Boiling News & Veg Oils ,crude

Palm rises as crude oil supports veg oils
2 Jul, 2008, 1651 hrs IST

KUALA LUMPUR: Malaysian crude palm oil futures rose 1.2 per cent on Wednesday as crude oil prices hovered near record levels, bolstering vegetable oil markets from China to the US. But slowing overseas demand last month weighed on palm oil, which is about 19.3 per cent off a record high of 4,486 ringgit per tonne.

The benchmark September contract on the Bursa Malaysia Derivatives Exchange settled up 41 ringgit at 3,616 ringgit ($1,105). "The spread between soyoil and palm oil is widening and although there is no additional demand coming in, this places palm oil in a good position when traditional buyers start coming in," said a trader with a foreign brokerage.

Refined palm oil products at Rotterdam retailed between $1,190 and $1,277 per tonne, up to a 25 per cent discount to degummed soyoil, Reuters estimates showed.

A couple of months ago, the discount was about 18-20 per cent, traders said. Traders expect countries from China to Pakistan to start buying palm oil, which is used as a cooking oil, at least two months ahead of the Asian festival season that begins in September.

Other traded months rose between 27 and 59 ringgit. Overall trade dropped to 6,805 lots of 25 tonnes each from the usual 10,000 lots. "The market is also on a technical rebound and US soyoil futures have helped on account of crude oil," said another trader. "But rising stockpiles are still a concern especially with the current trend for demand."

Traders expect Malaysia's end-June palm oil stocks to reach 2.1 million tonnes from 1.9 million at end-May. Oil rose towards $142 a barrel on Wednesday, within sight of a record high, boosted by forecasts that global supply will lag demand and further weakness in the dollar.

US soyoil futures mostly extended gains in Asia on Wednesday amid worries about a drop in US soybean stocks to near record lows and strength in crude oil markets.

In Malaysia's physical market, crude palm oil for July shipment in the southern region was quoted at 3,610/3,620 ringgit a tonne. Trades were done between 3,580 and 3,620 ringgit.

Crude Palm Oil (CPO) Futures Prices (Hourly)
The Chart and table below show the latest Crude Palm Oil (CPO) Futures prices, as traded on the Bursa Malaysia Derivitives Exchange.



First trading session: Weekdays 10:30 a.m. to 12:30 p.m
Second trading session: Weekdays 3:00 p.m. to 6:00 p.m
Current Malaysian local time: 9:58:52 PM Sun, July 13th 2008


1 USD = 3.2680 MYR Updated: 9:00:21 PM Sun, July 13th 2008
Month Open High Low Last Sett.p Change Volume O.P
Jul 2008 3,487 3,539 3,487 3,539 3,540 -1 91 578
Aug 2008 3,502 3,571 3,502 3,565 3,565 - 1 5,839
Sep 2008 3,519 3,582 3,510 3,575 3,575 - 6 17,695
Oct 2008 3,521 3,589 3,520 3,587 3,587 - 3 8,721
Nov 2008 3,566 3,580 3,565 3,580 3,593 -13 72 3,703
Dec 2008 3,600 3,600 3,600 3,600 3,585 15 1 370
Jan 2009 3,583 3,583 3,583 3,583 3,587 -4 1 2,593
Mar 2009 3,575 3,575 3,575 3,575 3,550 25 30 1,125
May 2009 - - - - 3,570 - - 1,214
Jul 2009 - - - - 3,565 - - 1,878
Sep 2009 - - - - 3,557 - - 816
Nov 2009 - - - - 3,533 - - 320
Jan 2010 - - - - 3,500 - - 721
Mar 2010 - - - - 3,511 - - 137
May 2010 - - - - 3,484 - - 1,200

400000 oil palm smallholders in Malaysia to benefit from levy exemption

KUCHING: Plantation Industries and Commodities Minister Datuk Peter Chin welcomed the news that oil palm smallholders with plantations of 40ha and below would be exempted from paying windfall profit levy, saying an estimated 400,000 smallholders throughout the country would benefit from the exemption.

"This is good news for smallholders because they say their costs have increased. (The cost of) their fertiliser, insecticide and pesticide has increased and their labour costs have also increased,” he said.

