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Malaysia's 2025 budget promotes palm waste SAF
Malaysia's 2025 budget promotes palm waste SAF
Singapore, 21 October (Argus) — Malaysia's state-owned Petronas will work with palm oil producers to develop palm oil waste-based sustainable aviation fuel (SAF), according to prime minister Anwar Ibrahim when he presented the 2025 budget. The palm oil producers include Malaysia-based agribusiness FGV and Malaysia-headquartered SD Guthrie, previously Sime Darby. Anwar also announced additional higher tax brackets for crude palm oil (CPO) exports will be introduced from 1 November and proposed to increase Malaysia's windfall profit levy threshold for the palm sector. These changes are meant to ensure domestic CPO supply and encourage domestic production of value-added products including SAF and biodiesel, according to the Budget documents. Progressive export duties will be introduced from 8.5pc when CPO prices rise above 3,600 ringgit/t ($837/t), up to a maximum 10pc for CPO prices above 4,050 ringgit/t. Previous duty rates capped out at 8pc for CPO prices above 3,450 ringgit/t. This revised export structure is likely to weigh on palm oil prices, as exporters may reduce bids in the domestic market to keep prices below the threshold that will trigger higher export duties. The CPO price threshold for triggering Malaysia's windfall profit levy will be increased to 3,150 ringgit/t for Peninsular Malaysia and 3,650 ringgit/t for Sabah and Sarawak from 1 January 2025, a rise of 150 ringgit/t from the previous threshold for both areas. The windfall profit levy applies to producers of palm fresh fruit bunches (FFB). The revised export taxes and windfall profit levy threshold are expected to increase costs for the palm plantation sector, but would help the downstream palm refining industry become more competitive compared with Indonesia, according to industry consultancy Glenauk Economics. Replanting funds Malaysia will also allocate another 100mn ringgit to incentivise smallholders to continue replanting unproductive, ageing oil palm trees under its 2025 budget, the same amount from the previous year. The funding will be 50pc in grants and 50pc in soft loans, as in Budget 2024. No land area target for replanting was specified this year. But this year's allocated funding of 100mn ringgit mirrored last year's allocation that targeted 5,900 hectares (ha) of land area. But this amount will likely not be enough to support adequate replanting, according to market participants. Malaysia replanted an estimated 1.7pc of mature oil palm plantation areas during January-September and 2.6pc of mature areas in 2023, according to data from Glenauk Economics. This indicates more funding is likely needed to meet the 4pc industry standard for replanting mature areas yearly as recommended to maintain palm oil output volumes. The low replanting rate has likely partly been because of high palm oil prices in recent years compared to the historical average. High prices discourage voluntary replanting as plantation owners prefer to continue harvesting FFB from older trees over replanting. Third-month crude palm oil (CPO) futures on Bursa Malaysia averaged 3,890 ringgit/t over the past two years up to 21 October. The average price recorded over the past 10 years was just 3,124 ringgit/t. The US department of agriculture (USDA) estimated a quarter of planted oil palm areas in Malaysia were older than 25 years old as of early January, resulting in lower yields. By Malcolm Goh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil's 2024-25 crop to total 322.5mn t: Correction
Brazil's 2024-25 crop to total 322.5mn t: Correction
