Chinese importers have started to practice “wash out” with Argentine soy oil contracts, which is having an impact on the local industry.
China will import record volumes of U.S. oil and is likely to ship more U.S. soy after Beijing signaled to state-run refiners and grains purchasers they should buy more to help ease tensions between the two top economies, trade sources said on Wednesday.
In their latest monthly report, Conab (National Supply Company) increased their estimate of the 2017/18 Brazilian soybean crop by 1.2 million tons and they slightly increased their Brazilian corn estimate. Conab is now estimating the 2017/18 Brazilian soybean crop at 110.4 million tons which is 1.2 million tons more than last month's estimate (109.1 million tons). If realized, the 2017/18 crop would be 3.6 million tons lower than the 114.0 million tons produced last year (-3.2%).
Argentina's bread-basket province of Buenos Aires will remain mostly dry over the days ahead, meteorologists said on Tuesday, after reporting scant rains over the weekend in the country's biggest and most productive farm area.
The export price of Argentine soy-oil has plummeted 21% so far this year, due to new European bio-diesel tariffs and China’s change of policy, putting one of the country's key industries at risk. Argentina is the world's top exporter of soy-oil, which is used to make bio-diesel.
Trade with China for Argentina has great opportunities but also great threats because the Asian giant is only interested in produce with no added value, warned the head of Argentina’s Industrial Union, Ignacio De Mendiguren.
Dutch carrier KLM announced Wednesday it would begin using used cooking oil for some of its flights. The announcement comes less than two years after the airline flew the first bio-kerosene-fuelled passenger flight in Europe.