Chinese palm oil intake is expected to increase to 3.3 million tonnes in2003/04 from 3.1 million in the previous year, boosted by a shortage ofdomestic oils and improved economy according to a Chinese industryofficial. The domestic market will move into a peak season for palm oilconsumption at the begininning of May, 2004, thereafter, palm oil pricesare expected to edge up. Demand is expected to decline from September orOctober before rebounding again in December, 2004. Chinese demand forimported oils and oilseeds will also remain strong in 2003/04, with totaledible oils availability expect to reach 18.4 million tonnes compared with17.7 million tonnes in 2002/03. Prices on the domestic market and theinternational market have reached highs in recent years amid mountingrisks, therefore China, P.R. will import edible oils more prudently.

REUTERS04/03/04