• S&P Global Platts reported that US soybean acreage is likely to rise in 2022F/2023F amid soaring fertiliser prices. As fertiliser price indexes hit record highs, the input cost pressure on fertiliser-intensive corn plantings will be markedly higher than soybeans in 2022F, industry experts said. The low supply-driven spike in energy costs in Europe and China, especially natural gas, on which fertiliser manufacturing is heavily dependent – has pushed the prices of all nitrogen-based fertilisers to unprecedented levels.

• The Edge Markets reported that palm oil stakeholders globally should take opportunities arising from the EU Parliament’s farm-to-fork strategy of the legislative process to demand justice and correct misleading information on palm oil. European Palm Oil Alliance advisor for food legislation Imkje Tiesinga said EU customers are currently being misled when they see the “Free from Palm Oil” label on products as they perceived it to be something better. She added that consumers understand “Free from Palm Oil” as meaning low in saturates or reduced in saturates and that the “No Palm” claim is in violation of the claims regulation.

• According to Reuters, which quoted customs data, China’s soybean imports in September fell by 30% YoY and hit the lowest for the month since 2014 as poor crushing margins curbed demand. General Administration of Customs data showed that China brought in 6.88mil tonnes of soybeans in September 2021, down from 9.79mil tonnes a year ago. Chinese crushers stepped up purchases of soybeans earlier this year in anticipation of strong demand from a fast recovering pig herd. Demand started weakening however, as plunging hog margins pressured crushing margins.

• WorldGrain.com cited a USDA report as saying that Argentina farmers are expected to plant less soybeans than originally projected as government policies and availability of hybrid seeds encouraged more corn plantings. The USDA said that total planted acres for 2021E/2022F are reduced to 17mil hectares with an average estimated abandonment of 500,000 hectares. Projected harvested acreage is 16.5mil hectares and a total production of 49.7mil tonnes. This was a reduction of 1.5mil tonnes from the June projections and 2.3mil tonnes lower than the previous estimate. The USDA added that Argentine corn yields have risen faster than soybeans in the past 10 years and new varieties have performed better under drought stress conditions than soybeans.

• Bloomberg quoted an executive director with a group representing fertiliser companies in Brazil as saying that while there is no shortage of fertiliser for the 2021E/2022F season, plantings next year may face geopolitical risks. Risks to global fertiliser supplies next year include economic sanctions on Belarus, a key potash exporter and high energy costs in China, which is a nitrogen and phosphorus supplier.

Source: AmInvest Research - 25 Oct 2021