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CPO price forecast to climb for rest of the year
CPO FUTURES HIT TWO-YEAR HIGH ON BULLISH SENTIMENT, STRONG EXPORTS
CPO price strength could dissipate through end-2024, says BMI
Positive growth for plantation sector, amid rising CPO prices
BLACK US FARMERS DEMAND REPARATIONS FOR RACISM
WASHINGTON, Aug 22 (Reuters) - Led by dilapidated tractors and a lonemule, dozens of black farmers on Thursday marched near the U.S.Agriculture Department to demand compensation for decades of racialdiscrimination that they claim has shut them out of billions of dollars infederal subsidies."This administration has turned a deaf ear to a group of people whodeserve restitution," said John Boyd, president of the National BlackFarmers Association.The farmers, who live mostly in the South, accuse the USDA of notabiding by a 1999 landmark agreement to pay producers who werediscriminated against. In the settlement, the department promised to payat least $50,000 to each affected black farmer.However, the protesters claim few farmers have actually received theirmoney after three years of waiting."Where's our 40 acres?" Philip Haynie, a Virginia farmer, toldreporters while pulling a mule. "We just want what we are entitled to. Wedon't want handouts, just to be treated fairly."The number of black farmers in the United States has steadily dwindledin the past decades, representing about 1 percent of American producers.The protesters claim USDA officials denied their applications for billionsof dollars in farm assistance because of the color of their skin.Agriculture Secretary Ann Veneman, who was in Oregon on Thursday withPresident George W. Bush, has said the administration was committed toensuring black farmers were fairly treated.
COLOMBIA'S OUTPUT, EXPORTS OF PALM OIL FALL IN H1
BOGOTA, Colombia, Aug 11 (Reuters) - Colombia, the world's fourth-largestproducer of palm oil, produced 276,700 tonnes in the first six months of2002, down 7.1 percent against the same period last year, a top industrygroup said on Monday.Production in the first half of 2001 reached 297,800 tonnes.The National Federation of Palm Oil Producers (Fedepalma) said exportsin the January-June period reached 58,792 tonnes, down 30.9 percent fromthe 85,064 tonnes shipped in the same period last year.Fedepalma blamed lower exports on less oil extracted and what it saidwere trade restrictions imposed by Venezuela and Mexico.Fedepalma estimates Colombia will produce 580,000 tonnes of palm oilthis year, of which 144,000 tonnes would be exported.Last year, Colombia's palm oil production rose to 547,200 tonnes, up4.4 percent against the 524,000 turned out in 2000.
Defer increasing CPO sales tax: Keng Yaik
Tuesday, August 20, 2002 (The Star) - Primary industries minister DatukSeri Dr Lim Keng Yaik hopes that the Sabah state government will deferincreasing the sales tax on the sale of crude palm oil as the oil palmsector has just recovered from poor prices of the last two years.At present, Sabah charges a five percent sales tax for every 1,000 tonnesor more of CPO sold while Sarawak charges 2.5 percent for sales of between1,000 and 1,500 tonnes and five percent for sales of more than 1,500tonnes.Speaking to reporters after meeting Sabah chief minister Datuk Chong KahKiat here today, Dr Lim said he hoped that the Sabah state governmentwould reduce the tax to be equivalent to those charged by the Sarawakstate government.He said the higher sales tax would put smallholders at a disadvantagebecause state governments in Peninsular Malaysia did not impose any salestax on CPO.“Plantation companies in Sabah had just recovered after what they sufferedin the last two years and I hope they will be given time to recover beforenew additional charges are to be considered. I hope the Sabah stategovernment will listen to my appeal which I am doing on behalf of the oilpalm industry in Sabah,†he saidWith one million hectares of land suitable for oil palm cultivation inSabah, he said additional charges might make potential investors hesitantto come to the state and in turn this would affect the future developmentof the crop. – Bernama
EU PLANS TO ADVANCE AID TO GERMAN FARMERS
PARIS, Aug 22 (Reuters) - The European Union plans to allow Germanfarmers to receive hundreds of millions of euros in advanced aid tocompensate them for widespread damage caused by recent rains and flooding,EU officials said on Thursday.The decision, by the EU's grain management committee, still has to beofficially rubber-stamped by the European Commission, probably onWednesday, officials said.It will allow some 516 million euros in arable sector direct payments,due for the next 2002/2003 financial year, to be paid early.These aids are normally paid between mid-November and end-January, butnow they can be paid out between September 1 and mid-October, officialssaid.Officials said this effectively moved the money from the EU's 2002/2003budget to the current 2001/2002 budget. The EU's annual agriculture budgetruns from mid-October.
Europe rapeoil seen volatile, biodiesel demand off
AMSTERDAM, Aug 22 (Reuters) - Rapeoil prices in Europe were expected toremain volatile in the near-term as the market digests the effect ofrecent bad weather and demand from the biodiesel sector, European traderssaid on Thursday.Nearby European rapeoil has gained around 13 percent since July 25 despitea pull-back in U.S. soyoil futures. September/October was offered onThursday afternoon at 545 euros per tonne fob exmill, up five fromWednesday evening.Bad weather has forced analysts to cut forecasts for global supplies ofrapeseed this season, but Europe would still see output rise by 300,000tonnes this season to 9.2 million and still have enough to export 700,000tonnes, industry newsletter Oil World said last week.Crop damage from the weather was not as serious as first expected withGermany's harvest seen unchanged and rains not hitting France's good crop,a German trader said."The German area was up so after the lower yield the harvest should beflat. There might be less in Sweden and Poland, but with a good crop inFrance there should be enough thoughout Europe," he said.Higher rapeoil prices was dampening demand from the biodiesel sector,leaving more for the food sector, the trader added. "These prices do notcalculate for biodiesel anymore, it's getting too expensive, so I thinkthey are taking less for biodiesel," he said.
