Jun 28 2010 4:02PM
MUMBAI (Dow Jones)--India's oilseed stocks at the end of this marketing year are likely to be at an all-time high of 6 million-7 million metric tons as farmers have held back stocks because of cheap edible oil imports, a senior industry executive said Monday.
The country's oilseed stocks in the last marketing year that ended Oct. 31 were around 2 million tons, said Ashok Sethia, president of the Solvent Extractors' Association of India.
In India, most of the oilseed crushing is done in the first six months of the marketing year and the country relies mainly on edible oil imports in the second half. But in the current marketing year, higher imports in the first three months have left uncrushed more than half of the estimated domestic oilseed output of 23.11 million tons.
Monday, June 28, 2010
Friday, June 25, 2010
India Edible Oil Industry Seeks Removal Of Export Curbs
Jun 25 2010 2:26PM
MUMBAI (Dow Jones)--India's edible oil industry has urged the federal government to remove restrictions on exports of edible oil as prices have fallen sharply and farmers have been left with large stocks of oilseeds.
The government currently allows the export of edible oil in consumer packs of up to five kilograms, with a maximum limit of 10,000 metric tons annually. Exports of edible oils were freely allowed until March 2008.
"The export of edible oils, if freely allowed is unlikely to reach 50,000-60,000 tons per annum, which is hardly 0.35% of (India's) total edible oil consumption," said Ashok Sethia, president of the Solvent Extractors' Association of India.
Before the restrictions, India exported 20,000-30,000 tons of edible oil a year.
From November to June, India exported only 8,000 tons of edible oil. India mainly exports premium edible oils like coconut, sesame, rapeseed and groundnut oil.
The trade body also reiterated its demand to impose a 20% import duty on crude edible oil and 27.5% on refined edible oils.
India, the world's second-largest vegetable oil importer, currently doesn't impose any import tax on crude edible oils but levies a 7.5% tax on refined edible oils.
MUMBAI (Dow Jones)--India's edible oil industry has urged the federal government to remove restrictions on exports of edible oil as prices have fallen sharply and farmers have been left with large stocks of oilseeds.
The government currently allows the export of edible oil in consumer packs of up to five kilograms, with a maximum limit of 10,000 metric tons annually. Exports of edible oils were freely allowed until March 2008.
"The export of edible oils, if freely allowed is unlikely to reach 50,000-60,000 tons per annum, which is hardly 0.35% of (India's) total edible oil consumption," said Ashok Sethia, president of the Solvent Extractors' Association of India.
Before the restrictions, India exported 20,000-30,000 tons of edible oil a year.
From November to June, India exported only 8,000 tons of edible oil. India mainly exports premium edible oils like coconut, sesame, rapeseed and groundnut oil.
The trade body also reiterated its demand to impose a 20% import duty on crude edible oil and 27.5% on refined edible oils.
India, the world's second-largest vegetable oil importer, currently doesn't impose any import tax on crude edible oils but levies a 7.5% tax on refined edible oils.
Tuesday, June 15, 2010
India Farm Minister: No Decision Yet On Imposing Sugar Import Tax
NEW DELHI (Dow Jones)--India is unlikely to impose a tax on sugar imports immediately, said agriculture minister Sharad Pawar Monday, despite demand from local refiners to curb cheaper imports.
"We will take a decision on this (levying an import tax) after 10-15 days," Pawar told reporters.
The government is also considering cutting the allocation for subsidized sugar sale, he said.
Currently, mills have to sell 20% of their output for government welfare programs.
The government is considering a proposal to reduce this to 16%, he said.
"We will take a decision on this (levying an import tax) after 10-15 days," Pawar told reporters.
The government is also considering cutting the allocation for subsidized sugar sale, he said.
Currently, mills have to sell 20% of their output for government welfare programs.
The government is considering a proposal to reduce this to 16%, he said.
Monday, June 14, 2010
Soy Complex - U.S., China & India
The soy complex was up in U.S. market on reports of China buying U.S. soybean oil. Due to the ongoing problem with Argentine soybean oil which China has banned since April 1 and congestion at Brazil port, China is now buying oil from U.S.
