Oil World sees slowdown from UkrAgroConsult-BlackSeaGrain

Soybean prices declined sharply Tuesday after the release of the January Crop report giving final production numbers for 2009. The USDA lowered harvested soybean acres by 212,000 but a sharp increase in yield more than offset the lower acres.
This report was bearish beans however the corn crop estimate was much more bearish than anyone expected dragging the whole grain and oilseed complex lower. Volume on Tuesday was heavy. Soybeans Traded 209,536, Meal traded 79,933 and Oil 73,737. Funds were net sellers of an estimated 8,000 Soybeans, 2,000 Oil and 2,500 Meal.

Early opening call slightly lower. Traders say they expect the overall bearish attitudes to remain in the Soy complex. Excellent weather in South America helping to produce excellent yields, higher than expected soybean production in yesterdays USDA report and expected slower sales to China due to the Lunar New year. The Annual unrest in Argentina is beginning as Farmers there are telling the government to guarantee higher wheat prices or risk a Farm strike. Taiwan is tendering for 60,000 mt. US or Brazil soybeans. Expect selling pressure to remain in the soy complex today. Resistance is seen at 984 for March Beans. Overnight Chinese Soybeans, Meal and oil closed lower.

Opening Call: Soybeans 3 to 5 lower, Meal .50 to $1.00 lower, Oil .10 to .15 lower

Top News-- Traders say Taiwan soybean crushing group is seeking 40-60,000 mt of Brazil or US soybeans in a Thursday, Jan 14 tender-- 30-40,000 mt of vegoil is being sought by Egypt's Meditrade, acc. to official with the group. They're looking to purchase 15-20,000 mt each of soyoil & sunseed oil in a tender that closes on Jan 19th-- Traders said on Tuesday, Toepfer sold 15,000 mt of soyoil to Egypt state run FIHC for a reported price of $900/mt-- Traders said on Tuesday, Wilmar sold 5,000 mt & Glencore sold 10,000 mt of sunseed oil to Egypt state run FIHC for a reported price of $920/mt-- At its annual meeting, American Farm Bureau expressed their opposition to the EPA's regulation of greenhouse gas emissions by vowing to support legislative efforts to limit the agency's powers on that topic-- Production of biodiesel by Indonesia in 2009, acc. to industry official was only 11% of capacity, saying only 344,000 mt were produced despite the country having 3.1 mln mt of capacity-- JANUARY SOYBEAN FUTURES 1/12/10 : 928 contracts-- JANUARY SOYBEAN OIL FUTURES 1/12/10 : 2,350 contracts-- JANUARY SOYBEAN MEAL FUTURES 1/12/10 : 0 contracts-- Morocco's state run grain corp says its upcoming total grain crop will likely be near 7 mln mt a drop of slightly more than 3 mln mt from the prior season-- Argentine economics minister says the country will reopen talks to their $20 bln debt restructuring. The country recently dismissed its top central banker over using its forex reserves to pay down its foreign held debt.-- Sources indicate there was a major Union Pacific train derailment last night, just outside of North Platte, NE; two of three lines are closed. The UP derailment has backed up trains all the way to Kansas - on the one line that is open, they are running at a 10 mph speed limit - west-bound trains are backed up to Lincoln, NE, and east-bound trains have been routed north through a coal route, acc. to sources-- Pending Tender: Jan 12 is bid deadline to sell 12,000 mt of refined palm olein to India's state trading arm, PEC. Delivery of product is expected in FH Feb, acc. to traders-- Pending Tender: 18,000 mt refined palm olein tender issued by India's gov't run MMTC, bids are due by Jan 13-- Liffe Feb rapeseed futures were off -1.75 euro at 279.25 euros/mt.-- Sep Dalian soybean futures on Wednesday fell 87 to 3,917 yuan/mt; Sep soymeal futures dropped 78 yuan to settle at 2,878 yuan/mt-- Active Sep soyoil futures on Dalian exchange Wednesday dropped 214 to 7,516 yuan/mt, while Sep palm oil futures also dropped sharply by 226 yuan to 6,820 yuan/mt-- March palm oil futures in Malaysia overnight declined 46 ringgitto 2,510 ringgit/mt, acc. to traders-- Globex Soybean Vol. 187,336; Pit Vol. 16,951; Open Interest Change: + 3,625-- Weather: 6-10 Day Forecast: Above Normal Temps. Above Normal Precip.-- Outside markets: Energy Complex -0.53 at $80.26; Gold & Silver: +7.7 at $1137.0 & +0.215 at $18.470; US $ -0.350 at $76.770

Cash Markets-- CIF Soybeans steady up 2. FH Jan. +65 to +??, Jan. +59 to +64, Feb. +53 to +60, Mar. +30 to +60, April +35 to +45, May +35 to +45, June +30 to +50, July +30 to +50, Oct. +47 to +50