Chin was responding to Second Finance Minister Tan Sri Nor Mohamed Yakcop’s announcement on Friday.

Chin said the Cabinet decided to grant the exemption in response to appeals by oil palm smallholders, many of whom had written to his ministry or to the Finance Ministry on the matter.

Chin was speaking to reporters Saturday after attending a Sarawak United People's Party (SUPP) central working committee meeting here.

He said, however, that bigger companies with more than 40ha of oil palm land would have to pay the windfall tax as they had the volume and could make a profit.

He also said the windfall tax would be imposed when the price of crude palm oil (CPO) rose above RM2,000 per tonne.

He said the tax rate was 7.5% for companies in Sabah and Sarawak and 15% in Peninsular Malaysia.

"For example, if the price of CPO is RM3,500 per tonne, the excess of RM1,500 above RM2,000 would be taxed at 7.5% for Sabah and Sarawak and 15% in Peninsular Malaysia," he explained.

Brazilian president says speculators, not biofuels, to blame for soaring food prices


2008-07-12 10:31:06 -


JAKARTA, Indonesia (AP) - Biofuel production is not to blame for soaring global food costs, Brazil's president said Saturday, calling for incentives for developing countries to grow food crops as a way out of the crisis.
«Ethanol for biofuel production is not the villain that threatens food security,» Luiz Inacio Lula da Silva said in Indonesia after meeting President Susilo Bambang Yudhoyono.
Both Brazil and Indonesia are major growers of crops that are used for biofuel production.
Fuels made from sugar cane, corn and other crops have been seen as a way to combat climate change and rising oil prices. Last year, the European Union endorsed a plan calling for biofuels to make up 10 percent of the fuel for road vehicles by 2020.
But environmentalists, international groups and some countries are becoming increasingly wary of so-called «green fuels,» which they say could accelerate global warming by encouraging deforestation for plantations _ at the same time further increasing commodity prices by taking land used for food production.
Experts say prices of corn, wheat, rice, soybeans and other food products have soared over the last year due to a complex mixture of factors, including high oil prices, changing diets, expanding populations, growth in biofuel production and speculation.
Silva singled out speculation as the major cause of the current crisis and said China was also being unfairly blamed. He called for incentives for poor countries to increasing food production as a way to bring down prices. He gave no more details.
Indonesia is hoping to make biofuel production, mostly from palm oil, a centerpiece of its economic development. Foreign and local companies have invested millions of dollars in new plantations and processing plants.
Yudhoyono said the government would send a team of experts to Brazil to learn more about biofuel production.

Crude palm oil up on better offtake
12 Jul, 2008, 1319 hrs

NEW DELHI: Crude palm oil prices gained Rs 20 a quintal in the national capital on fresh buying by stockists influenced by firm global trend.

In the edible section, crude palm oil (ex-kandla) rose by Rs 20 to Rs 5,100 on fresh buying.

Traders said increased buying by stockists in line with firming global trend mainly pushed up crude palm oil prices.

A firming trend in Malaysian markets pushed up palm oil in global markets near to record levels. The oil, which normally used for cooking, often used to produce bio-fuel and a record rise in crude oil boosted its demand.

Vegetable oil prices set to stay high, US warns

12/06/2008- Vegetable oil prices are expected to remain high into the coming 2008/09 season as surging demand from the developing world outpaces production, predicts the US agriculture department.

In a statement released this week, the department said prices will "likely remain above historic averages" during 2008/09 as global stocks fall by 1 per cent.

Prices for all vegetable oils have double or tripled over the last 18 months as supplies dropped due to weather conditions and other factors. But some governments have also imposed restrictions or bans on exports of oils to protect domestic food prices. China plans to stop refunding export taxes levied on some types of vegetable oil from the end of this week in a move to stabilize prices at home.

In 2008/09, supply of the major food use oils will increase however, as farmers respond to high prices by increasing plantings. Sunflower oil production is set to increase to 11.3 million tons in the coming 2008/09 season, a rise of more than 15 per cent on this year's output, according to the USDA report.

But the USDA warns that although higher production of soy oil, sunflowerseed oil, and palm oil "will help mitigate upward price pressure…[it] likely will not be enough to push prices down to historic levels".

