• S&P Global Platts cited sources as saying that India’s recent limits on edible oil stocks are not expected to slow down palm imports in the near term. Instead, harsher restrictions could backfire on the domestic supply chain at a time when the country is facing soaring food inflation and the markets are in a middle of a festive season. India introduced stock limits on edible oils on 10 October 2021 to reign in domestic prices by regulating how much inventory wholesalers and retailers can carry. As per the order, the state governments will determine the stock limits after considering available stocks and consumption patterns.

• Bloomberg reported that one hundred countries, representing 85% of the world’s forests, have given themselves nine years to stop and reverse deforestation in a major commitment during the Cop26 climate talks last week. Brazil, Russia, Canada, Colombia and Indonesia will be among the nations committing to halt and reverse forest loss and land degradation by 2030F. The international pledge will be backed by US$19.2bil in funding, the UK said. However, only US$7.2bil of that will be new money, coming from companies and philanthropies. The money will go towards encouraging deforestation-free soybean and cattle production in South America.

• Dow Jones cited the USDA as saying that although inspections of US soybean exports fell slightly in the last week of October vs. the prior week, they were still high. Inspections of soybeans amounted to 2.27mil tonnes in the week ended 28 October, which were slightly lower than the previous week. China continued to be the main destination for US soybeans, with shipments of 1.43mil tonnes for the week. Other leading destinations were Mexico, Italy, Egypt and Japan.

• The Biomass Magazine quoted the US Energy Information Administration (EIA) as saying that operatable biofuels production capacity in the US remained steady at 20.734bil gallons per year in August. However, biofuel feedstock consumption declined by 1.938bil pounds MoM to 24.948bil pounds in August. The EIA estimates that 23.196bil pounds of corn and 30mil pounds of sorghum were used to produce biofuel in August.

• According to Reuters, the head of India’s edible oils producers’ association has called on producers to voluntarily cut wholesale prices to help consumers reeling from a sharp increase in global prices. Atul Chaturvedi, the President of the Solvent Extractors Association of India said that ahead of Diwali, many members have already decided to reduce the price of edible oils by 3,000 rupees (US$40.03) to 5,000 rupees a tonne. The reduction in import duties has also led to a drop in local prices. Domestic wholesale prices of edible oils have declined by 7% to 11% in the past few weeks.

• According to Bloomberg, two of the world’s top fertiliser producers expect the surge in fertiliser prices to continue. Nutrien Ltd raised its full-year guidance last week as it forecasts strong crop prices to support fertiliser spending. The company said that potash prices continued to increase in all key markets driven by record demand and strong grower margins. Mosaic Co expects upward pricing momentum to continue as 90% of its fourth quarter sales have already been committed and priced with some customers requesting commitments as far ahead as 2Q2022.

Source: AmInvest Research - 8 Nov 2021