Reuters Daily Agriculture Brief 120509

China, Japan struggle; EU banks face test
* China April exports tumble sharply
* Bank of America sells $7.3 bln of shares in China bank
* EU to stress test its banking sector - sources
* Bank of France, Bernanke less downbeat
* Nissan, Hitachi and Daiichi Sankyo all post big losses

BEIJING/BRUSSELS May 12 (Reuters) - Chinese exports dropped sharply and a clutch of Japanese companies registered hefty losses on Tuesday, while central banks expressed some optimism that the worst was over for the world economy.
Banks, the epicentre of the financial crisis, continued to hold the markets' focus with Bank of America rising over $7 billion and the European Union saying it would follow Washington's lead and conduct tests on its banking sector.
A bigger than expected 22.6 percent annual fall in Chinese April exports showed global demand remained subdued at best, with Japanese exporters continuing to suffer.

GRAINS:

Soy, corn unchanged ahead of USDA stocks report
SINGAPORE, May 12 (Reuters) - Chicago soy and corn futures were almost flat in thin trade as investors awaited a crucial U.S. supply and demand report.
Analysts said the soy market could come under some pressure on talk that China is slowing imports of the oilseed after buying record quantities in recent months that propelled prices to a seven-month top last week.

Western Australia rules out bumper grains crop-CBH
SYDNEY, May 12 (Reuters) - An unseasonally dry autumn so far has ruled out a bumper grains crop in Australia's top exporting state of Western Australia, grains handler CBH Group said on Tuesday.
"The long-range forecast is not very good, it's still very hot in Western Australia," CBH's general manager of operations Colin Tutt told Reuters.

India revises up grains output forecast by 0.9 pct
NEW DELHI, May 12 (Reuters) - India has revised up its expected grains output in the crop year ending June by 0.9 percent to 229.85 million tonnes from a February forecast of 227.88 million tonnes, a government website showed on Tuesday.
Wheat output in India, the world's second-biggest producer, was expected at 77.63 million tonnes, down slightly from 77.78 million tonnes estimated in February.

EDIBLE OIL/OILSEEDS:

Palm futures at one-week top on hot weather
KUALA LUMPUR, May 12 (Reuters) - Malaysian palm futures surged 2.4 percent to a one-week top on fears of hot dry weather cutting into production and traders taking positions ahead of a crucial U.S. soy report.
"Output is a worry, it might be due to the current hot weather," said a trader with a local commodities brokerage.

China May soy imports seen at 3.66 mln T-MOFCOM
BEIJING, May 12 (Reuters) - China expects soybean imports in May to reach 3.66 million tonnes, the latest estimate by China's commerce ministry showed on Tuesday. The figure was lower than estimated by traders at between 4 to 5 million tonnes.
The ministry's estimate was in line with actual arrivals for April, which rose 55.2 percent on year to 3.71 million tonnes, according to China's customs. Beijing's stockpiling of domestic soybean had led crushers to shift to cheap imports.

Dry weather hurting Malaysian palm output for 2009
KUALA LUMPUR, May 12 (Reuters) - Palm oil output in Malaysia will struggle to rise in the next few months and may not even hit strong double-digit peaks this year as the current hot and dry weather hurts yields, plantation officials said on Tuesday.
Production in the world's second-largest supplier of the vegetable oil will register marginal growth until September or October where the increase may only be above 5 percent compared to double-digit growth in previous years.

Europe may ban Indian groundnut imports -report
NEW DELHI, May 12 (Reuters) - The European Union may ban groundnut imports from India due to the presence of aflatoxin, a fungus, the Business Standard reported on Tuesday, citing the head of an industry body.
A European delegation would visit India in September to check quality standards and if processing units fail to meet European standards, imports from India might be banned, Sanjay Shah, chairman of the Indian Oilseeds and Produce Export Promotion Council told the newspaper.

SOFTS:

Sugar, coffee rise, weak dollar helps
LONDON, May 12 (Reuters) - Raw sugar futures touched another near three-year high on investor buying, and coffee edged up, helped a weaker dollar, with arabica traders focused on a Colombian supply shortage, dealers said.
A global sugar deficit of 7.5 million to 7.8 million tonnes is expected in 2008/09, up from a previous estimate of a 4.3 million tonne shortfall, the International Sugar Organization said on Monday.

Heavy rain threatens Ivorian cocoa mid crop
ABIDJAN, May 12 (Reuters) - Persistent heavy rainfall in some Ivorian cocoa growing regions last week, after several weeks of humid conditions, increased the risk of black pod disease outbreaks in cocoa plantations, farmers and analysts said on Tuesday.
Black pod disease, which thrives in the wet, blighted the October-March main crop in the world's biggest grower.

Indonesia cocoa output seen below 500,000 T -ICCO
KUALA LUMPUR, May 12 (Reuters) - The International Cocoa Organization (ICCO) revised down Indonesia's cocoa output to "well below" 500,000 tonnes in the crop year to September 2009 due to poor maintenance, its chief Jan Vingerhoets told Reuters on Tuesday.
The ICCO had pegged Indonesia's output at 510,000 tonnes in its February estimates.

Malaysian cocoa powder sold at 8-yr high -trade
KUALA LUMPUR, May 12 (Reuters) - Cocoa powder from Malaysia was sold at $3,000 a tonne for nearby shipment, its highest level since 2001, suggesting that demand for the product was steady even while grinders in Asia struggle to sell butter during the economic meltdown, industry sources said on Tuesday.
Indonesian cocoa powder was also traded recently at above $2,000 a tonne to buyers in South America, but there were no details on quantity. Powder is used in coating in chocolate manufacturing and beverages, while butter is the key ingredient for making chocolates.

BEYOND THE HEADLINES:

Indonesia to cut soybean purchases on local output
JAKARTA, May 12 (Reuters) - Indonesia, the world's sixth-biggest soybean importer, may buy 1.16 million tonnes of soybean this year, down about 6 percent from 2008, on higher domestic output, an industry official said on Tuesday.
"Indonesia's soybean demand may grow 2-3 percent this year but we don't expect imports to rise because of higher domestic harvests," Ali Basry, director of the Indonesian representative office of the American Soybean Association - International Marketing, said in an interview with Reuters.

