NEWS
Some food export bans imposed Various countries around the world have banned exports of certain food commodities, including edible oils and oilseeds, to protect domestic supplies in the wake of the COVID-19 pandemic. The customs union of Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia announced on 2 April that it would restrict exports of sunflowerseeds, soyabeans and rye until 30 June, effectively from 12 April, according to Reuters. Romania suspended most exports of grains, oilseeds and related products to markets outside of the EU, effective 10 April, World Grain said on 16 April. The measure included exports of barley, corn,
IN BRIEF AUSTRALIA: Canola production is expected to rebound in 2020-21 after several years of below average output due to drought, according to a US Department of Agriculture (USDA) report on 6 April. The Global Agricultural Information Network report said higher prices and improved soil moisture at planting were expected to result in an expansion of canola planted area. Canola output was forecast to rise by 800,000 tonnes from the previous year to reach 3.1M tonnes in 2020/21, significantly more than in the past two years. Exports were expected to reach 2.2M tonnes in 2020/ 21, up 600,000 tonnes from the previous year.
oats, rice, wheat, wheat flour, soyabeans and meal, sunflowerseeds and oil, sugar, bakery products and oil cakes. Serbia also banned exports of unprocessed sunflowerseed, sunflower oil and semi-processed oil, N1info.com reported on 17 March. Top wheat exporter Russia approved a 7M tonne quota for grain exports from April to June. The move, announced on 2 April, was unlikely to have a strong market impact as this was the volume the country had been expected to export for the period, Reuters said. World number three rice exporter Vietnam temporarily suspended rice export
contracts until 28 March, while Ukraine’s economy ministry said it was monitoring wheat exports and would take necessary measures if required, Reuters said. Industry experts stressed that staple crops such as soyabeans, corn, rice and wheat were available in abundance and nations had no reason to stockpile, urging nations to cooperate. “Given the problem that we are facing now, it’s not the moment to put these types of policies into place,” said Maximo Torero, chief economist at the UN’s Food and Agriculture Organization. “On the contrary, it’s the moment to cooperate and coordinate.”
China to allow some Canadian imports China will allow some canola seed imports to continue from top world supplier Canada despite its year-long trade dispute with the country, Reuters reported on 31 March. Last March, China stopped buying canola from Canada’s two top exporters, Richardson International and Viterra Inc, citing insect and weed contamination in shipments, although it was suspected that the move was linked to Canada’s arrest of Meng Wanzhou, vice president of Chinese technology firm Huawei. Shipments from other Canadian firms were still allowed but an agreed standard between the two countries on the amount of foreign material allowed per shipment was due to expire on 31 March, Reuters said. Canadian agriculture minister Marie-Claude Bibeau said on 31 March that Beijing would allow imports to continue provided shipments contained less than 1% foreign material such as straw or chaff. However, no agreement had been reached regarding exports from Richardson and Viterra. China is Canada's biggest canola market.
Palm oil futures plunge as crude oil prices go below zero Malaysian palm oil futures plunged 7.5% on 21 April to their lowest level since last August in reaction to US crude oil trading negatively, AgriCensus reported on 21 April. With global demand for both vegetable and mineral oils dropping, this was the first time in history that US crude oil had fallen below zero. Benchmark West Texas Intermediate (WTI) futures for May delivery settled 4 OFI – MAY 2020
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at minus US$37.63/barrel on 20 April, as traders struggled to store a glut of oil caused by COVID-19 lockdown measures hitting fuel use and demand. Meanwhile, the benchmark July crude palm oil futures contract (FCPO) on Bursa Malaysia fell to MYR2,604/tonne (US$469.84/tonne) by close on 21 April – its biggest daily loss since mid-January and down 34% since the start of 2020.
“Palm oil was relying on palm-based biodiesel blends to absorb the increasing production in Indonesia and Malaysia but ... extremely low gas oil prices – together with curbed transport – has put biodiesel use in question,” Anilkumar Bagani, research head at Mumbai-based vegetable oil broker Sunvin Group, told AgriCensus. Vegetable oil futures in China also fell, with soyabean and
palm oil futures on the Dalian Commodity Exchange shedding 1-5% across the board and rapeseed oil futures on the Zhengzhou Commodity Exchange slumping 1-3%. In the USA, soyabean oil futures on the Chicago Board of Trade for July delivery had been trading 2.9% lower at US$564.61/tonne, its lowest level since 23 March, AgriCensus aded. www.ofimagazine.com
04/05/2020 10:36:02
