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Low water spurs Mississippi River restrictions

  • Spanish Market: Agriculture, Coal, Fertilizers, LPG, Petroleum coke
  • 27/08/24

The US Coast Guard implemented draft restrictions for the lower Mississippi River yesterday as water levels fall.

Beginning from around Tiptonville, Tennessee, to Rosedale, Mississippi, southbound barge drafts cannot be greater than 11ft and tow more than seven barges wide. Southbound transit from Rosedale to Tunica, Mississippi, cannot have a draft deeper than 11.5ft. Northbound drafts from Tunica to Tiptonville cannot be greater than 10ft.

The operating drafts were reduced to 9ft in mid-October, but water levels began declining in June last year.

The low water threshold of -2ft has been passed at Tunica Mhoon Landing, Mississippi, reaching -3.4ft. Memphis, Tennessee is only 2.5ft above its low water threshold. The US Coast Guard has initiated a 9ft draft requirement over the last two years when several points along the lower Mississippi have fallen below their low water threshold. Multiple sites on the lower Mississippi are forecast to reach their low water thresholds by the second week of September, according to the National Weather Service.

Southbound freight rates are likely to rise as draft restrictions force barge carriers to employ larger fleets to move the same volumes, especially as crop harvests continue. With restrictions on the number of towable barges, more transits will have to occur for both south and northbound products.

Grain exporters at New Orleans have taken to the sidelines as the risk of grain being caught on the lower Mississippi River has increased.


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14/01/25

Tráfego de caminhões ao porto de Santos será ampliado

Tráfego de caminhões ao porto de Santos será ampliado

Sao Paulo, 14 January (Argus) — O estado de São Paulo pretende expandir a capacidade de tráfego de caminhões na principal rota de acesso ao porto de Santos. O projeto de expansão inclui uma nova pista de 21,5 km e 4 km de viadutos ao longo do sistema rodoviário Anchieta-Imigrantes. A nova pista mais do que dobraria o acesso de caminhões a Santos, de acordo com o governo estadual. O sistema Anchieta-Imigrantes tem extensão de 176,8 km, com tráfego anual de 40 milhões de veículos e é a principal conexão entre o litoral e o interior de São Paulo — um importante polo de produção de café, cana-de-açúcar e cítricos. O governo do estado e a Ecovias, concessionária que administra o sistema viário, anunciaram o projeto em 10 de janeiro e agora trabalham no processo de licenciamento ambiental, que pode ser concluído no primeiro semestre de 2026. As próximas fases do projeto incluem estudos técnicos para construção da estrutura e levantamento de custos totais de investimento. Não há previsão para o início ou conclusão do projeto de expansão. O porto de Santos é um dos principais centros de importação e exportação do país. A movimentação de carga totalizou 167,1 milhões de toneladas (t) em janeiro-novembro de 2024, aumento de 6pc em relação ao mesmo período no ano anterior, de acordo com a autoridade portuária. Por Bruno Castro Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2025. Argus Media group . Todos os direitos reservados.

Nutrient affordability remains weak into 2025


13/01/25
13/01/25

Nutrient affordability remains weak into 2025

London, 13 January (Argus) — Global fertilizer affordability is still weak into 2025 as high fertilizer prices — mainly for urea — continue to weigh on farmer affordability. Nutrient affordability fell to 0.94 points in the first week of January, unable to recover from a declining trend that started in October 2024. An affordability index — comprised of a fertilizer and a crop index — above one indicates that fertilizers are more affordable, compared with the base year, which was set in 2004. An index below one indicates lower nutrient affordability. The fertilizer index — ⁠which includes global prices for urea, DAP and potash, adjusted by global usage — ⁠reached the highest value since October, driven by firmer urea prices, which weighs heavily on the fertilizer index owing to the relatively higher global usage when compared with DAP and potash fertilizers. Prices for urea climbed to levels last seen in late 2023, with activity ramping up across the globe. Prices appear well supported through the month with India entering the market over the weekend, seeking 1.5mn t of urea for loading by early March. A slight increase in the crop index owing to a rise in the first week of January for corn and soybeans was unable to offset higher fertilizer prices as the new year started. Crop prices for corn and soybeans, which represent 52pc of global consumption for key crops, also rose into early January following lower production estimates made by the US Department of Agriculture (USDA) for the upcoming crop campaign in the US. The USDA revised earlier estimates made for the 2024-25 corn and soybeans crop by 1.8pc and 2pc, respectively. By Lili Minton and Harry Minihan Global fertilizer affordability Index Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India's coal output hits all-time high in 2024


