tonne cif Rotterdam and Nov/Dec at $565 a
tonne.
Liquid
oils were flat to three euros up with the strong dollar and Chicago, but buyers
showed little serious interest and no trades were reported, dealers said.
Soybean
futures at the Chicago Board of Trade reached a near seven-month low on
Wednesday, under pressure from a smaller-than-expected monthly industry crush
number, traders said.
The
National Oilseeds Processors Association reported the August crush at 123.213
million bushels, which was below an average of analysts' estimate for 128.2
million bushels and NOPA's July crush of 133.767 million.
"The
crush number was disappointing. Yields are still coming in better than expected
-- ongoing harvest activity is expected to accelerate, there's not very much
friendly here today," said Dan Cekander, Fimat Futures analyst.
Early
harvest reports from central Illinois continued to be solid with soy yields in
the low 50s bushels/acre, traders and merchants said.
New-crop November <SX5> closed 5-3/4 cents lower at $5.80-1/4 per bushel -- dipping below $5.80 support to $5.76, but held above this week's low of
$5.75.
The deferreds were 3-3/4 to 5-3/4 cents down.
There
was lingering pressure from USDA's bigger U.S. soy crop estimate released two
days ago. Concerns about exports as Gulf export terminals work to get back to
normal after Hurricane Katrina remain bearish.
Grain
export terminals in Louisiana were stirring back to life this week, but activity
was far from normal. The Port of New Orleans, the major U.S. export port,
reopened as of early Wednesday.
The
Midwest harvest was picking up, increasing the supplies moving into local grain
elevators this week. That added pressure to cash basis levels and spilled over
to futures.
"Everybody
wants to be bearish ... waiting for harvest pressure," one CBOT floor
broker said.
Overnight
export business featured news that Taiwan was tendering for 15,000 tonnes of
U.S. soy on Friday.
The weather focus turned to the affects on harvesting. So far, the Midwest has seen mostly clear skies since harvest of early maturing soybeans began last
week.
Some rains fell in central Iowa into Missouri and portions of Illinois
overnight.
But
next week harvest could be delayed in the western Corn Belt with rains expected,
said Meteorlogix forecaster Joel Burgio.
The
September soy contract <SU5> expired quietly at $5.69-1/2, down 6-1/2
cents.
There
were 203 deliveries on the September soy contract on Wednesday. An R.J. O'Brien
customer was the key stopper of 134. Registrations with the CBOT were unchanged
at 1,020 lots.
Soymeal
followed soybeans lower and was pressured by futures deliveries on the September
contract amid recent weakness in U.S. soymeal markets.
October
<SMV5> settled $1.80 lower at $177, with the back months 80 cents to $1.90
weaker. September meal <SMU5> went off the board quietly, down $2 at
$175.50.
Deliveries
on the September meal contract totaled 200 lots amid scattered stopping.
Registrations with the CBOT were unchanged at 200 lots.
NOPA
reported U.S. August soymeal exports at 325,530 tons vs. 383,643 tons in July.
The association reduced its August U.S. soyoil stocks to 1.412 billion lbs, from
1.576 billion lbs in July. Before the open, NOPA's August soyoil stocks were
even lower at 1.153 billion lbs. That gave the market an early lift, then
traders sold it off when the association revised upward its August estimate.
Even so, the revised August number was still supportive and prices recovered
quickly amid strong commercial support.
October
soyoil <BOV5> settled 0.13 cent higher at 22.17 cents per lb. September
<BOU5> expired quietly, up 0.10 at 22.07 cents.
Deliveries
on September soyoil totaled 231 lots, with the ADM house account the main
stopper of 171. Registrations with the CBOT increased slightly to 3,852 from
3,828.
Malaysian
palm oil futures closed mixed overnight.
Funds
were net sellers of 4,000-5,000 soybeans, 1,000 soymeal and were net buyers of
soyoil, traders said.
Estimated
futures volume was light. In soybeans, an estimated 54,951 futures and 34,321
options traded. Estimated soymeal trade was 26,893 futures and 1,693 options.
Soyoil trade was seen at 25,382 futures and 1,489 options.
(Note:
all prices in Canadian dollars unless noted.)
Winnipeg
Commodity Exchange
canola futures ended slightly lower on Wednesday but spent most of the session
relatively firm because of continued
harvest delays on the Canadian Prairies, traders said.
"I think it has a lot to do with the kind of weather we're having up here," a canola trader said. "People are a little nervous."
Canola
settled 40 cents to $3.60 per tonne lower, with November
<RSX5> down 40 cents at $264.40 and January <RSF6> down 60 cents at
$272.90.
Canola volumes were estimated at 6,418 contracts, down from a total of 7,350 on Tuesday.
Japanese buying and scale-down exporter buying continued to provide support from the opening amid little farmer hedges, traders said.
Environment Canada said rainy, cold weather was expected to continue for most of the region through the weekend, with little sustained warm, dry weather needed to resume stalled harvest operations.
Commercials
actively traded spreads, traders said.
An estimated 848 November/January traded between $8.40 and $8.90, with 464 November/March between $15.10 and $16.40 and 724 November 2005/November 2006 between $33.00 and $37.00.
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