US, Canada make rare barley purchases

Spanish Market: Agriculture
11/02/22

The US and Canada are scheduled to receive rare malting barley cargoes from Argentina and Australia, respectively, this month, as drought conditions in North America last summer have weighed on both countries' production of crop.

A US-bound vessel carrying 43,750t of malting barley was scheduled to leave Necochea port in Argentina this week, line-up data show. The cargo is being exported by Argentinian firms Ocaco and Campoamor.

It represents the US' biggest single barley purchase from Argentina since at least 2012, customs data show. Argentina last exported malt barley to the US in 2016, when a small 198t cargo was shipped in January, while shipments of product to the US previously reached an annual high of 2,985t in 2014. It implies that this recent purchase would already put US imports of malting barley from Argentina to a new high this year.

And at least one more US-bound malting barley cargo is scheduled to leave Argentinian ports later this month, participants said.

Meanwhile, GrainCorp is scheduled to ship a 30,000t malting barley cargo to Canada from Port Geelong in Australia on 24 February, according to latest line-up data. No malting barley cargo has previously been shipped in that direction since at least 2012, customs data show.

The US mainly trades barley with Canada only, both importing and exporting product. As for barley for malting purposes specifically, the US imports almost exclusively from Canada but occasionally turns to European supply in years of poor production in North America. In 2021, nearly half of US malting barley imports — 33,000t — came from Denmark.

And Canada — a net exporter of barley — occasionally turns to imports for malting purposes, with most shipments arriving from the US. The country has also bought malting barley from Europe in the past — Germany and Denmark in particular.

But hot and dry weather last summer pressured barley production in both the US and Canada, which hit multi-year lows. Canada and the US harvested some 6.95mn t and 2.56mn t, respectively, for the 2021-22 marketing year, down from 10.74mn t and 3.72mn t a year earlier. At the same time, Canada's already weak exportable surplus quickly depleted this year, amid strong purchasing commitments from China at the start of the marketing season. Canadian barley exports — feed and malt combined — have already reached 1.58mn t so far this year. In comparison, the US Department of Agriculture pegs Canada's barley exports this year at 1.6mn t, implying that there is little left to be shipped until the end of the season.

