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ROME, June 10 (Reuters) - United Nations Secretary General Kofi Annan onMonday urged wealthy nations not to subsidise their agriculture, sayingsuch protection prevented poor countries from competing in agriculturalmarkets.Asked whether rich nations should drop protection of their agriculturethrough subsidies, Annan told Reuters in an interview: "Absolutely. Wecannot talk of free trade and truly open markets if we are going to dothat."Speaking on the sidelines of a World Food Summit, he added: "What's thepoint of helping dairy farms in the developing country and then sellingsubsidised powdered milk to their economy which makes it difficult forthem to continue their production."The United Nations estimates that wealthy nations spend some $300 billiona year on farm subsidies and says the money depresses world commodityprices making it impossible for third world farmers to compete in globalmarkets."You put yourself in the shoes of a small developing country, which cannotexport agricultural products because of restrictions and tariffs, adeveloping country that cannot export and compete on world markets becauseits richer partners are heavily subsidised," Annan said.The remarks were his strongest comments yet on the issue. In the past theUnited Nations has limited itself to saying that protection by rich statesof their agriculture created an uneven playing field.In his opening remarks to the summit earlier, Annan said the dumping ofagricultural produce by rich countries on developing countries' marketscould discourage poor farmers from producing and lead to unemployment andlost incomes."We must evaluate carefully the impact of the subsidies that are now givento producers in rich countries," Annan told delegates at the start of thefour day meeting."By lowering food prices in the poorest countries, they may help toalleviate hunger in some cases and in the short term," he said. "Butdumping surpluses can also have devastating long term effects -- rangingfrom disincentives for national production and unemployment -- whilemaking it impossible for developing countries to compete on worldmarkets."Against a backdrop of looming famine in southern Africa, Annan made a callto halt "the gnawing pain of hunger"."In a world of plenty, ending hunger is within our grasp. Failure to reachthis goal should fill every one of us with shame. The time for makingpromises is over. It is time to act," he said, adding: "According to someestimates, as many as 24,000 people die every day, as a result (ofhunger)."Delegates approved a declaration dubbed the "International AllianceAgainst Hunger", renewing a pledge made at a previous food summit in 1996to cut the number of hungry to 400 million people from more than 800million.The summit, organised by the U.N. Food and Agriculture Organisation (FAO),runs until Thursday.

HAMBURG, June 4 (Reuters) - Global 2001/02 season production of the mainedible oils will not cover demand and stocks will need to be drawn down,Hamburg-based newsletter Oil World said.In its latest global supply and demand forecast, it said world productionof the seven seed oils plus palm oil is estimated to rise by only 1.9million tonnes or 2.1 percent on the season to 90.3 million tonnes."This is insufficient to cover demand," it said. "We estimate the growthin world consumption to slow down but still to rise by 3.5 million tonnesor 4.0 percent to 91.4 million tonnes.""This will require a considerable reduction of stocks and justifies theprice rally we have seen in May," it said.The newsletter sees large near-term edible oil import demand coming fromIndia and China.It added: "Large soyoil supplies in the U.S., Argentina and Brazil will beabsorbed rapidly in coming months."A major reason for tight supplies is insufficient palm oil output. This isestimated at 23.83 million tonnes up against 23.49 million tonnes lastseason.But global palm oil consumption is estimated to reach 24.40 million tonnesagainst 23.25 million tonnes last season. Inadequate palm oil output isset to keep global demand for soyoil strong up to September 2002, thenewsletter said.This will help generate sharp rises in soyoil output by the U.S.,Argentina and Brazil.

