• Bloomberg reported that India has received requests for the supply of more than 1.5mil tonnes of wheat from several countries that need the staple to overcome shortages triggered by the invasion of Ukraine by Russia. The bulk of the request came from Bangladesh, sources said. Sources said that for Bangladesh, Indian wheat is at least 30% cheaper than supplies from other origins and it takes just about a week for Indian cargoes to reach there.

• Bloomberg quoted a government official as saying that Indonesia has granted 11 export permits for cooking oil, including to units of Sinar Mas Agro Resources, Synergy Oil and Asian Agri as of 30 May. The companies are allowed to export 3 times as much as its domestic contribution of bulk cooking oil. More applications are being processed, which will be automatically generated by Indonesia’s National Single Window system. As many as 61 companies are eligible for export permits.

• Reuters reported that the Malaysian Palm Oil Association (MPOA) is expecting 52,000 migrant workers to arrive by the end of the year but warned that it would be too little, too late for output to rebound. An official with the MPOA said that the government has agreed to allow the entry of 20,000 workers whose applications were approved before the borders were shut in 2020, in addition to the allocation of 32,000 workers to ease the ongoing labour crunch.

• S&P Global Platts said that India’s tax waiver on annual imports of 2 million tonnes each of crude sunflower and soybean oil may pressure palm imports but the impact will be visible only after June. Vegetable oil refineries will have to apply for a licence from the Directorate General of Foreign Trade to obtain the quotas. Applications must be submitted by 16 June as allocation will take at least 15 days, according to an industry player.

• According to a survey by S&P Global Platts, soybean demand in China is expected to decline by 6% to 90.8mil tonnes in 2022F as ongoing Covid restrictions and persistent negative crushing margins continue to take their toll. Market sources said that the operating rate of crushing plants is expected to average 67% in May and June. This is in line with the current slow pace of purchasing by Chinese crushers for prompt and nearby shipments.

• Business Recorder reported that the Pakistan government has decided to abolish the additional import duties of 2% on palm imports from all countries except Indonesia from 10 to 20 June 2022. Although Indonesia has lifted the ban on palm oil on 23 May, the country has imposed conditions that exporters need to ensure a certain amount to the domestic market and obtain export permits. These conditions have resulted in delays of shipments from Indonesia.

Source: AmInvest Research - 7 Jun 2022