Beijing, Mar. 17 - China's biggest grain and oil trader, COFCO Ltd., said Monday it will expand its edible oil production to meet market demand.
The company aims to produce 42,000 metric tons of edible oil this month and release all of it to the market soon, it said in a statement published on its Web site.
The company supplied the market with 60,260 tons as of March 1, up 22% on year, it said.
China's vegetable oil prices surged this year on tight supply before a recent downward correction, triggered by worries of increased supply urged by the government.
Analysts said overall tight supply of vegetable oil due to biofuel development and rising crude oil prices will continue to support prices at high levels but downward risks exist amid the government's price control measures.