Archived News

8/31/2004 (Graphic Arts Monthly) - This year marks the silver anniversaryof the research program launched by the then-called American NewspaperPublishers Association (ANPA)--now the Newspaper Association ofAmerica--to develop an alternative oil source for the petroleum-based newsinks then in common use by newspaper publishers. The intensive program wasimpelled by the volatile price fluctuations in crude oil that were, at thetime, causing both periodic news ink shortages and a threat to theprofitability of ANPA's members.

8/31/2004 (BBC MONITORING INTERNATIONAL REPORTS) - Palm oil growers inTanintharyi [Tenasserim] Division have asked the government for more landso they can expand their plantations, said a senior agricultural officialfrom the Myanmar [Burma] Perennial Crops Enterprise.

BEIJING, Aug 31 Asia Pulse - China's State Development and ReformCommission (SDRC) and the Ministry of Commerce (MOC) jointly issued theNotice on Redistribution of Import Quotas for Agricultural Products inlate August, with contents as follows:

8/30/2004 (THE BIRMINGHAM POST) - Sustained high crude oil prices willlead to greater use of more expensive biofuels, but consumers will needyet more incentives for demand to really take off, producers and analystssay.

JAKARTA, Aug 30 Asia Pulse - The country's production of crude palm oil(CPO) almost doubled from 5.6 million tons in 1998 to 10.6 million tons in2003, Agriculture Minister Bungarana Saragih said.

8/30/2004 - DIET trends aren't just for adults anymore. A new obsession ofAmerica's food, beverage and restaurant companies is thwarting childhoodobesity. With more nutritious products, healthier menus and new activityprograms, the companies have begun a big push aimed at the youngestgeneration.

8/31/2004 (PHILIPPINE DAILY INQUIRER) DUMAGUETE CITY - Coconut farmers andcopra traders in Negros Oriental have vowed to work together to preventthe loss of the country's biggest foreign copra market-the European Union(EU).

CEDAR FALLS, Iowa (Dow Jones)--Rainfall in Malaysian palm oil regions wasbelow normal during the first January-June 2004 and palm oil yields may bereduced from what they otherwise would have been in late 2004 and early2005, according to information from the U.S. Department ofAgriculture's Foreign Agricultural Service web site.However, based on rainfall over the past 10 quarters, Malaysian palmoil yields should to be near trend overall during the next year and ahalf. Production levels should trend higher as area under oil palmcontinues to expand at a fairly consistent rate.Rainfall in the first two quarters of 2004 averaged 139 millimetersbelow normal across Malaysia. It rained 159 millimeters per month, on aweighted average basis, during the first quarter and 167 millimeters permonth during the second quarter, that is 13 and 33 millimeters belownormal respectively, the report said. This should result in near toslightly below normal palm oil yields from October 2004 through March 2005because low rainfall reduces pollination, which reduces yield 6 to 9months after the low rainfall event.Examining the last 10 quarters, above normal rainfall was receivedduring 4 of the quarters, and below normal rainfall was received duringthe other 6 (see Malaysia Rainfall graph). As a result, output levelsshould be fairly close to trend during the next 6 quarters, but belownormal output is expected from October 2004 to March 2005. Conversely,better than normal yields are expected during July to September 2004 andfrom April to December 2005, the report said.An examination of historical yields indicates that deciding whatnormal yields are is a bit problematic. The lagged rainfall effectresulted in rather poor yields from 1997/98 to 1999/2000 when yieldsaveraged 3.63 tons per hectare, but the lagged rainfall effect resulted infavorable yields from 2001/02 to 2002/03. Additionally, there has been agenerally rising yield trend since 1991/92, as improved varieties ofplanting material have becomeavailable to oil palm plantations.The Malaysia Palm Oil Board has released area-under-oil-palm-data for2003, indicating that area expansion is continuing at about the same levelas in previous years. The Board put mature area at 3.30 million hectares,up 115,000 hectares from 2002. The growth in area was 183,000 hectares in2002 and 63,000 hectares in 2001. Mature area increased an average of128,000 hectares per year over the last ten years. Immature area is areathat has been planted but has not yet begun to produce fruit. It takes 3to 4 years from planting until palm trees are mature enough to producetheir first fruit bunches. Total area under palm, mature and immature, was3.80 million hectares in 2003. Total area increased 132,000 hectares in2003 compared to a 10-year- average growth of 150,000 hectares.Using Malaysian rainfall data, yield for 2003/04 (Oct.-Sept.) isestimated by the Malaysia Rainfall Regression Model (MRRM) at 4.00 tonsper hectare, which is above the 5-year-average of 3.91 tons per hectare,but below the 10- year trend of 4.20 tons per hectare. This projectionwould give a production level of 13.2 million tons (using a harvested areaof 3.30 million hectares), with one quarter remaining in the marketingyear. The projected level is less than USDA's August forecast of 13.4million tons. The USDA is giving credit to increased fertilizerapplications and the use of improved selections of oil palm for higheryields that have been seen recently. The MRRM projects yield for 2004/05at 3.77 tons per hectare, and that would give a production level of 13.0million tons using harvested area projected at 3.46 million hectares.This is less than the 13.8 million tons forecast by USDA in August.Note: The MRRM linear regression model uses rainfall lagged 3quarters, 1- year cumulative rainfall lagged 6 quarters, and time asindependent variables regressed against yield. Because of thecharacteristics of linear regression, the model continues to increaseprojected yields even as rainfall becomes excessive; thus, the model tendsto overstate yield when average monthly rainfall lagged 3 quarters isabove 300 mm, and understate yield when rainfall is optimal. A variety ofinformation sources are used in determining official USDA estimates forMalaysian palm oil.