The july soybeans contract was up by 1.20% on friday ending the week at $ 9.4625 per bushel. Soymeal july futures was up by 2.62% or $ 7.4 and settled at $ 289.7 per short ton while soybean oil july contract moved up by 0.41% ending the week at 36.75 cents / pounds.
As per the usda report, U.S. soybean production for 2010-11 is projected at 90 million tonnes and exports at 36.74 million tonnes. Brazilian soybean forecast as per usda reports for 2010-11 stands at 65 million tonnes whereas Brazil government's production forecast stands at 68.7 mmt
The soybean complex was down on friday in Chinese market. The september soybeans contracts was down by 15 yuan to close at 3690 yuan per ton (US$ 540) , sep meal futures dropped by 13 yuan closing at 2704 yuan (US$ 396) while sep soy oil dropped by 24 yuan to close at 7266 yuan (US$ 1063) per ton.
As per the reports, Qingdao Port, the biggest port in Shandong province of China, is congested by ships arriving to unload soybeans with as many as nine more ships, each carrying about 60,000 metric tons of soybeans, are scheduled to unload this month in addition to the two or three that have already been processed. It seems the Chinese market is facing the situation of oversupply.
Indian soybean july futures ended the week up by around 1% against its previous close and was trading at approx. US$ 408 per ton. The refined soybean oil july contract was trading at around US$ 942 per ton.
Indian soybean meal was getting offered at US$ 346-350 pmt fob. Argentina soybean was indicatively at US$ 365-370 per ton fob. Soya degum (crude) oil was getting quoted at US$ 804 per ton cif Mumbai, Inida.
The july soybeans contract was up by 1.20% on friday ending the week at $ 9.4625 per bushel. Soymeal july futures was up by 2.62% or $ 7.4 and settled at $ 289.7 per short ton while soybean oil july contract moved up by 0.41% ending the week at 36.75 cents / pounds.
As per the usda report, U.S. soybean production for 2010-11 is projected at 90 million tonnes and exports at 36.74 million tonnes. Brazilian soybean forecast as per usda reports for 2010-11 stands at 65 million tonnes whereas Brazil government's production forecast stands at 68.7 mmt
The soybean complex was down on friday in Chinese market. The september soybeans contracts was down by 15 yuan to close at 3690 yuan per ton (US$ 540) , sep meal futures dropped by 13 yuan closing at 2704 yuan (US$ 396) while sep soy oil dropped by 24 yuan to close at 7266 yuan (US$ 1063) per ton.
As per the reports, Qingdao Port, the biggest port in Shandong province of China, is congested by ships arriving to unload soybeans with as many as nine more ships, each carrying about 60,000 metric tons of soybeans, are scheduled to unload this month in addition to the two or three that have already been processed. It seems the Chinese market is facing the situation of oversupply.
Indian soybean july futures ended the week up by around 1% against its previous close and was trading at approx. US$ 408 per ton. The refined soybean oil july contract was trading at around US$ 942 per ton.
Indian soybean meal was getting offered at US$ 346-350 pmt fob. Argentina soybean was indicatively at US$ 365-370 per ton fob. Soya degum (crude) oil was getting quoted at US$ 804 per ton cif Mumbai, Inida.
Friday, June 11, 2010
R M seed to trade lower on weak fundamentals
Fundamental Analysis
NCDEX July Mustard seed futures closed mildly higher on short covering and firm overseas market on Thursday.
Weak fundamentals of oilseeds may drag the prices lower in the medium term.
Domestic Kharif oilseeds area so far been covered on 0.27 lakh hectares against 0.47 lakh hectares during corresponding period a year ago, as on May 28, 2010.
The area under Groundnut Seed is reported down at 0.075 lakh hectares against 0.100 lakh hectares a year ago and Sunflower sowing is reported steady at 1.0 lh in the corresponding period last year.
Technical Analysis
Prices closed below its 10 Day & its 20 Day EMA, which indicates bearish market sentiments.
14-Day RSI is at 49.10, which is in neutral zone.
Daily MACD is in negative territory.
