Archived News

8/6/2004, Farm Industry News - Several segments of the U.S. agriculturalsector are preparing a quick, effective response if soybean rust isdetected in this country. Soybean rust is a devastating disease thatimpacts soybean yields in many growing areas outside of North America.

08/04/04, Southeast Farm Press - While acreage, demand and weathercontinue to dominate the news in the corn and soybean markets, oneinteresting sidebar is what will happen when and if the United States runsout of soybeans before the new crop becomes available.

05/08/04 - SINGAPORE (Dow Jones)--Asian cash palm oil prices werehigher Thursday, supported by gains in the futures market and buyinginterest from India and China, traders said.At 0910 GMT, the benchmark October crude palm oil contract on theBursa Malaysia Derivatives was trading at 1,440 ringgit ($1=MYR3.8) ametric ton, up MYR35 from Wednesday's settlement price.The presence of India and China - the world's leading consumers andimporters of palm oil - is supporting general market sentiment, traderssaid.Preparations for September's mid-Autumn festival encouraged China toenter the market.In India, the hot and dry weather in July triggered concerns that thecountry's oilseed production could fall this year. However, rains haverevived since last week and are expected to improve throughout August,according to government projections. This has slowed India's demand overthe past few days.However, India returned to the market Wednesday, boosting sentiment inboth the physical and futures markets, one trader said.Market participants are also awaiting the latest report that will beissued by private forecasting firm Palmis Management Bhd. Friday on itsestimates for Malaysian palm oil production, exports and stocks in July.The Palmis data is a prelude to official supply and demand figures,which are due to be issued by the Malaysian Palm Oil Board Aug. 12.In the Malaysian cash market, CPO for August shipment was offered atMYR1,480 ringgit/ton, up MYR25 from Wednesday, delivered basis in SouthMalaysia.RBD palm olein for August shipment was offered at $425-427.50/ton, up$5-$7.50 from Wednesday.RBD palm oil for August shipment was at $415-$417.50/ton, up $5-$7.50from Wednesday.In Indonesia, RBD palm olein in Jakarta was offered at 4,250 rupiah($1=IDR9,170) a kilogram, up IDR25 from Wednesday.CPO in Medan was offered Thursday at IDR3,694/kg. CPO wasn't quotedWednesday.In other news, Indonesia sold 4,500 metric tons of crude palm oil at asemiweekly government auction Thursday, said an official from PTPerkebunan Nusantara, the agency that sells palm oil from state-runplantations.The official said the auction price was up IDR30/kg from the previousauction

SAO PAULO (Dow Jones)--Brazilian soybean output could reach 64.2 millionmetric tons in the 2004-05 season (October-September), some 26% higherthan last season as yields return to normal after last year's weather anddisease problems and planted area grows, said local agriculturalconsultancy Celeres Thursday.Planted area is seen jumping 7.6% to 22.9 million hectares from 21.3million hectares last year while average yields are seen rising 16.9% to2,802 kilograms per hectare from 2,397 kg/hectare."Soybeans remain attractive to farmers despite the losses to droughtand Asian rust incurred last year. It is a better bet than corn," saidAnderson Galvao Gomes, Celeres' soy analyst.Celeres' forecast is a little lower than the U.S. Department ofAgriculture forecast for Brazilian output of 66 million tons, releasedlast month.Brazil is the world's No. 2 producer and exporter of soybeans.

SAO PAULO (Dow Jones)--China's soy firms have medium- to long-termplans to start planting soybeans in Brazil, taking advantage of theexcellent growing conditions and low production costs in the center-west,a top Chinese trade official said.In 2003, China imported more than 5 million metric tons of soybeansfrom Brazil, the world's No. 2 producer, and it is looking to guaranteethis supply, said Charles Tang, president of the Sino-Brazilian chamber ofcommerce."It isn't difficult to buy 200,000 or 300,000 hectares to plant," saidTang, while accompanying a Chinese trade mission visiting Brazil.The intention is to integrate the Brazilian and Chinese soy industriesmore closely. In the interim, Chinese firms hope to close long-term supplycontracts with Brazilian cooperatives to build their own warehouses inBrazil, he said.Soy trade relations between the two countries were strained earlierthis year by China's decision to temporarily ban Brazilian soybean importsfrom 23 companies. However, Brazil's industry remains keen to increaseties.Chinese companies are interested in planting in the frontier soyregions of the center-west.

