For week ending February 25, 2010

       Export of coconut oil at 140,855 MT eclipsed January last year total of merely 24,579 MT by 473.1%. Shipment of oleochemicals likewise soared 140.8% to 5,293 MT in copra terms from 2,198 MT year-earlier. On the other hand, delivery of desiccated coconut slumped 30.9% to 7,757 MT from 11,228 MT. Meanwhile, export of copra meal totaled 69,766 MT as against nil last year.

       In the case of copra meal, of total delivery of 69,766 MT during the month, Korea captured 43.0% or 30,028 MT. Vietnam remained the second biggest importer with uptake at 23,755 MT (34.0% share) while China was responsible for 15,900 MT (22.8%). India took in very limited quantity at 83 MT (0.1%).

        January-November 2009 import stood at 32,865 MT, a leap by 50.2% from 21,883 MT at the same time year-earlier. The top six imports were: palm oil 19,967 MT (8,092 MT), palm kernel oil 3,501 MT (2,465 MT), soybean oil 2,116 MT (2,355 MT), corn oil 1,757 MT (1,832 MT), olive oil 1,677 MT (1,638 MT), and rapeseed oil 1,484 MT (2,467 MT).

       Trailing far behind were Indonesia with 509 MT of palm oil (12.5%); Denmark with 319 MT (7.8%) made up of sunflower oil 167 MT and rapeseed oil 152 MT; Taiwan with 199 MT (4.9%) thereof soybean oil 159 MT, sesame oil 40 MT; Sweden 158 MT (3.9%) of which rapeseed oil 106 MT, corn oil 52 MT; Singapore 130 MT (3.2%) comprising of soybean oil 41 MT, corn oil 37 MT, rapeseed oil 33 MT, sunflower oil 19 MT. The rest such as Italy, Spain, Belgium, Turkey, Hong Kong, Germany and the United States, in descending order, delivered between 12 MT and 90 MT, while Others unspecified countries contributed 81 MT.

       Mitsubishi Corporation, Manila Branch announced the relocation of its business offices effective March 01, 2010 to the 14th Floor L.V. Locsin Building, 6752 Ayala Avenue corner Makati Avenue, Makati City 1226. The new trunkline number: +63 (2) 403-5719.

       Six new plants are scheduled to operate this year. All of the plants located along the coastal areas will crush imported soybeans. China, which imports soybean mainly from the US and South America, accounts for more than half of the world?s soybean trade. Among the six new plants, two are owned by the state-run COFCO each with capacity of 1.2 million MT soybeans per year and located in Guangxi and Tianjin. COFCO is also expanding its plant in Rizhao, Shandong province to 6,000 MT a day starting March or April. Aside from COFCO, other state-owned firms Sinograin and Chinatex Grains & Oils Import and Export are expanding. Sinograin will start operating two soya plants in Dongguan, Guangdong province and Zhanjiang, Jiangsu province.

       Higher duty on Indonesian palm oil exports to Pakistan has reduced shipment to the country. Pakistan palm oil purchases from Indonesia totaled only 409,751 MT, a reduction by about half from the 788,003 MT bought in 2007. Purchases rose in 2009 to 522,810 MT, mainly due to a large shipment of 329,100 MT in May when expectations of a rise in Indonesia?s export tax prompted additional buying. Pakistan currently charges import duty of Rs8,900 ($105) per ton on Indonesia?s crude palm oil, but charges 15% less for the same product from Malaysia as a result of a tariff agreement signed in 2007 between the two countries. The difference was 5% in 2008, and 10% in 2009.

       In a related development, the Pakistan Vanaspati Manufacturers? Association said the country is expected to import significantly less palm oil from Indonesia in February after it imported huge volume of around 190,000 tons in January. Nasir Ibrahim, senior member of the association, said: ?Given this huge quantity, which is much higher than the norm of about 125,000 tons, and with stocks piling up at the ports in Karachi, it?s highly likely that February imports will be much lower. My guess would be it might turn out to be lower or maximum close to 100,000 tons for full month basis.? However, total import for the calendar year has been projected to slightly increase from the previous year with gradual population increase and income growth fueling rise in demand.

       ?Our meta-analysis showed that there is insufficient evidence from prospective epidemiologic studies to conclude that dietary saturated fat is associated with an increased risk of CHD, stroke, or CVD ?, wrote the researchers. ?However, nutritional epidemiologic studies provide only one category of evidence for evaluating the relation of saturated fat intake to risk for CHD, stroke and CVD. An overall assessment requires consideration of results of clinical trials as well as information regarding the effects of saturated fat on underlying disease mechanisms, as discussed elsewhere in this issue,? they added.

       The biodiesel market is expected to grow from $8.6 billion in 2009 to $12.6 billion in 2014. Market growth is primarily dependent on the availability, quality, and yield of feedstock, as it accounts for 65% to 70% of the cost of biodiesel production. Biodiesel derived from rapeseed oil forms the largest segment of the overall market. Germany is the single largest producer of biodiesel with 2.8 million tons produced in 2008. The biodiesel market also offers immense opportunities in countries such as U.K., India, and China, as these regions have high diesel fuel prices and a large number of diesel fueled vehicles. Transportation forms the main application market for biodiesel, with automotives accounting for 70% of the global biodiesel production.

       At the recent National Biodiesel Conference, General Motors (GM), one of the world?s largest automakers with headquarters in Detroit, announced that its new line-up of heavy duty diesel pickups will have B20 biodiesel capability. B20 fuel is a blend of 20-percent biodiesel and 80-percent conventional diesel, which helps lower carbon dioxide emissions and lessens dependence on petroleum. Mike Robinson, vice-president, Environment, Energy and Safety Policy said, ?B20 capability in our new heavy-duty trucks is the latest addition to a growing number of alternative fuel options offered by General Motors. We are seeking different paths to fuel solutions in order to maximize efficiency, reduce emissions and minimize the dependence on petroleum?. GM already leads in the marketing of FlexFuel vehicles capable of running on E85 ethanol with more than 4 million vehicles on the road today. Like ethanol, biodiesel is a domestically produced, renewable fuel made primarily of plant matter - mostly soybean oil.