Outlook
Mustard seed prices are expected to trade lower on weak fundamentals of oilseeds and better carry over stock mustard seed as well as oilseeds (for short term). In the long term, it is expected to trade lower on account of higher global oilseeds output and huge import of edible oils may provide support to bears.
NCDEX July Mustard seed futures closed mildly higher on short covering and firm overseas market on Thursday.
Weak fundamentals of oilseeds may drag the prices lower in the medium term.
Domestic Kharif oilseeds area so far been covered on 0.27 lakh hectares against 0.47 lakh hectares during corresponding period a year ago, as on May 28, 2010.
The area under Groundnut Seed is reported down at 0.075 lakh hectares against 0.100 lakh hectares a year ago and Sunflower sowing is reported steady at 1.0 lh in the corresponding period last year.
Technical Analysis
Prices closed below its 10 Day & its 20 Day EMA, which indicates bearish market sentiments.
14-Day RSI is at 49.10, which is in neutral zone.
Daily MACD is in negative territory.
Outlook
Mustard seed prices are expected to trade lower on weak fundamentals of oilseeds and better carry over stock mustard seed as well as oilseeds (for short term). In the long term, it is expected to trade lower on account of higher global oilseeds output and huge import of edible oils may provide support to bears.
Make changes in edible oil import duty: SEA
Newswire18 / New Delhi June 9, 2010, 0:06 IST
Edible oil trade has reiterated its demand for imposition of a 10 per cent import duty on crude oil as well as raising the duty on refined oil to 17.5 per cent, Ashok Sethia, president, Solvent Extractors’ Association of India (SEA) said on Tuesday.
“We requested the ministry to make changes in the import duty structure and the tariff value to protect the industry from excessive import of edible oils,” said Sethia.
Currently, there is no duty on import of crude edible oils in the country, while refined edible oils attract an import duty of 7.5 per cent.
Representatives from SEA, the Central Organisation for Oil Industry and Trade (COOIT) and the Soybean Processors Association of India (Sopa) met agriculture ministry officials on Tuesday to discuss oilseed output in the country, ahead of the kharif sowing season. There are fears that the area under soybean—the main kharif oilseed—may drop substantially this year on the back of falling prices and large carryover stocks, pulling output way below last year’s level of around 10 million tonnes. According to trade officials, the country has four million tonnes of soybean stock lying due to poor crushing. Thin demand pulled down the wholesale price of soybean to an average of Rs 1,931.80 per 100 kg in April as against Rs 2,548.75 a year -ago.
Prices of almost all oilseeds have been declining since 2008-09 owing to cheap edible oil imports, said P K Sardar, executive director, COOIT.
The Ministry of Agriculture has pegged the country’s edible oil demand at 13.8 million tonnes, while the Ministry of Food and Consumer Affairs pegged the domestic availability and import projections of edible oil for the near future at 17.8 million tonnes.
In the face of high imports and low prices, domestic crushing of oilseeds was poor, and this was likely to divert oilseed farmers to other remunerative crops in kharif 2010, said Sardar.
He said industry representatives also requested for increase in tariff value, which had not been revised since September 2006. “Tariff value of imports should be revised every quarter, in tandem with international oil prices. Also tariff value should be imposed on import of some oils like sunflower,” he said.
Tariff value or base import price is the rate at which the government imposes custom duty on edible oil import, irrespective of the contracted price.
The government has kept the base import price of palm oil and soyoil unchanged for nearly four years now to keep domestic prices in check. The base import price of palm oil was last changed on July 31, 2006, and that of soyoil on Sep 15, 2006.
Trade officials say that with the price of refined edible oils in global markets almost doubling since 2006, the effective rate of duty on refined oils worked out to around four per cent. This had tilted the balance of trade in favour of refined edible oil import, thereby hitting local refiners.
“The officials did not reject our recommendations, they will examine our views and then forward the proposal to the Ministry of Finance to take a decision on the duty structure,” said Sardar.
Palm oils constituted around 77 per cent of the total edible oil imports in November-April, down from 82 per cent a year ago, while the share of soft oils in the same period grew to 23 per cent from 18 per cent.
