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US urges EU to delay deforestation regulation: Update

  • Market: Agriculture, Biomass, Fertilizers
  • 21/06/24

Adds comment from an EU official in paragraph six

The US government has urged the European Commission to delay the implementation of the EU's deforestation regulation (EUDR), which is due to come into force from 30 December.

"We are deeply concerned with the remaining uncertainty and the short time frame to address the significant challenges for US producers to comply with the regulation," US authorities said in a 30 May letter seen by Argus that was signed by agriculture secretary Thomas Vilsack, commerce secretary Gina Raimondo and US trade representative Katherine Tai, and addressed to the commission's vice-president, Maros Sefcovic.

The US authorities have together with "several stakeholders" identified four "critical challenges" for US producers to understand and comply with the EUDR: no final version of the EUDR information system for producers to submit the mandatory due diligence documentation has been established yet; no implementation guidance has been provided — with the traceability system expected to launch in November; many EU member states have not designated a competent authority to enforce the regulation; and finally, the EU has an interim decision to classify all countries as standard risk, regardless of forestry practices.

Should these issues not be addressed before the EUDR starts being enforced, it "could have significant negative economic effects on both producers and consumers on both sides of the Atlantic", the letter said.

"We therefore urge the EU Commission to delay the implementation of this regulation and subsequent enforcement of penalties" until the challenges have been addressed, it added.

An EU official confirmed receipt of the US letter to Argus and said the commission would reply in due course.

A number of EU member states had also urged the EU to revise the EUDR in March, although the EU environment commissioner said at the time that the EU was ready for implementation and that they did "not see any issues".

The EUDR requires mandatory due diligence from operators and traders selling and importing cattle, cocoa, coffee, palm oil, soya, rubber and wood into the EU. Derivative products that contain, have been fed with or made using cattle, cocoa, coffee, oil palm, soya, rubber and wood — such as leather, chocolate and furniture as well as charcoal, printed paper products and certain palm oil derivatives — are also subject to the regulation.

Firms must ensure that products sold in the EU have not caused deforestation or forest degradation. The law sets penalties for non-compliance, with a maximum fine of at least 4pc of the total annual EU turnover of the non-compliant operator or trader.

The regulation requires geolocation data for proof of traceability, and does not accept the widely used mass-balance approach, which has often been cited by industries as one major challenge for implementation.

The EUDR will establish a system to assess the risk for individual countries, but the US Department of Agriculture has previously said that even if the US were classified as a low-risk country, compliance would still be costly and challenging, and at least $8bn/yr of US agricultural exports to the EU would be affected.


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11/02/25

Brazil’s January inflation lowest since 1994

Brazil’s January inflation lowest since 1994

Sao Paulo, 11 February (Argus) — Brazil's monthly inflation stood at 0.16pc in January, the lowest increase for the month since 1994 when the government enacted multiple measures to contain soaring inflation, according to government statistics agency IBGE. The consumer price index (CPI) slowed annually to 4.56pc from 4.83pc in December, heavily influenced by a 14.2pc tumble in power costs in January, compared with a 3.19pc drop in December. Power costs decelerated January's inflation by 0.55 percentage points — the major individual contributor to the annual drop, according to IBGE — thanks to a R1.3bn ($224mn) federal discount in power tariffs that month, CPI's manager Fernando Goncalves said. Food and beverage costs rose by an annual 7.25pc, decelerating from 7.69pc in December. Beef costs increased annually by almost 21.2pc following a 20.8pc gain in the month prior, while soybean oil costs decelerated to 24.55pc over the last 12 months from 29.2pc in December. Motor fuels prices rose by 11.35pc in January. Ethanol was responsible for the group's largest annual increase of 21.59pc, up from 17.58pc in the month prior. Gasoline and diesel prices also registered annual rises of 10.71pc and 2.66pc from 9.71pc and 0.66pc, respectively. Still, diesel prices remained at a 0.97pc monthly increase from December, while ethanol costs contracted by 1.82pc from 1.92pc and gasoline prices increased by 0.61pc from 0.54pc. Fuel prices are likely to keep increasing in February, as states increased the VAT-like ICMS tax on fuels and state-controlled Petrobras increased wholesale diesel prices by 6.3pc , both effective as of 1 February. Transportation costs rose by 1.3pc in January over the year, following a 0.67pc gain in December. Flight tickets were the most responsible for the increase, with a 10.42pc monthly gain from a 22.2pc contraction in December. Brazil's central bank is targeting CPI of 3pc with a margin of 1.5 percentage point above or below. The bank raised its target rate to 13.25pc in January after it failed to maintain Brazil's headline inflation under the ceiling of 4.5pc for 2024. Further increases are expected in the coming months, the bank said. The central bank has recently changed the way it tracks the inflation goal. Instead of tracking inflation on a calendar year basis, it will now monitor the goal on a 12-month basis. In 1994, Brazil enacted its Plano Real, a series of measures to stabilize the economy and detain soaring inflation, which had hit an annual 916pc by the end of that year. One of the measures was to change its currency to the real from the cruzeiro real. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Vessel nominations roll in for RCF urea tender