Corrects estimates for wheat crop in the first paragraph the "Wheat, cotton lint" subhed. Sao Paulo, 18 October (Argus) — Brazil´s 2024-25 grain and oilseed crop is set to reach approximately 322.5mn t, 8.3pc above the 2023-24 results amid an increased outlook for estimated yields. The national supply company (Conab) released its first estimate report for the 2024-25 season and expects yields of 3,964 kg/hectare (ha), up by 6.2pc from the prior cycle. The planted area forecast was increased to 81.3mn ha from 79.8mn ha in 2023-24 crop. Conab has also revised slightly down its final yield and production estimates for the 2023-24 crop. The previous season produced 297.9mn t — from 298.4mn t estimated last month — with average yields of 3,731 kg/ha — instead of the 3,739 kg/ha last estimated. Planted area remained at 79.8mn ha. The volume is also below the preliminary outlook for the 2024-25 crop, which Conab released in September. Conab's publication estimated 326.9mn t, which would be a new record for Brazil. The planted area was estimated at 84.4mn ha, with yields of 4,016 kg/ha. Soybean Brazil's 2024-25 soybean crop is expected to total 166.1mn t, a rise of 12.7pc from the 2023-24 season's volumes of 147.4mn t. The output is slightly down from preliminary estimates from September, when Conab estimated production of 166.3mn t, with a planted area of 47.4mn ha and yields at 3,508 kg/ha. The yearly increase is supported by higher sowed area and yield estimates. Conab projects the cycle to sow approximately 47.3mn ha, an expansion of 1.3mn ha on the year, while estimated yields were up by 9.6pc to 3,508 kg/ha. Corn Brazil is initially set to produce 119.7mn t of corn in 2024-25, including the first, second and third crops, according to Conab. That is 3.5pc — or 4mn t — above the 2023-24 volumes. The increase is supported by the 3.7pc rise of expected yields to 5,701 kg/ha. Planted area is estimated at 21mn ha, down by 0.2pc from the 2023-24 cycle. Conab estimated in September production of 119.8mn t, with a planted area and yields of 21mn ha and 5,706 kg/ha, respectively. For the winter corn cycle — also known as the second crop — Conab projects that the 2024-25 second corn crop will produce 94.6mn t, up by 4.8pc from 90.3mn t in the previous crop. Yield estimates were increased to 5,702 kg/ha from 5,491 kg/ha, while the planted area estimate went up by nearly 159,200ha to 16.6mn ha. In September, Conab estimated production of 94mn t, with a planted area of 16.5mn ha and yields at 5,700 kg/ha. The 2024-25 summer corn — also known as the first crop — is expected to decrease by 1.1pc to 22.7mn t this year. The 5.4pc reduction in acreage to 3.8mn ha more than offsets the 4.6pc expected increase of yields to 6,049 kg/ha. In September, Conab estimated production of 23.4mn t, with a planted area of 3.8mn ha and yields at 6,080 kg/ha. Wheat, cotton lint Brazil's wheat production is estimated at approximately 8.3mn t in 2024. Yields and planted area are set to reach 2,693 kg/ha and 3.1mn ha, respectively. Conab should release the estimate for 2025 crop in February, as planting usually starts in main producing states. Conab projects the 2024-25 cotton lint production at 3.7mn t, approximately 7,900t below the previous season. The yearly decrease is driven by a 3.1pc drop of yields to 1,831 kg/ha, more than offsetting the 2.9pc expansion in estimated planted area to over 2mn ha. In September, Conab preliminarily estimated production of 3.7mn t, with a planted area of 2mn ha and yields at 1,831 kg/ha. 2024-25 soy exports revised up Brazil's expected 2024-25 soybean exports are set to total a record 105.5mn t. That is up by 14.2pc — or 13.1mn t — from 92.4mn t in the previous crop, amid a higher demand expected specially from China. Soybean crushing for the season is set to total 56.6mn t up by 8pc from the previous crop, amid an expected increase of soybean oil production by nearly 830,000 t to 11.4mn t. But corn exports are set to drop to 34mn t in the 2024-25 crop from 36mn t in the previous cycle. The 2023-24 corn exports represent a decrease by 27pc compared to the record 54.6mn t exported a year previous. Lower Brazilian production and higher international availability, specially considering the US production, weigh on exports from Brazil. By João Petrini Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Iowa renewable feedstocks terminal begins operations
Iowa renewable feedstocks terminal begins operations
