Oilseeds

Haryana aims 1.1 MMT rabi oilseeds in 2017-18 vs 945,000 MT yr ago.

ICAR aims to increase oilseeds production by 40 per cent in the next five years to 45 million tonnes by bringing more area under cultivation and raising crop yield. The increase in oilseeds output would help the country in cutting down import of vegetable oils to less than 50 per cent from the current 70 per cent. India produced 32.1 million tonnes of oilseeds in the 2016–17 crop year (July–June) from 26.21 million hectares at a productivity of 1,225 kg per hectare. The country imported about 14.5 million tonnes of vegetable oils in 2016–17. The institute has identified 17.5 million hectares of fallow land in various states and out of that it wants at least 3.5 million hectares to be brought under oilseeds crop. The ICAR institute has pegged the total vegetable oil requirement at 33.20 million tonnes by 2022 and estimated that 17.03 million tonnes would be available from domestic market and over 16 million tonnes would be imported.

Rajasthan pegs 2017-18 soybean output at 1.2 million tonne, up 7.6%. Rajasthan pegs 2017-18 Groundnut output at 1.2 million tonne, up 2%.

Chhattisgarh pegs ’17-18 kharif oilseed crop at 227,480 tonne, up 29%. Chhattisgarh pegs ’17-18 soybean output at 112,660 tonne, up 19%.

Edible oil prices down in Oct-Dec on ample stocks. Global edible oil prices are likely to see a bearish trend in Oct-Dec due to ample supplies. Crude palm oil futures on Bursa Malaysia falling to or below 2,600 ringgit (about 39,770 rupees) per tonne in Oct-Dec. Currently, the November crude palm oil contract on the Bursa Malaysia is at 2,852 ringgits per tonne. A production surplus (of edible oils) in 2017-18 (Oct-Sep) result in a recovery of stocks and become bearish factor for oils. India 2017-18 palm oil import 9.7 million tonne, up 5%. India 2017-18 soyoil imports 3.6 million tonne, up 6%. India 2017-18 sunflower oil import 2.35 million tonne, up 9%. World edible oil prices probably bottomed out Jul. Indonesia ’17 palm oil output 36 million tonne, up 12%. Global ’16-17 sunflower oil export up 24% on year. Global ’16-17 sunflower oil export at 10.4 million tonne. World 2018 palm oil output 69.74 million tonne, up 4%. Indonesia 2018 palm oil output at 38.2 million tonne, up 6%. CPO futures at 2,600 ringgits/tonne by Oct-Dec. Malaysia 2018 palm oil output at 20.6 million tonne, up 27%. World 2017-18 veg oil output 224 million tonne, up 3%

India edible oil imports is estimated to rise 1.6% to 15.5 million tonne in the current marketing year ending October. There are expectations of higher imports as production is stagnating and local oilseeds remain uncrushed. Of the total edible oil imports estimated for 2016-17 (Nov-Oct), palm imports would likely comprise the bulk at about 9.65 million tonne, up from 9.32 million tonne bought in the year-ago period. Malaysia palm oil stocks rising till Dec. See Malaysia palm oil stocks falling Jan-Sep. Scales up 2017 Malaysia palm oil output view to 20 million tonne. Scales up 2017 Indonesia palm oil output view to 35 million tonne. ndia ’17-18 sunflower oil import up 1% at 2.15 million tonne. India ’17-18 palm oil import up 4% at 9.65 million tonne. India ’17-18 soyoil import down 3% at 3.4 million tonne. India ’17-18 edible oil import up 2% at 15.5 million tonne

Among oilseeds, output of groundnut is seen declining 23% on year to 190,000 tonne, while production of sunflower, another major crop grown in the state, is seen down 14% on year at 68,000 tonne. The overall output of oilseeds in the state is seen at 480,000 tonne, against 589,000 tonne in 2016-17.

European vegetable oils were firm, supported by a strong rise in Malaysia, but activity remained thin with some buyers seeing the recent rise as overdone. Malaysian palm oil futures jumped to their highest level since March, driven by a fall in production and higher exports that kept inventory numbers lower than expected.

Egypt’s state buyer GASC has issued a tender to purchase 10 KMT of sunflower oil and 30 KMT of soybean oil. The sunflower oil is to be delivered between October 25-November 10, 2017 and the soybean oil between November 5-20, 2017. In addition, it is planned to purchase 10 KMT of soybean oil for Egyptian pounds. The deadline for tender bids is September 12, 2017.

The country exported 3.792 MMT of vegoils to an amount of USD 2.834 billion in January-July 2017. In particular, exports of sunflower, safflower and cotton oils totaled 3.656 MMT to an amount of USD 2.728 Bl. The largest volumes went to India (USD 933.265 million worth, 34.2% of their exports in value terms), Spain (USD 282.14 million worth, 10.3%) and China (USD 228.187 million worth, 8.4%). Exports to other countries totaled USD 1.284 billion (47.1%). The share of these commodity items in overall exports reached 11.4% in value terms. Soybean oil exports totaled 108.653 KMT to an amount of USD 81.755 Ml. Exports of rape and mustard oils made up 7.952 KMT to an amount of USD 6.747 Ml.

