• Bloomberg reported that Indonesia is considering extending the CPO export levy waiver beyond the existing end-August deadline to boost shipments and FFB prices. Also, the trade ministry has raised the domestic market obligation and exports ratio to 1.9x from 1.7x starting 1 August 2022. Indonesia issued palm oil export permits for 4.2mil tonnes as of 29 July. The export permits based on the domestic market obligation programme amounted to 3.1mil tonnes while the permits for the remaining 1.1mil tonnes were based on the export acceleration programme.

• According to Bloomberg also, Malaysia will set a ceiling price for cooking oil sold in 5kg from 8 August onwards. The price for August has been set at RM34.70 based on the average price of CPO of RM4,603/tonne in July. The price cap will be revised on the 8th of every month.

• According to The Edge Markets online, the Indian Vegetable Oil Producers’ Association estimates India’s palm imports from Malaysia to remain stable in 2H2022. Malaysia is expected to account for 55% of India’s total palm imports despite Indonesia’s move to accelerate palm oil exports. Association president Sudhakar Desai said that this was in line with increased demand in India, which is estimated to be 800,000 tonnes per month in the next 6 months. This is a 20% improvement compared with 1H2022.

• S&P Global Platts reported that US biofuel producers, who have at times felt overlooked in the Biden administration’s push for vehicle electrification, cheered incentives for low-carbon fuels included in a climate investment deal reached by the US Congress. The Inflation Reduction Act of 2022, if passed, would make US$369bil available for energy security and climate change spending over the next decade. The legislation includes funding and key tax credits to boost biofuel production. The legislation also extends the tax credit of US$1.00/gallon for biodiesel, renewable diesel and alternative fuels through 2024F and creates a new tax incentive through 2024F for sustainable aviation fuel.

• Mining.com quoted Brazil Potash president Adriano Espeschit as saying that potash prices are set to normalise in the mid-term, as soon as early 2023F. Espechit said that over the long term, there is a trend towards the normalisation of prices. Also, besides the war in Ukraine, other factors such as the Covid lockdowns in China are still affecting the potash market. According to the University of Illinois, potash prices have eased slightly in recent monthsbut remain sharply higher than in 2021.

• The Star cited Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin as saying that Malaysia is ready to assist Indonesia in dealing with its high palm oil inventories. She said a working committee has been set up to assist Indonesia. Also, Reuters reported that China’s securities regulator has approved the trading of soybeans and soybean oil options on the Dalian Commodity Exchange. Options trading for soybean and soybean oil will begin on 8 August.

Source: AmInvest Research - 8 Aug 2022