· Last week, soybean prices rose as wet weather may delay plantings in the US. At current levels, the discount between soybean oil and CPO prices is 17.8% or US$137/tonne. In comparison, the five-year average discount was 13.9%.

· Oil World said that global production of 10 oilseeds is estimated to fall by 1.2% from 528.8mil tonnes in the previous season to 522.4mil tonnes this season. Unusually high yields for soybeans in the US and South America are not expected to be repeated this season.

· Oil World also said that unless the weather deteriorates in North America, soybean prices would come under pressure in the near term due to a 4.7% increase in inventories. Global production of 11 vegetable oils is forecast to expand by 3.7% to 176.3mil tonnes this season.

· Bloomberg reported that the FDA (Food and Drug Administration) of the US expects to make a final decision on partially hydrogenated oils on or before 15 June 2015. In 2013, FDB issued a statement that partially hydrogenated oils are no longer recognised as safe. If the decision is final, the oils would be classified as food additives subject to approvals by the FDA.

· Bloomberg also reported that Thailand would be seeking renewable energy supplies in a government auction in July 2015. The state energy regulator will give priority to biogas, biomass and waste when it bids to purchase electricity in July. The regulator also plans to secure supply from solar projects.

· Thailand’s renewable energy capacity is expected to rise from 4,500MW currently to 6,000MW by the end of the year. · According to news reports, a group of institutional investors including Allianz Global Investors and New York State Common Retirement Fund are calling for stronger RSPO (Roundtable for Sustainable Palm Oil) standards. The group called for RSPO to protect forests and peat lands for certified palm oil production.

· A group of consumer companies also signed a letter, urging RSPO to enforce stricter standards. According to the letter, RSPO is not doing enough to curb deforestation or ensure that companies are complying with the standards. Five of the companies such as Colgate-Palmolive and Johnson and Johnson have gone beyond RSPO by creating their own sourcing policies.

Source: AmeSecurities Research - 8 Jun 2015