EUROPEAN EDIBLE OILS MARKET TO CROSS US$38BN BY 2022
The edible oils market in Europe is anticipated to cross US$38 Billion by 2022, on account of changing dietary habits, growing preference for healthy edible oils and increasing urbanization.
Rapeseed oils occupied the largest share in Europe edible oils market in 2016. Edible oil is made of plant fats, animal or microbial origin, and is used in frying, baking and other types of cooking. Olive oil, palm oil, soybean oil, canola oil, pumpkin seed oil, corn oil, sunflower oil, safflower oil, peanut oil, grape seed oil, sesame oil, argan oil and rice bran oil are some of the commonly used edible oils across the world.
GOLD EXTENDS RALLY
Gold futures climbed for a fifth-straight session on Wednesday as geopolitical uncertainty kept prices at their highest settlement level in about 13 weeks.
April gold GCJ7, +0.15 percent rose $3.40, or 0.3 percent, to settle at $1,239.50 an ounce—the highest finish since Nov. 10.
Market participants attributed the latest run, at least in part, to persistent uncertainty about President Donald Trump’s political agenda.
Analysts at The 7:00’s Report said that for gold, three things bear watching: the dollar, interest rates and sentiment toward stocks. The yield on the long bond has declined, the dollar has weakened and stocks have struggled.
MALAYSIAN GOVT TO REVIEW EXPORT DUTY ON PALM OIL
The Malaysian government plans to revise its export duty structure for palm oil in consultation with Indonesia after a marked drop in demand due to higher prices in the last few months.
Seri Mah Siew Keong, Minister of Malaysian Plantation Industries and Commodities, said the issue of export duty was raised by Indian importers and would be reviewed at the next Council of Palm Oil Producer Countries, which includes Indonesia.
The country expects a rebound in palm production to 19.4 million tons (mt) this year from last year’s 17.32 mt. Exports were down at 16 mt last year against 17.4 mt in 2015.
NEW WHEAT ARRIVALS IN INDIA
Market arrivals of the wheat crop have begun in Madhya Pradesh and Gujarat, leading to a softening trend in prices of the cereal, which had spiked in recent months on supply concerns.
Also, the increase in grain imports from countries such as Australia and Ukraine, which are expected to touch 5 million tons this year, is seen weighing on domestic prices. In Indore, the benchmark market for the cereal, daily arrivals are hovering between 40 and 50 quintals, whereas in the mandis of Gondal and Rajkot in neighboring Gujarat, arrivals are ranging between 40 and 80 quintals.
AUSTRALIA SEEKS ROYALTIES ON NATURAL GAS
The petroleum resource rent tax has failed to collect billions of dollars in revenue and the Turnbull government should reintroduce royalties for natural gas projects off north-west Australia.
Dr Diane Kraal from Monash University has warned flaws in the PRRT regime mean Chevron’s giant Gorgon gas project off WA will not pay the tax until “at least 2030”, despite decades of operation.
She said modeling showed $5bn in revenue would be raised from Gorgon by 2030 if royalties were reintroduced. She urged the Coalition to do just that to ensure Australians were properly remunerated for the exploitation of their gas resources.
JUMP IN US CRUDE IMPORTS TO REVERSE IN MARCH
The recent jump in US crude imports could reverse from March as major oil exporters start cutting production.
Experts revealed that US crude inventories surged in the week ended Feb 3 by 13.8 million barrels – the second largest weekly build up on record.
However, the rise did not shock the market, since preliminary data from the American Petroleum Institute (API) late on Tuesday had indicated an even bigger increase. It is also said that the recent jump to an increase in imports, especially those from the Gulf Coast. However, output cuts by the Organization of the Petroleum Exporting Countries (OPEC) and other producing nations could reverse this trend.
MILK MAKES MONEY IN GLOBAL MARKET
Economists were buoyed by gains in Fonterra’s overnight global dairy trade auction, maintaining their end-of-season forecasts above Fonterra’s $6 farm gate milk price prediction.
Overall auction prices rose 1.3 percent, following a 0.6 percent gain a fortnight ago, while the crucial element of whole milk powder prices rose 1 percent to $US3314 ($NZ4541) per ton.
The gains were generally against market expectations of a slight decline. The combination of Chinese demand and the global shortage underpinned the gains, which put many Fonterra farmers beyond the break-even mark, after two seasons of losses for many.
DEMONETIZATION HITS INDIA’S TEA PRODUCTION
It seems all is not well with the tea production figures in south India. The crop figures for 2016 show that the cultivation from the southern part of the country is down by 16.4 per cent during January-November 2016, compared to the same period a year ago.
The crop figures for the period were 196.57 million kg whereas these stood at 212.97 million kg in 2015. Interestingly, the north India and All India figures are high this time. The reasons include change in climate, high wages which reduced cultivation, and the impact of demonetization in the plantation sector.