• Bloomberg reported that China will issue import quotas for wheat, corn, rice and cotton for 2017F soon. Import volumes are expected to be unchanged from 2017's levels. The import quota for wheat is expected to be 9.636mil tonnes, of which 90% are for state-owned firms. The import quota for corn is estimated to be 7.2mil tonnes, of which 60% are for state-owned firms.

• A Reuters survey indicated that Indonesia's CPO exports may have risen in August due to higher production. CPO exports may have increased from 2.4mil tonnes in July to 2.7mil tonnes in August as production rose from 3.5mil tonnes to 3.6mil tonnes. Palm inventory in Indonesia may have been 2.6mil tonnes in August compared with 2.4mil tonnes in July.

• According to Reuters also, China's soybean imports from the US may be delayed by at least two weeks as suppliers struggle to find high quality beans due to crop damage from the hurricanes. The poor bean quality has caused delays at gulf terminals with waiting time at the ships rising to 10 to 12 days from the usual five days. Shipment delays are expected to result in tight supplies at the end of October and early November.

• Malaysian Digest reported that an MPOB delegation will be meeting members of the European Parliament in Brussels this week to address the EU's Draft Report on issues relating to palm oil. According to a government official, the Draft Report is a preliminary report with citations that are not 100% accurate or not pertinent to the scenario in Malaysia. The MPOB is obliged to intervene as it can provide precise and factual information on the palm oil industry in Malaysia.

• The Star reported that Sabah will have its first oleochemical plant in two years' time. Gamalux Oils Sdn Bhd will set up the oleochemical/fatty acid plant at the Lahad Datu Palm Oil Industrial Cluster. Gamalux, which is from Pakistan, already has an existing plant at Lahad Datu, which uses solvent extraction technologies from palm oil. The size of the oleochemical plant was not disclosed.

• According to Rubber News, Goodyear is introducing its first commercially available tyres made with a soybean oil-based compound. By using soybean oil in tyres, Goodyear has found a new way to keep rubber compounds pliable in changing temperatures. Tests show that rubber made with soybean oil mixes easily in the silica-reinforced compounds used to manufacture certain tyres. The resulting compounds enhance tyre performance in dry, wet and winter conditions.

• SGS and Intertek said that Malaysia's palm oil shipments rose by 16.5% and 18.1% respectively in the first 10 days of October compared with the same period in September. According to SGS, Malaysia's palm exports to China climbed by 54.1% while the EU received 58% more shipments. Intertek said that RBD palm olein accounted for 38.4% of the country's palm exports in the first 10 days of October while crude palm oil made up another 15.7%.

Source: AmInvest Research - 16 Oct 2017