Edible oil trade has reiterated its demand for imposition of a 10 per cent import duty on crude oil as well as raising the duty on refined oil to 17.5 per cent, Ashok Sethia, president, Solvent Extractors’ Association of India (SEA) said on Tuesday.
“We requested the ministry to make changes in the import duty structure and the tariff value to protect the industry from excessive import of edible oils,” said Sethia.
Currently, there is no duty on import of crude edible oils in the country, while refined edible oils attract an import duty of 7.5 per cent.
Representatives from SEA, the Central Organisation for Oil Industry and Trade (COOIT) and the Soybean Processors Association of India (Sopa) met agriculture ministry officials on Tuesday to discuss oilseed output in the country, ahead of the kharif sowing season. There are fears that the area under soybean—the main kharif oilseed—may drop substantially this year on the back of falling prices and large carryover stocks, pulling output way below last year’s level of around 10 million tonnes. According to trade officials, the country has four million tonnes of soybean stock lying due to poor crushing. Thin demand pulled down the wholesale price of soybean to an average of Rs 1,931.80 per 100 kg in April as against Rs 2,548.75 a year -ago.
Prices of almost all oilseeds have been declining since 2008-09 owing to cheap edible oil imports, said P K Sardar, executive director, COOIT.
The Ministry of Agriculture has pegged the country’s edible oil demand at 13.8 million tonnes, while the Ministry of Food and Consumer Affairs pegged the domestic availability and import projections of edible oil for the near future at 17.8 million tonnes.
In the face of high imports and low prices, domestic crushing of oilseeds was poor, and this was likely to divert oilseed farmers to other remunerative crops in kharif 2010, said Sardar.
He said industry representatives also requested for increase in tariff value, which had not been revised since September 2006. “Tariff value of imports should be revised every quarter, in tandem with international oil prices. Also tariff value should be imposed on import of some oils like sunflower,” he said.
Tariff value or base import price is the rate at which the government imposes custom duty on edible oil import, irrespective of the contracted price.
The government has kept the base import price of palm oil and soyoil unchanged for nearly four years now to keep domestic prices in check. The base import price of palm oil was last changed on July 31, 2006, and that of soyoil on Sep 15, 2006.
Trade officials say that with the price of refined edible oils in global markets almost doubling since 2006, the effective rate of duty on refined oils worked out to around four per cent. This had tilted the balance of trade in favour of refined edible oil import, thereby hitting local refiners.
“The officials did not reject our recommendations, they will examine our views and then forward the proposal to the Ministry of Finance to take a decision on the duty structure,” said Sardar.
Palm oils constituted around 77 per cent of the total edible oil imports in November-April, down from 82 per cent a year ago, while the share of soft oils in the same period grew to 23 per cent from 18 per cent.
India 2009-10 Sugar Output May Reach 19 Mln Tons - Industry Executive
Jun 11 2010 1:04PM
NEW DELHI (Dow Jones)--India will likely produce about 19.0 million metric tons of sugar in 2009-10, around 3.0 million tons more than the estimate at the start of the marketing year in October, as late rains improved cane yields, a senior industry executive said Friday.
Crushing in Karnataka and Maharashtra states is likely to continue until the end of June, said the executive, who didn't want to be identified. This will "help push up sugar output."
India's annual sugar requirement is around 23.0 million tons. A shortfall in local production had forced the country to import the sweetener for a second straight year in 2009-10.
Indian sugar mills have signed new deals to import a total of 1.0 million tons of both raw and white sugar, which is expected to land in the country by the end of the marketing year, he said.
Mills have already imported 3.5 million tons of raw and white sugar since Oct. 1, the executive added.
NEW DELHI (Dow Jones)--India will likely produce about 19.0 million metric tons of sugar in 2009-10, around 3.0 million tons more than the estimate at the start of the marketing year in October, as late rains improved cane yields, a senior industry executive said Friday.
Crushing in Karnataka and Maharashtra states is likely to continue until the end of June, said the executive, who didn't want to be identified. This will "help push up sugar output."