11/02/25
News
11/02/25

Vessel nominations roll in for RCF urea tender

Amsterdam, 11 February (Argus) — Vessel nominations in Indian importer RCF's 23 January tender to buy urea have emerged, with 11 out of 12 shipments nominated. Four vessels will load from the Middle East, two from Nigeria, two from Indonesia, at least two — and probably three — from Russia and one cargo of probably re-exported material from Yantai in China ( see table ). The 11 vessels nominated are set to load this month. Quest is the one supplier still to nominate a vessel, but this will probably load in Russia. Vessels are to load by 5 March, as per RCF's request. There will be nine shipments for a combined 411,500t to the east coast and 147,400t in three lots to the west coast, totalling 558,900t. Indagro made the lowest offer at $422/t cfr west coast and $427/t cfr east coast. RCF had sought up to 1.5mn t of urea and market participants are awaiting the next tender from India to bridge the shortfall, which is expected in the next 1-2 weeks. By Harry Minihan RCF 23 Jan urea tender vessels Supplier Tonnage t Prilled/granular urea Origin Destination port West coast Indagro 45,000 Granular UAE Mundra Ameropa 52,400 Granular Sohar, Oman Deendayal Quest 50,000 Russia TBC Rozy East coast Indagro 45,000 Granular Onne, Nigeria Kakinada Midgulf 45,000 Granular Indonesia Krishnapatnam Midgulf 31,500 Granular Lekki, Nigeria Krishnapatnam OQ 45,000 Granular China Kakinada Sun International 50,000 Prilled Qatar Paradip Liven 47,500 Granular Indonesia Vizag Fertistream 45,000 Prilled Tuapse, Russia Gangavaram Aditya Birla 52,500 Granular Sohar, Oman Dhamra Aditya Birla 50,000 Prilled Ust Luga, Russia Karaikal Total 558,900 — market sources Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Rain shuts Australian copper, fertilizer rail line


11/02/25
News
11/02/25

Rain shuts Australian copper, fertilizer rail line

Sydney, 11 February (Argus) — Torrential rains have shut Australia's Mount Isa rail line, which links phosphate and copper mines to the Port of Townsville in Queensland, with no reopening timeline in place. "The North Coast and Mount Isa rail lines have suffered severe damage with approximately 177 defects found so far," rail operator Queensland Rail (QR) said on 10 February. But the company has not yet examined parts of the line because of safety concerns, QR told Argus , preventing it from coming up with a reopening plan. Mining firm Glencore's Mount Isa copper and Australian manufacturer Incitec Pivot's Phosphate Hill fertilizer mines use the line to move commodities from production sites to the Port of Townsville, for export or distribution to other parts of Australia. Australian mining firm Centrex also uses the line to ship phosphate rock from its Ardmore phosphate project. Wet weather forced the Port of Abbot Point, located just south of Townsville, to close from 31 January to 5 February . The Port of Townsville remained open throughout that period, despite large parts of the city flooding. Incitec Pivot's Phosphate Hill plant is also currently facing non-weather-related challenges. The company lowered the mine's forecast production by 7pc to 740,000-800,000t for the 2025 financial year to 30 June, because of gas supply challenges. Argus ' MAP/DAP fob Townsville price was last assessed at $620-640/t on 6 February. By Avinash Govind and Tom Woodlock Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Indonesian, Malaysian MOP, NPK imports rise in 2024


