28 March 2002 (OIL WORLD WEEKLY). Today’s US planting intentions report shows a surprising decline in thisyear’s soybean area to only 73.0 million acres, down by 1.6 Mn fromaverage expectations and down by 1.1 Mn acres from last year. This pluslower March 1 US soybean stocks should support prices in the near tomedium term.
. Malaysian oil palm trees affected and production jeopardized by thedrought in several parts of the Peninsula, particularly in the 2 states ofJohor and Perak, which account for a combined 46% of the area.
. India may curb imports of GM soybean oil when the new trade policy willbe announced for 2002/03. Controversy about GM and non-GM soya oil hasheated up. But some see this as a way to curb soya oil imports in aneffort to raise prices (following the example of China).
. Chinese imports of oilseeds and/or products will soon have to pick up,when interior stocks are used up.
. World stocks of oils & fats to decline sharply in Jan/ Sept 2002, asproduction insufficient to cover demand. Oil prices likely to strengthenin months ahead.