• Bloomberg reported that Moolec Science SA, which is a seed producer trying to break into the alternative meat market, has received clearance from the USDA (US Department of Agriculture) for its soybeans that are genetically modified to include pork protein. Moolec has been working on inserting pork genes into soy and beef genes into peas to create hybrid plant-animal proteins that can replace actual meat in sausages and burgers. While USDA said that the pork-infused soy does not pose an increased risk of pest and therefore does not need regulating, other agencies such as the Food and Drug Administration may subject the seeds to requirements for full clearance.

• Bloomberg quoted a report by the Rosario Board of Trade as saying that Argentina is expected to export US$29.3bil of crop products in 2024F, down 2.4% from US$30.1bil estimated on 1 March. The reduction is due to corn losses as farms suffered unprecedented attacks by a leafhopper plague. Also, even though Argentinean crop harvests have rebounded from a drought last year, low prices are set to cap hard-currency export revenue needed by the central bank.

• Wilmar International said that it has assessed the damage to an 80%-owned tank terminal facility in Ukraine, which was struck by a missile on 19 April 2024. It is estimated that it will take 6 months to rebuild the oil tanks destroyed in the missile attack. Operations will resume as soon as relevant clearances have been obtained from local authorities, which is expected to be in the coming weeks. The incident will not have a material impact on Wilmar’s FY24F results.

• According to Reuters, Paraguay is headed for a record soybean harvest but exporters are worried about low river levels that are slowing shipments along the key Paraguay-Parana waterway. Also, there is a drought in central-west Brazil, which is affecting water levels running downstream. Industry sources and an analysis of river level data showed that the Paraguay River is far shallower than at the same time a year ago, affecting barges carrying grains down the river. Paraguay’s soybean exports totalled 2.5mil tonnes in 1Q2024, up from 1.6mil tonnes last year.

• Reuters cited sources as saying that Italian energy group, Eni, aims to sell a minority stake in its biofuel and bio-plastic units that could fetch around EUR1.3bil by year-end. The group has initiated preliminary discussions with funds and industrial investors to find a partner interested in a stake of up to 10% in biofuel unit, Enilive. The unit could be valued at EUR10bil or more, including debt. Separately, Eni is in talks with 2 suitors to sell up to a 30% stake in its bio-plastic business, Novamont, which could be valued at EUR1bil, including debt.

Source: AmInvest Research - 29 Apr 2024