Developing countries, such as China and India, are seeing strong annual increase in demand for vegetable oils, pushing global consumption to record highs. China, already the world's biggest vegetable oil consumer, is set to increase its consumption for several years yet, experts have warned.

Wang Yinji, deputy general manager of the Chinese grains company Cofco, told a conference last year that China's per capita oil consumption is still well below that of the developed world, at just 17kg a year, compared with 40kg in the US. As consumers earn higher incomes, they tend to eat more oil-rich foods.

Total stocks of all vegetable oils - including palm oil, rapeseed oil, olive oil and soy oil - are set to be at their lowest since 2003, even as total production of vegetable oils is forecast to grow 30 per cent compared with five years ago. In sunflower oil for example, global consumption will hit 10.4 million tons, an increase of 12 per cent on this year.

USDA expects oil importers, particularly China and India, to increase their imports of palm oil to satisfy booming demand for vegetable oil in the short term and medium term as ending stocks of major soy oil exporters (Argentina, Brazil, and the United States) are forecast down 2 per cent from last year.

Vegetable oil is a major source of fat in the developing world, especially in the poorest countries where consumers are not able to afford nutritional staples, it says.

Soy plant sterol wins European Novel Foods approval

By Shane Starling

10/07/2008- The €400m European cholesterol-lowering, plant sterol market has a new entrant after a non-GMO, soy-derived sterol ingredient was yesterday approved for use within the European Union.

The Novel Foods approval means UK-based supplier Naturis is authorised to use its ingredient in "yellow fat spreads, salad dressings, milk type products, fermented milk type products, soy drinks, and cheese type products" across the EU's 27 member states.

"This approval is significant because it strengthens our heart health range," Naturis product portfolio manager, Gary Smith, told NutraIngredients.com.

"Our initial focus will be spreads and dairy products as well as supplements. We have held preliminary talks with companies in these areas and now that we have this approval can continue these discussions."

Products containing the company's ingredient derived from US-grown, non-GMO soy beans would be on shelves by year's end, he said.

The ingredient, for which branding was being established, would be marketed on its non-GMO (genetically modified organisms) status.

"We expect key players will be interested in a non-GMO product. Co-branding may be an option if our clients are interested in that," Smith said, adding the company would focus on western European markets to begin with.

"But we have the distribution network in place to deal with eastern Europe and are looking at that too," he said.

The ingredient would be priced at about €13 per kilogram, similar to existing "tall oil" sterol offerings on the market.

Substantial equivalence

Naturis applied for "substantial equivalence" to the UK Food Standards Agency (FSA) in February 2007 under EU Novel Foods regulations. The application cost almost €2000.

The equivalent product referenced in the application is an Archer Daniels Midlands (ADM) offering called CardioAid.

In its positive opinion the FSA noted an absence of objections to the application and that the ingredient was indeed substantially equivalent to CardioAid.

FSA is "content that phytosterols sold by Naturis meets the criteria for equivalence" it said in its letter to Naturis.

Other major plant sterol suppliers include Cognis' Vegapure and Forbes MediTech's Reducol.

Cognis' Vegapure range - comprising free sterols, sterol esters and spray dried sterols - is used in rye breads, rolls, and rye-based crisp breads as well as dairy applications.

Finland's Raisio produces a plant stanol called Benecol that appears in a range of end-products bearing the same name, and which are the market leaders along with Unilever's pro.activ range.

Cargill is awaiting Novel Foods approval for its Corowise ingredient in a range of categories including juices.

Naturis is a €14m natural ingredient supplier that is part of the ACI Group.

It specialises in ingredients in the areas of heart, brain, digestive and bone health.

These include pre- and probiotics, beta-glucans, omega-3s and calcium.

About 4000 tons of plant sterols (excluding plant stanols) are sold in Europe each year.

Approved cholesterol-lowering claims for plant sterol/stanol products exist in most European countries as well as the US.

India June edible oil imports up 82pc
14 Jul 2008 2:30 pm

Mumbai - Edible oil imports in June rose 82 per cent on month to 550,201 metric tons as importers rushed to ease a supply crunch in local markets, the Solvent Extractors' Association of India said Monday.

"The slow own in imports of vegetable oil during April-May dried up the supply pipeline, hence imports in June increased," the trade body said.