Houston, 18 October (Argus) — Biofuels supply chain company Eco Energy has started operations at its renewable feedstocks terminal in Newton, Iowa, expanding domestic feedstock access for the renewable diesel market. The terminal will give Marathon Petroleum access to distillers corn oil, soybean oil, animal fat and used cooking oil (UCO) from Iowa for use in the company's renewable fuels segment, Eco Energy said on 15 October. The site east of Des Moines includes 1.2mn USG of feedstock storage, 32 tank car offload spots and access to primary railroads. Through a joint venture, Marathon and Neste are in the process of fully converting Marathon's Martinez, California, refinery to produce 48,000 b/d of renewable fuels, primarily renewable diesel, with full capacity expected by the end of this year. The agreement requires the companies to split feedstock supply requirements for the plant. By Payne Williams Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US corn, wheat, soy export sales outpace 2023-24
US corn, wheat, soy export sales outpace 2023-24
Washington, 18 October (Argus) — Total commitments of US corn and wheat export sales for the 2024-25 marking year are running far ahead of last year, with soybean sales posting more modest gains, US Department of Agriculture (USDA) data show. US corn export sales totaled 2.23mn t for the week ended on 10 October, reaching 19.88mn t for the 2024-25 marketing year. Corn export commitments were up by 23pc or 3.7mn t compared with a year earlier. Japan was the largest known buyer of corn for the week, accounting for 450,000t. Japan had booked 830,000t more corn this marketing year than a year earlier, and among known buyers ranked No. 2 for total commitments of 2.55mn t. Mexico was the largest corn buyer as of 10 October, with total commitments of 8.28mn t. But most of the gains in corn sales cannot be attributed to specific buyers, with sales to unknown buyers up by 2.15mn t compared with the year prior. Wheat export sales totaled 500,000t for the week, with total commitments amounting to 12.55mn t, up by 24pc or 2.46mn t from the year prior. Mexico was the largest single purchaser of wheat for the week at 140,000t. Mexico also had the largest amount of total commitments for the current wheat marketing year at 2.13mn t, 460,000t more than last year. The Philippines had 1.68mn t in committed sales for the marketing year. Soybean export sales totaled 1.7mn t for the week. Total commitments stood at 21.84mn t for the current marketing year, up by 5pc or 1.04mn t from the previous year. China purchased the most soybeans for the week at 1mn t. China has purchased 9.12mn t of soybeans so far for the current marketing year, but that is 760,000t less than the year prior. The drop in China soy bookings was offset by gains in purchases from the EU and Egypt. By Rachel Nelson Click here to download the Argus data and downloads for US corn export sales Click here to download the Argus data and downloads for US soybean export sales Click here to download the Argus data and downloads for US wheat export sales US Corn Weekly Exports mn t Current Marketing Year Next Marketing Year Weekly Exports Net Sales Total Commitments Outstanding Sales Net Sales Outstanding Sales 10-10-24 0.50 2.23 19.88 14.91 0.00 0.11 Prior week 1.06 1.22 17.65 13.18 0.00 0.11 WASDE 1.14* 59.06 Progress 34% 5-yr ave 33% *52 week average WASDE rate — USDA US Soybean Weekly Exports mn t Current Marketing Year Next Marketing Year Weekly Exports Net Sales Total Commitments Outstanding Sales Net Sales Outstanding Sales 10-10-24 1.85 1.70 21.84 16.42 0.00 0.00 Prior week 1.71 1.26 20.14 16.57 -0.01 0.00 WASDE 0.97* 50.35 Progress 43% 5-yr ave 50% 0% *52 week average WASDE rate — USDA US Wheat Weekly Exports mn t Current Marketing Year Next Marketing Year Weekly Exports Net Sales Total Commitments Outstanding Sales Net Sales Outstanding Sales 10-10-24 0.39 0.50 12.55 3.77 0.00 0.03 Prior week 0.36 0.43 12.05 3.66 0.01 0.03 WASDE 0.43* 22.45 Progress 56% 5-yr ave 53% 0% *52 week average WASDE rate — USDA Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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