Malaysia and Indonesia discuss plans to export crude palm oil (CPO) for biodiesel to China. The two countries discussing the plan to export CPO to China. The latter is seeking to adopt 5% biodiesel blended with petroleum diesel (B5) program. China is eyeing biodiesel as it increases environmental control. The implementation of the B5 program would create a large CPO market. Therefore, Indonesia and Malaysia ought to cooperate to meet China demand. Malaysia wishes to expand biodiesel market to other countries, such as India and the Philippines.
U.S. sells soybeans and meal.
The U.S. private exporters sold 132,000 tonnes of U.S. soybeans to China for delivery in the 2017/18 marketing year that begins Sept. 1, 2017. Private exporters sold 105,500 tonnes of U.S. soymeal to Thailand for delivery in the 2017/18 marketing year that begins Oct. 1, 2017.
India Soybean output may fall 17%.
Despite the government efforts to reduce India dependence on imported edible oil by increasing local oilseed production, soybean output is likely to decline by 17 per cent this kharif harvesting season. The decline is attributed to lower sowing area and reports of crop damage following a long dry spell in the peak planting season. Sowing of soybean crop is almost complete by mid-August, with little chance of further addition of kharif acreage. Apart from that, there was a long dry spell this monsoon season. Experts believe the standing crop got damaged due to deficiency of moisture in the peak germination period.
US ethanol market criticizes Brazil decision to levy 20% import tariff.
US ethanol market participants and trade groups decried the Brazilian government decision to levy a 20% tariff on ethanol imports above 600 million liters. Brazil, the second largest ethanol producer in the world, began importing large volumes of ethanol in 2016 as high sugar prices made the sweetener more attractive to sugarcane mills than ethanol. Through June, the US exported over 1.045 billion liters of ethanol to Brazil. That could mean that any further exports to Brazil would be subject to the 20% tariff. But it does not appear that exports from earlier this year above the 600-million-liter level would be affected by the tariff.
Sugar prices gain, as Brazil tax move spurs talk of political favor.
Sugar prices extended their revival, returning above 14 cents a pound at one point, after Brazil unveiled a 20% tax on Brazil ethanol imports, in the latest of a series of moves by the top producing country of the sweetener deemed potentially positive for values. Raw sugar futures for October stood 2.1% higher at 13.95 cents pound in midday deals in New York, taking close to 8% the contract revival from a mid-month low. Earlier the contract touched 14.06 cents a pound.