Monday, 27 August 2012

FCPO related news
Malaysian crude palm oil futures rose to a 6-week high on Monday, as traders continued to bet on tight global edible oil supplies with no sign of the drought easing in the soy-producing U.S. Midwest. (Reuters)
Traders are taking profits off the table in the absence of fresh news to support higher prices. Meanwhile, Malaysia's Aug. 1-20 palm oil exports rose 3.9% from a month earlier to 798,431 metric tons, cargo surveyor SGS (Malaysia) Bhd. said Monday.
The assumption that rains associated with Tropical Storm Isaac will benefit late-developing soybean crops in the Mississippi Delta  region and parts of the Midwest later in the week attracted light selling as well, but traders remain cautious as analysts generally think it is too late for the rains to substantially boost crop yields.
Brent crude oil futures fell toward $112 a barrel on Monday, reversing early gains as Tropical Storm Isaac shuttered refineries on the U.S. Gulf Coast, cutting demand for crude.

SAO PAULO, Aug 24 (Reuters) - Brazil's grain industry association Abiove expects the world's No. 2 soy producer to turn out a record new crop of 81.3 million tonnes, possibly surpassing output from the drought-stricken United States for the first time, Abiove said on Friday. "Brazil will be the largest producer in the world if the United States doesn't recover from the averse climate," Abiove said in a report.
Aug. 17 (Bloomberg) -- Palm oil is set to drop 8.5 percent to the lowest level in 22 months as a slowdown in China and India, the top users, curbs demand and rising Malaysian output boosts inventories, said an analyst at Frost & Sullivan. Prices may decline to 2,700 ringgit ($862) a metric ton in the next three weeks unless crude oil rises, which would make palm more attractive as a biofuel, said Global Vice President of Consulting Chris de Lavigne, who correctly forecast in December that futures would reach 3,500 ringgit in the first half before declining below 3,000 ringgit. Prices were last less than 2,700 ringgit in October 2010.
The outlook is similar to a forecast made in June by Dorab Mistry, director of Godrej International Ltd.
“I don’t really see any catalysts for palm prices to go much above 3,000 ringgit,” de Lavigne said in a phone interview from Singapore on Aug. 14. “There’s a lot of supply. Until we see a more buoyant global economy and higher crude oil prices, I don’t foresee CPO making a bounce back,” he said, referring to
crude palm oil by its initials.

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