Reuters Daily Agriculture Brief 290409

Financial Crisis - 0755 GMT

- New swine flu infections found around the world; governments tell people to avoid Mexico where the death toll stood at 159
- Inflation rates "very low" in the euro zone but should rise towards the end of the year says Trichet in newspaper interview
- U.S. Fed expected to make statement around 1815 GMT after two-day policy meeting. First quarter U.S. GDP due at 1230 GMT
- The eurozone's largest bank Santander posts a 5 pct fall in first quarter net profit
- ArcelorMittal disappoints, reports slightly worse-than-expected Q1 results
- Australia's fourth largest lender, ANZ reports a bigger-than-expected 43 percent drop in half-year cash profit
- South Korea posted a record current account surplus for March as exports rose for second consecutive month
- Ireland's economy is expected to shrink by 11.6 percent between 2008 and 2010 - research body

GRAINS:

U.S. soy recovers after swine flu sell-off
PARIS/SYDNEY, April 29 (Reuters) - U.S. soybean futures rebounded as traders took the view that selling earlier in the week had been overdone, while corn and wheat extended gains on concerns about the slow pace of U.S. planting.
"After the big sell-off, there's some buying back-in while there's still sowing delays in the United States that's helping to support prices," said Pat Cogswell, a trader at MF Global Australia.

EDIBLE OIL/OILSEEDS:

Palm claws back some losses from flu sell-off
KUALA LUMPUR, April 29 (Reuters) - Malaysian crude palm oil futures gained 1 percent, bouncing off one-week lows earlier in the session, as investors shifted focus from swine flu to expectations of higher demand.
"Perhaps we are getting back to our own fundamentals of higher demand and tight stocks. We had a healthy correction and now its time to jump back in," one dealer from a local commodities broker said.

China cancelling soy cargoes as margins fall-trade
BEIJING/SINGAPORE, April 29 (Reuters) - Chinese soybean buyers have cancelled up to five U.S. soybean cargoes in the past few days because plentiful imports are squeezing crushing margins, traders said on Wednesday.
"We heard some 4-5 cargoes for June, July and August shipment were cancelled. Crushing margins have fallen a lot recently," said one Beijing-based trading manager with an international trading house.

BEYOND THE HEADLINES:

China soybean glut to worsen, may slow imports
SINGAPORE/BEIJING, April 29 (Reuters) - China's relentless soybean imports have caused an oversupply in the domestic market and the situation may worsen in the months ahead as plentiful shipments are in the pipeline.
With domestic crush margins softening, Chinese importers have cancelled up to five cargoes and signed no orders for new purchases this week, traders have said.

Economic woes may damage moves to slow deforestation
KUALA LUMPUR/JAKARTA, April 29 (Reuters) - Growing economic pain may increasingly force consumers to turn to palm oil, one of the cheapest cooking oils, a move that could scupper nascent plans to slow deforestation in Southeast Asia.
With rising output in Indonesia, the world's biggest palm oil producer and home to the eighth largest expanse of forests, and tight land supplies in Malaysia, the world's second largest supplier, conservation's economics look even less appealing.

North American pork hit with bans on flu scare
WASHINGTON, April 28 (Reuters) - North American pork products were hit with bans in the wake of an outbreak of a new swine flu strain, even though health officials said consumers could not contract the virus by eating pork.
The virus has killed about 150 people in Mexico, and has made 65 people ill in several U.S. states. It also has spread to Canada, Europe, the Middle East and New Zealand.

Reuters Daily Agriculture Brief 270409

Financial Crisis - 1045 GMT
- Fears of a global swine pandemic grow with new infections in U.S., Canada; 103 dead in Mexico. Dampens talks of recovery.
- Oil and stock markets fall, but drug makers gain - World finance leaders say at the weekend there was a "break in the clouds" of the economic storm, but call for more measures
- Japan cuts forecast for economy to shrink 3.3 percent in the year to next March instead of previous estimate of zero growth
- U.S. Federal Reserve expected to hold fire, refrain from fresh policy steps
- Chrysler shows signs of progress with unionised workers in battle to stay alive
- Global warming to hit southeast Asian countries hard
- German consumer sentiment should hold firm going into May as shoppers less downbeat on economy -market research group
- Franch jobless figures, due out on Monday, are not good says Lagarde

GRAINS:

Grain, oilseed markets sink on swine flu fears
PARIS/SINGAPORE, April 27 (Reuters) - Grain and oilseed markets fell sharply on Monday on concern that a swine flu outbreak in North America could reduce demand.
"The drop is related to concerns over the spread of swine flu which could trigger a fall in meat consumption and therefore in animal feed," one French trader said.

Flu outbreak to loom over U.S.-Mexico truck dispute
GENEVA, April 27 (Reuters) - The prompt resolution of a 15-year old dispute over access to U.S. roads by Mexican trucks could be another casualty of the deadly swine flu outbreak, international trade experts said on Monday.
Increased health checks to control the virus, which has killed 103 people in Mexico and infected at least 20 in the United States, could also slow the passage of goods across the busy but troubled U.S.-Mexico border, they said.

EDIBLE OIL/OILSEEDS:

Markets tumble as flu jitters spread
KUALA LUMPUR, April 27 (Reuters) - Asian vegetable oil markets slid on Monday as concerns spread over an outbreak of swine flu in Mexico reduced meat and grains demand.
"Hopefully this is a minor hiccup," said S. Paramalingam, executive director of local brokerage Pelindung Bestari.

COMMODITIES MARKETS:

Flu fears hit raw materials, grains; gold rises
LONDON, April 27 (Reuters) - Oil fell below $49 while copper shed 4 percent on Monday, as most commodity markets were stalked by fear that a deadly flu outbreak spreading from Mexico may become a pandemic and hurt bids to stabilise the global economy.
"Equities are weaker and people are getting out of some of the riskier assets and into havens," said David Thurtell analyst at Citigroup in London.

FINANCIAL MARKETS:

World stocks, oil tumble as flu fears spread
LONDON, April 27 (Reuters) - World stocks tumbled after seven weeks of gains and oil and the euro fell on Monday as concerns intensified the spread of swine flu, which has killed more than 100 people in Mexico, would hit the global economy.
"The swine flu seems to be one of those 'Black Swan' events that has caught the market by surprise. This is a concern as to whether it might impact any potential... recovery chances," said Martin Slaney, head of derivatives at GFT Global Markets.

