MARKET DEVELOPMENT
Palm kernel-oil Imports to Hit 102,000 MT–Report
Palm kernel-oil Imports to Hit 102,000 MT–Report
05/05/2015 (Business Mirror) - The Philippines could purchase as much as 102,000 metric tons (MT) of palm kernel oil until September 30 this year, according to the latest report published by the Foreign Agricultural Service (FAS) of the US Department of Agriculture in Manila.
Citing data from the Global Trade Atlas, FAS Manila said the Philippines imported the same volume of palm kernel oil, mostly from Malaysia, in 2014.
“This level nearly quadruples the 26,000-MT palm kernel-oil import level in 2013. Post forecasts this level of imports to continue through marketing year [MY] 2015-2016 due to tightness in overall coconut-oil supplies,” the report read.
The marketing year for vegetable oils, including palm kernel oil and coconut oil (CNO), in the US starts on October 1 and ends on September 30 of the following year.
FAS Manila noted that significant CNO exports in 2014 were likely made possible by increased imports of other oils, despite declining copra output.
Local buyers usually shift to palm kernel oil if its price declines significantly.
As for CNO exports, FAS Manila projected shipments for MY 2014-2015 to reach 800,000 MT. Exports are likely to stay at this level in MY 2015-2016 due to anticipated tight copra supplies.
The Philippines exported 794,000 MT of CNO last year, lower than the 1.1 million MT (MMT) shipped out in 2013.
Meanwhile, FAS Manila said the Philippines could purchase as much as 2.41 MMT of soybean meal (SBM) from abroad for MY 2014-2015.
FAS Manila said SBM imports are forecast to reach 2.5 MMT in MY 2015-2016, driven by continued consolidation and growing sophistication of the domestic feed-consuming industries, and significant industry investment in feed grain-distribution infrastructure.
Citing multiple-industry contacts, FAS Manila also said increasing food and feed demand by the growing livestock and poultry industries, alongside rising food demand by the expanding health-conscious middle class, have resulted in imports of full fat soybeans.
Citing data from the Global Trade Atlas, FAS Manila said the Philippines imported the same volume of palm kernel oil, mostly from Malaysia, in 2014.
“This level nearly quadruples the 26,000-MT palm kernel-oil import level in 2013. Post forecasts this level of imports to continue through marketing year [MY] 2015-2016 due to tightness in overall coconut-oil supplies,” the report read.
The marketing year for vegetable oils, including palm kernel oil and coconut oil (CNO), in the US starts on October 1 and ends on September 30 of the following year.
FAS Manila noted that significant CNO exports in 2014 were likely made possible by increased imports of other oils, despite declining copra output.
Local buyers usually shift to palm kernel oil if its price declines significantly.
As for CNO exports, FAS Manila projected shipments for MY 2014-2015 to reach 800,000 MT. Exports are likely to stay at this level in MY 2015-2016 due to anticipated tight copra supplies.
The Philippines exported 794,000 MT of CNO last year, lower than the 1.1 million MT (MMT) shipped out in 2013.
Meanwhile, FAS Manila said the Philippines could purchase as much as 2.41 MMT of soybean meal (SBM) from abroad for MY 2014-2015.
FAS Manila said SBM imports are forecast to reach 2.5 MMT in MY 2015-2016, driven by continued consolidation and growing sophistication of the domestic feed-consuming industries, and significant industry investment in feed grain-distribution infrastructure.
Citing multiple-industry contacts, FAS Manila also said increasing food and feed demand by the growing livestock and poultry industries, alongside rising food demand by the expanding health-conscious middle class, have resulted in imports of full fat soybeans.