Archived News

9/7/2004, NEW DELHI (Dow Jones)--India's edible oil prices closedhigher in the week to Friday as expectations mounted on a hike in importduty on refined palm oil, which was finally announced by the government inthe federal budget on Thursday."India's edible oil prices went up in the week, and particularlysharply on Thursday after the budget announcement," said a trader.India's government increased the import duty on refined palm oil to75% from 70% earlier.India imports five million tons edible oils annually, of which 74% ispalm oil.Traders said the edible oil prices will now be keenly looking atprogress of the monsoon rains.India's monsoon rains, which is the only source of water for theoilseeds crop, has been scanty over the past few weeks, which has raisedconcerns over the production of oilseeds, such as soybean and groundnut."If rains don't take place for the next few days, prices of oilseedswill increase further," said a Delhi based trader.India's oilseeds crop is sown in June and harvested in September,while the monsoon rains take place from June to August.Friday, crude palm oil was at 37,000 rupees ($1=INR45.65) comparedwith INR36,500/ton last week. Refined palm oil was quoted at INR40,000/toncompared with INR39,500/ton last Friday.

Manila, July 8 (Dow Jones) - Philippine coconut oil exports in Junereached only 50,054 metric tons, down 41% from month-ago levels onprevailing tightness in copra supply, the United Coconut Association ofthe Philippines said Thursday.One trader said there was little trading activity in the month ofJune, due mainly to scarce export supply."Only few buyers and sellers were out in the market last month," hesaid.The export volume in July is expected to improve with an expected risein copra supply in the third quarter of the year, the trader said."We expect (copra) supply to improve by the end of July, so we mightsee a higher export volume for the month," the trader added. Copra is thedried coconut meat from which coconut oil is extracted.Copra production this year is projected to reach only 2.4 milliontons, down from last year's copra output estimate of 2.5 million tons.The projected lower copra output this year is attributed to thebiological stress of coconut trees following several years of bountifulharvests.

Sunday July 11, 2004 - THERE'S a good chance that the comfortable paddingon the chair you use every day is made from polyurethane, a chemical-basedsubstance that can be fashioned into foams with varying degrees offlexibility.

10/7/2004 - THE favourable long-term outlook of palm oil is expected toneutralise the bearish influence emerging from India’s move to raiseimport duty on refined palm oil, traders said.

7/7/2004 - Bangkok Post Toyota Motor Thailand Co has welcomed thegovernment's policy to develop biodiesel as an alternative fuel forautomobiles.

Buenos Aires, July 7 (OsterDowJones) - Argentina's government has no plansto reduce or eliminate taxes on grain and oilseed exports any time soon,the president of Argentina's biggest agricultural group said Wednesday.Argentina's Economy Ministry collects a 20% tax on corn and wheat and a23.5% tax on soybeans when these goods are shipped abroad. The taxes addan estimated six billion pesos ($1=ARS2.95) to federal coffers each year,the Argentine Rural Society says. But they cost producers as much as $660million annually in lost revenue, according to private-sector estimates."In recent meetings we've had with (Economy Minister Roberto) Lavagna, hehas disabused us of expectations that the taxes would be reduced anytimesoon," Luciano Miguens, president of the Argentine Rural Society, saidWednesday. "He has made it clear that this is not a priority." FormerPresident Eduardo Duhalde enacted the taxes in 2002 to help the governmentbalance its accounts and pay for unemployment programs amid a brutaleconomic crisis. That crisis was brought about in part by the government'sdecision to devalue its currency, which hurled the economy into a state ofconfusion and pummeled the country's banking sector. But the devaluationhas been beneficial to the agriculture sector, whose products have becomemore competitive in the global commodities market. Record soybean pricesthis year have provided a windfall for soybean farmers and farm propertyvalues have skyrocketed to all-time highs. Because of this, Argentina'sagriculture sector has an obligation to contribute more than others toboost tax revenue, Lavagna and others have reasoned in the past.

SAO PAULO (Dow Jones) - Brazil soybean export registrations for the2004-05 marketing year (February-January) moved forward to 18.35 millionmetric tons in the second half of June, according to official figuresreleased Thursday. Government figures made available by the BrazilianAssociation of Vegetable Oil Industries, or Abiove, showed registrationsof soybean exports progressed by 368,000 tons in the second 15 days of themonth and are well ahead of the 16,865 million tons registered at the samestage the previous year. Abiove forecast soybean exports will reach 20.2million tons in 2004-05, up from 19.99 million tons last year. Soymealregistrations rose in the second half of June, totaling 9.348 milliontons, up by 608,000 tons from June 15. Soymeal registrations are slightlyahead of the 8.043 million tons registered exactly one year before.Exports of meal are expected to total 15.500 million tons, according toAbiove, up from 13.577 million tons last year. Soyoil registrations stoodat 1.407 million tons, compared with 1.332 million tons last year. Soyoilexports are seen reaching 2.7 million tons in 2004-05, up from 2.40million tons the year before. Brazil is the world's largest exporter ofsoybeans and their derivatives. Brazil places no obligations to exportregistered produce.