BEYOND THE HEADLINES:

Indonesian CPO exchange fails to attract interest
JAKARTA, April 27 (Reuters) - Indonesian crude palm oil producers do not want to trade the commodity on an exchange, making it harder to establish a benchmark price in the world's top producing country, the head of the exchange said on Monday.
The plan to trade CPO on the Jakarta Futures Exchange was intended to create a more transparent benchmark, but a lack of incentives is making it hard to appeal to potential users, Hasan Zein Mahmud, chairman of Jakarta Futures Exchange, told Reuters in an interview.

Reuters Daily Agriculture Brief 240409

Financial Crisis - 0705 GMT
- U.S. Treasury Secretary Geithner says global downturn may be easing, conditions in some financial markets improved
- Samsung beats profit, sales forecasts, rival Hynix posts sixth straight quarterly loss
- South Korea averts recession; GDP grows 0.1 pct in Q1 thanks to government stimulus measures
- Obama admin focused on bringing Chrysler, Fiat into partnership, dismisses report of imminent Chrysler bankruptcy
- Bank of America CEO Lewis pressured by Bernanke, Paulson to accept Merrill merger - Cuomo

GRAINS:

CBOT corn, wheat hesitant after wet weather gains
PARIS/SINGAPORE, April 24 (Reuters) - Chicago corn and wheat futures were little changed in hesitant trade, after the previous day's rises on concerns about spring planting delays in the United States due to wet weather.
"A reduction in corn acres and maybe some small switching into soybeans, that is the possible outcome from the wet weather," said Adam Tomlinson, commodities analysts with Rabobank in Sydney.

China seen likely to release corn reserves-report
BEIJING, April 24 (Reuters) - The Chinese corn market anticipates the government may release its reserves soon after the current stockpiling plan is by the end of the month, said an official think tank.
The China National Grain and Oils Information Centre (CNGOIC) gave no details, but said most enterprises surveyed had agreed that the government would sell reserves to maintain a steady supply after farmers in the northeast sold their harvests.

Polish grain prices fall on abundant supply, low demand
WARSAW, April 24 (Reuters) - Polish grain prices are slipping on the back of strong supply and low demand, analysts and producers said on Friday.
Data from the Ministry of Agriculture on April 19 showed milling wheat traded at 549 zlotys per tonne, a drop of 0.8 percent from the previous week, while the price of feed wheat remained unchanged at 463 zlotys.

Australia 09/10 wheat crop about 85 pct sold -trade
SYDNEY, April 24 (Reuters) - Australian farmers are likely to have sold more than 85 percent of the 2008/09 wheat harvest that ended in February, yielding about 21.4 million tonnes, as a weaker currency boosted the grain's appeal, traders and analysts said on Friday.
At most about 15 percent, or around three million tonnes, remained unpriced, stored on farms, they said.

Vietnam effectively lifts rice export curbs
HANOI, April 24 (Reuters) - Vietnam's food industry and government trade officials have agreed to allow rice exporters to resume talks to sign new deals, effectively lifting curbs in place since late February, an official said.
The move looks set to swell a tide of rice supplies after news this week that largest producer Thailand plans to sell 3.76 million tonnes from stocks and signals emerged that India, which competes with Vietnam to be the second-largest producer, could lift a rice export ban after May national polls.

Australia's southeast croplands may stay parched
SYDNEY, April 24 (Reuters) - Chances of good April to June rains in croplands across southeast Australia remain slim, giving farmers little hope of a break in a long-running drought as they head into the planting season.
Australia's Bureau of Meteorology said on Friday the region had a 60-75 percent chance of drier-than-normal weather over the three-month period.

EDIBLE OIL/OILSEEDS:

Palm ends at 34-week high ahead of export data
JAKARTA, April 24 (Reuters) - Malaysian crude palm oil futures edged up to a 34-week high on expectations that data due out Monday would show good palm oil exports during the first 25 days of April, traders said.
"It was a very healthy correction towards the closing. Traders may have realised that the exports rise has been priced in," the trader said.

China warns over high soy, rapeseed imports-MOFCOM
BEIJING, April 24 (Reuters) - China's commerce ministry warned on Friday about potential risks as China's soybean and rapeseed imports in April approach record levels.
The large imports may cause an oversupply in the country because harvesting is about to begin for the new domestic rapeseed crop, while demand for cheaper palmoil is expected to pick up as the weather gets warmer.

Palm prices seen at 2,600 rgt on tight stocks-report
KUALA LUMPUR, April 24 (Reuters) - Malaysia's palm oil prices are likely to touch 2,600 ringgit ($716.2) a tonne and may remain at that level till August as robust demand cuts into declining stocks, the state news agency reported on Friday, citing an industry body.
The inventory drawdown from 2.2 million tonnes in November to 1.36 million tonnes in March was due to an aggressive replanting scheme initiated by the government, Malaysian Palm Oil Board director-general Mohammad Basri Wahid was quoted by Bernama as saying.

Indonesia keeps May palm oil export tax at zero
JAKARTA, April 24 (Reuters) - Indonesia retained its zero percent palm oil export tax in May, while raising the crude palm oil base export price to $560 per tonne from $515 per tonne in April, a trade ministry official said on Friday.
Indonesia does not tax palm oil exports until the minimum reference price hits $700 a tonne.

Reuters Daily Agriculture Brief 220409

SNAPSHOT:

Financial Crisis - 1115 GMT
- British finance minister Darling will deliver the gloomiest budget in a generation, with borrowing at a record high and the economy shrinking at its fastest pace since World War Two.
- China declared its economy has already hit bottom, but wealthy nations saw few signs that the global crisis would end soon in the debt-laden Western world.
- Japanese exports showed a rare sign of recovery in March, government figures showed, suggesting the global slump in trade that has pushed the economy into a deep recession may be easing.

FIRST ON REUTERS:

Reuters alone on massive grain imports into Europe
Reuters correspondent Valerie Parent gave clients the inside track with key data showing that the European Union had allowed the import of more than 500,000 tonnes of wheat into the bloc, clearing the full Q2 volume available under its main import quota. The news confirmed strong competition from other origins, mainly Black Sea, for feed wheat in import-hungry southern Europe and was unmatched by Dow Jones or Bloomberg.

GRAINS:

US corn, wheat firm as weather offsets dollar rise
PARIS/SINGAPORE, April 22 (Reuters) - Chicago corn and wheat futures were higher as concerns about U.S. planting weather outweighed pressure from a rising dollar.
"As wet conditions continue in the United States, disrupting spring sowings, drought in Ukraine and the wider Black Sea region could soon become a focus of attention," French consultancy Agritel said in a note.

