LIPSA MARKET FLASH 10/01/2012 11/01/2012

MPOB has released the following data about the palm oil in Malaysia for December:

                           NOV. 2011     DEC. 2011    DEC. 2010   

PRODUCTION         1.627.774     1.494.893       1.232.000

PRODUCTION         1.664.591     1.589.883       1.286.000

END STOCKS          2.070.008     2.039.224       1.615.000
Units in MT

Market was expecting that the end stocks would be lower  and that the production would also have been lower due to the strong rains in December.

According to surveyors at origin, palm oil exports from Malaysia between 1-10

th January 2012 have been 19% lower than the same period in December 2011.

SOYBEANS

Futures of soybean have started the year with a significant volatility. The quotations have oscillated between 53.1 y 51 cents per pound.

Market is under the influence of the weather in Argentina. In the last weeks the weather has been drier than what would be convenient.

On Thursday the USDA will release its report, where the current situation of soybeans will be reflected.

EURO continues to devaluate against the USD. Today is at  1.2772

Brent 112.99 $/barrel