Traders and refiners reduced their inventories due to stock limits imposed by State governments and fears of harassment by overzealous civil supplies officers even though imported oil is exempt from stock limit norms, the trade body said.

June imports were practically unchanged from year-ago imports of 547,361 tons. Imports are usually higher during the lean crushing season in India, which lasts from April to September.

In the oil marketing year that began in November, total edible oil imports as of June totaled 3.1 million tons, up from 2.7 million tons a year ago, the data showed.

While crude palm oil imports during the period rose 39 per cent to 2.5 million tons, soyoil imports declined to 355,146 tons from 649,557 tons a year earlier.

A sharp rise was witnessed in refined, bleached, and deodorized palm olein imports in June, taking the overall imports of the oil product from November-June to 205,199 tons compared with 60,688 tons a year ago.

Palm oil is cheaper than most other edible oils and palm oil exporting countries are nearer to India than countries exporting more expensive products, like soyoil. India imports palm oil from Malaysia and Indonesia and soyoil from Brazil and Argentina.

Total vegetable oil imports from November-June rose 12 per cent on year to 3.57 million tons.

The Solvent Extractors' Association said imports are likely to total around 550,000-600,000 tons per month over the next three to four months - until the summer-sown oilseed crop is available for crushing in November.

Sowing of new soybean and groundnut crops is currently underway in India, and the crop will be harvested in October.

According to latest Agriculture Ministry data, 8.6 million hectares of land was under oilseed cultivation in India from June 1-July 10 compared with 8.1 million hectares a year ago.

Soybeans were sown on 5.4 million hectares, up from 4.4 million hectares a year ago, while groundnuts were sown on 2.46 million hectares, down from 2.60 million hectares.

Maharashtra soybean plant rates - July 14
14 Jul 2008 2:04 pm



Mumbai - Following are the rates offered by soybean plants in Maharashtra today.

Plant
Place
Rates

Kirti
Krishnur
2880

Kirti
Latur
2880

Tina
Latur
2840

Srinivasa
Nanded
2760

Kohinoor
Nanded
2775

Saismaran
Nanded
2760

New Mah
Dhulia
2830

Disan
Dhulia
2835

Sanjay soya
Dhulia
2830

Radhakrishna
Sangli
2850

Chakan
Sangli
2850

Bhakti exp
Jalna
2870

Shivparvati
Hingoli
2760

Siddharth
Akola
2770

Bhaskar
Amravati
2780

Bhaskar
Nagpur
2811

kargil
Nagpur
2775

Shamkala
Bhandara
2790

Tanya
Nagpur
2800
/////////////////////////////////////////////////////////////////////////////////////////////////// Madhya Pradesh soybean plant rates - July 14
14 Jul 2008 2:05 pm



Mumbai - Following are the rates offered by soybean plants in Maharashtra today.

Plant
Place
Rates

Laxmi solvex
Dewas
2740

Premier
Dewas
2720

Divya Jyoti
Narsinghpur
2750

Bhaskar Export
Mandideep
2740

Kirti
Dewas
2720

Ruchi Soya
Indore
2750

Prestige
Indore
2750

Prakash Solvex
Indore
2720

Adani
narsing
2730

Kargil
Indore
2735

Kastra/kirti
Dewas
2720

Gujarat Ambuja
Pritampur
2720

Khetan
Ratlam
2730

Dhanlaxmi
Shajapur
2750
//////////////////////////////////////////////////////////////////////////////////////////////////
PEC's tender for palm olein import
14 Jul 2008 10:40 am

Mumbai - State-run PEC Ltd has floated a tender for the import of 12,000 metric tons of refined, bleached and deodorized (RBD) palm olein, the company said. The last date for the submission of bids for the palm olein, which will be for delivery in August and September, is July 16.

The imports are part the Central government's plan to import one million tons of edible oil for sale at subsidized rates to lower-income households.

Oilseeds settle down on global cues
14 Jul 2008 5:22 pm

Mumbai – Indian vegetable oilseed futures closed down, affected by the heavy losses in the global edible oil markets, profit-booking of recent gains and strong improvement in June edible oil imports.



