In The News - 27/09/2005

Malaysian palm oil futures rebounded on Monday, recouping Friday's losses as stronger export estimates for Sept. 1 to 25 spurred active buying.

The benchmark third-month December <KPOZ5> palm oil contract on Bursa Malaysia Derivatives settled 27 ringgit up at 1,455 ringgit ($386.04) a tonne.

Other futures contracts were up 21 to 26 ringgit <0#KPO:>. 

Overall market volume stood at 8,619 lots of 25 tonnes each, more than doubled Friday's 4,212 lots.

Societe Generale de Surveillance, a leading tracker of palm oil shipments, said on Monday that Malaysian exports of oil palm products for Sept. 1 to 25 are estimated to have risen 12.4 percent to 1,021,894 tonnes from the 908,956 tonnes tracked for Aug. 1 to 25.

September usually marks the start of one the busiest periods for Malaysian palm oil exports as Pakistan, the Middle East and India import more products to prepare for the Muslim Ramadan and Hindu Diwali festivals in October/November.

A respected industry analyst said at the weekend that Malaysian palm oil prices were expected to trade at around 1,400 to 1,600 ringgit per tonne until February.

"I feel compelled to raise my price range for CPO futures from my earlier prediction of 1,300 to 1,500 to a new higher range of 1,400 to 1,600," Dorab Mistry told an edible oils conference in Mumbai.

"As the period October to February advances, prices will creep towards the upper end of this range," he added.

($1=3.7690 ringgit)

Soybean futures at the Chicago Board of Trade slid on Monday on outlooks for more soybeans moving into marketing channels as harvest gains speed this week and weakness in soyoil, traders said.

"It was a function of harvest. The midday weather confirmed net drying up until the weekend," which should push harvest along, said Terry Reilly, an analyst with Citigroup.

November soy <SX5> closed 6-1/2 cents lower at $5.67-1/2 per bushel, with deferreds down 4 to 6-1/2 cents.

Heavy weekend rain over northern Iowa and southern Minnesota and across the eastern production belt was stalling harvest early this week, Meteorlogix weather service said Monday.

But conditions were expected to clear by midweek, especially in the western belt, giving fields a chance to dry so farmers could resume combining soybeans, it added.

USDA said late Monday that 19 percent of the U.S. soy harvest was complete as of Sunday, ahead of trade estimates for 13 percent.

The drop in soyoil futures also pressured soybeans. But soybean oil came off its lows late, when crude oil turned around and rallied on news that U.S. Gulf oil output remained shut after hurricanes Rita and Katrina.

CBOT soyoil prices have tracked the volatile moves of the energy markets over the past week amid increasing demand for biodiesel fuel, which is produced from soybean oil.

October soyoil <BOV5> closed 0.21 cent per lb. weaker at 22.67 cents, after sliding to 22.43 cents early.

Energy prices were lower most of Monday as Rita spared the Houston, Texas, area, causing less damage then expected to oil refineries.

Recent U.S. sales of soybeans to China, the top global soy buyer, underpinned prices.

Of the 9.4 million bushels of soybeans inspected for export last week, China took 6.4 million, USDA said on Monday. Traders estimated export inspections at 4 million to 9 million bushels.

Additionally, there was fresh floor talk that China may have bought another one or two cargoes of U.S. soybeans, traders said.

Midwest cash basis bids for soybeans early Monday were weak after movement last week and outlooks for more as harvest picks up, cash dealers said.

Soymeal followed the moves in soybeans. October soymeal <SMV5> closed $1.60 per ton lower at $169.70, with deferreds down $1.20 to $1.80.

India's soymeal exports were expected to pick up after a slow start, with countries like Japan showing keen interest in the meal because it is non-genetically modified, a leading exporter in Mumbai said on Monday.

Malaysian palm oil futures closed firm overnight on stronger export estimates for Sept. 1 to 25, traders said.

Friday's CFTC futures-only data showed that large speculators cut their net long positions in CBOT soybeans and soymeal but turned net long in CBOT soyoil during the week ended Sept. 20.

In futures/options combined, funds reduced their net shorts in soyoil.

Commodity funds on Monday net sold about 2,500 soybean contracts, 2,500 to 3,000 soyoil lots, and 1,000 soymeal lots. There was commercial pricing and bull spreading in soybeans, traders said.

Estimated volume was light. In soybeans, an estimated 46,272 futures and 24,309 options traded. Soymeal trade was pegged at 21,205 futures and 990 options. Soyoil volume was seen at 26,783 futures and 792 options.

(All prices in Canadian dollars unless noted)

Canola futures on the Winnipeg Commodity Exchange settled lower on Monday as farmer selling picked up amid good harvest weather and after allied U.S. soy markets slipped, traders said. 

Canola ended 10 cents to $3.20 per tonne lower, with November <RSX5> down $2.90 at $257.20 and January <RSF6> down $2.50 at $266.

"It's just a methodical downtrend here," a canola trader said.

Canola volumes were estimated at 5,229 contracts, down from a total of 5,934 on Friday.

Routine scale-down exporter buying provided some support, traders said. Crushers were also seen buying the January contract.

Traders were expecting more harvest pressure this week because of better weather forecasts for most of the Prairies.

Environment Canada said a weak disturbance could bring light rain to Alberta on Monday, with another weak system moving through that province on Friday.

A senior official at Saskatchewan Wheat Pool said most canola should grade No. 1, with oil content likely above average at 42 to 44 percent.

An estimated 1,426 November/January spread traded between $8.50 and $8.90.

In canola options, 45 January $280 calls traded at $9.50.

($1=$1.17 Canadian)

Back

For More Inquiries:
Our e-mail : [email protected]