Reuters quoted Bayer AG as saying that its new genetically modified (GM) soybean Intacta2 Xtend will account for 10% of Brazil’s planting areas in 2022E/2023F. The Intacta2 Xtend soybean, which tolerates the Dicamba herbicide and is resistant to insects, could be sowed on 4.3mil ha of land in 2022E/2023F compared with 243,000 ha in the previous year. The expected expansion of the third generation soybean seed technology comes after the seed was “tried and tested in the past 2 years in more than 500 areas in Brazil”, ensuring high yields with dozens of producers recording averages of 100 bags per ha. The yield is almost double that of Brazil’s average of 59 bags per ha, according to the country’s food supply agency, Conab.
Biofuels International conducted a poll, where a majority of the participants believe that increasing electrification will not threaten the biofuel transport sector. A total of 440 readers answered the question, with 59% arguing “no” while 42% replied “yes”. Although the electric vehicle market is growing fast, it is still in infancy. According to the International Energy Agency (IEA), sales of electric cars reached a record high in 2021 despite the Covid-19 pandemic and supply chain challenges. IEA said that in 2012, 120,000 electric vehicles were sold worldwide but last year, that many vehicles were sold in just a week. The IEA added that more electric vehicles were sold in China in 2021 (3.3mil) than in the entire world in 2020 (3mil).
AgriNews cited a report by CoBank’s Knowledge Exchange as saying that the recent surge of investments in the US renewable diesel production capacity is likely to ignite a period of growth and transition for the biofuel industry. Several industry players have announced plans for new soybean crushing and refining facilities in the past 2 years. Soybean oil is the feedstock most commonly used for producing renewable diesel. Combined, the proposed crush and refinery projects would increase US renewable diesel production capacity by 6x to 6.5bil gallons annually by 2030F.
Bloomberg reported that Indonesia will cap the increase in minimum wage at 10% for 2023F, higher than the hike prescribed by the law but short of the demand for as high as a 25% rise from labour unions. Protests have flared across the country as higher food, fuel and housing costs eroded public confidence in the administration of President Joko Widodo. The minimum wage review comes after a 30% increase in subsidised fuel price in September, which sent inflation to a 7-year high.
Bloomberg also quoted an industry expert as saying that Brazil’s decision to maintain a 10% mandatory biodiesel blend through March will discourage soybean processors from increasing crushing activities next year. Instead, exports of soybean will increase. Soybean crushing is expected to be steady in 2023F after falling by 12% in 2022E due to cuts in the biodiesel mandate. Previously, the biodiesel blending mandate was set at 10% until the end of the year, then rising by 14% in January and 15% in March.
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