Published:
Tootoo.com Looks at Causes of Reduced Cooking Oil Prices in China
BEIJING, Aug. 21 /Xinhua-PRNewswire/ -- Tootoo.com today releases its
thoughts on the decreasing price of cooking oil inChina. Tootoo.com believes
the fall of cooking oil prices is caused by the decreasing international oil
prices. The yield decrease of soy in theUSA,Brazil andArgentina is caused
by bad weather, which also decreased the export of soy, so the price of soy
( http://www.tootoo.com/w-Agriculture/ ) in the international market increased
sharply last year. However, the weather in the three main soy exporting
countries has improved since July this year, which is good for the growing of
soy, meaning the price of oil futures falls back because of the increased
supply of soy.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080605/CNTH022LOGO )
Argentina, as one of the main soybean producing countries, recently
attempted to introduce a new policy on the export tax of soybean, which caused
farmers to organize large-scale demonstrations at the beginning of this year.
The government had to abolish the disputed export tax of soybean due to the
protests, which also contributed to the falling international soybean prices.
On the other hand, it's simply not that economical to use corn or soybean to
make energy because of the falling oil prices. This causes the export of most
corn and soybeans ( http://www.tootoo.com/buy-soybeans/ ) and also increases
the supply of soybean on the international market.
At present, the trade price of various kinds of oil is falling inChina,
such as bean oil, palm oil, oil futures and cooking oil. According to the
price quotation of bean oil and rapeseed oil inJiangsu Province, the price
falls compared to the price of July. The price of bean oil falls from 16,000
Yuan per ton to 9,000 Yuan per ton from March to August.
Agriculture information in Tootoo.com ( http://www.tootoo.com/ )
demonstrates that trans-national corporations take about 80% of the soybean
imports, so the national price of soybean oil changes with the international
price. Take theNanjing market for example, soybean oil accounts for 80% of
the cooking oil market, while we can also say the price is determined by
foreign influences.
Chinese corporations have no complete right on the oil price due to the
excess dependence on imported soybeans. What makes people puzzled is why the
corporations don't use Chinese soybeans instead of the imported soybeans, when
China is also a main producer of soybean.
"The cost is too expensive, we should pay more than twenty or thirty Yuan
for every 50 kilos," said a manager of an oil company. The low price of
imported soybeans is caused by the high export subsidies in theUSA. The
export subsidies reached about 19 billion last year.China abolished the
agriculture tax and unveiled the subsidy policy. Data from the ministry of
agriculture shows that the national output of soybean is about 14.5 million
tons while the imported soybean reached about 32 million tons in 2007. The
import volume takes about 68.8% of the demand quantity, so the international
price determined the national price of oil.
SOURCE Tootoo.com
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