NEW DELHI, June 6 (Reuters) - India has abundant stocks of key commoditiesand fears of a war between India and Pakistan have neither triggered panicbuying nor significantly harmed trade, officials and traders said onThursday.But they said grain exports had been hampered by the military using railwagons and due to port bottlenecks, while border tension had cut smugglingof sugar from India to Pakistan.Otherwise, edible oil imports to India, the world's largest buyer of theitem, had grown in recent weeks due to seasonal factors and gold dealerssaid demand for the precious metal was down as a result of highinternational prices.India and Pakistan have massed a million troops, backed by armour andartillery, along their borders in the dispute over Kashmir. India saysPakistan must end incursions by Muslim guerrillas that have stoked a12-year rebellion in Hindu-dominated India's only Muslim-majority state."We have more than adequate supplies of wheat, rice and sugar...there isno panic buying," an Indian Food Ministry spokeswoman told Reuters.She said that as of May 1, India had 62.5 million tonnes of wheat and ricestocks, well above the 24.3 million tonnes of grains which governmentprojections said would be needed as reserves on July 1. India also hassugar stocks of nearly 10 million tonnes.Tanvir Qureshi, vice-president of a supermarket chain owned by tradinghouse Adani Exports Ltd in the border state of Gujarat, said the firm hadnot seen any panic buying."It's normal business. We have not seen any panic buying or stocking up,"she told Reuters.There was no unusual stockpiling of foodstuffs even in the border city ofJammu, the winter capital of Jammu and Kashmir state which is at thecentre of the confrontation and in range of Pakistan's guns."People have become accustomed to all these things (border firing) thatthey take everything lightly...," said local resident Gyan Chand, owner ofa public telephone call office in Jammu.

JAKARTA, June 3 (Reuters) - Indonesia said on Monday it had found tracesof hydrocarbon in one of its crude palm kernal oil (CPKO) cargoes sent toEurope last month but dismissed market talk there was any dieselcontamination.Rumours have swirled in Malaysia's palm oil market that several cargoeshad been contaminated by diesel oil, reminiscent of the 1999 scandal thattarnished the image of Indonesia, the world's second largest grower andexporter after Malaysia."There was a higher hydrocarbon level in one or two tanks but it wasn'tsignificant although it is a warning for local palm oil producers to bemore careful in handling exports," Derom Bangun, chairman of theIndonesian Palm Oil Producers Association (GAPKI), told Reuters."No, it is not tainted by diesel oil, and we haven't received anycomplaints from buyers," he added but did not say how the traces ofhydrocarbon may have got into the cargoes.In 1999, some 85,000 tonnes of diesel-tainted crude palm oil (CPO) werefound to have been shipped from Belawan port in Sumatra to Rotterdam.Indonesia said last year it was working hard to convince buyers such anincident would never happen again.Trade sources said Indonesia produced some 8.2 million tonnes of palm oilin 2001, with some 60 percent being exported. The largest exportdestinations are the European Union, India and China.

