• Bloomberg reported that Darling Ingredients Inc, which is a major US importer of renewable fuel, has defended imports of used cooking oil as a feedstock to produce climate-friendly fuels. Darling’s CEO said that Chinese imports are “a legitimate source of used cooking oil”. He noted that there are 12.6mil restaurants in China and only 700,000 in the US. The US has been flooded with used cooking oil from China, eroding profits for companies that crush soybeans to make renewable fuel.

• According to Bloomberg also, Cofco has completed loading its first cargo of certified deforestation-free Argentina soymeal. 18,000 tonnes of soymeal were loaded onto the MV Dublin Eagle at the company’s Timbues port terminal on the Parana River a few weeks ago. This was the first fully traceable and segregated shipment of deforestation-free soy products for Cofco International. The trader helped source the shipment using Argentina’s Visec certification platform, which has made the country “well-placed to supply Europe with EUDR- complaint soybeans”.

• Reuters reported that the upcoming US soybean harvest is expected to approach record levels, but exporters had sold practically none of it over the past few weeks. As of 9 May, US soybean export sales for 2024F/2025F had reached just 890,387 tonnes, a 19-year low and almost two-thirds lower than a year ago. Those sales cover just 1.8% USDA’s initial 2024F/2025F US exports forecast, which is the smallest in 23 years. Some industry experts fear President Biden’s recent tariff escalation on Chinese goods could further harm the US grains and oilseeds export programme.

• According to Reuters also, US soybean meal exports are expected to notch a 3rd consecutive record in 2024F/2025F despite the recovery of top meal exporter Argentina from last year’s apocalyptic soybean harvest. Additionally, the recent expansion in US soybean processing has facilitated the boom in meal exports but shipment rates are seen rising more quickly than those for crush. The USDA has pegged US soybean meal exports at a record 15.7mil tonnes for 2024F/2025F, up 9.5% YoY.

• EU and Malaysia have issued a joint Press Statement on EUDR (EU Deforestation Free Regulation) and the MSPO (Malaysian Sustainable Palm Oil) scheme. EU and Malaysia will continue working closely together on the implementation of EUDR and how the MSPO can provide readiness and assurances under EUDR for supply chain partners and regulators in EU. EU’s Commissioner for Environment and Fisheries stressed EU’s readiness to continue working jointly with Malaysia towards enhancing deforestation-free supply chains. In this context, EU will support nationally-mandated sustainable production of Malaysian palm oil in compliance with EUDR requirements.

Source: AmInvest Research - 27 May 2024