• According to a Reuters survey, Indonesia's palm stockpiles fell in May as exports increased, underpinned by the Ramadan festive season. CPO exports may have increased from 2.16mil tonnes in April to 2.38mil tonnes in May while domestic consumption may have been 924,500 tonnes in May. CPO production in Indonesia may have risen from 2.9mil tonnes in April to 3.38mil tonnes in May.

• Reuters also quoted the American Heart Association as saying that coconut oil raises "bad" cholesterol, similar to other foods high in saturated fats such as butter and beef. Coconut oil is 82% saturated fats compared with 63% for butter and 50% for beef. The association added that instead of coconut oil, people should cook with polyunsaturated fats such as corn, soybean or peanut oil.

• The Guardian reported that a Belgian court has ruled that advertising claims on the health and environmental benefits of a palm oil-free "Choco" spread are illegal. The case was brought by Ferrero, which manufactures the Nutella spread, against the supermarket chain Delhaize. Back in 2013, Delhaize claimed that the outlet's best-selling "Choco" spread was better for the planet and consumers' health as it does not contain palm oil. Delhaize has been ordered not to repeat the claim about its "Choco" spread or else, it will face a fine of €25,000 for each repetition.

• In Pakistan, the Punjab Food Authority may ban the production of banaspati ghee in the province. The final decision on the ban will be made after a thorough research on the matter by qualified authorities. The Punjab Food Authority said that banaspati ghee contains trans-fats, which causes heart diseases. Sub-standard of palm oil used in the production of ghee may result in cancer.

• According to Hellenic Shipping News, Brazilian soybean exports slowed down slightly in 1H of June 2017 but are expected to end the month near record levels for the third straight time. So far, shipments in June have amounted to 4.86mil tonnes compared with the record volume of 10.96mil tonnes for the whole month of May. Expansions in port capacity in recent years have allowed exports to flow smoothly.

• Eco-Business said that some of the world's largest palm oil companies have joined forces with NGOs to launch an initiative to help prevent the extinction of orang utan. Called the Palm Oil and NGO (PONGO) Alliance, its members include palm oil companies such as Musim Mas, Wilmar International and Sime Darby. The PONGO Alliance is seeking to save 10,000 orang utans in Borneo.

• According to Bangkok Post, Thailand's Commerce Ministry has asked petrol retailers to stock up on biodiesel to help the local planters. According to the plan, the retailers would stock up a total of 90mil litres of biodiesel vs. 50mil litres previously. This would help absorb 76,000 tonnes of palm oil from the market. Thailand, which is the third largest producer of palm oil in the world, is forecast to produce 11.7mil tonnes of palm oil in 2017F.

• Australia's Commodities Bureau has slashed its forecast of sugar prices to an average of US$0.15/pound vs. US$0.22/pound due to an increase in sugar stockpiles. Sugar inventory is expected to rise by 3.0mil tonnes to 71.1mil tonnes in 2017F/2018F on the back of higher production from China, India, Thailand and the European Union.

• SGS and Intertek reported that Malaysia's palm oil shipments fell by 16.7% and 14.8% respectively in the first 20 days of June compared with the same period in May. SGS said that Malaysia's palm exports to China fell by 20.8% while Intertek reported that RBD palm olein accounted for 41.6% of the country's palm shipments.

Source: AmInvest Research - 28 Jun 2017