Tripoli, Libya, July 7 (OsterDowJones) - A tender Wednesday by Egypt'sFood Industries Holding Company, or FIHC, attracted the cheapest Augustarrival sunflower oil offer from Cargill for 3,000 metric tons at $581.90per ton cost and freight, a participating trader told OsterDowJones.Bunge made the best offer for first half of September arrival soyoilat $556.02/ton C&F for 15,000 tons and Kouk made the best offer for firsthalf of August arrival palm oil at $449.50/ton C&F for 15,000 tons, theCairo-based trader said.FIHC had delayed its tender for a total of 50,000 metric tons ofvegetable oils to Wednesday instead of Tuesday due to Monday's publicholiday in the U.S.Of the total, FIHC is seeking 20,000 tons of palm oil for first halfof August arrival, 15,000 tons of soyoil for first half of September and15,000 tons of sunoil for the whole of August arrival.Cargill also made at Wednesday's tender an offer for 15,000 tons ofsunoil at $596.90/ton but the trader said FIHC was likely to take smallerparcels from several companies at a better price.After Cargill's best offer of $581.90/ton C&F, Oleo Trading was thesecond best with its offer of 6,000 tons of sunoil at $582.95/ton C&F andToepfer third with an offer for 5,000 tons of sunoil at $585/ton C&F forAugust arrival.FIHC last tendered for palm oil June 15, securing 15,000 tons of palmoil from Malaysia's Felda at $462/ton C&F for July arrival.FIHC last bought sunoil in a tender May 4, securing 18,000 tons ofsunoil from Cargill at $649.90/ton C&F for first half of June arrival.It last bought soyoil in a tender March 10, securing 20,000 tons ofsoyoil from Bunge at $677.39/ton C&F.

BEIJING (Dow Jones) - Quarantine officers in China have seized a more than57,000 metric-ton shipment of soybeans imported from the U.S., claimingthe crops are contaminated, state media reported Thursday. The seizure anddestruction of the imported soybeans in the southern city of Guangzhoufollows recent bans on South American shipments due to concerns aboutcontamination. The U.S. soybeans are infested with phytophthora sojae, anorganism responsible for soy rot, the official Xinhua News Agencyreported, citing unnamed sources with the Guangzhou Inspection andQuarantine Bureau. Soy rot is estimated to cause at least $100 million indamages to soybean crops in the U.S. each year, the report said. This isthe fifth cargo infested with the organism detected this year in thesouthern port city. Chinese quarantine authorities this year banned 23international suppliers from supplying Brazilian soybeans, after findingfungicide-tainted seeds in the cargoes they supplied. That ban was liftedon June 30.

9 July 2004 - MALAYSIA exported 4.64 million tonnes of crude palm oil(CPO) valued at RM9.28 billion between January and May this year.

KARACHI, July 8 Asia Pulse - Pakistan's food import bill this year islikely to be close to US$1.5 billion due to the import programme of onemillion tonnes of wheat, an increase in shipment of tea, spices, dryfruits and other edible items through formal import channels, and higherinternational prices of palm oil and pulses.

Kuala Lumpur, July 7 (Dow Jones) - At odds for years over environmentalissues, palm oil industry players and conservation groups have joinedhands to set standards that will dictate future production and usage ofthe commodity.Teoh Cheng Hai, secretary general of the newly formed Roundtable OnSustainable Palm Oil, or RSPO, said that in recent years, the palm oilsector has been increasingly linked to global concerns about deforestationand loss of biodiversity.In what the industry is touting as a breakthrough, major palm oilplayers and non-governmental organizations agreed late last year to putaside their differences and work together.The co-operation has yielded the RSPO, an association set up in Aprilto lead the combined efforts to promote sustainable, environmentallyfriendly development of the palm oil industry."The logic of (sustainable, environmentally friendly development ofthe industry) is slowly filtering through. We hope that with thisplatform, people can see eye-to-eye on this issue," Teoh said in aninterview."Previously, the industry and the NGOs were not talking. At least now,they are talking."The RSPO, established under Swiss law but with its secretariat in theMalaysian capital, will have members representing all segments of the palmoil supply chain, including oil palm growers, processors and traders,consumer goods manufacturers, retailers, banks and environmental NGOs.A membership drive began this month, with 13 confirmed members so farand many other players expected to follow, Teoh said. Founding members ofthe RSPO include major names such as Aarhus United UK Ltd., Unilever NV,Karlshamns AB, the Worldwide Fund for Nature, or WWF, and the MalaysianPalm Oil Association.