Monday, June 3, 2002 (The Star) - PRICES of world commodities haverecovered since the beginning of the year after the downtrend last year.The star performer is cocoa. Precious metals, particularly gold, are alsooutstanding in terms of price performance.Among the other commodities are crude oil, crude palm oil (CPO), rubberand soyabean which have achieved growth rates of between 10% and 30% thisyear.Forecast of a shortfall in global supply for the second successive yearhas helped sustain the strong rally on cocoa prices.Cocoa prices have propelled to a 15-year high of £1,304 per tonne lastweek, before retreating to £1,298 per tonne last Friday. It has soared 31%or £307 since Jan 2.Cocoa prices started to head upward from November last year due to dryweather in production countries, namely Ghana and Ivory Coast, which haddisrupted cocoa production.Dealers said the uptrend might continue.“Many chocolate manufacturers are far from sufficiently covered, and arerunning to catch up with the soaring cocoa price,’’ said a dealer.The recent “gold rush” among investment fund managers to seek safe havensamid uncertainties on the world political scene has pushed the price ofgold up to US$326 per ounce last Friday – the highest level since October1997.Platinum prices also rose to a peak of US$554 per ounce in April. Theprice of platinum finished the week at US$542 last Friday.In addition to factors such as tension at the India-Pakistan border andthe Israeli-Palestinian conflict, the weakening US dollar has also boostedthe price of gold.The fall in the greenback against other currencies will mean a rise ingold price, which is quoted in US dollars. The US dollar slumped to asix-month low of 123.24 against the yen last Thursday before ending theweek at 124.09 last Friday.The low interest rate environment that has resulted in ample liquidity andthe perceived higher risk on equities has also benefited gold prices asthe opportunity cost for the precious metal becomes lower.Crude oil prices are also faring well. The Brent oil price had reboundedfrom the year’s low of US$18.17 per barrel on Jan 18 to a high of US$27.12per barrel on May 14. It was last traded at US$23.89 per barrel lastFriday.Tapis oil has rebounded to US$24.80 per barrel last Friday from US$19.90per barrel. It reached a height of US$27.25 on May 14.The commodity has regained lost ground against the backdrop of risingoptimism on the global economy, which will raise the demand for oil sincelate January.Meanwhile, the conflict in the Middle East, which pumps up one-third ofthe world oil supply, has lifted crude oil prices in April and the firsthalf of last month.Crude oil prices eased off in the past two weeks as worries of supplydisruption, due to war, eased. On top of that was the higher-than-expectedoil inventory in the US.Oil prices slumped below US$18 per barrel after the terrorist attacks onthe US last September. There were fears of a lower demand for oil.Crude palm oil (CPO) prices have also staged an impressive run up. CPOprices surged to their three-year high of RM1,426 per tonne last Fridayand has gained RM273 or 24% since the beginning of the year.Oil World has forecast a 600,000-tonne fall in oil stocks for the periodbetween January and September.This would reduce the world’s stocks to a two-year low of 3.26 milliontonnes by end-September compared with 3.81 million tonnes last year and3.71 million tonnes two years ago.China’s intention to impose a 24% import duty on soya bean oil has alsospurred the uptrend on CPO prices because the higher duty is likely toprompt the Chinese to substitute cheaper palm oil for soya oil.Traders see the possibility of the CPO price testing the RM1,500 per tonnelevel in tandem with the strengthening soya bean prices.“The soya oil prices are likely to remain firm as China has not receivedenough quantities of soya oil and the expectation of a wet weather in theUS will affect production,’’ said a dealer.(The informations and opinions expressed in this article represent theviews of the author only. They should not be seen as necessarilyreflecting the views of Palm News)

5/31/2002 (Asia Intelligence Wire) - A gas station selling bio-diesel,fuel famous for its environmentally- friendly nature, will debut as earlyas next month in Korea, the Ministry of Commerce, Industry and Energyannounced yesterday.Bio-diesel is a combination of diesel fuel (20 percent) and an alternativefuel (80 percent) produced from the reaction between natural vegetableproducts ingredients like rice, vegetable oil, soybean oil and alcohol.The ministry passed a bill on May 25 allowing the testing of bio- diesel(BD20) fuel. According to the bill, a district can be designated as a testregion at the request of the Minister of Environment and the heads of acity.The testing will begin in the landfill areas within the metropolitandistricts with the fuel used for cleaning and garbage disposal vehicles.The initial testing period is through May 24, 2004.The first company to request a permit to sell the alternative fuel was LGCaltex and the ministry is currently evaluating the firm's proposal, itsaid. If permitted, LG will set up the bio-diesel gas station inDanha-dong in Incheon city."A bio-diesel gas station must be equipped with a specifically designedstorage tank and gas pump. We haven't yet decided on the price of BD20,but it will be cheaper than the regular diesel fuel,"a ministry officialsaid.

