At last after a long time, Malaysian crude palm oil price drop as much as 4.1% on Tuesday 12 August to hit a new 10-month low as wavering crude oil prices and expectations of higher worldwide stocks pressured vegetable oil costs. Oil prices have slid just about 13% this year and drop more than 40% from their March peak. On the other hand, traders have expected that there is a possibility to fall more even further and it may reach the 2,500-ringgit levels soon.

The benchmark October agreement fell on the Bursa Malaysia Derivatives Exchange as much as 110-ringgit to 2,561-ringgit or$770.9 each ton and it breaks well history a key resistance level of 2,600-ringgit for the first time of the year. That was the lowest price level since October 9, 2007 for the palm oil.

A trader with a foreign brokerage informed, “Crude oil sharp fall was the trigger point and it was compounded by news of defaults from India and China,” he also added “Now, even Pakistan appears to be delaying some part of its Ramadan purchases.” But another trader opinion was,” Exports may be recovering but we are not going to see the fantastic increases. There is too much palm oil around”.

At the present time Malaysia’s crude palm oil stocks dropped 2.8% to 1,977,060 tons in the month of July. It was more than the 2.2% fall expected in a Reuters’ poll, although still remained close to record levels.

Vegetable oil dealers and traders were waiting for an update on the US crops from the U.S. Agriculture Department due later on Tuesday. It was one of the most significant of this year since it contains the first US soy and corn yield estimates based on authentic field surveys.

The average analysts’ estimates pegged the US soy crop at about 3.001 billion bushels, mostly unchanged from USDA’s July calculate of 3.0 billion. On the other hand US soy oil for September delivery cut down nearly 1% in Asian regions since traders awaited the USDA’s estimated report. In the month of January soy oil contract on Dalian Exchange, China fell 0.8%. The same thing is happened in Indonesia, there crude palm oil prices dropped up to 5.5% on this Tuesday, tracking vacillating Malaysian market. However trading was thin with players ran away on the sidelines and waiting prices to become stable.

Last Monday the state marketing centre in Jakarta sold crude palms oils at 6,869 Rupiah or $0.749 per kg, a drop of 1.2% from 6,953 rupiah per kg and palm oil refiners offered RBD palm oil for cooking oil, at 7,500 rupiah per kg, which down from 7,750 rupiah per kg.The palm oil producers and manufacturers in North Sumatra’s Medan home to Belawan port that is the main port for palm oil exports, sold crude oil at 6,740-6,830 rupiah per kg on Tuesday, a drop of up to 5.5% from 7,137 rupiah per kg on Friday. Though a dealer of local plantation firm in Medan said “It doesn’t matter now whether it’s cheap or expensive, players just want stable prices to take position,”.

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It is very shameful for U.S.A that many corporations make large profits and pay nothing to support their country though these companies reported trillions of dollars in sales. A recent study of Congress shows that like other countries in U.S.A most of the corporations and foreign companies doing their business without pay no federal income tax. This new study by the Government Accountability Office, waited for to be released on 12 August Tuesday. It finds out those two-thirds of American. Corporations paid no federal income taxes between 1998 and 2005; on the other hand around 68 percent of foreign companies continue their business in the U.S.A avoided corporate taxes above the same time.

But nowadays there is increasing a good number of limited liability corporations as well as so-called “S” corporations pay their taxes under individual tax codes. On the other hand fifty percent of all business income in the U.S.A now ends up going through the under individual tax code.

The study did not identify or investigate why corporations were not interested to pay federal income taxes or corporate taxes, on the other hand it did not discover any corporations by name. The study said companies may escape paying such income taxes due to operating and management losses or on account of tax credits.
Moreover around 38,000 foreign corporations had no tax liability in the period 2005 and about1.2 million U.S. companies paid no income tax. Those companies combined had $2.5 trillion in sales. On the other hand, around 25% of the U.S. corporations not paying any corporate taxes were considered large corporations but these had no less than $250 million in assets or $50 million in receipts. The study said that the analyzed data from the Internal Revenue Service and it scrutinized over110, 003 tax returns from among more than 1.2 million corporations continue business in the U.S.A.

There is a complain about companies abusing transfer prices and it happen on amounts charged on transactions between companies in a group, for example a parent and subsidiary. Most of the cases, multinational companies are able to manipulate transfer prices to shift income from higher to lower tax jurisdictions, cutting their tax liabilities. But now the U.S government takes step for the big corporations to pay their fair share.

Iraq is going to be resumed oil exploration after a break of just about twenty years due to UN sanctions against the Saddam Hussein government. Its postwar oil bonanza remains a mirage. It has the second or third-largest reserves which makes it the heart and huge bulk of the country economy. U.S experts predicted that Iraq’s oil production may triple to an enthusiastic 6 million barrels every day by 2010.

There are four western oil production companies are in the final stages of negotiations the last month on contracts that they will back to Iraq after losing 36 years their oil concession to nationalization at the time President Saddam Hussein rose to power.

A ceremony program to mark the occasion has been held near Nasiriyah which is 350 K.M. south of Baghdad. There exploration teams with experts will now attempt to disclose oil deposits that will make able Iraq to double its proven oil reserve which is now containing at 115 billion barrels of crude.

At this time, Iraq wants to boost up its output by 500,000 barrels every day from the running average production of 2.5 million bpd and it would be around close to the amount being pumped before the US-led invasion of March 2003.

BP, Total, Exxon Mobil and Shell along with Chevron as well as several number of smaller oil production companies’ contact with Iraq’s Oil Ministry for no-bid contracts to service Iraq’s largest oil fields.

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