By Bilal Muftuoglu

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01/04/25

US oil, farm groups push EPA for steep biofuel mandate

New York, 1 April (Argus) — The American Petroleum Institute and biofuel-supporting groups told Environmental Protection Agency (EPA) officials at a meeting today that the agency should sharply raise advanced biofuel blend mandates for 2026. The coalition told EPA that it supported a biomass-based diesel mandate next year of 5.25bn USG, up from 3.35bn USG this year, and a broader advanced biofuel mandate, including the cellulosic category, at 10bn Renewable Identification Number (RIN) credits, up from 7.33bn RINs this year, according to three different groups that attended the meeting. Both mandates would be record highs for the Renewable Fuel Standard (RFS) program. Soybean oil futures and RIN credit prices have risen sharply over the past week on optimism that oil and biofuel interests were working to coordinate volume mandate requests for consideration by President Donald Trump's administration. The coalition is also pushing the agency to set a total conventional volume requirement at 25bn RINs, which would keep an implied mandate for corn ethanol flat at 15bn USG. Ethanol groups had previously eyed a mandate even higher, but limits on the amount of ethanol that can be blended into gasoline make much more-stringent requirements a tough sell to oil refiners. The coalition provided no specific request for the cellulosic biofuel subcategory, where most credit generation comes from biogas. Credits in that category are more expensive, but price concerns have been less potent recently given an EPA proposal to lower previously set cellulosic obligations, signaling that future volume requirements can be cut, too. EPA is aiming to finalize new RFS volume mandates by the end of the year if not earlier, people familiar with the administration's thinking have said. EPA officials signaled at the meeting they were working urgently on the rulemaking. "The agency is intent on getting the RFS program back on the statutory timeline for issuing renewable volume obligation rules," EPA said, declining to comment further on its plans for the rule. The RFS program requires oil refiners and importers to blend biofuels into the conventional fuel supply or buy credits from those who do. Under the program's unique nesting structure, credits from blending lower-carbon biofuels can be used to meet obligations for other program categories. One gallon of corn ethanol generates 1 RIN, but more energy-dense fuels earn more RIN credits per gallon. Some disagreements persist While groups at the meeting were aligned around high-level mandates, how administration officials and courts treat small refinery requests for exemptions from RFS requirements could undercut those targets. Groups present were broadly aligned on asking EPA not to grant widespread exemptions, though there is still disagreement in the industry about how best to account for exempted volumes when deciding requirements for other refiners. Groups present at the meeting today included the American Petroleum Institute and representatives of biofuel producers and crop feedstock suppliers. Some groups that previously engaged with the coalition's efforts to project unity to the Trump administration were not present. And some groups more historically skeptical of the RFS and more supportive of small refinery exemptions — including the American Fuel and Petrochemical Manufacturers — have not been closely involved. Fuel marketer groups notably did not attend the meeting after a representative sparred with others in the coalition at an American Petroleum Institute meeting last month. Some retail groups, including the National Association of Convenience Stores and the National Association of Truck Stop Operators, instead sent a letter to EPA today arguing that the groups pushing steep volumes are discounting potential headwinds to the sector from new tax credit policy. Some of the groups advocating for higher biofuel volumes have pointed to high production capacity and feedstock availability, but have preferred to ignore thornier issues like tax credits, lobbyists say. "An overly aggressive increase in advanced biofuel blending mandates under the RFS will be punitive for American consumers" without extending a long-running $1/USG tax credit for biomass-based diesel blenders, the retailers' letter said. That incentive expired last year and was replaced by the Inflation Reduction Act's "45Z" credit, which offers subsidies to producers instead of blenders and throttles benefits based on carbon intensity. Generally lower credit values for biomass-based diesel — coupled with the US government's delays setting final regulations on qualifying for the credit — have spurred a sharp drop in biofuel production to start the year. Without a blenders credit, the RFS volume mandates pushed by some groups could increase retail diesel prices by 30¢/USG, the fuel marketers estimate, a potential political headache for a president that ran on curbing consumer costs. Other biofuel groups say that extending the credit would be an uphill battle this year, with some lawmakers and lobbyists instead focused on legislatively tweaking the 45Z incentive's rules to benefit crop feedstocks instead of reverting wholesale to the prior tax policy. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil's Mato Grosso corn planting reaches 100pc

31/03/25

Brazil's Mato Grosso corn planting reaches 100pc

Sao Paulo, 31 March (Argus) — The 2024-25 winter corn planting in Brazil's central-western Mato Grosso state reached 100pc of the expected area as of 28 March, which concludes the planting season, according to the state's institute of agricultural economics Imea. That is slightly ahead of the five-year average of 99.9pc. At the same time a year earlier, the 2023-24 crop was fully sowed as well. Soybean Mato Grosso's 2024-25 soybean harvesting is not yet complete. Harvesting reached 99.9pc as of 28 March, an advance of 0.4 percentage points on the week, according to Imea. That is ahead of the 99.7pc harvested at this time a year earlier for the 2023-24 crop and above the five-year average of 98.9pc. Cotton Mato Grosso completed sowing the 2024-25 cotton crop as of 28 February, but harvesting is yet to begin. Activities usually start around mid-June, according to Imea. By Sofia Zizza Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Argentina soy harvest starts, rain slows corn progress

28/03/25

Argentina soy harvest starts, rain slows corn progress

Sao Paulo, 28 March (Argus) — Argentine soybean farmers began harvesting during the past week and the corn harvest continued to advance even as rain in some areas hindered work in the fields. The first delivery of soybeans from Argentina's current growing season was received earlier this week at a Cofco processing plant in the town of Timbúes, the Rosario Board of Trade (RBT) reported. The oilseeds came from fields that were harvested on 21 March, with an estimated yield of about 4.5 metric tonnes (t) per hectare (ha), well above the RBT's forecast for average yields of 2.8 t/ha at the national level for this year. Soybean crops in parts of Argentina's most important agricultural regions are ready to be harvested, or very close to being ready, and harvesting work should accelerate in coming days, according to the Buenos Aires Grain Exchange (Bage). Argentina's corn farmers made good progress with their harvesting last week as early-planted corn matures and after some fields of later-planted corn developed early because of drought stress, Bage said. But work has been slowed in some areas by recent rains that left fields inaccessible. More precipitation is forecast for the next few days in many of the country's key crop-producing areas, which could hamper both the corn and the soybean harvests. The corn harvest was reported as having completed 19.2pc of the estimated area planted as of 26 March, up from 13.6pc a week earlier. Corn yields averaged 8.4 t/ha at the national level, with average yields in some regions reaching 9.6 t/ha, the Exchange said. With the progress in corn harvesting and the looming soybean harvest, farmers' sales of both crops jumped in the week ending 19 March, according to the Economy Ministry. Export sales of soybeans more than doubled to 200,800t from 98,700t the previous week, and export sales of corn jumped 72pc to 699,000t. By Jeffrey T. Lewis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

