China's palm oil demand growth may slow in 2010-2011 -COFCO
NUSA DUA, Indonesia Dec 3 (Reuters) - Growth in China's palm oil demand could slow 1.7 percent to 5.9 million tonnes in the marketing year that began in Oct 2010 as the country was on a soybean buying spree and the domestic crop improves, a researcher with COFCO said.
But any damage to crops, especially in South America, where drier weather induced by La Nina has slowed soy plantings and could affect yields, may boost palm oil imports, said Jennifer Yuan, a researcher with China's state-owned trading house.
Indonesian palm tax at comfortable levels-SMART
NUSA DUA, Indonesia Dec 3 (Reuters) - Indonesia's export tax on palm oil products are at comfortable levels but any steps by the government to change the structure needs to equally benefit planters and refiners, a top plantation firm said late on Thursday.
Palm oil giant SMART TBK said the government's plan to review the export taxes, currently at their highest this year at 15 percent in December, needs to consider small farmers who do not have similar economies of scale as big planters.
Palm oil may gain more users from EU biofuel rules-Neste Oil
NUSA DUA, Indonesia Dec 2 (Reuters) - European Union rules requiring vegetable-oil based biofuels to come from eco-friendly sources may boost palm oil use in the sector as green supplies of the tropical oil grow, a key Finnish oil refiner said on Thursday.
A Neste Oil official said green groups scrutiny of the Asian palm oil sector has spurred efforts to clean up estates and supply chains, placing it in a better position than other competing oils to meet EU sustainability criteria.
U.S. soy product futures close mixed, as soymeal weakened with soybeans in setback from strong gains. Market participants took profits on previous positions in soybeans and soymeal after broad commodity rally Wednesday, analysts say. Weaker-than-expected soymeal demand added pressure, as weekly U.S. sales of 133,800 tons were below trade estimates, they say. Weekly U.S. soyoil sales of 32,100 tons beat trade estimates. CBOT January soymeal dropped $2.80 to $345.70 per short ton, and CBOT January soyoil rose 0.23 cent to 52.84 cents per pound.(Source: CME)
China Takes Action To Cap Cooking Oil Prices –Source (Source: CME)
China has put policies into place to restrain food producers from raising cooking oil prices as part of efforts to address sharply higher prices and ensure supply to the public, an industry official familiar with the situation said. The move represents the reintroduction of price caps on basic necessities, albeit applied in a single commodity market--a far narrower version of a controversial yearlong policy that went into effect in January 2008. The policy action hasn't so far placed producers at a price disadvantage, and the measures may not last beyond the Lunar New Year in early February, the person, who is linked to a major global agribusiness. "There is still a margin to be made," he said, adding that margins for producers are generally between $20 and $50 a metric ton. "The aim is not to disadvantage suppliers."
Officials from the National Development and Reform Commission, China's top economic planning agency, met executives from major food producers Cofco Ltd., Jiusan Grain and Oil Group, the Yihai Kerry Group--owned by Singapore-based Wilmar International Ltd. --and Chinatex Corp. last week to ask the companies not to raise prices for cooking oil in small-package form, the 21st Century Business Herald reported Thursday. The companies would have to apply to the commission if they wanted to raise prices during this period, it said. "There are a couple of things in play. Obviously, there is policy action to control prices and use moral suasion, and the government is also holding auctions to address supply," the person said. According to some reports, the measures could last four months, but the person said they could be briefer.
"Beyond Chinese New Year, why would you want to control prices?" he said. The price cap on cooking oil extends a government policy adopted last month to increase government control of the market. The central government at the time appointed Cofco, Yihai Kerry and Chinatex as pre-approved bidders at state edible oil auctions, and said provincial grain authorities could recommend two to five more bidders of their choice. The move, aimed at neutralizing speculators, gave a competitive advantage to the larger players. Purchases at such auctions wouldn't be permitted to be resold, the State Administration of Grain said at the time.
