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INDONESIA TARGETS 750,000 T PALM OIL SALE TO CHINA
JAKARTA, April 8 (Reuters) - Indonesia hopes to supply at least 750,000tonnes of palm oil to China this year following Beijing's increased importquota, a senior agriculture ministry official said on Monday.China has increased its import quota for palm oil to 2.4 million tonnesin 2002 from 1.4 million tonnes last year, following its entry into theWorld Trade Organisation (WTO)."There's a huge increase in Chinese demand for palm oil, reflected bythe increased quota. We are targeting to sell at least 750,000 tonnes toChina this year," Director General of Agriculture Products DevelopmentIskandar Andi Nuhung told reporters.Indonesia is the world's second largest palm oil producer afterMalaysia.Indonesia's exported 430,000 tonnes of palm oil to China in 2001,Nuhung said.China imposes quotas on edible oils to limit imports.Last week, China said it had issued the bulk of private firms' low dutyfarm import quotas including those for corn, wheat and edible oils.Nuhung said a number of Chinese palm oil importers would visitIndonesia soon to meet their suppliers and study the palm oil industryhere.President Megawati Sukarnoputri asked China to open its market to moreIndonesian palm oil products when she visited Beijing last month, headded.
Ministry hails counter-trade arrangements for palm
09 April 2002 (Business Times) - THE PRIMARY Industries Ministry welcomesany counter-trade arrangements involving palm oil as it will help boostuptake of the commodity as well as enhance its standing overseas.“The ministry is more than willing to play its part in facilitating theinitiative as it will help penetrate new markets,†its minister Datuk SeriDr Lim Keng Yaik told reporters in Kuala Lumpur yesterday.Dr Lim had earlier addressed staff of his ministry during its monthlygathering and distributed pledge of allegiance “Aku Janji†certificates tothem.Prime Minister Datuk Seri Dr Mahathir Mohamad had said last month thatMalaysia may partly pay the purchase of Poland’s PT-91 battle tanks in theform of palm oil.The counter trade of palm oil and palm oil products is not new forMalaysia as several arrangements had been made in the past.In 1994, Malaysia bought 18 MiG-29 Fulcrum fighter jets for a total ofUS$600 billion (US$1 = RM3.80) under an offset programme.It involved a cash payment of US$450 million, palm oil and palm oilproducts (US$95 million) and supply of other Malaysian products (US$55million).In October last year, US multinational, General Electric International,signed a US$60 million agreement with Keretapi Tanah Melayu Bhd (KTM)involving the purchase of 20 high-powered “Blue Tigerâ€.Under the deal, the locomotives are to be delivered beginning April 2003in exchange for 200,000 tonnes of palm oil and palm oil products valued atUS$60 million, to be delivered by the Pasir Gudang Edible Oils Group.The Government is also eyeing fighter jets from both the US and Russia, ofwhich Dr Lim had said last year that he attempted to squeeze at least 20per cent of the payment to be in the form of palm oil.Malaysia had also in May last year endorsed the participation of bothIndia and China in the double-tracking project which comes under a RM12billion counter-trade programme to promote demand for palm oil.The counter trade will see the delivery of around eight million tonnes ofpalm oil over a period of between five and six years to each country.Under the programme, India and China will undertake double-tracking workswhich involve the payment for rail contracts in crude palm oil.“Even though, the counter trade idea was suggested two years ago I hopethat the Transport Ministry and KTM would not have forgotten about it bynow.“The initiative can help the country’s economy as well as boost income ofsmallholders,†said Dr Lim.
Palm Oil Production To Slow Down, Stocks Decline I
KUALA LUMPUR, April 4 (Bernama) -- A major change is shaping up for palmoil as the growth in the commodity's production is slowing downconsiderably and global stocks seem likely to decline sharply.
Re: China’s CPO purchases prove disappointing
NOTE: CPO mentioned in first para. is Palm Oil (PO) and not crude palmOil (CPO). 300,000 tonnes is refer to allocation allowed so far by Chinato exporters of palm oil. Malaysian exports to China from Jan. to Feb. isonly 109,984 tonnes.
Vegetable Oil Prices Yet To Recover
KUALA LUMPUR, April 4 (Bernama) -- Prices of soya oil and palm oil havenot shown the anticipated recovery since early January despite theprospective decline in stocks and tightening supplies.
