• Bloomberg reported that the Biden administration is preparing to cut biofuel quotas for 2020 and 2021E amid pressure from refining interests and their Democratic allies in Congress. The Environmental Protection Agency is also on track to propose a modest increase in the amount of plant-based fuels that must be mixed into gasoline and diesel in 2022E. Under the draft proposal, the overall renewable fuel requirement for 2020 – previously set at 20.09bil gallons – would be reduced by as much as 15%, sources said. The proposed target for 2021E would also drop under the draft although a modest increase is planned for 2022F.

• The Star cited Malaysia’s Human Resources Minister Datuk Seri M Saravanan as saying that the freeze on the hiring of foreign workers including domestic helpers, will be extended until 31 December 2021. Saravanan said that any decision to bring in foreign workers would be announced by the government after discussions with the National Security Council and other relevant ministries.

• The Global Times quoted China’s director at the US Soybean Export Council as saying that the impact of Hurricane Ida on US grain exports was not as great as imagined, and Chinese companies have ordered nearly a million tonnes of US soybeans, indicating that the reported re-route to Brazil was just “temporary coping tactics”. Another industry expert said that China’s purchases from Brazil are quite normal during the season. Also, the shipping channel between China and the US has been largely impacted due to surging freight rates in the past months. In addition, China may step up purchases of US corn and soybean after September.

• S&P Global Platts reported that Brazil’s soybean oil imports from January to August have soared to a more than 20-year high amid rising domestic prices, a cut in production and a local regulation allowing imported feedstock for biodiesel production. In the year through 31 August, Brazil imported 86,130 tonnes of vegetable oils, the highest volume since for the period since 110,530 tonnes in 1999. So far in 2021E, Argentina has been the top soybean oil supplier to Brazil, accounting for 55% of all Brazilian purchases, followed by Paraguay with a share of 42%.

• Jakarta Post cited an official as saying that the remaining swaths of oil palm plantations inside forest areas will have to be resolved by the controversial Job Creation Law and its implementing regulations if the expiring moratorium on new plantations is not extended after the three-year run. The moratorium enacted by President Joko Widodo three years ago in September required government agencies to stop granting new licences for palm oil concessions and to review existing ones every three years. So far, the Indonesia government has yet to extend the moratorium.

• Biofuels International reported that Royal Dutch Shell has proposed to build an 820,000 tonnes per year biofuels facility at the Shell Energy and Chemicals Park Rotterdam, the Netherlands. Once built, the facility will be among the biggest in Europe to produce sustainable aviation fuel and renewable fuel made from waste. The Rotterdam biofuel facility is expected to start production in 2024F. It will produce low-carbon fuels such as renewable diesel made from waste in the form of used cooking oil, animal fats and other industrial and agricultural residual products using advanced technology developed by Shell. Shell aims to reduce the production of traditional fuels by 55% by 2030F.

Source: AmInvest Research - 27 Sept 2021