• Reuters cited sources as saying that Chinese wheat importers have cancelled or postponed 1mil tonnes of Australian wheat cargoes as growing world stockpiles drag prices. News of the move came after the US government reported cancellation of more than 500,000 tonnes of US wheat exports a few weeks ago to China. A trader said that Chinese buyers have cancelled some deals for Australian wheat and they have also moved the shipping time from 1Q to 2Q and 3Q. Another trader said that trading companies have vacated shipping slots across several Australian ports, which were booked for cargoes to China.

• Bloomberg reported that China may ask its soybean crushers to prioritise local supplies as it seeks to reduce reliance on imports. Beijing is discussing plans for some crushers to process specific amounts of local beans this year, according to sources. Domestic supplies can often be more expensive than imports and sources said that the government will subsidise any loss incurred by the companies.

• Reuters quoted the Buenos Aires Grains Exchange as saying that the percentage of Argentine soybean plantings with optimal-to-excellent soil moisture grew to 77% two weeks ago, boosted by rains. In the country’s main growing region, the exchange said that 9 out of every 10 hectares were in normal-to-excellent crop conditions. 69% of the late-planted soy crops had adequate moisture conditions while it was in a key development stage. However, an industry expert said that if the intense rains keep up, soybean harvest could be delayed with some output lost.

• Jakarta Post cited industry experts as saying that the EU’s deforestation regulation will make it harder for Indonesian biodiesel to enter the EU market as well as other countries. According to data from the Indonesian Biodiesel Producers Association (APROBI), biodiesel output in Indonesia rose 11.3% to 13.2mil kilolitres (11.5mil tonnes) in 2023. However, exports plummeted almost 50% to just 187,810 kilolitres (163,598 tonnes) in 2023 from 371,000 kilolitres (323,171 tonnes) in 2022. In January 2024, biodiesel exports sank 73% MoM to just 5,746 kilolitres (5,005 tonnes).

• The Star reported that there is a local rice cartel involving 4-5 companies, which control the buying and selling of rice, leading to shortages and increase in prices. The Chairman of the National Action Council on Cost of Living said that the information was obtained from engagement sessions with rice farmers, millers, wholesalers, retailers and consumers. The companies control up to 80% of local rice market. The cartel buys rice at a high price of up to RM1,850tonne and then raises the price further. Some of the companies also sell local rice in imported rice packages, which causes an unstable ecosystem of rice prices.

Source: AmInvest Research - 25 Mar 2024