China to enter palm oil market this month
05 April 2002 (Business Times) - CHINA will enter Malaysia’s palm oilmarket by end-April as its agriculture sector will no longer be able tocope with strong domestic demand.Hamburg-based Oil World editor Thomas Mielke said China will open itsdoors and start importing within the next four to six weeks.“Oil World’s assessment is that the current restrictive import policy ofChina cannot be sustained because demand is so strong,†Mielke toldreporters in Selangor yesterday.Mielke had earlier given a talk on the commodity’s outlook, organisedunder the programme advisory committee (PAC) seminars.PAC comprises international and local experts of the world’s 17 edibleoils and fats. It advises the Malaysian palm oil sector on the next bestcourse of action.“The satisfaction of demand for oils and oil meals will make it necessaryfor China to change import policy anytime soon,†said Mielke.China, Malaysia’s third biggest buyer last year at 1.28 million tonnes haspledged to buy 2.4 million tonnes of palm oil following its formal entryinto the World Trade Organisation on December 12 last year.The amount is higher by one million tonnes from its traditional annualpurchase of 1.4 million tonnes.The industry had speculated that China would initiate its palm oilpurchase following the expansion of its import volume.Traders have widely speculated that China would start its buying spree asearly as January, a move that was not made till yesterday.China’s State Development and Planning Commission was supposed to announceabout 10 authorised importers from the private sector by March 7., but hasyet to do so.“The temporary interruption of imports was because the Chinese Governmentwants to raise domestic prices so that farmers will plant larger acreageof oil seed crops this spring (April and May),†said Mielke.He added that the move has worked so far as prices have increased in Chinaand farmers have responded positively to the Government’s policy ofpromoting domestic production.“But China’s agriculture sector is by no means in a position to satisfy agrowing domestic demand base.â€He said it is difficult for domestic production to keep pace with demandin the medium and longer term as China’s import dependance on oilseeds,oils and oilmeals will rise.“So the interruption in announcing the quota is temporary to raisedomestic prices,†said Mielke.Industry observers had said last month that the delay was partly anindirect trade reprisal on the US for raising steel tariffs to 30 percent.The US is a major producer of soyabean oil and has interests in otherproducing countries such as Argentina and Brazil.The reprisal against soyabean oil has inadvertently affected palm oil aswell.Meanwhile, a trader said that China was already in the market but did notwant to make it official to benefit from the current low prices.“By announcing its intention to come into the market, palm oil prices willno doubt rally,†said a trader.At the Malaysia Derivatives Exchange yesterday, the benchmark third-monthJune delivery closed RM2 lower at RM1,155 a tonne.April, May and July deliveries each closed RM2 lower at RM1,145, RM1,149and RM1,157 a tonne respectively.Volume eased 568 lots to 1,506, while open positions gained 151 contractsto close at 10,834.
CPO may trade at premium to soya oil soon on outpu
05 April 2002 (Business Times) - PALM oil (CPO) prices may be at a premiumover its rival soyabean oil in the near term as the former is expected toface a decline in production by the year-end.Hamburg-based Oil World editor Thomas Mielke said it is possible that palmoil would trade at a premium to soyabean oil in the near to medium term asMarch stock is already lower than a year ago.“The monthly production data for March this year will probably be lowerthan March last year, and this will be an important factor that couldtemporarily lift palm oil prices above soyabean oil,†Mielke toldreporters on the sidelines of a palm oil seminar in Selangor yesterday.According to the Malaysian Palm Oil Board (MPOB), closing stock forFebruary was at 1.28 million tonnes, or a 14.1 per cent drop from 1.49million tonnes in the same month last year.Production in February declined to 773,341 tonnes, or a 13 per cent dropfrom 888,767 tonnes in the same month last year.The MPOB will release official production, stockpile and export figures byApril 12.Most industry observers said early this year that Malaysia’s palm oilproduction was expected to decline to around 11.5 million tonnes by theyear-end from 11.8 million tonnes last year because of tree fatigue.“The tightness in the oils and fats balance resembles that in 1997-98 whenMalaysia’s palm oil was sold at US$632 (US$1 = RM3.80) a tonne andArgentina’s soyabean oil was at US$617,†said Mielke.He added that weather developments will be of particular importance,noting that a moderate El Nino is developing and has begun to be felt inSouth-East Asia.“Unusually dry conditions since December or January are affecting palm andlauric oil production in Malaysia and parts of the Philippines,†saidMielke.Generally, palm oil has traded at a discount of between US$60 and US$100over the years.For example, Rotterdam palm oil price carriage, insurance and freight ofUS$300 a tonne will be at a discount of US$100 should soyabean be pricedat US$400 a tonne.This discount usually varies between US$60 and US$80 depending on soyabeanand palm oil prices, which fluctuate according to market demand.Industry observers have always maintained that the discount should benarrowed to between US$30 and US$40 and that being at a premium is notalways good for producers.“Should palm oil prices be at a premium naturally, buyers would opt forcheaper oils which in this case is not palm oil,†a trader said.Mielke said having palm oil prices at a premium over soyabean oil wouldnot be the first time as the former has been trading at a premium wheneverthere is a shortage in Malaysia.“Palm oil and soyabean oil have considerable rally potential for theremainder of the season as some key fundamentals show that the world’s 17edible oils and fats supply and demand outlook is tighter than currentprices suggest, said Mielke.Mielke said a sizeable slowing down of the growth in world consumption ofthe world’s edible oils will decline sharply by about 1.3 million thisseason.Malaysia is the world’s biggest producer at 11.80 million tonnes last yearof which 10.59 million tonnes were exported to 140 countries.
OIL WORLD WEEKLY - Highlights
28 March 2002 (OIL WORLD WEEKLY). Today’s US planting intentions report shows a surprising decline in thisyear’s soybean area to only 73.0 million acres, down by 1.6 Mn fromaverage expectations and down by 1.1 Mn acres from last year. This pluslower March 1 US soybean stocks should support prices in the near tomedium term.
PERANGKAAN RASMI MPOB BAGI INDUSTRI SAWIT MALAYSIA
Sebagai sebuah badan penyelidikan dan pembangunan serta pelesenan danpemantauan, MPOB sangat aktif dalam menyedia dan membentang kertaskerjadan laporan, sama ada di dalam dan di luar negeri berhubung industri sawitMalaysia. Dengan itu penyelarasan perangkaan dalam semua laporan-laporanyang dikeluarkan oleh MPOB sangatlah penting.
