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Turkey has contracted a further 70-75,000 tonnes of sunseeds within the last 4 weeks, 24,000 tons of which bought by Trakya Birlik alone in two separate tenders. The prices varied between $648-663 CIF Marmara basis. We put total Turkish sunseeds imports since the issuance of the import licences at 450,000 tons. Turkey will buy a further 300,000 tons of old crop sunseeds, around 100,000 tons more than the 650.000 tons tariff quotas. The pipeline stocks are very low for the crushers, refiners and distributors alike.

Industry The consumer demand stayed very flat in the last 4 weeks with some activity on the distributors side in the last few days. Domestic refined edible oil market remains depressed at the shelf, with several refiners offering in store trade activities in order to maintain sales numbers. Overall domestic crude oil consumption remained around 45,000 tonnes/month within the last 4 weeks.

Market Developments Domestic crude sunoil prices went up from $1,655 to $1,665 in the last 4-5 weeks. The trade has been weak and purchases had been mostly hand-to-mouth with general bearishness of the sun complex. The last week saw some trade activity with major refiners coming to buy into the crude sunoil market. Currently, crude sunoil is trading around $1,665-1,670 ex-works with moderate demand. There is some licence trade between small and big crushers at around $130/mt. The top graph on the right shows the development of domestic crude sunoil price between the last day of 2010 and today. As known, the supply of domestic crude comes 100% from imported sunseeds with zero import duty from mid-February. The bottom graph on the right show the development of CIF Marmara sunseeds price for the same period. The straight line through the charts show the time of issuance of duty free licences to the industry. The parallel movement between charts from 18th February 2011 onwards, show the direct influence of world sunflower seed prices on the domestic crude sunoil market.

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Corn oil demand in Turkey came sharply down this season with higher price differential with sunoil landed cost. Corn oil is rapidly losing market share to sunoil. Also, lack of material and high prices pushed down the market share of rapeoil drastically in the first 5 months of 2011. In the last 4-5 weeks international corn oil prices on CIF Turkey basis came down to around $1,675/mt with China being on the supplier side. China came back into the international corn oil trade for the first time since the spring of 2008. Several cargoes of China origin crude degummed and refined corn oil were sold to Turkey & North Africa in the last few weeks.

The GMO issue continues to be on the agenda for Turkey. Turkish Food & Drinks Associations’ Federation is still trying for permission to import GMO products for “food usage”.

Refined sunoil exports to the Middle East is growing rapidly from Turkey with several refiners in the South East of the country resuming production after almost 2 years. We predict the Turkish exports of refined packaged edible oils to reach 350,000 tons in September-August 2011-12, some 100,000 tons higher than the previous season.

International Market Developments

Dorab Mistry - CIOC 2011 Dorab Mistry who spoke at China Edible Oils & Oilseeds Conference held in Beijing on 12-13 April said, sharply higher crude palm oil production in Indonesia even as India's palm oil imports decline may combined, to push palm oil prices below 3,000 ringgit in the next few months. Mistry also revised up his forecast for this year's palm oil production in Indonesia to 25 million tons from an earlier forecast of 24. Soyoil prices from S. America will likely continue to trade at a $200 premium over palm oil until August, he added. "After August or whenever soyoil usage in U.S. biodiesel production is substantially raised, we shall see palm oil prices rally and begin their journey towards 4,000 ringgits/ton," he said.

India India's vegetable oil imports in March fell 31% from a year earlier to 435,735 metric tons, the Solvent Extractors' Association of India said Friday. Edible oil imports during the fifth month of the marketing year that began Nov. 1, 2010, slipped to 412,088 tons from 612,293 tons, SEA said. India is the world's second-largest vegetable oil importer after China importing more than half its usage. The following table shows the comparative details: March to March 2011-2010 (in mtons) Total Vegoils 435,735 - 632,868 Crude Palm Oil 179,959 - 311,818 RBD Palm Olein 73,768 - 95,227 Soyoil 81,131 - 145,996 Sunflower Oil 76,230 - 52,744

China China's soybean imports in April will likely reach 4.28 million metric tons, the Ministry of Commerce said Tuesday in an upward revision of an earlier estimate. The import volume, if realized, would be 22% higher on month. While the regular forecast is usually lower than actual import figure as it doesn't include all cargoes, the ministry's forecast for March was about a tenth higher than the 3.5 million tons actually imported. The ministry issues the estimates twice a month. China may import 53-54 million tons of soybeans this marketing year, slightly lower than the 54.5-54.8 million tons previously forecast, an official with state oils and grains giant Cofco Ltd. said.

Argentina Argentine President Cristina Fernandez on Wednesday reiterated plans to limit the ability of foreigners to purchase farmland. Fernandez said she would submit a bill this year to "protect the jurisdiction of land will continue to belong to the Argentine." Fernandez made a similar announcement in March when she said, the bill will not be "xenophobic or chauvinistic.” Fernandez told Wednesday that Argentina won't be "inventing anything new" with this bill and that it will be similar to related laws already in place in other countries. Last year, Brazil placed limits on foreign ownership. In Argentina, about 7%, or 20 million hectares, of the country's productive farmland is in foreign handas already, according to the Argentine Agrarian Federation.

