• Reuters reported that India may raise import duties on crude and refined edible oils to protect farmers. Local crushers are struggling to compete with cheaper edible oil imports from Argentina, Indonesia and Malaysia. Although India raised import duties in August, prices of oilseeds such as soybeans were still below the government-set price levels in the physical market. A government official said India may raise the import duty by 10 percentage points on crude and refined edible oils. Currently, the import duties are 15% on crude palm oil and 25% on refined palm oil.

• Bloomberg said that IOI Corporation has revised the human rights policies for its workers. The revision covers recruitment guidelines, minimum wage and freedom of association for workers. Under the revised policy, no recruitment fees will be charged to workers. Sub-agents that charge recruitment-related fees to workers will be required to repay workers and may face suspension by IOI. IOI is also planning to introduce productivity incentives to enable workers to earn at least 20% more than the minimum wage.

• Archer Daniels-Midland Co (ADM) reported disappointing 3QFY17 earnings as it struggled with a surplus of soybean. Bloomberg cited the chief executive officer (CEO) as saying that the operating environment for the group's agricultural services and oilseeds unit has been more challenging than expected. Bloomberg said that the last few years have been difficult for big trading houses as a series of bumper harvests has not only left the crop depressed but also curbed the price volatility and supply dislocation that traders can take advantage of. On a positive note, the worst is over. ADM's CEO expects global corn and soybean stocks to start shrinking and demand for soymeal to improve.
• It was also reported that Malaysia will be meeting European Union (EU) lawmakers in the coming weeks to discuss on the EU's planned resolution on palm oil and deforestation. The Plantation Industries and Commodities Minister said that the country is disappointed that the proposals put forth in the EU Parliament Resolution are being enacted by the EU Commission through a formal and binding EU regulatory process, even if the resolution is non-binding in nature. The minister added that the government will take the necessary action to protect the rights of 650,000 oil palm smallholders.
• Reuters reported that a protein shortfall in US soybean crop this year has forced processors like Bunge Ltd to cut the amount of the nutrient that the group can guarantee in soymeal, prompting concerns that animal feed costs and meat prices would rise. Adverse weather has lowered the protein content of soybeans this season. Traders said that high-protein soymeal that is typically sold with 47.5% to 48% protein is being offered at 46.5% to 47% instead. Although soybean processing plants can tweak processes to maximise protein yields, steeper production costs would be passed on to consumers in the form of higher selling prices.

• www.agriculture.com reported that Brazil's delayed soybean plantings are damaging the corn crop, which are planted after soybean. Most of the soybean planted in the region has a cycle of 105 to 115 days and due to the delays in soybean plantings, the areas planted with corn will be smaller and producers may register a drop in yields. In the state of Goias, only 6% of the areas have been planted with soybean so far vs. 42% in 2016. In the whole of Brazil, farmers have planted 30% of the areas so far vs. 41% last year.

• SGS and Intertek said that Malaysia's palm oil shipments rose by 2.3% and 2.46% respectively in October compared with September. According to SGS, Malaysia's palm exports to China climbed by 15.4% while the EU received 49.8 more shipments. Intertek said that RBD palm olein accounted for 35.3% of the country's palm exports in October while crude palm oil made up another 18.3%.

Source: AmInvest Research - 6 Nov 2017