French wheat trades to Morocco as price drops

28/03/25

French wheat trades to Morocco as price drops

Paris, 28 March (Argus) — Two cargoes of French wheat have traded for April loading to Morocco as the lowest offer price shed $7/t on the day at Thursday's close. Two Handysize cargoes traded in basis terms to Paris-listed wheat futures late on 27 March, traders said. Various sellers had quoted French wheat for April loading cfr Casablanca at a €15-18/t premium to Euronext May futures, according to market participants from both the buy and sell side. This compared with a consensus among cfr sellers at €18-19/t above May futures earlier this week. Thursday's drop in basis accelerated a slide in underlying futures. The May and September contracts closed at parity that day, widening the discount to December futures, as traders anticipated high carryover stocks and a slow start to France's 2025-26 export season. Offers of 11-11.5pc wheat from Baltic ports remained the closest competitors for French sellers in Morocco. But higher freight rates from Baltic ports — latest levels were around €8-9/t above rates from Rouen — put sellers there at a distinct disadvantage, despite relatively low offers for Kazakh-origin wheat available for loading at Baltic ports in recent days. Moroccan stocks replenished Any trades for April shipment will add to a long line of vessels that loaded in March and are either on their way to Moroccan ports or have arrived and are waiting to offload. Poor weather and ocean swells over the past few months have caused considerable delays to port operations. As of 27 March, as many as nine vessels carrying wheat that had set sail in February or March were still waiting to offload in Morocco, data from port authorities show. Ships carrying other commodities are also delayed, with market participants expecting that it could take up to a fortnight to clear the current backlog. Around another 15 ships, mostly loaded from French or Baltic ports in late-March, had yet to arrive, Argus - aggregated data show . This means that Moroccan millers could receive 800,000t of milling wheat in the next two weeks, enough for nearly two months of consumption. French wheat prices remain under pressure The potential of further demand from Moroccan importers in the coming days is likely to keep French prices low. Moroccan traders had mostly withdrawn from the market before Thursday, on expectations of a sharp fall in the rebate that the government will award to cargoes booked for April loading. The April rebate is currently estimated at around 8 dirhams/100kg, compared with the Dh14-15/100kg announced for the previous three months. This means that buying ideas for April cargoes are well below levels paid for March. And French exporters are keen to clear silos to make space for the upcoming June-July harvest and reduce the volume carried over into the new marketing year. In France, the local market was liquid for delivery to both Rouen and La Pallice over the past two days, with wheat changing hands at parity or just below the May futures contract on a cpt basis. French port silos remain fairly full with old-crop wheat, particularly at ports on the western Atlantic coast, given that sellers executed the vast bulk of the volume traded to Morocco for March loading from the northern port of Rouen. By Claudia Jackson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Oil, biofuel groups meet to align on RFS policy