South Korea reviews early opening of rice market
SEOUL, April 22 (Reuters) - South Korea is considering scrapping its rice import quota to fully open its market earlier than the 2015 schedule, as it anticipates little increase in imports due to high global prices of the grain, the farm ministry said on Wednesday.
South Korea is obliged to gradually open its rice market and currently imports only a small amount to meet its import quota under a World Trade Organisation agreement, which will be in place until 2014.

Vietnam frees part of blocked rice cargo -shipper
HANOI, April 22 (Reuters) - Vietnam has allowed a rice export company to load 53,500 tonnes for East Timor and Africa blocked by the authorities since late February, a trading company official said on Wednesday.
The Vietnam Food Association has in total halted the shipment of 120,000 tonnes of rice, including 43,500 tonnes bound for Africa, citing violations of export rules, in a move the shipper has said could lead to serious delays and trade disputes.

China imports 27,156 T wheat in March -Customs
BEIJING, April 22 (Reuters) - China, the world's largest wheat consumer, imported 27,156 tonnes of wheat in March from Australia, official figures showed on Wednesday. The amount fell from February's imports of 91,476 tonnes but was up from zero in the year-ago period.
Imports for the first three months of the year were 121,063 tonnes. China imported no wheat in the first three months of last year.

EDIBLE OIL/OILSEEDS:

Asian palm at 1-week closing high on supply concerns
KUALA LUMPUR, April 22 (Reuters) - Malaysian crude palm oil futures rose 1.6 percent to the highest close in a week, rebounding from falls a day earlier as worries about tight global vegetable oil supplies re-surfaced, traders said.
"Every day people talk about low stocks and good demand, so whatever news like Russian cutting palm oil imports (is) having no impact," said a trader at a Kuala Lumpur-based brokerage.

Ukraine Agmin says 2009 sunseed crop may fall 8 pct
KIEV, April 22 (Reuters) - Ukraine's 2009 sunflower seed harvest is likely to decrease to 6.0 million tonnes, 8.0 percent less than in 2008, the Agriculture Ministry said on Wednesday.
The figure was issued before final sowing statistics were collected and could be influenced by the impact of the financial crisis on farmers. The ministry said Ukraine had harvested 6.52 million tonnes in 2008.

Russian palm imports to halve on higher tax -trade
KUALA LUMPUR, April 22 (Reuters) - Russia, a rising vegetable oil buyer, may halve imports of palm oil to 420,000 tonnes this year after it doubles an import tariff from June to protect domestic producers, Malaysian traders said on Wednesday.
The Russian Dairy Union had earlier said imports of tropical oils were usually above 900,000 tonnes over the last five years, with palm oil comprising the bulk of the shipments.

India's '08/09 soyoil imports to rise 9 pct-trade
NEW DELHI, April 21 (Reuters) - India, the world's second biggest vegetable oils buyer, is expected to import about 125,000 tonnes of soyoil a month for the next four months, raising annual imports by 9 percent, a leading importer said on Tuesday.
Soyoil imports in the oil year to October are projected to rise to 828,000 tonnes, up from 759,433 tonnes, said Sandeep Bajoria, chief executive of Mumbai-based trading firm Sunvin Group, who has headed several trade bodies in the past.

Abu Dhabi firm to import more edible oil in 2009
CAIRO, April 21 (Reuters) - The Abu Dhabi Vegetable Oil Company plans to import 80,000 tonnes of oils this year to refine and redistribute in the region, a 10 percent rise from 2008, Colin Smith, the company's general manager said on Tuesday.
Speaking on the sidelines of an oil and fats conference in Cairo, he said that most of the imports would be palm oil, but the total would also include sunflower and soy oil. Smith said the company would import more vegetable oils to cater for higher demand.

FINANCIAL MARKETS:

Mixed earnings steady stocks, support yen
LONDON, April 22 (Reuters) - World stocks steadied as a mixed set of key corporate earnings injected caution among investors about the state of the economy, encouraging them to buy the low-yielding dollar and yen.
"In the medium term we're trying to find a bottom....," said John Haynes, strategist at Rensburg Sheppard.


BEYOND THE HEADLINES:

Top rubber producers may revise down export plan
BANGKOK/SINGAPORE, April 22 (Reuters) - Key rubber producers may review an ambitious plan to take 15 percent of their combined exports out of the market in 2009, hoping China can absorb stocks even during a global economic downturn.
The International Rubber Consortium (IRCo), which groups Thailand, Indonesia and Malaysia, starts a two-day meeting in Bangkok on Thursday after agreeing in December to cut exports as cash prices tumbled from a 56-year high around $3 a kg.

German coffee sales up but costs squeeze roasters
HAMBURG, April 21 (Reuters) - German coffee roasters are increasing sales as the coffee culture becomes fashionable but a retail price war puts them under huge cost pressure, the head of Germany's coffee industry association DKV said on Tuesday.
"Currently brutal retail price competition is taking place," Holger Preibisch told Reuters in an interview.

Greener" palm oil: pricey and not green enough?
AMSTERDAM, April 21 (Reuters) - A drive to improve the green credentials of palm oil, used in foods and cosmetics but tainted for some by links to deforestation, could make it too expensive for shoppers and may anyway be of limited environmental benefit.
The first palm oil certified in the new scheme Round Table for Sustainable Palm Oil (RSPO) unloaded in Rotterdam in November, but some environmentalists said the system was not doing enough to tackle issues such as deforestation and peatlands clearance.

Reuters Daily Agriculture Brief 210409

FIRST ON REUTERS:

Reuters Cairo bureau first to report concerns over asymptomatic bird flu cases


GRAINS:

US soy regains some ground, slow sowing boosts corn
PARIS/SINGAPORE, April 21 (Reuters) - U.S. soybean futures recovered some of the previous session's losses, aided by Chinese demand, while slow planting supported corn.
"Overall the report can be considered bullish for corn and bearish for soy because some switch from corn to bean could be expected," said Genichiro Higaki, head of proprietary fund management team at Sumitomo Corp in Tokyo.

Saudi's Savola Foods to up capacity to 400,000 T/yr
CAIRO, April 21 (Reuters) - Saudi Arabia's Savola Foods will raise its edible oil refining capacity to 400,000 tonnes per year when a new refining unit comes online at the end of 2009, the company's chief executive said on Tuesday.
"The new refinery is coming onstream by the end of this year, which will bring our total capacity to 400,000 tonnes," Chief Executive Zouhair Eloudghari said, adding that was a rise of 100,000 tonnes per year.

