Archived News

7/17/04 - India and China are expected to cut down on imports of crudepalm oil (CPO) from major producers such as Indonesia and Malaysia in thenext few months, chairman of the Indonesian Palm Oil Association, DeromBangun, said.

Sunday July 18, 2004 - THE Higher Education Ministry intends to compile acomprehensive record of scientific research projects currently undertakenby private universities in Malaysia.

SAO PAULO (Dow Jones)--Brazilian soybean production will totalapproximately 66.6 million metric tons in the 2004-05 season(October-September), some 33.5% higher than the 49.9 million tons producedin the last drought- and disease-hit season, according to the first newcrop survey released by the local Safras e Mercado agriculturalconsultancy Friday.The estimate is in line with the 66 million tons forecast by the U.S.Department of Agriculture earlier in the week.The foundation of production growth this season will be a 23% recoveryin average yields this year, said the report. In 2004-05, productivity isseen reaching 2,882 kilograms per hectare compared with 2,346 kg/hectarelast year.According to a Safras report, the estimate assumes favorable weatherconditions, but takes into account the inevitability of crop losses toAsian rust and the fact that yields are normally low in the newlycultivated frontier lands in the northeast and center-west.Safras is forecasting that planted area will total 23.09 millionhectares, some 8.2% higher than the 21.34 million hectares cultivated thisyear.As such, the soy belt will be of record size for the sixth consecutiveyear, although there is much less euphoria surrounding the prospects forsoybeans this year following the recent slide in prices.But farmers will plant soybeans regardless, especially in the frontierregions of the center-west, for a number of reasons. Firstly, averageprices over the last year have been attractive; secondly, farmers stillmade profits last year despite crop losses and believe they can do soagain; thirdly, there is more credit available for soybeans than for othercrops; and finally soybeans are the easiest crop to sell."At this moment, prices aren't favorable for any (of the principal)products. In these circumstances, the liquidity of soy makes thedifference," said Flavio Franca Jr., Safras' soy analyst.However, farmers are aware that they will have to invest heavily tocontrol Asian rust next year and still may incur losses.The Safras estimate is the halfway point of a range in which itpredicts output will fall of 64.5 million to 68.6 million tons.The center-west state of Mato Grosso is expected to lead Brazil inproduction again next season with output of 17.7 million tons, up 18.7%from 14.9 million tons in 2003-04.Next will come the southern state of Parana with production of 12.4million tons, up 22.2% from the 10.1 million tons produced last year.

15/7/04 CEDAR FALLS, Iowa (Dow Jones) - World oilseed productionestimates for 2004/05 were increased 776,000 tons in July to 379.1 milliontons, the U.S. Department of Agriculture said Tuesday in its Oilseeds:Situation and Outlook report.Increases were noted for rapeseed (Canada and the EU), sunflowerseed(Eastern Europe), and cottonseed (China and India), offsetting reducedsoybean production in the United States. Estimates of 2003/04 oilseedproduction rose 138,000 tons to 335.9 million tons this month. Productionincreases for India, Brazil, and Australia cottonseed led the way, theUSDA noted.Reports from Canada prompted an increase in both rapeseed and soybeanproduction for 2004/05. Soybean production is forecast to reach a record3.0 million tons due to improved yields and record plantings in 2004.Rapeseed production is also forecast to rebound to 7.0 million tons in2004/05 as area expansion, coupled with adequate soil moisture shouldincrease production.Romania's sunflowerseed production forecast for 2004/05 was increased300,000 tons this month. Production is forecast to reach 1.4 million tons,unchanged from last year's improved output.Forecast world oilseed exports for 2004/05 increased 306,000 tons thismonth to 78.0 million tons. Increased sunflowerseed exports from Romaniaand rapeseed from Canada accounted for much of the increase. Forecast2004/05 soybean exports declined only slightly this month as lower U.S.export volume was nearly offset by increases in South American andCanadian exports. Demand for imported U.S. soybeans by Canada is expectedto decline in 2004/05 in response to the increased availability ofdomestic soybeans. Canada's 2004/05 soybean import forecast was reduced150,000 tons to 300,000 tons this month and would be the lowest importlevel since 1998/99. The world soybean trade forecast for 2003/04 wasreduced 1.0 million tons this month in response to the recent slowdown inChina's import pace. Consequently, the South American export forecast for2003/04 were also reduced.Forecast protein meal production for 2004/05 was increased 155,000tons to 207.8 million tons in July. Increased rapeseed, sunflowerseed, andcottonseed crush led to the increase. Soybean meal production for 2004/05was reduced 166,000 tons to 144.0 million tons in response to reducedcrush forecasts for China and the United States this month. Protein mealtrade for 2004/05 was marginally higher this month, due to increases inforecast rapeseed and sunflowerseed meal exports. Protein meal productionin 2003/04 was reduced nearly 240,000 tons to 194.6 million tons. Reducedproduction in China, in response to an expected decline in soybean importsfor 2003/04, more than offset increased crush and soybean meal productionin the United States.Forecast world vegetable oil production for 2004/05 was increased166,000 tons this month to 105.6 million tons. Increases in production ofrapeseed, sunflowerseed and cottonseed oil more than offset reducedsoybean oil production. Forecast vegetable oil imports declined nearly200,000 tons in July, mainly due to a 200,000-ton reduction in China'simport forecast.

