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Russian imports of soyabeans and palm oil maintained their recent high levels in January, reaching 51,100 tonnes and 63,800 tonnes, respectively. High domestic sunflower oil prices currently 45,000 roubles ($1,875) per tonne, ex-works supported strong demand for imported palm oil despite administrative attempts to stem the tide.
From the start of the season in October 2007 to the end of January 2008, Russia imported 267,600 tonnes of palm oil. The entire proceeding season (October 2006-September 2007) saw imports of 481,400 tonnes. Vegetable oil producers could potentially use around 200,000 tonnes of imported palm oil this season to substitute domestic sunflower oil.
Total palm oil imports this season could reach as much as 650,000-700,000 tonnes. Soyabean imports from October 2007 had already reached 143,800 tonnes by the end of January more than quadruple the amount in the entire preceding season, when only 33,800 tonnes arrived in Russia.
The sharp increase in imports is a result of the launch of full-scale processing at the 'Sodruzhestvo Soya' (Commonwealth Soya) plant in Russia's western exclave of Kaliningrad.
The company plans annual output of 700,000 tonnes of soyameal and 202,000 tonnes of soyabean oil. Soyabean oil imports have also increased sharply this season, although at a slower rate than soyabeans because of high world prices. The sharp decrease in soyameal imports in January was due to seasonal factors. Imports are expected to rise again in February and March.

Copyright Reuters, 2008

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