Chart of the Week (23) — Argentina Accounts for Almost Two Thirds of EU Biodiesel Imports − Indonesia Is the Largest Palm Oil Exporter to the EU

Argentina, Business News/Analysis, China, European Union (EU), Feedstocks, Field/Orchard/Plantation Crops/Residues, Indonesia, Malaysia, Marketing/Market Forces and Sales, Opinions, Policy

June 12, 2018

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(Union zur Förderung von Oel- und Proteinpflanzen (UFOP)) Biodiesel imports from Argentina have increased considerably over the past several months. In contrast, imports of soybean oil as feedstock from Argentina have been virtually non-existent. The reverse trend can be seen in regard to imports from Indonesia. Since EU import duties were lowered in September 2017, deliveries of Argentine SME (soy methyl ester) have been on a steady increase. By the end of March 2018, they amounted to 915,983 tonnes, which translates to 62 per cent of all EU biodiesel imports. Because of anti-dumping duties, there had not been any biodiesel shipments from Argentina for four years. The EU imported 203,002 tonnes of PME (palm oil methyl ester) from Malaysia, 160,200 tonnes from China, and only 26,700 tonnes from Indonesia. Most Argentine biodiesel shipments went to the Netherlands and Spain. Deliveries of Argentine soybean oil in the same period was negligible at 155 tonnes. These figures underline the success of the Argentine government’s export promotion policy in support of its domestic biodiesel industry, the Union zur Förderung von Oel- und Proteinpflanzen (UFOP) has noted. UFOP has repeatedly pointed out that the subsidies granted by the Argentine government have a market distorting effect. The association sees the current situation as proof that fears of a surge of extremely large quantities of biodiesel from Argentina into the EU, thereby putting pressure on vegetable oil prices, are coming true. UFOP has criticised that although this development results from the surplus in the global vegetable oil markets, the price fall is also at the expense of Argentine soybean producers. The association therefore expressly welcomes that, alongside the anti-subsidy proceedings against Argentina, import volumes are being recorded since the end of May. If the proceedings have a positive outcome, duties will have to be paid on these volumes in retrospect. READ MORE

UPDATE 1-Wilmar halts buying from suppliers accused of deforestation by Greenpeace (Reuters)

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