13/01/25
13/01/25

India's coal output hits all-time high in 2024

Singapore, 13 January (Argus) — India's coal production hit an all-time high last year, led by an uptick in utility demand and a broader government push to boost domestic output. Combined coal output from domestic sources such as state-controlled Coal India (CIL), Singareni Collieries (SCCL) and captive blocks reached 1.04bn t in calendar year 2024, up by 7pc or 70.4mn t from a year earlier, according to Argus calculations based on coal ministry data. This supported overall supplies, including supplies to utilities and the non-power sector, which reached 1.01bn t, from 950.2mn t in 2023. The steady increase in domestic coal output and supplies was also led by demand from utilities, as the country's coal-fired generation rose last year, and generators continued to replenish stocks to meet the rising power demand. The strong output also followed India's broader goal to raise local coal production, with an aim to trim imports and meet its broader energy security objective. Delhi has been pushing CIL to ramp up its output, while also seeking higher production from blocks allocated to utilities and the non-power sector. The growth in production and supplies likely weighed on thermal coal imports in 2024, with seaborne receipts estimated to have dropped last year, a first annual decline since 2021. The dip in India's demand for seaborne cargoes in a well-supplied market was reflected in recent prices, with the GAR 4,200 kcal/kg market for geared Supramaxes falling to a 44-month low of $49.43/t fob Kalimantan on 27 December, the last assessment of 2024. The market eased further to $49.25/t fob Kalimantan on 10 January. Output mix Production at state-controlled CIL stood at 785.2mn t in calendar year 2024, up from 756.1mn t a year earlier, while its supplies totalled 757.4mn t in the 12-month period, up from 738.6mn t in 2023, according to Argus calculations based on the company's monthly output data. State-owned SCCL produced 67.12mn t in 2024, down by 4pc or 2.5mn t in 2023, the coal ministry data showed. But this was more than offset by steady growth in coal production at captive coal blocks allocated to industrial coal consumers, state-government mining companies and some utilities. Coal output from the captive blocks rose to about 187mn t last year, up from 143.3mn t in 2023, the data showed. The higher captive coal production followed an increase in production from coal blocks allocated to state-controlled utility NTPC , which aims to become one of India's biggest coal producers in coming years. India's policy to auction coal mines for commercial mining by private companies is also beginning to support the overall captive coal output. Supply mix Combined domestic coal supplies to utilities from CIL, SCCL and captive blocks reached 831.44mn t, up by 6pc from a year earlier, the coal ministry data showed. India's coal-fired generation — which meets most of its power requirements — reached 1,293.19TWh last year, up by 5pc from a year earlier, the Central Electricity Authority (CEA) data show. Overall domestic coal supplies to non-power consumers such as steel and cement totalled about 179mn t last year, up by 13pc from 2023, according to the coal ministry data. Supplies to captive power units fall under non-power sector as per the data. By Saurabh Chaturvedi India's coal suppy mix (mn t) India's coal output mix (mn t) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil’s inflation decelerates to 4.83pc in December


10/01/25
10/01/25

Brazil’s inflation decelerates to 4.83pc in December

Sao Paulo, 10 January (Argus) — Brazil's headline inflation decelerated to 4.83pc at the end of 2024, as declines in power costs were only partially offset by gains in fuel and food, according to government statistics agency IBGE. The consumer price index (CPI) slowed from 4.87pc in November and compared with 4.76pc in October. The year-end print compared with 4.62pc in December 2023, but was down from 5.79pc in December 2022. Food and beverage costs rose by an annual 7.69pc in December, accounting for much of the monthly increase, following a 7.63pc annual gain in November. Beef costs increased by an annual 20.84pc in December following a 15.43pc annual gain for the prior month. Higher beef costs in the domestic market are related to the Brazilian's real depreciation to the US dollar, with the Brazilian real depreciating by 27.4pc to the US dollar between 31 December 2023 and the same date in 2024 . Still, beef prices decelerated by 5.26pc in December alone, down from 8pc in November. Soybean oil rose by 29.21pc over the year, an increase of 1.64 percentage points from November. Fuel prices rose by an annual 10.09pc in December after an 8.78pc gain in November. Motor fuel costs grew by 0.7pc in December, compared with a 0.15pc drop in the prior month, thanks to higher gasoline prices. Diesel prices increased by 0.66pc in the 12-month period, while it decreased by 2.25pc in November. Gasoline prices — the major individual contributor to the annual high, according to IBGE — rose by 9.71pc in December from 9.12pc in the prior month. Still, that was lower than in December 2023, when the annual inflation for gasoline stood at 11pc. Power costs in December contracted by an annual 0.37pc in December, as improvements in power generation allowed for removal of a surcharge from customer bills, after a gain of 3.46pc the prior month. In November, Brazil faced lower river levels at its hydroelectric plants after a period of severe droughts . Brazil's central bank is targeting CPI of 3pc with a margin of 1.5 percentage point above or below. Brazil's central bank in December raised its target rate to 12.25pc from 11.25pc as the real's depreciation accelerated. It also signaled it is likely to increase the rate to 14.25pc by March. Monthly inflation accelerated to 0.52pc in December from 0.39pc in November. But the rate was lower than in December 2023, when it stood at 0.56pc. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US issues 45Z tax guidance for low-carbon fuels