EDIBLE OIL/OILSEEDS:

Asian palm losses narrow as supply fears persist
JAKARTA, April 21 (Reuters) - Malaysian palm futures closed slightly lower, recouping most of the early losses thanks to late buying on concerns about tight supplies, traders said.
"The thing is the physical side is still tight. Plantations firms are not in selling mood as they prefer to replenish stock until reaching comfortable levels, before selling more aggressively," said a trader at a Kuala Lumpur-based brokerage.

First zero-duty soyoil to reach India in May-official
MUMBAI, April 21 (Reuters) - India is likely to receive the first consignment of zero-duty soyoil in the third week of May, a senior industry official told Reuters on Tuesday.
India last month scrapped a 20 percent duty on imports of crude soyoil in an effort to lower prices and raise supplies.

US soyoil exports brighter amid demand from India
CHICAGO, April 20 (Reuters) - U.S. soybean oil prices at the U.S. Gulf jumped on Monday on an improved outlook for U.S. exports to India and supply concerns in Argentina, the world's top soybean product exporter, traders said.
The U.S. Agriculture Department said on Monday that India, the world's second biggest vegetable oils importer, bought 40,000 tonnes of U.S. soyoil.

Brazil soy crop 79 pct harvested, sales lag behind
SAO PAULO, April 20 (Reuters) - Brazil's 2008/09 soybean crop was 79 percent harvested by April 18, up 10 percentage points from a week earlier, while forward sales continued to lag far behind last year's, analysts Celeres said on Monday.
Harvesting had practically finished in Mato Grosso, Brazil's top soy producing state, where beans are sown and mature earlier than the rest of the soy belt. It has now gathered 99 percent of its crop and should finish in days.

COMMODITIES:

Nervousness on economy dents metals
LONDON, April 21 (Reuters) - Renewed worries about the U.S. banking sector ushed industrial metals into a second day of losses on Tuesday and dented the market confidence that had driven some commodities up by as much as two thirds this year.
"The recurrent theme is high inventories and weakening demand," said Angus McPhail of British-based investment firm Alliance Trust.


FINANCIAL MARKETS:

Banking worries hit world stocks
LONDON, April 21 (Reuters) - World stocks sold off and Wall Street looked set to open lower after a more than one-month long rally lost some of its immediate fizz due to renewed worries about the state of the banking industry.
"There are still questions about banks' earnings and provisions," said Bernard McAlinden, strategist at NCB Stockbrokers. "The market is likely to give back some more of its gains. It's as positive as you can be to say that we've seen the lows."

Reuters Daily Agriculture Brief 200409

Financial Crisis - 1030 GMT
- Stimulus packages are starting to show results but governments need to be prepared to do more, the head of the Organisation for Economic Cooperation and Development said.
- The German economy fell deeper into recession in the first quarter of 2009, the Bundesbank said in a monthly report.
- China's economy will grow by 8.3 percent this year, slightly faster than the government's target of 8 percent, despite uncertainties about export demand, the government's top think-tank said.
- President Obama says US economy remains under strain. Paul Volcker, Obama's economic adviser, says U.S. recovery will be a "long slog" but rate of decline "is going to slow"
- ECB's Trichet says euro zone econ should start recovering in 2010 after tough 2009
- Bank of Japan Governor Masaaki Shirakawa said Japan's financial conditions remain severe.
- Worst of British recession is over, to return to modest growth in second half of 2010 - Confederation of British Industry

GRAINS:

Soy firm on steady Chinese demand, corn lower
SINGAPORE, April 20 (Reuters) - U.S. soybean futures rose on Monday as steady Chinese demand and concerns over South American supplies continued to buoy the market. Corn fell nearly 1 percent on better planting weather in the United States and weakening oil prices.

Australia grains trade seeks efficient port handling
SYDNEY, April 20 (Reuters) - Australia's wheat export industry on Monday called for a more transparent shipping allocation system to remove bottlenecks that have delayed vessels loading grain at Australian ports in recent months.
The Australian Grain Exporters Association, which represents grain traders such as Cargill Inc, Bunge and Glencore International, said it was willing to work with other stake holders to find a solution.

Russia grain export activity high, home prices low
MOSCOW, April 20 (Reuters) - Russian grain exporters activity remained high last week with some cereal export prices stable and others rising slightly, while domestic prices continued to fall, analysts said on Monday.
Exporters have reportedly switched part of their activities from ordinary soft food wheat to higher protein wheat and feed barley, the Institute for Agricultural Market Studies (IKAR) said.

EDIBLE OIL/OILSEEDS:

Palm firmer but off high of rally on supply
JAKARTA, April 20 (Reuters) - Malaysian palm futures closed slightly firmer, giving up most of the day's gains, as the market consolidated after last week's supply tightness-inspired rally, traders said.
"The market is trying to consolidate waiting for more fresh bullish news to push it up further," a trader at a Kaula Lumpur-based brokerage said.

China looks at Indonesia to boost palm oil stocks
KUALA LUMPUR, April 20 (Reuters) - China, the world's top vegetable oil consumer, is looking to boost its palm oil inventories as stocks have slipped below the usual 400,000 tonne level, traders said on Monday.
China, however, would be buying more palm oil products from Indonesia, the world's top producer as regular supplier Malaysia is facing a supply squeeze.

BIOFUELS:

More Brazil ethanol to enter U.S. via Caribbean
SAO PAULO, April 17 (Reuters) - Greater quantities of Brazil's U.S.-bound ethanol exports will be routed through the Caribbean for processing to exempt it from a U.S. import tariff, a Brazilian agricultural analyst said on Friday.
The United States has ended a loophole that enabled oil companies to import some ethanol tariff-free with credits they earned by fueling aircraft headed abroad, closing a window through which Brazil was able to export its biofuel fuel more competitively.

FINANCIAL MARKETS:

World stocks slip; earnings jitters dominate
LONDON, April 20 (Reuters) - World stocks slipped from last week's three-month highs on Monday while government bonds rose as a big increase in troubled loans at Bank of America and this week's key corporate results made investors nervous.
Bank of America's first-quarter results topped analysts' forecast but non-performing assets more than tripled to $25.74 billion from a year earlier. Its shares fell more than 7 percent in pre-market trade.
"While the reporting season has been better than expected, the results are still very poor indeed, " said Henk Potts, strategist at Barclays Wealth.