India 2010-11 Edible Oil Imports Likely Flat At 8.8 Mln Tons (Source: CME)
India's edible oil imports this marketing year are likely to remain unchanged from last year as domestic output will rise enough to meet higher consumption, a senior industry executive said. India imported 8.8 million tons of edible oil in the year ended Oct. 31. The country is the world's largest edible oil importer and meets more than half of its requirements through imports. "The summer-sown oilseeds crop projection is higher. So the 3%-4% increase in [edible oil] demand could be made up by higher domestic oilseeds production," Sushil Goenka, president of the Solvent Extractors' Association of India, said. According to the Central Organization of Oil Industry and Trade, India's summer-sown oilseeds output in the marketing year that started Oct. 1 is likely to jump 12.4% to 15.4 million tons from 13.7 million tons last year. In 2009-10, the country's imports climbed to a record as international prices were low and the local crop shrank after the worst drought in nearly four decades.
India imports palm oil mainly from Indonesia and Malaysia, and soyoil mostly from Brazil and Argentina. "Sunflower oil imports may be lower [in 2010-11] due to higher prices and increasing price difference between soyoil and sunflower oil," Goenka said. Sunflower usually commands a premium over soyoil, but now the difference has widened to $250-$300 a ton from about $50-$100/ton a year earlier. India imported 630,005 tons of sunflower in 2009-10, while soyoil imports stood at 1.7 million tons. Goenka added that soyoil imports this marketing year will depend on the price difference with palm oil. The premium of soyoil over palm oil is currently $60-$80/ton. The Solvent Extractors' Association of India is also seeking the imposition of a 10% import tax on crude edible oil to protect local farmers, Goenka said. India doesn't impose any import tax on crude edible oils, but levies a 7.5% tax on refined edible oils.
Wheat dips from 3-wk top; corn, soy ease on profit-taking
SINGAPORE, Dec 2 (Reuters) - U.S. wheat fell around half a percent on Thursday as the market took a breather after climbing more than 7 percent in the previous session, the biggest rise in around 2 months, amid crop concerns and a broad based commodities rally.
"The slight weakness in Chicago market is perhaps just a pause after the steep rise that we saw yesterday," said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia.
Palm at new 28-mth highs on global commods, weather
KUALA LUMPUR, Dec 2 (Reuters) - Malaysian palm oil futures hit a fresh 28-month high on Thursday, tracking firmer global commodity markets and concerns over low production during the monsoon season.
"Palm oil is up mainly on overseas factors, especially the stronger grain and soy complex," said a trader
Heavy rain headed for Brazil's No. 2 soy state
SAO PAULO, Dec 1 (Reuters) - Most of Brazil's southern soybean states will get heavy rainfall over the weekend, which will favor development of the newly planted crops there, Somar forecast Wednesday.
No. 2 soy producing state Parana is expected to get 89 millimeters (3.5 inches) over the next five days. It has seen the best rainfall of the major soybean states since planting started in mid-September.
Palm oil may gain more users from EU biofuel rules-Neste Oil
NUSA DUA, Indonesia Dec 2 (Reuters) - European Union rules requiring vegetable-oil based biofuels to come from eco-friendly sources may boost palm oil use in the sector as green supplies of the tropical oil grow, a key Finnish oil refiner said on Thursday.
A Neste Oil official said green groups scrutiny of the Asian palm oil sector has spurred efforts to clean up estates and supply chains, placing it in a better position than other competing oils to meet EU sustainability criteria.
Argentine law reform could double soy seed sales
CHACABUCO, Argentina, Dec 1 (Reuters) - A new law being studied by Argentina's government could double sales of soy seeds, guaranteeing companies royalty payments and encouraging them to introduce new varieties, a leading supplier said on Wednesday.
The introduction of genetically modified (GMO) soy has helped Argentine farmers boost output dramatically over the last 14 years, but current regulations have deterred seed companies from marketing strains using the latest technology.
No comments:
Post a Comment