Indonesia to revoke palm export ban from 23 May
Jakarta will allow exports of palm oil from 23 May, according to an announcement from Indonesia's president Joko Widodo on 19 May.
Whether exports of waste-based biofuel feedstocks used cooking oil and affected palm oil mill effluent HS codes will also be allowed to resume from Monday was not immediately clear.
The palm oil export ban will be lifted, despite Indonesian bulk cooking oil prices not having dropped below 14,000 rupiah/litre ($1/l) as intended, to alleviate pressure on the country's 17mn palm industry workers as domestic oil supply had already exceeded demand, Widodo said.
The government has been under pressure from palm oil lobby groups within the country to reverse the ban since it was implemented on 28 April, because of concerns surrounding domestic palm oil storage capacity limits, export revenue losses, and the impacts of currency deflation.
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Peninsula eyes B100 marine fuel supply in Barcelona
Peninsula eyes B100 marine fuel supply in Barcelona
London, 24 April (Argus) — Marine fuel supplier and trader Peninsula has added a chemical tanker to its fleet in Barcelona, with a view to supply the port with B100 marine biodiesel. Aalborg meets chemical tanker regulations under the International Maritime Organisation (IMO)'s International Convention for the Prevention of Pollution from Ships (MARPOL) Annex II. This means the tanker can supply marine biodiesel blends containing up to 100pc fatty acid methyl ester (Fame), which conventional oil tankers are unable to do . Oil tankers and barges are limited to up to 25pc Fame. Peninsula added that the Aalborg is also used to supply conventional fossil bunker fuels such as very-low sulphur fuel oil (VLSFO) and marine gasoil (MGO). It is yet to complete a B100 delivery in Barcelona. Market participants pointed to limited demand for B100 in the Mediterranean, but regulatory changes such as the introduction of FuelEU maritime next year may help to support demand for marine biodiesel blends. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil 1Q tallow exports triple on long-term contracts
Brazil 1Q tallow exports triple on long-term contracts
Sao Paulo, 22 April (Argus) — Brazilian beef tallow exports totaled 73,930 metric tonnes (t) in the first quarter, a three-fold increase from the same three-month period in 2023 on rising demand. Almost 93pc of outflows between January and March were shipped to the US, according to data from Brazil's trade ministry. Long-term contracts explain the rising flow of exports, even though spot market arbitrage was closed throughout the first quarter (see chart) . The price of tallow in the Paranagua and Santos ports was $960/t fob on 19 April, keeping the arbitrage closed to US Gulf coast buyers, where the reference product was at $901/t on a delivered inland basis. Brazilian tallow is also negotiated at a premium against soybean oil, which closed at $882/t fob Paranagua on 19 April. This scenario has been observed since the 1 December 2023 start of Argus ' tallow export price assessment. Historically, vegetable oil in Brazil was traded at a discount to tallow, but strong demand has boosted the price of animal fat. Some biodiesel plants have been purchasing used cooking oil (UCO) or pork fat as an alternative. In 2023, there were doubts about whether the outflow of tallow from Brazil would be constant. Market participants now believe that the 2024 start of operations at new renewable diesel refineries in the US should sustain exports. Local suppliers that have already signed supply guarantee contracts — some up to three years — with American buyers are also considering export opportunities with Asia, including a new renewable diesel plant in Singapore that could receive Brazilian cargoes. Expansion projects are propelling US demand, including work that would bring capacity at Marathon Petroleum's Martinez Renewables plants in California to 2.35mn m³/y (40,750 b/d)and the Phillips 66 Rodeo unit in northern Californiato 3mn m³/y. These and other new projects will increase annual US demand for tallow by 5mn t. Maintenance on the horizon Maintenance at US refineries has Brazilian sellers bracing for a short-term drop in prices. Between May and June the Diamond Green Diesel (DGD) unit in Port Arthur, Texas, will shut down for maintenance, a stoppage that could impact demand for Brazilian inputs. Market participants have already observed a slight increase in domestic tallow supply, a change they attribute to maintenance at DGD. The advance of the soybean crop in Argentina is also expected to increase the supply of feedstocks to North American plants, as some refineries are returning to soybean oil after a hiatus of several years. The soybean oil quote on the Chicago Board of Trade (CBOT) is an important reference for the price of tallow. By Alexandre Melo Renewable feedstocks in Brazil on fob basis R/t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EU wheat yield forecasts rise
EU wheat yield forecasts rise
New York, 22 April (Argus) — Warm weather improved forecasted wheat yields in the EU, according to the latest Monitoring Agricultural Resources (Mars) report from the European Commission (EC). In the April Mars report, the EC cited warm spring temperatures as well as adequate water supplies as the main reasons for its increased yields forecast for the 2024-25 marketing year. In Spain and Portugal forecast yields were increased for durum wheat. The EC anticipates soft wheat yields at 5.93t/ha, compared with 5.91t/ha in the prior estimate. Similarly, durum wheat estimated yields stand at 3.47t/ha compared with 3.44t/h in the prior estimate. By Eduardo Gonzalez Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Feed grains: CVB corn offers decline
Feed grains: CVB corn offers decline
London, 22 April (Argus) — Sellers of Romanian-Bulgarian corn loading at the ports of Constanta/Varna/Burgas (CVB) lowered their offers on Monday, pushing the price closer to the levels of Ukrainian-origin product loading at the ports of Pivdennyi/Odesa/Chornomorsk (POC). As for Ukraine's feed grain market, prices at the country's deep water ports closed flat on Monday. Trading interest was limited, but could pick back up later in the week. Rail operator Ukrzaliznytsia lifted its suspension of rail deliveries to Chornomorsk. Elsewhere, Argentina's spot corn price firmed on an fob upriver/Necochea/Bahia Blanca basis on Monday. Sellers stayed away from the market, because of prevailing worries about corn output, at risk from rains delaying harvesting, and from yield losses caused by corn stunt . Further out, Argentina's 2024-25 corn crop planted areas could shrink on the year, as producers mull planting less because of issues with the ongoing harvest, market participants said. As for barley, prices for French new-crop barley could see support from farmers' reluctance to sell because of worries around the 2024-25 production. Barley crop conditions have fallen considerably from the previous two seasons, with 67pc of areas rated "good-to-excellent" as of 14 April, down by 24 percentage points (pp) on the year and by 20pp from two years ago. Meanwhile, France's corn planting pace has lagged behind previous years, but if weather improves, farmers could speed it up with limited effect on production, market participants said. Elsewhere, China's Ministry of Agriculture and Rural Affairs (Mara) forecast record corn production in 2024-25 at 295.5mn t, up by 6.7mn t on the year. Such an increase would likely cut China's feed grain import demand. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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