The Malaysian palm oil futures closed down on expectation of poor July 1-15 palm oil exports amid weakness in US soy oil. The US soy complex was trading down during the Asian trading hours due to favourable weather in US soy tracts and weakness in crude oil in electronic trading. August soy oil and August soybean were quoting down by 92 points and 37.25 cents on e-CBOT when the Indian markets closed.



The Indian oilseed market traded down throughout the session affected by the heavy losses in the global edible oil markets at opening. Profit-booking was also seen as the Indian soybean market had risen by more than 4% during the previous four sessions. Despite, the weak sowing in Maharashtra, Indian soybean sowing is 25% ahead of the previous year, which too was supporting the liquidation.



The Weather Watch report released by the Ministry of Agriculture on Friday estimated that 8.6 million hectares of land was under oilseed cultivation in India as on 11th July compared with 8.1 million hectares a year ago. Soybean planting was estimated to be 25% ahead at 5.4 million hectares against 4.4 million hectares covered at same time last year.



The strong improvement in June edible oil imports after dull imports during April and May also added to the selling pressure as it clearly indicated an easing of the tight supply situation.



India’s edible oil imports in June rose 82% on month to 5,50,201 tonnes as reported by Solvent Extractors’ Association of India [SEA] today. Imports of crude palm oil, RBD palmolein and soy oil in June were reported at 3,34,816 tonnes, 92,846 tonnes and 1,20,030 tonnes against 2,80,498 tonnes, 15,137 tonnes and 2,19,065 tonnes reported a year earlier. A sharp rise was witnessed in RBD palmolein imports in June.



The SEA said imports were likely to total around 550,000-600,000 tonnes per month over the next three to four months, until the khariff oilseed crop was available for crushing in November.



The August soybean contract at National Commodity Derivatives Exchange [NCDEX] closed lower at Rs. 2,702.00 [- 29.50] per 100 kg with 94,740 tonnes traded. The August contract at National Board of Trade [NBOT] ended down at Rs. 2,703.50 [- 30.50] per 100 kg.



August CPO at Multi Commodity Exchange of India closed down at Rs. 507.00 [- 1.00] per 10 kg with 2,170 tonnes traded.



Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] closed down as the likelihood of poor July 1-15 palm oil exports dampened sentiment amid weakness in US soy oil. The market was expecting Malaysia’s July 1-15 exports to be around 5,15,000 tonnes, lower on month, indicating that dull demand that commenced in May was still continuing.



The benchmark September contract closed down at MYR 3,524.00 [- 51.00] a tonne with 10,187 lots traded. [MYR=Malaysian Ringitt][1 lot=25 tonnes]



The US soy complex closed higher on Friday supported by a supportive USDA report and gains in crude oil. July soybeans settled 21 cents higher at $16.30 1/2 and November soybeans ended 9 cents higher at $15.96. December soymeal settled $4.10 higher at $428.10 per short ton. December soy oil finished 2 points higher at 66.02 cents per pound.



MUSTARD SEED



Mustard seed futures closed lower tracking the losses in domestic soy complex and global edible oil markets. Profit-booking was also seen of the gains made during the previous week. The improvement in sowing of khariff oilseeds and the sharp monthly increase in edible oil imports also affected the sentiments and supported the liquidation in the markets. The mustard seed market is now closely tracking the movements in soybean as the period of strong arrivals and demand was almost over.



Most active mustard seed September futures on NCDEX closed lower at Rs. 674.60 [- 2.50] per 20 kg with 80,050 tonnes traded.



The regional markets ended marginally up with August contract at Sirsa and Hapur settling at Rs. 569.000 [- 0.20] and Rs.629.00 [+ 0.80] per 100 kg.



CASTOR SEED



Castor seed futures closed higher with the strong bullish sentiments in the market persisting on account of the lack of good rains in the major castor tracts in Gujarat, Andhra Pradesh and Rajasthan. The uncertainty regarding the new crop arrivals, good demand amid negligible current arrivals and improvement in global quotes of castor oil were keeping the sentiments bullish in the market.



Castor seed August contract at NCDEX closed higher at Rs. 623.10 [+ 4.20] per 20 kg with 1,680 tonnes traded.



The regional markets also closed higher with September contract at Rajkot closing at Rs. 3,140.00 [+ 25.00] per 100 kg.