• Bloomberg quoted MPOA (Malaysian Palm Oil Association) as saying that palm oil output in
  
  Malaysia could rise by 5% this year after the government allowed plantations to hire foreign
  
  workers. The admission of new workers potentially means that an additional 5.2mil tonnes of
  
  FFB can be harvested. This translates into 1mil tonnes of CPO. The extra tonnage could
  
  generate revenue of close to RM4bil, bringing significant relief to the industry, which is
  
  grappling with a substantial shortage of up to 40,000 workers.

• Bloomberg cited a report as saying that America is seeing more and more of its most fertile
  
  land snapped up by China and other foreign buyers, yet problems with how the US tracks
  
  such data means that it is difficult to know how much. Foreign ownership and investment in
  
  property such as farmland, pastures and forests jumped to about 40mil acres in 2021, up 40%
  
  from 2016, according to the USDA. But an analysis conducted by the US Government
  
  Accountability Office found mistakes in the data, including the largest land holding linked to
  
  China being counted twice.

• Reuters reported that on 19 January, the USDA confirmed private sales of 297,000 tonnes of
  
  US soybeans to China, the first soybean sales announcement under its daily reporting rules
  
  since 19 December and the first to China since 15 December. China has booked 20.2mil
  
  tonnes of US soybeans so far in 2023/2024F, down from 27.2mil tonnes a year ago. USDA has
  
  projected China’s global 2023/2024F soybean imports at 102mil tonnes, up from 100.9mil
  
  tonnes in 2022/2023. However, a recent downturn in China’s massive hog sector is expected
  
  to reduce the country’s soybean imports in 1Q2024 to a 4-year low.

• Reuters quoted agribusiness consultancy, Agroconsult as saying that Brazilian farmers will
  
  reap 153.8mil tonnes of soybeans in 2023/2024F as it starts an expedition to inspect fields in
  
  the country. Agroconsult blamed extreme weather, which brought excessive heat and
  
  dryness to states like Mato Grosso and too much rain in southern Brazil as reasons for its
  
  downward revision. Also, Brazilian farmers were forced to replant record soybean areas this
  
  season due to the inclement weather. Agroconsult said that growers replanted an estimated
  
  area of 2.9mil hectares, representing 6.4% of Brazil’s total soybean fields.

• The Star reported that oil palm smallholders in Malaysia are getting ready with preventive
  
  measures for the dry season anticipated after February. In a statement, the MPOC said that
  
  the current El Nino was not as severe as the one in 2015. An official with MPOB suggested
  
  that the current El Nino may conclude between April and June this year, which is in line with
  
  predictions made by MetMalaysia.

• Bangkok Post reported that the country’s Industry Ministry is encouraging Saudi Arabian
  
  entrepreneurs to invest in potash mining in Thailand as it has a rich supply of the mineral.
  
  Thailand has a large quantity of potash reserves and the government has granted mining
  
  concessions to 3 companies. The concessionaires are Asia Pacific Potash Corp, Asean
  
  Potash Chaiyaphum PLC and Thai Kali Co. They are expected to produce up to 3mil tonnes of
  
  potash per year.

Source: AmInvest Research - 29 Jan 2024