• Bloomberg reported that China’s shrinking hog herd is likely to curb feed demand this year, affecting imports like soybeans and corn, which are used as feedmeal. Chinese pig farmers have been seeing their margins drop below zero in recent years. That is forcing them to cut production to stem losses. An industry expert said that with production capacity falling for hogs and broiler poultry, there is unlikely to be any increase in feed consumption. Sow numbers were 6.9% YoY lower at the end of February and the agricultural ministry has cut its target to 39mil from 41mil heads. Feed output fell 3.6% YoY in 2M2024.

• Bloomberg cited Ukraine’s Infrastructure Minister as saying that the country exported 33.8mil tonnes of cargoes via the so-called Black Sea Corridor since the route opened last August. 1,140 vessels have crossed the corridor to export cargoes, which included 23.1mil tonnes of agricultural goods. Currently, 150 vessels are waiting to enter the ports of Odessa, Chornomorsk and Pivdennyi to export another 5mil tonnes of goods. The minister added that the country has almost reached pre-war volume of exports from the ports of Greater Odessa.

• Business Standard of India reported that Malaysia will submit a request to India to procure an additional 500,000 tonnes of white rice. The request would be in addition to the 170,000 tonnes of white rice that India has allocated to Malaysia for the year. According to rice importer Bernas, Malaysia’s annual rice consumption is 2.5mil tonnes with an average imported supply of 750,000 tonnes.

• Reuters reported that Malaysia will closely monitor how the EU responds to a WTO ruling that supported the bloc’s stance that biofuel that causes deforestation cannot be regarded as renewables but sought changes in how it implemented the decision. A WTO adjudicating panel rejected many of Malaysia’s claims against EU’s measures that led it to rule out palm oil-based biofuel as a renewable fuel. However, the panel accepted Malaysia’s complaints over how the measures had been prepared, published and administered. The EU will need to make adjustments but need not withdraw its measures. The EU said that it was analysing WTO’s report. The EU would be issuing a report in the coming months on the most recent scientific data to determine whether crops have a high risk of contributing to deforestation and amend an act to change certain criteria for certification of crops of low risk.

Source: AmInvest Research - 8 Apr 2024