- According to news reports, five of the world’s largest palm oil producers have announced an immediate moratorium on palm oil sourced via clearance of high carbon stock forests.
- Asian Agri, IOI Corporation, Kuala Lumpur Kepong, Musim Mas and Sime Darby Bhd said that they will suspend forest clearing until a year-long study on the threshold for high carbon stock forest is completed.
- Major plantation companies such as Golden Agri Resources, Wilmar International and Cargill have set zero deforestation policies based on a definition of 35 tonnes of carbon per ha. This means that there will not be any palm oil development on secondary rainforests and peatlands.
- Reuters reported that Sime Darby Bhd has delayed the construction of its palm oil mill and suspended talks to expand its planted area in Liberia due to the Ebola outbreak.
- Work will resume when the outbreak is under control. Although Sime Darby has signed an agreement with the Liberia Government to develop about 220,000ha of land for 63 years, Sime still needs to negotiate with the local communities before planting on the land.
- Oil World said that world production of the 10 major oilseeds is forecast to climb 4.3% in 2014F/2015F due to the improved outlook for US soybeans.
- Oilseed output may rise to 519.7mil tonnes in 2014F/2015F from 498.2mil tonnes in 2013/2014F. Oil World has forecasted that about 310.8mil tonnes of soybean would be harvested in 2014F/015F from 285.2mil tonnes in 2013/2014F.
- Oil World opined that soybean prices may temporarily fall below production cost, implying that there is downside risk from current levels.
- Finally according to Beijing-based Customs General Administration, China’s soybean imports fell by 5.3% YoY in August 2014. However in the eight months of the year, the country’s soybean imports expanded by 16.2% compared with the same period last year.
- China’s palm oil imports plunged 42.2% YoY in August 2014. Also in the eight months of the year, the country’s purchases of palm oil shrank 5.9% compared with the same period in 2013.
Source: AmeSecurities
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