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Jump in Chinese orders to boost soyoil prices
01.07.2010 12:51 "Agro Perspectiva" (Kyiv) —
Soyoil prices are to pull out of their decline, and rebuild a premium over rival palm oil, thanks to a pick up in shipments to China and India, the worlds top vegetable oil importers, Oil World has said.
Soyoil prices, which have fallen 10% from an early March high, were «likely to strengthen in the near-to-medium term because world imports have picked up», the influential analysis group said.
India is set to buy in 600,000 tonnes of the vegetable oil which is used for making cooking oil, margarine, confectionery and biodiesel in the July-to-September quarter, more than twice the level of a year ago, and the highest imports in five years.
China is to import 700,000 tonnes in the period, a huge jump from the 136,000 tonnes in the April-to-June quarter, after a period when supplies have been disrupted by a ban on purchases from Argentina, the worlds top soyoil exporter.
The main alternative suppliers, Brazil and the US, will «sharply increase soyoil exports to China in June and July».
«We expect soyoil to develop price premiums over palm oil,» Oil World said. Such a move would reopen a historic discount for palm oil, which is considerably cheaper to produce.
Worlds biggest soyoil importers 200910 (year-on-year change)
China: 1.60m tonnes (-36%)
India: 1.50m tonnes (+42%)
EU: 450,000 tonnes ( -43%)
Morocco: 380,000 tonnes (+16.2%)
Algeria: 350,000 tonnes (-4.1%)
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