India's annual sugar requirement is around 23.0 million tons. A shortfall in local production had forced the country to import the sweetener for a second straight year in 2009-10.
Indian sugar mills have signed new deals to import a total of 1.0 million tons of both raw and white sugar, which is expected to land in the country by the end of the marketing year, he said.
Mills have already imported 3.5 million tons of raw and white sugar since Oct. 1, the executive added.
Thursday, June 10, 2010
India 2009-10 Soyoil Imports Likely 1.5 Mln-1.6 Mln Tons - Executive
Jun 10 2010 3:44PM
MUMBAI (Dow Jones)--India's soyoil imports in the 2009-10 marketing year are likely to rise more than 50% from a year earlier as the premium over palm oil has narrowed, a senior industry executive said Thursday.
Total soyoil imports in the marketing year to Oct. 31 are likely to be in the range of 1.5 million-1.6 million metric tons, up from 989,613 tons a year earlier, said Pradip Desai, managing director of Mumbai-based importer Palmtrade Services Pvt. Ltd.
Soyoil normally commands a premium over palm oil due to its better quality, but over the past year the premium has shrunk to about $30-$40 per ton from about $100-$150/ton.
MUMBAI (Dow Jones)--India's soyoil imports in the 2009-10 marketing year are likely to rise more than 50% from a year earlier as the premium over palm oil has narrowed, a senior industry executive said Thursday.
Total soyoil imports in the marketing year to Oct. 31 are likely to be in the range of 1.5 million-1.6 million metric tons, up from 989,613 tons a year earlier, said Pradip Desai, managing director of Mumbai-based importer Palmtrade Services Pvt. Ltd.
Soyoil normally commands a premium over palm oil due to its better quality, but over the past year the premium has shrunk to about $30-$40 per ton from about $100-$150/ton.
Tuesday, June 8, 2010
VEGOILS-Palm oil flat as market eyes key industry data
Jun 8 2010 11:26AM
KUALA LUMPUR, June 8 (Reuters) - Malaysian crude palm oil futures made little headway on Tuesday as investors waited for cues on stocks and production data due this week although concern about Europe's debt crisis sapped sentiment.
* Traders are talking about a 5-6 percent rise in production as Malaysian yields improve, which might weigh on a market that has lost about 8 percent so far this year.
* Reuters will issue a palm oil poll later in the day, ahead of key stocks, production and export data due on Thursday.
* The benchmark August crude palm oil futures on the Bursa Malaysia Derivatives Exchange edged 0.2 percent lower to 2,444 ringgit ($733.3). Traded volume was light at 3,626 lots of 25 tonnes each.
* U.S. palm oil futures <0#cpo:>, which debuted last month, were untraded.
* "The Malaysian market is contained in a tight range, there may be some support if crude oil recovers," said a trader at a foreign brokerage.
* Oil edged higher towards $72 on Tuesday as a forecast for another drop in U.S. inventories helped stabilise a volatile market driven by concerns that Europe's debt crisis would cut into energy demand. [O/R]
* Higher crude oil supported other vegetable oil markets. In Asian hours, U.S. soyoil futures for July delivery edged higher. In China, the January 2011 soyoil contract on Dalian Commodity Exchange rose 0.4 percent.
Palm, soy and crude oil prices at 0541 GMT Contract Last Net chg Settle Open High Low Volume PALM OIL JUN0 2543 + 2.00 2541 2543 2543 2543 39 PALM OIL JUL0 2487 -9.00 2496 2496 2496 2480 245 PALM OIL AUG0 2444 -5.00 2449 2454 2456 2438 2393 PALM OIL SEP0 2419 + 0.00 2419 2427 2427 2413 556 CBOT soyoil* 36.63 + 0.16 36.47 N/A 36.63 36.48 N/A NYMEX crude** 71.80 + 0.36 71.44 N/A 71.95 70.75 N/A Palm oil prices in Malaysian ringgit per tonne
* Soy oil in U.S. cents per pound ** Crude in USD per barrel
($1=3.333 Malaysian Ringgit)
Monday, June 7, 2010
UPDATE: Malaysia Palm Oil Stocks To Rise As Buyers Favor Soyoil
Jun 7 2010 8:55AM
KUALA LUMPUR (Dow Jones)--Malaysia's palm oil inventory levels are likely to rise in the second half of the year as output in the second-largest palm oil producer in the world increases and major importers opt for soyoil due to a narrow spread to palm, affecting export growth, according to industry analyst James Fry.
