• Bloomberg reported that Indonesia has issued 2.9mil tonnes of palm export permits as of 18 July. As many as 1.8mil tonnes of shipment permits were issued based on the DMO programme (domestic market obligation). Indonesia needs to ship at least 6mil tonnes of palm oil until August for reserves to return to the normal levels of 3 to 4mil tonnes.

• The Star reported that stakeholders want the government to think out of the box to resolve the shortage of foreign workers, suggesting remedies ranging from extending permits of existing workers, shortening the wait times for interviews and expanding the source country list. The business fraternity said extending the terms of existing foreign workers to three years would help while the recruitment of extra workers was being undertaken. NCCIM (National Chamber of Commerce and Industry of Malaysia) president Tan Sri Low Kian Chuan said that since January, only 19,043 foreign workers have arrived in Malaysia, making up only 6.1% of the total approved quota of about 310,000 workers. The estimated worker shortage in Malaysia is at least 400,000 to 500,000.

• Euractive.com reported that the European Parliament’s industry committee has voted to restrict soybean oil as a feedstock for biofuel production, a move that would place the crop at the same footing as palm oil in the EU. The lawmakers made the decision due to concerns over the environmental impact of soybean cultivation in countries outside of the EU where it is blamed for causing deforestation. Also, lawmakers want to bring forward the start of the phase-out date for palm oil and soybean, currently set at 2030F to apply as soon as the directive comes into force, possibly as of next year.

• Biodiesel Magazine quoted the US Energy Information Administration’s (EIA) latest Short Term Energy Outlook as saying that US biofuel consumption has risen in 2022E and the growth is expected to continue. The EIA currently predicts that renewable diesel consumption will average 116,000 barrels per day in 2022E, up 41,000 barrels per day or 53% when compared to last year. Renewable diesel consumption is expected to average 164,000 barrels per day in 2023F. The EIA said that the forecast assumes that some of the capacity, which is scheduled to come online in 2022E and 2023F, will have delays or be affected by high feedstock costs.

• DTN Progressive Farmer reported that most average retail fertiliser prices continued to be cheaper in the first week of July compared to last month. The lower trend has been in place for 6 weeks. Urea was 11% lower compared with the previous month. Urea had an average price of US$866/tonne in the first week of July. Only one fertiliser was slightly more expensive than last month. Potash had an average price of US$885/tonne in the first week of July. Declining crop prices have been pushing fertiliser prices lower.

Source: AmInvest Research - 25 Jul 2022