As of August 1, 2017, Russian growers held 440.8 KMT of oilseeds, or 84 KMT (23.5%) more than at the same time last year (356.8 KMT). Oilseed stocks decreased 75.9 KMT in July. Grower sunseed inventories totaled 176.1 KMT, or 25.8 KMT (17.2%) more than at the same time last year (150.3 KMT). Sunseed stocks decreased 113.5 KMT in July.

U.S. Commerce Department considered that Argentinian and Indonesia exports of biodiesel are subsidized. This would result in tariffs ranging from 50.29 percent to 64.17 percent in the case of Argentina and 41.06 percent and 68.28 percent regarding Indonesia. In 2016, Argentina exported nearly US$ 1.2 billion of biodiesel to the United States.

Edible oil prices were steady to firm in the early trades. Groundnut oil prices were steady due to restricted buying and selling. Cottonseed oil firmed up due to retail demand. Palm olien improved due to thin supply.

IMD Agrimet division has advised farmers in Gujarat to plant sunflower and sesame if the first crop failed due to the recent flood or water logging. Groundnut, soybean, castor, and guar are among the major crops grown in the state. Gujarat has received 26% above-normal rains in the southwest monsoon season so far.

Futures contracts in the edible oil basket, barring crude palm oil, traded lower on domestic exchanges. Soybean futures on NCDEX ended 0.4% lower. Higher imports of edible oil in the country also dragged down prices of the oilseeds. Refined soy oil contracts on NCDEX traded 0.84% lower due to ample stocks in the country. Crude palm oil traded higher due to pick up in demand in wholesale markets. Futures contracts of crude palm oil on the Malaysian bourse ended down after India doubled import duty on crude palm oil to 15%.

The Solvent Extractors Association of India has urged the government to raise the import duty on crude sunflower and mustard oil from the current 12.5% to 17.5%, in line with crude soybean oil. The association has requested the government to further increase the import duty on refined soybean, sunflower and mustard seed oil to 25% from the current 20%, in line with the refined, bleached and de-odorised palmolein. The SEA has also urged the government to further increase the duty to discourage import of refined oils and to support domestic refining industry and improve the capacity utilisation in the country.

Crude palm oil to 15 per cent from 7.5 per cent. Refined to 25 per cent from 15 per cent. Soya and sunflower have been raised to 17.5 per cent from 12.5 per cent. The hike in import duty of crude and refined palm oil will help restrict cheaper imports from Malaysia and Indonesia and benefit farmers which are in distress due to fall in prices of oilseeds below minimum support price because of bumper production.

Edible oil and oilseeds are likely to become costlier by 4-5 per cent due to the government decision to raise import duty on crude and refined oil, with immediate effect.

EU oilseed production in the 2017/18 season from 32.06 MMT to 33.03 MMT. The 2017/18 EU crop include 21.91 MMT of rapeseed (up 8% year-on-year), 8.5 MMT of sunseed (up 3%) and 2.62 MMT of soybeans (up 5.9%). The forecast for rape plantings increased from 6.60 Ml ha to 6.65 Ml ha (up 2% year-on-year), while that for soya plantings was raised from 0.95 Ml ha to 0.97 Ml ha (up 14.7% year-on-year). Sunflower planted acreage remains at last year level 4.13 Ml ha (up 1.1% from last season).

U.S. oilseed production for 2017/18 is projected at 130.9 million tons, up 3.9 million from last month mainly due to higher soybean production. Soybean production is forecast at 4,381 million bushels, up 121 million on higher yields. Harvested area is forecast at 88.7 million acres, unchanged from July. The first survey-based soybean yield forecast of 49.4 bushels per acre is 1.4 bushels above last month but 2.7 below last year’s record. With higher production and lower beginning stocks, soybean supplies for 2017/18 are projected at 4,777 million bushels, up 2 percent from last month. U.S. soybean exports are raised 75 million bushels to 2,225 million on increased supplies and lower prices. Crush is reduced on lower global soybean meal import demand. Soybean ending stocks are projected at 475 million bushels, up 15 million from last month. The U.S. season-average soybean price for 2017/18 is forecast at $8.45 to $10.15 per bushel, down 10 cents at the midpoint. The soybean meal price forecast of $295 to $335 per short ton is down $5.00 at the midpoint. The soybean oil price is forecast at 31 to 35 cents per pound, up 1 cent on both ends of the range. U.S. changes for 2016/17 include higher exports, lower crush, and lower ending stocks. Soybean exports are raised 50 million bushels to 2,150 million on outstanding export sales and shipments through July. With lower crush only partly offsetting higher exports, ending stocks are projected at 370 million bushels, down 40 million from last month. Global oilseed production for 2017/18 is projected at 576.7 million tons, up 2.8 million, mainly on a 2.3-million-ton increase for soybean production. The higher U.S. forecast was partly offset with a 1.5-million-ton reduction for India based on the latest government planting data indicating lower harvested area. Soybean and canola production is projected down for Canada, where hot and dry weather conditions in the Canadian Prairies lowered yield prospects for both crops, and excessive rainfall in eastern Canada led to a lower soybean harvested area estimate. Other changes include increased sunflowerseed production for Russia, increased rapeseed production for the EU, and lower peanut production for India. Global soybean exports for 2017/18 are up 1.5 million tons as higher U.S. exports are partly offset by lower Argentina shipments. Beginning stocks for 2017/18 are raised based on lower crush and exports for Argentina for 2016/17. Coupled with higher production, 2017/18 soybean ending stocks are increased 4.3 million tons to 97.8 million.