JOHOR BAHARU, May 24 (Bernama) -- The Palm Kernel based Oleochemicalsub-sector needs to be developed and expanded to give added value to thepalm oil industry and enhance its comptitiveness, Johor Menteri BesarDatuk Abdul Ghani Othman said today.He said the palm loil based sub-sector was one of the industries with bigpotential in Malaysia and particularly in Johor which was the biggestproducer of palm oil in the country."In the area of palm oil production, Malaysia is facing tough competitionfrom other producer nations particularly from the aspect of productioncost,"he said when opening the Palm Oil Carnival organised by theMalaysian Palm Oil Promotion Council (MPOPC) here.He said with advances in palm oil technology, development and research,Malaysia could emerge as the foremost nation in the field of oleochemicalwhich had many advantages compared to other vegetable oils.Some 640,000 hectares in Johor were planted with oil palm and thisrepresented about 18 per cent of the total area under oil palm inMalaysia, he said.The Menteri Besari said the development of the oleochemical sub sectorwould bring immense benefits to settlers and smallholders in Johor.Speaking to the press after the opening, Abdul Ghani said the MPOPC andother related government agencies should intensify the campaign to promotepalm oil from the health aspect among consumers.Accurate information could drown the claims made by anti-palm oillobbyists campaigning for other vegetable oils, he added.The carnival at Plaza City Square, which ends on Sunday, is aimed atenlightening consumers including Singaporeans on the benefits of palm oil.

5/22/2002 (Soyatech) - Boustead Holdings Bhd plans to sell the plantationinformation management system (PIMS) it has developed with ComputerSystems Advisers (M) Bhd (CSA) in South-East Asia by next year.According to Boustead manufacturing and corporate planning director KooHock Fee, both companies have started marketing the PIMS in severalforeign markets.He said that the system helped plantation companies to achieve betterreturns on investment, increase productivity and enabled fastertime-to-market."There is huge potential for PIMS in countries such as Thailand, thePhilippines, Burma and Papua New Guinea. However, we plan to focus onMalaysia and Indonesia this year, Koo said."Probably, next year, we will start to seriously look at the other exportmarkets," he said.Koo told a press conference this after a seminar on Smart Links toPlantation Management in Kuala Lumpur yesterday. The seminar was followedby the launch of PIMS.According to CSA managing director Chuah Tai Eu, the PIMS was developedbased on the combined plantation management systems already own by CSA andBousteadís wholly-owned subsi-diary Boustead Information Technology SdnBhd."The PIMS combines the software development expertise of CSA with theplantation industry expertise of Boustead," he said.Chuah said that CSAís older system, the plantation management informationsystem (PMIS), was launched in 1985.He said that Boustead introduced its plantation management system (PMS),which was now being used by 100 of its estates, about 20 years ago.Chuah said that CSA and Boustead had each contributed about RM1mil tointegrate the 2 systems into the PIMS."So far, we have installed and successfully tested PIMS at 2 estates, with13 more estates in the process of installation," he said."With improving crude palm oil prices and anticipated higher overseasdemand, plantation companies can expect an encouraging but challengingyear ahead. This is the most opportune time for us to introduce a new andenhanced system that catalyses the forward momentum of the plantationindustry," Chuah said.Koo said Boustead planned to install PIMS, which was developed on thelatest Microsoft technology, at its 400 estates in Malaysia and Indonesiasoon. Chuah said CSA's older system PMIS had been installed at about 50estates nationwide."We expect all these estates to upgrade to the PIMS," he said.

5/22/2002 (Soyatech)- Abstract: An adjuvant containing: (a) amonoglyceride; and (b) a component selected from the group consisting ofnonionic surfactants, anionic surfactants, cationic surfactants, alkylesters, phytobland mineral oils, water soluble silicone surfactants, fattyacid dialkyl ethers, fatty acid dialkyl carbonates, vegetable oils, andmixtures thereof.Ex Claim Text: A pesticide composition comprising: (a) from about 1 toabout 99% by weight, based on the weight of the composition, of anadjuvant containing: (i) a coconut monoglyceride sulfate; and (ii) acomponent selected from the group consisting of nonionic surfactants,anionic surfactants, cationic surfactants, allyl esters, phytoblandmineral oils, water soluble silicone surfactants, fatty acid dialkylethers, fatty acid dialkyl carbonates, vegetable oils, and mixturesthereof; and (b) a biologically active ingredient used for treating plantsand plant pests.

PORT DICKSON, May 20 (Bernama) -- Guthrie Bhd is confident of achievingthe group's 2525 vision soon, said group chief executive Tan Sri AbdulKhalid Ibrahim.