Reuters Daily Agriculture Brief 150409

FIRST ON REUTERS:

Reuters clients learn that commodities, not industries, may gain first in recession fight
Reuters financial clients got an early and exclusive insight from a March 11 analysis that the trillions of dollars allocated for global economic stimulus could do a lot to inflate prices of raw materials in the near-term, without boosting industrial activity. The prescient story ran just before oil, metals and grains markets spiked in early March following months of losses. It illustrated how investors could react early to the expected growth in money supply, even if consumer demand stayed weak -- a pattern proven just weeks later as commodities began rallying even as economic indicators remained down. The Financial Times ran an almost identical piece a day after the Reuters story, which was also reproduced financial and economic websites and newspapers like Jakarta Globe.

GRAINS:

Soy firm after surge to 3-month high, corn lower
PARIS/SINGAPORE, April 15 (Reuters) - Chicago soybean futures rose for the fifth straight session on Wednesday as strong Chinese buying and prospects of lower U.S. closing stocks continued to buoy the market.

EDIBLE OIL/OILSEEDS:

Palm off 8-month highs; drawdown fears mount
KUALA LUMPUR, April 15 (Reuters) - Malaysian palm futures fell 1.1 percent on Wednesday, easing from an 8-month high notched earlier in the session as some investors booked profits on a rally fuelled by speculation of a drawdown in stocks.
"Exports were around the same levels (from last month) but there is talk of lower production and therefore, lower stocks," said a trader with a foreign commodities brokerage.

Ukraine Q1 sunoil output rises 27 pct vs yr-ago
KIEV, April 15 (Reuters) - Sunoil output in Ukraine rose by 27 percent to 695,000 tonnes in January-March 2009 compared with the same period in 2008, the State Statistics Committee said on Wednesday.
Sunoil production totalled 242,00 tonnes in March against 216,000 in February. Analysts have said sunoil production is likely to rise to about 2.37 million tonnes in the 2008/09 season from 1.73 million in 2007/08.

India's veg oil imports surge 27.5 pct despite harvest
NEW DELHI, April 15 (Reuters) - India's vegetable oil imports in March rose 27.5 percent as farmers held back rapeseed stocks in the hope of higher prices, while some traders shipped in more oil expecting a rise in the import tax, data showed on Wednesday.
Total imports rose to 641,141 tonnes, the Solvent Extractors' Association of India said, led by a 44.5 percent surge in edible oil imports, which was much higher than trade expectations of a 33 percent rise.

Pakistan goes slow on palm oil buying – official
ISLAMBAD, April 15 (Reuters) - Pakistan has made few purchases of palm oil this month after strong buying in the first quarter led to a glut, and buying is expected to remain slow at present prices, a top industry official said on Wednesday.
"The country overbought in the first quarter and stock levels remain very high. Because of the over-buying there's a local glut," said Rasheed Janmohammad, vice-chairman of the Pakistan Edible Oil Refiners Association. "Buying for second quarter, commencing April, shipment was very slow. Buying has been very very slow in the last two weeks."

Malaysia's April 1-15 palm oil exports up 3.7 pct -ITS
KUALA LUMPUR, April 15 (Reuters) - Exports of Malaysian palm oil products for April 1-15 rose 3.7 percent to 613,677 tonnes from 591,567 tonnes shipped between March 1 and 15, cargo surveyor Intertek Testing Services said on Wednesday.

BEYOND THE HEADLINES:

Marubeni deal may aid stealthy China grain imports
SINGAPORE, April 15 (Reuters) - China's second strategic tie-up with a Japanese trading house may be nominally focused on safeguarding soybean supplies, but the unspoken longer-term aim could be to help Beijing secure low-key corn and wheat imports.
For now, China remains as it has been for centuries, self-sufficient in corn and wheat supplies; it also holds massive state stockpiles able to meet any immediate supply shortages.

World needs extra 10 mln T rice for stable mkt
MANILA, April 14 (Reuters) - Global rice trade must increase by at least 10 million tonnes to stabilise prices in the long term, the International Rice Research Institute (IRRI) said on Tuesday.
It added that the extra volume should come from exporters outside Asia where surplus output is dwindling.

Argentine soy import curb deepens crushers' woes
BUENOS AIRES, April 14 (Reuters) - Argentina's decision to scrap tax breaks on soy imports could further reduce crushing activity just as a poor harvest and hoarding by farmers forces processors to slow operations at their plants.
Soy output in Argentina, the world's top supplier of soyoil and meal, is seen falling up to 15 percent this year and analysts say the government's crackdown on imported beans, mainly from Paraguay, will aggravate a supply crunch.

Reuters Daily Agriculture Brief 140409

SNAPSHOT:

Financial Crisis - 1220 GMT
- Goldman Sachs beats f'casts, to raise $5 billion
- Singapore devalues currency after record GDP fall
- Germany's Merkel summons experts to assess downturn
- ECB's Orphanides says deflation risk has grown
- Greek unemployment jumps to 9.4 pct in Jan
- S.Korea c.bank to inject $2 bln into banks
- Australia business conditions better but jobs go
- New Zealand retail sales rise in Feb., rates still lower
- GM shares fall in Frankfurt amid bankruptcy fears
- Philips swings to loss, speeds up restructure
- Qantas slashes full-year pre-tax profit forecast
- More UBS job cuts seen, 240 axed in Asia-Pacific

FIRST ON REUTERS:

Reuters first on Argentine grains exchange soy crop estimate
Reuters got the weekly grains report of the Buenos Aires Grains Exchange more than two hours before competitors. Argentina is the world’s third soy exporter and the biggest provider of soyoil and soymeal. Chicago futures moved higher after Reuters ran the story about the cut in the Exchange forecast.

GRAINS:

U.S. soy extends gains on equities, China buying
PARIS/SINGAPORE, April 14 (Reuters) - Chicago soybean futures edged higher to extend gains from the previous session, lifted by rising share prices and continued support from Chinese buying.
"Operators will be following closely movements on financial markets this week with the publication of quarterly results by a number of banks," French analyst Agritel said in a note.

EDIBLE OIL/OILSEEDS:

Palm at 8-mth high on talk of robust exports
JAKARTA, April 14 (Reuters) - Malaysian palm futures jumped 6.4 precent to a new high in nearly eight months amid market talk that key data, due to be released tomorrow, will show strong exports in the first 15 days of April, traders said.
"The entire scene is bullish," a trader at a Kuala Lumpur-based brokerage firm said, referring to stronger exports, which may lead to a further drop in palm stocks this month.

