Archived News

U.S. Sunflower Briefs: Crop doing well, Pringles praises NuSun oilUSA, 7/16/2001(Soyatech)CROP CONDITIONS: Soil moisture is becoming a common topic in many areas ofthe sunflower producing region. Parts of Kansas and Colorado haveexperienced exceptionally hot temperatures requiring a high water use. Thesunflower crop is generally making good progress with the warmtemperatures and plant stage varies from emergence to bloom. Pest problemsare minimal at this time. The Thistle caterpillar can be found in somesunflower fields and treatment is advised when defoliation reaches 25percent. Stem weevils are abundant in parts of the High Plains.

Austral strongly advocates ePOMEXMonday, July 16, 2001(The Star) - AUSTRAL Enterprises Bhd, one of the topnine major plantation companies in Malaysia, strongly advocates theformation of the Malaysian Palm Oil Exchange (ePOMEX), the world's firstelectronic exchange for trading oil palm products for physical delivery.Austral group managing director Dr Radzuan Abdul Rahman said: "We aredefinitely among the earliest shareholders and a firm believer in theexchange."Austral has taken up a 5% stake in Ecomex Palm Oil (M) Sdn Bhd (ePOM), thecompany which undertakes the implementation and operation of ePOMEX.Apart from the two ePOM anchor shareholders--Heitech Padu Bhd and NewZealand-based Global Ecomex Ltd--Austral is also optimistic that ePOMEXwill received strong backing from producers and positive support from thegovernment."This timely and solid electronic exchange will pave way for a moreefficient and aggressive market," Radzuan told Star Business in KualaLumpur.Presently, Heitech Padu has an 18% stake in ePOM, followed by GlobalEcomex (19%), IOI Corp (3.9%), Felda (10%), Austral (5%) and otherindividuals (13%)."We want ePOMEX to attract a well-balanced mix representing major playersin the industry, namely the producers, refiners, millers, oleochemicalcompanies and traders."To transform ePOMEX into an almost perfect electronic exchange, we need afull representation of shareholders and seatholders from theseindustries," added Radzuan. (One has to be a seatholder in order to tradeon ePOMEX.)Commenting on Austral's involvement in ePOMEX, he said the company may beviewed as a "seller" in the local market since Austral did not have arefining capability at this time.Personally, he views that sellers would benefit from the level playingfield available in an electronic marketplace."Perhaps more importantly, Austral's small but soon-to-be lucrativeinvestment in ePOMEX is our way of encouraging the development of thelocal palm oil industry, a vital engine for the economic growth."At the same time, Radzuan said, "it is also crucial for large independentrefiners to actively take up a role in ePOMEX as the exchange also rideson other opportunities as well."He believed that ePomex could already have a smooth first year ofoperation with Felda, the single largest producer of crude palm oil, beingone of ePOMEX shareholders and "perhaps getting at least five plantationgroups, refiners and traders."The top nine plantation companies in the country are IOI Corp, Sime Darby,Tradewinds, Golden Hope, Boustead, KL Kepong, Austral, Perlis PlantationsBhd and Kumpulan Guthrie.Meanwhile, ePOM chief executive officer Akit Sebli said: "ePOMEX expectsto trade between 4% and 5% of the total CPO production in Malaysia orabout 550,000 tonnes in the first year."At the same time, ePOMEX is also targeting to trade up to 25% of the totalCPO production over the next four years.The electronic exchange is slated to be launched in late August, beginningwith the physical trading of the CPO contract.Akit also mentioned that as immediately as convenient, ePOMEX planned tooffer its trading services to the overseas players as well.Asked on the current drawbacks of the traditional system of trading palmoil products, Radzuan said "market reach is dependent upon and largelydetermined by prior experiences with buyers and sellers over a longperiod."Traditionally, trading was often limited to the personal contacts ofmarketing personnel, he said, adding that this mechanism posed physicaldifficulties of contacting and negotiating with a significant segment ofthe market and was often restrictive.Radzuan said reliance on the futures market as a pricing benchmark alsoconfined trading within the Malaysia Derivatives Exchange's hours.The 24-hour trading on ePOMEX, however, brings together both buyers andsellers representing millers, refiners, palm kernel crushers, oleochemicalcompanies and traders in a single electronic marketplace.Citing on the trading application, he said buyers and sellers couldeffectively utilised the tools they needed to conduct either acomprehensive auction or a negotiated trade for their offers to sell orrequests to buy.As the exchange grows, other services ancillary to the actual trade willbe incorporated to further enhance the efficiency of the exchange.

CPO may be in for downward correctionMonday, July 16, 2001(The Star)- CRUDE PALM OIL (CPO) futures prices onthe Malaysia Derivatives Exchange (MDEX) skyrocketed last week as tradersscrambled in panic buying and forced prices briefly to the RM1,200 pertonne level the highest seen since April 25 last year.China's decision on palm oil import quota for the rest of this year at700,000 tonnes and sharply higher soyoil prices sparked the bullish rallyand caused many local refiners and speculative shorts to square-offearlier positions.The market has anticipated and reacted to the positive news from China,and the big question confronting traders this week is, would the bullishrally continue or would the market decide to sell-on-facts now that theChina factor has been discounted?

Foreign labour in oil palm estates a necessity: MPOASaturday, July 14, 2001(The Star)- THE use of foreign labour in oil palmestates is no more one of choice but one of necessity, according to theMalaysian Palm Oil Association (MPOA).Thus, the association wants the Budget 2002 to address the real costs ofusing foreign labour.MPOA said this in its memorandum for the Budget 2002 dialogue.The MPOA proposals also covered three other areas--the palm oil industryspecifically, the plantation industry in general and taxation.MPOA said that although the matters it submitted for consideration werelargely a restatement and reiteration of its stand in the previous year,the overall picture had now come into more clear focus."There is now more light than heat on the various issues affecting theindustry. It would be useful to relook at some of the pertinent issuesagain in the clear light of the latest developments," the associationsaid."Malaysia's economy used to be largely agrarian. In recent yearsagriculture has taken a back seat with the nation successfully pursuing anindustrialisation policy," it said. "The plantation sector however remainsa major contributor to the gross domestic product, but its share isdwindling vis-a-vis manufacturing."

Palm oil prices reach highest levels in almost a year

CHINA ISSUES 700,000 T PALM OIL IMPORT QUOTAS

Danaharta Appoints Special Administrators Of Soctek And SEOKUALA LUMPUR, July 10 (Bernama) -- Pengurusan Danaharta Nasional Bhdappointed Yeo Eng Seng, Adam Primus Varghese Abdullah and Wong Lai Wah ofErnst & Young as special administrators of Soctek Sdn Bhd and itswholly-owned subsidiary, Soctek Edible Oils Sdn Bhd (SEO) effective today.

Drop In May 2001 IPI

INDONESIA SAYS WON'T RAISE PALM OIL TAXES

MALAYSIAN PALM OIL JUMPS ON CHICAGO, FOCUS ON MPOB

MALAYSIAN PALMOIL ENDS LIMIT UP AT 13-MONTH HIGH

BRAZIL SOYBEAN EXPORT REGS 12.56 MLN T BY JUNE 30