27/03/25

Oil, biofuel groups meet to align on RFS policy

New York, 27 March (Argus) — Energy and farm groups met last week at the American Petroleum Institute to negotiate a joint request for President Donald Trump's administration as it develops new biofuel blend mandates, according to five people familiar with the matter. The private meeting involved groups from across the supply chain, including representatives of feedstock suppliers, biofuel producers, fuel marketers, and oil refiners with Renewable Fuel Standard (RFS) obligations. The groups coordinated earlier this year around a letter to the Trump administration on the need to update the RFS and are now seeking agreement on other program elements. According to the people familiar with the matter, the groups agree on pushing the Environmental Protection Agency (EPA) to set higher blend mandates under the program's D4 biomass-based diesel and D5 advanced biofuel categories. Groups support slightly different volume targets that are nevertheless all in "a rounding number of each other" in the D4 category, according to one lobbyist. But there is still disagreement about whether to ramp up mandates quickly in 2026 or provide a longer runway to higher volumes. Clean Fuels Alliance America and farm groups have publicly supported a biomass-based diesel mandate of at least 5.25bn USG starting next year, which could justify a broader advanced biofuel mandate above 9bn USG, according to the people familiar, though others worry about fuel cost impacts if mandates spike so quickly. The current mandate for 2025 is 7.33bn USG in the advanced biofuels category, including a 3.35bn USG mandate for the biomass-based diesel subcategory, so the volumes being pushed for future years would be a steep increase. The RFS, highly influential for fuel and commodity crop prices, requires oil refiners and importers to blend annual amounts of biofuels into the conventional fuel supply or buy Renewable Identification Number (RIN) credits from those who do. The idea behind the groups' coordination is that the Trump administration might more quickly finalize RFS updates if lobbyists with a history of sparring over biofuel policy can articulate a shared vision of the program's future. One person familiar said the effort comes after the Trump administration directed industry to align biofuel policy goals, though others said they understood the coordination as largely voluntary. EPA did not provide comment. There is less agreement around the program's D6 conventional biofuel category, which is mostly met by corn ethanol. Oil groups have in the past criticized EPA for setting the implied D6 mandate at 15bn USG, above the amount of ethanol that can feasibly be blended into gasoline, though excess biofuels from lower-carbon categories can be used to meet conventional obligations. Ethanol interests support setting the D6 mandate even higher than 15bn USG, which could be a tough sell. The discussions to date have not involved targets for D3 cellulosic biofuels, a relatively small part of the program. A proposal to lower 2024 volumes has hurt D3 credit prices, signaling that future mandates are effectively optional, according to frustrated biogas executives , and has reduced the salience of the issue for other groups. A proposal from President Joe Biden's administration to create a new category called "eRINs" to credit biogas used to power electric vehicles has similarly not come up. "We're not expecting to see any attempt to include eRINs in this next [RFS] proposal," Renewable Fuels Association president Geoff Cooper told Argus earlier this month. The meeting last week was largely oriented around the RFS, though a National Association of Truck Stop Operators representative raised the issue of tax policy too. The group has been frustrated by the expiration of a long-running blenders credit and the introduction this year of a less generous credit for refiners, which is only partially implemented and has spurred a sharp decline in biomass-based diesel production. But others involved in negotiations, while they acknowledge tax uncertainty could hurt their case for strong mandates, are trying to avoid contentious topics and focus mostly on volumes. Republican lawmakers are separately weighing whether to keep, repeal, or adjust that credit to help out fuel from domestic crops, and there is no telling how long that debate might take to resolve. Another thorny issue discussed at the meeting is RFS exemptions for small refineries. Biofuel producers strongly oppose such waivers and say that exempted volumes should at least be reallocated among facilities that still have obligations. Oil groups have their own views, though it is unclear how involved the American Fuel and Petrochemical Manufacturers — which represents some small refiners and has generally been more critical of the RFS than the American Petroleum Institute — are in discussions. EPA is aiming to finalize new volume mandates by the end of this year , people familiar with the administration's thinking have said, though timing for a proposal is still unclear. Future conversations among energy and farm groups to solidify points of unity — and strategize around how to downplay disagreements — are likely, lobbyists said. RIN prices rally Speculation over the trajectory of the RFS, and the potential for higher future volumes, supported soybean oil futures and widened the bean oil-heating oil (BOHO) spread. The BOHO spread maintains a positive correlation with D4 RIN prices as a widening value raises demand for D4 credits as biofuel producers look to offset higher production costs. Thursday's session ended with current-year ethanol D6 credits valued between 79¢/RIN and 82¢/RIN, while their D4 counterparts held at a premium and closed with a range of 84¢/RIN to 89¢/RIN. These gains each measured more than 5.5pc growth relative to Wednesday's values. By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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