KUALA LUMPUR, Aug 30 (Bernama) -- The decision on agriculture, made by theWorld Trade Organization's (WTO) General Council (GC) last month, wouldhelp address the high tariffs imposed on Malaysia's agricultural products,especially palm oil.

KUALA LUMPUR (Dow Jones)--Asian cash palm oil prices were higherFriday, with products in Malaysia extending gains as the futures marketcontinued on its uptrend amid keen short covering interest.Indications of renewed demand from India for palm oil products alsolifted the Malaysian market, traders said.At the Bursa Malaysia Derivatives, the benchmark CPO futures contractwas at 1,538 ringgit ($1=MYR3.8) at 0717 GMT, up MYR25 from Thursday totouch its highest level in about two months.Traders said technical momentum turned bullish after the benchmarkcontract surpassed the MYR1,500 psychological resistance level Thursday.The breach of the key level triggered a wave of short covering as shortposition holders bought back to cut their losses."We're in a technically-driven market now and it appears that theremay be some room for the market to go up further. In terms offundamentals, there's nothing new to support this (rise)," a trader said.Traders said the sudden turnaround in the market has triggered somefresh demand from consumers, led by India.They said trading houses dealing with the Indian market were activelybuying palm oil products Friday.Indian demand for palm oil is usually strong at this time of the yearahead of major religious festivals later in the year, they said.The country has to rely heavily on imports because its owndomestically-produced oils won't be available until the fourth quarter,traders said.Atul Chaturvedi, vice president of Adani Exports, one of India'sbiggest trading houses, said Wednesday edible oil imports may rise in themarketing year beginning Oct. 1 because of lower domestic output.He said it was "highly unlikely" oilseeds production this year wouldmatch the 25 million tons produced in the last financial year ended March31.In the cash market, CPO for September shipment was offered atMYR1,585/ton, up MYR15 from Thursday, delivered basis in South Malaysia.RBD palm olein for September shipment was offered at $452.5/ton, up $5from Thursday,RBD palm oil for September shipment was offered at $442.5/ton, also up$5.In Indonesia, RBD palm olein in Jakarta was offered at 4,600 rupiah($1=IDR9,275), up IDR200 from Thursday.There were no prices for CPO in Medan so far, traders said.

RIO DE JANEIRO, Brazil, Aug 26 (Reuters) - Brazil's federal governmentplans to allow the blending of 2 percent biodiesel in diesel fuel beforethe end of 2004, the agriculture ministry said on Thursday."Brazil has a large number of products, such as soybeans, sunflowerseed, castor beans and oil palm, with which to produce biodiesel," theministry said in a statement.It said that the green fuel won't reduce engine performance and wouldreduce diesel imports and create jobs, especially in family farming.The government aims to increase the biodiesel blend to 5 percent withinfive years.The official news agency Agencia Brasil said that a 2 percent biodieselblend could create more than 150,000 family farming jobs in 2005 due toincreased demand for castor beans and other agricultural raw materials.Use of locally produced biodiesel would also reduce diesel imports,estimated at 6 billion liters annually and 16 percent of total dieselconsumption, it added.

BEIJING, Aug 26 Asia Pulse - It is expected that China's oil crops supplywill be sufficient in the 2004/2005 year, and the supply of edible oil mayeven go surplus.