- Bloomberg reported that Indonesia will be imposing the palm oil export levy starting April 2015. The government decree is expected to be signed on 6 or 7 April and the ruling will become effective upon signing. Palm oil exporters will be paying a levy of US$50/tonne for crude palm oil and US$30/tonne for processed palm oil.

- Bloomberg also reported that Potash Corporation and two other producers in North America have signed potash supply contracts with their major customers in China. The selling price of the potash was not disclosed. Contracts with China set the benchmark pricing for the rest of the world.

- Canpotex, which represents Potash Corporation, Mosaic Co and Agricum Inc will be shipping at least 1.8mil tonnes of potash to China this year, 12% higher than 2014.

- In mid-March, Belarusian Potash Co signed a potash contract with China at US$315/tonne including shipping costs. This was US$10/tonne higher than the selling price in 2014 but significantly lower than the 10% price hike that the potash manufacturers had been seeking.

- An industry expert was quoted as saying that Canpotex’s reference to the selling price as “current competitive levels” implies that it has also agreed to sell potash to China at US$315/tonne.

- Reuters reported that European Union (EU) has reached a tentative deal on a 7% limit on the usage of crop-based biofuel in the transportation sector. The Environment Committee of the European Parliament will vote on the proposed law on 14 April 2015 and then a plenary session of the Parliament will endorse it. Currently, renewable sources are supposed to account for 10% of energy usage in the transportation sector by 2020.

- Archer Daniels Midland Co has committed to a “no deforestation” policy for soybeans and palm oil. ADM said that it is committed to developing ways to trace crops and making supply chains transparent.

- The Chairman of Indonesian Palm Oil Board said that the country’s palm oil exports may decline if the Government is successful in implementing B15. Indonesia’s palm oil exports may fall from 21.76mil tonnes in 2014 to 19mil tonnes in 2015F. B15 biodiesel mandate is expected to use three to four million tonnes of palm oil in 2015F.

- Finally, two independent cargo surveyors said that Malaysia’s palm oil shipments increased by 14.8% and 21.4% respectively in March 2015. China’s palm oil imports improved by 220.6% MoM in March 2015 while India bought 20.7% more palm oil.

Source: AmeSecurities Research - 6 Apr 2015