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Malaysia's palm oil stocks hit 8-month high in May as output jumps
FGV may see earnings fall over 50pct annually from expanded SST
CIMB: India's duty cut, low stocks seen boosting Malaysian palm oil exports
Palm Oil Market Set for Strong Growth to USD 106.5 Billion by 2032 Amid Rising Sustainability Focus
USDA ATTACHE SEES RISING INDONEDSIA PALM OIL OUTPU
WASHINGTON, Nov 5 (Reuters) - The U.S. Agriculture Department's attache inJakarta released the following report, dated October 31, on the palm oiloutlook for Indonesia.
CHINA TO BUILD MAJOR OILSEED PROCESSING PLANT
SHANGHAI, Nov 6 (Reuters) - China said on Wednesday it will set upAsia's biggest oilseed processing plant in the country's west with a unitof a Singapore firm. "The project is an investment of $48 million and theplant will be able to process 6,000 tonnes of oilseeds including soy,palm, rapeseed and grains daily," China's foreign trade ministry said in astatement posted on its Web site www.moftec.gov.cn.Great Wall Investment Co, a unit of a Singapore firm identified inChinese as the "Fanlian Group", has signed an agreement with the Fulingdistrict government of the Chongqing municipality to set up Xinfu FoodCompany, it said.Half of the investment would be poured into the first phase of theproject, which will take 14 months to build, it said.When the second phase is complete, the joint venture would rake inannual sales of 4.82 billion yuan ($582.3 million) and tax revenues of 770million yuan, the statement said.
Felda: 'Come to us first, don't go to court'
TANAH MERAH, Nov 10 (NSPT) - Felda settlers embroiled in disputes withthe management of their land schemes are advised not to use the court tosettle problems.Felda chairman Tan Sri Dr Yusof Noor said the problems could be dealt withusing existing regulations, formulated to protect the interest and welfareof the settlers."While Felda will look into their problem, the settlers cannot expect theproblems to be solved overnight," he said, adding that Felda had to lookinto the root of the problem.However, once a case is in court, Felda can no longer help."It has to be left to the court to decide, he said after a meeting withFelda Kemahang 3 settlers here.Present were National Economic Action Council executive director DatukMustapa Mohamed, Felda deputy director-general Khamis Mat Som, andKelantan Felda chief Roslan Ali.On Sept 22, 354 Felda Kemahang 3 settlers filed a suit against Felda andtwo others for allegedly cheating them over the quality of their oil palmfruits, causing them to suffer losses since 1995.Felda Kemahang 3 manager Ibrahim Ismail and Felda Palm Industries Sdn Bhdhave been named the second and third defendant respectively.The settlers claimed that they discovered fraud and/or conspiracy in thetransactions of the palm oil fruits by the second defendant and/or thefirst defendant to the third defendant on their behalf in Sept 2001.Yusof said even without going to court, Felda would still take actionagainst the management of any land schemes if the officers committedwrongdoings."The officers are governed by regulations," he said.
INDIA'S 2002/03 EDIBLE OIL IMPORTS TO GROW
NEW DELHI, Nov 10 (Reuters)- India, the world's largest edible oilbuyer, is likely to import nearly a million tonnes more vegetable oils in2002/03, with poor monsoon rains leading to a lower domestic oilseed crop,a senior industry official said on Sunday."The total vegetable oil imports in 2002/03 (November-October) shouldbe around 5.7 million tonnes against an estimated 4.7 million tonnes in2001/02," B V Mehta, executive director of the Solvent Extractor'sAssociation of India, told Reuters on the sidelines of a convention onoilseeds.Mehta said the edible oil imports were bound to rise, looking at thisyear's oilseeds crop, which has been hit by insufficient rain."The winter crop is likely to be lower by about two million tonnes,while the summer crop could be down by about 0.8 million," Mehta said,adding that a near 3 million tonne drop in oilseed output will translateto about a million tonnes fall in oil production.The winter crop is sown in June, and harvesting starts in October, butthe production is accounted for in November when crushing begins in thenew oil year.The summer crop is sown in November and harvested in March.India's four-month monsoon rains arrived in the southern coast on timein June, but the crucial month of July was dry in most oilseed-growingregions of the country.The country gets 80 percent of rainfall from the southwest monsoon.India mainly imports palm oil from Indonesia and Malaysia and soft oilslike soyoil from the U.S., Argentina and Brazil.Mehta said the only way for India to meet its growing demand for edibleoils was by easing the import of oilseeds."The industry has been demanding a reduction in import duty on oilseedsto 15 percent from the current 30 percent and simplification in customsprocedures," Mehta said.Under current rules India carries out its own quarantine checks beforeallowing in oilseeds, a procedure which industry officials say can take upto two months.