10/01/25
10/01/25

US issues 45Z tax guidance for low-carbon fuels

Washington, 10 January (Argus) — US producers of low-carbon fuels can start claiming the "45Z" tax credit providing up to $1/USG for road use and $1.75/USG for aviation, following the US Treasury Department's release today of proposed guidance for the credit. The guidance includes proposed regulations and other tools to determine the eligibility of fuels for the 45Z tax credit, which was created by the Inflation Reduction Act to replace a suite of incentives for biofuels that expired at the end of last year. Biofuel producers have been clamoring for guidance from the US Treasury Department so they can start claiming the tax credit, which is available for fuels produced from 1 January 2025 through the end of 2027. "This guidance will help put America on the cutting-edge of future innovation in aviation and renewable fuel while also lowering transportation costs for consumers," US deputy treasury secretary Wally Adeymo said. "Decarbonizing transportation and lowering costs is a win-win for America." The creation of the 45Z tax credit has already prompted a change in US biofuels markets by shifting federal subsidies from blenders to producers. Because the value of tax credit increases for fuels with the lowest lifecycle greenhouse gas (GHG) emissions, it could encourage refiners to source more waste feedstocks such as used cooking oil, rather than conventional crop-based feedstocks. While the guidance is still just a proposal, taxpayers are able to "immediately" use the guidance to claim the 45Z tax credit, until Treasury issues additional guidance, an administration official said. The guidance on 45Z released today affirms that only the producer for the fuel is eligible to claim the credit, not blenders. To be eligible for the tax credit, the fuel must have a "practical or commercial fitness for use in a highway vehicle or aircraft" by itself or when blended into a mixture, Treasury said. Marine diesel and methanol suitable for highway or aircraft use are also eligible for 45Z, as is renewable natural gas that can be used as a transportation fuel. Treasury also released an "annual emissions rate table" offering providers a methodology for determining the lifecycle GHG of fuel. Treasury said a key emissions model from the US Department of Energy, called 45ZCF-GREET, used to calculate the value of the 45Z tax credit is anticipated to be released today, although industry officials said it may be delayed until next week. Treasury said it intends to propose regulations at "a future date" for calculating the GHG emissions benefits of "climate smart agriculture" practices for "cultivating domestic corn, soybeans, and sorghum as feedstocks" for fuel. Those regulations could lower the calculated lifecycle emissions of fuel from those crop-based feedstocks and increase the relative 45Z tax credit. US biofuel producers said they are still awaiting key details on the 45Z tax credit, including the update to the GREET model. Among the outstanding questions is if the guidance released today provides "enough certainty to negotiate feedstock and fuel offtake agreements going forward", said the Clean Fuels America Alliance, an industry group that represents the biodiesel, renewable diesel and sustainable aviation fuel industries. It is unclear how president-elect Donald Trump intends to approach this proposed approach for the 45Z credit, which will be subject to a 90-day public comment period. Trump has promised to "rescind all unspent funds" from the Inflation Reduction Act. But outright repealing 45Z would leave biofuels producers and farmers without a subsidy they say is needed to sustain growth, after the expiration last year of a $1/USG blender tax credit and a tax credit of up to $1.75/USG for sustainable aviation fuel. Biofuel and soybean groups were unsuccessful in a push last year to extend the expiring biofuel tax credits. The 45Z credit is likely to be debated in Congress this year, as Republicans consider repealing parts of the Inflation Reduction Act. House Republicans have already asked for input on revisions to the 45Z credit, signaling they could modify the incentive. In a tightly divided Congress, farm-state lawmakers may hold enough leverage to ensure some type of biofuel incentive — and potentially one friendlier to agricultural producers than 45Z — survives. By Chris Knight and Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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