today closed at 1.285, it is testing the bottom limit.

- Last week, Bloomberg reported that soybean crushers in China are buying more domestic supplies of soybean from state auctions after the cost of imports surged on the back of the drought in the US.

- In two sales of local soybeans last week, crushers bought 99% of the 394,500 tonnes of soybeans offered. This was the highest take-up rate since 2010.

- Soybean crushers bought more local soybeans this time around as the prices were lower than international prices. In the past, domestic prices of soybean in the auctions had always been higher than international prices.

- Bloomberg reported that the average price fetched in the auctions last week was 4,002 yuan per tonne (US$634/tonne) compared with the current price of 4,570 yuan per tonne (US$723/tonne).

- With the increase in the sale of domestic soybean by the Chinese government, it was also reported that importers would buy less soybean from the US. In the first five months of the year, China's imports of soybeans rose 15.6% YoY.

- We believe that the sale of soybean from state reserves at low prices would provide soybean crushers like Wilmar International with temporary relief.

- Soybean crushers in China have been facing challenging operating conditions due to the rise in soybean prices and difficulties in increasing selling prices of soymeal and oil.

- In addition to this, there has been an overcapacity in the soybean crushing industry in China.

- It is estimated that the total soybean crushing capacity in China was 110mil tonnes as at end-2011 versus the actual amount crushed of 50mil to 60mil tonnes.

- It remains to be seen if Wilmar's soybean crushing and refining division would record a smaller pre-tax loss in 2QFY12 compared with US$52.5mil in 1QFY12. The group is due to release its 2QFY12 results before or on 15 August 2012.

- We are maintaining our positive stance on the plantation sector. We reckon that CPO prices would be supported by surging soybean oil prices and positive demand for palm oil.

Source: AmeSecurities

http://klse.i3investor.com/blogs/journeytowealth88/14458.jsp?tag=y

By looking at past years price movement, Olam tend to have price risen on the 3rd & 4th Quarters. It looks like it is rebounding....

yes, it is in my watchlist now.

Anyone trade about this stock before? It is been rated BUY with high price target (65% upside) by AmFraser.

Hi 333a110, very useful information, thanks. We understand Wilmar is a good company and we hope once the Soybean production increased, Wilmar's soybean plant will be utilized at full capacity.

I have added Wilmar to my watchlist and will check it out from time to time.

The main reason of Wilmar's profit dropped was due to the over-capacity of Soybean crushing plant in China due to tight supply of world Soybean production. The supply of world Soybean is getting tight for the coming quarter.

I believe Wilmar's profit will be impacted for Q2 2012 as well.

Hi, thanks for the insight. So, we should expect some rises on SGX right?

Em, just did some search but don't see any news abt the 2Q result. However, since it is at historical low, a little good news will help :) Let's keep an eye on it.

This is like a "bonus" for those foreigner who works in Singapore.

I prefer Golden Agri Resources. OCBC price target $0.81, it is at strong move.

http://sgx.i3investor.com/quoteservlet.jsp?sa=ss&q=GoldenAgr

It rated SELL by Maybank KE today. Is it time to take profit while the price is still high?