GERMAN RAPESEED MARKET SUPPORTED BY EXPORT HOPES
HAMBURG, Aug 22 (Reuters) - Germany's rapeseed prices are beingsupported by hopes of more export deals while domestic consumers aremoving in and out of the market generating good business on individualdays, traders said on Thursday."There were rumours in the German market this week that Mexico wasseeking more German rapeseed but nothing seems to have come of it yet andit remains a rumour," one trader said.In early August a major French export house sold 24,000 tonnes ofGerman rapeseed to Mexico.This was loaded this week onto a ship in the east German port ofRostock for shipment to Veracruz in Mexico, traders said.Lower rapeseed/canola output in Canada and plus an expected reductionin the U.S. soybean crop has increased international purchase interest inEuropean rapeseed.Traders said Germany's market has seen start-stop business so far thisweek with buyers moving in to take advantage of dips in prices caused byweaker prices for Chicago Board of Trade soybean levels."German mills are currently relatively subdued in their purchases, butthey have been dipping in and out of the market," one trader commented."There have been a couple of days with brisk business levels.""German mills still have a substantial supply requirement but areawaiting price developments and they are concerned about uncertain futurerape oil demand," a trader said.Purchases by producers of bio diesel vehicle fuel from rapeseed havealso been low with bio diesel sales said to remain weak.First talks about advanced sales of Germany's 2003 rapeseed crop alsotook place this week.This year's German rapeseed crop is set to fall to around 4 milliontonnes against 4.2 million tonnes but traders said the market has come toterms with this and priced it in.Rapeseed for delivery in Hamburg in August was on Thursday quoted at260 euros, up about 14 euros on the week.
OIL WORLD SEES DECLINING ASIAN PALM OIL STOCKS
HAMBURG, Aug 20 (Reuters) - Palm oil stocks in the main Asian productioncountries of Malaysia and Indonesia are likely to fall on the year betweenSeptember and the end of December 2002, Hamburg-based newsletter Oil Worldsaid.The newsletter said it is significant that recent palm oil pricestrength occurred although Malaysian and Indonesian production isincreasing seasonally."Foreign demand for Malaysian and Indonesian palm oil is high and as aresult of insufficient production, palm oil stocks in Malaysia andIndonesia will decline below the year-ago level as of end September aswell as until end-December 2002," it said."Average palm oil yields are expected to be down from last year inMalaysia and Indonesia partly due to a decline in the biological yieldcycle following the (palm tree) stress resulting from high production inthe last two years."Other factors cutting output are recent dryness in several productionregions and Malaysia's replanting programme which involved 150,000 oldtrees being cut down up to the end of June this year, it added.
PHILIPPINES SAYS SEES COCONUT OIL PRICE SPIKE
MANILA, Aug 22 (Reuters) - The Philippines said on Thursday it expectsprices of coconut oil in the world market to hit $500 per tonne CIF withan anticipated decline in production output in the country, the world'slargest shipper of the commodity.Danilo Coronacion, administrator of the Philippine Coconut Authority,told reporters that output of copra, or dried coconut flesh from which oilis extracted, is expected to fall to 2.3 million tonnes this year from2.85 million tonnes in 2001.Copra output would fall further to 1.5 million tonnes in 2003."There is a possibility it (coconut oil) might hit $500/tonne CIF dueto anticipated low production in the Philippines, global shortage insupply of fats and oil, and the anticipated decrease in supply in palmoil," Coronacion said.Coconut oil was quoted at $442.50/tonne CIF in Europe as of Wednesday.Analysts have said coconut trees produce smaller and fewer nuts aftertwo years of good output.
Indonesia eyes India for palm oil exports
08/19/2002(Financial Times Information Limited) - Indonesia expects toexport five million tonnes of crude palm oil (CPO) during `02, of which1.4m tonnes to India alone, the largest edible oil importer in the world."Indonesia is expected to produce 8.5 to nine million tonnes of CPO duringthe current year,'' said the Solvent Extractors' Association of Indiapresident Bipin Patel, who led a 19-member delegation to that countryearly this month.Last year, the total area covered under palm plantations in Indonesia was3.5m hectares, however, the total land available for palm cultivation isover 12m hectares.There is no agriculture land ceiling Act and an individual or company canhold as much land as it desires. "Indonesian government encourages 100%foreign investments in palm plantations,'' Patel said.There are hundreds of small islands in Indonesia having palm plantations.Fruit bunch, after cutting from the tree required to be processedimmediately, otherwise the quality of oil deteriorates.The delegation introduced the technology developed by India underTMO&P/CSIR programme and conveyed that India is in a position to supplysmall palm oil mills of 5 to 15 tonnes Fresh Fruit Bunches (FFB) per hourcapacity, which can be installed in the remote islands for quickprocessing of FFB."Indonesians particularly the small planters have shown keen interest forknow-how of palm oil mills,'' he added.Meanwhile, Globoil India -- India's premier international conference andexhibition on vegetable oil, feed and feed ingredients, oilseeds, relatedindustries and services, is taking place in Mumbai on September 22 and 23,`02.
