For week ending October 15, 2009

       Cumulative January-July export at 723,774 MT in copra terms, however, remained below same period last year total at 1,069,099 MT by 32.3%, despite this month?s marked recovery. Breakdown is as follows, in MT: copra 7 (no export last year), coconut oil 381,173 (568,317), copra meal 186,085 (306,422), desiccated coconut 68,435 (76,049), oleochemicals in copra terms 12,926 (49,432); coco shell charcoal 19,650 (11,156), activated carbon 11,967 (14,059), glycerin 11,447 (11,439), fresh coconuts 893 (731), Others 16,431 (16,157).

       Europe was top destination for crude coconut oil with 54,760 MT mainly for the Netherlands, followed by the US with 18,693 MT, China 2,365 MT, Japan 1,600 MT, Taiwan 300 MT, and Singapore 186 MT. The US took the lead in cochin oil with 23,900 MT, trailed by Japan with 2,500 MT, and with limited volume going to Europe mainly Belgium 26 MT, and Hongkong 1 MT. Iran was market leader in RBD oil with 931 MT; trailed by Canada with 257 MT; Israel 126 MT; Russia 86 MT; Syria 81 MT; US 47 MT; Pakistan 45 MT; Australia 38 MT; China 31 MT; Europe 21 MT mainly Germany 17 MT, Netherlands 4 MT; Bangladesh 20 MT.

       Meanwhile, all of copra shipment amounting to 7 MT was destined for Korea.

       Export of desiccated coconut during the month totaling 9,313 MT was distributed to 42 countries worldwide with the US still leading the pack at 2,280 MT, nearly a quarter (24.5%) of aggregate. Second major buyer was United Kingdom with 1,041 MT (11.2%). The next four major buyers namely, Germany 739 MT, Netherlands 612 MT, Belgium 610 MT, and Canada 543 MT had a combined market share of 26.9% while 11 countries with uptake ranging 102-485 MT were jointly responsible for 27.4%. This consisted of the following, in descending order: France, Australia, China, Turkey, Spain, Japan, Sweden, New Zealand, Korea, Taiwan, and Norway. However, 25 other countries accounted for 10% of the market, each taking in volume in the range 4-99 MT.

       Activated carbon export during the month of 1,883 MT had 18 country destinations. Japan was likewise a market leader with 768 MT (40.8%), trailed by US 340 MT (18.15%), Ghana 132 MT (7.0%), and Russia 123 MT (6.6%). The rest had market shares lower than 4%. This consisted of 14 countries whose uptake ranged from a low of 10 MT to a high of 69 MT, the combined volume of which at 519 MT represented 27.5%.

       Export in July went to 34 country destinations across the world led by UAE/Dubai which took in 1,032 MT or 26.8% of total sales, trailed by UAR/Egypt at 484 MT or 12.6% and Saudi Arabia at 468 MT or 12.2%. Other buyers of substantial quantities were Jordan with 252 MT, Pakistan with 241 MT, Germany with 198 MT, France with 196 MT, and Portugal with 154 MT, which jointly accounted for 27.1%. The remaining 820 MT or 21.3% was shared by 26 other countries whose uptake ranged from a low of 1 MT to a high of 99 MT.

       Cumulative January-August figure stood at 489,808 MT, down fractionally by 0.4% from a comparable year-earlier period total at 491,975 MT. Palm kernel oil at 218,510 MT grew significantly by 47.2% from 148,425 MT at the same time last year; while coconut oil at 271,298 MT dropped by 21.0% from 343,550 MT. The Philippines supplied close to two-thirds (63.6%) of the 8-month coconut oil total with delivery of 172,442 MT (246,888 MT) while Malaysia was responsible for 81.7% of palm kernel oil purchases with 178,556 MT (131,325 MT).

       The Malaysian Palm Oil Board reported early this week that the country?s September crude palm oil output rose 4.1% to 1.557 million metric tons from August at 1.495 million tons. Exports in September fell marginally to 1.312 million tons from 1.317 million tons in August. Palm oil stocks rose 11.5% to 1.578 million tons at the end of September, the highest level since February. At the end of August, stocks were at 1.416 million tons. Stocks figure in September was slightly above market expectations of between 1.52 million tons and 1.57 million tons.

       An analyst at DBS Vickers, Ben Santoso said the Indonesian earthquake that hit key palm producing region Sumatra recently will not affect the country?s palm oil production in the long-term. He further clarified that at least in the companies that DBS covers, neither roads, tanks or major ports, which are on the other side of Sumatra were damaged. However, according to AmResearch analyst, although Padang, where the earthquake hit, is not a production ?hot spot?, there still might be some short-term disruptions in palm oil supply from Indonesia. It assured, though, that since west Sumatra was not a major producer of Indonesian palm oil, any short term disruption of palm oil supply from Padang would not have a significant impact on processing of crude palm oil.

       The Izmir Merchantile Exchange said Turkey?s olive oil yield in 2010 will recover from a year-long drought in 2007/08 season. Production could rise to 169,752 MT from 160,000 MT last season. The country?s record olive oil crop in the last 10 years was registered in 2000/01 season at 174,000 MT. Production reached 166,000 MT in 2006/07 prior the drought. Turkish olive oil exports last year dropped by 57% to 17,161 MT from 40,139 MT the previous year, as a result of the drought, while revenue almost halved to $71 million from $135 million in 2007. Turkey is the fifth largest exporter of olive oil in the world.

       Brent Fenton, managing director, ADM Europe said the acquisition will allow ADM to expand further its leadership position in agricultural processing in Europe and strengthen its soft seed processing activities in the region. The new site will support the Company?s expansion of its rapeseed and sunseed origination network in Central Europe. In line with ADM?s strategy to expand the size and global reach of its core model, the acquisition will increase the Company?s presence in the growing Eastern European market.

       However, the latest way to get around the duties is not illegal. Because crude oil traded internationally generally has some biodiesel content, the countervailing duties are not applicable to blends less than 20%. Thus, with US crude oil prices so low versus those in Europe, it has been economic to send B19 shipments from the US to the EU.

       The authors wrote, ?This study showed that it is feasible to replace the fat fixative agent with non-fat flavoring solution enriched with inulin and oligofructuse in snack production. The results from this study also indicate that bioactive ingredients were successfully incorporated into a convenience food such as a snack, while maintaining the high sensory acceptability typical of this food product.? The study taps into the two sides of healthy food, adding in health promoting ingredients, and removing unhealthy ingredients, in this case trans-fats.