INDIA TO ASK WTO TO RATIONALISE VEG OIL DUTIES
NEW DELHI, Nov 10 (Reuters) - India plans to propose to the World TradeOrganisation (WTO) that the world trade body rationalise its import tariffceiling on vegetable oils, farm minister Ajit Singh said on Sunday.WTO regulations permit India, the world's largest byer of vegetableoils, to levy customs duty up to 300 percent on all vegetable oils,barring soybean oil where the limit is 45 percent.India buys palm oils mostly from Malaysia and Indonesia and soy oilfrom Argentina, Brazil and the United States.The country imports nearly half its annual requirement of edible oilsof around 10 million tonnes. It imposes a basic import duty of 85 percenton refined oils, 65 percent on crude palm oil and 45 percent on soybeanoil."Except soybean oil, the bound rate on vegetable oils has been at ahigh level of 300 percent," Singh told an oilseeds convention."Why can't we increase soybean oil (bound rates) a little bit andreduce bound rates from 300 percent on other oils."Bound rate is the ceiling beyond which WTO members cannot impose importduty on a particular commodity.Singh said there was no reason for this discrepancy and thegovernmentwould put its views to the WTO during the next round of talks onagriculture.He said India would not, in any event, use this high bound rate of 300percent on edible oils and it could be cut."There is a lot of give and take at the WTO. We have to give our viewsto it on various issues by November 18," Singh said.Singh said the industry and the consumer were comfortable with presentlevels of customs duties on various oils."The import duties should be at reasonable levels, but not from thepoint of view of Malaysia and Argentina, but from the level of our farmersand industry," he said.India's soy oil imports between November 2001 and October 2002 totalled1.36 million tonnes, nearly 34 percent of total imports of edible oil ofabout four million tonnes during the period. The proportion of soyoil intotal imports of edible oils was 28 percent during the correspondingyear-ago period.Malaysia, the world's largest palm oil exporter, believes Indianbuyers have been switching to soy oil imports because of lower duties, atthe expense of palm oil.Malaysian Prime Minister Mahathir Mohamad said during a visit to NewDelhi in October his country was justified in asking for the cut in importduties on palm oils since soybean oil was being imported into India at amuch lower duty.
INDONESIA PALM OIL PRODUCERS DISMISS SHORTAGE FEAR
JAKARTA, Nov 7 (Reuters) - Indonesian palm oil producers dismissed onThursday concerns over tightness in the world's second largest producer,saying there was no need to raise export taxes as domestic supply wassufficient ahead of religious holidays and the year-end.Although confirming exports have been on the rise in the past fewmonths, they said the increasing output has allowed them to ensuresufficient supply to local cooking oil processors."Yes, exports are rising, but we are still able to meet demand of anaverage 250,000 tonnes per month from cooking oil processors in Java,"Nafis Daulay, chairman of the Indonesian Edible Oils Association (AIMMI)told Reuters from Medan, the capital of main growing area North Sumatra.Daulay said Indonesia's palm oil output this year is seen rising toaround nine million tonnes, while local consumption is stagnant at aroundthree million tonnes of crude palm oil (CPO) equivalent."We have five, or even six million tonnes to be exported. Raisingexport taxes will only kill the industry. What do we have to do with theexcess stocks if we can't export them?" Daulay said.AIMMI data shows Indonesia's monthly palm oil exports have risen tobetween 550,000 and 600,000 tonnes of CPO equivalent since August from anaverage 400,000 tonnes.The government said on Wednesday it may hike export taxes on palm oilto curb exports and ensure a sufficient supply ahead of religious holidaysand year-end.Cooking oil, which in Indonesia is mostly made from palm oil, is asensitive commodity in poverty-stricken Indonesia and significantshortages can lead to social unrest.The country currently imposes a three percent tax on crude palm oil(CPO), and one percent on refined, bleached and deodorised (RBD) palm oil,RBD palm olein and crude olein.