"There is no reason to doubt (the rise in stocks) especially since the Ramadan boost to exports ends relatively soon and China and India are favoring soyoil right now," Fry, who is also chairman at London-based agribusiness consultancy firm LMC International Ltd., told Dow Jones Newswires via email over the weekend.
He also said CPO production in Malaysia is likely to rise from the 2009 output level of 17.6 million metric tons as replanting activities in Malaysia remain slow while underlying growth in mature areas in the country may boost supplies.
Rising stocks and expectations for a rise in Malaysia's 2010 palm oil output could place downward pressure to CPO prices on the Bursa Malaysia Derivatives. The benchmark August contract was trading MYR29 lower at MYR2,445/ton at 0251 GMT.
Palm prices have declined 8.8% since the beginning of the year as palm's wide discount to soyoil disappeared, steering buyers to cheaper soyoil.
CPO prices may remain under downward pressure even as soyoil prices remain low as a record soybean harvest from South America boosts availability.
"Also, the El Nino problems mentioned earlier this year seem to have been overstated," Fry said.
Earlier this year, industry analysts and growers said Malaysia may fall short of the 2010 output target of 18.1 million ton
India May Soymeal Exports Fall 32.4% - Trade Body
Jun 7 2010 10:35AM
MUMBAI (Dow Jones)--India's soymeal exports in May fell 32.4% to 60,228 metric tons from 89,156 tons a year earlier, the Soybean Processors Association of India said.
The country's soymeal exports have been falling over the past few months due to weak global demand and because local prices are higher than international rates.
Soymeal exports in the October-May period declined 41.1% to 1.62 million tons, the trade body said in a statement over the weekend.
India exports soymeal mainly to Southeast Asian countries.
Friday, June 4, 2010
U.S. & Indian Soybean Oil Futures
Refined Soyoil futures India on Thursday 3rd June
June - US$ 963 per ton (i.e. approx. 43.34 cents / pound)
July - US$ 968 per ton (~ 43.56 cents / pound)
Aug - US$ 971 per ton ((~ 43.70 cents / pound)
U.S. Cbot Soybean Oil (crude) futures (Wednesday settlement price)
July - 37.42 cents / pound (~ US$ 831.50 per ton)
Aug - 37.64 cents / pound (~ US$ 836.50 per ton)
Dec - 38.54 cents / pound (~ US$ 856.50 per ton)
Ref Soya Oil Wholesale Prices in Indian market
Mumbai Market (benchmark for imported soy oil) - US$ 910-920
Indore Market (benchmark for locally produced soy oil) -US$ 955-965
Indian Import Price
Soybean oil degummed (crude) - US$ 835 cif Mumbai
Soybeans Futures prices India on Thursday 3rd June (per ton)
June - US$ 425.5, July - US$ 418.75, Aug - US$ 415.25
June - US$ 963 per ton (i.e. approx. 43.34 cents / pound)
July - US$ 968 per ton (~ 43.56 cents / pound)
Aug - US$ 971 per ton ((~ 43.70 cents / pound)
U.S. Cbot Soybean Oil (crude) futures (Wednesday settlement price)
July - 37.42 cents / pound (~ US$ 831.50 per ton)
Aug - 37.64 cents / pound (~ US$ 836.50 per ton)
Dec - 38.54 cents / pound (~ US$ 856.50 per ton)
Ref Soya Oil Wholesale Prices in Indian market
Mumbai Market (benchmark for imported soy oil) - US$ 910-920
Indore Market (benchmark for locally produced soy oil) -US$ 955-965
Indian Import Price
Soybean oil degummed (crude) - US$ 835 cif Mumbai
Soybeans Futures prices India on Thursday 3rd June (per ton)
June - US$ 425.5, July - US$ 418.75, Aug - US$ 415.25
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