Posted on 08/21/2009 7:45:53 AM PDT by h20skier66
News out of China reports China National Cereals, Oils & Foodstuffs Corporation (COFCO) has laid plans to erect its second largest soybean processing plant in the country's southwest region. The company's second largest plant is expected to begin construction in the month of September and once complete will have annual capacity of 1.2 million tonnes (44 million bushels). Interesting enough is the location, away from the country's major soybean production region and nearer port facilities but equally interesting is how competitors of COFCO, both Sino Grain and Jilin Grain Group are also laying plans to open "new" facilities.
Allendale research data estimates annual per capita vegoil consumption for China of 37.7 pounds for 2009/10 and most definitely trend building from levels of 32.6 pounds in 2005 suggesting annual rate of growth of 3.12%. Of equal importance is the flavor of choice by Chinese consumers to overwhelmingly prefer soybean oil over palm oil by 67% for 2009/10 vs 47% in 2005/06 based on annual consumption data. Soybean oil consumption is the largest within China and holds a 2:1 ratio edge over rapeseed oil and 2.57:1 edge over palm oil suggesting the divergence between soyoil consumption and the lesser two continues to widen. China's vegoil consumption is most definitely encouraging to soybean exporting countries as China's annual soybean consumption is 3.46 times greater than production while wheat, rice and corn production is marginally higher than consumption.
(Excerpt) Read more at commoditynewscenter.com ...
Soyoil production for foodstuffs, or for biodiesel use in case of a future oil embargo?
Now where did I put that tinfoil...?
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