- In its review, Platts said that prices in Asian biodiesel markets were under constant pressure in 2014. In 4Q2014, the collapse in energy prices was at odds with rising CPO prices resulting from the floods in Malaysia.

- This sent CPO to a premium over gasoil throughout December and on 30 December, CPO contracts ended US$140/tonne higher than gasoil contracts. At this level, any biodiesel blending is unfeasible and as a result, biodiesel prices fell below US$650/tonne (RM2,275/tonne) for the first time since April 2009.

- Platts also cited industry traders as saying that peak years of profitability for palm oil in Asia may be over due to weather, low prices and poor demand. A source drew similarities between palm oil and rubber.

- Another source said that CPO prices may be capped between RM2,400/tonne and RM2,500/tonne due to poor biodiesel demand. However going forward, new plantings of oil palm are likely to decline, which should improve prices in the next three to five years.

- Bloomberg reported that India is considering lifting an export ban on lentils and vegetable oils. Currently, only limited exports of edible oils in retail packs are permitted. This came after the country increased import duties on refined and crude palm oil products on 24 December 2014.

- Buenos Aires Exchange said that soybean plantings in Argentina were 91% completed as of last week. Soybean production in Argentina is forecast to climb 1.9% to 55mil tonnes in 2014/2015F. In Brazil, soybean crops in Parana have recovered from a recent dry spell. Parana is Brazil’s second largest soybean producer. Brazil is expected to record an 8.4% increase in soybean output in 2014/2015F.

- USDA (US Department of Agriculture) reported that shipments of US soybean have been accelerating in tandem with the bumper harvest. China accounted for almost 72% of US export shipments to-date. Apart from China, shipments to other countries such as Turkey, Taiwan and European Union have also been increasing.

- SGS and Intertek reported that Malaysia’s palm oil shipments edged down by 0.9% in December 2014 compared with the previous month.

- SGS said that palm oil shipments to China contracted by 23% MoM in December 2014 while the US bought 3.1% less palm oil. Exports of Malaysian palm oil to India and Pakistan expanded by 32.8% and 53.9% MoM respectively in December 2014.

Source: AmeSecurities