Wednesday, March 3, 2010

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BEET PULP

general sentiment uncertainty, not knowing where to go. But considering that the pig sector looks set to recover and we hope that the beef and milk will continue, we believe that consumption will improve for the second quarter. A lot remains accumulated stock of domestic pulp, but do not forget that the factories have closed or are missing bit to close. In addition, ports have changed the trend and have begun to raise prices to future (along with the rise of the dollar), which can be defined as an advance shift in domestic prices in the near future. We only have cereals with relatively low prices that make the barrier to a more rapid rise. In the ports
prices are between 123 and 130 € / t, and the 112 national pulp € / t and 117 € / t depending on origin. SOYBEAN MEAL



March continues the downward trend started and so far this year continues. The problem is how will the adjustment be between 290 € / tonne now to 240 € / tonne in April-May and when.
data to consider:

1 - Exports to USA this past week, 384,600 tons were shipped between 600/800.000TM expected.
2 - Oil World soybean production up to 52 Mill.TM Argentina and Brazil Mill.TM 65.5 (57.5 2009). There are also fears about plant diseases and damage crops that may occur due to wet weather.
3 - With the increase in supply from South America, it is expected a strong increase in the grinding of soybean from Brazil and Argentina, would come to 5.5 million tons (between March and August 2010) since last year. That with increasing milling in China, probably will increase the global volume processed, which would be approximately 109 million tons in March / August 2010 (99.9 Mill.Tm.mismo period last year).
4 - Oil World also points to an oversupply of soy flour with a potential downward effect on prices, especially from March onwards, which will drag rapeseed meal, fish and other oilseed meal for the second half.
5 - According to the Brazilian Celeres sales of the current crop are developing more slowly than last year. The producers have sold 31% of the new crop to February 26 (36% last year).
6 - In Brazil it has collected 27% of production to February 26 (9% more than last year at this time).
7 - Mutual funds 23 February, were net buyers of soybeans in Chicago.
8 - An important factor is the recovery of the dollar since December, which may alter the composition of the prices of soybean meal. It is estimated to reach a Euro / Dollar from 1.30 or so.

seems that the trend in the price of soybean meal is down (as opposed to the $) and that we understand that time will continue in March.

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