• Bloomberg reported that India has reduced the import duties on sunflower oil and soybean oil. The government has cut the basic import duties on crude soybean oil and crude sunflower oil to 7.5% from 15.0%. The effective duty including agriculture, infrastructure and development cess and social welfare tax will fall to 30.25% from 38.5%. As for refined soybean oil and sunflower oil, the basic import tax will be reduced to 37.5% each from 45% each previously. As such, total import duty for refined soybean oil and sunflower oil will decline to 41.25% from 49.5%.

• According to Bloomberg also, the US Environmental Protection Agency is set to send a draft of biofuel blending quotas to the White House for review. EPA officials have advised industry players and stakeholders that a review of the plan by the White House is imminent, setting the stage for the agency to formally propose how much renewable fuel must be mixed into gasoline in diesel for 2021E and 2022F, within weeks. Some lawmakers have been told to expect relatively unchanged requirements or a slight reduction, which would be a blow to producers of corn-based ethanol and soy-based biodiesel.

• Argus Media reported that Malaysia’s imports of used cooking oil hit an all-time high of 67,000 tonnes in June and 283,000 tonnes in 1H2021. The purchases supplemented domestic biodiesel production. Indonesia doubled its sales to 79,000 tonnes to Malaysia in 1H2021. Vietnam’s sales of used cooking oil to Malaysia rose to 34,000 tonnes from 10,000 tonnes while Thailand’s exports increased to 28,000 tonnes from 2,000 tonnes. Malaysia was a net importer of used cooking oil in June, bringing in 9,000 tonnes more than it sold.

• Reuters reported that Argentine farmers are expected to sow more corn instead of soybean this season. Soybean plantings are expected to fall to a 15-year low due to the country’s export tax policy and lack of a regulatory framework for genetically modified beans. The Rosario Grains Exchange expects Argentine farmers to sow an all-time high of 7.84mil hectares of corn this year while soybean fell to 16.4mil hectares, which is the lowest since 2006. An industry player said that corn has benefited from the new technology that allows the farmers to plant later in the season. In the past, farmers were only able to plant corn in September and hope for rains in December. But now, the farmers can plant half in September and half in November. An industry expert said that late plantings allow corn yields to be steadier during dry seasons.

• Bloomberg reported that India has allowed the imports of 1.2mil tonnes of crushed de-oiled genetically modified soybean meal to be used as poultry and fish feed. The shipments are allowed until 31 October 2021. The move will benefit poultry farmers and fishermen.

Source: AmInvest Research - 30 Aug 2021