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Things you should know right now about Wilmar's 3Q13 results

Profit from oilseeds, grains at quarterly high.

According to CIMB, the oilseeds and grains division has stayed profitable for the fifth consecutive quarter in 3Q and recorded its best quarterly earnings for the year. 

"We gather that crush margins in China has remained strong in 4Q due to the shortage of soybean in the country," CIMB said.

Here's more from CIMB:

This was caused by the delayed arrival of soybean from South America and the shortage of alternative meals. It is also seeing less activity from financial traders who import soybean, for the purpose of raising financing in China.

These soybeans would be subsequently sold at a discount in the local market, causing price distortions and leading to lower crush margins achieved by the industry since late-2011.

As such, the group is confident that this division will continue to do well in 4Q. However, current crush margins may decline when the tight soybean supply issue eases, possibly in December.

The rice and flour business continues to post higher volumes in 3Q but has yet to contribute materially to earnings as the group is still building up these businesses. Although the current strong back-to-back crush margins may be temporary, the group is overall more positive on the prospects of this industry in the coming year.

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