Archived News

28/09/04 - SAO PAULO (Dow Jones)--With Brazilian soybean farmers refusingto sell in a slumping market and companies suspending crushing on negativemargins, Brazil may carry a large portion of its 2003-04 crop into nextseason, a industry leader said.Brazilian soybean output is expected to jump anything from 20% to 30%this year and, as a result, farmers may be forced to sell heavily at thestart of next year, he said."Unless something gives, producers could be caught in a difficultposition from March," said Cesar Borges de Sousa, vice president of theBrazilian Vegetable Oil Industries Association, or Abiove.Brazilian farmers have been selling very little soy over the last fewmonths. As a result, they still have 77% of their 51 million metric ton2003- 04 crop to sell, according to local agricultural consultantsCeleres. Farmers had already sold 95% of their crop at this stage over thepast five years.Producers held on to stocks in the belief that prices would react inthe interharvest season, as they have done in the last three years.But after a couple of rain-hit crops, the U.S. appears to have abumper crop this year and international prices have slid continuouslysince the start of September."Farmers are still holding on. They may be advised to rethink the plansoon though," said Borges.Producers still hold around 11.5 million tons of soybeans, accordingto Celeres, and have only four months till the arrival of the next crop.But it is tough to sell as negative margins have caused demand fromthe local crushers to slump. A number of major soymeal and soymealproducers, including Bunge and Cargill, have suspended crushing atBrazilian factories in recent weeks."In certain regions and in certain cases, it costs less to stop thefactory than to continue crushing. It all depends on their order books,"said Borges.As a result, industry soybean stocks are unlikely to have fallen fromthe 5.7 million tons registered on Aug. 31.Meanwhile, with a bumper U.S. crop in prospect, export demand has alsobeen weak.To make matters worse, farmers have also sold little of the coming2004-05 crop, which could intensify producer problems with stocks nextyear.Brazilian producers have sold just 9% of their forecast64.2-million-ton harvest compared with 39% at the same point last year,according to Celeres.Producers see no reason to commit their crop at current low prices,while buyers are cautious after being burned on a sharp upswing in priceslate last year.Forward sales normally pay for farmers' immediate crop and harvestexpenses. This year, farmers are going to have to sell more directly afterharvesting when prices are at their lowest, to cover costs."It's a shame as the forward sale system worked covering both thefarmer's and the industries' risks," said Borges.Crushers and exporters are also wary of offering futures contractsafter farmers broke deals last season to take advantage of a price spikelate last year. Producers invoked a clause in civil law that nullifies acontract if it favors one party too greatly. A number of crushers andfarmers remain locked in court over the issue, said Borges.Should Brazilian farmers lose large portions of their crop to droughtand the dreaded Asian rust fungus this season, stocks won't be an issueand prices should rise."But that could cause farmers to break forward contracts again," saidBorges.

25/09/04 - According to customs statistics, China imported 1.6683 milliontons of soybeans in August, with 887,700 tons from Brazil and 779,400 tonsfrom Argentina. China imported 12.505 million tons of soybeans fromJanuary to August in 2004, down 15%. From January to August, Chinaimported 6.3266 million tons of soybeans from the USA, up 1%, 3.7094million tons from Brazil, down 22.11% and 2.4602 million tons fromArgentina, down 33%. China imported 15.48 million tons of soybeans fromOctober 2003 to September 2004, and if the imports in September are 1.5-2million tons, the total will reach 17-17.5 million tons. China imported2.977 million tons of soybeans in January-August from Nanjin customs,23.8% of the total, 2.999 million tons from Qindao customs, 23.9% of thetotal and 957,000 tons from Shenzhen, 7.7% of the total.

25/09/04 - The soybean has a bumper harvest in Heilongjiang, approaching6.2 million tons, up 11%. The soybean has a bumper harvest in NortheastInner Mongolian Autonomous Region, approaching 1.05 million tons, up 96%.NGOIC currently forecast the Chinese soybean production at 17.5 milliontons this year, the highest level in history and up 14%, and the domesticsoybean crushing consumption is forecast at 8 million tons.

CANBERRA, Sept 27 AAP - Global crop yields must soar in coming years orthe world will face a grain shortage, one of the world's leading grainsexperts warned today.

25/09/04 - The grade 4 soyoil ex-factory price is at 6,300 Yuan per tonthis week in Hebei, Beijing and Tianjin, with the bulk grade 1 soyoilex-factory prices at 6,520-6,560 Yuan per ton. The grade 4 soyoilex-factory price has dropped again in Shandong, with the current prices at6,200 Yuan per ton, and 6,280-6,300 Yuan per ton in Henan.The grade 4 soyoil ex-factory prices this week are at 6,230-6,240 Yuan perton in Jiangsu, 6,150 Yuan per ton in Guangdong and 6,220-6,240 Yuan perton in Fujian. The current grade 4 soyoil ex-factory prices are at 6,280Yuan per ton in Dalian and 6,400 Yuan per ton in Shenyang, Liaoningprovince, and 6,460-6,480 Yuan per ton in Jilin and Heilongjiang.The grade 4 soyoil ex-factory prices this week are at 6,500 Yuan per tonin Guangdong and Fujian, 6,700 Yuan per ton in centreal China and 7,000Yuan per ton in Sichuan and Chongqing.(1 yuan = RM0.4591)

MUMBAI, Sept 28 Asia Pulse - India's imports of palm oil were expected toshoot up to 4 million tonnes during the current year as against lastyear's imports of 3.66 million tonnes, according to Godrej Internationaldirector Dorab Mistry.

28/09/04 NEW DELHI (Dow Jones)--Indonesia's exports of palm oil to Indiacould rise marginally next year given that India's edible oil output mayfall because of a smaller oilseeds harvest, an Indonesian industryofficial told Dow Jones Newswires.

29/09/04 - NEW Britain Palm Oil Limited has set January as its date toenter and develop oil palm in the Solomon Islands.

KUALA TERENGGANU, Sept 27 (Bernama) -- TH Estates Holdings Sdn Bhd (THEstates), a wholly-owned subsidiary of Lembaga Tabung Haji and Jasa BaktiSdn Bhd Monday signed a joint-venture agreement, which will see TH Estatesinjecting RM11.9 million capital to develop an oil palm estate in thestate.

9/27/2004 BUSINESS LINE- Mumbai, Sept. 25 - GLOBAL production of 10leading oilseeds, estimated at 365.35 million tonnes (mt) during 2004-05,is expected to result in ample oilseed supplies worldwide but there areconcerns about the drought in Argentina and Brazil, according to Mr ThomasMielke, Editor, Oil World.

JAKARTA (Antara): The Agency for the Assessment and Application ofTechnology (BPPT) started on Monday testing the use of palm-oil-basedbiodiesel on 23 employee buses as a way to introduce the use of biodieselfuel.

Mumbai , Sept. 26 - INDIA'S edible oil industry could witness aconsolidation of domestic and international players, especially amongthose involved in overseas trades, according to a senior industry member.