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Black Sea Grain 2011

8th Black Sea Grain conference was held in Kiev, Ukraine on 13-14 April 2011 with some 600 delegates from 53 countries. The following messages were given by the speakers who presented at the conference.

Dan Basse American agro market analyst Dan Basse who spoke for “AgResource Co.”, Chicago said high volatility will stamp its mark on year 2011 and the bullish note on grains and oilseeds will not be temporary in view of growing world demand, but continue to be with us. Basse said, if either of the world’s big crops have a road accident in 2011, then the prices might rise to unprecendent levels, where he asked the question “How high is high?”. Basse also pegged new crop wheat prices at $240-250 FOB level.

Dmitri Rylko Dmitry Rylko, who spoke for IKAR, Russia said, if total Russian grain crop for 2011 turns out to be 84 million tons then the country can export some 9 million tons of grain in 2011-12. He drew attention to bad state of crop especially in the Volgo region and better than expected output in he south of the country. Rylko said, whether any grain exports will be allowed by Russian government remains to be seen and added that, several traders went bankrupt since the ban and there is severe shortage of cash for storage and insurance of grains.

Sergey Feofilov Sergey Feofilov who spoke for organisers “UkrAgroConsult” said on the sidelines of the conference, opaque government policies and unexpected intervention in Ukraine's agricultural market are the largest inhibitors of the development of the country's agricultural sector. Feofilov said, "The decisive factor for the improvement of Ukrainian agriculture could be further clarification over the role of government in agriculture."

Faik Genç Faik Genç who spoke for “AgriPro”, while giving Turkish oils & oilseeds trade balances said, Turkey is the sole dedicated sunseed/sunflower importing country in the world, regardless of price. Turkey accounting for 7% of all world sunoil usage lying 3rd only after EU-27 and Russia; Genç said, Ukraine being almost the only sunoil exporter in the world, it is a game of “one seller and one buyer”. On the price outlook, he argued India will be the deciding factor forthe new crop, with 3 million tons of higher sunseeds production than last year and Argentina coming into sun complex as a player after a long time, will put pressure on the sun complex. He said $1,350 FOB levels for crude sunoil is not sustainable for until July when Turkey will show fresh demand. Genç predicted, $425-450 FOB levels for sunseeds and $950 FOB for crude sunoil, come next October.

Alexei Vadaturskiy “Nibulon”, Ukraine’s largest grain exporter said they have put investments in infrastructure on hold after government restrictions on grain exports interfered with project financing, Nibulon's Vadaturskiy said, the company is coming under pressure to sell parts of its infrastructure network to the government and financing problems have forced it to stop work on a program to revive the Southern Bug River as a transport waterway. "Our program is a typical example of how government intervention is hurting Ukraine's grain sector, we have stopped development of network of elevators, even though most of the equipment has already been bought. "The current outlook for investment in Ukraine isn't very positive." With Kiev imposing quotas limiting grain exports this season.”he said.

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Price Quotations (US$/TL 1.516) Price quotations as of Friday, 22nd April 2011 are as follows: AgriPro Limited

Import: - Sunseeds (44 bss) - CIF Marmara - $ 670 - Rapeseeds (42 bss) - CIF Marmara - $ 730 - US Soybeans - CIF TR - $ 535 - S. America Soybeans - CIF TR - $ 546 - RBD Palm Oil - CIF TR $ 1,240 - RBD Palm Olein - CIF TR $ 1,245 - RBD Palm Stearin - CIF TR $ 1,200

- Black Sea Crude Sunoil- CIF Marmara/Mersin - $ 1.360/$ 1.370 - S. America Crude Degummed Soyoil - CIF TR - $ 1.350 - USA Crude Degummed Corn Oil - CIF TR $ 1,715 - China origin Crude Degummed Corn Oil – CIF TR$ 1,680

- Black Sea 36 protein Sunmeal - CIF TR - $ 280

Domestic: - Crude Sunoil - ex-works Thrace – 2,525 TL - Crude Rape Oil - ex-works Aegean/Çukurova - $ 1,750 - Crude Soyoil - ex-works Aegean/Çukurova - $ 1,450 - Crude Corn Oil – ex-works - Southern Marmara – 3,050 TL - Semi-refined Cotton Oil – ex-works Çukurova – 2,500 TL - Crude Hazelnut Oil – ex-works Afyon – 2,750 TL

- 28 protein Sunmeal – ex-works Thrace/Agean/Çukurova - 365 TL/390 TL/390 TL

- Rapemeal – ex-works Thrace/Agean/Çukurova - $ 375 - Soya Küspesi – ex-works Agean/Çukurova - $ 530 - Cottonmeal – ex-works Çukurova - 490 TL

© Copyright 2011 AgriPro Limited This report is personal to the individual recipients. Any reproduction or redistribution of contents without written consent of AgriPro Ltd. is strictly prohibited. Any violation of our copyright will be prosecuted. The information and analyses given in the report are believed to be reliable. However we cannot be held responsible for accuracy of the information in our reports and forecasts, or our forecasts and/or price indications to be taken as basis to any commercial contract. Tel +90 212 236 0345 Fax +90 212 236 0385 email info@agripro.com.tr web www.agripro.com.tr