Thursday August 5, 2004 - RISING freight rates are threatening to throttlea pick-up in demand for Asian palm oil, as world crude oil prices soar torecord highs, said industry officials.

Friday August 6, 2004 - THE outlook for crude palm oil (CPO) prices is notas bearish as many expect, said Plantation Industries and CommoditiesMinister Datuk Peter Chin Fah Kui.

Wednesday August 4, 2004 - SARAWAK will have two more palm oil refineriesand 10 new mills to cater to the rapidly expanding oil palm industry.

8/5/2004 - Rachel Eidelman and colleagues from the Agatston ResearchInstitute, Miami Beach, Florida, US, reviewed the literature and foundthat, in the studies covered by the review, vitamin E did not reduce therisk of heart attack or stroke.

BUENOS AIRES (Dow Jones)--Argentina should not cede to internationalpressure and give up a differential tax plan that encourages theproduction of soyoil and soymeal, the Argentine Oilseed Chamber saidWednesday.The Argentine government taxes exports of soybeans and soybeanproducts at 23.5% and 20%, respectively. The lower tax on soy productsaims to boost production of these goods because they bring added value tothe economy.However, the European Union, the U.S. and other nations oppose thedifferential tax, saying it gives an unfair advantage to the localsoybean-processing industry. The policy has complicated recentnegotiations between the E.U. and Mercosur, a regional trade bloccomprising Argentina, Brazil, Paraguay and Uruguay."The Argentine Oilseed Chamber expresses its support for the positionadopted by the government to defend the policy of not negotiating thedifferential tax in Mercosur-E.U. talks or in the World TradeOrganization," the chamber said in a statement.While soybeans can be exported directly, soymeal and soyoil must firstbe extracted from the bean at processing plants. The derivatives, around95% of which are exported, are then packaged and sold at higher prices.In addition to adding value to the final product, this processfortifies Argentina's industrial sector and provides jobs for localworkers.For the E.U. and the U.S., however, the differential tax is akin to anexport subsidy. Both have called on Argentina to ax the benefit,especially since Argentina often complains about export subsidies in theE.U. and U.S."Amid this pressure, it's worth noting that the differential exporttax is not - and does not resemble - a subsidy such as those thatdeveloped nations use to boost their production and exports," the chambersaid in the release. "Second, this is a legal tool that favors theindustrialization of raw materials in the country, which creates morework, investment and export capacity."The chamber said it was unacceptable for Argentina to give up thedifferential tax and that doing so would "bring grave consequences" to thecountry's economy.Meanwhile, the chamber said the tax serves to compensate for higherimport tariffs that developed nations place on elaborated products such assoyoil."Raw materials - in this case grains - do not currently face importtaxes in world trade, though processed products face very high tariffs orthey are subject to quotas," the chamber said in the release."The differential tax compensates for this," Alberto Rodriguez, thechamber's executive director, told Dow Jones Newswires Wednesday.Finally, the chamber slammed the existence of export subsidies indeveloped nations, particularly in the U.S.Subsidies to U.S. soybean farmers between 1998-2000 boostedproduction, causing world soybean prices to decline to their lowest levelsin 30 years, the chamber said."This led to the bankruptcy of seven large Argentine oilseed companiesand caused the sector to lose a minimum of $1 billion," the chamber saidin the release.Argentina is the world's third-biggest soybean exporter and the topexporter of soyoil and soymeal. This is despite the fact that farmers inthe U.S. and Brazil, the world first- and second-ranked soybean producers,respectively, face no export taxes.

KUALA LUMPUR, Aug 4 Asia Pulse - Petaling Garden Berhad said itsindirectly-owned subsidiary, Perusahaan Minyak Sawit Bintang Sdn Bhd(Bintang), has signed an agreement with Eonchem Technology Sdn Bhd(Eonchem) to construct a Palm Oil Solvent Extraction Plant for RM5 million(US$1.3 million).

8/4/2004 - THE Government is targeting a fresh fruit bunch (FFB) yieldof 35 tonnes per ha a year for the palm oil industry.It also wants to increase the oil extraction rate (OER) to 25 per cent.