• Reuters reported that COFCO International and Modern Farming Group, which makes milk products, have signed an agreement “to supply and accept soybeans” coming from sustainable areas of production in Brazil. According to a statement from the Tropical Forest Alliance (TFA), the deal is valued at more than US$30mil and marks the first soybean order from China under a “clear deforestation and conversion free clause”. TFA is a platform hosted by the World Economic Forum, which aims to achieve the transition to deforestationfree supply chains by engaging companies, government authorities and civil society groups.

• The Times of India quoted the Solvent Extractors Association of India as saying that the country’s imports of palm oil and sunflower oil in 2022/2023 surged by 24% and 54% respectively to record highs on a rebound in consumption with both oils being available at a steep discount to soybean oil. Palm imports stood at 9.8mil tonnes in the 2022/2023 marketing year that ended on 31 October while sunflower oil imports rose to 3mil tonnes. In contrast, soybean oil imports fell 12% to 3.7mil tonnes as it was trading at a premium to palm and sunflower oils in most of the months.

• The Jakarta Post cited the RSPO as saying that there has been a substantial increase in certification among small farmers and independent mills in Indonesia. In 10M2023, the RSPO saw a 19% growth in its Indonesian membership. Environmental NGOs, consumer goods manufacturers and small farmers are leading the surge. RSPO-certified areas in Indonesia continues to expand, reaching over 2.5mil hectares. In 2022, 25 new mills were certified under RSPO with an additional 18 mills certified in 3Q2023. To assist small farmers in obtaining certification, US$141,000 has been allocated to 17 smallholder projects between November 2022 and October 2023, benefitting over 5,000 farmers.

• The Star reported that Malaysia via MPOB will continue its R&D to increase palm oil-based value-added products for companies in China to export to Muslim regions within the country. Deputy Prime Minister Datuk Seri Fadillah Yusof said that to date, several products are being commercialised in China thanks to the Palm Oil Research and Technical Service Institute of the Malaysian Palm Oil Board (PORTSIM). An official with PORTSIM said that the institute would create 3 to 8 new products yearly and vegan meat is among new products this year.

• According to Reuters, Argentina’s government has raised the price of bioethanol made from sugar cane or corn and biodiesel for domestic use. The new price for sugar cane-based bioethanol will be 310 Pesos per litre (US$0.89) while for corn-based bioethanol, the price is 303 Pesos per litre (US$0.87). The government has also raised the price of biodiesel to 520,000 Pesos per tonne (US$1,485.71) from 434,006 Pesos per tonne.

Source: AmInvest Research - 20 Nov 2023