MEDAN, July 15 Asia Pulse - China and India are expected to cut theirimports of crude palm oil (CPO) from major producers such as Indonesia andMalaysia in the next few months, chairman of the Indonesian Palm OilAssociation (Gapki) Derom Bangun said.

HONG KONG (July 16 2004): China, the world's top soya importer, said itwould stick to a zero tolerance policy on harmful fungicide carboxyl forsoya cargoes, despite an agreement with Brazil to scrap a ban on exportersbecause of the chemical.

7/15/04 (Oilmandi) India - The edible oil processing industry is feelingleft out due to the government’s apathy.

7/15/04 (Oilmandi) - The US Department of Agriculture (USDA) has forecasta record oilseed output of 379.1 million tonnes (mt) for 2004-05, aremarkable 43.2 mt increase over 335.9 mt estimated for 2003-04.A significant part of the global production increase will come fromsoyabean. Forecast of this crop is placed at a new high of 224.6 mt,versus weather and disease-affected 189.1 mt in 2003-04.All the three major origins the US, Brazil and Argentina are forecast toharvest record soyabean crop, with higher acreage driven by attractiveprices over the last eight months.

7/15/04 (Oilmandi) - The expectation for the 04-05 U.S. sunflower crop isthat it will need to be rationed for both confections and oil types. Oldcrop confection prices increased last week and it appears that most of theoil-type needs are covered through the summer. The mandated labeling fortrans fatty acids is one crop year away. Some companies have already madethe switch to non-hydrogenated oils but there remain many that have not.The message to these food companies is that they need to start theplanning now to insure supplies in 18 months. Of the oils that can beutilized without hydrogenation, only sunflower and specialty canolas canincrease production. Cotton and corn oils are by-products of otherindustries. Consumer groups have pegged trans fatty acids as a healthhazard and have asked FDA to remove trans fatty acids from the ‘generallyconsidered safe’ status. Trans fatty acids have been compared to the ‘nicotine of the food industry’ implying that law suits are probable. It isassumed that this issue is only going to increase in importance.

12/7/04 - THE current crude palm oil (CPO) price level of RM1,450 pertonne is sustainable until the end of this quarter, said Golden HopePlantations Bhd (GHope) group chief executive Sabri Ahmad.

MALAYSIA'S crude palm oil (CPO) production this year is forecast to rangebetween 13.5 million and 13.6 million tonnes, almost similar or slightlyabove last year's output of 13.4 million tonnes, said PlantationIndustries and Commodities Minister Datuk Peter Chin.

ZHENGZHOU, July 13 Asia Pulse - Experts predict that with imports andstocks of soybean oil hitting record highs, the edible oil market in Chinamay remain stable and drop slightly in the near future.