India soybean up on U.S mkt, soyoil on palm

MUMBAI | Thu Jan 13, 2011 12:36pm IST

Jan 13 (Reuters) - Indian soybean futures rose on Thursday afternoon, buoyed by an overnight rally in the U.S market, while soyoil edged higher tracking Malaysian palm, analysts said.

Rapeseed futures erased early gains as expectations of a rise in output hit sentiment, they said.

"Higher production estimate is not allowing rapeseed to rise, but short-term outlook for soybean and soyoil is positive. Still there is scope for upside," said Ankita Parekh, analyst at Geojit Comtrade.

At 12:24 p.m., Malaysian palm oil futures KPOc3 were up 1.32 percent at 3,698 ringgits per tonne, while the U.S. soy futures Sc2 were down 0.04 percent at $14.14-½ per bushel, after rising 4.3 percent in the previous session.

The USDA, in its monthly report, reduced its estimate for last fall's U.S. corn and soybean harvests, trimmed its corn and soy output forecast for drought-hit Argentina, and cut its wheat production view for flood-hit Australia. [ID:nN12190436]

At 12:24 p.m., February soybean NSBG1 on India's National Commodity and Derivatives Exchange (NCDEX) was up 1.08 percent to 2,436 rupees per 100 kg, after rising to 2,462 rupees in morning trades.

The contract may test resistance at 2,474 rupees, Parekh said.

India's oilmeal export jumped 94 percent in December from a year earlier, its sixth straight monthly rise, on robust demand from traditional buyers in Japan, Vietnam and Indonesia, data from a leading trade body showed. [ID:nSGE70604W]

February soyoil NSOG1 was up 0.27 percent at 640.7 rupees per 10 kg, while January rapeseed NRSF1 dropped 0.42 percent to 545.5 rupees per 20 kg.

Rapeseed area in top producing Rajasthan state went up 24 percent to 2.75 million hectares, while the current weather conditions have boosted yield prospects for the country's main winter oilseed crop

Malaysia's 2011 palm oil output to cross 17.5 mln T

Fri Jan 7, 2011 6:49pm IST

* Output to jump as mature palm plantations start production

* Malaysia got no request from Thailand for palm imports-min (Adds quote, details)

By Ratnajyoti Dutta

NEW DELHI, Jan 7 (Reuters) - Palm oil output in Malaysia, the world's second-biggest producer, is likely to top 17.5 million tonnes this year as more mature plantations start production, the country's deputy minister of plantation said on Friday.

"This year, production could be more than (the) likely 17.5 million tonnes (produced) in 2010," Dato' G. Palanivel, who is on an official visit to New Delhi told a news conference.

Higher output in Malaysia may help lower benchmark prices in Kuala Lumpur, helping large importers such as India, which buys almost half of its annual demand of about 16.5 million tonnes.

Lower prices also augur well for large Asian economies that are battling high food inflation.

Palm and palm products constitute nearly 80 percent of India's annual imports and the country mainly buys RBD palmolein from Malaysia.

Palm oil prices in Kuala Lumpur rallied to a 33-month high earlier in the week as heavier-than-usual rains stalled harvesting in top producers Indonesia and Malaysia, while dry weather slowed soy planting in South America, raising concern over tight supplies.

On Friday, March 2011 crude palm oil contract KPOc3 on the Bursa Malaysia Derivatives fell as much as 2.7 percent on profit-booking to settle at 3,761 ringgit ($1,224.483) a tonne. [ID:nL3E7C70PR]

The Malaysian Palm Oil Board would release last year's final output figures on Jan. 10, said M. Nagarajan, an under secretary in the Malaysian government.

Palanivel said Malaysia had not received any request from Thailand for palm oil supplies. There were some market chatter about Thailand planning to import 30,000 tonnes of Malaysian palm oil as part of its efforts to stave off higher food inflatio

Malaysia 2011 Palm Oil Output Seen At 17.5 Mln-17.8 Mln Tons - Malaysia Official

Jan 7 2011 5:38PM

NEW DELHI (Dow Jones)--Malaysia expects its palm oil output in 2011 to rise to 17.5 million-17.8 million tons on higher yields, a senior Malaysian government official said Friday.

The country is estimated to have produced 17.0 million-17.5 million in 2010, Under Secretary M. Nagarajan told reporters.

The final production figure of 2010 is expected on Jan. 10, he added.

Last month, the government-linked Malaysian Palm Oil Board said it expected palm oil output for 2011 may rise only a tad from last year's 17.2 million tons as Malaysia plans to chop down more unproductive trees.

Malaysia aims to cut 365,000 hectares of oil palm trees older than 25 years in a bid to boost national average yields, which have remained stagnant at around 4.08 tons per hectare for the past 20 years, and has fallen behind major producer Indonesia, since 2007.