Monday, November 29, 2010

soy crushers

Supply chain managers: may see weakness as soy crushers have suspended output, as the PRC govt's moves to roll back agricultural price increases cuts into crushing margins…

Noble’s Nantong Laibao Grain Protein Co is suspended until Dec 28. Noble ranks among the top 10 soybean crushers in China, with est installed soybean crushing capacity of ~4m tpa, behind only Wilmar and China Agri. Analysts had been tipping recovery of China crushing margins as one of the share price catalysts…

Negative news follows Friday’s report that Noble may face problems selling gasoline after Nigeria said it would stop subsidising marketers who import gasoline from Noble, as well as the surprise departure of its star gasoline trader…

Similarly, Louis Dreyfus' Zhangjiagang crushing plant will not resume pdtn until Dec 10. This may have implications for Olam, which is supposedly considering a business collaboration with Louis Dreyfus…

No mention of Wilmar suspending soy crushing output, but as the market leader in China, it is unlikely to remain unscathed.

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