Preliminary UCAP data show the Philippines exported 122,878 MT of coconut products measured in copra terms in December 2008, a sharp drop by 37.0% from December year-earlier at 195,055 MT. Revenue estimated at USD67.784 million likewise declined substantially by 45.4% from USD124.045 million previously, dragged mainly by a combination of significantly reduced coconut oil shipment and lower border price. Revenue figures exclude oleochemicals which were still unavailable.

       Oleochemicals was the only bright spot among the major exports achieving modest increment of 6.9% at 7,579 MT from 7,091 MT, in copra terms. Coconut oil shipment plummeted 41.0% to 64,584 MT from 109,501 MT; copra meal nosedived by 65.6% to 19,499 MT from 56,646 MT; desiccated coconut fell 9.7% to 8,269 MT from 9,154 MT.

       More than one-half (53.0%) of total coconut oil foreign trade in December was delivered to the European market. In absolute value, this amounted to 34,250 MT. The United States took in 25,998 MT representing 40.3%. Other markets were Japan with 3,720 MT and Taiwan with 616 MT for respective market shares of 5.8% and 1.0%.

       The coconut oil market in India is likely to decline further as supply increased in Kerala with the resumption of peak production season said Talat Mehamod, a trader. He also noted a decreased offtake of oils by industrial users from other parts of the country which are likely to further depress prices in the coming days. Supply of copra has also shown an increase as stocks from the auction held in Sabarimala come into the market. Pilgrims to the hill shrine of Sabarimala take 4-5 coconuts per person as offerings to the deity, and annually at least 10 million people visit the temple during October-January.

       South American soya oil output this season is under threat from a prolonged drought that may result in low supplies of soybeans and higher prices unless sufficient rains come next month. Leading meteorologist MDA Federal said that concerns are growing over the soybean crop in Argentina, in particular, despite recent showers.

       According to the state news agency, Agencia Estadual de Noticias de Parana, soybean farmers in Brazil?s southerly Parana state are turning to non-GM soybean varieties for the 2008/2009 crop. It said that farmers are making the switch after Agriculture Secretary Walter Bianchini confirmed that production costs for conventional soybean lines are lower than those for their transgenic counterparts.

       Pakistan is to increase purchases of palm oil to around 350,000 MT in the first quarter of this year, a sharp increase by 40% from 250,000 MT in a similar period last year as traders take advantage of the lower prices to make up for a shortfall in domestic oilseed production.

       The country traditionally has high reserve of edible oils during the first three months of the year as the domestic oilseed harvest starts to appear around this time and majority of imports of vegetable oils are usually made in the final quarter. However, buyers delayed their imports last year as they waited to see the outcome of the cottonseed harvest, which subsequently turned out to be below-average.

       The International Air Transport Association (IATA) said commercial international flights may soon use biofuels as early as next year if governments speed up its certification as an alternative jet fuel. The current time line though is 2013 but IATA, which groups 230 airlines that accounts for over 90% of international travel, has challenged governments to push certifiers to move the process forward and deliver by 2010 or 2011. Giovanni Bisignani, IATA director general and CEO, said recently that they are working with governments and regulators to agree on certification rules.

       Petroperu, Peru?s state-owned energy firm has started importing biodiesel to comply with the country?s new fuel requirements. The company reports it bought 72,000 barrels of biodiesel from suppliers that import it for the first three months of 2009. This amounts to about 800 barrels a day or $10 million. In 2007, the government passed a law requiring diesel fuels to contain at least 2% biodiesel with effect from 2009 and 5% in 2011. Implementation this year, however, has been delayed to March to give suppliers more time to comply.

       Erick Eckhardt and colleagues at the University of Kentucky found out why some dietary fats, specifically long-chain fats, such as oleic acid (found in olive oil), are more prone to induce inflammation. Long-chain fats, it turns out, promote increased intestinal absorption of pro-inflammatory bacterial molecules called lipopolysaccharides (LPS). While dietary fats that have short chain can be absorbed directly into the bloodstream from the intestines, long-chain fats need to be first packaged by the intestinal cells into particles known as chylomicrons (large complexes similar to HDL and LDL particles). Erick and colleagues wondered whether some unwanted LPS particles, routinely shed by the bacteria that inhabit the human gut, might also be sneaking in the chylomicrons.