MALAYSIA STUDIES BRAZIL PALM OIL INVESTMENT
RIO DE JANEIRO, Brazil, Nov 5 (Reuters) - Malaysia, the world's biggestpalm oil producer and exporter, is considering investing in the expansionof Brazil's palm oil industry, a Malaysian palm oil official said.Malaysia's Latin American Palm Oil Council representative IderlonAzevedo was quoted on Tuesday in Brazil's financial daily Gazeta Mercantilsaying that the investment could be similar to $100 million Malaysiainvested in Venezuala."The intention to expand Malaysian palm oil production in Brazil isclear, but the volatility of the dollar is blocking progress," Azevedosaid.Brazil's real currency depreciated about 40 percent against the dollarthis year on investor fears of a leftist victory in presidential electionson October 27.But since Workers' Party leader Luiz Inacio Lula da Silva's resoundingvictory with 61 percent of the vote, the real has regained some lostground.Azevedo estimated that Brazil produced 100,000 tonnes of palm oil butconsumed 170,000 tonnes annually, resulting in a deficit of 70,000 tonnes.Brazilian palm oil consumption needed to grow to 250,000 tonnesannually to make the Malaysian investment attractive, he said after avisit by Malaysian palm oil experts between Octobr 23 and November 2.
OIL WORLD SEES RISING PALM OIL PRICES
HAMBURG, Nov 4 (Reuters) - Palm oil prices are likely to reach 1,700 to1,800 Malaysian ringgit a tonne in the coming months because of tightsupplies of all vegetable oils and strong demand, Thomas Mielke, editor ofHamburg-based newsletter Oil World, told Reuters."We expect palm oil prices to continue to appreciate in November andDecember and probably reach 1,700 to 1,800 Malaysian ringgit a tonnesometime in January to March 2003," he said on Monday.Malaysian palm oil for January delivery was at 1,564 ringgit a tonne atFriday's close in Kuala Lumpur, where markets were closed on Monday for apublic holiday.Palm oil prices would rise on tightening world edible oils and fatssupplies and a likely decline in Malaysian palm oil production betweenOctober this year and March 2003 compared with the same period lastseason, Mielke added.The decline could be as much as 200,000 tonnes, partly because ofbelow-average rainfall.Oil World estimates global palm oil production at 25.14 million tonnesin 2002/03 (Oct-Sept), still up from 24.64 million last season.But it sees 2002/03 consumption rising strongly to 25.71 million tonnesfrom 24.68 million last season.Strong global demand means stocks in Malaysia and Indonesia, the twodominant exporters, will decline from now to March 2003, lending furtherprice support.Mielke said palm oil prices had been slower to rise than soyoil butwere likely to increase more quickly in coming months."I do not think the discount in the price of palm oil is justified," hesaid. "A further rally, probably a substantial one, is likely in palmoil."He added: "The big question is whether the market will react now oronly after confirmation that supply is slowing further."Falling soybean output in the United States and tight supply ofrapeseed and other products had left the market depending on SouthAmerican soy production.If unfavourable weather reduced the South American crop below currentestimates, the result would be rapidly tightening global oilseed supplyand rising prices.
OILWORLD SEES RECORD CHINESE EDIBLE OIL IMPORTS
HAMBURG, Nov 5 (Reuters) -China's edible oil imports - especially soyand palm oils - are set to reach record levels in the second half of 2002as domestic production cannot keep up with rising demand, Hamburg-basednewsletter Oil World said.It forecast China will import 440,000 tonnes of soyoil alone betweenOctober and December this year, up from only 52,000 tonnes in the sametime in 2001. Palm oil imports in this period will rise to 640,000 tonnesfrom 572,000 tonnes the same time a year ago."Domestic supplies have tightened and this makes it imperative to raiseimports of soybeans and oil to bridge the supply gap of other commoditiesand satisfy domestic demand," the newsletter said.It added: "As domestic demand for oils and meals continues to expand,Chinese importers will have to look for replacements such as importationof soybeans for crushing in China and imports of soya oil, palm oil andsoybean meal."China restricted imports of all genetically-modified (GM) food in Marchbut this is unlikely to stop the rise in purchases in the remaining weeksof this year. "There are more and more indications that the whole GM issuehas considerably eased," it said."Record palm and soyoil imports will therefore lead to a pronouncedbuildup of stocks at the end of December," it said."It can be expected that Chinese imports of soy and palm oils will declineto a very low level in January and probably February 2003 before theyresume their up trend for the remainder of this season."