Brazil soy crop 69 pct harvested, sales lag
SAO PAULO, April 13 (Reuters) - Brazil's 2008/09 soybean crop was 69 percent harvested by April 9, up 8 percentage points from a week earlier, while forward sales were still well behind last year, analysts Celeres said on Monday.
Harvesting progressed 3 percentage points in Mato Grosso, Brazil's top soy-producing state, where beans are sown and mature earlier than the rest of the soy belt. Harvest reached 94 percent of the expected crop, down from 99 percent a year ago.

FINANCIAL MARKETS:

World stocks power to fresh 3-month high
LONDON, April 14 (Reuters) - World stocks powered to fresh three-month highs after strong earnings from Goldman Sachs, while jitters about other corporate results kept government bonds and the low-yielding yen on a firm footing.
"The markets have a distinctly optimistic tone this morning and are simply disinclined to engage in negative ... thinking," said Manus Cranny, senior market commentator at MF Global Spreads.

BEYOND THE HEADLINES:

Commodities follow stock market but demand is key
NEW YORK, April 13 (Reuters) - Prices of many commodities are cuing off the equities markets' view of the economic outlook, and the correlation should continue until investors get a better read on demand for raw materials.
For years, a key reason for investing in oil, copper and corn futures was the belief they would rise if stock prices fell.

Reuters Daily Agriculture Brief 130409

Financial Crisis - 0745 GMT

- - China economy in a better shape than expected with March industrial output growth exceeding forecasts, premier says
- Japanese wholesale prices fall at fastest rate since 2002 in March
- China planning new economic stimulus package aimed at boosting consumption, state-run paper says
- Bank of Japan will consider boosting capital to guard against possible losses from commercial paper, corporate bonds
- U.S. Treasury tells General Motors to prepare for bankruptcy filing by June 1, New York Times reports

GRAINS:

Soybeans rally on lower stocks; corn, wheat fall
SINGAPORE, April 13 (Reuters) - Chicago soybean futures rose about 1 percent on Monday, extending last week's rally, which lifted the market to a 2-½ month high, as a report predicted lower closing stocks in the United States on strong global demand.
"The soy market is really strong, it's a good buying opportunity," said Kaname Gokon, a manager with broker Okato Shoji Co. in Tokyo. "We have a price forecast of $10.50 a bushel by the end of this week for the May contract."

Russian grain export prices edge up, domestic slide
MOSCOW, April 13 (Reuters) - Russian grain export prices strengthened slightly last week on rising export demand, while domestic prices continued to decline gradually as stocks remained high, analysts said on Monday.
"Last week saw a certain revival of exporters' activity in the southern part of Russia and certain traders raised prices," SovEcon agricultural analysts said.

Iraq port unloading 88,000 t long grain rice
AMMAN, April 13 (Reuters) - Iraq's Umm Qasr port is taking delivery of 88,000 tonnes of long grain Vietnamese, Uruguay and Thai rice that were purchased late last year, shipping sources said on Monday.
They said the port began on Saturday unloading a vessel carrying 26,000 tonnes of Vietnamese rice in addition to two vessels that were already discharging since the start of the month a total of 62,000 tonnes of Thai and Uruguay origin rice.

Vietnam rice crop output jumps 10.8 pct -paper
HANOI, April 13 (Reuters) - The winter-spring paddy rice output in Vietnam's Mekong Delta is expected to rise 10.8 percent from last year to 10.4 million tonnes, thanks to higher yields, beating previous expectations, a state-run newspaper said.
The average yield rose nearly 5 percent to 6.5 tonnes per hectare that produces Vietnam's top quality grain, Monday's Tin Tuc (News) daily quoted Le Van Banh, director of the Cuu Long Delta Rice Institute, as saying.

US wheat made up 15 pct of Iran 08/09 wheat import- report
TEHRAN, April 12 (Reuters) - Iran imported 5.9 million tonnes of wheat in the 2008-09 year, of which about 15 percent came from its old foe the United States, an Iranian business daily reported on Sunday, citing customs data.
Iran stopped buying U.S. wheat after the Iranian revolution in 1979 which ousted the pro-U.S. government. But one official said in November Iran was importing wheat from the United States via intermediaries. His comments were the first official admission that such an indirect trade was taking place.

EDIBLE OIL/OILSEEDS:

Palm ends up 1.6 pct but comes off 7-month high
JAKARTA, April 13 (Reuters) - Malaysian palm futures rose 1.6 percent on Monday on signs of tighter stocks, but were off intraday peaks after touching a fresh 7-month high as investors locked in profits from a recent rally, traders said.
"People think the market is massively overbought. The rally is fundamentally justified on the tightness of stock in the market for vegetable oils. But the way the market moved is too fast," said a trader at a Kuala Lumpur-based brokerage.

Sinograin says Marubeni deal adds soy import channel
BEIJING, April 13 (Reuters) - A cooperation deal between China Sinograin Oils Corp and Japan's Marubeni Corp will give China another channel for imports of soybeans, the head of the Chinese firm told Reuters on Monday.
But the deal does not cover other grains, such as wheat and corn, and Sinograin has not committed to buying any volume from the Japanese trading house.

China soyoil weaker, soy imports to slow down-survey
BEIJING, April 10 (Reuters) - China's demand for imported soybeans slowed this week following a surge in international prices while the soyoil market became weak on ample supply, an official survey showed on Friday.
Traders expected domestic soyoil demand to fall in coming weeks following huge arrivals of soybeans and more supplies from crushers, the China National Grain and Oils Information Centre (CNGOIC) said.

FINANCIAL MARKETS:

Asia stocks up, oil slides on demand outlook
TOKYO, April 13 (Reuters) - Asian stocks rose on Monday on hopes for the global economy, with Taiwan shares hitting a near 7-month closing high, while oil prices slipped below $52 after a dramatic oil demand downgrade by the International Energy Agency.
"The world is watching this, and with stock markets likely to move strongly in response, nobody wants to either buy or sell actively today," said Masayoshi Okamoto, head of dealing at Jujiya Securities in Tokyo.