10/02/25
News
10/02/25

Indonesian, Malaysian MOP, NPK imports rise in 2024

Singapore, 10 February (Argus) — A global palm oil rally in 2024 improved affordability for Indonesian and Malaysian plantations, pushing up MOP and NPK imports in the countries to three-year highs in 2024. Indonesia's MOP imports rose by about 44pc on the year to 3.44mn t, with increased deliveries from its key suppliers, according to the latest GTT data. Arrivals from Canada doubled to 1.26mn t from a year earlier. Imports from Russia and Belarus also increased to 1.2mn t and 245,000t, up by 42pc and 69pc respectively from a year earlier. Arrivals from Uzbekistan, likely representing product from Belarus, accounted for 406,500t, up by 23pc on the year. NPK deliveries to Indonesia hit 370,800t in 2024, up by 6pc from a year earlier. Around 177,000t of the total imports were sourced from Russia, with 93,000t from Norway. Malaysian MOP imports totalled 1.64mn t in 2024, close to a 20pc increase from 2023. Deliveries from its top supplier Russia reached a record high of 852,000t, up by about 56pc on the year. Arrivals from Canada were flat at 381,000t but imports from the US — which also represents Canadian product shipped from a US port — quadrupled to a 20-year high of 142,200t. The increase in deliveries from the US can be attributed to Canpotex's terminal in Portland, Oregon, resuming potash loadings at the start of 2024 after operations were halted in May 2023. Malaysia's NPK imports rose by about 25pc to 166,500t in 2024, with significant rises in deliveries from its key exporting partners. Arrivals from China rose to 42,000t, up by nearly 35pc from a year earlier, while deliveries from the Netherlands nearly doubled to 28,200t. Palm oil output in Indonesia, the world's top producer, is forecast to grow by nearly 2pc in 2025, according to a Reuters poll, in order to meet the growing demand for palm oil-based biodiesel with a planned increase in the mandatory mix of palm oil in biodiesel in the country in February. This is expected to boost demand for MOP and complex fertilizers, which should continue to support affordability in 2025. The increase in the Indonesian biodiesel mandate is also likely to limit exports from the world's top producer and push Malaysian crude palm oil prices higher in 2025, after hitting a two-year high in 2024. Malaysia is the world's second largest palm oil producer. But adverse weather, persistent labour shortages and low replanting rates may limit production in 2025, officials said. By Camila Tay Malaysian MOP imports 2024 (t) Russia Canada United States Jordan Others YTD January 45,001 59,090 27,500 4,705 4,845 141,141 February 40,000 40,596 5,724 11,000 3,672 100,992 March 67,946 27,495 16,000 2,462 6,603 120,506 April 51,889 47,776 0 2,986 6,629 109,280 May 37,804 38,000 17,018 21,208 38,649 152,679 June 47,913 21,501 17,018 13,898 22,216 122,546 July 100,586 21,979 0 2,007 3,570 128,142 August 65,989 54,048 27,977 4,461 4,781 157,256 September 90,780 15,987 0 6,316 4,285 117,368 October 175,642 21,906 30,890 29,667 12,258 270,363 November 56,476 38 68 3,005 9,273 68,860 December 71,965 33,001 0 23,825 26,596 155,387 Total 851,991 381,417 142,195 125,540 143,377 1,644,520 Source: GTT Indonesian MOP imports 2024 (t) Canada Russia Belarus Laos Others YTD January 143,565 26,000 44,100 12,455 66,458 292,578 February 85,968 85,577 27,508 9,930 60,391 269,374 March 201,828 84,798 0 26,899 43,532 357,057 April 76,856 115,897 10,000 12,203 52,943 267,899 May 119,413 109,895 32,276 25,291 37,142 324,017 June 110,924 77,980 7,995 13,846 2,655 213,400 July 193,302 189,443 0 16,008 2,151 400,904 August 139,323 98,408 19,676 34,092 105,874 397,373 September 0 91,673 40,739 4,201 36,175 172,788 October 46,427 120,395 16,700 17,658 53,071 254,251 November 43,974 66,189 16,480 5,216 49,088 180,947 December 96,907 132,418 29,453 9,989 41,237 310,004 Total 1,258,487 1,198,673 244,927 187,788 550,717 3,440,592 Source: GTT Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Australian beef exports hit record high in January


05/02/25
News
05/02/25

Australian beef exports hit record high in January

Dalby, 5 February (Argus) — Australian beef exports hit a record high in January, with volumes of chilled and frozen beef surpassing the previous high set in January 2020, the Australian Department of Agriculture said. Beef exports reached 81,049t in January 2025, a rise from 75,585t in January 2024 and slightly more than the previous high of 79,221t exported in January 2020. This comes on the back of strong exports in December 2024. Processors typically engage in capacity rebuilding in January after the Christmas holiday break for abattoir staff. Throughput is typically weighed down by weaker cattle availability across northern Australia over the monsoon season in November-April. But exports in January 2025 remained strong despite the challenges, with processing throughput reaching a high of 140,908 heads in the week to 24 January. Exporters took advantage of robust global prices and the availability of cattle because of dry conditions in southern Australia and a late wet season across Queensland and the Northern Territory. The majority of exports in January were sent to the US, accounting for 24,685t or 30pc of total global exports. This is a rise from the 20,308t the US imported in January 2024. Imports to the west coast ports of the US more than doubled compared with a year earlier, reaching 7,112t. Demand from the US was strong, particularly the demand for lean trim, as a result of a domestic production shortage caused by a declining cattle herd. This has pushed up prices for Australian lean trim, with prices for 85CL nearing A$9.50/kg and Bull 95CL surpassing A$10.50/kg, Argus data show. Demand and prices will likely remain steady throughout 2025 because the US cattle herd has yet to begin rebuilding, market participants said. Exports of chilled and frozen beef to Japan and Korea have slightly decreased on the year in January to 15,806t and 10,596t respectively, down by less than 10pc from a year earlier. Higher prices for fatty trim, coupled with weaker local economies, have weighed on Asian demand for Australian beef. But imports to China rose in January 2025 compared with a year earlier, with 15,315t shipped for the month after active buying in December. Exports to other countries including the EU, Canada, Thailand and Dubai also increased in January 2025 compared with a year earlier, on the back of record high volumes of beef production in Australia in 2024. By Amy Phillips Australian beef exports (t) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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