MUMBAI, May 15. (Financial Times Limited) - THE Agriculture Minister, MrAjit Singh's flip-flop over restrictions on import of soyabean oilproduced out of genetically-modified (GM) soyabean has evoked a wide rangeof reaction- from cynicism to ridicule on the one hand and praise on theother- in the vegetable oil industry and trade circles.From a very strident stand on the subject taken in the last couple ofmonths, the minister now seems to have considerably diluted his views onthe desirability of imposing restrictions. He now holds that it istechnically not feasible to distinguish soyabean oil from GM and non-GMsources, leading to conclusion that he has given up his initial aggressivestand. Business circles are wondering about the reasons for change ofstance.An official in the Ministry of Health recently confirmed that work oncomprehensive legislation for labelling of GM products was going on andthat it would perhaps take a few months before the law is finalised giventhe fact that a wide range of imported agricultural products (both bulkand processed) are from GM sources.Mr. Ajit Singh's statement in the Lok Sabha on Monday that it was notpossible to distinguish between GM and non-GM soyabean oil by availableanalytical methods has brought cheer among importers of edible oil. Largequantities of soyabean oil from Argentina have been contracted for and theconsignments are expected to arrive at regular intervals in the comingmonths. Welcoming the minister's statement, Mr D.N. Pathak, ExecutiveDirector of Indian Vegetable Oil Processors Association told BusinessLine, "I am happy our stand is vindicated. We had represented to thegovernment that technically it was not feasible to test soyabean oil forGM traits. Imports can now continue without avoidable uncertainties".The solvent extraction industry which had been vocal in its opposition tolarge-scale edible oil imports did not extend support to the proposedrestriction on soyabean oil on the ground that imports helped a largenumber of its members utilise their refining capacity.Also, apprehensions were expressed that any move to restrict low-pricedlow-duty soyaoil would immediately benefit palm oil, and producers inMalaysia would take undue advantage of the situation by jacking up prices.Logically, restriction on imported soyabean oil should benefit domesticsoyabean producers; but none of the organisations representing farmers'interests even thought it fit to react.Interestingly, a processing industry representative pointed out that thepurpose of imposing restriction, namely an increase in local prices ofedible oils in general, had been achieved over the last several weeks evenunder the existing liberal policy and therefore, the proposed restrictioneven if not implemented would not hurt anyone.There are, however, voices of dissent and despair. A senior representativeof the vegetable oil sector, on condition of anonymity, expressed dismayat the way trade and industry bodies shifted their stand on short-termconsiderations."A strong case has been made out for negotiating an upward revision in theWTO-bound low rate of 45 per cent customs duty on soyabean oil. We couldlose out if the opportunity is not utilised. It is up to the industry andtrade as a whole to take the matter forward in a constructive way," hesaid.

KUALA LUMPUR, May 21 (Reuters) - Main edible oil consumers, such as India,China and Pakistan, still favour palm oil because of higher soyoil pricesdespite harvests in Argentina, traders said on Tuesday.South American crude, degummed soyoil was last quoted at $623.50 atonne for June shipment C&F India after tax against $586 for crude palmoil (CPO). India, the world's largest edible oil importer, buys palm oilfrom Malaysia and Indonesia."If anyone has to make a choice today, obviously they would prefer tobuy CPO," said one trader in Kuala Lumpur.India's falling domestic stocks, seen at around 200,000 tonnes, and aseasonal decline in the arrivals of oilseeds from the summer crop, wereexpected to boost palm oil imports to 300,000 tonnes in May, up from200,000 tonnes in April, traders said.India would be buying crude palm oil and refine the oil domesticallybecause RBD palm olein was expensive at $736 a tonne C&F India, they said.Traders said chaos in Argentina's grain market, triggered by a plan bya major farm group to halt sale of grains and oilseeds, will restrictexports from the world's third largest soybean producer after the UnitedStates and Brazil.This will encourage buyers to turn to soyoil, a direct competitor topalm oil, said traders.