Reuters Daily Agriculture Brief 090409

FIRST ON REUTERS:

Reuters first with USDA donation of dairy products to help poor, farmers
Reuters was nearly 7 minutes ahead of Bloomberg with an announcement from the U.S. Agriculture Department that it planned to donate 200 million lbs of non-fat dry milk surpluses totaling $160 million to help the poor and dairy farmers hit by high feed costs and low prices. Christopher Doering obtained an exclusive copy of the release from a source nearly two hours before USDA made the announcement. The news sparked buying and higher prices in Chicago Mercantile Exchange milk futures as the move helped trim milk and dairy supplies. An over-supply of milk and inadequate demand has led to milk prices plummeting down more than 50 percent from last year, after hitting life-time highs in 2007.

GRAINS:

Soy at new 2-month high on tight U.S. stocks, demand
SINGAPORE, April 9 (Reuters) - Chicago soybean futures extended gains, rising to a fresh 2-month high, as investors took positions ahead of a crucial U.S. report expected to show a drawdown in soy stocks.
"The soybean market is very strong, people are covering their positions before tonight's USDA supply and demand report," said Kaname Gokon, a manager at broker Okato Shoji Co. in Tokyo.

EDIBLE OIL/OILSEEDS:

Palm at new 6 mth high on supply squeeze, markets
KUALA LUMPUR, April 9 (Reuters) - Malaysian crude palm oil futures gained 2.9 percent to hit a new 6-month high, as investors bet on a sharp drop in stocks amid strength in crude and soyoil markets, traders said.
"The market seems to be buying on rumour of lower stocks and will sell on fact when the Malaysian palm oil board data comes out," said a trader with a local commodities brokerage.

Argentina January soyoil, meal export volumes fall
BUENOS AIRES, April 8 (Reuters) - Argentine soyoil and meal shipments fell sharply in January from the same month a year ago while exports of uncrushed beans rose, the Agriculture Secretariat said in its latest monthly report.
Argentina is the world's top exporter of soyoil and soymeal as well as the No. 3 supplier of soybeans, and overall exports of the oilseed accounted for roughly a quarter of the country's total export earnings last year.

BIOFUELS:

Ethanol adds 0.5-0.8 points to US food prices -CBO
WASHINGTON, April 8 (Reuters) - The boom in corn-based ethanol as motor fuel added from 0.5-0.8 percentage points to U.S. food prices when they were climbing at double the usual rate, said the Congressional Budget Office on Wednesday.
In a report, CBO said larger use of ethanol drove up feed prices for cattle, hogs and poultry and, in turn, resulted in higher retail prices for food.

FINANCIAL MARKETS:

Stocks up on Japan plan but gains curbed
LONDON, April 9 (Reuters) - Global equities edged higher on Japan's larger-than-expected economic stimulus package but gains were muted as investors searched for further signs of optimism in the financial crisis hitting economies from Australia to Ireland.
"It is a bear market rally, not the start of a new bull market. I don't think there is much good news coming. Most of the good news is out already like the Obama plan, the Geithner plan and the Bernanke plan but they will take three to six months to work -- if they work," said Philippe Gijsels, senior equity strategist at Fortis in Brussels.

Reuters Daily Agriculture Brief 080409

FIRST ON REUTERS:

Reuters makes a big splash with U.S. planting, price outlooks

The exclusive grain price outlook from the Reuters Food and Agriculture summit got big play among U.S. grains and oil traders. Brokerage houses found it valuable enough to circulate in notes to their clients as soon it hit the wire. Traders quoted the Reuters story in their daily wires distributed before the Chicago Board of Trade markets opened on March 18, fueling more speculation on what USDA was going to say in its March 31 planting intentions report. Trader expectations that the USDA would forecast farmers to plant a couple million less corn acres in 2009 versus a year ago, got the direction right and were near the mark. They also helped keep CBOT new-crop December corn prices supported above $4 a bushel before the report was released on March 31.

GRAINS:

US grains extend fall on weak equities, firm dlr

PARIS/SINGAPORE, April 8 (Reuters) - U.S. grain and soybean futures extended their falls as equities and oil continued to pull back and the dollar to climb amid investor nervousness over the U.S. earnings season getting underway.

"We are seeing global equity markets under further pressure," said Garry Booth, a trader at commodity brokers MF Global Australia.

Asia Grains-China seeks June soy, Aussie wheat sales brisk

SINGAPORE, April 8 (Reuters) - Chinese buyers are seeking June delivery soybeans from South America this week, while Australian exporters are eyeing wheat buyers for the last quarter after selling out until September.

Black Sea wheat continued to make inroads into Asia with more sales likely to Indonesia and Vietnam after initial purchases in the past few weeks.

EDIBLE OIL/OILSEEDS:

Palm steady as bullish stocks offset weak crude

JAKARTA, April 8 (Reuters) - Malaysian palm futures were steady by midday, bouncing back from early falls after a bullish Reuters poll on end-March palm stocks offset downward pressure from weaker crude oil prices, traders said.

"After Reuters poll came out, the market inched up from negative territory. The poll was a bit bullish because our minister only put 1.5 million tonnes," said a trader at a Kuala Lumpur-based brokerage.

POLL-Malaysia's March palm oil stocks seen at 20-month low

KUALA LUMPUR, April 8 (Reuters) - Malaysia's March palm oil stocks are likely to slide 12.8 percent to a 20-month low, slowing slightly as exports remained flat and output notched weak growth after months of decline, a Reuters poll showed on Wednesday.

March's inventory level in the world's second-largest producer is seen at 1.36 million tonnes from February, the lowest since July 2007, feeding fears of a squeeze in global vegetable oil supplies, according to a median estimate of five plantation houses.

FINANCIAL MARKETS:

Stocks fall, yen rises on earnings worries

LONDON, April 8 (Reuters) - World stocks slipped for a third session in a row and government bonds and the low-yielding yen gained as poor earnings from U.S. aluminium group Alcoa sparked concerns about other corporates.

"The market is taking a reflective pause ... Obviously Alcoa was a massive disappointment and was worse than expected," said David Buik, partner at BGC Partners.

BEYOND THE HEADLINES:

India March edible oil imports seen up 33 pct

NEW DELHI, April 8 (Reuters) - India's edible oil imports are expected to rise by a third in March from a year ago because of low prices, further swelling stocks built with heavy purchases in recent months, leading traders and importers said.

The average of estimates from 14 leading traders across India showed imports in March were likely to rise to 561,600 tonnes, with figures ranging from 500,000 tonnes to 650,000 tonnes.