Brazil could lead exports amid Argentine soya loss

With Argentina expected to export its lowest volume of soyabean meal this year since 2003, Brazil could become the leading global exporter in the 2022/23 marketing year, according to data from the Rosario Grains Exchange (BCR) reported by AgriCensus on 4 April.

Argentina had been the world’s leading soyabean meal exporter since 1998 with the commodity being the country’s main export product.

However, the BCR had forecast soyabean meal production in Argentina at 20.9M tonnes in the current marketing year and meal exports at 20M tonnes due to the country's worse drought in 60 years, AgriCensus wrote.

Meanwhile, the US Department of Agriculture (USDA) has projected Brazil’s soyabean meal production at 40.8M tonnes and its exports at

21.1M tonnes in 2022/23.

If the BCR’s projections are realised, it would put Brazil ahead of Argentina in terms of soyabean meal exports, according to the report.

The USDA lowered its soyabean production estimates for Argentina in its 14 April forecast to 23.9M tonnes – its lowest level in 24 years.

Meanwhile, Brazil was expected to harvest its biggest soyabean crop on record this season, with the USDA estimating production at 153M tonnes and Brazilian food agency Conab putting the figure at 151.4M tonnes.

● Argentine biodiesel exports to Europe are set to fall 50% this year due to the country's severe drought, El Destape wrote on 21 March. The loss equated to US$900M in value terms, against US$1.8bn or 1.2M tonnes last year.

Canada bans lambda-cyhalothrin insecticide

products and/or with active ingredients registered for use in Canada, the report said.

The ban could affect planting decisions in the 2023/24 marketing year, the report said.

It would cover all registered commodities from the oilseeds crop group, except for flax seed, mustard seed (oilseed type), and rapeseed (including canola) and soyabeans.

Canada’s decision to ban the domestic use of lambda-cyhalothrin insecticide on all crops and commodities for animal feed from April could affect dynamics in the feed sector, according to a 27 March US Department of Agriculture

(USDA) report.

In addition to new labelling requirements, anyone delivering foreign or domestic grain to a grain handling facility in Canada would have to declare that they had only been treated with crop protection

In addition, maximum residue limits (MRL) will be reduced for nearly 50 animal, horticultural and field crop commodities to the limit of 0.01 parts per million (ppm) due to concerns over risks to human health. These MRLs would be applied domestically and on any imports of these commodities.

European Parliament adopts anti-deforestation legislation

The European Parliament (EP) adopted the EU Deforestation Regulation (EUDR) on 19 April but some oleochemical groups are concerned the law could limit key feedstocks into Europe and exclude palm oil smallholders, Argus Media wrote on 21 April.

Under the new law, companies would need to ensure products sold in the EU had not led to deforestation and forest degradation after 31 December 2020, the EP news service wrote on 19 April.

The EUDR applies to cattle, cocoa, coffee, palm oil, soyabeans and wood, as well as products that contain, have been fed with, or been made from them. Rubber, charcoal, printed paper products and a number of palm oil derivatives were also added to the list during negotiations, the EP report said.

The regulation requires mandatory due diligence from operators and traders selling and importing palm oil and derivatives, including glycerine with over 95% purity, oleic, stearic and palmitic fatty acids and industrial fatty alcohols, Argus Media said.

The European Oleochemicals and Allied Products Group and the European Committee of Organic Surfactants and their Intermediates said the requirement to supply geo-location co-ordinates created a barrier to include palm oil smallholders.

Once the EUDR text has been formally endorsed, it will be published in the EU Official Journal and take effect 20 days later.

USA: Canadian renewable fuel and feedstocks supplier Targray has opened two new biodiesel terminals in Oregon state.

The new terminals are located in Portland and Eugene and are strategically positioned to supply wholesale fuel distributors, retailers and refineries in the state, which has a mandatory 5% biodiesel blending requirement in place, according to a Targray statement on 9 March.

EU: A provisional agreement on the EU’s revised Renewable Energy Directive (RED III) includes a 5.5% target for advanced biofuels, the European Commission (EC) announced on 30 March.

The proposal sets out a combined 5.5% sub-target for advanced biofuels (generally derived from nonfood based feedstocks) and renewable fuels of non-biological origin (mostly derived from renewable hydrogen and hydrogen-based synthetic fuels) in the share of renewable energy use in the transport sector in 2030.This includes a minimum level of 1% for renewable fuels of non-biological origin.

“The revision of RED is one of the ‘Fit for 55’ proposals presented by the Commission in July 2021 to make the EU’s climate, energy, land use, transport and taxation policies fit for reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels,” the EC said.

“Ramping up our production and use of renewable energy is also a key pillar of the REPowerEU Plan, the EU’s strategy to get rid of Russian fossil fuel imports as soon as possible.”

Overall, the new proposals would raise the EU’s binding renewable target to a minimum of 42.5% for 2030, up from the current 32% target.