Malaysian CPO futures hit record high on supply issues
Flooding across Indonesia and Malaysia pushed third-month crude palm oil futures to close at a record high of 5,164 ringgit/t ($1,236/t) on the fob Bursa Malaysia exchange today.
The monsoon season has curtailed output and exacerbated the ongoing supply-stifling effects of Malaysian labour shortages and high fertilizer costs.
Foreign worker movement restrictions were implemented in 2020 to curb the spread of Covid-19, leaving a dearth of harvesters on plantations ever since.
Kuala Lumpur approved the arrival 32,000 migrant workers to help plug the gap last year. But the workers have yet to arrive and the rapid spread of the Cocid-19 Omicron variant may delay their entry further. Even once they are able to work, training will be required and so it could be weeks or months before they are up to speed, a palm oil producer said.
Palm oil production dropped by 5pc from 2020 levels to a five-year low of 18mn t last year as a result, according to the Malaysian Palm Oil Board.
The rainy season in southeast Asia should subside heading into February, but adverse weather is forecast to persist in South America, which could harm regional soybean crops and drive global vegetable oil prices even higher moving into the second quarter of 2022.
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Baltimore opens third temporary shipping channel
Baltimore opens third temporary shipping channel
New York, 22 April (Argus) — A third temporary shipping channel has opened at the Port of Baltimore to allow more vessel traffic around the collapsed Francis Scott Key Bridge. Located on the northeast side of the main channel, the new passage has a controlling depth of 20-ft, a 300-ft horizontal clearance, and a vertical clearance of 135-ft. When combined with two other temporary channels opened earlier this month the port should be able to handle "... approximately 15 percent of pre-collapse commercial activity," said David O'Connell, the federal on-scene coordinator. The main shipping channel of the Port of Baltimore — a key conduit for US vehicle imports and coal exports — is expected to be reopened by the end of May, the Maryland Port Administration said earlier this month. The bridge collapsed into the water late last month when the 116,851dwt container ship Dali lost power and crashed into one of its support columns. Salvage teams have been working ever since to remove debris from the water and containers from the ship in order to clear the main channel. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US amsul stripping margin rises again in April
US amsul stripping margin rises again in April
Houston, 19 April (Argus) — The stripping margin for ammonium sulfate (amsul), driven by higher amsul prices, continued to rise in April even as variable costs grew. The stripping margin increased by nearly $24/st to $270/st for April, up by 10pc from March and up by 13pc from April 2023. Inland amsul trade exceeded $400/short tons (st) this month on continued supply tightness following production outages in the first quarter. Minimal length at New Orleans (Nola) spurred sellers to offer imported tons as high as $405/st fob for first half May delivery. Participants in the amsul market anticipate values to keep rising into May as supply tightness persists. Higher amsul prices have been partially caused by higher costs for inputs. The Tampa, Florida, ammonia contract rose by 7pc to $475/st in April from the month prior and the sulfur Tampa contract climbed by 17pc to $81 per long ton (lt) from the previous quarter. The cost of ammonia and sulfur were 8pc and 27pc lower than a year earlier, respectively. The total variable cost for amsul rose by $10/st in April to $143/st after holding steady in March. Rising ammonia prices have supported amsul variable costs but gains in the price of ammonia have not been as substantive as the market expected, sources said. Applications of ammonia in the US are slowing, which may weaken the price of the Tampa contract, but production outages could offset seasonal declines. Ma'aden's ammonia II plant is due to undergo a month of maintenance starting mid-April. Sulfur prices are expected to remain firm in the near term but lose momentum entering the third quarter on higher refinery utilization in the US and the return of Chinese exports of MAP and DAP, which could oversaturate the phosphate fertilizer market. Sulfuric acid is used to produce DAP and MAP. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Phosphates: Indian DAP stocks build in March
Phosphates: Indian DAP stocks build in March
London, 19 April (Argus) — DAP stocks rose by the equivalent of 2-3 import cargoes in March, or nearly 86,000t, as imports and local production outstripped offtake. Indian DAP production reached 218,900t in March, according to FAI data, down nearly 41pc on the same month in 2023. DAP imports reached 201,000t in March, down nearly 54pc on March 2023. Sales of DAP reached 334,200t, down nearly 12pc year on year. Stock draw/build, defined as production plus imports minus offtake, was plus 85,700t. This implies that stocks are still close to 2mn t of DAP, as estimated by the Indian government. Full fertilizer year DAP production (April 2023-March 2024) reached 4.29mn t, down around 1pc year on year. Imports were down 15.4pc at 5.57mn t, mainly due to the loss of supply from China owing to customs inspections, with sales at 10.8mn t, up nearly 4pc year on year. By Mike Nash Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
TUI Cruises receives methanol-ready ship
TUI Cruises receives methanol-ready ship
New York, 18 April (Argus) — Cruise ship company TUI Cruises took delivery of a methanol-ready cruise ship which will start operations at the end of June. Methanol-ready vessels allow ship owners to easily retrofit their vessels to burning methanol in the future. The 7,900t deadweight Mein Schiff 7 will operate in the North Sea, the Baltic Sea, along the European Atlantic coast and in the Mediterranean and run on marine gasoil (MGO). It was built by Finland's Meyer Turku shipyard. In January, TUI Cruises signed a memorandum of understanding with trading company Mabanaft for future supply of green methanol. Mabanaft would cover TUI's methanol needs in northern Germany, and gradually add other European locations. Grey methanol was pegged at $717/t MGO equivalent and biomethanol at $2,279/t MGOe average from 1-18 April in Amsterdam-Rotterdam-Antwerp. About 0.9 times and 2.9 times, respectively, the price of MGO, Argus assessments showed. TUI Cruises is a joint venture between the German tourism company TUI AG and US-based cruise ship company Royal Caribbean. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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