Monday, February 21, 2011

20110221 0910 Soy Oil & Palm Oil Related News.

ITS CPO export down 3.2% to 825,180 tonnes for the period of 1~20 Feb 2011.
SGS CPO export up 1.5% to 811,813 tonnes for the period of 1~20 Feb 2011.

CBOT soybean products fell in tandem with soybeans, as a hike in China's bank reserve requirements raised questions about demand. Export demand for soy products has been weakening amid higher prices, an analyst added. March CBOT soyoil fell 3%, or 1.76c, to 56.49 cents per pound. March soymeal slipped 2.9% to $362 per short ton. (Source: CME)

China Mulls Ways To Boost Commodity Imports (Source: CME)
China is considering various ways to increase imports of commodities, including food-related products, a Ministry of Commerce official said. The official's comments reflect a shift seen recently in policy focus towards restocking of state reserves and containment of food-price inflation, rather than the usual focus on the need for self-sufficiency in grains and other staples. Also, the China National Grain & Oil Information Center, a key state-backed grain research agency, acknowledged market speculation that the government is also considering a reduction of import duties on soybean and soyoil. "China is definitely trying to see if we can adopt appropriate policies to enlarge our imports," said the ministry official, who declined to be identified.
Minister for Commerce Chen Deming, in an interview with local magazine Caijing published late last month, didn't mention import tax cuts directly, but left the door open for such actions to "widen the leeway" for an expansion of imports of agricultural commodities and the replenishing of reserve levels of key farm products. "We'll refine import credit and insurance, push for technical improvements in businesses, and widen the leeway for imports of grain, cotton and other commodities, to relieve domestic supply pressures," Chen said. The ministry official on Friday also declined to comment specifically on whether lower import duties are being considered, but the government-backed CNGOIC referred in a report to possible deliberations on two key agricultural products, boosting the credibility of rumors that such specific steps are among the arsenal of measures being actively considered.
"There's market speculation that the government is going to lower the import duties on soybean and soyoil," it said. The government may be considering lowering the import duty for soybeans to 1% from 3% and for soyoil to 5% from 9%, said an analyst with the influential Shanghai JC Intelligence Co. China's soybean imports have been surging due to strong domestic demand, reaching a record 54.8 million metric tons last year. "If it's true, the government's move is a sign of encouragement for more soybean imports," said Monica Tu, the Shanghai JCI analyst. It wouldn't be the first time the government has considered lower import duties on key farm products as part of efforts to curb inflation. In 2008, the government mulled similar tax cuts, including a reduction of the import tax on soyoil to 3%, but backed away as inflation receded following the global financial crisis.
Soyoil imports fell 44% in 2010 due to a months-long trade spat with China's largest supplier, Argentina, but customs data earlier this week showed edible oil imports in January rose 12% from a year earlier to 610,000 tons. Data on January imports of soyoil won't be available until late next week. The reduction of import duties on farm-product imports isn't out of line with expectations, given inflationary pressures, a senior executive with a Western farm lobby said. "They need to lower duties to reduce input costs," and increasing demand for edible oils falls within an expected consumption pattern for a fast-developing country, he said. Soybean and cotton top China's list of agriculture imports by demand, but the list also includes other products like wood, seafood and animal hides, the executive said.

U.S. soy, corn slip ahead of options expiry; wheat steady
SINGAPORE, Feb 18 (Reuters) - Chicago soybean futures fell 0.8 percent and corn lost around half a percent as expiry of March options later in the day pressured the grain markets, which rallied in the last session on higher U.S. weekly exports and news that China was mulling a cut in import tariffs.
"There is Chicago options expiry today, may be some impact on the market, but I would expect trade today to be subdued as it was pretty hectic on Thursday," said Ole Houe, an advisor on agricultural commodities at FCStone Australia.

Palm oil prices dip as traders eye China import tax
JAKARTA, Feb 18 (Reuters) - Malaysian palm oil futures fell reversing earlier gains as they took direction largely from other oil markets and possible food import tax changes in China.
"Some people say this (price fall) has happened because of an increase in palm oil supply, but it wouldn't affect prices this much," said Leonardo Gavaza, an analyst at Bahana Securities.

Argentine soy and corn crops seen steady - exchange
BUENOS AIRES, Feb 17 (Reuters) - Argentina's 2010/11 soy harvest is seen steady at 47.0 million tonnes, while the outlook for corn was held at 19.5 million tonnes, the Buenos Aires Grains Exchange said on Thursday in its weekly report.
Argentina is the world's No. 3 soybean exporter, and severe dryness linked to the La Nina weather anomaly prompted analysts to lower their forecasts for the harvest earlier this season, pushing up prices in international grain markets.

Brazil's No.3 soy state may harvest record crop
SAO PAULO, Feb 17 (Reuters) - Brazil's southernmost state of Rio Grande do Sul may harvest a record soy crop in 2011 after dryness caused by the La Nina anomaly was restricted to few areas, the state's crop agency Emater said on Thursday.
The soy crop of Brazil's No.3 producing state is now projected at 10.39 million tonnes, up from a previous estimate of 9.14 million tonnes.

China mulls import tax cuts to tame food inflation
BEIJING, Feb 17 (Reuters) - China's Ministry of Commerce has asked other ministries to consider potential cuts in import taxes on a range of goods including food, two sources said on Thursday, in a move seen aimed at taming rising inflation.
Speculation on which import duties could be cut reverberated through domestic and overseas agriculture markets. Soy and palm oil prices fell on talk of the possible cuts.

India's trade min: refined vegoil import tax "very fair"
KUALA LUMPUR, Feb 18 (Reuters) - India's Trade Minister said on Friday that import duties on refined edible oils were "very fair", playing down expectations the government will scrap the tax in its annual budget due later this month.
Soaring edible oil prices, owing to erratic weather in key exporters, have prompted some Asian countries to act. Bangladesh slashed import taxes earlier this week and China may be mulling a similar move.

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