2 Jul 2007
Palm oil may see further downward correction
Author: Admin | Filed under: Uncategorized
US to tighten laws ensuring sops for domestic oils only
Dipping trend Many Funds had liquidated a part of their position as the market was seen overheated.Demand-supply fundamentals continue to favor vegetable oils in general.
Washington If buzz in the US and
Canada is any indication palm oil’s dream run of the past several months is likely to end soon. Crude palm oil (CPO) market had spiked to levels (over
Malaysia ringgit 2,600 a tonne) not seen in recent past as a result of large diversion of the commodity to meet burgeoning bio-diesel demand. Liquidation by funds Over the last couple of weeks there has been a 10 per cent downward correction in palm prices (MYR 2,350/tonne). Funds had liquidated a part of their position as the market was seen overheated and ripe for correction. There is the strong possibility of a further slide if the
US decides to act. A large part of CPO import into the US (monthly average of a little less than 100,000 tonnes) is converted into bio-diesel and exported to
Europe. In the process, the
US exporter gets a hefty subsidy ($1 per gallon of bio-diesel exported). Loophole Trade representatives contend that the purpose of export incentive is to promote bio-diesel made out of
US origin vegetable oils, including soybean oil; but a loophole in the law has seen CPO walk away with the incentive. To ensure that only US origin oils get the benefit it is believed that the law will be tightened soon. Should that happen, the palm oil complex will receive a jolt as a newly found important market may begin to dry up. Of course, palm producers in Malaysia and
Indonesia can be expected to do their best to avoid a price collapse. They have the financial clout, having made enormous profits in the last three years. In any case, as the demand-supply fundamentals continue to favor vegetable oils in general, there may not be a collapse after all, but a further downward correction, perhaps, of another 10 per cent from the current levels, to reach close to MYR 2,000/tonne. Economics Clearly, CPO had begun to face demand compression at higher prices — above $650-700 a tonne — as the economics of bio-diesel production went haywire. So far, weather in major origins has been helpful for oilseed crops. Should concerns develop, it would arrest a price fall. Large Indian purchases to meet upcoming festival demand during August-October are also likely to provide support.
interested to import Palm Oil to INDIA please contact.
pls tell me palm oil packs is going to hike or drop why because iam going purchase
[...] the article here: Zoos Victoria under fire for anti-palm oil campaign Tags: accused-the-operator, australian, collecting-signatures, compulsory-labelling, melbourne, [...]
I hope they can get this cleared up. Zoos have a pretty good record of doing the right thing when it comes to helping save endangered animals, such as orangutans.
Allen Nyhuis, Coauthor: America’s Best Zoos
ki like to know wich price i can get on 40 feet container in 20. ltr. of jerry cans to Benin porto novo and how many days it tas
I like to know wich price i can get on 40 feet container in 20. ltr. of jerry cans to Benin porto novo and how many days it tas